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)

Russell L. Kane, Esq.

NGAM Distribution, L.P.

399 Boylston Street

Boston, Massachusetts 02116

(Name and address of agent for service)

Registrant’s telephone number, including area code: (617) 449-2822

Date of fiscal year end: September 30

Date of reporting period: September 30, 2016

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:

ANNUAL REPORT

September 30, 2016

Loomis Sayles Global Equity and Income Fund

Loomis Sayles Growth Fund

Loomis Sayles Value Fund

TABLE OF CONTENTS

Portfolio Review  page 1

Portfolio of Investments  page 23

Financial Statements  page  51

Notes to Financial Statements  page 68

LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND

Managers	Symbols
Daniel J. Fuss, CFA®, CIC	Class A    LGMAX
Eileen N. Riley, CFA®	Class C    LGMCX
David W. Rolley, CFA®	Class Y    LSWWX
Lee M. Rosenbaum
Loomis, Sayles & Company, L.P.

Investment Goal

The Fund seeks high total investment return through a combination of capital appreciation and current income.

Market Conditions

Global markets were turbulent at times, producing varied results during the reporting period. Investors grappled with mixed global economic data, questions about future monetary policy, fluctuating oil prices and the ramifications of the U.K.’s vote to leave the European Union (EU) in June. As a result, the year was characterized by periods of calm punctuated by sharp market selloffs. After raising interest rates in December 2015, the Federal Reserve (the Fed) subsequently adopted a more dovish tone in early 2016, given the increasingly mixed global economic outlook. The Fed maintained its cautious stance through the rest of the period, while other major central banks remained highly accommodative. Ultimately, equity and fixed-income markets produced strong returns over the reporting period.

Equity market returns varied by region. U.S. equities performed well as the modest U.S. economic recovery continued. In contrast, U.K. equities were weaker, partly due to currency moves, as the British pound fell sharply versus the U.S. dollar following the June Brexit vote.

The bouts of volatility triggered flights to quality that supported global fixed-income markets, particularly during the first quarter of 2016, when global bonds rallied. Highly accommodative central bank policy supported bond prices, despite forcing many government — and even some corporate — bond yields into negative territory.

Performance Results

For the 12 months ended September 30, 2016, Class A shares of Loomis Sayles Global Equity and Income Fund returned 9.64%. The fund underperformed its primary benchmark, the Morgan Stanley Capital International (MSCI) World Index, which returned 12.02%. The fund underperformed its secondary benchmark, the Citigroup World Government Bond Index, which returned 9.71%. Effective September 30, 2016, the fund’s primary benchmark changed from the MSCI World Index to the MSCI All Country World Index and the fund’s secondary benchmark changed from the Citigroup World Government Bond Index to a blended benchmark of 60% MSCI All Country World Index / 40% Bloomberg Barclays Global Aggregate Bond Index.

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Explanation of Fund Performance

The fund’s target allocations between equity and fixed-income shifted in favor of equity, as we found more opportunities in the equity market.

Within the fund’s equity component, the healthcare sector was the most significant drag on absolute and relative performance, largely due to the pharmaceuticals industry. In particular, Valeant Pharmaceuticals, a Canada-based drug company, weighed on results. The company’s stock struggled on concerns about Valeant’s accounting practices and its relationship with a small specialty online pharmacy (Philidor). In addition, the company faced a potential congressional subpoena regarding aggressive drug price increases. Valeant’s higher leverage, largely due to its mergers and acquisitions (M&A) strategy, led to increased risks for the company’s cash flow, which intensified investor concerns. We sold the position in October 2015. Another drug company — Alexion Pharmaceuticals — also detracted from performance. The company experienced delays in Latin American product revenues due to currency issues and the negative effects of continued low oil prices on the region. Alexion also suffered in sympathy with the broad biotechnology sector, which sold off aggressively in the first quarter of 2016. Alexion’s stock stumbled further after the Brexit vote due to investor concerns about currency fluctuation, given the large amount of company revenue based in the U.K. We eliminated the position in June 2016. Elsewhere in the pharmaceuticals industry, Allergan suffered in sympathy with Valeant, given its similar M&A strategy. However, unlike Valeant, the company had no questionable ties with specialty pharmaceutical companies or egregious price increases. We continue to own Allergan due to the company’s current valuation, solid cash position (after the sale of their generics business to Teva) and strong discipline in delivering cash to shareholders.

U.S. dollar appreciation relative to foreign currencies challenged some of the fund’s non-U.S.-dollar-denominated holdings during the period. During the period the amount of income available to be distributed by the fund was reduced to reflect the realization of currency losses from certain bond sales and maturities. Within the fund’s fixed-income component, an allocation to the Mexican peso weighed on return. Fiscal and trade balance concerns persisted in Mexico, and asset class hedging and investor flows were not favorable. Holdings in the British pound also detracted from performance. The currency ended the period weaker due to concerns about Brexit-related negotiations and economic uncertainty.

On a positive note, the information technology, consumer discretionary and industrial sectors were the largest contributors to the equity component’s absolute and relative performance. Stock selection was the primary driver of outperformance in all three sectors.

In terms of individual contributors, a position in Alibaba aided performance. The China-based e-commerce company outperformed due to accelerating revenue growth fueled by improved monetization (particularly in mobile), better-than-expected margins and positive cash flow generation. The company used its cash flow for thoughtful M&A and modest share buybacks. Additionally, Alibaba provided visibility on a variety of key businesses, and our confidence in the stock remains high. TransDigm, an aerospace components manufacturer, was another main contributor during the period. TransDigm delivered strong results in the last four quarters, with the commercial aftermarket business driving

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LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND

top-line growth and improved margin performance. In addition to delivering strong organic results, management allocated $1.5 billion of capital to acquisitions, which we believe will drive margin and free cash flow growth. We continue to have a favorable view of the business and its prospects. A position in Facebook was also a top contributor, outperforming due to improved revenue, margins, cash flow and a lower tax rate. The social media company is quickly attacking the total addressable market and ramping up key properties where its penetration has only begun. We believe management has thoughtfully strengthened the platform year after year.

Within the fixed-income segment, security selection among lower-rated investment grade and high-yield issuers, including hard currency emerging markets, contributed to performance. These issues outperformed their higher-rated counterparts, largely due to investor demand for higher-yielding assets in a low-yield environment. In particular, energy and basic industry holdings added notable value, aided by improved commodity prices. Selections among communications and consumer (cyclical and non-cyclical) issuers also performed well. In addition, the U.S. yield curve flattened throughout the period, further supporting the portfolio’s longer duration (greater price sensitivity to interest rate changes) and higher-yielding names. Elsewhere, our global bank holdings were positive, despite pressure in the banking sector from low interest rates and Brexit-related uncertainty.

Outlook

We expect the euro zone, England, and Japan to continue expansionary monetary policies to spur growth, though the benefits may be waning. Fiscal policy responses may be the next step. The U.S. economy remains on sure footing. We believe the Fed will raise rates in December 2016, but the market is divided on the issue. The Fed is likely to take a moderate approach to rate hikes heading into 2017 as growth and inflation forecasts remain benign.

Since early 2015, ordinary income distributions for certain Loomis Sayles-managed fixed-income funds have been reduced, primarily due to the impact of foreign currency losses. Fund officers have analyzed the fund’s current portfolio of investments, schedule of maturities and the corresponding amounts of unrealized currency losses that may become realized in the fiscal year ending on September 30, 2017. Based on this analysis, fund officers believe that realized currency losses may have a less significant impact on this fund’s distributions in the 2017 fiscal year. As a result, the distribution amount may improve going forward. This analysis is based on certain assumptions, including but not limited to the level of foreign currency exchange rates, security prices, interest rates and the net asset level of the fund. Changes to these assumptions could impact the analysis and the amounts of future fund distributions.

The U.S. presidential election in November can add to global uncertainty and may be a catalyst for volatility heading into year-end. Europe is also facing challenges, with the migrant crisis fraying EU cohesion and the risk of political instability and EU referendum contagion spreading across the euro zone. The upcoming Italy reform referendum could lead to risk aversion and broad selloffs in peripheral government debt and bank corporate bonds. Elsewhere, OPEC has indicated it may cut oil production at its November meeting, which

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may cause oil prices to appreciate modestly. However, we believe there is a ceiling to oil price appreciation, because rising prices may attract additional production to the market. Ultimately, we believe prices will remain fairly range bound at about $45 to $50 a barrel into 2017.

Hypothetical Growth of $10,000 Investment in Class A Shares⁵

September 30, 2006 through September 30, 2016

See notes to chart on page 5.

Top Ten Holdings as of September 30, 2016

	Security Name	% of Net Assets
1	Alibaba Group Holding Ltd., Sponsored ADR		3.15%
2	TransDigm Group, Inc.		3.06%
3	Facebook, Inc., Class A		2.79%
4	AutoZone, Inc.		2.45%
5	Allergan PLC		2.37%
6	AIA Group Ltd.		2.36%
7	Anheuser-Busch InBev SA/NV		2.18%
8	Nestle S.A., (Registered)		2.17%
9	Alphabet, Inc., Class A		2.10%
10	Sherwin-Williams Co. (The)		2.02%

The portfolio is actively managed and holdings are subject to change. There is no guarantee the Fund continues to invest in the securities referenced. The holdings listed exclude any temporary cash investments.

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LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND

Average Annual Total Returns — September 30, 2016⁵

										Expense Ratio6
	1 Year			5 Years			10 Years			Gross			Net
Class A (Inception 2/1/06)
NAV		9.64	%		9.89	%		7.77	%		1.18	%		1.18	%
With 5.75% Maximum Sales Charge		3.31			8.60			7.14
Class C (Inception 2/1/06)
NAV		8.88			9.08			6.96			1.93			1.93
With CDSC1		7.88			9.08			6.96
Class Y (Inception 5/1/96)
NAV		9.97			10.16			8.04			0.93			0.93
Comparative Performance
MSCI ACWI (Net)2		11.96			10.63			4.34
Blended Index3		10.92			7.15			4.62
MSCI World Index4		12.02			12.27			5.06

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit ngam.natixis.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

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

2 The MSCI All Country World Index (Net) represents the performance of 46 markets in both the developed and emerging markets in Africa, Europe, North America and South America. Effective September 30, 2016, the MSCI ACWI (Net) replaced the MSCI World Index as the Fund’s primary benchmark because the Fund believes the MSCI ACWI (Net), an index which is designed to measure the equity market performance of both developed and emerging markets, is more representative of the Fund’s investment strategy and geographical exposure.

3 The Blended Index is an unmanaged, blended index composed of the following weights: 60% MSCI All Country World Index (Net) and 40% Bloomberg Barclays Global Aggregate Bond Index.

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

5 Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

6 As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/17. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

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LOOMIS SAYLES GROWTH FUND

Manager	Symbols
Aziz V. Hamzaogullari, CFA®	Class A    LGRRX
Loomis, Sayles & Company, L.P.	Class C    LGRCX
	Class N    LGRNX
	Class Y    LSGRX

Investment Goal

The Fund seeks long-term growth of capital.

Market Conditions

Despite several bouts of heightened volatility, U.S. stocks continued to rally, posting solid double-digit gains for the 12-month period. Non-U.S. stocks also advanced sharply, driven by strong gains in the emerging markets. Early in the period, anticipation surrounding the Federal Reserve’s (the Fed’s) strategy for monetary policy normalization — combined with sluggish U.S. economic growth, slowing growth in China, and plunging oil prices — triggered strong month-to-month volatility. The Fed finally lifted short-term rates in December and indicated more tightening would come in 2016. Stocks generally declined until mid-February, when a turnaround in the oil markets, combined with signs that China’s economy was stabilizing, helped restore investor optimism and drive stock prices higher. Strong volatility resurfaced again in June, when U.K. citizens voted to exit the European Union (E.U.). This event sparked a brief selloff among stocks and other riskier assets. But cooler heads ultimately prevailed and a recovery rally ensued. Central banks in Europe, the U.K. and Japan pledged additional support, while the Fed continued to hold rates steady. Better-than-expected corporate earnings reports and modestly improving economic data also encouraged investors, and stocks generally remained on an upward course through September 30.

Performance Results

For the 12 months ended September 30, 2016, Class A shares of Loomis Sayles Growth Fund returned 21.32%. The fund outperformed its benchmark, the Russell 1000^® Growth Index, which returned 13.76%.

Explanation of Fund Performance

The Fund’s positions in Amazon, Alibaba, and Facebook contributed to performance. Stock selection in the information technology, consumer discretionary and energy sectors, along with our overweight position in information technology and underweight in consumer discretionary, contributed to relative performance. Among individual holdings, global e-commerce company Amazon was a main contributor. During the period, the company reported strong growth in revenue that exceeded consensus expectations and strong gross merchandise volume (GMV) globally. Amazon Web Services (AWS) also posted impressive revenue growth that was significantly higher than our estimate for overall spending by businesses on enterprise information technology (IT). With its sales mix

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LOOMIS SAYLES GROWTH FUND

shifting increasingly to third-party e-commerce sales, AWS, advertising revenue and higher-margin product categories, Amazon reported solid margins and significant free cash flow growth even while the company continued making strategic investments. We believe Amazon is one of the best-positioned companies in e-commerce and enterprise IT — each addressing large, underpenetrated markets where secular growth is still in its early stages.

In addition, China-based e-commerce company Alibaba was a top contributor. The company reported fundamentally strong results during the period, with revenue growth consistently exceeding consensus expectations and GMV increased at a higher rate than the overall growth rate in China’s retail commerce. Growth drivers included better monetization and increasing consumer engagement. The higher monetized mobile platform now accounts for 75% of the company’s total GMV, up from 55% just one year ago. At the end of the period, the company reported 434 million monthly active users, with 427 million active monthly mobile users that represented a 39% increase compared with last year. China’s structural shift to e-commerce is the secular growth driver for Alibaba. Its competitive advantages include its strong brand, the powerful network and ecosystem of its interconnected sites, and economies of scale. We believe the current market price embeds expectations for key revenue and cash flow growth drivers that are well below our long-term assumptions.

Social media company Facebook reported robust revenue growth throughout the period and continued to take market share. The company’s growth rate was more than three times that of its online competitors and significantly higher than traditional advertisers. Mobile advertising grew to 84% of Facebook’s advertising revenue during the period and was up from 76% a year ago. Facebook’s user base grew 15% year over year to 1.7 billion users, with 87% residing outside North America. Free cash flow remained robust during the period. The global secular shift from traditional advertising to online advertising is the largest growth driver for Facebook. We believe Facebook’s unique attributes, such as its brand and network and social advantages, position the company to drive revenue, cash flow growth, and market share gains as this long-term secular shift progresses.

On the down side, positions in Novo Nordisk, Novartis, and SEI Investments detracted from performance. At a sector level, stock selection in the financials sector detracted from relative performance. In terms of individual holdings, a position in Novo Nordisk, a diabetes-focused pharmaceutical company, was a main detractor. The company reported fundamentally solid growth during the period led by strong performance of its next-generation insulin products and non-insulin anti-diabetic therapy, Victoza. However, the company’s stock price experienced near-term pressure due to lower-than-expected management guidance and missing consensus expectations in the second half of the period. We continue to believe Novo’s competitive advantages, including deep experience in diabetes care and therapeutic proteins, a robust infrastructure that took decades to build, efficient manufacturing techniques and a robust pipeline and economies of scale, are difficult to replicate. Accordingly, we believe Novo Nordisk has an unmatched ability to engineer, formulate, develop and deliver value-added treatments for unmet patient needs. We believe the company’s shares are currently selling below our estimate of intrinsic value (our estimate of the true worth of a business, which we define as the present value of all

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expected future net cash flows to the company) and offer an attractive reward-to-risk opportunity.

A position in Novartis was another detractor from performance. The company’s branded and generic (Sandoz) pharmaceutical businesses reported solid results during the period, but they were modestly offset by near-term weakness in the company’s Alcon eye care division. This weakness was due to lower demand for surgical equipment in the U.S. and emerging markets as well as increasing competition from cheaper generic allergy products with expiring patents in the U.S. We believe Novartis has significant competitive advantages, including its brand, culture of innovation, product breadth, clinical trials expertise, powerful distribution network and the benefits of scale. We believe Novartis is well positioned to benefit from significant long-term opportunities driven by global population growth and the emphasis on improving healthcare standards in developed and emerging markets.

Although asset manager SEI Investments reported solid revenue growth during the period, management reiterated its decision to augment capital investments in sales, operational capacity and technology, which led to concerns about near-term profitability and pressured the stock price. Share prices recovered somewhat later in the period, when reported earnings exceeded expectations and net new sales events had the second-highest quarter since 2010. SEI’s high-quality business model benefits from high recurring revenues and high switching costs for customers, which has led to average banking client relationships of more than 17 years. Over our investment time horizon, we believe SEI will be able to grow margins faster than revenue and generate double-digit free cash flow growth.

Outlook

Our investment process is characterized by bottom-up, fundamental research and a long-term investment time horizon. The nature of the process leads to a lower-turnover portfolio in which sector positioning is the result of stock selection. The fund ended the quarter with overweight positions in the information technology, consumer staples, financials and energy sectors and underweight positions in the consumer discretionary, industrials and healthcare sectors. We did not own positions in the materials, real estate, telecommunication services and utilities sectors.

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LOOMIS SAYLES GROWTH FUND

Hypothetical Growth of $10,000 Investment in Class A Shares³

September 30, 2006 through September 30, 2016

Top Ten Holdings as of September 30, 2016

	Security Name	% of Net Assets
1	Amazon.com, Inc.		7.27%
2	Facebook, Inc., Class A		5.99%
3	Cisco Systems, Inc.		5.07%
4	Alibaba Group Holding Ltd., Sponsored ADR		4.93%
5	Visa, Inc., Class A		4.81%
6	QUALCOMM, Inc.		4.48%
7	Monster Beverage Corp.		4.23%
8	Oracle Corp.		3.84%
9	Danone, Sponsored ADR		3.73%
10	Procter & Gamble Co. (The)		3.50%

The portfolio is actively managed and holdings are subject to change. There is no guarantee the Fund continues to invest in the securities referenced. The holdings listed exclude any temporary cash investments.

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Average Annual Total Returns — September 30, 2016³

													Expense Ratio4
	1 Year			5 Years			10 Years			Life of Class N			Gross			Net
Class A (Inception 12/31/96)
NAV		21.32	%		18.43	%		7.65	%		—	%		0.92	%		0.92	%
With 5.75% Maximum Sales Charge		14.39			17.04			7.01			—
Class C (Inception 9/12/03)
NAV		20.48			17.54			6.86			—			1.67			1.67
With CDSC1		19.48			17.54			6.86			—
Class N (Inception 2/1/13)
NAV		21.75			—			—			15.65			9.82			0.55
Class Y (Inception 5/16/91)
NAV		21.55			18.71			7.99			—			0.67			0.67
Comparative Performance
Russell 1000® Growth Index2		13.76			16.60			8.85			13.80

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit ngam.natixis.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

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

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

3 Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

4 As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/17. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

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LOOMIS SAYLES VALUE FUND

Managers	Symbols
Arthur J. Barry, CFA®	Class A	LSVRX
Adam C. Liebhoff	Class C	LSCVX
Loomis, Sayles & Company, L.P.	Class N	LSVNX
	Class Y	LSGIX
	Admin Class	LSAVX

Investment Goal

The Fund seeks long-term growth of capital and income.

Market Conditions

Despite a fair amount of volatility, equity market performance was positive for the 12-month period. Although the Federal Reserve (the Fed) neglected to raise short-term interest rates at its September meeting, the probability for a 2016 rate hike increased, driving the 10-year Treasury yield higher in the final months of the period. Accordingly, equity market leadership changed hands recently, favoring the more cyclical sectors (technology, financials and industrials) and finally providing a small headwind to the more defensive sectors (telecommunications, utilities and staples). Energy temporarily faded to the background in terms of global headlines, supplanted perhaps by the U.S. presidential election, the results of which likely will influence market sentiment during the fourth quarter.

Performance Results

For the 12 months ended September 30, 2016, Class A shares of Loomis Sayles Value Fund returned 9.65%. The fund underperformed its benchmark, the Russell 1000^® Value Index, which returned 16.20%.

Explanation of Fund Performance

Although all sectors contributed positively to absolute return, stock selection within the healthcare, financial and energy sectors, combined with an overweight position in the consumer discretionary sector, weighed heavily on relative performance. Meanwhile, stock selection within the industrials sector contributed most to overall performance.

In terms of individual holdings, a position in Marathon Oil, an independent exploration and production company, was a primary detractor. The stock was particularly weak in the face of falling oil prices in January. At the same time, concerns about the company’s balance sheet emerged, as leverage appeared exceedingly high given the outlook for commodity prices. By mid-February, Marathon had become a fairly small position in the fund, and we decided to exit the holding and reallocate the proceeds into Hess. We believed Hess offered upside potential similar to Marathon but with much less risk.

In addition, shares of Knowles, a manufacturer of cellular microphones, declined early in the period, as investors grew concerned about a potential major slowdown in the global

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smartphone market. Such a slowdown could have a substantially negative impact on Knowles. Given our small weighting in the company, and the fact that it dropped below $1 billion in market capitalization, we exited the stock in the first quarter of 2016.

A position in pharmaceutical company Teva also weighed on relative performance. Several factors contributed to the stock’s underperformance, including generic price deflation, concerns about Teva’s acquisition of Allergan’s generic business, and a litigation risk that could invalidate the company’s intellectual property on its most profitable drug.

On the positive side, software company Microsoft was a top contributor, largely due to its transition from license to subscription revenue for its applications and to its growing new market for Infrastructure as a Service (IAAS–Azure). Microsoft has shown a sharper pace of innovation and a willingness to partner with leading technology innovators, all while reining in costs and returning substantial cash to shareholders.

Shares of Symantec, also a software company, climbed materially as the firm stepped up its focus on the security market by divesting Veritas and acquiring Blue Coat Systems, a leading provider of advanced web security solutions. We are optimistic about the acquisition of Blue Coat, as it provides Symantec with exposure to rapidly growing segments of the security business. The deal also put Blue Coat’s CEO in charge of the whole enterprise, which we believe is a positive factor.

A position in pharmaceutical company Merck & Co. also was a main contributor to absolute performance. The stock performed well due to the launch of the company’s immune oncology drug, Keytruda, for the treatment of lung cancer.

Outlook

With major U.S. equity indices at or close to record highs, the bull market remains intact. However, it is now the second-longest bull market since the 1930s. In general, bull markets do not die of old age; instead, they falter when intervening macroeconomic events, such as rising inflation, cause central banks to tighten monetary policy for an extended period. Currently, we believe the Fed may raise interest rates 25 basis points by year-end, but all signs point to a very slow, deliberate tightening cycle. These measured expectations helped prolong the business cycle and fuel the rally in stock prices. If equity earnings move back to a growth mode later this year and in 2017, we expect equity performance to remain balanced across the market cap spectrum and among growth and value styles.

We will continue to take a security-specific approach to investing. As always, we view opportunities as defined by our reward to risk profiles, regardless of the direction of the markets.

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LOOMIS SAYLES VALUE FUND

Hypothetical Growth of $10,000 Investment in Class A Shares^1,4

September 30, 2006 through September 30, 2016

Top Ten Holdings as of September 30, 2016

	Security Name	% of Net Assets
1	JPMorgan Chase & Co.		2.99%
2	Microsoft Corp.		2.73%
3	Wells Fargo & Co.		2.27%
4	Bank of America Corp.		2.15%
5	Pfizer, Inc.		2.13%
6	UnitedHealth Group, Inc.		2.04%
7	United Technologies Corp.		1.98%
8	Merck & Co., Inc.		1.95%
9	Medtronic PLC		1.92%
10	Halliburton Co.		1.91%

The portfolio is actively managed and holdings are subject to change. There is no guarantee the Fund continues to invest in the securities referenced. The holdings listed exclude any temporary cash investments.

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Average Annual Total Returns — September 30, 2016⁴

													Expense Ratio5
	1 Year			5 Years			10 Years			Life of Class N			Gross			Net
Class A (Inception 6/30/06)1
NAV		9.65	%		14.87	%		5.78	%		—	%		0.95	%		0.95	%
With 5.75% Maximum Sales Charge		3.36			13.52			5.16			—
Class C (Inception 6/1/07)1
NAV		8.85			14.02			5.00			—			1.70			1.70
With CDSC2		7.98			14.02			5.00			—
Class N (Inception 2/1/13)
NAV		10.08			—			—			9.69			0.57			0.57
Class Y (Inception 5/13/91)
NAV		9.92			15.16			6.08			—			0.70			0.70
Admin Class (Inception 2/1/10)1
NAV		9.11			14.54			5.49			—			1.23			1.23
Comparative Performance
Russell 1000® Value Index3		16.20			16.15			5.85			11.32

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit ngam.natixis.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

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

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

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

4 Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

5 As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/17. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

1639614.1.1

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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.

All investing involves risk, including the risk of loss. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

ADDITIONAL INDEX INFORMATION

This document may contain references to third party copyrights, indexes, and trademarks, each of which is the property of its respective owner. Such owner is not affiliated with Natixis Global Asset Management or any of its related or affiliated companies (collectively “NGAM”) and does not sponsor, endorse or participate in the provision of any NGAM services, funds or other financial products.

The index information contained herein is derived from third parties and is provided on an “as is” basis. The user of this information assumes the entire risk of use of this information. Each of the third party entities involved in compiling, computing or creating index information disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to such information.

PROXY VOTING INFORMATION

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

QUARTERLY PORTFOLIO SCHEDULES

The Natixis Funds file complete schedules 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.

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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, and ongoing costs, including management fees, distribution and/or service fees (12b-1 fees), and other fund expenses. Certain exemptions may apply. These costs are described in more detail in the Fund’s 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 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, 2016 through September 30, 2016. 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 Period row as shown below for your class.

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

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

LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND	BEGINNING ACCOUNT VALUE 4/1/2016		ENDING ACCOUNT VALUE 9/30/2016		EXPENSES PAID DURING PERIOD* 4/1/2016 – 9/30/2016
Class A
Actual		$1,000.00		$1,062.60		$6.08
Hypothetical (5% return before expenses)		$1,000.00		$1,019.10		$5.96
Class C
Actual		$1,000.00		$1,059.50		$9.94
Hypothetical (5% return before expenses)		$1,000.00		$1,015.35		$9.72
Class Y
Actual		$1,000.00		$1,064.00		$4.80
Hypothetical (5% return before expenses)		$1,000.00		$1,020.35		$4.70

* Expenses are equal to the Fund’s annualized expense ratio: 1.18%, 1.93% and 0.93% 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 (183), divided by 366 (to reflect the half-year period).

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LOOMIS SAYLES GROWTH FUND	BEGINNING ACCOUNT VALUE 4/1/2016		ENDING ACCOUNT VALUE 9/30/2016		EXPENSES PAID DURING PERIOD* 4/1/2016 – 9/30/2016
Class A
Actual		$1,000.00		$1,112.60		$4.86
Hypothetical (5% return before expenses)		$1,000.00		$1,020.40		$4.65
Class C
Actual		$1,000.00		$1,108.20		$8.80
Hypothetical (5% return before expenses)		$1,000.00		$1,016.65		$8.42
Class N
Actual		$1,000.00		$1,114.70		$3.07
Hypothetical (5% return before expenses)		$1,000.00		$1,022.10		$2.93
Class Y
Actual		$1,000.00		$1,113.70		$3.54
Hypothetical (5% return before expenses)		$1,000.00		$1,021.65		$3.39

* Expenses are equal to the Fund’s annualized expense ratio: 0.92%, 1.67%, 0.58% and 0.67% for Class A, C, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 366 (to reflect the half-year period).

LOOMIS SAYLES VALUE FUND	BEGINNING ACCOUNT VALUE 4/1/2016		ENDING ACCOUNT VALUE 9/30/2016		EXPENSES PAID DURING PERIOD* 4/1/2016 – 9/30/2016
Class A
Actual		$1,000.00		$1,062.50		$4.85
Hypothetical (5% return before expenses)		$1,000.00		$1,020.30		$4.75
Class C
Actual		$1,000.00		$1,058.50		$8.65
Hypothetical (5% return before expenses)		$1,000.00		$1,016.60		$8.47
Class N
Actual		$1,000.00		$1,064.50		$2.94
Hypothetical (5% return before expenses)		$1,000.00		$1,022.15		$2.88
Class Y
Actual		$1,000.00		$1,063.40		$3.56
Hypothetical (5% return before expenses)		$1,000.00		$1,021.55		$3.49
Admin Class
Actual		$1,000.00		$1,058.20		$6.02
Hypothetical (5% return before expenses)		$1,000.00		$1,019.15		$5.91

* Expenses are equal to the Fund’s annualized expense ratio: 0.94%, 1.68%, 0.57%, 0.69% and 1.17% for Class A, C, N, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 366 (to reflect the half-year period).

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BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

The Board of Trustees of the Trust (the “Board”), 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 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 (the “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 the fees charged to institutional accounts with similar strategies managed by the Adviser, if any, and to those of peer groups of funds and information about any applicable expense caps and/or fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Adviser and (v) information obtained through the completion by the Adviser of a questionnaire distributed on behalf of the Trustees. The Board, including the Independent Trustees, also considers 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, if applicable, 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, (vii) information about amounts invested by the Funds’ portfolio managers in the Funds or in similar accounts that they manage and (viii) 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 their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board 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 each Fund’s performance and fee differentials against each Fund’s peer group/category,

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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 similarly categorized funds. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review Committee and/or the full Board, 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 Trustees also receive periodic updates between meetings.

The Board most recently approved the continuation of the Agreements at its meeting held in June 2016. The Agreements were continued for a one-year period for the Funds. In considering whether to approve the continuation of the Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

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.

The Trustees considered not only the advisory services provided by the Adviser to the Funds, but also the monitoring and oversight services provided by NGAM Advisors, L.P. (“NGAM Advisors”). They also considered the administrative services provided by NGAM 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 that compared the performance of the Funds to the performance of peer groups and categories of funds and the Funds’ respective performance benchmarks. In addition, the Trustees also reviewed data prepared by an independent third party that analyzed the performance of the Funds using a variety of performance metrics, including metrics that 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 the Loomis Sayles Value Fund, the performance of which lagged that of a relevant peer group median and/or category median for certain (although not all) periods, the Board concluded that other factors relevant to performance supported renewal of the Agreements. These factors included the following: (1) that the underperformance was attributable, to a significant extent, to investment decisions by the Adviser that were reasonable and

19  |

consistent with the Fund’s investment objective and policies; and (2) that the Fund’s long-term performance was competitive when compared to relevant performance benchmarks or peer groups.

The Trustees also considered the Adviser’s performance and reputation generally, the performance of the fund family generally, 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 (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. 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 and the greater regulatory costs associated with the management of such assets. In evaluating each Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund and the need for the Adviser to offer competitive compensation and the potential need to expend additional resources to the extent the Funds grow in size. 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 all three of the Funds included in this report have expense caps in place, and the Trustees considered that the current expenses of each Fund are below the cap.

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 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 changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser compensation or profitability were issues, 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.

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After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the advisory fee charged to each of the Funds was 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 or caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense waivers or caps for certain funds. Management explained that a number of factors are taken into account in considering the possible implementation of breakpoints or an expense cap for a fund, including, among other things, factors such as a fund’s assets, the projected growth of a fund, projected profitability and a fund’s fees and performance. With respect to economies of scale, the Trustees noted that each Fund’s management fee and overall net expense ratio was at or below median compared to a peer group of funds and that each of the Funds was subject to an expense cap or waiver. 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 concluded, 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:

· The effect of recent market and economic events on the performance, asset levels and expense ratios of each Fund.

· 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 (if any) generated by the Funds’ securities transactions. The Trustees also considered the benefits to the parent company of NGAM Advisors from the retention of the 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.

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· The Trustees’ review and discussion of the Funds’ advisory arrangements in prior years, and management’s record of responding to Trustee concerns raised during the year and in prior years.

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 Agreements should be continued through June 30, 2017.

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Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund

Shares		Description	Value (†)
	Common Stocks — 65.4% of Net Assets
		Belgium — 2.2%
	254,983	Anheuser-Busch InBev SA/NV	$	33,532,248
		Canada — 1.0%
	318,000	CGI Group, Inc., Class A(b)		15,146,781
		China — 3.1%
	458,620	Alibaba Group Holding Ltd., Sponsored ADR(b)		48,517,410
		France — 1.8%
	296,443	Thales S.A.		27,296,723
		Hong Kong — 2.4%
	5,402,000	AIA Group Ltd.		36,327,053
		India — 1.9%
	1,144,407	HCL Technologies Ltd.		13,768,551
	703,644	HDFC Bank Ltd.		15,561,172
				29,329,723
		Italy — 1.0%
	313,494	Luxottica Group S.p.A.		14,973,444
		Japan — 1.0%
	471,970	Nomura Research Institute Ltd.		16,289,630
		Sweden — 1.6%
	540,721	Assa Abloy AB		10,980,774
	479,965	Atlas Copco AB, A Shares		14,449,121
				25,429,895
		Switzerland — 5.0%
	138,887	Dufry AG, (Registered)(b)		17,412,390
	24,366	Geberit AG, (Registered)		10,680,598
	422,912	Nestle S.A., (Registered)		33,394,850
	59,828	Roche Holding AG		14,867,163
				76,355,001
		United Kingdom — 3.0%
	3,019,959	ITV PLC		7,325,580
	7,642,635	Legal & General Group PLC		21,659,382
	456,704	London Stock Exchange Group PLC		16,549,774
				45,534,736
		United States — 41.4%
	158,432	Allergan PLC(b)		36,488,474
	23,661	Alphabet, Inc., Class C(b)		18,391,459
	40,243	Alphabet, Inc., Class A(b)		32,357,787
	24,222	Amazon.com, Inc.(b)		20,281,323
	48,974	AutoZone, Inc.(b)		37,628,683
	413,239	Comcast Corp., Class A		27,414,275
	272,272	CVS Health Corp.		24,229,485
	670	Dex Media, Inc.(b)(c)		1,332
	231,232	Eaton Corp. PLC		15,194,255

See accompanying notes to financial statements.

23  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Shares		Description	Value (†)
		United States — continued
	51,290	EOG Resources, Inc.	$	4,960,256
	334,377	Facebook, Inc., Class A(b)		42,890,538
	131,293	FactSet Research Systems, Inc.		21,282,595
	100,743	Goldman Sachs Group, Inc. (The)		16,246,824
	9,113	Halcon Resources Corp.(b)		85,480
	955	Hawaiian Telcom Holdco, Inc.(b)		21,382
	217,929	LyondellBasell Industries NV, Class A		17,578,153
	104,480	M&T Bank Corp.		12,130,128
	435,852	Marriott International, Inc., Class A		29,345,915
	42,462	Mettler-Toledo International, Inc.(b)		17,826,821
	434,998	Newell Brands, Inc.		22,906,995
	15,349	Priceline Group, Inc. (The)(b)		22,585,900
	142,819	Roper Technologies, Inc.		26,060,183
	182,179	S&P Global, Inc.		23,056,574
	149,977	Schlumberger Ltd.		11,794,191
	112,123	Sherwin-Williams Co. (The)		31,019,949
	295,149	Texas Instruments, Inc.		20,713,557
	163,030	TransDigm Group, Inc.(b)		47,135,234
	89,478	Travelers Cos., Inc. (The)		10,249,705
	185,190	UnitedHealth Group, Inc.		25,926,600
	120,305	Walt Disney Co. (The)		11,171,522
	244,061	Wells Fargo & Co.		10,807,021
				637,782,596
		Total Common Stocks (Identified Cost $856,004,621)		1,006,515,240
Principal Amount (‡)
	Bonds and Notes — 31.7%
	Non-Convertible Bonds — 30.7%
		Argentina — 0.3%
$	775,000	Provincia de Buenos Aires, 9.125%, 3/16/2024, 144A		866,806
	535,000	Republic of Argentina, 6.875%, 4/22/2021, 144A		582,385
	150,000	Republic of Argentina, 7.625%, 4/22/2046, 144A		169,094
	382,136	Transportadora de Gas del Sur S.A., 9.625%, 5/14/2020, 144A		413,662
	565,000	YPF S.A., 8.500%, 3/23/2021, 144A		629,269
	1,755,000	YPF S.A., 8.750%, 4/04/2024, 144A		1,954,368
				4,615,584
		Australia — 0.2%
	970,000	Commonwealth Bank of Australia, 1.375%, 9/06/2018, 144A(d)		968,953
	670,000	Goodman Australia Industrial Fund Bond Issuer Pty Ltd., 3.400%, 9/30/2026, 144A		673,474
	110,000	Incitec Pivot Finance LLC, 6.000%, 12/10/2019, 144A		119,139
	95,000	Sydney Airport Finance Co. Pty Ltd., 3.375%, 4/30/2025, 144A		97,341
	120,000	Sydney Airport Finance Co. Pty Ltd., 5.125%, 2/22/2021, 144A		134,607
	950,000	Telstra Corp. Ltd., 3.125%, 4/07/2025, 144A(d)		991,297
				2,984,811

See accompanying notes to financial statements.

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Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Belgium — 0.1%
$	1,040,000	Anheuser-Busch InBev Finance, Inc., 3.300%, 2/01/2023(d)	$	1,097,730
	350,000	Anheuser-Busch InBev S.A., EMTN, 6.500%, 6/23/2017, (GBP)(d)		471,976
	440,000	Solvay Finance (America) LLC, 3.400%, 12/03/2020, 144A		460,495
				2,030,201
		Brazil — 0.9%
	600,000	Banco Santander Brasil S.A., 4.625%, 2/13/2017, 144A		604,320
	800,000	Braskem Finance Ltd., 5.750%, 4/15/2021, 144A		838,560
	2,250(††)	Brazil Notas do Tesouro Nacional, Series F, 10.000%, 1/01/2019, (BRL)		672,357
	8,815(††)	Brazil Notas do Tesouro Nacional, Series F, 10.000%, 1/01/2021, (BRL)		2,583,753
	2,300,000	BRF S.A., 7.750%, 5/22/2018, 144A, (BRL)(d)		656,304
	1,000,000	CIMPOR Financial Operations BV, 5.750%, 7/17/2024, 144A		855,000
	400,000	Cosan Luxembourg S.A., 5.000%, 3/14/2023, 144A		393,000
	885,000	Embraer Netherlands Finance BV, 5.050%, 6/15/2025(d)		889,425
	800,000	Gerdau Trade, Inc., 5.750%, 1/30/2021, 144A		828,240
	226,000	GTL Trade Finance, Inc., 5.893%, 4/29/2024, 144A		222,610
	915,000	Itau Unibanco Holding S.A., 2.850%, 5/26/2018, 144A		917,288
	1,825,000	Petrobras Global Finance BV, 4.375%, 5/20/2023		1,632,462
	320,000	Petrobras Global Finance BV, 5.375%, 1/27/2021		316,480
	775,000	Petrobras Global Finance BV, 5.750%, 1/20/2020		798,638
	300,000	Petrobras Global Finance BV, 6.875%, 1/20/2040		264,810
	500,000	Tupy Overseas S.A., 6.625%, 7/17/2024, 144A		504,375
	546,000	Vale Overseas Ltd., 6.875%, 11/21/2036		530,712
	225,000	Vale S.A., 5.625%, 9/11/2042		189,000
				13,697,334
		Canada — 2.0%
	1,085,000	Air Canada, 7.625%, 10/01/2019, 144A, (CAD)		858,547
	495,000	Air Canada Pass Through Trust, Series 2015-2, Class A, 4.125%, 6/15/2029, 144A(d)		525,319
	815,000	Bank of Montreal, 1.750%, 6/15/2022, 144A(d)		814,813
	5,065,000	Canadian Government, 1.250%, 9/01/2018, (CAD)(d)		3,915,140
	11,900,000	Canadian Government, 1.750%, 9/01/2019, (CAD)		9,391,199
	970,000	Canadian Imperial Bank of Commerce, 1.600%, 9/06/2019(d)		970,007
	1,335,000	Institutional Mortgage Securities Canada, Inc., Series 2014-5A, Class A2, 2.616%, 7/12/2047, 144A, (CAD)(d)		1,018,648
	6,165,000	Province of Ontario Canada, 1.250%, 6/17/2019(d)		6,156,486
	7,200,000	Province of Ontario Canada, 1.875%, 5/21/2020		7,319,066
	600,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)(d)		503,804
				31,473,029
		Chile — 0.4%
	1,450,000	Banco de Credito e Inversiones, 3.000%, 9/13/2017, 144A(d)		1,469,824
	200,000	Celulosa Arauco y Constitucion S.A., 4.750%, 1/11/2022		213,828
	600,000	Chile Government International Bond, 3.125%, 1/21/2026(d)		636,750
	300,000,000	Chile Government International Bond, 5.500%, 8/05/2020, (CLP)(d)		485,279
	1,160,000	CODELCO, Inc., 4.500%, 9/16/2025, 144A(d)		1,223,256
	250,000	Engie Energia Chile S.A., 5.625%, 1/15/2021, 144A		276,960

See accompanying notes to financial statements.

25  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Chile — continued
$	800,000	Inversiones CMPC S.A., 4.375%, 5/15/2023, 144A(d)	$	834,282
	550,000	Itau CorpBanca, 3.125%, 1/15/2018(d)		556,856
	1,120,000	Transelec S.A., 4.250%, 1/14/2025, 144A(d)		1,176,800
				6,873,835
		China — 0.1%
	800,000	Baidu, Inc., 2.250%, 11/28/2017(d)		806,404
	700,000	Baidu, Inc., 3.250%, 8/06/2018(d)		718,332
	400,000	China Resources Gas Group Ltd., 4.500%, 4/05/2022, 144A(d)		437,461
				1,962,197
		Colombia — 0.4%
	555,000	Colombia Telecomunicaciones S.A. E.S.P., 5.375%, 9/27/2022, 144A		545,287
	610,000	Ecopetrol S.A., 4.125%, 1/16/2025		592,279
	600,000	Ecopetrol S.A., 5.875%, 9/18/2023(d)		647,250
	490,000	Ecopetrol S.A., 5.875%, 5/28/2045		449,477
	1,265,000,000	Emgesa S.A. E.S.P., 8.750%, 1/25/2021, 144A, (COP)		433,837
	2,140,000,000	Empresas Publicas de Medellin E.S.P., 8.375%, 2/01/2021, 144A, (COP)(d)		715,497
	200,000,000	Republic of Colombia, 7.750%, 4/14/2021, (COP)		73,723
	6,150,000,000	Titulos De Tesoreria, Series B, 7.500%, 8/26/2026, (COP)(d)		2,208,395
				5,665,745
		Dominican Republic — 0.1%
	1,410,000	Dominican Republic International Bond, 5.500%, 1/27/2025, 144A		1,494,600
	425,000	Dominican Republic International Bond, 8.625%, 4/20/2027, 144A		520,625
				2,015,225
		France — 0.3%
	970,000	Air Liquide Finance S.A., 1.375%, 9/27/2019, 144A		969,486
	425,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		470,156
	15,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		16,350
	200,000	AXA S.A., 7.125%, 12/15/2020, (GBP)(d)		317,878
	390,000	Credit Agricole S.A., (fixed rate to 6/23/2026, variable rate thereafter), 7.500%, (GBP)(e)		499,180
	1,015,000	Societe Generale S.A., 4.750%, 11/24/2025, 144A(d)		1,048,316
	475,000	Societe Generale S.A., (fixed rate to 4/07/2021, variable rate thereafter), 6.750%, (EUR)(e)		524,253
				3,845,619
		Germany — 0.1%
	470,000	Commerzbank AG, EMTN, 4.000%, 3/23/2026, (EUR)		532,066
	200,000	Schaeffler Finance BV, 3.250%, 5/15/2025, (EUR)		242,756
	300,000	ZF North America Capital, Inc., 2.750%, 4/27/2023, (EUR)		358,573
				1,133,395
		Hong Kong — 0.0%
	355,000	AIA Group Ltd., 3.200%, 3/11/2025, 144A(d)		362,283
	400,000	Hutchison Whampoa International 11 Ltd., 3.500%, 1/13/2017, 144A(d)		402,458
				764,741

See accompanying notes to financial statements.

|  26

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Hungary — 0.2%
$	1,330,000	Hungary Government International Bond, 5.375%, 3/25/2024	$	1,544,516
	980,000	Hungary Government International Bond, 5.750%, 11/22/2023(d)		1,153,950
				2,698,466
		Iceland — 0.1%
	1,000,000	Republic of Iceland, 5.875%, 5/11/2022, 144A(d)		1,174,860
		India — 0.3%
	550,000	Axis Bank Ltd., 3.250%, 5/21/2020, 144A		564,371
	990,000	Bharti Airtel International BV, 5.350%, 5/20/2024, 144A(d)		1,083,377
	1,400,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		1,426,638
	750,000	Reliance Holdings USA, Inc., 5.400%, 2/14/2022, 144A(d)		844,961
	700,000	State Bank of India/London, 4.125%, 8/01/2017, 144A		713,381
				4,632,728
		Indonesia — 0.6%
	300,000	Indonesia Government International Bond, 4.125%, 1/15/2025, 144A		320,043
	525,000	Indonesia Government International Bond, 4.750%, 1/08/2026, 144A		586,871
	3,500,000,000	Indonesia Government International Bond, 9.500%, 7/15/2023, (IDR)		303,311
	781,000,000	Indonesia Government International Bond, 11.500%, 9/15/2019, (IDR)		67,575
	11,640,000,000	Indonesia Government International Bond, Series FR53, 8.250%, 7/15/2021, (IDR)		940,939
	12,100,000,000	Indonesia Treasury Bond, 6.125%, 5/15/2028, (IDR)		846,970
	24,000,000,000	Indonesia Treasury Bond, 7.875%, 4/15/2019, (IDR)(d)		1,897,786
	14,000,000,000	Indonesia Treasury Bond, 8.375%, 3/15/2024, (IDR)(d)		1,154,767
	400,000	Listrindo Capital BV, 6.950%, 2/21/2019, 144A		414,402
	795,000	Perusahaan Listrik Negara PT, 5.250%, 10/24/2042, 144A		820,838
	545,000	Republic of Indonesia, 2.875%, 7/08/2021, 144A, (EUR)		653,612
	500,000	TBG Global Pte Ltd., 4.625%, 4/03/2018, 144A		506,250
				8,513,364
		Italy — 0.4%
	440,000	Italy Buoni Poliennali Del Tesoro, 1.500%, 6/01/2025, (EUR)(d)		513,797
	2,080,000	Italy Buoni Poliennali Del Tesoro, 4.500%, 8/01/2018, (EUR)(d)		2,531,904
	2,295,000	Italy Buoni Poliennali Del Tesoro, 4.750%, 8/01/2023, 144A, (EUR)(d)		3,287,684
				6,333,385
		Japan — 0.3%
	900,000	Bank of Tokyo-Mitsubishi UFJ Ltd. (The), 1.700%, 3/05/2018, 144A(d)		901,275
	940,000	Bank of Tokyo-Mitsubishi UFJ Ltd. (The), 2.150%, 9/14/2018, 144A(d)		948,194
	540,000	Nissan Motor Acceptance Corp., 2.000%, 3/08/2019, 144A(d)		544,763
	1,165,000	Nomura Holdings, Inc., GMTN, 2.750%, 3/19/2019(d)		1,191,539
	850,000	SoftBank Group Corp., 4.500%, 4/15/2020, 144A		881,875
				4,467,646
		Kazakhstan — 0.0%
	475,000	Tengizchevroil Finance Co. International Ltd., 4.000%, 8/15/2026, 144A		470,250
		Korea — 0.6%
	3,700,000	Export-Import Bank of Korea, 3.000%, 5/22/2018, 144A, (NOK)(d)		472,043

See accompanying notes to financial statements.

27  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Korea — continued
$	600,000	Hyundai Capital Services, Inc., 3.500%, 9/13/2017, 144A(d)	$	611,700
	600,000	Industrial Bank of Korea, 2.375%, 7/17/2017, 144A(d)		604,717
	400,000	KEB Hana Bank, 4.000%, 11/03/2016, 144A(d)		400,898
	400,000	Korea Development Bank (The), 4.625%, 11/16/2021(d)		455,524
	630,000	Korea Development Bank (The), MTN, 4.500%, 11/22/2019, (AUD)(d)		506,822
	400,000	Korea National Oil Corp., 3.125%, 4/03/2017, 144A(d)		403,615
	2,589,140,000	Korea Treasury Bond, 2.750%, 9/10/2017, (KRW)(d)		2,381,959
	670,000	KT Corp., 2.500%, 7/18/2026, 144A(d)		676,732
	1,125,000	Minera y Metalurgica del Boleo S.A. de CV, 2.875%, 5/07/2019, 144A(d)		1,151,511
	950,000	Shinhan Bank, 2.250%, 4/15/2020, 144A(d)		961,884
	770,000	Shinhan Bank, 3.875%, 3/24/2026, 144A(d)		814,357
	140,000	SK Telecom Co. Ltd., 6.625%, 7/20/2027, 144A(d)		190,107
	200,000	Woori Bank, 5.875%, 4/13/2021, 144A(d)		230,072
				9,861,941
		Luxembourg — 0.1%
	430,000	INEOS Group Holdings S.A., 5.750%, 2/15/2019, (EUR)		495,116
	500,000	Millicom International Cellular S.A., 4.750%, 5/22/2020, 144A		505,650
				1,000,766
		Mexico — 1.0%
	10,000,000	America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)(d)		502,327
	675,000	Banco Nacional de Comercio Exterior SNC, (fixed rate to 8/11/2021, variable rate thereafter), 3.800%, 8/11/2026, 144A		655,391
	300,000	Banco Santander Mexico S.A. Institucion de Banca Multiple Grupo Financiero Santander, 4.125%, 11/09/2022, 144A(d)		308,250
	640,000	Cemex Finance LLC, 6.000%, 4/01/2024, 144A		656,000
	300,000	Cemex SAB de CV, 4.375%, 3/05/2023, 144A, (EUR)		343,442
	505,000	Cemex SAB de CV, 5.700%, 1/11/2025, 144A		511,161
	200,000	Cemex SAB de CV, 7.750%, 4/16/2026, 144A		221,900
	800,000	Gruma SAB de CV, 4.875%, 12/01/2024(d)		856,000
	10,000,000	Grupo Televisa SAB, EMTN, 7.250%, 5/14/2043, (MXN)(d)		447,094
	1,150,000(†††)	Mexican Fixed Rate Bonds, Series M-30, 10.000%, 11/20/2036, (MXN)(d)		8,266,875
	196,000	Mexico Government International Bond, 4.000%, 3/15/2115, (EUR)(d)		208,401
	1,020,000	Mexico Government International Bond, 4.125%, 1/21/2026(d)		1,097,010
	780,000	Petroleos Mexicanos, 4.250%, 1/15/2025(d)		752,622
	625,000	Petroleos Mexicanos, 5.625%, 1/23/2046(d)		545,188
	135,000(†††)	Petroleos Mexicanos, 7.470%, 11/12/2026, (MXN)(d)		603,866
				15,975,527
		Morocco — 0.1%
	965,000	OCP S.A., 4.500%, 10/22/2025, 144A(d)		977,950
	590,000	OCP S.A., 6.875%, 4/25/2044, 144A		668,422
				1,646,372
		Netherlands — 0.1%
	870,000	Cooperatieve Rabobank UA, 4.375%, 8/04/2025(d)		917,546
	675,000	ING Bank NV, 1.650%, 8/15/2019, 144A(d)		674,407

See accompanying notes to financial statements.

|  28

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Netherlands — continued
$	525,000	Ziggo Secured Finance BV, 5.500%, 1/15/2027, 144A	$	524,344
				2,116,297
		New Zealand — 0.4%
	2,899,580	New Zealand Government Bond, 3.000%, 9/20/2030, (NZD)(d)		2,463,829
	2,340,000	New Zealand Government Bond, 5.000%, 3/15/2019, (NZD)(d)		1,829,024
	2,590,000	New Zealand Government Bond, 5.500%, 4/15/2023, (NZD)(d)		2,281,662
				6,574,515
		Norway — 0.2%
	13,275,000	Norway Government Bond, 2.000%, 5/24/2023, 144A, (NOK)(d)		1,763,812
	13,760,000	Norway Government Bond, 4.500%, 5/22/2019, 144A, (NOK)(d)		1,889,646
				3,653,458
		Panama — 0.1%
	680,000	Banco Latinoamericano de Comercio Exterior S.A., 3.250%, 5/07/2020, 144A(d)		695,300
	300,000	Banco Latinoamericano de Comercio Exterior S.A., 3.750%, 4/04/2017, 144A(d)		301,875
				997,175
		Paraguay — 0.1%
	800,000	Republic of Paraguay, 5.000%, 4/15/2026, 144A		866,000
		Peru — 0.2%
	580,000	Southern Copper Corp., 3.875%, 4/23/2025(d)		582,318
	1,050,000	Transportadora de Gas del Peru S.A., 4.250%, 4/30/2028, 144A(d)		1,091,055
	1,050,000	Union Andina de Cementos SAA, 5.875%, 10/30/2021, 144A		1,102,395
				2,775,768
		Philippines — 0.0%
	175,000	PLDT, Inc., EMTN, 8.350%, 3/06/2017(d)		178,727
		Poland — 0.4%
	17,080,000	Poland Government Bond, 4.000%, 10/25/2023, (PLN)(d)		4,847,202
	3,210,000	Poland Government Bond, 5.500%, 10/25/2019, (PLN)(d)		927,684
				5,774,886
		Portugal — 0.0%
	400,000	EDP Finance BV, 4.125%, 1/15/2020, 144A		414,600
	225,000	EDP Finance BV, EMTN, 2.000%, 4/22/2025, (EUR)		255,597
				670,197
		Romania — 0.0%
	410,000	Romanian Government International Bond, 2.875%, 5/26/2028, 144A, (EUR)		498,589
		Russia — 0.1%
	63,000,000	Russian Federal Bond - OFZ, Series 6208, 7.500%, 2/27/2019, (RUB)		983,701
		Singapore — 0.2%
	495,000	BOC Aviation Ltd., 3.000%, 3/30/2020(d)		507,801
	2,000,000	DBS Bank Ltd., (fixed rate to 9/21/2017, variable rate thereafter), 3.625%, 9/21/2022, 144A(d)		2,033,200
				2,541,001

See accompanying notes to financial statements.

29  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		South Africa — 0.2%
$	930,000	MTN (Mauritius) Investments Ltd., 4.755%, 11/11/2024, 144A	$	899,775
	500,000	Myriad International Holdings BV, 6.000%, 7/18/2020, 144A		550,100
	15,980,000	South Africa Government International Bond, Series R213, 7.000%, 2/28/2031, (ZAR)(d)		972,725
				2,422,600
		Spain — 0.4%
	800,000	Gas Natural Fenosa Finance BV, (fixed rate to 4/24/2024, variable rate thereafter), 3.375% , (EUR)(e)		856,217
	725,000	Spain Government International Bond, 0.750%, 7/30/2021, (EUR)(d)		842,233
	430,000	Spain Government International Bond, 1.600%, 4/30/2025, 144A, (EUR)(d)		518,248
	1,825,000	Spain Government International Bond, 4.300%, 10/31/2019, 144A, (EUR)(d)		2,327,185
	800,000	Spain Government International Bond, 4.400%, 10/31/2023, 144A, (EUR)(d)		1,147,325
				5,691,208
		Supranationals — 0.5%
	2,075,000	Asian Development Bank, GMTN, 0.875%, 10/05/2018		2,072,821
	855,000	Banque Quest Africaine de Developpement, 5.500%, 5/06/2021, 144A(d)		909,447
	840,000	Central American Bank for Economic Integration, 3.875%, 2/09/2017, 144A(d)		846,300
	1,115,000	Corporacion Andina de Fomento, 4.375%, 6/15/2022(d)		1,236,814
	1,140,000	International Bank for Reconstruction & Development, 2.500%, 3/12/2020, (AUD)(d)		885,970
	70,000,000	International Finance Corp., 7.800%, 6/03/2019, (INR)(d)		1,092,864
				7,044,216
		Sweden — 0.0%
	2,450,000	Sweden Government Bond, 5.000%, 12/01/2020, (SEK)(d)		352,387
		Switzerland — 0.1%
	1,075,000	Glencore Finance Canada Ltd., 5.550%, 10/25/2042, 144A(d)		1,038,408
	200,000	LafargeHolcim Finance U.S. LLC, 3.500%, 9/22/2026, 144A		203,918
				1,242,326
		Thailand — 0.1%
	1,010,000	Siam Commercial Bank PCL (The), 3.500%, 4/07/2019, 144A(d)		1,052,071
	950,000	Thai Oil PCL, 3.625%, 1/23/2023, 144A(d)		999,052
				2,051,123
		Turkey — 0.1%
	800,000	Arcelik AS, 5.000%, 4/03/2023, 144A		789,600
		United Arab Emirates — 0.1%
	850,000	DP World Ltd., 3.250%, 5/18/2020, 144A		876,562
	600,000	Dubai Electricity & Water Authority, 6.375%, 10/21/2016, 144A(d)		601,373
				1,477,935
		United Kingdom — 0.6%
	600,000	Anglo American Capital PLC, 2.625%, 9/27/2017, 144A		598,500
	1,100,000	Barclays PLC, (fixed rate to 9/15/2019, variable rate thereafter), 6.625% (e)		1,003,750

See accompanying notes to financial statements.

|  30

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		United Kingdom — continued
	400,000	Barclays PLC, (fixed rate to 9/15/2019, variable rate thereafter), 7.000%, (GBP)(e)	$	483,137
	260,000	Delphi Automotive PLC, 1.600%, 9/15/2028, (EUR)		296,853
	565,000	HSBC Holdings PLC, (fixed rate to 6/01/2021, variable rate thereafter), 6.875%(e)		587,600
	295,000	HSBC Holdings PLC, EMTN, 5.750%, 12/20/2027, (GBP)(d)		454,099
	150,000	Imperial Brands Finance PLC, EMTN, 6.250%, 12/04/2018, (GBP)		215,888
	400,000	Lloyds Banking Group PLC, 4.500%, 11/04/2024(d)		414,145
	1,020,000	Lloyds Banking Group PLC, (fixed rate to 6/27/2024, variable rate thereafter), 7.500%(e)		1,053,354
	400,000	Old Mutual PLC, EMTN, 8.000%, 6/03/2021, (GBP)		591,044
	1,130,000	Royal Bank of Scotland Group PLC, 6.000%, 12/19/2023(d)		1,177,706
	950,000	Royal Bank of Scotland Group PLC, (fixed rate to 8/10/2020, variable rate thereafter), 7.500% (e)		871,502
	350,000	Santander UK Group Holdings PLC, 4.750%, 9/15/2025, 144A(d)		350,393
	250,000	Standard Chartered PLC, EMTN, (fixed rate to 10/21/2020, variable rate thereafter), 4.000%, 10/21/2025, (EUR)(d)		288,036
	600,000	United Kingdom Gilt, 2.000%, 9/07/2025, (GBP)(d)		867,738
	130,000	Virgin Media Finance PLC, 4.500%, 1/15/2025, 144A, (EUR)		144,264
	100,000	WPP PLC, 6.000%, 4/04/2017, (GBP)(d)		132,898
				9,530,907
		United States — 18.2%
	15,000	21st Century Fox America, Inc., 6.400%, 12/15/2035		19,228
	9,890,000	AbbVie, Inc., 2.500%, 5/14/2020		10,082,598
	45,000	AECOM, 5.750%, 10/15/2022		47,264
	45,000	AECOM, 5.875%, 10/15/2024		48,038
	1,745,000	AES Corp. (The), 4.875%, 5/15/2023		1,771,175
	1,000,000	Alcoa, Inc., 5.125%, 10/01/2024		1,063,750
	305,000	Alcoa, Inc., 5.400%, 4/15/2021		326,350
	975,000	Alcoa, Inc., 5.900%, 2/01/2027		1,043,250
	3,073,000	Alcoa, Inc., 5.950%, 2/01/2037		3,089,901
	4,655,000	Ally Financial, Inc., 3.750%, 11/18/2019		4,730,644
	3,345,000	Ally Financial, Inc., 4.125%, 2/13/2022		3,382,631
	745,000	Ally Financial, Inc., 5.125%, 9/30/2024		789,700
	129,000	Ally Financial, Inc., 8.000%, 12/31/2018		142,223
	1,728,000	Ally Financial, Inc., 8.000%, 11/01/2031		2,129,760
	2,686,371	American Airlines Pass Through Certificates, Series 2016-1, Class B, 5.250%, 7/15/2025		2,817,332
	170,098	American Airlines Pass Through Trust, Series 2013-1, Class A, 4.000%, 1/15/2027		180,911
	6,190,000	Anadarko Petroleum Corp., 3.450%, 7/15/2024		6,105,828
	300,000	Anadarko Petroleum Corp., 4.500%, 7/15/2044		275,249
	400,000	Antero Resources Corp., 5.125%, 12/01/2022		403,000
	175,000	Antero Resources Corp., 5.375%, 11/01/2021		176,969
	3,060,000	Antero Resources Corp., 5.625%, 6/01/2023		3,117,375
	1,510,000	AT&T, Inc., 3.400%, 5/15/2025		1,551,386
	3,960,000	AT&T, Inc., 4.125%, 2/17/2026		4,279,180

See accompanying notes to financial statements.

31  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	6,901	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 1/02/2018(c)	$	7,022
	495,000	Atrium Windows & Doors, Inc., 7.750%, 5/01/2019, 144A		444,881
	925,000	Aviation Capital Group Corp., 6.750%, 4/06/2021, 144A		1,086,875
	95,000	Avon Products, Inc., 8.950%, 3/15/2043		77,663
	200,000	Bank of America Corp., 5.490%, 3/15/2019		216,089
	2,700,000	Bank of America Corp., 6.110%, 1/29/2037		3,299,932
	115,000	Bank of America Corp., MTN, 4.250%, 10/22/2026		122,008
	50,000	Beazer Homes USA, Inc., 7.250%, 2/01/2023		49,750
	15,000	Boston Scientific Corp., 5.125%, 1/12/2017		15,157
	71,000	California Resources Corp., 5.500%, 9/15/2021		37,630
	10,000	California Resources Corp., 6.000%, 11/15/2024		4,775
	1,995,000	CenturyLink, Inc., 6.450%, 6/15/2021		2,137,144
	510,000	CenturyLink, Inc., 7.650%, 3/15/2042		439,875
	55,000	CenturyLink, Inc., Series G, 6.875%, 1/15/2028		53,006
	605,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		526,350
	1,025,000	Chemours Co. (The), 6.625%, 5/15/2023		999,375
	190,000	Chemours Co. (The), 7.000%, 5/15/2025		186,675
	3,210,000	Chesapeake Energy Corp., 4.875%, 4/15/2022		2,704,425
	315,000	Chesapeake Energy Corp., 5.750%, 3/15/2023		267,750
	495,000	Chesapeake Energy Corp., 6.125%, 2/15/2021		454,162
	190,000	Chesapeake Energy Corp., 6.625%, 8/15/2020		178,838
	95,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		88,825
	100,000	Chesapeake Energy Corp., 7.250%, 12/15/2018		101,500
	7,030,000	Chesapeake Energy Corp., 8.000%, 12/15/2022, 144A		7,126,662
	780,000	Chevron Corp., 2.419%, 11/17/2020(d)		802,003
	1,635,000	Cimarex Energy Co., 4.375%, 6/01/2024		1,707,666
	525,000	Cincinnati Bell, Inc., 7.000%, 7/15/2024, 144A		538,125
	500,000	Citizens Financial Group, Inc., 4.300%, 12/03/2025		524,636
	2,913,000	Clear Channel Worldwide Holdings, Inc., 7.625%, 3/15/2020		2,887,511
	155,000	Cleaver-Brooks, Inc., 8.750%, 12/15/2019, 144A		162,363
	480,000	Consolidated Communications, Inc., 6.500%, 10/01/2022		465,600
	265,000	Constellation Brands, Inc., 4.750%, 11/15/2024		286,862
	1,005,000	Continental Airlines Pass Through Certificates, Series 2012-3, Class C, 6.125%, 4/29/2018		1,050,225
	75,986	Continental Airlines Pass Through Trust, Series 1999-1, Class B, 6.795%, 2/02/2020		78,691
	255,000	Continental Resources, Inc., 3.800%, 6/01/2024		233,325
	50,000	Continental Resources, Inc., 4.500%, 4/15/2023		48,000
	375,000	Cox Communications, Inc., 4.800%, 2/01/2035, 144A		371,598
	1,335,000	CSC Holdings LLC, 10.875%, 10/15/2025, 144A		1,563,619
	155,000	Cummins, Inc., 5.650%, 3/01/2098		173,239
	160,460	Delta Air Lines Pass Through Trust, Series 2007-1, Class B, 8.021%, 2/10/2024		182,731
	1,200,000	Devon Energy Corp., 3.250%, 5/15/2022		1,191,421
	990,000	Devon Energy Corp., 5.850%, 12/15/2025		1,114,125
	475,000	Diamond 1 Finance Corp./Diamond 2 Finance Corp., 6.020%, 6/15/2026, 144A		520,744

See accompanying notes to financial statements.

|  32

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	42,000	Dillard’s, Inc., 6.625%, 1/15/2018	$	44,360
	50,000	Dillard’s, Inc., 7.000%, 12/01/2028		57,247
	8,000	Dillard’s, Inc., 7.750%, 7/15/2026		9,210
	300,000	Discovery Communications LLC, 1.900%, 3/19/2027, (EUR)		331,589
	395,000	DISH DBS Corp., 5.000%, 3/15/2023		384,137
	1,495,000	DISH DBS Corp., 5.875%, 11/15/2024		1,476,312
	315,000	DPL, Inc., 6.750%, 10/01/2019		326,812
	310,000	DR Horton, Inc., 4.375%, 9/15/2022		333,250
	235,000	DS Services of America, Inc., 10.000%, 9/01/2021, 144A		262,025
	600,000	Enbridge Energy Partners LP, 5.875%, 10/15/2025		689,788
	575,000	Enbridge Energy Partners LP, 7.375%, 10/15/2045		727,082
	410,000	FedEx Corp., 1.000%, 1/11/2023, (EUR)		474,446
	150,000	Foot Locker, Inc., 8.500%, 1/15/2022		177,000
	25,000	Ford Motor Co., 6.375%, 2/01/2029		30,639
	50,000	Ford Motor Co., 6.625%, 2/15/2028		59,912
	2,105,000	Ford Motor Co., 6.625%, 10/01/2028		2,644,413
	40,000	Ford Motor Co., 7.125%, 11/15/2025		49,892
	530,000	Ford Motor Co., 7.400%, 11/01/2046		765,318
	5,000	Ford Motor Co., 7.500%, 8/01/2026		6,391
	5,000,000	Ford Motor Credit Co. LLC, 2.459%, 3/27/2020		5,046,645
	1,600,000	Ford Motor Credit Co. LLC, 3.588%, 6/02/2020, (AUD)(d)		1,248,402
	1,000,000	Ford Motor Credit Co. LLC, 5.000%, 5/15/2018		1,049,654
	905,000	Forethought Financial Group, Inc., 8.625%, 4/15/2021, 144A(f)(g)		1,040,533
	2,370,000	Freeport-McMoRan, Inc., 3.875%, 3/15/2023(d)		2,126,885
	210,000	Freeport-McMoRan, Inc., 5.400%, 11/14/2034		174,300
	2,475,000	Freeport-McMoRan, Inc., 5.450%, 3/15/2043		1,986,187
	865,000	Frontier Communications Corp., 6.875%, 1/15/2025		765,525
	560,000	Frontier Communications Corp., 11.000%, 9/15/2025		584,500
	205,000	FTS International, Inc., 6.250%, 5/01/2022		78,413
	275,000	Gates Global LLC/Gates Global Co., 6.000%, 7/15/2022, 144A		261,250
	50,000	General Electric Co., GMTN, 3.100%, 1/09/2023		53,118
	740,000	General Electric Co., Series D, (fixed rate to 1/21/2021, variable rate thereafter), 5.000% (d)(e)		786,953
	115,000	General Motors Co., 5.200%, 4/01/2045		119,621
	195,000	General Motors Co., 6.750%, 4/01/2046		244,467
	5,000,000	General Motors Financial Co., Inc., 2.400%, 4/10/2018		5,036,090
	240,000	General Motors Financial Co., Inc., 3.450%, 4/10/2022		243,434
	925,000	General Motors Financial Co., Inc., 5.250%, 3/01/2026		1,015,913
	195,000	Genworth Holdings, Inc., 4.800%, 2/15/2024		160,388
	500,000	Genworth Holdings, Inc., 4.900%, 8/15/2023		416,250
	215,000	Genworth Holdings, Inc., 6.500%, 6/15/2034		175,225
	3,435,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		4,649,736
	105,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		139,952
	180,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		257,588
	315,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		498,300
	800,000	Goldman Sachs Group, Inc. (The), 3.375%, 2/01/2018, (CAD)(d)		624,298
	2,295,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		2,922,246

See accompanying notes to financial statements.

33  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	3,045,000	Goodyear Tire & Rubber Co. (The), 7.000%, 5/15/2022	$	3,227,700
	165,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		180,263
	70,000	GS Mortgage Securities Trust, Series 2007-GG10, Class AM, 5.988%, 8/10/2045(h)		67,377
	1,000,000	HCA Holdings, Inc., 6.250%, 2/15/2021		1,085,000
	20,000	HCA, Inc., 4.750%, 5/01/2023		20,850
	225,000	HCA, Inc., 7.050%, 12/01/2027		239,344
	820,000	HCA, Inc., 7.500%, 11/06/2033		888,675
	1,500,000	HCA, Inc., 7.690%, 6/15/2025		1,685,865
	395,000	HCA, Inc., 8.360%, 4/15/2024		458,627
	195,000	HCA, Inc., MTN, 7.580%, 9/15/2025		219,863
	75,000	HCA, Inc., MTN, 7.750%, 7/15/2036		81,281
	855,000	Hecla Mining Co., 6.875%, 5/01/2021		858,206
	585,000	Hercules, Inc., 6.500%, 6/30/2029		526,500
	490,000	Hewlett Packard Enterprise Co., 6.350%, 10/15/2045, 144A		505,652
	310,000	Hexion, Inc., 7.875%, 2/15/2023(c)(f)		111,600
	470,000	Highwoods Realty LP, 5.850%, 3/15/2017		478,446
	485,000	Huntington Ingalls Industries, Inc., 5.000%, 11/15/2025, 144A		512,887
	955,000	Hyundai Capital America, 2.750%, 9/27/2026, 144A		942,671
	450,000	International Lease Finance Corp., 4.625%, 4/15/2021		471,375
	1,250,000	International Lease Finance Corp., 6.250%, 5/15/2019		1,354,687
	745,000	INVISTA Finance LLC, 4.250%, 10/15/2019, 144A		741,335
	145,000	iStar, Inc., 4.875%, 7/01/2018		145,725
	3,460,000	iStar, Inc., 5.000%, 7/01/2019		3,450,935
	70,000	iStar, Inc., 5.850%, 3/15/2017		70,836
	200,000	iStar, Inc., 7.125%, 2/15/2018		208,500
	48,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		41,280
	5,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		4,125
	665,000	Jefferies Group LLC, 5.125%, 4/13/2018		694,269
	30,000	Jefferies Group LLC, 5.125%, 1/20/2023		31,962
	1,070,000	Jefferies Group LLC, 6.250%, 1/15/2036		1,115,236
	685,000	Jefferies Group LLC, 6.450%, 6/08/2027		775,488
	1,410,000	Jefferies Group LLC, 6.875%, 4/15/2021		1,645,019
	15,000	K. Hovnanian Enterprises, Inc., 5.000%, 11/01/2021(f)(g)		10,500
	110,000	K. Hovnanian Enterprises, Inc., 7.000%, 1/15/2019, 144A		74,525
	165,000	K. Hovnanian Enterprises, Inc., 8.000%, 11/01/2019, 144A		99,825
	1,665,000	KB Home, 8.000%, 3/15/2020		1,854,394
	2,805,000	Kraton Polymers LLC/Kraton Polymers Capital Corp., 10.500%, 4/15/2023, 144A		3,183,675
	190,000	Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 7.375%, 10/01/2017		191,425
	140,000	Level 3 Communications, Inc., 5.750%, 12/01/2022		146,300
	330,000	Level 3 Financing, Inc., 5.125%, 5/01/2023		339,900
	760,000	Level 3 Financing, Inc., 5.375%, 5/01/2025		792,300
	20,000	Macy’s Retail Holdings, Inc., 4.500%, 12/15/2034		18,781
	165,000	Masco Corp., 6.500%, 8/15/2032		181,500
	865,000	Masco Corp., 7.750%, 8/01/2029		1,033,675

See accompanying notes to financial statements.

|  34

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	410,000	Micron Technology, Inc., 5.250%, 8/01/2023, 144A	$	404,875
	965,000	Micron Technology, Inc., 5.500%, 2/01/2025		945,700
	1,230,000	Micron Technology, Inc., 5.625%, 1/15/2026, 144A		1,177,725
	1,430,000	Midas Intermediate Holdco II LLC/Midas Intermediate Holdco II Finance, Inc., 7.875%, 10/01/2022, 144A		1,455,025
	825,000	Morgan Stanley, 2.125%, 4/25/2018		831,934
	220,000	Morgan Stanley, 2.500%, 1/24/2019		224,171
	450,000	Morgan Stanley, 3.750%, 2/25/2023		477,941
	725,000	Morgan Stanley, 5.750%, 1/25/2021		826,453
	3,150,000	Morgan Stanley, MTN, 4.100%, 5/22/2023		3,330,372
	600,000	Morgan Stanley, MTN, 6.250%, 8/09/2026		752,258
	100,000	Morgan Stanley, Series F, MTN, 1.129%, 10/18/2016(h)		100,014
	25,000	MPLX LP, 4.500%, 7/15/2023		25,486
	95,000	MPLX LP, 4.875%, 6/01/2025		98,162
	3,000,000	Navient Corp., 5.000%, 10/26/2020		2,958,750
	95,000	Navient Corp., 5.875%, 10/25/2024		86,450
	175,000	Navient LLC, 4.875%, 6/17/2019		174,344
	915,000	Navient LLC, 5.500%, 1/25/2023		839,512
	1,600(††††)	Navient LLC, 6.000%, 12/15/2043		36,760
	40,000	Navient LLC, MTN, 4.625%, 9/25/2017		40,600
	60,000	Navient LLC, MTN, 5.500%, 1/15/2019		60,900
	1,130,000	Navient LLC, MTN, 7.250%, 1/25/2022		1,152,600
	10,000	Navient LLC, Series A, MTN, 5.000%, 6/15/2018		10,000
	2,560,000	Navient LLC, Series A, MTN, 5.625%, 8/01/2033(f)(g)		2,035,200
	360,000	Navient LLC, Series A, MTN, 8.450%, 6/15/2018		387,000
	4,457,000	New Albertson’s, Inc., 7.450%, 8/01/2029		4,367,860
	525,000	New Albertson’s, Inc., 7.750%, 6/15/2026		523,031
	5,710,000	New Albertson’s, Inc., 8.000%, 5/01/2031		5,631,487
	2,110,000	New Albertson’s, Inc., 8.700%, 5/01/2030		2,141,650
	1,265,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		1,163,800
	365,000	Newell Brands, Inc., 4.000%, 12/01/2024		387,764
	65,000	Newfield Exploration Co., 5.625%, 7/01/2024		66,625
	20,000	NGPL PipeCo LLC, 7.768%, 12/15/2037, 144A		21,700
	1,019,000	Noble Energy, Inc., 5.625%, 5/01/2021		1,064,926
	135,000	Oasis Petroleum, Inc., 6.875%, 3/15/2022		129,263
	220,000	Oasis Petroleum, Inc., 6.875%, 1/15/2023		210,100
	2,275,000	Oceaneering International, Inc., 4.650%, 11/15/2024		2,292,517
	420,000	Old Republic International Corp., 4.875%, 10/01/2024		454,141
	5,085,000	ONEOK Partners LP, 4.900%, 3/15/2025		5,470,072
	25,000	ONEOK Partners LP, 6.200%, 9/15/2043		27,619
	55,000	Outfront Media Capital LLC/Outfront Media Capital Corp., 5.250%, 2/15/2022		57,200
	140,000	Outfront Media Capital LLC/Outfront Media Capital Corp., 5.875%, 3/15/2025		147,000
	535,000	Owens Corning, 7.000%, 12/01/2036		675,374
	2,965,000	Owens-Brockway Glass Container, Inc., 5.375%, 1/15/2025, 144A		3,083,600
	540,000	PulteGroup, Inc., 6.000%, 2/15/2035		545,400
	785,000	PulteGroup, Inc., 6.375%, 5/15/2033		817,709

See accompanying notes to financial statements.

35  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	220,000	PulteGroup, Inc., 7.875%, 6/15/2032	$	254,100
	285,000	QEP Resources, Inc., 5.250%, 5/01/2023		280,725
	145,000	QEP Resources, Inc., 5.375%, 10/01/2022		143,913
	65,000	QEP Resources, Inc., 6.875%, 3/01/2021		67,763
	255,000	Quicken Loans, Inc., 5.750%, 5/01/2025, 144A		253,088
	1,335,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,411,762
	650,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		614,250
	400,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		412,000
	60,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		58,200
	476,000	Qwest Corp., 6.875%, 9/15/2033		474,523
	115,000	Qwest Corp., 7.250%, 9/15/2025		125,848
	37,000	R.R. Donnelley & Sons Co., 7.000%, 2/15/2022		38,388
	200,000	Rain CII Carbon LLC/CII Carbon Corp., 8.250%, 1/15/2021, 144A		195,000
	230,000	Range Resources Corp., 4.875%, 5/15/2025		220,800
	850,000	Range Resources Corp., 5.000%, 8/15/2022, 144A		845,750
	220,000	Range Resources Corp., 5.000%, 3/15/2023, 144A		215,050
	1,075,000	Regency Energy Partners LP/Regency Energy Finance Corp., 5.000%, 10/01/2022		1,134,606
	230,000	Regency Energy Partners LP/Regency Energy Finance Corp., 5.500%, 4/15/2023		237,449
	665,000	Sabine Pass Liquefaction LLC, 5.625%, 2/01/2021		702,406
	20,000	Sabine Pass Liquefaction LLC, 5.625%, 3/01/2025		21,500
	970,000	Santander Holdings USA, Inc., 2.650%, 4/17/2020(d)		975,831
	25,000	Sealed Air Corp., 4.875%, 12/01/2022, 144A		26,250
	640,000	Sealed Air Corp., 5.500%, 9/15/2025, 144A		686,400
	420,000	ServiceMaster Co. LLC (The), 7.450%, 8/15/2027		446,460
	760,000	Shearer’s Foods LLC/Chip Finance Corp., 9.000%, 11/01/2019, 144A		797,240
	425,000	Spectrum Brands, Inc., 4.000%, 10/01/2026, 144A, (EUR)		485,382
	2,675,000	Springleaf Finance Corp., 5.250%, 12/15/2019		2,731,844
	330,000	Springleaf Finance Corp., 7.750%, 10/01/2021		346,087
	130,000	Springleaf Finance Corp., 8.250%, 10/01/2023		136,500
	2,349,000	Sprint Capital Corp., 6.875%, 11/15/2028		2,205,124
	2,240,000	Sprint Capital Corp., 8.750%, 3/15/2032		2,284,800
	26,000	Sprint Communications, Inc., 6.000%, 12/01/2016		26,130
	1,720,000	Sprint Communications, Inc., 6.000%, 11/15/2022		1,595,300
	120,000	Sprint Corp., 7.125%, 6/15/2024		117,000
	2,840,000	Sprint Corp., 7.875%, 9/15/2023		2,857,750
	2,910,000	SUPERVALU, Inc., 6.750%, 6/01/2021		2,720,850
	670,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 4.125%, 11/15/2019		679,380
	175,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 5.000%, 1/15/2018		181,125
	1,365,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 6.750%, 3/15/2024		1,460,550
	520,000	Tenet Healthcare Corp., 5.000%, 3/01/2019		508,300
	100,000	Tenet Healthcare Corp., 6.750%, 6/15/2023		93,000
	1,360,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		1,118,600
	820,000	Textron, Inc., 5.950%, 9/21/2021		939,276

See accompanying notes to financial statements.

|  36

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		United States — continued
$	90,000	Time Warner Cable LLC, 4.500%, 9/15/2042	$	85,883
	565,000	Time Warner Cable LLC, 5.250%, 7/15/2042, (GBP)(d)		859,621
	85,000	Time Warner Cable LLC, 5.500%, 9/01/2041		90,730
	1,680,000	Transcontinental Gas Pipe Line Co. LLC, 7.850%, 2/01/2026, 144A		2,174,997
	171,000	TransDigm, Inc., 6.500%, 7/15/2024		179,978
	185,000	TransDigm, Inc., 6.500%, 5/15/2025		192,631
	6,665,000	TRI Pointe Group, Inc., 4.875%, 7/01/2021		6,831,625
	90,000	TRI Pointe Holdings, Inc./TRI Pointe Group, Inc., 4.375%, 6/15/2019		92,588
	5,000	TRI Pointe Holdings, Inc./TRI Pointe Group, Inc., 5.875%, 6/15/2024		5,200
	870,000	TRU Taj LLC/TRU Taj Finance, Inc., 12.000%, 8/15/2021, 144A		876,525
	8,530,000	U.S. Treasury Note, 0.375%, 10/31/2016		8,531,587
	8,520,000	U.S. Treasury Note, 0.500%, 11/30/2016		8,524,183
	370,000	U.S. Treasury Note, 0.625%, 8/31/2017(d)(i)		369,899
	10,257	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		10,270
	630,000	United Continental Holdings, Inc., 6.375%, 6/01/2018		661,500
	2,940,000	United Rentals North America, Inc., 5.500%, 7/15/2025		2,998,800
	2,635,000	United Rentals North America, Inc., 5.750%, 11/15/2024		2,733,812
	295,000	United Rentals North America, Inc., 7.625%, 4/15/2022		314,175
	1,940,000	United States Steel Corp., 6.650%, 6/01/2037		1,552,000
	690,000	United States Steel Corp., 7.375%, 4/01/2020		686,550
	770,000	United States Steel Corp., 7.500%, 3/15/2022		758,450
	111,922	US Airways Pass Through Trust, Series 2012-1A, Class A, 5.900%, 4/01/2026		128,711
	59,592	US Airways Pass Through Trust, Series 2012-1B, Class B, 8.000%, 4/01/2021		65,998
	422,020	US Airways Pass Through Trust, Series 2012-2A, Class A, 4.625%, 12/03/2026		460,001
	230,000	USG Corp., 9.500%, 1/15/2018		249,780
	25,000	Viacom, Inc., 4.375%, 3/15/2043		22,952
	180,000	Viacom, Inc., 4.850%, 12/15/2034		183,522
	395,000	Viacom, Inc., 5.250%, 4/01/2044		413,542
	145,000	Viacom, Inc., 5.850%, 9/01/2043		163,538
	1,380,000	Western Digital Corp., 7.375%, 4/01/2023, 144A		1,518,000
	60,000	Weyerhaeuser Co., 6.950%, 10/01/2027		74,592
	315,000	Weyerhaeuser Co., 7.375%, 3/15/2032		426,463
	1,060,000	Whiting Petroleum Corp., 5.000%, 3/15/2019		1,025,550
	590,000	Whiting Petroleum Corp., 5.750%, 3/15/2021		551,650
	130,000	Whiting Petroleum Corp., 6.250%, 4/01/2023		118,625
	555,000	Whiting Petroleum Corp., 6.500%, 10/01/2018		546,675
	55,000	Windstream Services LLC, 7.500%, 6/01/2022		52,800
	1,955,000	Windstream Services LLC, 7.500%, 4/01/2023		1,867,025
	1,105,000	Windstream Services LLC, 7.750%, 10/01/2021		1,102,237
	500,000	WPX Energy, Inc., 5.250%, 1/15/2017		503,750
	125,000	Xerox Corp., 6.750%, 2/01/2017		126,969
				280,397,424
		Total Non-Convertible Bonds (Identified Cost $446,354,695)		472,467,061

See accompanying notes to financial statements.

37  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
	Convertible Bonds — 1.0%
		United States — 1.0%
$	650,000	Brocade Communications Systems, Inc., 1.375%, 1/01/2020	$	641,469
	10,000	CalAmp Corp., 1.625%, 5/15/2020		9,250
	190,000	CalAtlantic Group, Inc., 0.250%, 6/01/2019		175,988
	68,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		67,575
	185,000	Ciena Corp., 3.750%, 10/15/2018, 144A		234,025
	2,290,000	Dish Network Corp., 3.375%, 8/15/2026, 144A		2,507,550
	530,000	Hologic, Inc., (accretes to principal after 3/01/2018), 2.000%, 3/01/2042(j)		722,125
	275,000	Iconix Brand Group, Inc., 1.500%, 3/15/2018		237,188
	1,125,000	Intel Corp., 3.250%, 8/01/2039		2,057,344
	1,000,000	KB Home, 1.375%, 2/01/2019		972,500
	1,690,000	Nuance Communications, Inc., 1.000%, 12/15/2035, 144A		1,470,300
	2,200,000	Old Republic International Corp., 3.750%, 3/15/2018		2,641,375
	1,450,000	Priceline Group, Inc. (The), 0.900%, 9/15/2021		1,556,937
	1,580,000	Rovi Corp., 0.500%, 3/01/2020		1,574,517
	40,000	RPM International, Inc., 2.250%, 12/15/2020		47,925
	90,000	Trinity Industries, Inc., 3.875%, 6/01/2036		107,550
		Total Convertible Bonds (Identified Cost $12,795,697)		15,023,618
	Municipals — 0.0%
		United States — 0.0%
	155,000	State of Illinois, 5.100%, 6/01/2033		149,420
	130,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046		111,654
		Total Municipals (Identified Cost $251,681)		261,074
		Total Bonds and Notes (Identified Cost $459,402,073)		487,751,753
	Senior Loans — 0.3%
		United States — 0.3%
	4,316	Dex Media, Inc., Term Loan, 11.000%, 7/29/2021(h)		4,111
	1,809,375	Fairpoint Communications, Inc., Refi Term Loan, 7.500%, 2/14/2019(h)		1,808,398
	1,065,000	Flying Fortress, Inc., New Term Loan, 3.588%, 4/30/2020(h)		1,070,858
	444,001	PowerTeam Services LLC, 1st Lien Term Loan, 4.250%, 5/06/2020(h)		442,336
	120,000	PowerTeam Services LLC, 2nd Lien Term Loan, 8.250%, 11/06/2020(h)		119,400
	837,245	Supervalu, Inc., Refi Term Loan B, 5.500%, 3/21/2019(h)		838,099
		Total Senior Loans (Identified Cost $4,280,345)		4,283,202
Shares
	Preferred Stocks — 0.0%
		United States — 0.0%
	2,585	Alcoa, Inc., Series 1, 5.375%		84,504

See accompanying notes to financial statements.

|  38

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Shares		Description	Value (†)
		United States — continued
	460	Chesapeake Energy Corp., 5.000%(b)	$	19,723
	40	Chesapeake Energy Corp., 5.750%(b)		20,825
	736	Chesapeake Energy Corp., 5.750%(b)		389,160
	84	Chesapeake Energy Corp., Series A, 5.750% 144A(b)		43,732
	2,794	El Paso Energy Capital Trust I, 4.750%		139,700
		Total Preferred Stocks (Identified Cost $703,097)		697,644
	Warrants — 0.0%
	2,475	Halcon Resources Corp., Expiration on 9/9/2020 at $14.04(b)(c) (Identified Cost $0)		3,776
Principal Amount (‡)
	Short-Term Investments — 2.1%
$	31,962,491	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $31,962,572 on 10/03/2016 collateralized by $30,225,000 U.S. Treasury Note, 2.500% due 8/15/2023 valued at $32,605,219 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $31,962,491)		31,962,491
		Total Investments — 99.5% (Identified Cost $1,352,352,627)(a)		1,531,214,106
		Other assets less liabilities — 0.5%		7,789,952
		Net Assets — 100.0%	$	1,539,004,058
	(‡)	Principal Amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 1,000.
	(†††)	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, 2016, the net unrealized appreciation on investments based on a cost of $1,350,922,765 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	$	215,979,568
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(35,688,227	)
		Net unrealized appreciation	$	180,291,341
	(b)	Non-income producing security.
	(c)	Fair valued by the Fund’s adviser. At September 30, 2016, the value of these securities amounted to $123,730 or less than 0.1% of net assets. See Note 2 of Notes to Financial Statements.
	(d)	Security (or a portion thereof) has been designated to cover the Fund’s obligations under open derivative contracts.

See accompanying notes to financial statements.

39  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

(e)	Perpetual bond with no specified maturity date.
(f)	Illiquid security. (Unaudited)
(g)	Securities classified as fair valued pursuant to the Fund’s pricing policies and procedures. At September 30, 2016, the value of these securities amounted to $3,086,233 or 0.2% of net assets. See Note 2 of Notes to Financial Statements.
(h)	Variable rate security. Rate as of September 30, 2016 is disclosed.
(i)	Security (or a portion thereof) has been pledged as collateral for open derivative contracts.
(j)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2016, the value of Rule 144A holdings amounted to $120,137,536 or 7.8% 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 may be significantly influenced by trading on exchanges not located in the United States.
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MTN	Medium Term Note
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CLP	Chilean Peso
COP	Colombian Peso
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
INR	Indian Rupee
KRW	South Korean Won
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar
PLN	Polish Zloty
RUB	New Russian Ruble
SEK	Swedish Krona
ZAR	South African Rand

See accompanying notes to financial statements.

|  40

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

At September 30, 2016, the Fund had the following open forward foreign currency contracts:

Contract to Buy/Sell	Delivery Date		Currency	Units of Currency		Notional Value		Unrealized Appreciation (Depreciation)
Sell1		12/21/2016	Australian Dollar		3,428,000	$	2,619,048	$	(61,876	)
Buy1		12/21/2016	British Pound		2,370,000		3,076,838		(56,930	)
Sell1		12/21/2016	Canadian Dollar		7,245,000		5,525,473		30,687
Sell1		12/21/2016	Canadian Dollar		8,000,000		6,101,281		(9,524	)
Buy2		12/21/2016	Euro		850,000		958,297		1,176
Buy2		12/21/2016	Euro		36,370,000		41,003,853		(5,217	)
Sell2		12/21/2016	Euro		620,000		698,993		(239	)
Sell1		12/21/2016	Indonesian Rupiah		39,600,000,000		2,998,788		(33,607	)
Buy1		12/21/2016	Japanese Yen		2,486,500,000		24,605,424		230,841
Sell3		12/21/2016	Mexican Peso		117,600,000		6,012,969		332,777
Sell1		12/21/2016	New Zealand Dollar		8,162,000		5,925,324		(4,446	)
Sell3		12/21/2016	Norwegian Krone		4,200,000		525,467		(12,029	)
Sell4		12/21/2016	Polish Zloty		14,420,000		3,765,440		3,313
Sell3		12/21/2016	South African Rand		13,500,000		969,033		(49,726	)
Sell3		12/21/2016	Swedish Krona		3,100,000		362,791		4,407
Total								$	369,607

At September 30, 2016, the Fund had the following open forward cross currency contracts:

Settlement Date	Deliver/Units of Currency			Receive/Units of Currency				Unrealized Appreciation (Depreciation)
12/21/2016		Norwegian Krone	14,180,000		Euro	1	1,526,810	$	(52,739	)

¹ Counterparty is Credit Suisse International

² Counterparty is Morgan Stanley & Co.

³ Counterparty is UBS AG

⁴ Counterparty is Citibank N.A.

See accompanying notes to financial statements.

41  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Global Equity and Income Fund – (continued)

Industry Summary at September 30, 2016

Internet Software & Services	9.2	%
Treasuries	5.5
Aerospace & Defense	5.1
Capital Markets	5.0
Insurance	4.5
Pharmaceuticals	4.1
Chemicals	3.7
Banking	3.7
Specialty Retail	3.5
Media	3.0
IT Services	2.9
Internet & Direct Marketing Retail	2.8
Banks	2.5
Beverages	2.2
Food Products	2.2
Other Investments, less than 2% each	37.5
Short-Term Investments	2.1
Total Investments	99.5
Other assets less liabilities (including forward foreign currency contracts)	0.5
Net Assets	100.0	%

Currency Exposure Summary at September 30, 2016

United States Dollar	73.3	%
Euro	6.1
Swiss Franc	5.0
British Pound	3.2
Hong Kong Dollar	2.4
Canadian Dollar	2.0
Indian Rupee	2.0
Other, less than 2% each	5.5
Total Investments	99.5
Other assets less liabilities (including forward foreign currency contracts)	0.5
Net Assets	100.0	%

See accompanying notes to financial statements.

|  42

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Growth Fund

Shares		Description	Value (†)
	Common Stocks — 98.3% of Net Assets
		Air Freight & Logistics — 5.8%
	2,583,164	Expeditors International of Washington, Inc.	$	133,084,609
	1,104,940	United Parcel Service, Inc., Class B		120,836,239
				253,920,848
		Beverages — 8.1%
	3,414,551	Coca-Cola Co. (The)		144,503,798
	1,266,142	Monster Beverage Corp.(b)		185,882,307
	443,291	SABMiller PLC, Sponsored ADR		25,750,774
				356,136,879
		Biotechnology — 4.3%
	598,438	Amgen, Inc.		99,825,443
	226,065	Regeneron Pharmaceuticals, Inc.(b)		90,882,651
				190,708,094
		Capital Markets — 4.8%
	519,543	FactSet Research Systems, Inc.		84,217,920
	170,519	Greenhill & Co., Inc.		4,019,133
	2,678,293	SEI Investments Co.		122,156,944
				210,393,997
		Communications Equipment — 5.1%
	7,017,264	Cisco Systems, Inc.		222,587,614
		Consumer Finance — 1.3%
	876,631	American Express Co.		56,139,449
		Energy Equipment & Services — 2.5%
	1,384,165	Schlumberger Ltd.		108,850,736
		Food Products — 3.7%
	11,048,803	Danone, Sponsored ADR		164,074,724
		Health Care Equipment & Supplies — 2.6%
	1,176,628	Varian Medical Systems, Inc.(b)		117,109,785
		Health Care Technology — 2.6%
	1,845,161	Cerner Corp.(b)		113,938,692
		Hotels, Restaurants & Leisure — 2.6%
	1,267,141	Yum! Brands, Inc.		115,069,074
		Household Products — 3.5%
	1,713,557	Procter & Gamble Co. (The)		153,791,741
		Internet & Direct Marketing Retail — 7.3%
	381,585	Amazon.com, Inc.(b)		319,504,936
		Internet Software & Services — 16.2%
	2,049,871	Alibaba Group Holding Ltd., Sponsored ADR(b)		216,855,853
	146,521	Alphabet, Inc., Class C(b)		113,889,308
	145,961	Alphabet, Inc., Class A(b)		117,361,402
	2,051,562	Facebook, Inc., Class A(b)		263,153,858
				711,260,421

See accompanying notes to financial statements.

43  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Growth Fund – (continued)

Shares		Description	Value (†)
		IT Services — 5.7%
	434,095	Automatic Data Processing, Inc.	$	38,287,179
	2,554,796	Visa, Inc., Class A		211,281,629
				249,568,808
		Machinery — 1.8%
	918,625	Deere & Co.		78,404,644
		Pharmaceuticals — 6.7%
	1,025,390	Merck & Co., Inc.		63,994,590
	1,269,385	Novartis AG, Sponsored ADR		100,230,640
	3,137,955	Novo Nordisk AS, Sponsored ADR		130,507,548
				294,732,778
		Semiconductors & Semiconductor Equipment — 4.9%
	292,992	Analog Devices, Inc.		18,883,334
	2,876,024	QUALCOMM, Inc.		197,007,644
				215,890,978
		Software — 8.8%
	1,648,712	Autodesk, Inc.(b)		119,251,339
	1,745,555	Microsoft Corp.		100,543,968
	4,295,386	Oracle Corp.		168,722,762
				388,518,069
		Total Common Stocks (Identified Cost $3,772,884,348)		4,320,602,267
Principal Amount
	Short-Term Investments — 2.7%
$	115,998,857	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $115,999,147 on 10/03/2016 collateralized by $109,685,000 U.S. Treasury Note, 2.500% due 8/15/2023 valued at $118,322,694 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $115,998,857)		115,998,857
		Total Investments — 101.0% (Identified Cost $3,888,883,205)(a)		4,436,601,124
		Other assets less liabilities — (1.0)%		(42,088,297	)
		Net Assets — 100.0%	$	4,394,512,827

See accompanying notes to financial statements.

|  44

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Growth Fund – (continued)

(†)	See Note 2 of Notes to Financial Statements.
(a)	Federal Tax Information:
	At September 30, 2016, the net unrealized appreciation on investments based on a cost of $3,889,923,543 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	$	592,453,674
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(45,776,093	)
	Net unrealized appreciation	$	546,677,581
(b)	Non-income producing security.
ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.

Industry Summary at September 30, 2016

Internet Software & Services	16.2	%
Software	8.8
Beverages	8.1
Internet & Direct Marketing Retail	7.3
Pharmaceuticals	6.7
Air Freight & Logistics	5.8
IT Services	5.7
Communications Equipment	5.1
Semiconductors & Semiconductor Equipment	4.9
Capital Markets	4.8
Biotechnology	4.3
Food Products	3.7
Household Products	3.5
Health Care Equipment & Supplies	2.6
Hotels, Restaurants & Leisure	2.6
Health Care Technology	2.6
Energy Equipment & Services	2.5
Other Investments, less than 2% each	3.1
Short-Term Investments	2.7
Total Investments	101.0
Other assets less liabilities	(1.0	)
Net Assets	100.0	%

See accompanying notes to financial statements.

45  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Value Fund

Shares		Description	Value (†)
	Common Stocks — 98.0% of Net Assets
		Aerospace & Defense — 3.7%
	99,639	Northrop Grumman Corp.	$	21,317,764
	245,287	United Technologies Corp.		24,921,159
				46,238,923
		Automobiles — 1.0%
	232,250	Harley-Davidson, Inc.		12,214,027
		Banks — 11.9%
	1,724,556	Bank of America Corp.		26,989,301
	451,096	Citigroup, Inc.		21,305,264
	628,059	Fifth Third Bancorp		12,850,087
	563,936	JPMorgan Chase & Co.		37,552,498
	245,423	PNC Financial Services Group, Inc. (The)		22,110,158
	644,545	Wells Fargo & Co.		28,540,453
				149,347,761
		Beverages — 1.5%
	176,784	PepsiCo, Inc.		19,228,796
		Biotechnology — 1.0%
	200,058	AbbVie, Inc.		12,617,658
		Capital Markets — 2.3%
	162,749	Ameriprise Financial, Inc.		16,237,468
	175,413	State Street Corp.		12,214,007
				28,451,475
		Chemicals — 1.4%
	262,897	E.I. du Pont de Nemours & Co.		17,606,212
		Communications Equipment — 3.0%
	719,409	Cisco Systems, Inc.		22,819,654
	169,171	Harris Corp.		15,497,755
				38,317,409
		Construction Materials — 1.5%
	163,165	Vulcan Materials Co.		18,556,755
		Consumer Finance — 2.7%
	183,919	American Express Co.		11,778,173
	390,527	Discover Financial Services		22,084,302
				33,862,475
		Containers & Packaging — 1.5%
	401,203	Sealed Air Corp.		18,383,121
		Diversified Telecommunication Services — 1.5%
	368,419	Verizon Communications, Inc.		19,150,420
		Electric Utilities — 2.9%
	161,807	NextEra Energy, Inc.		19,792,232
	278,156	PG&E Corp.		17,014,803
				36,807,035

See accompanying notes to financial statements.

|  46

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Value Fund – (continued)

Shares		Description	Value (†)
		Electrical Equipment — 1.4%
	267,043	Eaton Corp. PLC	$	17,547,395
		Energy Equipment & Services — 3.0%
	534,107	Halliburton Co.		23,970,722
	369,225	National Oilwell Varco, Inc.		13,565,327
				37,536,049
		Food & Staples Retailing — 1.6%
	232,311	CVS Health Corp.		20,673,356
		Food Products — 1.5%
	438,614	Mondelez International, Inc., Class A		19,255,155
		Health Care Equipment & Supplies — 1.9%
	278,905	Medtronic PLC		24,097,392
		Health Care Providers & Services — 3.5%
	77,430	Aetna, Inc.		8,939,294
	52,116	Humana, Inc.		9,218,799
	182,807	UnitedHealth Group, Inc.		25,592,980
				43,751,073
		Household Durables — 1.3%
	305,998	Newell Brands, Inc.		16,113,855
		Independent Power & Renewable Electricity Producers — 0.7%
	714,946	Calpine Corp.(b)		9,036,917
		Industrial Conglomerates — 1.4%
	150,392	Honeywell International, Inc.		17,534,203
		Insurance — 7.4%
	374,180	American International Group, Inc.		22,203,841
	525,760	FNF Group		19,405,802
	404,169	MetLife, Inc.		17,957,229
	162,771	Travelers Cos., Inc. (The)		18,645,418
	422,055	Unum Group		14,902,762
				93,115,052
		Internet & Direct Marketing Retail — 1.1%
	661,841	Liberty Interactive Corp./QVC Group, Class A(b)		13,243,438
		Machinery — 2.5%
	225,624	Ingersoll-Rand PLC		15,328,895
	248,709	Pentair PLC		15,977,066
				31,305,961
		Media — 2.7%
	358,638	Comcast Corp., Class A		23,792,045
	304,672	Liberty Global PLC, Class A(b)		10,413,689
				34,205,734
		Multiline Retail — 0.8%
	142,051	Dollar General Corp.		9,942,149

See accompanying notes to financial statements.

47  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Value Fund – (continued)

Shares		Description	Value (†)
		Oil, Gas & Consumable Fuels — 5.7%
	202,990	Chevron Corp.	$	20,891,731
	428,109	Hess Corp.		22,955,205
	327,064	Royal Dutch Shell PLC, Sponsored ADR		16,376,094
	217,853	Valero Energy Corp.		11,546,209
				71,769,239
		Pharmaceuticals — 8.2%
	81,615	Allergan PLC(b)		18,796,751
	194,425	Eli Lilly & Co.		15,604,550
	392,798	Merck & Co., Inc.		24,514,523
	789,880	Pfizer, Inc.		26,753,236
	375,865	Teva Pharmaceutical Industries Ltd., Sponsored ADR		17,293,549
				102,962,609
		Real Estate Management & Development — 0.8%
	349,891	CBRE Group, Inc., Class A(b)		9,789,950
		REITs – Diversified — 2.0%
	312,879	Outfront Media, Inc.		7,399,588
	558,166	Weyerhaeuser Co.		17,827,822
				25,227,410
		Road & Rail — 1.5%
	196,009	Norfolk Southern Corp.		19,024,634
		Semiconductors & Semiconductor Equipment — 1.6%
	288,492	QUALCOMM, Inc.		19,761,702
		Software — 5.3%
	595,386	Microsoft Corp.		34,294,234
	419,910	Oracle Corp.		16,494,065
	628,332	Symantec Corp.		15,771,133
				66,559,432
		Specialty Retail — 0.9%
	77,814	Advance Auto Parts, Inc.		11,603,624
		Technology Hardware, Storage & Peripherals — 1.6%
	180,644	Apple, Inc.		20,421,804
		Textiles, Apparel & Luxury Goods — 1.2%
	148,015	Ralph Lauren Corp.		14,970,237
		Tobacco — 1.5%
	197,879	Philip Morris International, Inc.		19,237,796
		Wireless Telecommunication Services — 1.0%
	439,217	Vodafone Group PLC, Sponsored ADR		12,803,176
		Total Common Stocks (Identified Cost $976,836,520)		1,232,271,409

See accompanying notes to financial statements.

|  48

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Value Fund – (continued)

Principal Amount		Description	Value (†)
	Short-Term Investments — 1.8%
$	22,406,170	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $22,406,226 on 10/03/2016 collateralized by $21,190,000 U.S. Treasury Note, 2.500% due 8/15/2023 valued at $22,858,713 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $22,406,170)	$	22,406,170
		Total Investments — 99.8% (Identified Cost $999,242,690)(a)		1,254,677,579
		Other assets less liabilities — 0.2%		2,353,347
		Net Assets — 100.0%	$	1,257,030,926
Shares
	Common Stocks Sold Short — 0.0%
		Chemicals — 0.0%
	6,015	AdvanSix, Inc.(b)(c) (Proceeds $102,513)	$	(99,789	)
	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2016, the net unrealized appreciation on investments based on a cost of $1,002,751,992 (excludes proceeds received from short sales of $102,513) 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
		Investment securities	$	291,262,745
		Securities sold short		2,724
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value
		Investment securities		(39,337,158	)
		Securities sold short		—
		Net unrealized appreciation	$	251,928,311
	(b)	Non-income producing security.
	(c)	When-issued security. When-issued refers to a transaction made conditionally because a security, although authorized, has not been issued.
	ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.
	REITs	Real Estate Investment Trusts

See accompanying notes to financial statements.

49  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Value Fund – (continued)

Industry Summary at September 30, 2016

Banks	11.9	%
Pharmaceuticals	8.2
Insurance	7.4
Oil, Gas & Consumable Fuels	5.7
Software	5.3
Aerospace & Defense	3.7
Health Care Providers & Services	3.5
Communications Equipment	3.0
Energy Equipment & Services	3.0
Electric Utilities	2.9
Media	2.7
Consumer Finance	2.7
Machinery	2.5
Capital Markets	2.3
REITs - Diversified	2.0
Other Investments, less than 2% each*	31.2
Short-Term Investments	1.8
Total Investments	99.8
Other assets less liabilities	0.2
Net Assets	100.0	%

* Net of securities sold short.

See accompanying notes to financial statements.

|  50

Statements of Assets and Liabilities

September 30, 2016

	Global Equity and Income Fund			Growth Fund		Value Fund
ASSETS
Investments at cost	$	1,352,352,627		$	3,888,883,205	$	999,242,690
Net unrealized appreciation		178,861,479			547,717,919		255,434,889
Investments at value		1,531,214,106			4,436,601,124		1,254,677,579
Cash		638,139			—		—
Due from brokers (Note 2)		6,000			—		—
Foreign currency at value (identified cost $3,699,350, $0 and $0, respectively)		3,685,013			—		—
Receivable for Fund shares sold		8,000,577			18,428,187		642,592
Receivable for securities sold		3,516,295			—		2,209,649
Collateral received for open forward foreign currency contracts (Note 4)		360,000			—		—
Dividends and interest receivable		7,036,063			2,771,334		953,043
Unrealized appreciation on forward foreign currency contracts (Note 2)		603,201			—		—
Tax reclaims receivable		580,602			683,770		—
Receivable for securities sold short (Note 2)		—			—		102,513
Prepaid expenses (Note 8)		6,195			11,771		6,015
TOTAL ASSETS		1,555,646,191			4,458,496,186		1,258,591,391
LIABILITIES
Securities sold short, at value (proceeds $102,513) (Note 2)		—			—		99,789
Payable for securities purchased		12,614,006			58,828,504		—
Payable for Fund shares redeemed		2,009,472			2,882,533		454,090
Unrealized depreciation on forward foreign currency contracts (Note 2)		286,333			—		—
Foreign taxes payable (Note 2)		22,570			—		—
Due to brokers (Note 2)		360,000			—		—
Management fees payable (Note 6)		982,791			1,756,842		522,286
Deferred Trustees’ fees (Note 6)		142,232			174,036		337,962
Administrative fees payable (Note 6)		55,490			154,543		45,540
Payable to distributor (Note 6d)		14,671			47,712		10,227
Other accounts payable and accrued expenses		154,568			139,189		90,571
TOTAL LIABILITIES		16,642,133			63,983,359		1,560,465
NET ASSETS	$	1,539,004,058		$	4,394,512,827	$	1,257,030,926
NET ASSETS CONSIST OF:
Paid-in capital	$	1,352,973,279		$	3,786,305,647	$	965,717,955
Undistributed net investment income		10,444,127			17,971,361		19,352,403
Accumulated net realized gain (loss) on investments and foreign currency transactions		(3,545,488	)		42,517,900		16,522,955
Net unrealized appreciation on investments, short sales and foreign currency translations		179,132,140			547,717,919		255,437,613
NET ASSETS	$	1,539,004,058		$	4,394,512,827	$	1,257,030,926

See accompanying notes to financial statements.

51  |

Statements of Assets and Liabilities (continued)

September 30, 2016

	Global Equity and Income Fund		Growth Fund		Value Fund
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	280,262,778	$	729,989,074	$	191,909,446
Shares of beneficial interest		14,619,381		61,020,198		9,257,594
Net asset value and redemption price per share	$	19.17	$	11.96	$	20.73
Offering price per share (100/94.25 of net asset value) (Note 1)	$	20.34	$	12.69	$	21.99
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	423,349,930	$	109,798,099	$	11,474,269
Shares of beneficial interest		22,415,130		9,931,314		561,591
Net asset value and offering price per share	$	18.89	$	11.06	$	20.43
Class N shares:
Net assets	$	—	$	60,765,103	$	499,533,298
Shares of beneficial interest		—		4,772,330		24,019,970
Net asset value, offering and redemption price per share	$	—	$	12.73	$	20.80
Class Y shares:
Net assets	$	835,391,350	$	3,493,960,551	$	553,259,447
Shares of beneficial interest		43,304,754		274,393,637		26,586,342
Net asset value, offering and redemption price per share	$	19.29	$	12.73	$	20.81
Admin Class shares:
Net assets	$	—	$	—	$	854,466
Shares of beneficial interest		—		—		41,942
Net asset value, offering and redemption price per share	$	—	$	—	$	20.37

See accompanying notes to financial statements.

|  52

Statements of Operations

For the Year Ended September 30, 2016

	Global Equity and Income Fund			Growth Fund			Value Fund
INVESTMENT INCOME
Dividends	$	12,925,585		$	41,165,704		$	37,676,942
Interest		23,696,821			29,400			21,438
Less net foreign taxes withheld		(785,746	)		(1,078,326	)		(291,695	)
		35,836,660			40,116,778			37,406,685
Expenses
Management fees (Note 6)		10,746,920			13,482,702			7,041,043
Service and distribution fees (Note 6)		4,868,443			1,778,520			797,832
Administrative fees (Note 6)		631,931			1,191,159			620,523
Trustees’ fees and expenses (Note 6)		54,665			85,010			63,804
Transfer agent fees and expenses (Note 6)		1,216,450			2,518,289			986,349
Audit and tax services fees		71,080			41,737			41,100
Custodian fees and expenses		240,721			102,273			35,531
Legal fees		23,524			40,157			23,341
Registration fees		104,983			268,216			102,969
Shareholder reporting expenses		88,269			129,612			71,342
Miscellaneous expenses (Note 8)		62,844			57,117			47,266
Total expenses		18,109,830			19,694,792			9,831,100
Less waiver and/or expense reimbursement (Note 6)		—			(205	)		—
Net expenses		18,109,830			19,694,587			9,831,100
Net investment income		17,726,830			20,422,191			27,575,585
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, SHORT SALES AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		(12,554,286	)		61,467,333			20,497,235
Foreign currency transactions		1,418,158			—			—
Net change in unrealized appreciation (depreciation) on:
Investments		125,468,401			460,433,284			85,540,666
Short sales		—			—			2,724
Foreign currency translations		188,409			—			—
Net realized and unrealized gain on investments, short sales and foreign currency transactions		114,520,682			521,900,617			106,040,625
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	132,247,512		$	542,322,808		$	133,616,210

See accompanying notes to financial statements.

53  |

Statements of Changes in Net Assets

	Global Equity and Income Fund						Growth Fund
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2016			Year Ended September 30, 2015
FROM OPERATIONS:
Net investment income	$	17,726,830		$	11,891,262		$	20,422,191		$	7,486,907
Net realized gain (loss) on investments and foreign currency transactions		(11,136,128	)		67,722,170			61,467,333			102,347,346
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		125,656,810			(94,044,352	)		460,433,284			(62,314,445	)
Net increase (decrease) in net assets resulting from operations		132,247,512			(14,430,920	)		542,322,808			47,519,808
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(2,081,218	)		(2,404,233	)		(638,700	)		(382,515	)
Class C		(533,445	)		(1,155,191	)		—			—
Class N		—			—			(27,613	)		(7	)
Class Y		(7,355,165	)		(8,199,038	)		(7,860,674	)		(5,959,493	)
Net realized capital gains
Class A		(11,445,258	)		(11,493,040	)		—			—
Class C		(18,956,422	)		(18,511,977	)		—			—
Class N		—			—			—			—
Class Y		(31,143,894	)		(30,839,565	)		—			—
Total distributions		(71,515,402	)		(72,603,044	)		(8,526,987	)		(6,342,015	)
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)		233,875,615			84,205,723			2,522,919,151			198,516,181
Net increase (decrease) in net assets		294,607,725			(2,828,241	)		3,056,714,972			239,693,974
NET ASSETS
Beginning of the year		1,244,396,333			1,247,224,574			1,337,797,855			1,098,103,881
End of the year	$	1,539,004,058		$	1,244,396,333		$	4,394,512,827		$	1,337,797,855
UNDISTRIBUTED NET INVESTMENT INCOME	$	10,444,127		$	7,742,946		$	17,971,361		$	6,076,156

See accompanying notes to financial statements.

|  54

Statements of Changes in Net Assets (continued)

	Value Fund
	Year Ended September 30, 2016			Year Ended September 30, 2015
FROM OPERATIONS:
Net investment income	$	27,575,585		$	25,736,925
Net realized gain on investments and foreign currency transactions		20,497,235			324,209,929
Net change in unrealized appreciation (depreciation) on investments, securities sold short and foreign currency translations		85,543,390			(400,601,216	)
Net increase (decrease) in net assets resulting from operations		133,616,210			(50,654,362	)
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(1,396,913	)		(10,401,685	)
Class C		(62,920	)		(187,911	)
Class N		(9,650,934	)		(13,964,469	)
Class Y		(10,292,470	)		(21,235,238	)
Admin Class		(1,221,354	)		(5,320	)
Net realized capital gains
Class A		(25,901,132	)		(52,482,381	)
Class B(a)		(7,739	)		(35,446	)
Class C		(3,063,203	)		(1,642,866	)
Class N		(118,136,122	)		(59,475,488	)
Class Y		(138,382,558	)		(98,286,185	)
Admin Class		(18,149,180	)		(27,631	)
Total distributions		(326,264,525	)		(257,744,620	)
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)		(11,555,512	)		(524,658,028	)
Net decrease in net assets		(204,203,827	)		(833,057,010	)
NET ASSETS
Beginning of the year		1,461,234,753			2,294,291,763
End of the year	$	1,257,030,926		$	1,461,234,753
UNDISTRIBUTED NET INVESTMENT INCOME	$	19,352,403		$	16,118,141

(a) On January 11, 2016, Class B shares were converted into Class A shares. See Note 1 of Notes to Financial Statements.

See accompanying notes to financial statements.

55  |

Financial Highlights

For a share outstanding throughout each period.

	Global Equity and Income Fund—Class A
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	18.45		$	19.77		$	18.57		$	17.07		$	14.24
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.24			0.21			0.28			0.32	(b)		0.35	(c)
Net realized and unrealized gain (loss)		1.47			(0.37	)		1.49			1.45			2.71
Total from Investment Operations		1.71			(0.16	)		1.77			1.77			3.06
LESS DISTRIBUTIONS FROM:
Net investment income		(0.15	)		(0.20	)		(0.33	)		(0.27	)		(0.23	)
Net realized capital gains		(0.84	)		(0.96	)		(0.24	)		—			—
Total Distributions		(0.99	)		(1.16	)		(0.57	)		(0.27	)		(0.23	)
Net asset value, end of the period	$	19.17		$	18.45		$	19.77		$	18.57		$	17.07
Total return(d)		9.64	%		(0.91	)%		9.62	%		10.54	%(b)		21.75	%(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	280,263		$	246,371		$	237,167		$	251,211		$	216,209
Net expenses		1.17	%		1.18	%		1.17	%		1.18	%		1.21	%
Gross expenses		1.17	%		1.18	%		1.17	%		1.18	%		1.21	%
Net investment income		1.32	%		1.06	%		1.46	%		1.82	%(b)		2.16	%(c)
Portfolio turnover rate		43	%		48	%		49	%		58	%		29	%

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

(b) Includes non-recurring dividends. Without these dividends, net investment income per share would have been $0.27, total return would have been 10.25% and the ratio of net investment income to average net assets would have been 1.51%.

(c) Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.31, total return would have been 21.46% and the ratio of net investment income to average net assets would have been 1.93%.

(d) A sales charge for Class A shares is not reflected in total return calculations.

See accompanying notes to financial statements.

|  56

Financial Highlights (continued)

For a share outstanding throughout each period.

	Global Equity and Income Fund—Class C
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	18.19		$	19.51		$	18.36		$	16.90		$	14.10
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.10			0.06			0.14			0.19	(b)		0.22	(c)
Net realized and unrealized gain (loss)		1.46			(0.36	)		1.45			1.45			2.70
Total from Investment Operations		1.56			(0.30	)		1.59			1.64			2.92
LESS DISTRIBUTIONS FROM:
Net investment income		(0.02	)		(0.06	)		(0.20	)		(0.18	)		(0.12	)
Net realized capital gains		(0.84	)		(0.96	)		(0.24	)		—			—
Total Distributions		(0.86	)		(1.02	)		(0.44	)		(0.18	)		(0.12	)
Net asset value, end of the period	$	18.89		$	18.19		$	19.51		$	18.36		$	16.90
Total return(d)		8.88	%		(1.66	)%		8.72	%		9.77	%(b)		20.83	%(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	423,350		$	393,416		$	377,001		$	340,561		$	251,366
Net expenses		1.92	%		1.93	%		1.92	%		1.93	%		1.96	%
Gross expenses		1.92	%		1.93	%		1.92	%		1.93	%		1.96	%
Net investment income		0.57	%		0.31	%		0.71	%		1.07	%(b)		1.40	%(c)
Portfolio turnover rate		43	%		48	%		49	%		58	%		29	%

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

(b) Includes non-recurring dividends. Without these dividends, net investment income per share would have been $0.13, total return would have been 9.41% and the ratio of net investment income to average net assets would have been 0.76%.

(c) Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.19, total return would have been 20.55% and the ratio of net investment income to average net assets would have been 1.18%.

(d) A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

See accompanying notes to financial statements.

57  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Global Equity and Income Fund—Class Y
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	18.55		$	19.89		$	18.68		$	17.15		$	14.31
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.29			0.25			0.33			0.37	(b)		0.40	(c)
Net realized and unrealized gain (loss)		1.49			(0.37	)		1.49			1.47			2.71
Total from Investment Operations		1.78			(0.12	)		1.82			1.84			3.11
LESS DISTRIBUTIONS FROM:
Net investment income		(0.20	)		(0.26	)		(0.37	)		(0.31	)		(0.27	)
Net realized capital gains		(0.84	)		(0.96	)		(0.24	)		—			—
Total Distributions		(1.04	)		(1.22	)		(0.61	)		(0.31	)		(0.27	)
Net asset value, end of the period	$	19.29		$	18.55		$	19.89		$	18.68		$	17.15
Total return		9.97	%		(0.72	)%		9.87	%		10.90	%(b)		21.96	%(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	835,391		$	604,609		$	633,057		$	570,694		$	460,103
Net expenses		0.92	%		0.93	%		0.92	%		0.93	%		0.96	%
Gross expenses		0.92	%		0.93	%		0.92	%		0.93	%		0.96	%
Net investment income		1.58	%		1.30	%		1.69	%		2.07	%(b)		2.44	%(c)
Portfolio turnover rate		43	%		48	%		49	%		58	%		29	%

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

(b) Includes non-recurring dividends. Without these dividends, net investment income per share would have been $0.31, total return would have been 10.60% and the ratio of net investment income to average net assets would have been 1.76%.

(c) Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.36, total return would have been 21.75% and the ratio of net investment income to average net assets would have been 2.20%.

See accompanying notes to financial statements.

|  58

Financial Highlights (continued)

For a share outstanding throughout each period.

	Growth Fund—Class A
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	9.90		$	9.45		$	8.07		$	6.50		$	5.24
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.06			0.05			0.05			0.04			0.04
Net realized and unrealized gain (loss)		2.05			0.45			1.34			1.59			1.23
Total from Investment Operations		2.11			0.50			1.39			1.63			1.27
LESS DISTRIBUTIONS FROM:
Net investment income		(0.05	)		(0.05	)		(0.01	)		(0.06	)		(0.01	)
Net realized capital gains		—			—			—			—			—
Total Distributions		(0.05	)		(0.05	)		(0.01	)		(0.06	)		(0.01	)
Net asset value, end of the period	$	11.96		$	9.90		$	9.45		$	8.07		$	6.50
Total return(b)		21.32	%		5.30	%		17.23	%		25.23	%		24.22	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	729,989		$	122,203		$	63,682		$	50,248		$	33,663
Net expenses		0.92	%		0.92	%		0.94	%		1.03	%		1.07	%
Gross expenses		0.92	%		0.92	%		0.94	%		1.03	%		1.07	%
Net investment income		0.58	%		0.45	%		0.55	%		0.57	%		0.61	%
Portfolio turnover rate		11	%		27	%(c)		14	%		6	%		16	%

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

(b) A sales charge for Class A shares is not reflected in total return calculations.

(c) Portfolio turnover would have been 6% if excluding the transfer in-kind amounts that occurred during the period.

See accompanying notes to financial statements.

59  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Growth Fund—Class C
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	9.18		$	8.79		$	7.55		$	6.09		$	4.94
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss(a)		(0.02	)		(0.03	)		(0.02	)		(0.01	)		(0.01	)
Net realized and unrealized gain (loss)		1.90			0.42			1.26			1.48			1.16
Total from Investment Operations		1.88			0.39			1.24			1.47			1.15
LESS DISTRIBUTIONS FROM:
Net investment income		—			—			—			(0.01	)		—
Net realized capital gains		—			—			—			—			—
Total Distributions		—			—			—			(0.01	)		—
Net asset value, end of the period	$	11.06		$	9.18		$	8.79		$	7.55		$	6.09
Total return(b)		20.48	%		4.44	%		16.42	%		24.21	%		23.28	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	109,798		$	41,421		$	29,837		$	20,798		$	10,489
Net expenses		1.66	%		1.67	%		1.69	%		1.78	%		1.82	%
Gross expenses		1.66	%		1.67	%		1.69	%		1.78	%		1.82	%
Net investment loss		(0.16	)%		(0.29	)%		(0.20	)%		(0.20	)%		(0.13	)%
Portfolio turnover rate		11	%		27	%(c)		14	%		6	%		16	%

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

(b) A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

(c) Portfolio turnover would have been 6% if excluding the transfer in-kind amounts that occurred during the period.

See accompanying notes to financial statements.

|  60

Financial Highlights (continued)

For a share outstanding throughout each period.

	Growth Fund—Class N
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Period Ended September 30, 2013*
Net asset value, beginning of the period	$	10.52		$	10.01		$	8.56		$	7.58
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.10			0.08			0.05			0.03
Net realized and unrealized gain (loss)		2.18			0.49			1.42			0.95
Total from Investment Operations		2.28			0.57			1.47			0.98
LESS DISTRIBUTIONS FROM:
Net investment income		(0.07	)		(0.06	)		(0.02	)		—
Net realized capital gains		—			—			—			—
Total Distributions		(0.07	)		(0.06	)		(0.02	)		—
Net asset value, end of the period	$	12.73		$	10.52		$	10.01		$	8.56
Total return(b)		21.75	%		5.65	%		17.21	%		12.93	%(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	60,765		$	1		$	1		$	1
Net expenses(d)		0.58	%		0.55	%		0.95	%		0.95	%(e)
Gross expenses		0.58	%		9.82	%		3.45	%		3.50	%(e)
Net investment income		0.82	%		0.71	%		0.52	%		0.60	%(e)
Portfolio turnover rate		11	%		27	%(f)		14	%		6	%

* From commencement of Class operations on February 1, 2013 through September 30, 2013.

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

(b) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(c) Periods less than one year are not annualized.

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

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

(f) Portfolio turnover would have been 6% if excluding the transfer in-kind amounts that occurred during the period.

See accompanying notes to financial statements.

61  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Growth Fund—Class Y
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	10.53		$	10.04		$	8.57		$	6.90		$	5.56
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.10			0.07			0.08			0.05			0.06
Net realized and unrealized gain (loss)		2.16			0.49			1.42			1.69			1.30
Total from Investment Operations		2.26			0.56			1.50			1.74			1.36
LESS DISTRIBUTIONS FROM:
Net investment income		(0.06	)		(0.07	)		(0.03	)		(0.07	)		(0.02	)
Net realized capital gains		—			—			—			—			—
Total Distributions		(0.06	)		(0.07	)		(0.03	)		(0.07	)		(0.02	)
Net asset value, end of the period	$	12.73		$	10.53		$	10.04		$	8.57		$	6.90
Total return		21.55	%		5.59	%		17.51	%		25.49	%		24.57	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	3,493,961		$	1,174,150		$	1,004,157		$	541,245		$	102,688
Net expenses		0.66	%		0.67	%		0.69	%		0.77	%		0.82	%
Gross expenses		0.66	%		0.67	%		0.69	%		0.77	%		0.82	%
Net investment income		0.82	%		0.69	%		0.79	%		0.68	%		0.87	%
Portfolio turnover rate		11	%		27	%(b)		14	%		6	%		16	%

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

(b) Portfolio turnover would have been 6% if excluding the transfer in-kind amounts that occurred during the period.

See accompanying notes to financial statements.

|  62

Financial Highlights (continued)

For a share outstanding throughout each period.

	Value Fund—Class A
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	23.98		$	28.47		$	25.59		$	20.86		$	16.04
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.34			0.29			0.45	(b)		0.31			0.27
Net realized and unrealized gain (loss)		1.80			(1.58	)		4.00			4.70			4.78
Total from Investment Operations		2.14			(1.29	)		4.45			5.01			5.05
LESS DISTRIBUTIONS FROM:
Net investment income		(0.28	)		(0.53	)		(0.27	)		(0.28	)		(0.23	)
Net realized capital gains		(5.11	)		(2.67	)		(1.30	)		—			—
Total Distributions		(5.39	)		(3.20	)		(1.57	)		(0.28	)		(0.23	)
Net asset value, end of the period	$	20.73		$	23.98		$	28.47		$	25.59		$	20.86
Total return(c)		9.65	%		(5.59	)%		17.97	%(b)		24.35	%		31.71	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	191,909		$	124,662		$	580,092		$	171,327		$	129,572
Net expenses		0.94	%		0.95	%		0.96	%		0.97	%		0.98	%
Gross expenses		0.94	%		0.95	%		0.96	%		0.97	%		0.98	%
Net investment income		1.65	%		1.07	%		1.63	%(b)		1.31	%		1.45	%
Portfolio turnover rate		15	%		20	%		28	%		24	%		25	%

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

(b) Includes non-recurring dividends. Without these dividends, net investment income per share would have been $0.29, total return would have been 17.02% and the ratio of net investment income to average net assets would have been 1.05%.

(c) A sales charge for Class A shares is not reflected in total return calculations.

See accompanying notes to financial statements.

63  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Value Fund—Class C
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	23.69		$	28.14		$	25.33		$	20.65		$	15.85
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.20			0.10			0.31	(b)		0.13			0.13
Net realized and unrealized gain (loss)		1.76			(1.57	)		3.89			4.68			4.74
Total from Investment Operations		1.96			(1.47	)		4.20			4.81			4.87
LESS DISTRIBUTIONS FROM:
Net investment income		(0.11	)		(0.31	)		(0.09	)		(0.13	)		(0.07	)
Net realized capital gains		(5.11	)		(2.67	)		(1.30	)		—			—
Total Distributions		(5.22	)		(2.98	)		(1.39	)		(0.13	)		(0.07	)
Net asset value, end of the period	$	20.43		$	23.69		$	28.14		$	25.33		$	20.65
Total return(c)		8.85	%		(6.30	)%		17.07	%(b)		23.41	%		30.78	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	11,474		$	15,071		$	16,958		$	15,158		$	9,104
Net expenses		1.69	%		1.70	%		1.71	%		1.72	%		1.73	%
Gross expenses		1.69	%		1.70	%		1.71	%		1.72	%		1.73	%
Net investment income		0.94	%		0.40	%		1.15	%(b)		0.55	%		0.70	%
Portfolio turnover rate		15	%		20	%		28	%		24	%		25	%

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

(b) Includes non-recurring dividends. Without these dividends, net investment income per share would have been $0.08, total return would have been 16.11% and the ratio of net investment income to average net assets would have been 0.28%.

(c) A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

See accompanying notes to financial statements.

|  64

Financial Highlights (continued)

For a share outstanding throughout each period.

	Value Fund—Class N
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Period Ended September 30, 2013*
Net asset value, beginning of the period	$	24.09		$	28.58		$	25.65		$	22.59
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.44			0.42			0.63	(b)		0.25
Net realized and unrealized gain (loss)		1.80			(1.61	)		3.94			2.81
Total from Investment Operations		2.24			(1.19	)		4.57			3.06
LESS DISTRIBUTIONS FROM:
Net investment income		(0.42	)		(0.63	)		(0.34	)		—
Net realized capital gains		(5.11	)		(2.67	)		(1.30	)		—
Total Distributions		(5.53	)		(3.30	)		(1.64	)		—
Net asset value, end of the period	$	20.80		$	24.09		$	28.58		$	25.65
Total return		10.08	%		(5.23	)%		18.43	%(b)		13.55	%(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	499,533		$	554,946		$	392,811		$	260,643
Net expenses		0.57	%		0.57	%		0.57	%		0.57	%(d)
Gross expenses		0.57	%		0.57	%		0.57	%		0.57	%(d)
Net investment income		2.11	%		1.55	%		2.28	%(b)		1.50	%(d)
Portfolio turnover rate		15	%		20	%		28	%		24	%

* From commencement of Class operations on February 1, 2013 through September 30, 2013.

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

(b) Includes non-recurring dividends. Without these dividends, net investment income per share would have been $0.39, total return would have been 17.48% and the ratio of net investment income to average net assets would have been 1.43%.

(c) Periods less than one year are not annualized.

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

See accompanying notes to financial statements.

65  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Value Fund—Class Y
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	24.10		$	28.58		$	25.65		$	20.91		$	16.08
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.41			0.37			0.60	(b)		0.36			0.32
Net realized and unrealized gain (loss)		1.79			(1.60	)		3.94			4.72			4.78
Total from Investment Operations		2.20			(1.23	)		4.54			5.08			5.10
LESS DISTRIBUTIONS FROM:
Net investment income		(0.38	)		(0.58	)		(0.31	)		(0.34	)		(0.27	)
Net realized capital gains		(5.11	)		(2.67	)		(1.30	)		—			—
Total Distributions		(5.49	)		(3.25	)		(1.61	)		(0.34	)		(0.27	)
Net asset value, end of the period	$	20.81		$	24.10		$	28.58		$	25.65		$	20.91
Total return		9.92	%		(5.37	)%		18.27	%(b)		24.65	%		32.05	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	553,259		$	681,109		$	1,303,492		$	1,513,807		$	1,240,093
Net expenses		0.69	%		0.70	%		0.71	%		0.72	%		0.73	%
Gross expenses		0.69	%		0.70	%		0.71	%		0.72	%		0.73	%
Net investment income		1.95	%		1.36	%		2.19	%(b)		1.56	%		1.68	%
Portfolio turnover rate		15	%		20	%		28	%		24	%		25	%

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

(b) Includes non-recurring dividends. Without these dividends, net investment income per share would have been $0.35, total return would have been 17.32% and the ratio of net investment income to average net assets would have been 1.28%.

See accompanying notes to financial statements.

|  66

Financial Highlights (continued)

For a share outstanding throughout each period.

	Value Fund —Admin Class
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	23.81		$	28.34		$	25.51		$	20.79		$	16.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.32			0.26			0.30	(b)		0.24			0.22
Net realized and unrealized gain (loss)		1.69			(1.61	)		4.07			4.71			4.77
Total from Investment Operations		2.01			(1.35	)		4.37			4.95			4.99
LESS DISTRIBUTIONS FROM:
Net investment income		(0.34	)		(0.51	)		(0.24	)		(0.23	)		(0.20	)
Net realized capital gains		(5.11	)		(2.67	)		(1.30	)		—			—
Total Distributions		(5.45	)		(3.18	)		(1.54	)		(0.23	)		(0.20	)
Net asset value, end of the period	$	20.37		$	23.81		$	28.34		$	25.51		$	20.79
Total return		9.11	%		(5.83	)%		17.68	%(b)		24.08	%		31.43	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	854		$	85,387		$	268		$	12		$	2
Net expenses		1.19	%		1.23	%		1.21	%		1.19	%		1.24	%
Gross expenses		1.19	%		1.23	%		1.21	%		1.19	%		1.24	%
Net investment income		1.61	%		1.03	%		1.07	%(b)		1.01	%		1.17	%
Portfolio turnover rate		15	%		20	%		28	%		24	%		25	%

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

(b) Includes non-recurring dividends. Without these dividends, net investment income per share would have been $0.27, total return would have been 16.73% and the ratio of net investment income to average net assets would have been 0.96%.

See accompanying notes to financial statements.

67  |

Notes to Financial Statements

September 30, 2016

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

Loomis Sayles Global Equity and Income Fund (the “Global Equity and Income Fund”)

Loomis Sayles Growth Fund (the “Growth Fund”)

Loomis Sayles Value Fund (the “Value Fund”)

Each Fund is a diversified investment company.

Each Fund offers Class A, Class C and Class Y shares. In addition, Growth Fund and Value Fund offer Class N shares and Value Fund offers Admin Class shares. As of the close of business on January 11, 2016, Class B shares were converted into Class A shares and are no longer offered.

Class A shares are sold with a maximum front-end sales charge of 5.75%. Class C shares do not pay a front-end sales charge, do not convert to any other class of shares, pay higher Rule 12b-1 fees than Class A shares and may be subject to a CDSC of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are offered with no initial minimum investment to certain retirement plans held in an omnibus fashion and fund of funds that are distributed by NGAM Distribution, L.P. (“NGAM Distribution”) and with an initial minimum investment of $1,000,000 to other categories of investors. Class Y shares are generally intended for institutional investors with a minimum initial investment of $100,000, though some categories of investors are exempted from the minimum investment amount as outlined in the Funds’ prospectus. Admin Class shares do not pay a front-end sales charge or a CDSC, but do pay a Rule 12b-1 fee. Class N and Admin Class shares are offered exclusively through intermediaries.

Most expenses can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”). Expenses of a Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (such as the Rule 12b-1 fees applicable to Class A, Class C and Admin Class ), and transfer agent fees are borne collectively for Growth Fund and Value Fund Class A, Class B, Class C and Admin Class (for Value Fund) and individually for Class N. In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan.

|  68

Notes to Financial Statements (continued)

September 30, 2016

Shares of each class would receive their pro rata share of the net assets of a Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

2.  Significant Accounting Policies.  The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements follow the accounting and reporting guidelines provided for investment companies and are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions subsequent to year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.

a.  Valuation.  Fund securities and other investments are valued at market value based on market quotations obtained or determined by independent pricing services recommended by the adviser and approved by the Board of Trustees. Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees, as described below. Market value is determined as follows:

Listed equity securities (including shares of closed-end investment companies and exchange-traded funds) are valued at the last sale price quoted on the exchange where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. 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 an NOCP, at the most recent bid quotations on the applicable NASDAQ Market. Unlisted equity securities (except unlisted preferred equity securities) are valued at the last sale price quoted in the market where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. If there is no last sale price or closing bid quotation available, unlisted equity securities will be valued using evaluated bids furnished by an independent pricing service, if available. In some foreign markets, an official close price and a last sale price may be available from the foreign exchange or market. In those cases, the official close price is used. Debt securities and unlisted preferred equity securities are valued based on evaluated bids furnished to the Funds by an independent pricing service or bid prices obtained from broker-dealers. Senior loans are valued at bid prices supplied by an independent pricing service, if available. Broker-dealer bid prices may be used to value debt and unlisted equity securities and

69  |

Notes to Financial Statements (continued)

September 30, 2016

senior loans where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Forward foreign currency contracts are valued utilizing interpolated rates determined based on information provided by an independent pricing service.

Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees. The Funds may also value securities and other investments at fair value in other circumstances such as when extraordinary events occur after the close of a foreign market but prior to the close of the New York Stock Exchange (“NYSE”). This may include situations relating to a single issuer (such as a declaration of bankruptcy or a delisting of the issuer’s security from the primary market on which it has traded) as well as events affecting the securities markets in general (such as market disruptions or closings and significant fluctuations in U.S. and/or foreign markets). When fair valuing its securities or other investments, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities or other market activity and/or significant events that occur after the close of the foreign market and before the time the Fund’s net asset value (“NAV”) is calculated. Fair value pricing may require subjective determinations about the value of a security, and fair values used to determine a Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same securities. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities held by a Fund.

Illiquid securities for which market quotations are readily available and have been evaluated by the adviser are considered and classified as fair valued securities.

As of September 30, 2016, securities held by Global Equity and Income Fund were fair valued as follows:

Equity securities1	Percentage of Net Assets	Securities classified as fair valued	Percentage of Net Assets	Securities fair valued by the Fund’s adviser	Percentage of Net Assets
$289,507,281	18.8%	$3,086,233	0.2%	$123,730	Less than 0.1%

¹  Certain foreign equity securities were fair valued pursuant to procedures approved by the Board of Trustees as events occurring after the close of the foreign market were believed to materially affect the value of those securities.

b.  Investment Transactions and Related Investment Income.  Investment transactions are accounted for on a trade date plus one day basis for daily NAV calculation. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an

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accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium, if 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.  Short Sales.  A short sale is a transaction in which a Fund sells a security it does not own, usually in anticipation of a decline in the fair market value of the security. To sell a security short, a Fund typically borrows that security from a prime broker and delivers it to the short sale counterparty. Short sale proceeds are held by the prime broker until the short position is closed out and would be reflected as due from broker in the Statements of Assets and Liabilities. When closing out a short position, a Fund will have to purchase the security it originally sold short. The value of short sales is reflected as a liability in the Statements of Assets and Liabilities and is marked-to-market daily.

During the period ended September 30, 2016, Value Fund was due to receive shares of AdvanSix, Inc. as part of a corporate action. The Fund sold its shares on a when-issued basis prior to receiving them. This transaction is presented in the Portfolio of Investments as a short sale. Since the Fund did not borrow the security and did not utilize a prime broker, proceeds from the sale are reflected as receivable for securities sold short in the Statements of Assets and Liabilities.

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

Net realized foreign exchange gains or losses arise from sales of foreign currency, changes in exchange rates between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investment securities, as of the end of the fiscal period, resulting from changes in exchange rates. Net realized foreign exchange gains or losses and the net change in unrealized foreign exchange gains or losses are disclosed in the Statements of Operations. For federal income tax purposes, net realized foreign exchange gains or losses are characterized as ordinary income and may, if the Fund has net losses, reduce the amount of income available to be distributed by the Fund.

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September 30, 2016

The values of investment securities are presented at the foreign exchange rates prevailing at the end of the period for financial reporting purposes. Net realized and unrealized gains or losses on investments reported in the Statements of Operations reflect gains or losses resulting from changes in exchange rates and fluctuations which arise due to changes in market prices of investment securities. For federal income tax purposes, a portion of the net realized gain or loss on investments arising from changes in exchange rates, which is reflected in the Statements of Operations, may be characterized as ordinary income and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.

For the year ended September 30, 2016, the amount of income available to be distributed has been reduced by $5,333,285 for Global Equity and Income Fund.

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

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

f.  Due to/from Brokers.  Transactions and positions in certain forward foreign currency contracts are maintained and cleared by registered U.S. broker/dealers pursuant to customer agreements between a Fund and the various broker/dealers. The due to brokers balance in the Statement of Assets and Liabilities for Global Equity and Income Fund represents cash received as collateral for forward foreign currency contracts. The due from brokers balance in the Statement of Assets and Liabilities for Global Equity and Income Fund represents cash pledged as collateral for forward foreign currency contracts. In certain circumstances the Fund’s use of cash held at brokers is restricted by regulation or broker mandated limits.

g.  When-Issued and Delayed Delivery Transactions.  The Funds may enter into when-issued or delayed delivery transactions. When-issued refers to transactions made

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September 30, 2016

conditionally because a security, although authorized, has not been issued. Delayed delivery refers to transactions for which delivery or payment will occur at a later date, beyond the normal settlement period. The price of when-issued and delayed delivery securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The security and the obligation to pay for it are recorded by the Funds at the time the commitment is entered into. The value of the security may vary with market fluctuations during the time before the Funds take delivery of the security. No interest accrues to the Funds until the transaction settles.

Delayed delivery transactions include those designated as To Be Announced (“TBAs”) in the Portfolios of Investments. For TBAs, the actual security that will be delivered to fulfill the transaction is not designated at the time of the trade. The security is “to be announced” 48 hours prior to the established trade settlement date. Certain transactions require the Funds or counterparty to post cash and/or securities as collateral for the net mark-to-market exposure to the other party. The Funds cover their net obligations under outstanding delayed delivery commitments by segregating or earmarking cash or securities at the custodian.

Purchases of when-issued or delayed delivery securities may have a similar effect on the Funds’ NAV as if the Funds’ had created a degree of leverage in the portfolio. Risks may arise upon entering into such transactions from the potential inability of counterparties to meet their obligations under the transactions. Additionally, losses may arise due to changes in the value of the underlying securities.

h.  Federal and Foreign Income Taxes.  The Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of September 30, 2016 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

A Fund may be subject to foreign withholding taxes on investment income and taxes on capital gains on investments that are accrued and paid based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign withholding taxes on dividend and interest income are reflected on the Statements of Operations as a reduction of investment income, net of amounts

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September 30, 2016

eligible to be reclaimed. Dividends and interest receivable on the Statements of Assets and Liabilities are net of foreign withholding taxes. Foreign withholding taxes where reclaims have been or will be filed are reflected on the Statements of Assets and Liabilities as tax reclaims receivable. Capital gains taxes paid are included in net realized gain (loss) on investments in the Statements of Operations. Accrued but unpaid capital gains taxes are reflected as foreign taxes payable on the Statements of Assets and Liabilities, if applicable, and reduce unrealized gains on investments. In the event that realized gains on investments are subsequently offset by realized losses, taxes paid on realized gains may be returned to a Fund. Such amounts, if applicable, are reflected as foreign tax rebates receivable on the Statements of Assets and Liabilities and are recorded as a realized gain when received.

i.  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 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 of items such as defaulted and/or non-income producing securities, foreign currency gains and losses, paydown gains and losses, contingent payment debt instruments, capital gain and return of capital distributions received, convertible bonds, distribution re-designations and premium amortization. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts reported on the Statements of Assets and Liabilities. Temporary differences between book and tax distributable earnings are primarily due to deferred Trustees’ fees, forward foreign currency contract mark-to-market, wash sales, premium amortization, contingent payment debt instruments, capital gains taxes, trust preferred securities, convertible bonds and return of capital distributions received. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

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Notes to Financial Statements (continued)

September 30, 2016

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, 2016 and 2015 were as follows:

	2016 Distributions Paid From:						2015 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Global Equity and Income Fund	$	13,560,829	$	57,954,573	$	71,515,402	$	29,430,584	$	43,172,460	$	72,603,044
Growth Fund		8,526,987		—		8,526,987		6,342,015		—		6,342,015
Value Fund		22,731,511		303,533,014		326,264,525		56,748,378		200,996,242		257,744,620

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, 2016, the components of distributable earnings on a tax basis were as follows:

	Global Equity and Income Fund			Growth Fund		Value Fund
Undistributed ordinary income	$	11,468,934		$	30,843,548	$	19,690,365
Undistributed long-term capital gains		—			30,860,087		20,032,257
Total undistributed earnings		11,468,934			61,703,635		39,722,622
Capital loss carryforward:
No expiration date		(5,511,225	)		—		—
Unrealized appreciation		180,215,983			546,677,581		251,928,311
Total accumulated earnings	$	186,173,692		$	608,381,216	$	291,650,933
Capital loss carryforward utilized in the current year	$	—		$	18,909,834	$	—

As of September 30, 2016, unrealized appreciation (depreciation) on a tax basis was as follows:

	Global Equity and Income Fund			Growth Fund		Value Fund
Unrealized appreciation (depreciation)
Investments	$	187,650,866		$	546,677,581	$	251,928,311
Foreign currency translations		(7,434,883	)		—		—
Total unrealized appreciation (depreciation)	$	180,215,983		$	546,677,581	$	251,928,311

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September 30, 2016

j.  Repurchase Agreements.  Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of September 30, 2016, each Fund, as applicable, had investments in repurchase agreements for which the value of the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.

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

For the year ended September 30, 2016, none of the Funds had loaned securities under this agreement.

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

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Notes to Financial Statements (continued)

September 30, 2016

3.  Fair Value Measurements.  In accordance with accounting standards related to fair value measurements and disclosures, the Funds have categorized the inputs utilized in determining the value of each Fund’s assets or liabilities. These inputs are summarized in the three broad levels listed below:

• Level 1 – quoted prices in active markets for identical assets or liabilities;

• Level 2 – prices determined using other significant inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk, etc.); and

• Level 3 – prices determined using significant unobservable inputs when quoted prices or observable inputs are unavailable such as when there is little or no market activity for an asset or liability (unobservable inputs reflect each Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The Fund’s pricing policies and procedures are recommended by the adviser and approved by the Board of Trustees. Debt securities are valued based on evaluated bids furnished to the Fund by an independent pricing service. Broker-dealer bid prices may be used if an independent pricing service either is unable to price a security or does not provide a reliable price for a security. Broker-dealer bid prices for which the Fund does not have knowledge of the inputs used by the broker-dealer are categorized in Level 3. All security prices, including those obtained from an independent pricing service and broker-dealer bid prices, are reviewed on a daily basis by the adviser, subject to oversight by Fund management and the Board of Trustees. If the adviser, in good faith, believes that the price provided by an independent pricing service is unreliable, broker-dealer bid prices may be used until the price provided by the independent pricing service is considered to be reliable. Reliability of all security prices, including those obtained from an independent pricing service and broker-dealer bid prices, is tested in a variety of ways, including comparison to recent transaction prices and daily fluctuations, amongst other validation procedures in place. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Fund’s adviser pursuant to procedures approved by the Board of Trustees. Fair valued securities may be categorized in Level 3.

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Notes to Financial Statements (continued)

September 30, 2016

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2016, at value:

Global Equity and Income Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3			Total
Common Stocks
Belgium	$	—	$	33,532,248	$	—		$	33,532,248
France		—		27,296,723		—			27,296,723
Hong Kong		—		36,327,053		—			36,327,053
India		15,561,172		13,768,551		—			29,329,723
Italy		—		14,973,444		—			14,973,444
Japan		—		16,289,630		—			16,289,630
Sweden		—		25,429,895		—			25,429,895
Switzerland		—		76,355,001		—			76,355,001
United Kingdom		—		45,534,736		—			45,534,736
United States		637,781,264		—		1,332	(b)		637,782,596
All Other Common Stocks(a)		63,664,191		—		—			63,664,191
Total Common Stocks		717,006,627		289,507,281		1,332			1,006,515,240
Bonds and Notes
Non-Convertible Bonds
United States		36,760		280,242,042		118,622	(b)		280,397,424
All Other Non-Convertible Bonds(a)		—		192,069,637		—			192,069,637
Total Non-Convertible Bonds		36,760		472,311,679		118,622			472,467,061
Convertible Bonds(a)		—		15,023,618		—			15,023,618
Municipals(a)		—		261,074		—			261,074
Total Bonds and Notes		36,760		487,596,371		118,622			487,751,753
Senior Loans(a)		—		4,283,202		—			4,283,202
Preferred Stocks(a)		224,204		473,440		—			697,644
Warrants		—		—		3,776	(b)		3,776
Short-Term Investments		—		31,962,491		—			31,962,491
Total Investments		717,267,591		813,822,785		123,730			1,531,214,106
Forward Foreign Currency Contracts (unrealized appreciation)		—		603,201		—			603,201
Total	$	717,267,591	$	814,425,986	$	123,730		$	1,531,817,307

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Notes to Financial Statements (continued)

September 30, 2016

Global Equity and Income Fund (continued)

Liability Valuation Inputs

Description	Level 1		Level 2			Level 3		Total
Forward Foreign Currency Contracts (unrealized depreciation)	$	—	$	(286,333	)	$	—	$	(286,333	)

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

(b) Fair valued by the Fund’s adviser.

Growth Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	4,320,602,267	$	—	$	—	$	4,320,602,267
Short-Term Investments		—		115,998,857		—		115,998,857
Total	$	4,320,602,267	$	115,998,857	$	—	$	4,436,601,124

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

For the year ended September 30, 2016, there were no transfers among Levels 1, 2 and 3.

Value Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	1,232,271,409	$	—	$	—	$	1,232,271,409
Short-Term Investments		—		22,406,170		—		22,406,170
Total	$	1,232,271,409	$	22,406,170	$	—	$	1,254,677,579

Liability Valuation Inputs

Description	Level 1			Level 2		Level 3		Total
Common Stocks Sold Short(a)	$	(99,789	)	$	—	$	—	$	(99,789	)

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

For the year ended September 30, 2016, there were no transfers among Levels 1, 2 and 3.

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Notes to Financial Statements (continued)

September 30, 2016

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of September 30, 2015 and/or September 30, 2016:

Global Equity and Income Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2015		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Common Stocks
United States	$	—	$	—	$	—		$	(1,934	)	$	3,266
Bonds and Notes
Non-Convertible Bonds
United States		171,786		4,292		—			(57,099	)		—
Warrants		—		—		—			3,776			—
Total	$	171,786	$	4,292	$	—		$	(55,257	)	$	3,266
Investments in Securities	Sales		Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2016			Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2016
Common Stocks
United States	$	—	$	—	$	—		$	1,332		$	(1,934	)
Bonds and Notes
Non-Convertible Bonds
United States		—		164,300		(164,657	)		118,622			(57,099	)
Warrants		—		—		—			3,776			3,776
Total	$	—	$	164,300	$	(164,657	)	$	123,730		$	(55,257	)

A debt security valued at $164,300 was transferred from Level 2 to Level 3 during the period ended September 30, 2016. At September 30, 2015, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2016, this security was valued at fair value as determined in good faith by the Fund’s adviser as an independent pricing service did not provide a reliable price for the security.

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Notes to Financial Statements (continued)

September 30, 2016

A debt security valued at $164,657 was transferred from Level 3 to Level 2 during the period ended September 30, 2016. At September 30, 2015, this security was valued at fair value as determined in good faith by the Fund’s investment adviser as an independent pricing service did not provide a reliable price for the security. At September 30, 2016, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

All transfers are recognized at the beginning of the reporting period.

4.  Derivatives.   Derivative instruments are defined as financial instruments whose value and performance are based on the value and performance of an underlying asset, reference rate or index. Derivative instruments that Global Equity and Income Fund used during the period include forward foreign currency contracts.

Global Equity and Income Fund is subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. The Fund may enter into forward foreign currency contracts for hedging purposes to protect the value of the Fund’s holdings of foreign securities. The Fund may also use forward foreign currency contracts to gain exposure to foreign currencies, regardless of whether securities denominated in such currencies are held in the Fund. During the year ended September 30, 2016, the Fund engaged in forward foreign currency transactions for hedging purposes and to gain exposure to foreign currencies.

The following is a summary of derivative instruments for Global Equity and Income Fund as of September 30, 2016, as reflected within the Statements of Assets and Liabilities

Assets	Unrealized appreciation on forward foreign currency contracts
Over-the-counter asset derivatives
Foreign exchange contracts	$	603,201
Liabilities	Unrealized depreciation on forward foreign currency contracts
Over-the-counter liability derivatives
Foreign exchange contracts	$	(286,333	)

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Notes to Financial Statements (continued)

September 30, 2016

Transactions in derivative instruments for Global Equity and Income Fund during the year ended September 30, 2016 as reflected within the Statements of Operations were as follows:

Net Realized Gain (Loss) on:	Foreign currency transactions1
Foreign exchange contracts	$	1,393,445

Net Change in Unrealized Appreciation (Depreciation) on:	Foreign currency translations1
Foreign exchange contracts	$	98,070

¹  Represents realized gain and change in unrealized appreciation (depreciation), respectively, for forward foreign currency contracts during the period. Does not include other foreign currency gains or losses included in the Statements of Operations.

As the Fund values its derivatives at fair value and recognizes changes in fair value through the Statement of Operations, it does not qualify for hedge accounting under authoritative guidance for derivative instruments. The Fund’s investments in derivatives may represent an economic hedge; however, they are considered to be non-hedge transactions for the purpose of these disclosures.

The volume of forward foreign currency contract activity, as a percentage of net assets, for Global Equity and Income Fund, based on gross month-end notional amounts outstanding during the period, including long and short positions at absolute value, was as follows for the year ended September 30, 2016:

Global Equity and Income Fund	Forwards
Average Notional Amount Outstanding		6.60	%
Highest Notional Amount Outstanding		7.27	%
Lowest Notional Amount Outstanding		5.77	%
Notional Amount Outstanding as of September 30, 2016		7.06	%

Notional amounts outstanding at the end of the prior period are included in the average notional amount outstanding.

Unrealized gain and/or loss on open forwards is recorded in the Statements of Assets and Liabilities. The aggregate notional values of forward contracts are not recorded in the Statements of Assets and Liabilities, and therefore are not included in the Fund’s net assets.

Global Equity and Income Fund enters into over-the-counter derivatives, including forward foreign currency contracts, pursuant to International Swaps and Derivatives Association, Inc. (“ISDA”) agreements negotiated between the Fund and its counterparties. ISDA agreements typically contain, among other things, terms for the posting of collateral and master netting provisions in the event of a default or other termination event. Collateral is posted by the Fund or the counterparty to the extent of

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September 30, 2016

the net mark-to-market exposure to the other party of all open contracts under the agreement, subject to minimum transfer requirements. Master netting provisions allow the Fund and the counterparty, in the event of a default or other termination event, to offset amounts owed by each related to derivative contracts, including any posted collateral, to one net amount payable by either the Fund or the counterparty. The Fund’s ISDA agreements typically contain provisions that allow a counterparty to terminate open contracts early if the NAV of the Fund declines beyond a certain threshold. For financial reporting purposes, the Fund does not offset derivative assets and liabilities, and any related collateral received or pledged, on the Statements of Assets and Liabilities.

As of September 30, 2016, gross amounts of over-the-counter derivative assets and liabilities not offset in the Statements of Assets and Liabilities and the related net amounts after taking into account master netting arrangements, by counterparty, are as follows:

Global Equity and Income Fund

Counterparty	Gross Amounts of Assets			Offset Amount			Net Asset Balance			Collateral (Received)/ Pledged			Net Amount
Citibank N.A.	$	3,313		$	—		$	3,313		$	—		$	3,313
Credit Suisse International		261,528			(219,122	)		42,406			—			42,406
Morgan Stanley & Co.		1,176			(1,176	)		—			—			—
UBS AG		337,184			(61,755	)		275,429			(275,429	)		—
	$	603,201		$	(282,053	)	$	321,148		$	(275,429	)	$	45,719
Counterparty	Gross Amounts of Liabilities			Offset Amount			Net Liability Balance			Collateral (Received)/ Pledged			Net Amount
Credit Suisse International	$	(219,122	)	$	219,122		$	—		$	—		$	—
Morgan Stanley & Co.		(5,456	)		1,176			(4,280	)		4,280			—
UBS AG		(61,755	)		61,755			—			—			—
	$	(286,333	)	$	282,053		$	(4,280	)	$	4,280		$	—

The actual collateral received or pledged, if any, may exceed the amounts shown in the table due to overcollateralization. Timing differences may exist between when contracts under the ISDA agreements are marked-to-market and when collateral moves. The ISDA agreements include tri-party control agreements under which collateral is held for the benefit of the secured party at a third party custodian, State Street Bank.

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September 30, 2016

Counterparty risk is managed based on policies and procedures established by the Fund’s adviser. Such policies and procedures may include, but are not limited to, minimum counterparty credit rating requirements, monitoring of counterparty credit default swap spreads and posting of collateral. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the Fund’s aggregated unrealized gains and the amount of any collateral pledged to the counterparty, which may be offset by any collateral posted to the Fund by the counterparty. ISDA master agreements can help to manage counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under these ISDA agreements, collateral is routinely transferred if the total net exposure in respect of certain transactions, net of existing collateral already in place, exceeds a specified amount (typically $250,000, depending on the counterparty). With exchange-traded derivatives, there is minimal counterparty credit risk to the Fund because the exchange’s clearinghouse, as counterparty to these instruments, stands between the buyer and the seller of the contract. Credit risk still exists in exchange-traded derivatives with respect to initial and variation margin that is held in a broker’s customer accounts. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro rata basis across all of the broker’s customers, potentially resulting in losses to the Fund. Based on balances reflected on the Fund’s Statement of Assets and Liabilities, the following table shows (i) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the applicable Fund would incur if parties (including OTC derivative counterparties and brokers holding margin for exchange-traded derivatives) to the relevant financial instruments failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the Fund, and (ii) the amount of loss that the applicable Fund would incur after taking into account master netting provisions pursuant to ISDA agreements, as of September 30, 2016:

Fund	Maximum Amount of Loss - Gross		Maximum Amount of Loss - Net
Global Equity and Income Fund	$	655,188	$	93,426

These amounts include cash received as collateral for Global Equity and Income Fund of $360,000.

5.  Purchases and Sales of Securities.  For the year ended September 30, 2016, 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 Equity and Income Fund	$	724,555,203	$	479,360,444
Growth Fund		2,767,080,632		287,562,690
Value Fund		200,588,365		507,588,420

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Notes to Financial Statements (continued)

September 30, 2016

For the year ended September 30, 2016, purchases and sales of U.S. Government/Agency securities by the Global Equity and Income Fund were $84,698,200 and $115,881,283, respectively.

6. Management Fees and Other Transactions with Affiliates.

a.  Management Fees.  Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to each Fund. Separate management agreements for each Fund in effect for the year ended September 30, 2016, provided for fees at the following annual percentage rates of each Fund’s average daily net assets:

	Percentage of Average Daily Net Assets
Fund	First $2 billion			Over $2 billion
Global Equity and Income Fund		0.75	%		0.73	%
Growth Fund		0.50	%		0.50	%
Value Fund		0.50	%		0.50	%

Loomis Sayles has given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until January 31, 2017, may be terminated before then only with the consent of the Funds’ Board of Trustees and are reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.

For the year ended September 30, 2016 (period ending close of business January 11, 2016, for Class B) 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 N			Class Y			Admin Class
Global Equity and Income Fund		1.25	%		—			2.00	%		—			1.00	%		—
Growth Fund		1.25	%		2.00	%		2.00	%		0.95	%		1.00	%		—
Value Fund		1.10	%		1.85	%		1.85	%		0.80	%		0.85	%		1.35	%

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September 30, 2016

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

For the year ended September 30, 2016, the management fees for each Fund were as follows:

Fund	Management Fees		Percentage of Average Daily Net Assets
Global Equity and Income Fund	$	10,746,920		0.75	%
Growth Fund		13,482,702		0.50	%
Value Fund		7,041,043		0.50	%

No expenses were recovered for any of the Funds during the year ended September 30, 2016 under the terms of the expense limitation agreements.

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.  Service and Distribution Fees.  NGAM Distribution, which is a wholly-owned subsidiary of Natixis US, has entered into a distribution agreement with the Trust. Pursuant to this agreement, NGAM Distribution serves as principal underwriter of the Funds of the Trust.

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

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

Under the Class B (if applicable) and Class C Plans, each Fund pays (or paid) NGAM Distribution a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Class B (if applicable) and Class C shares, as

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September 30, 2016

compensation for services provided by NGAM Distribution in providing personal services to investors in Class B (if applicable) and Class C shares and/or the maintenance of shareholder accounts.

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

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

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

For the year ended September 30, 2016, the service and distribution fees for each Fund were as follows:

	Service Fees								Distribution Fees
Fund	Class A		Class B		Class C		Admin Class		Class B		Class C		Admin Class
Global Equity and Income Fund	$	674,991	$	—	$	1,048,362	$	—	$	—	$	3,145,090	$	—
Growth Fund		1,023,599		8		188,723		—		22		566,168		—
Value Fund		354,954		30		32,389		156,602		90		97,165		156,602

c.  Administrative Fees.  NGAM Advisors, L.P. (“NGAM Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. NGAM Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts and NGAM Advisors, each Fund pays NGAM 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 and Loomis Sayles Funds Trusts, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0350% of the next $30 billion and 0.0325% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts and Loomis Sayles Funds Trusts of $10 million, which is reevaluated on an annual basis.

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September 30, 2016

For the year ended September 30, 2016, the administrative fees for each Fund were as follows:

Fund	Administrative Fees
Global Equity and Income Fund	$	631,931
Growth Fund		1,191,159
Value Fund		620,523

d.  Sub-Transfer Agent Fees.   NGAM Distribution has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Funds and has agreed to compensate the intermediaries for providing those services. Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. These services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly at the Funds’ transfer agent. Accordingly, the Funds have agreed to reimburse NGAM Distribution for all or a portion of the servicing fees paid to these intermediaries. The reimbursement amounts (sub-transfer agent fees) paid to NGAM Distribution are subject to a current per-account equivalent fee limit approved by the Funds’ Board of Trustees, which is based on fees for similar services paid to the Funds’ transfer agent and other service providers. Class N shares do not bear such expenses.

For the year ended September 30, 2016, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:

Fund	Sub-Transfer Agent Fees
Global Equity and Income Fund	$	1,145,652
Growth Fund		2,344,001
Value Fund		892,030

As of September 30, 2016, the Funds owe NGAM Distribution the following reimbursements for sub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as payable to distributor):

Fund	Reimbursements of Sub-Transfer Agent Fees
Global Equity and Income Fund	$	14,671
Growth Fund		47,712
Value Fund		10,227

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Notes to Financial Statements (continued)

September 30, 2016

Sub-transfer agent fees attributable to Class A, Class B, Class C, Class Y, and Admin Class are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes.

e.  Commissions.  Commissions (including CDSCs) on Fund shares retained by NGAM Distribution during the year ended September 30, 2016, were as follows:

Fund	Commissions
Global Equity and Income Fund	$	129,417
Growth Fund		161,960
Value Fund		52,639

f.  Trustees Fees and Expenses.  The Trust does not pay any compensation directly to its officers or Trustees who are directors, officers or employees of NGAM Advisors, NGAM Distribution, Natixis US or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $325,000. 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 $155,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, the chairperson of the Contract Review Committee and the chairperson of the Audit Committee each receive an additional retainer fee at the annual rate of $17,500. The chairperson of the Governance Committee receives an additional retainer fee at the annual rate of $10,000. Each Contract Review Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts and Loomis Sayles Funds Trusts based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2016, the Chairperson of the Board received a retainer fee at the annual rate of $300,000 and each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $130,000. The chairperson of the Governance Committee received an additional retainer fee at the annual rate of $5,000. All other Trustee fees remained unchanged.

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

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Notes to Financial Statements (continued)

September 30, 2016

on theoretical investments of deferred amounts, on the normal payment dates, in certain funds of the Natixis Funds Trusts and Loomis Sayles Funds Trusts as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts and Loomis Sayles Funds Trusts, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees in the Statements of Assets and Liabilities.

g.  Affiliated Ownership.  As of September 30, 2016, Loomis Sayles Funded Pension Plan and Trust (“Pension Plan”) and Loomis Sayles Employees’ Profit Sharing Retirement Plan (“Retirement Plan”) held shares of the Funds representing the following percentages of the Fund’s net assets:

Fund	Pension Plan			Retirement Plan			Total Affiliated Ownership
Global Equity and Income Fund		1.06	%		1.00	%		2.06	%
Growth Fund		0.32	%		0.84	%		1.16	%
Value Fund		1.13	%		1.87	%		3.00	%

Investment activities of affiliated shareholders could have material impacts on the Funds.

h.  Reimbursement of Transfer Agent Fees and Expenses.  NGAM Advisors has given a binding contractual undertaking to the Growth Fund to reimburse any and all transfer agency expenses for the Fund’s Class N shares. This undertaking is in effect through January 31, 2017 and is not subject to recovery under the expense limitation agreement described above.

For the year ended September 30, 2016, NGAM Advisors reimbursed the Fund $205 for transfer agency expenses related to Class N shares.

i.  Payment by Affiliates.  For the year ended September 30, 2016, Loomis Sayles reimbursed Global Equity and Income Fund $49,212 in connection with a trading error.

7.  Class-Specific Transfer Agent Fees and Expenses.   For the year ended September 30, 2016, the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):

	Transfer Agent Fees and Expenses
Fund	Class A		Class B		Class C		Class N		Class Y		Admin Class
Growth Fund	$	392,003	$	3	$	70,321	$	205	$	2,055,757	$	—
Value Fund		168,818		12		15,270		1,301		727,407		73,541

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Notes to Financial Statements (continued)

September 30, 2016

Transfer agent fees and expenses attributable to Class A, Class B, Class C, Class Y and Admin Class are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes. Transfer agent fees and expenses attributable to Class N are allocated to Class N.

The Global Equity and Income Fund allocates transfer agent fees and expenses on a pro rata basis based on the relative net assets of each class to the total net assets of those classes.

8.  Line of Credit.  Effective April 14, 2016, the Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, entered into a 364-day, $400,000,000 syndicated, committed, unsecured line of credit with Citibank, N.A. to be used for temporary or emergency purposes only. Any one Fund may borrow up to the full $400,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate do not exceed the $400,000,000 limit at any time) subject to each Fund’s investment restrictions. Interest is charged to the Funds at a rate equal to the greater of the eurodollar or the federal funds rate plus 1.00%. In addition, a commitment fee of 0.10% per annum, payable on the last business day of each month, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit. The Funds paid an arrangement fee, an upfront fee, and other fees in connection with the new line of credit agreement, which are being amortized over a period of 364 days and are reflected as miscellaneous expenses on the Statements of Operations. The unamortized balance is reflected as prepaid expenses on the Statements of Assets and Liabilities.

Prior to April 14, 2016 each Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, participated in a $150,000,000 committed unsecured line of credit provided by State Street Bank. Any one Fund was able to borrow up to the full $150,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate do not exceed the $150,000,000 limit at any time). Interest was charged to each participating Fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the year ended September 30, 2016, none of the Funds had borrowings under these agreements.

9.  Brokerage Commission Recapture.  Each Fund has entered into agreements with certain brokers whereby the brokers will rebate a portion of brokerage commissions. All amounts rebated by the brokers are returned to the Funds under such agreements

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September 30, 2016

and are included in realized gains on investments on the Statements of Operations. For the year ended September 30, 2016, amounts rebated under these agreements were as follows:

Fund	Rebates
Global Equity and Income Fund	$	33,951
Growth Fund		98,367
Value Fund		66,530

10.  Concentration of Risk.  Each Fund’s investments in foreign securities are subject to foreign currency fluctuations, higher volatility than U.S. securities, varying degrees of regulation and limited liquidity. Greater political, economic, credit and information risks are also associated with foreign securities.

11.  Concentration of Ownership.  From time to time, a Fund may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of such accounts could have material impacts on the Funds. As of September 30, 2016, based on management’s evaluation of the shareholder account base, the Funds had accounts representing controlling ownership of more than 5% of the Fund’s total outstanding shares. The number of such accounts, based on accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings were as follows:

Fund	Number of 5% Account Holders		Percentage of Ownership
Global Equity and Income Fund		—		—
Growth Fund		3		22.40	%
Value Fund		2		34.88	%

Omnibus shareholder accounts for which NGAM Advisors understands that the intermediary has discretion over the underlying shareholder accounts or investment models where a shareholder account may be invested for a non-discretionary customer are included in the table above. For other omnibus accounts, the Funds do not have information on the individual shareholder accounts underlying the omnibus accounts; therefore, there could be other 5% shareholders in addition to those disclosed in the table above.

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12.  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, 2016					Year Ended September 30, 2015
Global Equity and Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	6,518,060		$	118,574,424		4,329,411		$	83,633,755
Issued in connection with the reinvestment of distributions	577,893			10,419,401		543,357			10,198,816
Redeemed	(5,833,275	)		(106,983,972	)	(3,512,804	)		(67,808,443	)
Net change	1,262,678		$	22,009,853		1,359,964		$	26,024,128
Class C
Issued from the sale of shares	5,118,112		$	92,412,220		5,429,765		$	103,964,870
Issued in connection with the reinvestment of distributions	632,650			11,305,458		555,784			10,348,688
Redeemed	(4,961,383	)		(89,655,498	)	(3,679,631	)		(70,272,069	)
Net change	789,379		$	14,062,180		2,305,918		$	44,041,489
Class Y
Issued from the sale of shares	20,904,782		$	383,282,778		11,734,160		$	227,617,351
Issued in connection with the reinvestment of distributions	1,658,138			30,028,870		1,570,256			29,583,620
Redeemed	(11,843,072	)		(215,508,066	)	(12,553,471	)		(243,060,865	)
Net change	10,719,848		$	197,803,582		750,945		$	14,140,106
Increase (decrease) from capital share transactions	12,771,905		$	233,875,615		4,416,827		$	84,205,723

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12.  Capital Shares (continued).

	Year Ended September 30, 2016					Year Ended September 30, 2015
Growth Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	56,665,269		$	606,177,061		7,627,613		$	76,862,467
Issued in connection with the reinvestment of distributions	45,231			484,871		32,331			321,374
Redeemed	(8,031,026	)		(87,510,712	)	(2,055,747	)		(20,446,591	)
Net change	48,679,474		$	519,151,220		5,604,197		$	56,737,250
Class B(a)
Issued from the sale of shares	—		$	—		342		$	3,298
Redeemed	(2,435	)		(23,311	)	(46,536	)		(434,022	)
Net change	(2,435	)	$	(23,311	)	(46,194	)	$	(430,724	)
Class C
Issued from the sale of shares	7,094,313		$	72,448,712		1,853,819		$	17,439,832
Redeemed	(1,673,262	)		(16,737,009	)	(738,782	)		(6,915,130	)
Net change	5,421,051		$	55,711,703		1,115,037		$	10,524,702
Class N
Issued from the sale of shares	4,862,039		$	58,891,254		—		$	—
Issued in connection with the reinvestment of distributions	2,429			27,613		1			7
Redeemed	(92,271	)		(1,120,395	)	—			—
Net change	4,772,197		$	57,798,472		1		$	7
Class Y
Issued from the sale of shares	211,348,667		$	2,459,280,818		52,581,221		$	564,535,215
Issued in connection with the reinvestment of distributions	485,301			5,527,574		466,174			4,918,135
Redeemed	(48,951,026	)		(574,527,325	)	(18,517,808	)		(199,164,033	)
Redeemed in-kind (Note 13)	—			—		(23,009,100	)		(238,604,371	)
Net change	162,882,942		$	1,890,281,067		11,520,487		$	131,684,946
Increase (decrease) from capital share transactions	221,753,229		$	2,522,919,151		18,193,528		$	198,516,181

(a) On January 11, 2016, Class B shares were converted into Class A shares. See Note 1 of Notes to Financial Statements.

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12.  Capital Shares (continued).

	Year Ended September 30, 2016					Year Ended September 30, 2015
Value Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	5,405,331		$	108,937,619		1,738,963		$	46,569,244
Issued in connection with the reinvestment of distributions	1,230,998			24,706,134		2,328,240			61,605,209
Redeemed	(2,577,346	)		(52,841,200	)	(19,246,045	)		(514,711,447	)
Net change	4,058,983		$	80,802,553		(15,178,842	)	$	(406,536,994	)
Class B(a)
Issued from the sale of shares	—		$	—		107		$	2,889
Issued in connection with the reinvestment of distributions	370			7,734		1,136			30,982
Redeemed	(2,824	)		(60,701	)	(22,159	)		(612,219	)
Net change	(2,454	)	$	(52,967	)	(20,916	)	$	(578,348	)
Class C
Issued from the sale of shares	122,952		$	2,535,303		168,212		$	4,489,770
Issued in connection with the reinvestment of distributions	113,598			2,260,606		46,757			1,229,708
Redeemed	(311,075	)		(6,355,498	)	(181,426	)		(4,774,431	)
Net change	(74,525	)	$	(1,559,589	)	33,543		$	945,047
Class N
Issued from the sale of shares	6,545,776		$	134,293,918		12,753,984		$	350,880,527
Issued in connection with the reinvestment of distributions	6,367,068			127,787,057		2,770,273			73,439,957
Redeemed	(11,927,955	)		(242,790,215	)	(6,232,756	)		(161,942,813	)
Net change	984,889		$	19,290,760		9,291,501		$	262,377,671
Class Y
Issued from the sale of shares	6,678,218		$	137,583,491		7,557,970		$	201,571,556
Issued in connection with the reinvestment of distributions	6,872,653			138,277,784		4,074,597			108,180,554
Redeemed	(15,223,159	)		(315,369,325	)	(28,985,641	)		(786,537,213	)
Net change	(1,672,288	)	$	(39,508,050	)	(17,353,074	)	$	(476,785,103	)
Admin Class
Issued from the sale of shares	303,761		$	6,542,562		3,750,246		$	100,404,741
Issued in connection with the reinvestment of distributions	972,040			19,256,108		8			209
Redeemed	(4,819,733	)		(96,326,889	)	(173,819	)		(4,485,251	)
Net change	(3,543,932	)	$	(70,528,219	)	3,576,435		$	95,919,699
Increase (decrease) from capital share transactions	(249,327	)	$	(11,555,512	)	(19,651,353	)	$	(524,658,028	)

(a) On January 11, 2016, Class B shares were converted into Class A shares. See Note 1 of Notes to Financial Statements.

95  |

Notes to Financial Statements (continued)

September 30, 2016

13.  Redemption In-Kind.  In certain circumstances, a Fund may distribute portfolio securities rather than cash as payment for redemption of Fund shares (redemption in-kind). For financial reporting purposes, the Fund will recognize a gain on in-kind redemptions to the extent the value of the distributed securities on the date of redemption exceeds the cost of those securities; the Fund will recognize a loss if the cost exceeds value. Gains and losses realized on redemptions in-kind are not recognized for tax purposes, and are re-classified from realized gain (loss) to paid-in-capital.

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Report of Independent Registered Public Accounting Firm

To the Trustees of Loomis Sayles Funds Trust II and Shareholders of Loomis Sayles Global Equity and Income Fund, Loomis Sayles Growth 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 Equity and Income Fund, Loomis Sayles Growth Fund, and Loomis Sayles Value Fund, each a series of Loomis Sayles Funds Trust II (collectively, the “Funds”) at September 30, 2016, 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 audit 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, 2016 by correspondence with the custodian, agent banks and brokers, provide a reasonable basis for our opinion expressed above.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2016

97  |

2016 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction.  For the fiscal year ended September 30, 2016, 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 Equity and Income		24.30	%
Growth		97.49	%
Value		100.00	%

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, 2016, unless subsequently determined to be different.

Fund	Amount
Global Equity and Income	$	57,954,573
Value		303,533,014

Qualified Dividend Income.  For the fiscal year ended September 30, 2016, the Funds below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2016, complete information will be reported in conjunction with Form 1099-DIV.

Fund

Global Equity and Income

Growth

Value

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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 Funds’ Statement(s) of Additional Information include additional information about the trustees of the Trust and are available by calling Natixis Funds at 800-225-5478.

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES
Kenneth A. Drucker (1945)	Trustee since 2008 Chairperson of the Audit Committee and Governance Committee Member	Retired	44 None	Significant experience on the Board and on the boards of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)
Edmond J. English (1953)	Trustee since 2013 Audit Committee Member	Chief Executive Officer of Bob’s Discount Furniture (retail)	44 Director, Burlington Stores, Inc. (retail); Formerly, Director, BJ’s Wholesale Club (retail)	Experience on the Board and significant experience on the boards of other business organizations (including retail companies and a bank); executive experience (including at a retail company)

99  |

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
Richard A. Goglia (1951)	Trustee since 2015 Audit Committee Member	Retired; formerly Vice President and Treasurer of Raytheon Company (defense)	44 None	Experience on the Board and executive experience (including his role as vice president and treasurer of a defense company and experience at a financial services company)
Wendell J. Knox (1948)	Trustee since 2009 Contract Review Committee Member and Governance Committee Member	Director of Abt Associates Inc. (research and consulting)	44 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the boards of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

|  100

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
Martin T. Meehan (1956)	Trustee since 2012 Contract Review Committee Member	President, University of Massachusetts; formerly, Chancellor and faculty member, University of Massachusetts Lowell	44 None	Experience on the Board and on the boards of other business organizations; experience as President of the University of Massachusetts; government experience (including as a member of the U.S. House of Representatives); academic experience
Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee since 2003 Ex Officio member of the Audit Committee, the Contract Review Committee and the Governance Committee	President, Strategic Advisory Services (management consulting)	44 Formerly, Director, AES Corporation (international power company); formerly, Director, Verizon Communications (telecommunications company)	Significant experience on the Board and on the boards of other business organizations (including at a telecommunications company, an international power company and a specialty chemicals corporation); executive experience (including at a management consulting company)

101  |

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
James P. Palermo (1955)	Trustee since 2016 Contract Review Committee Member	Founding Partner, Breton Capital Management, LLC (private equity); formerly, Chief Executive Officer of Global Client Management of The Bank of New York Mellon Corporation	44 None	Experience on the Board; financial services industry and executive experience (including roles as chief executive officer of client management and asset servicing for a banking and financial services company)
Erik R. Sirri (1958)	Trustee since 2009 Audit Committee Member	Professor of Finance at Babson College	44 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist
Peter J. Smail (1952)	Trustee since 2009 Chairperson of the Contract Review Committee and Governance Committee Member	Retired	44 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

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Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
Cynthia L. Walker (1956)	Trustee since 2005 Chairperson of the Governance Committee and Contract Review Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine	44 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)
INTERESTED TRUSTEES
Kevin P. Charleston3 (1965) One Financial Center Boston, MA 02111	Trustee since 2015	President, Chief Executive Officer and Director; formerly, Chief Financial Officer, Loomis, Sayles & Company, L.P.	44 None	Experience on the Board; continuing service as President, Chief Executive Officer and Director of Loomis, Sayles & Company, L.P.
David L. Giunta4 (1965)	Trustee since 2011 President since 2008 and Chief Executive Officer since 2015	President and Chief Executive Officer, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.	44 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer of NGAM Advisors, L.P.
John T. Hailer5 (1960)	Trustee since 2003	President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.	44 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

103  |

Trustee and Officer Information

¹  Each trustee serves until retirement, resignation or removal from the Board. The current retirement age is 75. The position of Chairperson of the Board is appointed for a three-year term. Ms. Moose was appointed to serve an additional three-year term as the Chairperson of the Board on December 13, 2013.

²  The trustees of the Trusts serve as trustees of a fund complex that includes all series of the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV and Gateway Trust (collectively, the “Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (collectively, the “Loomis Sayles Funds Trusts”) and Natixis ETF Trust (collectively, the “Fund Complex”).

³  Mr. Charleston is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President and Chief Executive Officer of Loomis, Sayles & Company, L.P.

⁴  Mr. Giunta is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President and Chief Executive Officer of NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

⁵ Mr. Hailer is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

Name and Year of Birth	Position(s) Held with the Trust	Term of Office1 and Length of Time Served	Principal Occupation(s) During Past 5 Years2
OFFICERS OF THE TRUST
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.
Russell L. Kane (1969)	Secretary, Clerk and Chief Legal Officer	Since July 2016	Executive Vice President, General Counsel, Secretary and Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.; formerly, Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

|  104

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trust	Term of Office1 and Length of Time Served	Principal Occupation(s) During Past 5 Years2
OFFICERS OF THE TRUST continued
Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, NGAM Advisors, L.P. and NGAM Distribution, L.P.
Rosa Licea-Mailloux (1976)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Since July 2016	Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.; formerly, Associate General Counsel, NGAM Distribution, L.P.

¹  Each officer of the Trust serves for an indefinite term in accordance with the Trust’s current by-laws until the date his or her successor is elected and qualified, or until he or she sooner dies, retires, is removed or becomes disqualified.

²  Each person listed above, except as noted, holds the same position(s) with the Fund Complex. Mr. Fuss is not an officer of the Natixis Funds Trusts. Previous positions during the past five years with NGAM Distribution, L.P., NGAM Advisors, L.P. or Loomis, Sayles & Company, L.P. are omitted, if not materially different from a trustee’s or officer’s current position with such entity.

105  |

Loomis Sayles Small Cap Growth Fund

Loomis Sayles Small Cap Value Fund

Loomis Sayles Small/Mid Cap Growth Fund

Annual Report

September 30, 2016

TABLE OF CONTENTS
Portfolio Review	1
Portfolio of Investments	22
Financial Statements	41
Notes to Financial Statements	53

LOOMIS SAYLES SMALL CAP GROWTH FUND

Managers	Symbols
Mark F. Burns, CFA®	Institutional Class	LSSIX
John J. Slavik, CFA®	Retail Class	LCGRX
	Class N	LSSNX

Investment Objective

The Fund’s investment objective is long-term capital growth from investments in common stocks or other equity securities.

Market Conditions

Overall, U.S. equity markets were generally strong for the 12-month period, benefiting from the robust performance off the market bottom in February 2016 and following the two-day Brexit vote-inspired selloff in June. Within the small-cap segment of the market, the smallest companies and the lowest-quality companies (as measured by return on equity) were the strongest performers in the February market rebound. The third quarter of 2016 was a particularly challenging market environment for the fund, as the highest beta (high risk/high reward potential) names significantly outperformed the lowest beta names. Among small-cap stocks, value stocks significantly outperformed growth stocks.

Performance Results

For the 12 months ended September 30, 2016, Institutional Class shares of Loomis Sayles Small Cap Growth Fund returned 6.92%. The fund underperformed its benchmark, the Russell 2000^® Growth Index, which returned 12.12%.

Explanation of Fund Performance

Stock selection in the information technology, industrials and healthcare sectors primarily accounted for the fund’s underperformance. Given the fund’s strategy, the market environment during the third quarter of 2016 created a significant headwind.

In terms of individual holdings, the top contributor to fund performance was financials company MarketAxess Holdings. The company continued to steadily gain market share in electronic bond trading, and its earnings grew. In addition, the company remains significantly underpenetrated in the fixed-income market, its biggest market opportunity. In 2016, MarketAxess launched electronic trading for municipal bonds, a market no other firm has been able to penetrate electronically. Following two years of increased investments, MarketAxess is now leveraging those efforts and generating robust incremental margins.

Wix.com, a website development company for small and medium businesses, also was a top-performing holding. The company demonstrated consistently strong revenue growth by converting free users to paid subscribers and retaining their business. The mid-year release of its Artificial Design Intelligence (ADI) platform generated a lot of excitement as an even easier and more intuitive way to create a website, and it’s positioned to aid

1  |

conversion in the future. Another top contributor was technology company Intersil, which announced it was being acquired by Rensas, a Japanese semiconductor company.

A position in Demandware, a software service provider that powers e-commerce for large brands and retailers, was a main detractor. The company was a multi-year holding for the fund, but in late 2015 it experienced slowing revenue due to lower same-store sales growth among existing customers. A sharp selloff in software-as-a-service companies in February 2016 triggered our stop loss, and we sold the position.

In addition, a position in Advisory Board Company, a research and software tools company serving the healthcare and education markets, was a primary detractor. A deceleration of growth in the healthcare segment and a delay in the integration of an education acquisition caused the stock to decline, triggering our stop-loss, and we sold the position.

A position in Restoration Hardware Holdings, a rapidly growing home furnishings retail chain, also weighed on fund performance. The company reported disappointing fourth-quarter 2015 earnings due to elevated promotions and supply chain issues. Furthermore, the company changed its pricing strategy, which created uncertainty about future demand trends. The stock price downturn triggered our stop-loss, and we exited the position.

Outlook

As we look forward, we continue to be focused on the underlying business trends of our existing holdings and potential new additions to ensure revenue and earnings growth trends can remain intact, if not improve.

Slow growth continues to be the name of the game for the U.S. economy. U.S. stocks, particularly small-caps, have had quite a strong run since the market bottom in February, and they may need to take a pause in the near term. Volatility remains subdued; however, macro events that lie ahead, including the U.S. election and the Federal Reserve’s actions, may lead to increasing levels of volatility. Earnings growth may continue to be elusive, with potential for positive trends not all that far off. While the outlook may not be terribly clear, we will not attempt to alter our process.

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LOOMIS SAYLES SMALL CAP GROWTH FUND

Hypothetical Growth of $100,000 Investment in Institutional Class Shares

September 30, 2006 through September 30, 2016²

Top Ten Holdings as of September 30, 2016

	Security Name	% of Net Assets
1	Ultimate Software Group, Inc. (The)		1.63%
2	Guidewire Software, Inc.		1.56%
3	MarketAxess Holdings, Inc.		1.53%
4	Bright Horizons Family Solutions, Inc.		1.47%
5	Euronet Worldwide, Inc.		1.44%
6	MKS Instruments, Inc.		1.42%
7	Monolithic Power Systems, Inc.		1.40%
8	WageWorks, Inc.		1.39%
9	Granite Construction, Inc.		1.34%
10	Cynosure, Inc., Class A		1.32%

The portfolio is actively managed and holdings are subject to change. There is no guarantee the Fund continues to invest in the securities referenced. The holdings listed exclude any temporary cash investments.

3  |

Average Annual Total Returns — September 30, 2016²

													Expense Ratios3
	1 year			5 years			10 years			Life of Class N			Gross			Net
Institutional Class (Inception 12/31/96)		6.92	%		14.33	%		9.38	%		—	%		0.94	%		0.94	%
Retail Class (Inception 12/31/96)		6.61			13.99			9.09			—			1.19			1.19
Class N (Inception 2/1/13)		7.05			—			—			10.88			0.83			0.83
Comparative Performance
Russell 2000® Growth Index1		12.12			16.15			8.29			11.53

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit loomissayles.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

¹  Russell 2000^® Growth Index is an unmanaged index that measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000^® companies with higher price-to-book ratios and forecasted growth values.

²  Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

³  As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/17. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

|  4

LOOMIS SAYLES SMALL CAP VALUE FUND

Managers	Symbols
Joseph R. Gatz, CFA®	Institutional Class	LSSCX
Jeffrey Schwartz, CFA®	Retail Class	LSCRX
	Admin Class	LSVAX
	Class N	LSCNX

Investment Objective

The Fund’s investment objective is long-term capital growth from investments in common stocks or other equity securities.

Market Conditions

Stocks generally experienced a sharp downturn from early December through mid-February due to weaker global economic trends, a sharp downturn in oil prices and fears of a premature rate hike from the Federal Reserve (the Fed). Markets recovered steadily off their mid-February lows as global economic fears abated, the Fed delayed further interest rate increases and commodity prices rebounded. Overall, there were significant changes in market leadership during the 12-month period. Growth stock and price momentum leadership in late 2015 gave way to outperformance from higher dividend-yielding utilities and REITs in early 2016. In the final three months of the period, investors showed greater risk tolerance, and small-cap stocks advanced well ahead of large-caps. Technology, healthcare and commodity-sensitive materials stocks outperformed during the final three months, while utilities and REITs lagged. Overall, small-cap stocks generally outperformed large-cap stocks for the entire 12-month period, and small-cap value stocks outperformed small-cap growth stocks.

Performance Results

For the 12 months ended September 30, 2016, Institutional Class shares of Loomis Sayles Small Cap Value Fund returned 16.75%. The fund underperformed its benchmark, the Russell 2000^® Value Index, which returned 18.81%.

Explanation of Fund Performance

Portfolio strategy was consistent with our long-standing approach, employing our broad resources and rigorous research to identify individual companies and securities we believe are inefficiently priced. The fund’s relative performance was strong during the first half of the 12-month period, largely due to stock selection in the consumer discretionary, real estate investment trust (REIT), healthcare and consumer staples sectors. As markets accelerated higher during the second half of the period, fund returns were strong but lagged the index. Stock selection metrics deteriorated as markets strengthened and investors favored higher risk positions. Selection was weakest in market-leading sectors such as technology and materials, and among REITs.

5  |

The fund’s industrials and information technology sectors made the largest positive absolute contributions to performance for the 12-month period. The industrials sector outperformed the benchmark, and our overweight allocation and security selection within the sector led to outperformance relative to the benchmark’s industrial holdings. Information technology was among the strongest-performing sectors in the benchmark for the year, contributing to our favorable absolute return.

The top individual stock contributor was John Bean Technologies, a leading provider of food processing equipment and airport-related equipment. The company reported strong earnings and raised guidance throughout the year, as global demand for food processing equipment remained strong, profit margins steadily improved, and strategic acquisitions expanded the company’s addressable market.

U.S. Silica Holdings also was a main contributor. Our initial investment in the company, which is a leading provider of silica used in energy, industrial and specialty markets, was well timed, near the bottom point of the energy sector selloff in early 2016. We believe the company is well positioned for further recovery in the oilfield services industry. We also believe two recent acquisitions further strengthen the company’s market position and reach.

Littelfuse, a manufacturer of components and circuit protection devices for use in the automotive, electronics and general industrial markets, was a leading contributor. The company reported improving revenue, margin expansion and solid earnings growth throughout the period. The company announced two larger product line acquisitions, which we believe should contribute positively to future results.

All portfolio sectors generated a positive return during the period, but the contributions from materials and utilities were small, and had smaller weightings within the portfolio.

Although technology sector performance was strong in the benchmark, our technology holdings lagged the sector, contributing to the fund’s relative underperformance. In particular, VeriFone Systems and Zebra Technologies generated disappointing performance, offsetting a strong contribution from Advanced Energy Industries.

The materials sector was the strongest-performing sector in the benchmark, rebounding substantially off the February market bottom. Many of the most commodity-sensitive, highly levered materials companies led the rebound, and our stock selection in the sector lagged.

Sector allocation detracted from relative performance. While modest overweights in the outperforming technology and industrials sectors aided fund performance, underweights in utilities and REITs, both of which outperformed the benchmark, detracted from fund performance. Given the highly regulated nature of utilities and the tax-advantaged mandate for REITs to return nearly all free cash flow to shareholders via dividends, we typically find fewer opportunities within these sectors that meet our specific strategy and investment criteria. An overweight allocation in the consumer discretionary sector also detracted from fund performance.

|  6

LOOMIS SAYLES SMALL CAP VALUE FUND

In terms of individual holdings, Libbey Inc. and Metaldyne Performance Group were the primary detractors for the period. Libbey, a manufacturer of glass tableware for the restaurant and retail industries, generates about 40% of revenues outside the U.S. and was hurt by the translation effect of a stronger U.S. dollar relative to other local currencies where its products are sold. The company also experienced increased competition in certain markets during the third quarter of 2015. The company lowered financial guidance as a result of these two factors. During the second quarter of 2016, we eliminated the holding on a thesis break; Libbey’s new CEO, hired in January, announced his intention to redefine Libbey as a consumer products company rather than an industrial manufacturer.

Metaldyne Performance Group is an automotive supplier focused on casting and forging complex metal parts primarily used for power-train and safety-critical components of the vehicle. We reduced our position in the stock near its all-time high during the quarter ending December 31, 2015. In January, we were surprised when management issued a cautious outlook for 2016 despite broader strength in the automotive markets, and we eliminated the position.

Outlook

With major U.S. equity indices at or very close to record highs, the bull market remains intact. However, it is now the second-longest bull market since the 1930s. Bull markets do not die of old age; typically, they struggle when intervening macroeconomic events such as rising inflation cause central banks to tighten monetary policy for an extended period. Currently, we believe the Fed may raise interest rates by 25 basis points by year-end, but all signs point to a very slow, deliberate tightening cycle. These measured expectations have helped prolong the business cycle and hence the rally in stock prices. If we are right that equity earnings are poised to move back to a growth mode later this year and in 2017, we think balanced equity performance across the market cap spectrum and across growth and value styles could result.

7  |

Hypothetical Growth of $100,000 Investment in Institutional Class Shares

September 30, 2006 through September 30, 2016³

See notes to chart on page 9.

Top Ten Holdings as of September 30, 2016

	Security Name	% of Net Assets
1	Littelfuse, Inc.		1.54%
2	Retail Opportunity Investments Corp.		1.35%
3	Cathay General Bancorp		1.34%
4	Post Holdings, Inc.		1.30%
5	KAR Auction Services, Inc.		1.25%
6	Wintrust Financial Corp.		1.22%
7	ALLETE, Inc.		1.16%
8	First Financial Bancorp		1.14%
9	Signature Bank		1.14%
10	IBERIABANK Corp.		1.13%

The portfolio is actively managed and holdings are subject to change. There is no guarantee the Fund continues to invest in the securities referenced. The holdings listed exclude any temporary cash investments.

|  8

LOOMIS SAYLES SMALL CAP VALUE FUND

Average Annual Total Returns — September 30, 2016³

													Expense Ratios4
	1 year			5 years			10 years			Life of Class N			Gross			Net
Institutional Class (Inception 5/13/91)		16.75	%		16.29	%		8.14	%		—	%		0.99	%		0.97	%
Retail Class (Inception 12/31/96)		16.47			15.99			7.87			—			1.24			1.22
Admin Class (Inception 1/2/98)		16.19			15.71			7.59			—			1.47			1.45
Class N (Inception 2/1/13)		16.84			—			—			11.04			0.90			0.90
Comparative Performance
Russell 2000® Value Index1		18.81			15.45			5.78			9.63
Russell 2000® Index2		15.47			15.82			7.07			10.60

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit loomissayles.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

¹  Russell 2000^® Value Index is an unmanaged index that measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000^® companies with lower price-to-book ratios and lower forecasted growth values.

²  Russell 2000^® Index is an unmanaged index that measures the performance of the small-cap segment of the U.S. equity universe.

³  Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

⁴  As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/17. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

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LOOMIS SAYLES SMALL/MID CAP GROWTH FUND

Managers	Symbols
Mark F. Burns, CFA®	Institutional Class	LSMIX
John J. Slavik, CFA®

Investment Objective

The Fund’s investment objective is long-term capital growth from investments in common stocks or other equity securities.

Market Conditions

U.S. equity markets were generally strong for the 12-month period, benefitting from the robust performance off the market bottom in February 2016 and following the two-day Brexit vote-inspired selloff in June. Within the small/mid-cap segment of the market, the smallest companies and the lowest-quality companies (as measured by return on equity) were the strongest performers in the February market rebound. The third quarter of 2016 was a particularly challenging market environment for the fund, as the highest beta (high risk/high reward potential) names significantly outperformed the lowest beta names. Among small/mid-cap stocks, value stocks significantly outperformed growth stocks.

Performance Results

For the 12 months ended September 30, 2016, Institutional Class shares of Loomis Sayles Small/Mid Cap Growth Fund returned 7.51%. The Fund underperformed its benchmark, the Russell 2500^™ Growth Index, which returned 11.02%.

Explanation of Fund Performance

Stock selection in the information technology and consumer discretionary sectors and an underweight position in the materials sector primarily accounted for the fund’s underperformance. Given the fund’s strategy, the market environment during the third quarter of 2016 created a significant headwind.

In terms of individual holdings, the top contributor to fund performance was financials company MarketAxess Holdings. The company continued to steadily gain market share in electronic bond trading, and its earnings grew. In addition, the company remains significantly underpenetrated in the fixed-income trading market, its biggest market opportunity. In 2016, MarketAxess launched electronic trading for municipal bonds, a market no other firm has been able to penetrate electronically. Following two years of increased investments, MarketAxess is now leveraging those efforts and generating robust incremental margins.

In addition, a position in Parsley Energy, an energy exploration company with a compelling acreage position in the Permian Basin, was a top contributor. The company’s prudent management team has kept leverage low and effectively managed the business through the commodity price downturn in 2015. We believe valuation remains reasonable

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LOOMIS SAYLES SMALL/MID CAP GROWTH FUND

relative to current production. The business continues to generate positive cash, and we believe it is well positioned to continue to expand its asset base and production levels for the foreseeable future, all while generating positive cash flow and maintaining low leverage.

Drew Industries, a leading provider of components to the RV industry, also was a main contributor. The stock advanced due to several factors, including favorable industry trends, growing revenues, diversification of the business and strong incremental margin performance given the high fixed-cost nature of the business.

A position in Virtusa, an information technology services and consulting company, was a main detractor. After several years of demonstrating above-industry growth and improving margins, the company acquired another technology services company with low growth and poor profitability. Despite the potential value of the combined entity, results have been disappointing, and we exited the position.

SPS Commerce, a provider of cloud-based supply chain management software, was a primary detractor. The stock declined after SPS reported its sales force contracted in the fourth quarter of 2015 due to a competitive hiring environment and a poorly structured compensation plan. The selloff was brief, and the stock recovered quickly, but the decline triggered our stop-loss and we did not benefit during the recovery. We repurchased the stock.

Palo Alto Networks, a networking security company, also detracted from performance. After a strong upward move in the stock during 2014 and the first half of 2015, elevated expectations and difficult comparisons created concerns about slowing revenue growth. These concerns were exacerbated by industry data showing a firewall spending surge in 2015 that was unlikely to repeat in 2016. The elevated valuation and high share turnover led us to sell the stock, especially given the volatile market conditions at the time of the sale in late January 2016.

Outlook

As we look forward, we continue to be focused on the underlying business trends of our existing holdings and potential new additions to ensure that revenue and earnings growth trends can remain intact, if not improve.

Slow growth continues to be the name of the game for the U.S. economy. U.S. stocks, particularly small-caps, have had quite a strong run since the market bottom in February, and they may need to take a pause in the near term. Volatility remains subdued; however, macro events that lie ahead, including the U.S. election and the Fed’s actions, may lead to increasing levels of volatility. Earnings growth may continue to be elusive, with potential for positive trends not all that far off. While the outlook may not be terribly clear, we will not attempt to alter our process.

11  |

Hypothetical Growth of $100,000 Investment in Institutional Class Shares

June 30, 2015 (inception) through September 30, 2016²

See notes to chart on page 13.

Top Ten Holdings as of September 30, 2016

	Security Name	% of Net Assets
1	WellCare Health Plans, Inc.		1.98%
2	TransDigm Group, Inc.		1.91%
3	Ultimate Software Group, Inc. (The)		1.73%
4	Acuity Brands, Inc.		1.72%
5	Guidewire Software, Inc.		1.65%
6	Nord Anglia Education, Inc.		1.59%
7	B/E Aerospace, Inc.		1.57%
8	Vail Resorts, Inc.		1.53%
9	Blackbaud, Inc.		1.51%
10	Cantel Medical Corp.		1.51%

The portfolio is actively managed and holdings are subject to change. There is no guarantee the Fund continues to invest in the securities referenced. The holdings listed exclude any temporary cash investments.

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LOOMIS SAYLES SMALL/MID CAP GROWTH FUND

Average Annual Total Returns — September 30, 2016²

							Expense Ratios3
	1 year			Life of Fund			Gross			Net
Institutional Class (Inception 6/30/15)		7.51	%		-2.16	%		2.84	%		0.85	%
Comparative Performance
Russell 2500TM Growth Index1		11.02			-0.99

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit loomissayles.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

¹  Russell 2500^TM Growth Index is an unmanaged index that measures the performance of the small-to-mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500^TM companies with higher price-to-book ratios and higher forecasted growth values.

²  Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

³  As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/17. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

1623917.2.1

13  |

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.

All investing involves risk, including the risk of loss. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

Additional Index Information

This document may contain references to third party copyrights, indexes, and trademarks, each of which is the property of its respective owner. Such owner is not affiliated with Natixis Global Asset Management or any of its related or affiliated companies (collectively “NGAM”) and does not sponsor, endorse or participate in the provision of any NGAM services, funds or other financial products.

The index information contained herein is derived from third parties and is provided on an “as is” basis. The user of this information assumes the entire risk of use of this information. Each of the third party entities involved in compiling, computing or creating index information disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to such information.

Proxy Voting Information

A description of the Funds’ proxy voting policies and procedures is available without charge upon request, by calling Loomis Sayles at 800-633-3330; on the Funds’ website, at www.loomissayles.com, and on the Securities and Exchange Commission’s (SEC’s) website at www.sec.gov. Information about how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on 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 800-SEC-0330.

UNDERSTANDING YOUR FUND’S EXPENSES

As a mutual fund shareholder you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service fees (12b-1 fees), and other fund expenses. Certain exemptions may apply. These costs are described in more detail in the Funds’ prospectus. The following examples are intended to help you understand the ongoing costs of investing in the Funds and help you compare these with the ongoing costs of investing in other mutual funds.

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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, 2016 through September 30, 2016. 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 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 to other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of 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 is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. If transaction costs were included, total costs would be higher.

Loomis Sayles Small Cap Growth Fund

Institutional Class	Beginning Account Value 4/1/2016		Ending Account Value 9/30/2016		Expenses Paid During Period* 4/1/2016 – 9/30/2016
Actual		$1,000.00		$1,085.80		$4.90
Hypothetical (5% return before expenses)		$1,000.00		$1,020.30		$4.75
Retail Class
Actual		$1,000.00		$1,084.20		$6.20
Hypothetical (5% return before expenses)		$1,000.00		$1,019.05		$6.01
Class N
Actual		$1,000.00		$1,086.00		$4.33
Hypothetical (5% return before expenses)		$1,000.00		$1,020.85		$4.19
*   Expenses are equal to the Fund’s annualized expense ratio: 0.94%, 1.19% and 0.83% for Institutional Class, Retail Class and Class N, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 366 (to reflect the half-year period).

15  |

Loomis Sayles Small Cap Value Fund

Institutional Class	Beginning Account Value 4/1/2016		Ending Account Value 9/30/2016		Expenses Paid During Period* 4/1/2016 – 9/30/2016
Actual		$1,000.00		$1,095.30		$4.71
Hypothetical (5% return before expenses)		$1,000.00		$1,020.50		$4.55
Retail Class
Actual		$1,000.00		$1,094.20		$6.02
Hypothetical (5% return before expenses)		$1,000.00		$1,019.25		$5.81
Admin Class
Actual		$1,000.00		$1,092.70		$7.32
Hypothetical (5% return before expenses)		$1,000.00		$1,018.00		$7.06
Class N
Actual		$1,000.00		$1,095.90		$4.35
Hypothetical (5% return before expenses)		$1,000.00		$1,020.85		$4.19
*   Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.90%, 1.15%, 1.40% and 0.83% for Institutional Class, Retail Class, Admin Class and Class N, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 366 (to reflect the half-year period).

Loomis Sayles Small/Mid Cap Growth Fund

Institutional Class	Beginning Account Value 4/1/2016		Ending Account Value 9/30/2016		Expenses Paid During Period* 4/1/2016 – 9/30/2016
Actual		$1,000.00		$1,072.80		$4.40
Hypothetical (5% return before expenses)		$1,000.00		$1,020.75		$4.29
*   Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement) of 0.85%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 366 (to reflect the half-year period).

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BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

The Board of Trustees of the Trusts (the “Board”), 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 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. The Loomis Sayles Small/Mid Cap Growth Fund was not included in the most recent annual review as the Fund’s initial board-approved advisory agreement is in effect until July 1, 2017.

In connection with these meetings, the Trustees receive materials that the Funds’ investment adviser (the “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 and categories of funds and the Funds’ performance benchmarks, (ii) information on the Funds’ advisory fees and other expenses, including information comparing the Funds’ expenses to the fees charged to institutional accounts with similar strategies managed by the Adviser, if any, and to those of peer groups of funds and information about applicable expense caps and/or fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Adviser and (v) information obtained through the completion by the Adviser of a questionnaire distributed on behalf of the Trustees. The Board, including the Independent Trustees, also considers other matters such as (i) the Adviser’s financial results and/or 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, if applicable, 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, (vii) information about amounts invested by the Funds’ portfolio managers in the Funds or in similar accounts that they manage and (viii) 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 their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board that provide detailed information about the Funds’ investment performance and the fees charged to the Funds for advisory

17  |

and other services. This information generally includes, among other things, an internal performance rating for each Fund based on agreed-upon criteria, graphs showing each Fund’s performance and fee differentials against each Fund’s peer group/category, 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 similarly categorized funds. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review Committee and/or the full Board, 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 Trustees also receive periodic updates between meetings.

The Board most recently approved the continuation of the Agreements at its meeting held in June 2016. The Agreements were continued for a one-year period for the Funds. In considering whether to approve the continuation of the Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

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.

The Trustees considered not only the advisory services provided by the Adviser to the Funds, but also the monitoring and oversight services provided by NGAM Advisors, L.P. (“NGAM Advisors”). They also considered the administrative services provided by NGAM 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 that compared the performance of the Funds to the performance of peer groups and categories of funds and the Funds’ respective performance benchmarks. In addition, the Trustees also reviewed data prepared by an independent third party that analyzed the performance of the Funds using a variety of performance metrics, including metrics that 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

|  18

of the Loomis Sayles Small Cap Value Fund, the performance of which lagged that of a relevant peer group median and/or category median of funds for certain (although not necessarily all) periods , the Board concluded that other factors relevant to performance supported renewal of the relevant Agreement. These factors included one or more of the following: (1) that the underperformance was attributable, to a significant extent, to investment decisions by the Adviser that were reasonable and consistent with the Fund’s investment objective and policies ; (2) that the Fund’s more recent performance was competitive when compared to relevant performance benchmarks or peer groups; and (3) that the Fund’s long-term performance was competitive when compared to relevant performance benchmarks or peer groups.

The Trustees also considered the Adviser’s performance and reputation generally, the performance of the fund family generally, 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 (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. 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 and the greater regulatory costs associated with the management of such assets. In evaluating each Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund and the need for the Adviser to offer competitive compensation and the potential need to expend additional resources to the extent the Funds grow in size. 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 both of the Funds in this report have expense caps in place, and they considered the amounts waived or reimbursed by the Adviser for the Loomis Sayles Small Cap Value Fund. The Trustees also considered that the Loomis Sayles Small Cap Growth Fund’s current expenses are below the cap.

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

19  |

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 changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser compensation or profitability were issues, 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 fee charged to each of the Funds was 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 or caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense waivers or caps for certain funds. Management explained that a number of factors are taken into account in considering the implementation of breakpoints or an expense cap for a fund, including, among other things, factors such as a fund’s assets, the projected growth of a fund, projected profitability and a fund’s fees and performance. With respect to economies of scale, the Trustees noted that although neither Fund’s management fee was subject to breakpoints, each Fund’s management fee and overall net expense ratio was at or below the median fee for a peer group of funds and that each Fund was subject to an expense cap or waiver. 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 concluded, 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:

• the effect of recent market and economic events on the performance, asset levels and expense ratios of each Fund.

• 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.

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• 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 (if any) generated by the Funds’ securities transactions. The Trustees also considered the benefits to the parent company of NGAM Advisors from the retention of the 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.

• the Trustees’ review and discussion of the Funds’ advisory arrangements in prior years, and management’s record of responding to Trustee concerns raised during the year and in prior years.

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 Agreements should be continued through June 30, 2017.

21  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Growth Fund

Shares		Description	Value (†)
	Common Stocks – 96.8% of Net Assets
		Aerospace & Defense – 1.0%
	262,976	Hexcel Corp.	$	11,649,837
		Auto Components – 1.7%
	176,397	Dorman Products, Inc.(b)		11,271,768
	82,866	Drew Industries, Inc.		8,122,526
				19,394,294
		Banks – 4.2%
	238,013	Chemical Financial Corp.		10,503,514
	234,695	Pinnacle Financial Partners, Inc.		12,692,305
	291,177	PrivateBancorp, Inc.		13,370,848
	314,876	Renasant Corp.		10,589,280
				47,155,947
		Biotechnology – 2.5%
	311,716	Genomic Health, Inc.(b)		9,014,827
	632,176	Ironwood Pharmaceuticals, Inc.(b)		10,038,955
	492,458	Lexicon Pharmaceuticals, Inc.(b)		8,898,716
				27,952,498
		Building Products – 2.2%
	278,380	Apogee Enterprises, Inc.		12,440,802
	216,763	Trex Co., Inc.(b)		12,728,324
				25,169,126
		Capital Markets – 2.5%
	362,036	Financial Engines, Inc.		10,756,090
	104,116	MarketAxess Holdings, Inc.		17,240,568
				27,996,658
		Commercial Services & Supplies – 1.5%
	372,069	Healthcare Services Group, Inc.		14,726,491
	47,349	Team, Inc.(b)		1,548,786
				16,275,277
		Construction & Engineering – 2.2%
	303,105	Granite Construction, Inc.		15,076,443
	475,474	Primoris Services Corp.		9,794,764
				24,871,207
		Distributors – 1.3%
	149,143	Pool Corp.		14,096,996
		Diversified Consumer Services – 3.7%
	247,256	Bright Horizons Family Solutions, Inc.(b)		16,538,954
	292,362	Grand Canyon Education, Inc.(b)		11,808,501
	602,657	Nord Anglia Education, Inc.(b)		13,125,869
				41,473,324

See accompanying notes to financial statements.

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Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Growth Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Diversified Telecommunication Services – 2.3%
	342,998	Cogent Communications Holdings, Inc.	$	12,625,756
	1,245,759	ORBCOMM, Inc.(b)		12,769,030
				25,394,786
		Electrical Equipment – 1.0%
	307,766	Generac Holdings, Inc.(b)		11,171,906
		Electronic Equipment, Instruments & Components – 1.8%
	131,843	IPG Photonics Corp.(b)		10,857,271
	316,456	Orbotech Ltd.(b)		9,370,262
				20,227,533
		Energy Equipment & Services – 0.7%
	145,035	Dril-Quip, Inc.(b)		8,084,251
		Food Products – 2.0%
	713,013	Amplify Snack Brands, Inc.(b)		11,550,810
	327,515	Snyder’s-Lance, Inc.		10,997,954
				22,548,764
		Health Care Equipment & Supplies – 8.2%
	292,046	Cynosure, Inc., Class A(b)		14,876,823
	225,532	Inogen, Inc.(b)		13,509,367
	338,574	Insulet Corp.(b)		13,861,220
	168,892	Integra LifeSciences Holdings Corp.(b)		13,942,035
	83,557	Merit Medical Systems, Inc.(b)		2,029,599
	215,262	Neogen Corp.(b)		12,041,756
	91,601	Nevro Corp.(b)		9,562,228
	512,681	Wright Medical Group NV(b)		12,576,065
				92,399,093
		Health Care Providers & Services – 4.6%
	193,934	Acadia Healthcare Co., Inc.(b)		9,609,430
	358,086	AMN Healthcare Services, Inc.(b)		11,412,201
	151,750	Amsurg Corp.(b)		10,174,837
	413,304	Ensign Group, Inc. (The)		8,319,810
	317,404	HealthEquity, Inc.(b)		12,013,741
				51,530,019
		Health Care Technology – 3.0%
	320,168	Evolent Health, Inc., Class A(b)		7,882,536
	257,841	Medidata Solutions, Inc.(b)		14,377,214
	280,118	Press Ganey Holdings, Inc.(b)		11,316,767
				33,576,517
		Hotels, Restaurants & Leisure – 3.6%
	348,528	Chuy’s Holdings, Inc.(b)		9,737,872

See accompanying notes to financial statements.

23  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Growth Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Hotels, Restaurants & Leisure – continued
	157,359	Popeyes Louisiana Kitchen, Inc.(b)	$	8,362,057
	206,889	Texas Roadhouse, Inc.		8,074,878
	93,451	Vail Resorts, Inc.		14,660,593
				40,835,400
		Household Durables – 2.4%
	209,575	Installed Building Products, Inc.(b)		7,517,455
	221,898	iRobot Corp.(b)		9,759,074
	131,843	Universal Electronics, Inc.(b)		9,817,030
				27,093,559
		Internet & Direct Marketing Retail – 0.6%
	178,292	Wayfair, Inc., Class A(b)		7,019,356
		Internet Software & Services – 7.1%
	287,859	2U, Inc.(b)		11,022,121
	210,523	Benefitfocus, Inc.(b)		8,404,078
	293,468	Criteo S.A., Sponsored ADR(b)		10,303,661
	146,773	Envestnet, Inc.(b)		5,349,876
	147,563	LogMeIn, Inc.		13,338,220
	448,852	Q2 Holdings, Inc.(b)		12,864,098
	426,752	Quotient Technology, Inc.(b)		5,680,069
	309,346	Wix.com Ltd.(b)		13,434,897
				80,397,020
		IT Services – 4.3%
	128,762	EPAM Systems, Inc.(b)		8,924,494
	198,831	Euronet Worldwide, Inc.(b)		16,270,341
	208,785	ExlService Holdings, Inc.(b)		10,405,844
	368,514	InterXion Holding NV(b)		13,347,577
				48,948,256
		Life Sciences Tools & Services – 2.8%
	318,668	Accelerate Diagnostics, Inc.(b)		8,686,890
	234,221	INC Research Holdings, Inc., Class A(b)		10,441,572
	227,823	PRA Health Sciences, Inc.(b)		12,874,278
				32,002,740
		Machinery – 3.0%
	177,266	Astec Industries, Inc.		10,612,915
	98,191	Middleby Corp. (The)(b)		12,138,372
	146,536	RBC Bearings, Inc.(b)		11,207,073
				33,958,360
		Oil, Gas & Consumable Fuels – 2.1%
	132,870	Diamondback Energy, Inc.(b)		12,827,270

See accompanying notes to financial statements.

|  24

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Growth Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Oil, Gas & Consumable Fuels – continued
	160,676	PDC Energy, Inc.(b)	$	10,774,932
				23,602,202
		Pharmaceuticals – 2.8%
	199,147	Dermira, Inc.(b)		6,735,152
	193,697	Medicines Co. (The)(b)		7,310,125
	424,996	Nektar Therapeutics(b)		7,301,431
	414,963	Supernus Pharmaceuticals, Inc.(b)		10,262,035
				31,608,743
		Professional Services – 1.4%
	257,525	WageWorks, Inc.(b)		15,685,848
		Real Estate Management & Development – 0.5%
	212,814	HFF, Inc., Class A		5,892,820
		Semiconductors & Semiconductor Equipment – 6.3%
	324,987	Inphi Corp.(b)		14,140,184
	511,733	Intersil Corp.		11,222,305
	322,459	MKS Instruments, Inc.		16,035,886
	196,698	Monolithic Power Systems, Inc.		15,834,189
	230,667	Silicon Laboratories, Inc.(b)		13,563,220
				70,795,784
		Software – 7.5%
	207,679	Blackbaud, Inc.		13,777,425
	604,947	Callidus Software, Inc.(b)		11,100,778
	190,695	FleetMatics Group PLC(b)		11,437,886
	293,784	Guidewire Software, Inc.(b)		17,621,164
	508,731	RingCentral, Inc., Class A(b)		12,036,576
	89,896	Ultimate Software Group, Inc. (The)(b)		18,373,843
				84,347,672
		Specialty Retail – 1.7%
	149,775	Monro Muffler Brake, Inc.		9,161,737
	624,854	Tile Shop Holdings, Inc.(b)		10,341,333
				19,503,070
		Textiles, Apparel & Luxury Goods – 1.7%
	163,678	Columbia Sportswear Co.		9,287,090
	297,339	Steven Madden Ltd.(b)		10,276,036
				19,563,126
		Thrifts & Mortgage Finance – 1.0%
	435,344	Essent Group Ltd.(b)		11,584,504
		Trading Companies & Distributors – 1.6%
	230,983	Beacon Roofing Supply, Inc.(b)		9,717,455

See accompanying notes to financial statements.

25  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Growth Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Trading Companies & Distributors – continued
	227,823	SiteOne Landscape Supply, Inc.(b)	$	8,185,680
				17,903,135
		Total Common Stocks (Identified Cost $879,197,130)		1,091,709,628
	Principal Amount
	Short-Term Investments – 3.0%
$	34,249,644	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $34,249,730 on 10/03/2016 collateralized by $34,550,000 U.S. Treasury Note, 1.500% due 3/31/2023 valued at $34,938,688 including accrued interest (Note 2 of Notes to Financial Statements)(Identified Cost $34,249,644)		34,249,644
		Total Investments – 99.8% (Identified Cost $913,446,774)(a)		1,125,959,272
		Other assets less liabilities—0.2%		1,826,692
		Net Assets – 100.0%	$	1,127,785,964
	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2016, the net unrealized appreciation on investments based on a cost of $913,910,875 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	$	225,493,195
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(13,444,798	)
		Net unrealized appreciation	$	212,048,397
	(b)	Non-income producing security.
	ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.

See accompanying notes to financial statements.

|  26

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Growth Fund – continued

Industry Summary at September 30, 2016

Health Care Equipment & Supplies	8.2	%
Software	7.5
Internet Software & Services	7.1
Semiconductors & Semiconductor Equipment	6.3
Health Care Providers & Services	4.6
IT Services	4.3
Banks	4.2
Diversified Consumer Services	3.7
Hotels, Restaurants & Leisure	3.6
Machinery	3.0
Health Care Technology	3.0
Life Sciences Tools & Services	2.8
Pharmaceuticals	2.8
Capital Markets	2.5
Biotechnology	2.5
Household Durables	2.4
Diversified Telecommunication Services	2.3
Building Products	2.2
Construction & Engineering	2.2
Oil, Gas & Consumable Fuels	2.1
Food Products	2.0
Other Investments, less than 2% each	17.5
Short-Term Investments	3.0
Total Investments	99.8
Other assets less liabilities	0.2
Net Assets	100.0	%

See accompanying notes to financial statements.

27  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Value Fund

Shares		Description	Value (†)
	Common Stocks – 98.2% of Net Assets
		Aerospace & Defense – 2.1%
	258,206	Aerojet Rocketdyne Holdings, Inc.(b)	$	4,539,261
	257,814	BWX Technologies, Inc.		9,892,323
	272,965	DigitalGlobe, Inc.(b)		7,506,538
				21,938,122
		Auto Components – 1.9%
	136,200	Cooper Tire & Rubber Co.		5,178,324
	183,745	Fox Factory Holding Corp.(b)		4,220,623
	311,349	Horizon Global Corp.(b)		6,205,185
	63,951	Tenneco, Inc.(b)		3,726,425
				19,330,557
		Banks – 17.1%
	420,939	BancorpSouth, Inc.		9,765,785
	160,341	Bank of the Ozarks, Inc.		6,157,094
	258,326	Bryn Mawr Bank Corp.		8,263,849
	450,864	Cathay General Bancorp		13,877,594
	217,763	Chemical Financial Corp.		9,609,881
	533,038	CVB Financial Corp.		9,386,799
	541,604	First Financial Bancorp		11,828,631
	193,155	First Financial Bankshares, Inc.		7,038,568
	411,049	Home BancShares, Inc.		8,553,930
	173,656	IBERIABANK Corp.		11,655,791
	168,106	LegacyTexas Financial Group, Inc.		5,317,193
	247,775	PacWest Bancorp		10,632,025
	177,536	Pinnacle Financial Partners, Inc.		9,601,147
	284,947	Popular, Inc.		10,890,674
	156,062	Prosperity Bancshares, Inc.		8,566,243
	99,750	Signature Bank(b)		11,815,387
	123,418	Texas Capital Bancshares, Inc.(b)		6,778,117
	255,353	Triumph Bancorp, Inc.(b)		5,066,204
	226,625	Wintrust Financial Corp.		12,593,551
				177,398,463
		Beverages – 0.9%
	664,437	Cott Corp.		9,468,227
		Building Products – 2.4%
	87,946	Apogee Enterprises, Inc.		3,930,307
	153,765	Armstrong World Industries, Inc.(b)		6,353,570
	70,344	Gibraltar Industries, Inc.(b)		2,613,279
	111,434	Masonite International Corp.(b)		6,927,852
	74,254	Patrick Industries, Inc.(b)		4,597,808
				24,422,816

See accompanying notes to financial statements.

|  28

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Capital Markets – 1.0%
	20,114	MarketAxess Holdings, Inc.	$	3,330,677
	191,907	Stifel Financial Corp.(b)		7,378,824
				10,709,501
		Chemicals – 1.4%
	120,054	Cabot Corp.		6,292,030
	118,130	Minerals Technologies, Inc.		8,350,610
				14,642,640
		Commercial Services & Supplies – 4.3%
	94,019	Clean Harbors, Inc.(b)		4,511,032
	300,147	KAR Auction Services, Inc.		12,954,345
	294,782	Kimball International, Inc.		3,814,479
	102,095	Knoll, Inc.		2,332,871
	327,274	R.R. Donnelley & Sons Co.		5,144,747
	238,745	Viad Corp.		8,802,528
	290,843	West Corp.		6,421,813
				43,981,815
		Communications Equipment – 1.8%
	243,219	ARRIS International PLC(b)		6,890,394
	337,076	Calix, Inc.(b)		2,477,509
	343,605	Digi International, Inc.(b)		3,917,097
	709,626	Viavi Solutions, Inc.(b)		5,244,136
				18,529,136
		Construction & Engineering – 1.6%
	110,895	Argan, Inc.		6,563,875
	170,800	MYR Group, Inc.(b)		5,141,080
	183,611	Quanta Services, Inc.(b)		5,139,272
				16,844,227
		Construction Materials – 0.8%
	221,752	Summit Materials, Inc., Class A(b)		4,113,500
	94,184	U.S. Concrete, Inc.(b)		4,338,586
				8,452,086
		Consumer Finance – 0.5%
	145,279	PRA Group, Inc.(b)		5,017,937
		Distributors – 0.8%
	219,700	Core-Mark Holding Co., Inc.		7,865,260
		Diversified Consumer Services – 0.4%
	277,662	Houghton Mifflin Harcourt Co.(b)		3,723,447
		Diversified Financial Services – 0.7%
	577,201	FNFV Group(b)		7,203,468

See accompanying notes to financial statements.

29  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Electric Utilities – 1.2%
	200,898	ALLETE, Inc.	$	11,977,539
		Electrical Equipment – 1.1%
	45,465	AZZ, Inc.		2,967,501
	341,965	Babcock & Wilcox Enterprises, Inc.(b)		5,642,422
	34,846	EnerSys		2,410,995
				11,020,918
		Electronic Equipment, Instruments & Components – 5.0%
	107,123	Belden, Inc.		7,390,416
	260,384	II-VI, Inc.(b)		6,335,143
	83,204	Kimball Electronics, Inc.(b)		1,153,207
	123,871	Littelfuse, Inc.		15,955,823
	213,702	Methode Electronics, Inc.		7,473,159
	110,650	Rogers Corp.(b)		6,758,502
	146,249	VeriFone Systems, Inc.(b)		2,301,959
	312,576	Vishay Intertechnology, Inc.		4,404,196
				51,772,405
		Energy Equipment & Services – 2.4%
	150,461	Bristow Group, Inc.		2,109,463
	240,094	Natural Gas Services Group, Inc.(b)		5,903,912
	326,184	RPC, Inc.(b)		5,479,891
	240,166	U.S. Silica Holdings, Inc.		11,182,129
				24,675,395
		Food & Staples Retailing – 0.8%
	276,400	SpartanNash Co.		7,993,488
		Food Products – 2.0%
	311,985	Darling Ingredients, Inc.(b)		4,214,917
	27,071	J&J Snack Foods Corp.		3,224,697
	173,768	Post Holdings, Inc.(b)		13,409,677
				20,849,291
		Health Care Equipment & Supplies – 1.8%
	71,870	Cynosure, Inc., Class A(b)		3,661,058
	210,698	Halyard Health, Inc.(b)		7,302,793
	162,457	SurModics, Inc.(b)		4,888,331
	14,621	Teleflex, Inc.		2,457,059
				18,309,241
		Health Care Providers & Services – 1.2%
	263,440	PharMerica Corp.(b)		7,394,761
	44,442	WellCare Health Plans, Inc.(b)		5,203,714
				12,598,475

See accompanying notes to financial statements.

|  30

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Hotels, Restaurants & Leisure – 3.9%
	328,250	Carrols Restaurant Group, Inc.(b)	$	4,336,182
	76,273	Churchill Downs, Inc.		11,162,554
	24,829	Cracker Barrel Old Country Store, Inc.		3,282,890
	84,048	Del Frisco’s Restaurant Group, Inc.(b)		1,132,127
	142,945	J. Alexander’s Holdings, Inc.(b)		1,448,033
	130,415	Marriott Vacations Worldwide Corp.		9,562,028
	175,805	Six Flags Entertainment Corp.		9,424,906
				40,348,720
		Household Durables – 0.7%
	88,268	Helen of Troy Ltd.(b)		7,606,054
		Household Products – 0.4%
	295,958	HRG Group, Inc.(b)		4,646,541
		Industrial Conglomerates – 0.7%
	318,788	Raven Industries, Inc.		7,341,688
		Insurance – 3.6%
	125,076	Atlas Financial Holdings, Inc.(b)		1,972,448
	371,538	Employers Holdings, Inc.		11,082,979
	123,428	First American Financial Corp.		4,848,252
	172,223	ProAssurance Corp.		9,038,263
	96,732	Reinsurance Group of America, Inc., Class A		10,441,252
				37,383,194
		Internet & Direct Marketing Retail – 1.5%
	519,741	1-800-Flowers.com, Inc., Class A(b)		4,766,025
	81,135	HSN, Inc.		3,229,173
	201,375	Liberty Ventures, Series A(b)		8,028,821
				16,024,019
		Internet Software & Services – 0.9%
	20,137	CommerceHub, Inc., Series A(b)		318,164
	176,033	CommerceHub, Inc., Series C(b)		2,800,685
	92,993	IAC/InterActiveCorp		5,809,273
				8,928,122
		IT Services – 5.1%
	305,516	Booz Allen Hamilton Holding Corp.		9,657,361
	118,302	CSG Systems International, Inc.		4,889,421
	90,390	DST Systems, Inc.		10,658,789
	136,906	Euronet Worldwide, Inc.(b)		11,203,018
	323,807	Perficient, Inc.(b)		6,524,711
	94,412	WEX, Inc.(b)		10,204,993
				53,138,293

See accompanying notes to financial statements.

31  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Life Sciences Tools & Services – 1.4%
	336,621	Albany Molecular Research, Inc.(b)	$	5,557,612
	308,530	VWR Corp.(b)		8,749,911
				14,307,523
		Machinery – 3.7%
	72,415	Alamo Group, Inc.		4,771,424
	170,875	Albany International Corp., Class A		7,241,683
	90,233	Altra Industrial Motion Corp.		2,614,050
	143,397	John Bean Technologies Corp.		10,116,658
	136,715	RBC Bearings, Inc.(b)		10,455,963
	30,804	Standex International Corp.		2,860,768
				38,060,546
		Marine – 0.5%
	78,077	Kirby Corp.(b)		4,853,266
		Media – 2.7%
	482,936	E.W. Scripps Co. (The), Class A(b)		7,678,683
	133,851	John Wiley & Sons, Inc., Class A		6,908,050
	522,374	National CineMedia, Inc.		7,689,345
	348,210	New Media Investment Group, Inc.		5,397,255
				27,673,333
		Metals & Mining – 0.9%
	507,316	Ferroglobe PLC		4,581,063
	135,487	Haynes International, Inc.		5,027,923
				9,608,986
		Multi-Utilities – 1.0%
	180,993	NorthWestern Corp.		10,412,527
		Oil, Gas & Consumable Fuels – 1.3%
	340,418	QEP Resources, Inc.		6,648,364
	997,011	Synergy Resources Corp.(b)		6,909,286
				13,557,650
		Pharmaceuticals – 0.9%
	139,559	Akorn, Inc.(b)		3,804,378
	208,513	Catalent, Inc.(b)		5,387,976
				9,192,354
		Professional Services – 1.3%
	112,479	FTI Consulting, Inc.(b)		5,012,064
	57,421	Insperity, Inc.		4,171,062
	204,386	Korn/Ferry International		4,292,106
				13,475,232

See accompanying notes to financial statements.

|  32

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		REITs – Apartments – 1.9%
	179,360	American Campus Communities, Inc.	$	9,124,043
	114,710	Mid-America Apartment Communities, Inc.		10,781,593
				19,905,636
		REITs – Health Care – 0.4%
	171,646	Sabra Healthcare REIT, Inc.		4,322,046
		REITs – Hotels – 0.5%
	283,562	Hersha Hospitality Trust		5,109,787
		REITs – Shopping Centers – 1.3%
	634,041	Retail Opportunity Investments Corp.		13,923,540
		REITs – Single Tenant – 0.8%
	159,592	National Retail Properties, Inc.		8,115,253
		REITs – Storage – 1.5%
	351,530	CubeSmart		9,582,708
	72,288	Life Storage, Inc.		6,429,295
				16,012,003
		Road & Rail – 1.7%
	104,752	Avis Budget Group, Inc.(b)		3,583,566
	94,380	Genesee & Wyoming, Inc., Class A(b)		6,507,501
	108,812	Old Dominion Freight Line, Inc.(b)		7,465,591
				17,556,658
		Semiconductors & Semiconductor Equipment – 2.0%
	192,205	Advanced Energy Industries, Inc.(b)		9,095,141
	132,532	Semtech Corp.(b)		3,675,112
	367,420	Teradyne, Inc.		7,928,924
				20,699,177
		Software – 1.4%
	219,255	Synchronoss Technologies, Inc.(b)		9,028,921
	146,376	Verint Systems, Inc.(b)		5,508,129
				14,537,050
		Specialty Retail – 1.8%
	270,309	Barnes & Noble, Inc.		3,054,492
	145,400	Genesco, Inc.(b)		7,918,484
	857,886	Office Depot, Inc.		3,062,653
	161,351	Sally Beauty Holdings, Inc.(b)		4,143,493
				18,179,122
		Thrifts & Mortgage Finance – 0.5%
	131,644	Federal Agricultural Mortgage Corp., Class C		5,199,938

See accompanying notes to financial statements.

33  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Transportation Infrastructure – 0.7%
	83,303	Macquarie Infrastructure Corp.	$	6,934,142
		Total Common Stocks (Identified Cost $716,953,373)		1,015,776,854
	Closed-End Investment Companies – 0.6%
	462,007	Hercules Capital, Inc. (Identified Cost $6,009,463)		6,264,815
	Principal Amount
	Short-Term Investments – 1.5%
$	16,131,843	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $16,131,883 on 10/03/2016 collateralized by $15,255,000 U.S. Treasury Note, 2.500% due 8/15/2023 valued at $16,456,331 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $16,131,843)		16,131,843
		Total Investments – 100.3% (Identified Cost $739,094,679)(a)		1,038,173,512
		Other assets less liabilities—(0.3)%		(3,431,431	)
		Net Assets – 100.0%	$	1,034,742,081
	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2016, the net unrealized appreciation on investments based on a cost of $736,517,809 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	$	329,934,005
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(28,278,302	)
		Net unrealized appreciation	$	301,655,703
	(b)	Non-income producing security.
	REITs	Real Estate Investment Trusts

See accompanying notes to financial statements.

|  34

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small Cap Value Fund – continued

Industry Summary at September 30, 2016

Banks	17.1	%
IT Services	5.1
Electronic Equipment, Instruments & Components	5.0
Commercial Services & Supplies	4.3
Hotels, Restaurants & Leisure	3.9
Machinery	3.7
Insurance	3.6
Media	2.7
Energy Equipment & Services	2.4
Building Products	2.4
Aerospace & Defense	2.1
Food Products	2.0
Semiconductors & Semiconductor Equipment	2.0
Other Investments, less than 2% each	42.5
Short-Term Investments	1.5
Total Investments	100.3
Other assets less liabilities	(0.3	)
Net Assets	100.0	%

See accompanying notes to financial statements.

35  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small/Mid Cap Growth Fund

Shares		Description	Value (†)
	Common Stocks – 97.2% of Net Assets
		Aerospace & Defense – 4.7%
	3,649	B/E Aerospace, Inc.	$	188,508
	3,327	Hexcel Corp.		147,386
	793	TransDigm Group, Inc.(b)		229,272
				565,166
		Air Freight & Logistics – 1.0%
	3,282	XPO Logistics, Inc.(b)		120,351
		Auto Components – 1.0%
	1,189	Drew Industries, Inc.		116,546
		Banks – 4.5%
	3,807	Columbia Banking System, Inc.		124,565
	2,259	First Republic Bank		174,192
	4,149	Home BancShares, Inc.		86,341
	4,147	Western Alliance Bancorp(b)		155,678
				540,776
		Biotechnology – 2.2%
	10,554	Ironwood Pharmaceuticals, Inc.(b)		167,597
	1,845	Neurocrine Biosciences, Inc.(b)		93,431
				261,028
		Capital Markets – 4.9%
	2,267	CBOE Holdings, Inc.		147,015
	1,074	MarketAxess Holdings, Inc.		177,844
	1,565	MSCI, Inc.		131,366
	2,815	SEI Investments Co.		128,392
				584,617
		Commercial Services & Supplies – 4.2%
	4,363	Healthcare Services Group, Inc.		172,688
	3,797	KAR Auction Services, Inc.		163,878
	4,878	Ritchie Bros. Auctioneers, Inc.		171,071
				507,637
		Construction Materials – 0.8%
	5,686	Headwaters, Inc.(b)		96,207
		Diversified Consumer Services – 4.4%
	2,692	Bright Horizons Family Solutions, Inc.(b)		180,068
	3,718	Grand Canyon Education, Inc.(b)		150,170
	8,723	Nord Anglia Education, Inc.(b)		189,987
				520,225
		Diversified Telecommunication Services – 1.4%
	4,636	Cogent Communications Holdings, Inc.		170,651

See accompanying notes to financial statements.

|  36

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small/Mid Cap Growth Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Electrical Equipment – 3.8%
	780	Acuity Brands, Inc.	$	206,388
	4,141	Generac Holdings, Inc.(b)		150,319
	2,467	Sensata Technologies Holding NV(b)		95,670
				452,377
		Electronic Equipment, Instruments & Components – 4.1%
	1,463	Coherent, Inc.(b)		161,720
	5,421	National Instruments Corp.		153,956
	6,069	Trimble Navigation Ltd.(b)		173,331
				489,007
		Energy Equipment & Services – 0.8%
	1,789	Dril-Quip, Inc.(b)		99,719
		Food & Staples Retailing – 1.2%
	1,158	Casey’s General Stores, Inc.		139,134
		Health Care Equipment & Supplies – 7.6%
	1,878	Align Technology, Inc.(b)		176,062
	2,314	Cantel Medical Corp.		180,446
	1,713	DexCom, Inc.(b)		150,162
	1,789	STERIS PLC		130,776
	1,747	West Pharmaceutical Services, Inc.		130,151
	5,907	Wright Medical Group NV(b)		144,899
				912,496
		Health Care Providers & Services – 6.9%
	2,329	Acadia Healthcare Co., Inc.(b)		115,402
	2,203	MEDNAX, Inc.(b)		145,949
	3,263	Surgical Care Affiliates, Inc.(b)		159,104
	2,423	VCA, Inc.(b)		169,561
	2,025	WellCare Health Plans, Inc.(b)		237,107
				827,123
		Health Care Technology – 2.4%
	1,151	athenahealth, Inc.(b)		145,164
	5,179	HealthStream, Inc.(b)		142,940
				288,104
		Hotels, Restaurants & Leisure – 4.7%
	1,875	Dunkin’ Brands Group, Inc.		97,650
	469	Panera Bread Co., Class A(b)		91,324
	2,050	Six Flags Entertainment Corp.		109,901
	2,001	Texas Roadhouse, Inc.		78,099
	1,164	Vail Resorts, Inc.		182,608
				559,582

See accompanying notes to financial statements.

37  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small/Mid Cap Growth Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Internet Software & Services – 4.4%
	812	CoStar Group, Inc.(b)	$	175,822
	4,449	GTT Communications, Inc.(b)		104,685
	1,375	j2 Global, Inc.		91,589
	2,173	SPS Commerce, Inc.(b)		159,520
				531,616
		IT Services – 5.8%
	2,360	Black Knight Financial Services, Inc., Class A(b)		96,524
	5,230	Booz Allen Hamilton Holding Corp.		165,320
	1,972	Broadridge Financial Solutions, Inc.		133,682
	2,911	ExlService Holdings, Inc.(b)		145,084
	1,748	Gartner, Inc.(b)		154,611
				695,221
		Leisure Products – 1.0%
	2,553	Brunswick Corp.		124,535
		Life Sciences Tools & Services – 1.4%
	2,189	ICON PLC(b)		169,363
		Machinery – 3.4%
	1,331	Middleby Corp. (The)(b)		164,538
	3,190	Sun Hydraulics Corp.		102,941
	2,902	Toro Co. (The)		135,930
				403,409
		Oil, Gas & Consumable Fuels – 2.4%
	1,524	Diamondback Energy, Inc.(b)		147,127
	4,121	Parsley Energy, Inc., Class A(b)		138,095
				285,222
		Pharmaceuticals – 1.7%
	915	Jazz Pharmaceuticals PLC(b)		111,154
	5,572	Nektar Therapeutics(b)		95,727
				206,881
		Professional Services – 1.3%
	4,389	TransUnion(b)		151,420
		Real Estate Management & Development – 1.1%
	2,792	First Service Corp.		130,331
		Semiconductors & Semiconductor Equipment – 3.8%
	2,957	Advanced Energy Industries, Inc.(b)		139,925
	3,555	MACOM Technology Solutions Holdings, Inc.(b)		150,519
	2,804	Silicon Laboratories, Inc.(b)		164,875
				455,319

See accompanying notes to financial statements.

|  38

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small/Mid Cap Growth Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Software – 8.5%
	2,733	Blackbaud, Inc.	$	181,307
	8,299	Callidus Software, Inc.(b)		152,287
	3,288	Guidewire Software, Inc.(b)		197,214
	2,163	HubSpot, Inc.(b)		124,632
	3,573	Paylocity Holding Corp.(b)		158,856
	1,014	Ultimate Software Group, Inc. (The)(b)		207,251
				1,021,547
		Textiles, Apparel & Luxury Goods – 1.8%
	1,023	Carter’s, Inc.		88,705
	2,245	Columbia Sportswear Co.		127,381
				216,086
		Total Common Stocks (Identified Cost $10,581,090)		11,641,696
	Principal Amount
	Short-Term Investments – 3.2%
$	377,396	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $377,397 on 10/03/2016 collateralized by $360,000 U.S. Treasury Note, 2.500% due 8/15/2023 valued at $388,350 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $377,396)		377,396
		Total Investments – 100.4% (Identified Cost $10,958,486)(a)		12,019,092
		Other assets less liabilities—(0.4)%		(44,669	)
		Net Assets – 100.0%	$	11,974,423
	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2016, the net unrealized appreciation on investments based on a cost of $10,969,667 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	$	1,342,238
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(292,813	)
		Net unrealized appreciation	$	1,049,425
	(b)	Non-income producing security.

See accompanying notes to financial statements.

39  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Small/Mid Cap Growth Fund – continued

Industry Summary at September 30, 2016

Software	8.5	%
Health Care Equipment & Supplies	7.6
Health Care Providers & Services	6.9
IT Services	5.8
Capital Markets	4.9
Aerospace & Defense	4.7
Hotels, Restaurants & Leisure	4.7
Banks	4.5
Internet Software & Services	4.4
Diversified Consumer Services	4.4
Commercial Services & Supplies	4.2
Electronic Equipment, Instruments & Components	4.1
Semiconductors & Semiconductor Equipment	3.8
Electrical Equipment	3.8
Machinery	3.4
Health Care Technology	2.4
Oil, Gas & Consumable Fuels	2.4
Biotechnology	2.2
Other Investments, less than 2% each	14.5
Short-Term Investments	3.2
Total Investments	100.4
Other assets less liabilities	(0.4	)
Net Assets	100.0	%

See accompanying notes to financial statements.

|  40

Statements of Assets and Liabilities

September 30, 2016

	Small Cap Growth Fund			Small Cap Value Fund		Small/Mid Cap Growth Fund
ASSETS
Investments at cost	$	913,446,774		$	739,094,679	$	10,958,486
Net unrealized appreciation		212,512,498			299,078,833		1,060,606
Investments at value		1,125,959,272			1,038,173,512		12,019,092
Receivable for Fund shares sold		724,010			797,729		—
Receivable for securities sold		11,619,181			1,604,528		165,957
Dividends and interest receivable		147,145			867,040		2,710
Prepaid expenses (Note 7)		4,579			4,305		46
TOTAL ASSETS		1,138,454,187			1,041,447,114		12,187,805
LIABILITIES
Payable for securities purchased		9,298,708			5,151,716		156,270
Payable for Fund shares redeemed		377,481			587,391		—
Management fees payable (Note 5)		715,707			627,098		2,077
Deferred Trustees’ fees (Note 5)		130,620			188,569		10,813
Administrative fees payable (Note 5)		41,030			38,375		420
Payable to distributor (Note 5d)		12,612			9,121		2
Other accounts payable and accrued expenses		92,065			102,763		43,800
TOTAL LIABILITIES		10,668,223			6,705,033		213,382
NET ASSETS	$	1,127,785,964		$	1,034,742,081	$	11,974,423
NET ASSETS CONSIST OF:
Paid-in capital	$	926,304,494		$	660,464,310	$	12,045,001
Accumulated net investment loss/Undistributed net investment income		(3,237,689	)		1,498,395		(18,730	)
Accumulated net realized gain (loss) on investments		(7,793,339	)		73,700,543		(1,112,454	)
Net unrealized appreciation on investments		212,512,498			299,078,833		1,060,606
NET ASSETS	$	1,127,785,964		$	1,034,742,081	$	11,974,423
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Institutional Class:
Net assets	$	812,383,250		$	654,501,090	$	11,974,423
Shares of beneficial interest		36,871,468			19,376,303		1,230,336
Net asset value, offering and redemption price per share	$	22.03		$	33.78	$	9.73
Retail Class:
Net assets	$	118,669,524		$	267,935,621	$	—
Shares of beneficial interest		5,758,957			8,039,271		—
Net asset value, offering and redemption price per share	$	20.61		$	33.33	$	—
Admin Class shares:
Net assets	$	—		$	43,973,326	$	—
Shares of beneficial interest		—			1,360,994		—
Net asset value, offering and redemption price per share	$	—		$	32.31	$	—
Class N shares:
Net assets	$	196,733,190		$	68,332,044	$	—
Shares of beneficial interest		8,897,292			2,021,274		—
Net asset value, offering and redemption price per share	$	22.11		$	33.81	$	—

See accompanying notes to financial statements.

41  |

Statements of Operations

For the Year Ended September 30, 2016

	Small Cap Growth Fund			Small Cap Value Fund			Small/Mid Cap Growth Fund
INVESTMENT INCOME
Dividends	$	5,917,987		$	14,895,029		$	67,845
Interest		13,581			3,844			116
Less net foreign taxes withheld		—			(45,206	)		(462	)
		5,931,568			14,853,667			67,499
Expenses
Management fees (Note 5)		8,333,969			7,820,966			80,170
Service and distribution fees (Note 5)		345,619			911,866			—
Administrative fees (Note 5)		489,740			459,609			4,714
Trustees’ fees and expenses (Note 5)		47,185			49,153			18,656
Transfer agent fees and expenses (Notes 5 and 6)		1,133,186			1,019,882			1,559
Audit and tax services fees		41,061			41,937			42,280
Custodian fees and expenses		40,491			29,392			6,353
Legal fees		18,635			17,055			183
Registration fees		97,416			84,402			18,777
Shareholder reporting expenses		71,115			76,323			1,215
Miscellaneous expenses (Note 7)		36,182			35,811			12,910
Total expenses		10,654,599			10,546,396			186,817
Less waiver and/or expense reimbursement (Note 5)		—			(283,441	)		(95,958	)
Net expenses		10,654,599			10,262,955			90,859
Net investment income (loss)		(4,723,031	)		4,590,712			(23,360	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments		(7,969,145	)		95,614,322			(943,201	)
Net change in unrealized appreciation (depreciation) on:
Investments		88,312,376			60,726,807			1,835,053
Net realized and unrealized gain on investments		80,343,231			156,341,129			891,852
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	75,620,200		$	160,931,841		$	868,492

See accompanying notes to financial statements.

|  42

Statements of Changes in Net Assets

	Small Cap Growth Fund						Small Cap Value Fund
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2016			Year Ended September 30, 2015
FROM OPERATIONS:
Net investment income (loss)	$	(4,723,031	)	$	(6,768,383	)	$	4,590,712		$	7,744,624
Net realized gain (loss) on investments		(7,969,145	)		96,389,671			95,614,322			106,149,654
Net change in unrealized appreciation (depreciation) on investments		88,312,376			(39,045,091	)		60,726,807			(93,246,609	)
Net increase in net assets resulting from operations		75,620,200			50,576,197			160,931,841			20,647,669
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Institutional Class		—			—			(4,437,216	)		(4,236,276	)
Retail Class		—			—			(1,004,613	)		(1,054,845	)
Admin Class		—			—			(29,796	)		(1,677	)
Class N		—			—			(305,471	)		(44,634	)
Net realized capital gains
Institutional Class		(60,491,317	)		(121,284,863	)		(64,722,294	)		(93,076,570	)
Retail Class		(11,886,045	)		(25,100,168	)		(27,186,960	)		(45,284,938	)
Admin Class		—			—			(4,490,438	)		(7,970,136	)
Class N		(13,284,984	)		(2,724,416	)		(3,940,507	)		(870,050	)
Total distributions		(85,662,346	)		(149,109,447	)		(106,117,295	)		(152,539,126	)
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		11,449,327			182,307,468			(76,857,263	)		34,718,995
Net increase (decrease) in net assets		1,407,181			83,774,218			(22,042,717	)		(97,172,462	)
NET ASSETS
Beginning of the year		1,126,378,783			1,042,604,565			1,056,784,798			1,153,957,260
End of the year	$	1,127,785,964		$	1,126,378,783		$	1,034,742,081		$	1,056,784,798
ACCUMULATED NET INVESTMENT LOSS/UNDISTRIBUTED NET INVESTMENT INCOME	$	(3,237,689	)	$	(5,262,820	)	$	1,498,395		$	3,993,205

See accompanying notes to financial statements.

43  |

Statements of Changes in Net Assets – continued

	Small/Mid Cap Growth Fund
	Year Ended September 30, 2016			Period Ended September 30, 2015(a)
FROM OPERATIONS:
Net investment loss	$	(23,360	)	$	(13,202	)
Net realized loss on investments		(943,201	)		(169,253	)
Net change in unrealized appreciation (depreciation) on investments		1,835,053			(774,447	)
Net increase (decrease) in net assets resulting from operations		868,492			(956,902	)
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		1,863,761			10,199,072
Net increase in net assets		2,732,253			9,242,170
NET ASSETS
Beginning of the year		9,242,170			—
End of the year	$	11,974,423		$	9,242,170
ACCUMULATED NET INVESTMENT LOSS	$	(18,730	)	$	(1,922	)

(a) From commencement of operations on June 30, 2015 through September 30, 2015.

See accompanying notes to financial statements.

|  44

Financial Highlights

For a share outstanding throughout each period.

	Small Cap Growth Fund—Institutional Class
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	22.22		$	24.27		$	26.35		$	19.17		$	15.06
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss(a)		(0.09	)		(0.14	)		(0.16	)(b)		(0.15	)(c)		(0.14	)
Net realized and unrealized gain (loss)		1.59			1.63			(0.09	)		7.33			4.25
Total from Investment Operations		1.50			1.49			(0.25	)		7.18			4.11
LESS DISTRIBUTIONS FROM:
Net investment income		—			—			—			—			—
Net realized capital gains		(1.69	)		(3.54	)		(1.83	)		—			—
Total Distributions		(1.69	)		(3.54	)		(1.83	)		—			—
Net asset value, end of the period	$	22.03		$	22.22		$	24.27		$	26.35		$	19.17
Total return		6.92	%		5.78	%		(1.31	)%(b)		37.45	%(c)		27.29	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	812,383		$	800,883		$	852,131		$	914,000		$	599,469
Net expenses		0.95	%		0.94	%		0.94	%		0.94	%		0.95	%
Gross expenses		0.95	%		0.94	%		0.94	%		0.94	%		0.95	%
Net investment loss		(0.41	)%		(0.57	)%		(0.63	)%(b)		(0.70	)%(c)		(0.79	)%
Portfolio turnover rate		56	%		78	%		63	%		56	%		77	%

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

(b) Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.17), total return would have been (1.35)% and the ratio of net investment loss to average net assets would have been (0.66)%.

(c) Includes non-recurring dividends. Without these dividends, net investment loss per share would have been $(0.16), total return would have been 37.40% and the ratio of net investment loss to average net assets would have been (0.75)%.

See accompanying notes to financial statements.

45  |

Financial Highlights – continued

For a share outstanding throughout each period.

	Small Cap Growth Fund—Retail Class
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	20.93		$	23.10		$	25.23		$	18.41		$	14.52
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss(a)		(0.13	)		(0.19	)		(0.22	)(b)		(0.20	)(c)		(0.19	)
Net realized and unrealized gain (loss)		1.50			1.56			(0.08	)		7.02			4.08
Total from Investment Operations		1.37			1.37			(0.30	)		6.82			3.89
LESS DISTRIBUTIONS FROM:
Net investment income		—			—			—			—			—
Net realized capital gains		(1.69	)		(3.54	)		(1.83	)		—			—
Total Distributions		(1.69	)		(3.54	)		(1.83	)		—			—
Net asset value, end of the period	$	20.61		$	20.93		$	23.10		$	25.23		$	18.41
Total return		6.61	%		5.58	%		(1.58	)%(b)		37.05	%(c)		26.79	%(d)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	118,670		$	162,906		$	175,393		$	211,724		$	229,822
Net expenses		1.20	%		1.19	%		1.21	%		1.25	%(e)		1.25	%(f)
Gross expenses		1.20	%		1.19	%		1.21	%		1.25	%(e)		1.28	%
Net investment loss		(0.66	)%		(0.82	)%		(0.90	)%(b)		(0.99	)%(c)		(1.09	)%
Portfolio turnover rate		56	%		78	%		63	%		56	%		77	%

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

(b) Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.23), total return would have been (1.58)% and the ratio of net investment loss to average net assets would have been (0.93)%.

(c) Includes non-recurring dividends. Without these dividends, net investment loss per share would have been $(0.21), total return would have been 36.99% and the ratio of net investment loss to average net assets would have been (1.05)%.

(d) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

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

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

See accompanying notes to financial statements.

|  46

Financial Highlights – continued

For a share outstanding throughout each period.

	Small Cap Growth Fund—Class N
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Period Ended September 30, 2013*
Net asset value, beginning of the period	$	22.27		$	24.29		$	26.36		$	20.22
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss(a)		(0.06	)		(0.12	)		(0.14	)(b)		(0.11	)
Net realized and unrealized gain (loss)		1.59			1.64			(0.10	)		6.25
Total from Investment Operations		1.53			1.52			(0.24	)		6.14
LESS DISTRIBUTIONS FROM:
Net investment income		—			—			—			—
Net realized capital gains		(1.69	)		(3.54	)		(1.83	)		—
Total Distributions		(1.69	)		(3.54	)		(1.83	)		—
Net asset value, end of the period	$	22.11		$	22.27		$	24.29		$	26.36
Total return		7.05	%		5.92	%		(1.27	)%(b)		30.37	%(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	196,733		$	162,591		$	15,080		$	7,580
Net expenses		0.83	%		0.83	%		0.83	%		0.83	%(d)
Gross expenses		0.83	%		0.83	%		0.83	%		0.83	%(d)
Net investment loss		(0.29	)%		(0.51	)%		(0.53	)%(b)		(0.63	)%(d)
Portfolio turnover rate		56	%		78	%		63	%		56	%

* From commencement of Class operations on February 1, 2013 through September 30, 2013.

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

(b) Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.14), total return would have been (1.31)% and the ratio of net investment loss to average net assets would have been (0.56)%.

(c) Periods less than one year are not annualized.

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

See accompanying notes to financial statements.

47  |

Financial Highlights – continued

For a share outstanding throughout each period.

	Small Cap Value Fund—Institutional Class
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	32.19		$	36.40		$	37.42		$	29.14		$	22.36
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.17			0.27			0.20			0.20			0.21
Net realized and unrealized gain (loss)		4.82			0.49			2.18			8.41			6.62
Total from Investment Operations		4.99			0.76			2.38			8.61			6.83
LESS DISTRIBUTIONS FROM:
Net investment income		(0.22	)		(0.22	)		(0.10	)		(0.30	)		(0.05	)
Net realized capital gains		(3.18	)		(4.75	)		(3.30	)		(0.03	)		—
Total Distributions		(3.40	)		(4.97	)		(3.40	)		(0.33	)		(0.05	)
Net asset value, end of the period	$	33.78		$	32.19		$	36.40		$	37.42		$	29.14
Total return		16.75	%(b)		1.20	%(b)		6.17	%(b)		29.82	%(b)		30.59	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	654,501		$	666,107		$	730,901		$	733,512		$	572,776
Net expenses		0.90	%(c)		0.90	%(c)		0.90	%(c)		0.90	%(c)		0.90	%(d)
Gross expenses		0.93	%		0.92	%		0.91	%		0.91	%		0.90	%(d)
Net investment income		0.52	%		0.75	%		0.53	%		0.61	%		0.76	%
Portfolio turnover rate		22	%		22	%		23	%		22	%		19	%

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

(b) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(c) The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

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

See accompanying notes to financial statements.

|  48

Financial Highlights – continued

For a share outstanding throughout each period.

	Small Cap Value Fund—Retail Class
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	31.78		$	35.98		$	37.03		$	28.84		$	22.14
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.08			0.18			0.10			0.12			0.13
Net realized and unrealized gain (loss)		4.77			0.48			2.16			8.32			6.57
Total from Investment Operations		4.85			0.66			2.26			8.44			6.70
LESS DISTRIBUTIONS FROM:
Net investment income		(0.12	)		(0.11	)		(0.01	)		(0.22	)		—
Net realized capital gains		(3.18	)		(4.75	)		(3.30	)		(0.03	)		—
Total Distributions		(3.30	)		(4.86	)		(3.31	)		(0.25	)		—
Net asset value, end of the period	$	33.33		$	31.78		$	35.98		$	37.03		$	28.84
Total return(b)		16.47	%		0.94	%		5.90	%		29.48	%		30.26	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	267,936		$	306,360		$	358,698		$	403,475		$	343,480
Net expenses(c)		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		1.18	%		1.17	%		1.20	%		1.22	%		1.22	%
Net investment income		0.27	%		0.50	%		0.28	%		0.37	%		0.49	%
Portfolio turnover rate		22	%		22	%		23	%		22	%		19	%

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

(b) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(c) The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

See accompanying notes to financial statements.

49  |

Financial Highlights – continued

For a share outstanding throughout each period.

	Small Cap Value Fund—Admin Class
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	30.88		$	35.06		$	36.24		$	28.22		$	21.72
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.01			0.09			0.01			0.04			0.06
Net realized and unrealized gain (loss)		4.62			0.48			2.11			8.15			6.44
Total from Investment Operations		4.63			0.57			2.12			8.19			6.50
LESS DISTRIBUTIONS FROM:
Net investment income		(0.02	)		(0.00	)(b)		—			(0.14	)		—
Net realized capital gains		(3.18	)		(4.75	)		(3.30	)		(0.03	)		—
Total Distributions		(3.20	)		(4.75	)		(3.30	)		(0.17	)		—
Net asset value, end of the period	$	32.31		$	30.88		$	35.06		$	36.24		$	28.22
Total return(c)		16.19	%		0.71	%		5.63	%		29.17	%		29.93	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	43,973		$	45,762		$	61,791		$	74,892		$	67,853
Net expenses(d)		1.39	%(e)		1.38	%(f)		1.40	%		1.40	%		1.40	%
Gross expenses		1.42	%(e)		1.40	%(f)		1.51	%		1.52	%		1.52	%
Net investment income		0.03	%		0.28	%		0.02	%		0.11	%		0.24	%
Portfolio turnover rate		22	%		22	%		23	%		22	%		19	%

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

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

(c) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

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

(e) Includes refund of prior year service fee of 0.01%. See Note 5b of Notes to Financial Statements.

(f) Includes refund of prior year service fee of 0.02%.

See accompanying notes to financial statements.

|  50

Financial Highlights – continued

For a share outstanding throughout each period.

	Small Cap Value Fund—Class N
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Period Ended September 30, 2013*
Net asset value, beginning of the period	$	32.22		$	36.44		$	37.44		$	32.08
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.19			0.27			0.23			0.06
Net realized and unrealized gain (loss)		4.83			0.50			2.18			5.30
Total from Investment Operations		5.02			0.77			2.41			5.36
LESS DISTRIBUTIONS FROM:
Net investment income		(0.25	)		(0.24	)		(0.11	)		—
Net realized capital gains		(3.18	)		(4.75	)		(3.30	)		—
Total Distributions		(3.43	)		(4.99	)		(3.41	)		—
Net asset value, end of the period	$	33.81		$	32.22		$	36.44		$	37.44
Total return		16.84	%		1.25	%		6.25	%(b)		16.71	%(b)(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	68,332		$	38,555		$	2,568		$	1
Net expenses		0.83	%		0.83	%(d)		0.85	%(e)		0.85	%(e)(f)
Gross expenses		0.83	%		0.83	%(d)		0.89	%		14.45	%(f)
Net investment income		0.61	%		0.76	%		0.60	%		0.27	%(f)
Portfolio turnover rate		22	%		22	%		23	%		22	%

* From commencement of Class operations on February 1, 2013 through September 30, 2013.

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

(b) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(c) Periods less than one year are not annualized.

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

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

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

See accompanying notes to financial statements.

51  |

Financial Highlights – continued

For a share outstanding throughout each period.

	Small/Mid Cap Growth Fund— Institutional Class
	Year Ended September 30, 2016			Period Ended September 30, 2015*
Net asset value, beginning of the period	$	9.05		$	10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss(a)		(0.02	)		(0.01	)
Net realized and unrealized gain (loss)		0.70			(0.94	)
Total from Investment Operations		0.68			(0.95	)
LESS DISTRIBUTIONS FROM:
Net investment income		—			—
Net realized capital gains		—			—
Total Distributions		—			—
Net asset value, end of the period	$	9.73		$	9.05
Total return(b)		7.51	%		(9.50	)%(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	11,974		$	9,242
Net expenses(d)		0.85	%		0.85	%(e)
Gross expenses		1.75	%		2.65	%(e)
Net investment loss		(0.22	)%		(0.53	)%(e)
Portfolio turnover rate		53	%		14	%

* From commencement of operations on June 30, 2015 through September 30, 2015.

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

(b) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(c) Periods less than one year are not annualized.

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

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

See accompanying notes to financial statements.

|  52

Notes to Financial Statements

September 30, 2016

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 Trust in multiple series. The financial statements for certain funds of the Trusts are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:

Loomis Sayles Funds I:

Loomis Sayles Small Cap Value Fund (the “Small Cap Value Fund”)

Loomis Sayles Funds II:

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

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

Each Fund is a diversified investment company.

Small Cap Growth Fund and Small Cap Value Fund were closed to new investors effective September 14, 2012 and September 15, 2008, respectively. Small Cap Growth Fund and Small Cap Value Fund continue to offer Institutional Class, Retail Class and Class N shares to existing investors and Small Cap Value Fund continues to offer Admin Class shares to existing investors.

Each share class is sold without a sales charge. Retail Class and Admin Class shares pay a Rule 12b-1 fee. Class N shares are offered with no initial minimum investment to certain retirement plans held in an omnibus fashion and fund of funds that are distributed by NGAM Distribution, L.P. (“NGAM Distribution”) and with an initial minimum investment of $1,000,000 to other categories of investors. Institutional Class shares are intended for institutional investors with a minimum initial investment of $100,000 for Small Cap Growth Fund and Small Cap Value Fund and $1,000,000 for Small/Mid Cap Growth Fund, though some categories of investors are exempted from the minimum investment amount as outlined in the Fund’s prospectus. Admin Class shares are offered exclusively through intermediaries.

Most expenses can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”). Expenses of a Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (such as the Rule 12b-1 fees applicable to Retail Class and Admin Class), and transfer agent fees for Small Cap Value Fund and Small Cap Growth Fund are borne collectively for Institutional Class, Retail Class and Admin Class, and individually for Class N. In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of

53  |

Notes to Financial Statements – continued

September 30, 2016

each class would receive their pro rata share of the net assets of a Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

2.  Significant Accounting Policies. The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements follow the accounting and reporting guidelines provided for investment companies and are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions subsequent to year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.

a.  Valuation. Fund securities and other investments are valued at market value based on market quotations obtained or determined by independent pricing services recommended by the adviser and approved by the Board of Trustees. Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees, as described below. Market value is determined as follows:

Listed equity securities (including shares of closed-end investment companies and exchange-traded funds) are valued at the last sale price quoted on the exchange where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. 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 an NOCP, at the most recent bid quotations on the applicable NASDAQ Market. Unlisted equity securities (except unlisted preferred equity securities) are valued at the last sale price quoted in the market where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. If there is no last sale price or closing bid quotation available, unlisted equity securities will be valued using evaluated bids furnished by an independent pricing service, if available. In some foreign markets, an official close price and a last sale price may be available from the foreign exchange or market. In those cases, the official close price is used. Debt securities and unlisted preferred equity securities are valued based on evaluated bids furnished to the Fund by an independent pricing service or bid prices obtained from broker-dealers. Broker-dealer bid prices may be used to value debt and unlisted equity securities where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security.

Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to

|  54

Notes to Financial Statements – continued

September 30, 2016

procedures approved by the Board of Trustees. The Funds may also value securities and other investments at fair value in other circumstances such as when extraordinary events occur after the close of a foreign market but prior to the close of the New York Stock Exchange (“NYSE”). This may include situations relating to a single issuer (such as a declaration of bankruptcy or a delisting of the issuer’s security from the primary market on which it has traded) as well as events affecting the securities markets in general (such as market disruptions or closings and significant fluctuations in U.S. and/or foreign markets). When fair valuing its securities or other investments, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities or other market activity and/or significant events that occur after the close of the foreign market and before the time the Fund’s net asset value (“NAV”) is calculated. Fair value pricing may require subjective determinations about the value of a security, and fair values used to determine a Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same securities. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities held by a Fund.

b.  Investment Transactions and Related Investment Income. Investment transactions are accounted for on a trade date plus one day basis for daily NAV calculation. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium, if applicable. 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. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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

55  |

Notes to Financial Statements – continued

September 30, 2016

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

The values of investment securities are presented at the foreign exchange rates prevailing at the end of the period for financial reporting purposes. Net realized and unrealized gains or losses on investments reported in the Statements of Operations reflect gains or losses resulting from changes in exchange rates and fluctuations which arise due to changes in market prices of investment securities.

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

d.  Federal and Foreign Income Taxes. The Trusts treat each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of September 30, 2016 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years, where applicable, remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next 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 withholding taxes on investment income and taxes on capital gains on investments that are accrued and paid based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign withholding taxes on dividend and interest income are reflected on the Statements of Operations as a reduction of investment income, net of amounts eligible to be reclaimed. Dividends and interest receivable on the Statements of Assets and Liabilities are net of foreign withholding taxes. Foreign withholding taxes where reclaims have been or will be filed are reflected on the Statements of Assets and Liabilities as tax reclaims receivable. Capital gains taxes paid are included in net realized gain (loss) on investments in the Statements of Operations. Accrued but unpaid capital gains taxes are reflected as foreign taxes payable on the Statements of Assets and Liabilities, if applicable, and reduce unrealized gains on investments. In the event that realized gains on investments

|  56

Notes to Financial Statements – continued

September 30, 2016

are subsequently offset by realized losses, taxes paid on realized gains may be returned to a Fund. Such amounts, if applicable, are reflected as foreign tax rebates receivable on the Statements of Assets and Liabilities and are recorded as a realized gain when received.

e.  Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined 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 of items such as capital gain and return of capital distributions received, distribution re-designations, redemptions-in-kind and net operating losses. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts reported on the Statements of Assets and Liabilities. Temporary differences between book and tax distributable earnings are primarily due to return of capital distributions received, deferred Trustees’ fees and wash sales. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2016 and 2015 were as follows:

	2016 Distributions Paid From:						2015 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Small Cap Growth Fund	$	—	$	85,662,346	$	85,662,346	$	—	$	149,109,447	$	149,109,447
Small Cap Value Fund		7,118,205		98,999,090		106,117,295		10,451,269		142,087,857		152,539,126
Small/Mid Cap Growth Fund		—		—		—		—		—		—

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.

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September 30, 2016

As of September 30, 2016, the components of distributable earnings on a tax basis were as follows:

	Small Cap Growth Fund			Small Cap Value Fund		Small/Mid Cap Growth Fund
Undistributed ordinary income	$	—		$	1,686,964	$	—
Undistributed long-term capital gains		—			71,123,673		—
Total undistributed earnings		—			72,810,637		—
Capital loss carryforward:
Short-term:
No expiration date		(7,329,238	)		—		(1,072,253	)
Long-term:
No expiration date		—			—		(29,020	)
Total capital loss carryforward		(7,329,238	)		—		(1,101,273	)
Late-year ordinary and post-October capital loss deferrals*		(3,107,069	)		—		(7,917	)
Unrealized appreciation		212,048,397			301,655,703		1,049,425
Total accumulated earnings (losses)	$	201,612,090		$	374,466,340	$	(59,765	)

* Under current tax law, capital losses, foreign currency losses, and losses on passive foreign investment companies and contingent payment debt instruments after October 31 or December 31, as applicable, may be deferred and treated as occurring on the first day of the following taxable year.

f.  Repurchase Agreements. Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of September 30, 2016, each Fund, as applicable, had investments in repurchase agreements for which the value of the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.

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

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at least 105% of the market value (including accrued interest) of loaned securities for non-U.S. equities; and at least 100% of the market value (including accrued interest) of loaned securities for U.S. Government securities, sovereign debt issued by non-U.S. Governments and non-U.S. corporate debt. In the event that the market value of the collateral falls below the required percentages described above, the borrower will deliver additional collateral on the next business day. As with other extensions of credit, the Funds 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.

For the year ended September 30, 2016, none of the Funds had loaned securities under this agreement.

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

3.  Fair Value Measurements. In accordance with accounting standards related to fair value measurements and disclosures, the Funds have categorized the inputs utilized in determining the value of each Fund’s assets or liabilities. These inputs are summarized in the three broad levels listed below:

• Level 1—quoted prices in active markets for identical assets or liabilities;

• Level 2—prices determined using other significant inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk, etc.); and

• Level 3—prices determined using significant unobservable inputs when quoted prices or observable inputs are unavailable such as when there is little or no market activity for an asset or liability (unobservable inputs reflect each Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

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The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2016, at value:

Small Cap Growth Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	1,091,709,628	$	—	$	—	$	1,091,709,628
Short-Term Investments		—		34,249,644		—		34,249,644
Total	$	1,091,709,628	$	34,249,644	$	—	$	1,125,959,272

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

For the year ended September 30, 2016, there were no transfers among Levels 1, 2 and 3.

Small Cap Value Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	1,015,776,854	$	—	$	—	$	1,015,776,854
Closed-End Investment Companies		6,264,815		—		—		6,264,815
Short-Term Investments		—		16,131,843		—		16,131,843
Total	$	1,022,041,669	$	16,131,843	$	—	$	1,038,173,512

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

For the year ended September 30, 2016, there were no transfers among Levels 1, 2 and 3

Small/Mid Cap Growth Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	11,641,696	$	—	$	—	$	11,641,696
Short-Term Investments		—		377,396		—		377,396
Total	$	11,641,696	$	377,396	$	—	$	12,019,092

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

For the year ended September 30, 2016, there were no transfers among Levels 1, 2 and 3

4.  Purchases and Sales of Securities. For the year ended September 30, 2016, purchases and sales of securities (excluding short-term investments) were as follows:

Fund	Purchases		Sales
Small Cap Growth Fund	$	610,941,721	$	689,757,477
Small Cap Value Fund		223,175,132		344,150,766
Small/Mid Cap Growth Fund		7,418,989		5,506,452

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5.  Management Fees and Other Transactions with Affiliates.

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

Fund	Percentage of Average Daily Net  Assets
Small Cap Growth Fund	0.75%
Small Cap Value Fund	0.75%
Small/Mid Cap Growth Fund	0.75%

Loomis Sayles has given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until January 31, 2017, may be terminated before then only with the consent of the Funds’ Board of Trustees and are reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.

For the year ended September 30, 2016, 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	Class N
Small Cap Growth Fund	1.00%	1.25%	—	0.95%
Small Cap Value Fund	0.90%	1.15%	1.40%	0.85%
Small/Mid Cap Growth Fund	0.85%	—	—	—

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

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For the year ended September 30, 2016, the management fees for each Fund were as follows:

Fund	Gross Management Fees		Waivers  of Management Fees1		Net Management Fees		Percentage of Average Daily Net Assets
							Gross	Net
Small Cap Growth Fund	$	8,333,969	$	—	$	8,333,969	0.75%	0.75%
Small Cap Value Fund		7,820,966		—		7,820,966	0.75%	0.75%
Small/Mid Cap Growth Fund		80,170		80,170		—	0.75%	—

For the year ended September 30, 2016, class-specific expenses have been reimbursed as follows:

	Reimbursement1
Fund	Institutional Class		Retail Class		Admin Class		Class N		Total
Small Cap Value Fund	$	192,869	$	77,883	$	12,689	$	—	$	283,441

In addition, the investment adviser reimbursed expenses of Small/Mid Cap Growth Fund in the amount of $15,788 for the year ended September 30, 2016¹.

¹ Waivers/expense reimbursements are subject to possible recovery until September 30, 2017.

Certain officers and employees of Loomis Sayles are also officers or Trustees of the Trusts. 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.  Service and Distribution Fees. NGAM Distribution, which is a wholly-owned subsidiary of Natixis US, has entered into a distribution agreement with the Trusts. Pursuant to this agreement, NGAM Distribution serves as principal underwriter of the Funds of the Trusts.

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

Under the Retail Class Plans, each Fund pays NGAM Distribution 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 shares, as compensation for services provided by NGAM Distribution in connection with the marketing or sale of Retail Class shares or for payments made by NGAM Distribution to securities dealers or other financial intermediaries as commissions, asset-based sales charges or other compensation with respect to the sale of Retail Class shares, or for providing personal services to investors and/or the maintenance of shareholder accounts.

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

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

For the year ended September 30, 2016, the service and distribution fees for each Fund were as follows:

	Service Fees		Distribution Fees
Fund	Admin Class		Retail Class		Admin Class
Small Cap Growth Fund	$	—	$	345,619	$	—
Small Cap Value Fund		109,390		690,696		111,780

For the year ended September 30, 2016, NGAM Distribution refunded Small Cap Value Fund $2,389 of prior year Admin Class service fees paid to NGAM Distribution in excess of amounts subsequently paid to securities dealers or financial intermediaries. Service and distribution fees on the Statements of Operations have been reduced by this amount.

c.  Administrative Fees. NGAM Advisors, L.P. (“NGAM Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. NGAM Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts and NGAM Advisors, each Fund pays NGAM 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 and Loomis Sayles Funds Trusts, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0350% of the next $30 billion and 0.0325% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts and Loomis Sayles Funds Trusts of $10 million, which is reevaluated on an annual basis.

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For the year ended September 30, 2016, the administrative fees for each Fund were as follows:

Fund	Administrative Fees
Small Cap Growth Fund	$	489,740
Small Cap Value Fund		459,609
Small/Mid Cap Growth Fund		4,714

d.   Sub-Transfer Agent Fees. NGAM Distribution has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Funds and has agreed to compensate the intermediaries for providing those services. Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. These services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly at the Funds’ transfer agent. Accordingly, the Funds have agreed to reimburse NGAM Distribution for all or a portion of the servicing fees paid to these intermediaries. The reimbursement amounts (sub-transfer agent fees) paid to NGAM Distribution are subject to a current per-account equivalent fee limit approved by the Funds’ Board of Trustees, which is based on fees for similar services paid to the Funds’ transfer agent and other service providers. Class N shares do not bear such expenses.

For the year ended September 30, 2016, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:

Fund	Sub-Transfer Agent Fees
Small Cap Growth Fund	$	1,109,571
Small Cap Value Fund		982,142
Small/Mid Cap Growth Fund		143

As of September 30, 2016, the Funds owe NGAM Distribution the following reimbursements for sub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as payable to distributor):

Fund	Reimbursements of Sub-Transfer Agent Fees
Small Cap Growth Fund	$	12,612
Small Cap Value Fund		9,121
Small/Mid Cap Growth Fund		2

Sub-transfer agent fees attributable to Institutional Class, Retail Class and Admin Class are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes.

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e.  Trustees Fees and Expenses. The Trusts do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of NGAM Advisors, NGAM Distribution, Natixis US or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $325,000. 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 $155,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, the chairperson of the Contract Review Committee and the chairperson of the Audit Committee each receive an additional retainer fee at the annual rate of $17,500. The chairperson of the Governance Committee receives an additional retainer fee at the annual rate of $10,000. Each Contract Review Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts and Loomis Sayles Funds Trusts based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2016, the Chairperson of the Board received a retainer fee at the annual rate of $300,000 and each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $130,000. The chairperson of the Governance Committee received an additional retainer fee at the annual rate of $5,000. All other Trustee fees remained unchanged.

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 and Loomis Sayles Funds Trusts as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts and Loomis Sayles Funds Trusts, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees in the Statements of Assets and Liabilities.

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f.  Affiliated Ownership. As of September 30, 2016, Loomis Sayles Funded Pension Plan and Trust (“Pension Plan”), Loomis Sayles Employees’ Profit Sharing Retirement Plan (“Retirement Plan”), and Natixis US held shares of the Funds representing the following percentages of the Fund’s net assets:

Fund	Pension Plan	Retirement Plan	Natixis US	Total Affiliated Ownership
Small Cap Growth Fund	0.94%	1.32%	—	2.26%
Small Cap Value Fund	1.72%	2.59%	—	4.31%
Small/Mid Cap Growth	—	8.91%	81.26%	90.17%

Investment activities of affiliated shareholders could have material impacts on the Funds.

6.  Class-Specific Transfer Agent Fees and Expenses. For the year ended September 30, 2016, the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):

	Transfer Agent Fees and Expenses
Fund	Institutional Class		Retail Class		Admin Class		Class N
Small Cap Growth Fund	$	963,724	$	168,639	$	—	$	823
Small Cap Value Fund		690,093		283,417		45,896		476
Small/Mid Cap Growth Fund		1,559		—		—		—

Transfer agent fees and expenses attributable to Institutional Class, Retail Class and Admin Class are allocated on a pro rata basis to each class based on relative net assets of each class to the total net assets of those classes. Transfer agent fees and expenses attributable to Class N are allocated to Class N.

7.  Line of Credit. Effective April 14, 2016, the Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, entered into a 364-day, $400,000,000 syndicated, committed, unsecured line of credit with Citibank, N.A. to be used for temporary or emergency purposes only. Any one Fund may borrow up to the full $400,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate do not exceed the $400,000,000 limit at any time) subject to each Fund’s investment restrictions. Interest is charged to the Funds at a rate equal to the greater of the eurodollar or the federal funds rate plus 1.00%. In addition, a commitment fee of 0.10% per annum, payable on the last business day of each month, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit. The Funds paid an arrangement fee, an upfront fee, and other fees in connection with the new line of credit agreement, which are being amortized over a period of 364 days and are reflected as miscellaneous expenses on the Statements of Operations. The unamortized balance is reflected as prepaid expenses on the Statements of Assets and Liabilities.

Prior to April 14, 2016 each Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, participated in a $150,000,000 committed

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September 30, 2016

unsecured line of credit provided by State Street Bank. Any one Fund was able to borrow up to the full $150,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate do not exceed the $150,000,000 limit at any time). Interest was charged to each participating Fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the year ended September 30, 2016, none of the Funds had borrowings under these agreements.

8.  Brokerage Commission Recapture. Each Fund has entered into agreements with certain brokers whereby the brokers will rebate a portion of brokerage commissions. All amounts rebated by the brokers are returned to the Funds under such agreements and are included in realized gains on investments in the Statements of Operations. For the year ended September 30, 2016, amounts rebated under these agreements were as follows:

Fund	Rebates
Small Cap Growth Fund	$	75,395
Small Cap Value Fund		49,751
Small/Mid Cap Growth Fund		629

9.  Concentration of Ownership. From time to time, a Fund may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of such accounts could have material impacts on the Funds. As of September 30, 2016, based on management’s evaluation of the shareholder account base, the Funds had accounts representing controlling ownership of more than 5% of the Fund’s total outstanding shares. The number of such accounts, based on accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings were as follows:

Fund	Number of 5% Non-Affiliated Account Holders	Percentage of Non-Affiliated Ownership	Percentage of Affiliated Ownership (Note 5)	Total Percentage of Ownership
Small Cap Growth Fund	2	31.74%	—	31.74%
Small Cap Value Fund	2	19.29%	—	19.29%
Small/Mid Cap Growth	—	—	90.17%	90.17%

Omnibus shareholder accounts for which NGAM Advisors understands that the intermediary has discretion over the underlying shareholder accounts or investment models where a shareholder account may be invested for a non-discretionary customer are included in the table above. For other omnibus accounts, the Funds do not have information on the individual shareholder accounts underlying the omnibus accounts; therefore, there could be other 5% shareholders in addition to those disclosed in the table above.

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

	Small Cap Growth Fund
	Year Ended September 30, 2016						Year Ended September 30, 2015
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		7,447,055		$	155,701,856			7,265,268		$	175,813,770
Issued in connection with the reinvestment of distributions		2,716,857			58,412,420			5,134,319			117,062,465
Redeemed		(9,612,542	)		(201,629,117	)		(11,470,816	)		(274,541,353	)
Subscription in-kind (Note 11)		277,161			5,698,438			—			—
Net change		828,531		$	18,183,597			928,771		$	18,334,882
Retail Class
Issued from the sale of shares		935,456		$	18,282,313			1,423,680		$	32,677,891
Issued in connection with the reinvestment of distributions		588,964			11,867,620			1,163,810			25,045,197
Redeemed		(3,547,121	)		(71,211,754	)		(2,397,388	)		(53,969,398	)
Net change		(2,022,701	)	$	(41,061,821	)		190,102		$	3,753,690
Class N
Issued from the sale of shares		3,494,879		$	74,656,476			6,907,906		$	165,784,056
Issued in connection with the reinvestment of distributions		616,186			13,284,984			119,335			2,724,416
Redeemed		(2,515,389	)		(53,613,909	)		(346,462	)		(8,289,576	)
Net change		1,595,676		$	34,327,551			6,680,779		$	160,218,896
Increase (decrease) from capital share transactions		401,506		$	11,449,327			7,799,652		$	182,307,468
	Small Cap Value Fund
	Year Ended September 30, 2016						Year Ended September 30, 2015
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		3,109,829		$	98,123,134			3,379,231		$	118,476,722
Issued in connection with the reinvestment of distributions		2,210,358			66,708,596			2,730,775			93,993,275
Redeemed		(5,042,901	)		(158,011,519	)		(5,495,573	)		(195,820,490	)
Redeemed in-kind (Note 11)		(1,595,784	)		(52,325,759	)		—			—
Net change		(1,318,498	)	$	(45,505,548	)		614,433		$	16,649,507

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10.  Capital Shares – continued.

	Small Cap Value Fund – continued
	Year Ended September 30, 2016						Year Ended September 30, 2015
Retail Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		609,197		$	18,890,158			931,124		$	32,655,794
Issued in connection with the reinvestment of distributions		943,438			28,142,755			1,357,910			46,236,825
Redeemed		(3,153,621	)		(100,205,101	)		(2,618,373	)		(91,431,051	)
Net change		(1,600,986	)	$	(53,172,188	)		(329,339	)	$	(12,538,432	)
Admin Class
Issued from the sale of shares		341,303		$	10,091,067			314,600		$	10,633,628
Issued in connection with the reinvestment of distributions		111,997			3,244,570			179,802			5,960,432
Redeemed		(574,173	)		(17,370,719	)		(774,906	)		(26,217,314	)
Net change		(120,873	)	$	(4,035,082	)		(280,504	)	$	(9,623,254	)
Class N
Issued from the sale of shares		945,571		$	29,754,154			1,179,383		$	42,095,614
Issued in connection with the reinvestment of distributions		140,642			4,245,978			26,566			914,684
Redeemed		(261,689	)		(8,144,577	)		(79,684	)		(2,779,124	)
Net change		824,524		$	25,855,555			1,126,265		$	40,231,174
Increase (decrease) from capital share transactions		(2,215,833	)	$	(76,857,263	)		1,130,855		$	34,718,995
	Small/Mid Cap Growth Fund
	Year Ended September 30, 2016						Period Ended September 30, 2015(a)
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		214,933		$	1,914,485			1,020,804		$	10,199,072
Redeemed		(5,401	)		(50,724	)		—			—
Net change		209,532		$	1,863,761			1,020,804		$	10,199,072
Increase (decrease) from capital share transactions		209,532		$	1,863,761			1,020,804		$	10,199,072

(a) From commencement of operations on June 30, 2015 through September 30, 2015.

11.  Redemption/Subscription In-Kind. In certain circumstances, a Fund may distribute portfolio securities rather than cash as payment for redemption of Fund shares (redemption in-kind). For financial reporting purposes, the Fund will recognize a gain on in-kind redemptions to the extent the value of the distributed securities on the date of

69  |

Notes to Financial Statements – continued

September 30, 2016

redemption exceeds the cost of those securities; the Fund will recognize a loss if the cost exceeds value. Gains and losses realized on redemptions in-kind are not recognized for tax purposes, and are re-classified from realized gain (loss) to paid-in-capital. Small Cap Value Fund realized a gain of $16,627,849 on redemptions in-kind during the the year ended September 30, 2016. This amount is included in realized gain (loss) on the Statements of Operations. A Fund may also receive securities in lieu of cash as payment for Fund shares. During the year ended September 30, 2016, Small Cap Growth Fund received equity securities valued at $5,698,438 as payment for Fund shares.

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Report of Independent Registered Public Accounting Firm

To the Trustees of Loomis Sayles Funds Trust I and Loomis Sayles Funds Trust II and Shareholders of Loomis Sayles Small Cap Growth Fund, Loomis Sayles Small Cap Value Fund and Loomis Sayles Small/Mid 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 Growth Fund, a series of Loomis Sayles Funds Trust II, Loomis Sayles Small Cap Value Fund, a series of Loomis Sayles Funds Trust I, and Loomis Sayles Small/Mid Cap Growth Fund, a series of Loomis Sayles Funds Trust II (collectively, the “Funds”) at September 30, 2016, 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 audit 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, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion expressed above.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2016

71  |

2016 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2016, a percentage of dividends distributed by the Fund listed below qualifies for the dividends received deduction for corporate shareholders. This percentage is as follows:

Fund	Qualifying Percentage
Small Cap Value		100.00%

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, 2016, unless subsequently determined to be different.

Fund	Amount
Small Cap Growth	$	85,662,346
Small Cap Value		98,999,090

Qualified Dividend Income. For the fiscal year ended September 30, 2016, the Fund below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Fund pays a distribution during calendar year 2016, complete information will be reported in conjunction with Form 1099-DIV.

Fund

Small Cap Value

|  72

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 Funds’ Statement(s) of Additional Information include additional information about the trustees of the Trusts and are available by calling 800-633-3330.

Name and Year of Birth	Position(s) Held with the Trust(s), Length of Time Served and Term  of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES
Kenneth A. Drucker (1945)	Trustee since 2008 Chairperson of the Audit Committee and Governance Committee Member	Retired	44 None	Significant experience on the Board and on the boards of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)
Edmond J. English (1953)	Trustee since 2013 Audit Committee Member	Chief Executive Officer of Bob’s Discount Furniture (retail)	44 Director, Burlington Stores, Inc. (retail); Formerly, Director, BJ’s Wholesale Club (retail)	Experience on the Board and significant experience on the boards of other business organizations (including retail companies and a bank); executive experience (including at a retail company)
Richard A. Goglia (1951)	Trustee since 2015 Audit Committee Member	Retired; formerly Vice President and Treasurer of Raytheon Company (defense)	44 None	Experience on the Board and executive experience (including his role as vice president and treasurer of a defense company and experience at a financial services company)

73  |

Trustee and Officer Information – continued

Name and Year of Birth	Position(s) Held with the Trust(s), Length of Time Served and Term  of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES – continued
Wendell J. Knox (1948)	Trustee since 2009 Contract Review Committee Member and Governance Committee Member	Director of Abt Associates Inc. (research and consulting)	44 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the boards of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)
Martin T. Meehan (1956)	Trustee since 2012 Contract Review Committee Member	President, University of Massachusetts; formerly, Chancellor and faculty member, University of Massachusetts Lowell	44 None	Experience on the Board and on the boards of other business organizations; experience as President of the University of Massachusetts; government experience (including as a member of the U.S. House of Representatives); academic experience

|  74

Trustee and Officer Information – continued

Name and Year of Birth	Position(s) Held with the Trust(s), Length of Time Served and Term  of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES – continued
Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee since 2003 Ex Officio member of the Audit Committee, the Contract Review Committee and the Governance Committee	President, Strategic Advisory Services (management consulting)	44 Formerly, Director, AES Corporation (international power company); formerly, Director, Verizon Communications (telecommunications company)	Significant experience on the Board and on the boards of other business organizations (including at a telecommunications company, an international power company and a specialty chemicals corporation); executive experience (including at a management consulting company)
James P. Palermo (1955)	Trustee since 2016 Contract Review Committee Member	Founding Partner, Breton Capital Management, LLC (private equity); formerly, Chief Executive Officer of Global Client Management of The Bank of New York Mellon Corporation	44 None	Experience on the Board; financial services industry and executive experience (including roles as chief executive officer of client management and asset servicing for a banking and financial services company)
Erik R. Sirri (1958)	Trustee since 2009 Audit Committee Member	Professor of Finance at Babson College	44 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist

75  |

Trustee and Officer Information – continued

Name and Year of Birth	Position(s) Held with the Trust(s), Length of Time Served and Term  of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES – continued
Peter J. Smail (1952)	Trustee since 2009 Chairperson of the Contract Review Committee and Governance Committee Member	Retired	44 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)
Cynthia L. Walker (1956)	Trustee since 2005 Chairperson of the Governance Committee and Contract Review Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine	44 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)
INTERESTED TRUSTEES
Kevin P. Charleston3 (1965) One Financial Center Boston, MA 02111	Trustee since 2015 President and Chief Executive Officer of Loomis Sayles Funds I since 2015	President, Chief Executive Officer and Director; formerly, Chief Financial Officer, Loomis, Sayles & Company, L.P.	44 None	Experience on the Board; continuing service as President, Chief Executive Officer and Director of Loomis, Sayles & Company, L.P.
David L. Giunta4 (1965)	Trustee since 2011 President since 2008 and Chief Executive Officer since 2015 of Loomis Sayles Funds II and Executive Vice President of Loomis Sayles Funds I since 2008	President and Chief Executive Officer, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.	44 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer of NGAM Advisors, L.P.

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Trustee and Officer Information – continued

Name and Year of Birth	Position(s) Held with the Trust(s), Length of Time Served and Term  of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INTERESTED TRUSTEES – continued
John T. Hailer5 (1960)	Trustee since 2003	President and Chief Executive Officer –U.S. and Asia, Natixis Global Asset Management, L.P.	44 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

¹  Each trustee serves until retirement, resignation or removal from the Board. The current retirement age is 75. The position of Chairperson of the Board is appointed for a three-year term. Ms. Moose was appointed to serve an additional three-year term as the Chairperson of the Board on December 13, 2013.

²  The trustees of the Trusts serve as trustees of a fund complex that includes all series of the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV and Gateway Trust (collectively, the “Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (collectively, the “Loomis Sayles Funds Trusts”) and Natixis ETF Trust (collectively, the “Fund Complex”).

³  Mr. Charleston is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President and Chief Executive Officer of Loomis, Sayles & Company, L.P.

⁴  Mr. Giunta is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President and Chief Executive Officer of NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

⁵ Mr. Hailer is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

77  |

Trustee and Officer Information – continued

Name and Year of Birth	Position(s) Held with the Trust(s)	Term of Office1 and Length of Time Served	Principal Occupation(s) During Past 5 Years2
OFFICERS OF THE TRUST
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.
Russell L. Kane (1969)	Secretary, Clerk and Chief Legal Officer	Since July 2016	Executive Vice President, General Counsel, Secretary and Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.; formerly, Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.
Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, NGAM Advisors, L.P. and NGAM Distribution, L.P.
Rosa Licea-Mailloux (1976)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Since July 2016	Mutual Funds Chief Compliance Officer, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.; formerly, Associate General Counsel, NGAM Distribution, L.P.

¹  Each officer of the Trust serves for an indefinite term in accordance with the Trust’s current by-laws until the date his or her successor is elected and qualified, or until he or she sooner dies, retires, is removed or becomes disqualified.

²  Each person listed above, except as noted, holds the same position(s) with the Fund Complex. Mr. Fuss is not an officer of the Natixis Funds Trusts or the Natixis ETF Trust. Previous positions during the past five years with NGAM Distribution, L.P., NGAM Advisors, L.P. or Loomis, Sayles & Company, L.P. are omitted, if not materially different from a trustee’s or officer’s current position with such entity.

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ANNUAL REPORT

September 30, 2016

Loomis Sayles High Income Fund

Loomis Sayles Intermediate Duration Bond Fund

Loomis Sayles Limited Term Government

and Agency Fund

TABLE OF CONTENTS

Portfolio Review  page 1

Portfolio of Investments  page 20

Financial Statements  page  59

Notes to Financial Statements  page 73

LOOMIS SAYLES HIGH INCOME FUND

Managers	Symbols
Matthew J. Eagan, CFA®	Class A    NEFHX
Elaine M. Stokes	Class C    NEHCX
Loomis, Sayles & Company, L.P.	Class Y    NEHYX

Investment Goal

The Fund seeks high current income plus the opportunity for capital appreciation to produce a high total return

Market Conditions

In the beginning of the period, the Federal Reserve (Fed) raised interest rates for the first time since June 2006. This led to modest losses within investment-grade markets and added to an already challenging environment for high yield. After oil prices bottomed in mid-February, capital returned to markets and riskier assets rebounded strongly. Volatility spiked temporarily in June following the U.K. referendum vote to leave the European Union (EU), but conditions were generally calm for the remainder of the period. Fixed-income markets finished the period on a positive note and added to full-year gains.

After declining through mid-February, U.S. high yield became a sought-after asset. The sector rewarded investors by producing strong and steady gains with minimal volatility. Spreads (the difference in yield between non-Treasury and Treasury securities of similar maturity) are trading inside the long-term average, but remain above the lows of 2014. Lower-quality credits and cyclical sectors outperformed during the period as the search for yield presses onward.

Investment-grade corporate bonds also performed well during the one-year period, bouncing back from the lows experienced during the fourth quarter of 2015. The sector’s longer duration (price sensitivity to interest rate changes) was a positive tailwind as longer-maturity yields declined. Overall returns were positive across all sectors, with cyclical sectors and energy performing well during the second half of the period.

For roughly the first half of the period, the U.S. dollar continued to strengthen against most major global currencies. But the Fed struck a more dovish tone early in 2016, and this contributed to a pause in the dollar bull market. A more stable dollar supported currencies —particularly those in the emerging markets — that suffered during the dollar’s ascent. The recovery in oil prices also helped ease the strain on commodity-related currencies.

Performance Results

For the 12 months ended September 30, 2016, Class A shares of Loomis Sayles High Income Fund returned 10.66%. The fund underperformed its benchmark, the Bloomberg Barclays U.S. Corporate High-Yield Bond Index, which returned 12.73%.

Explanation of Fund Performance

High yield industrial securities were top contributors to the fund’s relative performance due to industry and security selection. In particular, basic industry and energy holdings

1  |

performed well. High yield utilities also aided relative return and outperformed duration-matched Treasuries (Treasuries with similar duration, or price sensitivity to interest rate changes). In addition, out-of-benchmark exposure to Yankee (U.S. dollar-denominated bonds issued by a non-U.S. entity) government-related securities lifted performance.

Out-of-benchmark exposure to non-U.S.-dollar-denominated holdings weighed on relative performance. In particular, securities denominated in the Mexican peso detracted, as the peso hit an all-time low versus the U.S. dollar in mid-September. U.S. dollar appreciation relative to foreign currencies challenged some of the fund’s non-U.S.-dollar-denominated holdings during the period. During the period the Fund’s distributions were reduced to reflect the realization of currency losses from certain bond sales and maturities. In addition, our position in convertible securities detracted from results. Despite generating a positive absolute return, the allocation lagged on a relative basis due to a selected holding in the transportation industry. Our cash and reserve positions lagged the strongly rising high yield market in the second half of the period and hindered results. Out-of-benchmark positions in residential mortgage-backed securities (RMBS), asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS) posted positive absolute returns but detracted on a relative basis. An underweight allocation to the lowest-quality high yield bonds also detracted from performance.

Outlook

Our outlook for the U.S. and global economies remains positive, with expectations for better growth momentum through the end of the year. In the U.S., we expect steady gains in employment, increased bank lending and stronger consumer confidence to support Gross Domestic Product (GDP) growth. The global economy is facing more headwinds but should experience modestly stronger growth next year, led by a healthier U.S. economy and still-accommodative global central bank policies.

Inflation expectations remain low. However, U.S. inflation is showing signs of acceleration and recent economic data have been favorable. We think the Fed is likely to raise rates in December if market conditions remain stable.

Oil prices are likely to be range-bound over the short term as elevated supply should be countered by OPEC’s expected production cut in November. We remain constructive on intermediate- to longer-term oil prices and expect that supply and demand will adjust.

We expect low global yields to continue supporting flows into U.S. credit, but at a more modest pace. In this environment, we intend to maintain a yield cushion in our portfolios through exposure to corporate bonds. Credit fundamentals have been stable, reflecting a slowly improving U.S. economy. However, downside risks — including slowing profit growth, rising leverage and free cash flow approaching peak levels — are increasing as we move further into the late stage of the credit cycle.¹ Despite these risks, we believe the current phase of the credit cycle can continue for some time, and we do not expect a significant increase in corporate defaults in 2017.

Within credit, we favor the investment-grade financials, technology and energy sectors. We are also biased to higher-quality high yield. Convertible bonds continue to look attractive, and our focus has shifted from equity-sensitive convertibles to more balanced and credit-sensitive issues. We believe these securities offer yield and upside potential with more limited downside risk.

|  2

LOOMIS SAYLES HIGH INCOME FUND

The Fed’s slow and cautious approach has helped keep the U.S. dollar range-bound against major currencies. Over the long term, improving global growth and further stability in commodities could support non-U.S.-dollar-denominated bonds. We are beginning to see more divergence in emerging market country fundamentals and political backdrops, which could expand potential relative value opportunities. We intend to maintain our current positions, which we believe represent long-term value, but are cautious on further exposure until we get better clarity on some of these evolving macro trends.

Risks include growing geopolitical risks, a prolonged period of low economic growth, declining corporate profit expectations and a shift to downturn in the U.S. credit cycle. Looking ahead, we remain focused on careful security selection using fundamental credit analysis. We intend to build on our key investment themes of yield and diversification, using our reserve allocation during periods of extreme short-term market dislocation to potentially add long-term value.

Since early 2015, monthly or quarterly ordinary income distributions for certain Loomis Sayles-managed fixed-income funds have been below historic averages. This is primarily due to the impact of foreign currency losses. Fund officers have analyzed the fund’s current portfolio of investments, schedule of maturities and the corresponding amounts of unrealized currency losses that may become realized in the fiscal year ending on September 30, 2017. Based on this analysis, fund officers believe that realized currency losses may have a less significant impact on this fund’s distributions in the 2017 fiscal year. As a result, the distribution amount may improve going forward. This analysis is based on certain assumptions, including but not limited to the level of foreign currency exchange rates, security prices, interest rates and the net asset level of the fund. Changes to these assumptions could impact the analysis and the amounts of future fund distributions.

¹  A credit cycle is a cyclical pattern that follows credit availability and corporate health.

Hypothetical Growth of $10,000 Investment in Class A Shares⁴

September 30, 2006 through September 30, 2016

3  |

Average Annual Total Returns — September 30, 2016⁴

										Expense Ratio5
	1 Year			5 Years			10 Years			Gross			Net
Class A (Inception 2/22/84)
NAV		10.66	%		7.98	%		6.37	%		1.13	%		1.10	%
With 4.25% Maximum Sales Charge		5.88			7.03			5.90
Class C (Inception 3/2/98)
NAV		9.81			7.16			5.58			1.88	%		1.85	%
With CDSC2		8.81			7.16			5.58
Class Y (Inception 2/29/08)1
NAV		10.98			8.22			6.59			0.88	%		0.85	%
Comparative Performance
Bloomberg Barclays U.S. Corporate High-Yield Bond Index3		12.73			8.34			7.71

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit ngam.natixis.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might we on any fund distributions or when they redeem their shares.

1 Prior to the inception of Class Y shares (2/29/08), performance is that of Class A shares, restated to reflect the higher net expenses of that share class.

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

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

4 Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

5 As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/17. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

|  4

LOOMIS SAYLES INTERMEDIATE DURATION BOND FUND

Managers	Symbols
Christopher T. Harms	Class A    LSDRX
Clifton V. Rowe, CFA®	Class C    LSCDX
Kurt L. Wagner, CFA®, CIC	Class Y    LSDIX

Investment Goal

The Fund’s investment objective is above-average total return through a combination of current income and capital appreciation.

Market Conditions

Investment-grade corporate bonds performed well during the one-year period, bouncing back from the lows experienced during the fourth quarter of 2015. The sector’s longer duration (greater price sensitivity to interest rate changes) was a positive tailwind, as longer-maturity yields declined. Overall returns were positive across all sectors, with cyclical sectors and energy performing well during the second half of the period.

Yields on securitized assets generally followed U.S. Treasury yields lower, resulting in a positive total return for the sector. The Federal Reserve (the Fed) still owns $1.7 trillion worth of mortgage-backed securities (MBS) and remains a powerful force in that market as principal payments from matured securities are reinvested.

At the start of the first quarter, the Fed projected four rate hikes during 2016. Yet as of September 30, there had been no increases and markets anticipated only one 25 basis point hike before year-end. The Fed consistently lowered economic projections throughout 2016, which removed some of the upward pressure on U.S. Treasury yields.

Performance Results

For the 12 months ended September 30, 2016, Class A shares of Loomis Sayles Intermediate Duration Bond Fund returned 3.64%. The fund outperformed its benchmark, the Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index, which returned 3.52%.

Explanation of Fund Performance

Overall, the fund’s investment-grade holdings generated positive absolute and relative return during the period. Within the space, the industrial and financial sectors contributed the most on a relative basis, primarily due to security selection. Specifically, energy and banking names aided results. In addition, the fund’s exposure to non-agency securitized credit contributed to absolute return and had a significant impact on relative performance. In particular, commercial mortgage-backed securities (CMBS) added to returns. We continued to focus on top-tranche, super-senior CMBS, finding opportunities among seasoned and new issues. Asset-backed securities (ABS) also benefited relative results, as we remained focused on low-risk, high-quality issues. Elsewhere, a meaningful underweight to U.S. Treasuries contributed to returns.

Though our overall exposure to investment-grade industrials lifted absolute and relative results, the fund’s underweight position in the sector hampered relative performance.

5  |

Similarly, government-related securities contributed to relative performance, but the fund’s underweight position in the sector weighed slightly on results. Elsewhere, security selection among agency collateralized mortgage obligations (CMOs) and agency CMBS detracted modestly from relative performance.

Outlook

We believe one Fed rate hike in the next year is probable, with December being the earliest possibility. However, the Fed may delay the hike until the first half of 2017. We expect global quantitative easing and accommodative monetary policy to anchor yields, which is why we expect to maintain underweight positions in lower-yielding government bonds, favoring spread product (non-Treasury securities) instead.

The fund has a modest overweight position to credit, but we have reduced credit beta (a measure of co-movement of portfolio returns to changes in the market return). We remain focused on security selection, buying new issues with concessions and secondary bonds that offer strong risk-return opportunities. We are also maintaining an overweight to CMBS, particularly senior bonds, and view the sector as an attractive alternative to government markets.

We believe MBS valuations appear full and do not fully compensate for prepayment risk. Accordingly, we are focusing on securities with limited prepayment risk. We also believe the high-quality ABS sector remains attractive relative to government bonds, and we are maintaining our exposure to senior and subordinate debt of prime and subprime issuers.

Overall, we continue to pursue a yield advantage relative to the benchmark. We are monitoring our portfolio and holdings in an effort to avoid undue exposures to macroeconomic events, and we continue to evaluate market events and trading levels for potential opportunities.

Hypothetical Growth of $10,000 Investment in Class A Shares^1,4,5

September 30, 2006 through September 30, 2016

See notes to chart on page 7.

|  6

LOOMIS SAYLES INTERMEDIATE DURATION BOND FUND

Average Annual Total Returns — September 30, 2016^4,5

										Expense Ratio6
	1 Year			5 Years			10 Years			Gross			Net
Class A (Inception 1/28/98)1
NAV		3.64	%		2.84	%		4.71	%		0.71	%		0.65	%
With 4.25% Maximum Sales Charge		-0.75			1.94			4.25
Class C (Inception 8/31/16)1
NAV		2.98			2.00			3.75			1.47			1.40
With CDSC2		1.98			2.00			3.75
Class Y (Inception 5/28/10)1
NAV		3.90			3.11			4.98			0.47			0.40
Comparative Performance
Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index3		3.52			2.45			4.17

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit ngam.natixis.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might we on any fund distributions or when they redeem their shares.

1 Effective August 31, 2016, the Fund’s Retail Class shares and Institutional Class shares were redesignated as Class A shares and Class Y shares, respectively. Accordingly, the returns shown in the table for Class A shares prior to August 31, 2016 are those of Retail Class shares, restated to reflect the sales loads of Class A shares, and the returns in the table for Class Y shares prior to August 31, 2016 are those of Institutional Class shares. Prior to the inception of Retail Class shares (May 28, 2010), performance is that of Institutional Class shares, restated to reflect the higher net expenses and sales loads of Class A shares. Prior to the inception of Class C shares (August 31, 2016), performance is that of Retail Class shares, restated to reflect the higher net expenses and sales loads of Class C shares.

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

3 Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index is an unmanaged index that includes U.S. Treasuries, government-related issues, and investment grade U.S. corporate securities with remaining maturities of one to ten years.

4 The Fund revised its investment strategy on May 28, 2010; performance may have been different had the current investment strategy been in place for all periods shown.

5 Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

6 As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/18. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

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LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

Managers	Symbols
Christopher T. Harms	Class A    NEFLX
Clifton V. Rowe, CFA®	Class C    NECLX
Kurt L. Wagner, CFA®, CIC	Class Y    NELYX
Loomis, Sayles & Company, L.P.

Investment Goal

The Fund seeks a high current return consistent with preservation of capital.

Market Conditions

In December 2015, the Federal Reserve (the Fed) raised interest rates for the first time since June 2006. This led to modest short-term losses within investment-grade markets and added to an already challenging environment for high yield. After oil prices bottomed in mid-February, capital returned to the financial markets, and riskier assets rebounded strongly. Volatility spiked temporarily in June, following the U.K. referendum vote to leave the European Union (Brexit), but conditions generally remained calm for the rest of the period. Fixed-income markets ended September with positive 12-month returns.

Early in 2016, the Fed projected it would implement four rate hikes during the year. Yet, as of September 30, the federal funds rate target remained unchanged, and financial markets anticipated only one 25 basis point hike before year-end. The Fed consistently lowered economic projections throughout 2016, which removed some of the upward pressure on U.S. Treasury yields. Yields on securitized assets generally followed U.S. Treasury yields lower, resulting in a positive total return for the sector. The Fed still owns $1.7 trillion worth of mortgage-backed securities (MBS) and remains a powerful force in the mortgage market, reinvesting principal payments from matured securities.

Performance Results

For the 12 months ended September 30, 2016, Class A shares of the Loomis Sayles Limited Term Government and Agency Fund returned 0.93%. The Fund underperformed its benchmark, the Bloomberg Barclays U.S. 1-5 Year Government Bond Index, which returned 1.52%.

Explanation of Fund Performance

Duration (price sensitivity to interest rate changes) and yield curve (a curve that shows the relationship among bond yields across the maturity spectrum) positioning were the largest detractors from relative performance. The yield curve flattened during the period, which weighed on results given the fund’s shorter-than-benchmark duration. Exposure to agency collateralized-mortgage obligations (CMOs) had a muted effect on relative performance, as these securities narrowly lagged duration-matched Treasuries (Treasuries with similar duration, or price sensitivity to interest rate changes). However, agency CMOs contributed to the fund’s absolute return.

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LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

We maintained a large allocation (in terms of market value) to agency MBS during the period, and these securities were the largest contributors to the fund’s performance. In addition, the fund’s allocation to agency and non-agency commercial mortgage-backed securities (CMBS) also generated positive absolute and relative returns. These bonds considerably outperformed Treasuries on a duration-adjusted basis, which considers a security’s return compared to similar duration Treasuries. Out-of-benchmark exposure to asset-backed securities (ABS) also aided performance, as selected car loans performed particularly well.

Outlook

Agency MBS spreads (the difference in yield between agency MBS and Treasuries of similar maturity) remain narrow relative to history. Additionally, refinancing risk is beginning to increase, as mortgages issued in recent years are of relatively high quality compared with those issued in earlier years. Therefore, we prefer to underweight recently issued 30-year MBS, favoring sectors with less refinance risk, such as low-loan balance mortgages and home equity conversion mortgages. Within the commercial real estate sector, top-tier assets and markets have generally recovered and are at or above prior peak levels. We believe investment grade CMBS remain attractive. We also believe ABS currently offer an attractive combination of strong credit quality and enhanced yield. We favor buying higher-yielding securities and bonds of less-frequent issuers. Our analysis indicates the credit risk of these securities is inefficiently priced, and they offer attractive opportunities for additional yield.

Hypothetical Growth of $10,000 Investment in Class A Shares³

September 30, 2006 through September 30, 2016

9  |

Average Annual Total Returns — September 30, 2016³

										Expense Ratio4
	1 Year			5 Years			10 Years			Gross			Net
Class A (Inception 1/3/89)
NAV		0.93	%		1.34	%		3.20	%		0.77	%		0.77	%
With 2.25% Maximum Sales Charge		-1.37			0.89			2.96
Class C (Inception 12/30/94)
NAV		0.18			0.59			2.43			1.53			1.53
With CDSC1		-0.81			0.59			2.43
Class Y (Inception 3/31/94)
NAV		1.19			1.60			3.47			0.52			0.52
Comparative Performance
Bloomberg Barclays U.S. 1-5 Year Government Bond Index2		1.52			1.11			2.97

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit ngam.natixis.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might we on any fund distributions or when they redeem their shares.

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

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

3 Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

4 As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/17. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

1623923.1.1

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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.

All investing involves risk, including the risk of loss. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

ADDITIONAL INDEX INFORMATION

This document may contain references to third party copyrights, indexes, and trademarks, each of which is the property of its respective owner. Such owner is not affiliated with Natixis Global Asset Management or any of its related or affiliated companies (collectively “NGAM”) and does not sponsor, endorse or participate in the provision of any NGAM services, funds or other financial products.

The index information contained herein is derived from third parties and is provided on an “as is” basis. The user of this information assumes the entire risk of use of this information. Each of the third party entities involved in compiling, computing or creating index information disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to such information.

PROXY VOTING INFORMATION

A description of the Natixis Funds’ proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the funds’ website at ngam.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 the most recent 12-month period ended June 30 is available from the funds’ website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

The Natixis Funds file complete schedules 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.

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UNDERSTANDING FUND EXPENSES

As a mutual fund shareholder, you incur different costs: transaction costs, including sales charges (loads) on purchases and contingent deferred sales charges on redemptions, and ongoing costs, including management fees, distribution and/or service fees (12b-1 fees), and other fund expenses. Certain exemptions may apply. Certain exemptions may apply. These costs are described in more detail in the Funds’ prospectuses. The following examples are intended to help you understand the ongoing costs of investing in the Funds and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table of each class of Fund shares shows the actual account values and actual fund expenses you would have paid on a $1,000 investment in the Fund from April 1, 2016 through September 30, 2016. 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 to other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

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

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LOOMIS SAYLES HIGH INCOME FUND	BEGINNING ACCOUNT VALUE 4/1/2016		ENDING ACCOUNT VALUE 9/30/2016		EXPENSES PAID DURING PERIOD* 4/1/2016 – 9/30/2016
Class A
Actual		$1,000.00		$1,113.30		$5.81
Hypothetical (5% return before expenses)		$1,000.00		$1,019.50		$5.55
Class C
Actual		$1,000.00		$1,108.90		$9.75
Hypothetical (5% return before expenses)		$1,000.00		$1,015.75		$9.32
Class Y
Actual		$1,000.00		$1,115.00		$4.49
Hypothetical (5% return before expenses)		$1,000.00		$1,020.75		$4.29

* Expenses are equal to the Fund’s annualized expense ratio (after waiver/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 (183), divided by 366 (to reflect the half-year period).

LOOMIS SAYLES INTERMEDIATE DURATION BOND FUND	BEGINNING ACCOUNT VALUE 4/1/2016		ENDING ACCOUNT VALUE 9/30/2016		EXPENSES PAID DURING PERIOD 4/1/2016 – 9/30/2016
Class A
Actual		$1,000.00		$1,023.00		$3.29	1
Hypothetical (5% return before expenses)		$1,000.00		$1,021.75		$3.29	*
Class C
Actual		$1,000.00		$1,000.80		$1.15	2
Hypothetical (5% return before expenses)		$1,000.00		$1,018.00		$7.06	*
Class Y
Actual		$1,000.00		$1,024.30		$2.02	1
Hypothetical (5% return before expenses)		$1,000.00		$1,023.00		$2.02	*

* Hypothetical expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.65%, 1.40% and 0.40% 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 (183), divided by 366 (to reflect the half-year period).

¹  Actual expenses for Class A and Y are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.65% and 0.40%, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 366 (to reflect the half-year period).

²  Class C commenced operations on August 31, 2016. Actual expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.40%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal period (30), divided by 366 (to reflect the partial period).

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LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND	BEGINNING ACCOUNT VALUE 4/1/2016		ENDING ACCOUNT VALUE 9/30/2016		EXPENSES PAID DURING PERIOD* 4/1/2016 – 9/30/2016
Class A
Actual		$1,000.00		$1,006.40		$3.91
Hypothetical (5% return before expenses)		$1,000.00		$1,021.10		$3.94
Class C
Actual		$1,000.00		$1,002.60		$7.66
Hypothetical (5% return before expenses)		$1,000.00		$1,017.35		$7.72
Class Y
Actual		$1,000.00		$1,007.60		$2.66
Hypothetical (5% return before expenses)		$1,000.00		$1,022.35		$2.68

* Expenses are equal to the Fund’s annualized expense ratio: 0.78%, 1.53% and 0.53% 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 (183), divided by 366 (to reflect the half-year period).

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BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

The Board of Trustees of the Trusts (the “Board”), 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 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 (the “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 the fees charged to institutional accounts with similar strategies managed by the Adviser, if any, and to those of peer groups of funds and information about any applicable expense caps and/or fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Adviser and (v) information obtained through the completion by the Adviser of a questionnaire distributed on behalf of the Trustees. The Board, including the Independent Trustees, also considers 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, if applicable, 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, (vii) information about amounts invested by the Funds’ portfolio managers in the Funds or in similar accounts that they manage and (viii) 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 their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board 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 each Fund’s performance and fee differentials against each Fund’s peer group/category, performance ratings provided by a third-party, total return information for various periods,

15  |

and third-party performance rankings for various periods comparing a Fund against similarly categorized funds. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review Committee and/or the full Board, 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 Trustees also receive periodic updates between meetings.

The Board most recently approved the continuation of the Agreements at its meeting held in June 2016. The Agreements were continued for a one-year period for the Funds. In considering whether to approve the continuation of the Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

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.

The Trustees considered not only the advisory services provided by the Adviser to the Funds, but also the monitoring and oversight services provided by NGAM Advisors, L.P. (“NGAM Advisors”). They also considered the administrative services provided by NGAM 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 that compared the performance of the Funds to the performance of peer groups and categories of funds and the Funds’ respective performance benchmarks. In addition, the Trustees also reviewed data prepared by an independent third party that analyzed the performance of the Funds using a variety of performance metrics, including metrics that 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 median and/or category median for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Agreements. These factors included one or more of the following: (1) that the underperformance was attributable, to a significant extent, to investment decisions by the Adviser that were reasonable and

|  16

consistent with the Fund’s investment objective and policies; (2) that the Fund’s more recent performance, although lagging in certain periods, had shown improvement relative to its category; (3) that the Fund’s more recent performance was competitive when compared to relevant performance benchmarks and/or peer groups; and (4) that the Fund’s performance, although lagging the performance of its category for certain periods, was competitive when compared to relevant benchmarks or peer groups.

The Trustees also considered the Adviser’s performance and reputation generally, the performance of the fund family generally, 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 and/or other relevant factors 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 (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. 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 and the greater regulatory costs associated with the management of such assets. In evaluating each fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund, as well as the need for the Adviser to offer competitive compensation and the potential need to expend additional resources to the extent the Funds grow in size. 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 the Funds in this report have expense caps in place, and they considered the amounts waived or reimbursed by the Adviser for Funds with current expenses above the cap. The Trustees also considered that the Loomis Sayles Limited Term Government and Agency Fund is below the cap.

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 Adviser’s 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 changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about

17  |

court cases in which adviser compensation or profitability were issues and the performance of the relevant Funds, the expense levels of the Funds, 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 fee charged to each of the Funds was 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 or caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense waivers or caps for certain funds. Management explained that a number of factors are taken into account in considering the possible implementation of breakpoints or an expense cap for a fund, including, among other things, factors such as a fund’s assets, the projected growth of a fund, projected profitability and a fund’s fees and performance. With respect to economies of scale, the Trustees noted that each of the Funds was subject to an expense cap or waiver. 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 concluded, 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:

· The effect of recent market and economic events on the performance, asset levels and expense ratios of each Fund.

· 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 (if any) generated by the Funds’ securities transactions. The Trustees also considered the benefits to the parent company of NGAM Advisors from the retention of the 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.

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· The Trustees’ review and discussion of the Funds’ advisory arrangements in prior years, and management’s record of responding to Trustee concerns raised during the year and in prior years.

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 Agreements should be continued through June 30, 2017.

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Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 88.1% of Net Assets
	Non-Convertible Bonds — 84.9%
		ABS Home Equity — 1.9%
$	300,000	American Homes 4 Rent, Series 2014-SFR1, Class E, 3.031%, 6/17/2031, 144A(b)	$	294,526
	124,523	Banc of America Alternative Loan Trust, Series 2003-8, Class 1CB1, 5.500%, 10/25/2033		126,959
	112,788	Banc of America Funding Corp., Series 2007-4, Class 5A1, 5.500%, 11/25/2034		111,724
	144,445	Banc of America Funding Trust, Series 2005-7, Class 3A1, 5.750%, 11/25/2035		147,987
	216,848	Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-11, Class 4A1, 0.795%, 4/25/2035(b)		170,083
	111,499	Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-HYB7, Class 2A, 3.068%, 11/20/2035(b)(j)		98,704
	257,929	DSLA Mortgage Loan, Series 2005-AR5, Class 2A1A, 0.861%, 9/19/2045(b)		189,887
	250,000	Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2013-DN2, Class M2, 4.775%, 11/25/2023(b)		264,715
	305,000	Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2015-DNA1, Class M3, 3.825%, 10/25/2027(b)		317,172
	193,906	GMAC Mortgage Corp. Loan Trust, Series 2005-AR4, Class 3A1, 3.558%, 7/19/2035(b)		174,679
	73,490	JPMorgan Alternative Loan Trust, Series 2006-A1, Class 5A1, 2.880%, 3/25/2036(b)		52,178
	251,332	Lehman Mortgage Trust, Series 2005-3, Class 1A6, 1.025%, 1/25/2036(b)		163,172
	347,029	MASTR Adjustable Rate Mortgages Trust, Series 2005-2, Class 3A1, 3.221%, 3/25/2035(b)		296,313
	343,311	MASTR Adjustable Rate Mortgages Trust, Series 2005-2, Class 4A1, 2.920%, 3/25/2035(b)		266,022
	68,830	New York Mortgage Trust, Series 2006-1, Class 2A2, 3.005%, 5/25/2036(b)		61,601
	220,000	Vericrest Opportunity Loan Transferee, Series 2015-NP14, Class A2, 4.875%, 11/27/2045, 144A(b)		211,674
	450,053	WaMu Mortgage Pass Through Certificates, Series 2006-AR19, Class 2A, 1.943%, 1/25/2047(b)		402,398
				3,349,794
		ABS Other — 0.4%
	274,940	AIM Aviation Finance Ltd., Series 2015-1A, Class B1, 5.072%, 2/15/2040, 144A(b)		264,652
	62,877	Sierra Receivables Funding Co. LLC, Series 2011-3A, Class C, 9.310%, 7/20/2028, 144A		63,316
	450,000	Springleaf Funding Trust, Series 2014-AA, Class C, 4.450%, 12/15/2022, 144A		449,316
				777,284
		Aerospace & Defense — 2.8%
	210,000	Embraer Netherlands Finance BV, 5.050%, 6/15/2025		211,050
	95,000	Engility Corp., 8.875%, 9/01/2024, 144A		96,188
	125,000	Huntington Ingalls Industries, Inc., 5.000%, 12/15/2021, 144A		131,250
	115,000	Huntington Ingalls Industries, Inc., 5.000%, 11/15/2025, 144A		121,613
	770,000	KLX, Inc., 5.875%, 12/01/2022, 144A		796,950
	1,500,000	Meccanica Holdings USA, Inc., 6.250%, 1/15/2040, 144A		1,470,000
	900,000	Meccanica Holdings USA, Inc., 7.375%, 7/15/2039, 144A		985,500

See accompanying notes to financial statements.

|  20

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Aerospace & Defense — continued
$	620,000	TransDigm, Inc., 6.000%, 7/15/2022	$	654,100
	515,000	TransDigm, Inc., 6.500%, 7/15/2024		542,037
				5,008,688
		Airlines — 0.1%
	83,956	Virgin Australia Pass Through Trust, Series 2013-1B, 6.000%, 4/23/2022, 144A		85,215
	119,478	Virgin Australia Pass Through Trust, Series 2013-1C, 7.125%, 10/23/2018, 144A		120,972
				206,187
		Automotive — 1.3%
	195,000	Allison Transmission, Inc., 5.000%, 10/01/2024, 144A		199,875
	115,000	Goodyear Tire & Rubber Co. (The), 5.000%, 5/31/2026		118,306
	240,000	Goodyear Tire & Rubber Co. (The), 5.125%, 11/15/2023		250,200
	700,000	Midas Intermediate Holdco II LLC/Midas Intermediate Holdco II Finance, Inc., 7.875%, 10/01/2022, 144A		712,250
	310,000	Nexteer Automotive Group Ltd., 5.875%, 11/15/2021, 144A		328,600
	735,000	ZF North America Capital, Inc., 4.750%, 4/29/2025, 144A		771,750
				2,380,981
		Banking — 3.9%
	1,985,000	Ally Financial, Inc., 4.625%, 3/30/2025		2,034,625
	485,000	Ally Financial, Inc., 5.750%, 11/20/2025		507,431
	1,195,000	Commerzbank AG, 8.125%, 9/19/2023, 144A		1,374,848
	470,000	Intesa Sanpaolo SpA, 5.017%, 6/26/2024, 144A		428,906
	895,000	Intesa Sanpaolo SpA, 5.710%, 1/15/2026, 144A		843,333
	300,000	Royal Bank of Scotland Group PLC, 5.125%, 5/28/2024		300,318
	335,000	Royal Bank of Scotland Group PLC, 6.000%, 12/19/2023		349,143
	1,025,000	Royal Bank of Scotland Group PLC, 6.125%, 12/15/2022		1,086,104
				6,924,708
		Brokerage — 0.3%
	535,000	Jefferies Finance LLC/JFIN Co-Issuer Corp., 6.875%, 4/15/2022, 144A		497,550
		Building Materials — 1.5%
	890,000	Atrium Windows & Doors, Inc., 7.750%, 5/01/2019, 144A		799,887
	350,000	Cemex SAB de CV, 7.750%, 4/16/2026, 144A		388,325
	50,000	Masco Corp., 6.500%, 8/15/2032		55,000
	345,000	Masco Corp., 7.750%, 8/01/2029		412,275
	245,000	NCI Building Systems, Inc., 8.250%, 1/15/2023, 144A		266,438
	180,000	U.S. Concrete, Inc., 6.375%, 6/01/2024		186,750
	555,000	Vulcan Materials Co., 4.500%, 4/01/2025		599,400
				2,708,075
		Cable Satellite — 7.2%
	795,000	Altice Financing S.A., 6.625%, 2/15/2023, 144A		815,869
	170,000	Cablevision S.A., 6.500%, 6/15/2021, 144A		177,438
	475,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.125%, 2/15/2023		495,187
	625,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.125%, 5/01/2023, 144A		652,344
	430,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.250%, 9/30/2022		449,350
	15,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.750%, 1/15/2024		15,938

See accompanying notes to financial statements.

21  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Cable Satellite — continued
$	865,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.750%, 2/15/2026, 144A	$	916,900
	760,000	CSC Holdings LLC, 5.250%, 6/01/2024		722,000
	75,000	CSC Holdings LLC, 6.750%, 11/15/2021		79,313
	220,000	CSC Holdings LLC, 10.125%, 1/15/2023, 144A		253,550
	200,000	CSC Holdings LLC, 10.875%, 10/15/2025, 144A		234,250
	895,000	DISH DBS Corp., 5.125%, 5/01/2020		928,562
	1,620,000	DISH DBS Corp., 5.875%, 11/15/2024		1,599,750
	295,000	DISH DBS Corp., 7.750%, 7/01/2026, 144A		313,437
	150,000	Sirius XM Radio, Inc., 5.750%, 8/01/2021, 144A		157,050
	1,485,000	Unitymedia GmbH, 6.125%, 1/15/2025, 144A		1,557,394
	515,000	Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH, 5.000%, 1/15/2025, 144A		521,437
	265,000	Virgin Media Finance PLC, 6.000%, 10/15/2024, 144A		274,278
	485,000	Virgin Media Finance PLC, 6.375%, 4/15/2023, 144A		509,250
	375,000	Virgin Media Secured Finance PLC, 5.500%, 1/15/2025, 144A		383,437
	595,000	Virgin Media Secured Finance PLC, 5.500%, 8/15/2026, 144A		606,900
	141,963	Wave Holdco LLC/Wave Holdco Corp., PIK, 8.250%, 7/15/2019, 144A(c)		142,673
	840,000	Ziggo Secured Finance BV, 5.500%, 1/15/2027, 144A		838,950
				12,645,257
		Chemicals — 0.8%
	1,510,000	Hercules, Inc., 6.500%, 6/30/2029		1,359,000
		Construction Machinery — 0.5%
	800,000	United Rentals North America, Inc., 5.750%, 11/15/2024		830,000
		Consumer Cyclical Services — 0.9%
	455,000	Interval Acquisition Corp., 5.625%, 4/15/2023		469,788
	1,095,000	ServiceMaster Co. LLC (The), 7.450%, 8/15/2027		1,163,985
				1,633,773
		Consumer Products — 0.2%
	290,000	Avon International Operations, Inc., 7.875%, 8/15/2022, 144A		299,425
		Electric — 1.7%
	520,000	AES Corp. (The), 5.500%, 4/15/2025		534,950
	150,000	AES Corp. (The), 6.000%, 5/15/2026		158,625
	1,502,000	Enel SpA, (fixed rate to 9/24/2023, variable rate thereafter), 8.750%, 9/24/2073, 144A		1,755,463
	425,000	NRG Energy, Inc., 6.250%, 7/15/2022		431,375
	100,000	NRG Energy, Inc., 6.625%, 3/15/2023		101,000
	8,608	Red Oak Power LLC, Series A, 8.540%, 11/30/2019		8,619
				2,990,032
		Environmental — 0.3%
	335,000	GFL Environmental, Inc., 7.875%, 4/01/2020, 144A		353,425
	95,000	GFL Environmental, Inc., 9.875%, 2/01/2021, 144A		104,025
				457,450

See accompanying notes to financial statements.

|  22

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Finance Companies — 5.5%
$	740,000	AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 4.500%, 5/15/2021	$	774,225
	685,000	AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, 5.000%, 10/01/2021		731,238
	515,000	Aircastle Ltd., 5.500%, 2/15/2022		554,913
	600,000	iStar, Inc., 4.000%, 11/01/2017		601,500
	505,000	iStar, Inc., 5.000%, 7/01/2019		503,677
	1,015,000	Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 5.875%, 8/01/2021, 144A		964,250
	585,000	Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 7.375%, 10/01/2017		589,388
	870,000	Navient Corp., 5.000%, 10/26/2020		858,037
	200,000	Navient Corp., 5.875%, 3/25/2021		199,250
	435,000	Oxford Finance LLC/Oxford Finance Co-Issuer, Inc., 7.250%, 1/15/2018, 144A		434,456
	540,000	Provident Funding Associates LP/PFG Finance Corp., 6.750%, 6/15/2021, 144A		544,725
	1,335,000	Quicken Loans, Inc., 5.750%, 5/01/2025, 144A		1,324,987
	1,110,000	Springleaf Finance Corp., 7.750%, 10/01/2021		1,164,112
	405,000	Unifin Financiera SAB de CV SOFOM ENR, 7.250%, 9/27/2023, 144A		403,481
				9,648,239
		Financial Other — 1.3%
	565,000	Icahn Enterprises LP/Icahn Enterprises Finance Corp, 6.000%, 8/01/2020		567,825
	695,000	Icahn Enterprises LP/Icahn Enterprises Finance Corp., 4.875%, 3/15/2019		698,475
	180,000	Icahn Enterprises LP/Icahn Enterprises Finance Corp., 5.875%, 2/01/2022		172,800
	804,000	Rialto Holdings LLC/Rialto Corp., 7.000%, 12/01/2018, 144A		816,060
				2,255,160
		Food & Beverage — 1.2%
	1,800,000	BRF S.A., 7.750%, 5/22/2018, 144A, (BRL)		513,629
	840,000	Cosan Luxembourg S.A., 7.000%, 1/20/2027, 144A		876,750
	305,000	JBS USA LLC/JBS USA Finance, Inc., 5.750%, 6/15/2025, 144A		299,663
	20,000	JBS USA LLC/JBS USA Finance, Inc., 7.250%, 6/01/2021, 144A		20,675
	385,000	Marfrig Holdings Europe BV, 8.000%, 6/08/2023, 144A		393,662
				2,104,379
		Gaming — 1.2%
	175,000	Boyd Gaming Corp., 6.375%, 4/01/2026, 144A		187,688
	375,000	GLP Capital LP/GLP Financing II, Inc., 5.375%, 4/15/2026		403,125
	725,000	MGM Resorts International, 6.000%, 3/15/2023		786,625
	600,000	MGM Resorts International, 6.750%, 10/01/2020		672,000
				2,049,438
		Government Owned – No Guarantee — 2.3%
	725,000	Petrobras Global Finance BV, 4.875%, 3/17/2020		726,813
	600,000	Petrobras Global Finance BV, 5.375%, 1/27/2021		593,400
	530,000	Petrobras Global Finance BV, 6.250%, 3/17/2024		515,425
	300,000	Petrobras Global Finance BV, 8.375%, 5/23/2021		327,750
	160,521(††)	Petroleos Mexicanos, 7.190%, 9/12/2024, 144A, (MXN)		764,594
	129,850(††)	Petroleos Mexicanos, 7.470%, 11/12/2026, (MXN)		580,830
	510,000	YPF S.A., 31.354%, 7/07/2020, 144A(b)		594,150
				4,102,962

See accompanying notes to financial statements.

23  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Health Insurance — 0.2%
$	365,000	Centene Corp., 6.125%, 2/15/2024	$	396,025
		Healthcare — 4.3%
	360,000	Amsurg Corp., 5.625%, 7/15/2022		368,100
	960,000	CHS/Community Health Systems, Inc., 6.875%, 2/01/2022		825,600
	145,000	Fresenius Medical Care U.S. Finance II, Inc., 4.750%, 10/15/2024, 144A		152,250
	260,000	HCA, Inc., 5.375%, 2/01/2025		268,450
	170,000	HCA, Inc., 7.050%, 12/01/2027		180,838
	655,000	HCA, Inc., 7.500%, 12/15/2023		726,231
	145,000	HCA, Inc., 7.500%, 11/06/2033		157,144
	590,000	HCA, Inc., 7.690%, 6/15/2025		663,107
	480,000	HCA, Inc., 8.360%, 4/15/2024		557,318
	820,000	HCA, Inc., MTN, 7.580%, 9/15/2025		924,550
	515,000	HCA, Inc., MTN, 7.750%, 7/15/2036		558,131
	305,000	LifePoint Health, Inc., 5.500%, 12/01/2021		317,963
	65,000	MEDNAX, Inc., 5.250%, 12/01/2023, 144A		68,331
	235,000	Team Health, Inc., 7.250%, 12/15/2023, 144A		252,919
	310,000	Tenet Healthcare Corp., 5.000%, 3/01/2019		303,025
	675,000	Tenet Healthcare Corp., 6.750%, 6/15/2023		627,750
	705,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		579,862
				7,531,569
		Home Construction — 1.3%
	25,000	Beazer Homes USA, Inc., 8.750%, 3/15/2022, 144A		26,375
	1,200,000	Corporacion GEO SAB de CV, 8.875%, 3/27/2022, 144A(d)(e)(j)		12
	750,000	K. Hovnanian Enterprises, Inc., 5.000%, 11/01/2021(e)(f)		525,000
	800,000	Lennar Corp., 4.750%, 5/30/2025		812,000
	915,000	TRI Pointe Holdings, Inc./TRI Pointe Group, Inc., 4.375%, 6/15/2019		941,306
	200,000	Urbi Desarrollos Urbanos SAB de CV, 9.500%, 1/21/2020, 144A(d)(e)(j)		2
	900,000	Urbi Desarrollos Urbanos SAB de CV, 9.750%, 2/03/2022, 144A(d)(e)(j)		9
				2,304,704
		Independent Energy — 7.5%
	1,205,000	Antero Resources Corp., 5.125%, 12/01/2022		1,214,037
	110,000	Antero Resources Corp., 5.375%, 11/01/2021		111,238
	685,000	Baytex Energy Corp., 5.625%, 6/01/2024, 144A		558,275
	370,000	Bonanza Creek Energy, Inc., 5.750%, 2/01/2023		168,350
	650,000	Bonanza Creek Energy, Inc., 6.750%, 4/15/2021		295,750
	90,000	California Resources Corp., 5.500%, 9/15/2021		47,700
	41,000	California Resources Corp., 6.000%, 11/15/2024		19,578
	140,000	Callon Petroleum Co., 6.125%, 10/01/2024, 144A		144,900
	153,000	Chesapeake Energy Corp., 4.875%, 4/15/2022		128,903
	8,000	Chesapeake Energy Corp., 5.750%, 3/15/2023		6,800
	13,000	Chesapeake Energy Corp., 6.125%, 2/15/2021		11,928
	34,000	Chesapeake Energy Corp., 6.625%, 8/15/2020		32,003
	70,000	Concho Resources, Inc., 5.500%, 10/01/2022		72,625
	125,000	Concho Resources, Inc., 5.500%, 4/01/2023		128,906
	795,000	CONSOL Energy, Inc., 5.875%, 4/15/2022		731,400
	645,000	Continental Resources, Inc., 3.800%, 6/01/2024		590,175

See accompanying notes to financial statements.

|  24

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Independent Energy — continued
$	235,000	Continental Resources, Inc., 4.500%, 4/15/2023	$	225,600
	470,000	Continental Resources, Inc., 5.000%, 9/15/2022		468,825
	690,000	Eclipse Resources Corp., 8.875%, 7/15/2023		672,319
	170,000	Halcon Resources Corp., 8.625%, 2/01/2020, 144A		170,850
	145,000	Matador Resources Co., 6.875%, 4/15/2023		150,075
	410,000	MEG Energy Corp., 6.375%, 1/30/2023, 144A		324,412
	250,000	MEG Energy Corp., 6.500%, 3/15/2021, 144A		204,062
	585,000	MEG Energy Corp., 7.000%, 3/31/2024, 144A		462,150
	185,000	Newfield Exploration Co., 5.625%, 7/01/2024		189,625
	625,000	Oasis Petroleum, Inc., 6.875%, 3/15/2022		598,437
	100,000	PDC Energy, Inc., 6.125%, 9/15/2024, 144A		103,500
	405,000	QEP Resources, Inc., 5.250%, 5/01/2023		398,925
	520,000	QEP Resources, Inc., 5.375%, 10/01/2022		516,100
	1,150,000	Rex Energy Corp., (Step to 8.000% on 10/01/2017), 1.000%, 10/01/2020(g)		626,750
	1,025,000	Rice Energy, Inc., 6.250%, 5/01/2022		1,058,312
	565,000	RSP Permian, Inc., 6.625%, 10/01/2022		591,837
	330,000	Sanchez Energy Corp., 6.125%, 1/15/2023		264,825
	920,000	SM Energy Co., 5.000%, 1/15/2024		864,800
	35,000	SM Energy Co., 6.125%, 11/15/2022		35,000
	250,000	SM Energy Co., 6.750%, 9/15/2026		252,500
	395,000	Southwestern Energy Co., 6.700%, 1/23/2025		395,000
	55,000	Whiting Petroleum Corp., 5.000%, 3/15/2019		53,213
	455,000	Whiting Petroleum Corp., 5.750%, 3/15/2021		425,425
				13,315,110
		Industrial Other — 0.2%
	330,000	Broadspectrum Ltd., 8.375%, 5/15/2020, 144A		351,450
		Integrated Energy — 0.1%
	100,000	Pacific Exploration and Production Corp., 5.125%, 3/28/2023, 144A(d)		18,500
	800,000	Pacific Exploration and Production Corp., 5.375%, 1/26/2019, 144A(d)		148,000
	580,000	Pacific Exploration and Production Corp., 5.625%, 1/19/2025, 144A(d)		107,300
				273,800
		Life Insurance — 0.2%
	340,000	CNO Financial Group, Inc., 5.250%, 5/30/2025		337,450
		Lodging — 0.1%
	150,000	Hilton Domestic Operating Co., Inc., 4.250%, 9/01/2024, 144A		153,000
		Media Entertainment — 0.9%
	470,000	Clear Channel Worldwide Holdings, Inc., 7.625%, 3/15/2020		465,887
	1,155,000	Clear Channel Worldwide Holdings, Inc., Series B, 6.500%, 11/15/2022		1,202,644
				1,668,531
		Metals & Mining — 2.6%
	200,000	Anglo American Capital PLC, 4.125%, 9/27/2022, 144A		198,000
	200,000	Anglo American Capital PLC, 4.875%, 5/14/2025, 144A		204,000
	1,395,000	ArcelorMittal, 7.750%, 3/01/2041		1,454,287
	180,000	Constellium NV, 4.625%, 5/15/2021, 144A, (EUR)		179,455
	460,000	Essar Steel Algoma, Inc., 9.500%, 11/15/2019, 144A(d)(e)(f)		62,100

See accompanying notes to financial statements.

25  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Metals & Mining — continued
$	175,000	First Quantum Minerals Ltd., 7.000%, 2/15/2021, 144A	$	156,625
	270,000	First Quantum Minerals Ltd., 7.250%, 5/15/2022, 144A		238,950
	1,375,000	Freeport-McMoRan, Inc., 4.550%, 11/14/2024		1,246,094
	85,000	Freeport-McMoRan, Inc., 5.450%, 3/15/2043		68,213
	245,000	Glencore Finance Canada Ltd., 5.550%, 10/25/2042, 144A		236,660
	440,000	Lundin Mining Corp., 7.500%, 11/01/2020, 144A		467,500
				4,511,884
		Midstream — 5.5%
	250,000	Access Midstream Partners LP/ACMP Finance Corp., 4.875%, 3/15/2024		252,678
	200,000	Gibson Energy, Inc., 6.750%, 7/15/2021, 144A		204,500
	40,000	Kinder Morgan Energy Partners LP, 3.450%, 2/15/2023		39,874
	60,000	Kinder Morgan Energy Partners LP, 3.500%, 9/01/2023		60,093
	75,000	Kinder Morgan Energy Partners LP, 4.700%, 11/01/2042		69,185
	30,000	Kinder Morgan Energy Partners LP, 5.000%, 3/01/2043		28,218
	270,000	MPLX LP, 4.875%, 12/01/2024		279,268
	570,000	NGL Energy Partners LP/NGL Energy Finance Corp., 5.125%, 7/15/2019		538,650
	365,000	NGL Energy Partners LP/NGL Energy Finance Corp., 6.875%, 10/15/2021		345,838
	445,000	Regency Energy Partners LP/Regency Energy Finance Corp., 4.500%, 11/01/2023		447,997
	295,000	Regency Energy Partners LP/Regency Energy Finance Corp., 5.875%, 3/01/2022		325,289
	385,000	Rose Rock Midstream LP/Rose Rock Finance Corp., 5.625%, 7/15/2022		354,200
	985,000	Sabine Pass Liquefaction LLC, 5.625%, 2/01/2021		1,040,406
	480,000	Sabine Pass Liquefaction LLC, 5.625%, 3/01/2025		516,000
	425,000	Sabine Pass Liquefaction LLC, 6.250%, 3/15/2022		464,313
	935,000	Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 5.500%, 8/15/2022		890,587
	1,863,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 4.125%, 11/15/2019		1,889,082
	95,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 4.250%, 11/15/2023		91,794
	640,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 5.250%, 5/01/2023		648,000
	300,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 6.375%, 8/01/2022		310,500
	15,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 6.875%, 2/01/2021		15,488
	355,000	Tesoro Logistics LP/Tesoro Logistics Finance Corp., 5.500%, 10/15/2019		378,075
	360,000	Tesoro Logistics LP/Tesoro Logistics Finance Corp., 6.250%, 10/15/2022		384,300
	180,000	Western Refining Logistics LP/WNRL Finance Corp., 7.500%, 2/15/2023		184,500
				9,758,835
		Non-Agency Commercial Mortgage-Backed Securities — 2.0%
	935,000	BXHTL Mortgage Trust, Series 2015-DRMZ, Class M, 8.717%, 5/15/2020, 144A(b)(e)(f)		908,874
	1,690,000	GS Mortgage Securities Trust, Series 2007-GG10, Class AM, 5.988%, 8/10/2045(b)		1,626,671

See accompanying notes to financial statements.

|  26

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Non-Agency Commercial Mortgage-Backed Securities — continued
$	805,000	Hilton USA Trust, Series 2013-HLT, Class EFX, 5.609%, 11/05/2030, 144A(b)	$	806,242
	125,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class AM, 5.464%, 1/15/2049(b)		122,546
				3,464,333
		Oil Field Services — 0.6%
	130,000	Diamond Offshore Drilling, Inc., 4.875%, 11/01/2043		90,212
	430,000	Ensco PLC, 5.750%, 10/01/2044		262,595
	160,000	Noble Holding International Ltd., 5.250%, 3/15/2042		90,400
	160,000	Noble Holding International Ltd., 6.050%, 3/01/2041		94,400
	435,000	Paragon Offshore PLC, 6.750%, 7/15/2022, 144A(d)		120,712
	905,000	Paragon Offshore PLC, 7.250%, 8/15/2024, 144A(d)		251,137
	35,000	Parker Drilling Co., 6.750%, 7/15/2022		27,125
	100,000	Rowan Cos., Inc., 5.850%, 1/15/2044		68,750
				1,005,331
		Packaging — 1.4%
	200,000	ARD Finance S.A., PIK, 7.125%, 9/15/2023, 144A(h)		199,000
	395,000	Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc., 4.625%, 5/15/2023, 144A		396,975
	200,000	Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc., 7.250%, 5/15/2024, 144A		213,000
	755,000	Sealed Air Corp., 6.875%, 7/15/2033, 144A		809,737
	775,000	Signode Industrial Group Lux S.A./Signode Industrial Group U.S., Inc., 6.375%, 5/01/2022, 144A		784,688
				2,403,400
		Pharmaceuticals — 2.4%
	1,540,000	Valeant Pharmaceuticals International, 6.375%, 10/15/2020, 144A		1,443,750
	530,000	Valeant Pharmaceuticals International, 7.250%, 7/15/2022, 144A		491,575
	265,000	Valeant Pharmaceuticals International, Inc., 5.500%, 3/01/2023, 144A		226,575
	85,000	Valeant Pharmaceuticals International, Inc., 5.625%, 12/01/2021, 144A		75,863
	2,015,000	Valeant Pharmaceuticals International, Inc., 5.875%, 5/15/2023, 144A		1,737,937
	335,000	VRX Escrow Corp., 5.375%, 3/15/2020, 144A		309,875
				4,285,575
		Property & Casualty Insurance — 0.4%
	786,000	HUB International Ltd., 7.875%, 10/01/2021, 144A		801,720
		Refining — 0.2%
	230,000	Ultrapar International S.A., 5.250%, 10/06/2026, 144A		228,275
	140,000	Western Refining, Inc., 6.250%, 4/01/2021		138,250
				366,525
		Retailers — 1.2%
	40,000	Dillard’s, Inc., 7.000%, 12/01/2028		45,798
	435,000	Dillard’s, Inc., 7.750%, 7/15/2026		500,815
	205,000	Dillard’s, Inc., 7.750%, 5/15/2027		238,825
	35,000	Dillard’s, Inc., 7.875%, 1/01/2023		42,044
	1,035,000	GameStop Corp., 5.500%, 10/01/2019, 144A		1,056,994

See accompanying notes to financial statements.

27  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Retailers — continued
$	115,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018	$	119,025
	520,000	Nine West Holdings, Inc., 6.125%, 11/15/2034		67,600
				2,071,101
		Supermarkets — 0.7%
	335,000	Albertsons Cos. LLC/Safeway, Inc./New Albertson’s/Albertson’s LLC, 5.750%, 3/15/2025, 144A		334,163
	935,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		860,200
				1,194,363
		Supranational — 2.4%
	30,700,000	European Bank for Reconstruction & Development, GMTN, 6.400%, 3/04/2019, (INR)		456,617
	5,420,000,000	International Bank for Reconstruction & Development, 4.500%, 8/03/2017, (COP)		1,841,618
	21,150,000	International Bank for Reconstruction & Development, Series GDIF, 5.000%, 5/24/2017, (INR)		313,692
	100,890,000	International Finance Corp., 7.800%, 6/03/2019, (INR)		1,575,130
				4,187,057
		Technology — 7.2%
	1,545,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		1,709,156
	1,930,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		2,103,700
	550,000	Blackboard, Inc., 7.750%, 11/15/2019, 144A		541,750
	170,000	Camelot Finance S.A., 7.875%, 10/15/2024, 144A		175,313
	60,000	CommScope Technologies Finance LLC, 6.000%, 6/15/2025, 144A		63,975
	75,000	CommScope, Inc., 4.375%, 6/15/2020, 144A		77,250
	330,000	CommScope, Inc., 5.000%, 6/15/2021, 144A		341,550
	190,000	Diamond 1 Finance Corp./Diamond 2 Finance Corp., 5.875%, 6/15/2021, 144A		201,870
	1,440,000	Diamond 1 Finance Corp./Diamond 2 Finance Corp., 6.020%, 6/15/2026, 144A		1,578,676
	580,000	Diamond 1 Finance Corp./Diamond 2 Finance Corp., 7.125%, 6/15/2024, 144A		637,912
	480,000	Equinix, Inc., 5.375%, 1/01/2022		507,600
	430,000	First Data Corp., 5.000%, 1/15/2024, 144A		436,450
	800,000	First Data Corp., 7.000%, 12/01/2023, 144A		846,000
	200,000	IMS Health, Inc., 5.000%, 10/15/2026, 144A		208,000
	55,000	Micron Technology, Inc., 5.250%, 1/15/2024, 144A		52,800
	360,000	Micron Technology, Inc., 5.500%, 2/01/2025		352,800
	210,000	Microsemi Corp., 9.125%, 4/15/2023, 144A		239,400
	515,000	Open Text Corp., 5.625%, 1/15/2023, 144A		525,300
	190,000	Open Text Corp., 5.875%, 6/01/2026, 144A		198,788
	275,000	Sabre GLBL, Inc., 5.250%, 11/15/2023, 144A		279,812
	405,000	Sabre GLBL, Inc., 5.375%, 4/15/2023, 144A		416,137
	235,000	Western Digital Corp., 7.375%, 4/01/2023, 144A		258,500
	755,000	Western Digital Corp., 10.500%, 4/01/2024, 144A		875,800
				12,628,539
		Transportation Services — 0.1%
	275,000	APL Ltd., 8.000%, 1/15/2024(e)(f)		181,500

See accompanying notes to financial statements.

|  28

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Treasuries — 1.7%
	55,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2035, (EUR)(g)	$	36,392
	55,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2036, (EUR)(g)		36,512
	20,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2041, (EUR)(g)		13,052
	107,066(††)	Mexican Fixed Rate Bonds, Series M, 4.750%, 6/14/2018, (MXN)		547,216
	142,200(††)	Mexican Fixed Rate Bonds, Series M, 5.750%, 3/05/2026, (MXN)		719,122
	131,500(††)	Mexican Fixed Rate Bonds, Series M, 6.500%, 6/10/2021, (MXN)		698,713
	151,030(††)	Mexican Fixed Rate Bonds, Series M-20, 10.000%, 12/05/2024, (MXN)		983,998
				3,035,005
		Wireless — 3.7%
	100,000	Altice Luxembourg S.A., 7.250%, 5/15/2022, 144A, (EUR)		118,401
	355,000	Altice Luxembourg S.A., 7.625%, 2/15/2025, 144A		363,875
	785,000	Altice Luxembourg S.A., 7.750%, 5/15/2022, 144A		837,988
	6,000,000	America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)		301,396
	6,100,000	America Movil SAB de CV, 8.460%, 12/18/2036, (MXN)		311,363
	605,000	SFR Group S.A., 7.375%, 5/01/2026, 144A		618,425
	786,000	Sprint Capital Corp., 6.875%, 11/15/2028		737,858
	1,420,000	Sprint Corp., 7.250%, 9/15/2021		1,425,325
	605,000	T-Mobile USA, Inc., 6.000%, 4/15/2024		647,350
	370,000	T-Mobile USA, Inc., 6.125%, 1/15/2022		393,125
	515,000	T-Mobile USA, Inc., 6.731%, 4/28/2022		540,750
	200,000	Wind Acquisition Finance S.A., 4.750%, 7/15/2020, 144A		201,500
				6,497,356
		Wirelines — 2.7%
	705,000	CenturyLink, Inc., 7.650%, 3/15/2042		608,062
	30,000	CenturyLink, Inc., Series T, 5.800%, 3/15/2022		30,750
	130,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		123,663
	60,000,000	Empresa de Telecomunicaniones de Bogota, 7.000%, 1/17/2023, 144A, (COP)		15,138
	405,000	Frontier Communications Corp., 9.000%, 8/15/2031		372,600
	340,000	Frontier Communications Corp., 10.500%, 9/15/2022		360,400
	15,000	Frontier Communications Corp., 11.000%, 9/15/2025		15,656
	705,000	Level 3 Communications, Inc., 5.750%, 12/01/2022		736,725
	1,545,000	Level 3 Financing, Inc., 5.250%, 3/15/2026, 144A		1,595,212
	345,000	Telecom Italia Capital S.A., 6.375%, 11/15/2033		351,038
	35,000	Telecom Italia Capital S.A., 7.721%, 6/04/2038		38,325
	450,000	Telecom Italia SpA, 5.303%, 5/30/2024, 144A		460,066
				4,707,635
		Total Non-Convertible Bonds (Identified Cost $150,365,268)		149,660,180
	Convertible Bonds — 3.2%
		Building Materials — 0.0%
	25,000	CalAtlantic Group, Inc., 0.250%, 6/01/2019		23,156

See accompanying notes to financial statements.

29  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Diversified Operations — 0.1%
$	160,000	RWT Holdings, Inc., 5.625%, 11/15/2019	$	162,000
		Healthcare — 0.3%
	595,000	Brookdale Senior Living, Inc., 2.750%, 6/15/2018		590,909
		Leisure — 0.4%
	685,000	Rovi Corp., 0.500%, 3/01/2020		682,623
		Media Entertainment — 0.2%
	265,000	Liberty Media Corp., 2.250%, 9/30/2046, 144A		275,103
		Metals & Mining — 0.0%
	25,000	RTI International Metals, Inc., 1.625%, 10/15/2019		26,656
		Midstream — 0.6%
	1,068,000	Whiting Petroleum Corp., Series 2, 1.250%, 6/05/2020		1,025,280
		Pharmaceuticals — 0.8%
	604,000	BioMarin Pharmaceutical, Inc., 1.500%, 10/15/2020		753,113
	765,000	Ionis Pharmaceuticals, Inc., 1.000%, 11/15/2021		711,928
				1,465,041
		Technology — 0.8%
	30,000	Advanced Micro Devices, Inc., 2.125%, 9/01/2026		32,625
	5,000	CalAmp Corp., 1.625%, 5/15/2020		4,625
	260,000	Cypress Semiconductor Corp., 4.500%, 1/15/2022, 144A		293,963
	180,000	Micron Technology, Inc., Series G, 3.000%, 11/15/2043		159,975
	845,000	Nuance Communications, Inc., 1.000%, 12/15/2035, 144A		735,150
	205,000	Viavi Solutions, Inc., 0.625%, 8/15/2033		203,975
				1,430,313
		Total Convertible Bonds (Identified Cost $5,745,898)		5,681,081
		Total Bonds and Notes (Identified Cost $156,111,166)		155,341,261
	Senior Loans — 1.8%
		Consumer Cyclical Services — 0.2%
	468,419	SourceHov LLC, 2014 1st Lien Term Loan, 7.750%, 10/31/2019(b)		390,544
		Independent Energy — 0.3%
	531,086	Chesapeake Energy Corp., Term Loan, 8.500%, 8/23/2021(b)		557,141
		Media Entertainment — 0.0%
	26,479	Dex Media, Inc., Term Loan, 11.000%, 7/29/2021(b)		25,222
		Other Utility — 0.2%
	239,982	PowerTeam Services LLC, 1st Lien Term Loan, 4.250%, 5/06/2020(b)		239,082
	95,000	PowerTeam Services LLC, 2nd Lien Term Loan, 8.250%, 11/06/2020(b)		94,525
				333,607
		Supermarkets — 0.3%
	467,128	Albertson’s LLC, 2016 Term Loan B4, 4.500%, 8/25/2021(b)		470,524
		Transportation Services — 0.0%
	82,401	OSG Bulk Ships, Inc., OBS Term Loan, 5.250%, 8/05/2019(b)		82,091

See accompanying notes to financial statements.

|  30

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Wirelines — 0.8%
$	1,206,250	Fairpoint Communications, Inc., Refi Term Loan, 7.500%, 2/14/2019(b)	$	1,205,599
	159,324	Integra Telecom, Inc., 2nd Lien Term Loan, 9.750%, 2/12/2021(b)(e)(f)		150,561
				1,356,160
		Total Senior Loans (Identified Cost $3,297,748)		3,215,289
Shares
	Preferred Stocks — 2.2%
	Convertible Preferred Stocks — 1.9%
		Food & Beverage — 0.2%
	3,415	Bunge Ltd., 4.875%		324,791
		Midstream — 0.3%
	988	Chesapeake Energy Corp., 5.750%(i)		522,405
	20	Chesapeake Energy Corp., 5.750%, 144A(i)		10,575
	137	Chesapeake Energy Corp., 5.750%(i)		71,326
				604,306
		Pharmaceuticals — 1.0%
	888	Allergan PLC, Series A, 5.500%		729,608
	1,439	Teva Pharmaceutical Industries Ltd., 7.000%		1,165,014
				1,894,622
		REITs – Mortgage — 0.1%
	2,107	iStar, Inc., Series J, 4.500%		103,095
		Technology — 0.3%
	4,850	Belden, Inc., 6.750%		487,085
		Total Convertible Preferred Stocks (Identified Cost $3,807,099)		3,413,899
	Non-Convertible Preferred Stocks — 0.3%
		Finance Companies — 0.3%
	12,925	iStar, Inc., Series E, 7.875%		314,466
	7,500	iStar, Inc., Series F, 7.800%		183,075
	550	iStar, Inc., Series G, 7.650%		13,233
				510,774
		Total Non-Convertible Preferred Stocks (Identified Cost $417,822)		510,774
		Total Preferred Stocks (Identified Cost $4,224,921)		3,924,673
	Other Investments — 0.6%
		Aircraft ABS — 0.6%
	100	ECAF I Blocker Ltd.(e)(j) (Identified Cost $1,000,000)		985,586

See accompanying notes to financial statements.

31  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

Shares		Description	Value (†)
	Common Stocks — 0.7%
		Energy Equipment & Services — 0.0%
	4,625	Hercules Offshore, Inc.(i)	$	8,001
		Internet Software & Services — 0.0%
	4,113	Dex Media, Inc.(i)(j)		8,177
		Oil, Gas & Consumable Fuels — 0.5%
	12,992	Halcon Resources Corp.(i)		121,865
	14,882	Kinder Morgan, Inc.		344,221
	17,250	Rex Energy Corp.(i)		10,072
	49,233	Whiting Petroleum Corp.(i)		430,296
				906,454
		Pharmaceuticals — 0.2%
	5,539	Bristol-Myers Squibb Co.		298,663
		Total Common Stocks (Identified Cost $3,087,477)		1,221,295
	Warrants — 0.0%
	22,512	Kinder Morgan, Inc., Expiration on 5/25/2017 at $40.00(i)		349
	10,360	FairPoint Communications, Inc., Expiration on 1/24/2018 at $48.81(e)(i)(j)		—
	3,528	Halcon Resources Corp., Expiration on 9/9/2020 at $14.04(i)(j)		5,383
		Total Warrants (Identified Cost $29,891)		5,732
Principal Amount (‡)
	Short-Term Investments — 5.5%
$	9,627,235	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $9,627,259 on 10/03/2016 collateralized by $8,940,000 U.S. Treasury Note, 2.750% due 2/15/2024 valued at $9,822,825 including accrued interest (Note 2 of Notes to Financial Statements)		9,627,235
	12,523	Repurchase Agreement with State Street Bank and Trust Company, dated 9/30/2016 at 0.000% to be repurchased at $12,523 on 10/03/2016 collateralized by $12,600 U.S. Treasury Note, 1.500% due 8/31/2018 valued at $12,786 including accrued interest (Note 2 of Notes to Financial Statements)		12,523
		Total Short-Term Investments (Identified Cost $9,639,758)		9,639,758
		Total Investments — 98.9% (Identified Cost $177,390,961)(a)		174,333,594
		Other assets less liabilities — 1.1%		1,942,867
		Net Assets — 100.0%	$	176,276,461
	(‡)	Principal Amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 100.

See accompanying notes to financial statements.

|  32

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

(a)	Federal Tax Information:
	At September 30, 2016, the net unrealized depreciation on investments based on a cost of $177,504,166 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	$	9,142,529
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(12,313,101	)
	Net unrealized depreciation	$	(3,170,572	)
(b)	Variable rate security. Rate as of September 30, 2016 is disclosed.
(c)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities. For the period ended September 30, 2016, interest payments were made in cash and additional debt securities.
(d)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
(e)	Illiquid security. (Unaudited)
(f)	Securities classified as fair valued pursuant to the Fund’s pricing policies and procedures. At September 30, 2016, the value of these securities amounted to $1,828,035 or 1.0% of net assets. See Note 2 of Notes to Financial Statements.
(g)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(h)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities. For the period ended September 30, 2016, the issuer has not made any interest payments.
(i)	Non-income producing security.
(j)	Fair valued by the Fund’s adviser. At September 30, 2016, the value of these securities amounted to $1,097,873 or 0.6% of net assets. See Note 2 of Notes to Financial Statements.
144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2016, the value of Rule 144A holdings amounted to $60,581,057 or 34.4% of net assets.
ABS	Asset-Backed Securities
GMTN	Global Medium Term Note
MTN	Medium Term Note
PIK	Payment-in-Kind
REITs	Real Estate Investment Trusts
BRL	Brazilian Real
COP	Colombian Peso
EUR	Euro
INR	Indian Rupee
MXN	Mexican Peso

See accompanying notes to financial statements.

33  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles High Income Fund – (continued)

At September 30, 2016, the Fund had the following open forward foreign currency contracts:

Contract to Buy/Sell	Delivery Date		Currency	Units of Currency		Notional Value		Unrealized Appreciation (Depreciation)
Sell1		12/21/2016	Euro		170,000	$	191,659	$	233

¹ Counterparty is Bank of America, N.A.

Industry Summary at September 30, 2016

Technology	8.3	%
Independent Energy	7.8
Cable Satellite	7.2
Midstream	6.4
Finance Companies	5.8
Healthcare	4.6
Pharmaceuticals	4.4
Banking	3.9
Wireless	3.7
Wirelines	3.5
Aerospace & Defense	2.8
Metals & Mining	2.6
Supranational	2.4
Government Owned – No Guarantee	2.3
Non-Agency Commercial Mortgage-Backed Securities	2.0
Other Investments, less than 2% each	25.7
Short-Term Investments	5.5
Total Investments	98.9
Other assets less liabilities (including forward foreign currency contracts)	1.1
Net Assets	100.0	%

See accompanying notes to financial statements.

|  34

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund

Principal Amount		Description	Value (†)
	Bonds and Notes — 96.2% of Net Assets
	Non-Convertible Bonds — 96.0%
		ABS Car Loan — 7.2%
$	89,000	AmeriCredit Automobile Receivables Trust, Series 2014-1, Class B, 1.680%, 7/08/2019	$	89,223
	147,000	AmeriCredit Automobile Receivables Trust, Series 2014-4, Class C, 2.470%, 11/09/2020		149,175
	375,000	AmeriCredit Automobile Receivables Trust, Series 2015-3, Class C, 2.730%, 3/08/2021		382,602
	152,000	AmeriCredit Automobile Receivables Trust, Series 2016-1, Class C, 2.890%, 1/10/2022		156,134
	72,000	AmeriCredit Automobile Receivables Trust, Series 2016-2, Class C, 2.870%, 11/08/2021		73,880
	160,000	AmeriCredit Automobile Receivables Trust, Series 2016-3, Class C, 2.240%, 4/08/2022		161,254
	210,000	Avis Budget Rental Car Funding AESOP LLC, Series 2014-1A, Class A, 2.460%, 7/20/2020, 144A		212,130
	360,000	Avis Budget Rental Car Funding AESOP LLC, Series 2016-1A, Class A, 2.990%, 6/20/2022, 144A		368,893
	57,648	California Republic Auto Receivables Trust, Series 2013-2, Class A2, 1.230%, 3/15/2019		57,694
	225,000	California Republic Auto Receivables Trust, Series 2016-2, Class A3, 1.560%, 7/15/2020		225,869
	52,327	Capital Auto Receivables Asset Trust, Series 2014-2, Class A3, 1.260%, 5/21/2018		52,354
	371,000	Capital Auto Receivables Asset Trust, Series 2015-1, Class A3, 1.610%, 6/20/2019		372,594
	2,232	CarFinance Capital Auto Trust, Series 2014-1A, Class A, 1.460%, 12/17/2018, 144A		2,232
	126,211	CarFinance Capital Auto Trust, Series 2014-2A, Class A, 1.440%, 11/16/2020, 144A		126,057
	20,517	CarMax Auto Owner Trust, Series 2013-4, Class A3, 0.800%, 7/16/2018		20,510
	33,295	CarMax Auto Owner Trust, Series 2014-1, Class A3, 0.790%, 10/15/2018		33,275
	9,312	CPS Auto Receivables Trust, Series 2013-D, Class A, 1.540%, 7/16/2018, 144A		9,316
	64,229	CPS Auto Receivables Trust, Series 2014-C, Class A, 1.310%, 2/15/2019, 144A		64,194
	465,000	CPS Auto Receivables Trust, Series 2015-A, Class B, 2.790%, 2/16/2021, 144A		471,525
	345,000	Credit Acceptance Auto Loan Trust, Series 2014-2A, Class A, 1.880%, 3/15/2022, 144A		345,665
	275,000	Credit Acceptance Auto Loan Trust, Series 2015-1A, Class B, 2.610%, 1/17/2023, 144A		276,577
	800,000	Credit Acceptance Auto Loan Trust, Series 2016-2A, Class B, 3.180%, 5/15/2024, 144A		813,407
	322,000	Drive Auto Receivables Trust, Series 2015-BA, Class C, 2.760%, 7/15/2021, 144A		324,686
	362,000	Drive Auto Receivables Trust, Series 2016-BA, Class C, 3.190%, 7/15/2022, 144A		368,442
	107,000	DT Auto Owner Trust, Series 2015-2A, Class D, 4.250%, 2/15/2022, 144A		108,976
	335,000	DT Auto Owner Trust, Series 2015-3A, Class D, 4.530%, 10/17/2022, 144A		342,943
	255,000	DT Auto Owner Trust, Series 2016-2A, Class D, 5.430%, 11/15/2022, 144A		267,670
	440,000	DT Auto Owner Trust, Series 2016-4A, Class C, 2.740%, 10/17/2022, 144A		439,742

See accompanying notes to financial statements.

35  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		ABS Car Loan — continued
$	76,020	Exeter Automobile Receivables Trust, Series 2014-1A, Class B, 2.420%, 1/15/2019, 144A	$	76,069
	8,457	Exeter Automobile Receivables Trust, Series 2014-3A, Class A, 1.320%, 1/15/2019, 144A		8,446
	36,982	First Investors Auto Owner Trust, Series 2013-3A, Class A3, 1.440%, 10/15/2019, 144A		36,989
	40,791	First Investors Auto Owner Trust, Series 2014-1A, Class A3, 1.490%, 1/15/2020, 144A		40,805
	290,000	Flagship Credit Auto Trust, Series 2015-2B, 3.080%, 12/15/2021, 144A		295,291
	195,000	Flagship Credit Auto Trust, Series 2016-2, Class B, 3.840%, 9/15/2022, 144A		203,321
	135,000	Flagship Credit Auto Trust, Series 2016-3, Class B, 2.430%, 6/15/2021, 144A		135,984
	115,000	Ford Credit Auto Owner Trust/Ford Credit, Series 2014-1, Class A, 2.260%, 11/15/2025, 144A		117,236
	230,000	Ford Credit Auto Owner Trust/Ford Credit, Series 2014-2, Class A, 2.310%, 4/15/2026, 144A		235,147
	705,000	Ford Credit Auto Owner Trust/Ford Credit, Series 2016-2, Class A, 2.030%, 12/15/2027, 144A		711,063
	590,000	GM Financial Automobile Leasing Trust, Series 2016-2, Class A3, 1.620%, 9/20/2019		593,089
	490,000	Hyundai Auto Lease Securitization Trust, Series 2016-C, Class A4, 1.650%, 7/15/2020, 144A		490,238
	595,000	NextGear Floorplan Master Owner Trust, Series 2014-1A, Class A, 1.920%, 10/15/2019, 144A		593,397
	299,000	Prestige Auto Receivables Trust, Series 2015-1, Class A3, 1.530%, 2/15/2021, 144A		299,461
	121,000	Santander Drive Auto Receivables Trust, Series 2015-4, Class C, 2.970%, 3/15/2021		123,221
	188,000	Santander Drive Auto Receivables Trust, Series 2016-2, Class C, 2.660%, 11/15/2021		190,939
	76,835	SMART Trust/Australia, Series 2013-1US, Class A4A, 1.050%, 10/14/2018		76,752
	138,514	SMART Trust/Australia, Series 2013-2US, Class A4A, 1.180%, 2/14/2019		137,987
	279,394	World Omni Auto Receivables Trust, Series 2014-B, Class A3, 1.140%, 1/15/2020		279,627
	640,000	World Omni Auto Receivables Trust, Series 2016-B, Class A3, 1.300%, 2/15/2022		640,376
				11,602,457
		ABS Credit Card — 2.0%
	434,000	Bank of America Credit Card Trust, Series 2015-A2, Class A, 1.360%, 9/15/2020		435,759
	415,000	Barclays Dryrock Issuance Trust, Series 2014-3, Class A, 2.410%, 7/15/2022		427,595
	1,085,000	Chase Issuance Trust, Series 2016-A4, Class A4, 1.490%, 7/15/2022		1,088,616
	260,000	Citibank Credit Card Issuance Trust, Series 2014-A1, Class A1, 2.880%, 1/23/2023		275,314
	470,000	Synchrony Credit Card Master Note Trust, Series 2016-3, Class A, 1.580%, 9/15/2022		470,926
	501,000	World Financial Network Credit Card Master Trust, Series 2012-A, Class A, 3.140%, 1/17/2023		521,370
				3,219,580

See accompanying notes to financial statements.

|  36

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		ABS Home Equity — 1.2%
$	329,364	Colony American Finance Ltd., Series 2015-1, Class A, 2.896%, 10/15/2047, 144A	$	333,422
	221,076	Colony American Homes, Series 2014-1A, Class A, 1.681%, 5/17/2031, 144A(b)		221,183
	26,074	Countrywide Alternative Loan Trust, Series 2006-J5, Class 4A1, 4.633%, 7/25/2021(b)(c)		23,756
	17,729	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 5.115%, 2/25/2035(b)		17,988
	500,000	Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2015-DNA1, Class M2, 2.375%, 10/25/2027(b)		508,624
	226,427	Mill City Mortgage Trust, Series 2016-1, Class A1, 2.500%, 4/25/2057, 144A(b)		227,694
	20,473	RBSSP Resecuritization Trust, Series 2010-3, Class 9A1, 5.500%, 2/26/2035, 144A		20,635
	199,135	Towd Point Mortgage Trust, Series 2015-2, Class 1AE2, 2.750%, 11/25/2060, 144A(b)		201,594
	319,992	Towd Point Mortgage Trust, Series 2016-2, Class A1A, 2.750%, 8/25/2055, 144A(b)		324,238
	90,628	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR10, Class 2A4, 2.956%, 5/01/2035(b)		93,799
				1,972,933
		ABS Other — 1.5%
	39,271	CCG Receivables Trust, Series 2014-1, Class A2, 1.060%, 11/15/2021, 144A		39,233
	132,975	DB Master Finance LLC, Series 2015-1A, Class A2I, 3.262%, 2/20/2045, 144A		133,666
	42,646	FRS I LLC, Series 2013-1A, Class A1, 1.800%, 4/15/2043, 144A		41,822
	37,958	Global Container Assets Ltd., Series 2013-1A, Class A1, 2.200%, 11/05/2028, 144A		37,886
	398,000	John Deere Owner Trust, Series 2014-B, Class A4, 1.500%, 6/15/2021		399,802
	190,263	OneMain Financial Issuance Trust, Series 2014-2A, Class A, 2.470%, 9/18/2024, 144A		190,686
	385,000	OneMain Financial Issuance Trust, Series 2015-1A, Class A, 3.190%, 3/18/2026, 144A		388,922
	350,000	OneMain Financial Issuance Trust, Series 2016-1A, Class A, 3.660%, 2/20/2029, 144A		358,906
	245,779	Shenton Aircraft Investment I Ltd., Series 2015-1A, Class A, 4.750%, 10/15/2042, 144A		239,344
	102,478	Springleaf Funding Trust, Series 2014-AA, Class A, 2.410%, 12/15/2022, 144A		102,609
	203,958	TAL Advantage V LLC, Series 2014-1A, Class A, 3.510%, 2/22/2039, 144A		200,604
	85,015	TAL Advantage V LLC, Series 2014-2A, Class A2, 3.330%, 5/20/2039, 144A		83,285
	204,167	TAL Advantage V LLC, Series 2014-3A, Class A, 3.270%, 11/21/2039, 144A		198,982
				2,415,747
		ABS Student Loan — 1.1%
	425,726	North Carolina State Education Assistance Authority, Series 2011-2, Class A2, 1.515%, 7/25/2025(b)		423,065
	165,734	SoFi Professional Loan Program LLC, Series 2015-A, Class A2, 2.420%, 3/25/2030, 144A		167,789
	528,194	SoFi Professional Loan Program LLC, Series 2015-C, Class A2, 2.510%, 8/25/2033, 144A		537,415
	295,000	SoFi Professional Loan Program LLC, Series 2016-B, Class A2B, 2.740%, 10/25/2032, 144A		302,447
	386,359	South Carolina Student Loan Corp., Series 2010-1, Class A2, 1.715%, 7/25/2025(b)		387,974
				1,818,690

See accompanying notes to financial statements.

37  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		Aerospace & Defense — 0.3%
$	54,000	Rockwell Collins, Inc., 1.200%, 12/15/2016(b)	$	54,035
	450,000	Rolls-Royce PLC, 2.375%, 10/14/2020, 144A		457,754
				511,789
		Agency Commercial Mortgage-Backed Securities — 4.5%
	648,018	FHLMC Multifamily Structured Pass Through Certificates, Series K013, Class A2, 3.974%, 1/25/2021		710,644
	509,476	FHLMC Multifamily Structured Pass Through Certificates, Series K029, Class A2, 3.320%, 2/25/2023(b)		556,115
	701,647	FHLMC Multifamily Structured Pass Through Certificates, Series K042, Class A2, 2.670%, 12/25/2024		737,552
	371,879	FHLMC Multifamily Structured Pass Through Certificates, Series K704, Class A2, 2.412%, 8/25/2018		378,797
	923,523	FHLMC Multifamily Structured Pass Through Certificates, Series K708, Class A2, 2.130%, 1/25/2019		939,171
	321,775	FHLMC Multifamily Structured Pass Through Certificates, Series K709, Class A2, 2.086%, 3/25/2019		327,282
	1,304,975	FHLMC Multifamily Structured Pass Through Certificates, Series K710, Class A2, 1.883%, 5/25/2019		1,323,249
	1,014,484	FHLMC Multifamily Structured Pass Through Certificates, Series K711, Class A2, 1.730%, 7/25/2019		1,025,536
	625,673	FHLMC Multifamily Structured Pass Through Certificates, Series KLH2, Class A, 1.225%, 11/25/2022(b)		626,457
	603,327	FHLMC Multifamily Structured Pass Through Certificates, Series KP03, Class A2, 1.780%, 7/25/2019		608,881
				7,233,684
		Airlines — 0.6%
	485,000	American Airlines Pass Through Trust, Series 2016-3, Class A, 3.250%, 4/15/2030		487,488
	74,239	Delta Air Lines Pass Through Trust, Series 2009-1, Class A, 7.750%, 6/17/2021		83,919
	371,435	Latam Airlines Pass Through Trust, Series 2015-1, Class A, 4.200%, 8/15/2029		363,078
				934,485
		Automotive — 1.9%
	500,000	American Honda Finance Corp., MTN, 1.200%, 7/12/2019		497,071
	447,000	American Honda Finance Corp., MTN, 1.600%, 7/13/2018		450,681
	585,000	BMW U.S. Capital LLC, 1.850%, 9/15/2021, 144A		583,332
	220,000	Daimler Finance North America LLC, 2.450%, 5/18/2020, 144A		224,644
	45,000	Delphi Automotive PLC, 3.150%, 11/19/2020		46,594
	360,000	Ford Motor Credit Co. LLC, 2.459%, 3/27/2020		363,359
	326,000	General Motors Financial Co., Inc., 3.450%, 4/10/2022		330,664
	331,000	General Motors Financial Co., Inc., 4.250%, 5/15/2023		343,785
	103,000	Magna International, Inc., 3.625%, 6/15/2024		108,271
	150,000	PACCAR Financial Corp., MTN, 1.200%, 8/12/2019		149,559
				3,097,960

See accompanying notes to financial statements.

|  38

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		Banking — 15.1%
$	530,000	ABN AMRO Bank NV, 1.800%, 9/20/2019, 144A	$	530,456
	105,000	Bank of America Corp., 6.000%, 9/01/2017		109,182
	365,000	Bank of Montreal, MTN, 1.500%, 7/18/2019		364,228
	700,000	Bank of Montreal, MTN, 1.900%, 8/27/2021		696,344
	49,000	Bank of Montreal, MTN, 1.400%, 9/11/2017		49,030
	415,000	Bank of New York Mellon Corp. (The), MTN, 2.450%, 8/17/2026		412,461
	845,000	Bank of Nova Scotia, 1.650%, 6/14/2019		846,494
	505,000	Barclays PLC, 3.200%, 8/10/2021		507,655
	295,000	Bear Stearns Cos. LLC (The), 7.250%, 2/01/2018		316,801
	490,000	BNZ International Funding Ltd., 2.100%, 9/14/2021, 144A		487,781
	750,000	Canadian Imperial Bank of Commerce, 1.600%, 9/06/2019		750,005
	520,000	Capital One NA, 2.250%, 9/13/2021		519,803
	220,000	Citigroup, Inc., 4.450%, 9/29/2027		230,224
	430,000	Citizens Bank NA, Series BKNT, 2.500%, 3/14/2019		436,988
	250,000	Comerica Bank, 2.500%, 6/02/2020		255,307
	745,000	Commonwealth Bank of Australia, 2.000%, 9/06/2021, 144A		743,976
	485,000	Cooperatieve Rabobank UA, 4.625%, 12/01/2023		523,754
	450,000	Credit Suisse Group Funding Guernsey Ltd., 3.800%, 6/09/2023, 144A		455,976
	525,000	Danske Bank AS, 2.000%, 9/08/2021, 144A		524,652
	693,000	Deutsche Bank AG, GMTN, 3.375%, 5/12/2021		677,893
	780,000	Fifth Third Bank, Series BKNT, 1.625%, 9/27/2019		779,556
	215,000	Goldman Sachs Group, Inc. (The), 2.750%, 9/15/2020		220,230
	259,000	Goldman Sachs Group, Inc. (The), 5.950%, 1/18/2018		273,254
	185,000	HSBC USA, Inc., 2.375%, 11/13/2019		187,273
	430,000	ING Bank NV, 2.050%, 8/15/2021, 144A		430,476
	246,000	JPMorgan Chase & Co., 6.000%, 1/15/2018		259,903
	585,000	JPMorgan Chase Bank NA, 1.650%, 9/23/2019		586,845
	555,000	Key Bank NA, Series BKNT, 1.600%, 8/22/2019		555,047
	445,000	Lloyds Bank PLC, 1.750%, 3/16/2018		445,255
	532,000	Macquarie Bank Ltd., 1.600%, 10/27/2017, 144A		532,810
	116,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		125,148
	219,000	Merrill Lynch & Co., Inc., Series C, GMTN, 6.400%, 8/28/2017		228,489
	460,000	Mizuho Bank Ltd., 1.800%, 3/26/2018, 144A		460,948
	535,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018		573,242
	295,000	National Bank of Canada, 2.100%, 12/14/2018		298,749
	540,000	Nordea Bank AB, 1.625%, 9/30/2019, 144A		539,152
	317,000	Royal Bank of Canada, 1.400%, 10/13/2017		317,168
	652,000	Royal Bank of Canada, GMTN, 1.625%, 4/15/2019		653,470
	305,000	Santander Bank NA, 2.000%, 1/12/2018		305,038
	604,000	Santander Holdings USA, Inc., 2.700%, 5/24/2019		611,542
	365,000	Santander UK Group Holdings PLC, 4.750%, 9/15/2025, 144A		365,410
	380,000	Santander UK PLC, 2.500%, 3/14/2019		385,666
	675,000	Skandinaviska Enskilda Banken AB, 1.875%, 9/13/2021		669,634
	815,000	Societe Generale S.A., 5.000%, 1/17/2024, 144A		850,982
	370,000	Standard Chartered PLC, 4.050%, 4/12/2026, 144A		381,522
	875,000	Sumitomo Mitsui Financial Group, Inc., 2.058%, 7/14/2021		867,867
	525,000	Svenska Handelsbanken AB, Series BKNT, 1.500%, 9/06/2019		523,283

See accompanying notes to financial statements.

39  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		Banking — continued
$	335,000	Svenska Handelsbanken AB, Series BKNT, 1.875%, 9/07/2021	$	333,176
	740,000	Toronto-Dominion Bank (The), GMTN, 1.450%, 9/06/2018		741,297
	620,000	UBS Group Funding Jersey Ltd., 2.650%, 2/01/2022, 144A		618,846
	770,000	Wells Fargo Bank NA, 1.750%, 5/24/2019		773,464
	60,000	Westpac Banking Corp., 2.000%, 8/19/2021		59,903
				24,393,655
		Brokerage — 0.3%
	390,000	Ameriprise Financial, Inc., 2.875%, 9/15/2026		390,919
	75,000	Brookfield Finance, Inc., 4.250%, 6/02/2026		77,461
				468,380
		Building Materials — 0.1%
	107,000	Fortune Brands Home & Security, Inc., 3.000%, 6/15/2020		110,182
	40,000	Masco Corp., 3.500%, 4/01/2021		41,400
	27,000	Masco Corp., 7.125%, 3/15/2020		31,050
				182,632
		Cable Satellite — 0.1%
	170,000	Cox Enterprises, Inc., 7.375%, 7/15/2027, 144A		208,674
		Chemicals — 0.8%
	535,000	Air Liquide Finance S.A., 2.500%, 9/27/2026, 144A		537,033
	107,000	Airgas, Inc., 3.050%, 8/01/2020		111,042
	107,000	Albemarle Corp., 3.000%, 12/01/2019		110,394
	125,000	Eastman Chemical Co., 4.500%, 1/15/2021		136,319
	45,000	Methanex Corp., 3.250%, 12/15/2019		44,492
	360,000	Westlake Chemical Corp., 3.600%, 8/15/2026, 144A		361,021
				1,300,301
		Collateralized Mortgage Obligations — 1.8%
	230,741	Government National Mortgage Association, Series 2014-H14, Class FA, 0.994%, 7/20/2064(b)		229,406
	162,632	Government National Mortgage Association, Series 2014-H15, Class FA, 0.994%, 7/20/2064(b)		161,583
	629,014	Government National Mortgage Association, Series 2015-H10, Class JA, 2.250%, 4/20/2065		629,580
	642,084	Government National Mortgage Association, Series 2016-H06, Class FC, 1.414%, 2/20/2066(b)		646,735
	1,313,210	Government National Mortgage Association, Series 2016-H10, Class FJ, 1.123%, 4/20/2066(b)		1,312,741
				2,980,045
		Construction Machinery — 0.8%
	835,000	Caterpillar Financial Services Corp., 1.700%, 8/09/2021		828,485
	174,000	John Deere Capital Corp., 2.450%, 9/11/2020		179,247
	220,000	John Deere Capital Corp., MTN, 1.250%, 10/09/2019		218,560
				1,226,292

See accompanying notes to financial statements.

|  40

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		Consumer Cyclical Services — 0.3%
$	225,000	Alibaba Group Holding Ltd., 2.500%, 11/28/2019	$	229,513
	67,000	Western Union Co. (The), 3.350%, 5/22/2019		68,647
	116,000	Western Union Co. (The), 3.650%, 8/22/2018		119,627
				417,787
		Diversified Manufacturing — 0.7%
	430,000	3M Co., 2.250%, 9/19/2026		429,435
	650,000	Siemens Financieringsmaatschappij NV, 1.700%, 9/15/2021, 144A		645,065
	80,000	Snap-On, Inc., 4.250%, 1/15/2018		83,016
				1,157,516
		Electric — 2.4%
	197,000	Delmarva Power & Light Co., 3.500%, 11/15/2023		213,137
	385,000	DTE Energy Co., 2.850%, 10/01/2026		383,476
	510,000	Duke Energy Corp., 2.650%, 9/01/2026		500,446
	130,000	Duke Energy Progress LLC, 1.035%, 3/06/2017(b)		130,082
	280,000	Entergy Louisiana LLC, 3.050%, 6/01/2031		287,483
	451,000	Exelon Corp., 2.450%, 4/15/2021		460,005
	179,000	Exelon Generation Co. LLC, 2.950%, 1/15/2020		184,493
	116,000	Exelon Generation Co. LLC, 4.250%, 6/15/2022		124,492
	395,000	Fortis, Inc., 2.100%, 10/04/2021, 144A		393,554
	188,000	National Rural Utilities Cooperative Finance Corp., (fixed rate to 4/30/2023, variable rate thereafter), 4.750%, 4/30/2043		190,880
	280,000	NextEra Energy Capital Holdings, Inc., 1.649%, 9/01/2018		281,106
	456,000	NextEra Energy Capital Holdings, Inc., Series F, 2.056%, 9/01/2017		458,474
	273,000	Southern Co. (The), 2.750%, 6/15/2020		281,593
				3,889,221
		Finance Companies — 0.5%
	617,000	Ares Capital Corp., 3.625%, 1/19/2022		621,019
	228,000	FS Investment Corp., 4.750%, 5/15/2022		234,244
				855,263
		Food & Beverage — 0.4%
	9,000	Anheuser-Busch Cos. LLC, 5.000%, 3/01/2019		9,753
	158,000	Coca-Cola Co. (The), 3.300%, 9/01/2021		170,434
	340,000	Flowers Foods, Inc., 3.500%, 10/01/2026		339,263
	175,000	Hershey Co. (The), 2.300%, 8/15/2026		173,375
				692,825
		Government Owned – No Guarantee — 1.2%
	397,000	Ecopetrol S.A., 5.875%, 9/18/2023		428,264
	775,000	Petroleos Mexicanos, 4.625%, 9/21/2023, 144A		776,085
	780,000	Sinopec Group Overseas Development 2016 Ltd., 1.750%, 9/29/2019, 144A		774,789
				1,979,138
		Health Insurance — 0.4%
	695,000	Aetna, Inc., 1.700%, 6/07/2018		697,214

See accompanying notes to financial statements.

41  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		Healthcare — 0.6%
$	41,000	Agilent Technologies, Inc., 6.500%, 11/01/2017	$	43,175
	245,000	Express Scripts Holding Co., 3.000%, 7/15/2023		248,845
	183,000	Life Technologies Corp., 6.000%, 3/01/2020		204,634
	36,000	Quest Diagnostics, Inc., 4.700%, 4/01/2021		39,890
	94,000	Quest Diagnostics, Inc., 4.750%, 1/30/2020		102,271
	385,000	Thermo Fisher Scientific, Inc., 2.950%, 9/19/2026		382,083
				1,020,898
		Hybrid ARMs — 0.2%
	64,056	FHLMC, 2.691%, 1/01/2035(b)		67,772
	188,352	FHLMC, 2.946%, 5/01/2036(b)		200,627
				268,399
		Independent Energy — 0.4%
	14,000	Anadarko Petroleum Corp., 6.375%, 9/15/2017		14,596
	107,000	ConocoPhillips Co., 2.875%, 11/15/2021		109,931
	156,000	Devon Energy Corp., 5.850%, 12/15/2025		175,559
	179,000	Encana Corp., 6.500%, 5/15/2019		193,300
	103,000	Newfield Exploration Co., 5.750%, 1/30/2022		106,347
				599,733
		Industrial Other — 0.4%
	245,000	CK Hutchison International 16 Ltd., 2.750%, 10/03/2026, 144A		241,250
	440,000	Hutchison Whampoa International 14 Ltd., 1.625%, 10/31/2017, 144A		440,301
				681,551
		Integrated Energy — 0.7%
	540,000	BP Capital Markets PLC, 2.112%, 9/16/2021		543,138
	340,000	BP Capital Markets PLC, 2.750%, 5/10/2023		345,681
	143,000	BP Capital Markets PLC, 3.062%, 3/17/2022		149,794
	94,000	Shell International Finance BV, 1.625%, 11/10/2018		94,272
				1,132,885
		Life Insurance — 1.1%
	165,000	AIG Global Funding, 1.650%, 12/15/2017, 144A		165,677
	402,000	Jackson National Life Global Funding, 3.050%, 4/29/2026, 144A		408,607
	371,000	New York Life Global Funding, 1.450%, 12/15/2017, 144A		372,562
	286,000	Prudential Financial, Inc., 3.500%, 5/15/2024		299,100
	344,000	Reliance Standard Life Global Funding II, 2.150%, 10/15/2018, 144A		346,985
	63,000	Unum Group, 5.625%, 9/15/2020		70,334
	140,000	Voya Financial, Inc., 3.650%, 6/15/2026		139,371
				1,802,636
		Media Entertainment — 0.6%
	95,000	Activision Blizzard, Inc., 2.300%, 9/15/2021, 144A		95,248
	112,000	S&P Global, Inc, 3.300%, 8/14/2020		117,570
	290,000	S&P Global, Inc., 2.950%, 1/22/2027, 144A		291,543
	49,000	Scripps Networks Interactive, Inc., 3.950%, 6/15/2025		51,406
	395,000	Viacom, Inc., 3.450%, 10/04/2026		394,886
				950,653

See accompanying notes to financial statements.

|  42

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		Metals & Mining — 0.5%
$	125,000	Alcoa, Inc., 6.750%, 7/15/2018	$	134,687
	164,000	Barrick North America Finance LLC, 4.400%, 5/30/2021		179,647
	273,000	Glencore Funding LLC, 2.125%, 4/16/2018, 144A		270,739
	31,000	Reliance Steel & Aluminum Co., 4.500%, 4/15/2023		32,401
	169,000	Rio Tinto Finance USA PLC, 3.500%, 3/22/2022		182,355
				799,829
		Midstream — 1.0%
	116,000	DCP Midstream Operating LP, 4.950%, 4/01/2022		118,175
	255,000	Energy Transfer Partners LP, 2.500%, 6/15/2018		256,668
	125,000	Energy Transfer Partners LP, 4.650%, 6/01/2021		132,778
	246,000	Kinder Morgan Energy Partners LP, 4.150%, 3/01/2022		258,157
	255,000	Kinder Morgan, Inc., 5.625%, 11/15/2023, 144A		281,147
	117,000	National Fuel Gas Co., 5.200%, 7/15/2025		126,480
	125,000	Plains All American Pipeline LP/PAA Finance Corp., 3.650%, 6/01/2022		126,710
	160,000	Plains All American Pipeline LP/PAA Finance Corp., 3.850%, 10/15/2023		159,152
	45,000	TransCanada PipeLines Ltd., 2.500%, 8/01/2022		45,133
	143,000	Williams Partners LP, 3.600%, 3/15/2022		145,484
				1,649,884
		Mortgage Related — 3.3%
	5,641	FHLMC, 3.000%, 10/01/2026		5,927
	609	FHLMC, 6.500%, 1/01/2024		698
	100	FHLMC, 8.000%, 7/01/2025		114
	217	FNMA, 6.000%, 9/01/2021		223
	247,745	GNMA, 4.285%, 2/20/2063		267,293
	467,595	GNMA, 4.329%, 2/20/2063		501,264
	198,923	GNMA, 4.483%, 10/20/2062		213,438
	438,458	GNMA, 4.501%, 4/20/2063		471,948
	253,140	GNMA, 4.508%, 4/20/2063		272,490
	279,285	GNMA, 4.511%, 5/20/2062		296,033
	218,574	GNMA, 4.514%, 5/20/2062		231,354
	245,131	GNMA, 4.560%, 3/20/2063		263,939
	233,734	GNMA, 4.561%, 3/20/2062		247,357
	282,036	GNMA, 4.571%, 2/20/2063		301,911
	161,377	GNMA, 4.586%, 7/20/2062		171,998
	204,897	GNMA, 4.595%, 6/20/2062		216,863
	423,371	GNMA, 4.624%, 11/20/2064		450,261
	233,197	GNMA, 4.683%, 8/20/2061		242,382
	581,300	GNMA, 4.687%, 5/20/2064		657,457
	1,969	GNMA, 6.500%, 12/15/2023		2,270
	306	GNMA, 8.500%, 9/15/2022		311
	840	GNMA, 9.500%, 1/15/2019		892
	489,227	Government National Mortgage Association, Series 2015-H09, Class HA, 1.750%, 3/20/2065		489,673
				5,306,096

See accompanying notes to financial statements.

43  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		Natural Gas — 0.1%
$	107,000	NiSource Finance Corp., 6.125%, 3/01/2022	$	127,673
		Non-Agency Commercial Mortgage-Backed Securities — 9.2%
	33,483	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2007-5, Class A4, 5.492%, 2/10/2051		34,258
	491,600	CFCRE Commercial Mortgage Trust, Series 2016-C3, Class A3, 3.865%, 1/10/2048		540,907
	361,996	CFCRE Commercial Mortgage Trust, Series 2016-C4, Class A4, 3.283%, 5/10/2058		380,316
	992,138	Citigroup Commercial Mortgage Trust, Series 2016-GC37, Class A4, 3.314%, 4/10/2049		1,053,170
	295,000	Citigroup Commercial Mortgage Trust, Series 2016-P4, Class A2, 2.450%, 7/10/2049		302,467
	435,000	Commercial Mortgage Pass Through Certificates, Series 2012-LTRT, Class A2, 3.400%, 10/05/2030, 144A		452,372
	263,676	Commercial Mortgage Pass Through Certificates, Series 2013-CR8, Class A5, 3.612%, 6/10/2046(b)		285,927
	84,913	Commercial Mortgage Pass Through Certificates, Series 2014-CR14, Class A2, 3.147%, 2/10/2047		87,023
	232,393	Commercial Mortgage Pass Through Certificates, Series 2014-CR15, Class A2, 2.928%, 2/10/2047		239,043
	205,578	Commercial Mortgage Pass Through Certificates, Series 2014-CR16, Class ASB, 3.653%, 4/10/2047		221,197
	478,193	Commercial Mortgage Pass Through Certificates, Series 2014-LC17, Class A3, 3.723%, 10/10/2047		508,868
	730,000	Commercial Mortgage Pass Through Certificates, Series 2014-TWC, Class A, 1.377%, 2/13/2032, 144A(b)		728,342
	804,436	Commercial Mortgage Pass Through Certificates, Series 2016-DC2, Class A5, 3.765%, 2/10/2049		881,432
	226,424	Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4, 5.881%, 6/15/2039(b)		228,786
	153,683	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 6.134%, 9/15/2039(b)		157,174
	308,963	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040(b)		316,050
	84,913	CSAIL Commercial Mortgage Trust, Series 2015-C4, Class ASB, 3.617%, 11/15/2048		91,358
	222,006	GP Portfolio Trust, Series 2014-GPP, Class A, 1.474%, 2/15/2027, 144A(b)		221,651
	228,914	Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4, 5.736%, 12/10/2049		234,962
	203,942	Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/2039		204,242
	340,000	GS Mortgage Securities Corp. Trust, Series 2013-PEMB, Class A, 3.668%, 3/05/2033, 144A(b)		354,829
	875,844	GS Mortgage Securities Trust, Series 2007-GG10, Class A4, 5.988%, 8/10/2045(b)		889,058
	236,862	GS Mortgage Securities Trust, Series 2014-GC20, Class A3, 3.680%, 4/10/2047		251,695

See accompanying notes to financial statements.

|  44

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		Non-Agency Commercial Mortgage-Backed Securities — continued
$	344,622	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LD11, Class A4, 5.940%, 6/15/2049(b)	$	349,364
	88,049	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class A3, 5.420%, 1/15/2049		88,705
	120,665	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2014-C19, Class ASB, 3.584%, 4/15/2047		129,835
	313,755	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2014-FL5, Class A, 1.504%, 7/15/2031, 144A(b)		313,618
	520,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2015-SGP, Class A, 2.224%, 7/15/2036, 144A(b)		522,930
	276,271	Merrill Lynch Mortgage Trust, Series 2007-C1, Class A4, 6.008%, 6/12/2050(b)		280,992
	389,059	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-5, Class A4, 5.378%, 8/12/2048		390,944
	211,835	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051(b)		213,962
	263,676	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A3, 3.669%, 2/15/2047		280,965
	129,604	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C22, Class A4, 3.306%, 4/15/2048		138,137
	701,647	Morgan Stanley Capital I Trust, Series 2007-IQ14, Class A4, 5.692%, 4/15/2049(b)		709,284
	185,000	SCG Trust, Series 2013-SRP1, Class B, 3.024%, 11/15/2026, 144A(b)		178,739
	505,000	UBS-Barclays Commercial Mortgage Trust, Series 2012-TFT, Class A, 2.892%, 6/05/2030, 144A		510,114
	366,465	Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A3, 5.889%, 6/15/2049(b)		372,496
	376,025	Wachovia Bank Commercial Mortgage Trust, Series 2007-C34, Class A3, 5.678%, 5/15/2046		382,886
	201,109	Wells Fargo Commercial Mortgage Trust, Series 2016-C33, Class A4, 3.426%, 3/15/2059		214,942
	290,000	Wells Fargo Commercial Mortgage Trust, Series 2016-C35, Class A2, 2.495%, 7/15/2048		298,781
	224,134	WFCG Commercial Mortgage Trust, Series 2015-BXRP, Class A, 1.646%, 11/15/2029, 144A(b)		221,092
	178,764	WFRBS Commercial Mortgage Trust, Series 2004-C19, Class A3, 3.660%, 3/15/2047		189,807
	348,589	WFRBS Commercial Mortgage Trust, Series 2014-C20, Class ABS, 3.638%, 5/15/2047		375,868
				14,828,588
		Oil Field Services — 0.2%
	65,000	Nabors Industries, Inc., 4.625%, 9/15/2021		61,254
	143,000	Oceaneering International, Inc., 4.650%, 11/15/2024		144,101
	89,000	Rowan Cos., Inc., 5.000%, 9/01/2017		89,556
	54,000	Schlumberger Holdings Corp., 3.625%, 12/21/2022, 144A		57,886
				352,797

See accompanying notes to financial statements.

45  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		Pharmaceuticals — 0.9%
$	22,000	Amgen, Inc., 2.200%, 5/22/2019	$	22,409
	147,000	Eli Lilly & Co., 1.950%, 3/15/2019		149,541
	215,000	Gilead Sciences, Inc., 2.500%, 9/01/2023		217,279
	259,000	Mylan, Inc., 4.200%, 11/29/2023		271,034
	775,000	Shire Acquisitions Investments Ireland Designated Activity Co., 1.900%, 9/23/2019		774,602
				1,434,865
		Property & Casualty Insurance — 0.4%
	245,000	Berkshire Hathaway Finance Corp., 1.300%, 8/15/2019		245,414
	355,000	Old Republic International Corp., 3.875%, 8/26/2026		354,376
				599,790
		Railroads — 0.5%
	255,000	Canadian National Railway Co., 1.450%, 12/15/2016		255,152
	206,000	CSX Corp., 3.700%, 10/30/2020		220,169
	27,000	CSX Corp., 6.150%, 5/01/2037		35,162
	215,000	Union Pacific Corp., 3.646%, 2/15/2024		234,845
				745,328
		REITs – Health Care — 0.6%
	478,000	HCP, Inc., 4.000%, 12/01/2022		505,141
	31,000	Healthcare Realty Trust, Inc., 3.750%, 4/15/2023		31,791
	385,000	Ventas Realty LP, 3.250%, 10/15/2026		388,598
				925,530
		REITs – Single Tenant — 0.1%
	179,000	Realty Income Corp., 5.875%, 3/15/2035		220,212
		Retailers — 0.8%
	335,000	El Puerto de Liverpool SAB de CV, 3.875%, 10/06/2026, 144A		330,645
	220,000	Home Depot, Inc. (The), 2.125%, 9/15/2026		216,148
	143,000	Ross Stores, Inc., 3.375%, 9/15/2024		152,041
	380,000	TJX Cos., Inc. (The), 2.250%, 9/15/2026		373,797
	180,000	Walgreens Boots Alliance, Inc., 2.600%, 6/01/2021		184,206
				1,256,837
		Sovereigns — 0.3%
	455,000	Republic of Turkey, 5.625%, 3/30/2021		484,575
		Supermarkets — 0.3%
	545,000	Kroger Co. (The), 2.650%, 10/15/2026		540,930
		Technology — 1.4%
	49,000	Apple, Inc., 2.700%, 5/13/2022		51,203
	139,000	Apple, Inc., 2.850%, 2/23/2023		146,327
	170,000	Diamond 1 Finance Corp./Diamond 2 Finance Corp., 6.020%, 6/15/2026, 144A		186,372
	114,000	Hewlett Packard Enterprise Co., 4.400%, 10/15/2022, 144A		121,559
	120,000	Hewlett Packard Enterprise Co., 4.900%, 10/15/2025, 144A		128,077
	246,000	HP, Inc., 4.300%, 6/01/2021		266,065
	72,000	Ingram Micro, Inc., 4.950%, 12/15/2024		72,862
	280,000	Intel Corp., 2.600%, 5/19/2026		285,248

See accompanying notes to financial statements.

|  46

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
		Technology — continued
$	89,000	Jabil Circuit, Inc., 5.625%, 12/15/2020	$	96,120
	22,000	Jabil Circuit, Inc., 8.250%, 3/15/2018		23,951
	36,000	KLA-Tencor Corp., 4.125%, 11/01/2021		38,746
	770,000	Pitney Bowes, Inc., 3.375%, 10/01/2021		769,630
	67,000	Xerox Corp., 2.800%, 5/15/2020		66,620
	89,000	Xerox Corp., 6.350%, 5/15/2018		94,513
				2,347,293
		Tobacco — 0.0%
	31,000	Philip Morris International, Inc., 2.900%, 11/15/2021		32,535
	5,000	Philip Morris International, Inc., 5.650%, 5/16/2018		5,347
				37,882
		Transportation Services — 0.3%
	430,000	TTX Co., 2.600%, 6/15/2020, 144A		438,406
		Treasuries — 26.1%
	385,000	U.S. Treasury Note, 0.750%, 7/15/2019		383,752
	775,000	U.S. Treasury Note, 0.750%, 8/15/2019		772,305
	1,585,000	U.S. Treasury Note, 0.875%, 9/15/2019		1,584,938
	2,350,900	U.S. Treasury Note, 1.125%, 2/28/2021		2,352,369
	3,735,000	U.S. Treasury Note, 1.125%, 7/31/2021		3,729,603
	4,730,000	U.S. Treasury Note, 1.125%, 8/31/2021		4,725,194
	661,400	U.S. Treasury Note, 1.250%, 3/31/2021		664,862
	5,966,200	U.S. Treasury Note, 1.375%, 1/31/2021		6,031,458
	1,395,000	U.S. Treasury Note, 1.375%, 5/31/2021		1,410,094
	1,790,000	U.S. Treasury Note, 1.375%, 6/30/2023		1,786,853
	5,191,000	U.S. Treasury Note, 1.500%, 8/15/2026		5,140,507
	3,771,900	U.S. Treasury Note, 1.625%, 6/30/2020		3,854,116
	925,000	U.S. Treasury Note, 1.625%, 5/15/2026		926,229
	782,100	U.S. Treasury Note, 1.750%, 4/30/2022		802,019
	3,003,200	U.S. Treasury Note, 1.750%, 1/31/2023		3,074,175
	2,319,500	U.S. Treasury Note, 1.875%, 8/31/2022		2,393,525
	1,805,500	U.S. Treasury Note, 1.875%, 10/31/2022		1,862,698
	728,500	U.S. Treasury Note, 2.000%, 11/15/2021		756,900
				42,251,597
		Wireless — 0.3%
	385,000	Crown Castle International Corp., 4.875%, 4/15/2022		429,467
		Wirelines — 0.5%
	429,000	AT&T, Inc., 3.600%, 2/17/2023		452,206
	400,000	Deutsche Telekom International Finance BV, 1.500%, 9/19/2019, 144A		399,856
				852,062
		Total Non-Convertible Bonds (Identified Cost $154,018,415)		155,342,664

See accompanying notes to financial statements.

47  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Principal Amount		Description	Value (†)
	Municipals — 0.2%
		New Jersey — 0.2%
$	275,000	New Jersey Economic Development Authority Revenue, School Facilities Construction, Refunding, Series QQ, 1.802%, 6/15/2017 (Identified Cost $275,000)	$	276,326
		Total Bonds and Notes (Identified Cost $154,293,415)		155,618,990
	Short-Term Investments — 3.7%
	6,065,192	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $6,065,207 on 10/03/2016 collateralized by $5,005,000 U.S. Treasury Note, 2.500% due 8/15/2023 valued at $5,399,144; $795,000 U.S. Treasury Note, 0.750% due 9/30/2018 valued at $795,000 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $6,065,192)		6,065,192
		Total Investments — 99.9% (Identified Cost $160,358,607)(a)		161,684,182
		Other assets less liabilities — 0.1%		129,342
		Net Assets — 100.0%	$	161,813,524
	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2016, the net unrealized appreciation on investments based on a cost of $160,672,016 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	$	1,769,978
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(757,812	)
		Net unrealized appreciation	$	1,012,166
	(b)	Variable rate security. Rate as of September 30, 2016 is disclosed.
	(c)	Fair valued by the Fund’s adviser. At September 30, 2016, the value of this security amounted to $23,756 or less than 0.1% of net assets.
	144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2016, the value of Rule 144A holdings amounted to $32,103,749 or 19.8% of net assets.
	ABS	Asset-Backed Securities
	ARMs	Adjustable Rate Mortgages
	FHLMC	Federal Home Loan Mortgage Corp.
	FNMA	Federal National Mortgage Association
	GMTN	Global Medium Term Note
	GNMA	Government National Mortgage Association
	MTN	Medium Term Note
	REITs	Real Estate Investment Trusts

See accompanying notes to financial statements.

|  48

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Intermediate Duration Bond Fund – (continued)

Industry Summary at September 30, 2016

Treasuries	26.1	%
Banking	15.1
Non-Agency Commercial Mortgage-Backed Securities	9.2
ABS Car Loan	7.2
Agency Commercial Mortgage-Backed Securities	4.5
Mortgage Related	3.3
Electric	2.4
ABS Credit Card	2.0
Other Investments, less than 2% each	26.4
Short-Term Investments	3.7
Total Investments	99.9
Other assets less liabilities	0.1
Net Assets	100.0	%

See accompanying notes to financial statements.

49  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Limited Term Government and Agency Fund

Principal Amount		Description	Value (†)
	Bonds and Notes — 98.1% of Net Assets
		ABS Car Loan — 1.4%
$	1,550,000	Avis Budget Rental Car Funding AESOP LLC, Series 2016-1A, Class A, 2.990%, 6/20/2022, 144A	$	1,588,291
	2,210,666	CPS Auto Receivables Trust, Series 2015-C, Class A, 1.770%, 6/17/2019, 144A		2,217,010
	2,695,000	Credit Acceptance Auto Loan Trust, Series 2014-2A, Class A, 1.880%, 3/15/2022, 144A		2,700,192
	1,825,000	Credit Acceptance Auto Loan Trust, Series 2016-2A, Class A, 2.420%, 11/15/2023, 144A		1,834,738
	478,949	First Investors Auto Owner Trust, Series 2014-1A, Class A3, 1.490%, 1/15/2020, 144A		479,113
	3,500,000	NextGear Floorplan Master Owner Trust, Series 2014-1A, Class A, 1.920%, 10/15/2019, 144A		3,490,573
	725,000	NextGear Floorplan Master Owner Trust, Series 2016-1A, Class A2, 2.740%, 4/15/2021, 144A		725,688
				13,035,605
		ABS Home Equity — 0.7%
	2,462,863	Home Partners of America Trust, Series 2016-1, Class A, 2.181%, 3/17/2033, 144A(b)		2,478,842
	2,148,185	Mill City Mortgage Trust, Series 2015-1, Class A1, 2.230%, 6/25/2056, 144A(b)		2,151,174
	1,820,096	Towd Point Mortgage Trust, Series 2015-2, Class 1AE2, 2.750%, 11/25/2060, 144A(b)		1,842,568
				6,472,584
		ABS Student Loan — 0.0%
	400,000	SoFi Professional Loan Program, Series 2016-D, Class A1, 1.600%, 1/25/2039, 144A(b)		400,000
		Agency Commercial Mortgage-Backed Securities — 17.5%
	6,835,078	Federal National Mortgage Association, Series 2015-M17, Class FA, 1.397%, 11/25/2022(b)		6,855,943
	1,000,000	Federal National Mortgage Association, Series 2016-M3, Class ASQ2, 2.263%, 2/25/2023		1,023,941
	6,000,000	FHLMC Multifamily Structured Pass Through Certificates, Series K006, Class A2, 4.251%, 1/25/2020		6,496,807
	4,305,000	FHLMC Multifamily Structured Pass Through Certificates, Series K014, Class A2, 3.871%, 4/25/2021		4,708,702
	4,000,000	FHLMC Multifamily Structured Pass Through Certificates, Series K015, Class A2, 3.230%, 7/25/2021		4,280,541
	6,625,000	FHLMC Multifamily Structured Pass Through Certificates, Series K017, Class A2, 2.873%, 12/25/2021		7,003,968
	3,508,587	FHLMC Multifamily Structured Pass Through Certificates, Series K703, Class A2, 2.699%, 5/25/2018		3,582,093
	693,427	FHLMC Multifamily Structured Pass Through Certificates, Series K704, Class A2, 2.412%, 8/25/2018		706,327
	2,590,000	FHLMC Multifamily Structured Pass Through Certificates, Series K706, Class A2, 2.323%, 10/25/2018		2,639,299

See accompanying notes to financial statements.

|  50

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Limited Term Government and Agency Fund – (continued)

Principal Amount		Description	Value (†)
		Agency Commercial Mortgage-Backed Securities — continued
$	7,896,503	FHLMC Multifamily Structured Pass Through Certificates, Series K708, Class A2, 2.130%, 1/25/2019	$	8,030,295
	34,370,000	FHLMC Multifamily Structured Pass Through Certificates, Series K711, Class A2, 1.730%, 7/25/2019		34,744,420
	5,040,000	FHLMC Multifamily Structured Pass Through Certificates, Series KABM, Class A, 1.225%, 9/25/2022(b)		5,045,945
	1,774,943	FHLMC Multifamily Structured Pass Through Certificates, Series KF06, Class A, 0.855%, 11/25/2021(b)		1,771,607
	12,048,953	FHLMC Multifamily Structured Pass Through Certificates, Series KF14, Class A, 1.175%, 1/25/2023(b)		12,056,521
	5,057,865	FHLMC Multifamily Structured Pass Through Certificates, Series KJ04, Class A1, 1.376%, 10/25/2020		5,060,538
	19,300,000	FHLMC Multifamily Structured Pass Through Certificates, Series KLH2, Class A, 1.225%, 11/25/2022(b)		19,324,183
	26,135,000	FHLMC Multifamily Structured Pass Through Certificates, Series KP03, Class A2, 1.780%, 7/25/2019		26,375,581
	216,741	Government National Mortgage Association, Series 2003-72, Class Z, 5.247%, 11/16/2045(b)		236,368
	192,529	Government National Mortgage Association, Series 2003-88, Class Z, 4.879%, 3/16/2046(b)		209,133
	11,362,046	Government National Mortgage Association, Series 2013-52, Class KX, 3.534%, 8/16/2051(b)		11,781,022
				161,933,234
		Collateralized Mortgage Obligations — 14.4%
	99,136	Federal Home Loan Mortgage Corp., REMIC, Series 1500, Class FD, 1.210%, 5/15/2023(b)(c)		94,823
	65,794	Federal Home Loan Mortgage Corp., REMIC, Series 1552, Class I, 0.910%, 8/15/2023(b)(c)		64,032
	253,696	Federal Home Loan Mortgage Corp., REMIC, Series 2131, Class ZB, 6.000%, 3/15/2029(c)		276,662
	36,249	Federal Home Loan Mortgage Corp., REMIC, Series 2646, Class FM, 0.924%, 11/15/2032(b)(c)		35,544
	1,010,675	Federal Home Loan Mortgage Corp., REMIC, Series 2874, Class BC, 5.000%, 10/15/2019		1,049,407
	1,662,043	Federal Home Loan Mortgage Corp., REMIC, Series 2931, Class DE, 4.000%, 2/15/2020		1,694,112
	1,862,864	Federal Home Loan Mortgage Corp., REMIC, Series 2978, Class JG, 5.500%, 5/15/2035		2,106,332
	2,896,940	Federal Home Loan Mortgage Corp., REMIC, Series 3036, Class NE, 5.000%, 9/15/2035		3,219,979
	375,492	Federal Home Loan Mortgage Corp., REMIC, Series 3057, Class PE, 5.500%, 11/15/2034(c)		373,335
	3,126,744	Federal Home Loan Mortgage Corp., REMIC, Series 3412, Class AY, 5.500%, 2/15/2038		3,387,838
	2,053,249	Federal Home Loan Mortgage Corp., REMIC, Series 3561, Class W, 3.287%, 6/15/2048(b)		2,021,516

See accompanying notes to financial statements.

51  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Limited Term Government and Agency Fund – (continued)

Principal Amount		Description	Value (†)
		Collateralized Mortgage Obligations — continued
$	2,412,367	Federal Home Loan Mortgage Corp., REMIC, Series 3620, Class AT, 4.265%, 12/15/2036(b)	$	2,539,793
	864,469	Federal Home Loan Mortgage Corp., REMIC, Series 4212, Class FW, 2.624%, 6/15/2043(b)		850,702
	1,881,772	Federal National Mortgage Association, REMIC, Series 2003-48, Class GH, 5.500%, 6/25/2033		2,150,590
	67,620	Federal National Mortgage Association, REMIC, Series 1992-162, Class FB, 1.470%, 9/25/2022(b)(c)		66,624
	63,703	Federal National Mortgage Association, REMIC, Series 1994-42, Class FD, 1.070%, 4/25/2024(b)(c)		62,108
	19,066	Federal National Mortgage Association, REMIC, Series 2002-W10, Class A7, 4.034%, 8/25/2042(b)(c)		19,778
	1,054,378	Federal National Mortgage Association, REMIC, Series 2005-100, Class BQ, 5.500%, 11/25/2025		1,160,461
	436,099	Federal National Mortgage Association, REMIC, Series 2005-33, Class QD, 5.000%, 1/25/2034(c)		436,062
	1,174,444	Federal National Mortgage Association, REMIC, Series 2007-73, Class A1, 0.585%, 7/25/2037(b)		1,151,430
	2,288,457	Federal National Mortgage Association, REMIC, Series 2008-86, Class LA, 3.496%, 8/25/2038(b)		2,446,529
	5,412,360	Federal National Mortgage Association, REMIC, Series 2013-67, Class NF, 1.525%, 7/25/2043(b)		5,253,004
	48,479	Federal National Mortgage Association, REMIC, Series G93-19, Class FD, 1.050%, 4/25/2023(b)(c)		47,266
	11,585	FHLMC Structured Pass Through Securities, Series T-60, Class 2A1, 3.479%, 3/25/2044(b)(c)		12,377
	877,555	FHLMC Structured Pass Through Securities, Series T-62, Class 1A1, 1.689%, 10/25/2044(b)		895,659
	1,359,521	Government National Mortgage Association, Series 2010-H20, Class AF, 0.824%, 10/20/2060(b)		1,347,611
	1,209,951	Government National Mortgage Association, Series 2010-H24, Class FA, 0.844%, 10/20/2060(b)		1,199,816
	1,112,470	Government National Mortgage Association, Series 2011-H06, Class FA, 0.944%, 2/20/2061(b)		1,107,858
	1,973,751	Government National Mortgage Association, Series 2012-124, Class HT, 7.221%, 7/20/2032(b)		2,244,105
	3,400,821	Government National Mortgage Association, Series 2012-H15, Class FA, 0.944%, 5/20/2062(b)		3,401,050
	1,250,509	Government National Mortgage Association, Series 2012-H18, Class NA, 1.014%, 8/20/2062(b)		1,248,508
	6,272,755	Government National Mortgage Association, Series 2012-H29, Class HF, 0.994%, 10/20/2062(b)		6,264,996
	5,641,265	Government National Mortgage Association, Series 2013-H02, Class GF, 0.994%, 12/20/2062(b)		5,636,306
	4,796,689	Government National Mortgage Association, Series 2013-H08, Class FA, 0.844%, 3/20/2063(b)		4,757,129
	3,651,120	Government National Mortgage Association, Series 2013-H10, Class FA, 0.894%, 3/20/2063(b)		3,631,166

See accompanying notes to financial statements.

|  52

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Limited Term Government and Agency Fund – (continued)

Principal Amount		Description	Value (†)
		Collateralized Mortgage Obligations — continued
$	12,020,528	Government National Mortgage Association, Series 2013-H22, Class FT, 1.180%, 4/20/2063(b)	$	12,130,546
	6,946,284	Government National Mortgage Association, Series 2014-H14, Class FA, 0.994%, 7/20/2064(b)		6,906,075
	4,833,105	Government National Mortgage Association, Series 2014-H15, Class FA, 0.994%, 7/20/2064(b)		4,801,946
	10,631,136	Government National Mortgage Association, Series 2015-H10, Class JA, 2.250%, 4/20/2065		10,640,703
	3,031,163	Government National Mortgage Association, Series 2015-H11, Class FA, 0.744%, 4/20/2065(b)		3,013,817
	6,903,969	Government National Mortgage Association, Series 2015-H19, Class FH, 0.794%, 7/20/2065(b)		6,883,130
	2,250,154	Government National Mortgage Association, Series 2015-H29, Class FA, 1.194%, 10/20/2065(b)		2,251,166
	1,427,732	Government National Mortgage Association, Series 2015-H30, Class FA, 1.174%, 8/20/2061(b)		1,426,910
	7,034,594	Government National Mortgage Association, Series 2016-H06, Class FC, 1.414%, 2/20/2066(b)		7,085,553
	4,896,383	Government National Mortgage Association, Series 2016-H10, Class FJ, 1.123%, 4/20/2066(b)		4,894,635
	8,960,000	Government National Mortgage Association, Series 2016-H19, Class FJ, 0.924%, 9/20/2063(b)		8,915,259
	374,713	NCUA Guaranteed Notes, Series 2010-A1, Class A, 0.863%, 12/07/2020(b)		373,858
	874,440	NCUA Guaranteed Notes, Series 2010-R1, Class 1A, 0.969%, 10/07/2020(b)		876,142
	1,361,770	NCUA Guaranteed Notes, Series 2010-R3, Class 1A, 1.079%, 12/08/2020(b)		1,364,132
	89,325	NCUA Guaranteed Notes, Series 2010-R3, Class 2A, 1.079%, 12/08/2020(b)		89,511
				133,907,891
		Government Sponsored — 1.5%
	13,510,000	Federal Home Loan Bank, 1.000%, 9/26/2019		13,498,165
		Hybrid ARMs — 11.2%
	729,415	FHLMC, 2.618%, 4/01/2036(b)		757,205
	969,446	FHLMC, 2.643%, 6/01/2037(b)		1,005,461
	328,308	FHLMC, 2.667%, 9/01/2038(b)		347,246
	1,742,190	FHLMC, 2.681%, 2/01/2036(b)		1,845,277
	1,122,811	FHLMC, 2.694%, 9/01/2038(b)		1,182,525
	5,721,909	FHLMC, 2.709%, 3/01/2037(b)		6,048,926
	2,187,430	FHLMC, 2.720%, 7/01/2033(b)		2,315,794
	3,565,684	FHLMC, 2.721%, 2/01/2036(b)		3,749,812
	1,368,552	FHLMC, 2.754%, 9/01/2038(b)		1,448,444
	880,269	FHLMC, 2.765%, 4/01/2037(b)		931,170
	665,119	FHLMC, 2.798%, 11/01/2038(b)		704,811
	895,565	FHLMC, 2.907%, 11/01/2038(b)		947,070
	1,555,806	FHLMC, 2.921%, 3/01/2036(b)		1,646,566
	2,553,083	FHLMC, 2.927%, 9/01/2035(b)		2,708,766
	579,986	FHLMC, 2.964%, 2/01/2035(b)		611,893
	2,642,512	FHLMC, 2.975%, 4/01/2037(b)		2,793,474
	633,819	FHLMC, 3.001%, 12/01/2034(b)		671,570

See accompanying notes to financial statements.

53  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Limited Term Government and Agency Fund – (continued)

Principal Amount		Description	Value (†)
		Hybrid ARMs — continued
$	1,562,839	FHLMC, 3.009%, 3/01/2038(b)	$	1,657,496
	708,191	FHLMC, 3.207%, 3/01/2037(b)		752,103
	139,694	FHLMC, 3.460%, 12/01/2037(b)		145,074
	243,818	FNMA, 2.423%, 2/01/2037(b)		253,565
	1,938,069	FNMA, 2.436%, 7/01/2035(b)		2,021,048
	1,336,146	FNMA, 2.527%, 1/01/2036(b)		1,417,199
	737,120	FNMA, 2.543%, 10/01/2033(b)		778,893
	2,785,555	FNMA, 2.625%, 11/01/2033(b)		2,923,244
	2,021,414	FNMA, 2.629%, 10/01/2033(b)		2,141,004
	540,389	FNMA, 2.634%, 11/01/2035(b)		571,095
	750,612	FNMA, 2.637%, 12/01/2034(b)		789,580
	4,695,777	FNMA, 2.649%, 4/01/2034(b)		4,956,185
	662,131	FNMA, 2.660%, 9/01/2034(b)		696,355
	3,543,903	FNMA, 2.689%, 7/01/2035(b)		3,733,579
	3,261,561	FNMA, 2.695%, 4/01/2037(b)		3,426,305
	1,127,951	FNMA, 2.703%, 9/01/2036(b)		1,183,480
	1,422,887	FNMA, 2.738%, 6/01/2036(b)		1,513,233
	6,094,172	FNMA, 2.748%, 10/01/2034(b)		6,438,710
	1,927,283	FNMA, 2.751%, 4/01/2037(b)		2,037,170
	342,277	FNMA, 2.762%, 4/01/2033(b)		360,589
	4,873,130	FNMA, 2.763%, 9/01/2037(b)		5,127,103
	1,449,940	FNMA, 2.801%, 6/01/2033(b)		1,532,071
	879,187	FNMA, 2.806%, 2/01/2037(b)		929,222
	4,104,049	FNMA, 2.807%, 6/01/2037(b)		4,359,536
	1,881,253	FNMA, 2.840%, 8/01/2035(b)		1,982,498
	1,394,468	FNMA, 2.842%, 4/01/2034(b)		1,470,888
	1,112,324	FNMA, 2.873%, 5/01/2035(b)		1,184,657
	481,983	FNMA, 2.905%, 8/01/2035(b)		510,098
	1,139,343	FNMA, 2.906%, 8/01/2034(b)		1,211,001
	4,898,447	FNMA, 2.912%, 3/01/2037(b)		5,174,969
	512,240	FNMA, 2.915%, 8/01/2038(b)		533,554
	1,604,810	FNMA, 2.924%, 2/01/2047(b)		1,685,814
	311,729	FNMA, 2.932%, 8/01/2033(b)		330,817
	3,104,522	FNMA, 2.938%, 9/01/2037(b)		3,279,677
	498,151	FNMA, 2.977%, 8/01/2036(b)		529,421
	744,485	FNMA, 3.011%, 7/01/2041(b)		777,882
	3,948,882	FNMA, 3.039%, 7/01/2037(b)		4,174,272
	1,453,104	FNMA, 3.723%, 6/01/2035(b)		1,537,895
				103,843,292
		Mortgage Related — 18.2%
	115,185	FHLMC, 3.000%, 10/01/2026		121,030
	830,393	FHLMC, 4.000%, with various maturities from 2024 to 2042(d)		889,097
	616,031	FHLMC, 4.500%, with various maturities from 2025 to 2034(d)		659,403
	257,778	FHLMC, 5.500%, 10/01/2023		278,862
	21,376	FHLMC, 6.000%, 11/01/2019		22,353
	388,761	FHLMC, 6.500%, with various maturities from 2017 to 2034(d)		462,647
	444	FHLMC, 7.500%, 6/01/2026		508

See accompanying notes to financial statements.

|  54

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Limited Term Government and Agency Fund – (continued)

Principal Amount		Description	Value (†)
		Mortgage Related — continued
$	1,016	FHLMC, 10.000%, 7/01/2019	$	1,068
	17,118	FHLMC, 11.500%, 4/01/2020		17,378
	184,299	FNMA, 3.000%, 3/01/2042		192,982
	2,273,646	FNMA, 5.000%, with various maturities from 2037 to 2038(d)		2,554,052
	1,231,376	FNMA, 5.500%, with various maturities from 2018 to 2033(d)		1,366,694
	1,651,014	FNMA, 6.000%, with various maturities from 2017 to 2022(d)		1,794,481
	233,281	FNMA, 6.500%, with various maturities from 2017 to 2037(d)		271,982
	13,309	FNMA, 7.000%, 12/01/2022		13,345
	91,131	FNMA, 7.500%, with various maturities from 2017 to 2032(d)		104,598
	4,336,123	GNMA, 2.208%, 2/20/2061(b)		4,521,165
	3,232,773	GNMA, 2.339%, 2/20/2063(b)		3,388,302
	4,385,572	GNMA, 2.626%, 3/20/2063(b)		4,633,273
	1,261,976	GNMA, 2.724%, 6/20/2065(b)		1,348,568
	1,210,219	GNMA, 2.730%, 5/20/2065(b)		1,294,990
	2,445,643	GNMA, 2.822%, 2/20/2063(b)		2,594,125
	3,551,932	GNMA, 4.427%, 6/20/2063		3,854,579
	1,948,674	GNMA, 4.444%, 3/20/2063		2,096,102
	1,907,628	GNMA, 4.463%, 2/20/2063		2,041,135
	4,148,796	GNMA, 4.485%, 2/20/2062		4,378,834
	4,816,485	GNMA, 4.489%, 10/20/2065		5,458,652
	4,374,273	GNMA, 4.531%, 12/20/2061		4,610,692
	6,853,370	GNMA, 4.542%, 12/20/2062		7,342,516
	16,544,009	GNMA, 4.550%, 12/20/2061		17,444,170
	1,959,476	GNMA, 4.561%, 3/20/2062		2,073,678
	11,545,510	GNMA, 4.590%, 11/20/2062		12,339,444
	1,388,086	GNMA, 4.594%, 4/20/2063		1,499,740
	4,094,189	GNMA, 4.595%, 6/20/2062		4,333,277
	2,927,424	GNMA, 4.605%, with various maturities from 2063 to 2066(d)		3,279,994
	1,203,793	GNMA, 4.608%, 8/20/2061		1,261,499
	1,712,536	GNMA, 4.632%, 3/20/2062		1,810,351
	1,846,024	GNMA, 4.634%, 3/20/2064		2,063,485
	2,147,848	GNMA, 4.651%, 11/20/2063		2,397,994
	450,104	GNMA, 4.659%, 1/20/2064		503,498
	6,964,075	GNMA, 4.667%, 2/20/2062		7,366,325
	8,263,251	GNMA, 4.683%, 8/20/2061		8,588,712
	3,384,024	GNMA, 4.686%, 2/20/2062		3,564,018
	1,913,903	GNMA, 4.687%, 5/20/2064		2,164,647
	1,397,257	GNMA, 4.699%, 6/20/2061		1,445,477
	7,166,717	GNMA, 4.700%, with various maturities in 2061(d)		7,485,738
	1,436,100	GNMA, 4.717%, 3/20/2061		1,492,528
	1,293,394	GNMA, 4.755%, 8/20/2062		1,365,710
	582,287	GNMA, 5.082%, 4/20/2061		614,393
	18,371	GNMA, 6.000%, 12/15/2031		21,462
	80,605	GNMA, 6.500%, 5/15/2031		97,180
	75,702	GNMA, 7.000%, 10/15/2028		84,167
	4,312,989	Government National Mortgage Association, Series 2015-H04, Class FL, 0.964%, 2/20/2065(b)		4,281,786

See accompanying notes to financial statements.

55  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Limited Term Government and Agency Fund – (continued)

Principal Amount		Description	Value (†)
		Mortgage Related — continued
$	5,629,379	Government National Mortgage Association, Series 2015-H05, Class FA, 0.794%, 4/20/2061(b)	$	5,587,691
	13,069,884	Government National Mortgage Association, Series 2015-H09, Class HA, 1.750%, 3/20/2065		13,081,801
	6,560,540	Government National Mortgage Association, Series 2015-H12, Class FL, 0.724%, 5/20/2065(b)		6,484,784
				169,046,962
		Non-Agency Commercial Mortgage-Backed Securities — 5.9%
	636,349	A10 Securitization LLC, Series 2014-1, Class A1, 1.720%, 4/15/2033, 144A		633,516
	2,482,346	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2007-2, Class A4, 5.791%, 4/10/2049(b)		2,495,375
	313,904	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2007-5, Class A4, 5.492%, 2/10/2051		321,167
	3,445,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2016-ASHF, Class A, 2.424%, 12/15/2033, 144A(b)		3,485,834
	478,172	Barclays Commercial Mortgage Securities, Series 2015-RRI, Class A, 1.674%, 5/15/2032, 144A(b)		478,168
	3,256,355	CDGJ Commercial Mortgage Trust Pass Through Certificates, Series 2014-BXCH, 1.924%, 12/15/2027, 144A(b)		3,259,415
	2,465,794	CG-CCRE Commercial Mortgage Trust, Series 2014-FL1, Class A, 1.474%, 6/15/2031, 144A(b)		2,465,014
	3,425,000	Commercial Mortgage Pass Through Certificates, Series 2014-FL5, Class A, 1.894%, 10/15/2031, 144A(b)		3,361,697
	3,040,000	Commercial Mortgage Pass Through Certificates, Series 2014-FL5, Class SV1, 2.374%, 10/15/2031, 144A(b)(e)(f)		3,037,018
	4,282,000	Commercial Mortgage Pass Through Certificates, Series 2016-DC2, Class ASB, 3.550%, 2/10/2049		4,576,456
	2,438,425	GP Portfolio Trust, Series 2014-GPP, Class A, 1.474%, 2/15/2027, 144A(b)		2,434,522
	3,280,539	Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4, 5.736%, 12/10/2049		3,367,221
	3,042,252	Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/2039		3,046,731
	5,535,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2014-CBM, Class A, 1.424%, 10/15/2029, 144A(b)		5,480,323
	1,478,689	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2014-FL5, Class A, 1.504%, 7/15/2031, 144A(b)		1,478,041
	4,115,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2015-SGP, Class A, 2.224%, 7/15/2036, 144A(b)		4,138,186
	985,704	LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A3, 5.430%, 2/15/2040		993,848
	706,197	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-5, Class A4, 5.378%, 8/12/2048		709,618
	1,788,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051(b)		1,805,955
	1,723,925	Resource Capital Corp. Ltd., Series 2014-CRE2, Class A, 1.580%, 4/15/2032, 144A(b)		1,705,287
	3,700,000	Starwood Retail Property Trust, Inc., 1.744%, 11/15/2027, 144A(b)		3,670,622

See accompanying notes to financial statements.

|  56

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Limited Term Government and Agency Fund – (continued)

Principal Amount		Description	Value (†)
		Non-Agency Commercial Mortgage-Backed Securities — continued
$	1,361,349	Wachovia Bank Commercial Mortgage Trust, Series 2007-C34, Class A3, 5.678%, 5/15/2046	$	1,386,189
				54,330,203
		Sovereigns — 0.2%
	1,955,000	U.S. Department of Housing and Urban Development, Series 4, 1.880%, 8/01/2019		1,995,566
		Treasuries — 27.1%
	6,635,000	U.S. Treasury Note, 0.750%, 7/15/2019		6,613,489
	6,000,000	U.S. Treasury Note, 0.750%, 8/15/2019		5,979,138
	15,365,000	U.S. Treasury Note, 1.000%, 10/31/2016		15,375,156
	15,970,000	U.S. Treasury Note, 1.125%, 1/15/2019		16,077,303
	24,105,000	U.S. Treasury Note, 1.125%, 6/30/2021		24,076,749
	28,700,000	U.S. Treasury Note, 1.125%, 8/31/2021		28,670,841
	21,450,000	U.S. Treasury Note, 1.250%, 1/31/2020		21,647,748
	48,640,000	U.S. Treasury Note, 1.375%, 1/31/2021		49,172,024
	15,120,000	U.S. Treasury Note, 1.375%, 9/30/2023		15,062,710
	4,860,000	U.S. Treasury Note, 1.500%, 5/31/2020		4,943,339
	8,705,000	U.S. Treasury Note, 1.625%, 3/31/2019		8,870,595
	2,385,000	U.S. Treasury Note, 1.625%, 8/31/2019		2,435,216
	10,050,000	U.S. Treasury Note, 1.625%, 12/31/2019		10,266,306
	17,125,000	U.S. Treasury Note, 1.625%, 7/31/2020		17,497,606
	10,360,000	U.S. Treasury Note, 1.625%, 11/30/2020		10,583,797
	13,545,000	U.S. Treasury Note, 2.125%, 8/31/2020		14,092,625
				251,364,642
		Total Bonds and Notes (Identified Cost $912,811,312)		909,828,144
	Short-Term Investments — 2.1%
	7,910,000	Federal Home Loan Bank Discount Notes, 0.100%, 10/06/2016(g)		7,909,873
	7,910,000	Federal Home Loan Bank Discount Notes, 0.100%, 10/07/2016(g)		7,909,834
	4,037,380	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $4,037,390 on 10/03/2016 collateralized by $3,750,000 U.S. Treasury Note, 2.750% due 2/15/2024 valued at $4,120,313 including accrued interest (Note 2 of Notes to Financial Statements)		4,037,380
		Total Short-Term Investments (Identified Cost $19,857,226)		19,857,087
		Total Investments — 100.2% (Identified Cost $932,668,538)(a)		929,685,231
		Other assets less liabilities — (0.2)%		(2,088,995	)
		Net Assets — 100.0%	$	927,596,236
	(†)	See Note 2 of Notes to Financial Statements.

See accompanying notes to financial statements.

57  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Limited Term Government and Agency Fund – (continued)

(a)	Federal Tax Information:
	At September 30, 2016, the net unrealized depreciation on investments based on a cost of $932,952,443 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	$	5,747,831
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(9,015,043	)
	Net unrealized depreciation	$	(3,267,212	)
(b)	Variable rate security. Rate as of September 30, 2016 is disclosed.
(c)	Fair valued by the Fund’s adviser. At September 30, 2016, the value of these securities amounted to $1,488,611 or 0.2% of net assets. See Note 2 of Notes to Financial Statements.
(d)	The Fund’s investment in mortgage related securities of 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)	Securities classified as fair valued pursuant to the Fund’s pricing policies and procedures. At September 30, 2016, the value of these securities amounted to $3,037,018 or 0.3% of net assets. See Note 2 of Notes to Financial Statements.
(f)	Illiquid security. (Unaudited)
(g)	Interest rate represents discount rate at time of purchase; not a coupon rate.
144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2016, the value of Rule 144A holdings amounted to $55,535,832 or 6.0% of net assets.
ABS	Asset-Backed Securities
ARMs	Adjustable Rate Mortgages
FHLMC	Federal Home Loan Mortgage Corp.
FNMA	Federal National Mortgage Association
GNMA	Government National Mortgage Association
REMIC	Real Estate Mortgage Investment Conduit

Industry Summary at September 30, 2016

Treasuries	27.1	%
Mortgage Related	18.2
Agency Commercial Mortgage-Backed Securities	17.5
Collateralized Mortgage Obligations	14.4
Hybrid ARMs	11.2
Non-Agency Commercial Mortgage-Backed Securities	5.9
Other Investments, less than 2% each	3.8
Short-Term Investments	2.1
Total Investments	100.2
Other assets less liabilities	(0.2	)
Net Assets	100.0	%

See accompanying notes to financial statements.

|  58

Statements of Assets and Liabilities

September 30, 2016

	High Income Fund			Intermediate Duration Bond Fund			Limited Term Government and Agency Fund
ASSETS
Investments at cost	$	177,390,961		$	160,358,607		$	932,668,538
Net unrealized appreciation (depreciation)		(3,057,367	)		1,325,575			(2,983,307	)
Investments at value		174,333,594			161,684,182			929,685,231
Cash		11,497			—			8,963,956
Due from brokers (Note 2)		7,000			—			—
Receivable for Fund shares sold		409,880			3,625,476			903,845
Receivable for securities sold		3,125			3,607,407			40,358,826
Dividends and interest receivable		2,502,833			557,071			2,466,162
Unrealized appreciation on forward foreign currency contracts (Note 2)		233			—			—
Tax reclaims receivable		113			—			—
Prepaid expenses (Note 7)		667			630			4,123
TOTAL ASSETS		177,268,942			169,474,766			982,382,143
LIABILITIES
Payable for securities purchased		576,206			7,435,392			52,896,451
Payable for Fund shares redeemed		94,323			68,176			866,403
Distributions payable		—			—			282,209
Management fees payable (Note 6)		104,536			20,822			286,840
Deferred Trustees’ fees (Note 6)		138,870			91,845			277,672
Administrative fees payable (Note 6)		6,242			5,648			33,812
Payable to distributor (Note 6d)		2,170			670			5,346
Other accounts payable and accrued expenses		70,134			38,689			137,174
TOTAL LIABILITIES		992,481			7,661,242			54,785,907
NET ASSETS	$	176,276,461		$	161,813,524		$	927,596,236
NET ASSETS CONSIST OF:
Paid-in capital	$	182,442,032		$	159,609,800		$	943,352,211
Undistributed (Distributions in excess of) net investment income		(462,119	)		(46,973	)		206,971
Accumulated net realized gain (loss) on investments, futures contracts and foreign currency transactions		(2,644,640	)		925,122			(12,979,639	)
Net unrealized appreciation (depreciation) on investments, futures contracts and foreign currency translations		(3,058,812	)		1,325,575			(2,983,307	)
NET ASSETS	$	176,276,461		$	161,813,524		$	927,596,236

See accompanying notes to financial statements.

59  |

Statements of Assets and Liabilities (continued)

September 30, 2016

	High Income Fund		Intermediate Duration Bond Fund		Limited Term Government and Agency Fund
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	34,820,023	$	19,327,479	$	442,671,381
Shares of beneficial interest		8,231,175		1,836,345		38,461,737
Net asset value and redemption price per share	$	4.23	$	10.52	$	11.51
Offering price per share (100/[100-maximum sales charge] of net asset value) (Note 1)	$	4.42	$	10.99	$	11.77
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	12,287,615	$	3,088,270	$	73,026,808
Shares of beneficial interest		2,897,625		293,283		6,339,471
Net asset value and offering price per share	$	4.24	$	10.53	$	11.52
Class Y shares:
Net assets	$	129,168,823	$	139,397,775	$	411,898,047
Shares of beneficial interest		30,608,965		13,248,536		35,673,753
Net asset value, offering and redemption price per share	$	4.22	$	10.52	$	11.55

See accompanying notes to financial statements.

|  60

Statements of Operations

For the Year Ended September 30, 2016

	High Income Fund			Intermediate Duration Bond Fund			Limited Term Government and Agency Fund
INVESTMENT INCOME
Interest	$	9,845,287		$	3,328,498		$	15,742,859
Dividends		321,901			—			—
Less net foreign taxes withheld		(2,758	)		(80	)		—
		10,164,430			3,328,418			15,742,859
Expenses
Management fees (Note 6)		971,664			330,657			3,309,940
Service and distribution fees (Note 6)		203,910			48,482			1,782,782
Administrative fees (Note 6)		71,381			58,358			401,349
Trustees’ fees and expenses (Note 6)		28,536			25,555			51,193
Transfer agent fees and expenses (Note 6)		197,329			41,660			719,832
Audit and tax services fees		52,554			52,558			56,844
Custodian fees and expenses		23,140			19,407			46,340
Legal fees		2,651			2,182			15,311
Registration fees		66,659			64,111			81,496
Shareholder reporting expenses		15,158			20,771			48,327
Miscellaneous expenses (Note 7)		15,326			10,365			32,743
Total expenses		1,648,308			674,106			6,546,157
Less waiver and/or expense reimbursement (Note 6)		(67,553	)		(96,550	)		—
Net expenses		1,580,755			577,556			6,546,157
Net investment income		8,583,675			2,750,862			9,196,702
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		(5,386,807	)		1,570,969			2,246,153
Futures contracts		(176,542	)		—			—
Foreign currency transactions		217,666			—			—
Net change in unrealized appreciation (depreciation) on:
Investments		13,492,650			1,160,767			(2,140,764	)
Futures contracts		160,868			—			—
Foreign currency translations		(247,496	)		—			—
Net realized and unrealized gain on investments, futures contracts and foreign currency transactions		8,060,339			2,731,736			105,389
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	16,644,014		$	5,482,598		$	9,302,091

See accompanying notes to financial statements.

61  |

Statements of Changes in Net Assets

	High Income Fund						Intermediate Duration Bond Fund
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2016			Year Ended September 30, 2015
FROM OPERATIONS:
Net investment income	$	8,583,675		$	8,768,344		$	2,750,862		$	1,895,908
Net realized gain (loss) on investments, futures contracts and foreign currency transactions		(5,345,683	)		1,420,418			1,570,969			453,061
Net change in unrealized appreciation (depreciation) on investments, futures contracts and foreign currency translations		13,406,022			(19,080,751	)		1,160,767			(279,129	)
Net increase (decrease) in net assets resulting from operations		16,644,014			(8,891,989	)		5,482,598			2,069,840
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(1,391,187	)		(1,926,317	)		(390,657	)		(195,269	)
Class B(a)		(14	)		(2,085	)		—			—
Class C		(384,341	)		(515,596	)		(1	)		—
Class Y		(4,855,484	)		(6,296,139	)		(2,556,145	)		(1,890,490	)
Net realized capital gains
Class A		(81,866	)		(1,004,492	)		(64,649	)		(2,801	)
Class B(a)		(3	)		(2,711	)		—			—
Class C		(29,530	)		(348,393	)		—			—
Class Y		(273,287	)		(3,159,866	)		(284,383	)		(35,990	)
Total distributions		(7,015,712	)		(13,255,599	)		(3,295,835	)		(2,124,550	)
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		(670,213	)		6,973,865			52,609,062			34,383,012
Net increase (decrease) in net assets		8,958,089			(15,173,723	)		54,795,825			34,328,302
NET ASSETS
Beginning of the year		167,318,372			182,492,095			107,017,699			72,689,397
End of the year	$	176,276,461		$	167,318,372		$	161,813,524		$	107,017,699
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME	$	(462,119	)	$	61,927		$	(46,973	)	$	(64,773	)

(a) On January 11, 2016, Class B shares were converted into Class A shares. See Note 1 of Notes to Financial Statements.

See accompanying notes to financial statements.

|  62

Statements of Changes in Net Assets (continued)

	Limited Term Government and Agency Fund
	Year Ended September 30, 2016			Year Ended September 30, 2015
FROM OPERATIONS:
Net investment income	$	9,196,702		$	9,761,506
Net realized gain on investments		2,246,153			4,686,019
Net change in unrealized appreciation (depreciation) on investments		(2,140,764	)		(4,747,808	)
Net increase in net assets resulting from operations		9,302,091			9,699,717
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(5,792,542	)		(5,253,842	)
Class B(a)		(5,359	)		(29,227	)
Class C		(543,862	)		(503,848	)
Class Y		(7,311,896	)		(6,898,857	)
Total distributions		(13,653,659	)		(12,685,774	)
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		88,093,679			141,117,260
Net increase in net assets		83,742,111			138,131,203
NET ASSETS
Beginning of the year		843,854,125			705,722,922
End of the year	$	927,596,236		$	843,854,125
UNDISTRIBUTED NET INVESTMENT INCOME	$	206,971		$	38,911

(a) On January 11, 2016, Class B shares were converted into Class A shares. See Note 1 of Notes to Financial Statements.

See accompanying notes to financial statements.

63  |

Financial Highlights

For a share outstanding throughout each period.

	High Income Fund—Class A
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	3.99		$	4.49		$	4.59		$	4.60		$	4.46
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.20			0.19			0.21			0.24			0.24
Net realized and unrealized gain (loss)		0.21			(0.39	)		0.17			0.03			0.59
Total from Investment Operations		0.41			(0.20	)		0.38			0.27			0.83
LESS DISTRIBUTIONS FROM:
Net investment income		(0.16	)		(0.19	)		(0.22	)		(0.27	)		(0.30	)
Net realized capital gains		(0.01	)		(0.11	)		(0.26	)		(0.01	)		(0.39	)
Total Distributions		(0.17	)		(0.30	)		(0.48	)		(0.28	)		(0.69	)
Net asset value, end of the period	$	4.23		$	3.99		$	4.49		$	4.59		$	4.60
Total return(b)		10.66	%(c)		(4.78	)%(c)		8.42	%		6.27	%		20.90	%(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	34,820		$	37,870		$	42,630		$	45,791		$	95,876
Net expenses		1.10	%(d)		1.11	%(d)(e)		1.14	%		1.15	%(f)		1.15	%(d)
Gross expenses		1.14	%		1.13	%		1.14	%		1.15	%(f)		1.19	%
Net investment income		5.16	%		4.41	%		4.57	%		5.11	%		5.50	%
Portfolio turnover rate		38	%		69	%		59	%		47	%		34	%

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

(b) A sales charge for Class A shares is not reflected in total return calculations.

(c) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

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

(e) Effective July 1, 2015, the expense limit decreased to 1.10%.

(f) Includes fee/expense recovery of 0.02%.

See accompanying notes to financial statements.

|  64

Financial Highlights (continued)

For a share outstanding throughout each period.

	High Income Fund—Class C
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	4.00		$	4.50		$	4.61		$	4.61		$	4.47
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.18			0.16			0.18			0.21			0.21
Net realized and unrealized gain (loss)		0.20			(0.39	)		0.16			0.04			0.59
Total from Investment Operations		0.38			(0.23	)		0.34			0.25			0.80
LESS DISTRIBUTIONS FROM:
Net investment income		(0.13	)		(0.16	)		(0.19	)		(0.24	)		(0.27	)
Net realized capital gains		(0.01	)		(0.11	)		(0.26	)		(0.01	)		(0.39	)
Total Distributions		(0.14	)		(0.27	)		(0.45	)		(0.25	)		(0.66	)
Net asset value, end of the period	$	4.24		$	4.00		$	4.50		$	4.61		$	4.61
Total return(b)		9.81	%(c)		(5.48	)%(c)		7.60	%		5.46	%		19.96	%(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	12,288		$	12,609		$	14,555		$	15,233		$	16,863
Net expenses		1.85	%(d)		1.86	%(d)(e)		1.89	%		1.90	%(f)		1.90	%(d)
Gross expenses		1.89	%		1.88	%		1.89	%		1.90	%(f)		1.94	%
Net investment income		4.43	%		3.68	%		3.84	%		4.36	%		4.78	%
Portfolio turnover rate		38	%		69	%		59	%		47	%		34	%

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

(b) A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

(c) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

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

(e) Effective July 1, 2015, the expense limit decreased to 1.85%.

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

See accompanying notes to financial statements.

65  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	High Income Fund—Class Y
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	3.98		$	4.48		$	4.59		$	4.59		$	4.46
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.21			0.20			0.22			0.25			0.26
Net realized and unrealized gain (loss)		0.21			(0.39	)		0.16			0.04			0.57
Total from Investment Operations		0.42			(0.19	)		0.38			0.29			0.83
LESS DISTRIBUTIONS FROM:
Net investment income		(0.17	)		(0.20	)		(0.23	)		(0.28	)		(0.31	)
Net realized capital gains		(0.01	)		(0.11	)		(0.26	)		(0.01	)		(0.39	)
Total Distributions		(0.18	)		(0.31	)		(0.49	)		(0.29	)		(0.70	)
Net asset value, end of the period	$	4.22		$	3.98		$	4.48		$	4.59		$	4.59
Total return		10.98	%(b)		(4.54	)%(b)		8.72	%		6.56	%		20.93	%(b)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	129,169		$	116,837		$	125,185		$	108,170		$	110,917
Net expenses		0.85	%(c)		0.86	%(c)(d)		0.89	%		0.90	%(e)		0.90	%(c)
Gross expenses		0.89	%		0.88	%		0.89	%		0.90	%(e)		0.95	%
Net investment income		5.43	%		4.67	%		4.83	%		5.37	%		5.78	%
Portfolio turnover rate		38	%		69	%		59	%		47	%		34	%

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

(b) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(c) The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(d) Effective July 1, 2015, the expense limit decreased to 0.85%.

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

See accompanying notes to financial statements.

|  66

Financial Highlights (continued)

For a share outstanding throughout each period.

	Intermediate Duration Bond Fund—Class A*
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	10.39		$	10.39		$	10.34		$	10.80		$	10.55
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.20			0.20			0.22			0.18			0.20
Net realized and unrealized gain (loss)		0.17			0.03			0.11			(0.23	)		0.39
Total from Investment Operations		0.37			0.23			0.33			(0.05	)		0.59
LESS DISTRIBUTIONS FROM:
Net investment income		(0.21	)		(0.22	)		(0.25	)		(0.24	)		(0.26	)
Net realized capital gains		(0.03	)		(0.01	)		(0.03	)		(0.17	)		(0.08	)
Total Distributions		(0.24	)		(0.23	)		(0.28	)		(0.41	)		(0.34	)
Net asset value, end of the period	$	10.52		$	10.39		$	10.39		$	10.34		$	10.80
Total return(b)(c)		3.64	%		2.17	%		3.24	%		(0.46	)%		5.69	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	19,327		$	18,425		$	5,931		$	5,601		$	3,084
Net expenses(d)		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Gross expenses		0.72	%		0.71	%		0.85	%		0.79	%		0.84	%
Net investment income		1.89	%		1.93	%		2.07	%		1.71	%		1.91	%
Portfolio turnover rate		151	%		151	%		134	%		124	%		82	%

* Effective August 31, 2016, Retail Class shares were redesignated as Class A shares. See Note 1 of Notes to Financial Statements.

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

(b) A sales charge for Class A shares is not reflected in total return calculations.

(c) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

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

See accompanying notes to financial statements.

67  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Intermediate Duration Bond Fund—Class C
	Period Ended September 30, 2016*
Net asset value, beginning of the period	$	10.53
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.01
Net realized and unrealized gain (loss)		0.00	(g)
Total from Investment Operations		0.01
LESS DISTRIBUTIONS FROM:
Net investment income		(0.01	)
Net realized capital gains		—
Total Distributions		(0.01	)
Net asset value, end of the period	$	10.53
Total return(b)(c)(d)		0.08	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	3,088
Net expenses(e)(f)		1.40	%
Gross expenses(f)		1.56	%
Net investment income(f)		0.86	%
Portfolio turnover rate		151	%

* From commencement of Class operations on August 31, 2016 through September 30, 2016.

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

(b) A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

(c) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d) Periods less than one year are not annualized.

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

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

(g) Amount rounds to less than $0.01 per share.

See accompanying notes to financial statements.

|  68

Financial Highlights (continued)

For a share outstanding throughout each period.

	Intermediate Duration Bond Fund—Class Y*
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	10.39		$	10.39		$	10.33		$	10.80		$	10.54
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.22			0.22			0.24			0.21			0.22
Net realized and unrealized gain (loss)		0.18			0.04			0.12			(0.24	)		0.40
Total from Investment Operations		0.40			0.26			0.36			(0.03	)		0.62
LESS DISTRIBUTIONS FROM:
Net investment income		(0.24	)		(0.25	)		(0.27	)		(0.27	)		(0.28	)
Net realized capital gains		(0.03	)		(0.01	)		(0.03	)		(0.17	)		(0.08	)
Total Distributions		(0.27	)		(0.26	)		(0.30	)		(0.44	)		(0.36	)
Net asset value, end of the period	$	10.52		$	10.39		$	10.39		$	10.33		$	10.80
Total return(b)		3.90	%		2.42	%		3.60	%		(0.30	)%		6.06	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	139,398		$	88,592		$	66,759		$	66,424		$	75,588
Net expenses(c)		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Gross expenses		0.47	%		0.47	%		0.57	%		0.48	%		0.51	%
Net investment income		2.11	%		2.15	%		2.31	%		1.97	%		2.12	%
Portfolio turnover rate		151	%		151	%		134	%		124	%		82	%

* Effective August 31, 2016, Institutional Class shares were redesignated as Class Y shares. See Note 1 of Notes to Financial Statements.

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

(b) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(c) The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

See accompanying notes to financial statements.

69  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Limited Term Government and Agency Fund—Class A
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	11.57		$	11.61		$	11.68		$	12.04		$	11.87
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.11			0.14			0.16			0.13			0.18
Net realized and unrealized gain (loss)		0.00	(b)		0.01	(c)		0.01			(0.23	)		0.28
Total from Investment Operations		0.11			0.15			0.17			(0.10	)		0.46
LESS DISTRIBUTIONS FROM:
Net investment income		(0.17	)		(0.19	)		(0.24	)		(0.26	)		(0.29	)
Net realized capital gains		—			—			—			(0.00	)(b)		(0.00	)(b)
Paid-in capital		—			—			—			(0.00	)(b)		—
Total Distributions		(0.17	)		(0.19	)		(0.24	)		(0.26	)		(0.29	)
Net asset value, end of the period	$	11.51		$	11.57		$	11.61		$	11.68		$	12.04
Total return(d)		0.93	%		1.26	%		1.44	%		(0.81	)%		3.94	%(e)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	442,671		$	346,317		$	314,360		$	355,212		$	357,870
Net expenses		0.77	%		0.77	%		0.80	%(f)		0.87	%(g)		0.85	%(h)
Gross expenses		0.77	%		0.77	%		0.80	%(f)		0.87	%(g)		0.90	%
Net investment income		0.96	%		1.21	%		1.35	%		1.11	%		1.54	%
Portfolio turnover rate		109	%(i)		48	%		24	%		39	%		56	%

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

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

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

(d) A sales charge for Class A shares is not reflected in total return calculations.

(e) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

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

(g) Includes corporate tax expenses of 0.03%. Without this expense the ratio of net expenses would have been 0.84%.

(h) The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(i) The variation in the Fund’s turnover rate from 2015 to 2016 was primarily due to fluctuation in the level of fund assets due to shareholder flows.

See accompanying notes to financial statements.

|  70

Financial Highlights (continued)

For a share outstanding throughout each period.

	Limited Term Government and Agency Fund—Class C
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	11.58		$	11.62		$	11.69		$	12.05		$	11.88
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.02			0.05			0.07			0.04			0.10
Net realized and unrealized gain (loss)		0.00	(b)		0.01	(c)		0.01			(0.23	)		0.27
Total from Investment Operations		0.02			0.06			0.08			(0.19	)		0.37
LESS DISTRIBUTIONS FROM:
Net investment income		(0.08	)		(0.10	)		(0.15	)		(0.17	)		(0.20	)
Net realized capital gains		—			—			—			(0.00	)(b)		(0.00	)(b)
Paid-in capital		—			—			—			(0.00	)(b)		—
Total Distributions		(0.08	)		(0.10	)		(0.15	)		(0.17	)		(0.20	)
Net asset value, end of the period	$	11.52		$	11.58		$	11.62		$	11.69		$	12.05
Total return(d)		0.18	%		0.51	%		0.69	%		(1.55	)%		3.17	%(e)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	73,027		$	63,167		$	56,936		$	71,963		$	75,522
Net expenses		1.52	%		1.53	%		1.55	%(f)		1.62	%(g)		1.60	%(h)
Gross expenses		1.52	%		1.53	%		1.55	%(f)		1.62	%(g)		1.65	%
Net investment income		0.21	%		0.47	%		0.61	%		0.36	%		0.80	%
Portfolio turnover rate		109	%(i)		48	%		24	%		39	%		56	%

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

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

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

(d) A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

(e) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

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

(g) Includes corporate tax expenses of 0.03%. Without this expense the ratio of net expenses would have been 1.59%.

(h) The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(i) The variation in the Fund’s turnover rate from 2015 to 2016 was primarily due to fluctuation in the level of fund assets due to shareholder flows.

See accompanying notes to financial statements.

71  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Limited Term Government and Agency Fund—Class Y
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	11.61		$	11.65		$	11.72		$	12.08		$	11.91
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.14			0.17			0.18			0.16			0.21
Net realized and unrealized gain (loss)		0.00	(b)		0.01	(c)		0.02			(0.23	)		0.28
Total from Investment Operations		0.14			0.18			0.20			(0.07	)		0.49
LESS DISTRIBUTIONS FROM:
Net investment income		(0.20	)		(0.22	)		(0.27	)		(0.29	)		(0.32	)
Net realized capital gains		—			—			—			(0.00	)(b)		(0.00	)(b)
Paid-in capital		—			—			—			(0.00	)(b)		—
Total Distributions		(0.20	)		(0.22	)		(0.27	)		(0.29	)		(0.32	)
Net asset value, end of the period	$	11.55		$	11.61		$	11.65		$	11.72		$	12.08
Total return		1.19	%		1.51	%		1.70	%		(0.56	)%		4.19	%(d)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	411,898		$	431,727		$	330,224		$	252,127		$	220,444
Net expenses		0.52	%		0.52	%		0.55	%(e)		0.62	%(f)		0.60	%(g)
Gross expenses		0.52	%		0.52	%		0.55	%(e)		0.62	%(f)		0.65	%
Net investment income		1.20	%		1.45	%		1.58	%		1.35	%		1.77	%
Portfolio turnover rate		109	%(h)		48	%		24	%		39	%		56	%

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

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

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

(d) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

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

(f) Includes corporate tax expenses of 0.03%. Without this expense the ratio of net expenses would have been 0.59%.

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

(h) The variation in the Fund’s turnover rate from 2015 to 2016 was primarily due to fluctuation in the level of fund assets due to shareholder flows.

See accompanying notes to financial statements.

|  72

Notes to Financial Statements

September 30, 2016

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 Trust in multiple series. The financial statements for certain funds of the Trusts are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:

Loomis Sayles Funds I:

Loomis Sayles Intermediate Duration Bond Fund (the “Intermediate Duration Bond Fund”)

Loomis Sayles Funds II:

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

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

Each Fund is a diversified investment company.

The Funds each offer Class A, Class C and Class Y shares. Prior to August 31, 2016, Intermediate Duration Bond Fund offered Retail Class and Institutional Class shares. Effective August 31, 2016, Retail Class shares were redesignated as Class A shares and Institutional Class shares were redesignated as Class Y shares. In addition, the Fund began offering Class C shares. As of the close of business on January 11, 2016, Class B shares of High Income Fund and Limited Term Government and Agency Fund were converted into Class A shares and are no longer offered.

Class A shares of Intermediate Duration Bond Fund and High Income Fund are sold with a maximum front-end sales charge of 4.25% (4.50% prior to November 2, 2015 for High Income Fund). Class A shares of Limited Term Government and Agency Fund are sold with a maximum front-end sales charge of 2.25% (3.00% prior to November 2, 2015). Class C shares do not pay a front-end sales charge, do not convert to any other class of shares, pay higher Rule 12b-1 fees than Class A shares and may be subject to a CDSC of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class Y shares are generally intended for institutional investors with a minimum initial investment of $100,000, though some categories of investors are exempted from the minimum investment amount as outlined in the Funds’ prospectus.

Most expenses can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds 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

73  |

Notes to Financial Statements (continued)

September 30, 2016

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

2.  Significant Accounting Policies.  The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements follow the accounting and reporting guidelines provided for investment companies and are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions subsequent to year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.

a.  Valuation.  Fund securities and other investments are valued at market value based on market quotations obtained or determined by independent pricing services recommended by the adviser and approved by the Board of Trustees. Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees, as described below. Market value is determined as follows:

Debt securities and unlisted preferred equity securities are valued based on evaluated bids furnished to the Fund by an independent pricing service or bid prices obtained from broker-dealers. Senior loans are valued at bid prices supplied by an independent pricing service, if available. Listed equity securities (including shares of closed-end investment companies and exchange-traded funds) are valued at the last sale price quoted on the exchange where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. 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 an NOCP, at the most recent bid quotations on the applicable NASDAQ Market. Unlisted equity securities (except unlisted preferred equity securities) are valued at the last sale price quoted in the market where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. If there is no last sale price or closing bid quotation available, unlisted equity securities will be valued using evaluated bids furnished by an independent pricing service, if available. In some foreign markets, an official close price and a last sale price may be available from the foreign exchange

|  74

Notes to Financial Statements (continued)

September 30, 2016

or market. In those cases, the official close price is used. Broker-dealer bid prices may be used to value debt and unlisted equity securities and senior loans where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Forward foreign currency contracts are valued utilizing interpolated rates determined based on information provided by an independent pricing service. Futures contracts are valued at the most recent settlement price on the exchange on which the adviser believes that, over time, they are traded most extensively. Centrally cleared credit default swap agreements are valued at settlement prices of the clearinghouse on which the contracts were traded or prices obtained from broker-dealers. Bilateral credit default swaps are valued based on mid prices (between the bid price and the ask price) supplied by an independent pricing service.

Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees. The Funds may also value securities and other investments at fair value in other circumstances such as when extraordinary events occur after the close of a foreign market but prior to the close of the New York Stock Exchange (“NYSE”). This may include situations relating to a single issuer (such as a declaration of bankruptcy or a delisting of the issuer’s security from the primary market on which it has traded) as well as events affecting the securities markets in general (such as market disruptions or closings and significant fluctuations in U.S. and/or foreign markets). When fair valuing its securities or other investments, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities or other market activity and/or significant events that occur after the close of the foreign market and before the time the Fund’s net asset value (“NAV”) is calculated. Fair value pricing may require subjective determinations about the value of a security, and fair values used to determine a Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same securities. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities held by the Fund.

Illiquid securities for which market quotations are readily available and have been evaluated by the adviser are considered and classified as fair valued securities.

As of September 30, 2016, securities of the funds were fair valued as follows:

Fund	Securities classified as fair valued		Percentage of Net Assets			Securities fair valued by the Fund’s adviser		Percentage of Net Assets
High Income Fund	$	1,828,035		1.0	%	$	1,097,873		0.6	%
Intermediate Duration Bond Fund		—		—			23,756		Less than 0.1	%
Limited Term Government and Agency Fund		3,037,018		0.3	%		1,488,611		0.2	%

75  |

Notes to Financial Statements (continued)

September 30, 2016

b.  Investment Transactions and Related Investment Income.  Investment transactions are accounted for on a trade date plus one day basis for daily NAV calculation. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium, if applicable. Periodic principal adjustments for inflation-protected securities are recorded to interest income. Negative principal adjustments (in the event of deflation) are recorded as reductions of interest income to the extent of interest income earned, not to exceed the amount of positive principal adjustments on a cumulative basis. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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

Net realized foreign exchange gains or losses arise from sales of foreign currency, changes in exchange rates between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investment securities, as of the end of the fiscal period, resulting from changes in exchange rates. Net realized foreign exchange gains or losses and the net change in unrealized foreign exchange gains or losses are disclosed in the Statements of Operations. For federal income tax purposes, net realized foreign exchange gains or losses are characterized as ordinary income and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.

The values of investment securities are presented at the foreign exchange rates prevailing at the end of the period for financial reporting purposes. Net realized and unrealized gains or losses on investments reported in the Statements of Operations reflect gains or losses resulting from changes in exchange rates and fluctuations which arise due to changes in market prices of investment securities. For federal income tax purposes, a portion of the net realized gain or loss on investments arising from changes in exchange rates, which is reflected in the Statements of Operations,

|  76

Notes to Financial Statements (continued)

September 30, 2016

may be characterized as ordinary income and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.

For the year ended September 30, 2016, the amount of income available to be distributed by High Income Fund has been reduced by $2,868,074 as a result of losses arising from changes in exchange rates.

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

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

e.  Futures Contracts.  The Funds may enter into futures contracts. Futures contracts are agreements between two parties to buy and sell a particular instrument or index for a specified price on a specified future date.

When a Fund enters into a futures contract, it is required to deposit with (or for the benefit of) its broker an amount of cash or short-term high-quality securities as “initial margin.” As the value of the contract changes, the value of the futures contract position increases or declines. Subsequent payments, known as “variation margin,” are made or received by a Fund, depending on the price fluctuations in the fair value of the contract and the value of cash or securities on deposit with the broker. The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statements of Assets and Liabilities as an asset (liability) and in the Statements of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses). Realized gain or loss on a futures position is equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, minus brokerage commissions. When a Fund enters into a futures contract certain risks may arise, such as illiquidity in the futures market,

77  |

Notes to Financial Statements (continued)

September 30, 2016

which may limit a Fund’s ability to close out a futures contract prior to settlement date, and unanticipated movements in the value of securities or interest rates.

Futures contracts are exchange-traded. Exchange-traded futures contracts are standardized and are settled through a clearing house with fulfillment supported by the credit of the exchange. Therefore, counterparty credit risks to the Funds are reduced; however, in the event that a counterparty enters into bankruptcy, a Fund’s claim against initial/variation margin on deposit with the counterparty may be subject to terms of a final settlement in bankruptcy court.

f.  Swap Agreements.  The Funds may enter into credit default swaps. A credit default swap is an agreement between two parties (the “protection buyer” and “protection seller”) to exchange the credit risk of an issuer (“reference obligation”) for a specified time period. The reference obligation may be one or more debt securities or an index of such securities. The Funds may be either the protection buyer or the protection seller. As a protection buyer, the Funds have the ability to hedge the downside risk of an issuer or group of issuers. As a protection seller, the Funds have the ability to gain exposure to an issuer or group of issuers whose bonds are unavailable or in short supply in the cash bond market, as well as realize additional income in the form of fees paid by the protection buyer. The protection buyer is obligated to pay the protection seller a stream of payments (“fees”) over the term of the contract, provided that no credit event, such as a default or a downgrade in credit rating, occurs on the reference obligation. The Funds may also pay or receive upfront premiums. If a credit event occurs, the protection seller must pay the protection buyer the difference between the agreed upon notional value and market value of the reference obligation. Market value in this case is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the value. The maximum potential amount of undiscounted future payments that a Fund as the protection seller could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement.

The notional amounts of swap agreements are not recorded in the financial statements. Swap agreements are valued daily and fluctuations in the value are recorded in the Statements of Operations as change in unrealized appreciation (depreciation) on swap agreements. Fees are accrued in accordance with the terms of the agreement and are recorded in the Statement of Assets and Liabilities as fees receivable or payable. When received or paid, fees are recorded in the Statement of Operations as realized gain or loss. Upfront premiums paid or received by the Funds are recorded on the Statements of Assets and Liabilities as an asset or liability, respectively, and are amortized or accreted over the term of the agreement and recorded as realized gain or loss. Payments made or received by the Funds as a result of a credit event or termination of the agreement are recorded as realized gain or loss.

Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract or centrally cleared (“centrally cleared swaps”). Bilateral swap

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Notes to Financial Statements (continued)

September 30, 2016

agreements are traded between counterparties and, as such, are subject to the risk that a party to the agreement will not be able to meet its obligations. In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Fund faces the CCP through a broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Subsequent payments, known as “variation margin,” are made or received by the Fund based on the daily change in the value of the centrally cleared swap agreement. For centrally cleared swaps, the Fund’s counterparty credit risk is reduced as the CCP stands between the Fund and the counterparty. The Funds cover their net obligations under outstanding swap agreements by segregating or earmarking cash or securities.

No swap agreements were held by the Funds during the year ended September 30, 2016.

g.  When-Issued and Delayed Delivery Transactions.   The Funds may enter into when-issued or delayed delivery transactions. When-issued refers to transactions made conditionally because a security, although authorized, has not been issued. Delayed delivery refers to transactions for which delivery or payment will occur at a later date, beyond the normal settlement period. The price of when-issued and delayed delivery securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The security and the obligation to pay for it are recorded by the Funds at the time the commitment is entered into. The value of the security may vary with market fluctuations during the time before the Funds take delivery of the security. No interest accrues to the Funds until the transaction settles.

Delayed delivery transactions include those designated as To Be Announced (“TBAs”) in the Portfolios of Investments. For TBAs, the actual security that will be delivered to fulfill the transaction is not designated at the time of the trade. The security is “to be announced” 48 hours prior to the established trade settlement date. Certain transactions require the Funds or counterparty to post cash and/or securities as collateral for the net mark-to-market exposure to the other party. The Funds cover their net obligations under outstanding delayed delivery commitments by segregating or earmarking cash or securities at the custodian.

Purchases of when-issued or delayed delivery securities may have a similar effect on the Funds’ NAV as if the Funds’ had created a degree of leverage in the portfolio. Risks may arise upon entering into such transactions from the potential inability of counterparties to meet their obligations under the transactions. Additionally, losses may arise due to changes in the value of the underlying securities.

h.  Federal and Foreign Income Taxes.  The Trusts treat each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment

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income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of September 30, 2016 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

A Fund may be subject to foreign withholding taxes on investment income and taxes on capital gains on investments that are accrued and paid based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign withholding taxes on dividend and interest income are reflected on the Statements of Operations as a reduction of investment income, net of amounts eligible to be reclaimed. Dividends and interest receivable on the Statements of Assets and Liabilities are net of foreign withholding taxes. Foreign withholding taxes where reclaims have been or will be filed are reflected on the Statements of Assets and Liabilities as tax reclaims receivable. Capital gains taxes paid are included in net realized gain (loss) on investments in the Statements of Operations. Accrued but unpaid capital gains taxes are reflected as foreign taxes payable on the Statements of Assets and Liabilities, if applicable, and reduce unrealized gains on investments. In the event that realized gains on investments are subsequently offset by realized losses, taxes paid on realized gains may be returned to a Fund. Such amounts, if applicable, are reflected as foreign tax rebates receivable on the Statements of Assets and Liabilities and are recorded as a realized gain when received.

i.  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 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 of items such as foreign currency gains and losses, contingent payment debt instruments, basis tracking from corporate actions, premium amortization, defaulted and/or non-income producing securities, paydown gains and losses, return of capital distributions received, convertible bonds and distribution re-designations. 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, forward foreign currency contracts mark-to-market, basis tracking from corporate actions, contingent payment debt instruments, convertible bonds, defaulted and/or non-income producing securities and return of capital

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Notes to Financial Statements (continued)

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distributions received. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2016 and 2015 were as follows:

	2016 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
High Income Fund	$	6,619,464	$	396,248	$	7,015,712
Intermediate Duration Bond Fund		3,295,835		—		3,295,835
Limited Term Government and Agency Fund		13,653,659		—		13,653,659

	2015 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
High Income Fund	$	9,843,443	$	3,412,156	$	13,255,599
Intermediate Duration Bond Fund		2,124,550		—		2,124,550
Limited Term Government and Agency Fund		12,685,774		—		12,685,774

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, 2016, the components of distributable earnings on a tax basis were as follows:

	High Income Fund			Intermediate Duration Bond Fund		Limited Term Government and Agency Fund
Undistributed ordinary income	$	156,678		$	1,283,403	$	766,853
Capital loss carryforward:
Short-term:
No expiration date		(251,066	)		—		(848,283	)
Long-term:
No expiration date		(2,330,822	)		—		(11,847,451	)
Total capital loss carryforward		(2,581,888	)		—		(12,695,734	)
Unrealized appreciation (depreciation)		(3,172,250	)		1,012,166		(3,267,212	)
Total accumulated earnings (losses)	$	(5,597,460	)	$	2,295,569	$	(15,196,093	)

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As of September 30, 2016, unrealized appreciation (depreciation) on a tax basis was as follows:

	High Income Fund			Intermediate Duration Bond Fund		Limited Term Government and Agency Fund
Unrealized appreciation (depreciation)
Investments	$	(984,705	)	$	1,012,166	$	(3,267,212	)
Foreign currency translations		(2,187,545	)		—		—
Total unrealized appreciation (depreciation)	$	(3,172,250	)	$	1,012,166	$	(3,267,212	)

j.  Repurchase Agreements.  Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of September 30, 2016, each Fund, as applicable, had investments in repurchase agreements for which the value of the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.

k.  Due from Brokers.  Transactions and positions in certain forward foreign currency contracts are maintained and cleared by registered U.S. broker/dealers pursuant to customer agreements between the Funds and the various broker/dealers. The due from broker balance in the Statement of Assets and Liabilities for High Income Fund represents cash pledged as collateral for forward foreign currency contracts. In certain circumstances the Fund’s use of cash held at brokers is restricted by regulation or broker mandated limits.

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

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loaned securities for non-U.S. equities; and at least 100% of the market value (including accrued interest) of loaned securities for U.S. Government securities, sovereign debt issued by non-U.S. Governments and non-U.S. corporate debt. In the event that the market value of the collateral falls below the required percentages described above, the borrower will deliver additional collateral on the next business day. As with other extensions of credit, the Funds 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.

For the year ended September 30, 2016, none of the Funds had loaned securities under this agreement.

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

3.  Fair Value Measurements.  In accordance with accounting standards related to fair value measurements and disclosures, the Funds have categorized the inputs utilized in determining the value of each Fund’s assets or liabilities. These inputs are summarized in the three broad levels listed below:

• Level 1 – quoted prices in active markets for identical assets or liabilities;

• Level 2 – prices determined using other significant inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk, etc.); and

• Level 3 – prices determined using significant unobservable inputs when quoted prices or observable inputs are unavailable such as when there is little or no market activity for an asset or liability (unobservable inputs reflect each Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The Funds’ pricing policies and procedures are recommended by the adviser and approved by the Board of Trustees. Debt securities are valued based on evaluated bids furnished to the Funds by an independent pricing service. Broker-dealer bid prices may be used if an independent pricing service either is unable to price a security or does

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not provide a reliable price for a security. Broker-dealer bid prices for which the Funds do not have knowledge of the inputs used by the broker-dealer are categorized in Level 3. All security prices, including those obtained from an independent pricing service and broker-dealer bid prices, are reviewed on a daily basis by the adviser, subject to oversight by Fund management and the Board of Trustees. If the adviser, in good faith, believes that the price provided by an independent pricing service is unreliable, broker-dealer bid prices may be used until the price provided by the independent pricing service is considered to be reliable. Reliability of all security prices, including those obtained from an independent pricing service and broker-dealer bid prices, is tested in a variety of ways, including comparison to recent transaction prices and daily fluctuations, amongst other validation procedures in place. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ adviser pursuant to procedures approved by the Board of Trustees. Fair valued securities may be categorized in Level 3.

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2016, at value:

High Income Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
ABS Home Equity	$	—	$	3,251,090	$	98,704	(b)	$	3,349,794
Government Owned - No Guarantee		—		3,508,812		594,150	(c)		4,102,962
Home Construction		—		2,304,681		23	(b)		2,304,704
Non-Agency Commercial Mortgage-Backed Securities		—		2,555,459		908,874	(c)		3,464,333
All Other Non-Convertible Bonds(a)		—		136,438,387		—			136,438,387
Total Non-Convertible Bonds		—		148,058,429		1,601,751			149,660,180
Convertible Bonds(a)		—		5,681,081		—			5,681,081
Total Bonds and Notes		—		153,739,510		1,601,751			155,341,261
Senior Loans
Wirelines		—		1,205,599		150,561	(c)		1,356,160
All Other Senior Loans(a)		—		1,859,129		—			1,859,129
Total Senior Loans		—		3,064,728		150,561			3,215,289

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Notes to Financial Statements (continued)

September 30, 2016

High Income Fund (continued)

Asset Valuation Inputs (continued)

Description	Level 1		Level 2		Level 3			Total
Preferred Stocks
Convertible Preferred Stocks
Midstream	$	—	$	604,306	$	—		$	604,306
Pharmaceuticals		729,608		1,165,014		—			1,894,622
REITs - Mortgage		—		103,095		—			103,095
All Other Convertible Preferred Stocks(a)		811,876		—		—			811,876
Total Convertible Preferred Stocks		1,541,484		1,872,415		—			3,413,899
Non-Convertible Preferred Stocks(a)		510,774		—		—			510,774
Total Preferred Stocks		2,052,258		1,872,415		—			3,924,673
Other Investments(a)		—		—		985,586	(d)		985,586
Common Stocks
Internet Software & Services		—		—		8,177	(b)		8,177
All Other Common Stocks(a)		1,213,118		—		—			1,213,118
Total Common Stocks		1,213,118		—		8,177			1,221,295
Warrants(e)		349		—		5,383	(b)		5,732
Short-Term Investments		—		9,639,758		—			9,639,758
Total Investments		3,265,725		168,316,411		2,751,458			174,333,594
Forward Foreign Currency Contracts (unrealized appreciation)		—		233		—			233
Total	$	3,265,725	$	168,316,644	$	2,751,458		$	174,333,827

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

(b) Fair valued by the Fund’s adviser.

(c) Valued using broker-dealer bid prices.

(d) Fair valued by the Fund’s adviser using broker-dealer bid prices for which the inputs are unobservable to the Fund.

(e) Includes a security fair valued at zero using Level 2 inputs.

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September 30, 2016

Intermediate Duration Bond Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	—	$	11,162,715	$	439,742	(b)	$	11,602,457
ABS Home Equity		—		1,949,177		23,756	(c)		1,972,933
All Other Non-Convertible Bonds(a)		—		141,767,274		—			141,767,274
Total Non-Convertible Bonds		—		154,879,166		463,498			155,342,664
Municipals(a)		—		276,326		—			276,326
Total Bonds and Notes		—		155,155,492		463,498			155,618,990
Short-Term Investments		—		6,065,192		—			6,065,192
Total	$	—	$	161,220,684	$	463,498		$	161,684,182

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

(b) Valued using broker-dealer bid prices.

(c) Fair valued by the Fund’s adviser.

For the year ended September 30, 2016 there were no transfers among Levels 1, 2 and 3.

Limited Term Government and Agency Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
ABS Student Loan	$	—	$	—	$	400,000	(b)	$	400,000
Agency Commercial Mortgage-Backed Securities		—		150,152,212		11,781,022	(b)		161,933,234
Collateralized Mortgage Obligations		—		132,419,280		1,488,611	(c)		133,907,891
Non-Agency Commercial Mortgage-Backed Securities		—		51,293,185		3,037,018	(b)		54,330,203
All Other Bonds and Notes(a)		—		559,256,816		—			559,256,816
Total Bonds and Notes		—		893,121,493		16,706,651			909,828,144
Short-Term Investments		—		19,857,087		—			19,857,087
Total	$	—	$	912,978,580	$	16,706,651		$	929,685,231

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

(b) Valued using broker-dealer bid prices.

(c) Fair valued by the Fund’s adviser.

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September 30, 2016

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of September 30, 2015 and/or September 30, 2016:

High Income Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2015		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Home Equity	$	—	$	—	$	9,906	$	(5,788	)	$	—
ABS Other		750,966		—		—		—			—
Government Owned - No Guarantee		—		—		—		84,150			510,000
Home Construction		—		27,009		—		(95,096	)		—
Non-Agency Commercial Mortgage-Backed Securities		935,000		—		—		(26,126	)		—
Senior Loans
Wirelines		—		128		—		(7,763	)		—
Other Investments
Aircraft ABS		1,000,000		—		—		(14,414	)		—
Common Stocks
Internet Software & Services		—		—		—		(11,863	)		20,040
Warrants		—		—		—		5,383			—
Total	$	2,685,966	$	27,137	$	9,906	$	(71,517	)	$	530,040

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High Income Fund (continued)

Asset Valuation Inputs (continued)

Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2016		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2016
Bonds and Notes
Non-Convertible Bonds
ABS Home Equity	$	(44,737	)	$	139,323	$	—		$	98,704	$	(5,788	)
ABS Other		—			—		(750,966	)		—		—
Government Owned - No Guarantee		—			—		—			594,150		84,150
Home Construction		—			68,110		—			23		(95,096	)
Non-Agency Commercial Mortgage-Backed Securities		—			—		—			908,874		(26,126	)
Senior Loans
Wirelines		—			158,196		—			150,561		(7,763	)
Other Investments
Aircraft ABS		—			—		—			985,586		(14,414	)
Common Stocks
Internet Software & Services		—			—		—			8,177		(11,863	)
Warrants		—			—		—			5,383		5,383
Total	$	(44,737	)	$	365,629	$	(750,966	)	$	2,751,458	$	(71,517	)

Debt securities valued at $207,433 were transferred from Level 2 to Level 3 during the period ended September 30, 2016. At September 30, 2015, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2016, these securities were valued at fair value as determined in good faith by the Fund’s adviser as an independent pricing service did not provide a reliable price for the securities.

Debt securities valued at $750,966 were transferred from Level 3 to Level 2 during the period ended September 30, 2016. At September 30, 2015, these securities were valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the securities. At September 30, 2016,

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September 30, 2016

these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

A debt security valued at $158,196 was transferred from Level 2 to Level 3 during the period ended September 30, 2016. At September 30, 2015, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2016, this security was valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service did not provide a reliable price for the security.

All transfers are recognized as of the beginning of the reporting period.

Intermediate Duration Bond

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2015			Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	—		$	—	$	—	$	(184	)	$	439,926
ABS Home Equity		35,366			—		2,597		(1,314	)		—
Total	$	35,366		$	—	$	2,597	$	(1,498	)	$	439,926
Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3		Balance as of September 30, 2016			Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2016
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	—		$	—	$	—	$	439,742		$	(184	)
ABS Home Equity		(12,893	)		—		—		23,756			(1,628	)
Total	$	(12,893	)	$	—	$	—	$	463,498		$	(1,812	)

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Limited Term Government and Agency Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2015			Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Student Loan	$	—		$	—	$	—		$	—		$	400,000
Agency Commercial Mortgage-Backed Securities		14,113,679			—		(341,631	)		(93,072	)		—
Collateralized Mortgage Obligations		20,837			—		(149,996	)		42,763			—
Non-Agency Commercial Mortgage-Backed Securities		3,037,972			—		—			(954	)		—
Total	$	17,172,488		$	—	$	(491,627	)	$	(51,263	)	$	400,000
Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2016			Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2016
Bonds and Notes
Non-Convertible Bonds
ABS Student Loan	$	—		$	—	$	—		$	400,000		$	—
Agency Commercial Mortgage-Backed Securities		(1,897,954	)		—		—			11,781,022			(312,513	)
Collateralized Mortgage Obligations		(2,485,345	)		4,060,352		—			1,488,611			42,766
Non-Agency Commercial Mortgage-Backed Securities		—			—		—			3,037,018			(954	)
Total	$	(4,383,299	)	$	4,060,352	$	—		$	16,706,651		$	(270,701	)

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September 30, 2016

Debt securities valued at $4,060,352 were transferred from Level 2 to Level 3 during the period ended September 30, 2016. At September 30, 2015, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2016, these securities were valued at fair value as determined in good faith by the Fund’s adviser as an independent pricing service did not provide a reliable price for the securities.

All transfers are recognized as of the beginning of the reporting period.

4.  Derivatives.  Derivative instruments are defined as financial instruments whose value and performance are based on the value and performance of an underlying asset, reference rate or index. Derivative instruments that High Income Fund used during the period include forward foreign currency contracts and futures contracts.

High Income Fund is subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. The Fund may enter into forward foreign currency contracts for hedging purposes to protect the value of the Fund’s holdings of foreign securities. The Fund may also use forward foreign currency contracts to gain exposure to foreign currencies, regardless of whether securities denominated in such currencies are held in the Fund. During the year ended September 30, 2016, High Income Fund engaged in forward foreign currency transactions for hedging purposes.

High Income Fund is subject to the risk that changes in interest rates will affect the value of the Fund’s investments in fixed-income securities. A Fund will be subject to increased interest rate risk to the extent that it invests in fixed-income securities with longer maturities or durations, as compared to investing in fixed-income securities with shorter maturities or durations. The Fund may use futures contracts to hedge against changes in interest rates and to manage its duration without having to buy or sell portfolio securities. During the year ended September 30, 2016, High Income Fund used futures contracts to manage duration.

The following is a summary of derivative instruments for High Income Fund as of September 30, 2016, as reflected within the Statements of Assets and Liabilities:

Assets	Unrealized appreciation on forward foreign currency contracts
Over-the-counter liability derivatives
Foreign exchange contracts	$	233

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Transactions in derivative instruments for High Income Fund during the year ended September 30, 2016, as reflected within the Statements of Operations, were as follows:

Net Realized Gain (Loss) on:	Futures contracts			Foreign currency transactions1
Interest rate contracts	$	(176,542	)	$	—
Foreign exchange contracts		—			281,234
Total	$	(176,542	)	$	281,234
Net Change in Unrealized Appreciation (Depreciation) on:	Futures contracts			Foreign currency translations1
Interest rate contracts	$	160,868		$	—
Foreign exchange contracts		—			(263,174	)
Total	$	160,868		$	(263,174	)

¹  Represents realized gain and change in unrealized appreciation (depreciation), respectively, for forward foreign currency contracts during the period. Does not include other foreign currency gains or losses included in the Statements of Operations.

As the Funds value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting under authoritative guidance for derivative instruments. The Funds’ investments in derivatives may represent an economic hedge; however, they are considered to be non-hedge transactions for the purpose of these disclosures.

The volume of forward foreign currency contract and futures contract activity, as a percentage of net assets, based on gross month-end notional amounts outstanding during the period, including long and short positions at absolute value, was as follows for the year ended September 30, 2016:

High Income Fund	Forwards			Futures
Average Notional Amount Outstanding		1.18	%		2.28	%
Highest Notional Amount Outstanding		2.03	%		7.49	%
Lowest Notional Amount Outstanding		0.11	%		0.00	%
Notional Amount Outstanding as of September 30, 2016		0.11	%		0.00	%

Notional amounts outstanding at the end of the prior period are included in the average notional amount outstanding.

Unrealized gain and/or loss on open forwards and futures is recorded in the Statements of Assets and Liabilities. The aggregate notional values of forward and futures contracts are not recorded in the Statements of Assets and Liabilities, and therefore are not included in the Funds’ net assets.

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Over-the-counter derivatives, including forward foreign currency contracts, are entered into pursuant to International Swaps and Derivatives Association, Inc. (“ISDA”) agreements negotiated between the Funds and their counterparties. ISDA agreements typically contain, among other things, terms for the posting of collateral and master netting provisions in the event of a default or other termination event. Collateral is posted by a Fund or the counterparty to the extent of the net mark-to-market exposure to the other party of all open contracts under the agreement, subject to minimum transfer requirements. Master netting provisions allow the Funds and the counterparty, in the event of a default or other termination event, to offset amounts owed by each related to derivative contracts, including any posted collateral, to one net amount payable by either the Funds or the counterparty. The Funds’ ISDA agreements typically contain provisions that allow a counterparty to terminate open contracts early if the NAV of a Fund declines beyond a certain threshold. For financial reporting purposes, the Funds do not offset derivative assets and liabilities, and any related collateral received or pledged, on the Statements of Assets and Liabilities.

As of September 30, 2016, gross amounts of over-the-counter derivative assets and liabilities not offset in the Statements of Assets and Liabilities and the related net amounts after taking into account master netting arrangements by counterparty, are as follows:

High Income Fund

Counterparty	Gross Amounts of Assets		Offset Amount		Net Asset Balance		Collateral (Received)/ Pledged		Net Amount
Bank of America, N.A.	$	233	$	—	$	233	$	—	$	233

The actual collateral received or pledged, if any, may exceed the amounts shown in the table due to overcollateralization. Timing differences may exist between when contracts under the ISDA agreements are marked-to-market and when collateral moves. The ISDA agreements include tri-party control agreements under which collateral is held for the benefit of the secured party at a third party custodian, State Street Bank.

Counterparty risk is managed based on policies and procedures established by each Fund’s adviser. Such policies and procedures may include, but are not limited to, minimum counterparty credit rating requirements, monitoring of counterparty credit default swap spreads and posting of collateral. A Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the Fund’s aggregated unrealized gains and the amount of any collateral pledged to the counterparty, which may be offset by any collateral posted to the Fund by the counterparty. ISDA master agreements can help to manage counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under these ISDA agreements,

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collateral is routinely transferred if the total net exposure in respect of certain transactions, net of existing collateral already in place, exceeds a specified amount (typically $250,000, depending on the counterparty). With exchange-traded derivatives, there is minimal counterparty credit risk to the Fund because the exchange’s clearinghouse, as counterparty to these instruments, stands between the buyer and the seller of the contract. Credit risk still exists in exchange-traded derivatives with respect to initial and variation margin that is held in a broker’s customer accounts. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro rata basis across all of the broker’s customers, potentially resulting in losses to the Fund. Based on balances reflected on each Fund’s Statement of Assets and Liabilities, the following table shows (i) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the applicable Fund would incur if parties (including OTC derivative counterparties and brokers holding margin for exchange-traded derivatives) to the relevant financial instruments failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the Fund, and (ii) the amount of loss that the applicable Fund would incur after taking into account master netting provisions pursuant to ISDA agreements, as of September 30, 2016:

Fund	Maximum Amount of Loss - Gross		Maximum Amount of Loss - Net
High Income Fund	$	7,233	$	7,233

5.  Purchases and Sales of Securities.  For the year ended September 30, 2016, purchases and sales of securities (excluding short-term investments and including paydowns) were as follows:

	U.S. Government/ Agency Securities				Other Securities
Fund	Purchases		Sales		Purchases		Sales
High Income Fund	$	9,985,547	$	13,851,481	$	49,568,649	$	52,338,522
Intermediate Duration Bond Fund		77,188,897		51,415,612		177,222,785		142,480,422
Limited Term Government and Agency Fund		919,322,168		900,410,968		140,894,958		67,739,496

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6.  Management Fees and Other Transactions with Affiliates.

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

	Percentage of Average Daily Net Assets
Fund	First $100 million			Next $400 million			Next $1.5 billion			Over $2 billion
High Income Fund		0.6000	%		0.6000	%		0.6000	%		0.6000	%
Intermediate Duration Bond Fund		0.2500	%		0.2500	%		0.2500	%		0.2500	%
Limited Term Government and Agency Fund		0.3750	%		0.3750	%		0.3500	%		0.3000	%

Loomis Sayles has given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until January 31, 2017 (January 31, 2018 for Intermediate Duration Bond Fund), may be terminated before then only with the consent of the Funds’ Board of Trustees, and are reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.

For the year ended September 30, 2016 (period ending close of business January 11, 2016, for Class B) 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
High Income Fund		1.10	%		1.85	%		1.85	%		0.85	%
Intermediate Duration Bond Fund		0.65	%		—			1.40	%		0.40	%
Limited Term Government and Agency Fund		0.80	%		1.55	%		1.55	%		0.55	%

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

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For the year ended September 30, 2016, the management fees and waivers of management fees for each Fund were as follows:

	Gross Management Fees		Waivers of Management Fees1		Net Management Fees		Percentage of Average Daily Net Assets
Fund							Gross			Net
High Income Fund	$	971,664	$	67,553	$	904,111		0.600	%		0.558	%
Intermediate Duration Bond Fund		330,657		96,550		234,107		0.250	%		0.177	%
Limited Term Government and Agency Fund		3,309,940		—		3,309,940		0.364	%		0.364	%

¹  Management fee waivers are subject to possible recovery until September 30, 2017.

No expenses were recovered for any of the Funds during the year ended September 30, 2016 under the terms of the expense limitation agreements.

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

Pursuant to Rule 12b-1 under the 1940 Act, the Trusts have adopted a Service Plan relating to each Fund’s Class A shares (the “Class A Plans”) (effective August 31, 2016 for Intermediate Duration Bond Fund), 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 NGAM Distribution a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Class A shares, as reimbursement for expenses incurred by NGAM Distribution 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 (or paid) NGAM Distribution a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Class B and Class C shares, as compensation for services provided by NGAM Distribution 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 (or paid) NGAM Distribution a monthly distribution fee at the annual rate of 0.75% of the average daily net assets

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Notes to Financial Statements (continued)

September 30, 2016

attributable to the Fund’s Class B and Class C shares, as compensation for services provided by NGAM Distribution in connection with the marketing or sale of Class B and Class C shares.

For the year ended September 30, 2016, the service and distribution fees for each Fund were as follows:

	Service Fees							Distribution Fees
Fund	Class A		Class B		Class C			Class B		Class C
High Income Fund	$	85,726	$	1	$	29,545		$	2	$	88,636
Intermediate Duration Bond Fund		4,001		—		—	(a)		—		1
Limited Term Government and Agency Fund		1,002,251		1,734		193,399			5,201		580,197

(a) Less than $1.

Prior to August 31, 2016, pursuant to Rule 12b-1 under the 1940 Act, Intermediate Duration Bond Fund had adopted a Distribution Plan relating to the Fund’s Retail Class shares (the “Retail Class Plan”). Under the Retail Class Plan, the Fund paid NGAM Distribution 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 shares, as compensation for services provided by NGAM Distribution in connection with the marketing or sale of Retail Class shares or for payments made by NGAM Distribution to securities dealers or other financial intermediaries as commissions, asset-based sales charges or other compensation with respect to the sale of Retail Class shares, or for providing personal services to investors and/or the maintenance of shareholder accounts.

For the period ended August 31, 2016, Retail Class shares of Intermediate Duration Bond Fund paid $44,480 in distribution fees.

c.  Administrative Fees.  NGAM Advisors, L.P. (“NGAM Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. NGAM Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts and NGAM Advisors, each Fund pays NGAM 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 and Loomis Sayles Funds Trusts, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0350% of the next $30 billion and 0.0325% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts and Loomis Sayles Funds Trusts of $10 million, which is reevaluated on an annual basis.

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For the year ended September 30, 2016, the administrative fees for each Fund were as follows:

Fund	Administrative Fees
High Income Fund	$	71,381
Intermediate Duration Bond Fund		58,358
Limited Term Government and Agency Fund		401,349

d.  Sub-Transfer Agent Fees.  NGAM Distribution has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Funds and has agreed to compensate the intermediaries for providing those services. Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. These services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly at the Funds’ transfer agent. Accordingly, the Funds have agreed to reimburse NGAM Distribution for all or a portion of the servicing fees paid to these intermediaries. The reimbursement amounts (sub-transfer agent fees) paid to NGAM Distribution are subject to a current per-account equivalent fee limit approved by the Funds’ Board of Trustees, which is based on fees for similar services paid to the Funds’ transfer agent and other service providers.

For the year ended September 30, 2016, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:

Fund	Sub-Transfer Agent Fees
High Income Fund	$	166,948
Intermediate Duration Bond Fund		37,313
Limited Term Government and Agency Fund		403,560

As of September 30, 2016, the Funds owe NGAM Distribution the following reimbursements for sub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as payable to distributor):

Fund	Reimbursements of Sub-Transfer Agent Fees
High Income Fund	$	2,170
Intermediate Duration Bond Fund		670
Limited Term Government and Agency Fund		5,346

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September 30, 2016

e.  Commissions.  Commissions (including CDSCs) on Fund shares retained by NGAM Distribution during the year ended September 30, 2016 were as follows:

Fund	Commissions
High Income Fund	$	2,704
Limited Term Government and Agency Fund		49,660

f.  Trustees Fees and Expenses.  The Trusts do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of NGAM Advisors, NGAM Distribution, Natixis US or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $325,000. 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 $155,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, the chairperson of the Contract Review Committee and the chairperson of the Audit Committee each receive an additional retainer fee at the annual rate of $17,500. The chairperson of the Governance Committee receives an additional retainer fee at the annual rate of $10,000. Each Contract Review Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts and Loomis Sayles Funds Trusts based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2016, the Chairperson of the Board received a retainer fee at the annual rate of $300,000 and each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $130,000. The chairperson of the Governance Committee received an additional retainer fee at the annual rate of $5,000. All other Trustee fees remained unchanged.

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 and Loomis Sayles Funds Trusts as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts and Loomis Sayles Funds Trusts, and are normally reflected as Trustees’ fees and expenses

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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.  Affiliated Ownership.  As of September 30, 2016, Natixis US held shares of Intermediate Duration Bond Fund representing less than 0.01% of the Fund’s net assets. Loomis Sayles Employees’ Profit Sharing Retirement Plan (“Retirement Plan”) held shares of the Funds representing the following percentages of the Fund’s net assets:

Fund	Retirement Plan
Intermediate Duration Bond Fund		0.76	%
Limited Term Government and Agency Fund		0.49	%

Investment activities of affiliated shareholders could have material impacts on the Funds.

h.  Payment by Affiliates.  For the year ended September 30, 2016, Loomis Sayles reimbursed High Income Fund $2,130 in connection with a trading error.

7.  Line of Credit.  Effective April 14, 2016, each Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, entered into a 364-day, $400,000,000 syndicated, committed, unsecured line of credit with Citibank, N.A. to be used for temporary or emergency purposes only. Any one Fund may borrow up to the full $400,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate do not exceed the $400,000,000 limit at any time), subject to each Fund’s investment restrictions. Interest is charged to the Funds at a rate equal to the greater of the eurodollar or the federal funds rate plus 1.00%. In addition, a commitment fee of 0.10% per annum, payable on the last business day of each month, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit. The Funds paid an arrangement fee, an upfront fee, and other fees in connection with the new line of credit agreement, which are being amortized over a period of 364 days and are reflected as miscellaneous expenses on the Statements of Operations. The unamortized balance is reflected as prepaid expenses on the Statements of Assets and Liabilities.

Prior to April 14, 2016 each Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, participated in a $150,000,000 committed unsecured line of credit provided by State Street Bank. Any one Fund was able to borrow up to the full $150,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate do not exceed the $150,000,000 limit at any time). Interest was charged to each participating Fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

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For the year ended September 30, 2016, none of the Funds had borrowings under these agreements.

8.  Concentration of Risk.   Limited Term Government and Agency Fund’s investments in mortgage-related and asset-backed securities are subject to certain risks not associated with investments in other securities. Mortgage-related and asset-backed securities are subject to the risk that unexpected changes in interest rates will have a direct effect on expected maturity. A shortened maturity may result in the reinvestment of prepaid amounts in securities with lower yields than the original obligations. An extended maturity may result in a reduction of a security’s value.

Each Fund’s investments in foreign securities are subject to foreign currency fluctuations, higher volatility than U.S. securities, varying degrees of regulation and limited liquidity. Greater political, economic, credit and information risks are also associated with foreign securities.

9.  Concentration of Ownership.  From time to time, a Fund may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of such accounts could have material impacts on the Funds. As of September 30, 2016, based on management’s evaluation of the shareholder account base, the Funds had accounts representing controlling ownership of more than 5% of the Fund’s total outstanding shares. The number of such accounts, based on accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings were as follows:

Fund	Number of 5% Account Holders		Percentage of Ownership
High Income Fund		2		19.34	%
Intermediate Duration Bond Fund		5		44.13	%

Omnibus shareholder accounts for which NGAM Advisors understands that the intermediary has discretion over the underlying shareholder accounts or investment models where a shareholder account may be invested for a non-discretionary customer are included in the table above. For other omnibus accounts, the Funds do not have information on the individual shareholder accounts underlying the omnibus accounts; therefore, there could be other 5% shareholders in addition to those disclosed in the table above.

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

	Year Ended September 30, 2016					Year Ended September 30, 2015
High Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	5,509,748		$	22,242,447		7,165,895		$	31,113,644
Issued in connection with the reinvestment of distributions	299,177			1,169,586		580,589			2,471,372
Redeemed	(7,071,447	)		(28,018,252	)	(7,757,369	)		(33,308,895	)
Net change	(1,262,522	)	$	(4,606,219	)	(10,885	)	$	276,121
Class B(a)
Issued in connection with the reinvestment of distributions	4			17		790			3,364
Redeemed	(623	)		(2,485	)	(27,193	)		(117,824	)
Net change	(619	)	$	(2,468	)	(26,403	)	$	(114,460	)
Class C
Issued from the sale of shares	799,861		$	3,141,922		649,877		$	2,832,749
Issued in connection with the reinvestment of distributions	88,851			345,998		166,683			709,594
Redeemed	(1,144,474	)		(4,485,915	)	(900,836	)		(3,893,227	)
Net change	(255,762	)	$	(997,995	)	(84,276	)	$	(350,884	)
Class Y
Issued from the sale of shares	14,901,804		$	58,204,609		28,556,251		$	124,963,285
Issued in connection with the reinvestment of distributions	1,041,928			4,056,961		1,781,224			7,571,272
Redeemed	(14,689,863	)		(57,325,101	)	(28,942,559	)		(125,371,469	)
Net change	1,253,869		$	4,936,469		1,394,916		$	7,163,088
Increase (decrease) from capital share transactions	(265,034	)	$	(670,213	)	1,273,352		$	6,973,865

(a) On January 11, 2016, Class B shares were converted into Class A shares. See Note 1 of Notes to Financial Statements.

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10.  Capital Shares (continued).

	Year Ended September 30, 2016					Year Ended September 30, 2015
Intermediate Duration Bond Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	525,035		$	5,443,679		1,537,057		$	16,023,946
Issued in connection with the reinvestment of distributions	43,720			453,187		18,774			195,640
Redeemed	(505,357	)		(5,247,036	)	(353,439	)		(3,689,833	)
Net change	63,398		$	649,830		1,202,392		$	12,529,753
Class C*
Issued from the sale of shares	293,283		$	3,088,274		—		$	—
Issued in connection with the reinvestment of distributions	—	(a)		1		—			—
Net change	293,283		$	3,088,275		—		$	—
Class Y
Issued from the sale of shares	7,746,460		$	80,334,377		4,218,161		$	44,085,723
Issued in connection with the reinvestment of distributions	231,356			2,401,500		164,768			1,719,664
Redeemed	(1,681,603	)		(17,455,864	)	(2,280,808	)		(23,952,128	)
Redeemed in-kind (Note 11)	(1,574,765	)		(16,409,056	)	—			—
Net change	4,721,448		$	48,870,957		2,102,121		$	21,853,259
Increase (decrease) from capital share transactions	5,078,129		$	52,609,062		3,304,513		$	34,383,012

* From commencement of Class operations on August 31, 2016 through September 30, 2016.

(a) Amount rounds to less than one share.

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Notes to Financial Statements (continued)

September 30, 2016

10.  Capital Shares (continued).

	Year Ended September 30, 2016					Year Ended September 30, 2015
Limited Term Government and Agency Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	23,688,131		$	272,639,541		9,649,293		$	111,950,383
Issued in connection with the reinvestment of distributions	418,361			4,816,572		375,777			4,361,038
Redeemed	(15,575,978	)		(179,339,659	)	(7,161,541	)		(83,105,890	)
Net change	8,530,514		$	98,116,454		2,863,529		$	33,205,531
Class B(a)
Issued from the sale of shares	1,448		$	16,709		4,412		$	51,055
Issued in connection with the reinvestment of distributions	426			4,887		2,463			28,567
Redeemed	(230,595	)		(2,644,555	)	(140,481	)		(1,628,030	)
Net change	(228,721	)	$	(2,622,959	)	(133,606	)	$	(1,548,408	)
Class C
Issued from the sale of shares	4,330,687		$	49,825,855		2,240,435		$	26,003,916
Issued in connection with the reinvestment of distributions	29,632			341,361		27,082			314,602
Redeemed	(3,475,708	)		(40,028,796	)	(1,711,009	)		(19,866,952	)
Net change	884,611		$	10,138,420		556,508		$	6,451,566
Class Y
Issued from the sale of shares	22,122,240		$	255,439,801		24,653,312		$	286,964,981
Issued in connection with the reinvestment of distributions	391,770			4,524,155		339,019			3,946,537
Redeemed	(24,037,266	)		(277,502,192	)	(16,140,773	)		(187,902,947	)
Net change	(1,523,256	)	$	(17,538,236	)	8,851,558		$	103,008,571
Increase (decrease) from capital share transactions	7,663,148		$	88,093,679		12,137,989		$	141,117,260

(a) On January 11, 2016, Class B shares were converted into Class A shares. See Note 1 of Notes to Financial Statements.

11.  Redemption In-Kind.  In certain circumstances, a Fund may distribute portfolio securities rather than cash as payment for redemption of Fund shares (redemption in-kind). For financial reporting purposes, the Fund will recognize a gain on in-kind redemptions to the extent the value of the distributed securities on the date of redemption exceeds the cost of those securities; the Fund will recognize a loss if the cost exceeds value. Gains and losses realized on redemptions in-kind are not recognized for tax purposes, and are re-classified from realized gain (loss) to paid-in-capital. The Intermediate Duration Bond Fund realized a loss of $16,464 on redemptions in-kind during the year ended September 30, 2016. This amount is included in realized gain (loss) on the Statements of Operations.

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Notes to Financial Statements (continued)

September 30, 2016

12.  Subsequent Event.  Effective November 30, 2016, High Income Fund will begin offering Class N shares to investors. Class N shares are offered with no initial minimum investment to certain retirement plans held in an omnibus fashion and fund of funds that are distributed by NGAM Distribution and with an initial minimum investment of $1,000,000 to other categories of investors.

105  |

Report of Independent Registered Public

Accounting Firm

To the Trustees of Loomis Sayles Funds Trust I and Loomis Sayles Funds Trust II and Shareholders of Loomis Sayles Intermediate Duration Fixed Income Fund, Loomis Sayles High Income Fund and Loomis Sayles Limited Term Government and Agency 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 Intermediate Duration Fixed Income Fund, a series of Loomis Sayles Funds Trust I, and Loomis Sayles High Income Fund and Loomis Sayles Limited Term Government and Agency Fund, each a series of Loomis Sayles Funds Trust II (collectively, the “Funds”) at September 30, 2016, 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 audit 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, 2016 by correspondence with the custodian, agent banks and brokers, provide a reasonable basis for our opinion expressed above.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2016

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2016 U.S. Tax Distribution Information To Shareholders (Unaudited)

Corporate Dividends Received Deduction.  For the fiscal year ended September 30, 2016, a percentage of dividends distributed by the Fund listed below qualifies for the dividends received deduction for corporate shareholders. This percentage is as follows:

Fund	Qualifying Percentage
High Income		2.39	%

Capital Gains Distributions.  Pursuant to Internal Revenue Section 852(b), the following Fund paid distributions, which have been designated as capital gains distributions for the fiscal year ended September 30, 2016, unless subsequently determined to be different.

Fund	Amount
High Income	$	396,248

Qualified Dividend Income.  For the fiscal year ended September 30, 2016, the Fund below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Fund pays a distribution during calendar year 2016, complete information will be reported in conjunction with Form 1099-DIV.

Fund

High Income

107  |

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 Funds’ Statement(s) of Additional Information include additional information about the trustees of the Trusts and are available by calling Natixis Funds at 800-225-5478.

Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES
Kenneth A. Drucker (1945)	Trustee since 2008 Chairperson of the Audit Committee and Governance Committee Member	Retired	44 None	Significant experience on the Board and on the boards of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)
Edmond J. English (1953)	Trustee since 2013 Audit Committee Member	Chief Executive Officer of Bob’s Discount Furniture (retail)	44 Director, Burlington Stores, Inc. (retail); Formerly, Director, BJ’s Wholesale Club (retail)	Experience on the Board and significant experience on the boards of other business organizations (including retail companies and a bank); executive experience (including at a retail company)

|  108

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
Richard A. Goglia (1951)	Trustee since 2015 Audit Committee Member	Retired; formerly Vice President and Treasurer of Raytheon Company (defense)	44 None	Experience on the Board and executive experience (including his role as vice president and treasurer of a defense company and experience at a financial services company)
Wendell J. Knox (1948)	Trustee since 2009 Contract Review Committee Member and Governance Committee Member	Director of Abt Associates Inc. (research and consulting)	44 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the boards of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

109  |

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
Martin T. Meehan (1956)	Trustee since 2012 Contract Review Committee Member	President, University of Massachusetts; formerly, Chancellor and faculty member, University of Massachusetts Lowell	44 None	Experience on the Board and on the boards of other business organizations; experience as President of the University of Massachusetts; government experience (including as a member of the U.S. House of Representatives); academic experience
Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee since 2003 Ex Officio member of the Audit Committee, the Contract Review Committee and the Governance Committee	President, Strategic Advisory Services (management consulting)	44 Formerly, Director, AES Corporation (international power company); formerly, Director, Verizon Communications (telecommunications company)	Significant experience on the Board and on the boards of other business organizations (including at a telecommunications company, an international power company and a specialty chemicals corporation); executive experience (including at a management consulting company)

|  110

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
James P. Palermo (1955)	Trustee since 2016 Contract Review Committee Member	Founding Partner, Breton Capital Management, LLC (private equity); formerly, Chief Executive Officer of Global Client Management of The Bank of New York Mellon Corporation	44 None	Experience on the Board; financial services industry and executive experience (including roles as chief executive officer of client management and asset servicing for a banking and financial services company)
Erik R. Sirri (1958)	Trustee since 2009 Audit Committee Member	Professor of Finance at Babson College	44 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist
Peter J. Smail (1952)	Trustee since 2009 Chairperson of the Contract Review Committee and Governance Committee Member	Retired	44 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

111  |

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
Cynthia L. Walker (1956)	Trustee since 2005 Chairperson of the Governance Committee and Contract Review Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine	44 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)
INTERESTED TRUSTEES
Kevin P. Charleston3 (1965) One Financial Center Boston, MA 02111	Trustee since 2015 President and Chief Executive Officer of Loomis Sayles Funds I since 2015	President, Chief Executive Officer and Director; formerly, Chief Financial Officer, Loomis, Sayles & Company, L.P.	44 None	Experience on the Board; continuing service as President, Chief Executive Officer and Director of Loomis, Sayles & Company, L.P.
David L. Giunta4 (1965)	Trustee since 2011 President since 2008 and Chief Executive Officer since 2015 of Loomis Sayles Funds II and Executive Vice President of Loomis Sayles Funds I since 2008	President and Chief Executive Officer, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.	44 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer of NGAM Advisors, L.P.

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Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INTERESTED TRUSTEES continued
John T. Hailer5 (1960)	Trustee since 2003	President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.	44 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

¹ Each trustee serves until retirement, resignation or removal from the Board. The current retirement age is 75. The position of Chairperson of the Board is appointed for a three-year term. Ms. Moose was appointed to serve an additional three-year term as the Chairperson of the Board on December 13, 2013.

² The trustees of the Trusts serve as trustees of a fund complex that includes all series of the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV and Gateway Trust (collectively, the “Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (collectively, the “Loomis Sayles Funds Trusts”) and Natixis ETF Trust (collectively, the “Fund Complex”).

³ Mr. Charleston is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President and Chief Executive Officer of Loomis, Sayles & Company, L.P.

⁴ Mr. Giunta is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President and Chief Executive Officer of NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

⁵ Mr. Hailer is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

113  |

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trusts	Term of Office1 and Length of Time Served	Principal Occupation(s) During Past 5 Years2
OFFICERS OF THE TRUST
Daniel J. Fuss (1933) One Financial Center Boston, MA 02111	Executive Vice President of Loomis Sayles Funds I and Loomis Sayles Funds II	Since June 2003	Vice Chairman and Director, Loomis, Sayles & Company, L.P.
Russell L. Kane (1969)	Secretary, Clerk and Chief Legal Officer	Since July 2016	Executive Vice President, General Counsel, Secretary and Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.; formerly, Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.
Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, NGAM Advisors, L.P. and NGAM Distribution, L.P.
Rosa Licea-Mailloux (1976)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Since July 2016	Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.; formerly, Associate General Counsel, NGAM Distribution, L.P.

¹ 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.

² Each person listed above, except as noted, holds the same position(s) with the Fund Complex. Mr. Fuss is not an officer of the Natixis Funds Trusts. Previous positions during the past five years with NGAM Distribution, L.P., NGAM Advisors, L.P. or Loomis, Sayles & Company, L.P. are omitted, if not materially different from a trustee’s or officer’s current position with such entity.

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ANNUAL REPORT

September 30, 2016

Loomis Sayles Investment Grade Bond Fund

Loomis Sayles Strategic Income Fund

TABLE OF CONTENTS

Portfolio Review  page 1

Portfolio of Investments  page 18

Financial Statements  page  51

Notes to Financial Statements  page 65

LOOMIS SAYLES INVESTMENT GRADE BOND FUND

Managers	Symbols
Matthew J. Eagan, CFA®	Class A    LIGRX
Daniel J. Fuss, CFA®, CIC	Class C    LGBCX
Brian P. Kennedy	Class N    LGBNX
Elaine M. Stokes	Class Y    LSIIX
Loomis, Sayles & Company, L.P.	Admin Class    LIGAX

Investment Goal

The Fund seeks high total investment return through a combination of current income and capital appreciation.

Market Conditions

In the beginning of the period, the Federal Reserve (Fed) raised interest rates for the first time since June 2006. This led to modest losses within investment-grade markets and added to an already challenging environment for high yield. After oil prices bottomed in mid-February, capital returned to markets and riskier assets rebounded strongly. Volatility spiked temporarily in June following the U.K. referendum vote to leave the European Union (EU), but conditions were generally calm for the remainder of the period. Fixed-income markets finished the period on a positive note and added to full-year gains.

After declining through mid-February, U.S. high yield became a sought-after asset. The sector rewarded investors by producing strong and steady gains with minimal volatility. Spreads (the difference in yield between non-Treasury and Treasury securities of similar maturity) are trading inside the long-term average, but remain above the lows of 2014. Lower-quality credits and cyclical sectors outperformed during the period as the search for yield presses onward.

Investment-grade corporate bonds also performed well during the one-year period, bouncing back from the lows experienced during the fourth quarter of 2015. The sector’s longer duration (price sensitivity to interest rate changes) was a positive tailwind as longer-maturity yields declined. Overall returns were positive across all sectors, with cyclical sectors and energy performing well during the second half of the period.

For roughly the first half of the period, the U.S. dollar continued to strengthen against most major global currencies. But the Fed struck a more dovish tone early in 2016, and this contributed to a pause in the dollar bull market. A more stable dollar supported currencies — particularly those in the emerging markets — that suffered during the dollar’s ascent. The recovery in oil prices also helped ease the strain on commodity-related currencies.

Performance Results

For the 12 months ended September 30, 2016, Class A shares of the Loomis Sayles Investment Grade Bond Fund returned 8.06%. The fund outperformed its benchmark, the Bloomberg Barclays U.S. Government/Credit Bond Index, which returned 5.86%.

Explanation of Fund Performance

The fund’s outperformance was primarily due to out-of-benchmark allocations to high yield, convertible and equity securities. Within the high yield sector, exposure to industrials

1  |

and financials helped buoy performance. In particular, securities in the metals and mining and energy industries were among the top contributors, appreciating in value along with commodity prices. Selected high yield finance companies also boosted return, and the financials sector was a top contributor within the investment-grade corporate allocation, largely due to banking names. Name-specific exposure to the technology sector drove performance in the convertible and equity allocations.

Our shorter-than-benchmark duration detracted from results as interest rates declined over the period. The effects were most pronounced in the investment-grade industrial and utility sectors, where the fund maintained a shorter duration. Overall, non-U.S.-dollar-denominated securities detracted from performance, as uneven economic outlooks and divergent monetary policies weighed on most currencies relative to the dollar. The continued strength of the U.S. dollar pressured developed and emerging market currencies. Holdings denominated in the Mexican peso lagged. In the wake of the U.K. Brexit vote in late June, growth expectations slowed in the U.K. and Europe, causing holdings denominated in the British pound and euro to depreciate in value and detract from performance. Our positioning in Canadian dollar-denominated securities also weighed on results. During the period the Fund’s distributions were reduced to reflect the realization of currency losses from certain bond sales and maturities.

Outlook

Our outlook for the U.S. and global economies remains positive, with expectations for better growth momentum through the end of the year. In the U.S., we expect steady gains in employment, increased bank lending and stronger consumer confidence to support Gross Domestic Product (GDP) growth. The global economy is facing more headwinds but should experience modestly stronger growth next year, led by a healthier U.S. economy and still-accommodative global central bank policies.

Inflation expectations remain low. However, U.S. inflation is showing signs of acceleration and recent economic data have been favorable. We think the Fed is likely to raise rates in December if market conditions remain stable.

Oil prices are likely to be range-bound over the short term as elevated supply should be countered by OPEC’s expected production cut in November. We remain constructive on intermediate- to longer-term oil prices and expect that supply and demand will adjust.

We expect low global yields to continue supporting flows into U.S. credit, but at a more modest pace. In this environment, we intend to maintain a yield cushion in our portfolios through exposure to corporate bonds. Credit fundamentals have been stable, reflecting a slowly improving U.S. economy. However, downside risks — including slowing profit growth, rising leverage and free cash flow approaching peak levels — are increasing as we move further into the late stage of the credit cycle.¹ Despite these risks, we believe the current phase of the credit cycle can continue for some time, and we do not expect a significant increase in corporate defaults in 2017.

Within credit, we favor the investment-grade financials, technology and energy sectors. We are also biased to higher-quality high yield. Convertible bonds continue to look attractive, and our focus has shifted from equity-sensitive convertibles to more balanced and credit-sensitive issues. We believe these securities offer yield and upside potential with more limited downside risk.

¹  A credit cycle is a cyclical pattern that follows credit availability and corporate health.

|  2

LOOMIS SAYLES INVESTMENT GRADE BOND FUND

The Fed’s slow and cautious approach has helped keep the U.S. dollar range-bound against major currencies. Over the long term, improving global growth and further stability in commodities could support non-U.S.-dollar-denominated bonds. We are beginning to see more divergence in emerging market country fundamentals and political backdrops, which could expand potential relative value opportunities. We intend to maintain our current positions, which we believe represent long-term value, but are cautious on further exposure until we get better clarity on some of these evolving macro trends.

Risks include growing geopolitical risks, a prolonged period of low economic growth, declining corporate profit expectations and a shift to downturn in the U.S. credit cycle. Looking ahead, we remain focused on careful security selection using fundamental credit analysis. We intend to build on our key investment themes of yield and diversification, using our reserve allocation during periods of extreme short-term market dislocation to potentially add long-term value.

Since early 2015, monthly or quarterly ordinary income distributions for certain Loomis Sayles-managed fixed-income funds have been below historic averages. This is primarily due to the impact of foreign currency losses. Fund officers have analyzed the fund’s current portfolio of investments, schedule of maturities and the corresponding amounts of unrealized currency losses that may become realized in the fiscal year ending on September 30, 2017. Based on this analysis, fund officers believe that realized currency losses may have a less significant impact on this fund’s distributions in the 2017 fiscal year. As a result, the distribution amount may improve going forward. This analysis is based on certain assumptions, including but not limited to the level of foreign currency exchange rates, security prices, interest rates and the net asset level of the fund. Changes to these assumptions could impact the analysis and the amounts of future fund distributions.

Hypothetical Growth of $10,000 Investment in Class A Shares⁴

September 30, 2006 through September 30, 2016

3  |

Average Annual Total Returns — September 30, 2016⁴

													Expense Ratio5
	1 Year			5 Years			10 Years			Life of Class N			Gross			Net
Class A (Inception 12/31/96)
NAV		8.06	%		4.33	%		5.95	%		—	%		0.83	%		0.83	%
With 4.25% Maximum Sales Charge		3.49			3.43			5.49			—
Class C (Inception 9/12/03)
NAV		7.18			3.54			5.15			—			1.58			1.58
With CDSC2		6.18			3.54			5.15			—
Class N (Inception 2/1/13)
NAV		8.31			—			—			2.45			0.47			0.47
Class Y (Inception 12/31/96)
NAV		8.25			4.58			6.21			—			0.58			0.58
Admin Class (Inception 2/1/10)1
NAV		7.73			4.06			5.60			—			1.08			1.08
Comparative Performance
Bloomberg Barclays U.S. Government/Credit Bond Index3		5.86			3.24			4.86			3.05

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit ngam.natixis.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

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

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

3 Bloomberg Barclays U.S. Government/Credit Bond Index is an unmanaged index that includes U.S. Treasuries, government-related issues, and investment grade U.S. corporate securities.

4 Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

5 As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/17. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

|  4

LOOMIS SAYLES STRATEGIC INCOME FUND

Managers	Symbols
Matthew J. Eagan, CFA®	Class A    NEFZX
Daniel J. Fuss, CFA®, CIC	Class C    NECZX
Brian P. Kennedy	Class N    NEZNX
Elaine M. Stokes	Class Y    NEZYX
Loomis, Sayles & Company, L.P.	Admin Class    NEZAX

Investment Goal

The Fund seeks high current income with a secondary objective of capital growth.

Market Conditions

In the beginning of the period, the Federal Reserve (Fed) raised interest rates for the first time since June 2006. This led to modest losses within investment-grade markets and added to an already challenging environment for high yield. After oil prices bottomed in mid-February, capital returned to markets and riskier assets rebounded strongly. Volatility spiked temporarily in June following the U.K. referendum vote to leave the European Union (EU), but conditions were generally calm for the remainder of the period. Fixed-income markets finished the period on a positive note and added to full-year gains.

After declining through mid-February, U.S. high yield became a sought-after asset. The sector rewarded investors by producing strong and steady gains with minimal volatility. Spreads (the difference in yield between non-Treasury and Treasury securities of similar maturity) are trading inside the long-term average, but remain above the lows of 2014. Lower-quality credits and cyclical sectors outperformed during the period as the search for yield presses onward.

Investment-grade corporate bonds also performed well during the one-year period, bouncing back from the lows experienced during the fourth quarter of 2015. The sector’s longer duration (price sensitivity to interest rate changes) was a positive tailwind as longer-maturity yields declined. Overall returns were positive across all sectors, with cyclical sectors and energy performing well during the second half of the period.

For roughly the first half of the period, the U.S. dollar continued to strengthen against most major global currencies. But the Fed struck a more dovish tone early in 2016, and this contributed to a pause in the dollar bull market. A more stable dollar supported currencies — particularly those in the emerging markets — that suffered during the dollar’s ascent. The recovery in oil prices also helped ease the strain on commodity-related currencies.

Performance Results

For the 12 months ended September 30, 2016, Class A shares of Loomis Sayles Strategic Income Fund returned 8.72%. The fund outperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, which returned 5.19%.

Explanation of Fund Performance

In general, our out-of-benchmark allocations drove the fund’s outperformance. In particular, a significant out-of-benchmark allocation to high yield industrials contributed to

5  |

results. The stabilization and recovery of oil prices led to strong returns for the sector, and our selected basic industry and energy names drove fund performance. In addition, out-of-benchmark exposure to common stocks and convertible bonds boosted returns. Among stocks, allocations to technology and basic industry companies lifted performance, and among convertibles, selected issues in technology and midstream energy drove results. Furthermore, our out-of-benchmark allocation to non-U.S.-dollar-denominated issues also generated positive returns. In particular, the stabilization among commodity prices benefited issues denominated in the New Zealand dollar and Australian dollar. The fund’s non-dollar allocation contributed positively to absolute and relative return despite losses from Mexican bonos positions (fixed-rate, peso-denominated coupon bonds) and positioning in Canadian dollar-denominated securities. Though non-U.S.-dollar-denominated positions contributed positively to performance overall, U.S. dollar appreciation relative to foreign currencies challenged some of the fund’s non-U.S.-dollar-denominated holdings during the period. During the period the Fund’s distributions were reduced to reflect the realization of currency losses from certain bond sales and maturities.

Meanwhile, our shorter-than-benchmark duration detracted from results as interest rates declined over the period. Elsewhere, a significant underweight to investment-grade industrials was a primary detractor from relative performance. The energy sector’s recovery boosted performance among investment-grade industrials, and our underweight detracted from relative results. In addition, security selection within our small allocation to asset-backed securities (ABS) weighed on absolute and relative returns. An out-of-benchmark allocation to bank loans in the capital goods and consumer cyclical sectors also detracted from results.

Outlook

Our outlook for the U.S. and global economies remains positive, with expectations for better growth momentum through the end of the year. In the U.S., we expect steady gains in employment, increased bank lending and stronger consumer confidence to support Gross Domestic Product (GDP) growth. The global economy is facing more headwinds but should experience modestly stronger growth next year, led by a healthier U.S. economy and still-accommodative global central bank policies.

Inflation expectations remain low. However, U.S. inflation is showing signs of acceleration and recent economic data have been favorable. We think the Fed is likely to raise rates in December if market conditions remain stable.

Oil prices are likely to be range-bound over the short term as elevated supply should be countered by OPEC’s expected production cut in November. We remain constructive on intermediate- to longer-term oil prices and expect that supply and demand will adjust.

We expect low global yields to continue supporting flows into U.S. credit, but at a more modest pace. In this environment, we intend to maintain a yield cushion in our portfolios through exposure to corporate bonds. Credit fundamentals have been stable, reflecting a slowly improving U.S. economy. However, downside risks — including slowing profit growth, rising leverage and free cash flow approaching peak levels — are increasing as we move further into the late stage of the credit cycle.¹ Despite these risks, we believe the current phase of the credit cycle can continue for some time, and we do not expect a significant increase in corporate defaults in 2017.

¹  A credit cycle is a cyclical pattern that follows credit availability and corporate health.

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LOOMIS SAYLES STRATEGIC INCOME FUND

Within credit, we favor the investment-grade financials, technology and energy sectors. We are also biased to higher-quality high yield. Convertible bonds continue to look attractive, and our focus has shifted from equity-sensitive convertibles to more balanced and credit-sensitive issues. We believe these securities offer yield and upside potential with more limited downside risk.

The Fed’s slow and cautious approach has helped keep the U.S. dollar range-bound against major currencies. Over the long term, improving global growth and further stability in commodities could support non-U.S.-dollar-denominated bonds. We are beginning to see more divergence in emerging market country fundamentals and political backdrops, which could expand potential relative value opportunities. We intend to maintain our current positions, which we believe represent long-term value, but are cautious on further exposure until we get better clarity on some of these evolving macro trends.

Risks include growing geopolitical risks, a prolonged period of low economic growth, declining corporate profit expectations and a shift to downturn in the U.S. credit cycle. Looking ahead, we remain focused on careful security selection using fundamental credit analysis. We intend to build on our key investment themes of yield and diversification, using our reserve allocation during periods of extreme short-term market dislocation to potentially add long-term value.

Since early 2015, monthly or quarterly ordinary income distributions for certain Loomis Sayles-managed fixed-income funds have been below historic averages. This is primarily due to the impact of foreign currency losses. Fund officers have analyzed the fund’s current portfolio of investments, schedule of maturities and the corresponding amounts of unrealized currency losses that may become realized in the fiscal year ending on September 30, 2017. Based on this analysis, fund officers believe that realized currency losses may have a less significant impact on this fund’s distributions in the 2017 fiscal year. As a result, the distribution amount may improve going forward. This analysis is based on certain assumptions, including but not limited to the level of foreign currency exchange rates, security prices, interest rates and the net asset level of the fund. Changes to these assumptions could impact the analysis and the amounts of future fund distributions.

Hypothetical Growth of $10,000 Investment in Class A Shares⁵

September 30, 2006 through September 30, 2016

7  |

Average Annual Total Returns — September 30, 2016⁵

													Expense Ratio6
	1 Year			5 Years			10 Years			Life of Class N			Gross			Net
Class A (Inception 5/1/95)
NAV		8.72	%		6.67	%		6.39	%		—	%		0.94	%		0.94	%
With 4.25% Maximum Sales Charge		4.12			5.75			5.92			—
Class C (Inception 5/1/95)
NAV		7.91			5.87			5.59			—			1.69			1.69
With CDSC2		6.91			5.87			5.59			—
Class N (Inception 2/1/13)
NAV		9.09			—			—			4.21			0.62			0.62
Class Y (Inception 12/1/99)
NAV		9.00			6.95			6.67			—			0.69			0.69
Admin Class (Inception 2/1/10)1
NAV		8.42			6.41			6.11			—			1.19			1.19
Comparative Performance
Bloomberg Barclays U.S. Aggregate Bond Index3		5.19			3.08			4.79			2.98
Bloomberg Barclays U.S. Universal Bond Index4		6.11			3.62			5.00			3.21

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit ngam.natixis.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

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

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

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

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

5 Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

6 As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the Fund has been exceeded. This arrangement is set to expire on 1/31/17. When an expense cap has not been exceeded, the Fund may have similar expense ratios.

1641749.1.1

|  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 the Funds are actively managed, there is no assurance that they will continue to invest in the securities or industries mentioned.

All investing involves risk, including the risk of loss. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

ADDITIONAL INDEX INFORMATION

This document may contain references to third party copyrights, indexes, and trademarks, each of which is the property of its respective owner. Such owner is not affiliated with Natixis Global Asset Management or any of its related or affiliated companies (collectively “NGAM”) and does not sponsor, endorse or participate in the provision of any NGAM services, funds or other financial products.

The index information contained herein is derived from third parties and is provided on an “as is” basis. The user of this information assumes the entire risk of use of this information. Each of the third party entities involved in compiling, computing or creating index information disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to such information.

PROXY VOTING INFORMATION

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

QUARTERLY PORTFOLIO SCHEDULES

The Natixis Funds file complete schedules 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.

9  |

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; and ongoing costs, including management fees, distribution fees (12b-1 fees) and/or service fees, and other fund expenses. Certain exemptions may apply. These costs are described in more detail in the Fund’s prospectus. The following examples 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 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, 2016 through September 30, 2016. 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 Expenses Paid During Period column as shown below for your class.

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

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LOOMIS SAYLES INVESTMENT GRADE BOND FUND	BEGINNING ACCOUNT VALUE 4/1/2016		ENDING ACCOUNT VALUE 9/30/2016		EXPENSES PAID DURING PERIOD* 4/1/2016 – 9/30/2016
Class A
Actual		$1,000.00		$1,046.00		$4.30
Hypothetical (5% return before expenses)		$1,000.00		$1,020.80		$4.24
Class C
Actual		$1,000.00		$1,042.60		$8.12
Hypothetical (5% return before expenses)		$1,000.00		$1,017.05		$8.02
Class N
Actual		$1,000.00		$1,047.90		$2.41
Hypothetical (5% return before expenses)		$1,000.00		$1,022.65		$2.38
Class Y
Actual		$1,000.00		$1,047.30		$3.02
Hypothetical (5% return before expenses)		$1,000.00		$1,022.05		$2.98
Admin Class
Actual		$1,000.00		$1,044.80		$5.57
Hypothetical (5% return before expenses)		$1,000.00		$1,019.55		$5.50

* Expenses are equal to the Fund’s annualized expense ratio: 0.84%, 1.59%, 0.47%, 0.59% and 1.09% for Class A, C, N, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 366 (to reflect the half-year period).

11  |

LOOMIS SAYLES STRATEGIC INCOME FUND	BEGINNING ACCOUNT VALUE 4/1/2016		ENDING ACCOUNT VALUE 9/30/2016		EXPENSES PAID DURING PERIOD* 4/1/2016 – 9/30/2016
Class A
Actual		$1,000.00		$1,070.50		$4.92
Hypothetical (5% return before expenses)		$1,000.00		$1,020.25		$4.80
Class C
Actual		$1,000.00		$1,066.00		$8.78
Hypothetical (5% return before expenses)		$1,000.00		$1,016.50		$8.57
Class N
Actual		$1,000.00		$1,072.20		$3.26
Hypothetical (5% return before expenses)		$1,000.00		$1,021.85		$3.18
Class Y
Actual		$1,000.00		$1,071.80		$3.63
Hypothetical (5% return before expenses)		$1,000.00		$1,021.50		$3.54
Admin Class
Actual		$1,000.00		$1,068.70		$6.21
Hypothetical (5% return before expenses)		$1,000.00		$1,019.00		$6.06

* Expenses are equal to the Fund’s annualized expense ratio: 0.95%, 1.70%, 0.63%, 0.70% and 1.20% for Class A, C, N, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 366 (to reflect the half-year period).

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BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

The Board of Trustees of the Trust (the “Board”), 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 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 (the “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 the fees charged to institutional accounts with similar strategies managed by the Adviser, if any, and to those of peer groups of funds and information about any applicable expense caps and/or fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Adviser and (v) information obtained through the completion by the Adviser of a questionnaire distributed on behalf of the Trustees. The Board, including the Independent Trustees, also considers 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, if applicable, 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, (vii) information about amounts invested by the Funds’ portfolio managers in the Funds or in similar accounts that they manage and (viii) 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 their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board 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 each Fund’s performance and fee differentials against each Fund’s peer group/category, performance ratings provided by a third-party, total return information for various periods,

13  |

and third-party performance rankings for various periods comparing a Fund against similarly categorized funds. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review Committee and/or the full Board, 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 Trustees also receive periodic updates between meetings.

The Board most recently approved the continuation of the Agreements at its meeting held in June 2016. The Agreements were continued for a one-year period for the Funds. In considering whether to approve the continuation of the Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

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.

The Trustees considered not only the advisory services provided by the Adviser to the Funds, but also the monitoring and oversight services provided by NGAM Advisors, L.P. (“NGAM Advisors”). They also considered the administrative services provided by NGAM 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 that compared the performance of the Funds to the performance of peer groups and categories of funds and the Funds’ respective performance benchmarks. In addition, the Trustees also reviewed data prepared by an independent third party that analyzed the performance of the Funds using a variety of performance metrics, including metrics that 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. The Trustees noted that while each Fund had performance that lagged that of a relevant peer group and/or category median for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Agreements. These factors included one or more of the following: (1) that the underperformance was

|  14

attributable, to a significant extent, to investment decisions by the Adviser that were reasonable and consistent with the Fund’s investment objective and policies; (2) that the Fund’s long-term performance was competitive when compared to relevant performance benchmarks or peer groups; and (3) that the Fund’s more recent performance, although lagging in certain periods, had shown improvement relative to its category.

The Trustees also considered the Adviser’s performance and reputation generally, the performance of the fund family generally, 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 and/or other relevant factors 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 (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. 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 and the greater regulatory costs associated with the management of such assets. In evaluating each Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund, as well as the need for the Adviser to offer competitive compensation and the potential need to expend additional resources to the extent the Funds grow in size. 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 the Funds in this report have expense caps in place, and the Trustees considered that the current expenses of each Fund are below the cap.

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 Adviser’s 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 changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser compensation or profitability were issues and the performance of the relevant Funds, the expense levels of the Funds, whether the Adviser had implemented breakpoints and/or expense caps with respect to such Funds.

15  |

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the advisory fee charged to each of the Funds was 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 or caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense waivers or caps for certain funds. Management explained that a number of factors are taken into account in considering the possible implementation of breakpoints or an expense cap for a fund, including, among other things, factors such as a fund’s assets, the projected growth of a fund, projected profitability and a fund’s fees and performance. With respect to economies of scale, the Trustees noted that each of the Funds was subject to an expense cap or waiver and that each Fund’s overall net expense ratio was below the median compared to a peer group of funds. The Trustees further noted that the Funds’ current expenses are below the expense cap. 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 concluded, 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:

· The effect of recent market and economic events on the performance, asset levels and expense ratios of each Fund.

· 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 (if any) generated by the Funds’ securities transactions. The Trustees also considered the benefits to the parent company of NGAM Advisors from the retention of the 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.

|  16

· The Trustees’ review and discussion of the Funds’ advisory arrangements in prior years, and management’s record of responding to Trustee concerns raised during the year and in prior years.

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 Agreements should be continued through June 30, 2017.

17  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 94.8% of Net Assets
	Non-Convertible Bonds — 88.8%
		ABS Other — 1.6%
$	55,161,537	FAN Engine Securitization Ltd., Series 2013-1A, Class 1A, 4.625%, 10/15/2043, 144A(b)(c)	$	54,595,028
	32,995,333	Trinity Rail Leasing LP, Series 2009-1A, Class A, 6.657%, 11/16/2039, 144A		36,168,461
	11,503,653	Trinity Rail Leasing LP, Series 2010-1A, Class A, 5.194%, 10/16/2040, 144A		11,342,128
	2,570,567	Trinity Rail Leasing LP, Series 2012-1A, Class A1, 2.266%, 1/15/2043, 144A		2,515,138
	5,500,004	Trip Rail Master Funding LLC, Series 2011-1A, Class A1A, 4.370%, 7/15/2041, 144A		5,633,370
				110,254,125
		Aerospace & Defense — 1.7%
	2,100,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		1,798,125
	1,295,000	Meccanica Holdings USA, Inc., 6.250%, 1/15/2040, 144A		1,269,100
	1,530,000	Meccanica Holdings USA, Inc., 7.375%, 7/15/2039		1,675,350
	78,795,000	Textron, Inc., 5.950%, 9/21/2021		90,256,363
	11,040,000	Textron, Inc., EMTN, 6.625%, 4/07/2020, (GBP)		16,289,493
	5,695,000	TransDigm, Inc., 6.500%, 5/15/2025		5,929,919
				117,218,350
		Airlines — 2.1%
	4,213,389	Air Canada Pass Through Trust, Series 2013-1, Class B, 5.375%, 11/15/2022, 144A		4,339,791
	18,340,000	Continental Airlines Pass Through Certificates, Series 2012-3, Class C, 6.125%, 4/29/2018		19,165,300
	142,131	Continental Airlines Pass Through Trust, Series 1998-1, Class A, 6.648%, 3/15/2019		144,434
	570,502	Continental Airlines Pass Through Trust, Series 1999-1, Class A, 6.545%, 8/02/2020		605,074
	1,072,140	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022		1,151,210
	46,306,182	Continental Airlines Pass Through Trust, Series 2007-1, Class A, 5.983%, 10/19/2023		52,210,220
	2,133,062	Continental Airlines Pass Through Trust, Series 2012-1, Class B, 6.250%, 10/11/2021		2,287,709
	1,330,108	Delta Air Lines Pass Through Trust, Series 2007-1, Class A, 6.821%, 2/10/2024		1,572,852
	8,441,017	Delta Air Lines Pass Through Trust, Series 2007-1, Class B, 8.021%, 2/10/2024		9,612,630
	17,341,523	Delta Air Lines Pass Through Trust, Series 2009-1, Class A, 7.750%, 6/17/2021		19,602,857
	1,814,076	Delta Air Lines Pass Through Trust, Series 2009-1, Series B, 9.750%, 6/17/2018		1,858,666
	10,791,924	Delta Air Lines Pass Through Trust, Series 2010-1, Class A, 6.200%, 1/02/2020		11,466,419
	17,485,414	UAL Pass Through Trust, Series 2007-1, Class A, 6.636%, 1/02/2024		18,621,966
	167,646	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		167,847
	1,925,496	Virgin Australia Pass Through Trust, Series 2013-1A, 5.000%, 4/23/2025, 144A		1,993,543
				144,800,518

See accompanying notes to financial statements.

|  18

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Automotive — 1.2%
$	23,581,000	Cummins, Inc., 5.650%, 3/01/2098	$	26,355,776
	5,274,000	Cummins, Inc., 6.750%, 2/15/2027		6,642,914
	125,000	Ford Motor Co., 6.500%, 8/01/2018		136,120
	255,000	Ford Motor Co., 6.625%, 2/15/2028		305,549
	240,000	Ford Motor Co., 7.500%, 8/01/2026		306,791
	5,000,000	Ford Motor Credit Co. LLC, 5.000%, 5/15/2018		5,248,270
	40,126,000	Ford Motor Credit Co. LLC, 6.625%, 8/15/2017		41,876,617
	2,370,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		2,589,225
				83,461,262
		Banking — 13.8%
	1,468,000	Ally Financial, Inc., 8.000%, 11/01/2031		1,812,980
	7,200,000	American Express Centurion Bank, Series BKN1, 6.000%, 9/13/2017		7,509,614
	103,309,000	Bank of America Corp., 6.110%, 1/29/2037		126,263,950
	25,627,000	Bank of America Corp., MTN, 3.300%, 1/11/2023		26,528,250
	100,000	Bank of America Corp., MTN, 4.250%, 10/22/2026		106,094
	25,090,000	Bank of Nova Scotia, 2.130%, 6/15/2020, (CAD)		19,578,022
	1,056,000	Barclays Bank PLC, 6.050%, 12/04/2017, 144A		1,104,217
	2,173,000	Bear Stearns Cos., Inc. (The), 4.650%, 7/02/2018		2,290,822
	17,000,000	Citigroup, Inc., 3.500%, 5/15/2023		17,464,797
	1,660,000	Citigroup, Inc., 4.500%, 1/14/2022		1,833,365
	22,960,000	Citigroup, Inc., 5.130%, 11/12/2019, (NZD)		17,532,411
	44,910,000	Citigroup, Inc., 6.250%, 6/29/2017, (NZD)		33,431,870
	21,855,000	Cooperatieve Rabobank UA, 3.875%, 2/08/2022		23,917,609
	5,265,000	Cooperatieve Rabobank UA, 3.950%, 11/09/2022		5,519,178
	86,800,000	Goldman Sachs Group, Inc. (The), 3.375%, 2/01/2018, (CAD)		67,736,353
	1,174,000	Goldman Sachs Group, Inc. (The), 6.450%, 5/01/2036		1,450,783
	112,330,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		143,030,912
	6,645,000	Goldman Sachs Group, Inc. (The), GMTN, 5.375%, 3/15/2020		7,358,261
	700,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		713,319
	70,245,000	JPMorgan Chase & Co., 4.125%, 12/15/2026		74,951,907
	36,745,000	JPMorgan Chase & Co., 4.250%, 11/02/2018, (NZD)		27,326,315
	2,950,000	JPMorgan Chase & Co., EMTN, 0.829%, 5/30/2017, (GBP)(d)		3,810,258
	100,000	Keybank NA, 6.950%, 2/01/2028		130,454
	5,100,000	Lloyds Banking Group PLC, 5.300%, 12/01/2045, 144A		5,490,099
	40,126,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		47,298,523
	1,845,000	Morgan Stanley, 4.350%, 9/08/2026		1,969,726
	30,000,000	Morgan Stanley, 4.750%, 11/16/2018, (AUD)		23,865,438
	5,900,000	Morgan Stanley, 5.750%, 1/25/2021		6,725,617
	151,076,000	Morgan Stanley, 7.600%, 8/08/2017, (NZD)		113,842,482
	60,800,000	Morgan Stanley, 8.000%, 5/09/2017, (AUD)		47,981,666
	550,000	Morgan Stanley, EMTN, 5.750%, 2/14/2017, (GBP)		725,235
	20,695,000	Morgan Stanley, MTN, 4.100%, 5/22/2023		21,880,016
	38,206,000	Morgan Stanley, Series F, GMTN, 5.625%, 9/23/2019		42,311,579
	2,875,000	National City Bank of Indiana, 4.250%, 7/01/2018		3,001,284
	8,638,000	National City Corp., 6.875%, 5/15/2019		9,730,094
				936,223,500

See accompanying notes to financial statements.

19  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Brokerage — 1.2%
$	50,270,000	Jefferies Group LLC, 5.125%, 1/20/2023	$	53,557,256
	19,498,000	Jefferies Group LLC, 6.250%, 1/15/2036		20,322,317
	8,760,000	Jefferies Group LLC, 6.450%, 6/08/2027		9,917,196
				83,796,769
		Building Materials — 1.4%
	6,058,000	Masco Corp., 6.500%, 8/15/2032		6,663,800
	24,203,000	Masco Corp., 7.125%, 3/15/2020		27,833,450
	5,725,000	Masco Corp., 7.750%, 8/01/2029		6,841,375
	41,379,000	Owens Corning, 7.000%, 12/01/2036		52,236,105
				93,574,730
		Cable Satellite — 1.5%
	17,832,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		14,915,569
	13,630,000	Time Warner Cable LLC, 4.125%, 2/15/2021		14,467,564
	2,800,000	Time Warner Cable LLC, 4.500%, 9/15/2042		2,671,925
	64,548,000	Time Warner Cable LLC, 6.750%, 7/01/2018		70,135,339
				102,190,397
		Chemicals — 0.8%
	2,270,000	Consolidated Energy Finance S.A., 6.750%, 10/15/2019, 144A		2,241,625
	50,500,000	INVISTA Finance LLC, 4.250%, 10/15/2019, 144A		50,251,540
				52,493,165
		Construction Machinery — 0.1%
	6,787,000	Toro Co., 6.625%, 5/01/2037(b)(c)		8,133,928
		Consumer Products — 0.1%
	7,458,000	Hasbro, Inc., 6.600%, 7/15/2028		9,026,470
		Diversified Manufacturing — 1.2%
	35,580,000	General Electric Co., GMTN, 4.250%, 1/17/2018, (NZD)		26,296,354
	51,370,000	General Electric Co., Series A, GMTN, 5.500%, 2/01/2017, (NZD)		37,696,761
	1,395,000	Ingersoll-Rand Global Holding Co. Ltd., 6.875%, 8/15/2018		1,533,514
	11,754,000	Snap-on, Inc., 6.700%, 3/01/2019		13,145,568
				78,672,197
		Electric — 1.6%
	27,519,574	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		28,155,662
	8,175,456	Bruce Mansfield Unit Pass Through Trust, 6.850%, 6/01/2034(b)(c)		4,162,779
	9,066,000	Cleveland Electric Illuminating Co. (The), 5.700%, 4/01/2017		9,249,541
	30,430,000	EDP Finance BV, 4.125%, 1/15/2020, 144A		31,540,695
	4,491,000	Empresa Nacional de Electricidad S.A., 7.875%, 2/01/2027		5,580,678
	13,025,000	Enel Finance International NV, 6.000%, 10/07/2039, 144A		15,751,289
	9,007,000	Enel Finance International NV, 6.800%, 9/15/2037, 144A		11,897,743
	4,215,908	Mackinaw Power LLC, 6.296%, 10/31/2023, 144A(b)(c)		4,679,114
				111,017,501
		Finance Companies — 3.6%
	5,305,000	General Electric Co., Series A, MTN, 0.980%, 5/13/2024(d)		4,969,989
	18,830,000	International Lease Finance Corp., 4.625%, 4/15/2021		19,724,425
	90,196,000	Navient LLC, 5.500%, 1/25/2023		82,754,830
	62,425(††)	Navient LLC, 6.000%, 12/15/2043		1,434,214

See accompanying notes to financial statements.

|  20

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Finance Companies — continued
$	8,895,000	Navient LLC, MTN, 7.250%, 1/25/2022	$	9,072,900
	641,000	Navient LLC, MTN, 8.000%, 3/25/2020		687,473
	7,447,000	Navient LLC, Series A, MTN, 5.000%, 6/15/2018		7,447,000
	22,116,000	Navient LLC, Series A, MTN, 5.625%, 8/01/2033(b)(c)		17,582,220
	14,625,000	Quicken Loans, Inc., 5.750%, 5/01/2025, 144A		14,515,313
	18,597,000	Springleaf Finance Corp., 5.250%, 12/15/2019		18,992,186
	47,260,000	Springleaf Finance Corp., 7.750%, 10/01/2021		49,563,925
	19,414,000	Springleaf Finance Corp., 8.250%, 10/01/2023		20,384,700
				247,129,175
		Government Guaranteed — 0.4%
	4,000,000	Japan Bank for International Cooperation (Japan), 2.300%, 3/19/2018, (CAD)		3,088,380
	31,142,000	Queensland Treasury Corp., 7.125%, 9/18/2017, 144A, (NZD)		23,683,891
				26,772,271
		Government Owned – No Guarantee — 1.3%
	3,720,000	Abu Dhabi National Energy Co. PJSC, 6.500%, 10/27/2036, 144A		4,984,220
	36,975,000	Abu Dhabi National Energy Co. PJSC, 7.250%, 8/01/2018, 144A		40,487,625
	12,575,000	Pertamina Persero PT, 6.450%, 5/30/2044, 144A		14,566,867
	17,435,000	Petrobras Global Finance BV, 4.375%, 5/20/2023		15,595,608
	11,555,000	Petrobras Global Finance BV, 5.625%, 5/20/2043		8,724,025
	1,000,000	Telekom Malaysia Berhad, 7.875%, 8/01/2025, 144A		1,342,453
				85,700,798
		Health Insurance — 0.1%
	1,569,000	Cigna Corp., 7.875%, 5/15/2027		2,193,260
	1,174,000	Cigna Corp., (Step to 8.080% on 1/15/2023), 8.300%, 1/15/2033(e)		1,663,129
				3,856,389
		Healthcare — 0.7%
	7,692,000	Boston Scientific Corp., 6.000%, 1/15/2020		8,689,506
	7,374,000	Covidien International Finance S.A., 6.000%, 10/15/2017		7,732,952
	9,385,000	HCA, Inc., 4.500%, 2/15/2027		9,443,656
	4,806,000	HCA, Inc., 7.050%, 12/01/2027		5,112,382
	1,592,000	HCA, Inc., 7.500%, 11/06/2033		1,725,330
	3,807,000	HCA, Inc., 7.690%, 6/15/2025		4,278,725
	2,480,000	HCA, Inc., MTN, 7.580%, 9/15/2025		2,796,200
	3,068,000	HCA, Inc., MTN, 7.750%, 7/15/2036		3,324,945
	4,785,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		3,935,663
				47,039,359
		Home Construction — 0.1%
	3,990,000	PulteGroup, Inc., 6.000%, 2/15/2035		4,029,900
	3,567,000	PulteGroup, Inc., 6.375%, 5/15/2033		3,715,626
	1,615,000	TRI Pointe Holdings, Inc./TRI Pointe Group, Inc., 5.875%, 6/15/2024		1,679,600
				9,425,126
		Independent Energy — 1.7%
	7,335,000	Continental Resources, Inc., 3.800%, 6/01/2024		6,711,525
	1,380,000	Continental Resources, Inc., 4.500%, 4/15/2023		1,324,800

See accompanying notes to financial statements.

21  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Independent Energy — continued
$	9,787,000	EQT Corp., 8.125%, 6/01/2019	$	11,187,021
	60,038,000	Equitable Resources, Inc., 6.500%, 4/01/2018		62,931,651
	29,027,000	Noble Energy, Inc., 3.900%, 11/15/2024		29,604,870
	400,000	QEP Resources, Inc., 5.250%, 5/01/2023		394,000
	60,000	Whiting Petroleum Corp., 6.250%, 4/01/2023		54,750
				112,208,617
		Integrated Energy — 0.1%
	7,700,000	Reliance Holdings USA, Inc., 5.400%, 2/14/2022, 144A		8,674,935
		Life Insurance — 1.6%
	1,475,000	American International Group, Inc., 4.875%, 6/01/2022		1,659,586
	600,000	AXA S.A., EMTN, (fixed rate to 10/16/2019, variable rate thereafter), 6.772%, (GBP)(f)		829,951
	5,900,000	AXA S.A., EMTN, (fixed rate to 4/16/2020, variable rate thereafter), 5.250%, 4/16/2040, (EUR)		7,396,449
	15,000,000	Forethought Financial Group, Inc., 8.625%, 4/15/2021, 144A(b)(c)		17,246,400
	9,063,000	Mutual of Omaha Insurance Co., 6.800%, 6/15/2036, 144A		11,563,998
	26,914,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A(b)(c)		41,272,081
	6,440,000	NLV Financial Corp., 7.500%, 8/15/2033, 144A(b)(c)		7,428,514
	2,872,000	Penn Mutual Life Insurance Co. (The), 6.650%, 6/15/2034, 144A		3,452,868
	14,489,000	Penn Mutual Life Insurance Co. (The), 7.625%, 6/15/2040, 144A		18,911,912
				109,761,759
		Local Authorities — 2.5%
	37,829,000	New South Wales Treasury Corp., 3.500%, 3/20/2019, (AUD)		30,208,057
	152,895,000	New South Wales Treasury Corp., 6.000%, 2/01/2018, (AUD)		123,613,427
	17,930,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		13,932,818
	489,000	Province of Nova Scotia, 6.600%, 6/01/2027, (CAD)		529,042
				168,283,344
		Lodging — 0.8%
	52,516,000	Choice Hotels International, Inc., 5.700%, 8/28/2020		57,111,150
		Media Entertainment — 0.5%
	4,482,000	21st Century Fox America, Inc., 8.150%, 10/17/2036		6,504,081
	358,000,000	Grupo Televisa SAB, EMTN, 7.250%, 5/14/2043, (MXN)		16,005,964
	5,000,000	iHeartCommunications, Inc., 9.000%, 3/01/2021		3,725,000
	1,805,000	R.R. Donnelley & Sons Co., 6.500%, 11/15/2023		1,818,537
	3,616,000	Viacom, Inc., 6.125%, 10/05/2017		3,775,249
				31,828,831
		Metals & Mining — 3.2%
	1,689,997	1839688 Alberta ULC, PIK, 14.000%, 2/13/2020(b)(g)(h)(i)		676
	15,000,000	Alcoa, Inc., 5.400%, 4/15/2021		16,050,000
	15,060,000	Alcoa, Inc., 5.870%, 2/23/2022		16,189,500
	45,700,000	Alcoa, Inc., 5.900%, 2/01/2027		48,899,000
	5,505,000	Alcoa, Inc., 5.950%, 2/01/2037		5,535,278
	5,804,000	Alcoa, Inc., 6.750%, 1/15/2028		6,340,870
	430,000	ArcelorMittal, 6.500%, 3/01/2021		478,375
	4,085,000	ArcelorMittal, 7.250%, 2/25/2022		4,636,475
	47,920,000	ArcelorMittal, 7.750%, 3/01/2041		49,956,600

See accompanying notes to financial statements.

|  22

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Metals & Mining — continued
$	19,365,000	ArcelorMittal, 8.000%, 10/15/2039	$	20,914,200
	20,625,000	Barminco Finance Pty Ltd., 9.000%, 6/01/2018, 144A		19,954,687
	15,701,000	Freeport-McMoran Oil & Gas LLC/FCX Oil & Gas, Inc., 6.500%, 11/15/2020		16,113,151
	4,612,000	United States Steel Corp., 6.650%, 6/01/2037		3,689,600
	3,655,000	Vale Overseas Ltd., 6.875%, 11/21/2036		3,552,660
	4,893,000	Worthington Industries, Inc., 6.500%, 4/15/2020		5,436,828
				217,747,900
		Midstream — 3.1%
	650,000	DCP Midstream LLC, 6.450%, 11/03/2036, 144A		632,125
	3,328,000	Florida Gas Transmission Co., 7.900%, 5/15/2019, 144A		3,775,070
	14,300,000	IFM U.S. Colonial Pipeline 2 LLC, 6.450%, 5/01/2021, 144A		16,144,485
	14,660,000	Kinder Morgan Energy Partners LP, 3.500%, 9/01/2023		14,682,826
	3,105,000	Kinder Morgan Energy Partners LP, 5.300%, 9/15/2020		3,350,084
	7,461,000	Kinder Morgan Energy Partners LP, 5.800%, 3/01/2021		8,334,429
	85,000	NGPL PipeCo LLC, 7.768%, 12/15/2037, 144A		92,225
	46,655,000	ONEOK Partners LP, 4.900%, 3/15/2025		50,188,043
	9,899,000	Panhandle Eastern Pipe Line Co. LP, 6.200%, 11/01/2017		10,280,488
	47,594,000	Panhandle Eastern Pipe Line Co. LP, 7.000%, 6/15/2018		50,668,906
	1,404,000	Panhandle Eastern Pipe Line Co. LP, 8.125%, 6/01/2019		1,573,967
	1,880,000	Plains All American Pipeline LP, 6.125%, 1/15/2017		1,902,485
	15,683,000	Plains All American Pipeline LP/PAA Finance Corp., 6.500%, 5/01/2018		16,716,353
	525,000	Regency Energy Partners LP/Regency Energy Finance Corp., 4.500%, 11/01/2023		528,536
	4,125,000	Southern Natural Gas Co., 5.900%, 4/01/2017, 144A		4,212,796
	19,574,000	Texas Eastern Transmission LP, 6.000%, 9/15/2017, 144A		20,370,662
	8,405,000	Williams Partners LP, 3.350%, 8/15/2022		8,320,034
				211,773,514
		Mortgage Related — 0.0%
	26,646	FHLMC, 5.000%, 12/01/2031		29,856
	3,470	FNMA, 6.000%, 7/01/2029		4,007
				33,863
		Natural Gas — 0.5%
	1,745,000	NiSource Finance Corp., 6.125%, 3/01/2022		2,082,144
	8,900,000	NiSource Finance Corp., 6.400%, 3/15/2018		9,501,115
	21,614,000	NiSource Finance Corp., 6.800%, 1/15/2019		24,067,751
				35,651,010
		Non-Agency Commercial Mortgage-Backed Securities — 0.9%
	11,450,000	CDGJ Commercial Mortgage Trust Pass Through Certificates, Series 2014-BXCH, 3.024%, 12/15/2027, 144A(d)		11,297,118
	9,785,000	Commercial Mortgage Trust, Series 2014-FL5, Class SV3, 3.474%, 10/15/2031, 144A(b)(c)(d)		9,773,317
	8,515,000	Commercial Mortgage Trust, Series 2014-FL5, Class SV4, 4.674%, 10/15/2031, 144A(b)(c)(d)		8,517,393
	6,720,273	Institutional Mortgage Securities Canada, Inc., Series 2014-5A, Class A1, 2.003%, 7/12/2047, 144A, (CAD)		5,081,888
	27,000,000	Institutional Mortgage Securities Canada, Inc., Series 2014-5A, Class A2, 2.616%, 7/12/2047, 144A, (CAD)		20,601,867

See accompanying notes to financial statements.

23  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Non-Agency Commercial Mortgage-Backed Securities — continued
$	2,125,000	WFRBS Commercial Mortgage Trust, Series 2011-C3, Class D, 5.813%, 3/15/2044, 144A(d)	$	2,228,682
				57,500,265
		Oil Field Services — 0.4%
	5,000,000	Nabors Industries, Inc., 5.100%, 9/15/2023		4,812,500
	23,338,000	Rowan Cos., Inc., 7.875%, 8/01/2019		24,913,315
	587,000	Transocean, Inc., 7.375%, 4/15/2018		595,805
				30,321,620
		Paper — 1.3%
	4,365,000	Celulosa Arauco y Constitucion S.A., 7.250%, 7/29/2019		4,942,834
	363,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		519,469
	7,049,000	International Paper Co., 8.700%, 6/15/2038		10,425,577
	5,270,000	WestRock MWV LLC, 7.550%, 3/01/2047(b)(c)		6,755,903
	4,273,000	WestRock MWV LLC, 8.200%, 1/15/2030		5,826,479
	26,007,000	Weyerhaeuser Co., 6.875%, 12/15/2033		33,036,328
	7,374,000	Weyerhaeuser Co., 7.375%, 10/01/2019		8,477,490
	13,539,000	Weyerhaeuser Co., 7.375%, 3/15/2032		18,329,789
				88,313,869
		Property & Casualty Insurance — 0.2%
	2,740,000	Fidelity National Financial, Inc., 5.500%, 9/01/2022		3,016,578
	1,889,000	MBIA Insurance Corp., 11.940%, 1/15/2033, 144A(d)(j)		755,600
	1,372,000	Old Republic International Corp., 4.875%, 10/01/2024		1,483,527
	7,609,000	Sirius International Group, 6.375%, 3/20/2017, 144A		7,729,550
	2,212,000	XLIT Ltd., 6.250%, 5/15/2027		2,671,428
				15,656,683
		Railroads — 0.2%
	9,787,000	Canadian Pacific Railway Co., 7.250%, 5/15/2019		11,165,450
	237,000	Missouri Pacific Railroad Co., 4.750%, 1/01/2030(b)(c)		236,983
	1,701,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(b)(c)		1,663,226
	191,000	Missouri Pacific Railroad Co., Series A, 4.750%, 1/01/2020(b)(c)		190,516
				13,256,175
		Real Estate Operations/Development — 0.2%
	10,276,000	First Industrial LP, 5.950%, 5/15/2017		10,537,750
		REITs – Apartments — 0.3%
	16,491,000	Camden Property Trust, 5.700%, 5/15/2017		16,910,416
		REITs – Health Care — 0.1%
	5,972,000	Welltower, Inc., 6.500%, 3/15/2041		7,614,712
		REITs – Office Property — 0.3%
	20,817,000	Highwoods Realty LP, 5.850%, 3/15/2017		21,191,102
		REITs – Single Tenant — 0.5%
	8,690,000	Realty Income Corp., 5.750%, 1/15/2021		9,906,600
	22,701,000	Realty Income Corp., 6.750%, 8/15/2019		25,808,653
				35,715,253
		Restaurants — 0.2%
	10,320,000	Darden Restaurants, Inc., 6.000%, 8/15/2035		11,257,541

See accompanying notes to financial statements.

|  24

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Retailers — 0.6%
$	1,255,000	Group 1 Automotive, Inc., 5.000%, 6/01/2022	$	1,258,916
	430,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		445,050
	5,979,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		5,141,940
	5,446,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		4,492,950
	10,467,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		12,063,992
	8,064,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		10,054,679
	3,755,000	Phillips-Van Heusen Corp., 7.750%, 11/15/2023		4,346,412
				37,803,939
		Sovereigns — 0.6%
	33,600,000	Republic of Iceland, 5.875%, 5/11/2022, 144A		39,475,296
		Supermarkets — 0.6%
	4,510,000	Albertson’s Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, 6.625%, 6/15/2024, 144A		4,690,400
	1,120,000	Koninklijke Ahold Delhaize NV, 5.700%, 10/01/2040		1,355,643
	3,269,000	Kroger Co. (The), 6.400%, 8/15/2017		3,417,838
	6,595,000	New Albertson’s, Inc., 7.450%, 8/01/2029		6,463,100
	7,875,000	New Albertson’s, Inc., 8.000%, 5/01/2031		7,766,719
	989,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		909,880
	17,290,000	SUPERVALU, Inc., 6.750%, 6/01/2021		16,166,150
				40,769,730
		Supranational — 0.3%
	9,640,000	European Investment Bank, MTN, 6.000%, 8/06/2020, (AUD)		8,389,330
	12,982,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		9,848,760
				18,238,090
		Technology — 0.9%
	1,028,000	Arrow Electronics, Inc., 6.875%, 6/01/2018		1,110,173
	7,487,000	Corning, Inc., 7.250%, 8/15/2036		9,280,466
	20,969,000	Ingram Micro, Inc., 5.250%, 9/01/2017		21,572,865
	7,795,000	Intuit, Inc., 5.750%, 3/15/2017		7,953,543
	16,735,000	KLA-Tencor Corp., 5.650%, 11/01/2034		18,631,778
	1,502,000	Motorola Solutions, Inc., 6.625%, 11/15/2037		1,555,907
	1,692,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		2,158,725
				62,263,457
		Treasuries — 27.5%
	372,145,000	Canadian Government, 0.250%, 5/01/2017, (CAD)		283,209,734
	132,000,000	Canadian Government, 0.750%, 9/01/2020, (CAD)		101,316,879
	209,501,000	Canadian Government, 1.250%, 9/01/2018, (CAD)		161,939,906
	61,795,000	Canadian Government, 1.750%, 9/01/2019, (CAD)		48,767,157
	1,040,764,000	Iceland Government International Bond, 6.000%, 10/13/2016, (ISK)		6,194,095
	391,985,000	Iceland Government International Bond, 7.250%, 10/26/2022, (ISK)		2,578,235
	1,195,394,000	Iceland Government International Bond, 8.750%, 2/26/2019, (ISK)		7,670,445
	2,755,000(†††)	Mexican Fixed Rate Bonds, Series M, 7.750%, 5/29/2031, (MXN)		16,072,172
	2,965,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 7.500%, 6/03/2027, (MXN)		16,915,459
	7,555,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		43,804,135
	1,925,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.500%, 5/31/2029, (MXN)		11,863,683
	23,970,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 10.000%, 12/05/2024, (MXN)		156,170,581

See accompanying notes to financial statements.

25  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Treasuries — continued
	36,850,000	New Zealand Government Bond, 5.000%, 3/15/2019, (NZD)	$	28,803,224
	109,763,000	New Zealand Government Bond, 6.000%, 12/15/2017, (NZD)		83,790,193
	290,574,000	Norway Government Bond, 3.750%, 5/25/2021, 144A, (NOK)		41,039,316
	974,276,000	Norway Government Bond, 4.250%, 5/19/2017, 144A, (NOK)		124,661,165
	416,760,000	Norway Government Bond, 4.500%, 5/22/2019, 144A, (NOK)		57,233,212
	43,590,000	Republic of Brazil, 8.500%, 1/05/2024, (BRL)		12,381,428
	23,848,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		7,442,990
	75,000,000	U.S. Treasury Note, 0.500%, 3/31/2017		75,005,850
	150,000,000	U.S. Treasury Note, 0.625%, 6/30/2018		149,671,800
	125,000,000	U.S. Treasury Note, 0.750%, 1/31/2018		125,044,000
	205,000,000	U.S. Treasury Note, 0.750%, 8/31/2018		204,960,025
	100,000,000	U.S. Treasury Note, 0.750%, 9/30/2018		99,968,800
				1,866,504,484
		Wireless — 0.6%
	559,910,000	America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)		28,125,806
	58,200,000	America Movil SAB de CV, 8.460%, 12/18/2036, (MXN)		2,970,711
	6,373,000	Sprint Capital Corp., 6.875%, 11/15/2028		5,982,654
	612,000	Sprint Capital Corp., 8.750%, 3/15/2032		624,240
	1,609,000	Sprint Communications, Inc., 6.000%, 11/15/2022		1,492,347
	985,000	Sprint Corp., 7.125%, 6/15/2024		960,375
				40,156,133
		Wirelines — 4.6%
	33,710,000	AT&T, Inc., 2.625%, 12/01/2022		33,977,253
	26,815,000	AT&T, Inc., 3.000%, 2/15/2022		27,687,399
	406,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		431,218
	2,936,000	BellSouth Telecommunications LLC, 5.850%, 11/15/2045		3,033,123
	31,855,000	CenturyLink, Inc., 6.450%, 6/15/2021		34,124,669
	670,000	CenturyLink, Inc., 7.650%, 3/15/2042		577,875
	4,990,000	CenturyLink, Inc., Series G, 6.875%, 1/15/2028		4,809,112
	4,508,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		3,921,960
	195,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		185,494
	24,103,000	Embarq Corp., 7.995%, 6/01/2036		24,391,754
	265,000	Frontier Communications Corp., 7.875%, 1/15/2027		237,175
	1,365,000	Frontier Communications Corp., 9.000%, 8/15/2031		1,255,800
	5,200,000	Oi S.A., 9.750%, 9/15/2016, 144A, (BRL)(g)		279,815
	8,450,000	Portugal Telecom International Finance BV, EMTN, 4.500%, 6/16/2025, (EUR)(j)		2,183,230
	18,850,000	Portugal Telecom International Finance BV, EMTN, 5.000%, 11/04/2019, (EUR)(j)		4,870,281
	2,755,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		2,603,475
	4,370,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		4,501,100
	3,469,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		3,364,930
	333,000	Qwest Corp., 6.500%, 6/01/2017		342,990
	12,308,000	Qwest Corp., 6.875%, 9/15/2033		12,269,821
	9,077,000	Qwest Corp., 7.250%, 9/15/2025		9,933,215
	9,474,000	Qwest Corp., 7.250%, 10/15/2035		9,373,358
	3,185,000	Telecom Italia Capital S.A., 6.000%, 9/30/2034		3,153,946
	7,955,000	Telecom Italia Capital S.A., 6.375%, 11/15/2033		8,094,212

See accompanying notes to financial statements.

|  26

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Wirelines — continued
$	525,000	Telefonica Emisiones SAU, 5.134%, 4/27/2020	$	578,731
	975,000	Telefonica Emisiones SAU, 5.462%, 2/16/2021		1,107,167
	4,100,000	Telefonica Emisiones SAU, EMTN, 5.289%, 12/09/2022, (GBP)		6,468,491
	9,100,000	Telefonica Emisiones SAU, EMTN, 5.375%, 2/02/2026, (GBP)		15,109,461
	14,137,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		10,955,407
	54,665,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)		45,900,767
	32,509,000	Verizon Communications, Inc., 2.450%, 11/01/2022		33,016,140
				308,739,369
		Total Non-Convertible Bonds (Identified Cost $6,043,636,520)		6,026,086,837
	Convertible Bonds — 5.7%
		Finance Companies — 0.1%
	3,905,000	Euronet Worldwide, Inc., 1.500%, 10/01/2044		4,915,419
		Midstream — 0.1%
	5,470,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		5,435,813
		Property & Casualty Insurance — 0.8%
	49,186,000	Old Republic International Corp., 3.750%, 3/15/2018		59,053,941
		Technology — 4.7%
	137,016,000	Intel Corp., 3.250%, 8/01/2039		250,568,010
	11,515,000	Lam Research Corp., Series B, 1.250%, 5/15/2018		18,330,441
	357,678	Liberty Interactive LLC, 3.500%, 1/15/2031		332,707
	46,000,000	Priceline Group, Inc. (The), 0.900%, 9/15/2021		49,392,500
				318,623,658
		Total Convertible Bonds (Identified Cost $250,625,225)		388,028,831
	Municipals — 0.3%
		Illinois — 0.1%
	9,150,000	State of Illinois, 5.100%, 6/01/2033		8,820,600
		Michigan — 0.0%
	2,240,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034		2,198,179
		Virginia — 0.2%
	10,740,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046		9,224,371
		Total Municipals (Identified Cost $19,890,797)		20,243,150
		Total Bonds and Notes (Identified Cost $6,314,152,542)		6,434,358,818

See accompanying notes to financial statements.

27  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Principal Amount (‡)		Description	Value (†)
	Senior Loans — 0.4%
		Finance Companies — 0.4%
$	18,424,763	AWAS Finance Luxembourg 2012 S.A., New Term Loan, 3.500%, 7/16/2018(d)	$	18,482,432
	9,663,113	AWAS Finance Luxembourg S.a.r.l., Term Loan B, 4.100%, 6/10/2018(d)		9,699,350
				28,181,782
		Total Senior Loans (Identified Cost $28,050,683)		28,181,782
Shares
	Common Stocks — 0.9%
		Automobiles — 0.7%
	4,063,816	Ford Motor Co.		49,050,259
		Metals & Mining — 0.0%
	532,399	ArcelorMittal, (Registered)(j)		3,215,690
		REITs – Diversified — 0.2%
	322,350	Weyerhaeuser Co.		10,295,859
		Total Common Stocks (Identified Cost $50,980,763)		62,561,808
	Preferred Stocks — 0.0%
		Midstream — 0.0%
	43,031	Chesapeake Energy Corp., 5.000%(j) (Identified Cost $3,673,619)		1,844,954
Principal Amount (‡)
	Short-Term Investments — 4.9%
$	329,519,146	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $329,519,970 on 10/03/2016 collateralized by $311,575,000 U.S. Treasury Note, 2.500% due 8/15/2023 valued at $336,111,531 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $329,519,146)		329,519,146
		Total Investments — 101.0% (Identified Cost $6,726,376,753)(a)		6,856,466,508
		Other assets less liabilities — (1.0)%		(70,879,330	)
		Net Assets — 100.0%	$	6,785,587,178
	(‡)	Principal Amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 25.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.

See accompanying notes to financial statements.

|  28

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

(a)	Federal Tax Information:
	At September 30, 2016, the net unrealized appreciation on investments based on a cost of $6,835,472,360 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	$	486,048,199
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(465,054,051	)
	Net unrealized appreciation	$	20,994,148
(b)	Illiquid security. (Unaudited)
(c)	Securities classified as fair valued pursuant to the Fund’s pricing policies and procedures. At September 30, 2016, the value of these securities amounted to $182,237,402 or 2.7% of net assets. See Note 2 of Notes to Financial Statements.
(d)	Variable rate security. Rate as of September 30, 2016 is disclosed.
(e)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(f)	Perpetual bond with no specified maturity date.
(g)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
(h)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities.
(i)	Fair valued by the Fund’s adviser. At September 30, 2016, the value of this security amounted to $676 or less than 0.1% of net assets. See Note 2 of Notes to Financial Statements.
(j)	Non-income producing security.
144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2016, the value of Rule 144A holdings amounted to $890,371,137 or 13.1% of net assets.
ABS	Asset-Backed Securities
EMTN	Euro Medium Term Note
FHLMC	Federal Home Loan Mortgage Corp.
FNMA	Federal National Mortgage Association
GMTN	Global Medium Term Note
MTN	Medium Term Note
PIK	Payment-in-Kind
PJSC	Private Joint-Stock Company
REITs	Real Estate Investment Trusts
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
EUR	Euro
GBP	British Pound
ISK	Icelandic Krona
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar

See accompanying notes to financial statements.

29  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Investment Grade Bond Fund – (continued)

Industry Summary at September 30, 2016

Treasuries	27.5	%
Banking	13.8
Technology	5.6
Wirelines	4.6
Finance Companies	4.1
Metals & Mining	3.2
Midstream	3.2
Local Authorities	2.5
Airlines	2.1
Other Investments, less than 2% each	29.5
Short-Term Investments	4.9
Total Investments	101.0
Other assets less liabilities	(1.0	)
Net Assets	100.0	%

Currency Exposure Summary at September 30, 2016

United States Dollar	70.5	%
Canadian Dollar	11.6
New Zealand Dollar	6.1
Mexican Peso	4.4
Australian Dollar	3.7
Norwegian Krone	3.3
Other, less than 2% each	1.4
Total Investments	101.0
Other assets less liabilities	(1.0	)
Net Assets	100.0	%

See accompanying notes to financial statements.

|  30

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 79.2% of Net Assets
	Non-Convertible Bonds — 71.3%
		ABS Other — 0.2%
$	19,857,608	GCA2014 Holdings Ltd., Series 2014-1, Class C, 6.000%, 1/05/2030, 144A(b)(c)	$	12,450,720
	7,738,581	GCA2014 Holdings Ltd., Series 2014-1, Class D, 7.500%, 1/05/2030, 144A(b)(c)		2,230,259
	42,000,000	GCA2014 Holdings Ltd., Series 2014-1, Class E, Zero Coupon, 1/05/2030, 144A(b)(c)(d)		588,000
	11,497,542	Global Container Assets Ltd., Series 2015-1A, Class B, 4.500%, 2/05/2030, 144A(c)(e)		11,243,882
				26,512,861
		Aerospace & Defense — 1.0%
	620,000	Bombardier, Inc., 7.350%, 12/22/2026, 144A, (CAD)		428,865
	11,800,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		10,103,750
	16,246,000	KLX, Inc., 5.875%, 12/01/2022, 144A		16,814,610
	22,548,000	Meccanica Holdings USA, Inc., 6.250%, 1/15/2040, 144A		22,097,040
	20,755,000	Meccanica Holdings USA, Inc., 7.375%, 7/15/2039, 144A		22,726,725
	5,310,000	Textron Financial Corp., (fixed rate to 2/15/2017, variable rate thereafter), 6.000%, 2/15/2067, 144A		3,776,738
	24,513,000	TransDigm, Inc., 6.500%, 7/15/2024		25,799,933
	17,765,000	TransDigm, Inc., 6.500%, 5/15/2025		18,497,806
				120,245,467
		Airlines — 2.9%
	13,620,000	Air Canada, 7.625%, 10/01/2019, 144A, (CAD)		10,777,340
	146,785,000	American Airlines Group, Inc., 5.500%, 10/01/2019, 144A		152,839,881
	12,417,134	American Airlines Pass Through Trust, Series 2013-1, Class A, 4.000%, 1/15/2027		13,206,491
	10,157,634	American Airlines Pass Through Trust, Series 2013-2, Class C, 6.000%, 1/15/2017, 144A		10,251,490
	2,527,717	Continental Airlines Pass Through Certificates, Series 2012-2, Class B, 5.500%, 4/29/2022		2,642,652
	21,015,000	Continental Airlines Pass Through Certificates, Series 2012-3, Class C, 6.125%, 4/29/2018		21,960,675
	136,151	Continental Airlines Pass Through Trust, Series 1997-4, Class B, 6.900%, 7/02/2018		137,853
	440,970	Continental Airlines Pass Through Trust, Series 1999-1, Class B, 6.795%, 2/02/2020		456,668
	930	Continental Airlines Pass Through Trust, Series 1999-2, Class B, 7.566%, 9/15/2021		933
	638,848	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022		685,963
	2,769,848	Continental Airlines Pass Through Trust, Series 2012-1, Class B, 6.250%, 10/11/2021		2,970,662
	702,047	Northwest Airlines, Inc., Series 2002-1, Class G2, (MBIA insured), 6.264%, 5/20/2023		760,879
	235,747	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		236,030

See accompanying notes to financial statements.

31  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Airlines — continued
$	7,597,206	US Airways Pass Through Trust, Series 2010-1B, Class B, 8.500%, 10/22/2018	$	7,839,329
	36,614,098	US Airways Pass Through Trust, Series 2011-1B, Class B, 9.750%, 4/22/2020		40,552,677
	5,784,370	US Airways Pass Through Trust, Series 2012-1B, Class B, 8.000%, 4/01/2021		6,406,190
	48,950,000	Virgin Australia Holdings Ltd., 8.500%, 11/15/2019, 144A		50,418,500
	3,800,269	Virgin Australia Pass Through Trust, Series 2013-1B, 6.000%, 4/23/2022, 144A		3,857,273
	5,692,148	Virgin Australia Pass Through Trust, Series 2013-1C, 7.125%, 10/23/2018, 144A		5,763,300
				331,764,786
		Automotive — 0.3%
	1,220,000	Ford Motor Co., 6.625%, 2/15/2028		1,461,841
	1,345,000	Ford Motor Co., 7.500%, 8/01/2026		1,719,309
	4,977,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		5,437,373
	26,055,000	Midas Intermediate Holdco II LLC/Midas Intermediate Holdco II Finance, Inc., 7.875%, 10/01/2022, 144A		26,510,962
				35,129,485
		Banking — 5.8%
	6,000,000	Ally Financial, Inc., 8.000%, 11/01/2031		7,395,000
	7,045,000	Bank of America Corp., MTN, 3.300%, 1/11/2023		7,292,759
	265,000	Bank of America Corp., MTN, 4.250%, 10/22/2026		281,149
	1,500,000	Bank of America Corp., Series K, (fixed rate to 1/30/2018, variable rate thereafter), 8.000%(f)		1,530,000
	10,000,000	Bank of Nova Scotia, 2.462%, 3/14/2019, (CAD)		7,827,280
	57,792,000,000	Barclays Financial LLC, EMTN, 3.500%, 11/29/2016, (KRW)		52,629,209
	36,445,000	Citigroup, Inc., 5.130%, 11/12/2019, (NZD)		27,829,648
	22,091,000	Citigroup, Inc., 6.250%, 6/29/2017, (NZD)		16,444,966
	3,450,000	Cooperatieve Rabobank UA, 3.950%, 11/09/2022		3,616,556
	25,000,000	Goldman Sachs Group, Inc. (The), 3.550%, 2/12/2021, (CAD)		20,165,784
	9,090,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		9,262,955
	19,245,000	Intesa Sanpaolo SpA, 5.017%, 6/26/2024, 144A		17,562,333
	45,620,000	JPMorgan Chase & Co., 4.250%, 11/02/2018, (NZD)		33,926,425
	800,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		943,000
	36,195,000	Morgan Stanley, 4.350%, 9/08/2026		38,641,854
	35,325,000	Morgan Stanley, 4.750%, 11/16/2018, (AUD)		28,101,553
	185,000,000	Morgan Stanley, 5.000%, 9/30/2021, (AUD)		153,161,568
	74,310,000	Morgan Stanley, 7.600%, 8/08/2017, (NZD)		55,995,888
	100,265,000	Morgan Stanley, 8.000%, 5/09/2017, (AUD)		79,126,344
	950,000	Morgan Stanley, EMTN, 5.750%, 2/14/2017, (GBP)		1,252,679
	46,735,000	Morgan Stanley, MTN, 4.100%, 5/22/2023		49,411,093
	10,000,000	Morgan Stanley, MTN, 6.250%, 8/09/2026		12,537,630
	53,095,000	Morgan Stanley, Series MPLE, 3.125%, 8/05/2021, (CAD)		42,266,769
				667,202,442

See accompanying notes to financial statements.

|  32

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Brokerage — 1.0%
$	5,000,000	Jefferies Finance LLC/JFIN Co-Issuer Corp., 6.875%, 4/15/2022, 144A	$	4,650,000
	22,540,000	Jefferies Finance LLC/JFIN Co-Issuer Corp., 7.500%, 4/15/2021, 144A		21,920,150
	43,025,000	Jefferies Group LLC, 5.125%, 1/20/2023		45,838,491
	20,010,000	Jefferies Group LLC, 6.250%, 1/15/2036		20,855,963
	15,215,000	Jefferies Group LLC, 6.450%, 6/08/2027		17,224,901
				110,489,505
		Building Materials — 0.5%
	19,945,000	Atrium Windows & Doors, Inc., 7.750%, 5/01/2019, 144A		17,925,569
	6,995,000	Masco Corp., 6.500%, 8/15/2032		7,694,500
	3,755,000	Masco Corp., 7.125%, 3/15/2020		4,318,250
	2,630,000	Masco Corp., 7.750%, 8/01/2029		3,142,850
	2,000,000	NCI Building Systems, Inc., 8.250%, 1/15/2023, 144A		2,175,000
	18,640,000	Owens Corning, 7.000%, 12/01/2036		23,530,800
				58,786,969
		Cable Satellite — 1.2%
	850,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.125%, 5/01/2023, 144A		887,188
	975,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.375%, 5/01/2025, 144A		1,022,531
	3,315,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.750%, 1/15/2024		3,522,188
	4,360,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.875%, 5/01/2027, 144A		4,643,400
	17,679,000	DISH DBS Corp., 5.875%, 11/15/2024		17,458,012
	25,270,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		21,137,080
	4,835,000	Time Warner Cable LLC, 4.500%, 9/15/2042		4,613,842
	135,000	Time Warner Cable LLC, 5.875%, 11/15/2040		149,916
	44,800,000	UPC Holding BV, 6.375%, 9/15/2022, 144A, (EUR)		53,345,615
	11,275,000	Videotron Ltd., 5.625%, 6/15/2025, 144A, (CAD)		8,830,415
	7,000,000	Virgin Media Finance PLC, 6.000%, 10/15/2024, 144A		7,245,070
	20,300,000	VTR Finance BV, 6.875%, 1/15/2024, 144A		21,203,350
				144,058,607
		Chemicals — 3.3%
	19,810,000	Aruba Investments, Inc., 8.750%, 2/15/2023, 144A		20,206,200
	99,610,000	Chemours Co. (The), 6.625%, 5/15/2023		97,119,750
	18,370,000	Chemours Co. (The), 7.000%, 5/15/2025		18,048,525
	85,854,000	Consolidated Energy Finance S.A., 6.750%, 10/15/2019, 144A		84,780,825
	20,000,000	Eco Services Operations LLC/Eco Finance Corp., 8.500%, 11/01/2022, 144A		20,800,000
	20,070,000	Hercules, Inc., 6.500%, 6/30/2029		18,063,000
	26,164,000	Hexion, Inc., 7.875%, 2/15/2023(b)(c)		9,419,040
	6,010,000	Hexion, Inc., 8.875%, 2/01/2018		5,724,525
	8,757,000	Hexion, Inc., 9.200%, 3/15/2021(b)(c)		3,415,230
	16,660,000	Hexion, Inc./Hexion Nova Scotia Finance ULC, 9.000%, 11/15/2020		12,057,675
	90,205,000	INVISTA Finance LLC, 4.250%, 10/15/2019, 144A		89,761,191
	885,000	TPC Group, Inc., 8.750%, 12/15/2020, 144A		686,362
				380,082,323
		Construction Machinery — 0.2%
	840,000	Joy Global, Inc., 6.625%, 11/15/2036		990,679
	5,105,000	United Rentals North America, Inc., 5.750%, 11/15/2024		5,296,438
	11,655,000	United Rentals North America, Inc., 7.625%, 4/15/2022		12,412,575
				18,699,692

See accompanying notes to financial statements.

33  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Consumer Cyclical Services — 0.1%
$	670,000	ServiceMaster Co. LLC (The), 7.100%, 3/01/2018	$	690,938
	5,500,000	ServiceMaster Co. LLC (The), 7.450%, 8/15/2027		5,846,500
				6,537,438
		Consumer Products — 0.1%
	11,545,000	Avon Products, Inc., 8.950%, 3/15/2043		9,438,038
		Diversified Manufacturing — 0.5%
	57,000,000	General Electric Co., GMTN, 4.250%, 1/17/2018, (NZD)		42,127,380
	25,320,000	General Electric Co., Series A, GMTN, 5.500%, 2/01/2017, (NZD)		18,580,533
				60,707,913
		Electric — 1.3%
	5,093,000	AES Corp. (The), 4.875%, 5/15/2023		5,169,395
	9,505,000	AES Corp. (The), 5.500%, 3/15/2024		9,891,093
	10,185,000	AES Corp. (The), 5.500%, 4/15/2025		10,477,819
	37,660,419	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		38,530,902
	49,217,455	Bruce Mansfield Unit Pass Through Trust, 6.850%, 6/01/2034(c)(e)		25,060,544
	1,247,846	CE Generation LLC, 7.416%, 12/15/2018		1,166,736
	3,892,000	DPL, Inc., 6.750%, 10/01/2019		4,037,950
	19,705,000	Dynegy, Inc., 7.625%, 11/01/2024		19,350,310
	29,959,000	EDP Finance BV, 4.125%, 1/15/2020, 144A		31,052,504
	3,570,000	Empresa Nacional de Electricidad S.A., 7.875%, 2/01/2027		4,436,211
	555,000	Enersis Americas S.A., 7.400%, 12/01/2016		559,000
	407,451	Red Oak Power LLC, Series A, 8.540%, 11/30/2019		407,961
				150,140,425
		Finance Companies — 4.1%
	4,095,000	iStar, Inc., 4.875%, 7/01/2018		4,115,475
	14,060,000	iStar, Inc., 5.000%, 7/01/2019		14,023,163
	23,175,000	iStar, Inc., 5.850%, 3/15/2017		23,451,733
	10,400,000	iStar, Inc., 7.125%, 2/15/2018		10,842,000
	19,915,000	Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 7.375%, 10/01/2017		20,064,363
	2,260,000	Navient Corp., 5.875%, 10/25/2024		2,056,600
	19,155,000	Navient Corp., MTN, 6.125%, 3/25/2024		17,838,094
	23,020,000	Navient LLC, 4.875%, 6/17/2019		22,933,675
	22,945,000	Navient LLC, 5.500%, 1/25/2023		21,052,037
	109,950(††)	Navient LLC, 6.000%, 12/15/2043		2,526,101
	5,910,000	Navient LLC, MTN, 4.625%, 9/25/2017		5,998,650
	7,780,000	Navient LLC, MTN, 5.500%, 1/15/2019		7,896,700
	17,600,000	Navient LLC, MTN, 7.250%, 1/25/2022		17,952,000
	2,160,000	Navient LLC, MTN, 8.000%, 3/25/2020		2,316,600
	14,465,000	Navient LLC, Series A, MTN, 5.000%, 6/15/2018		14,465,000
	50,910,000	Navient LLC, Series A, MTN, 5.625%, 8/01/2033(c)(e)		40,473,450
	51,680,000	Springleaf Finance Corp., 5.250%, 12/15/2019		52,778,200
	133,915,000	Springleaf Finance Corp., 7.750%, 10/01/2021		140,443,356
	55,015,000	Springleaf Finance Corp., 8.250%, 10/01/2023		57,765,750
				478,992,947

See accompanying notes to financial statements.

|  34

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Food & Beverage — 0.0%
$	4,880,000	Shearer’s Foods LLC/Chip Finance Corp., 9.000%, 11/01/2019, 144A	$	5,119,120
		Government Owned – No Guarantee — 0.6%
	22,160,000	Pertamina Persero PT, 6.450%, 5/30/2044, 144A		25,670,122
	21,145,000	Petrobras Global Finance BV, 4.375%, 5/20/2023		18,914,202
	30,955,000	Petrobras Global Finance BV, 5.625%, 5/20/2043		23,371,025
				67,955,349
		Healthcare — 2.6%
	2,160,000	BioScrip, Inc., 8.875%, 2/15/2021		2,019,600
	40,686,000	HCA, Inc., 5.875%, 5/01/2023		43,330,590
	14,620,000	HCA, Inc., 7.050%, 12/01/2027		15,552,025
	20,447,000	HCA, Inc., 7.500%, 12/15/2023		22,670,611
	24,215,000	HCA, Inc., 7.500%, 11/06/2033		26,243,006
	43,928,000	HCA, Inc., 7.690%, 6/15/2025		49,371,118
	32,745,000	HCA, Inc., 8.360%, 4/15/2024		38,019,565
	10,815,000	HCA, Inc., MTN, 7.580%, 9/15/2025		12,193,913
	9,492,000	HCA, Inc., MTN, 7.750%, 7/15/2036		10,286,955
	955,000	Tenet Healthcare Corp., 4.375%, 10/01/2021		950,225
	29,130,000	Tenet Healthcare Corp., 5.000%, 3/01/2019		28,474,575
	25,530,000	Tenet Healthcare Corp., 6.750%, 6/15/2023		23,742,900
	33,559,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		27,602,278
				300,457,361
		Home Construction — 0.9%
	3,075,000	Beazer Homes USA, Inc., 7.250%, 2/01/2023		3,059,625
	13,360,000	K. Hovnanian Enterprises, Inc., 5.000%, 11/01/2021(c)(e)		9,352,000
	29,735,000	K. Hovnanian Enterprises, Inc., 8.000%, 11/01/2019, 144A		17,989,675
	3,620,000	KB Home, 4.750%, 5/15/2019		3,696,925
	47,260,000	PulteGroup, Inc., 6.000%, 2/15/2035		47,732,600
	13,190,000	PulteGroup, Inc., 6.375%, 5/15/2033		13,739,587
	10,305,000	TRI Pointe Holdings, Inc./TRI Pointe Group, Inc., 4.375%, 6/15/2019		10,601,269
	195,000	TRI Pointe Holdings, Inc./TRI Pointe Group, Inc., 5.875%, 6/15/2024		202,800
				106,374,481
		Independent Energy — 1.8%
	595,000	Anadarko Petroleum Corp., 3.450%, 7/15/2024		586,909
	540,000	Anadarko Petroleum Corp., 4.500%, 7/15/2044		495,449
	4,810,000	Antero Resources Corp., 5.625%, 6/01/2023		4,900,187
	7,550,000	Baytex Energy Corp., 5.125%, 6/01/2021, 144A		6,285,375
	6,930,000	Baytex Energy Corp., 5.625%, 6/01/2024, 144A		5,647,950
	15,000,000	Bellatrix Exploration Ltd., 8.500%, 5/15/2020, 144A		13,950,000
	1,705,000	Bonanza Creek Energy, Inc., 6.750%, 4/15/2021		775,775
	8,645,000	California Resources Corp., 5.500%, 9/15/2021		4,581,850
	1,188,000	California Resources Corp., 6.000%, 11/15/2024		567,270
	1,310,000	Chesapeake Energy Corp., 4.875%, 4/15/2022		1,103,675
	55,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		51,425
	6,505,000	Continental Resources, Inc., 3.800%, 6/01/2024		5,952,075
	1,225,000	Continental Resources, Inc., 4.500%, 4/15/2023		1,176,000
	19,290,000	Eclipse Resources Corp., 8.875%, 7/15/2023		18,795,694

See accompanying notes to financial statements.

35  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Independent Energy — (continued)
$	1,022,000	Noble Energy, Inc., 5.625%, 5/01/2021	$	1,068,062
	1,940,000	Oasis Petroleum, Inc., 6.875%, 1/15/2023		1,852,700
	7,170,000	Pan American Energy LLC/Argentine Branch, 7.875%, 5/07/2021, 144A		7,689,825
	2,055,000	QEP Resources, Inc., 5.250%, 5/01/2023		2,024,175
	5,470,000	QEP Resources, Inc., 6.875%, 3/01/2021		5,702,475
	17,187,000	Rex Energy Corp., (Step to 8.000% on 10/01/2017), 1.000%, 10/01/2020(g)		9,366,915
	6,250,000	Rice Energy, Inc., 6.250%, 5/01/2022		6,453,125
	7,200,000	RSP Permian, Inc., 6.625%, 10/01/2022		7,542,000
	17,908,000	Sanchez Energy Corp., 6.125%, 1/15/2023		14,371,170
	9,520,000	Sanchez Energy Corp., 7.750%, 6/15/2021		8,377,600
	8,241,000	SM Energy Co., 5.000%, 1/15/2024		7,746,540
	22,844,000	SM Energy Co., 6.125%, 11/15/2022		22,844,000
	801,000	SM Energy Co., 6.500%, 11/15/2021		819,023
	2,522,000	SM Energy Co., 6.500%, 1/01/2023		2,547,220
	44,795,000	Ultra Petroleum Corp., 6.125%, 10/01/2024, 144A(h)		35,388,050
	10,845,000	Whiting Petroleum Corp., 5.000%, 3/15/2019		10,492,537
	3,855,000	Whiting Petroleum Corp., 5.750%, 3/15/2021		3,604,425
	945,000	Whiting Petroleum Corp., 6.250%, 4/01/2023		862,312
				213,621,788
		Industrial Other — 0.1%
	6,880,000	Broadspectrum Ltd., 8.375%, 5/15/2020, 144A		7,327,200
		Integrated Energy — 0.0%
	5,385,000	Pacific Exploration and Production Corp., 5.125%, 3/28/2023, 144A(h)		996,225
	3,125,000	Pacific Exploration and Production Corp., 5.625%, 1/19/2025, 144A(h)		578,125
				1,574,350
		Life Insurance — 0.8%
	15,000,000	Forethought Financial Group, Inc., 8.625%, 4/15/2021, 144A(c)(e)		17,246,400
	3,695,000	Genworth Holdings, Inc., 4.800%, 2/15/2024		3,039,137
	27,200,000	Genworth Holdings, Inc., 4.900%, 8/15/2023		22,644,000
	10,990,000	Genworth Holdings, Inc., 6.500%, 6/15/2034		8,956,850
	1,225,000	Genworth Holdings, Inc., (fixed rate to 11/15/2016, variable rate thereafter), 6.150%, 11/15/2066		548,188
	20,000,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A(c)(e)		30,669,600
	8,920,000	NLV Financial Corp., 7.500%, 8/15/2033, 144A(c)(e)		10,289,184
				93,393,359
		Local Authorities — 1.3%
	95,480,000	New South Wales Treasury Corp., 4.000%, 4/08/2021, (AUD)		80,053,813
	82,840,000	New South Wales Treasury Corp., 6.000%, 2/01/2018, (AUD)		66,974,959
				147,028,772
		Media Entertainment — 1.2%
	111,590,000	Grupo Televisa SAB, EMTN, 7.250%, 5/14/2043, (MXN)		4,989,121
	64,250,000	iHeartCommunications, Inc., 9.000%, 3/01/2021		47,866,250
	33,370,000	iHeartCommunications, Inc., 9.000%, 9/15/2022		24,276,675
	7,180,000	Outfront Media Capital LLC/Outfront Media Capital Corp., 5.250%, 2/15/2022		7,467,200

See accompanying notes to financial statements.

|  36

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Media Entertainment — (continued)
$	17,950,000	Outfront Media Capital LLC/Outfront Media Capital Corp., 5.875%, 3/15/2025	$	18,847,500
	27,185,000	R.R. Donnelley & Sons Co., 6.000%, 4/01/2024		26,981,112
	2,410,000	R.R. Donnelley & Sons Co., 6.500%, 11/15/2023		2,428,075
	283,000	R.R. Donnelley & Sons Co., 7.000%, 2/15/2022		293,613
	5,925,000	R.R. Donnelley & Sons Co., 7.875%, 3/15/2021		6,473,063
				139,622,609
		Metals & Mining — 2.0%
	8,202,122	1839688 Alberta ULC, PIK, 14.000%, 2/13/2020(b)(c)(h)(i)		3,281
	2,000,000	AK Steel Corp., 7.625%, 10/01/2021		1,920,000
	3,949,000	Alcoa, Inc., 5.870%, 2/23/2022		4,245,175
	5,075,000	Alcoa, Inc., 5.900%, 2/01/2027		5,430,250
	1,405,000	Alcoa, Inc., 5.950%, 2/01/2037		1,412,728
	4,330,000	Alcoa, Inc., 6.750%, 1/15/2028		4,730,525
	25,271,000	ArcelorMittal, 7.750%, 3/01/2041		26,345,017
	30,695,000	Barminco Finance Pty Ltd., 9.000%, 6/01/2018, 144A		29,697,412
	8,705,000	Barrick North America Finance LLC, 5.750%, 5/01/2043		10,207,814
	23,112,000	Cliffs Natural Resources, Inc., 8.000%, 9/30/2020, 144A		22,649,760
	26,350,000	Essar Steel Algoma, Inc., 9.500%, 11/15/2019, 144A(c)(e)(h)		3,557,250
	12,315,000	First Quantum Minerals Ltd., 7.250%, 5/15/2022, 144A		10,898,775
	14,645,000	Lundin Mining Corp., 7.500%, 11/01/2020, 144A		15,560,312
	51,000,000	Lundin Mining Corp., 7.875%, 11/01/2022, 144A		54,315,000
	4,200,000	Rain CII Carbon LLC/CII Carbon Corp., 8.250%, 1/15/2021, 144A		4,095,000
	16,135,000	Russel Metals, Inc., 6.000%, 4/19/2022, 144A, (CAD)		12,390,726
	11,719,000	United States Steel Corp., 6.650%, 6/01/2037		9,375,200
	4,835,000	United States Steel Corp., 6.875%, 4/01/2021		4,786,650
	2,655,000	United States Steel Corp., 7.375%, 4/01/2020		2,641,725
	10,000,000	Worthington Industries, Inc., 6.500%, 4/15/2020		11,111,440
				235,374,040
		Midstream — 0.2%
	8,935,000	IFM U.S. Colonial Pipeline 2 LLC, 6.450%, 5/01/2021, 144A		10,087,481
	505,000	NGPL PipeCo LLC, 7.768%, 12/15/2037, 144A		547,925
	3,350,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 4.125%, 11/15/2019		3,396,900
	9,440,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 5.000%, 1/15/2018		9,770,400
	3,185,492	Transportadora de Gas del Sur S.A., 9.625%, 5/14/2020, 144A		3,448,295
				27,251,001
		Non-Agency Commercial Mortgage-Backed Securities — 1.2%
	25,206,565	Commercial Mortgage Pass Through Certificates, Series 2014-FL4, Class AR1, 2.225%, 5/13/2031, 144A(c)(e)(j)		25,037,540
	12,902,000	Commercial Mortgage Pass Through Certificates, Series 2014-FL4, Class AR2, 2.725%, 5/13/2031, 144A(c)(e)(j)		12,908,714
	8,622,000	Commercial Mortgage Pass Through Certificates, Series 2014-FL4, Class AR3, 3.175%, 5/13/2031, 144A(c)(e)(j)		8,692,151

See accompanying notes to financial statements.

37  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Non-Agency Commercial Mortgage-Backed Securities — continued
$	16,080,000	Commercial Mortgage Pass Through Certificates, Series 2014-FL4, Class AR4, 4.275%, 5/13/2031, 144A(c)(e)(j)	$	15,692,171
	35,060,000	GS Mortgage Securities Trust, Series 2007-GG10, Class AM, 5.988%, 8/10/2045(j)		33,746,197
	12,334,199	Institutional Mortgage Securities Canada, Inc., Series 2014-5A, Class A1, 2.003%, 7/12/2047, 144A, (CAD)		9,327,153
	29,977,241	Motel 6 Trust, Series 2015-M6MZ, Class M, 8.230%, 2/05/2020, 144A(c)(e)		30,173,967
				135,577,893
		Oil Field Services — 0.7%
	19,335,000	FTS International, Inc., 6.250%, 5/01/2022		7,395,638
	7,120,000	Global Marine, Inc., 7.000%, 6/01/2028		4,984,000
	17,482,000	Paragon Offshore PLC, 6.750%, 7/15/2022, 144A(h)		4,851,255
	40,403,000	Paragon Offshore PLC, 7.250%, 8/15/2024, 144A(h)		11,211,832
	18,385,000	Pioneer Energy Services Corp., 6.125%, 3/15/2022		12,134,100
	12,020,000	Precision Drilling Corp., 5.250%, 11/15/2024		9,796,300
	594,000	Precision Drilling Corp., 6.500%, 12/15/2021		537,570
	2,590,000	Precision Drilling Corp., 6.625%, 11/15/2020		2,402,225
	500,000	Sidewinder Drilling, Inc., 9.750%, 11/15/2019, 144A		32,500
	39,300,000	Transocean, Inc., 5.050%, 10/15/2022		30,801,375
	1,320,000	Transocean, Inc., 6.800%, 3/15/2038		864,600
				85,011,395
		Packaging — 0.0%
	1,705,000	Signode Industrial Group Lux S.A./Signode Industrial Group U.S., Inc., 6.375%, 5/01/2022, 144A		1,726,313
		Paper — 0.4%
	15,225,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		21,787,660
	4,865,000	WestRock MWV LLC, 7.950%, 2/15/2031		6,559,445
	8,750,000	WestRock MWV LLC, 8.200%, 1/15/2030		11,931,124
	2,840,000	Weyerhaeuser Co., 6.950%, 10/01/2027		3,530,680
				43,808,909
		Property & Casualty Insurance — 0.2%
	12,510,000	MBIA Insurance Corp., 11.940%, 1/15/2033, 144A(d)(j)		5,004,000
	1,225,000	Old Republic International Corp., 4.875%, 10/01/2024		1,324,578
	3,000,000	Sirius International Group, (fixed rate to 6/30/2017, variable rate thereafter), 7.506%, 144A(f)		3,019,200
	17,870,000	XL Group PLC, (fixed rate to 4/15/2017, variable rate thereafter), 6.500%(f)		13,399,998
				22,747,776
		Railroads — 0.0%
	1,153,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(c)(e)		1,127,395
		Restaurants — 0.0%
	1,330,000	Wagamama Finance PLC, 7.875%, 2/01/2020, 144A, (GBP)		1,812,227
		Retailers — 0.9%
	3,325,000	Dillard’s, Inc., 7.000%, 12/01/2028		3,806,926
	1,500,000	Dillard’s, Inc., 7.750%, 7/15/2026		1,726,950

See accompanying notes to financial statements.

|  38

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Retailers — continued
$	10,270,000	Foot Locker, Inc., 8.500%, 1/15/2022	$	12,118,600
	830,000	J.C. Penney Corp., Inc., 5.650%, 6/01/2020		831,975
	3,335,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		3,451,725
	27,224,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		23,412,640
	2,510,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		2,070,750
	8,170,000	J.C. Penney Corp., Inc., 8.125%, 10/01/2019		8,905,300
	12,275,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		14,147,846
	6,365,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		7,936,264
	3,765,000	Nine West Holdings, Inc., 6.125%, 11/15/2034		489,450
	22,871,000	TRU Taj LLC/TRU Taj Finance, Inc., 12.000%, 8/15/2021, 144A		23,042,532
				101,940,958
		Sovereigns — 1.8%
	206,715,000	Portugal Government International Bond, 5.125%, 10/15/2024, 144A		205,903,023
		Supermarkets — 1.8%
	4,555,000	Albertson’s Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, 6.625%, 6/15/2024, 144A		4,737,200
	79,276,000	New Albertson’s, Inc., 7.450%, 8/01/2029		77,690,480
	25,595,000	New Albertson’s, Inc., 7.750%, 6/15/2026		25,499,019
	24,085,000	New Albertson’s, Inc., 8.000%, 5/01/2031		23,753,831
	5,815,000	New Albertson’s, Inc., 8.700%, 5/01/2030		5,902,225
	16,482,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		15,163,440
	34,580,000	SUPERVALU, Inc., 6.750%, 6/01/2021		32,332,300
	23,400,000	SUPERVALU, Inc., 7.750%, 11/15/2022		22,347,000
				207,425,495
		Supranational — 0.2%
	24,450,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		18,548,927
		Technology — 1.5%
	4,537,000	Advanced Micro Devices, Inc., 7.000%, 7/01/2024		4,457,603
	44,160,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		48,852,000
	34,955,000	Amkor Technology, Inc., 6.375%, 10/01/2022		36,091,037
	56,340,000	KLA-Tencor Corp., 4.650%, 11/01/2024		61,911,857
	15,170,000	KLA-Tencor Corp., 5.650%, 11/01/2034		16,889,398
	2,562,000	Motorola Solutions, Inc., 6.625%, 11/15/2037		2,653,950
	180,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		229,652
				171,085,497
		Transportation Services — 0.1%
	10,503,000	APL Ltd., 8.000%, 1/15/2024(c)(e)		6,931,980
	2,829,266	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 1/02/2018(b)		2,878,778
	2,081,009	Atlas Air Pass Through Trust, Series 1998-1, Class C, 8.010%, 7/02/2011(b)(k)		2,127,831
	1,374,422	Atlas Air Pass Through Trust, Series 1999-1, Class B, 7.630%, 1/02/2018(b)		1,374,422
	2,274,100	Atlas Air Pass Through Trust, Series 1999-1, Class C, 8.770%, 7/02/2012(b)(k)		2,342,323
	1,816,946	Atlas Air Pass Through Trust, Series 2000-1, Class B, 9.057%, 1/02/2018(b)		1,844,200
				17,499,534

See accompanying notes to financial statements.

39  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Treasuries — 23.3%
	312,000,000	Canadian Government, 0.750%, 9/01/2020, (CAD)	$	239,476,261
	29,490,000	Canadian Government, 1.250%, 9/01/2018, (CAD)		22,795,155
	80,645,000	Canadian Government, 1.750%, 9/01/2019, (CAD)		63,643,132
	6,710,000	Hellenic Republic Government Bond, 3.375%, 7/17/2017, 144A, (EUR)		7,369,509
	1,010,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2024, (EUR)(g)		829,591
	1,100,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2035, (EUR)(g)		727,835
	4,000,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2036, (EUR)(g)		2,655,418
	4,455,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2037, (EUR)(g)		2,936,313
	5,820,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2038, (EUR)(g)		3,797,235
	4,000,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2039, (EUR)(g)		2,613,036
	4,680,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2040, (EUR)(g)		3,048,746
	5,970,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2041, (EUR)(g)		3,896,094
	4,000,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2042, (EUR)(g)		2,620,882
	3,842,906,000	Iceland Government International Bond, 6.000%, 10/13/2016, (ISK)		22,871,009
	1,605,660,000	Iceland Government International Bond, 7.250%, 10/26/2022, (ISK)		10,561,037
	4,496,156,000	Iceland Government International Bond, 8.750%, 2/26/2019, (ISK)		28,850,334
	9,710,000(†††)	Mexican Fixed Rate Bonds, Series M, 5.000%, 6/15/2017, (MXN)		50,108,603
	9,930,439(†††)	Mexican Fixed Rate Bonds, Series M, 6.500%, 6/10/2021, (MXN)		52,764,447
	4,250,000(†††)	Mexican Fixed Rate Bonds, Series M, 7.750%, 5/29/2031, (MXN)		24,793,733
	7,740,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 7.500%, 6/03/2027, (MXN)		44,157,050
	27,224,481(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		157,848,425
	3,035,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.500%, 5/31/2029, (MXN)		18,704,560
	21,700,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 10.000%, 12/05/2024, (MXN)		141,380,960
	252,700,000	New Zealand Government Bond, 5.000%, 3/15/2019, (NZD)		197,518,989
	175,365,000	New Zealand Government Bond, 6.000%, 5/15/2021, (NZD)		150,389,071
	458,725,000	Norway Government Bond, 3.750%, 5/25/2021, 144A, (NOK)		64,788,179
	836,485,000	Norway Government Bond, 4.250%, 5/19/2017, 144A, (NOK)		107,030,446
	658,049,000	Norway Government Bond, 4.500%, 5/22/2019, 144A, (NOK)		90,369,176
	162,850,000	Republic of Brazil, 8.500%, 1/05/2024, (BRL)		46,256,380
	55,925,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		17,454,261
	60,000,000	U.S. Treasury Note, 0.375%, 10/31/2016		60,011,160
	325,000,000	U.S. Treasury Note, 0.500%, 11/30/2016		325,159,575
	275,000,000	U.S. Treasury Note, 0.500%, 7/31/2017		274,742,050
	300,000,000	U.S. Treasury Note, 0.625%, 11/15/2016		300,152,400
	150,000,000	U.S. Treasury Note, 0.750%, 9/30/2018		149,953,200
				2,692,274,252

See accompanying notes to financial statements.

|  40

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Wireless — 0.9%
	293,000,000	America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)	$	14,718,189
	134,600,000	America Movil SAB de CV, 8.460%, 12/18/2036, (MXN)		6,870,408
	31,041,000	Sprint Capital Corp., 6.875%, 11/15/2028		29,139,739
	6,260,000	Sprint Capital Corp., 8.750%, 3/15/2032		6,385,200
	21,052,000	Sprint Communications, Inc., 6.000%, 11/15/2022		19,525,730
	8,200,000	Sprint Corp., 7.125%, 6/15/2024		7,995,000
	23,641,000	Sprint Corp., 7.250%, 9/15/2021		23,729,654
				108,363,920
		Wirelines — 4.3%
	4,370,000	Bell Canada, MTN, 6.550%, 5/01/2029, 144A, (CAD)		4,298,452
	7,545,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		7,326,233
	64,380,000	CenturyLink, Inc., 6.450%, 6/15/2021		68,967,075
	765,000	CenturyLink, Inc., 7.650%, 3/15/2042		659,812
	7,410,000	CenturyLink, Inc., Series G, 6.875%, 1/15/2028		7,141,387
	2,965,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		2,579,550
	7,940,000	CenturyLink, Inc., Series W, 6.750%, 12/01/2023		8,257,600
	350,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		332,938
	3,620,000	Cincinnati Bell, Inc., 7.000%, 7/15/2024, 144A		3,710,500
	10,703,000	Consolidated Communications, Inc., 6.500%, 10/01/2022		10,381,910
	5,330,000	Embarq Corp., 7.995%, 6/01/2036		5,393,853
	37,225,000	FairPoint Communications, Inc., 8.750%, 8/15/2019, 144A		37,969,500
	16,755,000	Frontier Communications Corp., 6.250%, 9/15/2021		16,105,744
	18,725,000	Frontier Communications Corp., 6.875%, 1/15/2025		16,571,625
	38,336,000	Frontier Communications Corp., 7.875%, 1/15/2027		34,310,720
	25,745,000	Level 3 Communications, Inc., 5.750%, 12/01/2022		26,903,525
	4,667,000	Oi Brasil Holdings Cooperatief UA, 5.750%, 2/10/2022, 144A(h)		1,172,584
	16,550,000	Portugal Telecom International Finance BV, EMTN, 4.500%, 6/16/2025, (EUR)(d)		4,276,029
	29,750,000	Portugal Telecom International Finance BV, EMTN, 5.000%, 11/04/2019, (EUR)(d)		7,686,518
	42,460,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		40,124,700
	12,463,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		12,836,890
	32,395,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		31,423,150
	26,401,000	Qwest Corp., 6.875%, 9/15/2033		26,319,104
	39,171,000	Telecom Italia Capital S.A., 6.000%, 9/30/2034		38,789,083
	22,645,000	Telecom Italia Capital S.A., 6.375%, 11/15/2033		23,041,287
	31,690,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		24,558,029
	18,600,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)		15,617,932
	14,776,000	Verizon Communications, Inc., 2.450%, 11/01/2022		15,006,506
	1,225,000	Windstream Services LLC, 7.500%, 6/01/2022		1,176,000
	3,760,000	Windstream Services LLC, 7.500%, 4/01/2023		3,590,800
				496,529,036
		Total Non-Convertible Bonds (Identified Cost $8,813,142,291)		8,255,270,878

See accompanying notes to financial statements.

41  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
	Convertible Bonds — 6.5%
		Building Materials — 0.2%
$	9,592,000	CalAtlantic Group, Inc., 0.250%, 6/01/2019	$	8,884,590
	19,486,000	KB Home, 1.375%, 2/01/2019		18,950,135
				27,834,725
		Cable Satellite — 1.3%
	133,515,000	Dish Network Corp., 3.375%, 8/15/2026, 144A		146,198,925
		Chemicals — 0.0%
	4,305,000	RPM International, Inc., 2.250%, 12/15/2020		5,157,928
		Diversified Manufacturing — 0.1%
	4,727,000	Trinity Industries, Inc., 3.875%, 6/01/2036		5,648,765
		Leisure — 0.2%
	27,795,000	Rovi Corp., 0.500%, 3/01/2020		27,698,552
		Metals & Mining — 0.0%
	1,615,000	TimkenSteel Corp., 6.000%, 6/01/2021		1,774,481
		Midstream — 0.6%
	63,121,000	Chesapeake Energy Corp., 2.250%, 12/15/2038		58,781,431
	5,856,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		5,819,400
				64,600,831
		Pharmaceuticals — 0.0%
	1,655,000	BioMarin Pharmaceutical, Inc., 1.500%, 10/15/2020		2,063,578
		Property & Casualty Insurance — 0.5%
	44,291,000	Old Republic International Corp., 3.750%, 3/15/2018		53,176,882
		Technology — 3.6%
	4,200,000	Brocade Communications Systems, Inc., 1.375%, 1/01/2020		4,144,875
	7,185,000	Ciena Corp., 3.750%, 10/15/2018, 144A		9,089,025
	179,755,000	Intel Corp., 3.250%, 8/01/2039		328,726,956
	5,306,120	Liberty Interactive LLC, 3.500%, 1/15/2031		4,935,684
	12,820,000	Nuance Communications, Inc., 1.000%, 12/15/2035, 144A		11,153,400
	39,460,000	Nuance Communications, Inc., 1.500%, 11/01/2035		37,018,413
	10,415,000	Priceline Group, Inc. (The), 0.900%, 9/15/2021		11,183,106
	11,570,000	Viavi Solutions, Inc., 0.625%, 8/15/2033		11,512,150
				417,763,609
		Total Convertible Bonds (Identified Cost $579,971,419)		751,918,276
	Municipals — 1.4%
		District of Columbia — 0.0%
	3,850,000	Metropolitan Washington Airports Authority, Series D, 8.000%, 10/01/2047		5,315,657
		Illinois — 0.2%
	17,570,000	State of Illinois, 5.100%, 6/01/2033		16,937,480
		Michigan — 0.1%
	12,040,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034		11,815,213

See accompanying notes to financial statements.

|  42

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Puerto Rico — 0.4%
$	63,900,000	Commonwealth of Puerto Rico, GO, Refunding, Series A, 8.000%, 7/01/2035(h)	$	41,774,625
		Virginia — 0.7%
	97,200,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046		83,483,136
		Total Municipals (Identified Cost $180,366,721)		159,326,111
		Total Bonds and Notes (Identified Cost $9,573,480,431)		9,166,515,265
	Loan Participations — 0.1%
		ABS Other — 0.1%
	12,959,658	Rise Ltd., Series 2014-1, Class B, 6.500%, 2/15/2039 (c)(e)(j) (Identified Cost $13,056,856)		12,813,862
	Senior Loans — 2.0%
		Automotive — 0.2%
	21,970,760	IBC Capital Ltd., 1st Lien Term Loan, 4.985%, 9/09/2021(j)		21,513,109
	5,948,124	IBC Capital Ltd., 2nd Lien Term Loan, 8.000%, 9/09/2022(c)(e)(j)		5,368,182
				26,881,291
		Chemicals — 0.4%
	1,025,762	Ascend Performance Materials Operations LLC, Term Loan B, 6.500%, 8/12/2022(j)		1,010,376
	5,471,478	Emerald Performance Materials LLC, New 1st Lien Term Loan, 4.500%, 8/01/2021(j)		5,502,282
	6,147,386	Emerald Performance Materials LLC, New 2nd Lien Term Loan, 7.750%, 8/01/2022(j)		6,132,017
	31,355,000	Houghton International, Inc., New 2nd Lien Term Loan, 9.750%, 12/20/2020(j)		30,884,675
				43,529,350
		Construction Machinery — 0.3%
	43,779,750	Onsite U.S. Finco LLC, Term Loan, 5.500%, 7/30/2021(j)		33,929,306
		Consumer Cyclical Services — 0.5%
	29,436,134	SourceHov LLC, 2014 1st Lien Term Loan, 7.750%, 10/31/2019(j)		24,542,377
	43,000,000	SourceHov LLC, 2014 2nd Lien Term Loan, 11.500%, 4/30/2020(j)		27,520,000
				52,062,377
		Diversified Manufacturing — 0.1%
	9,830,009	Ameriforge Group, Inc., 1st Lien Term Loan, 5.000%, 12/19/2019(j)		5,504,805
		Financial Other — 0.1%
	12,945,657	DBRS Ltd., Term Loan, 6.250%, 3/04/2022(j)		12,694,900
		Industrial Other — 0.1%
	4,699,393	Eastman Kodak Co., Exit Term Loan, 7.250%, 9/03/2019(j)		4,670,022

See accompanying notes to financial statements.

43  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Principal Amount (‡)		Description	Value (†)
		Media Entertainment — 0.0%
$	1,950,549	Dex Media, Inc., Term Loan, 11.000%, 7/29/2021(j)	$	1,857,898
		Natural Gas — 0.0%
	1,370,992	Southcross Holdings Borrower LP, Exit Term Loan B, 3.500%, 4/13/2023(j)		1,144,778
		Oil Field Services — 0.1%
	2,618,182	FTS International, Inc., New Term Loan B, 5.750%, 4/16/2021(j)		1,028,945
	5,413,154	Paragon Offshore Finance Co., Term Loan B, 5.250%, 7/18/2021(h)(j)		1,305,924
	2,917,921	Petroleum Geo-Services ASA, New Term Loan B, 3.250%, 3/19/2021(j)		1,918,533
	2,760,596	UTEX Industries, Inc., 2nd Lien Term Loan 2014, 8.250%, 5/22/2022(j)		1,311,283
				5,564,685
		Other Utility — 0.0%
	1,298,000	PowerTeam Services LLC, 2nd Lien Term Loan, 8.250%, 11/06/2020(j)		1,291,510
		Retailers — 0.0%
	2,703,454	Toys “R” Us Property Co. I LLC, New Term Loan B, 6.000%, 8/21/2019(j)		2,544,626
		Technology — 0.1%
	4,070,400	Aptean, Inc., 2nd Lien Term Loan, 8.500%, 2/26/2021(j)		3,991,556
	9,507,380	IQOR U.S., Inc., 2nd Lien Term Loan, 9.750%, 4/01/2022(c)(e)(j)		6,702,703
				10,694,259
		Transportation Services — 0.0%
	3,641,872	OSG Bulk Ships, Inc., OBS Term Loan, 5.250%, 8/05/2019(j)		3,628,215
		Wireless — 0.0%
	3,384,615	Asurion LLC, New 2nd Lien Term Loan, 8.500%, 3/03/2021(j)		3,362,040
		Wirelines — 0.1%
	14,998,206	Integra Telecom, Inc., 2nd Lien Term Loan, 9.750%, 2/12/2021(c)(e)(j)		14,173,305
	1,672,962	LTS Buyer LLC, 2nd Lien Term Loan, 8.000%, 4/12/2021(j)		1,672,962
				15,846,267
		Total Senior Loans (Identified Cost $276,851,830)		225,206,329
Shares
	Common Stocks — 13.1%
		Airlines — 0.0%
	38,455	United Continental Holdings, Inc.(d)		2,017,734
		Automobiles — 0.1%
	274,135	General Motors Co.		8,709,269
		Containers & Packaging — 0.1%
	460,656	Owens-Illinois, Inc.(d)		8,471,464
		Diversified Telecommunication Services — 1.4%
	283,397	Hawaiian Telcom Holdco, Inc.(d)		6,345,259
	607,219	Level 3 Communications, Inc.(d)		28,162,817
	2,511,895	Telecom Italia SpA, Sponsored ADR		17,156,243
	10,974,105	Telefonica S.A., Sponsored ADR		110,618,978
				162,283,297

See accompanying notes to financial statements.

|  44

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Shares		Description	Value (†)
		Electric Utilities — 0.1%
	94,166	Duke Energy Corp.	$	7,537,047
		Energy Equipment & Services — 0.0%
	220,216	Hercules Offshore, Inc.(d)		380,974
		Household Durables — 0.3%
	477,725	KB Home		7,700,927
	549,450	Lennar Corp., Class A		23,263,713
				30,964,640
		Internet Software & Services — 0.0%
	303,043	Dex Media, Inc.(b)(d)		602,449
		Metals & Mining — 0.4%
	7,117,734	ArcelorMittal, (Registered)(d)		42,991,113
	226,877	Cliffs Natural Resources, Inc.(d)		1,327,231
				44,318,344
		Multi-Utilities — 0.0%
	73,618	CMS Energy Corp.		3,092,692
		Oil, Gas & Consumable Fuels — 0.7%
	846,398	Chesapeake Energy Corp.(d)		5,306,915
	272,554	Halcon Resources Corp.(d)		2,556,557
	5,351,804	Repsol YPF S.A., Sponsored ADR		73,052,125
	257,805	Rex Energy Corp.(d)		150,532
	1,514	Southcross Holdings Group LLC(b)(d)		—
	1,514	Southcross Holdings LP, Class A(b)(d)		545,040
				81,611,169
		Pharmaceuticals — 4.0%
	8,514,190	Bristol-Myers Squibb Co.		459,085,125
		REITs – Apartments — 0.1%
	290,904	Apartment Investment & Management Co., Class A		13,355,402
		REITs – Diversified — 0.2%
	227,043	NexPoint Residential Trust, Inc.		4,463,665
	452,307	Weyerhaeuser Co.		14,446,686
				18,910,351
		REITs – Regional Malls — 0.0%
	61,579	Washington Prime Group, Inc.		762,348
		REITs – Shopping Centers — 0.0%
	201,557	DDR Corp.		3,513,138
		Semiconductors & Semiconductor Equipment — 5.6%
	17,300,541	Intel Corp.		653,095,423
		Trading Companies & Distributors — 0.1%
	176,859	United Rentals, Inc.(d)		13,881,663
		Total Common Stocks (Identified Cost $1,257,330,336)		1,512,592,529

See accompanying notes to financial statements.

45  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Shares		Description	Value (†)
	Preferred Stocks — 1.7%
	Convertible Preferred Stocks — 1.6%
		Banking — 0.3%
	19,062	Bank of America Corp., Series L, 7.250%	$	23,271,652
	8,533	Wells Fargo & Co., Series L, Class A, 7.500%		11,166,284
				34,437,936
		Communications — 0.0%
	10,483	Cincinnati Bell, Inc., 6.750%		525,827
		Electric — 0.2%
	374,193	AES Trust III, 6.750%		19,083,843
		Energy — 0.1%
	242,297	El Paso Energy Capital Trust I, 4.750%		12,114,850
		Metals & Mining — 0.3%
	906,807	Alcoa, Inc., Series 1, 5.375%		29,643,521
		Midstream — 0.5%
	172,972	Chesapeake Energy Corp., 4.500%(d)		7,866,767
	231,033	Chesapeake Energy Corp., 5.000%(d)		9,905,540
	32,522	Chesapeake Energy Corp., Series A, 5.750%, 144A(d)		16,931,766
	43,178	Chesapeake Energy Corp., 5.750%, 144A(d)		22,830,367
	6,017	Chesapeake Energy Corp., 5.750%(d)		3,181,489
				60,715,929
		REITs – Diversified — 0.0%
	29,153	Crown Castle International Corp., Series A, 4.500%		3,294,872
		REITs – Health Care — 0.1%
	116,700	Welltower, Inc., 6.500%		7,766,385
		REITs – Hotels — 0.0%
	167,167	FelCor Lodging Trust, Inc., Series A, 1.950%		4,180,847
		REITs – Mortgage — 0.0%
	38,767	iStar, Inc., Series J, 4.500%		1,896,869
		Technology — 0.1%
	73,901	Belden, Inc., 6.750%		7,421,878
		Total Convertible Preferred Stocks (Identified Cost $221,153,452)		181,082,757
	Non-Convertible Preferred Stocks — 0.1%
		Electric — 0.0%
	393	Entergy New Orleans, Inc., 4.750%		40,196
		Finance Companies — 0.0%
	39,200	iStar, Inc., Series E, 7.875%		953,736
	39,300	iStar, Inc., Series F, 7.800%		959,313
	10,425	iStar, Inc., Series G, 7.650%		250,825
	101,175	SLM Corp., Series A, 6.970%		5,201,407
				7,365,281

See accompanying notes to financial statements.

|  46

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Shares		Description	Value (†)
		Home Construction — 0.0%
	208,246	Hovnanian Enterprises, Inc., 7.625%(d)	$	957,932
		REITs – Office Property — 0.0%
	1,596	Highwoods Properties, Inc., Series A, 8.625%		2,046,870
		REITs – Warehouse/Industrials — 0.1%
	116,192	ProLogis, Inc., Series Q, 8.540%		7,537,956
		Total Non-Convertible Preferred Stocks (Identified Cost $14,495,080)		17,948,235
		Total Preferred Stocks (Identified Cost $235,648,532)		199,030,992
	Closed-End Investment Companies — 0.0%
	170,282	NexPoint Credit Strategies Fund (Identified Cost $10,230,310)		3,785,369
	Warrants — 0.0%
	74,038	Halcon Resources Corp., Expiration on 9/9/2020 at $14.04(b)(d) (Identified Cost $0)		112,975
Principal Amount (‡)
	Short-Term Investments — 4.1%
$	67,605	Repurchase Agreement with State Street Bank and Trust Company, dated 9/30/2016 at 0.000% to be repurchased at $67,605 on 10/03/2016 collateralized by $68,000 U.S. Treasury Note, 1.500% due 8/31/2018 valued at $69,004 including accrued interest (Note 2 of Notes to Financial Statements)		67,605
	474,079,073	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2016 at 0.030% to be repurchased at $474,080,258 on 10/03/2016 collateralized by $437,815,000 U.S. Treasury Note, 2.750% due 2/15/2024 valued at $481,049,231; $2,285,000 U.S. Treasury Note, 3.500% due 5/15/2020 valued at $2,519,213 including accrued interest (Note 2 of Notes to Financial Statements)		474,079,073
		Total Short-Term Investments (Identified Cost $474,146,678)		474,146,678
		Total Investments — 100.2% (Identified Cost $11,840,744,973)(a)		11,594,203,999
		Other assets less liabilities — (0.2)%		(21,559,009	)
		Net Assets — 100.0%	$	11,572,644,990
	(‡)	Principal Amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 25.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.

See accompanying notes to financial statements.

47  |

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

(a)	Federal Tax Information:
	At September 30, 2016, the net unrealized depreciation on investments based on a cost of $11,993,453,488 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	$	1,092,715,414
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(1,491,964,903	)
	Net unrealized depreciation	$	(399,249,489	)
(b)	Fair valued by the Fund’s adviser. At September 30, 2016, the value of these securities amounted to $39,934,548 or 0.3% of net assets. See Note 2 of Notes to Financial Statements.
(c)	Illiquid security. (Unaudited)
(d)	Non-income producing security.
(e)	Securities classified as fair valued pursuant to the Fund’s pricing policies and procedures. At September 30, 2016, the value of these securities amounted to $287,514,280 or 2.5% of net assets. See Note 2 of Notes to Financial Statements.
(f)	Perpetual bond with no specified maturity date.
(g)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(h)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
(i)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities.
(j)	Variable rate security. Rate as of September 30, 2016 is disclosed.
(k)	Maturity has been extended under the terms of a plan of reorganization.
144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2016, the value of Rule 144A holdings amounted to $2,065,715,205 or 17.8% of net assets.
ABS	Asset-Backed Securities
ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
GO	General Obligation
MBIA	Municipal Bond Investors Assurance Corp.
MTN	Medium Term Note
PIK	Payment-in-Kind
REITs	Real Estate Investment Trusts
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
EUR	Euro
GBP	British Pound
ISK	Icelandic Krona
KRW	South Korean Won
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar

See accompanying notes to financial statements.

|  48

Portfolio of Investments – as of September 30, 2016

Loomis Sayles Strategic Income Fund – (continued)

Industry Summary at September 30, 2016

Treasuries	23.3	%
Banking	6.1
Semiconductors & Semiconductor Equipment	5.6
Technology	5.3
Wirelines	4.4
Finance Companies	4.1
Pharmaceuticals	4.0
Chemicals	3.7
Airlines	2.9
Metals & Mining	2.7
Healthcare	2.6
Cable Satellite	2.5
Other Investments, less than 2% each	28.9
Short-Term Investments	4.1
Total Investments	100.2
Other assets less liabilities	(0.2	)
Net Assets	100.0	%

Currency Exposure Summary at September 30, 2016

United States Dollar	78.2	%
New Zealand Dollar	4.8
Canadian Dollar	4.6
Mexican Peso	4.5
Australian Dollar	3.5
Norwegian Krone	2.3
Other, less than 2% each	2.3
Total Investments	100.2
Other assets less liabilities	(0.2	)
Net Assets	100.0	%

See accompanying notes to financial statements.

49  |

This Page Intentionally Left Blank

|  50

Statements of Assets and Liabilities

September 30, 2016

	Investment Grade Bond Fund			Strategic Income Fund
ASSETS
Investments at cost	$	6,726,376,753		$	11,840,744,973
Net unrealized appreciation (depreciation)		130,089,755			(246,540,974	)
Investments at value		6,856,466,508			11,594,203,999
Cash		242			3,752,922
Foreign currency at value (identified cost $114,455 and $3,531,990, respectively)		117,087			3,539,851
Receivable for Fund shares sold		17,091,255			10,339,709
Receivable for securities sold		23,375			8,359,273
Dividends and interest receivable		71,813,926			134,184,958
Tax reclaims receivable		—			970,082
Prepaid expenses (Note 7)		32,056			50,418
TOTAL ASSETS		6,945,544,449			11,755,401,212
LIABILITIES
Payable for securities purchased		99,982,744			152,618,016
Payable for Fund shares redeemed		56,340,393			22,618,817
Management fees payable (Note 5)		2,259,368			5,343,299
Deferred Trustees’ fees (Note 5)		621,839			1,132,578
Administrative fees payable (Note 5)		248,306			423,071
Payable to distributor (Note 5d)		101,623			105,500
Other accounts payable and accrued expenses		402,998			514,941
TOTAL LIABILITIES		159,957,271			182,756,222
NET ASSETS	$	6,785,587,178		$	11,572,644,990
NET ASSETS CONSIST OF:
Paid-in capital	$	6,501,669,002		$	11,706,804,059
Distributions in excess of net investment income		(36,390,882	)		(65,268,366	)
Accumulated net realized gain on investments and foreign currency transactions		190,299,119			177,723,436
Net unrealized appreciation (depreciation) on investments and foreign currency translations		130,009,939			(246,614,139	)
NET ASSETS	$	6,785,587,178		$	11,572,644,990

See accompanying notes to financial statements.

51  |

Statements of Assets and Liabilities (continued)

September 30, 2016

	Investment Grade Bond Fund		Strategic Income Fund
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	1,130,259,748	$	2,514,769,631
Shares of beneficial interest		97,554,871		171,073,311
Net asset value and redemption price per share	$	11.59	$	14.70
Offering price per share (100/95.75 of net asset value) (Note 1)	$	12.10	$	15.35
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	1,001,522,390	$	3,433,204,038
Shares of beneficial interest		87,250,868		231,806,675
Net asset value and offering price per share	$	11.48	$	14.81
Class N shares:
Net assets	$	47,343,262	$	130,637,137
Shares of beneficial interest		4,087,090		8,895,506
Net asset value, offering and redemption price per share	$	11.58	$	14.69
Class Y shares:
Net assets	$	4,571,167,381	$	5,350,759,424
Shares of beneficial interest		394,366,045		364,359,373
Net asset value, offering and redemption price per share	$	11.59	$	14.69
Admin Class shares:
Net assets	$	35,294,397	$	143,274,760
Shares of beneficial interest		3,052,569		9,779,483
Net asset value, offering and redemption price per share	$	11.56	$	14.65

See accompanying notes to financial statements.

|  52

Statements of Operations

For the Year Ended September 30, 2016

	Investment Grade Bond Fund			Strategic Income Fund
INVESTMENT INCOME
Interest	$	325,304,851		$	545,023,937
Dividends		7,492,247			78,065,514
Less net foreign taxes withheld		—			(3,283,611	)
		332,797,098			619,805,840
Expenses
Management fees (Note 5)		30,715,703			69,781,673
Service and distribution fees (Note 5)		14,461,003			45,065,365
Administrative fees (Note 5)		3,383,108			5,501,308
Trustees’ fees and expenses (Note 5)		202,236			326,729
Transfer agent fees and expenses (Notes 5 and 6)		9,929,893			10,098,130
Audit and tax services fees		63,345			63,893
Custodian fees and expenses		408,823			876,279
Legal fees (Note 5)		129,850			206,979
Registration fees (Note 5)		156,000			156,998
Shareholder reporting expenses (Note 5)		586,366			592,783
Miscellaneous expenses (Note 7)		222,551			356,170
Total expenses		60,258,878			133,026,307
Less waiver and/or expense reimbursement (Note 5)		(182	)		—
Net expenses		60,258,696			133,026,307
Net investment income		272,538,402			486,779,533
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on:
Investments		136,383,134			11,420,256
Foreign currency transactions		21,793			139,093
Net change in unrealized appreciation (depreciation) on:
Investments		143,709,929			473,836,450
Foreign currency translations		1,003,657			1,273,007
Net realized and unrealized gain on investments and foreign currency transactions		281,118,513			486,668,806
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	553,656,915		$	973,448,339

See accompanying notes to financial statements.

53  |

Statements of Changes in Net Assets

	Investment Grade Bond Fund						Strategic Income Fund
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2016			Year Ended September 30, 2015
FROM OPERATIONS:
Net investment income	$	272,538,402		$	361,122,543		$	486,779,533		$	701,259,933
Net realized gain on investments and foreign currency transactions		136,404,927			2,301,046			11,559,349			687,439,162
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		144,713,586			(837,843,535	)		475,109,457			(2,577,296,247	)
Net increase (decrease) in net assets resulting from operations		553,656,915			(474,419,946	)		973,448,339			(1,188,597,152	)
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(28,165,815	)		(56,457,196	)		(72,039,658	)		(147,603,925	)
Class B(a)		(414	)		(75,127	)		(5,681	)		(357,567	)
Class C		(14,105,068	)		(32,106,690	)		(67,805,939	)		(140,541,036	)
Class N		(797,188	)		(471,295	)		(3,297,872	)		(2,897,849	)
Class Y		(121,740,690	)		(223,960,105	)		(162,237,969	)		(326,016,878	)
Admin Class		(703,125	)		(810,779	)		(3,176,118	)		(4,780,012	)
Net realized capital gains
Class A		(19,604,662	)		(19,188,288	)		(168,275,106	)		(100,184,376	)
Class B(a)		(1,141	)		(40,831	)		(25,900	)		(473,223	)
Class C		(15,331,597	)		(14,769,296	)		(223,566,427	)		(120,460,405	)
Class N		(444,917	)		(70,374	)		(6,479,496	)		(1,367,218	)
Class Y		(77,370,095	)		(69,414,542	)		(342,430,922	)		(201,694,191	)
Admin Class		(517,149	)		(286,059	)		(7,801,515	)		(3,134,857	)
Total distributions		(278,781,861	)		(417,650,582	)		(1,057,142,603	)		(1,049,511,537	)
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		(2,478,069,233	)		(525,645,130	)		(3,201,646,172	)		(1,677,689,547	)
Net decrease in net assets		(2,203,194,179	)		(1,417,715,658	)		(3,285,340,436	)		(3,915,798,236	)
NET ASSETS
Beginning of the year		8,988,781,357			10,406,497,015			14,857,985,426			18,773,783,662
End of the year	$	6,785,587,178		$	8,988,781,357		$	11,572,644,990		$	14,857,985,426
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME	$	(36,390,882	)	$	(38,523,098	)	$	(65,268,366	)	$	(11,238,936	)

(a) On January 11, 2016, Class B shares were converted into Class A shares. See Note 1 of Notes to Financial Statements.

See accompanying notes to financial statements.

|  54

Financial Highlights

For a share outstanding throughout each period.

	Investment Grade Bond Fund—Class A
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	11.10		$	12.11		$	12.22		$	12.76		$	12.12
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.39			0.40			0.46			0.48			0.51
Net realized and unrealized gain (loss)		0.48			(0.95	)		0.26			(0.30	)		0.86
Total from Investment Operations		0.87			(0.55	)		0.72			0.18			1.37
LESS DISTRIBUTIONS FROM:
Net investment income		(0.23	)		(0.34	)		(0.51	)		(0.60	)		(0.62	)
Net realized capital gains		(0.15	)		(0.12	)		(0.32	)		(0.12	)		(0.11	)
Total Distributions		(0.38	)		(0.46	)		(0.83	)		(0.72	)		(0.73	)
Net asset value, end of the period	$	11.59		$	11.10		$	12.11		$	12.22		$	12.76
Total return(b)		8.06	%		(4.72	)%		6.04	%		1.34	%		11.74	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	1,130,260		$	1,628,216		$	1,932,847		$	2,431,718		$	2,960,119
Net expenses		0.85	%		0.83	%		0.83	%		0.83	%		0.84	%
Gross expenses		0.85	%		0.83	%		0.83	%		0.83	%		0.84	%
Net investment income		3.49	%		3.38	%		3.75	%		3.85	%		4.17	%
Portfolio turnover rate		11	%		23	%		19	%		30	%		19	%

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

(b) A sales charge for Class A shares is not reflected in total return calculations.

See accompanying notes to financial statements.

55  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Investment Grade Bond Fund—Class C
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	11.00		$	12.00		$	12.11		$	12.66		$	12.03
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.30			0.31			0.36			0.39			0.42
Net realized and unrealized gain (loss)		0.47			(0.94	)		0.27			(0.32	)		0.85
Total from Investment Operations		0.77			(0.63	)		0.63			0.07			1.27
LESS DISTRIBUTIONS FROM:
Net investment income		(0.14	)		(0.25	)		(0.42	)		(0.50	)		(0.53	)
Net realized capital gains		(0.15	)		(0.12	)		(0.32	)		(0.12	)		(0.11	)
Total Distributions		(0.29	)		(0.37	)		(0.74	)		(0.62	)		(0.64	)
Net asset value, end of the period	$	11.48		$	11.00		$	12.00		$	12.11		$	12.66
Total return(b)		7.18	%		(5.40	)%		5.29	%		0.50	%		10.91	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	1,001,522		$	1,219,687		$	1,524,806		$	1,746,822		$	2,281,142
Net expenses		1.60	%		1.58	%		1.58	%		1.58	%		1.59	%
Gross expenses		1.60	%		1.58	%		1.58	%		1.58	%		1.59	%
Net investment income		2.74	%		2.63	%		3.00	%		3.10	%		3.42	%
Portfolio turnover rate		11	%		23	%		19	%		30	%		19	%

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

(b) A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

See accompanying notes to financial statements.

|  56

Financial Highlights (continued)

For a share outstanding throughout each period.

	Investment Grade Bond Fund—Class N
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Period Ended September 30, 2013*
Net asset value, beginning of the period	$	11.11		$	12.11		$	12.22		$	12.66
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.43			0.44			0.50			0.34
Net realized and unrealized gain (loss)		0.47			(0.93	)		0.26			(0.46	)
Total from Investment Operations		0.90			(0.49	)		0.76			(0.12	)
LESS DISTRIBUTIONS FROM:
Net investment income		(0.28	)		(0.39	)		(0.55	)		(0.32	)
Net realized capital gains		(0.15	)		(0.12	)		(0.32	)		—
Total Distributions		(0.43	)		(0.51	)		(0.87	)		(0.32	)
Net asset value, end of the period	$	11.58		$	11.11		$	12.11		$	12.22
Total return		8.31	%		(4.28	)%		6.41	%		(0.95	)%(b)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	47,343		$	21,851		$	6,101		$	41
Net expenses		0.47	%		0.47	%		0.47	%(c)		0.65	%(d)(e)
Gross expenses		0.47	%		0.47	%		0.47	%(c)		0.78	%(e)
Net investment income		3.88	%		3.78	%		4.07	%		4.18	%(e)
Portfolio turnover rate		11	%		23	%		19	%		30	%

* From commencement of Class operations on February 1, 2013 through September 30, 2013.

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

(b) Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. Periods less than one year are not annualized.

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

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

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

See accompanying notes to financial statements.

57  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Investment Grade Bond Fund—Class Y
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	11.11		$	12.12		$	12.23		$	12.77		$	12.13
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.42			0.43			0.49			0.52			0.54
Net realized and unrealized gain (loss)		0.47			(0.95	)		0.26			(0.31	)		0.86
Total from Investment Operations		0.89			(0.52	)		0.75			0.21			1.40
LESS DISTRIBUTIONS FROM:
Net investment income		(0.26	)		(0.37	)		(0.54	)		(0.63	)		(0.65	)
Net realized capital gains		(0.15	)		(0.12	)		(0.32	)		(0.12	)		(0.11	)
Total Distributions		(0.41	)		(0.49	)		(0.86	)		(0.75	)		(0.76	)
Net asset value, end of the period	$	11.59		$	11.11		$	12.12		$	12.23		$	12.77
Total return		8.25	%		(4.47	)%		6.30	%		1.60	%		12.01	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	4,571,167		$	6,081,536		$	6,911,938		$	6,130,700		$	6,817,911
Net expenses		0.60	%		0.58	%		0.59	%		0.58	%		0.59	%
Gross expenses		0.60	%		0.58	%		0.59	%		0.58	%		0.59	%
Net investment income		3.74	%		3.63	%		3.99	%		4.11	%		4.41	%
Portfolio turnover rate		11	%		23	%		19	%		30	%		19	%

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

See accompanying notes to financial statements.

|  58

Financial Highlights (continued)

For a share outstanding throughout each period.

	Investment Grade Bond Fund—Admin Class
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	11.08		$	12.09		$	12.20		$	12.74		$	12.11
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.37			0.37			0.43			0.45			0.48
Net realized and unrealized gain (loss)		0.47			(0.95	)		0.26			(0.30	)		0.85
Total from Investment Operations		0.84			(0.58	)		0.69			0.15			1.33
LESS DISTRIBUTIONS FROM:
Net investment income		(0.21	)		(0.31	)		(0.48	)		(0.57	)		(0.59	)
Net realized capital gains		(0.15	)		(0.12	)		(0.32	)		(0.12	)		(0.11	)
Total Distributions		(0.36	)		(0.43	)		(0.80	)		(0.69	)		(0.70	)
Net asset value, end of the period	$	11.56		$	11.08		$	12.09		$	12.20		$	12.74
Total return		7.73	%		(4.95	)%		5.79	%		1.10	%		11.41	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	35,294		$	37,355		$	25,585		$	21,557		$	15,968
Net expenses		1.07	%(b)		1.08	%		1.09	%		1.08	%		1.09	%
Gross expenses		1.07	%(b)		1.08	%		1.09	%		1.08	%		1.09	%
Net investment income		3.27	%		3.14	%		3.49	%		3.62	%		3.89	%
Portfolio turnover rate		11	%		23	%		19	%		30	%		19	%

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

(b) Includes refund of prior year service fee of 0.03%. See Note 5b of Notes to Financial Statements.

See accompanying notes to financial statements.

59  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Strategic Income Fund—Class A
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	14.70		$	16.75		$	15.93		$	15.30		$	14.21
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.57			0.64			0.58			0.65			0.72
Net realized and unrealized gain (loss)		0.61			(1.74	)		0.90			0.76			1.21
Total from Investment Operations		1.18			(1.10	)		1.48			1.41			1.93
LESS DISTRIBUTIONS FROM:
Net investment income		(0.36	)		(0.57	)		(0.62	)		(0.78	)		(0.84	)
Net realized capital gains		(0.82	)		(0.38	)		(0.04	)		—			—
Total Distributions		(1.18	)		(0.95	)		(0.66	)		(0.78	)		(0.84	)
Net asset value, end of the period	$	14.70		$	14.70		$	16.75		$	15.93		$	15.30
Total return(b)		8.72	%		(6.88	)%		9.34	%		9.43	%		14.02	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	2,514,770		$	3,318,262		$	4,408,257		$	5,239,885		$	5,155,287
Net expenses		0.96	%		0.94	%		0.94	%		0.95	%		0.96	%
Gross expenses		0.96	%		0.94	%		0.94	%		0.95	%		0.96	%
Net investment income		4.01	%		3.95	%		3.44	%		4.14	%		4.84	%
Portfolio turnover rate		17	%		23	%		26	%		22	%		30	%

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

(b) A sales charge for Class A shares is not reflected in total return calculations.

See accompanying notes to financial statements.

|  60

Financial Highlights (continued)

For a share outstanding throughout each period.

	Strategic Income Fund—Class C
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	14.80		$	16.85		$	16.03		$	15.39		$	14.29
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.47			0.52			0.45			0.54			0.61
Net realized and unrealized gain (loss)		0.61			(1.74	)		0.90			0.76			1.23
Total from Investment Operations		1.08			(1.22	)		1.35			1.30			1.84
LESS DISTRIBUTIONS FROM:
Net investment income		(0.25	)		(0.45	)		(0.49	)		(0.66	)		(0.74	)
Net realized capital gains		(0.82	)		(0.38	)		(0.04	)		—			—
Total Distributions		(1.07	)		(0.83	)		(0.53	)		(0.66	)		(0.74	)
Net asset value, end of the period	$	14.81		$	14.80		$	16.85		$	16.03		$	15.39
Total return(b)		7.91	%		(7.60	)%		8.54	%		8.61	%		13.18	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	3,433,204		$	4,295,139		$	5,390,222		$	4,912,727		$	5,064,186
Net expenses		1.71	%		1.69	%		1.69	%		1.70	%		1.71	%
Gross expenses		1.71	%		1.69	%		1.69	%		1.70	%		1.71	%
Net investment income		3.26	%		3.20	%		2.68	%		3.39	%		4.08	%
Portfolio turnover rate		17	%		23	%		26	%		22	%		30	%

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

(b) A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

See accompanying notes to financial statements.

61  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Strategic Income Fund—Class N
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Period Ended September 30, 2013*
Net asset value, beginning of the period	$	14.69		$	16.73		$	15.92		$	15.78
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.61			0.69			0.61			0.46
Net realized and unrealized gain (loss)		0.62			(1.73	)		0.91			0.16
Total from Investment Operations		1.23			(1.04	)		1.52			0.62
LESS DISTRIBUTIONS FROM:
Net investment income		(0.41	)		(0.62	)		(0.67	)		(0.48	)
Net realized capital gains		(0.82	)		(0.38	)		(0.04	)		—
Total Distributions		(1.23	)		(1.00	)		(0.71	)		(0.48	)
Net asset value, end of the period	$	14.69		$	14.69		$	16.73		$	15.92
Total return		9.09	%		(6.58	)%		9.70	%		4.01	%(b)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	130,637		$	83,405		$	57,752		$	12,921
Net expenses		0.63	%		0.62	%		0.62	%		0.63	%(c)
Gross expenses		0.63	%		0.62	%		0.62	%		0.63	%(c)
Net investment income		4.34	%		4.33	%		3.62	%		4.38	%(c)
Portfolio turnover rate		17	%		23	%		26	%		22	%

* From commencement of Class operations on February 1, 2013 through September 30, 2013.

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

(b) Periods less than one year are not annualized.

(c) Computed on an annualized basis for periods less than one year.

See accompanying notes to financial statements.

|  62

Financial Highlights (continued)

For a share outstanding throughout each period.

	Strategic Income Fund—Class Y
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	14.69		$	16.73		$	15.92		$	15.29		$	14.20
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.61			0.68			0.61			0.69			0.75
Net realized and unrealized gain (loss)		0.61			(1.73	)		0.90			0.76			1.22
Total from Investment Operations		1.22			(1.05	)		1.51			1.45			1.97
LESS DISTRIBUTIONS FROM:
Net investment income		(0.40	)		(0.61	)		(0.66	)		(0.82	)		(0.88	)
Net realized capital gains		(0.82	)		(0.38	)		(0.04	)		—			—
Total Distributions		(1.22	)		(0.99	)		(0.70	)		(0.82	)		(0.88	)
Net asset value, end of the period	$	14.69		$	14.69		$	16.73		$	15.92		$	15.29
Total return		9.00	%		(6.65	)%		9.63	%		9.72	%		14.31	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	5,350,759		$	7,018,369		$	8,747,384		$	4,789,322		$	4,339,240
Net expenses		0.71	%		0.69	%		0.69	%		0.70	%		0.71	%
Gross expenses		0.71	%		0.69	%		0.69	%		0.70	%		0.71	%
Net investment income		4.26	%		4.21	%		3.65	%		4.39	%		5.05	%
Portfolio turnover rate		17	%		23	%		26	%		22	%		30	%

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

See accompanying notes to financial statements.

63  |

Financial Highlights (continued)

For a share outstanding throughout each period.

	Strategic Income Fund—Admin Class
	Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014			Year Ended September 30, 2013			Year Ended September 30, 2012
Net asset value, beginning of the period	$	14.66		$	16.70		$	15.89		$	15.27		$	14.18
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.53			0.60			0.53			0.61			0.67
Net realized and unrealized gain (loss)		0.61			(1.73	)		0.90			0.75			1.23
Total from Investment Operations		1.14			(1.13	)		1.43			1.36			1.90
LESS DISTRIBUTIONS FROM:
Net investment income		(0.33	)		(0.53	)		(0.58	)		(0.74	)		(0.81	)
Net realized capital gains		(0.82	)		(0.38	)		(0.04	)		—			—
Total Distributions		(1.15	)		(0.91	)		(0.62	)		(0.74	)		(0.81	)
Net asset value, end of the period	$	14.65		$	14.66		$	16.70		$	15.89		$	15.27
Total return		8.42	%		(7.13	)%		9.12	%		9.12	%		13.79	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	143,275		$	141,844		$	139,423		$	80,666		$	49,486
Net expenses		1.20	%(b)		1.19	%		1.19	%		1.20	%		1.21	%
Gross expenses		1.20	%(b)		1.19	%		1.19	%		1.20	%		1.21	%
Net investment income		3.76	%		3.73	%		3.15	%		3.89	%		4.52	%
Portfolio turnover rate		17	%		23	%		26	%		22	%		30	%

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

[b) Includes refund of prior year service fee of 0.01%. See Note 5b of Notes to Financial Statements.

See accompanying notes to financial statements.

|  64

Notes to Financial Statements

September 30, 2016

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

Loomis Sayles Investment Grade Bond Fund (the “Investment Grade Bond Fund”)

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

Each Fund is a diversified investment company.

Each Fund offers Class A, Class C, Class N, Class Y and Admin Class shares. As of the close of business on January 11, 2016, Class B shares were converted into Class A shares and are no longer offered.

Class A shares are sold with a maximum front-end sales charge of 4.25%. Class C shares do not pay a front-end sales charge, do not convert to any other class of shares, pay higher Rule 12b-1 fees than Class A shares and may be subject to a CDSC of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are offered with no initial minimum investment to certain retirement plans held in an omnibus fashion, and fund of funds that are distributed by NGAM Distribution, L.P. (“NGAM Distribution”) and with an initial minimum investment of $1,000,000 to other categories of investors. Class Y shares are generally intended for institutional investors with a minimum initial investment of $100,000, though some categories of investors are exempted from the minimum investment amount as outlined in the Funds’ prospectus. Admin Class shares do not pay a front-end sales charge or a CDSC, but do pay a Rule 12b-1 fee. Admin Class shares are offered exclusively through intermediaries.

Most expenses can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”). Expenses of a Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (such as the Rule 12b-1 fees applicable to Class A, Class C and Admin Class), and transfer agent fees are borne collectively for Class A, Class C, Class Y, and Admin Class and individually for Class N. In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of the Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

65  |

Notes to Financial Statements (continued)

September 30, 2016

2.  Significant Accounting Policies.  The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements follow the accounting and reporting guidelines provided for investment companies and are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions subsequent to year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.

a.  Valuation.  Fund securities and other investments are valued at market value based on market quotations obtained or determined by independent pricing services recommended by the adviser and approved by the Board of Trustees. Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees, as described below. Market value is determined as follows:

Debt securities and unlisted preferred equity securities are valued based on evaluated bids furnished to the Fund by an independent pricing service, or bid prices obtained from broker-dealers. Senior loans are valued at bid prices supplied by an independent pricing service, if available. Listed equity securities (including shares of closed-end investment companies and exchange-traded funds) are valued at the last sale price quoted on the exchange where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. 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 an NOCP, at the most recent bid quotations on the applicable NASDAQ Market. Unlisted equity securities (except unlisted preferred equity securities) are valued at the last sale price quoted in the market where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. If there is no last sale price or closing bid quotation available, unlisted equity securities will be valued using evaluated bids furnished by an independent pricing service, if available. In some foreign markets, an official close price and a last sale price may be available from the foreign exchange or market. In those cases, the official close price is used. Broker-dealer bid prices may be used to value debt and unlisted equity securities and senior loans where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Forward foreign currency contracts are valued utilizing interpolated rates determined based on information provided by an independent pricing service.

|  66

Notes to Financial Statements (continued)

September 30, 2016

Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees. The Fund may also value securities and other investments at fair value in other circumstances such as when extraordinary events occur after the close of a foreign market but prior to the close of the New York Stock Exchange (“NYSE”). This may include situations relating to a single issuer (such as a declaration of bankruptcy or a delisting of the issuer’s security from the primary market on which it has traded) as well as events affecting the securities markets in general (such as market disruptions or closings and significant fluctuations in U.S. and/or foreign markets). When fair valuing its securities or other investments, the Fund may, among other things, use modeling tools or other processes that may take into account factors such as securities or other market activity and/or significant events that occur after the close of the foreign market and before the time a Fund’s net asset value (“NAV”) is calculated. Fair value pricing may require subjective determinations about the value of a security, and fair values used to determine a Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same securities. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities held by the Fund.

Illiquid securities for which market quotations are readily available and have been evaluated by the adviser are considered and classified as fair valued securities.

As of September 30, 2016, securities of the Funds were fair valued as follows:

Fund	Securities classified as fair valued		Percentage of Net Assets			Securities fair valued by the Fund’s adviser		Percentage of Net Assets
Investment Grade Bond Fund	$	182,237,402		2.7	%	$	676		Less than 0.1	%
Strategic Income Fund		287,514,280		2.5	%		39,934,548		0.3	%

b.  Investment Transactions and Related Investment Income.  Investment transactions are accounted for on a trade date plus one day basis for daily NAV calculation. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium, if applicable. 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. 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.

67  |

Notes to Financial Statements (continued)

September 30, 2016

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

Net realized foreign exchange gains or losses arise from sales of foreign currency, changes in exchange rates between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investment securities, as of the end of the fiscal period, resulting from changes in exchange rates. Net realized foreign exchange gains or losses and the net change in unrealized foreign exchange gains or losses are disclosed in the Statements of Operations. For federal income tax purposes, net realized foreign exchange gains or losses are characterized as ordinary income and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.

The values of investment securities are presented at the foreign exchange rates prevailing at the end of the period for financial reporting purposes. Net realized and unrealized gains or losses on investments reported in the Statements of Operations reflect gains or losses resulting from changes in exchange rates and fluctuations which arise due to changes in market prices of investment securities. For federal income tax purposes, a portion of the net realized gain or loss on investments arising from changes in exchange rates, which is reflected in the Statements of Operations, may be characterized as ordinary income and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.

For the year ended September 30, 2016, the amount of income available to be distributed has been reduced by the following amounts as a result of losses arising from changes in exchange rates:

Investment Grade Bond Fund	$	150,866,578
Strategic Income Fund	$	301,519,911

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

d.  Forward Foreign Currency Contracts.  The Funds may enter into forward foreign currency contracts, including forward foreign cross currency contracts, to acquire exposure to foreign currencies or to hedge the Funds’ investments against currency fluctuation. A contract can also be used to offset a previous contract. These contracts

|  68

Notes to Financial Statements (continued)

September 30, 2016

involve market risk in excess of the unrealized gain or loss reflected in the Funds’ Statements of Assets and Liabilities. The U.S. dollar value of the currencies a Fund has committed to buy or sell represents the aggregate exposure to each currency a Fund has acquired or hedged through currency contracts outstanding at period end. Gains or losses are recorded for financial statement purposes as unrealized until settlement date. Contracts are traded over-the-counter directly with a counterparty. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Certain contracts may require the movement of cash and/or securities as collateral for the Funds’ or counterparty’s net obligations under the contracts.

No forward foreign currency contracts were held by the Funds during the year ended September 30, 2016.

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 of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of September 30, 2016 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

A Fund may be subject to foreign withholding taxes on investment income and taxes on capital gains on investments that are accrued and paid based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign withholding taxes on dividend and interest income are reflected on the Statements of Operations as a reduction of investment income, net of amounts eligible to be reclaimed. Dividends and interest receivable on the Statements of Assets and Liabilities are net of foreign withholding taxes. Foreign withholding taxes where reclaims have been or will be filed are reflected on the Statements of Assets and Liabilities as tax reclaims receivable. Capital gains taxes paid are included in net realized gain (loss) on investments in the Statements of Operations. Accrued but unpaid capital gains taxes are reflected as foreign taxes payable on the Statements of Assets and Liabilities, if applicable, and reduce unrealized gains on investments. In the event that realized gains on investments are subsequently offset by realized losses, taxes paid on realized gains may be returned to a Fund. Such amounts, if applicable,

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September 30, 2016

are reflected as foreign tax rebates receivable on the Statements of Assets and Liabilities and are recorded as a realized gain when received.

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 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 of items such as distribution redesignations, corporate actions, defaulted and/or non-income producing securities, foreign currency gains and losses, premium amortization, convertible bonds, paydown gains and losses, trust preferred securities, contingent payment debt instruments and capital gain and return of capital distributions received. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts reported on the Statements of Assets and Liabilities. Temporary differences between book and tax distributable earnings are primarily due to corporate actions, deferred Trustees’ fees, wash sales, premium amortization, return of capital distributions received, trust preferred securities, defaulted and/or non-income producing securities, contingent payment debt instruments and convertible bonds. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2016 and 2015 were as follows:

	2016 Distributions Paid From:						2015 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Investment Grade Bond Fund	$	173,908,292	$	104,873,569	$	278,781,861	$	313,881,192	$	103,769,390	$	417,650,582
Strategic Income Fund		324,763,496		732,379,107		1,057,142,603		660,241,145		389,270,392		1,049,511,537

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.

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Notes to Financial Statements (continued)

September 30, 2016

As of September 30, 2016, the components of distributable earnings on a tax basis were as follows:

	Investment Grade Bond Fund		Strategic Income Fund
Undistributed ordinary income	$	22,735,299	$	49,144,459
Undistributed long-term capital gains		237,821,750		229,900,734
Total undistributed earnings		260,557,049		279,045,193
Unrealized appreciation (depreciation)		25,932,334		(394,874,921	)
Total accumulated earnings (losses)	$	286,489,383	$	(115,829,728	)

As of September 30, 2016, unrealized appreciation (depreciation) on a tax basis was as follows:

Unrealized appreciation (depreciation)	Investment Grade Bond Fund			Strategic Income Fund
Investments	$	402,320,181		$	136,916,017
Foreign currency translations		(376,387,847	)		(531,790,938	)
Total unrealized appreciation (depreciation)	$	25,932,334		$	(394,874,921	)

g.  Loan Participations.  Each Fund may invest in loans to corporate, governmental or other borrowers. The Funds’ investments in loans may be in the form of participations in loans or assignments of all or a portion of loans. A loan is often administered by a bank or other financial institution that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, (i) a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the party from whom the Fund has purchased the participation and only upon receipt by that party of payments from the borrower and (ii) a Fund generally has no right to enforce compliance by the borrower with the terms of the loan agreement or to vote on matters arising under the loan agreement. Thus, a Fund may be subject to credit risk both of the party from whom it purchased the loan participation and the borrower and the Fund may have minimal control over the terms of any loan modification. When a Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan. Loan agreements and participations outstanding at the end of the period, if any, are listed in each applicable Fund’s Schedule of Investments.

h.  Repurchase Agreements.  Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral

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Notes to Financial Statements (continued)

September 30, 2016

for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of September 30, 2016, each Fund, as applicable, had investments in repurchase agreements for which the value of the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.

i.  Securities Lending.  The Funds have entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Funds, to lend securities to certain designated borrowers. The loans are collateralized with cash or securities in an amount equal to at least 105% or 102% of the market value (including accrued interest) of the loaned international or domestic securities, respectively, when the loan is initiated. Thereafter, the value of the collateral must remain at least 102% of the market value (including accrued interest) of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value (including accrued interest) of loaned securities for non-U.S. equities; and at least 100% of the market value (including accrued interest) of loaned securities for U.S. Government securities, sovereign debt issued by non-U.S. Governments and non-U.S. corporate debt. In the event that the market value of the collateral falls below the required percentages described above, the borrower will deliver additional collateral on the next business day. As with other extensions of credit, the Funds 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. Excess collateral in the amount of $2,489,145 related to terminated loans with a bankrupt borrower is held by State Street Bank on behalf of Strategic Income Fund.

For the year ended September 30, 2016, neither Fund had loaned securities under this agreement.

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

3.  Fair Value Measurements.  In accordance with accounting standards related to fair value measurements and disclosures, the Funds have categorized the inputs utilized in

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Notes to Financial Statements (continued)

September 30, 2016

determining the value of each Fund’s assets or liabilities. These inputs are summarized in the three broad levels listed below:

• Level 1 – quoted prices in active markets for identical assets or liabilities;

• Level 2 – prices determined using other significant inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk, etc.); and

• Level 3 – prices determined using significant unobservable inputs when quoted prices or observable inputs are unavailable such as when there is little or no market activity for an asset or liability (unobservable inputs reflect each Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The Funds’ pricing policies and procedures are recommended by the adviser and approved by the Board of Trustees. Debt securities are valued based on evaluated bids furnished to the Funds by an independent pricing service. Broker-dealer bid prices may be used if an independent pricing service either is unable to price a security or does not provide a reliable price for a security. Broker-dealer bid prices for which the Funds do not have knowledge of the inputs used by the broker-dealer are categorized in Level 3. All security prices, including those obtained from an independent pricing service and broker-dealer bid prices, are reviewed on a daily basis by the adviser, subject to oversight by Fund management and the Board of Trustees. If the adviser, in good faith, believes that the price provided by an independent pricing service is unreliable, broker-dealer bid prices may be used until the price provided by the independent pricing service is considered to be reliable. Reliability of all security prices, including those obtained from an independent pricing service and broker-dealer bid prices, is tested in a variety of ways, including comparison to recent transaction prices and daily fluctuations, amongst other validation procedures in place. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ adviser pursuant to procedures approved by the Board of Trustees. Fair valued securities may be categorized in Level 3.

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Notes to Financial Statements (continued)

September 30, 2016

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2016, at value:

Investment Grade Bond

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	—	$	19,490,636	$	90,763,489	(b)	$	110,254,125
Finance Companies		1,434,214		245,694,961		—			247,129,175
Metals & Mining		—		217,747,224		676	(c)		217,747,900
Non-Agency Commercial Mortgage-Backed Securities		—		39,209,555		18,290,710	(b)		57,500,265
All Other Non-Convertible Bonds(a)		—		5,393,455,372		—			5,393,455,372
Total Non-Convertible Bonds		1,434,214		5,915,597,748		109,054,875			6,026,086,837
Convertible Bonds(a)		—		388,028,831		—			388,028,831
Municipals(a)		—		20,243,150		—			20,243,150
Total Bonds and Notes		1,434,214		6,323,869,729		109,054,875			6,434,358,818
Senior Loans(a)		—		28,181,782		—			28,181,782
Common Stocks(a)		62,561,808		—		—			62,561,808
Preferred Stocks(a)		—		1,844,954		—			1,844,954
Short-Term Investments		—		329,519,146		—			329,519,146
Total	$	63,996,022	$	6,683,415,611	$	109,054,875		$	6,856,466,508

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

(b) Valued using broker-dealer bid prices.

(c) Fair valued by the Fund’s adviser.

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Notes to Financial Statements (continued)

September 30, 2016

Strategic Income Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	—	$	11,243,882	$	15,268,979	(b)	$	26,512,861
Airlines		—		331,626,000		138,786	(c)		331,764,786
Chemicals		—		367,248,053		12,834,270	(d)		380,082,323
Finance Companies		2,526,101		476,466,846		—			478,992,947
Metals & Mining		—		235,370,759		3,281	(d)		235,374,040
Transportation Services		—		6,931,980		10,567,554	(d)		17,499,534
All Other Non-Convertible Bonds(a)		—		6,785,044,387		—			6,785,044,387
Total Non-Convertible Bonds		2,526,101		8,213,931,907		38,812,870			8,255,270,878
Convertible Bonds(a)		—		751,918,276		—			751,918,276
Municipals(a)		—		159,326,111		—			159,326,111
Total Bonds and Notes		2,526,101		9,125,176,294		38,812,870			9,166,515,265
Loan Participations(a)		—		—		12,813,862	(c)		12,813,862
Senior Loans
Wirelines		—		1,672,962		14,173,305	(c)		15,846,267
All Other Senior Loans(a)		—		209,360,062		—			209,360,062
Total Senior Loans		—		211,033,024		14,173,305			225,206,329
Common Stocks
Internet Software & Services		—		—		602,449	(d)		602,449
Oil, Gas & Consumable Fuels(e)		81,066,129		—		545,040	(d)		81,611,169
All Other Common Stocks(a)		1,430,378,911		—		—			1,430,378,911
Total Common Stocks		1,511,445,040		—		1,147,489			1,512,592,529

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Notes to Financial Statements (continued)

September 30, 2016

Strategic Income Fund (continued)

Asset Valuation Inputs (continued)

Description	Level 1		Level 2		Level 3			Total
Preferred Stocks
Convertible Preferred Stocks
Midstream	$	7,866,767	$	52,849,162	$	—		$	60,715,929
REITs – Mortgage		—		1,896,869		—			1,896,869
All Other Convertible Preferred Stocks(a)		118,469,959		—		—			118,469,959
Total Convertible Preferred Stocks		126,336,726		54,746,031		—			181,082,757
Non-Convertible Preferred Stocks
Electric		—		40,196		—			40,196
REITs – Office Property		—		2,046,870		—			2,046,870
REITs – Warehouse/Industrials		—		7,537,956		—			7,537,956
All Other Non-Convertible Preferred Stocks(a)		8,323,213		—		—			8,323,213
Total Non-Convertible Preferred Stocks		8,323,213		9,625,022		—			17,948,235
Total Preferred Stocks		134,659,939		64,371,053		—			199,030,992
Closed-End Investment Companies		3,785,369		—		—			3,785,369
Warrants		—		—		112,975	(d)		112,975
Short-Term Investments		—		474,146,678		—			474,146,678
Total	$	1,652,416,449	$	9,874,727,049	$	67,060,501		$	11,594,203,999

(a) Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

(b) Fair valued by the Fund’s adviser using broker-dealer bid prices for which the inputs are unobservable to the Fund.

(c) Valued using broker-dealer bid prices.

(d) Fair valued by the Fund’s adviser.

(e) Includes a security fair valued at zero using Level 3 inputs.

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Notes to Financial Statements (continued)

September 30, 2016

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of September 30, 2015 and/or September 30, 2016:

Investment Grade Bond Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2015			Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	101,483,141		$	—	$	29,655		$	(2,498,936	)	$	—
Metals & Mining		540,799			10,177		—			(550,300	)		—
Non-Agency Commercial Mortgage-Backed Securities		18,273,394			—		—			17,316			—
	$	120,297,334		$	10,177	$	29,655		$	(3,031,920	)	$	—
Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2016			Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September  30, 2016
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	(5,193,516	)	$	—	$	(3,056,855	)	$	90,763,489		$	(2,229,646	)
Metals & Mining		—			—		—			676			(550,300	)
Non-Agency Commercial Mortgage-Backed Securities		—			—		—			18,290,710			17,316
	$	(5,193,516	)	$	—	$	(3,056,855	)	$	109,054,875		$	(2,762,630	)

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Notes to Financial Statements (continued)

September 30, 2016

A debt security valued at $3,056,855 was transferred from Level 3 to Level 2 during the period ended September 30, 2016. At September 30, 2015, this security was valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the security. At September 30, 2016, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

All transfers are recognized as of the beginning of the reporting period.

Strategic Income Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2015		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	53,844,406	$	—	$	—		$	(34,750,849	)	$	520,704
Airlines		46,132,152		—		43,206			(60,067	)		—
Chemicals		—		306,732		—			(7,009,540	)		—
Metals & Mining		2,624,679		48,558		—			(2,669,956	)		—
Non-Agency Commercial Mortgage-Backed Securities		30,346,820		—		—			—			—
Oil Field Services		205,000		—		—			—			—
Retailers		11,273,545		—		—			—			—
Transportation Services		12,632,376		26,759		298,808			(445,588	)		1,127,211
Common Stocks
Internet Software & Services		—		—		—			(873,771	)		1,476,220
Oil, Gas & Consumable Fuels		—		—		—			(1,670,093	)		2,215,133
Loan Participations
ABS Other		13,995,223		—		(7,245	)		(208,180	)		—
Senior Loans
Wirelines		—		—		—			(718,714	)		—
Warrants		—		—		—			112,975			—
Total	$	171,054,201	$	382,049	$	334,769		$	(48,293,783	)	$	5,339,268

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Notes to Financial Statements (continued)

September 30, 2016

Strategic Income Fund (continued)

Asset Valuation Inputs (continued)

Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2016		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2016
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	(4,345,282	)	$	—	$	—		$	15,268,979	$	(36,328,044	)
Airlines		(676,304	)		831,951		(46,132,152	)		138,786		(60,067	)
Chemicals		—			19,537,078		—			12,834,270		(7,009,540	)
Metals & Mining		—			—		—			3,281		(2,669,956	)
Non-Agency Commercial Mortgage-Backed Securities		—			—		(30,346,820	)		—		—
Oil Field Services		—			—		(205,000	)		—		—
Retailers		—			—		(11,273,545	)		—		—
Transportation Services		(3,072,012	)		—		—			10,567,554		(76,511	)
Common Stocks
Internet Software & Services		—			—		—			602,449		(873,771	)
Oil, Gas & Consumable Fuels		—			—		—			545,040		(1,670,093	)
Loan Participations
ABS Other		(965,936	)		—		—			12,813,862		(210,594	)
Senior Loans
Wirelines		—			14,892,019		—			14,173,305		(718,714	)
Warrants		—			—		—			112,975		112,975
Total	$	(9,059,534	)	$	35,261,048	$	(87,957,517	)	$	67,060,501	$	(49,504,315	)

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Notes to Financial Statements (continued)

September 30, 2016

Debt securities valued at $831,951 were transferred from Level 2 to Level 3 during the period ended September 30, 2016. At September 30, 2015, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2016, these securities were valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the securities.

Debt securities valued at $76,478,972 were transferred from Level 3 to Level 2 during the period ended September 30, 2016. At September 30, 2015, these securities were valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the securities. At September 30, 2016, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

Debt securities valued at $19,537,078 were transferred from Level 2 to Level 3 during the period ended September 30, 2016. At September 30, 2015, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2016, these securities were valued at fair value as determined in good faith by the Fund’s adviser as an independent pricing service did not provide a reliable price for the securities.

Debt securities valued at $11,478,545 were transferred from Level 3 to Level 2 during the period ended September 30, 2016. At September 30, 2015, these securities were valued at fair value as determined in good faith by the Fund’s investment adviser as an independent pricing service did not provide a reliable price for the securities. At September 30, 2016, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies

A debt security valued at $14,892,019 was transferred from Level 2 to Level 3 during the period ended September 30, 2016. At September 30, 2015, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2016, this security was valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service did not provide a reliable price for the security.

All transfers are recognized as of the beginning of the reporting period.

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Notes to Financial Statements (continued)

September 30, 2016

4.  Purchases and Sales of Securities.  For the year ended September 30, 2016, purchases and sales of securities (excluding short-term investments and including paydowns) were as follows:

	U.S. Government/Agency Securities				Other Securities
Fund	Purchases		Sales		Purchases		Sales
Investment Grade Bond Fund	$	579,724,609	$	691,830,802	$	259,507,294	$	2,705,635,811
Strategic Income Fund		1,508,657,421		679,307,197		534,564,024		4,844,448,347

5. Management Fees and Other Transactions with Affiliates.

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

	Percentage of Average Daily Net Assets
Fund	First $200 million			Next $1.8 billion			Next $13 billion			Next $10 billion			Over $25 billion
Investment Grade Bond Fund		0.40	%		0.40	%		0.40	%		0.38	%		0.38	%
Strategic Income Fund		0.65	%		0.60	%		0.55	%		0.54	%		0.53	%

Loomis Sayles has given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until January 31, 2017, may be terminated before then only with the consent of the Funds’ Board of Trustees and are reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.

81  |

Notes to Financial Statements (continued)

September 30, 2016

For the year ended September 30, 2016 (period ending close of business January 11, 2016, for Class B) 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 N			Class Y			Admin Class
Investment Grade Bond Fund		0.95	%		1.70	%		1.70	%		0.65	%		0.70	%		1.20	%
Strategic Income Fund		1.25	%		2.00	%		2.00	%		0.95	%		1.00	%		1.50	%

Loomis Sayles shall be permitted to recover expenses they have borne under the expense limitation agreements (whether through waiver of its management fees or otherwise) on a class by class basis in later periods to the extent the annual operating expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such waived/reimbursed fees or expenses more than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed.

For the year ended September 30, 2016, the management fees for each Fund were as follows:

Fund	Gross Management Fees		Percentage of Average Daily Net Assets
Investment Grade Bond Fund	$	30,715,703		0.40	%
Strategic Income Fund		69,781,673		0.56	%

No expenses were recovered for either Fund during the year ended September 30, 2016 under the terms of the expense limitation agreements.

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.  Service and Distribution Fees.  NGAM Distribution, which is a wholly-owned subsidiary of Natixis US, has entered into a distribution agreement with the Trust. Pursuant to this agreement, NGAM Distribution serves as principal underwriter of the Funds of the Trust.

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

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Notes to Financial Statements (continued)

September 30, 2016

Under the Class A Plans, each Fund pays NGAM Distribution a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Class A shares, as reimbursement for expenses incurred by NGAM Distribution 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 (or paid) NGAM Distribution a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Class B and Class C shares, as compensation for services provided by NGAM Distribution 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 (or paid) NGAM Distribution a monthly distribution fee at an annual rate of 0.75% of the average daily net assets attributable to the Funds’ Class B and Class C shares, as compensation for services provided by NGAM Distribution in connection with the marketing or sale of Class B and Class C shares.

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

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

For the year ended September 30, 2016, the service and distribution fees for each Fund were as follows:

	Service Fees								Distribution Fees
Fund	Class A		Class B		Class C		Admin Class		Class B		Class C		Admin Class
Investment Grade Bond Fund	$	3,382,403	$	68	$	2,724,685	$	84,257	$	203	$	8,174,055	$	95,332
Strategic Income Fund		6,941,287		447		9,358,640		338,024		1,343		28,075,920		349,704

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Notes to Financial Statements (continued)

September 30, 2016

For the year ended September 30, 2016, NGAM Distribution refunded Investment Grade Bond Fund $11,074 and Strategic Income Fund $11,679 of prior year Admin Class service fees paid to NGAM Distribution in excess of amounts subsequently paid to securities dealers or financial intermediaries. Service and distribution fees on the Statements of Operations have been reduced by these amounts.

c.  Administrative Fees.  NGAM Advisors, L.P. (“NGAM Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. NGAM Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts and NGAM Advisors, each Fund pays NGAM 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 and Loomis Sayles Funds Trusts, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0350% of the next $30 billion and 0.0325% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts and Loomis Sayles Funds Trusts of $10 million, which is reevaluated on an annual basis.

For the year ended September 30, 2016, the administrative fees for each Fund were as follows:

Fund	Administrative Fees
Investment Grade Bond Fund	$	3,383,108
Strategic Income Fund		5,501,308

d.  Sub-Transfer Agent Fees.  NGAM Distribution has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Funds and has agreed to compensate the intermediaries for providing those services. Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. These services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly at the Funds’ transfer agent. Accordingly, the Funds have agreed to reimburse NGAM Distribution for all or a portion of the servicing fees paid to these intermediaries. The reimbursement amounts (sub-transfer agent fees) paid to NGAM Distribution are subject to a current per-account equivalent fee limit approved by the Funds’ Board of Trustees, which is based on fees for similar services paid to the Funds’ transfer agent and other service providers. Class N shares do not bear such expenses.

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Notes to Financial Statements (continued)

September 30, 2016

For the year ended September 30, 2016, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:

Fund	Sub-Transfer Agent Fees
Investment Grade Bond Fund	$	9,560,072
Strategic Income Fund		9,411,626

As of September 30, 2016, the Funds owe NGAM Distribution the following reimbursements for sub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as payable to distributor):

Fund	Reimbursements of Sub-Transfer Agent Fees
Investment Grade Bond Fund	$	101,623
Strategic Income Fund		105,500

Sub-transfer agent fees attributable to Class A, Class B, Class C, Class Y, and Admin Class are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes.

e.  Commissions.  Commissions (including CDSCs) on Fund shares retained by NGAM Distribution during the year ended September 30, 2016, were as follows:

Fund	Commissions
Investment Grade Bond Fund	$	127,151
Strategic Income Fund		348,562

f.  Trustees Fees and Expenses.  The Trust does not pay any compensation directly to its officers or Trustees who are directors, officers or employees of NGAM Advisors, NGAM Distribution, Natixis US or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $325,000. 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 $155,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, the chairperson of the Contract Review Committee and the chairperson of the Audit Committee each receive an additional retainer fee at the annual rate of $17,500. The chairperson of the Governance Committee receives an additional retainer fee at the annual rate of $10,000. Each Contract Review Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each

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Notes to Financial Statements (continued)

September 30, 2016

meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts and Loomis Sayles Funds Trusts based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2016, the Chairperson of the Board received a retainer fee at the annual rate of $300,000 and each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $130,000. The chairperson of the Governance Committee received an additional retainer fee at the annual rate of $5,000. All other Trustee fees remained unchanged.

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 al account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain funds of the Natixis Funds Trusts and Loomis Sayles Funds Trusts as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts and Loomis Sayles Funds Trusts, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees in the Statements of Assets and Liabilities.

g.  Affiliated Ownership.  As of September 30, 2016, Loomis Sayles Employees’ Profit Sharing Retirement Plan held shares of Investment Grade Bond Fund representing 0.11% of the Fund’s net assets.

Investment activities of affiliated shareholders could have material impacts on the Fund.

h.  Reimbursement of Transfer Agent Fees and Expenses.  NGAM Advisors had given a binding contractual undertaking to Investment Grade Bond Fund to reimburse any and all transfer agency expenses for the Fund’s Class N shares. This undertaking was in effect through January 31, 2016 and is not subject to recovery under the expense limitation agreement described above.

For the period October 1, 2015 through January 31, 2016, NGAM Advisors reimbursed the Fund $182 for transfer agency expenses related to Class N shares.

i.  Interfund Transactions.  A Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the year ended September 30, 2016,

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Notes to Financial Statements (continued)

September 30, 2016

Investment Grade Bond Fund purchased securities from an affiliated fund in compliance with Rule 17a-7 of the 1940 Act in the amount of $22,783,031.

j.  Payment by Affiliates.  For the year ended September 30, 2016, Loomis Sayles reimbursed Strategic Income Fund $5,861 in connection with a trading error.

6.  Class-Specific Transfer Agent Fees and Expenses.  For the year ended September 30, 2016, the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):

	Transfer Agent Fees and Expenses
Fund	Class A		Class B		Class C		Class N		Class Y		Admin Class
Investment Grade Bond Fund	$	1,756,419	$	35	$	1,412,152	$	595	$	6,711,330	$	49,362
Strategic Income Fund		2,266,734		140		3,057,890		1,514		4,657,585		114,267

Transfer agent fees and expenses attributable to Class A, Class B, Class C, Class Y and Admin Class are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes. Transfer agent fees and expenses attributable to Class N are allocated to Class N.

7.  Line of Credit.  Effective April 14, 2016, the Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, entered into a 364-day, $400,000,000 syndicated, committed, unsecured line of credit with Citibank, N.A. to be used for temporary or emergency purposes only. Any one Fund may borrow up to the full $400,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate do not exceed the $400,000,000 limit at any time) subject to each Fund’s investment restrictions. Interest is charged to the Funds at a rate equal to the greater of the eurodollar or the federal funds rate plus 1.00%. In addition, a commitment fee of 0.10% per annum, payable on the last business day of each month, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit. The Funds paid an arrangement fee, an upfront fee, and other fees in connection with the new line of credit agreement, which are being amortized over a period of 364 days and are reflected as miscellaneous expenses on the Statements of Operations. The unamortized balance is reflected as prepaid expenses on the Statements of Assets and Liabilities.

Prior to April 14, 2016 each Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, participated in a $150,000,000 committed unsecured line of credit provided by State Street Bank. Any one Fund was able to borrow up to the full $150,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate do not exceed the $150,000,000 limit at any time). Interest

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Notes to Financial Statements (continued)

September 30, 2016

was charged to each participating Fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the year ended September 30, 2016, none of the Funds had borrowings under these agreements.

8.  Concentration of Risk.  Each Fund’s investments in foreign securities are subject to foreign currency fluctuations, higher volatility than U.S. securities, varying degrees of regulation and limited liquidity. Greater political, economic, credit and information risks are also associated with foreign securities.

9.  Concentration of Ownership.  From time to time, a Fund may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of such accounts could have material impacts on the Fund. As of September 30, 2016, based on management’s evaluation of the shareholder account base, the Fund had accounts representing controlling ownership of more than 5% of the Fund’s total outstanding shares. The number of such accounts, based on accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings were as follows:

Fund	Number of 5% Account Holders		Percentage of Ownership
Investment Grade Bond Fund		1		16.52	%

Omnibus shareholder accounts for which NGAM Advisors understands that the intermediary has discretion over the underlying shareholder accounts or investment models where a shareholder account may be invested for a non-discretionary customer are included in the table above. For other omnibus accounts, the Fund does not have information on the individual shareholder accounts underlying the omnibus accounts; therefore, there could be other 5% shareholders in addition to those disclosed in the table above.

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Notes to Financial Statements (continued)

September 30, 2016

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

	Year Ended September 30, 2016					Year Ended September 30, 2015
Investment Grade Bond Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	20,129,865		$	224,279,164		50,766,517		$	600,413,342
Issued in connection with the reinvestment of distributions	3,582,279			39,417,631		5,370,833			63,307,123
Redeemed	(72,797,944	)		(812,934,629	)	(69,121,484	)		(805,049,363	)
Net change	(49,085,800	)	$	(549,237,834	)	(12,984,134	)	$	(141,328,898	)
Class B(a)
Issued from the sale of shares	12		$	127		2,376		$	27,982
Issued in connection with the reinvestment of distributions	132			1,428		6,685			78,892
Redeemed	(12,496	)		(135,947	)	(430,116	)		(5,024,441	)
Net change	(12,352	)	$	(134,392	)	(421,055	)	$	(4,917,567	)
Class C
Issued from the sale of shares	6,745,192		$	73,849,989		12,852,371		$	151,180,866
Issued in connection with the reinvestment of distributions	1,779,107			19,337,565		2,611,403			30,561,859
Redeemed	(32,161,581	)		(355,433,705	)	(31,658,857	)		(365,540,475	)
Net change	(23,637,282	)	$	(262,246,151	)	(16,195,083	)	$	(183,797,750	)
Class N
Issued from the sale of shares	3,512,436		$	39,581,827		1,864,131		$	22,024,796
Issued in connection with the reinvestment of distributions	112,583			1,242,105		46,286			540,713
Redeemed	(1,505,453	)		(16,963,552	)	(446,650	)		(5,162,629	)
Net change	2,119,566		$	23,860,380		1,463,767		$	17,402,880
Class Y
Issued from the sale of shares	103,353,597		$	1,157,935,836		185,813,381		$	2,194,472,200
Issued in connection with the reinvestment of distributions	16,305,396			179,657,088		22,378,908			263,725,134
Redeemed	(272,637,548	)		(3,024,227,049	)	(231,275,254	)		(2,685,801,589	)
Net change	(152,978,555	)	$	(1,686,634,125	)	(23,082,965	)	$	(227,604,255	)
Admin Class
Issued from the sale of shares	1,369,518		$	15,254,126		2,406,562		$	28,067,886
Issued in connection with the reinvestment of distributions	53,619			588,562		43,693			512,939
Redeemed	(1,741,799	)		(19,519,799	)	(1,195,940	)		(13,980,365	)
Net change	(318,662	)	$	(3,677,111	)	1,254,315		$	14,600,460
Increase (decrease) from capital share transactions	(223,913,085	)	$	(2,478,069,233	)	(49,965,155	)	$	(525,645,130	)

(a) On January 11, 2016, Class B shares were converted into Class A shares. See Note 1 of Notes to Financial Statements.

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Notes to Financial Statements (continued)

September 30, 2016

10.  Capital Shares (continued).

	Year Ended September 30, 2016					Year Ended September 30, 2015
Strategic Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	23,003,978		$	322,739,399		55,230,250		$	895,787,000
Issued in connection with the reinvestment of distributions	13,635,011			187,725,106		12,108,946			193,880,215
Redeemed	(91,244,683	)		(1,291,828,314	)	(104,911,251	)		(1,667,771,545	)
Net change	(54,605,694	)	$	(781,363,809	)	(37,572,055	)	$	(578,104,330	)
Class B(a)
Issued from the sale of shares	2		$	26		13,353		$	217,477
Issued in connection with the reinvestment of distributions	2,043			28,399		34,044			554,036
Redeemed	(67,108	)		(965,088	)	(1,803,775	)		(29,572,377	)
Net change	(65,063	)	$	(936,663	)	(1,756,378	)	$	(28,800,864	)
Class C
Issued from the sale of shares	14,640,095		$	205,621,637		28,023,664		$	458,267,601
Issued in connection with the reinvestment of distributions	12,554,510			173,747,924		9,349,838			150,703,635
Redeemed	(85,523,361	)		(1,219,267,539	)	(67,101,029	)		(1,075,601,545	)
Net change	(58,328,756	)	$	(839,897,978	)	(29,727,527	)	$	(466,630,309	)
Class N
Issued from the sale of shares	5,321,977		$	77,302,805		3,222,100		$	51,850,092
Issued in connection with the reinvestment of distributions	653,923			9,006,073		254,881			4,061,246
Redeemed	(2,757,797	)		(38,915,311	)	(1,251,091	)		(19,905,109	)
Net change	3,218,103		$	47,393,567		2,225,890		$	36,006,229
Class Y
Issued from the sale of shares	97,346,155		$	1,362,714,589		147,913,821		$	2,394,839,842
Issued in connection with the reinvestment of distributions	26,448,453			364,282,467		23,049,791			368,639,532
Redeemed	(237,195,829	)		(3,355,009,041	)	(215,997,923	)		(3,425,312,747	)
Net change	(113,401,221	)	$	(1,628,011,985	)	(45,034,311	)	$	(661,833,373	)
Admin Class
Issued from the sale of shares	1,775,529		$	24,914,406		2,751,269		$	44,257,130
Issued in connection with the reinvestment of distributions	664,366			9,114,286		426,236			6,794,161
Redeemed	(2,336,993	)		(32,857,996	)	(1,850,865	)		(29,378,191	)
Net change	102,902		$	1,170,696		1,326,640		$	21,673,100
Increase (decrease) from capital share transactions	(223,079,729	)	$	(3,201,646,172	)	(110,537,741	)	$	(1,677,689,547	)

(a) On January 11, 2016, Class B shares were converted into Class A shares. See Note 1 of Notes to Financial Statements.

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Report of Independent Registered Public Accounting Firm

To the Trustees of Loomis Sayles Funds Trust II and Shareholders of Loomis Sayles Strategic Income Fund and Loomis Sayles Investment Grade Bond 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 Strategic Income Fund and Loomis Sayles Investment Grade Bond Fund, each a series of Loomis Sayles Funds Trust II (collectively, the “Funds”) at September 30, 2016, 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 audit 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, 2016 by correspondence with the custodian, agent banks and brokers, provide a reasonable basis for the opinion expressed above.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2016

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2016 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction.  For the fiscal year ended September 30, 2016, 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
Investment Grade Bond		8.49	%
Strategic Income		21.56	%

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, 2016, unless subsequently determined to be different.

Fund	Amount
Investment Grade Bond	$	104,873,569
Strategic Income		732,379,107

Qualified Dividend Income.  For the fiscal year ended September 30, 2016, the Funds below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2016, complete information will be reported in conjunction with Form 1099-DIV.

Fund

Investment Grade Bond

Strategic Income

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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 Funds’ Statement of Additional Information includes additional information about the trustees of the Trust and are available by calling Natixis Funds at 800-225-5478.

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of  Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES
Kenneth A. Drucker (1945)	Trustee since 2008 Chairperson of the Audit Committee and Governance Committee Member	Retired	44 None	Significant experience on the Board and on the boards of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)
Edmond J. English (1953)	Trustee since 2013 Audit Committee Member	Chief Executive Officer of Bob’s Discount Furniture (retail)	44 Director, Burlington Stores, Inc. (retail); Formerly, Director, BJ’s Wholesale Club (retail)	Experience on the Board and significant experience on the boards of other business organizations (including retail companies and a bank); executive experience (including at a retail company)

93  |

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of  Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
Richard A. Goglia (1951)	Trustee since 2015 Audit Committee Member	Retired; formerly Vice President and Treasurer of Raytheon Company (defense)	44 None	Experience on the Board and executive experience (including his role as vice president and treasurer of a defense company and experience at a financial services company)
Wendell J. Knox (1948)	Trustee since 2009 Contract Review Committee Member and Governance Committee Member	Director of Abt Associates Inc. (research and consulting)	44 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the boards of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

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Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of  Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
Martin T. Meehan (1956)	Trustee since 2012 Contract Review Committee Member	President, University of Massachusetts; formerly, Chancellor and faculty member, University of Massachusetts Lowell	44 None	Experience on the Board and on the boards of other business organizations; experience as President of the University of Massachusetts; government experience (including as a member of the U.S. House of Representatives); academic experience
Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee since 2003 Ex Officio member of the Audit Committee, the Contract Review Committee and the Governance Committee	President, Strategic Advisory Services (management consulting)	44 Formerly, Director, AES Corporation (international power company); formerly, Director, Verizon Communications (telecommunications company)	Significant experience on the Board and on the boards of other business organizations (including at a telecommunications company, an international power company and a specialty chemicals corporation); executive experience (including at a management consulting company)

95  |

Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of  Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
James P. Palermo (1955)	Trustee since 2016 Contract Review Committee Member	Founding Partner, Breton Capital Management, LLC (private equity); formerly, Chief Executive Officer of Global Client Management of The Bank of New York Mellon Corporation	44 None	Experience on the Board; financial services industry and executive experience (including roles as chief executive officer of client management and asset servicing for a banking and financial services company)
Erik R. Sirri (1958)	Trustee since 2009 Audit Committee Member	Professor of Finance at Babson College	44 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist
Peter J. Smail (1952)	Trustee since 2009 Chairperson of the Contract Review Committee and Governance Committee Member	Retired	44 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

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Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of  Office1	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen2 and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES continued
Cynthia L. Walker (1956)	Trustee since 2005 Chairperson of the Governance Committee and Contract Review Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine	44 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)
INTERESTED TRUSTEES
Kevin P. Charleston3 (1965) One Financial Center Boston, MA 02111	Trustee since 2015	President, Chief Executive Officer and Director; formerly, Chief Financial Officer, Loomis, Sayles & Company, L.P.	44 None	Experience on the Board; continuing service as President, Chief Executive Officer and Director of Loomis, Sayles & Company, L.P.
David L. Giunta4 (1965)	Trustee since 2011 President since 2008 and Chief Executive Officer since 2015	President and Chief Executive Officer, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.	44 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer of NGAM Advisors, L.P.
John T. Hailer5 (1960)	Trustee since 2003	President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.	44 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

¹ Each trustee serves until retirement, resignation or removal from the Board. The current retirement age is 75. The position of Chairperson of the Board is appointed for a three-year term. Ms. Moose was appointed to serve an additional three-year term as the Chairperson of the Board on December 13, 2013.

97  |

Trustee and Officer Information

² The trustees of the Trust serve as trustees of a fund complex that includes all series of the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV and Gateway Trust (collectively, the “Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (collectively, the “Loomis Sayles Funds Trusts”) and Natixis ETF Trust (collectively, the “Fund Complex”).

³ Mr. Charleston is deemed an “interested person” of the Trust because he holds the following positions with an affiliated person of the Trust: President and Chief Executive Officer of Loomis, Sayles & Company, L.P.

⁴ Mr. Giunta is deemed an “interested person” of the Trust because he holds the following positions with an affiliated person of the Trust: President and Chief Executive Officer of NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

⁵ Mr. Hailer is deemed an “interested person” of the Trust because he holds the following positions with an affiliated person of the Trust: President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

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Trustee and Officer Information

Name and Year of Birth	Position(s) Held with the Trust(s)	Term of Office1 and Length of Time Served	Principal Occupation(s) During Past 5 Years2
OFFICERS OF THE TRUST
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.
Russell L. Kane (1969)	Secretary, Clerk and Chief Legal Officer	Since July 2016	Executive Vice President, General Counsel, Secretary and Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.; formerly, Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.
Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, NGAM Advisors, L.P. and NGAM Distribution, L.P.
Rosa Licea-Mailloux (1976)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Since July 2016	Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.; formerly, Associate General Counsel, NGAM Distribution, L.P.

¹ Each officer of the Trust serves for an indefinite term in accordance with the Trust’s current by-laws until the date his or her successor is elected and qualified, or until he or she sooner dies, retires, is removed or becomes disqualified.

² Each person listed above, except as noted, holds the same position(s) with the Fund Complex. Mr. Fuss is not an officer of the Natixis Funds Trusts. Previous positions during the past five years with NGAM Distribution, L.P., NGAM Advisors, L.P. or Loomis, Sayles & Company, L.P. are omitted, if not materially different from a trustee’s or officer’s current position with such entity.

99  |

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer and persons performing similar functions. There have been no amendments or waivers of the Registrant’s code of ethics during the period.

Item 3. Audit Committee Financial Expert.

The Board of Trustees of the Registrant has established an audit committee. Mr. Kenneth A. Drucker, Mr. Edmond J. English, Mr. Richard A. Goglia, and Mr. Erik R. Sirri 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
	10/1/14- 9/30/15		10/1/15- 9/30/16		10/1/14- 9/30/15		10/1/15- 9/30/16		10/1/14- 9/30/15		10/1/15- 9/30/16		10/1/14- 9/30/15		10/1/15- 9/30/16
Loomis Sayles Funds II	$	364,796	$	377,341	$	4,574	$	4,498	$	130,087	$	80,572	$	—	$	—

1. Audit-related fees consist of:

2015 & 2016 – performance of agreed-upon procedures related to the Registrant’s deferred compensation plan.

2. Tax fees consist of:

2015 & 2016 – review of Registrant’s tax returns, tax consulting services and review of liquidating fund distributions.

Aggregate fees billed to the Registrant for non-audit services during 2015 and 2016 were $134,662 and $85,070, respectively.

Fees billed by the Principal Accountant for services rendered to the Adviser and Control Affiliates.

The following table sets forth the fees billed by the Registrant’s principal accountant for non-audit services rendered to Loomis, Sayles & Company, L.P. and entities controlling, controlled by or under common control with Loomis, Sayles & Company, L.P. Registrant (“Control Affiliates”) that provide ongoing services to the Registrant, for engagements that related directly to the operations and financial reporting of the Registrant for the last two fiscal years.

Audit-related fees

Tax fees

All other fees

10/1/14- 9/30/15

10/1/15- 9/30/16

10/1/14- 9/30/15

10/1/15- 9/30/16

10/1/14- 9/30/15

10/1/15- 9/30/16

Control Affiliates

$

—

$

—

$

—

$

—

$

—

$

—

The following table sets forth the aggregate fees billed by the Registrant’s principal accountant for non-audit services rendered to Loomis, Sayles & Company, L.P. and Control Affiliates that provide ongoing services to the Registrant, for the last two fiscal years, including the fees disclosed in the table above.

	Aggregate Non-Audit Fees
	10/1/14-9/30/15		10/1/15-9/30/16
Control Affiliates	$	50,066	$	119,120

None of the services described above were approved pursuant to (c)(7)(i)(C) of Regulation S-X.

Audit Committee Pre Approval Policies.

Annually, the Registrant’s Audit Committee reviews the audit, audit-related, tax and other non-audit services together with the projected fees, for services proposed to be rendered to the 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/ David L. Giunta
Name:	David L. Giunta
Title:	President and Chief Executive Officer
Date:	November 21, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ David L. Giunta
Name:	David L. Giunta
Title:	President and Chief Executive Officer
Date:	November 21, 2016
By:	/s/ Michael C. Kardok
Name:	Michael C. Kardok
Title:	Treasurer
Date:	November 21, 2016