Loomis Sayles Small Cap Growth Fund Class N NCSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-06241

Loomis Sayles Funds II

(Exact name of Registrant as specified in charter)

399 Boylston Street, Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

Coleen Downs Dinneen, Esq.

Natixis Distributors, L.P.

399 Boylston Street

Boston, Massachusetts 02116

(Name and address of agent for service)

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

Date of fiscal year end: September 30

Date of reporting period: March 31, 2011

Item 1. Reports to Stockholders.

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

SEMIANNUAL REPORT

March 31, 2011

LOGO

Loomis Sayles Core Plus Bond Fund

Loomis Sayles High Income Fund

Loomis Sayles International Bond Fund

Loomis Sayles Limited Term Government and Agency Fund

Loomis Sayles Strategic Income Fund

Loomis, Sayles & Company, L.P.

TABLE OF CONTENTS

Management Discussion and Investment Results page 1

Portfolio of Investments page 15

Financial Statements page 48

LOOMIS SAYLES CORE PLUS BOND FUND

Management Discussion

Managers:

Peter W. Palfrey, CFA

Richard G. Raczkowski

Loomis, Sayles & Company, L.P.

Objective:

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

Strategy:

Invests primarily in fixed income securities

Fund Inception:

November 7, 1973

Symbols:


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

What You Should Know:

Investments in the Fund are subject to a number of risks. Please see the “Principal Risks” section of the Fund’s prospectus. The purchase of Fund shares should be seen as a long-term investment.

Market Conditions

Sentiment in the domestic fixed-income markets remained healthy despite disruptions abroad – including financial disturbances in Europe, civil unrest in the Middle East and the massive earthquake and nuclear crisis in Japan. Improving economic growth prospects in the United States encouraged the Federal Reserve Board (the Fed) to maintain its commitment to a low-interest-rate policy. The resulting environment sent investors in search of higher yields, causing interest rates in the United States to rise, on average. As investors intensified their search for income, sectors that offered a yield advantage over Treasuries benefited from steady demand. The best performers were higher-yielding issues, including investment-grade bonds and mortgage-backed securities (MBS).

Performance Results

For the six months ended March 31, 2011, Class A shares of Loomis Sayles Core Plus Bond Fund returned 1.11% at net asset value. For the same period, the fund’s benchmark, Barclays Capital U.S. Aggregate Bond Index, returned -0.88%, while the average return of funds in Morningstar’s Intermediate-Term Bond category was 0.12%.

Explanation of Fund Performance

An emphasis on corporate bonds and an underweight relative to the benchmark in U.S. Treasuries aided the fund’s performance. These positions more than offset the impact of the fund’s longer duration (a measure of interest rate sensitivity), which detracted from performance as interest rates rose, and its below-benchmark exposure to MBS, which outperformed during the period.

Strong security selection and sector allocation among corporate bonds were the primary drivers of the fund’s standout performance relative to its benchmark. Exposure to high-yield securities, which are not part of the benchmark, was especially positive. In particular, the fund’s holdings of cyclical industrial high-yield bonds, which were positioned to benefit from global economic recovery, did well. We trimmed securities that had outperformed and added to well-financed issuers with solid balance sheets and leading market positions. In February, we reduced the fund’s near maximum allocation to high yield and swapped the proceeds into Treasuries. However, we moved back into the sector in March after riskier assets sold off in response to problems in Japan’s markets. In addition, we favored investment-grade bonds rated A and BBB, focusing on securities that we believed offered the best value. Here too, we harvested gains when we thought the securities had fully recovered in price.

Throughout the six-month period, the fund maintained its focus on higher- quality commercial mortgage-backed securities (CMBS). We added to holdings, taking advantage of a brief sell-off that made the sector even more attractive. The fund also had more exposure than the benchmark to asset-backed securities (ABS), which aided performance. During the period, we added to higher-quality, shorter-term loans. And, we raised exposure to MBS after the Fed announced that it would unwind its MBS portfolio over time.

To position the fund more defensively, we sold the remainder of the fund’s exposure to foreign currencies, swapping proceeds into higher-coupon MBS. Late in March, 2011, we also initiated a short position in the euro, to express our bearish view of the currency (and a more constructive view on the dollar) and to hedge the overall risk in the portfolio.

Outlook

We believe the portfolio is well positioned for a longer-term recovery in the U.S. and global markets. Our goal is to maintain sufficient flexibility to move in and out of markets to maintain the fund’s yield advantage and to execute tactical and opportunistic trades. In this regard, we plan to maintain the fund’s underweight relative to the benchmark in government securities and overweight in the investment-grade, high-yield and CMBS markets. We also plan to maintain the fund’s “barbell” configuration, emphasizing both longer- and shorter-term securities. Given current market conditions and increasing volatility, we may take steps to become more defensive by shortening the fund’s duration later in the year.

1 |

LOOMIS SAYLES CORE PLUS BOND FUND

Investment Results through March 31, 2011

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

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

March 31, 2001 through March 31, 2011

LOGO

Average Annual Returns — March 31, 2011⁴



	6 Months			1 Year			5 Years			10 Years

Class A (Inception 11/7/73)
Net Asset Value¹		1.11	%		9.09	%		8.04	%		6.08	%
With Maximum Sales Charge²		-3.44			4.18			7.05			5.60

Class B (Inception 9/13/93)
Net Asset Value¹		0.72			8.22			7.24			5.31
With CDSC³		-4.21			3.22			6.93			5.31

Class C (Inception 12/30/94)
Net Asset Value¹		0.65			8.19			7.23			5.30
With CDSC³		-0.34			7.19			7.23			5.30

Class Y (Inception 12/30/94)
Net Asset Value¹		1.23			9.40			8.33			6.43

Comparative Performance
Barclays Capital U.S. Aggregate Bond Index		-0.88			5.12			6.03			5.56
Morningstar Int.-Term Bond Fund Avg.		0.12			6.16			5.50			5.15

All returns represent past performance and do not guarantee future results. Periods of less than one year are not annualized. Share price and return will vary and you may have a gain or loss when you sell your shares. All results include reinvestment of dividends and capital gains. Current returns may be higher or lower than those shown. For performance current to the most recent month-end, visit ga.natixis.com. Class Y shares are not available for purchase by all investors. The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.


Credit Quality	% of Net Assets as of 3/31/11*
Aaa		43.1
Aa		6.2
A		6.2
Baa		24.4
Ba		14.7
B		3.2
Not Rated		0.5
Short-term and other		1.7

Credit quality at 3/31/2011 reflects the highest credit rating assigned to individual holdings of the fund among Moody’s, S&P or Fitch; ratings are subject to change. The fund’s share are not rated by any rating agency and no credit rating for fund shares is implied. The Moody’s equivalent of the assigned rating is presented in the table.


Effective Duration	% of Net Assets as of 3/31/11
1 year or less		5.3
1-5 years		44.4
5-10 years		36.3
10+ years		14.0
Average Effective Duration		6.1	years

Portfolio characteristics will vary.

Expense Ratios

as stated in the most recent prospectus


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

NOTES TO CHARTS

See page 11 for a description of the indices.

1	At Net Asset Value (NAV) - does not reflect payment of sales charge at time of purchase.

2	With Maximum Sales Charge (MSC) - reflects maximum sales charge of 4.50% at time of purchase.

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

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

5	Before fee waivers and/or expense reimbursements.

6	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire on 1/31/12. Contracts are reevaluated on an annual basis.

| 2

LOOMIS SAYLES HIGH INCOME FUND

Management Discussion

Managers:

Matthew J. Eagan, CFA

Kathleen C. Gaffney, CFA

Associate Manager:

Elaine M. Stokes

Loomis, Sayles & Company, L.P.

Objective:

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

Strategy:

Invests primarily in below investment-grade fixed-income securities

Fund Inception:

February 22, 1984

Symbols:


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

What You Should Know:

Market Conditions

A gradual improvement in the global economy, stronger corporate balance sheets and improvements in the U.S. labor market boosted investor confidence during the six months ended March 31, 2011. The positive environment helped stimulate optimism in both the fixed-income and equity markets. As money flowed freely, debt issuers continued to refinance old lines of credit at increasingly beneficial terms, while investors reached for yield in a continuing environment of low interest rates. However, political upheavals in the Middle East and Northern Africa and banking sector troubles in Europe unsettled foreign debt markets, adding to volatility. At the same time, a massive earthquake and tsunami in Japan caused damage to that country’s infrastructure bringing concerns that Japan, one of the largest holders of U.S. Treasury securities, might liquidate positions to fund reconstruction and short-term operations. In this environment, high-yield bonds generally outperformed investment-grade bonds.

Performance Results

For the six months ended March 31, 2011, Class A shares of Loomis Sayles High Income Fund returned 8.23% at net asset value. The fund outperformed its benchmark, the Barclays Capital U.S. Corporate High-Yield Bond Index, which returned 7.23%. The fund also outperformed the 7.34% average return of funds in its peer group, the Morningstar High Yield Bond category.

Explanation of Fund Performance

Strong security selection and allocations to some issues not in the benchmark helped the fund outperform. Although quality-based returns were mixed, high-yield credits tended to outperform their investment-grade counterparts. High-yield industrials, utilities and financials continued to provide attractive returns as the economy strengthened and investors grew more comfortable with taking greater risk in pursuit of higher yields. Investments in convertibles and a small position in equities, neither of which is included in the benchmark, also helped boost fund returns higher than the benchmark. These holdings benefited from an equity market rally during the period. In addition, the fund’s exposure to the Australian dollar, as well as the Colombian and Uruguayan pesos, made a positive contribution to performance.

Although investment-grade securities and securities denominated in foreign currencies provided positive returns, the returns they generated were not as strong as the return of the benchmark. The only negative returns came from a small position in U.S. government securities, which lagged as investors embraced risk.

Outlook

Strong liquidity, markets in transition, geopolitical turmoil, continued economic recovery and tragic natural disasters garnered significant attention from market participants during the first quarter of 2011. Many of these themes will continue to dominate investor consciousness going forward. We believe markets remain in transition regarding interest rates, with pressures building both globally and domestically. Globally, growth in many areas of the world remains robust; however, inflation concerns have begun to attract attention. Central banks will likely continue to shift toward less accommodative policy as 2011 progresses. We anticipate the Fed’s program of Treasury purchases in the United States, which is referred to as “QE2” (short for quantitative easing), will end during the second quarter and believe the U.S. economic recovery has sufficient momentum to continue expanding without outsized government stimulus.

Our assessment of the fundamental underpinnings of the corporate sector remains positive. In general, corporations are proceeding conservatively with regard to hiring and capital expenditures. Merger and acquisition activity has increased recently, and we believe there is room for more growth in that space. Valuations in the corporate bond space are generally fair, with investor demand for yield providing support and liquidity to the high-yield, investment-grade and convertible sectors. We continue to position the fund for global economic recovery, as well as a gradual upward bias in interest rates. We continue to emphasize yield advantage, global diversification and specific bond picking within the fund.

3 |

LOOMIS SAYLES HIGH INCOME FUND

Investment Results through March 31, 2011

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

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

March 31, 2001 through March 31, 2011

LOGO

Average Annual Returns — March 31, 2011⁴



	6 Months			1 Year			5 Years			10 Years			Since Class Y Inception⁷

Class A (Inception 2/22/84)
Net Asset Value¹		8.23	%		13.86	%		7.81	%		5.76	%		—
With Maximum Sales Charge²		3.38			8.67			6.82			5.28			—

Class B (Inception 9/20/93)
Net Asset Value¹		7.80			12.97			7.01			4.96			—
With CDSC³		2.80			7.97			6.70			4.96			—

Class C (Inception 3/2/98)
Net Asset Value¹		7.61			13.01			6.99			4.95			—
With CDSC³		6.61			12.01			6.99			4.95			—

Class Y (Inception 2/29/08)
Net Asset Value¹		8.38			14.17			—			—			10.00

Comparative Performance
Barclays Capital U.S. Corporate High-Yield Bond Index		7.23			14.31			9.12			8.63			12.44
Morningstar High Yield Bond Fund Avg.		7.34			13.58			6.86			6.85			9.45

All returns represent past performance and do not guarantee future results. Periods of less than one year are not annualized. Share price and return will vary and you may have a gain or loss when you sell your shares. All results include reinvestment of dividends and capital gains. Current returns may be higher or lower than those shown. For performance current to the most recent month-end, visit ga.natixis.com. Performance history includes periods from a predecessor fund. Class Y shares are not available for purchase by all investors. The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.


Credit Quality	% of Net Assets as of 3/31/11*
Aaa		5.2
Aa		3.4
A		7.1
Baa		4.9
Ba		26.0
B		28.3
Caa and lower		6.3
Not Rated		6.4
Short-term and other		12.4


Effective Maturity	% of Net Assets as of 3/31/11
1 year or less		15.2
1-5 years		26.4
5-10 years		24.1
10+ years		34.3
Average Effective Maturity		9.4	years

Portfolio characteristics will vary.

Expense Ratios

as stated in the most recent prospectus


Share Class	Gross Expense Ratio⁵			Net Expense Ratio⁶
A		1.20	%		1.15	%
B		1.94			1.90
C		1.95			1.90
Y		0.93			0.90

NOTES TO CHARTS

See	page 11 for a description of the indices.

1	At Net Asset Value (NAV) - does not reflect payment of sales charge at time of purchase.

2	With Maximum Sales Charge (MSC) - reflects maximum sales charge of 4.50% at time of purchase.

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

5	Before fee waivers and/or expense reimbursements.

6	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire on 1/31/12. Contracts are reevaluated on an annual basis.

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

| 4

LOOMIS SAYLES INTERNATIONAL BOND FUND

Management Discussion

Managers:

David W. Rolley, CFA

Kenneth M. Buntrock, CFA, CIC

Lynda L. Schweitzer, CFA

Loomis, Sayles & Company, L.P.

Objective:

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

Strategy:

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

Fund Inception:

February 1, 2008

Symbols:


Class A		LSIAX
Class C		LSICX
Class Y		LSIYX

What You Should Know:

Market Conditions

Riskier sectors produced the best performance in global fixed-income markets for the six months ended March 31, 2011, despite increasing uncertainty created by higher oil prices, turmoil in the Middle East, a major disaster in Japan and growing doubts about some European sovereign debt. Against a backdrop of rising interest rates and strengthening economies, credit-sensitive securities outperformed comparable-duration government securities. (Duration is a measure of interest rate risk.) The returns from lower-quality bonds outpaced results from investments in higher-quality securities. Meanwhile, the U.S. dollar declined relative to major foreign currencies.

Performance Results

For the six months ended March 31, 2011, Class A shares of Loomis Sayles International Bond Fund returned 1.98% at net asset value. The fund outperformed its benchmark, the Barclays Capital Global Aggregate ex-USD Bond Index, which returned 0.44%. The fund also outperformed the 0.25% average return of funds in its peer group, the Morningstar World Bond category.

Explanation of Fund Performance

Good security selection, which resulted in an emphasis on corporate bonds and a de-emphasis on government securities, was generally responsible for the fund’s strong performance relative to its benchmark. Within the corporate bond sector, we focused on companies that were positioned to benefit from a growing economy, such as the technology, communications and banking industries, which helped performance. In addition, the fund had more exposure than the benchmark to lower-tier investment-grade securities, and in higher-yielding, below-investment-grade debt, which also helped support results. As the U.S. dollar drifted lower, an emphasis on developing and non-core currencies (non-U.S. dollar, Japanese yen and euro) gave a further boost to the fund’s relative results. In particular, investments denominated in the currencies of Indonesia, Malaysia, Mexico and Singapore helped, as did positions in the currencies of Norway and Sweden, where the fund’s exposure was greater than the index.

Overall, the fund’s defensive interest-rate positioning aided performance as yields rose. However, the fund’s euro positioning slightly dampened results because its duration was longer, on average, than the benchmark. And because the euro appreciated relative to the U.S. dollar, the fund lost some additional ground because it had less exposure to the euro than the benchmark. An emphasis on bonds issued in the United States also hurt the fund’s performance versus the benchmark. As part of our strategy, we traded currency contracts to align the currency exposure of foreign holdings. The trade in these currency-related derivatives had a positive effect on results.

Outlook

While we recognize that there are risks to growth going forward, we remain optimistic that the global economy will continue to expand. As a result, we have favored corporate bonds, although we have reduced exposure to higher interest rates by becoming more defensive with investments in developed markets. In addition, we believe it still makes sense to maintain positions in emerging markets, commodity-linked currencies and in Asian markets other than Japan. We have positioned the portfolio with a focus on Asian currencies, other than the Japanese yen, as we expect central banks in Asia to tighten monetary policy, which should be positive for their currencies. In Europe, we think it is becoming more likely that the European Central Bank will raise short-term interest rates to respond to rising inflationary pressures fueled by higher oil prices. As a consequence, the yield difference between short-term rates in the United States and in Europe should widen, giving support to the value of the euro.

One note of caution, however, is that we expect an increase in volatility in equity markets when the U.S. Federal Reserve Board ends its second round of quantitative easing (QE2), which involves the large-scale purchase of Treasury securities. This could have an impact on credit-sensitive securities in the fixed-income market as well. However, we believe the impact would be relatively minor as long as global growth prospects remain firm.

5 |

LOOMIS SAYLES INTERNATIONAL BOND FUND

Investment Results through March 31, 2011

Growth of $10,000 Investment in Class A Shares⁴

February 1, 2008 (inception) through March 31, 2011

LOGO

Average Annual Returns — March 31, 2011⁴



	6 Months			1 Year			Since Inception

Class A (Inception 2/1/08)
Net Asset Value¹		1.98	%		10.97	%		6.66	%
With Maximum Sales Charge²		-2.64			6.02			5.13

Class C (Inception 2/1/08)
Net Asset Value¹		1.61			10.12			5.85
With CDSC³		0.62			9.12			5.85

Class Y (Inception 2/1/08)
Net Asset Value¹		2.20			11.35			6.90

Comparative Performance
Barclays Capital Global Aggregate ex-USD Bond Index		0.44			8.63			4.80
Morningstar World Bond Fund Avg.		0.25			7.25			5.44


Credit Quality	% of Net Assets as of 3/31/11*
Aaa		41.3
Aa		27.4
A		10.1
Baa		9.8
Ba		8.1
B		1.6
Short-term and other		1.7


Effective Maturity	% of Net Assets as of 3/31/11
1 year or less		3.9
1-5 years		37.2
5-10 years		43.6
10+ years		15.3
Average Effective Maturity		7.2	years

Portfolio characteristics will vary.

Expense Ratios

as stated in the most recent prospectus


Share Class	Gross Expense Ratio⁵			Net Expense Ratio⁶
A		1.49	%		1.10	%
C		2.24			1.85
Y		1.23			0.85

NOTES TO CHARTS

See page 11 for a description of the indices.

1	At Net Asset Value (NAV) - does not reflect payment of sales charge at time of purchase.

2	With Maximum Sales Charge (MSC) - reflects maximum sales charge of 4.50% at time of purchase.

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

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

5	Before fee waivers and/or expense reimbursements.

6	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire on 1/31/12. Contracts are reevaluated on an annual basis.

| 6

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

Management Discussion

Managers:

John Hyll

Clifton V. Rowe, CFA

Loomis, Sayles & Company, L.P.

Objective:

Seeks a high current return consistent with preservation of capital

Strategy:

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

Fund Inception:

January 3, 1989

Symbols:


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

What You Should Know:

Market Conditions

During the six months ended March 31, 2011, sentiment in the domestic bond markets remained relatively healthy, despite many disruptions from overseas – including financial market disturbances in Europe, civil disruption in the Middle East and an earthquake and nuclear crisis in Japan. Even though the Federal Reserve Board (the Fed) maintained its commitment to a low-interest-rate policy, improved domestic economic growth prospects nudged U.S. interest rates higher. As yield-hungry investors intensified their search for income, securities that offered a yield advantage over Treasuries benefited from steady demand. The high-yield and investment-grade sectors were the most rewarding segments of the bond market during the period.

Performance Results

For the six months ended March 31, 2011, Class A shares of Loomis Sayles Limited Term Government and Agency Fund returned 0.51% at net asset value. The fund outperformed its benchmark, the Barclays Capital U.S. 1-5 Year Government Bond Index, which returned -0.56%, and the -0.21% average return of the funds in its peer group, the Morningstar Short Government category.

Explanation of Fund Performance

A combination of favorable security selection and sector allocation drove the fund’s performance advantage over its benchmark. The fund’s emphasis on commercial mortgage-backed securities (CMBS) and allocations to agency mortgage-backed securities (MBS) and asset-backed securities (ABS) drove excess returns for the fund. The fund had more exposure than the benchmark to CMBS, which were solid performers for the period. Most of the fund’s CMBS holdings were senior securities acquired in 2008 and 2009 when bond prices were severely depressed. Investor demand for yield in the intervening months has driven up the prices of these bonds, and the fund has profited. The fund’s allocations to 15- and 30-year agency MBS outperformed the benchmark by a significant margin. Within ABS, we focused on high-quality loans backed by auto equipment. We believed these bonds offered a yield advantage. This decision was rewarded as investor demand for high-quality bonds at the short end of the yield curve was strong.

Overall, the fund’s interest-rate positioning was neutral for performance. The benefit of the fund’s modestly shorter duration (a measure of interest rate sensitivity) was largely offset by the negative impact of its “barbelled” configuration: We emphasized longer- and shorter-term issues rather than distributing assets in a more balanced fashion across the yield curve. This positioning detracted from performance as long-term yields increased more than short-term yields.

The fund’s emphasis on higher-quality securities hampered performance, as lower-quality securities outperformed. Agency debentures in the fund underperformed those in the benchmark, which also detracted from returns.

Late in the period we added some adjustable-rate securities of government sponsored enterprises (GSEs) to the portfolio, because we expect them to perform well in a stable-to-rising interest-rate environment. GSEs are a group of financial services corporations that were created by Congress to enhance the flow of credit to certain sectors of the market, such as agriculture, home finance and education, and to make these segments more efficient and transparent.

Outlook

We believe that the Fed will continue its current interest-rate policy well into 2011. In the intermediate term, we expect interest rates to rise gradually if modest U.S. economic growth persists. While we believe the mortgage and consumer loan markets will continue to struggle, we think the fund’s holdings offer the potential for attractive risk-adjusted returns. The portfolio remains overweight in CMBS and ABS, and we look for further strength from its GSE holdings. Our strategy will be to continue to emphasize opportunities for income over potential price appreciation.

7 |

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

Investment Results through March 31, 2011

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

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

March 31, 2001 through March 31, 2011

LOGO

Average Annual Returns — March 31, 2011⁴



	6 Months			1 Year			5 Years			10 Years

Class A (Inception 1/3/89)
Net Asset Value¹		0.51	%		3.30	%		5.41	%		4.37	%
With Maximum Sales Charge²		-2.49			0.16			4.77			4.05

Class B (Inception 9/27/93)
Net Asset Value¹		0.22			2.53			4.64			3.62
With CDSC³		-4.71			-2.47			4.30			3.62

Class C (Inception 12/30/94)
Net Asset Value¹		0.14			2.53			4.63			3.63
With CDSC³		-0.85			1.53			4.63			3.63

Class Y (Inception 3/31/94)
Net Asset Value¹		0.72			3.55			5.68			4.66

Comparative Performance
Barclays Capital U.S. 1-5 Year Government Bond Index		-0.56			2.67			4.90			4.29
Morningstar Short Gov’t Fund Avg.		-0.21			2.23			4.08			3.52

All returns represent past performance and do not guarantee future results. Periods of less than one year are not annualized. Share price and return will vary and you may have a gain or loss when you sell your shares. All results include reinvestment of dividends and capital gains. Current returns may be higher or lower than those shown. For performance current to the most recent month-end, visit ga.natixis.com. Performance history includes periods from a predecessor fund. Class Y shares are not available for purchase by all investors. The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.


Fund Composition	% of Net Assets as of 3/31/11
Treasuries		23.3
Mortgage Related		19.0
Government Owned - No Guarantee		17.4
Commercial Mortgage-Backed Securities		15.0
Hybrid ARMs		12.9
Government Sponsored		3.6
Collateralized Mortgage Obligations		2.7
ABS Car Loan		2.3
Government Guaranteed		1.0
ABS Credit Card		0.8
ABS Student Loan		0.3
ABS Home Equity		0.3
Short-term and Other		1.4

Effective Maturity	% of Net Assets as of 3/31/11
1 year or less		14.2
1-5 years		69.3
5-10 years		16.5
Average Effective Maturity		2.8	years

Portfolio characteristics will vary.

Expense Ratios

as stated in the most recent prospectus


Share Class	Gross Expense Ratio⁵			Net Expense Ratio⁶
A		0.97	%		0.85	%
B		1.72			1.60
C		1.72			1.60
Y		0.71			0.60

NOTES TO CHARTS

See page 11 for a description of the indices.

1	At Net Asset Value (NAV) - does not reflect payment of sales charge at time of purchase.

2	With Maximum Sales Charge (MSC) - reflects maximum sales charge of 3.00% at time of purchase.

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

5	Before fee waivers and/or expense reimbursements.

6	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire on 1/31/12. Contacts are reevaluated on an annual basis.

| 8

LOOMIS SAYLES STRATEGIC INCOME FUND

Management Discussion

Managers:

Daniel J. Fuss, CFA, CIC

Kathleen C. Gaffney, CFA

Associate Managers:

Matthew J. Eagan, CFA

Elaine M. Stokes

Loomis, Sayles & Company, L.P.

Objective:

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

Strategy:

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

Fund Inception:

May 1, 1995

Symbols:


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

What You Should Know:

Market Conditions

As a fragile economic recovery evolved into steadier growth, investors adopted a more optimistic view of the economy. This optimism prevailed for most of the past six months. Credit markets enjoyed a new wave of liquidity, chiefly by way of new issues. Companies sought to replace older, higher-interest debt, benefiting both high-yield and investment-grade markets.

However, the transition was not without problems. Europe faced renewed sovereign debt concerns. Widespread violence in North Africa and the Middle East brought new bouts of anxiety. In addition, earthquakes in Japan and New Zealand, coming atop China’s efforts to cool its economy, periodically rattled global credit markets, as bond investors grew wary of taking on added risk. The Federal Reserve Board’s (the Fed’s) second round of quantitative easing, known as “QE2,” which involves large-scale purchases of Treasury securities, helped moderate concerns.

Performance Results

For the six months ended March 31, 2011, Class A shares of Loomis Sayles Strategic Income Fund returned 5.95% at net asset value. The fund outperformed its benchmark, the Barclays Capital U.S. Aggregate Bond Index, which returned -0.88% over the same period. The fund also outdistanced the 3.30% average return of funds in its peer group, the Morningstar Multisector Bond category.

Explanation of Fund Performance

Security selection, holdings of convertible bonds and preferred securities, non-U.S. dollar-denominated investments and high-yield credit were key contributors to the period’s impressive returns.

The stock market’s vigor meant increased prices for the fund’s equity-sensitive convertible bonds and preferred securities. In Europe, major currencies strengthened in response to favorable euro zone bank stress tests. A weaker U.S. dollar fed strong results for the fund’s holdings denominated in several currencies, notably the Canadian, Australian and New Zealand dollars, as well as the Norwegian krone. Returns were modestly positive for holdings in Asian currencies, including the Indonesian rupiah, the Singapore dollar and South Korean won.

The industrials sector led the way among the fund’s high-yield holdings. The strongest returns came from individual issues in the information technology, communications and consumer non-cyclical industries. The fund also benefited from its exposure to high-yield financials. A below-benchmark commitment to U.S. Treasury obligations added to results, as fixed-income investors sold Treasuries and accepted some risk in pursuit of more satisfactory yields.

By contrast, relative underweights among securities backed by commercial or residential mortgages held back comparative returns as prices rose. Small positions in government-owned securities, where the fund’s long average duration left prices vulnerable to rising rates, also hampered return.

Outlook

Strong liquidity, markets in transition, geopolitical turmoil, continued economic recovery and tragic natural disasters garnered significant attention from market participants during the first quarter of 2011. Many of these themes will continue to dominate investor consciousness going forward. We believe markets remain in transition regarding interest rates, with pressures building both globally and domestically. Globally, growth in many areas of the world remains robust; however, inflation concerns have begun to attract attention. Central banks will likely continue to shift toward less accommodative policy as 2011 progresses. We anticipate the Fed’s program of Treasury purchases in the United States will end during the second quarter and believe the U.S. economic recovery has sufficient momentum to continue expanding without outsized government stimulus.

9 |

LOOMIS SAYLES STRATEGIC INCOME FUND

Investment Results through March 31, 2011

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

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

March 31, 2001 through March 31, 2011

LOGO

Average Annual Returns — March 31, 2011⁵



	6 Months			1 Year			5 Years			10 Years

Class A (Inception 5/1/95)
Net Asset Value²		5.95	%		12.06	%		7.95	%		10.75	%
With Maximum Sales Charge³		1.19			7.04			6.97			10.25

Class B (Inception 5/1/95)
Net Asset Value²		5.51			11.14			7.14			9.92
With CDSC⁴		0.51			6.14			6.83			9.92

Class C (Inception 5/1/95)
Net Asset Value²		5.52			11.15			7.15			9.92
With CDSC⁴		4.52			10.15			7.15			9.92

Class Y (Inception 12/1/99)
Net Asset Value²		6.08			12.35			8.23			11.04

Admin Class (Inception 2/1/10)¹
Net Asset Value²		5.85			11.75			7.64			10.38

Comparative Performance
Barclays Capital U.S. Aggregate Bond Index		-0.88			5.12			6.03			5.56
Barclays Capital U.S. Universal Bond Index		-0.37			5.73			6.12			5.82
Morningstar Multisector Bond Fund Avg.		3.30			9.36			6.49			7.45

All returns represent past performance and do not guarantee future results. Periods of less than one year are not annualized. Share price and return will vary and you may have a gain or loss when you sell your shares. All results include reinvestment of dividends and capital gains. Current returns may be higher or lower than those shown. Performance history includes periods from a predecessor fund. For performance current to the most recent month-end, visit ga.natixis.com. Class Y shares are not available for purchase by all investors. The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.


Credit Quality	% of Net Assets as of 3/31/11*
Aaa		15.1
Aa		6.3
A		12.9
Baa		23.4
Ba		13.6
B		14.8
Caa and Lower		3.4
Not Rated		7.7
Short-term and Other		2.8


Effective Maturity	% of Net Assets as of 3/31/11
1 year or less		9.5
1-5 years		31.6
5-10 years		24.7
10+ years		34.2
Average Effective Maturity		11.2	years

Portfolio characteristics will vary.

Expense Ratios

as stated in the most recent prospectus


Share Class	Gross Expense Ratio⁶			Net Expense Ratio⁷
A		0.97	%		0.97	%
B		1.72			1.72
C		1.72			1.72
Y		0.72			0.72
Admin		1.24			1.24

NOTES TO CHARTS

See page 11 for a description of the indices.

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	At Net Asset Value (NAV) - does not reflect payment of sales charge at time of purchase.

3	With Maximum Sales Charge (MSC) - reflects maximum sales charge of 4.50% at time of purchase.

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

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

6	Before fee waivers and/or expense reimbursements.

7	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire on 1/31/12. Contracts are reevaluated on an annual basis.

| 10

ADDITIONAL INFORMATION

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

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

INDEX/AVERAGE DESCRIPTIONS

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

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

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

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

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

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

PROXY VOTING INFORMATION

A description of the funds’ proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the funds’ website at ga.natixis.com; and on the Securities and Exchange Commission’s (SEC’s) website at www.sec.gov. Information regarding how the funds voted proxies relating to portfolio securities during the 12-month period ended June 30, 2010 is available from the funds’ website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

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

11 |

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. These costs are described in more detail in the funds’ prospectuses. The examples below are intended to help you understand the ongoing costs of investing in the funds and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table of each class of fund shares shows the actual account values and actual fund expenses you would have paid on a $1,000 investment in the fund from October 1, 2010 through March 31, 2011. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example $8,600 account value divided by $1,000 = 8.60) and multiply the result by the number in the Expenses Paid During Period column as shown below for your class.

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

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


LOOMIS SAYLES CORE PLUS BOND FUND	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual		$1,000.00		$1,011.10		$4.36
Hypothetical (5% return before expenses)		$1,000.00		$1,020.59		$4.38
Class B
Actual		$1,000.00		$1,007.20		$8.11
Hypothetical (5% return before expenses)		$1,000.00		$1,016.85		$8.15
Class C
Actual		$1,000.00		$1,006.50		$8.10
Hypothetical (5% return before expenses)		$1,000.00		$1,016.85		$8.15
Class Y
Actual		$1,000.00		$1,012.30		$3.11
Hypothetical (5% return before expenses)		$1,000.00		$1,021.84		$3.13

Expenses are equal to the Fund’s annualized expense ratio: 0.87%, 1.62%, 1.62% and 0.62% for Class A, B, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

| 12

UNDERSTANDING FUND EXPENSES


LOOMIS SAYLES HIGH INCOME FUND	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual		$1,000.00		$1,082.30		$5.97
Hypothetical (5% return before expenses)		$1,000.00		$1,019.20		$5.79
Class B
Actual		$1,000.00		$1,078.00		$9.84
Hypothetical (5% return before expenses)		$1,000.00		$1,015.46		$9.55
Class C
Actual		$1,000.00		$1,076.10		$9.83
Hypothetical (5% return before expenses)		$1,000.00		$1,015.46		$9.55
Class Y
Actual		$1,000.00		$1,083.80		$4.68
Hypothetical (5% return before expenses)		$1,000.00		$1,020.44		$4.53

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


LOOMIS SAYLES INTERNATIONAL BOND FUND	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual		$1,000.00		$1,019.80		$5.54
Hypothetical (5% return before expenses)		$1,000.00		$1,019.45		$5.54
Class C
Actual		$1,000.00		$1,016.10		$9.30
Hypothetical (5% return before expenses)		$1,000.00		$1,015.71		$9.30
Class Y
Actual		$1,000.00		$1,022.00		$4.28
Hypothetical (5% return before expenses)		$1,000.00		$1,020.69		$4.28

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, divided by 365 (to reflect the half-year period).

13 |

UNDERSTANDING FUND EXPENSES


LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual		$1,000.00		$1,005.10		$4.25
Hypothetical (5% return before expenses)		$1,000.00		$1,020.69		$4.28
Class B
Actual		$1,000.00		$1,002.20		$7.99
Hypothetical (5% return before expenses)		$1,000.00		$1,016.95		$8.05
Class C
Actual		$1,000.00		$1,001.40		$7.98
Hypothetical (5% return before expenses)		$1,000.00		$1,016.95		$8.05
Class Y
Actual		$1,000.00		$1,007.20		$3.00
Hypothetical (5% return before expenses)		$1,000.00		$1,021.94		$3.02

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.85%, 1.60%, 1.60% and 0.60% for Class A, B, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).


LOOMIS SAYLES STRATEGIC INCOME FUND	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual		$1,000.00		$1,059.50		$4.88
Hypothetical (5% return before expenses)		$1,000.00		$1,020.19		$4.78
Class B
Actual		$1,000.00		$1,055.10		$8.71
Hypothetical (5% return before expenses)		$1,000.00		$1,016.45		$8.55
Class C
Actual		$1,000.00		$1,055.20		$8.71
Hypothetical (5% return before expenses)		$1,000.00		$1,016.45		$8.55
Class Y
Actual		$1,000.00		$1,060.80		$3.60
Hypothetical (5% return before expenses)		$1,000.00		$1,021.44		$3.53
Admin Class
Actual		$1,000.00		$1,058.50		$6.21
Hypothetical (5% return before expenses)		$1,000.00		$1,018.90		$6.09

Expenses are equal to the Fund’s annualized expense ratio: 0.95%, 1.70%, 1.70%, 0.70% and 1.21% for Class A, B, C, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

| 14

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Core Plus Bond Fund


Principal Amount		Description	Value (†)

	Bonds and Notes — 97.0% of Net Assets
		ABS Car Loan — 2.6%
$	1,140,000	AESOP Funding II LLC, Series 2010-2A, Class A, 3.630%, 8/20/2014, 144A	$	1,172,091
	2,815,000	Ally Master Owner Trust, Series 2011-1, Class A2, 2.150%, 1/15/2016		2,815,248
	474,747	Centre Point Funding LLC, Series 2010-1A, Class 1, 5.430%, 7/20/2016, 144A		501,807
	2,902,112	Chrysler Financial Lease Trust, Series 2010-A, Class B, 3.460%, 9/16/2013, 144A		2,904,975
	1,775,000	DSC Floorplan Master Owner Trust, Series 2011-1, Class A, 3.910%, 3/15/2016, 144A		1,775,000
	790,000	Hertz Vehicle Financing LLC, Series 2009-2A, Class A1, 4.260%, 3/25/2014, 144A		827,694

				9,996,815

		ABS Credit Card — 0.9%
	1,700,000	GE Capital Credit Card Master Note Trust, Series 2010-3, Class A, 2.210%, 6/15/2016		1,727,126
	1,580,000	World Financial Network Credit Card Master Trust, Series 2009-D, Class A, 4.660%, 5/15/2017		1,679,829

				3,406,955

		ABS Home Equity — 0.2%
	678,676	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035		638,528

		Aerospace & Defense — 0.7%
	1,140,000	Bombardier, Inc., 7.500%, 3/15/2018, 144A		1,231,200
	1,415,000	Oshkosh Corp., 8.250%, 3/01/2017		1,556,500

				2,787,700

		Airlines — 0.2%
	890,000	Continental Airlines Pass Through Trust, Series 2010-1, Class A, 4.750%, 1/12/2021		872,200

		Automotive — 1.5%
	510,000	Ford Motor Credit Co. LLC, 5.625%, 9/15/2015		534,061
	285,000	Ford Motor Credit Co. LLC, 6.625%, 8/15/2017		304,166
	880,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		949,932
	1,830,000	Ford Motor Credit Co. LLC, 7.000%, 4/15/2015		1,980,840
	660,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		749,220
	1,155,000	Lear Corp., 7.875%, 3/15/2018		1,256,062

				5,774,281

		Banking — 7.7%
	760,000	Bank of America Corp., 5.625%, 7/01/2020		780,274
	1,365,000	Bear Stearns Cos., Inc. (The), 6.400%, 10/02/2017		1,533,416
	605,000	Citigroup, Inc., 6.125%, 5/15/2018		659,880


Principal Amount		Description	Value (†)

		Banking — continued
$	2,135,000	Citigroup, Inc., 6.500%, 8/19/2013	$	2,334,313
	795,000	Citigroup, Inc., 8.125%, 7/15/2039		996,544
	625,000	Goldman Sachs Group, Inc. (The), 5.300%, 2/14/2012		649,356
	1,815,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		1,830,662
	1,090,000	JPMorgan Chase & Co., 6.000%, 1/15/2018		1,195,168
	3,860,000	Lloyds TSB Bank PLC, 6.375%, 1/21/2021		4,022,490
	2,530,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		2,810,051
	960,000	Morgan Stanley, 4.750%, 4/01/2014		1,000,335
	615,000	Morgan Stanley, 5.375%, 10/15/2015		653,325
	2,470,000	Morgan Stanley, 5.750%, 1/25/2021		2,492,961
	100,000	Morgan Stanley, 6.750%, 4/15/2011		100,166
	1,900,000	Royal Bank of Scotland PLC (The), 4.875%, 3/16/2015		1,974,811
	3,955,000	Societe Generale, 2.500%, 1/15/2014, 144A		3,924,357
	2,265,000	SunTrust Banks, Inc., 3.600%, 4/15/2016		2,251,491

				29,209,600

		Building Materials — 1.0%
	975,000	Holcim Capital Corp. Ltd., 6.875%, 9/29/2039, 144A		988,082
	1,915,000	Owens Corning, Inc., 7.000%, 12/01/2036		1,921,574
	795,000	USG Corp., 6.300%, 11/15/2016		747,300

				3,656,956

		Chemicals — 0.8%
	1,305,000	Chevron Phillips Chemical Co. LLC, 8.250%, 6/15/2019, 144A		1,558,054
	1,330,000	RPM International, Inc., 6.125%, 10/15/2019		1,395,178

				2,953,232

		Collateralized Mortgage Obligations — 0.6%
	1,710,869	Banc of America Funding Corp., Series 2005-B, Class 3A1, 0.484%, 4/20/2035(b)		1,324,803
	853,869	Chase Mortgage Finance Corp., Series 2007-A1, Class 2A3, 2.887%, 2/25/2037(b)		815,421

				2,140,224

		Commercial Mortgage-Backed Securities — 9.6%
	74,901	Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A2, 5.165%, 9/10/2047		74,863
	923,370	Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A2, 5.634%, 4/10/2049		937,125
	2,680,000	Banc of America Commercial Mortgage, Inc., Series 2007-5, Class A4, 5.492%, 2/10/2051		2,814,135

See accompanying notes to financial statements.

15 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount		Description	Value (†)

		Commercial Mortgage-Backed Securities — continued
$	446,106	Bear Stearns Commercial Mortgage Securities, Series 2005-PW10, Class A2, 5.270%, 12/11/2040	$	445,556
	2,970,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		3,111,336
	1,106,835	Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A2, 5.854%, 6/11/2040(b)		1,132,450
	690,000	Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.886%, 12/10/2049(b)		746,566
	1,000,000	Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.294%, 12/10/2049(b)		1,097,263
	267,581	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD2, Class A2, 5.408%, 1/15/2046		267,446
	1,840,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4, 5.905%, 6/15/2039(b)		1,948,465
	2,310,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		2,400,446
	1,345,767	Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A2, 5.117%, 4/10/2037		1,359,367
	425,000	Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4, 6.078%, 7/10/2038(b)		464,948
	2,839,000	GS Mortgage Securities Corp. II, Series 2006-GG6, Class A4, 5.553%, 4/10/2038		3,044,658
	1,140,000	GS Mortgage Securities Corp. II, Series 2006-GG8, Class A4, 5.560%, 11/10/2039		1,226,118
	1,570,000	GS Mortgage Securities Trust, Series 2007-GG10, Class A4, 6.002%, 8/10/2045(b)		1,666,925
	1,375,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A4, 6.061%, 4/15/2045(b)		1,510,888
	2,650,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-CB18, Class A4, 5.440%, 6/12/2047		2,794,383
	1,710,000	LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A3, 4.647%, 7/15/2030		1,734,170
	540,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051		565,570
	1,080,000	Morgan Stanley Capital I, Series 2007-IQ14, Class A4, 5.692%, 4/15/2049		1,137,875
	305,000	Morgan Stanley Capital I, Series 2007-T27, Class A4, 5.795%, 6/11/2042(b)		334,955
	1,175,000	Morgan Stanley Capital I, Series 2008-T29, Class A4, 6.458%, 1/11/2043(b)		1,316,240
	2,070,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.308%, 11/15/2048		2,217,545


Principal Amount		Description	Value (†)

		Commercial Mortgage-Backed Securities — continued
$	1,890,000	Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A5, 5.342%, 12/15/2043	$	1,957,125

				36,306,418

		Consumer Cyclical Services — 0.8%
	1,800,000	Expedia, Inc., 5.950%, 8/15/2020		1,815,750
	1,150,000	Service Corp. International, 7.000%, 5/15/2019		1,207,500

				3,023,250

		Diversified Manufacturing — 0.9%
	1,200,000	Crane Co., 6.550%, 11/15/2036(c)		1,204,344
	580,000	Fibria Overseas Finance Ltd., 6.750%, 3/03/2021, 144A		598,850
	675,000	Snap-On, Inc., 4.250%, 1/15/2018		690,482
	1,110,000	Votorantim Cimentos SA, 7.250%, 4/05/2041, 144A		1,103,284

				3,596,960

		Electric — 0.9%
	915,000	Dubai Electricity & Water Authority, 8.500%, 4/22/2015, 144A		992,775
	1,120,000	TransAlta Corp., 4.750%, 1/15/2015		1,190,245
	1,100,000	TransAlta Corp., 6.500%, 3/15/2040		1,124,919

				3,307,939

		Food & Beverage — 1.2%
	760,000	Anheuser-Busch Cos., Inc., 4.500%, 4/01/2018		787,572
	1,130,000	Bunge Ltd. Finance Corp., 4.100%, 3/15/2016		1,132,813
	1,660,000	Corn Products International, Inc., 4.625%, 11/01/2020		1,631,577
	753,000	Smithfield Foods, Inc., 10.000%, 7/15/2014		886,658

				4,438,620

		Government Owned - No Guarantee — 1.8%
	1,960,000	Korea Development Bank, 4.000%, 9/09/2016		1,980,841
	665,000	Petrobras International Finance Co., 6.750%, 1/27/2041		685,088
	2,535,000	Petrobras International Finance Co., 6.875%, 1/20/2040		2,654,659
	1,375,000	Qtel International Finance Ltd., 7.875%, 6/10/2019, 144A		1,608,750

				6,929,338

		Healthcare — 0.8%
	575,000	HCA, Inc., 7.500%, 12/15/2023		543,375
	935,000	HCA, Inc., 9.125%, 11/15/2014		980,581
	670,000	Medco Health Solutions, 7.250%, 8/15/2013		750,364
	590,000	Omnicare, Inc., 7.750%, 6/01/2020		625,400

				2,899,720

See accompanying notes to financial statements.

| 16

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount		Description	Value (†)

		Hybrid ARMs — 0.2%
$	551,054	FHLMC, 6.004%, 11/01/2036(b)	$	589,190
	281,790	FNMA, 5.983%, 2/01/2037(b)		299,694

				888,884

		Independent Energy — 1.4%
	2,520,000	Anadarko Petroleum Corp., 6.375%, 9/15/2017		2,773,751
	1,165,000	Denbury Resources, Inc., 6.375%, 8/15/2021		1,194,125
	415,000	SM Energy Co., 6.625%, 2/15/2019, 144A		425,894
	280,000	Williams Cos., Inc. (The), 7.750%, 6/15/2031		332,535
	485,000	Williams Cos., Inc. (The), Series A, 7.500%, 1/15/2031		567,400

				5,293,705

		Industrial Other — 1.2%
	1,360,000	Briggs & Stratton Corp., 6.875%, 12/15/2020		1,424,600
	1,580,000	Hutchison Whampoa International Ltd., 5.750%, 9/11/2019, 144A		1,699,595
	1,205,000	Timken Co. (The), 6.000%, 9/15/2014		1,329,169

				4,453,364

		Media Cable — 0.9%
	900,000	Cablevision Systems Corp., 7.750%, 4/15/2018		972,000
	610,000	Cablevision Systems Corp., 8.000%, 4/15/2020		664,900
	410,000	Cox Communications, Inc., 5.450%, 12/15/2014		452,510
	1,050,000	Time Warner Cable, Inc., 8.250%, 4/01/2019		1,279,140

				3,368,550

		Media Non-Cable — 0.5%
	1,375,000	Inmarsat Finance PLC, 7.375%, 12/01/2017, 144A		1,450,625
	600,000	Myriad International Holding BV, 6.375%, 7/28/2017, 144A		633,720

				2,084,345

		Metals & Mining — 1.8%
	955,000	Alcoa, Inc., 6.150%, 8/15/2020		1,009,170
	460,000	Allegheny Technologies, Inc., 5.950%, 1/15/2021		484,329
	525,000	APERAM, 7.375%, 4/01/2016, 144A		534,188
	2,845,000	ArcelorMittal, 6.750%, 3/01/2041		2,788,217
	765,000	ArcelorMittal, 9.850%, 6/01/2019		970,595
	400,000	United States Steel Corp., 6.650%, 6/01/2037		368,000
	640,000	United States Steel Corp., 7.375%, 4/01/2020		670,400

				6,824,899

		Mortgage Related — 18.8%
	469,702	FHLMC, 4.000%, 7/01/2019		491,352


Principal Amount		Description	Value (†)

		Mortgage Related — continued
$	1,131,549	FHLMC, 4.500%, 12/01/2034	$	1,159,692
	8,550,140	FHLMC, 5.000%, with various maturities from 2018 to 2040(d)		8,940,904
	14,142,970	FHLMC, 5.500%, with various maturities from 2018 to 2040(d)		15,127,666
	93,889	FHLMC, 6.000%, 6/01/2035		103,291
	3,450,000	FHLMC (TBA), 5.000%, 4/01/2041(e)		3,600,399
	378,289	FNMA, 4.000%, 6/01/2019		395,785
	5,990,216	FNMA, 4.500%, with various maturities from 2039 to 2040(d)		6,106,859
	19,090,069	FNMA, 5.500%, with various maturities from 2018 to 2039(d)		20,469,064
	3,864,083	FNMA, 6.000%, with various maturities from 2016 to 2039(d)		4,229,126
	220,602	FNMA, 6.500%, with various maturities from 2029 to 2036(d)		249,102
	127,157	FNMA, 7.000%, with various maturities in 2030(d)		147,070
	138,524	FNMA, 7.500%, with various maturities from 2024 to 2032(d)		160,780
	3,246,286	GNMA, 5.000%, with various maturities from 2035 to 2038(d)		3,454,758
	4,949,495	GNMA, 5.500%, with various maturities from 2034 to 2039(d)		5,370,733
	492,227	GNMA, 6.000%, with various maturities from 2029 to 2037(d)		543,150
	298,795	GNMA, 6.500%, with various maturities from 2028 to 2032(d)		338,386
	194,910	GNMA, 7.000%, with various maturities from 2025 to 2029(d)		224,767
	70,956	GNMA, 7.500%, with various maturities from 2025 to 2030(d)		82,375
	42,513	GNMA, 8.000%, 11/15/2029		50,054
	80,751	GNMA, 8.500%, with various maturities from 2017 to 2023(d)		93,612
	13,514	GNMA, 9.000%, with various maturities in 2016(d)		15,076
	25,139	GNMA, 11.500%, with various maturities from 2013 to 2015(d)		25,357

				71,379,358

		Non-Captive Consumer — 1.7%
	735,000	HSBC Finance Corp., 7.000%, 5/15/2012		781,730

See accompanying notes to financial statements.

17 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount		Description	Value (†)

		Non-Captive Consumer — continued
$	325,000	SLM Corp., MTN, 5.050%, 11/14/2014	$	328,064
	2,835,000	SLM Corp., MTN, 6.250%, 1/25/2016		2,955,487
	350,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		362,282
	30,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		30,205
	120,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		112,767
	55,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		57,208
	35,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		36,295
	420,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		359,078
	1,135,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		1,271,200

				6,294,316

		Non-Captive Diversified — 3.1%
	1,211,000	Ally Financial, Inc., 8.000%, 11/01/2031		1,319,990
	1,555,000	Ally Financial, Inc., 8.300%, 2/12/2015		1,704,669
	1,680,000	GATX Corp., 4.750%, 5/15/2015		1,753,811
	4,000,000	General Electric Capital Corp., 2.250%, 11/09/2015		3,842,668
	1,595,000	General Electric Capital Corp., 5.300%, 2/11/2021		1,619,992
	205,000	International Lease Finance Corp., 6.375%, 3/25/2013		212,175
	120,000	International Lease Finance Corp., Series R, MTN, 5.300%, 5/01/2012		122,100
	40,000	International Lease Finance Corp., Series R, MTN, 5.550%, 9/05/2012		40,800
	200,000	International Lease Finance Corp., Series R, MTN, 5.625%, 9/20/2013		203,250
	830,000	International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		834,150

				11,653,605

		Oil Field Services — 2.6%
	2,270,000	Pan American Energy LLC, 7.875%, 5/07/2021, 144A		2,443,201
	1,875,000	Parker Drilling Co., 9.125%, 4/01/2018		2,015,625
	1,420,000	Rowan Cos., Inc., 5.000%, 9/01/2017		1,469,243
	3,845,000	Transocean, Inc., 4.950%, 11/15/2015		4,063,423

				9,991,492

		Paper — 1.2%
	1,215,000	Celulosa Arauco y Constitucion SA, 5.000%, 1/21/2021, 144A		1,198,821
	565,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		596,075
	1,470,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		1,615,162
	735,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		839,738
	365,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		440,738

				4,690,534


Principal Amount		Description	Value (†)

		Pharmaceuticals — 0.9%
$	600,000	Valeant Pharmaceuticals International, 6.750%, 10/01/2017, 144A	$	591,000
	2,810,000	Valeant Pharmaceuticals International, 6.875%, 12/01/2018, 144A		2,753,800

				3,344,800

		Pipelines — 1.8%
	285,000	Energy Transfer Partners LP, 6.625%, 10/15/2036		297,792
	500,000	Energy Transfer Partners LP, 7.500%, 7/01/2038		578,309
	2,775,000	Kinder Morgan Finance Co. LLC, 6.000%, 1/15/2018, 144A		2,865,187
	570,000	Nisource Finance Corp., 6.250%, 12/15/2040		581,942
	1,255,000	ONEOK Partners LP, 8.625%, 3/01/2019		1,578,562
	725,000	Southern Natural Gas Co., 7.350%, 2/15/2031		822,280

				6,724,072

		Property & Casualty Insurance — 0.7%
	1,175,000	Willis Group Holdings PLC, 4.125%, 3/15/2016		1,168,952
	1,005,000	Willis North America, Inc., 6.200%, 3/28/2017		1,071,071
	555,000	Willis North America, Inc., 7.000%, 9/29/2019		601,048

				2,841,071

		Refining — 0.6%
	1,895,000	Coffeyville Resources LLC/Coffeyville Finance, Inc., 10.875%, 4/01/2017, 144A		2,155,562

		Technology — 3.8%
	1,895,000	Amphenol Corp., 4.750%, 11/15/2014		2,033,250
	1,405,000	Brocade Communications Systems, Inc., 6.625%, 1/15/2018		1,487,544
	495,000	Brocade Communications Systems, Inc., 6.875%, 1/15/2020		534,600
	1,420,000	Corning, Inc., 7.250%, 8/15/2036		1,621,175
	1,425,000	Equifax, Inc., 7.000%, 7/01/2037		1,519,100
	2,615,000	Fiserv, Inc., 3.125%, 10/01/2015		2,602,524
	1,180,000	Fiserv, Inc., 6.125%, 11/20/2012		1,266,926
	85,000	Motorola Solutions, Inc., 6.500%, 9/01/2025		89,441
	535,000	Motorola Solutions, Inc., 6.500%, 11/15/2028		549,807
	410,000	Motorola Solutions, Inc., 6.625%, 11/15/2037		439,931
	340,000	Motorola Solutions, Inc., 7.500%, 5/15/2025		385,131
	1,775,000	National Semiconductor Corp., 3.950%, 4/15/2015		1,808,093
	279,000	Xerox Corp., 5.500%, 5/15/2012		291,865

				14,629,387

		Textile — 1.0%
	2,045,000	Hanesbrands, Inc., 6.375%, 12/15/2020		1,993,875

See accompanying notes to financial statements.

| 18

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount		Description	Value (†)

		Textile — continued
$	1,515,000	Hanesbrands, Inc., 8.000%, 12/15/2016	$	1,641,881

				3,635,756

		Tobacco — 0.8%
	2,835,000	Reynolds American, Inc., 7.250%, 6/15/2037		3,000,459

		Transportation Services — 0.7%
	2,470,000	Erac USA Finance Co., 5.250%, 10/01/2020, 144A		2,543,280

		Treasuries — 11.9%
	3,875,000	U.S. Treasury Bond, 3.875%, 8/15/2040		3,467,520
	10,115,000	U.S. Treasury Bond, 4.375%, 5/15/2040		9,889,031
	325,000	U.S. Treasury Note, 2.625%, 8/15/2020		304,891
	8,550,000	U.S. Treasury Note, 2.625%, 11/15/2020		7,978,219
	15,420,000	U.S. Treasury Note, 3.625%, 8/15/2019		15,940,425
	7,555,000	U.S. Treasury Note, 3.625%, 2/15/2021(f)		7,662,424

				45,242,510

		Wireless — 4.0%
	1,070,000	American Tower Corp., 4.625%, 4/01/2015		1,110,813
	2,615,000	CC Holdings GS V LLC/Crown Castle GS III Corp., 7.750%, 5/01/2017, 144A		2,850,350
	1,980,000	eAccess Ltd., 8.250%, 4/01/2018, 144A		2,012,274
	15,000	Nextel Communications, Inc., Series C, 5.950%, 3/15/2014		15,038
	10,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		10,038
	585,000	NII Capital Corp., 7.625%, 4/01/2021		598,162
	1,495,000	SK Telecom Co. Ltd., 6.625%, 7/20/2027, 144A		1,657,536
	3,945,000	Sprint Capital Corp., 6.875%, 11/15/2028		3,639,262
	1,624,000	Telemar Norte Leste SA, 5.500%, 10/23/2020, 144A		1,595,580
	100,000	True Move Co. Ltd., 10.375%, 8/01/2014, 144A		108,000
	1,520,000	True Move Co. Ltd., 10.750%, 12/16/2013, 144A		1,645,400

				15,242,453

		Wirelines — 5.2%
	2,795,000	Axtel SAB de CV, 9.000%, 9/22/2019, 144A		2,683,200
	4,653,000	Embarq Corp., 7.995%, 6/01/2036		5,245,797
	1,325,000	Frontier Communications Corp., 7.875%, 4/15/2015		1,427,687
	1,575,000	Frontier Communications Corp., 7.875%, 1/15/2027		1,504,125
	450,000	Frontier Communications Corp., 8.250%, 4/15/2017		486,000


Principal Amount		Description	Value (†)

		Wirelines — continued
$	415,000	Frontier Communications Corp., 9.000%, 8/15/2031	$	424,338
	775,000	Qwest Corp., 8.875%, 3/15/2012		829,250
	590,000	Telecom Italia Capital SA, 6.000%, 9/30/2034		533,865
	2,435,000	Telecom Italia Capital SA, 7.200%, 7/18/2036		2,443,661
	3,790,000	Windstream Corp., 7.500%, 4/01/2023, 144A		3,733,150
	515,000	Windstream Corp., 8.125%, 9/01/2018		549,763

				19,860,836

		Total Bonds and Notes (Identified Cost $353,478,493)		368,081,974

	Bank Loans — 0.7%
		Non-Captive Consumer — 0.7%
	2,700,000	Springleaf Finance Corp., Term Loan B, 7.250%, 4/21/2015(g) (Identified Cost $2,667,021)		2,701,701


Shares
	Preferred Stocks — 0.6%
		Banking — 0.6%
	68,182	Ally Financial, Inc., Series A, (fixed rate to 5/15/2016, variable rate thereafter), 8.500%		1,697,664
	532	Ally Financial, Inc., Series G, 7.000%, 144A		495,026

		Total Preferred Stocks (Identified Cost $1,830,494)		2,192,690


Principal Amount
	Short-Term Investments — 3.6%
$	13,602,620	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011 at 0.000% to be repurchased at $13,602,620 on 4/01/2011 collateralized by $14,590,000 Federal Home Loan Mortgage Corp., 3.310% due 11/10/2020 valued at $13,878,738 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $13,602,620)		13,602,620


		Total Investments — 101.9%
		(Identified Cost $371,578,628)(a)		386,578,985
		Other assets less liabilities — (1.9)%		(7,371,165	)

		Net Assets — 100.0%	$	379,207,820

	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):

See accompanying notes to financial statements.

19 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Core Plus Bond Fund – (continued)


	At March 31, 2011, the net unrealized appreciation on investments based on a cost of $371,919,597 for federal income tax purposes was as follows:
	Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	17,545,931
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(2,886,543	)

	Net unrealized appreciation	$	14,659,388



(b)	Variable rate security. Rate as of March 31, 2011 is disclosed.
(c)	Illiquid security. At March 31, 2011, the value of this security amounted to $1,204,344 or 0.3% of net assets.
(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)	Delayed delivery. See Note 2 of Notes to Financial Statements.
(f)	All or a portion of this security has been designated to cover the Fund’s obligations under open forward foreign currency contracts or TBA transactions.
(g)	Variable rate security. Rate shown represents the weighted average rate at March 31, 2011.

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 March 31, 2011, the value of Rule 144A holdings amounted to $55,262,308 or 14.6% 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
MTN	Medium Term Note
TBA	To Be Announced

At March 31, 2011, the Fund had the following open forward foreign currency contracts:


Contract to Buy/Sell	Delivery Date		Currency	Units		Notional Value		Unrealized Depreciation
Sell¹		06/15/2011	Euro		8,050,000	$	11,392,551	$	(23,536	)

¹Counterparty is Credit Suisse.

Industry Summary at March 31, 2011 (Unaudited)


Mortgage Related	18.8	%
Treasuries	11.9
Commercial Mortgage-Backed Securities	9.6
Banking	8.3
Wirelines	5.2
Wireless	4.0
Technology	3.8
Non-Captive Diversified	3.1
ABS Car Loan	2.6
Oil Field Services	2.6
Non-Captive Consumer	2.4
Other Investments, less than 2% each	26.0
Short-Term Investments	3.6

Total Investments	101.9
Other assets less liabilities (including open forward foreign currency contracts)	(1.9	)

Net Assets	100.0	%

See accompanying notes to financial statements.

| 20

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles High Income Fund


Principal Amount (‡)		Description	Value (†)

	Bonds and Notes — 80.0% of Net Assets
	Non-Convertible Bonds — 60.9%
		ABS Car Loan — 0.2%
$	350,000	DSC Floorplan Master Owner Trust, Series 2011-1, Class B, 8.110%, 3/15/2016, 144A	$	350,000

		ABS Home Equity — 1.2%
	200,000	Ameriquest Mortgage Securities, Inc., Series 2005-R11, Class M1, 0.700%, 1/25/2036(b)		135,714
	600,000	Ameriquest Mortgage Securities, Inc., Series 2005-R7, Class M2, 0.750%, 9/25/2035(b)		382,685
	523,564	Argent Securities, Inc., Series 2003-W3, Class M2, 2.950%, 9/25/2033(b)		350,246
	200,000	New Century Home Equity Loan Trust, Series 2005-1, Class M3, 0.770%, 3/25/2035(b)		127,753
	300,000	New Century Home Equity Loan Trust, Series 2005-2, Class M2, 0.700%, 6/25/2035(b)		230,889
	275,000	Park Place Securities, Inc., Series 2004-WCW2, Class M2, 0.900%, 10/25/2034(b)		214,383
	575,000	Park Place Securities, Inc., Series 2005-WCW2, Class M1, 0.750%, 7/25/2035(b)		423,178
	241,687	Saxon Asset Securities Trust, Series 2004-3, Class M2, 0.900%, 12/26/2034(b)		202,358

				2,067,206

		Airlines — 1.1%
	28,291	Continental Airlines Pass Through Trust, Series 1997-4, Class B, 6.900%, 7/02/2018		28,220
	291,619	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022		315,678
	484,465	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		485,677
	176,811	Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.903%, 4/19/2022		178,137
	703,508	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		805,517

				1,813,229

		Automotive — 1.3%
	420,000	Ford Motor Co., 6.375%, 2/01/2029		396,792
	65,000	Ford Motor Co., 6.625%, 2/15/2028		63,114
	1,220,000	Ford Motor Co., 6.625%, 10/01/2028		1,184,043
	40,000	Ford Motor Co., 7.500%, 8/01/2026		40,160
	635,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		596,900

				2,281,009


Principal Amount (‡)		Description	Value (†)

		Banking — 2.6%
	2,210,000,000	Barclays Bank PLC, EMTN, 3.680%, 8/20/2015, (KRW)	$	1,967,014
	12,176,250,000	JPMorgan Chase Bank NA, EMTN, Zero Coupon, 10/17/2011, 144A, (IDR)		1,356,692
	900,000	Morgan Stanley, GMTN, 7.625%, 3/03/2016, (AUD)		937,786
	80,000	National Australia Bank Ltd., 6.500%, 11/05/2015, (AUD)		82,265

				4,343,757

		Building Materials — 1.7%
	50,000	Masco Corp., 6.500%, 8/15/2032		45,114
	345,000	Masco Corp., 7.750%, 8/01/2029		350,928
	2,440,000	USG Corp., 6.300%, 11/15/2016		2,293,600
	100,000	USG Corp., 8.375%, 10/15/2018, 144A		104,500
	65,000	USG Corp., 9.750%, 8/01/2014, 144A		71,175
	75,000	USG Corp., 9.750%, 1/15/2018		78,563

				2,943,880

		Chemicals — 1.1%
	855,000	Hercules, Inc., 6.500%, 6/30/2029		719,269
	400,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 8.875%, 2/01/2018		423,000
	730,000	Reichhold Industries, Inc., 9.000%, 8/15/2014, 144A(c)		643,312

				1,785,581

		Collateralized Mortgage Obligations — 2.2%
	382,599	Adjustable Rate Mortgage Trust, Series 2005-10, Class 5A1, 0.510%, 1/25/2036(b)		219,203
	93,569	American Home Mortgage Investment Trust, Series 2004-3, Class 3A, 2.292%, 10/25/2034(b)		76,582
	234,677	Countrywide Alternative Loan Trust, Series 2005-38, Class A3, 0.600%, 9/25/2035(b)		149,112
	347,489	GSR Mortgage Loan Trust, Series 2005-AR7, Class 2A1, 2.788%, 11/25/2035(b)		311,507
	490,385	Impac CMB Trust, Series 2005-3, Class A1, 0.730%, 8/25/2035(b)		360,259
	631,047	Lehman Mortgage Trust, Series 2005-3, Class 1A6, 0.750%, 1/25/2036(b)		438,003
	684,339	Lehman XS Trust, Series 2007-10H, Class 1A11, 0.370%, 7/25/2037(b)(d)		303,518
	530,377	Luminent Mortgage Pass Through Trust, Series 2006-6, Class A1, 0.450%, 10/25/2046(b)		363,267
	421,060	Master Adjustable Rate Mortgages Trust, Series 2005-2, Class 3A1, 2.649%, 3/25/2035(b)		295,589
	300,837	Master Adjustable Rate Mortgages Trust, Series 2005-2, Class 5A1, 2.637%, 3/25/2035(b)		269,203

See accompanying notes to financial statements.

21 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Collateralized Mortgage Obligations — continued
$	746,150	Master Adjustable Rate Mortgages Trust, Series 2007-1, Class I2A1, 0.410%, 1/25/2047(b)	$	439,654
	182,787	Sequoia Mortgage Trust, Series 2007-2, Class 1A1, 0.464%, 6/20/2036(b)		137,983
	758,982	Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2007-OC1, Class A1, 0.490%, 1/25/2047(b)		336,519

				3,700,399

		Consumer Cyclical Services — 0.8%
	1,035,000	ServiceMaster Co. (The), 7.450%, 8/15/2027		835,762
	475,000	West Corp., 8.625%, 10/01/2018, 144A		499,938

				1,335,700

		Consumer Products — 0.3%
	145,000	NBTY, Inc., 9.000%, 10/01/2018, 144A		157,325
	275,000	Visant Corp., 10.000%, 10/01/2017		297,000

				454,325

		Electric — 1.8%
	20,962	AES Red Oak LLC, Series A, 8.540%, 11/30/2019		21,276
	375,000	Dynegy Holdings, Inc., 7.125%, 5/15/2018		275,625
	180,000	Dynegy Holdings, Inc., 7.625%, 10/15/2026		125,100
	815,000	Dynegy Holdings, Inc., 7.750%, 6/01/2019		632,644
	1,055,000	Edison Mission Energy, 7.625%, 5/15/2027		785,975
	720,000,000	Emgesa SA ESP, 8.750%, 1/25/2021, 144A, (COP)		405,454
	140,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027(c)		71,400
	195,000	TXU Corp., Series P, 5.550%, 11/15/2014		127,725
	1,015,000	TXU Corp., Series Q, 6.500%, 11/15/2024		474,513
	370,000	TXU Corp., Series R, 6.550%, 11/15/2034		170,200

				3,089,912

		Food & Beverage — 1.1%
	385,000	Blue Merger Sub, Inc., 7.625%, 2/15/2019, 144A		390,294
	105,000	Dean Foods Co., 6.900%, 10/15/2017		97,388
	750,000	Dean Foods Co., 7.000%, 6/01/2016		715,312
	700,000	Marfrig Overseas Ltd., 9.500%, 5/04/2020, 144A		729,750

				1,932,744

		Gaming — 2.8%
	2,005,000	Caesars Entertainment Operating Co., Inc., 10.000%, 12/15/2018		1,829,562
	470,000	MGM Resorts International, 5.875%, 2/27/2014		448,850


Principal Amount (‡)		Description	Value (†)

		Gaming — continued
$	155,000	MGM Resorts International, 6.625%, 7/15/2015	$	146,863
	90,000	MGM Resorts International, 6.875%, 4/01/2016		83,700
	1,870,000	MGM Resorts International, 7.500%, 6/01/2016		1,767,150
	555,000	MGM Resorts International, 7.625%, 1/15/2017		523,781

				4,799,906

		Government Owned - No Guarantee — 0.8%
	900,000	DP World Ltd., 6.850%, 7/02/2037, 144A		828,000
	4,800,000,000	Export-Import Bank of Korea, 6.600%, 11/04/2013, 144A, (IDR)		532,617

				1,360,617

		Healthcare — 3.4%
	35,000	HCA, Inc., 7.050%, 12/01/2027		31,150
	630,000	HCA, Inc., 7.500%, 12/15/2023		595,350
	1,620,000	HCA, Inc., 7.500%, 11/06/2033		1,486,350
	75,000	HCA, Inc., 7.690%, 6/15/2025		71,437
	480,000	HCA, Inc., 8.360%, 4/15/2024		480,000
	680,000	HCA, Inc., MTN, 7.580%, 9/15/2025		640,900
	1,700,000	HCA, Inc., MTN, 7.750%, 7/15/2036		1,589,500
	1,080,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		895,050

				5,789,737

		Home Construction — 3.2%
	1,790,000	KB Home, 7.250%, 6/15/2018		1,754,200
	515,000	Lennar Corp., 6.950%, 6/01/2018		509,850
	3,135,000	Pulte Group, Inc., 6.000%, 2/15/2035		2,453,137
	495,000	Pulte Group, Inc., 6.375%, 5/15/2033		402,188
	380,000	Pulte Group, Inc., 7.875%, 6/15/2032		350,550

				5,469,925

		Hybrid ARMs — 0.1%
	431,177	Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-11, Class 3A3, 3.262%, 4/25/2035(b)		220,251

		Independent Energy — 0.4%
	620,000	Connacher Oil and Gas Ltd., 10.250%, 12/15/2015, 144A		657,200

		Industrial Other — 0.2%
	215,000	Atkore International, Inc., 9.875%, 1/01/2018, 144A		229,513
	140,000	Ranhill Labuan Ltd., 12.500%, 10/26/2011, 144A		123,200

				352,713

See accompanying notes to financial statements.

| 22

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Life Insurance — 0.5%
$	860,000	American International Group, Inc., (fixed rate to 5/15/2038, variable rate thereafter), 8.175%, 5/15/2068	$	925,575

		Local Authorities — 0.1%
	85,000	New South Wales Treasury Corp., 5.500%, 8/01/2013, (AUD)		88,468

		Media Non-Cable — 0.2%
	320,000	Intelsat SA, 11.250%, 2/04/2017		349,600

		Metals & Mining — 0.3%
	360,000	Algoma Acquisition Corp., 9.875%, 6/15/2015, 144A		331,200
	35,000	Essar Steel Algoma, Inc., 9.375%, 3/15/2015, 144A		35,000
	190,000	United States Steel Corp., 6.650%, 6/01/2037		174,800

				541,000

		Non-Captive Consumer — 3.5%
	1,040,000	Residential Capital LLC, 9.625%, 5/15/2015		1,049,100
	10,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		9,397
	715,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		611,288
	245,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		274,400
	400,000	Springleaf Finance Corp., 3.250%, 1/16/2013, (EUR)		528,611
	220,000	Springleaf Finance Corp., MTN, 5.750%, 9/15/2016		198,000
	600,000	Springleaf Finance Corp., Series H, MTN, 5.375%, 10/01/2012		590,250
	800,000	Springleaf Finance Corp., Series I, MTN, 4.875%, 7/15/2012		786,000
	600,000	Springleaf Finance Corp., Series I, MTN, 5.850%, 6/01/2013		586,500
	100,000	Springleaf Finance Corp., Series J, MTN, 5.900%, 9/15/2012		99,000
	1,400,000	Springleaf Finance Corp., Series J, MTN, 6.900%, 12/15/2017		1,279,250

				6,011,796

		Non-Captive Diversified — 1.3%
	1,300,000	General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012, (SGD)		1,047,801
	660,000	General Motors Acceptance Corp. of Canada Ltd., EMTN, 7.125%, 9/13/2011, (AUD)(e)		676,756
	295,000	International Lease Finance Corp., 8.250%, 12/15/2020		323,394
	80,000	iStar Financial, Inc., 5.850%, 3/15/2017		69,800
	10,000	iStar Financial, Inc., 5.875%, 3/15/2016		8,900
	15,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		14,212

				2,140,863

		Oil Field Services — 0.9%
	490,000	Basic Energy Services, Inc., 7.125%, 4/15/2016		497,350


Principal Amount (‡)		Description	Value (†)

		Oil Field Services — continued
$	350,000	Cie Generale de Geophysique - Veritas, 9.500%, 5/15/2016	$	390,250
	265,000	Parker Drilling Co., 9.125%, 4/01/2018		284,875
	385,000	Pioneer Drilling Co., 9.875%, 3/15/2018		413,875

				1,586,350

		Packaging — 0.2%
	300,000	Reynolds Group Holdings Ltd., 8.250%, 2/15/2021, 144A		297,000

		Pharmaceuticals — 0.3%
	185,000	Valeant Pharmaceuticals International, 6.750%, 8/15/2021, 144A		175,519
	290,000	Valeant Pharmaceuticals International, 7.250%, 7/15/2022, 144A		280,575

				456,094

		Refining — 0.5%
	150,000	Petroplus Finance Ltd., 6.750%, 5/01/2014, 144A		147,000
	745,000	Petroplus Finance Ltd., 7.000%, 5/01/2017, 144A		707,750

				854,750

		Retailers — 1.3%
	250,000	Dillard’s, Inc., 6.625%, 1/15/2018		246,250
	105,000	Dillard’s, Inc., 7.130%, 8/01/2018		105,788
	285,000	Dillard’s, Inc., 7.750%, 7/15/2026		273,600
	105,000	Dillard’s, Inc., 7.750%, 5/15/2027		99,225
	145,000	Dillard’s, Inc., 7.875%, 1/01/2023		141,375
	1,285,000	Toys R Us, Inc., 7.375%, 10/15/2018		1,288,212

				2,154,450

		Sovereigns — 4.7%
	502,000(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		4,284,185
	4,750,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		2,894,834
	7,970,000	Republic of Iceland, 8.000%, 7/22/2011, (ISK)		41,790
	10,822,830	Uruguay Government International Bond, 3.700%, 6/26/2037, (UYU)		572,628
	4,962,953	Uruguay Government International Bond, 4.250%, 4/05/2027, (UYU)		276,903

				8,070,340

		Supermarkets — 1.4%
	315,000	American Stores Co., 8.000%, 6/01/2026		285,075
	750,000	New Albertson’s, Inc., 7.450%, 8/01/2029		592,500
	955,000	New Albertson’s, Inc., 7.750%, 6/15/2026		795,037
	130,000	New Albertson’s, Inc., 8.000%, 5/01/2031		106,600
	15,000	New Albertson’s, Inc., 8.700%, 5/01/2030		12,863

See accompanying notes to financial statements.

23 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Supermarkets — continued
$	735,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028	$	532,875

				2,324,950

		Supranational — 5.1%
	2,000,000	European Bank for Reconstruction & Development, GMTN, 9.250%, 9/10/2012, (BRL)		1,224,488
	17,499,000,000	European Investment Bank, EMTN, Zero Coupon, 4/24/2013, 144A, (IDR)		1,754,221
	35,340,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 8/20/2015, (IDR)		2,806,096
	72,300,000	Inter-American Development Bank, EMTN, 4.750%, 1/10/2014, (INR)		1,576,511
	1,500,000,000	International Bank for Reconstruction & Development, EMTN, 2.300%, 2/26/2013, (KRW)		1,363,462

				8,724,778

		Technology — 2.6%
	1,090,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		937,400
	1,930,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		1,659,800
	225,000	Buccaneer Merger Sub, Inc., 9.125%, 1/15/2019, 144A		238,500
	365,000	CommScope, Inc., 8.250%, 1/15/2019, 144A		381,425
	840,000	First Data Corp., 8.250%, 1/15/2021, 144A		837,900
	340,000	Nortel Networks Capital Corp., 7.875%, 6/15/2026(f)		249,900
	560,000	Nortel Networks Ltd., 6.875%, 9/01/2023(f)		145,600

				4,450,525

		Textile — 0.2%
	375,000	Jones Apparel Group, Inc., 6.125%, 11/15/2034		299,063

		Transportation Services — 0.4%
	275,000	APL Ltd., 8.000%, 1/15/2024(c)		188,375
	640,000	Overseas Shipholding Group, 7.500%, 2/15/2024		548,800

				737,175

		Treasuries — 2.4%
	59,169	Hellenic Republic Government Bond, 2.300%, 7/25/2030, (EUR)		42,001
	50,000	Hellenic Republic Government Bond, 4.600%, 7/20/2018, (EUR)		43,657
	175,000	Hellenic Republic Government Bond, 4.700%, 3/20/2024, (EUR)		147,095
	150,000	Ireland Government Bond, 4.500%, 10/18/2018, (EUR)		150,103
	275,000	Ireland Government Bond, 4.500%, 4/18/2020, (EUR)		264,042
	600,000	Ireland Government Bond, 5.400%, 3/13/2025, (EUR)		566,287
	10,000,000	Philippine Government International Bond, 4.950%, 1/15/2021, (PHP)		225,876
	120,000,000	Philippine Government International Bond, 6.250%, 1/14/2036, (PHP)		2,611,659
	50,000	Portugal Obrigacoes do Tesouro OT, 3.850%, 4/15/2021, (EUR)		49,729

				4,100,449


Principal Amount (‡)		Description	Value (†)

		Water Sewer — 0.2%
	540,000,000	Empresas Publicas de Medellin ESP, 8.375%, 1/31/2021, 144A, (COP)	$	298,118

		Wireless — 1.7%
	600,000	eAccess Ltd., 8.250%, 4/01/2018, 144A		609,780
	280,000	NII Capital Corp., 7.625%, 4/01/2021		286,300
	2,061,000	Sprint Capital Corp., 6.875%, 11/15/2028		1,901,272
	20,000	Sprint Capital Corp., 8.750%, 3/15/2032		21,275

				2,818,627

		Wirelines — 6.8%
	120,000	Axtel SAB de CV, 9.000%, 9/22/2019, 144A		115,200
	900,000	Bakrie Telecom Pte Ltd., 11.500%, 5/07/2015, 144A		960,750
	130,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		104,000
	530,000	Cincinnati Bell, Inc., 7.000%, 2/15/2015		536,625
	370,000	Cincinnati Bell, Inc., 8.750%, 3/15/2018		349,188
	95,000	Frontier Communications Corp., 7.000%, 11/01/2025		85,614
	1,245,000	Frontier Communications Corp., 7.875%, 1/15/2027		1,188,975
	605,000	Frontier Communications Corp., 9.000%, 8/15/2031		618,612
	1,910,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		1,895,675
	495,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		506,137
	425,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		433,500
	1,445,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		1,434,162
	275,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		286,000
	2,860,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		3,045,900
	10,000	Qwest Corp., 6.875%, 9/15/2033		10,013

				11,570,351

		Total Non-Convertible Bonds (Identified Cost $95,199,378)		103,548,413


	Convertible Bonds — 19.1%
		Automotive — 2.1%
	410,000	ArvinMeritor, Inc., (Step to Zero Coupon on 2/15/2019), 4.000%, 2/15/2027(g)		404,363
	1,720,000	Ford Motor Co., 4.250%, 11/15/2016		3,117,500

				3,521,863

		Diversified Manufacturing — 2.3%
	1,150,000	Owens-Brockway Glass Container, Inc., 3.000%, 6/01/2015, 144A		1,165,812
	2,515,000	Trinity Industries, Inc., 3.875%, 6/01/2036		2,741,350

				3,907,162

See accompanying notes to financial statements.

| 24

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Healthcare — 1.3%
$	35,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2016), 2.000%, 12/15/2037(g)	$	42,569
	1,560,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(g)		1,505,400
	515,000	Omnicare, Inc., 3.750%, 12/15/2025		663,706

				2,211,675

		Home Construction — 0.0%
	70,000	Lennar Corp., 2.000%, 12/01/2020, 144A		70,438

		Independent Energy — 2.4%
	1,975,000	Chesapeake Energy Corp., 2.250%, 12/15/2038		1,814,531
	1,300,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		1,412,125
	785,000	Penn Virginia Corp., 4.500%, 11/15/2012		810,513

				4,037,169

		Metals & Mining — 0.4%
	555,000	Peabody Energy Corp., 4.750%, 12/15/2066		735,375

		Pharmaceuticals — 4.6%
	845,000	Amylin Pharmaceuticals, Inc., 3.000%, 6/15/2014		726,700
	475,000	Human Genome Sciences, Inc., 2.250%, 10/15/2011		841,937
	840,000	Human Genome Sciences, Inc., 2.250%, 8/15/2012		1,360,800
	785,000	Kendle International, Inc., 3.375%, 7/15/2012		743,788
	505,000	Valeant Pharmaceuticals International, 4.000%, 11/15/2013		1,994,750
	1,755,000	Vertex Pharmaceuticals, Inc., 3.350%, 10/01/2015		2,132,325

				7,800,300

		Technology — 6.0%
	775,000	Alcatel-Lucent USA, Inc., Series B, 2.875%, 6/15/2025		749,812
	15,000	Ciena Corp., 0.250%, 5/01/2013		15,300
	2,845,000	Ciena Corp., 0.875%, 6/15/2017		2,777,431
	145,000	Ciena Corp., 3.750%, 10/15/2018, 144A		217,138
	40,000	Ciena Corp., 4.000%, 3/15/2015, 144A		58,600
	3,925,000	Intel Corp., 2.950%, 12/15/2035		4,037,844
	1,330,000	Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		1,328,337
	820,000	Micron Technology, Inc., 1.875%, 6/01/2014		891,750
	280,000	Nortel Networks Corp., 2.125%, 4/15/2014(f)		241,150

				10,317,362

		Total Convertible Bonds (Identified Cost $24,876,937)		32,601,344

		Total Bonds and Notes (Identified Cost $120,076,315)		136,149,757


Principal Amount (‡)		Description	Value (†)

	Bank Loans — 0.6%
		Media Non-Cable — 0.2%
$	349,332	SuperMedia, Inc., Exit Term Loan, 11.000%, 12/31/2015(h)	$	230,797
	224,012	Tribune Company, Term Loan X, 5.000%, 6/04/2009(f)(h)(i)		153,237

				384,034

		Technology — 0.0%
	2,342	Sungard Data Systems, Inc., Tranche A, 2.008%, 2/28/2014(h)		2,301

		Wireless — 0.0%
	17,815	Hawaiian Telcom Communications, Inc., Exit Term Loan, 9.000%, 11/01/2015(h)(j)		18,144

		Wirelines — 0.4%
	370,146	FairPoint Communications, Inc., New Term Loan B, 6.500%, 1/24/2016(h)		356,766
	250,000	Level 3 Financing, Inc., Add on Term Loan, 11.500%, 3/13/2014(h)		266,875

				623,641

		Total Bank Loans (Identified Cost $1,321,823)		1,028,120


Shares
	Preferred Stocks — 5.6%
	Convertible Preferred Stocks — 5.0%
		Automotive — 2.4%
	68,550	General Motors Co., Series B, 4.750%		3,304,110
	15,725	Goodyear Tire & Rubber Co. (The), 5.875%		803,233

				4,107,343

		Capital Markets — 1.5%
	55,115	Newell Financial Trust I, 5.250%		2,638,630

		Diversified Financial Services — 0.1%
	3,732	Sovereign Capital Trust IV, 4.375%		166,074

		Electric Utilities — 0.2%
	6,475	AES Trust III, 6.750%		315,980

		Machinery — 0.1%
	2,550	United Rentals Trust I, 6.500%		119,850

		Oil, Gas & Consumable Fuels — 0.2%
	9,500	El Paso Energy Capital Trust I, 4.750%		420,375

		Semiconductors & Semiconductor Equipment — 0.5%
	799	Lucent Technologies Capital Trust I, 7.750%		783,020

		Total Convertible Preferred Stocks (Identified Cost $7,826,938)		8,551,272

	Non-Convertible Preferred Stocks — 0.6%
		Banking — 0.6%
	26,825	Ally Financial, Inc., Series A, (fixed rate to 5/15/2016, variable rate thereafter), 8.500%		667,916

See accompanying notes to financial statements.

25 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles High Income Fund – (continued)


Shares		Description	Value (†)

		Banking — continued
	274	Ally Financial, Inc., Series G, 7.000%, 144A	$	254,957

		Total Non-Convertible Preferred Stocks (Identified Cost $738,910)		922,873

		Total Preferred Stocks (Identified Cost $8,565,848)		9,474,145

	Common Stocks — 1.4%
		Automobiles — 0.5%
	53,720	Ford Motor Co.(k)		800,965

		Biotechnology — 0.2%
	8,147	Vertex Pharmaceuticals, Inc.(k)		390,486

		Chemicals — 0.0%
	1,087	Ashland, Inc.		62,785

		Diversified Telecommunication Services — 0.2%
	14,623	FairPoint Communications, Inc.(k)		246,690
	593	Hawaiian Telcom Holdco, Inc.(k)		15,566

				262,256

		Household Durables — 0.0%
	1,775	KB Home		22,081

		Media — 0.0%
	388	Dex One Corp.(k)		1,878
	1,835	SuperMedia, Inc.(k)		11,451

				13,329

		Oil, Gas & Consumable Fuels — 0.4%
	35,176	El Paso Corp.		633,168

		Pharmaceuticals — 0.1%
	6,875	Merck & Co., Inc.		226,944

		Total Common Stocks (Identified Cost $2,484,531)		2,412,014

	Closed End Investment Companies — 0.0%
	1,772	Western Asset High Income Opportunity Fund, Inc. (Identified Cost $11,277)		11,270

	Warrants — 0.0%
	10,023	FairPoint Communications, Inc., Expiration on 1/24/2018(c)(k)(l) (Identified Cost $0)		—

Principal Amount (‡)
	Short-Term Investments — 9.8%
$	16,610,830	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011, at 0.000% to be repurchased at $16,610,830 on 4/01/2011 collateralized by $16,760,000 U.S. Treasury Note, 1.000% due 4/30/2012 valued at $16,947,100 including accrued interest (Note 2 to Financial Statements) (Identified Cost $16,610,830)		16,610,830


		Total Investments — 97.4%
		(Identified Cost $149,070,624)(a)		165,686,136
		Other assets less liabilities — 2.6%		4,380,600

		Net Assets — 100.0%	$	170,066,736



(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
(†)	See Note 2 of Notes to Financial Statements.
(††)	Amount shown represents units. One unit represents a principal amount of 100.
(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):
	At March 31, 2011, the net unrealized appreciation on investments based on a cost of $149,083,822 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	$	20,044,527
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(3,442,213	)

	Net unrealized appreciation	$	16,602,314


(b)	Variable rate security. Rate as of March 31, 2011 is disclosed.
(c)	Illiquid security. At March 31, 2011, the value of these securities amounted to $903,087 or 0.5% of net assets.
(d)	The issuer has made partial payment with respect to interest and/or principal. Income is not being accrued.
(e)	All or a portion of this security has been designated to cover the Fund’s obligations under open forward foreign currency contracts.
(f)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
(g)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(h)	Variable rate security. Rate shown represents the weighted average rate at March 31, 2011.
(i)	Issuer has filed for bankruptcy.
(j)	All or a portion of interest payment is paid-in-kind.
(k)	Non-income producing security.
(l)	Fair valued security by the Fund’s investment adviser. At March 31, 2011 the value of this security amounted to $0.

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 March 31, 2011, the value of Rule 144A holdings amounted to $16,015,853 or 9.4% of net assets.
ABS	Asset-Backed Securities
ARMs	Adjustable Rate Mortgages
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MTN	Medium Term Note

AUD	Australian Dollar
BRL	Brazilian Real
COP	Colombian Peso
EUR	Euro
IDR	Indonesian Rupiah
INR	Indian Rupee
ISK	Icelandic Krona
KRW	South Korean Won
MXN	Mexican Peso
PHP	Philippine Peso
SGD	Singapore Dollar
UYU	Uruguayan Peso

See accompanying notes to financial statements.

| 26

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles High Income Fund – (continued)

At March 31, 2011, the Fund had the following open forward foreign currency contracts:


Contract to Buy/Sell	Delivery Date		Currency	Units		Notional Value		Unrealized Depreciation
Sell¹		04/29/2011	Euro		1,100,000	$	1,558,195	$	(46,043	)

¹ Counterparty is Barclays.

Industry Summary at March 31, 2011 (Unaudited)


Technology	8.6	%
Wirelines	7.2
Automotive	5.8
Supranational	5.1
Pharmaceuticals	5.0
Sovereigns	4.7
Healthcare	4.7
Non-Captive Consumer	3.5
Home Construction	3.2
Banking	3.2
Gaming	2.8
Independent Energy	2.8
Treasuries	2.4
Diversified Manufacturing	2.3
Collateralized Mortgage Obligations	2.2
Other Investments, less than 2% each	24.1
Short-Term Investments	9.8

Total Investments	97.4
Other assets less liabilities (including open forward foreign currency contracts)	2.6

Net Assets	100.0	%

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles International Bond Fund


Principal Amount (‡)		Description	Value (†)

	Bonds and Notes — 98.0% of Net Assets
	Non-Convertible Bonds — 97.8%
		Argentina — 0.5%
$	136,600	Argentina Government International Bond, 8.280%, 12/31/2033	$	121,778

		Belgium — 0.8%
	100,000	Anheuser-Busch InBev NV, EMTN, 6.500%, 6/23/2017, (GBP)		179,640

		Brazil — 0.6%
	100,000	Telemar Norte Leste SA, 5.125%, 12/15/2017, 144A, (EUR)		138,106

		Canada — 7.6%
	225,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		230,368
	165,000	Corus Entertainment, Inc., 7.250%, 2/10/2017, 144A, (CAD)		181,679
	200,000	Province of Ontario, EMTN, 4.000%, 12/03/2019, (EUR)		285,970
	25,000,000	Province of Quebec Canada, 1.600%, 5/09/2013, (JPY)		305,921
	150,000	Province of Quebec Canada, EMTN, 3.375%, 6/20/2016, (EUR)		213,174
	200,000	Province of Quebec Canada, Series 169, EMTN, 3.625%, 2/10/2015, (EUR)		289,174
	200,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		211,218

				1,717,504

		Cayman Islands — 0.6%
	119,000	Fibria Overseas Finance Ltd., 7.500%, 5/04/2020, 144A		129,115

		Colombia — 0.6%
	105,000,000	Emgesa SA ESP, 8.750%, 1/25/2021, 144A, (COP)		59,129
	160,000,000	Empresas Publicas de Medellin ESP, 8.375%, 2/01/2021, 144A, (COP)		88,331

				147,460

		Denmark — 0.3%
	50,000	Kingdom of Denmark, EMTN, 1.750%, 10/05/2015, (EUR)		67,969

		Finland — 4.4%
	680,000	Finland Government Bond, 3.125%, 9/15/2014, (EUR)		987,981

		France — 0.3%
	50,000	Lafarge SA, EMTN, 5.375%, 6/26/2017, (EUR)		69,919

		Germany — 11.0%
	240,000	Bundesobligation, 2.250%, 4/10/2015, (EUR)		337,985
	670,000	Bundesrepublik Deutschland, 3.000%, 7/04/2020, (EUR)(b)		925,045
	175,000	Bundesrepublik Deutschland, 3.250%, 1/04/2020, (EUR)		247,489
	165,000	Bundesrepublik Deutschland, 3.750%, 7/04/2013, (EUR)		243,486
	235,000	Bundesrepublik Deutschland, Series 6, 3.750%, 1/04/2017, (EUR)		348,798
	255,000	Republic of Germany, 1.250%, 9/16/2011, (EUR)		361,852

				2,464,655


Principal Amount (‡)		Description	Value (†)

		Hungary — 0.3%
$	60,000	Hungary Government International Bond, 6.375%, 3/29/2021	$	60,060

		India — 0.4%
	100,000	Canara Bank Ltd., (fixed rate to 11/28/2016, variable rate thereafter), 6.365%, 11/28/2021		99,621

		Italy — 3.7%
	150,000	Finmeccanica SpA, EMTN, 4.875%, 3/24/2025, (EUR)		200,852
	470,000	Italy Buoni Poliennali Del Tesoro, 4.000%, 9/01/2020, (EUR)		631,454

				832,306

		Japan — 16.5%
	65,000,000	Japan Finance Organization for Municipal Enterprises, 1.350%, 11/26/2013, (JPY)		801,442
	94,000,000	Japan Government Five Year Bond, 0.700%, 6/20/2014, (JPY)		1,143,880
	70,200,000	Japan Government Ten Year Bond, 1.300%, 3/20/2019, (JPY)(b)		867,844
	50,000,000	Japan Government Ten Year Bond, 1.700%, 9/20/2017, (JPY)		638,668
	13,000,000	Japan Government Twenty Year Bond, 2.000%, 9/20/2025, (JPY)		162,083
	9,000,000	Japan Government Twenty Year Bond, Series 123, 2.100%, 12/20/2030, (JPY)		108,881

				3,722,798

		Jersey — 0.8%
	100,000	WPP PLC, 6.000%, 4/04/2017, (GBP)		170,948

		Korea — 0.6%
	6,000,000	Export-Import Bank of Korea, 4.000%, 11/26/2015, 144A, (PHP)		132,581

		Lithuania — 0.4%
	100,000	Lithuania Government International Bond, 6.125%, 3/09/2021, 144A		102,100

		Luxembourg — 1.2%
	150,000	Enel Finance International SA, EMTN, 5.625%, 8/14/2024, (GBP)		234,641
	25,000	Telecom Italia Finance SA, EMTN, 7.750%, 1/24/2033, (EUR)		37,912

				272,553

		Mexico — 3.4%
	160,000	Axtel SAB de CV, 9.000%, 9/22/2019, 144A		153,600
	20,500(†††)	Mexican Fixed Rate Bonds, Series M-10, 8.000%, 12/17/2015, (MXN)		179,786
	48,000(†††)	Mexican Fixed Rate Bonds, Series M-10, 8.500%, 12/13/2018, (MXN)		432,161

				765,547

		Netherlands — 3.2%
	260,000	Kingdom of Netherlands, 4.500%, 7/15/2017, (EUR)(b)		396,420
	45,000	Kingdom of Netherlands, 5.500%, 1/15/2028, (EUR)		76,153
	150,000	RWE Finance BV, EMTN, 5.500%, 7/06/2022, (GBP)		244,800

				717,373

See accompanying notes to financial statements.

| 28

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles International Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		New Zealand — 1.1%
	300,000	New Zealand Government Bond, 6.500%, 4/15/2013, (NZD)	$	242,490

		Norway — 4.2%
	2,500,000	Norwegian Government, 4.250%, 5/19/2017, (NOK)		470,293
	2,525,000	Norwegian Government, 4.500%, 5/22/2019, (NOK)		480,805

				951,098

		Peru — 0.4%
	240,000	Republic of Peru, 7.840%, 8/12/2020, 144A, (PEN)		91,774

		Philippines — 0.5%
	5,000,000	Philippine Government International Bond, 4.950%, 1/15/2021, (PHP)		112,938

		Poland — 1.1%
	700,000	Poland Government International Bond, 5.000%, 10/24/2013, (PLN)		245,651

		Singapore — 3.2%
	175,000	Singapore Government Bond, 1.625%, 4/01/2013, (SGD)		142,120
	690,000	Singapore Government Bond, 2.250%, 7/01/2013, (SGD)		570,098

				712,218

		South Africa — 0.8%
	150,000	Edcon Proprietary Ltd., 4.423%, 6/15/2014, 144A, (EUR)(c)		181,756

		Supranationals — 8.2%
	40,000,000	Asian Development Bank, EMTN, 2.350%, 6/21/2027, (JPY)		516,580
	921,000,000	European Investment Bank, EMTN, Zero Coupon, 4/24/2013, 144A, (IDR)	��	92,328
	260,000	European Investment Bank, 2.375%, 7/10/2020, (CHF)		288,472
	5,560,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 8/20/2015, (IDR)		441,480
	5,700,000	Inter-American Development Bank, EMTN, 4.750%, 1/10/2014, (INR)		124,289
	30,000,000	Nordic Investment Bank, Series C, GMTN, 1.700%, 4/27/2017, (JPY)		379,958

				1,843,107

		Sweden — 3.4%
	1,940,000	Sweden Government Bond, 5.000%, 12/01/2020, (SEK)		348,419
	2,500,000	Sweden Government Bond, 5.500%, 10/08/2012, (SEK)		414,534

				762,953

		Switzerland — 0.7%
	100,000	Credit Suisse London, EMTN, 5.125%, 9/18/2017, (EUR)		148,310

		United Arab Emirates — 0.4%
	100,000	DP World Ltd., 6.850%, 7/02/2037, 144A		92,000

		United Kingdom — 4.5%
	100,000	British Sky Broadcasting Group PLC, EMTN, 6.000%, 5/21/2027, (GBP)		165,338
	150,000	British Telecommunications PLC, 5.750%, 12/07/2028, (GBP)		231,077
	50,000	BSKYB Finance UK PLC, 5.750%, 10/20/2017, (GBP)		85,697


Principal Amount (‡)		Description	Value (†)

		United Kingdom — continued
	50,000	Standard Chartered Bank, Series 17, EMTN, 5.875%, 9/26/2017, (EUR)	$	73,316
	50,000	United Kingdom Treasury, 4.000%, 9/07/2016, (GBP)		85,191
	65,000	United Kingdom Treasury, 4.000%, 3/07/2022, (GBP)		105,521
	60,000	United Kingdom Treasury, 4.750%, 12/07/2038, (GBP)		102,587
	95,000	United Kingdom Treasury, 5.250%, 6/07/2012, (GBP)		159,940

				1,008,667

		United States — 10.7%
	130,000	Ally Financial, Inc., 6.750%, 12/01/2014		136,988
	100,000	BA Credit Card Trust, Series 04A1, 4.500%, 6/17/2016, (EUR)		144,052
	50,000	Cargill, Inc., EMTN, 5.375%, 3/02/2037, (GBP)		78,008
	100,000	Citibank Credit Card Issuance Trust, Series 2001-A4, Class A4, 5.375%, 4/10/2013, (EUR)		141,786
	15,000,000	Citigroup, Inc., 2.400%, 10/31/2025, (JPY)		162,999
	150,000	Ford Motor Credit Co. LLC, 6.625%, 8/15/2017		160,088
	150,000	Frontier Communications Corp., 9.000%, 8/15/2031		153,375
	50,000	Goldman Sachs Group, Inc. (The), 6.875%, 1/18/2038, (GBP)		80,002
	45,000	HCA, Inc., 8.360%, 4/15/2024		45,000
	200,000	HSBC Finance Corp., EMTN, 4.500%, 6/14/2016, (EUR)		287,377
	70,000	IPALCO Enterprises, Inc., 7.250%, 4/01/2016, 144A		75,775
	100,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		130,471
	95,000	Morgan Stanley, 5.375%, 11/14/2013, (GBP)		159,348
	55,000	NRG Energy, Inc., 8.250%, 9/01/2020, 144A		57,200
	100,000	Owens-Brockway Glass Container, Inc., 6.750%, 12/01/2014, (EUR)		143,846
	40,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		41,404
	100,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		140,938
	55,000	Valeant Pharmaceuticals International, 6.750%, 8/15/2021, 144A		52,181
	50,000	Wells Fargo & Co., 4.625%, 11/02/2035, (GBP)		69,856
	100,000	Zurich Finance USA, Inc., EMTN, (fixed rate to 6/15/2015, variable rate thereafter), 4.500%, 6/15/2025, (EUR)		141,201

				2,401,895

		Uruguay — 1.4%
	2,865,250	Uruguay Government International Bond, 3.700%, 6/26/2037, (UYU)		151,598
	2,496,807	Uruguay Government International Bond, 5.000%, 9/14/2018, (UYU)		153,873

				305,471

		Total Non-Convertible Bonds (Identified Cost $20,803,605)		22,000,342

See accompanying notes to financial statements.

29 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles International Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

	Convertible Bonds — 0.2%
		United States — 0.2%
$	50,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(d) (Identified Cost $35,248)	$	48,250

		Total Bonds and Notes (Identified Cost $20,838,853)		22,048,592


		Total Investments — 98.0%
		(Identified Cost $20,838,853)(a)		22,048,592
		Other assets less liabilities — 2.0%		447,640

		Net Assets — 100.0%	$	22,496,232


	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):
		At March 31, 2011, the net unrealized appreciation on investments based on a cost of $20,926,389 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	$	1,305,283
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(183,080	)

		Net unrealized appreciation	$	1,122,203

	(b)	All or a portion of this security has been designated to cover the Fund’s obligations under open forward foreign currency contracts.
	(c)	Variable rate security. Rate as of March 31, 2011 is disclosed.
	(d)	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 March 31, 2011, the value of Rule 144A holdings amounted to $1,627,655 or 7.2% of net assets.
	EMTN	Euro Medium Term Note
	GMTN	Global Medium Term Note
	MTN	Medium Term Note

	CAD	Canadian Dollar
	CHF	Swiss Franc
	COP	Colombian Peso
	EUR	Euro
	GBP	British Pound
	IDR	Indonesian Rupiah
	INR	Indian Rupee
	JPY	Japanese Yen
	MXN	Mexican Peso
	NOK	Norwegian Krone
	NZD	New Zealand Dollar
	PEN	Peruvian Nuevo Sol
	PHP	Philippine Peso
	PLN	Polish Zloty
	SEK	Swedish Krona
	SGD	Singapore Dollar
	UYU	Uruguayan Peso

At March 31, 2011, the Fund had the following open forward foreign currency contracts:


Contract to Buy/Sell	Delivery Date		Currency		Units		Notional Value		Unrealized Appreciation (Depreciation)
Buy¹		06/15/2011		Australian Dollar		420,000	$	430,572	$	11,627
Buy²		06/15/2011		Canadian Dollar		700,000		720,833		1,615
Buy¹		06/15/2011		Euro		310,000		438,719		8,492
Sell¹		06/15/2011		Euro		90,000		127,370		412
Buy³		06/15/2011		Japanese Yen		95,500,000		1,148,622		(11,315	)
Buy³		06/20/2011		Malaysian Ringgit		700,000		229,908		1,865
Buy⁴		06/02/2011		Polish Zloty		670,000		234,776		4,772
Sell⁴		06/02/2011		Polish Zloty		670,000		234,776		(4,476	)
Buy⁵		06/13/2011		South Korean Won		720,000,000		653,483		11,199
Buy¹		06/13/2011		South Korean Won		470,000,000		426,579		7,011

Total									$	31,202

At March 31, 2011, the Fund had the following open forward cross currency contracts:

Settlement Date

Deliver²/Units of
Currency

Receive/In
Exchange For

Unrealized
Appreciation

06/16/2011

British Pound

146,159

Euro

170,000

6,342

¹ Counterparty is Credit Suisse.

²Counterparty is UBS.

³Counterparty is JPMorgan Chase.

⁴Counterparty is Morgan Stanley.

⁵Counterparty is Barclays.

Industry Summary at March 31, 2011 (Unaudited)


Treasuries	51.0	%
Supranationals	8.2
Local Authorities	4.9
Banking	4.1
Sovereigns	3.8
Wirelines	3.6
Government Guaranteed	3.6
Electric	2.9
Media Non-Cable	2.7
Other Investments, less than 2% each	13.2

Total Investments	98.0
Other assets less liabilities (including open forward foreign currency contracts)	2.0

Net Assets	100.0	%

Currency Exposure at March 31, 2011 (Unaudited)


Euro	32.9	%
Japanese Yen	22.6
British Pound	9.7
U.S. Dollar	6.7
Norwegian Krone	4.2
Swedish Krona	3.4
Singapore Dollar	3.2
Canadian Dollar	2.7
Mexican Peso	2.7
Indonesian Rupiah	2.4
Other, less than 2% each	7.5

Total Investments	98.0
Other assets less liabilities (including open forward foreign currency contracts)	2.0

Net Assets	100.0	%

See accompanying notes to financial statements.

| 30

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Limited Term Government and Agency Fund


Principal Amount		Description	Value (†)

	Bonds and Notes — 98.6% of Net Assets
		ABS Car Loan — 2.3%
$	1,380,000	Ally Master Owner Trust, Series 2011-1, Class A2, 2.150%, 1/15/2016	$	1,380,122
	831,014	ARI Fleet Lease Trust, Series 2010-A, Class A, 1.705%, 8/15/2018, 144A(b)		837,158
	3,245,000	Navistar Financial Dealer Note Master Trust, Series 2010-1, Class A, 1.900%, 1/26/2015, 144A(b)		3,266,547
	1,810,000	Nissan Master Owner Trust Receivables, Series 2010-AA, Class A, 1.405%, 1/15/2015, 144A(b)		1,829,660
	35,916	USAA Auto Owner Trust, Series 2008-3, Class A3, 4.280%, 10/15/2012		36,022
	2,000,000	World Omni Auto Receivables Trust, Series 2011-A, Class A3, 1.110%, 5/15/2015		1,997,605

				9,347,114

		ABS Credit Card — 0.8%
	985,000	American Express Credit Account Master, Series 2004-2, Class A, 0.425%, 12/15/2016(b)		983,389
	2,100,000	World Financial Network Credit Card Master Trust, Series 2010-A, Class A, 3.960%, 4/15/2019		2,173,197

				3,156,586

		ABS Home Equity — 0.3%
	641,489	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035		603,540
	476,590	Residential Funding Mortgage Securities II, Series 2002-HI5, Class A7, 5.700%, 1/25/2028		460,584
	231,509	Residential Funding Mortgage Securities II, Series 2005-HI3, Class A4, 5.490%, 9/25/2035		228,592

				1,292,716

		ABS Student Loan — 0.3%
	1,336,986	NCUA Guaranteed Notes, Series 2010-A1, Class A, 0.586%, 12/07/2020(b)		1,338,390

		Collateralized Mortgage Obligations — 2.7%
	454,670	Federal Home Loan Mortgage Corp., Series 2901, Class UA, 5.000%, 1/15/2030		469,124
	5,263	Federal Home Loan Mortgage Corp., Series 3145, Class KA, 5.000%, 8/15/2024		5,262
	1,280,000	NCUA Guaranteed Notes, Series 2010-C1, Class A2, 2.900%, 10/29/2020		1,246,157
	2,392,048	NCUA Guaranteed Notes, Series 2010-R1, Class 1A, 0.690%, 10/07/2020(b)		2,395,038
	7,070,229	NCUA Guaranteed Notes, Series 2010-R3, Class 1A, 0.800%, 12/08/2020(b)		7,103,388

				11,218,969

		Commercial Mortgage-Backed Securities — 15.0%
	1,780,000	Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A4, 5.826%, 4/10/2049(b)		1,889,276


Principal Amount		Description	Value (†)

		Commercial Mortgage-Backed Securities — continued
$	1,500,000	Banc of America Commercial Mortgage, Inc., Series 2007-5, Class A4, 5.492%, 2/10/2051	$	1,575,075
	2,000,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		2,095,175
	360,000	Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A4, 5.431%, 10/15/2049		384,545
	1,500,000	Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4, 5.886%, 12/10/2049(b)		1,622,971
	1,470,000	Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.294%, 12/10/2049(b)		1,612,976
	3,200,500	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/2049		3,363,984
	1,400,000	Commercial Mortgage Pass Through Certificates, Series 2006-C7, Class A4, 5.951%, 6/10/2046(b)		1,528,469
	2,670,000	Credit Suisse Mortgage Capital Certificates, Series 2006-C3, Class A3, 6.018%, 6/15/2038(b)		2,889,338
	2,525,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C2, Class A3, 5.542%, 1/15/2049		2,619,146
	4,640,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		4,821,674
	1,500,000	Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4, 6.078%, 7/10/2038(b)		1,640,994
	5,000,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/2039		5,292,317
	1,860,000	GS Mortgage Securities Corp. II, Series 2006-GG6, Class A4, 5.553%, 4/10/2038		1,994,739
	1,140,000	GS Mortgage Securities Corp. II, Series 2006-GG8, Class A4, 5.560%, 11/10/2039		1,226,118
	5,000,000	GS Mortgage Securities Trust, Series 2007-GG10, Class A4, 6.002%, 8/10/2045(b)		5,308,677
	2,785,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-CB18, Class A4, 5.440%, 6/12/2047		2,936,739
	5,000,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3, 5.420%, 1/15/2049		5,273,191
	1,173,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-5, Class A4, 5.378%, 8/12/2048		1,215,336
	3,914,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051		4,099,338
	1,500,000	Morgan Stanley Capital I, Series 2007-IQ15, Class A4, 6.071%, 6/11/2049(b)		1,597,906
	815,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A4, 5.418%, 1/15/2045		875,119

See accompanying notes to financial statements.

31 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

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


Principal Amount		Description	Value (†)

		Commercial Mortgage-Backed Securities — continued
$	4,410,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/2048	$	4,664,728
	580,000	Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A5, 5.342%, 12/15/2043		600,599

				61,128,430

		Government Guaranteed — 1.0%
	1,800,000	General Electric Capital Corp., MTN, (FDIC insured), 2.125%, 12/21/2012		1,842,523
	2,340,000	US Central Federal Credit Union, (FDIC insured), 1.900%, 10/19/2012		2,384,360

				4,226,883

		Government Owned – No Guarantee — 17.4%
	16,000,000	Federal Home Loan Mortgage Corp., 1.625%, 4/26/2011		16,017,040
	6,435,000	Federal Home Loan Mortgage Corp., 1.750%, 6/15/2012		6,534,723
	11,920,000	Federal Home Loan Mortgage Corp., 2.125%, 3/23/2012		12,122,187
	5,400,000	Federal Home Loan Mortgage Corp., MTN, 0.181%, 2/02/2012(b)		5,398,499
	3,100,000	Federal Home Loan Mortgage Corp., MTN, 0.241%, 8/05/2011(b)		3,100,564
	17,970,000	Federal National Mortgage Association, 3.625%, 2/12/2013		18,881,852
	8,265,000	Federal National Mortgage Association, 4.750%, 11/19/2012		8,807,382

				70,862,247

		Government Sponsored — 3.6%
	1,070,000	Federal Home Loan Bank, 0.243%, 10/06/2011(b)		1,070,105
	6,800,000	Federal Home Loan Bank, 1.125%, 6/03/2011		6,811,995
	5,000,000	Federal Home Loan Bank, 1.625%, 7/27/2011		5,024,555
	1,700,000	Federal Home Loan Bank, 3.625%, 9/16/2011		1,727,815

				14,634,470

		Hybrid ARMs — 12.9%
	6,220,393	FHLMC, 5.518%, 4/01/2037(b)		6,587,158
	1,845,669	FHLMC, 5.692%, 4/01/2037(b)		1,955,016
	3,731,868	FHLMC, 5.944%, 6/01/2037(b)		3,961,136
	4,494,697	FNMA, 2.055%, 7/01/2035(b)		4,683,241
	5,866,500	FNMA, 2.597%, 8/01/2035(b)		6,179,863
	2,490,723	FNMA, 2.796%, 8/01/2034(b)		2,614,721
	5,674,373	FNMA, 3.400%, 6/01/2035(b)		5,930,915
	4,566,852	FNMA, 3.549%, 6/01/2036(b)		4,808,977
	1,006,756	FNMA, 4.340%, 8/01/2036(b)		1,062,232
	9,371,893	FNMA, 5.437%, 6/01/2037(b)		9,979,305


Principal Amount		Description	Value (†)

		Hybrid ARMs — continued
$	3,804,115	FNMA, 5.596%, 2/01/2047(b)	$	4,020,161
	642,805	FNMA, 5.983%, 2/01/2037(b)		683,648

				52,466,373

		Mortgage Related — 19.0%
	8,120,539	FHLMC, 4.000%, with various maturities from 2024 to 2025(c)		8,360,348
	13,554,463	FHLMC, 4.500%, with various maturities from 2025 to 2034(c)		14,221,824
	1,942,199	FHLMC, 5.500%, 10/01/2023		2,098,678
	2,694,386	FHLMC, 6.000%, with various maturities from 2019 to 2021(c)		2,935,464
	4,240,885	FHLMC, 6.500%, with various maturities from 2014 to 2034(c)		4,734,397
	121,271	FHLMC, 7.000%, 2/01/2016		131,612
	8,323	FHLMC, 7.500%, with various maturities from 2012 to 2026(c)		8,970
	8,009	FHLMC, 8.000%, 9/01/2015		8,825
	3,629	FHLMC, 10.000%, 7/01/2019		4,119
	100,003	FHLMC, 11.500%, with various maturities from 2015 to 2020(c)		103,018
	6,495,312	FNMA, 4.000%, with various maturities from 2018 to 2019(c)		6,798,016
	8,045,887	FNMA, 4.500%, with various maturities from 2019 to 2025(c)		8,452,659
	5,703,611	FNMA, 5.000%, 4/01/2040		5,977,573
	6,089,740	FNMA, 5.500%, with various maturities from 2017 to 2033(c)		6,589,364
	11,176,021	FNMA, 6.000%, with various maturities from 2017 to 2022(c)		12,211,676
	2,991,314	FNMA, 6.500%, with various maturities from 2017 to 2037(c)		3,367,500
	171,732	FNMA, 7.000%, 12/01/2022		189,192
	297,346	FNMA, 7.500%, with various maturities from 2015 to 2032(c)		342,455
	39,841	FNMA, 8.000%, with various maturities from 2015 to 2016(c)		44,034
	71,465	GNMA, 6.000%, 12/15/2031		79,073
	242,924	GNMA, 6.500%, 5/15/2031		275,111
	257,654	GNMA, 7.000%, 10/15/2028		297,749

See accompanying notes to financial statements.

| 32

Portfolio of Investments – as of March 31, 2011 (Unaudited)

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


Principal Amount		Description	Value (†)

		Mortgage Related — continued
$	1,638	GNMA, 12.500%, 6/15/2014	$	1,650
	9,196	GNMA, 16.000%, with various maturities from 2011 to 2012(c)		9,263
	635	GNMA, 17.000%, 11/15/2011		635

				77,243,205

		Treasuries — 23.3%
	35,970,000	U.S. Treasury Note, 1.375%, 9/15/2012		36,409,805
	57,335,000	U.S. Treasury Note, 1.750%, 4/15/2013		58,419,205

				94,829,010

		Total Bonds and Notes (Identified Cost $392,409,609)		401,744,393

	Short-Term Investments — 0.4%
	1,839,203	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011 at 0.000% to be repurchased at $1,839,203 on 4/01/2011 collateralized by $1,975,000 Federal National Mortgage Association, 3.420% due 11/24/2020 valued at $1,878,719 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $1,839,203)		1,839,203


		Total Investments — 99.0%
		(Identified Cost $394,248,812)(a)		403,583,596
		Other assets less liabilities — 1.0%		3,954,433

		Net Assets — 100.0%	$	407,538,029


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):
		At March 31, 2011, the net unrealized appreciation on investments based on a cost of $395,039,199 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	$	9,539,471
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(995,074	)

		Net unrealized appreciation	$	8,544,397


	(b)	Variable rate security. Rate as of March 31, 2011 is disclosed.
	(c)	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.



	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 March 31, 2011, the value of Rule 144A holdings amounted to $5,933,365 or 1.5% of net assets.
	ABS			Asset-Backed Securities
	ARMs			Adjustable Rate Mortgages
	FDIC			Federal Deposit Insurance Corporation
	FHLMC			Federal Home Loan Mortgage Corp.
	FNMA			Federal National Mortgage Association
	GNMA			Government National Mortgage Association
	MTN			Medium Term Note

Industry Summary at March 31, 2011 (Unaudited)


Treasuries	23.3	%
Mortgage Related	19.0
Government Owned - No Guarantee	17.4
Commercial Mortgage-Backed Securities	15.0
Hybrid ARMs	12.9
Government Sponsored	3.6
Collateralized Mortgage Obligations	2.7
ABS Car Loan	2.3
Other Investments, less than 2% each	2.4
Short-Term Investments	0.4

Total Investments	99.0
Other assets less liabilities	1.0

Net Assets	100.0	%

See accompanying notes to financial statements.

33 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund


Principal Amount (‡)		Description	Value (†)

	Bonds and Notes — 88.5% of Net Assets
	Non-Convertible Bonds — 77.8%
		ABS Car Loan — 0.1%
$	7,211,250	Avis Budget Rental Car Funding AESOP LLC, Series 2007-2A, Class A, 0.394%, 8/20/2013, 144A(b)	$	7,057,019
	4,093,750	Avis Budget Rental Car Funding AESOP LLC, Series 2010-5A, Class B, 5.110%, 3/20/2017, 144A		4,291,296

				11,348,315

		Aerospace & Defense — 0.1%
	620,000	Bombardier, Inc., 7.350%, 12/22/2026, (CAD)		654,399
	11,800,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		11,328,000

				11,982,399

		Airlines — 2.2%
	35,455,000	Air Canada, 10.125%, 8/01/2015, 144A, (CAD)		38,947,473
	179,522	American Airlines Pass Through Trust, Series 1993-A6, 8.040%, 9/16/2011		179,522
	1,567,240	American Airlines Pass Through Trust, Series 2009-1A, 10.375%, 1/02/2021		1,841,507
	102,607	Continental Airlines Pass Through Trust, Series 1996-1, Class A, 6.940%, 4/15/2015		104,403
	5,048,174	Continental Airlines Pass Through Trust, Series 1997-1, Class A, 7.461%, 10/01/2016		5,104,966
	2,534,842	Continental Airlines Pass Through Trust, Series 1997-4, Class B, 6.900%, 7/02/2018		2,528,505
	2,181,612	Continental Airlines Pass Through Trust, Series 1998-1, Class B, 6.748%, 9/15/2018		2,197,974
	4,506,400	Continental Airlines Pass Through Trust, Series 1999-1, Class B, 6.795%, 2/02/2020		4,416,272
	3,296,771	Continental Airlines Pass Through Trust, Series 1999-2, Class B, 7.566%, 9/15/2021		3,263,803
	1,314,717	Continental Airlines Pass Through Trust, Series 2000-1, Class A-1, 8.048%, 5/01/2022		1,433,042
	1,482,915	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022		1,605,256
	3,409,712	Continental Airlines Pass Through Trust, Series 2000-2, Class B, 8.307%, 10/02/2019		3,443,809
	1,861,429	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022		1,945,193
	2,596,637	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		2,603,128
	11,493,463	Continental Airlines Pass Through Trust, Series 2007-1, Class A, 5.983%, 10/19/2023		11,780,799
	19,298,951	Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.903%, 4/19/2022		19,443,693


Principal Amount (‡)		Description	Value (†)

		Airlines — continued
$	18,787,410	Continental Airlines Pass Through Trust, Series 2009-1, 9.000%, 7/08/2016	$	21,323,711
	16,943,625	Continental Airlines Pass Through Trust, Series 2009-2, Class A, 7.250%, 5/10/2021		18,299,115
	2,825,000	Delta Air Lines, Inc., 9.500%, 9/15/2014, 144A		3,001,562
	2,450,000	Delta Air Lines Pass Through Trust, Series 2001-1, Class A-2, 7.111%, 3/18/2013		2,523,500
	1,422,234	Delta Air Lines Pass Through Trust, Series 2007-1, Class A, 6.821%, 2/10/2024		1,468,456
	7,656,297	Delta Air Lines Pass Through Trust, Series 2007-1, Class B, 8.021%, 2/10/2024		7,905,127
	24,656,615	Delta Air Lines Pass Through Trust, Series 2007-1, Class C, 8.954%, 8/10/2014		25,581,238
	6,763,459	Delta Air Lines Pass Through Trust, Series 2009-1, Series B, 9.750%, 12/17/2016		7,169,267
	2,107,285	Northwest Airlines, Inc., Series 2002-1, Class G2, (MBIA insured), 6.264%, 5/20/2023		2,170,503
	19,092,799	Northwest Airlines, Inc., Series 2007-1, Class B, 8.028%, 11/01/2017		19,474,655
	1,500,000	Qantas Airways Ltd., 5.125%, 6/20/2013, 144A		1,578,426
	32,710,000	Qantas Airways Ltd., 6.050%, 4/15/2016, 144A		34,836,804
	19,762,558	UAL Pass Through Trust, Series 2007-1, Class A, 6.636%, 1/02/2024		19,960,184
	10,694,272	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		12,244,941
	19,140,000	US Airways Pass Through Trust, Series 2010-1, Class B, 8.500%, 10/22/2018		19,235,700

				297,612,534

		Automotive — 1.9%
	265,000	ArvinMeritor, Inc., 8.125%, 9/15/2015		275,600
	1,853,000	Cummins, Inc., 6.750%, 2/15/2027		1,944,686
	6,500,000	FCE Bank PLC, EMTN, 7.125%, 1/16/2012, (EUR)		9,488,150
	4,500,000	FCE Bank PLC, EMTN, 7.125%, 1/15/2013, (EUR)		6,696,267
	19,011,000	Ford Motor Co., 6.375%, 2/01/2029		17,960,490
	1,975,000	Ford Motor Co., 6.500%, 8/01/2018		2,067,827
	1,220,000	Ford Motor Co., 6.625%, 2/15/2028		1,184,607
	74,829,000	Ford Motor Co., 6.625%, 10/01/2028		72,623,565
	2,365,000	Ford Motor Co., 7.125%, 11/15/2025		2,296,179
	90,200,000	Ford Motor Co., 7.450%, 7/16/2031		97,651,422

See accompanying notes to financial statements.

| 34

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Automotive — continued
$	1,345,000	Ford Motor Co., 7.500%, 8/01/2026	$	1,350,384
	22,410,000	Ford Motor Credit Co. LLC, 7.000%, 4/15/2015		24,257,167
	4,977,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		4,678,380
	9,635,000	Goodyear Tire & Rubber Co. (The), 10.500%, 5/15/2016		10,791,200
	3,100,000	TRW Automotive, Inc., 7.250%, 3/15/2017, 144A		3,410,000
	5,300,000	TRW Automotive, Inc., 8.875%, 12/01/2017, 144A		5,936,000

				262,611,924

		Banking — 6.2%
	16,175,000	AgriBank FCB, 9.125%, 7/15/2019, 144A		19,311,025
	20,565,000	Associates Corp. of North America, 6.950%, 11/01/2018		22,983,033
	22,125,000	BAC Capital Trust VI, 5.625%, 3/08/2035		19,307,403
	1,675,000	Bank of America Corp., 5.420%, 3/15/2017		1,709,981
	4,560,000	Bank of America Corp., 6.000%, 9/01/2017		4,887,399
	8,020,000	Bank of America NA, 5.300%, 3/15/2017		8,233,861
	39,890,000,000	Barclays Bank PLC, EMTN, 3.680%, 8/20/2015, (KRW)		35,504,155
	56,650,000,000	Barclays Financial LLC, 4.470%, 12/04/2011, 144A, (KRW)		51,781,958
	224,520,000,000	BNP Paribas SA, EMTN, Zero Coupon, 6/13/2011, 144A, (IDR)		25,452,046
	47,120,000	Citigroup, Inc., 5.000%, 9/15/2014		49,202,845
	985,000	Citigroup, Inc., 5.850%, 12/11/2034		965,862
	22,790,000	Citigroup, Inc., 5.875%, 2/22/2033		21,425,335
	10,819,000	Citigroup, Inc., 6.000%, 10/31/2033		10,330,944
	6,060,000	Citigroup, Inc., 6.125%, 8/25/2036		5,778,786
	45,862,000	Citigroup, Inc., 6.375%, 8/12/2014		50,697,598
	3,350,000	Citigroup, Inc., EMTN, (fixed rate to 11/30/2012, variable rate thereafter), 3.625%, 11/30/2017, (EUR)		4,462,016
	64,000,000	Citigroup, Inc., MTN, 5.500%, 10/15/2014		69,030,400
	9,905,000	First Niagara Finance Group, Inc., 6.750%, 3/19/2020		10,804,651
	400,000	Goldman Sachs Group, Inc. (The), 6.450%, 5/01/2036		391,189
	30,375,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		30,637,106
	1,285,000	Goldman Sachs Group, Inc. (The), GMTN, 5.375%, 3/15/2020		1,304,705
	3,120,000	HBOS PLC, 6.000%, 11/01/2033, 144A		2,347,784
	119,806,078	HSBC Bank USA, Zero Coupon, 11/28/2011, 144A		117,038,558
	9,090,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		9,044,550


Principal Amount (‡)		Description	Value (†)

		Banking — continued
	229,157,783,660	JPMorgan Chase & Co., Zero Coupon, 4/12/2012, 144A, (IDR)	$	24,727,724
	260,000,000,000	JPMorgan Chase & Co., EMTN, 7.070%, 3/22/2014, (IDR)		29,644,330
	27,555,000	Lloyds TSB Bank PLC, MTN, 6.500%, 9/14/2020, 144A		27,089,486
	3,010,000	Merrill Lynch & Co., Inc., 5.700%, 5/02/2017		3,099,337
	1,400,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		1,327,784
	51,500,000	Merrill Lynch & Co., Inc., 10.710%, 3/08/2017, (BRL)		31,859,247
	3,450,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		4,501,237
	5,410,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		6,008,844
	800,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		735,512
	1,235,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.400%, 8/28/2017		1,346,246
	8,835,000	Morgan Stanley, 4.750%, 4/01/2014		9,206,211
	13,400,000	Morgan Stanley, 5.500%, 7/24/2020		13,390,580
	3,300,000	Morgan Stanley, 5.750%, 1/25/2021		3,330,677
	79,700,000	Morgan Stanley, GMTN, 7.625%, 3/03/2016, (AUD)		83,046,145
	6,600,000	Morgan Stanley, Series F, GMTN, 5.625%, 9/23/2019		6,740,811
	7,900,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018		8,683,016
	5,210,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		5,596,259
	5,050,000	Morgan Stanley, Series G & H, GMTN, 5.125%, 11/30/2015, (GBP)		8,334,658

				841,301,294

		Brokerage — 0.0%
	880,000	Jefferies Group, Inc., 6.250%, 1/15/2036		813,402
	3,285,000	Jefferies Group, Inc., 8.500%, 7/15/2019		3,875,311

				4,688,713

		Building Materials — 1.0%
	3,255,000	Masco Corp., 4.800%, 6/15/2015		3,234,510
	2,220,000	Masco Corp., 5.850%, 3/15/2017		2,176,683
	13,440,000	Masco Corp., 6.125%, 10/03/2016		13,784,978
	2,045,000	Masco Corp., 6.500%, 8/15/2032		1,845,175
	18,935,000	Owens Corning, Inc., 6.500%, 12/01/2016		20,616,447
	35,980,000	Owens Corning, Inc., 7.000%, 12/01/2036		36,103,519
	46,412,000	USG Corp., 6.300%, 11/15/2016		43,627,280
	14,155,000	USG Corp., 9.750%, 1/15/2018		14,827,363

				136,215,955

See accompanying notes to financial statements.

35 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Chemicals — 0.8%
$	36,355,000	Chevron Phillips Chemical Co. LLC, 8.250%, 6/15/2019, 144A	$	43,404,634
	14,550,000	Hercules, Inc., 6.500%, 6/30/2029		12,240,187
	5,200,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 8.875%, 2/01/2018		5,499,000
	5,350,000	Methanex Corp., Senior Note, 6.000%, 8/15/2015		5,361,503
	23,584,000	Momentive Specialty Chemicals, Inc., 7.875%, 2/15/2023		19,338,880
	7,420,000	Momentive Specialty Chemicals, Inc., 8.375%, 4/15/2016		6,900,600
	8,757,000	Momentive Specialty Chemicals, Inc., 9.200%, 3/15/2021		8,144,010
	700,000	Mosaic Global Holdings, Inc., 7.375%, 8/01/2018		796,043

				101,684,857

		Collateralized Mortgage Obligations — 0.1%
	5,340,261	Banc of America Alternative Loan Trust, Series 2007-1, Class 2A1, 5.763%, 4/25/2037(b)		4,228,584
	4,998,745	Banc of America Funding Corp., Series 2007-8, Class 4A1, 6.000%, 8/25/2037		4,470,613
	6,934,447	WaMu Mortgage Pass Through Certificates, Series 2007-OA6, Class 2A, 2.734%, 7/25/2047(b)		4,358,307
	6,027,486	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR4, Class 2A2, 2.753%, 4/25/2035(b)		5,810,093

				18,867,597

		Commercial Mortgage-Backed Securities — 0.0%
	3,438,699	GSR Mortgage Loan Trust, Series 2005-AR2, Class 2A1, 2.745%, 4/25/2035(b)		3,101,115

		Construction Machinery — 0.7%
	48,305,000	Case New Holland, Inc., 7.750%, 9/01/2013		52,592,069
	1,425,000	Joy Global, Inc., 6.625%, 11/15/2036		1,443,380
	1,335,000	RSC Equipment Rental, Inc./RSC Holdings III LLC, 9.500%, 12/01/2014		1,398,412
	10,790,000	Terex Corp., 8.000%, 11/15/2017		11,369,962
	26,935,000	United Rentals North America, Inc., 10.875%, 6/15/2016		31,109,925

				97,913,748

		Consumer Cyclical Services — 0.6%
	670,000	ServiceMaster Co. (The), 7.100%, 3/01/2018		629,800
	5,500,000	ServiceMaster Co. (The), 7.450%, 8/15/2027		4,441,250
	70,369,000	Western Union Co. (The), 6.200%, 11/17/2036		68,861,626
	1,048,000	Western Union Co. (The), 6.200%, 6/21/2040		1,028,471

				74,961,147


Principal Amount (‡)		Description	Value (†)

		Distributors — 0.0%
$	1,500,000	EQT Corp., 8.125%, 6/01/2019	$	1,788,021

		Diversified Manufacturing — 0.4%
	6,100,000	Fibria Overseas Finance Ltd., 7.500%, 5/04/2020, 144A		6,618,500
	1,441,000	Textron Financial Corp., 5.400%, 4/28/2013		1,515,271
	550,000	Textron Financial Corp., Series E, MTN, 5.125%, 8/15/2014		564,623
	13,850,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		19,519,923
	5,020,000	Textron, Inc., 5.600%, 12/01/2017		5,245,378
	16,040,000	Textron, Inc., EMTN, 6.625%, 4/07/2020, (GBP)		25,441,825

				58,905,520

		Electric — 3.3%
	8,212,273	AES Ironwood LLC, 8.857%, 11/30/2025		8,150,681
	992,181	AES Red Oak LLC, Series A, 8.540%, 11/30/2019		1,007,063
	52,100,000	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		54,872,241
	70,050,991	Bruce Mansfield Unit, 6.850%, 6/01/2034(c)		73,508,042
	3,145,728	CE Generation LLC, 7.416%, 12/15/2018		3,228,247
	31,115,000	Cleveland Electric Illuminating Co. (The), 5.950%, 12/15/2036		29,105,095
	11,275,000	Dynegy Holdings, Inc., 7.125%, 5/15/2018		8,287,125
	10,185,000	Dynegy Holdings, Inc., 7.625%, 10/15/2026		7,078,575
	8,955,000	Dynegy Holdings, Inc., 7.750%, 6/01/2019		6,951,319
	95,200,000	Edison Mission Energy, 7.625%, 5/15/2027		70,924,000
	13,200,000	EDP Finance BV, 4.900%, 10/01/2019, 144A		11,521,831
	250,000	Empresa Nacional de Electricidad SA (Endesa-Chile), 8.350%, 8/01/2013		280,159
	4,875,000	Endesa SA/Cayman Islands, 7.875%, 2/01/2027		5,444,137
	5,940,000	Energy Future Holdings Corp., 10.000%, 1/15/2020		6,294,470
	555,000	Enersis SA, Cayman Islands, 7.400%, 12/01/2016		640,489
	5,310,000	ITC Holdings Corp., 6.375%, 9/30/2036, 144A		5,555,423
	31,735,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027(c)		16,184,850
	1,255,375	Quezon Power Philippines LC, 8.860%, 6/15/2017		1,368,359
	25,230,000	RRI Energy, Inc., 7.875%, 6/15/2017		25,040,775
	655,000	Texas Competitive Electric Holdings Co. LLC, Series A, 10.250%, 11/01/2015		383,175
	50,270,000	TXU Corp., Series P, 5.550%, 11/15/2014		32,926,850
	101,735,000	TXU Corp., Series Q, 6.500%, 11/15/2024		47,561,112

See accompanying notes to financial statements.

| 36

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Electric — continued
$	6,675,000	TXU Corp., Series R, 6.550%, 11/15/2034	$	3,070,500
	7,300,000	White Pine Hydro LLC, 6.310%, 7/10/2017(c)		7,577,619
	10,935,000	White Pine Hydro LLC, 6.960%, 7/10/2037(c)		10,355,445
	4,000,000	White Pine Hydro Portfolio LLC, 7.260%, 7/20/2015(c)		3,792,600

				441,110,182

		Financial Other — 0.2%
	20,000,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A		25,122,300

		Food & Beverage — 0.2%
	2,085,000	ARAMARK Corp., 5.000%, 6/01/2012		2,126,700
	23,710,000	Corn Products International, Inc., 6.625%, 4/15/2037		24,782,617
	965,000	Smithfield Foods, Inc., 7.750%, 7/01/2017		1,037,375
	4,370,000	Viterra, Inc., 6.406%, 2/16/2021, 144A, (CAD)		4,670,739

				32,617,431

		Government Owned – No Guarantee — 0.8%
	26,435,000	Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A		29,111,544
	19,500,000	DP World Ltd., 6.850%, 7/02/2037, 144A		17,940,000
	70,300,000,000	Export-Import Bank of Korea, 6.600%, 11/04/2013, 144A, (IDR)		7,800,615
	499,300,000,000	Export-Import Bank of Korea, 8.300%, 3/15/2014, 144A, (IDR)		57,943,457

				112,795,616

		Health Insurance — 0.1%
	7,885,000	CIGNA Corp., 6.150%, 11/15/2036		8,041,990

		Healthcare — 2.5%
	4,075,000	Boston Scientific Corp., 5.125%, 1/12/2017		4,168,102
	2,765,000	Boston Scientific Corp., 5.450%, 6/15/2014		2,950,960
	10,230,000	Boston Scientific Corp., 6.000%, 1/15/2020		10,719,168
	4,155,000	Boston Scientific Corp., 6.400%, 6/15/2016		4,530,379
	16,510,000	Boston Scientific Corp., 7.000%, 11/15/2035		16,860,425
	17,785,000	HCA, Inc., 5.750%, 3/15/2014		18,118,469
	3,800,000	HCA, Inc., 6.250%, 2/15/2013		3,942,500
	17,035,000	HCA, Inc., 6.375%, 1/15/2015		17,375,700
	49,350,000	HCA, Inc., 6.500%, 2/15/2016		50,213,625
	2,074,000	HCA, Inc., 6.750%, 7/15/2013		2,180,293
	14,620,000	HCA, Inc., 7.050%, 12/01/2027		13,011,800
	11,104,000	HCA, Inc., 7.190%, 11/15/2015		11,159,520
	20,447,000	HCA, Inc., 7.500%, 12/15/2023		19,322,415


Principal Amount (‡)		Description	Value (†)

		Healthcare — continued
$	24,215,000	HCA, Inc., 7.500%, 11/06/2033	$	22,217,262
	46,148,000	HCA, Inc., 7.690%, 6/15/2025		43,955,970
	32,745,000	HCA, Inc., 8.360%, 4/15/2024		32,745,000
	15,815,000	HCA, Inc., MTN, 7.580%, 9/15/2025		14,905,638
	9,492,000	HCA, Inc., MTN, 7.750%, 7/15/2036		8,875,020
	3,260,000	Owens & Minor, Inc., 6.350%, 4/15/2016(c)		3,344,740
	32,559,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		26,983,271
	4,765,000	Tenet Healthcare Corp., 9.250%, 2/01/2015		5,247,456

				332,827,713

		Home Construction — 0.9%
	11,265,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		11,602,950
	4,830,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2015		4,008,900
	16,075,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016		11,975,875
	6,040,000	K. Hovnanian Enterprises, Inc., 6.375%, 12/15/2014		5,481,300
	2,490,000	K. Hovnanian Enterprises, Inc., 6.500%, 1/15/2014		2,259,675
	6,290,000	K. Hovnanian Enterprises, Inc., 7.500%, 5/15/2016		4,780,400
	1,685,000	KB Home, 5.750%, 2/01/2014		1,701,850
	8,340,000	KB Home, 5.875%, 1/15/2015		8,235,750
	5,805,000	KB Home, 6.250%, 6/15/2015		5,746,950
	11,315,000	KB Home, 7.250%, 6/15/2018		11,088,700
	3,745,000	Pulte Group, Inc., 5.200%, 2/15/2015		3,716,912
	47,260,000	Pulte Group, Inc., 6.000%, 2/15/2035		36,980,950
	13,190,000	Pulte Group, Inc., 6.375%, 5/15/2033		10,716,875
	2,060,000	Toll Brothers Finance Corp., 5.150%, 5/15/2015		2,102,671

				120,399,758

		Independent Energy — 1.1%
	5,990,000	Anadarko Petroleum Corp., 6.375%, 9/15/2017		6,593,163
	48,410,000	Anadarko Petroleum Corp., 6.450%, 9/15/2036		48,347,503
	4,185,000	Chesapeake Energy Corp., 6.250%, 1/15/2017, (EUR)		6,160,805
	14,650,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		15,840,312
	22,690,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		24,505,200
	15,054,000	Connacher Oil and Gas Ltd., 10.250%, 12/15/2015, 144A		15,957,240
	3,000,000	Connacher Oil and Gas Ltd., 11.750%, 7/15/2014, 144A		3,225,000

See accompanying notes to financial statements.

37 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Independent Energy — continued
$	6,495,000	Hilcorp Energy I LP, 7.750%, 11/01/2015, 144A	$	6,722,325
	4,798,000	Pioneer Natural Resources Co., 7.200%, 1/15/2028		5,003,292
	13,570,000	QEP Resources, Inc., 6.875%, 3/01/2021		14,248,500
	2,499,000	Swift Energy Co., 7.125%, 6/01/2017		2,555,228

				149,158,568

		Industrial Other — 0.2%
	20,000,000	Ranhill Labuan Ltd., 12.500%, 10/26/2011, 144A		17,600,000
	10,000,000	Worthington Industries, Inc., 6.500%, 4/15/2020		10,696,550

				28,296,550

		Life Insurance — 0.6%
	2,185,000	American International Group, Inc., Series G, MTN, 5.600%, 10/18/2016		2,266,798
	19,625,000	American International Group, Inc., Series G, MTN, 5.850%, 1/16/2018		20,442,107
	4,815,000	American International Group, Inc., Series MP, GMTN, 5.450%, 5/18/2017		4,942,785
	2,855,000	American International Group, Inc., Series MPLE, 4.900%, 6/02/2014, (CAD)		2,974,265
	15,930,000	MetLife, Inc., 6.400%, 12/15/2066		15,342,183
	9,620,000	MetLife, Inc., 10.750%, 8/01/2069		13,275,600
	8,920,000	NLV Financial Corp., 7.500%, 8/15/2033, 144A		8,575,795
	3,910,000	Penn Mutual Life Insurance Co. (The), 6.650%, 6/15/2034, 144A		3,788,993
	6,700,000	Unum Group, 7.125%, 9/30/2016		7,553,138

				79,161,664

		Local Authorities — 1.9%
	3,905,000	Manitoba (Province of), GMTN, 6.375%, 9/01/2015, (NZD)		3,154,416
	79,755,000	New South Wales Treasury Corp., 6.000%, 5/01/2012, (AUD)		83,399,527
	10,530,000	New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012, (AUD)		11,009,573
	66,305,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		68,236,696
	72,695,000	Queensland Treasury Corp., 7.125%, 9/18/2017, 144A, (NZD)		60,105,706
	26,730,000	Queensland Treasury Corp., Series 14, 5.750%, 11/21/2014, (AUD)		27,848,617

				253,754,535

		Lodging — 0.0%
	5,850,000	Wyndham Worldwide Corp., 5.750%, 2/01/2018		6,061,489

		Media Cable — 1.4%
	145,710,000	Comcast Corp., 6.950%, 8/15/2037		158,632,145


Principal Amount (‡)		Description	Value (†)

		Media Cable — continued
$	400,000	CSC Holdings LLC, 7.875%, 2/15/2018	$	444,000
	25,270,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		26,687,414

				185,763,559

		Media Non-Cable — 0.3%
	5,200,000	Clear Channel Communications, Inc., 5.000%, 3/15/2012		5,161,000
	3,785,000	Clear Channel Communications, Inc., 5.750%, 1/15/2013		3,747,150
	37,790,000	News America, Inc., 6.150%, 3/01/2037		37,445,128

				46,353,278

		Metals & Mining — 0.5%
	10,000,000	Alcoa, Inc., 5.720%, 2/23/2019		10,399,180
	3,949,000	Alcoa, Inc., 5.870%, 2/23/2022		4,041,197
	1,405,000	Alcoa, Inc., 5.950%, 2/01/2037		1,325,480
	4,330,000	Alcoa, Inc., 6.750%, 1/15/2028		4,529,483
	12,745,000	Algoma Acquisition Corp., 9.875%, 6/15/2015, 144A		11,725,400
	7,000,000	United States Steel Corp., 6.050%, 6/01/2017		7,218,750
	6,779,000	United States Steel Corp., 6.650%, 6/01/2037		6,236,680
	16,435,000	United States Steel Corp., 7.000%, 2/01/2018		17,071,856

				62,548,026

		Non-Captive Consumer — 5.1%
	69,019,000	Residential Capital LLC, 9.625%, 5/15/2015		69,622,916
	995,000	SLM Corp., 6.000%, 5/10/2012, (AUD)		1,001,606
	109,950(††)	SLM Corp., 6.000%, 12/15/2043		2,310,874
	20,970,000	SLM Corp., MTN, 5.050%, 11/14/2014		21,167,705
	3,695,000	SLM Corp., MTN, 5.125%, 8/27/2012		3,813,373
	2,160,000	SLM Corp., MTN, 8.000%, 3/25/2020		2,354,400
	54,478,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		56,389,633
	41,770,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		42,055,289
	14,465,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		13,593,108
	19,605,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		20,392,180
	24,705,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		25,618,789
	35,405,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		30,269,434
	95,060,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		106,467,200
	25,600,000	Springleaf Finance Corp., 3.250%, 1/16/2013, (EUR)		33,831,131
	7,920,000	Springleaf Finance Corp., MTN, 5.750%, 9/15/2016		7,128,000

See accompanying notes to financial statements.

| 38

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Non-Captive Consumer — continued
$	6,900,000	Springleaf Finance Corp., Series H, MTN, 5.375%, 10/01/2012	$	6,787,875
	10,700,000	Springleaf Finance Corp., Series I, MTN, 4.875%, 7/15/2012		10,512,750
	17,610,000	Springleaf Finance Corp., Series I, MTN, 5.850%, 6/01/2013		17,213,775
	600,000	Springleaf Finance Corp., Series J, MTN, 5.200%, 12/15/2011		598,500
	300,000	Springleaf Finance Corp., Series J, MTN, 5.625%, 8/17/2011		300,375
	2,900,000	Springleaf Finance Corp., Series J, MTN, 5.900%, 9/15/2012		2,871,000
	800,000	Springleaf Finance Corp., Series J, MTN, 6.500%, 9/15/2017		712,000
	240,295,000	Springleaf Finance Corp., Series J, MTN, 6.900%, 12/15/2017		219,569,556

				694,581,469

		Non-Captive Diversified — 8.4%
	22,211,000	Ally Financial, Inc., 6.750%, 12/01/2014		23,404,841
	2,947,000	Ally Financial, Inc., 6.875%, 8/28/2012		3,094,350
	17,038,000	Ally Financial, Inc., 7.500%, 12/31/2013		18,337,147
	35,400,000	Ally Financial, Inc., 7.500%, 9/15/2020, 144A		37,745,250
	32,711,000	Ally Financial, Inc., 8.000%, 12/31/2018		35,123,436
	25,955,000	Ally Financial, Inc., 8.000%, 11/01/2031		28,290,950
	49,800,000	Ally Financial, Inc., 8.300%, 2/12/2015		54,593,250
	19,005,000	Aviation Capital Group Corp., 6.750%, 4/06/2021, 144A		19,052,512
	9,495,481	CIT Group, Inc., 7.000%, 5/01/2013		9,673,521
	27,144,615	CIT Group, Inc., 7.000%, 5/01/2014		27,653,577
	27,144,615	CIT Group, Inc., 7.000%, 5/01/2015		27,382,130
	61,650,794	CIT Group, Inc., 7.000%, 5/01/2016		61,727,857
	70,757,457	CIT Group, Inc., 7.000%, 5/01/2017		70,845,904
	3,100,000	General Electric Capital Corp., EMTN, 6.125%, 5/17/2012, (GBP)		5,189,498
	79,035,000	General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)		62,674,665
	65,300,000	General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012, (SGD)		52,631,852
	115,000,000	General Electric Capital Corp., Series A, GMTN, 3.485%, 3/08/2012, (SGD)		92,707,608
	58,490,000	General Electric Capital Corp., Series A, GMTN, 7.625%, 12/10/2014, (NZD)		48,194,931
	15,305,000	General Electric Capital Corp., Series A, MTN, 0.603%, 5/13/2024(b)		13,399,114
	245,797,000	General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		195,206,684


Principal Amount (‡)		Description	Value (†)

		Non-Captive Diversified — continued
	5,760,000	General Motors Acceptance Corp. of Canada Ltd., EMTN, 7.125%, 9/13/2011, (AUD)	$	5,906,236
	360,000	International Lease Finance Corp., 5.875%, 5/01/2013		369,000
	10,985,000	International Lease Finance Corp., 6.375%, 3/25/2013		11,369,475
	20,610,000	International Lease Finance Corp., 7.125%, 9/01/2018, 144A		22,145,445
	16,430,000	International Lease Finance Corp., 8.250%, 12/15/2020		18,011,388
	24,750,000	International Lease Finance Corp., 8.875%, 9/15/2015, 144A		27,225,000
	415,000	International Lease Finance Corp., Series Q, MTN, 5.250%, 1/10/2013		420,188
	2,620,000	International Lease Finance Corp., Series R, MTN, 5.625%, 9/20/2013		2,662,575
	2,547,000	International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		2,559,735
	34,782,000	iStar Financial, Inc., 5.150%, 3/01/2012		34,521,135
	3,010,000	iStar Financial, Inc., 5.500%, 6/15/2012		2,979,900
	16,160,000	iStar Financial, Inc., 5.650%, 9/15/2011		16,200,400
	11,800,000	iStar Financial, Inc., 5.850%, 3/15/2017		10,295,500
	20,478,000	iStar Financial, Inc., 5.875%, 3/15/2016		18,225,420
	4,300,000	iStar Financial, Inc., 6.050%, 4/15/2015		3,934,500
	35,130,000	iStar Financial, Inc., 8.625%, 6/01/2013		35,656,950
	2,920,000	iStar Financial, Inc., Series B, 5.700%, 3/01/2014		2,730,200
	44,610,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		42,267,975

				1,144,410,099

		Oil Field Services — 1.3%
	7,015,000	Allis-Chalmers Energy, Inc., 8.500%, 3/01/2017		7,523,588
	7,160,000	Allis-Chalmers Energy, Inc., 9.000%, 1/15/2014		7,312,150
	10,860,000	Nabors Industries, Inc., 6.150%, 2/15/2018		11,890,049
	77,565,000	Nabors Industries, Inc., 9.250%, 1/15/2019		97,774,638
	3,095,000	Parker Drilling Co., 9.125%, 4/01/2018		3,327,125
	16,035,000	Rowan Cos., Inc., 7.875%, 8/01/2019		19,020,332
	15,520,000	Weatherford International Ltd., 6.500%, 8/01/2036		15,518,153
	2,975,000	Weatherford International Ltd., 6.800%, 6/15/2037		3,093,887
	9,580,000	Weatherford International Ltd., 7.000%, 3/15/2038		10,146,916

				175,606,838

See accompanying notes to financial statements.

39 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Packaging — 0.3%
	2,450,000	OI European Group BV, 6.875%, 3/31/2017, 144A, (EUR)	$	3,550,262
	1,750,000	Owens-Brockway Glass Container, Inc., 6.750%, 12/01/2014, (EUR)		2,517,300
	33,261,000	Owens-Illinois, Inc., 7.800%, 5/15/2018		36,296,066

				42,363,628

		Paper — 1.1%
	12,430,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		12,989,350
	11,605,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		12,243,275
	120,000	Georgia-Pacific LLC, 7.700%, 6/15/2015		135,900
	42,425,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		46,614,469
	16,475,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		18,822,687
	11,003,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		13,286,122
	14,520,000	Westvaco Corp., 7.950%, 2/15/2031		15,190,926
	25,210,000	Westvaco Corp., 8.200%, 1/15/2030		26,904,767
	2,840,000	Weyerhaeuser Co., 6.950%, 10/01/2027		2,826,263
	5,490,000	Weyerhaeuser Co., 7.375%, 3/15/2032		5,789,134

				154,802,893

		Pharmaceuticals — 0.1%
	11,957,000	Elan Finance PLC/Elan Finance Corp., 8.875%, 12/01/2013		12,360,549

		Pipelines — 2.5%
	19,745,000	DCP Midstream LP, 6.450%, 11/03/2036, 144A		20,072,175
	15,685,000	El Paso Corp., 6.950%, 6/01/2028		15,890,568
	1,500,000	El Paso Corp., 7.420%, 2/15/2037		1,535,073
	1,000,000	El Paso Corp., GMTN, 7.750%, 1/15/2032		1,120,582
	750,000	El Paso Corp., GMTN, 7.800%, 8/01/2031		832,021
	5,255,000	Energy Transfer Partners LP, 6.125%, 2/15/2017		5,866,850
	9,115,000	Energy Transfer Partners LP, 6.625%, 10/15/2036		9,524,108
	13,175,000	Enterprise Products Operating LLP, 6.300%, 9/15/2017		14,854,193
	5,100,000	Florida Gas Transmission Co., 7.900%, 5/15/2019, 144A		6,151,508
	44,419,359	Maritimes & Northeast Pipeline LLC, 7.500%, 5/31/2014, 144A(c)		48,045,755
	81,710,000	NGPL PipeCo LLC, 7.119%, 12/15/2017, 144A		91,297,279
	43,450,000	NiSource Finance Corp., 6.400%, 3/15/2018		48,610,383
	20,770,000	Plains All American Pipeline LP, 6.125%, 1/15/2017		23,002,235
	44,730,000	Plains All American Pipeline LP, 6.650%, 1/15/2037		47,298,173


Principal Amount (‡)		Description	Value (†)

		Pipelines — continued
$	4,168,000	Transportadora de Gas del Sur SA, 7.875%, 5/14/2017, 144A	$	4,115,900

				338,216,803

		Property & Casualty Insurance — 0.3%
	3,405,000	Hanover Insurance Group, Inc. (The), 7.500%, 3/01/2020		3,619,416
	11,075,000	Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033		10,425,496
	6,080,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A		3,344,000
	11,200,000	White Mountains Re Group Ltd., 6.375%, 3/20/2017, 144A		11,461,374
	4,445,000	XL Group PLC, 6.250%, 5/15/2027		4,413,458
	1,425,000	XL Group PLC, 6.375%, 11/15/2024		1,482,197

				34,745,941

		Property Trust — 0.4%
	46,015,000	WEA Finance LLC/WT Finance Australia Property Ltd., 6.750%, 9/02/2019, 144A		52,798,439

		Railroads — 0.0%
	1,153,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(c)		786,923

		Refining — 0.0%
	1,335,000	Valero Energy Corp., 6.625%, 6/15/2037		1,345,619

		REITs – Apartments — 0.3%
	2,025,000	Camden Property Trust, 5.000%, 6/15/2015		2,165,588
	27,950,000	Camden Property Trust, 5.700%, 5/15/2017		30,595,551
	3,300,000	ERP Operating LP, 5.125%, 3/15/2016		3,543,731

				36,304,870

		REITs – Diversified — 0.0%
	4,030,000	Duke Realty LP, 5.950%, 2/15/2017		4,347,230

		REITs – Office Property — 0.4%
	47,305,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		50,345,150

		REITs – Regional Malls — 0.0%
	4,900,000	Simon Property Group LP, 5.750%, 12/01/2015		5,449,692
	450,000	Simon Property Group LP, 6.125%, 5/30/2018		504,321

				5,954,013

		REITs – Warehouse/Industrials — 0.1%
	4,180,000	ProLogis, 5.625%, 11/15/2015		4,436,079
	3,915,000	ProLogis, 5.625%, 11/15/2016		4,100,966
	4,635,000	ProLogis, 5.750%, 4/01/2016		4,978,453
	1,662,000	ProLogis, 6.625%, 5/15/2018		1,800,229
	1,100,000	ProLogis, 6.875%, 3/15/2020		1,203,652

See accompanying notes to financial statements.

| 40

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		REITs – Warehouse/Industrials — continued
$	2,080,000	ProLogis, 7.375%, 10/30/2019	$	2,355,698

				18,875,077

		Retailers — 1.1%
	8,758,000	Dillard’s, Inc., 6.625%, 1/15/2018		8,626,630
	3,325,000	Dillard’s, Inc., 7.000%, 12/01/2028		2,959,250
	4,187,000	Dillard’s, Inc., 7.130%, 8/01/2018		4,218,402
	1,500,000	Dillard’s, Inc., 7.750%, 7/15/2026		1,440,000
	425,000	Dillard’s, Inc., 7.875%, 1/01/2023		414,375
	10,270,000	Foot Locker, Inc., 8.500%, 1/15/2022		10,372,700
	3,685,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		3,712,638
	37,064,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		33,403,930
	635,000	J.C. Penney Corp., Inc., 7.125%, 11/15/2023		657,225
	3,985,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		3,566,575
	15,907,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		15,907,000
	12,275,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		11,876,062
	2,365,000	Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		2,394,563
	6,365,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		6,077,907
	32,675,000	Toys R Us, Inc., 7.375%, 10/15/2018		32,756,687
	8,355,000	Toys R Us, Inc., 7.875%, 4/15/2013		8,981,625

				147,365,569

		Sovereigns — 3.9%
	104,626,000,000	Indonesia Treasury Bond, Series FR43, 10.250%, 7/15/2022, (IDR)		13,640,407
	10,000,000,000	Indonesia Treasury Bond, Series FR47, 10.000%, 2/15/2028, (IDR)		1,227,580
	272,460,000,000	Indonesia Treasury Bond, Series ZC3, Zero Coupon, 11/20/2012, (IDR)		28,338,531
	2,350,305(†††)	Mexican Fixed Rate Bonds, Series M-10, 7.250%, 12/15/2016, (MXN)		19,979,109
	18,686,981(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		159,479,038
	2,037,000(†††)	Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012, (MXN)		18,106,933
	56,700,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		34,555,171
	140,235,000	Republic of Brazil, 12.500%, 1/05/2016, (BRL)		97,489,802
	107,840,000	Republic of Brazil, 12.500%, 1/05/2022, (BRL)		76,620,463
	18,400,000	Republic of Croatia, 6.750%, 11/05/2019, 144A		19,274,000
	3,401,600,000	Republic of Iceland, 4.250%, 8/24/2012, (ISK)		17,843,066
	3,178,700,000	Republic of Iceland, 7.250%, 5/17/2013, (ISK)		17,836,954


Principal Amount (‡)		Description	Value (†)

		Sovereigns — continued
	3,722,839,000	Republic of Iceland, 8.000%, 7/22/2011, (ISK)	$	19,520,600

				523,911,654

		Supermarkets — 0.7%
	2,000,000	American Stores Co., 7.900%, 5/01/2017		1,925,000
	72,681,000	New Albertson’s, Inc., 7.450%, 8/01/2029		57,417,990
	19,060,000	New Albertson’s, Inc., 7.750%, 6/15/2026		15,867,450
	4,895,000	New Albertson’s, Inc., 8.000%, 5/01/2031		4,013,900
	1,510,000	New Albertson’s, Inc., 8.700%, 5/01/2030		1,294,825
	13,242,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		9,600,450

				90,119,615

		Supranational — 1.5%
	20,250,000	European Bank for Reconstruction & Development, GMTN, 9.250%, 9/10/2012, (BRL)		12,397,939
	16,375,000	European Investment Bank, 11.250%, 2/14/2013, (BRL)		10,304,922
	460,500,000,000	European Investment Bank, EMTN, Zero Coupon, 4/24/2013, 144A, (IDR)		46,163,704
	24,398,000	European Investment Bank, EMTN, 7.000%, 1/18/2012, (NZD)		19,172,115
	60,665,000	European Investment Bank, MTN, 6.250%, 4/15/2015, (AUD)		63,781,671
	244,840,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 5/20/2013, (IDR)		23,953,970
	24,450,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		19,513,813
	8,300,000	International Bank for Reconstruction & Development, 1.430%, 3/05/2014, (SGD)		6,611,679

				201,899,813

		Technology — 2.2%
	1,370,000	Advanced Micro Devices, Inc., 7.750%, 8/01/2020		1,407,675
	41,705,000	Agilent Technologies, Inc., 6.500%, 11/01/2017		46,526,181
	832,000	Alcatel-Lucent, EMTN, 6.375%, 4/07/2014, (EUR)		1,220,379
	52,300,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		44,978,000
	5,065,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		4,355,900
	2,435,000	Arrow Electronics, Inc., 6.875%, 6/01/2018		2,654,600
	10,600,000	Avnet, Inc., 5.875%, 3/15/2014		11,395,413
	35,630,000	Avnet, Inc., 6.000%, 9/01/2015		38,272,321
	11,345,000	Avnet, Inc., 6.625%, 9/15/2016		12,417,046
	6,150,000	Corning, Inc., 6.850%, 3/01/2029		6,921,905
	4,725,000	Corning, Inc., 7.250%, 8/15/2036		5,394,405
	3,640,000	Eastman Kodak Co., 7.250%, 11/15/2013		3,621,800

See accompanying notes to financial statements.

41 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Technology — continued
$	11,626,000	Equifax, Inc., 7.000%, 7/01/2037	$	12,393,723
	285,000	Freescale Semiconductor, Inc., 8.875%, 12/15/2014		295,331
	6,290,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016		6,683,125
	475,000	Motorola Solutions, Inc., 6.000%, 11/15/2017		519,843
	10,830,000	Motorola Solutions, Inc., 6.500%, 9/01/2025		11,395,824
	22,539,000	Motorola Solutions, Inc., 6.500%, 11/15/2028		23,162,812
	23,255,000	Motorola Solutions, Inc., 6.625%, 11/15/2037		24,952,662
	9,350,000	Nortel Networks Capital Corp., 7.875%, 6/15/2026(d)		6,872,250
	11,770,000	Nortel Networks Ltd., 6.875%, 9/01/2023(d)		3,060,200
	255,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		299,457
	21,822,000	Xerox Capital Trust I, 8.000%, 2/01/2027		22,203,885
	1,730,000	Xerox Corp., MTN, 7.200%, 4/01/2016		1,987,310

				292,992,047

		Tobacco — 0.6%
	52,930,000	Reynolds American, Inc., 6.750%, 6/15/2017		60,528,208
	13,400,000	Reynolds American, Inc., 7.250%, 6/15/2037		14,182,064

				74,710,272

		Transportation Services — 0.4%
	10,503,000	APL Ltd., 8.000%, 1/15/2024(c)		7,194,555
	12,832,050	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 7/02/2015		12,703,730
	6,862,758	Atlas Air Pass Through Trust, Series 1998-1, Class C, 8.010%, 7/02/2011(e)		5,764,717
	7,354,307	Atlas Air Pass Through Trust, Series 1999-1, Class A-1, 7.200%, 7/02/2020		7,207,221
	144,698	Atlas Air Pass Through Trust, Series 1999-1, Class A-2, 6.880%, 7/02/2011		141,804
	9,382,134	Atlas Air Pass Through Trust, Series 1999-1, Class B, 7.630%, 7/02/2016		8,350,099
	4,744,556	Atlas Air Pass Through Trust, Series 1999-1, Class C, 8.770%, 7/02/2012(e)		3,795,645
	4,424,401	Atlas Air Pass Through Trust, Series 2000-1, Class B, 10.128%, 7/02/2017(e)		4,468,645
	3,970,000	Erac USA Finance Co., 7.000%, 10/15/2037, 144A		4,325,426

				53,951,842

		Treasuries — 14.3%
	26,685,000	Canadian Government, 1.000%, 9/01/2011, (CAD)		27,521,745


Principal Amount (‡)		Description	Value (†)

		Treasuries — continued
	43,965,000	Canadian Government, 1.250%, 12/01/2011, (CAD)	$	45,372,606
	320,680,000	Canadian Government, 2.000%, 9/01/2012, (CAD)		332,624,048
	130,216,000	Canadian Government, 3.500%, 6/01/2013, (CAD)		138,868,413
	171,980,000	Canadian Government, 3.750%, 6/01/2019, (CAD)		183,980,461
	25,445,000	Canadian Government, 4.250%, 6/01/2018, (CAD)		28,206,288
	4,104,177	Hellenic Republic Government Bond, 2.300%, 7/25/2030, (EUR)		2,913,334
	1,350,000	Hellenic Republic Government Bond, 4.600%, 7/20/2018, (EUR)		1,178,734
	26,550,000	Hellenic Republic Government Bond, 4.700%, 3/20/2024, (EUR)		22,316,363
	112,100,000	Ireland Government Bond, 4.500%, 10/18/2018, (EUR)		112,176,733
	37,675,000	Ireland Government Bond, 4.500%, 4/18/2020, (EUR)		36,173,749
	6,250,000	Ireland Government Bond, 5.000%, 10/18/2020, (EUR)		6,106,447
	78,825,000	Ireland Government Bond, 5.400%, 3/13/2025, (EUR)		74,396,004
	22,670,000	New Zealand Government Bond, 6.000%, 12/15/2017, (NZD)		18,096,168
	151,035,000	New Zealand Government Bond, 6.500%, 4/15/2013, (NZD)		122,081,485
	457,420,000	Norwegian Government, 4.250%, 5/19/2017, (NOK)		86,048,558
	221,050,000	Norwegian Government, 5.000%, 5/15/2015, (NOK)		42,530,416
	366,200,000	Norwegian Government, 6.000%, 5/16/2011, (NOK)		66,492,424
	1,180,775,000	Norwegian Government, 6.500%, 5/15/2013, (NOK)		229,341,190
	24,800,000	Portugal Obrigacoes do Tesouro OT, 3.850%, 4/15/2021, (EUR)		24,665,846
	6,225,000	Portugal Obrigacoes do Tesouro OT, 4.800%, 6/15/2020, (EUR)		6,845,659
	337,510,000	U.S. Treasury Bond, 4.250%, 11/15/2040		322,796,589

				1,930,733,260

		Utility Other — 0.0%
	3,300,000	Listrindo Capital BV, 9.250%, 1/29/2015, 144A		3,650,823

		Wireless — 1.2%
	42,310,000	Nextel Communications, Inc., Series C, 5.950%, 3/15/2014		42,415,775
	30,755,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		30,870,331
	3,628,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		3,655,210
	24,636,000	Sprint Capital Corp., 6.875%, 11/15/2028		22,726,710
	29,252,000	Sprint Capital Corp., 6.900%, 5/01/2019		30,202,690
	6,260,000	Sprint Capital Corp., 8.750%, 3/15/2032		6,659,075
	11,309,000	Sprint Nextel Corp., 6.000%, 12/01/2016		11,351,409
	13,320,000	True Move Co. Ltd., 10.750%, 12/16/2013, 144A		14,418,900

				162,300,100

See accompanying notes to financial statements.

| 42

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Wirelines — 3.5%
$	6,265,000	AT&T Corp., 6.500%, 3/15/2029	$	6,628,771
	5,650,000	Axtel SAB de CV, 9.000%, 9/22/2019, 144A		5,424,000
	4,370,000	Bell Canada, MTN, 6.550%, 5/01/2029, 144A, (CAD)		4,774,907
	8,445,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		9,846,896
	25,560,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		26,169,802
	2,715,000	BellSouth Telecommunications, Inc., 7.000%, 12/01/2095		2,766,664
	350,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		280,000
	155,000	Cincinnati Bell, Inc., 7.000%, 2/15/2015		156,938
	5,330,000	Embarq Corp., 7.995%, 6/01/2036		6,009,047
	38,336,000	Frontier Communications Corp., 7.875%, 1/15/2027		36,610,880
	10,555,000	GTE Corp., 6.940%, 4/15/2028		11,702,276
	1,120,000	Koninklijke (Royal) KPN NV, EMTN, 5.750%, 3/18/2016, (GBP)		1,923,317
	1,800,000	Koninklijke (Royal) KPN NV, GMTN, 4.000%, 6/22/2015, (EUR)		2,592,616
	50,080,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		49,704,400
	13,010,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		13,302,725
	2,555,000	Level 3 Financing, Inc., 9.375%, 4/01/2019, 144A		2,471,962
	7,000,000	Portugal Telecom International Finance BV, EMTN, 4.500%, 6/16/2025, (EUR)		7,590,690
	13,700,000	Portugal Telecom International Finance BV, EMTN, 5.000%, 11/04/2019, (EUR)		16,672,592
	16,335,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		16,661,700
	42,460,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		42,141,550
	12,463,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		12,961,520
	32,395,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		34,500,675
	31,060,000	Qwest Corp., 6.875%, 9/15/2033		31,098,825
	3,075,000	Qwest Corp., 7.200%, 11/10/2026		3,090,375
	3,999,000	Qwest Corp., 7.250%, 9/15/2025		4,258,935
	2,288,000	Qwest Corp., 7.500%, 6/15/2023		2,293,720
	5,470,000	SK Broadband Co. Ltd., 7.000%, 2/01/2012, 144A		5,688,800
	23,000,000	Telecom Italia Capital SA, 6.000%, 9/30/2034		20,811,688
	19,635,000	Telecom Italia Capital SA, 6.375%, 11/15/2033		18,529,883
	31,690,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		33,855,837
	18,600,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)		19,266,684


Principal Amount (‡)		Description	Value (†)

		Wirelines — continued
$	11,680,000	Verizon Maryland, Inc., Series B, 5.125%, 6/15/2033	$	10,542,800
	3,346,000	Verizon New England, Inc., 7.875%, 11/15/2029		3,870,823
	6,835,000	Verizon New York, Inc., Series B, 7.375%, 4/01/2032		7,668,501
	5,215,000	Verizon Pennsylvania, Inc., 6.000%, 12/01/2028		4,856,104

				476,726,903

		Total Non-Convertible Bonds (Identified Cost $9,671,016,051)		10,533,203,237

	Convertible Bonds — 9.4%
		Airlines — 0.1%
	10,950,000	AMR Corp., 6.250%, 10/15/2014		11,524,875
	1,255,000	UAL Corp., 4.500%, 6/30/2021		1,272,319

				12,797,194

		Automotive — 1.7%
	2,020,000	ArvinMeritor, Inc., (Step to Zero Coupon on 2/15/2019), 4.000%, 2/15/2027(f)		1,992,225
	121,370,000	Ford Motor Co., 4.250%, 11/15/2016		219,983,125
	8,460,000	Navistar International Corp., 3.000%, 10/15/2014		12,774,600

				234,749,950

		Diversified Manufacturing — 0.4%
	30,570,000	Owens-Brockway Glass Container, Inc., 3.000%, 6/01/2015, 144A		30,990,337
	16,727,000	Trinity Industries, Inc., 3.875%, 6/01/2036		18,232,430

				49,222,767

		Electric — 0.0%
	1,800,000	CMS Energy Corp., 5.500%, 6/15/2029		2,616,750

		Healthcare — 0.5%
	19,215,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(f)		18,542,475
	12,005,000	Life Technologies Corp., 1.500%, 2/15/2024		13,925,800
	190,000	LifePoint Hospitals, Inc., 3.250%, 8/15/2025		196,413
	2,380,000	LifePoint Hospitals, Inc., 3.500%, 5/15/2014		2,534,700
	5,445,000	Omnicare, Inc., 3.250%, 12/15/2035		5,050,237
	20,495,000	Omnicare, Inc., 3.750%, 12/15/2025		26,412,931

				66,662,556

		Independent Energy — 0.1%
	7,395,000	Chesapeake Energy Corp., 2.250%, 12/15/2038		6,794,156
	7,230,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		7,853,588

				14,647,744

See accompanying notes to financial statements.

43 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Life Insurance — 0.5%
$	72,915,000	Old Republic International Corp., 3.750%, 3/15/2018	$	73,188,431

		Lodging — 0.2%
	26,513,000	Host Hotels & Resorts, Inc., 2.625%, 4/15/2027, 144A		26,546,141

		Media Non-Cable — 0.0%
	7,672,291	Liberty Media LLC, 3.500%, 1/15/2031		4,296,483

		Metals & Mining — 0.2%
	1,000,000	Steel Dynamics, Inc., 5.125%, 6/15/2014		1,280,000
	11,270,000	United States Steel Corp., 4.000%, 5/15/2014		20,553,663

				21,833,663

		Non-Captive Diversified — 0.3%
	44,035,000	iStar Financial, Inc., 0.803%, 10/01/2012(b)		40,181,938

		Pharmaceuticals — 1.5%
	635,000	Human Genome Sciences, Inc., 2.250%, 10/15/2011		1,125,538
	41,680,000	Human Genome Sciences, Inc., 2.250%, 8/15/2012		67,521,600
	2,240,000	Kendle International, Inc., 3.375%, 7/15/2012		2,122,400
	24,461,000	Nektar Therapeutics, 3.250%, 9/28/2012		24,644,457
	28,222,000	Valeant Pharmaceuticals International, 4.000%, 11/15/2013		111,476,900

				206,890,895

		REITs – Warehouse/Industrials — 0.2%
	19,445,000	ProLogis, 3.250%, 3/15/2015		22,823,569

		Technology — 2.8%
	220,000	Ciena Corp., 0.250%, 5/01/2013		224,400
	33,805,000	Ciena Corp., 0.875%, 6/15/2017		33,002,131
	5,535,000	Ciena Corp., 3.750%, 10/15/2018, 144A		8,288,663
	6,075,000	Ciena Corp., 4.000%, 3/15/2015, 144A		8,899,875
	11,463,000	Intel Corp., 2.950%, 12/15/2035		11,792,561
	220,000,000	Intel Corp., 3.250%, 8/01/2039		258,775,000
	9,197,000	Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		9,185,504
	15,555,000	Micron Technology, Inc., 1.875%, 6/01/2014		16,916,062
	745,000	Nortel Networks Corp., 1.750%, 4/15/2012(d)		641,631
	30,767,000	Nortel Networks Corp., 2.125%, 4/15/2014(d)		26,498,079

				374,223,906

		Textile — 0.0%
	85,000	Dixie Yarns, Inc., 7.000%, 5/15/2012		82,450

		Wirelines — 0.9%
	14,735,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		14,532,394


Principal Amount (‡)		Description	Value (†)

		Wirelines — continued
$	6,000,000	Level 3 Communications, Inc., 6.500%, 10/01/2016	$	8,782,500
	54,075,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(c)		62,929,781
	32,895,000	Level 3 Communications, Inc., Series B, 7.000%, 3/15/2015(c)		38,281,556

				124,526,231

		Total Convertible Bonds (Identified Cost $949,413,275)		1,275,290,668

	Municipals — 1.3%
		California — 0.3%
	4,170,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), Series C, (MBIA insured), 3.750%, 8/01/2028		2,883,347
	1,530,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), Series C, (Registered), (MBIA insured), 3.750%, 8/01/2028		1,139,100
	5,175,000	State of California, (AMBAC insured), 4.500%, 8/01/2027		4,660,709
	14,415,000	State of California, 4.500%, 10/01/2029		12,529,950
	4,190,000	State of California, (AMBAC insured), 4.500%, 8/01/2030		3,607,129
	4,075,000	State of California, 4.500%, 8/01/2030		3,508,127
	2,680,000	State of California (Various Purpose), (MBIA insured), 3.250%, 12/01/2027		1,996,573
	12,645,000	State of California (Various Purpose), (AMBAC insured), 4.500%, 12/01/2033		10,656,194

				40,981,129

		District of Columbia — 0.0%
	3,850,000	Metropolitan Washington DC Airports Authority, Series D, 8.000%, 10/01/2047		3,745,011

		Illinois — 0.3%
	1,725,000	Chicago O’Hare International Airport, Series A, (AGMC insured), 4.500%, 1/01/2038		1,342,705
	47,285,000	State of Illinois, 5.100%, 6/01/2033		38,341,988

				39,684,693

		Michigan — 0.1%
	12,700,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034(c)		9,008,237

		Virginia — 0.6%
	128,820,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(c)		81,021,339

		Total Municipals (Identified Cost $226,163,474)		174,440,409

		Total Bonds and Notes
		(Identified Cost $10,846,592,800)		11,982,934,314

See accompanying notes to financial statements.

| 44

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)

	Bank Loans — 0.3%
		Electric — 0.0%
$	4,967,910	Texas Competitive Electric Holdings Company, LLC, Term Loan B2, 3.783%, 10/10/2014(g)	$	4,181,639

		Media Non-Cable — 0.1%
	3,007,479	Dex Media West, LLC, New Term Loan, 7.000%, 10/24/2014(g)		2,662,251
	25,732,821	SuperMedia, Inc., Exit Term Loan, 11.000%, 12/31/2015(g)		17,001,160

				19,663,411

		Wireless — 0.1%
	8,511,351	Hawaiian Telcom Communications, Inc., Exit Term Loan, 9.000%, 11/01/2015(g)(h)		8,668,811

		Wirelines — 0.1%
	7,755,097	FairPoint Communications, Inc., New Term Loan B, 6.500%, 1/24/2016(g)		7,474,750
	2,335,000	Level 3 Financing, Inc., Tranche A Term Loan, 2.553%, 3/13/2014(g)		2,263,619

				9,738,369

		Total Bank Loans (Identified Cost $59,426,104)		42,252,230


Shares
	Common Stocks — 5.3%
		Biotechnology — 0.3%
	867,059	Vertex Pharmaceuticals, Inc.(e)		41,558,138

		Containers & Packaging — 0.1%
	460,656	Owens-Illinois, Inc.(e)		13,907,205
	5,474	Smurfit-Stone Container Corp.(e)		211,570

				14,118,775

		Diversified Telecommunication Services — 0.1%
	183,181	FairPoint Communications, Inc.(e)		3,090,264
	283,397	Hawaiian Telcom Holdco, Inc.(e)		7,439,171

				10,529,435

		Electric Utilities — 0.0%
	282,500	Duke Energy Corp.		5,127,375

		Electronic Equipment, Instruments & Components — 0.0%
	41,343	Corning, Inc.		852,906

		Food Products — 0.4%
	2,309,175	ConAgra Foods, Inc.		54,842,906

		Household Durables — 0.1%
	477,725	KB Home		5,942,899
	549,450	Lennar Corp., Class A		9,956,034

				15,898,933

		Media — 0.0%
	4,701	Dex One Corp.(e)		22,753
	56,625	SuperMedia, Inc.(e)		353,340

				376,093

		Oil, Gas & Consumable Fuels — 0.3%
	846,398	Chesapeake Energy Corp.		28,371,261
	216,429	Repsol YPF SA, Sponsored ADR		7,455,979
	141,249	Spectra Energy Corp.		3,839,148

				39,666,388

		Pharmaceuticals — 1.7%
	7,978,200	Bristol-Myers Squibb Co.		210,863,826


Shares		Description	Value (†)

		Pharmaceuticals — continued
	2,288	Teva Pharmaceutical Industries, Ltd., Sponsored ADR	$	114,789
	459,757	Valeant Pharmaceuticals International, Inc.		22,900,496

				233,879,111

		REITs – Apartments — 0.4%
	290,904	Apartment Investment & Management Co., Class A		7,409,325
	889,730	Associated Estates Realty Corp.		14,128,912
	460,000	Equity Residential		25,948,600

				47,486,837

		REITs – Regional Malls — 0.1%
	123,159	Simon Property Group, Inc.		13,197,719

		REITs – Shopping Centers — 0.0%
	201,557	Developers Diversified Realty Corp.		2,821,798

		Semiconductors & Semiconductor Equipment — 1.8%
	11,932,326	Intel Corp.		240,675,015

		Total Common Stocks (Identified Cost $643,543,343)		721,031,429

	Preferred Stocks — 2.9%
	Convertible Preferred Stocks — 2.1%
		Automotive — 0.9%
	1,971,675	General Motors Co., Series B, 4.750%		95,034,735
	642,890	Goodyear Tire & Rubber Co. (The), 5.875%		32,838,821

				127,873,556

		Capital Markets — 0.1%
	186,526	Newell Financial Trust I, 5.250%		8,929,932

		Commercial Banks — 0.1%
	8,533	Wells Fargo & Co., Series L, Class A, 7.500%		8,833,362

		Diversified Financial Services — 0.2%
	19,062	Bank of America Corp., Series L, 7.250%		19,271,491
	203,258	Sovereign Capital Trust IV, 4.375%		9,044,981

				28,316,472

		Electric Utilities — 0.1%
	380,577	AES Trust III, 6.750%		18,572,158
	107,725	CMS Energy Trust I, 7.750%(c)(i)		4,847,625

				23,419,783

		Household Durables — 0.1%
	355,000	Hovnanian Enterprises, Inc., 7.250%		7,526,000

		Machinery — 0.1%
	229,491	United Rentals Trust I, 6.500%		10,786,077

		Oil, Gas & Consumable Fuels — 0.2%
	52,020	Chesapeake Energy Corp., 4.500%		5,045,940
	218,997	El Paso Energy Capital Trust I, 4.750%		9,690,617
	99,800	SandRidge Energy, Inc., 8.500%		18,045,836

				32,782,393

See accompanying notes to financial statements.

45 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)


Shares		Description	Value (†)

		REITs – Healthcare — 0.0%
	116,700	Health Care REIT, Inc., Series I, 6.500%	$	6,080,070

		Semiconductors & Semiconductor Equipment — 0.3%
	39,920	Lucent Technologies Capital Trust I, 7.750%		39,121,600

		Total Convertible Preferred Stocks (Identified Cost $266,120,110)		293,669,245

	Non-Convertible Preferred Stocks — 0.8%
		Banking — 0.3%
	36,916	Ally Financial, Inc., Series G, 7.000%, 144A		34,350,338

		Diversified Financial Services — 0.2%
	35,000	Bank of America Corp., 6.375%		783,650
	847,800	Citigroup Capital XIII, (fixed rate to 10/30/2015, variable rate thereafter), 7.875%		23,229,720

				24,013,370

		Electric Utilities — 0.0%
	393	Entergy New Orleans, Inc., 4.750%		31,882

		Household Durables — 0.0%
	116,411	Hovnanian Enterprises, Inc., 7.625%(e)		785,774

		REITs – Office Property — 0.0%
	1,596	Highwoods Properties, Inc., Series A, 8.625%		1,700,738

		REITs – Warehouse/Industrials — 0.0%
	116,192	ProLogis, Series C, 8.540%		6,274,368

		Software — 0.2%
	26,000	Falcons Funding Trust I, (Step to 10.875% on 3/15/2015, variable rate after 3/15/2020), 8.875%, 144A(f)		28,088,125

		Thrifts & Mortgage Finance — 0.1%
	389,800	Countrywide Capital IV, 6.750%		9,655,346

		Total Non-Convertible Preferred Stocks (Identified Cost $70,811,537)		104,899,941

		Total Preferred Stocks (Identified Cost $336,931,647)		398,569,186

	Closed End Investment Companies — 0.2%
	147,147	Dreyfus High Yield Strategies Fund		687,176
	60,769	DWS High Income Trust		616,198
	860,000	Highland Credit Strategies Fund		6,458,600
	104,115	Morgan Stanley Emerging Markets Debt Fund, Inc.		1,058,850
	2,042,648	Western Asset High Income Opportunity Fund, Inc.		12,991,241
	1,076,501	Western Asset Managed High Income Fund, Inc.		6,868,076

		Total Closed End Investment Companies (Identified Cost $34,288,753)		28,680,141


Principal Amount (‡)		Description	Value (†)

	Short-Term Investments — 1.4%
$	187,522,869	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011 at 0.000% to be repurchased at $187,522,869 on 4/01/2011 collateralized by $193,180,000 Federal Home Loan Mortgage Corp., 3.500% due 8/18/2020 valued at $187,143,125; $4,060,000 Federal Home Loan Mortgage Corp., 3.310% due 11/10/2020 valued at $3,862,075; $265,000 Federal National Mortgage Association, 2.000% due 1/09/2012 valued at $269,638 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $187,522,869)	$	187,522,869


		Total Investments — 98.6% (Identified Cost $12,108,305,516)(a)		13,360,990,169
		Other assets less liabilities — 1.4%		185,283,593

		Net Assets — 100.0%	$	13,546,273,762


	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 25.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):
		At March 31, 2011, the net unrealized appreciation on investments based on a cost of $12,143,596,981 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	$	1,586,620,448
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(369,227,260	)

		Net unrealized appreciation	$	1,217,393,188


	(b)	Variable rate security. Rate as of March 31, 2011 is disclosed.
	(c)	Illiquid security. At March 31, 2011, the value of these securities amounted to $366,879,067 or 2.7% of net assets.
	(d)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
	(e)	Non-income producing security.
	(f)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
	(g)	Variable rate security. Rate shown represents the weighted average rate at March 31, 2011.
	(h)	All or a portion of interest payment is paid-in-kind.
	(i)	Fair valued security by the Fund’s investment adviser. At March 31, 2011 the value of this security amounted to $4,847,625 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 March 31, 2011, the value of Rule 144A holdings amounted to $1,439,109,499 or 10.6% of net assets.

See accompanying notes to financial statements.

| 46

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Strategic Income Fund – (continued)



	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.

	ABS			Asset-Backed Securities
	AGMC			Assured Guaranty Municipal Corp.
	AMBAC			American Municipal Bond Assurance Corp.
	EMTN			Euro Medium Term Note
	GMTN			Global Medium Term Note
	MBIA			Municipal Bond Investors Assurance Corp.
	MTN			Medium Term Note
	REITs			Real Estate Investment Trusts

	AUD			Australian Dollar
	BRL			Brazilian Real
	CAD			Canadian Dollar
	EUR			Euro
	GBP			British Pound
	IDR			Indonesian Rupiah
	ISK			Icelandic Krona
	KRW			South Korean Won
	MXN			Mexican Peso
	NOK			Norwegian Krone
	NZD			New Zealand Dollar
	SGD			Singapore Dollar

Industry Summary at March 31, 2011 (Unaudited)


Treasuries	14.3	%
Non-Captive Diversified	8.7
Banking	6.5
Non-Captive Consumer	5.1
Technology	5.0
Automotive	4.5
Wirelines	4.5
Sovereigns	3.9
Pharmaceuticals	3.3
Electric	3.3
Healthcare	3.0
Pipelines	2.5
Airlines	2.3
Semiconductors & Semiconductor Equipment	2.1
Other Investments, less than 2% each	28.2
Short-Term Investments	1.4

Total Investments	98.6
Other assets less liabilities	1.4

Net Assets	100.0	%

Currency Exposure at March 31, 2011 (Unaudited)


United States Dollar	71.3	%
Canadian Dollar	6.8
New Zealand Dollar	4.0
Norwegian Krone	3.1
Euro	3.0
Australian Dollar	2.5
Other, less than 2% each	7.9

Total Investments	98.6
Other assets less liabilities	1.4

Net Assets	100.0	%

See accompanying notes to financial statements.

47 |

Statements of Assets and Liabilities

March 31, 2011 (Unaudited)


	Core Plus Bond Fund			High Income Fund			International Bond Fund			Limited Term Government and Agency Fund			Strategic Income Fund
ASSETS
Investments at cost	$	371,578,628		$	149,070,624		$	20,838,853		$	394,248,812		$	12,108,305,516
Net unrealized appreciation		15,000,357			16,615,512			1,209,739			9,334,784			1,252,684,653

Investments at value		386,578,985			165,686,136			22,048,592			403,583,596			13,360,990,169
Cash		—			—			—			—			5,104,220
Due from custodian (Note 2)		—			—			—			—			3,175,275
Foreign currency at value (identified cost $0, $6,566, $289,957, $0 and $14,847,640)		—			5,184			297,383			—			14,611,313
Receivable for Fund shares sold		2,153,115			4,140,879			8,384			3,336,219			30,909,051
Receivable from investment adviser (Note 6)		—			—			1,825			—			—
Receivable for securities sold		1,446,689			130,611			247,338			—			6,446,644
Dividends and interest receivable		4,060,574			2,147,093			333,409			2,184,781			200,270,912
Unrealized appreciation on forward foreign currency contracts (Note 2)		—			—			53,335			—			—
Tax reclaims receivable		7,909			26,428			4,688			—			1,305,090

TOTAL ASSETS		394,247,272			172,136,331			22,994,954			409,104,596			13,622,812,674

LIABILITIES
Payable for securities purchased		10,005,905			1,619,097			—			—			38,309,756
Payable for delayed delivery securities purchased (Note 2)		3,600,399			—			—			—			—
Payable for Fund shares redeemed		977,283			136,439			259,120			864,441			26,030,350
Payable to custodian bank		—			—			163,544			—			—
Unrealized depreciation on forward foreign currency contracts (Note 2)		23,536			46,043			15,791			—			—
Foreign taxes payable (Note 2)		—			—			—			—			242,694
Due to broker (Note 2)		—			—			—			—			3,175,275
Dividends payable		—			—			—			240,999			—
Management fees payable (Note 6)		131,151			101,587			—			149,317			6,381,663
Deferred Trustees’ fees (Note 6)		240,739			99,217			33,335			227,001			643,381
Administrative fees payable (Note 6)		15,163			6,773			938			17,211			539,048
Other accounts payable and accrued expenses		45,276			60,439			25,994			67,598			1,216,745

TOTAL LIABILITIES		15,039,452			2,069,595			498,722			1,566,567			76,538,912

NET ASSETS	$	379,207,820		$	170,066,736		$	22,496,232		$	407,538,029		$	13,546,273,762

NET ASSETS CONSIST OF:
Paid-in capital	$	359,250,665		$	148,810,161		$	20,541,948		$	401,601,282		$	12,914,822,258
Distributions in excess of net investment income		(1,490,132	)		(1,015,214	)		(442,061	)		(1,628,933	)		(32,849,653	)
Accumulated net realized gain (loss) on investments, swap agreements and foreign currency transactions		6,470,466			5,694,097			1,129,365			(1,769,104	)		(590,304,438	)
Net unrealized appreciation on investments and foreign currency translations		14,976,821			16,577,692			1,266,980			9,334,784			1,254,605,595

NET ASSETS	$	379,207,820		$	170,066,736		$	22,496,232		$	407,538,029		$	13,546,273,762

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	200,477,747		$	75,740,222		$	14,791,776		$	242,981,202		$	5,705,330,438

Shares of beneficial interest		15,953,782			14,807,449			1,346,127			20,489,469			377,418,914

Net asset value and redemption price per share	$	12.57		$	5.12		$	10.99		$	11.86		$	15.12

Offering price per share (100/[100 – maximum sales charge of net asset value) (Note 1)	$	13.16		$	5.36		$	11.51		$	12.23		$	15.83

Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	3,531,789		$	1,028,457		$	—		$	12,079,142		$	128,349,613

Shares of beneficial interest		280,073			200,606			—			1,019,688			8,437,774

Net asset value and offering price per share	$	12.61		$	5.13		$	—		$	11.85		$	15.21

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	117,637,305		$	19,976,155		$	5,810,336		$	66,163,372		$	5,037,580,759

Shares of beneficial interest		9,355,834			3,899,075			531,782			5,574,390			331,452,451

Net asset value and offering price per share	$	12.57		$	5.12		$	10.93		$	11.87		$	15.20

Class Y shares:
Net assets	$	57,560,979		$	73,321,902		$	1,894,120		$	86,314,313		$	2,659,601,209

Shares of beneficial interest		4,553,931			14,348,200			172,427			7,255,754			176,063,241

Net asset value, offering and redemption price per share	$	12.64		$	5.11		$	10.99		$	11.90		$	15.11

Admin Class shares:
Net assets	$	—		$	—		$	—		$	—		$	15,411,743

Shares of beneficial interest		—			—			—			—			1,021,570

Net asset value, offering and redemption price per share	$	—		$	—		$	—		$	—		$	15.09

See accompanying notes to financial statements.

| 48

Statements of Operations

For the Six Months Ended March 31, 2011 (Unaudited)


	Core Plus Bond Fund			High Income Fund			International Bond Fund			Limited Term Government and Agency Fund			Strategic Income Fund
INVESTMENT INCOME
Interest	$	9,716,424		$	5,644,111		$	464,668		$	4,163,078		$	385,292,961
Dividends		19,855			181,346			—			—			28,086,015
Less net foreign taxes withheld		(5,360	)		(10,159	)		—			—			(251,701	)

		9,730,919			5,815,298			464,668			4,163,078			413,127,275

Expenses
Management fees (Note 6)	��	792,886			490,547			81,464			877,271			37,538,551
Service and distribution fees (Note 6)		876,798			202,996			52,539			643,982			33,197,892
Administrative fees (Note 6)		91,030			38,198			6,345			87,898			3,142,417
Trustees’ fees and expenses (Note 6)		21,236			14,052			10,617			20,288			140,725
Transfer agent fees and expenses (Note 6)		175,883			80,274			7,700			132,118			4,816,054
Audit and tax services fees		24,095			23,810			24,094			24,158			32,474
Custodian fees and expenses		16,294			16,767			21,561			14,149			350,910
Legal fees		11,813			1,876			356			4,187			159,529
Registration fees		39,871			37,237			26,542			52,265			195,407
Shareholder reporting expenses		30,933			12,149			2,182			12,123			510,124
Miscellaneous expenses		8,862			5,583			3,639			8,126			198,544

Total expenses		2,089,701			923,489			237,039			1,876,565			80,282,627

Fee/expense recovery (Note 6)		—			15,327			—			—			—
Less waiver and/or expense reimbursement (Note 6)		—			—			(69,093	)		(103,662	)		—

Net expenses		2,089,701			938,816			167,946			1,772,903			80,282,627

Net investment income		7,641,218			4,876,482			296,722			2,390,175			332,844,648

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		7,688,526			5,792,531			1,098,082			2,558,256			150,989,677
Foreign currency transactions		(11,073	)		(41,721	)		222,938			—			3,160,026
Net change in unrealized appreciation (depreciation) on:
Investments		(11,654,794	)		2,023,764			(1,082,117	)		(3,044,169	)		268,899,833
Foreign currency translations		(36,443	)		(42,843	)		(108,876	)		—			516,042

Net realized and unrealized gain (loss) on investments and foreign currency transactions		(4,013,784	)		7,731,731			130,027			(485,913	)		423,565,578

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,627,434		$	12,608,213		$	426,749		$	1,904,262		$	756,410,226

See accompanying notes to financial statements.

49 |

Statements of Changes in Net Assets


	Core Plus Bond Fund						High Income Fund						International Bond Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
FROM OPERATIONS:
Net investment income	$	7,641,218		$	13,660,599		$	4,876,482		$	10,726,616		$	296,722		$	647,223
Net realized gain on investments, swap agreements and foreign currency transactions		7,677,453			11,688,056			5,750,810			15,069,056			1,321,020			81,150
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(11,691,237	)		13,900,860			1,980,921			(11,929	)		(1,190,993	)		1,114,447

Net increase in net assets resulting from operations		3,627,434			39,249,515			12,608,213			25,783,743			426,749			1,842,820

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(5,212,653	)		(8,308,883	)		(2,798,103	)		(4,606,994	)		(395,800	)		(356,057	)
Class B		(83,338	)		(232,826	)		(36,284	)		(84,337	)		—			—
Class C		(2,564,810	)		(4,369,129	)		(693,198	)		(1,149,766	)		(116,316	)		(148,175	)
Class Y		(1,519,918	)		(2,762,927	)		(2,542,151	)		(5,066,381	)		(63,287	)		(329,863	)
Admin Class		—			—			—			—			—			—
Net realized capital gains
Class A		—			—			—			—			(229,358	)		(81,934	)
Class B		—			—			—			—			—			—
Class C		—			—			—			—			(79,673	)		(46,824	)
Class Y		—			—			—			—			(24,156	)		(94,216	)

Total distributions		(9,380,719	)		(15,673,765	)		(6,069,736	)		(10,907,478	)		(908,590	)		(1,057,069	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		(26,696,326	)		128,799,979			5,109,916			(41,510,546	)		(10,832,171	)		8,541,560

Net increase (decrease) in net assets		(32,449,611	)		152,375,729			11,648,393			(26,634,281	)		(11,314,012	)		9,327,311
NET ASSETS
Beginning of the period		411,657,431			259,281,702			158,418,343			185,052,624			33,810,244			24,482,933

End of the period	$	379,207,820		$	411,657,431		$	170,066,736		$	158,418,343		$	22,496,232		$	33,810,244

UNDISTRIBUTED NET INVESTMENT INCOME (DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME)	$	(1,490,132	)	$	249,369		$	(1,015,214	)	$	178,040		$	(442,061	)	$	(163,380	)

See accompanying notes to financial statements.

| 50

Statements of Changes in Net Assets (continued)


	Limited Term Government and Agency Fund						Strategic Income Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
FROM OPERATIONS:
Net investment income	$	2,390,175		$	4,207,760		$	332,844,648		$	708,256,908
Net realized gain (loss) on investments and foreign currency transactions		2,558,256			5,299,478			154,149,703			(74,940,768	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(3,044,169	)		5,267,995			269,415,875			1,297,093,620

Net increase in net assets resulting from operations		1,904,262			14,775,233			756,410,226			1,930,409,760

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(2,169,101	)		(3,182,978	)		(164,140,619	)		(325,626,381	)
Class B		(41,801	)		(65,117	)		(3,292,160	)		(7,060,015	)
Class C		(514,659	)		(971,553	)		(126,576,599	)		(249,098,299	)
Class Y		(1,166,200	)		(1,424,364	)		(76,269,086	)		(134,204,230	)
Admin Class		—			—			(258,924	)		(41,765	)
Net realized capital gains
Class A		(1,500,749	)		—			—			—
Class B		(29,955	)		—			—			—
Class C		(583,534	)		—			—			—
Class Y		(770,404	)		—			—			—

Total distributions		(6,776,403	)		(5,644,012	)		(370,537,388	)		(716,030,690	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		72,265,821			128,975,189			(406,817,470	)		(292,510,626	)

Net increase (decrease) in net assets		67,393,680			138,106,410			(20,944,632	)		921,868,444
NET ASSETS
Beginning of the period		340,144,349			202,037,939			13,567,218,394			12,645,349,950

End of the period	$	407,538,029		$	340,144,349		$	13,546,273,762		$	13,567,218,394

UNDISTRIBUTED NET INVESTMENT INCOME (DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME)	$	(1,628,933	)	$	(127,347	)	$	(32,849,653	)	$	4,843,087

See accompanying notes to financial statements.

51 |

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| 52

Financial Highlights

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains		Total distributions			Redemption fees (b)(c)

CORE PLUS BOND FUND
Class A
3/31/2011(h)	$	12.75	$	0.26	$	(0.12	)	$	0.14		$	(0.32	)	$	—	$	(0.32	)	$	—
9/30/2010		11.91		0.54		0.91			1.45			(0.61	)		—		(0.61	)		—
9/30/2009		10.54		0.59		1.44			2.03			(0.66	)		—		(0.66	)		—
9/30/2008		11.31		0.55		(0.71	)		(0.16	)		(0.61	)		—		(0.61	)		0.00
9/30/2007		11.23		0.50		0.14			0.64			(0.56	)		—		(0.56	)		0.00
9/30/2006		11.41		0.50		(0.07	)		0.43			(0.61	)		—		(0.61	)		0.00
Class B
3/31/2011(h)		12.79		0.21		(0.12	)		0.09			(0.27	)		—		(0.27	)		—
9/30/2010		11.95		0.44		0.92			1.36			(0.52	)		—		(0.52	)		—
9/30/2009		10.57		0.50		1.45			1.95			(0.57	)		—		(0.57	)		—
9/30/2008		11.31		0.44		(0.67	)		(0.23	)		(0.51	)		—		(0.51	)		0.00
9/30/2007		11.24		0.41		0.13			0.54			(0.47	)		—		(0.47	)		0.00
9/30/2006		11.41		0.41		(0.05	)		0.36			(0.53	)		—		(0.53	)		0.00
Class C
3/31/2011(h)		12.76		0.21		(0.13	)		0.08			(0.27	)		—		(0.27	)		—
9/30/2010		11.92		0.45		0.91			1.36			(0.52	)		—		(0.52	)		—
9/30/2009		10.55		0.51		1.44			1.95			(0.58	)		—		(0.58	)		—
9/30/2008		11.32		0.47		(0.71	)		(0.24	)		(0.53	)		—		(0.53	)		0.00
9/30/2007		11.25		0.41		0.13			0.54			(0.47	)		—		(0.47	)		0.00
9/30/2006		11.42		0.41		(0.05	)		0.36			(0.53	)		—		(0.53	)		0.00
Class Y
3/31/2011(h)		12.82		0.28		(0.13	)		0.15			(0.33	)		—		(0.33	)		—
9/30/2010		11.97		0.57		0.92			1.49			(0.64	)		—		(0.64	)		—
9/30/2009		10.60		0.62		1.44			2.06			(0.69	)		—		(0.69	)		—
9/30/2008		11.36		0.58		(0.70	)		(0.12	)		(0.64	)		—		(0.64	)		0.00
9/30/2007		11.29		0.54		0.13			0.67			(0.60	)		—		(0.60	)		0.00
9/30/2006		11.46		0.51		(0.04	)		0.47			(0.64	)		—		(0.64	)		0.00

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

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

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

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

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

See accompanying notes to financial statements.

53 |



							Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (d)(e)			Net assets, end of the period (000’s)		Net expenses (%) (f)(g)			Gross expenses (%) (f)			Net investment income (%) (f)		Portfolio turnover rate (%)



$	12.57		1.11		$	200,478		0.87			0.87			4.12		62
	12.75		12.55			214,723		0.90			0.90			4.41		87
	11.91		20.07			140,779		0.90			0.97			5.43		102
	10.54		(1.61	)		115,873		0.93			1.04			4.86		82
	11.31		5.70			105,780		1.04			1.09			4.41		69
	11.23		4.03			91,464		1.05			1.08			4.46		91

	12.61		0.72			3,532		1.62			1.62			3.36		62
	12.79		11.64			4,490		1.65			1.65			3.64		87
	11.95		19.19			7,028		1.65			1.72			4.66		102
	10.57		(2.21	)		10,481		1.70			1.80			3.92		82
	11.31		4.90			87,101		1.79			1.85			3.64		69
	11.24		3.26			109,782		1.80			1.83			3.72		91

	12.57		0.65			117,637		1.62			1.62			3.38		62
	12.76		11.71			123,123		1.65			1.65			3.66		87
	11.92		19.20			77,081		1.65			1.72			4.69		102
	10.55		(2.32	)		26,698		1.68			1.79			4.17		82
	11.32		4.91			12,690		1.78			1.82			3.66		69
	11.25		3.26			6,983		1.80			1.82			3.63		91

	12.64		1.23			57,561		0.62			0.62			4.37		62
	12.82		12.85			69,322		0.65			0.65			4.66		87
	11.97		20.37			34,394		0.65			0.68			5.67		102
	10.60		(1.36	)		20,407		0.68			0.75			5.14		82
	11.36		6.06			15,946		0.70			0.75			4.75		69
	11.29		4.28			11,986		0.80	(i)		0.80	(i)		4.58		91

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

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

(h)	For the six months ended March 31, 2011 (Unaudited).

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

| 54

Financial Highlights (continued)

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions			Redemption fees (b)

HIGH INCOME FUND
Class A
3/31/2011(g)	$	4.91	$	0.15	$	0.25		$	0.40		$	(0.19	)	$	—		$	(0.19	)	$	—
9/30/2010		4.49		0.32		0.42			0.74			(0.32	)		—			(0.32	)		—
9/30/2009		4.24		0.34		0.24			0.58			(0.33	)		—			(0.33	)		0.00	(i)
9/30/2008		5.12		0.34		(0.87	)		(0.53	)		(0.35	)		—			(0.35	)		0.00
9/30/2007		5.09		0.33		0.08			0.41			(0.38	)		—			(0.38	)		0.00
9/30/2006		4.98		0.34		0.11			0.45			(0.34	)		—			(0.34	)		0.00
Class B
3/31/2011(g)		4.92		0.13		0.25			0.38			(0.17	)		—			(0.17	)		—
9/30/2010		4.50		0.28		0.42			0.70			(0.28	)		—			(0.28	)		—
9/30/2009		4.25		0.31		0.25			0.56			(0.31	)		—			(0.31	)		0.00	(i)
9/30/2008		5.13		0.30		(0.87	)		(0.57	)		(0.31	)		—			(0.31	)		0.00
9/30/2007		5.10		0.29		0.07			0.36			(0.33	)		—			(0.33	)		0.00
9/30/2006		4.98		0.30		0.12			0.42			(0.30	)		—			(0.30	)		0.00
Class C
3/31/2011(g)		4.92		0.13		0.24			0.37			(0.17	)		—			(0.17	)		—
9/30/2010		4.50		0.28		0.43			0.71			(0.29	)		—			(0.29	)		—
9/30/2009		4.24		0.31		0.26			0.57			(0.31	)		—			(0.31	)		0.00	(i)
9/30/2008		5.12		0.31		(0.87	)		(0.56	)		(0.32	)		—			(0.32	)		0.00
9/30/2007		5.09		0.29		0.07			0.36			(0.33	)		—			(0.33	)		0.00
9/30/2006		4.98		0.30		0.11			0.41			(0.30	)		—			(0.30	)		0.00
Class Y
3/31/2011(g)		4.90		0.16		0.24			0.40			(0.19	)		—			(0.19	)		—
9/30/2010		4.49		0.33		0.41			0.74			(0.33	)		—			(0.33	)		—
9/30/2009		4.24		0.34		0.25			0.59			(0.34	)		—			(0.34	)		0.00	(i)
9/30/2008(j)		4.87		0.22		(0.65	)		(0.43	)		(0.21	)		—			(0.21	)		0.01
INTERNATIONAL BOND FUND
Class A
3/31/2011(g)	$	11.17	$	0.13	$	0.08		$	0.21		$	(0.25	)	$	(0.14	)	$	(0.39	)	$	—
9/30/2010		10.84		0.22		0.48			0.70			(0.29	)		(0.08	)		(0.37	)		—
9/30/2009		9.19		0.32		1.53			1.85			(0.20	)		—			(0.20	)		—
9/30/2008(k)		10.00		0.17		(0.79	)		(0.62	)		(0.19	)		—			(0.19	)		0.00	(l)
Class C
3/31/2011(g)		11.11		0.09		0.07			0.16			(0.20	)		(0.14	)		(0.34	)		—
9/30/2010		10.82		0.15		0.46			0.61			(0.24	)		(0.08	)		(0.32	)		—
9/30/2009		9.18		0.24		1.53			1.77			(0.13	)		—			(0.13	)		—
9/30/2008(k)		10.00		0.13		(0.81	)		(0.68	)		(0.15	)		—			(0.15	)		0.01	(l)
Class Y
3/31/2011(g)		11.16		0.14		0.09			0.23			(0.26	)		(0.14	)		(0.40	)		—
9/30/2010		10.82		0.25		0.47			0.72			(0.30	)		(0.08	)		(0.38	)		—
9/30/2009		9.18		0.33		1.53			1.86			(0.22	)		—			(0.22	)		—
9/30/2008(k)		10.00		0.18		(0.81	)		(0.63	)		(0.20	)		—			(0.20	)		0.01	(l)

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

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

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

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

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

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

See accompanying notes to financial statements.

55 |



							Ratios to Average Net Assets:

Net asset value, end of the period		Total return (%)(c)(d)			Net assets, end of the period (000’s)		Net expenses (%)(e)(f)			Gross expenses (%)(e)			Net investment income (%)(e)		Portfolio turnover rate (%)



$	5.12		8.23		$	75,740		1.15	(h)		1.15	(h)		5.96		31
	4.91		17.05			68,011		1.15			1.20			6.72		56
	4.49		15.97			59,944		1.15			1.28			8.82		30
	4.24		(10.98	)		38,577		1.15			1.40			7.01		27
	5.12		8.10			32,603		1.18			1.43			6.40		41
	5.09		9.39			29,069		1.31			1.48			6.70		41

	5.13		7.80			1,028		1.90	(h)		1.90	(h)		5.21		31
	4.92		16.13			1,209		1.90			1.94			6.00		56
	4.50		15.06			1,569		1.90			2.06			8.32		30
	4.25		(11.64	)		2,267		1.90			2.15			6.15		27
	5.13		7.21			4,201		1.94			2.18			5.63		41
	5.10		8.79			7,283		2.08			2.25			6.00		41

	5.12		7.61			19,976		1.90	(h)		1.90	(h)		5.21		31
	4.92		16.15			19,312		1.90			1.95			5.97		56
	4.50		15.37			17,827		1.90			2.03			8.09		30
	4.24		(11.62	)		9,945		1.90			2.15			6.32		27
	5.12		7.22			5,275		1.93			2.17			5.63		41
	5.09		8.58			3,457		2.07			2.23			5.96		41

	5.11		8.38			73,322		0.90	(h)		0.90	(h)		6.21		31
	4.90		17.11			69,887		0.90			0.93			7.02		56
	4.49		16.29			105,713		0.90			0.92			8.32		30
	4.24		(9.10	)		3,833		0.90			1.15			8.03		27


$	10.99		1.98		$	14,792		1.10			1.62			2.33		48
	11.17		6.66			18,758		1.10			1.49			2.14		128
	10.84		20.41			8,479		1.10			2.11			3.29		91
	9.19		(6.37	)		1,953		1.10			2.95			2.66		60

	10.93		1.61			5,810		1.85			2.38			1.59		48
	11.11		5.86			6,145		1.85			2.24			1.40		128
	10.82		19.58			2,955		1.85			2.93			2.56		91
	9.18		(6.95	)		683		1.85			3.70			1.92		60

	10.99		2.20			1,894		0.85			1.26			2.51		48
	11.16		6.92			8,908		0.85			1.23			2.41		128
	10.82		20.73			13,049		0.85			1.92			3.53		91
	9.18		(6.39	)		9,981		0.85			2.48			2.74		60

(g)	For the six months ended March 31, 2011 (Unaudited).

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

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

(j)	From commencement of Class operations on February 29, 2008 through September 30, 2008.

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

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

| 56

Financial Highlights (continued)

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:							Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations		Dividends from net investment income			Distributions from net realized capital gains			Total distributions

LIMITED TERM GOVERNMENTAND AGENCY FUND
Class A
3/31/2011(f)	$	12.02	$	0.08	$	(0.02	)	$	0.06	$	(0.13	)	$	(0.09	)	$	(0.22	)
9/30/2010		11.60		0.20		0.49			0.69		(0.27	)		—			(0.27	)
9/30/2009		10.98		0.35		0.63			0.98		(0.36	)		—			(0.36	)
9/30/2008		11.00		0.45		0.02			0.47		(0.49	)		—			(0.49	)
9/30/2007		11.00		0.45		0.03			0.48		(0.48	)		—			(0.48	)
9/30/2006		11.09		0.39		(0.05	)		0.34		(0.43	)		—			(0.43	)
Class B
3/31/2011(f)		12.00		0.04		(0.01	)		0.03		(0.09	)		(0.09	)		(0.18	)
9/30/2010		11.59		0.12		0.47			0.59		(0.18	)		—			(0.18	)
9/30/2009		10.97		0.26		0.63			0.89		(0.27	)		—			(0.27	)
9/30/2008		10.99		0.36		0.02			0.38		(0.40	)		—			(0.40	)
9/30/2007		10.98		0.37		0.03			0.40		(0.39	)		—			(0.39	)
9/30/2006		11.07		0.31		(0.05	)		0.26		(0.35	)		—			(0.35	)
Class C
3/31/2011(f)		12.03		0.04		(0.02	)		0.02		(0.09	)		(0.09	)		(0.18	)
9/30/2010		11.61		0.12		0.48			0.60		(0.18	)		—			(0.18	)
9/30/2009		10.99		0.26		0.63			0.89		(0.27	)		—			(0.27	)
9/30/2008		11.00		0.36		0.03			0.39		(0.40	)		—			(0.40	)
9/30/2007		10.99		0.37		0.03			0.40		(0.39	)		—			(0.39	)
9/30/2006		11.08		0.31		(0.05	)		0.26		(0.35	)		—			(0.35	)
Class Y
3/31/2011(f)		12.05		0.10		(0.01	)		0.09		(0.15	)		(0.09	)		(0.24	)
9/30/2010		11.64		0.23		0.48			0.71		(0.30	)		—			(0.30	)
9/30/2009		11.01		0.39		0.63			1.02		(0.39	)		—			(0.39	)
9/30/2008		11.03		0.47		0.02			0.49		(0.51	)		—			(0.51	)
9/30/2007		11.03		0.49		0.03			0.52		(0.52	)		—			(0.52	)
9/30/2006		11.13		0.43		(0.06	)		0.37		(0.47	)		—			(0.47	)

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

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

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

See accompanying notes to financial statements.

57 |



							Ratios to Average Net Assets:

Net asset value, end of the period		Total return (%) (b)(c)		Net assets, end of the period (000’s)			Net expenses (%) (d)(e)		Gross expenses (%) (d)		Net investment income (%) (d)		Portfolio turnover rate (%)



$	11.86		0.51	$	242,981			0.85		0.90		1.37		45
	12.02		6.03		164,265			0.89		0.97		1.73		89
	11.60		9.05		118,619			0.90		0.99		3.10		77
	10.98		4.29		105,047			0.92		1.07		4.04		52
	11.00		4.46		108,536			0.99		1.10		4.13		45
	11.00		3.20		114,180			1.04		1.09		3.57		50

	11.85		0.22		12,079			1.60		1.66		0.66		45
	12.00		5.16		4,049			1.64		1.72		1.00		89
	11.59		8.24		4,442			1.65		1.74		2.32		77
	10.97		3.52		4,532			1.67		1.82		3.29		52
	10.99		3.72		6,787			1.74		1.85		3.37		45
	10.98		2.36		9,952			1.79		1.84		2.79		50

	11.87		0.14		66,163			1.60		1.66		0.61		45
	12.03		5.24		75,984	��		1.64		1.72		0.98		89
	11.61		8.24		50,973			1.65		1.74		2.32		77
	10.99		3.62		22,711			1.66		1.83		3.29		52
	11.00		3.62		5,261			1.74		1.85		3.38		45
	10.99		2.46		4,230			1.79		1.84		2.81		50

	11.90		0.72		86,314			0.60		0.65		1.60		45
	12.05		6.20		95,847			0.63		0.71		1.94		89
	11.64		9.40		28,004			0.65		0.72		3.42		77
	11.01		4.55		6,577			0.67		0.72		4.28		52
	11.03		4.79		4,201			0.71		0.75		4.43		45
	11.03		3.43		2,461			0.74		0.74		3.89		50

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

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

(f)	For the six months ended March 31, 2011 (Unaudited).

| 58

Financial Highlights (continued)

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions			Redemption fees (b)(c)
STRATEGIC INCOME FUND
Class A
3/31/2011(h)	$	14.69	$	0.39	$	0.47		$	0.86		$	(0.43	)	$	—		$	(0.43	)	$	—
9/30/2010		13.39		0.80		1.31			2.11			(0.81	)		—			(0.81	)		—
9/30/2009		12.10		0.87		1.36			2.23			(0.86	)		(0.08	)		(0.94	)		—
9/30/2008		15.18		0.96		(3.02	)		(2.06	)		(1.01	)		(0.01	)		(1.02	)		0.00
9/30/2007		14.60		0.80		0.60			1.40			(0.82	)		—			(0.82	)		0.00
9/30/2006		14.17		0.71		0.53			1.24			(0.81	)		—			(0.81	)		0.00
Class B
3/31/2011(h)		14.78		0.33		0.47			0.80			(0.37	)		—			(0.37	)		—
9/30/2010		13.46		0.69		1.33			2.02			(0.70	)		—			(0.70	)		—
9/30/2009		12.16		0.79		1.36			2.15			(0.77	)		(0.08	)		(0.85	)		—
9/30/2008		15.25		0.85		(3.04	)		(2.19	)		(0.89	)		(0.01	)		(0.90	)		0.00
9/30/2007		14.66		0.69		0.60			1.29			(0.70	)		—			(0.70	)		0.00
9/30/2006		14.22		0.61		0.52			1.13			(0.69	)		—			(0.69	)		0.00
Class C
3/31/2011(h)		14.77		0.33		0.47			0.80			(0.37	)		—			(0.37	)		—
9/30/2010		13.45		0.69		1.33			2.02			(0.70	)		—			(0.70	)		—
9/30/2009		12.15		0.79		1.37			2.16			(0.78	)		(0.08	)		(0.86	)		—
9/30/2008		15.24		0.85		(3.03	)		(2.18	)		(0.90	)		(0.01	)		(0.91	)		0.00
9/30/2007		14.65		0.69		0.60			1.29			(0.70	)		—			(0.70	)		0.00
9/30/2006		14.22		0.61		0.51			1.12			(0.69	)		—			(0.69	)		0.00
Class Y
3/31/2011(h)		14.68		0.40		0.48			0.88			(0.45	)		—			(0.45	)		—
9/30/2010		13.38		0.83		1.31			2.14			(0.84	)		—			(0.84	)		—
9/30/2009		12.09		0.90		1.36			2.26			(0.89	)		(0.08	)		(0.97	)		—
9/30/2008		15.17		1.00		(3.03	)		(2.03	)		(1.04	)		(0.01	)		(1.05	)		0.00
9/30/2007		14.59		0.85		0.59			1.44			(0.86	)		—			(0.86	)		0.00
9/30/2006		14.17		0.76		0.51			1.27			(0.85	)		—			(0.85	)		0.00
Admin Class
3/31/2011(h)		14.66		0.38		0.47			0.85			(0.42	)		—			(0.42	)		—
9/30/2010*		13.87		0.52		0.79			1.31			(0.52	)		—			(0.52	)		—

*	From commencement of Class operations on February 1, 2010 through September 30, 2010.

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

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

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

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

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

59 |



							Ratios to Average Net Assets:

Net asset value, end of the period		Total return (%) (d)(e)			Net assets, end of the period (000’s)		Net expenses (%) (f)(g)		Gross expenses (%) (f)		Net investment income (%) (f)		Portfolio turnover rate (%)



$	15.12		5.95		$	5,705,330		0.95		0.95		5.19		10
	14.69		16.20			5,758,070		0.96		0.96		5.67		27
	13.39		20.56			5,544,029		0.99		0.99		7.74		39
	12.10		(14.54	)		5,551,066		0.97		0.98		6.59		24
	15.18		9.90			5,749,315		1.00		1.00		5.39		22
	14.60		9.04			2,782,887		1.05		1.05		5.01		21

	15.21		5.51			128,350		1.70		1.70		4.44		10
	14.78		15.39			137,268		1.71		1.71		4.92		27
	13.46		19.62			148,887		1.74		1.74		7.02		39
	12.16		(15.19	)		161,751		1.72		1.73		5.78		24
	15.25		9.08			233,418		1.76		1.76		4.61		22
	14.66		8.22			179,927		1.79		1.79		4.26		21

	15.20		5.52			5,037,581		1.70		1.70		4.44		10
	14.77		15.40			5,146,164		1.71		1.71		4.92		27
	13.45		19.66			4,894,546		1.74		1.74		6.95		39
	12.15		(15.19	)		3,984,204		1.72		1.73		5.85		24
	15.24		9.08			3,843,823		1.75		1.75		4.63		22
	14.65		8.14			1,812,278		1.79		1.79		4.24		21

	15.11		6.08			2,659,601		0.70		0.70		5.45		10
	14.68		16.50			2,521,337		0.71		0.71		5.92		27
	13.38		20.91			2,057,888		0.72		0.72		7.76		39
	12.09		(14.34	)		783,058		0.72		0.72		6.88		24
	15.17		10.22			638,868		0.74		0.74		5.67		22
	14.59		9.28			271,065		0.78		0.78		5.30		21

	15.09		5.85			15,412		1.21		1.21		5.08		10
	14.66		9.61			4,379		1.24		1.24		5.52		27

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

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

(h)	For the six months ended March 31, 2011 (Unaudited).

| 60

Notes to Financial Statements

March 31, 2011 (Unaudited)

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

Natixis Funds Trust I:

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

Loomis Sayles Funds II:

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

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

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

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

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

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

Most expenses of the Trusts can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the Funds in the Trusts. Expenses of a Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (including the Rule 12b-1 service and distribution fees). In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of a Fund if the Fund were liquidated. The Trustees approve separate 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 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 period-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. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Equity securities, including shares of closed-end investment companies and exchange-traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and approved by the Board of Trustees. Such pricing services generally use the security’s last sale price on the exchange or market where the security is primarily traded or, if there is no reported sale during the day, the closing bid price. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking a NOCP, at the most recent bid quotation on the applicable NASDAQ Market. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not

61 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Swap agreements are valued based on prices supplied by a pricing service, if available, or quotations obtained from broker-dealers. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Investments in other open-end investment companies are valued at their net asset value each day. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser using consistently applied procedures under the general supervision of the Board of Trustees.

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

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

c. Foreign Currency Translation. The books and records of the Funds are maintained in U.S. dollars. The 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 on the respective dates of such transactions.

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

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

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

d. Forward Foreign Currency Contracts. The Funds may enter into forward foreign currency contracts, including forward foreign cross currency contracts. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell generally are used to hedge a Fund’s investments against currency fluctuation. Also, a contract to buy or sell can offset a previous contract. These contracts involve market risk in excess of the unrealized gain or loss reflected in the Funds’ Statements of Assets and Liabilities. The U.S. dollar value of the currencies a Fund has committed to buy or sell represents the aggregate exposure to each currency the Fund

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Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

has acquired or hedged through currency contracts outstanding at period end. Gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Certain contracts may require the movement of cash or securities as collateral for the Funds’ or counterparty’s net obligations under the contracts.

e. Swap Agreements. Each Fund 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. 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 make or receive upfront payments. 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 credit default swaps are not recorded in the financial statements. Credit default swaps are marked-to-market daily. Fluctuations in the value of credit default swaps 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 Statements of Operations as realized gain or loss when received or paid. Upfront fees 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.

Credit default swaps are privately negotiated and 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. The Funds cover their net obligations under outstanding credit default swaps by segregating or earmarking liquid assets or cash.

There were no credit default swaps held by the Funds during the six months ended March 31, 2011.

f. Federal and Foreign Income Taxes. Each Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of March 31, 2011 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

g. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as foreign currency transactions, premium amortization, defaulted bond adjustments, paydown gains and losses, distribution redesignations, expired capital loss carryforwards and return of capital and capital gain distributions from REITs. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to deferred Trustees’ fees, wash sales, premium amortization, forward contract mark to market, dividends payable, securities lending collateral gain/loss adjustment, REIT basis adjustments, contingent payment debt instruments and defaulted bond interest. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

63 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the year ended September 30, 2010 was as follows:


	2010 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Core Plus Bond Fund	$	15,673,765	$	—	$	15,673,765
High Income Fund		10,907,478		—		10,907,478
International Bond Fund		1,057,069		—		1,057,069
Limited Term Government and Agency Fund		5,644,012		—		5,644,012
Strategic Income Fund		716,030,690		—		716,030,690

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, 2010, the capital loss carryforwards and post-October losses were as follows:


	Core Plus Bond Fund			High Income Fund			International Bond Fund		Limited Term Government and Agency Fund			Strategic Income Fund
Capital loss carryforward:
Expires September 30, 2014	$	(181,728	)	$	—		$	—	$	—		$	—
Expires September 30, 2015		—			—			—		(715,432	)		—
Expires September 30, 2016		—			—			—		(100,316	)		—
Expires September 30, 2017		—			(33,112	)		—		—			(45,672,245	)
Expires September 30, 2018		—			—			—		—			(529,941,082	)

Total capital loss carryforward	$	(181,728	)	$	(33,112	)	$	—	$	(815,748	)	$	(575,613,327	)

Deferred net capital losses (post-October 2009)	$	—		$	—		$	—	$	—		$	(126,545,807	)

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted. The Act modernizes several of the federal income and excise tax provisions related to RICs, and, with certain exceptions, is effective for taxable years beginning after December 22, 2010. Among the changes made are changes to the capital loss carryforward rules allowing for capital losses to be carried forward indefinitely. Rules in effect as of the report date limit the carryforward period to eight years. Capital loss carryforwards generated in taxable years beginning after effective date of the Act must be fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.

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

i. Delayed Delivery Commitments. The Funds may purchase securities, including those designated as TBAs in the Portfolio of Investments, for which delivery or payment will occur at a later date, beyond the normal settlement period. The price of the security and the date when the security 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 actual security that will be delivered to fulfill a TBA trade is not designated at the time of the trade. The security is “to be announced” 48 hours prior to the established trade settlement date. 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. When the Funds enter into such a transaction, collateral consisting of liquid securities or cash and cash equivalents is required to be segregated or earmarked at the custodian in an amount at least equal to the amount of the Funds’ commitment.

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Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Purchases of delayed delivery securities may have a similar effect on the Funds’ net asset value as if the Funds had created a degree of leverage in its 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.

j. 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 six months ended March 31, 2011, none of the Funds had loaned securities under this agreement. Excess collateral in the amount of $3,175,275 related to terminated loans with a bankrupt borrower is held by State Street Bank on behalf of Strategic Income Fund.

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

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

•

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

•

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

•

Level 3 – prices determined using significant unobservable inputs 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 following is a summary of the inputs used to value the Funds’ investments as of March 31, 2011, at value:

Core Plus Bond Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total

Bonds and Notes
ABS Car Loan	$	—	$	8,221,815	$	1,775,000	$	9,996,815
Wireless		—		13,230,179		2,012,274		15,242,453
All Other Bonds and Notes(a)		—		342,842,706		—		342,842,706

Total Bonds and Notes		—		364,294,700		3,787,274		368,081,974

Bank Loans(a)		—		2,701,701		—		2,701,701
Preferred Stocks(a)		—		2,192,690		—		2,192,690
Short-Term Investments		—		13,602,620		—		13,602,620

Total	$	—	$	382,791,711	$	3,787,274	$	386,578,985

65 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Liability Valuation Inputs


Description(a)	Level 1		Level 2			Level 3		Total

Forward Foreign Currency Contracts (unrealized depreciation)	$	—	$	(23,536	)	$	—	$	(23,536	)

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

High Income Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total

Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	—	$	—	$	350,000	$	350,000
Supranational		—		7,148,267		1,576,511		8,724,778
Wireless		—		2,208,847		609,780		2,818,627
All Other Non-Convertible Bonds(a)		—		91,655,008		—		91,655,008

Total Non-Convertible Bonds		—		101,012,122		2,536,291		103,548,413

Convertible Bonds(a)		—		32,601,344		—		32,601,344

Total Bonds and Notes		—		133,613,466		2,536,291		136,149,757

Bank Loans(a)		—		1,028,120		—		1,028,120
Preferred Stocks
Convertible Preferred Stocks
Automotive		3,304,110		803,233		—		4,107,343
Capital Markets		—		2,638,630		—		2,638,630
Diversified Financial Services		—		166,074		—		166,074
Electric Utilities		315,980		—		—		315,980
Machinery		—		—		119,850		119,850
Oil, Gas & Consumable Fuels		420,375		—		—		420,375
Semiconductors & Semiconductor Equipment		783,020		—		—		783,020

Total Convertible Preferred Stocks		4,823,485		3,607,937		119,850		8,551,272

Non-Convertible Preferred Stocks(a)		—		922,873		—		922,873

Total Preferred Stocks		4,823,485		4,530,810		119,850		9,474,145

Common Stocks(a)		2,412,014		—		—		2,412,014
Closed End Investment Companies		11,270		—		—		11,270
Warrants		—		—		—		—
Short-Term Investments		—		16,610,830		—		16,610,830

Total	$	7,246,769	$	155,783,226	$	2,656,141	$	165,686,136

Liability Valuation Inputs


Description(a)	Level 1		Level 2		Level 3		Total

Forward Foreign Currency Contracts (unrealized depreciation)	$	—	$	(46,043)	$	—	$	(46,043)

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

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Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

International Bond Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total

Bonds and Notes
Non-Convertible Bonds
Supranationals	$	—	$	1,718,818	$	124,289	$	1,843,107
All Other Non-Convertible Bonds(a)		—		20,157,235		—		20,157,235

Total Non-Convertible Bonds		—		21,876,053		124,289		22,000,342

Convertible Bonds(a)		—		48,250		—		48,250

Total Bonds and Notes		—		21,924,303		124,289		22,048,592

Forward Foreign Currency Contracts (unrealized appreciation)(a)		—		53,335		—		53,335

Total	$	—	$	21,977,638	$	124,289	$	22,101,927

Liability Valuation Inputs


Description(a)	Level 1		Level 2			Level 3		Total

Forward Foreign Currency Contracts (unrealized depreciation)	$	—	$	(15,791	)	$	—	$	(15,791	)

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

Limited Term Government and Agency Fund

Asset Valuation Inputs


Description(a)	Level 1		Level 2		Level 3		Total

Bonds and Notes	$	—	$	401,744,393	$	—	$	401,744,393
Short-Term Investments		—		1,839,203		—		1,839,203

Total	$	—	$	403,583,596	$	—	$	403,583,596

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

Strategic Income Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total

Bonds and Notes
Non-Convertible Bonds
Non-Captive Consumer	$	2,310,874	$	692,270,595	$	—	$	694,581,469
Non-Captive Diversified		—		1,125,357,587		19,052,512		1,144,410,099
All Other Non-Convertible Bonds(a)		—		8,694,211,669		—		8,694,211,669

Total Non-Convertible Bonds		2,310,874		10,511,839,851		19,052,512		10,533,203,237

Convertible Bonds(a)		—		1,275,290,668		—		1,275,290,668
Municipals(a)		—		174,440,409		—		174,440,409

Total Bonds and Notes		2,310,874		11,961,570,928		19,052,512		11,982,934,314

Bank Loans(a)		—		42,252,230		—		42,252,230
Common Stocks(a)		721,031,429		—		—		721,031,429

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Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Asset Valuation Inputs (continued)


Description	Level 1		Level 2		Level 3		Total

Preferred Stocks
Convertible Preferred Stocks
Automotive	$	95,034,735	$	32,838,821	$	—	$	127,873,556
Capital Markets		—		8,929,932		—		8,929,932
Commercial Banks		8,833,362		—		—		8,833,362
Diversified Financial Services		19,271,491		9,044,981		—		28,316,472
Electric Utilities		18,572,158		—		4,847,625		23,419,783
Household Durables		7,526,000		—		—		7,526,000
Machinery		—		—		10,786,077		10,786,077
Oil, Gas & Consumable Fuels		32,782,393		—		—		32,782,393
REITs – Healthcare		6,080,070		—		—		6,080,070
Semiconductors & Semiconductor Equipment		39,121,600		—		—		39,121,600

Total Convertible Preferred Stocks		227,221,809		50,813,734		15,633,702		293,669,245

Non-Convertible Preferred Stocks
Banking		—		34,350,338		—		34,350,338
Diversified Financial Services		24,013,370		—		—		24,013,370
Electric Utilities		—		31,882		—		31,882
Household Durables		785,774		—		—		785,774
REITs – Office Property		—		1,700,738		—		1,700,738
REITs – Warehouse/Industrials		6,274,368		—		—		6,274,368
Software		—		28,088,125		—		28,088,125
Thrifts & Mortgage Finance		9,655,346		—		—		9,655,346

Total Non-Convertible Preferred Stocks		40,728,858		64,171,083		—		104,899,941

Total Preferred Stocks		267,950,667		114,984,817		15,633,702		398,569,186

Closed End Investment Companies		28,680,141		—		—		28,680,141
Short-Term Investments		—		187,522,869		—		187,522,869

Total Investments	$	1,019,973,111	$	12,306,330,844	$	34,686,214	$	13,360,990,169

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

Preferred stocks valued at $21,195,000 were transferred from Level 2 to Level 1 during the six months ended March 31, 2011. At September 30, 2010, this security was valued at the original purchase price; at March 31, 2011, this security was valued at the market price in accordance with the Fund’s valuation policies. All transfers are recognized as of the beginning of the reporting period.

| 68

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of March 31, 2011:

Core Plus Bond Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2010		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Purchases		Sales		Transfers into Level 3		Transfers out of Level 3		Balance as of March 31, 2011		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at March 31, 2011
Bonds and Notes ABS Car Loan	$	—	$	—	$	—	$	49	$	1,774,951	$	—	$	—	$	—	$	1,775,000	$	49
Wireless		—		—		—		32,274		1,980,000		—		—		—		2,012,274		32,274

Total	$	—	$	—	$	—	$	32,323	$	3,754,951	$	—	$	—	$	—	$	3,787,274	$	32,323

High Income Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2010		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Purchases		Sales		Transfers into Level 3		Transfers out of Level 3		Balance as of March 31, 2011		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at March 31, 2011
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	—	$	—	$	—	$	15		$	349,985	$	—	$	—	$	—	$	350,000	$	15
Supranational		—		282		—		(20,456	)		1,596,685		—		—		—		1,576,511		(20,456	)
Wireless		—		—		—		9,780			600,000		—		—		—		609,780		9,780
Preferred Stocks
Convertible Preferred Stocks
Machinery		—		—		—		34,425			—		—		85,425		—		119,850		34,425

Total	$	—	$	282	$	—	$	23,764		$	2,546,670	$	—	$	85,425	$	—	$	2,656,141	$	23,764

Preferred stocks valued at $85,425 were transferred from Level 2 to Level 3 during the six months ended March 31, 2011. At September 30, 2010, these securities were valued using evaluated bids furnished to the Fund by a pricing service; at March 31, 2011, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund.

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

69 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

International Bond Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2010		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Purchases		Sales		Transfers into Level 3		Transfers out of Level 3		Balance as of March 31, 2011		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at March 31, 2011
Bonds and Notes
Non-Convertible Bonds Supranationals	$	—	$	34	$	—	$	(1,559)	$	125,814	$	—	$	—	$	—	$	124,289	$	(1,559)

Strategic Income Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2010		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Purchases		Sales		Transfers Into Level 3		Transfers out of Level 3			Balance as of March 31, 2011		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at March 31, 2011
Bonds and Notes
Non-Convertible Bonds Airlines	$	34,976,018	$	—	$	—	$	—	$	—	$	—	$	—	$	(34,976,018	)	$	—	$	—
Non-Captive Diversified		—		—		—		47,512		19,005,000		—		—		—			19,052,512		47,512
Preferred Stocks
Convertible Preferred Stocks
Electric Utilities		3,770,375		—		—		1,077,250		—		—		—		—			4,847,625		1,077,250
Machinery		—		—		—		3,098,129		—		—		7,687,948		—			10,786,077		3,098,129

Total	$	38,746,393	$	—	$	—	$	4,222,891	$	19,005,000	$	—	$	7,687,948	$	(34,976,018)		$	34,686,214	$	4,222,891

Debt securities valued at $34,976,018 were transferred from Level 3 to Level 2 during the six months ended March 31, 2011. At September 30, 2010, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund; at March 31, 2011, these securities were valued on the basis of evaluated bids furnished to the Fund by a pricing service.

Preferred stocks valued at $7,687,948 were transferred from Level 2 to Level 3 during the six months ended March 31, 2011. At September 30, 2010, these securities were valued using evaluated bids furnished to the Fund by a pricing service; at March 31, 2011, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund.

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 another security or financial instrument. Derivative instruments that the Funds used during the period include forward foreign currency contracts.

The Funds are subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. The Funds may enter into forward foreign currency contracts for hedging purposes to protect the value of the Funds’ holdings of foreign securities. The Funds may also use forward foreign currency contracts to gain exposure to foreign currencies, regardless of whether securities denominated in such currencies are held in the Funds. During the six months ended March 31, 2011, Core Plus Bond Fund and High Income Fund engaged in forward foreign currency transactions for hedging purposes. During the same period, International Bond Fund engaged in forward foreign currency transactions for hedging purposes and to gain exposure to foreign currencies.

| 70

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Each Fund is party to agreements with counterparties that govern transactions in forward foreign currency contracts. These agreements contain credit-risk-related contingent features that allow the counterparties to terminate open contracts early if the net asset value of a Fund declines beyond a certain threshold. If such features were to be triggered, the counterparties could request immediate settlement of open contracts at current fair value. As of March 31, 2011, the fair value of derivative positions subject to credit-risk-related contingent features that are in a net liability position (unrealized depreciation) by counterparty, and the value of collateral pledged to counterparties for such contracts is as follows:


Fund	Counterparty	Derivatives			Collateral Pledged
Core Plus Bond Fund	Credit Suisse	$	(23,536	)	$	—
High Income Fund	Barclays		(46,043	)		—
International Bond Fund	JPMorgan Chase		(9,450	)		—

Forward foreign currency contracts are subject to the risk that the counterparty will be unwilling or unable to meet its obligations under the contracts. The Funds have mitigated this risk by entering into master netting agreements with counterparties that allow the Fund and the counterparty to net amounts owed by each related to derivative contracts to one net amount payable by either the Fund or the counterparty. The maximum amount of loss that the Funds would incur if counterparties failed to meet their obligations, based on the value of derivative positions in an unrealized gain position as of period end, and the amount of loss that the Funds would incur after taking into account master netting arrangements, are as follows as of March 31, 2011:


Fund	Maximum Amount of Loss - Gross		Maximum Amount of Loss - Net
Core Plus Bond Fund	$	—	$	—
High Income Fund		—		—
International Bond Fund		53,335		46,994

Counterparty risk is managed through the posting of collateral and, as a result, the risk of loss to a Fund from counterparty default should be limited to the extent a Fund is undercollateralized. In addition to collateral requirements, the Funds also require counterparties to meet minimum credit quality requirements.

The following is a summary of derivative instruments for Core Plus Bond Fund as of March 31, 2011:


Statements of Assets and Liabilities Caption	Foreign Exchange Contracts
Liabilities
Unrealized depreciation on forward foreign currency contracts	$	(23,536	)

Transactions in derivative instruments for Core Plus Bond Fund during the six months ended March 31, 2011, were as follows:


Statements of Operations Caption	Foreign Exchange Contracts
Net Change in Unrealized Appreciation (Depreciation) on:
Foreign currency translations*	$	(23,536	)

*	Represents change in unrealized appreciation (depreciation) for forward foreign currency contracts during the period.

The following is a summary of derivative instruments for High Income Fund as of March 31, 2011:


Statements of Assets and Liabilities Caption	Foreign Exchange Contracts
Liabilities
Unrealized depreciation on forward foreign currency contracts	$	(46,043	)

71 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Transactions in derivative instruments for High Income Fund during the six months ended March 31, 2011, were as follows:


Statements of Operations Caption	Foreign Exchange Contracts
Net Realized Gain (Loss) on:
Foreign currency transactions*	$	(57,807	)
Net Change in Unrealized Appreciation (Depreciation) on:
Foreign currency translations*		(46,043	)

*	Represents realized loss and change in unrealized appreciation (depreciation), respectively, for forward foreign currency contracts during the period.

The following is a summary of derivative instruments for International Bond Fund as of March 31, 2011:


Statements of Assets and Liabilities Caption	Foreign Exchange Contracts
Assets
Unrealized appreciation on forward foreign currency contracts	$	53,335
Liabilities
Unrealized depreciation on forward foreign currency contracts		(15,791	)

Transactions in derivative instruments for International Bond Fund during the six months ended March 31, 2011, were as follows:


Statements of Operations Caption	Foreign Exchange Contracts
Net Realized Gain (Loss) on:
Foreign currency transactions*	$	190,919
Net Change in Unrealized Appreciation (Depreciation) on:
Foreign currency translations*		(97,047	)

*	Represents realized gain and change in unrealized appreciation (depreciation), respectively, for forward foreign currency contracts during the period.

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.

| 72

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Volume of forwards activity, as a percentage of net assets, for Core Plus Bond Fund, High Income Fund and International Bond Fund, based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended March 31, 2011:


Core Plus Bond Fund	Forwards
Average Notional Amount Outstanding		0.42	%
Highest Notional Amount Outstanding		3.00	%
Lowest Notional Amount Outstanding		0.00	%
Notional Amount Outstanding as of March 31, 2011		3.00	%

High Income Fund	Forwards
Average Notional Amount Outstanding		0.56	%
Highest Notional Amount Outstanding		0.92	%
Lowest Notional Amount Outstanding		0.00	%
Notional Amount Outstanding as of March 31, 2011		0.92	%

International Bond Fund	Forwards
Average Notional Amount Outstanding		27.62	%
Highest Notional Amount Outstanding		42.00	%
Lowest Notional Amount Outstanding		21.89	%
Notional Amount Outstanding as of March 31, 2011		22.76	%

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

5. Purchases and Sales of Securities. For the six months ended March 31, 2011, 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
Core Plus Bond Fund	$	141,954,589	$	158,792,311	$	96,124,107	$	85,785,522
High Income Fund		—		—		46,349,043		50,745,786
International Bond Fund		2,014,304		2,008,748		10,616,247		21,271,683
Limited Term Government and Agency Fund		196,544,188		156,560,836		35,349,571		9,978,541
Strategic Income Fund		318,107,642		—		992,476,833		1,937,577,878

6. Management Fees and Other Transactions with Affiliates.

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


	Percentage of Average Daily Net Assets
Fund	First $100 million			Next $100 million			Next $50 million			Next $1.75 billion			Next $13 billion			Over $15 billion
Core Plus Bond Fund		0.2500	%		0.1875	%		0.1875	%		0.1875	%		0.1875	%		0.1875	%
High Income Fund		0.6000	%		0.6000	%		0.6000	%		0.6000	%		0.6000	%		0.6000	%
International Bond Fund		0.6000	%		0.6000	%		0.6000	%		0.6000	%		0.6000	%		0.6000	%
Limited Term Government and Agency Fund		0.5000	%		0.5000	%		0.5000	%		0.4000	%		0.4000	%		0.4000	%
Strategic Income Fund		0.6500	%		0.6500	%		0.6000	%		0.6000	%		0.5500	%		0.5400	%

73 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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


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

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

Loomis Sayles has given binding undertakings to the Funds to 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 and extraordinary expenses. These undertakings are in effect until January 31, 2012 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 six months ended March 31, 2011, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:


	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Class A	Class B	Class C	Class Y	Admin Class
Core Plus Bond Fund	0.90%	1.65%	1.65%	0.65%	—
High Income Fund	1.15%	1.90%	1.90%	0.90%	—
International Bond Fund	1.10%	—	1.85%	0.85%	—
Limited Term Government and Agency Fund	0.85%	1.60%	1.60%	0.60%	—
Strategic Income Fund	1.25%	2.00%	2.00%	1.00%	1.50%

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

Loomis Sayles (and Natixis Advisors for Core Plus Bond Fund) shall be permitted to recover expenses borne under the expense limitation agreements (whether through waiver of its management fees or otherwise) on a class by class basis in later periods to the extent the expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such 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 six months ended March 31, 2011, the management fees and waivers of 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
Fund	Gross Management Fees		Waivers of Management Fees¹		Net Management Fees		Gross			Net
Core Plus Bond Fund	$	396,443	$	—	$	396,443		0.203	%		0.203	%
High Income Fund		490,547		—		490,547		0.600	%		0.600	%
International Bond Fund		81,464		69,093		12,371		0.600	%		0.091	%
Limited Term Government and Agency Fund		877,271		103,662		773,609		0.466	%		0.411	%
Strategic Income Fund		37,538,551		—		37,538,551		0.558	%		0.558	%

¹	Management fee waivers are subject to possible recovery until September 30, 2012.

| 74

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

For the six months ended March 31, 2011, the advisory administration fees for Core Plus Bond Fund were as follows:


Advisory Administration Fee	Percentage of Average Daily Net Assets
$396,443		0.203%

For the six months ended March 31, 2011, expense reimbursements related to the prior fiscal year were recovered as follows:


	Recovered Expenses
Fund	Class A		Class B		Class C		Class Y		Total
High Income Fund	$	7,237	$	110	$	1,971	$	6,009	$	15,327

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

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

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

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

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

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

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

75 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

For the six months ended March 31, 2011, the Funds paid the following service and distribution fees:


	Service Fees								Distribution Fees
Fund	Class A		Class B		Class C		Admin Class		Class B		Class C		Admin Class
Core Plus Bond Fund	$	259,298	$	4,952	$	149,423	$	—	$	14,856	$	448,269	$	—
High Income Fund		93,918		1,383		25,887		—		4,148		77,660		—
International Bond Fund		21,921		—		7,654		—		—		22,964		—
Limited Term Government and Agency Fund		250,810		7,285		91,007		—		21,857		273,023		—
Strategic Income Fund		7,119,810		165,733		6,348,308		10,959		497,199		19,044,924		10,959

c. Administrative Fees. Natixis Advisors provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion and 0.0350% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the six months ended March 31, 2011, each Fund paid the following administrative fees to Natixis Advisors:


Fund	Administrative Fees
Core Plus Bond Fund	$	91,030
High Income Fund		38,198
International Bond Fund		6,345
Limited Term Government and Agency Fund		87,898
Strategic Income Fund		3,142,417

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

For the six months ended March 31, 2011, the Funds paid the following sub-transfer agent fees, which are reflected in transfer agent fees and expenses in the Statements of Operations.


Fund	Sub-Transfer Agent Fees
Core Plus Bond Fund	$	125,239
High Income Fund		51,140
International Bond Fund		5,765
Limited Term Government and Agency Fund		70,247
Strategic Income Fund		3,950,368

| 76

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

e. Commissions. Commissions (including CDSCs) on Fund shares retained by Natixis Distributors during the six months ended March 31, 2011 were as follows:


Fund	Commissions
Core Plus Bond Fund	$	212,453
High Income Fund		49,292
International Bond Fund		4,656
Limited Term Government and Agency Fund		107,676
Strategic Income Fund		2,519,255

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 Natixis Advisors, Natixis Distributors, Natixis US or their affiliates. The Chairperson of the Board receives a retainer fee at the annual rate of $250,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $80,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chairman receives an additional retainer fee at an annual rate of $15,000. Each Contract Review and Governance Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Funds until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain funds of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts, and Hansberger International Series, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees in the Statements of Assets and Liabilities.

7. Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participates in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

Effective April 21, 2011, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, will participate in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that will participate in the line of credit. Interest will be 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 0.125% per annum, payable at the end of each calendar quarter, will be accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the six months ended March 31, 2011, none of the Funds had borrowings under these agreements.

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

Each Fund’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. At March 31, 2011, the Loomis Sayles Employees’ Profit Sharing Retirement Plan held 27,912 shares of beneficial interest of Limited Term Government and Agency Fund.

77 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

From time to time, the Funds may have a concentration of several shareholders having a significant percentage of shares outstanding. Investment activities of these shareholders could have material impacts on the Funds. As of March 31, 2011, one shareholder individually owned more than 5% of Limited Term Government and Agency Fund’s total outstanding shares, representing 5.84% of the Fund’s net assets. Such ownership may be beneficially held by individuals or entities other than the owner of record.

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


	Six Months Ended March 31, 2011					Year Ended September 30, 2010
Core Plus Bond Fund	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	3,032,407		$	38,246,183		8,076,791		$	99,281,285
Issued in connection with the reinvestment of distributions	305,573			3,842,934		503,145			6,118,146
Redeemed	(4,227,557	)		(53,230,022	)	(3,556,858	)		(43,324,928	)

Net change	(889,577	)	$	(11,140,905	)	5,023,078		$	62,074,503

Class B
Issued from the sale of shares	14,270		$	182,537		46,593		$	562,160
Issued in connection with the reinvestment of distributions	5,067			63,936		14,472			175,787
Redeemed	(90,226	)		(1,145,001	)	(298,342	)		(3,615,617	)

Net change	(70,889	)	$	(898,528	)	(237,277	)	$	(2,877,670	)

Class C
Issued from the sale of shares	1,357,749		$	17,140,317		4,971,733		$	60,338,041
Issued in connection with the reinvestment of distributions	79,585			1,001,303		143,826			1,750,082
Redeemed	(1,734,051	)		(21,836,494	)	(1,930,707	)		(23,457,007	)

Net change	(296,717	)	$	(3,694,874	)	3,184,852		$	38,631,116

Class Y
Issued from the sale of shares	1,188,549		$	15,087,610		4,875,867		$	59,587,010
Issued in connection with the reinvestment of distributions	60,378			763,931		102,891			1,263,048
Redeemed	(2,102,081	)		(26,813,560	)	(2,443,989	)		(29,878,028	)

Net change	(853,154	)	$	(10,962,019	)	2,534,769		$	30,972,030

Increase (decrease) from capital share transactions	(2,110,337	)	$	(26,696,326	)	10,505,422		$	128,799,979


	Six Months Ended March 31, 2011					Year Ended September 30, 2010
High Income Fund	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	6,406,995		$	32,219,556		7,886,065		$	37,432,096
Issued in connection with the reinvestment of distributions	414,136			2,063,913		740,661			3,486,120
Redeemed	(5,868,284	)		(29,489,780	)	(8,110,153	)		(38,368,078	)

Net change	952,847		$	4,793,689		516,573		$	2,550,138

Class B
Issued from the sale of shares	7,725		$	38,906		27,891		$	131,139
Issued in connection with the reinvestment of distributions	5,683			28,373		13,045			61,362
Redeemed	(58,503	)		(293,024	)	(143,704	)		(680,984	)

Net change	(45,095	)	$	(225,745	)	(102,768	)	$	(488,483	)

Class C
Issued from the sale of shares	906,852		$	4,550,450		1,272,869		$	6,002,594
Issued in connection with the reinvestment of distributions	81,744			408,112		138,274			650,996
Redeemed	(1,017,296	)		(5,134,472	)	(1,443,966	)		(6,801,815	)

Net change	(28,700	)	$	(175,910	)	(32,823	)	$	(148,225	)

Class Y
Issued from the sale of shares	5,230,705		$	26,362,690		10,174,824		$	47,942,376
Issued in connection with the reinvestment of distributions	444,780			2,215,625		940,961			4,395,066
Redeemed	(5,577,721	)		(27,860,433	)	(20,410,850	)		(95,761,418	)

Net change	97,764		$	717,882		(9,295,065	)	$	(43,423,976	)

Increase (decrease) from capital share transactions	976,816		$	5,109,916		(8,914,083	)	$	(41,510,546	)

| 78

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)


	Six Months Ended March 31, 2011					Year Ended September 30, 2010
International Bond Fund	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	310,157		$	3,443,838		1,454,026		$	15,450,317
Issued in connection with the reinvestment of distributions	48,847			520,362		25,628			268,292
Redeemed	(691,792	)		(7,492,108	)	(582,821	)		(6,085,212	)

Net change	(332,788	)	$	(3,527,908	)	896,833		$	9,633,397

Class C
Issued from the sale of shares	76,500		$	830,178		488,076		$	5,290,541
Issued in connection with the reinvestment of distributions	6,600			69,857		4,722			49,432
Redeemed	(104,350	)		(1,125,861	)	(212,865	)		(2,176,537	)

Net change	(21,250	)	$	(225,826	)	279,933		$	3,163,436

Class Y
Issued from the sale of shares	66,794		$	737,139		363,950		$	3,901,435
Issued in connection with the reinvestment of distributions	6,729			72,798		34,152			358,772
Redeemed	(698,911	)		(7,888,374	)	(805,893	)		(8,515,480	)

Net change	(625,388	)	$	(7,078,437	)	(407,791	)	$	(4,255,273	)

Increase (decrease) from capital share transactions	(979,426	)	$	(10,832,171	)	768,975		$	8,541,560


	Six Months Ended March 31, 2011					Year Ended September 30, 2010
Limited Term Government and Agency Fund	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	12,933,441		$	153,984,071		11,266,230		$	133,267,058
Issued in connection with the reinvestment of distributions	243,436			2,896,407		199,254			2,358,259
Redeemed	(6,357,553	)		(75,647,525	)	(8,020,196	)		(94,867,976	)

Net change	6,819,324		$	81,232,953		3,445,288		$	40,757,341

Class B
Issued from the sale of shares	777,069		$	9,196,264		74,327		$	877,417
Issued in connection with the reinvestment of distributions	5,237			62,223		4,282			50,516
Redeemed	(99,963	)		(1,189,894	)	(124,533	)		(1,466,258	)

Net change	682,343		$	8,068,593		(45,924	)	$	(538,325	)

Class C
Issued from the sale of shares	1,300,166		$	15,535,752		4,108,090		$	48,568,618
Issued in connection with the reinvestment of distributions	51,870			617,715		41,123			487,281
Redeemed	(2,096,385	)		(24,997,335	)	(2,221,038	)		(26,267,537	)

Net change	(744,349	)	$	(8,843,868	)	1,928,175		$	22,788,362

Class Y
Issued from the sale of shares	2,917,144		$	34,958,835		10,058,653		$	119,749,282
Issued in connection with the reinvestment of distributions	62,913			751,193		40,673			484,828
Redeemed	(3,677,044	)		(43,901,885	)	(4,553,430	)		(54,266,299	)

Net change	(696,987	)	$	(8,191,857	)	5,545,896		$	65,967,811

Increase (decrease) from capital share transactions	6,060,331		$	72,265,821		10,873,435		$	128,975,189

79 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)


	Six Months Ended March 31, 2011					Year Ended September 30, 2010*
Strategic Income Fund	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	47,706,228		$	711,712,948		102,095,738		$	1,433,327,434
Issued in connection with the reinvestment of distributions	8,958,378			132,962,547		19,067,875			267,178,534
Redeemed	(71,207,045	)		(1,060,425,268	)	(143,344,700	)		(2,011,259,494	)

Net change	(14,542,439	)	$	(215,749,773	)	(22,181,087	)	$	(310,753,526	)

Class B
Issued from the sale of shares	88,076		$	1,317,878		186,206		$	2,622,085
Issued in connection with the reinvestment of distributions	111,282			1,661,923		248,193			3,496,666
Redeemed	(1,049,493	)		(15,751,816	)	(2,205,963	)		(31,123,182	)

Net change	(850,135	)	$	(12,772,015	)	(1,771,564	)	$	(25,004,431	)

Class C
Issued from the sale of shares	22,491,707		$	337,144,423		56,633,554		$	798,369,591
Issued in connection with the reinvestment of distributions	4,088,802			61,020,245		8,306,362			117,036,115
Redeemed	(43,611,337	)		(653,065,844	)	(80,289,909	)		(1,131,902,366	)

Net change	(17,030,828	)	$	(254,901,176	)	(15,349,993	)	$	(216,496,660	)

Class Y
Issued from the sale of shares	45,120,463		$	673,015,337		71,382,373		$	1,004,096,644
Issued in connection with the reinvestment of distributions	2,049,416			30,408,557		3,481,005			48,849,457
Redeemed	(42,854,906	)		(637,587,343	)	(56,938,380	)		(797,459,413	)

Net change	4,314,973		$	65,836,551		17,924,998		$	255,486,688

Admin Class
Issued from the sale of shares	733,916		$	10,934,371		309,466		$	4,414,761
Issued in connection with the reinvestment of distributions	13,940			206,993		2,485			35,684
Redeemed	(24,921	)		(372,421	)	(13,316	)		(193,142	)

Net change	722,935		$	10,768,943		298,635		$	4,257,303

Increase (decrease) from capital share transactions	(27,385,494	)	$	(406,817,470	)	(21,079,011	)	$	(292,510,626	)

*	From commencement of operations on February 1, 2010 through September 30, 2010 for Admin Class shares.

| 80

SEMIANNUAL REPORT

March 31, 2011

LOGO

Loomis Sayles Global Equity and Income Fund

(Formerly Loomis Sayles Global Markets Fund)

Loomis Sayles Growth Fund

Loomis Sayles Mid Cap Growth Fund

Loomis Sayles Value Fund

Loomis, Sayles & Company, L.P.

TABLE OF CONTENTS

Management Discussion and Performance page 1

Portfolio of Investments page 21

Financial Statements page 48

LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND*

Management Discussion

Managers:

Mark Baribeau, CFA**

Dan Fuss, CFA, CIC

Warren Koontz, CFA, CIC

David Rolley, CFA

Loomis, Sayles & Company, L.P.

Objective:

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

Strategy:

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

Fund Inception:

May 1, 1996

Symbols:


Class A		LGMAX
Class C		LGMCX
Class Y		LSWWX

*	Formerly Loomis Sayles Global Markets Fund

**	Effective May 2, 2011, Mark Baribeau no longer serves as a portfolio manager of the fund.

Effective March 31, 2011, Loomis Sayles Global Markets Fund changed its name to Loomis Sayles Global Equity and Income Fund.

Market Conditions

Last year��s stock market rally carried over into 2011 until Mideast turmoil, Japan’s devastating earthquake and rising energy prices stymied the rally. Those concerns, as well as Europe’s ongoing sovereign debt crisis, led fixed-income investors to reconsider the riskier positions taken in response to improving economic trends. The dollar weakened against major currencies and interest rates were broadly on the rise. Given the magnitude of these concerns, corporate issues held up well compared to government obligations, and lower-quality bonds outperformed higher-rated issues.

Performance Results

For the six months ended March 31, 2011, Class A shares of Loomis Sayles Global Equity and Income Fund returned 12.14% at net asset value. The fund trailed its primary benchmark, the Morgan Stanley Capital International (MSCI) World Index, which returned 14.42%. The fund outperformed its secondary benchmark, the Citigroup World Government Bond Index, which returned -1.11%. The fund also outperformed the 8.57% average return of funds in Morningstar’s World Allocation category.

Explanation of Fund Performance

The fund pursues its objective by investing in equity and fixed-income securities. The fund’s primary benchmark measures equity market performance and its secondary benchmark measures government bond market performance.

On the equity side of the portfolio, strong stock selection within the information technology and industrial sectors enhanced returns. Companies tied to the global demand for smart phones and Internet access led in technology. British chip maker ARM Holdings turned in strong results, thanks to increased sales and licensing agreements. Apple continued to move higher, due to vigorous sales of its iPad tablet computer. In addition, Verizon’s adoption of iPhones boosted sales. Nvidia, which supplies semiconductors for non-Apple devices, declined. Within industrials, robust orders and

1 |

a sizeable backlog boosted FMC Technologies, makers and providers of offshore oil and gas systems and service. We increased energy exposure in response to growing global demand for oil service. In Brazil, shares of OGX Petroleo e Gas retreated following a disappointing earnings report, while Hypermarcas, a large conglomerate, fell when news of its intention to acquire a large drug chain was poorly received by the market. Stock selection among financials hurt returns as market participants shifted from the developing markets we emphasized to troubled financial institutions in developed countries.

On the bond side of the portfolio, results benefited from corporate bond exposure and an underweight in government bonds. Cyclical holdings stood out, including Lucent in technology, iStar in financials and Hovnanian Enterprises in manufacturing. The fund’s high-yield, emerging market and convertible securities also aided returns. The fund had less exposure than the index to Japanese securities, which benefited performance relative to that measure. Despite the fund’s short duration, or sensitivity to interest rate changes, long duration in U.S. dollar-denominated bonds proved disadvantageous when rates rose. A rally in the euro hurt returns compared to the index, because the fund was underweight in the euro.

Outlook

The Federal Reserve Board’s (the Fed) Treasury purchase program designed to inject money into the economy, which is referred to as “QE2” (short for quantitative easing), is about to end. A new wave of purchases is not expected unless the economy deteriorates; and that prospect is unlikely, given recent strong employment data. Rising energy prices notwithstanding, we anticipate 2011 earnings growth of 15% for the S&P 500 Index, decelerating to 10% or so next year. The Fed may have to snug up interest rates at some point if inflation expands.

In Asia outside of Japan, we believe strong currency moves versus the dollar will offset the effects of weak local equity markets. Overall, we are retaining corporate exposures because we believe that further global expansion is likely and that rising commodity prices will help sustain growth in emerging markets.

What You Should Know:

Investments in the Fund are subject to a number of risks. Please see the “Principal Risks” section of the Funds prospectus. The purchase of Fund shares should be seen as a long-term investment.

| 2

LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND*

Investment Results through March 31, 2011

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

March 31, 2001 through March 31, 2011

LOGO

Average Annual Returns — March 31, 2011⁵



	6 Months			1 Year			5 Years			10 Years

Class A (Inception 2/1/06)¹
Net Asset Value²		12.14	%		22.64	%		8.17	%		9.81	%
With Maximum Sales Charge³		5.68			15.60			6.91			9.16

Class C (Inception 2/1/06)¹
Net Asset Value²		11.70			21.71			7.37			9.00
With CDSC⁴		10.70			20.71			7.37			9.00

Class Y (Inception 5/1/96)
Net Asset Value²		12.22			22.95			8.45			10.09

Comparative Performance
MSCI World Index		14.42			14.03			2.64			4.73
Citigroup World Government Bond Index		-1.11			7.29			7.31			7.40
Morningstar World Allocation Fund Avg.		8.57			11.84			4.51			6.82

* Formerly Loomis Sayles Global Markets Fund.

Class Y shares are not available for purchase by all investors.

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

3 |


Fund Composition	% of Net Assets as of 3/31/11
Common Stocks		67.7
Bonds and Notes		25.2
Preferred Stock		0.3
Bank Loans		0.0
Short-Term Investments and Other		6.8

Ten Largest Holdings	% of Net Assets as of 3/31/11
Apple, Inc.		4.1
Novo Nordisk A/S, Class B		2.6
ARM Holdings PLC		2.5
Siemens AG, (Registered)		2.4
Deere & Co.		2.1
Oracle Corp.		2.0
Baidu, Inc., Sponsored ADR		2.0
Estee Lauder Cos., Inc. (The), Class A		2.0
FMC Technologies, Inc.		1.8
Caterpillar, Inc.		1.7


Five Largest Industries	% of Net Assets as of 3/31/11
Machinery		8.0
Energy Equipment & Services		6.0
Treasuries		5.7
Internet Software & Services		5.1
Computers & Peripherals		4.1

Portfolio holdings and asset allocations will vary.

Expense Ratios

as stated in the most recent prospectus


Share Class	Gross Expense Ratio⁶			Net Expense Ratio⁷
A		1.29	%		1.25	%
C		2.04			2.00
Y		1.04			1.00

NOTES TO CHARTS

See	page 17 for a description of the indices.

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

2	At Net Asset Value (NAV) — does not reflect payment of sales charge at time of purchase.

3	With Maximum Sales Charge (MSC) — reflects maximum sales charge of 5.75% at time of purchase.

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

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

6	Before fee waivers and/or expense reimbursements.

7	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire 1/31/12. Contracts are reevaluated on an annual basis.

| 4

LOOMIS SAYLES GROWTH FUND

Management Discussion

Manager:

Aziz Hamzaogullari, CFA

Loomis, Sayles & Company, L.P.

Objective:

Long-term growth of capital

Strategy:

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

Fund Inception:

May 16, 1991

Symbols:


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

Market Conditions

Stocks staged an impressive rally over the six months ended March 31, 2011. Rising corporate profits and increasing evidence of a strengthening economy bolstered investor confidence, and the positive environment was favorable for companies across all capitalization ranges. Among large-cap stocks, growth shares outpaced value shares by a small margin.

Performance Results

For the six months ended March 31, 2011, Class A shares of Loomis Sayles Growth Fund returned 11.87% at net asset value. For the same period, the fund’s benchmark, the Russell 1000 Growth Index, rose 18.57%, while the average return of funds in the Morningstar Large Growth category was 17.88%.

Explanation of Fund Performance

The fund delivered solid double-digit gains for the period but lagged its benchmark. The fund had less exposure to energy stocks during a period in which oil prices shot up, in large part due to growing political unrest in the Middle East and North Africa. In addition, the fund’s focus on attractively priced, higher-quality companies was out of step during the period, as investors were attracted to more volatile, lower-quality companies that led the market rally. Stock selection in the healthcare and producer durables sectors also detracted from results, offsetting the positive impact of the fund’s stock selection in the consumer discretionary sector.

Relative to the benchmark, consumer discretionary was the only positively contributing sector for the time period. This strong performance was due primarily to advertising company Omnicom, the best performer for the period. We believe that an increasingly complex and changing landscape in the advertising market may create opportunities for Omnicom, including migration to digital marketing and improving measurement techniques. Other holdings that performed well included: oil service company Schlumberger, which benefited from the economic recovery and the rise in oil prices; software company Oracle, whose revenues were driven by database sales and an expansion in computer hardware; semiconductor manufacturer Altera; and biotechnology company Biogen Idec, which reported strong sales of its multiple sclerosis drug.

5 |

Despite the success in Biogen Idec, the fund’s overall healthcare results lagged. Pharmaceuticals companies Amgen, Novartis and Merck were notable detractors from the fund’s return. Amgen, a biotechnology company, came under pressure from concern about the durability of its Anemia Franchise and slower than expected uptake of new products. Switzerland-based Novartis underperformed because of worries about the effects of pending patent expirations of several products. Merck’s shares declined after the company stopped drug trials for one potential product and narrowed the scope of trials for a second product. In the producer durables area, the most notable laggard was global logistics company Expeditors International of Washington. Its share price declined after the company reported disappointing profit margins. An investment in technology giant Cisco Systems, which reported disappointing earnings margins because of increased spending in product research and development, also held back performance.

Outlook

At the end of the period, the fund had more exposure than the benchmark to the healthcare, financials and consumer staples sectors and less exposure to the energy, industrials and technology groups. These sector weights are the result of the stock selection process.

It is important to note that we do not manage the fund based on projections of macroeconomic trends. Our disciplined investment approach relies on fundamental and bottom-up research. Regardless of the current market environment, we search for what we believe are high-quality businesses with sustainable competitive advantages and profitable growth characteristics whose shares are trading at significant discounts to intrinsic values. We believe this discipline can limit the downside risks of losing capital and result in a diversified portfolio of companies with different fundamental drivers of return. Our approach may not produce the highest results in any one period, but we are confident that it is a prudent strategy for the long term. Because we take a long-term view on the fund’s investments, portfolio turnover tends to be relatively low.

What You Should Know:

Investments in the Fund are subject to a number of risks. Please see the “Principal Risks” section of the Funds prospectus. The purchase of Fund shares should be seen as a long-term investment.

| 6

LOOMIS SAYLES GROWTH FUND

Investment Results through March 31, 2011

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

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

March 31, 2001 through March 31, 2011

LOGO

Average Annual Returns — March 31, 2011⁵



	6 Months			1 Year			5 Years			10 Years

Class A (Inception 12/31/96)¹
Net Asset Value²		11.87	%		12.09	%		-2.12	%		1.34	%
With Maximum Sales Charge³		5.50			5.70			-3.27			0.74

Class B (Inception 9/12/03)¹
Net Asset Value²		11.70			11.48			-2.83			0.59
With CDSC⁴		6.70			6.48			-3.22			0.59

Class C (Inception 9/12/03)¹
Net Asset Value²		11.70			11.25			-2.83			0.59
With CDSC⁴		10.70			10.25			-2.83			0.59

Class Y (Inception 5/16/91)
Net Asset Value²		11.95			12.36			-1.71			1.67

Comparative Performance
Russell 1000 Growth Index		18.57			18.26			4.34			2.99
Morningstar Large Growth Fund Avg.		17.88			16.77			3.08			2.91

Class Y shares are not available for purchase by all investors.

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

7 |


Fund Composition	% of Net Assets as of 3/31/11
Common Stocks		98.8
Short-Term Investments and Other		1.2

Ten Largest Holdings	% of Net Assets as of 3/31/11
Google, Inc., Class A		6.1
Amazon.com, Inc.		5.7
Oracle Corp.		5.3
Visa, Inc., Class A		5.3
QUALCOMM, Inc.		4.9
Cisco Systems, Inc.		4.5
United Parcel Service, Inc., Class B		4.2
SEI Investments Co.		4.1
American Express Co.		4.0
Amgen, Inc.		3.8


Five Largest Industries	% of Net Assets as of 3/31/11
Software		11.0
Communications Equipment		9.4
Capital Markets		8.3
Air Freight & Logistics		7.7
Internet & Catalog Retail		7.4

Portfolio holdings and asset allocations will vary.

Expense Ratios

as stated in the most recent prospectus


Share Class	Gross Expense Ratio⁶			Net Expense Ratio⁷
A		1.20	%		1.20	%
B		1.95			1.95
C		1.95			1.95
Y		0.95			0.95

NOTES TO CHARTS

See	page 17 for a description of the indices.

2	At Net Asset Value (NAV) — does not reflect payment of sales charge at time of purchase.

3	With Maximum Sales Charge (MSC) — reflects maximum sales charge of 5.75% at time of purchase.

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

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

6	Before fee waivers and/or expense reimbursements.

7	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire 1/31/12. Contracts are reevaluated on an annual basis.

| 8

LOOMIS SAYLES MID CAP GROWTH FUND

Management Discussion

Manager:

Philip C. Fine, CFA

Loomis, Sayles & Company, L.P.

Objective:

Long-term growth of capital

Strategy:

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

Fund Inception:

December 31, 1996

Symbols:


Class A		LAGRX
Class C		LSACX
Class Y		LSAIX

Market Conditions

Despite upheavals in the Middle East, sharply rising oil prices and a series of disasters in Japan, gains in manufacturing, exports and retail sales helped dissipate fears of a double-dip recession during the six-month period ended March 31, 2011. The financial markets were shaken by rate hikes in key emerging markets, economic uncertainty in China and credit downgrades in several European countries. Through all this, the U.S. stock market shook off a brief correction and advanced strongly for the period.

Performance Results

For the six months ended March 31, 2011, Class A shares of Loomis Sayles Mid Cap Growth Fund returned 28.03% at net asset value. The fund outperformed its benchmark, the Russell Midcap Growth Index, which returned 22.97%. It also outdistanced the 22.60% average return of the funds in its peer group, the Morningstar Mid-Cap Growth category.

Explanation of Fund Performance

During a period that was generally strong for the U.S. stock market, the fund outperformed its benchmark by a significant margin. Investments in the technology, healthcare, consumer discretionary and energy sectors generally accounted for the fund’s solid gains. Within the technology sector, where the fund had an overweight position relative to its benchmark, Riverbed Technology, Acme Packet and Aruba Networks made significant contributions to return. In the consumer discretionary sector, lululemon athletica, a designer and retailer of women’s athletic apparel; Fossil, which designs and manufactures watches and accessories; and Netflix, the leader in providing movies and other entertainment content online and by mail, were outstanding performers. Lululemon was an out-of-index selection that generated outsized returns. The fund’s energy holdings were also strong contributors to return. A decision to own more shares of Concho Resources and Walter Energy paid off handsomely, as both stocks

generated returns that were substantially higher than the benchmark average.

9 |

The most disappointing stocks in the portfolio were Finisar, which designs and manufactures optical components for communications networks; Citrix Systems, an enterprise software company; and Eldorado Gold, an international mining company. All three stocks were sold. The only two sectors to lag the benchmark were consumer staples and materials. Even so, both sectors made a positive contribution to total return for the period. Within consumer staples, Green Mountain Coffee drove underperformance for the sector. The fund held the stock in late 2010 when it declined after the company issued disappointing earnings guidance. It rebounded early in 2011 when it announced a partnership with Starbucks, but we had sold most of our position and did not reap the benefits. The underperformance in materials can be attributed to several gold mining, copper and fertilizer stocks.

During the period, the fund employed derivatives to hedge several stocks that represented large positions in the portfolio or that were exposed to significant “event” risk — healthcare stocks, for example, where clinical trials were essential to performance. In most of these instances the underlying stocks continued to appreciate, so the hedges were a drag on performance. Nevertheless, we viewed them as valuable defensive measures for the overall portfolio.

Outlook

We believe that business leaders are becoming more convinced of the sustainability of this expansion and are planning accordingly. Profit margins are currently healthy as companies are operating with lean staffing, although employment growth has clearly turned up. Equity price-to-earnings multiples are lower, on average, than they have been in the past 25 years. Yet earnings growth is likely to continue to be strong for the next few quarters, even as comparisons become more difficult. While there will be no shortage of hurdles for investors in the coming months, we continue to believe that stocks can represent an attractive and timely opportunity for long-term investors.

What You Should Know

Investments in the Fund are subject to a number of risks. Please see the “Principal Risks” section of the Funds prospectus. The purchase of Fund shares should be seen as a long-term investment.

| 10

LOOMIS SAYLES MID CAP GROWTH FUND

Investment Results through March 31, 2011

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

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

March 31, 2001 through March 31, 2011

LOGO

Average Annual Returns — March 31, 2011⁵



	6 Months			1 Year			5 Years			10 Years

Class A (Inception 12/31/96)¹
Net Asset Value²		28.03	%		41.09	%		6.49	%		4.40	%
With Maximum Sales Charge³		20.67			32.95			5.24			3.78

Class C (Inception 2/2/09)¹
Net Asset Value²		27.57			40.04			5.66			3.59
With CDSC⁴		26.57			39.04			5.66			3.59

Class Y (Inception 12/31/96)
Net Asset Value²		28.21			41.41			6.76			4.67

Comparative Performance
Russell Midcap Growth Index		22.97			26.60			4.93			6.94
Morningstar Mid-Cap Growth Avg.		22.60			25.86			4.31			5.90

Class Y shares are not available for purchase by all investors.

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

11 |


Fund Composition	% of Net Assets as of 3/31/11
Common Stocks		97.2
Put Options		0.1
Short-Term Investments and Other		2.7
Ten Largest Holdings	% of Net Assets as of 3/31/11
Concho Resources, Inc.		3.1
Joy Global, Inc.		2.9
Fossil, Inc.		2.5
Priceline.com, Inc.		2.3
OpenTable, Inc.		2.3
Aruba Networks, Inc.		2.2
SINA Corp.		2.2
VeriFone Systems, Inc.		2.2
Alexion Pharmaceuticals, Inc.		2.1
Valeant Pharmaceuticals International, Inc.		2.1


Five Largest Industries	% of Net Assets as of 3/31/11
Internet Software & Services		9.2
Machinery		7.4
Oil, Gas & Consumable Fuels		6.2
Software		5.8
Textiles, Apparel & Luxury Goods		5.6

Portfolio holdings and asset allocations will vary.

Expense Ratios

as stated in the most recent prospectus


Share Class	Gross Expense Ratio⁶			Net Expense Ratio⁷
A		1.46	%		1.25	%
C		2.24			2.00
Y		1.22			1.00

NOTES TO CHARTS

See	page 17 for a description of the indices.

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

2	At Net Asset Value (NAV) — does not reflect payment of sales charge at time of purchase.

3	With Maximum Sales Charge (MSC) — reflects maximum sales charge of 5.75% at time of purchase.

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

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

6	Before fee waivers and/or expense reimbursements.

7	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire 1/31/12. Contracts are reevaluated on an annual basis.

| 12

LOOMIS SAYLES VALUE FUND

Management Discussion

Managers:

Arthur Barry, CFA

James L. Carroll, CFA

Warren N. Koontz, CFA, CIC

Loomis, Sayles & Company, L.P.

Objective:

Long-term growth of capital and income

Strategy:

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

Fund Inception:

May 13, 1991

Symbols:


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

Market Conditions

A recovering economy brought improved financial results for corporations over the past six months, with expanding cash flows and revenues brightening the outlook for future growth. Stock prices fed on this good news, moving higher over the period. Market participants were also encouraged by a more business-friendly tone in Washington.

Performance Results

For the six months ended March 31, 2011, Class A shares of Loomis Sayles Value Fund returned 19.87% at net asset value. The fund outperformed its benchmark, the Russell 1000 Value Index, which returned 17.68%. It also outperformed the 16.88% average return of the funds in its peer group, the Morningstar Large Value category.

Explanation of Fund Performance

Strong security selection, notably in the financial services and consumer discretionary sectors, accounted for the bulk of the fund’s performance advantage against its benchmark, with the balance coming as a result of sector allocation. The fund’s sector allocations are the result of its stock selection process.

In financial services, as Discover Financial emerged from recession-related credit difficulties, investors came to recognize its growth potential. A dividend increase further boosted Discover Financial’s performance. The fund reduced its underweight in financials by adding to Citigroup and Fifth Third Bancorp. In the consumer discretionary sector, the fund benefited from an overweight in the sector as well as from strong stock selection in automotive and media companies.

Although the fund’s energy holdings slightly underperformed the benchmark’s 43% energy sector return, the fund benefited from strong performances by Schlumberger, Hess, and ExxonMobil as oil and gas prices rose. Natural gas pipeline operator El Paso moved higher over the period thanks to rising prices and its strong exploration and production profile. El Paso is potentially well-positioned to expand volumes over the next several years.

13 |

Additionally, the sale of Owens Illinois shares shifted the portfolio from overweight to underweight in the materials and processing sector.

Results in technology and pharmaceuticals were disappointing. AOL’s shares moved higher on expectations of a merger with Yahoo, then fell when the rumors proved false. Shares have partly rebounded since. The management team believes AOL’s current strategy of focusing on premium content and high quality advertising could drive better results in the second half of this year. Shares of Cisco Systems, which sells Internet-related networking and other communications products, fell despite improving sales and revenue trends. Pharmaceutical giant Merck reported strong revenues and better-than-expected earnings early in the period. However, shares retreated when management backed off its long-range earnings forecasts. Behind management’s caution were industry pressures and a setback in trials for Vorapaxar, a clot-fighting drug that had been expected to yield large sales.

Outlook

The Federal Reserve Board’s (the Fed’s) Treasury purchase program designed to inject money into the economy, which is known as “QE2” (quantitative easing), is about to end. A new wave of purchases is not expected unless the economy takes an unexpected turn to the downside. That prospect is unlikely, given recent strong employment data. In fact, the employment figures for February and March were some of the best we have seen in several years. Our working assumption is that investors and corporate executives need to plan for somewhat higher energy and other commodity input costs in the months ahead. However, we anticipate 15% earnings growth for the S&P 500 Index in 2011, decelerating to 10% or so next year.

What You Should Know:

Investments in the Fund are subject to a number of risks. Please see the “Principal Risks” section of the Funds prospectus. The purchase of Fund shares should be seen as a long-term investment.

| 14

LOOMIS SAYLES VALUE FUND

Investment Results through March 31, 2011

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

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

March 31, 2001 through March 31, 2011

LOGO

Average Annual Returns — March 31, 2011⁵



	6 Months			1 Year			5 Years			10 Years

Class A (Inception 6/30/06)¹
Net Asset Value²		19.87	%		12.88	%		3.13	%		5.30	%
With Maximum Sales Charge³		13.00			6.37			1.91			4.68

Class B (Inception 6/1/07)¹
Net Asset Value²		19.39			11.98			2.33			4.40
With CDSC⁴		14.39			6.98			1.96			4.40

Class C (Inception 6/1/07)¹
Net Asset Value²		19.44			12.01			2.34			4.40
With CDSC⁴		18.44			11.01			2.34			4.40

Class Y (Inception 5/13/91)
Net Asset Value²		19.98			13.12			3.44			5.60

Admin Class (Inception 2/1/10)¹
Net Asset Value²		19.75			12.55			2.84			5.00

Comparative Performance
Russell 1000 Value Index		17.68			15.15			1.38			4.53
Morningstar Large Value Fund Avg.		16.88			14.16			1.65			4.13

Class Y shares are not available for purchase by all investors.

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

15 |


Fund Composition	% of Net Assets as of 3/31/11
Common Stocks		97.7
Short-Term Investments and Other		2.3

Ten Largest Holdings	% of Net Assets as of 3/31/11
General Electric Co.		2.7
JPMorgan Chase & Co.		2.7
ExxonMobil Corp.		2.7
Schlumberger Ltd.		2.3
El Paso Corp.		2.1
Oracle Corp.		2.1
Comcast Corp., Class A		2.0
Total SA, Sponsored ADR		2.0
Hess Corp.		1.9
Wells Fargo & Co.		1.9


Five Largest Industries	% of Net Assets as of 3/31/11
Oil, Gas & Consumable Fuels		11.1
Media		6.3
Commercial Banks		5.8
Diversified Financial Services		5.8
Pharmaceuticals		5.6

Portfolio holdings and asset allocations will vary.

Expense Ratios

as stated in the most recent prospectus


Share Class	Gross Expense Ratio⁶			Net Expense Ratio⁷
A		0.96	%		0.96	%
B		1.70			1.70
C		1.71			1.71
Y		0.71			0.71
Admin		1.29			1.29

NOTES TO CHARTS

See	page 17 for a description of the indices.

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

2	At Net Asset Value (NAV) — does not reflect payment of sales charge at time of purchase.

3	With Maximum Sales Charge (MSC) — reflects maximum sales charge of 5.75% at time of purchase.

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

6	Before fee waivers and/or expense reimbursements.

7	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire 1/31/12. Contracts are reevaluated on an annual basis.

| 16

ADDITIONAL INFORMATION

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

INDEX/AVERAGE DESCRIPTIONS:

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

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

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

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

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

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

PROXY VOTING INFORMATION

A description of the funds’ proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the funds’ website at ga.natixis.com; and on the Securities and Exchange Commission’s website at www.sec.gov. Information regarding how the funds voted proxies relating to portfolio securities during the 12-month period ended June 30, 2010 is available from the funds’ website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

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

17 |

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. These costs are described in more detail in the funds’ prospectus. The examples below are intended to help you understand the ongoing costs of investing in the funds and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table for each class shows the actual amount of fund expenses you would have paid on a $1,000 investment in the fund from October 1, 2010 through March 31, 2011. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual fund returns and expenses. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, $8,600 account value divided by $1,000 = 8.6) and multiply the result by the number in the Expenses Paid During the Period row as shown below for your class.

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

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


LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND**	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual		$1,000.00		$1,121.40		$6.61
Hypothetical (5% return before expenses)		$1,000.00		$1,018.70		$6.29
Class C
Actual		$1,000.00		$1,117.00		$10.56
Hypothetical (5% return before expenses)		$1,000.00		$1,014.96		$10.05
Class Y
Actual		$1,000.00		$1,122.20		$5.29
Hypothetical (5% return before expenses)		$1,000.00		$1,019.95		$5.04

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

**	Formerly Loomis Sayles Global Markets Fund.

| 18


LOOMIS SAYLES GROWTH FUND	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual		$1,000.00		$1,118.70		$6.23
Hypothetical (5% return before expenses)		$1,000.00		$1,019.05		$5.94
Class B
Actual		$1,000.00		$1,117.00		$10.19
Hypothetical (5% return before expenses)		$1,000.00		$1,015.31		$9.70
Class C
Actual		$1,000.00		$1,117.00		$10.19
Hypothetical (5% return before expenses)		$1,000.00		$1,015.31		$9.70
Class Y
Actual		$1,000.00		$1,119.50		$4.91
Hypothetical (5% return before expenses)		$1,000.00		$1,020.29		$4.68

Expenses are equal to the Fund’s annualized expense ratio: 1.18%, 1.93%, 1.93% and 0.93% for Class A, B, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).


LOOMIS SAYLES MID CAP GROWTH FUND	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual		$1,000.00		$1,280.30		$7.11
Hypothetical (5% return before expenses)		$1,000.00		$1,018.70		$6.29
Class C
Actual		$1,000.00		$1,275.70		$11.35
Hypothetical (5% return before expenses)		$1,000.00		$1,014.96		$10.05
Class Y
Actual		$1,000.00		$1,282.10		$5.69
Hypothetical (5% return before expenses)		$1,000.00		$1,019.95		$5.04

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

19 |


LOOMIS SAYLES VALUE FUND	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual	$	1,000.00	$	1,198.70	$	5.21
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.19	$	4.78
Class B
Actual	$	1,000.00	$	1,193.90	$	9.30
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.45	$	8.55
Class C
Actual	$	1,000.00	$	1,194.40	$	9.30
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.45	$	8.55
Class Y
Actual	$	1,000.00	$	1,199.80	$	3.84
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.44	$	3.53
Admin Class
Actual	$	1,000.00	$	1,197.50	$	6.25
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.25	$	5.74

Expenses are equal to the Fund’s annualized expense ratio: 0.95%, 1.70%, 1.70%, 0.70% and 1.14% for Class A, B, C, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

| 20

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund*


Shares		Description	Value (†)

	Common Stocks — 67.7% of Net Assets
		Belgium — 1.0%
	80,420	Anheuser-Busch InBev NV	$	4,584,887

		Brazil — 3.9%
	172,800	Cia Hering		3,175,206
	168,622	Embraer SA, ADR		5,597,407
	305,500	Mills Estruturas e Servicos de Engenharia SA		3,358,788
	209,900	Natura Cosmeticos SA		5,913,944

				18,045,345

		British Virgin Islands — 0.6%
	87,403	Mail.ru Group Ltd., GDR, 144A(b)		2,621,216

		Canada — 0.1%
	9,996	Valeant Pharmaceuticals International, Inc.		497,901

		Cayman Islands — 4.9%
	68,734	Baidu, Inc., Sponsored ADR(b)		9,472,233
	66,012	SINA Corp.(b)		7,065,924
	2,304,000	Wynn Macau Ltd.		6,443,833

				22,981,990

		Chile — 2.2%
	71,368	Banco Santander Chile, ADR		6,191,174
	390,962	S.A.C.I. Falabella		3,982,058

				10,173,232

		Denmark — 2.6%
	96,211	Novo Nordisk A/S, Class B		12,082,426

		Germany — 5.0%
	85,364	Bayerische Motoren Werke AG		7,087,240
	68,424	Daimler AG, (Registered)(b)		4,821,322
	82,592	Siemens AG, (Registered)		11,297,631

				23,206,193

		Hong Kong — 0.7%
	717,000	Hang Lung Properties Ltd.		3,135,506

		Italy — 1.4%
	126,103	Saipem SpA		6,699,111

		Japan — 3.7%
	39,000	FANUC Ltd.		5,895,119
	388,000	Mitsubishi Electric Corp.		4,566,205
	166,900	Softbank Corp.		6,650,015

				17,111,339

		Korea — 2.6%
	15,888	Hyundai Heavy Industries Co. Ltd.		7,492,290
	11,373	LG Chem Ltd.		4,758,585

				12,250,875

See accompanying notes to financial statements.

21 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Shares		Description	Value (†)

		Mexico — 0.8%
	1,767,300	Genomma Lab Internacional SA de CV, Class B(b)	$	3,996,853

		Netherlands Antilles — 1.0%
	51,393	Schlumberger Ltd.		4,792,911

		Sweden — 1.3%
	230,490	Atlas Copco AB, Class A		6,121,032

		Switzerland — 0.8%
	8,632	Swatch Group AG (The)		3,808,947

		United Kingdom — 6.8%
	210,253	Antofagasta PLC		4,583,282
	1,252,184	ARM Holdings PLC		11,619,386
	411,255	Burberry Group PLC		7,745,977
	308,057	Standard Chartered PLC		7,990,648

				31,939,293

		United States — 28.3%
	90,404	Acme Packet, Inc.(b)		6,415,068
	131,932	American Express Co.		5,963,326
	54,395	Apple, Inc.(b)		18,953,938
	71,797	Caterpillar, Inc.		7,994,596
	101,774	Deere & Co.		9,860,883
	1,679	Dex One Corp.(b)		8,126
	96,007	Estee Lauder Cos., Inc. (The), Class A		9,251,235
	88,952	FMC Technologies, Inc.(b)		8,404,185
	8,183	Google, Inc., Class A(b)		4,796,956
	955	Hawaiian Telcom Holdco, Inc.(b)		25,069
	61,708	Jones Lang LaSalle, Inc.		6,154,756
	53,714	Lululemon Athletica, Inc.(b)		4,783,232
	100,632	National Oilwell Varco, Inc.		7,977,099
	26,433	NetFlix, Inc.(b)		6,273,344
	286,906	Oracle Corp.		9,574,053
	30,975	Precision Castparts Corp.		4,558,900
	14,422	Priceline.com, Inc.(b)		7,303,878
	95,846	QUALCOMM, Inc.		5,255,236
	57,306	Salesforce.com, Inc.(b)		7,654,935
	299	SuperMedia, Inc.(b)		1,866
	26,818	Vertex Pharmaceuticals, Inc.(b)		1,285,387

				132,496,068

		Total Common Stocks (Identified Cost $250,917,619)		316,545,125

See accompanying notes to financial statements.

| 22

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Principal Amount (‡)		Description	Value (†)

	Bonds and Notes — 25.2%
	Non-Convertible Bonds — 23.7%
		Argentina — 0.3%
$	611,447	Argentina Government International Bond, 8.280%, 12/31/2033	$	545,105
	190,000	Pan American Energy LLC, 7.875%, 5/07/2021, 144A		204,497
	570,000	Transportadora de Gas del Sur SA, 7.875%, 5/14/2017, 144A		562,875

				1,312,477

		Australia — 0.2%
	500,000	Macquarie Bank Ltd., 6.625%, 4/07/2021, 144A		499,025
	250,000	New South Wales Treasury Corp., 6.000%, 5/01/2012, (AUD)		261,424
	155,000	Sydney Airport Finance Co., 5.125%, 2/22/2021, 144A		151,713

				912,162

		Bermuda — 0.0%
	100,000	Noble Group Ltd., 6.750%, 1/29/2020, 144A		107,000

		Brazil — 0.7%
	200,000	Banco Nacional de Desenvolvimento Economico e Social, 6.500%, 6/10/2019, 144A		218,000
	400,000	Banco Santander Brasil, 4.500%, 4/06/2015, 144A		406,871
	1,615,178(††)	Brazil Notas do Tesouro Nacional, Series B, 6.000%, 8/15/2014, (BRL)		975,234
	484,554(††)	Brazil Notas do Tesouro Nacional, Series B, 6.000%, 5/15/2015, (BRL)		291,574
	1,800,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		1,096,990
	129,000	Telemar Norte Leste SA, 5.500%, 10/23/2020, 144A		126,743

				3,115,412

		Canada — 0.6%
	2,265,000	Canadian Government, 3.000%, 12/01/2015, (CAD)		2,370,973
	180,000	Corus Entertainment, Inc., 7.250%, 2/10/2017, 144A, (CAD)		198,195
	50,000	Nortel Networks Ltd., 6.875%, 9/01/2023(c)		13,000
	100,000	Pacific Rubiales Energy Corp., 8.750%, 11/10/2016, 144A		114,250
	100,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		105,609

				2,802,027

		Cayman Islands — 0.9%
	200,000	Embraer Overseas Ltd., 6.375%, 1/24/2017		215,500
	300,000	Fibria Overseas Finance Ltd., 6.750%, 3/03/2021, 144A		309,750
	119,000	Fibria Overseas Finance Ltd., 7.500%, 5/04/2020, 144A		129,115
	100,000	Hutchison Whampoa International Ltd., 7.625%, 4/09/2019, 144A		119,679
	100,000	LPG International, Inc., 7.250%, 12/20/2015		110,000
	700,000	Marfrig Overseas Ltd., 9.500%, 5/04/2020, 144A		729,750
	170,000	Marfrig Overseas Ltd., 9.625%, 11/16/2016, 144A		180,200
	200,000	MBPS Finance Co., 11.250%, 11/15/2015, 144A		197,000
	200,000	Odebrecht Drilling Norbe VIII/IX Ltd., 6.350%, 6/30/2021, 144A		210,750
	300,000	Odebrecht Finance Ltd., 6.000%, 4/05/2023, 144A		297,000
	200,000	Odebrecht Finance Ltd., 7.000%, 4/21/2020, 144A		218,700
	320,000	Petrobras International Finance Co., 5.875%, 3/01/2018		338,960
	300,000	Petrobras International Finance Co., 6.875%, 1/20/2040		314,161
	536,000	Vale Overseas Ltd., 6.875%, 11/21/2036		570,765

See accompanying notes to financial statements.

23 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Principal Amount (‡)		Description	Value (†)

		Cayman Islands — continued
$	200,000	Voto-Votorantim Ltd., 6.750%, 4/05/2021, 144A	$	212,000

				4,153,330

		Chile — 0.2%
	250,000,000	Banco Santander Chile, 6.500%, 9/22/2020, 144A, (CLP)		481,524
	185,000	Celulosa Arauco y Constitucion SA, 5.000%, 1/21/2021, 144A		182,537
	250,000	E.CL SA, 5.625%, 1/15/2021, 144A		250,367

				914,428

		Colombia — 0.3%
	450,000,000	Emgesa SA ESP, 8.750%, 1/25/2021, 144A, (COP)		253,409
	1,430,000,000	Empresas Publicas de Medellin ESP, 8.375%, 2/01/2021, 144A, (COP)		789,461
	200,000,000	Republic of Colombia, 7.750%, 4/14/2021, (COP)		115,266
	40,000	Republic of Colombia, 8.125%, 5/21/2024		50,660

				1,208,796

		Croatia — 0.1%
	300,000	Croatia Government International Bond, 6.375%, 3/24/2021, 144A		300,375

		France — 0.1%
	150,000	Lafarge SA, EMTN, 5.375%, 6/26/2017, (EUR)		209,757
	240,000	Veolia Environnement, EMTN, 4.000%, 2/12/2016, (EUR)		345,588
	25,000	Veolia Environnement, EMTN, 5.125%, 5/24/2022, (EUR)		36,496

				591,841

		Germany — 0.4%
	975,000	Bundesrepublik Deutschland, 3.000%, 7/04/2020, (EUR)(d)		1,346,147
	400,000	Republic of Germany, 4.000%, 4/13/2012, (EUR)		581,874

				1,928,021

		Hungary — 0.1%
	400,000	Hungary Government International Bond, 6.375%, 3/29/2021		400,400

		India — 0.1%
	200,000	Canara Bank Ltd., (fixed rate to 11/28/2016, variable rate thereafter), 6.365%, 11/28/2021		199,241
	100,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		99,500

				298,741

		Indonesia — 0.2%
	200,000	Adaro Indonesia PT, 7.625%, 10/22/2019, 144A		221,000
	3,500,000,000	Indonesia Government International Bond, 9.500%, 7/15/2023, (IDR)		429,051
	1,500,000,000	Indonesia Government International Bond, 11.500%, 9/15/2019, (IDR)		209,130

				859,181

		Italy — 0.1%
	250,000	Finmeccanica SpA, EMTN, 4.875%, 3/24/2025, (EUR)		334,753
	100,000	Telecom Italia SpA, EMTN, 5.375%, 1/29/2019, (EUR)		142,287

				477,040

See accompanying notes to financial statements.

| 24

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Principal Amount (‡)		Description	Value (†)

		Jersey — 0.0%
	100,000	WPP PLC, 6.000%, 4/04/2017, (GBP)	$	170,948

		Korea — 0.2%
	8,000,000	Export-Import Bank of Korea, 4.000%, 11/26/2015, 144A, (PHP)		176,774
	400,000,000	Korea Treasury Bond, 5.000%, 9/10/2014, (KRW)		375,819
	260,000	SK Broadband Co. Ltd., 7.000%, 2/01/2012, 144A		270,400
	140,000	SK Telecom Co. Ltd., 6.625%, 7/20/2027, 144A		155,221

				978,214

		Luxembourg — 0.1%
	100,000	CSN Resources SA, 6.500%, 7/21/2020, 144A		106,500
	200,000	Gazprom Via Gaz Capital SA, 5.092%, 11/29/2015, 144A		208,740
	125,000	Telecom Italia Capital SA, 6.000%, 9/30/2034		113,107
	10,000	Telecom Italia Capital SA, 6.375%, 11/15/2033		9,437

				437,784

		Mexico — 0.7%
	195,000	Axtel SAB de CV, 7.625%, 2/01/2017, 144A		183,300
	145,000	Axtel SAB de CV, 9.000%, 9/22/2019, 144A		139,200
	200,000	BBVA Bancomer SA, 6.500%, 3/10/2021, 144A		197,632
	200,000	Corporacion GEO SAB de CV, 9.250%, 6/30/2020, 144A		222,500
	295,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		303,850
	74,000(†††)	Mexican Fixed Rate Bonds, Series M-10, 8.000%, 12/17/2015, (MXN)		648,984
	116,000(†††)	Mexican Fixed Rate Bonds, Series M-10, 8.500%, 12/13/2018, (MXN)		1,044,390
	100,000	Mexichem SAB de CV, 8.750%, 11/06/2019, 144A		114,750
	330,000	Petroleos Mexicanos, 8.000%, 5/03/2019		396,330
	200,000	Urbi Desarrollos Urbanos SAB de CV, 9.500%, 1/21/2020, 144A		224,000

				3,474,936

		Netherlands — 0.1%
	50,000	British American Tobacco Holdings BV, 4.000%, 7/07/2020, (EUR)		68,360
	200,000	Indosat Palapa Co. BV, 7.375%, 7/29/2020, 144A		219,760
	200,000	Listrindo Capital BV, 9.250%, 1/29/2015, 144A		221,262
	100,000	Myriad International Holding BV, 6.375%, 7/28/2017, 144A		105,620
	50,000	OI European Group BV, 6.875%, 3/31/2017, 144A, (EUR)		72,454

				687,456

		New Zealand — 0.3%
	1,300,000	New Zealand Government Bond, 6.000%, 12/15/2017, (NZD)		1,037,716
	700,000	New Zealand Government Bond, 6.500%, 4/15/2013, (NZD)		565,809

				1,603,525

		Norway — 0.4%
	3,335,000	Norwegian Government, 4.250%, 5/19/2017, (NOK)		627,371
	6,360,000	Norwegian Government, 4.500%, 5/22/2019, (NOK)		1,211,058

				1,838,429

		Peru — 0.0%
	450,000	Republic of Peru, 7.840%, 8/12/2020, 144A, (PEN)		172,076

See accompanying notes to financial statements.

25 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Principal Amount (‡)		Description	Value (†)

		Philippines — 0.1%
	30,000,000	Philippine Government International Bond, 6.250%, 1/14/2036, (PHP)	$	652,915

		Poland — 0.0%
	95,000	Poland Government International Bond, 3.000%, 9/23/2014, (CHF)		104,671

		Qatar — 0.1%
	100,000	Qatar Government International Bond, 4.000%, 1/20/2015, 144A		103,250
	250,000	Ras Laffan Liquefied Natural Gas Co. Ltd. III, 5.500%, 9/30/2014, 144A		268,303

				371,553

		Singapore — 0.6%
	1,400,000	Singapore Government Bond, 1.625%, 4/01/2013, (SGD)		1,136,961
	1,555,000	Singapore Government Bond, 2.250%, 7/01/2013, (SGD)		1,284,787
	150,000	STATS ChipPAC Ltd., 7.500%, 8/12/2015, 144A		163,500

				2,585,248

		South Africa — 0.3%
	450,000	Edcon Proprietary Ltd., 4.423%, 6/15/2014, (EUR)(e)		545,268
	130,000	Edcon Proprietary Ltd., 4.423%, 6/15/2014, 144A, (EUR)(e)		157,522
	285,000	Republic of South Africa, EMTN, 4.500%, 4/05/2016, (EUR)		409,455
	400,000	Transnet Ltd., 4.500%, 2/10/2016, 144A		408,343

				1,520,588

		Supranationals — 0.3%
	305,000	European Investment Bank, 2.375%, 7/10/2020, (CHF)		338,400
	47,250,000	Inter-American Development Bank, EMTN, 4.750%, 1/10/2014, (INR)		1,030,293

				1,368,693

		Sweden — 0.2%
	2,210,000	Sweden Government Bond, 5.000%, 12/01/2020, (SEK)		396,910
	3,020,000	Sweden Government Bond, 5.500%, 10/08/2012, (SEK)(d)		500,758

				897,668

		Thailand — 0.1%
	330,000	True Move Co. Ltd., 10.375%, 8/01/2014		356,400
	100,000	True Move Co. Ltd., 10.375%, 8/01/2014, 144A		108,000

				464,400

		Turkey — 0.1%
	200,000	Akbank TAS, 5.125%, 7/22/2015, 144A		200,760
	619,871	Republic of Turkey, 4.000%, 4/29/2015, (TRY)		431,485

				632,245

		United Arab Emirates — 0.5%
	400,000	Abu Dhabi National Energy Co., 6.500%, 10/27/2036, 144A		382,000
	400,000	Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A		440,500
	500,000	DP World Ltd., 6.850%, 7/02/2037, 144A		460,000
	300,000	Dubai Electricity & Water Authority, 6.375%, 10/21/2016, 144A		302,250
	200,000	Dubai Electricity & Water Authority, 8.500%, 4/22/2015, 144A		217,000
	250,000	Mubadala Development Co., GMTN, 7.625%, 5/06/2019, 144A		290,414

				2,092,164

See accompanying notes to financial statements.

| 26

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Principal Amount (‡)		Description	Value (†)

		United Kingdom — 0.5%
	410,000,000	Barclays Bank PLC, EMTN, 3.680%, 8/20/2015, (KRW)	$	364,921
	100,000	BAT International Finance PLC, EMTN, 5.375%, 6/29/2017, (EUR)		151,519
	150,000	British Telecommunications PLC, 5.750%, 12/07/2028, (GBP)		231,077
	60,000	BSKYB Finance UK PLC, 5.750%, 10/20/2017, (GBP)		102,837
	150,000	Imperial Tobacco Finance PLC, EMTN, 6.250%, 12/04/2018, (GBP)		260,407
	100,000	Rexam PLC, EMTN, 4.375%, 3/15/2013, (EUR)		144,458
	250,000	Standard Chartered Bank, Series 17, EMTN, 5.875%, 9/26/2017, (EUR)		366,580
	300,000	United Kingdom Treasury, 5.250%, 6/07/2012, (GBP)		505,073

				2,126,872

		United States — 14.7%
	155,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		133,300
	975,000	Alcoa, Inc., 5.900%, 2/01/2027		959,268
	257,000	Ally Financial, Inc., 6.750%, 12/01/2014		270,814
	60,000	Ally Financial, Inc., 6.875%, 8/28/2012		63,000
	63,000	Ally Financial, Inc., 7.000%, 2/01/2012		64,969
	55,000	Ally Financial, Inc., 7.500%, 12/31/2013		59,194
	129,000	Ally Financial, Inc., 8.000%, 12/31/2018		138,514
	1,946,000	Ally Financial, Inc., 8.000%, 11/01/2031		2,121,140
	60,000	Arrow Electronics, Inc., 6.875%, 7/01/2013		65,484
	31,298	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 7/02/2015		30,985
	145,000	Avnet, Inc., 6.000%, 9/01/2015		155,753
	200,000	Bank of America Corp., (fixed rate to 5/06/2014, variable rate thereafter), 4.750%, 5/06/2019, (EUR)		266,982
	15,000	Boston Scientific Corp., 5.125%, 1/12/2017		15,343
	5,000	Boston Scientific Corp., 5.450%, 6/15/2014		5,336
	15,000	Boston Scientific Corp., 6.400%, 6/15/2016		16,355
	60,000	Boston Scientific Corp., 7.000%, 11/15/2035		61,274
	700,000	Capital One Multi-Asset Execution Trust, Series 2005-A10, Class A, 0.335%, 9/15/2015(e)		696,670
	2,335,000	Capital One Multi-Asset Execution Trust, Series 2006-A5, Class A5, 0.315%, 1/15/2016(e)		2,326,260
	15,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		16,219
	75,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		81,000
	41,776	CIT Group, Inc., 7.000%, 5/01/2013		42,560
	119,429	CIT Group, Inc., 7.000%, 5/01/2014		121,668
	119,429	CIT Group, Inc., 7.000%, 5/01/2015		120,474
	199,049	CIT Group, Inc., 7.000%, 5/01/2016		199,298
	278,673	CIT Group, Inc., 7.000%, 5/01/2017		279,021
	120,000	Citibank Credit Card Issuance Trust, Series 2001-A4, Class A4, 5.375%, 4/10/2013, (EUR)		170,144
	300,000	Comcast Corp., 5.650%, 6/15/2035		282,001
	776,526	Continental Airlines Pass Through Trust, Series 1999-1, Class B, 6.795%, 2/02/2020		760,995
	190,000	CSX Corp., 6.250%, 3/15/2018		216,712
	265,000	Cummins, Inc., 5.650%, 3/01/2098		214,309
	160,000	Cummins, Inc., 7.125%, 3/01/2028		177,316
	290,939	Delta Air Lines Pass Through Trust, Series 2007-1, Class B, 8.021%, 2/10/2024		300,395

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Principal Amount (‡)		Description	Value (†)

		United States — continued
$	279,562	Delta Air Lines Pass Through Trust, Series 2007-1, Class C, 8.954%, 8/10/2014	$	290,045
	42,000	Dillard’s, Inc., 6.625%, 1/15/2018		41,370
	50,000	Dillard’s, Inc., 7.000%, 12/01/2028		44,500
	8,000	Dillard’s, Inc., 7.750%, 7/15/2026		7,680
	250,000	Exelon Corp., 4.900%, 6/15/2015		262,724
	150,000	Foot Locker, Inc., 8.500%, 1/15/2022		151,500
	25,000	Ford Motor Co., 6.375%, 2/01/2029		23,619
	50,000	Ford Motor Co., 6.625%, 2/15/2028		48,549
	2,105,000	Ford Motor Co., 6.625%, 10/01/2028		2,042,959
	40,000	Ford Motor Co., 7.125%, 11/15/2025		38,836
	835,000	Ford Motor Co., 7.450%, 7/16/2031		903,979
	5,000	Ford Motor Co., 7.500%, 8/01/2026		5,020
	2,250,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		2,428,803
	845,000	Ford Motor Credit Co. LLC, 7.000%, 4/15/2015		914,650
	905,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		1,027,340
	80,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016		85,000
	45,000	General Electric Capital Corp., 5.625%, 5/01/2018		48,650
	205,000	General Electric Capital Corp., MTN, 5.875%, 1/14/2038		202,391
	900,000	General Electric Capital Corp., Series A, GMTN, 7.625%, 12/10/2014, (NZD)		741,587
	750,000	General Electric Capital Corp., Series A, MTN, 4.875%, 3/04/2015		808,658
	3,375,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		3,526,875
	35,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		38,456
	525,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		599,812
	405,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		489,038
	200,000	Gerdau Holdings, Inc., 7.000%, 1/20/2020, 144A		221,500
	455,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		458,926
	50,000	Goldman Sachs Group, Inc. (The), 6.875%, 1/18/2038, (GBP)		80,002
	165,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		155,100
	20,000	HCA, Inc., 5.750%, 3/15/2014		20,375
	90,000	HCA, Inc., 6.375%, 1/15/2015		91,800
	225,000	HCA, Inc., 7.050%, 12/01/2027		200,250
	245,000	HCA, Inc., 7.190%, 11/15/2015		246,225
	90,000	HCA, Inc., 7.500%, 12/15/2023		85,050
	250,000	HCA, Inc., 7.500%, 11/06/2033		229,375
	1,295,000	HCA, Inc., 7.690%, 6/15/2025		1,233,487
	395,000	HCA, Inc., 8.360%, 4/15/2024		395,000
	195,000	HCA, Inc., MTN, 7.580%, 9/15/2025		183,788
	75,000	HCA, Inc., MTN, 7.750%, 7/15/2036		70,125
	470,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		500,205
	110,000	Incitec Pivot Finance LLC, 6.000%, 12/10/2019, 144A		115,261
	80,000	International Lease Finance Corp., 8.250%, 12/15/2020		87,700
	250,000	iStar Financial, Inc., 5.150%, 3/01/2012		248,125
	95,000	iStar Financial, Inc., 5.500%, 6/15/2012		94,050
	70,000	iStar Financial, Inc., 5.850%, 3/15/2017		61,075
	405,000	iStar Financial, Inc., 5.875%, 3/15/2016		360,450
	145,000	iStar Financial, Inc., 6.050%, 4/15/2015		132,675
	985,000	iStar Financial, Inc., 8.625%, 6/01/2013		999,775

See accompanying notes to financial statements.

| 28

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Principal Amount (‡)		Description	Value (†)

		United States — continued
$	35,000	iStar Financial, Inc., Series B, 5.700%, 3/01/2014	$	32,725
	950,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		900,125
	5,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		5,038
	64,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		57,680
	15,000	J.C. Penney Corp., Inc., 7.125%, 11/15/2023		15,525
	5,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		4,475
	95,000	Jefferies Group, Inc., 6.250%, 1/15/2036		87,810
	375,000	Jefferies Group, Inc., 8.500%, 7/15/2019		442,387
	260,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016		193,700
	15,000	K. Hovnanian Enterprises, Inc., 6.375%, 12/15/2014		13,613
	15,000	Lennar Corp., Series B, 5.500%, 9/01/2014		15,000
	1,090,000	Lennar Corp., Series B, 5.600%, 5/31/2015		1,073,650
	55,000	Lennar Corp., Series B, 6.500%, 4/15/2016		55,000
	235,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		233,238
	10,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		10,225
	30,000	Level 3 Financing, Inc., 9.375%, 4/01/2019, 144A		29,025
	310,000	Momentive Specialty Chemicals, Inc., 7.875%, 2/15/2023		254,200
	410,000	Momentive Specialty Chemicals, Inc., 8.375%, 4/15/2016		381,300
	230,000	Morgan Stanley, 5.375%, 11/14/2013, (GBP)		385,789
	2,500,000	Morgan Stanley, 5.750%, 1/25/2021		2,523,240
	500,000	Morgan Stanley, GMTN, 7.625%, 3/03/2016, (AUD)		520,992
	500,000	New Albertson’s, Inc., 7.450%, 8/01/2029		395,000
	50,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		36,250
	15,000	News America, Inc., 6.400%, 12/15/2035		15,433
	935,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		938,506
	30,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		30,225
	250,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027(f)		127,500
	35,000	Nortel Networks Capital Corp., 7.875%, 6/15/2026(c)		25,725
	50,000	Ohio Edison Co., 6.875%, 7/15/2036		54,153
	565,000	Owens Corning, Inc., 6.500%, 12/01/2016		615,173
	535,000	Owens Corning, Inc., 7.000%, 12/01/2036		536,837
	150,000	Owens-Brockway Glass Container, Inc., 6.750%, 12/01/2014, (EUR)		215,769
	40,000	Owens-Illinois, Inc., 7.800%, 5/15/2018		43,650
	47,000	Pulte Group, Inc., 5.200%, 2/15/2015		46,648
	540,000	Pulte Group, Inc., 6.000%, 2/15/2035		422,550
	695,000	Pulte Group, Inc., 6.375%, 5/15/2033		564,688
	1,335,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,361,700
	650,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		645,125
	400,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		416,000
	60,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		63,900
	560,000	Qwest Corp., 6.875%, 9/15/2033		560,700
	115,000	Qwest Corp., 7.250%, 9/15/2025		122,475
	80,000	Reynolds American, Inc., 6.750%, 6/15/2017		91,484
	20,000	Reynolds American, Inc., 7.250%, 6/15/2037		21,167
	1,600(††††)	SLM Corp., 6.000%, 12/15/2043		33,628
	120,000	SLM Corp., MTN, 5.050%, 11/14/2014		121,131
	35,000	SLM Corp., MTN, 5.125%, 8/27/2012		36,121

See accompanying notes to financial statements.

29 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Principal Amount (‡)		Description	Value (†)

		United States — continued
$	228,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013	$	236,001
	10,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		9,397
	115,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		119,617
	75,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		77,774
	265,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		226,561
	625,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		700,000
	100,000	Springleaf Finance Corp., MTN, 5.750%, 9/15/2016		90,000
	100,000	Springleaf Finance Corp., Series H, MTN, 5.375%, 10/01/2012		98,375
	300,000	Springleaf Finance Corp., Series I, MTN, 4.875%, 7/15/2012		294,750
	400,000	Springleaf Finance Corp., Series I, MTN, 5.850%, 6/01/2013		391,000
	200,000	Springleaf Finance Corp., Series J, MTN, 5.900%, 9/15/2012		198,000
	400,000	Springleaf Finance Corp., Series J, MTN, 6.900%, 12/15/2017		365,500
	294,000	Sprint Capital Corp., 6.875%, 11/15/2028		271,215
	420,000	Sprint Capital Corp., 6.900%, 5/01/2019		433,650
	110,000	Sprint Capital Corp., 8.750%, 3/15/2032		117,013
	26,000	Sprint Nextel Corp., 6.000%, 12/01/2016		26,098
	265,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		219,619
	250,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		352,345
	50,000	Toll Brothers Finance Corp., 5.150%, 5/15/2015		51,036
	375,000	Toys R Us, Inc., 7.375%, 10/15/2018		375,938
	3,150,000	TXU Corp., Series P, 5.550%, 11/15/2014		2,063,250
	2,570,000	TXU Corp., Series Q, 6.500%, 11/15/2024		1,201,475
	30,000	TXU Corp., Series R, 6.550%, 11/15/2034		13,800
	3,440,000	U.S. Treasury Bond, 4.250%, 11/15/2040		3,290,037
	1,100,000	U.S. Treasury Note, 0.750%, 3/31/2013		1,099,142
	7,250,000	U.S. Treasury Note, 0.875%, 1/31/2012		7,285,967
	462,710	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		529,803
	770,000	United States Steel Corp., 6.650%, 6/01/2037		708,400
	50,000	USG Corp., 6.300%, 11/15/2016		47,000
	230,000	USG Corp., 9.750%, 1/15/2018		240,925
	5,000	Verizon Maryland, Inc., Series B, 5.125%, 6/15/2033		4,513
	140,000	Verizon New York, Inc., Series B, 7.375%, 4/01/2032		157,072
	110,000	Verizon Pennsylvania, Inc., 6.000%, 12/01/2028		102,430
	85,000	Wells Fargo & Co., 4.625%, 11/02/2035, (GBP)		118,755
	100,000	Wells Fargo & Co., Series F, EMTN, 4.875%, 11/29/2035, (GBP)		132,643
	60,000	Weyerhaeuser Co., 6.950%, 10/01/2027		59,710
	315,000	Weyerhaeuser Co., 7.375%, 3/15/2032		332,163
	24,000	Xerox Capital Trust I, 8.000%, 2/01/2027		24,420
	125,000	Xerox Corp., 6.750%, 2/01/2017		143,520
	20,000	Xerox Corp., MTN, 7.200%, 4/01/2016		22,975

				68,483,277

		Uruguay — 0.1%
	3,776,920	Uruguay Government International Bond, 3.700%, 6/26/2037, (UYU)		199,834
	4,300,057	Uruguay Government International Bond, 5.000%, 9/14/2018, (UYU)		265,003

				464,837

		Total Non-Convertible Bonds (Identified Cost $102,675,822)		110,509,730

See accompanying notes to financial statements.

| 30

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Principal Amount (‡)		Description	Value (†)

	Convertible Bonds — 1.4%
		United States — 1.4%
$	125,000	Ford Motor Co., 4.250%, 11/15/2016	$	226,563
	745,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(g)		718,925
	1,125,000	Intel Corp., 3.250%, 8/01/2039		1,323,281
	430,000	iStar Financial, Inc., 0.803%, 10/01/2012(e)		392,375
	365,000	Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		364,544
	195,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		192,319
	215,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(f)		250,206
	200,000	NII Holdings, Inc., 3.125%, 6/15/2012		201,000
	1,545,000	Old Republic International Corp., 3.750%, 3/15/2018		1,550,794
	375,000	Omnicare, Inc., 3.750%, 12/15/2025		483,281
	610,000	Owens-Brockway Glass Container, Inc., 3.000%, 6/01/2015, 144A		618,387
	90,000	Trinity Industries, Inc., 3.875%, 6/01/2036		98,100
	80,000	Valeant Pharmaceuticals International, 4.000%, 11/15/2013		316,000

		Total Convertible Bonds (Identified Cost $5,964,712)		6,735,775


	Municipals — 0.1%
		United States — 0.1%
	415,000	State of Illinois, 5.100%, 6/01/2033		336,511
	135,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(f)		84,908

		Total Municipals (Identified Cost $447,528)		421,419

		Total Bonds and Notes (Identified Cost $109,088,062)		117,666,924


	Bank Loans — 0.0%
		United States — 0.0%
	28,697	Hawaiian Telcom Communications, Inc., Exit Term Loan, 9.000%, 11/01/2015(h)(i)		29,228
	2,676	Sungard Data Systems, Inc., Tranche A, 2.008%, 2/28/2014(h)		2,630
	56,937	SuperMedia, Inc., Exit Term Loan, 11.000%, 12/31/2015(h)		37,617

		Total Bank Loans (Identified Cost $108,416)		69,475


Shares
	Preferred Stocks — 0.3%
	Convertible Preferred Stock — 0.2%
		United States — 0.2%
	820	Lucent Technologies Capital Trust I, 7.750% (Identified Cost $590,508)		803,600

See accompanying notes to financial statements.

31 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


Shares		Description	Value (†)

	Non-Convertible Preferred Stock — 0.1%
		United States — 0.1%
	682	Ally Financial, Inc., Series G, 7.000% 144A (Identified Cost $145,366)	$	634,601

		Total Preferred Stocks (Identified Cost $735,874)		1,438,201


Principal Amount (‡)
	Short-Term Investments — 5.8%
$	26,922,241	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011 at 0.000% to be repurchased at $26,922,241 on 4/01/2011 collateralized by $26,785,000 U.S. Treasury Bill, due 9/22/2011 valued at $26,758,215; $700,000 U.S. Treasury Note, 1.000% due 4/30/12 valued at $707,814 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $26,922,241)		26,922,241


		Total Investments — 99.0% (Identified Cost $387,772,212)(a)		462,641,966
		Other assets less liabilities — 1.0%		4,678,344

		Net Assets — 100.0%	$	467,320,310


	*	Formerly Loomis Sayles Global Markets Fund.
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Security held in units. One unit represents a principal amount of 1,000. Amount shown represents principal amount including inflation adjustments.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.
	(††††)	Amount shown represents units. One unit represents a principal amount of 25.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):
		At March 31, 2011, the net unrealized appreciation on investments based on a cost of $387,911,956 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	$	79,086,346
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(4,356,336	)

		Net unrealized appreciation	$	74,730,010


	(b)	Non-income producing security.
	(c)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
	(d)	All or a portion of this security has been designated to cover the Fund’s obligations under open forward foreign currency contracts.
	(e)	Variable rate security. Rate as of March 31, 2011 is disclosed.

See accompanying notes to financial statements.

| 32

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)


	(f)			Illiquid security. At March 31, 2011, the value of these securities amounted to $462,614 or 0.1% of net assets.
	(g)			Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
	(h)			Variable rate security. Rate shown represents the weighted average rate at March 31, 2011.
	(i)			All or a portion of interest payment is paid-in-kind.

	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 March 31, 2011, the value of Rule 144A holdings amounted to $18,553,513 or 4.0% of net assets.
	ADR/GDR			An American Depositary Receipt or Global 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 and GDRs 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
	CHF			Swiss Franc
	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
	PEN			Peruvian Nuevo Sol
	PHP			Philippine Peso
	SEK			Swedish Krona
	SGD			Singapore Dollar
	TRY			Turkish Lira
	UYU			Uruguayan Peso

See accompanying notes to financial statements.

33 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)

At March 31, 2011, the Fund had the following open forward foreign currency contracts:


Contract to Buy/Sell	Delivery Date		Currency	Units		Notional Value		Unrealized Appreciation (Depreciation)
Sell¹		06/15/2011	Australian Dollar		500,000	$	512,586	$	(11,686)
Buy²		08/23/2011	Chinese Renminbi		11,630,000		1,788,699		26,331
Buy³		06/20/2011	Malaysian Ringgit		1,250,000		410,550		3,330
Buy²		06/02/2011	Polish Zloty		1,200,000		420,494		8,548
Sell²		06/02/2011	Polish Zloty		1,200,000		420,494		(8,017)
Buy¹		06/13/2011	South Korean Won		870,000,000		789,625		12,978
Buy⁴		06/13/2011	South Korean Won		780,000,000		707,939		12,132

Total								$	43,616

¹ Counterparty is Credit Suisse.

² Counterparty is Morgan Stanley.

³ Counterparty is JPMorgan Chase.

⁴ Counterparty is Barclays.

Industry Summary at March 31, 2011 (Unaudited)


Machinery	8.0	%
Energy Equipment & Services	6.0
Treasuries	5.7
Internet Software & Services	5.1
Computers & Peripherals	4.1
Software	3.7
Pharmaceuticals	3.6
Textiles, Apparel & Luxury Goods	3.5
Personal Products	3.2
Commercial Banks	3.0
Internet & Catalog Retail	2.9
Semiconductors & Semiconductor Equipment	2.7
Automobiles	2.5
Communications Equipment	2.5
Industrial Conglomerates	2.4
Aerospace & Defense	2.3
Other Investments, less than 2% each	32.0
Short-Term Investments	5.8

Total Investments	99.0
Other assets less liabilities (including open forward foreign currency contracts)	1.0

Net Assets	100.0	%

See accompanying notes to financial statements.

| 34

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Global Equity and Income Fund* – (continued)

Currency Exposure at March 31, 2011 (Unaudited)


United States Dollar	61.1	%
Euro	8.6
British Pound	7.3
Japanese Yen	3.7
Brazilian Real	3.2
South Korean Won	2.8
Danish Krone	2.6
Hong Kong Dollar	2.0
Other, less than 2% each	7.7

Total Investments	99.0
Other assets less liabilities (including open forward foreign currency contracts)	1.0

Net Assets	100.0	%

See accompanying notes to financial statements.

35 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Growth Fund


Shares		Description	Value (†)

	Common Stocks — 98.8% of Net Assets
		Air Freight & Logistics — 7.7%
	83,027	Expeditors International of Washington, Inc.	$	4,162,974
	68,026	United Parcel Service, Inc., Class B		5,055,692

				9,218,666

		Beverages — 4.0%
	45,889	Coca-Cola Co. (The)		3,044,735
	22,532	Diageo PLC, Sponsored ADR		1,717,389

				4,762,124

		Biotechnology — 6.5%
	84,942	Amgen, Inc.(b)		4,540,150
	44,659	Biogen Idec, Inc.(b)		3,277,524

				7,817,674

		Capital Markets — 8.3%
	16,428	Franklin Resources, Inc.		2,054,815
	80,480	Legg Mason, Inc.		2,904,523
	207,849	SEI Investments Co.		4,963,434

				9,922,772

		Communications Equipment — 9.4%
	313,336	Cisco Systems, Inc.		5,373,713
	107,292	QUALCOMM, Inc.		5,882,820

				11,256,533

		Consumer Finance — 4.0%
	106,425	American Express Co.		4,810,410

		Energy Equipment & Services — 3.4%
	43,908	Schlumberger Ltd.		4,094,860

		Food Products — 2.0%
	180,619	Danone SA, Sponsored ADR		2,371,527

		Health Care Equipment & Supplies — 4.7%
	48,914	Medtronic, Inc.		1,924,766
	61,551	Zimmer Holdings, Inc.(b)		3,725,682

				5,650,448

		Household Products — 4.2%
	26,768	Clorox Co. (The)		1,875,634
	51,204	Procter & Gamble Co. (The)		3,154,166

				5,029,800

		Internet & Catalog Retail — 7.4%
	37,721	Amazon.com, Inc.(b)		6,794,683
	37,520	Blue Nile, Inc.(b)		2,025,705

				8,820,388

		Internet Software & Services — 6.1%
	12,434	Google, Inc., Class A(b)		7,288,935

See accompanying notes to financial statements.

| 36

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Growth Fund – (continued)


Shares		Description	Value (†)

		IT Services — 6.8%
	36,427	Automatic Data Processing, Inc.	$	1,869,069
	85,530	Visa, Inc., Class A		6,296,719

				8,165,788

		Media — 2.5%
	60,953	Omnicom Group, Inc.		2,990,354

		Multiline Retail — 0.3%
	6,883	Target Corp.		344,219

		Pharmaceuticals — 5.2%
	70,048	Merck & Co., Inc.		2,312,285
	70,487	Novartis AG, ADR		3,830,968

				6,143,253

		Semiconductors & Semiconductor Equipment — 3.1%
	52,336	Altera Corp.		2,303,831
	33,779	Analog Devices, Inc.		1,330,217

				3,634,048

		Software — 11.0%
	43,301	FactSet Research Systems, Inc.		4,534,914
	89,672	Microsoft Corp.		2,274,082
	190,838	Oracle Corp.		6,368,264

				13,177,260

		Specialty Retail — 2.2%
	48,320	Home Depot, Inc. (The)		1,790,739
	33,027	Lowe’s Cos., Inc.		872,904

				2,663,643

		Total Common Stocks (Identified Cost $99,756,842)		118,162,702


Principal Amount
	Short-Term Investments — 7.3%
$	8,715,666	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011 at 0.000% to be repurchased at $8,715,666 on 4/01/2011 collateralized by $8,970,000 Federal Home Loan Mortgage Corp., 2.950% due 12/08/2017 valued at $8,891,513 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $8,715,666)		8,715,666


		Total Investments — 106.1% (Identified Cost $108,472,508)(a)		126,878,368
		Other assets less liabilities — (6.1)%		(7,258,840	)

		Net Assets — 100.0%	$	119,619,528

See accompanying notes to financial statements.

37 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Growth Fund – (continued)


(†)	See Note 2 of Notes to Financial Statements.
(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
	At March 31, 2011, the net unrealized appreciation on investments based on a cost of $108,472,508 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	$	19,992,141
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(1,586,281	)

	Net unrealized appreciation	$	18,405,860


(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 March 31, 2011 (Unaudited)


Software	11.0	%
Communications Equipment	9.4
Capital Markets	8.3
Air Freight & Logistics	7.7
Internet & Catalog Retail	7.4
IT Services	6.8
Biotechnology	6.5
Internet Software & Services	6.1
Pharmaceuticals	5.2
Health Care Equipment & Supplies	4.7
Household Products	4.2
Consumer Finance	4.0
Beverages	4.0
Energy Equipment & Services	3.4
Semiconductors & Semiconductor Equipment	3.1
Media	2.5
Specialty Retail	2.2
Food Products	2.0
Multiline Retail	0.3
Short-Term Investments	7.3

Total Investments	106.1
Other assets less liabilities	(6.1	)

Net Assets	100.0	%

See accompanying notes to financial statements.

| 38

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Mid Cap Growth Fund


Shares			Description	Value (†)

	Common Stocks — 97.2% of Net Assets
			Auto Components — 1.7%
	30,394		BorgWarner, Inc.(b)	$	2,422,098

			Automobiles — 1.4%
	47,400		Harley-Davidson, Inc.		2,014,026

			Biotechnology — 3.1%
	30,959		Alexion Pharmaceuticals, Inc.(b)		3,055,034
	28,679		Vertex Pharmaceuticals, Inc.(b)		1,374,585

					4,429,619

			Capital Markets — 1.8%
	39,094		T. Rowe Price Group, Inc.		2,596,623

			Chemicals — 1.0%
	23,239		Kronos Worldwide, Inc.		1,358,320

			Commercial Services & Supplies — 1.9%
	30,688		Stericycle, Inc.(b)		2,721,105

			Communications Equipment — 3.8%
	30,931		Acme Packet, Inc.(b)		2,194,864
	95,066		Aruba Networks, Inc.(b)		3,217,033

					5,411,897

			Containers & Packaging — 1.6%
	59,396		Crown Holdings, Inc.(b)		2,291,498

			Diversified Financial Services — 1.3%
	15,604		IntercontinentalExchange, Inc.(b)		1,927,718

			Electrical Equipment — 3.6%
	39,426		Polypore International, Inc.(b)		2,270,149
	29,872		Rockwell Automation, Inc.		2,827,385

					5,097,534

			Energy Equipment & Services — 2.8%
	25,466		Lufkin Industries, Inc.		2,380,307
	38,566		Superior Energy Services, Inc.(b)		1,581,206

					3,961,513

			Food Products — 1.4%
	34,985		Diamond Foods, Inc.		1,952,163

			Health Care Equipment & Supplies — 1.8%
	30,200		Edwards Lifesciences Corp.(b)		2,627,400

		��	Health Care Providers & Services — 1.4%
	25,260		HMS Holdings Corp.(b)		2,067,531

			Health Care Technology — 1.7%
	44,353		SXC Health Solutions Corp.(b)		2,430,544

			Hotels, Restaurants & Leisure — 2.7%
	41,076		Ctrip.com International Ltd., ADR(b)		1,704,243
	16,807		Wynn Resorts Ltd.		2,138,691

					3,842,934

See accompanying notes to financial statements.

39 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Mid Cap Growth Fund – (continued)


Shares		Description	Value (†)

		Household Products — 1.4%
	26,045	Church & Dwight Co., Inc.	$	2,066,410

		Internet & Catalog Retail — 4.3%
	12,101	NetFlix, Inc.(b)		2,871,930
	6,400	Priceline.com, Inc.(b)		3,241,216

				6,113,146

		Internet Software & Services — 9.2%
	28,232	MercadoLibre, Inc.		2,304,578
	30,367	OpenTable, Inc.(b)		3,229,530
	23,024	Qihoo 360 Technology Co. Ltd., ADR(b)		681,280
	56,047	Rackspace Hosting, Inc.(b)		2,401,614
	29,722	SINA Corp.(b)		3,181,443
	29,778	Youku.com, Inc., Sponsored ADR(b)		1,414,753

				13,213,198

		IT Services — 3.8%
	53,820	Gartner, Inc.(b)		2,242,680
	57,433	VeriFone Systems, Inc.(b)		3,155,943

				5,398,623

		Life Sciences Tools & Services — 2.0%
	16,657	Mettler-Toledo International, Inc.(b)		2,865,004

		Machinery — 7.4%
	19,867	Cummins, Inc.		2,177,820
	41,708	Joy Global, Inc.		4,121,167
	21,807	Parker Hannifin Corp.		2,064,687
	36,973	WABCO Holdings, Inc.(b)		2,279,016

				10,642,690

		Metals & Mining — 3.6%
	26,584	Cliffs Natural Resources, Inc.		2,612,675
	19,192	Walter Energy, Inc.		2,599,173

				5,211,848

		Multiline Retail — 1.7%
	43,700	Dollar Tree, Inc.(b)		2,426,224

		Oil, Gas & Consumable Fuels — 6.2%
	62,111	Brigham Exploration Co.(b)		2,309,287
	41,820	Concho Resources, Inc.(b)		4,487,286
	27,605	SM Energy Co.		2,048,015

				8,844,588

		Personal Products — 1.5%
	21,505	Estee Lauder Cos., Inc. (The), Class A		2,072,222

		Pharmaceuticals — 4.1%
	36,044	Perrigo Co.		2,866,219
	59,032	Valeant Pharmaceuticals International, Inc.		2,940,384

				5,806,603

See accompanying notes to financial statements.

| 40

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Mid Cap Growth Fund – (continued)


Shares		Description	Value (†)

		Real Estate Management & Development — 3.3%
	100,797	CB Richard Ellis Group, Inc., Class A(b)	$	2,691,280
	20,486	Jones Lang LaSalle, Inc.		2,043,274

				4,734,554

		Semiconductors & Semiconductor Equipment — 4.3%
	79,655	ARM Holdings PLC, Sponsored ADR		2,243,881
	69,537	NXP Semiconductors NV(b)		2,086,110
	57,762	Skyworks Solutions, Inc.(b)		1,872,644

				6,202,635

		Software — 5.8%
	47,650	Autodesk, Inc.(b)		2,101,841
	31,274	Fortinet, Inc.(b)		1,376,056
	55,385	Informatica Corp.(b)		2,892,759
	14,700	Salesforce.com, Inc.(b)		1,963,626

				8,334,282

		Textiles, Apparel & Luxury Goods — 5.6%
	25,170	Deckers Outdoor Corp.(b)		2,168,396
	37,766	Fossil, Inc.(b)		3,536,786
	26,248	Lululemon Athletica, Inc.(b)		2,337,384

				8,042,566

		Total Common Stocks (Identified Cost $105,494,055)		139,127,116


	Purchased Options — 0.1%
		Options on Securities — 0.1%
	30,100	Edwards Lifesciences Corp., Put expiring April 16, 2011 at 85 (Identified Cost $76,157)		77,508


Principal Amount
	Short-Term Investments — 3.1%
$	4,484,321	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011 at 0.000% to be repurchased at $4,484,321 on 4/01/2011 collateralized by $4,810,000 Federal Home Loan Mortgage Corp., 3.310% due 11/10/2020 valued at $4,575,513, including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $4,484,321)		4,484,321


		Total Investments — 100.4% (Identified Cost $110,054,533)(a)		143,688,945
		Other assets less liabilities — (0.4)%		(610,542	)

		Net Assets — 100.0%	$	143,078,403

See accompanying notes to financial statements.

41 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Mid Cap Growth Fund – (continued)


(†)	See Note 2 of Notes to Financial Statements.
(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
	At March 31, 2011, the net unrealized appreciation on investments based on a cost of $110,054,533 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	$	33,942,593
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(308,181	)

	Net unrealized appreciation	$	33,634,412


(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 March 31, 2011 (Unaudited)


Internet Software & Services	9.2	%
Machinery	7.4
Oil, Gas & Consumable Fuels	6.2
Software	5.8
Textiles, Apparel & Luxury Goods	5.6
Semiconductors & Semiconductor Equipment	4.3
Internet & Catalog Retail	4.3
Pharmaceuticals	4.1
Communications Equipment	3.8
IT Services	3.8
Metals & Mining	3.6
Electrical Equipment	3.6
Real Estate Management & Development	3.3
Biotechnology	3.1
Energy Equipment & Services	2.8
Hotels, Restaurants & Leisure	2.7
Life Sciences Tools & Services	2.0
Other Investments, less than 2% each	21.7
Short-Term Investments	3.1

Total Investments	100.4
Other assets less liabilities	(0.4	)

Net Assets	100.0	%

See accompanying notes to financial statements.

| 42

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Value Fund


Shares		Description	Value (†)

	Common Stocks — 97.7% of Net Assets
		Aerospace & Defense — 3.0%
	303,229	Honeywell International, Inc.	$	18,105,804
	51,957	Huntington Ingalls Industries, Inc.(b)		2,156,215
	311,747	Northrop Grumman Corp.		19,549,654

				39,811,673

		Auto Components — 1.6%
	567,735	Goodyear Tire & Rubber Co. (The)(b)		8,504,670
	315,588	Johnson Controls, Inc.		13,118,993

				21,623,663

		Automobiles — 0.8%
	336,870	General Motors Co.(b)		10,453,076

		Beverages — 2.9%
	639,290	Coca-Cola Enterprises, Inc.		17,452,617
	323,349	PepsiCo, Inc.		20,826,909

				38,279,526

		Biotechnology — 0.9%
	220,296	Amgen, Inc.(b)		11,774,821

		Capital Markets — 5.3%
	314,173	Ameriprise Financial, Inc.		19,189,687
	486,044	Bank of New York Mellon Corp.		14,518,134
	485,380	Legg Mason, Inc.		17,517,364
	428,811	State Street Corp.		19,270,767

				70,495,952

		Chemicals — 1.2%
	169,243	Air Products & Chemicals, Inc.		15,262,334

		Commercial Banks — 5.8%
	1,167,696	Fifth Third Bancorp		16,207,620
	337,418	PNC Financial Services Group, Inc.		21,253,960
	552,459	U.S. Bancorp		14,601,491
	787,945	Wells Fargo & Co.		24,977,857

				77,040,928

		Communications Equipment — 1.0%
	771,803	Cisco Systems, Inc.		13,236,421

		Computers & Peripherals — 0.7%
	209,237	Hewlett-Packard Co.		8,572,440

		Construction & Engineering — 0.9%
	316,323	Foster Wheeler AG(b)		11,900,071

		Construction Materials — 0.9%
	271,696	Vulcan Materials Co.		12,389,338

		Consumer Finance — 1.5%
	840,702	Discover Financial Services		20,277,732

		Diversified Financial Services — 5.8%
	1,492,813	Bank of America Corp.		19,899,198

See accompanying notes to financial statements.

43 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Value Fund – (continued)


Shares		Description	Value (†)

		Diversified Financial Services — continued
	4,672,779	Citigroup, Inc.(b)	$	20,653,683
	771,081	JPMorgan Chase & Co.		35,546,834

				76,099,715

		Diversified Telecommunication Services — 2.9%
	711,509	AT&T, Inc.		21,772,176
	392,893	CenturyLink, Inc.		16,324,704

				38,096,880

		Electric Utilities — 1.2%
	623,008	PPL Corp.		15,762,102

		Electrical Equipment — 1.0%
	554,712	ABB Ltd., Sponsored ADR(b)		13,418,483

		Energy Equipment & Services — 2.3%
	323,644	Schlumberger Ltd.		30,183,039

		Food & Staples Retailing — 1.3%
	492,989	CVS Caremark Corp.		16,919,382

		Food Products — 1.7%
	280,879	ConAgra Foods, Inc.		6,670,876
	302,134	Kellogg Co.		16,309,194

				22,980,070

		Health Care Equipment & Supplies — 3.7%
	262,253	Alere, Inc.(b)		10,264,582
	375,159	Covidien PLC		19,485,759
	467,621	Medtronic, Inc.		18,400,886

				48,151,227

		Health Care Providers & Services — 2.4%
	299,252	HCA Holdings, Inc.(b)		10,135,665
	487,141	UnitedHealth Group, Inc.		22,018,773

				32,154,438

		Household Durables — 2.0%
	679,862	Newell Rubbermaid, Inc.		13,005,760
	178,454	Stanley Black & Decker, Inc.		13,669,576

				26,675,336

		Household Products — 1.3%
	271,379	Procter & Gamble Co. (The)		16,716,946

		Independent Power Producers & Energy Traders — 1.2%
	1,014,565	Calpine Corp.(b)		16,101,147

		Industrial Conglomerates — 3.9%
	1,801,818	General Electric Co.		36,126,451
	110,982	Siemens AG, Sponsored ADR		15,242,268

				51,368,719

		Insurance — 3.8%
	444,487	MetLife, Inc.		19,881,904

See accompanying notes to financial statements.

| 44

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Value Fund – (continued)


Shares		Description	Value (†)

		Insurance — continued
	269,357	Travelers Cos., Inc. (The)	$	16,021,354
	556,704	Unum Group		14,613,480

				50,516,738

		Internet Software & Services — 1.8%
	405,653	AOL, Inc.(b)		7,922,403
	527,886	eBay, Inc.(b)		16,385,582

				24,307,985

		Machinery — 0.8%
	284,834	Harsco Corp.		10,051,792

		Media — 6.3%
	657,685	CBS Corp., Class B		16,468,433
	1,088,460	Comcast Corp., Class A		26,906,731
	238,863	DIRECTV, Class A(b)		11,178,788
	300,341	Omnicom Group, Inc.		14,734,730
	302,160	Viacom, Inc., Class B		14,056,483

				83,345,165

		Multi Utilities — 1.0%
	416,770	Public Service Enterprise Group, Inc.		13,132,423

		Oil, Gas & Consumable Fuels — 11.1%
	202,826	Chevron Corp.		21,789,597
	190,641	CONSOL Energy, Inc.		10,224,077
	1,538,756	El Paso Corp.		27,697,608
	419,889	ExxonMobil Corp.		35,325,261
	294,075	Hess Corp.		25,058,131
	425,664	Total SA, Sponsored ADR		25,952,734

				146,047,408

		Paper & Forest Products — 0.6%
	274,699	AbitibiBowater, Inc.(b)		7,381,162

		Pharmaceuticals — 5.6%
	553,181	Bristol-Myers Squibb Co.		14,620,574
	594,445	Merck & Co., Inc.		19,622,629
	1,059,209	Pfizer, Inc.		21,512,535
	532,563	Sanofi-Aventis SA, Sponsored ADR		18,756,869

				74,512,607

		REITs - Diversified — 1.3%
	684,164	Weyerhaeuser Co.		16,830,434

		Road & Rail — 1.2%
	220,065	Norfolk Southern Corp.		15,243,903

		Semiconductors & Semiconductor Equipment — 1.3%
	1,135,095	Applied Materials, Inc.		17,730,184

		Software — 2.1%
	818,669	Oracle Corp.		27,318,985

		Specialty Retail — 2.0%
	531,120	Gap, Inc. (The)		12,035,179

See accompanying notes to financial statements.

45 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Value Fund – (continued)


Shares		Description	Value (†)

		Specialty Retail — continued
	539,638	Lowe’s Cos., Inc.	$	14,262,633

				26,297,812

		Wireless Telecommunication Services — 1.6%
	721,386	Vodafone Group PLC, Sponsored ADR		20,739,848

		Total Common Stocks (Identified Cost $1,069,874,649)		1,289,201,905


Principal Amount
	Short-Term Investments — 2.5%
$	33,202,923	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011 at 0.000% to be repurchased at $33,202,923 on 4/01/2011 collateralized by $35,605,000 Federal Home Loan Mortgage Corp., 3.310% due 11/10/2020 valued at $33,869,256 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $33,202,923)		33,202,923


		Total Investments — 100.2% (Identified Cost $1,103,077,572)(a)		1,322,404,828
		Other assets less liabilities — (0.2)%		(2,070,629	)

		Net Assets — 100.0%	$	1,320,334,199


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
		At March 31, 2011, the net unrealized appreciation on investments based on a cost of $1,103,077,572 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	$	228,695,005
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(9,367,749	)

		Net unrealized appreciation	$	219,327,256


	(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.
	REITs	Real Estate Investment Trusts

See accompanying notes to financial statements.

| 46

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Value Fund – (continued)

Industry Summary at March 31, 2011 (Unaudited)


Oil, Gas & Consumable Fuels	11.1	%
Media	6.3
Commercial Banks	5.8
Diversified Financial Services	5.8
Pharmaceuticals	5.6
Capital Markets	5.3
Industrial Conglomerates	3.9
Insurance	3.8
Health Care Equipment & Supplies	3.7
Aerospace & Defense	3.0
Beverages	2.9
Diversified Telecommunication Services	2.9
Health Care Providers & Services	2.4
Energy Equipment & Services	2.3
Software	2.1
Household Durables	2.0
Specialty Retail	2.0
Other Investments, less than 2% each	26.8
Short-Term Investments	2.5

Total Investments	100.2
Other assets less liabilities	(0.2	)

Net Assets	100.0	%

See accompanying notes to financial statements.

47 |

Statements of Assets and Liabilities

March 31, 2011 (Unaudited)


	Global Equity and Income Fund*			Growth Fund			Mid Cap Growth Fund			Value Fund
ASSETS
Investments at cost	$	387,772,212		$	108,472,508		$	110,054,533		$	1,103,077,572
Net unrealized appreciation		74,869,754			18,405,860			33,634,412			219,327,256

Investments at value		462,641,966			126,878,368			143,688,945			1,322,404,828
Cash		14,187			—			—			—
Foreign currency at value (identified cost $4,350,506, $0, $0 and $0)		4,334,115			—			—			—
Receivable for Fund shares sold		3,017,286			43,383			434,236			1,900,021
Receivable for securities sold		341,351			—			—			—
Dividends and interest receivable		2,496,765			227,856			15,286			1,559,709
Unrealized appreciation on forward foreign currency contracts (Note 2)		63,319			—			—			—
Tax reclaims receivable		63,092			30,942			—			139,637

TOTAL ASSETS		472,972,081			127,180,549			144,138,467			1,326,004,195

LIABILITIES
Payable for securities purchased		4,742,020			7,060,250			679,549			—
Payable for Fund shares redeemed		399,059			267,827			186,876			4,756,980
Unrealized depreciation on forward foreign currency contracts (Note 2)		19,703			—			—			—
Management fees payable (Note 6)		356,024			47,009			74,329			550,333
Deferred Trustees’ fees (Note 6)		67,273			98,386			70,305			251,059
Administrative fees payable (Note 6)		17,518			4,429			5,424			51,772
Other accounts payable and accrued expenses		50,174			83,120			43,581			59,852

TOTAL LIABILITIES		5,651,771			7,561,021			1,060,064			5,669,996

NET ASSETS	$	467,320,310		$	119,619,528		$	143,078,403		$	1,320,334,199

NET ASSETS CONSIST OF:
Paid-in capital	$	465,424,123		$	197,603,129		$	164,588,863		$	1,163,398,067
Accumulated net investment (loss)/Undistributed net investment income		113,569			23,583			(432,727	)		3,095,919
Accumulated net realized loss on investments, options written and foreign currency transactions		(73,138,189	)		(96,413,044	)		(54,712,145	)		(65,487,043	)
Net unrealized appreciation on investments and foreign currency translations		74,920,807			18,405,860			33,634,412			219,327,256

NET ASSETS	$	467,320,310		$	119,619,528		$	143,078,403		$	1,320,334,199

*	Formerly Global Markets Fund.

See accompanying notes to financial statements.

| 48

Statements of Assets and Liabilities (continued)

March 31, 2011 (Unaudited)


	Global Equity and Income Fund*		Growth Fund		Mid Cap Growth Fund		Value Fund
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	98,952,101	$	30,943,191	$	91,950,427	$	158,436,984

Shares of beneficial interest		6,093,684		5,379,127		3,022,873		7,970,470

Net asset value and redemption price per share	$	16.24	$	5.75	$	30.42	$	19.88

Offering price per share (100/94.25 of net asset value) (Note 1)	$	17.23	$	6.10	$	32.28	$	21.09

Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	—	$	3,506,389	$	—	$	3,242,658

Shares of beneficial interest		—		644,941		—		162,369

Net asset value and offering price per share	$	—	$	5.44	$	—	$	19.97

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	145,799,605	$	12,837,667	$	1,084,927	$	12,711,878

Shares of beneficial interest		9,034,811		2,360,194		36,231		644,568

Net asset value and offering price per share	$	16.14	$	5.44	$	29.94	$	19.72

Class Y shares:
Net assets	$	222,568,604	$	72,332,281	$	50,043,049	$	1,145,941,478

Shares of beneficial interest		13,661,419		11,868,122		1,590,994		57,571,114

Net asset value, offering and redemption price per share	$	16.29	$	6.09	$	31.45	$	19.90

Admin Class shares:
Net assets	$	—	$	—	$	—	$	1,201

Shares of beneficial interest		—		—		—		61

Net asset value, offering and redemption price per share	$	—	$	—	$	—	$	19.85

*	Formerly Global Markets Fund.

See accompanying notes to financial statements.

49 |

Statements of Operations

For the Six Months Ended March 31, 2011 (Unaudited)


	Global Equity and Income Fund*			Growth Fund			Mid Cap Growth Fund			Value Fund
INVESTMENT INCOME
Dividends	$	1,277,329		$	760,070		$	342,629	(a)	$	11,268,873
Interest		3,419,706			—			—			—
Less net foreign taxes withheld		(108,153	)		(23,206	)		(1,674	)		(177,336	)

		4,588,882			736,864			340,955			11,091,537

Expenses
Management fees (Note 6)		1,434,635			270,136			460,970			2,961,907
Service and distribution fees (Note 6)		733,021			123,582			103,632			255,265
Administrative fees (Note 6)		89,357			25,242			28,713			276,739
Trustees’ fees and expenses (Note 6)		15,689			15,823			20,598			32,857
Transfer agent fees and expenses (Note 6)		109,589			96,475			66,323			718,131
Audit and tax services fees		26,215			20,939			26,207			17,416
Custodian fees and expenses		95,799			8,961			12,590			18,373
Legal fees		3,957			1,209			1,229			12,597
Registration fees		30,504			41,651			32,107			58,194
Shareholder reporting expenses		14,819			14,999			6,894			50,142
Miscellaneous expenses		15,733			5,390			7,173			17,878

Total expenses		2,569,318			624,407			766,436			4,419,499

Fee/expense recovery (Note 6)		76,550			—			—			—
Less waiver and/or expense reimbursement (Note 6)		—			—			(47,918	)		—

Net expenses		2,645,868			624,407			718,518			4,419,499

Net investment income (loss)		1,943,014			112,457			(377,563	)		6,672,038

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on:
Investments		21,514,113			2,752,664			19,146,488			22,473,214
Options written		—			—			333,238			—
Foreign currency transactions		35,269			—			6,858			—
Net change in unrealized appreciation (depreciation) on:
Investments		19,438,710			9,130,714			11,184,515			181,564,517
Options written		—			—			(111,228	)		—
Foreign currency translations		(76,605	)		—			—			—

Net realized and unrealized gain on investments, options written and foreign currency transactions		40,911,487			11,883,378			30,559,871			204,037,731

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	42,854,501		$	11,995,835		$	30,182,308		$	210,709,769

*	Formerly Global Markets Fund.

(a)	Includes a non-recurring dividend of $165,704.

See accompanying notes to financial statements.

| 50

Statements of Changes in Net Assets


	Global Equity and Income Fund*						Growth Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)		Year Ended September 30, 2010
FROM OPERATIONS:
Net investment income (loss)	$	1,943,014		$	4,895,993		$	112,457	$	(323,963	)
Net realized gain on investments and foreign currency transactions		21,549,382			18,063,372			2,752,664		24,201,174
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		19,362,105			28,908,742			9,130,714		(9,534,757	)

Net increase in net assets resulting from operations		42,854,501			51,868,107			11,995,835		14,342,454

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(1,363,693	)		(1,152,275	)		—		—
Class B		—			—			—		—
Class C		(1,202,095	)		(1,701,697	)		—		—
Class Y		(3,043,709	)		(2,794,707	)		—		—

Total distributions		(5,609,497	)		(5,648,679	)		—		—

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 11)		111,472,251			22,778,290			7,845,465		(26,537,256	)

Net increase (decrease) in net assets		148,717,255			68,997,718			19,841,300		(12,194,802	)
NET ASSETS
Beginning of the period		318,603,055			249,605,337			99,778,228		111,973,030

End of the period	$	467,320,310		$	318,603,055		$	119,619,528	$	99,778,228

ACCUMULATED NET INVESTMENT (LOSS)/UNDISTRIBUTED NET INVESTMENT INCOME	$	113,569		$	3,780,052		$	23,583	$	(88,874	)

*	Formerly Global Markets Fund.

See accompanying notes to financial statements.

51 |

Statements of Changes in Net Assets (continued)


	Mid Cap Growth Fund						Value Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
FROM OPERATIONS:
Net investment income (loss)	$	(377,563	)	$	(328,650	)	$	6,672,038		$	15,587,073
Net realized gain on investments, options written and foreign currency transactions		19,486,584			14,593,740			22,473,214			10,776,100
Net change in unrealized appreciation (depreciation) on investments, options written and foreign currency translations		11,073,287			7,166,808			181,564,517			(6,736,757	)

Net increase in net assets resulting from operations		30,182,308			21,431,898			210,709,769			19,626,416

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		—			—			(1,714,074	)		(1,044,591	)
Class B		—			—			(8,769	)		—
Class C		—			—			(44,845	)		(22,715	)
Class Y		—			—			(14,549,558	)		(6,810,651	)
Admin Class		—			—			(11	)		—

Total distributions		—			—			(16,317,257	)		(7,877,957	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 11)		11,466,671			(2,011,419	)		192,556,271			211,104,442

Net increase in net assets		41,648,979			19,420,479			386,948,783			222,852,901
NET ASSETS
Beginning of the period		101,429,424			82,008,945			933,385,416			710,532,515

End of the period	$	143,078,403		$	101,429,424		$	1,320,334,199		$	933,385,416

ACCUMULATED NET INVESTMENT (LOSS)/UNDISTRIBUTED NET INVESTMENT INCOME	$	(432,727	)	$	(55,164	)	$	3,095,919		$	12,741,138

See accompanying notes to financial statements.

| 52

Financial Highlights

For a share outstanding throughout each period.


			Income (Loss) From Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains (b)			Total distributions
GLOBAL EQUITYAND INCOME FUND*
Class A
3/31/2011(h)	$	14.72	$	0.09	$	1.68		$	1.77		$	(0.25	)	$	—		$	(0.25	)
9/30/2010		12.50		0.26		2.26			2.52			(0.30	)		—			(0.30	)
9/30/2009		11.65		0.36		0.74	(j)		1.10			(0.25	)		(0.00	)		(0.25	)
9/30/2008		15.83		0.25		(3.46	)		(3.21	)		(0.53	)		(0.44	)		(0.97	)
9/30/2007		12.49		0.20		3.39			3.59			(0.25	)		—			(0.25	)
9/30/2006**		12.71		0.12		(0.34	)		(0.22	)		—			—			—
Class C
3/31/2011(h)		14.59		0.03		1.67			1.70			(0.15	)		—			(0.15	)
9/30/2010		12.39		0.16		2.26			2.42			(0.22	)		—			(0.22	)
9/30/2009		11.51		0.28		0.75	(j)		1.03			(0.15	)		(0.00	)		(0.15	)
9/30/2008		15.70		0.15		(3.43	)		(3.28	)		(0.47	)		(0.44	)		(0.91	)
9/30/2007		12.43		0.10		3.36			3.46			(0.19	)		—			(0.19	)
9/30/2006**		12.71		0.06		(0.34	)		(0.28	)		—			—			—
Class Y***
3/31/2011(h)		14.78		0.11		1.68			1.79			(0.28	)		—			(0.28	)
9/30/2010		12.54		0.29		2.28			2.57			(0.33	)		—			(0.33	)
9/30/2009		11.70		0.38		0.75	(j)		1.13			(0.29	)		(0.00	)		(0.29	)
9/30/2008		15.87		0.30		(3.48	)		(3.18	)		(0.55	)		(0.44	)		(0.99	)
9/30/2007		12.51		0.24		3.39			3.63			(0.27	)		—			(0.27	)
9/30/2006		11.84		0.19		0.64			0.83			(0.16	)		—			(0.16	)

*	Formerly Global Markets Fund.

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

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

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

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

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

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

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

See accompanying notes to financial statements.

53 |


									Ratios to Average Net Assets:
Redemption fees (b)(c)		Net asset value, end of the period		Total return (%) (d)(e)			Net assets, end of the period (000’s)		Net expenses (%) (f)(g)			Gross expenses (%) (g)			Net investment income (%) (g)		Portfolio turnover rate (%)


$	—	$	16.24		12.14		$	98,952		1.25	(i)		1.25	(i)		1.15		39
	—		14.72		20.61			64,367		1.25			1.29			1.96		99
	—		12.50		10.27			44,669		1.25			1.34			3.56		114
	0.00		11.65		(21.87	)		67,647		1.25			1.27			1.74		133
	0.00		15.83		29.05			28,927		1.25			1.37			1.44		78
	—		12.49		(1.73	)		10,438		1.25			1.56			1.52		103

	—		16.14		11.70			145,800		2.00	(i)		2.00	(i)		0.39		39
	—		14.59		19.79			109,455		2.00			2.04			1.21		99
	—		12.39		9.40			96,208		2.00			2.09			2.82		114
	0.00		11.51		(22.42	)		124,178		2.00			2.02			1.04		133
	0.00		15.70		27.99			60,179		2.00			2.11			0.69		78
	—		12.43		(2.12	)		20,228		2.00			2.32			0.78		103

	—		16.29		12.22			222,569		1.00	(i)		1.00	(i)		1.40		39
	—		14.78		21.02			144,780		1.00			1.04			2.20		99
	—		12.54		10.49			108,728		1.00			1.01			3.79		114
	0.00		11.70		(21.66	)		120,322		0.99	(k)		0.99	(k)		2.06		133
	0.00		15.87		29.36			80,824		1.00			1.02			1.70		78
	0.00		12.51		7.07			58,650		1.00			1.19			1.58		103

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

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

(h)	For the six months ended March 31, 2011 (Unaudited).

(i)	Includes fee/expense recovery of 0.04%.

(j)	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.

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

See accompanying notes to financial statements.

| 54

Financial Highlights (continued)

For a share outstanding throughout each period.


			Income (Loss) From Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment income (loss) (a)(b)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income		Distributions from net realized capital gains		Total distributions
GROWTH FUND
Class A
3/31/2011(g)	$	5.14	$	0.00		$	0.61		$	0.61		$	—	$	—	$	—
9/30/2010		4.48		(0.01	)		0.67			0.66			—		—		—
9/30/2009		4.99		(0.01	)		(0.50	)		(0.51	)		—		—		—
9/30/2008		7.01		(0.02	)		(2.00	)		(2.02	)		—		—		—
9/30/2007		5.84		(0.03	)		1.20			1.17			—		—		—
9/30/2006		6.03		(0.00	)		(0.19	)		(0.19	)		—		—		—
Class B
3/31/2011(g)		4.87		(0.02	)		0.59			0.57			—		—		—
9/30/2010		4.28		(0.05	)		0.64			0.59			—		—		—
9/30/2009		4.81		(0.04	)		(0.49	)		(0.53	)		—		—		—
9/30/2008		6.79		(0.07	)		(1.91	)		(1.98	)		—		—		—
9/30/2007		5.70		(0.07	)		1.16			1.09			—		—		—
9/30/2006		5.94		(0.05	)		(0.19	)		(0.24	)		—		—		—
Class C
3/31/2011(g)		4.87		(0.02	)		0.59			0.57			—		—		—
9/30/2010		4.28		(0.05	)		0.64			0.59			—		—		—
9/30/2009		4.81		(0.04	)		(0.49	)		(0.53	)		—		—		—
9/30/2008		6.80		(0.07	)		(1.92	)		(1.99	)		—		—		—
9/30/2007		5.71		(0.08	)		1.17			1.09			—		—		—
9/30/2006		5.94		(0.04	)		(0.19	)		(0.23	)		—		—		—
Class Y
3/31/2011(g)		5.43		0.01			0.65			0.66			—		—		—
9/30/2010		4.73		(0.00	)		0.70			0.70			—		—		—
9/30/2009		5.24		0.01			(0.52	)		(0.51	)		—		—		—
9/30/2008		7.32		0.01			(2.09	)		(2.08	)		—		—		—
9/30/2007		6.08		(0.00	)		1.24			1.24			—		—		—
9/30/2006		6.26		0.02			(0.20	)		(0.18	)		—		—		—

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

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

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

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

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

See accompanying notes to financial statements.

55 |


							Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (c)(d)			Net assets, end of the period (000’s)		Net expenses (%) (e)(f)			Gross expenses (%) (f)			Net investment income (loss) (%) (f)			Portfolio turnover rate (%)


$	5.75		11.87		$	30,943		1.18			1.18			0.18			8
	5.14		14.73			29,901		1.19			1.20			(0.30	)		163
	4.48		(10.40	)		33,207		1.25			1.31			(0.25	)		191
	4.99		(28.67	)		156,841		1.10			1.10			(0.33	)		179
	7.01		20.03			228,629		1.14	(h)		1.14	(h)		(0.49	)		134
	5.84		(3.15	)		225,729		1.10			1.17			(0.03	)		174

	5.44		11.70			3,506		1.93			1.93			(0.59	)		8
	4.87		13.79			4,086		1.93			1.95			(1.06	)		163
	4.28		(11.02	)		5,397		2.00			2.12			(1.06	)		191
	4.81		(29.16	)		9,553		1.85			1.85			(1.05	)		179
	6.79		19.12			28,258		1.85	(h)		1.85	(h)		(1.20	)		134
	5.70		(4.04	)		32,160		1.95			2.11			(0.85	)		174

	5.44		11.70			12,838		1.93			1.93			(0.58	)		8
	4.87		13.79			12,493		1.93			1.95			(1.06	)		163
	4.28		(11.02	)		16,336		2.00			2.12			(1.06	)		191
	4.81		(29.26	)		27,743		1.85			1.85			(1.08	)		179
	6.80		19.09			39,157		1.88			1.88			(1.23	)		134
	5.71		(3.87	)		43,415		1.85			1.95			(0.76	)		174

	6.09		11.95			72,332		0.93			0.93			0.45			8
	5.43		15.01			53,299		0.93	(i)		0.95			(0.05	)		163
	4.73		(9.73	)		57,033		0.75			0.75			0.18			191
	5.24		(28.42	)		75,389		0.66			0.66			0.11			179
	7.32		20.39			124,663		0.67			0.67			(0.02	)		134
	6.08		(2.88	)		121,478		0.80	(j)		0.80	(j)		0.31			174

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

(g)	For the six months ended March 31, 2011 (Unaudited).

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

(i)	Effective February 1, 2010, the expense limit increased to 1.00% for Class Y shares.

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

See accompanying notes to financial statements.

| 56

Financial Highlights (continued)

For a share outstanding throughout each period.


			Income (Loss) From Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment loss(a)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income		Distributions from net realized capital gains		Total distributions
MID CAP GROWTH FUND
Class A*
3/31/2011(f)	$	23.76	$	(0.09	)(g)	$	6.75		$	6.66		$	—	$	—	$	—
9/30/2010		18.29		(0.09	)(h)		5.56			5.47			—		—		—
9/30/2009		21.12		(0.07	)(i)		(2.76	)		(2.83	)		—		—		—
9/30/2008		26.84		(0.15	)		(5.57	)		(5.72	)		—		—		—
9/30/2007		19.69		(0.16	)(j)		7.31			7.15			—		—		—
9/30/2006		18.63		(0.15	)		1.21			1.06			—		—		—
Class C
3/31/2011(f)		23.47		(0.20	)(g)		6.67			6.47			—		—		—
9/30/2010		18.20		(0.18	)(h)		5.45			5.27			—		—		—
9/30/2009**		15.13		(0.16	)		3.23			3.07			—		—		—
Class Y*
3/31/2011(f)		24.53		(0.06	)(g)		6.98			6.92			—		—		—
9/30/2010		18.84		(0.07	)(h)		5.76			5.69			—		—		—
9/30/2009		21.70		(0.05	)(i)		(2.81	)		(2.86	)		—		—		—
9/30/2008		27.51		(0.10	)		(5.71	)		(5.81	)		—		—		—
9/30/2007		20.13		(0.11	)(j)		7.49			7.38			—		—		—
9/30/2006		19.00		(0.10	)		1.23			1.13			—		—		—

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

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

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

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

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

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

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

See accompanying notes to financial statements.

57 |


							Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (b)(c)			Net assets, end of the period (000’s)		Net expenses (%) (d)(e)			Gross expenses (%) (e)			Net investment loss (%) (e)			Portfolio turnover rate (%)


$	30.42		28.03		$	91,950		1.25			1.33			(0.69	)(g)		91
	23.76		29.91			67,639		1.25			1.46			(0.45	)(h)		191
	18.29		(13.44	)		54,951		1.25			1.52			(0.45	)(i)		292
	21.12		(21.27	)		120,524		1.25			1.32			(0.58	)		299
	26.84		36.31			30,654		1.25			1.43			(0.71	)		194
	19.69		5.69			26,668		1.25			1.52			(0.72	)		211

	29.94		27.57			1,085		2.00			2.09			(1.51	)(g)		91
	23.47		28.96			34		2.00			2.24			(0.89	)(h)		191
	18.20		20.29			1		2.00			2.24			(1.54	)		292

	31.45		28.21			50,043		1.00			1.08			(0.45	)(g)		91
	24.53		30.20			33,757		1.00			1.22			(0.34	)(h)		191
	18.84		(13.18	)		27,057		1.00			1.12			(0.27	)(i)		292
	21.70		(21.12	)		25,779		1.00	(k)		1.00	(k)		(0.36	)		299
	27.51		36.66			24,143		1.00			1.10			(0.47	)		194
	20.13		5.95			17,467		1.00			1.12			(0.49	)		211

(f)	For the six months ended March 31, 2011 (Unaudited).

(g)

Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.13), $(0.23) and $(0.10) for Class A, Class C and Class Y shares, respectively, and the ratio of net investment loss to average net assets would have been (0.96)%, (1.71)% and (0.72)% for Class A, Class C and Class Y shares, respectively.

(h)

Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.21), $(0.36) and $(0.16) for Class A, Class C and Class Y shares, respectively, and the ratio of net investment loss to average net assets would have been (1.02)%, (1.74)% and (0.76)% for Class A, Class C and Class Y shares, respectively.

(i)

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

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

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

See accompanying notes to financial statements.

| 58

Financial Highlights (continued)

For a share outstanding throughout each period.


			Income (Loss) From Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)(b)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions
VALUE FUND
Class A*
3/31/2011(g)	$	16.78	$	0.08		$	3.24		$	3.32		$	(0.22	)	$	—		$	(0.22	)
9/30/2010		16.42		0.27	(h)		0.23			0.50			(0.14	)		—			(0.14	)
9/30/2009		17.93		0.23			(1.53	)		(1.30	)		(0.21	)		—			(0.21	)
9/30/2008		23.46		0.25			(4.45	)		(4.20	)		(0.18	)		(1.15	)		(1.33	)
9/30/2007		21.04		0.19			3.27			3.46			(0.13	)		(0.91	)		(1.04	)
9/30/2006**		19.69		0.02			1.33			1.35			—			—			—
Class B
3/31/2011(g)		16.77		0.02			3.23			3.25			(0.05	)		—			(0.05	)
9/30/2010		16.40		0.12	(h)		0.25			0.37			—			—			—
9/30/2009		17.80		0.14			(1.51	)		(1.37	)		(0.03	)		—			(0.03	)
9/30/2008		23.46		0.10			(4.45	)		(4.35	)		(0.16	)		(1.15	)		(1.31	)
9/30/2007***		24.00		0.00			(0.54	)		(0.54	)		—			—			—
Class C
3/31/2011(g)		16.58		0.01			3.21			3.22			(0.08	)		—			(0.08	)
9/30/2010		16.26		0.14	(h)		0.22			0.36			(0.04	)		—			(0.04	)
9/30/2009		17.79		0.12			(1.51	)		(1.39	)		(0.14	)		—			(0.14	)
9/30/2008		23.46		0.09			(4.43	)		(4.34	)		(0.18	)		(1.15	)		(1.33	)
9/30/2007***		24.00		0.01			(0.55	)		(0.54	)		—			—			—
Class Y*
3/31/2011(g)		16.82		0.11			3.23			3.34			(0.26	)		—			(0.26	)
9/30/2010		16.47		0.31	(h)		0.23			0.54			(0.19	)		—			(0.19	)
9/30/2009		18.01		0.28			(1.54	)		(1.26	)		(0.28	)		—			(0.28	)
9/30/2008		23.54		0.32			(4.45	)		(4.13	)		(0.25	)		(1.15	)		(1.40	)
9/30/2007		21.05		0.27			3.27			3.54			(0.14	)		(0.91	)		(1.05	)
9/30/2006		18.72		0.22			3.17			3.39			(0.27	)		(0.79	)		(1.06	)
Admin Class
3/31/2011(g)		16.74		0.05			3.24			3.29			(0.18	)		—			(0.18	)
9/30/2010****		16.72		0.18	(h)		(0.16	)		0.02			—			—			—

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

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

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

****	From commencement of Class operations on February 1, 2010 through September 30, 2010.

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

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

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

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

See accompanying notes to financial statements.

59 |


							Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%) (c)(d)			Net assets, end of the period (000’s)		Net expenses (%) (e)(f)			Gross expenses (%) (f)			Net investment income (%) (f)			Portfolio turnover rate (%)


$	19.88		19.87		$	158,437		0.95			0.95			0.91			15
	16.78		3.03			130,922		0.96			0.96			1.58	(h)		54
	16.42		(6.97	)		120,915		1.06			1.06			1.67			47
	17.93		(19.01	)		112,274		1.05			1.05			1.24			36	(i)
	23.46		16.85			17,500		1.09	(j)		1.09	(j)		0.79			41
	21.04		6.86			466		1.10			8.65			0.42			36

	19.97		19.39			3,243		1.70			1.70			0.17			15
	16.77		2.26			3,299		1.70			1.70			0.72	(h)		54
	16.40		(7.62	)		5,167		1.81			1.81			1.03			47
	17.80		(19.65	)		8,385		1.80	(k)		1.80	(k)		0.51			36	(i)
	23.46		(2.25	)		108		1.85			1.89			0.03			41

	19.72		19.44			12,712		1.70			1.70			0.16			15
	16.58		2.20			10,226		1.71			1.71			0.81	(h)		54
	16.26		(7.60	)		10,011		1.81			1.81			0.89			47
	17.79		(19.62	)		6,483		1.80	(k)		1.80	(k)		0.46			36	(i)
	23.46		(2.25	)		1,390		1.85			1.94			0.10			41

	19.90		19.98			1,145,941		0.70			0.70			1.17			15
	16.82		3.28			788,937		0.71			0.71			1.86	(h)		54
	16.47		(6.66	)		574,439		0.66			0.66			1.97			47
	18.01		(18.67	)		303,182		0.65			0.66			1.58			36	(i)
	23.54		17.25			182,002		0.72	(j)		0.72	(j)		1.19			41
	21.05		18.92			71,147		0.85			0.91			1.13			36

	19.85		19.75			1		1.14			1.14			0.54			15
	16.74		0.12			1		1.29			1.29			1.59	(h)		54

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

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

(g)	For the six months ended March 31, 2011 (Unaudited).

(h)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.14, $0.02, $0.01, $0.18 and $0.05 for Class A, Class B, Class C, Class Y and Admin Class shares, respectively, and the ratio of net investment income to average net assets would have been 0.84%, 0.10%, 0.09%, 1.08% and 0.50% for Class A, Class B, Class C, Class Y and Admin Class shares, respectively.

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

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

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

See accompanying notes to financial statements.

| 60

Notes to Financial Statements

March 31, 2011 (Unaudited)

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

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

Loomis Sayles Growth Fund (the “Growth Fund”)

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

Loomis Sayles Value Fund (the “Value Fund”)

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

Class A shares are sold with a maximum front-end sales charge of 5.75%. Class B shares do not pay a front-end sales charge; however, they are charged higher Rule 12b-1 fees, and are subject to a contingent deferred sales charge (“CDSC”) if such shares are redeemed within six years of purchase. After eight years of ownership, Class B shares convert to Class A shares. 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. Admin Class shares do not pay a front-end sales charge or a CDSC, but do pay a Rule 12b-1 fee. Admin Class shares are offered exclusively through intermediaries.

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

61 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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

The Funds may hold securities traded in foreign markets. Foreign securities are valued at the market price in the foreign market. However, if events occurring after the close of

| 62

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

the foreign market (but before the close of regular trading on the New York Stock Exchange) are believed to materially affect the value of those securities, such securities are fair valued pursuant to procedures approved by the Board of Trustees. When fair valuing securities, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities market activity and/or significant events that occur after the close of the foreign market and before the Funds calculate their net asset values. As of March 31, 2011, approximately 28% of the market value of Global Equity and Income Fund’s investments was fair valued pursuant to procedures approved by the Board of Trustees.

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

63 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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

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

When a Fund writes an option, an amount equal to the net premium received (the premium less commission) is recorded as a liability and is subsequently adjusted to the current value. Net premiums received for written options which expire are treated as realized gains. Net premiums received for written options which are exercised or closed are deducted from the cost or added to the proceeds on the underlying instrument or closing purchase transaction to determine the realized gain or loss. The Fund, as writer of a written option, bears the risk of an unfavorable change in the market value of the instrument underlying the written option.

Exchange-traded options have standardized contracts and are settled through a clearing house with fulfillment guaranteed by the credit of the exchange. Therefore, counterparty credit risks to the Funds are limited. Over-the-counter options are subject to the risk that the counterparty is unable or unwilling to meet its obligations under the option. For the six months ended March 31, 2011, the Funds were not party to any over-the-counter options.

| 64

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

f. Federal and Foreign Income Taxes. The Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of March 31, 2011 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

A Fund may be subject to foreign taxes on income and gains on investments that are accrued based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign governments may also impose taxes or other payments on investments with respect to foreign securities. Such taxes are accrued as applicable, and are reflected as foreign taxes payable on the Statements of Assets and Liabilities. In the event that realized gains on investments are subsequently offset by realized losses, taxes paid on realized gains may be returned to a Fund. Such amounts, if applicable, are reflected as foreign tax rebates receivable on the Statements of Assets and Liabilities.

g. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as net operating losses, paydown gains and losses, foreign currency transactions, gains realized from passive foreign investment companies (“PFICs”), defaulted bonds, premium amortization and expired capital loss carryforwards. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to deferred Trustees’ fees, forward contract mark to market, securities lending collateral gain/loss adjustment, straddle loss deferrals, wash sales, premium amortization, contingent payment debt instruments, PFIC un-reversed inclusions and defaulted bond interest. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

65 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the year ended September 30, 2010 was as follows:


	2010 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Global Equity and Income Fund	$	5,648,679	$	—	$	5,648,679
Growth Fund		—		—		—
Mid Cap Growth Fund		—		—		—
Value Fund		7,877,957		—		7,877,957

As of September 30, 2010, the capital loss carryforwards were as follows:


	Global Equity and Income Fund			Growth Fund			Mid Cap Growth Fund			Value Fund
Capital loss carryforward:
Expires September 30, 2011	$	—		$	(6,192,314	)	$	(21,142,388	)	$	—
Expires September 30, 2016		—			(75,866	)		—			—
Expires September 30, 2017		(54,290,711	)		(57,062,095	)		(33,667,761	)		(26,840,015	)
Expires September 30, 2018		(38,601,700	)		(34,687,546	)		(18,653,312	)		(54,112,420	)

Total capital loss carryforward	$	(92,892,411	)	$	(98,017,821	)	$	(73,463,461	)	$	(80,952,435	)

| 66

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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.

For the six months ended March 31, 2011, none of the Funds 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.

•

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

•

67 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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

The following is a summary of the inputs used to value the Funds’ investments as of March 31, 2011, at value:

Global Equity and Income Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks
Belgium	$	—	$	4,584,887	$	—	$	4,584,887
Brazil		12,447,938		5,597,407		—		18,045,345
British Virgin Islands		—		2,621,216		—		2,621,216
Canada		497,901		—		—		497,901
Cayman Islands		16,538,157		6,443,833		—		22,981,990
Chile		10,173,232		—		—		10,173,232
Denmark		—		12,082,426		—		12,082,426
Germany		—		23,206,193		—		23,206,193
Hong Kong		—		3,135,506		—		3,135,506
Italy		—		6,699,111		—		6,699,111
Japan		—		17,111,339		—		17,111,339
Korea		—		12,250,875		—		12,250,875
Mexico		3,996,853		—		—		3,996,853
Netherlands Antilles		4,792,911		—		—		4,792,911
Sweden		—		6,121,032		—		6,121,032
Switzerland		—		3,808,947		—		3,808,947
United Kingdom		—		31,939,293		—		31,939,293
United States		132,496,068		—		—		132,496,068

Total Common Stocks		180,943,060		135,602,065		—		316,545,125

Bonds and Notes
Non-Convertible Bonds
Korea		—		602,395		375,819		978,214
Supranationals		—		338,400		1,030,293		1,368,693
United States		33,628		68,449,649		—		68,483,277
All Other Non-convertible Bonds(a)		—		39,679,546		—		39,679,546

Total Non-Convertible Bonds		33,628		109,069,990		1,406,112		110,509,730

Convertible Bonds(a)		—		6,735,775		—		6,735,775
Municipals(a)		—		421,419		—		421,419

Total Bonds and Notes		33,628		116,227,184		1,406,112		117,666,924

| 68

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Global Equity and Income Fund

Asset Valuation Inputs (continued)


Description	Level 1		Level 2			Level 3		Total
Bank Loans(a)	$	—	$	69,475		$	—	$	69,475
Preferred Stocks(a)		803,600		634,601			—		1,438,201
Short-Term Investments		—		26,922,241			—		26,922,241

Total Investments		181,780,288		279,455,566			1,406,112		462,641,966

Forward Foreign Currency Contracts (unrealized appreciation)		—		63,319			—		63,319

Total	$	181,780,288	$	279,518,885		$	1,406,112	$	462,705,285


Liability Valuation Inputs

Description	Level 1		Level 2			Level 3		Total
Forward Foreign Currency Contracts (unrealized depreciation)	$	—	$	(19,703	)	$	—	$	(19,703	)

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

Growth Fund

Asset Valuation Inputs


Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	118,162,702	$	—	$	—	$	118,162,702
Short-Term Investments		—		8,715,666		—		8,715,666

Total	$	118,162,702	$	8,715,666	$	—	$	126,878,368

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

69 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Mid Cap Growth Fund

Asset Valuation Inputs


Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	139,127,116	$	—	$	—	$	139,127,116
Purchased Options		77,508		—		—		77,508
Short-Term Investments		—		4,484,321		—		4,484,321

Total	$	139,204,624	$	4,484,321	$	—	$	143,688,945

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

Value Fund

Asset Valuation Inputs


Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	1,289,201,905	$	—	$	—	$	1,289,201,905
Short-Term Investments		—		33,202,923		—		33,202,923

Total	$	1,289,201,905	$	33,202,923	$	—	$	1,322,404,828

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

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair values as of March 31, 2011:

Global Equity and Income Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2010		Accrued Discounts (Premiums)			Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
Korea	$	368,686	$	(339	)	$	—	$	7,472		$	—
Supranationals		—		248			—		(13,082	)		1,043,127

Total	$	368,686	$	(91	)	$	—	$	(5,610	)	$	1,043,127

| 70

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Asset Valuation Inputs (continued)


Investments in Securities	Sales		Transfers into Level 3		Transfers out of Level 3		Balance as of March 31, 2011		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at March 31, 2011
Bonds and Notes
Non-Convertible Bonds
Korea	$	—	$	—	$	—	$	375,819	$	7,472
Supranationals		—		—		—		1,030,293		(13,082	)

Total	$	—	$	—	$	—	$	1,406,112	$	(5,610	)

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

The Funds are subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. The Funds may enter into forward foreign currency contracts for hedging purposes to protect the value of the Funds’ holdings of foreign securities. The Funds may also use forward foreign currency contracts to gain exposure to foreign currencies, regardless of whether securities denominated in such currencies are held in the Funds. During the six months ended March 31, 2011, Global Equity and Income Fund engaged in forward foreign currency transactions for hedging purposes and to gain exposure to foreign currencies.

The Funds are subject to the risk of unpredictable declines in the value of individual equity securities and periods of below-average performance in individual securities or in the equity market as a whole. The Funds may use purchased put options and written call options to hedge against a decline in value of an equity security that it owns, and may use written put options to offset the cost of options used for hedging purposes. The Funds may also use purchased call options to gain exposure to an equity security without committing the capital required to buy it, while also limiting the downside risk associated with owning it. During the six months ended March 31, 2011, Mid Cap Growth Fund engaged in purchased put and written call options for hedging purposes, and in written put options to offset the cost of options used for hedging purposes.

Global Equity and Income Fund and Mid Cap Growth Fund are parties to agreements with counterparties that govern transactions in forward foreign currency contracts and over-the-counter options. The agreements contain credit-risk-related contingent fea-

71 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

tures that allow the counterparties to terminate open contracts early if the net asset value of a Fund declines beyond a certain threshold. If such features were to be triggered, the counterparties could request immediate settlement of open contracts at current fair value. As of March 31, 2011, there were no Funds that held derivative positions subject to credit-risk related contingent features that were in a net liability position (unrealized depreciation) by counterparty.

Forward foreign currency contracts and over-the-counter options are subject to the risk that the counterparty will be unwilling or unable to meet its obligations under the contracts. Global Equity and Income Fund and Mid Cap Growth Fund have mitigated this risk by entering into master netting agreements with counterparties that allow the Fund and the counterparty to net amounts owed by each related to derivative contracts to one net amount payable by either the Fund or the counterparty. As of March 31, 2011, the maximum amount of loss that Global Equity and Income Fund would incur if counterparties failed to meet their obligations, based on the value of derivative positions in an unrealized gain position as of period end, is $63,319 and the amount of loss that Global Equity and Income Fund would incur after taking into account master netting arrangements is $43,616.

The following is a summary of derivative instruments for Global Equity and Income Fund as of March 31, 2011:


Statements of Assets and Liabilities Caption	Foreign Exchange Contracts
Assets
Unrealized appreciation on forward foreign currency contracts	$	63,319
Liabilities
Unrealized depreciation on forward foreign currency contracts		(19,703	)

Transactions in derivative instruments for Global Equity and Income Fund during the six months ended March 31, 2011, were as follows:


Statements of Operations Caption	Foreign Exchange Contracts
Net Realized Gain on:
Foreign currency transactions*	$	98,101
Net Change in Unrealized Appreciation (Depreciation) on:
Foreign currency translations*		(15,621	)

*	Represents realized gain and change in unrealized appreciation (depreciation), respectively, for forward foreign currency contracts during the period.

| 72

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

The following is a summary of derivative instruments for Mid Cap Growth Fund as of March 31, 2011:


Statements of Assets and Liabilities Caption	Equity Contracts
Assets
Investments at value*	$	77,508

*	Represents purchased options, at value.

Transactions in derivative instruments for Mid Cap Growth Fund during the six months ended March 31, 2011 were as follows:


Statements of Operations Caption	Equity Contracts
Net Realized Gain on:
Investments*	$	(1,239,458	)
Options written		333,238
Net Change in Unrealized Appreciation (Depreciation) on:
Investments*		359,854
Options written		(111,228	)

*	Represents realized gain (loss) and change in unrealized appreciation (depreciation), respectively, for purchased options during the period.

Volume of forwards activity, as a percentage of net assets, for Global Equity and Income Fund, based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended March 31, 2011:


Global Equity and Income Fund	Forwards
Average Notional Amount Outstanding		1.07	%
Highest Notional Amount Outstanding		1.25	%
Lowest Notional Amount Outstanding		1.00	%
Notional Amount Outstanding as of March 31, 2011		1.08	%

Notional amounts outstanding at the end of the prior period are included in the averages above.

73 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Volume of option activity, as a percentage of net assets, for Mid Cap Growth Fund, based on month-end market values of equity securities underlying purchased and written options, at absolute value, was as follows for the six months ended March 31, 2011:


Mid Cap Growth Fund*	Call Options Written			Put Options Written			Put Options Purchased
Average Market Value of Underlying Securities		1.28	%		2.26	%		3.43	%
Highest Market Value of Underlying Securities		8.07	%		8.07	%		10.19	%
Lowest Market Value of Underlying Securities		0.00	%		0.00	%		0.00	%
Market Value of Underlying Securities as of March 31, 2011		0.00	%		0.00	%		1.83	%

*	Market value of underlying securities is determined by multiplying option shares by the price of the option’s underlying security, as determined by the Fund’s Pricing Policies and Procedures.

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


	Number of Contracts			Premiums
Outstanding at 9/30/2010		1,126		$	335,823
Options written		1,688			531,933
Options terminated in closing purchase transactions		(2,814	)		(867,756	)
Options exercised		—			—
Options expired		—			—

Outstanding at 3/31/2011		—		$	—

5. Purchases and Sales of Securities. For the six months ended March 31, 2011, 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	$	215,910,265	$	140,151,388
Growth Fund		16,009,757		8,941,779
Mid Cap Growth Fund		112,687,412		108,439,497
Value Fund		345,823,658		169,892,658

For the six months ended March 31, 2011, purchases and sales of U.S. Government/agency securities by Global Equity and Income Fund were $13,488,306 and $2,542,114, respectively.

| 74

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

6. Management Fees and Other Transactions with Affiliates.

a. Management Fees. Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to each Fund. Separate management agreements for each Fund in effect for the six months ended March 31, 2011, provided for fees at the following annual percentage rates of each Fund’s average daily net assets:


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

For the six months ended March 31, 2011, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:


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

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 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.

75 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

For the six months ended March 31, 2011, 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 Management Fees		Waivers of Management Fees¹		Net Management Fees		Gross			Net
Global Equity and Income Fund	$	1,434,635	$	—	$	1,434,635		0.75	%		0.75	%
Growth Fund		270,136		—		270,136		0.50	%		0.50	%
Mid Cap Growth Fund		460,970		47,918		413,052		0.75	%		0.67	%
Value Fund		2,961,907		—		2,961,907		0.50	%		0.50	%

¹	Management fee waivers are subject to possible recovery until September 30, 2012.

For the six months ended March 31, 2011, expense reimbursements related to the prior fiscal year were recovered as follows:


	Recovered Expenses
Fund	Class A		Class C		Class Y		Total
Global Equity and Income Fund	$	16,286	$	25,497	$	34,767	$	76,550

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. Natixis Distributors, L.P. (“Natixis Distributors”), a wholly owned subsidiary of Natixis US, has entered into a distribution agreement with the Trust. Pursuant to this agreement, Natixis Distributors serves as principal underwriter of the Funds of the Trust.

Pursuant to Rule 12b-1 under the 1940 Act, the Trust has adopted a Service Plan relating to the 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”).

| 76

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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

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

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

For the six months ended March 31, 2011, the Funds paid the following service and distribution fees:


	Service Fees								Distribution Fees
Fund	Class A		Class B		Class C		Admin Class		Class B		Class C		Admin Class
Global Equity and Income Fund	$	102,397	$	—	$	157,656	$	—	$	—	$	472,968	$	—
Growth Fund		38,698		4,862		16,359		—		14,587		49,076		—
Mid Cap Growth Fund		100,408		—		806		—		—		2,418		—
Value Fund		182,979		4,179		13,891		2		12,538		41,674		2

77 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Trusts”), Hansberger International Series and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion and 0.0350% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the six months ended March 31, 2011, each Fund paid the following administrative fees to Natixis Advisors:


Fund	Administrative Fees
Global Equity and Income Fund	$	89,357
Growth Fund		25,242
Mid Cap Growth Fund		28,713
Value Fund		276,739

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

For the six months ended March 31, 2011, the Funds paid the following sub-transfer agent fees, which are reflected in transfer agent fees and expenses in the Statements of Operations.


Fund	Sub-Transfer Agent Fees
Global Equity and Income Fund	$	90,671
Growth Fund		29,444
Mid Cap Growth Fund		56,163
Value Fund		637,762

| 78

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

e. Commissions. Commissions (including CDSCs) on Fund shares retained by Natixis Distributors during the six months ended March 31, 2011, were as follows:


Fund	Commissions
Global Equity and Income Fund	$	311,993
Growth Fund		15,965
Mid Cap Growth Fund		8,658
Value Fund		25,765

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 Natixis Advisors, Natixis Distributors, Natixis US, or their affiliates. The Chairperson of the Board receives a retainer fee at the annual rate of $250,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $80,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chairman receives an additional retainer fee at the annual rate of $15,000. Each Contract Review and Governance Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the funds until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain funds of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts, and Hansberger International Series, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees on the Statements of Assets and Liabilities.

g. Payments by Affiliates. For the six months ended March 31, 2011, Loomis Sayles reimbursed Global Equity and Income Fund $332 for losses incurred in connection with a trading error.

79 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

For the six months ended March 31, 2011, 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 on the Statements of Operations. For the six months ended March 31, 2011, amounts rebated under these agreements were as follows:


Fund	Rebates
Global Equity and Income Fund	$	9,184
Growth Fund		711
Mid Cap Growth Fund		14,337
Value Fund		27,765

9. 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.

At March 31, 2011, Global Equity and Income Fund held Taiwan dollars, valued at $2,267,842, that were restricted as to withdrawal or usage. This amount represents the proceeds from sales of securities in Taiwan. These proceeds cannot be repatriated until the Fund engages a tax agent in Taiwan for the purpose of performing certain duties for compliance with Taiwan’s tax laws.

| 80

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

10. Concentration of Ownership. At March 31, 2011, Loomis Sayles Funded Pension Plan and Trust (“Pension Plan”) and the Loomis Sayles Employees’ Profit Sharing Retirement Plan (“Retirement Plan”) held shares of beneficial interest in the Funds as follows:


Fund	Pension Plan		Retirement Plan
Global Equity and Income Fund		975,173		634,052
Growth Fund		1,236,821		1,833,895
Mid Cap Growth Fund		332,294		369,741
Value Fund		454,056		732,306

From time to time, the Funds may have a concentration of several shareholders having a significant percentage of shares outstanding. Investment activities of these shareholders could have material impacts on the Funds. As of March 31, 2011, certain Funds had shareholders that held greater than 5% of the fund’s outstanding shares. Such ownership may be beneficially held by multiple individuals or entities other than the owner of record. The number of greater than 5% shareholders and the aggregate percentage of net assets represented by such ownership was as follows:


Fund	Number of Greater Than 5% Shareholders		Percentage of Ownership
Global Equity and Income Fund		1		7.01	%
Growth Fund		2		13.46	%

81 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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


	Six Months Ended March 31, 2011					Year Ended September 30, 2010
Global Equity and Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	2,379,521		$	37,312,683		2,185,512		$	29,116,463
Issued in connection with the reinvestment of distributions	72,247			1,114,772		73,498			923,132
Redeemed	(730,336	)		(11,460,639	)	(1,460,708	)		(18,916,251	)

Net change	1,721,432		$	26,966,816		798,302		$	11,123,344

Class C
Issued from the sale of shares	2,209,691		$	34,385,819		1,778,019		$	23,110,162
Issued in connection with the reinvestment of distributions	29,527			453,530		53,353			667,977
Redeemed	(707,770	)		(10,963,089	)	(2,091,087	)		(27,231,329	)

Net change	1,531,448		$	23,876,260		(259,715	)	$	(3,453,190	)

Class Y
Issued from the sale of shares	4,669,125		$	73,356,581		3,286,223		$	43,183,799
Issued in connection with the reinvestment of distributions	117,939			1,824,523		145,986			1,836,503
Redeemed	(923,784	)		(14,551,929	)	(2,307,485	)		(29,912,166	)

Net change	3,863,280		$	60,629,175		1,124,724		$	15,108,136

Increase (decrease) from capital share transactions	7,116,160		$	111,472,251		1,663,311		$	22,778,290

| 82

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

11. Capital Shares (continued).


	Six Months Ended March 31, 2011					Year Ended September 30, 2010
Growth Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	301,778		$	1,692,320		843,820		$	4,085,570
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(744,102	)		(4,116,588	)	(2,435,871	)		(11,723,591	)

Net change	(442,324	)	$	(2,424,268	)	(1,592,051	)	$	(7,638,021	)

Class B
Issued from the sale of shares	10,896		$	56,719		26,879		$	126,650
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(204,566	)		(1,079,579	)	(449,262	)		(2,069,094	)

Net change	(193,670	)	$	(1,022,860	)	(422,383	)	$	(1,942,444	)

Class C
Issued from the sale of shares	93,563		$	491,289		131,088		$	596,834
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(296,227	)		(1,570,718	)	(1,381,682	)		(6,253,716	)

Net change	(202,664	)	$	(1,079,429	)	(1,250,594	)	$	(5,656,882	)

Class Y
Issued from the sale of shares	2,640,814		$	15,816,957		1,951,737		$	9,949,238
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(579,316	)		(3,444,935	)	(4,207,016	)		(21,249,147	)

Net change	2,061,498		$	12,372,022		(2,255,279	)	$	(11,299,909	)

Increase (decrease) from capital share transactions	1,222,840		$	7,845,465		(5,520,307	)	$	(26,537,256	)

83 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

11. Capital Shares (continued).


	Six Months Ended March 31, 2011					Year Ended September 30, 2010
Mid Cap Growth Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	719,262		$	19,502,978		1,543,225		$	34,666,538
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(543,449	)		(14,874,691	)	(1,700,694	)		(35,573,122	)

Net change	175,813		$	4,628,287		(157,469	)	$	(906,584	)

Class C
Issued from the sale of shares	35,912		$	925,542		2,038		$	43,089
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(1,135	)		(32,499	)	(650	)		(13,453	)

Net change	34,777		$	893,043		1,388		$	29,636

Class Y
Issued from the sale of shares	439,619		$	12,266,013		303,029		$	6,515,222
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(224,669	)		(6,320,672	)	(363,286	)		(7,649,693	)

Net change	214,950		$	5,945,341		(60,257	)	$	(1,134,471	)

Increase (decrease) from capital share transactions	425,540		$	11,466,671		(216,338	)	$	(2,011,419	)

| 84

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

11. Capital Shares (continued).


	Six Months Ended March 31, 2011					Year Ended September 30, 2010*
Value Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	1,060,944		$	19,919,404		2,979,169		$	49,942,924
Issued in connection with the reinvestment of distributions	88,461			1,648,031		60,746			1,001,699
Redeemed	(982,094	)		(18,335,349	)	(2,599,420	)		(43,052,197	)

Net change	167,311		$	3,232,086		440,495		$	7,892,426

Class B
Issued from the sale of shares	10,905		$	210,614		19,365		$	325,859
Issued in connection with the reinvestment of distributions	438			8,207		—			—
Redeemed	(45,702	)		(860,707	)	(137,739	)		(2,333,285	)

Net change	(34,359	)	$	(641,886	)	(118,374	)	$	(2,007,426	)

Class C
Issued from the sale of shares	148,380		$	2,829,927		202,556		$	3,401,414
Issued in connection with the reinvestment of distributions	1,601			29,658		939			15,401
Redeemed	(122,042	)		(2,226,119	)	(202,655	)		(3,347,711	)

Net change	27,939		$	633,466		840		$	69,104

Class Y
Issued from the sale of shares	15,189,477		$	274,042,686		24,167,438		$	406,626,788
Issued in connection with the reinvestment of distributions	734,748			13,695,698		379,395			6,260,027
Redeemed	(5,261,991	)		(98,405,790	)	(12,514,723	)		(207,737,479	)

Net change	10,662,234		$	189,332,594		12,032,110		$	205,149,336

Admin Class
Issued from the sale of shares	—		$	—		60		$	1,002
Issued in connection with the reinvestment of distributions	1			11		—			—
Redeemed	—			—		—			—

Net change	1		$	11		60		$	1,002

Increase (decrease) from capital share transactions	10,823,126		$	192,556,271		12,355,131		$	211,104,442

*	From commencement of operations on February 1, 2010 through September 30, 2010 for Admin Class shares.

85 |

Loomis Sayles Small Cap Growth Fund

Loomis Sayles Small Cap Value Fund



TABLE OF CONTENTS
Fund and Manager Review			1
Portfolio of Investments			10
Statements of Assets and Liabilities			24
Statements of Operations			25
Statements of Changes in Net Assets			26
Financial Highlights			27
Notes to Financial Statements			29

SEMI-ANNUAL REPORT

MARCH 31, 2011

LOOMIS SAYLES SMALL CAP GROWTH FUND

Fund and manager review

FUND FACTS

Managers:

Mark F. Burns, CFA

John Slavik, CFA

Symbols:


Institutional Class		LSSIX
Retail Class		LCGRX

Objective:

Long-term capital growth from investments in common stocks or other equity securities

Strategy:

Invests at least 80% of its net assets (plus any borrowings made for investment purposes) in equity securities of companies with market capitalizations that fall within the capitalization range of the Russell 2000 Index or is $3 billion or less at the time of investment. Unlike the Index, the Fund may invest in companies of any size.

The fund may invest any portion of its assets in Canadian securities and up to 20% of assets in other foreign securities, including emerging markets securities.

Fund Inception Date:

December 31, 1996

Net Assets:

$249.5 million

Market Conditions

Stocks rallied sharply during the six-month period, fueled by a modest improvement in U.S. business conditions and renewed investor optimism stemming from continued accommodation from the Federal Reserve Board (the Fed). These factors, combined with better-than-expected corporate profits, drove share prices higher despite political turmoil in North Africa and the Middle East and the earthquake, tsunami and nuclear crisis in Japan. Risk appetites stayed fairly high, and equities remained the vehicle of choice for investors. Overall, small-cap stocks led the market higher, and growth stocks outperformed value stocks.

Performance Results

For the six months ended March 31, 2011, Institutional Class shares of Loomis Sayles Small Cap Growth Fund returned 32.43%. The fund outperformed its benchmark, the Russell 2000 Growth Index, which returned 27.93% for the period.

Explanation of Fund Performance

Strong stock selection primarily drove the fund’s relative outperformance. Our choices were particularly strong in the consumer discretionary sector, where IMAX and Tempur-Pedic International drove results. Shares of IMAX, the operator of large screen movie theaters, rose sharply after beating earnings and raising estimates for new theater installations. Tempur-Pedic shares rose sharply after reporting better-than-expected earnings due to market share gains for the company’s Cloud Collection mattresses, which appeal to the higher end of the market. Stock selection and an overweight position led to favorable relative results in the energy sector with Rosetta Resources Inc. and T-3 Energy Services as the top performers. Rosetta Resources, an oil and gas exploration and production company, rose sharply in the fourth quarter after reporting strong earnings. T-3 Energy Services, an oilfield products and service company, saw shares spike after the company announced it was being acquired by Robbins and Myers in the fourth quarter. Stock selection also contributed favorably in the producer durables sector. Shares of Ladish, a metal processing and fabrication company,

1 |

spiked after Allegheny Technologies agreed to acquire the company at a nearly 60% premium. MasTec, a building and construction company focusing on utilities and communications infrastructure, advanced on solid earnings and revenue growth.

Stock selection was weakest in the financial services sector, the only sector to materially detract from relative performance. Shares of NetSpend Holding Inc., a provider of pre-paid debit cards, declined due to poor business fundamentals, while investment-banking firm Greenhill tumbled on a weak fourth quarter and uneven mergers and acquisitions activity.

The largest change in sector weights during the period was a reduction in the healthcare sector. We sold specific companies within the medical device, healthcare services and pharmaceutical/biotechnology industries. We also reduced the fund’s weight in the consumer discretionary sector, albeit to a lesser extent, primarily by selling holdings in the retail industry. The biggest beneficiaries of the sales proceeds were the producer durables, technology and materials and processing sectors.

Outlook

Core inflation statistics have remained well within the Fed’s informal target range, but many commentators believe that the Fed may need to snug things up somewhat in the next few months. The Fed’s second round of large-scale Treasury purchases, which is referred to as “QE2”, is scheduled to end on June 30, 2011. At this point we do not expect an extension of asset purchases in the form of a “QE3” unless the economy takes an unexpected turn to the downside. Employment conditions have improved substantially over the past several months, and the employment reports for the months of February and March, 2011, made for some of the best reading we have seen in several years. Our working assumption is that investors and corporate executives need to plan for somewhat higher energy and other commodity input costs in the months ahead. This may be a factor in an eventual plateauing of corporate margins. However, this is built into our outlook in that we are anticipating about 15% earnings growth for the S&P 500 this year, decelerating to 10% or so next year.

What You Should Know:

Investments in the fund are subject to a number of risks. Please see the “Principal Risks” section of the fund’s prospectus. The purchase of fund shares should be seen as a long-term investment.

| 2

LOOMIS SAYLES SMALL CAP GROWTH FUND

Average Annual Returns

March 31, 2011



	6 months			1 year			5 years			10 years

Institutional Class (Inception 12/31/96)		32.43	%		39.07	%		7.29	%		4.00	%
Retail Class (Inception 12/31/96)		32.32			38.67			7.04			3.75

Comparative Performance
Russell 2000 Growth Index^(c)^(d)		27.93			31.04			4.34			6.44
Russell 2000 Index^(c)		25.48			25.79			3.35			7.87
Lipper Small-Cap Growth Funds Index^(c)		25.75			28.19			3.28			5.63

Gross expense ratio (before fee waivers and/or expense reimbursements)*
Institutional: 1.09% Retail: 1.42%

Net expense ratio (after fee waivers and/or expense reimbursements)*
Institutional: 1.03% Retail: 1.28%

As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/12. Contracts are reevaluated on an annual basis.

Cumulative Performance

March 31, 2001 to March 31, 2011^(a)(b)

LOGO

Data quoted reflects past performance and cannot guarantee future results. Average annual total returns assume reinvestment of dividends and capital gains distributions. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. For performance current to the most recent month end, please visit www.loomissayles.com. Current performance may be higher or lower than quoted.

Returns do not reflect the taxes that a shareholder would pay on fund distributions or the redemption of shares. Periods of less than one year are not annualized. Performance data reflects certain fee waivers and/or expense reimbursements, if any, without which performance would be lower.

^(a)

Cumulative performance is shown for the Institutional Class. Performance of the Retail Class would be lower due to higher fees and expenses.

^(b)

The mountain chart is based on the initial investment minimum of $100,000 for the Institutional Class.

^(c)

See page 7 for a description of the indices.

^(d)

Effective August 20, 2010, the Russell 2000 Growth Index replaced the Russell 2000 Index as the fund’s primary benchmark.

3 |

LOOMIS SAYLES SMALL CAP VALUE FUND

Fund and manager review

FUND FACTS

Managers:

Joseph Gatz, CFA

Daniel Thelen, CFA*

Symbols:


Institutional Class		LSSCX
Retail Class		LSCRX
Admin Class		LSVAX

Objective:

Long-term capital growth from investments in common stocks or other equity securities

Strategy:

The fund may invest up to 20% of its assets in securities of foreign issuers including emerging market securities.

Fund Inception Date:

May 13, 1991

Class Inception Date:

Institutional Class: May 13, 1991

Retail Class: December 31, 1996

Admin Class: January 2, 1998

Net Assets:

$1,146.4 million

Effective June 1, 2011, Daniel Thelen will no longer serve as a portfolio manager of the fund.

Market Conditions

Stocks rallied sharply during the six-month period, fueled by a modest improvement in U.S. business conditions and renewed investor optimism stemming from continued accommodation from the Federal Reserve Board. These factors, combined with better-than-expected corporate profits, drove share prices higher despite a host of challenges: political turmoil in North Africa and the Middle East and an earthquake, tsunami and nuclear crisis in Japan. Risk appetites stayed fairly high, and equities remained the vehicle of choice for investors. Overall, small-cap stocks led the market higher, and growth stocks outperformed value stocks.

Performance Results

For the six months ended March 31, 2011, Institutional Class shares of Loomis Sayles Small Cap Value Fund returned 26.11%. The fund outperformed its benchmark, the Russell 2000 Value Index, which returned 22.97% for the period.

Explanation of Fund Performance

All sectors of the portfolio delivered double-digit returns for the period. Stock selection, particularly in the producer durables and financial services sectors, drove the fund’s outperformance relative to the benchmark. Within producer durables, the fund’s position in Baldor Electric, a manufacturer of industrial electric motors, was its top contributor. The company agreed to be acquired by Switzerland-based power and automation engineering company ABB Ltd. for a 41% premium to prior trading levels. In the financial services sector, our stock selections in the brokerage, transaction processing and consumer lending industries contributed positively to performance. In addition, an underweight in the financial services sector helped, as the group trailed the small cap value index. Overall, the fund’s sector weights contributed positively to relative performance, with overweight positions in outperforming sectors, including producer durables and materials and processing, offsetting a slight underweight in energy stocks.

| 4

What You Should Know:

On a relative basis, an underweight in the energy sector, which was the market’s top-performing sector, and weak stock selection in the real estate investment trust (REIT) segment of the financials sector detracted from results. REIT stocks lagged during the six-month period. While the fund benefited from having a relatively small weight in the sector, stock selection lagged due to weaker performance in certain data center and health-care facility REITs.

Changes to the portfolio during the six months were largely driven by company-specific factors, with the net result showing an increase in technology holdings and a reduction in consumer durables. The technology weight increased with the addition of several communications-related stocks positioned to benefit from increasing demands on enterprise and carrier-based networks.

Outlook

5 |

LOOMIS SAYLES SMALL CAP VALUE FUND

Average Annual Returns

March 31, 2011



	6 months			1 year			5 years			10 years

Institutional Class (Inception 5/13/91)		26.11	%		28.01	%		5.18	%		9.98	%
Retail Class (Inception 12/31/96)		25.96			27.76			4.92			9.71
Admin Class (Inception 1/2/98)		25.78			27.43			4.65			9.43

Comparative Performance
Russell 2000 Value Index^(c)		22.97			20.63			2.23			9.01
Russell 2000 Index^(c)		25.48			25.79			3.35			7.87
Lipper Small-Cap Core Funds Index^(c)		24.22			25.72			4.01			8.60

Gross expense ratio (before fee waivers and/or expense reimbursements)*
Institutional: 1.00% Retail: 1.30% Admin: 1.62%

Net expense ratio (after fee waivers and/or expense reimbursements)*
Institutional: 0.96% Retail: 1.21% Admin: 1.46%

As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/12. Contracts are reevaluated on an annual basis.

Cumulative Performance

March 31, 2001 to March 31, 2011^(a)(b)

LOGO

^(a)

Cumulative performance is shown for the Institutional Class. Performance of the Retail and Admin Classes would be lower due to higher fees and expenses.

^(b)

The mountain chart is based on the initial investment minimum of $100,000 for the Institutional Class.

^(c)

See page 7 for a description of the indices.

| 6

ADDITIONAL INFORMATION

Index Definitions

Indices are unmanaged and do not have expenses that affect results, unlike mutual funds. Index returns are adjusted for the reinvestment of capital gain distributions and income dividends. It is not possible to invest directly in an index.

Lipper Small-Cap Core Funds Index is an unmanaged index that tracks the average performance of the 30 largest small-cap core funds according to Lipper Inc.

Lipper Small-Cap Growth Funds Index is an unmanaged index that tracks the average performance of the 30 largest small-cap growth funds according to Lipper Inc.

Source: Lipper, Inc.

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

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

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

Proxy Voting Information

A description of the funds’ proxy voting policies and procedures is available without charge, upon request, (i) by calling Loomis Sayles at 800-633-3330; (ii) on the funds’ website, www.loomissayles.com, and (iii) on the SEC’s website, www.sec.gov. Information about how the funds voted proxies relating to portfolio securities during the 12 months ended June 30, 2010 is available on (i) the funds’ website and (ii) the SEC’s website.

Quarterly Portfolio Schedules

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. These costs are described in more detail in the funds’ prospectus. The examples below are intended to help you understand the ongoing costs of investing in the funds and help you compare these with the ongoing costs of investing in other mutual funds.

7 |

The first line in the table of each fund shows the actual amount of fund expenses you would have paid on a $1,000 investment in the fund from October 1, 2010 through March 31, 2011. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual fund returns and expenses. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example $8,600 account value divided by $1,000 = 8.6) and multiply the result by the number in the Expenses Paid During the Period column as shown below for your class.

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

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

Loomis Sayles Small Cap Growth Fund


Institutional Class	Beginning Account Value 10/1/2010		Ending Account Value 3/31/2011		Expenses Paid During Period* 10/1/2010 – 3/31/2011
Actual		$1,000.00		$1,324.30		$5.79
Hypothetical (5% return before expenses)		$1,000.00		$1,019.95		$5.04

Retail Class
Actual		$1,000.00		$1,323.20		$7.24
Hypothetical (5% return before expenses)		$1,000.00		$1,018.70		$6.29

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

| 8

Loomis Sayles Small Cap Value Fund


Institutional Class	Beginning Account Value 10/1/2010		Ending Account Value 3/31/2011		Expenses Paid During Period* 10/1/2010 – 3/31/2011
Actual		$1,000.00		$1,261.10		$5.07
Hypothetical (5% return before expenses)		$1,000.00		$1,020.44		$4.53

Retail Class
Actual		$1,000.00		$1,259.60		$6.48
Hypothetical (5% return before expenses)		$1,000.00		$1,019.20		$5.79

Admin Class
Actual		$1,000.00		$1,257.80		$7.88
Hypothetical (5% return before expenses)		$1,000.00		$1,017.95		$7.04

* Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.90%, 1.15% and 1.40% for Institutional, Retail and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

9 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Growth Fund


Shares		Description		Value (†)


	Common Stocks – 95.5% of Net Assets

		Aerospace & Defense – 2.1%
	39,011	HEICO Corp.		$	2,438,968
	142,718	Hexcel Corp.(b)			2,810,117

					5,249,085

		Air Freight & Logistics – 2.3%
	43,812	Atlas Air Worldwide Holdings, Inc.(b)			3,054,573
	71,258	HUB Group, Inc., Class A(b)			2,578,827

					5,633,400

		Auto Components – 2.1%
	197,069	Amerigon, Inc.(b)			3,009,244
	55,214	Tenneco, Inc.(b)			2,343,834
			��
					5,353,078

		Biotechnology – 3.3%
	103,488	Cepheid, Inc.(b)			2,899,734
	65,349	Genomic Health, Inc.(b)			1,607,585
	89,404	Incyte Corp. Ltd.(b)			1,417,053
	28,201	Pharmasset, Inc.(b)			2,219,701

					8,144,073

		Building Products – 1.7%
	122,454	NCI Building Systems, Inc.(b)			1,551,492
	83,370	Trex Company, Inc.(b)			2,719,530

					4,271,022

		Capital Markets – 2.7%
	70,922	Evercore Partners, Inc., Class A			2,431,915
	24,794	Greenhill & Co., Inc.			1,631,197
	37,402	Stifel Financial Corp.(b)			2,685,090

					6,748,202

		Commercial Banks – 2.1%
	45,759	Signature Bank(b)			2,580,807
	45,105	SVB Financial Group(b)			2,567,828

					5,148,635

		Commercial Services & Supplies – 1.1%
	93,651	Waste Connections, Inc.			2,696,212

		Communications Equipment – 1.8%
	66,552	Aruba Networks, Inc.(b)			2,252,119
	89,655	Ciena Corp.(b)			2,327,444

					4,579,563

		Construction & Engineering – 0.9%
	101,658	MasTec, Inc.(b)			2,114,486

See accompanying notes to financial statements.

| 10

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)


	Common Stocks – continued

		Diversified Consumer Services – 1.1%
	77,636	K12, Inc.(b)	$	2,616,333

		Diversified Financial Services – 0.9%
	64,040	MSCI, Inc., Class A(b)		2,357,953

		Electrical Equipment – 1.7%
	115,709	GrafTech International Ltd.(b)		2,387,077
	32,649	Polypore International, Inc.(b)		1,879,929

				4,267,006

		Electronic Equipment, Instruments & Components – 1.8%
	44,820	IPG Photonics Corp.(b)		2,585,218
	113,207	Maxwell Technologies, Inc.(b)		1,955,085

				4,540,303

		Energy Equipment & Services – 1.9%
	23,120	Lufkin Industries, Inc.		2,161,026
	29,528	Oceaneering International, Inc.(b)		2,641,280

				4,802,306

		Food & Staples Retailing – 0.6%
	38,072	Fresh Market, Inc. (The)(b)		1,436,837

		Food Products – 1.1%
	50,006	Diamond Foods, Inc.		2,790,335

		Health Care Equipment & Supplies – 5.8%
	173,477	Accuray, Inc.(b)		1,566,497
	13,022	HeartWare International, Inc.(b)		1,113,772
	144,144	Insulet Corp.(b)		2,972,249
	139,502	Natus Medical, Inc.(b)		2,343,633
	77,016	NxStage Medical, Inc.(b)		1,692,812
	85,725	Volcano Corp.(b)		2,194,560
	57,023	Zoll Medical Corp.(b)		2,555,201

				14,438,724

		Health Care Providers & Services – 5.6%
	103,354	ExamWorks Group, Inc.(b)		2,297,559
	85,609	Hanger Orthopedic Group, Inc.(b)		2,228,402
	29,949	HMS Holdings Corp.(b)		2,451,326
	29,175	MWI Veterinary Supply, Inc.(b)		2,353,839
	96,724	PSS World Medical, Inc.(b)		2,626,057
	118,477	Team Health Holdings, Inc.(b)		2,070,978

				14,028,161

		Health Care Technology – 1.3%
	56,972	SXC Health Solutions Corp.(b)		3,122,066

See accompanying notes to financial statements.

11 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)


	Common Stocks – continued

		Hotels, Restaurants & Leisure – 3.6%
	60,195	Life Time Fitness, Inc.(b)	$	2,245,875
	18,969	Panera Bread Co., Class A(b)		2,409,063
	169,970	Shuffle Master, Inc.(b)		1,815,280
	141,553	Texas Roadhouse, Inc.		2,404,986

				8,875,204

		Household Durables – 1.4%
	67,666	Tempur-Pedic International, Inc.(b)		3,427,960

		Internet Software & Services – 7.2%
	49,906	Ancestry.com, Inc.(b)		1,769,168
	53,580	comScore, Inc.(b)		1,581,146
	69,646	Constant Contact, Inc.(b)		2,430,645
	84,430	DealerTrack Holdings, Inc.(b)		1,938,513
	126,118	Dice Holdings, Inc.(b)		1,905,643
	55,307	IntraLinks Holdings, Inc.(b)		1,478,909
	47,605	SAVVIS, Inc.(b)		1,765,670
	91,654	Vocus, Inc.(b)		2,370,172
	52,508	WebMD Health Corp.(b)		2,804,977

				18,044,843

		IT Services – 0.7%
	125,241	InterXion Holding NV(b)		1,628,133

		Machinery – 2.5%
	33,338	Chart Industries, Inc.(b)		1,834,923
	45,306	Robbins & Myers, Inc.		2,083,623
	108,171	Westport Innovations, Inc.(b)		2,377,599

				6,296,145

		Media – 1.1%
	84,301	Imax Corp.(b)		2,695,946

		Metals & Mining – 0.7%
	28,436	Schnitzer Steel Industries, Inc., Class A		1,848,624

		Oil, Gas & Consumable Fuels – 5.6%
	50,695	Approach Resources, Inc.(b)		1,703,352
	63,418	Brigham Exploration Co.(b)		2,357,881
	83,134	Comstock Resources, Inc.(b)		2,572,166
	56,990	Oasis Petroleum, Inc.(b)		1,802,024
	56,520	Rosetta Resources, Inc.(b)		2,686,961
	67,313	World Fuel Services Corp.		2,733,581

				13,855,965

		Pharmaceuticals – 2.0%
	70,821	Auxilium Pharmaceuticals, Inc.(b)		1,520,527
	160,727	Nektar Therapeutics(b)		1,522,084

See accompanying notes to financial statements.

| 12

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)


	Common Stocks – continued

		Pharmaceuticals – continued
	137,624	Questcor Pharmaceuticals, Inc.(b)	$	1,983,162

				5,025,773


		Professional Services – 3.2%
	59,612	Advisory Board Co. (The)(b)		3,070,018
	55,070	Corporate Executive Board Co. (The)		2,223,176
	31,661	IHS, Inc., Class A(b)		2,809,914

				8,103,108

		Road & Rail – 1.0%
	43,493	Genesee & Wyoming, Inc., Class A(b)		2,531,293

		Semiconductors & Semiconductor Equipment – 8.9%
	130,665	Advanced Energy Industries, Inc.(b)		2,136,373
	53,632	Cavium Network, Inc.(b)		2,409,686
	52,742	Cymer, Inc.(b)		2,984,142
	171,155	GT Solar International, Inc.(b)		1,824,512
	37,467	Hittite Microwave Corp.(b)		2,389,271
	97,199	Inphi Corp.(b)		2,042,151
	57,929	Netlogic Microsystems, Inc.(b)		2,434,176
	41,378	Power Integrations, Inc.		1,586,019
	36,880	Silicon Laboratories, Inc.(b)		1,593,585
	57,627	Varian Semiconductor Equipment Associates, Inc.(b)		2,804,706

				22,204,621

		Software – 7.9%
	112,619	Ariba, Inc.(b)		3,844,813
	45,021	Concur Technologies, Inc.(b)		2,496,414
	76,024	Informatica Corp.(b)		3,970,734
	70,201	QLIK Technologies, Inc.(b)		1,825,226
	72,365	SuccessFactors, Inc.(b)		2,828,748
	48,462	Ultimate Software Group, Inc.(The)(b)		2,847,142
	62,864	VanceInfo Technologies, Inc., ADR(b)		1,974,558

				19,787,635

		Specialty Retail – 4.6%
	93,711	Asbury Automotive Group, Inc.(b)		1,732,716
	62,075	DSW, Inc., Class A(b)		2,480,517
	68,824	Hibbett Sports, Inc.(b)		2,464,587
	49,959	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		2,404,527
	72,365	Vitamin Shoppe, Inc.(b)		2,448,108

				11,530,455

		Textiles, Apparel & Luxury Goods – 2.7%
	24,343	Deckers Outdoor Corp.(b)		2,097,149
	62,241	G-III Apparel Group Ltd.(b)		2,339,017

See accompanying notes to financial statements.

13 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)


	Common Stocks – continued

		Textiles, Apparel & Luxury Goods – continued
	35,520	Phillips-Van Heusen Corp.	$	2,309,866

				6,746,032

		Trading Companies & Distributors – 0.5%
	53,717	Titan Machinery, Inc.(b)		1,356,354


		Total Common Stocks (Identified Cost $174,761,736)		238,295,871


	Principal Amount

	Short-Term Investments – 6.4%
$	16,104,356	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011 at 0.000% to be repurchased at $16,104,356 on 4/01/2011 collateralized by $17,270,000 Federal Home Loan Mortgage Corp., 3.310% due 11/10/2020 valued at $16,428,088 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $16,104,356)		16,104,356


		Total Investments – 101.9% (Identified Cost $190,866,092)(a)		254,400,227
		Other assets less liabilities—(1.9)%		(4,863,744	)

		Net Assets – 100.0%	$	249,536,483


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
		At March 31, 2011, the net unrealized appreciation on investments based on a cost of $190,865,183 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	$	64,102,669
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(567,625	)

		Net unrealized appreciation	$	63,535,044

	(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.

| 14

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Growth Fund – continued

Industry Summary at March 31, 2011 (Unaudited)


Semiconductors & Semiconductor Equipment	8.9	%
Software	7.9
Internet Software & Services	7.2
Health Care Equipment & Supplies	5.8
Health Care Providers & Services	5.6
Oil, Gas & Consumable Fuels	5.6
Specialty Retail	4.6
Hotels, Restaurants & Leisure	3.6
Biotechnology	3.3
Professional Services	3.2
Capital Markets	2.7
Textiles, Apparel & Luxury Goods	2.7
Machinery	2.5
Air Freight & Logistics	2.3
Auto Components	2.1
Aerospace & Defense	2.1
Commercial Banks	2.1
Pharmaceuticals	2.0
Other Investments, less than 2% each	21.3
Short-Term Investments	6.4

Total Investments	101.9
Other assets less liabilities	(1.9	)

Net Assets	100.0	%

See accompanying notes to financial statements.

15 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Value Fund


Shares		Description	Value (†)


	Common Stocks – 96.8% of Net Assets

		Air Freight & Logistics – 1.1%
	187,245	Atlas Air Worldwide Holdings, Inc.(b)	$	13,054,721

		Auto Components – 1.4%
	483,703	Dana Holding Corp.(b)		8,411,595
	172,744	Tenneco, Inc.(b)		7,332,983

				15,744,578

		Building Products – 0.8%
	102,030	Armstrong World Industries, Inc.		4,720,928
	376,559	Griffon Corp.(b)		4,944,220

				9,665,148

		Capital Markets – 2.6%
	555,653	Ares Capital Corp.		9,390,536
	698,225	Fifth Street Finance Corp.		9,321,304
	162,890	Stifel Financial Corp.(b)		11,693,873

				30,405,713

		Chemicals – 4.9%
	473,609	Chemtura Corp.(b)		8,146,075
	541,390	Ferro Corp.(b)		8,981,660
	230,016	Koppers Holdings, Inc.		9,821,683
	80,553	Minerals Technologies, Inc.		5,519,492
	244,931	Olin Corp.		5,613,818
	421,127	Omnova Solutions, Inc.(b)		3,314,269
	263,186	WR Grace & Co.(b)		10,077,392
	285,865	Zep, Inc.		4,976,910

				56,451,299

		Commercial Banks – 7.3%
	618,248	Cathay General Bancorp		10,541,128
	158,997	City National Corp.		9,070,779
	495,700	CVB Financial Corp.		4,614,967
	424,006	First Financial Bancorp		7,076,660
	500,904	First Horizon National Corp.		5,615,134
	147,328	IBERIABANK Corp.		8,858,833
	266,529	Pinnacle Financial Partners, Inc.(b)		4,408,390
	2,273,275	Popular, Inc.(b)		6,615,230
	183,036	Prosperity Bancshares, Inc.		7,828,450
	180,927	Signature Bank(b)		10,204,283
	244,462	Wintrust Financial Corp.		8,983,978

				83,817,832

		Commercial Services & Supplies – 3.2%
	195,496	KAR Auction Services, Inc.(b)		2,998,909
	221,440	McGrath Rentcorp		6,038,669

See accompanying notes to financial statements.

| 16

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)


	Common Stocks – continued

		Commercial Services & Supplies – continued
	567,866	Rollins, Inc.	$	11,527,680
	444,373	Standard Parking Corp.(b)		7,892,064
	113,083	Team, Inc.(b)		2,969,560
	187,550	Waste Connections, Inc.		5,399,564

				36,826,446

		Communications Equipment – 2.2%
	135,839	ADTRAN, Inc.		5,767,724
	1,387,561	Brocade Communications Systems, Inc.(b)		8,533,500
	395,609	Harmonic, Inc.(b)		3,710,812
	227,170	NETGEAR, Inc.(b)		7,369,395

				25,381,431

		Construction & Engineering – 0.7%
	223,305	MYR Group, Inc.(b)		5,341,455
	60,077	URS Corp.(b)		2,766,546

				8,108,001

		Consumer Finance – 1.8%
	200,778	Cash America International, Inc.		9,245,827
	545,544	Dollar Financial Corp.(b)		11,320,038

				20,565,865

		Containers & Packaging – 0.8%
	400,477	Temple-Inland, Inc.		9,371,162

		Distributors – 0.3%
	109,064	Core-Mark Holding Co., Inc.(b)		3,604,565

		Diversified Financial Services – 1.3%
	322,962	MarketAxess Holdings, Inc.		7,815,680
	311,941	PHH Corp.(b)		6,790,956

				14,606,636

		Diversified Telecommunication Services – 0.1%
	55,583	Neutral Tandem, Inc.(b)		819,849

		Electric Utilities – 2.0%
	178,898	ALLETE, Inc.		6,971,655
	131,699	ITC Holdings Corp.		9,205,760
	224,693	UIL Holdings Corp.		6,857,631

				23,035,046

		Electrical Equipment – 2.5%
	189,632	AZZ, Inc.		8,647,219
	178,305	II-VI, Inc.(b)		8,870,674
	92,247	LaBarge, Inc.(b)		1,632,772

See accompanying notes to financial statements.

17 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)


	Common Stocks – continued

		Electrical Equipment – continued
	152,523	Thomas & Betts Corp.(b)	$	9,070,543

				28,221,208

		Electronic Equipment, Instruments & Components – 5.1%
	440,208	Brightpoint, Inc.(b)		4,771,855
	231,931	Cognex Corp.		6,552,051
	359,931	GSI Group, Inc.(b)		3,707,289
	131,288	Littelfuse, Inc.		7,496,545
	537,821	Methode Electronics, Inc.		6,496,877
	152,792	Rofin-Sinar Technologies, Inc.(b)		6,035,284
	122,746	Rogers Corp.(b)		5,530,935
	278,194	ScanSource, Inc.(b)		10,568,590
	407,515	TTM Technologies, Inc.(b)		7,400,472

				58,559,898

		Energy Equipment & Services – 3.0%
	191,015	Dresser-Rand Group, Inc.(b)		10,242,224
	289,873	Helix Energy Solutions Group, Inc.(b)		4,985,816
	78,328	Lufkin Industries, Inc.		7,321,318
	133,752	Oceaneering International, Inc.(b)		11,964,116

				34,513,474

		Food & Staples Retailing – 0.5%
	410,633	Spartan Stores, Inc.		6,073,262

		Food Products – 3.5%
	167,748	Corn Products International, Inc.		8,692,701
	634,943	Darling International, Inc.(b)		9,759,074
	186,239	Fresh Del Monte Produce, Inc.		4,862,700
	168,066	J & J Snack Foods Corp.		7,910,867
	1,098,796	Pilgrim’s Pride Corp.(b)		8,471,717

				39,697,059

		Gas Utilities – 1.1%
	401,155	UGI Corp.		13,198,000

		Health Care Equipment & Supplies – 1.6%
	150,493	Alere, Inc.(b)		5,890,296
	112,062	Teleflex, Inc.		6,497,355
	124,562	West Pharmaceutical Services, Inc.		5,576,641

				17,964,292

		Health Care Providers & Services – 1.6%
	103,792	MEDNAX, Inc.(b)		6,913,585
	274,348	WellCare Health Plans, Inc.(b)		11,508,899

				18,422,484

See accompanying notes to financial statements.

| 18

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)


	Common Stocks – continued

		Hotels, Restaurants & Leisure – 2.0%
	149,999	Bob Evans Farms, Inc.	$	4,889,968
	205,689	California Pizza Kitchen, Inc.(b)		3,472,030
	473,802	Isle of Capri Casinos, Inc.(b)		4,501,119
	47,861	Six Flags Entertainment Corp.		3,445,992
	222,622	Wyndham Worldwide Corp.		7,081,606

				23,390,715

		Household Durables – 0.9%
	197,326	Jarden Corp.		7,018,886
	117,495	Leggett & Platt, Inc.		2,878,627

				9,897,513

		Industrial Conglomerates – 0.9%
	162,146	Raven Industries, Inc.		9,959,007

		Insurance – 3.9%
	446,540	Employers Holdings, Inc.		9,225,516
	58,490	Hanover Insurance Group, Inc. (The)		2,646,673
	299,373	HCC Insurance Holdings, Inc.		9,373,369
	496,165	Old Republic International Corp.		6,296,334
	123,616	ProAssurance Corp.(b)		7,833,546
	156,558	Reinsurance Group of America, Inc., Class A		9,828,711

				45,204,149

		Internet & Catalog Retail – 0.4%
	127,655	HSN, Inc.(b)		4,088,790

		Internet Software & Services – 0.6%
	193,225	IAC/InterActiveCorp(b)		5,968,720
	124,392	Perficient, Inc.(b)		1,493,948

				7,462,668

		IT Services – 1.3%
	39,664	Alliance Data Systems Corp.(b)		3,406,741
	234,247	Wright Express Corp.(b)		12,143,364

				15,550,105

		Life Sciences Tools & Services – 0.4%
	155,622	Pharmaceutical Product Development, Inc.		4,312,286

		Machinery – 5.5%
	334,348	Actuant Corp., Class A		9,696,092
	439,916	Albany International Corp., Class A		10,953,908
	402,453	Altra Holdings, Inc.(b)		9,505,940
	308,158	Commercial Vehicle Group, Inc.(b)		5,497,539
	283,740	John Bean Technologies Corp.		5,456,320
	200,062	Meritor, Inc.(b)		3,395,052
	42,038	Middleby Corp. (The)(b)		3,918,782

See accompanying notes to financial statements.

19 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)


	Common Stocks – continued

		Machinery – continued
	114,839	RBC Bearings, Inc.(b)	$	4,390,295
	564,738	Wabash National Corp.(b)		6,539,666
	49,107	Wabtec Corp.		3,330,928

				62,684,522

		Marine – 0.6%
	113,347	Kirby Corp.(b)		6,493,650

		Media – 3.4%
	163,892	Arbitron, Inc.		6,560,597
	168,118	Harte-Hanks, Inc.		2,000,604
	211,322	John Wiley & Sons, Inc., Class A		10,743,611
	176,394	Liberty Media-Starz, Series A(b)		13,688,174
	168,066	Live Nation Entertainment, Inc.(b)		1,680,660
	145,558	Madison Square Garden, Inc., Class A(b)		3,928,610

				38,602,256

		Metals & Mining – 2.2%
	102,828	Haynes International, Inc.		5,701,813
	560,885	Horsehead Holding Corp.(b)		9,563,089
	166,083	Reliance Steel & Aluminum Co.		9,596,276

				24,861,178

		Multiline Retail – 0.6%
	486,031	Fred’s, Inc. Class A		6,473,933

		Oil, Gas & Consumable Fuels – 3.7%
	172,522	Berry Petroleum Co., Class A		8,703,735
	271,798	Cloud Peak Energy, Inc.(b)		5,868,119
	140,906	Comstock Resources, Inc.(b)		4,359,632
	506,035	Energy Partners Ltd.(b)		9,108,630
	105,638	Petroleum Development Corp.(b)		5,071,680
	140,096	Rosetta Resources, Inc.(b)		6,660,164
	87,847	SemGroup Corp., Class A(b)		2,473,771

				42,245,731

		Paper & Forest Products – 0.5%
	89,855	Deltic Timber Corp.		6,005,908

		Pharmaceuticals – 0.3%
	296,279	Obagi Medical Products, Inc.(b)		3,744,967

		REITs – Apartments – 2.4%
	332,085	American Campus Communities, Inc.		10,958,805
	133,984	Mid-America Apartment Communities, Inc.		8,601,773
	309,208	UDR, Inc.		7,535,399

				27,095,977

See accompanying notes to financial statements.

| 20

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)


	Common Stocks – continued

		REITs – Diversified – 1.5%
	364,429	DuPont Fabros Technology, Inc.	$	8,837,403
	205,021	Potlatch Corp.		8,241,844

				17,079,247

		REITs – Healthcare – 0.7%
	382,192	Omega Healthcare Investors, Inc.		8,538,169

		REITs – Hotels – 0.6%
	1,093,626	Hersha Hospitality Trust		6,496,138

		REITs – Office Property – 0.8%
	463,665	BioMed Realty Trust, Inc.		8,818,908

		REITs – Single Tenant – 0.6%
	268,632	National Retail Properties, Inc.		7,019,354

		REITs – Storage – 1.1%
	132,469	Sovran Self Storage, Inc.		5,239,149
	707,732	U-Store-It Trust		7,445,341

				12,684,490

		Road & Rail – 1.7%
	123,490	Genesee & Wyoming, Inc., Class A(b)		7,187,118
	218,510	Old Dominion Freight Line, Inc.(b)		7,667,516
	306,604	Vitran Corp., Inc.(b)		4,320,050

				19,174,684

		Semiconductors & Semiconductor Equipment – 2.4%
	151,607	Cohu, Inc.		2,328,684
	167,103	Diodes, Inc.(b)		5,691,528
	575,368	PMC-Sierra, Inc.(b)		4,315,260
	558,088	Teradyne, Inc.(b)		9,939,547
	380,746	TriQuint Semiconductor, Inc.(b)		4,915,431

				27,190,450

		Software – 1.9%
	197,611	Monotype Imaging Holdings, Inc.(b)		2,865,360
	280,515	Progress Software Corp.(b)		8,160,181
	342,563	Radiant Systems, Inc.(b)		6,063,365
	240,438	SS&C Technologies Holdings, Inc.(b)		4,909,744

				21,998,650

		Specialty Retail – 2.7%
	169,583	Genesco, Inc.(b)		6,817,237
	1,077,563	Hot Topic, Inc.		6,142,109
	202,455	OfficeMax, Inc.(b)		2,619,768
	680,131	PEP Boys-Manny Moe & Jack		8,644,465
	515,951	Sally Beauty Holdings, Inc.(b)		7,228,473

				31,452,052

See accompanying notes to financial statements.

21 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)


	Common Stocks – continued

		Textiles, Apparel & Luxury Goods – 0.9%
	160,273	Kenneth Cole Productions, Inc., Class A(b)	$	2,078,741
	418,305	Movado Group, Inc.(b)		6,140,717
	41,046	Vera Bradley, Inc.(b)		1,732,552

				9,952,010

		Thrifts & Mortgage Finance – 1.5%
	216,184	BankUnited, Inc.		6,206,642
	503,218	Capitol Federal Financial, Inc.		5,671,267
	358,162	First Niagara Financial Group, Inc.		4,863,840

				16,741,749

		Trading Companies & Distributors – 1.0%
	288,240	H&E Equipment Services, Inc.(b)		5,623,562
	299,808	Rush Enterprises, Inc., Class A(b)		5,936,199

				11,559,761

		Water Utilities – 0.4%
	272,189	Middlesex Water Co.		4,951,118


		Total Common Stocks (Identified Cost $811,005,423)		1,109,838,104


	Principal Amount

	Short-Term Investments – 3.1%
$	35,067,817	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011 at 0.000% to be repurchased at $35,067,817 on 4/01/2011 collateralized by $36,085,000 Federal Home Loan Mortgage Corp., 4.125% due 5/12/2025 valued at $35,769,256 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $35,067,817)		35,067,817


		Total Investments – 99.9% (Identified Cost $846,073,240)(a)		1,144,905,921
		Other assets less liabilities—0.1%		1,447,067

		Net Assets – 100.0%	$	1,146,352,988


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
		At March 31, 2011, the net unrealized appreciation on investments based on a cost of $846,075,914 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	$	306,575,976
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(7,745,969	)

		Net unrealized appreciation	$	298,830,007

	(b)	Non-income producing security.

	REITs	Real Estate Investment Trusts

See accompanying notes to financial statements.

| 22

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Small Cap Value Fund – continued

Industry Summary at March 31, 2011 (Unaudited)


Commercial Banks	7.3	%
Machinery	5.5
Electronic Equipment, Instruments & Components	5.1
Chemicals	4.9
Insurance	3.9
Oil, Gas & Consumable Fuels	3.7
Food Products	3.5
Media	3.4
Commercial Services & Supplies	3.2
Energy Equipment & Services	3.0
Specialty Retail	2.7
Capital Markets	2.6
Electrical Equipment	2.5
Semiconductors & Semiconductor Equipment	2.4
REITs – Apartments	2.4
Communications Equipment	2.2
Metals & Mining	2.2
Hotels, Restaurants & Leisure	2.0
Electric Utilities	2.0
Other Investments, less than 2% each	32.3
Short-Term Investments	3.1

Total Investments	99.9
Other assets less liabilities	0.1

Net Assets	100.0	%

See accompanying notes to financial statements.

23 |

Statements of Assets And Liabilities

March 31, 2011 (Unaudited)


	Small Cap Growth Fund			Small Cap Value Fund
ASSETS
Investments at cost	$	190,866,092		$	846,073,240
Net unrealized appreciation		63,534,135			298,832,681

Investments at value		254,400,227			1,144,905,921
Receivable for Fund shares sold		2,759,371			1,189,404
Receivable for securities sold		2,493,718			3,596,864
Dividends receivable		11,807			1,023,887

TOTAL ASSETS		259,665,123			1,150,716,076

LIABILITIES
Payable for securities purchased		9,412,848			2,599,458
Payable for Fund shares redeemed		419,498			822,884
Management fees payable (Note 5)		165,921			625,040
Deferred Trustees’ fees (Note 5)		61,666			128,955
Administrative fees payable (Note 5)		9,006			44,333
Other accounts payable and accrued expenses		59,701			142,418

TOTAL LIABILITIES		10,128,640			4,363,088

NET ASSETS	$	249,536,483		$	1,146,352,988

NET ASSETS CONSIST OF:
Paid-in capital	$	256,543,687		$	925,364,035
Distributions in excess of net investment income/Accumulated net investment (loss)		(979,364	)		(570,274	)
Accumulated net realized loss on investments		(69,561,975	)		(77,273,454	)
Net unrealized appreciation on investments		63,534,135			298,832,681

NET ASSETS	$	249,536,483		$	1,146,352,988


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Institutional Class:
Net assets	$	120,790,368		$	582,154,282

Shares of beneficial interest		6,500,074			20,253,147

Net asset value, offering and redemption price per share	$	18.58		$	28.74

Retail Class:
Net assets	$	128,746,115		$	473,307,134

Shares of beneficial interest		7,179,209			16,613,259

Net asset value, offering and redemption price per share	$	17.93		$	28.49

Admin Class:
Net assets	$	—		$	90,891,572

Shares of beneficial interest		—			3,247,518

Net asset value, offering and redemption price per share	$	—		$	27.99

See accompanying notes to financial statements.

| 24

Statements of Operations

For the Six Months Ended March 31, 2011 (Unaudited)


	Small Cap Growth Fund			Small Cap Value Fund
INVESTMENT INCOME
Dividends	$	103,003		$	7,729,887

Expenses
Management fees (Note 5)		678,739			3,876,424
Service and distribution fees (Note 5)		123,948			744,175
Administrative fees (Note 5)		42,270			241,468
Trustees’ fees and expenses (Note 5)		13,834			24,363
Transfer agent fees and expenses (Notes 5 and 6)		95,109			631,451
Audit and tax services fees		18,507			21,221
Custodian fees and expenses		12,298			19,242
Legal fees		1,772			11,302
Registration fees		22,072			32,931
Shareholder reporting expenses		14,740			70,671
Miscellaneous expenses		5,390			17,116

Total expenses		1,028,679			5,690,364
Fee/expense recovery (Note 5)		20,355			—
Less waiver and/or expense reimbursement (Note 5)		(20,098	)		(294,480	)

Net expenses		1,028,936			5,395,884

Net investment income (loss)		(925,933	)		2,334,003


NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on:
Investments		17,120,406			71,963,853
Net change in unrealized appreciation (depreciation) on:
Investments		34,048,054			161,720,968

Net realized and unrealized gain on investments		51,168,460			233,684,821


NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	50,242,527		$	236,018,824

See accompanying notes to financial statements.

25 |

Statements of Changes in Net Assets


Small Cap Growth Fund	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
FROM OPERATIONS:
Net investment income (loss)	$	(925,933	)	$	(1,245,082	)
Net realized gain on investments		17,120,406			14,954,786
Net change in unrealized appreciation (depreciation) on investments		34,048,054			10,136,058

Net increase in net assets resulting from operations		50,242,527			23,845,762

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Institutional Class		—			—
Retail Class		—			—
Admin Class		—			—

Total distributions		—			—

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		71,448,603			(17,035,340	)

Net increase (decrease) in net assets		121,691,130			6,810,422
NET ASSETS
Beginning of the period		127,845,353			121,034,931

End of the period	$	249,536,483		$	127,845,353

UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME/ACCUMULATED NET INVESTMENT (LOSS)	$	(979,364	)	$	(53,431	)


Small Cap Value Fund	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
FROM OPERATIONS:
Net investment income (loss)	$	2,334,003		$	3,463,326
Net realized gain on investments		71,963,853			58,619,537
Net change in unrealized appreciation (depreciation) on investments		161,720,968			34,774,717

Net increase in net assets resulting from operations		236,018,824			96,857,580

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Institutional Class		(3,276,432	)		(1,798,397	)
Retail Class		(1,768,636	)		(522,660	)
Admin Class		(178,569	)		—

Total distributions		(5,223,637	)		(2,321,057	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		3,327,416			(150,208,179	)

Net increase (decrease) in net assets		234,122,603			(55,671,656	)
NET ASSETS
Beginning of the period		912,230,385			967,902,041

End of the period	$	1,146,352,988		$	912,230,385

UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME/ACCUMULATED NET INVESTMENT (LOSS)	$	(570,274	)	$	2,319,360

See accompanying notes to financial statements.

| 26

Financial Highlights

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment income (loss) (a)(b)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income (b)			Distributions from net realized capital gains			Total distributions
SMALL CAP GROWTH FUND

Institutional Class
3/31/2011(g)	$	14.03	$	(0.07	)	$	4.62		$	4.55		$	—		$	—		$	—
9/30/2010		11.58		(0.11	)(i)		2.56			2.45			—			—			—
9/30/2009		13.07		(0.07	)		(1.42	)		(1.49	)		—			—			—
9/30/2008		15.87		(0.07	)		(2.73	)		(2.80	)		—			—			—
9/30/2007		12.00		(0.06	)(j)		3.93			3.87			—			—			—
9/30/2006		11.08		(0.08	)		0.99			0.91			—			—			—

Retail Class
3/31/2011(g)		13.55		(0.09	)		4.47			4.38			—			—			—
9/30/2010		11.21		(0.13	)(i)		2.47			2.34			—			—			—
9/30/2009		12.69		(0.09	)		(1.39	)		(1.48	)		—			—			—
9/30/2008		15.45		(0.10	)		(2.66	)		(2.76	)		—			—			—
9/30/2007		11.71		(0.09	)(j)		3.83			3.74			—			—			—
9/30/2006		10.84		(0.11	)		0.97			0.86			—			—			—
SMALL CAP VALUE FUND

Institutional Class
3/31/2011(g)	$	22.93	$	0.08		$	5.89		$	5.97		$	(0.16	)	$	—		$	(0.16	)
9/30/2010		20.66		0.11			2.23			2.34			(0.07	)		—			(0.07	)
9/30/2009		22.01		0.09			(1.32	)		(1.23	)		(0.11	)		(0.01	)		(0.12	)
9/30/2008		28.77		0.11	(k)		(4.03	)		(3.92	)		(0.06	)		(2.78	)		(2.84	)
9/30/2007		27.69		0.12	(j)(l)		4.29			4.41			(0.17	)		(3.16	)		(3.33	)
9/30/2006		27.43		0.13			2.70			2.83			(0.15	)		(2.42	)		(2.57	)

Retail Class
3/31/2011(g)		22.71		0.04			5.85			5.89			(0.11	)		—			(0.11	)
9/30/2010		20.47		0.06			2.21			2.27			(0.03	)		—			(0.03	)
9/30/2009		21.79		0.04			(1.30	)		(1.26	)		(0.05	)		(0.01	)		(0.06	)
9/30/2008		28.52		0.05	(k)		(4.00	)		(3.95	)		—			(2.78	)		(2.78	)
9/30/2007		27.46		0.04	(j)(l)		4.28			4.32			(0.10	)		(3.16	)		(3.26	)
9/30/2006		27.23		0.06			2.67			2.73			(0.08	)		(2.42	)		(2.50	)

Admin Class
3/31/2011(g)		22.30		0.01			5.73			5.74			(0.05	)		—			(0.05	)
9/30/2010		20.11		0.00			2.19			2.19			—			—			—
9/30/2009		21.40		0.00			(1.28	)		(1.28	)		(0.00	)		(0.01	)		(0.01	)
9/30/2008		28.13		(0.01	)(k)		(3.94	)		(3.95	)		—			(2.78	)		(2.78	)
9/30/2007		27.14		(0.03	)(j)(l)		4.22			4.19			(0.04	)		(3.16	)		(3.20	)
9/30/2006		26.94		(0.01	)		2.65			2.64			(0.02	)		(2.42	)		(2.44	)

(a)

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

(b)

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

(c)

Effective June 1, 2009, redemption fees were eliminated.

(d)

Had certain expenses not been waived/reimbursed during the period, if applicable, total returns would have been lower. Periods less than one year, if applicable, are not annualized.

(e)

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

(f)

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

(g)

For the six months ended March 31, 2011 (Unaudited).

(h)

Includes fee/expense recovery of 0.05%.

See accompanying notes to financial statements.

27 |


									Ratios to Average Net Assets:
Redemption fees (b)(c)		Net asset value, end of the period		Total return (%) (d)			Net assets, end of the period (000’s)		Net expenses (%) (e)(f)			Gross expenses (%) (e)			Net investment income (loss) (%) (e)			Portfolio turnover rate (%)



$	—	$	18.58		32.43		$	120,790		1.00	(h)		1.00	(h)		(0.89	)		39
	—		14.03		21.16			52,501		1.00			1.06			(0.85	)(i)		69
	—		11.58		(11.40	)		45,557		1.00			1.01			(0.68	)		107
	0.00		13.07		(17.64	)		44,540		1.00			1.01			(0.47	)		92
	0.00		15.87		32.25			28,088		1.00			1.23			(0.47	)		83
	0.01		12.00		8.30			20,414		1.00			1.38			(0.69	)		100


	—		17.93		32.32			128,746		1.25			1.29			(1.14	)		39
	—		13.55		20.87			75,344		1.25			1.39			(1.10	)(i)		69
	—		11.21		(11.66	)		75,478		1.25			1.43			(0.93	)		107
	0.00		12.69		(17.86	)		79,897		1.25			1.42			(0.70	)		92
	0.00		15.45		31.94			20,924		1.25			1.50			(0.66	)		83
	0.01		11.71		8.03			2,981		1.25			1.92			(0.94	)		100



$	—	$	28.74		26.11		$	582,154		0.90			0.93			0.60			25
	—		22.93		11.39			454,853		0.90			0.94			0.50			52
	0.00		20.66		(5.42	)		506,324		0.90			0.94			0.52			55
	0.00		22.01		(15.02	)		553,268		0.89			0.89			0.47			61
	0.00		28.77		17.02			534,776		0.89			0.89			0.43			57
	0.00		27.69		11.17			442,714		0.89	(m)		0.89	(m)		0.47			62


	—		28.49		25.96			473,307		1.15			1.22			0.34			25
	—		22.71		11.10			383,934		1.15			1.24			0.26			52
	0.00		20.47		(5.66	)		387,383		1.15			1.31			0.26			55
	0.00		21.79		(15.21	)		464,525		1.15			1.27			0.21			61
	0.00		28.52		16.74			465,055		1.15			1.24			0.15			57
	0.00		27.46		10.87			291,690		1.15			1.20			0.21			62


	—		27.99		25.78			90,892		1.40			1.52			0.10			25
	—		22.30		10.89			73,443		1.40			1.56			0.02			52
	0.00		20.11		(5.93	)		74,195		1.40			1.77			0.02			55
	0.00		21.40		(15.44	)		77,855		1.40			1.68			(0.04	)		61
	0.00		28.13		16.41			76,783		1.40			1.56			(0.10	)		57
	0.00		27.14		10.59			64,367		1.40			1.46			(0.04	)		62

(i)

Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.12) and $(0.14) for Institutional Class and Retail Class, respectively, and the ratio of net investment loss to average net assets would have been (0.92)% and (1.17)% for Institutional Class and Retail Class, respectively.

(j)

Includes a non-recurring payment of $0.01 per share and $0.00 per share for Small Cap Growth Fund and Small Cap Value Fund, respectively.

(k)

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

(l)

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

(m)

Includes fee/expense recovery of 0.02%.

See accompanying notes to financial statements.

| 28

Notes to Financial Statements

March 31, 2011 (Unaudited)

1. Organization. Loomis Sayles Funds I and Loomis Sayles Funds II (the “Trusts” and each a “Trust”) are each organized as a Massachusetts business trust. Each Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Each Declaration of Trust permits the Board of Trustees to authorize the issuance of an unlimited number of shares of the 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”)

Each Fund offers Institutional Class Shares and Retail Class Shares. In addition, Small Cap Value Fund offers Admin Class Shares.

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

29 |

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

recent bid quotation on the applicable NASDAQ Market. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Investments in other open-end investment companies are valued at their net asset value each day. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser using consistently applied procedures under the general supervision of the Board of Trustees.

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

| 30

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

distribution information available. Investment income is recorded net of foreign taxes withheld when applicable. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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

d. Federal and Foreign Income Taxes. Each Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of March 31, 2011 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

31 |

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

e. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as expired capital loss carryforwards, distribution redesignations and net operating losses. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to securities lending collateral gain/loss adjustment, deferred Trustees’ fees and wash sales. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the year ended September 30, 2010 was as follows:


	2010 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Small Cap Growth Fund	$	—	$	—	$	—
Small Cap Value Fund		2,321,057		—		2,321,057

As of September 30, 2010, the capital loss carryforwards were as follows:


Capital loss carryforward:	Small Cap Growth Fund			Small Cap Value Fund
Expires September 30, 2011	$	(59,283,040	)	$	—
Expires September 30, 2017		(14,995,800	)		(88,137,321	)
Expires September 30, 2018		(11,885,718	)		(58,500,125	)

Total capital loss carryforward	$	(86,164,558	)	$	(146,637,446	)

| 32

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

fully used before capital loss carryforwards generated in taxable years prior to effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date, if any, may expire unused.

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

g. Securities Lending. The Funds have entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Funds, to lend securities to certain designated borrowers. The loans are collateralized with cash or securities in an amount equal to at least 105% or 102% of the market value (including accrued interest) of the loaned international or domestic securities, respectively, when the loan is initiated. Thereafter, the value of the collateral must remain at least 102% of the market value (including accrued interest) of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value (including accrued interest) of loaned securities for non-U.S. equities; and at least 100% of the market value (including accrued interest) of loaned securities for U.S. Government securities, sovereign debt issued by non-U.S. Governments and non-U.S. corporate debt. In the event that the market value of the collateral falls below the required percentages described above, the borrower will deliver additional collateral on the next business day. As with other extensions of credit, the Funds 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 six months ended March 31, 2011, 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

33 |

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

determining the value of each Fund’s assets or liabilities. These inputs are summarized in the three broad levels listed below:

•

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

•

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

•

Level 3—prices determined using significant unobservable inputs 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 following is a summary of the inputs used to value the Funds’ investments as of March 31, 2011, at value:

Small Cap Growth Fund

Asset Valuation Inputs


Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	238,295,871	$	—	$	—	$	238,295,871
Short-Term Investments		—		16,104,356		—		16,104,356

Total	$	238,295,871	$	16,104,356	$	—	$	254,400,227

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

Small Cap Value Fund

Asset Valuation Inputs


Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	1,109,838,104	$	—	$	—	$	1,109,838,104
Short-Term Investments		—		35,067,817		—		35,067,817

Total	$	1,109,838,104	$	35,067,817	$	—	$	1,144,905,921

(a)

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

4. Purchases and Sales of Securities. For the six months ended March 31, 2011, purchases and sales of securities (excluding short-term investments) were as follows:


Fund	Purchases		Sales
Small Cap Growth Fund	$	132,000,138	$	68,953,957
Small Cap Value Fund		247,614,342		273,055,808

| 34

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

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%

For the six months ended March 31, 2011, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:


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

For the six months ended March 31, 2011, the management fees for each Fund were as follows:


Fund	Management Fees		Percentage of Average Daily Net Assets
Small Cap Growth Fund	$	678,739	0.75%
Small Cap Value Fund		3,876,424	0.75%

For the six months ended March 31, 2011, class-specific expenses have been reimbursed as follows:


	Reimbursement¹
Fund	Institutional Class		Retail Class		Admin Class		Total
Small Cap Growth Fund	$	—	$	20,098	$	—	$	20,098
Small Cap Value Fund		83,694		160,951		49,835		294,480

¹Expense reimbursements are subject to possible recovery until September 30, 2012.

35 |

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

For the six months ended March 31, 2011, expense reimbursements related to the prior fiscal year were recovered as follows:


	Recovered Expenses
Fund	Institutional Class		Retail Class		Total
Small Cap Growth Fund	$	20,355	$	—	$	20,355

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

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

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

| 36

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

For the six months ended March 31, 2011, the Funds paid the following service and distribution fees:


	Service Fees		Distribution Fees
Fund	Admin Class		Retail Class		Admin Class
Small Cap Growth Fund	$	—	$	123,948	$	—
Small Cap Value Fund		103,146		537,883		103,146

c. Administrative Fees. Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion and 0.0350% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the six months ended March 31, 2011, each Fund paid the following administrative fees to Natixis Advisors:


Fund	Administrative Fees
Small Cap Growth Fund	$	42,270
Small Cap Value Fund		241,468

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

37 |

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

For the six months ended March 31, 2011, the Funds paid the following sub-transfer agent fees, which are reflected in transfer agent fees and expenses in the Statements of Operations:


	Sub-Transfer Agent Fees
Fund	Institutional Class		Retail Class		Admin Class
Small Cap Growth Fund	$	21,215	$	29,301	$	—
Small Cap Value Fund		209,839		274,357		74,719

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 Natixis Advisors, Natixis Distributors, Natixis US or their affiliates. The Chairperson of the Board receives a retainer fee at the annual rate of $250,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $80,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chairman receives an additional retainer fee at an annual rate of $15,000. Each Contract Review and Governance Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

f. Payments by Affiliates. For the six months ended March 31, 2011, Loomis Sayles reimbursed Small Cap Growth Fund $36 for losses incurred in connection with a trading error.

| 38

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

6. Class Specific Expenses. For the six months ended March 31, 2011, the Funds paid the following class-specific transfer agent fees and expenses (including sub-transfer agent fees):


	Transfer Agent Fees and Expenses
Fund	Institutional Class		Retail Class		Admin Class
Small Cap Growth Fund	$	22,608	$	72,501	$	—
Small Cap Value Fund		253,033		301,579		76,839

7. Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participates in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the six months ended March 31, 2011, 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 six months ended March 31, 2011, amounts rebated under these agreements were as follows:


Fund	Rebates
Small Cap Growth Fund	$	10,256
Small Cap Value Fund		67,389

9. Concentration of Ownership. At March 31, 2011, Loomis Sayles Funded Pension Plan and Trust (“Pension Plan”) and the Loomis Sayles Employees’ Profit Sharing Retirement Plan (“Retirement Plan”) held shares of beneficial interest in the Funds as follows:


Fund	Pension Plan		Retirement Plan
Small Cap Growth Fund		356,240		420,374
Small Cap Value Fund		394,254		730,654

39 |

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

From time to time, the Funds may have a concentration of several shareholders having a significant percentage of shares outstanding. Investment activities of these shareholders could have material impacts on the Funds. As of March 31, 2011, one shareholder account owned more than 5% of Small Cap Growth Fund’s total outstanding shares, representing 5.30% of the Fund’s net assets. Such ownership may be beneficially held by individuals or entities other than the owner of record.

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


	Small Cap Growth Fund
	Six Months Ended March 31, 2011						Year Ended September 30, 2010
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		3,332,975		$	55,477,806			942,038		$	12,157,438
Issued in connection with the reinvestment of distributions		—			—			—			—
Redeemed		(575,534	)		(9,643,306	)		(1,134,399	)		(14,055,822	)

Net change		2,757,441		$	45,834,500			(192,361	)	$	(1,898,384	)

Retail Class
Issued from the sale of shares		2,572,111		$	40,906,269			1,649,726		$	20,206,682
Issued in connection with the reinvestment of distributions		—			—			—			—
Redeemed		(951,624	)		(15,292,166	)		(2,822,162	)		(35,343,638	)

Net change		1,620,487		$	25,614,103			(1,172,436	)	$	(15,136,956	)

Increase (decrease) from capital share transactions		4,377,928		$	71,448,603			(1,364,797	)	$	(17,035,340	)

| 40

Notes to Financial Statements – continued

March 31, 2011 (Unaudited)

10. Capital Shares (continued)


	Small Cap Value Fund
	Six Months Ended March 31, 2011						Year Ended September 30, 2010
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		1,940,008		$	51,491,304			2,602,888		$	56,206,503
Issued in connection with the reinvestment of distributions		114,244			3,053,734			80,409			1,643,559
Redeemed		(1,635,183	)		(43,226,771	)		(7,355,313	)		(156,910,081	)

Net change		419,069		$	11,318,267			(4,672,016	)	$	(99,060,019	)

Retail Class
Issued from the sale of shares		1,288,707		$	33,912,104			1,882,548		$	40,646,183
Issued in connection with the reinvestment of distributions		66,486			1,762,558			25,691			521,021
Redeemed		(1,647,759	)		(42,551,105	)		(3,929,781	)		(84,156,249	)

Net change		(292,566	)	$	(6,876,443	)		(2,021,542	)	$	(42,989,045	)

Admin Class
Issued from the sale of shares		630,020		$	16,316,416			995,292		$	21,022,763
Issued in connection with the reinvestment of distributions		5,109			133,140			—			—
Redeemed		(681,741	)		(17,563,964	)		(1,389,922	)		(29,181,878	)

Net change		(46,612	)	$	(1,114,408	)		(394,630	)	$	(8,159,115	)

Increase (decrease) from capital share transactions		79,891		$	3,327,416			(7,088,188	)	$	(150,208,179	)

41 |

SEMIANNUAL REPORT

March 31, 2011

LOGO

Loomis Sayles Investment Grade Bond Fund

Loomis, Sayles & Company, L.P.

TABLE OF CONTENTS

Management Discussion page 1

Investment Results page 3

Portfolio of Investments page 9

Financial Statements page 28

Loomis Sayles Investment Grade Bond Fund

Management Discussion

Managers:

Daniel Fuss, CFA, CIC

Associate Managers:

Matthew J. Eagan, CFA

Kathleen Gaffney, CFA

Elaine Stokes

Loomis, Sayles & Company, L.P.

Objective:

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

Strategy:

Invests primarily in investment-grade, fixed-income securities, although it may invest up to 10% of its assets in below investment-grade fixed-income securities. The fund may invest any portion of its assets in securities of Canadian issuers and up to 20% in other foreign securities, including emerging markets.

Fund Inception:

December 31, 1996

Symbols:


Class A		LIGRX
Class B		LGBBX
Class C		LGBCX
Class Y		LSIIX
Admin Class		LIGAX
Class J		LIGJX

Market Conditions

Corporate bonds and credit-sensitive securities outperformed Treasuries and other high quality fixed-income investments during the six months ended March 31, 2011. The Federal Reserve Board’s (the Fed’s) accommodative policies combined with an expanding global economy, solid corporate earnings gains and rising consumer confidence to create a favorable backdrop for riskier sectors. However, the fixed-income market became more volatile toward the end of the first quarter of 2011 as a result of political unrest in the Middle East, a devastating earthquake in Japan and rising commodity prices, particularly for oil. Meanwhile, the U.S. dollar declined relative to major currencies over the period.

Performance Results

For the six months ended March 31, 2011, Class A shares of Loomis Sayles Investment Grade Bond Fund returned 2.44% at net asset value. The fund outperformed its benchmark, the Barclays Capital U.S. Government/Credit Bond Index, which returned -1.90%. It also outperformed the 0.12% average return of funds in its peer group, the Morningstar Intermediate-Term Bond category.

Explanation of Fund Performance

The fund’s outperformance was primarily due to strong security selection and sector positioning within non-U.S. dollar holdings, investment grade and high yield corporate credit and convertible bonds. A decision to underweight U.S. Treasuries also proved helpful in a market that rewarded risk.

The fund’s substantial out-of-benchmark exposure to outperforming, higher-yielding currencies was a major factor in its outperformance, as the U.S. dollar fell in relative value against many foreign currencies. Exposure to the Canadian dollar, Australian dollar, Norwegian krone and New Zealand dollar provided the greatest boost to returns. At the same time, security selection within the investment-grade corporate sector also helped, led by holdings in the finance, banking, capital goods and transportation industries. In addition, the fund gained from modest positions in the higher-yielding, below-investment-grade corporate market, which is not part of the benchmark. Within the high-yield sector, we concentrated on industrials, where we received particularly

1 |

good results in the consumer cyclicals, transportation and basic and capital goods industries. Exposure to commercial mortgage- and asset-backed securities also helped performance, as did positions in convertible bonds.

While the fund’s exposure to credit risk had a positive effect on returns, exposure to interest-rate risk had a somewhat negative effect, as yields moved higher during the six months. We maintained a slightly longer-than-benchmark duration—a measure of price sensitivity to changes in yields—and this positioning tended to hold back results when yields rose. The fund’s small position in municipal bonds also modestly detracted from relative performance.

Outlook

What You Should Know:

| 2

Loomis Sayles Investment Grade Bond Fund

Investment Results through March 31, 2011

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

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

March 31, 2001 through March 31, 2011

LOGO

3 |

Average Annual Total Returns — March 31, 2011⁴



	6 Months			1 Year			5 Years			10 Years

Class A (Inception 12/31/96)¹
Net Asset Value²		2.44	%		9.35	%		8.41	%		8.78	%
With Maximum Sales Charge³		-2.16			4.40			7.43			8.27

Class B (Inception 9/12/03)¹
Net Asset Value²		2.06			8.52			7.51			7.85
With CDSC⁵		-2.83			3.52			7.21			7.85

Class C (Inception 9/12/03)¹
Net Asset Value²		2.07			8.51			7.61			7.90
With CDSC⁵		1.09			7.51			7.61			7.90

Class Y (Inception 12/31/96)
Net Asset Value²		2.65			9.62			8.72			9.08

Admin Class (Inception 2/1/10)¹
Net Asset Value²		2.33			9.04			7.96			8.23

Class J (Inception 5/24/99)
Net Asset Value²		2.19			8.73			7.90			8.26
With Sales Charge⁵		-1.35			4.90			7.13			7.87

COMPARATIVE PERFORMANCE
Barclays Capital U.S. Government/Credit Bond Index		-1.90			5.26			5.83			5.53
Morningstar Intermediate-Term Bond Fund Avg.		0.12			6.16			5.50			5.15

All returns represent past performance and do not guarantee future results. Share price and return will vary and you may have a gain or loss when you sell your shares. All results include reinvestment of any dividends and capital gains. Current returns may be higher or lower than those shown. For performance current to the most recent month-end, visit ga.natixis.com. Class Y shares are not available for purchase by all investors. Class J shares are not offered for sale in the United States and are not eligible for sale to U.S. investors. The table and graph do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

NOTES TO CHARTS

See page 6 for a description of the index/average.

Prior to 9/15/03, performance of Class A shares is that of Retail Class shares, which were redesignated as Class A shares, restated to reflect the sales load of Class A shares. From 12/18/00 to 1/31/02, during which time Retail Class shares were not outstanding, performance is that of Institutional Class shares, restated to reflect the higher net expenses and sales loads of Class A shares. Prior to the inception of Class B and C shares (9/12/03), performance is that of Institutional Class shares, which were redesignated as Class Y shares, restated to reflect the higher net expenses and sales loads of Class B and C shares. Prior to the inception of Admin Class shares (2/1/10), performance is that of Class A shares, restated to reflect the higher net expenses of Admin Class shares.

2	At Net Asset Value (NAV) - does not reflect payment of sales charge at time of purchase.

3	With Maximum Sales Charge (MSC) - reflects maximum sales charge of 4.50% at time of purchase.

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

| 4


	% of Net Assets as of
CREDIT QUALITY	3/31/11
Aaa		23.2
Aa		6.4
A		24.4
Baa		37.1
Ba		4.7
B		2.0
Caa & Lower		0.1
Not Rated		0.0
Short-term and other		2.1

Credit quality at 3/31/11 reflects the highest credit rating assigned to individual holdings of the fund among Moody’s, S&P or Fitch; ratings are subject to change. The fund’s shares are not rated by any rating agency and no credit rating for the fund’s shares is implied. The Moody’s equivalent of the assigned rating is presented in the table.


	% of Net Assets as of
EFFECTIVE MATURITY	3/31/11
1 year or less		5.7
1-5 years		26.3
5-10 years		46.3
10+ years		21.7
Average Effective Maturity		9.6	years

Portfolio characteristics will vary.

Expense Ratios

as stated in the most recent prospectus


Share Class	Gross Expense Ratio¹			Net Expense Ratio²
A		0.81	%		0.81	%
B		1.56			1.56
C		1.56			1.56
Y		0.56			0.56
Admin		1.06			1.06
J		1.30			1.30

1	Before fee waivers and/or expense reimbursements.

2	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire on 1/31/12. Contracts are reevaluated on an annual basis.

5 |

ADDITIONAL INFORMATION

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

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

INDEX/AVERAGE DESCRIPTIONS:

Barclays Capital U.S. Government/Credit Bond Index is an unmanaged index that includes U.S. Treasuries, government-related issues, and investment grade U.S. corporate securities.

Morningstar Intermediate-Term Bond Fund Average is the average performance without sales charges of funds with similar investment objectives, as calculated by Morningstar, Inc.

PROXY VOTING INFORMATION

A description of the fund’s proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the fund’s website at ga.natixis.com; and on the Securities and Exchange Commission’s (SEC’s) website at www.sec.gov. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2010 is available from the fund’s website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

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

| 6

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. These costs are described in more detail in the fund’s prospectus. The examples below are intended to help you understand the ongoing costs of investing in the fund and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table for each class shows the actual amount of fund expenses you would have paid on a $1,000 investment in the fund from October 1, 2010 through March 31, 2011. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual fund returns and expenses. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example $8,600 account value divided by $1,000 =8.6) and multiply the result by the number in the Expenses Paid During the Period row as shown below for your class.

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

7 |


LOOMIS SAYLES INVESTMENT GRADE BOND FUND	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual		$1,000.00		$1,024.40		$4.04
Hypothetical (5% return before expenses)		$1,000.00		$1,020.94		$4.03
Class B
Actual		$1,000.00		$1,020.60		$7.81
Hypothetical (5% return before expenses)		$1,000.00		$1,017.20		$7.80
Class C
Actual		$1,000.00		$1,020.70		$7.81
Hypothetical (5% return before expenses)		$1,000.00		$1,017.20		$7.80
Class Y
Actual		$1,000.00		$1,026.50		$2.78
Hypothetical (5% return before expenses)		$1,000.00		$1,022.19		$2.77
Admin Class
Actual		$1,000.00		$1,023.30		$5.35
Hypothetical (5% return before expenses)		$1,000.00		$1,024.93		$5.35
Class J
Actual		$1,000.00		$1,021.90		$6.55
Hypothetical (5% return before expenses)		$1,000.00		$1,018.45		$6.54

Expenses are equal to the Fund's annualized expense ratio: 0.80%, 1.55%, 1.55%, 0.55%, 1.06% and 1.30% for Class A, B, C, Y, Admin Class and Class J, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

| 8

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund


Principal Amount (‡)		Description	Value (†)

	Bonds and Notes — 97.7% of Net Assets
	Non-Convertible Bonds — 92.9%
		ABS Car Loan — 1.3%
$	5,153,750	Avis Budget Rental Car Funding AESOP LLC, Series 2007-2A, Class A, 0.394%, 8/20/2013, 144A(b)	$	5,043,524
	831,000	Avis Budget Rental Car Funding AESOP LLC, Series 2010-2A, Class B, 5.740%, 8/20/2014, 144A		882,752
	4,590,000	Avis Budget Rental Car Funding AESOP LLC, Series 2010-3A, Class B, 6.740%, 5/20/2016, 144A		5,087,753
	2,889,250	Avis Budget Rental Car Funding AESOP LLC, Series 2010-5A, Class B, 5.110%, 3/20/2017, 144A		3,028,672
	18,620,000	Chesapeake Funding LLC, Series 2009-2A, Class B, 2.005%, 9/15/2021, 144A(b)		18,827,971
	16,736,000	Chesapeake Funding LLC, Series 2009-2A, Class C, 2.005%, 9/15/2021, 144A(b)		16,800,772
	31,643,159	Chrysler Financial Lease Trust, Series 2010-A, Class B, 3.460%, 9/16/2013, 144A		31,674,378
	19,574,000	Ford Auto Securitization Trust, Series 2010-R3A, Class A3, 2.714%, 9/15/2015, 144A, (CAD)		20,099,540
	5,481,000	Ford Auto Securitization Trust, Series 2010-R3A, Class D, 4.526%, 3/15/2017, 144A, (CAD)		5,636,469
	8,333,000	Merrill Auto Trust Securitization Asset, Series 2008-1, Class B, 6.750%, 4/15/2015		8,772,957

				115,854,788

		ABS Credit Card — 0.9%
	2,450,000	Capital One Multi-Asset Execution Trust, Series 2006-C2, Class C, 0.555%, 6/16/2014(b)		2,443,507
	28,592,000	Chase Issuance Trust, Series 2007-B1, Class B1, 0.505%, 4/15/2019(b)		27,521,284
	19,182,000	GE Capital Credit Card Master Note Trust, Series 2009-4, Class B, 5.390%, 11/15/2017, 144A		20,446,138
	9,787,000	MBNA Credit Card Master Note Trust, Series 2002-C1, Class C1, 6.800%, 7/15/2014		10,244,717
	14,465,000	MBNA Credit Card Master Note Trust, Series 2004-B1, Class B1, 4.450%, 8/15/2016		15,423,915
	2,324,000	World Financial Network Credit Card Master Trust, Series 2010-A, Class B, 6.750%, 4/15/2019		2,519,081

				78,598,642

		ABS Other — 2.0%
	6,279,977	CIT Equipment Collateral, Series 2008-VT1, Class A3, 6.590%, 12/22/2014		6,387,368
	1,664,000	Community Program Loan Trust, Series 1987-A, Class A5, 4.500%, 4/01/2029		1,573,545
	50,424,891	Marriott Vacation Club Owner Trust, Series 2009-2A, Class A, 4.809%, 7/20/2031, 144A		51,715,884
	12,079,480	Sierra Receivables Funding Co., Series 2009-3A, Class A1, 7.620%, 7/20/2026, 144A		12,355,989
	49,406,254	SVO VOI Mortgage Corp., Series 2009-BA, Class NT, 5.810%, 12/20/2028, 144A		51,007,495

See accompanying notes to financial statements.

9 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		ABS Other — continued
$	42,878,359	Trinity Rail Leasing LP, Series 2009-1A, Class A, 6.657%, 11/16/2039, 144A	$	45,542,533
	16,593,488	Trinity Rail Leasing LP, Series 2010-1A, Class A, 5.194%, 10/16/2040, 144A		16,591,754

				185,174,568

		Airlines — 3.2%
	8,210,380	American Airlines Pass Through Trust, Series 2009-1A, 10.375%, 1/02/2021		9,647,197
	454,703	Continental Airlines Pass Through Trust, Series 1997-1, Class A, 7.461%, 10/01/2016		459,818
	895,042	Continental Airlines Pass Through Trust, Series 1998-1, Class A, 6.648%, 3/15/2019		942,032
	942,784	Continental Airlines Pass Through Trust, Series 1999-1, Class A, 6.545%, 8/02/2020		999,351
	8,917,382	Continental Airlines Pass Through Trust, Series 2000-1, Class A-1, 8.048%, 5/01/2022		9,719,947
	1,752,198	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022		1,896,754
	3,123,921	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022		3,264,498
	57,832,905	Continental Airlines Pass Through Trust, Series 2007-1, Class A, 5.983%, 10/19/2023		59,278,727
	11,736,340	Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.903%, 4/19/2022		11,824,362
	27,580,858	Continental Airlines Pass Through Trust, Series 2009-1, 9.000%, 7/08/2016		31,304,274
	21,036,349	Continental Airlines Pass Through Trust, Series 2009-2, Class A, 7.250%, 5/10/2021		22,719,256
	4,208,000	Delta Air Lines Pass Through Trust, Series 2001-1, Class A-2, 7.111%, 3/18/2013		4,334,240
	1,979,511	Delta Air Lines Pass Through Trust, Series 2007-1, Class A, 6.821%, 2/10/2024		2,043,844
	15,304,937	Delta Air Lines Pass Through Trust, Series 2007-1, Class B, 8.021%, 2/10/2024		15,802,348
	39,677,913	Delta Air Lines Pass Through Trust, Series 2009-1, Class A, 7.750%, 6/17/2021		43,447,315
	4,412,481	Delta Air Lines Pass Through Trust, Series 2009-1, Series B, 9.750%, 12/17/2016		4,677,229
	22,198,030	Delta Air Lines Pass Through Trust, Series 2010-1, Class A, 6.200%, 7/02/2018		23,030,456
	7,903,103	Northwest Airlines, Inc., Series 2007-1, Class B, 8.028%, 11/01/2017		8,061,165
	7,942,000	Qantas Airways Ltd., 6.050%, 4/15/2016, 144A		8,458,389
	26,197,688	UAL Pass Through Trust, Series 2007-1, Class A, 6.636%, 1/02/2024		26,459,665
	7,606,389	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		8,709,316

				297,080,183

		Automotive — 1.2%
	40,992,000	Cummins, Inc., 5.650%, 3/01/2098		33,150,763
	5,274,000	Cummins, Inc., 6.750%, 2/15/2027		5,534,958
	1,948,000	Ford Motor Co., 6.375%, 2/01/2029		1,840,357
	125,000	Ford Motor Co., 6.500%, 8/01/2018		130,875

See accompanying notes to financial statements.

| 10

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Automotive — continued
$	255,000	Ford Motor Co., 6.625%, 2/15/2028	$	247,602
	5,074,000	Ford Motor Co., 6.625%, 10/01/2028		4,924,454
	8,544,000	Ford Motor Co., 7.450%, 7/16/2031		9,249,820
	240,000	Ford Motor Co., 7.500%, 8/01/2026		240,961
	40,126,000	Ford Motor Credit Co. LLC, 6.625%, 8/15/2017		42,824,514
	338,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		364,860
	5,319,000	Ford Motor Credit Co. LLC, 7.000%, 4/15/2015		5,757,424
	4,540,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		5,153,726

				109,420,314

		Banking — 10.5%
	22,547,000	AgriBank FCB, 9.125%, 7/15/2019, 144A		26,918,435
	7,200,000	American Express Centurion Bank, Series BKN1, 6.000%, 9/13/2017		8,020,915
	35,878,000	Associates Corp. of North America, 6.950%, 11/01/2018		40,096,535
	2,540,000	BAC Capital Trust VI, 5.625%, 3/08/2035		2,216,534
	3,590,000	Bank of America Corp., 5.420%, 3/15/2017		3,664,974
	9,805,000	Bank of America Corp., 6.000%, 9/01/2017		10,508,979
	17,249,000	Bank of America NA, 5.300%, 3/15/2017		17,708,962
	7,110,000,000	Barclays Bank PLC, EMTN, 3.680%, 8/20/2015, (KRW)		6,328,266
	2,173,000	Bear Stearns Cos., Inc. (The), 4.650%, 7/02/2018		2,194,467
	16,371,250,000	BNP Paribas SA, EMTN, Zero Coupon, 6/13/2011, 144A, (IDR)		1,855,878
	8,994,000	Capital One Financial Corp., 6.150%, 9/01/2016		9,848,979
	10,178,000	Citigroup, Inc., 5.000%, 9/15/2014		10,627,898
	14,680,000	Citigroup, Inc., 5.500%, 2/15/2017		15,250,010
	1,297,000	Citigroup, Inc., 5.850%, 12/11/2034		1,271,801
	2,740,000	Citigroup, Inc., 5.875%, 2/22/2033		2,575,929
	19,875,000	Citigroup, Inc., 6.125%, 5/15/2018		21,677,881
	8,705,000	Citigroup, Inc., 6.125%, 8/25/2036		8,301,044
	72,682,000	Citigroup, Inc., 6.375%, 8/12/2014		80,345,445
	2,398,000	Citigroup, Inc., EMTN, (fixed rate to 11/30/2012, variable rate thereafter), 3.625%, 11/30/2017, (EUR)		3,194,004
	63,845,000	Citigroup, Inc., MTN, 5.500%, 10/15/2014		68,863,217
	6,958,000	First Niagara Finance Group, Inc., 6.750%, 3/19/2020		7,589,981
	1,174,000	Goldman Sachs Group, Inc. (The), 6.450%, 5/01/2036		1,148,140
	96,910,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		97,746,236
	6,645,000	Goldman Sachs Group, Inc. (The), GMTN, 5.375%, 3/15/2020		6,746,901
	1,527,000	HBOS PLC, 6.000%, 11/01/2033, 144A		1,149,060
	700,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		696,500
	67,364,716,380	JPMorgan Chase & Co., Zero Coupon, 4/12/2012, 144A, (IDR)		7,269,123
	12,000,000,000	JPMorgan Chase & Co., EMTN, 7.070%, 3/22/2014, (IDR)		1,368,200
	337,000,000,000	JPMorgan Chase Bank NA, EMTN, Zero Coupon, 10/17/2011, 144A, (IDR)		37,566,010
	100,000	Keybank NA, 6.950%, 2/01/2028		108,208
	9,787,000	Lloyds TSB Bank PLC, EMTN, 4.570%, 10/13/2015, (CAD)		9,839,292

See accompanying notes to financial statements.

11 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Banking — continued
$	81,622,000	Lloyds TSB Bank PLC, MTN, 6.500%, 9/14/2020, 144A	$	80,243,078
	6,479,000	Merrill Lynch & Co., Inc., 5.700%, 5/02/2017		6,671,297
	69,291,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		65,716,762
	9,780,000	Merrill Lynch & Co., Inc., 10.710%, 3/08/2017, (BRL)		6,050,164
	3,132,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		4,086,340
	11,641,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		12,929,566
	40,126,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		36,891,443
	2,652,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.400%, 8/28/2017		2,890,887
	29,308,000	Morgan Stanley, 4.750%, 4/01/2014		30,539,405
	93,758,000	Morgan Stanley, 5.500%, 7/24/2020		93,692,088
	1,510,000	Morgan Stanley, EMTN, 5.450%, 1/09/2017		1,591,845
	24,100,000	Morgan Stanley, GMTN, 7.625%, 3/03/2016, (AUD)		25,111,821
	29,556,000	Morgan Stanley, Series F, GMTN, 5.625%, 9/23/2019		30,186,577
	5,187,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018		5,701,115
	9,699,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		10,418,064
	2,789,000	Morgan Stanley, Series G & H, GMTN, 5.125%, 11/30/2015, (GBP)		4,603,042
	2,875,000	National City Bank of Indiana, 4.250%, 7/01/2018		2,835,037
	8,638,000	National City Corp., 6.875%, 5/15/2019		9,861,115
	3,300,000	Standard Chartered Bank, 6.400%, 9/26/2017, 144A		3,564,531
	17,861,000	Standard Chartered PLC, 5.500%, 11/18/2014, 144A		19,276,520

				965,558,501

		Brokerage — 1.9%
	59,450,000	Cantor Fitzgerald LP, 6.375%, 6/26/2015, 144A		59,839,992
	44,990,000	Cantor Fitzgerald LP, 7.875%, 10/15/2019, 144A(c)		46,747,534
	11,813,000	Jefferies Group, Inc., 6.250%, 1/15/2036		10,918,992
	44,188,000	Jefferies Group, Inc., 8.500%, 7/15/2019		52,128,540

				169,635,058

		Building Materials — 1.5%
	6,640,000	Masco Corp., 4.800%, 6/15/2015		6,598,201
	10,942,000	Masco Corp., 5.850%, 3/15/2017		10,728,500
	6,616,000	Masco Corp., 6.125%, 10/03/2016		6,785,819
	4,808,000	Masco Corp., 6.500%, 8/15/2032		4,338,191
	29,341,000	Masco Corp., 7.125%, 3/15/2020		30,364,209
	4,923,000	Masco Corp., 7.750%, 8/01/2029		5,007,592
	24,394,000	Owens Corning, Inc., 6.500%, 12/01/2016		26,560,212
	41,379,000	Owens Corning, Inc., 7.000%, 12/01/2036		41,521,054
	1,037,000	USG Corp., 6.300%, 11/15/2016		974,780

				132,878,558

		Chemicals — 0.5%
	34,763,000	Chevron Phillips Chemical Co. LLC, 8.250%, 6/15/2019, 144A		41,503,928
	3,469,000	Cytec Industries, Inc., 6.000%, 10/01/2015		3,797,698
	2,349,000	Methanex Corp., Senior Note, 6.000%, 8/15/2015		2,354,051

				47,655,677

See accompanying notes to financial statements.

| 12

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Collateralized Mortgage Obligations — 0.0%
$	2,676,895	WaMu Mortgage Pass Through Certificates, Series 2007-OA6, Class 2A, 2.734%, 7/25/2047(b)	$	1,682,431
	95,361	Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR12, Class 1A1, 5.821%, 9/25/2036(b)		79,262

				1,761,693

		Commercial Mortgage-Backed Securities — 4.2%
	1,779,931	Bank of America-First Union NB Commercial Mortgage, Series 2001-3, Class A2, 5.464%, 4/11/2037		1,791,603
	7,927,364	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		8,304,609
	33,167,701	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/2049		34,861,927
	61,632,812	Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4, 5.905%, 6/15/2039(b)		65,265,962
	34,381,273	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 5.995%, 9/15/2039(b)		36,516,917
	5,001,090	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		5,196,902
	57,694,000	Crown Castle Towers LLC, 6.113%, 1/15/2040, 144A		62,531,815
	23,544,272	Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4, 5.736%, 12/10/2049		24,902,866
	1,324,259	GSR Mortgage Loan Trust, Series 2005-AR2, Class 2A1, 2.745%, 4/25/2035(b)		1,194,254
	19,789,051	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP6, Class A4, 5.475%, 4/15/2043		21,319,487
	8,739,675	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A4, 6.061%, 4/15/2045(b)		9,603,396
	59,341,803	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A4, 6.005%, 6/15/2049(b)		63,556,003
	21,524,263	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3, 5.420%, 1/15/2049		22,700,310
	3,131,798	LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class A4, 6.078%, 6/15/2038(b)		3,444,213
	1,311,441	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051		1,373,541
	9,786,870	Morgan Stanley Re-REMIC Trust, Series 2009-GG10, Class A4B, 6.002%, 8/12/2045, 144A(b)		10,024,043
	6,851,000	Vornado DP LLC, Series 2010-VNO, Class D, 6.356%, 9/13/2028, 144A		6,873,848
	3,621,142	Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.308%, 11/15/2048		3,879,249

				383,340,945

		Construction Machinery — 0.3%
	23,638,000	Case New Holland, Inc., 7.750%, 9/01/2013		25,735,873
	6,787,000	Toro Co., 6.625%, 5/01/2037(c)		6,096,592

				31,832,465

See accompanying notes to financial statements.

13 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Consumer Cyclical Services — 0.1%
$	13,049,000	Western Union Co. (The), 6.200%, 11/17/2036	$	12,769,477
	196,000	Western Union Co. (The), 6.200%, 6/21/2040		192,348

				12,961,825

		Consumer Products — 0.2%
	7,458,000	Hasbro, Inc., 6.600%, 7/15/2028		7,778,754
	11,754,000	Snap-on, Inc., 6.700%, 3/01/2019		13,285,323

				21,064,077

		Distributors — 0.9%
	9,787,000	EQT Corp., 8.125%, 6/01/2019		11,666,241
	60,038,000	Equitable Resources, Inc., 6.500%, 4/01/2018		65,279,978
	5,740,000	ONEOK, Inc., 6.000%, 6/15/2035		5,583,872

				82,530,091

		Diversified Manufacturing — 0.5%
	1,395,000	Ingersoll-Rand Global Holding Co. Ltd., 6.875%, 8/15/2018		1,619,592
	2,814,000	Textron Financial Corp., 5.400%, 4/28/2013		2,959,036
	1,181,000	Textron Financial Corp., Series E, MTN, 5.125%, 8/15/2014		1,212,399
	18,800,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		26,496,358
	11,040,000	Textron, Inc., EMTN, 6.625%, 4/07/2020, (GBP)		17,511,082

				49,798,467

		Electric — 3.1%
	38,071,000	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		40,096,758
	46,556,000	Ameren Illinois Co., 6.250%, 4/01/2018		50,945,579
	39,539,000	AmerenEnergy Generating Co., Series H, 7.000%, 4/15/2018		40,074,951
	489,000	Baltimore Gas & Electric Co., 5.200%, 6/15/2033		454,434
	11,638,864	Bruce Mansfield Unit, 6.850%, 6/01/2034(c)		12,213,248
	17,435,000	Cleveland Electric Illuminating Co. (The), 5.700%, 4/01/2017		18,540,466
	24,922,000	Cleveland Electric Illuminating Co. (The), 5.950%, 12/15/2036		23,312,138
	876,000	Commonwealth Edison Co., 4.700%, 4/15/2015		939,630
	9,000,000	EDP Finance BV, 4.900%, 10/01/2019, 144A		7,855,794
	979,000	Empresa Nacional de Electricidad SA (Endesa-Chile), 8.350%, 8/01/2013		1,097,102
	5,383,000	Endesa SA/Cayman Islands, 7.875%, 2/01/2027		6,011,444
	3,603,000	Exelon Corp., 4.900%, 6/15/2015		3,786,382
	1,864,000	ITC Holdings Corp., 5.875%, 9/30/2016, 144A		2,055,746
	2,770,000	ITC Holdings Corp., 6.375%, 9/30/2036, 144A		2,898,027
	8,569,598	Mackinaw Power LLC, 6.296%, 10/31/2023, 144A		9,044,011
	1,532,000	Ohio Edison Co., 6.875%, 7/15/2036		1,659,242
	30,250	Quezon Power Philippines LC, 8.860%, 6/15/2017		32,972
	50,026,000	Southwestern Electric Power Co., 6.450%, 1/15/2019		55,828,616
	1,075,000	White Pine Hydro LLC, 6.310%, 7/10/2017(c)		1,115,882
	1,600,000	White Pine Hydro LLC, 6.960%, 7/10/2037(c)		1,515,200

				279,477,622

		Entertainment — 0.1%
	494,000	Time Warner, Inc., 7.625%, 4/15/2031		569,863
	323,000	Time Warner, Inc., 7.700%, 5/01/2032		376,669
	3,616,000	Viacom, Inc., 6.125%, 10/05/2017		4,071,601

				5,018,133

See accompanying notes to financial statements.

| 14

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Financial Other — 0.4%
$	26,914,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A	$	33,807,079

		Food & Beverage — 0.1%
	2,450,000	Cargill, Inc., EMTN, 5.375%, 3/02/2037, (GBP)		3,822,409
	8,446,000	Corn Products International, Inc., 6.625%, 4/15/2037		8,828,089

				12,650,498

		Government Guaranteed — 0.1%
	10,276,000	Instituto de Credito Oficial, MTN, 6.125%, 2/27/2014, (AUD)		10,114,131

		Government Owned — No Guarantee — 1.6%
	3,720,000	Abu Dhabi National Energy Co., 6.500%, 10/27/2036, 144A		3,552,600
	36,975,000	Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A		40,718,719
	58,060,000	DP World Ltd., 6.850%, 7/02/2037, 144A		53,415,200
	26,030,000,000	Export-Import Bank of Korea, 6.600%, 11/04/2013, 144A, (IDR)		2,888,336
	27,800,000,000	Export-Import Bank of Korea, 8.300%, 3/15/2014, 144A, (IDR)		3,226,173
	22,478,000	Federal National Mortgage Association, 1.625%, 4/15/2013		22,821,509
	15,170,000	Korea Gas Corp., 6.000%, 7/15/2014, 144A		16,552,563
	1,000,000	Telekom Malaysia Berhad, 7.875%, 8/01/2025, 144A		1,267,229

				144,442,329

		Government Sponsored — 0.7%
	66,200,000	Federal Home Loan Bank, 1.875%, 6/21/2013		67,464,221

		Health Insurance — 0.1%
	2,744,000	CIGNA Corp., 6.150%, 11/15/2036		2,798,633
	1,569,000	CIGNA Corp., 7.875%, 5/15/2027		1,835,771
	1,174,000	CIGNA Corp., (Step to 8.080% on 1/15/2023), 8.300%, 1/15/2033(d)		1,406,567

				6,040,971

		Healthcare — 1.0%
	7,692,000	Boston Scientific Corp., 6.000%, 1/15/2020		8,059,808
	7,374,000	Covidien International Finance SA, 6.000%, 10/15/2017		8,404,059
	17,416,000	Express Scripts, Inc., 6.250%, 6/15/2014		19,348,323
	9,459,000	Express Scripts, Inc., 7.250%, 6/15/2019		11,296,051
	9,278,000	HCA, Inc., 5.750%, 3/15/2014		9,451,962
	1,908,000	HCA, Inc., 6.250%, 2/15/2013		1,979,550
	3,729,000	HCA, Inc., 6.375%, 1/15/2015		3,803,580
	3,929,000	HCA, Inc., 6.500%, 2/15/2016		3,997,758
	357,000	HCA, Inc., 6.750%, 7/15/2013		375,296
	2,936,000	HCA, Inc., 7.050%, 12/01/2027		2,613,040
	2,241,000	HCA, Inc., 7.190%, 11/15/2015		2,252,205
	2,109,000	HCA, Inc., 7.500%, 12/15/2023		1,993,005
	1,282,000	HCA, Inc., 7.500%, 11/06/2033		1,176,235
	3,807,000	HCA, Inc., 7.690%, 6/15/2025		3,626,168
	4,164,000	HCA, Inc., 8.360%, 4/15/2024		4,164,000
	1,199,000	HCA, Inc., MTN, 7.580%, 9/15/2025		1,130,058
	3,068,000	HCA, Inc., MTN, 7.750%, 7/15/2036		2,868,580
	2,256,000	Owens & Minor, Inc., 6.350%, 4/15/2016(c)		2,314,642

				88,854,320

See accompanying notes to financial statements.

15 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Home Construction — 0.2%
$	2,006,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015	$	2,066,180
	2,546,000	Pulte Group, Inc., 5.200%, 2/15/2015		2,526,905
	9,200,000	Pulte Group, Inc., 6.000%, 2/15/2035		7,199,000
	3,567,000	Pulte Group, Inc., 6.375%, 5/15/2033		2,898,187
	1,711,000	Toll Brothers Finance Corp., 5.150%, 5/15/2015		1,746,442

				16,436,714

		Independent Energy — 0.3%
	11,930,000	Anadarko Petroleum Corp., 6.375%, 9/15/2017		13,131,292
	15,346,000	Anadarko Petroleum Corp., 6.450%, 9/15/2036		15,326,188
	1,890,000	Chesapeake Energy Corp., 6.250%, 1/15/2017, (EUR)		2,782,299

				31,239,779

		Industrial Other — 0.1%
	4,893,000	Worthington Industries, Inc., 6.500%, 4/15/2020		5,233,822

		Integrated Energy — 0.0%
	939,695	PF Export Receivables Master Trust, Series A, 6.436%, 6/01/2015, 144A		1,000,776

		Life Insurance — 0.9%
	4,400,000	American International Group, Inc., EMTN, 5.000%, 4/26/2023, (GBP)		6,065,208
	6,910,000	American International Group, Inc., Series G, MTN, 5.850%, 1/16/2018		7,197,705
	2,036,000	American International Group, Inc., Series MP, GMTN, 5.450%, 5/18/2017		2,090,033
	9,777,000	ASIF III Jersey Ltd., Series 2003-G, EMTN, 4.750%, 9/11/2013, (EUR)		14,142,417
	10,971,000	MetLife, Inc., 6.400%, 12/15/2066		10,566,170
	9,063,000	Mutual of Omaha Insurance Co., 6.800%, 6/15/2036, 144A		9,171,348
	6,440,000	NLV Financial Corp., 7.500%, 8/15/2033, 144A		6,191,493
	2,872,000	Penn Mutual Life Insurance Co. (The), 6.650%, 6/15/2034, 144A		2,783,117
	14,489,000	Penn Mutual Life Insurance Co. (The), 7.625%, 6/15/2040, 144A		15,664,101
	4,732,000	Unum Group, 7.125%, 9/30/2016		5,334,545

				79,206,137

		Local Authorities — 1.9%
	215,000	Alberta Municipal Funding Corp., 5.700%, 9/01/2011, (CAD)		225,824
	7,448,000	Manitoba (Province of), GMTN, 6.375%, 9/01/2015, (NZD)		6,016,411
	28,543,000	New South Wales Treasury Corp., 6.000%, 5/01/2012, (AUD)		29,847,316
	30,476,000	New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012, (AUD)		31,863,982
	17,930,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		18,452,364
	20,195	Province of Alberta, 5.930%, 9/16/2016, (CAD)		23,131
	489,000	Province of Nova Scotia, 6.600%, 6/01/2027, (CAD)		628,225
	29,791,000	Province of Quebec, Canada, Series QC, 6.750%, 11/09/2015, (NZD)		24,360,107
	31,142,000	Queensland Treasury Corp., 7.125%, 9/18/2017, 144A, (NZD)		25,748,840
	18,913,000	Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011, (AUD)		19,604,716
	19,163,000	Queensland Treasury Corp., Series 14, 5.750%, 11/21/2014, (AUD)		19,964,948

				176,735,864

		Lodging — 1.1%
	52,516,000	Choice Hotels International, Inc., 5.700%, 8/28/2020		51,949,668
	4,522,000	Wyndham Worldwide Corp., 5.750%, 2/01/2018		4,685,479
	13,286,000	Wyndham Worldwide Corp., 6.000%, 12/01/2016		14,078,377
	23,518,000	Wyndham Worldwide Corp., 7.375%, 3/01/2020		25,943,882

				96,657,406

See accompanying notes to financial statements.

| 16

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Media Cable — 1.5%
$	24,518,000	Comcast Corp., 6.950%, 8/15/2037	$	26,692,354
	17,832,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		18,832,210
	4,101,000	Time Warner Cable, Inc., 5.850%, 5/01/2017		4,485,260
	78,178,000	Time Warner Cable, Inc., 6.750%, 7/01/2018		88,811,850

				138,821,674

		Media Non-Cable — 0.1%
	7,536,000	News America, Inc., 6.150%, 3/01/2037		7,467,226
	4,482,000	News America, Inc., 8.150%, 10/17/2036		5,433,112

				12,900,338

		Metals & Mining — 1.4%
	15,060,000	Alcoa, Inc., 5.870%, 2/23/2022		15,411,606
	5,505,000	Alcoa, Inc., 5.950%, 2/01/2037		5,193,428
	54,838,000	Alcoa, Inc., 6.150%, 8/15/2020		57,948,576
	5,804,000	Alcoa, Inc., 6.750%, 1/15/2028		6,071,390
	3,181,000	Rio Tinto Alcan, Inc., 5.750%, 6/01/2035		3,176,601
	1,943,000	United States Steel Corp., 6.050%, 6/01/2017		2,003,719
	4,612,000	United States Steel Corp., 6.650%, 6/01/2037		4,243,040
	31,210,000	United States Steel Corp., 7.000%, 2/01/2018		32,419,387
	3,655,000	Vale Overseas Ltd., 6.875%, 11/21/2036		3,892,067

				130,359,814

		Mortgage Related — 0.0%
	109,424	FHLMC, 5.000%, 12/01/2031		115,315
	17,436	FNMA, 6.000%, 7/01/2029		19,198

				134,513

		Non-Captive Consumer — 2.0%
	62,425(††)	SLM Corp., 6.000%, 12/15/2043		1,312,017
	6,342,000	SLM Corp., MTN, 5.050%, 11/14/2014		6,401,792
	347,000	SLM Corp., MTN, 5.125%, 8/27/2012		358,117
	641,000	SLM Corp., MTN, 8.000%, 3/25/2020		698,690
	4,796,000	SLM Corp., Series A, MTN, 0.603%, 1/27/2014(b)		4,548,651
	9,224,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		9,547,670
	6,547,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		6,591,716
	1,957,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		1,839,040
	6,141,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		6,387,573
	5,368,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		5,566,552
	19,496,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		16,668,066
	30,667,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		34,347,040
	4,893,000	Springleaf Finance Corp., Series I, MTN, 5.400%, 12/01/2015		4,464,863
	87,676,000	Springleaf Finance Corp., Series J, MTN, 6.900%, 12/15/2017		80,113,945

				178,845,732

		Non-Captive Diversified — 4.0%
	1,316,000	Ally Financial, Inc., 6.000%, 12/15/2011		1,348,880
	1,282,000	Ally Financial, Inc., 6.625%, 5/15/2012		1,321,186
	1,634,000	Ally Financial, Inc., 6.750%, 12/01/2014		1,716,043
	1,468,000	Ally Financial, Inc., 6.875%, 9/15/2011		1,495,631

See accompanying notes to financial statements.

17 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Non-Captive Diversified — continued
$	391,000	Ally Financial, Inc., 6.875%, 8/28/2012	$	410,697
	1,184,000	Ally Financial, Inc., 7.000%, 2/01/2012		1,221,435
	3,075,000	Ally Financial, Inc., 7.500%, 12/31/2013		3,309,469
	5,543,000	Ally Financial, Inc., 8.000%, 12/31/2018		5,951,796
	2,285,000	Ally Financial, Inc., 8.000%, 11/01/2031		2,537,312
	4,937,000	Ally Financial, Inc., EMTN, 5.375%, 6/06/2011, (EUR)		7,017,704
	42,755,000	Aviation Capital Group, 6.750%, 4/06/2021, 144A		42,861,887
	2,414,993	CIT Group, Inc., 7.000%, 5/01/2013		2,460,274
	6,756,572	CIT Group, Inc., 7.000%, 5/01/2014		6,883,258
	6,756,571	CIT Group, Inc., 7.000%, 5/01/2015		6,815,691
	10,302,540	CIT Group, Inc., 7.000%, 5/01/2016		10,315,418
	15,765,347	CIT Group, Inc., 7.000%, 5/01/2017		15,785,054
	35,688,000	GATX Corp., 4.750%, 10/01/2012		37,306,772
	7,355,000	General Electric Capital Australia Funding Pty Ltd., EMTN, 8.000%, 2/13/2012, (AUD)		7,761,142
	7,570,000	General Electric Capital Australia Funding Pty Ltd., MTN, 6.000%, 5/15/2013, (AUD)		7,802,254
	3,100,000	General Electric Capital Australia Funding Pty Ltd., MTN, 6.000%, 4/15/2015, (AUD)		3,149,793
	1,874,000	General Electric Capital Australia Funding Pty Ltd., MTN, 6.000%, 3/15/2019, (AUD)		1,805,190
	969,000	General Electric Capital Corp., 5.625%, 5/01/2018		1,047,604
	4,673,000	General Electric Capital Corp., MTN, 5.875%, 1/14/2038		4,613,531
	14,225,000	General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)		11,280,409
	6,000,000	General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012, (SGD)		4,836,005
	13,100,000	General Electric Capital Corp., Series A, GMTN, 3.485%, 3/08/2012, (SGD)		10,560,606
	36,850,000	General Electric Capital Corp., Series A, GMTN, 7.625%, 12/10/2014, (NZD)		30,363,877
	10,247,000	General Electric Capital Corp., Series A, MTN, 0.603%, 5/13/2024(b)		8,970,972
	16,696,000	General Electric Capital Corp., Series A, MTN, 4.875%, 3/04/2015		18,001,811
	26,931,000	General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		21,388,020
	2,236,000	International Lease Finance Corp., 5.000%, 9/15/2012		2,270,658
	16,437,000	International Lease Finance Corp., 6.375%, 3/25/2013		17,012,295
	60,419,000	International Lease Finance Corp., 7.125%, 9/01/2018, 144A		64,920,215
	548,000	International Lease Finance Corp., 8.875%, 9/15/2015, 144A		602,800
	641,000	International Lease Finance Corp., Series R, MTN, 5.550%, 9/05/2012		653,820
	1,473,000	International Lease Finance Corp., Series R, MTN, 5.625%, 9/20/2013		1,496,936
	1,625,000	International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		1,633,125

				368,929,570

		Oil Field Services — 0.8%
	5,965,000	Nabors Industries, Inc., 6.150%, 2/15/2018		6,530,768
	22,583,000	Nabors Industries, Inc., 9.250%, 1/15/2019		28,467,023
	23,338,000	Rowan Cos., Inc., 7.875%, 8/01/2019		27,682,976
	587,000	Transocean Ltd., 7.375%, 4/15/2018		670,467
	5,779,000	Weatherford International Ltd., 6.500%, 8/01/2036		5,778,312
	1,644,000	Weatherford International Ltd., 6.800%, 6/15/2037		1,709,698
	5,290,000	Weatherford International Ltd., 7.000%, 3/15/2038		5,603,046

				76,442,290

See accompanying notes to financial statements.

| 18

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Paper — 1.0%
$	4,365,000	Celulosa Arauco y Constitucion SA, 7.250%, 7/29/2019	$	5,031,295
	563,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		588,335
	2,408,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		2,540,440
	279,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		306,551
	1,311,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		1,497,818
	1,336,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		1,613,220
	6,161,000	International Paper Co., 5.250%, 4/01/2016		6,568,717
	7,611,000	International Paper Co., 8.700%, 6/15/2038		9,756,914
	5,270,000	Mead Corp. (The), 7.550%, 3/01/2047		5,161,016
	5,764,000	Westvaco Corp., 8.200%, 1/15/2030		6,151,491
	24,007,000	Weyerhaeuser Co., 6.875%, 12/15/2033		24,107,829
	7,374,000	Weyerhaeuser Co., 7.375%, 10/01/2019		8,331,086
	20,254,000	Weyerhaeuser Co., 7.375%, 3/15/2032		21,357,580

				93,012,292

		Pharmaceuticals — 0.7%
	2,205,000	Elan Finance PLC/Elan Finance Corp., 8.875%, 12/01/2013		2,279,419
	56,052,000	Roche Holdings, Inc., 5.000%, 3/01/2014, 144A		61,104,695
	489,000	Schering-Plough Corp., 5.300%, 12/01/2013		538,737

				63,922,851

		Pipelines — 4.1%
	5,236,000	CenterPoint Energy Resources Corp., 6.250%, 2/01/2037		5,324,572
	1,967,000	DCP Midstream LP, 6.450%, 11/03/2036, 144A		1,999,593
	2,417,000	El Paso Corp., 6.950%, 6/01/2028		2,448,677
	528,000	Energy Transfer Partners LP, 6.125%, 2/15/2017		589,476
	1,571,000	Energy Transfer Partners LP, 6.625%, 10/15/2036		1,641,511
	9,253,000	Enterprise Products Operating LLP, 6.300%, 9/15/2017		10,432,323
	3,328,000	Florida Gas Transmission Co., 7.900%, 5/15/2019, 144A		4,014,160
	80,840,000	Kinder Morgan Energy Partners LP, 5.950%, 2/15/2018		89,014,218
	303,000	Kinder Morgan Finance Co., 5.700%, 1/05/2016		317,771
	30,396,888	Maritimes & Northeast Pipeline LLC, 7.500%, 5/31/2014, 144A(c)		32,878,490
	8,886,000	NGPL PipeCo LLC, 6.514%, 12/15/2012, 144A		9,519,030
	30,760,000	NGPL PipeCo LLC, 7.119%, 12/15/2017, 144A		34,369,163
	13,790,000	NiSource Finance Corp., 6.125%, 3/01/2022		15,005,382
	24,110,000	NiSource Finance Corp., 6.400%, 3/15/2018		26,973,448
	21,614,000	NiSource Finance Corp., 6.800%, 1/15/2019		24,726,956
	9,899,000	Panhandle Eastern Pipeline Co., 6.200%, 11/01/2017		10,976,902
	47,594,000	Panhandle Eastern Pipeline Co., 7.000%, 6/15/2018		53,117,665
	1,404,000	Panhandle Eastern Pipeline Co., 8.125%, 6/01/2019		1,648,080
	2,085,000	Plains All American Pipeline LP, 6.125%, 1/15/2017		2,309,083
	15,683,000	Plains All American Pipeline LP, 6.500%, 5/01/2018		17,629,605
	4,497,000	Plains All American Pipeline LP, 6.650%, 1/15/2037		4,755,195
	4,125,000	Southern Natural Gas Co., 5.900%, 4/01/2017, 144A		4,589,521
	19,574,000	Texas Eastern Transmission LP, 6.000%, 9/15/2017, 144A		21,855,741

				376,136,562

See accompanying notes to financial statements.

19 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Property & Casualty Insurance — 0.7%
$	3,083,000	Hanover Insurance Group, Inc. (The), 7.500%, 3/01/2020	$	3,277,140
	9,038,000	Liberty Mutual Group, Inc., 6.500%, 3/15/2035, 144A		8,496,325
	30,349,000	Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033		28,569,152
	944,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A		519,200
	7,609,000	White Mountains Re Group Ltd., 6.375%, 3/20/2017, 144A		7,786,571
	13,521,000	Willis North America, Inc., 7.000%, 9/29/2019		14,642,824
	2,212,000	XL Group PLC, 6.250%, 5/15/2027		2,196,304
	1,463,000	XL Group PLC, 6.375%, 11/15/2024		1,521,722

				67,009,238

		Property Trust — 0.5%
	36,192,000	WEA Finance LLC/WT Finance Australia Property Ltd., 6.750%, 9/02/2019, 144A		41,527,352

		Railroads — 0.1%
	9,787,000	Canadian Pacific Railway Co., 7.250%, 5/15/2019		11,595,550
	238,000	Missouri Pacific Railroad Co., 4.750%, 1/01/2030(c)		207,655
	1,701,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(c)		1,160,932
	191,000	Missouri Pacific Railroad Co., Series A, 4.750%, 1/01/2020(c)		177,630

				13,141,767

		Real Estate Operations/Development — 0.1%
	1,128,000	Colonial Realty LP, 4.800%, 4/01/2011		1,128,000
	10,276,000	First Industrial LP, 5.950%, 5/15/2017		9,687,062

				10,815,062

		Refining — 0.0%
	3,660,000	Valero Energy Corp., 6.625%, 6/15/2037		3,689,112

		REITs — Apartments — 0.4%
	12,243,000	Camden Property Trust, 5.000%, 6/15/2015		13,092,982
	16,491,000	Camden Property Trust, 5.700%, 5/15/2017		18,051,923
	988,000	ERP Operating LP, 5.125%, 3/15/2016		1,060,972
	1,762,000	ERP Operating LP, 5.375%, 8/01/2016		1,916,117
	2,368,000	ERP Operating LP, 5.750%, 6/15/2017		2,607,144

				36,729,138

		REITs — Diversified — 0.3%
	4,140,000	Duke Realty LP, 5.950%, 2/15/2017		4,465,888
	19,574,000	Duke Realty LP, 6.500%, 1/15/2018		21,566,516

				26,032,404

		REITs — Office Property — 0.4%
	20,817,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		22,154,846
	11,306,000	Highwoods Properties, Inc., 7.500%, 4/15/2018		12,923,222

				35,078,068

		REITs — Regional Malls — 0.3%
	2,427,000	Simon Property Group LP, 5.250%, 12/01/2016		2,638,894
	12,209,000	Simon Property Group LP, 5.750%, 12/01/2015		13,578,630

See accompanying notes to financial statements.

| 20

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		REITs — Regional Malls — continued
$	1,889,000	Simon Property Group LP, 5.875%, 3/01/2017	$	2,095,740
	4,066,000	Simon Property Group LP, 6.100%, 5/01/2016		4,594,844

				22,908,108

		REITs — Shopping Centers — 0.1%
	4,893,000	Equity One, Inc., 6.000%, 9/15/2017		5,033,116
	1,918,000	Federal Realty Investment Trust, 5.650%, 6/01/2016		2,087,864

				7,120,980

		REITs — Single Tenant — 0.4%
	5,862,000	Realty Income Corp., 5.750%, 1/15/2021		6,170,588
	25,529,000	Realty Income Corp., 6.750%, 8/15/2019		29,130,044

				35,300,632

		REITs — Warehouse/Industrials — 0.7%
	3,873,000	ProLogis, 5.625%, 11/15/2015		4,110,271
	11,179,000	ProLogis, 5.625%, 11/15/2016		11,710,014
	10,889,000	ProLogis, 5.750%, 4/01/2016		11,695,875
	9,698,000	ProLogis, 6.625%, 5/15/2018		10,504,583
	18,869,000	ProLogis, 7.375%, 10/30/2019		21,370,029

				59,390,772

		Restaurants — 0.1%
	10,320,000	Darden Restaurants, Inc., 6.000%, 8/15/2035		9,985,900

		Retailers — 0.6%
	7,996,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		8,055,970
	8,139,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		7,335,274
	12,000	J.C. Penney Corp., Inc., 7.125%, 11/15/2023		12,420
	8,656,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		7,747,120
	13,425,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		13,425,000
	10,467,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		10,126,822
	2,691,000	Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		2,724,638
	8,064,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		7,700,273

				57,127,517

		Sovereigns — 1.4%
	429,200(†††)	Mexican Fixed Rate Bonds, Series M-10, 7.250%, 12/15/2016, (MXN)		3,648,477
	4,111,400(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		35,087,643
	371,900(†††)	Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012, (MXN)		3,305,826
	24,178,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		14,735,007
	6,035,000	Republic of Brazil, 12.500%, 1/05/2022, (BRL)		4,287,876
	52,555,000	Republic of Croatia, 6.750%, 11/05/2019, 144A		55,051,362
	955,389,437	Republic of Iceland, 4.250%, 8/24/2012, (ISK)		5,011,488
	776,294,507	Republic of Iceland, 7.250%, 5/17/2013, (ISK)		4,356,098
	987,872,928	Republic of Iceland, 8.000%, 7/22/2011, (ISK)		5,179,884

				130,663,661

		Supermarkets — 0.2%
	4,130,000	American Stores Co., Series B, MTN, 7.100%, 3/20/2028		3,118,150
	3,269,000	Kroger Co. (The), 6.400%, 8/15/2017		3,761,190

See accompanying notes to financial statements.

21 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Supermarkets — continued
$	1,860,000	New Albertson’s, Inc., 7.450%, 8/01/2029	$	1,469,400
	979,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		709,775
	10,863,000	Safeway, Inc., 6.350%, 8/15/2017		12,143,444

				21,201,959

		Supranational — 1.6%
	11,745,000	European Bank for Reconstruction & Development, GMTN, 9.250%, 9/10/2012, (BRL)		7,190,805
	192,350,850,000	European Investment Bank, EMTN, Zero Coupon, 4/24/2013, 144A, (IDR)		19,282,579
	28,082,000	European Investment Bank, EMTN, 7.000%, 1/18/2012, (NZD)		22,067,027
	329,000,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 5/20/2013, (IDR)		32,208,326
	410,030,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 9/23/2013, (IDR)		38,891,045
	12,982,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		10,361,077
	15,070,000	International Bank for Reconstruction & Development, 1.430%, 3/05/2014, (SGD)		12,004,579

				142,005,438

		Technology — 3.9%
	8,705,000	Agilent Technologies, Inc., 6.500%, 11/01/2017		9,711,315
	4,600,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		3,956,000
	1,028,000	Arrow Electronics, Inc., 6.875%, 6/01/2018		1,120,710
	3,059,000	Avnet, Inc., 5.875%, 3/15/2014		3,288,544
	6,097,000	Avnet, Inc., 6.000%, 9/01/2015		6,549,154
	1,507,000	Avnet, Inc., 6.625%, 9/15/2016		1,649,404
	12,444,000	BMC Software, Inc., 7.250%, 6/01/2018(c)		14,157,638
	13,457,000	Corning, Inc., 6.750%, 9/15/2013		14,904,650
	1,448,000	Corning, Inc., 6.850%, 3/01/2029		1,629,743
	57,571,000	Corning, Inc., 7.000%, 5/15/2024		65,907,741
	7,487,000	Corning, Inc., 7.250%, 8/15/2036		8,547,706
	55,237,000	Dun & Bradstreet Corp. (The), 6.000%, 4/01/2013		59,567,139
	7,051,000	Equifax, Inc., 7.000%, 7/01/2037		7,516,613
	323,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016		343,187
	70,969,000	Ingram Micro, Inc., 5.250%, 9/01/2017		72,150,705
	7,795,000	Intuit, Inc., 5.750%, 3/15/2017		8,534,558
	19,078,000	KLA-Tencor Corp., 6.900%, 5/01/2018		21,040,630
	7,398,000	Motorola Solutions, Inc., 6.500%, 9/01/2025		7,784,516
	6,220,000	Motorola Solutions, Inc., 6.500%, 11/15/2028		6,392,151
	11,402,000	Motorola Solutions, Inc., 6.625%, 11/15/2037		12,234,369
	1,590,000	Motorola Solutions, Inc., 8.000%, 11/01/2011		1,651,872
	2,397,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		2,814,893
	5,603,000	Tyco Electronics Group SA, 6.550%, 10/01/2017		6,412,107
	10,951,000	Xerox Capital Trust I, 8.000%, 2/01/2027		11,142,642
	561,000	Xerox Corp., 6.350%, 5/15/2018		634,309
	7,110,000	Xerox Corp., 6.750%, 2/01/2017		8,163,418

				357,805,714

		Textile — 0.2%
	3,755,000	Phillips-Van Heusen Corp., 7.750%, 11/15/2023		4,120,388
	14,903,000	VF Corp., 6.450%, 11/01/2037		17,236,377

				21,356,765

See accompanying notes to financial statements.

| 22

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Tobacco — 0.1%
$	8,128,000	Reynolds American, Inc., 6.750%, 6/15/2017	$	9,294,791
	1,992,000	Reynolds American, Inc., 7.250%, 6/15/2037		2,108,259

				11,403,050

		Transportation Services — 0.8%
	8,436,000	Erac USA Finance Co., 6.375%, 10/15/2017, 144A		9,457,439
	2,824,000	Erac USA Finance Co., 6.700%, 6/01/2034, 144A		2,917,153
	51,504,000	Erac USA Finance Co., 7.000%, 10/15/2037, 144A		56,115,050

				68,489,642

		Treasuries — 18.6%
	360,010,000	Canadian Government, 2.000%, 9/01/2012, (CAD)		373,418,934
	194,485,000	Canadian Government, 3.750%, 6/01/2019, (CAD)		208,055,820
	4,159,000	Canadian Government, 4.000%, 6/01/2016, (CAD)		4,548,989
	183,949,000	Canadian Government, 4.250%, 6/01/2018, (CAD)		203,911,119
	2,905,736	Hellenic Republic Government Bond, 2.300%, 7/25/2030, (EUR)		2,062,626
	979,000	Hellenic Republic Government Bond, 4.600%, 7/20/2018, (EUR)		854,801
	19,182,000	Hellenic Republic Government Bond, 4.700%, 3/20/2024, (EUR)		16,123,257
	82,723,516	Ireland Government Bond, 4.500%, 10/18/2018, (EUR)		82,780,141
	18,913,126	Ireland Government Bond, 4.500%, 4/18/2020, (EUR)		18,159,487
	4,624,296	Ireland Government Bond, 5.000%, 10/18/2020, (EUR)		4,518,083
	49,203,488	Ireland Government Bond, 5.400%, 3/13/2025, (EUR)		46,438,856
	12,263,000	New Zealand Government Bond, 6.000%, 12/15/2017, (NZD)		9,788,853
	206,733,000	New Zealand Government Bond, 6.500%, 4/15/2013, (NZD)		167,102,140
	726,401,000	Norwegian Government, 4.250%, 5/19/2017, (NOK)		136,648,503
	118,387,000	Norwegian Government, 5.000%, 5/15/2015, (NOK)		22,777,871
	195,679,000	Norwegian Government, 6.000%, 5/16/2011, (NOK)		35,530,232
	587,589,000	Norwegian Government, 6.500%, 5/15/2013, (NOK)		114,127,044
	18,301,446	Portugal Obrigacoes do Tesouro OT, 3.850%, 4/15/2021, (EUR)		18,202,446
	4,599,829	Portugal Obrigacoes do Tesouro OT, 4.800%, 6/15/2020, (EUR)		5,058,451
	242,968,800	U.S. Treasury Bond, 4.250%, 11/15/2040		232,376,818

				1,702,484,471

		Wireless — 0.8%
	31,416,000	Cellco Partnership/Verizon Wireless Capital LLC, 8.500%, 11/15/2018		40,363,717
	15,375,000	Nextel Communications, Inc., Series C, 5.950%, 3/15/2014		15,413,437
	8,549,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		8,581,059
	279,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		281,093
	6,373,000	Sprint Capital Corp., 6.875%, 11/15/2028		5,879,093
	2,594,000	Sprint Capital Corp., 6.900%, 5/01/2019		2,678,305
	612,000	Sprint Capital Corp., 8.750%, 3/15/2032		651,015
	91,000	Sprint Nextel Corp., 6.000%, 12/01/2016		91,341
	500,000	True Move Co. Ltd., 10.750%, 12/16/2013, 144A		541,250
	1,619,000	Vodafone Group PLC, 5.000%, 9/15/2015		1,754,097

				76,234,407

		Wirelines — 4.1%
	8,168,000	AT&T Corp., 6.500%, 3/15/2029		8,642,267
	406,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		473,397

See accompanying notes to financial statements.

23 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		Wirelines — continued
$	1,874,000	BellSouth Corp., 6.000%, 11/15/2034	$	1,834,972
	2,936,000	BellSouth Telecommunications, Inc., 5.850%, 11/15/2045		2,630,829
	6,665,000	BellSouth Telecommunications, Inc., 7.000%, 12/01/2095		6,791,828
	2,408,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		2,579,466
	131,306,000	Deutsche Telekom International Finance BV, 6.000%, 7/08/2019		150,067,920
	3,279,000	GTE Corp., 6.940%, 4/15/2028		3,635,411
	1,440,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		1,429,200
	548,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		560,330
	200,000	Level 3 Financing, Inc., 9.375%, 4/01/2019, 144A		193,500
	4,950,000	Portugal Telecom International Finance BV, EMTN, 4.500%, 6/16/2025, (EUR)		5,367,702
	9,650,000	Portugal Telecom International Finance BV, EMTN, 5.000%, 11/04/2019, (EUR)		11,743,833
	1,698,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,731,960
	2,755,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		2,734,338
	4,370,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		4,544,800
	949,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		1,010,685
	333,000	Qwest Corp., 6.500%, 6/01/2017		367,549
	14,480,000	Qwest Corp., 6.875%, 9/15/2033		14,498,100
	4,668,000	Qwest Corp., 7.200%, 11/10/2026		4,691,340
	9,077,000	Qwest Corp., 7.250%, 9/15/2025		9,667,005
	9,474,000	Qwest Corp., 7.250%, 10/15/2035		9,616,110
	1,566,000	Qwest Corp., 7.500%, 6/15/2023		1,569,915
	10,976,000	Telecom Italia Capital SA, 6.000%, 9/30/2034		9,931,700
	4,091,000	Telecom Italia Capital SA, 6.375%, 11/15/2033		3,860,746
	14,137,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		15,103,186
	54,665,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)		56,624,370
	3,598,000	Verizon Communications, Inc., 6.100%, 4/15/2018		4,032,552
	4,952,000	Verizon Maryland, Inc., Series B, 5.125%, 6/15/2033		4,469,858
	14,230,000	Verizon New England, Inc., 6.500%, 9/15/2011		14,610,653
	2,642,000	Verizon New England, Inc., 7.875%, 11/15/2029		3,056,400
	6,897,000	Verizon New York, Inc., Series B, 7.375%, 4/01/2032		7,738,062
	5,260,000	Verizon Pennsylvania, Inc., 6.000%, 12/01/2028		4,898,007

				370,707,991

		Total Non-Convertible Bonds (Identified Cost $7,555,947,232)		8,507,240,438

	Convertible Bonds — 4.1%
		Automotive — 0.7%
	34,827,000	Ford Motor Co., 4.250%, 11/15/2016		63,123,938

		Life Insurance — 0.8%
	72,915,000	Old Republic International Corp., 3.750%, 3/15/2018		73,188,431

		Media Non-Cable — 0.0%
	517,178	Liberty Media LLC, 3.500%, 1/15/2031		289,620

		REITs — Apartments — 0.0%
	1,370,000	ERP Operating LP, 3.850%, 8/15/2026		1,402,606

See accompanying notes to financial statements.

| 24

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

		REITs — Warehouse/Industrials — 0.4%
$	27,359,000	ProLogis, 3.250%, 3/15/2015	$	32,112,626

		Technology — 2.2%
	35,120,000	Intel Corp., 2.950%, 12/15/2035		36,129,700
	137,016,000	Intel Corp., 3.250%, 8/01/2039		161,165,070

				197,294,770

		Wirelines — 0.0%
	1,129,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		1,113,476
	2,926,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(c)		3,405,133

				4,518,609

		Total Convertible Bonds (Identified Cost $312,340,639)		371,930,600

	Municipals — 0.7%
		California — 0.1%
	1,275,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), Series C, (MBIA insured), 3.750%, 8/01/2028		881,599
	470,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), Series C, (Registered), (MBIA insured), 3.750%, 8/01/2028		349,920
	1,585,000	State of California, (AMBAC insured), 4.500%, 8/01/2027		1,427,483
	4,420,000	State of California, 4.500%, 10/01/2029		3,841,996
	1,285,000	State of California, (AMBAC insured), 4.500%, 8/01/2030		1,106,244
	1,450,000	State of California, 4.500%, 8/01/2030		1,248,290
	820,000	State of California (Various Purpose), (MBIA insured), 3.250%, 12/01/2027		610,892
	3,880,000	State of California (Various Purpose), (AMBAC insured), 4.500%, 12/01/2033		3,269,753

				12,736,177

		District of Columbia — 0.2%
	14,680,000	Metropolitan Washington Airports Authority, 7.462%, 10/01/2046		14,347,792

		Illinois — 0.2%
	530,000	Chicago O’Hare International Airport, Series A, (AGMC insured), 4.500%, 1/01/2038		412,541
	24,640,000	State of Illinois, 5.100%, 6/01/2033		19,979,837

				20,392,378

		Michigan — 0.0%
	2,530,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034(c)		1,794,554

		Ohio — 0.1%
	6,430,000	Buckeye Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/01/2047(c)		4,265,212

		Virginia — 0.1%
	14,240,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(c)		8,956,248

		Total Municipals (Identified Cost $70,030,113)		62,492,361

		Total Bonds and Notes (Identified Cost $7,938,317,984)		8,941,663,399

See accompanying notes to financial statements.

25 |

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)

	Bank Loans — 0.2%
		Airlines — 0.2%
$	17,280,000	AWAS Capital, Inc., New 1st Lien Term Loan, 7.750%, 6/10/2016(e) (Identified Cost $16,828,537)	$	17,639,942

	Short-Term Investments — 1.0%
	96,946,153	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/2011 at 0.000% to be repurchased at $96,946,153 on 4/01/2011 collateralized by $103,955,000 Federal Home Loan Mortgage Corporation, 3.310% due 11/10/2020 valued at $98,887,194 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $96,946,153)		96,946,153


		Total Investments — 98.9% (Identified Cost $8,052,092,674)(a)		9,056,249,494
		Other assets less liabilities — 1.1%		98,109,397

		Net Assets — 100.0%	$	9,154,358,891


	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 25.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales. Amortization of premium on debt securities is excluded for tax purposes.):
		At March 31, 2011, the net unrealized appreciation on investments based on a cost of $8,076,330,313 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	$	1,039,880,133
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(59,960,952	)

		Net unrealized appreciation	$	979,919,181


	(b)	Variable rate security. Rate as of March 31, 2011 is disclosed.
	(c)	Illiquid security. At March 31, 2011, the value of these securities amounted to $137,006,590 or 1.5% of net assets.
	(d)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
	(e)	Variable rate security. Rate shown represents the weighted average rate at March 31, 2011.

	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 March 31, 2011, the value of Rule 144A holdings amounted to $1,491,721,593 or 16.3% of net assets.
	ABS	Asset-Backed Securities
	AGMC	Assured Guaranty Municipal Corp.

See accompanying notes to financial statements.

| 26

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Investment Grade Bond Fund – (continued)




	AMBAC			American Municipal Bond Assurance Corp.
	EMTN			Euro Medium Term Note
	FHLMC			Federal Home Loan Mortgage Corp.
	FNMA			Federal National Mortgage Association
	GMTN			Global Medium Term Note
	MBIA			Municipal Bond Investors Assurance Corp.
	MTN			Medium Term Note
	REITs			Real Estate Investment Trusts

	AUD			Australian Dollar
	BRL			Brazilian Real
	CAD			Canadian Dollar
	EUR			Euro
	GBP			British Pound
	IDR			Indonesian Rupiah
	ISK			Icelandic Krona
	KRW			South Korean Won
	MXN			Mexican Peso
	NOK			Norwegian Krone
	NZD			New Zealand Dollar
	SGD			Singapore Dollar

Industry Summary at March 31, 2011 (Unaudited)


Treasuries	18.6	%
Banking	10.5
Technology	6.1
Commercial Mortgage-Backed Securities	4.2
Pipelines	4.1
Wirelines	4.1
Non-Captive Diversified	4.0
Airlines	3.4
Electric	3.1
ABS Other	2.0
Non-Captive Consumer	2.0
Other Investments, less than 2% each	35.8
Short-Term Investments	1.0

Total Investments	98.9
Other assets less liabilities	1.1

Net Assets	100.0	%

Currency Exposure at March 31, 2011 (Unaudited)


United States Dollar	73.8	%
Canadian Dollar	10.0
New Zealand Dollar	3.6
Norwegian Krone	3.4
Euro	2.9
Other, less than 2% each	5.2

Total Investments	98.9
Other assets less liabilities	1.1

Net Assets	100.0	%

See accompanying notes to financial statements.

27 |

Statement of Assets and Liabilities

March 31, 2011 (Unaudited)


ASSETS
Investments at cost	$	8,052,092,674
Net unrealized appreciation		1,004,156,820

Investments at value		9,056,249,494
Cash		1,111,193
Foreign currency at value (identified cost $5,359,597)		5,205,264
Receivable for Fund shares sold		29,349,509
Receivable for securities sold		1,637,058
Interest receivable		132,012,624
Tax reclaims receivable		889,151

TOTAL ASSETS		9,226,454,293

LIABILITIES
Payable for securities purchased		46,755,156
Payable for Fund shares redeemed		20,868,673
Foreign taxes payable (Note 2)		59,512
Management fees payable (Note 5)		3,123,953
Deferred Trustees’ fees (Note 5)		275,690
Administrative fees payable (Note 5)		368,677
Other accounts payable and accrued expenses		643,741

TOTAL LIABILITIES		72,095,402

NET ASSETS	$	9,154,358,891

NET ASSETS CONSIST OF:
Paid-in capital	$	8,046,504,825
Undistributed net investment income		22,018,240
Accumulated net realized gain on investments and foreign currency transactions		80,230,155
Net unrealized appreciation on investments and foreign currency translations		1,005,605,671

NET ASSETS	$	9,154,358,891

See accompanying notes to financial statements.

| 28

Statement of Assets and Liabilities (continued)

March 31, 2011 (Unaudited)


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	2,677,919,377

Shares of beneficial interest		217,903,628

Net asset value and redemption price per share	$	12.29

Offering price per share (100/95.50 of net asset value) (Note 1)	$	12.87

Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	15,066,570

Shares of beneficial interest		1,231,956

Net asset value and offering price per share	$	12.23

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	2,199,938,808

Shares of beneficial interest		180,383,287

Net asset value and offering price per share	$	12.20

Class Y shares:
Net assets	$	4,142,997,406

Shares of beneficial interest		336,905,508

Net asset value, offering and redemption price per share	$	12.30

Admin Class shares:
Net assets	$	2,494,592

Shares of beneficial interest		203,221

Net asset value, offering and redemption price per share	$	12.28

Class J shares:
Net assets	$	115,942,138

Shares of beneficial interest		9,449,290

Net asset value and redemption price per share	$	12.27

Offering price per share (100/96.50 of net asset value) (Note 1)	$	12.72

See accompanying notes to financial statements.

29 |

Statement of Operations

For the Six Months Ended March 31, 2011 (Unaudited)


INVESTMENT INCOME
Interest	$	260,813,273

Expenses
Management fees (Note 5)		19,517,332
Service and distribution fees (Note 5)		16,159,504
Administrative fees (Note 5)		2,280,026
Trustees’ fees and expenses (Note 5)		108,938
Transfer agent fees and expenses (Notes 5 and 6)		4,117,302
Audit and tax services fees		31,207
Custodian fees and expenses		234,697
Legal fees (Note 6)		127,147
Registration fees (Note 6)		124,682
Shareholder reporting expenses (Note 6)		359,968
Miscellaneous expenses		150,306

Total expenses		43,211,109

Net investment income		217,602,164

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on:
Investments		123,164,176
Foreign currency transactions		2,285,221
Net change in unrealized appreciation (depreciation) on:
Investments		(122,131,625	)
Foreign currency translations		330,832

Net realized and unrealized gain on investments and foreign currency transactions		3,648,604

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	221,250,768

See accompanying notes to financial statements.

| 30

Statement of Changes in Net Assets


	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
FROM OPERATIONS:
Net investment income	$	217,602,164		$	428,365,635
Net realized gain on investments and foreign currency transactions		125,449,397			221,545,263
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(121,800,793	)		549,147,089

Net increase in net assets resulting from operations		221,250,768			1,199,057,987

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(70,587,051	)		(141,582,997	)
Class B		(334,325	)		(676,565	)
Class C		(50,242,873	)		(102,299,334	)
Class Y		(111,045,597	)		(192,755,479	)
Admin Class		(33,524	)		(9,090	)
Class J		(2,743,509	)		(5,898,638	)
Net realized capital gains
Class A		(60,444,223	)		(6,651,489	)
Class B		(338,411	)		(39,640	)
Class C		(51,169,312	)		(5,758,632	)
Class Y		(92,540,414	)		(8,463,329	)
Admin Class		(26,910	)		—
Class J		(2,664,737	)		(320,597	)

Total distributions		(442,170,886	)		(464,455,790	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		(935,027,734	)		433,617,282

Net increase (decrease) in net assets		(1,155,947,852	)		1,168,219,479
NET ASSETS
Beginning of the period		10,310,306,743			9,142,087,264

End of the period	$	9,154,358,891		$	10,310,306,743

UNDISTRIBUTED NET INVESTMENT INCOME	$	22,018,240		$	39,402,955

See accompanying notes to financial statements.

31 |

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| 32

Financial Highlights

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income(a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions
INVESTMENT GRADE BOND FUND
Class A
3/31/2011(f)	$	12.56	$	0.28	$	0.01		$	0.29		$	(0.30	)	$	(0.26	)	$	(0.56	)
9/30/2010		11.64		0.55		0.96			1.51			(0.56	)		(0.03	)		(0.59	)
9/30/2009		10.54		0.60		1.22			1.82			(0.59	)		(0.13	)		(0.72	)
9/30/2008		11.73		0.60		(1.15	)		(0.55	)		(0.64	)		—			(0.64	)
9/30/2007		11.35		0.58		0.42			1.00			(0.62	)		—			(0.62	)
9/30/2006		11.71		0.51		0.10			0.61			(0.75	)		(0.22	)		(0.97	)
Class B
3/31/2011(f)		12.50		0.23		0.01			0.24			(0.25	)		(0.26	)		(0.51	)
9/30/2010		11.59		0.45		0.95			1.40			(0.46	)		(0.03	)		(0.49	)
9/30/2009		10.50		0.51		1.21			1.72			(0.50	)		(0.13	)		(0.63	)
9/30/2008		11.68		0.50		(1.14	)		(0.64	)		(0.54	)		—			(0.54	)
9/30/2007		11.31		0.47		0.43			0.90			(0.53	)		—			(0.53	)
9/30/2006		11.67		0.42		0.10			0.52			(0.66	)		(0.22	)		(0.88	)
Class C
3/31/2011(f)		12.47		0.23		0.01			0.24			(0.25	)		(0.26	)		(0.51	)
9/30/2010		11.56		0.46		0.96			1.42			(0.48	)		(0.03	)		(0.51	)
9/30/2009		10.47		0.52		1.22			1.74			(0.52	)		(0.13	)		(0.65	)
9/30/2008		11.66		0.51		(1.15	)		(0.64	)		(0.55	)		—			(0.55	)
9/30/2007		11.30		0.49		0.42			0.91			(0.55	)		—			(0.55	)
9/30/2006		11.66		0.42		0.11			0.53			(0.67	)		(0.22	)		(0.89	)
Class Y
3/31/2011(f)		12.56		0.30		0.02			0.32			(0.32	)		(0.26	)		(0.58	)
9/30/2010		11.65		0.58		0.95			1.53			(0.59	)		(0.03	)		(0.62	)
9/30/2009		10.55		0.62		1.23			1.85			(0.62	)		(0.13	)		(0.75	)
9/30/2008		11.73		0.64		(1.15	)		(0.51	)		(0.67	)		—			(0.67	)
9/30/2007		11.36		0.61		0.41			1.02			(0.65	)		—			(0.65	)
9/30/2006		11.71		0.55		0.11			0.66			(0.79	)		(0.22	)		(1.01	)
Admin Class
3/31/2011(f)		12.55		0.27		0.01			0.28			(0.29	)		(0.26	)		(0.55	)
9/30/2010*		11.80		0.33		0.73			1.06			(0.31	)		—			(0.31	)
Class J
3/31/2011(f)		12.54		0.25		0.01			0.26			(0.27	)		(0.26	)		(0.53	)
9/30/2010		11.63		0.49		0.95			1.44			(0.50	)		(0.03	)		(0.53	)
9/30/2009		10.53		0.55		1.22			1.77			(0.54	)		(0.13	)		(0.67	)
9/30/2008		11.71		0.54		(1.14	)		(0.60	)		(0.58	)		—			(0.58	)
9/30/2007		11.34		0.52		0.42			0.94			(0.57	)		—			(0.57	)
9/30/2006		11.69		0.46		0.11			0.57			(0.70	)		(0.22	)		(0.92	)

*	From commencement of Class operations on February 1, 2010 through September 30, 2010.

(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, if applicable, total returns would have been lower.

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

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

See accompanying notes to financial statements.

33 |


							Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%)(b)(c)			Net assets, end of the period (000’s)		Net expenses (%)(d)(e)			Gross expenses (%)(e)			Net investment income (%)(e)		Portfolio turnover rate(%)


$	12.29		2.44		$	2,677,919		0.80			0.80			4.54		6
	12.56		13.41			3,092,956		0.81			0.81			4.58		25
	11.64		18.64			2,946,489		0.80			0.80			5.87		30
	10.54		(5.12	)		1,867,335		0.80			0.80			5.20		35
	11.73		9.14			834,736		0.83			0.83			5.05		35
	11.35		5.63			152,054		0.92	(g)		0.92	(g)		4.59		35

	12.23		2.06			15,067		1.55			1.55			3.79		6
	12.50		12.43			17,113		1.65			1.65			3.74		25
	11.59		17.59			17,489		1.67			1.67			5.07		30
	10.50		(5.88	)		16,009		1.65	(h)		1.65	(h)		4.29		35
	11.68		8.17			17,082		1.70			1.71			4.16		35
	11.31		4.83			5,525		1.70			1.89			3.75		35

	12.20		2.07			2,199,939		1.55			1.55			3.79		6
	12.47		12.58			2,593,324		1.56			1.56			3.83		25
	11.56		17.80			2,495,305		1.56			1.56			5.09		30
	10.47		(5.84	)		1,333,421		1.55			1.55			4.45		35
	11.66		8.28			605,934		1.57			1.57			4.30		35
	11.30		4.87			82,863		1.70	(g)		1.70	(g)		3.79		35

	12.30		2.65			4,142,997		0.55			0.55			4.80		6
	12.56		13.60			4,473,001		0.56			0.56			4.82		25
	11.65		18.94			3,531,187		0.54			0.54			6.01		30
	10.55		(4.79	)		1,044,046		0.53			0.53			5.48		35
	11.73		9.32			448,873		0.55	(h)		0.55	(h)		5.33		35
	11.36		6.09			76,548		0.55			0.63			4.94		35

	12.28		2.33			2,495		1.06			1.06			4.40		6
	12.55		9.13			879		1.08			7.68			4.06		25

	12.27		2.19			115,942		1.30			1.30			4.05		6
	12.54		12.77			133,034		1.30	(i)		1.30	(i)		4.09		25
	11.63		18.05			151,617		1.30			1.31			5.48		30
	10.53		(5.50	)		167,775		1.28			1.28			4.66		35
	11.71		8.52			180,453		1.28			1.28			4.57		35
	11.34		5.29			214,894		1.30	(g)		1.30	(g)		4.09		35

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

(f)	For the six months ended March 31, 2011 (Unaudited).

(g)	Includes fee/expense recovery of 0.06%, 0.09% and 0.03% for Class A, Class C and Class J shares, respectively.

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

(i)	Includes fee/expense recovery of 0.01% for Class J shares.

See accompanying notes to financial statements.

| 34

Notes to Financial Statements

March 31, 2011 (Unaudited)

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

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

Class A shares are sold with a maximum front-end sales charge of 4.50%. Class B shares do not pay a front-end sales charge; however, they are charged higher Rule 12b-1 fees, and are subject to a contingent deferred sales charge (“CDSC”) if such shares are redeemed within six years of purchase. After eight years of ownership, Class B shares convert to Class A shares. Class C shares do not pay a front-end sales charge, do not convert to any other class of shares, pay higher Rule 12b-1 fees than Class A shares and may be subject to a CDSC of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class Y shares are generally intended for institutional investors with a minimum initial investment of $100,000, though some categories of investors are exempted from the minimum investment amount as outlined in the Fund’s prospectus. Admin Class shares do not pay a front-end sales charge or a CDSC, but do pay a Rule 12b-1 fee. Admin Class shares are offered exclusively through intermediaries. Class J shares are only offered to non-U.S. investors and are sold with a maximum front-end sales charge of 3.50%.

Most expenses of the Trust can be directly attributed to a Fund. Expenses which can not be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the Funds in the Trust. Expenses of the Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (Rule 12b-1 service and distribution fees for Class A, Class B, Class C, Admin Class and Class J, and registration, legal, shareholder reporting and transfer agent fees for Class J). 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.

2. Significant Accounting Policies. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements.

35 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

The Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions subsequent to period-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Fund’s financial statements.

a. Valuation. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Fund by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Fund may be valued on the basis of a price provided by a principal market maker. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Investments in other open-end investment companies are valued at their net asset value each day. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Fund’s investment adviser using consistently applied procedures under the general supervision of the Board of Trustees.

The Fund may hold securities traded in foreign markets. Foreign securities are valued at the market price in the foreign market. However, if events occurring after the close of the foreign market (but before the close of regular trading on the New York Stock Exchange) are believed to materially affect the value of those securities, such securities are fair valued pursuant to procedures approved by the Board of Trustees. When fair valuing securities, the Fund may, among other things, use modeling tools or other processes that may take into account factors such as securities market activity and/or significant events that occur after the close of the foreign market and before the Fund calculates its net asset value.

| 36

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

c. Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. The 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 on the respective dates of such transactions.

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

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

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

37 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

There were no forward foreign currency contracts held by the Fund during the six months ended March 31, 2011.

e. Federal and Foreign Income Taxes. The Trust treats each Fund as a separate entity for federal income tax purposes. The Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of the Fund’s tax positions for the open tax years as of March 31, 2011 and has concluded that no provisions for income tax are required. The Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Fund. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

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

f. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as defaulted bonds, reclassification of realized capital gain to ordinary income, foreign currency transactions, paydown adjustments and premium amortization. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to premium amortization, deferred Trustees’ fees, defaulted bond accruals, securities lending collateral gain/loss adjustments, forward contract mark to market, contingent payment debt instruments and wash sales. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

| 38

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the year ended September 30, 2010 was as follows:


2010 Distributions Paid From:
Ordinary Income	Long-Term Capital Gains	Total
$464,455,790	$ —	$464,455,790

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

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

h. Securities Lending. The Fund has entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Fund, to lend securities to certain designated borrowers. The loans are collateralized with cash or securities in an amount equal to at least 105% or 102% of the market value (including accrued interest) of the loaned international or domestic securities, respectively, when the loan is initiated. Thereafter, the value of the collateral must remain at least 102% of the market value (including accrued interest) of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value (including accrued interest) of loaned securities for non-U.S. equities; and at least 100% of the market value (including accrued interest) of loaned securities for U.S. Government securities, sovereign debt issued by non-U.S. Governments and non-U.S. corporate debt. In the event that the market value

39 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

of the collateral falls below the required percentages described above, the borrower will deliver additional collateral on the next business day. As with other extensions of credit, the Fund may bear the risk of loss with respect to the investment of the collateral. The Fund invests cash collateral in short-term investments, a portion of the income from which is remitted to the borrowers and the remainder allocated between the Fund and State Street Bank as lending agent.

For the six months ended March 31, 2011, the Fund did not loan securities under this agreement.

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

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

•

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

•

Level 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 the Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available).

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

| 40

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2011, at value:

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	—	$	110,218,319	$	5,636,469	$	115,854,788
Non-Captive Consumer		1,312,017		177,533,715		—		178,845,732
Non-Captive Diversified		—		326,067,683		42,861,887		368,929,570
All Other Non-Convertible Bonds(a)		—		7,843,610,348		—		7,843,610,348

Total Non-Convertible Bonds		1,312,017		8,457,430,065		48,498,356		8,507,240,438

Convertible Bonds(a)		—		371,930,600		—		371,930,600
Municipals(a)		—		62,492,361		—		62,492,361

Total Bonds and Notes		1,312,017		8,891,853,026		48,498,356		8,941,663,399

Bank Loans(a)		—		17,639,942		—		17,639,942
Short-Term Investments		—		96,946,153		—		96,946,153

Total	$	1,312,017	$	9,006,439,121	$	48,498,356	$	9,056,249,494

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

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of March 31, 2011:

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2010		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	24,880,941	$	—	$	3,254	$	309,635	$	—
Banking		9,716,202		—		—		—		—
Non-Captive Diversified		—		—		—		106,887		42,755,000

Total	$	34,597,143	$	—	$	3,254	$	416,522	$	42,755,000

41 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Asset Valuation Inputs (continued)


Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of March 31, 2011		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at March 31, 2011
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	(119,126	)	$	—	$	(19,438,235	)	$	5,636,469	$	309,422
Banking		—			—		(9,716,202	)		—		—
Non-Captive Diversified		—			—		—			42,861,887		106,887

Total	$	(119,126	)	$	—	$	(29,154,437	)	$	48,498,356	$	416,309

Debt securities valued at $29,154,437 were transferred from Level 3 to Level 2 during the period ended March 31, 2011. At September 30, 2010, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund; at March 31, 2011, these securities were valued on the basis of evaluated bids furnished to the Fund by a pricing service where inputs are observable to the Fund.

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

4. Purchases and Sales of Securities. For the six months ended March 31, 2011, purchases and sales of securities (excluding short-term investments and U.S. Government/agency securities and including paydowns) were $382,457,256 and $1,493,006,399, respectively. Purchases and sales of U.S. Government/agency securities (excluding short-term investments and including paydowns) were $233,981,844 and $268,075,006, respectively.

5. Management Fees and Other Transactions with Affiliates.

a. Management Fees. Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to the Fund. Under the terms of the management agreement, the Fund pays a management fee at the annual rate of 0.40% of average daily net assets, calculated daily and payable monthly.

| 42

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

reevaluated on an annual basis. Management fees payable, as reflected on the Statement of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to this undertaking.

For the six months ended March 31, 2011, the expense limits as a percentage of average daily net assets under the expense limitation agreement were as follows:


Expense Limit as a Percentage of Average Daily Net Assets
Class A	Class B	Class C	Class Y	Admin Class	Class J
0.95%	1.70%	1.70%	0.70%	1.20%	1.30%

Loomis Sayles shall be permitted to recover expenses it has borne under the expense limitation agreement (whether through waiver of its management fees or otherwise) on a class by class basis in later periods to the extent the expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such 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 six months ended March 31, 2011, the management fees for the Fund were $19,517,332 (0.40% of average daily net assets).

No expenses were recovered during the six months ended March 31, 2011 under the terms of the expense limitation agreement.

b. Service and Distribution Fees. Natixis Distributors, L.P. (“Natixis Distributors”), a wholly-owned subsidiary of Natixis US, has entered into a distribution agreement with the Trust. Pursuant to this agreement, Natixis Distributors serves as principal underwriter of the Funds of the Trust, except Class J shares of the Fund. The Fund has entered into a distribution agreement relating to Class J shares with Loomis Sayles Distributors, L.P. (“Loomis Sayles Distributors”), a wholly-owned subsidiary of Natixis US.

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

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

43 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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

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

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

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

Class J shares are subject to a monthly shareholder service fee at an annual rate of 0.25% and a monthly distribution fee at an annual rate of 0.50% of the average daily net assets attributable to the Fund’s Class J shares, both payable to Loomis Sayles Distributors, pursuant to a shareholder service and distribution plan adopted under Rule 12b-1.

For the six months ended March 31, 2011, the Fund paid the following service and distribution fees:


Service Fees					Distribution Fees
Class A	Class B	Class C	Admin Class	Class J	Class B	Class C	Admin Class	Class J
$3,599,077	$20,056	$3,002,470	$1,977	$155,455	$60,169	$9,007,412	$1,977	$310,911

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

| 44

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Trusts”), Hansberger International Series and Natixis Advisors, the Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion and 0.0350% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the six months ended March 31, 2011, the Fund paid $2,280,026 in administrative fees to Natixis Advisors.

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

For the six months ended March 31, 2011, the Fund paid the following sub-transfer agent fees which are reflected in transfer agent fees and expenses in the Statement of Operations.


Sub-Transfer Agent Fees
Class A	Class B	Class C	Class Y	Admin Class	Class J
$1,111,477	$ 6,174	$929,135	$1,653,631	$ 510	$ —

e. Commissions. Commissions (including CDSCs) on Fund shares retained by Natixis Distributors were $1,250,410 and commissions on Class J shares of the Fund retained by Loomis Sayles Distributors were $12,074 for the six months ended March 31, 2011.

45 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chairman receives an additional retainer fee at an annual rate of $15,000. Each Contract Review and Governance Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the funds until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain funds of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts, and Hansberger International Series, and are normally reflected as Trustees’ fees and expenses in the Statement of Operations. The portions of the accrued obligations allocated to the Fund under the Plan are reflected as Deferred Trustees’ fees on the Statement of Assets and Liabilities.

6. Class-Specific Expenses. For the six months ended March 31, 2011, the Fund paid the following class-specific expenses:


	Class A		Class B		Class C		Class Y		Admin Class		Class J
Transfer Agent Fees and Expenses	$	1,228,631	$	6,850	$	1,024,877	$	1,851,768	$	688	$	4,488
Registration Fees		37,033		206		30,886		55,444		19		1,094
Legal Fees		35,243		196		29,414		52,901		18		9,375
Shareholding Reporting Expenses		95,605		532		79,765		143,785		51		40,230

Transfer agent, registration, legal, and shareholder reporting 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.

| 46

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

Effective April 21, 2011, the Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, will participate in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that will participate in the line of credit. Interest will be 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 0.125% per annum, payable at the end of each calendar quarter, will be accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the six months ended March 31, 2011, the Fund had no borrowings under these agreements.

8. Concentration of Risk. The 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. At March 31, 2011, the Loomis Sayles Employees’ Profit Sharing Retirement Plan held 437,418 shares of beneficial interest of Class Y shares.

47 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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


	Six Months Ended March 31, 2011					Year Ended September 30, 2010*
	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	30,055,284		$	370,865,154		91,844,109		$	1,096,753,290
Issued in connection with the reinvestment of distributions	9,031,964			109,756,332		10,182,612			121,128,395
Redeemed	(67,503,712	)		(830,805,860	)	(108,792,537	)		(1,299,578,958	)

Net change	(28,416,464	)	$	(350,184,374	)	(6,765,816	)	$	(81,697,273	)

Class B
Issued from the sale of shares	41,570		$	507,934		105,865		$	1,259,480
Issued in connection with the reinvestment of distributions	30,887			373,181		30,442			360,482
Redeemed	(209,825	)		(2,567,973	)	(276,089	)		(3,290,669	)

Net change	(137,368	)	$	(1,686,858	)	(139,782	)	$	(1,670,707	)

Class C
Issued from the sale of shares	10,988,292		$	134,387,222		43,761,421		$	518,776,270
Issued in connection with the reinvestment of distributions	4,301,307			51,841,924		4,398,460			51,955,271
Redeemed	(42,952,636	)		(524,473,305	)	(55,937,893	)		(664,795,170	)

Net change	(27,663,037	)	$	(338,244,159	)	(7,778,012	)	$	(94,063,629	)

Class Y
Issued from the sale of shares	75,975,072		$	936,855,421		174,435,982		$	2,089,695,869
Issued in connection with the reinvestment of distributions	12,619,424			153,357,091		11,822,258			140,840,248
Redeemed	(90,706,115	)		(1,116,112,577	)	(133,376,609	)		(1,591,510,831	)
Redeemed in-kind (Note 11)	(16,974,699	)		(206,412,335	)	—			—

Net change	(19,086,318	)	$	(232,312,400	)	52,881,631		$	639,025,286

Admin Class
Issued from the sale of shares	151,463		$	1,856,329		78,071		$	948,013
Issued in connection with the reinvestment of distributions	4,040			49,010		719			8,728
Redeemed	(22,313	)		(273,493	)	(8,759	)		(107,600	)

Net change	133,190		$	1,631,846		70,031		$	849,141

Class J
Issued from the sale of shares	195,500		$	2,400,004		1,179,600		$	14,218,250
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(1,353,050	)	$	(16,631,793	)	(3,610,670	)		(43,043,786	)

Net change	(1,157,550	)	$	(14,231,789	)	(2,431,070	)	$	(28,825,536	)

Increase (decrease) from capital share transactions	(76,327,547	)	$	(935,027,734	)	35,836,982		$	433,617,282

*	From commencement of operations on February 1, 2010 through September 30, 2010 for Admin Class shares.

| 48

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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 Fund realized a gain of $19,158,810 on redemptions in-kind during the six months ended March 31, 2011. This amount is included in realized gain (loss) on the Statement of Operations.

49 |

SEMIANNUAL REPORT

March 31, 2011

LOGO

Loomis Sayles Disciplined Equity Fund

Loomis, Sayles & Company, L.P.

TABLE OF CONTENTS

Investment Results page 1

Portfolio of Investments page 4

Financial Statements page 6

LOOMIS SAYLES DISCIPLINED EQUITY FUND

Investment Results through March 31, 2011

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

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

March 31, 2001 through March 31, 2011

LOGO

Average Annual Returns — March 31, 2011⁵



	6 Months			1 Year			5 Years			10 Years

Class A (Inception 11/30/01)¹
Net Asset Value²		19.68	%		14.48	%		2.20	%		3.82	%
With Maximum Sales Charge³		12.74			7.97			1.01			3.20

Class B (Inception 9/12/03)¹
Net Asset Value²		19.34			13.83			1.45			3.00
With CDSC⁴		14.34			8.83			1.13			3.00

Class C (Inception 9/12/03)¹
Net Asset Value²		19.39			13.83			1.44			2.95
With CDSC⁴		18.39			12.83			1.44			2.95

Class Y (Inception 7/31/00)
Net Asset Value²		19.96			14.78			2.55			4.16

Comparative Performance
S&P 500 Index		17.31			15.65			2.62			3.29
Morningstar Large Growth Fund Avg.		17.88			16.77			3.08			2.91

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

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


Fund Composition	% of Net Assets as of 3/31/11
Common Stocks		99.1
Written Options		-0.1
Other		1.0

Ten Largest Holdings	% of Net Assets as of 3/31/11
Apple, Inc.		4.8
Chevron Corp.		4.6
Oracle Corp.		4.2
JPMorgan Chase & Co.		3.5
Caterpillar, Inc.		3.4
QUALCOMM, Inc.		3.3
UnitedHealth Group, Inc.		3.3
Parker Hannifin Corp.		3.3
Coca-Cola Enterprises, Inc.		3.2
Halliburton Co.		3.1

Five Largest Industries	% of Net Assets as of 3/31/11
Machinery		11.2
Oil, Gas & Consumable Fuels		10.7
Health Care Providers & Services		8.8
Software		6.8
Computers & Peripherals		5.8

Portfolio holdings and asset allocations will vary.

Expense Ratios

as stated in the most recent prospectus


Share Class	Gross Expense Ratio⁶			Net Expense Ratio⁷
A		1.45	%		1.25	%
B		2.20			2.00
C		2.20			2.00
Y		1.20			1.00

NOTES TO CHARTS

See	page 2 for a description of the indices.

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

2	At Net Asset Value (NAV) – does not reflect payment of sales charge at time of purchase.

3	With Maximum Sales Charge (MSC) – reflects maximum sales charge of 5.75% at time of purchase.

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

6	Before fee waivers and/or expense reimbursements.

7	After fee waivers and/or expense reimbursements. Waivers/reimbursements are contractual and are set to expire 1/31/12. Contracts are reevaluated on an annual basis.

1 |

ADDITIONAL INFORMATION

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

INDEX/AVERAGE DESCRIPTIONS:

Standard & Poor’s 500 Index (“S&P 500”) is a widely recognized measure of U.S. stock market performance. It is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation, among other factors.

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

PROXY VOTING INFORMATION

A description of the fund’s proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the fund’s website at ga.natixis.com; and on the Securities and Exchange Commission’s website at www.sec.gov. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30, 2010 is available from the fund’s website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

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

| 2

UNDERSTANDING FUND EXPENSES


LOOMIS SAYLES DISCIPLINED EQUITY FUND	BEGINNING ACCOUNT VALUE 10/1/2010		ENDING ACCOUNT VALUE 3/31/2011		EXPENSES PAID DURING PERIOD* 10/1/2010 – 3/31/2011
Class A
Actual		$1,000.00		$1,196.80		$6.85
Hypothetical (5% return before expenses)		$1,000.00		$1,018.70		$6.29
Class B
Actual		$1,000.00		$1,193.40		$10.94
Hypothetical (5% return before expenses)		$1,000.00		$1,014.96		$10.05
Class C
Actual		$1,000.00		$1,193.90		$10.94
Hypothetical (5% return before expenses)		$1,000.00		$1,014.96		$10.05
Class Y
Actual		$1,000.00		$1,199.60		$5.48
Hypothetical (5% return before expenses)		$1,000.00		$1,019.95		$5.04

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

3 |

Portfolio of Investments — as of March 31, 2011 (Unaudited)

Loomis Sayles Disciplined Equity Fund


Shares		Description	Value (†)

	Common Stocks — 99.1% of Net Assets
		Aerospace & Defense — 1.8%
	3,561	Precision Castparts Corp.	$	524,108

		Automobiles — 1.0%
	20,191	Ford Motor Co.(b)		301,048

		Beverages — 3.2%
	33,198	Coca-Cola Enterprises, Inc.		906,305

		Capital Markets — 2.6%
	5,925	Franklin Resources, Inc.		741,099

		Commercial Banks — 2.0%
	18,433	Wells Fargo & Co.		584,326

		Communications Equipment — 3.3%
	17,507	QUALCOMM, Inc.		959,909

		Computers & Peripherals — 5.8%
	3,925	Apple, Inc.(b)		1,367,666
	6,258	NetApp, Inc.(b)		301,511

				1,669,177

		Diversified Financial Services — 3.5%
	21,599	JPMorgan Chase & Co.		995,714

		Diversified Telecommunication Services — 1.6%
	15,134	AT&T, Inc.		463,100

		Electric Utilities — 1.9%
	15,576	Northeast Utilities		538,930

		Energy Equipment & Services — 3.1%
	17,594	Halliburton Co.		876,885

		Food & Staples Retailing — 2.7%
	18,977	Walgreen Co.		761,737

		Food Products — 1.7%
	28,419	Sara Lee Corp.		502,164

		Health Care Providers & Services — 8.8%
	12,090	Express Scripts, Inc.(b)(c)		672,325
	9,699	HCA Holdings, Inc.(b)		328,505
	7,301	McKesson Corp.		577,144
	20,804	UnitedHealth Group, Inc.		940,341

				2,518,315

		Hotels, Restaurants & Leisure — 4.0%
	8,742	Royal Caribbean Cruises Ltd.(b)		360,695
	13,542	Starwood Hotels & Resorts Worldwide, Inc.(c)		787,061

				1,147,756

		Independent Power Producers & Energy Traders — 1.2%
	21,678	Calpine Corp.(b)		344,030

		Insurance — 5.6%
	19,454	MetLife, Inc.		870,178
	28,437	Unum Group		746,471

				1,616,649

		Internet & Catalog Retail — 1.8%
	1,027	Priceline.com, Inc.(b)(c)		520,114

		Internet Software & Services — 2.2%
	1,083	Google, Inc., Class A(b)		634,865

		Machinery — 11.2%
	8,766	Caterpillar, Inc.		976,094
	3,805	Cummins, Inc.		417,104
	15,814	Eaton Corp.		876,728
	9,915	Parker Hannifin Corp.		938,753

				3,208,679

		Media — 1.5%
	10,283	Walt Disney Co. (The)		443,094


Shares		Description	Value (†)

		Metals & Mining — 1.7%
	8,811	Freeport-McMoRan Copper & Gold, Inc.(c)	$	489,451

		Oil, Gas & Consumable Fuels — 10.7%
	12,226	Chevron Corp.		1,313,439
	43,740	El Paso Corp.		787,320
	5,732	EOG Resources, Inc.		679,299
	3,132	Noble Energy, Inc.(c)		302,708

				3,082,766

		Paper & Forest Products — 2.0%
	18,707	International Paper Co.		564,577

		Personal Products — 2.4%
	7,187	Estee Lauder Cos., Inc. (The), Class A		692,539

		Pharmaceuticals — 2.4%
	9,714	Allergan, Inc.		689,888

		Software — 6.8%
	29,627	Microsoft Corp.		751,341
	35,771	Oracle Corp.		1,193,678

				1,945,019

		Textiles, Apparel & Luxury Goods — 1.3%
	3,917	Fossil, Inc.(b)		366,827

		Wireless Telecommunication Services — 1.3%
	6,949	American Tower Corp., Class A(b)		360,097

		Total Common Stocks (Identified Cost $23,945,850)		28,449,168


		Total Investments — 99.1% (Identified Cost $23,945,850)(a)		28,449,168
		Other assets less liabilities — 0.9%		257,151

		Net Assets — 100.0%	$	28,706,319

Shares
	Written Options — (0.1%)
		Options on Securities — (0.1%)
	5,100	Express Scripts, Inc., Call expiring May 21, 2011 at 60		(3,162	)
	3,700	Freeport-McMoRan Copper & Gold, Inc., Call expiring May 21, 2011 at 60		(4,680	)
	2,000	Noble Energy, Inc., Call expiring May 21, 2011 at 105		(2,750	)
	300	Priceline.com, Inc., Call expiring April 16, 2011 at 500		(5,070	)
	5,700	Starwood Hotels & Resorts Worldwide, Inc., Call expiring May 21, 2011 at 65		(3,762	)

		Total Written Options (Premiums Received $17,718)	$	(19,424	)


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information (Amounts exclude certain adjustments made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.):
		At March 31, 2011, the net unrealized appreciation on investments based on a cost of $23,945,850 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	4,719,230
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(215,912	)

		Net unrealized appreciation	$	4,503,318

See accompanying notes to financial statements.

| 4

Portfolio of Investments – as of March 31, 2011 (Unaudited)

Loomis Sayles Disciplined Equity Fund – (continued)


	(b)			Non-income producing security.
	(c)			All or a portion of this security has been pledged as collateral for outstanding call options.

Industry Summary at March 31, 2011 (Unaudited)


Machinery	11.2	%
Oil, Gas & Consumable Fuels	10.7
Health Care Providers & Services	8.8
Software	6.8
Computers & Peripherals	5.8
Insurance	5.6
Hotels, Restaurants & Leisure	4.0
Diversified Financial Services	3.5
Communications Equipment	3.3
Beverages	3.2
Energy Equipment & Services	3.1
Food & Staples Retailing	2.7
Capital Markets	2.6
Personal Products	2.4
Pharmaceuticals	2.4
Internet Software & Services	2.2
Commercial Banks	2.0
Paper & Forest Products	2.0
Other Investments, less than 2% each	16.8

Total Investments	99.1
Other assets less liabilities (including written options)	0.9

Net Assets	100.0	%

See accompanying notes to financial statements.

5 |

Statement of Assets and Liabilities

March 31, 2011 (Unaudited)


ASSETS
Investments at cost	$	23,945,850
Net unrealized appreciation		4,503,318

Investments at value		28,449,168
Receivable for Fund shares sold		663
Receivable for securities sold		8,462,691
Dividends receivable		2,581

TOTAL ASSETS		36,915,103

LIABILITIES
Options written, at value (premiums received $17,718) (Note 2)		19,424
Payable for Fund shares redeemed		32,690
Payable to custodian bank		8,049,116
Management fees payable (Note 6)		4,083
Deferred Trustees’ fees (Note 6)		65,604
Administrative fees payable (Note 6)		1,451
Other accounts payable and accrued expenses		36,416

TOTAL LIABILITIES		8,208,784

NET ASSETS	$	28,706,319

NET ASSETS CONSIST OF:
Paid-in capital	$	25,406,455
Distributions in excess of net investment income		(53,336	)
Accumulated net realized loss on investments and options written		(1,148,412	)
Net unrealized appreciation on investments and options written		4,501,612

NET ASSETS	$	28,706,319

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	2,263,460

Shares of beneficial interest		277,596

Net asset value and redemption price per share	$	8.15

Offering price per share (100/94.25 of net asset value) (Note 1)	$	8.65

Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	149,556

Shares of beneficial interest		18,940

Net asset value and offering price per share	$	7.90

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	1,666,451

Shares of beneficial interest		213,153

Net asset value and offering price per share	$	7.82

Class Y shares:
Net assets	$	24,626,852

Shares of beneficial interest		2,998,960

Net asset value, offering and redemption price per share	$	8.21

See accompanying notes to financial statements.

| 6

Statement of Operations

For the Six Months Ended March 31, 2011 (Unaudited)


INVESTMENT INCOME
Dividends	$	248,711

Expenses
Management fees (Note 6)		88,863
Service and distribution fees (Note 6)		10,712
Administrative fees (Note 6)		8,304
Trustees’ fees and expenses (Note 6)		19,199
Transfer agent fees and expenses (Note 6)		10,930
Audit and tax services fees		26,510
Custodian fees and expenses		11,872
Legal fees		406
Registration fees		34,580
Shareholder reporting expenses		2,528
Miscellaneous expenses		6,613

Total expenses		220,517
Less waiver and/or expense reimbursement (Note 6)		(31,667	)

Net expenses		188,850

Net investment income		59,861

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND OPTIONS WRITTEN
Net realized gain (loss) on:
Investments		4,447,253
Options written		(106,081	)
Net change in unrealized appreciation (depreciation) on:
Investments		1,824,629
Options written		(1,478	)

Net realized and unrealized gain on investments and options written		6,164,323

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,224,184

See accompanying notes to financial statements.

7 |

Statement of Changes in Net Assets


	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
FROM OPERATIONS:
Net investment income	$	59,861		$	99,248
Net realized gain on investments and options written		4,341,172			2,429,778
Net change in unrealized appreciation (depreciation) on investments and options written		1,823,151			(1,084,251	)

Net increase in net assets resulting from operations		6,224,184			1,444,775

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(3,047	)		(6,227	)
Class B		—			—
Class C		—			—
Class Y		(120,303	)		(178,902	)

Total distributions		(123,350	)		(185,129	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		(11,678,612	)		2,940,934

Net increase (decrease) in net assets		(5,577,778	)		4,200,580
NET ASSETS
Beginning of the period		34,284,097			30,083,517

End of the period	$	28,706,319		$	34,284,097

UNDISTRIBUTED NET INVESTMENT INCOME (DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME)	$	(53,336	)	$	10,153

See accompanying notes to financial statements.

| 8

Financial Highlights

For a share outstanding throughout each period.


			Income (Loss) From Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment income (loss) (a)(b)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions

Class A
3/31/2011(g)	$	6.81	$	0.00		$	1.35		$	1.35		$	(0.01	)	$	—		$	(0.01	)
9/30/2010		6.53		0.01			0.29			0.30			(0.02	)		—			(0.02	)
9/30/2009		6.98		0.04			(0.44	)		(0.40	)		(0.05	)		—			(0.05	)
9/30/2008		9.77		0.03			(1.80	)		(1.77	)		(0.05	)		(0.97	)		(1.02	)
9/30/2007		9.42		0.02			1.53			1.55			(0.07	)		(1.13	)		(1.20	)
9/30/2006		9.22		0.05			0.64			0.69			(0.03	)		(0.46	)		(0.49	)
Class B
3/31/2011(g)		6.61		(0.02	)		1.31			1.29			—			—			—
9/30/2010		6.36		(0.04	)		0.29			0.25			—			—			—
9/30/2009		6.80		(0.00	)		(0.44	)		(0.44	)		—			—			—
9/30/2008		9.56		(0.03	)		(1.76	)		(1.79	)		—			(0.97	)		(0.97	)
9/30/2007		9.25		(0.05	)		1.50			1.45			(0.01	)		(1.13	)		(1.14	)
9/30/2006		9.10		(0.02	)		0.63			0.61			—			(0.46	)		(0.46	)
Class C
3/31/2011(g)		6.55		(0.02	)		1.29			1.27			—			—			—
9/30/2010		6.30		(0.04	)		0.29			0.25			—			—			—
9/30/2009		6.76		(0.00	)		(0.44	)		(0.44	)		(0.02	)		—			(0.02	)
9/30/2008		9.52		(0.03	)		(1.76	)		(1.79	)		—			(0.97	)		(0.97	)
9/30/2007		9.22		(0.05	)		1.50			1.45			(0.02	)		(1.13	)		(1.15	)
9/30/2006		9.08		(0.02	)		0.63			0.61			(0.01	)		(0.46	)		(0.47	)
Class Y
3/31/2011(g)		6.87		0.02			1.35			1.37			(0.03	)		—			(0.03	)
9/30/2010		6.58		0.02			0.31			0.33			(0.04	)		—			(0.04	)
9/30/2009		7.03		0.06			(0.45	)		(0.39	)		(0.06	)		—			(0.06	)
9/30/2008		9.85		0.07			(1.82	)		(1.75	)		(0.10	)		(0.97	)		(1.07	)
9/30/2007		9.49		0.06			1.53			1.59			(0.10	)		(1.13	)		(1.23	)
9/30/2006		9.27		0.09			0.64			0.73			(0.05	)		(0.46	)		(0.51	)

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

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

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

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

9 |


							Ratios to Average Net Asstes:
Net asset value, end of the period		Total return (%) (c)(d)			Net assets, end of the period (000’s)		Net expenses (%) (e)(f)			Gross expenses (%) (f)		Net investment income (loss) (%) (f)			Portfolio turnover rate (%)


$	8.15		19.68		$	2,263		1.25			1.45		0.13			60
	6.81		4.81			2,025		1.20			1.45		0.12			245
	6.53		(5.64	)		1,599		1.25			1.78		0.78			180
	6.98		(20.40	)		736		1.25			1.55		0.38			149
	9.77		17.98			1,198		1.25			1.50		0.22			148
	9.42		7.69			1,331		1.25			1.68		0.56			143

	7.90		19.34			150		2.00			2.19		(0.58	)		60
	6.61		4.09			138		1.94			2.20		(0.61	)		245
	6.36		(6.47	)		168		2.00			2.49		(0.03	)		180
	6.80		(21.01	)		227		2.00			2.30		(0.37	)		149
	9.56		17.11			356		2.00			2.31		(0.51	)		148
	9.25		6.90			331		2.00			2.33		(0.19	)		143

	7.82		19.39			1,666		2.00			2.20		(0.64	)		60
	6.55		3.97			1,247		1.94			2.20		(0.61	)		245
	6.30		(6.41	)		1,460		2.00			2.51		(0.06	)		180
	6.76		(21.10	)		949		2.00			2.30		(0.39	)		149
	9.52		17.17			1,164		2.00			2.29		(0.54	)		148
	9.22		6.92			1,198		2.00			2.37		(0.18	)		143

	8.21		19.96			24,627		1.00			1.18		0.40			60
	6.87		5.08			30,875		0.95	(h)		1.20		0.37			245
	6.58		(5.42	)		26,857		0.85			1.38		1.09			180
	7.03		(20.17	)		23,538		0.85			1.15		0.78			149
	9.85		18.39			27,400		0.85			1.11		0.62			148
	9.49		8.13			23,096		0.85			1.26		0.98			143

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

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

(g)	For the six months ended March 31, 2011 (Unaudited).

(h)	Effective February 1, 2010, the expense limit increased to 1.00% for Class Y shares.

| 10

Notes to Financial Statements

March 31, 2011 (Unaudited)

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

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

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

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

11 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

take into account factors such as securities market activity and/or significant events that occur after the close of the foreign market and before the Fund calculates its net asset value.

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

There were no forward foreign currency contracts held by the Fund during the six months ended March 31, 2011.

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

| 12

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Exchange-traded options have standardized contracts and are settled through a clearing house with fulfillment guaranteed by the credit of the exchange. Therefore, counterparty credit risks to the Fund are limited. Over-the-counter options are subject to the risk that the counterparty is unable or unwilling to meet its obligations under the option. For the six months ended March 31, 2011, the Fund was not party to any over-the-counter options.

f. Federal and Foreign Income Taxes. The Trust treats each Fund as a separate entity for federal income tax purposes. The Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of the Fund’s tax positions for the open tax years as of March 31, 2011 and has concluded that no provisions for income tax are required. The Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Fund. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

g. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as foreign currency transactions. 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, straddle loss deferrals and wash sales. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the year ended September 30, 2010 was as follows:


2010 Distributions Paid From:
Ordinary Income	Long-Term Capital Gains		Total
$185,129	$	—	$	185,129

As of September 30, 2010, the capital loss carryforwards were as follows:


Capital loss carryforward:
Expires September 30, 2017	$	(2,229,424	)
Expires September 30, 2018		(3,119,805	)

Total capital loss carryforward	$	(5,349,229	)

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

13 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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

For the six months ended March 31, 2011, the Fund did not loan 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 Fund. Additionally, in the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

•

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

•

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 the Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available).

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

The following is a summary of the inputs used to value the Fund’s investments as of March 31, 2011, at value:

Asset Valuation Inputs


Description(a)	Level 1		Level 2		Level 3		Total

Common Stocks	$	28,449,168	$	—	$	—	$	28,449,168

Liability Valuation Inputs


Description(a)	Level 1			Level 2		Level 3		Total

Written Options	$	(19,424	)	$	—	$	—	$	(19,424	)

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

The Fund is subject to the risk of unpredictable declines in the value of individual equity securities and periods of below-average performance in individual securities or in the equity market as a whole. The Fund may use purchased put options and written call options

| 14

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

to hedge against a decline in value of an equity security that it owns. The Fund may also write put options to offset the cost of options used for hedging purposes. During the six months ended March 31, 2011, the Fund engaged in purchased put and written call options for hedging purposes and in written put options to offset the cost of options used for hedging purposes.

The following is a summary of derivative instruments for the Fund as of March 31, 2011:


Statement of Assets and Liabilities Caption	Equity Contracts
Liabilities
Options written, at value	$	(19,424	)

Transactions in derivative instruments for the Fund during the six months ended March 31, 2011, was as follows:


Statement of Operations Caption	Equity Contracts
Net Realized Gain (Loss) on:
Investments*	$	(21,494	)
Options written		(106,081	)
Net Change in Unrealized Appreciation (Depreciation) on:
Options written		(1,478	)

*	Represents realized loss for purchased options during the period.

As the Fund values its derivatives at fair value and recognize changes in fair value through the Statement of Operations, they do 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.

Volume of option activity, as a percentage of net assets, for the Fund, based on month-end (for call options)/daily (for put options) market values of equity securities underlying written options, at absolute value, was as follows for the six months ended March 31, 2011:


Disciplined Equity Fund*	Call Options Written		Put Options Purchased		Put Options Written
Average Market Value of Underlying Securities		9.35%		0.12%		0.12%
Highest Market Value of Underlying Securities		16.85%		1.56%		1.56%
Lowest Market Value of Underlying Securities		4.06%		0.00%		0.00%
Market Value of Underlying Securities as of March 31, 2011		4.06%		0.00%		0.00%

*	Market value of underlying securities is determined by multiplying option shares by the price of the option’s underlying security, as determined by the Fund’s Pricing Policies and Procedures.

Market value of underlying securities at the end of the prior period are included in the average market value of underlying securities.

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


	Number of Contracts			Premiums

Outstanding at 9/30/2010		1,156		$	87,891
Options written		2,449			247,192
Options terminated in closing purchase transactions		(2,858	)		(264,958	)
Options exercised		(75	)		(4,349	)
Options expired		(504	)		(48,058	)

Outstanding at 3/31/2011		168		$	17,718

5. Purchases and Sales of Securities. For the six months ended March 31, 2011, purchases and sales of securities (excluding short-term investments) were $20,172,024 and $31,890,311, respectively.

15 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

6. Management Fees and Other Transactions with Affiliates.

a. Management Fees. Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to the Fund. Under the terms of the management agreement, the Fund pays a management fee at the annual rate of 0.50% of average daily net assets, calculated daily and payable monthly.

Loomis Sayles has given a binding undertaking to the Fund to waive management fees and/or reimburse certain expenses to limit the Fund’s operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes and extraordinary expenses. This undertaking is in effect until January 31, 2012 and is reevaluated on an annual basis. Management fees payable, as reflected on the Statement of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to this undertaking.

For the six months ended March 31, 2011, the expense limits as a percentage of average daily net assets under the expense limitation agreement were as follows:


Expense Limit as a Percentage of Average Daily Net Assets
Class A	Class B		Class C		Class Y
1.25%		2.00%		2.00%		1.00%

For the six months ended March 31, 2011, the management fees and waivers of management fees for the Fund were as follows:


Gross Management Fees	Waivers of Management Fees¹		Net Management Fees		Percentage of Average Daily Net Assets
Gross Management Fees	Waivers of Management Fees¹		Net Management Fees		Gross			Net
$88,863	$	31,667	$	57,196		0.50	%		0.32	%

¹	Management fee waivers are subject to possible recovery until September 30, 2012.

No expenses were recovered during the six months ended March 31, 2011 under the terms of the expense limitation agreement.

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

| 16

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

For the six months ended March 31, 2011, the Fund paid the following service and distribution fees:


Service Fees					Distribution Fees
Class A	Class B		Class C		Class B		Class C
$2,562	$	177	$	1,860	$	531	$	5,582

c. Administrative Fees. Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, the Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion and 0.0350% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the six months ended March 31, 2011, the Fund paid $8,304 in administrative fees to Natixis Advisors.

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

For the six months ended March 31, 2011, the Fund paid $10,066 in sub-transfer agent fees, which are reflected in transfer agent fees and expenses in the Statement of Operations.

e. Commissions. Commissions (including CDSCs) on Fund shares retained by Natixis Distributors during the six months ended March 31, 2011 amounted to $722.

17 |

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

Series, and are normally reflected as Trustees’ fees and expenses in the Statement of Operations. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees on the Statement of Assets and Liabilities.

g. Payments by Affiliates. For the six months ended March 31, 2011, Loomis Sayles reimbursed the Fund $1,234 for losses incurred in connection with a trading error.

7. Line of Credit. The Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participates in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the six months ended March 31, 2011, the Fund had no borrowings under these agreements.

8. Broker Commission Recapture. The 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 Fund under such agreements and are included in realized gains on investments in the Statement of Operations.

For the six months ended March 31, 2011, amounts rebated under these agreements amounted to $6,866.

9. Concentration of Ownership. At March 31, 2011, Loomis Sayles Funded Pension Plan and Trust (“Pension Plan”) and the Loomis Sayles Employees’ Profit Sharing Retirement Plan (“Retirement Plan”) held shares of beneficial interest in the Fund as follows:


Pension Plan	Retirement Plan
779,175		774,386

From time to time, the Fund may have a concentration of several shareholders having a significant percentage of shares outstanding. Investment activities of these shareholders could have material impacts on the Funds. As of March 31, 2011, one shareholder account owned more than 5% of the Fund’s total outstanding shares, representing 5.87% of the Fund’s net assets. Such ownership may be beneficially held by individuals or entities other than the owner of record.

| 18

Notes to Financial Statements (continued)

March 31, 2011 (Unaudited)

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


	Six Months Ended March 31, 2011					Year Ended September 30, 2010
	Shares			Amount		Shares			Amount

Class A
Issued from the sale of shares	118,922		$	922,460		128,879		$	877,104
Issued in connection with the reinvestment of distributions	326			2,486		878			5,881
Redeemed	(138,817	)		(1,044,030	)	(77,642	)		(516,404	)

Net change	(19,569	)	$	(119,084	)	52,115		$	366,581

Class B
Issued from the sale of shares	2,656		$	20,337		307		$	2,003
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(4,538	)		(33,196	)	(5,901	)		(38,901	)

Net change	(1,882	)	$	(12,859	)	(5,594	)	$	(36,898	)

Class C
Issued from the sale of shares	51,751		$	378,561		45,207		$	298,621
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(29,028	)		(214,186	)	(86,665	)		(557,736	)

Net change	22,723		$	164,375		(41,458	)	$	(259,115	)

Class Y
Issued from the sale of shares	287,758		$	2,218,165		904,469		$	6,207,958
Issued in connection with the reinvestment of distributions	15,087			115,567		25,763			173,638
Redeemed	(1,797,589	)		(14,044,776	)	(516,729	)		(3,511,230	)

Net change	(1,494,744	)	$	(11,711,044	)	413,503		$	2,870,366

Increase (decrease) from capital share transactions	(1,493,472	)	$	(11,678,612	)	418,566		$	2,940,934

11. Subsequent Event. On March 11, 2011, the Board of Trustees approved the liquidation and termination of the Fund. It is expected that the sale of the Fund’s assets and the corresponding liquidating distributions to shareholders will be completed on or about May 13, 2011.

19 |

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

Included as part of the Report to Shareholders filed as Item 1 herewith.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Securities Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Trust’s Board of Trustees.

Item 11. Controls and Procedures.

The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

There was no change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.


(a)	(1)	Not applicable.

(a)	(2)	Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith as Exhibits (a)(2)(1) and a(2)(2), respectively.

(a)	(3)	Not applicable.

(b)		Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002 are filed herewith as Exhibit (b).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Loomis Sayles Funds II

By:		/s/ ROBERT J. BLANDING
Name:		Robert J. Blanding
Title:		Chief Executive Officer
Date:		May 20, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.



By:		/s/ ROBERT J. BLANDING
Name:		Robert J. Blanding
Title:		Chief Executive Officer
Date:		May 20, 2011



By:		/s/ MICHAEL C. KARDOK
Name:		Michael C. Kardok
Title:		Treasurer
Date:		May 20, 2011

Loomis Sayles Small Cap Growth Fund Class N (LSSNX) N-CSRSCertified semi-annual shareholder report (management investment company)