SCHEDULE 14A
                                 (Rule 14a-101)

                     INFORMATION REQUIRED IN PROXY STATEMENT
                            SCHEDULE 14A INFORMATION

           Proxy Statement Pursuant to Section 14(a) of the Securities
                    Exchange Act of 1934 (Amendment No. ___)

Filed by the registrant                     [X]
Filed by a party other than the registrant  [ ]

Check the appropriate box:
[X]  Preliminary proxy statement.              [ ] Confidential, for use of the
                                                   Commission only (as permitted
                                                   by Rule 14a-6(e)(2))
[ ]  Definitive proxy statement.
[ ]  Definitive additional materials.
[ ]  Soliciting material under rule 14a-12

                             Loomis Sayles Funds II
- --------------------------------------------------------------------------------
                (Name of Registrant as Specified in Its Charter)

- --------------------------------------------------------------------------------
    (Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)

Payment of filing fee (check the appropriate box):
[X]  No fee required.
[ ]  Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

(1)    Title of each class of securities to which transaction applies:

- --------------------------------------------------------------------------------
(2)    Aggregate number of securities to which transaction applies:

- --------------------------------------------------------------------------------
(3)    Per unit price or other underlying value of transaction computed pursuant
       to Exchange Act Rule 0-11 (set forth the amount on which the filing fee
       is calculated and state how it was determined):

- --------------------------------------------------------------------------------
(4)    Proposed maximum aggregate value of transaction:

- --------------------------------------------------------------------------------
(5)    Total fee paid:

- --------------------------------------------------------------------------------

[ ]    Fee paid previously with preliminary materials.

- --------------------------------------------------------------------------------
[ ]    Check box if any part of the fee is offset as provided by Exchange Act
       Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
       paid previously.  Identify the previous filing by registration statement
       number, or the Form or Schedule and the date of its filing.

(1)    Amount previously paid:

- --------------------------------------------------------------------------------

(2)    Form, Schedule or Registration Statement No.:

- --------------------------------------------------------------------------------

(3)    Filing Party:

- --------------------------------------------------------------------------------

(4)    Date Filed:

- --------------------------------------------------------------------------------



                             LOOMIS SAYLES FUNDS II
                                  (the "Trust")
                              ONE FINANCIAL CENTER
                                BOSTON, MA 02111

                    LOOMIS SAYLES INVESTMENT GRADE BOND FUND
                                  (the "Fund")

                    NOTICE OF SPECIAL MEETING OF SHAREHOLDERS

                                 AUGUST 5, 2004

     A special meeting (the  "Meeting") of the  shareholders of the Fund will be
held at 2:00 p.m. on August 5, 2004 at the offices of the Fund's  administrator,
CDC IXIS Asset  Management  Services,  Inc.,  at 399  Boylston  Street,  Boston,
Massachusetts 02116 for the following purposes:

1.   To approve a  Distribution  Agreement  between the Trust,  on behalf of the
     Class J Shares of the Fund,  and Loomis Sayles  Distributors,  L.P. for the
     period from November 1, 2003 through April 23, 2004, as well as the release
     of escrowed fees payable thereunder;

2.   To approve a Service and Distribution Plan (the "Rule 12b-1 Plan") relating
     to Class J shares of the Fund,  as well as the  release  of  escrowed  fees
     payable thereunder; and

3.   To transact such other  business as may properly come before the Meeting or
     any adjournments thereof.


     Shareholders  of  record  at the  close of  business  on June 30,  2004 are
entitled to notice of and to vote at the Meeting and any adjourned session.

                                             By order of the Board of Trustees,

                                             JOHN E. PELLETIER, Secretary


June 30, 2004

PLEASE  RESPOND.  YOUR VOTE IS IMPORTANT.  THE BOARD OF TRUSTEES OF THE FUND HAS
APPROVED  AND  RECOMMENDS  THAT  YOU  VOTE IN  FAVOR  OF THE  PROPOSALS.  PLEASE
COMPLETE,  SIGN,  DATE AND RETURN THE ENCLOSED PROXY CARD. THIS WILL ENSURE THAT
YOUR VOTE IS COUNTED, EVEN IF YOU CANNOT ATTEND THE MEETING IN PERSON.







                             LOOMIS SAYLES FUNDS II
                                  (the "Trust")
                              ONE FINANCIAL CENTER
                                BOSTON, MA 02111

                    LOOMIS SAYLES INVESTMENT GRADE BOND FUND
                                  (the "Fund")

                                 PROXY STATEMENT


     The  Trustees of the Trust (the  "Trustees")  are  soliciting  proxies from
Class J  shareholders  of the Fund in  connection  with a special  meeting  (the
"Meeting") of  shareholders  of the Fund. The Meeting has been called to be held
at 2:00 p.m. on August 5, 2004 at the offices of the Fund's  administrator,  CDC
IXIS Asset Management Services, Inc., 399 Boylston Street, Boston, Massachusetts
02116. The Meeting notice, this Proxy Statement and proxy card are being sent to
Class J shareholders of record as of June 30, 2004 (the "Record Date") beginning
on or about June 30,  2004.  Please  read this Proxy  Statement  and keep it for
future reference. THE FUND HAS PREVIOUSLY SENT ITS ANNUAL REPORT DATED SEPTEMBER
30, 2003 AND ITS SEMI-ANNUAL REPORT DATED MARCH 31, 2004 TO ITS SHAREHOLDERS.  A
COPY OF THE FUND'S  MOST  RECENT  ANNUAL  REPORT AND  SEMI-ANNUAL  REPORT MAY BE
OBTAINED  WITHOUT  CHARGE BY WRITING TO LOOMIS  SAYLES  FUNDS,  P.O. BOX 219594,
KANSAS CITY, MISSOURI 61421-9594 OR BY CALLING (800) 633-3330. IN ADDITION,  THE
FUND'S MOST RECENT  ANNUAL  REPORT AND  SEMI-ANNUAL  REPORT ARE AVAILABLE ON ITS
WEBSITE  AT  WWW.CDCNVESTFUNDS.COM.  (CLICK  ON "FUND  INFORMATION"  AND THEN ON
"FINANCIAL REPORTS.")

     The only items of business  that the  Trustees  expect will come before the
Meeting  are (1)  approval of a  Distribution  Agreement  between the Trust,  on
behalf of the Class J shares of the Fund, and Loomis Sayles  Distributors,  L.P.
(the  "Distribution  Agreement")  for the period from  November 1, 2003  through
April 23, 2004,  and the release of escrowed  fees payable  thereunder;  and (2)
approval of a Service and Distribution  Plan (the "Rule 12b-1 Plan") relating to
Class J Shares of the Fund and the release of escrowed fees payable thereunder.

                                       1




OVERVIEW OF THE PROPOSALS

     The proposals  seek approval of the  Distribution  Agreement and Rule 12b-1
Plan  (each as  defined  below)  for the  Class J Shares  of the  Loomis  Sayles
Investment Grade Bond Fund (the "Fund"),  and the release from escrow of certain
payments  made  under  the  Distribution  Agreement  and Rule  12b-1  Plan.  The
approvals are being sought because,  although  neither the officers nor Trustees
of the Trust  intended  for the  Distribution  Agreement  and Rule 12b-1 Plan to
expire on October  31,  2003,  the records of the Fund are unclear as to whether
the  Distribution  Agreement  and Rule  12b-1 Plan were  renewed  for the period
beginning November 1, 2003.

A VOTE FOR THE PROPOSALS:

o  WILL NOT CHANGE THE FEES AND EXPENSES AS DESCRIBED IN THE FUND'S PROSPECTUS
o  WILL NOT CHANGE THE FUND'S NET ASSET VALUE (NAV)
o  WILL NOT CHANGE THE INVESTMENT STRATEGY OR MANAGEMENT OF THE FUND

     This proxy  solicitation  will not result in any  additional  costs to fund
shareholders  or brokers,  as the costs of presenting  these  proposals  will be
borne entirely by Loomis Sayles Distributors,  L.P. (the "U.S. Distributor") and
its affiliates.

     On June 12,  2003,  the Board of  Trustees  of the  Trust  met to  consider
distribution  arrangements  for  proposed new share  classes for several  Loomis
Sayles Funds, including the Fund. The written materials sent to the Board, which
explain the  proposals to be considered at the Board  meeting,  expressly  noted
that, although the new classes would be distributed by CDC IXIS Asset Management
Distributors,  L.P.,  the  Class J  shares  of the  Fund  would  continue  to be
distributed  by  the  U.S.   Distributor  under  the  terms  of  the  existing
distribution agreement (the "Distribution Agreement") with the U.S. Distributor.
The  Board  materials  also  noted  that the fees  payable  under  the  existing
distribution  and  service  plan (the "Rule  12b-1  Plan") and  front-end  sales
charges paid to the U.S. Distributor for the sale of Class J shares would remain
unchanged.   Based  on  these  materials,  it  was  clear  that  there  were  no
expectations of any changes to the existing  distribution  arrangements  for the
Class J shares of the Fund.  However,  due to an administrative  oversight,  the
formal records of the Fund are unclear as to whether the Distribution  Agreement
and Rule 12b-1 Plan were renewed.  If it were determined  that the  Distribution
Agreement  and Rule 12b-1  Plan were not  renewed,  each  would have  expired on
October 31, 2003.

     Given the lack of clarity regarding the renewal, the Board of Trustees,  at
meetings  on April 23, 2004 and on June 4, 2004,  concluded  that it should seek
shareholder approval for the continuance of the Distribution  Agreement and Rule
12b-1  Plan  so  as  to  remove  any  doubt  regarding  the  validity  of  these
arrangements.  Specifically,  the Board voted:  (i) to approve the  Distribution
Agreement,  and the release of escrowed fees payable thereunder,  for the period
from November 1, 2003 through April 23, 2004,  subject to shareholder  approval;
(ii) to recommend that shareholders approve the Distribution Agreement,  and the
release of escrowed  fees payable  thereunder,  for the period from  November 1,
2003  through  April 23,  2004;  (iii) to approve the Rule 12b-1  Plan,  and the
release of escrowed fees payable  thereunder,  for the period beginning November
1,  2003,  subject  to  shareholder   approval;   and  (iv)  to  recommend  that
shareholders  approve  the Rule 12b-1 Plan,  and the  release of  escrowed  fees
payable  thereunder,  for the period beginning  November 1, 2003. An affirmative
vote by  shareholders  at the Meeting in favor of each  proposal will ratify the
U.S. Distributor's

                                       2


intention,  and the Board's  understanding,  that the Distribution Agreement and
Rule 12b-1 Plan would  continue  beyond  October 31, 2003.  Pending  shareholder
approval  of these  proposals,  the U.S.  Distributor  will  place in escrow the
portion of the sales charges payable under the Distribution  Agreement  retained
by the U.S.  Distributor  for the period from November 1, 2003 through April 23,
2004, and the Distribution Fees (as defined below under "Proposal 2: Approval of
a Rule 12b-1 Plan;  Description  of the Rule 12b-1 Plan") payable under the Rule
12b-1 Plan for the period  beginning  November 1, 2003 and ending on the date of
shareholder approval (or rejection) of proposal 2.

     The U.S.  Distributor  and the Board of Trustees  recognize that this proxy
statement  would not be  necessary if the record more  clearly  reflected  their
mutual  belief  that the  Distribution  Agreement  and Rule 12b-1 Plan would not
expire on October 31, 2003.  Although it is regrettable that shareholders may be
inconvenienced  by this proxy statement,  the U.S.  Distributor and the Board of
Trustees  believe  that, in light of the unclear  record,  it is prudent to seek
shareholder  approval of these distribution  arrangements.  The U.S. Distributor
and the Board of Trustees  note that,  at all times during the relevant  period,
the  prospectus  for Class J shares of the Fund clearly  indicated  that Class J
shareholders  would bear the sales charges and  Distribution  Fees payable under
the Distribution Agreement and Rule 12b-1 Plan.


I.       PROPOSAL 1:       APPROVAL OF A DISTRIBUTION AGREEMENT

     As noted above, the Board of Trustees of the Trust, including a majority of
the Trustees who are not interested persons of the U.S. Distributor or the Trust
(the "Independent  Trustees"),  is recommending that the Class J shareholders of
the Fund approve the  Distribution  Agreement  and the release of escrowed  fees
payable  thereunder for the period from November 1, 2003 through April 23, 2004.
If the Class J shareholders of the Fund approve the proposal,  the  Distribution
Agreement will be considered effective for the above-mentioned  period. On April
23, 2004, the Board approved a new Distribution Agreement (the "New Distribution
Agreement") with the U.S. Distributor  effective April 23, 2004 through June 30,
2004,  and on June 4,  2004,  the  Board  approved  the  continuance  of the New
Distribution  Agreement for another one-year period commencing July 1, 2004. The
terms of the Distribution Agreement being submitted for shareholder approval are
the same as the terms of the  Distribution  Agreement  approved  by the Board on
April 23, 2004 and which is currently in effect.

EVALUATION BY THE BOARD OF TRUSTEES

     At its June 4, 2004 meeting, the Board of Trustees of the Trust,  including
the  Independent  Trustees,  voted to recommend that Class J shareholders of the
Fund approve the  Distribution  Agreement  for the period from  November 1, 2003
through  April 23,  2004 and the release of escrowed  fees  payable  thereunder.
Shareholder  approval is not required  for the New  Distribution  Agreement  and
sales charges  payable under the New  Distribution  Agreement  have not been and
will not be escrowed. In connection with its review of the Agreement,  the Board
requested  and  reviewed,  with the  assistance  of counsel  to the  Independent
Trustees, materials furnished by the U.S. Distributor.  These materials included
financial  statements  as well as other written  information  regarding the U.S.
Distributor   and   its   personnel,   operations,   financial   condition   and
profitability. The Board also

                                       3


considered  comparative fee information  concerning other  investment  companies
distributed  in Japan.  The Board  concluded that the U.S.  Distributor  has the
resources,  staff,  knowledge  and  commitment  to  carry  out its  distribution
obligations  and has  adequate  compliance  procedures  in place with respect to
sales practices.

DESCRIPTION OF DISTRIBUTION AGREEMENT

     The following  paragraphs  briefly  describe the terms of the  Distribution
Agreement,  which are the same as those of the new Distribution Agreement. For a
complete understanding of the Distribution  Agreement,  please refer to the form
of Distribution Agreement provided as Appendix A.

     The U.S. Distributor serves as the general distributor of Class J shares of
the Fund pursuant to an Amended and Restated  Distribution  Agreement  initially
dated December 7, 1999. Under the Distribution  Agreement,  the U.S. Distributor
has the right to purchase Class J shares of the Fund from the Trust at their net
asset  value  and to sell  such  Class J shares  to the  public  against  orders
therefor at the net asset value of the shares plus any applicable  sales charge
as set forth in the current  prospectus of the Fund. The U.S.  Distributor shall
use  reasonable  efforts to sell Class J shares of the Fund but is not obligated
to sell any specific number of shares.

     For its services as general  distributor of the Class J shares of the Fund,
the U.S.  Distributor  receives a distribution  fee at the rate set forth in the
Rule 12b-1 Plan  (discussed  below) and is entitled to retain the sales  charges
collected on the sales of Class J shares of the Fund.  For the fiscal year ended
September 30, 2003, the U.S.  Distributor  received  $1,196,863 in  underwriting
commissions in conjunction with the sale of Class J shares of the Fund. The U.S.
Distributor  bears  the cost of  making  information  about  the Fund  available
through  advertising  and other means and the cost of  printing  and mailing the
prospectus  to  persons  other  than  shareholders.  The  Fund  pays the cost of
registering and qualifying the Class J shares under state and federal securities
laws and distributing its prospectus to existing shareholders.

     The Distribution  Agreement,  like the New Distribution  Agreement,  states
that it is to continue in effect for successive one-year periods,  provided that
each such continuance is specifically  approved (i) by the vote of a majority of
the  entire  Board  of  Trustees  and  (ii)  by the  vote of a  majority  of the
Independent  Trustees,  in each case cast in person at a meeting called for that
purpose.  The Distribution  Agreement may be terminated at any time with respect
to the Fund on 60 days' written notice to the U.S.  Distributor  without payment
of any penalty by vote of a majority of the Trust's Board of Trustees or by vote
of a majority of the outstanding voting securities of the Fund's Class J shares.
The  Distribution  Agreement  also states that it may be  terminated by the U.S.
Distributor on 90 days' written notice to the Trust. The Distribution  Agreement
was replaced by the New Distribution Agreement on April 23, 2004.

     Pending   shareholder  vote  on  the  Distribution   Agreement,   the  U.S.
Distributor will hold in escrow the amounts of the sales charges retained by the
U.S. Distributor for sales of the Class J shares during the period from November
1, 2003  through  April 23,  2004,  which  total  approximately  $514,619.  Upon
shareholder approval,  these escrowed sales charges will be released to the U.S.
Distributor. If shareholders do not approve the proposal, sales charges escrowed
for the period from  November 1, 2003 through April 23, 2004 will be returned to
shareholders who purchased shares during that period. However, as noted

                                       4


above, sales charges payable under the New Distribution  Agreement have not been
and will not be escrowed  and will  continue to be paid to the U.S.  Distributor
whether or not the proposal is approved.

THE TRUSTEES OF THE TRUST UNANIMOUSLY RECOMMEND THAT THE CLASS J SHAREHOLDERS OF
THE FUND VOTE TO APPROVE THE DISTRIBUTION  AGREEMENT AND THE RELEASE OF ESCROWED
FEES PAYABLE THEREUNDER.


II.      PROPOSAL 2:       APPROVAL OF A RULE 12B-1 PLAN

     As noted above, the Board of Trustees of the Trust, including a majority of
the Independent Trustees,  also is recommending that Class J shareholders of the
Fund  approve  the Rule 12b-1  Plan and the  release of  escrowed  fees  payable
thereunder.  If the Class J shareholders  of the Fund approve the proposal,  the
Rule 12b-1 Plan will be effective for the period beginning  November 1, 2003. No
changes  in the terms of the Rule  12b-1 Plan from the Plan in effect on October
31, 2003 are being proposed.

EVALUATION BY THE BOARD OF TRUSTEES

     At its June 4, 2004 meeting, the Board of Trustees of the Trust,  including
the  Independent  Trustees,  voted to approve the Rule 12b-1 Plan for the period
beginning November 1, 2003 and the release of escrowed fees payable  thereunder,
subject to shareholder  approval.  In addition,  at that meeting,  the Trustees,
including the Independent Trustees, voted to approve the continuance of the Rule
12b-1  Plan for the  one-year  period  beginning  July 1,  2004,  subject to the
approval  by  shareholders  of the  Rule  12b-1  Plan for the  period  beginning
November 1, 2003. Finally, the Trustees also voted to recommend that the Class J
shareholders of the Fund approve the Rule 12b-1 Plan and the release of escrowed
fees payable  thereunder.  In connection with its review of the Rule 12b-1 Plan,
the Board requested and reviewed,  with the assistance of its own legal counsel,
materials   furnished  by  the  U.S.   Distributor.   These  materials  included
information  about how the  distribution and service fees charged under the Rule
12b-1   Plan   create   an   incentive   for   financial    intermediaries   and
Japanese-licensed securities companies to promote the sale of Class J shares and
help retain  shareholders  in the Fund.  The Board  considered  other factors as
well, including the merits of possible alternative plans; the  interrelationship
between  the Rule  12b-1 Plan and the  activities  of other  persons,  including
whether any payments by the Fund are made to such other persons as to constitute
the indirect financing of the distribution of Fund shares; the possible benefits
of the Rule 12b-1 Plan to any other person  relative to those  expected to inure
to the Fund;  the effect of the Rule 12b-1 Plan on  existing  shareholders;  and
whether the Rule 12b-1 Plan has produced the  anticipated  benefits for the Fund
and its Class J shareholders. Based on its consideration of these factors, among
others,  the Board  concluded  that the Rule 12b-1 Plan is reasonably  likely to
benefit  fund  shareholders  and that the amounts paid under the Rule 12b-1 Plan
are reasonable in light of the distribution services that are performed.

                                       5



DESCRIPTION OF THE RULE 12B-1 PLAN

     The following paragraphs briefly describe the terms of the Rule 12b-1 Plan.
For a complete understanding of the Rule 12b-1 Plan, please refer to the form of
Rule 12b-1 Plan provided as Appendix B.

     The Trust has adopted a service and  distribution  plan under Rule 12b-1 of
the Investment Company Act of 1940, as amended,  that allows the Fund to pay the
U.S. Distributor,  for its services as general distributor of the Class J shares
of the Fund, a monthly  service fee at an annual rate not to exceed 0.25% of the
Fund's  average  net  assets  attributable  to  Class  J  shares  and a  monthly
distribution fee (the "Distribution  Fee") at an annual rate not to exceed 0.50%
of the Fund's average net assets  attributable to Class J shares. For the fiscal
year ended  September 30, 2003, the Fund paid the U.S.  Distributor  $661,138 in
service fees and $1,322,275 in Distribution Fees (which collectively represented
0.75% of the average net assets of the Fund).

     The U.S.  Distributor  may pay all or any  portion  of the  service  fee to
securities  dealers  or  other  organizations   (including   affiliates  of  the
Distributor) as service fees pursuant to agreements with such  organizations for
providing  personal  services  to  investors  in the  Class J shares of the Fund
and/or the maintenance of shareholder accounts. The U.S. Distributor may pay all
or  any  portion  of  the  Distribution  Fee  to  securities  dealers  or  other
organizations  (including  affiliates of the U.S.  Distributor)  as commissions,
asset-based  sales  charges or other  compensation  with  respect to the sale of
Class  J  shares  of  the  Fund,  and  may  retain  all or  any  portion  of the
Distribution  Fee  as  compensation  for  the  U.S.  Distributor's  services  as
principal underwriter of the Class J shares.

     The Rule  12b-1  Plan is to  continue  in effect  for  successive  one-year
periods, provided that each such continuance is specifically approved (i) by the
vote of a majority  of the entire  Board of  Trustees  and (ii) by the vote of a
majority of the Independent  Trustees,  in each case cast in person at a meeting
called for that  purpose.  The Board has  approved the  continuance  of the Rule
12b-1  Plan for the  one-year  period  beginning  July 1,  2004,  although  such
continuance is contingent upon shareholder  approval of this proposal.  The Rule
12b-1 Plan may be  terminated  at any time with  respect to the Fund on 60 days'
written notice to the U.S.  Distributor by vote of a majority of the Independent
Trustees,  or by vote of a majority of the outstanding  voting securities of the
Fund's Class J shares.  The Board of Trustees reviews  quarterly written reports
of costs incurred under the Rule 12b-1 Plan.

     Pending shareholder  approval of the Rule 12b-1 Plan, the U.S.  Distributor
will hold in escrow the  Distribution  Fees paid by the Class J shareholders  of
the Fund for the period from  November  1, 2003 until such time as  shareholders
approve the proposal.  Upon shareholder  approval,  these escrowed  Distribution
Fees,  which for the period  from  November  1, 2003  through May 31, 2004 total
approximately  $1,013,317,   will  be  released  to  the  U.S.  Distributor.  If
shareholders do not approve the proposal, the escrowed Distribution Fees will be
paid to the Fund,  the Rule  12b-1  Plan will be  deemed to have  terminated  on
October 31, 2003 and the Fund no longer will be making  payments  under the Rule
12b-1 Plan. If the Fund is unable to make payments under the Rule 12b-1 Plan, it
is possible that brokers that  currently are supported by those  payments may no
longer

                                       6


continue  to  provide  the  same  level  of  shareholder  services  to  Class  J
shareholders.

THE TRUSTEES OF THE TRUST UNANIMOUSLY RECOMMEND THAT THE CLASS J SHAREHOLDERS OF
THE FUND VOTE TO APPROVE THE RULE 12B-1 PLAN AND THE  RELEASE OF  ESCROWED  FEES
PAYABLE THEREUNDER.


III.     OTHER INFORMATION

ADVISER, PRINCIPAL UNDERWRITER AND ADMINISTRATOR.

     Loomis,  Sayles &  Company,  L.P.  is the  investment  adviser to the Fund.
Loomis Sayles  Distributors,  L.P. is the principal  underwriter for the Class J
shares of the Fund.  CDC IXIS Asset  Management  Distributors,  L.P.  ("CDC IXIS
Distributors"), an affiliate of Loomis, Sayles & Company, L.P., is the principal
underwriter  for the Fund's other classes of shares.  CDC IXIS Asset  Management
Services, Inc. ("CDC IXIS Services"),  an affiliate of Loomis, Sayles & Company,
L.P. and Loomis Sayles Distributors,  L.P., is the Fund's administrator and also
serves as the  transfer  and  shareholder  servicing  agent for the Fund's other
share classes. The address of Loomis,  Sayles & Company,  L.P. and Loomis Sayles
Distributors,  L.P. is One Financial Center,  Boston,  Massachusetts  02111. The
address of CDC IXIS  Distributors  and CDC IXIS Services is 399 Boylston Street,
Boston, Massachusetts 02116.

     Because  they  hold  positions  with  the  U.S.   Distributor   and/or  its
affiliates,  certain  of the  Fund's  Trustees  may be deemed to have a material
direct or  indirect  interest  in the  subject  matter of the  Proposals.  These
Trustees are (i) Mr.  Peter S. Voss,  who is Director of CDC IXIS  Services,  an
affiliate  of the  U.S.  Distributor;  Director  of CDC  IXIS  Asset  Management
Distribution Corporation ("CDC IXIS Distribution Corporation"),  an affiliate of
the  U.S.  Distributor;  Director  and  Chairman  of CDC IXIS  Asset  Management
Associates,  Inc.,  an  affiliate of the U.S.  Distributor;  Director of Loomis,
Sayles & Company,  Inc., an affiliate of the U.S. Distributor;  and Director and
Member of the Executive Board of CDC IXIS Asset  Management,  the parent company
of the  U.S.  Distributor;  (ii)  Mr.  Robert  J.  Blanding,  who is  President,
Chairman,  Director  and Chief  Executive  Officer of Loomis,  Sayles & Company,
L.P.; and (iii) Mr. John T. Hailer, who is Director and Executive Vice President
of CDC IXIS  Distribution  Corporation and President and Chief Executive Officer
of CDC IXIS  Distributors.  The Board  currently  consists  of three  interested
Trustees (listed above) and eight Independent Trustees.

OUTSTANDING SHARES AND SIGNIFICANT SHAREHOLDERS.

     Class J  shareholders  of record at the close of  business on June 30, 2004
are entitled to notice of and to vote at the Meeting and any adjourned  session.
Appendix C to this Proxy Statement lists for the Fund the total number of shares
of Class J outstanding as of June 10, 2004. It also  identifies  holders,  as of
June 10,  2004,  of more  than 5% of Class J shares of the  Fund,  and  contains
information  about  the  shareholdings  in the  Fund  of the  Trustees  and  the
executive officers of the Fund as of June 10, 2004.

                                       7



INFORMATION ABOUT THE OWNERSHIP OF THE DISTRIBUTOR

     THE DISTRIBUTOR. Loomis Sayles Distributors, L.P., the U.S. Distributor, is
a limited  partnership  organized  under the laws of the State of Delaware.  Its
sole  general  partner,  Loomis,  Sayles &  Company,  Inc.,  is a  wholly  owned
subsidiary of CDC IXIS Asset  Management  Holdings,  Inc. ("CDC IXIS Holdings"),
which in turn is a wholly owned  subsidiary of CDC IXIS Asset  Management  North
America,  L.P. ("CDC IXIS North America").  CDC IXIS North America is ultimately
owned by three large affiliated French financial  services firms: the Caisse des
Depots et Consignations  ("CDC"); the Caisse Nationale des Caisses d'Epargne,  a
financial  institution owned by CDC and by affiliated French savings banks known
as the Caisses d'Epargne; and by CNP Assurances, a leading French life insurance
company.  The registered office of CDC is 56, rue de Lille, 75007 Paris, France.
The  registered  address of Caisse  Nationale  des Caisses  d'Epargne  is 5, rue
Masseran,  75007 Paris,  France.  The registered address of CNP Assurances is 4,
place Raoul Dautry, 75015 Paris, France.

     The 15 principal  subsidiary or affiliated  asset  management  firms of CDC
IXIS North America  collectively had approximately  $148 billion in assets under
management or administration as of December 31, 2003.

     The principal executive officer of Loomis Sayles Distributors, L.P. is John
F. Gallagher. Mr. Gallagher also is a Director and the Head of Sales & Marketing
at Loomis,  Sayles & Company, L.P. The address of Loomis, Sayles & Company, Inc.
and Mr.  Gallagher is One Financial  Center,  Boston,  Massachusetts  02111. The
address of CDC IXIS Holdings and CDC IXIS North America is 399 Boylston  Street,
Boston, Massachusetts 02116.

INFORMATION ABOUT PROXIES AND THE CONDUCT OF THE MEETING

     SOLICITATION  OF PROXIES.  None of the costs of the Meeting,  including the
costs of soliciting  proxies,  if any, will be borne by the Fund. All such costs
will  be paid by the  U.S.  Distributor  and  its  affiliates.  Proxies  will be
solicited  primarily by mailing this Proxy  Statement  and its  enclosures,  but
proxies  may  also be  solicited  through  further  mailings,  telephone  calls,
personal  interviews  or e-mails by officers of the Fund, by employees or agents
of the U.S. Distributor or CDC IXIS North America and its affiliated  companies,
and by  Japanese  securities  dealers in Japan that  promote the sale of Class J
shares of the Fund.

     VOTING  PROCESS.  You can vote by (i) completing and returning the enclosed
proxy card; or (ii) casting your vote in person at the Meeting.

     Shareholders  who owned  Class J shares of the Fund on the Record  Date are
entitled to vote at the Meeting.  Class J Shareholders  are entitled to cast one
vote for each share,  and a  proportionate  fractional  vote for each fractional
share,  owned on the Record Date. If you choose to vote by mail,  and you are an
individual account owner,  please sign exactly as your name appears on the proxy
insert.  Either  owner of a joint  account  may sign the proxy  insert,  but the
signer's  name must  exactly  match the name that  appears  on the card.  Shares
represented  by duly executed and timely  proxies will be voted as instructed on
the proxy. If no instructions are given, the proxy will be voted in favor of the

                                       8


relevant proposal. If you mail the enclosed proxy and no choice is indicated for
a proposal listed in the attached Notice of Meeting, your proxy will be voted in
favor of that proposal.  At any time before it has been voted, your proxy may be
revoked in one of the following ways: (i) by sending a signed, written letter of
revocation  to  the  Secretary  of the  Trust,  (ii)  by  properly  executing  a
later-dated  proxy, or (iii) by attending the Meeting,  requesting return of any
previously delivered proxy and voting in person.

     TABULATION OF PROXIES. Votes cast in person or by proxy at the Meeting will
be counted by persons  appointed  by the Fund as tellers  for the  Meeting  (the
"Tellers"). Forty percent (40%) of the Class J shares of the Fund outstanding on
the Record Date,  present in person or represented by proxy,  constitutes quorum
for the transaction of business by the  shareholders of the Fund at the Meeting.
In  determining  whether  quorum is  present,  the  Tellers  will  count  shares
represented  by proxies that reflect  abstentions,  and "broker  non-votes,"  as
shares that are present and entitled to vote. Since these shares will be counted
as present,  but not as voting in favor of any proposal,  these shares will have
the same effect as if they cast votes against the proposal.  "Broker  non-votes"
are shares  held by brokers  or  nominees  as to which (i) the broker or nominee
does not have discretionary  voting power and (ii) the broker or nominee has not
received  instructions from the beneficial owner or other person who is entitled
to instruct how the shares will be voted.

     REQUIRED  VOTE. The vote required to approve each proposal is the lesser of
(1) 67% of the Class J shares of the Fund that are  present at the  Meeting,  if
the holders of more than 50% of the Class J shares of the Fund outstanding as of
the Record Date are present or represented by proxy at the Meeting,  or (2) more
than 50% of the Class J shares of the Fund  outstanding  on the Record Date.  If
the required vote is not obtained for any  proposal,  the Trustees will consider
what other actions to take in the best interests of the Fund.

     ADJOURNMENTS; OTHER BUSINESS. In the event that a quorum is not present for
purposes of acting on a proposal,  or if sufficient votes in favor of a proposal
are not  received by the time of the Meeting,  the persons  named as proxies may
propose  that the  Meeting  be  adjourned  one or more  times to permit  further
solicitation of proxies.  The persons named as proxies will vote in favor of any
such  adjournment  all  proxies  that they are  entitled to vote in favor of any
proposal  that has not yet then been  adopted.  They will vote  against any such
adjournment  any proxy that directs them to vote against each  proposal that has
not yet then been  adopted.  They will not vote any proxy that  directs  them to
abstain from voting on a proposal.  The adjournment of a Meeting will not affect
any proposals approved prior to the adjournment.

     The Meeting has been called to transact any business  that  properly  comes
before it. The only business  that  management of the Fund intends to present or
knows that others will present are Proposals 1 and 2,  described  above.  If any
other matters properly come before the Meeting, and on all matters incidental to
the  conduct of the  Meeting,  the persons  named as proxies  intend to vote the
proxies in accordance with their judgment, unless the Secretary of the Trust has
previously received written contrary  instructions from the shareholder entitled
to vote the shares.

     SHAREHOLDER PROPOSALS AT FUTURE MEETINGS. The Trust does not hold annual or
other regular meetings of shareholders. Shareholder proposals to be presented at
any future meeting of  shareholders  of the Fund must be received by the Fund in
writing a reasonable  amount of time before the Trust solicits  proxies for that

                                       9


meeting, in order to be considered for inclusion in the proxy materials for that
meeting.





                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]


                                       10




                                   APPENDIX A

                              AMENDED AND RESTATED
                             DISTRIBUTION AGREEMENT

     AGREEMENT  made this 7th day of December 1999 by and between  LOOMIS SAYLES
FUNDS,  a  Massachusetts   business  trust  (the  "Trust"),  and  LOOMIS  SAYLES
DISTRIBUTORS, L.P., a Delaware limited partnership (the "Distributor").

                                   WITNESSETH:

     In consideration of the premises and covenants hereinafter  contained,  the
Trust and the Distributor agree as follows:

     1.  DISTRIBUTOR.  The Trust  hereby  appoints  the  Distributor  as general
distributor  of shares of beneficial  interest of each series  ("Series") of the
Trust ("Series  shares") during the term of this  Agreement.  The Trust reserves
the right,  however,  to refuse at any time or times to sell any  Series  shares
hereunder for any reason deemed adequate by the Board of Trustees of the Trust.

     2. SALE AND PAYMENT.  Under this agreement,  the following provisions shall
apply with respect to the sale of and payment for Series shares:

     (a)  The Distributor shall have the right, as principal, to purchase Series
          shares from the Trust at their net asset value and to sell such shares
          to the  public  against  orders  Therefore  at such net  asset  value,
          together  with,  in the case of the Series shares of the Loomis Sayles
          Managed  Bond  Fund,  Class J shares of the Loomis  Sayles  Investment
          Grade Bond Fund,  and Class A shares of the Loomis  Sayles  Aggressive
          Growth  Fund  and  the  Loomis  Sayles  Global  Technology  Fund,  the
          applicable sales charge,  as set forth in the current  prospectus (es)
          of the Trust relating to the Series shares of such Series.

     (b)  Prior to the time of delivery of any shares by the Trust to, or on the
          order of, the  Distributor,  the Distributor  shall pay or cause to be
          paid to the  Trust or to its  order an  amount  in  Boston or New York
          clearing  house funds equal to the  applicable net asset value of such
          shares.

3.   FEE.  For its services as general  distributor  of the Series  shares,  the
     Trust shall pay to the  Distributor  on behalf of the Series a distribution
     fee at the  rate  and  upon  the  terms  and  conditions  set  forth in the
     Distribution Plan(s) attached as Exhibit A hereto, and as amended from time
     to time.  The  Distribution  Fee shall be accrued daily and paid monthly to
     the Distributor as soon as practicable  after the end of the calendar month
     in which it accrues,  but in any event within five business days  following
     the last day of the month. In addition,  the Distributor shall, in the case
     of Series shares of the Loomis Sayles Managed Bond Fund,  Class J shares of
     the Loomis  Sayles  Investment  Grade Bond Fund,  and Class A shares of the
     Loomis  Sayles   Aggressive  Growth  Fund  and  the  Loomis  Sayles  Global
     Technology Fund, be entitled to retain any applicable sales charge,  as set
     forth in the current prospectus (es) of the Trust relating to Series shares
     of such Series.

                                       11




4.   PUBLIC  OFFERING  PRICE.  The public  offering price shall be the net asset
     value of Series  shares,  together  with,  in the case of the Loomis Sayles
     Managed Bond Fund,  Class J shares of the Loomis  Sayles  Investment  Grade
     Bond Fund, and Class A shares of the Loomis Sayles  Aggressive  Growth Fund
     and the Loomis Sayles Global  Technology Fund, the applicable sales charge,
     as set forth in the current  prospectus  (es) of the Trust  relating to the
     Series shares of such Series. The net asset value of Series shares shall be
     determined  in  accordance   with  the  provisions  of  the  agreement  and
     declaration  of trust and by-laws of the Trust and the  current  prospectus
     (es) of the Trust relating to the Series shares.

5.   TRUST  ISSUANCE OF SERIES  SHARES.  The delivery of Series  shares shall be
     made promptly by a credit to a shareholder's  open account for the relevant
     Series. The Trust reserves the right (a) to issue Series shares at any time
     directly  to the  shareholders  of the Series as a stock  dividend or stock
     split,  (b) to issue to such  shareholders  Series  shares,  or  rights  to
     subscribe  to Series  shares,  as all or part of any  dividend  that may be
     distributed to shareholders of the Series or as all or part of any optional
     or  alternative  dividend that may be distributed  to  shareholders  of the
     Series,  and (c) to sell  Series  shares  in  accordance  with any  current
     applicable prospectus of the Trust relating to the Series shares.

6.   REPURCHASE.  The Distributor shall act as agent for the Trust in connection
     with the  repurchase  of Series  shares by the Trust to the extent and upon
     the terms and  conditions  set forth in the current  applicable  prospectus
     (es) of the Trust  relating to the Series  shares,  and the Trust agrees to
     reimburse  the  Distributor,  from  time  to  time  upon  demand,  for  any
     reasonable expenses incurred in connection with such repurchases of shares.

7.   UNDERTAKING  REGARDING SALES. The Distributor shall use reasonable  efforts
     to sell Series shares but does not agree hereby to sell any specific number
     of Series shares and shall be free to act as  distributor  of the shares of
     other investment  companies.  Series shares will be sold by the Distributor
     only against orders  therefor.  The  Distributor  shall not purchase Series
     shares from anyone except in accordance with Sections 2 and 6 and shall not
     take "long" or "short" positions in Series shares contrary to the agreement
     and declaration of trust or by-laws of the Trust.

8.   COMPLIANCE.  The  Distributor  shall  conform to the  Conduct  Rules of the
     National  Association of Securities Dealers,  Inc. ("NASD") and the sale of
     securities  laws  of any  jurisdiction  in  which  it  sells,  directly  or
     indirectly,  any  Series  shares.  The  Distributor  agrees to make  timely
     filings,  with the  Securities  and  Exchange  Commission  (the  "SEC")  in
     Washington,  D.C., the NASD and such other regulatory authorities as may be
     required,  of any sales literature  relating to the Series and intended for
     distribution  to  prospective  investors.  The  Distributor  also agrees to
     furnish  to the  Trust  sufficient  copies  of any  agreements  or plans it
     intends to use in  connection  with any sales of Series  shares in adequate
     time for the  Trust to file and  clear  them  with the  proper  authorities
     before they are put in use (which the Trust  agrees to use its best efforts
     to do as expeditiously as reasonably  possible),  and not to use them until
     so filed and cleared.

                                       12



9.   REGISTRATION  AND  QUALIFICATION  OF SERIES  SHARES.  The  Trust  agrees to
     execute  such  papers  and to do such acts and things as shall from time to
     time  be  reasonably  requested  by the  Distributor  for  the  purpose  of
     qualifying  and  maintaining  qualification  of the Series  shares for sale
     under  the  so-called  Blue Sky Laws of any  state or for  maintaining  the
     registration  of the  Trust and of the  Series  shares  under  the  federal
     Investment  Company Act of 1940 (the "1940 Act") and the federal Securities
     Act of 1933,  to the end that there will be available for sale from time to
     time such number of Series  shares as the  Distributor  may  reasonably  be
     expected to sell.  The Trust shall advise the  Distributor  promptly of (a)
     any  action of the SEC or any  authorities  of any state or  territory,  of
     which it may be advised,  affecting  registration or  qualification  of the
     Trust or the Series shares,  or rights to offer Series shares for sale, and
     (b) the  happening of any event,  which makes untrue any statement or which
     requires the making of any change in the Trust's registration  statement or
     its  prospectus  relating  to the  Series  shares  in  order  to  make  the
     statements therein not misleading.

10.  DISTRIBUTOR INDEPENDENT CONTRACTOR. The Distributor shall be an independent
     contractor and neither the Distributor nor any of its officers or employees
     as such is or  shall  be an  employee  of the  Trust.  The  Distributor  is
     responsible for its own conduct and the employment,  control and conduct of
     its agents and  employees  and for injury to such agents or employees or to
     others  through  its agents or  employees.  The  Distributor  assumes  full
     responsibility  for its agents and employees under applicable  statutes and
     agrees to pay all employer taxes thereunder.

11.  EXPENSES PAID BY  DISTRIBUTOR.  While the  Distributor  continues to act as
     agent of the Trust to obtain  subscriptions  for and to sell Series shares,
     the Distributor shall pay the following:

     (a)  all expenses of printing  (exclusive of typesetting)  and distributing
          any  prospectus  for use in offering  Series shares for sale,  and all
          other copies of any such prospectus used by the Distributor, and

     (b)  all other  expenses of  advertising  and of  preparing,  printing  and
          distributing  all other  literature  or material for use in connection
          with offering Series shares for sale.

12.  INTERESTS  IN  AND  OF  DISTRIBUTOR.  It is  understood  that  any  of  the
     shareholders,  trustees, officers, employees and agents of the Trust may be
     a  shareholder,  director,  officer,  employee or agent of, or be otherwise
     interested in, the Distributor,  any affiliated  person of the Distributor,
     any  organization  in which the  Distributor  may have an  interest  or any
     organization  which  may  have an  interest  in the  Distributor;  that the
     Distributor,  any such affiliated  person or any such organization may have
     an interest in the Trust;  and that the existence of any such dual interest
     shall not affect the validity hereof or of any transaction hereunder except
     as otherwise provided in the agreement and declaration of trust or by- laws
     of the Trust, in the limited partnership agreement of the Distributor or by
     specific provision of applicable law.

                                       13



13.  EFFECTIVE DATE AND TERMINATION. This Agreement shall become effective as of
     the date of its execution, and

     (a)  Unless otherwise  terminated,  this Agreement shall continue in effect
          with respect to the shares of a Series so long as such continuation is
          specifically  approved at least  annually (i) by the Board of Trustees
          of the Trust or by the vote of a  majority  of the votes  which may be
          cast by shareholders of the Series and (ii) by a vote of a majority of
          the Board of Trustees of the Trust who are not  interested  persons of
          the  Distributor or the Trust,  cast in person at a meeting called for
          the purpose of voting on such approval.

     (b)  This  Agreement may at any time be terminated on sixty days' notice to
          the  Distributor  either by vote of a majority of the Trust's Board of
          Trustees  then in  office  or by the vote of a  majority  of the votes
          which may be cast by shareholders of the Series.

     (c)  This  Agreement  shall  automatically  terminate  in the  event of its
          assignment.

     (d)  This  Agreement may be terminated by the  Distributor  on ninety days'
          written notice to the Trust.

Termination of this Agreement pursuant to this section shall be without payment
of any penalty.

14.  DEFINITIONS.  For purposes of this  Agreement,  the  following  definitions
     shall apply:

     (a)  The "vote of a majority of the votes which may be cast by shareholders
          of the  Series"  means  (1)  67% or more of the  votes  of the  Series
          present (in person or by proxy) and entitled to vote at such  meeting,
          if the  holders  of more  than 50% of the  outstanding  shares  of the
          Series  entitled to vote at such meeting are present;  or (2) the vote
          of the  holders  of more  than 50% of the  outstanding  shares  of the
          Series entitled to vote at such meeting, whichever is less.

     (b)  The terms "affiliated  person,"  "interested  person" and "assignment"
          shall  have  their  respective  meanings  as  defined  in the 1940 Act
          subject,  however,  to such  exemptions  as may be  granted by the SEC
          under the 1940 Act.

15.  AMENDMENT.  This  Agreement may be amended at any time by mutual consent of
     the parties,  provided that such consent on the part of the Series shall be
     approved (i) by the Board of Trustees of the Trust or by vote of a majority
     of the votes which may be cast by  shareholders of the Series and (ii) by a
     vote of a  majority  of the  Board of  Trustees  of the  Trust  who are not
     interested  persons  of the  Distributor  or the Trust  cast in person at a
     meeting called for the purpose of voting on such approval.

                                       14



16.  APPLICABLE LAW AND  LIABILITIES.  This  Agreement  shall be governed by and
     construed in accordance with the laws of The Commonwealth of Massachusetts.
     All sales  hereunder  are to be made,  and title to the Series shares shall
     pass, in Boston, Massachusetts.

17.  LIMITED  RECOURSE.  The Distributor  hereby  acknowledges  that the Trust's
     obligations hereunder are binding only on the assets and property belonging
     to the Trust.


IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.

                                 LOOMIS SAYLES FUNDS

                                 By:   ________________________________
                                       Daniel J. Fuss
                                       President


                                 LOOMIS SAYLES DISTRIBUTORS, L.P.
                                 By:  Loomis Sayles Distributors, Incorporated,
                                        its general partner


                                 By:  ________________________________
                                      Lauren B. Pitalis
                                      President

     A copy of the Agreement and Declaration of Trust establishing Loomis Sayles
Funds  (the  "Trust")  is on file  with the  Secretary  of The  Commonwealth  of
Massachusetts,  and notice is hereby  given that this  Agreement  is executed on
behalf of the Trust by officers of the Trust as  officers  and not  individually
and that the  obligations  of or arising out of this  Agreement  are not binding
upon any of the trustees, officers or shareholders of the Trust individually but
are binding only upon the assets and property of the Trust.

                                       15




                                   APPENDIX B

                    LOOMIS SAYLES INVESTMENT GRADE BOND FUND
                      CLASS J SERVICE AND DISTRIBUTION PLAN

This Plan (the "Plan") constitutes the Service and Distribution Plan relating to
the Class J shares of Loomis Sayles Investment Grade Bond Fund (the "Series"), a
series of Loomis Sayles Funds, a Massachusetts business trust (the "Trust").

     Section 1. The Trust,  on behalf of the Series,  will pay to Loomis  Sayles
Distributors,  L.P., a Delaware limited  partnership which acts as the Principal
Distributor  of the Series'  shares,  or such other entity as shall from time to
time act as the Principal Distributor of the Series' shares (the "Distributor"),
a fee (the  "Service  Fee") at an annual rate not to exceed 0.25% of the Series'
average daily net assets  attributable to Class J shares.  Subject to such limit
and subject to the  provisions of Section 7 hereof,  the Service Fee shall be as
approved  from  time to  time  by (a)  the  Trustees  of the  Trust  and  (b)the
Independent  Trustees of the Trust.  The Service Fee shall be accrued  daily and
paid monthly or at such other intervals,  as the Trustees shall  determine.  The
Distributor may pay all or any portion of the Service Fee to securities  dealers
or other  organizations  (including,  but not limited to, any  affiliate  of the
Distributor) as service fees pursuant to agreements with such  organizations for
providing  personal  services to  investors  in shares of the Series  and/or the
maintenance  of  shareholder  accounts.  All  payments  under this Section 1 are
intended  to qualify as "service  fees" as defined in the  Conduct  Rules of the
National Association of Securities Dealers, Inc. (the "NASD Rules").

     Section 2. The Trust, on behalf of the Series, will pay to the Distributor,
a fee (the  "Distribution  Fee") at an annual  rate not to  exceed  0.50% of the
Series' average daily net assets attributable to Class J shares. Subject to such
limit and subject to the provisions of Section 7 hereof,  the  Distribution  Fee
shall be as approved  from time to time by (a) the Trustees of the Trust and (b)
the Independent  Trustees of the Trust.  The  Distribution  Fee shall be accrued
daily  and paid  monthly  or at such  other  intervals,  as the  Trustees  shall
determine. The Distributor may pay all or any portion of the Distribution Fee to
securities dealers or other  organizations  (including,  but not limited to, any
affiliate of the Distributor) as commissions, asset-based sales charges or other
compensation  with  respect to the sale of shares of the Series,  and may retain
all or any portion of the Distribution Fee as compensation for the Distributor's
services as  principal  underwriter  of the shares of the Series.  All  payments
under this Section 2 are intended to qualify as  "asset-based  sales charges" as
defined in the NASD Rules.

     Section 3. This Plan shall continue in effect for a period of more than one
year after  February 1, 1999 only so long as such  continuance  is  specifically
approved  at  least  annually  by  votes  of the  majority  (or  whatever  other
percentage  may,  from  time to  time,  be  required  by  Section  12(b)  of the
Investment  Company Act of 1940 (the "Act") or the rules and  regulations  there
under) of both (a) the Trustees of the Trust,  and (b) the Independent  Trustees
of the Trust,  cast in person at a meeting  called for the  purpose of voting on
this Plan or such agreement.

                                       16



     Section 4. Any person  authorized to direct the  disposition of monies paid
or payable by the Trust  pursuant  to this Plan or any related  agreement  shall
provide to the Trustees of the Trust,  and the Trustees  shall review,  at least
quarterly,  a written  report of the amounts so expended  and the  purposes  for
which such expenditures were made.

     Section 5. This Plan may be terminated at any time by vote of a majority of
the Independent  Trustees, or by vote of a majority of the outstanding shares of
the Series.

     Section 6. All agreements  with any person  relating to  implementation  of
this Plan  shall be in  writing,  and any  agreement  related to this Plan shall
provide:

     A.   That such agreement may be terminated at any time,  without payment of
          any penalty,  by vote of a majority of the Independent  Trustees or by
          vote of a majority of the  outstanding  shares of the  Series,  on not
          more than 60 days' written notice to any other party to the agreement;
          and

     B.   That such agreement shall terminate  automatically in the event of its
          assignment.

     Section 7. This Plan may not be amended to increase  materially  the amount
of expenses permitted pursuant to Section 1 hereof without approval by a vote of
at least a majority of the  outstanding  shares of the Series,  and all material
amendments  of  this  Plan  shall  be  approved  in  the  manner   provided  for
continuation of this Plan in Section 2.

     Section 8. As used in this Plan, (a) the term "Independent  Trustees" shall
mean those  Trustees of the Trust who are not  interested  persons of the Trust,
and have no direct or indirect  financial interest in the operation of this Plan
or any agreements  related to it, and (b) the terms "assignment" and "interested
person" shall have the  respective  meanings  specified in the Act and the rules
and regulations thereunder,  and the term "majority of the outstanding shares of
the  Series"  shall mean the  lesser of the 67% or the 50%  voting  requirements
specified in clauses (A) and (B), respectively, of the third sentence of Section
2(a)(42)  of the Act,  all subject to such  exemptions  as may be granted by the
Securities and Exchange Commission.


                                       17






                                   APPENDIX C

OUTSTANDING SHARES
As of June 10, 2004, the total number of Class J shares of the Fund outstanding
was approximately ______________.

SIGNIFICANT SHAREHOLDERS
As of June 10, 2004, the following persons owned of record or beneficially more
than 5% of the Class J shares of the Fund:





                                                                                  
- ---------------------------------------------------- ----------------------- ---------------------------
                       NAME AND                                                      PERCENTAGE OF
                      ADDRESS OF                              SHARES              OUTSTANDING SHARES
                        OWNER*                                 OWNED                OF CLASS OWNED
- ---------------------------------------------------- ----------------------- ---------------------------
- ---------------------------------------------------- ----------------------- ---------------------------

- ---------------------------------------------------- ----------------------- ---------------------------
- ---------------------------------------------------- ----------------------- ---------------------------

- ---------------------------------------------------- ----------------------- ---------------------------
- ---------------------------------------------------- ----------------------- ---------------------------

- ---------------------------------------------------- ----------------------- ---------------------------
- ---------------------------------------------------- ----------------------- ---------------------------

- ---------------------------------------------------- ----------------------- ---------------------------
- ---------------------------------------------------- ----------------------- ---------------------------

- ---------------------------------------------------- ----------------------- ---------------------------
- ---------------------------------------------------- ----------------------- ---------------------------

- ---------------------------------------------------- ----------------------- ---------------------------
- ---------------------------------------------------- ----------------------- ---------------------------

- ---------------------------------------------------- ----------------------- ---------------------------



*Such ownership may be  beneficially  held by individuals or entities other than
the owner listed.  To the extent that any listed  shareholder  beneficially owns
more than 25% of the Fund,  it may be deemed to  "control"  the Fund  within the
meaning of the Investment Company Act of 1940, as amended.

As of June 10, 2004, the Trustees and the executive  officers of the Trust, as a
group and individually, owned less than 1% of the Class J shares of the Fund.


                                      C-1

            Loomis Sayles Investment Grade Bond Fund - Class J Shares
                                  (The "Fund")

                    PROXY SOLICITED BY THE BOARD OF TRUSTEES
                          PROXY FOR SPECIAL MEETING OF
                         SHAREHOLDERS ON AUGUST 5, 2004

The undersigned  shareholder  hereby appoints each of John E. Pelletier,  Coleen
Downs  Dinneen,  Russell  Kane and  Nicholas  H.  Palmerino  as  proxies  of the
undersigned,  with full power of substitution,  to represent the undersigned and
vote at the Special  Meeting of  Shareholders  of the Loomis  Sayles  Investment
Grade  Bond  Fund - Class J Shares  to be held on  August  5,  2004 at 2:00 p.m.
Eastern  time  at the  offices  of the  Fund's  administrator,  CDC  IXIS  Asset
Management Services, Inc., at 399 Boylston Street, Boston,  Massachusetts 02116,
and at any  adjournments  thereof,  all shares of the Fund that the  undersigned
would be entitled to vote if personally present.  Your vote acknowledges receipt
of the Notice of Special Meeting and the accompanying Proxy Statement.

PLEASE VOTE YOUR PROXY TODAY BY COMPLETING,  SIGNING,  DATING AND RETURNING THIS
PROXY  CARD.  THIS  PROXY  WHEN  PROPERLY  EXECUTED  WILL BE VOTED IN THE MANNER
DIRECTED  HEREIN BY THE UNDERSIGNED  SHAREHOLDER.  IF NO DIRECTION IS MADE, THIS
PROXY WILL BE VOTED FOR THE PROPOSALS.

In their discretion, the proxies are authorized to vote upon such other business
as may  properly  come before the  Meeting.  THE  TRUSTEES  RECOMMEND A VOTE FOR
PROPOSALS 1 AND 2.

Vote on Proposals (check appropriate boxes below)

1.   Approval of a Distribution  Agreement  between the Trust,  on behalf of the
     Class J Shares of the Fund,  and Loomis Sayles  Distributors,  L.P. for the
     period from November 1, 2003 through April 23, 2004, as well as the release
     of escrowed fees payable thereunder.

     FOR                        AGAINST          ABSTAIN



2.   Approval of a Service and  Distribution  Plan relating to Class J shares of
     the Fund, as well as the release of escrowed fees payable thereunder.

     FOR                        AGAINST          ABSTAIN


Please sign  exactly as your name  appears on this proxy card.  All joint owners
should  sign.  When  signing as executor,  administrator,  attorney,  trustee or
guardian  or as  custodian  for a minor,  please  give full title as such.  If a
corporation,  please  sign in full  corporate  name and  indicate  the  signer's
office. If a partner, sign in the partnership name.


- -------------------    ----            -------------------    ----
Signature              Date            Signature              Date
                                      (Joint Owners)