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

Loomis Sayles Small Cap Growth Fund Class N (LSSNX) N-CSRCertified 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.

NGAM Distribution, L.P.

399 Boylston Street

Boston, Massachusetts 02116

(Name and address of agent for service)

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

Date of fiscal year end: September 30

Date of reporting period: September 30, 2013

Item 1.

Reports to Stockholders.

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

ANNUAL REPORT

September 30, 2013

LOGO

Loomis Sayles Global Equity and Income Fund

Loomis Sayles Growth Fund

Loomis Sayles Mid Cap Growth Fund

Loomis Sayles Value Fund

TABLE OF CONTENTS

Portfolio Review page 1

Portfolio of Investments page 27

Financial Statements page 55

Notes to Financial Statements page 69

LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND


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

*	Effective April 11, 2013, Warren N. Koontz no longer serves as a portfolio manager of the Fund.

**	Eileen N. Riley, CFA and Lee M. Rosenbaum became portfolio managers of the Fund effective April 11, 2013.

Objective

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

Strategy

Under normal circumstances, invests 80% of its net assets in equity and fixed-income securities of U.S. and foreign issuers, including securities of issuers located in emerging markets

Market Conditions

Developed equity markets rallied during the 12-month period, while fears of rising interest rates hurt many fixed-income markets. In the United States, the S&P 500 Index^® trended higher on the back of rising consumer sentiment. European markets responded well to improving economic conditions despite slowing forecasts for corporate earnings. Although emerging market stocks generally rallied strongly in September 2013, earlier setbacks kept the year-to-date return negative and the 12-month return barely positive as of September 30, 2013.

Comments from the U.S. Federal Reserve (the Fed) and speculation about Fed policy, particularly in the second half of the reporting period, generally drove fixed-income performance for the 12-month period. The Fed introduced volatility and caution into the global fixed-income markets by hinting at a potential winding down of its program of monthly mortgage and Treasury security purchases, known as quantitative easing (QE). The magnitude of the resulting selloff and the overall disruption to risk markets tightened financial conditions significantly. Based on the Fed’s announcement, investors anticipated the Fed would begin tapering QE following the central bank’s September policy meeting. However, the Fed surprised markets and decided to delay the taper while softening its forward guidance. This announcement led to a rally in equities, emerging currencies and fixed-income markets.

1 |

Performance Results

For the 12 months ended September 30, 2013, Class A shares of Loomis Sayles Global Equity and Income Fund returned 10.54% at net asset value. The fund underperformed its primary benchmark, the Morgan Stanley Capital International (MSCI) World Index, which returned 20.90%. The fund outpaced its secondary benchmark, the Citigroup World Government Bond Index, which returned -4.60%.

Explanation of Fund Performance

Weak performance from several out-of-benchmark emerging market equity holdings detracted from return. Although the fund’s fixed-income holdings posted positive results, the effect was not enough to offset the fund’s overall underperformance, as the fund maintains a larger overall weight in equities.

Within the fund’s equity component, an underweight position in the telecommunication sector and stock selection in the materials sector were the main detractors from results. Relative to the fund’s benchmark, stock selection in the energy, healthcare and utilities sectors was positive. However, these gains were largely offset by stock selection in consumer discretionary and financials stocks. We ended the period with overweight positions in the United States and United Kingdom and an underweight position in Japan. Throughout the period we increased exposure to North America and trimmed exposure to emerging markets — a result of our investment process, which continually looks for quality companies that trade at attractive valuations and have the ability to grow their intrinsic value.

In terms of individual stock holdings, Citigroup, a diversified financial services company, was the leading contributor, as positive industry data boosted many financial stocks during the first half of the year. We believe the company remains positioned for targeted growth and stability. In addition, a position in Priceline, an online travel service company, performed well due to rapid expansion in hotel listings and strong growth in its booking.com brand in the United States. A position in Roche, a Swiss pharmaceutical company, also was a top contributor. The company’s stock benefited from positive incremental data presented at the European Society for Medical Oncology (ESMO) as well as growing speculation about a deal with rival Novartis to sell its stake back to Roche.

Outperformance in the fund’s fixed-income component was due primarily to security selection in corporate bonds and favorable currency positioning. In particular, underweight positions in Australia’s dollar and Japan’s yen aided performance. Positioning in the industrials and financials sectors along with government securities also added to return.

Apple, the U.S.-based computer and electronic device maker, was the single largest individual performance detractor for the period. Throughout the summer, Apple faced product- and legal-related headwinds that muted returns overall. However, recent events have turned positive with the launch of the iPhone 5S and iPhone 5C and favorable resolutions to several legal issues. In addition, the fund’s holdings in Canada’s Potash Corporation of Saskatchewan, a producer of potash and other fertilizers, declined after OAO Uralkali, the world’s largest potash producer, ended its relationship with its distribution and trading organization. This change in market dynamics, and the heightened

| 2

LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND

risks to potash pricing, negatively influenced our downside view of the company, and we sold the stock. Elsewhere, U.K.-based mining company Antofagasta also detracted from performance, declining after the company warned copper and gold output would fall due to increased production costs. We sold the position.

In the fixed-income component, the fund’s bias toward U.S. local markets, combined with substantial underweight positions in European and Japanese local markets, detracted from performance. Issue selection within the utility sector and U.S. dollar yield curve (a curve that shows the relationship among bond yields across the maturity spectrum) positioning also detracted from relative performance.

Outlook

In the equity market, we continue to estimate earnings growth in the mid single-digit range this year and next. While margin expansion from recessionary lows has largely played out, the evidence tends to support our view that margins should remain healthy in an environment of moderate but steady gross domestic product growth. Dividends are expected to grow at a double-digit rate in 2013 and likely in 2014. The potential for dividend growth and moderately higher equity prices could provide equity investors with two opportunities over time. While the Fed has refrained from tapering QE for now, investors should prepare for an eventual return to a more normal interest rate environment with a federal funds rate above the zero lower bound. If yields gradually normalize on the basis of improved economic growth with contained inflation, equity investors should be able to adjust to the changing environment and use periodic average corrections as opportunities to add to favored positions.

We also believe the credit cycle is in the early stage of expansion. Bond yields should rise as the global economy continues to improve, but we expect the pace of growth to be inconsistent. Overall, this likely means corporate bonds will continue to outperform Treasuries. We remain comfortable with the fund’s overweight position in the corporate sector and will continue to look for companies with strong fundamentals and favorable risk/reward profiles. Among currencies, we continue to favor the U.S. dollar versus the euro or yen, as we see better relative growth opportunities in the United States. Due to our concerns about slow growth in China, we remain increasingly cautious toward non-Japan Asian currencies. Recent volatility in emerging markets has restored some value, but security selection remains critical in identifying promising long-term positions.

3 |

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

September 30, 2003 through September 30, 2013

LOGO

| 4

LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND

Average Annual Total Returns — September 30, 2013⁵



	1 Year			5 Years			10 Years

Class A (Inception 2/1/06)¹
NAV		10.54	%		11.97	%		9.79	%
With 5.75% Maximum Sales Charge		4.20			10.65			9.14

Class C (Inception 2/1/06)¹
NAV		9.77			11.15			8.98
With CDSC²		8.77			11.15			8.98

Class Y (Inception 5/1/96)
NAV		10.90			12.26			10.07

Comparative Performance
MSCI World Index³		20.90			8.46			8.16
Citigroup World Government Bond Index⁴		-4.60			4.25			4.79

Past performance does not guarantee future results. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. Unlike a fund, an index is not managed and does not reflect fees and expenses.

NOTES TO CHARTS

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

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

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

4	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.

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

5 |

LOOMIS SAYLES GROWTH FUND


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

Objective

Long-term growth of capital

Strategy

Under normal circumstances 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

Market Conditions

Equities generally performed well across the board in the third quarter. The Russell 1000^® Growth Index returned more than 19% through September, surpassing expectations at the start of the year. Slow but steady economic growth in the United States, support from the Federal Reserve and more recently, signs of potentially better growth in Europe and Asia have been important positive catalysts.

Performance Results

For the 12 months ended September 30, 2013, Class A shares of Loomis Sayles Growth Fund returned 25.23% at net asset value. The fund outperformed its benchmark, the Russell 1000^® Growth Index, which returned 19.27%.

Explanation of Fund Performance

Stock selection in the information technology, financials and consumer staples sectors primarily accounted for the fund’s outperformance relative to its benchmark. Stock selection in the healthcare sector and our allocations to the industrials, consumer discretionary and energy sectors were the largest detractors from relative performance.

Facebook, a social networking provider and one of our top ten holdings, was the largest contributor to performance during the period. We first purchased Facebook in 2012 at the company’s initial public offering and have added to the fund’s position on price weakness. Facebook reported strong results, with all key metrics above consensus expectation. The company’s mobile platform was the primary driver of performance. Facebook also continued to show strong user growth, positive engagement trends, product innovation and good financials. In addition, a position in ARM Holdings, the leading supplier of semiconductor processor intellectual property, was a positive contributor to the fund’s return. ARM

| 6

LOOMIS SAYLES GROWTH FUND

Holdings has seen strong growth in its licensing business, which will drive future royalty revenue growth. Key product announcements from Apple and Samsung validated ARM’s next-generation products. Overall revenue increased with expansion in operating margins, driving even faster operating income growth. We believe ARM Holdings continues to trade at a discount to our estimate of intrinsic value based on our long-term fundamental analysis. The fund’s position in SEI Investments, a leading provider of investment management services and fully outsourced processing solutions to global financial institutions, also was a top performer. New sales were up 77% during the period, which is a positive indicator for revenue growth. All business segments reported growth, with new sales activity in the institutional investor category returning to pre-financial-crisis levels. SEI continues to offer an attractive reward-to-risk opportunity based on our estimate of intrinsic value.

A position in online jeweler Blue Nile was the largest performance detractor during the period. Blue Nile’s new management team has been shifting its strategic focus to the fashion-driven jewelry segment and away from its original core business, the diamond engagement market. We sold the fund’s position due to negative structural changes to our initial investment thesis, which resulted in a lower estimate of intrinsic value. A position in energy drink company Monster Beverage was an additional detractor. Monster, along with the entire energy drink industry, faced negative press regarding the safety of energy drinks, especially for children. This negative press spilled into European markets, softening consumption levels and weakening growth in international markets. We continue to believe Monster is well positioned in a fast-growing segment and in the long run should benefit from strong revenue growth and expanding profit margins. A position in Greenhill & Co., a boutique investment bank, also detracted from performance. Greenhill reported lower-than-expected earnings due to continued weakness in merger-and-acquisition activity and higher compensation due to new hires. We believe that Greenhill is thinking long term by taking advantage of ongoing industry weakness to add talent to its team. Although it compounded the company’s overall weak financial performance, we believe the hiring strategy should improve the company’s long-term opportunity.

Outlook

Our investment process is characterized by bottom-up, fundamental research and a long-term time horizon. The nature of the process creates a portfolio with lower turnover, in which sector positioning is derived from our fundamental research. This approach led to overweight positions in the financials, information technology and healthcare sectors and underweight positions in the industrials, consumer discretionary, energy and consumer staples sectors. We remain committed to our long-term investment approach.

7 |

Growth of $10,000 Investment in Class A Shares³

September 30, 2003 through September 30, 2013

LOGO

| 8

LOOMIS SAYLES GROWTH FUND

Average Annual Total Returns — September 30, 2013³



	1 Year			5 Years			10 Years			Since Class N Inception

Class A (Inception 12/31/96)
NAV		25.23	%		10.27	%		6.34	%		—	%
With 5.75% Maximum Sales Charge		17.97			8.95			5.71			—

Class B (Inception 9/12/03)
NAV		24.14			9.47			5.54			—
With CDSC¹		19.14			9.19			5.54			—

Class C (Inception 9/12/03)
NAV		24.21			9.48			5.54			—
With CDSC¹		23.21			9.48			5.54			—

Class N (Inception 2/1/13)
NAV		—			—			—			12.93

Class Y (Inception 5/16/91)
NAV		25.49			10.65			6.69			—

Comparative Performance
Russell 1000^® Growth Index²		19.27			12.07			7.82			14.70

NOTES TO CHARTS

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.

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

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

9 |

LOOMIS SAYLES MID CAP GROWTH FUND


Manager		Symbols
Philip C. Fine, CFA		Class A LAGRX
Loomis, Sayles & Company, L.P.		Class C LSACX
		Class N LSANX
		Class Y LSAIX

Objective

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

Strategy

Normally invests 80% of its net assets 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, but may invest the rest of its assets in companies of any size.

Market Conditions

Stocks started the period on a negative note, as equities sold off immediately following the November 2012 presidential election. Fears of the “fiscal cliff” — a combination of tax increases and spending cuts scheduled to take effect January 1, 2013 — drove the selloff. Ultimately, policymakers agreed to a deal to avert the worst of the fiscal cliff scenario, and stocks generally remained on an upswing for the remainder of the period.

Federal Reserve (Fed) Chairman Ben Bernanke rattled the financial markets in June 2013 by suggesting the Fed might begin to scale back its quantitative easing (QE) as early as September and perhaps terminate the program by mid 2014 should the economy and labor markets continue to improve. In response, investors rotated out of defensive stocks (utilities, healthcare, staples) that led the rally for much of the first half of 2013 and into more cyclical stocks (financials, technology). But, following its September policy meeting, the Fed shocked the financial markets when it said financial conditions were not strong enough to warrant a reduction in stimulus. Stocks rallied on the news the Fed would continue its $85 billion monthly bond purchases. In the final days of the quarter, the rally stalled, as failed federal budget negotiations gave way to an October 1 federal government shutdown.

Performance Results

For the 12 months ended September 30, 2013, Class A shares of Loomis Sayles Mid Cap Growth Fund returned 26.39% at net asset value. The fund underperformed its benchmark, the Russell Midcap^® Growth Index, which returned 27.54%.

Explanation of Fund Performance

The fund slightly lagged its benchmark during the 12-month period, primarily due to weakness from the overall allocation effect (sector weights, cash holdings, options hedges). By contrast, the fund benefited from strong stock selection, particularly within the information technology,

| 10

LOOMIS SAYLES MID CAP GROWTH FUND

energy and industrials sectors. Stock selection within healthcare, and to a lesser extent the consumer discretionary sector, created a drag on relative performance. The consumer discretionary sector made the largest contribution to the fund’s gains, led by positions in Lions Gate Entertainment, a leading independent film and television producer and distributor, and Melco Crown Entertainment (Melco), an operator of casinos in Macau. Lions Gate has posted several strong quarters, and expectations have been building for a strong fourth-quarter release schedule, paced by “Catching Fire,” the next installment of the “Hunger Games” franchise. For Melco, visitation to Macau has been robust, and the company has been gaining market share in the lucrative mass-market segment. It also entered into a joint venture to open a casino in the Philippines.

The technology and energy sectors made the greatest contributions to return relative to the benchmark. LinkedIn, the leading online professional network with more than 200 million members globally, was the largest contributor in technology. The company has increased user engagement by offering new features and functionality. It continued to report strong results, driven primarily by gains in its key talent solutions segment (licenses to corporate accounts). The fund’s strongest contributor in energy was Cabot Oil & Gas, a leading exploration and production company. The firm recently reported another strong quarter, split its stock for a second time, doubled its dividend and increased production guidance for 2013.

Corrections in the fund’s biotech holdings led to underperformance in the healthcare sector. In particular, several of 2012’s big winners, Alexion Pharmaceuticals and Medivation, began to sell off in late 2012. Alexion reported a disappointing third quarter 2012. While earnings modestly exceeded expectations, revenues were only in-line with expectations for the first time in several years. Medivation has transitioned from the clinical to commercial stage with the recent launch of a drug for metastatic prostate cancer that was approved for post-chemotherapy use. After a strong run-up prior to approval, the shares corrected as investors took profits ahead of the launch.

An overweight position in homebuilders triggered underperformance in the consumer discretionary sector. After a strong fourth quarter 2012, the fund’s homebuilders experienced a modest correction during the spring. A more severe selloff began in late June, when mortgage rates increased in response to the Fed’s potential tapering plans. In particular, D.R. Horton, the nation’s largest homebuilder, reported strong margins but disappointing orders. In the information technology sector, a position in Zillow, operator of a leading real estate information website, weighed on performance. The company has been the target of short sellers, who have questioned its business model and reticence to disclose key operating metrics. The firm issued disappointing fourth-quarter guidance with respect to revenues and margins.

The fund held several small derivatives positions for hedging purposes. In the fourth quarter of 2012, we held a Russell 2000 ETF put spread (a long position in an out-of-the-money put combined with a short position in a put with a lower strike price) to hedge against political and fiscal cliff risk during the post-election selloff and puts on the S&P Homebuilders sector ETF to hedge the fund’s large exposure to homebuilders. In the third quarter of 2013, we bought out-of-the-money puts on Medivation as a hedge against the risk of failure in a key clinical trial. We also bought calls on Cobalt International Energy to

11 |

gain investment exposure to several high impact exploratory drilling programs. While the fund’s derivative positions detracted modestly from return, all instruments behaved as expected, with the puts offering downside protection in a rising market. We continue to own the puts on Medivation and the calls on Cobalt.

Outlook

We continue to estimate earnings growth in the mid single-digit range this year and next. While margin expansion from recessionary lows has largely played out, the evidence tends to support our view that margins should remain healthy in an environment of moderate but steady gross domestic product growth. Dividends are expected to grow at a double-digit rate in 2013 and likely in 2014 as well. The potential for dividend growth and moderately higher equity prices could provide equity investors with two opportunities over time. While the Fed has refrained from tapering its monthly bond-buying purchases, known as QE for now, investors should prepare for an eventual return to a more normal interest rate environment with a federal funds rate above the zero lower bound. If yields normalize gradually, on the basis of improved economic growth with contained inflation, equity investors should be able to adjust to the changing environment and use periodic average corrections as opportunities to add to favored positions.

| 12

LOOMIS SAYLES MID CAP GROWTH FUND

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

September 30, 2003 through September 30, 2013

LOGO

13 |

Average Annual Total Returns — September 30, 2013⁴



	1 Year			5 Years			10 Years			Since Class N Inception

Class A (Inception 12/31/96)¹
NAV		26.39	%		11.52	%		10.56	%		—	%
With 5.75% Maximum Sales Charge		19.12			10.21			9.91			—

Class C (Inception 2/2/09)¹
NAV		25.46			10.70			9.71			—
With CDSC²		24.46			10.70			9.71			—

Class N (Inception 2/1/13)
NAV		—			—			—			20.51

Class Y (Inception 12/31/96)
NAV		26.72			11.82			10.84			—

Comparative Performance
Russell Midcap^® Growth Index³		27.54			13.92			10.16			16.97

NOTES TO CHARTS

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

3	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.

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

| 14

LOOMIS SAYLES VALUE FUND


Managers	Symbols
Arthur Barry, CFA	Class A	LSVRX
James L. Carroll, CFA*	Class B	LSVBX
Warren N. Koontz, CFA, CIC	Class C	LSCVX
Loomis, Sayles & Company, L.P.	Class N	LSVNX
	Class Y	LSGIX
	Admin Class	LSAVX

*	Effective September 30, 2013, James L. Carroll no longer serves as a portfolio manager of the Fund.

Objective

Long-term growth of capital and income

Strategy

Under normal conditions invests primarily in equity securities, including common stocks, convertible securities, and warrants.

Market Conditions

The U.S. stock market generated strong performance during the 12-month period. All major stock indexes continued to trend higher, while consumer sentiment improved worldwide. The U.S. equity market has returned to price-to-earnings valuation levels comparable to its 50-year average. Profit margins were healthy, and market consensus expects them to remain so going forward. As the period progressed, U.S. investors returned to equity mutual funds following a long stretch of net redemptions.

Performance Results

For the 12 months ended September 30, 2013, Class A shares of Loomis Sayles Value Fund returned 24.35% at net asset value. The fund outperformed its benchmark, the Russell 1000^® Value Index, which returned 22.30% for the period.

Explanation of Fund Performance

The most significant driver of the fund’s outperformance was stock selection, particularly in the energy, financials, materials, industrials and telecommunication services sectors. An underweight in the utilities sector also boosted performance. Stock selection in the information technology sector was the primary detractor from relative performance, mostly due to owning Apple, the computer and electronic device maker.

State Street and JPMorgan were two of the top three performers for the fund. Strong fee revenues, robust share buybacks and market appreciation inflows have led to solid earnings for State Street Corporation. JPMorgan also recently reported better-than-expected earnings on the back of a larger reserve release and slightly better-than-expected investment

15 |

banking and trading revenue. Ameriprise was a solid performer throughout the period, primarily due to net new inflows and increased client activity. The company also continued to return capital to shareholders through share repurchases and dividends while maintaining a strong financial foundation. All three stocks were overweights relative to the index.

Although this past 12-month period was not Apple’s strongest, the company countered the skeptics with the arrival of the iPhone 5S and as a lower-end model, the 5C, in September. We think sales of these products, plus other potential catalysts, such as additional share buybacks, a dividend commitment and an agreement with China Mobile to sell iPhones, make the stock attractive at this level. In addition, an overweight position in FirstEnergy, a public utility company, weighed on fund performance. Data released in the summer indicated weak demand and excess generation supply will keep power prices low in certain areas for a long time. This led to weak stock performance for large electricity generators, including FirstEnergy. The fund’s exposure to Verizon, a telecommunication company, also detracted from performance. Concerns about discounting and increased competition from wireless peers pressured Verizon stock. Nevertheless, we believe the company remains attractive from a long-term perspective.

Outlook

As always, we will look for individual securities we believe offer attractive return potential by selling below our estimates of intrinsic value. We will seek to enter these stock positions when the downside risk seems limited or manageable.

| 16

LOOMIS SAYLES VALUE FUND

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

September 30, 2003 through September 30, 2013

LOGO

17 |

Average Annual Total Returns — September 30, 2013⁴



	1 Year			5 Years			10 Years			Since Class N Inception

Class A (Inception 6/30/06)¹
NAV		24.35	%		8.71	%		9.21	%		—	%
With 5.75% Maximum Sales Charge		17.21			7.44			8.57			—

Class B (Inception 6/1/07)¹
NAV		23.42			7.91			8.33			—
With CDSC²		18.42			7.61			8.33			—

Class C (Inception 6/1/07)¹
NAV		23.41			7.91			8.34			—
With CDSC²		22.41			7.91			8.34			—

Class N (Inception 2/1/13)
NAV		—			—			—			13.55

Class Y (Inception 5/13/91)
NAV		24.65			9.00			9.52			—

Admin Class (Inception 2/1/10)¹
NAV		24.08			8.45			8.92			—

Comparative Performance
Russell 1000^® Value Index³		22.30			8.86			7.99			12.07

NOTES TO CHARTS

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, which were redesignated as Class Y 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.

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

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

| 18

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.

ADDITIONAL INDEX INFORMATION

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

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

PROXY VOTING INFORMATION

A description of the funds’ proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the funds’ website at ngam.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, 2013 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
800-SEC-0330.

19 |

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 April 1, 2013 through September 30, 2013. 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 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, such as sales charges. Therefore, the second line in the table of each fund is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. If transaction costs were included, total costs would be higher.


LOOMIS SAYLES GLOBAL EQUITY AND INCOME FUND	BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID DURING PERIOD* 4/1/2013 – 9/30/2013
Class A
Actual	$	1,000.00	$	1,045.00	$	6.05
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.15	$	5.97
Class C
Actual	$	1,000.00	$	1,041.40	$	9.88
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.39	$	9.75
Class Y
Actual	$	1,000.00	$	1,046.50	$	4.77
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.41	$	4.71

Expenses are equal to the Fund’s annualized expense ratio: 1.18%, 1.93% and 0.93% for Class A, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

| 20


LOOMIS SAYLES GROWTH FUND	BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID DURING PERIOD* 4/1/2013 – 9/30/2013
Class A
Actual		$1,000.00		$1,108.50		$5.34
Hypothetical (5% return before expenses)		$1,000.00		$1,020.00		$5.11
Class B
Actual		$1,000.00		$1,103.60		$9.28
Hypothetical (5% return before expenses)		$1,000.00		$1,016.24		$8.90
Class C
Actual		$1,000.00		$1,103.80		$9.28
Hypothetical (5% return before expenses)		$1,000.00		$1,016.24		$8.90
Class N
Actual		$1,000.00		$1,108.80		$5.02
Hypothetical (5% return before expenses)		$1,000.00		$1,020.31		$4.81
Class Y
Actual		$1,000.00		$1,110.10		$4.02
Hypothetical (5% return before expenses)		$1,000.00		$1,021.26		$3.85

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.01%, 1.76%, 1.76%, 0.95% and 0.76% for Class A, B, C, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).


LOOMIS SAYLES MID CAP GROWTH FUND	BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID DURING PERIOD* 4/1/2013 – 9/30/2013
Class A
Actual		$1,000.00		$1,161.90		$6.77
Hypothetical (5% return before expenses)		$1,000.00		$1,018.80		$6.33
Class C
Actual		$1,000.00		$1,157.70		$10.82
Hypothetical (5% return before expenses)		$1,000.00		$1,015.04		$10.10
Class N
Actual		$1,000.00		$1,163.80		$5.15
Hypothetical (5% return before expenses)		$1,000.00		$1,020.31		$4.81
Class Y
Actual		$1,000.00		$1,163.40		$5.42
Hypothetical (5% return before expenses)		$1,000.00		$1,020.05		$5.06

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.25%, 2.00%, 0.95% and 1.00% for Class A, C, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

21 |


LOOMIS SAYLES VALUE FUND	BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID DURING PERIOD* 4/1/2013 – 9/30/2013
Class A
Actual	$	1,000.00	$	1,087.50	$	5.02
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.26	$	4.86
Class B
Actual	$	1,000.00	$	1,083.20	$	8.93
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.50	$	8.64
Class C
Actual	$	1,000.00	$	1,083.40	$	8.93
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.50	$	8.64
Class N
Actual	$	1,000.00	$	1,088.70	$	2.98
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.21	$	2.89
Class Y
Actual	$	1,000.00	$	1,088.70	$	3.72
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.51	$	3.60
Admin Class
Actual	$	1,000.00	$	1,086.50	$	6.17
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.15	$	5.97

Expenses are equal to the Fund’s annualized expense ratio: 0.96%, 1.71%, 1.71%, 0.57%, 0.71% and 1.18% for Class A, B, C, N, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

| 22

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

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

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

In addition to the materials requested by the Trustees in connection with their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board that provide detailed information about the Funds’ investment performance and the fees charged to the Funds for advisory and other services. This information generally includes, among other things, an internal performance rating for each Fund based on agreed-upon criteria, graphs showing each Fund’s performance and fee differentials against each Fund’s peer group/category, performance ratings provided by a third-party, total return information for various periods, and third-party performance rankings for various periods comparing a Fund against

23 |

similarly categorized funds. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review and Governance Committee and/or the full Board, and Funds identified as presenting possible performance concerns may be subject to more frequent board presentations and reviews. In addition, each quarter the Trustees are provided with detailed statistical information about each Fund’s portfolio. The Trustees also receive periodic updates between meetings.

The Board most recently approved the continuation of the Agreements at their meeting held in June 2013. The Agreements were continued for a one-year period for the Funds. In considering whether to approve the continuation of the Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

The nature, extent and quality of the services provided to the Funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by the Adviser and its affiliates to the Funds and the resources dedicated to the Funds by the Adviser and its affiliates.

The Trustees considered not only the advisory services provided by the Adviser to the Funds, but also the administrative services provided by NGAM Advisors, L.P. (“NGAM Advisors”) and its affiliates to the Funds. For each Fund, the Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds that offers shareholders the right to exchange shares of one type of fund for shares of another type of fund, and provides a variety of fund and shareholder services.

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

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

With respect to each Fund, the Board concluded that the Fund’s performance or other relevant factors supported the renewal of the Agreement relating to that Fund. In the case of each Fund that had performance that lagged that of a relevant peer group median and/or category median for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Agreements. These factors included one or more of the following: (1) that the underperformance was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Adviser that were reasonable and consistent with the Fund’s investment objective and policies; (2) that the Fund’s more recent performance was competitive when compared to its relevant performance benchmarks and peer group category; and (3) that the Fund’s performance, although lagging in certain recent periods, was stronger over the long term.

| 24

The Trustees also considered the Adviser’s performance and reputation generally, the performance of the fund family generally, and the historical responsiveness of the Adviser to Trustee concerns about performance and the willingness of the Adviser to take steps intended to improve performance.

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

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

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

25 |

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense waivers or caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense waivers or caps for certain funds. Management explained that a number of factors are taken into account in considering the possible implementation of breakpoints or an expense cap for a fund, including, among other things, factors such as a fund’s assets, the projected growth of a fund, projected profitability and a fund’s fees and performance. With respect to economies of scale, the Trustees noted that each of the Funds was subject to an expense cap or waiver. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

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

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

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

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

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

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

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

Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that each of the existing Agreements should be continued through June 30, 2014.

| 26

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund


Shares		Description	Value (†)
	Common Stocks — 67.9% of Net Assets
		Belgium — 1.5%
	177,107	Anheuser-Busch InBev NV	$	17,568,611

		Brazil — 0.6%
	527,700	Mills Estruturas e Servicos de Engenharia S.A.		7,228,702

		Canada — 1.1%
	348,600	CGI Group, Inc., Class A(b)		12,234,251

		Chile — 0.6%
	759,310	S.A.C.I. Falabella		7,242,066

		China — 1.3%
	1,300,000	Hengan International Group Co. Ltd.		15,212,973

		Germany — 3.9%
	183,099	Adidas AG		19,861,052
	109,467	Bayer AG, (Registered)		12,909,535
	77,643	Brenntag AG		12,925,663

				45,696,250

		Japan — 1.2%
	530,700	Asahi Group Holdings Ltd.		13,971,015

		Mexico — 1.3%
	6,550,700	Genomma Lab Internacional S.A. de CV, Class B(b)		14,953,582

		Russia — 0.8%
	240,740	Mail.ru Group Ltd., GDR(c)		9,184,231

		Sweden — 1.3%
	527,029	Atlas Copco AB, Class A		15,439,069

		Switzerland — 2.1%
	90,501	Roche Holding AG		24,423,811

		Thailand — 1.0%
	900,400	Bangkok Bank PCL		5,674,613
	413,700	Siam Cement PCL		5,694,338

				11,368,951

		Turkey — 0.6%
	1,918,691	Turkiye Garanti Bankasi AS		7,568,843

		United Kingdom — 11.1%
	1,887,092	Aberdeen Asset Management PLC		11,557,299
	221,349	British American Tobacco PLC		11,649,440
	347,695	Burberry Group PLC		9,200,427
	732,984	Diageo PLC		23,299,668
	388,891	Hikma Pharmaceuticals PLC		6,543,315
	1,265,491	HSBC Holdings PLC		13,696,859
	5,747,596	Legal & General Group PLC		18,238,010
	438,776	Shire PLC		17,553,094
	721,999	Standard Chartered PLC		17,297,454

				129,035,566

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Shares		Description	Value (†)
		United States — 39.5%
	182,362	ACE Ltd.	$	17,061,789
	228,828	American Express Co.		17,281,091
	39,095	Apple, Inc.		18,638,541
	30,319	AutoZone, Inc.(b)		12,816,751
	350,360	Cabot Oil & Gas Corp.		13,075,435
	466,159	Citigroup, Inc.		22,613,373
	46,194	Core Laboratories NV		7,816,487
	136,771	CVS Caremark Corp.		7,761,754
	177,583	Deere & Co.		14,453,480
	87,118	EOG Resources, Inc.		14,747,335
	180,180	Genesee & Wyoming, Inc., Class A(b)		16,751,335
	103,803	Gilead Sciences, Inc.(b)		6,522,980
	70,542	Goldman Sachs Group, Inc. (The)		11,160,450
	25,701	Google, Inc., Class A(b)		22,511,763
	146,257	Gulfport Energy Corp.(b)		9,410,175
	955	Hawaiian Telcom Holdco, Inc.(b)		25,403
	94,427	Jones Lang LaSalle, Inc.		8,243,477
	358,557	Lowe’s Cos., Inc.		17,070,899
	96,181	M&T Bank Corp.		10,764,577
	119,826	National Fuel Gas Co.		8,239,236
	129,071	National Oilwell Varco, Inc.		10,081,736
	28,883	NewMarket Corp.		8,315,705
	255,842	Noble Energy, Inc.		17,143,972
	140,006	Praxair, Inc.		16,830,121
	73,365	Precision Castparts Corp.		16,671,463
	21,972	priceline.com, Inc.(b)		22,212,593
	120,459	QUALCOMM, Inc.		8,114,118
	181,009	Schlumberger Ltd.		15,993,955
	166,200	Signet Jewelers Ltd.		11,908,230
	402,196	Texas Instruments, Inc.		16,196,433
	122,826	TransDigm Group, Inc.		17,035,966
	152,180	UnitedHealth Group, Inc.		10,897,610
	129,860	Valspar Corp. (The)		8,237,020
	26,818	Vertex Pharmaceuticals, Inc.(b)		2,033,341
	327,736	Wyndham Worldwide Corp.		19,982,064

				458,620,658

		Total Common Stocks (Identified Cost $678,736,713)		789,748,579

Principal Amount (‡)
	Bonds and Notes — 27.8%
	Non-Convertible Bonds — 27.0%
		Argentina — 0.1%
$	170,000	Pan American Energy LLC/Argentine Branch, 7.875%, 5/07/2021, 144A		170,000
	500,000	Transportadora de Gas del Sur S.A., 7.875%, 5/14/2017, 144A		452,500

				622,500

See accompanying notes to financial statements.

| 28

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Australia — 0.4%
$	1,200,000	Macquarie Bank Ltd., 5.000%, 2/22/2017, 144A	$	1,308,720
	500,000	Macquarie Bank Ltd., 6.625%, 4/07/2021, 144A		545,150
	2,185,000	New South Wales Treasury Corp., 6.000%, 2/01/2018, (AUD)(d)		2,241,176
	155,000	Sydney Airport Finance Co., 5.125%, 2/22/2021, 144A		162,930

				4,257,976

		Belgium — 0.1%
	350,000	Anheuser-Busch InBev NV, EMTN, 6.500%, 6/23/2017, (GBP)		661,563

		Brazil — 1.8%
	800,000	Banco do Brasil S.A., 3.875%, 10/10/2022		692,000
	1,100,000	Banco Nacional de Desenvolvimento Economico e Social, 5.750%, 9/26/2023, 144A		1,100,000
	400,000	Banco Santander Brasil S.A., 4.500%, 4/06/2015, 144A		409,000
	600,000	Banco Santander Brasil S.A., 4.625%, 2/13/2017, 144A		618,000
	1,919,970	Banco Votorantim S.A., 6.250%, 5/16/2016, 144A, (BRL)		846,351
	800,000	Braskem Finance Ltd., 5.750%, 4/15/2021, 144A		784,000
	6,600,000	Brazil Letras do Tesouro Nacional, Zero Coupon, 7/01/2016, (BRL)		2,207,345
	693,410(††)	Brazil Notas do Tesouro Nacional, Series B, 6.000%, 8/15/2014, (BRL)		319,518
	554,728(††)	Brazil Notas do Tesouro Nacional, Series B, 6.000%, 5/15/2015, (BRL)		258,184
	1,115(†††)	Brazil Notas do Tesouro Nacional, Series F, 10.000%, 1/01/2021, (BRL)		464,847
	2,250(†††)	Brazil Notas do Tesouro Nacional, Series F, 10.000%, 1/01/2019, (BRL)		953,683
	2,250,000	Brazilian Government International Bond, 10.250%, 1/10/2028, (BRL)		1,012,668
	1,700,000	BRF S.A., 3.950%, 5/22/2023, 144A		1,462,000
	600,000	BRF S.A., 5.875%, 6/06/2022, 144A		597,000
	2,300,000	BRF S.A., 7.750%, 5/22/2018, 144A, (BRL)		822,429
	1,075,000	Caixa Economica Federal, 4.500%, 10/03/2018, 144A		1,065,325
	1,255,000	Cielo S.A./Cielo USA, Inc., 3.750%, 11/16/2022, 144A		1,079,300
	400,000	CSN Resources S.A., 6.500%, 7/21/2020, 144A		399,000
	450,000	Fibria Overseas Finance Ltd., 6.750%, 3/03/2021, 144A		480,150
	800,000	Gerdau Trade, Inc., 5.750%, 1/30/2021, 144A		784,000
	300,000	Itau Unibanco Holding S.A., 6.200%, 12/21/2021, 144A		300,000
	100,000	LPG International, Inc., 7.250%, 12/20/2015		109,970
	185,000	Odebrecht Drilling Norbe VIII/IX Ltd., 6.350%, 6/30/2021, 144A		188,238
	900,000	Odebrecht Offshore Drilling Finance Ltd., 6.750%, 10/01/2022, 144A		922,500
	2,400,000	Oi S.A., 9.750%, 9/15/2016, 144A, (BRL)		948,391
	320,000	Petrobras International Finance Co., 5.375%, 1/27/2021		321,467
	300,000	Petrobras International Finance Co., 6.875%, 1/20/2040		294,703
	800,000	Samarco Mineracao S.A., 4.125%, 11/01/2022, 144A		696,000
	129,000	Telemar Norte Leste S.A., 5.500%, 10/23/2020, 144A		113,520
	536,000	Vale Overseas Ltd., 6.875%, 11/21/2036		543,608

				20,793,197

		Canada — 0.9%
	1,085,000	Air Canada, 7.625%, 10/01/2019, 144A, (CAD)		1,055,980
	1,570,000	Bank of Nova Scotia, 1.375%, 12/18/2017		1,541,205
	650,000	Canadian Government, 1.000%, 8/01/2016, (CAD)		623,995
	2,880,000	Canadian Government, 3.000%, 12/01/2015, (CAD)(d)		2,901,193
	2,695,000	Canadian Government, 4.250%, 6/01/2018, (CAD)(d)		2,900,569

See accompanying notes to financial statements.

29 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Canada — continued
$	875,000	Pacific Rubiales Energy Corp., 5.125%, 3/28/2023, 144A	$	784,219
	100,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		106,734
	600,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)		636,942

				10,550,837

		Chile — 0.4%
	1,450,000	Banco de Credito e Inversiones, 3.000%, 9/13/2017, 144A		1,439,869
	850,000,000	Banco Santander Chile, 6.500%, 9/22/2020, 144A, (CLP)		1,662,952
	200,000	Celulosa Arauco y Constitucion S.A., 4.750%, 1/11/2022		194,294
	1,000,000	Corp Nacional del Cobre de Chile, 4.500%, 8/13/2023, 144A		1,008,103
	250,000	E.CL S.A., 5.625%, 1/15/2021, 144A		255,482
	800,000	Inversiones CMPC S.A., 4.375%, 5/15/2023, 144A		743,778

				5,304,478

		China — 0.3%
	800,000	Baidu, Inc., 2.250%, 11/28/2017		786,874
	700,000	Baidu, Inc., 3.250%, 8/06/2018		699,681
	400,000	China Resources Gas Group Ltd., 4.500%, 4/05/2022, 144A		396,276
	1,200,000	CNOOC Finance 2013 Ltd., 3.000%, 5/09/2023		1,078,568
	1,000,000	Parkson Retail Group Ltd., 4.500%, 5/03/2018		920,000

				3,881,399

		Colombia — 0.4%
	400,000	Banco Davivienda S.A., 5.875%, 7/09/2022, 144A		380,000
	555,000	Colombia Telecomunicaciones S.A., E.S.P., 5.375%, 9/27/2022, 144A		510,600
	1,180,000	Ecopetrol S.A., 5.875%, 9/18/2023		1,227,200
	1,265,000,000	Emgesa S.A. E.S.P., 8.750%, 1/25/2021, 144A, (COP)		704,669
	2,140,000,000	Empresas Publicas de Medellin E.S.P., 8.375%, 2/01/2021, 144A, (COP)		1,169,299
	200,000,000	Republic of Colombia, 7.750%, 4/14/2021, (COP)		118,576
	40,000	Republic of Colombia, 8.125%, 5/21/2024		51,650

				4,161,994

		Costa Rica — 0.1%
	600,000	Costa Rica Government International Bond, 4.250%, 1/26/2023, 144A		537,000
	800,000	Costa Rica Government International Bond, 4.375%, 4/30/2025, 144A		696,000

				1,233,000

		Czech Republic — 0.0%
	400,000	CEZ AS, 4.250%, 4/03/2022, 144A		399,600

		Finland — 0.2%
	1,435,000	Finland Government Bond, 1.500%, 4/15/2023, 144A, (EUR)		1,855,922

		France — 0.0%
	200,000	AXA S.A., 7.125%, 12/15/2020, (GBP)		382,348

		Hong Kong — 0.1%
	400,000	Hutchison Whampoa International 11 Ltd., 3.500%, 1/13/2017, 144A		417,774
	400,000	Noble Group Ltd., 6.750%, 1/29/2020, 144A		412,000

				829,774

See accompanying notes to financial statements.

| 30

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Hungary — 0.0%
$	200,000	Hungary Government International Bond, 6.375%, 3/29/2021	$	212,750

		Iceland — 0.1%
	1,000,000	Republic of Iceland, 5.875%, 5/11/2022, 144A		1,027,500

		India — 0.2%
	200,000	Canara Bank Ltd., (fixed rate to 11/28/2016, variable rate thereafter), 6.365%, 11/28/2021		186,600
	1,400,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		1,295,000
	700,000	State Bank of India/London, 4.125%, 8/01/2017, 144A		694,719

				2,176,319

		Indonesia — 0.4%
	200,000	Adaro Indonesia PT, 7.625%, 10/22/2019, 144A		208,400
	800,000	Gajah Tunggal Tbk PT, 7.750%, 2/06/2018, 144A		772,000
	3,500,000,000	Indonesia Government International Bond, 9.500%, 7/15/2023, (IDR)		317,326
	781,000,000	Indonesia Government International Bond, 11.500%, 9/15/2019, (IDR)		77,572
	12,100,000,000	Indonesia Treasury Bond, 6.125%, 5/15/2028, (IDR)		821,329
	2,800,000	Pertamina Persero PT, 4.300%, 5/20/2023, 144A(d)		2,394,000

				4,590,627

		Ireland — 0.0%
	100,000	WPP PLC, 6.000%, 4/04/2017, (GBP)		182,600

		Israel — 0.1%
	1,580,000	Teva Pharmaceutical Finance Co. BV, 2.950%, 12/18/2022		1,463,916

		Italy — 0.5%
	500,000	Italy Buoni Poliennali Del Tesoro, 4.000%, 2/01/2037, (EUR)		598,271
	2,860,000	Italy Buoni Poliennali Del Tesoro, 4.500%, 8/01/2018, (EUR)(d)		4,076,539
	400,000	Italy Buoni Poliennali Del Tesoro, 5.000%, 3/01/2022, (EUR)		571,606
	125,000	Telecom Italia Capital S.A., 6.000%, 9/30/2034		102,807
	10,000	Telecom Italia Capital S.A., 6.375%, 11/15/2033		8,589
	100,000	Telecom Italia SpA, EMTN, 5.375%, 1/29/2019, (EUR)		137,416

				5,495,228

		Japan — 0.1%
	1,700,000	Softbank Corp., 4.500%, 4/15/2020, 144A		1,633,700

		Korea — 0.8%
	3,700,000	Export-Import Bank of Korea, 3.000%, 5/22/2018, 144A, (NOK)		596,664
	8,000,000	Export-Import Bank of Korea, 4.000%, 11/26/2015, 144A, (PHP)		189,343
	400,000	Hana Bank, 4.000%, 11/03/2016, 144A		424,237
	600,000	Hyundai Capital Services, Inc., 3.500%, 9/13/2017, 144A		623,797
	600,000	Hyundai Steel Co., 4.625%, 4/21/2016, 144A		631,535
	600,000	Industrial Bank of Korea, 2.375%, 7/17/2017, 144A		601,406
	400,000	Kia Motors Corp., 3.625%, 6/14/2016, 144A		418,009
	400,000	Korea Finance Corp., 4.625%, 11/16/2021		422,361
	400,000	Korea National Oil Corp., 3.125%, 4/03/2017, 144A		411,178
	3,784,140,000	Korea Treasury Bond, 2.750%, 9/10/2017, (KRW)(d)		3,483,731
	970,000,000	Korea Treasury Bond, 4.000%, 3/10/2016, (KRW)		926,779

See accompanying notes to financial statements.

31 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Korea — continued
$	250,000	Lotte Shopping Co. Ltd., 3.375%, 5/09/2017, 144A	$	257,138
	140,000	SK Telecom Co. Ltd., 6.625%, 7/20/2027, 144A		167,165
	200,000	Woori Bank, 5.875%, 4/13/2021, 144A		220,109

				9,373,452

		Luxembourg — 0.2%
	400,000	Altice Financing S.A., 7.875%, 12/15/2019, 144A		422,000
	400,000	ArcelorMittal, 7.250%, 3/01/2041		366,000
	400,000	Cosan Luxembourg S.A., 5.000%, 3/14/2023, 144A		360,000
	500,000	INEOS Group Holdings S.A., 6.125%, 8/15/2018, 144A		488,750
	500,000	Millicom International Cellular S.A., 4.750%, 5/22/2020, 144A		465,000
	400,000	VTB Bank OJSC, 6.000%, 4/12/2017, 144A		421,856

				2,523,606

		Malaysia — 0.2%
	1,750,000	Malaysia Government Bond, 3.434%, 8/15/2014, (MYR)		539,264
	6,540,000	Malaysia Government Bond, 4.012%, 9/15/2017, (MYR)		2,038,610

				2,577,874

		Mexico — 1.3%
	7,000,000	America Movil SAB de CV, 3.500%, 2/08/2015, (CNY)		1,144,902
	10,000,000	America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)		715,192
	300,000	Banco Santander Mexico S.A. Institucion de Banca Multiple Grupo Financiero Santander, 4.125%, 11/09/2022, 144A		275,250
	600,000	BBVA Bancomer S.A., 6.750%, 9/30/2022, 144A		621,000
	10,000,000	Grupo Televisa SAB, EMTN, 7.250%, 5/14/2043, (MXN)		644,662
	264,500(††††)	Mexican Fixed Rate Bonds, Series M, 6.500%, 6/10/2021, (MXN)		2,113,529
	186,200(††††)	Mexican Fixed Rate Bonds, Series M, 6.500%, 6/09/2022, (MXN)		1,472,847
	424,200(††††)	Mexican Fixed Rate Bonds, Series M-10, 7.750%, 12/14/2017, (MXN)(d)		3,617,757
	520,000(††††)	Mexican Fixed Rate Bonds, Series M-10, 8.500%, 12/13/2018, (MXN)(d)		4,602,752
	480,000	Petroleos Mexicanos, 3.500%, 7/18/2018		486,000

				15,693,891

		Netherlands — 0.4%
	1,155,000	Bharti Airtel International Netherlands BV, 5.125%, 3/11/2023, 144A		1,033,725
	200,000	Indosat Palapa Co. BV, 7.375%, 7/29/2020, 144A		209,000
	400,000	Listrindo Capital BV, 6.950%, 2/21/2019, 144A		408,000
	500,000	Myriad International Holdings BV, 6.000%, 7/18/2020, 144A		525,000
	850,000	Petrobras Global Finance BV, 3.000%, 1/15/2019		799,357
	1,750,000	Petrobras Global Finance BV, 4.375%, 5/20/2023		1,600,876

				4,575,958

		New Zealand — 0.2%
	2,340,000	New Zealand Government Bond, 5.000%, 3/15/2019, (NZD)		2,022,432

		Norway — 0.4%
	225,000	Eksportfinans ASA, 2.000%, 9/15/2015		219,375
	14,109,000	Norway Government Bond, 2.000%, 5/24/2023, (NOK)		2,184,671
	13,760,000	Norway Government Bond, 4.500%, 5/22/2019, (NOK)(d)		2,542,755

				4,946,801

See accompanying notes to financial statements.

| 32

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Panama — 0.0%
$	300,000	Banco Latinoamericano de Comercio Exterior S.A., 3.750%, 4/04/2017, 144A	$	301,500

		Peru — 0.1%
	1,050,000	Transportadora de Gas del Peru S.A., 4.250%, 4/30/2028, 144A		908,250

		Philippines — 0.2%
	40,000,000	Philippine Government International Bond, 3.900%, 11/26/2022, (PHP)		920,992
	30,000,000	Philippine Government International Bond, 4.950%, 1/15/2021, (PHP)		745,838
	175,000	Philippine Long Distance Telephone Co., EMTN, 8.350%, 3/06/2017		199,938

				1,866,768

		Poland — 0.3%
	6,965,000	Poland Government Bond, 4.000%, 10/25/2023, (PLN)		2,144,690
	2,200,000	Poland Government Bond, 4.750%, 4/25/2017, (PLN)		731,431
	95,000	Poland Government International Bond, 3.000%, 9/23/2014, (CHF)		107,768
	800,000	Poland Government International Bond, 3.000%, 3/17/2023		732,800

				3,716,689

		Romania — 0.1%
	2,650,000	Romania Government Bond, 5.850%, 4/26/2023, (RON)		841,311

		Russia — 0.0%
	200,000	Gazprom OAO Via Gaz Capital S.A., 4.950%, 5/23/2016, 144A		211,000

		Singapore — 0.7%
	2,000,000	DBS Bank Ltd., (fixed rate to 9/21/2017, variable rate thereafter), 3.625%, 9/21/2022, 144A		2,044,958
	950,000	Singapore Government Bond, 2.250%, 6/01/2021, (SGD)		765,713
	2,470,000	Singapore Government Bond, 2.500%, 6/01/2019, (SGD)		2,073,944
	3,100,000	Singapore Government Bond, 3.250%, 9/01/2020, (SGD)(d)		2,677,802
	500,000	TBG Global Pte Ltd., 4.625%, 4/03/2018, 144A		472,500

				8,034,917

		South Africa — 0.2%
	650,000	AngloGold Ashanti Holdings PLC, 5.125%, 8/01/2022		547,928
	285,000	Republic of South Africa, EMTN, 4.500%, 4/05/2016, (EUR)		410,161
	600,000	South Africa Government International Bond, 5.875%, 9/16/2025		630,750
	700,000	Transnet SOC Ltd., 4.000%, 7/26/2022, 144A		617,750

				2,206,589

		Spain — 0.5%
	820,000	Autonomous Community of Madrid Spain, 4.300%, 9/15/2026, 144A, (EUR)		978,561
	1,270,000	Spain Government Bond, 4.200%, 1/31/2037, (EUR)		1,521,612
	645,000	Spain Government Bond, 4.300%, 10/31/2019, (EUR)		910,633
	1,250,000	Spain Government Bond, 5.850%, 1/31/2022, (EUR)		1,896,730

				5,307,536

		Supranationals — 0.5%
	840,000	Central American Bank for Economic Integration, 3.875%, 2/09/2017, 144A		863,516
	1,115,000	Corp Andina de Fomento, 4.375%, 6/15/2022		1,110,768
	3,225,000	European Financial Stability Facility, 1.625%, 7/17/2020, (EUR)		4,303,738

				6,278,022

See accompanying notes to financial statements.

33 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Sweden — 0.3%
$	400,000	Eileme 2 AB, 11.625%, 1/31/2020	$	464,000
	1,000,000	PKO Finance AB, 4.630%, 9/26/2022, 144A		981,750
	9,195,000	Sweden Government Bond, 4.500%, 8/12/2015, 144A, (SEK)		1,518,552
	2,450,000	Sweden Government Bond, 5.000%, 12/01/2020, 144A, (SEK)		453,574

				3,417,876

		Thailand — 0.2%
	950,000	Thai Oil PCL, 3.625%, 1/23/2023, 144A		852,563
	62,435,000	Thailand Government Bond, 3.250%, 6/16/2017, (THB)		1,995,697

				2,848,260

		Turkey — 0.5%
	800,000	Arcelik AS, 5.000%, 4/03/2023, 144A		687,000
	600,000	Export Credit Bank of Turkey, 5.375%, 11/04/2016, 144A		618,000
	1,600,000	Turkey Government International Bond, 3.250%, 3/23/2023		1,380,000
	1,200,000	Turkey Government International Bond, 5.125%, 3/25/2022		1,192,500
	600,000	Turkiye Garanti Bankasi A.S., 4.000%, 9/13/2017, 144A		585,000
	800,000	Turkiye Is Bankasi, 3.875%, 11/07/2017, 144A		767,000
	600,000	Yapi ve Kredi Bankasi Via Unicredit Luxembourg S.A., 5.188%, 10/13/2015, 144A		609,750

				5,839,250

		United Arab Emirates — 0.1%
	600,000	Dubai Electricity & Water Authority, 6.375%, 10/21/2016, 144A		675,750
	200,000	Dubai Electricity & Water Authority, 8.500%, 4/22/2015, 144A		219,500

				895,250

		United Kingdom — 0.5%
	600,000	Anglo American Capital PLC, 2.625%, 9/27/2017, 144A		589,183
	410,000,000	Barclays Bank PLC, EMTN, 3.680%, 8/20/2015, (KRW)		391,705
	250,000	BAT International Finance PLC, 3.250%, 6/07/2022, 144A		244,118
	150,000	British Telecommunications PLC, 5.750%, 12/07/2028, (GBP)		277,915
	60,000	BSKYB Finance UK PLC, 5.750%, 10/20/2017, (GBP)		110,678
	150,000	Imperial Tobacco Finance PLC, EMTN, 6.250%, 12/04/2018, (GBP)		283,035
	400,000	Old Mutual PLC, EMTN, 8.000%, 6/03/2021, (GBP)		688,674
	250,000	Standard Chartered Bank, Series 17, EMTN, 5.875%, 9/26/2017, (EUR)		379,751
	705,000	United Kingdom Treasury, 1.750%, 1/22/2017, (GBP)		1,170,189
	250,000	United Kingdom Treasury, 4.250%, 3/07/2036, (GBP)		459,415
	1,150,000	Vedanta Resources PLC, 6.000%, 1/31/2019, 144A		1,092,500

				5,687,163

		United States — 13.1%
	240,000	AES Corp., 4.875%, 5/15/2023		224,400
	425,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		359,125
	15,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		12,525
	975,000	Alcoa, Inc., 5.900%, 2/01/2027		942,870
	1,325,000	Ally Financial, Inc., 5.500%, 2/15/2017		1,390,541
	257,000	Ally Financial, Inc., 6.750%, 12/01/2014		269,850
	55,000	Ally Financial, Inc., 7.500%, 12/31/2013		55,756

See accompanying notes to financial statements.

| 34

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	129,000	Ally Financial, Inc., 8.000%, 12/31/2018	$	145,125
	1,728,000	Ally Financial, Inc., 8.000%, 11/01/2031		1,944,000
	200,000	American Airlines Pass Through Trust, Series 2013-1, Class A, 4.000%, 1/15/2027, 144A		187,500
	720,000	American International Group, Inc., (fixed rate to 5/15/2038, variable rate thereafter), 8.175%, 5/15/2068		842,760
	14,875	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 7/02/2015(c)		15,135
	925,000	Aviation Capital Group Corp., 6.750%, 4/06/2021, 144A		976,396
	145,000	Avnet, Inc., 6.000%, 9/01/2015		157,175
	1,820,000	Ball Corp., 5.000%, 3/15/2022		1,765,400
	200,000	Bank of America Corp., 5.490%, 3/15/2019		218,245
	500,000	Bank of America Corp., EMTN, 4.625%, 8/07/2017, (EUR)		749,010
	115,000	Bank of America Corp., MTN, 5.000%, 5/13/2021		123,514
	50,000	Beazer Homes USA, Inc., 7.250%, 2/01/2023		48,000
	15,000	Boston Scientific Corp., 5.125%, 1/12/2017		16,225
	15,000	Boston Scientific Corp., 6.400%, 6/15/2016		16,842
	1,415,000	Cantor Fitzgerald LP, 6.375%, 6/26/2015, 144A		1,464,525
	1,995,000	CenturyLink, Inc., 6.450%, 6/15/2021		1,985,025
	510,000	CenturyLink, Inc., 7.650%, 3/15/2042		453,900
	55,000	CenturyLink, Inc., Series G, 6.875%, 1/15/2028		50,050
	605,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		539,962
	20,000	Chesapeake Energy Corp., 6.625%, 8/15/2020		21,500
	95,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		102,600
	380,000	Chrysler Group LLC/CG Co-Issuer, Inc., 8.250%, 6/15/2021		425,600
	1,470,000	Clear Channel Worldwide Holdings, Inc., 7.625%, 3/15/2020		1,517,775
	155,000	Cleaver-Brooks, Inc., 8.750%, 12/15/2019, 144A		167,400
	1,005,000	Continental Airlines Pass Through Certificates, Series 2012-3, Class C, 6.125%, 4/29/2018		1,022,587
	391,247	Continental Airlines Pass Through Trust, Series 1999-1, Class B, 6.795%, 2/02/2020		406,408
	235,000	Crestview DS Merger Sub II, Inc., 10.000%, 9/01/2021, 144A		242,050
	235,000	Cummins, Inc., 5.650%, 3/01/2098		226,172
	222,770	Delta Air Lines Pass Through Trust, Series 2007-1, Class B, 8.021%, 2/10/2024		241,706
	201,409	Delta Air Lines Pass Through Trust, Series 2007-1, Class C, 8.954%, 8/10/2014		204,430
	42,000	Dillard’s, Inc., 6.625%, 1/15/2018		45,885
	50,000	Dillard’s, Inc., 7.000%, 12/01/2028		50,500
	8,000	Dillard’s, Inc., 7.750%, 7/15/2026		8,680
	310,000	DR Horton, Inc., 4.375%, 9/15/2022		282,100
	4,214,118	Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 11.250% (12.250% PIK), 12/01/2018, 144A(e)		2,781,318
	1,725,000	First Data Corp., 10.625%, 6/15/2021, 144A		1,750,875
	150,000	Foot Locker, Inc., 8.500%, 1/15/2022(c)		164,699
	25,000	Ford Motor Co., 6.375%, 2/01/2029		27,265
	50,000	Ford Motor Co., 6.625%, 2/15/2028		54,044
	2,105,000	Ford Motor Co., 6.625%, 10/01/2028		2,375,337
	40,000	Ford Motor Co., 7.125%, 11/15/2025		46,591

See accompanying notes to financial statements.

35 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	835,000	Ford Motor Co., 7.400%, 11/01/2046	$	999,176
	5,000	Ford Motor Co., 7.500%, 8/01/2026		6,031
	1,000,000	Ford Motor Credit Co. LLC, 5.000%, 5/15/2018		1,095,551
	905,000	Forethought Financial Group, Inc., 8.625%, 4/15/2021, 144A		1,002,920
	28,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016		28,700
	50,000	General Electric Capital Corp., GMTN, 3.100%, 1/09/2023		46,774
	600,000	General Electric Capital Corp., Series A, (fixed rate to 6/15/2022, variable rate thereafter), 7.125%(j)		652,500
	3,435,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		4,191,806
	105,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		131,931
	180,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		227,790
	315,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		435,183
	200,000	Gerdau Holdings, Inc., 7.000%, 1/20/2020, 144A		213,000
	800,000	Goldman Sachs Group, Inc. (The), 3.375%, 2/01/2018, (CAD)		776,234
	2,295,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		2,395,145
	100,000	Goldman Sachs Group, Inc. (The), 7.250%, 4/10/2028, (GBP)		207,822
	3,045,000	Goodyear Tire & Rubber Co. (The), 7.000%, 5/15/2022		3,166,800
	165,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		163,350
	70,000	GS Mortgage Securities Corp. II, Series 2007-GG10, Class AM, 5.993%, 8/10/2045(f)		68,429
	425,000	Halcon Resources Corp., 8.875%, 5/15/2021		435,625
	410,000	Hanover Insurance Group, Inc. (The), 6.375%, 6/15/2021		449,267
	1,000,000	HCA Holdings, Inc., 6.250%, 2/15/2021		1,016,250
	20,000	HCA, Inc., 5.750%, 3/15/2014		20,375
	90,000	HCA, Inc., 6.375%, 1/15/2015		94,950
	225,000	HCA, Inc., 7.050%, 12/01/2027		215,437
	245,000	HCA, Inc., 7.190%, 11/15/2015		267,662
	90,000	HCA, Inc., 7.500%, 12/15/2023		91,800
	820,000	HCA, Inc., 7.500%, 11/06/2033		813,850
	1,500,000	HCA, Inc., 7.690%, 6/15/2025		1,535,625
	395,000	HCA, Inc., 8.360%, 4/15/2024		424,625
	195,000	HCA, Inc., MTN, 7.580%, 9/15/2025		197,925
	75,000	HCA, Inc., MTN, 7.750%, 7/15/2036		73,500
	855,000	Hecla Mining Co., 6.875%, 5/01/2021, 144A		807,975
	585,000	Hercules, Inc., 6.500%, 6/30/2029		520,650
	470,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		517,316
	110,000	Incitec Pivot Finance LLC, 6.000%, 12/10/2019, 144A		120,746
	80,000	International Lease Finance Corp., 5.875%, 4/01/2019		83,289
	1,620,000	International Lease Finance Corp., 6.250%, 5/15/2019		1,701,000
	45,000	iStar Financial, Inc., 3.875%, 7/01/2016		45,113
	145,000	iStar Financial, Inc., 4.875%, 7/01/2018		140,650
	70,000	iStar Financial, Inc., 5.850%, 3/15/2017		72,625
	145,000	iStar Financial, Inc., 6.050%, 4/15/2015		151,163
	200,000	iStar Financial, Inc., 7.125%, 2/15/2018		214,500
	35,000	iStar Financial, Inc., Series B, 5.700%, 3/01/2014		35,525
	5,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		3,925
	48,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		33,480
	5,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		3,350

See accompanying notes to financial statements.

| 36

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	2,995,000	Jack Cooper Holdings Corp., 9.250%, 6/01/2020, 144A	$	3,204,650
	665,000	Jefferies Group LLC, 5.125%, 4/13/2018		713,706
	30,000	Jefferies Group LLC, 5.125%, 1/20/2023		30,236
	1,070,000	Jefferies Group LLC, 6.250%, 1/15/2036		1,026,765
	685,000	Jefferies Group LLC, 6.450%, 6/08/2027		698,700
	1,410,000	Jefferies Group LLC, 6.875%, 4/15/2021		1,563,930
	15,000	K. Hovnanian Enterprises, Inc., 5.000%, 11/01/2021		13,200
	260,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016		268,450
	1,665,000	KB Home, 8.000%, 3/15/2020		1,798,200
	190,000	Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 7.375%, 10/01/2017		198,788
	15,000	Lennar Corp., Series B, 5.500%, 9/01/2014		15,488
	55,000	Lennar Corp., Series B, 6.500%, 4/15/2016		59,400
	135,000	Level 3 Financing, Inc., 7.000%, 6/01/2020		136,350
	1,435,000	Level 3 Financing, Inc., 8.625%, 7/15/2020		1,567,737
	30,000	Level 3 Financing, Inc., 9.375%, 4/01/2019		33,075
	165,000	Masco Corp., 6.500%, 8/15/2032		163,763
	865,000	Masco Corp., 7.750%, 8/01/2029		955,399
	2,700,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		2,780,814
	310,000	Momentive Specialty Chemicals, Inc., 7.875%, 2/15/2023(g)		254,200
	398,000	Momentive Specialty Chemicals, Inc., 8.375%, 4/15/2016(g)		358,200
	1,270,000	Morgan Stanley, 2.125%, 4/25/2018		1,237,803
	230,000	Morgan Stanley, 5.375%, 11/14/2013, (GBP)		373,966
	1,725,000	Morgan Stanley, 5.750%, 1/25/2021		1,914,938
	500,000	Morgan Stanley, GMTN, 7.625%, 3/03/2016, (AUD)		500,200
	2,375,000	Morgan Stanley, MTN, 4.100%, 5/22/2023		2,215,205
	600,000	Morgan Stanley, MTN, 6.250%, 8/09/2026		671,203
	100,000	Morgan Stanley, Series F, MTN, 0.716%, 10/18/2016(f)		98,362
	1,552,000	New Albertson’s, Inc., 7.450%, 8/01/2029		1,245,480
	245,000	New Albertson’s, Inc., 7.750%, 6/15/2026		199,675
	3,605,000	New Albertson’s, Inc., 8.000%, 5/01/2031		2,965,112
	2,110,000	New Albertson’s, Inc., 8.700%, 5/01/2030		1,796,137
	315,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		226,800
	15,000	News America, Inc., 6.400%, 12/15/2035		16,549
	155,000	NGPL PipeCo LLC, 7.768%, 12/15/2037, 144A		126,325
	115,000	Owens Corning, Inc., 6.500%, 12/01/2016		128,359
	535,000	Owens Corning, Inc., 7.000%, 12/01/2036		586,809
	540,000	Pulte Group, Inc., 6.000%, 2/15/2035		464,400
	785,000	Pulte Group, Inc., 6.375%, 5/15/2033		700,612
	220,000	Pulte Group, Inc., 7.875%, 6/15/2032		222,200
	1,335,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,441,800
	650,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		578,500
	400,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		406,000
	60,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		56,700
	560,000	Qwest Corp., 6.875%, 9/15/2033		542,470
	115,000	Qwest Corp., 7.250%, 9/15/2025		128,623
	480,000	R.R. Donnelley & Sons Co., 7.000%, 2/15/2022		482,400
	1,155,000	R.R. Donnelley & Sons Co., 8.250%, 3/15/2019		1,282,050

See accompanying notes to financial statements.

37 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	200,000	Rain CII Carbon LLC/CII Carbon Corp., 8.250%, 1/15/2021, 144A	$	201,000
	500,000	Range Resources Corp., 5.000%, 8/15/2022		483,750
	750,000	Reliance Holdings USA, Inc., 5.400%, 2/14/2022, 144A		751,585
	80,000	Reynolds American, Inc., 6.750%, 6/15/2017		92,432
	400,000	Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) S.A., 9.875%, 8/15/2019		434,000
	655,000	Rockies Express Pipeline LLC, 3.900%, 4/15/2015, 144A		651,725
	855,000	Rockies Express Pipeline LLC, 6.875%, 4/15/2040, 144A		636,924
	1,970,000	Rosetta Resources, Inc., 5.625%, 5/01/2021		1,871,500
	760,000	Shearer’s Foods LLC/Chip Finance Corp., 9.000%, 11/01/2019, 144A		794,200
	915,000	SLM Corp., 5.500%, 1/25/2023		837,761
	1,600(†††††)	SLM Corp., 6.000%, 12/15/2043		32,939
	141,000	SLM Corp., MTN, 3.875%, 9/10/2015		143,820
	40,000	SLM Corp., MTN, 4.625%, 9/25/2017		40,500
	1,130,000	SLM Corp., MTN, 7.250%, 1/25/2022		1,149,775
	10,000	SLM Corp., Series A, MTN, 0.566%, 1/27/2014(f)		9,951
	10,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		9,843
	2,560,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		1,996,800
	595,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		670,862
	330,000	Springleaf Finance Corp., 7.750%, 10/01/2021, 144A		342,375
	130,000	Springleaf Finance Corp., 8.250%, 10/01/2023, 144A		135,200
	400,000	Springleaf Finance Corp., MTN, 5.750%, 9/15/2016		413,000
	300,000	Springleaf Finance Corp., Series I, MTN, 5.400%, 12/01/2015		310,500
	135,000	Springleaf Finance Corp., Series J, MTN, 6.900%, 12/15/2017		141,075
	294,000	Sprint Capital Corp., 6.875%, 11/15/2028		262,395
	420,000	Sprint Capital Corp., 6.900%, 5/01/2019		431,550
	110,000	Sprint Capital Corp., 8.750%, 3/15/2032		111,788
	26,000	Sprint Communications, Inc., 6.000%, 12/01/2016		27,560
	2,910,000	SUPERVALU, Inc., 6.750%, 6/01/2021, 144A		2,764,500
	1,360,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		1,152,600
	820,000	Textron, Inc., 5.950%, 9/21/2021		901,466
	1,431,000	Toys R Us, Inc., 7.375%, 10/15/2018		1,234,237
	1,645,000	U.S. Treasury Note, 0.125%, 12/31/2014		1,644,164
	20,500,000	U.S. Treasury Note, 0.250%, 5/31/2014(d)		20,522,427
	1,995,000	U.S. Treasury Note, 0.250%, 10/31/2014		1,997,338
	6,595,000	U.S. Treasury Note, 0.250%, 2/15/2015(d)		6,599,893
	6,740,000	U.S. Treasury Note, 0.250%, 12/15/2015		6,720,515
	33,418	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		37,448
	630,000	United Continental Holdings, Inc., 6.375%, 6/01/2018		641,025
	295,000	United Rentals North America, Inc., 7.625%, 4/15/2022		320,812
	1,735,000	United States Steel Corp., 6.650%, 6/01/2037		1,418,362
	770,000	United States Steel Corp., 7.500%, 3/15/2022		787,325
	139,748	US Airways Pass Through Trust, Series 2012-1A, Class A, 5.900%, 4/01/2026		146,036
	74,946	US Airways Pass Through Trust, Series 2012-1B, Class B, 8.000%, 4/01/2021		81,691
	530,000	US Airways Pass Through Trust, Series 2012-2A, Class A, 4.625%, 12/03/2026		511,450
	50,000	USG Corp., 6.300%, 11/15/2016		52,875
	230,000	USG Corp., 9.750%, 1/15/2018		266,225

See accompanying notes to financial statements.

| 38

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	525,000	Valeant Pharmaceuticals International, 6.375%, 10/15/2020, 144A	$	546,000
	110,000	Verizon Pennsylvania, Inc., 6.000%, 12/01/2028		107,034
	260,000	Visant Corp., 10.000%, 10/01/2017		241,800
	85,000	Wells Fargo & Co., 4.625%, 11/02/2035, (GBP)		141,966
	100,000	Wells Fargo & Co., EMTN, 3.500%, 9/12/2029, (GBP)		150,288
	60,000	Weyerhaeuser Co., 6.950%, 10/01/2027		69,262
	315,000	Weyerhaeuser Co., 7.375%, 3/15/2032		383,660
	125,000	Xerox Corp., 6.750%, 2/01/2017		142,848
	20,000	Xerox Corp., MTN, 7.200%, 4/01/2016		22,663
	250,000	Zurich Finance USA, Inc., EMTN, (fixed rate to 6/15/2015, variable rate thereafter), 4.500%, 6/15/2025, (EUR)		351,741

				152,408,908

		Total Non-Convertible Bonds (Identified Cost $310,943,075)		314,200,531


	Convertible Bonds — 0.7%
		United States — 0.7%
	350,000	ArvinMeritor, Inc., (Step to Zero Coupon on 2/15/2019), 4.000%, 2/15/2027(h)		319,812
	390,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		383,175
	175,000	Chesapeake Energy Corp., 2.750%, 11/15/2035		180,688
	185,000	Ciena Corp., 3.750%, 10/15/2018, 144A		272,528
	125,000	Ford Motor Co., 4.250%, 11/15/2016		246,953
	280,000	Hologic, Inc., (accretes to principal after 12/15/2013), 2.000%, 12/15/2037(h)		280,350
	465,000	Hologic, Inc., (accretes to principal after 3/01/2018), 2.000%, 3/01/2042(h)		467,325
	1,125,000	Intel Corp., 3.250%, 8/01/2039		1,392,891
	215,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(g)		260,956
	2,200,000	Old Republic International Corp., 3.750%, 3/15/2018		2,600,125
	375,000	Omnicare, Inc., 3.750%, 12/15/2025		796,641
	610,000	Owens-Brockway Glass Container, Inc., 3.000%, 6/01/2015, 144A		630,969
	90,000	Trinity Industries, Inc., 3.875%, 6/01/2036		109,181
	265,000	United States Steel Corp., 2.750%, 4/01/2019		293,322

		Total Convertible Bonds (Identified Cost $6,650,672)		8,234,916


	Municipals — 0.1%
		United States — 0.1%
	415,000	State of Illinois, 5.100%, 6/01/2033		367,952
	130,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046		90,004

		Total Municipals (Identified Cost $447,642)		457,956

		Total Bonds and Notes (Identified Cost $318,041,389)		322,893,403

See accompanying notes to financial statements.

39 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
	Senior Loans — 0.5%
		United States — 0.5%
$	309,225	Apria Healthcare Group I, Term Loan, 6.750%, 4/05/2020(f)	$	311,281
	1,865,625	Fairpoint Communications, Inc., Refi Term Loan, 7.500%, 2/14/2019(f)		1,877,546
	1,065,000	Flying Fortress, Inc., New Term Loan, 3.500%, 6/30/2017(f)		1,062,785
	55,000	Power Team Services LLC, Delayed Draw Term Loan, 3.250%, 5/06/2020(i)		54,106
	433,913	Power Team Services LLC, 1st Lien Term Loan, 4.250%, 5/06/2020(f)		426,862
	120,000	Power Team Services LLC, 2nd Lien Term Loan, 8.250%, 11/06/2020(f)		119,700
	43,093	SuperMedia, Inc., Exit Term Loan, 11.600%, 12/30/2016(f)		33,354
	920,065	Supervalu, Inc., Refi Term Loan B, 5.000%, 3/21/2019(f)		916,615
	343,275	TI Group Automotive Systems LLC, Term Loan B, 5.500%, 3/27/2019(f)		346,495
	814,000	US Airways Group, Inc., Term Loan B1, 4.250%, 5/23/2019(f)		808,188

		Total Senior Loans (Identified Cost $5,951,604)		5,956,932


Shares
	Preferred Stocks — 0.5%
	Convertible Preferred Stocks — 0.4%
		United States — 0.4%
	460	Chesapeake Energy Corp., 5.000%		42,734
	100	Chesapeake Energy Corp., Series A, 5.750% 144A		110,312
	71,820	General Motors Co., Series B, 4.750%		3,601,773
	820	Lucent Technologies Capital Trust I, 7.750%		830,660

		Total Convertible Preferred Stocks (Identified Cost $4,105,300)		4,585,479


	Non-Convertible Preferred Stock — 0.1%
		United States — 0.1%
	682	Ally Financial, Inc., Series G, 7.000% 144A (Identified Cost $145,366)		651,651

		Total Preferred Stocks (Identified Cost $4,250,666)		5,237,130


Principal Amount (‡)
	Short-Term Investments — 3.0%
$	47,529	Repurchase Agreement with State Street Bank and Trust Company, dated 9/30/2013 at 0.000%, to be repurchased at $47,529 on 10/01/2013 collateralized by $55,000 Federal National Mortgage Association, 2.080% due 11/02/2022 valued at $51,105 including accrued interest (Note 2 of Notes to Financial Statements)		47,529
	34,768,851	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $34,768,851 on 10/01/2013 collateralized by $34,450,000 U.S. Treasury Note, 2.625% due 7/31/2014 valued at $35,311,250; $155,000 U.S. Treasury Note, 0.250% due 9/30/2015 valued at $154,806 including accrued interest (Note 2 of Notes to Financial Statements)		34,768,851

See accompanying notes to financial statements.

| 40

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


	Description	Value (†)
Short-Term Investments — continued
	Total Short-Term Investments (Identified Cost $34,816,380)	$	34,816,380


	Total Investments — 99.7% (Identified Cost $1,041,796,752)(a)		1,158,652,424
	Other assets less liabilities — 0.3%		3,813,580

	Net Assets — 100.0%	$	1,162,466,004


(‡)	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 1,000.
(††††)	Amount shown represents units. One unit represents a principal amount of 100.
(†††††)	Amount shown represents units. One unit represents a principal amount of 25.
(a)	Federal Tax Information:
	At September 30, 2013, the net unrealized appreciation on investments based on a cost of $1,043,459,906 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	$	131,403,072
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(16,210,554	)

	Net unrealized appreciation	$	115,192,518


(b)	Non-income producing security.
(c)	Fair valued by the Fund’s investment adviser. At September 30, 2013, the value of these securities amounted to $9,364,065 or 0.8% of net assets.
(d)	All or a portion of this security has been designated to cover the Fund’s obligations under open forward foreign currency contracts.
(e)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities. For the period ended September 30, 2013, the issuer has paid out 100% of the interest payments in-kind.
(f)	Variable rate security. Rate as of September 30, 2013 is disclosed.
(g)	Illiquid security. At September 30, 2013, the value of these securities amounted to $873,356 or 0.1% of net assets.
(h)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(i)	Unfunded loan commitment. Represents a contractual obligation for future funding at the option of the Borrower. The Fund receives a stated coupon rate until the borrower draws on the loan commitment, at which time the rate will become the stated rate in the loan agreement.
(j)	Perpetual bond with no specified maturity date.

144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the value of Rule 144A holdings amounted to $86,567,388 or 7.4% of net assets.

See accompanying notes to financial statements.

41 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)


	GDR			A 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 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
	OJSC			Open Joint-Stock Company
	PIK			Payment-in-Kind
	AUD			Australian Dollar
	BRL			Brazilian Real
	CAD			Canadian Dollar
	CHF			Swiss Franc
	CLP			Chilean Peso
	CNY			Chinese Yuan Renminbi
	COP			Colombian Peso
	EUR			Euro
	GBP			British Pound
	IDR			Indonesian Rupiah
	KRW			South Korean Won
	MXN			Mexican Peso
	MYR			Malaysian Ringgit
	NOK			Norwegian Krone
	NZD			New Zealand Dollar
	PHP			Philippine Peso
	PLN			Polish Zloty
	RON			Romanian Leu
	SEK			Swedish Krona
	SGD			Singapore Dollar
	THB			Thailand Baht

At September 30, 2013, the Fund had the following open forward foreign currency contracts:


Contract to Buy/Sell	Delivery Date		Currency	Units of Currency		Notional Value		Unrealized Appreciation (Depreciation)
Sell¹		12/18/2013	Australian Dollar		2,870,000	$	2,664,091	$	(13,359	)
Sell¹		10/08/2013	Brazilian Real		1,610,000		725,401		(23,355	)
Sell¹		12/05/2013	Canadian Dollar		6,610,000		6,406,861		(131,704	)
Buy²		12/18/2013	Euro		8,050,000		10,892,633		4,203
Buy¹		12/18/2013	Japanese Yen		2,150,000,000		21,883,806		(21,441	)
Buy³		12/20/2013	Malaysian Ringgit		1,250,000		381,582		3,196
Sell²		10/31/2013	New Zealand Dollar		2,505,000		2,076,433		(97,257	)
Buy²		12/16/2013	Philippine Peso		187,000,000		4,294,615		14,459
Buy¹		12/11/2013	South Korean Won		1,488,000,000		1,378,518		32,277
Buy²		12/11/2013	South Korean Won		780,000,000		722,610		16,088
Sell²		12/11/2013	South Korean Won		780,000,000		722,610		(7,604	)
Sell¹		12/11/2013	South Korean Won		1,488,000,000		1,378,518		(14,507	)

Total								$	(239,004	)

See accompanying notes to financial statements.

| 42

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Global Equity and Income Fund – (continued)

At September 30, 2013, the Fund had the following open forward foreign cross currency contracts:

Settlement Date

Deliver/Units of Currency

Receive⁴/Units of Currency

Unrealized
Appreciation
(Depreciation)

12/12/2013

Norwegian Krone

5,600,000

Euro

694,948

11,512

¹ Counterparty is Credit Suisse International.

² Counterparty is Barclays Bank PLC.

³ Counterparty is JP Morgan Chase Bank, N.A.

⁴ Counterparty is Deutsche Bank AG.

Industry Summary at September 30, 2013 (Unaudited)


Treasuries	8.6	%
Pharmaceuticals	6.7
Commercial Banks	4.7
Beverages	4.7
Oil, Gas & Consumable Fuels	4.7
Specialty Retail	3.6
Chemicals	3.2
Banking	3.1
Insurance	3.1
Aerospace & Defense	3.0
Energy Equipment & Services	3.0
Internet Software & Services	2.7
Machinery	2.5
Textiles, Apparel & Luxury Goods	2.5
Capital Markets	2.0
Other Investments, less than 2% each	38.6
Short-Term Investments	3.0

Total Investments	99.7
Other assets less liabilities (including open forward foreign currency contracts)	0.3

Net Assets	100.0	%

Currency Exposure Summary at September 30, 2013 (Unaudited)


United States Dollar	64.2	%
British Pound	11.5
Euro	7.0
Mexican Peso	2.4
Swiss Franc	2.1
Other, less than 2% each	12.5

Total Investments	99.7
Other assets less liabilities (including open forward foreign currency contracts)	0.3

Net Assets	100.0	%

See accompanying notes to financial statements.

43 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Growth Fund


Shares		Description	Value (†)
	Common Stocks — 98.0% of Net Assets
		Air Freight & Logistics — 6.5%
	438,861	Expeditors International of Washington, Inc.	$	19,336,216
	225,558	United Parcel Service, Inc., Class B		20,609,234

				39,945,450

		Beverages — 6.4%
	312,953	Coca-Cola Co. (The)		11,854,660
	18,070	Diageo PLC, Sponsored ADR		2,296,336
	217,941	Monster Beverage Corp.(b)		11,387,417
	276,259	SABMiller PLC, Sponsored ADR		14,011,856

				39,550,269

		Biotechnology — 2.5%
	137,776	Amgen, Inc.		15,422,645

		Capital Markets — 6.6%
	168,267	Franklin Resources, Inc.		8,505,897
	109,853	Greenhill & Co., Inc.		5,479,468
	273,972	Legg Mason, Inc.		9,161,624
	553,584	SEI Investments Co.		17,111,281

				40,258,270

		Communications Equipment — 9.2%
	1,355,339	Cisco Systems, Inc.		31,742,039
	368,554	QUALCOMM, Inc.		24,825,798

				56,567,837

		Consumer Finance — 2.8%
	229,508	American Express Co.		17,332,444

		Energy Equipment & Services — 3.3%
	229,950	Schlumberger Ltd.		20,318,382

		Food Products — 3.5%
	1,435,460	Danone S.A., Sponsored ADR		21,589,318

		Health Care Equipment & Supplies — 6.3%
	191,281	Varian Medical Systems, Inc.(b)		14,294,429
	293,097	Zimmer Holdings, Inc.		24,074,988

				38,369,417

		Household Products — 3.9%
	91,135	Clorox Co. (The)		7,447,552
	220,125	Procter & Gamble Co. (The)		16,639,249

				24,086,801

		Internet & Catalog Retail — 5.9%
	115,370	Amazon.com, Inc.(b)		36,069,277

		Internet Software & Services — 11.0%
	604,804	Facebook, Inc., Class A(b)		30,385,353
	42,278	Google, Inc., Class A(b)		37,031,723

				67,417,076

See accompanying notes to financial statements.

| 44

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Growth Fund – (continued)


Shares		Description	Value (†)
		IT Services — 6.4%
	124,041	Automatic Data Processing, Inc.	$	8,978,087
	157,268	Visa, Inc., Class A		30,053,915

				39,032,002

		Pharmaceuticals — 4.8%
	207,780	Merck & Co., Inc.		9,892,406
	257,718	Novartis AG, ADR		19,769,548

				29,661,954

		Semiconductors & Semiconductor Equipment — 3.8%
	49,646	Altera Corp.		1,844,845
	59,370	Analog Devices, Inc.		2,793,359
	387,018	ARM Holdings PLC, Sponsored ADR		18,623,306

				23,261,510

		Software — 11.2%
	385,724	Autodesk, Inc.(b)		15,880,257
	122,651	FactSet Research Systems, Inc.		13,381,224
	402,167	Microsoft Corp.		13,396,183
	786,095	Oracle Corp.		26,074,771

				68,732,435

		Specialty Retail — 3.9%
	501,623	Lowe’s Cos., Inc.		23,882,271

		Total Common Stocks (Identified Cost $525,337,833)		601,497,358


Principal Amount
	Short-Term Investments — 2.4%
$	14,440,090	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $14,440,090 on 10/01/2013 collateralized by $14,955,000 U.S. Treasury Note, 0.625% due 8/31/2017 valued at $14,730,675 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $14,440,090)		14,440,090


		Total Investments — 100.4% (Identified Cost $539,777,923)(a)		615,937,448
		Other assets less liabilities — (0.4)%		(2,223,032	)

		Net Assets — 100.0%	$	613,714,416

	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2013, the net unrealized appreciation on investments based on a cost of $540,255,943 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	$	77,666,183
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(1,984,678	)

		Net unrealized appreciation	$	75,681,505

See accompanying notes to financial statements.

45 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Growth Fund – (continued)

Industry Summary at September 30, 2013 (Unaudited)


Software	11.2	%
Internet Software & Services	11.0
Communications Equipment	9.2
Capital Markets	6.6
Air Freight & Logistics	6.5
Beverages	6.4
IT Services	6.4
Health Care Equipment & Supplies	6.3
Internet & Catalog Retail	5.9
Pharmaceuticals	4.8
Household Products	3.9
Specialty Retail	3.9
Semiconductors & Semiconductor Equipment	3.8
Food Products	3.5
Energy Equipment & Services	3.3
Consumer Finance	2.8
Biotechnology	2.5
Short-Term Investments	2.4

Total Investments	100.4
Other assets less liabilities	(0.4	)

Net Assets	100.0	%

See accompanying notes to financial statements.

| 46

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Mid Cap Growth Fund


Shares		Description	Value (†)
	Common Stocks — 98.0% of Net Assets
		Aerospace & Defense — 1.3%
	9,827	TransDigm Group, Inc.	$	1,363,005

		Automobiles — 2.4%
	12,930	Tesla Motors, Inc.(b)		2,500,921

		Biotechnology — 7.3%
	33,997	ACADIA Pharmaceuticals, Inc.(b)		933,898
	12,371	Aegerion Pharmaceuticals, Inc.(b)		1,060,318
	17,087	Medivation, Inc.(b)		1,024,195
	11,316	Pharmacyclics, Inc.(b)		1,566,361
	17,926	Puma Biotechnology, Inc.(b)		961,909
	4,323	Regeneron Pharmaceuticals, Inc.(b)		1,352,537
	22,861	TESARO, Inc.(b)		885,635

				7,784,853

		Building Products — 1.6%
	40,347	Fortune Brands Home & Security, Inc.		1,679,646

		Capital Markets — 2.2%
	12,692	Affiliated Managers Group, Inc.(b)		2,318,067

		Chemicals — 2.0%
	19,890	Westlake Chemical Corp.		2,081,687

		Commercial Services & Supplies — 1.5%
	14,134	Stericycle, Inc.(b)		1,631,064

		Diversified Financial Services — 2.8%
	42,316	CBOE Holdings, Inc.		1,913,953
	18,130	MarketAxess Holdings, Inc.		1,088,525

				3,002,478

		Energy Equipment & Services — 2.0%
	25,599	Oceaneering International, Inc.		2,079,663

		Food Products — 3.6%
	30,597	Green Mountain Coffee Roasters, Inc.(b)		2,304,872
	16,268	Hershey Co. (The)		1,504,790

				3,809,662

		Health Care Equipment & Supplies — 2.1%
	37,428	DexCom, Inc.(b)		1,056,592
	32,657	Insulet Corp.(b)		1,183,490

				2,240,082

		Health Care Technology — 1.0%
	9,772	athenahealth, Inc.(b)		1,060,848

		Hotels, Restaurants & Leisure — 5.9%
	3,790	Chipotle Mexican Grill, Inc.(b)		1,624,773
	36,263	Dunkin’ Brands Group, Inc.		1,641,263
	93,396	Melco Crown Entertainment Ltd., Sponsored ADR(b)		2,972,795

				6,238,831

See accompanying notes to financial statements.

47 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Mid Cap Growth Fund – (continued)


Shares		Description	Value (†)
		Household Durables — 1.4%
	22,344	Harman International Industries, Inc.	$	1,479,843

		Internet & Catalog Retail — 4.2%
	8,785	Netflix, Inc.(b)		2,716,410
	22,464	TripAdvisor, Inc.(b)		1,703,670

				4,420,080

		Internet Software & Services — 10.1%
	44,809	Cornerstone OnDemand, Inc.(b)		2,304,975
	12,924	LinkedIn Corp., Class A(b)		3,180,079
	7,999	MercadoLibre, Inc.		1,079,145
	37,044	Pandora Media, Inc.(b)		930,916
	23,946	Trulia, Inc.(b)		1,126,180
	16,612	Yelp, Inc.(b)		1,099,382
	11,340	Zillow, Inc., Class A(b)		956,756

				10,677,433

		Life Sciences Tools & Services — 1.7%
	7,484	Mettler-Toledo International, Inc.(b)		1,796,833

		Machinery — 3.1%
	17,219	Chart Industries, Inc.(b)		2,118,626
	15,819	Proto Labs, Inc.(b)		1,208,413

				3,327,039

		Media — 9.6%
	18,992	Discovery Communications, Inc., Class A(b)		1,603,304
	11,073	Liberty Media Corp., Class A(b)		1,629,392
	114,395	Lions Gate Entertainment Corp.(b)		4,009,545
	33,288	Sinclair Broadcast Group, Inc., Class A		1,115,814
	63,939	Starz, Class A(b)		1,798,604

				10,156,659

		Multiline Retail — 1.7%
	32,538	Dollar Tree, Inc.(b)		1,859,872

		Oil, Gas & Consumable Fuels — 4.5%
	59,334	Cabot Oil & Gas Corp.		2,214,345
	27,024	Diamondback Energy, Inc.(b)		1,152,303
	21,713	Gulfport Energy Corp.(b)		1,397,015

				4,763,663

		Pharmaceuticals — 4.3%
	16,570	Actavis, Inc.(b)		2,386,080
	23,910	Jazz Pharmaceuticals PLC(b)		2,199,003

				4,585,083

		Road & Rail — 1.9%
	18,803	Kansas City Southern		2,056,296

See accompanying notes to financial statements.

| 48

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Mid Cap Growth Fund – (continued)


Shares		Description	Value (†)
		Semiconductors & Semiconductor Equipment — 4.4%
	82,363	NXP Semiconductors NV(b)	$	3,064,727
	34,786	Xilinx, Inc.		1,630,072

				4,694,799

		Software — 7.7%
	18,089	CommVault Systems, Inc.(b)		1,588,757
	8,074	FireEye, Inc.(b)		335,313
	21,320	NetSuite, Inc.(b)		2,301,281
	35,961	ServiceNow, Inc.(b)		1,868,174
	35,348	Splunk, Inc.(b)		2,122,294

				8,215,819

		Specialty Retail — 5.7%
	20,480	Lumber Liquidators Holdings, Inc.(b)		2,184,192
	17,234	O’Reilly Automotive, Inc.(b)		2,198,886
	25,118	Tractor Supply Co.		1,687,176

				6,070,254

		Textiles, Apparel & Luxury Goods — 2.0%
	28,122	Michael Kors Holdings Ltd.(b)		2,095,651

		Total Common Stocks (Identified Cost $78,256,664)		103,990,131


	Purchased Options — 0.2%
		Options on Securities — 0.2%
	153,300	Cobalt International Energy, Inc., Call expiring January 18, 2014 at 32.50		157,133
	17,000	Medivation, Inc., Put expiring December 21, 2013 at 40		26,435

		Total Purchased Options (Identified Cost $389,587)		183,568


Principal Amount
	Short-Term Investments — 3.0%
$	3,238,036	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $3,238,036 on 10/01/2013 collateralized by $3,355,000 U.S. Treasury Note, 0.625% due 8/31/2017 valued at $3,304,675 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $3,238,036)		3,238,036


		Total Investments — 101.2% (Identified Cost $81,884,287)(a)		107,411,735
		Other assets less liabilities — (1.2)%		(1,258,198	)

		Net Assets — 100.0%	$	106,153,537

See accompanying notes to financial statements.

49 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Mid Cap Growth Fund – (continued)



(†)	See Note 2 of Notes to Financial Statements.
(a)	Federal Tax Information:
	At September 30, 2013, the net unrealized appreciation on investments based on a cost of $81,889,244 for federal income tax purposes was as follows:
	Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	25,905,938
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(383,447	)

	Net unrealized appreciation	$	25,522,491


(b)	Non-income producing security.

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

Industry Summary at September 30, 2013 (Unaudited)


Internet Software & Services	10.1	%
Media	9.6
Software	7.7
Biotechnology	7.3
Hotels, Restaurants & Leisure	5.9
Specialty Retail	5.7
Oil, Gas & Consumable Fuels	4.5
Semiconductors & Semiconductor Equipment	4.4
Pharmaceuticals	4.3
Internet & Catalog Retail	4.2
Food Products	3.6
Machinery	3.1
Diversified Financial Services	2.8
Automobiles	2.4
Capital Markets	2.2
Health Care Equipment & Supplies	2.1
Textiles, Apparel & Luxury Goods	2.0
Chemicals	2.0
Energy Equipment & Services	2.0
Other Investments, less than 2% each	12.3
Short-Term Investments	3.0

Total Investments	101.2
Other assets less liabilities	(1.2	)

Net Assets	100.0	%

See accompanying notes to financial statements.

| 50

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Value Fund


Shares		Description	Value (†)
	Common Stocks — 96.4% of Net Assets
		Aerospace & Defense — 2.6%
	270,799	Honeywell International, Inc.	$	22,487,149
	305,907	Northrop Grumman Corp.		29,140,701

				51,627,850

		Automobiles — 1.3%
	706,637	General Motors Co.(b)		25,417,733

		Beverages — 1.4%
	352,331	PepsiCo, Inc.		28,010,314

		Capital Markets — 4.5%
	389,767	Ameriprise Financial, Inc.		35,499,978
	529,447	Legg Mason, Inc.		17,704,708
	540,938	State Street Corp.		35,566,673

				88,771,359

		Chemicals — 1.4%
	456,295	E.I. du Pont de Nemours & Co.		26,720,635

		Commercial Banks — 5.7%
	1,147,455	Fifth Third Bancorp		20,700,088
	399,831	PNC Financial Services Group, Inc. (The)		28,967,756
	496,512	US Bancorp		18,162,409
	1,060,286	Wells Fargo & Co.		43,811,018

				111,641,271

		Communications Equipment — 2.6%
	924,374	Cisco Systems, Inc.		21,648,839
	482,460	Motorola Solutions, Inc.		28,648,475

				50,297,314

		Computers & Peripherals — 2.2%
	43,292	Apple, Inc.		20,639,461
	890,406	EMC Corp.		22,758,777

				43,398,238

		Construction Materials — 1.1%
	409,162	Vulcan Materials Co.		21,198,683

		Consumer Finance — 1.4%
	545,000	Discover Financial Services		27,544,300

		Containers & Packaging — 1.4%
	979,302	Sealed Air Corp.		26,627,221

		Diversified Financial Services — 5.5%
	2,035,272	Bank of America Corp.		28,086,754
	631,545	Citigroup, Inc.		30,636,248
	966,750	JPMorgan Chase & Co.		49,971,307

				108,694,309

		Diversified Telecommunication Services — 1.3%
	528,056	Verizon Communications, Inc.		24,639,093

See accompanying notes to financial statements.

51 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Value Fund – (continued)


Shares		Description	Value (†)
		Electric Utilities — 2.1%
	531,643	FirstEnergy Corp.	$	19,378,387
	272,774	NextEra Energy, Inc.		21,865,564

				41,243,951

		Electrical Equipment — 1.4%
	397,232	Eaton Corp. PLC		27,345,451

		Energy Equipment & Services — 2.3%
	334,436	Schlumberger Ltd.		29,550,765
	351,928	Transocean Ltd.		15,660,796

				45,211,561

		Food & Staples Retailing — 0.9%
	317,932	CVS Caremark Corp.		18,042,641

		Food Products — 1.2%
	756,187	Mondelez International, Inc., Class A		23,759,395

		Health Care Equipment & Supplies — 2.4%
	370,958	Baxter International, Inc.		24,368,231
	387,754	Covidien PLC		23,629,729

				47,997,960

		Health Care Providers & Services — 2.4%
	435,949	HCA Holdings, Inc.		18,636,820
	404,807	UnitedHealth Group, Inc.		28,988,229

				47,625,049

		Household Products — 1.1%
	275,190	Procter & Gamble Co. (The)		20,801,612

		Independent Power Producers & Energy Traders — 1.0%
	995,623	Calpine Corp.(b)		19,344,955

		Industrial Conglomerates — 1.6%
	1,345,685	General Electric Co.		32,148,415

		Insurance — 5.6%
	503,538	American International Group, Inc.		24,487,053
	698,696	MetLife, Inc.		32,803,777
	272,006	Travelers Cos., Inc. (The)		23,057,949
	949,075	Unum Group		28,889,843

				109,238,622

		Internet & Catalog Retail — 1.3%
	1,083,851	Liberty Interactive Corp., Class A(b)		25,437,983

		Internet Software & Services — 1.0%
	548,147	AOL, Inc.(b)		18,954,923

		Machinery — 3.5%
	207,820	Deere & Co.		16,914,470
	236,253	Dover Corp.		21,222,607
	402,978	Illinois Tool Works, Inc.		30,735,132

				68,872,209

See accompanying notes to financial statements.

| 52

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Value Fund – (continued)


Shares			Description	Value (†)
			Media — 6.1%
	333,302		CBS Corp., Class B	$	18,384,938
	629,387		Comcast Corp., Class A		28,416,823
	302,050		DIRECTV(b)		18,047,488
	413,298		Omnicom Group, Inc.		26,219,625
	332,203	��	Viacom, Inc., Class B		27,765,527

					118,834,401

			Multiline Retail — 1.5%
	411,723		Family Dollar Stores, Inc.		29,652,290

			Oil, Gas & Consumable Fuels — 9.9%
	440,998		Chevron Corp.		53,581,257
	425,739		CONSOL Energy, Inc.		14,326,118
	200,135		EOG Resources, Inc.		33,878,853
	392,108		ExxonMobil Corp.		33,736,972
	350,501		Hess Corp.		27,107,747
	464,383		Noble Energy, Inc.		31,118,305

					193,749,252

			Pharmaceuticals — 8.2%
	510,601		Bristol-Myers Squibb Co.		23,630,614
	559,674		Forest Laboratories, Inc.(b)		23,948,451
	877,863		Merck & Co., Inc.		41,795,057
	1,479,658		Pfizer, Inc.		42,480,981
	588,584		Sanofi, ADR		29,800,008

					161,655,111

			REITs – Diversified — 1.3%
	908,017		Weyerhaeuser Co.		25,996,527

			Road & Rail — 1.3%
	325,069		Norfolk Southern Corp.		25,144,087

			Semiconductors & Semiconductor Equipment — 1.5%
	717,762		Texas Instruments, Inc.		28,904,276

			Software — 1.7%
	708,357		Microsoft Corp.		23,595,372
	302,965		Oracle Corp.		10,049,349

					33,644,721

			Specialty Retail — 1.9%
	130,947		AutoNation, Inc.(b)		6,831,505
	635,278		Lowe’s Cos., Inc.		30,245,586

					37,077,091

			Tobacco — 1.4%
	328,325		Philip Morris International, Inc.		28,429,662

			Wireless Telecommunication Services — 1.4%
	786,926		Vodafone Group PLC, Sponsored ADR		27,684,057

			Total Common Stocks (Identified Cost $1,439,469,471)		1,891,384,522

See accompanying notes to financial statements.

53 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Value Fund – (continued)


Principal Amount		Description	Value (†)
	Short-Term Investments — 3.1%
$	61,049,074	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $61,049,074 on 10/01/2013 collateralized by $63,220,000 U.S. Treasury Note, 0.625% due 8/31/2017 valued at $62,271,700 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $61,049,074)	$	61,049,074


		Total Investments — 99.5% (Identified Cost $1,500,518,545)(a)		1,952,433,596
		Other assets less liabilities — 0.5%		9,655,885

		Net Assets — 100.0%	$	1,962,089,481


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2013, the net unrealized appreciation on investments based on a cost of $1,503,422,210 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	$	460,948,868
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(11,937,482	)

		Net unrealized appreciation	$	449,011,386


	(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

Industry Summary at September 30, 2013 (Unaudited)


Oil, Gas & Consumable Fuels	9.9	%
Pharmaceuticals	8.2
Media	6.1
Commercial Banks	5.7
Insurance	5.6
Diversified Financial Services	5.5
Capital Markets	4.5
Machinery	3.5
Aerospace & Defense	2.6
Communications Equipment	2.6
Health Care Equipment & Supplies	2.4
Health Care Providers & Services	2.4
Energy Equipment & Services	2.3
Computers & Peripherals	2.2
Electric Utilities	2.1
Other Investments, less than 2% each	30.8
Short-Term Investments	3.1

Total Investments	99.5
Other Assets and Liabilities	0.5

Net Assets	100.0	%

See accompanying notes to financial statements.

| 54

Statements of Assets and Liabilities

September 30, 2013


	Global Equity and Income Fund		Growth Fund			Mid Cap Growth Fund			Value Fund
ASSETS
Investments at cost	$	1,041,796,752	$	539,777,923		$	81,884,287		$	1,500,518,545
Net unrealized appreciation		116,855,672		76,159,525			25,527,448			451,915,051

Investments at value		1,158,652,424		615,937,448			107,411,735			1,952,433,596
Foreign currency at value (identified cost $7,495,616, $0, $0 and $0)		7,633,692		—			—			—
Receivable for Fund shares sold		2,850,354		1,864,757			218,793			14,087,282
Receivable for securities sold		3,175,254		—			—			—
Dividends and interest receivable		5,783,071		436,959			5,187			2,765,782
Unrealized appreciation on forward foreign currency contracts (Note 2)		81,735		—			—			—
Tax reclaims receivable		240,217		27,539			—			—

TOTAL ASSETS		1,178,416,747		618,266,703			107,635,715			1,969,286,660

LIABILITIES
Payable for securities purchased		13,171,047		3,841,057			1,122,931			—
Payable for Fund shares redeemed		1,475,966		170,908			159,243			5,848,200
Unrealized depreciation on forward foreign currency contracts (Note 2)		309,227		—			—			—
Foreign taxes payable (Note 2)		775		—			—			—
Management fees payable (Note 6)		708,740		244,885			41,677			798,945
Deferred Trustees’ fees (Note 6)		107,551		134,403			92,143			331,407
Administrative fees payable (Note 6)		41,840		21,677			3,822			70,747
Payable to distributor (Note 6d)		11,747		52,697			3,748			44,170
Other accounts payable and accrued expenses		123,850		86,660			58,614			103,710

TOTAL LIABILITIES		15,950,743		4,552,287			1,482,178			7,197,179

NET ASSETS	$	1,162,466,004	$	613,714,416		$	106,153,537		$	1,962,089,481

NET ASSETS CONSIST OF:
Paid-in capital	$	1,025,718,513	$	620,896,470		$	110,369,805		$	1,404,982,697
Accumulated net investment (loss)/Undistributed net investment income		16,224,238		938,277			(497,558	)		16,777,729
Accumulated net realized gain (loss) on investments, options written and foreign currency transactions		3,724,698		(84,279,856	)		(29,246,158	)		88,414,004
Net unrealized appreciation on investments and foreign currency translations		116,798,555		76,159,525			25,527,448			451,915,051

NET ASSETS	$	1,162,466,004	$	613,714,416		$	106,153,537		$	1,962,089,481

See accompanying notes to financial statements.

55 |

Statements of Assets and Liabilities (continued)

September 30, 2013


	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	$	251,210,925	$	50,248,050		$	36,125,308		$	171,327,222

Shares of beneficial interest		13,524,374		6,226,888			991,059			6,694,559

Net asset value and redemption price per share	$	18.57	$	8.07		$	36.45		$	25.59

Offering price per share (100/94.25 of net asset value) (Note 1)	$	19.70	$	8.56		$	38.67		$	27.15

Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	—	$	1,421,612		$	—		$	1,143,115

Shares of beneficial interest		—		188,042			—			44,355

Net asset value and offering price per share	$	—	$	7.56			—		$	25.77

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	340,560,739	$	20,798,400		$	2,535,832		$	15,157,707

Shares of beneficial interest		18,553,936		2,754,778			71,982			598,403

Net asset value and offering price per share	$	18.36	$	7.55		$	35.23		$	25.33

Class N shares:
Net assets	$	—	$	1,129		$	1,205		$	260,642,666

Shares of beneficial interest		—		132			32			10,159,612

Net asset value, offering and redemption price per share	$	—	$	8.56	*	$	37.95	*	$	25.65

Class Y shares:
Net assets	$	570,694,340	$	541,245,225		$	67,491,192		$	1,513,807,016

Shares of beneficial interest		30,555,107		63,169,688			1,779,117			59,011,435

Net asset value, offering and redemption price per share	$	18.68	$	8.57		$	37.94		$	25.65

Admin Class shares:
Net assets	$	—	$	—		$	—		$	11,755

Shares of beneficial interest		—		—			—			461

Net asset value, offering and redemption price per share	$	—	$	—		$	—		$	25.51	*

*	Net asset value calculations reflect fractional share and dollar amounts.

See accompanying notes to financial statements.

| 56

Statements of Operations

For the Year Ended September 30, 2013


	Global Equity and Income Fund			Growth Fund			Mid Cap Growth Fund			Value Fund
INVESTMENT INCOME
Dividends	$	17,930,650	(a)	$	3,749,025		$	976,826	(a)	$	37,615,891
Interest		15,479,353			114			188			2,304
Less net foreign taxes withheld		(693,293	)		(36,033	)		(376	)		(205,517	)

		32,716,710			3,713,106			976,638			37,412,678

Expenses
Management fees (Note 6)		8,172,113			1,257,080			744,404			8,233,449
Service and distribution fees (Note 6)		3,652,543			246,918			112,958			501,424
Administrative fees (Note 6)		481,960			111,232			43,909			728,356
Trustees’ fees and expenses (Note 6)		45,354			34,538			27,198			78,554
Transfer agent fees and expenses (Note 6)		867,352			315,079			214,151			2,282,835
Audit and tax services fees		55,720			43,021			47,712			36,069
Custodian fees and expenses		311,525			24,664			20,494			48,200
Legal fees		14,473			3,170			1,329			21,662
Registration fees		94,577			101,564			67,475			118,172
Shareholder reporting expenses		103,127			31,401			11,503			142,281
Miscellaneous expenses		35,062			13,625			8,840			41,932

Total expenses		13,833,806			2,182,292			1,299,973			12,232,934
Less waiver and/or expense reimbursement (Note 6)		—			(18	)		(194,356	)		—

Net expenses		13,833,806			2,182,274			1,105,617			12,232,934

Net investment income (loss)		18,882,904			1,530,832			(128,979	)		25,179,744

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on:
Investments		31,600,770			4,017,895			12,876,579			103,312,153
Options written		—			—			137,983			—
Foreign currency transactions		41,625			—			—			—
Net change in unrealized appreciation (depreciation) on:
Investments		58,033,005			49,693,475			10,743,661			226,865,373
Foreign currency translations		(29,115	)		—			—			—

Net realized and unrealized gain on investments, options written and foreign currency transactions		89,646,285			53,711,370			23,758,223			330,177,526

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	108,529,189		$	55,242,202		$	23,629,244		$	355,357,270

(a)	Includes non-recurring dividends of $3,319,798 and $592,377 for Global Equity and Income Fund and Mid Cap Growth Fund, respectively.

See accompanying notes to financial statements.

57 |

This Page Intentionally Left Blank

| 58

Statements of Changes In Net Assets


	Global Equity and Income Fund						Growth Fund
	Year Ended September 30, 2013			Year Ended September 30, 2012			Year Ended September 30, 2013			Year Ended September 30, 2012
FROM OPERATIONS:
Net investment income	$	18,882,904		$	14,455,622		$	1,530,832		$	920,515
Net realized gain on investments and foreign currency transactions		31,642,395			26,532,775			4,017,895			4,329,020
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		58,003,890			77,106,896			49,693,475			22,338,515

Net increase in net assets resulting from operations		108,529,189			118,095,293			55,242,202			27,588,050

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(3,564,600	)		(2,072,301	)		(294,078	)		(40,999	)
Class C		(2,862,934	)		(1,277,382	)		(20,215	)		—
Class Y		(9,012,867	)		(4,073,326	)		(1,088,093	)		(290,006	)

Total distributions		(15,440,401	)		(7,423,009	)		(1,402,386	)		(331,005	)

NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)		141,699,087			343,913,074			411,126,304			11,726,064

Net increase in net assets		234,787,875			454,585,358			464,966,120			38,983,109
NET ASSETS
Beginning of the year		927,678,129			473,092,771			148,748,296			109,765,187

End of the year	$	1,162,466,004		$	927,678,129		$	613,714,416		$	148,748,296

UNDISTRIBUTED NET INVESTMENT INCOME	$	16,224,238		$	11,769,372		$	938,277		$	809,831

See accompanying notes to financial statements.

59 |

Statements of Changes In Net Assets (continued)


	Mid Cap Growth Fund						Value Fund
	Year Ended September 30, 2013			Year Ended September 30, 2012			Year Ended September 30, 2013			Year Ended September 30, 2012
FROM OPERATIONS:
Net investment income (loss)	$	(128,979	)	$	(655,071	)	$	25,179,744		$	21,146,564
Net realized gain on investments and options written		13,014,562			3,171,141			103,312,153			44,413,605
Net change in unrealized appreciation (depreciation) on investments		10,743,661			15,354,072			226,865,373			278,326,235

Net increase in net assets resulting from operations		23,629,244			17,870,142			355,357,270			343,886,404

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		—			—			(1,732,857	)		(1,701,635	)
Class B		—			—			(4,549	)		(4,098	)
Class C		—			—			(55,400	)		(35,308	)
Class Y		—			—			(20,425,746	)		(16,240,641	)
Admin Class		—			—			(23	)		(19	)

Total distributions		—			—			(22,218,575	)		(17,981,701	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)		(20,292,180	)		(16,818,326	)		248,645,802			(41,007,267	)

Net increase in net assets		3,337,064			1,051,816			581,784,497			284,897,436
NET ASSETS
Beginning of the year		102,816,473			101,764,657			1,380,304,984			1,095,407,548

End of the year	$	106,153,537		$	102,816,473		$	1,962,089,481		$	1,380,304,984

ACCUMULATED NET INVESTMENT (LOSS)/UNDISTRIBUTED NET INVESTMENT INCOME	$	(497,558	)	$	(660,102	)	$	16,777,729		$	14,397,277

See accompanying notes to financial statements.

| 60

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
9/30/2013	$	17.07	$	0.32	(g)	$	1.45		$	1.77		$	(0.27	)	$	—		$	(0.27	)
9/30/2012		14.24		0.35	(h)		2.71			3.06			(0.23	)		—			(0.23	)
9/30/2011		14.72		0.22			(0.45	)		(0.23	)		(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	)
Class C
9/30/2013		16.90		0.19	(g)		1.45			1.64			(0.18	)		—			(0.18	)
9/30/2012		14.10		0.22	(h)		2.70			2.92			(0.12	)		—			(0.12	)
9/30/2011		14.59		0.10			(0.44	)		(0.34	)		(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	)
Class Y
9/30/2013		17.15		0.37	(g)		1.47			1.84			(0.31	)		—			(0.31	)
9/30/2012		14.31		0.40	(h)		2.71			3.11			(0.27	)		—			(0.27	)
9/30/2011		14.78		0.26			(0.45	)		(0.19	)		(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	)

(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 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, if applicable. Without this waiver/reimbursement, expenses would have been higher.

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

(g)

Includes non-recurring dividends. Without these dividends, net investment income per share would have been $0.27, $0.13 and $0.31 for Class A, Class C and Class Y shares, respectively, total return would have been 10.25%, 9.41% and 10.60% for Class A, Class C and Class Y shares, respectively, and the ratio of net investment income to average net assets would have been 1.51%, 0.76% and 1.76% for Class A, Class C and Class Y shares, respectively.

See accompanying notes to financial statements.

61 |


							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 (%)


$	18.57		10.54	(g)	$	251,211		1.18			1.18			1.82	(g)		58
	17.07		21.75	(h)		216,209		1.21			1.21			2.16	(h)		29
	14.24		(1.67	)		111,589		1.24	(i)		1.24	(i)		1.41			65
	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

	18.36		9.77	(g)		340,561		1.93			1.93			1.07	(g)		58
	16.90		20.83	(h)		251,366		1.96			1.96			1.40	(h)		29
	14.10		(2.42	)		145,369		1.99	(i)		1.99	(i)		0.64			65
	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

	18.68		10.90	(g)		570,694		0.93			0.93			2.07	(g)		58
	17.15		21.96	(h)		460,103		0.96			0.96			2.44	(h)		29
	14.31		(1.42	)		216,136		0.99	(i)		0.99	(i)		1.65			65
	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

(h)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.31, $0.19 and $0.36 for Class A, Class C and Class Y shares, respectively, total return would have been 21.46%, 20.55% and 21.75% for Class A, Class C and Class Y shares, respectively, and the ratio of net investment income to average net assets would have been 1.93%, 1.18% and 2.20% for Class A, Class C and Class Y shares, respectively.

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

(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.

See accompanying notes to financial statements.

| 62

Financial Highlights (continued)

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment income (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
9/30/2013	$	6.50	$	0.04		$	1.59		$	1.63		$	(0.06	)	$	—	$	(0.06	)
9/30/2012		5.24		0.04			1.23			1.27			(0.01	)		—		(0.01	)
9/30/2011		5.14		0.01			0.09			0.10			—			—		—
9/30/2010		4.48		(0.01	)		0.67			0.66			—			—		—
9/30/2009		4.99		(0.01	)		(0.50	)		(0.51	)		—			—		—
Class B
9/30/2013		6.09		(0.01	)		1.48			1.47			—			—		—
9/30/2012		4.94		(0.01	)		1.16			1.15			—			—		—
9/30/2011		4.87		(0.03	)		0.10			0.07			—			—		—
9/30/2010		4.28		(0.05	)		0.64			0.59			—			—		—
9/30/2009		4.81		(0.04	)		(0.49	)		(0.53	)		—			—		—
Class C
9/30/2013		6.09		(0.01	)		1.48			1.47			(0.01	)		—		(0.01	)
9/30/2012		4.94		(0.01	)		1.16			1.15			—			—		—
9/30/2011		4.87		(0.03	)		0.10			0.07			—			—		—
9/30/2010		4.28		(0.05	)		0.64			0.59			—			—		—
9/30/2009		4.81		(0.04	)		(0.49	)		(0.53	)		—			—		—
Class N
9/30/2013*		7.58		0.03			0.95			0.98			—			—		—
Class Y
9/30/2013		6.90		0.05			1.69			1.74			(0.07	)		—		(0.07	)
9/30/2012		5.56		0.06			1.30			1.36			(0.02	)		—		(0.02	)
9/30/2011		5.43		0.03			0.10			0.13			—			—		—
9/30/2010		4.73		(0.00	)		0.70			0.70			—			—		—
9/30/2009		5.24		0.01			(0.52	)		(0.51	)		—			—		—

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

(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, if applicable. Without this waiver/reimbursement, expenses would have been higher.

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

(g)	Effective February 1, 2010, the expense limit increased from 0.85% to 1.00% for Class Y shares.

See accompanying notes to financial statements.

63 |


							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 (%)


$	8.07		25.23		$	50,248		1.03			1.03		0.57			6
	6.50		24.22			33,663		1.07			1.07		0.61			16
	5.24		1.95			26,716		1.14			1.14		0.23			16
	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

	7.56		24.14			1,422		1.78			1.78		(0.14	)		6
	6.09		23.28			1,908		1.82			1.82		(0.12	)		16
	4.94		1.44			2,609		1.89			1.89		(0.54	)		16
	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

	7.55		24.21			20,798		1.78			1.78		(0.20	)		6
	6.09		23.28			10,489		1.82			1.82		(0.13	)		16
	4.94		1.44			10,262		1.89			1.89		(0.53	)		16
	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

	8.56		12.93			1		0.95			3.50		0.60			6

	8.57		25.49			541,245		0.77			0.77		0.68			6
	6.90		24.57			102,688		0.82			0.82		0.87			16
	5.56		2.21			70,177		0.89			0.89		0.49			16
	5.43		15.01			53,299		0.93	(g)		0.95		(0.05	)		163
	4.73		(9.73	)		57,033		0.75			0.75		0.18			191

See accompanying notes to financial statements.

| 64

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)			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*
9/30/2013	$	28.84	$	(0.07	)(f)	$	7.68		$	7.61		$	—	$	—	$	—
9/30/2012		24.40		(0.20	)		4.64			4.44			—		—		—
9/30/2011		23.76		(0.23	)(g)		0.87			0.64			—		—		—
9/30/2010		18.29		(0.09	)(i)		5.56			5.47			—		—		—
9/30/2009		21.12		(0.07	)(j)		(2.76	)		(2.83	)		—		—		—
Class C
9/30/2013		28.08		(0.31	)(f)		7.46			7.15			—		—		—
9/30/2012		23.93		(0.39	)		4.54			4.15			—		—		—
9/30/2011		23.47		(0.45	)(g)		0.91			0.46			—		—		—
9/30/2010		18.20		(0.18	)(i)		5.45			5.27			—		—		—
9/30/2009**		15.13		(0.16	)		3.23			3.07			—		—		—
Class N
9/30/2013***		31.49		(0.07	)(f)		6.53			6.46			—		—		—
Class Y*
9/30/2013		29.94		(0.01	)(f)		8.01			8.00			—		—		—
9/30/2012		25.27		(0.14	)		4.81			4.67			—		—		—
9/30/2011		24.53		(0.17	)(g)		0.91			0.74			—		—		—
9/30/2010		18.84		(0.07	)(i)		5.76			5.69			—		—		—
9/30/2009		21.70		(0.05	)(j)		(2.81	)		(2.86	)		—		—		—

*	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.

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

(a)	Per share net investment income (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, if applicable. Without this waiver/reimbursement, expenses would have been higher.

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

(f)

Includes non-recurring dividends. Without these dividends, net investment income (loss) per share would have been $(0.26), $(0.50), $(0.14) and $(0.20) for Class A, Class C, Class N and Class Y shares, respectively, total return would have been 25.76%, 24.82%, 20.29% and 26.09% for Class A, Class C, Class N and Class Y shares, respectively and the ratio of net investment income (loss) to average net assets would have been (0.85)%, (1.64)%, (0.65)% and (0.62)% for Class A, Class C, Class N and Class Y shares, respectively.

See accompanying notes to financial statements.

65 |



							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 (loss) (%) (e)			Portfolio turnover rate (%)


$	36.45		26.39	(f)	$	36,125		1.25			1.44		(0.23	)(f)		159
	28.84		18.25			43,223		1.25			1.38		(0.72	)		191
	24.40		2.65	(g)		49,177		1.25	(h)		1.32		(0.81	)(g)		204
	23.76		29.91			67,639		1.25			1.46		(0.45	)(i)		191
	18.29		(13.44	)		54,951		1.25			1.52		(0.45	)(j)		292

	35.23		25.46	(f)		2,536		2.00			2.20		(1.01	)(f)		159
	28.08		17.34			2,491		2.00			2.13		(1.47	)		191
	23.93		1.96	(g)		2,182		2.01	(h)		2.08		(1.63	)(g)		204
	23.47		28.96			34		2.00			2.24		(0.89	)(i)		191
	18.20		20.29			1		2.00			2.24		(1.54	)		292

	37.95		20.51	(f)		1		0.95			3.50		(0.31	)(f)		159

	37.94		26.72	(f)		67,491		1.00			1.20		(0.04	)(f)		159
	29.94		18.53			57,103		1.00			1.13		(0.49	)		191
	25.27		2.98	(g)		50,406		1.00	(h)		1.07		(0.58	)(g)		204
	24.53		30.20			33,757		1.00			1.22		(0.34	)(i)		191
	18.84		(13.18	)		27,057		1.00			1.12		(0.27	)(j)		292

(g)

Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.27), $(0.47) and $(0.20) for Class A, Class C and Class Y shares, respectively, total return would have been 2.53%, 1.79% and 2.81% 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)%, (1.68)% and (0.70)% for Class A, Class C and Class Y shares, respectively.

(h)	Includes interest expense from bank overdraft charges of 0.01% for Class C and less than 0.01% for Classes A and Y. Without this expense, the ratio of net expenses for Class C would have been 2.00%.

(i)

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.

(j)

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.

See accompanying notes to financial statements.

| 66

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)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains		Total distributions
VALUE FUND
Class A
9/30/2013	$	20.86	$	0.31		$	4.70		$	5.01		$	(0.28	)	$	—	$	(0.28	)
9/30/2012		16.04		0.27			4.78			5.05			(0.23	)		—		(0.23	)
9/30/2011		16.78		0.20			(0.72	)		(0.52	)		(0.22	)		—		(0.22	)
9/30/2010		16.42		0.27	(f)		0.23			0.50			(0.14	)		—		(0.14	)
9/30/2009		17.93		0.23			(1.53	)		(1.30	)		(0.21	)		—		(0.21	)
Class B
9/30/2013		20.95		0.14			4.75			4.89			(0.07	)		—		(0.07	)
9/30/2012		16.05		0.13			4.81			4.94			(0.04	)		—		(0.04	)
9/30/2011		16.77		0.06			(0.73	)		(0.67	)		(0.05	)		—		(0.05	)
9/30/2010		16.40		0.12	(f)		0.25			0.37			—			—		—
9/30/2009		17.80		0.14			(1.51	)		(1.37	)		(0.03	)		—		(0.03	)
Class C
9/30/2013		20.65		0.13			4.68			4.81			(0.13	)		—		(0.13	)
9/30/2012		15.85		0.13			4.74			4.87			(0.07	)		—		(0.07	)
9/30/2011		16.58		0.06			(0.71	)		(0.65	)		(0.08	)		—		(0.08	)
9/30/2010		16.26		0.14	(f)		0.22			0.36			(0.04	)		—		(0.04	)
9/30/2009		17.79		0.12			(1.51	)		(1.39	)		(0.14	)		—		(0.14	)
Class N
9/30/2013*		22.59		0.25			2.81			3.06			—			—		—
Class Y
9/30/2013		20.91		0.36			4.72			5.08			(0.34	)		—		(0.34	)
9/30/2012		16.08		0.32			4.78			5.10			(0.27	)		—		(0.27	)
9/30/2011		16.82		0.25			(0.73	)		(0.48	)		(0.26	)		—		(0.26	)
9/30/2010		16.47		0.31	(f)		0.23			0.54			(0.19	)		—		(0.19	)
9/30/2009		18.01		0.28			(1.54	)		(1.26	)		(0.28	)		—		(0.28	)
Admin Class
9/30/2013		20.79		0.24			4.71			4.95			(0.23	)		—		(0.23	)
9/30/2012		16.00		0.22			4.77			4.99			(0.20	)		—		(0.20	)
9/30/2011		16.74		0.17			(0.73	)		(0.56	)		(0.18	)		—		(0.18	)
9/30/2010**		16.72		0.18	(f)		(0.16	)		0.02			—			—		—

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

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

(a)	Per share net investment income (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 B and Class C shares are not reflected in total return calculations. Periods less than one year, if applicable, are not annualized.

See accompanying notes to financial statements.

67 |



						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 (%)


$25.59		24.35		$	171,327		0.97		0.97		1.31			24
20.86		31.71			129,572		0.98		0.98		1.45			25
16.04		(3.28	)		126,789		0.98		0.98		1.09			29
16.78		3.03			130,922		0.96		0.96		1.58	(f)		54
16.42		(6.97	)		120,915		1.06		1.06		1.67			47

25.77		23.42			1,143		1.72		1.72		0.59			24
20.95		30.79			1,534		1.73		1.73		0.71			25
16.05		(4.05	)		2,037		1.73		1.73		0.32			29
16.77		2.26			3,299		1.70		1.70		0.72	(f)		54
16.40		(7.62	)		5,167		1.81		1.81		1.03			47

25.33		23.41			15,158		1.72		1.72		0.55			24
20.65		30.78			9,104		1.73		1.73		0.70			25
15.85		(4.00	)		8,996		1.73		1.73		0.33			29
16.58		2.20			10,226		1.71		1.71		0.81	(f)		54
16.26		(7.60	)		10,011		1.81		1.81		0.89			47

25.65		13.55			260,643		0.57		0.57		1.50			24

25.65		24.65			1,513,807		0.72		0.72		1.56			24
20.91		32.05			1,240,093		0.73		0.73		1.68			25
16.08		(3.05	)		957,584		0.74		0.74		1.34			29
16.82		3.28			788,937		0.71		0.71		1.86	(f)		54
16.47		(6.66	)		574,439		0.66		0.66		1.97			47

25.51		24.08			12		1.19		1.19		1.01			24
20.79		31.43			2		1.24		1.24		1.17			25
16.00		(3.48	)		1		1.17		1.17		0.90			29
16.74		0.12			1		1.29		1.29		1.59	(f)		54

(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, if applicable. Without this waiver/reimbursement, expenses would have been higher.

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

(f)

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.

See accompanying notes to financial statements.

| 68

Notes to Financial Statements

September 30, 2013

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

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

Loomis Sayles Growth Fund (the “Growth Fund”)

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

Loomis Sayles Value Fund (the “Value Fund”)

Each Fund is a diversified investment company.

Each Fund offers Class A, Class C and Class Y shares. Effective February 1, 2013, Growth Fund, Mid Cap Growth Fund and Value Fund began offering Class N 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 N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are primarily intended for employer-sponsored retirement plans. Class Y shares are intended for institutional investors with a minimum initial investment of $100,000, though some categories of investors are exempted from the minimum investment amount as outlined in the Funds’ prospectus. Admin Class shares do not pay a front-end sales charge or a CDSC, but do pay a Rule 12b-1 fee. Class N and Admin Class shares are offered exclusively through intermediaries.

69 |

Notes to Financial Statements (continued)

September 30, 2013

class (including the Rule 12b-1 service and distribution fees and transfer agent fees for Class N). In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of 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 year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.

a. Valuation. 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 independent pricing services recommended by the investment adviser and approved by the Board of Trustees. Such independent 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) and unlisted equity securities are generally valued on the basis of evaluated bids furnished to the Fund by an independent pricing service, recommended by the investment adviser and approved by the Board of Trustees, which 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. Senior loans are priced at bid prices supplied by an independent pricing service, if available. Broker-dealer bid prices may also be used to value debt and equity securities and senior loans where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Forward foreign currency contracts are valued utilizing interpolated 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. Investments in other open-end investment companies are valued at their net asset value each day. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily

| 70

Notes to Financial Statements (continued)

September 30, 2013

available are valued at fair value as determined in good faith by the Funds’ investment adviser under the general supervision of the Board of Trustees.

The Funds may hold securities traded in foreign markets. Foreign securities are valued at the closing market price in the foreign market. However, if events occurring after the close of the foreign market (but before the close of regular trading on the New York Stock Exchange) are believed to materially affect the value of those securities, such securities are fair valued pursuant to procedures approved by the Board of Trustees. When fair valuing securities, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities market activity and/or significant events that occur after the close of the foreign market and before the Funds calculate their net asset values. As of September 30, 2013, approximately 25% of the market value of Global Equity and Income Fund’s investments was fair valued pursuant to procedures approved by the Board of Trustees as events occurring after the close of the foreign market were believed to materially affect the value of those securities. Additionally, multiple securities held by the Fund for which market quotations were not readily available as of September 30, 2013, were fair valued pursuant to procedures approved by the Board of Trustees, amounting to 0.8% of net assets.

b. Investment Transactions and Related Investment Income. Investment transactions are accounted for on a trade date plus one day 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. 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.

71 |

Notes to Financial Statements (continued)

September 30, 2013

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

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 are added to the cost or deducted from the proceeds on the underlying instrument to determine the realized gain or loss. If the Fund enters into a closing sale transaction, the difference between the premium paid and the proceeds of the closing sale transaction is treated as a 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 are deducted from the cost or added to the proceeds on the underlying instrument to determine the realized gain or loss. If the Fund enters into a closing purchase

| 72

Notes to Financial Statements (continued)

September 30, 2013

transaction, the difference between the net premium received and any amount paid on effecting a closing purchase transaction, including commissions, is treated as a realized gain or, if the net premium received is less than the amount paid, as a realized loss. The Fund, as writer of a written option, bears the risk of an unfavorable change in the market value of the instrument underlying the written option.

Exchange-traded options contracts are standardized and are settled through a clearing house with fulfillment supported by the credit of the exchange. Therefore, counterparty credit risks to the Funds are reduced. 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 year ended September 30, 2013, the Funds were 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. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of September 30, 2013 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

A Fund may be subject to foreign withholding taxes on investment income and taxes on capital gains on investments that are accrued and paid based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign withholding taxes on dividend and interest income are reflected on the Statements of Operations as a reduction of investment income, net of amounts eligible to be reclaimed. Dividends and interest receivable on the Statements of Assets and Liabilities are net of foreign withholding taxes. Foreign withholding taxes eligible to be reclaimed are reflected on the Statements of Assets and Liabilities as tax reclaims receivable. Capital gains taxes paid are included in net realized gain (loss) on investments in the Statements of Operations. Accrued but unpaid capital gains taxes are reflected as foreign taxes payable on the Statements of Assets and Liabilities, if applicable, and reduce unrealized gains on investments. In the event that realized gains on investments are subsequently offset by realized losses, taxes paid on realized gains may be returned to a Fund. Such amounts, if applicable, are reflected as foreign tax rebates receivable on the Statements of Assets and Liabilities and are recorded as a realized gain when received.

73 |

Notes to Financial Statements (continued)

September 30, 2013

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, foreign currency transactions, paydown gains and losses, contingent payment debt instruments, return of capital and capital gain distributions received, defaulted bonds 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 deferred Trustees’ fees, forward foreign currency contract mark to market, wash sales, premium amortization, contingent payment debt instruments, trust preferred securities and return of capital distributions received. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2013 and 2012 was as follows:


	2013 Distributions Paid From:						2012 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Global Equity and Income Fund	$	15,440,401	$	—	$	15,440,401	$	7,423,009	$	—	$	7,423,009
Growth Fund		1,402,386		—		1,402,386		331,005		—		331,005
Value Fund		22,218,575		—		22,218,575		17,981,701		—		17,981,701

| 74

Notes to Financial Statements (continued)

September 30, 2013

As of September 30, 2013, the components of distributable earnings on a tax basis were as follows:


	Global Equity and Income Fund		Growth Fund			Mid Cap Growth Fund			Value Fund
Undistributed ordinary income	$	16,675,677	$	1,072,680		$	—		$	17,109,134
Undistributed long-term capital gains		4,793,810		—			—			91,317,669

Total undistributed earnings		21,469,487		1,072,680			—			108,426,803

Capital loss carryforward:
Expires
September 30, 2017		—		(49,121,891	)		(10,671,408	)		—
September 30, 2018		—		(34,679,944	)		(18,569,793	)		—

Total capital loss carryforward		—		(83,801,835	)		(29,241,201	)		—
Late-year ordinary and post-October capital loss deferrals*		—		—			(405,415	)		—
Unrealized appreciation		115,385,555		75,681,505			25,522,491			449,011,386

Total accumulated earnings (losses)	$	136,855,042	$	(7,047,650	)	$	(4,124,125	)	$	557,438,189

Capital loss carryforward utilized in the current year	$	25,714,481	$	3,658,274		$	9,930,674		$	6,350,604

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

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

i. Securities Lending. The Funds have entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Funds, to lend securities to certain designated borrowers. The loans are collateralized with cash or securities in an amount equal to at least 105% or 102% of the market value (including accrued

75 |

Notes to Financial Statements (continued)

September 30, 2013

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

For the year ended September 30, 2013, 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.

k. New Accounting Pronouncement. In December 2011, Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” was issued and is effective for interim and annual periods beginning after January 1, 2013. The ASU creates new disclosure requirements with respect to an entity’s rights of setoff and related arrangements associated with its financial and derivative instruments. Management has evaluated the impact the adoption of ASU 2011-11 and will incorporate the new disclosures required in the March 31, 2014 report.

| 76

Notes to Financial Statements (continued)

September 30, 2013

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

•

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

•

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

•

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

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

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2013, at value:

Global Equity and Income Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks
Belgium	$	—	$	17,568,611	$	—	$	17,568,611
Chile		—		7,242,066		—		7,242,066
China		—		15,212,973		—		15,212,973
Germany		—		45,696,250		—		45,696,250
Japan		—		13,971,015		—		13,971,015
Russia		—		9,184,231		—		9,184,231
Sweden		—		15,439,069		—		15,439,069
Switzerland		—		24,423,811		—		24,423,811
Thailand		—		11,368,951		—		11,368,951
Turkey		—		7,568,843		—		7,568,843
United Kingdom		—		129,035,566		—		129,035,566
All Other Common Stocks(a)		493,037,193		—		—		493,037,193

Total Common Stocks		493,037,193		296,711,386		—		789,748,579

77 |

Notes to Financial Statements (continued)

September 30, 2013

Global Equity and Income Fund (continued)

Asset Valuation Inputs (continued)


Description	Level 1		Level 2			Level 3		Total
Bonds and Notes
Non-Convertible Bonds
Brazil	$	—	$	19,727,872		$	1,065,325	$	20,793,197
Korea		—		4,962,942			4,410,510		9,373,452
United States		32,939		149,356,879			3,019,090		152,408,908
All Other Non-Convertible Bonds(a)		—		131,624,974			—		131,624,974

Total Non-Convertible Bonds		32,939		305,672,667			8,494,925		314,200,531

Convertible Bonds(a)		—		8,234,916			—		8,234,916
Municipals(a)		—		457,956			—		457,956

Total Bonds and Notes		32,939		314,365,539			8,494,925		322,893,403

Senior Loans(a)		—		5,956,932			—		5,956,932
Preferred Stocks(a)		5,237,130		—			—		5,237,130
Short-Term Investments		—		34,816,380			—		34,816,380

Total Investments		497,476,602		652,680,897			8,494,925		1,158,652,424

Forward Foreign Currency Contracts (unrealized appreciation)				81,735			—		81,735

Total	$	497,476,602	$	652,762,632		$	8,494,925	$	1,158,734,159


Liability Valuation Inputs
Description	Level 1		Level 2			Level 3		Total
Forward Foreign Currency Contracts (unrealized depreciation)	$	—	$	(309,227	)	$	—	$	(309,227	)

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

A common stock valued at $12,029,094 was transferred from Level 1 to Level 2 during the period ended September 30, 2013. At September 30, 2013, this security was fair valued pursuant to procedures approved by the Board of Trustees as events occurring after the close of the foreign market were believed to materially affect the value of the security.

A preferred stock valued at $637,990 was transferred from Level 2 to Level 1 during the period ended September 30, 2013. At September 30, 2013, this security was valued at the last sale price in accordance with the Fund’s valuation policies.

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

| 78

Notes to Financial Statements (continued)

September 30, 2013

Growth Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	601,497,358	$	—	$	—	$	601,497,358
Short-Term Investments		—		14,440,090		—		14,440,090

Total	$	601,497,358	$	14,440,090	$	—	$	615,937,448

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

For the year ended September 30, 2013, there were no transfers among Levels 1, 2 and 3.

Mid Cap Growth Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	103,990,131	$	—	$	—	$	103,990,131
Purchased Options		183,568		—		—		183,568
Short-Term Investments		—		3,238,036		—		3,238,036

Total	$	104,173,699	$	3,238,036	$	—	$	107,411,735

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

For the year ended September 30, 2013, there were no transfers among Levels 1, 2 and 3.

Value Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	1,891,384,522	$	—	$	—	$	1,891,384,522
Short-Term Investments		—		61,049,074		—		61,049,074

Total	$	1,891,384,522	$	61,049,074	$	—	$	1,952,433,596

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

For the year ended September 30, 2013, there were no transfers among Levels 1, 2 and 3.

79 |

Notes to Financial Statements (continued)

September 30, 2013

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair values as of September 30, 2012 and/or September 30, 2013:

Global Equity and Income Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2012			Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
Brazil	$	—		$	—	$	—	$	(2,505	)	$	1,067,830
Korea		2,528,229			592		154,205		(104,977	)		4,372,943
United States		638,272			1,587		70,035		(145,298	)		1,735,000

Total	$	3,166,501		$	2,179	$	224,240	$	(252,780	)	$	7,175,773


Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3		Balance as of September 30, 2013			Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2013
Bonds and Notes
Non-Convertible Bonds
Brazil	$	—		$	—	$	—	$	1,065,325		$	(2,505	)
Korea		(2,540,482	)		—		—		4,410,510			43,686
United States		(1,205,838	)		1,925,332		—		3,019,090			(97,575	)

Total	$	(3,746,320	)	$	1,925,332	$	—	$	8,494,925		$	(56,394	)

Debt securities valued at $1,925,332 were transferred from Level 2 to Level 3 during the period ended September 30, 2013. At September 30, 2013, these securities were valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the securities.

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

| 80

Notes to Financial Statements (continued)

September 30, 2013

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 Global Equity and Income Fund and Mid Cap Growth Fund used during the period include forward foreign currency contracts and option contracts.

Global Equity and Income Fund is subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. The Fund may enter into forward foreign currency contracts for hedging purposes to protect the value of the Fund’s holdings of foreign securities. The Fund may also use forward foreign currency contracts to gain exposure to foreign currencies, regardless of whether securities denominated in such currencies are held in the Fund. During the year ended September 30, 2013, Global Equity and Income Fund engaged in forward foreign currency transactions for hedging purposes and to gain exposure to foreign currencies.

Mid Cap Growth 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 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 Fund 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 year ended September 30, 2013, Mid Cap Growth Fund engaged in purchased put options for hedging purposes, written put options to offset the cost of options used for hedging purposes, and purchased call options to gain exposure.

The following is a summary of derivative instruments for Global Equity and Income Fund as of September 30, 2013, as reflected within the Statement of Assets and Liabilities:


Assets	Unrealized appreciation on forward foreign currency contracts
Over-the-counter asset derivatives
Foreign exchange contracts	$	81,735

Liabilities	Unrealized depreciation on forward foreign currency contracts
Over-the-counter liability derivatives
Foreign exchange contracts	$	(309,227	)

81 |

Notes to Financial Statements (continued)

September 30, 2013

Transactions in derivative instruments for Global Equity and Income Fund during the year ended September 30, 2013, as reflected within the Statement of Operations were as follows:


Net Realized Gain (Loss) on:	Foreign Currency Transactions¹
Foreign exchange contracts	$	481,563


Net Change in Unrealized Appreciation (Depreciation) on:	Foreign Currency Transactions¹
Foreign exchange contracts	$	(157,093	)

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

The following is a summary of derivative instruments for Mid Cap Growth Fund as of September 30, 2013, as reflected within the Statement of Assets and Liabilities:


Assets	Investments at Value¹
Exchange traded/cleared asset derivatives
Equity contracts	$	183,568

¹	Represents purchased options, at value.

Transactions in derivative instruments for Mid Cap Growth Fund during the year ended September 30, 2013, as reflected within the Statement of Operations were as follows:


Net Realized Gain (Loss) on:	Investments²			Options Written
Equity contracts	$	(551,800	)	$	137,983


Net Change in Unrealized Appreciation (Depreciation) on:	Investments²
Equity contracts	$	(206,019	)

²	Represents realized loss and change in unrealized appreciation (depreciation), respectively, for purchased options 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.

Over-the-counter derivatives, including forward foreign currency contracts, are entered into pursuant to International Swaps and Derivatives Association, Inc. (“ISDA”)

| 82

Notes to Financial Statements (continued)

September 30, 2013

agreements negotiated between the Funds and their counterparties. ISDA agreements typically contain, among other things, terms for posting of collateral and master netting provisions in the event of a default or other termination event. Collateral is posted by a Fund or the counterparty to the extent of the net mark-to-market exposure to the other party of all open contracts under the agreement, subject to minimum transfer requirements. Master netting provisions allow the Funds and the counterparty, in the event of a default or other termination event, to offset amounts owed by each related to derivative contracts, including any posted collateral, to one net amount payable by either the Funds or the counterparty. The Funds’ ISDA agreements typically contain provisions that allow a counterparty to terminate open contracts early if the net asset value of a Fund declines beyond a certain threshold. As of September 30, 2013, the fair value of derivative positions subject to these provisions that are in a net liability position by counterparty, and the value of collateral pledged to counterparties for such contracts is as follows:


Fund	Counterparty	Derivatives			Collateral Pledged
Global Equity and Income Fund	Barclays Bank PLC	$	(70,111	)	$	—
	Credit Suisse International		(172,089	)		—

Timing differences may exist between when contracts under the ISDA agreement are marked-to-market and when collateral moves. The ISDA agreements include tri-party control agreements under which collateral is held for the benefit of the secured party at a third party custodian, State Street Bank.

Counterparty risk is managed based on policies and procedures established by each Fund’s adviser. Such policies and procedures include, but are not limited to, minimum counterparty credit rating requirements, monitoring of counterparty credit default swap spreads and posting of collateral. The risk of loss to a Fund from counterparty default should be limited to the extent a Fund is under collateralized for over-the-counter derivatives; however, final settlement of a Funds’ claim against any collateral received may be subject to bankruptcy court proceedings. Additionally, cash or securities held at or pledged to counterparties for initial/variation margin or as collateral may be subject to bankruptcy court proceedings. Based on balances on Global Equity and Income Fund’s Statement of Assets and Liabilities, the maximum amount of loss the Fund would incur if counterparties failed to meet their obligations is $81,735 and the amount of loss that the Fund would incur after taking into account master netting arrangements is $14,708.

83 |

Notes to Financial Statements (continued)

September 30, 2013

The volume of forward foreign currency contract activity, as a percentage of net assets, for Global Equity and Income Fund based on gross month-end notional amounts outstanding during the period, including long and short positions at absolute value, was as follows for the year ended September 30, 2013:


Global Equity and Income Fund	Forwards
Average Notional Amount Outstanding		1.52	%
Highest Notional Amount Outstanding		3.83	%
Lowest Notional Amount Outstanding		0.81	%
Notional Amount Outstanding as of September 30, 2013		3.83	%

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

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

The volume of option contracts activity, as a percentage of net assets, for Mid Cap Growth Fund based on month-end and/or daily market values of equity securities underlying purchased and written options, at absolute value, was as follows for the year ended September 30, 2013:


Mid Cap Growth Fund*	Call Options Purchased			Put Options Purchased			Put Options Written
Average Market Value of Underlying Securities		0.96	%		0.16	%		0.00	%**
Highest Market Value of Underlying Securities		3.79	%		0.96	%		0.16	%
Lowest Market Value of Underlying Securities		0.00	%		0.00	%		0.00	%
Market Value of Underlying Securities as of September 30, 2013		3.68	%		0.90	%		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.

**	Less than 0.01%.

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


	Number of Contracts			Premiums
Outstanding at September 30, 2012		—		$	—
Options written		1,844			225,046
Options terminated in closing purchase transactions		(1,844	)		(225,046	)

Outstanding at September 30, 2013		—		$	—

| 84

Notes to Financial Statements (continued)

September 30, 2013

5. Purchases and Sales of Securities. For the year ended September 30, 2013, 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	$	717,646,997	$	552,795,105
Growth Fund		417,386,343		16,054,477
Mid Cap Growth Fund		153,482,226		173,761,778
Value Fund		591,985,537		382,288,190

For the year ended September 30, 2013, purchases and sales of U.S. Government/Agency securities by the Global Equity and Income Fund were $48,568,725 and $41,479,193, respectively.

6. Management Fees and Other Transactions with Affiliates.

a. Management Fees. Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to each Fund. Separate management agreements for each Fund in effect for the year ended September 30, 2013, 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	%

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, 2014 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.

85 |

Notes to Financial Statements (continued)

September 30, 2013

For the year ended September 30, 2013, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:


	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Class A			Class B			Class C			Class N			Class Y			Admin Class
Global Equity and Income Fund		1.25	%		—			2.00	%		—			1.00	%		—
Growth Fund		1.25	%		2.00	%		2.00	%		0.95	%		1.00	%		—
Mid Cap Growth Fund		1.25	%		—			2.00	%		0.95	%		1.00	%		—
Value Fund		1.10	%		1.85	%		1.85	%		0.80	%		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 annual operating expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such waived/reimbursed fees or expenses more than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed.

For the year ended September 30, 2013, 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	$	8,172,113	$	—	$	8,172,113		0.75	%		0.75	%
Growth Fund		1,257,080		—		1,257,080		0.50	%		0.50	%
Mid Cap Growth Fund		744,404		47,151		697,253		0.75	%		0.70	%
Value Fund		8,233,449		—		8,233,449		0.50	%		0.50	%

¹	Management fee waivers are subject to possible recovery until September 30, 2014.

For the period ended September 30, 2013 class specific expenses have been reimbursed as follows:


	Reimbursement²
Fund	Class A		Class B		Class C		Class N		Class Y		Admin Class
Growth Fund	$	—	$	—	$	—	$	18	$	—	$	—
Mid Cap Growth Fund		51,868		—		3,203		18		92,116		—

²	Expense reimbursements are subject to possible recovery until September 2014.

| 86

Notes to Financial Statements (continued)

September 30, 2013

No expenses were recovered for any of the Funds during the year ended September 30, 2013 under the terms of the expense agreements.

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

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

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

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

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

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

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

87 |

Notes to Financial Statements (continued)

September 30, 2013

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

For the year ended September 30, 2013, the service and distribution fees for each Fund were as follows:


	Service Fees								Distribution Fees
Fund	Class A		Class B		Class C		Admin Class		Class B		Class C		Admin Class
Global Equity and Income Fund	$	607,416	$	—	$	761,282	$	—	$	—	$	2,283,845	$	—
Growth Fund		98,102		4,036		33,168		—		12,107		99,505		—
Mid Cap Growth Fund		92,810		—		5,037		—		—		15,111		—
Value Fund		375,174		3,276		28,281		12		9,827		84,842		12

c. Administrative Fees. NGAM Advisors, L.P. (“NGAM Advisors”), provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. NGAM Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and NGAM Advisors, each Fund pays NGAM Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, 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.

For the year ended September 30, 2013, the administrative fees for each Fund were as follows:


Fund	Administrative Fees
Global Equity and Income Fund	$	481,960
Growth Fund		111,232
Mid Cap Growth Fund		43,909
Value Fund		728,356

| 88

Notes to Financial Statements (continued)

September 30, 2013

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

For the year ended September 30, 2013, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:


Fund	Sub-Transfer Agent Fees
Global Equity and Income Fund	$	794,889
Growth Fund		214,309
Mid Cap Growth Fund		196,800
Value Fund		2,171,654

As of September 30, 2013, the Funds owe NGAM Distribution the following reimbursements for sub-transfer agent fees:


Fund	Reimbursements of Sub-Transfer Agent Fees
Global Equity and Income Fund	$	11,747
Growth Fund		52,697
Mid Cap Growth Fund		3,748
Value Fund		44,170

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

89 |

Notes to Financial Statements (continued)

September 30, 2013

e. Commissions. Commissions (including CDSCs) on Fund shares retained by NGAM Distribution during the year ended September 30, 2013, were as follows:


Fund	Commissions
Global Equity and Income Fund	$	639,220
Growth Fund		112,695
Mid Cap Growth Fund		28,237
Value Fund		67,496

f. Trustees Fees and Expenses. The Trust does not pay any compensation directly to its officers or Trustees who are directors, officers or employees of NGAM Advisors, NGAM Distribution, Natixis US or their affiliates. Effective January 1, 2013, the Chairperson of the Board receives a retainer fee at the annual rate of $285,000. 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 $115,000. 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 $17,500. 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 $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2013, the Chairperson of the Board received a retainer fee at the annual rate of $265,000 and each Independent Trustee (other than the Chairperson) received, in aggregate, a retainer fee at the annual rate of $95,000. In addition, each committee chairman received an additional retainer fee at an annual rate of $15,000, and each Audit Committee member was compensated $7,500 for each Committee meeting that he or she attended in person and $3,750 for each meeting that he or she attended telephonically.

| 90

Notes to Financial Statements (continued)

September 30, 2013

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 year ended September 30, 2013, Loomis Sayles reimbursed Growth Fund $811 for losses incurred in connection with a trading error.

h. Affiliated Ownership. At September 30, 2013, Loomis Sayles Funded Pension Plan and Trust (“Pension Plan”) and Loomis Sayles Employees’ Profit Sharing Retirement Plan (“Retirement Plan”) held shares of the Funds representing the following percentages of the Funds’ net assets:


Fund	Pension Plan			Retirement Plan			Total Affiliated Ownership
Global Equity and Income Fund		1.48	%		1.07	%		2.55	%
Growth Fund		1.35	%		3.31	%		4.66	%
Mid Cap Growth Fund		9.56	%		11.87	%		21.43	%
Value Fund		0.52	%		1.07	%		1.59	%

Additionally, as of September 30, 2013, Natixis US held shares of Growth Fund, Mid Cap Growth Fund and Value Fund representing less than 1% of each Fund’s net assets.

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

7. Class-Specific Transfer Agent Fees and Expenses. For the period from February 1, 2013 through September 30, 2013, each Fund incurred the following class-specific expenses:


	Transfer Agent Fees and Expenses
Fund	Class N
Growth Fund	$	19
Mid Cap Growth Fund		18
Value Fund		32

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

91 |

Notes to Financial Statements (continued)

September 30, 2013

annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.10% 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 year ended September 30, 2013, none of the Funds had borrowings under these agreements.

9. Brokerage Commission Recapture. Each Fund has entered into agreements with certain brokers whereby the brokers will rebate a portion of brokerage commissions. All amounts rebated by the brokers are returned to the Funds under such agreements and are included in realized gains on investments on the Statements of Operations. For the year ended September 30, 2013, amounts rebated under these agreements were as follows:


Fund	Rebates
Global Equity and Income Fund	$	51,303
Growth Fund		3,334
Mid Cap Growth Fund		17,815
Value Fund		61,036

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

11. Concentration of Ownership. From time to time, a Fund may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of such accounts could have material impacts on the Funds. As of September 30, 2013, based on management’s evaluation of the shareholder account base, the Growth Fund had accounts representing controlling ownership of more than 5% of the Fund’s total outstanding shares. The number of such accounts, based on accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings was as follows:


Fund	Number of >5% Non-Affiliated Account Holders		Percentage of Non-Affiliated Ownership			Percentage of Affiliated Ownership (Note 6)			Total Percentage of Ownership
Global Equity and Income Fund		—		—			2.55	%		2.55	%
Growth Fund		1		51.00	%		4.66	%		55.66	%
Mid Cap Growth Fund		—		—			21.43	%		21.43	%
Value Fund		—		—			1.59	%		1.59	%

| 92

Notes to Financial Statements (continued)

September 30, 2013

Omnibus shareholder accounts for which NGAM Advisors understands that the intermediary has discretion over the underlying shareholder accounts are included in the table above. For other omnibus accounts, the Fund does not have information on the individual shareholder accounts underlying omnibus accounts; therefore, there could be other 5% shareholders in addition to those disclosed in the table above.

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


	Year Ended September 30, 2013					Year Ended September 30, 2012
Global Equity and Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	6,403,257		$	112,444,744		8,720,812		$	141,220,300
Issued in connection with the reinvestment of distributions	158,735			2,698,497		110,750			1,656,822
Redeemed	(5,705,750	)		(101,062,656	)	(3,998,699	)		(64,584,778	)

Net change	856,242		$	14,080,585		4,832,863		$	78,292,344

Class C
Issued from the sale of shares	6,477,950		$	112,781,235		6,618,891		$	107,450,527
Issued in connection with the reinvestment of distributions	79,749			1,347,760		37,940			564,931
Redeemed	(2,880,607	)		(50,645,807	)	(2,089,254	)		(32,993,910	)

Net change	3,677,092		$	63,483,188		4,567,577		$	75,021,548

Class Y
Issued from the sale of shares	13,693,457		$	242,081,042		16,942,461		$	274,580,271
Issued in connection with the reinvestment of distributions	372,584			6,360,002		185,653			2,784,787
Redeemed	(10,334,286	)		(184,305,730	)	(5,411,226	)		(86,765,876	)

Net change	3,731,755		$	64,135,314		11,716,888		$	190,599,182

Increase (decrease) from capital share transactions	8,265,089		$	141,699,087		21,117,328		$	343,913,074

93 |

Notes to Financial Statements (continued)

September 30, 2013

12. Capital Shares (continued).


	Year Ended September 30, 2013					Year Ended September 30, 2012
Growth Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	2,079,530		$	15,522,796		1,936,271		$	11,163,676
Issued in connection with the reinvestment of distributions	42,088			279,039		6,836			38,350
Redeemed	(1,072,705	)		(7,766,746	)	(1,860,105	)		(10,830,069	)

Net change	1,048,913		$	8,035,089		83,002		$	371,957

Class B
Issued from the sale of shares	5,381		$	35,874		12,916		$	73,151
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(130,908	)		(871,942	)	(227,838	)		(1,269,777	)

Net change	(125,527	)	$	(836,068	)	(214,922	)	$	(1,196,626	)

Class C
Issued from the sale of shares	1,396,477		$	9,907,201		245,606		$	1,431,273
Issued in connection with the reinvestment of distributions	1,981			12,359		—			—
Redeemed	(366,836	)		(2,445,099	)	(600,111	)		(3,380,312	)

Net change	1,031,622		$	7,474,461		(354,505	)	$	(1,949,039	)

Class N*
Issued from the sale of shares	132		$	1,000		—		$	—
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	—			—		—			—

Net change	132		$	1,000		—		$	—

Class Y
Issued from the sale of shares	51,555,859		$	422,574,020		3,663,289		$	23,444,311
Issued in connection with the reinvestment of distributions	142,021			998,409		46,359			275,371
Redeemed	(3,414,873	)		(27,120,607	)	(1,438,726	)		(9,219,910	)

Net change	48,283,007		$	396,451,822		2,270,922		$	14,499,772

Increase (decrease) from capital share transactions	50,238,147		$	411,126,304		1,784,497		$	11,726,064

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

| 94

Notes to Financial Statements (continued)

September 30, 2013

12. Capital Shares (continued).


	Year Ended September 30, 2013					Year Ended September 30, 2012
Mid Cap Growth Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	282,282		$	8,735,102		382,245		$	10,336,274
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(789,967	)		(24,463,927	)	(898,702	)		(24,081,488	)

Net change	(507,685	)	$	(15,728,825	)	(516,457	)	$	(13,745,214	)

Class C
Issued from the sale of shares	49,505		$	1,519,811		39,669		$	1,032,950
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(66,245	)		(1,918,756	)	(42,106	)		(1,135,742	)

Net change	(16,740	)	$	(398,945	)	(2,437	)	$	(102,792	)

Class N*
Issued from the sale of shares	32		$	1,000		—		$	—
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	—			—		—			—

Net change	32		$	1,000		—		$	—

Class Y
Issued from the sale of shares	382,988		$	12,402,097		547,417		$	15,078,148
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(511,353	)		(16,567,507	)	(634,861	)		(18,048,468	)

Net change	(128,365	)	$	(4,165,410	)	(87,444	)	$	(2,970,320	)

Increase (decrease) from capital share transactions	(652,758	)	$	(20,292,180	)	(606,338	)	$	(16,818,326	)

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

95 |

Notes to Financial Statements (continued)

September 30, 2013

12. Capital Shares (continued).


	Year Ended September 30, 2013					Year Ended September 30, 2012
Value Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	1,852,296		$	43,861,390		989,772		$	18,793,820
Issued in connection with the reinvestment of distributions	80,241			1,677,029		87,182			1,538,775
Redeemed	(1,449,094	)		(33,882,046	)	(2,772,225	)		(51,186,817	)

Net change	483,443		$	11,656,373		(1,695,271	)	$	(30,854,222	)

Class B
Issued from the sale of shares	5,265		$	129,542		1,714		$	31,648
Issued in connection with the reinvestment of distributions	192			4,059		211			3,758
Redeemed	(34,307	)		(800,771	)	(55,615	)		(1,054,644	)

Net change	(28,850	)	$	(667,170	)	(53,690	)	$	(1,019,238	)

Class C
Issued from the sale of shares	247,166		$	5,937,119		54,410		$	1,016,926
Issued in connection with the reinvestment of distributions	1,685			35,039		1,337			23,495
Redeemed	(91,366	)		(2,113,440	)	(182,376	)		(3,372,547	)

Net change	157,485		$	3,858,718		(126,629	)	$	(2,332,126	)

Class N*
Issued from the sale of shares	10,454,022		$	258,496,210		—		$	—
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(294,410	)		(7,559,202	)	—			—
	��
Net change	10,159,612		$	250,937,008		—		$	—

Class Y
Issued from the sale of shares	19,403,642		$	451,188,543		12,644,597		$	238,607,810
Issued in connection with the reinvestment of distributions	927,685			19,397,907		871,612			15,392,660
Redeemed	(20,622,336	)		(487,734,421	)	(13,771,730	)		(260,802,172	)

Net change	(291,009	)	$	(17,147,971	)	(255,521	)	$	(6,801,702	)

Admin Class
Issued from the sale of shares	420		$	10,224		98		$	1,835
Issued in connection with the reinvestment of distributions	1			14		1			12
Redeemed	(51	)		(1,394	)	(93	)		(1,826	)

Net change	370		$	8,844		6		$	21

Increase (decrease) from capital share transactions	10,481,051		$	248,645,802		(2,131,105	)	$	(41,007,267	)

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

| 96

Report of Independent Registered Public Accounting Firm

To the Trustees of Loomis Sayles Funds II and Shareholders of Loomis Sayles Global Equity and Income Fund, Loomis Sayles Growth Fund, Loomis Sayles Mid Cap Growth Fund and Loomis Sayles Value Fund:

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Global Equity and Income Fund, Loomis Sayles Growth Fund, Loomis Sayles Mid Cap Growth Fund and Loomis Sayles Value Fund, each a series of Loomis Sayles Funds II (collectively, the “Funds”), at September 30, 2013, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2013

97 |

2013 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2013 a percentage of dividends distributed by the Funds listed below qualify for the dividends received deduction for corporate shareholders. These percentages are as follows:


Fund	Qualifying Percentage
Global Equity and Income		34.02	%
Growth		100.00	%
Value		100.00	%

Qualified Dividend Income. For the fiscal year ended September 30, 2013 the Funds below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2013, complete information will be reported in conjunction with Form 1099-DIV.


Fund
Global Equity and Income
Growth
Value

| 98

Trustee and Officer Information

The tables below provide certain information regarding the trustees and officers of Loomis Sayles Funds II (the “Trust”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Funds’ Statement of Additional Information includes additional information about the trustees of the Trust and is available by calling Natixis Funds at 800-225-5478.


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES

Charles D. Baker (1956)	Trustee From 2005 to 2009 and since 2011 Contract Review and Governance Committee Member	Executive in Residence at General Catalyst Partners (venture capital and growth equity firm); formerly, President and Chief Executive Officer, Harvard Pilgrim Health Care (health care organization)	42 Director, Athenahealth, Inc. (software company)	Significant experience on the Board; executive experience (including president and chief executive officer of a health care organization and executive officer of a venture capital and growth equity firm)

Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Contract Review and Governance Committee	Chairman (formerly, President and Chief Executive Officer) of Cain Brothers & Company, Incorporated (investment banking)	42 Director, Sheridan Healthcare Inc. (physician practice management)	Significant experience on the Board and on the board of other business organizations (including at a health care organization); experience in the financial industry (including roles as chairman and former chief executive officer of an investment banking firm)

99 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Kenneth A. Drucker (1945)	Trustee Since 2008 Chairman of the Audit Committee	Retired	42 Formerly, Director, M Fund, Inc. (investment company); Director, Gateway Trust (investment company)	Significant experience on the Board and on the board of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)

Edmond J. English (1953)	Trustee Since 2013 Contract Review and Governance Committee Member	Chief Executive Officer of Bob’s Discount Furniture (retail)	42 Formerly, Director, BJ’s Wholesale Club (retail); formerly, Director, Citizens Financial Group (bank)	Significant experience on the board of other business organizations (including at a retail company and a bank); executive experience (including at a retail company)

| 100

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Wendell J. Knox (1948)	Trustee Since 2009 Audit Committee Member	Director (formerly, President and Chief Executive Officer) of Abt Associates Inc. (research and consulting)	42 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the board of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a consulting company)

Martin T. Meehan (1956)	Trustee Since 2012 Contract Review and Governance Committee Member	Chancellor and faculty member, University of Massachusetts Lowell	42 None	Experience on the Board and on the board of other business organizations; experience as Chancellor of the University of Massachusetts Lowell; government experience (including as a member of the U.S. House of Representatives); academic experience

101 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee Since 2003 Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting)	42 Director, Verizon Communications (telecommunications company); Director, AES Corporation (international power company); formerly, Director, Rohm and Haas Company (specialty chemicals)	Significant experience on the Board and on the board of other business organizations (including at a telecommunications company, an international power company and a specialty chemicals corporation); executive experience (including at a management consulting company)

Erik R. Sirri (1958)	Trustee Since 2009 Audit Committee Member	Professor of Finance at Babson College; formerly, Director of the Division of Trading and Markets at the Securities and Exchange Commission	42 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist

Peter J. Smail (1952)	Trustee Since 2009 Contract Review and Governance Committee Member	Retired; formerly, President and Chief Executive Officer of Pyramis Global Advisors (investment management)	42 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

| 102

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School	42 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)

INTERESTED TRUSTEES

Robert J. Blanding³ (1947) 555 California Street San Francisco, CA 94104	Trustee and Chief Executive Officer Since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	42 None	Significant experience on the Board; continuing service as President, Chairman, and Chief Executive Officer of Loomis, Sayles & Company, L.P.

David L. Giunta⁴ (1965)	Trustee Since 2011 President Since 2008	President and Chief Executive Officer, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.	42 None	Experience on the Board; continuing experience as President and Chief Executive Officer of NGAM Advisors, L.P.

103 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INTERESTED TRUSTEES continued

John T. Hailer⁵ (1960)	Trustee Since 2003	President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.	42 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

Each trustee serves until retirement, resignation or removal from the Board. The current retirement age is 72. The position of Chairperson of the Board is appointed for a two-year term. Ms. Moose was appointed to serve an additional two-year term as the Chairperson of the Board on November 18, 2011.

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

³	Mr. Blanding is deemed an “interested person” of the Trust because he holds the following positions with an affiliated person of the Trust: President, Chairman, Director and Chief Executive Officer of Loomis, Sayles & Company, L.P. and Director of Loomis Sayles Investment Asia Pte., Ltd.

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

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

| 104

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust(s)	Term of Office¹ and Length of Time Served	Principal Occupation(s) During Past 5 Years²

OFFICERS OF THE TRUST

Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

Daniel J. Fuss (1933) One Financial Center Boston, MA 02111	Executive Vice President	Since June 2003	Vice Chairman and Director, Loomis, Sayles & Company, L.P.

Russell L. Kane (1969)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Chief Compliance Officer since May 2006; Assistant Secretary since June 2004; and Anti-Money Laundering Officer since April 2007	Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, NGAM Advisors, L.P. and NGAM Distribution, L.P.

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

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

105 |

LOGO

Loomis Sayles Small Cap Growth Fund

Loomis Sayles Small Cap Value Fund

Annual Report

September 30, 2013



TABLE OF CONTENTS
Portfolio Review			1
Portfolio of Investments			15
Financial Statements			29
Notes to Financial Statements			37

LOOMIS SAYLES SMALL CAP GROWTH FUND


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

Objective

Long-term capital growth from investments in common stocks or other equity securities

Strategy

The fund normally will invest at least 80% of its net assets 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.

Market Conditions

Despite rising interest rate concerns, conflict in Syria and disappointing economic growth, equity markets were strong during the 12-month period. Small-cap companies posted particularly robust results, generally outperforming their mid- and large-cap counterparts. As a result of the strong returns in the small cap universe, stock valuations have trended much higher.

Performance Results

For the 12 months ended September 30, 2013, Institutional Class shares of Loomis Sayles Small Cap Growth Fund returned 37.45%. The fund outperformed its benchmark, the Russell 2000^® Growth Index, which returned 33.07%.

Explanation of Fund Performance

Almost all of the fund’s outperformance was due to stock selection, particularly in the financials, energy and healthcare sectors. The consumer staples and information technology sectors detracted slightly from performance.

A position in Financial Engines, a provider of investment advice to 401(k) plan participants using a quantitative model developed by Nobel Laureate Bill Sharpe, was the top contributor to fund performance. The company reported steadily increasing adoption rates during the year. In addition, Aegerion Pharmaceuticals, a biotech company focused on therapies for cardiovascular and metabolic diseases, was a top-performing stock. The company launched its cholesterol drug during the period, and patient usage continued to accelerate with low discontinuation rates. The drug’s price also increased, eliminating

1 |

tiered pricing. Another top contributor to performance was Wageworks, a leading on-demand provider of tax-advantaged programs for consumer-directed health, commuter and other employee spending account benefits in the United States. The company reported strong results, raised its organic growth target for the year and continued to execute strategic acquisitions that further augment growth. The Affordable Care Act, which has increased the role of consumer- and employee-driven benefits, also helped the stock’s performance.

An out-of-index position in Allot Communications, which designs and develops broadband service optimization solutions to help carriers track and bill usage, was the largest individual detractor from relative performance, lagging on near-term business trend concerns. Specifically, carriers have been hesitant to spend in the face of macroeconomic uncertainty. Given the customer concentration that comes with doing business in this industry, these spending hesitations quickly and significantly affected orders. This triggered our stop loss, and we sold the position. In addition, NuVasive, maker of a minimally invasive spine surgery device, detracted from performance. Due to weak procedure growth and pricing pressure, the company reported disappointing earnings and poor forward guidance. The market’s negative reaction triggered our stop loss, and we sold the position. A position in Nektar Therapeutics, a drug delivery technology company, also detracted from results. Mixed phase-three trial results for an important pipeline drug caused a selloff in the stock, which triggered our stop loss. We exited the position.

Outlook

We continue to estimate earnings growth in the mid single-digit range this year and next. While margin expansion from recessionary lows has largely played out, the evidence tends to support our view that margins should remain healthy in an environment of moderate but steady gross domestic product (GDP) growth. Dividends are expected to grow at a double-digit rate in 2013 and likely in 2014 as well. The potential for dividend growth and moderately higher equity prices could provide equity investors with two opportunities over time. While the Fed has refrained from tapering its monthly bond-buying purchases, known as quantitative easing (QE) for now, investors should prepare for an eventual return to a more normal interest rate environment with a federal funds rate above the zero lower bound. If yields normalize gradually, on the basis of improved economic growth with contained inflation, equity investors should be able to adjust to the changing environment and use periodic average corrections as opportunities to add to favored positions.

| 2

LOOMIS SAYLES SMALL CAP GROWTH FUND

Cumulative Performance — September 30, 2003 through September 30, 2013^(b)(c)

LOGO

Average Annual Total Returns — September 30, 2013^(b)



	1 year			5 years			10 years			Since Class N Inception

Institutional Class (Inception 12/31/96)		37.45	%		15.05	%		11.86	%		—	%
Retail Class (Inception 12/31/96)		37.05			14.73			11.56			—
Class N (Inception 2/1/13)		—			—			—			30.37
Comparative Performance
Russell 2000^® Growth Index^(a)		33.07			13.17			9.85			23.08

NOTES TO CHARTS

^(a)

See page 7 for a description of the index.

^(b)

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

^(c)

The mountain chart is based on the initial minimum of $100,000 for the Institutional Class.

3 |

LOOMIS SAYLES SMALL CAP VALUE FUND


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

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.

Market Conditions

Large- and small-cap U.S. equities in the growth and value styles delivered strong returns for the 12-month period. Overall, small-cap stocks outpaced large-cap stocks, and growth styles measurably exceeded value. Economically sensitive sectors, including consumer discretionary, industrials and information technology, were the performance leaders in the small-cap universe. Slower-growing, high-dividend-yielding sectors and industries, including utilities and real estate investment trusts, generally lagged. Higher valuations and a return of equity fund inflows helped drive market returns higher. In addition, monetary policy remained accommodative, which encouraged investors to hold stocks and other riskier assets, as yields on U.S. Treasuries and other fixed-income securities remained low.

Performance Results

For the 12 months ended September 30, 2013, Institutional Class shares of Loomis Sayles Small Cap Value Fund returned 29.82%. The fund outperformed its benchmark, the Russell 2000^® Value Index, which returned 27.04%.

Explanation of Fund Performance

Both sector allocation and stock selection were important drivers of performance. Sector allocation was positive, primarily due to an overweight position in the industrials sector, which was the benchmark’s second-best performing sector for the period. The fund also had underweight positions in financials and utilities, two of the weakest performing sectors in the index. Stock selection was also positive, with significant outperformance in the energy, utilities and financials sectors offsetting weaker results in consumer discretionary. The utilities sector posted a strong showing due to favorable stock selection in the gas and electric utilities industries and lack of exposure to the poor-performing independent power producers industry.

Within the industrials sector, which was the fund’s top-contributing sector, an emphasis on energy infrastructure-related investments contributed to results. Specifically, positions in Primoris, a provider of engineering and pipeline construction services; H&E Equipment

| 4

LOOMIS SAYLES SMALL CAP VALUE FUND

Services, a distributor of heavy construction and industrial equipment in the Gulf Coast region and DXP Enterprises, a distributor of industrial equipment and parts and service in the Gulf Coast region, aided performance. In addition, a position in Euronet Worldwide, a provider of electronic transaction processing solutions to financial institutions and mobile telephone operators, was the fund’s top contributor for the period. The company reported strong earnings growth throughout the 12 months, primarily due to solid growth in ATMs from European banks seeking outsourcing solutions, improved money transfer volumes and new electronic payment applications outside the core mobile telephone offering.

A position in EPL Oil & Gas, an independent oil and gas exploration and production company, also contributed to results. Recent acquisitions that led to higher oil production and expanded inventory reserves allowed the company to experience strong cash flow and earnings growth. The fund also benefited from owning shares of MarketAxess Holdings, a provider of electronic trading platforms for U.S. and international corporate bonds, which outperformed due to higher trading volumes associated with rising long-term interest rates. In addition, the company’s strategic alliance with BlackRock, an acquisition in Europe and opportunities in the high-yield, emerging markets and credit default swap businesses all improved the outlook and supported a higher valuation.

Consumer discretionary was the benchmark’s top-performing sector, but our stock selection did not keep pace with the benchmark’s strong sector return for the year. Laggards included several retailers, such as Genesco, which was an overweight relative to the index, and an out-of-index position in Sally Beauty, where sales trends moderated due to diminished consumer spending patterns. Outside the consumer discretionary sector, a position in Impax Labs, a developer of branded and generic pharmaceuticals, detracted from performance. Shares declined following an adverse FDA inspection of a manufacturing facility, and we eliminated the position. In addition, DFC Global, a provider of consumer loans and check cashing services in North America and Europe, weighed on results. Mounting regulatory pressures in the company’s U.K. payday lending business led to declining earnings and reduced forecasts. However, our experience with management’s ability to navigate through similar regulatory issues in the past led us to believe that DFC will recover and gain significant market share, as we expect the number of competitors to diminish materially. A position in Titan Machinery, an operator of agriculture and construction equipment dealerships and stores, detracted from results. The company reported disappointing earnings and below consensus guidance for the April and July fiscal quarters. With underlying trends in the agriculture equipment market deteriorating, we eliminated the position.

Outlook

We continue to estimate earnings growth in the mid single-digit range this year and next. While margin expansion from recessionary lows has largely played out, the evidence tends to support our view that margins should remain healthy in an environment of moderate but steady gross domestic product growth. Dividends are expected to grow at a double-digit rate in 2013 and likely in 2014 as well. The potential for dividend growth and moderately higher equity prices could provide equity investors with two opportunities over time. While the Fed has refrained from tapering its monthly bond-buying purchases, known as quantitative easing (QE) for now, investors should prepare for an eventual return to a more normal interest rate environment with a federal funds rate above the zero lower bound. If yields normalize gradually, on the basis of improved economic growth with contained inflation, equity investors should be able to adjust to the changing environment and use periodic average corrections as opportunities to add to favored positions.

5 |

Cumulative Performance — September 30, 2003 through September 30, 2013^(b)(c)

LOGO

Average Annual Total Returns — September 30, 2013^(b)



	1 year			5 years			10 years			Since Class N Inception

Institutional Class (Inception 5/13/91)		29.82	%		11.87	%		10.97	%		—	%
Retail Class (Inception 12/31/96)		29.48			11.59			10.69			—
Admin Class (Inception 1/2/98)		29.17			11.31			10.41			—
Class N (Inception 2/1/13)		—			—			—			16.71

Comparative Performance
Russell 2000^® Value Index^(a)		27.04			9.13			9.29			14.96
Russell 2000^® Index^(a)		30.06			11.15			9.64			18.96

NOTES TO CHARTS

^(a)

See page 7 for a description of the index.

^(b)

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

^(c)

The mountain chart is based on the initial minimum of $100,000 for the Institutional Class.

| 6

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 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.

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.

Additional Index Information

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, 2013 is available on (i) the funds’ website and (ii) the SEC’s website.

Quarterly Portfolio Schedules

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

7 |

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 following examples are intended to help you understand the ongoing costs of investing in the funds and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table of each fund shows the actual amount of fund expenses you would have paid on a $1,000 investment in the fund from April 1, 2013 through September 30, 2013. 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 Period column as shown below for your class.

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

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

| 8

Loomis Sayles Small Cap Growth Fund


Institutional Class	Beginning Account Value 4/1/2013		Ending Account Value 9/30/2013		Expenses Paid During Period* 4/1/2013 – 9/30/2013
Actual		$1,000.00		$1,226.70		$5.14
Hypothetical (5% return before expenses)		$1,000.00		$1,020.46		$4.66

Retail Class
Actual		$1,000.00		$1,224.80		$6.97
Hypothetical (5% return before expenses)		$1,000.00		$1,018.80		$6.33

Class N
Actual		$1,000.00		$1,227.20		$4.63
Hypothetical (5% return before expenses)		$1,000.00		$1,020.91		$4.20
* Expenses are equal to the Fund’s annualized expense ratio: 0.92%, 1.25% and 0.83% for Institutional Class, Retail Class and Class N, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

Loomis Sayles Small Cap Value Fund


Institutional Class	Beginning Account Value 4/1/2013			Ending Account Value 9/30/2013		Expenses Paid During Period* 4/1/2013 – 9/30/2013
Actual		$1,000.00			$1,112.00		$4.77
Hypothetical (5% return before expenses)		$1,000.00	��		$1,020.56		$4.56

Retail Class
Actual		$1,000.00			$1,110.70		$6.08
Hypothetical (5% return before expenses)		$1,000.00			$1,019.30		$5.82

Admin Class
Actual		$1,000.00			$1,109.30		$7.40
Hypothetical (5% return before expenses)		$1,000.00			$1,018.05		$7.08

Class N
Actual		$1,000.00			$1,112.30		$4.50
Hypothetical (5% return before expenses)		$1,000.00			$1,020.81		$4.31
* Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.90%, 1.15%, 1.40% and 0.85% for Institutional Class, Retail Class, Admin Class and Class N, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

9 |

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

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

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

| 10

performance ratings provided by a third-party, total return information for various periods, and third-party performance rankings for various periods comparing a Fund against similarly categorized funds. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review and Governance Committee and/or the full Board, and Funds identified as presenting possible performance concerns may be subject to more frequent board presentations and reviews. In addition, each quarter the Trustees are provided with detailed statistical information about each Fund’s portfolio. The Trustees also receive periodic updates between meetings.

The nature, extent and quality of the services provided to the Funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by the Adviser and its affiliates to the Funds and the resources dedicated to the Funds by the Adviser and its affiliates.

Investment performance of the Funds and the Adviser. As noted above, the Trustees received information about the performance of the Funds over various time periods, including information that compared the performance of the Funds to the performance of peer groups and categories of funds and the Funds’ respective performance benchmarks. In addition, the Trustees also reviewed data prepared by an independent third party that analyzed the performance of the Funds using a variety of performance metrics, including metrics that also measured the performance of the Funds on a risk adjusted basis. With respect to each Fund, the Board concluded that the Fund’s performance or other relevant factors supported the renewal of the Agreement relating to that Fund. In the case of the Loomis Sayles Small Cap Growth Fund, the performance of which lagged that of a relevant peer group median and/or category median of funds for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the relevant Agreement, including (1) that the underperformance

11 |

was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Adviser that were reasonable and consistent with the Fund’s investment objective and policies; (2) that the Fund’s performance was stronger over the long term; and (3) that the Fund’s more recent performance, although lagging in certain periods, had recently shown improvement relative to its category and benchmark.

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

The Trustees also considered the compensation directly or indirectly received by the Adviser and its affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Adviser and its affiliates’ relationships with the Funds, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser compensation or profitability were issues, the performance of the relevant Funds, the

| 12

expense levels of the Funds, and whether the Adviser had implemented breakpoints and/or expense caps with respect to such Funds.

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense waivers or caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense waivers or caps for certain funds. Management explained that a number of factors are taken into account in considering the implementation of breakpoints or an expense cap for a fund, including, among other things, factors such as a fund’s assets, the projected growth of a fund, projected profitability and a fund’s fees and performance. With respect to economies of scale, the Trustees noted that although neither Fund’s management fee was subject to breakpoints, each Fund’s management fee and each Fund’s overall net expense ratio was at or below the median for a peer group of funds and that each Fund was subject to an expense cap. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

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

•

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

•

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

•

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

•

so-called “fallout benefits” to the Adviser, such as the engagement of affiliates of the Adviser to provide distribution, administrative and brokerage services to the Funds, and the benefits of research made available to the Adviser by reason of brokerage commissions (if any) generated by the Funds’ securities transactions. The Trustees also

13 |

considered the fact that NGAM Advisors’ parent company benefits from the retention of an affiliated Adviser. The Trustees considered the possible conflicts of interest associated with these fallout and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest.

•

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

| 14

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Growth Fund


Shares		Description	Value (†)

	Common Stocks – 95.6% of Net Assets

		Aerospace & Defense – 2.1%
	354,359	Hexcel Corp.(b)	$	13,749,129
	140,813	Triumph Group, Inc.		9,887,889

				23,637,018

		Air Freight & Logistics – 1.0%
	501,780	XPO Logistics, Inc.(b)		10,873,573

		Airlines – 1.0%
	319,735	Spirit Airlines, Inc.(b)		10,957,318

		Auto Components – 1.0%
	211,184	Dorman Products, Inc.		10,464,167
	25,904	Drew Industries, Inc.		1,179,668

				11,643,835

		Biotechnology – 6.2%
	72,079	Aegerion Pharmaceuticals, Inc.(b)		6,177,891
	428,159	Alkermes PLC(b)		14,394,705
	83,597	Clovis Oncology, Inc.(b)		5,081,026
	196,970	Cubist Pharmaceuticals, Inc.(b)		12,517,443
	426,434	Emergent Biosolutions, Inc.(b)		8,123,568
	662,304	Exact Sciences Corp.(b)		7,821,810
	269,988	Myriad Genetics, Inc.(b)		6,344,718
	316,181	NPS Pharmaceuticals, Inc.(b)		10,057,718

				70,518,879

		Capital Markets – 2.0%
	194,719	Artisan Partners Asset Management, Inc.		10,195,487
	211,389	Financial Engines, Inc.		12,564,962

				22,760,449

		Chemicals – 1.2%
	584,264	Flotek Industries, Inc.(b)		13,438,072

		Commercial Banks – 3.5%
	232,351	Bank of the Ozarks, Inc.		11,150,524
	691,641	Boston Private Financial Holdings, Inc.		7,677,215
	113,909	Signature Bank(b)		10,424,952
	114,994	SVB Financial Group(b)		9,932,032

				39,184,723

		Communications Equipment – 1.1%
	511,876	Ciena Corp.(b)		12,786,663

		Construction & Engineering – 0.8%
	297,345	MasTec, Inc.(b)		9,009,554

		Consumer Finance – 1.0%
	246,412	Encore Capital Group, Inc.(b)		11,300,454

See accompanying notes to financial statements.

15 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Distributors – 0.8%
	167,986	Pool Corp.	$	9,429,054

		Diversified Consumer Services – 3.6%
	253,682	Bright Horizons Family Solutions, Inc.(b)		9,089,426
	482,944	Grand Canyon Education, Inc.(b)		19,452,984
	794,188	LifeLock, Inc.(b)		11,777,808

				40,320,218

		Diversified Financial Services – 1.1%
	206,738	MarketAxess Holdings, Inc.		12,412,550

		Electrical Equipment – 1.6%
	234,262	Polypore International, Inc.(b)		9,597,714
	348,032	Thermon Group Holdings, Inc.(b)		8,043,020

				17,640,734

		Electronic Equipment, Instruments & Components – 2.8%
	137,284	FEI Co.		12,053,535
	146,825	IPG Photonics Corp.		8,267,716
	211,443	Measurement Specialties, Inc.(b)		11,468,668

				31,789,919

		Energy Equipment & Services – 2.9%
	104,823	Dril-Quip, Inc.(b)		12,028,439
	348,155	Forum Energy Technologies, Inc.(b)		9,403,667
	461,624	Helix Energy Solutions Group, Inc.(b)		11,711,401

				33,143,507

		Food & Staples Retailing – 1.0%
	206,335	Susser Holdings Corp.(b)		10,966,705

		Health Care Equipment & Supplies – 6.6%
	216,984	Abaxis, Inc.		9,135,026
	108,148	Analogic Corp.		8,937,351
	532,804	Endologix, Inc.(b)		8,594,129
	299,992	Insulet Corp.(b)		10,871,710
	208,728	MAKO Surgical Corp.(b)		6,159,563
	450,018	Novadaq Technologies, Inc.(b)		7,461,298
	310,496	Quidel Corp.(b)		8,818,086
	557,988	Spectranetics Corp.(b)		9,363,039
	284,387	Tornier NV(b)		5,497,201

				74,837,403

		Health Care Providers & Services – 1.9%
	285,641	Acadia Healthcare Co., Inc.(b)		11,262,825
	258,831	Team Health Holdings, Inc.(b)		9,820,048

				21,082,873

See accompanying notes to financial statements.

| 16

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Health Care Technology – 2.1%
	569,483	MedAssets, Inc.(b)	$	14,476,258
	91,462	Medidata Solutions, Inc.(b)		9,048,336

				23,524,594

		Hotels, Restaurants & Leisure – 2.8%
	249,776	AFC Enterprises, Inc.(b)		10,887,736
	393,067	Texas Roadhouse, Inc.		10,329,801
	153,465	Vail Resorts, Inc.		10,647,401

				31,864,938

		Insurance – 1.1%
	304,536	Amtrust Financial Services, Inc.		11,895,176

		Internet & Catalog Retail – 1.0%
	385,897	HomeAway, Inc.(b)		10,805,116

		Internet Software & Services – 6.8%
	293,762	Angie’s List, Inc.(b)		6,609,645
	49,225	Benefitfocus, Inc.(b)		2,419,901
	183,189	Cornerstone OnDemand, Inc.(b)		9,423,242
	79,066	CoStar Group, Inc.(b)		13,275,181
	416,913	Dealertrack Technologies, Inc.(b)		17,860,553
	235,972	Envestnet, Inc.(b)		7,315,132
	140,478	OpenTable, Inc.(b)		9,830,651
	37,722	Shutterstock, Inc.(b)		2,743,144
	169,802	Trulia, Inc.(b)		7,985,788

				77,463,237

		IT Services – 1.6%
	239,141	EPAM Systems, Inc.(b)		8,250,365
	449,052	InterXion Holding NV(b)		9,986,916

				18,237,281

		Life Sciences Tools & Services – 0.9%
	203,908	PAREXEL International Corp.(b)		10,242,299

		Machinery – 5.1%
	117,964	Chart Industries, Inc.(b)		14,514,290
	510,126	Manitowoc Co., Inc. (The)		9,988,267
	51,354	Middleby Corp. (The)(b)		10,728,364
	146,399	Proto Labs, Inc.(b)		11,183,420
	177,685	RBC Bearings, Inc.(b)		11,707,665

				58,122,006

		Oil, Gas & Consumable Fuels – 3.9%
	191,103	Diamondback Energy, Inc.(b)		8,148,632
	195,546	Gulfport Energy Corp.(b)		12,581,430
	260,889	Oasis Petroleum, Inc.(b)		12,817,477

See accompanying notes to financial statements.

17 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Oil, Gas & Consumable Fuels – continued
	201,014	Rosetta Resources, Inc.(b)	$	10,947,222

				44,494,761

		Pharmaceuticals – 0.8%
	198,304	Pacira Pharmaceuticals, Inc.(b)		9,536,439

		Professional Services – 6.3%
	272,576	Advisory Board Co. (The)(b)		16,212,821
	224,374	Corporate Executive Board Co. (The)		16,294,040
	211,986	Huron Consulting Group, Inc.(b)		11,152,583
	330,052	On Assignment, Inc.(b)		10,891,716
	332,889	WageWorks, Inc.(b)		16,794,250

				71,345,410

		Road & Rail – 1.2%
	151,826	Genesee & Wyoming, Inc., Class A(b)		14,115,263

		Semiconductors & Semiconductor Equipment – 3.9%
	235,983	Cavium, Inc.(b)		9,722,500
	183,700	Hittite Microwave Corp.(b)		12,004,795
	286,362	Semtech Corp.(b)		8,587,996
	229,711	Silicon Laboratories, Inc.(b)		9,810,957
	149,294	Ultratech, Inc.(b)		4,523,608

				44,649,856

		Software – 7.4%
	373,411	Aspen Technology, Inc.(b)		12,901,350
	131,939	CommVault Systems, Inc.(b)		11,588,203
	203,305	FleetMatics Group PLC(b)		7,634,103
	322,274	Guidewire Software, Inc.(b)		15,182,328
	234,301	Imperva, Inc.(b)		9,845,328
	350,671	QLIK Technologies, Inc.(b)		12,006,975
	102,568	Ultimate Software Group, Inc. (The)(b)		15,118,523

				84,276,810

		Specialty Retail – 5.2%
	208,633	Asbury Automotive Group, Inc.(b)		11,099,276
	136,601	Cabela’s, Inc.(b)		8,609,961
	465,065	Chico’s FAS, Inc.		7,747,983
	183,768	Hibbett Sports, Inc.(b)		10,318,573
	76,302	Lumber Liquidators Holdings, Inc.(b)		8,137,608
	442,140	Tile Shop Holdings, Inc.(b)		13,038,709

				58,952,110

		Textiles, Apparel & Luxury Goods – 2.3%
	88,363	Deckers Outdoor Corp.(b)		5,824,889
	175,007	Oxford Industries, Inc.		11,896,976

See accompanying notes to financial statements.

| 18

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Textiles, Apparel & Luxury Goods – continued
	432,171	Tumi Holdings, Inc.(b)	$	8,708,245

				26,430,110

		Total Common Stocks (Identified Cost $763,703,479)		1,083,688,907


	Principal Amount

	Short-Term Investments – 5.3%
$	59,677,799	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $59,677,799 on 10/01/2013 collateralized by $59,390,000 U.S. Treasury Note, 2.625% due 7/31/2014 valued at $60,874,750 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $59,677,799)		59,677,799

		Total Investments – 100.9% (Identified Cost $823,381,278)(a)		1,143,366,706
		Other Assets Less Liabilities—(0.9)%		(10,062,941	)

		Net Assets – 100.0%	$	1,133,303,765

	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2013, the net unrealized appreciation on investments based on a cost of $823,526,294 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	$	324,898,686
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(5,058,274	)

		Net unrealized appreciation	$	319,840,412

	(b)	Non-income producing security.

See accompanying notes to financial statements.

19 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Growth Fund – continued

Industry Summary at September 30, 2013 (Unaudited)


Software	7.4	%
Internet Software & Services	6.8
Health Care Equipment & Supplies	6.6
Professional Services	6.3
Biotechnology	6.2
Specialty Retail	5.2
Machinery	5.1
Semiconductors & Semiconductor Equipment	3.9
Oil, Gas & Consumable Fuels	3.9
Diversified Consumer Services	3.6
Commercial Banks	3.5
Energy Equipment & Services	2.9
Hotels, Restaurants & Leisure	2.8
Electronic Equipment, Instruments & Components	2.8
Textiles, Apparel & Luxury Goods	2.3
Aerospace & Defense	2.1
Health Care Technology	2.1
Capital Markets	2.0
Other Investments, less than 2% each	20.1
Short-Term Investments	5.3

Total Investments	100.9
Other assets less liabilities	(0.9	)

Net Assets	100.0	%

See accompanying notes to financial statements.

| 20

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Value Fund


Shares		Description	Value (†)

	Common Stocks – 95.6% of Net Assets

		Auto Components – 1.7%
	472,300	Dana Holding Corp.	$	10,787,332
	204,378	Remy International, Inc.		4,136,611
	123,821	Tenneco, Inc.(b)		6,252,960

				21,176,903

		Building Products – 0.7%
	146,078	Armstrong World Industries, Inc.(b)		8,028,447

		Capital Markets – 1.2%
	313,442	Safeguard Scientifics, Inc.(b)		4,917,905
	238,176	Stifel Financial Corp.(b)		9,817,615

				14,735,520

		Chemicals – 3.1%
	235,502	Cabot Corp.		10,058,290
	113,012	Minerals Technologies, Inc.		5,579,402
	256,669	Olin Corp.		5,921,354
	331,159	Tronox Ltd., Class A		8,103,461
	56,578	WR Grace & Co.(b)		4,944,917
	182,083	Zep, Inc.		2,960,670

				37,568,094

		Commercial Banks – 11.3%
	587,102	BancorpSouth, Inc.		11,706,814
	618,248	Cathay General Bancorp		14,448,456
	159,134	City National Corp.		10,607,872
	495,700	CVB Financial Corp.		6,701,864
	482,130	First Financial Bancorp		7,313,912
	138,673	First Financial Bankshares, Inc.		8,156,746
	160,056	IBERIABANK Corp.		8,302,105
	268,620	PacWest Bancorp		9,229,783
	249,560	Pinnacle Financial Partners, Inc.(b)		7,439,384
	226,020	Popular, Inc.(b)		5,928,505
	183,036	Prosperity Bancshares, Inc.		11,318,946
	133,352	Signature Bank(b)		12,204,375
	163,937	Texas Capital Bancshares, Inc.(b)		7,536,184
	426,402	Tristate Capital Holdings, Inc.(b)		5,496,322
	264,608	Wintrust Financial Corp.		10,867,450

				137,258,718

		Commercial Services & Supplies – 4.3%
	683,448	ACCO Brands Corp.(b)		4,538,095
	452,349	KAR Auction Services, Inc.		12,760,765
	144,766	McGrath Rentcorp		5,168,146
	241,139	Performant Financial Corp.(b)		2,633,238
	292,380	Rollins, Inc.		7,750,994
	174,790	Viad Corp.		4,361,010

See accompanying notes to financial statements.

21 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Commercial Services & Supplies – continued
	182,077	Waste Connections, Inc.	$	8,268,117
	309,847	West Corp.		6,869,308

				52,349,673

		Communications Equipment – 0.8%
	496,640	Harmonic, Inc.(b)		3,819,162
	181,462	NETGEAR, Inc.(b)		5,599,917

				9,419,079

		Computers & Peripherals – 0.5%
	526,686	QLogic Corp.(b)		5,761,945

		Construction & Engineering – 1.3%
	318,096	MYR Group, Inc.(b)		7,729,733
	327,074	Primoris Services Corp.		8,330,574

				16,060,307

		Consumer Finance – 0.9%
	45,299	Credit Acceptance Corp.(b)		5,019,582
	503,699	DFC Global Corp.(b)		5,535,652

				10,555,234

		Distributors – 0.5%
	89,097	Core-Mark Holding Co., Inc.		5,919,605

		Diversified Financial Services – 1.1%
	222,094	MarketAxess Holdings, Inc.		13,334,524

		Electric Utilities – 2.4%
	273,388	ALLETE, Inc.		13,204,640
	60,113	ITC Holdings Corp.		5,642,206
	261,847	UIL Holdings Corp.		9,735,472

				28,582,318

		Electrical Equipment – 2.5%
	250,413	AZZ, Inc.		10,482,288
	146,460	EnerSys		8,879,870
	258,156	General Cable Corp.		8,196,453
	148,139	Global Power Equipment Group, Inc.		2,979,075

				30,537,686

		Electronic Equipment, Instruments & Components – 4.6%
	181,646	Belden, Inc.		11,634,426
	125,677	Checkpoint Systems, Inc.(b)		2,098,806
	129,858	Cognex Corp.		4,072,347
	153,412	Littelfuse, Inc.		11,999,887
	262,595	Methode Electronics, Inc.		7,352,660
	166,474	Rogers Corp.(b)		9,901,873

See accompanying notes to financial statements.

| 22

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Electronic Equipment, Instruments & Components – continued
	696,707	Vishay Intertechnology, Inc.(b)	$	8,980,553

				56,040,552

		Energy Equipment & Services – 2.5%
	147,478	Bristow Group, Inc.		10,730,499
	469,230	Helix Energy Solutions Group, Inc.(b)		11,904,365
	1,447,550	Parker Drilling Co.(b)		8,251,035

				30,885,899

		Food & Staples Retailing – 1.1%
	93,950	Casey’s General Stores, Inc.		6,905,325
	312,584	Spartan Stores, Inc.		6,895,603

				13,800,928

		Food Products – 1.2%
	260,206	Darling International, Inc.(b)		5,505,959
	75,683	Ingredion, Inc.		5,007,944
	52,080	J & J Snack Foods Corp.		4,203,898

				14,717,801

		Gas Utilities – 0.5%
	71,432	New Jersey Resources Corp.		3,146,580
	73,877	UGI Corp.		2,890,807

				6,037,387

		Health Care Equipment & Supplies – 1.0%
	111,089	SurModics, Inc.(b)		2,641,697
	112,062	Teleflex, Inc.		9,220,461

				11,862,158

		Health Care Providers & Services – 2.5%
	303,234	Bio-Reference Labs, Inc.(b)		9,060,632
	157,482	Hanger Orthopedic Group, Inc.(b)		5,316,592
	69,094	MEDNAX, Inc.(b)		6,937,038
	136,766	WellCare Health Plans, Inc.(b)		9,538,061

				30,852,323

		Health Care Technology – 0.8%
	379,203	MedAssets, Inc.(b)		9,639,340

		Hotels, Restaurants & Leisure – 3.7%
	139,446	Churchill Downs, Inc.		12,064,868
	58,331	Cracker Barrel Old Country Store, Inc.		6,022,093
	482,098	Diamond Resorts International, Inc.(b)		9,068,263
	233,793	Marriott Vacations Worldwide Corp.(b)		10,286,892
	233,047	Six Flags Entertainment Corp.		7,874,658

				45,316,774

See accompanying notes to financial statements.

23 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Household Durables – 1.3%
	249,633	Jarden Corp.(b)	$	12,082,237
	160,487	La-Z-Boy, Inc.		3,644,660

				15,726,897

		Industrial Conglomerates – 0.8%
	314,611	Raven Industries, Inc.		10,290,926

		Insurance – 3.8%
	446,540	Employers Holdings, Inc.		13,280,100
	326,467	HCC Insurance Holdings, Inc.		14,305,784
	216,618	ProAssurance Corp.		9,760,807
	133,959	Reinsurance Group of America, Inc., Class A		8,973,913

				46,320,604

		Internet & Catalog Retail – 1.3%
	153,101	HSN, Inc.		8,209,276
	87,030	Liberty Ventures, Series A(b)		7,673,435

				15,882,711

		Internet Software & Services – 0.9%
	341,227	Perficient, Inc.(b)		6,264,927
	515,461	United Online, Inc.		4,113,379

				10,378,306

		IT Services – 2.9%
	459,809	Convergys Corp.		8,621,419
	354,406	Euronet Worldwide, Inc.(b)		14,105,359
	142,959	WEX, Inc.(b)		12,544,652

				35,271,430

		Machinery – 5.6%
	156,182	Actuant Corp., Class A		6,066,109
	79,516	Alamo Group, Inc.		3,889,128
	225,097	Albany International Corp., Class A		8,074,229
	369,810	Altra Holdings, Inc.		9,951,587
	254,862	John Bean Technologies Corp.		6,340,967
	179,900	RBC Bearings, Inc.(b)		11,853,611
	214,905	TriMas Corp.(b)		8,015,956
	214,071	Wabtec Corp.		13,458,644

				67,650,231

		Marine – 0.9%
	121,016	Kirby Corp.(b)		10,473,935

		Media – 2.8%
	345,302	Carmike Cinemas, Inc.(b)		7,624,268
	267,658	E.W. Scripps Co. (The), Class A(b)		4,911,524

See accompanying notes to financial statements.

| 24

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Media – continued
	186,322	John Wiley & Sons, Inc., Class A	$	8,885,696
	360,616	Live Nation Entertainment, Inc.(b)		6,689,427
	333,537	National CineMedia, Inc.		6,290,508

				34,401,423

		Metals & Mining – 2.2%
	199,275	Globe Specialty Metals, Inc.		3,070,828
	149,911	Haynes International, Inc.		6,795,465
	459,624	Horsehead Holding Corp.(b)		5,726,915
	40,984	Reliance Steel & Aluminum Co.		3,002,898
	440,342	SunCoke Energy, Inc.(b)		7,485,814

				26,081,920

		Multi Utilities – 0.7%
	184,776	NorthWestern Corp.		8,300,138

		Multiline Retail – 0.4%
	293,168	Fred’s, Inc. Class A		4,588,079

		Oil, Gas & Consumable Fuels – 1.2%
	389,935	EPL Oil & Gas, Inc.(b)		14,470,488

		Pharmaceuticals – 0.4%
	122,062	Mallinckrodt PLC(b)		5,381,713

		REITs – Apartments – 1.9%
	213,247	American Campus Communities, Inc.		7,282,385
	124,279	Home Properties, Inc.		7,177,112
	133,984	Mid-America Apartment Communities, Inc.		8,374,000

				22,833,497

		REITs – Diversified – 1.0%
	224,639	DuPont Fabros Technology, Inc.		5,788,947
	157,581	Potlatch Corp.		6,252,814

				12,041,761

		REITs – Healthcare – 0.8%
	324,457	Omega Healthcare Investors, Inc.		9,691,531

		REITs – Hotels – 0.8%
	1,629,443	Hersha Hospitality Trust		9,108,586

		REITs – Office Property – 0.8%
	532,268	BioMed Realty Trust, Inc.		9,894,862

		REITs – Single Tenant – 0.5%
	195,910	National Retail Properties, Inc.		6,233,856

See accompanying notes to financial statements.

25 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		REITs – Storage – 2.2%
	701,228	CubeSmart	$	12,509,907
	180,366	Sovran Self Storage, Inc.		13,650,099

				26,160,006

		Road & Rail – 2.2%
	267,431	Avis Budget Group, Inc.(b)		7,710,036
	62,675	Genesee & Wyoming, Inc., Class A(b)		5,826,895
	293,871	Old Dominion Freight Line, Inc.(b)		13,515,127

				27,052,058

		Semiconductors & Semiconductor Equipment – 2.3%
	352,473	Magnachip Semiconductor Corp.(b)		7,588,744
	315,850	Semtech Corp.(b)		9,472,341
	637,778	Teradyne, Inc.(b)		10,536,093

				27,597,178

		Software – 1.9%
	234,935	Monotype Imaging Holdings, Inc.		6,733,237
	234,725	SS&C Technologies Holdings, Inc.(b)		8,943,022
	201,746	Synchronoss Technologies, Inc.(b)		7,678,453

				23,354,712

		Specialty Retail – 2.7%
	282,867	Barnes & Noble, Inc.(b)		3,660,299
	170,258	Genesco, Inc.(b)		11,165,520
	49,036	Jos. A. Bank Clothiers, Inc.(b)		2,155,622
	175,920	Rent-A-Center, Inc.		6,702,552
	363,798	Sally Beauty Holdings, Inc.(b)		9,516,956

				33,200,949

		Thrifts & Mortgage Finance – 0.5%
	485,003	Capitol Federal Financial, Inc.		6,028,587

		Trading Companies & Distributors – 1.6%
	98,104	DXP Enterprises, Inc.(b)		7,747,273
	156,263	H&E Equipment Services, Inc.(b)		4,150,345
	267,058	Rush Enterprises, Inc., Class A(b)		7,079,708

				18,977,326

		Transportation Infrastructure – 0.7%
	147,211	Macquarie Infrastructure Co. LLC		7,881,677

		Water Utilities – 0.3%
	150,135	Middlesex Water Co.		3,211,388

		Total Common Stocks (Identified Cost $756,315,294)		1,158,927,990

See accompanying notes to financial statements.

| 26

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Closed End Investment Companies – 2.1%
	468,764	Ares Capital Corp.	$	8,104,929
	899,272	Fifth Street Finance Corp.		9,253,509
	475,547	Hercules Technology Growth Capital, Inc.		7,252,092

		Total Closed End Investment Companies (Identified Cost $22,036,891)		24,610,530


	Warrants – 0.0%
	67,892	Magnum Hunter Resources Corp., Expiration on 10/14/2013 at $10.50(b)(c)(d) (Identified Cost $0)		—


	Principal Amount

	Short-Term Investments – 2.2%
$	26,590,292	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $26,590,292 on 10/01/2013 collateralized by $27,540,000 U.S. Treasury Note, 0.625% due 8/31/2017 valued at $27,126,900 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $26,590,292)		26,590,292

		Total Investments – 99.9% (Identified Cost $804,942,477)(a)		1,210,128,812
		Other assets less liabilities – 0.1%		1,752,314

		Net Assets – 100.0%	$	1,211,881,126

	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2013, the net unrealized appreciation on investments based on a cost of $804,927,604 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	$	416,234,871
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(11,033,663	)

		Net unrealized appreciation	$	405,201,208

	(b)	Non-income producing security.
	(c)	Fair valued by the Fund’s investment adviser.
	(d)	Illiquid security.

	REITs	Real Estate Investment Trusts

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Small Cap Value Fund – continued

Industry Summary at September 30, 2013 (Unaudited)


Commercial Banks	11.3	%
Machinery	5.6
Electronic Equipment, Instruments & Components	4.6
Commercial Services & Supplies	4.3
Insurance	3.8
Hotels, Restaurants & Leisure	3.7
Chemicals	3.1
IT Services	2.9
Media	2.8
Specialty Retail	2.7
Energy Equipment & Services	2.5
Health Care Providers & Services	2.5
Electrical Equipment	2.5
Electric Utilities	2.4
Semiconductors & Semiconductor Equipment	2.3
Road & Rail	2.2
REITs – Storage	2.2
Metals & Mining	2.2
Closed End Investment Companies	2.1
Other Investments, less than 2% each	32.0
Short-Term Investments	2.2

Total Investments	99.9
Other assets less liabilities	0.1

Net Assets	100.0	%

See accompanying notes to financial statements.

| 28

Statements of Assets and Liabilities

September 30, 2013


	Small Cap Growth Fund			Small Cap Value Fund
ASSETS
Investments at cost	$	823,381,278		$	804,942,477
Net unrealized appreciation		319,985,428			405,186,335

Investments at value		1,143,366,706			1,210,128,812
Cash		—			264,281
Receivable for Fund shares sold		5,248,378			731,263
Receivable for securities sold		1,301,626			3,399,342
Dividends receivable		66,572			1,298,165

TOTAL ASSETS		1,149,983,282			1,215,821,863

LIABILITIES
Payable for securities purchased		14,269,972			1,841,328
Payable for Fund shares redeemed		1,486,433			1,086,230
Management fees payable (Note 5)		698,032			701,507
Deferred Trustees’ fees (Note 5)		98,499			173,171
Administrative fees payable (Note 5)		40,229			43,393
Payable to distributor (Note 5d)		14,086			15,202
Other accounts payable and accrued expenses		72,266			79,906

TOTAL LIABILITIES		16,679,517			3,940,737

NET ASSETS	$	1,133,303,765		$	1,211,881,126

NET ASSETS CONSIST OF:
Paid-in capital	$	747,231,982		$	711,714,328
Accumulated net investment (loss)/Undistributed net investment income		(6,100,899	)		192,931
Accumulated net realized gain on investments		72,187,254			94,787,532
Net unrealized appreciation on investments		319,985,428			405,186,335

NET ASSETS	$	1,133,303,765		$	1,211,881,126


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Institutional Class:
Net assets	$	913,999,555		$	733,512,166

Shares of beneficial interest		34,690,689			19,602,640

Net asset value, offering and redemption price per share	$	26.35		$	37.42

Retail Class:
Net assets	$	211,724,362		$	403,475,317

Shares of beneficial interest		8,390,981			10,897,229

Net asset value, offering and redemption price per share	$	25.23		$	37.03

Admin Class:
Net assets	$	—		$	74,892,476

Shares of beneficial interest		—			2,066,675

Net asset value, offering and redemption price per share	$	—		$	36.24

Class N:
Net assets	$	7,579,848		$	1,167

Shares of beneficial interest		287,596			31

Net asset value, offering and redemption price per share	$	26.36		$	37.44	*

*	Net asset value calculations reflect fractional share and dollar amounts.

See accompanying notes to financial statements.

29 |

Statements of Operations

For the Year Ended September 30, 2013


	Small Cap Growth Fund			Small Cap Value Fund
INVESTMENT INCOME
Dividends	$	2,260,117	(a)	$	16,398,441
Interest		1,404			862

		2,261,521			16,399,303

Expenses
Management fees (Note 5)		6,846,564			8,140,092
Service and distribution fees (Note 5)		518,764			1,274,711
Administrative fees (Note 5)		403,822			480,091
Trustees’ fees and expenses (Note 5)		41,543			52,032
Transfer agent fees and expenses (Notes 5 and 6)		1,106,885			1,135,571
Audit and tax services fees		38,671			43,895
Custodian fees and expenses		39,716			38,788
Legal fees		11,919			14,383
Registration fees		76,082			85,654
Shareholder reporting expenses		93,250			119,862
Miscellaneous expenses		28,069			31,662

Total expenses		9,205,285			11,416,741
Fee/expense recovery (Note 5)		16,604			—
Less waiver and/or expense reimbursement (Note 5)		—			(373,920	)

Net expenses		9,221,889			11,042,821

Net investment income (loss)		(6,960,368	)		5,356,482


NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on:
Investments		87,223,584			101,532,511
Net change in unrealized appreciation (depreciation) on:
Investments		222,061,214			174,751,306

Net realized and unrealized gain on investments		309,284,798			276,283,817


NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	302,324,430		$	281,640,299

(a)	Includes non-recurring dividends of $505,661.

See accompanying notes to financial statements.

| 30

Statements of Changes in Net Assets


	Small Cap Growth Fund						Small Cap Value Fund
	Year Ended September 30, 2013			Year Ended September 30, 2012			Year Ended September 30, 2013			Year Ended September 30, 2012
FROM OPERATIONS:
Net investment income (loss)	$	(6,960,368	)	$	(4,991,954	)	$	5,356,482		$	6,076,844
Net realized gain on investments		87,223,584			14,608,048			101,532,511			49,521,017
Net change in unrealized appreciation (depreciation) on investments		222,061,214			100,644,997			174,751,306			195,787,207

Net increase in net assets resulting from operations		302,324,430			110,261,091			281,640,299			251,385,068

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Institutional Class		—			—			(5,790,803	)		(1,033,252	)
Retail Class		—			—			(2,562,409	)		—
Admin Class		—			—			(317,577	)		—
Net realized capital gains
Institutional Class		—			—			(501,108	)		—
Retail Class		—			—			(299,758	)		—
Admin Class		—			—			(57,681	)		—

Total distributions		—			—			(9,529,336	)		(1,033,252	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 9)		1,689,164			451,606,631			(44,339,129	)		(111,263,616	)

Net increase in net assets		304,013,594			561,867,722			227,771,834			139,088,200
NET ASSETS
Beginning of the year		829,290,171			267,422,449			984,109,292			845,021,092

End of the year	$	1,133,303,765		$	829,290,171		$	1,211,881,126		$	984,109,292

ACCUMULATED NET INVESTMENT (LOSS)/UNDISTRIBUTED NET INVESTMENT INCOME	$	(6,100,899	)	$	(4,261,711	)	$	192,931		$	4,639,670

See accompanying notes to financial statements.

31 |

This Page Intentionally Left Blank

| 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 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
SMALL CAP GROWTH FUND

Institutional Class
9/30/2013	$	19.17	$	(0.15	)(e)	$	7.33		$	7.18		$	—	$	—	$	—
9/30/2012		15.06		(0.14	)		4.25			4.11			—		—		—
9/30/2011		14.03		(0.13	)		1.16	(f)		1.03			—		—		—
9/30/2010		11.58		(0.11	)(h)		2.56			2.45			—		—		—
9/30/2009		13.07		(0.07	)		(1.42	)		(1.49	)		—		—		—

Retail Class
9/30/2013		18.41		(0.20	)(e)		7.02			6.82			—		—		—
9/30/2012		14.52		(0.19	)		4.08			3.89			—		—		—
9/30/2011		13.55		(0.18	)		1.15	(f)		0.97			—		—		—
9/30/2010		11.21		(0.13	)(h)		2.47			2.34			—		—		—
9/30/2009		12.69		(0.09	)		(1.39	)		(1.48	)		—		—		—

Class N
9/30/2013*		20.22		(0.11	)		6.25			6.14			—		—		—

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

(a)

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

(b)

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.

(c)

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

(d)

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

(e)

Includes non-recurring dividends. Without these dividends, net investment loss per share would have been $(0.16) and $(0.21) for Institutional Class and Retail Class, respectively, total return would have been 37.40% and 36.99% for Institutional Class and Retail Class, respectively, and the ratio of net investment loss to average net assets would have been (0.75)% and (1.05)% for Institutional Class and Retail Class, respectively.

(f)

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.

(g)

Includes fee/expense recovery of 0.03%.

(h)

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.

(i)

Includes fee/expense recovery of 0.01%.

See accompanying notes to financial statements.

33 |


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



$	26.35		37.45	(e)	$	914,000		0.94			0.94			(0.70	)(e)		56
	19.17		27.29			599,469		0.95			0.95			(0.79	)		77
	15.06		7.34			154,313		0.98	(g)		0.98	(g)		(0.78	)		76
	14.03		21.16			52,501		1.00			1.06			(0.85	)(h)		69
	11.58		(11.40	)		45,557		1.00			1.01			(0.68	)		107


	25.23		37.05	(e)		211,724		1.25	(i)		1.25	(i)		(0.99	)(e)		56
	18.41		26.79			229,822		1.25			1.28			(1.09	)		77
	14.52		7.16			113,110		1.25			1.27			(1.07	)		76
	13.55		20.87			75,344		1.25			1.39			(1.10	)(h)		69
	11.21		(11.66	)		75,478		1.25			1.43			(0.93	)		107


	26.36		30.37			7,580		0.83			0.83			(0.63	)		56

See accompanying notes to financial statements.

| 34

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 (b)			Distributions from net realized capital gains			Total distributions
SMALL CAP VALUE FUND

Institutional Class
9/30/2013	$	29.14	$	0.20		$	8.41		$	8.61		$	(0.30	)	$	(0.03	)	$	(0.33	)
9/30/2012		22.36		0.21			6.62			6.83			(0.05	)		—			(0.05	)
9/30/2011		22.93		0.09	(h)		(0.50	)		(0.41	)		(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	)

Retail Class
9/30/2013		28.84		0.12			8.32			8.44			(0.22	)		(0.03	)		(0.25	)
9/30/2012		22.14		0.13			6.57			6.70			—			—			—
9/30/2011		22.71		0.02	(h)		(0.48	)		(0.46	)		(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	)

Admin Class
9/30/2013		28.22		0.04			8.15			8.19			(0.14	)		(0.03	)		(0.17	)
9/30/2012		21.72		0.06			6.44			6.50			—			—			—
9/30/2011		22.30		(0.04	)(h)		(0.49	)		(0.53	)		(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	)

Class N
9/30/2013*		32.08		0.06			5.30			5.36			—			—			—

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

(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)

(f)

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

(g)

Includes fee/expense recovery of less than 0.01%.

(h)

Includes a non-recurring dividend. Without this dividend, net investment income (loss) per share would have been $0.07, $0.01 and $(0.06) for Institutional Class, Retail Class and Admin Class, respectively, total return would have been (1.93)%, (2.16)% and (2.44)% for Institutional Class, Retail Class and Admin Class, respectively and the ratio of net investment income (loss) to average net assets would have been 0.28%, 0.03% and (0.22)% for Institutional Class, Retail Class and Admin Class, respectively.

See accompanying notes to financial statements.

35 |


									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 (%) (f)			Net investment income (loss) (%) (f)			Portfolio turnover rate (%)



$	—	$	37.42		29.82		$	733,512		0.90			0.91			0.61			22
	—		29.14		30.59			572,776		0.90	(g)		0.90	(g)		0.76			19
	—		22.36		(1.88	)(h)		431,761		0.90			0.93			0.33	(h)		42
	—		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


	—		37.03		29.48			403,475		1.15			1.22			0.37			22
	—		28.84		30.26			343,480		1.15			1.22			0.49			19
	—		22.14		(2.12	)(h)		347,759		1.15			1.22			0.08	(h)		42
	—		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


	—		36.24		29.17			74,892		1.40			1.52			0.11			22
	—		28.22		29.93			67,853		1.40			1.52			0.24			19
	—		21.72		(2.40	)(h)		65,500		1.40			1.52			(0.17	)(h)		42
	—		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


	—		37.44		16.71			1		0.85			14.45			0.27			22

See accompanying notes to financial statements.

| 36

Notes to Financial Statements

September 30, 2013

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 is a diversified investment company.

Small Cap Growth Fund and Small Cap Value Fund were closed to new investors effective September 14, 2012 and September 15, 2008, respectively. The Funds continue to offer Institutional Class and Retail Class shares to existing investors and Small Cap Value Fund continues to offer Admin Class shares to existing investors. Effective February 1, 2013, each Fund began offering Class N shares to existing investors.

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.

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 year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.

37 |

Notes to Financial Statements – (continued)

September 30, 2013

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) and unlisted equity securities are generally valued on the basis of evaluated bids furnished to the Funds by an independent pricing service, recommended by the investment adviser and approved by the Board of Trustees, which 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 prices may also be used to value debt and equity securities where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Investments in other open-end investment companies are valued at their net asset value each day. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser under the general supervision of the Board of Trustees.

b. Investment Transactions and Related Investment Income. Investment transactions are accounted for on a trade date plus one day 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. Distributions received from investments in securities that represent a return of capital or capital gain are recorded as a reduction of cost of the 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

| 38

Notes to Financial Statements – (continued)

September 30, 2013

accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the fiscal year. Estimates are based on the most recent REIT distribution information available. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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 September 30, 2013 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based

39 |

Notes to Financial Statements – (continued)

September 30, 2013

on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

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 return of capital distributions received 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 return of capital distributions received, 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 years ended September 30, 2013 and 2012 was as follows:


	2013 Distributions Paid From:						2012 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Small Cap Value Fund	$	8,670,789	$	858,547	$	9,529,336	$	1,033,252	$	—	$	1,033,252

| 40

Notes to Financial Statements – (continued)

September 30, 2013

As of September 30, 2013, the components of distributable earnings on a tax basis were as follows:


	Small Cap Growth Fund			Small Cap Value Fund
Undistributed ordinary income	$	—		$	366,102
Undistributed long-term capital gains		72,332,270			94,772,659

Total undistributed earnings		72,332,270			95,138,761

Late-year ordinary and post-October capital loss deferrals*		(6,002,400	)		—
Unrealized appreciation		319,840,412			405,201,208

Total accumulated earnings	$	386,170,282		$	500,339,969

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

f. Repurchase Agreements. 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 year ended September 30, 2013, neither Fund had loaned securities under this agreement.

41 |

Notes to Financial Statements – (continued)

September 30, 2013

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.

i. New Accounting Pronouncement. In December 2011, Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” was issued and is effective for interim and annual periods beginning after January 1, 2013. The ASU creates new disclosure requirements with respect to an entity’s rights of setoff and related arrangements associated with its financial instruments. Management has evaluated the impact the adoption of ASU 2011-11 and will incorporate the new disclosures required in the March 31, 2014 report.

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

•

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

•

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

•

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

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

| 42

Notes to Financial Statements – (continued)

September 30, 2013

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2013, at value:

Small Cap Growth Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	1,083,688,907	$	—	$	—	$	1,083,688,907
Short-Term Investments		—		59,677,799		—		59,677,799

Total	$	1,083,688,907	$	59,677,799	$	—	$	1,143,366,706

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

For the year ended September 30, 2013, there were no transfers among Levels 1, 2 and 3.

Small Cap Value Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	1,158,927,990	$	—	$	—	$	1,158,927,990
Closed End Investment Companies		24,610,530		—		—		24,610,530
Warrants(b)		—		—		—		—
Short-Term Investments		—		26,590,292		—		26,590,292

Total	$	1,183,538,520	$	26,590,292	$	—	$	1,210,128,812

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

(b) Fair valued at zero using Level 2 inputs.

For the year ended September 30, 2013, there were no transfers among Levels 1, 2 and 3.

4. Purchases and Sales of Securities. For the year ended September 30, 2013, purchases and sales of securities (excluding short-term investments) were as follows:


Fund	Purchases		Sales
Small Cap Growth Fund	$	492,161,921	$	518,118,918
Small Cap Value Fund		237,353,441		300,903,268

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%

43 |

Notes to Financial Statements – (continued)

September 30, 2013

For the year ended September 30, 2013, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:


	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Institutional Class		Retail Class		Admin Class		Class N
Small Cap Growth Fund		1.00%		1.25%		—		0.95%
Small Cap Value Fund		0.90%		1.15%		1.40%		0.85%

For the year ended September 30, 2013, the management fees for each Fund were as follows:


Fund	Management Fees		Percentage of Average Daily Net Assets
Small Cap Growth Fund	$	6,846,564		0.75%
Small Cap Value Fund	$	8,140,092		0.75%

For the year ended September 30, 2013, class-specific expenses have been reimbursed as follows:


	Reimbursement¹
Fund	Institutional Class		Retail Class		Admin Class		Class N		Total
Small Cap Value Fund	$	42,284	$	246,272	$	85,267	$	97	$	373,920

¹	Expense reimbursements are subject to possible recovery until September 30, 2014.

For the year ended September 30, 2013, expense reimbursements related to the prior fiscal year were recovered as follows:


	Recovered Expenses
Fund	Institutional Class		Retail Class		Total
Small Cap Growth Fund	$	—	$	16,604	$	16,604

Certain officers and employees of Loomis Sayles are also officers or Trustees of the Trusts. Loomis Sayles’ general partner is indirectly owned by Natixis Global Asset Management,

| 44

Notes to Financial Statements – (continued)

September 30, 2013

L.P. (“Natixis US”), which is part of Natixis Global Asset Management, an international asset management group based in Paris, France.

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

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

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

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

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

For the year ended September 30, 2013, the service and distribution fees for each Fund were as follows:


	Service Fees		Distribution Fees
Fund	Admin Class		Retail Class		Admin Class
Small Cap Growth Fund	$	—	$	518,764	$	—
Small Cap Value Fund		174,592		925,527		174,592

45 |

Notes to Financial Statements – (continued)

September 30, 2013

c. Administrative Fees. NGAM Advisors, L.P. (“NGAM Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. NGAM Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and NGAM Advisors, each Fund pays NGAM Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, 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.

For the year ended September 30, 2013, the administrative fees for each Fund were as follows:


Fund	Administrative Fees
Small Cap Growth Fund	$	403,822
Small Cap Value Fund		480,091

For the year ended September 30, 2013, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:


	Sub-Transfer Agent Fees
Fund	Institutional Class		Retail Class		Admin Class
Small Cap Growth Fund	$	754,805	$	274,338	$	—
Small Cap Value Fund		472,189		488,381		129,855

| 46

Notes to Financial Statements – (continued)

September 30, 2013

As of September 30, 2013, the Funds owe NGAM Distribution the following reimbursements for sub-transfer agent fees:


	Reimbursements of Sub-Transfer Agent Fees
Fund	Institutional Class		Retail Class		Admin Class
Small Cap Growth Fund	$	10,127	$	3,959	$	—
Small Cap Value Fund		6,297		6,986		1,919

e. Trustees Fees and Expenses. The Trusts do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of NGAM Advisors, NGAM Distribution, Natixis US or their affiliates. Effective January 1, 2013, the Chairperson of the Board receives a retainer fee at the annual rate of $285,000. 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 $115,000. 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 $17,500. 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 $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, 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

47 |

Notes to Financial Statements – (continued)

September 30, 2013

Trustees’ fees and expenses in the Statements of Operations. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees in the Statements of Assets and Liabilities.

f. Affiliated Ownership. At September 30, 2013, Loomis Sayles Funded Pension Plan and Trust (“Pension Plan”) and Loomis Sayles Employees’ Profit Sharing Retirement Plan (“Retirement Plan”) held shares of the Funds representing the following percentages of net assets:


Fund	Pension Plan		Retirement Plan		Total Affiliated Ownership
Small Cap Growth Fund		0.75%		1.18%		1.93%
Small Cap Value Fund		1.11%		2.00%		3.11%

Additionally, as of September 30, 2013, NGAM Advisors held shares of Small Cap Value Fund representing less than 0.01% of the Funds’ net assets.

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

6. Class-Specific Transfer Agent Fees and Expenses. For the year ended September 30, 2013, the class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable) for each Fund were as follows:


	Transfer Agent Fees and Expenses
Fund	Institutional Class		Retail Class		Admin Class		Class N
Small Cap Growth Fund	$	770,843	$	335,932	$	—	$	110
Small Cap Value Fund		494,773		506,287		134,414		97

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 0.10% 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 year ended September 30, 2013, neither Fund had borrowings under these agreements.

| 48

Notes to Financial Statements – continued

September 30, 2013

8. Brokerage Commission Recapture. Each Fund has entered into agreements with certain brokers whereby the brokers will rebate a portion of brokerage commissions. All amounts rebated by the brokers are returned to the Funds under such agreements and are included in realized gains on investments in the Statements of Operations. For the year ended September 30, 2013, amounts rebated under these agreements were as follows:


Fund	Rebates
Small Cap Growth Fund	$	57,189
Small Cap Value Fund		45,409

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


	Small Cap Growth Fund
	Year Ended September 30, 2013						Year Ended September 30, 2012
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		11,813,357		$	252,532,051			25,012,829		$	444,379,599
Issued in connection with the reinvestment of distributions		—			—			—			—
Redeemed		(8,396,592	)		(176,478,451	)		(3,982,168	)		(71,766,116	)

Net change		3,416,765		$	76,053,600			21,030,661		$	372,613,483

Retail Class
Issued from the sale of shares		2,620,258		$	53,469,074			8,772,957		$	149,204,216
Issued in connection with the reinvestment of distributions		—			—			—			—
Redeemed		(6,709,873	)		(135,077,555	)		(4,084,044	)		(70,211,068	)

Net change		(4,089,615	)	$	(81,608,481	)		4,688,913		$	78,993,148

Class N*
Issued from the sale of shares		291,609		$	7,346,195			—		$	—
Issued in connection with the reinvestment of distributions		—			—			—			—
Redeemed		(4,013	)		(102,150	)		—			—

Net change		287,596		$	7,244,045			—		$	—

Increase (decrease) from capital share transactions		(385,254	)	$	1,689,164			25,719,574		$	451,606,631

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

49 |

Notes to Financial Statements – continued

September 30, 2013

9. Capital Shares – continued.


	Small Cap Value Fund
	Year Ended September 30, 2013						Year Ended September 30, 2012
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		3,209,013		$	105,799,055			4,160,980		$	112,254,002
Issued in connection with the reinvestment of distributions		204,464			6,072,591			37,002			980,177
Redeemed		(3,464,461	)		(112,934,799	)		(3,852,812	)		(105,017,313	)

Net change		(50,984	)	$	(1,063,153	)		345,170		$	8,216,866

Retail Class
Issued from the sale of shares		1,284,622		$	42,022,941			1,188,522		$	32,260,155
Issued in connection with the reinvestment of distributions		96,978			2,855,026			—			—
Redeemed		(2,396,051	)		(77,723,740	)		(4,987,227	)		(135,496,848	)

Net change		(1,014,451	)	$	(32,845,773	)		(3,798,705	)	$	(103,236,693	)

Admin Class
Issued from the sale of shares		474,991		$	15,185,040			593,951		$	15,631,061
Issued in connection with the reinvestment of distributions		9,613			277,512			—			—
Redeemed		(822,273	)		(25,893,755	)		(1,205,509	)		(31,874,850	)

Net change		(337,669	)	$	(10,431,203	)		(611,558	)	$	(16,243,789	)

Class N*
Issued from the sale of shares		31		$	1,000			—		$	—
Issued in connection with the reinvestment of distributions		—			—			—			—
Redeemed		—			—			—			—

Net change		31		$	1,000			—		$	—

Increase (decrease) from capital share transactions		(1,403,073	)	$	(44,339,129	)		(4,065,093	)	$	(111,263,616	)

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

| 50

Report Of Independent Registered Public Accounting Firm

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

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Small Cap Value Fund, a series of Loomis Sayles Funds I, and the Loomis Sayles Small Cap Growth Fund, a series of Loomis Sayles Funds II (collectively, the “Funds”), at September 30, 2013, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2013

51 |

2013 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2013, a percentage of dividends distributed by the Funds listed below qualify for the dividends received deduction for corporate shareholders. These percentages are as follows:


Fund	Qualifying Percentage
Small Cap Value		100.00%

Capital Gains Distributions. Pursuant to Internal Revenue Section 852(b), the following Funds paid distributions, which have been designated as capital gains distributions for the fiscal year ended September 30, 2013, unless subsequently determined to be different.


Fund	Amount
Small Cap Value	$	858,547

Qualified Dividend Income. For the fiscal year ended September 30, 2013, the Funds below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2013, complete information will be reported in conjunction with Form 1099-DIV.

Fund

Small Cap Value

| 52

Trustee and Officer Information

As of 9/30/13

The tables below provide certain information regarding the trustees and officers of Loomis Sayles Funds I and Loomis Sayles Funds II (the “Trusts”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Funds’ Statement of Additional Information includes additional information about the trustees of the Trusts and is available by calling Natixis Funds at 800-225-5478.


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES

Charles D. Baker (1956)	Trustee From 2005 to 2009 and since 2011 Contract Review and Governance Committee Member	Executive in Residence at General Catalyst Partners (venture capital and growth equity firm); formerly, President and Chief Executive Officer, Harvard Pilgrim Health Care (health care organization)	42 Director, Athenahealth, Inc. (software company)	Significant experience on the Board; executive experience (including president and chief executive officer of a health care organization and executive officer of a venture capital and growth equity firm)

Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Contract Review and Governance Committee	Chairman (formerly, President and Chief Executive Officer) of Cain Brothers & Company, Incorporated (investment banking)	42 Director, Sheridan Healthcare Inc. (physician practice management)	Significant experience on the Board and on the board of other business organizations (including at a health care organization); experience in the financial industry (including roles as chairman and former chief executive officer of an investment banking firm)

Kenneth A. Drucker (1945)	Trustee Since 2008 Chairman of the Audit Committee	Retired	42 Formerly, Director, M Fund, Inc. (investment company); Director, Gateway Trust (investment company)	Significant experience on the Board and on the board of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)

53 |

Trustee and Officer Information – continued


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES – continued

Edmond J. English (1953)	Trustee Since 2013 Contract Review and Governance Committee Member	Chief Executive Officer of Bob’s Discount Furniture (retail)	42 Formerly, Director, BJ’s Wholesale Club (retail); formerly, Director, Citizens Financial Group (bank)	Significant experience on the board of other business organizations (including at a retail company and a bank); executive experience (including at a retail company)

Wendell J. Knox (1948)	Trustee Since 2009 Audit Committee Member	Director (formerly, President and Chief Executive Officer) of Abt Associates Inc. (research and consulting)	42 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the board of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

Martin T. Meehan (1956)	Trustee Since 2012 Contract Review and Governance Committee Member	Chancellor and faculty member, University of Massachusetts Lowell	42 None	Experience on the Board and on the board of other business organizations; experience as Chancellor of the University of Massachusetts Lowell; government experience (including as a member of the U.S. House of Representatives); academic experience

| 54

Trustee and Officer Information – continued


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES – continued

Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee Since 2003 Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting)	42 Director, Verizon Communications (telecommunications company); Director, AES Corporation (international power company); formerly, Director, Rohm and Haas Company (specialty chemicals)	Significant experience on the Board and on the board of other business organizations (including at a telecommunications company, an international power company and a specialty chemicals corporation); executive experience (including at a management consulting company)

Erik R. Sirri (1958)	Trustee Since 2009 Audit Committee Member	Professor of Finance at Babson College; formerly, Director of the Division of Trading and Markets at the Securities and Exchange Commission	42 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist

Peter J. Smail (1952)	Trustee Since 2009 Contract Review and Governance Committee Member	Retired; formerly, President and Chief Executive Officer of Pyramis Global Advisors (investment management)	42 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School	42 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)

55 |

Trustee and Officer Information – continued


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INTERESTED TRUSTEES

Robert J. Blanding³ (1947) 555 California Street San Francisco, CA 94104	Trustee Since 2003 President and Chief Executive Officer of Loomis Sayles Funds I since 2002 Chief Executive Officer of Loomis Sayles Funds II since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	42 None	Significant experience on the Board; continuing service as President, Chairman, and Chief Executive Officer of Loomis, Sayles & Company, L.P.

David L. Giunta⁴ (1965)	Trustee Since 2011 President of Loomis Sayles Funds II and Executive Vice President of Loomis Sayles Funds I since 2008	President and Chief Executive Officer, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.	42 None	Experience on the Board; continuing experience as President and Chief Executive Officer of NGAM Advisors, L.P.

John T. Hailer⁵ (1960)	Trustee Since 2003	President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.	42 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

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

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

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

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

| 56

Trustee and Officer Information – continued


Name and Year of Birth	Position(s) Held with the Trusts	Term of Office¹ and Length of Time Served	Principal Occupation(s) During Past 5 Years²

OFFICERS OF THE TRUSTS

Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

Daniel J. Fuss (1933) One Financial Center Boston, MA 02111	Executive Vice President	Since June 2003	Vice Chairman and Director, Loomis, Sayles & Company, L.P.

Russell L. Kane (1969)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Chief Compliance Officer since May 2006; Assistant Secretary since June 2004; and Anti-Money Laundering Officer since April 2007	Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, NGAM Advisors, L.P. and NGAM Distribution, L.P.

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

57 |

ANNUAL REPORT

September 30, 2013

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

TABLE OF CONTENTS

Portfolio Review page 1

Portfolio of Investments page 27

Financial Statements page 67

Notes to Financial Statements page 81

LOOMIS SAYLES CORE PLUS BOND FUND


Managers	Symbols
Peter W. Palfrey, CFA	Class A	NEFRX
Richard G. Raczkowski	Class B	NERBX
Loomis, Sayles & Company, L.P.	Class C	NECRX
	Class N	NERNX
	Class Y	NERYX

Objective

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

Strategy

Under normal market conditions, the Fund will invest at least 80% of its net assets in bonds, which include debt securities of any maturity. In addition, the Fund normally will invest primarily in investment-grade securities. The Fund may also invest up to 20% of its assets, at the time of purchase, in bonds rated below investment-grade.

Market Conditions

The 12-month period began with investor attention focused on the November 2012 U.S. presidential election. Soon afterward, fears that the U.S. economy would fall off the “fiscal cliff” took center stage, and investors sought to position themselves for the automatic tax hikes and spending cuts scheduled for January 1, 2013. Ultimately, Congress and the president struck an 11^th-hour deal, which helped buoy the markets through the first quarter of 2013. During the second quarter of 2013, the Federal Reserve (the Fed) introduced volatility into the fixed-income markets by indicating a potential winding down of its monthly program of mortgage and U.S. Treasury bond purchases, known as quantitative easing (QE). The magnitude of the resulting selloff and the overall disruption to markets tightened financial conditions significantly. Based on the Fed’s announcement, investors anticipated the Fed would begin tapering QE following the central bank’s September policy meeting. However, the Fed surprised the financial markets and decided to delay action while softening its forward guidance. This announcement led to a rally in equities, emerging market currencies and fixed-income markets. The 12-month period ended September 30, 2013 concluded with renewed uncertainty surrounding Congressional budget and debt-ceiling discussions.

Performance Results

For the 12 months ended September 30, 2013, Class A shares of Loomis Sayles Core Plus Bond Fund returned -0.61%. The fund held up better than its benchmark, the Barclays U.S. Aggregate Bond Index, which returned -1.68%.

1 |

Explanation of Fund Performance

Security selection among investment grade corporate credits, particularly within the industrials sector, proved beneficial to fund return. Also, an overweight position in investment-grade credit, with a bias toward lower-rated investment grade securities and a focus on strong relative value, aided performance. Additionally, out-of-benchmark exposure to high-yield corporates and non-U.S.-dollar-denominated securities contributed strongly to performance. In particular, exposure to higher-rated high-yield credits was the largest contributor to relative performance. Within these quality categories, security selection among financials and industrials provided the bulk of the outperformance. Throughout the period, we opportunistically added to the fund’s non-U.S.-dollar holdings, rotating out of Spain and Italy and added to Portugal. These positions contributed positively to relative performance. In addition, an out-of-benchmark allocation to bank loans aided return. Within the commercial mortgage-backed securities sector, the fund focused on older-production, higher-rated, super-senior structures. These selections, coupled with an overweight allocation versus the benchmark, aided relative performance. Also within the securitized sector, the fund’s overweight allocation to front-end and high-quality asset-backed securities helped performance.

Meanwhile, a longer duration (price sensitivity to interest rate changes) position in U.S. Treasuries and agencies detracted from performance, as rates rose during the period. However, underweight allocations to these sectors slightly offset losses. Within the government sector, the fund continued to have a significant overweight in the long end of the yield curve (a curve that shows the relationship among bonds yields across the maturity spectrum). In addition, the fund had a significant underweight position in mortgage-backed securities relative to the benchmark. Overall, the fund had a bias toward higher-coupon issues in order to capture incremental yield. Nevertheless, this sector detracted from relative performance during the period. The fund’s small allocation to emerging market Yankee corporate bonds (U.S.-dollar-denominated bonds issued by a non-U.S. entity) detracted from relative performance, particularly those issued by Mexican homebuilders.

Outlook

We believe the fund is well positioned to benefit from the ongoing recovery in higher-risk markets in a more range-bound interest rate environment. Going forward, we expect continued slow improvement from peripheral European countries as the European Central Bank and European Union focus on economic recovery, fiscal stabilization and banking reform. We believe Portugal is positioned to benefit the most as investors move back into the higher-yielding markets. While nominal duration remains long versus the market, we have been managing empirical duration (a duration calculation using historical market-based bond prices and Treasury yields) to be slightly short versus the market.

| 2

LOOMIS SAYLES CORE PLUS BOND FUND

Growth of $10,000 Investment in Class A Shares³

September 30, 2003 through September 30, 2013

LOGO

3 |

Average Annual Total Returns — September 30, 2013³



	1 Year			5 Years			10 Years			Since Class N Inception

Class A (Inception 11/7/73)
NAV		-0.61	%		9.49	%		6.26	%		—	%
With 4.50% Maximum Sales Charge		-5.10			8.48			5.77			—

Class B (Inception 9/13/93)
NAV		-1.32			8.67			5.48			—
With CDSC¹		-6.03			8.38			5.48			—

Class C (Inception 12/30/94)
NAV		-1.36			8.68			5.48			—
With CDSC¹		-2.30			8.68			5.48

Class N (Inception 2/1/13)
NAV		—			—			—			-2.02

Class Y (Inception 12/30/94)
NAV		-0.35			9.78			6.54			—

Comparative Performance
Barclays U.S. Aggregate Bond Index²		-1.68			5.41			4.59			-1.12

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.

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

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

| 4

LOOMIS SAYLES HIGH INCOME FUND


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

Objective

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

Strategy

Under normal market conditions, the Fund will invest at least 65% of its assets in below investment-grade fixed-income securities. The Fund will normally invest at least 65% of its assets in U.S. corporate or U.S. dollar denominated foreign fixed-income securities. The Fund may also invest up to 20% of its assets in foreign currency-denominated fixed-income securities, including those in emerging markets and related currency hedging transactions.

Market Conditions

Central bank policy was the primary force driving markets during the 12-month period ended September 30, 2013. Fiscal issues took center stage early in the period, as investors worried about the “fiscal cliff” of federal tax hikes and spending cuts scheduled to commence on January 1, 2013. Following a last-minute deal that prevented the worst of the fiscal cliff, investor optimism surged at the beginning of 2013. But for much of 2013’s second quarter, the credit markets struggled as the Federal Reserve (the Fed) indicated it might begin tapering its monthly asset purchase program. This led to increased market volatility and declining market liquidity, as investors feared interest rates would rise sooner rather than later. However, the Fed surprised the financial markets by announcing in September it would continue its current pace of bond buying. In response, markets rallied and liquidity improved late in the period. Elsewhere, 2013 opened with the collapse of Cyprus’s two largest banks. By the second quarter, the challenges in Europe, where the economic downturn appeared to stabilize, were overshadowed by an economic slowdown in China. Toward the end of the period, Fed announcements, coupled with weak global growth expectations, triggered foreign market volatility.

Performance Results

For the 12 months ended September 30, 2013, Class A shares of Loomis Sayles High Income Fund returned 6.27%. The fund underperformed its benchmark, Barclays U.S. Corporate High-Yield Bond Index, which returned 7.14% for the period.

5 |

Explanation of Fund Performance

An underweight position in high-yield industrials weighed on the fund’s relative performance. Weaker-than-expected production and rumors of restructuring at a Brazilian oil and gas company led the sector’s declines. Poor performance in the consumer cyclical and communication sectors, as well as positioning along the yield curve (a curve that shows the relationship among bond yields across the maturity spectrum), also detracted from relative return. In addition, a slight overweight position in emerging markets dragged down performance. Positions in Mexico’s homebuilding industry declined due to uncertainty surrounding government policies on housing construction and development. An out-of-benchmark allocation to non-U.S.-dollar-denominated securities detracted from relative performance. Currency exposure to the Brazilian real, Mexican peso and Philippine peso also weighed on results. The fund’s forward contracts, used to hedge currency, performed poorly during the period.

The fund’s position in convertible securities was the strongest contributor to return. Selections within the technology, American automotive and homebuilding sectors generally bolstered results. Underweight positions in high yield also aided relative return. Security selection in the financial and utilities industries contributed modestly to results. In addition, an out-of-benchmark allocation to residential mortgage-backed securities (RMBS) aided portfolio performance. Out-of-benchmark positions in both preferred and common stock also generally increased return as the equity markets surged throughout much of the quarter.

Outlook

Our outlook for the U.S. and global economies remains largely consistent despite political and policy uncertainty. We believe U.S. gross domestic product (GDP) growth will move toward 3.0% next year, based on acceleration in the housing sector as well as momentum in autos and energy. However, deflationary pressures remain a concern in the short run as wage growth is slow, unemployment is still high (though slowly improving), and the output gap remains decidedly negative. Due primarily to weak economic growth, we expect the Fed to maintain accommodative monetary policy and to employ a slow, cautious approach to rate increases. Our forecast for the 10-year U.S. Treasury yield is approximately 2.75% at year-end, moving to 3.25% a year from now.

Several key risks may affect our outlook. We expect to see steady, perhaps even increased, volatility during the final quarter of 2013. Investor anxiety regarding upcoming economic releases and their impact on future Fed policy will likely contribute to market turbulence. The U.S. government shutdown and debt ceiling debates will likely occupy the headlines, adding another source of volatility. Europe remains an ongoing concern; however, economic and fiscal conditions appear stable for now.

Based on our long-term views, we have not made material asset allocation changes. Our strategy centers on research-based security selection, with a focus on sectors that can be uncorrelated with U.S. interest rates, and we continue to build diversification into the fund. We intend to maintain reduced term structure risk and continue to decrease nominal

| 6

LOOMIS SAYLES HIGH INCOME FUND

duration through sector and security selection. The fund’s ability to invest in what we view as the best risk-adjusted opportunities across a full range of global markets, sectors and securities may be an advantage as the economic recovery unfolds and the investment landscape evolves.

Growth of $10,000 Investment in Class A Shares³

September 30, 2003 through September 30 2013

LOGO

7 |

Average Annual Total Returns — September 30, 2013³



	1 Year			5 Years			10 Years			Since Class Y Inception

Class A (Inception 2/22/84)
NAV		6.27	%		11.02	%		8.09	%		—	%
With 4.50% Maximum Sales Charge		1.42			10.00			7.59			—

Class B (Inception 9/20/93)
NAV		5.66			10.19			7.30			—
With CDSC¹		0.66			9.92			7.30			—

Class C (Inception 3/2/98)
NAV		5.46			10.23			7.30			—
With CDSC¹		4.46			10.23			7.30			—

Class Y (Inception 2/29/08)
NAV		6.56			11.26			—			8.16

Comparative Performance
Barclays U.S. Corporate High-Yield Bond Index²		7.14			13.53			8.86			10.47

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

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

| 8

LOOMIS SAYLES INTERNATIONAL BOND FUND


Managers	Symbols
Kenneth M. Buntrock, CFA, CIC	Class A	LSIAX
David W. Rolley, CFA	Class C	LSICX
Lynda L. Schweitzer, CFA	Class Y	LSIYX
Loomis, Sayles & Company, L.P.

Objective

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

Strategy

Under normal market conditions, the Fund expects to invest at least 80% of its net assets in fixed income securities. The Fund is non-diversified, which means that it may invest a greater percentage of its assets in a particular issuer and may invest in fewer issuers than a diversified fund. The Fund invests primarily (at least 65% of its net assets) in fixed-income securities of issuers located outside the United States, including issuers located in emerging market countries. The Fund invests primarily in investment-grade fixed-income securities. The Fund may invest up to 35% of its assets in below investment-grade fixed-income securities.

Market Conditions

Central bank policy was the primary force driving financial markets during the 12-month period ended September 30, 2013. Bond purchasing programs by the Federal Reserve (the Fed) and the European Central Bank (ECB) drove down yields in most markets during 2012 and the first few months of 2013. This caused investors to search for returns in the corporate credit markets, where balance sheets were improving despite slow aggregate macroeconomic growth. As a result, investment-grade corporates finished 2012 and began 2013 performing quite well as spreads tightened in the United States, the UK and the euro zone. This “risk-on” environment favored lower quality issues and emerging markets. The tide began to change during 2013’s second quarter, when the Fed indicated it might begin tapering its asset purchase program, causing credit markets to reverse course. The Fed’s announcement increased market volatility and reduced market liquidity, affecting emerging markets in particular, which gave back substantial portions of recent gains. However, the Fed surprised financial markets by announcing in September it would continue its current pace of bond buying. The Fed’s “dovish” surprise provided relief to some riskier currencies and bonds through the end of the period.

European economic indicators generally remained soft but improved late in the period, as the euro zone slowly started climbing out of its second recession since 2008. Disinflationary pressures from the peripheral countries remained, with headline inflation below the European Central Bank’s 2.0% target. The ECB has stuck to its forward guidance that rates would stay low for an “extended period.”

9 |

Overall, global economic data continued to improve. Although China’s economic slowdown stabilized, we believe China will be held back by its efforts to deleverage. China remains saddled with too much bad credit, monetary policy has been restrained and market reforms have been complex.

Performance Results

For the 12 months ended September 30, 2013, Class A shares of Loomis Sayles International Bond Fund returned -2.62%. The fund held up better than its benchmark, the Barclays Global Aggregate ex-US Dollar Bond Index, which returned -3.39%.

Explanation of Fund Performance

Security selection, sector allocation decisions and active currency exposures generally accounted for the fund’s performance advantage over its benchmark. From a currency perspective, underweight allocations to the Australian dollar and the Japanese yen aided performance. Overweight exposure to South Korea’s won and an out-of-benchmark position in Uruguay’s peso also contributed positively. In addition, our preference for corporates over government issues proved beneficial, as did security selection within the corporate sector. Specifically, holdings in the U.S. banking and basic industry areas and in the European banking and communication sectors helped performance. Positioning along the yield curve (a curve that shows the relationship among bond yields across the maturity spectrum) was an additional source of return. Notably, euro-denominated Treasuries, which had an overall longer-than-benchmark duration (price sensitivity to interest rate changes), were particularly helpful.

Country allocation detracted from relative performance, largely due to underweight positions in euro markets and overweight positions in Norway and Singapore. Additionally, overweight currency exposures to the British pound and the Malaysian ringgit, along with an underweight allocation to the euro, weighed on performance. Selections among U.K. corporates also dragged down relative performance.

Outlook

We believe the credit cycle is in the early stage of expansion. Credit fundamentals appear strong, but they may be peaking as profit margins come under modest pressure. Bond yields should rise as the global economy improves, but this may come in fits and starts. We also expect the pace of growth to be inconsistent. We recognize the credit cycle may not advance exactly as we expect, but we do expect corporate bonds will continue to outperform Treasuries. We therefore remain comfortable continuing to overweight the corporate sector, seeking companies with strong fundamentals and favorable risk/reward profiles Concerns surrounding slow growth in China have made us increasingly cautious of non-Japan Asian currencies, and we have decreased the fund’s overweight. Recent volatility in emerging markets is restoring value, but careful security selection remains critical, as softer growth prospects, higher inflation and weaker terms of trade have challenged the asset class. Overall, we expect countries with the ability to implement major structural reforms to continue to outperform.

| 10

LOOMIS SAYLES INTERNATIONAL BOND FUND

Growth of $10,000 Investment in Class A Shares³

February 1, 2008 (inception) through September 30, 2013

LOGO

11 |

Average Annual Total Returns — September 30, 2013³



	1 Year			5 Years			Since Inception

Class A (Inception 2/1/08)
NAV		-2.62	%		6.85	%		4.80	%
With 4.50% Maximum Sales Charge		-6.99			5.87			3.95

Class C (Inception 2/1/08)
NAV		-3.27			6.07			4.01
With CDSC¹		-4.21			6.07			4.01

Class Y (Inception 2/1/08)
NAV		-2.34			7.14			5.05

Comparative Performance
Barclays Global Aggregate ex-USD Bond Index²		-3.39			4.80			3.38

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

2	Barclays 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.

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

| 12

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND


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

Objective

Seeks a high current return consistent with preservation of capital

Strategy

Invests at least 80% of its net assets in securities issued or guaranteed by the U.S. government, its agencies or instrumentalities

Market Conditions

Mounting concerns about the timing of the Federal Reserve’s (the Fed’s) exit strategy from its program of monthly mortgage and U.S. Treasury securities purchases, known as quantitative-easing (QE), put downward pressure on agency mortgage-backed securities (MBS). Agency MBS outperformed Treasuries in spite of widening spreads (the yield difference between non-Treasury and Treasury securities) that occurred in the sector.

Despite bouts of volatility throughout the year, credit-sensitive assets, including commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS), generally outperformed Treasuries with similar durations (price sensitivity to interest rate changes). After approaching 12-month highs in early July, CMBS spreads narrowed in the third quarter of 2013 and ended the period tighter than they were at the end of September 2012.

Since hitting record lows in May 2013, intermediate- and long-term U.S. Treasury yields increased on growing expectations that the Fed would scale back QE in September. Overall, the yield on the 10-year Treasury note increased nearly one percentage point during the 12-month period ended September 30, 2013. However, following its September policy meeting, the Fed surprised the financial markets by announcing it was taking no immediate action, which led to a rally in the fixed-income markets at the end of the period.

Performance Results

For the 12 months ended September 30, 2013, Class A shares of Loomis Sayles Limited Term Government and Agency Fund returned -0.81%. The fund underperformed its benchmark, the Barclays U.S. 1-5 Year Government Bond Index, which was flat, with a 0.00% return for the same period.

13 |

Explanation of Fund Performance

Positioning along the yield curve (a curve that shows the relationship among bond yields across the maturity spectrum) was the primary detractor from relative performance. Given the rise in rates during the period, longer-duration bonds experienced greater price depreciation relative to shorter-duration bonds. The bulk of the negative performance due to yield curve positioning came from the fund’s agency MBS allocation.

The fund’s CMBS holdings provided the largest positive contribution to relative performance during the period, as the sector outperformed U.S. government securities on a duration-adjusted basis (which considers a security’s return relative to similar-duration Treasuries). In addition, agency MBS, including mortgage pass-through securities and other structured bonds, performed well and contributed positively to performance. Similar to CMBS, ABS performed well during the period, outperforming Treasury and agency bonds. As a result, the fund’s modest allocation had a positive effect on relative performance.

Outlook

We believe the tight credit restrictions currently prevalent in the mortgage refinance market have the potential to provide agency MBS some relief during periods of declining interest rates. But, rising rates likely will have a negative effect on the agency MBS universe. We also expect ABS to benefit from solid underlying credit fundamentals, and we believe the sector offers attractive yield advantages. We believe CMBS spreads remain attractive, given the high quality of the bonds. As the commercial real estate market recovers, this sector should continue to offer attractive opportunities.

| 14

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

Growth of $10,000 Investment in Class A Shares³

September 30, 2003 through September 30, 2013

LOGO

15 |

Average Annual Total Returns — September 30, 2013³



	1 Year			5 Years			10 Years

Class A (Inception 1/3/89)
NAV		-0.81	%		3.93	%		3.45	%
With 3.00% Maximum Sales Charge		-3.77			3.30			3.13

Class B (Inception 9/27/93)
NAV		-1.56			3.16			2.68
With CDSC¹		-6.41			2.80			2.68

Class C (Inception 12/30/94)
NAV		-1.55			3.16			2.69
With CDSC¹		-2.52			3.16			2.69

Class Y (Inception 3/31/94)
NAV		-0.56			4.20			3.70

Comparative Performance
Barclays U.S. 1-5 Year Government Bond Index²		0.00			2.60			3.16

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

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

| 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 the(se) fund(s) is/are actively managed, there is no assurance that they will continue to invest in the securities or industries mentioned.

ADDITIONAL INDEX INFORMATION

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 ngam.natixis.com; and on the Securities and Exchange Commission’s (SEC’s) website at www.sec.gov. Information regarding how the funds voted proxies relating to portfolio securities during the 12-month period ended June 30, 2013 is available from the funds’ website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

17 |

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 following examples are intended to help you understand the ongoing costs of investing in the funds and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table of each class of fund shares shows the actual account values and actual fund expenses you would have paid on a $1,000 investment in the fund from April 1, 2013 through September 30, 2013. 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. 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.

| 18


LOOMIS SAYLES CORE PLUS BOND FUND	BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID DURING PERIOD* 4/1/2013 – 9/30/2013
Class A
Actual		$1,000.00		$972.90		$3.91
Hypothetical (5% return before expenses)		$1,000.00		$1,021.11		$4.00
Class B
Actual		$1,000.00		$969.10		$7.60
Hypothetical (5% return before expenses)		$1,000.00		$1,017.35		$7.79
Class C
Actual		$1,000.00		$969.90		$7.60
Hypothetical (5% return before expenses)		$1,000.00		$1,017.35		$7.79
Class N
Actual		$1,000.00		$974.40		$2.18
Hypothetical (5% return before expenses)		$1,000.00		$1,022.86		$2.23
Class Y
Actual		$1,000.00		$974.30		$2.67
Hypothetical (5% return before expenses)		$1,000.00		$1,022.36		$2.74

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.79%, 1.54%, 1.54%, 0.44% and 0.54% for Class A, B, C, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

19 |


LOOMIS SAYLES HIGH INCOME FUND	BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID DURING PERIOD* 4/1/2013 – 9/30/2013
Class A
Actual		$1,000.00		$983.10		$5.72
Hypothetical (5% return before expenses)		$1,000.00		$1,019.30		$5.82
Class B
Actual		$1,000.00		$979.30		$9.43
Hypothetical (5% return before expenses)		$1,000.00		$1,015.54		$9.60
Class C
Actual		$1,000.00		$979.40		$9.43
Hypothetical (5% return before expenses)		$1,000.00		$1,015.54		$9.60
Class Y
Actual		$1,000.00		$982.30		$4.47
Hypothetical (5% return before expenses)		$1,000.00		$1,020.56		$4.56

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


LOOMIS SAYLES INTERNATIONAL BOND FUND	BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID DURING PERIOD* 4/1/2013 – 9/30/2013
Class A
Actual		$1,000.00		$1,002.20		$5.27
Hypothetical (5% return before expenses)		$1,000.00		$1,019.80		$5.32
Class C
Actual		$1,000.00		$999.50		$9.02
Hypothetical (5% return before expenses)		$1,000.00		$1,016.04		$9.10
Class Y
Actual		$1,000.00		$1,003.80		$4.02
Hypothetical (5% return before expenses)		$1,000.00		$1,021.06		$4.05

Expenses are equal to the Fund's annualized expense ratio (after waiver/reimbursement): 1.05%, 1.80% and 0.80% for Class A, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

| 20


LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND	BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID DURING PERIOD* 4/1/2013 – 9/30/2013
Class A
Actual		$1,000.00		$989.10		$4.14
Hypothetical (5% return before expenses)		$1,000.00		$1,020.91		$4.20
Class B
Actual		$1,000.00		$986.20		$7.87
Hypothetical (5% return before expenses)		$1,000.00		$1,017.15		$7.99
Class C
Actual		$1,000.00		$985.40		$7.86
Hypothetical (5% return before expenses)		$1,000.00		$1,017.15		$7.99
Class Y
Actual		$1,000.00		$991.20		$2.85
Hypothetical (5% return before expenses)		$1,000.00		$1,022.21		$2.89

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.83%, 1.58%, 1.58% and 0.57% 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 (183), divided by 365 (to reflect the half-year period).

21 |

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

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

| 22

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

With respect to each Fund, the Board concluded that the Fund’s performance or other relevant factors supported the renewal of the Agreement relating to that Fund. In the case of the Loomis Sayles High Income Fund, the performance of which lagged that of a relevant peer group median and/or category median for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Agreements. These factors included the following: (1) that the underperformance

23 |

was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Adviser that was reasonable and consistent with the Fund’s investment objective and policies and (2) that the Fund’s performance, although lagging in certain periods, was competitive when compared to its relevant performance benchmark and peer group.

The costs of the services to be provided and profits to be realized by the Adviser and its affiliates from their respective relationships with the Funds. The Trustees considered the fees charged to the Funds for advisory services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and also by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Adviser to comparable accounts (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage and the greater regulatory costs associated with the management of mutual fund assets. In evaluating each fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund, as well as the need for the Adviser to offer competitive compensation and to expend additional resources as the Funds grow in size. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps for various funds in the fund family. They noted that all of the Funds in this report have expense caps in place, and the Trustees considered the amounts waived or reimbursed by the Adviser under these caps for each Fund whose current expenses are above the cap. The Trustees noted that certain Funds had advisory fee rates that were above the median of a peer group of funds. The Trustees considered the factors which management believed justified such relatively higher fees. These factors varied from Fund to Fund, but included one or more of the following: (1) the Fund’s advisory fee rate was not significantly above its peer group median; and (2) the Fund’s net expense ratio was near or at the peer group median. The Trustees considered management’s proposals to institute lower expense caps and revised management fee schedules for the Loomis Sayles Core Plus Bond Fund and the Loomis Sayles Limited Term Government and Agency Fund that will reduce their advisory fees and add an additional breakpoint to each of these Fund’s advisory fees.

| 24

The Trustees also considered the compensation directly or indirectly received or to be received by the Adviser and its affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Adviser’s and its affiliates’ relationships with the Funds, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser compensation or profitability were issues and the performance of the relevant Funds, the expense levels of the Funds, whether the Adviser had implemented breakpoints and/or expense caps with respect to such Funds.

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense waivers or caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense waivers or caps for certain funds. Management explained that a number of factors are taken into account in considering the possible implementation of breakpoints or an expense cap for a fund, including, among other things, factors such as a fund’s assets, the projected growth of a fund, projected profitability and a fund’s fees and performance. With respect to economies of scale, the Trustees noted that the Loomis Sayles Core Plus Bond Fund and the Loomis Sayles Limited Term Government and Agency Fund are subject to breakpoints in their respective advisory fees. The Trustees further noted that each of the Funds was subject to an expense cap or waiver, and that management had proposed to reduce the expense caps of the Loomis Sayles Core Plus Bond Fund and the Loomis Sayles Limited Term Government and Agency Fund and to add an additional breakpoint to each of these Fund’s advisory fees. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

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

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

Whether each Fund has operated in accordance with its investment objective and the Fund’s record of compliance with its investment restrictions, and the compliance

25 |

programs of the Funds and the Adviser. They also considered the compliance-related resources the Adviser and its affiliates were providing to the Funds.

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

| 26

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund


Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 94.2% of Net Assets
	Non-Convertible Bonds — 94.1%
		ABS Car Loan — 1.2%
$	2,355,000	AmeriCredit Automobile Receivables Trust, Series 2013-2, Class B, 1.190%, 5/08/2018	$	2,338,628
	1,860,000	AmeriCredit Automobile Receivables Trust, Series 2013-2, Class C, 1.790%, 3/08/2019		1,830,647
	1,950,000	Avis Budget Rental Car Funding AESOP LLC, Series 2012-3A, Class A, 2.100%, 3/20/2019, 144A		1,944,725
	1,535,000	Avis Budget Rental Car Funding AESOP LLC, Series 2013-1A, Class B, 2.620%, 9/20/2019, 144A		1,501,904
	211,139	Centre Point Funding LLC, Series 2010-1A, Class 1, 5.430%, 7/20/2016, 144A		219,166
	3,385,000	Santander Drive Auto Receivables Trust, Series 2012-4, Class C, 2.940%, 12/15/2017		3,451,485
	2,090,000	Santander Drive Auto Receivables Trust, Series 2012-5, Class C, 2.700%, 8/15/2018		2,103,163
	2,875,000	Santander Drive Auto Receivables Trust, Series 2012-6, Class C, 1.940%, 3/15/2018		2,854,196

				16,243,914

		ABS Home Equity — 0.5%
	474,020	Chase Mortgage Finance Corp., Series 2007-A1, Class 2A3, 2.719%, 2/25/2037(b)		461,825
	368,005	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 5.115%, 2/25/2035(b)		375,998
	6,662,126	Sequoia Mortgage Trust, Series 2013-5, Class A1, 2.500%, 5/25/2043, 144A		5,955,294

				6,793,117

		ABS Other — 0.8%
	1,775,000	DSC Floorplan Master Owner Trust, Series 2011-1, Class A, 3.910%, 3/15/2016, 144A		1,787,489
	8,615,000	Springleaf Funding Trust, Series 2013-BA, Class A, 3.920%, 1/16/2023, 144A		8,485,775

				10,273,264

		Aerospace & Defense — 0.3%
	2,370,000	Bombardier, Inc., 5.750%, 3/15/2022, 144A		2,352,225
	1,480,000	Bombardier, Inc., 7.500%, 3/15/2018, 144A		1,661,300

				4,013,525

		Airlines — 0.3%
	3,285,000	Continental Airlines Pass Through Certificates, Series 2012-2, Class A, 4.000%, 4/29/2026		3,178,238
	1,101,737	Continental Airlines Pass Through Trust, Series 2010-1, Class A, 4.750%, 7/12/2022		1,165,087

				4,343,325

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Automotive — 2.1%
$	1,300,000	Ford Motor Credit Co. LLC, 2.875%, 10/01/2018	$	1,299,722
	7,885,000	Ford Motor Credit Co. LLC, 5.000%, 5/15/2018		8,638,419
	8,420,000	Ford Motor Credit Co. LLC, 6.625%, 8/15/2017(c)		9,702,433
	4,900,000	General Motors Financial Co., Inc., 6.750%, 6/01/2018		5,426,750
	2,290,000	Hyundai Capital Services, Inc., 3.500%, 9/13/2017, 144A		2,380,824

				27,448,148

		Banking — 5.9%
	6,000,000	Ally Financial, Inc., 6.250%, 12/01/2017		6,416,088
	8,150,000	Banco Santander Brasil S.A., 4.625%, 2/13/2017, 144A		8,394,500
	3,950,000	Banco Santander Chile, 3.875%, 9/20/2022, 144A		3,651,672
	12,345,000	Bangkok Bank PCL, 3.300%, 10/03/2018, 144A		12,370,431
	5,015,000	Bank of America Corp., MTN, 5.000%, 5/13/2021(c)		5,386,266
	6,665,000	BBVA Banco Continental S.A., 3.250%, 4/08/2018, 144A		6,515,038
	3,795,000	Citigroup, Inc., 4.050%, 7/30/2022		3,685,761
	1,405,000	Goldman Sachs Group, Inc. (The), 5.750%, 1/24/2022		1,557,643
	1,355,000	Goldman Sachs Group, Inc. (The), 6.000%, 6/15/2020		1,538,594
	3,555,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		3,710,126
	3,035,000	Goldman Sachs Group, Inc. (The), 7.500%, 2/15/2019		3,667,096
	2,890,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		3,405,880
	6,090,000	Morgan Stanley, 5.750%, 1/25/2021		6,760,564
	630,000	Morgan Stanley, GMTN, 5.500%, 1/26/2020		697,135
	660,000	Morgan Stanley, GMTN, 5.500%, 7/28/2021		721,831
	2,530,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018		2,937,221
	6,220,000	PKO Finance AB, 4.630%, 9/26/2022, 144A		6,106,485

				77,522,331

		Chemicals — 2.0%
	7,355,000	Braskem America Finance Co., 7.125%, 7/22/2041, 144A		6,693,050
	4,375,000	Methanex Corp., 3.250%, 12/15/2019		4,300,082
	575,000	Methanex Corp., 5.250%, 3/01/2022		596,446
	5,360,000	Mexichem SAB de CV, 6.750%, 9/19/2042, 144A		4,984,800
	1,380,000	Olin Corp., 5.500%, 8/15/2022		1,373,100
	4,190,000	PolyOne Corp., 5.250%, 3/15/2023, 144A		3,959,550
	840,000	RPM International, Inc., 3.450%, 11/15/2022		785,549
	3,685,000	RPM International, Inc., 6.125%, 10/15/2019		4,196,301

				26,888,878

		Collateralized Mortgage Obligations — 0.3%
	3,530,000	FHLMC Multifamily Structured Pass Through Certificates, Series K704, Class A2, 2.412%, 8/25/2018		3,603,230

		Commercial Mortgage-Backed Securities — 4.1%
	108,119	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2007-2, Class A2, 5.634%, 4/10/2049(b)		109,391
	1,670,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2007-2, Class A4, 5.793%, 4/10/2049(b)		1,869,238
	292,880	Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A2, 5.846%, 6/11/2040(b)		297,325

See accompanying notes to financial statements.

| 28

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Commercial Mortgage-Backed Securities — continued
$	1,000,000	Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.336%, 12/10/2049(b)	$	1,139,571
	100,333	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD2, Class A2, 5.408%, 1/15/2046		100,459
	2,500,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C2, Class A3, 5.542%, 1/15/2049		2,769,635
	3,500,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 5.953%, 9/15/2039(b)		3,892,165
	1,865,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		2,082,851
	5,790,000	Credit Suisse Mortgage Capital Certificates, Series 2008-C1, Class A3, 6.252%, 2/15/2041(b)		6,559,068
	424,923	Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4, 6.056%, 7/10/2038(b)		467,175
	705,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4, 5.736%, 12/10/2049		791,855
	8,235,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/2039		9,111,698
	9,285,000	GS Mortgage Securities Corp. II, Series 2007-GG10, Class A4, 5.993%, 8/10/2045(b)		10,298,968
	3,000,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP9, Class A3, 5.336%, 5/15/2047		3,298,632
	2,300,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-C1, Class A4, 5.716%, 2/15/2051		2,556,130
	365,000	Morgan Stanley Capital I, Series 2007-HQ12, Class A5, 5.760%, 4/12/2049(b)		394,959
	1,900,000	Morgan Stanley Capital I, Series 2007-HQ13, Class A3, 5.569%, 12/15/2044		2,053,575
	2,930,000	Morgan Stanley Capital I, Series 2007-IQ14, Class A4, 5.692%, 4/15/2049		3,255,312
	305,000	Morgan Stanley Capital I, Series 2007-T27, Class A4, 5.816%, 6/11/2042(b)		344,584
	1,175,000	Morgan Stanley Capital I, Series 2008-T29, Class A4, 6.459%, 1/11/2043(b)		1,366,119
	1,000,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/2048		1,097,868

				53,856,578

		Consumer Cyclical Services — 0.2%
	2,165,000	Service Corp International, 5.375%, 1/15/2022, 144A		2,064,869

		Consumer Products — 0.4%
	1,110,000	Avon Products, Inc., 4.600%, 3/15/2020		1,151,063
	3,620,000	Whirlpool Corp., MTN, 4.850%, 6/15/2021		3,842,384

				4,993,447

		Diversified Manufacturing — 0.8%
	1,200,000	Crane Co., 6.550%, 11/15/2036		1,294,145
	2,075,000	Fibria Overseas Finance Ltd., 6.750%, 3/03/2021, 144A		2,214,025
	7,710,000	Votorantim Cimentos S.A., 7.250%, 4/05/2041, 144A		7,064,287

				10,572,457

See accompanying notes to financial statements.

29 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Electric — 1.0%
$	1,460,000	AES Corp. (The), 7.375%, 7/01/2021	$	1,606,000
	3,395,000	FirstEnergy Corp., 2.750%, 3/15/2018		3,301,858
	1,010,000	Ipalco Enterprises, Inc., 5.000%, 5/01/2018		1,047,875
	4,435,000	National Rural Utilities Cooperative Finance Corp., (fixed rate to 4/30/2023, variable rate thereafter), 4.750%, 4/30/2043		4,102,375
	3,740,000	Transelec S.A., 4.625%, 7/26/2023, 144A		3,557,496

				13,615,604

		Entertainment — 0.1%
	650,000	DreamWorks Animation SKG, Inc., 6.875%, 8/15/2020, 144A		674,375

		Financial Other — 0.5%
	7,920,000	Cielo S.A./Cielo USA, Inc., 3.750%, 11/16/2022, 144A		6,811,200

		Food & Beverage — 1.1%
	4,920,000	Alicorp SAA, 3.875%, 3/20/2023, 144A		4,354,200
	1,340,000	Cosan Luxembourg S.A., 5.000%, 3/14/2023, 144A		1,206,000
	4,050,000	Post Holdings, Inc., 7.375%, 2/15/2022		4,257,562
	1,070,000	Post Holdings, Inc., 7.375%, 2/15/2022, 144A		1,124,838
	3,555,000	Sigma Alimentos S.A. de CV, 5.625%, 4/14/2018, 144A		3,812,738

				14,755,338

		Government Owned – No Guarantee — 7.0%
	2,355,000	Abu Dhabi National Energy Co., 2.500%, 1/12/2018, 144A		2,307,900
	6,745,000	CEZ AS, 5.625%, 4/03/2042, 144A		6,819,532
	3,690,000	China Resources Gas Group Ltd., 4.500%, 4/05/2022, 144A		3,655,646
	3,560,000	CNOOC Finance 2013 Ltd., 4.250%, 5/09/2043		3,046,082
	3,255,000	CNPC General Capital Ltd., 3.950%, 4/19/2022, 144A		3,170,282
	4,945,000	Dolphin Energy Ltd., 5.500%, 12/15/2021, 144A		5,420,956
	665,000	Dubai Electricity & Water Authority, 6.375%, 10/21/2016, 144A		748,956
	1,395,000	Ecopetrol S.A., 5.875%, 9/18/2023		1,450,800
	1,600,000	Federal Home Loan Mortgage Corp., 6.250%, 7/15/2032		2,085,011
	13,680,000	Federal National Mortgage Association, 6.625%, 11/15/2030		18,285,441
	4,370,000	IPIC GMTN Ltd., 6.875%, 11/01/2041, 144A		5,265,850
	13,790,000	Pertamina Persero PT, 5.625%, 5/20/2043, 144A		10,756,200
	3,675,000	Petrobras Global Finance BV, 5.625%, 5/20/2043		3,077,776
	7,260,000	Petrobras International Finance Co., 6.750%, 1/27/2041		7,020,558
	1,210,000	Petroleos Mexicanos, 3.500%, 7/18/2018		1,225,125
	1,290,000	Qtel International Finance Ltd., 3.875%, 1/31/2028, 144A		1,128,750
	2,895,000	Qtel International Finance Ltd., 4.750%, 2/16/2021, 144A		3,046,988
	2,965,000	Qtel International Finance Ltd., 7.875%, 6/10/2019, 144A		3,617,300
	11,825,000	Tennessee Valley Authority, 3.500%, 12/15/2042		9,633,023

				91,762,176

		Healthcare — 1.1%
	1,580,000	HCA Holdings, Inc., 6.250%, 2/15/2021		1,605,675
	7,830,000	HCA, Inc., 7.500%, 2/15/2022		8,593,425
	575,000	HCA, Inc., 7.500%, 12/15/2023		586,500
	3,200,000	PerkinElmer, Inc., 5.000%, 11/15/2021		3,303,469

				14,089,069

See accompanying notes to financial statements.

| 30

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Hybrid ARMs — 0.0%
$	142,664	FHLMC, 5.926%, 11/01/2036(b)	$	153,000
	129,794	FNMA, 1.909%, 2/01/2037(b)		137,556

				290,556

		Independent Energy — 1.3%
	4,036,000	Denbury Resources, Inc., 6.375%, 8/15/2021		4,288,250
	5,035,000	Newfield Exploration Co., 5.750%, 1/30/2022		5,022,412
	2,925,000	QEP Resources, Inc., 5.250%, 5/01/2023		2,727,563
	2,410,000	Range Resources Corp., 5.000%, 8/15/2022		2,331,675
	2,605,000	SM Energy Co., 6.500%, 1/01/2023		2,657,100

				17,027,000

		Industrial Other — 2.0%
	1,360,000	Briggs & Stratton Corp., 6.875%, 12/15/2020		1,472,200
	3,620,000	CBRE Services, Inc., 5.000%, 3/15/2023		3,393,750
	9,170,000	Deluxe Corp., 6.000%, 11/15/2020		9,445,100
	4,525,000	Ferreycorp SAA, 4.875%, 4/26/2020, 144A		4,163,000
	8,290,000	Hutchison Whampoa International 11 Ltd., 4.625%, 1/13/2022, 144A		8,436,600

				26,910,650

		Media Cable — 0.7%
	3,935,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.250%, 3/15/2021, 144A		3,777,600
	2,965,000	CCO Holdings LLC/CCO Holdings Capital Corp., 6.500%, 4/30/2021		3,009,475
	499,000	Cox Communications, Inc., 5.450%, 12/15/2014		527,116
	2,825,000	Virgin Media Finance PLC, 6.375%, 4/15/2023, 144A		2,810,875

				10,125,066

		Media Non-Cable — 0.8%
	66,000,000	Grupo Televisa SAB, EMTN, 7.250%, 5/14/2043, (MXN)		4,254,773
	1,835,000	Myriad International Holdings BV, 6.000%, 7/18/2020, 144A		1,926,750
	4,284,000	Myriad International Holdings BV, 6.375%, 7/28/2017, 144A		4,648,140

				10,829,663

		Metals & Mining — 2.5%
	3,650,000	Alcoa, Inc., 6.150%, 8/15/2020		3,807,757
	1,335,000	APERAM, 7.375%, 4/01/2016, 144A		1,339,405
	1,280,000	APERAM, 7.750%, 4/01/2018, 144A		1,260,800
	6,535,000	ArcelorMittal, 7.250%, 3/01/2041		5,979,525
	485,000	ArcelorMittal, 7.500%, 10/15/2039		459,538
	4,110,000	Freeport-McMoRan Copper & Gold, Inc., 2.375%, 3/15/2018, 144A		3,972,089
	3,075,000	Goldcorp, Inc., 2.125%, 3/15/2018		2,996,308
	7,030,000	Plains Exploration & Production Co., 6.875%, 2/15/2023		7,539,675
	1,445,000	Steel Dynamics, Inc., 5.250%, 4/15/2023, 144A		1,361,912
	3,440,000	United States Steel Corp., 7.375%, 4/01/2020		3,526,000

				32,243,009

		Mortgage Related — 10.3%
	6,850,718	FHLMC, 3.000%, with various maturities from 2026 to 2043(d)		6,777,537
	26,207,953	FHLMC, 3.500%, with various maturities from 2042 to 2043(c)(d)		26,620,986
	9,652,148	FHLMC, 4.000%, with various maturities from 2041 to 2043(d)		10,094,415

See accompanying notes to financial statements.

31 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Mortgage Related — continued
$	2,308,151	FHLMC, 4.500%, with various maturities from 2034 to 2039(d)	$	2,456,042
	348,959	FHLMC, 5.000%, 8/01/2035		377,038
	4,978,673	FHLMC, 5.500%, with various maturities from 2018 to 2040(d)		5,376,526
	39,277	FHLMC, 6.000%, 6/01/2035		43,367
	9,684,103	FNMA, 3.000%, with various maturities from 2027 to 2042(d)		9,511,963
	8,849,530	FNMA, 3.500%, with various maturities from 2026 to 2042(d)		9,030,464
	15,813,237	FNMA, 4.000%, with various maturities from 2040 to 2043(d)		16,593,626
	10,710,072	FNMA, 4.500%, with various maturities from 2039 to 2041(d)		11,455,742
	8,493,108	FNMA, 5.000%, with various maturities from 2033 to 2037(d)		9,229,279
	3,294,316	FNMA, 5.500%, with various maturities from 2036 to 2038(d)		3,586,959
	1,610,207	FNMA, 6.000%, with various maturities from 2016 to 2039(d)		1,767,777
	67,726	FNMA, 6.500%, with various maturities from 2029 to 2036(d)		75,970
	67,337	FNMA, 7.000%, with various maturities in 2030(d)		75,359
	81,523	FNMA, 7.500%, with various maturities from 2024 to 2032(d)		95,454
	7,130,000	FNMA (TBA), 2.500%, 10/01/2028(e)		7,170,106
	13,340,000	FNMA (TBA), 3.500%, 11/01/2043(e)		13,535,932
	1,419,016	GNMA, 5.500%, with various maturities from 2038 to 2039(d)		1,554,794
	233,763	GNMA, 6.000%, with various maturities from 2029 to 2038(d)		258,313
	168,321	GNMA, 6.500%, with various maturities from 2028 to 2032(d)		188,768
	151,386	GNMA, 7.000%, with various maturities from 2025 to 2029(d)		169,703
	45,689	GNMA, 7.500%, with various maturities from 2025 to 2030(d)		51,861
	12,316	GNMA, 8.000%, 11/15/2029		12,594
	54,129	GNMA, 8.500%, with various maturities from 2017 to 2023(d)		55,132
	3,593	GNMA, 9.000%, with various maturities in 2016(d)		3,641
	6,062	GNMA, 11.500%, with various maturities in 2015(d)		6,100

				136,175,448

		Non-Captive Consumer — 1.5%
	1,100,000	SLM Corp., MTN, 6.000%, 1/25/2017		1,166,000
	15,785,000	SLM Corp., MTN, 6.250%, 1/25/2016		16,811,025
	30,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		31,200
	120,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		118,119
	1,135,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		1,279,712

				19,406,056

		Non-Captive Diversified — 2.0%
	6,290,000	General Electric Capital Corp., 5.300%, 2/11/2021		6,840,866
	7,290,000	International Lease Finance Corp., 3.875%, 4/15/2018		7,043,962
	3,950,000	International Lease Finance Corp., 5.750%, 5/15/2016		4,188,110
	7,215,000	International Lease Finance Corp., 6.250%, 5/15/2019		7,575,750

				25,648,688

		Oil Field Services — 2.6%
	3,165,000	Nabors Industries, Inc., 4.625%, 9/15/2021		3,181,196
	3,557,000	Nabors Industries, Inc., 5.000%, 9/15/2020		3,716,606
	5,895,000	Nabors Industries, Inc., 5.100%, 9/15/2023, 144A		5,988,041
	6,950,000	Pan American Energy LLC/Argentine Branch, 7.875%, 5/07/2021, 144A		6,950,000
	1,330,000	Rowan Cos., Inc., 7.875%, 8/01/2019		1,603,146
	2,430,000	Sidewinder Drilling, Inc., 9.750%, 11/15/2019, 144A		2,357,100

See accompanying notes to financial statements.

| 32

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Oil Field Services — continued
$	9,245,000	Transocean, Inc., 6.500%, 11/15/2020	$	10,319,694

				34,115,783

		Packaging — 0.4%
	3,275,000	Sealed Air Corp., 5.250%, 4/01/2023, 144A		3,103,062
	2,515,000	Sealed Air Corp., 6.500%, 12/01/2020, 144A		2,634,463

				5,737,525

		Paper — 1.9%
	1,785,000	Celulosa Arauco y Constitucion S.A., 4.750%, 1/11/2022		1,734,076
	3,045,000	Celulosa Arauco y Constitucion S.A., 5.000%, 1/21/2021		3,023,249
	1,111,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		1,355,778
	3,535,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		4,441,664
	5,441,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		6,885,580
	2,850,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		3,664,430
	4,015,000	Rock Tenn Co., 4.000%, 3/01/2023		3,890,025

				24,994,802

		Pharmaceuticals — 1.2%
	11,450,000	Valeant Pharmaceuticals International, 6.375%, 10/15/2020, 144A		11,908,000
	130,000	Valeant Pharmaceuticals International, 6.750%, 8/15/2021, 144A		135,200
	3,170,000	Valeant Pharmaceuticals International, 6.875%, 12/01/2018, 144A		3,352,275

				15,395,475

		Pipelines — 1.7%
	8,665,000	Energy Transfer Partners LP, 6.050%, 6/01/2041		8,696,723
	1,030,000	Energy Transfer Partners LP, 6.500%, 2/01/2042		1,087,326
	4,960,000	Kinder Morgan Finance Co. LLC, 6.000%, 1/15/2018, 144A		5,379,184
	8,510,000	Transportadora de Gas del Peru S.A., 4.250%, 4/30/2028, 144A		7,361,150

				22,524,383

		Property & Casualty Insurance — 0.3%
	3,285,000	Willis Group Holdings PLC, 5.750%, 3/15/2021		3,547,304

		Refining — 1.2%
	5,620,000	Ecopetrol S.A., 7.375%, 9/18/2043		6,083,650
	3,110,000	Phillips 66, 5.875%, 5/01/2042		3,266,766
	7,975,000	Thai Oil PCL, 4.875%, 1/23/2043, 144A		6,516,165

				15,866,581

		Retailers — 0.9%
	8,475,000	Lotte Shopping Co. Ltd., 3.375%, 5/09/2017, 144A		8,716,961
	4,205,000	SACI Falabella, 3.750%, 4/30/2023, 144A		3,731,938

				12,448,899

		Sovereigns — 2.3%
	5,598,000	Mexico Government International Bond, Series A, MTN, 6.050%, 1/11/2040		6,121,413
	5,160,000	South Africa Government International Bond, 5.875%, 9/16/2025		5,424,450
	18,775,000	Spain Government International Bond, 4.000%, 3/06/2018, 144A		19,081,032

				30,626,895

See accompanying notes to financial statements.

33 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Supermarket — 0.5%
$	6,685,000	Delhaize Group S.A., 4.125%, 4/10/2019	$	6,971,606

		Technology — 1.5%
	5,939,000	Audatex North America, Inc., 6.000%, 6/15/2021, 144A		6,057,780
	5,220,000	Baidu, Inc., 3.500%, 11/28/2022		4,773,768
	1,160,000	Brocade Communications Systems, Inc., 6.875%, 1/15/2020		1,252,800
	3,145,000	Dun & Bradstreet Corp. (The), 3.250%, 12/01/2017		3,171,824
	3,156,000	Equifax, Inc., 7.000%, 7/01/2037		3,590,821
	69,000	Motorola Solutions, Inc., 6.625%, 11/15/2037		70,190
	340,000	Motorola Solutions, Inc., 7.500%, 5/15/2025		411,930

				19,329,113

		Textile — 0.1%
	1,125,000	Wolverine World Wide, Inc., 6.125%, 10/15/2020		1,167,188

		Tobacco — 0.7%
	8,005,000	Reynolds American, Inc., 7.250%, 6/15/2037		9,258,719

		Treasuries — 19.0%
	8,770,000	Italy Buoni Poliennali Del Tesoro, 5.500%, 11/01/2022, (EUR)		12,813,658
	6,495,000(††)	Mexican Fixed Rate Bonds, Series M, 6.500%, 6/10/2021, (MXN)		51,899,315
	224,000,000	Philippine Government International Bond, 3.900%, 11/26/2022, (PHP)		5,157,556
	300,000,000	Philippine Government International Bond, 6.250%, 1/14/2036, (PHP)		7,751,493
	5,540,000	Portugal Obrigacoes do Tesouro OT, 4.950%, 10/25/2023, 144A, (EUR)		6,505,479
	19,285,000	Portugal Obrigacoes do Tesouro OT, 5.650%, 2/15/2024, 144A, (EUR)		23,506,839
	1,720,000	Spain Government Bond, 5.500%, 4/30/2021, (EUR)		2,577,627
	8,910,000	Spain Government Bond, 5.850%, 1/31/2022, (EUR)		13,519,893
	8,265,000	U.S. Treasury Bond, 2.750%, 8/15/2042		6,850,908
	4,360,000	U.S. Treasury Bond, 3.125%, 2/15/2043		3,906,290
	7,135,000	U.S. Treasury Bond, 3.625%, 8/15/2043		7,052,505
	21,435,000	U.S. Treasury Bond, 3.750%, 8/15/2041		21,790,006
	3,875,000	U.S. Treasury Bond, 3.875%, 8/15/2040		4,037,870
	77,000,000	U.S. Treasury Note, 0.375%, 6/30/2015		77,129,360
	5,260,000	U.S. Treasury Note, 1.625%, 8/15/2022		4,900,016

				249,398,815

		Wireless — 4.2%
	1,475,000	American Tower Corp., 4.700%, 3/15/2022		1,433,167
	6,225,000	eAccess Ltd., 8.250%, 4/01/2018, 144A		6,816,375
	7,205,000	SK Telecom Co. Ltd., 2.125%, 5/01/2018, 144A		7,036,900
	3,165,000	SK Telecom Co. Ltd., 6.625%, 7/20/2027, 144A		3,779,130
	3,780,000	Softbank Corp., 4.500%, 4/15/2020, 144A		3,632,580
	13,110,000	Sprint Capital Corp., 6.875%, 11/15/2028		11,700,675
	4,825,000	Verizon Communications, Inc., 3.650%, 9/14/2018		5,084,069
	13,845,000	Verizon Communications, Inc., 6.550%, 9/15/2043		15,630,133

				55,113,029

		Wirelines — 4.8%
	5,757,000	Axtel SAB de CV, (Step to 8.000% on 1/31/2014), 7.000%, 1/31/2020, 144A(f)		5,382,795
	6,810,000	Bharti Airtel International Netherlands BV, 5.125%, 3/11/2023, 144A		6,094,950

See accompanying notes to financial statements.

| 34

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Wirelines — continued
$	2,065,000	CenturyLink, Inc., 5.625%, 4/01/2020	$	2,015,956
	4,275,000	Colombia Telecomunicaciones S.A., E.S.P., 5.375%, 9/27/2022, 144A		3,933,000
	11,153,000	Embarq Corp., 7.995%, 6/01/2036		11,354,546
	1,575,000	Frontier Communications Corp., 7.875%, 1/15/2027		1,496,250
	5,050,000	Frontier Communications Corp., 8.500%, 4/15/2020		5,580,250
	2,420,000	Frontier Communications Corp., 8.750%, 4/15/2022		2,643,850
	415,000	Frontier Communications Corp., 9.000%, 8/15/2031		406,700
	1,975,000	Qwest Corp., 6.750%, 12/01/2021		2,120,994
	5,000,000	Telefonica Celular del Paraguay S.A., 6.750%, 12/13/2022, 144A		4,950,000
	4,029,000	Telefonica Emisiones SAU, 5.134%, 4/27/2020		4,125,027
	986,000	Telefonica Emisiones SAU, 5.462%, 2/16/2021		1,009,627
	6,344,000	Telemar Norte Leste S.A., 5.500%, 10/23/2020, 144A		5,582,720
	5,910,000	Windstream Corp., 7.500%, 4/01/2023		5,836,125

				62,532,790

		Total Non-Convertible Bonds (Identified Cost $1,252,095,435)		1,238,009,888


	Convertible Bonds — 0.1%
		Wirelines — 0.1%
	13,238,400	Axtel SAB de CV, (Step to 8.000% on 1/31/2014), 7.000%, 1/31/2020, 144A (MXN)(f)(g)(h)(i) (Identified Cost $1,325,671)		1,513,625

		Total Bonds and Notes (Identified Cost $1,253,421,106)		1,239,523,513


	Senior Loans — 3.4%
		Automotive — 0.5%
	1,163,947	Affinia Group Intermediate Holdings, Inc., Term Loan B2, 4.750%, 4/27/2020(b)		1,163,947
	4,840,675	TI Group Automotive Systems LLC, Term Loan B, 5.500%, 3/27/2019(b)		4,886,081

				6,050,028

		Building Materials — 0.2%
	3,000,000	ABC Supply Co., Inc., Term Loan, 3.500%, 4/16/2020(b)		2,974,500

		Chemicals — 0.3%
	4,178,005	Axalta Coating Systems US Holdings, Inc., Term Loan, 4.750%, 2/03/2020(b)		4,189,745

		Diversified Manufacturing — 0.2%
	3,033,080	Ameriforge Group, Inc., 1st Lien Term Loan, 5.000%, 12/19/2019(b)		3,033,080

		Electric — 0.4%
	5,469,981	NRG Energy, Inc., Refi Term Loan B, 2.750%, 7/02/2018(b)		5,429,394

		Entertainment — 0.1%
	1,816,000	WMG Acquisition Corp., New Term Loan, 3.750%, 7/01/2020(b)		1,806,357

		Food & Beverage — 0.2%
	2,789,980	Dole Food Company, Inc., New Term Loan, 3.753%, 4/01/2020(j)		2,785,990

See accompanying notes to financial statements.

35 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Media Cable — 0.3%
$	3,667,808	Charter Communications Operating LLC, Term Loan E, 3.000%, 7/01/2020(b)	$	3,623,941

		Media Non-Cable — 0.4%
	4,740,000	Activision Blizzard, Inc., Term Loan B, 9/11/2020(k)		4,732,084

		Metals & Mining — 0.3%
	3,650,052	Arch Coal, Inc., Term Loan B, 5.750%, 5/16/2018(b)		3,538,287

		Packaging — 0.3%
	3,797,483	Pact Group (USA), Inc., USD Term Loan B, 3.750%, 5/29/2020(b)		3,731,027

		Technology — 0.2%
	3,047,324	Alcatel-Lucent USA, Inc., USD Term Loan C, 5.750%, 1/30/2019(b)		3,067,132

		Total Senior Loans (Identified Cost $44,977,179)		44,961,565


Shares
	Preferred Stocks — 0.9%
		Banking — 0.2%
	68,182	Ally Financial, Inc., Series A, (fixed rate to 5/15/2016, variable rate thereafter), 8.500%		1,825,914
	532	Ally Financial, Inc., Series G, 7.000%, 144A		508,326

				2,334,240

		Media Cable — 0.7%
	8,945,000	NBCUniversal Enterprise, Inc., 5.250%, 144A		8,855,550

		Non-Captive Consumer — 0.0%
	5,510	SLM Corp., Series A, 6.970%		256,766

		Total Preferred Stocks (Identified Cost $11,013,801)		11,446,556


Principal Amount (‡)
	Short-Term Investments — 3.5%
$	391,159	Repurchase Agreement with State Street Bank and Trust Company, dated 9/30/2013 at 0.000% to be repurchased at $391,159 on 10/01/2013 collateralized by $445,000 Federal National Mortgage Association, 2.080% due 11/02/2022 valued at $413,483 including accrued interest (Note 2 of Notes to Financial Statements)		391,159
	45,923,204	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $45,923,204 on 10/01/2013 collateralized by $47,555,000 U.S. Treasury Note, 0.625% due 8/31/2017 valued at $46,841,675 including accrued interest (Note 2 of Notes to Financial Statements)		45,923,204

		Total Short-Term Investments (Identified Cost $46,314,363)		46,314,363


		Total Investments — 102.0% (Identified Cost $1,355,726,449)(a)		1,342,245,997
		Other assets less liabilities — (2.0)%		(25,968,780	)

		Net Assets — 100.0%	$	1,316,277,217

See accompanying notes to financial statements.

| 36

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)



(‡)	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:
	At September 30, 2013, the net unrealized depreciation on investments based on a cost of $1,359,273,876 for federal income tax purposes was as follows:
	Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	25,588,039
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(42,615,918	)

	Net unrealized depreciation	$	(17,027,879	)


(b)	Variable rate security. Rate as of September 30, 2013 is disclosed.
(c)	All or a portion of this security has been designated to cover the Fund’s obligations under open TBA transactions.
(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)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(g)	Illiquid security. At September 30, 2013, the value of this security amounted to $1,513,625 or 0.1% of net assets.
(h)	Fair valued by the Fund’s investment adviser. At September 30, 2013, the value of this security amounted to $1,513,625 or 0.1% of net assets.
(i)	Convertible dollar-indexed note. Coupon rate is based on MXN denominated par value and is payable in USD.
(j)	Variable rate security. Rate shown represents the weighted average rate of underlying contracts at September 30, 2013.
(k)	Position is unsettled. Contract rate was not determined at September 30, 2013 and does not take effect until settlement date.

144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the value of Rule 144A holdings amounted to $372,854,407 or 28.3% of net assets.
ABS	Asset-Backed Securities
ARMs	Adjustable Rate Mortgages
EMTN	Euro Medium Term Note
FHLMC	Federal Home Loan Mortgage Corp.
FNMA	Federal National Mortgage Association
GMTN	Global Medium Term Note
GNMA	Government National Mortgage Association
MTN	Medium Term Note
TBA	To Be Announced

EUR	Euro
MXN	Mexican Peso
PHP	Philippine Peso
USD	U.S. Dollar

See accompanying notes to financial statements.

37 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Core Plus Bond Fund – (continued)

Industry Summary at September 30, 2013 (Unaudited)


Treasuries	19.0	%
Mortgage Related	10.3
Government Owned – No Guarantee	7.0
Banking	6.1
Wirelines	4.9
Wireless	4.2
Commercial Mortgage-Backed Securities	4.1
Metals & Mining	2.8
Oil Field Services	2.6
Automotive	2.6
Chemicals	2.3
Sovereigns	2.3
Industrial Other	2.0
Non-Captive Diversified	2.0
Other Investments, less than 2% each	26.3
Short-Term Investments	3.5

Total Investments	102.0
Other assets less liabilities	(2.0	)

Net Assets	100.0	%

See accompanying notes to financial statements.

| 38

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund


Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 84.2% of Net Assets
	Non-Convertible Bonds — 72.5%
		ABS Home Equity — 5.9%
$	305,578	American Home Mortgage Investment Trust, Series 2005-2, Class 4A1, 1.897%, 9/25/2045(b)	$	282,761
	325,034	Banc of America Alternative Loan Trust, Series 2003-10, Class 3A1, 5.500%, 12/25/2033		329,821
	272,237	Banc of America Funding Trust, Series 2005-7, Class 3A1, 5.750%, 11/25/2035		272,910
	333,664	Banc of America Funding Corp., Series 2008-R4, Class 1A4, 0.634%, 7/25/2037, 144A(b)		204,451
	58,067	Banc of America Mortgage Securities, Inc., Series 2005-A, Class 2A1, 2.986%, 2/25/2035(b)		56,995
	190,454	Banc of America Mortgage Securities, Inc., Series 2006-B, Class 4A1, 6.420%, 11/20/2046(b)		169,602
	157,823	Citicorp Mortgage Securities Trust, Series 2006-4, Class 1A2, 6.000%, 8/25/2036		159,755
	101,657	CitiMortgage Alternative Loan Trust, Series 2006-A3, Class 1A7, 6.000%, 7/25/2036		89,464
	625,417	Countrywide Alternative Loan Trust, Series 2004-27CB, Class A1, 6.000%, 12/25/2034		602,803
	318,278	Countrywide Alternative Loan Trust, Series 2006-J4, Class 1A3, 6.250%, 7/25/2036		211,723
	824,741	Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-11, Class 3A3, 2.678%, 4/25/2035(b)		572,093
	349,304	Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-11, Class 4A1, 0.454%, 4/25/2035(b)		275,785
	161,330	Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-13, Class A3, 5.500%, 6/25/2035		159,226
	519,975	Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-HYB7, Class 2A, 2.639%, 11/20/2035(b)		483,352
	411,878	Countrywide Home Loan Mortgage Pass Through Trust, Series 2006-20, Class 1A35, 6.000%, 2/25/2037		362,095
	97,590	GMAC Mortgage Corp. Loan Trust, Series 2003-J7, Class A7, 5.000%, 11/25/2033		99,311
	431,378	GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 2A1, 3.165%, 6/19/2035(b)		423,872
	376,232	GMAC Mortgage Corp. Loan Trust, Series 2005-AR4, Class 3A1, 3.410%, 7/19/2035(b)		340,591
	485,565	GSAA Home Equity Trust, Series 2006-20, Class 1A1, 0.254%, 12/25/2046(b)		239,389
	86,681	GSR Mortgage Loan Trust, Series 2004-14, Class 3A1, 3.133%, 12/25/2034(b)		74,531
	575,000	GSR Mortgage Loan Trust, Series 2005-AR6, Class 4A5, 2.656%, 9/25/2035(b)		559,999
	200,721	GSR Mortgage Loan Trust, Series 2006-8F, Class 4A17, 6.000%, 9/25/2036		168,940
	112,271	JP Morgan Alternative Loan Trust, Series 2006-A1, Class 5A1, 4.687%, 3/25/2036(b)		92,920
	431,636	JP Morgan Mortgage Trust, Series 2005-S3, Class 1A11, 6.000%, 1/25/2036		375,304
	451,908	Lehman Mortgage Trust, Series 2005-3, Class 1A6, 0.684%, 1/25/2036(b)(c)		310,019
	188,872	Lehman Mortgage Trust, Series 2006-1, Class 3A5, 5.500%, 2/25/2036		185,594
	313,050	MASTR Adjustable Rate Mortgages Trust, Series 2005-2, Class 3A1, 2.692%, 3/25/2035(b)		254,003

See accompanying notes to financial statements.

39 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		ABS Home Equity — continued
$	580,243	MASTR Adjustable Rate Mortgages Trust, Series 2007-1, Class I2A1, 0.339%, 1/25/2047(b)	$	417,503
	539,552	Merrill Lynch Alternative Note Asset Trust, Series 2007-F1, Class 2A7, 6.000%, 3/25/2037		381,998
	118,419	New York Mortgage Trust, Series 2006-1, Class 2A2, 2.852%, 5/25/2036(b)		102,180
	477,823	Residential Accredit Loans, Inc., Series 2006-QS6, Class 1A16, 6.000%, 6/25/2036		372,403
	387,622	Residential Funding Mortgage Securities, Series 2006-S1, Class 1A3, 5.750%, 1/25/2036		390,431
	638,328	WaMu Mortgage Pass Through Certificates, Series 2006-AR19, Class 2A, 2.204%, 1/25/2047(b)		563,615
	120,511	WaMu Mortgage Pass Through Certificates, Series 2007-OA3, Class 2A1A, 0.919%, 4/25/2047(b)		107,429
	436,336	Washington Mutual Mortgage Pass-Through Certificates, Series 2006-AR6, Class 2A, 1.123%, 8/25/2046(b)		271,871

				9,964,739

		ABS Other — 0.4%
	350,000	DSC Floorplan Master Owner Trust, Series 2011-1, Class B, 8.110%, 3/15/2016, 144A		349,665
	260,819	Sierra Receivables Funding Co. LLC, Series 2011-3A, Class C, 9.310%, 7/20/2028, 144A		281,764

				631,429

		Aerospace & Defense — 1.2%
	1,500,000	Meccanica Holdings USA, Inc., 6.250%, 1/15/2040, 144A		1,252,500
	900,000	Meccanica Holdings USA, Inc., 7.375%, 7/15/2039, 144A		827,697

				2,080,197

		Airlines — 0.4%
	345,000	Continental Airlines Pass Through Certificates, Series 2012-3, Class C, 6.125%, 4/29/2018		351,038
	6,613	Continental Airlines Pass Through Trust, Series 1997-4, Class B, 6.900%, 7/02/2018		6,844
	198,446	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		210,849
	168,101	Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.903%, 10/19/2023		172,085

				740,816

		Automotive — 1.4%
	1,805,000	General Motors Co., 4.875%, 10/02/2023, 144A		1,764,387
	635,000	General Motors Co., 6.250%, 10/02/2043, 144A		625,475

				2,389,862

		Banking — 2.7%
	2,100,000	Banco Santander Brasil S.A./Cayman Islands, 8.000%, 3/18/2016, 144A, (BRL)		876,461
	375,000,000	Banco Santander Chile, 6.500%, 9/22/2020, 144A, (CLP)		733,655
	820,000	HBOS PLC, 6.000%, 11/01/2033, 144A		771,702
	900,000	Morgan Stanley, GMTN, 7.625%, 3/03/2016, (AUD)		900,359

See accompanying notes to financial statements.

| 40

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Banking — continued
	65,000	Royal Bank of Scotland Group PLC, 5.250%, (EUR)(n)	$	67,051
	740,000	Royal Bank of Scotland Group PLC, 5.500%, (EUR)(n)		781,166
	250,000	Societe General S.A., (fixed rate to 9/04/2019, variable rate thereafter), 9.375%, (EUR)(n)		388,099

				4,518,493

		Building Materials — 1.9%
	296,000	CPG Merger Sub LLC, 8.000%, 10/01/2021, 144A		300,810
	1,280,000	HD Supply, Inc., 7.500%, 7/15/2020, 144A		1,326,400
	50,000	Masco Corp., 6.500%, 8/15/2032		49,625
	345,000	Masco Corp., 7.750%, 8/01/2029		381,055
	1,000,000	Odebrecht Finance Ltd., 4.375%, 4/25/2025, 144A		867,500
	900,000	Odebrecht Finance Ltd., 8.250%, 4/25/2018, 144A, (BRL)		336,947

				3,262,337

		Chemicals — 3.3%
	1,510,000	Hercules, Inc., 6.500%, 6/30/2029		1,343,900
	850,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 8.875%, 2/01/2018		879,750
	601,350	Reichhold Industries, Inc., 9.000% (11.000% PIK), 5/08/2017, 144A(d)(e)		463,040
	635,000	TPC Group, Inc., 8.750%, 12/15/2020, 144A		649,287
	1,600,000	Tronox Finance LLC, 6.375%, 8/15/2020		1,584,000
	600,000	U.S. Coatings Acquisition, Inc./Flash Dutch 2 BV, 7.375%, 5/01/2021, 144A		627,000

				5,546,977

		Collateralized Mortgage Obligations — 0.0%
	78,305	MASTR Adjustable Rate Mortgages Trust, Series 2006-2, Class 3A1, 2.875%, 1/25/2036(b)		73,614

		Commercial Mortgage-Backed Securities — 1.4%
	1,690,000	GS Mortgage Securities Corp. II, Series 2007-GG10, Class AM, 5.993%, 8/10/2045(b)		1,652,075
	125,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class AM, 5.464%, 1/15/2049		125,637
	525,000	Morgan Stanley Capital I Trust, Series 2007-HQ12, Class AM, 5.760%, 4/12/2049(b)		557,389

				2,335,101

		Consumer Cyclical Services — 0.9%
	615,000	ServiceMaster Co. (The), 7.000%, 8/15/2020		581,175
	1,095,000	ServiceMaster Co. (The), 7.450%, 8/15/2027		876,000

				1,457,175

		Consumer Products — 1.1%
	2,040,000	Visant Corp., 10.000%, 10/01/2017		1,897,200

		Electric — 1.0%
	15,993	AES Red Oak LLC, Series A, 8.540%, 11/30/2019		16,872
	617,000	Enel SpA, (fixed rate to 9/24/2023, variable rate thereafter), 8.750%, 9/24/2073, 144A		624,289
	819,294	Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 11.250% (12.250% PIK), 12/01/2018, 144A(d)		540,734

See accompanying notes to financial statements.

41 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Electric — continued
$	455,000	Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 10.000%, 12/01/2020	$	479,457

				1,661,352

		Entertainment — 0.1%
	151,000	DreamWorks Animation SKG, Inc., 6.875%, 8/15/2020, 144A		156,663

		Environmental — 0.2%
	255,000	ADS Waste Holdings, Inc., 8.250%, 10/01/2020, 144A		269,025

		Food & Beverage — 0.5%
	1,800,000	BRF S.A., 7.750%, 5/22/2018, 144A, (BRL)		643,640
	600,000	Cosan Luxembourg S.A., 9.500%, 3/14/2018, 144A, (BRL)		237,558

				881,198

		Gaming — 0.5%
	740,000	MGM Resorts International, 6.750%, 10/01/2020		777,000

		Healthcare — 2.4%
	465,000	DaVita HealthCare Partners, Inc., 5.750%, 8/15/2022		459,769
	170,000	HCA, Inc., 7.050%, 12/01/2027		162,775
	640,000	HCA, Inc., 7.500%, 12/15/2023		652,800
	470,000	HCA, Inc., 7.690%, 6/15/2025		481,163
	480,000	HCA, Inc., 8.360%, 4/15/2024		516,000
	820,000	HCA, Inc., MTN, 7.580%, 9/15/2025		832,300
	515,000	HCA, Inc., MTN, 7.750%, 7/15/2036		504,700
	635,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		538,162

				4,147,669

		Home Construction — 4.4%
	845,000	Beazer Homes USA, Inc., 9.125%, 6/15/2018		887,250
	1,200,000	Corp GEO SAB de CV, 8.875%, 3/27/2022, 144A(f)		168,000
	1,625,000	Desarrolladora Homex SAB de CV, 9.750%, 3/25/2020, 144A(g)		390,000
	750,000	K. Hovnanian Enterprises, Inc., 5.000%, 11/01/2021		660,000
	500,000	K. Hovnanian Enterprises, Inc., 9.125%, 11/15/2020, 144A		541,250
	1,210,000	KB Home, 7.250%, 6/15/2018		1,302,262
	3,135,000	Pulte Group, Inc., 6.000%, 2/15/2035(h)		2,696,100
	495,000	Pulte Group, Inc., 6.375%, 5/15/2033		441,788
	70,000	Standard Pacific Corp., 8.375%, 1/15/2021		78,750
	200,000	Urbi Desarrollos Urbanos SAB de CV, 9.500%, 1/21/2020, 144A(g)		34,000
	1,100,000	Urbi Desarrollos Urbanos SAB de CV, 9.750%, 2/03/2022, 144A(g)		187,000

				7,386,400

		Independent Energy — 2.6%
	1,140,000	Connacher Oil and Gas Ltd., 8.500%, 8/01/2019, 144A		815,100
	115,000	Halcon Resources Corp., 8.875%, 5/15/2021		117,875
	10,000	Halcon Resources Corp., 9.250%, 2/15/2022, 144A		10,400
	685,000	Halcon Resources Corp., 9.750%, 7/15/2020		724,387
	220,000	MEG Energy Corp., 6.375%, 1/30/2023, 144A		215,600
	4,400,000	OGX Austria GmbH, 8.375%, 4/01/2022, 144A(f)		704,000
	1,000,000	OGX Austria GmbH, 8.500%, 6/01/2018, 144A		160,000
	810,000	SandRidge Energy, Inc., 7.500%, 3/15/2021		818,100

See accompanying notes to financial statements.

| 42

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Independent Energy — continued
$	200,000	SandRidge Energy, Inc., 7.500%, 2/15/2023	$	198,000
	675,000	SandRidge Energy, Inc., 8.125%, 10/15/2022		681,750

				4,445,212

		Local Authorities — 0.8%
	1,085,000	Autonomous Community of Madrid Spain, 4.300%, 9/15/2026, 144A, (EUR)		1,294,803

		Lodging — 0.1%
	180,000	Royal Caribbean Cruises Ltd., 7.500%, 10/15/2027		189,900

		Media Cable — 0.8%
	685,000	Nara Cable Funding II Ltd., 8.500%, 3/01/2020, 144A, (EUR)		1,051,808
	200,000	Numericable Finance & Co. SCA, 8.750%, 2/15/2019, 144A, (EUR)		305,744

				1,357,552

		Media Non-Cable — 1.3%
	335,000	Clear Channel Communications, Inc., 4.900%, 5/15/2015		314,062
	1,230,000	Clear Channel Communications, Inc., 5.500%, 9/15/2014		1,208,475
	50,000	Intelsat Luxembourg S.A., 6.750%, 6/01/2018, 144A		51,875
	335,000	Intelsat Luxembourg S.A., 7.750%, 6/01/2021, 144A		346,725
	230,000	Intelsat Luxembourg S.A., 8.125%, 6/01/2023, 144A		242,650

				2,163,787

		Metals & Mining — 4.4%
	2,395,000	ArcelorMittal, 7.250%, 3/01/2041		2,191,425
	985,000	Barminco Finance Pty Ltd., 9.000%, 6/01/2018, 144A		898,813
	495,000	Barrick Gold Corp., 3.850%, 4/01/2022		437,774
	515,000	Essar Steel Algoma, Inc., 9.375%, 3/15/2015, 144A		486,675
	780,000	Essar Steel Algoma, Inc., 9.875%, 6/15/2015, 144A		612,300
	660,000	Inmet Mining Corp., 7.500%, 6/01/2021, 144A		676,500
	200,000	Murray Energy Corp., 8.625%, 6/15/2021, 144A		200,500
	2,375,000	United States Steel Corp., 6.650%, 6/01/2037		1,941,562

				7,445,549

		Non-Captive Consumer — 2.2%
	540,000	Provident Funding Associates LP/PFG Finance Corp., 6.750%, 6/15/2021, 144A		542,700
	1,230,000	SLM Corp., 5.500%, 1/25/2023		1,126,171
	1,110,000	Springleaf Finance Corp., 7.750%, 10/01/2021, 144A		1,151,625
	445,000	Springleaf Finance Corp., 8.250%, 10/01/2023, 144A		462,800
	445,000	Springleaf Finance Corp., Series J, MTN, 6.900%, 12/15/2017		465,025

				3,748,321

		Non-Captive Diversified — 0.7%
	65,000	CIT Group, Inc., 5.000%, 8/15/2022		63,538
	70,000	CIT Group, Inc., 5.000%, 8/01/2023		67,772
	585,000	Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 7.375%, 10/01/2017		612,056
	435,000	Oxford Finance LLC/Oxford Finance Co-Issuer, Inc., 7.250%, 1/15/2018, 144A		444,787

				1,188,153

		Oil Field Services — 1.9%
	730,000	Basic Energy Services, Inc., 7.750%, 10/15/2022		706,275

See accompanying notes to financial statements.

43 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Oil Field Services — continued
$	1,745,000	Edgen Murray Corp., 8.750%, 11/01/2020, 144A	$	1,771,175
	113,000	Hercules Offshore, Inc., 7.500%, 10/01/2021, 144A		113,000
	655,000	Hercules Offshore, Inc., 8.750%, 7/15/2021, 144A		694,300

				3,284,750

		Packaging — 0.4%
	755,000	Sealed Air Corp., 6.875%, 7/15/2033, 144A		698,375

		Pharmaceuticals — 1.4%
	1,540,000	Valeant Pharmaceuticals International, 6.375%, 10/15/2020, 144A		1,601,600
	530,000	Valeant Pharmaceuticals International, 7.250%, 7/15/2022, 144A		564,450
	145,000	VPII Escrow Corp., 6.750%, 8/15/2018, 144A		155,150
	70,000	VPII Escrow Corp., 7.500%, 7/15/2021, 144A		75,425

				2,396,625

		Property & Casualty Insurance — 0.5%
	786,000	Hockey Merger Sub 2, Inc., 7.875%, 10/01/2021, 144A		786,983

		Retailers — 1.2%
	40,000	Dillard’s, Inc., 7.000%, 12/01/2028		40,400
	435,000	Dillard’s, Inc., 7.750%, 7/15/2026		471,975
	205,000	Dillard’s, Inc., 7.750%, 5/15/2027		219,350
	35,000	Dillard’s, Inc., 7.875%, 1/01/2023		38,850
	1,440,000	Toys R Us, Inc., 7.375%, 10/15/2018		1,242,000

				2,012,575

		Sovereigns — 0.8%
	1,050,000	Republic of Brazil, 8.500%, 1/05/2024, (BRL)		428,044
	2,250,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		1,012,668

				1,440,712

		Supermarkets — 1.0%
	205,000	New Albertson’s, Inc., 7.450%, 8/01/2029		164,513
	1,135,000	New Albertson’s, Inc., 7.750%, 6/15/2026		925,025
	935,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		673,200

				1,762,738

		Supranational — 0.5%
	2,000,000	European Bank for Reconstruction & Development, EMTN, 9.000%, 4/28/2014, (BRL)		901,412

		Technology — 3.1%
	2,500,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		2,112,500
	1,930,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		1,611,550
	450,000	First Data Corp., 10.625%, 6/15/2021, 144A		456,750
	960,000	Freescale Semiconductor, Inc., 8.050%, 2/01/2020		1,010,400

				5,191,200

		Textile — 1.3%
	2,605,000	Jones Group, Inc. (The), 6.125%, 11/15/2034		2,018,875
	175,000	Jones Group, Inc./Apparel Group Holdings/Apparel Group USA/Footwear Accessories Retail, 6.875%, 3/15/2019		178,937

				2,197,812

See accompanying notes to financial statements.

| 44

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Transportation Services — 0.1%
$	275,000	APL Ltd., 8.000%, 1/15/2024(e)	$	257,180

		Treasuries — 9.3%
	65,000	Italy Buoni Poliennali Del Tesoro, 5.000%, 8/01/2034, (EUR)		87,874
	60,000	Italy Buoni Poliennali Del Tesoro, 5.250%, 11/01/2029, (EUR)		84,225
	395,000	Italy Buoni Poliennali Del Tesoro, 5.500%, 11/01/2022, (EUR)		577,126
	55,000	Italy Buoni Poliennali Del Tesoro, 5.750%, 2/01/2033, (EUR)		81,162
	56,500(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		493,422
	184,000(††)	Mexican Fixed Rate Bonds, Series M-20, 10.000%, 12/05/2024, (MXN)		1,848,821
	229,000(††)	Mexican Fixed Rate Bonds, Series M-30, 8.500%, 11/18/2038, (MXN)		2,018,468
	10,000,000	Philippine Government International Bond, 4.950%, 1/15/2021, (PHP)		247,474
	120,000,000	Philippine Government International Bond, 6.250%, 1/14/2036, (PHP)(h)		3,100,597
	850,000	Portugal Obrigacoes do Tesouro OT, 3.850%, 4/15/2021, 144A, (EUR)		958,198
	1,525,000	Portugal Obrigacoes do Tesouro OT, 4.950%, 10/25/2023, 144A, (EUR)		1,790,768
	2,525,000	Spain Government Bond, 4.650%, 7/30/2025, (EUR)(h)		3,469,677
	20,391,050	Uruguay Government International Bond, 4.375%, 12/15/2028, (UYU)		994,354

				15,752,166

		Wireless — 2.8%
	6,000,000	America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)		429,115
	900,000	Bakrie Telecom Pte Ltd., 11.500%, 5/07/2015, 144A		252,000
	4,501,000	Sprint Capital Corp., 6.875%, 11/15/2028(h)		4,017,142
	70,000	Sprint Capital Corp., 8.750%, 3/15/2032		71,138

				4,769,395

		Wirelines — 5.6%
	332,000	Axtel SAB de CV, (Step to 8.000% on 1/31/2014), 7.000%, 1/31/2020, 144A(i)		310,420
	2,590,000	CenturyLink, Inc., 7.650%, 3/15/2042		2,305,100
	1,145,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		1,021,912
	130,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		118,300
	650,000	Cincinnati Bell, Inc., 8.750%, 3/15/2018		686,562
	300,000	Eircom Finance Ltd., 9.250%, 5/15/2020, 144A, (EUR)		405,855
	60,000,000	Empresa de Telecomunicaniones de Bogota, 7.000%, 1/17/2023, 144A, (COP)		26,754
	735,000	Frontier Communications Corp., 9.000%, 8/15/2031		720,300
	605,000	Level 3 Communications, Inc., 8.875%, 6/01/2019		647,350
	1,090,000	Level 3 Financing, Inc., 7.000%, 6/01/2020		1,100,900
	350,000	Portugal Telecom International Finance BV, EMTN, 4.500%, 6/16/2025, (EUR)		417,625
	420,000	Telecom Italia Capital S.A., 6.000%, 9/30/2034		345,430
	85,000	Telecom Italia Capital S.A., 6.375%, 11/15/2033		73,008
	35,000	Telecom Italia Capital S.A., 7.200%, 7/18/2036		32,521
	85,000	Telecom Italia Capital S.A., 7.721%, 6/04/2038		81,815
	1,125,000	Telefonica Emisiones SAU, 7.045%, 6/20/2036		1,194,072

				9,487,924

		Total Non-Convertible Bonds (Identified Cost $126,497,719)		122,950,371


	Convertible Bonds — 11.7%
		Automotive — 0.6%
	530,000	Ford Motor Co., 4.250%, 11/15/2016		1,047,081

See accompanying notes to financial statements.

45 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Construction Machinery — 1.5%
$	640,000	Ryland Group, Inc. (The), 1.625%, 5/15/2018	$	930,000
	1,325,000	Trinity Industries, Inc., 3.875%, 6/01/2036		1,607,390

				2,537,390

		Healthcare — 0.2%
	255,000	Hologic, Inc., Series 2010, (accretes to principal after 12/15/2016), 2.000%, 12/15/2037(i)		286,875

		Home Construction — 2.1%
	565,000	KB Home, 1.375%, 2/01/2019		573,828
	70,000	Lennar Corp., 2.000%, 12/01/2020, 144A		90,300
	530,000	Lennar Corp., 2.750%, 12/15/2020, 144A		898,350
	530,000	Lennar Corp., 3.250%, 11/15/2021, 144A		879,800
	925,000	Standard Pacific Corp., 1.250%, 8/01/2032		1,141,219

				3,583,497

		Independent Energy — 0.8%
	800,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		786,000
	550,000	Cobalt International Energy, Inc., 2.625%, 12/01/2019		581,625

				1,367,625

		Metals & Mining — 1.0%
	1,235,000	Peabody Energy Corp., 4.750%, 12/15/2066		991,088
	165,000	Steel Dynamics, Inc., 5.125%, 6/15/2014		180,056
	440,000	United States Steel Corp., 2.750%, 4/01/2019		487,025

				1,658,169

		Non-Captive Diversified — 0.1%
	155,000	Jefferies Group LLC, 3.875%, 11/01/2029		162,459

		Oil Field Services — 0.2%
	200,000	Hornbeck Offshore Services, Inc., 1.500%, 9/01/2019		258,500

		Pharmaceuticals — 1.0%
	315,000	Gilead Sciences, Inc., Series D, 1.625%, 5/01/2016		872,156
	285,000	Mylan, Inc., 3.750%, 9/15/2015		825,966

				1,698,122

		REITs – Mortgage — 0.6%
	310,000	iStar Financial, Inc., 3.000%, 11/15/2016		386,531
	630,000	Redwood Trust, Inc., 4.625%, 4/15/2018		663,863

				1,050,394

		Retailers — 0.5%
	658,000	priceline.com, Inc., 0.350%, 6/15/2020, 144A		688,844
	85,000	priceline.com, Inc., 1.000%, 3/15/2018		109,225

				798,069

		Technology — 3.1%
	1,355,000	Ciena Corp., 0.875%, 6/15/2017		1,379,559
	145,000	Ciena Corp., 3.750%, 10/15/2018, 144A		213,603
	390,000	Micron Technology, Inc., Series B, 1.875%, 8/01/2031		731,006
	1,185,000	Micron Technology, Inc., Series C, 2.375%, 5/01/2032		2,266,313
	80,000	SanDisk Corp., 1.500%, 8/15/2017		105,800

See accompanying notes to financial statements.

| 46

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Technology — continued
$	355,000	Xilinx, Inc., 2.625%, 6/15/2017	$	575,988

				5,272,269

		Wirelines — 0.0%
	379,000	Axtel SAB de CV, (Step to 8.000% on 1/31/2014), 7.000%, 1/31/2020, 144A, (MXN)(e)(i)(j)(k)		43,333

		Total Convertible Bonds (Identified Cost $15,905,075)		19,763,783

		Total Bonds and Notes (Identified Cost $142,402,794)		142,714,154


	Senior Loans — 1.9%
		Automotive — 0.3%
	472,625	TI Group Automotive Systems LLC, Term Loan B, 5.500%, 3/27/2019(b)		477,058

		Consumer Products — 0.0%
	9,896	Visant Holding Corp., Term Loan B, 5.250%, 12/22/2016(b)		9,580

		Healthcare — 0.3%
	428,925	Apria Healthcare Group I, Term Loan, 6.750%, 4/05/2020(b)		431,777

		Media Non-Cable — 0.1%
	264,392	SuperMedia, Inc., Exit Term Loan, 11.600%, 12/30/2016(b)		204,639

		Oil Field Services — 0.3%
	568,257	Frac Tech International LLC, Term Loan B, 8.500%, 5/06/2016(b)		556,608

		Other Utility — 0.2%
	30,000	Power Team Services LLC, Delayed Draw Term Loan, 3.250%, 5/06/2020(m)		29,512
	234,413	Power Team Services LLC, 1st Lien Term Loan, 4.250%, 5/06/2020(b)		230,603
	95,000	Power Team Services LLC, 2nd Lien Term Loan, 8.250%, 11/06/2020(b)		94,763

				354,878

		Wirelines — 0.7%
	1,243,750	Fairpoint Communications, Inc., Refi Term Loan, 7.500%, 2/14/2019(b)		1,251,698
	25,000	Integra Telecom, Inc., 2nd Lien Term Loan, 9.750%, 2/21/2020(b)		25,605

				1,277,303

		Total Senior Loans (Identified Cost $3,351,594)		3,311,843


Shares
	Preferred Stocks — 5.7%
	Convertible Preferred Stocks — 3.6%
		Automotive — 1.2%
	39,522	General Motors Co., Series B, 4.750%(h)		1,982,028

		Independent Energy — 0.3%
	390	Chesapeake Energy Corp., 5.000%		36,231
	245	Chesapeake Energy Corp., Series A, 5.750%, 144A		270,265

See accompanying notes to financial statements.

47 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)


Shares		Description	Value (†)
		Independent Energy — continued
	2,521	SandRidge Energy, Inc., 7.000%	$	251,470

				557,966

		Metals & Mining — 0.9%
	21,500	ArcelorMittal, 6.000%		462,035
	54,082	Cliffs Natural Resources, Inc., 7.000%		1,069,201

				1,531,236

		Non-Captive Diversified — 0.1%
	94	Bank of America Corp., Series L, 7.250%		101,520

		Pipelines — 0.7%
	20,675	El Paso Energy Capital Trust I, 4.750%		1,160,488

		REITs – Diversified — 0.2%
	6,611	Weyerhaeuser Co., Series A, 6.375%		350,251

		REITs – Mortgage — 0.2%
	8,025	iStar Financial, Inc., Series J, 4.500%		444,425

		Total Convertible Preferred Stocks (Identified Cost $5,757,904)		6,127,914


	Non-Convertible Preferred Stocks — 2.1%
		Banking — 1.8%
	78,785	Ally Financial, Inc., Series A, (fixed rate to 5/15/2016, variable rate thereafter), 8.500%		2,109,862
	965	Ally Financial, Inc., Series G, 7.000%, 144A		922,058

				3,031,920

		Non-Captive Diversified — 0.3%
	12,925	iStar Financial, Inc., Series E, 7.875%		305,288
	7,500	iStar Financial, Inc., Series F, 7.800%		175,725
	550	iStar Financial, Inc., Series G, 7.650%		12,650

				493,663

		Total Non-Convertible Preferred Stocks (Identified Cost $3,279,861)		3,525,583

		Total Preferred Stocks (Identified Cost $9,037,765)		9,653,497


	Common Stocks — 2.4%
		Automobiles — 0.5%
	53,720	Ford Motor Co.		906,256

		Chemicals — 0.1%
	1,087	Ashland, Inc.		100,526

		Diversified Telecommunication Services — 0.0%
	68	FairPoint Communications, Inc.(f)		649
	593	Hawaiian Telcom Holdco, Inc.(f)		15,774

				16,423

See accompanying notes to financial statements.

| 48

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)


Shares		Description	Value (†)
		Gas Utilities — 0.7%
	17,600	National Fuel Gas Co.	$	1,210,176

		Household Durables — 0.5%
	46,500	KB Home		837,930

		Oil, Gas & Consumable Fuels — 0.3%
	14,882	Kinder Morgan, Inc.		529,353

		Pharmaceuticals — 0.2%
	6,875	Merck & Co., Inc.		327,319

		Trading Companies & Distributors — 0.1%
	2,696	United Rentals, Inc.(f)		157,150

		Total Common Stocks (Identified Cost $2,778,432)		4,085,133


	Warrants — 0.1%
	10,360	FairPoint Communications, Inc., Expiration on 1/24/2018 at $48.81(e)(f)(j)		—
	22,512	Kinder Morgan, Inc., Expiration on 5/25/2017 at $40.00(f)		111,885

		Total Warrants (Identified Cost $29,892)		111,885


Principal Amount (‡)
	Short-Term Investments — 4.4%
$	14,071	Repurchase Agreement with State Street Bank and Trust Company, dated 9/30/2013 at 0.000% to be repurchased at $14,071 on 10/01/2013 collateralized by $20,000 Federal National Mortgage Association, 2.080% due 11/02/2022 valued at $18,584 including accrued interest (Note 2 of Notes to Financial Statements)		14,071
	7,123,593	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $7,123,593 on 10/01/2013 collateralized by $7,090,000 U.S. Treasury Note, 2.625% due 7/31/2014 valued at $7,267,250 including accrued interest (Note 2 of Notes to Financial Statements)		7,123,593
	420,000	U.S. Treasury Bill, 0.071%, 01/30/2014(l)		419,989

		Total Short-Term Investments (Identified Cost $7,557,564)		7,557,653


		Total Investments — 98.7% (Identified Cost $165,158,041)(a)		167,434,165
		Other assets less liabilities — 1.3%		2,144,991

		Net Assets — 100.0%	$	169,579,156


	(‡)	Principal Amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 100.

See accompanying notes to financial statements.

49 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)



(a)	Federal Tax Information:
	At September 30, 2013, the net unrealized appreciation on investments based on a cost of $165,964,509 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	$	13,648,394
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(12,178,738	)

	Net unrealized appreciation	$	1,469,656


(b)	Variable rate security. Rate as of September 30, 2013 is disclosed.
(c)	The issuer is making partial payments with respect to principal.
(d)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities. For the period ended September 30, 2013, the issuer paid out 100% of the interest payments in-kind.
(e)	Illiquid security. At September 30, 2013, the value of these securities amounted to $763,553 or 0.5% of net assets.
(f)	Non-income producing security.
(g)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
(h)	All of this security has been designated to cover the Fund’s obligations under open forward foreign currency and futures contracts.
(i)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(j)	Fair valued by the Fund’s investment adviser. At September 30, 2013, the value of these securities amounted to $43,333 or less than 0.1% of net assets.
(k)	Convertible dollar-indexed note. Coupon rate is based on MXN denominated par value and is payable in USD.
(l)	A portion of this security has been pledged as initial margin for open futures contracts.
(m)	Unfunded loan commitment. Represents a contractual obligation for future funding at the option of the Borrower. The fund receives a stated coupon rate until the borrower draws on the loan commitment, at which time the rate will become the stated rate in the loan agreement.
(n)	Perpetual bond with no specified maturity date.

144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the value of Rule 144A holdings amounted to $41,394,061 or 24.4% of net assets.
ABS	Asset-Backed Securities
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MTN	Medium Term Note
PIK	Payment-in-Kind
REITs	Real Estate Investment Trusts

AUD	Australian Dollar
BRL	Brazilian Real
CLP	Chilean Peso
COP	Colombian Peso
EUR	Euro
MXN	Mexican Peso
PHP	Philippine Peso
USD	U.S. Dollar
UYU	Uruguayan Peso

See accompanying notes to financial statements.

| 50

Portfolio of Investments – as of September 30, 2013

Loomis Sayles High Income Fund – (continued)

At September 30, 2013, the Fund had the following open forward foreign currency contracts:


Contract to Buy/Sell¹	Delivery Date		Currency	Units of Currency		Notional Value		Unrealized Appreciation (Depreciation)
Buy		10/31/2013	Euro		1,530,000	$	2,070,009	$	42,038
Sell		10/31/2013	Euro		10,230,000		13,840,649		(314,769	)

Total								$	(272,731	)

¹Counterparty is Barclays Bank PLC.

At September 30, 2013, open short futures contracts were as follows:


Financial Futures	Expiration Date		Contracts		Notional Value		Unrealized Appreciation (Depreciation)
30 Year U.S. Treasury Bond		12/19/2013		7	$	933,625	$	(11,224	)

Industry Summary at September 30, 2013 (Unaudited)


Treasuries	9.3	%
Home Construction	6.5
Wirelines	6.3
Metals & Mining	6.3
Technology	6.2
ABS Home Equity	5.9
Banking	4.5
Independent Energy	3.7
Automotive	3.5
Chemicals	3.4
Healthcare	2.9
Wireless	2.8
Pharmaceuticals	2.6
Oil Field Services	2.4
Non-Captive Consumer	2.2
Other Investments, less than 2% each	25.8
Short-Term Investments	4.4

Total Investments	98.7
Other assets less liabilities (including open forward foreign currency contracts and futures contracts)	1.3

Net Assets	100.0	%

See accompanying notes to financial statements.

51 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles International Bond Fund


Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 97.1% of Net Assets
	Non-Convertible Bonds — 96.9%
		Australia — 1.3%
	185,000	New South Wales Treasury Corp., 6.000%, 5/01/2020, (AUD)	$	192,212

		Belgium — 3.3%
	100,000	Anheuser-Busch InBev NV, EMTN, 1.250%, 3/24/2017, (EUR)		136,330
	130,000	Belgium Government Bond, 2.250%, 6/22/2023, (EUR)		170,967
	120,000	Belgium Government Bond, 8.000%, 3/28/2015, (EUR)		180,817

				488,114

		Brazil — 1.0%
	350,000	Republic of Brazil, 8.500%, 1/05/2024, (BRL)		142,681

		Canada — 2.2%
	100,000	Ford Auto Securitization Trust, Series 2013-R1A, Class A2, 1.676%, 9/15/2016, 144A, (CAD)		97,242
	90,000	Province of Quebec Canada, EMTN, 3.375%, 6/20/2016, (EUR)(b)		130,741
	95,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		101,397

				329,380

		Finland — 3.4%
	120,000	Finland Government Bond, 1.500%, 4/15/2023, 144A, (EUR)		155,199
	220,000	Finland Government Bond, 4.000%, 7/04/2025, 144A, (EUR)(b)		349,590

				504,789

		France — 4.5%
	50,000	AXA S.A., EMTN, (fixed rate to 4/16/2020, variable rate thereafter), 5.250%, 4/16/2040, (EUR)		71,187
	100,000	Bouygues S.A., 3.641%, 10/29/2019, (EUR)		146,310
	320,000	French Treasury Note BTAN, 1.750%, 2/25/2017, (EUR)		447,761

				665,258

		Germany — 7.5%
	275,000	Bundesrepublik Deutschland, 1.750%, 7/04/2022, (EUR)(b)		378,358
	30,000	Bundesrepublik Deutschland, 3.250%, 1/04/2020, (EUR)		46,177
	450,000	Bundesrepublik Deutschland, 4.250%, 7/04/2017, (EUR)(b)		694,743

				1,119,278

		Ireland — 1.2%
	100,000	WPP PLC, 6.000%, 4/04/2017, (GBP)		182,600

		Italy — 7.1%
	50,000	Enel Finance International S.A., EMTN, 5.625%, 8/14/2024, (GBP)		81,052
	290,000	Italy Buoni Poliennali Del Tesoro, 4.000%, 2/01/2037, (EUR)(b)		346,997
	400,000	Italy Buoni Poliennali Del Tesoro, 5.000%, 3/01/2022, (EUR)		571,606
	45,000	Telecom Italia Finance S.A., EMTN, 7.750%, 1/24/2033, (EUR)		66,025

				1,065,680

		Japan — 25.0%
	80,000,000	Japan Finance Organization for Municipalities, 1.900%, 6/22/2018, (JPY)		879,007
	43,000,000	Japan Government Five Year Bond, 0.700%, 6/20/2014, (JPY)		439,431

See accompanying notes to financial statements.

| 52

Portfolio of Investments – as of September 30, 2013

Loomis Sayles International Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Japan — continued
	78,900,000	Japan Government Ten Year Bond, 1.700%, 12/20/2016, (JPY)	$	842,618
	40,500,000	Japan Government Ten Year Bond, 1.700%, 9/20/2017, (JPY)(b)		436,715
	26,000,000	Japan Government Thirty Year Bond, 2.000%, 9/20/2040, (JPY)		282,582
	76,000,000	Japan Government Twenty Year Bond, 1.900%, 12/20/2028, (JPY)		850,986

				3,731,339

		Jersey — 1.0%
	100,000	Heathrow Funding Ltd., 4.375%, 1/25/2019, (EUR)		148,437

		Korea — 1.4%
	1,000,000	Export-Import Bank of Korea, 3.000%, 5/22/2018, 144A, (NOK)		161,261
	2,300,000	Export-Import Bank of Korea, 4.000%, 11/26/2015, 144A, (PHP)		54,436

				215,697

		Luxembourg — 0.3%
	50,000	ArcelorMittal, 6.000%, 3/01/2021		51,250

		Malaysia — 1.2%
	580,000	Malaysia Government Bond, 3.314%, 10/31/2017, (MYR)		176,588

		Mexico — 3.5%
	65,500(††)	Mexican Fixed Rate Bonds, Series M, 6.500%, 6/10/2021, (MXN)		523,388

		Netherlands — 3.1%
	50,000	BMW Finance NV, 2.375%, 1/24/2023, (EUR)		67,434
	55,000	Netherlands Government Bond, 2.250%, 7/15/2022, 144A, (EUR)		76,068
	135,000	Netherlands Government Bond, 4.500%, 7/15/2017, 144A, (EUR)		207,828
	75,000	Volkswagen International Finance NV, EMTN, 1.875%, 5/15/2017, (EUR)		104,061

				455,391

		New Zealand — 0.9%
	155,000	New Zealand Government Bond, 6.000%, 4/15/2015, (NZD)		134,437

		Norway — 2.0%
	10,000	Eksportfinans ASA, 2.000%, 9/15/2015		9,750
	1,590,000	Norway Government Bond, 4.250%, 5/19/2017, (NOK)		285,464

				295,214

		Philippines — 0.8%
	5,000,000	Philippine Government International Bond, 4.950%, 1/15/2021, (PHP)		123,737

		Poland — 2.0%
	400,000	Poland Government Bond, 4.750%, 4/25/2017, (PLN)		132,987
	150,000	Poland Government International Bond, EMTN, 2.625%, 5/12/2015, (CHF)(b)		171,438

				304,425

		Spain — 2.6%
	50,000	Iberdrola Finanzas SAU, EMTN, 6.000%, 7/01/2022, (GBP)		88,130
	35,000	Spain Government Bond, 4.200%, 1/31/2037, (EUR)		41,934
	125,000	Spain Government Bond, 4.300%, 10/31/2019, (EUR)		176,480
	75,000	Telefonica Emisiones SAU, 5.462%, 2/16/2021		76,797

				383,341

See accompanying notes to financial statements.

53 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles International Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United Kingdom — 7.1%
	90,000	Barclays Bank PLC, EMTN, 5.750%, 9/14/2026, (GBP)	$	154,113
	50,000	British Sky Broadcasting Group PLC, EMTN, 6.000%, 5/21/2027, (GBP)		94,331
	105,000	British Telecommunications PLC, 5.750%, 12/07/2028, (GBP)		194,540
	50,000	BSKYB Finance UK PLC, 5.750%, 10/20/2017, (GBP)		92,232
	100,000	FCE Bank PLC, EMTN, 4.825%, 2/15/2017, (GBP)		175,088
	40,000	United Kingdom Treasury, 1.750%, 1/22/2017, (GBP)(b)		66,394
	70,000	United Kingdom Treasury, 4.250%, 3/07/2036, (GBP)(b)		128,636
	40,000	United Kingdom Treasury, 4.750%, 12/07/2038, (GBP)		79,399
	40,000	United Kingdom Treasury, 5.000%, 3/07/2025, (GBP)(b)		78,506

				1,063,239

		United States — 14.5%
	25,000	Ally Financial, Inc., 3.500%, 7/18/2016		25,250
	35,000	Ally Financial, Inc., 4.750%, 9/10/2018		34,844
	130,000	AmeriCredit Automobile Receivables Trust, Series 2013-3, Class C, 2.380%, 6/10/2019		129,199
	100,000	BA Credit Card Trust, Series 04A1, 4.500%, 6/17/2016, (EUR)		137,082
	50,000	Capital One Multi-Asset Execution Trust, Series 2004-B7, Class B7, 0.710%, 8/17/2017, (EUR)(c)		67,313
	50,000	Cargill, Inc., EMTN, 5.375%, 3/02/2037, (GBP)		90,834
	45,000	Continental Resources, Inc., 4.500%, 4/15/2023		44,156
	45,000	HCA, Inc., 8.360%, 4/15/2024		48,375
	150,000	HSBC Finance Corp., EMTN, 4.500%, 6/14/2016, (EUR)(b)		220,783
	50,000	International Lease Finance Corp., 5.875%, 8/15/2022		49,250
	45,000	iStar Financial, Inc., 3.875%, 7/01/2016		45,113
	50,000	JPMorgan Chase & Co., EMTN, REGS, 3.875%, 9/23/2020, (EUR)		74,470
	50,000	JPMorgan Chase & Co., EMTN, 4.375%, 1/30/2014, (EUR)		68,525
	50,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		72,378
	15,000	Morgan Stanley, 5.375%, 11/14/2013, (GBP)		24,389
	50,000	Pfizer, Inc., 4.550%, 5/15/2017, (EUR)		76,071
	75,000	Sprint Communications, Inc., 6.000%, 11/15/2022		69,000
	450,000	U.S. Treasury Note, 0.125%, 7/31/2014		450,105
	25,000	U.S. Treasury Note, 0.250%, 11/30/2013(d)		25,008
	45,000	United Continental Holdings, Inc., 6.375%, 6/01/2018		45,788
	45,000	US Airways Pass Through Trust, Series 2013-1, Class 1A, 3.950%, 5/15/2027		41,625
	17,000	Verizon Communications, Inc., 2.500%, 9/15/2016		17,522
	24,000	Verizon Communications, Inc., 6.400%, 9/15/2033		26,652
	25,000	Verizon Communications, Inc., 6.550%, 9/15/2043		28,223
	100,000	Wells Fargo & Co., 4.125%, 11/03/2016, (EUR)		147,640
	30,000	Whiting Petroleum Corp., 5.000%, 3/15/2019		30,075
	50,000	Zurich Finance USA, Inc., EMTN, (fixed rate to 6/15/2015, variable rate thereafter), 4.500%, 6/15/2025, (EUR)		70,348

				2,160,018

		Total Non-Convertible Bonds (Identified Cost $15,150,432)		14,456,493

See accompanying notes to financial statements.

| 54

Portfolio of Investments – as of September 30, 2013

Loomis Sayles International Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
	Convertible Bonds — 0.2%
		United States — 0.2%
$	20,000	Intel Corp., 2.950%, 12/15/2035 (Identified Cost $20,907)	$	21,650

		Total Bonds and Notes (Identified Cost $15,171,339)		14,478,143


Shares
	Preferred Stocks — 0.4%
		United States — 0.4%
	449	Dominion Resources, Inc., Series A, 6.125%		23,950
	305	Dominion Resources, Inc., Series B, 6.000%		16,302
	326	iStar Financial, Inc., Series J, 4.500%		18,054

		Total Preferred Stocks (Identified Cost $54,870)		58,306


Principal Amount (‡)
	Short-Term Investments — 1.7%
$	259,970	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $ 259,970 on 10/01/2013 collateralized by $265,000 U.S. Treasury Note, 0.375% due 11/15/2015 valued at $265,373 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $259,970)		259,970


		Total Investments — 99.2% (Identified Cost $15,486,179)(a)		14,796,419
		Other assets less liabilities — 0.8%		116,150

		Net Assets — 100.0%	$	14,912,569


	(‡)	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:
		At September 30, 2013, the net unrealized depreciation on investments based on a cost of $15,680,469 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	$	259,187
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(1,143,237	)

		Net unrealized depreciation	$	(884,050	)

See accompanying notes to financial statements.

55 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles International Bond Fund – (continued)



	(b)			All or a portion of this security has been designated to cover the Fund’s obligations under open forward foreign currency and futures contracts.
	(c)			Variable rate security. Rate as of September 30, 2013 is disclosed.
	(d)			All of this security has been pledged as initial margin for open futures contracts.

	144A			All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the value of Rule 144A holdings amounted to $1,101,624 or 7.4% of net assets.
	EMTN			Euro Medium Term Note
	REITs			Real Estate Investment Trusts

	AUD			Australian Dollar
	BRL			Brazilian Real
	CAD			Canadian Dollar
	CHF			Swiss Franc
	EUR			Euro
	GBP			British Pound
	JPY			Japanese Yen
	MXN			Mexican Peso
	MYR			Malaysian Ringgit
	NOK			Norwegian Krone
	NZD			New Zealand Dollar
	PHP			Philippine Peso
	PLN			Polish Zloty

At September 30, 2013, the Fund had the following open forward foreign currency contracts:


Contract to Buy/Sell	Delivery Date		Currency	Units of Currency		Notional Value		Unrealized Appreciation (Depreciation)
Buy¹		10/02/2013	Brazilian Real		330,000	$	148,897	$	1,312
Sell¹		10/02/2013	Brazilian Real		330,000		148,897		(9,312	)
Sell¹		11/04/2013	Brazilian Real		330,000		147,737		(1,233	)
Buy³		12/18/2013	Canadian Dollar		515,694		499,685		4,348
Buy¹		12/18/2013	Euro		215,000		290,921		5,670
Sell¹		12/23/2013	Philippine Peso		900,000		20,667		181
Buy²		12/11/2013	South Korean Won		104,700,000		96,997		2,271
Buy¹		12/11/2013	South Korean Won		575,000,000		532,693		11,860
Sell²		12/11/2013	South Korean Won		104,700,000		96,996		(1,021	)
Buy¹		12/24/2013	Thai Baht		4,300,000		136,793		(1,169	)
Sell¹		12/24/2013	Thai Baht		4,300,000		136,793		(1,743	)
Buy²		12/17/2013	Turkish Lira		224,000		109,394		(2,149	)
Sell²		12/17/2013	Turkish Lira		224,000		109,394		190

Total								$	9,205

See accompanying notes to financial statements.

| 56

Portfolio of Investments – as of September 30, 2013

Loomis Sayles International Bond Fund – (continued)

At September 30, 2013, the Fund had the following open forward cross currency contracts:


Settlement Date	Deliver/Units of Currency		Receive/Units of Currency		Unrealized Appreciation (Depreciation)
10/03/2013	Japanese Yen	11,104,440	Thai Baht²	3,700,000	$	5,308
10/03/2013	Japanese Yen	4,813,984	Singapore Dollar¹	62,000		445
12/04/2013	Japanese Yen	8,430,870	Malaysian Ringgit²	285,000		1,281
12/04/2013	Malaysian Ringgit	905,000	Japanese Yen²	26,432,063		(7,525	)
10/03/2013	Singapore Dollar	62,000	Japanese Yen¹	4,874,260		168
12/24/2013	South Korean Won	187,000,000	Japanese Yen²	16,958,682		(479	)
12/24/2013	South Korean Won	32,000,000	Japanese Yen²	2,938,745		292
10/03/2013	Thai Baht	3,700,000	Japanese Yen²	11,877,370		2,556

Total					$	2,046

¹Counterparty is Barclays Bank PLC.

²Counterparty is Credit Suisse International.

³Counterparty is UBS AG.

At September 30, 2013, open long futures contracts were as follows:


Financial Futures	Expiration Date		Contracts	Notional Value		Unrealized Appreciation (Depreciation)
German Euro BOBL		12/06/2013	5	$	841,744	$	13,655

Industry Summary at September 30, 2013 (Unaudited)


Treasuries	59.7	%
Government Guaranteed	5.9
Banking	4.0
Media Non-Cable	2.4
Automotive	2.4
Wirelines	2.3
Local Authorities	2.2
Sovereigns	2.1
Other Investments, less than 2% each	16.5
Short-Term Investments	1.7

Total Investments	99.2
Other assets less liabilities (including open forward foreign currency contracts and futures contracts)	0.8

Net Assets	100.0	%

See accompanying notes to financial statements.

57 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles International Bond Fund – (continued)

Currency Exposure Summary at September 30, 2013 (Unaudited)


Euro	37.9	%
Japanese Yen	25.0
United States Dollar	10.7
British Pound	10.3
Mexican Peso	3.5
Other, less than 2% each	11.8

Total Investments	99.2
Other assets less liabilities (including open forward foreign currency contracts and futures contracts)	0.8

Net Assets	100.0	%

See accompanying notes to financial statements.

| 58

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Limited Term Government and Agency Fund


Principal Amount		Description	Value (†)
	Bonds and Notes — 98.7% of Net Assets
		ABS Car Loan — 2.4%
$	2,200,000	Avis Budget Rental Car Funding AESOP LLC, Series 2012-3A, Class A, 2.100%, 3/20/2019, 144A	$	2,194,049
	910,000	Credit Acceptance Auto Loan Trust, Series 2012-2A, Class A, 1.520%, 3/16/2020, 144A		912,724
	1,275,000	Credit Acceptance Auto Loan Trust, Series 2013-1A, Class A, 1.210%, 10/15/2020, 144A		1,274,634
	1,653,436	First Investors Auto Owner Trust, Series 2012-2A, Class A2, 1.470%, 5/15/2018, 144A		1,663,311
	787,370	First Investors Auto Owner Trust, Series 2013-1A, Class A2, 0.900%, 10/15/2018, 144A		784,372
	1,526,885	Prestige Auto Receivables Trust, Series 2013-1A, Class A2, 1.090%, 2/15/2018, 144A		1,529,136
	2,000,000	Santander Drive Auto Receivables Trust, Series 2013-4, Class A3, 1.110%, 12/15/2017		2,003,204
	392,110	SNAAC Auto Receivables Trust, Series 2012-1A, Class A, 1.780%, 6/15/2016, 144A		393,171
	2,697,462	Tidewater Auto Receivables Trust, Series 2012-AA, Class A2, 1.210%, 8/15/2015, 144A		2,696,992
	3,000,000	Tidewater Auto Receivables Trust, Series 2012-AA, Class A3, 1.990%, 4/15/2019, 144A		3,009,462

				16,461,055

		ABS Credit Card — 1.0%
	3,220,000	GE Capital Credit Card Master Note Trust, Series 2012-7, Class A, 1.760%, 9/15/2022		3,082,397
	3,400,000	World Financial Network Credit Card Master Trust, Series 2012-A, Class A, 3.140%, 1/17/2023		3,504,842

				6,587,239

		ABS Home Equity — 0.1%
	347,840	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 5.115%, 2/25/2035(b)		355,395
	230,755	Residential Funding Mortgage Securities II, Series 2002-HI5, Class A7, 6.200%, 1/25/2028(b)		236,703

				592,098

		ABS Other — 0.6%
	3,000,000	Ally Master Owner Trust, Series 2012-5, Class A, 1.540%, 9/15/2019		2,963,874
	1,250,000	CCG Receivables Trust, Series 2013-1, Class A2, 1.050%, 8/14/2020, 144A		1,250,029

				4,213,903

		ABS Student Loan — 0.2%
	1,332,312	Montana Higher Education Student Assistance Corp., Series 2012-1, Class A1, 0.780%, 9/20/2022(b)		1,336,443

		Collateralized Mortgage Obligations — 34.3%
	209,414	Federal Home Loan Mortgage Corp., REMIC, Series 1500, Class FD, 1.740%, 5/15/2023(b)		217,037
	138,447	Federal Home Loan Mortgage Corp., REMIC, Series 1552, Class I, 1.890%, 8/15/2023(b)		144,069

See accompanying notes to financial statements.

59 |

Portfolio of Investments – as of September 30, 2013

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


Principal Amount		Description	Value (†)
		Collateralized Mortgage Obligations — continued
$	494,681	Federal Home Loan Mortgage Corp., REMIC, Series 2131, Class ZB, 6.000%, 3/15/2029	$	554,394
	847,785	Federal Home Loan Mortgage Corp., REMIC, Series 2646, Class FM, 0.582%, 11/15/2032(b)		848,426
	3,804,878	Federal Home Loan Mortgage Corp., REMIC, Series 2874, Class BC, 5.000%, 10/15/2019		4,074,587
	5,851,004	Federal Home Loan Mortgage Corp., REMIC, Series 2931, Class DE, 4.000%, 2/15/2020		6,174,348
	3,631,000	Federal Home Loan Mortgage Corp., REMIC, Series 2978, Class JG, 5.500%, 5/15/2035		4,025,000
	3,510,000	Federal Home Loan Mortgage Corp., REMIC, Series 3036, Class NE, 5.000%, 9/15/2035		3,829,835
	6,238,638	Federal Home Loan Mortgage Corp., REMIC, Series 3057, Class PE, 5.500%, 11/15/2034		6,522,383
	9,502,333	Federal Home Loan Mortgage Corp., REMIC, Series 3412, Class AY, 5.500%, 2/15/2038		10,416,913
	4,014,850	Federal Home Loan Mortgage Corp., REMIC, Series 3561, Class W, 4.733%, 6/15/2048(b)		4,304,376
	5,019,863	Federal Home Loan Mortgage Corp., REMIC, Series 3620, Class AT, 4.642%, 12/15/2036(b)		5,352,746
	390,100	Federal Home Loan Mortgage Corp., REMIC, Series 3802, Class BA, 4.500%, 11/15/2028		406,708
	157,734	Federal National Mortgage Association, REMIC, Series 1992-162, Class FB, 2.120%, 9/25/2022(b)		165,061
	131,424	Federal National Mortgage Association, REMIC, Series 1994-42, Class FD, 2.070%, 4/25/2024(b)		137,385
	3,110,293	Federal National Mortgage Association, REMIC, Series 2005-33, Class QD, 5.000%, 1/25/2034		3,263,182
	2,323,070	Federal National Mortgage Association, REMIC, Series 2005-100, Class BQ, 5.500%, 11/25/2025		2,576,842
	5,491,175	Federal National Mortgage Association, REMIC, Series 2008-86, Class LA, 4.057%, 8/25/2038(b)		5,449,348
	116,870	Federal National Mortgage Association, REMIC, Series G93-19, Class FD, 2.140%, 4/25/2023(b)		121,889
	2,057,636	FHLMC, 2.715%, 3/01/2038(b)		2,194,478
	1,183,924	FHLMC, 2.823%, 12/01/2034(b)		1,261,889
	1,628,906	FHLMC, 5.181%, 11/01/2038(b)		1,729,023
	6,000,000	FHLMC Multifamily Structured Pass Through Certificates, Series K006, Class A2, 4.251%, 1/25/2020		6,541,164
	4,305,000	FHLMC Multifamily Structured Pass Through Certificates, Series K014, Class A2, 3.871%, 4/25/2021		4,567,226
	3,535,000	FHLMC Multifamily Structured Pass Through Certificates, Series K703, Class A2, 2.699%, 5/25/2018		3,658,135
	700,000	FHLMC Multifamily Structured Pass Through Certificates, Series K704, Class A2, 2.412%, 8/25/2018		714,522
	2,590,000	FHLMC Multifamily Structured Pass Through Certificates, Series K706, Class A2, 2.323%, 10/25/2018		2,624,115

See accompanying notes to financial statements.

| 60

Portfolio of Investments – as of September 30, 2013

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


Principal Amount		Description	Value (†)
		Collateralized Mortgage Obligations — continued
$	7,910,000	FHLMC Multifamily Structured Pass Through Certificates, Series K708, Class A2, 2.130%, 1/25/2019	$	7,913,251
	34,370,000	FHLMC Multifamily Structured Pass Through Certificates, Series K711, Class A2, 1.730%, 7/25/2019		33,444,141
	16,343,859	FHLMC Multifamily Structured Pass Through Certificates, Series KF01, Class A, 0.529%, 4/25/2019(b)		16,349,089
	7,192,381	FNMA, 2.217%, 9/01/2037(b)		7,613,879
	1,903,508	FNMA, 2.270%, 9/01/2036(b)		2,017,989
	5,222,685	FNMA, 2.314%, 11/01/2033(b)		5,488,912
	599,924	FNMA, 2.424%, 8/01/2035(b)		639,230
	2,533,024	FNMA, 2.530%, 4/01/2037(b)		2,687,981
	5,804,229	FNMA, 2.587%, 7/01/2037(b)		6,200,562
	1,141,332	FNMA, 2.596%, 10/01/2033(b)		1,211,082
	2,727,553	FNMA, 4.738%, 8/01/2038(b)		2,931,376
	857,804	Government National Mortgage Association, Series 1998-19, Class ZB, 6.500%, 7/20/2028		984,356
	3,772,942	Government National Mortgage Association, Series 2012-124, Class HT, 7.214%, 7/20/2032(b)		4,354,639
	8,322,427	Government National Mortgage Association, Series 2012-H29, Class HF, 0.686%, 10/20/2062(b)		8,264,836
	13,260,000	Government National Mortgage Association, Series 2013-52, Class KX, 4.914%, 8/16/2051(b)		15,008,145
	7,988,727	Government National Mortgage Association, Series 2013-H02, Class GF, 0.686%, 12/20/2062(b)		7,939,500
	5,108,432	Government National Mortgage Association, Series 2013-H10, Class FA, 0.586%, 3/20/2063(b)		5,044,300
	15,330,000	Government National Mortgage Association, Series 2013-H22, Class FT, 0.770%, 4/20/2063(b)		15,279,698
	781,103	NCUA Guaranteed Notes, Series 2010-A1, Class A, 0.524%, 12/07/2020(b)		781,931
	1,603,000	NCUA Guaranteed Notes, Series 2010-C1, Class A2, 2.900%, 10/29/2020		1,665,052
	1,481,910	NCUA Guaranteed Notes, Series 2010-R1, Class 1A, 0.624%, 10/07/2020(b)		1,490,401
	5,625,654	NCUA Guaranteed Notes, Series 2010-R3, Class 1A, 0.734%, 12/08/2020(b)		5,653,782
	124,116	NCUA Guaranteed Notes, Series 2010-R3, Class 2A, 0.734%, 12/08/2020(b)		125,280

				234,964,493

		Commercial Mortgage-Backed Securities — 15.1%
	1,780,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2007-2, Class A4, 5.793%, 4/10/2049(b)		1,992,361
	375,000	Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2007-5, Class A4, 5.492%, 2/10/2051		410,837
	1,445,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		1,584,165
	3,490,000	CGBAM Commercial Mortgage Trust, Series 2013-BREH, Class A2, 1.282%, 5/15/2030, 144A(b)		3,488,178
	1,470,000	Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A4, 6.336%, 12/10/2049(b)		1,675,169
	3,200,500	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/2049		3,537,980

See accompanying notes to financial statements.

61 |

Portfolio of Investments – as of September 30, 2013

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


Principal Amount		Description	Value (†)
		Commercial Mortgage-Backed Securities — continued
$	1,139,501	COBALT CMBS Commercial Mortgage Trust, Series 2007-C2, Class A3, 5.484%, 4/15/2047	$	1,267,811
	1,135,000	Commercial Mortgage Pass Through Certificates, Series 2012-CR2, Class A4, 3.147%, 8/15/2045		1,104,554
	2,625,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C2, Class A3, 5.542%, 1/15/2049		2,908,117
	5,270,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		5,885,589
	3,000,000	Credit Suisse Mortgage Capital Certificates, Series 2008-C1, Class A3, 6.252%, 2/15/2041(b)		3,398,481
	1,000,000	Del Coronado Trust, Series 2013-HDC, Class A, 0.983%, 3/15/2026, 144A(b)		998,187
	1,200,000	Extended Stay America Trust, Series 2013-ESFL, Class A2FL, 0.882%, 12/05/2031, 144A(b)		1,193,591
	5,000,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/2039		5,532,300
	7,778,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4, 5.736%, 12/10/2049		8,736,242
	6,840,000	GS Mortgage Securities Corp. II, Series 2013-KYO, Class A, 1.032%, 11/08/2029, 144A(b)		6,776,894
	295,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2006-CB15, Class A4, 5.814%, 6/12/2043		322,368
	2,785,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-CB18, Class A4, 5.440%, 6/12/2047		3,076,645
	5,000,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class A3, 5.420%, 1/15/2049		5,525,930
	3,500,000	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2013-JWRZ, Class A, 0.962%, 4/15/2030, 144A(b)		3,464,394
	1,659,972	LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A3, 5.430%, 2/15/2040		1,826,034
	3,039,101	LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class A3, 5.866%, 9/15/2045		3,400,298
	1,173,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-5, Class A4, 5.378%, 8/12/2048		1,286,259
	5,364,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051		5,925,949
	5,000,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-9, Class A4, 5.700%, 9/12/2049		5,596,010
	3,620,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C11, Class A2, 3.085%, 8/15/2046		3,758,418
	3,485,000	Morgan Stanley Capital I, Series 2007-HQ12, Class A5, 5.760%, 4/12/2049(b)		3,771,042
	1,500,000	Morgan Stanley Capital I, Series 2007-IQ15, Class A4, 6.107%, 6/11/2049(b)		1,680,294
	2,622,562	Motel 6 Trust, Series 2012-MTL6, Class A1, 1.500%, 10/05/2025, 144A		2,602,339
	4,410,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4, 5.572%, 10/15/2048		4,841,598
	3,775,000	Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A5, 5.342%, 12/15/2043		4,176,426
	1,450,000	WFRBS Commercial Mortgage Trust, Series 2013-C15, Class A2, 2.900%, 8/15/2046		1,489,701

				103,234,161

See accompanying notes to financial statements.

| 62

Portfolio of Investments – as of September 30, 2013

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


Principal Amount		Description	Value (†)
		Hybrid ARMs — 19.3%
$	2,166,788	FHLMC, 2.204%, 6/01/2037(b)	$	2,287,391
	6,948,454	FHLMC, 2.211%, 5/01/2037(b)		7,359,092
	2,422,734	FHLMC, 2.295%, 4/01/2036(b)		2,566,223
	3,960,038	FHLMC, 2.345%, 7/01/2033(b)		4,198,899
	2,987,614	FHLMC, 2.378%, 3/01/2036(b)		3,160,814
	989,313	FHLMC, 2.385%, 2/01/2035(b)		1,052,005
	6,586,699	FHLMC, 2.409%, 2/01/2036(b)		6,989,788
	2,087,445	FHLMC, 2.412%, 4/01/2035(b)		2,228,306
	3,082,265	FHLMC, 2.424%, 2/01/2036(b)		3,255,138
	3,392,060	FHLMC, 2.476%, 11/01/2036(b)		3,613,038
	1,125,904	FHLMC, 2.725%, 4/01/2037(b)		1,202,765
	3,475,926	FHLMC, 2.741%, 4/01/2037(b)		3,698,677
	4,694,932	FHLMC, 2.899%, 9/01/2035(b)		4,955,620
	1,414,000	FHLMC, 3.158%, 11/01/2038(b)		1,506,440
	545,148	FHLMC, 4.072%, 9/01/2038(b)		574,790
	3,357,931	FHLMC, 4.897%, 9/01/2038(b)		3,541,797
	308,001	FHLMC, 5.251%, 12/01/2037(b)		331,415
	877,930	FHLMC, 5.412%, 3/01/2037(b)		930,964
	296,079	FNMA, 1.909%, 2/01/2037(b)		313,787
	3,726,162	FNMA, 1.997%, 7/01/2035(b)		3,946,603
	1,150,811	FNMA, 2.306%, 9/01/2034(b)		1,222,610
	850,818	FNMA, 2.310%, 12/01/2034(b)		899,244
	722,330	FNMA, 2.314%, 4/01/2033(b)		765,761
	2,633,772	FNMA, 2.330%, 4/01/2034(b)		2,788,703
	2,999,421	FNMA, 2.341%, 6/01/2036(b)		3,178,000
	4,398,853	FNMA, 2.347%, 8/01/2035(b)		4,619,111
	10,073,532	FNMA, 2.356%, 10/01/2034(b)		10,713,673
	1,935,981	FNMA, 2.356%, 1/01/2036(b)		2,044,132
	7,857,127	FNMA, 2.384%, 4/01/2034(b)		8,348,535
	5,401,407	FNMA, 2.405%, 6/01/2037(b)		5,748,506
	2,445,719	FNMA, 2.412%, 6/01/2033(b)		2,560,453
	1,505,028	FNMA, 2.419%, 8/01/2034(b)		1,619,423
	3,435,869	FNMA, 2.492%, 10/01/2033(b)		3,650,779
	729,015	FNMA, 2.552%, 8/01/2033(b)		776,990
	3,008,531	FNMA, 2.557%, 4/01/2037(b)		3,189,999
	685,486	FNMA, 2.647%, 8/01/2036(b)		733,149
	6,492,040	FNMA, 2.673%, 3/01/2037(b)		6,895,166
	2,080,440	FNMA, 2.679%, 5/01/2035(b)		2,231,455
	2,041,883	FNMA, 2.695%, 2/01/2047(b)		2,173,840
	3,511,442	FNMA, 3.223%, 6/01/2035(b)		3,725,837
	6,587,814	FNMA, 5.754%, 9/01/2037(b)		7,055,779

				132,654,697

		Mortgage Related — 25.5%
	9,796,632	FHLMC, 2.388%, 3/01/2037(b)		10,383,060
	2,652,998	FHLMC, 2.409%, 9/01/2038(b)		2,813,376
	17,269,252	FHLMC, 3.000%, with various maturities from 2026 to 2027(c)		17,862,834
	1,637,653	FHLMC, 4.000%, with various maturities from 2024 to 2042(c)		1,721,881

See accompanying notes to financial statements.

63 |

Portfolio of Investments – as of September 30, 2013

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


Principal Amount		Description	Value (†)
		Mortgage Related — continued
$	1,470,458	FHLMC, 4.500%, with various maturities from 2025 to 2034(c)	$	1,555,710
	692,079	FHLMC, 5.500%, 10/01/2023		746,847
	57,207	FHLMC, 6.000%, 11/01/2019		62,483
	1,858,391	FHLMC, 6.500%, with various maturities from 2014 to 2034(c)		2,076,776
	27,574	FHLMC, 7.000%, 2/01/2016		28,648
	1,428	FHLMC, 7.500%, with various maturities from 2014 to 2026(c)		1,553
	2,460	FHLMC, 8.000%, 9/01/2015		2,568
	2,546	FHLMC, 10.000%, 7/01/2019		2,887
	40,100	FHLMC, 11.500%, with various maturities from 2015 to 2020(c)		44,404
	6,923,485	FNMA, 2.343%, 4/01/2037(b)		7,306,213
	5,663,088	FNMA, 2.406%, 7/01/2035(b)		5,972,738
	9,006,655	FNMA, 3.000%, with various maturities from 2027 to 2042(c)		9,319,943
	1,454,195	FNMA, 4.000%, with various maturities in 2019(c)		1,543,031
	3,179,126	FNMA, 4.500%, 1/01/2025		3,378,757
	4,888,529	FNMA, 5.000%, with various maturities from 2037 to 2038(c)		5,311,842
	2,285,579	FNMA, 5.500%, with various maturities from 2018 to 2033(c)		2,478,633
	4,256,965	FNMA, 6.000%, with various maturities from 2017 to 2022(c)		4,662,057
	679,932	FNMA, 6.500%, with various maturities from 2017 to 2037(c)		759,614
	29,447	FNMA, 7.000%, 12/01/2022		29,537
	166,863	FNMA, 7.500%, with various maturities from 2015 to 2032(c)		190,894
	10,024	FNMA, 8.000%, with various maturities from 2015 to 2016(c)		10,475
	5,712,717	GNMA, 1.963%, 2/20/2061(b)		5,936,158
	4,801,226	GNMA, 2.085%, 2/20/2063(b)		5,025,577
	5,379,142	GNMA, 2.355%, 3/20/2063(b)		5,719,959
	3,490,776	GNMA, 2.578%, 2/20/2063(b)		3,725,524
	4,856,384	GNMA, 4.479%, 2/20/2062		5,225,867
	4,930,852	GNMA, 4.521%, 12/20/2061		5,401,995
	2,459,153	GNMA, 4.528%, 3/20/2062		2,700,287
	7,368,617	GNMA, 4.532%, 12/20/2062		8,139,972
	2,580,427	GNMA, 4.560%, 3/20/2062		2,831,103
	12,850,769	GNMA, 4.583%, 11/20/2062		14,184,975
	1,522,464	GNMA, 4.599%, 4/20/2063		1,688,607
	4,429,947	GNMA, 4.604%, 6/20/2062		4,882,418
	1,536,899	GNMA, 4.616%, 8/20/2061		1,686,647
	1,993,984	GNMA, 4.639%, 3/20/2062		2,195,476
	8,945,554	GNMA, 4.659%, 2/20/2062		9,851,918
	2,036,241	GNMA, 4.698%, 7/20/2061		2,235,061
	8,817,323	GNMA, 4.700%, with various maturities in 2061(c)		9,685,315
	2,000,447	GNMA, 4.717%, 3/20/2061		2,190,039
	1,699,625	GNMA, 4.808%, 8/20/2062		1,875,456
	969,892	GNMA, 5.167%, 4/20/2061		1,066,326
	32,934	GNMA, 6.000%, 12/15/2031		36,848
	140,592	GNMA, 6.500%, 5/15/2031		163,942
	116,824	GNMA, 7.000%, 10/15/2028		133,130

				174,849,361

See accompanying notes to financial statements.

| 64

Portfolio of Investments – as of September 30, 2013

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


Principal Amount		Description	Value (†)
		Treasuries — 0.2%
$	1,245,000	U.S. Treasury Note, 1.875%, 4/30/2014	$	1,257,985

		Total Bonds and Notes (Identified Cost $672,076,077)		676,151,435


	Short-Term Investments — 1.7%
	11,602,796	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $11,602,796 on 10/01/2013 collateralized by $12,020,000 U.S. Treasury Note, 0.625% due 8/31/2017 valued at $11,839,700 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $11,602,796)		11,602,796

		Total Investments — 100.4% (Identified Cost $683,678,873)(a)		687,754,231
		Other assets less liabilities — (0.4)%		(2,522,236	)

		Net Assets — 100.0%	$	685,231,995


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2013, the net unrealized appreciation on investments based on a cost of $683,694,920 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	$	11,636,690
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(7,577,379	)

		Net unrealized appreciation	$	4,059,311

	(b)	Variable rate security. Rate as of September 30, 2013 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 September 30, 2013, the value of Rule 144A holdings amounted to $34,231,463 or 5.0% of net assets.
	ABS	Asset-Backed Securities
	ARMs	Adjustable Rate Mortgages
	FHLMC	Federal Home Loan Mortgage Corp.
	FNMA	Federal National Mortgage Association
	GNMA	Government National Mortgage Association
	REMIC	Real Estate Mortgage Investment Conduit

See accompanying notes to financial statements.

65 |

Portfolio of Investments – as of September 30, 2013

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

Industry Summary at September 30, 2013 (Unaudited)


Collateralized Mortgage Obligations	34.3	%
Mortgage Related	25.5
Hybrid ARMs	19.3
Commercial Mortgage-Backed Securities	15.1
ABS Car Loan	2.4
Other Investments, less than 2% each	2.1
Short-Term Investments	1.7

Total Investments	100.4
Other assets less liabilities	(0.4	)

Net Assets	100.0	%

See accompanying notes to financial statements.

| 66

Statements of Assets and Liabilities

September 30, 2013


	Core Plus Bond Fund			High Income Fund			International Bond Fund			Limited Term Government and Agency Fund
ASSETS
Investments at cost	$	1,355,726,449		$	165,158,041		$	15,486,179		$	683,678,873
Net unrealized appreciation (depreciation)		(13,480,452	)		2,276,124			(689,760	)		4,075,358

Investments at value		1,342,245,997			167,434,165			14,796,419			687,754,231
Due from brokers (Note 2)		—			280,000			—			—
Foreign currency at value (identified cost $0, $0, $137,430 and $0)		—			—			136,546			—
Receivable for Fund shares sold		4,448,067			1,051,012			2,544			1,388,652
Receivable from investment adviser (Note 6)		—			—			1,565			—
Receivable for securities sold		12,163			1,095,413			365,175			—
Receivable for delayed delivery securities sold (Note 2)		13,592,669			—			—			—
Dividends and interest receivable		15,672,800			2,404,800			166,886			3,304,959
Unrealized appreciation on forward foreign currency contracts (Note 2)		—			42,038			35,882			—
Tax reclaims receivable		227,999			5,230			—			—
Receivable for variation margin on futures contracts (Note 2)		—			438			1,823			—

TOTAL ASSETS		1,376,199,695			172,313,096			15,506,840			692,447,842

LIABILITIES
Payable for securities purchased		18,347,857			1,531,727			374,452			5,114,484
Payable for delayed delivery securities purchased (Note 2)		33,726,500			—			—			—
Payable for Fund shares redeemed		6,903,081			143,535			84,251			1,125,382
Unrealized depreciation on forward foreign currency contracts (Note 2)		—			314,769			24,631			—
Distributions payable		—			—			—			312,285
Management fees payable (Note 6)		432,911			107,001			—			231,413
Deferred Trustees’ fees (Note 6)		305,053			131,631			54,700			282,234
Administrative fees payable (Note 6)		47,467			6,058			552			24,811
Payable to distributor (Note 6d)		14,206			2,510			158			3,740
Other accounts payable and accrued expenses		145,403			496,709			55,527			121,498

TOTAL LIABILITIES		59,922,478			2,733,940			594,271			7,215,847

NET ASSETS	$	1,316,277,217		$	169,579,156		$	14,912,569		$	685,231,995

NET ASSETS CONSIST OF:
Paid-in capital	$	1,332,158,662		$	158,973,265		$	15,467,205		$	689,513,173
Undistributed (Distributions in excess of) net investment income		2,382,095			(316,940	)		(67,205	)		(594,519	)
Accumulated net realized gain (loss) on investments, futures contracts and foreign currency transactions		(4,810,603	)		8,926,236			174,800			(7,762,017	)
Net unrealized appreciation (depreciation) on investments, futures contracts and foreign currency translations		(13,452,937	)		1,996,595			(662,231	)		4,075,358

NET ASSETS	$	1,316,277,217		$	169,579,156		$	14,912,569		$	685,231,995

See accompanying notes to financial statements.

67 |

Statements of Assets and Liabilities (continued)

September 30, 2013


	Core Plus Bond Fund		High Income Fund		International Bond Fund		Limited Term Government and Agency Fund
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	436,199,023	$	45,790,748	$	8,982,779	$	355,212,046

Shares of beneficial interest		34,310,010		9,965,403		915,338		30,402,246

Net asset value and redemption price per share	$	12.71	$	4.59	$	9.81	$	11.68

Offering price per share (100/[100-maximum sales charge] of net asset value) (Note 1)	$	13.31	$	4.81	$	10.27	$	12.04

Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	1,180,466	$	385,262	$	—	$	5,930,124

Shares of beneficial interest		92,419		83,513		—		508,103

Net asset value and offering price per share	$	12.77	$	4.61	$	—	$	11.67

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	232,033,764	$	15,232,940	$	3,328,363	$	71,962,992

Shares of beneficial interest		18,243,181		3,307,859		342,240		6,154,090

Net asset value and offering price per share	$	12.72	$	4.61	$	9.73	$	11.69

Class N shares:
Net assets	$	19,247,368	$	—	$	—	$	—

Shares of beneficial interest		1,503,208		—		—		—

Net asset value, offering and redemption price per share	$	12.80	$	—	$	—	$	—

Class Y shares:
Net assets	$	627,616,596	$	108,170,206	$	2,601,427	$	252,126,833

Shares of beneficial interest		49,031,902		23,571,512		264,909		21,512,608

Net asset value, offering and redemption price per share	$	12.80	$	4.59	$	9.82	$	11.72

See accompanying notes to financial statements.

| 68

Statements of Operations

For the Year Ended September 30, 2013


	Core Plus Bond Fund			High Income Fund			International Bond Fund			Limited Term Government and Agency Fund
INVESTMENT INCOME
Interest	$	64,023,129		$	12,810,818		$	440,076		$	13,737,988
Dividends		201,329			667,117			1,088			—

		64,224,458			13,477,935			441,164			13,737,988

Expenses
Management fees (Note 6)		5,998,038			1,291,330			108,272			2,916,904
Service and distribution fees (Note 6)		4,252,851			346,163			67,566			1,771,210
Administrative fees (Note 6)		695,722			95,200			7,984			307,970
Trustees’ fees and expenses (Note 6)		75,651			33,311			21,856			57,294
Transfer agent fees and expenses (Note 6)		1,242,995			241,445			19,964			476,024
Audit and tax services fees		50,111			49,644			50,363			70,543
Custodian fees and expenses		102,913			53,526			34,815			39,180
Corporate tax expenses (Note 10)		—			—			—			224,327
Legal fees		21,261			2,950			248			29,626
Registration fees		163,740			91,391			46,889			102,867
Shareholder reporting expenses		162,253			36,578			3,566			52,396
Miscellaneous expenses		43,144			16,988			9,838			23,559

Total expenses		12,808,679			2,258,526			371,361			6,071,900
Fee/expense recovery (Note 6)		—			24,894			—			14,643
Less waiver and/or expense reimbursement (Note 6)		(8,278	)		—			(159,428	)		(19	)

Net expenses		12,800,401			2,283,420			211,933			6,086,524

Net investment income		51,424,057			11,194,515			229,231			7,651,464

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		10,029,173			10,158,421			235,643			960,423
Futures contracts		—			(1,775	)		(5,412	)		—
Foreign currency transactions		(24,182	)		(435,456	)		54,309			—
Net change in unrealized appreciation (depreciation) on:
Investments		(79,720,230	)		(6,157,229	)		(1,126,244	)		(14,157,642	)
Futures contracts		—			(11,224	)		13,655			—
Foreign currency translations		(12,231	)		(28,484	)		(10,290	)		—

Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions		(69,727,470	)		3,524,253			(838,339	)		(13,197,219	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(18,303,413	)	$	14,718,768		$	(609,108	)	$	(5,545,755	)

See accompanying notes to financial statements.

69 |

This Page Intentionally Left Blank

| 70

Statements of Changes in Net Assets


	Core Plus Bond Fund						High Income Fund
	Year Ended September 30, 2013			Year Ended September 30, 2012			Year Ended September 30, 2013			Year Ended September 30, 2012
FROM OPERATIONS:
Net investment income	$	51,424,057		$	30,039,229		$	11,194,515		$	8,987,512
Net realized gain on investments, futures contracts and foreign currency transactions		10,004,991			27,486,451			9,721,190			1,577,793
Net change in unrealized appreciation (depreciation) on investments, futures contracts and foreign currency translations		(79,732,461	)		52,784,145			(6,196,937	)		17,666,689

Net increase (decrease) in net assets resulting from operations		(18,303,413	)		110,309,825			14,718,768			28,231,994

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(22,049,388	)		(13,530,505	)		(4,012,237	)		(4,924,736	)
Class B		(57,416	)		(83,437	)		(24,416	)		(37,943	)
Class C		(9,800,300	)		(6,193,213	)		(826,420	)		(960,754	)
Class N		(139,775	)		—			—			—
Class Y		(32,556,568	)		(14,560,785	)		(7,718,674	)		(4,576,130	)
Net realized capital gains
Class A		(7,656,569	)		(4,420,850	)		(224,929	)		(5,086,896	)
Class B		(28,613	)		(45,406	)		(1,686	)		(56,566	)
Class C		(4,172,024	)		(2,475,931	)		(52,693	)		(1,334,655	)
Class Y		(10,215,543	)		(2,888,997	)		(409,949	)		(4,826,965	)

Total distributions		(86,676,196	)		(44,199,124	)		(13,271,004	)		(21,804,645	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)		28,754,694			804,488,815			(56,084,432	)		103,343,166

Net increase (decrease) in net assets		(76,224,915	)		870,599,516			(54,636,668	)		109,770,515
NET ASSETS
Beginning of the year		1,392,502,132			521,902,616			224,215,824			114,445,309

End of the year	$	1,316,277,217		$	1,392,502,132		$	169,579,156		$	224,215,824

UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME	$	2,382,095		$	5,332,135		$	(316,940	)	$	437,961

See accompanying notes to financial statements.

71 |

Statements of Changes in Net Assets (continued)

See accompanying notes to financial statements.


	International Bond Fund						Limited Term Government and Agency Fund
	Year Ended September 30, 2013			Year Ended September 30, 2012			Year Ended September 30, 2013			Year Ended September 30, 2012
FROM OPERATIONS:
Net investment income	$	229,231		$	360,175		$	7,651,464		$	8,290,284
Net realized gain on investments, futures contracts and foreign currency transactions		284,540			453,943			960,423			4,423,642
Net change in unrealized appreciation (depreciation) on investments, futures contracts and foreign currency translations		(1,122,879	)		688,866			(14,157,642	)		8,386,594

Net increase (decrease) in net assets resulting from operations		(609,108	)		1,502,984			(5,545,755	)		21,100,520

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(206,411	)		(793,528	)		(8,021,271	)		(7,335,704	)
Class B		—			—			(103,744	)		(161,039	)
Class C		(54,617	)		(546,527	)		(1,101,044	)		(1,216,984	)
Class Y		(65,554	)		(354,205	)		(5,835,575	)		(4,276,382	)
Net realized capital gains
Class A		(216,225	)		(306,969	)		(122,270	)		(98,584	)
Class B		—			—			(2,674	)		(3,508	)
Class C		(81,575	)		(237,383	)		(26,374	)		(24,502	)
Class Y		(62,926	)		(116,763	)		(83,455	)		(43,423	)
Paid-in capital
Class A		—			—			(57,173	)		—
Class B		—			—			(955	)		—
Class C		—			—			(11,573	)		—
Class Y		—			—			(40,475	)		—

Total distributions		(687,308	)		(2,355,375	)		(15,406,583	)		(13,160,126	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)		(3,307,652	)		(3,913,509	)		43,978,695			149,965,713

Net increase (decrease) in net assets		(4,604,068	)		(4,765,900	)		23,026,357			157,906,107
NET ASSETS
Beginning of the year		19,516,637			24,282,537			662,205,638			504,299,531

End of the year	$	14,912,569		$	19,516,637		$	685,231,995		$	662,205,638

UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME	$	(67,205	)	$	12,535		$	(594,519	)	$	(549,210	)

| 72

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
CORE PLUS BOND FUND
Class A
9/30/2013	$	13.52	$	0.44	$	(0.51	)	$	(0.07	)	$	(0.55	)	$	(0.19	)	$	(0.74	)
9/30/2012		12.71		0.43		1.07			1.50			(0.50	)		(0.19	)		(0.69	)
9/30/2011		12.75		0.52		0.03	(f)		0.55			(0.59	)		—			(0.59	)
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	)
Class B
9/30/2013		13.57		0.33		(0.50	)		(0.17	)		(0.44	)		(0.19	)		(0.63	)
9/30/2012		12.75		0.34		1.07			1.41			(0.40	)		(0.19	)		(0.59	)
9/30/2011		12.79		0.42		0.03	(f)		0.45			(0.49	)		—			(0.49	)
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	)
Class C
9/30/2013		13.53		0.34		(0.51	)		(0.17	)		(0.45	)		(0.19	)		(0.64	)
9/30/2012		12.71		0.33		1.08			1.41			(0.40	)		(0.19	)		(0.59	)
9/30/2011		12.76		0.42		0.02	(f)		0.44			(0.49	)		—			(0.49	)
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	)
Class N
9/30/2013*		13.43		0.32		(0.59	)		(0.27	)		(0.36	)		—			(0.36	)
Class Y
9/30/2013		13.61		0.47		(0.51	)		(0.04	)		(0.58	)		(0.19	)		(0.77	)
9/30/2012		12.78		0.46		1.09			1.55			(0.53	)		(0.19	)		(0.72	)
9/30/2011		12.82		0.55		0.03	(f)		0.58			(0.62	)		—			(0.62	)
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	)

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

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

(b)	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.

(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, if applicable. Without this waiver/reimbursement, expenses would have been higher.

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

(f)	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.

See accompanying notes to financial statements.

73 |



							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 (%)


	$12.71		(0.61	)	$	436,199		0.79		0.79		3.29		107
	13.52		12.18			479,823		0.82		0.82		3.31		78
	12.71		4.42			237,759		0.87		0.87		4.07		86
	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

	12.77		(1.32	)		1,180		1.54		1.54		2.50		107
	13.57		11.38			2,386		1.57		1.57		2.61		78
	12.75		3.60			3,092		1.62		1.62		3.32		86
	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

	12.72		(1.36	)		232,034		1.54		1.54		2.54		107
	13.53		11.46			275,346		1.57		1.57		2.55		78
	12.71		3.56			137,836		1.62		1.62		3.32		86
	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

	12.80		(2.02	)		19,247		0.44		0.44		3.81		107

	12.80		(0.35	)		627,617		0.54		0.54		3.54		107
	13.61		12.54			634,946		0.58		0.58		3.50		78
	12.78		4.65			143,215		0.62		0.62		4.31		86
	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

See accompanying notes to financial statements.

| 74

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
HIGH INCOME FUND
Class A
9/30/2013	$	4.60	$	0.24	$	0.03		$	0.27		$	(0.27	)	$	(0.01	)	$	(0.28	)
9/30/2012		4.46		0.24		0.59			0.83			(0.30	)		(0.39	)		(0.69	)
9/30/2011		4.91		0.28		(0.42	)		(0.14	)		(0.31	)		—			(0.31	)
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	)
Class B
9/30/2013		4.61		0.21		0.03			0.24			(0.23	)		(0.01	)		(0.24	)
9/30/2012		4.47		0.21		0.58			0.79			(0.26	)		(0.39	)		(0.65	)
9/30/2011		4.92		0.25		(0.43	)		(0.18	)		(0.27	)		—			(0.27	)
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	)
Class C
9/30/2013		4.61		0.21		0.04			0.25			(0.24	)		(0.01	)		(0.25	)
9/30/2012		4.47		0.21		0.59			0.80			(0.27	)		(0.39	)		(0.66	)
9/30/2011		4.92		0.25		(0.43	)		(0.18	)		(0.27	)		—			(0.27	)
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	)
Class Y
9/30/2013		4.59		0.25		0.04			0.29			(0.28	)		(0.01	)		(0.29	)
9/30/2012		4.46		0.26		0.57			0.83			(0.31	)		(0.39	)		(0.70	)
9/30/2011		4.90		0.29		(0.41	)		(0.12	)		(0.32	)		—			(0.32	)
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	)

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

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

(g)	Includes fee/expense recovery of 0.02%, 0.01%, 0.01% and 0.01% for Class A, B, C and Y, respectively.

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

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

See accompanying notes to financial statements.

75 |


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


	$ —		$	4.59		6.27		$	45,791		1.15	(g)		1.15	(g)		5.11		47
	—			4.60		20.90			95,876		1.15			1.19			5.50		34
	—			4.46		(3.30	)		59,907		1.15	(h)		1.15	(h)		5.60		67
	—			4.91		17.05			68,011		1.15			1.20			6.72		56
	0.00	(i)		4.49		15.97			59,944		1.15			1.28			8.82		30

	—			4.61		5.66			385		1.90	(g)		1.90	(g)		4.37		47
	—			4.61		19.93			560		1.90			1.94			4.79		34
	—			4.47		(4.04	)		738		1.90	(h)		1.90	(h)		4.90		67
	—			4.92		16.13			1,209		1.90			1.94			6.00		56
	0.00	(i)		4.50		15.06			1,569		1.90			2.06			8.32		30

	—			4.61		5.46			15,233		1.90	(g)		1.90	(g)		4.36		47
	—			4.61		19.96			16,863		1.90			1.94			4.78		34
	—			4.47		(4.02	)		15,790		1.90	(h)		1.90	(h)		4.89		67
	—			4.92		16.15			19,312		1.90			1.95			5.97		56
	0.00	(i)		4.50		15.37			17,827		1.90			2.03			8.09		30

	—			4.59		6.56			108,170		0.90	(g)		0.90	(g)		5.37		47
	—			4.59		20.93			110,917		0.90			0.95			5.78		34
	—			4.46		(2.86	)		38,011		0.90	(h)		0.90	(h)		5.86		67
	—			4.90		17.11			69,887		0.90			0.93			7.02		56
	0.00	(i)		4.49		16.29			105,713		0.90			0.92			8.32		30

See accompanying notes to financial statements.

| 76

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
INTERNATIONAL BOND FUND
Class A
9/30/2013	$	10.44	$	0.14	$	(0.41	)	$	(0.27	)	$	(0.18	)	$	(0.18	)	$	(0.36	)
9/30/2012		10.94		0.19		0.62			0.81			(0.94	)		(0.37	)		(1.31	)
9/30/2011		11.17		0.25		0.06	(h)		0.31			(0.40	)		(0.14	)		(0.54	)
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	)
Class C
9/30/2013		10.37		0.06		(0.39	)		(0.33	)		(0.13	)		(0.18	)		(0.31	)
9/30/2012		10.87		0.12		0.61			0.73			(0.86	)		(0.37	)		(1.23	)
9/30/2011		11.11		0.17		0.05	(h)		0.22			(0.32	)		(0.14	)		(0.46	)
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	)
Class Y
9/30/2013		10.44		0.16		(0.40	)		(0.24	)		(0.20	)		(0.18	)		(0.38	)
9/30/2012		10.93		0.21		0.63			0.84			(0.96	)		(0.37	)		(1.33	)
9/30/2011		11.16		0.28		0.06	(h)		0.34			(0.43	)		(0.14	)		(0.57	)
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	)

(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 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, if applicable. Without this waiver/reimbursement, expenses would have been higher.

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

(f)	Effective July 1, 2012, the expense limit decreased from 1.10%, 1.85% and 0.85% to 1.05%, 1.80% and 0.80% for Class A, Class C and Class Y shares, respectively.

(g)	Includes interest expense from bank overdraft charges of less than 0.01%. Without this expense the ratio of net expenses would have been 1.09%, 1.84% and 0.84% for Class A, Class C and Class Y shares, respectively.

(h)	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.

See accompanying notes to financial statements.

77 |


							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 (%)


	$ 9.81		(2.62	)		$8,983		1.05			1.93		1.39		107
	10.44		8.42			11,898		1.09	(f)(g)		1.85		1.83		169
	10.94		2.70			10,927		1.10			1.64		2.26		136
	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

	9.73		(3.27	)		3,328		1.80			2.68		0.65		107
	10.37		7.64			4,355		1.84	(f)(g)		2.61		1.13		169
	10.87		1.87			7,503		1.85			2.40		1.52		136
	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

	9.82		(2.34	)		2,601		0.80			1.68		1.64		107
	10.44		8.68			3,264		0.85	(f)(g)		1.60		2.05		169
	10.93		3.06			5,852		0.85			1.36		2.47		136
	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

See accompanying notes to financial statements.

| 78

Financial Highlights (continued)

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains (b)			Distributions from paid-in capital (b)			Total distributions
LIMITED TERM GOVERNMENTAND AGENCY FUND
Class A
9/30/2013	$	12.04	$	0.13	$	(0.23	)	$	(0.10	)	$	(0.26	)	$	(0.00	)	$	(0.00	)	$	(0.26	)
9/30/2012		11.87		0.18		0.28			0.46			(0.29	)		(0.00	)		—			(0.29	)
9/30/2011		12.02		0.17		0.03			0.20			(0.26	)		(0.09	)		—			(0.35	)
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	)
Class B
9/30/2013		12.03		0.04		(0.23	)		(0.19	)		(0.17	)		(0.00	)		(0.00	)		(0.17	)
9/30/2012		11.86		0.10		0.27			0.37			(0.20	)		(0.00	)		—			(0.20	)
9/30/2011		12.00		0.09		0.03			0.12			(0.17	)		(0.09	)		—			(0.26	)
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	)
Class C
9/30/2013		12.05		0.04		(0.23	)		(0.19	)		(0.17	)		(0.00	)		(0.00	)		(0.17	)
9/30/2012		11.88		0.10		0.27			0.37			(0.20	)		(0.00	)		—			(0.20	)
9/30/2011		12.03		0.08		0.03			0.11			(0.17	)		(0.09	)		—			(0.26	)
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	)
Class Y
9/30/2013		12.08		0.16		(0.23	)		(0.07	)		(0.29	)		(0.00	)		(0.00	)		(0.29	)
9/30/2012		11.91		0.21		0.28			0.49			(0.32	)		(0.00	)		—			(0.32	)
9/30/2011		12.05		0.20		0.04			0.24			(0.29	)		(0.09	)		—			(0.38	)
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	)

(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.

(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, if applicable. Without this waiver/reimbursement, expenses would have been higher.

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

(g)	Includes corporate tax expenses of 0.03% for Class A, B, C and Y shares. Without this expense the ratio of net expenses for Class A, B, C and Y shares would have been 0.84%, 1.59%, 1.59% and 0.59%, respectively.

See accompanying notes to financial statements.

79 |



							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 (%)


	$11.68		(0.81	)		$355,212		0.87	(g)		0.87	(g)		1.11		39
	12.04		3.94			357,870		0.85			0.90			1.54		56
	11.87		1.71			293,675		0.85			0.92			1.44		66
	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

	11.67		(1.56	)		5,930		1.62	(g)		1.62	(g)		0.34		39
	12.03		3.17			8,370		1.60			1.65			0.81		56
	11.86		1.04			10,976		1.60			1.68			0.72		66
	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

	11.69		(1.55	)		71,963		1.62	(g)		1.62	(g)		0.36		39
	12.05		3.17			75,522		1.60			1.65			0.80		56
	11.88		0.96			68,776		1.60			1.67			0.68		66
	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

	11.72		(0.56	)		252,127		0.62	(g)		0.62	(g)		1.35		39
	12.08		4.19			220,444		0.60			0.65			1.77		56
	11.91		2.05			130,874		0.60			0.67			1.68		66
	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

See accompanying notes to financial statements.

| 80

Notes to Financial Statements

September 30, 2013

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 (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:

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”)

Each Fund is a diversified investment company, except for International Bond Fund, which is a non-diversified investment company.

The Funds each offer Class A, Class C and Class Y shares. Effective February 1, 2013, Core Plus Bond Fund began offering Class N Shares. Effective October 12, 2007, Class B shares are no longer offered. Existing Class B shareholders may continue to reinvest dividends into Class B shares and exchange their Class B shares for Class B shares of other Natixis Funds subject to existing exchange privileges as described in the prospectus.

Class A shares of all Funds except Limited Term Government and Agency Fund are sold with a maximum front-end sales charge of 4.50%. Class A shares of Limited Term Government and Agency Fund are sold with a maximum front-end sales charge of 3.00%. Class B shares do not pay a front-end sales charge; 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 N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are offered exclusively through intermediaries and are primarily intended for employer-sponsored retirement plans. Class Y shares are 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.

81 |

Notes to Financial Statements (continued)

September 30, 2013

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

a. Valuation. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) and unlisted equity securities are generally valued on the basis of evaluated bids furnished to the Funds by an independent pricing service, recommended by the investment adviser and approved by the Board of Trustees, which 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. Senior loans are priced at bid prices supplied by an independent pricing service, if available. 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 independent pricing services recommended by the investment adviser and approved by the Board of Trustees. Such independent 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 prices may also be used to value debt and equity securities and senior loans where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Futures contracts are valued at their most recent settlement price.

| 82

Notes to Financial Statements (continued)

September 30, 2013

Credit default swap agreements are valued at mid prices (between the bid and the ask price) supplied by an independent pricing service, if available, or prices obtained from broker-dealers. Investments in other open-end investment companies are valued at their net asset value each day. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser under the general supervision of the Board of Trustees.

Certain Funds may hold securities traded in foreign markets. Foreign securities are valued at the closing 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 day 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. 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.

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

83 |

Notes to Financial Statements (continued)

September 30, 2013

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.

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

e. Futures Contracts. The Funds may enter into futures contracts. Futures contracts are agreements between two parties to buy and sell a particular commodity, instrument or index for a specified price on a specified future date.

When a Fund enters into a futures contract, it is required to deposit with (or for the benefit of) its broker an amount of cash or short-term high-quality securities as “initial margin.” As the value of the contract changes, the value of the futures contract position increases or declines. Subsequent payments, known as “variation margin,” are made or received by a Fund, depending on the price fluctuations in the fair value of the contract and the value of cash or securities on deposit with the broker. The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statements of Assets and Liabilities as an asset (liability) and in the Statements of Operations as unrealized appreciation (depreciation) until the

| 84

Notes to Financial Statements (continued)

September 30, 2013

contracts are closed, when they are recorded as realized gains (losses). Realized gain or loss on a futures position is equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, minus brokerage commissions. When a Fund enters into a futures contract certain risks may arise, such as illiquidity in the futures market, which may limit a Fund’s ability to close out a futures contract prior to settlement date, and unanticipated movements in the value of securities or interest rates.

Futures contracts are exchange-traded. Exchange-traded futures contracts are standardized and are settled through a clearing house with fulfillment supported by the credit of the exchange. Therefore, counterparty credit risks to the Funds are reduced; however, in the event that a counterparty enters into bankruptcy, the Fund’s claim against initial/variation margin on deposit with the counterparty may be subject to terms of a final settlement in bankruptcy court.

f. Swap Agreements. 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. As a protection buyer, the Funds have the ability to hedge the downside risk of an issuer or group of issuers. As a protection seller, the Funds have the ability to gain exposure to an issuer or group of issuers whose bonds are unavailable or in short supply in the cash bond market, as well as realize additional income in the form of fees paid by the protection buyer. The protection buyer is obligated to pay the protection seller a stream of payments (“fees”) over the term of the contract, provided that no credit event, such as a default or a downgrade in credit rating, occurs on the reference obligation. The Funds may also pay or receive upfront premiums. If a credit event occurs, the protection seller must pay the protection buyer the difference between the agreed upon notional value and market value of the reference obligation. Market value in this case is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the value. The maximum potential amount of undiscounted future payments that a Fund as the protection seller could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement.

The notional amounts of credit default swaps are not recorded in the financial statements. Credit default swaps are valued daily, and fluctuations in the value are recorded in the Statements of Operations as change in unrealized appreciation (depreciation) on swap agreements. Fees are accrued in accordance with the terms of the agreement and are recorded in the Statements of Operations as realized gain or loss when received or paid. Upfront premiums paid or received by the Funds are recorded on the Statements of Assets and Liabilities as an asset or liability, respectively, and are amortized or accreted over the term of the agreement and recorded as realized gain or loss. Payments made or

85 |

Notes to Financial Statements (continued)

September 30, 2013

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.

No credit default swaps were held by the Funds during the year ended September 30, 2013.

g. Due from Brokers. Transactions and positions in certain futures and forward foreign currency contracts are maintained and cleared by registered U.S. broker/dealers pursuant to customer agreements between the Fund and the various broker/dealers. Due from brokers’ balances in the Statements of Asset and Liabilities for High Income Fund represent cash pledged as collateral for forward foreign currency contracts. In certain circumstances the Fund’s use of cash and/or securities held at brokers is restricted by regulation or broker mandated limits. Cash pledged as collateral for forward foreign currency contracts is held for the benefit of the counterparty at a third party custodian.

h. 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 September 30, 2013 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

| 86

Notes to Financial Statements (continued)

September 30, 2013

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

i. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined 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, contingent payment debt instruments, preferred securities adjustments, premium amortization, defaulted bond adjustments, paydown gains and losses, return of capital and capital gain distributions received, taxable overdistribution and distribution redesignations. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to deferred Trustees’ fees, wash sales, premium amortization, forward foreign currency and futures contracts mark to market, dividends payable, trust preferred securities adjustments, contingent payment debt instruments, return of capital distributions received and defaulted bond interest. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2013 and 2012 were as follows:


	2013 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Return of Capital		Total
Core Plus Bond Fund	$	78,998,718	$	7,677,478	$	—	$	86,676,196
High Income Fund		12,581,747		689,257		—		13,271,004
International Bond Fund		523,768		163,540		—		687,308
Limited Term Government and Agency Fund		15,061,634		234,773		110,176		15,406,583



	2012 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Core Plus Bond Fund	$	38,311,608	$	5,887,516	$	44,199,124
High Income Fund		12,336,748		9,467,897		21,804,645
International Bond Fund		2,051,571		303,804		2,355,375
Limited Term Government and Agency Fund		12,349,174		810,952		13,160,126

87 |

Notes to Financial Statements (continued)

September 30, 2013

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, 2013, the components of distributable earnings on a tax basis were as follows:


	Core Plus Bond Fund			High Income Fund		International Bond Fund			Limited Term Government and Agency Fund
Undistributed ordinary income	$	2,687,149		$	1,913,587	$	96,805		$	—
Undistributed long-term capital gains		8,484,736			7,747,131		284,970			—

Total undistributed earnings		11,171,885			9,660,718		381,775			—

Capital loss carryforward:
Short-term:
No expiration date		—			—		—			(107,452	)
Long-term:
No expiration date		—			—		—			(82,408	)
Late year ordinary and post-October capital loss deferrals*		(9,747,912	)		—		—			(7,556,110	)
Unrealized appreciation (depreciation)		(17,000,364	)		1,474,081		(881,711	)		4,059,311

Total accumulated earnings (losses)	$	(15,576,391	)	$	11,134,799	$	(499,936	)	$	(3,686,659	)

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

j. 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.

k. 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

| 88

Notes to Financial Statements (continued)

September 30, 2013

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. 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. No interest accrues to each Fund until the transaction settles.

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 the portfolio. Risks may arise upon entering into such transactions from the potential inability of counterparties to meet their obligations under the transactions. Additionally, losses may arise due to changes in the value of the underlying securities.

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

For the year ended September 30, 2013, none of the Funds had loaned securities under this agreement.

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

89 |

Notes to Financial Statements (continued)

September 30, 2013

n. New Accounting Pronouncement. In December 2011, Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” was issued and is effective for interim and annual periods beginning after January 1, 2013. The ASU creates new disclosure requirements with respect to an entity’s rights of setoff and related arrangements associated with its financial and derivative instruments. Management has evaluated the impact of the adoption of ASU 2011-11 and will incorporate the new disclosures required in the March 31, 2014 report.

•

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

•

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

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

| 90

Notes to Financial Statements (continued)

September 30, 2013

good faith by the Funds’ investment adviser under the general supervision of the Board of Trustees. Fair valued securities may be categorized in Level 3.

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2013, at value:

Core Plus Bond Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	—	$	1,787,489	$	8,485,775	(b)	$	10,273,264
Airlines		—		—		4,343,325	(b)		4,343,325
All Other Non-Convertible Bonds(a)		—		1,223,393,299		—			1,223,393,299

Total Non-Convertible Bonds		—		1,225,180,788		12,829,100			1,238,009,888

Convertible Bonds(a)		—		—		1,513,625	(c)		1,513,625

Total Bonds and Notes		—		1,225,180,788		14,342,725			1,239,523,513

Senior Loans(a)		—		44,961,565		—			44,961,565
Preferred Stocks
Media Cable		—		8,855,550		—			8,855,550
All Other Preferred Stocks(a)		2,591,006		—		—			2,591,006

Total Preferred Stocks		2,591,006		8,855,550		—			11,446,556

Short-Term Investments		—		46,314,363		—			46,314,363

Total	$	2,591,006	$	1,325,312,266	$	14,342,725		$	1,342,245,997

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

(b)	Valued using broker-dealer bid prices.

(c)	Fair valued by the Fund’s investment adviser.

A preferred stock valued at $497,669 was transferred from Level 2 to Level 1 during the period ended September 30, 2013. At September 30, 2013, this security was valued at the last sale price in accordance with the Fund’s valuation policies.

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

91 |

Notes to Financial Statements (continued)

September 30, 2013

High Income Fund

Asset Valuation Inputs


Description	Level 1			Level 2			Level 3			Total
Bonds and Notes
Non-Convertible Bonds
Airlines	$	—		$	—		$	740,816	(b)	$	740,816
All Other Non-Convertible Bonds(a)		—			122,209,555			—			122,209,555

Total Non-Convertible Bonds		—			122,209,555			740,816			122,950,371

Convertible Bonds
Wirelines		—			—			43,333	(c)		43,333
All Other Convertible Bonds(a)		—			19,720,450			—			19,720,450

Total Convertible Bonds		—			19,720,450			43,333			19,763,783

Total Bonds and Notes		—			141,930,005			784,149			142,714,154

Senior Loans(a)		—			3,311,843			—			3,311,843
Preferred Stocks(a)		9,653,497			—			—			9,653,497
Common Stocks(a)		4,085,133			—			—			4,085,133
Warrants(d)		111,885			—			—			111,885
Short-Term Investments		—			7,557,653			—			7,557,653

Total Investments		13,850,515			152,799,501			784,149			167,434,165

Forward Foreign Currency Contracts (unrealized appreciation)		—			42,038			—			42,038

Total	$	13,850,515		$	152,841,539		$	784,149		$	167,476,203

Liability Valuation Inputs
Description	Level 1			Level 2			Level 3			Total
Forward Foreign Currency Contracts (unrealized depreciation)	$	—		$	(314,769	)	$	—		$	(314,769	)
Futures Contracts (unrealized depreciation)		(11,224	)		—			—			(11,224	)

Total	$	(11,224	)	$	(314,769	)	$	—		$	(325,993	)

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

(b)	Valued using broker-dealer bid prices.

(c)	Fair valued by the Fund’s investment adviser.

(d)	Includes a security fair valued at zero using Level 2 inputs.

| 92

Notes to Financial Statements (continued)

September 30, 2013

A preferred stock valued at $902,727 was transferred from Level 2 to Level 1 during the period ended September 30, 2013. At September 30, 2013, this security was valued at the last sale price in accordance with the Fund’s valuation policies.

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

International Bond Fund

Asset Valuation Inputs


Description	Level 1		Level 2			Level 3			Total
Bonds and Notes
Non-Convertible Bonds
United States	$	—	$	2,118,393		$	41,625	(b)	$	2,160,018
All Other Non-Convertible Bonds(a)		—		12,296,475			—			12,296,475

Total Non-Convertible Bonds		—		14,414,868			41,625			14,456,493

Convertible Bonds(a)		—		21,650			—			21,650

Total Bonds and Notes		—		14,436,518			41,625			14,478,143

Preferred Stocks(a)		58,306		—			—			58,306
Short-Term Investments		—		259,970			—			259,970

Total Investments		58,306		14,696,488			41,625			14,796,419

Forward Foreign Currency Contracts (unrealized appreciation)		—		35,882			—			35,882
Futures Contracts (unrealized appreciation)		13,655		—			—			13,655

Total	$	71,961	$	14,732,370		$	41,625		$	14,845,956

Liability Valuation Inputs
Description	Level 1		Level 2			Level 3			Total
Forward Foreign Currency Contracts (unrealized depreciation)	$	—	$	(24,631	)	$	—		$	(24,631	)

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

(b)	Valued using broker-dealer bid prices.

For the year ended September 30, 2013, there were no transfers among Levels 1, 2 and 3.

93 |

Notes to Financial Statements (continued)

September 30, 2013

Limited Term Government and Agency Fund

Asset Valuation Inputs


Description	Level 1		Level 2			Level 3			Total
Bonds and Notes
ABS Student Loan	$	—	$	—		$	1,336,443	(b)	$	1,336,443
Collateralized Mortgage Obligations		—		196,625,256			38,339,237	(b)		234,964,493
All Other Non-Convertible Bonds(a)		—		439,850,499			—			439,850,499

Total Bonds and Notes		—		636,475,755			39,675,680			676,151,435

Short-Term Investments		—		11,602,796			—			11,602,796

Total	$	—	$	648,078,551	��	$	39,675,680		$	687,754,231

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

(b)	Valued using broker-dealer bid prices.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of September 30, 2012 and/or September 30, 2013:

Core Plus Bond Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2012		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	—	$	—	$	—		$	(115,948	)	$	8,601,723
Airlines		—		601		476			(210,277	)		—
Convertible Bonds
Wirelines		—		3,354		(18	)		187,954			2,644,671

Total	$	—	$	3,955	$	458		$	(138,271	)	$	11,246,394

| 94

Notes to Financial Statements (continued)

September 30, 2013

Core Plus Bond Fund (continued)

Asset Valuation Inputs (continued)


Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3		Balance as of September 30, 2013		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2013
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	—		$	—	$	—	$	8,485,775	$	(115,948	)
Airlines		(76,878	)		4,629,403		—		4,343,325		(210,277	)
Convertible Bonds
Wirelines		(1,322,336	)		—		—		1,513,625		187,954

Total	$	(1,399,214	)	$	4,629,403	$	—	$	14,342,725	$	(138,271	)

Debt securities valued at $4,629,403 were transferred from Level 2 to Level 3 during the period ended September 30, 2013. At September 30, 2013, these securities were valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the securities.

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

High Income Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2012		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
Airlines	$	—	$	8,946	$	3,517		$	(13,324	)	$	345,000
Transportation Services		234,438		—		—			—			—
Convertible Bonds
Wirelines		—		—		(8	)		(6,852	)		100,386

Total	$	234,438	$	8,946	$	3,509		$	(20,176	)	$	445,386

95 |

Notes to Financial Statements (continued)

September 30, 2013

High Income Fund (continued)

Asset Valuation Inputs (continued)



Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2013		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2013
Bonds and Notes
Non-Convertible Bonds
Airlines	$	(16,827	)	$	413,504	$	—		$	740,816	$	(13,324	)
Transportation Services		—			—		(234,438	)		—		—
Convertible Bonds
Wirelines		(50,193	)		—		—			43,333		(6,852	)

Total	$	(67,020	)	$	413,504	$	(234,438	)	$	784,149	$	(20,176	)

Debt securities valued at $413,504 were transferred from Level 2 to Level 3 during the period ended September 30, 2013. At September 30, 2013, these securities were valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the securities.

A debt security valued at $234,438 was transferred from Level 3 to Level 2 during the period ended September 30, 2013. At September 30, 2013, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

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

International Bond Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2012		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
United States	$	—	$	—	$	—	$	(3,375	)	$	45,000

| 96

Notes to Financial Statements (continued)

September 30, 2013

International Bond Fund (continued)

Asset Valuation Inputs (continued)



Investments in Securities	Sales		Transfers into Level 3		Transfers out of Level 3		Balance as of September 30, 2013		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2013
Bonds and Notes
Non-Convertible Bonds
United States	$	—	$	—	$	—	$	41,625	$	(3,375	)

Limited Term Government and Agency Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2012		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
ABS Car Loan	$	910,501	$	—	$	—		$	—		$	—
ABS Student Loan		—		—		—			4,130			—
Collateralized Mortgage Obligations		—		—		(65	)		(656,484	)		31,068,310
Mortgage Related		1,982,780		—		—			—			—

Total	$	2,893,281	$	—	$	(65	)	$	(652,354	)	$	31,068,310

97 |

Notes to Financial Statements (continued)

September 30, 2013

Limited Term Government and Agency Fund (continued)

Asset Valuation Inputs (continued)



Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2013		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2013
Bonds and Notes
ABS Car Loan	$	—		$	—	$	(910,501	)	$	—	$	—
ABS Student Loan		(2,413,414	)		3,745,727		—			1,336,443		4,130
Collateralized Mortgage Obligations		(1,241,557	)		9,169,033		—			38,339,237		(656,484	)
Mortgage Related		—			—		(1,982,780	)		—		—

Total	$	(3,654,971	)	$	12,914,760	$	(2,893,281	)	$	39,675,680	$	(652,354	)

Debt securities valued at $12,914,760 were transferred from Level 2 to Level 3 during the period ended September 30, 2013. At September 30, 2013, these securities were valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the securities.

Debt securities valued at $2,893,281 were transferred from Level 3 to Level 2 during the period ended September 30, 2013. At September 30, 2013, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

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 High Income Fund and International Bond Fund used during the period include forward foreign currency contracts and futures contracts.

High Income Fund and International Bond Fund 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

| 98

Notes to Financial Statements (continued)

September 30, 2013

exposure to foreign currencies, regardless of whether securities denominated in such currencies are held in the Funds. During the year ended September 30, 2013, 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.

High Income Fund and International Bond Fund are subject to the risk that changes in interest rates will affect the value of the Funds’ investments in fixed income securities. A Fund will be subject to increased interest rate risk to the extent that it invests in fixed-income securities with longer maturities or durations, as compared to investing in fixed-income securities with shorter maturities or durations. The Funds may use futures contracts to hedge against changes in interest rates and to manage duration without having to buy or sell portfolio securities. During the year ended September 30, 2013, High Income Fund used futures contracts for hedging purposes and International Bond Fund used futures contracts to manage duration.

The following is a summary of derivative instruments for High Income Fund as of September 30, 2013, as reflected within the Statement of Assets and Liabilities:


Assets	Unrealized appreciation on forward foreign currency contracts			Unrealized appreciation on futures contracts¹			Total
Over-the-counter asset derivatives
Foreign exchange contracts	$	42,038		$	—		$	42,038


Liabilities	Unrealized depreciation on forward foreign currency contracts			Unrealized depreciation on futures contracts¹			Total
Over-the-counter liability derivatives
Foreign exchange contracts	$	(314,769	)	$	—		$	(314,769	)
Exchange traded/cleared liability derivatives
Interest rate contracts		—			(11,224	)		(11,224	)

Total liability derivatives	$	(314,769	)	$	(11,224	)	$	(325,993	)

¹	Represents cumulative unrealized appreciation (depreciation) on futures contracts. Only the current day’s variation margin on futures contracts is reported within the Statement of Assets and Liabilities as receivable or payable for variation margin, as applicable.

99 |

Notes to Financial Statements (continued)

September 30, 2013

Transactions in derivative instruments for High Income Fund during the year ended September 30, 2013, as reflected within the Statement of Operations, were as follows:


Net Realized Gain (Loss) on:	Futures contracts			Foreign currency transactions²
Interest rate contracts	$	(1,775	)	$	—
Foreign exchange contracts		—			(1,753,937	)

Total	$	(1,775	)	$	(1,753,937	)


Net Change in Unrealized Appreciation (Depreciation) on:	Futures contracts			Foreign currency translations²
Interest rate contracts	$	(11,224	)	$	—
Foreign exchange contracts		—			(29,497	)

Total	$	(11,224	)	$	(29,497	)

²	Represents realized loss and change in unrealized appreciation (depreciation), respectively, for forward foreign currency contracts during the period. Does not include other foreign currency gains or losses included in the Statement of Operations.

The following is a summary of derivative instruments for International Bond Fund as of September 30, 2013, as reflected within the Statement of Assets and Liabilities:


Assets	Unrealized appreciation on forward foreign currency contracts		Unrealized appreciation on futures contracts¹		Total
Over-the-counter asset derivatives
Foreign exchange contracts	$	35,882	$	—	$	35,882
Exchange traded/cleared asset derivatives
Interest rate contracts		—		13,655		13,655

Total asset derivatives	$	35,882	$	13,655	$	49,537


Liabilities	Unrealized depreciation on forward foreign currency contracts			Unrealized depreciation on futures contracts¹		Total
Over-the-counter liability derivatives
Foreign exchange contracts	$	(24,631	)	$	—	$	(24,631	)

¹	Represents cumulative unrealized appreciation (depreciation) on futures contracts. Only the current day’s variation margin on futures contracts is reported within the Statement of Assets and Liabilities as receivable or payable for variation margin, as applicable.

| 100

Notes to Financial Statements (continued)

September 30, 2013

Transactions in derivative instruments for International Bond Fund during the year ended September 30, 2013, as reflected within the Statement of Operations, were as follows:


Net Realized Gain (Loss) on:	Futures contracts			Foreign currency transactions²
Interest rate contracts	$	(5,412	)	$	—
Foreign exchange contracts		—			56,806

Total	$	(5,412	)	$	56,806


Net Change in Unrealized Appreciation (Depreciation) on:	Futures contracts		Foreign currency translations²
Interest rate contracts	$	13,655	$	—
Foreign exchange contracts		—		(5,153	)

Total	$	13,655	$	(5,153	)

²	Represents realized gain and change in unrealized appreciation (depreciation), respectively, for forward foreign currency contracts during the period. Does not include other foreign currency gains or losses included in the Statement of Operations.

Over-the-counter derivatives, including forward foreign currency contracts, are entered into pursuant to International Swaps and Derivatives Association, Inc. (“ISDA”) agreements negotiated between the Funds and their counterparties. ISDA agreements typically contain, among other things, terms for posting of collateral and master netting provisions in the event of a default or other termination event. Collateral is posted by a Fund or the counterparty to the extent of the net mark-to-market exposure to the other party of all open contracts under the agreement, subject to minimum transfer requirements. Master netting provisions allow the Funds and the counterparty, in the event of a default or other termination event, to offset amounts owed by each related to derivative contracts, including any posted collateral, to one net amount payable by either the Funds or the counterparty. For financial reporting purposes, the Funds do not offset derivative assets and liabilities, and any related collateral received or pledged, on the Statements of Assets and Liabilities. The Funds’ ISDA agreements typically contain provisions that allow a counterparty to terminate open contracts early if the net asset value of a Fund declines beyond a certain threshold. As of September 30, 2013, the fair

101 |

Notes to Financial Statements (continued)

September 30, 2013

value of derivative positions subject to these provisions that are in a net liability position by counterparty, and the value of collateral pledged to counterparties for such contracts is as follows:


Fund	Counterparty	Derivatives			Collateral Pledged
High Income Fund	Barclays Bank PLC	$	(272,731	)	$	280,000

Counterparty risk is managed based on policies and procedures established by each Fund’s adviser. Such policies and procedures may include, but are not limited to, minimum counterparty credit rating requirements, monitoring of counterparty credit default swap spreads and posting of collateral. The risk of loss to a Fund from counterparty default should be limited to the extent a Fund is under collateralized for over-the-counter derivatives; however, final settlement of a Fund’s claim against any collateral received may be subject to bankruptcy court proceedings. Additionally, cash or securities held at or pledged to counterparties for initial/variation margin or as collateral may be subject to bankruptcy court proceedings. Based on balances reflected on each Fund’s Statements of Assets and Liabilities, including cash and/or securities held at or pledged to counterparties for initial/variation margin or as collateral that could be subject to the terms of a final settlement in a bankruptcy court proceeding, the maximum amount of loss that the Funds would incur if counterparties failed to meet their obligations, and the amount of loss that the Funds would incur after taking into account master netting arrangements are as follows as of September 30, 2013:


Fund	Maximum Amount of Loss - Gross		Maximum Amount of Loss - Net
High Income Fund	$	342,476	$	300,438
International Bond Fund		62,713		38,082

| 102

Notes to Financial Statements (continued)

September 30, 2013

The volume of forwards foreign currency contract and futures contract activity, as a percentage of net assets, based on gross month-end notional amounts outstanding during the period, including long and short positions at absolute value, was as follows for the year ended September 30, 2013:


High Income Bond Fund	Forwards			Futures
Average Notional Amount Outstanding		6.55	%		0.07	%
Highest Notional Amount Outstanding		11.53	%		0.57	%
Lowest Notional Amount Outstanding		2.76	%		0.00	%
Notional Amount Outstanding as of September 30, 2013		9.38	%		0.55	%


International Bond Fund	Forwards			Futures
Average Notional Amount Outstanding		21.07	%		3.19	%
Highest Notional Amount Outstanding		40.96	%		5.64	%
Lowest Notional Amount Outstanding		12.10	%		0.00	%
Notional Amount Outstanding as of September 30, 2013		28.62	%		5.64	%

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

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

5. Purchases and Sales of Securities. For the year ended September 30, 2013, 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	$	774,038,966	$	904,148,417	$	900,757,676	$	736,531,783
High Income Fund		2,248,929		8,271,472		91,838,487		127,974,815
International Bond Fund		2,061,085		2,076,468		16,368,287		19,566,636
Limited Term Government and Agency Fund		141,528,552		160,040,072		209,196,017		96,777,820

103 |

Notes to Financial Statements (continued)

September 30, 2013

6. Management Fees and Other Transactions with Affiliates.


	Percentage of Average Daily Net Assets
Fund	First $100 million			Next $400 million			Next $1.5 billion			Over $2 billion
Core Plus Bond Fund		0.2000	%		0.1875	%		0.1875	%		0.1500	%
High Income Fund		0.6000	%		0.6000	%		0.6000	%		0.6000	%
International Bond Fund		0.6000	%		0.6000	%		0.6000	%		0.6000	%
Limited Term Government and Agency Fund		0.3750	%		0.3750	%		0.3500	%		0.3000	%

NGAM Advisors, L.P. (“NGAM 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			Next $1.9 billion			Over $2 billion
Core Plus Bond Fund		0.2000	%		0.1875	%		0.1500	%

Prior to July 1, 2013, Core Plus Bond Fund and Limited Term Government and Agency Fund paid 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 $150 million			Over $250 million
Core Plus Bond Fund		0.2500	%		0.1875	%		0.1875	%
Limited Term Government and Agency Fund		0.5000	%		0.5000	%		0.4000	%

Prior to July 1, 2013, Core Plus Bond Fund paid 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	%

| 104

Notes to Financial Statements (continued)

September 30, 2013

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

For the period from July 1, 2013 to September 30, 2013, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:


	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Class A			Class B			Class C			Class N			Class Y
Core Plus Bond Fund		0.80	%		1.55	%		1.55	%		0.50	%		0.55	%
High Income Fund		1.15	%		1.90	%		1.90	%		—			0.90	%
International Bond Fund		1.05	%		—			1.80	%		—			0.80	%
Limited Term Government and Agency Fund		0.80	%		1.55	%		1.55	%		—			0.55	%

Prior to July 1, 2013, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:


	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Class A			Class B			Class C			Class N			Class Y
Core Plus Bond Fund		0.90	%		1.65	%		1.65	%		0.60	%		0.65	%
Limited Term Government and Agency Fund		0.85	%		1.60	%		1.60	%		—			0.60	%

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

Loomis Sayles (and NGAM 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 annual operating expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such waived/reimbursed

105 |

Notes to Financial Statements (continued)

September 30, 2013

fees or expenses more than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed.

For the year ended September 30, 2013, 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
Core Plus Bond Fund	$	2,999,019	$	—	$	2,999,019		0.191	%		0.191	%
High Income Fund		1,291,330		—		1,291,330		0.600	%		0.600	%
International Bond Fund		108,272		108,272		—		0.600	%		—
Limited Term Government and Agency Fund		2,916,904		19		2,916,885		0.419	%		0.419	%

¹	Management fee waivers are subject to possible recovery until September 30, 2014.

For the year ended September 30, 2013, the advisory administration fees for Core Plus Bond Fund were as follows:


Advisory Administration Fee	Percentage of Average Daily Net Assets
$ 2,999,019		0.191	%

For the year ended September 30, 2013, expenses have been reimbursed as follows:


Fund	Reimbursement²
Core Plus Bond Fund	$	8,278
International Bond Fund		51,156

²	Expense reimbursements are subject to possible recovery until September 30, 2014.

For the year ended September 30, 2013, expense reimbursements related to the prior fiscal year were recovered as follows:


Fund	Recovered Expenses
High Income Fund	$	24,894
Limited Term Government and Agency Fund		14,643

| 106

Notes to Financial Statements (continued)

September 30, 2013

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

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

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

Under the Class B (if applicable) and Class C Plans, each Fund pays NGAM Distribution a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Funds’ Class B (if applicable) and Class C shares, as compensation for services provided by NGAM Distribution in 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 NGAM Distribution a monthly distribution fee at the annual rate of 0.75% of the average daily net assets attributable to the Funds’ Class B (if applicable) and Class C shares, as compensation for services provided by NGAM Distribution in connection with the marketing or sale of Class B (if applicable) and Class C shares.

For the year ended September 30, 2013, the service and distribution fees for each Fund were as follows:


	Service Fees						Distribution Fees
Fund	Class A		Class B		Class C		Class B		Class C
Core Plus Bond Fund	$	1,332,309	$	4,382	$	725,754	$	13,144	$	2,177,262
High Income Fund		175,735		1,238		41,369		3,713		124,108
International Bond Fund		27,324		—		10,060		—		30,182
Limited Term Government and Agency Fund		924,843		18,265		193,327		54,795		579,980

107 |

Notes to Financial Statements (continued)

September 30, 2013

c. Administrative Fees. NGAM Advisors provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. NGAM Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and NGAM Advisors, each Fund pays NGAM Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, 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.

For the year ended September 30, 2013, the administrative fees for each Fund were as follows:


Fund	Administrative Fees
Core Plus Bond Fund	$	695,722
High Income Fund		95,200
International Bond Fund		7,984
Limited Term Government and Agency Fund		307,970

| 108

Notes to Financial Statements (continued)

September 30, 2013

For the year ended September 30, 2013, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:


Fund	Sub-Transfer Agent Fees
Core Plus Bond Fund	$	1,111,873
High Income Fund		184,093
International Bond Fund		14,349
Limited Term Government and Agency Fund		265,038

As of September 30, 2013, the Funds owe NGAM Distribution the following reimbursements for sub-transfer agent fees:


Fund	Reimbursements of Sub-Transfer Agent Fees
Core Plus Bond Fund	$	14,206
High Income Fund		2,510
International Bond Fund		158
Limited Term Government and Agency Fund		3,740

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

e. Commissions. Commissions (including CDSCs) on Fund shares retained by NGAM Distribution during the year ended September 30, 2013 were as follows:


Fund	Commissions
Core Plus Bond Fund	$	818,877
High Income Fund		154,433
International Bond Fund		5,540
Limited Term Government and Agency Fund		307,788

f. Trustees Fees and Expenses. The Trusts do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of NGAM Advisors, NGAM Distribution, Natixis US or their affiliates. Effective January 1, 2013, the Chairperson of the Board receives a retainer fee at the annual rate of $285,000. 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 $115,000. 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

109 |

Notes to Financial Statements (continued)

September 30, 2013

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 $17,500. 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 $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, 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.

g. Affiliated Ownership. At September 30, 2013, Loomis Sayles Employees’ Profit Sharing Retirement Plan (“Retirement Plan”) held shares of the Funds representing the following percentages of net assets:


Fund	Retirement Plan
Core Plus Bond Fund		0.14	%
International Bond Fund		1.45	%
Limited Term Government and Agency Fund		0.10	%

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

| 110

Notes to Financial Statements (continued)

September 30, 2013

7. Class-Specific Transfer Agent Fees and Expenses. For the period from February 1, 2013 through September 30, 2013, Core Plus Bond Fund incurred the following class-specific transfer agent fees and expenses:


	Class N
Transfer Agent Fees and Expenses	$	29

Transfer agent fees and expenses attributable to Class A, Class B, Class C and Class Y 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.

8. 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 0.10% 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 year ended September 30, 2013, none of the Funds had borrowings under these agreements.

9. 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.

Limited Term Government and Agency Fund’s investments in mortgage-related and asset-backed securities are subject to certain risks not associated with investments in other securities. Mortgage-related and asset-backed securities are subject to the risk that unexpected changes in interest rates will have a direct effect on expected maturity. A shortened maturity may result in the reinvestment of prepaid amounts in securities with lower yields than the original obligations. An extended maturity may result in a reduction of a security’s value.

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

10. Corporate Tax Expense. Loomis Sayles Limited Term Government and Agency Fund paid federal corporate income taxes in the amount of $224,327 on undistributed net long-term capital gains as of September 30, 2012.

111 |

Notes to Financial Statements (continued)

September 30, 2013

11. Concentration of Ownership. From time to time, a Fund may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of such accounts could have material impacts on the Funds. As of September 30, 2013, based on management’s evaluation of the shareholder account base, the Funds had accounts representing controlling ownership of more than 5% of the Fund’s total outstanding shares. The number of such accounts, based on accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings was as follows:


Fund	Number of >5% Non-Affiliated Account Holders		Percentage of Non-Affiliated Ownership			Percentage of Affiliated Ownership (Note 6)			Total Percentage of Ownership
Core Plus Bond Fund		—		—			0.14	%		0.14	%
High Income Fund		1		8.53	%		0.00	%		8.53	%
International Bond Fund		1		12.71	%		1.45	%		14.16	%
Limited Term Government and Agency Fund		1		6.20	%		0.10	%		6.30	%

| 112

Notes to Financial Statements (continued)

September 30, 2013

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


	Year Ended September 30, 2013					Year Ended September 30, 2012
Core Plus Bond Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	23,400,679		$	312,055,029		27,370,858		$	355,172,674
Issued in connection with the reinvestment of distributions	1,815,759			23,994,065		1,087,023			14,031,796
Redeemed	(26,393,734	)		(344,871,782	)	(11,683,801	)		(151,134,746	)

Net change	(1,177,296	)	$	(8,822,688	)	16,774,080		$	218,069,724

Class B
Issued from the sale of shares	3,363		$	45,726		18,163		$	232,753
Issued in connection with the reinvestment of distributions	5,269			70,185		8,025			103,306
Redeemed	(92,007	)		(1,231,008	)	(92,873	)		(1,209,379	)

Net change	(83,375	)	$	(1,115,097	)	(66,685	)	$	(873,320	)

Class C
Issued from the sale of shares	8,354,865		$	111,674,557		11,681,836		$	152,094,275
Issued in connection with the reinvestment of distributions	591,854			7,828,050		326,978			4,220,534
Redeemed	(11,061,448	)		(144,010,707	)	(2,493,106	)		(32,473,101	)

Net change	(2,114,729	)	$	(24,508,100	)	9,515,708		$	123,841,708

Class N*
Issued from the sale of shares	1,567,247		$	19,814,495		—		$	—
Issued in connection with the reinvestment of distributions	10,969			139,775		—			—
Redeemed	(75,008	)		(954,522	)	—			—

Net change	1,503,208		$	18,999,748		—		$	—

Class Y
Issued from the sale of shares	45,112,822		$	603,948,919		44,233,390		$	579,833,966
Issued in connection with the reinvestment of distributions	2,320,259			30,841,104		884,004			11,568,457
Redeemed	(45,057,119	)		(590,589,192	)	(9,666,030	)		(127,951,720	)

Net change	2,375,962		$	44,200,831		35,451,364		$	463,450,703

Increase (decrease) from capital share transactions	503,770		$	28,754,694		61,674,467		$	804,488,815

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

113 |

Notes to Financial Statements (continued)

September 30, 2013

12. Capital Shares (continued).


	Year Ended September 30, 2013					Year Ended September 30, 2012
High Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	4,989,606		$	23,721,653		21,107,989		$	93,628,788
Issued in connection with the reinvestment of distributions	812,256			3,817,055		2,189,836			9,162,829
Redeemed	(16,692,970	)		(78,579,586	)	(15,882,475	)		(70,067,314	)

Net change	(10,891,108	)	$	(51,040,878	)	7,415,350		$	32,724,303

Class B
Issued from the sale of shares	11,352		$	52,895		5,673		$	24,777
Issued in connection with the reinvestment of distributions	4,586			21,581		19,672			81,687
Redeemed	(53,925	)		(252,094	)	(68,910	)		(305,756	)

Net change	(37,987	)	$	(177,618	)	(43,565	)	$	(199,292	)

Class C
Issued from the sale of shares	702,239		$	3,347,581		805,879		$	3,533,514
Issued in connection with the reinvestment of distributions	150,549			707,094		421,300			1,752,724
Redeemed	(1,205,196	)		(5,689,434	)	(1,101,851	)		(4,859,465	)

Net change	(352,408	)	$	(1,634,759	)	125,328		$	426,773

Class Y
Issued from the sale of shares	17,170,028		$	80,940,800		27,436,571		$	123,173,948
Issued in connection with the reinvestment of distributions	1,311,917			6,160,472		1,416,350			5,940,281
Redeemed	(19,061,214	)		(90,332,449	)	(13,232,329	)		(58,722,847	)

Net change	(579,269	)	$	(3,231,177	)	15,620,592		$	70,391,382

Increase (decrease) from capital share transactions	(11,860,772	)	$	(56,084,432	)	23,117,705		$	103,343,166

| 114

Notes to Financial Statements (continued)

September 30, 2013

12. Capital Shares (continued).


	Year Ended September 30, 2013					Year Ended September 30, 2012
International Bond Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	418,554		$	4,190,166		550,775		$	5,589,441
Issued in connection with the reinvestment of distributions	31,172			316,920		89,124			883,291
Redeemed	(673,797	)		(6,649,849	)	(499,605	)		(5,230,159	)

Net change	(224,071	)	$	(2,142,763	)	140,294		$	1,242,573

Class C
Issued from the sale of shares	108,173		$	1,088,309		119,315		$	1,209,211
Issued in connection with the reinvestment of distributions	9,072			91,839		46,134			453,165
Redeemed	(194,937	)		(1,913,707	)	(435,796	)		(4,443,773	)

Net change	(77,692	)	$	(733,559	)	(270,347	)	$	(2,781,397	)

Class Y
Issued from the sale of shares	152,390		$	1,539,901		611,695		$	6,195,469
Issued in connection with the reinvestment of distributions	5,073			51,430		19,724			195,522
Redeemed	(205,113	)		(2,022,661	)	(854,117	)		(8,765,676	)

Net change	(47,650	)	$	(431,330	)	(222,698	)	$	(2,374,685	)

Increase (decrease) from capital share transactions	(349,413	)	$	(3,307,652	)	(352,751	)	$	(3,913,509	)

115 |

Notes to Financial Statements (continued)

September 30, 2013

12. Capital Shares (continued).


	Year Ended September 30, 2013					Year Ended September 30, 2012
Limited Term Government and Agency Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	12,850,713		$	153,126,484		15,612,122		$	186,297,906
Issued in connection with the reinvestment of distributions	561,467			6,662,144		513,246			6,128,335
Redeemed	(12,732,399	)		(151,248,094	)	(11,137,817	)		(132,584,098	)

Net change	679,781		$	8,540,534		4,987,551		$	59,842,143

Class B
Issued from the sale of shares	57,224		$	682,522		67,643		$	803,090
Issued in connection with the reinvestment of distributions	8,642			102,565		12,997			154,932
Redeemed	(253,623	)		(3,009,576	)	(310,167	)		(3,693,689	)

Net change	(187,757	)	$	(2,224,489	)	(229,527	)	$	(2,735,667	)

Class C
Issued from the sale of shares	2,982,402		$	35,505,345		2,463,981		$	29,387,942
Issued in connection with the reinvestment of distributions	58,167			690,850		59,828			714,780
Redeemed	(3,153,586	)		(37,432,038	)	(2,044,375	)		(24,403,572	)

Net change	(113,017	)	$	(1,235,843	)	479,434		$	5,699,150

Class Y
Issued from the sale of shares	19,772,954		$	235,387,316		19,006,051		$	227,577,207
Issued in connection with the reinvestment of distributions	321,692			3,829,024		205,462			2,463,226
Redeemed	(16,833,635	)		(200,317,847	)	(11,948,359	)		(142,880,346	)

Net change	3,261,011		$	38,898,493		7,263,154		$	87,160,087

Increase (decrease) from capital share transactions	3,640,018		$	43,978,695		12,500,612		$	149,965,713

| 116

Report of Independent Registered Public Accounting Firm

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

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Loomis Sayles Core Plus Bond Fund, a series of Natixis Funds Trust I, and Loomis Sayles High Income Fund, Loomis Sayles International Bond Fund and Loomis Sayles Limited Term Government and Agency Fund, each a series of Loomis Sayles Funds II (collectively, the “Funds”), at September 30, 2013 and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2013

117 |

2013 U.S. Tax Distribution Information to Shareholders (Unaudited)


Fund	Qualifying Percentage
Core Plus Bond		0.28	%
High income		3.48	%
International Bond		0.10	%


Fund	Amount
Core Plus Bond	$	7,677,478
High Income		689,257
International Bond		163,540
Limited Term Government and Agency		234,773


Fund
Core Plus Bond
High Income
International Bond

| 118

Trustee and Officer Information

The tables below provide certain information regarding the trustees and officers of Natixis Funds Trust I and Loomis Sayles Funds II (the “Trusts”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Funds’ Statements of Additional Information include additional information about the trustees of the Trusts and are available by calling Natixis Funds at 800-225-5478.


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES

Charles D. Baker (1956)	Trustee From 2005 to 2009 and since 2011 for Natixis Funds Trust I and Loomis Sayles Funds II Contract Review and Governance Committee Member	Executive in Residence at General Catalyst Partners (venture capital and growth equity firm); formerly, President and Chief Executive Officer, Harvard Pilgrim Health Care (health care organization)	42 Director, Athenahealth, Inc. (software company)	Significant experience on the Board; executive experience (including president and chief executive officer of a health care organization and executive officer of a venture capital and growth equity firm)

Daniel M. Cain (1945)	Trustee Since 1996 for Natixis Funds Trust I and since 2003 for Loomis Sayles Funds II Chairman of the Contract Review and Governance Committee	Chairman (formerly, President and Chief Executive Officer) of Cain Brothers & Company, Incorporated (investment banking)	42 Director, Sheridan Healthcare Inc. (physician practice management)	Significant experience on the Board and on the board of other business organizations (including at a health care organization); experience in the financial industry (including roles as chairman and former chief executive officer of an investment banking firm)

119 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Kenneth A. Drucker (1945)	Trustee Since 2008 for Natixis Funds Trust I and Loomis Sayles Funds II Chairman of the Audit Committee	Retired	42 Formerly, Director, M Fund, Inc. (investment company); Director, Gateway Trust (investment company)	Significant experience on the Board and on the board of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)

Edmond J. English (1953)	Trustee Since 2013 for Natixis Funds Trust I and Loomis Sayles Funds II Contract Review and Governance Committee Member	Chief Executive Officer of Bob’s Discount Furniture (retail)	42 Formerly, Director, BJ’s Wholesale Club (retail); formerly, Director, Citizens Financial Group (bank)	Significant experience on the board of other business organizations (including at a retail company and a bank); executive experience (including at a retail company)

| 120

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Wendell J. Knox (1948)	Trustee Since 2009 for Natixis Funds Trust I and Loomis Sayles Funds II Audit Committee Member	Director (formerly, President and Chief Executive Officer) of Abt Associates Inc. (research and consulting)	42 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the board of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

Martin T. Meehan (1956)	Trustee Since 2012 for Natixis Funds Trust I and Loomis Sayles Funds II Contract Review and Governance Committee Member	Chancellor and faculty member, University of Massachusetts Lowell	42 None	Experience on the Board and on the board of other business organizations; experience as Chancellor of the University of Massachusetts Lowell; government experience (including as a member of the U.S. House of Representatives); academic experience

121 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee Since 1982 for Natixis Funds Trust I (including its predecessors) and since 2003 for Loomis Sayles Funds II Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting)	42 Director, Verizon Communications (telecommunications company); Director, AES Corporation (international power company); formerly, Director, Rohm and Haas Company (specialty chemicals)	Significant experience on the Board and on the board of other business organizations (including at a telecommunications company, an international power company and a specialty chemicals corporation); executive experience (including at a management consulting company)

Erik R. Sirri (1958)	Trustee Since 2009 for Natixis Funds Trust I and Loomis Sayles Funds II Audit Committee Member	Professor of Finance at Babson College; formerly, Director of the Division of Trading and Markets at the Securities and Exchange Commission	42 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist

| 122

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Peter J. Smail (1952)	Trustee Since 2009 for Natixis Funds Trust I and Loomis Sayles Funds II Contract Review and Governance Committee Member	Retired; formerly, President and Chief Executive Officer of Pyramis Global Advisors (investment management)	42 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

Cynthia L. Walker (1956)	Trustee Since 2005 for Natixis Funds Trust I and Loomis Sayles Funds II Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School	42 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)

INTERESTED TRUSTEES

Robert J. Blanding³ (1947) 555 California Street San Francisco, CA 94104	Trustee Since 2003 for Natixis Funds Trust I and since 2002 for Loomis Sayles Funds II Chief Executive Officer of Loomis Sayles Funds II since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	42 None	Significant experience on the Board; continuing service as President, Chairman, and Chief Executive Officer of Loomis, Sayles & Company, L.P.

123 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INTERESTED TRUSTEES continued

David L. Giunta⁴ (1965)	Trustee Since 2011 for Natixis Funds Trust I and Loomis Sayles Funds II President and Chief Executive Officer of Natixis Funds Trust I and President of Loomis Sayles Funds II since 2008	President and Chief Executive Officer, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.	42 None	Experience on the Board; continuing experience as President and Chief Executive Officer of NGAM Advisors, L.P.

John T. Hailer⁵ (1960)	Trustee Since 2000 for Natixis Funds Trust I and since 2003 for Loomis Sayles Funds II	President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.	42 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

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

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

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

| 124

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trusts	Term of Office¹ and Length of Time Served	Principal Occupation(s) During Past 5 Years²

OFFICERS OF THE TRUST

Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

Daniel J. Fuss (1933) One Financial Center Boston, MA 02111	Executive Vice President of Loomis Sayles Funds II	Since June 2003	Vice Chairman and Director, Loomis, Sayles & Company, L.P.

Russell L. Kane (1969)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Chief Compliance Officer since May 2006; Assistant Secretary since June 2004; and Anti-Money Laundering Officer since April 2007	Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, NGAM Advisors, L.P. and NGAM Distribution, L.P.

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

125 |

ANNUAL REPORT

September 30, 2013

LOGO

Loomis Sayles Investment Grade Bond Fund

TABLE OF CONTENTS

Portfolio Review page 1

Portfolio of Investments page 12

Financial Statements page 31

Notes to Financial Statements page 37

LOOMIS SAYLES INVESTMENT GRADE BOND FUND


Managers	Symbols
Matthew J. Eagan, CFA	Class A	LIGRX
Daniel J. Fuss, CFA, CIC	Class B	LGBBX
Brian P. Kennedy	Class C	LGBCX
Elaine M. Stokes	Class N	LGBNX
Loomis, Sayles & Company, L.P.	Class Y	LSIIX
	Admin Class	LIGAX

Objective

High total investment return through a combination of current income and capital appreciation.

Strategy

Under normal market conditions, the Fund will invest at least 80% of its net assets in investment-grade, fixed-income securities, although it may invest up to 10% of its assets in below investment-grade fixed-income securities and up to 10% of its assets in equity securities (including up to 5% in common stocks). The Fund may also invest any portion of its assets in securities of Canadian issuers and up to 20% of its assets in securities of other foreign issuers, including emerging markets securities.

Market Conditions

The 12-month period ended September 30, 2013 began with investor attention focused on the November 2012 U.S. presidential election. Soon afterward, fears that the U.S. economy would fall off the “fiscal cliff” took center stage, and investors sought to position themselves for the scheduled automatic tax hikes and spending cuts. Ultimately, Congress and the president struck an 11^th-hour deal, which helped buoy the markets through the first quarter of 2013. During the second quarter of 2013, the Federal Reserve (the Fed) introduced volatility in the fixed-income markets and tempered investor enthusiasm by indicating a potential winding down of its monthly mortgage and Treasury security purchase program, known as quantitative easing (QE). The magnitude of the resulting selloff and the overall disruption to markets tightened financial conditions significantly. Based on the Fed’s announcement, investors anticipated the Fed would begin tapering QE following the central bank’s September policy meeting. However, the Fed surprised markets and decided to delay the taper while softening its forward guidance. This announcement led to a rally in equities, emerging market currencies and fixed income markets. The 12-month period concluded with renewed uncertainty surrounding Congressional budget and debt ceiling discussions.

1 |

Performance Review

For the 12 months ended September 30, 2013, Class A shares of Loomis Sayles Investment Grade Bond Fund returned 1.34%. The fund outperformed its benchmark, the Barclays U.S. Government/Credit Bond Index, which returned -1.96%.

Explanation of Fund Performance

Security selection among investment-grade corporate credits, particularly within the financials, industrials and utilities areas, and an overweight position in the sector contributed strongly to fund performance. Similarly, an out-of-benchmark allocation to the high-yield sector lifted results, with security selection among financials and industrials leading the way. In addition, the fund’s out-of-benchmark exposure to non-U.S.-dollar-denominated issues, including those issued in the euro, New Zealand dollar, British pound, Icelandic krona and South Korean won, contributed positively to relative performance. The fund’s position in convertible securities, another out-of-benchmark sector, also posted strong returns for the period. Tracking the performance in the equity markets, the fund’s modest preferred/equity allocation posted strong relative results. Additionally, overweight allocations to commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) aided performance.

Conversely, out-of-benchmark positions denominated in the Canadian dollar, Brazilian real, Indonesian rupiah, Australian dollar, Mexican peso and Norwegian krone weighed on relative performance. The fund’s longer yield curve (a curve that shows the relationship among bond yields across the maturity spectrum) positioning in U.S. Treasuries and agencies detracted as interest rates rose during the period.

Outlook

Based on our long-term views, we have not made material asset allocation changes. Our strategy centers on research-based security selection, with a focus on sectors that can be

| 2

LOOMIS SAYLES INVESTMENT GRADE BOND FUND

uncorrelated with U.S. interest rates, and we continue to build diversification into the fund. We intend to maintain reduced term structure risk and continue to decrease nominal duration through sector and security selection. The fund’s ability to invest in what we view as the best risk-adjusted opportunities across a full range of global markets, sectors and securities may be an advantage as the economic recovery unfolds and the investment landscape evolves.

Growth of $10,000 Investment in Class A Shares⁴

September 30, 2003 through September 30, 2013

LOGO

3 |

Average Annual Total Returns — September 30, 2013⁴



	1 Year			5 Years			10 Years			Since Class N Inception

Class A (Inception 12/31/96)
NAV		1.34	%		9.53	%		7.20	%		—	%
With 4.50% Maximum Sales Charge		-3.21			8.52			6.71			—

Class B (Inception 9/12/03)
NAV		0.57			8.67			6.33			—
With CDSC²		-4.22			8.38			6.33			—

Class C (Inception 9/12/03)
NAV		0.50			8.71			6.38			—
With CDSC²		-0.45			8.71			6.38			—

Class N (Inception 2/1/13)
NAV		—			—			—			-0.95

Class Y (Inception 12/31/96)
NAV		1.60			9.81			7.50			—

Admin Class (Inception 2/1/10)¹
NAV		1.10			9.22			6.75			—

Comparative Performance
Barclays U.S. Government/Credit Bond Index³		-1.96			5.71			4.52			-1.40

NOTES TO CHART

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.

3	Barclays U.S. Government/Credit Bond Index is an unmanaged index that includes U.S. Treasuries, government-related issues, and investment grade U.S. corporate securities.

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

| 4

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.

ADDITIONAL INDEX INFORMATION

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 ngam.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, 2013 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 800-SEC-0330.

5 |

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 following examples are intended to help you understand the ongoing costs of investing in the fund and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table for each class shows the actual amount of fund expenses you would have paid on a $1,000 investment in the fund from April 1, 2013 through September 30, 2013. 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 = 8.60) and multiply the result by the number in the Expenses Paid During 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.

| 6


LOOMIS SAYLES INVESTMENT GRADE BOND FUND	BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID DURING PERIOD* 4/1/2013 – 9/30/2013
Class A
Actual		$1,000.00		$985.70		$4.13
Hypothetical (5% return before expenses)		$1,000.00		$1,020.91		$4.20
Class B
Actual		$1,000.00		$982.60		$7.85
Hypothetical (5% return before expenses)		$1,000.00		$1,017.15		$7.99
Class C
Actual		$1,000.00		$981.80		$7.85
Hypothetical (5% return before expenses)		$1,000.00		$1,017.15		$7.99
Class N
Actual		$1,000.00		$986.10		$3.24
Hypothetical (5% return before expenses)		$1,000.00		$1,021.81		$3.29
Class Y
Actual		$1,000.00		$987.00		$2.89
Hypothetical (5% return before expenses)		$1,000.00		$1,022.16		$2.94
Admin Class
Actual		$1,000.00		$984.50		$5.37
Hypothetical (5% return before expenses)		$1,000.00		$1,019.65		$5.47

Expenses are equal to the Fund's annualized expense ratio (after waiver/reimbursement): 0.83%, 1.58%, 1.58%, 0.65%, 0.58% and 1.08% for Class A, B, C, N, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

7 |

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENT

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

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

In addition to the materials requested by the Trustees in connection with their annual consideration of the continuation of the Agreement, the Trustees receive materials in advance of each regular quarterly meeting of the Board that provide detailed information about the Fund’s investment performance and the fees charged to the Fund for advisory and other services. This information generally includes, among other things, an internal performance rating for the Fund based on agreed-upon criteria, graphs showing the Fund’s performance and fee differentials against the Fund’s peer group/category, performance ratings provided by a third-party, total return information for various periods, and third-party performance rankings for various periods comparing the Fund against similarly

| 8

categorized funds. The portfolio management team for the Fund or other representatives of the Adviser make periodic presentations to the Contract Review and Governance Committee and/or the full Board, and if the Fund is identified as presenting possible performance concerns it may be subject to more frequent board presentations and reviews. In addition, each quarter the Trustees are provided with detailed statistical information about the Fund’s portfolio. The Trustees also receive periodic updates between meetings.

The Board most recently approved the continuation of the Agreement at their meeting held in June 2013. The Agreement was continued for a one-year period. In considering whether to approve the continuation of the Agreement, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreement included, but were not limited to, the factors listed below.

The nature, extent and quality of the services provided to the Fund under the Agreement. The Trustees considered the nature, extent and quality of the services provided by the Adviser and its affiliates to the Fund and the resources dedicated to the Fund by the Adviser and its affiliates.

The Trustees considered not only the advisory services provided by the Adviser to the Fund, but also the administrative services provided by NGAM Advisors, L.P. (“NGAM Advisors”) and its affiliates to the Fund. The Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds that offers shareholders the right to exchange shares of one type of fund for shares of another type of fund, and provides a variety of fund and shareholder services.

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

Investment performance of the Fund and the Adviser. As noted above, the Trustees received information about the performance of the Fund over various time periods, including information that compared the performance of the Fund to the performance of a peer group and category of funds and the Fund’s performance benchmark. In addition, the Trustees also reviewed data prepared by an independent third party that analyzed the performance of the Fund using a variety of performance metrics, including metrics that also measured the performance of the Fund on a risk adjusted basis. The Board concluded that the Fund’s performance or other relevant factors supported the renewal of the Fund’s Agreement.

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

9 |

The costs of the services to be provided and profits to be realized by the Adviser and its affiliates from their respective relationships with the Fund. The Trustees considered the fees charged to the Fund for advisory services as well as the total expense level of the Fund. This information included comparisons (provided both by management and also by an independent third party) of the Fund’s advisory fee and total expense level to those of its peer group and information about the advisory fees charged by the Adviser to comparable accounts (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage and the greater regulatory costs associated with the management of mutual fund assets. In evaluating the Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of the Fund, as well as the need for the Adviser to offer competitive compensation in order to attract and retain capable personnel and the need for the Adviser to expend additional resources as the Fund grows in size. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps for various funds in the fund family. They noted that the Fund currently has an expense cap in place, although the current expenses of the Fund are below the cap.

The Trustees also considered the compensation directly or indirectly received by the Adviser and its affiliates from their relationships with the Fund. The Trustees reviewed information provided by management as to the profitability of the Adviser’s and its affiliates’ relationships with the Fund, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser compensation or profitability were issues, the performance of the Fund, the expense levels of the Fund and whether the Adviser had implemented breakpoints and/or expense caps with respect to the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the Agreement, that the advisory fee charged to the Fund was fair and reasonable, and that the costs of these services generally and the related profitability of the Adviser and its affiliates in respect of their relationships with the Fund supported the renewal of the Agreement.

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Fund through breakpoints in its investment advisory fee or other means, such as expense waivers or caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense waivers or caps for certain funds. Management explained that a number of factors are taken into account in considering the possible implementation of breakpoints or an expense cap for a fund, including, among other things, factors such as a fund’s assets, the projected growth of a fund, projected profitability and a fund’s fees and performance. With respect to economies of scale, the Trustees noted that the Fund was subject to an expense cap and the Fund’s

| 10

overall net expense ratio was below the median compared to a peer group of funds. The Trustees further noted that management had proposed to add a breakpoint to the Fund’s advisory fee given the size of the Fund and the prospect for further growth. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Fund, as discussed above.

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

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

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

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

The nature, quality, cost and extent of administrative and shareholder services performed by the Adviser and its affiliates, both under the Agreement and under a separate agreement covering administrative services.

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

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

Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that the existing Agreement should be continued through June 30, 2014.

11 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund


Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 92.7% of Net Assets
	Non-Convertible Bonds — 87.3%
		ABS Car Loan — 0.5%
$	21,683,000	Avis Budget Rental Car Funding AESOP LLC, Series 2010-3A, Class B, 6.740%, 5/20/2016, 144A	$	23,193,069
	20,999,250	Avis Budget Rental Car Funding AESOP LLC, Series 2010-5A, Class B, 5.110%, 3/20/2017, 144A		22,599,876
	5,481,000	Ford Auto Securitization Trust, Series 2010-R3A, Class D, 4.526%, 3/15/2017, 144A, (CAD)		5,479,670

				51,272,615

		ABS Credit Card — 0.0%
	2,324,000	World Financial Network Credit Card Master Trust, Series 2010-A, Class B, 6.750%, 4/15/2019		2,525,635

		ABS Other — 0.9%
	1,272,468	Community Program Loan Trust, Series 1987-A, Class A5, 4.500%, 4/01/2029		1,284,762
	4,462,199	Diamond Resorts Owner Trust, Series 2011-1, Class A, 4.000%, 3/20/2023, 144A		4,551,470
	17,279,230	SVO VOI Mortgage Corp., Series 2009-BA, Class NT, 5.810%, 12/20/2028, 144A		17,548,596
	38,198,563	Trinity Rail Leasing LP, Series 2009-1A, Class A, 6.657%, 11/16/2039, 144A		43,153,375
	15,063,930	Trinity Rail Leasing LP, Series 2010-1A, Class A, 5.194%, 10/16/2040, 144A		15,224,737
	4,157,911	Trinity Rail Leasing LP, Series 2012-1A, Class A1, 2.266%, 1/15/2043, 144A		4,086,507
	9,857,026	Trip Rail Master Funding LLC, Series 2011-1A, Class A1A, 4.370%, 7/15/2041, 144A		10,414,481

				96,263,928

		Aerospace & Defense — 1.1%
	2,100,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		2,089,500
	1,181,000	Textron Financial Corp., Series E, MTN, 5.125%, 8/15/2014		1,219,315
	78,795,000	Textron, Inc., 5.950%, 9/21/2021		86,623,204
	11,040,000	Textron, Inc., EMTN, 6.625%, 4/07/2020, (GBP)		19,835,086

				109,767,105

		Airlines — 2.9%
	5,215,000	Air Canada Pass Through Trust, Series 2013-1, Class B, 5.375%, 11/15/2022, 144A		5,032,475
	12,000,000	American Airlines Pass Through Trust, Series 2013-1, Class A, 4.000%, 1/15/2027, 144A		11,250,000
	18,340,000	Continental Airlines Pass Through Certificates, Series 2012-3, Class C, 6.125%, 4/29/2018		18,660,950
	57,977	Continental Airlines Pass Through Trust, Series 1997-1, Class A, 7.461%, 10/01/2016		58,046
	579,638	Continental Airlines Pass Through Trust, Series 1998-1, Class A, 6.648%, 3/15/2019		610,069
	794,940	Continental Airlines Pass Through Trust, Series 1999-1, Class A, 6.545%, 8/02/2020		864,497
	8,369,500	Continental Airlines Pass Through Trust, Series 2000-1, Class A-1, 8.048%, 5/01/2022		9,499,383

See accompanying notes to financial statements.

| 12

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Airlines — continued
$	1,699,087	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022	$	1,907,225
	3,095,792	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022		3,312,497
	52,594,416	Continental Airlines Pass Through Trust, Series 2007-1, Class A, 5.983%, 10/19/2023		56,276,025
	11,158,179	Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.903%, 10/19/2023		11,422,627
	23,571,356	Continental Airlines Pass Through Trust, Series 2009-1, 9.000%, 1/08/2018		26,930,274
	18,418,281	Continental Airlines Pass Through Trust, Series 2009-2, Class A, 7.250%, 5/10/2021		20,812,658
	3,065,000	Continental Airlines Pass Through Trust, Series 2012-1, Class B, 6.250%, 10/11/2021		3,164,613
	1,696,675	Delta Air Lines Pass Through Trust, Series 2007-1, Class A, 6.821%, 2/10/2024		1,887,551
	11,718,882	Delta Air Lines Pass Through Trust, Series 2007-1, Class B, 8.021%, 2/10/2024		12,714,987
	29,029,607	Delta Air Lines Pass Through Trust, Series 2009-1, Class A, 7.750%, 6/17/2021		33,710,632
	2,420,207	Delta Air Lines Pass Through Trust, Series 2009-1, Series B, 9.750%, 6/17/2018		2,671,304
	17,033,040	Delta Air Lines Pass Through Trust, Series 2010-1, Class A, 6.200%, 1/02/2020		18,651,178
	5,499,714	Northwest Airlines, Inc., Series 2007-1, Class B, 8.028%, 5/01/2019		5,681,204
	22,121,441	UAL Pass Through Trust, Series 2007-1, Class A, 6.636%, 1/02/2024		23,006,299
	546,191	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		612,062
	15,830,279	US Airways Pass Through Trust, Series 2011-1A, Class A, 7.125%, 4/22/2025		17,373,731
	9,930,000	US Airways Pass Through Trust, Series 2012-2A, Class A, 4.625%, 12/03/2026		9,582,450

				295,692,737

		Automotive — 1.1%
	36,651,000	Cummins, Inc., 5.650%, 3/01/2098		35,274,132
	5,274,000	Cummins, Inc., 6.750%, 2/15/2027		6,144,585
	2,426,000	Ford Motor Co., 6.375%, 2/01/2029		2,645,832
	125,000	Ford Motor Co., 6.500%, 8/01/2018		144,037
	255,000	Ford Motor Co., 6.625%, 2/15/2028		275,626
	5,074,000	Ford Motor Co., 6.625%, 10/01/2028		5,725,634
	3,243,000	Ford Motor Co., 7.400%, 11/01/2046		3,880,632
	4,823,000	Ford Motor Co., 7.450%, 7/16/2031		5,885,955
	240,000	Ford Motor Co., 7.500%, 8/01/2026		289,490
	5,000,000	Ford Motor Credit Co. LLC, 5.000%, 5/15/2018		5,477,755
	40,126,000	Ford Motor Credit Co. LLC, 6.625%, 8/15/2017		46,237,511
	2,370,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		2,346,300

				114,327,489

See accompanying notes to financial statements.

13 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Banking — 15.4%
$	22,547,000	AgriBank FCB, 9.125%, 7/15/2019, 144A	$	29,284,697
	1,634,000	Ally Financial, Inc., 6.750%, 12/01/2014		1,713,657
	2,285,000	Ally Financial, Inc., 8.000%, 11/01/2031		2,542,062
	7,200,000	American Express Centurion Bank, Series BKN1, 6.000%, 9/13/2017		8,349,473
	35,878,000	Associates Corp. of North America, 6.950%, 11/01/2018		42,618,005
	11,400,000	Banco Santander Brasil S.A./Cayman Islands, 8.000%, 3/18/2016, 144A, (BRL)		4,757,930
	3,590,000	Bank of America Corp., 5.420%, 3/15/2017		3,939,425
	9,805,000	Bank of America Corp., 6.000%, 9/01/2017		11,103,388
	11,100,000	Bank of America Corp., MTN, 5.000%, 5/13/2021		11,921,744
	2,393,000	Bank of America Corp., Series L, MTN, 7.625%, 6/01/2019		2,934,447
	17,249,000	Bank of America NA, 5.300%, 3/15/2017		19,010,140
	1,056,000	Barclays Bank PLC, 6.050%, 12/04/2017, 144A		1,172,998
	7,110,000,000	Barclays Bank PLC, EMTN, 3.680%, 8/20/2015, (KRW)		6,792,732
	337,230,000,000	Barclays Financial LLC, EMTN, 8.250%, 10/27/2014, (IDR)		27,389,017
	2,173,000	Bear Stearns Cos., Inc. (The), 4.650%, 7/02/2018		2,381,893
	370,000	BNP Paribas/Australia, 7.000%, 5/24/2016, (AUD)		371,151
	8,994,000	Capital One Financial Corp., 6.150%, 9/01/2016		10,016,186
	2,770,000	Citigroup, Inc., 3.375%, 3/01/2023		2,635,843
	17,000,000	Citigroup, Inc., 3.500%, 5/15/2023		15,340,749
	51,425,000	Citigroup, Inc., 4.450%, 1/10/2017		55,681,344
	1,660,000	Citigroup, Inc., 4.500%, 1/14/2022		1,739,733
	2,700,000	Citigroup, Inc., 5.365%, 3/06/2036, (CAD)(b)		2,410,328
	10,000,000	Citigroup, Inc., 5.375%, 8/09/2020		11,186,230
	2,740,000	Citigroup, Inc., 5.875%, 2/22/2033		2,728,213
	5,445,000	Citigroup, Inc., 6.125%, 5/15/2018		6,297,932
	8,705,000	Citigroup, Inc., 6.125%, 8/25/2036		8,761,086
	44,910,000	Citigroup, Inc., 6.250%, 6/29/2017, (NZD)		38,472,540
	2,398,000	Citigroup, Inc., EMTN, 1.495%, 11/30/2017, (EUR)(c)		3,150,055
	4,625,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Utrecht, 3.375%, 1/19/2017		4,921,166
	27,045,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Utrecht, 3.875%, 2/08/2022		27,077,968
	86,800,000	Goldman Sachs Group, Inc. (The), 3.375%, 2/01/2018, (CAD)		84,221,407
	1,174,000	Goldman Sachs Group, Inc. (The), 6.450%, 5/01/2036		1,191,873
	112,330,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		117,231,632
	6,645,000	Goldman Sachs Group, Inc. (The), GMTN, 5.375%, 3/15/2020		7,319,501
	4,467,000	HBOS PLC, 6.000%, 11/01/2033, 144A		4,203,894
	1,000,000	HBOS PLC, GMTN, 6.750%, 5/21/2018, 144A		1,111,194
	700,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		647,500
	36,745,000	JPMorgan Chase & Co., 4.250%, 11/02/2018, (NZD)		28,852,013
	2,950,000	JPMorgan Chase & Co., EMTN, 1.051%, 5/30/2017, (GBP)(c)		4,548,909
	12,000,000,000	JPMorgan Chase & Co., EMTN, 7.070%, 3/22/2014, (IDR)		991,088
	16,000,000,000	JPMorgan Chase Bank NA, 7.700%, 6/01/2016, 144A, (IDR)		1,328,636
	100,000	Keybank NA, 6.950%, 2/01/2028		120,374
	9,787,000	Lloyds Bank PLC, EMTN, 4.570%, 10/13/2015, (CAD)		9,887,906
	81,622,000	Lloyds Bank PLC, MTN, 6.500%, 9/14/2020, 144A		90,103,260

See accompanying notes to financial statements.

| 14

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Banking — continued
$	6,479,000	Merrill Lynch & Co., Inc., 5.700%, 5/02/2017	$	7,152,051
	4,300,000	Merrill Lynch & Co., Inc., 6.050%, 5/16/2016		4,735,921
	103,309,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		106,401,142
	3,132,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		4,533,727
	11,641,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		13,718,977
	2,652,000	Merrill Lynch & Co., Inc., Series C, GMTN, 6.400%, 8/28/2017		3,049,641
	40,126,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		41,954,823
	78,200,000	Morgan Stanley, 2.125%, 4/25/2018		76,217,474
	4,250,000	Morgan Stanley, 3.450%, 11/02/2015		4,405,380
	53,869,000	Morgan Stanley, 3.750%, 2/25/2023		51,931,548
	14,023,000	Morgan Stanley, 3.800%, 4/29/2016		14,759,558
	30,000,000	Morgan Stanley, 4.750%, 11/16/2018, (AUD)		27,847,967
	4,585,000	Morgan Stanley, 4.875%, 11/01/2022		4,587,412
	56,867,000	Morgan Stanley, 5.500%, 7/24/2020		62,768,600
	5,900,000	Morgan Stanley, 5.750%, 1/25/2021		6,549,643
	151,076,000	Morgan Stanley, 7.600%, 8/08/2017, (NZD)		133,106,927
	60,800,000	Morgan Stanley, 8.000%, 5/09/2017, (AUD)		62,696,615
	550,000	Morgan Stanley, EMTN, 5.750%, 2/14/2017, (GBP)		985,374
	5,400,000	Morgan Stanley, GMTN, 5.500%, 1/26/2020		5,975,446
	24,100,000	Morgan Stanley, GMTN, 7.625%, 3/03/2016, (AUD)		24,109,623
	9,410,000	Morgan Stanley, MTN, 4.100%, 5/22/2023		8,776,876
	3,800,000	Morgan Stanley, MTN, 7.250%, 5/26/2015, (AUD)		3,738,721
	38,206,000	Morgan Stanley, Series F, GMTN, 5.625%, 9/23/2019		42,634,992
	5,187,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018		6,021,884
	9,400,000	Morgan Stanley, Series F, MTN, 0.716%, 10/18/2016(c)		9,246,047
	9,044,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		10,232,183
	2,239,000	Morgan Stanley, Series G & H, GMTN, 5.125%, 11/30/2015, (GBP)		3,873,042
	2,875,000	National City Bank of Indiana, 4.250%, 7/01/2018		3,065,607
	8,638,000	National City Corp., 6.875%, 5/15/2019		10,306,896
	35,900,000	Royal Bank of Scotland Group PLC, 6.125%, 12/15/2022		36,166,378
	5,250,000	Royal Bank of Scotland PLC (The), EMTN, 4.350%, 1/23/2017, (EUR)		7,200,124
	6,150,000	Royal Bank of Scotland PLC (The), EMTN, 6.934%, 4/09/2018, (EUR)		9,119,302
	1,650,000	Royal Bank of Scotland PLC (The), EMTN, (fixed rate to 9/22/2016, variable rate thereafter), 4.625%, 9/22/2021, (EUR)		2,120,593
	700,000	Santander Financial Issuances Ltd., 7.250%, 11/01/2015		747,506
	16,175,000	Santander Holdings USA, Inc., 4.625%, 4/19/2016		17,138,723
	1,000,000	Santander International Debt SAU, EMTN, 4.000%, 3/27/2017, (EUR)		1,423,848
	1,800,000	Santander Issuances SAU, 5.911%, 6/20/2016, 144A		1,898,231
	1,400,000	Santander Issuances SAU, (fixed rate to 8/11/2014, variable rate thereafter), 6.500%, 8/11/2019, 144A		1,421,500
	5,600,000	Santander US Debt SAU, 3.724%, 1/20/2015, 144A		5,679,290
	30,886,000	Societe Generale S.A., MTN, 5.200%, 4/15/2021, 144A		33,595,598
	3,300,000	Standard Chartered Bank, 6.400%, 9/26/2017, 144A		3,762,429

				1,594,118,938

		Brokerage — 1.7%
	55,355,000	Cantor Fitzgerald LP, 6.375%, 6/26/2015, 144A		57,292,425
	13,100,000	Cantor Fitzgerald LP, 7.875%, 10/15/2019, 144A(b)		13,565,063

See accompanying notes to financial statements.

15 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Brokerage — continued
$	43,310,000	Jefferies Group LLC, 5.125%, 1/20/2023	$	43,650,114
	19,498,000	Jefferies Group LLC, 6.250%, 1/15/2036		18,710,144
	8,760,000	Jefferies Group LLC, 6.450%, 6/08/2027		8,935,200
	1,693,000	Jefferies Group LLC, 6.875%, 4/15/2021		1,877,825
	23,835,000	Jefferies Group LLC, 8.500%, 7/15/2019		28,860,300

				172,891,071

		Building Materials — 1.2%
	6,640,000	Masco Corp., 4.800%, 6/15/2015		6,938,800
	10,942,000	Masco Corp., 5.850%, 3/15/2017		11,844,715
	6,616,000	Masco Corp., 6.125%, 10/03/2016		7,318,950
	6,058,000	Masco Corp., 6.500%, 8/15/2032		6,012,565
	28,539,000	Masco Corp., 7.125%, 3/15/2020		32,177,722
	5,725,000	Masco Corp., 7.750%, 8/01/2029		6,323,303
	9,300,000	Odebrecht Finance Ltd., 8.250%, 4/25/2018, 144A, (BRL)		3,481,783
	4,949,000	Owens Corning, Inc., 6.500%, 12/01/2016		5,523,881
	41,379,000	Owens Corning, Inc., 7.000%, 12/01/2036		45,386,142
	1,037,000	USG Corp., 6.300%, 11/15/2016		1,096,627

				126,104,488

		Chemicals — 0.0%
	1,700,000	Methanex Corp., 5.250%, 3/01/2022		1,763,405

		Commercial Mortgage-Backed Securities — 2.5%
	50,990,525	Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4, 5.872%, 6/15/2039(c)		56,101,713
	34,381,273	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 5.953%, 9/15/2039(c)		38,233,591
	6,711,090	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		7,495,012
	57,694,000	Crown Castle Towers LLC, 6.113%, 1/15/2040, 144A		65,255,549
	69,500,000	Extended Stay America Trust, Series 2013, Class 7-ESH7, 3.902%, 12/05/2031, 144A		67,262,169
	9,786,870	Morgan Stanley Re-REMIC Trust, Series 2009-GG10, Class A4B, 5.993%, 8/12/2045, 144A(c)		10,736,236
	6,851,000	Vornado DP LLC, Series 2010-VNO, Class D, 6.356%, 9/13/2028, 144A		7,579,145
	4,250,000	WF-RBS Commercial Mortgage Trust, Series 2011-C3, Class D, 5.721%, 3/15/2044, 144A(c)		4,099,695

				256,763,110

		Construction Machinery — 0.1%
	6,787,000	Toro Co., 6.625%, 5/01/2037(b)		6,709,241
	400,000	United Rentals North America, Inc., 8.375%, 9/15/2020		443,000

				7,152,241

		Consumer Products — 0.2%
	7,458,000	Hasbro, Inc., 6.600%, 7/15/2028		8,027,165
	11,754,000	Snap-on, Inc., 6.700%, 3/01/2019		13,662,497

				21,689,662

See accompanying notes to financial statements.

| 16

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Diversified Manufacturing — 0.0%
$	1,395,000	Ingersoll-Rand Global Holding Co. Ltd., 6.875%, 8/15/2018	$	1,653,314

		Electric — 2.0%
	33,118,493	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		35,135,939
	10,331,144	Bruce Mansfield Unit, 6.850%, 6/01/2034		10,937,789
	9,066,000	Cleveland Electric Illuminating Co. (The), 5.700%, 4/01/2017		9,970,460
	12,285,000	EDP Finance BV, 4.900%, 10/01/2019, 144A		12,131,438
	3,200,000	EDP Finance BV, 6.000%, 2/02/2018, 144A		3,312,000
	900,000	EDP Finance BV, EMTN, 5.875%, 2/01/2016, (EUR)		1,281,488
	4,491,000	Endesa S.A./Cayman Islands, 7.875%, 2/01/2027		5,339,260
	40,453,000	Enel Finance International NV, 6.000%, 10/07/2039, 144A		36,836,906
	9,007,000	Enel Finance International NV, 6.800%, 9/15/2037, 144A		8,984,843
	7,921,000	Enel Finance International NV, EMTN, 5.750%, 9/14/2040, (GBP)		11,332,527
	3,600,000	Iberdrola Finance Ireland Ltd., 3.800%, 9/11/2014, 144A		3,685,817
	6,964,234	Mackinaw Power LLC, 6.296%, 10/31/2023, 144A(b)		7,249,294
	50,026,000	Southwestern Electric Power Co., 6.450%, 1/15/2019		58,159,877

				204,357,638

		Entertainment — 0.0%
	3,616,000	Viacom, Inc., 6.125%, 10/05/2017		4,136,469

		Financial Other — 1.0%
	66,384,000	Aviation Capital Group Corp., 6.750%, 4/06/2021, 144A		70,072,494
	26,914,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A		37,809,137

				107,881,631

		Food & Beverage — 0.0%
	2,450,000	Cargill, Inc., EMTN, 5.375%, 3/02/2037, (GBP)		4,450,887

		Government Guaranteed — 0.5%
	12,910,000	Instituto de Credito Oficial, EMTN, 4.530%, 3/17/2016, (CAD)		12,741,301
	11,311,000	Instituto de Credito Oficial, MTN, 6.125%, 2/27/2014, (AUD)		10,496,742
	4,000,000	Japan Bank for International Cooperation (Japan), 2.300%, 3/19/2018, (CAD)		3,832,474
	31,142,000	Queensland Treasury Corp., 7.125%, 9/18/2017, 144A, (NZD)		28,359,288

				55,429,805

		Government Owned – No Guarantee — 1.1%
	3,720,000	Abu Dhabi National Energy Co., 6.500%, 10/27/2036, 144A		4,212,900
	36,975,000	Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A		43,722,938
	58,060,000	DP World Ltd., 6.850%, 7/02/2037, 144A		58,350,300
	26,030,000,000	Export-Import Bank of Korea, 6.600%, 11/04/2013, 144A, (IDR)		2,223,115
	27,800,000,000	Export-Import Bank of Korea, 8.300%, 3/15/2014, 144A, (IDR)		2,343,674
	1,000,000	Telekom Malaysia Berhad, 7.875%, 8/01/2025, 144A		1,264,850

				112,117,777

		Health Insurance — 0.0%
	1,569,000	CIGNA Corp., 7.875%, 5/15/2027		1,949,009
	1,174,000	CIGNA Corp., (Step to 8.080% on 1/15/2023), 8.300%, 1/15/2033(d)		1,576,670

				3,525,679

See accompanying notes to financial statements.

17 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Healthcare — 1.1%
$	7,692,000	Boston Scientific Corp., 6.000%, 1/15/2020	$	8,797,033
	7,374,000	Covidien International Finance S.A., 6.000%, 10/15/2017		8,527,050
	9,459,000	Express Scripts, Inc., 7.250%, 6/15/2019		11,572,699
	9,278,000	HCA, Inc., 5.750%, 3/15/2014		9,451,963
	802,000	HCA, Inc., 5.875%, 3/15/2022		824,055
	52,905,000	HCA, Inc., 5.875%, 5/01/2023		51,979,162
	2,936,000	HCA, Inc., 7.050%, 12/01/2027		2,811,220
	4,119,000	HCA, Inc., 7.500%, 12/15/2023		4,201,380
	1,282,000	HCA, Inc., 7.500%, 11/06/2033		1,272,385
	3,807,000	HCA, Inc., 7.690%, 6/15/2025		3,897,416
	4,164,000	HCA, Inc., 8.360%, 4/15/2024		4,476,300
	1,199,000	HCA, Inc., MTN, 7.580%, 9/15/2025		1,216,985
	3,068,000	HCA, Inc., MTN, 7.750%, 7/15/2036		3,006,640
	2,256,000	Owens & Minor, Inc., 6.350%, 4/15/2016		2,443,386
	2,200,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		1,864,500

				116,342,174

		Home Construction — 0.1%
	2,006,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015(e)		481,440
	9,200,000	Pulte Group, Inc., 6.000%, 2/15/2035		7,912,000
	3,567,000	Pulte Group, Inc., 6.375%, 5/15/2033		3,183,547

				11,576,987

		Independent Energy — 0.8%
	9,787,000	EQT Corp., 8.125%, 6/01/2019		11,874,303
	60,038,000	Equitable Resources, Inc., 6.500%, 4/01/2018		68,029,838
	7,240,000	Newfield Exploration Co., 5.625%, 7/01/2024		7,004,700

				86,908,841

		Industrial Other — 0.1%
	4,893,000	Worthington Industries, Inc., 6.500%, 4/15/2020		5,264,623

		Life Insurance — 0.9%
	7,100,000	American International Group, Inc., EMTN, 5.000%, 4/26/2023, (GBP)		12,501,146
	6,910,000	American International Group, Inc., Series G, MTN, 5.850%, 1/16/2018		7,857,202
	2,036,000	American International Group, Inc., Series MP, MTN, 5.450%, 5/18/2017		2,275,873
	600,000	AXA S.A., EMTN, (fixed rate to 10/16/2019, variable rate thereafter), 6.772%, (GBP)(g)		988,339
	5,900,000	AXA S.A., EMTN, (fixed rate to 4/16/2020, variable rate thereafter), 5.250%, 4/16/2040, (EUR)		8,400,097
	15,000,000	Forethought Financial Group, Inc., 8.625%, 4/15/2021, 144A		16,622,985
	9,063,000	Mutual of Omaha Insurance Co., 6.800%, 6/15/2036, 144A		10,109,314
	6,440,000	NLV Financial Corp., 7.500%, 8/15/2033, 144A		6,524,480
	2,872,000	Penn Mutual Life Insurance Co. (The), 6.650%, 6/15/2034, 144A		3,284,276
	14,489,000	Penn Mutual Life Insurance Co. (The), 7.625%, 6/15/2040, 144A		18,692,288
	4,732,000	Unum Group, 7.125%, 9/30/2016		5,411,487

				92,667,487

See accompanying notes to financial statements.

| 18

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Local Authorities — 3.0%
	59,530,000	Autonomous Community of Madrid Spain, 4.300%, 9/15/2026, 144A, (EUR)	$	71,041,136
	800,000	City of Madrid Spain, 4.550%, 6/16/2036, (EUR)		798,203
	7,448,000	Manitoba (Province of), GMTN, 6.375%, 9/01/2015, (NZD)		6,467,052
	152,895,000	New South Wales Treasury Corp., 6.000%, 2/01/2018, (AUD)		156,825,899
	17,930,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		17,948,651
	11,815	Province of Alberta, 5.930%, 9/16/2016, (CAD)		12,467
	489,000	Province of Nova Scotia, 6.600%, 6/01/2027, (CAD)		616,291
	29,791,000	Province of Quebec, Canada, Series QC, 6.750%, 11/09/2015, (NZD)		26,135,530
	26,518,000	Queensland Treasury Corp., Series 14, 5.750%, 11/21/2014, (AUD)		25,600,394

				305,445,623

		Lodging — 0.5%
	52,516,000	Choice Hotels International, Inc., 5.700%, 8/28/2020		54,616,640
	100,000	Wyndham Worldwide Corp., 6.000%, 12/01/2016		110,655

				54,727,295

		Media Cable — 1.1%
	17,832,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		19,032,745
	13,630,000	Time Warner Cable, Inc., 4.125%, 2/15/2021		12,871,954
	4,101,000	Time Warner Cable, Inc., 5.850%, 5/01/2017		4,459,784
	64,548,000	Time Warner Cable, Inc., 6.750%, 7/01/2018		72,086,690

				108,451,173

		Media Non-Cable — 0.4%
	5,000,000	Clear Channel Communications, Inc., 9.000%, 3/01/2021		4,837,500
	358,000,000	Grupo Televisa SAB, EMTN, 7.250%, 5/14/2043, (MXN)		23,078,918
	4,482,000	News America, Inc., 8.150%, 10/17/2036		5,642,211
	6,250,000	R.R. Donnelley & Sons Co., 7.875%, 3/15/2021		6,703,125

				40,261,754

		Metals & Mining — 2.3%
	15,000,000	Alcoa, Inc., 5.400%, 4/15/2021		14,828,880
	15,060,000	Alcoa, Inc., 5.870%, 2/23/2022		15,061,626
	45,700,000	Alcoa, Inc., 5.900%, 2/01/2027		44,194,002
	5,505,000	Alcoa, Inc., 5.950%, 2/01/2037		4,889,442
	5,804,000	Alcoa, Inc., 6.750%, 1/15/2028		5,873,718
	430,000	ArcelorMittal, 6.000%, 3/01/2021		440,750
	4,085,000	ArcelorMittal, 6.750%, 2/25/2022		4,299,463
	47,920,000	ArcelorMittal, 7.250%, 3/01/2041		43,846,800
	19,365,000	ArcelorMittal, 7.500%, 10/15/2039		18,348,338
	20,625,000	Barminco Finance Pty Ltd., 9.000%, 6/01/2018, 144A		18,820,312
	4,500,000	Essar Steel Algoma, Inc., 9.875%, 6/15/2015, 144A		3,532,500
	24,155,000	Plains Exploration & Production Co., 6.500%, 11/15/2020		25,916,455
	4,612,000	United States Steel Corp., 6.650%, 6/01/2037		3,770,310
	31,210,000	United States Steel Corp., 7.000%, 2/01/2018		33,082,600
	3,655,000	Vale Overseas Ltd., 6.875%, 11/21/2036		3,706,879

				240,612,075

See accompanying notes to financial statements.

19 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)			Description	Value (†)
			Mortgage Related — 0.0%
$	49,814		FHLMC, 5.000%, 12/01/2031	$	53,850
	7,312		FNMA, 6.000%, 7/01/2029		8,102

					61,952

			Non-Captive Consumer — 2.2%
	90,196,000		SLM Corp., 5.500%, 1/25/2023		82,582,195
	62,425	(††)	SLM Corp., 6.000%, 12/15/2043		1,285,123
	2,270,000		SLM Corp., MTN, 4.625%, 9/25/2017		2,298,375
	8,895,000		SLM Corp., MTN, 7.250%, 1/25/2022		9,050,662
	641,000		SLM Corp., MTN, 8.000%, 3/25/2020		692,280
	5,616,000		SLM Corp., Series A, MTN, 0.566%, 1/27/2014(c)		5,588,302
	15,792,000		SLM Corp., Series A, MTN, 5.000%, 6/15/2018		15,544,445
	19,496,000		SLM Corp., Series A, MTN, 5.625%, 8/01/2033		15,206,880
	48,535,000		Springleaf Finance Corp., 7.750%, 10/01/2021, 144A		50,355,062
	19,414,000		Springleaf Finance Corp., 8.250%, 10/01/2023, 144A		20,190,560
	19,727,000		Springleaf Finance Corp., Series J, MTN, 6.900%, 12/15/2017		20,614,715

					223,408,599

			Non-Captive Diversified — 2.9%
	3,500,000		General Electric Capital Australia Funding Pty Ltd., 7.000%, 10/08/2015, (AUD)		3,483,083
	10,350,000		General Electric Capital Australia Funding Pty Ltd., MTN, 6.000%, 4/15/2015, (AUD)		10,055,922
	1,874,000		General Electric Capital Australia Funding Pty Ltd., MTN, 6.000%, 3/15/2019, (AUD)		1,850,594
	1,365,000		General Electric Capital Corp., GMTN, 3.100%, 1/09/2023		1,276,932
	35,580,000		General Electric Capital Corp., GMTN, 4.250%, 1/17/2018, (NZD)		28,830,083
	14,225,000		General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)		12,449,257
	51,370,000		General Electric Capital Corp., Series A, GMTN, 5.500%, 2/01/2017, (NZD)		43,575,080
	36,850,000		General Electric Capital Corp., Series A, GMTN, 7.625%, 12/10/2014, (NZD)		31,961,523
	10,247,000		General Electric Capital Corp., Series A, MTN, 0.568%, 5/13/2024(c)		9,574,469
	26,931,000		General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		23,343,558
	210,000		International Lease Finance Corp., 3.875%, 4/15/2018		202,913
	35,005,000		International Lease Finance Corp., 5.875%, 4/01/2019		36,444,266
	548,000		International Lease Finance Corp., 5.875%, 8/15/2022		539,780
	26,200,000		International Lease Finance Corp., 6.250%, 5/15/2019		27,510,000
	60,419,000		International Lease Finance Corp., 7.125%, 9/01/2018, 144A		67,518,232

					298,615,692

			Oil Field Services — 0.3%
	5,965,000		Nabors Industries, Inc., 6.150%, 2/15/2018		6,707,702
	23,338,000		Rowan Cos., Inc., 7.875%, 8/01/2019		28,130,995
	587,000		Transocean Ltd., 7.375%, 4/15/2018		678,394

					35,517,091

			Paper — 1.1%
	4,365,000		Celulosa Arauco y Constitucion S.A., 7.250%, 7/29/2019		4,985,546
	23,225,000		Georgia-Pacific LLC, 5.400%, 11/01/2020, 144A		25,989,356
	715,000		Georgia-Pacific LLC, 7.250%, 6/01/2028		872,530

See accompanying notes to financial statements.

| 20

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Paper — continued
$	2,672,000	Georgia-Pacific LLC, 7.375%, 12/01/2025	$	3,357,320
	644,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		814,981
	1,031,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		1,424,362
	7,049,000	International Paper Co., 8.700%, 6/15/2038		9,572,422
	5,270,000	Mead Corp. (The), 7.550%, 3/01/2047(b)		5,359,021
	5,068,000	Westvaco Corp., 8.200%, 1/15/2030		5,952,052
	26,007,000	Weyerhaeuser Co., 6.875%, 12/15/2033		30,047,395
	7,374,000	Weyerhaeuser Co., 7.375%, 10/01/2019		8,991,900
	13,539,000	Weyerhaeuser Co., 7.375%, 3/15/2032		16,490,055

				113,856,940

		Pipelines — 3.4%
	650,000	DCP Midstream LP, 6.450%, 11/03/2036, 144A		676,131
	528,000	Energy Transfer Partners LP, 6.125%, 2/15/2017		597,273
	3,328,000	Florida Gas Transmission Co., 7.900%, 5/15/2019, 144A		4,147,513
	14,300,000	IFM US Colonial Pipeline 2 LLC, 6.450%, 5/01/2021, 144A		15,025,940
	17,765,000	Kinder Morgan Energy Partners LP, 5.300%, 9/15/2020		19,507,125
	7,461,000	Kinder Morgan Energy Partners LP, 5.800%, 3/01/2021		8,377,121
	55,614,000	Kinder Morgan Energy Partners LP, 5.950%, 2/15/2018		63,677,029
	303,000	Kinder Morgan Finance Co. LLC, 5.700%, 1/05/2016		326,382
	27,207,950	Maritimes & Northeast Pipeline LLC, 7.500%, 5/31/2014, 144A(b)		28,149,944
	26,165,000	NGPL PipeCo LLC, 7.119%, 12/15/2017, 144A		23,090,612
	635,000	NGPL PipeCo LLC, 7.768%, 12/15/2037, 144A		517,525
	13,790,000	NiSource Finance Corp., 6.125%, 3/01/2022		15,532,091
	24,110,000	NiSource Finance Corp., 6.400%, 3/15/2018		27,903,612
	21,614,000	NiSource Finance Corp., 6.800%, 1/15/2019		25,471,299
	9,899,000	Panhandle Eastern Pipeline Co., 6.200%, 11/01/2017		11,356,024
	47,594,000	Panhandle Eastern Pipeline Co., 7.000%, 6/15/2018		55,629,438
	1,404,000	Panhandle Eastern Pipeline Co., 8.125%, 6/01/2019		1,703,435
	1,880,000	Plains All American Pipeline LP, 6.125%, 1/15/2017		2,135,860
	15,683,000	Plains All American Pipeline LP, 6.500%, 5/01/2018		18,499,526
	4,125,000	Southern Natural Gas Co., 5.900%, 4/01/2017, 144A		4,689,358
	19,574,000	Texas Eastern Transmission LP, 6.000%, 9/15/2017, 144A		22,180,865

				349,194,103

		Property & Casualty Insurance — 0.4%
	2,740,000	Fidelity National Financial, Inc., 5.500%, 9/01/2022		2,888,333
	3,083,000	Hanover Insurance Group, Inc. (The), 7.500%, 3/01/2020		3,489,006
	9,038,000	Liberty Mutual Group, Inc., 6.500%, 3/15/2035, 144A		9,724,987
	1,889,000	MBIA Insurance Corp., 11.528%, 1/15/2033, 144A(c)(f)		1,265,630
	14,575,000	Nationwide Mutual Insurance Co., 6.600%, 4/15/2034, 144A		14,757,188
	7,609,000	White Mountains Re Group Ltd., 6.375%, 3/20/2017, 144A		8,319,376
	2,212,000	XL Group PLC, 6.250%, 5/15/2027		2,487,887
	1,463,000	XL Group PLC, 6.375%, 11/15/2024		1,677,691

				44,610,098

		Property Trust — 0.4%
	36,192,000	WEA Finance LLC/WT Finance Australia Property Ltd., 6.750%, 9/02/2019, 144A		43,032,795

See accompanying notes to financial statements.

21 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Railroads — 0.1%
$	9,787,000	Canadian Pacific Railway Co., 7.250%, 5/15/2019	$	12,001,553
	237,000	Missouri Pacific Railroad Co., 4.750%, 1/01/2030(b)		213,300
	1,701,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(b)		1,411,830
	191,000	Missouri Pacific Railroad Co., Series A, 4.750%, 1/01/2020(b)		177,630

				13,804,313

		Real Estate Operations/Development — 0.1%
	10,276,000	First Industrial LP, 5.950%, 5/15/2017		10,912,136

		Refining — 0.1%
	7,700,000	Reliance Holdings USA, Inc., 5.400%, 2/14/2022, 144A		7,716,278

		REITs – Apartments — 0.3%
	12,243,000	Camden Property Trust, 5.000%, 6/15/2015		13,015,937
	16,491,000	Camden Property Trust, 5.700%, 5/15/2017		18,334,925

				31,350,862

		REITs – Diversified — 0.3%
	4,140,000	Duke Realty LP, 5.950%, 2/15/2017		4,618,075
	19,574,000	Duke Realty LP, 6.500%, 1/15/2018		22,520,180

				27,138,255

		REITs – Healthcare — 0.1%
	5,972,000	Health Care REIT, Inc., 6.500%, 3/15/2041		6,369,586

		REITs – Office Property — 0.4%
	20,817,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		22,912,710
	11,306,000	Highwoods Properties, Inc., 7.500%, 4/15/2018		13,279,824

				36,192,534

		REITs – Shopping Centers — 0.1%
	4,893,000	Equity One, Inc., 6.000%, 9/15/2017		5,464,933

		REITs – Single Tenant — 0.4%
	5,862,000	Realty Income Corp., 5.750%, 1/15/2021		6,471,361
	25,529,000	Realty Income Corp., 6.750%, 8/15/2019		30,116,536

				36,587,897

		REITs – Warehouse/Industrials — 0.6%
	3,873,000	ProLogis LP, 5.625%, 11/15/2015		4,151,217
	11,179,000	ProLogis LP, 5.625%, 11/15/2016		12,370,871
	10,889,000	ProLogis LP, 5.750%, 4/01/2016		11,980,176
	9,698,000	ProLogis LP, 6.625%, 5/15/2018		11,339,668
	18,869,000	ProLogis LP, 7.375%, 10/30/2019		23,128,450

				62,970,382

		Restaurants — 0.1%
	10,320,000	Darden Restaurants, Inc., 6.000%, 8/15/2035		9,987,582

		Retailers — 0.3%
	5,296,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		4,157,360
	6,397,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		4,461,908
	6,076,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		4,070,920

See accompanying notes to financial statements.

| 22

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Retailers — continued
$	10,467,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027	$	11,794,163
	8,064,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		8,221,393

				32,705,744

		Sovereigns — 1.3%
	43,590,000	Republic of Brazil, 8.500%, 1/05/2024, (BRL)		17,769,961
	23,848,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		10,733,375
	52,555,000	Republic of Croatia, 6.750%, 11/05/2019, 144A		56,036,769
	33,600,000	Republic of Iceland, 5.875%, 5/11/2022, 144A		34,524,000
	1,415,381,000	Republic of Iceland, 6.000%, 10/13/2016, (ISK)		8,219,568
	391,985,000	Republic of Iceland, 7.250%, 10/26/2022, (ISK)		2,311,398
	820,777,000	Republic of Iceland, 8.750%, 2/26/2019, (ISK)		5,204,827

				134,799,898

		Supermarkets — 0.4%
	4,130,000	American Stores Co., Series B, MTN, 7.100%, 3/20/2028		4,935,350
	1,120,000	Delhaize Group S.A., 5.700%, 10/01/2040		1,094,079
	3,269,000	Kroger Co. (The), 6.400%, 8/15/2017		3,767,336
	6,595,000	New Albertson’s, Inc., 7.450%, 8/01/2029		5,292,488
	7,875,000	New Albertson’s, Inc., 8.000%, 5/01/2031		6,477,187
	979,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		704,880
	17,290,000	SUPERVALU, Inc., 6.750%, 6/01/2021, 144A		16,425,500

				38,696,820

		Supranational — 0.6%
	11,745,000	European Bank for Reconstruction & Development, EMTN, 9.000%, 4/28/2014, (BRL)		5,293,543
	9,640,000	European Investment Bank, MTN, 6.000%, 8/06/2020, (AUD)		9,641,880
	12,982,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		11,372,896
	15,070,000	International Bank for Reconstruction & Development, 1.430%, 3/05/2014, (SGD)		12,039,099
	58,420,000	International Finance Corp., GMTN, 5.000%, 12/21/2015, (BRL)		24,208,333

				62,555,751

		Technology — 2.1%
	4,600,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		3,887,000
	1,028,000	Arrow Electronics, Inc., 6.875%, 6/01/2018		1,174,078
	1,507,000	Avnet, Inc., 6.625%, 9/15/2016		1,704,574
	56,271,000	Corning, Inc., 7.000%, 5/15/2024		67,420,086
	7,487,000	Corning, Inc., 7.250%, 8/15/2036		8,977,984
	7,051,000	Equifax, Inc., 7.000%, 7/01/2037		8,022,459
	112,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016		114,800
	70,969,000	Ingram Micro, Inc., 5.250%, 9/01/2017		75,363,968
	7,795,000	Intuit, Inc., 5.750%, 3/15/2017		8,684,791
	19,078,000	KLA-Tencor Corp., 6.900%, 5/01/2018		22,470,507
	1,502,000	Motorola Solutions, Inc., 6.625%, 11/15/2037		1,527,893
	2,115,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		2,563,289
	5,603,000	Tyco Electronics Group S.A., 6.550%, 10/01/2017		6,460,629

See accompanying notes to financial statements.

23 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)			Description	Value (†)
			Technology — continued
$	561,000		Xerox Corp., 6.350%, 5/15/2018	$	644,317
	7,110,000		Xerox Corp., 6.750%, 2/01/2017		8,125,194

					217,141,569

			Textile — 0.0%
	3,755,000		Phillips-Van Heusen Corp., 7.750%, 11/15/2023		4,350,584

			Transportation Services — 0.7%
	8,436,000		Erac USA Finance Co., 6.375%, 10/15/2017, 144A		9,791,834
	2,824,000		Erac USA Finance Co., 6.700%, 6/01/2034, 144A		3,193,012
	51,504,000		Erac USA Finance Co., 7.000%, 10/15/2037, 144A		61,025,905

					74,010,751

			Treasuries — 20.5%
	106,195,000		Canadian Government, 1.000%, 8/01/2016, (CAD)		101,946,375
	206,210,000		Canadian Government, 2.250%, 8/01/2014, (CAD)		202,168,080
	372,145,000		Canadian Government, 2.500%, 6/01/2015, (CAD)		369,348,629
	90,055,000		Canadian Government, 2.750%, 9/01/2016, (CAD)		90,729,943
	156,655,000		Canadian Government, 3.000%, 12/01/2015, (CAD)		157,807,803
	79,485,000		Canadian Government, 3.750%, 6/01/2019, (CAD)		84,326,405
	4,159,000		Canadian Government, 4.000%, 6/01/2016, (CAD)		4,320,789
	183,949,000		Canadian Government, 4.250%, 6/01/2018, (CAD)		197,980,234
	1,130,000		Italy Buoni Poliennali Del Tesoro, 5.000%, 8/01/2034, (EUR)		1,527,663
	1,130,000		Italy Buoni Poliennali Del Tesoro, 5.250%, 11/01/2029, (EUR)		1,586,232
	1,120,000		Italy Buoni Poliennali Del Tesoro, 5.750%, 2/01/2033, (EUR)		1,652,745
	2,105,000	(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		18,383,254
	109,763,000		New Zealand Government Bond, 6.000%, 12/15/2017, (NZD)		98,484,137
	974,276,000		Norwegian Government Bond, 4.250%, 5/19/2017, (NOK)		174,918,450
	802,302,000		Norwegian Government Bond, 5.000%, 5/15/2015, (NOK)		140,465,458
	18,786,446		Portugal Obrigacoes do Tesouro OT, 3.850%, 4/15/2021, 144A, (EUR)		21,177,818
	4,599,829		Portugal Obrigacoes do Tesouro OT, 4.800%, 6/15/2020, 144A, (EUR)		5,591,159
	43,375,000		Portugal Obrigacoes do Tesouro OT, 4.950%, 10/25/2023, 144A, (EUR)		50,934,143
	6,000,000		Singapore Government Bond, 1.375%, 10/01/2014, (SGD)		4,832,531
	227,965,000		U.S. Treasury Bond, 2.750%, 11/15/2042		188,676,600
	235,390,000		U.S. Treasury Bond, 2.875%, 5/15/2043		199,787,262

					2,116,645,710

			Wireless — 0.9%
	559,910,000		America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)		40,044,334
	31,416,000		Cellco Partnership/Verizon Wireless Capital LLC, 8.500%, 11/15/2018		40,259,164
	6,373,000		Sprint Capital Corp., 6.875%, 11/15/2028		5,687,902
	2,594,000		Sprint Capital Corp., 6.900%, 5/01/2019		2,665,335
	612,000		Sprint Capital Corp., 8.750%, 3/15/2032		621,945

					89,278,680

			Wirelines — 4.7%
	406,000		Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		489,778
	2,936,000		BellSouth Telecommunications, Inc., 5.850%, 11/15/2045		2,727,350
	62,040,000		CenturyLink, Inc., 6.450%, 6/15/2021		61,729,800
	4,990,000		CenturyLink, Inc., Series G, 6.875%, 1/15/2028		4,540,900

See accompanying notes to financial statements.

| 24

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Wirelines — continued
$	2,708,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039	$	2,416,890
	103,506,000	Deutsche Telekom International Finance BV, 6.000%, 7/08/2019		120,960,424
	24,103,000	Embarq Corp., 7.995%, 6/01/2036		24,538,565
	825,000	Level 3 Financing, Inc., 7.000%, 6/01/2020		833,250
	200,000	Level 3 Financing, Inc., 9.375%, 4/01/2019		220,500
	5,200,000	Oi S.A., 9.750%, 9/15/2016, 144A, (BRL)		2,054,848
	8,450,000	Portugal Telecom International Finance BV, EMTN, 4.500%, 6/16/2025, (EUR)		10,082,659
	18,850,000	Portugal Telecom International Finance BV, EMTN, 5.000%, 11/04/2019, (EUR)		25,628,737
	200,000	Portugal Telecom International Finance BV, EMTN, 5.625%, 2/08/2016, (EUR)		282,746
	300,000	Portugal Telecom International Finance BV, GMTN, 4.375%, 3/24/2017, (EUR)		410,945
	1,698,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,833,840
	2,755,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		2,451,950
	4,370,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		4,435,550
	3,469,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		3,278,205
	333,000	Qwest Corp., 6.500%, 6/01/2017		375,332
	14,480,000	Qwest Corp., 6.875%, 9/15/2033		14,026,718
	4,668,000	Qwest Corp., 7.200%, 11/10/2026		4,670,451
	9,077,000	Qwest Corp., 7.250%, 9/15/2025		10,152,243
	9,474,000	Qwest Corp., 7.250%, 10/15/2035		9,298,210
	46,411,000	Telecom Italia Capital S.A., 6.000%, 9/30/2034		38,170,866
	23,660,000	Telecom Italia Capital S.A., 6.375%, 11/15/2033		20,322,094
	4,200,000	Telefonica Emisiones SAU, 4.570%, 4/27/2023		4,027,703
	525,000	Telefonica Emisiones SAU, 5.134%, 4/27/2020		537,513
	975,000	Telefonica Emisiones SAU, 5.462%, 2/16/2021		998,363
	14,375,000	Telefonica Emisiones SAU, 7.045%, 6/20/2036		15,257,582
	1,700,000	Telefonica Emisiones SAU, EMTN, 5.289%, 12/09/2022, (GBP)		2,762,645
	2,700,000	Telefonica Emisiones SAU, EMTN, 5.375%, 2/02/2026, (GBP)		4,250,532
	2,100,000	Telefonica Emisiones SAU, EMTN, 5.445%, 10/08/2029, (GBP)		3,223,347
	8,800,000	Telefonica Emisiones SAU, EMTN, 5.597%, 3/12/2020, (GBP)		14,947,989
	14,137,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		14,801,544
	54,665,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)		58,030,715
	2,642,000	Verizon New England, Inc., 7.875%, 11/15/2029		3,082,176
	2,095,000	Verizon Pennsylvania, Inc., 6.000%, 12/01/2028		2,038,512

				489,891,472

		Total Non-Convertible Bonds (Identified Cost $8,358,005,814)		9,023,012,663


	Convertible Bonds — 4.6%
		Automotive — 0.7%
	34,827,000	Ford Motor Co., 4.250%, 11/15/2016		68,805,092

		Independent Energy — 0.4%
	34,700,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		34,092,750
	11,225,000	Chesapeake Energy Corp., 2.750%, 11/15/2035		11,589,812

				45,682,562

		Life Insurance — 0.8%
	72,915,000	Old Republic International Corp., 3.750%, 3/15/2018		86,176,416

See accompanying notes to financial statements.

25 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Metals & Mining — 0.2%
$	17,800,000	United States Steel Corp., 2.750%, 4/01/2019	$	19,702,375

		REITs – Warehouse/Industrials — 0.3%
	27,359,000	ProLogis LP, 3.250%, 3/15/2015		30,966,968

		Technology — 2.2%
	35,120,000	Intel Corp., 2.950%, 12/15/2035		38,017,400
	137,016,000	Intel Corp., 3.250%, 8/01/2039		169,642,935
	11,515,000	Lam Research Corp., Series B, 1.250%, 5/15/2018		13,853,984
	385,192	Liberty Media LLC, 3.500%, 1/15/2031		198,374
	30,000	Micron Technology, Inc., Series B, 1.875%, 8/01/2031		56,231
	85,000	Micron Technology, Inc., Series C, 2.375%, 5/01/2032		162,563

				221,931,487

		Wirelines — 0.0%
	2,926,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(b)		3,551,433

		Total Convertible Bonds (Identified Cost $379,234,419)		476,816,333


	Municipals — 0.8%
		District of Columbia — 0.2%
	14,680,000	Metropolitan Washington Airports Authority, 7.462%, 10/01/2046		16,697,766

		Illinois — 0.5%
	530,000	Chicago O’Hare International Airport, Series A, (AGMC insured), 4.500%, 1/01/2038		490,165
	24,640,000	State of Illinois, 5.100%, 6/01/2033		21,846,564
	33,395,000	State of Illinois, Series B, 5.520%, 4/01/2038		27,745,234

				50,081,963

		Michigan — 0.0%
	2,345,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034		1,848,188

		Ohio — 0.0%
	5,075,000	Buckeye Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/01/2047		3,794,831

		Virginia — 0.1%
	13,845,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046		9,585,447

		Total Municipals (Identified Cost $88,240,612)		82,008,195

		Total Bonds and Notes (Identified Cost $8,825,480,845)		9,581,837,191


	Senior Loans — 0.5%
		Non-Captive Diversified — 0.4%
	27,638,933	AWAS Finance Luxembourg 2012 S.A., New Term Loan, 3.500%, 7/16/2018(c)		27,638,933
	17,078,112	AWAS Finance Luxembourg S.A.R.L., Term Loan B, 3.500%, 6/10/2016(c)		17,056,765

				44,695,698

See accompanying notes to financial statements.

| 26

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Supermarket — 0.1%
$	9,200,651	Supervalu, Inc., Refi Term Loan B, 5.000%, 3/21/2019(c)	$	9,166,149

		Total Senior Loans (Identified Cost $53,917,697)		53,861,847


Shares
	Common Stocks — 2.5%
		Electronic Equipment, Instruments & Components — 2.5%
	17,550,000	Corning, Inc. (Identified Cost $226,654,590)		256,054,500


	Preferred Stocks — 0.2%
		Independent Energy — 0.0%
	43,031	Chesapeake Energy Corp., 5.000%		3,997,580

		Metals & Mining — 0.1%
	340,285	ArcelorMittal, 6.000%		7,312,725

		REITs – Diversified — 0.1%
	258,873	Weyerhaeuser Co., Series A, 6.375%		13,715,091

		Total Preferred Stocks (Identified Cost $25,066,559)		25,025,396


Principal Amount (‡)
	Short-Term Investments — 2.9%
$	147,553	Repurchase Agreement with State Street Bank and Trust Company, dated 9/30/2013 at 0.000%, to be repurchased at $147,553 on 10/01/2013 collateralized by $170,000 Federal National Mortgage Association, 2.080% due 11/02/2022 valued at $157,960 including accrued interest (Note 2 of Notes to Financial Statements)		147,553
	296,199,438	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $296,199,438 on 10/01/2013 collateralized by $294,755,000 U.S. Treasury Note, 2.625% due 7/31/2014 valued at $302,123,875 including accrued interest (Note 2 of Notes to Financial Statements)		296,199,438

		Total Short-Term Investments (Identified Cost $296,346,991)		296,346,991


		Total Investments — 98.8% (Identified Cost $9,427,466,682)(a)		10,213,125,925
		Other assets less liabilities — 1.2%		125,684,550

		Net Assets — 100.0%	$	10,338,810,475


	(‡)	Principal Amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 25.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)



(a)	Federal Tax Information:
	At September 30, 2013, the net unrealized appreciation on investments based on a cost of $9,504,169,521 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	$	892,918,119
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(183,961,715	)

	Net unrealized appreciation	$	708,956,404

(b)	Illiquid security. At September 30, 2013, the value of these securities amounted to $68,797,084 or 0.7% of net assets.
(c)	Variable rate security. Rate as of September 30, 2013 is disclosed.
(d)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(e)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
(f)	Non-income producing security.
(g)	Perpetual bond with no specified maturity date.

144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the value of Rule 144A holdings amounted to $1,699,623,657 or 16.4% of net assets.
ABS	Asset-Backed Securities
AGMC	Assured Guaranty Municipal Corp.
EMTN	Euro Medium Term Note
FHLMC	Federal Home Loan Mortgage Corp.
FNMA	Federal National Mortgage Association
GMTN	Global Medium Term Note
MTN	Medium Term Note
REITs	Real Estate Investment Trusts
REMIC	Real Estate Mortgage Investment Conduit

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

See accompanying notes to financial statements.

| 28

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Investment Grade Bond Fund – (continued)

Industry Summary at September 30, 2013 (Unaudited)


Treasuries	20.5	%
Banking	15.4
Wirelines	4.8
Technology	4.2
Pipelines	3.4
Non-Captive Diversified	3.3
Local Authorities	3.0
Airlines	2.9
Metals & Mining	2.6
Commercial Mortgage-Backed Securities	2.5
Electronic Equipment, Instruments & Components	2.5
Non-Captive Consumer	2.2
Electric	2.0
Other Investments, less than 2% each	26.6
Short-Term Investments	2.9

Total Investments	98.8
Other assets less liabilities	1.2

Net Assets	100.0	%

Currency Exposure Summary at September 30, 2013 (Unaudited)


United States Dollar	68.4	%
Canadian Dollar	13.8
New Zealand Dollar	5.1
Australian Dollar	3.3
Norwegian Krone	3.1
Euro	2.2
Other, less than 2% each	2.9

Total Investments	98.8
Other assets less liabilities	1.2

Net Assets	100.0	%

See accompanying notes to financial statements.

29 |

This Page Intentionally Left Blank

| 30

Statement of Assets and Liabilities

September 30, 2013


ASSETS
Investments at cost	$	9,427,466,682
Net unrealized appreciation		785,659,243

Investments at value		10,213,125,925
Foreign currency at value (identified cost $1,679,739)		1,724,764
Receivable for Fund shares sold		21,839,560
Dividends and interest receivable		130,471,616
Tax reclaims receivable		734,782

TOTAL ASSETS		10,367,896,647

LIABILITIES
Payable for Fund shares redeemed		24,056,987
Management fees payable (Note 5)		3,404,117
Deferred Trustees’ fees (Note 5)		492,590
Administrative fees payable (Note 5)		376,817
Payable to distributor (Note 5d)		161,763
Other accounts payable and accrued expenses		593,898

TOTAL LIABILITIES		29,086,172

NET ASSETS	$	10,338,810,475

NET ASSETS CONSIST OF:
Paid-in capital	$	9,346,058,338
Undistributed net investment income		15,275,810
Accumulated net realized gain on investments and foreign currency transactions		191,516,235
Net unrealized appreciation on investments and foreign currency translations		785,960,092

NET ASSETS	$	10,338,810,475

See accompanying notes to financial statements.

31 |

Statement of Assets and Liabilities (continued)

September 30, 2013


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets		$	2,431,718,261

Shares of beneficial interest			199,014,246

Net asset value and redemption price per share	��	$	12.22

Offering price per share (100/95.50 of net asset value) (Note 1)		$	12.80

Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets		$	7,972,156

Shares of beneficial interest			655,817

Net asset value and offering price per share		$	12.16

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets		$	1,746,822,151

Shares of beneficial interest			144,193,411

Net asset value and offering price per share		$	12.11

Class N shares:
Net assets		$	40,883

Shares of beneficial interest			3,345

Net asset value, offering and redemption price per share		$	12.22

Class Y shares:
Net assets		$	6,130,700,412

Shares of beneficial interest			501,383,381

Net asset value, offering and redemption price per share		$	12.23

Admin Class shares:
Net assets		$	21,556,612

Shares of beneficial interest			1,767,279

Net asset value, offering and redemption price per share		$	12.20

See accompanying notes to financial statements.

| 32

Statement of Operations

For the Year Ended September 30, 2013


INVESTMENT INCOME
Interest	$	547,242,625
Dividends		7,420,149

		554,662,774

Expenses
Management fees (Note 5)		47,342,571
Service and distribution fees (Note 5)		28,567,568
Administrative fees (Note 5)		5,235,915
Trustees’ fees and expenses (Note 5)		264,476
Transfer agent fees and expenses (Notes 5 and 6)		13,449,033
Audit and tax services fees		57,997
Custodian fees and expenses		533,563
Legal fees		160,605
Registration fees		294,328
Shareholder reporting expenses		1,371,260
Miscellaneous expenses		280,964

Total expenses		97,558,280
Less waiver and/or expense reimbursement (Note 5)		(11	)

Net expenses		97,558,269

Net investment income		457,104,505

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		287,686,240
Foreign currency transactions		(8,428,307	)
Net change in unrealized appreciation (depreciation) on:
Investments		(589,055,516	)
Foreign currency translations		(372,050	)

Net realized and unrealized loss on investments and foreign currency transactions		(310,169,633	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	146,934,872

See accompanying notes to financial statements.

33 |

Statement of Changes in Net Assets


	Year Ended September 30, 2013			Year Ended September 30, 2012
FROM OPERATIONS:
Net investment income	$	457,104,505		$	448,965,654
Net realized gain on investments and foreign currency transactions		279,257,933			183,960,071
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(589,427,566	)		573,143,807

Net increase in net assets resulting from operations		146,934,872			1,206,069,532

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(137,547,979	)		(140,578,594	)
Class B		(434,962	)		(558,660	)
Class C		(86,375,065	)		(93,060,242	)
Class N		(330	)		—
Class Y		(341,402,630	)		(295,684,484	)
Admin Class		(914,415	)		(455,185	)
Class J		—			(1,366,652	)
Net realized capital gains
Class A		(27,197,220	)		(26,530,935	)
Class B		(106,865	)		(123,858	)
Class C		(20,576,316	)		(20,065,620	)
Class Y		(63,063,034	)		(48,043,542	)
Admin Class		(171,884	)		(72,361	)
Class J		—			(427,583	)

Total distributions		(677,790,700	)		(626,967,716	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		(1,217,980,423	)		1,700,532,135

Net increase (decrease) in net assets		(1,748,836,251	)		2,279,633,951
NET ASSETS
Beginning of the year		12,087,646,726			9,808,012,775

End of the year	$	10,338,810,475		$	12,087,646,726

UNDISTRIBUTED NET INVESTMENT INCOME	$	15,275,810		$	95,851,767

See accompanying notes to financial statements.

| 34

Financial Highlights

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)		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
9/30/2013	$	12.76	$	0.48	$	(0.30	)	$	0.18		$	(0.60	)	$	(0.12	)	$	(0.72	)
9/30/2012		12.12		0.51		0.86			1.37			(0.62	)		(0.11	)		(0.73	)
9/30/2011		12.56		0.57		(0.15	)		0.42			(0.60	)		(0.26	)		(0.86	)
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	)
Class B
9/30/2013		12.70		0.39		(0.31	)		0.08			(0.50	)		(0.12	)		(0.62	)
9/30/2012		12.06		0.42		0.86			1.28			(0.53	)		(0.11	)		(0.64	)
9/30/2011		12.50		0.47		(0.14	)		0.33			(0.51	)		(0.26	)		(0.77	)
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	)
Class C
9/30/2013		12.66		0.39		(0.32	)		0.07			(0.50	)		(0.12	)		(0.62	)
9/30/2012		12.03		0.42		0.85			1.27			(0.53	)		(0.11	)		(0.64	)
9/30/2011		12.47		0.47		(0.14	)		0.33			(0.51	)		(0.26	)		(0.77	)
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	)
Class N
9/30/2013*		12.66		0.34		(0.46	)		(0.12	)		(0.32	)		—			(0.32	)
Class Y
9/30/2013		12.77		0.52		(0.31	)		0.21			(0.63	)		(0.12	)		(0.75	)
9/30/2012		12.13		0.54		0.86			1.40			(0.65	)		(0.11	)		(0.76	)
9/30/2011		12.56		0.60		(0.14	)		0.46			(0.63	)		(0.26	)		(0.89	)
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	)
Admin Class
9/30/2013		12.74		0.45		(0.30	)		0.15			(0.57	)		(0.12	)		(0.69	)
9/30/2012		12.11		0.48		0.85			1.33			(0.59	)		(0.11	)		(0.70	)
9/30/2011		12.55		0.54		(0.15	)		0.39			(0.57	)		(0.26	)		(0.83	)
9/30/2010**		11.80		0.33		0.73			1.06			(0.31	)		—			(0.31	)

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

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

See accompanying notes to financial statements.

35 |



							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 (%)

$	12.22		1.34		$	2,431,718		0.83		0.83		3.85		30
	12.76		11.74			2,960,119		0.84		0.84		4.17		19
	12.12		3.47			2,705,810		0.81		0.81		4.56		19
	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

	12.16		0.57			7,972		1.58		1.58		3.09		30
	12.70		10.96			12,507		1.59		1.59		3.42		19
	12.06		2.70			13,549		1.56		1.56		3.81		19
	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

	12.11		0.50			1,746,822		1.58		1.58		3.10		30
	12.66		10.91			2,281,142		1.59		1.59		3.42		19
	12.03		2.71			2,091,834		1.56		1.56		3.81		19
	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

	12.22		(0.95	)		41		0.65		0.78		4.18		30

	12.23		1.60			6,130,700		0.58		0.58		4.11		30
	12.77		12.01			6,817,911		0.59		0.59		4.41		19
	12.13		3.81			4,887,742		0.56		0.56		4.81		19
	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

	12.20		1.10			21,557		1.08		1.08		3.62		30
	12.74		11.41			15,968		1.09		1.09		3.89		19
	12.11		3.26			5,967		1.07		1.07		4.32		19
	12.55		9.13			879		1.08		7.68		4.06		25

(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, if applicable. Without this waiver/reimbursement, 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.

| 36

Notes to Financial Statements

September 30, 2013

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”).

The Fund is a diversified investment company.

The Fund offers Class A, Class C, Class Y and Admin Class shares. Effective February 1, 2013, the Fund began offering Class N shares. Effective after the close of business on January 11, 2012, Class J shares were liquidated. Effective October 12, 2007, Class B shares are no longer offered. Existing Class B shareholders may continue to reinvest dividends into Class B shares and exchange their Class B shares for Class B shares of other Natixis Funds subject to existing exchange privileges as described in the prospectus.

Class A shares are sold with a maximum front-end sales charge of 4.50%. Class B shares do not pay a front-end sales charge; 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 N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are primarily intended for employer-sponsored retirement plans. Class Y shares are 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. Class N and Admin Class shares are offered exclusively through intermediaries.

Most expenses of the Trust 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 Trust. Expenses of the Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (including the Rule 12b-1 service and distribution fees for Class A, Class B, Class C and Admin Class and transfer agent fees for Class N). In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of the Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

37 |

Notes to Financial Statements (continued)

September 30, 2013

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 year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the 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) and unlisted equity securities are generally valued on the basis of evaluated bids furnished to the Fund by an independent pricing service, recommended by the investment adviser and approved by the Board of Trustees, which 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. Senior loans are priced at bid prices supplied by an independent pricing service, if available. 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 independent pricing services recommended by the investment adviser and approved by the Board of Trustees. Such independent 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 prices may also be used to value debt and equity securities and senior loans where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Investments in other open-end investment companies are valued at their net asset value each day. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Fund’s investment adviser under the general supervision of the Board of Trustees.

| 38

Notes to Financial Statements (continued)

September 30, 2013

securities are fair valued on a daily basis 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.

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, to acquire exposure to foreign currencies or to hedge the Fund’s investments against currency

39 |

Notes to Financial Statements (continued)

September 30, 2013

fluctuation. A contract can also be used to offset a previous contract. These contracts involve market risk in excess of the unrealized gain or loss reflected in the 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. Contracts are traded over-the-counter directly with a counterparty. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Certain contracts may require the movement of cash and/or securities as collateral for the Fund’s or counterparty’s net obligations under the contracts.

No forward foreign currency contracts were held by the Fund during the year ended September 30, 2013.

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 September 30, 2013 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 twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Fund. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

The Fund may be subject to foreign withholding taxes on investment income and taxes on capital gains on investments that are accrued and paid based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign withholding taxes on dividend and interest income are reflected on the Statement of Operations as a reduction of investment income, net of amounts eligible to be reclaimed. Dividends and interest receivable on the Statement of Assets and Liabilities are net of foreign withholding taxes. Foreign withholding taxes eligible to be reclaimed are reflected on the Statement of Assets and Liabilities as tax reclaims receivable. Capital gains taxes paid are included in net realized gain (loss) on investments in the Statement of Operations. Accrued but unpaid capital gains taxes are reflected as foreign taxes payable on the Statement of Assets and Liabilities, if applicable, and reduce unrealized gains on investments. In the event that realized gains

| 40

Notes to Financial Statements (continued)

September 30, 2013

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

f. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined 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, paydowns, contingent payment debt instruments 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, 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.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2013 and 2012 were as follows:


2013 Distributions Paid From:					2012 Distributions Paid From:
Ordinary Income	Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
$575,333,718	$	102,456,982	$	677,790,700	$	556,649,900	$	70,317,816	$	626,967,716

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.

As of September 30, 2013, the components of distributable earnings on a tax basis were as follows:


Undistributed ordinary income	$	53,915,953
Undistributed long-term capital gains		230,446,858

Total undistributed earnings		284,362,811
Unrealized appreciation		709,257,253

Total accumulated earnings	$	993,620,064

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

41 |

Notes to Financial Statements (continued)

September 30, 2013

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 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 year ended September 30, 2013, 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.

j. New Accounting Pronouncement. In December 2011, Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” was issued and is effective for interim and annual periods beginning after January 1, 2013. The ASU creates new disclosure requirements with respect to an entity’s rights of setoff and related arrangements associated with its financial instruments. Management has evaluated the impact the adoption of ASU 2011-11 and will incorporate the new disclosures required in the March 31, 2014 report.

3. Fair Value Measurements. In accordance with accounting standards related to fair value measurements and disclosures, the Fund has categorized the inputs utilized in

| 42

Notes to Financial Statements (continued)

September 30, 2013

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.

The following is a summary of the inputs used to value the Fund’s investments as of September 30, 2013, at value:

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	—	$	29,247,839	$	67,016,089	(b)	$	96,263,928
Airlines		—		3,164,613		292,528,124	(b)		295,692,737
Non-Captive Consumer		1,285,123		222,123,476		—			223,408,599
All Other Non-Convertible Bonds(a)		—		8,407,647,399		—			8,407,647,399

Total Non-Convertible Bonds		1,285,123		8,662,183,327		359,544,213			9,023,012,663

Convertible Bonds(a)		—		476,816,333		—			476,816,333
Municipals(a)		—		82,008,195		—			82,008,195

Total Bonds and Notes		1,285,123		9,221,007,855		359,544,213			9,581,837,191

Senior Loans(a)		—		53,861,847		—			53,861,847
Common Stocks(a)		256,054,500		—		—			256,054,500
Preferred Stocks(a)		25,025,396		—		—			25,025,396
Short-Term Investments		—		296,346,991		—			296,346,991

Total	$	282,365,019	$	9,571,216,693	$	359,544,213		$	10,213,125,925

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

(b)	Valued using broker-dealer bid prices.

43 |

Notes to Financial Statements (continued)

September 30, 2013

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

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of September 30, 2012 and/or September 30, 2013:

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2012		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	5,642,124	$	—	$	—	$	—		$	—
ABS Other		—		—		689		(2,552,527	)		4,500,000
Airlines		—		396,004		890,087		(7,113,928	)		45,485,000
Banking		38,219,714		—		—		—			—
Electric		1,889,250		—		—		785,750			—

Total	$	45,751,088	$	396,004	$	890,776	$	(8,880,705	)	$	49,985,000

| 44

Notes to Financial Statements (continued)

September 30, 2013

Asset Valuation Inputs (continued)


Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2013		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2013
Bonds and Notes
Non-Convertible Bonds
ABS Car Loan	$	—		$	—	$	(5,642,124	)	$	—	$	—
ABS Other		(5,110,341	)		70,178,268		—			67,016,089		(2,552,527	)
Airlines		(22,678,843	)		275,549,804		—			292,528,124		(7,113,928	)
Banking		—			—		(38,219,714	)		—		—
Electric		(2,675,000	)		—		—			—		—

Total	$	(30,464,184	)	$	345,728,072	$	(43,861,838	)	$	359,544,213	$	(9,666,455	)

Debt securities valued at $43,861,838 were transferred from Level 3 to Level 2 during the period ended September 30, 2013. At September 30, 2013, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

Debt securities valued at $345,728,072 were transferred from Level 2 to Level 3 during the period ended September 30, 2013. At September 30, 2013, these securities were valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the securities.

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

4. Purchases and Sales of Securities. For the year ended September 30, 2013, purchases and sales of securities (excluding short-term investments and U.S. Government/Agency securities and including paydowns) were $2,134,441,592 and $3,171,282,334, respectively. Purchases and sales of U.S. Government/Agency securities (excluding short-term investments and including paydowns) were $1,188,157,420 and $854,961,247, 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

45 |

Notes to Financial Statements (continued)

September 30, 2013

Fund pays a management fee at the annual rate, calculated daily and payable monthly, based on the Fund’s average daily net assets:


Percentage of Average Daily Net Assets
First $15 billion	Over $15 billion
0.40%		0.38%

Prior to July 1, 2013, the Fund paid a management fee at an annual rate of 0.40% 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, 2014 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 these undertakings.

For the year ended September 30, 2013, 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 N		Class Y		Admin Class
0.95%		1.70%		1.70%		0.65%		0.70%		1.20%

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 annual operating expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such waived/reimbursed fees or expenses more than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed.

For the year ended September 30, 2013, the management fees for the Fund were $47,342,571 (effective rate of 0.40% of average daily net assets).

For the year ended September 30, 2013, class-specific expenses of $11 have been reimbursed for Class N shares. Expense reimbursements are subject to possible recovery until September 30, 2014.

No expenses were recovered for the Fund during year ended September 30, 2013 under the terms of the expense limitation agreement.

Certain officers and employees of Loomis Sayles are also officers or Trustees of the Trust. Loomis Sayles’ general partner is indirectly owned by Natixis Global Asset

| 46

Notes to Financial Statements (continued)

September 30, 2013

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

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

Also under the Class B and Class C Plans, the Fund pays NGAM Distribution 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 NGAM Distribution in connection with the marketing or sale of Class B and Class C shares.

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

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

47 |

Notes to Financial Statements (continued)

September 30, 2013

For the year ended September 30, 2013, the service and distribution fees for the Fund were as follows:


Service Fees							Distribution Fees
Class A	Class B		Class C		Admin Class		Class B		Class C		Admin Class
$7,193,867	$	26,502	$	5,291,007	$	51,833	$	79,506	$	15,873,020	$	51,833

c. Administrative Fees. NGAM Advisors, L.P. (“NGAM Advisors”) provides certain administrative services for the Fund and contracts with State Street Bank to serve as sub-administrator. NGAM Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and NGAM Advisors, the Fund pays NGAM Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, 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.

For the year ended September 30, 2013, the administrative fees for the Fund were $5,235,915.

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

For the year ended September 30, 2013, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statement of Operations) for the Fund were $12,707,230.

As of September 30, 2013, the Fund owes NGAM Distribution $161,763 in reimbursements for sub-transfer agent fees.

| 48

Notes to Financial Statements (continued)

September 30, 2013

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

e. Commissions. Commissions (including CDSCs) on Fund shares retained by NGAM Distribution were $2,138,856 for the year ended September 30, 2013.

A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Fund 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

49 |

Notes to Financial Statements (continued)

September 30, 2013

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 in the Statement of Assets and Liabilities.

g. Affiliated Ownership. As of September 30, 2013, Loomis Sayles Employees’ Profit Sharing Retirement Plan held shares of the Fund representing 0.06% of the Fund’s net assets.

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

6. Class-Specific Transfer Agent Fees and Expenses. For the period from February 1, 2013 through September 30, 2013, the Fund incurred the following class-specific transfer agent fees and expenses:


	Class N
Transfer Agent Fees and Expenses	$	25

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 0.10% 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 year ended September 30, 2013, 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. From time to time, the Fund may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of such accounts could have material impacts on the Fund. As of September 30, 2013, based on management’s evaluation of the shareholder account base, the Fund had accounts representing controlling ownership of more than 5% of the Fund’s total outstanding shares. The number of such accounts, based on

| 50

Notes to Financial Statements (continued)

September 30, 2013

accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings was as follows:

Number of > 5%
Non-Affiliated

Account Holders

Percentage of
Non-Affiliated
Ownership

Percentage of
Affiliated Ownership
(Note 5)

Total
Percentage of
Ownership

17.28

0.06

17.34

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:


	Year Ended September 30, 2013					Year Ended September 30, 2012**
	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	65,384,516		$	824,657,215		92,989,022		$	1,143,550,708
Issued in connection with the reinvestment of distributions	11,205,711			140,613,943		11,834,759			143,943,676
Redeemed	(109,489,794	)		(1,363,484,888	)	(96,077,704	)		(1,182,083,038	)

Net change	(32,899,567	)	$	(398,213,730	)	8,746,077		$	105,411,346

Class B
Issued from the sale of shares	19,932		$	250,047		63,429		$	771,205
Issued in connection with the reinvestment of distributions	26,217			327,849		33,273			402,324
Redeemed	(375,212	)		(4,657,988	)	(234,825	)		(2,875,706	)

Net change	(329,063	)	$	(4,080,092	)	(138,123	)	$	(1,702,177	)

Class C
Issued from the sale of shares	16,055,822		$	201,222,605		30,359,028		$	369,971,044
Issued in connection with the reinvestment of distributions	5,110,753			63,653,947		5,302,985			63,969,788
Redeemed	(57,170,562	)		(705,694,940	)	(29,338,640	)		(358,469,801	)

Net change	(36,003,987	)	$	(440,818,388	)	6,323,373		$	75,471,031

Class N*
Issued from the sale of shares	3,814		$	46,815		—		$	—
Issued in connection with the reinvestment of distributions	28			330		—			—
Redeemed	(497	)		(6,093	)	—			—

Net change	3,345		$	41,052		—		$	—

51 |

Notes to Financial Statements (continued)

September 30, 2013

10. Capital Shares (continued).


	Year Ended September 30, 2013					Year Ended September 30, 2012**
	Shares			Amount		Shares			Amount
Class Y
Issued from the sale of shares	159,420,265		$	2,006,761,237		213,919,333		$	2,639,613,755
Issued in connection with the reinvestment of distributions	27,504,363			345,126,073		23,000,671			280,416,666
Redeemed	(219,327,621	)		(2,733,370,926	)	(105,994,304	)		(1,305,561,746	)

Net change	(32,402,993	)	$	(381,483,616	)	130,925,700		$	1,614,468,675

Admin Class
Issued from the sale of shares	1,283,717		$	16,138,159		986,859		$	12,078,567
Issued in connection with the reinvestment of distributions	39,685			496,698		25,251			307,704
Redeemed	(809,135	)		(10,060,506	)	(251,880	)		(3,084,159	)

Net change	514,267		$	6,574,351		760,230		$	9,302,112

Class J
Issued from the sale of shares	—		$	—		—		$	—
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	—			—		(8,514,614	)		(102,418,852	)

Net change	—		$	—		(8,514,614	)	$	(102,418,852	)

Increase (decrease) from capital share transactions	(101,117,998	)	$	(1,217,980,423	)	138,102,643		$	1,700,532,135

* From

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

** For

the period from October 1, 2011 through January 11, 2012 for Class J shares.

| 52

Report of Independent Registered Public Accounting Firm

To the Trustees of Loomis Sayles Funds II and Shareholders of Loomis Sayles Investment Grade Bond Fund:

In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Investment Grade Bond Fund, a series of Loomis Sayles Funds II (the “Fund”), at September 30, 2013, and the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2013

53 |

2013 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2013, 1.16% of dividends distributed by Investment Grade Bond Fund qualify for the dividends received deduction for corporate shareholders.

Capital Gains Distributions. Pursuant to Internal Revenue Section 852(b), the Investment Grade Bond Fund designated $102,456,982 as capital gains distributions for the fiscal year ended September 30, 2013, unless subsequently determined to be different.

Qualified Dividend Income. For the fiscal year ended September 30, 2013, the Investment Grade Bond Fund will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Fund pays a distribution during calendar year 2013 complete information will be reported in conjunction with Form 1099-DIV.

| 54

Trustee and Officer Information

The tables below provide certain information regarding the trustees and officers of Loomis Sayles Funds II (the “Trust”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Fund’s Statement of Additional Information includes additional information about the trustees of the Trust and is available by calling Natixis Funds at 800-225-5478.


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES

Charles D. Baker (1956)	Trustee From 2005 to 2009 and since 2011 Contract Review and Governance Committee Member	Executive in Residence at General Catalyst Partners (venture capital and growth equity firm); formerly, President and Chief Executive Officer, Harvard Pilgrim Health Care (health care organization)	42 Director, Athenahealth, Inc. (software company)	Significant experience on the Board; executive experience (including president and chief executive officer of a health care organization and executive officer of a venture capital and growth equity firm)

Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Contract Review and Governance Committee	Chairman (formerly, President and Chief Executive Officer) of Cain Brothers & Company, Incorporated (investment banking)	42 Director, Sheridan Healthcare Inc. (physician practice management)	Significant experience on the Board and on the board of other business organizations (including at a health care organization); experience in the financial industry (including roles as chairman and former chief executive officer of an investment banking firm)

55 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Kenneth A. Drucker (1945)	Trustee Since 2008 Chairman of the Audit Committee	Retired	42 Formerly, Director, M Fund, Inc. (investment company); Director, Gateway Trust (investment company)	Significant experience on the Board and on the board of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)

Edmond J. English (1953)	Trustee Since 2013 Contract Review and Governance Committee Member	Chief Executive Officer of Bob’s Discount Furniture (retail)	42 Formerly, Director, BJ’s Wholesale Club (retail); formerly, Director, Citizens Financial Group (bank)	Significant experience on the board of other business organizations (including at a retail company and a bank); executive experience (including at a retail company)

| 56

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Wendell J. Knox (1948)	Trustee Since 2009 Audit Committee Member	Director (formerly, President and Chief Executive Officer) of Abt Associates Inc. (research and consulting)	42 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the board of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

Martin T. Meehan (1956)	Trustee Since 2012 Contract Review and Governance Committee Member	Chancellor and faculty member, University of Massachusetts Lowell	42 None	Experience on the Board and on the board of other business organizations; experience as Chancellor of the University of Massachusetts Lowell; government experience (including as a member of the U.S. House of Representatives); academic experience

57 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee Since 2003 Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting)	42 Director, Verizon Communications (telecommunications company); Director, AES Corporation (international power company); formerly, Director, Rohm and Haas Company (specialty chemicals)	Significant experience on the Board and on the board of other business organizations (including at a telecommunications company, an international power company and a specialty chemicals corporation); executive experience (including at a management consulting company)

Erik R. Sirri (1958)	Trustee Since 2009 Audit Committee Member	Professor of Finance at Babson College; formerly, Director of the Division of Trading and Markets at the Securities and Exchange Commission	42 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist

| 58

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Peter J. Smail (1952)	Trustee Since 2009 Contract Review and Governance Committee Member	Retired; formerly, President and Chief Executive Officer of Pyramis Global Advisors (investment management)	42 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School	42 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)

INTERESTED TRUSTEES

Robert J. Blanding³ (1947) 555 California Street San Francisco, CA 94104	Trustee Since 2002 Chief Executive Officer since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	42 None	Significant experience on the Board; continuing service as President, Chairman, and Chief Executive Officer of Loomis, Sayles & Company, L.P.

59 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INTERESTED TRUSTEES continued

David L. Giunta⁴ (1965)	Trustee Since 2011 President since 2008	President and Chief Executive Officer, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.	42 None	Experience on the Board; continuing experience as President and Chief Executive Officer of NGAM Advisors, L.P.

John T. Hailer⁵ (1960)	Trustee Since 2003	President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.	42 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

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

³	Mr. Blanding is deemed an “interested person” of the Trust because he holds the following positions with an affiliated person of the Trust: President, Chairman, Director and Chief Executive Officer of Loomis, Sayles & Company, L.P. and Director of Loomis Sayles Investment Asia Pte., Ltd.

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

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

| 60

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust	Term of Office¹ and Length of Time Served	Principal Occupation(s) During Past 5 Years²

OFFICERS OF THE TRUST

Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

Daniel J. Fuss (1933) One Financial Center Boston, MA 02111	Executive Vice President	Since June 2003	Vice Chairman and Director, Loomis, Sayles & Company, L.P.

Russell L. Kane (1969)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Chief Compliance Officer since May 2006; Assistant Secretary since June 2004; and Anti-Money Laundering Officer since April 2007	Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, NGAM Advisors, L.P. and NGAM Distribution, L.P.

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

61 |

ANNUAL REPORT

September 30, 2013

LOGO

Loomis Sayles Strategic Income Fund

TABLE OF CONTENTS

Portfolio Review page 1

Portfolio of Investments page 12

Financial Statements page 35

Notes to Financial Statements page 41

LOOMIS SAYLES STRATEGIC INCOME FUND


Managers	Symbols
Matthew J. Eagan, CFA	Class A	NEFZX
Daniel J. Fuss, CFA, CIC	Class B	NEZBX
Elaine M. Stokes	Class C	NECZX
Loomis, Sayles & Company, L.P.	Class N	NEZNX
	Class Y	NEZYX
	Admin Class	NEZAX

Objective

High current income with a secondary objective of capital growth.

Strategy

Under normal market conditions, the Fund will invest substantially all of its assets in income producing securities (including below investment-grade securities, or “junk bonds”) with a focus on U.S. corporate bonds, convertible securities, foreign debt instruments, including those in emerging markets and related foreign currency transactions, and U.S. government securities. The Fund may invest up to 35% of its assets in preferred stocks and dividend-paying common stocks.

Market Conditions

Following an event-driven fourth quarter of 2012, investor optimism surged in early 2013 following a last-minute deal that prevented the U.S. from plummeting over the “fiscal cliff” of scheduled tax increases and spending cuts. However, the credit markets struggled for much of the second quarter, as speculation concerning the potential winding down of the Federal Reserve’s (the Fed’s) asset purchase program prompted fears that interest rates would rise sooner rather than later. These fears receded in September, when the Fed surprised the markets by delaying any action to begin tapering its bond purchases.

Macroeconomic indicators, led by domestic housing market data, were largely positive during the period, underscoring the potential for a strengthening U.S. recovery. Pressure on European sovereign bonds mounted as instability in Italy, in the wake of a contentious parliamentary election, was quickly followed by the early-2013 banking crisis in Cyprus. These fears faded over the course of the summer, and the euro zone emerged from recession.

Performance Results

For the 12 months ended September 30, 2013, Class A shares of Loomis Sayles Strategic Income Fund returned 9.43%. The fund outperformed its benchmark, the Barclays U.S. Aggregate Bond Index, which returned -1.68%.

1 |

Explanation of Fund Performance

Investment grade corporate holdings and out-of-benchmark allocations, including positions in high-yield bonds, convertible securities and specific non-U.S.-dollar-denominated credits, primarily accounted for the fund’s outperformance relative to its benchmark.

Allocations to common stocks bolstered return, as the equity markets generally trended upward during the period. In addition, strong performance from individual convertible securities led to positive returns for the sector. Significant stock market gains during much of the 12-month period also buoyed equity-sensitive issues. Investment grade and high yield corporate securities generated positive results and attractive relative returns, as resurgent investor optimism and high levels of new issuance bolstered both segments of the credit market at various points during the period. Higher-beta (higher risk/reward potential) industrial names generally led the way within the high-yield and investment-grade segments, while financial issues also aided results. Non-U.S.-dollar-denominated holdings benefited from intermittent bouts of optimism and contributed to return. Issues denominated in the euro, Swiss franc, New Zealand dollar and Icelandic krona were the largest contributors within the allocation.

Emerging market debt rallied during the first six months of the period but sold off sharply in the latter half, as fresh concerns about China’s slowing economic growth dampened prospects for the sector. The downturn weighed heavily on the fund’s supranational holdings. Similarly, certain U.S. dollar-deonominated holdings detracted from performance in the second half of the period. Specifically, the Brazilian real, Canadian dollar and Indonesian rupiah suffered the brunt of fiscal reform and diminished growth expectations in China.

Outlook

Based on our long-term views, we have not made material asset allocation changes. Our strategy centers on research-based security selection, with a focus on sectors that can be

| 2

LOOMIS SAYLES STRATEGIC INCOME FUND

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

September 30, 2003 through September 30, 2013

LOGO

3 |

Average Annual Total Returns — September 30, 2013⁵



	1 Year			5 Years			10 Years			Since Class N Inception

Class A (Inception 5/1/95)
NAV		9.43	%		12.30	%		8.79	%		—	%
With 4.50% Maximum Sales Charge		4.51			11.28			8.29			—

Class B (Inception 5/1/95)
NAV		8.58			11.47			7.97			—
With CDSC²		3.58			11.21			7.97			—

Class C (Inception 5/1/95)
NAV		8.61			11.48			7.98			—
With CDSC²		7.61			11.48			7.98			—

Class N (Inception 2/1/13)
NAV		—			—			—			4.01

Class Y (Inception 12/1/99)
NAV		9.72			12.60			9.07			—

Admin Class (Inception 2/1/10)¹
NAV		9.12			12.01			8.47			—

Comparative Performance
Barclays U.S. Aggregate Bond Index³		-1.68			5.41			4.59			-1.12
Barclays U.S. Universal Bond Index⁴		-1.00			5.93			4.91			-0.97

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.

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.

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

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

| 4

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 this fund is actively managed, there is no assurance that it will continue to invest in the securities or industries mentioned.

ADDITIONAL INDEX INFORMATION

PROXY VOTING INFORMATION

QUARTERLY PORTFOLIO SCHEDULES

5 |

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 following examples are intended to help you understand the ongoing costs of investing in the fund and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table for each class shows the actual amount of fund expenses you would have paid on a $1,000 investment in the fund from April 1, 2013 through September 30, 2013. 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 =8.60) and multiply the result by the number in Expenses Paid During Period column as shown below for your class.

| 6


LOOMIS SAYLES STRATEGIC INCOME FUND	BEGINNING ACCOUNT VALUE 4/1/2013		ENDING ACCOUNT VALUE 9/30/2013		EXPENSES PAID DURING PERIOD* 4/1/2013 – 9/30/2013
Class A
Actual		$1,000.00		$1,029.40		$4.83
Hypothetical (5% return before expenses)		$1,000.00		$1,020.31		$4.81
Class B
Actual		$1,000.00		$1,025.80		$8.58
Hypothetical (5% return before expenses)		$1,000.00		$1,016.60		$8.54
Class C
Actual		$1,000.00		$1,025.90		$8.63
Hypothetical (5% return before expenses)		$1,000.00		$1,016.55		$8.59
Class N
Actual		$1,000.00		$1,031.00		$3.21
Hypothetical (5% return before expenses)		$1,000.00		$1,021.91		$3.19
Class Y
Actual		$1,000.00		$1,030.70		$3.56
Hypothetical (5% return before expenses)		$1,000.00		$1,021.56		$3.55
Admin Class
Actual		$1,000.00		$1,028.20		$6.10
Hypothetical (5% return before expenses)		$1,000.00		$1,019.05		$6.07

Expenses are equal to the Fund’s annualized expense ratio: 0.95%, 1.69%, 1.70%, 0.63%, 0.70% and 1.20% for Class A, B, C, N, Y and Admin Class respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

7 |

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENT

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

| 8

party performance rankings for various periods comparing the Fund against similarly categorized funds. The portfolio management team for the Fund or other representatives of the Adviser make periodic presentations to the Contract Review and Governance Committee and/or the full Board, and if the Fund is identified as presenting possible performance concerns it may be subject to more frequent board presentations and reviews. In addition, each quarter the Trustees are provided with detailed statistical information about the Fund’s portfolio. The Trustees also receive periodic updates between meetings.

The Board most recently approved the continuation of the Agreement at their meeting held in June 2013. The Agreement was continued for a one-year period for the Fund. In considering whether to approve the continuation of the Agreement, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreement included, but were not limited to, the factors listed below.

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

Investment performance of the Fund and the Adviser. As noted above, the Trustees received information about the performance of the Fund over various time periods, including information that compared the performance of the Fund to the performance of a peer group and category of funds and the Fund’s performance benchmarks. In addition, the Trustees also reviewed data prepared by an independent third party that analyzed the performance of the Fund using a variety of performance metrics, including metrics that also measured the performance of the Fund on a risk adjusted basis. The Board concluded that the Fund’s performance or other relevant factors supported the renewal of the Agreement.

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreement, that the performance of the

9 |

Fund and the Adviser and/or other relevant factors supported the renewal of the Agreement.

The costs of the services to be provided and profits to be realized by the Adviser and its affiliates from their respective relationships with the Fund. The Trustees considered the fees charged to the Fund for advisory services as well as the total expense levels of the Fund. This information included comparisons (provided both by management and also by an independent third party) of the Fund’s advisory fees and total expense levels to those of its peer group and information about the advisory fees charged by the Adviser to comparable accounts (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage and the greater regulatory costs associated with the management of mutual fund assets. In evaluating the Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of the Fund, as well as the need for the Adviser to offer competitive compensation and to expend additional resources as the Fund grows in size. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps for various funds in the fund family. They noted that, as of December 31, 2012, the Fund has an expense cap in place, and the Trustees considered that the current expenses are below the cap. The Trustees noted that the Fund had an advisory fee rate that was above the median of a peer group of funds. The Trustees considered the factors which management believed justified such relatively higher fees, including that: (1) the Fund’s advisory fee rate was not significantly above its peer group median; (2) the Fund had not yet reached asset levels at which the advisory fee breakpoints would have an impact on fees; and (3) the Fund’s net expense ratio was below the median of a peer group of funds.

The Trustees also considered the compensation directly or indirectly received by the Adviser and its affiliates from their relationships with the Fund. The Trustees reviewed information provided by management as to the profitability of the Adviser’s and its affiliates’ relationships with the Fund, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser compensation or profitability were issues, the performance of the Fund, the expense levels of the Fund, whether the Adviser had implemented breakpoints and/or expense caps with respect to the Fund and the overall profit margin of the Adviser compared to other investment managers.

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

| 10

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Fund through breakpoints in its investment advisory fees or other means, such as expense waivers or caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense waivers or caps for certain funds. Management explained that a number of factors are taken into account in considering the possible implementation of breakpoints or an expense cap for a fund, including, among other things, factors such as a fund’s assets, the projected growth of a fund, projected profitability and a fund’s fees and performance. With respect to economies of scale, the Trustees noted the Fund is subject to breakpoints in its advisory fees. The Trustees further noted that the Fund was subject to an expense cap or waiver. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Fund, as discussed above.

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

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

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

Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that the existing Agreement should be continued through June 30, 2014.

11 |

Portfolio of Investments — as of September 30, 2013

Loomis Sayles Strategic Income Fund


Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 68.1% of Net Assets
	Non-Convertible Bonds — 58.8%
		ABS Car Loan — 0.0%
$	4,093,750	Avis Budget Rental Car Funding AESOP LLC, Series 2010-5A, Class B, 5.110%, 3/20/2017, 144A	$	4,405,788

		ABS Home Equity — 0.0%
	3,841,885	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR4, Class 2A2, 2.719%, 4/25/2035(b)		3,861,805

		Aerospace & Defense — 0.4%
	620,000	Bombardier, Inc., 7.350%, 12/22/2026, 144A, (CAD)		638,882
	11,800,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		11,741,000
	2,425,000	Ducommun, Inc., 9.750%, 7/15/2018		2,691,750
	8,236,000	Meccanica Holdings USA, Inc., 6.250%, 7/15/2019, 144A		8,483,080
	8,636,000	Meccanica Holdings USA, Inc., 6.250%, 1/15/2040, 144A		7,211,060
	20,755,000	Meccanica Holdings USA, Inc., 7.375%, 7/15/2039, 144A		19,087,606
	5,310,000	Textron Financial Corp., (fixed rate to 2/15/2017, variable rate thereafter), 6.000%, 2/15/2067, 144A		4,692,712

				54,546,090

		Airlines — 2.3%
	13,620,000	Air Canada, 7.625%, 10/01/2019, 144A, (CAD)		13,255,716
	5,215,000	Air Canada Pass Through Trust, Series 2013-1, Class B, 5.375%, 11/15/2022, 144A		5,032,475
	14,600,000	American Airlines Pass Through Trust, Series 2013-1, Class A, 4.000%, 1/15/2027, 144A		13,687,500
	5,400,000	American Airlines Pass Through Trust, Series 2013-1, Class B, 5.625%, 1/15/2021, 144A		5,197,500
	3,280,000	Continental Airlines Pass Through Certificates, Series 2012-2, Class B, 5.500%, 4/29/2022		3,292,300
	21,015,000	Continental Airlines Pass Through Certificates, Series 2012-3, Class C, 6.125%, 4/29/2018		21,382,763
	4,275	Continental Airlines Pass Through Trust, Series 1996-1, Class A, 6.940%, 4/15/2015(c)(d)		4,275
	643,667	Continental Airlines Pass Through Trust, Series 1997-1, Class A, 7.461%, 10/01/2016		644,440
	592,492	Continental Airlines Pass Through Trust, Series 1997-4, Class B, 6.900%, 7/02/2018		613,229
	2,270,517	Continental Airlines Pass Through Trust, Series 1999-1, Class B, 6.795%, 2/02/2020		2,358,499
	1,240,443	Continental Airlines Pass Through Trust, Series 1999-2, Class B, 7.566%, 9/15/2021		1,303,705
	1,233,941	Continental Airlines Pass Through Trust, Series 2000-1, Class A-1, 8.048%, 5/01/2022		1,400,524
	1,437,966	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022		1,614,117
	2,033,641	Continental Airlines Pass Through Trust, Series 2000-2, Class B, 8.307%, 10/02/2019		2,097,192

See accompanying notes to financial statements.

| 12

Portfolio of Investments — as of September 30, 2013

Loomis Sayles Strategic Income Fund — (continued)


Principal Amount (‡)		Description	Value (†)
		Airlines — continued
$	1,844,668	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022	$	1,973,794
	1,063,631	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		1,130,108
	10,452,388	Continental Airlines Pass Through Trust, Series 2007-1, Class A, 5.983%, 10/19/2023		11,184,055
	18,348,237	Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.903%, 10/19/2023		18,783,090
	16,056,235	Continental Airlines Pass Through Trust, Series 2009-1, 9.000%, 1/08/2018		18,344,248
	14,834,915	Continental Airlines Pass Through Trust, Series 2009-2, Class A, 7.250%, 5/10/2021		16,763,454
	3,980,000	Continental Airlines Pass Through Trust, Series 2012-1, Class B, 6.250%, 10/11/2021		4,109,350
	1,219,022	Delta Air Lines Pass Through Trust, Series 2007-1, Class A, 6.821%, 2/10/2024		1,356,163
	5,862,372	Delta Air Lines Pass Through Trust, Series 2007-1, Class B, 8.021%, 2/10/2024		6,360,674
	17,763,723	Delta Air Lines Pass Through Trust, Series 2007-1, Class C, 8.954%, 8/10/2014		18,030,179
	1,697,809	Northwest Airlines, Inc., Series 2002-1, Class G2, (MBIA insured), 6.264%, 5/20/2023		1,751,121
	16,687,590	UAL Pass Through Trust, Series 2007-1, Class A, 6.636%, 1/02/2024		17,355,093
	768,064	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		860,693
	14,522,729	US Airways Pass Through Trust, Series 2010-1B, Class B, 8.500%, 10/22/2018		15,248,866
	33,943,761	US Airways Pass Through Trust, Series 2010-1C, Class C, 11.000%, 10/22/2014, 144A		35,725,808
	47,534,220	US Airways Pass Through Trust, Series 2011-1B, Class B, 9.750%, 4/22/2020		53,475,997
	14,822,754	US Airways Pass Through Trust, Series 2011-1C, Class C, 10.875%, 10/22/2014		15,638,006
	14,069,606	US Airways Pass Through Trust, Series 2012-1A, Class A, 5.900%, 4/01/2026		14,702,738
	7,274,752	US Airways Pass Through Trust, Series 2012-1B, Class B, 8.000%, 4/01/2021		7,929,479
	5,675,691	US Airways Pass Through Trust, Series 2012-1C, Class C, 9.125%, 10/01/2015		5,845,962
	7,200,000	US Airways Pass Through Trust, Series 2013-1, Class B, 5.375%, 5/15/2023		6,840,000

				345,293,113

		Automotive — 0.8%
	630,000	Chrysler Group LLC/CG Co-Issuer, Inc., 8.250%, 6/15/2021		705,600
	19,011,000	Ford Motor Co., 6.375%, 2/01/2029		20,733,682
	1,220,000	Ford Motor Co., 6.625%, 2/15/2028		1,318,683

See accompanying notes to financial statements.

13 |

Portfolio of Investments — as of September 30, 2013

Loomis Sayles Strategic Income Fund — (continued)


Principal Amount (‡)		Description	Value (†)
		Automotive — continued
$	74,829,000	Ford Motor Co., 6.625%, 10/01/2028	$	84,438,989
	2,365,000	Ford Motor Co., 7.125%, 11/15/2025		2,754,669
	1,345,000	Ford Motor Co., 7.500%, 8/01/2026		1,622,350
	6,000,000	Goodyear Tire & Rubber Co. (The), 7.000%, 5/15/2022		6,240,000
	4,977,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		4,927,230

				122,741,203

		Banking — 7.4%
	1,175,000	AgriBank FCB, 9.125%, 7/15/2019, 144A		1,526,124
	30,607,000	Ally Financial, Inc., 8.000%, 12/31/2018		34,432,875
	29,332,000	Ally Financial, Inc., 8.000%, 11/01/2031		32,998,500
	20,565,000	Associates Corp. of North America, 6.950%, 11/01/2018		24,428,320
	63,900,000	Banco Santander Brasil S.A./Cayman Islands, 8.000%, 3/18/2016, 144A, (BRL)		26,669,449
	900,000	Bank of America Corp., 5.490%, 3/15/2019		982,102
	265,000	Bank of America Corp., MTN, 5.000%, 5/13/2021		284,618
	1,500,000	Bank of America Corp., Series K, (fixed rate to 1/30/2018, variable rate thereafter), 8.000%(l)		1,631,250
	1,130,000	Barclays Bank PLC, (fixed rate to 12/15/2017, variable rate thereafter), 6.000%, (GBP)(l)		1,641,849
	39,890,000,000	Barclays Bank PLC, EMTN, 3.680%, 8/20/2015, (KRW)		38,109,997
	7,320,000	Barclays Bank PLC, EMTN, (fixed rate to 3/15/2020, variable rate thereafter), 4.750%, (EUR)(l)		7,823,264
	57,792,000,000	Barclays Financial LLC, EMTN, 3.500%, 11/29/2016, (KRW)		54,896,955
	1,600,000	BNP Paribas S.A., (fixed rate to 4/13/2017, variable rate thereafter), 5.019%, (EUR)(l)		2,199,735
	5,331,000	BNP Paribas S.A., (fixed rate to 6/29/2015, variable rate thereafter), 5.186%, 144A(l)		5,384,843
	4,000,000	Citigroup, Inc., 5.365%, 3/06/2036, (CAD)(d)		3,570,856
	24,610,000	Citigroup, Inc., 5.875%, 2/22/2033		24,504,128
	8,999,000	Citigroup, Inc., 6.000%, 10/31/2033		9,069,831
	6,060,000	Citigroup, Inc., 6.125%, 8/25/2036		6,099,045
	22,091,000	Citigroup, Inc., 6.250%, 6/29/2017, (NZD)		18,924,446
	3,350,000	Citigroup, Inc., EMTN, 1.495%, 11/30/2017, (EUR)(b)		4,400,620
	3,035,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Utrecht, 3.375%, 1/19/2017		3,229,349
	17,730,000	Cooperatieve Centrale Raiffeisen-Boerenleenbank BA/Utrecht, 3.875%, 2/08/2022		17,751,613
	400,000	Goldman Sachs Group, Inc. (The), 6.450%, 5/01/2036		406,090
	34,060,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		35,546,242
	11,000,000	HBOS Capital Funding LP, (fixed rate to 6/30/2014, variable rate thereafter), 6.071%, 144A(l)		10,766,250
	32,705,000	HBOS PLC, 6.000%, 11/01/2033, 144A		30,778,675
	50,604,000	HBOS PLC, GMTN, 6.750%, 5/21/2018, 144A		56,230,861
	9,090,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		8,408,250
	45,620,000	JPMorgan Chase & Co., 4.250%, 11/02/2018, (NZD)		35,820,624
	260,000,000,000	JPMorgan Chase & Co., EMTN, 7.070%, 3/22/2014, (IDR)		21,473,575

See accompanying notes to financial statements.

| 14

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Banking — continued
	227,000,000,000	JPMorgan Chase Bank NA, 7.700%, 6/01/2016, 144A, (IDR)	$	18,850,017
	27,555,000	Lloyds Bank PLC, MTN, 6.500%, 9/14/2020, 144A		30,418,212
	18,500,000	Lloyds Banking Group PLC, (fixed rate to 10/01/2015, variable rate thereafter), 5.920%, 144A(l)		16,650,000
	3,010,000	Merrill Lynch & Co., Inc., 5.700%, 5/02/2017		3,322,685
	1,900,000	Merrill Lynch & Co., Inc., 6.050%, 5/16/2016		2,092,616
	6,700,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		6,900,538
	3,450,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)		4,994,047
	1,235,000	Merrill Lynch & Co., Inc., Series C, GMTN, 6.400%, 8/28/2017		1,420,176
	800,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		836,462
	35,325,000	Morgan Stanley, 4.750%, 11/16/2018, (AUD)		32,790,981
	55,795,000	Morgan Stanley, 4.875%, 11/01/2022		55,824,348
	74,310,000	Morgan Stanley, 7.600%, 8/08/2017, (NZD)		65,471,523
	100,265,000	Morgan Stanley, 8.000%, 5/09/2017, (AUD)		103,392,698
	950,000	Morgan Stanley, EMTN, 5.750%, 2/14/2017, (GBP)		1,702,010
	1,000,000	Morgan Stanley, GMTN, 4.500%, 2/23/2016, (EUR)		1,446,944
	79,700,000	Morgan Stanley, GMTN, 7.625%, 3/03/2016, (AUD)		79,731,823
	17,175,000	Morgan Stanley, MTN, 4.100%, 5/22/2023		16,019,432
	10,000,000	Morgan Stanley, MTN, 6.250%, 8/09/2026		11,186,710
	6,600,000	Morgan Stanley, Series F, GMTN, 5.625%, 9/23/2019		7,365,098
	7,900,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018		9,171,560
	12,100,000	Morgan Stanley, Series F, MTN, 0.716%, 10/18/2016(b)		11,901,826
	5,210,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		5,894,479
	2,850,000	RBS Capital Trust A, 2.321%, (EUR)(b)(l)		3,200,168
	1,905,000	RBS Capital Trust C, (fixed rate to 1/12/2016, variable rate thereafter), 4.243%, (EUR)(l)		2,106,845
	7,925,000	RBS Capital Trust I, 2.113%(b)(l)		6,914,563
	4,050,000	RBS Capital Trust II, (fixed rate to 1/03/2034, variable rate thereafter), 6.425%(l)		3,665,250
	2,085,000	RBS Capital Trust III, (fixed rate to 9/30/2014, variable rate thereafter), 5.512%(l)		1,912,988
	930,000	Royal Bank of Scotland Group PLC, 5.250%, (EUR)(l)		959,340
	15,100,000	Royal Bank of Scotland Group PLC, 5.500%, (EUR)(l)		15,940,001
	17,700,000	Royal Bank of Scotland Group PLC, 6.125%, 12/15/2022		17,831,334
	9,990,000	Royal Bank of Scotland Group PLC, (fixed rate to 9/29/2017, variable rate thereafter), 7.640%(l)		9,490,500
	850,000	Royal Bank of Scotland PLC (The), EMTN, 4.350%, 1/23/2017, (EUR)		1,165,734
	7,750,000	Royal Bank of Scotland PLC (The), EMTN, 6.934%, 4/09/2018, (EUR)		11,491,804
	2,150,000	Royal Bank of Scotland PLC (The), EMTN, (fixed rate to 9/22/2016, variable rate thereafter), 4.625%, 9/22/2021, (EUR)		2,763,197
	700,000	Santander Financial Issuances Ltd., 7.250%, 11/01/2015		747,506
	1,300,000	Santander International Debt SAU, EMTN, 4.000%, 3/27/2017, (EUR)		1,851,002
	1,800,000	Santander Issuances SAU, 5.911%, 6/20/2016, 144A		1,898,231
	1,500,000	Santander Issuances SAU, (fixed rate to 8/11/2014, variable rate thereafter), 6.500%, 8/11/2019, 144A		1,523,036

See accompanying notes to financial statements.

15 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Banking — continued
	4,140,000	SG Capital Trust III, (fixed rate to 11/10/2013, variable rate thereafter), 5.419%, (EUR)(l)	$	5,617,603
	18,054,000	Societe Generale S.A., (fixed rate to 4/05/2017, variable rate thereafter), 5.922%, 144A(l)		18,415,080

				1,114,868,703

		Brokerage — 0.8%
	2,655,000	Cantor Fitzgerald LP, 6.375%, 6/26/2015, 144A		2,747,925
	43,025,000	Jefferies Group LLC, 5.125%, 1/20/2023		43,362,875
	20,010,000	Jefferies Group LLC, 6.250%, 1/15/2036		19,201,456
	15,215,000	Jefferies Group LLC, 6.450%, 6/08/2027		15,519,300
	39,040,000	Jefferies Group LLC, 6.875%, 4/15/2021		43,301,997

				124,133,553

		Building Materials — 0.9%
	6,995,000	Masco Corp., 6.500%, 8/15/2032		6,942,538
	5,510,000	Masco Corp., 7.125%, 3/15/2020		6,212,525
	2,630,000	Masco Corp., 7.750%, 8/01/2029		2,904,853
	32,100,000	Odebrecht Finance Ltd., 8.250%, 4/25/2018, 144A, (BRL)		12,017,766
	35,980,000	Owens Corning, Inc., 7.000%, 12/01/2036		39,464,303
	46,412,000	USG Corp., 6.300%, 11/15/2016		49,080,690
	14,155,000	USG Corp., 9.750%, 1/15/2018		16,384,413

				133,007,088

		Chemicals — 0.4%
	20,070,000	Hercules, Inc., 6.500%, 6/30/2029		17,862,300
	5,200,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 8.875%, 2/01/2018		5,382,000
	4,555,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 9.000%, 11/15/2020		4,452,512
	23,584,000	Momentive Specialty Chemicals, Inc., 7.875%, 2/15/2023(d)		19,338,880
	7,789,000	Momentive Specialty Chemicals, Inc., 8.375%, 4/15/2016(d)		7,010,100
	8,757,000	Momentive Specialty Chemicals, Inc., 9.200%, 3/15/2021(d)		7,443,450

				61,489,242

		Commercial Mortgage-Backed Securities — 0.2%
	35,060,000	GS Mortgage Securities Corp. II, Series 2007-GG10, Class AM, 5.993%, 8/10/2045(b)		34,273,219

		Construction Machinery — 0.1%
	1,425,000	Joy Global, Inc., 6.625%, 11/15/2036		1,516,588
	11,655,000	United Rentals North America, Inc., 7.625%, 4/15/2022		12,674,812
	525,000	United Rentals North America, Inc., 8.375%, 9/15/2020		581,438

				14,772,838

		Consumer Cyclical Services — 0.0%
	670,000	ServiceMaster Co. (The), 7.100%, 3/01/2018		644,875
	5,500,000	ServiceMaster Co. (The), 7.450%, 8/15/2027		4,400,000

				5,044,875

See accompanying notes to financial statements.

| 16

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Consumer Products — 0.0%
$	1,335,000	Visant Corp., 10.000%, 10/01/2017	$	1,241,550

		Electric — 2.0%
	1,540,000	AES Corp., 4.875%, 5/15/2023		1,439,900
	756,974	AES Red Oak LLC, Series A, 8.540%, 11/30/2019		798,608
	45,322,516	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		48,083,382
	62,180,200	Bruce Mansfield Unit, 6.850%, 6/01/2034		65,831,422
	2,441,011	CE Generation LLC, 7.416%, 12/15/2018		2,407,447
	28,105,000	Edison Mission Energy, 7.625%, 5/15/2027(e)		18,619,562
	42,200,000	EDP Finance BV, 4.900%, 10/01/2019, 144A		41,672,500
	14,800,000	EDP Finance BV, 6.000%, 2/02/2018, 144A		15,318,000
	500,000	EDP Finance BV, EMTN, 4.750%, 9/26/2016, (EUR)		693,376
	100,000	EDP Finance BV, EMTN, 5.875%, 2/01/2016, (EUR)		142,387
	3,570,000	Endesa S.A./Cayman Islands, 7.875%, 2/01/2027		4,244,302
	13,642,000	Enel Finance International NV, 6.000%, 10/07/2039, 144A		12,422,542
	1,435,000	Enel Finance International NV, 6.800%, 9/15/2037, 144A		1,431,470
	2,732,000	Enel Finance International NV, EMTN, 5.750%, 9/14/2040, (GBP)		3,908,656
	108,541,101	Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 11.250% (12.250% PIK), 12/01/2018, 144A(f)		71,637,127
	5,940,000	Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc., 10.000%, 12/01/2020, 144A		6,237,000
	555,000	Enersis S.A., Cayman Islands, 7.400%, 12/01/2016		642,371
	2,755,000	PPL Energy Supply LLC, 4.600%, 12/15/2021		2,718,339

				298,248,391

		Financial Other — 0.3%
	19,005,000	Aviation Capital Group Corp., 6.750%, 4/06/2021, 144A		20,060,975
	20,000,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A		28,096,260

				48,157,235

		Food & Beverage — 0.2%
	25,280,000	Crestview DS Merger Sub II, Inc., 10.000%, 9/01/2021, 144A		26,038,400
	4,880,000	Shearer’s Foods LLC/Chip Finance Corp., 9.000%, 11/01/2019, 144A		5,099,600
	4,370,000	Viterra, Inc., 6.406%, 2/16/2021, 144A, (CAD)		4,629,345

				35,767,345

		Government Guaranteed — 0.4%
	72,695,000	Queensland Treasury Corp., 7.125%, 9/18/2017, 144A, (NZD)		66,199,296

		Government Owned – No Guarantee — 0.5%
	19,500,000	DP World Ltd., 6.850%, 7/02/2037, 144A		19,597,500
	70,300,000,000	Export-Import Bank of Korea, 6.600%, 11/04/2013, 144A, (IDR)		6,004,033
	499,300,000,000	Export-Import Bank of Korea, 8.300%, 3/15/2014, 144A, (IDR)		42,093,404

				67,694,937

		Government Sponsored — 0.1%
	1,000,000	EDP Finance BV, EMTN, 2.250%, 2/11/2021, (CHF)		943,661
	10,807,000	Eksportfinans ASA, 2.000%, 9/15/2015		10,536,825
	9,005,000	Eksportfinans ASA, 2.375%, 5/25/2016		8,712,338

				20,192,824

See accompanying notes to financial statements.

17 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Healthcare — 2.1%
$	2,795,000	HCA Holdings, Inc., 6.250%, 2/15/2021	$	2,840,419
	9,960,000	HCA, Inc., 5.875%, 3/15/2022		10,233,900
	108,560,000	HCA, Inc., 5.875%, 5/01/2023		106,660,200
	14,620,000	HCA, Inc., 7.050%, 12/01/2027		13,998,650
	20,447,000	HCA, Inc., 7.500%, 12/15/2023		20,855,940
	24,215,000	HCA, Inc., 7.500%, 11/06/2033		24,033,388
	46,148,000	HCA, Inc., 7.690%, 6/15/2025		47,244,015
	32,745,000	HCA, Inc., 8.360%, 4/15/2024		35,200,875
	15,815,000	HCA, Inc., MTN, 7.580%, 9/15/2025		16,052,225
	9,492,000	HCA, Inc., MTN, 7.750%, 7/15/2036		9,302,160
	32,559,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		27,593,752

				314,015,524

		Home Construction — 0.7%
	1,350,000	Beazer Homes USA, Inc., 7.250%, 2/01/2023		1,296,000
	11,265,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015(e)		2,703,600
	13,360,000	K. Hovnanian Enterprises, Inc., 5.000%, 11/01/2021		11,756,800
	16,075,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016		16,597,437
	6,290,000	K. Hovnanian Enterprises, Inc., 7.500%, 5/15/2016		6,620,225
	11,315,000	KB Home, 7.250%, 6/15/2018		12,177,769
	47,260,000	Pulte Group, Inc., 6.000%, 2/15/2035		40,643,600
	13,190,000	Pulte Group, Inc., 6.375%, 5/15/2033		11,772,075

				103,567,506

		Independent Energy — 0.2%
	55,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		59,400
	17,935,000	Connacher Oil and Gas Ltd., 8.500%, 8/01/2019, 144A		12,823,525
	2,990,000	Halcon Resources Corp., 9.250%, 2/15/2022, 144A		3,109,600
	12,635,000	QEP Resources, Inc., 6.875%, 3/01/2021		13,424,687
	1,975,000	Rosetta Resources, Inc., 5.625%, 5/01/2021		1,876,250
	2,780,000	SandRidge Energy, Inc., 7.500%, 2/15/2023		2,752,200

				34,045,662

		Industrial Other — 0.1%
	7,475,000	Permian Holdings, Inc., 10.500%, 1/15/2018, 144A		7,288,125
	10,000,000	Worthington Industries, Inc., 6.500%, 4/15/2020		10,759,500

				18,047,625

		Life Insurance — 1.1%
	34,562,000	American International Group, Inc., 6.250%, 3/15/2087		33,870,760
	27,655,000	American International Group, Inc., (fixed rate to 5/15/2038, variable rate thereafter), 8.175%, 5/15/2068		32,370,177
	19,625,000	American International Group, Inc., Series G, MTN, 5.850%, 1/16/2018		22,315,136
	2,855,000	American International Group, Inc., Series MPLE, 4.900%, 6/02/2014, (CAD)		2,826,590
	23,200,000	AXA S.A., (fixed rate to 12/14/2036, variable rate thereafter), 6.379%, 144A(l)		22,301,000
	1,000,000	AXA S.A., EMTN, (fixed rate to 10/16/2019, variable rate thereafter), 6.772%, (GBP)(l)		1,647,232

See accompanying notes to financial statements.

| 18

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Life Insurance — continued
	1,350,000	AXA S.A., EMTN, (fixed rate to 4/16/2020, variable rate thereafter), 5.250%, 4/16/2040, (EUR)	$	1,922,056
	15,000,000	Forethought Financial Group, Inc., 8.625%, 4/15/2021, 144A		16,622,985
	1,475,000	MetLife Capital Trust X, 9.250%, 4/08/2068, 144A		1,873,250
	8,145,000	MetLife, Inc., 10.750%, 8/01/2069		11,973,150
	8,920,000	NLV Financial Corp., 7.500%, 8/15/2033, 144A		9,037,013
	3,910,000	Penn Mutual Life Insurance Co. (The), 6.650%, 6/15/2034, 144A		4,471,280

				161,230,629

		Local Authorities — 2.0%
	86,645,000	Autonomous Community of Madrid Spain, 4.300%, 9/15/2026, 144A, (EUR)		103,399,282
	900,000	City of Madrid, Spain, 4.550%, 6/16/2036, (EUR)		897,979
	8,095,000	City of Rome, Italy, EMTN, 5.345%, 1/27/2048, (EUR)		9,856,192
	3,905,000	Manitoba (Province of), GMTN, 6.375%, 9/01/2015, (NZD)		3,390,687
	82,840,000	New South Wales Treasury Corp., 6.000%, 2/01/2018, (AUD)		84,969,800
	66,305,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		66,373,969
	26,730,000	Queensland Treasury Corp., Series 14, 5.750%, 11/21/2014, (AUD)		25,805,058

				294,692,967

		Media Cable — 0.7%
	3,315,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.750%, 1/15/2024		3,132,675
	25,270,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		26,971,594
	540,000	Time Warner Cable, Inc., 4.500%, 9/15/2042		394,828
	44,800,000	UPC Holding BV, 6.375%, 9/15/2022, 144A, (EUR)		59,698,585
	11,275,000	Videotron Ltd., 5.625%, 6/15/2025, 144A, (CAD)		10,428,431

				100,626,113

		Media Non-Cable — 1.2%
	1,035,000	Clear Channel Communications, Inc., 4.900%, 5/15/2015		970,313
	3,760,000	Clear Channel Communications, Inc., 5.500%, 9/15/2014		3,694,200
	64,250,000	Clear Channel Communications, Inc., 9.000%, 3/01/2021		62,161,875
	90,000,000	Grupo Televisa SAB, EMTN, 7.250%, 5/14/2043, (MXN)		5,801,963
	11,620,000	Intelsat Jackson Holdings S.A., 5.500%, 8/01/2023, 144A		10,864,700
	3,995,000	Intelsat Luxembourg S.A., 6.750%, 6/01/2018, 144A		4,144,812
	28,785,000	Intelsat Luxembourg S.A., 7.750%, 6/01/2021, 144A		29,792,475
	16,000,000	Intelsat Luxembourg S.A., 8.125%, 6/01/2023, 144A		16,880,000
	3,730,000	R.R. Donnelley & Sons Co., 7.000%, 2/15/2022		3,748,650
	8,335,000	R.R. Donnelley & Sons Co., 7.875%, 3/15/2021		8,939,287
	28,455,000	R.R. Donnelley & Sons Co., 8.250%, 3/15/2019		31,585,050

				178,583,325

		Metals & Mining — 0.9%
	3,949,000	Alcoa, Inc., 5.870%, 2/23/2022		3,949,426
	2,565,000	Alcoa, Inc., 5.900%, 2/01/2027		2,480,473
	1,405,000	Alcoa, Inc., 5.950%, 2/01/2037		1,247,896
	4,330,000	Alcoa, Inc., 6.750%, 1/15/2028		4,382,012
	25,271,000	ArcelorMittal, 7.250%, 3/01/2041		23,122,965
	29,695,000	Barminco Finance Pty Ltd., 9.000%, 6/01/2018, 144A		27,096,687
	7,825,000	Barrick North America Finance LLC, 5.750%, 5/01/2043		6,565,848

See accompanying notes to financial statements.

19 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Metals & Mining — continued
$	21,905,000	Essar Steel Algoma, Inc., 9.875%, 6/15/2015, 144A	$	17,195,425
	4,200,000	Rain CII Carbon LLC/CII Carbon Corp., 8.250%, 1/15/2021, 144A		4,221,000
	16,135,000	Russel Metals, Inc., 6.000%, 4/19/2022, 144A, (CAD)		15,512,188
	6,779,000	United States Steel Corp., 6.650%, 6/01/2037		5,541,833
	7,490,000	United States Steel Corp., 6.875%, 4/01/2021		7,546,175
	16,435,000	United States Steel Corp., 7.000%, 2/01/2018		17,421,100

				136,283,028

		Non-Captive Consumer — 3.1%
	22,945,000	SLM Corp., 5.500%, 1/25/2023		21,008,121
	109,950(††)	SLM Corp., 6.000%, 12/15/2043		2,263,504
	7,515,000	SLM Corp., MTN, 4.625%, 9/25/2017		7,608,937
	17,600,000	SLM Corp., MTN, 7.250%, 1/25/2022		17,908,000
	2,160,000	SLM Corp., MTN, 8.000%, 3/25/2020		2,332,800
	3,750,000	SLM Corp., Series A, MTN, 0.566%, 1/27/2014(b)		3,731,505
	14,465,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		14,238,247
	50,910,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		39,709,800
	81,320,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		91,688,300
	137,545,000	Springleaf Finance Corp., 7.750%, 10/01/2021, 144A		142,702,937
	55,015,000	Springleaf Finance Corp., 8.250%, 10/01/2023, 144A		57,215,600
	10,120,000	Springleaf Finance Corp., MTN, 5.750%, 9/15/2016		10,448,900
	800,000	Springleaf Finance Corp., Series J, MTN, 6.500%, 9/15/2017		824,000
	55,730,000	Springleaf Finance Corp., Series J, MTN, 6.900%, 12/15/2017		58,237,850

				469,918,501

		Non-Captive Diversified — 3.8%
	7,855,000	Aircastle Ltd., 7.625%, 4/15/2020		8,679,775
	57,000,000	General Electric Capital Corp., GMTN, 4.250%, 1/17/2018, (NZD)		46,186,474
	79,035,000	General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)		69,168,860
	25,320,000	General Electric Capital Corp., Series A, GMTN, 5.500%, 2/01/2017, (NZD)		21,477,925
	58,490,000	General Electric Capital Corp., Series A, GMTN, 7.625%, 12/10/2014, (NZD)		50,730,786
	15,305,000	General Electric Capital Corp., Series A, MTN, 0.568%, 5/13/2024(b)		14,300,502
	245,797,000	General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		213,054,716
	325,000	International Lease Finance Corp., 3.875%, 4/15/2018		314,031
	2,665,000	International Lease Finance Corp., 5.875%, 4/01/2019		2,774,574
	24,750,000	International Lease Finance Corp., 5.875%, 8/15/2022		24,378,750
	1,995,000	International Lease Finance Corp., 6.250%, 5/15/2019		2,094,750
	20,610,000	International Lease Finance Corp., 7.125%, 9/01/2018, 144A		23,031,675
	10,245,000	International Lease Finance Corp., 8.250%, 12/15/2020		11,679,300
	4,000,000	iStar Financial, Inc., 3.875%, 7/01/2016		4,010,000
	11,995,000	iStar Financial, Inc., 4.875%, 7/01/2018		11,635,150
	23,175,000	iStar Financial, Inc., 5.850%, 3/15/2017		24,044,063
	8,300,000	iStar Financial, Inc., 6.050%, 4/15/2015		8,652,750
	19,240,000	iStar Financial, Inc., 7.125%, 2/15/2018		20,634,900
	19,915,000	Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 7.375%, 10/01/2017		20,836,069

				577,685,050

See accompanying notes to financial statements.

| 20

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Oil Field Services — 0.3%
$	41,550,000	Edgen Murray Corp., 8.750%, 11/01/2020, 144A	$	42,173,250
	7,170,000	Pan American Energy LLC/Argentine Branch, 7.875%, 5/07/2021, 144A		7,170,000

				49,343,250

		Paper — 0.8%
	14,715,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		17,957,038
	47,875,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		60,585,764
	775,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		1,070,689
	4,865,000	Westvaco Corp., 7.950%, 2/15/2031		5,619,046
	23,365,000	Westvaco Corp., 8.200%, 1/15/2030		27,440,744
	2,840,000	Weyerhaeuser Co., 6.950%, 10/01/2027		3,278,388

				115,951,669

		Pharmaceuticals — 0.4%
	52,735,000	Valeant Pharmaceuticals International, 6.375%, 10/15/2020, 144A		54,844,400

		Pipelines — 0.8%
	750,000	El Paso Corp., GMTN, 7.800%, 8/01/2031		762,782
	8,935,000	IFM US Colonial Pipeline 2 LLC, 6.450%, 5/01/2021, 144A		9,388,585
	39,759,324	Maritimes & Northeast Pipeline LLC, 7.500%, 5/31/2014, 144A(d)		41,135,871
	69,505,000	NGPL PipeCo LLC, 7.119%, 12/15/2017, 144A		61,338,163
	3,870,000	NGPL PipeCo LLC, 7.768%, 12/15/2037, 144A		3,154,050
	3,065,000	Rockies Express Pipeline LLC, 6.875%, 4/15/2040, 144A		2,283,241
	4,168,000	Transportadora de Gas del Sur S.A., 7.875%, 5/14/2017, 144A		3,772,040

				121,834,732

		Property & Casualty Insurance — 0.4%
	14,855,000	Hanover Insurance Group, Inc. (The), 6.375%, 6/15/2021		16,277,723
	3,405,000	Hanover Insurance Group, Inc. (The), 7.500%, 3/01/2020		3,853,411
	12,510,000	MBIA Insurance Corp., 11.528%, 1/15/2033, 144A(b)(g)		8,381,700
	11,200,000	White Mountains Re Group Ltd., 6.375%, 3/20/2017, 144A		12,245,632
	3,000,000	White Mountains Re Group Ltd., (fixed rate to 6/30/2017, variable rate thereafter), 7.506%, 144A(l)		3,083,658
	1,425,000	XL Group PLC, 6.375%, 11/15/2024		1,634,115
	17,870,000	XL Group PLC, (fixed rate to 4/15/2017, variable rate thereafter), 6.500%(l)		17,110,525

				62,586,764

		Railroads — 0.6%
	90,000,000	Hellenic Railways Organization S.A., EMTN, 0.560%, 5/24/2016, (EUR)(b)(d)		91,317,406
	1,153,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(d)		956,990

				92,274,396

		Retailers — 0.7%
	3,325,000	Dillard’s, Inc., 7.000%, 12/01/2028		3,358,250
	4,187,000	Dillard’s, Inc., 7.130%, 8/01/2018		4,699,908
	1,500,000	Dillard’s, Inc., 7.750%, 7/15/2026		1,627,500
	425,000	Dillard’s, Inc., 7.875%, 1/01/2023		471,750
	10,270,000	Foot Locker, Inc., 8.500%, 1/15/2022(c)		11,276,382
	2,440,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		1,915,400

See accompanying notes to financial statements.

21 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Retailers — continued
$	29,129,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036	$	20,317,477
	2,800,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		1,876,000
	12,275,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		13,831,409
	6,365,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		6,489,232
	37,646,000	Toys R Us, Inc., 7.375%, 10/15/2018		32,469,675

				98,332,983

		Sovereigns — 1.3%
	64,132,000,000	Indonesia Treasury Bond, Series FR43, 10.250%, 7/15/2022, (IDR)		6,069,474
	10,000,000,000	Indonesia Treasury Bond, Series FR47, 10.000%, 2/15/2028, (IDR)		936,978
	162,850,000	Republic of Brazil, 8.500%, 1/05/2024, (BRL)		66,387,662
	55,925,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		25,170,413
	49,120,000	Republic of Brazil, 12.500%, 1/05/2016, (BRL)		23,825,294
	18,400,000	Republic of Croatia, 6.750%, 11/05/2019, 144A		19,619,000
	5,226,139,000	Republic of Iceland, 6.000%, 10/13/2016, (ISK)		30,349,853
	1,605,660,000	Republic of Iceland, 7.250%, 10/26/2022, (ISK)		9,468,012
	3,112,923,000	Republic of Iceland, 8.750%, 2/26/2019, (ISK)		19,740,106

				201,566,792

		Supermarkets — 1.0%
	5,871,000	American Stores Co., 7.900%, 5/01/2017		6,516,810
	79,276,000	New Albertson’s, Inc., 7.450%, 8/01/2029		63,618,990
	22,640,000	New Albertson’s, Inc., 7.750%, 6/15/2026		18,451,600
	17,140,000	New Albertson’s, Inc., 8.000%, 5/01/2031		14,097,650
	5,815,000	New Albertson’s, Inc., 8.700%, 5/01/2030		4,950,019
	16,342,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		11,766,240
	34,580,000	SUPERVALU, Inc., 6.750%, 6/01/2021, 144A		32,851,000

				152,252,309

		Supranational — 1.4%
	16,375,000	European Bank for Reconstruction & Development, 6.250%, 2/05/2016, (BRL)		6,871,249
	250,500,000,000	European Bank for Reconstruction & Development, 7.200%, 6/08/2016, (IDR)		21,082,669
	128,560,000	European Bank for Reconstruction & Development, EMTN, 9.000%, 4/28/2014, (BRL)		57,942,780
	60,665,000	European Investment Bank, MTN, 6.250%, 4/15/2015, (AUD)		59,498,929
	24,450,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		21,419,451
	8,300,000	International Bank for Reconstruction & Development, 1.430%, 3/05/2014, (SGD)		6,630,692
	72,900,000	International Finance Corp., GMTN, 5.000%, 12/21/2015, (BRL)		30,208,618

				203,654,388

		Technology — 1.2%
	93,399,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		78,922,155
	5,845,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		4,880,575
	25,000,000	Alcatel-Lucent USA, Inc., 8.875%, 1/01/2020, 144A		26,375,000
	34,955,000	Amkor Technology, Inc., 6.375%, 10/01/2022		33,382,025
	14,000,000	First Data Corp., 10.625%, 6/15/2021, 144A		14,210,000

See accompanying notes to financial statements.

| 22

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Technology — continued
$	8,015,000	First Data Corp., 11.250%, 1/15/2021, 144A	$	8,375,675
	475,000	Motorola Solutions, Inc., 6.000%, 11/15/2017		541,899
	2,562,000	Motorola Solutions, Inc., 6.625%, 11/15/2037		2,606,166
	225,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		272,691
	3,615,000	SunGard Data Systems, Inc., 6.625%, 11/01/2019		3,687,300

				173,253,486

		Textile — 0.0%
	4,050,000	Jones Group, Inc. (The), 6.125%, 11/15/2034		3,138,750
	3,450,000	Jones Group, Inc./Apparel Group Holdings/Apparel Group USA/Footwear Accessories Retail, 6.875%, 3/15/2019		3,527,625

				6,666,375

		Transportation Services — 0.4%
	10,503,000	APL Ltd., 8.000%, 1/15/2024(d)		9,822,406
	6,098,586	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 7/02/2015(c)		6,205,311
	6,862,758	Atlas Air Pass Through Trust, Series 1998-1, Class C, 8.010%, 7/02/2011(c)(g)(h)		8,990,213
	5,254,119	Atlas Air Pass Through Trust, Series 1999-1, Class A-1, 7.200%, 7/02/2020(c)		5,385,472
	4,650,730	Atlas Air Pass Through Trust, Series 1999-1, Class B, 7.630%, 7/02/2016(c)		4,680,029
	4,744,556	Atlas Air Pass Through Trust, Series 1999-1, Class C, 8.770%, 7/02/2012(c)(g)(h)		6,215,368
	2,349,241	Atlas Air Pass Through Trust, Series 2000-1, Class B, 9.057%, 7/02/2017(c)		2,490,196
	3,970,000	Erac USA Finance Co., 7.000%, 10/15/2037, 144A		4,703,962
	4,115,000	Jack Cooper Holdings Corp., 9.250%, 6/01/2020, 144A		4,403,050

				52,896,007

		Treasuries — 11.9%
	80,220,000	Canadian Government, 1.000%, 8/01/2016, (CAD)		77,010,577
	272,755,000	Canadian Government, 2.250%, 8/01/2014, (CAD)		267,408,732
	201,485,000	Canadian Government, 2.500%, 6/01/2015, (CAD)		199,971,002
	89,045,000	Canadian Government, 3.000%, 12/01/2015, (CAD)		89,700,270
	71,980,000	Canadian Government, 3.750%, 6/01/2019, (CAD)		76,364,278
	25,445,000	Canadian Government, 4.250%, 6/01/2018, (CAD)		27,385,890
	1,440,000	Italy Buoni Poliennali Del Tesoro, 5.000%, 8/01/2034, (EUR)		1,946,756
	1,440,000	Italy Buoni Poliennali Del Tesoro, 5.250%, 11/01/2029, (EUR)		2,021,392
	1,435,000	Italy Buoni Poliennali Del Tesoro, 5.750%, 2/01/2033, (EUR)		2,117,579
	20,219,481(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		176,579,503
	75,670,000	New Zealand Government Bond, 6.000%, 12/15/2017, (NZD)		67,894,414
	836,485,000	Norwegian Government Bond, 4.250%, 5/19/2017, (NOK)		150,179,887
	1,266,835,000	Norwegian Government Bond, 5.000%, 5/15/2015, (NOK)		221,794,984
	23,580,000	Portugal Obrigacoes do Tesouro OT, 3.850%, 4/15/2021, 144A, (EUR)		26,581,555
	1,995,000	Portugal Obrigacoes do Tesouro OT, 4.100%, 4/15/2037, 144A, (EUR)		1,845,371
	6,225,000	Portugal Obrigacoes do Tesouro OT, 4.800%, 6/15/2020, 144A, (EUR)		7,566,578
	43,330,000	Portugal Obrigacoes do Tesouro OT, 4.950%, 10/25/2023, 144A, (EUR)		50,881,301

See accompanying notes to financial statements.

23 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Treasuries — continued
	65,300,000	Singapore Government Bond, 1.375%, 10/01/2014, (SGD)	$	52,594,048
	72,860,000	U.S. Treasury Bond, 2.750%, 11/15/2042		60,303,016
	81,630,000	U.S. Treasury Bond, 2.875%, 5/15/2043		69,283,462
	169,985,000	U.S. Treasury Note, 0.250%, 6/30/2014		170,177,593

				1,799,608,188

		Wireless — 1.0%
	293,000,000	America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)		20,955,135
	47,603,000	NII Capital Corp., 10.000%, 8/15/2016		45,698,880
	31,041,000	Sprint Capital Corp., 6.875%, 11/15/2028		27,704,093
	29,252,000	Sprint Capital Corp., 6.900%, 5/01/2019		30,056,430
	6,260,000	Sprint Capital Corp., 8.750%, 3/15/2032		6,361,725
	23,641,000	Sprint Corp., 7.250%, 9/15/2021, 144A		23,877,410

				154,653,673

		Wirelines — 3.9%
	2,825,000	Axtel SAB de CV, (Step to 8.000% on 1/31/2014), 7.000%, 1/31/2020, 144A(i)		2,641,375
	4,370,000	Bell Canada, MTN, 6.550%, 5/01/2029, 144A, (CAD)		4,949,654
	21,480,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		23,176,629
	72,320,000	CenturyLink, Inc., 6.450%, 6/15/2021		71,958,400
	765,000	CenturyLink, Inc., 7.650%, 3/15/2042		680,850
	7,410,000	CenturyLink, Inc., Series G, 6.875%, 1/15/2028		6,743,100
	2,965,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		2,646,263
	350,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		318,500
	17,900,000	Eircom Finance Ltd., 9.250%, 5/15/2020, 144A, (EUR)		24,216,023
	5,330,000	Embarq Corp., 7.995%, 6/01/2036		5,426,318
	37,225,000	FairPoint Communications, Inc., 8.750%, 8/15/2019, 144A		37,876,437
	38,336,000	Frontier Communications Corp., 7.875%, 1/15/2027		36,419,200
	1,120,000	Koninklijke (Royal) KPN NV, EMTN, 5.750%, 3/18/2016, (GBP)		1,981,783
	1,800,000	Koninklijke (Royal) KPN NV, GMTN, 4.000%, 6/22/2015, (EUR)		2,560,881
	28,505,000	Level 3 Financing, Inc., 7.000%, 6/01/2020		28,790,050
	5,965,000	Level 3 Financing, Inc., 8.625%, 7/15/2020		6,516,762
	2,555,000	Level 3 Financing, Inc., 9.375%, 4/01/2019		2,816,888
	4,667,000	Oi S.A., 5.750%, 2/10/2022, 144A		4,083,625
	500,000	OTE PLC, GMTN, 4.625%, 5/20/2016, (EUR)		666,279
	16,550,000	Portugal Telecom International Finance BV, EMTN, 4.500%, 6/16/2025, (EUR)		19,747,693
	29,750,000	Portugal Telecom International Finance BV, EMTN, 5.000%, 11/04/2019, (EUR)		40,448,538
	750,000	Portugal Telecom International Finance BV, EMTN, 5.625%, 2/08/2016, (EUR)		1,060,297
	800,000	Portugal Telecom International Finance BV, GMTN, 4.375%, 3/24/2017, (EUR)		1,095,852
	16,145,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		17,436,600
	42,460,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		37,789,400
	12,463,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		12,649,945
	32,395,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		30,613,275
	31,060,000	Qwest Corp., 6.875%, 9/15/2033		30,087,698
	3,075,000	Qwest Corp., 7.200%, 11/10/2026		3,076,614
	3,999,000	Qwest Corp., 7.250%, 9/15/2025		4,472,714
	36,551,000	Telecom Italia Capital S.A., 6.000%, 9/30/2034		30,061,480
	22,645,000	Telecom Italia Capital S.A., 6.375%, 11/15/2033		19,450,289

See accompanying notes to financial statements.

| 24

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Wirelines — continued
	7,200,000	Telecom Italia SpA, EMTN, 5.250%, 3/17/2055, (EUR)	$	7,623,128
	5,250,000	Telefonica Emisiones SAU, 4.570%, 4/27/2023		5,034,629
	4,350,000	Telefonica Emisiones SAU, 7.045%, 6/20/2036		4,617,077
	31,690,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		33,179,665
	18,600,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)		19,745,199
	3,346,000	Verizon New England, Inc., 7.875%, 11/15/2029		3,903,467
	2,080,000	Verizon Pennsylvania, Inc., 6.000%, 12/01/2028		2,023,917

				588,586,494

		Total Non-Convertible Bonds (Identified Cost $8,507,337,543)		8,872,940,931


	Convertible Bonds — 8.3%
		Airlines — 0.0%
	1,255,000	United Continental Holdings, Inc., 4.500%, 6/30/2021		1,362,227

		Automotive — 1.6%
	125,580,000	Ford Motor Co., 4.250%, 11/15/2016		248,098,987

		Construction Machinery — 0.2%
	4,240,000	ArvinMeritor, Inc., (Step to Zero Coupon on 2/15/2019), 4.000%, 2/15/2027(i)		3,874,300
	8,460,000	Navistar International Corp., 3.000%, 10/15/2014		8,571,037
	16,727,000	Trinity Industries, Inc., 3.875%, 6/01/2036		20,291,942

				32,737,279

		Healthcare — 0.5%
	7,105,000	Hologic, Inc., (accretes to principal after 12/15/2013), 2.000%, 12/15/2037(i)		7,113,881
	13,415,000	Hologic, Inc., (accretes to principal after 3/01/2018), 2.000%, 3/01/2042(i)		13,482,075
	2,380,000	LifePoint Hospitals, Inc., 3.500%, 5/15/2014		2,504,950
	3,780,000	Omnicare, Inc., 3.250%, 12/15/2035		4,016,250
	20,495,000	Omnicare, Inc., 3.750%, 12/15/2025		43,539,066

				70,656,222

		Home Construction — 0.6%
	52,005,000	Lennar Corp., 3.250%, 11/15/2021, 144A		86,328,300

		Independent Energy — 0.4%
	20,440,000	Chesapeake Energy Corp., 2.250%, 12/15/2038		18,651,500
	24,655,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		24,223,538
	9,196,000	Chesapeake Energy Corp., 2.750%, 11/15/2035		9,494,870

				52,369,908

		Life Insurance — 0.6%
	72,915,000	Old Republic International Corp., 3.750%, 3/15/2018		86,176,416

		Metals & Mining — 0.2%
	1,000,000	Steel Dynamics, Inc., 5.125%, 6/15/2014		1,091,250
	21,845,000	United States Steel Corp., 2.750%, 4/01/2019		24,179,684

				25,270,934

		Non-Captive Diversified — 0.0%
	5,025,000	Jefferies Group LLC, 3.875%, 11/01/2029		5,266,828

See accompanying notes to financial statements.

25 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Packaging — 0.2%
$	30,570,000	Owens-Brockway Glass Container, Inc., 3.000%, 6/01/2015, 144A	$	31,620,844

		Pharmaceuticals — 0.0%
	1,810,000	Illumina, Inc., 0.250%, 3/15/2016, 144A		2,065,663

		REITs – Mortgage — 0.1%
	10,660,000	iStar Financial, Inc., 3.000%, 11/15/2016		13,291,688

		REITs – Warehouse/Industrials — 0.1%
	19,445,000	ProLogis LP, 3.250%, 3/15/2015		22,009,309

		Technology — 3.0%
	49,215,000	Ciena Corp., 0.875%, 6/15/2017		50,107,022
	7,185,000	Ciena Corp., 3.750%, 10/15/2018, 144A		10,584,403
	6,075,000	Ciena Corp., 4.000%, 3/15/2015, 144A		8,250,609
	2,429,000	Intel Corp., 2.950%, 12/15/2035		2,629,393
	205,005,000	Intel Corp., 3.250%, 8/01/2039		253,821,816
	1,055,000	Lam Research Corp., Series B, 1.250%, 5/15/2018		1,269,297
	5,714,290	Liberty Media LLC, 3.500%, 1/15/2031		2,942,859
	52,965,000	Micron Technology, Inc., Series B, 1.875%, 8/01/2031		99,276,272
	8,550,000	Micron Technology, Inc., Series C, 2.375%, 5/01/2032		16,351,875
	6,000,000	Micron Technology, Inc., Series D, 3.125%, 5/01/2032		11,377,500

				456,611,046

		Utility Other — 0.0%
	1,800,000	CMS Energy Corp., 5.500%, 6/15/2029		3,454,875

		Wirelines — 0.8%
	3,220,500	Axtel SAB de CV, (Step to 8.000% on 1/31/2014), 7.000%, 1/31/2020, 144A, (MXN)(c)(d)(i)(j)		368,219
	6,000,000	Level 3 Communications, Inc., 6.500%, 10/01/2016		9,052,500
	54,075,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(d)		65,633,531
	32,895,000	Level 3 Communications, Inc., Series B, 7.000%, 3/15/2015(d)		39,926,306
	900,000	Portugal Telecom International Finance BV, Series PTC, 4.125%, 8/28/2014, (EUR)		1,235,829

				116,216,385

		Total Convertible Bonds (Identified Cost $892,239,057)		1,253,536,911


	Municipals — 1.0%
		District of Columbia — 0.0%
	3,850,000	Metropolitan Washington DC Airports Authority, Series D, 8.000%, 10/01/2047		4,258,177

		Illinois — 0.3%
	1,725,000	Chicago O’Hare International Airport, Series A, (AGMC insured), 4.500%, 1/01/2038		1,595,349
	47,285,000	State of Illinois, 5.100%, 6/01/2033		41,924,300

				43,519,649

See accompanying notes to financial statements.

| 26

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Michigan — 0.1%
$	12,580,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034	$	9,914,801

		Virginia — 0.6%
	125,265,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046		86,725,970

		Total Municipals (Identified Cost $179,330,492)		144,418,597

		Total Bonds and Notes (Identified Cost $9,578,907,092)		10,270,896,439


	Senior Loans — 2.0%
		Automotive — 0.1%
	11,422,600	TI Group Automotive Systems LLC, Term Loan B, 5.500%, 3/27/2019(b)		11,529,744

		Chemicals — 0.3%
	2,000,000	Allnex USA, Inc., 2nd Lien Term Loan, 8.250%, 4/03/2020(b)		2,045,000
	4,850,737	Ascend Performance Materials LLC, Term Loan B, 6.750%, 4/10/2018(b)		4,590,010
	31,355,000	Houghton International, Inc., New 2nd Lien Term Loan, 9.500%, 12/18/2020(b)		31,394,194

				38,029,204

		Consumer Products — 0.1%
	8,589,669	Visant Holding Corp., Term Loan B, 5.250%, 12/22/2016(b)		8,315,144

		Diversified Manufacturing — 0.0%
	6,385,000	Ameriforge Group, Inc., 2nd Lien Term Loan, 8.750%, 12/18/2020(b)		6,436,910

		Electric — 0.0%
	4,788,467	Texas Competitive Electric Holdings Company LLC, Non-Extended Term Loan, 3.710%, 10/10/2014(k)		3,229,629

		Food & Beverage — 0.1%
	11,501,000	DS Waters of America, Inc., New Term Loan, 5.250%, 8/19/2020(b)		11,580,127

		Healthcare — 0.1%
	20,772,938	Apria Healthcare Group I, Term Loan, 6.750%, 4/05/2020(b)		20,911,078

		Media Non-Cable — 0.1%
	19,475,891	SuperMedia, Inc., Exit Term Loan, 11.600%, 12/30/2016(b)		15,074,340

		Metals & Mining — 0.3%
	11,503,800	Essar Steel Algoma, Inc., ABL Term Loan, 8.750%, 9/19/2014(b)		11,659,101
	33,417,450	FMG Resources (August 2006) Pty Ltd., Term Loan, 5.250%, 10/18/2017(b)		33,494,979

				45,154,080

		Non-Captive Diversified — 0.5%
	78,617,233	iStar Financial, Inc., Add on Term Loan A2, 7.000%, 3/17/2017(b)		80,425,429

		Oil Field Services — 0.2%
	26,160,164	Frac Tech International LLC, Term Loan B, 8.500%, 5/06/2016(b)		25,623,881

		Other Utility — 0.0%
	1,298,000	Power Team Services LLC, 2nd Lien Term Loan, 8.250%, 11/06/2020(b)		1,294,755

		Retailers — 0.0%
	3,000,000	Toys R Us Property Company I LLC, New Term Loan B, 6.000%, 8/21/2019(b)		2,945,640

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Supermarkets — 0.1%
$	13,800,977	Supervalu, Inc., Refi Term Loan B, 5.000%, 3/21/2019(b)	$	13,749,223

		Wirelines — 0.1%
	17,702,607	Hawaiian Telcom Communications, Inc., Term Loan B, 5.000%, 6/06/2019(b)		17,720,309
	1,495,000	Integra Telecom, Inc., 2nd Lien Term Loan, 9.750%, 2/21/2020(b)		1,531,209
	2,645,000	Light Tower Fiber LLC, 2nd Lien Term Loan, 8.000%, 4/12/2021(b)		2,671,450

				21,922,968

		Total Senior Loans (Identified Cost $306,903,703)		306,222,152


Shares
	Common Stocks — 18.8%
		Biotechnology — 0.5%
	930,495	Vertex Pharmaceuticals, Inc.(g)		70,550,131

		Chemicals — 2.5%
	1,364,851	Dow Chemical Co. (The)		52,410,278
	2,000,000	PPG Industries, Inc.		334,120,000

				386,530,278

		Containers & Packaging — 0.1%
	460,656	Owens-Illinois, Inc.(g)		13,828,893
	2,304	Rock-Tenn Co., Class A		233,326

				14,062,219

		Diversified Financial Services — 0.4%
	3,979,932	Bank of America Corp.		54,923,062

		Diversified Telecommunication Services — 2.2%
	183,181	FairPoint Communications, Inc.(g)		1,749,379
	283,397	Hawaiian Telcom Holdco, Inc.(g)		7,538,360
	200,000	Telecom Italia SpA, Sponsored ADR		1,630,000
	3,871,339	Telecom Italia SpA, Sponsored ADR		25,395,984
	19,550,590	Telefonica S.A., Sponsored ADR(g)		302,643,133

				338,956,856

		Electric Utilities — 0.0%
	94,166	Duke Energy Corp.		6,288,405

		Electronic Equipment, Instruments & Components — 3.1%
	32,000,000	Corning, Inc.		466,880,000

		Food Products — 0.5%
	2,309,175	ConAgra Foods, Inc.		70,060,370

		Household Durables — 0.2%
	477,725	KB Home		8,608,605
	549,450	Lennar Corp., Class A		19,450,530

				28,059,135

		Insurance — 0.8%
	1,510,275	Prudential Financial, Inc.		117,771,244

See accompanying notes to financial statements.

| 28

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Shares		Description	Value (†)
		Oil, Gas & Consumable Fuels — 2.0%
	846,398	Chesapeake Energy Corp.	$	21,904,780
	5,351,804	Repsol YPF S.A., Sponsored ADR		132,243,077
	2,134,173	Royal Dutch Shell PLC, ADR		140,172,483
	141,249	Spectra Energy Corp.		4,834,953

				299,155,293

		Pharmaceuticals — 3.8%
	8,514,190	Bristol-Myers Squibb Co.		394,036,713
	2,288	Teva Pharmaceutical Industries, Ltd., Sponsored ADR		86,441
	1,708,077	Valeant Pharmaceuticals International, Inc.(g)		178,203,673

				572,326,827

		REITs – Apartments — 0.3%
	290,904	Apartment Investment & Management Co., Class A		8,127,858
	889,730	Associated Estates Realty Corp.		13,265,874
	460,000	Equity Residential		24,642,200

				46,035,932

		REITs – Regional Malls — 0.1%
	123,159	Simon Property Group, Inc.		18,255,859

		REITs – Shopping Centers — 0.0%
	201,557	DDR Corp.		3,166,460

		Semiconductors & Semiconductor Equipment — 2.2%
	14,733,856	Intel Corp.		337,699,980

		Trading Companies & Distributors — 0.1%
	176,859	United Rentals, Inc.(g)		10,309,111

		Total Common Stocks (Identified Cost $2,169,767,383)		2,841,031,162


	Preferred Stocks — 4.1%
	Convertible Preferred Stocks — 3.4%
		Automotive — 1.4%
	3,398,365	General Motors Co., Series B, 4.750%		170,428,005
	657,940	Goodyear Tire & Rubber Co. (The), 5.875%		41,897,619

				212,325,624

		Banking — 0.1%
	8,533	Wells Fargo & Co., Series L, Class A, 7.500%		9,706,373

		Electric — 0.1%
	380,577	AES Trust III, 6.750%		19,181,081

		Home Construction — 0.1%
	355,000	Hovnanian Enterprises, Inc., 7.250%		9,425,250

		Independent Energy — 0.4%
	52,020	Chesapeake Energy Corp., 4.500%		4,601,689
	66,673	Chesapeake Energy Corp., 5.000%		6,193,922
	24,658	Chesapeake Energy Corp., Series A, 5.750%, 144A		27,200,856

See accompanying notes to financial statements.

29 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Shares		Description	Value (†)
		Independent Energy — continued
	61,053	SandRidge Energy, Inc., 7.000%	$	6,090,037
	99,800	SandRidge Energy, Inc., 8.500%		9,999,960

				54,086,464

		Metals & Mining — 0.4%
	2,837,383	ArcelorMittal, 6.000%		60,975,361
	312,604	Cliffs Natural Resources, Inc., 7.000%		6,180,181

				67,155,542

		Non-Captive Diversified — 0.1%
	19,062	Bank of America Corp., Series L, 7.250%		20,586,960

		Pipelines — 0.1%
	242,297	El Paso Energy Capital Trust I, 4.750%		13,600,130

		REITs – Diversified — 0.1%
	391,776	Weyerhaeuser Co., Series A, 6.375%		20,756,292

		REITs – Healthcare — 0.0%
	116,700	Health Care REIT, Inc., Series I, 6.500%		6,716,085

		REITs – Mortgage — 0.2%
	450,965	iStar Financial, Inc., Series J, 4.500%		24,974,442

		Technology — 0.4%
	58,020	Lucent Technologies Capital Trust I, 7.750%		58,774,260

		Total Convertible Preferred Stocks (Identified Cost $471,133,002)		517,288,503


	Non-Convertible Preferred Stocks — 0.7%
		Banking — 0.4%
	45,861	Ally Financial, Inc., Series G, 7.000%, 144A		43,820,185
	35,000	Bank of America Corp., 6.375%		835,450
	389,800	Countrywide Capital IV, 6.750%		9,706,020

				54,361,655

		Electric — 0.0%
	393	Entergy New Orleans, Inc., 4.750%		37,937

		Government Sponsored — 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(i)		27,007,500

		Home Construction — 0.0%
	208,246	Hovnanian Enterprises, Inc., 7.625%(g)		3,011,237

		Non-Captive Consumer — 0.0%
	101,175	SLM Corp., Series A, 6.970%		4,714,755

		Non-Captive Diversified — 0.0%
	10,425	iStar Financial, Inc., Series G, 7.650%		239,775
	39,300	iStar Financial, Inc., Series F, 7.800%		920,799
	39,200	iStar Financial, Inc., Series E, 7.875%		925,904

				2,086,478

See accompanying notes to financial statements.

| 30

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)


Shares		Description	Value (†)
		REITs – Office Property — 0.0%
	1,596	Highwoods Properties, Inc., Series A, 8.625%	$	1,879,290

		REITs – Warehouse/Industrials — 0.1%
	116,192	ProLogis, Inc., Series Q, 8.540%		6,570,658

		Total Non-Convertible Preferred Stocks (Identified Cost $63,496,051)		99,669,510

		Total Preferred Stocks (Identified Cost $534,629,053)		616,958,013


	Closed End Investment Companies — 0.0%
	681,131	NexPoint Credit Strategies Fund (Identified Cost $10,230,353)		5,210,652


Principal Amount (‡)
	Short-Term Investments — 5.4%
$	393,355,166	Repurchase Agreement with State Street Bank and Trust Company, dated 9/30/2013 at 0.000% to be repurchased at $393,355,166 on 10/01/2013 collateralized by $51,105,000 Federal Home Loan Mortgage Corp., 2.500% due 4/01/2028 valued at $49,226,638; $300,000,000 Government National Mortgage Association, 2.500% due 3/20/2028 valued at $290,716,608; $62,655,000 Government National Mortgage Association, 2.500% due 2/20/2028 valued at $60,203,864; $1,195,000 Federal National Mortgage Association, 2.080% due 11/02/2022 valued at $1,110,365 including accrued interest (Note 2 of Notes to Financial Statements)		393,355,166
	417,982,882	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2013 at 0.000% to be repurchased at $417,982,882 on 10/01/2013 collateralized by $155,000 U.S. Treasury Note, 1.750% due 1/31/2014 valued at $156,356; $10,965,000 U.S. Treasury Note, 1.375% due 12/31/2018 valued at $10,951,294; $60,875,000 U.S. Treasury Note, 2.000% due 2/15/2022 valued at $59,353,125; $143,030,000 U.S. Treasury Note, 1.750% due 5/15/2022 valued at $136,571,337; $23,990,000 U.S. Treasury Note, 0.250% due 6/30/2014 valued at $24,019,988; $55,425,000 U.S. Treasury Note, 0.875% due 7/31/2019 valued at $53,011,241; $82,895,000 U.S. Treasury Note, 0.625% due 8/31/2017 valued at $81,651,575; $53,855,000 U.S. Treasury Note, 0.375% due 11/15/2015 valued at $53,930,720; $7,005,000 U.S. Treasury Note, 1.125% due 4/30/2020 valued at $6,698,531 including accrued interest (Note 2 of Notes to Financial Statements)		417,982,882

		Total Short-Term Investments (Identified Cost $811,338,048)		811,338,048


		Total Investments — 98.4% (Identified Cost $13,411,775,632)(a)		14,851,656,466
		Other assets less liabilities — 1.6%		241,140,767

		Net Assets — 100.0%	$	15,092,797,233

See accompanying notes to financial statements.

31 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)



(‡)	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:
	At September 30, 2013, the net unrealized appreciation on investments based on a cost of $13,514,566,951 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	$	1,909,527,193
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(572,437,678	)

	Net unrealized appreciation	$	1,337,089,515


(b)	Variable rate security. Rate as of September 30, 2013 is disclosed.
(c)	Fair valued by the Fund’s investment adviser. At September 30, 2013, the value of these securities amounted to $45,615,465 or 0.3% of net assets.
(d)	Illiquid security. At September 30, 2013, the value of these securities amounted to $286,528,290 or 1.9% of net assets.
(e)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
(f)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities. For the period ended September 30, 2013, the issuer has paid out 100% of the interest payments in-kind.
(g)	Non-income producing security.
(h)	Maturity has been extended under the terms of a plan of reorganization.
(i)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(j)	Convertible dollar-indexed note. Coupon rate is based on MXN denominated par value and is payable in USD.
(k)	Variable rate security. Rate shown represents the weighted average rate of underlying contracts at September 30, 2013.
(l)	Perpetual bond with no specified maturity date.

144A	All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the value of Rule 144A holdings amounted to $2,239,444,894 or 14.8% of net assets.
ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.
ABS	Asset-Backed Securities
AGMC	Assured Guaranty Municipal Corp.
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MBIA	Municipal Bond Investors Assurance Corp.
MTN	Medium Term Note
PIK	Payment-in-Kind
REITs	Real Estate Investment Trusts

See accompanying notes to financial statements.

| 32

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)



	AUD			Australian Dollar
	BRL			Brazilian Real
	CAD			Canadian Dollar
	CHF			Swiss Franc
	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
	USD			U.S. Dollar

Industry Summary at September 30, 2013 (Unaudited)


Treasuries	11.9	%
Banking	7.9
Wirelines	4.8
Technology	4.6
Non-Captive Diversified	4.4
Pharmaceuticals	4.2
Automotive	3.9
Chemicals	3.2
Non-Captive Consumer	3.1
Electronic Equipment, Instruments & Components	3.1
Healthcare	2.7
Airlines	2.3
Diversified Telecommunication Services	2.2
Semiconductors & Semiconductor Equipment	2.2
Electric	2.1
Oil, Gas & Consumable Fuels	2.0
Local Authorities	2.0
Other Investments, less than 2% each	26.4
Short-Term Investments	5.4

Total Investments	98.4
Other assets less liabilities	1.6

Net Assets	100.0	%

See accompanying notes to financial statements.

33 |

Portfolio of Investments – as of September 30, 2013

Loomis Sayles Strategic Income Fund – (continued)

Currency Exposure Summary at September 30, 2013 (Unaudited)


United States Dollar	73.9	%
Canadian Dollar	5.9
New Zealand Dollar	4.2
Euro	3.4
Australian Dollar	3.0
Norwegian Krone	2.5
Other, less than 2% each	5.5

Total Investments	98.4
Other assets less liabilities	1.6

Net Assets	100.0	%

See accompanying notes to financial statements.

| 34

Statement of Assets and Liabilities

September 30, 2013


ASSETS
Investments at cost	$	13,411,775,632
Net unrealized appreciation		1,439,880,834

Investments at value		14,851,656,466
Cash		57,463
Foreign currency at value (identified cost $43,898,433)		44,047,639
Receivable for Fund shares sold		44,019,660
Receivable for securities sold		17,655,162
Dividends and interest receivable		167,229,616
Tax reclaims receivable		569,154

TOTAL ASSETS		15,125,235,160

LIABILITIES
Payable for securities purchased		2,385,072
Payable for Fund shares redeemed		20,852,453
Foreign taxes payable (Note 2)		80,099
Management fees payable (Note 5)		6,834,449
Deferred Trustees’ fees (Note 5)		947,921
Administrative fees payable (Note 5)		542,955
Payable to distributor (Note 5d)		141,503
Other accounts payable and accrued expenses		653,475

TOTAL LIABILITIES		32,437,927

NET ASSETS	$	15,092,797,233

NET ASSETS CONSIST OF:
Paid-in capital	$	13,687,473,125
Distributions in excess of net investment income		(30,654,351	)
Accumulated net realized loss on investments and foreign currency transactions		(3,731,751	)
Net unrealized appreciation on investments and foreign currency translations		1,439,710,210

NET ASSETS	$	15,092,797,233

See accompanying notes to financial statements.

35 |

Statement of Assets and Liabilities (continued)

September 30, 2013


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	5,239,885,221

Shares of beneficial interest		328,902,989

Net asset value and redemption price per share	$	15.93

Offering price per share (100/95.50 of net asset value) (Note 1)	$	16.68

Class B shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	57,275,860

Shares of beneficial interest		3,568,486

Net asset value and offering price per share	$	16.05

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	4,912,727,307

Shares of beneficial interest		306,486,670

Net asset value and offering price per share	$	16.03

Class N shares:
Net assets	$	12,921,017

Shares of beneficial interest		811,624

Net asset value, offering and redemption price per share	$	15.92

Class Y shares:
Net assets	$	4,789,321,725

Shares of beneficial interest		300,857,969

Net asset value, offering and redemption price per share	$	15.92

Admin Class shares:
Net assets	$	80,666,103

Shares of beneficial interest		5,076,823

Net asset value, offering and redemption price per share	$	15.89

See accompanying notes to financial statements.

| 36

Statement of Operations

For the Year Ended September 30, 2013


INVESTMENT INCOME
Interest	$	653,593,604
Dividends		108,188,288
Less net foreign taxes withheld		(2,349,214	)

		759,432,678

Expenses
Management fees (Note 5)		83,160,819
Service and distribution fees (Note 5)		64,330,676
Administrative fees (Note 5)		6,600,818
Trustees’ fees and expenses (Note 5)		367,149
Transfer agent fees and expenses (Note 5)		10,837,860
Audit and tax services fees		55,710
Custodian fees and expenses		1,139,578
Legal fees		200,256
Registration fees		427,128
Shareholder reporting expenses		1,158,344
Miscellaneous expenses		336,512

Total expenses		168,614,850

Net investment income		590,817,828

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		340,991,782
Foreign currency transactions		(3,780,062	)
Net change in unrealized appreciation (depreciation) on:
Investments		376,449,673
Foreign currency translations		(683,725	)

Net realized and unrealized gain on investments and foreign currency transactions		712,977,668

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,303,795,496

See accompanying notes to financial statements.

37 |

Statement of Changes in Net Assets


	Year Ended September 30, 2013			Year Ended September 30, 2012
FROM OPERATIONS:
Net investment income	$	590,817,828		$	642,076,865
Net realized gain on investments and foreign currency transactions		337,211,720			288,184,441
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		375,765,948			835,269,437

Net increase in net assets resulting from operations		1,303,795,496			1,765,530,743

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A		(257,191,132	)		(300,094,602	)
Class B		(3,107,922	)		(4,942,822	)
Class C		(209,818,508	)		(241,863,153	)
Class N		(310,035	)		—
Class Y		(237,288,037	)		(208,703,036	)
Admin Class		(3,078,138	)		(1,997,277	)

Total distributions		(710,793,772	)		(757,600,890	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 9)		(197,955,273	)		820,378,728

Net increase in net assets		395,046,451			1,828,308,581
NET ASSETS
Beginning of the year		14,697,750,782			12,869,442,201

End of the year	$	15,092,797,233		$	14,697,750,782

UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME	$	(30,654,351	)	$	38,251,969

See accompanying notes to financial statements.

| 38

Financial Highlights

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:							Less Distributions:
	Net asset value, beginning of the period		Net investment income (a)		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
9/30/2013	$	15.30	$	0.65	$	0.76		$	1.41	$	(0.78	)	$	—		$	(0.78	)
9/30/2012		14.21		0.72		1.21			1.93		(0.84	)		—			(0.84	)
9/30/2011		14.69		0.77		(0.42	)		0.35		(0.83	)		—			(0.83	)
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	)
Class B
9/30/2013		15.41		0.54		0.76			1.30		(0.66	)		—			(0.66	)
9/30/2012		14.30		0.61		1.23			1.84		(0.73	)		—			(0.73	)
9/30/2011		14.78		0.66		(0.43	)		0.23		(0.71	)		—			(0.71	)
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	)
Class C
9/30/2013		15.39		0.54		0.76			1.30		(0.66	)		—			(0.66	)
9/30/2012		14.29		0.61		1.23			1.84		(0.74	)		—			(0.74	)
9/30/2011		14.77		0.66		(0.43	)		0.23		(0.71	)		—			(0.71	)
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	)
Class N*
9/30/2013		15.78		0.46		0.16			0.62		(0.48	)		—			(0.48	)
Class Y
9/30/2013		15.29		0.69		0.76			1.45		(0.82	)		—			(0.82	)
9/30/2012		14.20		0.75		1.22			1.97		(0.88	)		—			(0.88	)
9/30/2011		14.68		0.81		(0.43	)		0.38		(0.86	)		—			(0.86	)
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	)
Admin Class
9/30/2013		15.27		0.61		0.75			1.36		(0.74	)		—			(0.74	)
9/30/2012		14.18		0.67		1.23			1.90		(0.81	)		—			(0.81	)
9/30/2011		14.66		0.73		(0.42	)		0.31		(0.79	)		—			(0.79	)
9/30/2010**		13.87		0.52		0.79			1.31		(0.52	)		—			(0.52	)

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

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

See accompanying notes to financial statements.

39 |


						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)		Gross expenses (%) (d)		Net investment income (%) (d)		Portfolio turnover rate (%)

	$15.93		9.43	$	5,239,885		0.95		0.95		4.14		22
	15.30		14.02		5,155,287		0.96		0.96		4.84		30
	14.21		2.20		5,262,765		0.95		0.95		5.10		25
	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

	16.05		8.58		57,276		1.70		1.70		3.39		22
	15.41		13.15		89,552		1.70		1.70		4.11		30
	14.30		1.48		107,400		1.70		1.70		4.35		25
	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

	16.03		8.61		4,912,727		1.70		1.70		3.39		22
	15.39		13.18		5,064,186		1.71		1.71		4.08		30
	14.29		1.42		4,666,077		1.70		1.70		4.35		25
	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

	15.92		4.01		12,921		0.63		0.63		4.38		22

	15.92		9.72		4,789,322		0.70		0.70		4.39		22
	15.29		14.31		4,339,240		0.71		0.71		5.05		30
	14.20		2.46		2,807,777		0.70		0.70		5.35		25
	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

	15.89		9.12		80,666		1.20		1.20		3.89		22
	15.27		13.79		49,486		1.21		1.21		4.52		30
	14.18		1.98		25,424		1.21		1.21		4.87		25
	14.66		9.61		4,379		1.24		1.24		5.52		27

See accompanying notes to financial statements.

| 40

Notes to Financial Statements

September 30, 2013

The Fund is a diversified investment company.

The Fund offers Class A, Class C, Class Y and Admin Class shares. Effective February 1, 2013, the Fund began offering Class N 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.

Most expenses of the Trust 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 Trust. Expenses of the Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (including the Rule 12b-1 service and distribution fees and transfer agent fees for Class N). In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of the Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

2. Significant Accounting Policies. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial

41 |

Notes to Financial Statements (continued)

September 30, 2013

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 year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the 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) and unlisted equity securities are generally valued on the basis of evaluated bids furnished to the Fund by an independent pricing service, recommended by the investment adviser and approved by the Board of Trustees, which 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. Senior loans are priced at bid prices supplied by an independent pricing service, if available. 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 independent pricing services recommended by the investment adviser and approved by the Board of Trustees. Such independent 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 is 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 prices may also be used to value debt and equity securities and senior loans where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Investments in other open-end investment companies are valued at their net asset value each day. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Fund’s investment adviser under the general supervision of the Board of Trustees.

The Fund may hold securities traded in foreign markets. Foreign securities are valued at the closing 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 on a daily basis 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

| 42

Notes to Financial Statements (continued)

September 30, 2013

market activity and/or significant events that occur after the close of the foreign market and before the Fund calculates its net asset value.

b. Investment Transactions and Related Investment Income. Investment transactions are accounted for on a trade date plus one day 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 the Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. Distributions received from investments in securities that represent a return of capital or capital gain are recorded as a reduction of the cost of investments or as a realized gain, respectively. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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

d. 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

43 |

Notes to Financial Statements (continued)

September 30, 2013

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 September 30, 2013 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 twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Fund. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

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 foreign currency transactions, premium amortization, defaulted bond adjustments, paydown gains and losses, preferred securities adjustments, capital gains tax, contingent payment debt instruments and return of capital and capital gain distributions received. 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 wash sales, deferred Trustees’ fees, premium amortization, return of capital distributions received, preferred securities adjustments, contingent payment debt instruments and defaulted bond interest.

| 44

Notes to Financial Statements (continued)

September 30, 2013

Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2013 and 2012 was as follows:


2013 Distributions Paid From:			2012 Distributions Paid From:
Ordinary Income	Long-Term Capital Gains	Total	Ordinary Income	Long-Term Capital Gains	Total
$710,793,772	$ —	$710,793,772	$757,600,890	$ —	$757,600,890

As of September 30, 2013, the components of distributable earnings on a tax basis were as follows:


Undistributed ordinary income	$	42,481,716
Undistributed long-term capital gains		32,224,505

Total undistributed earnings		74,706,221

Unrealized appreciation		1,336,918,891

Total accumulated earnings	$	1,411,625,112

Capital loss carryforward utilized in the current year	$	243,155,719

f. 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.

g. 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

45 |

Notes to Financial Statements (continued)

September 30, 2013

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. Excess collateral in the amount of $2,997,679 related to terminated loans with a bankrupt borrower is held by State Street Bank on behalf of the Fund.

For the year ended September 30, 2013, the Fund did not loan securities under this agreement.

h. 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.

i. New Accounting Pronouncement. In December 2011, Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” was issued and is effective for interim and annual periods beginning after January 1, 2013. The ASU creates new disclosure requirements with respect to an entity’s rights of setoff and related arrangements associated with its financial instruments. Management has evaluated the impact of the adoption of ASU 2011-11 and will incorporate the new disclosures required in the March 31, 2014 report.

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.

| 46

Notes to Financial Statements (continued)

September 30, 2013

The following is a summary of the inputs used to value the Fund’s investments as of September 30, 2013, at value:

Asset Valuation Inputs


Description		Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
Airlines		$	—	$	20,657,366	$	324,635,747	(b)	$	345,293,113
Non-Captive Consumer			2,263,504		467,654,997		—			469,918,501
Retailers			—		87,056,601		11,276,382	(c)		98,332,983
Transportation Services			—		18,929,418		33,966,589	(c)		52,896,007
All Other Non- Convertible Bonds(a)			—		7,906,500,327		—			7,906,500,327

Total Non-Convertible Bonds			2,263,504		8,500,798,709		369,878,718			8,872,940,931

Convertible Bonds
Wirelines			—		115,848,166		368,219	(c)		116,216,385
All Other Convertible Bonds(a)			—		1,137,320,526		—			1,137,320,526

Total Convertible Bonds			—		1,253,168,692		368,219			1,253,536,911

Municipals(a)			—		144,418,597		—			144,418,597

Total Bonds and Notes			2,263,504		9,898,385,998		370,246,937			10,270,896,439

Senior Loans(a)			—		306,222,152		—			306,222,152
Common Stocks(a)	��		2,841,031,162		—		—			2,841,031,162
Preferred Stocks
Convertible Preferred Stocks
Independent Energy			44,086,504		9,999,960		—			54,086,464
All Other Convertible Preferred Stocks(a)			463,202,039		—		—			463,202,039

Total Convertible Preferred Stocks			507,288,543		9,999,960		—			517,288,503

47 |

Notes to Financial Statements (continued)

September 30, 2013

Asset Valuation Inputs (continued)


Description	Level 1		Level 2		Level 3		Total
Non-Convertible Preferred Stocks
Electric	$	—	$	37,937	$	—	$	37,937
Government Sponsored		—		27,007,500		—		27,007,500
REITs – Office Property		—		1,879,290		—		1,879,290
All Other Non-Convertible Preferred Stocks(a)		70,744,783		—		—		70,744,783

Total Non-Convertible Preferred Stocks		70,744,783		28,924,727		—		99,669,510

Total Preferred Stocks		578,033,326		38,924,687		—		616,958,013

Closed End Investment Companies		5,210,652		—		—		5,210,652
Short-Term Investments		—		811,338,048		—		811,338,048

Total	$	3,426,538,644	$	11,054,870,885	$	370,246,937	$	14,851,656,466

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

(b)	Valued using broker-dealer bid prices ($324,631,472) or fair valued by the Fund’s investment adviser ($4,275).

(c)	Fair valued by the Fund’s investment adviser.

A preferred stock valued at $42,901,535 was transferred from Level 2 to Level 1 during the period ended September 30, 2013. At September 30, 2013, this security was valued at the last sale price in accordance with the Fund’s valuation policies.

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

| 48

Notes to Financial Statements (continued)

September 30, 2013

by the investment adviser, subject to oversight by Fund management and the Board of Trustees. If the investment adviser, in good faith, believes that the price provided by an independent pricing service is unreliable, broker-dealer bid prices may be used until the price provided by the independent pricing service is considered to be reliable. Reliability of all security prices, including those obtained from an independent pricing service and broker-dealer bid prices is tested in a variety of ways, including comparison to recent transaction prices and daily fluctuations, amongst other validation procedures in place. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser under the general supervision of the Board of Trustees. Fair valued securities may be categorized in Level 3.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of September 30, 2012 and/or September 30, 2013:

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2012		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
Airlines	$	—	$	222,134	$	1,639,432		$	(1,015,750	)	$	53,430,000
Banking		18,800,082		—		—			—			—
Electric		12,874,750		—		—			5,360,250			—
Retailers		—		31,176		—			(103,144	)		—
Sovereigns		21,173,458		6,238,806		(5,733,038	)		28,113,763			4,435
Transportation Services		8,953,808		—		717,131			6,372,092			—
Convertible Bonds
Wirelines		—		—		(12	)		(132,809	)		1,002,079

Total	$	61,802,098	$	6,492,116	$	(3,376,487	)	$	38,594,402		$	54,436,514

49 |

Notes to Financial Statements (continued)

September 30, 2013

Asset Valuation Inputs (continued)


Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2013		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2013
Bonds and Notes
Non-Convertible Bonds
Airlines	$	(39,805,433	)	$	310,165,364	$	—		$	324,635,747	$	(1,015,750	)
Banking		—			—		(18,800,082	)		—		—
Electric		(18,235,000	)		—		—			—		—
Retailers		—			11,348,350		—			11,276,382		(103,144	)
Sovereigns		(49,797,424	)		—		—			—		—
Transportation Services		(4,458,111	)		31,335,477		(8,953,808	)		33,966,589		6,372,092
Convertible Bonds
Wirelines		(501,039	)		—		—			368,219		(132,809	)

Total	$	(112,797,007	)	$	352,849,191	$	(27,753,890	)	$	370,246,937	$	5,120,389

Debt securities valued at $352,849,191 were transferred from Level 2 to Level 3 during the period ended September 30, 2013. At September 30, 2013, these securities were valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the securities.

Debt securities valued at $27,753,890 were transferred from Level 3 to Level 2 during the period ended September 30, 2013. At September 30, 2013, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

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

4. Purchases and Sales of Securities. For the year ended September 30, 2013, purchases and sales of securities (excluding short-term investments and U.S. Government/Agency securities and including paydowns) were $2,985,491,541 and $3,230,328,525, respectively. Purchases and sales of U.S. Government/Agency securities (excluding short-term investments and including paydowns) were $140,371,862 and $250,239,816, respectively.

| 50

Notes to Financial Statements (continued)

September 30, 2013

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 following annual rates, calculated daily and payable monthly, based on the Fund’s average daily net assets:


Percentage of Average Daily Net Assets
First $200 million	Next $1.8 billion			Next $13 billion			Over $15 billion
0.65%		0.60	%		0.55	%		0.54	%

For the year ended September 30, 2013, 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 N			Class Y			Admin Class
1.25%		2.00	%		2.00	%		0.95	%		1.00	%		1.50	%

For the year ended September 30, 2013, the management fees for the Fund were $83,160,819 (effective rate of 0.56% of average daily net assets).

No expenses were recovered during the year ended September 30, 2013 under the terms of the expense limitation agreement.

51 |

Notes to Financial Statements (continued)

September 30, 2013

| 52

Notes to Financial Statements (continued)

September 30, 2013

For the year ended September 30, 2013, the service and distribution fees for the Fund were as follows:


Service Fees								Distribution Fees
Class A		Class B		Class C		Admin Class		Class B		Class C		Admin Class
	$12,990,119	$	185,878	$	12,567,128	$	164,266	$	557,636	$	37,701,383	$	164,266

For the year ended September 30, 2013, the administrative fees for the Fund were $6,600,818.

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

For the year ended September 30, 2013, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statement of Operations) for the Fund were $10,129,455.

As of September 30, 2013, the Fund owes NGAM Distribution $141,503 in reimbursements for sub-transfer agent fees.

53 |

Notes to Financial Statements (continued)

September 30, 2013

e. Commissions. Commissions (including CDSCs) on Fund shares retained by NGAM Distribution during the year ended September 30, 2013 amounted to $3,680,110.

| 54

Notes to Financial Statements (continued)

September 30, 2013


	Class N
Transfer Agent Fees and Expenses	$	60

For the year ended September 30, 2013, the Fund had no borrowings under these agreements.

55 |

Notes to Financial Statements (continued)

September 30, 2013

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


	Year Ended September 30, 2013					Year Ended September 30, 2012
	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	85,161,020		$	1,344,652,662		89,649,016		$	1,329,714,799
Issued in connection with the reinvestment of distributions	13,495,375			211,445,205		17,112,282			251,237,402
Redeemed	(106,628,096	)		(1,673,657,377	)	(140,160,164	)		(2,089,858,590	)

Net change	(7,971,701	)	$	(117,559,510	)	(33,398,866	)	$	(508,906,389	)

Class B
Issued from the sale of shares	84,938		$	1,342,254		142,281		$	2,116,364
Issued in connection with the reinvestment of distributions	116,207			1,831,113		185,322			2,735,333
Redeemed	(2,445,061	)		(38,778,882	)	(2,023,077	)		(30,224,174	)

Net change	(2,243,916	)	$	(35,605,515	)	(1,695,474	)	$	(25,372,477	)

Class C
Issued from the sale of shares	36,207,754		$	574,188,840		46,818,995		$	698,131,858
Issued in connection with the reinvestment of distributions	7,359,016			115,930,122		8,706,591			128,555,991
Redeemed	(66,124,686	)		(1,046,914,424	)	(52,957,737	)		(789,494,609	)

Net change	(22,557,916	)	$	(356,795,462	)	2,567,849		$	37,193,240

Class N*
Issued from the sale of shares	795,587		$	12,674,081		—		$	—
Issued in connection with the reinvestment of distributions	19,538			310,035		—			—
Redeemed	(3,501	)		(57,560	)	—			—

Net change	811,624		$	12,926,556		—		$	—

Class Y
Issued from the sale of shares	114,234,013		$	1,799,718,390		152,377,472		$	2,276,301,803
Issued in connection with the reinvestment of distributions	8,900,319			139,377,642		7,426,725			109,413,688
Redeemed	(106,030,487	)		(1,668,831,214	)	(73,738,087	)		(1,089,758,132	)

Net change	17,103,845		$	270,264,818		86,066,110		$	1,295,957,359

Admin Class
Issued from the sale of shares	2,237,182		$	35,129,300		1,594,030		$	23,654,032
Issued in connection with the reinvestment of distributions	163,798			2,563,820		108,806			1,599,070
Redeemed	(565,879	)		(8,879,280	)	(253,748	)		(3,746,107	)

Net change	1,835,101		$	28,813,840		1,449,088		$	21,506,995

Increase (decrease) from capital share transactions	(13,022,963	)	$	(197,955,273	)	54,988,707		$	820,378,728

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

| 56

Report of Independent Registered Public

Accounting Firm

To the Trustees of Loomis Sayles Funds II and Shareholders of Loomis Sayles Strategic Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Strategic Income Fund, a series of Loomis Sayles Funds II (the “Fund”), at September 30, 2013, and the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2013 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2013

57 |

2013 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2013, 11.18% of dividends distributed by Strategic Income Fund qualify for the dividends received deduction for corporate shareholders.

Qualified Dividend Income. For the fiscal year ended September 30, 2013, the Strategic Income Fund will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Fund pays a distribution during calendar year 2013, complete information will be reported in conjunction with Form 1099-DIV.

| 58

Trustee and Officer Information

The tables below provide certain information regarding the trustees and officers of Loomis Sayles Funds II (the “Trust”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Fund’s Statement of Additional Information includes additional information about the trustees of the Trust and is available by calling Natixis Funds at 800-225-5478.


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES

Charles D. Baker (1956)	Trustee From 2005 to 2009 and since 2011 Contract Review and Governance Committee Member	Executive in Residence at General Catalyst Partners (venture capital and growth equity firm); formerly, President and Chief Executive Officer, Harvard Pilgrim Health Care (health care organization)	42 Director, Athenahealth, Inc. (software company)	Significant experience on the Board; executive experience (including president and chief executive officer of a health care organization and executive officer of a venture capital and growth equity firm)

Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Contract Review and Governance Committee	Chairman (formerly, President and Chief Executive Officer) of Cain Brothers & Company, Incorporated (investment banking)	42 Director, Sheridan Healthcare Inc. (physician practice management)	Significant experience on the Board and on the board of other business organizations (including at a health care organization); experience in the financial industry (including roles as chairman and former chief executive officer of an investment banking firm)

59 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Kenneth A. Drucker (1945)	Trustee Since 2008 Chairman of the Audit Committee	Retired	42 Formerly, Director, M Fund, Inc. (investment company); Director, Gateway Trust (investment company)	Significant experience on the Board and on the board of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)

Edmond J. English (1953)	Trustee Since 2013 Contract Review and Governance Committee Member	Chief Executive Officer of Bob’s Discount Furniture (retail)	42 Formerly, Director, BJ’s Wholesale Club (retail); formerly, Director, Citizens Financial Group (bank)	Significant experience on the board of other business organizations (including at a retail company and a bank); executive experience (including at a retail company)

| 60

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Wendell J. Knox (1948)	Trustee Since 2009 Audit Committee Member	Director (formerly, President and Chief Executive Officer) of Abt Associates Inc. (research and consulting)	42 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the board of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

Martin T. Meehan (1956)	Trustee Since 2012 Contract Review and Governance Committee Member	Chancellor and faculty member, University of Massachusetts Lowell	42 None	Experience on the Board and on the board of other business organizations; experience as Chancellor of the University of Massachusetts Lowell; government experience (including as a member of the U.S. House of Representatives); academic experience

61 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee Since 2003 Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting)	42 Director, Verizon Communications (telecommunications company); Director, AES Corporation (international power company); formerly, Director, Rohm and Haas Company (specialty chemicals)	Significant experience on the Board and on the board of other business organizations (including at a telecommunications company, an international power company and a specialty chemicals corporation); executive experience (including at a management consulting company)

Erik R. Sirri (1958)	Trustee Since 2009 Audit Committee Member	Professor of Finance at Babson College; formerly, Director of the Division of Trading and Markets at the Securities and Exchange Commission	42 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist

| 62

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INDEPENDENT TRUSTEES continued

Peter J. Smail (1952)	Trustee Since 2009 Contract Review and Governance Committee Member	Retired; formerly, President and Chief Executive Officer of Pyramis Global Advisors (investment management)	42 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School	42 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)

INTERESTED TRUSTEES

Robert J. Blanding³ (1947) 555 California Street San Francisco, CA 94104	Trustee Since 2002 Chief Executive Officer since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	42 None	Significant experience on the Board; continuing service as President, Chairman, and Chief Executive Officer of Loomis, Sayles & Company, L.P.

63 |

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen² and Other Directorships Held During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership

INTERESTED TRUSTEES continued

David L. Giunta⁴ (1965)	Trustee Since 2011 President since 2008	President and Chief Executive Officer, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.	42 None	Experience on the Board; continuing experience as President and Chief Executive Officer of NGAM Advisors, L.P.

John T. Hailer⁵ (1960)	Trustee Since 2003	President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.	42 None	Significant experience on the Board; continuing experience as President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

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

³	Mr. Blanding is deemed an “interested person” of the Trust because he holds the following positions with an affiliated person of the Trust: President, Chairman, Director and Chief Executive Officer of Loomis, Sayles & Company, L.P. and Director of Loomis Sayles Investment Asia Pte., Ltd.

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

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

| 64

Trustee and Officer Information


Name and Year of Birth	Position(s) Held with the Trust	Term of Office¹ and Length of Time Served	Principal Occupation(s) During Past 5 Years²

OFFICERS OF THE TRUST

Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

Daniel J. Fuss (1933) One Financial Center Boston, MA 02111	Executive Vice President	Since June 2003	Vice Chairman and Director, Loomis, Sayles & Company, L.P.

Russell L. Kane (1969)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Chief Compliance Officer since May 2006; Assistant Secretary since June 2004; and Anti-Money Laundering Officer since April 2007	Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, NGAM Distribution Corporation, NGAM Advisors, L.P. and NGAM Distribution, L.P.

Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, NGAM Advisors, L.P. and NGAM Distribution, L.P.

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

65 |

Item 2.

Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer and persons performing similar functions. There have been no amendments or waivers of the Registrant’s code of ethics during the period.

Item 3.

Audit Committee Financial Expert.

The Board of Trustees of the Registrant has established an audit committee. Mr. Kenneth A. Drucker, Mr. Wendell J. Knox, Mr. Erik R. Sirri and Ms. Cynthia L. Walker are members of the audit committee and have been designated as “audit committee financial experts” by the Board of Trustees. Each of these individuals is also an Independent Trustee of the Registrant.

Item 4.

Principal Accountant Fees and Services.

Fees billed by the Principal Accountant for services rendered to the Registrant.

The table below sets forth fees billed by the principal accountant, PricewaterhouseCoopers LLP, for the past two fiscal years for professional services rendered in connection with a) the audit of the Registrant’s annual financial statements and services provided in connection with regulatory filings; b) audit-related services (including services that are reasonably related to the performance of the audit of the Registrant’s financial statements and but not reported under “Audit Fees”); c) tax compliance, tax advice and tax planning and d) all other fees billed for professional services rendered by the principal accountant to the Registrant, other than the services reported as a part of (a) through (c) of this Item.


	Audit fees				Audit-related fees¹				Tax fees²				All other fees³
	10/1/11- 9/30/12		10/1/12- 9/30/13		10/1/11- 9/30/12		10/1/12- 9/30/13		10/1/11- 9/30/12		10/1/12- 9/30/13		10/1/11- 9/30/12		10/1/12- 9/30/13
Loomis Sayles Funds II	$	384,464	$	390,231	$	4,846	$	4,977	$	83,360	$	99,229	$	18,578	$	—

Audit-related fees consist of:

2012 & 2013 – performance of agreed-upon procedures related to the Registrant’s deferred compensation plan.

Tax fees consist of:

2012 & 2013 – review of Registrant’s tax returns, tax consulting services and review of liquidating fund distributions.

All other fees consist of:

2012 – filing and translation services with respect to Japanese shareholders in Loomis Sayles Investment Grade Bond Fund.

Aggregate fees billed to the Registrant for non-audit services during 2012 and 2013 were $106,784 and $104,206, respectively.

Fees billed by the Principal Accountant for services rendered to the Adviser and Control Affiliates.

The following table sets forth the fees billed by the Registrant’s principal accountant for non-audit services rendered to Loomis, Sayles & Company, L.P. and entities controlling, controlled by or under common control with Loomis, Sayles & Company, L.P. Registrant (“Control Affiliates”) that provide ongoing services to the Registrant, for engagements that related directly to the operations and financial reporting of the Registrant for the last two fiscal years.


	Audit-related fees				Tax fees				All other fees
	10/1/11- 9/30/12		10/1/12- 9/30/13		10/1/11- 9/30/12		10/1/12- 9/30/13		10/1/11- 9/30/12		10/1/12- 9/30/13
Control Affiliates	$	—	$	—	$	6,838	$	—	$	—	$	—

The following table sets forth the aggregate fees billed by the Registrant’s principal accountant for non-audit services rendered to Loomis, Sayles & Company, L.P. and Control Affiliates that provide ongoing services to the Registrant, for the last two fiscal years, including the fees disclosed in the table above.


	Aggregate Non-Audit Fees
	10/1/11- 9/30/12		10/1/12- 9/30/13
Control Affiliates	$	87,658	$	73,039

None of the services described above were approved pursuant to (c)(7)(i)(C) of Regulation S-X.

Audit Committee Pre Approval Policies.

Annually, the Registrant’s Audit Committee reviews the audit, audit-related, tax and other non-audit services together with the projected fees, for services proposed to be rendered to the Trust and/or other entities for which pre-approval is required during the upcoming year. Any subsequent revisions to already pre-approved services or fees (including fee increases) and requests for pre-approval of new services would be presented for consideration quarterly as needed.

If, in the opinion of management, a proposed engagement by the Registrant’s independent accountants needs to commence before the next regularly scheduled Audit Committee meeting, any member of the Audit Committee who is an independent Board member is authorized to pre-approve the engagement, but only for engagements to provide audit, audit related and tax services. This approval is subject to review of the full Audit Committee at its next quarterly meeting. All other engagements require the approval of all the members of the Audit Committee.

Item 5.

Audit Committee of Listed Registrants.

Not applicable.

Item 6.

Schedule of Investments.

Included as part of the Report to Shareholders filed as Item 1 herewith.

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8.

Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10.

Submission of Matters to a Vote of Securities Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11.

Controls and Procedures.

The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12.

Exhibits.


(a)(1)		Code of Ethics required by Item 2 hereof, filed herewith as Exhibit (a)(1).

(a)(2)		Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith as Exhibits (a)(2)(1) and (a)(2)(2), respectively.

(a)(3)		Not applicable.

(b)		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002 are filed herewith as Exhibit (b).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Loomis Sayles Funds II

By:		/s/ Robert J. Blanding
		Name: Robert J. Blanding
		Title: Chief Executive Officer
		Date: November 21, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


By:		/s/ Robert J. Blanding
		Name: Robert J. Blanding
		Title: Chief Executive Officer
		Date: November 21, 2013


By:		/s/ Michael C. Kardok
		Name: Michael C. Kardok
		Title: Treasurer
		Date: November 21, 2013

Non-income producing security.

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.