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)


888 Boylston Street, Suite 800 Boston, Massachusetts		02199-8197
(Address of principal executive offices)		(Zip code)

Russell L. Kane, Esq.

Natixis Distribution, L.P.

888 Boylston Street, Suite 800

Boston, Massachusetts 02199-8197

(Name and address of agent for service)

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

Date of fiscal year end: September 30

Date of reporting period: September 30, 2018

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:

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Annual Report

September 30, 2018

Loomis Sayles Global Allocation Fund

Loomis Sayles Growth Fund

Table of Contents



Portfolio Review			1

Portfolio of Investments			23

Financial Statements			45

Notes to Financial Statements			58

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LOOMIS SAYLES GLOBAL ALLOCATION FUND


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

Investment Goal

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

Market Conditions

Global equity markets experienced widely divergent results in the 12-month period ending September 30, 2018, reflecting the broad range of economic and political trends that influenced sentiment across the major regions.

In the United States, stocks surged and finished the period just short of an all-time high (as gauged by the S&P 500^® Index). US equities were boosted by the persistent strength of the US economy and associated increases in consumer, business and investor confidence. The improvement in growth also fed through to corporate profits, leading to better-than-expected results and prompting analysts to ramp up their estimates for future earnings. These developments outweighed concerns related to trade policy and ongoing interest rate increases by the US Federal Reserve, resulting in robust, broad-based gains for US equities. Growth stocks, especially those in the technology sector, were particularly strong performers. Conversely, value stocks lagged considerably amid reduced investor demand for defensive, dividend-paying companies.

The story was somewhat different overseas. The developed foreign markets came under pressure from early February onward as economic growth failed to meet the optimistic expectations that existed late in 2017. In addition, European equities faced the headwinds of tighter central bank policy and populist political movements. Emerging market stocks also weakened, largely because of protectionism in the United States and economic turmoil in countries such as Argentina and Turkey. The downturn in most foreign currencies against the US dollar also weighed on non-US equities.

Corporate credit spreads (the difference in yield between credit and Treasury securities of similar maturity) generally narrowed in the fourth quarter of 2017 on the back of solid economic numbers, stronger oil prices and the US Republican Party’s tax plan. However, spreads generally widened from January through the rest of the period, despite healthy profits and positive cyclical dynamics. Rising trade tensions, emerging market volatility and political instability in the euro zone periphery lowered investor confidence and likely contributed to reduced global demand for credit in the latter half of the year.

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US Treasury yields rose higher during the period and uncertainty outside of the United States resulted in a stronger US dollar and tighter global financial conditions, particularly in the second half of the period. Unsteady global risk appetite, tighter US monetary policy and capital inflows in the wake of rising volatility appear to have helped sustain the dollar rally.

Performance Results

For the 12 months ended September 30, 2018, Class Y shares of the Loomis Sayles Global Allocation Fund returned 9.49% at net asset value. The Fund underperformed its benchmark, the MSCI ACWI (Net), which returned 9.77%.

Explanation of Fund Performance

In equities, the three largest detractors were Dufry, NVR, and Julius Baer. Shares of Dufry underperformed over the period. Concerns around slower organic sales growth as compared to recent trends and top line growth weighed on stock performance. Further, concerns around volatility in emerging market currencies and the impact on traveler purchasing power also contributed to the stock’s weakness. Dufry rates highly across our quality criteria; it operates in a largely oligopolistic market structure that is well-positioned to benefit from global airline passenger growth. Its long tenured management team has smartly allocated capital, significantly increasing the company’s scale via acquisitions over the last decade. Today it has a highly diversified business model, geographically as well as by store concepts, with a mix of general shops, proprietary concepts (e.g., Hudson News) and branded boutiques (e.g., Coach). As a store operator, it is capital-lite, operating under medium-term contracts. We expect intrinsic value growth to be driven by revenues — passenger growth, square footage increases, bolt-on acquisitions, and growing initiatives such as its loyalty program — and margin expansion as it continues to leverage its scale. Using normalized earnings, the stock is attractively valued on our discounted cash flow methodology.

Shares of NVR, one of the largest home builders in the US, underperformed over the period. While revenue and earnings per share growth were healthy, the company reported lower growth rates in orders, which contributed to weakness in the shares. We believe the company has a healthy backlog and our long-term investment thesis remains intact. The company rates highly across our quality criteria. By focusing on home building rather than land development, the company has a unique asset-lite business model. It leverages purchase agreements to acquire pre-sold finished lots which significantly reduces its capital requirements. This model allowed the company to remain cash flow positive during the 2008 housing crisis. Its scale supports strong relationships with land developers and subcontractors as well as creates purchasing power. The company has a solid management team — the strength of which is demonstrated by the company’s cash flow generation and return on invested capital metrics. The CEO has been in place since 2005 and was previously the CFO for 12 years. Management also has meaningful company ownership, aligning its interests with shareholders. We expect intrinsic value to be driven by revenue growth, margin expansion, and capital allocation. A continued modest recovery in housing

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and favorable demographics provide further support to its business. Valuation is attractive based on our discounted cash flow methodology.

Shares of Julius Baer, a Swiss-based global wealth management company, have been weak over the period. Net interest income in the first half was disappointing, indicating that price competition for deposits may be heating up. Additionally, client transactions in Asia have been weak, reflecting client concerns around a potential trade war. Despite these short-term challenges, we are confident of the company’s quality and its strong organic growth potential, driven by continued inflows of new client assets and by bolt-on acquisitions.

Individual bond choices in the Communications sectors, in particular among select US cable and wireless companies failed to keep pace. Certain bonds held from the consumer Cyclical sectors, in particular among select automotive, retailers, and home construction, also detracted.

Allocation to emerging market currencies was negative as increased trade war rhetoric and heightened volatility dampened the risk appetite for emerging market assets. In particular, exposure to the Argentine peso, Brazilian real, South African rand, Mexican peso, and Indonesian rupiah detracted from results. Issuer selection among emerging market hard currency names, particularly those from Brazil and Argentina, detracted as emerging market assets were under pressure during the period and country vulnerabilities came into focus.

In equities, the top three individual contributors were Amazon, Sherwin-Williams, and UnitedHealth Group.

Amazon shares outperformed during the year as the company continues to deliver strong growth, led by Amazon Web Services, Subscription Services, and other revenues (primarily advertising). The composition of growth is becoming increasingly relevant for Amazon, as these segments will likely carry operating margins well above the company average. This mix effect, coupled with restrained growth in capital leases and headcount, has resulted in substantial profitability improvements in the last two quarters. We would also highlight Amazon’s planned acquisition of PillPack Pharmacy during the period — vaulting the e-Commerce giant into yet another attractive market. The company has a long history of identifying and disrupting large profit pools in established industries — either through organic or inorganic investment — and we believe that this acquisition could be a springboard for future expansion into the healthcare arena. While Amazon will bring immediate scale to the PillPack platform, the PillPack business could conversely help Amazon to grow its Prime membership base among older individuals, given that PillPack’s customer base skews to this demographic.

Sherwin-Williams performed well over the past year, demonstrating strong pricing power despite persistently rising raw material costs. Same store sales in the company’s core paint stores business steadily grew in the mid- to high single digits throughout the year and the company delivered solid gains in performance coatings. Performance also improved in the consumer brands segment, which struggled throughout 2017. Integration of the Valspar business continues apace, and the margin and revenue synergies from the acquisition are

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becoming increasingly meaningful. We believe the company is likely to continue to reduce debt through year-end, with an eye towards more balanced capital allocation in 2019.

Shares of UnitedHealth Group (UNH) rose steadily over the 12-month period. The company has continued its pattern of positive long-term execution of its business model. As the largest Managed Care Organization (MCO) with ~45 million members, UNH benefits from scale advantages, specifically greater underwriting experience and the ability to leverage non-medical costs. Via its Optum businesses, the company has accumulated valuable medical trend data over decades, providing insights which it leverages for its own MCO as well as external clients. UNH rates highly across our quality dimensions; the company has consistently returned cash to shareholders via its growing dividend and share buybacks. It has a strong track record of acquisitions, including Surgical Care Affiliates, Advisory Board, and DaVita Medical Group. We expect intrinsic value growth to be driven by organic top-line growth and modest margin expansion, as well as by continued share repurchases. UNH will also be a beneficiary of lower US tax rates. Valuation is attractive based on our discounted cash flow methodology.

In fixed income, corporate credit allocation was a positive source of returns during the period. Particularly helpful to performance were allocations to the consumer (cyclical and non-cyclical), banking, technology, communications, and energy sectors.

Allocations to high yield corporate issuers also contributed to positive performance. US high yield holdings lifted results as they generally outpaced higher grade names and proved among the more resilient fixed income segments during the period, aided by pockets of strength and the benefit of higher income to offset the effects of rising yields.

Holdings within the insurance sector and issuers from the supermarkets and healthcare sectors were additive. Energy issuers, in particular, US Independent and Midstream, also added value during the period.

Limited exposure to poor performing peripheral Eurozone country government bonds such as those from Italy was also positive.

Outlook

Continued positive corporate earnings reports and global growth provide broad support for equities. However, we expect recent volatility to continue, particularly as trade tensions show little sign of easing. The longer uncertainty persists around trade, the greater the risk that global growth decelerates. Companies may delay capital expenditures and hiring or preemptively make decisions regarding their supply chains — leaving a less efficient global supply chain, thus raising the cost of doing business. We also anticipate continued negative news flow surrounding the technology sector (e.g., data privacy, market concentration) which may pressure stocks; however we expect companies to continue to show resiliency over the long term. Whether it’s search, e-commerce or social media, these services remain highly desired by consumers. As such, we anticipate their share of digital advertising dollars will continue to grow. While new regulations may increase operating costs, we remain confident that our holdings’ business models will prove resilient.

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Renewed confidence in global growth, combined with credible monetary and fiscal policy measures, may help take pressure off emerging market and European risk assets. Disappointment, however, could prove disruptive.

Growth in China still looks set to slow moderately due to tighter financial regulations and environmental cleanup efforts. While we don’t expect a sharp rise in debt-financed fiscal initiatives by China as seen in the past, we do anticipate some modest easing of regulatory clamp-down efforts to help offset the growing downside risks to growth from US and Chinese tariffs.

Strong earnings have given global corporate credit investors confidence to stay the course, and we anticipate the vast majority of corporate industries will maintain stable credit fundamentals. A credit cycle is a cyclical pattern that follows credit availability, and corporate health behavior, such as accelerated mergers and acquisitions activity or an overly aggressive US Federal Reserve (Fed), could induce volatility. Euro investment grade credit should see stability, with reasonable valuations, healthy fundamentals and continued technical support from European Central Bank corporate buying. The UK remains hampered by the Brexit overhang, and we expect elements of contentious negotiations, both within the UK and with the EU, to be a market driver for the UK and possibly the broader European asset markets.

Valuations indicate the US dollar is expensive, but there appears to be no near-term cyclical catalyst to revert it toward fair value. Strong momentum in the US looks more likely to stick in the quarters ahead relative to the rest of the world. The Fed looks likely to stay on its current course, but we’re watching for more dovish signals that might suggest the rate hiking cycle is coming to an end sooner than anticipated. The Trump administration prefers a weaker dollar; a healthier growth and inflation trajectory in Europe and abroad may help in this regard, but only so long as China helps contain any renewed pressure on its currency.

To the extent that these events create shifts in sentiment and cause short-term volatility, they can also provide us with entry points to build long-term positions in high-quality companies and opportunities to trim or sell positions at what we consider attractive levels. Rather than try to predict macro events, we focus on companies with sustainable business models and a compelling valuation.

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Hypothetical Growth of $100,000 Investment in Class Y Shares⁴

September 30, 2008 through September 30, 2018

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See notes to chart on page 7.

Top Ten Holdings as of September 30, 2018


Security Name		% of net assets
1	Sherwin-Williams Co. (The)		3.15	%
2	Roper Technologies, Inc.		3.04
3	AIA Group Ltd.		2.79
4	Amazon.com, Inc.		2.68
5	Danaher Corp.		2.62
6	Alibaba Group Holding Ltd., Sponsored ADR		2.43
7	Marriott International, Inc., Class A		2.28
8	UnitedHealth Group, Inc.		2.23
9	Nestle S.A., (Registered)		2.23
10	Northrop Grumman Corp.		2.15

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

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Average Annual Total Returns — September 30, 2018⁴


													Expense Ratios⁵
	1 Year			5 Years			10 Years			Life of Class N			Gross			Net

Class Y (Inception 5/1/96)
NAV		9.49	%		8.48	%		10.36	%		—	%		0.93	%		0.93	%

Class A (Inception 2/1/06)
NAV		9.26			8.23			10.08			—			1.18			1.18
With 5.75% Maximum Sales Charge		2.97			6.96			9.43			—

Class C (Inception 2/1/06)
NAV		8.46			7.41			9.26			—			1.93			1.93
With CDSC¹		7.46			7.41			9.26			—

Class N (Inception 2/1/17)
NAV		9.60			—			—			13.85			0.87			0.87

Comparative Performance
MSCI ACWI (Net)²		9.77			8.67			8.19			14.48
Blended Index³		5.28			5.55			6.30			9.57

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

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

2	The MSCI All Country World Index (Net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.

The Blended Index is an unmanaged, blended index composed of the following weights: 60% MSCI All Country World Index (Net) and 40% Bloomberg Barclays Global Aggregate Bond Index. The Bloomberg Barclays Global Aggregate Bond Index provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities.

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

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense caps set to expire on 1/31/19. When a Fund’s expenses are below the cap, gross and net expense ratios will be the same. See Note 6 of the Notes to Financial Statements for more information about the Fund’s expense caps.

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LOOMIS SAYLES GROWTH FUND


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

Investment Goal

The Fund seeks long-term growth of capital.

Market Conditions

US equity markets surged during the 12-month period ending September 30, 2018, and finished just short of an all-time high (as gauged by the S&P 500^® Index). US equities were boosted by the persistent strength of the US economy and associated increases in consumer, business and investor confidence. The improvement in growth also fed through to corporate profits, leading to better-than-expected results and prompting analysts to ramp up their estimates for future earnings. These developments outweighed concerns related to trade policy and ongoing interest rate increases by the US Federal Reserve, resulting in robust, broad-based gains for US equities. Growth stocks, especially those in the technology sector, were particularly strong performers. Conversely, value stocks lagged considerably amid reduced investor demand for defensive, dividend-paying companies.

Performance Results

For the 12 months ended September 30, 2018, Class Y shares of Loomis Sayles Growth Fund returned 17.25% at net asset value. The Fund underperformed its benchmark, the Russell 1000^® Growth Index, which returned 26.30%.

Explanation of Fund Performance

We are an active manager with a long-term, private equity approach to investing. Through our proprietary bottom-up research framework, we look to invest in those few high-quality businesses with sustainable competitive advantages and profitable growth when they trade at a significant discount to intrinsic value. Given the rare confluence of quality, growth, and valuation, we may study dozens of companies but may only invest in a select few businesses each year. We believe identifying those few businesses with these characteristics is an art, not a science. As a result of this rigorous approach, ours is a selective, high-conviction portfolio of typically 30–40 names.

The Fund’s positions in Schlumberger, Cerner, and Yum China detracted the most from performance. Stock selection in the information technology, healthcare, consumer staples, energy, financials and industrials sectors, along with our allocations in the consumer staples, consumer discretionary, energy, healthcare and financials sectors, detracted from relative performance.

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Schlumberger is the world’s leading supplier of technology, equipment, integrated project management, and information solutions to the international oil and gas exploration and production industry. Over its 90-year history, Schlumberger has built a brand and reputation for delivering consistent service and product excellence across the spectrum of exploration, drilling, and production. Only a few companies can compete with the scope of Schlumberger’s integrated suite of products and services, and even fewer can compete with the scale and depth of its technology and service execution. The company reported global sales that rose 13% compared with the year-ago period, but stocks in the oil services sector came under pressure on short-term concerns around slowing activity in North America due to insufficient takeaway capacity in the Permian basin, as well as potential impacts on oil demand from trade disputes and emerging market weakness. In markets outside of North America, which have historically accounted for approximately 75% of revenue, the company continued to experience low demand growth for its services. Customer spending has lagged the rebound in oil prices as companies continue to repair their balance sheets following years of low prices. However, North America revenues grew over 50% during the period as the company redeployed idle capacity to accommodate growing drilling and well completion activity. While management has been prematurely optimistic about a recovery outside of the United States, based on contracts Schlumberger has already won, management indicated that international growth in 2019 would be in the double digits. Over a two-year period, which began in 2014 and saw industry spending fall by over 50%, Schlumberger gained share and maintained leading margins, while several competitors posted losses or very thin margins. Schlumberger was one of the few companies to generate positive free cash flow during the downturn, and continued to invest to strengthen its ability to offer integrated solutions to clients. Increasing consumption in emerging markets and the need to replace naturally depleting reservoirs creates long-term secular growth in the demand for oil and the need to extract hydrocarbons from harsher environments. Oilfield services like those Schlumberger provides are key to accessing difficult-to-reach resources. Thanks to its superior products and services and its competitive advantages, we believe Schlumberger is well positioned to weather the current environment and capitalize on the growth in oilfield services as market supply-demand normalizes.

Cerner is a leading supplier of healthcare information technology (HCIT) solutions. Connecting providers and patients at more than 27,000 facilities worldwide, Cerner offers mission-critical enterprise software for the clinical, financial, and operational needs of healthcare organizations of every size. Managed with long-term vision and a culture of research and development, Cerner is able to deliver innovative and relevant solutions for its clients, and its products are deeply embedded in client workflows. As a result, switching costs are high and client relationships can last for decades. Cerner reported financial results during the period that were fundamentally solid, but mixed from an expectations standpoint due in part to the timing of several large new contracts that were delayed but ultimately signed. The decision to purchase and integrate enterprise HCIT represents a critical decision for an organization which can last for over a decade. Given the size and scope of the contracts, the timing of new contracts can be difficult to predict. While volatile on a quarterly basis, new bookings rose approximately 15% over the prior-year period and included a large, ten-year contract with the Department of Veterans Affairs

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(VA) that could have a value of up to $10 billion and provides Cerner with greater revenue visibility. Over 25% of new bookings were from outside the company’s installed base of users, representing clients that are new to the company. Revenues grew in the mid-single digits year over year, while operating margins declined, in part due to growth investments. We expect margins will begin to expand again next year. Well positioned to capitalize on the secular increase in spending on HCIT, we believe that Cerner can grow revenue in the high single digits over our investment horizon, with faster growth in earnings and cash flow as the company improves margins and benefits from lower capital intensity.

Yum China is the largest restaurant company in China, operating over 8,100 restaurants primarily under the KFC and Pizza Hut brands. With its iconic brands, large and complex supply-chain infrastructure, decades of experience as a restaurant operator in China, and real estate procurement expertise, we believe Yum China is well positioned to benefit from the secular growth of consumer spending on restaurants in China. The company, a Fund holding since the fourth quarter of 2016 when it was spun off from existing Fund holding Yum! Brands, was among the top detractors for the period. After multiple quarters of strong growth at the company’s larger, more profitable KFC segment, the company reported that KFC segment growth slowed in the most recent quarter, and it continues to experience challenges in its Pizza Hut business, which has been in the midst of a multi-year recovery. Shares reacted negatively in September following unconfirmed reports that the company rejected an unsolicited acquisition proposal from a private investor group for $46 per share. The company has not acknowledged the rumors. Despite underperformance in recent results, we believe management has proven adept at identifying business weaknesses, and devising and executing credible strategies for improvement. The slowdown in sales at KFC was the first since the segment began a strong recovery two years ago following food safety concerns and slowing consumer spending. Pizza Hut in 2017 recorded its first full year of positive same-store sales growth since 2013, but the turnaround remains in progress. The company continues to have success with its loyalty programs and delivery initiatives, with delivery sales growing faster than total sales for both brands. The company’s loyalty programs grew to over 180 million members from approximately 100 million one year ago. Overall, we believe the long-term secular growth driver remains intact as food options such as Pizza Hut and KFC become increasingly affordable to an emerging middle class with rising levels of disposable income. We expect this demand will drive unit growth in China for both restaurant brands, as per capita penetration is much lower than in developed countries. We believe the company’s long-term opportunity for increased sales due to unit growth and consumer recovery, and the resulting improvement in margins and free cash flow, are not reflected in current market expectations. We believe the shares of all three detractors are selling at a significant discount to our estimate of intrinsic value and offer compelling reward-to-risk opportunities. During the period, we added to our holdings in each company as near-term price weakness increased the attractiveness of the reward-to-risk opportunity.

The Fund’s positions in Amazon, Visa, and Cisco Systems contributed the most to performance. Stock selection in the consumer discretionary sector, along with our

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allocations in the industrials and information technology (IT) sectors, contributed positively to relative performance.

Online retailer Amazon offers millions of products — sold by Amazon or by third parties — with the value proposition to consumers of selection, price, and convenience. Amazon’s enterprise IT business, Amazon Web Services (AWS), offers a suite of secure, on-demand cloud-computing services, with a value proposition to clients of speed, agility, and savings. In both of its core markets, Amazon possesses strong and sustainable competitive advantages that would be difficult to replicate. In e-commerce these include its brand, scale, network advantage, technology platform, and logistics and distribution systems. The AWS business benefits from its massive scale, which allows it to pass along cost savings while continuing to innovate. Amazon reported healthy fundamentals and strong growth in revenue during the period. With gross merchandise volume (GMV) growing, by our estimates, well above growth in the teens for US e-commerce and low single-digit growth in global retail sales, the company continued to take market share. AWS also posted impressive revenue growth, exceeding a $24 billion annual run rate, that was many multiples higher than our estimate of single-digit growth in overall enterprise IT spending. Under the thoughtful leadership of founder Jeff Bezos, Amazon continued rapid investment in key areas that capitalize on its strength, focusing on businesses with high, durable growth prospects and strong financial returns. With an increasing shift to higher-margin product categories such as third-party sales, AWS, and advertising, gross margins expanded during the period. Amazon is one of the best-positioned companies in e-commerce and enterprise IT — each addressing large, underpenetrated markets. The secular shift in consumer preference from traditional brick-and-mortar retail to online retail is the primary growth driver for Amazon, but both markets benefit from secular growth that is still in its early stages. We believe the current share price shows a lack of appreciation for Amazon’s significant long-term growth opportunities and the sustainability of its business model. We believe the shares are trading at a significant discount to our estimate of intrinsic value, offering a compelling reward-to-risk opportunity.

Visa is the largest payments technology company in the world, with a comprehensive offering of digital payment products including credit cards, debit cards — which Visa invented — and transaction security services known as tokenization. Visa has one of the world’s most recognized brands, which took decades and significant investment to build. Through its open-loop, multi-party system, Visa has built a massive global network, orchestrating transaction settlements between merchants, merchants’ banks, card-issuer banks and cardholders in more than 200 countries. A global network with 3.3 billion Visa-branded cards outstanding that are accepted by over 46 million merchants worldwide creates a powerful virtuous cycle, reinforcing Visa’s difficult-to-replicate competitive advantages. During the period, Visa reported revenue and earnings that were strong and above market expectations. Payment dollar volume growth in the low double digits benefited from stronger global growth, but was well above the growth in the approximately $45 trillion of global personal consumer expenditures, demonstrating the strength of the long-term secular shift from cash to electronic payments. We estimate Visa can generate

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double-digit cash flow growth over our forecast period. As the company continues to scale its businesses in regions around the world, we expect it will be able to increase cash flow growth, expand margins, and improve its return on invested capital. We believe the shares are trading at a significant discount to our estimate of intrinsic value, offering a compelling reward-to-risk opportunity.

Cisco designs, manufactures, and markets internet networking equipment, primarily at the high end of the market. We believe Cisco’s scale, end-to-end architecture solutions, and large installed customer base uniquely position the company to benefit from exponential growth in internet traffic, which will require a corresponding exponential increase in bandwidth capacity. Cisco returned to positive year-over-year revenue growth and finished its 2018 fiscal year with record quarterly revenues and earnings per share (EPS). Cisco is transitioning its business to a software and product subscription model, where a portion of revenue that was previously recognized up front is now earned as recurring revenue over time, which creates a near-term revenue headwind. However, over the long run, we believe the subscription model contributes to a higher customer lifetime value and will improve the overall quality of the business by increasing the visibility of future revenue streams, lowering cyclicality, and raising profitability. New innovation is enabling Cisco to expand product recurring revenue beyond its smaller collaboration, wireless, and security businesses and into its core networking products. In its large campus switching business, where Cisco is the market leader, Cisco had previously been unable to drive growth because it lacked the innovation needed to spark an upgrade cycle. However, a unique automation feature in the company’s next-generation Catalyst 9000 series switching product reduces customer operating expenses — which represent the lion’s share of IT department operating budgets — and creates an economic incentive to upgrade. That product, announced in mid-2017, has become Cisco’s fastest-growing product innovation in history, with almost 10,000 new customers — most of which are opting for the highest-level subscription services. Another attraction of the subscription model is that it allows customers to more easily adopt future functionality and innovations, making it less likely that customers will base their decisions solely on the price of competing hardware options. Cisco expects to extend this model to other core products, which we believe will contribute to recurring revenue within the product segment growing from approximately 12% today to approximately 40% over our investment time horizon. Total recurring revenue accounted for approximately 32% of total company revenue, which we believe can exceed 50% over the next decade. Leading with its unique end-to-end architecture, including differentiated cloud-enabled hardware and software solutions, Cisco is well positioned to benefit from the ever increasing demand for internet bandwidth capability. We believe the shares are selling at a discount to our estimate of intrinsic value and offer an attractive reward-to-risk opportunity.

All aspects of our quality-growth-valuation investment thesis must be present simultaneously for us to make an investment. Often our research is completed well in advance of the opportunity to invest. We are patient investors and maintain coverage of high-quality businesses in order to take advantage of meaningful price dislocations if and when they occur. During the period, we initiated new positions in Starbucks and

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Colgate-Palmolive. We added to our existing holdings in Oracle, Schlumberger, Regeneron Pharmaceuticals, Cerner, Procter & Gamble and Yum China. We trimmed our existing positions in Varian Medical Systems, Cisco, United Parcel Service, and American Express. We also trimmed our positions in Alibaba and Amazon as they approached our maximum allowable position size. We sold our position in Analog Devices as it approached our estimate of intrinsic value.

Outlook

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

Hypothetical Growth of $100,000 Investment in Class Y Shares³

September 30, 2008 through September 30, 2018

LOGO

See notes to chart on page 15.

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Top Ten Holdings as of September 30, 2018


Security Name		% of net assets
1	Amazon.com, Inc.		7.71	%
2	Visa, Inc., Class A		5.97
3	Oracle Corp.		5.16
4	Facebook, Inc., Class A		4.93
5	Alibaba Group Holding Ltd., Sponsored ADR		4.65
6	Autodesk, Inc.		4.52
7	Microsoft Corp.		3.60
8	Regeneron Pharmaceuticals, Inc.		3.55
9	Monster Beverage Corp.		3.55
10	QUALCOMM, Inc.		3.35

| 14

LOOMIS SAYLES GROWTH FUND

Average Annual Total Returns — September 30, 2018³


													Expense Ratios⁴
	1 Year			5 Years			10 Years			Life of Class N			Gross			Net

Class Y (Inception 5/16/91)
NAV		17.25	%		16.10	%		13.34	%		—	%		0.66	%		0.66	%

Class A (Inception 12/31/96)
NAV		16.98			15.82			13.01			—			0.91			0.91
With 5.75% Maximum Sales Charge		10.23			14.47			12.34			—

Class C (Inception 9/12/03)
NAV		16.09			14.95			12.18			—			1.66			1.66
With CDSC¹		15.09			14.95			12.18			—

Class N (Inception 2/1/13)
NAV		17.40			16.14			—			16.61			0.58			0.58

Comparative Performance
Russell 1000^® Growth Index²		26.30			16.58			14.31			17.35

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

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

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

15 |

ADDITIONAL INFORMATION

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

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

ADDITIONAL INDEX INFORMATION

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

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

PROXY VOTING INFORMATION

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

QUARTERLY PORTFOLIO SCHEDULES

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

| 16

UNDERSTANDING FUND EXPENSES

As a mutual fund shareholder, you incur different types of costs: transaction costs, including sales charges (loads) on purchases and contingent deferred sales charges on redemptions; and ongoing costs, including management fees, distribution and/or service fees (12b-1 fees), and other fund expenses. Certain exemptions may apply. These costs are described in more detail in the 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 for each class of Fund shares shows the actual account values and actual fund expenses you would have paid on a $1,000 investment in the Fund from April 1, 2018 through September 30, 2018. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, $8,600 account value divided by $1,000 = 8.6) and multiply the result by the number in the Expenses Paid During Period row as shown below for your class.

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

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

17 |


LOOMIS SAYLES GLOBAL ALLOCATION FUND	BEGINNING ACCOUNT VALUE 4/1/2018		ENDING ACCOUNT VALUE 9/30/2018		EXPENSES PAID DURING PERIOD* 4/1/2018 – 9/30/2018
Class A
Actual		$1,000.00		$1,029.40		$5.90
Hypothetical (5% return before expenses)		$1,000.00		$1,019.25		$5.87
Class C
Actual		$1,000.00		$1,025.70		$9.70
Hypothetical (5% return before expenses)		$1,000.00		$1,015.49		$9.65
Class N
Actual		$1,000.00		$1,031.00		$4.23
Hypothetical (5% return before expenses)		$1,000.00		$1,020.91		$4.20
Class Y
Actual		$1,000.00		$1,030.60		$4.63
Hypothetical (5% return before expenses)		$1,000.00		$1,020.51		$4.61

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.16%, 1.91%, 0.83% and 0.91% 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).


LOOMIS SAYLES GROWTH FUND	BEGINNING ACCOUNT VALUE 4/1/2018		ENDING ACCOUNT VALUE 9/30/2018		EXPENSES PAID DURING PERIOD* 4/1/2018 – 9/30/2018
Class A
Actual		$1,000.00		$1,095.60		$4.78
Hypothetical (5% return before expenses)		$1,000.00		$1,020.51		$4.61
Class C
Actual		$1,000.00		$1,091.40		$8.70
Hypothetical (5% return before expenses)		$1,000.00		$1,016.75		$8.39
Class N
Actual		$1,000.00		$1,098.00		$3.00
Hypothetical (5% return before expenses)		$1,000.00		$1,022.21		$2.89
Class Y
Actual		$1,000.00		$1,097.30		$3.47
Hypothetical (5% return before expenses)		$1,000.00		$1,021.76		$3.35

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.91%, 1.66%, 0.57% and 0.66% 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).

| 18

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

The Board of Trustees of the Trust (the “Board”), including the Independent Trustees, considers matters bearing on each Fund’s advisory agreement (collectively, the “Agreements”) at most of its meetings throughout the year. Each year, usually in the spring, the Contract Review Committee of the Board meets to review the Agreements to determine whether to recommend that the full Board approve the continuation of the Agreements, typically for an additional one-year period. After the Contract Review 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’ advisory fees to the fees charged to institutional accounts with similar strategies managed by the Adviser, if any, and to those of peer groups of funds and information about any applicable expense caps and/or fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Adviser and (v) information obtained through the completion by the Adviser of a questionnaire distributed on behalf of the Trustees. The Board, including the Independent Trustees, also considers other matters such as (i) the Adviser’s financial results and financial condition, (ii) each Fund’s investment objective and strategies and the size, education and experience of the Adviser’s investment staff and its use of technology, external research and trading cost measurement tools, (iii) arrangements in respect of the distribution of the Funds’ shares and the related costs, (iv) the allocation of the Funds’ brokerage, if any, including, to the extent applicable, the use of “soft” commission dollars to pay for research and other similar services, (v) 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, (vi) each Adviser’s policies and procedures relating to, among other things, compliance, trading and best execution, proxy voting and valuation, (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 expense differentials against each Fund’s peer group/category of

19 |

funds, performance ratings provided by a third-party, total return information for various periods, and third-party performance rankings for various periods comparing a Fund against similarly categorized funds. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review Committee and/or the full Board, and Funds identified as presenting possible performance concerns may be subject to more frequent Board or Committee 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 for a one-year period at its meeting held in June 2018. In considering whether to approve the continuation of the Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

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

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

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

Investment performance of the Funds and the Adviser. As noted above, the Trustees received information about the performance of the Funds over various time periods, including information 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 reviewed data prepared by an independent third party that analyzed the performance of the Funds using a variety of performance metrics, including metrics that measured the performance of the Funds on a risk adjusted basis.

The Board noted that, through December 31, 2017, each Fund’s one-, three- and five-year performance, stated as percentile rankings within categories selected by the independent third-party data provider, was as follows (where the best performance would be in the first percentile of its category):


	One-Year			Three-Year			Five-Year
Loomis Sayles Global Allocation Fund		2	%		1	%		6	%
Loomis Sayles Growth Fund		24	%		3	%		5	%

| 20

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

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

The costs of the services to be provided and profits to be realized by the Adviser and its affiliates from their respective relationships with the Funds. The Trustees considered the fees charged to the Funds for advisory and administrative services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Adviser to comparable accounts (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets and the greater regulatory costs associated with the management of such assets. In evaluating each Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund and the need for the Adviser to offer competitive compensation and the potential need to expend additional resources to the extent the 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 all of the Funds included have expense caps in place, and the Trustees considered that the current expenses of each Fund were below its cap. The Trustees also noted that the total advisory fee rates for the Funds were at or below the medians of their respective 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 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 Funds, the expense levels of the Funds, whether the Adviser had implemented breakpoints and/or expense caps with respect to such Funds and the overall profit margin of Natixis Investment Managers compared to that of certain other investment managers for which such data was available.

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

21 |

each of the Funds was fair and reasonable, and that the costs of these services generally and the related profitability of the Adviser and its affiliates in respect of their relationships with the Funds supported the renewal of the Agreements.

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense 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 Global Allocation Fund had breakpoints in its advisory fee and that all of the Funds were 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 on 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.

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

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

Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that each of the existing Agreements should be continued through June 30, 2019.

| 22

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund


Shares		Description	Value (†)
	Common Stocks — 66.2% of Net Assets
		Canada — 1.6%
	609,200	CGI Group, Inc., Class A(a)	$	39,278,579

		China — 2.4%
	359,704	Alibaba Group Holding Ltd., Sponsored ADR(a)		59,264,831

		France — 1.6%
	284,260	Thales S.A.		40,387,889

		Hong Kong — 2.8%
	7,638,800	AIA Group Ltd.		68,114,525

		India — 0.7%
	634,450	HDFC Bank Ltd.		17,524,813

		Japan — 1.1%
	519,987	Nomura Research Institute Ltd.		26,258,307

		Sweden — 2.0%
	1,085,734	Assa Abloy AB		21,762,323
	932,874	Atlas Copco AB, Class A		26,827,751

				48,590,074

		Switzerland — 6.5%
	238,849	Dufry AG, (Registered)		26,986,029
	26,470	Geberit AG, (Registered)		12,285,830
	481,683	Julius Baer Group Ltd.		24,072,640
	654,593	Nestle S.A., (Registered)		54,486,063
	249,570	Temenos AG, (Registered)		40,648,074

				158,478,636

		United Kingdom — 4.6%
	1,320,288	Halma PLC		24,856,883
	11,482,864	Legal & General Group PLC		39,200,122
	496,011	London Stock Exchange Group PLC		29,639,992
	192,434	Reckitt Benckiser Group PLC		17,578,845

				111,275,842

		United States — 42.9%
	217,171	Accenture PLC, Class A		36,962,504
	21,729	Alphabet, Inc., Class C(a)		25,932,910
	42,205	Alphabet, Inc., Class A(a)		50,944,811
	32,661	Amazon.com, Inc.(a)		65,419,983
	4,058	Arconic, Inc.		89,317
	9,032	Booking Holdings, Inc.(a)		17,919,488
	595,150	CBRE Group, Inc., Class A(a)		26,246,115
	490	Cincinnati Bell, Inc.(a)		7,816
	590,116	Danaher Corp.		64,122,005
	670	Dex Media, Inc.(a)(b)		7,035
	207,954	EOG Resources, Inc.		26,528,692
	222,799	Facebook, Inc., Class A(a)		36,641,524
	174,352	Goldman Sachs Group, Inc. (The)		39,096,692
	543,099	Intercontinental Exchange, Inc.		40,672,684

See accompanying notes to financial statements.

23 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Shares		Description	Value (†)
		United States — continued
	292,063	LyondellBasell Industries NV, Class A	$	29,939,378
	221,239	M&T Bank Corp.		36,402,665
	422,846	Marriott International, Inc., Class A		55,828,357
	300,905	McCormick & Co., Inc.		39,644,234
	53,766	Mettler-Toledo International, Inc.(a)		32,742,419
	165,443	Northrop Grumman Corp.		52,506,645
	7,626	NVR, Inc.(a)		18,842,321
	157,681	Parker Hannifin Corp.		29,002,266
	250,529	Roper Technologies, Inc.		74,209,195
	197,860	S&P Global, Inc.		38,659,865
	169,319	Sherwin-Williams Co. (The)		77,075,702
	368,575	Texas Instruments, Inc.		39,544,412
	160,120	Travelers Cos., Inc. (The)		20,769,165
	74,657	Tyler Technologies, Inc.(a)		18,295,444
	205,236	UnitedHealth Group, Inc.		54,600,985

				1,048,654,629

		Total Common Stocks (Identified Cost $1,190,734,121)		1,617,828,125


Principal Amount (‡)
	Bonds and Notes — 23.7%
	Non-Convertible Bonds — 23.2%
		Argentina — 0.2%
$	775,000	Provincia de Buenos Aires, 9.125%, 3/16/2024, 144A		718,750
	535,000	Republic of Argentina, 6.875%, 4/22/2021		510,925
	2,460,000	Republic of Argentina, 7.125%, 6/28/2117		1,912,650
	1,390,000	Republic of Argentina, 7.625%, 4/22/2046		1,127,304
	355,000	YPF S.A., 8.750%, 4/04/2024, 144A		353,935
	17,745,000	YPF S.A., 16.500%, 5/09/2022, 144A, (ARS)		268,023

				4,891,587

		Australia — 0.2%
	1,675,000	Australia Government Bond, Series 133, 5.500%, 4/21/2023, (AUD)(c)		1,380,488
	1,150,000	Commonwealth Bank of Australia, 2.250%, 3/10/2020, 144A(c)		1,135,284
	670,000	GAIF Bond Issuer Pty Ltd., 3.400%, 9/30/2026, 144A(c)		621,385
	110,000	Incitec Pivot Finance LLC, 6.000%, 12/10/2019, 144A		112,826
	935,000	National Australia Bank, 2.500%, 1/12/2021(c)		916,010
	95,000	Sydney Airport Finance Co. Pty Ltd., 3.375%, 4/30/2025, 144A		90,429

				4,256,422

		Belgium — 0.1%
	1,040,000	Anheuser-Busch InBev Finance, Inc., 3.650%, 2/01/2026		1,010,564
	440,000	Solvay Finance (America) LLC, 3.400%, 12/03/2020, 144A		439,547

				1,450,111

		Brazil — 0.6%
	800,000	Braskem Finance Ltd., 5.750%, 4/15/2021, 144A		821,400
	8,500(††)	Brazil Notas do Tesouro Nacional, Series F, 10.000%, 1/01/2025, (BRL)		1,984,195

See accompanying notes to financial statements.

| 24

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Brazil — continued
	2,250(††)	Brazil Notas do Tesouro Nacional, Series F, 10.000%, 1/01/2019, (BRL)	$	561,347
	8,815(††)	Brazil Notas do Tesouro Nacional, Series F, 10.000%, 1/01/2021, (BRL)		2,205,319
	2,300(††)	Brazil Notas do Tesouro Nacional, Series F, 10.000%, 1/01/2027, (BRL)		523,123
	1,085,000	Brazilian Government International Bond, 4.625%, 1/13/2028		993,328
	1,000,000	CIMPOR Financial Operations BV, 5.750%, 7/17/2024, 144A		705,010
	400,000	Cosan Luxembourg S.A., 5.000%, 3/14/2023, 144A		382,000
	1,100,000	Embraer Netherlands Finance BV, 5.050%, 6/15/2025(c)		1,104,136
	1,045,000	Klabin Finance S.A., 5.250%, 7/16/2024		1,010,933
	1,140,000	Petrobras Global Finance BV, 4.375%, 5/20/2023		1,082,772
	2,685,000	Petrobras Global Finance BV, 5.999%, 1/27/2028		2,476,913
	300,000	Petrobras Global Finance BV, 6.875%, 1/20/2040		278,775
	575,000	Raizen Fuels Finance S.A., 5.300%, 1/20/2027, 144A		540,500
	500,000	Tupy Overseas S.A., 6.625%, 7/17/2024, 144A		506,255

				15,176,006

		Canada — 2.7%
	447,260	Air Canada Pass Through Trust, Series 2015-2, Class A, 4.125%, 6/15/2029, 144A(c)		444,106
	895,000	Air Canada Pass Through Trust, Series 2017-1, Class AA, 3.300%, 7/15/2031, 144A(c)		850,966
	1,010,000	Antares Holdings LP, 6.000%, 8/15/2023, 144A		1,013,975
	815,000	Bank of Montreal, 1.750%, 6/15/2021, 144A(c)		783,525
	3,000,000	BMW Canada Auto Trust, Series 2017-1A, Class A2, 1.677%, 5/20/2020, 144A, (CAD)(c)		2,313,971
	12,965,000	Canadian Government Bond, 0.500%, 3/01/2022, (CAD)(c)		9,455,371
	25,500,000	Canadian Government Bond, 0.750%, 3/01/2021, (CAD)(c)		19,056,544
	15,925,000	Canadian Government International Bond, 1.750%, 9/01/2019, (CAD)(c)		12,297,875
	970,000	Canadian Imperial Bank of Commerce, 1.600%, 9/06/2019(c)		958,977
	800,000	CPPIB Capital, Inc., 0.375%, 6/20/2024, 144A, (EUR)(c)		924,698
	430,000	Enbridge, Inc., 2.900%, 7/15/2022		417,079
	905,000	Export Development Canada, 1.800%, 9/01/2022, (CAD)(c)		681,758
	1,335,000	Institutional Mortgage Securities Canada, Inc., Series 2014-5A, Class A2, 2.616%, 7/12/2047, 144A, (CAD)(c)		1,023,733
	6,165,000	Province of Ontario Canada, 1.250%, 6/17/2019(c)		6,100,238
	7,200,000	Province of Ontario Canada, 1.875%, 5/21/2020(c)		7,068,096
	1,690,000	Tornoto-Dominion Bank (The), Series GMTN, 3.500%, 7/19/2023(c)		1,686,868

				65,077,780

		Chile — 0.5%
	815,000,000	Bonos de la Tesoreria de la Republica de Chile, 4.500%, 3/01/2026, (CLP)(c)		1,239,513
	1,250,000	Corp. Nacional del Cobre de Chile, 3.625%, 8/01/2027, 144A(c)		1,195,288
	1,700,000	Corp. Nacional del Cobre de Chile, 4.500%, 9/16/2025(c)		1,725,755
	1,160,000	Corp. Nacional del Cobre de Chile, 4.500%, 9/16/2025, 144A(c)		1,177,574
	525,000	Enel Chile S.A., 4.875%, 6/12/2028		529,673
	250,000	Engie Energia Chile S.A., 5.625%, 1/15/2021, 144A		259,166
	800,000	Inversiones CMPC S.A., 4.375%, 5/15/2023, 144A(c)		799,906
	240,000	Latam Airlines Group S.A., 7.250%, 6/09/2020, 144A		245,119

See accompanying notes to financial statements.

25 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Chile — continued
$	748,651	Latam Airlines Pass Through Trust, Series 2015-1, Class A, 4.200%, 8/15/2029	$	720,576
	473,492	Latam Airlines Pass Through Trust, Series 2015-1, Class B, 4.500%, 8/15/2025		458,104
	950,000	Latam Finance Ltd., 6.875%, 4/11/2024, 144A		922,688
	935,000	Republic of Chile, 3.240%, 2/06/2028(c)		895,730
	1,120,000	Transelec S.A., 4.250%, 1/14/2025, 144A(c)		1,108,800

				11,277,892

		China — 0.3%
	920,000	Alibaba Group Holding Ltd., 3.400%, 12/06/2027(c)		857,527
	795,000	Baidu, Inc., 3.875%, 9/29/2023		787,360
	400,000	China Resources Gas Group Ltd., 4.500%, 4/05/2022, 144A(c)		403,925
	835,000	Country Garden Holdings Co. Ltd., 7.500%, 3/09/2020		850,141
	905,000	Industrial & Commercial Bank of China Ltd., 2.957%, 11/08/2022(c)		872,076
	890,000	Longfor Group Holdings Ltd., 3.900%, 4/16/2023		843,285
	985,000	Sinopec Group Overseas Development 2017 Ltd., 2.375%, 4/12/2020, 144A(c)		968,777
	500,000	Tencent Holdings Ltd., 2.985%, 1/19/2023, 144A(c)		484,271
	1,820,000	Three Gorges Finance I Cayman Islands Ltd., 3.150%, 6/02/2026(c)		1,697,641
	900,000	Yingde Gases Investment Ltd., 6.250%, 1/19/2023		868,730

				8,633,733

		Colombia — 0.2%
	435,000,000	Emgesa S.A. E.S.P., 8.750%, 1/25/2021, (COP)		153,721
	830,000,000	Emgesa S.A. E.S.P., 8.750%, 1/25/2021, 144A, (COP)		293,307
	2,140,000,000	Empresas Publicas de Medellin E.S.P., 8.375%, 2/01/2021, 144A, (COP)(c)		726,788
	575,000	Republic of Colombia, 3.875%, 4/25/2027		557,750
	200,000,000	Republic of Colombia, 7.750%, 4/14/2021, (COP)		70,717
	6,150,000,000	Titulos De Tesoreria, Series B, 7.500%, 8/26/2026, (COP)(c)		2,176,045

				3,978,328

		Denmark — 0.0%
	670,000	Danske Bank AS, 3.875%, 9/12/2023, 144A		656,221

		Dominican Republic — 0.1%
	1,410,000	Dominican Republic, 5.500%, 1/27/2025, 144A		1,415,287
	590,000	Dominican Republic, 5.950%, 1/25/2027, 144A		602,355
	995,000	Dominican Republic, 6.000%, 7/19/2028, 144A		1,014,462
	425,000	Dominican Republic, 8.625%, 4/20/2027, 144A		483,438

				3,515,542

		France — 0.5%
	970,000	Air Liquide Finance S.A., 1.375%, 9/27/2019, 144A(c)		955,673
	200,000	AXA S.A., 7.125%, 12/15/2020, (GBP)		289,966
	205,000	BNP Paribas S.A., 4.375%, 5/12/2026, 144A		199,618
	1,415,000	Caisse d’Amortissement de la Dette Sociale, 1.875%, 2/12/2022(c)		1,357,049
	250,000	Credit Agricole S.A., 4.125%, 1/10/2027, 144A		241,899
	390,000	Credit Agricole S.A., (fixed rate to 6/23/2026, variable rate thereafter), 7.500%, (GBP)(d)		560,424

See accompanying notes to financial statements.

| 26

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		France — continued
$	735,000	Danone S.A., 1.691%, 10/30/2019, 144A(c)	$	724,176
	500,000	Dexia Credit Local S.A., 2.250%, 2/18/2020, 144A(c)		494,662
	1,215,000	Electricite de France S.A., 4.500%, 9/21/2028, 144A		1,196,856
	1,100,000	Electricite de France SA, (fixed rate to 1/29/2026, variable rate thereafter), 6.000%, (GBP)(d)		1,462,415
	1,730,000	French Republic Government Bond OAT, 4.250%, 10/25/2023, (EUR)(c)		2,436,634
	1,015,000	Societe Generale S.A., 4.750%, 11/24/2025, 144A(c)		1,006,077
	475,000	Societe Generale S.A., (fixed rate to 4/07/2021, variable rate thereafter), 6.750%, (EUR)(d)		594,251

				11,519,700

		Germany — 0.2%
	500,000	Allianz SE, (fixed rate to 7/07/2025, variable rate thereafter), 2.241%, 7/07/2045, (EUR)(c)		580,351
	865,000	Bayer U.S. Finance II LLC, 4.250%, 12/15/2025, 144A		859,684
	285,000	Bayer U.S. Finance II LLC, 4.375%, 12/15/2028, 144A		279,228
	235,000	Commerzbank AG, EMTN, 4.000%, 3/23/2026, (EUR)		293,930
	675,000	Daimler Finance North America LLC, 1.750%, 10/30/2019, 144A(c)		665,208
	100,000	Deutsche Bank AG, EMTN, 4.500%, 5/19/2026, (EUR)		124,482
	380,000	Deutsche Telekom International Finance BV, 2.820%, 1/19/2022, 144A		371,001
	1,150,000	Deutsche Telekom International Finance BV, 4.375%, 6/21/2028, 144A		1,146,462

				4,320,346

		Hong Kong — 0.1%
	355,000	AIA Group Ltd., 3.200%, 3/11/2025, 144A(c)		337,501
	1,135,000	AIA Group Ltd., 3.900%, 4/06/2028, 144A		1,112,746

				1,450,247

		India — 0.1%
	650,000	Greenko Dutch BV, 5.250%, 7/24/2024, 144A		605,742
	1,630,000	ICICI Bank Ltd., 3.800%, 12/14/2027		1,464,584

				2,070,326

		Indonesia — 0.4%
	875,000	Chandra Asri Petrochemical Tbk PT, 4.950%, 11/08/2024		764,522
	35,310,000,000	Indonesia Government International Bond, 8.250%, 7/15/2021, (IDR)		2,397,367
	300,000	Indonesia Government International Bond, 4.125%, 1/15/2025, 144A		295,071
	735,000	Indonesia Government International Bond, 4.750%, 1/08/2026		745,065
	34,000,000,000	Indonesia Government International Bond, 7.000%, 5/15/2022, (IDR)		2,228,195
	3,500,000,000	Indonesia Government International Bond, 9.500%, 7/15/2023, (IDR)		245,236
	781,000,000	Indonesia Government International Bond, 11.500%, 9/15/2019, (IDR)		54,294
	14,000,000,000	Indonesia Treasury Bond, 8.375%, 3/15/2024, (IDR)(c)		946,079
	795,000	Perusahaan Listrik Negara PT, 5.250%, 10/24/2042, 144A		745,153
	1,475,000	Perusahaan Listrik Negara PT, MTN, 4.125%, 5/15/2027		1,381,716
	545,000	Republic of Indonesia, 2.875%, 7/08/2021, 144A, (EUR)		668,398
	525,000	Republic of Indonesia, 4.750%, 1/08/2026, 144A		533,033

				11,004,129

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Ireland — 0.1%
$	475,000	AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 4.500%, 5/15/2021	$	482,371
	1,250,000	Bank of Ireland Group PLC, 4.500%, 11/25/2023, 144A		1,247,885

				1,730,256

		Israel — 0.1%
	510,000	Teva Pharmaceutical Finance Co. LLC, 6.150%, 2/01/2036		511,801
	780,000	Teva Pharmaceutical Finance Netherlands II B.V., 0.375%, 7/25/2020, (EUR)		890,006

				1,401,807

		Italy — 0.6%
	500,000	Assicurazioni Generali S.p.A., EMTN, 4.125%, 5/04/2026, (EUR)		598,057
	665,000	Enel Finance International NV, 1.375%, 6/01/2026, (EUR)		751,761
	1,250,000	Enel Finance International NV, 2.875%, 5/25/2022, 144A		1,188,918
	210,000	Enel Finance International NV, EMTN, 1.125%, 9/16/2026, (EUR)		230,792
	425,000	Intesa Sanpaolo SpA, 5.710%, 1/15/2026, 144A		386,618
	530,000	Intesa Sanpaolo SpA, EMTN, 3.928%, 9/15/2026, (EUR)		615,673
	3,305,000	Italy Buoni Poliennali Del Tesoro, 2.000%, 2/01/2028, (EUR)		3,539,461
	4,255,000	Italy Buoni Poliennali Del Tesoro, 5.000%, 3/01/2022, (EUR)		5,433,388
	1,775,000	Telecom Italia Capital S.A., 6.000%, 9/30/2034		1,690,688
	430,000	UniCredit SpA, (fixed rate to 6/19/2027, variable rate thereafter), 5.861%, 6/19/2032, 144A		384,377

				14,819,733

		Japan — 0.0%
	1,165,000	Nomura Holdings, Inc., GMTN, 2.750%, 3/19/2019(c)		1,165,444

		Korea — 0.4%
	765,000	Export-Import Bank of Korea, 3.000%, 11/01/2022(c)		744,817
	125,000,000	Export-Import Bank of Korea, MTN, 6.750%, 8/09/2022, (INR)(c)		1,647,463
	1,100,000	Hyundai Capital Services, Inc., 3.750%, 3/05/2023, 144A		1,086,165
	1,575,000	Kia Motors Corp., 3.000%, 4/25/2023, 144A		1,498,936
	630,000	Korea Development Bank (The), MTN, 4.500%, 11/22/2019, (AUD)(c)		463,194
	910,000	Korea Gas Corp., 2.750%, 7/20/2022, 144A(c)		877,295
	670,000	KT Corp., 2.500%, 7/18/2026, 144A(c)		595,763
	1,125,000	Minera y Metalurgica del Boleo S.A. de CV, 2.875%, 5/07/2019, 144A(c)		1,121,348
	1,440,000,000	Republic of Korea, Series 2209, 2.000%, 9/10/2022, (KRW)(c)		1,291,366
	770,000	Shinhan Bank Co. Ltd., 3.875%, 3/24/2026, 144A(c)		729,839
	140,000	SK Telecom Co. Ltd., 6.625%, 7/20/2027, 144A(c)		164,220
	200,000	Woori Bank, 5.875%, 4/13/2021, 144A(c)		208,384

				10,428,790

		Mexico — 0.4%
	620,000	Alfa SAB de CV, 6.875%, 3/25/2044		638,600
	770,000	America Movil SAB de CV, 2.125%, 3/10/2028, (EUR)(c)		919,948
	10,000,000	America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)(c)		489,799
	675,000	Banco Nacional de Comercio Exterior SNC, (fixed rate to 8/11/2021, variable rate thereafter), 3.800%, 8/11/2026, 144A		658,132
	1,150,000	Cemex Finance LLC, 6.000%, 4/01/2024, 144A		1,184,534

See accompanying notes to financial statements.

| 28

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Mexico — continued
	1,055,000	Cemex SAB de CV, 2.750%, 12/05/2024, 144A, (EUR)	$	1,221,650
	800,000	Gruma SAB de CV, 4.875%, 12/01/2024(c)		819,080
	10,000,000	Grupo Televisa SAB, EMTN, 7.250%, 5/14/2043, (MXN)(c)		378,465
	142,000(†††)	Mexican Fixed Rate Bonds, Series M, 5.750%, 3/05/2026, (MXN)		669,253
	190,229(†††)	Mexican Fixed Rate Bonds, Series M, 6.500%, 6/10/2021, (MXN)(c)		985,483
	196,000	Mexico Government International Bond, 4.000%, 3/15/2115, (EUR)(c)		209,342
	1,020,000	Mexico Government International Bond, 4.125%, 1/21/2026(c)		1,010,871
	100,000	Sigma Alimentos S.A. de CV, 2.625%, 2/07/2024, 144A, (EUR)		120,670
	835,000	Sigma Alimentos, S.A. de C.V, 4.125%, 5/02/2026		801,183
	1,010,000	Unifin Financiera SAB de CV SOFOM ENR, 7.250%, 9/27/2023		997,385

				11,104,395

		Netherlands — 0.1%
	870,000	Cooperatieve Rabobank UA, 4.375%, 8/04/2025(c)		860,343
	675,000	ING Bank NV, 1.650%, 8/15/2019, 144A(c)		667,593
	1,105,000	Ziggo BV, 5.500%, 1/15/2027, 144A		1,036,766

				2,564,702

		Norway — 0.2%
	17,000,000	City of Oslo, Norway, 3.550%, 2/12/2021, (NOK)(c)		2,177,554
	550,000	Kommunalbanken AS, 1.750%, 9/15/2020, 144A(c)		537,378
	13,760,000	Norway Government Bond, 4.500%, 5/22/2019, 144A, (NOK)(c)		1,730,259
	3,815,000	Norway Government Bond, Series 475, 2.000%, 5/24/2023, 144A, (NOK)(c)		478,407

				4,923,598

		Panama — 0.0%
	680,000	Banco Latinoamericano de Comercio Exterior S.A., 3.250%, 5/07/2020, 144A(c)		674,166

		Paraguay — 0.1%
	800,000	Republic of Paraguay, 5.000%, 4/15/2026, 144A		811,000
	572,000	Telefonica Celular del Paraguay S.A., 6.750%, 12/13/2022		583,806

				1,394,806

		Peru — 0.1%
	580,000	Southern Copper Corp., 3.875%, 4/23/2025(c)		564,203
	1,050,000	Transportadora de Gas del Peru S.A., 4.250%, 4/30/2028, 144A(c)		1,030,313
	1,050,000	Union Andina de Cementos SAA, 5.875%, 10/30/2021, 144A		1,074,937

				2,669,453

		Poland — 0.1%
	5,380,000	Republic of Poland Government Bond, Series 0726, 2.500%, 7/25/2026, (PLN)(c)		1,396,512

		Portugal — 0.0%
	400,000	EDP Finance BV, 4.125%, 1/15/2020, 144A		402,032

		Senegal — 0.0%
	625,000	Republic of Senegal, 4.750%, 3/13/2028, 144A, (EUR)		700,694

		Singapore — 0.2%
	785,000	BOC Aviation Ltd., 2.750%, 9/18/2022, 144A		745,066
	495,000	BOC Aviation Ltd., 3.000%, 3/30/2020(c)		489,765

See accompanying notes to financial statements.

29 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Singapore — (continued)
$	345,000	DBS Group Holdings Ltd., (fixed rate to 12/11/2023, variable rate thereafter), 4.520%, 12/11/2028, 144A	$	349,192
	3,215,000	United Overseas Bank Ltd., 3.200%, 4/23/2021, 144A(c)		3,193,877

				4,777,900

		South Africa — 0.3%
	930,000	MTN (Mauritius) Investments Ltd., 4.755%, 11/11/2024, 144A		841,120
	500,000	Myriad International Holdings BV, 6.000%, 7/18/2020, 144A		519,135
	113,940,000	South Africa Government International Bond, Series R213, 7.000%, 2/28/2031, (ZAR)(c)		6,606,163

				7,966,418

		Spain — 0.3%
	400,000	Banco Santander S.A., 3.125%, 2/23/2023		379,625
	700,000	Gas Natural Fenosa Finance BV, EMTN, 1.500%, 1/29/2028, (EUR)		794,597
	100,000	Iberdrola International BV, EMTN, 0.375%, 9/15/2025, (EUR)		110,374
	725,000	Spain Government International Bond, 0.750%, 7/30/2021, (EUR)(c)		858,597
	430,000	Spain Government International Bond, 1.600%, 4/30/2025, 144A, (EUR)(c)		521,677
	760,000	Spain Government International Bond, 4.300%, 10/31/2019, 144A, (EUR)(c)		926,342
	2,565,000	Spain Government International Bond, 4.400%, 10/31/2023, 144A, (EUR)(c)		3,541,731

				7,132,943

		Supranationals — 0.1%
	1,115,000	Corporacion Andina de Fomento, 4.375%, 6/15/2022(c)		1,144,035
	1,140,000	International Bank for Reconstruction & Development, 2.500%, 3/12/2020, (AUD)(c)		827,386
	70,000,000	International Finance Corp., Series GDIF, MTN, 7.800%, 6/03/2019, (INR)(c)		963,816

				2,935,237

		Sweden — 0.0%
	2,450,000	Sweden Government Bond, 5.000%, 12/01/2020, (SEK)(c)		308,432

		Switzerland — 0.1%
	1,075,000	Glencore Finance Canada Ltd., 5.550%, 10/25/2042, 144A(c)		1,060,498
	900,000	Syngenta Finance NV, EMTN, 1.250%, 9/10/2027, (EUR)		913,625

				1,974,123

		Thailand — 0.2%
	1,570,000	Kasikornbank PCL, EMTN, 3.256%, 7/12/2023		1,513,522
	1,010,000	Siam Commercial Bank PCL, 3.500%, 4/07/2019, 144A(c)		1,009,805
	85,000,000	Thailand Government Bond, 2.125%, 12/17/2026, (THB)		2,524,482
	950,000	Thaioil Treasury Center Co. Ltd., 3.625%, 1/23/2023, 144A		927,076

				5,974,885

		Trinidad — 0.0%
	415,000	Trinidad Generation UnLtd., 5.250%, 11/04/2027, 144A		402,031

		Turkey — 0.1%
	1,775,000	Turkey Government International Bond, 6.125%, 10/24/2028		1,602,186

See accompanying notes to financial statements.

| 30

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United Arab Emirates — 0.2%
$	1,610,000	Abu Dhabi Crude Oil Pipeline LLC, 3.650%, 11/02/2029(c)	$	1,525,861
	1,275,000	DP World Crescent Ltd., 4.848%, 9/26/2028, 144A		1,257,482
	850,000	DP World Ltd., 3.250%, 5/18/2020, 144A(c)		843,540
	200,000	DP World Ltd., MTN, 3.250%, 5/18/2020		198,480

				3,825,363

		United Kingdom — 0.4%
	95,000	Avon Products, Inc., 8.950%, 3/15/2043		85,025
	585,000	BP Capital Markets PLC, 3.216%, 11/28/2023(c)		573,932
	445,000	FCE Bank PLC, EMTN, 1.615%, 5/11/2023, (EUR)		517,421
	300,000	HSBC Holdings PLC, 4.375%, 11/23/2026(c)		294,855
	565,000	HSBC Holdings PLC, (fixed rate to 6/01/2021, variable rate thereafter), 6.875%(d)		584,775
	295,000	HSBC Holdings PLC, EMTN, 5.750%, 12/20/2027, (GBP)(c)		451,247
	150,000	Imperial Brands Finance PLC, EMTN, 6.250%, 12/04/2018, (GBP)		197,168
	635,000	Lloyds Banking Group PLC, 4.050%, 8/16/2023		630,817
	400,000	Lloyds Banking Group PLC, 4.500%, 11/04/2024(c)		392,911
	1,020,000	Lloyds Banking Group PLC, (fixed rate to 6/27/2024, variable rate thereafter), 7.500%(d)		1,051,875
	1,130,000	Royal Bank of Scotland Group PLC, 6.000%, 12/19/2023(c)		1,175,561
	950,000	Royal Bank of Scotland Group PLC, (fixed rate to 8/10/2020, variable rate thereafter), 7.500%(d)		971,099
	350,000	Santander UK Group Holdings PLC, 4.750%, 9/15/2025, 144A(c)		341,151
	250,000	Standard Chartered PLC, EMTN, 3.125%, 11/19/2024, (EUR)		308,679
	500,000	United Kingdom Gilt, 1.750%, 7/22/2019, (GBP)		656,653
	130,000	Virgin Media Finance PLC, 4.500%, 1/15/2025, 144A, (EUR)		154,321
	115,000	Virgin Media Secured Finance PLC, 4.875%, 1/15/2027, (GBP)		147,334
	1,660,000	Vodafone Group PLC, 4.375%, 5/30/2028		1,635,477

				10,170,301

		United States — 12.9%
	15,000	21st Century Fox America, Inc., 6.400%, 12/15/2035		19,117
	9,890,000	AbbVie, Inc., 2.500%, 5/14/2020		9,779,161
	1,745,000	AES Corp. (The), 4.875%, 5/15/2023		1,760,269
	480,000	Allison Transmission, Inc., 4.750%, 10/01/2027, 144A		453,000
	8,000,000	Ally Financial, Inc., 4.125%, 2/13/2022		7,990,000
	745,000	Ally Financial, Inc., 5.125%, 9/30/2024		767,350
	129,000	Ally Financial, Inc., 8.000%, 12/31/2018		130,290
	1,728,000	Ally Financial, Inc., 8.000%, 11/01/2031		2,093,040
	149,955	American Airlines Pass Through Certificates, Series 2013-1, Class A, 4.000%, 1/15/2027		149,129
	2,140,427	American Airlines Pass Through Certificates, Series 2016-1, Class B, 5.250%, 7/15/2025		2,206,099
	1,672,664	American Airlines Pass Through Certificates, Series 2016-3, Class B, 3.750%, 4/15/2027		1,614,756
	630,000	American Airlines Pass Through Certificates, Series 2017-2, Class B, 3.700%, 4/15/2027		607,760
	487,013	American Airlines Pass Through Certificates, Series 2017-1B, Class B, 4.950%, 8/15/2026		490,519

See accompanying notes to financial statements.

31 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	6,190,000	Anadarko Petroleum Corp., 3.450%, 7/15/2024	$	5,958,593
	300,000	Anadarko Petroleum Corp., 4.500%, 7/15/2044		274,779
	400,000	Antero Resources Corp., 5.125%, 12/01/2022		406,200
	175,000	Antero Resources Corp., 5.375%, 11/01/2021		177,240
	3,060,000	Antero Resources Corp., 5.625%, 6/01/2023		3,132,675
	260,000	Aptiv PLC, 1.600%, 9/15/2028, (EUR)		287,372
	1,510,000	AT&T, Inc., 3.400%, 5/15/2025		1,437,624
	3,960,000	AT&T, Inc., 4.300%, 2/15/2030, 144A		3,808,321
	925,000	Aviation Capital Group LLC, 6.750%, 4/06/2021, 144A		989,072
	200,000	Bank of America Corp., 5.490%, 3/15/2019		202,468
	2,700,000	Bank of America Corp., 6.110%, 1/29/2037		3,105,134
	115,000	Bank of America Corp., MTN, 4.250%, 10/22/2026		113,682
	3,000	Beazer Homes USA, Inc., 7.250%, 2/01/2023		2,955
	71,000	California Resources Corp., 5.500%, 9/15/2021		65,398
	10,000	California Resources Corp., 6.000%, 11/15/2024		8,500
	1,870,000	California Resources Corp., 8.000%, 12/15/2022, 144A		1,785,850
	60,000	CenturyLink, Inc., 5.625%, 4/01/2025		58,668
	55,000	CenturyLink, Inc., Series G, 6.875%, 1/15/2028		52,806
	370,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		330,225
	880,000	CenturyLink, Inc., Series S, 6.450%, 6/15/2021		913,000
	34,000	Chemours Co. (The), 6.625%, 5/15/2023		35,516
	3,210,000	Chesapeake Energy Corp., 4.875%, 4/15/2022		3,117,712
	315,000	Chesapeake Energy Corp., 5.750%, 3/15/2023		306,731
	495,000	Chesapeake Energy Corp., 6.125%, 2/15/2021		507,375
	190,000	Chesapeake Energy Corp., 6.625%, 8/15/2020		198,550
	95,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		99,513
	3,232,000	Chesapeake Energy Corp., 8.000%, 12/15/2022, 144A		3,377,440
	4,700,000	Chesapeake Energy Corp., 8.000%, 6/15/2027		4,794,000
	780,000	Chevron Corp., 2.419%, 11/17/2020(c)		770,654
	1,635,000	Cimarex Energy Co., 4.375%, 6/01/2024		1,649,139
	525,000	Cincinnati Bell, Inc., 7.000%, 7/15/2024, 144A		481,687
	450,000	Cincinnati Bell, Inc., 8.000%, 10/15/2025, 144A		419,625
	500,000	Citizens Financial Group, Inc., 4.300%, 12/03/2025		493,016
	2,913,000	Clear Channel Worldwide Holdings, Inc., Series B, 7.625%, 3/15/2020		2,920,282
	390,000	Consolidated Communications, Inc., 6.500%, 10/01/2022		368,550
	265,000	Constellation Brands, Inc., 4.750%, 11/15/2024		274,370
	485,000	Continental Resources, Inc., 3.800%, 6/01/2024		475,621
	640,000	Continental Resources, Inc., 4.500%, 4/15/2023		651,265
	92,000	Continental Resources, Inc., 5.000%, 9/15/2022		93,334
	375,000	Cox Communications, Inc., 4.800%, 2/01/2035, 144A		350,004
	395,000	CSC Holdings LLC, 5.375%, 2/01/2028, 144A		376,238
	155,000	Cummins, Inc., 5.650%, 3/01/2098		165,222
	475,000	Dell International LLC/EMC Corp., 6.020%, 6/15/2026, 144A		507,695
	113,552	Delta Air Lines Pass Through Trust, Series 2007-1, Class B, 8.021%, 2/10/2024(e)		124,748
	1,200,000	Devon Energy Corp., 3.250%, 5/15/2022		1,178,914
	50,000	Dillard’s, Inc., 7.000%, 12/01/2028		52,439

See accompanying notes to financial statements.

| 32

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	8,000	Dillard’s, Inc., 7.750%, 7/15/2026	$	8,832
	1,680,000	DISH DBS Corp., 5.000%, 3/15/2023		1,524,600
	1,495,000	DISH DBS Corp., 5.875%, 11/15/2024		1,339,894
	310,000	DR Horton, Inc., 4.375%, 9/15/2022		314,199
	340,000	Enable Midstream Partners LP, 5.000%, 5/15/2044		306,051
	235,000	Enbridge Energy Partners LP, 7.375%, 10/15/2045		310,573
	1,075,000	Energy Transfer Partners LP/Regency Energy Finance Corp., 5.000%, 10/01/2022		1,113,352
	600,000	EnLink Midstream Partners LP, 4.150%, 6/01/2025		568,928
	1,310,000	Federal National Mortgage Association, Series 2017-M14, Class A2, 2.974%, 11/25/2027(c)(f)		1,236,399
	410,000	FedEx Corp., 1.000%, 1/11/2023, (EUR)		485,056
	80,000	Foot Locker, Inc., 8.500%, 1/15/2022		90,200
	40,000	Ford Motor Co., 4.346%, 12/08/2026		37,646
	685,000	Ford Motor Co., 5.291%, 12/08/2046		610,101
	25,000	Ford Motor Co., 6.375%, 2/01/2029		25,856
	50,000	Ford Motor Co., 6.625%, 2/15/2028		52,787
	2,105,000	Ford Motor Co., 6.625%, 10/01/2028		2,221,116
	5,000	Ford Motor Co., 7.500%, 8/01/2026		5,673
	5,000,000	Ford Motor Credit Co. LLC, 2.459%, 3/27/2020		4,916,013
	770,000	Ford Motor Credit Co. LLC, 3.470%, 4/05/2021		760,600
	1,600,000	Ford Motor Credit Co. LLC, 3.588%, 6/02/2020, (AUD)(c)		1,166,495
	865,000	Frontier Communications Corp., 6.875%, 1/15/2025		525,773
	560,000	Frontier Communications Corp., 11.000%, 9/15/2025		436,638
	131,000	Gates Global LLC/Gates Global Co., 6.000%, 7/15/2022, 144A		131,819
	50,000	General Electric Co., GMTN, 3.100%, 1/09/2023		48,966
	740,000	General Electric Co., Series D, (fixed rate to 1/21/2021, variable rate thereafter), 5.000%(c)(d)		720,945
	310,000	General Motors Co., 5.200%, 4/01/2045		281,620
	240,000	General Motors Financial Co., Inc., 3.450%, 4/10/2022		236,043
	925,000	General Motors Financial Co., Inc., 5.250%, 3/01/2026		947,862
	100,000	General Motors Financial Co., Inc., EMTN, 0.955%, 9/07/2023, (EUR)		113,703
	3,435,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		4,285,082
	105,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		125,439
	180,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		236,616
	315,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		457,956
	905,000	Global Atlantic Fin Co., 8.625%, 4/15/2021, 144A		1,000,821
	2,295,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		2,760,782
	1,935,000	Goodyear Tire & Rubber Co. (The), 4.875%, 3/15/2027		1,777,781
	165,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		171,600
	4,627	GS Mortgage Securities Trust, Series 2007-GG10, Class AM, 5.977%, 8/10/2045(f)		4,688
	1,000,000	HCA Healthcare, Inc., 6.250%, 2/15/2021		1,042,500
	20,000	HCA, Inc., 4.750%, 5/01/2023		20,350
	6,670,000	HCA, Inc., 5.375%, 9/01/2026		6,736,700
	225,000	HCA, Inc., 7.050%, 12/01/2027		241,313
	820,000	HCA, Inc., 7.500%, 11/06/2033		888,782

See accompanying notes to financial statements.

33 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	395,000	HCA, Inc., 8.360%, 4/15/2024	$	449,312
	195,000	HCA, Inc., MTN, 7.580%, 9/15/2025		216,938
	75,000	HCA, Inc., MTN, 7.750%, 7/15/2036		81,750
	855,000	Hecla Mining Co., 6.875%, 5/01/2021		857,137
	490,000	Hewlett Packard Enterprise Co., 6.350%, 10/15/2045		503,539
	310,000	Hexion, Inc., 7.875%, 2/15/2023(g)(h)		248,000
	485,000	Huntington Ingalls Industries, Inc., 5.000%, 11/15/2025, 144A		502,363
	1,585,000	Hyundai Capital America, 2.750%, 9/27/2026, 144A(c)		1,387,794
	450,000	International Lease Finance Corp., 4.625%, 4/15/2021		459,116
	1,250,000	International Lease Finance Corp., 6.250%, 5/15/2019		1,274,313
	745,000	INVISTA Finance LLC, 4.250%, 10/15/2019, 144A		744,069
	2,233,000	iStar, Inc., 5.000%, 7/01/2019		2,236,740
	48,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		19,200
	5,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		1,900
	1,070,000	Jefferies Group LLC, 6.250%, 1/15/2036		1,082,282
	7,760,000	Jeld-Wen, Inc., 4.625%, 12/15/2025, 144A		7,158,600
	15,000	K. Hovnanian Enterprises, Inc., 5.000%, 11/01/2021		13,401
	1,665,000	KB Home, 8.000%, 3/15/2020		1,760,904
	330,000	Level 3 Financing, Inc., 5.125%, 5/01/2023		331,650
	760,000	Level 3 Financing, Inc., 5.375%, 5/01/2025		758,092
	140,000	Level 3 Parent LLC, 5.750%, 12/01/2022		141,603
	20,000	Macy’s Retail Holdings, Inc., 4.500%, 12/15/2034		16,437
	44,000	Masco Corp., 6.500%, 8/15/2032		48,225
	403,000	Masco Corp., 7.750%, 8/01/2029		478,027
	254,000	Micron Technology, Inc., 5.500%, 2/01/2025		262,666
	1,430,000	Midas Intermediate Holdco II LLC/Midas Intermediate Holdco II Finance, Inc., 7.875%, 10/01/2022, 144A		1,265,550
	220,000	Morgan Stanley, 2.500%, 1/24/2019		219,875
	450,000	Morgan Stanley, 3.950%, 4/23/2027		431,916
	725,000	Morgan Stanley, 5.750%, 1/25/2021		762,059
	3,150,000	Morgan Stanley, MTN, 4.100%, 5/22/2023		3,169,500
	600,000	Morgan Stanley, MTN, 6.250%, 8/09/2026		674,482
	25,000	MPLX LP, 4.500%, 7/15/2023		25,632
	95,000	MPLX LP, 4.875%, 6/01/2025		98,110
	3,890,000	Nationstar Mortgage Holdings, Inc., 9.125%, 7/15/2026, 144A		4,074,775
	3,000,000	Navient Corp., 5.000%, 10/26/2020		3,036,930
	95,000	Navient Corp., 5.875%, 10/25/2024		93,100
	1,600(††††)	Navient Corp., 6.000%, 12/15/2043		35,577
	935,000	Navient Corp., 6.750%, 6/15/2026		923,312
	750,000	Navient Corp., MTN, 6.125%, 3/25/2024		750,000
	915,000	Navient LLC, 5.500%, 1/25/2023		912,712
	60,000	Navient LLC, MTN, 5.500%, 1/15/2019		60,300
	415,000	Navient LLC, MTN, 7.250%, 1/25/2022		437,825
	3,418,000	Navient LLC, Series A, MTN, 5.625%, 8/01/2033		2,862,575
	4,583,000	New Albertsons LP, 7.450%, 8/01/2029		3,780,975
	525,000	New Albertsons LP, 7.750%, 6/15/2026		457,926
	5,540,000	New Albertsons LP, 8.000%, 5/01/2031		4,709,000

See accompanying notes to financial statements.

| 34

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	2,150,000	New Albertsons LP, 8.700%, 5/01/2030	$	1,897,375
	1,309,000	New Albertsons LP, Series C, MTN, 6.625%, 6/01/2028		991,567
	365,000	Newell Brands, Inc., 4.000%, 12/01/2024		352,831
	65,000	Newfield Exploration Co., 5.625%, 7/01/2024		68,494
	900,000	NGL Energy Partners LP/NGL Energy Finance Corp., 6.125%, 3/01/2025		843,750
	55,000	NGL Energy Partners LP/NGL Energy Finance Corp., 6.875%, 10/15/2021		56,029
	405,000	NGL Energy Partners LP/NGL Energy Finance Corp., 7.500%, 11/01/2023		405,000
	20,000	NGPL PipeCo LLC, 7.768%, 12/15/2037, 144A		24,500
	540,000	Nissan Motor Acceptance Corp., 2.000%, 3/08/2019, 144A(c)		538,234
	1,765,000	Nissan Motor Acceptance Corp., 3.650%, 9/21/2021, 144A		1,769,462
��	120,000	Oasis Petroleum, Inc., 6.875%, 1/15/2023		122,100
	2,275,000	Oceaneering International, Inc., 4.650%, 11/15/2024		2,206,659
	420,000	Old Republic International Corp., 4.875%, 10/01/2024		432,106
	3,693,000	ONEOK Partners LP, 4.900%, 3/15/2025		3,833,169
	25,000	ONEOK Partners LP, 6.200%, 9/15/2043		28,019
	55,000	Outfront Media Capital LLC/Outfront Media Capital Corp., 5.250%, 2/15/2022		55,688
	140,000	Outfront Media Capital LLC/Outfront Media Capital Corp., 5.875%, 3/15/2025		141,400
	310,000	Owens Corning, 7.000%, 12/01/2036		353,192
	2,965,000	Owens-Brockway Glass Container, Inc., 5.375%, 1/15/2025, 144A		2,935,350
	585,000	Prologis LP, 2.250%, 6/30/2029, (GBP)		714,117
	540,000	PulteGroup, Inc., 6.000%, 2/15/2035		508,950
	785,000	PulteGroup, Inc., 6.375%, 5/15/2033		753,686
	220,000	PulteGroup, Inc., 7.875%, 6/15/2032		236,775
	285,000	QEP Resources, Inc., 5.250%, 5/01/2023		277,519
	210,000	QEP Resources, Inc., 5.375%, 10/01/2022		210,788
	135,000	Quicken Loans, Inc., 5.250%, 1/15/2028, 144A		125,381
	120,000	Quicken Loans, Inc., 5.750%, 5/01/2025, 144A		119,850
	1,335,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,339,272
	650,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		602,745
	400,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		413,496
	45,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		41,794
	476,000	Qwest Corp., 6.875%, 9/15/2033		473,358
	115,000	Qwest Corp., 7.250%, 9/15/2025		124,067
	540,000	Radian Group, Inc., 4.500%, 10/01/2024		530,550
	230,000	Range Resources Corp., 4.875%, 5/15/2025		217,638
	850,000	Range Resources Corp., 5.000%, 8/15/2022		840,437
	220,000	Range Resources Corp., 5.000%, 3/15/2023		215,600
	970,000	Santander Holdings USA, Inc., 2.650%, 4/17/2020(c)		957,526
	25,000	Sealed Air Corp., 4.875%, 12/01/2022, 144A		25,250
	640,000	Sealed Air Corp., 5.500%, 9/15/2025, 144A		649,600
	420,000	ServiceMaster Co. LLC (The), 7.450%, 8/15/2027		441,525
	140,000	Silgan Holdings, Inc., 3.250%, 3/15/2025, (EUR)		167,601
	2,495,000	Springleaf Finance Corp., 5.250%, 12/15/2019		2,529,306
	1,170,000	Springleaf Finance Corp., 5.625%, 3/15/2023		1,165,612
	860,000	Springleaf Finance Corp., 6.875%, 3/15/2025		857,850

See accompanying notes to financial statements.

35 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	2,310,000	Springleaf Finance Corp., 7.125%, 3/15/2026	$	2,298,450
	330,000	Springleaf Finance Corp., 7.750%, 10/01/2021		355,981
	130,000	Springleaf Finance Corp., 8.250%, 10/01/2023		143,325
	2,349,000	Sprint Capital Corp., 6.875%, 11/15/2028		2,360,745
	2,240,000	Sprint Capital Corp., 8.750%, 3/15/2032		2,520,000
	1,720,000	Sprint Communications, Inc., 6.000%, 11/15/2022		1,754,400
	120,000	Sprint Corp., 7.125%, 6/15/2024		124,500
	2,840,000	Sprint Corp., 7.875%, 9/15/2023		3,063,650
	1,365,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 6.750%, 3/15/2024		1,440,075
	840,000	Tenet Healthcare Corp., 5.125%, 5/01/2025		827,400
	100,000	Tenet Healthcare Corp., 6.750%, 6/15/2023		99,625
	1,405,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		1,257,756
	820,000	Textron, Inc., 5.950%, 9/21/2021		864,095
	90,000	Time Warner Cable LLC, 4.500%, 9/15/2042		76,805
	85,000	Time Warner Cable LLC, 5.500%, 9/01/2041		81,870
	1,680,000	Transcontinental Gas Pipe Line Co. LLC, 7.850%, 2/01/2026		2,046,395
	171,000	TransDigm, Inc., 6.500%, 7/15/2024		175,190
	185,000	TransDigm, Inc., 6.500%, 5/15/2025		188,469
	6,665,000	TRI Pointe Group, Inc., 4.875%, 7/01/2021		6,665,000
	90,000	TRI Pointe Group, Inc./TRI Pointe Homes, Inc., 4.375%, 6/15/2019		90,450
	5,000	TRI Pointe Group, Inc./TRI Pointe Homes, Inc., 5.875%, 6/15/2024		4,963
	656,000	TRU Taj LLC/TRU Taj Finance, Inc., 11.000%, 1/22/2019, 144A		671,875
	9,434,874	U.S. Treasury Inflation Indexed Note, 0.125%, 4/15/2022(c)(i)		9,166,324
	4,069,290	U.S. Treasury Inflation Indexed Note, 0.375%, 7/15/2027(c)(i)		3,887,444
	2,655,000	U.S. Treasury Note, 0.875%, 6/15/2019(c)		2,624,509
	4,615,000	U.S. Treasury Note, 1.375%, 4/30/2020(c)		4,514,948
	18,115,000	U.S. Treasury Note, 1.500%, 11/30/2019(c)		17,866,626
	3,460,000	U.S. Treasury Note, 1.750%, 11/30/2021(c)		3,340,252
	8,530,000	U.S. Treasury Note, 2.500%, 6/30/2020(c)		8,486,017
	6,555,000	U.S. Treasury Note, 2.750%, 5/31/2023(c)		6,500,972
	15,150,000	U.S. Treasury Note, 2.750%, 2/28/2025(c)		14,930,443
	6,605,000	U.S. Treasury Note, 2.875%, 5/15/2028(c)		6,505,409
	406,800	United Airlines Pass Through Trust, Series 2016-2, Class B, 3.650%, 4/07/2027		390,031
	2,940,000	United Rentals North America, Inc., 5.500%, 7/15/2025		2,998,800
	2,635,000	United Rentals North America, Inc., 5.750%, 11/15/2024		2,710,888
	1,940,000	United States Steel Corp., 6.650%, 6/01/2037		1,733,875
	690,000	United States Steel Corp., 7.375%, 4/01/2020		721,912
	96,787	US Airways Pass Through Trust, Series 2012-1A, Class A, 5.900%, 4/01/2026		103,562
	50,057	US Airways Pass Through Trust, Series 2012-1B, Class B, 8.000%, 4/01/2021		52,185
	363,393	US Airways Pass Through Trust, Series 2012-2A, Class A, 4.625%, 12/03/2026		371,501
	25,000	Viacom, Inc., 4.375%, 3/15/2043		21,818
	395,000	Viacom, Inc., 5.250%, 4/01/2044		384,735

See accompanying notes to financial statements.

| 36

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		United States — continued
$	145,000	Viacom, Inc., 5.850%, 9/01/2043	$	153,407
	1,150,000	Walmart, Inc., 3.700%, 6/26/2028		1,150,310
	60,000	Weyerhaeuser Co., 6.950%, 10/01/2027		70,353
	315,000	Weyerhaeuser Co., 7.375%, 3/15/2032		398,402
	525,000	Whiting Petroleum Corp., 5.750%, 3/15/2021		538,125
	195,000	Whiting Petroleum Corp., 6.250%, 4/01/2023		201,854
	3,052,000	Windstream Services LLC/Windstream Finance Corp., 9.000%, 6/30/2025, 144A		2,357,670
	65,000	Windstream Services LLC/Windstream Finance Corp., 10.500%, 6/30/2024, 144A		55,250

				316,008,890

		Uruguay — 0.0%
	17,410,000	Republic of Uruguay, 9.875%, 6/20/2022, 144A, (UYU)		519,291

		Total Non-Convertible Bonds (Identified Cost $568,318,213)		568,252,758


	Convertible Bonds — 0.5%
		United States — 0.5%
	1,450,000	Booking Holdings, Inc., 0.900%, 9/15/2021		1,720,350
	105,000	CalAmp Corp., 1.625%, 5/15/2020		110,215
	60,000	Chesapeake Energy Corp., 5.500%, 9/15/2026		59,265
	545,000	DISH Network Corp., 2.375%, 3/15/2024		483,052
	2,290,000	DISH Network Corp., 3.375%, 8/15/2026		2,184,124
	290,000	Evolent Health, Inc., 2.000%, 12/01/2021		389,562
	1,855,000	iStar, Inc., 3.125%, 9/15/2022, 144A		1,803,312
	855,000	KB Home, 1.375%, 2/01/2019		867,679
	2,020,000	Nuance Communications, Inc., 1.000%, 12/15/2035		1,906,536
	240,000	Nuance Communications, Inc., 1.250%, 4/01/2025		247,867
	10,000	Nuance Communications, Inc., 1.500%, 11/01/2035		10,132
	1,660,000	Rovi Corp., 0.500%, 3/01/2020		1,565,563
	40,000	RPM International, Inc., 2.250%, 12/15/2020		49,248
	380,000	SM Energy Co., 1.500%, 7/01/2021		415,945
	250,000	Western Digital Corp., 1.500%, 2/01/2024, 144A		231,343

		Total Convertible Bonds (Identified Cost $11,603,824)		12,044,193


	Municipals — 0.0%
		United States — 0.0%
	155,000	State of Illinois, 5.100%, 6/01/2033		148,761
	130,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046		128,869

		Total Municipals (Identified Cost $253,900)		277,630


		Total Bonds and Notes (Identified Cost $580,175,937)		580,574,581

See accompanying notes to financial statements.

37 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


Shares		Description	Value (†)
	Preferred Stocks — 0.1%
		United States — 0.1%
	460	Chesapeake Energy Corp., 5.000%	$	28,350
	40	Chesapeake Energy Corp., 5.750%		23,953
	736	Chesapeake Energy Corp., 5.750%		463,010
	84	Chesapeake Energy Corp., Series A, 5.750% 144A		50,302
	38,269	El Paso Energy Capital Trust I, 4.750%		1,798,260

		Total Preferred Stocks (Identified Cost $2,255,025)		2,363,875


Principal Amount (‡)
	Short-Term Investments — 8.8%
$	69,586,967	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/28/2018 at 1.300% to be repurchased at $69,594,506 on 10/01/2018 collateralized by $8,815,000 Federal Home Loan Mortgage Corp., 3.750% due 3/27/2019 valued at $8,872,597; $62,535,000 U.S. Treasury Bond, 3.125% due 8/15/2044 valued at $62,109,262 including accrued interest (Note 2 of Notes to Financial Statements)		69,586,967
	20,000,000	U.S. Treasury Bills, 1.995%-2.008%, 11/08/2018(j)(k)		19,956,300
	15,470,000	U.S. Treasury Bills, 2.030%-2.047%, 11/15/2018(j)(k)		15,429,754
	55,000,000	U.S. Treasury Bills, 2.060%, 11/29/2018(j)		54,808,680
	8,925,000	U.S. Treasury Bills, 2.075%, 10/18/2018(j)		8,916,286
	10,000,000	U.S. Treasury Bills, 2.118%, 12/20/2018(j)		9,952,695
	1,075,000	U.S. Treasury Bills, 2.140%, 12/27/2018(j)		1,069,408
	35,000,000	U.S. Treasury Bills, 2.160%-2.200%, 04/25/2019(j)(k)		34,530,849

		Total Short-Term Investments (Identified Cost $214,294,492)		214,250,939


		Total Investments — 98.8% (Identified Cost $1,987,459,575)		2,415,017,520
		Other assets less liabilities — 1.2%		28,664,152

		Net Assets — 100.0%	$	2,443,681,672


	(‡)	Principal Amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 1,000.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.
	(††††)	Amount shown represents units. One unit represents a principal amount of 25.
	(a)	Non-income producing security.
	(b)	Securities subject to restriction on resale. At September 30, 2018, the restricted securities held by the Fund are as follows:

Acquisition
Date

Acquisition
Cost

Value

% of
Net Assets

Dex Media, Inc.

August 12, 2016

$3,266

7,035

Less than 0.1%

See accompanying notes to financial statements.

| 38

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)


	(c)			Security (or a portion thereof) has been designated to cover the Fund’s obligations under open derivative contracts.
	(d)			Perpetual bond with no specified maturity date.
	(e)			Level 3 security. Value has been determined using significant unobservable inputs. See Note 3 of Notes to Financial Statements.
	(f)			Variable rate security. The interest rate adjusts periodically based on; (i) changes in current interest rates and/or prepayments on underlying pools of assets, if applicable, (ii) reference to a base lending rate plus or minus a margin, and/or (iii) reference to a base lending rate adjusted by a multiplier and/or subject to certain floors or caps. Rate as of September 30, 2018 is disclosed.
	(g)			Illiquid security. (Unaudited)
	(h)			Securities classified as fair valued pursuant to the Fund’s pricing policies and procedures. At September 30, 2018, the value of these securities amounted to $248,000 or less than 0.1% of net assets. See Note 2 of Notes to Financial Statements.
	(i)			Treasury Inflation Protected Security (TIPS).
	(j)			Interest rate represents discount rate at time of purchase; not a coupon rate.
	(k)			The Fund’s investment in U.S. Government/Agency securities is comprised of various lots with differing discount rates. These separate investments, which have the same maturity date, 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, 2018, the value of Rule 144A holdings amounted to $118,389,594 or 4.8% of net assets.
	ADR			An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.
	EMTN			Euro Medium Term Note
	GMTN			Global Medium Term Note
	MTN			Medium Term Note

	ARS			Argentine Peso
	AUD			Australian Dollar
	BRL			Brazilian Real
	CAD			Canadian Dollar
	CLP			Chilean Peso
	COP			Colombian Peso
	EUR			Euro
	GBP			British Pound
	IDR			Indonesian Rupiah
	INR			Indian Rupee
	JPY			Japanese Yen
	KRW			South Korean Won
	MXN			Mexican Peso
	NOK			Norwegian Krone
	PLN			Polish Zloty
	SEK			Swedish Krona
	THB			Thai Baht
	UYU			Uruguayan Peso
	ZAR			South African Rand

See accompanying notes to financial statements.

39 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)

At September 30, 2018, the Fund had the following open forward foreign currency contracts:


Counterparty	Delivery Date		Currency Bought/ Sold (B/S)	Units of Currency			In Exchange for		Notional Value		Unrealized Appreciation (Depreciation)
Bank of America, N.A.		10/09/2018	ARS		S	22,765,000	$	748,848	$	546,117	$	202,731
Bank of America, N.A.		12/04/2018	BRL		B	7,285,000		1,748,806		1,794,847		46,041
Bank of America, N.A.		12/04/2018	BRL		S	18,850,000		4,519,192		4,644,183		(124,991	)
Credit Suisse International		12/19/2018	CAD		B	4,605,000		3,541,218		3,571,209		29,991
Credit Suisse International		12/19/2018	CAD		S	52,245,000		40,232,408		40,516,353		(283,945	)
Credit Suisse International		12/19/2018	COP		S	2,593,255,000		834,193		873,911		(39,718	)
Credit Suisse International		12/19/2018	GBP		B	5,230,000		6,842,984		6,842,369		(615	)
Credit Suisse International		12/19/2018	IDR		B	52,301,300,000		3,458,067		3,475,223		17,156
Credit Suisse International		12/19/2018	IDR		S	100,991,415,000		6,616,747		6,710,497		(93,750	)
Credit Suisse International		12/19/2018	JPY		B	7,275,500,000		65,761,882		64,430,428		(1,331,454	)
Goldman Sachs & Co.		12/19/2018	MXN		B	66,055,000		3,421,556		3,487,390		65,834
HSBC Bank USA		12/19/2018	AUD		B	905,000		642,668		654,567		11,899
Morgan Stanley Capital Services, Inc.		12/19/2018	EUR		B	49,825,000		58,224,000		58,228,497		4,497
UBS AG		12/19/2018	NOK		S	4,200,000		502,086		517,779		(15,693	)
UBS AG		12/19/2018	SEK		B	7,350,000		817,713		832,673		14,960
UBS AG		12/19/2018	THB		S	83,000,000		2,539,003		2,572,883		(33,880	)
UBS AG		12/19/2018	ZAR		B	26,115,000		1,757,698		1,827,786		70,088
UBS AG		12/19/2018	ZAR		S	42,125,000		2,816,078		2,948,325		(132,247	)

Total											$	(1,593,096	)

At September 30, 2018, the Fund had the following open forward cross currency contracts:


Counterparty	Settlement Date		Deliver/Units of Currency		Receive/Units of Currency			Notional Value		Unrealized Appreciation (Depreciation)
Credit Suisse International		12/19/2018	NOK	14,180,000		EUR	1,443,139	$	1,686,540	$	(61,581	)

See accompanying notes to financial statements.

| 40

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Global Allocation Fund – (continued)

Industry Summary at September 30, 2018


Treasuries	7.4	%
Capital Markets	7.1
Internet & Direct Marketing Retail	5.8
Insurance	5.3
Interactive Media & Services	4.7
Chemicals	4.4
IT Services	4.2
Aerospace & Defense	3.8
Food Products	3.8
Industrial Conglomerates	3.0
Health Care Equipment & Supplies	2.6
Software	2.4
Machinery	2.3
Hotels, Restaurants & Leisure	2.3
Health Care Providers & Services	2.2
Banks	2.2
Other Investments, less than 2% each	26.5
Short-Term Investments	8.8

Total Investments	98.8
Other assets less liabilities (including forward foreign currency contracts)	1.2

Net Assets	100.0	%

Currency Exposure Summary at September 30, 2018


United States Dollar	73.0	%
Swiss Franc	6.5
British Pound	4.7
Canadian Dollar	3.5
Hong Kong Dollar	2.8
Euro	2.6
Swedish Krona	2.0
Other, less than 2% each	3.7

Total Investments	98.8
Other assets less liabilities (including forward foreign currency contracts)	1.2

Net Assets	100.0	%

See accompanying notes to financial statements.

41 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Growth Fund


Shares		Description	Value (†)
	Common Stocks — 98.4% of Net Assets
		Air Freight & Logistics — 4.1%
	3,620,357	Expeditors International of Washington, Inc.	$	266,204,850
	836,386	United Parcel Service, Inc., Class B		97,648,066

				363,852,916

		Beverages — 6.1%
	4,822,051	Coca-Cola Co. (The)		222,730,536
	5,378,625	Monster Beverage Corp.(a)		313,466,265

				536,196,801

		Biotechnology — 5.5%
	835,189	Amgen, Inc.		173,126,328
	775,954	Regeneron Pharmaceuticals, Inc.(a)		313,516,454

				486,642,782

		Capital Markets — 4.4%
	720,212	FactSet Research Systems, Inc.		161,118,626
	3,746,716	SEI Investments Co.		228,924,348

				390,042,974

		Communications Equipment — 3.0%
	5,401,854	Cisco Systems, Inc.		262,800,197

		Consumer Finance — 1.2%
	984,244	American Express Co.		104,812,144

		Energy Equipment & Services — 2.5%
	3,675,383	Schlumberger Ltd.		223,904,332

		Food Products — 2.9%
	16,488,325	Danone S.A., Sponsored ADR		254,991,946

		Health Care Equipment & Supplies — 1.6%
	1,301,597	Varian Medical Systems, Inc.(a)		145,687,752

		Health Care Technology — 2.2%
	3,047,927	Cerner Corp.(a)		196,316,978

		Hotels, Restaurants & Leisure — 5.7%
	4,038,599	Starbucks Corp.		229,553,967
	3,179,037	Yum China Holdings, Inc.		111,615,989
	1,766,803	Yum! Brands, Inc.		160,620,061

				501,790,017

		Household Products — 4.6%
	2,613,864	Colgate-Palmolive Co.		174,998,195
	2,760,214	Procter & Gamble Co. (The)		229,732,611

				404,730,806

		Interactive Media & Services — 10.2%
	194,559	Alphabet, Inc., Class A(a)		234,848,278
	194,290	Alphabet, Inc., Class C(a)		231,879,286
	2,648,309	Facebook, Inc., Class A(a)		435,540,898

				902,268,462

See accompanying notes to financial statements.

| 42

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Growth Fund – (continued)


Shares		Description	Value (†)
		Internet & Direct Marketing Retail — 12.4%
	2,494,077	Alibaba Group Holding Ltd., Sponsored ADR(a)	$	410,924,127
	340,000	Amazon.com, Inc.(a)		681,020,000

				1,091,944,127

		IT Services — 7.0%
	621,048	Automatic Data Processing, Inc.		93,567,092
	3,514,774	Visa, Inc., Class A		527,532,429

				621,099,521

		Machinery — 2.7%
	1,560,189	Deere & Co.		234,543,212

		Pharmaceuticals — 5.7%
	1,454,810	Merck & Co., Inc.		103,204,222
	1,765,158	Novartis AG, Sponsored ADR		152,086,013
	5,198,936	Novo Nordisk AS, Sponsored ADR		245,077,843

				500,368,078

		Semiconductors & Semiconductor Equipment — 3.3%
	4,114,537	QUALCOMM, Inc.		296,370,100

		Software — 13.3%
	2,561,037	Autodesk, Inc.(a)		399,803,486
	2,778,159	Microsoft Corp.		317,738,045
	8,849,897	Oracle Corp.		456,300,689

				1,173,842,220

		Total Common Stocks (Identified Cost $6,304,109,536)	��	8,692,205,365


Principal Amount
	Short-Term Investments — 1.4%
$	129,834,440	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/28/2018 at 1.300% to be repurchased at $129,848,505 on 10/01/2018 collateralized by $133,340,000 U.S. Treasury Bond, 3.125% due 8/15/2044 valued at $132,432,221 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $129,834,440)		129,834,440


		Total Investments — 99.8% (Identified Cost $6,433,943,976)		8,822,039,805
		Other assets less liabilities — 0.2%		14,138,815

		Net Assets — 100.0%	$	8,836,178,620


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Non-income producing security.

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

See accompanying notes to financial statements.

43 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Growth Fund – (continued)

Industry Summary at September 30, 2018


Software	13.3	%
Internet & Direct Marketing Retail	12.4
Interactive Media & Services	10.2
IT Services	7.0
Beverages	6.1
Hotels, Restaurants & Leisure	5.7
Pharmaceuticals	5.7
Biotechnology	5.5
Household Products	4.6
Capital Markets	4.4
Air Freight & Logistics	4.1
Semiconductors & Semiconductor Equipment	3.3
Communications Equipment	3.0
Food Products	2.9
Machinery	2.7
Energy Equipment & Services	2.5
Health Care Technology	2.2
Other Investments, less than 2% each	2.8
Short-Term Investments	1.4

Total Investments	99.8
Other assets less liabilities	0.2

Net Assets	100.0	%

See accompanying notes to financial statements.

| 44

Statements of Assets and Liabilities

September 30, 2018


	Global Allocation Fund		Growth Fund
ASSETS
Investments at cost	$	1,987,459,575	$	6,433,943,976
Net unrealized appreciation		427,557,945		2,388,095,829

Investments at value		2,415,017,520		8,822,039,805
Due from brokers (Note 2)		1,070,000		—
Foreign currency at value (identified cost $8,591,827 and $0, respectively)		8,496,638		—
Receivable for Fund shares sold		8,332,013		15,816,390
Receivable for securities sold		10,030,041		—
Collateral received for open forward foreign currency contracts (Note 4)		610,000		—
Dividends and interest receivable		7,088,817		5,935,719
Unrealized appreciation on forward foreign currency contracts (Note 2)		463,197		—
Tax reclaims receivable		650,865		3,880,910
Prepaid expenses (Note 8)		2,118		8,251

TOTAL ASSETS		2,451,761,209		8,847,681,075

LIABILITIES
Payable for securities purchased		1,530,404		—
Payable for Fund shares redeemed		1,406,184		6,818,085
Unrealized depreciation on forward foreign currency contracts (Note 2)		2,117,874		—
Foreign taxes payable (Note 2)		831		—
Due to brokers (Note 2)		610,000		—
Management fees payable (Note 6)		1,485,120		3,603,635
Deferred Trustees’ fees (Note 6)		186,609		303,332
Administrative fees payable (Note 6)		86,301		312,650
Payable to distributor (Note 6d)		43,216		79,497
Other accounts payable and accrued expenses		612,998		385,256

TOTAL LIABILITIES		8,079,537		11,502,455

NET ASSETS	$	2,443,681,672	$	8,836,178,620

NET ASSETS CONSIST OF:
Paid-in capital	$	1,932,322,057	$	6,112,654,110
Accumulated earnings		511,359,615		2,723,524,510

NET ASSETS	$	2,443,681,672	$	8,836,178,620

See accompanying notes to financial statements.

45 |

Statements of Assets and Liabilities (continued)

September 30, 2018


	Global Allocation Fund		Growth Fund
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	401,035,799	$	1,083,361,687

Shares of beneficial interest		17,362,620		67,487,441

Net asset value and redemption price per share	$	23.10	$	16.05

Offering price per share (100/94.25 of net asset value) (Note 1)	$	24.51	$	17.03

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	412,610,176	$	130,133,034

Shares of beneficial interest		18,116,511		8,862,438

Net asset value and offering price per share	$	22.78	$	14.68

Class N shares:
Net assets	$	80,346,328	$	1,001,687,563

Shares of beneficial interest		3,455,458		58,424,350

Net asset value, offering and redemption price per share	$	23.25	$	17.15

Class Y shares:
Net assets	$	1,549,689,369	$	6,620,996,336

Shares of beneficial interest		66,642,864		386,202,855

Net asset value, offering and redemption price per share	$	23.25	$	17.14

See accompanying notes to financial statements.

| 46

Statements of Operations

For the Year Ended September 30, 2018


	Global Allocation Fund			Growth Fund
INVESTMENT INCOME
Dividends	$	19,035,949		$	101,439,418
Non-cash dividends (Note 2b)		—			6,153,115
Interest		27,732,812			1,007,782
Less net foreign taxes withheld		(658,305	)		(2,845,183	)

		46,110,456			105,755,132

Expenses
Management fees (Note 6)		15,669,842			40,912,661
Service and distribution fees (Note 6)		4,682,654			3,998,693
Administrative fees (Note 6)		920,112			3,599,450
Trustees’ fees and expenses (Note 6)		84,322			246,949
Transfer agent fees and expenses (Notes 6 and 7)		1,653,427			6,475,850
Audit and tax services fees		56,526			41,976
Custodian fees and expenses		249,415			267,879
Legal fees		41,638			175,122
Registration fees		162,909			314,934
Shareholder reporting expenses		147,423			725,787
Miscellaneous expenses (Note 8)		96,227			211,146

Total expenses		23,764,495			56,970,447
Less waiver and/or expense reimbursement (Note 6)		(478	)		(29,092	)

Net expenses		23,764,017			56,941,355

Net investment income		22,346,439			48,813,777

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FORWARD FOREIGN CURRENCY CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		77,877,116			330,004,291
Forward foreign currency contracts (Note 2d)		(230,410	)		—
Foreign currency transactions (Note 2c)		(624,490	)		—
Net change in unrealized appreciation (depreciation) on:
Investments		74,564,259			902,573,085
Forward foreign currency contracts (Note 2d)		(1,452,384	)		—
Foreign currency translations (Note 2c)		(77,945	)		—

Net realized and unrealized gain on investments, forward foreign currency contracts and foreign currency transactions		150,056,146			1,232,577,376

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	172,402,585		$	1,281,391,153

See accompanying notes to financial statements.

47 |

Statements of Changes in Net Assets


	Global Allocation Fund
	Year Ended September 30, 2018			Year Ended September 30, 2017
FROM OPERATIONS:
Net investment income	$	22,346,439		$	24,109,319
Net realized gain on investments, forward foreign currency contracts and foreign currency transactions		77,022,216			12,813,326
Net change in unrealized appreciation (depreciation) on investments, forward foreign currency contracts and foreign currency translations		73,033,930			173,627,998

Net increase in net assets resulting from operations		172,402,585			210,550,643

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Class A		(7,114,532	)		(3,289,853	)(a)
Class C		(4,826,992	)		(1,771,656	)(a)
Class N		(1,642,868	)		—
Class Y		(26,544,930	)		(12,428,003	)(a)

Total distributions		(40,129,322	)		(17,489,512	)

NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)		525,543,091			53,800,129

Net increase in net assets		657,816,354			246,861,260
NET ASSETS
Beginning of the year		1,785,865,318			1,539,004,058

End of the year	$	2,443,681,672		$	1,785,865,318

(a)

See Note 2g of Notes to Financial Statements.

See accompanying notes to financial statements.

| 48

Statements of Changes in Net Assets (continued)


	Growth Fund
	Year Ended September 30, 2018			Year Ended September 30, 2017
FROM OPERATIONS:
Net investment income	$	48,813,777		$	35,730,679
Net realized gain on investments		330,004,291			111,820,263
Net change in unrealized appreciation (depreciation) on investments		902,573,085			937,804,825

Net increase in net assets resulting from operations		1,281,391,153			1,085,355,767

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Class A		(23,626,171	)		(9,966,200	)(a)
Class C		(2,938,721	)		(1,227,895	)(a)
Class N		(9,153,975	)		(1,680,867	)(a)
Class Y		(147,324,401	)		(55,511,360	)(a)

Total distributions		(183,043,268	)		(68,386,322	)

NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)		530,718,841			1,795,629,622

Net increase in net assets		1,629,066,726			2,812,599,067
NET ASSETS
Beginning of the year		7,207,111,894			4,394,512,827

End of the year	$	8,836,178,620		$	7,207,111,894

(a)

See Note 2g of Notes to Financial Statements.

See accompanying notes to financial statements.

49 |

Financial Highlights

For a share outstanding throughout each period.


	Global Allocation Fund—Class A
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	21.60		$	19.17		$	18.45		$	19.77		$	18.57

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.23			0.31			0.24			0.21			0.28
Net realized and unrealized gain (loss)		1.75			2.36			1.47			(0.37	)		1.49

Total from Investment Operations		1.98			2.67			1.71			(0.16	)		1.77

LESS DISTRIBUTIONS FROM:
Net investment income		(0.19	)		(0.24	)		(0.15	)		(0.20	)		(0.33	)
Net realized capital gains		(0.29	)		—			(0.84	)		(0.96	)		(0.24	)

Total Distributions		(0.48	)		(0.24	)		(0.99	)		(1.16	)		(0.57	)

Net asset value, end of the period	$	23.10		$	21.60		$	19.17		$	18.45		$	19.77

Total return(b)		9.26	%		14.10	%		9.64	%		(0.91	)%		9.62	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	401,036		$	305,275		$	280,263		$	246,371		$	237,167
Net expenses		1.16	%		1.18	%		1.17	%		1.18	%		1.17	%
Gross expenses		1.16	%		1.18	%		1.17	%		1.18	%		1.17	%
Net investment income		1.03	%		1.57	%		1.32	%		1.06	%		1.46	%
Portfolio turnover rate		22	%		35	%		43	%		48	%		49	%

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

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

See accompanying notes to financial statements.

| 50

Financial Highlights (continued)

For a share outstanding throughout each period.


	Global Allocation Fund—Class C
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	21.29		$	18.89		$	18.19		$	19.51		$	18.36

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.06			0.16			0.10			0.06			0.14
Net realized and unrealized gain (loss)		1.73			2.33			1.46			(0.36	)		1.45

Total from Investment Operations		1.79			2.49			1.56			(0.30	)		1.59

LESS DISTRIBUTIONS FROM:
Net investment income		(0.01	)		(0.09	)		(0.02	)		(0.06	)		(0.20	)
Net realized capital gains		(0.29	)		—			(0.84	)		(0.96	)		(0.24	)

Total Distributions		(0.30	)		(0.09	)		(0.86	)		(1.02	)		(0.44	)

Net asset value, end of the period	$	22.78		$	21.29		$	18.89		$	18.19		$	19.51

Total return(b)		8.46	%		13.22	%		8.88	%		(1.66	)%		8.72	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	412,610		$	354,017		$	423,350		$	393,416		$	377,001
Net expenses		1.91	%		1.93	%		1.92	%		1.93	%		1.92	%
Gross expenses		1.91	%		1.93	%		1.92	%		1.93	%		1.92	%
Net investment income		0.29	%		0.84	%		0.57	%		0.31	%		0.71	%
Portfolio turnover rate		22	%		35	%		43	%		48	%		49	%

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

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

See accompanying notes to financial statements.

51 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Global Allocation Fund—Class N
	Year Ended September 30, 2018			Period Ended September 30, 2017*
Net asset value, beginning of the period	$	21.73		$	19.20

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.31			0.20
Net realized and unrealized gain (loss)		1.75			2.33

Total from Investment Operations		2.06			2.53

LESS DISTRIBUTIONS FROM:
Net investment income		(0.25	)		—
Net realized capital gains		(0.29	)		—

Total Distributions		(0.54	)		—

Net asset value, end of the period	$	23.25		$	21.73

Total return		9.60	%		13.18	%(b)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	80,346		$	59,512
Net expenses		0.83	%		0.87	%(c)
Gross expenses		0.83	%		0.87	%(c)
Net investment income		1.36	%		1.48	%(c)
Portfolio turnover rate		22	%		35	%(d)

*	From commencement of Class operations on February 1, 2017 through September 30, 2017.

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

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

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

(d)	Represents the Fund’s portfolio turnover rate for the year ended September 30, 2017.

See accompanying notes to financial statements.

| 52

Financial Highlights (continued)

For a share outstanding throughout each period.


	Global Allocation Fund—Class Y
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	21.74		$	19.29		$	18.55		$	19.89		$	18.68

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.29			0.36			0.29			0.25			0.33
Net realized and unrealized gain (loss)		1.75			2.37			1.49			(0.37	)		1.49

Total from Investment Operations		2.04			2.73			1.78			(0.12	)		1.82

LESS DISTRIBUTIONS FROM:
Net investment income		(0.24	)		(0.28	)		(0.20	)		(0.26	)		(0.37	)
Net realized capital gains		(0.29	)		—			(0.84	)		(0.96	)		(0.24	)

Total Distributions		(0.53	)		(0.28	)		(1.04	)		(1.22	)		(0.61	)

Net asset value, end of the period	$	23.25		$	21.74		$	19.29		$	18.55		$	19.89

Total return		9.49	%		14.42	%		9.97	%		(0.72	)%		9.87	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	1,549,689		$	1,067,062		$	835,391		$	604,609		$	633,057
Net expenses		0.91	%		0.93	%		0.92	%		0.93	%		0.92	%
Gross expenses		0.91	%		0.93	%		0.92	%		0.93	%		0.92	%
Net investment income		1.29	%		1.79	%		1.58	%		1.30	%		1.69	%
Portfolio turnover rate		22	%		35	%		43	%		48	%		49	%

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

See accompanying notes to financial statements.

53 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Growth Fund—Class A
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	14.04		$	11.96		$	9.90		$	9.45		$	8.07

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.06			0.06			0.06			0.05			0.05
Net realized and unrealized gain (loss)		2.29			2.18			2.05			0.45			1.34

Total from Investment Operations		2.35			2.24			2.11			0.50			1.39

LESS DISTRIBUTIONS FROM:
Net investment income		(0.05	)		(0.05	)		(0.05	)		(0.05	)		(0.01	)
Net realized capital gains		(0.29	)		(0.11	)		—			—			—

Total Distributions		(0.34	)		(0.16	)		(0.05	)		(0.05	)		(0.01	)

Net asset value, end of the period	$	16.05		$	14.04		$	11.96		$	9.90		$	9.45

Total return(b)		16.98	%		18.99	%		21.32	%		5.30	%		17.23	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	1,083,362		$	983,047		$	729,989		$	122,203		$	63,682
Net expenses		0.90	%		0.91	%		0.92	%		0.92	%		0.94	%
Gross expenses		0.90	%		0.91	%		0.92	%		0.92	%		0.94	%
Net investment income		0.39	%		0.45	%		0.58	%		0.45	%		0.55	%
Portfolio turnover rate		11	%		8	%		11	%		27	%(c)		14	%

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

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

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

See accompanying notes to financial statements.

| 54

Financial Highlights (continued)

For a share outstanding throughout each period.


	Growth Fund—Class C
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	12.92		$	11.06		$	9.18		$	8.79		$	7.55

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss(a)		(0.05	)		(0.03	)		(0.02	)		(0.03	)		(0.02	)
Net realized and unrealized gain (loss)		2.10			2.00			1.90			0.42			1.26

Total from Investment Operations		2.05			1.97			1.88			0.39			1.24

LESS DISTRIBUTIONS FROM:
Net realized capital gains		(0.29	)		(0.11	)		—			—			—

Total Distributions		(0.29	)		(0.11	)		—			—			—

Net asset value, end of the period	$	14.68		$	12.92		$	11.06		$	9.18		$	8.79

Total return(b)		16.09	%		18.03	%		20.48	%		4.44	%		16.42	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	130,133		$	133,329		$	109,798		$	41,421		$	29,837
Net expenses		1.65	%		1.66	%		1.66	%		1.67	%		1.69	%
Gross expenses		1.65	%		1.66	%		1.66	%		1.67	%		1.69	%
Net investment loss		(0.36	)%		(0.29	)%		(0.16	)%		(0.29	)%		(0.20	)%
Portfolio turnover rate		11	%		8	%		11	%		27	%(c)		14	%

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

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

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

See accompanying notes to financial statements.

55 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Growth Fund—Class N
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	14.97		$	12.73		$	10.52		$	10.01		$	8.56

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.12			0.11			0.10			0.08			0.05
Net realized and unrealized gain (loss)		2.44			2.32			2.18			0.49			1.42

Total from Investment Operations		2.56			2.43			2.28			0.57			1.47

LESS DISTRIBUTIONS FROM:
Net investment income		(0.09	)		(0.08	)		(0.07	)		(0.06	)		(0.02	)
Net realized capital gains		(0.29	)		(0.11	)		—			—			—

Total Distributions		(0.38	)		(0.19	)		(0.07	)		(0.06	)		(0.02	)

Net asset value, end of the period	$	17.15		$	14.97		$	12.73		$	10.52		$	10.01

Total return		17.40	%(b)		19.39	%(b)		21.75	%		5.65	%(b)		17.21	%(b)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	1,001,688		$	341,160		$	60,765		$	1		$	1
Net expenses		0.57	%(c)		0.57	%(c)		0.58	%		0.55	%(c)		0.95	%(c)
Gross expenses		0.58	%		0.58	%		0.58	%		9.82	%		3.45	%
Net investment income		0.73	%		0.80	%		0.82	%		0.71	%		0.52	%
Portfolio turnover rate		11	%		8	%		11	%		27	%(d)		14	%

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

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

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

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

See accompanying notes to financial statements.

| 56

Financial Highlights (continued)

For a share outstanding throughout each period.


	Growth Fund—Class Y
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	14.97		$	12.73		$	10.53		$	10.04		$	8.57

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.10			0.09			0.10			0.07			0.08
Net realized and unrealized gain (loss)		2.44			2.33			2.16			0.49			1.42

Total from Investment Operations		2.54			2.42			2.26			0.56			1.50

LESS DISTRIBUTIONS FROM:
Net investment income		(0.08	)		(0.07	)		(0.06	)		(0.07	)		(0.03	)
Net realized capital gains		(0.29	)		(0.11	)		—			—			—

Total Distributions		(0.37	)		(0.18	)		(0.06	)		(0.07	)		(0.03	)

Net asset value, end of the period	$	17.14		$	14.97		$	12.73		$	10.53		$	10.04

Total return		17.25	%		19.31	%		21.55	%		5.59	%		17.51	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	6,620,996		$	5,749,576		$	3,493,961		$	1,174,150		$	1,004,157
Net expenses		0.65	%		0.66	%		0.66	%		0.67	%		0.69	%
Gross expenses		0.65	%		0.66	%		0.66	%		0.67	%		0.69	%
Net investment income		0.64	%		0.69	%		0.82	%		0.69	%		0.79	%
Portfolio turnover rate		11	%		8	%		11	%		27	%(b)		14	%

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

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

See accompanying notes to financial statements.

57 |

Notes to Financial Statements

September 30, 2018

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 Allocation Fund (the “Global Allocation Fund”)

Loomis Sayles Growth Fund (the “Growth Fund”)

Each Fund is a diversified investment company.

Global Allocation Fund offers Class A, Class C, Class N and Class Y shares. Growth Fund was closed to new investors effective April 28, 2017. Growth Fund continues to offer Class A, Class C, Class N, and Class Y shares to existing shareholders and clients of registered investment advisers and registered representatives trading through intermediary programs/platforms on which the Fund is already available.

Class A shares are sold with a maximum front-end sales charge of 5.75%. Class C shares do not pay a front-end sales charge, pay higher Rule 12b-1 fees than Class A shares for ten years (at which point they automatically convert to Class A shares) and may be subject to a contingent deferred sales charge (“CDSC”) of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are offered with an initial minimum investment of $1,000,000. Class Y shares are offered with an initial minimum investment of $100,000. Certain categories of investors are exempted from the minimum investment amounts as outlined in the relevant Funds’ prospectus.

Most expenses can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), and Natixis ETF Trust. Expenses of a Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (such as the Rule 12b-1 fees applicable to Class A and Class C), and transfer agent fees are borne collectively for Class A, Class C, Class Y and individually for Class N. In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of a Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

| 58

Notes to Financial Statements (continued)

September 30, 2018

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

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

Listed equity securities (including shares of closed-end investment companies and exchange-traded funds) are valued at the last sale price quoted on the exchange where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking an NOCP, at the most recent bid quotations on the applicable NASDAQ Market. Unlisted equity securities (except unlisted preferred equity securities) are valued at the last sale price quoted in the market where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. If there is no last sale price or closing bid quotation available, unlisted equity securities will be valued using evaluated bids furnished by an independent pricing service, if available. In some foreign markets, an official close price and a last sale price may be available from the foreign exchange or market. In those cases, the official close price is used. Debt securities and unlisted preferred equity securities are valued based on evaluated bids furnished to the Funds by an independent pricing service or bid prices obtained from broker-dealers. Senior loans are valued at bid prices supplied by an independent pricing service, if available. Broker-dealer bid prices may be used to value debt and unlisted equity securities and senior loans where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Forward foreign currency contracts are valued utilizing interpolated rates determined based on information provided by an independent pricing service.

59 |

Notes to Financial Statements (continued)

September 30, 2018

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

Illiquid securities for which market quotations are readily available and have been evaluated by the adviser are considered and classified as fair valued securities pursuant to the Fund’s pricing policies and procedures.

As of September 30, 2018, securities held by Global Allocation Fund were fair valued as follows:


Equity securities¹	Percentage of Net Assets			Securities classified as fair valued		Percentage of Net Assets
$470,630,086		19.3	%	$	248,000		Less than 0.1	%

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

| 60

Notes to Financial Statements (continued)

September 30, 2018

basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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

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

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

During the year ended September 30, 2018, the amount of income available to be distributed by the Global Allocation Fund has been reduced by $4,511,893.

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

61 |

Notes to Financial Statements (continued)

September 30, 2018

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

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

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

Purchases of when-issued or delayed delivery securities may have a similar effect on the Funds’ NAV as if the Funds’ had created a degree of leverage in the portfolio. Risks

| 62

Notes to Financial Statements (continued)

September 30, 2018

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.

There were no when-issued or delayed delivery securities held by the Funds as of September 30, 2018.

g. New Disclosure Requirements. In accordance with new reporting requirements pursuant to Regulation S-X of the Securities and Exchange Commission, presentation of certain amounts on the Statements of Changes in Net Assets, for the year ended September 30, 2017, have been conformed to meet the new disclosure requirements. These adjustments include Distributions to Shareholders; where the prior disclosure separately stated distributions from net investment income and distributions from net realized capital gains for each share class of the Fund, they are now combined into a single line item for each respective share class. In addition, disclosure of Undistributed Net Investment Income has been removed from the Statements of Changes in Net Assets.

The following is a summary of the previously disclosed amounts, as reported at September 30, 2017:


Global Allocation Fund
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A	$	(3,289,853	)
Class C		(1,771,656	)
Class Y		(12,428,003	)

Total distributions	$	(17,489,512	)

UNDISTRIBUTED NET INVESTMENT INCOME	$	10,545,895


Growth Fund
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A	$	(2,941,318	)
Class N		(688,493	)
Class Y		(21,181,423	)
Net realized capital gains
Class A		(7,024,882	)
Class C		(1,227,895	)
Class N		(992,374	)
Class Y		(34,329,937	)

Total distributions	$	(68,386,322	)

UNDISTRIBUTED NET INVESTMENT INCOME	$	28,890,806

h. Federal and Foreign Income Taxes. The Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment

63 |

Notes to Financial Statements (continued)

September 30, 2018

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, 2018 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

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

i. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as foreign currency gains and losses, paydown gains and losses, contingent payment debt instruments, convertible bonds, and premium amortization. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts reported on the Statements of Assets and Liabilities. Temporary differences between book and tax distributable earnings are primarily due to deferred Trustees’ fees, forward foreign currency contract mark-to-market, wash sales, premium amortization, contingent payment debt instruments, trust preferred securities, convertible bonds and return of capital distributions received. Amounts of income and capital gain available to be

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Notes to Financial Statements (continued)

September 30, 2018

distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and net realized short-term capital gains are reported as 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, 2018 and 2017 were as follows:


	2018 Distributions Paid From:						2017 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Global Allocation Fund	$	15,533,777	$	24,595,545	$	40,129,322	$	17,489,512	$	—	$	17,489,512
Growth Fund		38,048,905		144,994,363		183,043,268		37,517,315		30,869,007		68,386,322

For the year ended September 30, 2017 differences between amounts previously reported and now disclosed in Note 2g of the Notes to Financial Statements are primarily attributable to different book and tax treatment for short-term capital gains.

Distributions paid to shareholders from net investment income and net realized capital gains, based on accounting principles generally accepted in the United States of America, are consolidated and reported on the Statements of Changes in Net Assets as Distributions to Shareholders. Distributions paid to shareholders from net investment income and net realized capital gains expressed in per-share amounts, based on accounting principles generally accepted in the United States of America, are separately stated and reported within the Financial Highlights.

As of September 30, 2018, the components of distributable earnings on a tax basis were as follows:


	Global Allocation Fund		Growth Fund
Undistributed ordinary income	$	14,665,257	$	33,931,827
Undistributed long-term capital gains		71,351,617		312,860,361

Total undistributed earnings		86,016,874		346,792,188

Unrealized appreciation		425,529,351		2,377,035,654

Total accumulated earnings	$	511,546,225	$	2,723,827,842

65 |

Notes to Financial Statements (continued)

September 30, 2018

As of September 30, 2018, unrealized appreciation (depreciation) as a component of distributable earnings was as follows:


	Global Allocation Fund			Growth Fund
Unrealized appreciation (depreciation)
Investments	$	432,961,062		$	2,377,035,654
Foreign currency translations		(7,431,711	)		—

Total unrealized appreciation	$	425,529,351		$	2,377,035,654

As of September 30, 2018, the cost of investments (including derivatives, if applicable) and unrealized appreciation (depreciation) on a federal tax basis were as follows:


	Global Allocation Fund			Growth Fund
Federal tax cost	$	1,989,471,226		$	6,445,004,151

Gross tax appreciation	$	458,142,747		$	2,424,426,221
Gross tax depreciation		(32,504,196	)		(47,390,567	)

Net tax appreciation	$	425,638,551		$	2,377,035,654

Differences between these amounts and those reported in the components of distributable earnings are primarily attributable to foreign currency translation and capital gains taxes.

j. Repurchase Agreements. Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of September 30, 2018, each Fund, as applicable, had investments in repurchase agreements for which the value of the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.

k. Securities Lending. The Funds have entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Funds, to lend

| 66

Notes to Financial Statements (continued)

September 30, 2018

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, 2018, neither Fund had loaned securities under this agreement.

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

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).

67 |

Notes to Financial Statements (continued)

September 30, 2018

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

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

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2018, at value:

Global Allocation Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks
France	$	—	$	40,387,889	$	—	$	40,387,889
Hong Kong		—		68,114,525		—		68,114,525
India		—		17,524,813		—		17,524,813
Japan		—		26,258,307		—		26,258,307
Sweden		—		48,590,074		—		48,590,074
Switzerland		—		158,478,636		—		158,478,636
United Kingdom		—		111,275,842		—		111,275,842
United States		1,048,647,594		7,035		—		1,048,654,629
All Other Common Stocks(a)		98,543,410		—		—		98,543,410

Total Common Stocks		1,147,191,004		470,637,121		—		1,617,828,125

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Notes to Financial Statements (continued)

September 30, 2018

Global Allocation Fund (continued)

Asset Valuation Inputs (continued)


Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
United States	$	35,577	$	315,848,565	$	124,748	(b)	$	316,008,890
All Other Non-Convertible Bonds(a)		—		252,243,868		—			252,243,868

Total Non-Convertible Bonds		35,577		568,092,433		124,748			568,252,758

Convertible Bonds(a)		—		12,044,193		—			12,044,193
Municipals(a)		—		277,630		—			277,630

Total Bonds and Notes		35,577		580,414,256		124,748			580,574,581

Preferred Stocks(a)		1,798,260		565,615		—			2,363,875
Short-Term Investments		—		214,250,939		—			214,250,939

Total Investments		1,149,024,841		1,265,867,931		124,748			2,415,017,520

Forward Foreign Currency Contracts (unrealized appreciation)		—		463,197		—			463,197

Total	$	1,149,024,841	$	1,266,331,128	$	124,748		$	2,415,480,717

Liability Valuation Inputs


Description	Level 1		Level 2			Level 3		Total
Forward Foreign Currency Contracts (unrealized depreciation)	$	—	$	(2,117,874	)	$	—	$	(2,117,874	)

(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.

Growth Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	8,692,205,365	$	—	$	—	$	8,692,205,365
Short-Term Investments		—		129,834,440		—		129,834,440

Total	$	8,692,205,365	$	129,834,440	$	—	$	8,822,039,805

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

69 |

Notes to Financial Statements (continued)

September 30, 2018

For the year ended September 30, 2018, there were no transfers among Levels 1, 2 and 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, 2017 and/or September 30, 2018:

Global Allocation Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2017			Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Common Stocks
United States	$	3,886		$	—	$	—		$	—		$	—
Bonds and Notes
Non-Convertible Bonds
United States		1,075,475			—		(132	)		(7,526	)		—

Total	$	1,079,361		$	—	$	(132	)	$	(7,526	)	$	—


Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2018			Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2018
Common Stocks
United States	$	—		$	—	$	(3,886	)	$	—		$	—
Bonds and Notes
Non-Convertible Bonds
United States		(21,120	)		153,526		(1,075,475	)		124,748			(7,526	)

Total	$	(21,120	)	$	153,526	$	(1,079,361	)	$	124,748		$	(7,526	)

A common stock valued at $3,886 was transferred from Level 3 to Level 2 during the period ended September 30, 2018. At September 30, 2017, this security was valued at fair value as determined in good faith by the Fund’s advisor using broker-dealer bid prices for which the inputs are unobservable to the Fund. At September 30, 2018, this security was valued on the basis of closing bid quotations furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

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Notes to Financial Statements (continued)

September 30, 2018

A debt security valued at $153,526 was transferred from Level 2 to Level 3 during the period ended September 30, 2018. At September 30, 2017, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2018, this security was valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service did not provide a reliable price for the security.

A debt security valued at $158,100 was transferred from Level 3 to Level 2 during the period ended September 30, 2018. At September 30, 2017, this security was valued at fair value as determined in good faith by the Fund’s investment adviser as an independent pricing service did not provide a reliable price for the security. At September 30, 2018, 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.

A debt security valued at $917,375 was transferred from Level 3 to Level 2 during the period ended September 30, 2018. At September 30, 2017, this security was valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the security. At September 30, 2018, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

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

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

Global Allocation 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, 2018, the Fund engaged in forward foreign currency transactions for hedging purposes and to gain exposure to foreign currencies.

71 |

Notes to Financial Statements (continued)

September 30, 2018

The following is a summary of derivative instruments for Global Allocation Fund as of September 30, 2018, as reflected within the Statements of Assets and Liabilities


Assets	Unrealized appreciation on forward foreign currency contracts
Over-the-counter asset derivatives
Foreign exchange contracts	$	463,197


Liabilities		Unrealized depreciation on forward foreign currency contracts
Over-the-counter liability derivatives
Foreign exchange contracts		$(2,117,874)

Transactions in derivative instruments for Global Allocation Fund during the year ended September 30, 2018 as reflected within the Statements of Operations were as follows:


Net Realized Gain (Loss) on:	Forward foreign currency contracts
Foreign exchange contracts	$	(230,410	)


Net Change in Unrealized Appreciation (Depreciation) on:	Forward foreign currency contracts
Foreign exchange contracts	$	(1,452,384	)

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

The volume of forward foreign currency contract activity, as a percentage of net assets, for Global Allocation 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, 2018:


Global Allocation Fund	Forwards
Average Notional Amount Outstanding		7.57	%
Highest Notional Amount Outstanding		9.08	%
Lowest Notional Amount Outstanding		6.66	%
Notional Amount Outstanding as of September 30, 2018		8.51	%

| 72

Notes to Financial Statements (continued)

September 30, 2018

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

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

Global Allocation Fund enters into over-the-counter derivatives, including forward foreign currency contracts, pursuant to International Swaps and Derivatives Association, Inc. (“ISDA”) agreements negotiated between the Fund and its counterparties. ISDA agreements typically contain, among other things, terms for the posting of collateral and master netting provisions in the event of a default or other termination event. Collateral is posted by the Fund or the counterparty to the extent of the net mark-to-market exposure to the other party of all open contracts under the agreement, subject to minimum transfer requirements. Master netting provisions allow the Fund and the counterparty, in the event of a default or other termination event, to offset amounts owed by each related to derivative contracts, including any posted collateral, to one net amount payable by either the Fund or the counterparty. The Fund’s ISDA agreements typically contain provisions that allow a counterparty to terminate open contracts early if the NAV of a Fund declines beyond a certain threshold. For financial reporting purposes, the Fund does not offset derivative assets and liabilities, and any related collateral received or pledged, on the Statements of Assets and Liabilities.

As of September 30, 2018, gross amounts of over-the-counter derivative assets and liabilities not offset in the Statements of Assets and Liabilities and the related net amounts after taking into account master netting arrangements, by counterparty, are as follows:

Global Allocation Fund


Counterparty	Gross Amounts of Assets		Offset Amount			Net Asset Balance		Collateral (Received)/ Pledged			Net Amount
Bank of America, N.A.	$	248,772	$	(124,991	)	$	123,781	$	(123,781	)	$	—
Credit Suisse International		47,147		(47,147	)		—		—			—
Goldman Sachs & Co.		65,834		—			65,834		—			65,834
HSBC Bank USA		11,899		—			11,899		—			11,899
Morgan Stanley Capital Services, Inc.		4,497		—			4,497		(4,497	)		—
UBS AG		85,048		(85,048	)		—		—			—

	$	463,197	$	(257,186	)	$	206,011	$	(128,278	)	$	77,733

73 |

Notes to Financial Statements (continued)

September 30, 2018

Global Allocation Fund (continued)


Counterparty	Gross Amounts of Assets			Offset Amount		Net Liability Balance			Collateral (Received)/ Pledged		Net Amount
Bank of America, N.A.	$	(124,991	)	$	124,991	$	—		$	—	$	—
Credit Suisse International		(1,811,063	)		47,147		(1,763,916	)		1,070,000		(693,916	)
UBS AG		(181,820	)		85,048		(96,772	)		—		(96,772	)

	$	(2,117,874	)	$	257,186	$	(1,860,688	)	$	1,070,000	$	(790,688	)

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

Counterparty risk is managed based on policies and procedures established by the Fund’s adviser. Such policies and procedures may include, but are not limited to, minimum counterparty credit rating requirements, monitoring of counterparty credit default swap spreads and posting of collateral. A Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the Fund’s aggregated unrealized gains and the amount of any collateral pledged to the counterparty, which may be offset by any collateral posted to the Fund by the counterparty. ISDA master agreements can help to manage counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under these ISDA agreements, collateral is routinely transferred if the total net exposure in respect of certain transactions, net of existing collateral already in place, exceeds a specified amount (typically $250,000, depending on the counterparty). With exchange-traded derivatives, there is minimal counterparty credit risk to the Fund because the exchange’s clearing house, as counterparty to these instruments, stands between the buyer and the seller of the contract. Credit risk still exists in exchange-traded derivatives with respect to initial and variation margin that is held in a broker’s customer accounts. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro rata basis across all of the broker’s customers, potentially resulting in losses to the Fund. Based on balances reflected on each Fund’s Statement of Assets and Liabilities, the following table shows (i) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the Fund would incur if parties (including OTC derivative counterparties and brokers holding margin for exchange-traded derivatives) to the

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Notes to Financial Statements (continued)

September 30, 2018

relevant financial instruments failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the Fund, and (ii) the amount of loss that the Fund would incur after taking into account master netting provisions pursuant to ISDA agreements, as of September 30, 2018:

Fund

Maximum Amount

of Loss - Gross

Maximum Amount

of Loss - Net

Global Allocation Fund

1,533,197

77,733

Net loss amount reflects cash received as collateral for Global Allocation Fund of $610,000.

5. Purchases and Sales of Securities. For the year ended September 30, 2018, 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 Allocation Fund	$	659,469,104	$	358,710,754
Growth Fund		1,344,874,832		892,934,941

For the year ended September 30, 2018, purchases and sales of U.S. Government/Agency securities by the Global Allocation Fund were $115,817,515 and $75,987,821, 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, 2018, provided for fees at the following annual percentage rates of each Fund’s average daily net assets:


	Percentage of Average Daily Net Assets
Fund	First $2 billion			Over $2 billion
Global Allocation Fund		0.75	%		0.73	%
Growth Fund		0.50	%		0.50	%

75 |

Notes to Financial Statements (continued)

September 30, 2018

on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.

For the year ended September 30, 2018 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 C			Class N			Class Y
Global Allocation Fund		1.25	%		2.00	%		0.95	%		1.00	%
Growth Fund		1.25	%		2.00	%		0.95	%		1.00	%

Loomis Sayles shall be permitted to recover expenses borne under the expense limitation agreements (whether through waiver of 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, 2018, the management fees for each Fund were as follows:


Fund	Gross Management Fees		Percentage of Average Daily Net Assets
Global Allocation Fund	$	15,669,842		0.75	%
Growth Fund		40,912,661		0.50	%

No expenses were recovered for either Fund during the year ended September 30, 2018 under the terms of the expense limitation agreements.

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

b. Service and Distribution Fees. Natixis Distribution, L.P. (“Natixis Distribution”), which is a wholly-owned subsidiary of Natixis, has entered into a distribution agreement with the Trust. Pursuant to this agreement, Natixis 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 C shares (the “Class C Plans”).

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Notes to Financial Statements (continued)

September 30, 2018

Under the Class A Plans, each Fund pays Natixis 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 Natixis Distribution in providing personal services to investors in Class A shares and/or the maintenance of shareholder accounts.

Under the Class C Plans, each Fund pays Natixis 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 C shares, as compensation for services provided by Natixis Distribution in providing personal services to investors in Class C shares and/or the maintenance of shareholder accounts.

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

For the year ended September 30, 2018, the service and distribution fees for each Fund were as follows:


	Service Fees				Distribution Fees
Fund	Class A		Class C		Class C
Global Allocation Fund	$	888,699	$	948,489	$	2,845,466
Growth Fund		2,648,173		337,629		1,012,891

c. Administrative Fees. Natixis Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts, Natixis ETF Trust and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0275% of the next $30 billion and 0.0225% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust of $10 million, which is reevaluated on an annual basis.

Prior to July 1, 2018, each Fund paid Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0350% of the next $30 billion and 0.0325% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust of $10 million, which was reevaluated on an annual basis.

77 |

Notes to Financial Statements (continued)

September 30, 2018

For the year ended September 30, 2018, the administrative fees for each Fund were as follows:


Fund	Administrative Fees
Global Allocation Fund	$	920,112
Growth Fund		3,599,450

d. Sub-Transfer Agent Fees. Natixis 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 Natixis Distribution for all or a portion of the servicing fees paid to these intermediaries. The reimbursement amounts (sub-transfer agent fees) paid to Natixis Distribution are subject to a current per-account equivalent fee limit approved by the Funds’ Board of Trustees, which is based on fees for similar services paid to the Funds’ transfer agent and other service providers. Class N shares do not bear such expenses.

For the year ended September 30, 2018, 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 Allocation Fund	$	1,576,887
Growth Fund		6,067,378

As of September 30, 2018, the Funds owe Natixis Distribution the following reimbursements for sub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as payable to distributor):


Fund	Reimbursements of Sub-Transfer Agent Fees
Global Allocation Fund	$	43,216
Growth Fund		79,497

Sub-transfer agent fees attributable to Class A, 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.

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Notes to Financial Statements (continued)

September 30, 2018

e. Commissions. Commissions (including CDSCs) on Fund shares retained by Natixis Distribution during the year ended September 30, 2018, were as follows:


Fund	Commissions
Global Allocation Fund	$	125,405
Growth Fund		75,263

f. Trustees Fees and Expenses. The Trust does not pay any compensation directly to its officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distribution, Natixis US or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $340,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that he attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $170,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, the chairperson of the Contract Review Committee and the chairperson of the Audit Committee each receive an additional retainer fee at the annual rate of $20,000. The chairperson of the Governance Committee receives an additional retainer fee at the annual rate of $12,000. Each Contract Review Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust 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, 2018, the Chairperson of the Board received a retainer fee at the annual rate of $325,000 and each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $155,000, the chairperson of the Contract Review Committee and Audit Committee each received an additional retainer fee at the annual rate of $17,500 and the chairperson of the Governance Committee received an additional retainer fee at the annual rate of $10,000. All other Trustee fees remained unchanged.

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Notes to Financial Statements (continued)

September 30, 2018

Loomis Sayles Funds Trusts and Natixis ETF Trust, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees in the Statements of Assets and Liabilities.

g. Affiliated Ownership. As of September 30, 2018, 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 Allocation Fund		—			0.80	%		0.80	%
Growth Fund		0.21	%		0.64	%		0.85	%

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

h. Reimbursement of Transfer Agent Fees and Expenses. Natixis Advisors has given a binding contractual undertaking to the Global Allocation Fund to reimburse any and all transfer agency expenses for the Fund’s Class N shares. This undertaking is in effect through January 31, 2019.

Natixis Advisors has given a binding contractual undertaking to the Growth Fund to reimburse any and all transfer agency expenses attributable to accounts admitted to Class N via a provision that allows Natixis Distribution, at its sole discretion, to waive the investment minimum for certain accounts, as described in the Fund’s prospectus. This undertaking is in effect through June 30, 2019. Prior to February 1, 2018, Natixis Advisors had given a binding contractual undertaking to the Fund to reimburse any and all transfer agency expenses for the Fund’s Class N shares.

Expenses reimbursed pursuant to these undertakings are not subject to recovery under the expense limitation agreement described above.

For the year ended September 30, 2018, Natixis Advisors reimbursed the Funds for transfer agency expenses as follows:


Fund	Reimbursement of Transfer Agency Expenses
	Class N
Global Allocation Fund	$	478
Growth Fund		29,092

7. Class-Specific Transfer Agent Fees and Expenses. Transfer agent fees and expenses attributable to Class A, 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. Transfer agent fees and expenses attributable to Class N are allocated to Class N.

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Notes to Financial Statements (continued)

September 30, 2018

For the year ended September 30, 2018 the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):


	Transfer Agent Fees and Expenses
Fund	Class A		Class C		Class N		Class Y
Global Allocation Fund	$	290,463	$	310,328	$	478	$	1,052,158
Growth Fund		905,599		115,568		30,440		5,424,243

8. Line of Credit. Effective April 12, 2018, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, entered into a $400,000,000 committed unsecured line of credit provided by State Street Bank. Any one Fund may borrow up to $350,000,000 under the line of credit agreement (as long as all borrowings by all Funds in the aggregate do not exceed the $400,000,000 limit at any time), subject to each Fund’s investment restrictions and its contractual obligations under the line of credit. Interest is charged to the Funds based upon the terms set forth in the agreement. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit. The Funds paid an arrangement fee, an upfront fee, and other fees in connection with the new line of credit agreement, which are being amortized over a period of 364 days and are reflected as miscellaneous expenses on the Statements of Operations. The unamortized balance is reflected as prepaid expenses on the Statements of Assets and Liabilities.

Prior to April 12, 2018, each Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, entered into a 364-day, $400,000,000 syndicated, committed, unsecured line of credit with Citibank, N.A. to be used for temporary or emergency purposes only. Any one Fund was able borrow up to the full $400,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate did not exceed the $400,000,000 limit at any time), subject to each Fund’s investment restrictions and its contractual obligations under the line of credit. Interest was charged to the Funds at a rate equal to the greater of the eurodollar or the federal funds rate plus 1.00%. In addition, a commitment fee of 0.15% per annum, payable on the last business day of each month, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the year ended September 30, 2018, neither Fund had borrowings under this agreement.

9. Brokerage Commission Recapture. Each Fund had 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

81 |

Notes to Financial Statements (continued)

September 30, 2018

included in realized gains on investments on the Statements of Operations. For the year ended September 30, 2018, amounts rebated under these agreements were as follows:


Fund	Rebates
Global Allocation Fund	$	19,202
Growth Fund		42,577

Effective March 9, 2018, the brokerage commission recapture program was terminated.

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, 2018, based on management’s evaluation of the shareholder account base, the Funds had accounts representing controlling ownership of more than 5% of the Funds’ total outstanding shares. The number of such accounts, based on accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings were as follows:


	Number of 5% Non- Affiliated Account Holders		Percentage of Non- Affiliated Ownership
Growth Fund		6		57.34	%

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

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Notes to Financial Statements (continued)

September 30, 2018

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, 2018					Year Ended September 30, 2017(a)
Global Allocation Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	8,103,965		$	184,844,305		4,990,165		$	100,716,829
Issued in connection with the reinvestment of distributions	259,737			5,734,993		140,170			2,609,969
Redeemed	(5,133,874	)		(116,824,548	)	(5,616,924	)		(111,165,803	)

Net change	3,229,828		$	73,754,750		(486,589	)	$	(7,839,005	)

Class C
Issued from the sale of shares	6,101,385		$	137,2 96,960		1,966,061		$	38,867,350
Issued in connection with the reinvestment of distributions	149,300			3,268,181		55,158			1,018,222
Redeemed	(4,761,750	)		(107,144,492	)	(7,808,773	)		(152,602,063	)

Net change	1,488,935		$	33,420,649		(5,787,554	)	$	(112,716,491	)

Class N
Issued from the sale of shares	880,524		$	20,044,847		2,739,038		$	58,209,318
Issued in connection with the reinvestment of distributions	70,593			1,565,047		—			—
Redeemed	(234,590	)		(5,402,022	)	(107	)		(2,286	)

Net change	716,527		$	16,207,872		2,738,931		$	58,207,032

	Year Ended September 30, 2018					Year Ended September 30, 2017(a)
Global Allocation Fund	Shares			Amount		Shares			Amount
Class Y
Issued from the sale of shares	26,704,228		$	611,912,156		19,036,860		$	382,730,980
Issued in connection with the reinvestment of distributions	905,490			20,083,757		520,438			9,732,190
Redeemed	(10,059,816	)		(229,836,093	)	(13,769,090	)		(276,314,577	)

Net change	17,549,902		$	402,159,820		5,788,208		$	116,148,593

Increase (decrease) from capital share transactions	22,985,192		$	525,543,091		2,252,996		$	53,800,129

(a)	From commencement of operations on February 1, 2017 through September 30, 2017 for Class N shares.

83 |

Notes to Financial Statements (continued)

September 30, 2018

12. Capital Shares (continued).


	Year Ended September 30, 2018					Year Ended September 30, 2017
Growth Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	9,892,333		$	148,235,534		23,963,667		$	290,490,483
Issued in connection with the reinvestment of distributions	1,464,494			21,381,619		786,586			8,974,953
Redeemed	(13,865,728	)		(209,484,702	)	(15,774,109	)		(197,838,024	)

Net change	(2,508,901	)	$	(39,867,549	)	8,976,144		$	101,627,412

Class C
Issued from the sale of shares	1,122,136		$	15,439,085		3,905,114		$	42,699,406
Issued in connection with the reinvestment of distributions	148,410			1,993,145		68,093			719,057
Redeemed	(2,724,624	)		(37,772,137	)	(3,588,005	)		(41,290,336	)

Net change	(1,454,078	)	$	(20,339,907	)	385,202		$	2,128,127

Class N
Issued from the sale of shares	43,285,115		$	684,373,304		19,181,068		$	266,844,514
Issued in connection with the reinvestment of distributions	380,354			5,914,498		138,457			1,680,867
Redeemed	(8,026,613	)		(130,323,337	)	(1,306,361	)		(17,394,963	)

Net change	35,638,856		$	559,964,465		18,013,164		$	251,130,418

Class Y
Issued from the sale of shares	134,173,905		$	2,158,881,553		245,187,409		$	3,227,208,558
Issued in connection with the reinvestment of distributions	7,592,419			118,138,051		2,860,266			34,723,626
Redeemed	(139,565,871	)		(2,246,057,772	)	(138,438,910	)		(1,821,188,519	)

Net change	2,200,453		$	30,961,832		109,608,765		$	1,440,743,665

Increase (decrease) from capital share transactions	33,876,330		$	530,718,841		136,983,275		$	1,795,629,622

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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Loomis Sayles Funds II and Shareholders of Loomis Sayles Global Allocation Fund and Loomis Sayles Growth Fund:

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the portfolio of investments, of Loomis Sayles Global Allocation Fund and Loomis Sayles Growth Fund (two of the funds constituting Loomis Sayles Funds II, hereafter collectively referred to as the “Funds”) as of September 30, 2018, the related statements of operations for the year ended September 30, 2018, the statements of changes in net assets for each of the two years in the period ended September 30, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of September 30, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended September 30, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of

85 |

Report of Independent Registered Public Accounting Firm

September 30, 2018 by correspondence with the custodian, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 20, 2018

We have served as the auditor of one or more investment companies in the Natixis Investment Company Complex since at least 1995. We have not determined the specific year we began serving as auditor.

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2018 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2018, 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 Allocation		52.71	%
Growth		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, 2018, unless subsequently determined to be different.


Fund	Amount
Global Allocation	$	24,595,545
Growth		144,994,363

Qualified Dividend Income. For the fiscal year ended September 30, 2018, 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 2018, complete information will be reported in conjunction with Form 1099-DIV.


Fund
Global Allocation
Growth

87 |

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 888 Boylston Street, Suite 800, Boston, MA 02199-8197. 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

Kenneth A. Drucker (1945)	Chairperson of the Board of Trustees since January 2017 Trustee since 2008 Ex Officio member of Audit Committee, Contract Review Committee and Governance Committee	Retired	51 None	Significant experience on the Board and on the boards of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)

Edmond J. English (1953)	Trustee since 2013 Audit Committee Member and Governance Committee Member	Executive Chairman; formerly, Chief Executive Officer of Bob’s Discount Furniture (retail)	51 Director, Burlington Stores, Inc. (retail)	Significant experience on the Board and significant experience on the boards of other business organizations (including retail companies and a bank); executive experience (including at a retail company)

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Trustee and Officer Information


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

INDEPENDENT TRUSTEES continued

Richard A. Goglia (1951)	Trustee since 2015 Audit Committee Member	Retired; formerly Vice President and Treasurer of Raytheon Company (defense)	51 None	Experience on the Board and executive experience (including his role as vice president and treasurer of a defense company and experience at a financial services company)

Wendell J. Knox (1948)	Trustee since 2009 Contract Review Committee Member and Governance Committee Member	Director of Abt Associates Inc. (research and consulting)	51 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the boards of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

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Trustee and Officer Information


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

INDEPENDENT TRUSTEES continued

Martin T. Meehan (1956)	Trustee since 2012 Audit Committee Member	President, University of Massachusetts; formerly, Chancellor and faculty member, University of Massachusetts Lowell	51 None	Significant experience on the Board and on the boards of other business organizations; experience as President of the University of Massachusetts; government experience (including as a member of the U.S. House of Representatives); academic experience

Maureen B. Mitchell (1951)	Trustee since 2017 Contract Review Committee Member	Retired; formerly President, Global Sales and Marketing, GE Asset Management, Inc. (financial services)	51 Director, Sterling Bancorp (Bank)	Experience on the Board and on the boards of other business organizations; financial services industry and executive experience (including role as president of global sales and marketing at a financial services company)

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Trustee and Officer Information


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

INDEPENDENT TRUSTEES continued

James P. Palermo (1955)	Trustee since 2016 Contract Review Committee Member	Founding Partner, Breton Capital Management, LLC (private equity); Partner, STEP Partners, LLC (private equity); formerly, Chief Executive Officer of Global Client Management of The Bank of New York Mellon Corporation	51 Director, FutureFuel Corp. (Chemicals and Biofuels)	Experience on the Board and on the boards of other business organizations; financial services industry and executive experience (including roles as chief executive officer of client management and asset servicing for a banking and financial services company)

Erik R. Sirri (1958)	Trustee since 2009 Chairperson of the Audit Committee	Professor of Finance at Babson College	51 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

91 |

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 Chairperson of the Contract Review Committee and Governance Committee Member	Retired	51 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

Cynthia L. Walker (1956)	Trustee since 2005 Chairperson of the Governance Committee and Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine	51 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)

INTERESTED TRUSTEES

Kevin P. Charleston³ (1965) One Financial Center Boston, MA 02111	Trustee since 2015	President, Chief Executive Officer and Chairman of the Board of Directors; formerly, Chief Financial Officer, Loomis, Sayles & Company, L.P.	51 None	Experience on the Board; continuing service as President, Chief Executive Officer and Chairman of the Board of Directors of Loomis, Sayles & Company, L.P.

| 92

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 of Loomis Sayles Funds II since 2008; Chief Executive Officer of Loomis Sayles Funds II since 2015	President and Chief Executive Officer, Natixis Advisors, L.P., Natixis Distribution, L.P., Natixis Distribution Corporation and Chairman of the Board of Natixis Distribution Corporation	51 None	Significant experience on the Board; experience as President and Chief Executive Officer, Natixis Advisors, L.P., Natixis Distribution, L.P., Natixis Distribution Corporation and Chairman of the Board of Natixis Distribution Corporation

¹	Each trustee serves until retirement, resignation or removal from the Board. The current retirement age is 75. The position of Chairperson of the Board is appointed for a three-year term.

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

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

⁴

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

93 |

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

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

Russell L. Kane (1969)	Secretary, Clerk and Chief Legal Officer	Since July 2016	Executive Vice President, General Counsel, Secretary and Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.; formerly, Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.

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

Rosa Licea-Mailloux (1976)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Since July 2016	Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.; formerly, Associate General Counsel, Natixis 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. Previous positions during the past five years with Natixis Distribution, L.P., Natixis Advisors, L.P. or Loomis, Sayles & Company, L.P. are omitted, if not materially different from an officer’s current position with such entity.

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LOGO

Loomis Sayles Small Cap Growth Fund

Loomis Sayles Small Cap Value Fund

Loomis Sayles Small/Mid Cap Growth Fund

Annual Report

September 30, 2018



TABLE OF CONTENTS
Portfolio Review			1
Portfolio of Investments			22
Financial Statements			40
Notes to Financial Statements			52

LOOMIS SAYLES SMALL CAP GROWTH FUND


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

Investment Objective

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

Market Conditions

The domestic equity markets were strong during the period. In the small- and mid-cap segments of the market, growth-oriented stocks outperformed value stocks.

In particular, factors that typically favor growth managers were in favor during the period, and companies with the strongest sales growth outperformed slower-growing companies. Given the dominance of growth stocks, sectors such as information technology and healthcare, which are more growth-oriented areas, outperformed. More broadly, large-cap stocks outperformed small- and mid-cap stocks, as measured by the Russell indices.

Performance Results

For the 12-month period ending September 30, 2018, the Institutional Class shares of the Loomis Sayles Small Cap Growth Fund returned 29.77% at net asset value. The Fund outperformed its benchmark, the Russell 2000^® Growth Index, which returned 21.06%.

Explanation of Fund Performance

The Fund’s relative outperformance was driven primarily by stock selection in the healthcare, consumer discretionary, materials and information technology sectors.

The Fund’s top individual contributors to performance were Teledoc Health Inc., Inogen Inc. and RingCentral Inc. Teledoc is a leading company in the telemedicine market, providing patients with rapid access to healthcare via phone and video. The company reported very strong results with robust revenue growth driven by increasing subscriptions and total patient visits. Inogen manufactures and markets portable oxygen concentrators for patients on oxygen therapy. Results in the most recent quarter beat expectations as all segments of the business performed well, and sales were very strong in the United States and Europe. RingCentral is a provider of cloud-based business communications solutions. The secular shift from on-premises to cloud-based communications tools has been a tailwind, and the company has executed well in taking advantage of that shift. Core subscription growth was robust during the period, and the company continued to expand its share of the enterprise market.

1 |

Dermira Inc., WageWorks, Inc. and Mercury Systems Inc. were the individual largest detractors from performance during the period. Biotechnology company Dermira declined during the time period after announcing that two clinical trials had failed to meet their primary endpoints and that as a result, the company would abandon pursuit of the treatments. The resulting drop in the stock triggered our stop-loss, and Dermira was sold from the portfolio. Benefits administrator WageWorks declined after delaying a key company filing. Defense electronics contractor Mercury Systems declined during the quarter due to ongoing federal budget delays. The stock’s decline triggered our stop-loss, and it was sold from the portfolio.

Outlook

Over time, the market has followed the trajectory of earnings, with some volatility when the market overcorrects in both directions. Given the length of the expansion and bull market since 2009, and despite the fact that there was a notable pause in 2016, market participants have worried that the equity markets have overshot to the upside and are overdue for a correction. Based on recent favorable earnings growth and macroeconomic readings on the US economy, as well as the current outlook for the coming year, the overall market doesn’t appear to be particularly overvalued.

With these cornerstones in place, we feel that the market can continue to rise at a similar pace to earnings growth for the foreseeable future. However, higher interest rates, trade tensions, political instability, and sluggish international economic growth are all potential threats to the current positive market environment.

We see no reason to alter our philosophy and process of bottom-up investing in quality secular growth companies and using risk management tools to help control the volatility of the portfolio.

| 2

LOOMIS SAYLES SMALL CAP GROWTH FUND

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

September 30, 2008 through September 30, 2018²

LOGO

Top Ten Holdings as of September 30, 2018


	Security Name	% of net assets
1	PRA Health Sciences, Inc.		1.55	%
2	Insulet Corp.		1.43
3	HealthEquity, Inc.		1.43
4	Grand Canyon Education, Inc.		1.42
5	Teladoc Health, Inc.		1.42
6	Q² Holdings, Inc.		1.40
7	RealPage, Inc.		1.39
8	Proto Labs, Inc.		1.37
9	Novocure Ltd.		1.33
10	Planet Fitness, Inc., Class A		1.32

3 |

Average Annual Total Returns — September 30, 2018²


													Expense Ratios³
	1 year			5 years			10 years			Life of Class N			Gross			Net

Institutional Class (Inception 12/31/96)		29.77	%		12.47	%		13.75	%		—	%		0.95	%		0.95	%

Retail Class (Inception 12/31/96)		29.45			12.19			13.45			—			1.20			1.20

Class N (Inception 2/1/13)		29.93			12.59			—			16.37			0.82			0.82

Comparative Performance
Russell 2000^® Growth Index¹		21.06			12.14			12.65			14.81

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

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.

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

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense caps set to expire on 01/31/19. When a Fund’s expenses are below the cap, gross and net expense ratios will be the same. See Note 5 of the Notes to Financial Statements for more information about the Fund’s expense caps.

| 4

LOOMIS SAYLES SMALL CAP VALUE FUND


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

Investment Objective

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

Market Conditions

Domestic equity markets continued to move higher, aided by modest economic expansion in addition to a corporate tax rate cut which significantly boosted corporate earnings. Throughout most of the period, growth stocks significantly outperformed value stocks. Investors showed a preference for companies that achieved faster revenue growth and stronger earnings, while valuations had little influence on stock performance.

During the second quarter of 2018, political rhetoric regarding international trade and import tariffs resulted in lowered global growth expectations and a stronger US dollar. Investors repositioned their portfolios toward a more domestic focus, selling large-cap equities and buying small-cap equities, mostly using index funds and ETFs. The result was a shift in small-cap leadership into the stocks with the smallest market caps, and lower quality companies with little or no earnings were the strongest performers.

The Federal Reserve raised interest rates multiple times during the period and moved from an accommodative monetary policy to a more normalized posture. Interest-sensitive sectors such as REITs and utilities lagged the performance of the overall market.

Performance Results

For the 12 months ended September 30, 2018, Institutional Class shares of Loomis Sayles Small Cap Value Fund returned 6.21% at net asset value. The Fund underperformed its benchmark, the Russell 2000^® Value Index, which returned 9.33%.

Explanation of Fund Performance

The Fund’s underperformance was primarily due to stock selection despite making favorable sector allocations. The Fund performed well versus the benchmark for the majority of the period. However, the Fund handily underperformed late in the period, when investors using passive strategies invested heavily in small-cap equities in a macro-driven market rotation. This produced outsized returns for smaller, less liquid stocks, including many companies with low or depressed earnings. The Fund had very little exposure to stocks with those characteristics, detracting from relative performance and more than offsetting the outperformance of the Fund during the remainder of the period.

5 |

Weak stock selection within the energy and consumer discretionary sectors detracted from returns versus the benchmark, as did an overweight position to the information technology sector. Our oilfield services holdings within energy failed to keep pace with a steady improvement in oil prices, as competitive dynamics within the industry weighed on performance. Among consumer discretionary stocks, a handful of company-specific disappointments detracted from performance, as did the Fund’s lack of exposure to the fundamentally challenged retail, restaurant, textile and apparel industries, all of which rallied sharply during the spring of 2018.

Specific holdings that were the biggest detractors from the Fund’s performance were RPC, Inc., Horizon Global Corporation and Houghton Mifflin Harcourt. RPC is a provider of pressure pumping and other oilfield services. The stock underperformed as investors became concerned about industry capacity growth and management’s preference for shorter-term contracts, which negatively impacted revenue in a declining price environment.

Horizon Global manufactures towing and trailering accessories for the automotive market. Revenue during the period was negatively impacted by retailers decreasing inventory, and profitability was hurt by rising materials costs. This resulted in a decline in cash flow that Horizon Global had originally planned to use to pay down debt.

Houghton Mifflin operates as a global education and learning company. The company lost market share in a declining education book market during 2017, and that caused significant underperformance in the stock during the second half of 2017 and early 2018.

Sector allocation versus the benchmark was positive in both the real estate and industrials sectors, while strong stock selection in the information technology and industrials sectors also added to relative performance. Leading contributors among technology stocks were data services stocks with steady growth as well as internet and media-related holdings. Among industrials, top performers were steady growth, less economically cyclical professional services holdings.

Among individual names, Insperity, Inc., WEX Inc. and Mellanox Technologies, Ltd. had the largest positive stock contribution to the Fund’s performance. Insperity is a provider of human resource services including payroll, benefits administration, workers’ compensation and recruiting to small and medium-sized businesses. The company extended its streak to five consecutive quarters of materially exceeding consensus earnings estimates, reflecting favorable employment trends, strong customer retention, improved sales productivity and excellent cost management.

WEX Inc. is a leading outsourced service provider of business-to-business payment solutions for the truck fleet, corporate, and health & employee benefit industries. WEX exhibited strong performance during the period largely due to growth in transactions, new business opportunities and higher fuel prices. Recently acquired high-profile customers

| 6

LOOMIS SAYLES SMALL CAP VALUE FUND

included Verizon, Shell, and Chevron, as well as some government fleet contracts. While there are some initial costs associated with new business, the wins provided evidence of future revenue and earnings growth.

Mellanox Technologies is the leading provider of interconnect products used in high performance computing. As artificial intelligence and flash memory continued their growth, data centers have required higher performance interconnects, and Mellanox is well positioned to benefit from this trend. In addition, profitability has increased faster than sales due to a renewed focus on lowering operating costs.

Outlook

The Small Cap Value fund seeks potential investments in smaller companies where the stock price and valuation do not accurately reflect our assessment of the underlying value of the corporate enterprise due to one of these market inefficiencies: a misunderstood franchise, an underfollowed stock or a company in the midst of a special situation.

We look for trustworthy and capable management teams whose interests are aligned with shareholders, as well as fundamentally sound business models with sustainable and understandable advantages that could lead to growth in value over time.

We apply these principles consistently regardless of the market environment. With a margin of safety and a proper time horizon, our goal is to achieve an attractive total return for our investors, while managing to an appropriate level of risk.

7 |

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

September 30, 2008 through September 30, 2018³

LOGO

See notes to chart on page 9.

Top Ten Holdings as of September 30, 2018


	Security Name	% of net assets
1	Littelfuse, Inc.		1.51	%
2	KAR Auction Services, Inc.		1.30
3	Popular, Inc.		1.21
4	ALLETE, Inc.		1.17
5	WEX, Inc.		1.13
6	Viad Corp.		1.12
7	Euronet Worldwide, Inc.		1.12
8	Wintrust Financial Corp.		1.12
9	Employers Holdings, Inc.		1.11
10	Churchill Downs, Inc.		1.08

| 8

LOOMIS SAYLES SMALL CAP VALUE FUND

Average Annual Total Returns — September 30, 2018³


													Expense Ratios⁴
	1 year			5 years			10 years			Life of Class N			Gross			Net

Institutional Class (Inception 5/13/91)		6.21	%		9.78	%		10.82	%		—	%		0.98	%		0.95	%

Retail Class (Inception 12/31/96)		5.95			9.51			10.54			—			1.23			1.20

Admin Class (Inception 1/2/98)		5.68			9.24			10.27			—			1.48			1.45

Class N (Inception 2/1/13)		6.28			9.86			—			11.67			0.88			0.88

Comparative Performance
Russell 2000^® Value Index¹		9.33			9.91			9.52			11.43
Russell 2000^® Index²		15.24			11.07			11.11			13.15

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

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.

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

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

⁴

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense caps set to expire on 01/31/19. When a Fund’s expenses are below the cap, gross and net expense ratios will be the same. See Note 5 of the Notes to Financial Statements for more information about the Fund’s expense caps.

9 |

LOOMIS SAYLES SMALL/MID CAP GROWTH FUND


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

Investment Objective

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

Market Conditions

The domestic equity markets were strong during the period. In the small- and mid-cap segments of the market, growth-oriented stocks outperformed value stocks.

Performance Results

For the 12-month period ending September 30, 2018, the Institutional Class shares of Loomis Sayles Small/Mid Cap Growth Fund returned 25.83% at net asset value. The Fund outperformed its benchmark, the Russell 2500™ Growth Index, which returned 23.13%.

Explanation of Performance

The Fund’s relative outperformance was driven primarily by stock selection, with particular strength in the healthcare and materials sectors. An underweight to the real estate sector also contributed to performance. However, stock selection in the financials and industrials sectors detracted from relative performance.

At an individual stock level, the Fund’s top contributors to performance were Planet Fitness Inc., WellCare Health Plans, Inc. and HubSpot Inc.

Fitness and exercise club operator Planet Fitness executed well and reported strong growth over the course of the period. Revenues increased, driven largely by the company’s franchise business. Margins expanded, and the company also increased its store base. WellCare Health Plans is a managed care company focused on government memberships with the majority of its business Medicaid. Earnings were strong in the most recent quarter, with improved performance across products and a favorable lower tax rate. Inbound marketing software platform Hubspot was the top performer for the quarter. The company announced new products and reported exceptionally strong results as sales grew, driven by subscription revenues.

| 10

LOOMIS SAYLES SMALL/MID CAP GROWTH FUND

Mercury Systems Inc., Healthcare Services Group Inc. and Advanced Energy Industries Inc. were the largest individual stock detractors from performance during the period. Defense electronics contractor Mercury Systems declined during the quarter due to ongoing federal budget delays. The stock fell significantly enough to trigger our stop-loss and was sold from the portfolio. Healthcare Services Group provides janitorial and other facility-related services to the healthcare industry, particularly nursing homes. The company reported very strong results late in the period, citing unprecedented demand, but a downgrade from a sell-side stock analyst resulted in the stock falling. Investors also reacted negatively when a significant customer filed for bankruptcy, leading to questions about the overall health of the industry. Semiconductor capital equipment company Advanced Energy Industries was down during the time period. The stock was a very strong performer early in the period, as were most in the semiconductor space. However, the semiconductor industry sold off toward the end of 2017, and Advanced Energy fell in sympathy.

Outlook

We see no reason to alter our philosophy and process of bottom-up investing in quality secular growth companies and using risk management tools to help control the volatility of the portfolio.

11 |

Hypothetical Growth of $1,000,000 Investment in Institutional Class Shares²

June 30, 2015 (inception) through September 30, 2018

LOGO

See notes to chart on page 13.

Top Ten Holdings as of September 30, 2018


	Security Name	% of net assets
1	PTC, Inc.		2.04	%
2	WellCare Health Plans, Inc.		1.81
3	ICON PLC		1.76
4	CoStar Group, Inc.		1.71
5	Grand Canyon Education, Inc.		1.71
6	HEICO Corp.		1.67
7	Guidewire Software, Inc.		1.66
8	Ingevity Corp.		1.65
9	HubSpot, Inc.		1.63
10	HealthEquity, Inc.		1.58

| 12

LOOMIS SAYLES SMALL/MID CAP GROWTH FUND

Average Annual Total Returns — September 30, 2018²


							Expense Ratios³
	1 year			Life of Fund			Gross			Net

Institutional Class (Inception 6/30/15)		25.83	%		14.47	%		1.57	%		0.85	%

Comparative Performance
Russell 2500^TM Growth Index¹		23.13			12.34

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

The Russell 2500^TM Growth Index measures the performance of the small-to-mid-cap growth segment of the US equity universe. It includes those Russell 2500^™ Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2500^™ Growth Index is constructed to provide a comprehensive and unbiased barometer of the small-to-mid-cap growth market. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-to-mid-cap opportunity set and that the represented companies continue to reflect growth characteristics. Indices are unmanaged.

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

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense caps set to expire on 01/31/19. When a Fund’s expenses are below the cap, gross and net expense ratios will be the same. See Note 5 of the Notes to Financial Statements for more information about the Fund’s expense caps.

13 |

ADDITIONAL INFORMATION

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

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

Additional Index Information

Proxy Voting Information

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

Quarterly Portfolio Schedules

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

UNDERSTANDING YOUR FUND’S EXPENSES

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

| 14

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, 2018 through September 30, 2018. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example $8,600 account value divided by $1,000 = 8.6) and multiply the result by the number in the Expenses Paid During Period column as shown below for your class.

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

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

Loomis Sayles Small Cap Growth Fund


Institutional Class	Beginning Account Value 4/1/2018		Ending Account Value 9/30/2018		Expenses Paid During Period* 4/1/2018 – 9/30/2018
Actual		$1,000.00		$1,185.60		$5.15
Hypothetical (5% return before expenses)		$1,000.00		$1,020.36		$4.76

Retail Class
Actual		$1,000.00		$1,184.00		$6.52
Hypothetical (5% return before expenses)		$1,000.00		$1,019.10		$6.02

Class N
Actual		$1,000.00		$1,186.40		$4.49
Hypothetical (5% return before expenses)		$1,000.00		$1,020.96		$4.15
* Expenses are equal to the Fund’s annualized expense ratio: 0.94%, 1.19% and 0.82% 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).

15 |

Loomis Sayles Small Cap Value Fund


Institutional Class	Beginning Account Value 4/1/2018		Ending Account Value 9/30/2018		Expenses Paid During Period^* 4/1/2018 – 9/30/2018
Actual		$1,000.00		$1,055.00		$4.64
Hypothetical (5% return before expenses)		$1,000.00		$1,020.56		$4.56

Retail Class
Actual		$1,000.00		$1,053.80		$5.92
Hypothetical (5% return before expenses)		$1,000.00		$1,019.30		$5.82

Admin Class
Actual		$1,000.00		$1,052.50		$7.20
Hypothetical (5% return before expenses)		$1,000.00		$1,018.05		$7.08

Class N
Actual		$1,000.00		$1,055.60		$4.23
Hypothetical (5% return before expenses)		$1,000.00		$1,020.96		$4.15
* Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.90%, 1.15%, 1.40% and 0.82% 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).

Loomis Sayles Small/Mid Cap Growth Fund


Institutional Class	Beginning Account Value 4/1/2018		Ending Account Value 9/30/2018		Expenses Paid During Period^* 4/1/2018 – 9/30/2018
Actual		$1,000.00		$1,141.50		$4.56
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) of 0.85%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

| 16

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

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

17 |

Fund’s performance and expense differentials against each Fund’s peer group/category, performance ratings provided by a third-party, total return information for various periods, and third-party performance rankings for various periods comparing a Fund against similarly categorized funds. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review Committee and/or the full Board, and Funds identified as presenting possible performance concerns may be subject to more frequent Board or Committee 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.

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.

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 reviewed data prepared by an independent third party that analyzed the performance of the Funds using a variety of performance metrics, including metrics that measured the performance of the Funds on a risk adjusted basis.

The Board noted that, through December 31, 2017, each Fund’s one-, three- and five-year performance, as applicable, stated as percentile rankings within categories selected by the

| 18

independent third-party data provider was as follows (where the best performance would be in the first percentile of its category):


	One-Year		Three-Year		Five-Year
Loomis Sayles Small Cap Growth Fund		23%		40%		31%
Loomis Sayles Small Cap Value Fund		70%		35%		43%
Loomis Sayles Small/Mid Cap Growth Fund		10%		N/A		N/A

In the case of each Fund that had performance that lagged that of a relevant category median as determined by the independent third party for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Agreements. These factors included: (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 performance, although lagging in certain periods, was stronger over the long term relative to its category; and (3) that the Fund’s net expense ratio was below the median for a peer group of funds.

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 and administrative services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Adviser to comparable accounts (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets and the greater regulatory costs associated with the management of such assets. In evaluating each Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund and the need for the Adviser to offer competitive compensation and the potential need to expend additional resources to the extent the 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

19 |

family. They noted that all of the Funds have expense caps in place, and they considered the amounts waived or reimbursed by the Adviser for certain Funds under their caps. The Trustees also considered that Loomis Sayles Small Cap Growth Fund’s current expenses are below its cap. The Trustees noted that the Funds had total advisory fee rates that were below the medians of their respective peer groups of funds.

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

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense 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 although none of the Funds’ management fees were subject to breakpoints, each of the Funds 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 on a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

| 20

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.

•

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.

21 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Growth Fund


Shares		Description	Value (†)

	Common Stocks – 96.0% of Net Assets

		Aerospace & Defense – 3.4%
	236,528	AAR Corp.	$	11,327,326
	299,398	Astronics Corp.(a)		13,023,813
	244,303	Hexcel Corp.		16,380,516
	212,083	KLX, Inc.(a)		13,314,571

				54,046,226

		Banks – 3.6%
	221,278	Chemical Financial Corp.		11,816,245
	245,125	Pacific Premier Bancorp, Inc.(a)		9,118,650
	200,570	Pinnacle Financial Partners, Inc.		12,064,285
	324,142	Renasant Corp.		13,357,892
	159,604	UMB Financial Corp.		11,315,924

				57,672,996

		Beverages – 0.8%
	159,978	MGP Ingredients, Inc.		12,635,062

		Biotechnology – 4.7%
	140,093	Agios Pharmaceuticals, Inc.(a)		10,803,972
	276,074	Aimmune Therapeutics, Inc.(a)		7,531,299
	117,591	Argenx SE, ADR(a)		8,918,101
	277,121	Genomic Health, Inc.(a)		19,459,437
	185,619	Global Blood Therapeutics, Inc.(a)		7,053,522
	609,861	Ironwood Pharmaceuticals, Inc.(a)		11,258,034
	244,826	Xencor, Inc.(a)		9,540,869

				74,565,234

		Building Products – 1.9%
	187,339	Patrick Industries, Inc.(a)		11,090,469
	252,302	Trex Co., Inc.(a)		19,422,208

				30,512,677

		Capital Markets – 1.5%
	291,250	Artisan Partners Asset Management, Inc., Class A		9,436,500
	76,101	MarketAxess Holdings, Inc.		13,583,268

				23,019,768

		Chemicals – 1.2%
	193,693	Ingevity Corp.(a)		19,733,443

		Construction & Engineering – 1.7%
	527,405	Primoris Services Corp.		13,090,192
	794,882	Willscot Corp.(a)		13,632,226

				26,722,418

		Consumer Finance – 1.2%
	214,699	Green Dot Corp., Class A(a)		19,069,565

See accompanying notes to financial statements.

| 22

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Distributors – 1.2%
	117,815	Pool Corp.	$	19,660,967

		Diversified Consumer Services – 4.3%
	119,684	Bright Horizons Family Solutions, Inc.(a)		14,103,563
	507,445	Chegg, Inc.(a)		14,426,661
	199,300	Grand Canyon Education, Inc.(a)		22,481,040
	1,097,047	Laureate Education, Inc., Class A(a)		16,938,406

				67,949,670

		Diversified Telecommunication Services – 1.0%
	293,193	Cogent Communications Holdings, Inc.		16,360,169

		Electrical Equipment – 1.2%
	329,973	Generac Holdings, Inc.(a)		18,613,777

		Energy Equipment & Services – 1.8%
	437,772	Cactus, Inc., Class A(a)		16,757,912
	177,396	Dril-Quip, Inc.(a)		9,268,941
	84,773	KLX Energy Services Holdings, Inc.(a)		2,713,584

				28,740,437

		Entertainment – 0.5%
	316,346	IMAX Corp.(a)		8,161,727

		Food & Staples Retailing – 0.5%
	211,900	Chefs’ Warehouse, Inc. (The)(a)		7,702,565

		Food Products – 0.7%
	293,791	Freshpet, Inc.(a)		10,782,130

		Health Care Equipment & Supplies – 10.1%
	521,947	AtriCure, Inc.(a)		18,283,803
	59,505	Inogen, Inc.(a)		14,526,361
	214,027	Insulet Corp.(a)		22,676,161
	191,749	iRhythm Technologies, Inc.(a)		18,150,960
	211,186	Merit Medical Systems, Inc.(a)		12,977,380
	86,343	Neogen Corp.(a)		6,176,115
	401,665	Novocure Ltd.(a)		21,047,246
	116,993	Penumbra, Inc.(a)		17,513,852
	156,165	Tactile Systems Technology, Inc.(a)		11,095,523
	595,956	Wright Medical Group NV(a)		17,294,643

				159,742,044

		Health Care Providers & Services – 4.8%
	115,423	Amedisys, Inc.(a)		14,423,258
	281,830	AMN Healthcare Services, Inc.(a)		15,416,101
	206,177	BioTelemetry, Inc.(a)		13,288,108
	239,518	HealthEquity, Inc.(a)		22,612,894

See accompanying notes to financial statements.

23 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Health Care Providers & Services – continued
	295,660	Tivity Health, Inc.(a)	$	9,505,469

				75,245,830

		Health Care Technology – 3.6%
	256,638	Medidata Solutions, Inc.(a)		18,814,131
	259,254	Teladoc Health, Inc.(a)		22,386,583
	431,941	Vocera Communications, Inc.(a)		15,800,402

				57,001,116

		Hotels, Restaurants & Leisure – 2.6%
	385,517	Planet Fitness, Inc., Class A(a)		20,829,483
	291,773	Wingstop, Inc.		19,919,343

				40,748,826

		Insurance – 2.0%
	275,401	Kinsale Capital Group, Inc.		17,587,108
	395,460	Trupanion, Inc.(a)		14,129,786

				31,716,894

		IT Services – 4.9%
	119,236	Euronet Worldwide, Inc.(a)		11,949,832
	312,408	Evo Payments, Inc., Class A(a)		7,466,551
	305,005	InterXion Holding NV(a)		20,526,836
	334,608	Virtusa Corp.(a)		17,971,796
	389,180	WNS Holdings Ltd., ADR(a)		19,750,885

				77,665,900

		Leisure Products – 0.4%
	123,638	Malibu Boats, Inc., Class A(a)		6,765,471

		Life Sciences Tools & Services – 1.6%
	222,399	PRA Health Sciences, Inc.(a)		24,506,146

		Machinery – 5.0%
	227,707	Albany International Corp., Class A		18,102,706
	690,971	Harsco Corp.(a)		19,727,222
	133,813	Proto Labs, Inc.(a)		21,644,253
	125,291	RBC Bearings, Inc.(a)		18,838,755

				78,312,936

		Multiline Retail – 1.3%
	213,429	Ollie’s Bargain Outlet Holdings, Inc.(a)		20,510,527

		Oil, Gas & Consumable Fuels – 0.7%
	231,370	PDC Energy, Inc.(a)		11,327,875

		Pharmaceuticals – 1.9%
	212,531	Aerie Pharmaceuticals, Inc.(a)		13,081,283

See accompanying notes to financial statements.

| 24

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Growth Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Pharmaceuticals – continued
	328,179	Supernus Pharmaceuticals, Inc.(a)	$	16,523,813

				29,605,096

		Semiconductors & Semiconductor Equipment – 2.6%
	128,431	MKS Instruments, Inc.		10,293,744
	130,673	Monolithic Power Systems, Inc.		16,403,382
	165,286	Silicon Laboratories, Inc.(a)		15,173,255

				41,870,381

		Software – 14.5%
	173,434	2U, Inc.(a)		13,040,503
	148,764	Blackbaud, Inc.		15,096,571
	305,154	Envestnet, Inc.(a)		18,599,136
	462,441	Five9, Inc.(a)		20,204,047
	198,702	Guidewire Software, Inc.(a)		20,070,889
	114,601	HubSpot, Inc.(a)		17,299,021
	482,252	Mimecast Ltd.(a)		20,196,714
	364,885	Q2 Holdings, Inc.(a)		22,093,787
	496,007	Rapid7, Inc.(a)		18,312,578
	334,608	RealPage, Inc.(a)		22,050,667
	214,326	RingCentral, Inc., Class A(a)		19,943,034
	216,419	Talend S.A., ADR(a)		15,093,061
	105,406	Varonis Systems, Inc.(a)		7,720,990

				229,720,998

		Specialty Retail – 2.2%
	468,796	At Home Group, Inc.(a)		14,781,138
	425,960	National Vision Holdings, Inc.(a)		19,227,834

				34,008,972

		Textiles, Apparel & Luxury Goods – 4.2%
	196,833	Columbia Sportswear Co.		18,319,247
	682,748	Crocs, Inc.(a)		14,535,705
	385,218	G-III Apparel Group Ltd.(a)		18,563,655
	276,523	Steven Madden Ltd.		14,628,067

				66,046,674

		Thrifts & Mortgage Finance – 0.6%
	196,758	Essent Group Ltd.(a)		8,706,542

		Trading Companies & Distributors – 1.8%
	507,220	BMC Stock Holdings, Inc.(a)		9,459,653
	246,770	SiteOne Landscape Supply, Inc.(a)		18,591,652

				28,051,305


		Total Common Stocks (Identified Cost $976,295,315)		1,517,502,364

See accompanying notes to financial statements.

25 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Growth Fund – continued


Principal Amount		Description	Value (†)

	Short-Term Investments – 4.1%
$	65,314,588	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/28/2018 at 1.300% to be repurchased at $65,321,664 on 10/01/2018 collateralized by $67,080,000 U.S. Treasury Bond, 3.125% due 8/15/2044 valued at $66,623,319 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $65,314,588)	$	65,314,588

		Total Investments – 100.1% (Identified Cost $1,041,609,903)		1,582,816,952
		Other assets less liabilities—(0.1)%		(1,753,311	)

		Net Assets – 100.0%	$	1,581,063,641


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	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, 2018


Software	14.5	%
Health Care Equipment & Supplies	10.1
Machinery	5.0
IT Services	4.9
Health Care Providers & Services	4.8
Biotechnology	4.7
Diversified Consumer Services	4.3
Textiles, Apparel & Luxury Goods	4.2
Banks	3.6
Health Care Technology	3.6
Aerospace & Defense	3.4
Semiconductors & Semiconductor Equipment	2.6
Hotels, Restaurants & Leisure	2.6
Specialty Retail	2.2
Insurance	2.0
Other Investments, less than 2% each	23.5
Short-Term Investments	4.1

Total Investments	100.1
Other assets less liabilities	(0.1	)

Net Assets	100.0	%

See accompanying notes to financial statements.

| 26

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Value Fund


Shares		Description	Value (†)

	Common Stocks – 99.1% of Net Assets

		Aerospace & Defense – 1.7%
	255,946	Aerojet Rocketdyne Holdings, Inc.(a)	$	8,699,605
	123,267	BWX Technologies, Inc.		7,709,118

				16,408,723

		Auto Components – 2.0%
	227,260	Cooper Tire & Rubber Co.		6,431,458
	95,349	Fox Factory Holding Corp.(a)		6,679,198
	75,759	LCI Industries		6,272,845

				19,383,501

		Banks – 16.7%
	246,943	BancorpSouth Bank		8,075,036
	101,926	Bank OZK		3,869,111
	187,369	Bryn Mawr Bank Corp.		8,787,606
	93,559	Carolina Financial Corp.		3,529,046
	230,414	Cathay General Bancorp		9,548,356
	295,898	CenterState Bank Corp.		8,299,939
	176,008	Chemical Financial Corp.		9,398,827
	362,569	CVB Financial Corp.		8,092,540
	286,314	First Financial Bancorp		8,503,526
	113,874	First Financial Bankshares, Inc.		6,729,953
	364,502	Home BancShares, Inc.		7,982,594
	111,663	IBERIABANK Corp.		9,083,785
	168,893	PacWest Bancorp		8,047,751
	120,553	Pinnacle Financial Partners, Inc.		7,251,263
	230,444	Popular, Inc.		11,810,255
	140,579	Prosperity Bancshares, Inc.		9,749,154
	53,627	Signature Bank		6,158,525
	91,385	Texas Capital Bancshares, Inc.(a)		7,552,970
	250,033	Triumph Bancorp, Inc.(a)		9,551,261
	127,878	Wintrust Financial Corp.		10,861,957

				162,883,455

		Beverages – 0.8%
	498,104	Cott Corp.		8,044,380

		Building Products – 1.4%
	120,321	Armstrong World Industries, Inc.(a)		8,374,342
	77,074	Masonite International Corp.(a)		4,940,443

				13,314,785

		Capital Markets – 1.4%
	324,184	Donnelley Financial Solutions, Inc.(a)		5,809,377
	147,790	Stifel Financial Corp.		7,575,716

				13,385,093

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Chemicals – 4.3%
	269,946	AdvanSix, Inc.(a)	$	9,164,667
	70,384	Ashland Global Holdings, Inc.		5,902,402
	93,480	Cabot Corp.		5,863,066
	87,316	Ingevity Corp.(a)		8,895,754
	89,569	Minerals Technologies, Inc.		6,054,864
	83,057	WR Grace & Co.		5,935,253

				41,816,006

		Commercial Services & Supplies – 3.8%
	107,350	Clean Harbors, Inc.(a)		7,684,113
	211,905	KAR Auction Services, Inc.		12,648,610
	232,661	Kimball International, Inc.	��	3,897,072
	190,190	LSC Communications, Inc.		2,103,501
	183,580	Viad Corp.		10,877,115

				37,210,411

		Communications Equipment – 1.0%
	279,340	Digi International, Inc.(a)		3,757,123
	518,099	Viavi Solutions, Inc.(a)		5,875,243

				9,632,366

		Construction & Engineering – 0.3%
	77,601	MYR Group, Inc.(a)		2,532,897

		Construction Materials – 0.2%
	43,734	U.S. Concrete, Inc.(a)		2,005,204

		Consumer Finance – 0.7%
	195,823	PRA Group, Inc.(a)		7,049,628

		Distributors – 0.2%
	53,467	Core-Mark Holding Co., Inc.		1,815,739

		Diversified Consumer Services – 1.1%
	74,038	Adtalem Global Education, Inc.(a)		3,568,632
	121,764	ServiceMaster Global Holdings, Inc.(a)		7,553,021

				11,121,653

		Diversified Financial Services – 0.4%
	190,922	Cannae Holdings, Inc.(a)		3,999,816

		Electric Utilities – 1.2%
	152,301	ALLETE, Inc.		11,424,098

		Electrical Equipment – 0.7%
	228,520	TPI Composites, Inc.(a)		6,524,246

		Electronic Equipment, Instruments & Components – 4.5%
	97,683	Belden, Inc.		6,975,543

See accompanying notes to financial statements.

| 28

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Electronic Equipment, Instruments & Components – continued
	105,632	II-VI, Inc.(a)	$	4,996,393
	84,684	Kimball Electronics, Inc.(a)		1,664,041
	74,058	Littelfuse, Inc.		14,655,338
	131,419	Methode Electronics, Inc.		4,757,368
	46,883	Rogers Corp.(a)		6,906,803
	181,363	Vishay Intertechnology, Inc.		3,690,737

				43,646,223

		Energy Equipment & Services – 2.8%
	177,468	Apergy Corp.(a)		7,730,506
	280,567	C&J Energy Services, Inc.(a)		5,835,794
	62,228	KLX Energy Services Holdings, Inc.(a)		1,991,918
	94,020	Natural Gas Services Group, Inc.(a)		1,983,822
	151,990	Oil States International, Inc.(a)		5,046,068
	230,629	U.S. Silica Holdings, Inc.		4,342,744

				26,930,852

		Food Products – 3.1%
	161,073	Darling Ingredients, Inc.(a)		3,111,930
	50,327	J&J Snack Foods Corp.		7,593,841
	422,096	Nomad Foods Ltd.(a)		8,551,665
	76,267	Post Holdings, Inc.(a)		7,477,217
	523,103	SunOpta, Inc.(a)		3,844,807

				30,579,460

		Health Care Equipment & Supplies – 2.4%
	145,580	Avanos Medical, Inc.(a)		9,972,230
	100,331	Quidel Corp.(a)		6,538,571
	247,116	Varex Imaging Corp.(a)		7,082,345

				23,593,146

		Health Care Providers & Services – 0.7%
	126,877	AMN Healthcare Services, Inc.(a)		6,940,172

		Hotels, Restaurants & Leisure – 2.2%
	38,038	Churchill Downs, Inc.		10,563,153
	17,148	Cracker Barrel Old Country Store, Inc.		2,522,985
	79,269	Marriott Vacations Worldwide Corp.		8,858,311

				21,944,449

		Household Durables – 0.7%
	54,501	Helen of Troy Ltd.(a)		7,134,181

		Household Products – 0.6%
	73,890	Spectrum Brands Holdings, Inc.		5,521,061

See accompanying notes to financial statements.

29 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Independent Power & Renewable Electricity Producers – 0.7%
	135,835	NextEra Energy Partners LP	$	6,587,997

		Industrial Conglomerates – 0.9%
	188,386	Raven Industries, Inc.		8,618,659

		Insurance – 3.7%
	238,505	Employers Holdings, Inc.		10,804,276
	135,491	First American Financial Corp.		6,989,981
	127,922	ProAssurance Corp.		6,005,938
	64,717	Reinsurance Group of America, Inc.		9,355,490
	58,123	Stewart Information Services Corp.		2,616,116

				35,771,801

		Interactive Media & Services – 0.4%
	19,703	IAC/InterActiveCorp(a)		4,270,034

		IT Services – 4.9%
	383,813	Conduent, Inc.(a)		8,643,469
	93,053	CSG Systems International, Inc.		3,735,147
	108,400	Euronet Worldwide, Inc.(a)		10,863,848
	143,583	Genpact Ltd.		4,395,076
	340,535	Perspecta, Inc.		8,758,560
	54,566	WEX, Inc.(a)		10,954,670

				47,350,770

		Life Sciences Tools & Services – 0.9%
	133,497	Cambrex Corp.(a)		9,131,195

		Machinery – 6.3%
	44,493	Alamo Group, Inc.		4,076,004
	32,612	Albany International Corp., Class A		2,592,654
	117,459	Altra Industrial Motion Corp.		4,851,057
	199,235	Columbus McKinnon Corp.		7,877,752
	96,109	EnPro Industries, Inc.		7,009,229
	201,567	Evoqua Water Technologies Corp.(a)		3,583,861
	63,972	John Bean Technologies Corp.		7,631,860
	26,099	Kadant, Inc.		2,814,777
	36,547	RBC Bearings, Inc.(a)		5,495,207
	81,278	Standex International Corp.		8,473,231
	63,315	WABCO Holdings, Inc.(a)		7,467,371

				61,873,003

		Marine – 0.5%
	55,258	Kirby Corp.(a)		4,544,970

		Media – 2.8%
	128,493	Emerald Expositions Events, Inc.		2,117,565
	169,129	GCI Liberty, Inc., Class A(a)		8,625,579

See accompanying notes to financial statements.

| 30

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Media – continued
	592,370	Gray Television, Inc.(a)	$	10,366,475
	97,470	John Wiley & Sons, Inc., Class A		5,906,682

				27,016,301

		Metals & Mining – 0.4%
	507,316	Ferroglobe R&W Trust(a)(b)(c)(d)		—
	111,780	Haynes International, Inc.		3,968,190

				3,968,190

		Multi-Utilities – 0.8%
	134,804	NorthWestern Corp.		7,907,603

		Multiline Retail – 0.5%
	118,938	Big Lots, Inc.		4,970,419

		Oil, Gas & Consumable Fuels – 1.5%
	4,866	Arch Coal, Inc., Class A		435,020
	332,301	Gulfport Energy Corp.(a)		3,459,253
	468,167	QEP Resources, Inc.(a)		5,299,651
	623,853	SRC Energy, Inc.(a)		5,546,053

				14,739,977

		Pharmaceuticals – 1.5%
	171,718	Catalent, Inc.(a)		7,821,755
	182,636	Prestige Consumer Healthcare, Inc.(a)		6,920,078

				14,741,833

		Professional Services – 1.7%
	69,320	Insperity, Inc.		8,176,294
	175,860	Korn/Ferry International		8,659,346

				16,835,640

		REITs – Apartments – 0.5%
	123,273	American Campus Communities, Inc.		5,073,917

		REITs – Diversified – 1.0%
	150,675	CorePoint Lodging, Inc.		2,930,629
	103,633	CyrusOne, Inc.		6,570,332

				9,500,961

		REITs – Health Care – 0.4%
	168,558	Sabra Health Care REIT, Inc.		3,897,061

		REITs – Hotels – 0.5%
	197,797	Hersha Hospitality Trust		4,484,058

		REITs – Mortgage – 0.7%
	571,570	iStar, Inc.		6,384,437

See accompanying notes to financial statements.

31 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		REITs – Office Property – 0.7%
	190,298	JBG SMITH Properties	$	7,008,675

		REITs – Shopping Centers – 1.1%
	556,780	Retail Opportunity Investments Corp.		10,395,083

		REITs – Single Tenant – 0.5%
	107,615	National Retail Properties, Inc.		4,823,304

		REITs – Storage – 0.9%
	312,934	CubeSmart		8,928,007

		REITs – Warehouse/Industrials – 0.7%
	208,288	Rexford Industrial Realty, Inc.		6,656,884

		Road & Rail – 1.6%
	80,814	Genesee & Wyoming, Inc., Class A(a)		7,353,266
	50,832	Old Dominion Freight Line, Inc.		8,197,168

				15,550,434

		Semiconductors & Semiconductor Equipment – 2.7%
	100,058	Advanced Energy Industries, Inc.(a)		5,167,996
	129,077	Mellanox Technologies Ltd.(a)		9,480,705
	99,552	Semtech Corp.(a)		5,535,091
	255,451	Ultra Clean Holdings, Inc.(a)		3,205,910
	94,179	Versum Materials, Inc.		3,391,386

				26,781,088

		Software – 2.2%
	115,902	CommVault Systems, Inc.(a)		8,113,140
	35,528	LogMeIn, Inc.		3,165,545
	321,372	TiVo Corp.		4,001,081
	116,593	Verint Systems, Inc.(a)		5,841,309

				21,121,075

		Specialty Retail – 1.2%
	112,222	Aaron’s, Inc.		6,111,610
	53,284	Genesco, Inc.(a)		2,509,677
	152,895	Sally Beauty Holdings, Inc.(a)		2,811,739

				11,433,026

		Technology Hardware, Storage & Peripherals – 0.3%
	143,486	Cray, Inc.(a)		3,084,949

		Thrifts & Mortgage Finance – 1.7%
	64,242	Federal Agricultural Mortgage Corp., Class C		4,636,988
	65,990	Meta Financial Group, Inc.		5,454,073

See accompanying notes to financial statements.

| 32

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Value Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Thrifts & Mortgage Finance – continued
	251,288	OceanFirst Financial Corp.	$	6,840,059

				16,931,120

		Total Common Stocks (Identified Cost $651,374,613)		965,224,016


	Closed-End Investment Companies – 0.3%
	212,488	Hercules Capital, Inc. (Identified Cost $2,911,138)		2,796,342


	Principal Amount

	Short-Term Investments – 0.7%
$	6,856,247	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/28/2018 at 1.300% to be repurchased at $6,856,990 on 10/01/2018 collateralized by $7,045,000 U.S. Treasury Bond, 3.125% due 8/15/2044 valued at $6,997,038 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $6,856,247)		6,856,247

		Total Investments – 100.1% (Identified Cost $661,141,998)		974,876,605
		Other assets less liabilities—(0.1)%		(1,192,106	)

		Net Assets – 100.0%	$	973,684,499


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Non-income producing security.
	(b)	Illiquid security. (Unaudited)
	(c)	Security classified as fair valued pursuant to the Fund’s pricing policies and procedures. At September 30, 2018, the value of this security amounted to $0. See Note 2 of Notes to Financial Statements.
	(d)	Security subject to restrictions on resale. This security was acquired on November 29, 2016 at a cost of $0. At September 30, 2018, the value of this security amounted to $0.

	REITs	Real Estate Investment Trusts

See accompanying notes to financial statements.

33 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small Cap Value Fund – continued

Industry Summary at September 30, 2018


Banks	16.7	%
Machinery	6.3
IT Services	4.9
Electronic Equipment, Instruments & Components	4.5
Chemicals	4.3
Commercial Services & Supplies	3.8
Insurance	3.7
Food Products	3.1
Media	2.8
Energy Equipment & Services	2.8
Semiconductors & Semiconductor Equipment	2.7
Health Care Equipment & Supplies	2.4
Hotels, Restaurants & Leisure	2.2
Software	2.2
Auto Components	2.0
Other Investments, less than 2% each	35.0
Short-Term Investments	0.7

Total Investments	100.1
Other assets less liabilities	(0.1	)

Net Assets	100.0	%

See accompanying notes to financial statements.

| 34

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small/Mid Cap Growth Fund


Shares		Description	Value (†)

	Common Stocks – 97.5% of Net Assets

		Aerospace & Defense – 3.9%
	2,519	BWX Technologies, Inc.	$	157,538
	3,147	HEICO Corp.		291,444
	3,403	Hexcel Corp.		228,171

				677,153

		Air Freight & Logistics – 1.4%
	2,227	XPO Logistics, Inc.(a)		254,257

		Banks – 3.6%
	3,816	Columbia Banking System, Inc.		147,946
	6,375	Home BancShares, Inc.		139,613
	2,119	UMB Financial Corp.		150,237
	3,447	Western Alliance Bancorp(a)		196,100
			��
				633,896

		Biotechnology – 4.5%
	933	Argenx SE, ADR(a)		70,759
	1,870	Ascendis Pharma AS, ADR(a)		132,508
	1,791	Blueprint Medicines Corp.(a)		139,805
	9,726	Ironwood Pharmaceuticals, Inc.(a)		179,542
	2,144	Neurocrine Biosciences, Inc.(a)		263,605

				786,219

		Capital Markets – 2.9%
	986	MarketAxess Holdings, Inc.		175,991
	938	Morningstar, Inc.		118,094
	1,171	MSCI, Inc.		207,747

				501,832

		Chemicals – 1.6%
	2,832	Ingevity Corp.(a)		288,524

		Commercial Services & Supplies – 2.7%
	4,283	KAR Auction Services, Inc.		255,652
	5,870	Ritchie Bros. Auctioneers, Inc.		212,083

				467,735

		Communications Equipment – 0.8%
	4,264	Ciena Corp.(a)		133,207

		Construction & Engineering – 1.3%
	12,810	Willscot Corp.(a)		219,692

		Consumer Finance – 0.5%
	7,890	SLM Corp.(a)		87,974

		Diversified Consumer Services – 2.9%
	1,771	Bright Horizons Family Solutions, Inc.(a)		208,695

See accompanying notes to financial statements.

35 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small/Mid Cap Growth Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Diversified Consumer Services – continued
	2,655	Grand Canyon Education, Inc.(a)	$	299,484

				508,179

		Diversified Telecommunication Services – 1.4%
	4,276	Cogent Communications Holdings, Inc.		238,601

		Electrical Equipment – 2.2%
	4,185	Generac Holdings, Inc.(a)		236,076
	2,899	Sensata Technologies Holding PLC(a)		143,645

				379,721

		Electronic Equipment, Instruments & Components – 4.1%
	4,056	FLIR Systems, Inc.		249,322
	4,679	National Instruments Corp.		226,136
	5,776	Trimble, Inc.(a)		251,025

				726,483

		Energy Equipment & Services – 2.5%
	3,961	Cactus, Inc., Class A(a)		151,627
	2,643	Dril-Quip, Inc.(a)		138,097
	4,211	Oil States International, Inc.(a)		139,805

				429,529

		Entertainment – 1.5%
	4,870	Live Nation Entertainment, Inc.(a)		265,269

		Food & Staples Retailing – 1.0%
	6,494	Sprouts Farmers Market, Inc.(a)		178,001

		Food Products – 0.7%
	6,430	Nomad Foods Ltd.(a)		130,272

		Health Care Equipment & Supplies – 4.8%
	3,150	Merit Medical Systems, Inc.(a)		193,568
	1,581	Penumbra, Inc.(a)		236,676
	1,321	West Pharmaceutical Services, Inc.		163,104
	8,272	Wright Medical Group NV(a)		240,053

				833,401

		Health Care Providers & Services – 4.2%
	2,933	HealthEquity, Inc.(a)		276,905
	1,448	LHC Group, Inc.(a)		149,129
	986	WellCare Health Plans, Inc.(a)		316,003

				742,037

		Health Care Technology – 2.8%
	2,890	Medidata Solutions, Inc.(a)		211,866
	2,512	Veeva Systems, Inc., Class A(a)		273,481

				485,347

See accompanying notes to financial statements.

| 36

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small/Mid Cap Growth Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Hotels, Restaurants & Leisure – 4.3%
	4,816	Planet Fitness, Inc., Class A(a)	$	260,209
	3,382	Texas Roadhouse, Inc.		234,339
	951	Vail Resorts, Inc.		260,973

				755,521

		Insurance – 1.2%
	2,709	Kemper Corp.		217,939

		IT Services – 5.4%
	4,318	Black Knight, Inc.(a)		224,320
	1,636	Broadridge Financial Solutions, Inc.		215,870
	1,771	EPAM Systems, Inc.(a)		243,867
	1,322	WEX, Inc.(a)		265,405

				949,462

		Life Sciences Tools & Services – 1.8%
	2,007	ICON PLC(a)		308,576

		Machinery – 4.0%
	3,875	Altra Industrial Motion Corp.		160,037
	6,440	Gardner Denver Holdings, Inc.(a)		182,510
	3,765	Sun Hydraulics Corp.		206,247
	1,362	WABCO Holdings, Inc.(a)		160,634

				709,428

		Oil, Gas & Consumable Fuels – 1.1%
	1,406	Diamondback Energy, Inc.		190,077

		Pharmaceuticals – 0.8%
	2,854	Zogenix, Inc.(a)		141,558

		Professional Services – 3.1%
	712	CoStar Group, Inc.(a)		299,638
	3,229	TransUnion		237,590

				537,228

		Real Estate Management & Development – 1.2%
	2,407	First Service Corp.		203,777

		Semiconductors & Semiconductor Equipment – 2.7%
	2,113	Advanced Energy Industries, Inc.(a)		109,136
	3,054	Semtech Corp.(a)		169,802
	2,052	Silicon Laboratories, Inc.(a)		188,374

				467,312

		Software – 14.2%
	2,048	Blackbaud, Inc.		207,831
	2,868	Guidewire Software, Inc.(a)		289,697
	1,887	HubSpot, Inc.(a)		284,843

See accompanying notes to financial statements.

37 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small/Mid Cap Growth Fund – continued


Shares		Description	Value (†)

	Common Stocks – continued

		Software – continued
	2,558	j2 Global, Inc.	$	211,930
	2,760	Paylocity Holding Corp.(a)		221,683
	3,358	PTC, Inc.(a)		356,586
	3,570	Talend S.A., ADR(a)		248,972
	921	Tyler Technologies, Inc.(a)		225,700
	756	Ultimate Software Group, Inc. (The)(a)		243,576
	2,693	Zendesk, Inc.(a)		191,203

				2,482,021

		Specialty Retail – 1.1%
	6,339	At Home Group, Inc.(a)		199,869

		Textiles, Apparel & Luxury Goods – 3.4%
	1,489	Carter’s, Inc.		146,815
	2,317	Columbia Sportswear Co.		215,643
	4,888	G-III Apparel Group Ltd.(a)		235,553

				598,011

		Trading Companies & Distributors – 1.9%
	8,202	BMC Stock Holdings, Inc.(a)		152,967
	2,330	SiteOne Landscape Supply, Inc.(a)		175,542

				328,509


		Total Common Stocks (Identified Cost $14,605,942)		17,056,617


	Principal Amount

	Short-Term Investments – 4.6%
$	807,593	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/28/2018 at 1.300%, to be repurchased at $807,681 on 10/01/2018 collateralized by $835,000 Federal Home Loan Mortgage Corp., 1.250% due 10/02/2019 valued at $828,460 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $807,593)		807,593


		Total Investments – 102.1% (Identified Cost $15,413,535)		17,864,210
		Other assets less liabilities—(2.1)%		(364,008	)

		Net Assets – 100.0%	$	17,500,202


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	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.
	SLM	Sallie Mae

See accompanying notes to financial statements.

| 38

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Small/Mid Cap Growth Fund – continued

Industry Summary at September 30, 2018


Software	14.2	%
IT Services	5.4
Health Care Equipment & Supplies	4.8
Biotechnology	4.5
Hotels, Restaurants & Leisure	4.3
Health Care Providers & Services	4.2
Electronic Equipment, Instruments & Components	4.1
Machinery	4.0
Aerospace & Defense	3.9
Banks	3.6
Textiles, Apparel & Luxury Goods	3.4
Professional Services	3.1
Diversified Consumer Services	2.9
Capital Markets	2.9
Health Care Technology	2.8
Commercial Services & Supplies	2.7
Semiconductors & Semiconductor Equipment	2.7
Energy Equipment & Services	2.5
Electrical Equipment	2.2
Other Investments, less than 2% each	19.3
Short-Term Investments	4.6

Total Investments	102.1
Other assets less liabilities	(2.1	)

Net Assets	100.0	%

See accompanying notes to financial statements.

39 |

Statements of Assets and Liabilities

September 30, 2018


	Small Cap Growth Fund		Small Cap Value Fund		Small/Mid Cap Growth Fund
ASSETS
Investments at cost	$	1,041,609,903	$	661,141,998	$	15,413,535
Net unrealized appreciation		541,207,049		313,734,607		2,450,675

Investments at value		1,582,816,952		974,876,605		17,864,210
Cash		312,566		—		—
Receivable for Fund shares sold		2,471,505		471,869		—
Receivable for securities sold		—		2,764,507		—
Dividends and interest receivable		162,275		777,425		3,855
Prepaid expenses (Note 7)		1,325		1,003		11

TOTAL ASSETS		1,585,764,623		978,891,409		17,868,076

LIABILITIES
Payable for securities purchased		2,422,947		3,610,774		259,842
Payable for Fund shares redeemed		971,642		634,375		36,891
Management fees payable (Note 5)		978,856		602,778		1,805
Deferred Trustees’ fees (Note 5)		164,348		227,098		19,751
Administrative fees payable (Note 5)		56,619		35,874		608
Payable to distributor (Note 5d)		13,202		9,225		4
Other accounts payable and accrued expenses		93,368		86,786		48,973

TOTAL LIABILITIES		4,700,982		5,206,910		367,874

NET ASSETS	$	1,581,063,641	$	973,684,499	$	17,500,202

NET ASSETS CONSIST OF:
Paid-in capital	$	920,641,911	$	553,853,198	$	10,456,036
Accumulated earnings		660,421,730		419,831,301		7,044,166

NET ASSETS	$	1,581,063,641	$	973,684,499	$	17,500,202


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Institutional Class:
Net assets	$	926,914,438	$	587,197,927	$	17,500,202

Shares of beneficial interest		29,379,668		16,648,221		1,129,883

Net asset value, offering and redemption price per share	$	31.55	$	35.27	$	15.49

Retail Class:
Net assets	$	136,414,867	$	208,310,491	$	—

Shares of beneficial interest		4,689,129		6,009,819		—

Net asset value, offering and redemption price per share	$	29.09	$	34.66	$	—

Admin Class shares:
Net assets	$	—	$	24,529,757	$	—

Shares of beneficial interest		—		737,821		—

Net asset value, offering and redemption price per share	$	—	$	33.25	$	—

Class N shares:
Net assets	$	517,734,336	$	153,646,324	$	—

Shares of beneficial interest		16,302,647		4,351,905		—

Net asset value, offering and redemption price per share	$	31.76	$	35.31	$	—

See accompanying notes to financial statements.

| 40

Statements of Operations

For the Year Ended September 30, 2018


	Small Cap Growth Fund			Small Cap Value Fund			Small/Mid Cap Growth Fund
INVESTMENT INCOME
Dividends	$	4,608,765		$	11,834,071		$	83,731
Interest		447,940			144,466			5,973
Less net foreign taxes withheld		—			(41,511	)		(792	)

		5,056,705			11,937,026			88,912

Expenses
Management fees (Note 5)		10,158,265			7,700,146			132,762
Service and distribution fees (Note 5)		293,140			718,104			—
Administrative fees (Note 5)		595,459			451,857			7,796
Trustees’ fees and expenses (Note 5)		64,117			60,413			17,074
Transfer agent fees and expenses (Notes 5 and 6)		1,131,161			806,991			2,320
Audit and tax services fees		40,857			41,832			41,086
Custodian fees and expenses		64,247			30,201			10,686
Legal fees		26,381			20,618			398
Registration fees		88,665			76,849			24,941
Shareholder reporting expenses		82,009			105,681			4,482
Miscellaneous expenses (Note 7)		42,388			39,442			11,606

Total expenses		12,586,689			10,052,134			253,151
Less waiver and/or expense reimbursement (Note 5)		—			(195,729	)		(102,676	)

Net expenses		12,586,689			9,856,405			150,475

Net investment income (loss)		(7,529,984	)		2,080,621			(61,563	)


NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on:
Investments		143,506,294			118,702,551			5,067,741
Net change in unrealized appreciation (depreciation) on:
Investments		216,618,091			(58,719,669	)		(965,346	)

Net realized and unrealized gain on investments		360,124,385			59,982,882			4,102,395


NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	352,594,401		$	62,063,503		$	4,040,832

See accompanying notes to financial statements.

41 |

Statements of Changes in Net Assets


	Small Cap Growth Fund						Small Cap Value Fund
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2018			Year Ended September 30, 2017
FROM OPERATIONS:
Net investment income (loss)	$	(7,529,984	)	$	(5,572,322	)	$	2,080,621		$	3,245,976
Net realized gain on investments		143,506,294			135,932,255			118,702,551			115,058,075
Net change in unrealized appreciation (depreciation) on investments		216,618,091			112,076,460			(58,719,669	)		73,375,443

Net increase in net assets resulting from operations		352,594,401			242,436,393			62,063,503			191,679,494

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Class		(93,157,470	)		—			(73,726,264	)		(55,422,671	)(a)
Retail Class		(13,096,336	)		—			(27,201,028	)		(21,255,031	)(a)
Admin Class		—			—			(3,453,473	)		(3,598,566	)(a)
Class N		(35,428,773	)		—			(16,470,360	)		(7,013,982	)(a)

Total distributions		(141,682,579	)		—			(120,851,125	)		(87,290,250	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 9)		159,153,016			(159,223,554	)		(50,857,393	)		(55,801,811	)

Net increase (decrease) in net assets		370,064,838			83,212,839			(109,645,015	)		48,587,433
NET ASSETS
Beginning of the year		1,210,998,803			1,127,785,964			1,083,329,514			1,034,742,081

End of the year	$	1,581,063,641		$	1,210,998,803		$	973,684,499		$	1,083,329,514

(a)	See Note 2d of Notes to Financial Statements.

See accompanying notes to financial statements.

| 42

Statements of Changes in Net Assets – continued


	Small/Mid Cap Growth Fund
	Year Ended September 30, 2018			Year Ended September 30, 2017
FROM OPERATIONS:
Net investment income (loss)	$	(61,563	)	$	1,597
Net realized gain on investments		5,067,741			678,497
Net change in unrealized appreciation (depreciation) on investments		(965,346	)		2,355,415

Net increase in net assets resulting from operations		4,040,832			3,035,509

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Institutional Class		—			(22,881	)(a)

NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 9)		(1,132,819	)		(394,862	)

Net increase in net assets		2,908,013			2,617,766
NET ASSETS
Beginning of the year		14,592,189			11,974,423

End of the year	$	17,500,202		$	14,592,189

(a)	See Note 2d of Notes to Financial Statements.

See accompanying notes to financial statements.

43 |

Financial Highlights

For a share outstanding throughout each period.


	Small Cap Growth Fund—Institutional Class
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	27.37		$	22.03		$	22.22		$	24.27		$	26.35

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss(a)		(0.16	)		(0.12	)		(0.09	)		(0.14	)		(0.16	)(b)
Net realized and unrealized gain (loss)		7.54			5.46			1.59			1.63			(0.09	)

Total from Investment Operations		7.38			5.34			1.50			1.49			(0.25	)

LESS DISTRIBUTIONS FROM:
Net realized capital gains		(3.20	)		—			(1.69	)		(3.54	)		(1.83	)

Net asset value, end of the period	$	31.55		$	27.37		$	22.03		$	22.22		$	24.27

Total return		29.77	%		24.24	%		6.92	%		5.78	%		(1.31	)%(b)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	926,914		$	824,103		$	812,383		$	800,883		$	852,131
Net expenses		0.94	%		0.95	%		0.95	%		0.94	%		0.94	%
Gross expenses		0.94	%		0.95	%		0.95	%		0.94	%		0.94	%
Net investment loss		(0.58	)%		(0.49	)%		(0.41	)%		(0.57	)%		(0.63	)%(b)
Portfolio turnover rate		41	%		45	%		56	%		78	%		63	%

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

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

See accompanying notes to financial statements.

| 44

Financial Highlights – continued

For a share outstanding throughout each period.


	Small Cap Growth Fund—Retail Class
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	25.53		$	20.61		$	20.93		$	23.10		$	25.23

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss(a)		(0.22	)		(0.16	)		(0.13	)		(0.19	)		(0.22	)(b)
Net realized and unrealized gain (loss)		6.98			5.08			1.50			1.56			(0.08	)

Total from Investment Operations		6.76			4.92			1.37			1.37			(0.30	)

LESS DISTRIBUTIONS FROM:
Net realized capital gains		(3.20	)		—			(1.69	)		(3.54	)		(1.83	)

Net asset value, end of the period	$	29.09		$	25.53		$	20.61		$	20.93		$	23.10

Total return		29.45	%		23.93	%		6.61	%		5.58	%		(1.58	)%(b)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	136,415		$	107,387		$	118,670		$	162,906		$	175,393
Net expenses		1.19	%		1.20	%		1.20	%		1.19	%		1.21	%
Gross expenses		1.19	%		1.20	%		1.20	%		1.19	%		1.21	%
Net investment loss		(0.82	)%		(0.73	)%		(0.66	)%		(0.82	)%		(0.90	)%(b)
Portfolio turnover rate		41	%		45	%		56	%		78	%		63	%

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

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

See accompanying notes to financial statements.

45 |

Financial Highlights – continued

For a share outstanding throughout each period.


	Small Cap Growth Fund—Class N
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	27.50		$	22.11		$	22.27		$	24.29		$	26.36

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss(a)		(0.12	)		(0.09	)		(0.06	)		(0.12	)		(0.14	)(b)
Net realized and unrealized gain (loss)		7.58			5.48			1.59			1.64			(0.10	)

Total from Investment Operations		7.46			5.39			1.53			1.52			(0.24	)

LESS DISTRIBUTIONS FROM:
Net realized capital gains		(3.20	)		—			(1.69	)		(3.54	)		(1.83	)

Net asset value, end of the period	$	31.76		$	27.50		$	22.11		$	22.27		$	24.29

Total return		29.93	%		24.38	%		7.05	%		5.92	%		(1.27	)%(b)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	517,734		$	279,508		$	196,733		$	162,591		$	15,080
Net expenses		0.82	%		0.82	%		0.83	%		0.83	%		0.83	%
Gross expenses		0.82	%		0.82	%		0.83	%		0.83	%		0.83	%
Net investment loss		(0.43	)%		(0.39	)%		(0.29	)%		(0.51	)%		(0.53	)%(b)
Portfolio turnover rate		41	%		45	%		56	%		78	%		63	%

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

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

See accompanying notes to financial statements.

| 46

Financial Highlights – continued

For a share outstanding throughout each period.


	Small Cap Value Fund—Institutional Class
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	37.37		$	33.78		$	32.19		$	36.40		$	37.42

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.09			0.13			0.17			0.27			0.20
Net realized and unrealized gain (loss)		2.11			6.36			4.82			0.49			2.18

Total from Investment Operations		2.20			6.49			4.99			0.76			2.38

LESS DISTRIBUTIONS FROM:
Net investment income		(0.05	)		(0.14	)		(0.22	)		(0.22	)		(0.10	)
Net realized capital gains		(4.25	)		(2.76	)		(3.18	)		(4.75	)		(3.30	)

Total Distributions		(4.30	)		(2.90	)		(3.40	)		(4.97	)		(3.40	)

Net asset value, end of the period	$	35.27		$	37.37		$	33.78		$	32.19		$	36.40

Total return(b)		6.21	%		19.68	%		16.75	%		1.20	%		6.17	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	587,198		$	665,229		$	654,501		$	666,107		$	730,901
Net expenses(c)		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Gross expenses		0.92	%		0.93	%		0.93	%		0.92	%		0.91	%
Net investment income		0.26	%		0.37	%		0.52	%		0.75	%		0.53	%
Portfolio turnover rate		19	%		25	%		22	%		22	%		23	%

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

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

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

See accompanying notes to financial statements.

47 |

Financial Highlights – continued

For a share outstanding throughout each period.


	Small Cap Value Fund—Retail Class
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	36.83		$	33.33		$	31.78		$	35.98		$	37.03

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.00	(b)		0.04			0.08			0.18			0.10
Net realized and unrealized gain (loss)		2.08			6.27			4.77			0.48			2.16

Total from Investment Operations		2.08			6.31			4.85			0.66			2.26

LESS DISTRIBUTIONS FROM:
Net investment income		—			(0.05	)		(0.12	)		(0.11	)		(0.01	)
Net realized capital gains		(4.25	)		(2.76	)		(3.18	)		(4.75	)		(3.30	)

Total Distributions		(4.25	)		(2.81	)		(3.30	)		(4.86	)		(3.31	)

Net asset value, end of the period	$	34.66		$	36.83		$	33.33		$	31.78		$	35.98

Total return(c)		5.95	%		19.38	%		16.47	%		0.94	%		5.90	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	208,310		$	251,405		$	267,936		$	306,360		$	358,698
Net expenses(d)		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		1.17	%		1.18	%		1.18	%		1.17	%		1.20	%
Net investment income		0.01	%		0.12	%		0.27	%		0.50	%		0.28	%
Portfolio turnover rate		19	%		25	%		22	%		22	%		23	%

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

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

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

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

See accompanying notes to financial statements.

| 48

Financial Highlights – continued

For a share outstanding throughout each period.


	Small Cap Value Fund—Admin Class
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	35.58		$	32.31		$	30.88		$	35.06		$	36.24

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)(a)		(0.08	)		(0.04	)		0.01			0.09			0.01
Net realized and unrealized gain (loss)		2.00			6.07			4.62			0.48			2.11

Total from Investment Operations		1.92			6.03			4.63			0.57			2.12

LESS DISTRIBUTIONS FROM:
Net investment income		—			—			(0.02	)		(0.00	)(b)		—
Net realized capital gains		(4.25	)		(2.76	)		(3.18	)		(4.75	)		(3.30	)

Total Distributions		(4.25	)		(2.76	)		(3.20	)		(4.75	)		(3.30	)

Net asset value, end of the period	$	33.25		$	35.58		$	32.31		$	30.88		$	35.06

Total return(c)		5.68	%		19.10	%		16.19	%		0.71	%		5.63	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	24,530		$	30,533		$	43,973		$	45,762		$	61,791
Net expenses(d)		1.40	%		1.40	%		1.39	%(e)		1.38	%(f)		1.40	%
Gross expenses		1.42	%		1.43	%		1.42	%(e)		1.40	%(f)		1.51	%
Net investment income (loss)		(0.24	)%		(0.11	)%		0.03	%		0.28	%		0.02	%
Portfolio turnover rate		19	%		25	%		22	%		22	%		23	%

(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.

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

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

(e)	Includes refund of prior year service fee of 0.01%.

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

See accompanying notes to financial statements.

49 |

Financial Highlights – continued

For a share outstanding throughout each period.


	Small Cap Value Fund—Class N
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	37.41		$	33.81		$	32.22		$	36.44		$	37.44

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.12			0.15			0.19			0.27			0.23
Net realized and unrealized gain (loss)		2.11			6.37			4.83			0.50			2.18

Total from Investment Operations		2.23			6.52			5.02			0.77			2.41

LESS DISTRIBUTIONS FROM:
Net investment income		(0.08	)		(0.16	)		(0.25	)		(0.24	)		(0.11	)
Net realized capital gains		(4.25	)		(2.76	)		(3.18	)		(4.75	)		(3.30	)

Total Distributions		(4.33	)		(2.92	)		(3.43	)		(4.99	)		(3.41	)

Net asset value, end of the period	$	35.31		$	37.41		$	33.81		$	32.22		$	36.44

Total return		6.28	%		19.78	%		16.84	%		1.25	%		6.25	%(b)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	153,646		$	136,162		$	68,332		$	38,555		$	2,568
Net expenses		0.83	%		0.83	%		0.83	%		0.83	%(c)		0.85	%(d)
Gross expenses		0.83	%		0.83	%		0.83	%		0.83	%(c)		0.89	%
Net investment income		0.33	%		0.44	%		0.61	%		0.76	%		0.60	%
Portfolio turnover rate		19	%		25	%		22	%		22	%		23	%

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

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

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

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

See accompanying notes to financial statements.

| 50

Financial Highlights – continued

For a share outstanding throughout each period.


	Small/Mid Cap Growth Fund—Institutional Class
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Period Ended September 30, 2015*
Net asset value, beginning of the period	$	12.31		$	9.73		$	9.05		$	10.00

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)(a)		(0.05	)		0.00	(b)		(0.02	)		(0.01	)
Net realized and unrealized gain (loss)		3.23			2.60			0.70			(0.94	)

Total from Investment Operations		3.18			2.60			0.68			(0.95	)

LESS DISTRIBUTIONS FROM:
Net investment income		—			(0.02	)		—			—

Net asset value, end of the period	$	15.49		$	12.31		$	9.73		$	9.05

Total return(c)		25.83	%		26.74	%		7.51	%		(9.50	)%(d)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	17,500		$	14,592		$	11,974		$	9,242
Net expenses(e)		0.85	%		0.85	%		0.85	%		0.85	%(f)
Gross expenses		1.43	%		1.57	%		1.75	%		2.65	%(f)
Net investment income (loss)		(0.35	)%		0.01	%		(0.22	)%		(0.53	)%(f)
Portfolio turnover rate		102	%(g)		49	%		53	%		14	%

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

(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.

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

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

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

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

(g)	The variation in the Fund’s turnover rate from 2017 to 2018 was primarily due to significant shareholder flows.

See accompanying notes to financial statements.

51 |

Notes to Financial Statements

September 30, 2018

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

Loomis Sayles Funds I:

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

Loomis Sayles Funds II:

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

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

Each Fund is a diversified investment company.

Small Cap Growth Fund and Small Cap Value Fund were closed to new investors effective September 14, 2012 and September 15, 2008, respectively. Subsequent to year-end on October 1, 2018, Small Cap Growth Fund re-opened to new investors. Effective November 27, 2017, Small Cap Value Fund re-opened to new investors. Small Cap Growth Fund offers Institutional Class, Retail Class and Class N shares. Small Cap Value Fund offers Institutional Class, Retail Class, Admin Class and Class N shares. Small/Mid Cap Growth Fund offers Institutional Class shares.

Each share class is sold without a sales charge. Retail Class and Admin Class shares pay a Rule 12b-1 fee. Class N shares are offered with an initial minimum investment of $1,000,000. Institutional Class shares are intended for institutional investors with a minimum initial investment of $100,000 for Small Cap Growth Fund and Small Cap Value Fund and $1,000,000 for Small/Mid Cap Growth Fund. Certain categories of investors are exempted from the minimum investment amount for Class N and Institutional Class as outlined in the relevant Fund’s prospectus. Admin Class shares are offered exclusively through intermediaries.

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

| 52

Notes to Financial Statements – continued

September 30, 2018

of the net assets of a Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

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

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

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

b. Investment Transactions and Related Investment Income. Investment transactions are accounted for on a trade date plus one day basis for daily NAV calculation. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium, if applicable. Distributions received from investments in securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains and return of capital included in distributions received from the Funds’ investments in real estate investment trusts (“REITs”) are reported to the Funds after the end of the fiscal year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the fiscal year. Estimates are based on the most recent REIT distribution information available. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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d. New Disclosure Requirements. In accordance with new reporting requirements pursuant to Regulation S-X of the Securities and Exchange Commission, presentation of certain amounts on the Statements of Changes in Net Assets, for the year ended September 30, 2017, have been conformed to meet the new disclosure requirements. These adjustments include Distributions to Shareholders; where the prior disclosure separately stated distributions from net investment income and distributions from net realized capital gains for each share class of the Fund, they are now combined into a single line item for each respective share class. In addition, disclosure of Distributions in Excess of Net Investment Income and Accumulated Net Investment Loss, where applicable, has been removed from the Statements of Changes in Net Assets.

The following is a summary of the previously disclosed amounts, as reported at September 30, 2017:

Small Cap Growth Fund


ACCUMULATED NET INVESTMENT LOSS	$	(5,263,019	)

Small Cap Value Fund


FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Institutional Class	$	(2,669,796	)
Retail Class		(383,151	)
Class N		(394,109	)

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Notes to Financial Statements – continued

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Net realized capital gains
Institutional Class	$	(52,752,875	)
Retail Class		(20,871,880	)
Admin Class		(3,598,566	)
Class N		(6,619,873	)

Total distributions	$	(87,290,250	)

DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME	$	(210,306	)

Small/Mid Cap Growth Fund


FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Institutional Class	$	(22,881	)

DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME	$	(61,727	)

e. Federal and Foreign Income Taxes. The Trusts treat each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of September 30, 2018 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years, where applicable, remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

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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.

f. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as return of capital distributions received, distribution re-designations, and net operating losses. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts reported on the Statements of Assets and Liabilities. Temporary differences between book and tax distributable earnings are primarily due to return of capital distributions received, deferred Trustees’ fees and wash sales. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and net realized short-term capital gains are reported as 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, 2018 and 2017 were as follows:


	2018 Distributions Paid From:						2017 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Small Cap Growth Fund	$	—	$	141,682,579	$	141,682,579	$	—	$	—	$	—
Small Cap Value Fund		1,359,796		119,491,329		120,851,125		3,961,114		83,329,136		87,290,250
Small/Mid Cap Growth Fund		—		—		—		22,881		—		22,881

For the year ended September 30, 2017 differences between amounts previously reported and now disclosed in Note 2d of the Notes to Financial Statements are primarily attributable to different book and tax treatment for short-term capital gains.

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As of September 30, 2018, the components of distributable earnings on a tax basis were as follows:


	Small Cap Growth Fund			Small Cap Value Fund		Small/Mid Cap Growth Fund
Undistributed ordinary income	$	—		$	909,338	$	—
Undistributed long-term capital gains		118,993,134			105,323,288		4,717,064

Total undistributed earnings		118,993,134			106,232,626		4,717,064

Late-year ordinary and post-October capital loss deferrals*		(202,395	)		—		(46,179	)

Unrealized appreciation		541,795,339			313,825,773		2,393,032

Total accumulated earnings	$	660,586,078		$	420,058,399	$	7,063,917

Capital loss carryforward utilized in the current year	$	—		$	—	$	407,754

* Under current tax law, net operating losses, 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. Small Cap Growth Fund and Small/Mid Cap Growth Fund are deferring net operating losses.

As of September 30, 2018, the cost of investments and unrealized appreciation (depreciation) on a federal tax basis were as follows:


	Small Cap Growth Fund			Small Cap Value Fund			Small/Mid Cap Growth Fund
Federal tax cost	$	1,041,021,613		$	661,050,832		$	15,471,178

Gross tax appreciation	$	552,711,139		$	346,019,934		$	2,616,209
Gross tax depreciation		(10,915,800	)		(32,194,161	)		(223,177	)

Net tax appreciation	$	541,795,339		$	313,825,773		$	2,393,032

g. Repurchase Agreements. Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of September 30, 2018, each Fund, as applicable, had investments in repurchase agreements for which the value of the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.

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h. Securities Lending. The Funds have entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Funds, to lend securities to certain designated borrowers. The loans are collateralized with cash or securities in an amount equal to at least 105% or 102% of the market value (including accrued interest) of the loaned international or domestic securities, respectively, when the loan is initiated. Thereafter, the value of the collateral must remain at least 102% of the market value (including accrued interest) of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value (including accrued interest) of loaned securities for non-U.S. equities; and at least 100% of the market value (including accrued interest) of loaned securities for U.S. Government securities, sovereign debt issued by non-U.S. Governments and non-U.S. corporate debt. In the event that the market value of the collateral falls below the required percentages described above, the borrower will deliver additional collateral on the next business day. As with other extensions of credit, the Funds 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, 2018, none of the Funds had loaned securities under this agreement.

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

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).

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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, 2018, at value:

Small Cap Growth Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	1,517,502,364	$	—	$	—	$	1,517,502,364
Short-Term Investments		—		65,314,588		—		65,314,588

Total	$	1,517,502,364	$	65,314,588	$	—	$	1,582,816,952

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

For the year ended September 30, 2018, 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)	$	965,224,016	$	—	$	—	$	965,224,016
Closed-End Investment Companies		2,796,342		—		—		2,796,342
Short-Term Investments		—		6,856,247		—		6,856,247

Total	$	968,020,358	$	6,856,247	$	—	$	974,876,605

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

For the year ended September 30, 2018, there were no transfers among Levels 1, 2 and 3.

Small/Mid Cap Growth Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3		Total
Common Stocks(a)	$	17,056,617	$	—	$	—	$	17,056,617
Short-Term Investments		—		807,593		—		807,593

Total	$	17,056,617	$	807,593	$	—	$	17,864,210

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

For the year ended September 30, 2018, there were no transfers among Levels 1, 2 and 3.

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4. Purchases and Sales of Securities. For the year ended September 30, 2018, purchases and sales of securities (excluding short-term investments) were as follows:


Fund	Purchases		Sales
Small Cap Growth Fund	$	532,560,398	$	527,252,099
Small Cap Value Fund		195,188,871		345,164,307
Small/Mid Cap Growth Fund		16,863,529		18,071,069

5. Management Fees and Other Transactions with Affiliates.

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


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

Loomis Sayles has given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until January 31, 2019, may be terminated before then only with the consent of the Funds’ Board of Trustees and are reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/ reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.

For the year ended September 30, 2018, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:


	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Institutional Class		Retail Class		Admin Class		Class N
Small Cap Growth Fund		1.00%		1.25%		—		0.95%
Small Cap Value Fund		0.90%		1.15%		1.40%		0.85%
Small/Mid Cap Growth Fund		0.85%		—		—		—

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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, 2018, the management fees for each Fund were as follows:


	Gross Management Fees		Contractual Waivers of Management Fees¹		Net Management Fees		Percentage of Average Daily Net Assets
Fund	Gross Management Fees		Contractual Waivers of Management Fees¹		Net Management Fees		Gross		Net
Small Cap Growth Fund	$	10,158,265	$	—	$	10,158,265		0.75%		0.75%
Small Cap Value Fund		7,700,146		—		7,700,146		0.75%		0.75%
Small/Mid Cap Growth Fund		132,762		102,676		30,086		0.75%		0.17%

For the year ended September 30, 2018, class-specific expenses have been reimbursed as follows:


	Reimbursement¹
Fund	Institutional Class		Retail Class		Admin Class		Class N		Total
Small Cap Value Fund	$	137,802	$	51,701	$	6,226	$	—	$	195,729

¹ Waiver/expense reimbursements are subject to possible recovery until September 30, 2019.

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

b. Service and Distribution Fees. Natixis Distribution, L.P. (“Natixis Distribution”), which is a wholly-owned subsidiary of Natixis, has entered into a distribution agreement with the Trusts. Pursuant to this agreement, Natixis 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 Natixis Distribution a monthly distribution fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Retail Class shares, as compensation for services provided by Natixis Distribution in connection with the marketing or sale of Retail Class shares or for payments made by Natixis Distribution to securities dealers or other financial intermediaries as commissions, asset-based sales charges or other compensation with respect to the sale of Retail Class shares, or for providing personal services to investors and/or the maintenance of shareholder accounts.

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Under the Admin Class Plan, Small Cap Value Fund pays Natixis 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 Natixis Distribution in connection with the marketing or sale of Admin Class shares or for payments made by Natixis 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 Natixis 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, 2018, 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	$	—	$	293,140	$	—
Small Cap Value Fund		69,659		578,786		69,659

c. Administrative Fees. Natixis Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts, Natixis ETF Trust and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0275% of the next $30 billion and 0.0225% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust of $10 million, which is reevaluated on an annual basis.

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For the year ended September 30, 2018, the administrative fees for each Fund were as follows:


Fund	Administrative Fees
Small Cap Growth Fund	$	595,459
Small Cap Value Fund		451,857
Small/Mid Cap Growth Fund		7,796

For the year ended September 30, 2018, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:


Fund	Sub-Transfer Agent Fees
Small Cap Growth Fund	$	1,110,908
Small Cap Value Fund		775,208
Small/Mid Cap Growth Fund		309


Fund	Reimbursements of Sub-Transfer Agent Fees
Small Cap Growth Fund	$	13,202
Small Cap Value Fund		9,225
Small/Mid Cap Growth Fund		4

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

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e. Trustees Fees and Expenses. The Trusts do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distribution, Natixis or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $340,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that he attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $170,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, the chairperson of the Contract Review Committee and the chairperson of the Audit Committee each receive an additional retainer fee at the annual rate of $20,000. The chairperson of the Governance Committee receives an additional retainer fee at the annual rate of $12,000. Each Contract Review Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust 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 Natixis ETF Trust 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 Natixis ETF Trust, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. The portions of the accrued obligations allocated to the Funds under the Plan are reflected as Deferred Trustees’ fees in the Statements of Assets and Liabilities.

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f. Affiliated Ownership. As of September 30, 2018, 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
Small Cap Growth Fund		0.24%		1.49%		1.73%
Small Cap Value Fund		0.33%		3.28%		3.61%
Small/Mid Cap Growth Fund		—		30.63%		30.63%

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

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

For the year ended September 30, 2018, the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):


	Transfer Agent Fees and Expenses
Fund	Institutional Class		Retail Class		Admin Class		Class N
Small Cap Growth Fund	$	991,671	$	138,178	$	—	$	1,312
Small Cap Value Fund		567,658		213,065		25,647		621
Small/Mid Cap Growth Fund		2,320		—		—		—

7. Line of Credit. Effective April 12, 2018, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, entered into a $400,000,000 committed unsecured line of credit provided by State Street Bank. Any one Fund may borrow up to $350,000,000 under the line of credit agreement (as long as all borrowings by all Funds in the aggregate do not exceed the $400,000,000 limit at any time), subject to each Fund’s investment restrictions and its contractual obligations under the line of credit. Interest is charged to the Funds based upon the terms set forth in the agreement. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit. The Funds paid an arrangement fee, an upfront fee, and other fees in connection with the new line of credit agreement, which are being amortized over a period of 364 days and are reflected as miscellaneous expenses on the Statements of Operations. The unamortized balance is reflected as prepaid expenses on the Statements of Assets and Liabilities.

Prior to April 12, 2018, each Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, entered into a 364-day, $400,000,000 syndicated,

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committed, unsecured line of credit with Citibank, N.A. to be used for temporary or emergency purposes only. Any one Fund was able borrow up to the full $400,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate did not exceed the $400,000,000 limit at any time), subject to each Fund’s investment restrictions and its contractual obligations under the line of credit. Interest was charged to the Funds at a rate equal to the greater of the eurodollar or the federal funds rate plus 1.00%. In addition, a commitment fee of 0.15% per annum, payable on the last business day of each month, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the year ended September 30, 2018, none of the Funds had borrowings under this agreement.

8. Brokerage Commission Recapture. Each Fund had 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, 2018, amounts rebated under these agreements were as follows:


Fund	Rebates
Small Cap Growth Fund	$	16,641
Small Cap Value Fund		17,330
Small/Mid Cap Growth Fund		216

Effective March 9, 2018, the brokerage commission recapture program was terminated.

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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, 2018						Year Ended September 30, 2017
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		5,754,255		$	164,470,396			4,034,738		$	97,151,691
Issued in connection with the reinvestment of distributions		3,526,960			89,866,953			—			—
Redeemed		(10,014,456	)		(275,865,186	)		(10,793,297	)		(256,866,078	)

Net change		(733,241	)	$	(21,527,837	)		(6,758,559	)	$	(159,714,387	)

Retail Class
Issued from the sale of shares		1,440,364		$	38,533,569			692,134		$	15,704,343
Issued in connection with the reinvestment of distributions		555,428			13,074,766			—			—
Redeemed		(1,512,825	)		(39,740,093	)		(2,244,929	)		(49,573,803	)

Net change		482,967		$	11,868,242			(1,552,795	)	$	(33,869,460	)

Class N
Issued from the sale of shares		6,071,292		$	171,038,280			3,855,688		$	94,799,081
Issued in connection with the reinvestment of distributions		1,378,059			35,305,861			—			—
Redeemed		(1,311,117	)		(37,531,530	)		(2,588,567	)		(60,438,788	)

Net change		6,138,234		$	168,812,611			1,267,121		$	34,360,293

Increase (decrease) from capital share transactions		5,887,960		$	159,153,016			(7,044,233	)	$	(159,223,554	)

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Notes to Financial Statements – continued

September 30, 2018

9. Capital Shares – continued.


	Small Cap Value Fund
	Year Ended September 30, 2018						Year Ended September 30, 2017
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		2,693,880		$	94,890,273			3,564,958		$	126,242,963
Issued in connection with the reinvestment of distributions		2,049,039			70,363,994			1,505,162			53,252,622
Redeemed		(5,895,445	)		(207,624,212	)		(6,645,676	)		(233,677,752	)

Net change		(1,152,526	)	$	(42,369,945	)		(1,575,556	)	$	(54,182,167	)

Retail Class
Issued from the sale of shares		283,804		$	9,876,474			616,632		$	21,554,720
Issued in connection with the reinvestment of distributions		802,859			27,144,677			607,283			21,218,469
Redeemed		(1,902,508	)		(66,646,118	)		(2,437,522	)		(85,099,728	)

Net change		(815,845	)	$	(29,624,967	)		(1,213,607	)	$	(42,326,539	)

Admin Class
Issued from the sale of shares		189,958		$	6,328,263			220,759		$	7,434,300
Issued in connection with the reinvestment of distributions		78,301			2,544,008			80,992			2,738,330
Redeemed		(388,643	)		(12,936,046	)		(804,540	)		(27,089,959	)

Net change		(120,384	)	$	(4,063,775	)		(502,789	)	$	(16,917,329	)

Class N
Issued from the sale of shares		829,306		$	29,863,505			1,948,540		$	69,188,229
Issued in connection with the reinvestment of distributions		479,347			16,470,360			198,135			7,013,982
Redeemed		(596,844	)		(21,132,571	)		(527,853	)		(18,577,987	)

Net change		711,809		$	25,201,294			1,618,822		$	57,624,224

Increase (decrease) from capital share transactions		(1,376,946	)	$	(50,857,393	)		(1,673,130	)	$	(55,801,811	)


	Small/Mid Cap Growth Fund
	Year Ended September 30, 2018						Year Ended September 30, 2017
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		925,420		$	12,965,329			183,187		$	1,981,855
Issued in connection with the reinvestment of distributions		—			—			2,259			22,881
Redeemed		(981,019	)		(14,098,148	)		(230,300	)		(2,399,598	)

Increase (decrease) from capital share transactions		(55,599	)	$	(1,132,819	)		(44,854	)	$	(394,862	)

69 |

Report of Independent Registered Public Accounting Firm

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

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the portfolio of investments, of Loomis Sayles Small Cap Value Fund (one of the funds constituting Loomis Sayles Funds I), and Loomis Sayles Small Cap Growth Fund and Loomis Sayles Small/Mid Cap Growth Fund (two of the funds constituting Loomis Sayles Funds II) (hereafter collectively referred to as the “Funds”) as of September 30, 2018, the related statements of operations for the year ended September 30, 2018, the statements of changes in net assets for each of the two years in the period ended September 30, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of September 30, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended September 30, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

| 70

Report of Independent Registered Public Accounting Firm

correspondence with the custodian, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 20, 2018

We have served as the auditor of one or more investment companies in the Natixis Investment Company Complex since at least 1995. We have not determined the specific year we began serving as auditor.

71 |

2018 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2018, a percentage of dividends distributed by the Fund listed below qualifies for the dividends received deduction for corporate shareholders. This percentage is as follows:


Fund	Qualifying Percentage
Small Cap Value		100.00%


Fund	Amount
Small Cap Growth	$	141,682,579
Small Cap Value		119,491,329

Qualified Dividend Income. For the fiscal year ended September 30, 2018, the Fund below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 20% depending on an individual’s tax bracket. If the Fund pays a distribution during calendar year 2018, complete information will be reported in conjunction with Form 1099-DIV.


Fund
Small Cap Value

| 72

Trustee and Officer Information

The tables below provide certain information regarding the trustees and officers of Loomis Sayles Funds I and Loomis Sayles Funds II (the “Trusts”). Unless otherwise indicated, the address of all persons below is 888 Boylston Street, Suite 800, Boston, MA 02199-8197. The Funds’ Statement of Additional Information includes additional information about the trustees of the Trusts and is available by calling Loomis Sayles Funds at 800-633-3330.


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

INDEPENDENT TRUSTEES

Kenneth A. Drucker (1945)	Chairperson of the Board of Trustees since January 2017 Trustee since 2008 Ex Officio member of Audit Committee, Contract Review Committee and Governance Committee	Retired	51 None	Significant experience on the Board and on the boards of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)

Edmond J. English (1953)	Trustee since 2013 Audit Committee Member and Governance Committee Member	Executive Chairman; formerly, Chief Executive Officer of Bob’s Discount Furniture (retail)	51 Director, Burlington Stores, Inc. (retail)	Significant experience on the Board and significant experience on the boards of other business organizations (including retail companies and a bank); executive experience (including at a retail company)

Richard A. Goglia (1951)	Trustee since 2015 Audit Committee Member	Retired; formerly Vice President and Treasurer of Raytheon Company (defense)	51 None	Experience on the Board and executive experience (including his role as vice president and treasurer of a defense company and experience at a financial services company)

73 |

Trustee and Officer Information – continued


Name and Year of Birth	Position(s) Held with the 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 Contract Review Committee Member and Governance Committee Member	Director of Abt Associates Inc. (research and consulting)	51 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the boards of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

Martin T. Meehan (1956)	Trustee since 2012 Audit Committee Member	President, University of Massachusetts; formerly, Chancellor and faculty member, University of Massachusetts Lowell	51 None	Significant experience on the Board and on the boards of other business organizations; experience as President of the University of Massachusetts; government experience (including as a member of the U.S. House of Representatives); academic experience

Maureen B. Mitchell (1951)	Trustee since 2017 Contract Review Committee Member	Retired; formerly President, Global Sales and Marketing, GE Asset Management, Inc. (financial services)	51 Director, Sterling Bancorp (Bank)	Experience on the Board and on the boards of other business organizations;; financial services industry and executive experience (including role as president of global sales and marketing at a financial services company)

| 74

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

James P. Palermo (1955)	Trustee since 2016 Contract Review Committee Member	Founding Partner, Breton Capital Management, LLC (private equity); Partner, STEP Partners, LLC (private equity); formerly, Chief Executive Officer of Global Client Management of The Bank of New York Mellon Corporation	51 Director, FutureFuel Corp. (Chemicals and Biofuels)	Experience on the Board and on the boards of other business organizations; financial services industry and executive experience (including roles as chief executive officer of client management and asset servicing for a banking and financial services company)

Erik R. Sirri (1958)	Trustee since 2009 Chairperson of the Audit Committee	Professor of Finance at Babson College	51 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist

Peter J. Smail (1952)	Trustee since 2009 Chairperson of the Contract Review Committee and Governance Committee Member	Retired	51 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

Cynthia L. Walker (1956)	Trustee since 2005 Chairperson of the Governance Committee and Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine	51 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)

75 |

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

Kevin P. Charleston³ (1965) One Financial Center Boston, MA 02111	Trustee since 2015 President and Chief Executive Officer of Loomis Sayles Funds I since 2015	President, Chief Executive Officer and Chairman of the Board of Directors; formerly, Chief Financial Officer, Loomis, Sayles & Company, L.P.	51 None	Experience on the Board; continuing service as President, Chief Executive Officer and Chairman of the Board of Directors 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; Chief Executive Officer of Loomis Sayles Funds II since 2015	President and Chief Executive Officer, Natixis Advisors, L.P., Natixis Distribution, L.P., Natixis Distribution Corporation and Chairman of the Board of Natixis Distribution Corporation	51 None	Significant experience on the Board; experience as President and Chief Executive Officer, Natixis Advisors, L.P., Natixis Distribution, L.P., Natixis Distribution Corporation and Chairman of the Board of Natixis Distribution Corporation

¹	Each trustee serves until retirement, resignation or removal from the Board. The current retirement age is 75. The position of Chairperson of the Board is appointed for a three-year term.

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

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

⁴

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

| 76

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

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

Russell L. Kane (1969)	Secretary, Clerk and Chief Legal Officer	Since 2016	Executive Vice President, General Counsel, Secretary and Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.; formerly, Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.

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

Rosa Licea-Mailloux (1976)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Since 2016	Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.; formerly, Associate General Counsel, Natixis 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.

77 |

LOGO

Annual Report

September 30, 2018

Loomis Sayles High Income Fund

Loomis Sayles Intermediate Duration Bond Fund

Loomis Sayles Limited Term Government and Agency Fund

Table of Contents



Portfolio Review			1

Portfolio of Investments			21

Financial Statements			63

Notes to Financial Statements			79

LOGO

LOOMIS SAYLES HIGH INCOME FUND


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

Investment Goal

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

Market Conditions

Healthy economic indicators, including strong gross domestic product growth and low unemployment, characterized the 12 months ending September 30, 2018. Inflation was generally stable, trending close to the Federal Reserve’s (Fed’s) 2% target rate. Bolstered by these factors, the Fed met expectations and undertook a steady pace of rate increases. This contributed to US interest rates remaining well ahead of those of other developed economies, where monetary policies were more accommodative. Against this backdrop, ongoing US trade negotiations, particularly with China, and other geopolitical issues represented a developing risk.

US interest rates moved higher during the period, especially along the shorter end of the yield curve (a curve that shows the relationship among bond yields across the maturity spectrum). US Treasuries with maturities along the short end of the curve showed more modest losses than those with longer maturities, where declines were fairly steep.

Investment grade corporate bonds posted negative returns, though they outperformed Treasuries of similar duration (price sensitivity to interest rate changes). Spreads (the difference in yield between non-Treasury and Treasury securities of similar maturity) generally widened, and the sector’s relatively longer duration weighed on returns as yields rose.

High yield corporate bonds posted positive returns, supported by investor demand for income and relatively shorter duration. Notably, gains in the CCC-rated tier of the market made it the top-performing quality tier by a significant margin.

Despite some upward movement in yields, several developed economy government bond markets remained at a disadvantage relative to the US from an income-generating perspective. The US dollar posted strong performance relative to other developed and emerging market currencies, particularly in the latter half of the period. US dollar strength eroded returns for emerging market debt investors.

Performance Results

For the 12 months ended September 30, 2018, Class Y shares of the Loomis Sayles High Income Fund returned 1.68% at net asset value. The Fund underperformed its benchmark, the Bloomberg Barclays U.S. Corporate High-Yield Bond Index, which returned 3.05%.

1 |

Explanation of Fund Performance

The Fund’s allocation to emerging market credit acted as a constraint versus the benchmark. An allocation to non-US-dollar-denominated issues had the largest negative impact on relative performance, with holdings denominated in the Argentine peso and Mexican peso being the worst performers within the sector.

The Fund’s allocation to convertible securities contributed positively to performance relative to the benchmark, with holdings of consumer non-cyclical names in particular bolstering return. In addition, allocations to equity and securitized markets both had a positive impact on relative return. Contributions within securitized markets were led by exposure to asset-backed securities and non-agency mortgage-backed securities.

Outlook

Our key investment themes are centered on our outlook for steady growth and inflation conditions. While ongoing trade negotiations raise uncertainty about global growth and pose a risk to our outlook, indicators in the United States, including manufacturing activity, business and consumer sentiment, spending, and employment, remain positive for the US economy. This leads us to expect modest improvement in US GDP growth over the next year and relatively stable inflation. Treasury yields have been increasing, and we expect this trend to continue at a modest pace. For this reason, we think it is important to maintain less interest rate sensitivity in the portfolio.

Lower inventories and strong demand have pushed oil prices higher over the past year and raised expectations for higher inflation. We expect inflation to increase at a steady pace that keeps the Fed on its gradual track toward normalizing monetary policy.

We have shifted to a more defensive profile within the portfolio and are holding higher reserves in the form of cash and short-maturity US Treasury debt to maintain flexibility. However, we have maintained our exposure to investment grade and high yield corporate bonds. We believe the environment for risk assets should remain favorable and there is further upside in the credit sectors given the outlook for continued profit growth, earnings growth and the low probability of defaults or economic recession. As we remain in an extended late expansion phase of the credit cycle,¹ we continue to be highly selective with a keen focus on undervalued issues that have solid fundamentals.

We continue to expect low default rates and low default losses from the high yield market over the next 12 to 18 months. Leverage is elevated, but interest coverage ratios (the ability to pay interest on outstanding debt) remain strong. At present, we expect technical factors to support high yield as coupon income is reinvested. We are concerned about the potential effects of a trade war on risk appetite. However, the high yield sector is typically less sensitive to trade issues; it tends to have fewer multinational and more smaller-capitalization companies than the investment grade sector.

We believe convertible bonds are still attractive in this late-cycle environment. We are very price sensitive in this sector, but believe it remains supported by strong corporate earnings and a positive US economic backdrop.

| 2

LOOMIS SAYLES HIGH INCOME FUND

We believe the portfolio is well-positioned, with broad diversification, a lower risk profile and substantial liquidity built into its holdings. We are closely monitoring risk factors that may introduce market volatility and intend to use any dislocation as a buying opportunity in areas with supportive fundamentals.

Effective November 1, 2018, the Fund’s principal investment strategies will be amended and the Fund’s fiscal year-end will change from September 30 to December 31. The Fund will no longer invest in non-US dollar denominated bonds or equity securities, among other changes. These changes are intended to eliminate the volatility associated with currency and equity allocations and address the variability of the Fund’s monthly ordinary income distributions. Additionally, Brian Kennedy and Todd Vandam will be added to the team to serve alongside Elaine Stokes and Matt Eagan, who have co-managed the Fund for over a decade.

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

Hypothetical Growth of $100,000 Investment in Class Y Shares³

September 30, 2008 through September 30, 2018

LOGO

3 |

Average Annual Total Returns — September 30, 2018³


													Expense Ratios⁴
	1 Year			5 Years			10 Years			Life of Class N			Gross			Net

Class Y (Inception 2/29/08)
NAV		1.68	%		4.90	%		8.03	%		—	%		0.90	%		0.80	%

Class A (Inception 2/22/84)
NAV		1.41			4.62			7.77			—			1.15			1.05
With 4.25% Maximum Sales Charge		-2.82			3.73			7.30			—

Class C (Inception 3/2/98)
NAV		0.86			3.87			7.00			—			1.90			1.80
With CDSC¹		-0.11			3.87			7.00			—

Class N (Inception 11/30/16)
NAV		1.96			—			—			5.93			31.73			0.75

Comparative Performance
Bloomberg Barclays U.S. Corporate High-Yield Bond Index²		3.05			5.54			9.46			6.54

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

The Bloomberg Barclays U.S. Corporate High-Yield Bond Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. Securities are classified as high yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB /BB or below, excluding emerging market debt. The Bloomberg Barclays U.S. Corporate High-Yield Bond Index was created in 1986, with history backfilled to July 1, 1983, and rolls up into the Bloomberg Barclays U.S. Universal and Global High-Yield Indices.

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 INTERMEDIATE DURATION BOND FUND


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

Investment Goal

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

Market Conditions

Healthy economic indicators, including strong gross domestic product growth, low unemployment and a favorable inflation rate, characterized the 12 months ending September 30, 2018. Bolstered by these factors, the Federal Reserve (Fed) met expectations and undertook a steady pace of rate increases. This contributed to US interest rates remaining well ahead of those of other developed economies, where monetary policies were more accommodative. Against this backdrop, ongoing US trade negotiations, particularly with China, and other geopolitical issues represented a developing risk.

Investment grade corporate bonds posted negative returns, though they outperformed Treasuries of similar duration (price sensitivity to interest rate changes). Spreads (the difference in yield between non-Treasuries and Treasury securities of similar maturity) generally widened, and the sector’s relatively longer duration weighed on returns as yields rose.

Securitized assets outperformed duration-matched Treasuries, though the rise in the short end of the US yield curve limited total returns. Within the sector, the best performers were commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS), followed by asset-backed securities (ABS).

Performance Results

For the 12 months ended September 30, 2018, Class Y shares of the Loomis Sayles Intermediate Duration Bond Fund returned -0.60% at net asset value. The Fund held up better than its benchmark, the Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index, which returned -0.96%.

Explanation of Fund Performance

The Fund’s positioning was tilted toward risk assets during the period, as securities with additional compensation above risk-free rates fared well. The largest contributors to performance included an underweight to US Treasuries, as well as exposures to corporate

5 |

bonds and securitized assets such as ABS and CMBS. Within the corporate bond sector, the Fund benefited from exposures to the banking, consumer non-cyclical and technology industries.

Exposures that detracted from performance included an underweight to the government-related segment, a relative underweight in the energy industry and adverse security selection within consumer cyclicals. As a note — roughly one-third of the impact of Treasuries came from futures positions, with the remaining impact coming from cash securities.

Outlook

We believe that the Fed will tighten monetary conditions in a gradual and measured way as aggregate demand remains healthy, with another hike likely coming in December 2018.

Corporate fundamentals continue to indicate the United States is in the late expansion phase of the credit cycle,¹ with slowing margin growth, increased mergers and acquisitions and rising leverage. Our view is that the cycle will continue to evolve slowly. Asset classes like corporate credit are supported by US tax reform and fiscal stimulus from the Trump administration. Corporate credit remains in demand due to a need for yield, fundamentals like improving corporate earnings, and technical factors such as lower bond supply. We continue to favor corporate credit over risk-free assets. We believe the primary risks to the credit markets include the pace of global growth, the timing of Fed tightening, increasing concerns about a protracted trade war and a significant uptick in inflation.

We remain underweight government bonds, given low yields, and continue to favor sectors offering higher yield potential than Treasuries.

We continue to be modestly overweight credit. We are focused on security selection opportunities, buying new issues with concessions and secondary bonds that can potentially offer favorable risk/return profiles. We believe valuations in CMBS are fair. We remain overweight to the sector, particularly senior parts of the capital stack.

We think valuations in mortgage-backed securities (MBS) have improved and are becoming more interesting. We are focused on securities with limited prepayment risk. The high-quality ABS sector remains attractive relative to government bonds. Specifically, we believe auto loans and credit card receivables remain attractive.

We have been maintaining a higher yield and exposure to more credit-sensitive sectors relative to the benchmark. We continue to monitor our portfolio and diversify our holdings with an eye toward minimizing undue exposure to macro and/or issuer events. We believe high yield issuers will continue to experience low default rates, and we are maintaining holdings in selected names that appear to offer value.

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

| 6

LOOMIS SAYLES INTERMEDIATE DURATION BOND FUND

Hypothetical Growth of $100,000 Investment in Class Y Shares^1,4,5

September 30, 2008 through September 30, 2018

LOGO

7 |

Average Annual Total Returns — September 30, 2018^4,5



										Expense Ratios⁶
	1 Year			5 Years			10 Years			Gross			Net

Class Y (Inception 1/28/98)¹
NAV		-0.60	%		1.99	%		4.55	%		0.47	%		0.40	%

Class A (Inception 5/28/10)¹
NAV		-0.85			1.71			4.29			0.72			0.65
With 4.25% Maximum Sales Charge		-5.10			0.83			3.84

Class C (Inception 8/31/16)¹
NAV		-1.71			0.92			3.40			1.48			1.40
With CDSC²		-2.68			0.92			3.40

Comparative Performance
Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index³		-0.96			1.52			3.22

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

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

The Bloomberg Barclays U.S. Intermediate Government/Credit Bond Index includes securities in the intermediate maturity range with in the Government and Credit Indices. The Government Index includes treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (i.e., publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government). The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements.

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

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

| 8

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND


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

Investment Goal

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

Market Conditions

US interest rates moved higher during the period, especially along the shorter end of the yield curve (a curve that shows the relationship among bond yields across the maturity spectrum). Treasuries with maturities along the short end of the curve showed more modest losses than those with longer maturities, where declines were fairly steep.

Securitized assets outperformed duration-matched Treasuries (duration refers to a security’s price sensitivity to interest rate changes), though the rise in the short end of the US yield curve limited total returns. Within the sector, the best performers were commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS), followed by asset-backed securities (ABS).

Performance Results

For the 12 months ended September 30, 2018, Class Y shares of the Loomis Sayles Limited Term Government and Agency Fund returned 0.09% at net asset value. The Fund held up better than its benchmark, the Bloomberg Barclays U.S. 1-5 Year Government Bond Index, which returned -0.61%.

Explanation of Fund Performance

Security selection and yield curve positioning were the main drivers of the Fund’s outperformance relative to the benchmark for the 12-month period. A position in agency collateralized mortgage obligations (CMOs) aided relative performance, as these securities strongly outperformed Treasuries of comparable duration over the period. Security selection within agency pass-through mortgage-backed securities (MBS) and agency CMBS also contributed positively to performance.

9 |

Among detractors, the Fund’s holdings in agency debentures (bonds issued by federal agencies or government-sponsored enterprises to finance their activities) had a slight negative impact on relative performance. Security selection within US Treasuries also weighed slightly on return.

Outlook

Agency MBS spreads (the difference in yield between agency MBS and Treasuries of similar maturity) are narrow relative to history. Mortgages issued in recent years are relatively high quality compared with those issued in prior years. Therefore, we favor an underweight to recently issued 30-year MBS and prefer sectors less likely to face refinancing and extension risk, such as low loan balance mortgages and home equity conversion mortgages.

Within the commercial real estate sector, top-tier assets and markets have generally recovered and are at or above prior peak levels. We believe investment grade CMBS remain attractive.

We believe ABS currently offer an attractive combination of strong credit quality and enhanced yield. We favor higher-yielding securities and bonds of less frequent issuers. Our analysis indicates the credit risk of these securities is inefficiently priced and they offer potentially attractive opportunities for additional yield.

Hypothetical Growth of $100,000 Investment in Class Y Shares³

September 30, 2008 through September 30, 2018

LOGO

See notes to chart on page 11.

| 10

LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND

Average Annual Total Returns — September 30, 2018³


													Expense Ratios⁴
	1 Year			5 Years			10 Years			Life of Class N			Gross			Net

Class Y (Inception 3/31/94)
NAV		0.09	%		0.94	%		2.56	%		—	%		0.55	%		0.55	%

Class A (Inception 1/3/89)
NAV		-0.17			0.68			2.29			—			0.80			0.80
With 2.25% Maximum Sales Charge		-2.41			0.22			2.06			—

Class C (Inception 12/30/94)
NAV		-0.91			-0.07			1.53			—			1.55			1.55
With CDSC¹		-1.89			-0.07			1.53			—

Class N (Inception 2/1/17)
NAV		0.09			—			—			0.73			0.50			0.47

Comparative Performance
Bloomberg Barclays U.S. 1-5 Year Government Bond Index²		-0.61			0.71			1.65			0.20

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

The Bloomberg Barclays U.S. 1-5 Year Government Bond Index is a subindex of the Bloomberg Barclays U.S. Government Index, which is composed of the Bloomberg Barclays U.S. Treasury and U.S. Agency Indices. The Bloomberg Barclays U.S. Government Index includes Treasuries (public obligations of the U.S. Treasury that have remaining maturities of more than one year) and U.S. agency debentures (publicly issued debt of U.S. government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. government). The Bloomberg Barclays U.S. Government Index is a component of the Bloomberg Barclays U.S. Government/Credit Index and the Bloomberg Barclays U.S. Aggregate Index.

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

11 |

ADDITIONAL INFORMATION

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

ADDITIONAL INDEX INFORMATION

PROXY VOTING INFORMATION

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

QUARTERLY PORTFOLIO SCHEDULES

| 12

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, 2018 through September 30, 2018. 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 class of Fund shares provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid on your investment for the period. You may use this information to compare the ongoing costs of investing in the Fund to other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

13 |


LOOMIS SAYLES HIGH INCOME FUND	BEGINNING ACCOUNT VALUE 4/1/2018		ENDING ACCOUNT VALUE 9/30/2018		EXPENSES PAID DURING PERIOD* 4/1/2018 – 9/30/2018
Class A
Actual		$1,000.00		$1,016.90		$5.31
Hypothetical (5% return before expenses)		$1,000.00		$1,019.80		$5.32
Class C
Actual		$1,000.00		$1,015.30		$9.09
Hypothetical (5% return before expenses)		$1,000.00		$1,016.04		$9.10
Class N
Actual		$1,000.00		$1,018.60		$3.80
Hypothetical (5% return before expenses)		$1,000.00		$1,021.31		$3.80
Class Y
Actual		$1,000.00		$1,018.30		$4.05
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%, 0.75% and 0.80% 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).


LOOMIS SAYLES INTERMEDIATE DURATION BOND FUND	BEGINNING ACCOUNT VALUE 4/1/2018		ENDING ACCOUNT VALUE 9/30/2018		EXPENSES PAID DURING PERIOD* 4/1/2018 – 9/30/2018
Class A
Actual		$1,000.00		$1,002.40		$3.26
Hypothetical (5% return before expenses)		$1,000.00		$1,021.81		$3.29
Class C
Actual		$1,000.00		$998.50		$7.01
Hypothetical (5% return before expenses)		$1,000.00		$1,018.05		$7.08
Class Y
Actual		$1,000.00		$1,004.60		$2.01
Hypothetical (5% return before expenses)		$1,000.00		$1,023.06		$2.03

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.65%, 1.40% and 0.40% for Class A, C and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

| 14


LOOMIS SAYLES LIMITED TERM GOVERNMENT AND AGENCY FUND	BEGINNING ACCOUNT VALUE 4/1/2018		ENDING ACCOUNT VALUE 9/30/2018		EXPENSES PAID DURING PERIOD* 4/1/2018 – 9/30/2018
Class A
Actual		$1,000.00		$1,002.20		$4.02
Hypothetical (5% return before expenses)		$1,000.00		$1,021.06		$4.05
Class C
Actual		$1,000.00		$998.40		$7.77
Hypothetical (5% return before expenses)		$1,000.00		$1,017.30		$7.84
Class N
Actual		$1,000.00		$1,003.00		$2.31
Hypothetical (5% return before expenses)		$1,000.00		$1,022.76		$2.33
Class Y
Actual		$1,000.00		$1,003.50		$2.76
Hypothetical (5% return before expenses)		$1,000.00		$1,022.31		$2.79

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.80%, 1.55%, 0.46% and 0.55% 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).

15 |

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

| 16

17 |

The Board noted that through December 31, 2017, each Fund’s one-, three- and five-year performance, stated as percentile rankings within categories selected by the independent third-party data provider was as follows (where the best performance would be in the first percentile of its category):


	One-Year			Three-Year			Five-Year
Loomis Sayles High Income Fund		29	%		60	%		50	%
Loomis Sayles Intermediate Duration Bond Fund		92	%		79	%		79	%
Loomis Sayles Limited Term Government and Agency Fund		15	%		20	%		17	%

In the case of each Fund that had performance that lagged that of a relevant category group median as determined by the independent third-party for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Agreements, including: (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; and (2) that the Fund’s more recent performance, although lagging in certain periods, had shown improvement relative to its category; and (3) the Fund had outperformed its relevant performance 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 and administrative services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Adviser to comparable accounts (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets and the greater regulatory costs associated with the management of such assets. In evaluating each Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund, as well as the need for the Adviser to offer competitive compensation and the potential need to expend additional resources to the extent the 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

| 18

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 have expense caps in place, and they considered the amounts waived or reimbursed by the Adviser for certain Funds under their caps. The Trustees considered that the current expenses of the Loomis Sayles Limited Term Government and Agency Fund are at its cap. The Trustees noted that the total advisory fee rates for the Funds were at or below the medians of their respective peer group of 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 caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense 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 Limited Term Government and Agency Fund had breakpoints in its advisory fee and that all of the Funds were subject to an expense cap. The Trustees also considered management’s proposal to reduce the Loomis Sayles High Income Fund’s expense cap last year. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and on a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

19 |

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.

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.

| 20

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund


Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 92.9% of Net Assets
	Non-Convertible Bonds — 83.1%
		ABS Home Equity — 1.3%
$	85,161	Banc of America Alternative Loan Trust, Series 2003-8, Class 1CB1, 5.500%, 10/25/2033	$	86,781
	95,513	Banc of America Funding Trust, Series 2005-7, Class 3A1, 5.750%, 11/25/2035		100,259
	62,004	Banc of America Funding Trust, Series 2007-4, Class 5A1, 5.500%, 11/25/2034		62,210
	760	Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-HYB7, Class 2A, 4.182%, 11/20/2035(a)(b)(c)		683
	192,046	DSLA Mortgage Loan Trust, Series 2005-AR5, Class 2A1A, 1-month LIBOR + 0.330%, 2.498%, 9/19/2045(d)		162,395
	305,000	Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2015-DNA1, Class M3, 1-month LIBOR + 3.300%, 5.516%, 10/25/2027(d)(e)		341,448
	101,627	GMAC Mortgage Corp. Loan Trust, Series 2005-AR4, Class 3A1, 4.309%, 7/19/2035(b)		98,796
	150,000	Home Partners of America Trust, Series 2016-2, Class E, 1-month LIBOR + 3.780%, 5.938%, 10/17/2033, 144A(d)		150,209
	155,000	Home Partners of America Trust, Series 2016-2, Class F, 1-month LIBOR + 4.700%, 6.858%, 10/17/2033, 144A(d)		155,427
	228,531	MASTR Adjustable Rate Mortgages Trust, Series 2005-2, Class 3A1, 3.927%, 3/25/2035(b)		225,035
	232,502	MASTR Adjustable Rate Mortgages Trust, Series 2005-2, Class 4A1, 3.523%, 3/25/2035(b)		212,811
	100,000	RCO Mortgage LLC, Series 2017-1, Class A2, 5.125%, 8/25/2022, 144A(b)		100,038
	470,000	VOLT LVI LLC, Series 2017-NPL3, Class A2, 5.875%, 3/25/2047, 144A(b)		469,714

				2,165,806

		ABS Other — 0.3%
	190,892	AIM Aviation Finance Ltd., Series 2015-1A, Class B1, 5.072%, 2/15/2040, 144A(b)		188,725
	238,655	Wave LLC, Series 2017-1A, Class B, 5.682%, 11/15/2042, 144A		241,179

				429,904

		Aerospace & Defense — 1.3%
	95,000	Engility Corp., 8.875%, 9/01/2024		103,313
	638,000	Leonardo U.S. Holdings, Inc., 6.250%, 1/15/2040, 144A		665,951
	383,000	Leonardo U.S. Holdings, Inc., 7.375%, 7/15/2039, 144A		444,280
	200,000	TransDigm UK Holdings PLC, 6.875%, 5/15/2026, 144A		205,250
	845,000	TransDigm, Inc., 6.500%, 7/15/2024		865,702

				2,284,496

		Airlines — 0.3%
	535,000	Latam Finance Ltd., 6.875%, 4/11/2024, 144A		519,619
	32,352	Virgin Australia Pass Through Certificates, Series 2013-1B, 6.000%, 4/23/2022, 144A		32,820
	21,674	Virgin Australia Pass Through Certificates, Series 2013-1C, 7.125%, 10/23/2018, 144A		21,573

				574,012

See accompanying notes to financial statements.

21 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Automotive — 1.2%
$	195,000	Allison Transmission, Inc., 5.000%, 10/01/2024, 144A	$	194,025
	285,000	Dana Financing Luxembourg S.a.r.l., 5.750%, 4/15/2025, 144A		279,927
	115,000	Goodyear Tire & Rubber Co. (The), 5.000%, 5/31/2026		108,129
	240,000	Goodyear Tire & Rubber Co. (The), 5.125%, 11/15/2023		240,000
	880,000	IHO Verwaltungs GmbH, PIK, 4.500%, 9/15/2023, 144A(f)		851,497
	420,000	Midas Intermediate Holdco II LLC/Midas Intermediate Holdco II Finance, Inc., 7.875%, 10/01/2022, 144A		371,700

				2,045,278

		Banking — 5.3%
	860,000	Ally Financial, Inc., 4.125%, 2/13/2022		858,925
	2,070,000	Ally Financial, Inc., 4.625%, 3/30/2025		2,054,475
	485,000	Ally Financial, Inc., 5.750%, 11/20/2025		500,762
	6,605,000	Banco Hipotecario S.A., Argentina Deposit Rates Badlar Private Banks + 2.500%, 36.333%, 1/12/2020, 144A, (ARS)(d)		136,027
	6,270,000	Banco Hipotecario S.A., Argentina Deposit Rates Badlar Private Banks + 4.000%, 46.750%, 11/07/2022, 144A, (ARS)(d)		112,665
	8,775,000	Banco Macro S.A., 17.500%, 5/08/2022, 144A, (ARS)		119,278
	7,075,000	Banco Supervielle S.A., Argentina Deposit Rates Badlar Private Banks + 4.500%, 39.125%, 8/09/2020, 144A, (ARS)(d)		153,171
	850,000	Barclays PLC, 5.200%, 5/12/2026(e)		835,177
	1,195,000	Commerzbank AG, 8.125%, 9/19/2023, 144A		1,362,769
	800,000	Deutsche Bank AG, (fixed rate to 12/01/2027, variable rate thereafter), 4.875%, 12/01/2032		710,840
	470,000	Intesa Sanpaolo SpA, 5.017%, 6/26/2024, 144A		424,121
	495,000	Intesa Sanpaolo SpA, 5.710%, 1/15/2026, 144A		450,296
	1,200,000	Royal Bank of Scotland Group PLC, 6.125%, 12/15/2022		1,254,714

				8,973,220

		Brokerage — 0.3%
	535,000	Jefferies Finance LLC/JFIN Co-Issuer Corp., 6.875%, 4/15/2022, 144A		537,675

		Building Materials — 1.7%
	610,000	Beacon Roofing Supply, Inc., 4.875%, 11/01/2025, 144A		561,962
	230,000	Cemex SAB de CV, 5.700%, 1/11/2025, 144A		234,025
	350,000	Cemex SAB de CV, 7.750%, 4/16/2026, 144A		381,500
	420,000	James Hardie International Finance Ltd., 4.750%, 1/15/2025, 144A		406,434
	445,000	James Hardie International Finance Ltd., 5.000%, 1/15/2028, 144A		419,969
	130,000	Jeld-Wen, Inc., 4.625%, 12/15/2025, 144A		119,925
	160,000	Jeld-Wen, Inc., 4.875%, 12/15/2027, 144A		145,800
	50,000	Masco Corp., 6.500%, 8/15/2032		54,801
	535,000	U.S. Concrete, Inc., 6.375%, 6/01/2024		541,259

				2,865,675

		Cable Satellite — 7.0%
	795,000	Altice Financing S.A., 6.625%, 2/15/2023, 144A		800,962
	475,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.125%, 2/15/2023		476,781
	625,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.125%, 5/01/2023, 144A		625,969
	15,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.750%, 1/15/2024		15,244

See accompanying notes to financial statements.

| 22

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Cable Satellite — continued
$	865,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.750%, 2/15/2026, 144A	$	867,162
	1,360,000	CSC Holdings LLC, 5.500%, 4/15/2027, 144A		1,319,200
	75,000	CSC Holdings LLC, 6.750%, 11/15/2021		79,031
	355,000	Sirius XM Radio, Inc., 5.000%, 8/01/2027, 144A		341,585
	800,000	Telenet Finance Luxembourg Notes S.a.r.l., 5.500%, 3/01/2028, 144A		756,512
	1,485,000	Unitymedia GmbH, 6.125%, 1/15/2025, 144A		1,559,250
	265,000	Virgin Media Finance PLC, 6.000%, 10/15/2024, 144A		265,180
	309,000	Virgin Media Finance PLC, 6.375%, 4/15/2023, 144A		316,339
	725,000	Virgin Media Secured Finance PLC, 5.250%, 1/15/2021		744,031
	375,000	Virgin Media Secured Finance PLC, 5.500%, 1/15/2025, 144A		375,000
	3,575,000	Ziggo BV, 5.500%, 1/15/2027, 144A		3,354,244

				11,896,490

		Chemicals — 1.0%
	1,510,000	Hercules LLC, 6.500%, 6/30/2029		1,525,100
	245,000	SASOL Financing USA LLC, 5.875%, 3/27/2024		249,636

				1,774,736

		Construction Machinery — 1.1%
	225,000	Ashtead Capital, Inc., 4.125%, 8/15/2025, 144A		213,750
	245,000	United Rentals North America, Inc., 4.625%, 7/15/2023		246,838
	615,000	United Rentals North America, Inc., 4.625%, 10/15/2025		596,550
	15,000	United Rentals North America, Inc., 5.500%, 5/15/2027		14,831
	800,000	United Rentals North America, Inc., 5.750%, 11/15/2024		823,040

				1,895,009

		Consumer Cyclical Services — 0.4%
	235,000	IHS Markit Ltd., 4.000%, 3/01/2026, 144A		224,866
	350,000	ServiceMaster Co. LLC (The), 7.450%, 8/15/2027		367,937

				592,803

		Consumer Products — 0.4%
	790,000	Coty, Inc., 6.500%, 4/15/2026, 144A		736,181

		Electric — 1.9%
	125,000	AES Corp., 5.125%, 9/01/2027		126,250
	850,000	AES Corp. (The), 4.875%, 5/15/2023		857,437
	479,000	AES Corp. (The), 5.500%, 4/15/2025		490,582
	150,000	AES Corp. (The), 6.000%, 5/15/2026		158,063
	1,502,000	Enel SpA, (fixed rate to 9/24/2023, variable rate thereafter), 8.750%, 9/24/2073, 144A		1,659,710

				3,292,042

		Environmental — 0.1%
	100,000	GFL Environmental, Inc., 5.625%, 5/01/2022, 144A		96,750

		Finance Companies — 3.6%
	1,055,000	Aircastle Ltd., 4.125%, 5/01/2024		1,037,680
	515,000	Aircastle Ltd., 5.500%, 2/15/2022		535,300
	120,000	CIT Group, Inc., 4.125%, 3/09/2021		120,000
	715,000	CIT Group, Inc., 5.000%, 8/01/2023		729,371

See accompanying notes to financial statements.

23 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Finance Companies — continued
$	120,000	iStar, Inc., 4.625%, 9/15/2020	$	119,700
	326,000	iStar, Inc., 5.000%, 7/01/2019		326,546
	395,000	iStar, Inc., 5.250%, 9/15/2022		389,075
	720,000	Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 5.250%, 10/01/2025, 144A		676,800
	255,000	Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 5.875%, 8/01/2021, 144A		258,506
	315,000	Provident Funding Associates LP/PFG Finance Corp., 6.375%, 6/15/2025, 144A		315,000
	620,000	Quicken Loans, Inc., 5.250%, 1/15/2028, 144A		575,825
	710,000	Quicken Loans, Inc., 5.750%, 5/01/2025, 144A		709,113
	405,000	Unifin Financiera SAB de CV SOFOM ENR, 7.250%, 9/27/2023, 144A		400,205

				6,193,121

		Financial Other — 0.5%
	180,000	Icahn Enterprises LP/Icahn Enterprises Finance Corp., 5.875%, 2/01/2022		182,250
	565,000	Icahn Enterprises LP/Icahn Enterprises Finance Corp., 6.000%, 8/01/2020		575,266
	105,000	Icahn Enterprises LP/Icahn Enterprises Finance Corp., 6.250%, 2/01/2022		107,625

				865,141

		Food & Beverage — 2.4%
	405,000	BRF GmbH, 4.350%, 9/29/2026, 144A		344,999
	410,000	BRF S.A., 4.750%, 5/22/2024, 144A		373,100
	840,000	Cosan Luxembourg S.A., 7.000%, 1/20/2027, 144A		824,233
	330,000	JBS USA LUX S.A./JBS USA Finance, Inc., 5.750%, 6/15/2025, 144A		321,338
	255,000	JBS USA LUX S.A./JBS USA Finance, Inc., 7.250%, 6/01/2021, 144A		258,825
	385,000	Marfrig Holdings Europe BV, Class B, 8.000%, 6/08/2023, 144A		386,451
	280,000	Pilgrim’s Pride Corp., 5.750%, 3/15/2025, 144A		269,500
	540,000	Pilgrim’s Pride Corp., 5.875%, 9/30/2027, 144A		510,300
	830,000	Post Holdings, Inc., 5.750%, 3/01/2027, 144A		813,400

				4,102,146

		Gaming — 1.6%
	175,000	Boyd Gaming Corp., 6.375%, 4/01/2026		180,031
	375,000	GLP Capital LP/GLP Financing II, Inc., 5.375%, 4/15/2026		380,816
	700,000	International Game Technology PLC, 6.250%, 2/15/2022, 144A		725,375
	210,000	MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer, Inc., 4.500%, 1/15/2028		192,171
	725,000	MGM Resorts International, 6.000%, 3/15/2023		749,469
	380,000	MGM Resorts International, 7.750%, 3/15/2022		416,100

				2,643,962

		Government Owned – No Guarantee — 1.8%
	695,000	Petrobras Global Finance BV, 5.625%, 5/20/2043		562,950
	515,000	Petrobras Global Finance BV, 5.750%, 2/01/2029		459,818
	139,131(††)	Petroleos Mexicanos, 7.190%, 9/12/2024, 144A, (MXN)(e)		641,457
	121,278(††)	Petroleos Mexicanos, 7.470%, 11/12/2026, (MXN)(e)		536,049
	710,000	YPF S.A., 6.950%, 7/21/2027, 144A		621,037

See accompanying notes to financial statements.

| 24

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Government Owned – No Guarantee — continued
$	510,000	YPF S.A., Argentina Deposit Rates Badlar Private Banks + 4.000%, 36.750%, 7/07/2020, 144A(d)	$	203,318

				3,024,629

		Health Insurance — 0.2%
	365,000	Centene Corp., 6.125%, 2/15/2024		383,250

		Healthcare — 4.5%
	105,000	HCA Healthcare, Inc., 6.250%, 2/15/2021		109,463
	25,000	HCA, Inc., 5.250%, 4/15/2025		25,781
	260,000	HCA, Inc., 5.375%, 2/01/2025		265,200
	170,000	HCA, Inc., 7.050%, 12/01/2027		182,325
	655,000	HCA, Inc., 7.500%, 12/15/2023		720,500
	145,000	HCA, Inc., 7.500%, 11/06/2033		157,163
	590,000	HCA, Inc., 7.690%, 6/15/2025		659,325
	480,000	HCA, Inc., 8.360%, 4/15/2024		546,000
	820,000	HCA, Inc., MTN, 7.580%, 9/15/2025		912,250
	515,000	HCA, Inc., MTN, 7.750%, 7/15/2036		561,350
	275,000	Hologic, Inc., 4.375%, 10/15/2025, 144A		263,483
	315,000	Hologic, Inc., 4.625%, 2/01/2028, 144A		296,494
	200,000	IQVIA, Inc., 5.000%, 10/15/2026, 144A		196,500
	800,000	Polaris Intermediate Corp., PIK, 8.500%, 12/01/2022, 144A(f)		826,592
	390,000	Tenet Healthcare Corp., 5.125%, 5/01/2025		384,150
	180,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		161,136
	830,000	Tenet Healthcare Corp., 7.500%, 1/01/2022, 144A		866,312
	430,000	Wright Medical Group, Inc., 1.625%, 6/15/2023, 144A		454,456

				7,588,480

		Home Construction — 2.2%
	1,200,000	Corporacion GEO SAB de CV, 8.875%, 3/27/2022, 144A(a)(c)(g)(h)		12
	750,000	K. Hovnanian Enterprises, Inc., 5.000%, 11/01/2021		670,027
	305,000	Lennar Corp., 4.125%, 1/15/2022		301,950
	800,000	Lennar Corp., 4.750%, 5/30/2025		780,000
	1,130,000	PulteGroup, Inc., 5.500%, 3/01/2026		1,124,350
	915,000	TRI Pointe Group, Inc./TRI Pointe Homes, Inc., 4.375%, 6/15/2019		919,575

				3,795,914

		Independent Energy — 9.0%
	460,000	Aker BP ASA, 5.875%, 3/31/2025, 144A		474,950
	335,000	Aker BP ASA, 6.000%, 7/01/2022, 144A		345,469
	202,000	Ascent Resources Utica Holdings LLC/ARU Finance Corp., 10.000%, 4/01/2022, 144A		227,250
	685,000	Baytex Energy Corp., 5.625%, 6/01/2024, 144A		654,175
	240,000	Bruin E&P Partners LLC, 8.875%, 8/01/2023, 144A		247,200
	90,000	California Resources Corp., 5.500%, 9/15/2021		82,899
	41,000	California Resources Corp., 6.000%, 11/15/2024		34,850
	460,000	California Resources Corp., 8.000%, 12/15/2022, 144A		439,300
	140,000	Callon Petroleum Co., 6.125%, 10/01/2024		142,450
	153,000	Chesapeake Energy Corp., 4.875%, 4/15/2022		148,601

See accompanying notes to financial statements.

25 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Independent Energy — continued
$	8,000	Chesapeake Energy Corp., 5.750%, 3/15/2023	$	7,790
	13,000	Chesapeake Energy Corp., 6.125%, 2/15/2021		13,325
	34,000	Chesapeake Energy Corp., 6.625%, 8/15/2020		35,530
	795,000	CNX Resources Corp., 5.875%, 4/15/2022		795,238
	645,000	Continental Resources, Inc., 3.800%, 6/01/2024		632,527
	235,000	Continental Resources, Inc., 4.500%, 4/15/2023		239,136
	376,000	Continental Resources, Inc., 5.000%, 9/15/2022		381,452
	690,000	Eclipse Resources Corp., 8.875%, 7/15/2023		702,075
	595,000	Gulfport Energy Corp., 6.375%, 5/15/2025		583,100
	265,000	Gulfport Energy Corp., 6.375%, 1/15/2026		257,713
	202,000	Halcon Resources Corp., 6.750%, 2/15/2025		193,920
	605,000	Matador Resources Co., 5.875%, 9/15/2026, 144A		612,562
	410,000	MEG Energy Corp., 6.375%, 1/30/2023, 144A		373,100
	1,250,000	MEG Energy Corp., 6.500%, 1/15/2025, 144A		1,237,500
	585,000	MEG Energy Corp., 7.000%, 3/31/2024, 144A		533,812
	185,000	Newfield Exploration Co., 5.625%, 7/01/2024		194,944
	592,000	Oasis Petroleum, Inc., 6.875%, 3/15/2022		602,348
	210,000	PDC Energy, Inc., 5.750%, 5/15/2026		199,500
	205,000	PDC Energy, Inc., 6.125%, 9/15/2024		201,669
	1,150,000	Rex Energy Corp., 8.000%, 10/01/2020(g)		310,500
	330,000	Sanchez Energy Corp., 6.125%, 1/15/2023		188,100
	755,000	Sanchez Energy Corp., 7.250%, 2/15/2023, 144A		743,675
	685,000	Seven Generations Energy Ltd., 5.375%, 9/30/2025, 144A		666,162
	175,000	Seven Generations Energy Ltd., 6.875%, 6/30/2023, 144A		181,125
	920,000	SM Energy Co., 5.000%, 1/15/2024		895,850
	27,000	SM Energy Co., 6.125%, 11/15/2022		27,810
	45,000	SM Energy Co., 6.625%, 1/15/2027		46,519
	190,000	SM Energy Co., 6.750%, 9/15/2026		197,363
	395,000	Southwestern Energy Co., 6.200%, 1/23/2025		392,037
	285,000	Southwestern Energy Co., 7.500%, 4/01/2026		298,538
	405,000	Whiting Petroleum Corp., 5.750%, 3/15/2021		415,125
	50,000	Whiting Petroleum Corp., 6.250%, 4/01/2023		51,758
	355,000	Whiting Petroleum Corp., 6.625%, 1/15/2026		369,200

				15,378,147

		Integrated Energy — 0.2%
	200,000	Geopark Ltd., 6.500%, 9/21/2024, 144A		201,408
	200,000	Hunt Oil Co. of Peru LLC Sucursal Del Peru, 6.375%, 6/01/2028, 144A		205,760

				407,168

		Life Insurance — 0.2%
	340,000	CNO Financial Group, Inc., 5.250%, 5/30/2025		347,650

		Local Authorities — 0.5%
	325,000	Provincia de Buenos Aires, 6.500%, 2/15/2023, 144A		284,297
	270,000	Provincia de Buenos Aires, 7.875%, 6/15/2027, 144A		224,508
	16,365,000	Provincia de Buenos Aires, Argentina Deposit Rates Badlar Private Banks + 3.750%, 41.144%, 4/12/2025, (ARS)(d)		349,519

See accompanying notes to financial statements.

| 26

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Local Authorities — continued
	2,390,000	Provincia de Buenos Aires, Argentina Deposit Rates Badlar Private Banks + 3.830%, 45.780%, 5/31/2022, (ARS)(d)	$	53,932

				912,256

		Lodging — 1.2%
	150,000	Hilton Domestic Operating Co., Inc., 4.250%, 9/01/2024		145,170
	755,000	Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., 4.625%, 4/01/2025		735,181
	365,000	Marriott Ownership Resorts, Inc., 6.500%, 9/15/2026, 144A		374,636
	820,000	Wyndham Destinations, Inc., 5.625%, 3/01/2021		836,400

				2,091,387

		Media Entertainment — 3.2%
	890,000	AMC Networks, Inc., 4.750%, 8/01/2025		851,063
	1,155,000	Clear Channel Worldwide Holdings, Inc., Series B, 6.500%, 11/15/2022		1,175,212
	1,305,000	Clear Channel Worldwide Holdings, Inc., Series B, 7.625%, 3/15/2020		1,308,262
	1,115,000	iHeartCommunications, Inc., 9.000%, 12/15/2019(g)		839,038
	395,000	Meredith Corp., 6.875%, 2/01/2026, 144A		404,875
	890,000	Netflix, Inc., 4.875%, 4/15/2028, 144A		836,600

				5,415,050

		Metals & Mining — 1.5%
	190,000	Commercial Metals Co., 4.875%, 5/15/2023		188,404
	400,000	First Quantum Minerals Ltd., 6.500%, 3/01/2024, 144A		366,000
	625,000	First Quantum Minerals Ltd., 7.000%, 2/15/2021, 144A		617,969
	670,000	First Quantum Minerals Ltd., 7.250%, 5/15/2022, 144A		655,763
	850,000	Gerdau Trade, Inc., 4.875%, 10/24/2027, 144A		789,284

				2,617,420

		Midstream — 3.9%
	820,000	DCP Midstream Operating LP, 4.750%, 9/30/2021, 144A		832,300
	1,265,000	Hess Infrastructure Partners LP/Hess Infrastructure Partners Finance Corp., 5.625%, 2/15/2026, 144A		1,277,650
	570,000	NGL Energy Partners LP/NGL Energy Finance Corp., 5.125%, 7/15/2019		572,844
	200,000	NGL Energy Partners LP/NGL Energy Finance Corp., 6.125%, 3/01/2025		187,500
	135,000	NGL Energy Partners LP/NGL Energy Finance Corp., 6.875%, 10/15/2021		137,525
	405,000	NGL Energy Partners LP/NGL Energy Finance Corp., 7.500%, 11/01/2023		405,000
	165,000	NGPL PipeCo LLC, 4.375%, 8/15/2022, 144A		166,237
	700,000	NGPL PipeCo LLC, 4.875%, 8/15/2027, 144A		696,500
	385,000	SemGroup Corp./Rose Rock Finance Corp., 5.625%, 7/15/2022		382,112
	935,000	Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 5.500%, 8/15/2022		931,494
	95,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 4.250%, 11/15/2023		92,744
	640,000	Targa Resources Partners LP/Targa Resources Partners Finance Corp., 5.250%, 5/01/2023		647,200
	305,000	Transportadora de Gas del Sur S.A., 6.750%, 5/02/2025, 144A		292,779

				6,621,885

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Non-Agency Commercial Mortgage-Backed Securities — 0.9%
$	100,000	CG-CCRE Commercial Mortgage Trust, Series 2014-FL2, Class COL1, 1-month LIBOR + 3.500%, 5.658%, 11/15/2031, 144A(d)(h)(i)	$	95,584
	225,000	CG-CCRE Commercial Mortgage Trust, Series 2014-FL2, Class COL2, 1-month LIBOR + 4.500%, 6.658%, 11/15/2031, 144A(d)(h)(i)		210,428
	1,020,000	Credit Suisse Mortgage Trust, Series 2014-USA, Class E, 4.373%, 9/15/2037, 144A		913,181
	111,701	GS Mortgage Securities Trust, Series 2007-GG10, Class AM, 5.977%, 8/10/2045(b)		113,174
	18,435	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX, Class AM, 5.464%, 1/15/2049(b)		18,468
	125,000	WFRBS Commercial Mortgage Trust, Series 2012-C7, Class E, 4.977%, 6/15/2045, 144A(b)		102,994

				1,453,829

		Oil Field Services — 1.5%
	430,000	Ensco PLC, 5.750%, 10/01/2044		321,425
	160,000	Noble Holding International Ltd., 5.250%, 3/15/2042		115,500
	160,000	Noble Holding International Ltd., 6.050%, 3/01/2041		122,600
	420,000	Noble Holding International Ltd., 7.750%, 1/15/2024		416,850
	530,000	Noble Holding International Ltd., 7.875%, 2/01/2026, 144A		549,875
	405,000	Shelf Drilling Holdings Ltd., 8.250%, 2/15/2025, 144A		417,656
	175,000	Transocean Guardian Ltd., 5.875%, 1/15/2024, 144A		176,531
	238,000	Transocean Proteus Ltd., 6.250%, 12/01/2024, 144A		242,165
	175,000	Transocean, Inc., 7.500%, 1/15/2026, 144A		180,688

				2,543,290

		Packaging — 1.0%
	200,000	ARD Finance S.A., PIK, 7.125%, 9/15/2023(f)		201,500
	395,000	Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc., 4.625%, 5/15/2023, 144A		391,050
	200,000	Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc., 7.250%, 5/15/2024, 144A		209,250
	610,000	Berry Global, Inc., 4.500%, 2/15/2026, 144A		579,500
	350,000	Crown Americas LLC/Crown Americas Capital Corp., 4.750%, 2/01/2026, 144A		334,250

				1,715,550

		Paper — 0.2%
	440,000	Klabin Finance S.A., 4.875%, 9/19/2027, 144A		391,600

		Pharmaceuticals — 1.6%
	265,000	Bausch Health Cos., Inc., 5.500%, 3/01/2023, 144A		255,063
	85,000	Bausch Health Cos., Inc., 5.625%, 12/01/2021, 144A		84,681
	990,000	Bausch Health Cos., Inc., 5.875%, 5/15/2023, 144A		965,250
	280,000	Catalent Pharma Solutions, Inc., 4.875%, 1/15/2026, 144A		269,500
	865,000	Teva Pharmaceutical Finance Co. BV, 2.950%, 12/18/2022		803,234
	380,000	Teva Pharmaceutical Finance Netherlands III BV, 4.100%, 10/01/2046		277,038

				2,654,766

See accompanying notes to financial statements.

| 28

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Property & Casualty Insurance — 1.0%
	435,000	Ardonagh Midco 3 PLC, 8.375%, 7/15/2023, 144A, (GBP)	$	550,117
	1,110,000	Ardonagh Midco 3 PLC, 8.625%, 7/15/2023, 144A		1,096,303

				1,646,420

		Refining — 0.4%
	635,000	Parkland Fuel Corp., 6.000%, 4/01/2026, 144A		636,588

		Restaurants — 0.5%
	890,000	1011778 B.C. ULC/New Red Finance, Inc., 5.000%, 10/15/2025, 144A		852,184

		Retailers — 1.5%
	430,000	Asbury Automotive Group, Inc., 6.000%, 12/15/2024		434,300
	40,000	Dillard’s, Inc., 7.000%, 12/01/2028		41,951
	435,000	Dillard’s, Inc., 7.750%, 7/15/2026		480,227
	205,000	Dillard’s, Inc., 7.750%, 5/15/2027		224,938
	820,000	Group 1 Automotive, Inc., 5.000%, 6/01/2022		815,900
	475,000	L Brands, Inc., 6.750%, 7/01/2036		391,875
	180,000	L Brands, Inc., 6.875%, 11/01/2035		152,100

				2,541,291

		Sovereigns — 0.2%
	10,810,000	Argentina Politica Monetaria, Argentina Central Bank 7-day Repo Reference Rate, 43.077%, 6/21/2020, (ARS)(d)		312,695

		Supermarkets — 0.6%
	335,000	Albertson’s Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, 5.750%, 3/15/2025		301,500
	935,000	New Albertsons LP, Series C, MTN, 6.625%, 6/01/2028		708,263

				1,009,763

		Technology — 4.4%
	416,000	Blackboard, Inc., 9.750%, 10/15/2021, 144A		327,600
	170,000	Camelot Finance S.A., 7.875%, 10/15/2024, 144A		169,453
	60,000	CommScope Technologies LLC, 6.000%, 6/15/2025, 144A		61,800
	1,205,000	Dell International LLC/EMC Corp., 6.020%, 6/15/2026, 144A		1,287,943
	410,000	Equinix, Inc., 5.375%, 4/01/2023		419,738
	430,000	First Data Corp., 5.000%, 1/15/2024, 144A		432,688
	420,000	First Data Corp., 5.375%, 8/15/2023, 144A		426,405
	800,000	First Data Corp., 7.000%, 12/01/2023, 144A		833,000
	95,000	Micron Technology, Inc., 5.500%, 2/01/2025		98,241
	850,000	NXP BV / NXP Funding LLC, 3.875%, 9/01/2022, 144A		841,500
	515,000	Open Text Corp., 5.625%, 1/15/2023, 144A		522,725
	190,000	Open Text Corp., 5.875%, 6/01/2026, 144A		195,581
	275,000	Sabre GLBL, Inc., 5.250%, 11/15/2023, 144A		275,000
	405,000	Sabre GLBL, Inc., 5.375%, 4/15/2023, 144A		407,503
	435,000	Veritas U.S., Inc./Veritas Bermuda Ltd., 10.500%, 2/01/2024, 144A		398,025
	900,000	Western Digital Corp., 4.750%, 2/15/2026		870,367

				7,567,569

		Transportation Services — 0.1%
	275,000	APL Ltd., 8.000%, 1/15/2024(h)(i)		247,500

See accompanying notes to financial statements.

29 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Treasuries — 5.0%
	29,260,000	South Africa Government International Bond, 8.750%, 1/31/2044, (ZAR)	$	1,842,785
	6,755,000	U.S. Treasury Note, 2.625%, 7/31/2020(e)		6,732,835

				8,575,620

		Wireless — 3.0%
	200,000	Millicom International Cellular S.A., 5.125%, 1/15/2028, 144A		184,000
	105,000	Nokia Oyj, 3.375%, 6/12/2022		102,915
	865,000	Nokia Oyj, 4.375%, 6/12/2027		832,562
	786,000	Sprint Capital Corp., 6.875%, 11/15/2028		789,930
	1,420,000	Sprint Corp., 7.250%, 9/15/2021		1,501,650
	315,000	T-Mobile USA, Inc., 4.500%, 2/01/2026		300,627
	895,000	T-Mobile USA, Inc., 4.750%, 2/01/2028		842,419
	530,000	T-Mobile USA, Inc., 6.000%, 4/15/2024		549,212

				5,103,315

		Wirelines — 1.1%
	130,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		121,550
	1,060,000	Frontier Communications Corp., 8.500%, 4/01/2026, 144A		1,001,700
	405,000	Frontier Communications Corp., 9.000%, 8/15/2031		257,175
	120,000	Telecom Italia Capital S.A., 7.200%, 7/18/2036		124,500
	505,000	Windstream Services LLC/Windstream Finance Corp., 10.500%, 6/30/2024, 144A		429,250

				1,934,175

		Total Non-Convertible Bonds (Identified Cost $144,831,371)		141,733,838


	Convertible Bonds — 9.8%
		Automotive — 0.1%
	110,000	Meritor, Inc., 3.250%, 10/15/2037		104,977

		Cable Satellite — 1.2%
	1,455,000	DISH Network Corp., 2.375%, 3/15/2024		1,289,616
	825,000	DISH Network Corp., 3.375%, 8/15/2026		786,857

				2,076,473

		Consumer Cyclical Services — 0.5%
	910,000	Macquarie Infrastructure Corp., 2.000%, 10/01/2023		817,795

		Diversified Operations — 0.1%
	160,000	RWT Holdings, Inc., 5.625%, 11/15/2019		161,478

		Healthcare — 0.4%
	325,000	Evolent Health, Inc., 2.000%, 12/01/2021		436,578
	125,000	Insulet Corp., 1.375%, 11/15/2024, 144A		158,032

				594,610

		Independent Energy — 0.7%
	840,000	Chesapeake Energy Corp., 5.500%, 9/15/2026		829,707
	275,000	PDC Energy, Inc., 1.125%, 9/15/2021		266,148
	170,000	Whiting Petroleum Corp., 1.250%, 4/01/2020		163,039

				1,258,894

See accompanying notes to financial statements.

| 30

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Industrial Other — 0.2%
$	340,000	Tutor Perini Corp., 2.875%, 6/15/2021	$	346,800

		Leisure — 0.1%
	185,000	Rovi Corp., 0.500%, 3/01/2020		174,475

		Midstream — 0.0%
	60,000	SM Energy Co., 1.500%, 7/01/2021		65,676

		Oil Field Services — 0.4%
	860,000	Nabors Industries, Inc., 0.750%, 1/15/2024		672,735

		Pharmaceuticals — 3.2%
	1,805,000	BioMarin Pharmaceutical, Inc., 0.599%, 8/01/2024		1,923,682
	435,000	BioMarin Pharmaceutical, Inc., 1.500%, 10/15/2020		521,827
	115,000	Dermira, Inc., 3.000%, 5/15/2022		95,432
	410,000	Flexion Therapeutics, Inc., 3.375%, 5/01/2024		413,991
	465,000	Horizon Pharma Investment Ltd., 2.500%, 3/15/2022		467,745
	855,000	Intercept Pharmaceuticals, Inc., 3.250%, 7/01/2023		864,084
	840,000	Ionis Pharmaceuticals, Inc., 1.000%, 11/15/2021		882,000
	125,000	Neurocrine Biosciences, Inc., 2.250%, 5/15/2024		213,073

				5,381,834

		Railroads — 0.3%
	395,000	Greenbrier Cos., Inc. (The), 2.875%, 2/01/2024		467,104

		REITs – Mortgage — 0.2%
	435,000	iStar, Inc., 3.125%, 9/15/2022, 144A		422,879

		Technology — 2.2%
	455,000	Avaya Holdings Corp., 2.250%, 6/15/2023, 144A		461,752
	1,370,000	Finisar Corp., 0.500%, 12/15/2036		1,254,979
	100,000	MagnaChip Semiconductor S.A., 5.000%, 3/01/2021		139,312
	1,105,000	Nuance Communications, Inc., 1.000%, 12/15/2035		1,042,932
	315,000	Nuance Communications, Inc., 1.250%, 4/01/2025		325,326
	450,000	Verint Systems, Inc., 1.500%, 6/01/2021		463,467

				3,687,768

		Wirelines — 0.2%
	350,000	GCI Liberty, Inc., 1.750%, 9/30/2046, 144A		384,667

		Total Convertible Bonds (Identified Cost $16,406,766)		16,618,165


		Total Bonds and Notes (Identified Cost $161,238,137)		158,352,003


	Loan Participations — 0.3%
		ABS Other — 0.3%
	431,418	Harbour Aircraft Investments Ltd., Series 2017-1, Class C, 8.000%, 11/15/2037(a)(c) (Identified Cost $430,422)		437,015

See accompanying notes to financial statements.

31 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Principal Amount (‡)		Description		Value (†)
	Senior Loans — 1.1%
		Retailers — 0.2%
$	462,250	J.C. Penney Corp., Inc., 2016 Term Loan B, 6/23/2023(j)		$	423,883

		Supermarkets — 0.3%
	428,881	Albertsons LLC, USD 2017 Term Loan B4, 1-month LIBOR + 2.750%, 4.992%, 8/25/2021(d)			429,237

		Transportation Services — 0.6%
	1,039,617	Uber Technologies, 2018 Term Loan, 1-month LIBOR + 4.000%, 6.120%, 4/04/2025(d)			1,045,138

		Total Senior Loans (Identified Cost $1,890,987)			1,898,258


Shares
	Preferred Stocks — 1.4%
	Convertible Preferred Stocks — 1.4%
		Food & Beverage — 1.0%
	14,765	Bunge Ltd., 4.875%			1,588,714

		Midstream — 0.4%
	20	Chesapeake Energy Corp., 5.750%, 144A			12,582
	137	Chesapeake Energy Corp., 5.750%			82,039
	988	Chesapeake Energy Corp., 5.750%			621,541

					716,162

		Total Convertible Preferred Stocks (Identified Cost $2,234,677)			2,304,876


	Non-Convertible Preferred Stocks — 0.0%
		Finance Companies — 0.0%
	550	iStar, Inc., Series G, 7.650% (Identified Cost $10,956)			13,370

		Total Preferred Stocks (Identified Cost $2,245,633)			2,318,246


	Common Stocks — 1.2%
		Media — 0.0%
	4,113	Dex Media, Inc.(k)(l)			43,187

		Oil, Gas & Consumable Fuels — 0.9%
	8,864	Bonanza Creek Energy, Inc.(l)			263,970
	16,530	Frontera Energy Corp.(l)			233,684
	12,992	Halcon Resources Corp.(l)			58,074
	14,882	Kinder Morgan, Inc.			263,858
	3,405	Paragon Offshore Ltd., Litigation Units, Class A(k)(l)			2,751
	5,106	Paragon Offshore Ltd., Litigation Units, Class B(k)(l)			197,857
	1,725	Rex Energy Corp.(l)	��		113
	9,390	Whiting Petroleum Corp.(l)			498,046

					1,518,353

See accompanying notes to financial statements.

| 32

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)


Shares		Description	Value (†)
		Pharmaceuticals — 0.3%
	1,189	Allergan PLC	$	226,481
	5,539	Bristol-Myers Squibb Co.		343,861

				570,342

		Total Common Stocks (Identified Cost $5,359,849)		2,131,882


	Warrants — 0.0%
	3,528	Halcon Resources Corp., Expiration on 9/9/2020 at $14.04(l) (Identified Cost $0)		353


	Other Investments — 0.5%
		Aircraft ABS — 0.5%
	8,415	Aergen LLC(a)(c)(h)(k)		8
	100	ECAF I Blocker Ltd.(a)(c)(h)(k)		896,875

		Total Aircraft ABS (Identified Cost $1,000,000)		896,883


Principal Amount (‡)
	Short-Term Investments — 0.9%
$	1,484,006	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/28/2018 at 1.300% to be repurchased at $1,484,167 on 10/01/2018 collateralized by $950,000 U.S. Treasury Bond, 3.125% due 8/15/2044 valued at $943,532; $590,000 U.S. Treasury Note, 2.000% due 10/31/2022 valued at $573,404 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $1,484,006)		1,484,006


		Total Investments — 98.3% (Identified Cost $173,649,034)		167,518,646
		Other assets less liabilities — 1.7%		2,940,852

		Net Assets — 100.0%	$	170,459,498


	(‡)	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)	Level 3 security. Value has been determined using significant unobservable inputs. See Note 3 of Notes to Financial Statements.
	(b)	Variable rate security. The interest rate adjusts periodically based on; (i) changes in current interest rates and/or prepayments on underlying pools of assets, if applicable, (ii) reference to a base lending rate plus or minus a margin, and/or (iii) reference to a base lending rate adjusted by a multiplier and/or subject to certain floors or caps. Rate as of September 30, 2018 is disclosed.

See accompanying notes to financial statements.

33 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)



	(c)			Fair valued by the Fund’s adviser. At September 30, 2018, the value of these securities amounted to $1,334,593 or 0.8% of net assets. See Note 2 of Notes to Financial Statements.
	(d)			Variable rate security. Rate as of September 30, 2018 is disclosed.
	(e)			Security (or a portion thereof) has been designated to cover the Fund’s obligations under open derivative contracts.
	(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 principal. For the period ended September 30, 2018, interest payments were made in cash.
	(g)			The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
	(h)			Illiquid security. (Unaudited)
	(i)			Securities classified as fair valued pursuant to the Fund’s pricing policies and procedures. At September 30, 2018, the value of these securities amounted to $553,512 or 0.3% of net assets. See Note 2 of Notes to Financial Statements.
	(j)			Position is unsettled. Contract rate was not determined at September 30, 2018 and does not take effect until settlement date. Maturity date is not finalized until settlement date.
	(k)			Securities subject to restriction on resale. At September 30, 2018, the restricted securities held by the Fund are as follows:



	Acquisition Date		Acquisition Cost		Value		% of Net Assets
Aergen LLC		March 06, 2017	$	841,500	$	8		Less than 0.1	%
Dex Media, Inc.		August 12, 2016		20,040		43,187		Less than 0.1	%
ECAF I Blocker Ltd.		December 20, 2016		1,000,000		896,875		0.5	%
Paragon Offshore Ltd., Litigation Units, Class A		July 18, 2017		25,887		2,751		Less than 0.1	%
Paragon Offshore Ltd., Litigation Units, Class B		July 18, 2017		517,958		197,857		0.1	%


	(l)			Non-income producing security.

	144A			All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2018, the value of Rule 144A holdings amounted to $69,804,211 or 41.0% of net assets.
	ABS			Asset-Backed Securities
	LIBOR			London Interbank Offered Rate
	MTN			Medium Term Note
	PIK			Payment-in-Kind
	REITs			Real Estate Investment Trusts

	ARS			Argentine Peso
	GBP			British Pound
	MXN			Mexican Peso
	ZAR			South African Rand

See accompanying notes to financial statements.

| 34

Portfolio of Investments – as of September 30, 2018

Loomis Sayles High Income Fund – (continued)

At September 30, 2018, the Fund had the following open forward foreign currency contracts:


Counterparty	Delivery Date		Currency Bought/ Sold (B/S)		Units of Currency		In Exchange for		Notional Value		Unrealized Appreciation (Depreciation)
HSBC Bank USA		11/02/2018	GBP	S		340,000	$	447,366	$	443,765	$	3,601
Goldman Sachs & Co.		11/16/2018	MXN	B		14,645,000		764,372		777,100		12,728
Goldman Sachs & Co.		11/16/2018	MXN	S		33,505,000		1,719,881		1,777,858		(57,977	)
Bank of America, N.A.		11/02/2018	ZAR	S		25,220,000		1,902,463		1,776,131		126,332

Total											$	84,684

Industry Summary at September 30, 2018


Independent Energy	9.7	%
Cable Satellite	8.2
Technology	6.6
Banking	5.3
Pharmaceuticals	5.1
Treasuries	5.0
Healthcare	4.9
Midstream	4.3
Finance Companies	3.6
Food & Beverage	3.4
Media Entertainment	3.2
Wireless	3.0
Home Construction	2.2
Other Investments, less than 2% each	32.9
Short-Term Investments	0.9

Total Investments	98.3
Other assets less liabilities (including forward foreign currency contracts)	1.7

Net Assets	100.0	%

Currency Exposure Summary at September 30, 2018


United States Dollar	95.3	%
Other, less than 2% each	3.0

Total Investments	98.3
Other assets less liabilities (including forward foreign currency contracts)	1.7

Net Assets	100.0	%

See accompanying notes to financial statements.

35 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund


Principal Amount		Description	Value (†)
	Bonds and Notes — 98.1% of Net Assets
		ABS Car Loan — 11.0%
$	116,052	ACC Trust, Series 2018-1, Class A, 3.700%, 12/21/2020, 144A	$	115,997
	152,000	AmeriCredit Automobile Receivables Trust, Series 2016-1, Class C, 2.890%, 1/10/2022		151,824
	72,000	AmeriCredit Automobile Receivables Trust, Series 2016-2, Class C, 2.870%, 11/08/2021		71,841
	160,000	AmeriCredit Automobile Receivables Trust, Series 2016-3, Class C, 2.240%, 4/08/2022		157,709
	555,000	Americredit Automobile Receivables Trust, Series 2016-4, Class B, 1.830%, 12/08/2021(a)		547,858
	110,000	AmeriCredit Automobile Receivables Trust, Series 2017-1, Class B, 2.300%, 2/18/2022		108,867
	300,000	AmeriCredit Automobile Receivables Trust, Series 2017-2, Class B, 2.400%, 5/18/2022		296,351
	170,000	AmeriCredit Automobile Receivables Trust, Series 2017-3, Class B, 2.240%, 6/19/2023		166,945
	210,000	Avis Budget Rental Car Funding AESOP LLC, Series 2014-1A, Class A, 2.460%, 7/20/2020, 144A		209,448
	360,000	Avis Budget Rental Car Funding AESOP LLC, Series 2016-1A, Class A, 2.990%, 6/20/2022, 144A(a)		355,320
	365,000	Avis Budget Rental Car Funding AESOP LLC, Series 2017-1A, Class A, 3.070%, 9/20/2023, 144A(a)		355,696
	285,000	Bank of the West Auto Trust, Series 2017-1, Class A3, 2.110%, 1/15/2023, 144A		280,042
	520,000	California Republic Auto Recievables Trust, Series 2017-1, Class A4, 2.280%, 6/15/2022(a)		513,907
	175,000	Capital Auto Receivables Asset Trust, Series 2017-1, Class A3, 2.020%, 8/20/2021, 144A		173,505
	1,000,000	CarMax Auto Owner Trust, Series 2017-2, Class A3, 1.930%, 3/15/2022(a)		987,881
	239,290	Chrysler Capital Auto Receivables Trust, Series 2016-BA, Class A3, 1.640%, 7/15/2021, 144A		238,022
	69,601	CIG Auto Receivables Trust, Series 2017-1A, Class A, 2.710%, 5/15/2023, 144A		69,126
	194,309	CPS Auto Receivables Trust, Series 2015-A, Class B, 2.790%, 2/16/2021, 144A		194,334
	125,000	CPS Auto Receivables Trust, Series 2017-C, Class B, 2.300%, 7/15/2021, 144A		124,261
	800,000	Credit Acceptance Auto Loan Trust, Series 2016-2A, Class B, 3.180%, 5/15/2024, 144A		800,168
	275,000	Credit Acceptance Auto Loan Trust, Series 2016-3A, Class A, 2.150%, 4/15/2024, 144A		273,773
	214,868	Drive Auto Receivables Trust, Series 2016-BA, Class C, 3.190%, 7/15/2022, 144A		215,151
	23,148	Drive Auto Receivables Trust, Series 2016-CA, Class B, 2.370%, 11/16/2020, 144A		23,142
	185,000	Drive Auto Receivables Trust, Series 2017-3, Class C, 2.800%, 7/15/2022		184,506
	230,000	Drive Auto Receivables Trust, Series 2017-AA, Class C, 2.980%, 1/18/2022, 144A		229,791
	273,838	Drive Auto Receivables Trust, Series 2017-BA, Class C, 2.610%, 8/16/2021, 144A		273,544
	60,000	DT Auto Owner Trust, Series 18-2A, Class C, 3.670%, 3/15/2024, 144A		60,018
	88,374	DT Auto Owner Trust, Series 2015-2A, Class D, 4.250%, 2/15/2022, 144A		88,885
	327,093	DT Auto Owner Trust, Series 2015-3A, Class D, 4.530%, 10/17/2022, 144A		329,729
	255,000	DT Auto Owner Trust, Series 2016-2A, Class D, 5.430%, 11/15/2022, 144A		259,009

See accompanying notes to financial statements.

| 36

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		ABS Car Loan — continued
$	354,772	DT Auto Owner Trust, Series 2016-4A, Class C, 2.740%, 10/17/2022, 144A(a)	$	354,739
	90,000	DT Auto Owner Trust, Series 2017-1A, Class C, 2.700%, 11/15/2022, 144A		89,832
	350,000	DT Auto Owner Trust, Series 2017-3A, Class B, 2.400%, 5/17/2021, 144A		349,047
	300,000	Exeter Automobile Receivables Trust, Series 2017-2A, Class B, 2.820%, 5/16/2022, 144A		298,344
	190,000	Exeter Automobile Receivables Trust, Series 2018-1A, Class B, 2.750%, 4/15/2022, 144A		188,799
	400,000	Exeter Automobile Receivables Trust, Series 2018-2A, Class B, 3.270%, 5/16/2022, 144A		398,963
	260,000	First Investors Auto Owner Trust, Series 2017-1A, Class A2, 2.200%, 3/15/2022, 144A		258,032
	315,000	First Investors Auto Owner Trust, Series 2017-2A, Class A2, 2.270%, 7/15/2022, 144A		311,683
	290,000	Flagship Credit Auto Trust, Series 2015-2, Class B, 3.080%, 12/15/2021, 144A		290,011
	195,000	Flagship Credit Auto Trust, Series 2016-2, Class B, 3.840%, 9/15/2022, 144A		196,056
	135,000	Flagship Credit Auto Trust, Series 2016-3, Class B, 2.430%, 6/15/2021, 144A		134,371
	160,000	Flagship Credit Auto Trust, Series 2016-4, Class B, 2.410%, 10/15/2021, 144A		159,066
	230,000	Ford Credit Auto Owner Trust, Series 2014-2, Class A, 2.310%, 4/15/2026, 144A		228,519
	705,000	Ford Credit Auto Owner Trust, Series 2016-2, Class A, 2.030%, 12/15/2027, 144A(a)		681,871
	595,000	Ford Credit Auto Owner Trust, Series 2018-1, Class A, 3.190%, 7/15/2031, 144A(a)		580,074
	115,000	Ford Credit Auto Owner Trust/Ford Credit, Series 2014-1, Class A, 2.260%, 11/15/2025, 144A		114,624
	113,416	GM Financial Automobile Leasing Trust, Series 2016-2, Class A3, 1.620%, 9/20/2019		113,273
	275,000	GM Financial Consumer Automobile, Series 2017-1A, Class A3, 1.780%, 10/18/2021, 144A		271,980
	500,000	GM Financial Consumer Automobile Receivables Trust, Series 2017-3A, Class A3, 1.970%, 5/16/2022, 144A(a)		492,125
	120,000	NextGear Floorplan Master Owner Trust, Series 2016-2A, Class A2, 2.190%, 9/15/2021, 144A		119,010
	510,000	NextGear Floorplan Master Owner Trust, Series 2017-1A, Class A2, 2.540%, 4/18/2022, 144A(a)		504,696
	150,000	NextGear Floorplan Master Owner Trust, Series 2017-2A, Class A2, 2.560%, 10/17/2022, 144A		147,879
	125,000	NextGear Floorplan Master Owner Trust, Series 2018-1A, Class A2, 3.220%, 2/15/2023, 144A		124,196
	505,000	Prestige Auto Receivables Trust, Series 2016-2A, Class A3, 1.760%, 1/15/2021, 144A(a)		503,663
	188,000	Santander Drive Auto Receivables Trust, Series 2016-2, Class C, 2.660%, 11/15/2021		187,534
	165,000	Santander Drive Auto Receivables Trust, Series 2017-1, Class B, 2.100%, 6/15/2021		164,541
	265,000	Santander Drive Auto Receivables Trust, Series 2017-2, Class B, 2.210%, 10/15/2021		264,195
	370,000	Santander Drive Auto Receivables Trust, Series 2018-1, Class B, 2.630%, 7/15/2022		367,791

See accompanying notes to financial statements.

37 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount			Description	Value (†)
			ABS Car Loan — continued
$	180,000		Santander Drive Auto Receivables Trust, Series 2018-2, Class B, 3.030%, 9/15/2022	$	179,220
	541,960		Westlake Automobile Receivables Trust, Series 2016-3A, Class B, 2.070%, 12/15/2021, 144A(a)		541,422
	295,000		Westlake Automobile Receivables Trust, Series 2017-1A, Class B, 2.300%, 10/17/2022, 144A		294,387
	135,000		Westlake Automobile Receivables Trust, Series 2018-1A, Class B, 2.670%, 5/17/2021, 144A		134,271
	1,330,000		World Omni Auto Receivables Trust, Series 2017-A, Class A3, 1.930%, 9/15/2022(a)		1,314,725
	110,000		World Omni Auto Receivables Trust, Series 2017-B, Class A3, 1.950%, 2/15/2023		107,806

					18,323,395

			ABS Credit Card — 1.9%
	415,000		Barclays Dryrock Issuance Trust, Series 2014-3, Class A, 2.410%, 7/15/2022(a)		413,294
	805,000	��	Capital One Multi-Asset Execution Trust, Series 2017-A4, Class A4, 1.990%, 7/17/2023(a)		788,493
	260,000		Citibank Credit Card Issuance Trust, Series 2014-A1, Class A1, 2.880%, 1/23/2023		258,647
	470,000		Synchrony Credit Card Master Note Trust, Series 2016-3, Class A, 1.580%, 9/15/2022(a)		464,101
	555,000		World Financial Network Credit Card Master Trust, Series 2016-C, Class A, 1.720%, 8/15/2023(a)		547,885
	730,000		World Financial Network Credit Card Master Trust, Series 2017-A, Class A, 2.120%, 3/15/2024(a)		717,413

					3,189,833

			ABS Home Equity — 0.9%
	325,973		Bayview Opportunity Master Fund IVa Trust, Series 2016-SPL1, Class A, 4.000%, 4/28/2055, 144A		327,019
	214,585		Colony American Finance Ltd., Series 2015-1, Class A, 2.896%, 10/15/2047, 144A		213,268
	187,899		CoreVest American Finance Trust, Series 2017-1, Class A, 2.968%, 10/15/2049, 144A		183,318
	15,606		Countrywide Alternative Loan Trust, Series 2006-J5, Class 4A1, 5.061%, 7/25/2021(b)(c)(d)		14,830
	9,012		Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 5.115%, 2/25/2035(c)		9,056
	438,901		Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2015-DNA1, Class M2, 1-month LIBOR + 1.850%, 4.066%, 10/25/2027(a)(e)		446,724
	130,374		Mill City Mortgage Trust, Series 2016-1, Class A1, 2.500%, 4/25/2057, 144A(c)		127,304
	115,632		Towd Point Mortgage Trust, Series 2015-2, Class 1A12, 2.750%, 11/25/2060, 144A(c)		113,911
	49,588		Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR10, Class 2A4, 4.213%, 5/01/2035(c)		51,016

					1,486,446

			ABS Other — 3.4%
	332,078		Diamond Resorts Owner Trust, Series 2018-1, Class A, 3.700%, 1/21/2031, 144A		330,393
	270,000		John Deere Owner Trust, Series 2017-B, Class A3, 1.820%, 10/15/2021		266,300

See accompanying notes to financial statements.

| 38

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		ABS Other — continued
$	520,000	Mariner Finance Issuance Trust, Series 2017-BA, Class A, 2.920%, 12/20/2029, 144A	$	512,315
	356,122	Merlin Aviation Holdings DAC, Series 2016-1, Class A, 4.500%, 12/15/2032, 144A(c)		358,687
	139,044	OneMain Financial Issuance Trust, Series 2015-1A, Class A, 3.190%, 3/18/2026, 144A		139,219
	350,000	OneMain Financial Issuance Trust, Series 2016-1A, Class A, 3.660%, 2/20/2029, 144A		351,071
	555,000	OneMain Financial Issuance Trust, Series 2018-1A, Class A, 3.300%, 3/14/2029, 144A(a)		550,751
	320,083	S-Jets Ltd., Series 2017-1, Class A, 3.967%, 8/15/2042, 144A		318,092
	570,000	SCF Equipment Trust LLC, Series 2018-1A, Class A2, 3.630%, 10/20/2024, 144A(a)		569,042
	100,069	Sierra Receivables Funding Co. LLC, Series 2017-1A, Class A, 2.910%, 3/20/2034, 144A		98,777
	255,000	SoFi Consumer Loan Program Trust, Series 2018-1A, Class A2, 3.140%, 2/25/2027, 144A		252,736
	730,000	SoFi Consumer Loan Program Trust, Series 2018-2, Class A2, 3.350%, 4/26/2027, 144A		728,575
	148,958	TAL Advantage V LLC, Series 2014-1A, Class A, 3.510%, 2/22/2039, 144A		147,013
	67,222	TAL Advantage V LLC, Series 2014-2A, Class A2, 3.330%, 5/20/2039, 144A		66,777
	154,167	TAL Advantage V LLC, Series 2014-3A, Class A, 3.270%, 11/21/2039, 144A		150,765
	795,000	Verizon Owner Trust, Series 2017-1A, Class A, 2.060%, 9/20/2021, 144A(a)		787,784

				5,628,297

		ABS Student Loan — 0.8%
	135,347	Earnest Student Loan Program LLC, Series 2017-A, Class A2, 2.650%, 1/25/2041, 144A		132,463
	375,000	Massachusetts Educational Financing Authority, Series 2018-A, Class A, 3.850%, 5/25/2033		371,696
	213,079	North Carolina State Education Assistance Authority, Series 2011-2, Class A2, 3-month LIBOR + 0.800%, 3.135%, 7/25/2025(e)		213,648
	58,964	SoFi Professional Loan Program LLC, Series 2015-A, Class A2, 2.420%, 3/25/2030, 144A		58,111
	268,342	SoFi Professional Loan Program LLC, Series 2016-B, Class A2B, 2.740%, 10/25/2032, 144A		266,026
	180,000	SoFi Professional Loan Program LLC, Series 2017-E, Class A2B, 2.720%, 11/26/2040, 144A		173,803
	163,988	South Carolina Student Loan Corp., Series 2010-1, Class A2, 3-month LIBOR + 1.000%, 3.335%, 7/25/2025(e)		164,688

				1,380,435

		ABS Whole Business — 0.4%
	605,000	Planet Fitness Master Issuer LLC, Series 2018-1A, Class A2II, 4.666%, 9/05/2048, 144A		598,841

		Aerospace & Defense — 0.6%
	460,000	General Dynamics Corp., 3.000%, 5/11/2021		457,540
	450,000	Rolls-Royce PLC, 2.375%, 10/14/2020, 144A		439,686
	105,000	Spirit AeroSystems, Inc., 4.600%, 6/15/2028		104,127

				1,001,353

See accompanying notes to financial statements.

39 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		Agency Commercial Mortgage-Backed Securities — 1.7%
$	648,018	FHLMC Multifamily Structured Pass Through Certificates, Series K013, Class A2, 3.974%, 1/25/2021(a)(c)	$	658,883
	509,476	FHLMC Multifamily Structured Pass Through Certificates, Series K029, Class A2, 3.320%, 2/25/2023(a)(c)		511,816
	701,647	FHLMC Multifamily Structured Pass Through Certificates, Series K042, Class A2, 2.670%, 12/25/2024(a)		677,081
	970,707	FHLMC Multifamily Structured Pass Through Certificates, Series K711, Class A2, 1.730%, 7/25/2019(a)		963,307
	87,208	FHLMC Multifamily Structured Pass Through Certificates, Series KP03, Class A2, 1.780%, 7/25/2019		86,560

				2,897,647

		Airlines — 0.2%
	46,170	Delta Air Lines Pass Through Trust, Series 2009-1, Class A, 7.750%, 6/17/2021		48,150
	360,000	Southwest Airlines Co., 3.450%, 11/16/2027		340,237

				388,387

		Automotive — 5.1%
	425,000	American Honda Finance Corp., MTN, 2.000%, 2/14/2020		419,377
	45,000	Aptiv PLC, 3.150%, 11/19/2020		44,592
	290,000	BMW U.S. Capital LLC, 1.850%, 9/15/2021, 144A		276,948
	890,000	Daimler Finance North America LLC, 3.350%, 2/22/2023, 144A		875,495
	1,560,000	Ford Motor Credit Co. LLC, 2.979%, 8/03/2022		1,479,514
	860,000	General Motors Co., 5.000%, 10/01/2028		849,313
	595,000	General Motors Financial Co., Inc., 4.150%, 6/19/2023		592,621
	670,000	Harley-Davidson Financial Services, Inc., 3.350%, 2/15/2023, 144A		650,443
	730,000	Hyundai Capital America, 2.750%, 9/18/2020, 144A		715,743
	175,000	Hyundai Capital America, 3.450%, 3/12/2021, 144A		173,026
	855,000	Nissan Motor Acceptance Corp., 2.150%, 7/13/2020, 144A		836,239
	885,000	Nissan Motor Acceptance Corp., 3.450%, 3/15/2023, 144A		870,652
	150,000	PACCAR Financial Corp., MTN, 1.200%, 8/12/2019		147,824
	660,000	Toyota Motor Credit Corp., MTN, 2.150%, 9/08/2022		629,425

				8,561,212

		Banking — 22.3%
	530,000	ABN AMRO Bank NV, 1.800%, 9/20/2019, 144A		524,133
	315,000	American Express Co., 2.200%, 10/30/2020		308,354
	495,000	American Express Co., 3.700%, 8/03/2023		492,500
	915,000	ANZ New Zealand (Int’l) Ltd., 2.200%, 7/17/2020, 144A		896,601
	605,000	Bank of Ireland Group PLC, 4.500%, 11/25/2023, 144A		603,976
	1,080,000	Bank of New York Mellon Corp. (The), (fixed rate to 5/16/2022, variable rate thereafter), MTN, 2.661%, 5/16/2023		1,045,175
	740,000	Bank of Nova Scotia, 2.150%, 7/14/2020		727,626
	450,000	Banque Federative du Credit Mutuel S.A., 2.200%, 7/20/2020, 144A		441,083
	460,000	Banque Federative du Credit Mutuel S.A., 2.700%, 7/20/2022, 144A		442,731
	605,000	Banque Federative du Credit Mutuel S.A., 3.750%, 7/20/2023, 144A		601,397
	880,000	Barclays PLC, (fixed rate to 5/16/2023, variable rate thereafter), 4.338%, 5/16/2024		869,344
	625,000	BB&T Corp., MTN, 2.150%, 2/01/2021		610,010

See accompanying notes to financial statements.

| 40

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		Banking — continued
$	305,000	BB&T Corp., MTN, 3.700%, 6/05/2025	$	303,925
	270,000	BNP Paribas S.A., 3.375%, 1/09/2025, 144A		255,597
	350,000	BNP Paribas S.A., 3.500%, 3/01/2023, 144A		341,386
	490,000	BNZ International Funding Ltd., 2.400%, 2/21/2020, 144A		484,142
	720,000	Canadian Imperial Bank of Commerce, 3.500%, 9/13/2023		715,510
	655,000	Capital One Financial Corp., 3.300%, 10/30/2024		623,564
	215,000	Citigroup, Inc., 2.900%, 12/08/2021		210,542
	750,000	Citigroup, Inc., (fixed rate to 1/24/2022, variable rate thereafter), 3.142%, 1/24/2023		735,568
	310,000	Citizens Bank NA, 2.250%, 3/02/2020		305,829
	430,000	Citizens Bank NA, MTN, 2.500%, 3/14/2019		429,634
	250,000	Comerica Bank, 2.500%, 6/02/2020		246,570
	565,000	Comerica, Inc., 3.700%, 7/31/2023		562,242
	410,000	Cooperatieve Rabobank U.A. (NY), 2.750%, 1/10/2023		394,092
	675,000	Credit Agricole S.A., 3.750%, 4/24/2023, 144A		662,421
	730,000	Danske Bank AS, 3.875%, 9/12/2023, 144A		714,987
	290,000	Deutsche Bank AG, 4.100%, 1/13/2026		274,742
	480,000	Deutsche Bank AG (NY), 3.150%, 1/22/2021		469,058
	100,000	Deutshe Bank AG, 3.300%, 11/16/2022		95,065
	605,000	Discover Bank, 4.650%, 9/13/2028		605,021
	780,000	Fifth Third Bank, 1.625%, 9/27/2019		770,427
	395,000	Fifth Third Bank, 3.950%, 7/28/2025		394,524
	830,000	Goldman Sachs Group, Inc. (The), (fixed rate to 10/31/2021, variable rate thereafter), 2.876%, 10/31/2022		809,406
	305,000	HSBC Holdings PLC, 3-month LIBOR + 1.000%, 3.322%, 5/18/2024(e)		304,459
	860,000	HSBC Holdings PLC, (fixed rate to 9/12/2025, variable rate thereafter), 4.292%, 9/12/2026		851,550
	185,000	HSBC USA, Inc., 2.375%, 11/13/2019		183,775
	335,000	ING Groep NV, 4.550%, 10/02/2028		333,413
	850,000	JPMorgan Chase & Co., (fixed rate to 6/18/2021, variable rate thereafter), 3.514%, 6/18/2022		850,883
	585,000	JPMorgan Chase Bank NA, 1.650%, 9/23/2019		578,401
	555,000	Key Bank NA, 1.600%, 8/22/2019		549,042
	150,000	KeyCorp, MTN, 4.100%, 4/30/2028		149,186
	495,000	Lloyds Banking Group PLC, 4.050%, 8/16/2023		491,739
	855,000	Mitsubishi UFJ Financial Group, Inc., 3.761%, 7/26/2023		850,601
	280,000	Mitsubishi UFJ Financial Group, Inc., 3.961%, 3/02/2028		275,489
	430,000	Mizuho Financial Group, Inc., (fixed rate to 9/11/2028, variable rate thereafter), 4.254%, 9/11/2029		428,484
	855,000	Morgan Stanley, Series 3NC2, 3-month LIBOR + 0.800%, 3.119%, 2/14/2020(e)		857,017
	885,000	National Bank of Canada, 2.200%, 11/02/2020		864,176
	620,000	Nationwide Building Society, (fixed rate to 3/08/2023, variable rate thereafter), 3.766%, 3/08/2024, 144A		604,929
	620,000	Nationwide Building Society, (fixed rate to 8/01/2023, variable rate thereafter), 4.363%, 8/01/2024, 144A		616,756
	540,000	Nordea Bank AB, 1.625%, 9/30/2019, 144A		532,721
	845,000	Nordea Bank AB, 2.125%, 5/29/2020, 144A		829,621

See accompanying notes to financial statements.

41 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		Banking — continued
$	315,000	Northern Trust Corp., (fixed rate to 5/08/2027, variable rate thereafter), 3.375%, 5/08/2032	$	293,615
	400,000	PNC Bank NA, 4.050%, 7/26/2028		400,314
	530,000	Royal Bank of Canada, 2.150%, 10/26/2020		519,394
	605,000	Royal Bank of Scotland Group PLC, (fixed rate to 1/27/2029, variable rate thereafter), 5.076%, 1/27/2030		603,932
	425,000	Santander Holdings USA, Inc., 3.700%, 3/28/2022		419,774
	350,000	Santander UK PLC, 2.125%, 11/03/2020		340,533
	505,000	Santander UK PLC, 2.500%, 1/05/2021		494,213
	305,000	State Street Corp., (fixed rate to 5/15/2022, variable rate thereafter), 2.653%, 5/15/2023		295,339
	235,000	Sumitomo Mitsui Financial Group, Inc., 2.784%, 7/12/2022		227,485
	365,000	SunTrust Banks, Inc., 4.000%, 5/01/2025		365,911
	890,000	Synchrony Bank, 3.650%, 5/24/2021		882,607
	150,000	Synchrony Financial, 3.700%, 8/04/2026		135,481
	90,000	Synchrony Financial, 3.950%, 12/01/2027		81,531
	75,000	Synchrony Financial, 4.250%, 8/15/2024		72,460
	855,000	Toronto Dominion Bank (The), Series MTN, 3.250%, 6/11/2021		854,723
	840,000	U.S. Bank NA, 2.000%, 1/24/2020		829,561
	920,000	UBS AG, 2.200%, 6/08/2020, 144A		903,311
	455,000	UniCredit SpA, 3.750%, 4/12/2022, 144A		436,398
	855,000	Wells Fargo & Co., MTN, 2.625%, 7/22/2022		825,803
	195,000	Westpac Banking Corp., 2.800%, 1/11/2022		190,612
	25,000	Westpac Banking Corp., 3.650%, 5/15/2023		25,020

				37,317,441

		Brokerage — 0.2%
	335,000	Cboe Global Markets, Inc., 1.950%, 6/28/2019		332,940

		Building Materials — 0.8%
	107,000	Fortune Brands Home & Security, Inc., 3.000%, 6/15/2020		106,086
	595,000	Fortune Brands Home & Security, Inc., 4.000%, 9/21/2023		596,876
	600,000	Martin Marietta Materials, Inc., 3-month LIBOR + 0.650%, 2.960%, 5/22/2020(e)		602,004
	40,000	Masco Corp., 3.500%, 4/01/2021		39,979
	4,000	Masco Corp., 7.125%, 3/15/2020		4,201

				1,349,146

		Cable Satellite — 0.4%
	300,000	Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.908%, 7/23/2025		304,628
	320,000	Cox Communications, Inc., 3.150%, 8/15/2024, 144A		302,830

				607,458

		Chemicals — 0.3%
	9,000	Eastman Chemical Co., 4.500%, 1/15/2021		9,167
	385,000	EI du Pont de Nemours & Co., 2.200%, 5/01/2020		379,946
	45,000	Methanex Corp., 3.250%, 12/15/2019		44,824

				433,937

See accompanying notes to financial statements.

| 42

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		Collateralized Mortgage Obligations — 1.5%
$	190,073	Government National Mortgage Association, Series 2014-H14, Class FA, 1-month LIBOR + 0.500%, 2.600%, 7/20/2064(e)	$	190,846
	132,410	Government National Mortgage Association, Series 2014-H15, Class FA, 1-month LIBOR + 0.500%, 2.580%, 7/20/2064(e)		133,046
	158,587	Government National Mortgage Association, Series 2015-H09, Class HA, 1.750%, 3/20/2065		157,160
	443,563	Government National Mortgage Association, Series 2015-H10, Class JA, 2.250%, 4/20/2065(a)		422,073
	537,559	Government National Mortgage Association, Series 2016-H06, Class FC, 1-month LIBOR + 0.920%, 3.000%, 2/20/2066(a)(e)		548,202
	984,402	Government National Mortgage Association, Series 2016-H10, Class FJ, 1-month LIBOR + 0.600%, 2.680%, 4/20/2066(a)(e)		985,519

				2,436,846

		Construction Machinery — 0.6%
	215,000	Caterpillar Financial Services Corp., MTN, 2.550%, 11/29/2022		208,645
	300,000	Caterpillar Financial Services Corp., MTN, 3.150%, 9/07/2021		299,647
	350,000	John Deere Capital Corp., MTN, 1.950%, 6/22/2020		343,788
	174,000	John Deere Capital Corp., Series 0014, MTN, 2.450%, 9/11/2020		171,802

				1,023,882

		Consumer Cyclical Services — 1.1%
	225,000	Alibaba Group Holding Ltd., 2.500%, 11/28/2019		223,829
	375,000	Amazon.com, Inc., 5.200%, 12/03/2025		411,807
	470,000	Expedia Group, Inc., 3.800%, 2/15/2028		433,202
	735,000	Western Union Co. (The), 4.250%, 6/09/2023		732,864

				1,801,702

		Diversified Manufacturing — 1.6%
	455,000	Kennametal, Inc., 4.625%, 6/15/2028		445,704
	490,000	Roper Technologies, Inc., 3.650%, 9/15/2023		486,694
	265,000	Timken Co. (The), 4.500%, 12/15/2028		260,259
	860,000	United Technologies Corp., 3.650%, 8/16/2023		856,181
	175,000	Wabtec Corp., 3-month LIBOR + 1.050%, 3.382%, 9/15/2021(e)		175,357
	485,000	Wabtec Corp., 4.700%, 9/15/2028		477,315

				2,701,510

		Electric — 5.4%
	510,000	Alliant Energy Finance LLC, 4.250%, 6/15/2028, 144A		506,387
	160,000	American Electric Power Co., Inc., 3.200%, 11/13/2027		149,891
	120,000	Consolidated Edison Co. of New York, Inc., Series B, 2.900%, 12/01/2026		111,578
	1,035,000	Consolidated Edison, Inc., Series A, 2.000%, 3/15/2020		1,017,675
	905,000	Duke Energy Carolinas LLC, 3.050%, 3/15/2023		890,610
	480,000	Enel Finance International NV, 4.625%, 9/14/2025, 144A		469,775
	410,000	Entergy Texas, Inc., 3.450%, 12/01/2027		389,731
	451,000	Exelon Corp., 2.450%, 4/15/2021		438,302
	179,000	Exelon Generation Co. LLC, 2.950%, 1/15/2020		178,504
	116,000	Exelon Generation Co. LLC, 4.250%, 6/15/2022		117,727
	395,000	Fortis, Inc., 2.100%, 10/04/2021		377,348

See accompanying notes to financial statements.

43 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		Electric — continued
$	595,000	Interstate Power & Light Co., 4.100%, 9/26/2028	$	598,471
	188,000	National Rural Utilities Cooperative Finance Corp., (fixed rate to 4/30/2023, variable rate thereafter), 4.750%, 4/30/2043		189,319
	690,000	National Rural Utilities Cooperative Finance Corp., MTN, 1.500%, 11/01/2019		678,805
	195,000	Oklahoma Gas & Electric Co., 3.800%, 8/15/2028		191,737
	290,000	Pacific Gas & Electric Co., 3.500%, 6/15/2025		276,690
	905,000	PNM Resources, Inc., 3.250%, 3/09/2021		896,596
	530,000	PSEG Power LLC, 3.850%, 6/01/2023		528,031
	273,000	Southern Co. (The), 2.750%, 6/15/2020		270,338
	720,000	Southern Power Co., Series E, 2.500%, 12/15/2021		696,939

				8,974,454

		Finance Companies — 1.3%
	315,000	Air Lease Corp., 3.625%, 12/01/2027		289,403
	675,000	Air Lease Corp., 3.875%, 7/03/2023		668,907
	345,000	Aircastle Ltd., 4.400%, 9/25/2023		345,046
	665,000	Ares Capital Corp., 3.625%, 1/19/2022		650,201
	305,000	Aviation Capital Group LLC, 3.875%, 5/01/2023, 144A		301,795

				2,255,352

		Financial Other — 0.4%
	410,000	Mitsubishi UFJ Lease & Finance Co. Ltd., 2.652%, 9/19/2022, 144A		390,769
	370,000	ORIX Corp., 3.250%, 12/04/2024		352,257

				743,026

		Food & Beverage — 3.1%
	625,000	Bacardi Ltd., 4.700%, 5/15/2028, 144A		620,475
	245,000	Brown-Forman Corp., 3.500%, 4/15/2025		242,526
	855,000	Bunge Ltd. Finance Corp., 4.350%, 3/15/2024		846,489
	885,000	General Mills, Inc., 2.600%, 10/12/2022		848,519
	275,000	Kellogg Co., 4.300%, 5/15/2028		273,114
	855,000	Kraft Heinz Foods Co., 4.000%, 6/15/2023		857,436
	845,000	Molson Coors Brewing Co., 2.250%, 3/15/2020		832,658
	140,000	Smithfield Foods, Inc., 3.350%, 2/01/2022, 144A		135,340
	320,000	Sysco Corp., 3.550%, 3/15/2025		313,079
	210,000	Tyson Foods, Inc., 3.900%, 9/28/2023		210,826

				5,180,462

		Government Owned – No Guarantee — 1.7%
	865,000	Electricite de France S.A., 4.500%, 9/21/2028, 144A		852,083
	445,000	Petroleos Mexicanos, 6.375%, 2/04/2021		466,587
	155,000	Petroleos Mexicanos, 6.875%, 8/04/2026		163,510
	780,000	Sinopec Group Overseas Development 2016 Ltd., 1.750%, 9/29/2019, 144A		769,330
	320,000	Syngenta Finance N.V., 5.182%, 4/24/2028, 144A		306,149
	255,000	Temasek Financial I Ltd., 3.625%, 8/01/2028, 144A		253,645

				2,811,304

See accompanying notes to financial statements.

| 44

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		Health Insurance — 0.7%
$	860,000	Halfmoon Parent, Inc., 3.750%, 7/15/2023, 144A	$	857,369
	310,000	Humana, Inc., 2.500%, 12/15/2020		304,285

				1,161,654

		Healthcare — 1.5%
	750,000	Becton, Dickinson and Co., 2.133%, 6/06/2019		745,550
	640,000	Cardinal Health, Inc., 1.948%, 6/14/2019		636,405
	595,000	CVS Health Corp., 4.300%, 3/25/2028		590,335
	45,000	Express Scripts Holding Co., 3.000%, 7/15/2023		43,331
	65,000	Express Scripts Holding Co., 4.750%, 11/15/2021		67,088
	183,000	Life Technologies Corp., 6.000%, 3/01/2020		189,509
	175,000	McKesson Corp., 3.950%, 2/16/2028		168,981
	94,000	Quest Diagnostics, Inc., 4.750%, 1/30/2020		95,985

				2,537,184

		Hybrid ARMs — 0.1%
	47,392	FHLMC, 1-year CMT + 2.251%, 4.113%, 1/01/2035(e)		49,815
	122,648	FHLMC, 1-year CMT + 2.500%, 4.195%, 5/01/2036(e)		130,061

				179,876

		Independent Energy — 0.4%
	300,000	Apache Corp., 4.375%, 10/15/2028		294,231
	179,000	Encana Corp., 6.500%, 5/15/2019		182,877
	220,000	EQT Corp., 3.900%, 10/01/2027		206,143

				683,251

		Industrial Other — 0.3%
	490,000	Fluor Corp., 4.250%, 9/15/2028		479,853

		Integrated Energy — 0.1%
	220,000	BP Capital Markets America, Inc., 3.937%, 9/21/2028		221,397

		Life Insurance — 2.1%
	85,000	AIG Global Funding, 2.150%, 7/02/2020, 144A		83,356
	380,000	Athene Global Funding, 2.750%, 4/20/2020, 144A		375,248
	540,000	Athene Holding Ltd., 4.125%, 1/12/2028		504,521
	330,000	Brighthouse Financial, Inc., Series WI, 3.700%, 6/22/2027		292,954
	830,000	Jackson National Life Global Funding, 2.200%, 1/30/2020, 144A		819,983
	310,000	Jackson National Life Global Funding, 3.875%, 6/11/2025, 144A		308,020
	740,000	Reliance Standard Life Global Funding, 3.850%, 9/19/2023, 144A		737,865
	344,000	Reliance Standard Life Global Funding II, 2.150%, 10/15/2018, 144A		343,949
	63,000	Unum Group, 5.625%, 9/15/2020		65,575

				3,531,471

		Lodging — 0.1%
	245,000	Hyatt Hotels Corp., 4.375%, 9/15/2028		240,891

		Media Entertainment — 0.4%
	95,000	Activision Blizzard, Inc., 2.300%, 9/15/2021		92,208
	425,000	CBS Corp., 2.900%, 6/01/2023, 144A		404,266

See accompanying notes to financial statements.

45 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		Media Entertainment — continued
$	130,000	Interpublic Group of Cos., Inc. (The), 3.500%, 10/01/2020	$	130,012
	112,000	S&P Global, Inc, 3.300%, 8/14/2020		112,023

				738,509

		Midstream — 0.5%
	185,000	Buckeye Partners LP, 3.950%, 12/01/2026		170,568
	155,000	Enbridge, Inc., 3.500%, 6/10/2024		151,024
	60,000	Energy Transfer Partners LP, 4.900%, 2/01/2024		61,841
	255,000	Kinder Morgan Energy Partners LP, 4.150%, 2/01/2024		255,750
	85,000	Kinder Morgan, Inc., 4.300%, 3/01/2028		84,277
	160,000	Plains All American Pipeline LP/PAA Finance Corp., 3.850%, 10/15/2023		157,560

				881,020

		Mortgage Related — 3.8%
	3,470	FHLMC, 3.000%, 10/01/2026		3,445
	345	FHLMC, 6.500%, 1/01/2024		381
	66	FHLMC, 8.000%, 7/01/2025		71
	114	FNMA, 6.000%, 9/01/2021		115
	203,438	GNMA, 4.254%, 2/20/2063(c)		206,511
	378,726	GNMA, 4.297%, 2/20/2063(a)(c)		383,263
	236,775	GNMA, 4.411%, 10/20/2066(c)		247,118
	60,292	GNMA, 4.412%, 6/20/2066(c)		62,605
	144,629	GNMA, 4.415%, 10/20/2062(c)		146,467
	107,761	GNMA, 4.428%, 9/20/2066(c)		112,247
	133,536	GNMA, 4.453%, 5/20/2062(c)		134,800
	62,339	GNMA, 4.457%, 11/20/2066(c)		64,839
	65,712	GNMA, 4.463%, 8/20/2066(c)		68,455
	188,485	GNMA, 4.501%, 4/20/2063(c)		191,275
	346,760	GNMA, 4.512%, 4/20/2063(a)(c)		352,330
	115,395	GNMA, 4.516%, 11/20/2066(c)		120,669
	142,101	GNMA, 4.517%, 5/20/2062(c)		143,708
	1,212,731	GNMA, 4.523%, with various maturities from 2066 to 2067(a)(c)(f)		1,273,853
	189,288	GNMA, 4.533%, 9/20/2066(c)		198,499
	93,938	GNMA, 4.547%, 10/20/2066(c)		98,695
	233,189	GNMA, 4.558%, 11/20/2064(c)		236,135
	471,098	GNMA, 4.559%, 7/20/2067(a)(c)		496,685
	166,335	GNMA, 4.564%, 3/20/2063(c)		168,989
	189,810	GNMA, 4.584%, 2/20/2063(c)		192,537
	865,709	GNMA, 4.593%, 1/20/2067(a)(c)		913,885
	89,625	GNMA, 4.637%, 7/20/2062(c)		90,535
	29,071	GNMA, 4.685%, 8/20/2061(c)		29,134
	449,261	GNMA, 4.688%, 5/20/2064(a)(c)		469,929
	1,114	GNMA, 6.500%, 12/15/2023		1,223
	109	GNMA, 8.500%, 9/15/2022		109
	93	GNMA, 9.500%, 1/15/2019		93

				6,408,600

See accompanying notes to financial statements.

| 46

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		Natural Gas — 0.6%
$	965,000	Sempra Energy, 1.625%, 10/07/2019	$	951,025

		Non-Agency Commercial Mortgage-Backed Securities — 7.4%
	565,000	Barclays Commercial Mortgage Securities Trust, Series 2017-C1, Class A2, 3.189%, 2/15/2050(a)		560,617
	491,600	CFCRE Commercial Mortgage Trust, Series 2016-C3, Class A3, 3.865%, 1/10/2048(a)		492,481
	361,996	CFCRE Commercial Mortgage Trust, Series 2016-C4, Class A4, 3.283%, 5/10/2058		350,135
	992,138	Citigroup Commercial Mortgage Trust, Series 2016-GC37, Class A4, 3.314%, 4/10/2049(a)		964,199
	263,676	Commercial Mortgage Pass Through Certificates, Series 2013-CR8, Class A5, 3.612%, 6/10/2046(c)		265,275
	535,000	Commercial Mortgage Pass Through Certificates, Series 2012-LTRT, Class A2, 3.400%, 10/05/2030, 144A(a)		514,544
	71,633	Commercial Mortgage Pass Through Certificates, Series 2014-CR14, Class A2, 3.147%, 2/10/2047		71,633
	178,799	Commercial Mortgage Pass Through Certificates, Series 2014-CR15, Class A2, 2.928%, 2/10/2047		178,776
	205,578	Commercial Mortgage Pass Through Certificates, Series 2014-CR16, Class ASB, 3.653%, 4/10/2047		206,835
	478,193	Commercial Mortgage Pass Through Certificates, Series 2014-LC17, Class A3, 3.723%, 10/10/2047(a)		481,216
	730,000	Commercial Mortgage Pass Through Certificates, Series 2014-TWC, Class A, 1-month LIBOR + 0.850%, 2.983%, 2/13/2032, 144A(a)(e)		730,684
	280,000	Commercial Mortgage Pass Through Certificates, Series 2014-UBS3, Class A4, 3.819%, 6/10/2047		283,098
	520,299	Commercial Mortgage Pass Through Certificates, Series 2016-DC2, Class A5, 3.765%, 2/10/2049(a)		520,221
	280,000	Commercial Mortgage Trust, Series 2015-DC1, Class A5, 3.350%, 2/10/2048		274,682
	640,000	Credit Suisse Mortgage Capital Certificates, Series 2014-USA, Class A2, 3.953%, 9/15/2037, 144A(a)		637,734
	84,913	CSAIL Commercial Mortgage Trust, Series 2015-C4, Class ASB, 3.617%, 11/15/2048		85,039
	340,000	GS Mortgage Securities Corp. Trust, Series 2013-PEMB, Class A, 3.668%, 3/05/2033, 144A(c)		326,425
	330,000	GS Mortgage Securities Trust, Series 2014-GC18, Class A4, 4.074%, 1/10/2047		338,358
	22,302	GS Mortgage Securities Trust, Series 2014-GC20, Class A3, 3.680%, 4/10/2047		22,341
	180,000	Hudsons Bay Simon JV Trust, Series 2015-HB10, Class A10, 4.155%, 8/05/2034, 144A		176,297
	355,000	Hudsons Bay Simon JV Trust, Series 2015-HB7, Class A7, 3.914%, 8/05/2034, 144A		348,770
	120,665	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2014-C19, Class ASB, 3.584%, 4/15/2047		121,461
	217,607	JPMorgan Chase Commercial Mortgage Securities Trust, Series 2017-JP5, Class A1, 2.086%, 3/15/2050		213,536
	240,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C10, Class A4, 4.219%, 7/15/2046(c)		245,802

See accompanying notes to financial statements.

47 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		Non-Agency Commercial Mortgage-Backed Securities — continued
$	263,676	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A3, 3.669%, 2/15/2047	$	265,167
	129,604	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C22, Class A4, 3.306%, 4/15/2048		126,745
	200,987	Starwood Retail Property Trust, Inc., Series 2014-STAR, Class A, 1-month LIBOR + 1.220%, 3.378%, 11/15/2027, 144A(e)		201,061
	505,000	UBS-Barclays Commercial Mortgage Trust, Series 2012-TFT, Class A, 2.892%, 6/05/2030, 144A(a)		495,045
	565,000	UBS-Barclays Commercial Mortgage Trust, Series 2013-C6, Class A4, 3.244%, 4/10/2046(a)		559,381
	201,109	Wells Fargo Commercial Mortgage Trust, Series 2016-C33, Class A4, 3.426%, 3/15/2059		196,472
	1,295,000	Wells Fargo Commercial Mortgage Trust, Series 2017-RC1, Class A2, 3.118%, 1/15/2060(a)		1,279,971
	18,497	WFCG Commercial Mortgage Trust, Series 2015-BXRP, Class A, 1-month LIBOR + 1.122%, 3.280%, 11/15/2029, 144A(e)		18,549
	178,764	WFRBS Commercial Mortgage Trust, Series 2014-C19, Class A3, 3.660%, 3/15/2047		179,795
	325,000	WFRBS Commercial Mortgage Trust, Series 2014-C19, Class A5, 4.101%, 3/15/2047		333,084
	348,589	WFRBS Commercial Mortgage Trust, Series 2014-C20, Class ASB, 3.638%, 5/15/2047(a)		350,752

				12,416,181

		Oil Field Services — 0.4%
	770,000	Baker Hughes a GE Co. LLC / Baker Hughes Co-Obligor, Inc., 2.773%, 12/15/2022		746,024

		Paper — 0.4%
	625,000	WestRock Co., 3.750%, 3/15/2025, 144A		614,209

		Pharmaceuticals — 1.5%
	600,000	AbbVie, Inc., 4.250%, 11/14/2028		593,216
	22,000	Amgen, Inc., 2.200%, 5/22/2019		21,920
	235,000	Bayer U.S. Finance II LLC, 3.375%, 7/15/2024, 144A		223,750
	860,000	Pfizer, Inc., 3.200%, 9/15/2023		852,729
	775,000	Shire Acquisitions Investments Ireland DAC, 1.900%, 9/23/2019		766,714

				2,458,329

		Property & Casualty Insurance — 0.3%
	435,000	American Financial Group, Inc., 3.500%, 8/15/2026		404,937
	180,000	Assurant, Inc., 4.200%, 9/27/2023		178,997

				583,934

		Railroads — 0.3%
	206,000	CSX Corp., 3.700%, 10/30/2020		208,040
	215,000	Union Pacific Corp., 3.646%, 2/15/2024		214,378

				422,418

See accompanying notes to financial statements.

| 48

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		REITs – Health Care — 0.4%
$	31,000	Healthcare Realty Trust, Inc., 3.750%, 4/15/2023	$	30,321
	405,000	Omega Healthcare Investors, Inc., 4.500%, 1/15/2025		397,192
	225,000	Omega Healthcare Investors, Inc., 4.500%, 4/01/2027		215,349

				642,862

		REITs – Shopping Centers — 0.2%
	355,000	Brixmor Operating Partnership LP, 3.650%, 6/15/2024		341,225

		REITs – Single Tenant — 0.2%
	290,000	Select Income REIT, 4.250%, 5/15/2024		277,428

		Restaurants — 1.0%
	1,030,000	McDonald’s Corp., MTN, 2.625%, 1/15/2022		1,002,120
	695,000	McDonald’s Corp., MTN, 3.350%, 4/01/2023		689,094

				1,691,214

		Retailers — 1.3%
	465,000	AutoNation, Inc., 3.500%, 11/15/2024		440,589
	415,000	Best Buy Co., Inc., 4.450%, 10/01/2028		413,199
	470,000	Ralph Lauren Corp., 3.750%, 9/15/2025		464,793
	850,000	Seven & i Holdings Co. Ltd., 3.350%, 9/17/2021, 144A		850,655

				2,169,236

		Technology — 2.6%
	460,000	Fiserv, Inc., 3.800%, 10/01/2023		459,886
	450,000	Genpact Luxembourg S.a.r.l., 3.700%, 4/01/2022		439,403
	610,000	Hewlett Packard Enterprise Co., 2.100%, 10/04/2019, 144A		604,056
	120,000	Hewlett Packard Enterprise Co., 4.900%, 10/15/2025		123,353
	89,000	Jabil, Inc., 5.625%, 12/15/2020		92,382
	175,000	Marvell Technology Group Ltd., 4.200%, 6/22/2023		174,142
	140,000	Microchip Technology, Inc., 3.922%, 6/01/2021, 144A		139,180
	885,000	NetApp, Inc., 2.000%, 9/27/2019		877,109
	215,000	Pitney Bowes, Inc., 4.375%, 5/15/2022		199,144
	425,000	Pitney Bowes, Inc., 4.700%, 4/01/2023		388,752
	205,000	Seagate Hdd Cayman, 4.875%, 3/01/2024		202,054
	90,000	Trimble, Inc., 4.150%, 6/15/2023		90,053
	630,000	Xerox Corp., 3.625%, 3/15/2023		600,819

				4,390,333

		Transportation Services — 1.0%
	140,000	CH Robinson Worldwide, Inc., 4.200%, 4/15/2028		137,867
	570,000	Penske Truck Leasing Co. LP/PTL Finance Corp., 4.125%, 8/01/2023, 144A		569,061
	510,000	Ryder System, Inc., MTN, 3.750%, 6/09/2023		508,835
	430,000	TTX Co., 2.600%, 6/15/2020, 144A		423,663

				1,639,426

		Treasuries — 2.2%
	1,670,000	U.S. Treasury Note, 1.125%, 1/15/2019		1,664,550
	2,000,000	U.S. Treasury Note, 2.875%, 5/15/2028		1,969,844

				3,634,394

See accompanying notes to financial statements.

49 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)


Principal Amount		Description	Value (†)
		Wireless — 0.5%
$	200,000	SK Telecom Co. Ltd., 3.750%, 4/16/2023, 144A	$	198,058
	140,000	Vodafone Group PLC, 4.125%, 5/30/2025		138,917
	435,000	Vodafone Group PLC, 4.375%, 5/30/2028		428,574

				765,549

		Wirelines — 1.1%
	660,000	AT&T, Inc., 3-month LIBOR + 1.180%, 3.514%, 6/12/2024(e)		662,970
	400,000	Deutsche Telekom International Finance BV, 1.500%, 9/19/2019, 144A		393,608
	870,000	Verizon Communications, Inc., 3.376%, 2/15/2025		844,489

				1,901,067

		Total Bonds and Notes (Identified Cost $167,034,249)		164,133,866


	Short-Term Investments — 1.6%
	2,700,638	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/28/2018 at 1.300% to be repurchased at $2,700,931 on 10/01/2018 collateralized by $2,740,000 Federal Home Loan Mortgage Corp., 3.750% due 3/27/2019 valued at $2,757,903 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $2,700,638)		2,700,638


		Total Investments — 99.7% (Identified Cost $169,734,887)		166,834,504
		Other assets less liabilities — 0.3%		436,470

		Net Assets — 100.0%	$	167,270,974


	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Security (or a portion thereof) has been designated to cover the Fund’s obligations under open derivative contracts.
	(b)	Level 3 security. Value has been determined using significant unobservable inputs. See Note 3 of Notes to Financial Statements.
	(c)	Variable rate security. The interest rate adjusts periodically based on; (i) changes in current interest rates and/or prepayments on underlying pools of assets, if applicable, (ii) reference to a base lending rate plus or minus a margin, and/or (iii) reference to a base lending rate adjusted by a multiplier and/or subject to certain floors or caps. Rate as of September 30, 2018 is disclosed.
	(d)	Fair valued by the Fund’s adviser. At September 30, 2018, the value of this security amounted to $14,830 or less than 0.1% of net assets. See Note 2 of Notes to Financial Statements.
	(e)	Variable rate security. Rate as of September 30, 2018 is disclosed.
	(f)	The Fund’s investment in mortgage related securities of Federal Home Loan Mortgage Corporation 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.

See accompanying notes to financial statements.

| 50

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Intermediate Duration Bond Fund – (continued)



	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, 2018, the value of Rule 144A holdings amounted to $51,027,087 or 30.5% of net assets.
	ABS			Asset-Backed Securities
	ARMs			Adjustable Rate Mortgages
	CMT			Constant Maturity Treasury
	FHLMC			Federal Home Loan Mortgage Corp.
	FNMA			Federal National Mortgage Association
	GNMA			Government National Mortgage Association
	LIBOR			London Interbank Offered Rate
	MTN			Medium Term Note
	REITs			Real Estate Investment Trusts

At September 30, 2018, open long futures contracts were as follows:


Financial Futures	Expiration Date		Contracts	Notional Amount		Value		Unrealized Appreciation (Depreciation)
5 Year U.S. Treasury Note		12/31/2018	184	$	20,820,399	$	20,695,687	$	(124,712	)

Industry Summary at September 30, 2018


Banking	22.3	%
ABS Car Loan	11.0
Non-Agency Commercial Mortgage-Backed Securities	7.4
Electric	5.4
Automotive	5.1
Mortgage Related	3.8
ABS Other	3.4
Food & Beverage	3.1
Technology	2.6
Treasuries	2.2
Life Insurance	2.1
Other Investments, less than 2% each	29.7
Short-Term Investments	1.6

Total Investments	99.7
Other assets less liabilities (including futures contracts)	0.3

Net Assets	100.0	%

See accompanying notes to financial statements.

51 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Limited Term Government and Agency Fund


Principal Amount		Description	Value (†)
	Bonds and Notes — 94.4% of Net Assets
		ABS Car Loan — 1.4%
$	1,550,000	Avis Budget Rental Car Funding AESOP LLC, Series 2016-1A, Class A, 2.990%, 6/20/2022, 144A	$	1,529,848
	1,042,181	Credit Acceptance Auto Loan Trust, Series 2016-2A, Class A, 2.420%, 11/15/2023, 144A		1,041,135
	2,875,000	Credit Acceptance Auto Loan Trust, Series 2016-3A, Class A, 2.150%, 4/15/2024, 144A		2,862,168
	1,614,064	Flagship Credit Auto Trust, Series 2016-4, Class A2, 1.960%, 2/16/2021, 144A		1,611,278
	725,000	NextGear Floorplan Master Owner Trust, Series 2016-1A, Class A2, 2.740%, 4/15/2021, 144A		724,337
	1,495,000	NextGear Floorplan Master Owner Trust, Series 2017-1A, Class A2, 2.540%, 4/18/2022, 144A		1,479,451
	685,000	NextGear Floorplan Master Owner Trust, Series 2017-2A, Class A2, 2.560%, 10/17/2022, 144A		675,315

				9,923,532

		ABS Home Equity — 0.3%
	1,089,815	CoreVest American Finance Trust, Series 2017-1, Class A, 2.968%, 10/15/2049, 144A		1,063,246
	1,056,875	Towd Point Mortgage Trust, Series 2015-2, Class 1A12, 2.750%, 11/25/2060, 144A(a)		1,041,144

				2,104,390

		ABS Other — 0.3%
	1,250,177	Diamond Resorts Owner Trust, Series 2018-1, Class A, 3.700%, 1/21/2031, 144A		1,243,831
	825,000	Navistar Financial Dealer Note Master Owner Trust II, Series 2018-1, Class A, 1-month LIBOR + 0.630%, 2.798%, 9/25/2023, 144A(b)		825,647

				2,069,478

		ABS Student Loan — 0.0%
	157,733	SoFi Professional Loan Program LLC, Series 2016-D, Class A1, 1-month LIBOR + 0.950%, 3.166%, 1/25/2039, 144A(b)		158,610

		Agency Commercial Mortgage-Backed Securities — 16.4%
	2,691,243	Federal National Mortgage Association, Series 2015-M17, Class FA, 1-month LIBOR + 0.930%, 2.999%, 11/25/2022(b)		2,716,164
	980,253	Federal National Mortgage Association, Series 2016-M3, Class ASQ2, 2.263%, 2/25/2023		948,678
	13,445,000	FHLMC Multifamily Structured Pass Through Certificates, Series KJ20, Class A2, 3.799%, 12/25/2025		13,692,692
	6,000,000	FHLMC Multifamily Structured Pass Through Certificates, Series K006, Class A2, 4.251%, 1/25/2020		6,077,512
	4,274,389	FHLMC Multifamily Structured Pass Through Certificates, Series K014, Class A2, 3.871%, 4/25/2021		4,339,753
	4,000,000	FHLMC Multifamily Structured Pass Through Certificates, Series K015, Class A2, 3.230%, 7/25/2021		4,010,228
	6,625,000	FHLMC Multifamily Structured Pass Through Certificates, Series K017, Class A2, 2.873%, 12/25/2021		6,577,039

See accompanying notes to financial statements.

| 52

Portfolio of Investments – as of September 30, 2018

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


Principal Amount		Description	Value (†)
		Agency Commercial Mortgage-Backed Securities — continued
$	2,580,000	FHLMC Multifamily Structured Pass Through Certificates, Series K064, Class A2, 3.224%, 3/25/2027	$	2,525,245
	840,424	FHLMC Multifamily Structured Pass Through Certificates, Series K706, Class A2, 2.323%, 10/25/2018		839,015
	6,401,116	FHLMC Multifamily Structured Pass Through Certificates, Series K708, Class A2, 2.130%, 1/25/2019		6,385,178
	32,886,853	FHLMC Multifamily Structured Pass Through Certificates, Series K711, Class A2, 1.730%, 7/25/2019		32,636,160
	2,598,396	FHLMC Multifamily Structured Pass Through Certificates, Series K725, Class A1, 2.666%, 5/25/2023		2,557,424
	5,170,000	FHLMC Multifamily Structured Pass Through Certificates, Series K732, Class A2, 3.700%, 5/25/2025		5,268,084
	4,100,025	FHLMC Multifamily Structured Pass Through Certificates, Series KBAM, Class A, 1-month LIBOR + 0.700%, 2.814%, 9/25/2022(b)		4,113,537
	443,460	FHLMC Multifamily Structured Pass Through Certificates, Series KF06, Class A, 1-month LIBOR + 0.330%, 2.444%, 11/25/2021(b)		443,595
	3,859,531	FHLMC Multifamily Structured Pass Through Certificates, Series KF14, Class A, 1-month LIBOR + 0.650%, 2.764%, 1/25/2023(b)		3,869,381
	1,934,172	FHLMC Multifamily Structured Pass Through Certificates, Series KI01, Class A, 1-month LIBOR + 0.160%, 2.274%, 9/25/2022(b)		1,934,430
	3,807,253	FHLMC Multifamily Structured Pass Through Certificates, Series KI01, Class A, 1-month LIBOR + 0.200%, 2.314%, 2/25/2023(b)		3,807,252
	845,757	FHLMC Multifamily Structured Pass Through Certificates, Series KJ04, Class A1, 1.376%, 10/25/2020		842,046
	10,261,000	FHLMC Multifamily Structured Pass Through Certificates, Series KJ21, Class A2, 3.700%, 9/25/2026		10,343,052
	3,777,702	FHLMC Multifamily Structured Pass Through Certificates, Series KP03, Class A2, 1.780%, 7/25/2019		3,749,616
	173,393	Government National Mortgage Association, Series 2003-72, Class Z, 5.269%, 11/16/2045(a)		178,618
	153,282	Government National Mortgage Association, Series 2003-88, Class Z, 4.766%, 3/16/2046(a)		155,273

				118,009,972

		Collateralized Mortgage Obligations — 14.5%
	54,741	Federal Home Loan Mortgage Corp., REMIC, Series 1500, Class FD, 7-year Treasury - 0.200%, 2.580%, 5/15/2023(b)(c)(d)		53,126
	37,079	Federal Home Loan Mortgage Corp., REMIC, Series 1552, Class I, 10-year Treasury - 0.650%, 2.180%, 8/15/2023(b)(c)(d)		36,612
	152,501	Federal Home Loan Mortgage Corp., REMIC, Series 2131, Class ZB, 6.000%, 3/15/2029		158,137
	110,897	Federal Home Loan Mortgage Corp., REMIC, Series 2874, Class BC, 5.000%, 10/15/2019		111,239
	319,274	Federal Home Loan Mortgage Corp., REMIC, Series 2931, Class DE, 4.000%, 2/15/2020		320,760
	1,190,158	Federal Home Loan Mortgage Corp., REMIC, Series 2978, Class JG, 5.500%, 5/15/2035		1,280,907

See accompanying notes to financial statements.

53 |

Portfolio of Investments – as of September 30, 2018

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


Principal Amount		Description	Value (†)
		Collateralized Mortgage Obligations — continued
$	1,802,667	Federal Home Loan Mortgage Corp., REMIC, Series 3036, Class NE, 5.000%, 9/15/2035	$	1,897,334
	1,298,299	Federal Home Loan Mortgage Corp., REMIC, Series 3412, Class AY, 5.500%, 2/15/2038		1,399,240
	1,359,825	Federal Home Loan Mortgage Corp., REMIC, Series 3561, Class W, 2.789%, 6/15/2048(a)(e)		1,244,348
	1,544,238	Federal Home Loan Mortgage Corp., REMIC, Series 3620, Class AT, 4.184%, 12/15/2036(a)(e)		1,639,034
	732,179	Federal Home Loan Mortgage Corp., REMIC, Series 4212, Class FW, 1-month LIBOR + 2.100%, 4.258%, 6/15/2043(b)		693,188
	1,306,169	Federal National Mortgage Association, REMIC, Series 2003-48, Class GH, 5.500%, 6/25/2033		1,400,212
	29,494	Federal National Mortgage Association, REMIC, Series 1992-162, Class FB, 7-year Treasury - 0.050%, 2.880%, 9/25/2022(b)(c)(d)		29,199
	36,432	Federal National Mortgage Association, REMIC, Series 1994-42, Class FD, 10-year Treasury - 0.500%, 2.330%, 4/25/2024(b)(c)(d)		36,040
	9,375	Federal National Mortgage Association, REMIC, Series 2002-W10, Class A7, 4.361%, 8/25/2042(a)(c)(d)		9,459
	584,322	Federal National Mortgage Association, REMIC, Series 2005-100, Class BQ, 5.500%, 11/25/2025		609,284
	629,148	Federal National Mortgage Association, REMIC, Series 2007-73, Class A1, 1-month LIBOR + 0.060%, 2.276%, 7/25/2037(b)		618,242
	1,383,458	Federal National Mortgage Association, REMIC, Series 2008-86, Class LA, 3.445%, 8/25/2038(a)		1,374,886
	5,412,360	Federal National Mortgage Association, REMIC, Series 2013-67, Class NF, 1-month LIBOR + 1.000%, 3.216%, 7/25/2043(b)		5,286,047
	17,591	Federal National Mortgage Association, REMIC, Series G93-19, Class FD, 10-year Treasury - 0.650%, 2.320%, 4/25/2023(b)(c)(d)		17,411
	9,238	FHLMC Structured Pass Through Securities, Series T-60, Class 2A1, 4.005%, 3/25/2044(a)(c)(d)		9,471
	622,472	FHLMC Structured Pass Through Securities, Series T-62, Class 1A1, 12-month MTA + 1.200%, 3.045%, 10/25/2044(b)		619,694
	1,151,050	Government National Mortgage Association, Series 2010-H20, Class AF, 1-month LIBOR + 0.330%, 2.410%, 10/20/2060(b)		1,149,266
	1,084,884	Government National Mortgage Association, Series 2010-H24, Class FA, 1-month LIBOR + 0.350%, 2.430%, 10/20/2060(b)		1,083,744
	896,546	Government National Mortgage Association, Series 2011-H06, Class FA, 1-month LIBOR + 0.450%, 2.530%, 2/20/2061(b)		897,959
	2,903,317	Government National Mortgage Association, Series 2011-H23, Class HA, 3.000%, 12/20/2061		2,898,849
	1,255,017	Government National Mortgage Association, Series 2012-124, Class HT, 7.258%, 7/20/2032(a)		1,298,034
	408,021	Government National Mortgage Association, Series 2012-H15, Class FA, 1-month LIBOR + 0.450%, 2.530%, 5/20/2062(b)		408,432
	1,014,420	Government National Mortgage Association, Series 2012-H18, Class NA, 1-month LIBOR + 0.520%, 2.600%, 8/20/2062(b)		1,018,116
	2,122,601	Government National Mortgage Association, Series 2012-H29, Class HF, 1-month LIBOR + 0.500%, 2.580%, 10/20/2062(b)		2,120,794

See accompanying notes to financial statements.

| 54

Portfolio of Investments – as of September 30, 2018

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


Principal Amount		Description	Value (†)
		Collateralized Mortgage Obligations — continued
$	1,354,995	Government National Mortgage Association, Series 2013-H02, Class GF, 1-month LIBOR + 0.500%, 2.580%, 12/20/2062(b)	$	1,355,557
	4,028,850	Government National Mortgage Association, Series 2013-H08, Class FA, 1-month LIBOR + 0.350%, 2.430%, 3/20/2063(b)		4,024,852
	2,762,373	Government National Mortgage Association, Series 2013-H10, Class FA, 1-month LIBOR + 0.400%, 2.480%, 3/20/2063(b)		2,762,861
	9,776,213	Government National Mortgage Association, Series 2013-H22, Class FT, 1-year CMT + 0.650%, 3.070%, 4/20/2063(b)		9,823,106
	5,722,005	Government National Mortgage Association, Series 2014-H14, Class FA, 1-month LIBOR + 0.500%, 2.600%, 7/20/2064(b)		5,745,263
	3,934,955	Government National Mortgage Association, Series 2014-H15, Class FA, 1-month LIBOR + 0.500%, 2.580%, 7/20/2064(b)		3,953,863
	3,443,438	Government National Mortgage Association, Series 2015-H04, Class FL, 1-month LIBOR + 0.470%, 2.550%, 2/20/2065(b)		3,453,396
	174,910	Government National Mortgage Association, Series 2015-H05, Class FA, 1-month LIBOR + 0.300%, 2.380%, 4/20/2061(b)		174,738
	4,236,713	Government National Mortgage Association, Series 2015-H09, Class HA, 1.750%, 3/20/2065		4,198,583
	7,496,780	Government National Mortgage Association, Series 2015-H10, Class JA, 2.250%, 4/20/2065		7,133,562
	590,543	Government National Mortgage Association, Series 2015-H11, Class FA, 1-month LIBOR + 0.250%, 2.330%, 4/20/2065(b)		589,987
	5,230,210	Government National Mortgage Association, Series 2015-H12, Class FL, 1-month LIBOR + 0.230%, 2.310%, 5/20/2065(b)		5,210,304
	2,726,157	Government National Mortgage Association, Series 2015-H19, Class FH, 1-month LIBOR + 0.300%, 2.380%, 7/20/2065(b)		2,727,311
	524,413	Government National Mortgage Association, Series 2015-H29, Class FA, 1-month LIBOR + 0.700%, 2.780%, 10/20/2065(b)		525,265
	282,335	Government National Mortgage Association, Series 2015-H30, Class FA, 1-month LIBOR + 0.680%, 2.760%, 8/20/2061(b)		282,744
	5,889,434	Government National Mortgage Association, Series 2016-H06, Class FC, 1-month LIBOR + 0.920%, 3.000%, 2/20/2066(b)		6,006,044
	3,670,402	Government National Mortgage Association, Series 2016-H10, Class FJ, 1-month LIBOR + 0.600%, 2.680%, 4/20/2066(b)		3,674,569
	5,806,427	Government National Mortgage Association, Series 2016-H19, Class FJ, 1-month LIBOR + 0.400%, 2.480%, 9/20/2063(b)		5,805,046
	5,966,716	Government National Mortgage Association, Series 2017-H24, Class FJ, 1-month LIBOR + 0.250%, 2.330%, 10/20/2067(b)		5,957,248
	234,266	NCUA Guaranteed Notes, Series 2010-A1, Class A, 1-month LIBOR + 0.350%, 2.483%, 12/07/2020(b)		234,543
	460,921	NCUA Guaranteed Notes, Series 2010-R1, Class 1A, 1-month LIBOR + 0.450%, 2.530%, 10/07/2020(b)		462,346
	977,075	NCUA Guaranteed Notes, Series 2010-R3, Class 1A, 1-month LIBOR + 0.560%, 2.681%, 12/08/2020(b)		979,608
	64,838	NCUA Guaranteed Notes, Series 2010-R3, Class 2A, 1-month LIBOR + 0.560%, 2.681%, 12/08/2020(b)		65,158

				104,865,018

See accompanying notes to financial statements.

55 |

Portfolio of Investments – as of September 30, 2018

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


Principal Amount		Description	Value (†)
		Hybrid ARMs — 9.0%
$	272,059	FHLMC, 12-month LIBOR + 1.718%, 3.549%, 4/01/2037(b)	$	283,134
	1,098,780	FHLMC, 1-year CMT + 2.286%, 3.560%, 2/01/2036(b)		1,159,290
	92,743	FHLMC, 12-month LIBOR + 1.725%, 3.698%, 12/01/2037(b)		95,839
	183,082	FHLMC, 1-year CMT + 2.214%, 3.791%, 9/01/2038(b)		191,296
	570,243	FHLMC, 1-year CMT + 2.165%, 3.796%, 4/01/2036(b)		586,135
	2,170,158	FHLMC, 1-year CMT + 2.266%, 3.820%, 2/01/2036(b)		2,285,603
	1,537,014	FHLMC, 12-month LIBOR + 1.819%, 3.825%, 4/01/2037(b)		1,611,954
	499,431	FHLMC, 6-month LIBOR + 1.666%, 3.888%, 6/01/2037(b)		508,523
	660,196	FHLMC, 1-year CMT + 2.106%, 3.892%, 9/01/2038(b)		693,374
	3,338,936	FHLMC, 1-year CMT + 2.252%, 3.970%, 3/01/2037(b)		3,509,375
	328,478	FHLMC, 1-year CMT + 2.250%, 3.976%, 2/01/2035(b)		345,542
	794,812	FHLMC, 1-year CMT + 2.245%, 3.978%, 3/01/2036(b)		836,671
	371,301	FHLMC, 12-month LIBOR + 1.841%, 4.051%, 11/01/2038(b)		390,139
	342,486	FHLMC, 12-month LIBOR + 1.912%, 4.056%, 12/01/2034(b)		360,992
	217,825	FHLMC, 12-month LIBOR + 2.180%, 4.084%, 3/01/2037(b)		230,180
	424,083	FHLMC, 12-month LIBOR + 1.846%, 4.086%, 3/01/2038(b)		445,553
	291,189	FHLMC, 12-month LIBOR + 1.610%, 4.112%, 11/01/2038(b)		303,982
	834,603	FHLMC, 1-year CMT + 2.249%, 4.243%, 9/01/2038(b)		877,570
	1,961,478	FHLMC, 12-month LIBOR + 1.896%, 4.271%, 9/01/2041(b)		2,057,834
	1,568,215	FHLMC, 12-month LIBOR + 1.767%, 4.365%, 9/01/2035(b)		1,646,615
	1,450,581	FHLMC, 1-year CMT + 2.220%, 4.441%, 7/01/2033(b)		1,523,054
	417,835	FNMA, 12-month LIBOR + 1.659%, 3.509%, 10/01/2033(b)		435,923
	2,663,106	FNMA, 12-month LIBOR + 1.800%, 3.550%, 10/01/2041(b)		2,796,928
	724,686	FNMA, 12-month LIBOR + 1.800%, 3.550%, 12/01/2041(b)		759,585
	810,334	FNMA, 1-year CMT + 2.185%, 3.599%, 1/01/2036(b)		854,774
	320,475	FNMA, 12-month LIBOR + 1.740%, 3.611%, 11/01/2035(b)		335,467
	84,661	FNMA, 12-month LIBOR + 1.820%, 3.625%, 1/01/2037(b)		89,017
	503,616	FNMA, 12-month LIBOR + 1.765%, 3.692%, 2/01/2037(b)		527,535
	2,870,187	FNMA, 1-year CMT + 2.217%, 3.763%, 4/01/2034(b)		3,023,516
	726,305	FNMA, 12-month LIBOR + 1.629%, 3.776%, 4/01/2037(b)		758,011
	628,776	FNMA, 1-year CMT + 2.489%, 3.860%, 5/01/2035(b)		667,687
	582,699	FNMA, 1-year CMT + 2.287%, 3.884%, 10/01/2033(b)		608,995
	1,983,763	FNMA, 12-month LIBOR + 1.789%, 3.888%, 3/01/2037(b)		2,083,346
	2,059,682	FNMA, 12-month LIBOR + 1.569%, 3.890%, 4/01/2037(b)		2,147,235
	454,991	FNMA, 1-year CMT + 2.185%, 3.895%, 12/01/2034(b)		472,444
	1,676,165	FNMA, 12-month LIBOR + 1.605%, 3.901%, 7/01/2035(b)		1,744,312
	461,333	FNMA, 1-year CMT + 2.127%, 3.917%, 9/01/2034(b)		483,708
	1,157,801	FNMA, 12-month LIBOR + 1.820%, 3.917%, 2/01/2047(b)		1,226,503
	1,019,384	FNMA, 6-month LIBOR + 1.543%, 3.946%, 7/01/2035(b)		1,053,746
	1,611,923	FNMA, 12-month LIBOR + 1.728%, 3.966%, 9/01/2037(b)		1,690,014
	105,636	FNMA, 6-month LIBOR + 1.522%, 4.022%, 2/01/2037(b)		109,232
	231,210	FNMA, 12-month LIBOR + 1.800%, 4.045%, 3/01/2034(b)		242,839
	877,404	FNMA, 1-year CMT + 2.234%, 4.067%, 4/01/2034(b)		922,084
	271,219	FNMA, 1-year CMT + 2.207%, 4.082%, 4/01/2033(b)		281,764
	421,269	FNMA, 12-month LIBOR + 1.679%, 4.093%, 11/01/2036(b)		440,879
	293,339	FNMA, 1-year CMT + 2.500%, 4.118%, 8/01/2036(b)		311,122
	3,868,530	FNMA, 1-year CMT + 2.191%, 4.119%, 10/01/2034(b)		4,068,217

See accompanying notes to financial statements.

| 56

Portfolio of Investments – as of September 30, 2018

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


Principal Amount		Description	Value (†)
		Hybrid ARMs — continued
$	1,787,503	FNMA, 1-year CMT + 2.184%, 4.164%, 11/01/2033(b)	$	1,875,696
	2,662,986	FNMA, 1-year CMT + 2.177%, 4.167%, 12/01/2040(b)		2,797,585
	829,137	FNMA, 1-year CMT + 2.182%, 4.202%, 6/01/2036(b)		871,899
	2,381,670	FNMA, 12-month LIBOR + 1.575%, 4.295%, 9/01/2037(b)		2,484,446
	204,976	FNMA, 12-month LIBOR + 1.576%, 4.326%, 8/01/2035(b)		214,796
	1,417,795	FNMA, 12-month LIBOR + 1.615%, 4.340%, 7/01/2038(b)		1,475,813
	441,200	FNMA, 1-year CMT + 2.145%, 4.358%, 9/01/2036(b)		463,989
	289,518	FNMA, 12-month LIBOR + 1.802%, 4.364%, 7/01/2041(b)		303,454
	1,457,334	FNMA, 1-year CMT + 2.272%, 4.384%, 6/01/2037(b)		1,526,785
	628,513	FNMA, 1-year CMT +2.287%, 4.392%, 6/01/2033(b)		657,523
	380,093	FNMA, 12-month LIBOR + 1.657%, 4.407%, 8/01/2038(b)		392,522
	700,931	FNMA, 12-month LIBOR + 1.712%, 4.462%, 8/01/2034(b)		733,471
	723,049	FNMA, 1-year CMT + 2.223%, 4.473%, 8/01/2035(b)		761,149
	123,854	FNMA, 1-year CMT + 2.439%, 4.641%, 8/01/2033(b)		130,221
	1,554,118	FNMA, 6-month LIBOR + 2.252%, 4.668%, 7/01/2037(b)		1,646,684
	534,942	FNMA, 12-month LIBOR + 2.473%, 5.098%, 6/01/2035(b)		570,434

				64,984,005

		Mortgage Related — 10.3%
	70,860	FHLMC, 3.000%, 10/01/2026		70,339
	518,706	FHLMC, 4.000%, with various maturities from 2024 to 2042(f)		529,009
	282,002	FHLMC, 4.500%, with various maturities from 2025 to 2034(f)		290,172
	121,273	FHLMC, 5.500%, 10/01/2023		124,808
	104,488	FHLMC, COFI + 1.250%, 5.769%, 6/01/2020(b)		105,715
	152,126	FHLMC, COFI + 1.250%, 5.887%, 8/01/2020(b)		154,143
	105,327	FHLMC, COFI + 1.250%, 5.922%, 10/01/2020(b)		107,006
	149,129	FHLMC, COFI + 1.250%, 5.953%, 11/01/2020(b)		151,329
	4,754	FHLMC, 6.000%, 11/01/2019		4,788
	259,019	FHLMC, 6.500%, 12/01/2034		288,520
	241	FHLMC, 7.500%, 6/01/2026		256
	145,104	FNMA, 3.000%, 3/01/2042		140,094
	1,472,760	FNMA, 5.000%, with various maturities from 2037 to 2038(f)		1,563,433
	699,418	FNMA, 5.500%, with various maturities from 2023 to 2033(f)		728,887
	775,487	FNMA, 6.000%, with various maturities from 2021 to 2022(f)		800,639
	187,538	FNMA, 6.500%, with various maturities from 2032 to 2037(f)		205,777
	302	FNMA, 7.000%, 12/01/2022		302
	73,558	FNMA, 7.500%, with various maturities from 2030 to 2032(f)		78,668
	3,325,573	GNMA, 1-month LIBOR + 2.528%, 3.834%, 2/20/2061(b)		3,465,775
	2,618,729	GNMA, 1-month LIBOR + 1.928%, 3.980%, 2/20/2063(b)		2,732,171
	3,544,458	GNMA, 1-month LIBOR + 2.158%, 4.249%, 3/20/2063(b)		3,694,341
	938,422	GNMA, 1-month LIBOR + 2.527%, 4.358%, 6/20/2065(b)		999,511
	866,159	GNMA, 1-month LIBOR + 2.226%, 4.361%, 5/20/2065(b)		918,017
	1,523,154	GNMA, 4.422%, 3/20/2063(a)		1,546,708
	3,627,474	GNMA, 4.424%, with various maturities from 2062 to 2063(a)(f)		3,664,482
	2,972,633	GNMA, 4.437%, 6/20/2063(a)		3,025,614
	1,845,836	GNMA, 4.448%, 12/20/2061(a)		1,859,091
	1,881,072	GNMA, 1-month LIBOR + 2.415%, 4.457%, 2/20/2063(b)		1,970,955
	6,965,011	GNMA, 4.481%, 12/20/2061(a)		6,999,329

See accompanying notes to financial statements.

57 |

Portfolio of Investments – as of September 30, 2018

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


Principal Amount		Description	Value (†)
		Mortgage Related — continued
$	3,625,053	GNMA, 4.493%, 10/20/2065(a)	$	3,781,166
	1,068,129	GNMA, 4.520%, 3/20/2062(a)		1,077,658
	5,181,120	GNMA, 4.524%, 12/20/2062(a)		5,252,729
	2,246,875	GNMA, 4.529%, 6/20/2062(a)		2,269,815
	326,054	GNMA, 4.534%, 8/20/2061(a)		328,585
	1,141,490	GNMA, 4.567%, 4/20/2063(a)		1,158,809
	524,454	GNMA, 4.579%, 7/20/2063(a)		543,284
	7,704,629	GNMA, 4.581%, 11/20/2062(a)		7,804,043
	1,914,930	GNMA, 4.604%, 2/20/2066(a)		1,995,409
	1,851,141	GNMA, 4.624%, 3/20/2064(a)		1,928,499
	829,314	GNMA, 4.626%, 3/20/2062(a)		835,459
	401,950	GNMA, 4.652%, 1/20/2064(a)		419,444
	2,953,744	GNMA, 4.667%, 2/20/2062(a)		2,977,187
	1,944,416	GNMA, 4.675%, 11/20/2063(a)		2,029,132
	1,244,074	GNMA, 4.683%, 2/20/2062(a)		1,253,258
	1,030,121	GNMA, 4.685%, 8/20/2061(a)		1,032,356
	1,479,170	GNMA, 4.688%, 5/20/2064(a)		1,547,219
	1,178,076	GNMA, 4.700%, with various maturities in 2061(a)(f)		1,181,049
	47,864	GNMA, 4.701%, 3/20/2061(a)		48,622
	514,045	GNMA, 4.718%, 8/20/2062(a)		519,168
	201,676	GNMA, 5.024%, 4/20/2061(a)		204,551
	12,751	GNMA, 6.000%, 12/15/2031		13,914
	54,949	GNMA, 6.500%, 5/15/2031		60,945
	64,181	GNMA, 7.000%, 10/15/2028		69,380

				74,551,560

		Non-Agency Commercial Mortgage-Backed Securities — 2.1%
	1,310,000	Commercial Mortgage Pass Through Certificates, Series 2012-LTRT, Class A2, 3.400%, 10/05/2030, 144A		1,259,912
	1,488,000	Commercial Mortgage Pass Through Certificates, Series 2014-UBS2, Class A5, 3.961%, 3/10/2047		1,512,482
	4,282,000	Commercial Mortgage Pass Through Certificates, Series 2016-DC2, Class ASB, 3.550%, 2/10/2049		4,300,496
	1,398,894	DBUBS Mortgage Trust, Series 2011-LC2A, Class A4, 4.537%, 7/10/2044, 144A		1,435,186
	2,600,000	Hudsons Bay Simon JV Trust, Series 2015-HB7, Class A7, 3.914%, 8/05/2034, 144A		2,554,370
	1,040,000	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C8, Class A4, 3.134%, 12/15/2048		1,026,378
	3,380,238	Starwood Retail Property Trust, Inc., Series 2014-STAR, Class A, 1-month LIBOR + 1.220%, 3.378%, 11/15/2027, 144A(b)		3,381,482

				15,470,306

		Sovereigns — 0.3%
	1,955,000	U.S. Department of Housing and Urban Development, 1.880%, 8/01/2019		1,942,996

		Treasuries — 39.8%
	3,255,000	U.S. Treasury Bond, 3.000%, 8/15/2048		3,132,556
	21,165,000	U.S. Treasury Note, 0.875%, 7/31/2019		20,867,367
	7,000,000	U.S. Treasury Note, 1.125%, 2/28/2021		6,718,086

See accompanying notes to financial statements.

| 58

Portfolio of Investments – as of September 30, 2018

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


Principal Amount		Description	Value (†)
		Treasuries — continued
$	20,395,000	U.S. Treasury Note, 1.125%, 6/30/2021	$	19,456,511
	5,000,000	U.S. Treasury Note, 1.125%, 7/31/2021		4,762,305
	40,920,000	U.S. Treasury Note, 1.125%, 8/31/2021		38,915,559
	20,945,000	U.S. Treasury Note, 1.250%, 7/31/2023		19,352,035
	4,500,000	U.S. Treasury Note, 1.375%, 12/15/2019		4,429,336
	8,220,000	U.S. Treasury Note, 1.375%, 10/31/2020		7,978,216
	19,360,000	U.S. Treasury Note, 1.375%, 1/31/2021		18,714,919
	5,000,000	U.S. Treasury Note, 1.500%, 10/31/2019		4,936,914
	6,600,000	U.S. Treasury Note, 1.500%, 7/15/2020		6,449,953
	12,955,000	U.S. Treasury Note, 1.750%, 10/31/2020		12,671,103
	7,550,000	U.S. Treasury Note, 1.750%, 11/15/2020		7,381,010
	15,000,000	U.S. Treasury Note, 1.750%, 12/31/2020		14,643,750
	8,460,000	U.S. Treasury Note, 1.750%, 6/30/2022		8,111,355
	12,605,000	U.S. Treasury Note, 1.750%, 9/30/2022		12,045,161
	7,895,000	U.S. Treasury Note, 1.875%, 4/30/2022		7,617,750
	17,015,000	U.S. Treasury Note, 2.000%, 12/31/2021		16,541,106
	2,855,000	U.S. Treasury Note, 2.000%, 11/15/2026		2,641,321
	13,945,000	U.S. Treasury Note, 2.125%, 9/30/2021		13,639,953
	13,805,000	U.S. Treasury Note, 2.250%, 1/31/2024		13,315,893
	1,780,000	U.S. Treasury Note, 2.250%, 11/15/2027		1,666,108
	13,415,000	U.S. Treasury Note, 2.875%, 9/30/2023		13,368,362
	7,925,000	U.S. Treasury Note, 3.000%, 9/30/2025		7,916,023

				287,272,652

		Total Bonds and Notes (Identified Cost $696,677,050)		681,352,519


	Short-Term Investments — 6.4%
	19,625,000	Federal Home Loan Bank Discount Notes 1.865% - 1.880%, 10/01/2018(g)(h)		19,625,000
	4,265,000	Federal Home Loan Bank Discount Notes 1.950% - 1.965%, 10/04/2018(g)(h)		4,264,249
	8,501,689	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/28/2018 at 1.300% to be repurchased at $8,502,610 on 10/01/2018 collateralized by $8,735,000 U.S. Treasury Bond, 3.125% due 8/15/2044 valued at $8,675,532 including accrued interest (Note 2 of Notes to Financial Statements)		8,501,689
	1,545,000	U.S. Treasury Bills, 1.973%, 10/04/2018(g)		1,544,740
	1,260,000	U.S. Treasury Bills, 2.073% - 2.090%, 12/27/2018(g)(h)		1,253,446
	11,075,000	U.S. Treasury Bills, 2.337% - 2.338%, 4/25/2019(g)(h)		10,926,547

		Total Short-Term Investments (Identified Cost $46,116,292)		46,115,671


		Total Investments — 100.8% (Identified Cost $742,793,342)		727,468,190
		Other assets less liabilities — (0.8)%		(5,628,820	)

		Net Assets — 100.0%	$	721,839,370

See accompanying notes to financial statements.

59 |

Portfolio of Investments – as of September 30, 2018

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



	(†)			See Note 2 of Notes to Financial Statements.
	(a)			Variable rate security. The interest rate adjusts periodically based on; (i) changes in current interest rates and/or prepayments on underlying pools of assets, if applicable, (ii) reference to a base lending rate plus or minus a margin, and/or (iii) reference to a base lending rate adjusted by a multiplier and/or subject to certain floors or caps. Rate as of September 30, 2018 is disclosed.
	(b)			Variable rate security. Rate as of September 30, 2018 is disclosed.
	(c)			Level 3 security. Value has been determined using significant unobservable inputs. See Note 3 of Notes to Financial Statements.
	(d)			Fair valued by the Fund’s adviser. At September 30, 2018, the value of these securities amounted to $191,318 or less than 0.1% of net assets. See Note 2 of Notes to Financial Statements.
	(e)			Security represents right to receive monthly interest payments on an underlying pool of mortgages. Principal shown is the outstanding par amount of the pool held as of the end of the period.
	(f)			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.
	(g)			Interest rate represents discount rate at time of purchase; not a coupon rate.
	(h)			The Fund’s investment in U.S. Government/Agency securities is comprised of various lots with differing discount rates. These separate investments, which have the same maturity date, 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, 2018, the value of Rule 144A holdings amounted to $22,886,960 or 3.2% of net assets.
	ABS			Asset-Backed Securities
	ARMs			Adjustable Rate Mortgages
	CMT			Constant Maturity Treasury
	COFI			Cost Of Funds Index
	FHLMC			Federal Home Loan Mortgage Corp.
	FNMA			Federal National Mortgage Association
	GNMA			Government National Mortgage Association
	LIBOR			London Interbank Offered Rate
	MTA			Monthly Treasury Average Interest
	REMIC			Real Estate Mortgage Investment Conduit

See accompanying notes to financial statements.

| 60

Portfolio of Investments – as of September 30, 2018

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

Industry Summary at September 30, 2018


Treasuries	39.8	%
Agency Commercial Mortgage-Backed Securities	16.4
Collateralized Mortgage Obligations	14.5
Mortgage Related	10.3
Hybrid ARMs	9.0
Non-Agency Commercial Mortgage-Backed Securities	2.1
Other Investments, less than 2% each	2.3
Short-Term Investments	6.4

Total Investments	100.8
Other assets less liabilities	(0.8	)

Net Assets	100.0	%

See accompanying notes to financial statements.

61 |

This Page Intentionally Left Blank

| 62

Statements of Assets and Liabilities

September 30, 2018


	High Income Fund			Intermediate Duration Bond Fund			Limited Term Government and Agency Fund
ASSETS
Investments at cost	$	173,649,034		$	169,734,887		$	742,793,342
Net unrealized depreciation		(6,130,388	)		(2,900,383	)		(15,325,152	)

Investments at value		167,518,646			166,834,504			727,468,190
Cash		25,918			—			9,373
Due from brokers (Note 2)		—			135,000			—
Foreign currency at value (identified cost $148,420, $0 and $0, respectively)		110,773			—			—
Receivable for Fund shares sold		149,523			207,578			688,006
Receivable for securities sold		1,169,826			199,725			39,273,842
Collateral received for forward foreign currency contracts (Notes 2 and 4)		270,000			—			—
Dividends and interest receivable		2,299,898			857,444			2,546,032
Unrealized appreciation on forward foreign currency contracts (Note 2)		142,661			—			—
Tax reclaims receivable		2,151			173			—
Receivable for variation margin on futures contracts (Note 2)		—			10,018			—
Receivable from distributor (Note 6d)		3,341			—			—
Prepaid expenses (Note 8)		175			178			705

TOTAL ASSETS		171,692,912			168,244,620			769,986,148

LIABILITIES
Payable for securities purchased		533,890			705,306			45,215,832
Payable for Fund shares redeemed		62,739			61,180			1,954,620
Unrealized depreciation on forward foreign currency contracts (Note 2)		57,977			—			—
Due to brokers (Note 2)		270,000			—			—
Distributions payable		—			—			271,646
Management fees payable (Note 6)		67,153			27,644			213,778
Deferred Trustees’ fees (Note 6)		155,399			109,688			309,083
Administrative fees payable (Note 6)		6,102			5,976			25,856
Payable to distributor (Note 6d)		—			1,142			11,397
Other accounts payable and accrued expenses		80,154			62,710			144,566

TOTAL LIABILITIES		1,233,414			973,646			48,146,778

NET ASSETS	$	170,459,498		$	167,270,974		$	721,839,370

NET ASSETS CONSIST OF:
Paid-in capital	$	175,916,232		$	174,404,022		$	766,892,846
Accumulated loss		(5,456,734	)		(7,133,048	)		(45,053,476	)

NET ASSETS	$	170,459,498		$	167,270,974		$	721,839,370

See accompanying notes to financial statements.

63 |

Statements of Assets and Liabilities (continued)

September 30, 2018


	High Income Fund		Intermediate Duration Bond Fund			Limited Term Government and Agency Fund
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	26,174,654	$	19,149,064		$	328,474,720

Shares of beneficial interest		6,154,187		1,920,371			29,612,020

Net asset value and redemption price per share	$	4.25	$	9.97		$	11.09

Offering price per share (100/[100-maximum sales charge] of net asset value) (Note 1)	$	4.44	$	10.41		$	11.35

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	6,248,273	$	2,425		$	23,341,410

Shares of beneficial interest		1,464,488		243			2,102,519

Net asset value and offering price per share	$	4.27	$	10.00	*	$	11.10

Class N shares:
Net assets	$	10,337,807	$	—		$	3,176,310

Shares of beneficial interest		2,434,256		—			285,529

Net asset value, offering and redemption price per share	$	4.25	$	—		$	11.12

Class Y shares:
Net assets	$	127,698,764	$	148,119,485		$	366,846,930

Shares of beneficial interest		30,107,457		14,859,825			32,964,191

Net asset value, offering and redemption price per share	$	4.24	$	9.97		$	11.13

*	Net asset value calculations have been determined utilizing fractional share and penny amounts.

See accompanying notes to financial statements.

| 64

Statements of Operations

For the Year Ended September 30, 2018


	High Income Fund			Intermediate Duration Bond Fund			Limited Term Government and Agency Fund
INVESTMENT INCOME
Interest	$	9,812,890		$	5,010,754		$	12,894,253
Dividends		215,042			—			—
Less net foreign taxes withheld		(1,444	)		(197	)		—

		10,026,488			5,010,557			12,894,253

Expenses
Management fees (Note 6)		1,042,957			442,379			2,613,773
Service and distribution fees (Note 6)		163,550			71,992			1,134,287
Administrative fees (Note 6)		76,503			77,895			312,980
Trustees’ fees and expenses (Note 6)		33,532			29,012			61,368
Transfer agent fees and expenses (Notes 6 and 7)		205,041			97,272			626,776
Audit and tax services fees		52,781			52,781			56,890
Custodian fees and expenses		24,257			19,866			40,614
Legal fees		3,583			3,753			13,843
Registration fees		77,187			37,477			69,490
Shareholder reporting expenses		44,024			24,789			95,216
Miscellaneous expenses (Note 8)		17,988			16,947			30,764

Total expenses		1,741,403			874,163			5,056,001
Less waiver and/or expense reimbursement (Note 6)		(190,287	)		(94,365	)		(12,855	)

Net expenses		1,551,116			779,798			5,043,146

Net investment income		8,475,372			4,230,759			7,851,107

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS, FORWARD FOREIGN CURRENCY CONTRACTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		1,405,486			(2,376,601	)		(1,854,197	)
Futures contracts		—			(359,501	)		—
Forward foreign currency contracts (Note 2d)		(165,859	)		—			—
Foreign currency transactions (Note 2c)		(34,283	)		—			—
Net change in unrealized appreciation (depreciation) on:
Investments		(7,071,893	)		(2,815,863	)		(6,897,838	)
Futures contracts		—			(21,437	)		—
Forward foreign currency contracts (Note 2d)		84,684			—			—
Foreign currency translations (Note 2c)		(42,550	)		—			—

Net realized and unrealized loss on investments, futures contracts, forward foreign currency contracts and foreign currency transactions		(5,824,415	)		(5,573,402	)		(8,752,035	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,650,957		$	(1,342,643	)	$	(900,928	)

See accompanying notes to financial statements.

65 |

Statements of Changes in Net Assets


	High Income Fund						Intermediate Duration Bond Fund
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2018			Year Ended September 30, 2017
FROM OPERATIONS:
Net investment income	$	8,475,372		$	8,976,856		$	4,230,759		$	3,346,060
Net realized gain (loss) on investments, futures contracts, forward foreign currency contracts and foreign currency transactions		1,205,344			838,850			(2,736,102	)		(364,816	)
Net change in unrealized appreciation (depreciation) on investments, futures contracts, forward foreign currency contracts and foreign currency translations		(7,029,759	)		3,999,707			(2,837,300	)		(1,513,370	)

Net increase (decrease) in net assets resulting from operations		2,650,957			13,815,413			(1,342,643	)		1,467,874

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Class A		(1,227,019	)		(1,577,362	)(a)		(457,955	)		(537,098	)(a)
Class C		(311,547	)		(453,429	)(a)		(30,450	)		(59,316	)(a)
Class N		(259,688	)		(41	)(a)		—			—
Class Y		(5,752,686	)		(6,175,066	)(a)		(3,945,026	)		(4,415,692	)(a)

Total distributions		(7,550,940	)		(8,205,898	)		(4,433,431	)		(5,012,106	)

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 11)		(3,848,432	)		(2,678,063	)		(6,673,219	)		21,450,975

Net increase (decrease) in net assets		(8,748,415	)		2,931,452			(12,449,293	)		17,906,743
NET ASSETS
Beginning of the year		179,207,913			176,276,461			179,720,267			161,813,524

End of the year	$	170,459,498		$	179,207,913		$	167,270,974		$	179,720,267

(a)	See Note 2h in Notes to Financial Statements.

See accompanying notes to financial statements.

| 66

Statements of Changes in Net Assets (continued)


	Limited Term Government and Agency Fund
	Year Ended September 30, 2018			Year Ended September 30, 2017
FROM OPERATIONS:
Net investment income	$	7,851,107		$	5,954,599
Net realized loss on investments		(1,854,197	)		(1,193,894	)
Net change in unrealized appreciation (depreciation) on investments		(6,897,838	)		(5,444,007	)

Net decrease in net assets resulting from operations		(900,928	)		(683,302	)

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Class A		(6,062,622	)		(6,178,474	)(a)
Class C		(373,941	)		(492,969	)(a)
Class N		(53,072	)		(19,353	)(a)
Class Y		(7,556,453	)		(6,976,388	)(a)

Total distributions		(14,046,088	)		(13,667,184	)

NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 11)		(4,981,212	)		(171,478,152	)

Net decrease in net assets		(19,928,228	)		(185,828,638	)
NET ASSETS
Beginning of the year		741,767,598			927,596,236

End of the year	$	721,839,370		$	741,767,598

(a)	See Note 2h in Notes to Financial Statements.

See accompanying notes to financial statements.

67 |

Financial Highlights

For a share outstanding throughout each period.


	High Income Fund—Class A
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	4.37		$	4.23		$	3.99		$	4.49		$	4.59

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.20			0.22			0.20			0.19			0.21
Net realized and unrealized gain (loss)		(0.14	)		0.12			0.21			(0.39	)		0.17

Total from Investment Operations		0.06			0.34			0.41			(0.20	)		0.38

LESS DISTRIBUTIONS FROM:
Net investment income		(0.18	)		(0.20	)		(0.16	)		(0.19	)		(0.22	)
Net realized capital gains		—			—			(0.01	)		(0.11	)		(0.26	)

Total Distributions		(0.18	)		(0.20	)		(0.17	)		(0.30	)		(0.48	)

Net asset value, end of the period	$	4.25		$	4.37		$	4.23		$	3.99		$	4.49

Total return(b)		1.41	%(c)		8.17	%(c)		10.66	%(c)		(4.78	)%(c)		8.42	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	26,175		$	34,039		$	34,820		$	37,870		$	42,630
Net expenses		1.05	%(d)		1.09	%(d)(e)		1.10	%(d)		1.11	%(d)(f)		1.14	%
Gross expenses		1.16	%		1.15	%		1.14	%		1.13	%		1.14	%
Net investment income		4.73	%		5.03	%		5.16	%		4.41	%		4.57	%
Portfolio turnover rate		55	%		46	%		38	%		69	%		59	%

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

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

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

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

(e)	Effective July 1, 2017, the expense limit decreased to 1.05%.

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

See accompanying notes to financial statements.

| 68

Financial Highlights (continued)

For a share outstanding throughout each period.


	High Income Fund—Class C
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	4.38		$	4.24		$	4.00		$	4.50		$	4.61

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.17			0.18			0.18			0.16			0.18
Net realized and unrealized gain (loss)		(0.13	)		0.12			0.20			(0.39	)		0.16

Total from Investment Operations		0.04			0.30			0.38			(0.23	)		0.34

LESS DISTRIBUTIONS FROM:
Net investment income		(0.15	)		(0.16	)		(0.13	)		(0.16	)		(0.19	)
Net realized capital gains		—			—			(0.01	)		(0.11	)		(0.26	)

Total Distributions		(0.15	)		(0.16	)		(0.14	)		(0.27	)		(0.45	)

Net asset value, end of the period	$	4.27		$	4.38		$	4.24		$	4.00		$	4.50

Total return(b)		0.86	%(c)		7.33	%(c)		9.81	%(c)		(5.48	)%(c)		7.60	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	6,248		$	11,227		$	12,288		$	12,609		$	14,555
Net expenses		1.80	%(d)		1.84	%(d)(e)		1.85	%(d)		1.86	%(d)(f)		1.89	%
Gross expenses		1.91	%		1.90	%		1.89	%		1.88	%		1.89	%
Net investment income		3.99	%		4.29	%		4.43	%		3.68	%		3.84	%
Portfolio turnover rate		55	%		46	%		38	%		69	%		59	%

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

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

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

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

(e)	Effective July 1, 2017, the expense limit decreased to 1.80%.

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

See accompanying notes to financial statements.

69 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	High Income Fund—Class N
	Year Ended September 30, 2018			Period Ended September 30, 2017*
Net asset value, beginning of the period	$	4.36		$	4.16

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.20			0.19
Net realized and unrealized gain (loss)		(0.12	)		0.18

Total from Investment Operations		0.08			0.37

LESS DISTRIBUTIONS FROM:
Net investment income		(0.19	)		(0.17	)

Net asset value, end of the period	$	4.25		$	4.36

Total return(b)		1.96	%		8.99	%(c)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	10,338		$	1
Net expenses(d)		0.75	%		0.75	%(e)(f)
Gross expenses		0.79	%		31.73	%(e)
Net investment income		4.65	%		5.19	%(e)
Portfolio turnover rate		55	%		46	%(g)

*	From commencement of Class operations on November 30, 2016 through September 30, 2017.

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

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

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

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

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

(f)	Effective July 1, 2017, the expense limit decreased to 0.75%.

(g)	Represents the Fund’s portfolio turnover rate for the year ended September 30, 2017.

See accompanying notes to financial statements.

| 70

Financial Highlights (continued)

For a share outstanding throughout each period.


	High Income Fund—Class Y
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	4.36		$	4.22		$	3.98		$	4.48		$	4.59

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.21			0.23			0.21			0.20			0.22
Net realized and unrealized gain (loss)		(0.14	)		0.12			0.21			(0.39	)		0.16

Total from Investment Operations		0.07			0.35			0.42			(0.19	)		0.38

LESS DISTRIBUTIONS FROM:
Net investment income		(0.19	)		(0.21	)		(0.17	)		(0.20	)		(0.23	)
Net realized capital gains		—			—			(0.01	)		(0.11	)		(0.26	)

Total Distributions		(0.19	)		(0.21	)		(0.18	)		(0.31	)		(0.49	)

Net asset value, end of the period	$	4.24		$	4.36		$	4.22		$	3.98		$	4.48

Total return		1.68	%(b)		8.47	%(b)		10.98	%(b)		(4.54	)%(b)		8.72	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	127,699		$	133,940		$	129,169		$	116,837		$	125,185
Net expenses		0.80	%(c)		0.84	%(c)(d)		0.85	%(c)		0.86	%(c)(e)		0.89	%
Gross expenses		0.91	%		0.90	%		0.89	%		0.88	%		0.89	%
Net investment income		4.98	%		5.28	%		5.43	%		4.67	%		4.83	%
Portfolio turnover rate		55	%		46	%		38	%		69	%		59	%

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

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

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

(d)	Effective July 1, 2017, the expense limit decreased to 0.80%.

(e)	Effective July 1, 2015, the expense limit decreased to 0.85%.

See accompanying notes to financial statements.

71 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Intermediate Duration Bond Fund—Class A*
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	10.29		$	10.52		$	10.39		$	10.39		$	10.34

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.22			0.17			0.20			0.20			0.22
Net realized and unrealized gain (loss)		(0.31	)		(0.12	)		0.17			0.03			0.11

Total from Investment Operations		(0.09	)		0.05			0.37			0.23			0.33

LESS DISTRIBUTIONS FROM:
Net investment income		(0.23	)		(0.20	)		(0.21	)		(0.22	)		(0.25	)
Net realized capital gains		—			(0.08	)		(0.03	)		(0.01	)		(0.03	)

Total Distributions		(0.23	)		(0.28	)		(0.24	)		(0.23	)		(0.28	)

Net asset value, end of the period	$	9.97		$	10.29		$	10.52		$	10.39		$	10.39

Total return(b)(c)		(0.85	)%		0.44	%		3.64	%		2.17	%		3.24	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	19,149		$	21,828		$	19,327		$	18,425		$	5,931
Net expenses(d)		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Gross expenses		0.70	%		0.72	%		0.72	%		0.71	%		0.85	%
Net investment income		2.17	%		1.69	%		1.89	%		1.93	%		2.07	%
Portfolio turnover rate		152	%		216	%		151	%		151	%		134	%

*	Effective August 31, 2016, Retail Class shares were redesignated as Class A shares.

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

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

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

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

See accompanying notes to financial statements.

| 72

Financial Highlights (continued)

For a share outstanding throughout each period.


	Intermediate Duration Bond Fund—Class C
	Year Ended September 30, 2018			Year Ended September 30, 2017			Period Ended September 30, 2016*
Net asset value, beginning of the period	$	10.30		$	10.53		$	10.53

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.13			0.10			0.01
Net realized and unrealized gain (loss)		(0.31	)		(0.13	)		0.00	(b)

Total from Investment Operations		(0.18	)		(0.03	)		0.01

LESS DISTRIBUTIONS FROM:
Net investment income		(0.12	)		(0.12	)		(0.01	)
Net realized capital gains		—			(0.08	)		—

Total Distributions		(0.12	)		(0.20	)		(0.01	)

Net asset value, end of the period	$	10.00		$	10.30		$	10.53

Total return(c)(d)		(1.71	)%		(0.29	)%		0.08	%(e)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	2		$	3,225		$	3,088
Net expenses(f)		1.40	%		1.40	%		1.40	%(g)
Gross expenses		1.45	%		1.48	%		1.56	%(g)
Net investment income		1.31	%		0.95	%		0.86	%(g)
Portfolio turnover rate		152	%		216	%		151	%

*	From commencement of Class operations on August 31, 2016 through September 30, 2016.

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

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

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

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

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

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

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

See accompanying notes to financial statements.

73 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Intermediate Duration Bond Fund—Class Y*
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	10.29		$	10.52		$	10.39		$	10.39		$	10.33

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.25			0.20			0.22			0.22			0.24
Net realized and unrealized gain (loss)		(0.31	)		(0.13	)		0.18			0.04			0.12

Total from Investment Operations		(0.06	)		0.07			0.40			0.26			0.36

LESS DISTRIBUTIONS FROM:
Net investment income		(0.26	)		(0.22	)		(0.24	)		(0.25	)		(0.27	)
Net realized capital gains		—			(0.08	)		(0.03	)		(0.01	)		(0.03	)

Total Distributions		(0.26	)		(0.30	)		(0.27	)		(0.26	)		(0.30	)

Net asset value, end of the period	$	9.97		$	10.29		$	10.52		$	10.39		$	10.39

Total return(b)		(0.60	)%		0.69	%		3.90	%		2.42	%		3.60	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	148,119		$	154,668		$	139,398		$	88,592		$	66,759
Net expenses(c)		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Gross expenses		0.45	%		0.47	%		0.47	%		0.47	%		0.57	%
Net investment income		2.43	%		1.93	%		2.11	%		2.15	%		2.31	%
Portfolio turnover rate		152	%		216	%		151	%		151	%		134	%

*	Effective August 31, 2016, Institutional Class shares were redesignated as Class Y shares.

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

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

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

See accompanying notes to financial statements.

| 74

Financial Highlights (continued)

For a share outstanding throughout each period.


	Limited Term Government and Agency Fund— Class A
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	11.32		$	11.51		$	11.57		$	11.61		$	11.68

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.11			0.08			0.11			0.14			0.16
Net realized and unrealized gain (loss)		(0.13	)		(0.09	)		0.00	(b)		0.01	(c)		0.01

Total from Investment Operations		(0.02	)		(0.01	)		0.11			0.15			0.17

LESS DISTRIBUTIONS FROM:
Net investment income		(0.21	)		(0.18	)		(0.17	)		(0.19	)		(0.24	)

Net asset value, end of the period	$	11.09		$	11.32		$	11.51		$	11.57		$	11.61

Total return(d)		(0.17	)%		(0.04	)%		0.93	%		1.26	%		1.44	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	328,475		$	336,227		$	442,671		$	346,317		$	314,360
Net expenses		0.80	%		0.80	%		0.77	%		0.77	%		0.80	%(e)
Gross expenses		0.80	%		0.80	%		0.77	%		0.77	%		0.80	%(e)
Net investment income		1.02	%		0.67	%		0.96	%		1.21	%		1.35	%
Portfolio turnover rate		157	%		126	%		109	%(f)		48	%		24	%

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

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

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

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

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

(f)	The variation in the Fund’s turnover rate from 2015 to 2016 was primarily due to fluctuation in the level of fund assets due to shareholder flows.

See accompanying notes to financial statements.

75 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Limited Term Government and Agency Fund—Class C
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	11.33		$	11.52		$	11.58		$	11.62		$	11.69

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)(a)		0.03			(0.01	)		0.02			0.05			0.07
Net realized and unrealized gain (loss)		(0.13	)		(0.08	)		0.00	(b)		0.01	(c)		0.01

Total from Investment Operations		(0.10	)		(0.09	)		0.02			0.06			0.08

LESS DISTRIBUTIONS FROM:
Net investment income		(0.13	)		(0.10	)		(0.08	)		(0.10	)		(0.15	)

Net asset value, end of the period	$	11.10		$	11.33		$	11.52		$	11.58		$	11.62

Total return(d)		(0.91	)%		(0.79	)%		0.18	%		0.51	%		0.69	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	23,341		$	43,319		$	73,027		$	63,167		$	56,936
Net expenses		1.55	%		1.55	%		1.52	%		1.53	%		1.55	%(e)
Gross expenses		1.55	%		1.55	%		1.52	%		1.53	%		1.55	%(e)
Net investment income (loss)		0.24	%		(0.09	)%		0.21	%		0.47	%		0.61	%
Portfolio turnover rate		157	%		126	%		109	%(f)		48	%		24	%

(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.

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

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

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

(f)	The variation in the Fund’s turnover rate from 2015 to 2016 was primarily due to fluctuation in the level of fund assets due to shareholder flows.

See accompanying notes to financial statements.

| 76

Financial Highlights (continued)

For a share outstanding throughout each period.


	Limited Term Government and Agency Fund—Class N
	Year Ended September 30, 2018			Period Ended September 30, 2017*
Net asset value, beginning of the period	$	11.36		$	11.39

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.15			0.05
Net realized and unrealized gain (loss)		(0.14	)		0.08	(b)

Total from Investment Operations		0.01			0.13

LESS DISTRIBUTIONS FROM:
Net investment income		(0.25	)		(0.16	)

Net asset value, end of the period	$	11.12		$	11.36

Total return(c)		0.09	%		1.12	%(d)
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	3,176		$	1,900
Net expenses(e)		0.46	%		0.47	%(f)
Gross expenses		0.48	%		0.50	%(f)
Net investment income		1.37	%		0.64	%(f)
Portfolio turnover rate		157	%		126	%(g)

*	From commencement of Class operations on February 1, 2017 through September 30, 2017.

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

(b)	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.

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

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

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

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

(g)	Represents the Fund’s portfolio turnover rate for the year ended September 30, 2017.

See accompanying notes to financial statements.

77 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Limited Term Government and Agency Fund—Class Y
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	11.36		$	11.55		$	11.61		$	11.65		$	11.72

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.14			0.11			0.14			0.17			0.18
Net realized and unrealized gain (loss)		(0.13	)		(0.09	)		0.00	(b)		0.01	(c)		0.02

Total from Investment Operations		0.01			0.02			0.14			0.18			0.20

LESS DISTRIBUTIONS FROM:
Net investment income		(0.24	)		(0.21	)		(0.20	)		(0.22	)		(0.27	)

Net asset value, end of the period	$	11.13		$	11.36		$	11.55		$	11.61		$	11.65

Total return		0.09	%		0.22	%		1.19	%		1.51	%		1.70	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	366,847		$	360,322		$	411,898		$	431,727		$	330,224
Net expenses		0.55	%		0.55	%		0.52	%		0.52	%		0.55	%(d)
Gross expenses		0.55	%		0.55	%		0.52	%		0.52	%		0.55	%(d)
Net investment income		1.26	%		0.92	%		1.20	%		1.45	%		1.58	%
Portfolio turnover rate		157	%		126	%		109	%(e)		48	%		24	%

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

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

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

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

(e)	The variation in the Fund’s turnover rate from 2015 to 2016 was primarily due to fluctuation in the level of fund assets due to shareholder flows.

See accompanying notes to financial statements.

| 78

Notes to Financial Statements

September 30, 2018

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

Loomis Sayles Funds I:

Loomis Sayles Intermediate Duration Bond Fund (the “Intermediate Duration Bond Fund”)

Loomis Sayles Funds II:

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

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

Each Fund is a diversified investment company.

The Funds each offer Class A, Class C and Class Y shares. In addition, High Income Fund and Limited Term Government and Agency Fund began offering Class N shares effective November 30, 2016 and February 1, 2017, respectively.

Class A shares of Intermediate Duration Bond Fund and High Income Fund are sold with a maximum front-end sales charge of 4.25%. Class A shares of Limited Term Government and Agency Fund are sold with a maximum front-end sales charge of 2.25%. Class C shares do not pay a front-end sales charge, pay higher Rule 12b-1 fees than Class A shares for 10 years (at which point they automatically convert to Class A shares) and may be subject to a contingent deferred sales charge (“CDSC”) of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are offered with an initial minimum investment of $1,000,000. Class Y shares are offered with an initial minimum investment of $100,000. Certain categories of investors are exempted from the minimum investment amounts for Class N and Class Y as outlined in the relevant Funds’ prospectus.

Most expenses can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV and Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), and Natixis ETF Trust. Expenses of a Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (such as the Rule 12b-1 fees applicable to Class A and Class C) and transfer agent fees for High Income Fund and Limited Term Government and Agency Fund are borne collectively for Class A, Class C and Class Y, and

79 |

Notes to Financial Statements (continued)

September 30, 2018

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

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

| 80

Notes to Financial Statements (continued)

September 30, 2018

be used to value debt and unlisted equity securities and senior loans where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Forward foreign currency contracts are valued utilizing interpolated rates determined based on information provided by an independent pricing service. Futures contracts are valued at the most recent settlement price on the exchange on which the adviser believes that, over time, they are traded most extensively. Centrally cleared credit default swap agreements are valued at settlement prices of the clearing house on which the contracts were traded or prices obtained from broker-dealers. Bilateral credit default swaps are valued based on mid prices (between the bid price and the ask price) supplied by an independent pricing service.

81 |

Notes to Financial Statements (continued)

September 30, 2018

As of September 30, 2018, securities held by the Funds were fair valued as follows:


Fund	Securities classified as fair valued		Percentage of Net Assets			Securities fair valued by the Fund’s adviser		Percentage of Net Assets
High Income Fund	$	553,512		0.3	%	$	1,334,593		0.8	%
Intermediate Duration Bond Fund		—		—			14,830		Less than 0.1	%
Limited Term Government and Agency Fund		—		—			191,318		Less than 0.1	%

b. Investment Transactions and Related Investment Income. Investment transactions are accounted for on a trade date plus one day basis for daily NAV calculation. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium, if applicable. Periodic principal adjustments for inflation-protected securities are recorded to interest income. Negative principal adjustments (in the event of deflation) are recorded as reductions of interest income to the extent of interest income earned, not to exceed the amount of positive principal adjustments on a cumulative basis. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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

| 82

Notes to Financial Statements (continued)

September 30, 2018

income tax purposes, net realized foreign exchange gains or losses are characterized as ordinary income and may, if the funds have net losses, reduce the amount of income available to be distributed by the Funds.

During the year ended September 30, 2018, the amount of income available to be distributed by High Income Fund has been reduced by $1,175,480, as a result of losses arising 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 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

83 |

Notes to Financial Statements (continued)

September 30, 2018

position increases or declines. Subsequent payments, known as “variation margin,” are made or received by a Fund, depending on the price fluctuations in the fair value of the contract and the value of cash or securities on deposit with the broker. The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statements of Assets and Liabilities as an asset (liability) and in the Statements of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses). Realized gain or loss on a futures position is equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, minus brokerage commissions. When a Fund enters into a futures contract certain risks may arise, such as illiquidity in the futures market, which may limit a Fund’s ability to close out a futures contract prior to settlement date, and unanticipated movements in the value of securities or interest rates.

Futures contracts are exchange-traded. Exchange-traded futures contracts are standardized and are settled through a clearing house with fulfillment supported by the credit of the exchange. Therefore, counterparty credit risks to the Funds are reduced; however, in the event that a counterparty enters into bankruptcy, a Fund’s claim against initial/variation margin on deposit with the counterparty may be subject to terms of a final settlement in bankruptcy court.

f. Swap Agreements. The Funds may enter into credit default swaps. A credit default swap is an agreement between two parties (the “protection buyer” and “protection seller”) to exchange the credit risk of an issuer (“reference obligation”) for a specified time period. The reference obligation may be one or more debt securities or an index of such securities. The Funds may be either the protection buyer or the protection seller. As a protection buyer, the Funds have the ability to hedge the downside risk of an issuer or group of issuers. As a protection seller, the Funds have the ability to gain exposure to an issuer or group of issuers whose bonds are unavailable or in short supply in the cash bond market, as well as realize additional income in the form of fees paid by the protection buyer. The protection buyer is obligated to pay the protection seller a stream of payments (“fees”) over the term of the contract, provided that no credit event, such as a default or a downgrade in credit rating, occurs on the reference obligation. The Funds may also pay or receive upfront premiums. If a credit event occurs, the protection seller must pay the protection buyer the difference between the agreed upon notional value and market value of the reference obligation. Market value in this case is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the value. The maximum potential amount of undiscounted future payments that a Fund as the protection seller could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement.

The notional amounts of swap agreements are not recorded in the financial statements. Swap agreements are valued daily and fluctuations in the value are

| 84

Notes to Financial Statements (continued)

September 30, 2018

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 Assets and Liabilities as fees receivable or payable. When received or paid, fees are recorded in the Statements of Operations as realized gain or loss. Upfront premiums paid or received by the Funds are recorded on the Statements of Assets and Liabilities as an asset or liability, respectively, and are amortized or accreted over the term of the agreement and recorded as realized gain or loss. Payments made or received by the Funds as a result of a credit event or termination of the agreement are recorded as realized gain or loss.

Swap agreements are privately negotiated in the over-the-counter (“OTC”) market and may be entered into as a bilateral contract or centrally cleared (“centrally cleared swaps”). Bilateral swap agreements are traded between counterparties and, as such, are subject to the risk that a party to the agreement will not be able to meet its obligations. In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Fund faces the CCP through a broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Subsequent payments, known as “variation margin,” are made or received by the Fund based on the daily change in the value of the centrally cleared swap agreement. For centrally cleared swaps, the Fund’s counterparty credit risk is reduced as the CCP stands between the Fund and the counterparty. The Funds cover their net obligations under outstanding swap agreements by segregating or earmarking cash or securities.

No swap agreements were held by the Funds during the year ended September 30, 2018.

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

85 |

Notes to Financial Statements (continued)

September 30, 2018

transactions require the Funds or counterparty to post cash and/or securities as collateral for the net mark-to-market exposure to the other party. The Funds cover their net obligations under outstanding delayed delivery commitments by segregating or earmarking cash or securities at the custodian.

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

There were no when-issued or delayed delivery securities held by the Funds as of September 30, 2018.

h. New Disclosure Requirements. In accordance with new reporting requirements pursuant to Regulation S-X of the Securities and Exchange Commission, presentation of certain amounts on the Statements of Changes in Net Assets, for the year ended September 30, 2017, have been conformed to meet the new disclosure requirements. These adjustments include Distributions to Shareholders; where the prior disclosure separately stated distributions from net investment income and distributions from net realized capital gains for each share class of the Fund, they are now combined into a single line item for each respective share class. In addition, disclosure of Distributions in Excess of Net Investment Income and Undistributed Net Investment Income, where applicable, has been removed from the Statements of Changes in Net Assets.

The following is a summary of the previously disclosed amounts, as reported at September 30, 2017:


High Income Fund
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A	$	(1,577,362	)
Class C		(453,429	)
Class N		(41	)
Class Y		(6,175,066	)

Total distributions	$	(8,205,898	)

DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME	$	(357,359	)

| 86

Notes to Financial Statements (continued)

September 30, 2018


Intermediate Duration Bond Fund
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A	$	(390,277	)
Class C		(36,839	)
Class Y		(3,322,106	)
Net realized capital gains
Class A		(146,821	)
Class C		(22,477	)
Class Y		(1,093,586	)

Total distributions	$	(5,012,106	)

DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME	$	(24,507	)


Limited Term Government and Agency Fund
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A	$	(6,178,474	)
Class C		(492,969	)
Class N		(19,353	)
Class Y		(6,976,388	)

Total distributions	$	(13,667,184	)

UNDISTRIBUTED NET INVESTMENT INCOME	$	367,737

i. Federal and Foreign Income Taxes. The Trusts treat each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of September 30, 2018 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.

87 |

Notes to Financial Statements (continued)

September 30, 2018

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

j. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as foreign currency gains and losses, premium amortization, capital gain distributions received, paydown gains and losses, contingent payment debt instruments, convertible bonds and passive foreign investment company adjustments. 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, futures contract mark-to-market, corporate actions, contingent payment debt instruments, convertible bonds, defaulted and/or non-income producing securities, forward foreign currency contract mark-to-market, passive foreign investment company adjustments and return of capital distributions received. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and net realized short-term capital gains are reported as 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, 2018 and 2017 were as follows:


	2018 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
High Income Fund	$	7,550,940	$	—	$	7,550,940
Intermediate Duration Bond Fund		4,433,431		—		4,433,431
Limited Term Government and Agency Fund		14,046,088		—		14,046,088

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Notes to Financial Statements (continued)

September 30, 2018


	2017 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
High Income Fund	$	8,205,898	$	—	$	8,205,898
Intermediate Duration Bond Fund		4,972,573		39,533		5,012,106
Limited Term Government and Agency Fund		13,667,184		—		13,667,184

For the year ended September 30, 2017 differences between amounts previously reported and now disclosed in Note 2h of the Notes to Financial Statements are primarily attributable to different book and tax treatment for short-term capital gains.

As of September 30, 2018, the components of distributable earnings on a tax basis were as follows:


	High Income Fund			Intermediate Duration Bond Fund			Limited Term Government and Agency Fund
Undistributed ordinary income	$	1,078,412		$	52,463		$	538,665
Undistributed long-term capital gains		469,476			—			—

Total undistributed earnings		1,547,888			52,463			538,665

Capital loss carryforward:
Short-term:
No expiration date		—			(3,060,576	)		(2,596,770	)
Long-term:
No expiration date		—			(1,011,526	)		(26,585,289	)

Total capital loss carryforward		—			(4,072,102	)		(29,182,059	)

Unrealized depreciation		(6,689,347	)		(3,003,720	)		(15,829,352	)

Total accumulated losses	$	(5,141,459	)	$	(7,023,359	)	$	(44,472,746	)

Capital loss carryforward utilized in the current year	$	989,819		$	—		$	—

89 |

Notes to Financial Statements (continued)

September 30, 2018

As of September 30, 2018, unrealized depreciation as a component of distributable earnings was as follows:


	High Income Fund			Intermediate Duration Bond Fund			Limited Term Government and Agency Fund
Unrealized depreciation
Investments	$	(4,535,979	)	$	(3,003,720	)	$	(15,829,352	)
Foreign currency translations		(2,153,368	)		—			—

Total unrealized depreciation	$	(6,689,347	)	$	(3,003,720	)	$	(15,829,352	)

As of September 30, 2018, the tax cost of investments (including derivatives, if applicable) and unrealized appreciation (depreciation) on a federal tax basis were as follows:


	High Income Fund			Intermediate Duration Bond Fund			Limited Term Government and Agency Fund
Federal tax cost	$	174,165,501		$	169,838,224		$	743,297,542

Gross tax appreciation	$	4,788,983		$	256,574		$	1,842,467
Gross tax depreciation		(11,435,839	)		(3,260,294	)		(17,671,819	)

Net tax depreciation	$	(6,646,856	)	$	(3,003,720	)	$	(15,829,352	)

Differences between these amounts and those reported in the components of distributable earnings are primarily attributable to unrealized foreign exchange gains or losses.

k. Loan Participations. High Income Fund may invest in loans to corporate, governmental or other borrowers. The Funds’ investments in loans may be in the form of participations in loans or assignments of all or a portion of loans. A loan is often administered by a bank or other financial institution that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, (i) a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the party from whom the Fund has purchased the participation and only upon receipt by that party of payments from the borrower and (ii) a Fund generally has no right to enforce compliance by the borrower with the terms of the loan agreement or to vote on matters arising under the loan agreement. Thus, a Fund may be subject to credit risk both of the party from whom it purchased the loan participation and the borrower and the Fund may have minimal control over the terms of any loan modification. When a Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan. Loan

| 90

Notes to Financial Statements (continued)

September 30, 2018

agreements and participations outstanding at the end of the period, if any, are listed in each applicable Fund’s Schedule of Investments.

l. Repurchase Agreements. Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of September 30, 2018, each Fund, as applicable, had investments in repurchase agreements for which the value of the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.

m. Due to/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 Funds and the various broker/dealers. The due to broker balance in the Statements of Assets and Liabilities for High Income Fund represents cash received as collateral for forward foreign currency contracts. The due from broker balance in the Statements of Assets and Liabilities for Intermediate Duration Bond Fund represents cash pledged as initial margin for futures contracts. In certain circumstances the Fund’s use of cash held at brokers is restricted by regulation or broker mandated limits.

n. 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

91 |

Notes to Financial Statements (continued)

September 30, 2018

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, 2018, none of the Funds had loaned securities under this agreement.

o. 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.

•

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.

| 92

Notes to Financial Statements (continued)

September 30, 2018

independent pricing service is considered to be reliable. Reliability of all security prices, including those obtained from an independent pricing service and broker-dealer bid prices, is tested in a variety of ways, including comparison to recent transaction prices and daily fluctuations, amongst other validation procedures in place. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ adviser pursuant to procedures approved by the Board of Trustees. Fair valued securities may be categorized in Level 3.

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2018, at value:

High Income Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
ABS Home Equity	$	—	$	2,165,123	$	683	(b)	$	2,165,806
Home Construction		—		3,795,902		12	(b)		3,795,914
All Other Non-Convertible Bonds(a)		—		135,772,118		—			135,772,118

Total Non-Convertible Bonds		—		141,733,143		695			141,733,838

Convertible Bonds(a)		—		16,618,165		—			16,618,165

Total Bonds and Notes		—		158,351,308		695			158,352,003

Loan Participations(a)		—		—		437,015	(c)		437,015
Senior Loans(a)		—		1,898,258		—			1,898,258
Preferred Stocks
Convertible Preferred Stocks(a)		—		2,304,876		—			2,304,876
Non-Convertible Preferred Stocks(a)		13,370		—		—			13,370

Total Preferred Stocks		13,370		2,304,876		—			2,318,246

Other Investments(a)		—		—		896,883	(d)		896,883
Common Stocks
Media		—		43,187		—			43,187
Oil, Gas & Consumable Fuels		1,317,745		200,608		—			1,518,353
Pharmaceuticals		570,342		—		—			570,342

Total Common Stocks		1,888,087		243,795		—			2,131,882

Warrants		353		—		—			353
Short-Term Investments		—		1,484,006		—			1,484,006
Forward Foreign Currency Contracts (unrealized appreciation)		—		142,661		—			142,661

Total	$	1,901,810	$	164,424,904	$	1,334,593		$	167,661,307

93 |

Notes to Financial Statements (continued)

September 30, 2018

High Income Fund (continued)

Liability Valuation Inputs

��


Description	Level 1		Level 2			Level 3		Total
Forward Foreign Currency Contracts (unrealized depreciation)	$	—	$	(57,977	)	$	—	$	(57,977	)

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

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

(c)	Fair valued by the Fund’s adviser using broker-dealer bid prices for which the inputs are unobservable to the Fund.

(d)	Fair valued by the Fund’s adviser ($8) or fair valued by the Fund’s adviser using broker-dealer bid prices for which the inputs are unobservable to the Fund ($896,875).

Intermediate Duration Bond Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
ABS Home Equity	$	—	$	1,471,616	$	14,830	(b)	$	1,486,446
All Other Bonds and Notes(a)		—		162,647,420		—			162,647,420

Total Bonds and Notes		—		164,119,036		14,830			164,133,866

Short-Term Investments		—		2,700,638		—			2,700,638

Total	$	—	$	166,819,674	$	14,830		$	166,834,504

Liability Valuation Inputs


Description	Level 1			Level 2		Level 3		Total
Futures Contracts (unrealized depreciation)	$	(124,712	)	$	—	$	—	$	(124,712	)

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

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

| 94

Notes to Financial Statements (continued)

September 30, 2018

Limited Term Government and Agency Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Collateralized Mortgage Obligations	$	—	$	104,673,700	$	191,318	(b)	$	104,865,018
All Other Bonds and Notes(a)		—		576,487,501		—			576,487,501

Total Bonds and Notes		—		681,161,201		191,318			681,352,519

Short-Term Investments		—		46,115,671		—			46,115,671

Total	$	—	$	727,276,872	$	191,318		$	727,468,190

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

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

For the year ended September 30, 2018, there were no transfers among Levels 1, 2 and 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, 2017 and/or September 30, 2018:

High Income Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2017			Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Home Equity	$	—		$	—	$	2,071		$	291		$	—
Home Construction		12			25,661		—			(25,661	)		—
Non-Agency Commercial Mortgage-Backed Securities		939,675			—		—			(4,675	)		—
Loan Participations
ABS Other		—			27		158			6,593			497,937
Other Investments
Aircraft ABS		1,853,562			—		—			(956,679	)		—
Common Stocks
Media		23,855			—		—			—			—
Oil, Gas & Consumable Fuels		154,523			—		(498,121	)		592,218			—
Warrants		—	(a)		—		—			—			—

Total	$	2,971,627		$	25,688	$	(495,892	)	$	(387,913	)	$	497,937

95 |

Notes to Financial Statements (continued)

September 30, 2018

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, 2018		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2018
Bonds and Notes
Non-Convertible Bonds
ABS Home Equity	$	(28,719	)	$	27,040	$	—		$	683	$	291
Home Construction		—			—		—			12		(25,661	)
Non-Agency Commercial Mortgage-Backed Securities		(935,000	)		—		—			—		—
Loan Participations
ABS Other		(67,700	)		—		—			437,015		6,593
Other Investments
Aircraft ABS		—			—		—			896,883		(956,679	)
Common Stocks
Media		—			—		(23,855	)		—		—
Oil, Gas & Consumable Fuels		(149,396	)		—		(99,224	)		—		—
Warrants		—			—		—			—		—

Total	$	(1,180,815	)	$	27,040	$	(123,079	)	$	1,334,593	$	(975,456	)

(a)	Includes a security fair valued at zero using Level 3 inputs that expired as worthless during period.

A debt security valued at $27,040 was transferred from Level 2 to Level 3 during the period ended September 30, 2018. At September 30, 2017, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2018, this security was valued at fair value as determined in good faith by the Fund’s adviser as an independent pricing service did not provide a reliable price for the security.

Common stocks valued at $123,079 were transferred from Level 3 to Level 2 during the period ended September 30, 2018. At September 30, 2017, these securities were valued at fair value as determined in good faith by the Fund’s adviser using broker-dealer bid prices for which the inputs are unobservable to the Fund. At September 30, 2018, these

| 96

Notes to Financial Statements (continued)

September 30, 2018

securities were valued on the basis of closing bid quotations 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.

Intermediate Duration Bond Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2017			Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
ABS Home Equity	$	—		$	—	$	(15	)	$	(222	)	$	—


Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2018			Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2018
Bonds and Notes
ABS Home Equity	$	(3,542	)	$	18,609	$	—		$	14,830		$	(222	)

A debt security valued at $18,609 was transferred from Level 2 to Level 3 during the period ended September 30, 2018. At September 30, 2017, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2018, this security was valued at fair value as determined in good faith by the Fund’s adviser as an independent pricing service did not provide a reliable price for the security.

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

97 |

Notes to Financial Statements (continued)

September 30, 2018

Limited Term Government and Agency Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2017			Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Purchases
Bonds and Notes
Collateralized Mortgage Obligations	$	274,554		$	—	$	(148	)	$	850	$	—


Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2018		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2018
Bonds and Notes
Collateralized Mortgage Obligations	$	(83,938	)	$	—	$	—		$	191,318	$	(506	)

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

High Income Fund is subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. The Fund may enter into forward foreign currency contracts for hedging purposes to protect the value of the Fund’s holdings of foreign securities. The Fund may also use forward foreign currency contracts to gain exposure to foreign currencies, regardless of whether securities denominated in such currencies are held in the Fund. During the year ended September 30, 2018, High Income Fund engaged in forward foreign currency transactions for hedging purposes.

Intermediate Duration Bond Fund is subject to the risk that changes in interest rates will affect the value of the Fund’s investments in fixed-income securities. A Fund will be subject to increased interest rate risk to the extent that it invests in fixed-income securities with longer maturities or durations, as compared to investing in fixed-income securities with shorter maturities or durations. The Fund may use futures contracts to

| 98

Notes to Financial Statements (continued)

September 30, 2018

hedge against changes in interest rates and to manage its duration in order to control interest rate risk without having to buy or sell portfolio securities. During the year ended September 30, 2018, Intermediate Duration Bond Fund used futures contracts for hedging purposes and to manage duration.

The following is a summary of derivative instruments for High Income Fund as of September 30, 2018, as reflected within the Statements of Assets and Liabilities:


Assets	Unrealized appreciation on forward foreign currency contracts
Over-the-counter asset derivatives Foreign exchange contracts	$	142,661

Liabilities	Unrealized depreciation on forward foreign currency contracts
Over-the-counter liability derivatives Foreign exchange contracts	$	(57,977	)

Transactions in derivative instruments for High Income Fund during the year ended September 30, 2018, as reflected within the Statements of Operations, were as follows:


Net Realized Gain (Loss) on:	Forward foreign currency contracts
Foreign exchange contracts	$	(165,859	)

Net Change in Unrealized Appreciation (Depreciation) on:	Forward foreign currency contracts
Foreign exchange contracts	$	84,684

The following is a summary of derivative instruments for Intermediate Duration Bond Fund as of September 30, 2018, as reflected within the Statements of Assets and Liabilities:


Liabilities	Unrealized depreciation on futures contracts
Exchange-traded liability derivatives Interest rate contracts	$	(124,712	)

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Notes to Financial Statements (continued)

September 30, 2018

Transactions in derivative instruments for Intermediate Duration Bond Fund during the year ended September 30, 2018, as reflected within the Statements of Operations, were as follows:


Net Realized Gain (Loss) on:	Futures contracts
Interest rate contracts	$	(359,501	)

Net Change in Unrealized Appreciation (Depreciation) on:	Futures contracts
Interest rate contracts	$	(21,437	)

As the Funds value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting under authoritative guidance for derivative instruments. The Funds’ investments in derivatives may represent an economic hedge; however, they are considered to be non-hedge transactions for the purpose of these disclosures.

The volume of forward foreign currency contract and futures contract activity, as a percentage of net assets, based on gross month-end notional amounts outstanding during the period, including long and short positions at absolute value, was as follows for the year ended September 30, 2018:


High Income Fund	Forwards
Average Notional Amount Outstanding		1.87	%
Highest Notional Amount Outstanding		4.31	%
Lowest Notional Amount Outstanding		0.95	%
Notional Amount Outstanding as of September 30, 2018		2.80	%

Intermediate Duration Bond Fund	Futures
Average Notional Amount Outstanding		6.88	%
Highest Notional Amount Outstanding		12.47	%
Lowest Notional Amount Outstanding		4.93	%
Notional Amount Outstanding as of September 30, 2018		12.37	%

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

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

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

| 100

Notes to Financial Statements (continued)

September 30, 2018

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

High Income Fund


Counterparty	Gross Amounts of Assets			Offset Amount			Net Asset Balance			Collateral (Received)/ Pledged			Net Amount
Bank of America, N.A.	$	126,332		$	—		$	126,332		$	(126,332	)	$	—
Goldman Sachs & Co.		12,728			(12,728	)		—			—			—
HSBC Bank USA		3,601			—			3,601			—			3,601

	$	142,661		$	(12,728	)	$	129,933		$	(126,332	)	$	3,601


Counterparty	Gross Amounts of Liabilities			Offset Amount			Net Liability Balance			Collateral (Received)/ Pledged			Net Amount
Goldman Sachs & Co.	$	(57,977	)	$	12,728		$	(45,249	)	$	—		$	(45,249	)

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Notes to Financial Statements (continued)

September 30, 2018

Counterparty risk is managed based on policies and procedures established by each Fund’s adviser. Such policies and procedures may include, but are not limited to, minimum counterparty credit rating requirements, monitoring of counterparty credit default swap spreads and posting of collateral. A Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the Fund’s aggregated unrealized gains and the amount of any collateral pledged to the counterparty, which may be offset by any collateral posted to the Fund by the counterparty. ISDA master agreements can help to manage counterparty risk by specifying collateral posting arrangements at pre-arranged exposure levels. Under these ISDA agreements, collateral is routinely transferred if the total net exposure in respect of certain transactions, net of existing collateral already in place, exceeds a specified amount (typically $250,000, depending on the counterparty). With exchange-traded derivatives, there is minimal counterparty credit risk to the Fund because the exchange’s clearing house, as counterparty to these instruments, stands between the buyer and the seller of the contract. Credit risk still exists in exchange-traded derivatives with respect to initial and variation margin that is held in a broker’s customer accounts. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro rata basis across all of the broker’s customers, potentially resulting in losses to the Fund. Based on balances reflected on each Fund’s Statement of Assets and Liabilities, the following table shows (i) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the Fund would incur if parties (including OTC derivative counterparties and brokers holding margin for exchange-traded derivatives) to the relevant financial instruments failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the Fund, and (ii) the amount of loss that the Fund would incur after taking into account master netting provisions pursuant to ISDA agreements, as of September 30, 2018:


Fund	Maximum Amount of Loss - Gross		Maximum Amount of Loss - Net
High Income Fund	$	142,661	$	3,601
Intermediate Duration Bond Fund		145,018		145,018

Net loss amount reflects cash received as collateral for High Income Fund of $270,000.

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Notes to Financial Statements (continued)

September 30, 2018

5. Purchases and Sales of Securities. For the year ended September 30, 2018, purchases and sales of securities (excluding short-term investments and including paydowns) were as follows:


	U.S. Government/ Agency Securities				Other Securities
Fund	Purchases		Sales		Purchases		Sales
High Income Fund	$	15,060,563	$	8,296,030	$	76,837,448	$	81,495,859
Intermediate Duration Bond Fund		91,116,861		116,365,077		176,274,235		160,832,425
Limited Term Government and Agency Fund		986,892,701		942,154,700		53,253,728		104,790,844

6. Management Fees and Other Transactions with Affiliates.


	Percentage of Average Daily Net Assets
Fund	First $500 million			Next $1.5 billion			Over $2 billion
High Income Fund		0.6000	%		0.6000	%		0.6000	%
Intermediate Duration Bond Fund		0.2500	%		0.2500	%		0.2500	%
Limited Term Government and Agency Fund		0.3750	%		0.3500	%		0.3000	%

Loomis Sayles has given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until January 31, 2019, may be terminated before then only with the consent of the Funds’ Board of Trustees, and are reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.

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Notes to Financial Statements (continued)

September 30, 2018

For the year ended September 30, 2018 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 C			Class N			Class Y
High Income Fund		1.05	%		1.80	%		0.75	%		0.80	%
Intermediate Duration Bond Fund		0.65	%		1.40	%		—			0.40	%
Limited Term Government and Agency Fund		0.80	%		1.55	%		0.50	%		0.55	%

For the year ended September 30, 2018, the management fees and waivers of management fees for each Fund were as follows:


Fund	Gross Management Fees		Contractual Waivers of Management Fees¹		Net Management Fees		Percentage of Average Daily Net Assets
Fund	Gross Management Fees		Contractual Waivers of Management Fees¹		Net Management Fees		Gross			Net
High Income Fund	$	1,042,957	$	190,092	$	852,865		0.60	%		0.49	%
Intermediate Duration Bond Fund		442,379		94,365		348,014		0.25	%		0.20	%
Limited Term Government and Agency Fund		2,613,773		—		2,613,773		0.37	%		0.37	%

For the year ended September 30, 2018, class-specific expenses have been reimbursed as follows:


	Reimbursement¹
Fund	Class A		Class C		Class N		Class Y		Total
Limited Term Government and Agency Fund	$	6,432	$	478	$	—	$	5,647	$	12,557

¹	Waiver/expense reimbursements are subject to possible recovery until September 30, 2019.

No expenses were recovered for any of the Funds during the year ended September 30, 2018 under the terms of the expense limitation agreements.

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Notes to Financial Statements (continued)

September 30, 2018

b. Service and Distribution Fees. Natixis Distribution, L.P. (“Natixis Distribution), which is a wholly-owned subsidiary of Natixis, has entered into a distribution agreement with the Trusts. Pursuant to this agreement, Natixis 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 and Class C shares (the “Class C Plans”).

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

For the year ended September 30, 2018, the service and distribution fees for each Fund were as follows:


	Service Fees				Distribution Fees
Fund	Class A		Class C		Class C
High Income Fund	$	73,200	$	22,588	$	67,762
Intermediate Duration Bond Fund		50,567		5,356		16,069
Limited Term Government and Agency Fund		803,275		82,753		248,259

c. Administrative Fees. Natixis Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts, Natixis ETF Trust and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0275% of the next $30 billion and 0.0225% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust of $10 million, which is reevaluated on an annual basis.

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Notes to Financial Statements (continued)

September 30, 2018

For the year ended September 30, 2018, the administrative fees for each Fund were as follows:


Fund	Administrative Fees
High Income Fund	$	76,503
Intermediate Duration Bond Fund		77,895
Limited Term Government and Agency Fund		312,980

For the year ended September 30, 2018, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:


Fund	Sub-Transfer Agent Fees
High Income Fund	$	180,154
Intermediate Duration Bond Fund		90,313
Limited Term Government and Agency Fund		346,984

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Notes to Financial Statements (continued)

September 30, 2018


Fund	Reimbursements of Sub-Transfer Agent Fees
Intermediate Duration Bond Fund	$	1,142
Limited Term Government and Agency Fund		11,397

As of September 30, 2018, Natixis Distribution owes the High Income Fund $3,341 for overpayments of sub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as receivable from distributor).

e. Commissions. Commissions (including CDSCs) on Fund shares retained by Natixis Distribution during the year ended September 30, 2018 were as follows:


Fund	Commissions
High Income Fund	$	2,275
Intermediate Duration Bond Fund		88
Limited Term Government and Agency Fund		20,543

f. Trustees Fees and Expenses. The Trusts do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distribution, Natixis or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $340,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that he attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $170,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, the chairperson of the Contract Review Committee and the chairperson of the Audit Committee each receive an additional retainer fee at the annual rate of $20,000. The chairperson of the Governance Committee receives an additional retainer fee at the annual rate of $12,000. Each Contract Review Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust based on a formula that

107 |

Notes to Financial Statements (continued)

September 30, 2018

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. As of September 30, 2018, the percentage of each Fund’s net assets owned by affiliates is as follows:


Intermediate Duration Bond Fund		Percentage of Net Assets
Loomis Sayles Employees’ Profit Sharing Retirement Plan		1.16%
Natixis Advisors		less than 0.01%

Limited Term Government and Agency Fund		Percentage of Net Assets
Loomis Sayles Employees’ Profit Sharing Retirement Plan		0.23%
Natixis Sustainable Future 2015 Fund		0.08%
Natixis Sustainable Future 2020 Fund		0.07%
Natixis Sustainable Future 2025 Fund		0.05%
Natixis Sustainable Future 2030 Fund		0.03%
Natixis Sustainable Future 2035 Fund		0.02%
Natixis Sustainable Future 2040 Fund		0.01%
Natixis Sustainable Future 2045 Fund		0.01%
Natixis Sustainable Future 2050 Fund		less than 0.01%
Natixis Sustainable Future 2055 Fund		less than 0.01%
Natixis Sustainable Future 2060 Fund		less than 0.01%

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Notes to Financial Statements (continued)

September 30, 2018

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

h. Reimbursement of Transfer Agent Fees and Expenses. Natixis Advisors has given a binding contractual undertaking to the High Income Fund and Limited Term Government and Agency Fund to reimburse any and all transfer agency expenses for the Funds’ Class N shares. This undertaking is in effect through January 31, 2019 and is not subject to recovery under the expense limitation agreement described above.

For the year ended September 30, 2018, Natixis Advisors reimbursed the Funds for transfer agency expenses as follows:


	Reimbursement of Transfer Agency Expenses
Fund	Class N
High Income Fund	$	195
Limited Term Government and Agency Fund		298

i. Payment by Affiliates. For the year ended September 30, 2018, Loomis Sayles reimbursed Intermediate Duration Bond Fund $452, High Income Fund $4,468 and Limited Term Government and Agency Fund $9,370 in connection with trading errors.

7. Class-Specific Transfer Agent Fees and Expenses. Transfer agent fees and expenses attributable to Class A, 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. Transfer agent fees and expenses attributable to Class N are allocated to Class N.

Intermediate Duration Bond Fund allocates transfer agent fees and expenses on a pro rata basis based on the relative net assets of each class to the total net assets of those classes.

For the year ended September 30, 2018, the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):


	Transfer Agent Fees and Expenses
Fund	Class A		Class C		Class N		Class Y
High Income Fund	$	35,697	$	10,941	$	195	$	158,208
Limited Term Government and Agency Fund		284,075		29,226		298		313,177

109 |

Notes to Financial Statements (continued)

September 30, 2018

limit at any time), subject to each Fund’s investment restrictions and its contractual obligations under the line of credit. Interest is charged to the Funds based upon the terms set forth in the agreement. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit. The Funds paid an arrangement fee, an upfront fee, and other fees in connection with the new line of credit agreement, which are being amortized over a period of 364 days and are reflected as miscellaneous expenses on the Statements of Operations. The unamortized balance is reflected as prepaid expenses on the Statements of Assets and Liabilities.

For the year ended September 30, 2018, none of the Funds had borrowings under this agreement.

9. Concentration of Risk. Limited Term Government and Agency Fund’s investments in mortgage-related and asset-backed securities are subject to certain risks not associated with investments in other securities. Mortgage-related and asset-backed securities are subject to the risk that unexpected changes in interest rates will have a direct effect on expected maturity. A shortened maturity may result in the reinvestment of prepaid amounts in securities with lower yields than the original obligations. An extended maturity may result in a reduction of a security’s value.

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

| 110

Notes to Financial Statements (continued)

September 30, 2018

of more than 5% of the Fund’s total outstanding shares. The number of such accounts, based on accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings were as follows:


Fund	Number of 5% Account Holders		Percentage of Ownership
High Income Fund		1		6.07	%
Intermediate Duration Bond Fund		2		15.75	%

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Notes to Financial Statements (continued)

September 30, 2018

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


	Year Ended September 30, 2018					Year Ended September 30, 2017(a)
High Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	1,898,245		$	8,166,854		2,869,491		$	12,272,049
Issued in connection with the reinvestment of distributions	243,140			1,040,786		306,554			1,311,455
Redeemed	(3,771,177	)		(16,210,208	)	(3,623,241	)		(15,504,179	)

Net change	(1,629,792	)	$	(7,002,568	)	(447,196	)	$	(1,920,675	)

Class C
Issued from the sale of shares	122,450		$	527,966		471,847		$	2,010,717
Issued in connection with the reinvestment of distributions	61,116			262,711		88,277			378,228
Redeemed	(1,279,539	)		(5,486,771	)	(897,288	)		(3,849,291	)

Net change	(1,095,973	)	$	(4,696,094	)	(337,164	)	$	(1,460,346	)

Class N
Issued from the sale of shares	2,698,050		$	11,518,120		240		$	1,001
Issued in connection with the reinvestment of distributions	61,394			259,688		10			41
Redeemed	(325,438	)		(1,383,775	)	—			—

Net change	2,434,006		$	10,394,033		250		$	1,042

Class Y
Issued from the sale of shares	9,865,696		$	42,237,402		9,715,068		$	41,499,158
Issued in connection with the reinvestment of distributions	1,120,509			4,782,844		1,184,729			5,054,088
Redeemed	(11,587,593	)		(49,564,049	)	(10,799,917	)		(45,851,330	)

Net change	(601,388	)	$	(2,543,803	)	99,880		$	701,916

Increase (decrease) from capital share transactions	(893,147	)	$	(3,848,432	)	(684,230	)	$	(2,678,063	)

(a)	From commencement of operations on November 30, 2016 through September 30, 2017 for Class N shares.

| 112

Notes to Financial Statements (continued)

September 30, 2018

11. Capital Shares (continued).


	Year Ended September 30, 2018					Year Ended September 30, 2017
Intermediate Duration Bond Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	419,513		$	4,226,997		495,534		$	5,098,171
Issued in connection with the reinvestment of distributions	44,777			451,282		51,612			528,641
Redeemed	(664,405	)		(6,691,192	)	(263,005	)		(2,708,601	)

Net change	(200,115	)	$	(2,012,913	)	284,141		$	2,918,211

Class C
Issued from the sale of shares	244		$	3,933		14,097		$	144,076
Issued in connection with the reinvestment of distributions	3,007			30,450		5,796			59,316
Redeemed	(316,184	)		(3,174,018	)	—			—

Net change	(312,933	)	$	(3,139,635	)	19,893		$	203,392

Class Y
Issued from the sale of shares	3,847,881		$	38,930,563		6,045,802		$	62,224,245
Issued in connection with the reinvestment of distributions	331,230			3,335,145		342,222			3,505,355
Redeemed	(4,349,784	)		(43,786,379	)	(4,606,062	)		(47,400,228	)

Net change	(170,673	)	$	(1,520,671	)	1,781,962		$	18,329,372

Increase (decrease) from capital share transactions	(683,721	)	$	(6,673,219	)	2,085,996		$	21,450,975

113 |

Notes to Financial Statements (continued)

September 30, 2018

11. Capital Shares (continued).


	Year Ended September 30, 2018					Year Ended September 30, 2017(a)
Limited Term Government and Agency Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	8,514,333		$	95,199,331		3,991,528		$	45,399,327
Issued in connection with the reinvestment of distributions	415,392			4,644,926		454,875			5,170,894
Redeemed	(9,012,064	)		(100,870,225	)	(13,213,781	)		(150,164,121	)

Net change	(82,339	)	$	(1,025,968	)	(8,767,378	)	$	(99,593,900	)

Class C
Issued from the sale of shares	404,620		$	4,537,413		757,506		$	8,626,416
Issued in connection with the reinvestment of distributions	25,353			283,986		29,711			337,959
Redeemed	(2,149,966	)		(24,060,145	)	(3,304,176	)		(37,593,668	)

Net change	(1,719,993	)	$	(19,238,746	)	(2,516,959	)	$	(28,629,293	)

Class N
Issued from the sale of shares	707,393		$	7,898,516		166,111		$	1,892,253
Issued in connection with the reinvestment of distributions	4,698			52,619		1,700			19,353
Redeemed	(593,846	)		(6,627,527	)	(527	)		(5,984	)

Net change	118,245		$	1,323,608		167,284		$	1,905,622

Class Y
Issued from the sale of shares	15,567,203		$	174,641,549		13,725,909		$	156,563,024
Issued in connection with the reinvestment of distributions	509,058			5,709,282		431,654			4,921,367
Redeemed	(14,832,325	)		(166,390,937	)	(18,111,061	)		(206,644,972	)

Net change	1,243,936		$	13,959,894		(3,953,498	)	$	(45,160,581	)

Increase (decrease) from capital share transactions	(440,151	)	$	(4,981,212	)	(15,070,551	)	$	(171,478,152	)

(a)	From commencement of operations on February 1, 2017 through September 30, 2017 for Class N shares.

12. Subsequent Event. On October 5, 2018, the Board of Trustees approved a change to the fiscal year end of High Income Fund from September 30 to December 31.

| 114

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Loomis Sayles Funds I and Loomis Sayles Funds II and Shareholders of Loomis Sayles Intermediate Duration Bond Fund, Loomis Sayles High Income Fund and Loomis Sayles Limited Term Government and Agency Fund:

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Loomis Sayles Intermediate Duration Bond Fund (one of the funds constituting Loomis Sayles Funds I), and Loomis Sayles High Income Fund and Loomis Sayles Limited Term Government and Agency Fund (two of the funds constituting Loomis Sayles Funds II) (hereafter collectively referred to as the “Funds”) as of September 30, 2018, the related statements of operations for the year ended September 30, 2018, the statements of changes in net assets for each of the two years in the period ended September 30, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of September 30, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended September 30, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

115 |

Report of Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 20, 2018

We have served as the auditor of one or more investment companies in the Natixis Investment Company Complex since at least 1995. We have not determined the specific year we began serving as auditor.

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2018 U.S. Tax Distribution Information to Shareholders (Unaudited)


Fund	Qualifying Percentage
High Income		1.67	%

Fund

High Income

117 |

Trustee and Officer Information

The tables below provide certain information regarding the trustees and officers of Loomis Sayles Funds I and Loomis Sayles Funds II (the “Trusts”). Unless otherwise indicated, the address of all persons below is 888 Boylston Street, Suite 800, Boston, MA 02199-8197. 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

Kenneth A. Drucker (1945)	Chairperson of the Board of Trustees since January 2017 Trustee since 2008 Ex Officio member of Audit Committee, Contract Review Committee and Governance Committee	Retired	51 None	Significant experience on the Board and on the boards of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)

Edmond J. English (1953)	Trustee since 2013 Audit Committee Member and Governance Committee Member	Executive Chairman; formerly, Chief Executive Officer of Bob’s Discount Furniture (retail)	51 Director, Burlington Stores, Inc. (retail)	Significant experience on the Board and significant experience on the boards of other business organizations (including retail companies and a bank); executive experience (including at a retail company)

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Trustee and Officer Information


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

INDEPENDENT TRUSTEES continued

Richard A. Goglia (1951)	Trustee since 2015 Audit Committee Member	Retired; formerly Vice President and Treasurer of Raytheon Company (defense)	51 None	Experience on the Board and executive experience (including his role as vice president and treasurer of a defense company and experience at a financial services company)

Wendell J. Knox (1948)	Trustee since 2009 Contract Review Committee Member and Governance Committee Member	Director of Abt Associates Inc. (research and consulting)	51 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the boards of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

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

Martin T. Meehan (1956)	Trustee since 2012 Audit Committee Member	President, University of Massachusetts; formerly, Chancellor and faculty member, University of Massachusetts Lowell	51 None	Significant experience on the Board and on the boards of other business organizations; experience as President of the University of Massachusetts; government experience (including as a member of the U.S. House of Representatives); academic experience

Maureen B. Mitchell (1951)	Trustee since 2017 Contract Review Committee Member	Retired; formerly President, Global Sales and Marketing, GE Asset Management, Inc. (financial services)	51 Director, Sterling Bancorp (Bank)	Experience on the Board and on the boards of other business organizations; financial services industry and executive experience (including role as president of global sales and marketing at a financial services company)

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Trustee and Officer Information


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

INDEPENDENT TRUSTEES continued

James P. Palermo (1955)	Trustee since 2016 Contract Review Committee Member	Founding Partner, Breton Capital Management, LLC (private equity); Partner, STEP Partners, LLC (private equity); formerly, Chief Executive Officer of Global Client Management of The Bank of New York Mellon Corporation	51 Director, FutureFuel Corp. (Chemicals and Biofuels)	Experience on the Board and on the boards of other business organizations; financial services industry and executive experience (including roles as chief executive officer of client management and asset servicing for a banking and financial services company)

Erik R. Sirri (1958)	Trustee since 2009 Chairperson of the Audit Committee	Professor of Finance at Babson College	51 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

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

Peter J. Smail (1952)	Trustee since 2009 Chairperson of the Contract Review Committee and Governance Committee Member	Retired	51 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

Cynthia L. Walker (1956)	Trustee since 2005 Chairperson of the Governance Committee and Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine	51 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)

INTERESTED TRUSTEES

Kevin P. Charleston³ (1965) One Financial Center Boston, MA 02111	Trustee since 2015 President and Chief Executive Officer of Loomis Sayles Funds I since 2015	President, Chief Executive Officer and Chairman of the Board of Directors; formerly, Chief Financial Officer, Loomis, Sayles & Company, L.P.	51 None	Experience on the Board; continuing service as President, Chief Executive Officer and Chairman of the Board of Directors of Loomis, Sayles & Company, L.P.

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Trustee and Officer Information


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

INTERESTED TRUSTEES continued

David L. Giunta⁴ (1965)	Trustee since 2011 President of Loomis Sayles Funds II and Executive Vice President of Loomis Sayles Funds I since 2008; Chief Executive Officer of Loomis Sayles Funds II since 2015	President and Chief Executive Officer, Natixis Advisors, L.P., Natixis Distribution, L.P., Natixis Distribution Corporation and Chairman of the Board of Natixis Distribution Corporation	51 None	Significant experience on the Board; experience as President and Chief Executive Officer, Natixis Advisors, L.P., Natixis Distribution, L.P., Natixis Distribution Corporation and Chairman of the Board of Natixis Distribution Corporation

¹	Each trustee serves until retirement, resignation or removal from the Board. The current retirement age is 75. The position of Chairperson of the Board is appointed for a three-year term.

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

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

⁴

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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 TRUSTS

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

Russell L. Kane (1969)	Secretary, Clerk and Chief Legal Officer	Since 2016	Executive Vice President, General Counsel, Secretary and Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.; formerly, Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.

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

Rosa Licea-Mailloux (1976)	Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer	Since 2016	Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.; formerly, Associate General Counsel, Natixis 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.

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LOGO

Annual Report

September 30, 2018

Loomis Sayles Investment Grade Bond Fund

Loomis Sayles Strategic Income Fund

Table of Contents



Portfolio Review			1

Portfolio of Investments			18

Financial Statements			45

Notes to Financial Statements			59

LOGO

LOOMIS SAYLES INVESTMENT GRADE BOND FUND


Managers	Symbols
Matthew J. Eagan, CFA^®	Class A	LIGRX
Daniel J. Fuss, CFA^®, CIC	Class C	LGBCX
Brian P. Kennedy	Class N	LGBNX
Elaine M. Stokes	Class Y	LSIIX
Loomis, Sayles & Company, L.P.	Admin Class	LIGAX

Investment Goal

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

Market Conditions

Investment grade corporate bonds posted negative returns, though they outperformed Treasuries of similar duration (price sensitivity to interest rate changes). Spreads (the difference in yield between non-Treasury and Treasury securities of similar maturity) generally widened and the sector’s relatively longer duration weighed on returns as yields rose.

Despite some upward movement in yields, several developed economy government bond markets remained at a disadvantage relative to the United States from an income-generating perspective. The US dollar posted strong performance relative to other developed and emerging market currencies, particularly in the latter half of the period. US dollar strength minimized returns for emerging market debt investors.

1 |

Performance Results

For the 12 months ended September 30, 2018, Class Y shares of the Loomis Sayles Investment Grade Bond Fund returned 0.43 %. The Fund outperformed its benchmark, the Bloomberg Barclays U.S. Government/Credit Bond Index, which returned -1.37%.

Explanation of Fund Performance

The Fund’s out-of-benchmark exposure to high yield corporate credit contributed positively to relative return, with basic industry, energy and finance holdings the strongest performers. A below-benchmark stance with respect to overall portfolio duration (and corresponding sensitivity to interest rate changes) had a positive impact on relative return in a rising rate environment. Finally, issuer selection within investment grade corporate credit added to performance, most notably within the banking, basic industry and communications segments.

On the downside, an allocation to non-US-dollar-denominated issues had a negative impact on relative performance. Holdings denominated in the New Zealand dollar and Canadian dollar were the worst performers within the sector.

Outlook

We believe the portfolio is well-positioned, with broad diversification, a lower risk profile and substantial liquidity built into its holdings. We are closely monitoring risk factors that

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LOOMIS SAYLES INVESTMENT GRADE BOND FUND

may introduce market volatility and intend to use any dislocation as a buying opportunity in areas with supportive fundamentals.

Investment Changes

Effective November 1, 2018, the Fund’s principal investment strategies will be amended and the Fund’s fiscal year end will change from September 30 to December 31. The Fund will no longer invest in non-US-dollar-denominated bonds or equity securities, among other changes. These changes are intended to eliminate the volatility associated with currency and equity allocations and address the variability of the Fund’s monthly ordinary income distributions. Additionally, Dan Fuss will no longer serve as a co-portfolio manager of the Fund. Matt Eagan, Brian Kennedy, and Elaine Stokes will continue to manage the Fund, representing over 50 years of combined investment experience.

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

Hypothetical Growth of $100,000 Investment in Class Y Shares⁴

September 30, 2008 through September 30, 2018

LOGO

3 |

Average Annual Total Returns — September 30, 2018⁴


													Expense Ratios⁵
	1 Year			5 Years			10 Years			Life of Class N			Gross			Net

Class Y (Inception 12/31/96)
NAV		0.43	%		2.85	%		6.27	%		—	%		0.57	%		0.53	%

Class A (Inception 12/31/96)
NAV		0.19			2.59			6.00			—			0.82			0.78
With 4.25% Maximum Sales Charge		-4.05			1.71			5.54			—

Class C (Inception 9/12/03)
NAV		-0.53			1.83			5.22			—			1.57			1.53
With CDSC²		-1.50			1.83			5.22			—

Class N (Inception 2/1/13)
NAV		0.50			2.96			—			2.44			0.48			0.48

Admin Class (Inception 2/1/10)¹
NAV		-0.07			2.35			5.73			—			1.03			1.03

Comparative Performance
Bloomberg Barclays U.S. Government/Credit Bond Index³		-1.37			2.23			3.95			1.71

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

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

The Bloomberg Barclays U.S. Government/Credit Bond Index is the non-securitized component of the U.S. Aggregate Index and was the first macro index launched by Barclays Capital. The U.S. Government/Credit Bond Index includes Treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year), government-related issues (i.e., agency, sovereign, supranational, and local authority debt), and corporates. The U.S. Government/Credit Bond Index was launched on January 1, 1979, with index history backfilled to 1973, and is a subset of the U.S. Aggregate Index.

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

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense caps set to expire on 1/31/20. When a Fund’s expenses are below the cap, gross and net expense ratios will be the same. See Note 5 of the Notes to Financial Statements for more information about the Fund’s expense caps.

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LOOMIS SAYLES STRATEGIC INCOME FUND


Managers	Symbols
Matthew J. Eagan, CFA^®	Class A	NEFZX
Daniel J. Fuss, CFA^®, CIC	Class C	NECZX
Brian P. Kennedy	Class N	NEZNX
Elaine M. Stokes	Class Y	NEZYX
Loomis, Sayles & Company, L.P.	Admin Class	NEZAX

Investment Goal

The Fund seeks high current income with a secondary objective of capital growth.

Market Conditions

Investment grade corporate bonds posted negative returns, though they outperformed Treasuries of similar duration (price sensitivity to interest rate changes). Spreads (the difference in yield between non-Treasury and Treasury securities of similar maturity) generally widened and the sector’s relatively longer duration weighed on returns as yields rose.

5 |

Performance Results

For the 12 months ended September 30, 2018, Class Y shares of the Loomis Sayles Strategic Income Fund returned 1.66%. The Fund outperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, which returned -1.22%.

Explanation of Fund Performance

The Fund’s allocation to high yield corporate credit contributed positively to performance relative to the benchmark, with consumer non-cyclical, electric and energy names bolstering return. A below-benchmark stance with respect to overall portfolio duration (and corresponding sensitivity to interest rate changes) also had a positive impact on relative return. Finally, exposure to convertible securities added to relative performance, with energy and insurance holdings the leading contributors.

On the downside, an allocation to non-US-dollar-denominated issues had a negative impact on relative performance. Holdings denominated in the New Zealand dollar and Brazilian real were the worst performers within the sector.

Outlook

Our key investment themes are centered on our outlook for steady growth and inflation conditions. While going trade negotiations raise uncertainty about global growth and pose a risk to our outlook, indicators in the United States, including manufacturing activity, business and consumer sentiment, spending, and employment, remain positive for the US economy. This leads us to expect modest improvement in US GDP growth over the next year and relatively stable inflation. Treasury yields have been increasing, and we expect this trend to continue at a modest pace. For this reason, we think it is important to maintain less interest rate sensitivity in the portfolio.

Anticipated central bank action, election cycles, geopolitical risks and trade policy uncertainty have been shaping the risk profile of the global market. We remain highly selective about our non-US exposure and have generally maintained current allocations to selected developed market and emerging market sovereign and credit positions. We believe the US dollar is likely to be range bound or slightly stronger, which could keep the pressure on emerging market assets.

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LOOMIS SAYLES STRATEGIC INCOME FUND

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

Hypothetical Growth of $100,000 Investment in Class Y Shares⁵

September 30, 2008 through September 30, 2018

LOGO

7 |

Average Annual Total Returns — September 30, 2018⁵


													Expense Ratios⁶
	1 Year			5 Years			10 Years			Life of Class N			Gross			Net

Class Y (Inception 12/1/99)
NAV		1.66	%		3.99	%		8.21	%		—	%		0.71	%		0.71	%

Class A (Inception 5/1/95)
NAV		1.34			3.72			7.93			—			0.96			0.96
With 4.25% Maximum Sales Charge		-2.98			2.82			7.46			—

Class C (Inception 5/1/95)
NAV		0.60			2.94			7.13			—			1.71			1.71
With CDSC²		-0.37			2.94			7.13			—

Class N (Inception 2/1/13)
NAV		1.67			4.07			—			4.31			0.63			0.63

Admin Class (Inception 2/1/10)¹
NAV		1.09			3.47			7.65			—			1.19			1.19

Comparative Performance
Bloomberg Barclays U.S. Aggregate Bond Index³		-1.22			2.16			3.77			1.71
Bloomberg Barclays U.S. Universal Bond Index⁴		-1.00			2.53			4.22			2.06

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

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

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

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

The Bloomberg Barclays U.S. Universal Bond Index represents the union of the U.S. Aggregate Index, the U.S. High-Yield Corporate Index, the 144A Index, the Eurodollar Index, the Emerging Markets Index, and the non-ERISA portion of the CMBS Index. Municipal debt, private placements, and non-dollar-denominated issues are excluded from the Universal Bond Index. The only constituent of the index that includes floating-rate debt is the Emerging Markets Index.

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

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense caps set to expire on 1/31/19. When a Fund’s expenses are below the cap, gross and net expense ratios will be the same. See Note 5 of the Notes to Financial Statements for more information about the Fund’s expense caps.

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ADDITIONAL INFORMATION

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

ADDITIONAL INDEX INFORMATION

PROXY VOTING INFORMATION

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

QUARTERLY PORTFOLIO SCHEDULES

9 |

UNDERSTANDING YOUR FUND’S EXPENSES

As a mutual fund shareholder, you incur different types of costs: transaction costs, including sales charges (loads) on purchases and contingent deferred sales charges on redemptions; and ongoing costs, including management fees, distribution fees (12b-1 fees) and/or service fees, and other fund expenses. Certain exemptions may apply. These costs are described in more detail in the 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 for each class of Fund shares shows the actual account values and actual Fund expenses you would have paid on a $1,000 investment in the Fund from April 1, 2018 through September 30, 2018. 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 for each class of Fund shares provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid on your investment for the period. You may use this information to compare the ongoing costs of investing in the Fund to other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

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LOOMIS SAYLES INVESTMENT GRADE BOND FUND	BEGINNING ACCOUNT VALUE 4/1/2018		ENDING ACCOUNT VALUE 9/30/2018		EXPENSES PAID DURING PERIOD* 4/1/2018 – 9/30/2018
Class A
Actual		$1,000.00		$1,000.10		$3.96
Hypothetical (5% return before expenses)		$1,000.00		$1,021.11		$4.00
Class C
Actual		$1,000.00		$996.60		$7.71
Hypothetical (5% return before expenses)		$1,000.00		$1,017.35		$7.79
Class N
Actual		$1,000.00		$1,001.50		$2.36
Hypothetical (5% return before expenses)		$1,000.00		$1,022.71		$2.38
Class Y
Actual		$1,000.00		$1,002.10		$2.71
Hypothetical (5% return before expenses)		$1,000.00		$1,022.36		$2.74
Admin Class
Actual		$1,000.00		$999.60		$5.16
Hypothetical (5% return before expenses)		$1,000.00		$1,019.90		$5.22

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.79%, 1.54%, 0.47%, 0.54% and 1.03% for Class A, C, N, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

11 |


LOOMIS SAYLES STRATEGIC INCOME FUND	BEGINNING ACCOUNT VALUE 4/1/2018		ENDING ACCOUNT VALUE 9/30/2018		EXPENSES PAID DURING PERIOD* 4/1/2018 – 9/30/2018
Class A
Actual		$1,000.00		$1,010.30		$4.84
Hypothetical (5% return before expenses)		$1,000.00		$1,020.26		$4.86
Class C
Actual		$1,000.00		$1,006.80		$8.60
Hypothetical (5% return before expenses)		$1,000.00		$1,016.50		$8.64
Class N
Actual		$1,000.00		$1,012.70		$3.18
Hypothetical (5% return before expenses)		$1,000.00		$1,021.91		$3.19
Class Y
Actual		$1,000.00		$1,012.30		$3.58
Hypothetical (5% return before expenses)		$1,000.00		$1,021.51		$3.60
Admin Class
Actual		$1,000.00		$1,009.10		$6.09
Hypothetical (5% return before expenses)		$1,000.00		$1,019.00		$6.12

Expenses are equal to the Fund’s annualized expense ratio: 0.96%, 1.71%, 0.63%, 0.71% and 1.21% for Class A, C, N, Y and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (183), divided by 365 (to reflect the half-year period).

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BOARD APPROVAL OF THE EXISTING ADVISORY 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’ advisory fees to the fees charged to institutional accounts with similar strategies managed by the Adviser, if any, and to those of peer groups of funds and information about any applicable expense caps and/or fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Adviser and (v) information obtained through the completion by the Adviser of a questionnaire distributed on behalf of the Trustees. The Board, including the Independent Trustees, also considers other matters such as (i) the Adviser’s financial results and financial condition, (ii) each Fund’s investment objective and strategies and the size, education and experience of the Adviser’s investment staff and its use of technology, external research and trading cost measurement tools, (iii) arrangements in respect of the distribution of the Funds’ shares and the related costs, (iv) the allocation of the Funds’ brokerage, if any, including, to the extent applicable, the use of “soft” commission dollars to pay for research and other similar services, (v) 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, (vi) the Adviser’s policies and procedures relating to, among other things, compliance, trading and best execution, proxy voting and valuation, (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.

13 |

The Board most recently approved the continuation of the Agreements for a one year period at its meeting held in June 2018. 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.

| 14

The Board noted that, through December 31, 2017, each Fund’s one-, three- and five-year performance stated as percentile rankings within categories selected by the independent third-party data provider was as follows (where the best performance would be in the first percentile of its category):


	One-Year			Three-Year			Five-Year
Loomis Sayles Investment Grade Bond Fund		3	%		59	%		24	%
Loomis Sayles Strategic Income Fund		30	%		97	%		13	%

In the case of each Fund that had performance that lagged that of a relevant category median as determined by the independent third party 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, although lagging in certain periods, had shown improvement relative to its category; and (3) that the Fund’s performance, although lagging in certain periods, was stronger over the long term.

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 and administrative services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Adviser to comparable accounts (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets and the greater regulatory costs associated with the management of such assets. In evaluating each Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund, as well as the need for the Adviser to offer competitive compensation and the potential need to expend additional resources to the extent the 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

15 |

funds in the fund family. They noted that all of the Funds included have expense caps in place, and they considered the amounts reimbursed by the Adviser for the Loomis Sayles Investment Grade Bond Fund under its cap. The Trustees also considered that the current expenses for Loomis Sayles Strategic Income Fund were below its cap. The Trustees further noted that management had proposed to reduce the expense cap of the Loomis Sayles Investment Grade Bond Fund and that the Loomis Sayles Strategic Income Fund’s total advisory fee rate was below the median of a peer group of funds.

The Trustees noted that the Loomis Sayles Investment Grade Bond Fund had an advisory fee rate that was above the median of a peer group of funds. In this regard, the Trustees considered the factors that management believed justified such relatively higher advisory fee rate, including: (1) that the advisory fee rate was only 1 basis point above the peer group median; and (2) that management had proposed to further reduce the expense cap of the Fund, which had also been reduced last year.

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 caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense 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 had breakpoints in its advisory fee and that each of the Funds was subject to an expense cap. The Trustees considered management’s proposal to reduce the expense cap for Loomis Sayles Investment Grade Bond Fund, which had also been reduced last year. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and on a

| 16

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.

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.

17 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund


Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 55.9% of Net Assets
	Non-Convertible Bonds — 54.1%
		ABS Other — 1.1%
$	51,362,940	FAN Engine Securitization Ltd., Series 2013-1A, Class 1A, 4.625%, 10/15/2043, 144A(a)(b)(c)	$	50,772,266
	10,483,054	Trinity Rail Leasing LLC, Series 2010-1A, Class A, 5.194%, 10/16/2040, 144A		10,880,219
	1,712,484	Trinity Rail Leasing LP, Series 2012-1A, Class A1, 2.266%, 1/15/2043, 144A		1,662,722

				63,315,207

		Aerospace & Defense — 1.9%
	1,865,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		1,890,383
	1,455,000	Embraer Netherlands Finance BV, 5.400%, 2/01/2027		1,484,100
	550,000	Leonardo U.S. Holdings, Inc., 6.250%, 1/15/2040, 144A		574,095
	650,000	Leonardo U.S. Holdings, Inc., 7.375%, 7/15/2039		754,000
	78,795,000	Textron, Inc., 5.950%, 9/21/2021		83,032,108
	11,040,000	Textron, Inc., EMTN, 6.625%, 4/07/2020, (GBP)		15,380,173

				103,114,859

		Airlines — 1.6%
	3,412,100	Air Canada Pass Through Trust, Series 2013-1, Class B, 5.375%, 11/15/2022, 144A		3,484,607
	1,959,407	American Airlines Pass Through Certificates, Series 2016-3, Class B, 3.750%, 4/15/2027		1,891,572
	735,000	American Airlines Pass Through Certificates, Series 2017-2, Class B, 3.700%, 4/15/2027		709,053
	42,049,022	Continental Airlines Pass Through Certificates, Series 2007-1, Class A, 5.983%, 10/19/2023		44,276,779
	1,511,770	Continental Airlines Pass Through Certificates, Series 2012-1, Class B, 6.250%, 10/11/2021		1,548,747
	213,322	Continental Airlines Pass Through Trust, Series 1999-1, Class A, 6.545%, 8/02/2020		215,844
	403,667	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022		424,872
	1,119,507	Delta Air Lines Pass Through Trust, Series 2007-1, Class A, 6.821%, 2/10/2024(a)		1,226,868
	5,973,407	Delta Air Lines Pass Through Trust, Series 2007-1, Class B, 8.021%, 2/10/2024(a)		6,562,386
	10,784,998	Delta Air Lines Pass Through Trust, Series 2009-1, Class A, 7.750%, 6/17/2021		11,247,566
	14,605,319	UAL Pass Through Trust, Series 2007-1, Class A, 6.636%, 1/02/2024		15,280,815
	1,061,219	Virgin Australia Pass Through Certificates, Series 2013-1A, 5.000%, 4/23/2025, 144A		1,082,253

				87,951,362

		Automotive — 0.6%
	23,581,000	Cummins, Inc., 5.650%, 3/01/2098		25,136,167
	5,274,000	Cummins, Inc., 6.750%, 2/15/2027		6,119,457
	255,000	Ford Motor Co., 6.625%, 2/15/2028		269,211
	240,000	Ford Motor Co., 7.500%, 8/01/2026		272,319

See accompanying notes to financial statements.

| 18

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Automotive — continued
$	2,370,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028	$	2,464,800

				34,261,954

		Banking — 8.1%
	1,468,000	Ally Financial, Inc., 8.000%, 11/01/2031		1,778,115
	84,339,000	Bank of America Corp., 6.110%, 1/29/2037		96,994,042
	49,304,000	Bank of America Corp., (fixed rate to 12/20/2027, variable rate thereafter), 3.419%, 12/20/2028		46,276,241
	100,000	Bank of America Corp., MTN, 4.250%, 10/22/2026		98,854
	25,627,000	Bank of America Corp., Series L, MTN, 4.183%, 11/25/2027		25,012,769
	25,090,000	Bank of Nova Scotia (The), 2.130%, 6/15/2020, (CAD)		19,234,987
	17,000,000	Citigroup, Inc., 3.500%, 5/15/2023		16,722,286
	1,660,000	Citigroup, Inc., 4.500%, 1/14/2022		1,706,942
	22,960,000	Citigroup, Inc., 5.130%, 11/12/2019, (NZD)		15,606,208
	22,154,000	Deutsche Bank AG, (fixed rate to 12/01/2027, variable rate thereafter), 4.875%, 12/01/2032		19,684,937
	6,645,000	Goldman Sachs Group, Inc. (The), GMTN, 5.375%, 3/15/2020		6,849,605
	70,245,000	JPMorgan Chase & Co., 4.125%, 12/15/2026		69,727,490
	36,745,000	JPMorgan Chase & Co., 4.250%, 11/02/2018, (NZD)		24,396,416
	100,000	Keybank NA, 6.950%, 2/01/2028		119,084
	3,725,000	Lloyds Banking Group PLC, 4.344%, 1/09/2048		3,238,136
	1,375,000	Lloyds Banking Group PLC, 5.300%, 12/01/2045		1,391,549
	1,845,000	Morgan Stanley, 4.350%, 9/08/2026		1,830,767
	30,000,000	Morgan Stanley, 4.750%, 11/16/2018, (AUD)		21,750,164
	5,900,000	Morgan Stanley, 5.750%, 1/25/2021		6,201,587
	20,695,000	Morgan Stanley, MTN, 4.100%, 5/22/2023		20,823,114
	38,206,000	Morgan Stanley, Series F, GMTN, 5.625%, 9/23/2019		39,156,439
	8,638,000	National City Corp., 6.875%, 5/15/2019		8,860,485

				447,460,217

		Brokerage — 1.5%
	50,270,000	Jefferies Group LLC, 5.125%, 1/20/2023		51,978,104
	19,498,000	Jefferies Group LLC, 6.250%, 1/15/2036		19,721,804
	8,760,000	Jefferies Group LLC, 6.450%, 6/08/2027		9,489,227

				81,189,135

		Building Materials — 0.6%
	1,610,000	Masco Corp., 6.500%, 8/15/2032		1,764,582
	3,110,000	Masco Corp., 7.125%, 3/15/2020		3,266,416
	2,667,000	Masco Corp., 7.750%, 8/01/2029		3,163,516
	23,975,000	Owens Corning, 7.000%, 12/01/2036		27,315,443

				35,509,957

		Cable Satellite — 0.7%
	10,790,000	DISH DBS Corp., 5.000%, 3/15/2023		9,791,925
	17,832,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		14,198,367
	13,630,000	Time Warner Cable LLC, 4.125%, 2/15/2021		13,739,449
	2,800,000	Time Warner Cable LLC, 4.500%, 9/15/2042		2,389,499

				40,119,240

See accompanying notes to financial statements.

19 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Chemicals — 0.9%
$	654,000	Consolidated Energy Finance S.A., 6.500%, 5/15/2026, 144A	$	660,540
	50,500,000	INVISTA Finance LLC, 4.250%, 10/15/2019, 144A		50,436,875

				51,097,415

		Construction Machinery — 0.1%
	6,787,000	Toro Co. (The), 6.625%, 5/01/2037(b)(c)		7,719,993

		Consumer Products — 0.2%
	7,458,000	Hasbro, Inc., 6.600%, 7/15/2028		8,451,253

		Diversified Manufacturing — 0.1%
	5,305,000	General Electric Co., Series A, MTN, 3-month LIBOR + 0.300%, 2.639%, 5/13/2024(d)		5,072,588

		Electric — 1.6%
	23,301,726	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		24,899,967
	30,430,000	EDP Finance BV, 4.125%, 1/15/2020, 144A		30,584,584
	4,491,000	Empresa Nacional de Electricidad S.A., 7.875%, 2/01/2027		5,427,220
	13,025,000	Enel Finance International NV, 6.000%, 10/07/2039, 144A		14,166,093
	9,007,000	Enel Finance International NV, 6.800%, 9/15/2037, 144A		10,406,934
	3,523,869	Mackinaw Power LLC, 6.296%, 10/31/2023, 144A		3,622,335

				89,107,133

		Finance Companies — 4.3%
	6,700,000	Antares Holdings LP, 6.000%, 8/15/2023, 144A		6,726,371
	18,830,000	International Lease Finance Corp., 4.625%, 4/15/2021		19,211,472
	62,425(††)	Navient Corp., 6.000%, 12/15/2043		1,388,072
	3,885,000	Navient Corp., 6.750%, 6/15/2026		3,836,437
	6,730,000	Navient Corp., MTN, 6.125%, 3/25/2024		6,730,000
	90,196,000	Navient LLC, 5.500%, 1/25/2023		89,970,510
	3,280,000	Navient LLC, MTN, 7.250%, 1/25/2022		3,460,400
	22,116,000	Navient LLC, Series A, MTN, 5.625%, 8/01/2033		18,522,150
	7,805,000	Quicken Loans, Inc., 5.250%, 1/15/2028, 144A		7,248,894
	6,820,000	Quicken Loans, Inc., 5.750%, 5/01/2025, 144A		6,811,475
	16,717,000	Springleaf Finance Corp., 5.250%, 12/15/2019		16,946,859
	4,920,000	Springleaf Finance Corp., 6.875%, 3/15/2025		4,907,700
	31,883,000	Springleaf Finance Corp., 7.750%, 10/01/2021		34,393,149
	16,599,000	Springleaf Finance Corp., 8.250%, 10/01/2023		18,300,397

				238,453,886

		Gaming — 0.1%
	3,260,000	International Game Technology PLC, 6.250%, 1/15/2027, 144A		3,300,424

		Government Owned – No Guarantee — 0.8%
	3,720,000	Abu Dhabi National Energy Co. PJSC, 6.500%, 10/27/2036, 144A		4,451,054
	12,575,000	Pertamina Persero PT, 6.450%, 5/30/2044, 144A		13,657,582
	17,435,000	Petrobras Global Finance BV, 4.375%, 5/20/2023		16,559,763
	11,555,000	Petrobras Global Finance BV, 5.625%, 5/20/2043		9,359,550
	1,000,000	Telekom Malaysia Berhad, 7.875%, 8/01/2025, 144A		1,205,747

				45,233,696

See accompanying notes to financial statements.

| 20

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Health Insurance — 0.0%
$	1,261,000	Cigna Corp., 7.875%, 5/15/2027	$	1,552,418

		Healthcare — 0.8%
	7,692,000	Boston Scientific Corp., 6.000%, 1/15/2020		7,960,473
	9,385,000	HCA, Inc., 4.500%, 2/15/2027		9,185,569
	6,175,000	HCA, Inc., 5.375%, 9/01/2026		6,236,750
	4,806,000	HCA, Inc., 7.050%, 12/01/2027		5,154,435
	1,592,000	HCA, Inc., 7.500%, 11/06/2033		1,725,537
	1,295,000	HCA, Inc., 7.690%, 6/15/2025		1,447,162
	2,480,000	HCA, Inc., MTN, 7.580%, 9/15/2025		2,759,000
	3,068,000	HCA, Inc., MTN, 7.750%, 7/15/2036		3,344,120
	1,735,000	Tenet Healthcare Corp., 6.750%, 6/15/2023		1,728,494
	4,785,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		4,283,532

				43,825,072

		Home Construction — 0.2%
	3,990,000	PulteGroup, Inc., 6.000%, 2/15/2035		3,760,575
	3,567,000	PulteGroup, Inc., 6.375%, 5/15/2033		3,424,712
	1,615,000	TRI Pointe Group, Inc./TRI Pointe Homes, Inc., 5.875%, 6/15/2024		1,602,888

				8,788,175

		Independent Energy — 1.3%
	29,185,000	California Resources Corp., 8.000%, 12/15/2022, 144A		27,871,675
	7,335,000	Continental Resources, Inc., 3.800%, 6/01/2024		7,193,155
	9,787,000	EQT Corp., 8.125%, 6/01/2019		10,104,910
	29,027,000	Noble Energy, Inc., 3.900%, 11/15/2024		28,505,950
	400,000	QEP Resources, Inc., 5.250%, 5/01/2023		389,500
	235,000	Vine Oil & Gas LP/Vine Oil & Gas Finance Corp., 8.750%, 4/15/2023, 144A		229,713
	60,000	Whiting Petroleum Corp., 6.250%, 4/01/2023		62,109

				74,357,012

		Integrated Energy — 0.2%
	7,700,000	Reliance Holdings USA, Inc., 5.400%, 2/14/2022, 144A		7,966,695

		Life Insurance — 2.0%
	1,475,000	American International Group, Inc., 4.875%, 6/01/2022		1,537,020
	600,000	AXA S.A., EMTN, (fixed rate to 10/16/2019, variable rate thereafter), 6.772%, (GBP)(e)		813,453
	5,900,000	AXA S.A., EMTN, (fixed rate to 4/16/2020, variable rate thereafter), 5.250%, 4/16/2040, (EUR)		7,322,416
	15,000,000	Global Atlantic Fin Co., 8.625%, 4/15/2021, 144A		16,588,199
	9,063,000	Mutual of Omaha Insurance Co., 6.800%, 6/15/2036, 144A		11,287,736
	26,914,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A(b)(c)		42,965,771
	6,440,000	NLV Financial Corp., 7.500%, 8/15/2033, 144A(b)(c)		7,819,262
	2,872,000	Penn Mutual Life Insurance Co. (The), 6.650%, 6/15/2034, 144A		3,338,887
	14,489,000	Penn Mutual Life Insurance Co. (The), 7.625%, 6/15/2040, 144A		19,081,022

				110,753,766

		Local Authorities — 0.5%
	37,829,000	New South Wales Treasury Corp., 3.500%, 3/20/2019, (AUD)		27,541,162

See accompanying notes to financial statements.

21 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Local Authorities — continued
	489,000	Province of Nova Scotia, 6.600%, 6/01/2027, (CAD)	$	480,716

				28,021,878

		Lodging — 1.0%
	52,516,000	Choice Hotels International, Inc., 5.700%, 8/28/2020		54,616,640

		Media Entertainment — 0.4%
	4,482,000	21st Century Fox America, Inc., 8.150%, 10/17/2036		6,537,251
	358,000,000	Grupo Televisa SAB, EMTN, 7.250%, 5/14/2043, (MXN)		13,549,058
	1,365,000	iHeartCommunications, Inc., 9.000%, 12/15/2019(f)		1,027,163
	3,635,000	iHeartCommunications, Inc., 9.000%, 3/01/2021(f)		2,708,075

				23,821,547

		Metals & Mining — 1.6%
	1,689,997	1839688 Alberta ULC, PIK, 14.000%, 2/13/2020(a)(c)(f)(g)(h)		845
	430,000	ArcelorMittal, 5.500%, 3/01/2021		446,213
	47,920,000	ArcelorMittal, 6.750%, 3/01/2041		54,682,800
	19,365,000	ArcelorMittal, 7.000%, 10/15/2039		22,508,955
	4,612,000	United States Steel Corp., 6.650%, 6/01/2037		4,121,975
	3,655,000	Vale Overseas Ltd., 6.875%, 11/21/2036		4,244,186
	4,893,000	Worthington Industries, Inc., 6.500%, 4/15/2020		5,084,420

				91,089,394

		Midstream — 1.6%
	650,000	DCP Midstream Operating LP, 6.450%, 11/03/2036, 144A		680,875
	525,000	Energy Transfer Partners LP/Regency Energy Finance Corp., 4.500%, 11/01/2023		532,131
	3,328,000	Florida Gas Transmission Co. LLC, 7.900%, 5/15/2019, 144A		3,427,071
	14,300,000	IFM U.S. Colonial Pipeline 2 LLC, 6.450%, 5/01/2021, 144A		15,064,763
	14,660,000	Kinder Morgan Energy Partners LP, 3.500%, 9/01/2023		14,334,212
	3,105,000	Kinder Morgan Energy Partners LP, 5.300%, 9/15/2020		3,214,762
	7,461,000	Kinder Morgan Energy Partners LP, 5.800%, 3/01/2021		7,841,803
	85,000	NGPL PipeCo LLC, 7.768%, 12/15/2037, 144A		104,125
	31,311,000	ONEOK Partners LP, 4.900%, 3/15/2025		32,499,418
	1,404,000	Panhandle Eastern Pipe Line Co. LP, 8.125%, 6/01/2019		1,448,294
	225,000	Plains All American Pipeline LP / PAA Finance Corp., 2.850%, 1/31/2023		213,789
	8,405,000	Williams Cos., Inc., 3.350%, 8/15/2022		8,253,570

				87,614,813

		Mortgage Related — 0.0%
	15,833	FHLMC, 5.000%, 12/01/2031		16,696
	2,052	FNMA, 6.000%, 7/01/2029		2,257

				18,953

		Non-Agency Commercial Mortgage-Backed Securities — 1.0%
	11,095,000	Commercial Mortgage Pass Through Certificates, Series 2014-LC15, Class A2, 2.840%, 4/10/2047		11,092,259
	4,274,460	Commercial Mortgage Pass Through Certificates, Series 2014-UBS2, Class A2, 2.820%, 3/10/2047		4,273,070

See accompanying notes to financial statements.

| 22

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Non-Agency Commercial Mortgage-Backed Securities — continued
$	6,737,114	Commercial Mortgage Pass Through Certificates, Series 2014-UBS4, Class A2, 2.963%, 8/10/2047	$	6,739,033
	1,875,481	Institutional Mortgage Securities Canada, Inc., Series 2014-5A, Class A1, 2.003%, 7/12/2047, 144A, (CAD)		1,449,812
	27,000,000	Institutional Mortgage Securities Canada, Inc., Series 2014-5A, Class A2, 2.616%, 7/12/2047, 144A, (CAD)		20,704,703
	4,495,000	JP Morgan Chase Commercial Mortgage Securities Trust, Series 2014-C20, Class A2, 2.872%, 7/15/2047		4,492,253
	1,943,111	Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C14, Class A2, 2.916%, 2/15/2047		1,942,285
	2,125,000	WFRBS Commercial Mortgage Trust, Series 2011-C3, Class D, 5.865%, 3/15/2044, 144A(i)		1,913,730

				52,607,145

		Oil Field Services — 0.1%
	5,000,000	Nabors Industries, Inc., 5.100%, 9/15/2023		4,768,750

		Paper — 1.4%
	363,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		477,175
	7,049,000	International Paper Co., 8.700%, 6/15/2038		9,751,485
	5,270,000	WestRock MWV LLC, 7.550%, 3/01/2047(b)(c)		6,758,379
	4,273,000	WestRock MWV LLC, 8.200%, 1/15/2030		5,548,949
	26,007,000	Weyerhaeuser Co., 6.875%, 12/15/2033		31,715,830
	7,374,000	Weyerhaeuser Co., 7.375%, 10/01/2019		7,681,677
	13,539,000	Weyerhaeuser Co., 7.375%, 3/15/2032		17,123,700

				79,057,195

		Property & Casualty Insurance — 0.2%
	2,740,000	Fidelity National Financial, Inc., 5.500%, 9/01/2022		2,910,173
	1,889,000	MBIA Insurance Corp., 3-month LIBOR + 11.260%, 13.599%, 1/15/2033, 144A(d)(j)		1,159,374
	5,725,000	Nationstar Mortgage Holdings, Inc., 9.125%, 7/15/2026, 144A		5,996,937
	2,212,000	XLIT Ltd., 6.250%, 5/15/2027		2,508,639

				12,575,123

		Railroads — 0.2%
	9,787,000	Canadian Pacific Railway Co., 7.250%, 5/15/2019		10,054,625

		REITs – Health Care — 0.1%
	5,972,000	Welltower, Inc., 6.500%, 3/15/2041		7,112,130

		REITs – Single Tenant — 0.2%
	8,690,000	Realty Income Corp., 5.750%, 1/15/2021		9,085,914

		Retailers — 0.5%
	1,255,000	Group 1 Automotive, Inc., 5.000%, 6/01/2022		1,248,725
	5,979,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		2,391,600
	5,446,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		2,069,480
	10,467,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		11,245,440
	8,064,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		8,639,781

See accompanying notes to financial statements.

23 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Retailers — continued
$	3,755,000	PVH Corp., 7.750%, 11/15/2023	$	4,280,700

				29,875,726

		Supermarkets — 0.3%
	4,510,000	Albertson’s Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, 6.625%, 6/15/2024		4,335,237
	1,120,000	Koninklijke Ahold Delhaize NV, 5.700%, 10/01/2040		1,217,921
	6,765,000	New Albertsons LP, 7.450%, 8/01/2029		5,581,125
	7,640,000	New Albertsons LP, 8.000%, 5/01/2031		6,494,000
	1,054,000	New Albertsons LP, Series C, MTN, 6.625%, 6/01/2028		798,405

				18,426,688

		Supranational — 0.1%
	9,640,000	European Investment Bank, MTN, 6.000%, 8/06/2020, (AUD)		7,430,054

		Technology — 0.4%
	16,735,000	KLA-Tencor Corp., 5.650%, 11/01/2034		17,739,512
	1,410,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		1,596,712

				19,336,224

		Treasuries — 11.9%
	132,000,000	Canadian Government International Bond, 0.750%, 9/01/2020, (CAD)		99,412,101
	61,795,000	Canadian Government International Bond, 1.750%, 9/01/2019, (CAD)		47,720,389
	391,985,000	Iceland Government International Bond, 7.250%, 10/26/2022, (ISK)		3,218,835
	1,195,394,000	Iceland Government International Bond, 8.750%, 2/26/2019, (ISK)		9,408,399
	2,755,000(†††)	Mexican Fixed Rate Bonds, Series M, 7.750%, 5/29/2031, (MXN)		14,404,348
	2,965,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 7.500%, 6/03/2027, (MXN)		15,416,606
	7,555,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		40,764,057
	1,925,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.500%, 5/31/2029, (MXN)		10,672,054
	23,970,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 10.000%, 12/05/2024, (MXN)		141,960,192
	36,850,000	New Zealand Government Bond, 5.000%, 3/15/2019, (NZD)		24,791,753
	290,574,000	Norway Government Bond, 3.750%, 5/25/2021, 144A, (NOK)		38,005,348
	416,760,000	Norway Government Bond, 4.500%, 5/22/2019, 144A, (NOK)		52,405,736
	43,590,000	Republic of Brazil, 8.500%, 1/05/2024, (BRL)		10,496,657
	23,848,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		6,192,963
	150,000,000	U.S. Treasury Note, 1.250%, 6/30/2019		148,570,313

				663,439,751

		Wireless — 0.7%
	559,910,000	America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)		27,424,340
	58,200,000	America Movil SAB de CV, 8.460%, 12/18/2036, (MXN)		2,721,368
	6,373,000	Sprint Capital Corp., 6.875%, 11/15/2028		6,404,865
	612,000	Sprint Capital Corp., 8.750%, 3/15/2032		688,500
	1,609,000	Sprint Communications, Inc., 6.000%, 11/15/2022		1,641,180
	985,000	Sprint Corp., 7.125%, 6/15/2024		1,021,938

				39,902,191

		Wirelines — 3.2%
	61,415,000	AT&T, Inc., 4.300%, 2/15/2030, 144A		59,062,632
	406,000	Bell Canada, Inc., MTN, 7.300%, 2/23/2032, (CAD)		412,221

See accompanying notes to financial statements.

| 24

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Wirelines — continued
$	2,936,000	BellSouth Telecommunications LLC, 5.850%, 11/15/2045	$	2,940,932
	4,990,000	CenturyLink, Inc., Series G, 6.875%, 1/15/2028		4,790,899
	2,738,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		2,443,665
	2,710,000	CenturyLink, Inc., Series S, 6.450%, 6/15/2021		2,811,625
	195,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		182,325
	14,475,000	Embarq Corp., 7.995%, 6/01/2036		14,475,000
	910,000	Frontier Communications Corp., 7.125%, 1/15/2023		643,825
	265,000	Frontier Communications Corp., 7.875%, 1/15/2027		155,025
	455,000	Frontier Communications Corp., 9.000%, 8/15/2031		288,925
	2,755,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		2,554,711
	4,370,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		4,517,444
	2,694,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		2,502,052
	12,308,000	Qwest Corp., 6.875%, 9/15/2033		12,239,697
	9,077,000	Qwest Corp., 7.250%, 9/15/2025		9,792,652
	2,490,000	Telecom Italia Capital S.A., 6.000%, 9/30/2034		2,371,725
	5,775,000	Telecom Italia Capital S.A., 6.375%, 11/15/2033		5,659,500
	4,100,000	Telefonica Emisiones SAU, EMTN, 5.289%, 12/09/2022, (GBP)		6,016,273
	9,100,000	Telefonica Emisiones SAU, EMTN, 5.375%, 2/02/2026, (GBP)		13,697,373
	31,293,000	Verizon Communications, Inc., 4.329%, 9/21/2028, 144A		31,451,030

				179,009,531

		Total Non-Convertible Bonds (Identified Cost $3,072,836,919)		3,006,465,729


	Convertible Bonds — 1.5%
		Cable Satellite — 0.2%
	9,050,000	DISH Network Corp., 2.375%, 3/15/2024		8,021,323
	6,190,000	DISH Network Corp., 3.375%, 8/15/2026		5,903,811

				13,925,134

		Finance Companies — 0.1%
	3,905,000	Euronet Worldwide, Inc., 1.500%, 10/01/2044		5,437,986

		REITs – Mortgage — 0.2%
	8,710,000	iStar, Inc., 3.125%, 9/15/2022, 144A		8,467,305

		Technology — 1.0%
	46,000,000	Booking Holdings, Inc., 0.900%, 9/15/2021		54,576,608
	337,678	Liberty Interactive LLC, 3.500%, 1/15/2031		438,766

				55,015,374

		Total Convertible Bonds (Identified Cost $71,527,508)		82,845,799


	Municipals — 0.3%
		Illinois — 0.2%
	9,150,000	State of Illinois, 5.100%, 6/01/2033		8,781,712

See accompanying notes to financial statements.

25 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Michigan — 0.0%
$	1,660,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034	$	1,681,630

		Virginia — 0.1%
	7,705,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046		7,637,967

		Total Municipals (Identified Cost $16,412,481)		18,101,309


		Total Bonds and Notes (Identified Cost $3,160,776,908)		3,107,412,837


Shares
	Common Stocks — 0.7%
		Automobiles — 0.7%
	4,063,816	Ford Motor Co. (Identified Cost $34,826,997)		37,590,298


	Preferred Stocks — 0.1%
		Independent Energy — 0.1%
	43,031	Chesapeake Energy Corp., 5.000% (Identified Cost $3,673,619)		2,652,000


Principal Amount (‡)
	Short-Term Investments — 36.0%
$	25,000,000	Federal Home Loan Bank Discount Notes, 1.955%, 10/10/2018(k)		24,986,800
	106,313,572	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/28/2018 at 1.300% to be repurchased at $106,325,089 on 10/01/2018 collateralized by $61,345,000 Federal Home Loan Mortgage Corp., 3.750% due 3/27/2019 valued at $61,745,828; $47,065,000 Federal Home Loan Mortgage Corp., 1.250% due 10/02/2019 valued at $46,696,387 including accrued interest (Note 2 of Notes to Financial Statements)		106,313,572
	125,000,000	U.S. Treasury Bills, 1.969% - 1.985%, 11/01/2018(k)(l)		124,777,995
	300,000,000	U.S. Treasury Bills, 1.995%, 11/08/2018(k)		299,344,500
	25,000,000	U.S. Treasury Bills, 2.030%, 11/15/2018(k)		24,934,961
	200,000,000	U.S. Treasury Bills, 2.060%, 11/29/2018(k)		199,304,292
	267,820,000	U.S. Treasury Bills, 2.075%, 10/18/2018(k)		267,558,522
	400,000,000	U.S. Treasury Bills, 2.080% - 2.086%, 12/06/2018(k)(l)		398,439,832
	350,000,000	U.S. Treasury Bills, 2.118%, 12/20/2018(k)		348,344,304
	32,180,000	U.S. Treasury Bills, 2.140%, 12/27/2018(k)		32,012,604

See accompanying notes to financial statements.

| 26

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund – (continued)


Principal Amount (‡)		Description	Value (†)
	Short-Term Investments — (continued)
$	180,000,000	U.S. Treasury Bills, 2.160% - 2.200%, 04/25/2019(k)(l)	$	177,587,224

		Total Short-Term Investments (Identified Cost $2,003,856,102)		2,003,604,606


		Total Investments — 92.7% (Identified Cost $5,203,133,626)		5,151,259,741
		Other assets less liabilities — 7.3%		407,315,550

		Net Assets — 100.0%	$	5,558,575,291


	(‡)	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)	Level 3 security. Value has been determined using significant unobservable inputs. See Note 3 of Notes to Financial Statements.
	(b)	Securities classified as fair valued pursuant to the Fund’s pricing policies and procedures. At September 30, 2018, the value of these securities amounted to $116,035,671 or 2.1% of net assets. See Note 2 of Notes to Financial Statements.
	(c)	Illiquid security. (Unaudited)
	(d)	Variable rate security. Rate as of September 30, 2018 is disclosed.
	(e)	Perpetual bond with no specified maturity date.
	(f)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
	(g)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional principal.
	(h)	Fair valued by the Fund’s adviser. At September 30, 2018, the value of this security amounted to $845 or less than 0.1% of net assets. See Note 2 of Notes to Financial Statements.
	(i)	Variable rate security. The interest rate adjusts periodically based on; (i) changes in current interest rates and/or prepayments on underlying pools of assets, if applicable, (ii) reference to a base lending rate plus or minus a margin, and/or (iii) reference to a base lending rate adjusted by a multiplier and/or subject to certain floors or caps. Rate as of September 30, 2018 is disclosed.
	(j)	Non-income producing security.
	(k)	Interest rate represents discount rate at time of purchase; not a coupon rate.
	(l)	The Fund’s investment in U.S. Government/Agency securities is comprised of various lots with differing discount rates. These separate investments, which have the same maturity date, 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, 2018, the value of Rule 144A holdings amounted to $635,804,314 or 11.4% of net assets.
	ABS	Asset-Backed Securities
	EMTN	Euro Medium Term Note
	FHLMC	Federal Home Loan Mortgage Corp.

See accompanying notes to financial statements.

27 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Investment Grade Bond Fund – (continued)



	FNMA			Federal National Mortgage Association
	GMTN			Global Medium Term Note
	LIBOR			London Interbank Offered Rate
	MTN			Medium Term Note
	PIK			Payment-in-Kind
	PJSC			Private Joint-Stock Company
	REITs			Real Estate Investment Trusts

	AUD			Australian Dollar
	BRL			Brazilian Real
	CAD			Canadian Dollar
	EUR			Euro
	GBP			British Pound
	ISK			Icelandic Krona
	MXN			Mexican Peso
	NOK			Norwegian Krone
	NZD			New Zealand Dollar

Industry Summary at September 30, 2018


Treasuries	11.9	%
Banking	8.1
Finance Companies	4.4
Wirelines	3.2
Life Insurance	2.0
Other Investments, less than 2% each	27.1
Short-Term Investments	36.0

Total Investments	92.7
Other assets less liabilities	7.3

Net Assets	100.0	%

Currency Exposure Summary at September 30, 2018


United States Dollar	79.2	%
Mexican Peso	4.8
Canadian Dollar	3.7
Other, less than 2% each	5.0

Total Investments	92.7
Other assets less liabilities	7.3

Net Assets	100.0	%

See accompanying notes to financial statements.

| 28

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund


Principal Amount (‡)		Description	Value (†)
	Bonds and Notes — 69.6% of Net Assets
	Non-Convertible Bonds — 63.7%
		ABS Other — 0.3%
$	22,378,976	GCA2014 Holdings Ltd., Series 2014-1, Class C, 6.000%, 1/05/2030, 144A(a)(b)(c)(d)	$	17,108,727
	8,984,885	GCA2014 Holdings Ltd., Series 2014-1, Class D, 7.500%, 1/05/2030, 144A(a)(b)(c)(d)		3,571,492
	42,000,000	GCA2014 Holdings Ltd., Series 2014-1, Class E, Zero Coupon, 1/05/2030, 144A(a)(b)(c)(d)(e)		—
	9,440,756	Global Container Assets Ltd., Series 2015-1A, Class B, 4.500%, 2/05/2030, 144A(d)(f)		8,953,489

				29,633,708

		Aerospace & Defense — 1.0%
	620,000	Bombardier, Inc., 7.350%, 12/22/2026, 144A, (CAD)		492,645
	10,225,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		10,364,162
	3,145,000	Embraer Netherlands Finance BV, 5.400%, 2/01/2027		3,207,900
	9,576,000	Leonardo U.S. Holdings, Inc., 6.250%, 1/15/2040, 144A		9,995,525
	8,815,000	Leonardo U.S. Holdings, Inc., 7.375%, 7/15/2039, 144A		10,225,400
	5,310,000	Textron Financial Corp., 3-month LIBOR + 1.735%, 4.049%, 2/15/2067, 144A(g)		4,632,975
	24,513,000	TransDigm, Inc., 6.500%, 7/15/2024		25,113,568
	17,765,000	TransDigm, Inc., 6.500%, 5/15/2025		18,098,094

				82,130,269

		Airlines — 2.8%
	130,040,000	American Airlines Group, Inc., 5.500%, 10/01/2019, 144A		131,828,050
	10,946,717	American Airlines Pass Through Certificates, Series 2013-1, Class A, 4.000%, 1/15/2027		10,886,401
	1,959,407	American Airlines Pass Through Certificates, Series 2016-3, Class B, 3.750%, 4/15/2027		1,891,572
	1,963,081	Continental Airlines Pass Through Certificates, Series 2012-1, Class B, 6.250%, 10/11/2021		2,011,098
	1,936,054	Continental Airlines Pass Through Certificates, Series 2012-2, Class B, 5.500%, 4/29/2022		1,974,427
	930	Continental Airlines Pass Through Trust, Series 1999-2, Class B, 7.566%, 9/15/2021		973
	240,530	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022		253,166
	445,691	Northwest Airlines, Inc., Series 2002-1, Class G2, (MBIA Insured), 6.264%, 5/20/2023(a)		455,986
	32,758,234	US Airways Pass Through Trust, Series 2011-1B, Class B, 9.750%, 4/22/2020		32,923,008
	4,858,893	US Airways Pass Through Trust, Series 2012-1B, Class B, 8.000%, 4/01/2021		5,065,396
	48,950,000	Virgin Australia Holdings Ltd., 8.500%, 11/15/2019, 144A		49,684,250
	1,464,426	Virgin Australia Pass Through Certificates, Series 2013-1B, 6.000%, 4/23/2022, 144A		1,485,616
	1,032,606	Virgin Australia Pass Through Certificates, Series 2013-1C, 7.125%, 10/23/2018, 144A		1,027,752

				239,487,695

See accompanying notes to financial statements.

29 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Automotive — 0.4%
$	1,210,000	Allison Transmission, Inc., 4.750%, 10/01/2027, 144A	$	1,141,938
	1,220,000	Ford Motor Co., 6.625%, 2/15/2028		1,287,991
	1,345,000	Ford Motor Co., 7.500%, 8/01/2026		1,526,120
	4,795,000	Goodyear Tire & Rubber Co. (The), 4.875%, 3/15/2027		4,405,406
	4,977,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		5,176,080
	26,055,000	Midas Intermediate Holdco II LLC/Midas Intermediate Holdco II Finance, Inc., 7.875%, 10/01/2022, 144A		23,058,675

				36,596,210

		Banking — 4.9%
	6,000,000	Ally Financial, Inc., 8.000%, 11/01/2031		7,267,500
	983,000	Bank of America Corp., (fixed rate to 12/20/2027, variable rate thereafter), 3.419%, 12/20/2028		922,634
	265,000	Bank of America Corp., MTN, 4.250%, 10/22/2026		261,963
	7,045,000	Bank of America Corp., Series L, MTN, 4.183%, 11/25/2027		6,876,145
	10,000,000	Bank of Nova Scotia (The), 2.462%, 3/14/2019, (CAD)		7,754,268
	36,445,000	Citigroup, Inc., 5.130%, 11/12/2019, (NZD)		24,772,136
	3,450,000	Cooperatieve Rabobank UA, 3.950%, 11/09/2022		3,430,387
	2,165,000	Deutsche Bank AG, (fixed rate to 12/01/2027, variable rate thereafter), 4.875%, 12/01/2032		1,923,711
	25,000,000	Goldman Sachs Group, Inc. (The), 3.550%, 2/12/2021, (CAD)		19,549,026
	19,245,000	Intesa Sanpaolo SpA, 5.017%, 6/26/2024, 144A		17,366,411
	45,620,000	JPMorgan Chase & Co., 4.250%, 11/02/2018, (NZD)		30,288,869
	36,195,000	Morgan Stanley, 4.350%, 9/08/2026		35,915,773
	35,325,000	Morgan Stanley, 4.750%, 11/16/2018, (AUD)		25,610,818
	185,000,000	Morgan Stanley, GMTN, 5.000%, 9/30/2021, (AUD)		141,107,912
	46,735,000	Morgan Stanley, MTN, 4.100%, 5/22/2023		47,024,317
	10,000,000	Morgan Stanley, MTN, 6.250%, 8/09/2026		11,241,373
	53,095,000	Morgan Stanley, Series MPLE, 3.125%, 8/05/2021, (CAD)		41,122,368

				422,435,611

		Brokerage — 1.3%
	3,325,000	Jefferies Finance LLC/JFIN Co-Issuer Corp., 6.875%, 4/15/2022, 144A		3,341,625
	1,675,000	Jefferies Finance LLC/JFIN Co-Issuer Corp., 7.250%, 8/15/2024, 144A		1,624,750
	22,540,000	Jefferies Finance LLC/JFIN Co-Issuer Corp., 7.500%, 4/15/2021, 144A		23,047,150
	43,025,000	Jefferies Group LLC, 5.125%, 1/20/2023		44,486,929
	20,010,000	Jefferies Group LLC, 6.250%, 1/15/2036		20,239,681
	15,215,000	Jefferies Group LLC, 6.450%, 6/08/2027		16,481,574

				109,221,709

		Building Materials — 0.3%
	5,565,000	American Woodmark Corp., 4.875%, 3/15/2026, 144A		5,314,575
	1,859,000	Masco Corp., 6.500%, 8/15/2032		2,037,490
	195,000	Masco Corp., 7.125%, 3/15/2020		204,807
	1,226,000	Masco Corp., 7.750%, 8/01/2029		1,454,245
	10,800,000	Owens Corning, 7.000%, 12/01/2036		12,304,767

				21,315,884

See accompanying notes to financial statements.

| 30

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Cable Satellite — 1.3%
$	850,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.125%, 5/01/2023, 144A	$	851,318
	975,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.375%, 5/01/2025, 144A		967,687
	3,315,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.750%, 1/15/2024		3,368,869
	4,360,000	CCO Holdings LLC/CCO Holdings Capital Corp., 5.875%, 5/01/2027, 144A		4,321,850
	17,880,000	CSC Holdings LLC, 5.375%, 2/01/2028, 144A		17,030,700
	17,679,000	DISH DBS Corp., 5.875%, 11/15/2024		15,844,804
	25,270,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		20,120,723
	4,835,000	Time Warner Cable LLC, 4.500%, 9/15/2042		4,126,153
	135,000	Time Warner Cable LLC, 5.875%, 11/15/2040		136,298
	11,275,000	Videotron Ltd., 5.625%, 6/15/2025, 144A, (CAD)		9,016,246
	7,000,000	Virgin Media Finance PLC, 6.000%, 10/15/2024, 144A		7,004,760
	20,300,000	VTR Finance BV, 6.875%, 1/15/2024, 144A		20,655,250
	5,165,000	Ziggo BV, 5.500%, 1/15/2027, 144A		4,846,061

				108,290,719

		Chemicals — 2.0%
	19,810,000	Aruba Investments, Inc., 8.750%, 2/15/2023, 144A		20,602,400
	3,416,000	Chemours Co. (The), 6.625%, 5/15/2023		3,568,319
	18,254,000	Consolidated Energy Finance S.A., 6.500%, 5/15/2026, 144A		18,436,540
	26,164,000	Hexion, Inc., 7.875%, 2/15/2023(d)(f)		20,931,200
	8,757,000	Hexion, Inc., 9.200%, 3/15/2021(d)(f)		7,093,170
	16,660,000	Hexion, Inc./Hexion Nova Scotia Finance ULC, 9.000%, 11/15/2020		13,841,628
	90,205,000	INVISTA Finance LLC, 4.250%, 10/15/2019, 144A		90,092,244
	885,000	TPC Group, Inc., 8.750%, 12/15/2020, 144A		882,787

				175,448,288

		Construction Machinery — 0.1%
	1,310,000	United Rentals North America, Inc., 4.875%, 1/15/2028		1,228,125
	5,105,000	United Rentals North America, Inc., 5.750%, 11/15/2024		5,252,024

				6,480,149

		Consumer Cyclical Services — 0.1%
	5,500,000	ServiceMaster Co. LLC (The), 7.450%, 8/15/2027		5,781,875

		Consumer Products — 0.1%
	11,880,000	Avon Products, Inc., 8.950%, 3/15/2043		10,632,600

		Electric — 1.0%
	5,093,000	AES Corp. (The), 4.875%, 5/15/2023		5,137,564
	9,371,000	AES Corp. (The), 5.500%, 4/15/2025		9,597,591
	31,888,312	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		34,075,497
	29,959,000	EDP Finance BV, 4.125%, 1/15/2020, 144A		30,111,192
	3,570,000	Empresa Nacional de Electricidad S.A., 7.875%, 2/01/2027		4,314,222
	5,991,000	Vistra Energy Corp., 7.625%, 11/01/2024		6,447,814

				89,683,880

		Finance Companies — 3.4%
	9,075,000	iStar, Inc., 5.000%, 7/01/2019		9,090,201
	2,260,000	Navient Corp., 5.875%, 10/25/2024		2,214,800
	109,950(††)	Navient Corp., 6.000%, 12/15/2043		2,444,830

See accompanying notes to financial statements.

31 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Finance Companies — continued
$	30,265,000	Navient Corp., MTN, 6.125%, 3/25/2024	$	30,265,000
	22,945,000	Navient LLC, 5.500%, 1/25/2023		22,887,638
	7,780,000	Navient LLC, MTN, 5.500%, 1/15/2019		7,818,900
	6,490,000	Navient LLC, MTN, 7.250%, 1/25/2022		6,846,950
	50,910,000	Navient LLC, Series A, MTN, 5.625%, 8/01/2033		42,637,125
	45,875,000	Springleaf Finance Corp., 5.250%, 12/15/2019		46,505,781
	23,115,000	Springleaf Finance Corp., 6.875%, 3/15/2025		23,057,212
	4,075,000	Springleaf Finance Corp., 7.125%, 3/15/2026		4,054,625
	26,970,000	Springleaf Finance Corp., 7.750%, 10/01/2021		29,093,348
	55,015,000	Springleaf Finance Corp., 8.250%, 10/01/2023		60,654,037

				287,570,447

		Gaming — 0.1%
	5,475,000	International Game Technology PLC, 6.250%, 1/15/2027, 144A		5,542,890

		Government Owned – No Guarantee — 0.8%
	22,160,000	Pertamina Persero PT, 6.450%, 5/30/2044, 144A		24,067,754
	21,145,000	Petrobras Global Finance BV, 4.375%, 5/20/2023		20,083,521
	30,955,000	Petrobras Global Finance BV, 5.625%, 5/20/2043		25,073,550

				69,224,825

		Healthcare — 3.2%
	40,686,000	HCA, Inc., 5.875%, 5/01/2023		42,923,730
	14,620,000	HCA, Inc., 7.050%, 12/01/2027		15,679,950
	20,447,000	HCA, Inc., 7.500%, 12/15/2023		22,491,700
	24,215,000	HCA, Inc., 7.500%, 11/06/2033		26,246,154
	14,056,000	HCA, Inc., 7.690%, 6/15/2025		15,707,580
	32,745,000	HCA, Inc., 8.360%, 4/15/2024		37,247,437
	10,815,000	HCA, Inc., MTN, 7.580%, 9/15/2025		12,031,688
	9,492,000	HCA, Inc., MTN, 7.750%, 7/15/2036		10,346,280
	955,000	Tenet Healthcare Corp., 4.375%, 10/01/2021		950,865
	18,365,000	Tenet Healthcare Corp., 5.125%, 5/01/2025		18,089,525
	37,980,000	Tenet Healthcare Corp., 6.750%, 6/15/2023		37,837,575
	35,329,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		31,626,521
	1,015,000	Tenet Healthcare Corp., 7.500%, 1/01/2022, 144A		1,059,406
	990,000	Tenet Healthcare Corp., 8.125%, 4/01/2022		1,043,262

				273,281,673

		Home Construction — 0.9%
	151,000	Beazer Homes USA, Inc., 7.250%, 2/01/2023		148,735
	13,360,000	K. Hovnanian Enterprises, Inc., 5.000%, 11/01/2021		11,935,423
	47,260,000	PulteGroup, Inc., 6.000%, 2/15/2035		44,542,550
	13,190,000	PulteGroup, Inc., 6.375%, 5/15/2033		12,663,851
	10,305,000	TRI Pointe Group, Inc./TRI Pointe Homes, Inc., 4.375%, 6/15/2019		10,356,525
	195,000	TRI Pointe Group, Inc./TRI Pointe Homes, Inc., 5.875%, 6/15/2024		193,538

				79,840,622

		Independent Energy — 4.3%
	595,000	Anadarko Petroleum Corp., 3.450%, 7/15/2024		572,757
	540,000	Anadarko Petroleum Corp., 4.500%, 7/15/2044		494,602

See accompanying notes to financial statements.

| 32

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Independent Energy — continued
$	4,810,000	Antero Resources Corp., 5.625%, 6/01/2023	$	4,924,237
	18,736,000	Ascent Resources Utica Holdings LLC/ARU Finance Corp., 10.000%, 4/01/2022, 144A		21,078,000
	8,145,000	Baytex Energy Corp., 5.125%, 6/01/2021, 144A		8,022,825
	8,225,000	Baytex Energy Corp., 5.625%, 6/01/2024, 144A		7,854,875
	17,375,000	Bellatrix Exploration Ltd., 8.500%, 5/15/2020, 144A(d)(f)		10,642,187
	8,645,000	California Resources Corp., 5.500%, 9/15/2021		7,962,909
	1,188,000	California Resources Corp., 6.000%, 11/15/2024		1,009,800
	50,620,000	California Resources Corp., 8.000%, 12/15/2022, 144A		48,342,100
	1,310,000	Chesapeake Energy Corp., 4.875%, 4/15/2022		1,272,338
	55,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		57,613
	21,335,000	Chesapeake Energy Corp., 8.000%, 1/15/2025		22,001,719
	39,020,000	Chesapeake Energy Corp., 8.000%, 6/15/2027		39,800,400
	15,215,000	Continental Resources, Inc., 3.800%, 6/01/2024		14,920,771
	5,450,000	Continental Resources, Inc., 4.500%, 4/15/2023		5,545,931
	440,000	Continental Resources, Inc., 5.000%, 9/15/2022		446,380
	19,290,000	Eclipse Resources Corp., 8.875%, 7/15/2023		19,627,575
	1,567,000	Halcon Resources Corp., 6.750%, 2/15/2025		1,504,320
	15,580,000	Lonestar Resources America, Inc., 11.250%, 1/01/2023, 144A		17,099,050
	180,000	MEG Energy Corp., 6.375%, 1/30/2023, 144A		163,800
	12,740,000	MEG Energy Corp., 7.000%, 3/31/2024, 144A		11,625,250
	1,065,000	Oasis Petroleum, Inc., 6.875%, 1/15/2023		1,083,638
	7,170,000	Pan American Energy LLC/Argentine Branch, 7.875%, 5/07/2021, 144A		7,296,909
	2,055,000	QEP Resources, Inc., 5.250%, 5/01/2023		2,001,056
	18,400,000	Rex Energy Corp., 8.000%, 10/01/2020(h)		4,968,000
	17,908,000	Sanchez Energy Corp., 6.125%, 1/15/2023		10,207,560
	9,520,000	Sanchez Energy Corp., 7.750%, 6/15/2021		6,664,000
	8,241,000	SM Energy Co., 5.000%, 1/15/2024		8,024,674
	15,904,000	SM Energy Co., 6.125%, 11/15/2022		16,381,120
	1,110,000	Southwestern Energy Co., 6.200%, 1/23/2025		1,101,675
	14,955,000	Vine Oil & Gas LP/Vine Oil & Gas Finance Corp., 8.750%, 4/15/2023, 144A		14,618,512
	19,960,000	Whiting Petroleum Corp., 5.750%, 3/15/2021		20,459,000
	3,550,000	Whiting Petroleum Corp., 6.250%, 4/01/2023		3,674,782
	21,785,000	Whiting Petroleum Corp., 6.625%, 1/15/2026		22,656,400

				364,106,765

		Life Insurance — 0.7%
	15,000,000	Global Atlantic Fin Co., 8.625%, 4/15/2021, 144A		16,588,199
	20,000,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A(d)(f)		31,928,194
	8,920,000	NLV Financial Corp., 7.500%, 8/15/2033, 144A(d)(f)		10,830,407

				59,346,800

		Local Authorities — 0.8%
	95,480,000	New South Wales Treasury Corp., 4.000%, 4/08/2021, (AUD)		72,043,034

		Media Entertainment — 1.2%
	1,000,000	Clear Channel Worldwide Holdings, Inc., Series B, 7.625%, 3/15/2020		1,002,500
	111,590,000	Grupo Televisa SAB, EMTN, 7.250%, 5/14/2043, (MXN)		4,223,295
	16,770,000	iHeartCommunications, Inc., 9.000%, 12/15/2019(h)		12,619,425

See accompanying notes to financial statements.

33 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Media Entertainment — continued
$	47,480,000	iHeartCommunications, Inc., 9.000%, 3/01/2021(h)	$	35,372,600
	33,370,000	iHeartCommunications, Inc., 9.000%, 9/15/2022(h)		25,152,637
	7,180,000	Outfront Media Capital LLC/Outfront Media Capital Corp., 5.250%, 2/15/2022		7,269,750
	17,950,000	Outfront Media Capital LLC/Outfront Media Capital Corp., 5.875%, 3/15/2025		18,129,500

				103,769,707

		Metals & Mining — 1.1%
	8,202,122	1839688 Alberta ULC, PIK, 14.000%, 2/13/2020(a)(b)(d)(h)(i)		4,101
	2,000,000	AK Steel Corp., 7.625%, 10/01/2021		2,037,500
	25,271,000	ArcelorMittal, 6.750%, 3/01/2041		28,837,418
	8,705,000	Barrick North America Finance LLC, 5.750%, 5/01/2043		9,664,273
	12,315,000	First Quantum Minerals Ltd., 7.250%, 5/15/2022, 144A		12,053,306
	1,810,000	First Quantum Minerals Ltd., 7.500%, 4/01/2025, 144A		1,717,238
	16,135,000	Russel Metals, Inc., 6.000%, 4/19/2022, 144A, (CAD)		12,647,921
	11,719,000	United States Steel Corp., 6.650%, 6/01/2037		10,473,856
	2,655,000	United States Steel Corp., 7.375%, 4/01/2020		2,777,794
	10,000,000	Worthington Industries, Inc., 6.500%, 4/15/2020		10,391,212

				90,604,619

		Midstream — 0.5%
	8,935,000	IFM U.S. Colonial Pipeline 2 LLC, 6.450%, 5/01/2021, 144A		9,412,843
	13,667,000	NGL Energy Partners LP/NGL Energy Finance Corp., 6.125%, 3/01/2025		12,812,813
	882,000	NGL Energy Partners LP/NGL Energy Finance Corp., 6.875%, 10/15/2021		898,493
	8,125,000	NGL Energy Partners LP/NGL Energy Finance Corp., 7.500%, 11/01/2023		8,125,000
	505,000	NGPL PipeCo LLC, 7.768%, 12/15/2037, 144A		618,625
	11,820,000	Summit Midstream Partners LP, Series A, (fixed rate to 12/15/2022, variable rate thereafter), 9.500%(j)		11,738,915

				43,606,689

		Non-Agency Commercial Mortgage-Backed Securities — 0.1%
	2,317,295	GS Mortgage Securities Trust, Series 2007-GG10, Class AM, 5.977%, 8/10/2045(k)		2,347,852
	3,442,205	Institutional Mortgage Securities Canada, Inc., Series 2014-5A, Class A1, 2.003%, 7/12/2047, 144A, (CAD)		2,660,943

				5,008,795

		Oil Field Services — 2.6%
	11,165,000	Ensco PLC, 7.750%, 2/01/2026		11,081,263
	7,120,000	Global Marine, Inc., 7.000%, 6/01/2028		7,155,600
	12,610,000	Noble Holding International Ltd., 7.750%, 1/15/2024		12,515,425
	19,385,000	Noble Holding International Ltd., 7.875%, 2/01/2026, 144A		20,111,937
	18,385,000	Pioneer Energy Services Corp., 6.125%, 3/15/2022		16,151,958
	12,020,000	Precision Drilling Corp., 5.250%, 11/15/2024		11,527,180
	474,543	Precision Drilling Corp., 6.500%, 12/15/2021		481,661
	2,080,000	Shelf Drilling Holdings Ltd., 8.250%, 2/15/2025, 144A		2,145,000
	75,824,250	Transocean Proteus Ltd., 6.250%, 12/01/2024, 144A		77,151,174
	39,300,000	Transocean, Inc., 5.800%, 10/15/2022		39,152,625
	28,580,000	Transocean, Inc., 6.800%, 3/15/2038		24,721,700

				222,195,523

See accompanying notes to financial statements.

| 34

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Paper — 0.5%
$	15,225,000	Georgia-Pacific LLC, 7.750%, 11/15/2029	$	20,013,757
	4,865,000	WestRock MWV LLC, 7.950%, 2/15/2031		6,281,614
	8,750,000	WestRock MWV LLC, 8.200%, 1/15/2030		11,362,814
	2,840,000	Weyerhaeuser Co., 6.950%, 10/01/2027		3,330,036

				40,988,221

		Property & Casualty Insurance — 0.6%
	12,510,000	MBIA Insurance Corp., 3-month LIBOR + 11.260%, 13.599%, 1/15/2033, 144A(e)(g)		7,678,013
	25,465,000	Nationstar Mortgage Holdings, Inc., 9.125%, 7/15/2026, 144A		26,674,587
	17,870,000	XL Group PLC, 3-month LIBOR + 2.458%, 4.797%(g)(j)		17,613,119

				51,965,719

		Retailers — 0.7%
	3,325,000	Dillard’s, Inc., 7.000%, 12/01/2028		3,487,160
	1,500,000	Dillard’s, Inc., 7.750%, 7/15/2026		1,655,955
	5,110,000	Foot Locker, Inc., 8.500%, 1/15/2022		5,761,525
	7,000	J.C. Penney Corp., Inc., 5.650%, 6/01/2020		6,265
	27,224,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		10,889,600
	2,510,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		953,800
	12,275,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		13,187,903
	6,365,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		6,819,470
	17,163,000	TRU Taj LLC/TRU Taj Finance, Inc., 11.000%, 1/22/2019, 144A		17,578,344

				60,340,022

		Supermarkets — 1.9%
	11,495,000	Albertson’s Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, 5.750%, 3/15/2025		10,345,500
	9,465,000	Albertson’s Cos. LLC/Safeway, Inc./New Albertson’s, Inc./Albertson’s LLC, 6.625%, 6/15/2024		9,098,231
	87,475,000	New Albertsons LP, 7.450%, 8/01/2029		72,166,875
	25,595,000	New Albertsons LP, 7.750%, 6/15/2026		22,324,983
	28,915,000	New Albertsons LP, 8.000%, 5/01/2031		24,577,750
	9,390,000	New Albertsons LP, 8.700%, 5/01/2030		8,286,675
	18,387,000	New Albertsons LP, Series C, MTN, 6.625%, 6/01/2028		13,928,153
	2,290,000	Safeway, Inc., 7.250%, 2/01/2031		2,181,225

				162,909,392

		Technology — 1.1%
	4,537,000	Advanced Micro Devices, Inc., 7.000%, 7/01/2024		4,786,535
	17,060,000	Amkor Technology, Inc., 6.375%, 10/01/2022		17,361,962
	56,340,000	KLA-Tencor Corp., 4.650%, 11/01/2024		57,731,788
	15,170,000	KLA-Tencor Corp., 5.650%, 11/01/2034		16,080,573
	150,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		169,863

				96,130,721

		Transportation Services — 0.1%
	10,503,000	APL Ltd., 8.000%, 1/15/2024(d)(f)		9,452,700

See accompanying notes to financial statements.

35 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Treasuries — 18.4%
	312,000,000	Canadian Government International Bond, 0.750%, 9/01/2020, (CAD)	$	234,974,056
	80,645,000	Canadian Government International Bond, 1.750%, 9/01/2019, (CAD)		62,277,058
	1,010,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2024, (EUR)(l)		1,162,209
	1,100,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2035, (EUR)(l)		1,099,147
	4,000,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2036, (EUR)(l)		3,947,934
	4,455,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2037, (EUR)(l)		4,359,257
	5,820,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2038, (EUR)(l)		5,641,769
	4,000,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2039, (EUR)(l)		3,872,178
	4,680,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2040, (EUR)(l)		4,513,859
	5,970,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2041, (EUR)(l)		5,767,012
	4,000,000	Hellenic Republic Government Bond, Series PSI, (Step to 3.650% on 2/24/2020), 3.000%, 2/24/2042, (EUR)(l)		3,874,843
	1,605,660,000	Iceland Government International Bond, 7.250%, 10/26/2022, (ISK)		13,185,082
	4,496,156,000	Iceland Government International Bond, 8.750%, 2/26/2019, (ISK)		35,387,188
	10,000,000(†††)	Mexican Fixed Rate Bonds, Series M, 5.750%, 3/05/2026, (MXN)		47,130,491
	9,930,439(†††)	Mexican Fixed Rate Bonds, Series M, 6.500%, 6/10/2021, (MXN)		51,444,705
	4,250,000(†††)	Mexican Fixed Rate Bonds, Series M, 7.750%, 5/29/2031, (MXN)		22,220,864
	7,740,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 7.500%, 6/03/2027, (MXN)		40,244,360
	27,224,481(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		146,893,489
	3,035,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.500%, 5/31/2029, (MXN)		16,825,810
	21,700,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 10.000%, 12/05/2024, (MXN)		128,516,319
	252,700,000	New Zealand Government Bond, 5.000%, 3/15/2019, (NZD)		170,010,199
	175,365,000	New Zealand Government Bond, 6.000%, 5/15/2021, (NZD)		128,738,536
	458,725,000	Norway Government Bond, 3.750%, 5/25/2021, 144A, (NOK)		59,998,496
	658,049,000	Norway Government Bond, 4.500%, 5/22/2019, 144A, (NOK)		82,746,766
	162,850,000	Republic of Brazil, 8.500%, 1/05/2024, (BRL)		39,214,972
	55,925,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		14,522,872
	250,000,000	U.S. Treasury Note, 1.000%, 11/30/2018		249,523,303

				1,578,092,774

		Wireless — 1.3%
	293,000,000	America Movil SAB de CV, 6.450%, 12/05/2022, (MXN)		14,351,113
	134,600,000	America Movil SAB de CV, 8.460%, 12/18/2036, (MXN)		6,293,748
	49,955,000	Sprint Capital Corp., 6.875%, 11/15/2028		50,204,775	��
	6,260,000	Sprint Capital Corp., 8.750%, 3/15/2032		7,042,500
	21,052,000	Sprint Communications, Inc., 6.000%, 11/15/2022		21,473,040
	8,200,000	Sprint Corp., 7.125%, 6/15/2024		8,507,500
	4,727,000	Sprint Corp., 7.250%, 9/15/2021		4,998,802

				112,871,478

See accompanying notes to financial statements.

| 36

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Wirelines — 3.8%
	4,370,000	Bell Canada, Inc., MTN, 6.550%, 5/01/2029, 144A, (CAD)	$	4,096,091
	7,545,000	Bell Canada, Inc., Series M-17, 6.100%, 3/16/2035, (CAD)		7,068,987
	1,240,000	CenturyLink, Inc., 5.625%, 4/01/2025		1,212,472
	7,410,000	CenturyLink, Inc., Series G, 6.875%, 1/15/2028		7,114,341
	1,800,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		1,606,500
	28,385,000	CenturyLink, Inc., Series S, 6.450%, 6/15/2021		29,449,437
	7,940,000	CenturyLink, Inc., Series W, 6.750%, 12/01/2023		8,247,675
	350,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		327,250
	3,620,000	Cincinnati Bell, Inc., 7.000%, 7/15/2024, 144A		3,321,350
	22,335,000	Cincinnati Bell, Inc., 8.000%, 10/15/2025, 144A		20,827,387
	8,581,000	Consolidated Communications, Inc., 6.500%, 10/01/2022		8,109,045
	3,200,000	Embarq Corp., 7.995%, 6/01/2036		3,200,000
	18,725,000	Frontier Communications Corp., 6.875%, 1/15/2025		11,381,617
	38,336,000	Frontier Communications Corp., 7.875%, 1/15/2027		22,426,560
	25,745,000	Level 3 Parent LLC, 5.750%, 12/01/2022		26,039,780
	42,460,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		39,373,158
	12,463,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		12,883,502
	25,945,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		24,096,419
	26,401,000	Qwest Corp., 6.875%, 9/15/2033		26,254,488
	30,646,000	Telecom Italia Capital S.A., 6.000%, 9/30/2034		29,190,315
	16,440,000	Telecom Italia Capital S.A., 6.375%, 11/15/2033		16,111,200
	14,223,000	Verizon Communications, Inc., 4.329%, 9/21/2028, 144A		14,294,826
	6,309,000	Windstream Services LLC/Windstream Finance Corp., 9.000%, 6/30/2025, 144A		4,873,703
	8,865,000	Windstream Services LLC/Windstream Finance Corp., 10.500%, 6/30/2024, 144A		7,535,250

				329,041,353

		Total Non-Convertible Bonds (Identified Cost $5,919,807,058)		5,455,073,366


	Convertible Bonds — 4.3%
		Building Materials — 0.2%
	16,682,000	KB Home, 1.375%, 2/01/2019		16,929,377

		Cable Satellite — 1.7%
	14,660,000	DISH Network Corp., 2.375%, 3/15/2024		12,993,656
	138,515,000	DISH Network Corp., 3.375%, 8/15/2026		132,110,898

				145,104,554

		Chemicals — 0.1%
	4,135,000	RPM International, Inc., 2.250%, 12/15/2020		5,091,012

		Healthcare — 0.1%
	8,835,000	Evolent Health, Inc., 2.000%, 12/01/2021		11,868,206

		Independent Energy — 0.4%
	31,000,000	Chesapeake Energy Corp., 5.500%, 9/15/2026		30,620,157
	6,625,000	Whiting Petroleum Corp., 1.250%, 4/01/2020		6,353,713

				36,973,870

See accompanying notes to financial statements.

37 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
		Leisure — 0.3%
$	27,795,000	Rovi Corp., 0.500%, 3/01/2020	$	26,213,743

		Midstream — 0.1%
	10,955,000	SM Energy Co., 1.500%, 7/01/2021		11,991,255

		Pharmaceuticals — 0.0%
	1,655,000	BioMarin Pharmaceutical, Inc., 1.500%, 10/15/2020		1,985,343

		REITs – Mortgage — 0.2%
	14,245,000	iStar, Inc., 3.125%, 9/15/2022, 144A		13,848,077

		Technology — 1.2%
	10,415,000	Booking Holdings, Inc., 0.900%, 9/15/2021		12,356,856
	5,009,424	Liberty Interactive LLC, 3.500%, 1/15/2031		6,509,055
	23,990,000	Nuance Communications, Inc., 1.000%, 12/15/2035		22,642,481
	11,265,000	Nuance Communications, Inc., 1.250%, 4/01/2025		11,634,267
	39,710,000	Nuance Communications, Inc., 1.500%, 11/01/2035		40,235,006
	5,205,000	Western Digital Corp., 1.500%, 2/01/2024, 144A		4,816,556

				98,194,221

		Total Convertible Bonds (Identified Cost $365,365,365)		368,199,658


	Municipals — 1.6%
		District of Columbia — 0.1%
	3,850,000	Metropolitan Washington Airports Authority, Series D, 8.000%, 10/01/2047		5,206,971

		Illinois — 0.2%
	17,570,000	State of Illinois, 5.100%, 6/01/2033		16,862,808

		Michigan — 0.1%
	8,930,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034		9,046,358

		Puerto Rico — 0.4%
	63,900,000	Commonwealth of Puerto Rico, GO, Refunding, Series A, 8.000%, 7/01/2035(h)		36,982,125

		Virginia — 0.8%
	69,695,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046		69,088,653

		Total Municipals (Identified Cost $150,510,547)		137,186,915


		Total Bonds and Notes (Identified Cost $6,435,682,970)		5,960,459,939


	Loan Participations — 0.1%
		ABS Other — 0.1%
	8,736,971	Rise Ltd., Series 2014-1, Class B, 6.500%, 2/15/2039 (a)(k) (Identified Cost $8,802,498)		8,343,807

See accompanying notes to financial statements.

| 38

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Principal Amount (‡)		Description	Value (†)
	Senior Loans — 1.1%
		Chemicals — 0.4%
$	31,355,000	Houghton International, Inc., New 2nd Lien Term Loan, 1-month LIBOR + 8.500%, 10.742%, 12/20/2020(g)	$	31,315,806

		Construction Machinery — 0.4%
	21,276,992	Onsite Rental Group Pty Ltd., Notes, 6.100%, 10/26/2023, 144A(c)(d)(f)		16,383,284
	15,562,263	Onsite Rental Group Pty Ltd., Term Loan B, 1-month LIBOR + 4.500%, 6.716%, 10/26/2022(g)		15,251,017

				31,634,301

		Financial Other — 0.2%
	12,682,801	DBRS Ltd., Term Loan, 3-month LIBOR + 5.250%, 7.563%, 3/04/2022(g)		12,698,654

		Natural Gas — 0.0%
	1,531,886	Southcross Holdings Borrower LP, Exit Term Loan B, 5.500% PIK, 3.500% Cash, 4/13/2023(m)		1,424,654

		Oil Field Services — 0.0%
	2,858,066	Petroleum Geo-Services ASA, New Term Loan B, 3-month LIBOR + 2.500%, 4.886%, 3/19/2021(g)		2,759,835

		Retailers — 0.0%
	2,614,748	Toys “R” Us Property Co. I LLC, New Term Loan B, 1-month LIBOR + 5.000%, 7.242%, 8/21/2019(g)(h)		2,244,316

		Technology — 0.1%
	9,507,380	IQOR U.S., Inc., 2nd Lien Term Loan, 3-month LIBOR + 8.750%, 11.087%, 4/01/2022(g)		7,244,624

		Transportation Services — 0.0%
	2,918,811	OSG Bulk Ships, Inc., OBS Term Loan, 3-month LIBOR + 4.250%, 6.770%, 8/05/2019(g)		2,887,813

		Total Senior Loans (Identified Cost $100,408,252)		92,210,003


Shares
	Common Stocks — 5.3%
		Aerospace & Defense — 0.4%
	1,423,650	Arconic, Inc.		31,334,536

		Diversified Telecommunication Services — 0.0%
	145,667	Cincinnati Bell, Inc.(e)		2,323,389

		Media — 0.0%
	303,043	Dex Media, Inc.(c)(e)		3,181,952

		Oil, Gas & Consumable Fuels — 0.2%
	1,514	Southcross Holdings LP, Class A(c)(e)		340,650
	1,514	Southcross Holdings Group LLC(c)(e)		—
	225,503	Paragon Offshore Ltd., Litigation Units, Class B(c)(e)		8,738,241
	156,902	Paragon Offshore Ltd., Litigation Units, Class A(c)(e)		126,777
	5,886	Frontera Energy Corp.(e)		83,210
	846,398	Chesapeake Energy Corp.(e)		3,800,327

				13,089,205

See accompanying notes to financial statements.

39 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Shares		Description	Value (†)
		Pharmaceuticals — 4.7%
	6,514,190	Bristol-Myers Squibb Co.	$	404,400,915

		Specialty Retail — 0.0%
	11,662,687	Onsite Rental Group Pty Ltd.(a)(b)(c)(d)(e)		—

		Total Common Stocks (Identified Cost $248,231,757)		454,329,997


	Preferred Stocks — 1.8%
	Convertible Preferred Stocks — 1.7%
		Banking — 0.3%
	19,062	Bank of America Corp., Series L, 7.250%		24,670,994

		Communications — 0.0%
	10,483	Cincinnati Bell, Inc., Series B, 6.750%		513,772

		Energy — 0.1%
	242,297	El Paso Energy Capital Trust I, 4.750%		11,385,536

		Independent Energy — 0.5%
	172,972	Chesapeake Energy Corp., 4.500%		9,323,191
	231,033	Chesapeake Energy Corp., 5.000%		14,238,564
	32,522	Chesapeake Energy Corp., Series A, 5.750%, 144A		19,475,035

				43,036,790

		Midstream — 0.5%
	18,957	Chesapeake Energy Corp., 5.750%		11,351,954
	43,178	Chesapeake Energy Corp., 5.750%, 144A		27,162,852
	6,017	Chesapeake Energy Corp., 5.750%		3,785,235

				42,300,041

		REITs – Health Care — 0.1%
	116,700	Welltower, Inc., Series I, 6.500%		7,062,684

		REITs – Mortgage — 0.2%
	325,207	iStar, Inc., Series J, 4.500%		15,437,576

		Total Convertible Preferred Stocks (Identified Cost $165,100,758)		144,407,393


	Non-Convertible Preferred Stocks — 0.1%
		Finance Companies — 0.0%
	10,425	iStar, Inc., Series G, 7.650%		253,432

		Home Construction — 0.0%
	208,246	Hovnanian Enterprises, Inc., 7.625%(e)		1,145,353

		REITs – Office Property — 0.0%
	1,596	Highwoods Realty LP, Series A, 8.625%		1,915,200

See accompanying notes to financial statements.

| 40

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)


Shares		Description	Value (†)
		REITs – Warehouse/Industrials — 0.1%
	116,192	ProLogis, Inc., Series Q, 8.540%	$	7,436,288

		Total Non-Convertible Preferred Stocks (Identified Cost $8,540,569)		10,750,273


		Total Preferred Stocks (Identified Cost $173,641,327)		155,157,666


	Closed-End Investment Companies — 0.0%
	170,282	NexPoint Strategic Opportunities Fund (Identified Cost $10,230,310)		3,814,317


Principal Amount (‡)
	Short-Term Investments — 17.3%
$	124,969,685	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/28/2018 at 1.300% to be repurchased at $124,983,223 on 10/01/2018 collateralized by $128,080,000 U.S. Treasury Bond, 3.125% due 8/15/2044 valued at $127,208,031; $275,000 U.S. Treasury Note, 2.000% due 10/31/2022 valued at $267,265 including accrued interest (Note 2 of Notes to Financial Statements)		124,969,685
	300,000,000	U.S. Treasury Bills, 1.980% - 1.985%, 11/01/2018(n)(o)		299,467,188
	208,000,000	U.S. Treasury Bills, 1.995%, 11/08/2018(n)		207,545,520
	400,000,000	U.S. Treasury Bills, 2.030% - 2.047%, 11/15/2018(n)(o)		398,959,376
	100,000,000	U.S. Treasury Bills, 2.060%, 11/29/2018(n)		99,652,146
	89,275,000	U.S. Treasury Bills, 2.075%, 10/18/2018(n)		89,187,839
	80,000,000	U.S. Treasury Bills, 2.081% - 2.086%, 12/06/2018(n)(o)		79,687,966
	25,000,000	U.S. Treasury Bills, 2.118%, 12/20/2018(n)		24,881,736
	10,725,000	U.S. Treasury Bills, 2.140%, 12/27/2018(n)		10,669,210
	150,000,000	U.S. Treasury Bills, 2.160% - 2.200%, 4/25/2019(n)(o)		147,989,354

		Total Short-Term Investments (Identified Cost $1,483,233,210)		1,483,010,020


		Total Investments — 95.2% (Identified Cost $8,460,230,324)		8,157,325,749
		Other assets less liabilities — 4.8%		410,518,873

		Net Assets — 100.0%	$	8,567,844,622


	(‡)	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)	Level 3 security. Value has been determined using significant unobservable inputs. See Note 3 of Notes to Financial Statements.
	(b)	Fair valued by the Fund’s adviser. At September 30, 2018, the value of these securities amounted to $20,684,320 or 0.2% of net assets. See Note 2 of Notes to Financial Statements.

See accompanying notes to financial statements.

41 |

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)



	(c)			Securities subject to restriction on resale. At September 30, 2018, the restricted securities held by the Fund are as follows:



	Acquisition Date	Acquisition Cost		Value		% of Net Assets
Dex Media, Inc.	August 12, 2016	$	1,476,220	$	3,181,952		Less than 0.1%
GCA2014 Holdings Ltd., Series 2014-1, Class C	December 18, 2014		21,396,647		17,108,727		0.2%
GCA2014 Holdings Ltd., Series 2014-1, Class D	December 18, 2014		8,494,926		3,571,492		Less than 0.1%
GCA2014 Holdings Ltd., Series 2014-1, Class E	December 18, 2014		32,732,982		—		—
Onsite Rental Group Pty Ltd., Notes	October 26, 2017		15,666,497		16,383,284		0.2%
Onsite Rental Group Pty Ltd.	October 26, 2017		—		—		—
Paragon Offshore Ltd., Litigation Units Class A	July 18, 2017		1,167,146		126,777		Less than 0.1%
Paragon Offshore Ltd., Litigation Units Class B	July 18, 2017		22,768,653		8,738,241		0.1%
Southcross Holdings Group LLC	April 29, 2016		—		—		—
Southcross Holdings LP, Class A	April 29, 2016		2,215,133		340,650		Less than 0.1%


	(d)			Illiquid security. (Unaudited)
	(e)			Non-income producing security.
	(f)			Securities classified as fair valued pursuant to the Fund’s pricing policies and procedures. At September 30, 2018, the value of these securities amounted to $116,214,631 or 1.4% of net assets. See Note 2 of Notes to Financial Statements.
	(g)			Variable rate security. Rate as of September 30, 2018 is disclosed.
	(h)			The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
	(i)			Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional principal.
	(j)			Perpetual bond with no specified maturity date.
	(k)			Variable rate security. The interest rate adjusts periodically based on; (i) changes in current interest rates and/or prepayments on underlying pools of assets, if applicable, (ii) reference to a base lending rate plus or minus a margin, and/or (iii) reference to a base lending rate adjusted by a multiplier and/or subject to certain floors or caps. Rate as of September 30, 2018 is disclosed.
	(l)			Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
	(m)			Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional principal. For the period ended September 30, 2018, interest payments were made in cash and principal.
	(n)			Interest rate represents discount rate at time of purchase; not a coupon rate.
	(o)			The Fund’s investment in U.S. Government/Agency securities is comprised of various lots with differing discount rates. These separate investments, which have the same maturity date, 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, 2018, the value of Rule 144A holdings amounted to $1,296,739,034 or 15.1% of net assets.
	ABS			Asset-Backed Securities
	EMTN			Euro Medium Term Note
	GMTN			Global Medium Term Note
	GO			General Obligation
	LIBOR			London Interbank Offered Rate

See accompanying notes to financial statements.

| 42

Portfolio of Investments – as of September 30, 2018

Loomis Sayles Strategic Income Fund – (continued)



	MBIA			Municipal Bond Investors Assurance Corp.
	MTN			Medium Term Note
	PIK			Payment-in-Kind
	REITs			Real Estate Investment Trusts

	AUD			Australian Dollar
	BRL			Brazilian Real
	CAD			Canadian Dollar
	EUR			Euro
	ISK			Icelandic Krona
	MXN			Mexican Peso
	NOK			Norwegian Krone
	NZD			New Zealand Dollar

Industry Summary at September 30, 2018


Treasuries	18.4	%
Banking	5.2
Independent Energy	5.2
Pharmaceuticals	4.7
Wirelines	3.8
Finance Companies	3.4
Healthcare	3.3
Cable Satellite	3.0
Airlines	2.8
Oil Field Services	2.6
Chemicals	2.5
Technology	2.4
Other Investments, less than 2% each	20.6
Short-Term Investments	17.3

Total Investments	95.2
Other assets less liabilities	4.8

Net Assets	100.0	%

Currency Exposure Summary at September 30, 2018


United States Dollar	74.5	%
Mexican Peso	5.6
Canadian Dollar	4.9
New Zealand Dollar	4.2
Australian Dollar	2.7
Other, less than 2% each	3.3

Total Investments	95.2
Other assets less liabilities	4.8

Net Assets	100.0	%

See accompanying notes to financial statements.

43 |

This Page Intentionally Left Blank

| 44

Statements of Assets and Liabilities

September 30, 2018


	Investment Grade Bond Fund			Strategic Income Fund
ASSETS
Investments at cost	$	5,203,133,626		$	8,460,230,324
Net unrealized depreciation		(51,873,885	)		(302,904,575	)

Investments at value		5,151,259,741			8,157,325,749
Cash		10			—
Foreign currency at value (identified cost $46,611 and $43,217, respectively)		56,426			43,619
Receivable for Fund shares sold		10,809,496			11,644,039
Receivable for securities sold		363,336,542			311,864,792
Dividends and interest receivable		44,865,535			112,740,960
Tax reclaims receivable		—			926,106
Prepaid expenses (Note 8)		6,226			9,281

TOTAL ASSETS		5,570,333,976			8,594,554,546

LIABILITIES
Payable for securities purchased		1,363,902			1,428,285
Payable for Fund shares redeemed		7,315,775			11,424,083
Payable to custodian bank (Note 7)		—			7,666,023
Management fees payable (Note 5)		1,709,008			3,965,681
Deferred Trustees’ fees (Note 5)		752,029			1,341,883
Administrative fees payable (Note 5)		199,407			308,271
Payable to distributor (Note 5d)		45,879			85,632
Other accounts payable and accrued expenses		372,685			490,066

TOTAL LIABILITIES		11,758,685			26,709,924

NET ASSETS	$	5,558,575,291		$	8,567,844,622

NET ASSETS CONSIST OF:
Paid-in capital	$	5,621,673,484		$	8,913,607,644
Accumulated loss		(63,098,193	)		(345,763,022	)

NET ASSETS	$	5,558,575,291		$	8,567,844,622

See accompanying notes to financial statements.

45 |

Statements of Assets and Liabilities (continued)

September 30, 2018


	Investment Grade Bond Fund		Strategic Income Fund
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Class A shares:
Net assets	$	777,390,942	$	1,986,300,178

Shares of beneficial interest		70,791,620		138,005,516

Net asset value and redemption price per share	$	10.98	$	14.39

Offering price per share (100/95.75 of net asset value) (Note 1)	$	11.47	$	15.03

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)
Net assets	$	412,788,060	$	1,153,852,571

Shares of beneficial interest		38,015,198		79,451,461

Net asset value and offering price per share	$	10.86	$	14.52

Class N shares:
Net assets	$	1,251,189,264	$	176,455,900

Shares of beneficial interest		113,924,091		12,272,775

Net asset value, offering and redemption price per share	$	10.98	$	14.38

Class Y shares:
Net assets	$	3,001,906,314	$	5,118,015,616

Shares of beneficial interest		273,173,957		355,984,348

Net asset value, offering and redemption price per share	$	10.99	$	14.38

Admin Class shares:
Net assets	$	115,300,711	$	133,220,357

Shares of beneficial interest		10,526,363		9,288,294

Net asset value, offering and redemption price per share	$	10.95	$	14.34

See accompanying notes to financial statements.

| 46

Statements of Operations

For the Year Ended September 30, 2018


	Investment Grade Bond Fund			Strategic Income Fund
INVESTMENT INCOME
Interest	$	208,583,162		$	394,395,051
Dividends		3,275,378			25,705,582

		211,858,540			420,100,633

Expenses
Management fees (Note 5)		24,064,905			52,154,306
Service and distribution fees (Note 5)		7,990,970			23,046,569
Administrative fees (Note 5)		2,648,877			4,086,855
Trustees’ fees and expenses (Note 5)		233,306			367,930
Transfer agent fees and expenses (Notes 5 and 6)		4,648,637			7,446,568
Audit and tax services fees		63,525			64,127
Custodian fees and expenses		267,227			458,679
Legal fees		122,938			187,305
Registration fees		258,232			247,887
Shareholder reporting expenses		714,099			752,767
Miscellaneous expenses (Note 8)		159,795			259,883

Total expenses		41,172,511			89,072,876
Less waiver and/or expense reimbursement (Note 5)		(1,270,386	)		—

Net expenses		39,902,125			89,072,876

Net investment income		171,956,415			331,027,757

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		(64,668,766	)		5,557,331
Foreign currency transactions (Note 2c)		(4,121,375	)		(3,416,189	)
Net change in unrealized appreciation (depreciation) on:
Investments		(88,563,612	)		(220,658,716	)
Foreign currency translations (Note 2c)		193,101			59,675

Net realized and unrealized loss on investments and foreign currency transactions		(157,160,652	)		(218,457,899	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	14,795,763		$	112,569,858

See accompanying notes to financial statements.

47 |

Statements of Changes in Net Assets


	Investment Grade Bond Fund						Strategic Income Fund
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2018			Year Ended September 30, 2017
FROM OPERATIONS:
Net investment income	$	171,956,415		$	205,406,044		$	331,027,757		$	398,140,452
Net realized gain (loss) on investments and foreign currency transactions		(68,790,141	)		116,825,138			2,141,142			129,390,356
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(88,370,511	)		(91,129,640	)		(220,599,041	)		172,652,000

Net increase in net assets resulting from operations		14,795,763			231,101,542			112,569,858			700,182,808

FROM DISTRIBUTIONS TO SHAREHOLDERS:
Class A		(26,935,957	)		(60,689,574	)(a)		(83,233,392	)		(129,973,495	)(a)
Class C		(15,654,049	)		(48,818,614	)(a)		(65,182,313	)		(147,784,447	)(a)
Class N		(41,987,053	)		(22,304,558	)(a)		(7,465,601	)		(8,302,607	)(a)
Class Y		(111,284,265	)		(262,616,392	)(a)		(249,028,627	)		(319,830,876	)(a)
Admin Class		(778,851	)		(1,844,361	)(a)		(5,735,653	)		(7,820,574	)(a)

Total distributions		(196,640,175	)		(396,273,499	)		(410,645,586	)		(613,711,999	)

NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 11)		(534,159,760	)		(345,835,758	)		(1,369,576,617	)		(1,423,618,832	)

Net decrease in net assets		(716,004,172	)		(511,007,715	)		(1,667,652,345	)		(1,337,148,023	)
NET ASSETS
Beginning of the year		6,274,579,463			6,785,587,178			10,235,496,967			11,572,644,990

End of the year	$	5,558,575,291		$	6,274,579,463		$	8,567,844,622		$	10,235,496,967

(a)	See Note 2e of Notes to Financial Statements.

See accompanying notes to financial statements.

| 48

Financial Highlights

For a share outstanding throughout each period.


	Investment Grade Bond Fund—Class A
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	11.30		$	11.59		$	11.10		$	12.11		$	12.22

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.30			0.36			0.39			0.40			0.46
Net realized and unrealized gain (loss)		(0.28	)		0.05			0.48			(0.95	)		0.26

Total from Investment Operations		0.02			0.41			0.87			(0.55	)		0.72

LESS DISTRIBUTIONS FROM:
Net investment income		(0.21	)		(0.26	)		(0.23	)		(0.34	)		(0.51	)
Net realized capital gains		(0.13	)		(0.44	)		(0.15	)		(0.12	)		(0.32	)

Total Distributions		(0.34	)		(0.70	)		(0.38	)		(0.46	)		(0.83	)

Net asset value, end of the period	$	10.98		$	11.30		$	11.59		$	11.10		$	12.11

Total return(b)		0.19	%(c)		3.88	%		8.06	%		(4.72	)%		6.04	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	777,391		$	902,955		$	1,130,260		$	1,628,216		$	1,932,847
Net expenses		0.80	%(d)(f)		0.82	%(e)		0.85	%		0.83	%		0.83	%
Gross expenses		0.82	%		0.82	%		0.85	%		0.83	%		0.83	%
Net investment income		2.73	%		3.23	%		3.49	%		3.38	%		3.75	%
Portfolio turnover rate		3	%		10	%		11	%		23	%		19	%

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

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

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

(d)	Effective July 1, 2018, the expense limit decreased to 0.78%.

(e)	Effective July 1, 2017, the expense limit decreased to 0.80%.

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

See accompanying notes to financial statements.

49 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Investment Grade Bond Fund—Class C
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	11.19		$	11.48		$	11.00		$	12.00		$	12.11

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.22			0.27			0.30			0.31			0.36
Net realized and unrealized gain (loss)		(0.28	)		0.06			0.47			(0.94	)		0.27

Total from Investment Operations		(0.06	)		0.33			0.77			(0.63	)		0.63

LESS DISTRIBUTIONS FROM:
Net investment income		(0.14	)		(0.18	)		(0.14	)		(0.25	)		(0.42	)
Net realized capital gains		(0.13	)		(0.44	)		(0.15	)		(0.12	)		(0.32	)

Total Distributions		(0.27	)		(0.62	)		(0.29	)		(0.37	)		(0.74	)

Net asset value, end of the period	$	10.86		$	11.19		$	11.48		$	11.00		$	12.00

Total return(b)		(0.53	)%(c)		3.12	%		7.18	%		(5.40	)%		5.29	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	412,788		$	689,798		$	1,001,522		$	1,219,687		$	1,524,806
Net expenses		1.55	%(d)(e)		1.57	%(f)		1.60	%		1.58	%		1.58	%
Gross expenses		1.57	%		1.57	%		1.60	%		1.58	%		1.58	%
Net investment income		1.96	%		2.49	%		2.74	%		2.63	%		3.00	%
Portfolio turnover rate		3	%		10	%		11	%		23	%		19	%

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

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

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

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

(e)	Effective July 1, 2018, the expense limit decreased to 1.53%.

(f)	Effective July 1, 2017, the expense limit decreased to 1.55%.

See accompanying notes to financial statements.

| 50

Financial Highlights (continued)

For a share outstanding throughout each period.


	Investment Grade Bond Fund—Class N
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	11.30		$	11.58		$	11.11		$	12.11		$	12.22

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.34			0.39			0.43			0.44			0.50
Net realized and unrealized gain (loss)		(0.28	)		0.07			0.47			(0.93	)		0.26

Total from Investment Operations		0.06			0.46			0.90			(0.49	)		0.76

LESS DISTRIBUTIONS FROM:
Net investment income		(0.25	)		(0.30	)		(0.28	)		(0.39	)		(0.55	)
Net realized capital gains		(0.13	)		(0.44	)		(0.15	)		(0.12	)		(0.32	)

Total Distributions		(0.38	)		(0.74	)		(0.43	)		(0.51	)		(0.87	)

Net asset value, end of the period	$	10.98		$	11.30		$	11.58		$	11.11		$	12.11

Total return		0.50	%		4.34	%		8.31	%		(4.28	)%		6.41	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	1,251,189		$	1,203,169		$	47,343		$	21,851		$	6,101
Net expenses		0.47	%(b)		0.48	%(c)		0.47	%		0.47	%		0.47	%(d)
Gross expenses		0.47	%		0.48	%		0.47	%		0.47	%		0.47	%(d)
Net investment income		3.05	%		3.51	%		3.88	%		3.78	%		4.07	%
Portfolio turnover rate		3	%		10	%		11	%		23	%		19	%

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

(b)	Effective July 1, 2018, the expense limit decreased to 0.48%.

(c)	Effective July 1, 2017, the expense limit decreased to 0.50%.

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

See accompanying notes to financial statements.

51 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Investment Grade Bond Fund—Class Y
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	11.31		$	11.59		$	11.11		$	12.12		$	12.23

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.33			0.39			0.42			0.43			0.49
Net realized and unrealized gain (loss)		(0.28	)		0.06			0.47			(0.95	)		0.26

Total from Investment Operations		0.05			0.45			0.89			(0.52	)		0.75

LESS DISTRIBUTIONS FROM:
Net investment income		(0.24	)		(0.29	)		(0.26	)		(0.37	)		(0.54	)
Net realized capital gains		(0.13	)		(0.44	)		(0.15	)		(0.12	)		(0.32	)

Total Distributions		(0.37	)		(0.73	)		(0.41	)		(0.49	)		(0.86	)

Net asset value, end of the period	$	10.99		$	11.31		$	11.59		$	11.11		$	12.12

Total return		0.43	%(b)		4.24	%		8.25	%		(4.47	)%		6.30	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	3,001,906		$	3,453,137		$	4,571,167		$	6,081,536		$	6,911,938
Net expenses		0.55	%(c)(d)		0.57	%(e)		0.60	%		0.58	%		0.59	%
Gross expenses		0.57	%		0.57	%		0.60	%		0.58	%		0.59	%
Net investment income		2.98	%		3.48	%		3.74	%		3.63	%		3.99	%
Portfolio turnover rate		3	%		10	%		11	%		23	%		19	%

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

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

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

(d)	Effective July 1, 2018, the expense limit decreased to 0.53%.

(e)	Effective July 1, 2017, the expense limit decreased to 0.55%.

See accompanying notes to financial statements.

| 52

Financial Highlights (continued)

For a share outstanding throughout each period.


	Investment Grade Bond Fund—Admin Class
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	11.28		$	11.56		$	11.08		$	12.09		$	12.20

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.28			0.34			0.37			0.37			0.43
Net realized and unrealized gain (loss)		(0.28	)		0.06			0.47			(0.95	)		0.26

Total from Investment Operations		0.00	(b)		0.40			0.84			(0.58	)		0.69

LESS DISTRIBUTIONS FROM:
Net investment income		(0.20	)		(0.24	)		(0.21	)		(0.31	)		(0.48	)
Net realized capital gains		(0.13	)		(0.44	)		(0.15	)		(0.12	)		(0.32	)

Total Distributions		(0.33	)		(0.68	)		(0.36	)		(0.43	)		(0.80	)

Net asset value, end of the period	$	10.95		$	11.28		$	11.56		$	11.08		$	12.09

Total return		(0.07	)%(c)		3.76	%(c)		7.73	%		(4.95	)%		5.79	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	115,301		$	25,521		$	35,294		$	37,355		$	25,585
Net expenses		1.02	%(d)(e)(f)		1.02	%(f)(g)(h)		1.07	%(i)		1.08	%		1.09	%
Gross expenses		1.05	%(d)		1.03	%(g)		1.07	%(i)		1.08	%		1.09	%
Net investment income		2.56	%		3.03	%		3.27	%		3.14	%		3.49	%
Portfolio turnover rate		3	%		10	%		11	%		23	%		19	%

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

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

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

(d)	Includes refund of prior year service fee of 0.02%. See Note 5b of Notes to Financial Statements.

(e)	Effective July 1, 2018, the expense limit decreased to 1.03%.

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

(g)	Includes refund of prior year service fee of 0.05%.

(h)	Effective July 1, 2017, the expense limit decreased to 1.05%.

(i)	Includes refund of prior year service fee of 0.03%.

See accompanying notes to financial statements.

53 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Strategic Income Fund—Class A
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	14.84		$	14.70		$	14.70		$	16.75		$	15.93

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.52			0.56			0.57			0.64			0.58
Net realized and unrealized gain (loss)		(0.33	)		0.42			0.61			(1.74	)		0.90

Total from Investment Operations		0.19			0.98			1.18			(1.10	)		1.48

LESS DISTRIBUTIONS FROM:
Net investment income		(0.57	)		(0.52	)		(0.36	)		(0.57	)		(0.62	)
Net realized capital gains		(0.07	)		(0.32	)		(0.82	)		(0.38	)		(0.04	)

Total Distributions		(0.64	)		(0.84	)		(1.18	)		(0.95	)		(0.66	)

Net asset value, end of the period	$	14.39		$	14.84		$	14.70		$	14.70		$	16.75

Total return(b)		1.34	%		7.01	%		8.72	%		(6.88	)%		9.34	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	1,986,300		$	1,999,385		$	2,514,770		$	3,318,262		$	4,408,257
Net expenses		0.96	%		0.96	%		0.96	%		0.94	%		0.94	%
Gross expenses		0.96	%		0.96	%		0.96	%		0.94	%		0.94	%
Net investment income		3.57	%		3.82	%		4.01	%		3.95	%		3.44	%
Portfolio turnover rate		6	%		11	%		17	%		23	%		26	%

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

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

See accompanying notes to financial statements.

| 54

Financial Highlights (continued)

For a share outstanding throughout each period.


	Strategic Income Fund—Class C
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	14.97		$	14.81		$	14.80		$	16.85		$	16.03

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.41			0.45			0.47			0.52			0.45
Net realized and unrealized gain (loss)		(0.33	)		0.44			0.61			(1.74	)		0.90

Total from Investment Operations		0.08			0.89			1.08			(1.22	)		1.35

LESS DISTRIBUTIONS FROM:
Net investment income		(0.46	)		(0.41	)		(0.25	)		(0.45	)		(0.49	)
Net realized capital gains		(0.07	)		(0.32	)		(0.82	)		(0.38	)		(0.04	)

Total Distributions		(0.53	)		(0.73	)		(1.07	)		(0.83	)		(0.53	)

Net asset value, end of the period	$	14.52		$	14.97		$	14.81		$	14.80		$	16.85

Total return(b)		0.60	%		6.20	%		7.91	%		(7.60	)%		8.54	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	1,153,853		$	2,248,939		$	3,433,204		$	4,295,139		$	5,390,222
Net expenses		1.71	%		1.71	%		1.71	%		1.69	%		1.69	%
Gross expenses		1.71	%		1.71	%		1.71	%		1.69	%		1.69	%
Net investment income		2.79	%		3.08	%		3.26	%		3.20	%		2.68	%
Portfolio turnover rate		6	%		11	%		17	%		23	%		26	%

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

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

See accompanying notes to financial statements.

55 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Strategic Income Fund—Class N
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	14.83		$	14.69		$	14.69		$	16.73		$	15.92

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.56			0.60			0.61			0.69			0.61
Net realized and unrealized gain (loss)		(0.32	)		0.43			0.62			(1.73	)		0.91

Total from Investment Operations		0.24			1.03			1.23			(1.04	)		1.52

LESS DISTRIBUTIONS FROM:
Net investment income		(0.62	)		(0.57	)		(0.41	)		(0.62	)		(0.67	)
Net realized capital gains		(0.07	)		(0.32	)		(0.82	)		(0.38	)		(0.04	)

Total Distributions		(0.69	)		(0.89	)		(1.23	)		(1.00	)		(0.71	)

Net asset value, end of the period	$	14.38		$	14.83		$	14.69		$	14.69		$	16.73

Total return		1.67	%		7.38	%		9.09	%		(6.58	)%		9.70	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	176,456		$	141,695		$	130,637		$	83,405		$	57,752
Net expenses		0.63	%		0.63	%		0.63	%		0.62	%		0.62	%
Gross expenses		0.63	%		0.63	%		0.63	%		0.62	%		0.62	%
Net investment income		3.91	%		4.13	%		4.34	%		4.33	%		3.62	%
Portfolio turnover rate		6	%		11	%		17	%		23	%		26	%

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

See accompanying notes to financial statements.

| 56

Financial Highlights (continued)

For a share outstanding throughout each period.


	Strategic Income Fund—Class Y
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	14.83		$	14.69		$	14.69		$	16.73		$	15.92

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.55			0.59			0.61			0.68			0.61
Net realized and unrealized gain (loss)		(0.32	)		0.43			0.61			(1.73	)		0.90

Total from Investment Operations		0.23			1.02			1.22			(1.05	)		1.51

LESS DISTRIBUTIONS FROM:
Net investment income		(0.61	)		(0.56	)		(0.40	)		(0.61	)		(0.66	)
Net realized capital gains		(0.07	)		(0.32	)		(0.82	)		(0.38	)		(0.04	)

Total Distributions		(0.68	)		(0.88	)		(1.22	)		(0.99	)		(0.70	)

Net asset value, end of the period	$	14.38		$	14.83		$	14.69		$	14.69		$	16.73

Total return		1.66	%		7.22	%		9.00	%		(6.65	)%		9.63	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	5,118,016		$	5,702,607		$	5,350,759		$	7,018,369		$	8,747,384
Net expenses		0.71	%		0.71	%		0.71	%		0.69	%		0.69	%
Gross expenses		0.71	%		0.71	%		0.71	%		0.69	%		0.69	%
Net investment income		3.82	%		4.04	%		4.26	%		4.21	%		3.65	%
Portfolio turnover rate		6	%		11	%		17	%		23	%		26	%

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

See accompanying notes to financial statements.

57 |

Financial Highlights (continued)

For a share outstanding throughout each period.


	Strategic Income Fund—Admin Class
	Year Ended September 30, 2018			Year Ended September 30, 2017			Year Ended September 30, 2016			Year Ended September 30, 2015			Year Ended September 30, 2014
Net asset value, beginning of the period	$	14.79		$	14.65		$	14.66		$	16.70		$	15.89

INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income(a)		0.48			0.52			0.53			0.60			0.53
Net realized and unrealized gain (loss)		(0.33	)		0.43			0.61			(1.73	)		0.90

Total from Investment Operations		0.15			0.95			1.14			(1.13	)		1.43

LESS DISTRIBUTIONS FROM:
Net investment income		(0.53	)		(0.49	)		(0.33	)		(0.53	)		(0.58	)
Net realized capital gains		(0.07	)		(0.32	)		(0.82	)		(0.38	)		(0.04	)

Total Distributions		(0.60	)		(0.81	)		(1.15	)		(0.91	)		(0.62	)

Net asset value, end of the period	$	14.34		$	14.79		$	14.65		$	14.66		$	16.70

Total return		1.09	%		6.79	%		8.42	%		(7.13	)%		9.12	%
RATIOS TO AVERAGE NET ASSETS:
Net assets, end of the period (000’s)	$	133,220		$	142,871		$	143,275		$	141,844		$	139,423
Net expenses		1.20	%(b)		1.19	%(c)		1.20	%(d)		1.19	%		1.19	%
Gross expenses		1.20	%(b)		1.19	%(c)		1.20	%(d)		1.19	%		1.19	%
Net investment income		3.33	%		3.57	%		3.76	%		3.73	%		3.15	%
Portfolio turnover rate		6	%		11	%		17	%		23	%		26	%

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

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

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

(d)	Includes refund of prior year service fee of 0.01%.

See accompanying notes to financial statements.

| 58

Notes to Financial Statements

September 30, 2018

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

Loomis Sayles Investment Grade Bond Fund (the “Investment Grade Bond Fund”)

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

Each Fund is a diversified investment company.

Each Fund offers Class A, Class C, Class N, Class Y and Admin Class shares.

Class A shares are sold with a maximum front-end sales charge of 4.25%. Class C shares do not pay a front-end sales charge, pay higher Rule 12b-1 fees than Class A shares for ten years (at which point they automatically convert to Class A shares) and may be subject to a contingent deferred sales charge (“CDSC”) of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are offered with an initial minimum investment of $1,000,000. Class Y shares are offered with an initial minimum investment of $100,000. Certain categories of investors are exempted from the minimum investment amounts for Class N and Class Y as outlined in the relevant Funds’ prospectus. Admin Class shares do not pay a front-end sales charge or a CDSC, but do pay a Rule 12b-1 fee. Admin Class shares are offered exclusively through intermediaries.

Most expenses can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, and Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”) and Natixis ETF Trust. Expenses of a Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (such as the Rule 12b-1 fees applicable to Class A, Class C and Admin Class), and transfer agent fees are borne collectively for Class A, Class C, Class Y, and Admin Class and individually for Class N. In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of the Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

59 |

Notes to Financial Statements (continued)

September 30, 2018

reporting guidelines provided for investment companies and are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions subsequent to year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.

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

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

| 60

Notes to Financial Statements (continued)

September 30, 2018

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

As of September 30, 2018, securities of the Funds were fair valued as follows:


Fund	Securities classified as fair valued		Percentage of Net Assets			Securities fair valued by the Fund’s adviser		Percentage of Net Assets
Investment Grade Bond Fund	$	116,035,671		2.1	%	$	845		Less than 0.1	%
Strategic Income Fund		116,214,631		1.4	%		20,684,320		0.2	%

61 |

Notes to Financial Statements (continued)

September 30, 2018

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

During the year ended September 30, 2018, the amount of income available to be distributed has been reduced by the following amounts as a result of losses arising from changes in exchange rates:


Investment Grade Bond Fund	$	120,034,497
Strategic Income Fund	$	46,611,188

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

| 62

Notes to Financial Statements (continued)

September 30, 2018

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

No forward foreign currency contracts were held by the Funds during the year ended September 30, 2018.

e. New Disclosure Requirements. In accordance with new reporting requirements pursuant to Regulation S-X of the Securities and Exchange Commission, presentation of certain amounts on the Statements of Changes in Net Assets, for the year ended September 30, 2017, have been conformed to meet the new disclosure requirements. These adjustments include Distributions to Shareholders; where the prior disclosure separately stated distributions from net investment income and distributions from net realized capital gains for each share class of the Fund, they are now combined into a single line item for each respective share class. In addition, disclosure of Undistributed Net Investment Income has been removed from the Statements of Changes in Net Assets.

The following is a summary of the previously disclosed amounts, as reported at September 30, 2017:


Investment Grade Bond Fund
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A	$	(22,698,039	)
Class C		(13,586,835	)
Class N		(19,578,968	)
Class Y		(95,925,578	)
Admin Class		(642,265	)
Net realized capital gains
Class A		(37,991,535	)
Class C		(35,231,779	)
Class N		(2,725,590	)
Class Y		(166,690,814	)
Admin Class		(1,202,096	)

Total distributions	$	(396,273,499	)

UNDISTRIBUTED NET INVESTMENT INCOME	$	60,682,395

63 |

Notes to Financial Statements (continued)

September 30, 2018


Strategic Income Fund
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class A	$	(78,875,422	)
Class C		(78,726,042	)
Class N		(5,305,880	)
Class Y		(205,067,266	)
Admin Class		(4,720,753	)
Net realized capital gains
Class A		(51,098,073	)
Class C		(69,058,405	)
Class N		(2,996,727	)
Class��Y		(114,763,610	)
Admin Class		(3,099,821	)

Total distributions	$	(613,711,999	)

UNDISTRIBUTED NET INVESTMENT INCOME	$	28,981,152

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, 2018 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.

| 64

Notes to Financial Statements (continued)

September 30, 2018

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.

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 in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as distribution redesignations, defaulted and/or non-income producing securities, foreign currency gains and losses, premium amortization, convertible bonds, paydown gains and losses, partnership basis adjustments, contingent payment debt instruments, and capital gain and return of capital distributions received. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts reported on the Statements of Assets and Liabilities. Temporary differences between book and tax distributable earnings are primarily due to corporate actions, deferred Trustees’ fees, wash sales, premium amortization, return of capital distributions received, trust preferred securities, defaulted and/or non-income producing securities, contingent payment debt instruments, partnership basis adjustments and convertible bonds. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and net realized short-term capital gains are reported as 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, 2018 and 2017 were as follows:


	2018 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Investment Grade Bond Fund	$	126,989,994	$	69,650,181	$	196,640,175
Strategic Income Fund		365,189,758		45,455,828		410,645,586


	2017 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total
Investment Grade Bond Fund	$	158,093,971	$	238,179,528	$	396,273,499
Strategic Income Fund		372,695,363		241,016,636		613,711,999

65 |

Notes to Financial Statements (continued)

September 30, 2018

For the year ended September 30, 2017 differences between amounts previously reported and now disclosed in Note 2e of the Notes to Financial Statements are primarily attributable to different book and tax treatment for short-term capital gains.

As of September 30, 2018, the components of distributable earnings on a tax basis were as follows:


	Investment Grade Bond Fund			Strategic Income Fund
Undistributed ordinary income	$	559,022		$	12,798,460
Undistributed long-term capital gains		26,482,210			34,578,731

Total undistributed earnings		27,041,232			47,377,191

Unrealized depreciation		(87,081,062	)		(360,598,689	)

Total accumulated losses	$	(60,039,830	)	$	(313,221,498	)

As of September 30, 2018, unrealized appreciation (depreciation) as a component of distributable earnings was as follows:


	Investment Grade Bond Fund			Strategic Income Fund
Unrealized appreciation (depreciation) Investments	$	114,863,448		$	102,198,245
Foreign currency translations		(201,944,510	)		(462,796,934	)

Total unrealized depreciation	$	(87,081,062	)	$	(360,598,689	)

As of September 30, 2018, the cost of investments and unrealized appreciation (depreciation) on a federal tax basis were as follows:


	Investment Grade Bond Fund			Strategic Income Fund
Federal tax cost	$	5,240,724,476		$	8,526,267,833

Gross tax appreciation	$	236,522,892		$	502,804,118
Gross tax depreciation		(325,987,627	)		(871,746,202	)

Net tax depreciation	$	(89,464,735	)	$	(368,942,084	)

| 66

Notes to Financial Statements (continued)

September 30, 2018

Differences between these amounts and those reported in the components of distributable earnings are primarily attributable to foreign currency mark-to-market.

h. Loan Participations. Each Fund may invest in loans to corporate, governmental or other borrowers. The Funds’ investments in loans may be in the form of participations in loans or assignments of all or a portion of loans. A loan is often administered by a bank or other financial institution that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, (i) a Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the party from whom the Fund has purchased the participation and only upon receipt by that party of payments from the borrower and (ii) a Fund generally has no right to enforce compliance by the borrower with the terms of the loan agreement or to vote on matters arising under the loan agreement. Thus, a Fund may be subject to credit risk both of the party from whom it purchased the loan participation and the borrower and the Fund may have minimal control over the terms of any loan modification. When a Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan. Loan agreements and participations outstanding at the end of the period, if any, are listed in each applicable Fund’s Schedule of Investments.

i. Repurchase Agreements. Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of September 30, 2018, each Fund, as applicable, had investments in repurchase agreements for which the value of the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.

j. Securities Lending. The Funds have entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Funds, to lend securities to certain designated borrowers. The loans are collateralized with cash or securities in an amount equal to at least 105% or 102% of the market value (including accrued interest) of the loaned international or domestic securities, respectively, when the loan is initiated. Thereafter, the value of the collateral must remain at least 102% of the market value (including accrued interest) of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value (including accrued interest) of loaned securities for non-U.S. equities; and at least 100% of the market value (including

67 |

Notes to Financial Statements (continued)

September 30, 2018

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, 2018, neither Fund had loaned securities under this agreement.

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

•

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

•

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

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Notes to Financial Statements (continued)

September 30, 2018

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

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2018, at value:

Investment Grade Bond Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	—	$	12,542,941	$	50,772,266	(b)	$	63,315,207
Airlines		—		80,162,108		7,789,254	(b)		87,951,362
Finance Companies		1,388,072		237,065,814		—			238,453,886
Metals & Mining		—		91,088,549		845	(c)		91,089,394
All Other Non-Convertible Bonds(a)		—		2,525,655,880		—			2,525,655,880

Total Non-Convertible Bonds		1,388,072		2,946,515,292		58,562,365			3,006,465,729

Convertible Bonds(a)		—		82,845,799		—			82,845,799
Municipals(a)		—		18,101,309		—			18,101,309

Total Bonds and Notes		1,388,072		3,047,462,400		58,562,365			3,107,412,837

Common Stocks(a)		37,590,298		—		—			37,590,298
Preferred Stocks(a)		—		2,652,000		—			2,652,000
Short-Term Investments		—		2,003,604,606		—			2,003,604,606

Total	$	38,978,370	$	5,053,719,006	$	58,562,365		$	5,151,259,741

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

(b)	Valued using broker-dealer bid prices.

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

69 |

Notes to Financial Statements (continued)

September 30, 2018

Strategic Income Fund

Asset Valuation Inputs


Description	Level 1		Level 2		Level 3			Total
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	—	$	8,953,489	$	20,680,219	(b)(c)	$	29,633,708
Airlines		—		239,031,709		455,986	(d)		239,487,695
Finance Companies		2,444,830		285,125,617		—			287,570,447
Metals & Mining		—		90,600,518		4,101	(e)		90,604,619
All Other Non-Convertible Bonds(a)		—		4,807,776,897		—			4,807,776,897

Total Non-Convertible Bonds		2,444,830		5,431,488,230		21,140,306			5,455,073,366

Convertible Bonds(a)		—		368,199,658		—			368,199,658
Municipals(a)		—		137,186,915		—			137,186,915

Total Bonds and Notes		2,444,830		5,936,874,803		21,140,306			5,960,459,939

Loan Participations(a)		—		—		8,343,807	(d)		8,343,807
Senior Loans(a)		—		92,210,003		—			92,210,003
Common Stocks
Media		—		3,181,952		—			3,181,952
Oil, Gas & Consumable Fuels		3,883,537		9,205,668		—			13,089,205
Specialty Retail		—		—		—	(c)		—
All Other Common Stocks(a)		438,058,840		—		—			438,058,840

Total Common Stocks		441,942,377		12,387,620		—			454,329,997

Preferred Stocks
Convertible Preferred Stocks
Independent Energy		9,323,191		33,713,599		—			43,036,790
Midstream		—		42,300,041		—			42,300,041
REITs – Mortgage		—		15,437,576		—			15,437,576
All Other Convertible Preferred Stocks(a)		43,632,986		—		—			43,632,986

Total Convertible Preferred Stocks		52,956,177		91,451,216		—			144,407,393

Non-Convertible Preferred Stocks
REITs – Office Property		—		1,915,200		—			1,915,200
REITs – Warehouse/Industrials		—		7,436,288		—			7,436,288
All Other Non-Convertible Preferred Stocks(a)		1,398,785		—		—			1,398,785

Total Non-Convertible Preferred Stocks		1,398,785		9,351,488		—			10,750,273

Total Preferred Stocks		54,354,962		100,802,704		—			155,157,666

| 70

Notes to Financial Statements (continued)

September 30, 2018

Strategic Income Fund (continued)

Asset Valuation Inputs (continued)


Description	Level 1		Level 2		Level 3		Total
Closed-End Investment Companies	$	3,814,317	$	—	$	—	$	3,814,317
Short-Term Investments		—		1,483,010,020		—		1,483,010,020

Total	$	502,556,486	$	7,625,285,150	$	29,484,113	$	8,157,325,749

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

(b)	Fair valued by the Fund’s adviser ($3,571,492) or fair valued by the Fund’s adviser using broker-dealer bid prices for which the inputs are unobservable to the Fund ($17,108,727).

(c)	Includes a security fair valued at zero using Level 3 inputs.

(d)	Valued using broker-dealer bid prices.

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

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of September 30, 2017 and/or September 30, 2018:

Investment Grade Bond Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2017		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	52,564,401	$	—	$	26,515	$	(5,666	)	$	—
Airlines		—		10,001		9,839		(501,456	)		—
Metals & Mining		676		13,647		—		(13,478	)		—

Total	$	52,565,077	$	23,648	$	36,354	$	(520,600	)	$	—

71 |

Notes to Financial Statements (continued)

September 30, 2018

Investment Grade 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, 2018		Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2018
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	(1,812,984	)	$	—	$	—	$	50,772,266	$	—
Airlines		(1,212,873	)		9,483,743		—		7,789,254		(501,456	)
Metals & Mining		—			—		—		845		(13,478	)

Total	$	(3,025,857	)	$	9,483,743	$	—	$	58,562,365	$	(514,934	)

Debt securities valued at $9,483,743 were transferred from Level 2 to Level 3 during the period ended September 30, 2018. At September 30, 2017, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2018, these securities were valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service did not provide a reliable price for the securities.

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

| 72

Notes to Financial Statements (continued)

September 30, 2018

Strategic Income Fund

Asset Valuation Inputs


Investments in Securities	Balance as of September 30, 2017			Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	16,947,329	(a)	$	—	$	—		$	1,785,527		$	1,947,363
Airlines		923			—		2,269			(22,847	)		—
Chemicals		18,072,420			—		—			—			—
Metals & Mining		3,281			66,810		—			(65,990	)		—
Retailers		24,046,500			—		—			—			—
Loan Participations
ABS Other		10,742,735			—		(14,643	)		(431,968	)		—
Senior Loans
Consumer Cyclical Services		7,518,416			—		(5,407	)		835,380			809,081
Common Stocks
Media		1,757,649			—		—			—			—
Oil, Gas & Consumable Fuels		7,921,777	(a)		—		(22,293,519	)		26,629,418			—
Specialty Retail		—			—		—			—			—

Total	$	87,011,030		$	66,810	$	(22,311,300	)	$	28,729,520		$	2,756,444

73 |

Notes to Financial Statements (continued)

September 30, 2018

Strategic Income Fund (continued)

Asset Valuation Inputs (continued)


Investments in Securities	Sales			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2018			Change in Unrealized Appreciation (Depreciation) from Investments Still Held at September 30, 2018
Bonds and Notes
Non-Convertible Bonds
ABS Other	$	—		$	—	$	—		$	20,680,219		$	1,785,527
Airlines		(29,284	)		505,848		(923	)		455,986			(22,847	)
Chemicals		—			—		(18,072,420	)		—			—
Metals & Mining		—			—		—			4,101			(65,990	)
Retailers		—			—		(24,046,500	)		—			—
Loan Participations
ABS Other		(1,952,317	)		—		—			8,343,807			(436,849	)
Senior Loans
Consumer Cyclical Services		(9,157,470	)		—		—			—			—
Common Stocks
Media		—			—		(1,757,649	)		—			—
Oil, Gas & Consumable Fuels		(6,885,524	)		—		(5,372,152	)(a)		—			—
Specialty Retail		—			—		—			—	(a)		—

Total	$	(18,024,595	)	$	505,848	$	(49,249,644	)	$	29,484,113		$	1,259,841

(a)	Includes a security fair valued at zero using Level 3 inputs.

A debt security valued at $505,848 was transferred from Level 2 to Level 3 during the period ended September 30, 2018. At September 30, 2017, this security was valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies. At September 30, 2018, this security was valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service did not provide a reliable price for the security.

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Notes to Financial Statements (continued)

September 30, 2018

A debt security valued at $923 was transferred from Level 3 to Level 2 during the period ended September 30, 2018. At September 30, 2017, this security was valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service did not provide a reliable price for the security. At September 30, 2018, 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.

Debt securities valued at $18,072,420 were transferred from Level 3 to Level 2 during the period ended September 30, 2018. At September 30, 2017, these securities were valued at fair value as determined in good faith by the Fund’s investment adviser as an independent pricing service did not provide a reliable price for the securities. At September 30, 2018, these securities were valued on the basis of evaluated bids furnished to the Fund by an independent pricing service in accordance with the Fund’s valuation policies.

A debt security valued at $24,046,500 was transferred from Level 3 to Level 2 during the period ended September 30, 2018. At September 30, 2017, this security was valued using broker-dealer bid prices based on inputs unobservable to the Fund as an independent pricing service was unable to price the security. At September 30, 2018, 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.

Common stocks valued at $7,129,801 were transferred from Level 3 to Level 2 during the period ended September 30, 2018. At September 30, 2017, these securities were valued at fair value as determined in good faith by the Fund’s adviser using broker-dealer bid prices for which the inputs are unobservable to the Fund. At September 30, 2018, these securities were valued on the basis of closing bid quotations 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, 2018, purchases and sales of securities (excluding short-term investments and including paydowns) were as follows:


	U.S. Government/ Agency Securities				Other Securities
Fund	Purchases		Sales		Purchases		Sales
Investment Grade Bond Fund	$	—	$	829,990,954	$	134,824,998	$	1,061,927,393
Strategic Income Fund		—		250,000,000		438,908,021		1,097,100,423

75 |

Notes to Financial Statements (continued)

September 30, 2018

5. Management Fees and Other Transactions with Affiliates.


	Percentage of Average Daily Net Assets
Fund	First $200 million			Next $1.8 billion			Next $13 billion			Next $10 billion			Over $25 billion
Investment Grade Bond Fund		0.40	%		0.40	%		0.40	%		0.38	%		0.38	%
Strategic Income Fund		0.65	%		0.60	%		0.55	%		0.54	%		0.53	%

Loomis Sayles has given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until January 31, 2019, except for Investment Grade Bond Fund which are in effect until January 31, 2020 may be terminated before then only with the consent of the Funds’ Board of Trustees and are reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.

For the year ended September 30, 2018 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 C			Class N			Class Y			Admin Class
Investment Grade Bond Fund		0.78	%		1.53	%		0.48	%		0.53	%		1.03	%
Strategic Income Fund		1.25	%		2.00	%		0.95	%		1.00	%		1.50	%

Prior to July 1, 2018, the expense limits as a percentage of average daily net assets under the expense limitation agreements for Investment Grade Bond Fund were as follows:


	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Class A			Class C			Class N			Class Y			Admin Class
Investment Grade Bond Fund		0.80	%		1.55	%		0.50	%		0.55	%		1.05	%

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Notes to Financial Statements (continued)

September 30, 2018

For the year ended September 30, 2018, the management fees for each Fund were as follows:


Fund	Gross Management Fees		Percentage of Average Daily Net Assets
Investment Grade Bond Fund	$	24,064,905		0.40	%
Strategic Income Fund		52,154,306		0.56	%

For the year ended September 30, 2018, class-specific expenses have been reimbursed as follows:


	Reimbursement¹
Fund	Class A		Class C		Class N		Class Y		Admin Class		Total
Investment Grade Bond Fund	$	228,064	$	152,404	$	—	$	878,186	$	11,732	$	1,270,386

¹	Waiver/expense reimbursements are subject to possible recovery until September 30, 2019.

No expenses were recovered for either Fund during the year ended September 30, 2018 under the terms of the expense limitation agreements.

Under the Class A Plans, each Fund pays Natixis Distribution a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the

77 |

Notes to Financial Statements (continued)

September 30, 2018

Fund’s Class A shares, as reimbursement for expenses incurred by Natixis Distribution in providing personal services to investors in Class A shares and/or the maintenance of shareholder accounts.

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

In addition, the Admin Class shares of the Funds may pay Natixis 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, 2018, the service and distribution fees for each Fund were as follows:


	Service Fees						Distribution Fees
Fund	Class A		Class C		Admin Class		Class C		Admin Class
Investment Grade Bond Fund	$	2,162,593	$	1,409,469	$	91,090	$	4,228,408	$	99,410
Strategic Income Fund		4,737,552		4,409,727		325,673		13,229,181		344,436

For the year ended September 30, 2018, Natixis Distribution refunded Investment Grade Bond Fund $8,320 and Strategic Income Fund $18,763 of prior year Admin Class service fees paid to Natixis Distribution in excess of amounts subsequently paid to securities dealers or financial intermediaries. Service and distribution fees on the Statements of Operations have been reduced by these amounts.

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Notes to Financial Statements (continued)

September 30, 2018

c. Administrative Fees. Natixis Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts, Natixis ETF Trust and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0275% of the next $30 billion and 0.0225% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust of $10 million, which is reevaluated on an annual basis.

For the year ended September 30, 2018, the administrative fees for each Fund were as follows:


Fund	Administrative Fees
Investment Grade Bond Fund	$	2,648,877
Strategic Income Fund		4,086,855

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Notes to Financial Statements (continued)

September 30, 2018

For the year ended September 30, 2018, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:


Fund	Sub-Transfer Agent Fees
Investment Grade Bond Fund	$	4,420,691
Strategic Income Fund		6,954,311


Fund	Reimbursements of Sub-Transfer Agent Fees
Investment Grade Bond Fund	$	45,879
Strategic Income Fund		85,632

Sub-transfer agent fees attributable to Class A, 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 Natixis Distribution during the year ended September 30, 2018, were as follows:


Fund	Commissions
Investment Grade Bond Fund	$	42,900
Strategic Income Fund		79,041

f. Trustees Fees and Expenses. The Trust does not pay any compensation directly to its officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distribution, Natixis or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $340,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that he attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $170,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, the chairperson of the Contract Review Committee and the chairperson of the Audit Committee each receive an additional retainer fee at the annual rate of $20,000. The chairperson of the Governance Committee receives an additional retainer fee at the annual rate of $12,000. Each Contract Review Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she

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Notes to Financial Statements (continued)

September 30, 2018

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 Natixis ETF Trust 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. As of September 30, 2018, Loomis Sayles Employees’ Profit Sharing Retirement Plan held shares of the Investment Grade Bond Fund representing 0.11% of the Fund’s net assets.

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

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

81 |

Notes to Financial Statements (continued)

September 30, 2018

For the year ended September 30, 2018, the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):


	Transfer Agent Fees and Expenses
Fund	Class A		Class C		Class N		Class Y		Admin Class
Investment Grade Bond Fund	$	840,943	$	557,690	$	3,203	$	3,209,405	$	37,396
Strategic Income Fund		1,548,869		1,436,184		1,978		4,347,028		112,509

7. Payable to Custodian Bank. The Funds’ custodian bank, State Street Bank, provides overdraft protection to the Funds in the event of a cash shortfall. Cash overdrafts bear interest at a rate per annum equal to the Federal Funds rate plus 2.00%. At September 30, 2018, the Strategic Income Fund had a payable of $7,666,023 to the custodian bank for an inadvertent overdraft due to a security sale transaction not settling as expected.

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Notes to Financial Statements (continued)

September 30, 2018

For the year ended September 30, 2018, neither Fund had borrowings under this agreement.

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

10. 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, 2018, based on management’s evaluation of the shareholder account base, the Investment Grade Bond Fund had accounts representing controlling ownership of more than 5% of the Fund’s total outstanding shares. The number of such accounts, based on accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings were as follows:


Number of 5% Account Holders	Percentage of Ownership
2		24.05	%

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

83 |

Notes to Financial Statements (continued)

September 30, 2018

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


	Year Ended September 30, 2018					Year Ended September 30, 2017
Investment Grade Bond Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	26,350,729		$	290,166,021		19,528,126		$	217,152,190
Issued in connection with the reinvestment of distributions	1,939,385			21,405,938		4,610,265			50,116,925
Redeemed	(37,379,900	)		(411,498,034	)	(41,811,856	)		(466,635,041	)

Net change	(9,089,786	)	$	(99,926,075	)	(17,673,465	)	$	(199,365,926	)

Class C
Issued from the sale of shares	2,011,124		$	22,000,351		3,086,119		$	33,663,672
Issued in connection with the reinvestment of distributions	1,080,461			11,807,321		3,067,848			32,931,990
Redeemed	(26,695,866	)		(290,792,159	)	(31,785,356	)		(350,114,834	)

Net change	(23,604,281	)	$	(256,984,487	)	(25,631,389	)	$	(283,519,172	)

Class N
Issued from the sale of shares	47,337,549		$	520,862,751		113,062,434		$	1,236,685,568
Issued in connection with the reinvestment of distributions	3,799,061			41,897,623		2,009,435			22,234,080
Redeemed	(43,651,422	)		(478,691,782	)	(12,720,056	)		(141,192,418	)

Net change	7,485,188		$	84,068,592		102,351,813		$	1,117,727,230

Class Y
Issued from the sale of shares	83,609,222		$	923,226,055		96,437,874		$	1,075,867,439
Issued in connection with the reinvestment of distributions	8,916,183			98,436,771		21,650,224			235,495,402
Redeemed	(124,671,025	)		(1,373,103,002	)	(207,134,566	)		(2,283,144,056	)

Net change	(32,145,620	)	$	(351,440,176	)	(89,046,468	)	$	(971,781,215	)

Admin Class
Issued from the sale of shares	9,244,822		$	100,929,159		658,125		$	7,267,683
Issued in connection with the reinvestment of distributions	37,178			408,621		74,152			803,727
Redeemed	(1,018,175	)		(11,215,394	)	(1,522,308	)		(16,968,085	)

Net change	8,263,825		$	90,122,386		(790,031	)	$	(8,896,675	)

Increase (decrease) from capital share transactions	(49,090,674	)	$	(534,159,760	)	(30,789,540	)	$	(345,835,758	)

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Notes to Financial Statements (continued)

September 30, 2018

11. Capital Shares (continued).


	Year Ended September 30, 2018					Year Ended September 30, 2017
Strategic Income Fund	Shares			Amount		Shares			Amount
Class A
Issued from the sale of shares	51,625,278		$	738,924,261		34,163,244		$	498,076,337
Issued in connection with the reinvestment of distributions	4,060,455			58,682,435		6,886,842			98,525,119
Redeemed	(52,391,158	)		(758,110,873	)	(77,412,456	)		(1,124,169,037	)

Net change	3,294,575		$	39,495,823		(36,362,370	)	$	(527,567,581	)

Class C
Issued from the sale of shares	2,803,621		$	41,029,278		6,318,531		$	91,629,894
Issued in connection with the reinvestment of distributions	3,309,104			48,333,624		6,434,294			92,620,761
Redeemed	(76,940,917	)		(1,116,045,348	)	(94,279,847	)		(1,380,990,323	)

Net change	(70,828,192	)	$	(1,026,682,446	)	(81,527,022	)	$	(1,196,739,668	)

Class N
Issued from the sale of shares	4,812,920		$	69,711,732		4,399,351		$	63,538,392
Issued in connection with the reinvestment of distributions	485,081			6,999,401		548,523			7,855,589
Redeemed	(2,582,475	)		(37,282,778	)	(4,286,131	)		(61,729,981	)

Net change	2,715,526		$	39,428,355		661,743		$	9,664,000

Class Y
Issued from the sale of shares	77,541,895		$	1,122,643,031		122,181,068		$	1,771,665,978
Issued in connection with the reinvestment of distributions	12,318,919			177,879,588		16,052,646			229,905,077
Redeemed	(118,518,308	)		(1,716,975,666	)	(117,951,245	)		(1,708,750,729	)

Net change	(28,657,494	)	$	(416,453,047	)	20,282,469		$	292,820,326

Admin Class
Issued from the sale of shares	1,110,070		$	16,029,203		1,318,704		$	19,155,611
Issued in connection with the reinvestment of distributions	336,388			4,845,855		441,805			6,304,627
Redeemed	(1,818,549	)		(26,240,360	)	(1,879,607	)		(27,256,147	)

Net change	(372,091	)	$	(5,365,302	)	(119,098	)	$	(1,795,909	)

Increase (decrease) from capital share transactions	(93,847,676	)	$	(1,369,576,617	)	(97,064,278	)	$	(1,423,618,832	)

12. Subsequent Event. On October 5, 2018, the Board of Trustees approved a change to the fiscal year end of Investment Grade Bond Fund from September 30 to December 31.

85 |

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Loomis Sayles Funds II and Shareholders of Loomis Sayles Strategic Income Fund and Loomis Sayles Investment Grade Bond Fund:

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Loomis Sayles Strategic Income Fund and Loomis Sayles Investment Grade Bond Fund (two of the funds constituting Loomis Sayles Funds II, hereafter collectively referred to as the “Funds”) as of September 30, 2018, the related statements of operations for the year ended September 30, 2018, the statements of changes in net assets for each of the two years in the period ended September 30, 2018, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of September 30, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended September 30, 2018 and each of the financial highlights for each of the five years in the period ended September 30, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

| 86

Report of Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 20, 2018

We have served as the auditor of one or more investment companies in the Natixis Investment Company Complex since at least 1995. We have not determined the specific year we began serving as auditor.

87 |

2018 U.S. Tax Distribution Information to Shareholders (Unaudited)


Fund	Qualifying Percentage
Investment Grade Bond Fund		6.14	%
Strategic Income Fund		8.39	%


Fund	Amount
Investment Grade Bond Fund	$	69,650,181
Strategic Income Fund		45,455,828


Fund
Investment Grade Bond Fund
Strategic Income Fund

| 88

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

Kenneth A. Drucker (1945)	Chairperson of the Board of Trustees since January 2017 Trustee since 2008 Ex Officio member of Audit Committee, Contract Review Committee and Governance Committee	Retired	51 None	Significant experience on the Board and on the boards of other business organizations (including at investment companies); executive experience (including as treasurer of an aerospace, automotive, and metal manufacturing corporation)

Edmond J. English (1953)	Trustee since 2013 Audit Committee Member and Governance Committee Member	Executive Chairman; formerly, Chief Executive Officer of Bob’s Discount Furniture (retail)	51 Director, Burlington Stores, Inc. (retail)	Significant experience on the Board and significant experience on the boards of other business organizations (including retail companies and a bank); executive experience (including at a retail company)

89 |

Trustee and Officer Information


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

INDEPENDENT TRUSTEES continued

Richard A. Goglia (1951)	Trustee since 2015 Audit Committee Member	Retired; formerly Vice President and Treasurer of Raytheon Company (defense)	51 None	Experience on the Board and executive experience (including his role as vice president and treasurer of a defense company and experience at a financial services company)

Wendell J. Knox (1948)	Trustee since 2009 Contract Review Committee Member and Governance Committee Member	Director of Abt Associates Inc. (research and consulting)	51 Director, Eastern Bank (bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on the Board and on the boards of other business organizations (including at a bank and at a property and casualty insurance firm); executive experience (including roles as president and chief executive officer of a research and consulting company)

| 90

Trustee and Officer Information


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

INDEPENDENT TRUSTEES continued

Martin T. Meehan (1956)	Trustee since 2012 Audit Committee Member	President, University of Massachusetts; formerly, Chancellor and faculty member, University of Massachusetts Lowell	51 None	Significant experience on the Board and on the boards of other business organizations; experience as President of the University of Massachusetts; government experience (including as a member of the U.S. House of Representatives); academic experience

Maureen B. Mitchell (1951)	Trustee since 2017 Contract Review Committee Member	Retired; formerly President, Global Sales and Marketing, GE Asset Management, Inc. (financial services)	51 Director, Sterling Bancorp (Bank)	Experience on the Board and on the boards of other business organizations; financial services industry and executive experience (including role as president of global sales and marketing at a financial services company)

91 |

Trustee and Officer Information


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

INDEPENDENT TRUSTEES continued

James P. Palermo (1955)	Trustee since 2016 Contract Review Committee Member	Founding Partner, Breton Capital Management, LLC (private equity); Partner, STEP Partners, LLC (private equity); formerly, Chief Executive Officer of Global Client Management of The Bank of New York Mellon Corporation	51 Director, FutureFuel Corp. (Chemicals and Biofuels)	Experience on the Board and on the boards of other business organizations; financial services industry and executive experience (including roles as chief executive officer of client management and asset servicing for a banking and financial services company)

Erik R. Sirri (1958)	Trustee since 2009 Chairperson of the Audit Committee	Professor of Finance at Babson College	51 None	Significant experience on the Board; experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience; training as an economist

Peter J. Smail (1952)	Trustee since 2009 Chairperson of the Contract Review Committee and Governance Committee Member	Retired	51 None	Significant experience on the Board; mutual fund industry and executive experience (including roles as president and chief executive officer for an investment adviser)

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Trustee and Officer Information


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

INDEPENDENT TRUSTEES continued

Cynthia L. Walker (1956)	Trustee since 2005 Chairperson of the Governance Committee and Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine	51 None	Significant experience on the Board; executive experience in a variety of academic organizations (including roles as dean for finance and administration)

INTERESTED TRUSTEES

Kevin P. Charleston³ (1965) One Financial Center Boston, MA 02111	Trustee since 2015	President, Chief Executive Officer and Chairman of the Board of Directors; formerly, Chief Financial Officer, Loomis, Sayles & Company, L.P.	51 None	Experience on the Board; continuing service as President, Chief Executive Officer and Chairman of the Board of Directors of Loomis, Sayles & Company, L.P.

93 |

Trustee and Officer Information


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

INTERESTED TRUSTEES continued

David L. Giunta⁴ (1965)	Trustee since 2011 President of Loomis Sayles Funds II since 2008; Chief Executive Officer of Loomis Sayles Funds II since 2015	President and Chief Executive Officer, Natixis Advisors, L.P., Natixis Distribution, L.P., Natixis Distribution Corporation and Chairman of the Board of Natixis Distribution Corporation	51 None	Significant experience on the Board; experience as President and Chief Executive Officer, Natixis Advisors, L.P., Natixis Distribution, L.P., Natixis Distribution Corporation and Chairman of the Board of Natixis Distribution Corporation

¹	Each trustee serves until retirement, resignation or removal from the Board. The current retirement age is 75. The position of Chairperson of the Board is appointed for a three-year term.

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

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

⁴

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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

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

Russell L. Kane (1969)	Secretary, Clerk and Chief Legal Officer	Since July 2016	Executive Vice President, General Counsel, Secretary and Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.; formerly, Chief Compliance Officer for Mutual Funds, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.

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

95 |

Trustee and Officer Information

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.

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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. Edmond J. English, Mr. Richard A. Goglia, Mr. Martin T. Meehan, 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 fees
	10/1/16- 9/30/17		10/1/17- 9/30/18		10/1/16- 9/30/17		10/1/17- 9/30/18		10/1/16- 9/30/17		10/1/17- 9/30/18		10/1/16- 9/30/17		10/1/17- 9/30/18
Loomis Sayles Funds II	$	379,111	$	345,589	$	15,384	$	4,749	$	148,072	$	65,572	$	—	$	—

Audit-related fees consist of:

2017 & 2018 — performance of agreed-upon procedures related to the Registrant’s deferred compensation plan.

Tax fees consist of:

2017 & 2018 — review of Registrant’s tax returns.

Aggregate fees billed to the Registrant for non-audit services during 2017 and 2018 were $163,456 and $70,321, 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

10/1/16-
9/30/17

10/1/17-
9/30/18

10/1/16-
9/30/17

10/1/17-
9/30/18

10/1/16-
9/30/17

10/1/17-
9/30/18

Control Affiliates

—

The following table sets forth the aggregate fees billed by the Registrant’s principal accountant for non-audit services rendered to Loomis, Sayles & Company, L.P. and Control Affiliates that provide ongoing services to the Registrant, for the last two fiscal years, including the fees disclosed in the table above.


	Aggregate Non-Audit Fees
	10/1/16- 9/30/17		10/1/17- 9/30/18
Control Affiliates	$	77,290	$	62,411

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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.



(a) (1)		Code of Ethics required by Item 2 hereof, filed herewith as Exhibit (a)(1).

(a) (2)		Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith as Exhibits (a)(2)(1) and (a)(2)(2), respectively.

(a) (3)		Not applicable.

(b)		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002 are filed herewith as Exhibit (b).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Loomis Sayles Funds II

By:		/s/ David L. Giunta

Name:

Title:

Date:

David L. Giunta

President and Chief Executive Officer

November 20, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


By:		/s/ David L. Giunta

Name:

Title:

Date:

David L. Giunta

President and Chief Executive Officer

November 20, 2018


By:		/s/ Michael C. Kardok

Name:

Title:

Date:

Michael C. Kardok

Treasurer

November 20, 2018

Name and Year of Birth

Position(s) Held
with the Trust

Term of Office¹ and
Length of Time Served

Principal Occupation(s)
During Past 5 Years²

OFFICERS OF THE TRUST
continued

Rosa Licea-Mailloux
(1976)

Chief Compliance Officer, Assistant Secretary and Anti-Money Laundering Officer

Since July 2016

Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk, Natixis Distribution Corporation, Natixis Advisors, L.P. and Natixis Distribution, L.P.; formerly, Associate General Counsel, Natixis Distribution, L.P.