Loomis Sayles Funds I

Gross Expense Ratio (before reductions and reimbursements)*

Institutional: 0.68

Retail: 1.04

Net Expense Ratio (after reductions and reimbursements)*

Institutional: 0.68

Retail: 1.00

N-CSR 1 dncsr.htm LOOMIS SAYLES FUNDS I Loomis Sayles Funds I

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: 811-08282

Loomis Sayles Funds I

(Exact name of Registrant as specified in charter)


399 Boylston Street, Boston, Massachusetts		02116
(Address of principal executive offices)		(Zip code)

Coleen Downs Dinneen, Esq.

Natixis Distributors, L.P.

399 Boylston Street

Boston, Massachusetts 02116

(Name and address of agent for service)

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

Date of fiscal year end: September 30

Date of reporting period: September 30, 2008

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:

LOGO

Loomis Sayles Mid Cap Growth Fund

Loomis Sayles Small Cap Growth Fund

Loomis Sayles Small Cap Value Fund



TABLE OF CONTENTS

Fund and Manager Review		1

Portfolio of Investments		11

Statements of Assets and Liabilities		26

Statements of Operations		27

Statements of Changes in Net Assets		28

Financial Highlights		31

Notes to Financial Statements		35

ANNUAL REPORT

SEPTEMBER 30, 2008

FUND AND MANAGER REVIEW

Loomis Sayles Mid Cap Growth Fund

LOGO

Phil Fine, CFA

Manager since February 1999

FUND FACTS

Symbol | Institutional: LSAIX;

Retail: LAGRX

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

Strategy | Invests at least 80% of its net assets (plus any borrowings made for investment purposes) in common stocks or other equity securities (which may include securities offered in the secondary markets or in initial public offerings) of companies with market capitalizations that fall within the capitalization range of the Russell Midcap Growth Index, although the Fund may invest in companies of any size

Fund Inception Date | 12/31/96

Total Net Assets | $146.3 million

PORTFOLIO REVIEW

Strong stock selection and an overweight in the materials and processing sector, coupled with strong selection in the energy sector, were primarily responsible for the Fund’s outperformance relative to its Benchmark, the Russell Midcap Growth Index, for the fiscal year ended September 30, 2008.

Early in 2008, we trimmed the Fund’s exposure to late-cyclical (companies sensitive to the economy late in the cycle) energy, materials and industrial holdings in anticipation of an economic downturn. We also increased the Fund’s weightings in healthcare and consumer discretionary. This proved to be the wrong strategy, so in late March and early April we reversed course and added significantly to our energy and materials exposure, which proved successful. Our concerns about the sustainability of the commodities bubble caused us to partially offset that exposure with holdings in technology, financial companies (asset managers) and discount merchandisers. Late in the period, on signs of a global economic slowdown, we significantly reduced our exposure to late cyclicals and increased the Portfolio’s defensive characteristics by adding to consumer staples and healthcare.

For much of the year, rising demand in emerging markets and a weak US dollar drove commodity prices higher. We had some big winners in coal (Alpha Natural Resources), oil services (Cameron International) and exploration and production (Range Resources, Southwestern Energy). In the materials sector, our biggest winners were in metals (Cleveland-Cliffs) and fertilizer (CF Industries). All of these strong performers were sold except Range Resources.

No sector in the Fund or Benchmark generated positive absolute returns for the period. For the most part, the least negative sectors were the most defensive: healthcare and consumer staples. Technology and financial services represented the largest detractors to absolute performance. The technology sector experienced across-the-board weakness stemming from earnings disappointments and/

or lowered guidance, combined with compression in the P/E multiple among high P/E stocks. In financial services, we had minimal exposure to banks, but experienced losses in companies exposed to the capital markets.

OUTLOOK

The equity and credit markets are facing unprecedented challenges. The freezing of liquidity and credit quality and the failure or near-failure of several financial institutions in the United States and Europe created a crisis of confidence not seen in decades. The Federal Reserve Board, US Treasury, Congress and governments worldwide recognize what must be accomplished and are working to restore liquidity and confidence. Furthermore, large equity infusions from private investors are beginning to appear.

With the recent sell-off, the market may have discounted expectations for slower economic growth and lower earnings, and the ingredients for a market bottom seem to be falling into place. We believe negative news on consumer spending, home prices and unemployment is likely to continue, but the market is forward-looking and we think it will begin to discount a brighter future well before there are any concrete signs of improvement.

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008


1 Year		5 Years		10 Years		Since Inception
Loomis Sayles Mid Cap Growth: Institutional
-21.12	%	9.88	%	8.64	%	8.36	%
Loomis Sayles Mid Cap Growth: Retail
-21.27		9.61		8.35		8.08
Russell Midcap Growth Index^(c)
-24.65		6.53		5.51		5.86
Lipper Mid-Cap Growth Funds Index^(c)
-24.16		7.23		6.01		5.07


Gross expense ratio (before reductions and reimbursements)*
Institutional: 1.10%				Retail: 1.43%
Net expense ratio (after reductions and reimbursements)*
Institutional: 1.00%				Retail: 1.25%

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Inception to September 30, 2008^(a)(b)

LOGO

Data quoted reflects past performance and cannot guarantee future results. Average annual total returns assume reinvestment of dividends and capital gain distributions. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. For performance current to the most recent month end, please visit the Loomis Sayles website. Current performance may be higher or lower than quoted.

Returns do not reflect the taxes that a shareholder would pay on fund distributions or the redemption of shares. Periods of less than one year are not annualized. Performance data reflects certain fee reductions and reimbursements, if any, without which performance would be lower.

(a) Cumulative performance is shown for the Institutional Class of Shares. Performance of the Retail Class would be lower due to higher fees. (b) The mountain chart is based on the initial investment minimum of $100,000 for the Institutional Class. (c) See page 7 for a description of the Indices.

WHAT YOU SHOULD KNOW

Small- and mid-cap stocks may be more volatile than larger, more established companies. The secondary market for these stocks may be less liquid, which could adversely impact the Fund’s value. Growth funds involve increased risks, in part, because the value of the underlying securities is based on future expectations that may or may not be met.

The Fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The Fund is subject to currency risk, which is the risk that fluctuations in exchange rates between the US dollar and foreign currencies may cause the value of a Fund’s investments to decline. Fund shares should be viewed as a long-term investment.

FUND AND MANAGER REVIEW

Loomis Sayles Small Cap Growth Fund

LOGO

Mark F. Burns, CFA

Manager since January 2005

LOGO

John Slavik, CFA

Manager since April 2005

FUND FACTS

Symbol | Institutional: LSSIX;

Retail: LCGRX

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

Strategy | Invests at least 80% of its net assets (plus any borrowings made for investment purposes) in equity securities of companies with market capitalizations that fall within the capitalization range of the Russell 2000 Index. Unlike the Index, the Fund may invest in companies of any size

Fund Inception Date | 12/31/96

Total Net Assets | $124.4 million

PORTFOLIO REVIEW

The Fund slightly underperformed its Benchmark, the Russell 2000 Growth Index, for the fiscal year ended September 30, 2008, primarily due to stock selection in the energy and financial services sectors. The stocks we selected in technology and utilities performed well for the Fund, but not enough to offset poor performance in energy and financial services.

In light of high market volatility, we sought to limit

the Fund’s risk by reducing exposure to the technology, financial services and consumer discretionary sectors. In technology, we trimmed semiconductors, an industry that was experiencing a cyclical slowdown. In financial services, we exited companies exposed to the ongoing credit crisis, and as economic growth prospects dwindled, we reduced the Fund’s consumer discretionary weighting.

On an absolute basis, technology was the largest detractor, followed by consumer discretionary, financial services and energy. Within the financial services sector, Aircastle, an airline leasing company, and National Financial Partners, a financial planning company, experienced earnings shortfalls and both were sold early in the period. The Fund’s position in eHealth declined even though the company’s results met expectations. Investors were hoping for better performance from this internet-based health insurance company. We sold the stock in July. In the energy sector, declining global commodity markets put pricing pressure on many companies, including Mitcham Industries, a seismic equipment leasing company, and Exterran Holdings, which provides oil and gas production and processing facilities worldwide. We sold the stock late in the period.

The only sector that made a positive contribution to absolute performance was consumer staples. Within the sector our selections included bakery company Flowers Foods, which was one of the top-performing stocks during the period, due to strong revenue and earnings growth and its sound expansion strategy. Our position in Petrohawk Energy Corp., an oil and gas exploration and production company, was the Fund’s best-performing stock. Shares spiked after reporting positive natural gas output from a new well and we sold the stock.

OUTLOOK

AVERAGE ANNUAL TOTAL RETURNS

Periods ended September 30, 2008


1 Year		5 Years		10 Years		Since Inception
Loomis Sayles Small Cap Growth: Institutional
-17.64	%	8.76	%	3.53	%	3.32	%
Loomis Sayles Small Cap Growth: Retail
-17.86		8.47		3.27		3.06
Russell 2000 Growth Index^(c)
-17.07		6.64		4.67		3.27
Russell 2000 Index^(c)
-14.48		8.15		7.81		6.83
Lipper Small-Cap Growth Funds Index^(c)
-23.85		4.42		6.32		4.49
Gross expense ratio (before reductions and reimbursements)*
Institutional: 1.23%				Retail: 1.50%
Net expense ratio (after reductions and reimbursements)*
Institutional: 1.00%				Retail: 1.25%

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Inception to September 30, 2008^(a)(b)

LOGO

Data quoted reflects past performance and cannot guarantee future results. Average annual total returns assume reinvestment of dividends and capital gains distributions. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. For performance current to the most recent month end, please visit the Loomis Sayles website. Current performance may be higher or lower than quoted.

WHAT YOU SHOULD KNOW

FUND AND MANAGER REVIEW

Loomis Sayles Small Cap Value Fund

LOGO

Joseph Gatz, CFA

Manager since January 2000

LOGO

Daniel Thelen, CFA

Manager since April 2000

FUND FACTS

Symbol | Institutional: LSSCX;

Retail: LSCRX; Admin: LSVAX

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

Fund Inception Date | 5/13/91

Class Inception Date | Institutional: 5/13/91

Retail: 12/31/96

Admin: 1/2/98

Total Net Assets | $1,095.6 million

PORTFOLIO REVIEW

The Fund underperformed its Benchmark, the Russell 2000 Value Index, for the fiscal year ended September 30, 2008, primarily due to stock selection in the energy and financial services sectors.

Our weakest sector during the fiscal year was financial services, which represented the most heavily weighted sector within the Benchmark and which declined over 17% during the period. Weakness in financial services was driven by continued deterioration in credit trends within the banking industry and highly risk-averse behavior on the part of lenders, which resulted in a lack of liquidity throughout the credit markets. In addition, certain financial services holdings disappointed from a fundamental perspective. National Financial Partners, a distributor of financial services products to small- and medium-sized businesses and individuals, reported a shortfall to organic growth and was eliminated from the Portfolio in March 2008. Advanta Corp., a provider of credit cards and related products to small- and medium-sized businesses, sold off sharply on concerns over increasing losses as a result of deteriorating credit trends throughout the US economy. We shared those concerns and exited our position during the fourth quarter of 2007.

Consumer discretionary stocks were also weak during the period, as housing prices fell, employment trends worsened and food and gasoline prices moved higher. While our consumer stocks declined during the period, our strategy of seeking out company-specific catalysts resulted in favorable stock selection, which offset some of the impact of sector weakness. These negative trends were also partially offset by timely additions to “early-cycle” transportation stocks, such as Ryder System, Inc. and Hub Group, Inc. late in 2007, as well as an increase in the Fund’s healthcare weighting. Healthcare proved resilient from overall market weakness. The Fund’s two best- performing healthcare holdings were Perrigo Co., a manufacturer of store-brand, over-the-counter pharmaceuticals; and Atlanta-based Sciele Pharma, a branded pharmaceutical company that was acquired by a Japanese drug manufacturer at a substantial premium. The Fund’s top performers in consumer staples included Ralcorp Holdings, a private label cereal manufacturer; and Spartan Stores, a Midwestern grocery and food distribution chain.

As US and global economic growth prospects deteriorated throughout the period, we adopted a somewhat more defensive posture for the Fund, increasing its weighting in healthcare and reducing positions in producer durables and technology. We also increased the Fund’s weighting in consumer discretionary stocks; this sector has often been early in discounting economic recoveries.

OUTLOOK

In these volatile markets—with fundamental challenges in the banking industry, capital markets and the global economy—the importance of a steady, time-tested investment strategy has never been greater. While in recent months the markets have seemed to act irrationally at times, our team is committed to understanding risks and unearthing opportunities in the current market while balancing capital preservation and long term capital gain

prospects. Our approach continues to emphasize bottom-up stock selection to drive performance, as opposed to sector rotation or asset allocation. Our focus remains on what appear to be fundamentally sound, small companies with valuations that we believe do not reflect fair value of the enterprise. In selecting stocks for the Fund, we look for companies with strong market niches, solid cash flow, balance sheet support, attractive valuations and a catalyst for improvement. Although we think economic news is likely to remain difficult for some time, stock prices are a discounting mechanism, and at some point we believe they will begin to anticipate restoration of stability in the capital markets and a resumption of economic growth. In the meantime, we will rely on our strategy to guide us through and we look forward to better markets ahead.

AVERAGE ANNUAL TOTAL RETURNS

Periods ended September 30, 2008


1 Year		5 Years		10 Years	Since Inception^{^(a)(b)}
Loomis Sayles Small Cap Value: Institutional
-15.02	%	10.07	%	10.63%	13.05%
Loomis Sayles Small Cap Value: Retail^(a)
-15.21		9.79		10.35	12.85
Loomis Sayles Small Cap Value: Admin^(a)
-15.44		9.51		10.06	12.50
Russell 2000 Value Index^(c)
-12.25		9.45		10.14	12.50
Russell 2000 Index^(c)
-14.48		8.15		7.81	9.77
Lipper Small-Cap Core Funds Index^(b)(c)
-17.21		7.94		8.85	N/A


Gross expense ratio (before reductions and reimbursements)*
Institutional: 0.89%	Retail: 1.24%	Admin: 1.57%
Net expense ratio (after reductions and reimbursements)*
Institutional: 0.89%	Retail: 1.16%	Admin: 1.41%

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Inception to September 30, 2008^(d)(e)

LOGO

(a) Performance shown for periods prior to the inception date of the Retail Class (12/31/96) and Admin Class (1/02/98) represents the performance of the Institutional Class of shares during the periods shown, adjusted to reflect current levels of 12b-1 fees payable by the respective Classes. Since index performance data is not available coincident with the Fund’s inception date, the beginning value of the index is the value as of the month end closest to the Fund’s inception date. (b) The Lipper Small-Cap Core Funds Index performance data is not available prior to January 1, 1992. (c) See page 7 for a description of the Indices. (d) Cumulative performance is shown for the Institutional Class of Shares. Performance of the Retail and Admin Classes would be lower due to higher fees and expenses. (e) The mountain chart is based on the initial investment minimum of $100,000 for the Institutional Class.

WHAT YOU SHOULD KNOW

Value stocks may fall out of favor with investors and underperform the overall equity market during any given period. Small- and mid-cap stocks may be more volatile than larger, more established companies. The secondary market for these stocks may be less liquid, which could adversely impact the Fund’s value. Foreign investments involve special risks, including greater economic, political and currency fluctuation risks, which may be even greater in emerging markets. Foreign countries may have different accounting standards than US standards.

ADDITIONAL INFORMATION

Index Definitions

Indexes are unmanaged and do not have expenses that affect results, unlike mutual funds. Index returns are adjusted for the reinvestment of capital gain distributions and income dividends. It is not possible to invest directly in an index.

Lipper Mid-Cap Growth Funds Index is an equally weighted index of typically the 30 largest mutual funds within the mid-cap growth funds investment objective.

Lipper Small-Cap Core Funds Index is an equally weighted index of typically the 30 largest mutual funds within the small-cap core funds investment objective.

Lipper Small-Cap Growth Funds Index is an equally weighted index of typically the 30 largest mutual funds within the small-cap growth funds investment objective.

Source: Lipper, Inc.

Russell Midcap Growth Index is a market capitalization weighted index of medium capitalization stocks determined by Russell to be growth stocks as measured by their price-to-book ratios and forecasted growth values. The stocks are also members of the Russell 1000 Growth Index.

Russell 2000 Growth Index is an index comprised of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2000 Index is an index comprised of the 2,000 smallest companies in the Russell 3000 Index (a broad market index), representing approximately 8% of the Russell 3000 total market capitalization.

Russell 2000 Value Index is an index comprised of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

After-Tax Returns

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts or individual retirement accounts. Under certain circumstances, the addition of the tax benefits from capital losses resulting from redemptions may cause the return after taxes on distributions and sale of fund shares to be greater than the return after taxes on distributions or even the return before taxes.

Proxy Voting Information

A description of the Funds’ proxy voting policies and procedures is available without charge, upon request, (i) by calling Loomis Sayles at 800-633-3330; (ii) on the Funds’ website, www.loomissayles.com, and (iii) on the SEC’s website, www.sec.gov. Information about how the Funds voted proxies relating to portfolio securities during the 12 months ended June 30, 2008 is available on (i) the Funds’ website and (ii) the SEC’s website.

Quarterly Portfolio Schedules

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

UNDERSTANDING YOUR FUND’S EXPENSES

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

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, 2008 through September 30, 2008. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual fund returns and expenses. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example $8,600 account value divided by $1,000 = 8.6) and multiply the result by the number in the Expenses Paid During the Period column as shown below for your class.

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

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

Loomis Sayles Mid Cap Growth Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$ 855.00	$4.64
Hypothetical (5% return before expenses)	$1,000.00	$1,020.00	$5.05

Retail Class
Actual	$1,000.00	$ 854.40	$5.80
Hypothetical (5% return before expenses)	$1,000.00	$1,018.75	$6.31
* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 1.00% and 1.25% for the Institutional and Retail Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

Loomis Sayles Small Cap Growth Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$ 977.60	$4.94
Hypothetical (5% return before expenses)	$1,000.00	$1,020.00	$5.05

Retail Class
Actual	$1,000.00	$ 976.20	$6.18
Hypothetical (5% return before expenses)	$1,000.00	$1,018.75	$6.31
* Expenses are equal to the Fund’s annualized expense ratio (after advisory reduction/reimbursement): 1.00% and 1.25% for Institutional and Retail Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

Loomis Sayles Small Cap Value Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$ 985.20	$4.52
Hypothetical (5% return before expenses)	$1,000.00	$1,020.45	$4.60

Retail Class
Actual	$1,000.00	$ 984.20	$5.70
Hypothetical (5% return before expenses)	$1,000.00	$1,019.25	$5.81

Admin Class
Actual	$1,000.00	$ 983.00	$6.94
Hypothetical (5% return before expenses)	$1,000.00	$1,018.00	$7.06
* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.91%, 1.15% and 1.40% for Institutional, Retail and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

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

In connection with these meetings, the Trustees receive materials that the Funds’ investment adviser believe to be reasonably necessary for the Trustees to evaluate the Agreements. These materials generally include, among other items, (i) information on the investment performance of the Funds and the performance of peer groups of funds and the Funds’ performance benchmarks, (ii) information on the Funds’ advisory fees, and other expenses, including information comparing the Funds’ expenses to those of peer groups of funds and information about any applicable expense caps and fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Funds’ adviser (the “Adviser”), and (v) information obtained through the completion of a questionnaire by the Adviser (the Trustees are consulted as to the information requested through that questionnaire). The Board of Trustees, including the Independent Trustees, also consider other matters such as (i) the Adviser’s financial results and financial condition, (ii) each Fund’s investment objective and strategies and the size, education and experience of the Adviser’s respective investment staffs and their use of technology, external research and trading cost measurement tools, (iii) arrangements in respect of the distribution of the Funds’ shares and the related costs, (iv) the procedures employed to determine the value of the Funds’ assets, (v) the allocation of the Funds’ brokerage, if any, including allocations to brokers affiliated with the Adviser and the use of “soft” commission dollars to pay Fund expenses and to pay for research and other similar services, (vi) the resources devoted to, and the record of compliance with, the Funds’ investment policies and restrictions, policies on personal securities transactions and other compliance policies, and (vii) 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 the annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board of Trustees 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 performance and fee differentials against each Fund’s peer group, 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 its peer group. The portfolio management team for each Fund makes periodic presentations to the Contract Review and Governance Committee and/or the full Board of Trustees, and Funds identified as presenting possible performance concerns may be subject to more frequent board presentations and reviews. In addition, each quarter the Trustees are provided with detailed statistical information about each Fund’s portfolio.

The Board of Trustees most recently approved the continuation of the Agreements at their meeting held in June, 2008. The Agreements were continued for a one-year period for all Funds. In considering whether to approve the continuation of the Agreements, the Board of Trustees, including the Independent Trustees, did not identify any single factor as determinative. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included the following:

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, including recent or planned investments by certain of the Adviser in additional personnel or other resources. They also took note of the competitive market for talented personnel, in particular, for personnel who have contributed to the generation of strong investment performance. They considered the need for the Adviser to offer competitive compensation in order to attract and retain capable personnel. They also considered the administrative 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 which compared the performance of the Funds to the performance of peer groups of funds and the Funds’ respective performance benchmarks. In addition, the Trustees also reviewed data prepared by an independent third party which analyzed the performance of the Funds using a variety of performance metrics, including metrics which also measured the performance of the Funds on a risk adjusted basis.

The Trustees also considered the Adviser’s performance and reputation generally, the Funds’ performance as a fund family generally (as noted by certain financial publications), and the historical responsiveness of the Adviser to Trustee concerns about performance and the willingness of the Adviser to take steps intended to improve performance.

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

The costs of the services to be provided and profits to be realized by the Adviser and its affiliates from their respective relationships with the Funds. The Trustees considered the fees charged to the Funds for advisory services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and also by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Adviser to comparable accounts. 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. In evaluating each Funds advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund. 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. They noted that all of the Loomis Sayles Funds in this report have expense caps in place, and they considered the amounts waived or reimbursed by the Adviser under these caps.

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

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

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense waivers. The Trustees noted that each of the Funds was subject to expense caps. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

After reviewing these and related factors, the Trustees considered, 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:

•

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

•

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

•

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

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 advisory agreements should be continued through June 30, 2009.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Mid Cap Growth Fund


	Shares	Value (†)


COMMON STOCKS – 93.6% of Net Assets

Biotechnology – 4.4%
Alexion Pharmaceuticals, Inc.(b)(c)	45,054	$	1,770,622
Myriad Genetics, Inc.(b)(c)	41,167		2,670,915
Onyx Pharmaceuticals, Inc.(b)(c)	54,868		1,985,124

			6,426,661

Capital Markets – 1.7%
T. Rowe Price Group, Inc.(b)	46,683		2,507,344

Commercial Banks – 2.0%
SVB Financial Group(c)	51,729		2,996,144

Commercial Services & Supplies – 5.3%
Stericycle, Inc.(c)	91,839		5,410,235
Waste Connections, Inc.(c)	67,930		2,329,999

			7,740,234

Communications Equipment – 1.4%
Juniper Networks, Inc.(b)(c)	98,016		2,065,197

Diversified Consumer Services – 1.6%
New Oriental Education & Technology Group, Inc., Sponsored ADR(c)	36,348		2,334,996

Diversified Financial Services – 1.6%
Nasdaq OMX Group, Inc. (The)(c)	74,728		2,284,435

Electrical Equipment – 1.0%
First Solar, Inc.(c)	7,532		1,422,870

Electronic Equipment & Instruments – 2.1%
Mettler-Toledo International, Inc.(c)	31,996		3,135,608

Energy Equipment & Services – 1.5%
Core Laboratories N.V.(b)	21,550		2,183,446

Food & Staples Retailing – 2.3%
BJ’s Wholesale Club, Inc.(b)(c)	85,505		3,322,724

Food Products – 1.6%
H.J. Heinz Co.	48,333		2,415,200

Health Care Equipment & Supplies – 11.9%
C.R. Bard, Inc.(b)	33,288		3,158,032
IDEXX Laboratories, Inc.(b)(c)	64,257		3,521,283
Intuitive Surgical, Inc.(c)	10,450		2,518,241
Masimo Corp.(b)(c)	45,413		1,689,364
NuVasive, Inc.(b)(c)	62,090		3,062,900
Varian Medical Systems, Inc.(c)	60,431		3,452,423

			17,402,243

Hotels, Restaurants & Leisure – 1.0%
Yum! Brands, Inc.(b)	44,822		1,461,645

Household Products – 1.9%
Church & Dwight Co., Inc.	44,503		2,763,191

Internet Software & Services – 2.2%
Equinix, Inc.(b)(c)	30,263		2,102,068
Websense, Inc.(c)	50,877		1,137,101

			3,239,169


	Shares	Value (†)


COMMON STOCKS – continued

IT Services – 1.5%
MasterCard, Inc., Class A(b)	12,645	$	2,242,338

Life Sciences Tools & Services – 4.7%
Covance, Inc.(c)	25,555		2,259,317
Illumina, Inc.(c)	113,026		4,580,944

			6,840,261

Machinery – 1.9%
Wabtec Corp.	53,511		2,741,369

Multiline Retail – 3.0%
Dollar Tree, Inc.(c)	122,756		4,463,408

Oil, Gas & Consumable Fuels – 7.4%
Continental Resources, Inc.(b)(c)	61,970		2,431,083
Petrohawk Energy Corp.(c)	138,444		2,994,544
Range Resources Corp.	59,742		2,561,140
Whiting Petroleum Corp.(c)	39,271		2,798,451

			10,785,218

Personal Products – 3.5%
Alberto-Culver Co.	94,169		2,565,164
Avon Products, Inc.	60,962		2,534,190

			5,099,354

Road & Rail – 4.4%
J.B. Hunt Transport Services, Inc.	67,140		2,240,462
Kansas City Southern(b)(c)	94,065		4,172,723

			6,413,185

Software – 7.1%
Activision Blizzard, Inc.(c)	153,845		2,373,829
Ansys, Inc.(c)	42,013		1,591,032
Concur Technologies, Inc.(b)(c)	61,943		2,369,939
McAfee, Inc.(b)(c)	74,693		2,536,574
Solera Holdings, Inc.(c)	55,348		1,589,595

			10,460,969

Specialty Retail – 11.7%
Advance Auto Parts, Inc.	62,637		2,484,184
Aeropostale, Inc.(b)(c)	81,494		2,616,772
Buckle, Inc. (The)(b)	57,650		3,201,881
Guess?, Inc.	65,453		2,277,110
Ross Stores, Inc.	115,995		4,269,776
Urban Outfitters, Inc.(b)(c)	70,985		2,262,292

			17,112,015

Thrifts & Mortgage Finance – 1.5%
Hudson City Bancorp, Inc.	120,877		2,230,181

Trading Companies & Distributors – 1.7%
Fastenal Co.(b)	50,056		2,472,266

Wireless Telecommunication Services – 1.7%
American Tower Corp., Class A(c)	67,849		2,440,529


TOTAL COMMON STOCKS
(Identified Cost $148,324,626)			137,002,200

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Mid Cap Growth Fund – continued


	Shares/ Principal Amount		Value (†)


SHORT-TERM INVESTMENTS – 21.8%
State Street Navigator Securities Lending Prime Portfolio(d)		22,705,247	$	22,705,247
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $9,112,329 on 10/01/2008 collateralized by $9,500,000 Federal Home Loan Bank Discount Notes, Zero Coupon due 7/13/2009 valued at $9,298,125, including accrued interest (Note 2g Notes to Financial Statements)	$	9,112,000		9,112,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $31,817,247)				31,817,247


TOTAL INVESTMENTS – 115.4%
(Identified Cost $180,141,873)(a)				168,819,447
Other assets less liabilities—(15.4)%				(22,516,104)


NET ASSETS – 100.0%			$	146,303,343


(†) See Note 2a of Notes to Financial Statements.
(a) Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $180,443,243 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	1,762,223
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(13,386,019)

Net unrealized depreciation			$	(11,623,796)

(b)

All or a portion of this security was on loan to brokers at September 30, 2008.

(c)

Non-income producing security.

(d)

Represents investment of securities lending collateral.

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 are significantly influenced by trading on exchanges not located in the United States.

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Health Care Equipment & Supplies	11.9	%
Specialty Retail	11.7
Oil, Gas & Consumable Fuels	7.4
Software	7.1
Commercial Services & Supplies	5.3
Life Sciences Tools & Services	4.7
Biotechnology	4.4
Road & Rail	4.4
Personal Products	3.5
Multiline Retail	3.0
Food & Staples Retailing	2.3
Internet Software & Services	2.2
Electronic Equipment & Instruments	2.1
Commercial Banks	2.0
Other Investments, less than 2% each	21.6
Short-Term Investments	21.8

Total Investments	115.4
Other assets less liabilities	(15.4	)

Net Assets	100.0	%

See accompanying notes to financial statements.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Growth Fund


	Shares	Value (†)


COMMON STOCKS – 97.8% of Net Assets

Aerospace & Defense – 3.1%
Curtiss-Wright Corp.(b)	29,192	$	1,326,776
Moog, Inc., Class A(b)(c)	24,085		1,032,765
Orbital Sciences Corp.(c)	59,926		1,436,426

			3,795,967

Biotechnology – 2.9%
BioMarin Pharmaceutical, Inc.(b)(c)	32,188		852,660
Isis Pharmaceuticals, Inc.(b)(c)	51,044		862,133
Rigel Pharmaceuticals, Inc.(b)(c)	41,462		968,138
United Therapeutics Corp.(b)(c)	8,992		945,689

			3,628,620

Capital Markets – 1.1%
Stifel Financial Corp.(b)(c)	27,832		1,388,817

Commercial Banks – 2.3%
PrivateBankcorp, Inc.(b)	25,892		1,078,661
Signature Bank(c)	24,523		855,362
Westamerica Bancorporation(b)	15,272		878,598

			2,812,621

Commercial Services & Supplies – 9.4%
Clean Harbors, Inc.(b)(c)	23,450		1,584,047
FTI Consulting, Inc.(c)	22,966		1,659,064
Geo Group, Inc. (The)(b)(c)	59,324		1,198,938
Hill International, Inc.(c)	87,150		1,207,028
ICF International, Inc.(b)(c)	85,065		1,680,034
Innerworkings, Inc.(b)(c)	100,054		1,109,599
Team, Inc.(b)(c)	41,082		1,483,882
Waste Connections, Inc.(b)(c)	52,371		1,796,325

			11,718,917

Communications Equipment – 2.9%
Brocade Communications Systems, Inc.(c)	124,997		727,482
DG FastChannel, Inc.(b)(c)	71,034		1,557,065
Foundry Networks, Inc.(c)	75,722		1,378,898

			3,663,445

Construction & Engineering – 1.9%
MasTec, Inc.(c)	66,152		879,160
Northwest Pipe Co.(b)(c)	34,867		1,520,899

			2,400,059

Diversified Consumer Services – 2.8%
American Public Education, Inc.(b)(c)	25,112		1,212,407
Capella Education Co.(b)(c)	19,845		850,557
DeVry, Inc.	28,257		1,399,852

			3,462,816

Diversified Financial Services – 0.6%
Heckmann Corp.(b)(c)	90,457		746,270

Diversified Telecommunication Services – 1.3%
NTELOS Holdings Corp.	58,662		1,577,421

Electric Utilities – 1.1%
ITC Holdings Corp.	27,151		1,405,607

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Growth Fund – continued


	Shares	Value (†)


COMMON STOCKS – continued

Electrical Equipment – 1.6%
Energy Conversion Devices, Inc.(c)	13,093	$	762,667
Woodward Governor Co.(b)	35,899		1,266,158

			2,028,825

Electronic Equipment & Instruments – 1.2%
IPG Photonics Corp.(b)(c)	78,253		1,526,716

Energy Equipment & Services – 3.4%
Hornbeck Offshore Services, Inc.(b)(c)	28,596		1,104,377
IHS, Inc., Class A(b)(c)	24,896		1,186,045
Mitcham Industries, Inc.(b)(c)	35,907		362,302
T-3 Energy Services, Inc.(c)	21,071		782,156
Tesco Corp.(b)(c)	39,251		821,916

			4,256,796

Food Products – 2.1%
Flowers Foods, Inc.(b)	47,230		1,386,673
Green Mountain Coffee Roasters, Inc.(b)(c)	29,861		1,174,732

			2,561,405

Health Care Equipment & Supplies – 6.7%
Insulet Corp.(b)(c)	60,793		846,238
Masimo Corp.(b)(c)	34,247		1,273,988
Natus Medical, Inc.(b)(c)	67,580		1,531,363
NuVasive, Inc.(b)(c)	22,592		1,114,463
Quidel Corp.(c)	63,682		1,045,022
RTI Biologics, Inc.(b)(c)	133,599		1,249,151
SonoSite, Inc.(c)	39,087		1,227,332

			8,287,557

Health Care Providers & Services – 7.7%
athenahealth, Inc.(c)	31,690		1,054,326
Bio-Reference Labs, Inc.(c)	47,342		1,368,184
CardioNet, Inc.(b)(c)	49,577		1,237,442
Catalyst Health Solutions, Inc.(c)	46,263		1,208,390
Gentiva Health Services, Inc.(c)	35,900		967,146
MWI Veterinary Supply, Inc.(b)(c)	35,180		1,382,222
Psychiatric Solutions, Inc.(b)(c)	28,788		1,092,505
Sun Healthcare Group, Inc.(c)	89,538		1,312,627

			9,622,842

Health Care Technology – 1.4%
Phase Forward, Inc.(b)(c)	81,879		1,712,090

Hotels, Restaurants & Leisure – 1.7%
Buffalo Wild Wings, Inc.(b)(c)	26,362		1,060,807
Panera Bread Co., Class A(b)(c)	19,753		1,005,428

			2,066,235

Insurance – 1.4%
AmTrust Financial Services, Inc.(b)	69,064		938,580
Arch Capital Group Ltd.(c)	11,714		855,473

			1,794,053

Internet Software & Services – 6.2%
Ariba, Inc.(b)(c)	141,661		2,001,670
Constant Contact, Inc.(b)(c)	70,291		1,199,867
SkillSoft PLC, ADR(c)	142,582		1,491,408


	Shares	Value (†)


COMMON STOCKS – continued

Internet Software & Services – continued
VistaPrint Ltd.(b)(c)	43,782	$	1,437,801
Vocus, Inc.(b)(c)	45,814		1,555,843

			7,686,589

IT Services – 0.8%
Syntel, Inc.(b)	42,244		1,034,978

Life Sciences Tools & Services – 3.3%
Icon PLC, Sponsored ADR(c)	35,804		1,369,503
Luminex Corp.(b)(c)	51,643		1,291,592
Parexel International Corp.(c)	50,329		1,442,429

			4,103,524

Machinery – 3.6%
Energy Recovery, Inc.(b)(c)	87,240		836,631
ESCO Technologies, Inc.(c)	15,845		763,254
Freightcar America, Inc.(b)	34,006		995,356
Kaydon Corp.(b)	24,666		1,111,450
Valmont Industries, Inc.(b)	9,128		754,794

			4,461,485

Media – 2.5%
Knology, Inc.(b)(c)	97,319		785,364
Morningstar, Inc.(b)(c)	21,559		1,195,878
RHI Entertainment, Inc.(c)	75,427		1,123,862

			3,105,104

Oil, Gas & Consumable Fuels – 4.2%
Arena Resources, Inc.(b)(c)	27,359		1,062,897
Comstock Resources, Inc.(c)	11,633		582,232
Foundation Coal Holdings, Inc.	22,281		792,758
Goodrich Petroleum Corp.(c)	21,730		947,211
Petroleum Development Corp.(b)(c)	19,088		846,934
Rex Energy Corp.(b)(c)	65,658		1,034,770

			5,266,802

Pharmaceuticals – 2.6%
Alpharma, Inc., Class A(b)(c)	19,081		703,898
Auxilium Pharmaceuticals, Inc.(c)	21,897		709,463
Eurand NV(b)(c)	51,836		941,342
Viropharma, Inc.(b)(c)	63,304		830,548

			3,185,251

REITs – 1.0%
BioMed Realty Trust, Inc.	45,409		1,201,068

Road & Rail – 0.9%
Kansas City Southern(b)(c)	24,446		1,084,425

Semiconductors & Semiconductor Equipment – 2.5%
Cavium Network, Inc.(b)(c)	64,411		906,907
Netlogic Microsystems, Inc.(b)(c)	43,302		1,309,452
Varian Semiconductor Equipment Associates, Inc.(b)(c)	36,434		915,222

			3,131,581

Software – 7.8%
Advent Software, Inc.(b)(c)	32,973		1,161,639
Blackbaud, Inc.	49,142		906,670

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Growth Fund – continued


	Shares		Value (†)


COMMON STOCKS – continued

Software – continued
Blackboard, Inc.(c)		40,021	$	1,612,446
Concur Technologies, Inc.(c)		22,305		853,389
Informatica Corp.(c)		91,111		1,183,532
NetScout Systems, Inc.(c)		81,175		863,702
Solera Holdings, Inc.(b)(c)		52,824		1,517,105
Tyler Technologies, Inc.(b)(c)		108,887		1,651,816

				9,750,299

Specialty Retail – 3.3%
Aeropostale, Inc.(b)(c)		39,091		1,255,212
Buckle, Inc. (The)(b)		20,272		1,125,907
Gymboree Corp.(c)		28,430		1,009,265
Ulta Salon, Cosmetics & Fragrance, Inc.(c)		49,347		655,328

				4,045,712

Textiles, Apparel & Luxury Goods – 0.9%
True Religion Apparel, Inc.(b)(c)		41,962		1,084,718

Trading Companies & Distributors – 0.7%
DXP Enterprises, Inc.(c)		16,675		888,944

Wireless Telecommunication Services – 0.9%
SBA Communications Corp., Class A(c)		43,635		1,128,837


TOTAL COMMON STOCKS
(Identified Cost $124,156,478)				121,616,396

	Shares/ Principal Amount


SHORT-TERM INVESTMENTS – 21.1%
State Street Navigator Securities Lending Prime Portfolio(d)		22,691,148		22,691,148
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/08 at 1.300% to be repurchased at $3,593,130 on 10/01/08 collateralized by $3,605,000 Federal National Mortgage Association, 4.330% due 7/28/11 valued at $3,668,088 including accrued interest (Note 2g of Notes to Financial Statements)	$	3,593,000		3,593,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $26,284,148)				26,284,148


TOTAL INVESTMENTS – 118.9%
(Identified Cost $150,440,626)(a)				147,900,544
Other assets less liabilities—(18.9)%				(23,463,444)


NET ASSETS – 100.0%			$	124,437,100


(†) See Note 2a of Notes to Financial Statements.
(a) Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $150,467,126 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	7,763,399
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(10,329,981)

Net unrealized depreciation			$	(2,566,582)

(b)

All or a portion of this security was on loan to brokers at September 30, 2008.

(c)

Non-income producing security.

(d)

Represents investments of security lending collateral.

ADR

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

REITs

Real Estate Investment Trusts

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Commercial Services & Supplies	9.4	%
Software	7.8
Health Care Providers & Services	7.7
Health Care Equipment & Supplies	6.7
Internet Software & Services	6.2
Oil, Gas & Consumable Fuels	4.2
Machinery	3.6
Energy Equipment & Services	3.4
Life Sciences Tools & Services	3.3
Specialty Retail	3.3
Aerospace & Defense	3.1
Communications Equipment	2.9
Biotechnology	2.9
Diversified Consumer Services	2.8
Pharmaceuticals	2.6
Semiconductors & Semiconductor Equipment	2.5
Media	2.5
Commercial Banks	2.3
Food Products	2.1
Other Investments, less than 2% each	18.5
Short-Term Investments	21.1

Total Investments	118.9
Other assets less liabilities	(18.9	)

Net Assets	100.0	%

See accompanying notes to financial statements.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Value Fund


	Shares	Value (†)


COMMON STOCKS – 96.7% of Net Assets

Aerospace & Defense – 2.5%
Ducommun, Inc.	199,540	$	4,765,015
Moog, Inc., Class A(c)	214,056		9,178,721
Teledyne Technologies, Inc.(c)	230,897		13,198,073

			27,141,809

Air Freight & Logistics – 1.1%
Atlas Air Worldwide Holdings, Inc.(c)	132,540		5,342,687
Hub Group, Inc., Class A(c)	182,489		6,870,711

			12,213,398

Auto Components – 0.8%
Federal Mogul Corp.(b)(c)	239,496		3,005,675
Gentex Corp.(b)	235,448		3,366,906
Stoneridge, Inc.(b)(c)	207,161		2,330,561

			8,703,142

Building Products – 0.6%
Armstrong World Industries, Inc.(b)	220,314		6,367,075

Capital Markets – 1.9%
Investment Technology Group, Inc.(c)	188,844		5,746,523
JMP Group, Inc.(b)	161,713		840,908
Stifel Financial Corp.(b)(c)	282,127		14,078,137

			20,665,568

Chemicals – 2.6%
Cytec Industries, Inc.	112,465		4,376,013
Koppers Holdings, Inc.	119,827		4,482,728
LSB Industries, Inc.(c)	91,485		1,267,067
Minerals Technologies, Inc.	66,995		3,976,823
Solutia, Inc.(c)	597,275		8,361,850
Zep, Inc.(b)	314,590		5,549,368

			28,013,849

Commercial Banks – 7.9%
Bank of the Ozarks, Inc.(b)	383,177		10,345,779
Citizens Republic Bancorp, Inc.(b)	903,218		2,781,912
Comerica, Inc.(b)	163,603		5,364,542
CVB Financial Corp.(b)	428,949		5,962,391
Hancock Holding Co.(b)	171,626		8,752,926
IBERIABANK Corp.(b)	118,691		6,272,819
Old National Bancorp(b)	199,052		3,985,021
Pennsylvania Commerce Bancorp, Inc.(b)(c)	117,448		3,501,125
Prosperity Bancshares, Inc.(b)	277,785		9,441,912
Signature Bank(c)	281,675		9,824,824
Sterling Bancshares, Inc.	899,189		9,396,525
SVB Financial Group(c)	191,082		11,067,470

			86,697,246

Commercial Services & Supplies – 6.9%
ABM Industries, Inc.	391,160		8,542,934
American Ecology Corp.	244,373		6,761,801
Geo Group, Inc. (The)(b)(c)	373,256		7,543,504
McGrath Rentcorp	302,358		8,713,958
Rollins, Inc.	1,005,262		19,079,873
Standard Parking Corp.(b)(c)	584,334		12,983,901


	Shares	Value (†)


COMMON STOCKS – continued

Commercial Services & Supplies – continued
Waste Connections, Inc.(c)	342,932	$	11,762,568

			75,388,539

Communications Equipment – 2.5%
ADC Telecommunications, Inc.(b)(c)	437,163		3,694,027
ADTRAN, Inc.(b)	282,340		5,502,807
Anaren, Inc.(c)	169,861		1,724,089
CommScope, Inc.(b)(c)	289,303		10,021,456
Tekelec(b)(c)	459,368		6,426,558

			27,368,937

Computers & Peripherals – 1.0%
Intevac, Inc.(b)(c)	313,197		3,332,416
NCR Corp.(c)	130,848		2,885,198
Teradata Corp.(c)	251,165		4,897,718

			11,115,332

Construction & Engineering – 0.6%
Granite Construction, Inc.(b)	153,697		5,505,427
Layne Christensen Co.(c)	41,568		1,472,754

			6,978,181

Consumer Finance – 1.0%
Dollar Financial Corp.(b)(c)	438,239		6,744,498
World Acceptance Corp.(b)(c)	114,051		4,105,836

			10,850,334

Containers & Packaging – 1.6%
Greif, Inc., Class A	53,583		3,516,117
Myers Industries, Inc.(b)	538,926		6,795,857
Rock-Tenn Co., Class A	191,835		7,669,563

			17,981,537

Distributors – 0.1%
Core-Mark Holding Co., Inc.(b)(c)	61,813		1,544,707

Diversified Consumer Services – 0.4%
Hillenbrand, Inc.	221,283		4,461,065

Diversified Financial Services – 0.7%
PHH Corp.(c)	590,822		7,852,024

Electric Utilities – 2.5%
ALLETE, Inc.(b)	228,675		10,176,038
ITC Holdings Corp.(b)	147,590		7,640,734
Portland General Electric Co.(b)	425,252		10,061,462

			27,878,234

Electrical Equipment – 1.8%
Acuity Brands, Inc.(b)	118,589		4,952,277
General Cable Corp.(b)(c)	115,652		4,120,681
II-VI, Inc.(b)(c)	112,325		4,342,484
Polypore International, Inc.(b)(c)	313,468		6,742,697

			20,158,139

Electronic Equipment & Instruments – 2.5%
Anixter International, Inc.(b)(c)	46,485		2,766,322
Daktronics, Inc.(b)	226,280		3,769,825

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Value Fund – continued


	Shares	Value (†)


COMMON STOCKS – continued

Electronic Equipment & Instruments – continued
Littelfuse, Inc.(c)	325,708	$	9,683,299
Scansource, Inc.(b)(c)	255,453		7,354,492
Vishay Intertechnology, Inc.(c)	509,093		3,370,196

			26,944,134

Energy Equipment & Services – 2.7%
Dresser-Rand Group, Inc.(c)	234,984		7,394,946
Hornbeck Offshore Services, Inc.(b)(c)	180,436		6,968,438
Newpark Resources(c)	443,003		3,233,922
Oceaneering International, Inc.(c)	158,835		8,469,082
Superior Well Services, Inc.(b)(c)	149,034		3,772,051

			29,838,439

Food & Staples Retailing – 1.0%
Spartan Stores, Inc.	439,868		10,943,916

Food Products – 1.3%
J & J Snack Foods Corp.	161,455		5,474,939
Ralcorp Holdings, Inc.(b)(c)	131,864		8,888,952

			14,363,891

Gas Utilities – 1.8%
Energen Corp.	66,378		3,005,596
ONEOK, Inc.	32,345		1,112,668
UGI Corp.	613,180		15,807,780

			19,926,044

Health Care Equipment & Supplies – 1.9%
Hill-Rom Holdings, Inc.(b)	234,856		7,118,485
Medical Action Industries, Inc.(b)(c)	261,297		3,430,830
West Pharmaceutical Services, Inc.(b)	200,228		9,775,131

			20,324,446

Health Care Providers & Services – 3.6%
Amedisys, Inc.(b)(c)	150,106		7,305,659
CorVel Corp.(c)	199,528		5,708,496
Healthspring, Inc.(c)	206,960		4,379,274
inVentiv Health, Inc.(b)(c)	231,633		4,090,639
MWI Veterinary Supply, Inc.(b)(c)	109,983		4,321,232
Pediatrix Medical Group, Inc.(c)	96,907		5,225,225
Skilled Healthcare Group, Inc., Class A(c)	538,628		8,558,799

			39,589,324

Hotels, Restaurants & Leisure – 1.9%
Bob Evans Farms, Inc.(b)	241,742		6,597,139
Cosi, Inc.(b)(c)	1,371,708		2,702,265
Dover Downs Gaming & Entertainment, Inc.(b)	301,983		2,349,428
Penn National Gaming, Inc.(c)	208,457		5,538,702
Wyndham Worldwide Corp.	226,044		3,551,151

			20,738,685

Industrial Conglomerates – 0.8%
Teleflex, Inc.	142,341		9,037,230

Insurance – 4.3%
American Equity Investment Life Holding Co.(b)	106,407		798,053
American Physicians Capital, Inc.	109,698		4,643,516
Delphi Financial Group, Inc., Class A	162,971		4,569,707


	Shares	Value (†)


COMMON STOCKS – continued

Insurance – continued
Employers Holdings, Inc.	289,738	$	5,035,646
Fidelity National Financial, Inc., Class A(b)	217,876		3,202,777
HCC Insurance Holdings, Inc.	274,796		7,419,492
Navigators Group, Inc.(c)	116,894		6,779,852
ProAssurance Corp.(c)	109,522		6,133,232
RLI Corp.(b)	136,845		8,496,706

			47,078,981

Internet & Catalog Retail – 0.6%
HSN, Inc.(c)	550,266		6,058,429

Internet Software & Services – 0.5%
United Online, Inc.(b)	525,530		4,945,237

IT Services – 4.5%
Alliance Data Systems Corp.(c)	170,986		10,837,093
Broadridge Financial Solutions, Inc.	657,472		10,118,494
Lender Processing Services, Inc.	262,910		8,024,013
Perot Systems Corp., Class A(c)	465,246		8,072,018
Wright Express Corp.(b)(c)	405,536		12,105,250

			49,156,868

Leisure Equipment & Products – 0.4%
Steinway Musical Instruments, Inc.(b)(c)	171,934		4,869,171

Life Sciences Tools & Services – 1.0%
PerkinElmer, Inc.	273,638		6,832,741
Varian, Inc.(c)	103,764		4,451,475

			11,284,216

Machinery – 3.2%
Actuant Corp., Class A(b)	294,943		7,444,361
Altra Holdings, Inc.(c)	319,028		4,708,853
CLARCOR, Inc.(b)	115,232		4,373,055
Commercial Vehicle Group, Inc.(b)(c)	29,381		208,899
John Bean Technologies Corp.(c)	444,933		5,632,852
RBC Bearings, Inc.(c)	194,903		6,566,282
Wabtec Corp.	111,584		5,716,448

			34,650,750

Media – 2.4%
A H Belo Corp., Class A(b)	233,331		1,203,988
Alloy, Inc.(c)	244,628		1,890,975
Interactive Data Corp.	387,591		9,775,045
John Wiley & Sons, Inc. Class A	325,934		13,184,030

			26,054,038

Metals & Mining – 0.9%
Haynes International, Inc.(b)(c)	82,724		3,873,965
Reliance Steel & Aluminum Co.(b)	146,038		5,545,063

			9,419,028

Multi-Utilities & Unregulated Power – 0.4%
NorthWestern Corp.	193,268		4,856,825

Multiline Retail – 0.6%
Dollar Tree, Inc.(c)	178,125		6,476,625

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Value Fund – continued


	Shares	Value (†)


COMMON STOCKS – continued

Oil, Gas & Consumable Fuels – 2.3%
Mariner Energy, Inc.(c)	353,552	$	7,247,816
Penn Virginia Corp.	197,229		10,539,918
St. Mary Land & Exploration Co.	116,800		4,163,920
Venoco, Inc.(b)(c)	224,274		2,915,562

			24,867,216

Personal Products – 0.8%
Alberto-Culver Co.	338,097		9,209,762

Pharmaceuticals – 2.0%
Endo Pharmaceuticals Holdings, Inc.(c)	285,227		5,704,540
Obagi Medical Products, Inc.(c)	458,289		4,573,724
Perrigo Co.(b)	312,305		12,011,251

			22,289,515

Professional Services – 0.0%
Duff & Phelps Corp., Class A(c)	21,896		460,473

Real Estate Management & Development – 0.6%
Forestar Real Estate Group, Inc.(b)(c)	451,535		6,660,141

REITs – 4.5%
American Campus Communities, Inc.	192,347		6,516,716
Capstead Mortgage Corp.	673,066		7,370,073
Digital Realty Trust, Inc.(b)	168,396		7,956,711
Health Care REIT, Inc.	222,382		11,837,394
Kite Realty Group Trust(b)	262,801		2,890,811
Potlatch Corp.	273,634		12,693,881

			49,265,586

Road & Rail – 2.2%
Con-way, Inc.(b)	167,355		7,382,029
Genesee & Wyoming, Inc., Class A(c)	207,868		7,799,207
Ryder System, Inc.(b)	135,440		8,397,280

			23,578,516

Semiconductors & Semiconductor Equipment – 2.3%
Cohu, Inc.(b)	230,704		3,649,737
Diodes, Inc.(b)(c)	248,509		4,584,991
ON Semiconductor Corp.(c)	772,119		5,219,525
Semtech Corp.(c)	216,006		3,015,444
Verigy Ltd.(c)	518,047		8,433,805

			24,903,502

Software – 2.7%
Mentor Graphics Corp.(b)(c)	517,448		5,873,035
Progress Software Corp.(c)	330,751		8,596,218
Quest Software, Inc.(c)	420,079		5,330,803
Radiant Systems, Inc.(c)	296,779		2,579,010
Sybase, Inc.(c)	240,639		7,368,366

			29,747,432

Specialty Retail – 2.7%
Genesco, Inc.(b)(c)	315,877		10,575,562
Jo-Ann Stores, Inc.(b)(c)	200,926		4,215,427
RadioShack Corp.	316,154		5,463,141
Sally Beauty Holdings, Inc.(b)(c)	1,121,911		9,648,435

			29,902,565


	Shares		Value (†)


COMMON STOCKS – continued

Textiles, Apparel & Luxury Goods – 2.0%
Carter’s, Inc.(c)		297,508	$	5,869,833
FGX International Holdings Ltd.(b)(c)		275,446		3,049,187
Fossil, Inc.(b)(c)		220,980		6,238,265
Hanesbrands, Inc.(b)(c)		300,501		6,535,897

				21,693,182

Thrifts & Mortgage Finance – 0.9%
Beneficial Mutual Bancorp, Inc.(b)(c)		480,075		6,072,949
Westfield Financial, Inc.(b)		384,086		3,956,086

				10,029,035

Water Utilities – 0.9%
American States Water Co.(b)		122,345		4,710,282
Middlesex Water Co.(b)		270,987		4,734,143

				9,444,425


TOTAL COMMON STOCKS
(Identified Cost $1,034,835,389)				1,059,986,743


EXCHANGE TRADED FUND – 1.0%

Diversified Financial Services – 1.0%
iShares Russell 2000 Value Index Fund(b)
(Identified Cost $10,504,021)		166,444		11,191,695


	Shares/ Principal Amount


SHORT-TERM INVESTMENTS – 22.9%
State Street Navigator Securities Lending Prime Portfolio(d)		195,864,078		195,864,078
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $54,488,968 on 10/01/2008 collateralized by $54,625,000 Federal National Mortgage Association, 4.330% due 7/28/2011 with a value of $55,580,938 including accrued interest (Note 2g of Notes to Financial Statements)	$	54,487,000		54,487,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $250,351,078)				250,351,078


TOTAL INVESTMENTS – 120.6%
(Identified Cost $1,295,690,488)(a)				1,321,529,516
Other assets less liabilities—(20.6)%				(225,880,689)


NET ASSETS – 100.0%			$	1,095,648,827


(†) See Note 2a of Notes to Financial Statements.
(a) Federal Tax Information:
At September 30, 2008, the net unrealized appreciation on investments based on a cost of $1,297,881,270 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	107,220,862
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(83,572,616)

Net unrealized appreciation			$	23,648,246

(b)

All or a portion of this security was on loan to brokers at September 30, 2008.

(c)

Non-income producing security.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Small Cap Value Fund – continued

(d)

Represents investment of securities lending collateral.

REITs

Real Estate Investment Trusts

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Commercial Banks	7.9	%
Commercial Services & Supplies	6.9
REITs	4.5
IT Services	4.5
Insurance	4.3
Health Care Providers & Services	3.6
Machinery	3.2
Specialty Retail	2.7
Energy Equipment & Services	2.7
Software	2.7
Chemicals	2.6
Electric Utilities	2.5
Communications Equipment	2.5
Aerospace & Defense	2.5
Electronic Equipment & Instruments	2.5
Media	2.4
Semiconductors & Semiconductor Equipment	2.3
Oil, Gas & Consumable Fuels	2.3
Road & Rail	2.2
Pharmaceuticals	2.0
Textiles, Apparel & Luxury Goods	2.0
Other Investments, less than 2% each	28.9
Short-Term Investments	22.9

Total Investments	120.6
Other assets less liabilities	(20.6	)

Net Assets	100.0	%

See accompanying notes to financial statements.

STATEMENTS OF ASSETS AND LIABILITIES

September 30, 2008


	Mid Cap Growth Fund			Small Cap Growth Fund			Small Cap Value Fund


Assets
Investments at cost	$	180,141,873		$	150,440,626		$	1,295,690,488
Net unrealized appreciation (depreciation)		(11,322,426	)		(2,540,082	)		25,839,028

Investments at value		168,819,447			147,900,544			1,321,529,516
Cash		182			2,296			105,664
Receivable for Fund shares sold		466,881			328,689			6,670,686
Receivable for securities sold		3,200,961			1,225,292			13,521,237
Dividends and interest receivable		56,298			34,679			1,128,754
Receivable from investment adviser (Note 4)		32,715			36,159			101,061
Securities lending income receivable		15,033			24,412			98,283

Total Assets		172,591,517			149,552,071			1,343,155,201


Liabilities
Collateral on securities loaned, at value (Note 2)		22,705,247			22,691,148			195,864,078
Payable for securities purchased		1,109,286			1,795,490			32,928,331
Payable for Fund shares redeemed		2,267,241			435,529			17,697,226
Management fees payable (Note 4)		111,530			81,329			714,720
Administrative fees payable (Note 4)		7,000			5,103			44,860
Deferred Trustees’ fees (Note 4)		42,576			40,103			113,489
Service and distribution fees payable (Note 4)		820			536			4,225
Other accounts payable and accrued expenses		44,474			65,733			139,445

Total Liabilities		26,288,174			25,114,971			247,506,374

Net Assets	$	146,303,343		$	124,437,100		$	1,095,648,827

Net Assets consist of:
Paid-in capital	$	262,590,406		$	332,005,808		$	1,117,571,112
Accumulated net investment income (loss)		(42,576	)		(40,103	)		1,842,018
Accumulated net realized loss on investments and foreign currency transactions		(104,922,061	)		(204,988,523	)		(49,603,331	)
Net unrealized appreciation (depreciation) on investments and foreign currency translations		(11,322,426	)		(2,540,082	)		25,839,028

Net Assets	$	146,303,343		$	124,437,100		$	1,095,648,827


Net Asset Value and Offering Price
Institutional Class
Net assets	$	25,779,418		$	44,540,086		$	553,268,333

Shares of beneficial interest		1,188,171			3,407,805			25,132,292

Net asset value, offering and redemption price per share	$	21.70		$	13.07		$	22.01

Retail Class
Net assets	$	120,523,925		$	79,897,014		$	464,525,207

Shares of beneficial interest		5,706,725			6,296,278			21,318,846

Net asset value, offering and redemption price per share	$	21.12		$	12.69		$	21.79

Admin Class
Net assets	$	—		$	—		$	77,855,287

Shares of beneficial interest		—			—			3,638,028

Net asset value, offering and redemption price per share	$	—		$	—		$	21.40

Value of securities on loan (Note 2)	$	22,615,127		$	22,689,377		$	197,462,353

See accompanying notes to financial statements.

STATEMENTS OF OPERATIONS

For the Year Ended September 30, 2008


	Mid Cap Growth Fund			Small Cap Growth Fund			Small Cap Value Fund

Investment Income
Dividends	$	469,227		$	221,760		$	12,128,483	*
Interest		160,344			102,730			980,421
Securities lending income (Note 2)		186,710			199,641			1,537,445
Less net foreign taxes withheld		(12,805	)		—			—

		803,476			524,131			14,646,349


Expenses
Management fees (Note 4)		909,027			726,130			8,053,932
Distribution fees—Retail Class (Note 4)		228,997			140,202			1,174,810
Service and distribution fees—Admin Class (Note 4)		—			—			395,796
Trustees’ fees and expenses (Note 4)		11,123			10,806			22,232
Administrative fees (Note 4)		61,279			49,032			546,547
Custodian fees and expenses		27,288			32,363			45,613
Transfer agent fees and expenses—Institutional Class (Note 4)		13,414			17,715			258,415
Transfer agent fees and expenses—Retail Class (Note 4)		102,699			114,743			812,511
Transfer agent fees and expenses—Admin Class (Note 4)		—			—			266,375
Audit and tax services fees		39,275			36,021			40,169
Registration fees		87,242			44,426			109,444
Shareholder reporting expenses		15,619			23,916			188,329
Legal fees		2,797			2,341			27,455
Expense recapture—Institutional Class (Note 4)		835			—			—
Miscellaneous expenses		8,185			7,606			45,736

Total expenses		1,507,780			1,205,301			11,987,364
Less fee reduction and/or expense reimbursement (Note 4)		(66,565	)		(96,890	)		(788,326	)

Net expenses		1,441,215			1,108,411			11,199,038

Net investment income (loss)		(637,739	)		(584,280	)		3,447,311


Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net Realized Gain (Loss) on:
Investments		(16,802,159	)		(6,171,517	)		(37,271,375	)
Foreign currency transactions		166			—			—
Payments by affiliates (Note 4)		1,112			—			—

Net Change in Unrealized Appreciation (Depreciation) on:
Investments		(24,348,722	)		(10,322,096	)		(141,209,963	)
Foreign currency translations		(109	)		—			—

Net realized and unrealized loss on investments and foreign currency transactions		(41,149,712	)		(16,493,613	)		(178,481,338	)


Net Decrease in Net Assets Resulting from Operations	$	(41,787,451	)	$	(17,077,893	)	$	(175,034,027	)

*	Amount includes a special dividend of $926,046 in which the source of the dividend has not been determined by the issuer.

See accompanying notes to financial statements.

STATEMENTS OF CHANGES IN NET ASSETS

Mid Cap Growth Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment loss	$	(637,739	)	$	(288,083	)
Net realized gain (loss) on investments and foreign currency transactions		(16,800,881	)		7,015,246
Net change in net unrealized appreciation (depreciation) on investments and foreign currency translations		(24,348,831	)		8,067,259

Increase (decrease) in net assets from operations		(41,787,451	)		14,794,422

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		—			—
Retail Class		—			—
Capital Gains:
Institutional Class		—			—
Retail Class		—			—

Total distributions		—			—

Increase (Decrease) in Net Assets Derived from Capital Shares Transactions (Note 8)		133,294,170			(4,132,735	)

Total increase in net assets		91,506,719			10,661,687
Net Assets
Beginning of year		54,796,624			44,134,937

End of year	$	146,303,343		$	54,796,624

Accumulated Net Investment Loss	$	(42,576	)	$	(38,169	)

Small Cap Growth Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment loss	$	(584,280	)	$	(143,375	)
Net realized gain (loss) on investments		(6,171,517	)		3,362,779
Net change in net unrealized appreciation (depreciation) on investments		(10,322,096	)		5,500,407

Increase (decrease) in net assets from operations		(17,077,893	)		8,719,811

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		—			—
Retail Class		—			—
Capital Gains:
Institutional Class		—			—
Retail Class		—			—

Total distributions		—			—

Increase in Net Assets Derived from Capital Shares Transactions (Note 8)		92,473,941			16,896,224

Redemption Fees
Institutional Class		11,629			346
Retail Class		17,229			186

Total increase in net assets		75,424,906			25,616,567
Net Assets
Beginning of year		49,012,194			23,395,627

End of year	$	124,437,100		$	49,012,194

Accumulated Net Investment Loss	$	(40,103	)	$	(35,571	)

See accompanying notes to financial statements.

STATEMENTS OF CHANGES IN NET ASSETS – continued

Small Cap Value Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	3,447,311		$	2,636,586
Net realized gain (loss) on investments		(37,271,375	)		100,922,002
Net change in net unrealized appreciation (depreciation) on investments		(141,209,963	)		34,456,656

Increase (decrease) in net assets from operations		(175,034,027	)		138,015,244

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(1,132,960	)		(2,801,001	)
Retail Class		—			(1,058,622	)
Admin Class		—			(101,702	)
Capital Gains:
Institutional Class		(51,944,175	)		(50,563,842	)
Retail Class		(47,065,282	)		(32,749,822	)
Admin Class		(8,031,853	)		(7,983,100	)

Total distributions		(108,174,270	)		(95,258,089	)

Increase in Net Assets Derived from Capital Shares Transactions (Note 8)		302,201,210			235,053,214

Redemption Fees
Institutional Class		20,568			16,563
Retail Class		18,348			13,201
Admin Class		3,084			2,493

Total increase in net assets		19,034,913			277,842,626
Net Assets
Beginning of year		1,076,613,914			798,771,288

End of year	$	1,095,648,827		$	1,076,613,914

Accumulated Net Investment Income	$	1,842,018		$	334,317

See accompanying notes to financial statements.

THIS PAGE INTENTIONALLY LEFT BLANK

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment (loss)^(c)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains
Mid Cap Growth Fund

Institutional Class
9/30/2008	$	27.51	$	(0.10	)	$	(5.71	)	$	(5.81	)	$	—		$	—
9/30/2007		20.13		(0.11	)^(d)		7.49			7.38			—			—
9/30/2006		19.00		(0.10	)		1.23			1.13			—			—
9/30/2005		15.50		(0.10	)		3.78			3.68			(0.18	)		—
9/30/2004		13.69		(0.13	)		1.94			1.81			—			—

Retail Class
9/30/2008	$	26.84	$	(0.15	)	$	(5.57	)	$	(5.72	)	$	—		$	—
9/30/2007		19.69		(0.16	)^(d)		7.31			7.15			—			—
9/30/2006		18.63		(0.15	)		1.21			1.06			—			—
9/30/2005		15.20		(0.14	)		3.70			3.56			(0.13	)		—
9/30/2004		13.46		(0.16	)		1.90			1.74			—			—

(a) Had certain expenses not been reduced during the period, if applicable, total returns would have been lower. Periods less than one year, if applicable, are not annualized.

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

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

(d) Includes a non-recurring payment of $0.02 per share.

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

(f) Includes expense recapture of less than 0.01%.

See accompanying notes to financial statements.


									Ratios to Average Net Assets:

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



$	—		$	21.70	(21.1	)	$	25,779	1.00	^(f)	1.00	^(f)	(0.36	)	299
	—			27.51	36.7			24,143	1.00		1.10		(0.47	)	194
	—			20.13	6.0			17,467	1.00		1.12		(0.49	)	211
	(0.18	)		19.00	23.9			26,159	1.00		1.21		(0.60	)	280
	—			15.50	13.2			25,191	1.00		1.17		(0.84	)	284


$	—		$	21.12	(21.3	)	$	120,524	1.25		1.32		(0.58	)	299
	—			26.84	36.3			30,654	1.25		1.43		(0.71	)	194
	—			19.69	5.7			26,668	1.25		1.52		(0.72	)	211
	(0.13	)		18.63	23.6			25,802	1.25		1.50		(0.85	)	280
	—			15.20	12.9			25,382	1.25		1.42		(1.10	)	284

See accompanying notes to financial statements.

FINANCIAL HIGHLIGHTS – continued

For a share outstanding throughout each period.


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

Institutional Class
9/30/2008	$	15.87	$	(0.07	)	$	(2.73	)	$	(2.80	)	$	—		$	—		$	—
9/30/2007		12.00		(0.06	)^(f)		3.93			3.87			—			—			—
9/30/2006		11.08		(0.08	)		0.99			0.91			—			—			—
9/30/2005		8.96		(0.08	)		2.20			2.12			—			—			—
9/30/2004		8.59		(0.09	)		0.46			0.37			—			—			—

Retail Class
9/30/2008	$	15.45	$	(0.10	)	$	(2.66	)	$	(2.76	)	$	—		$	—		$	—
9/30/2007		11.71		(0.09	)^(f)		3.83			3.74			—			—			—
9/30/2006		10.84		(0.11	)		0.97			0.86			—			—			—
9/30/2005		8.78		(0.11	)		2.17			2.06			—			—			—
9/30/2004		8.45		(0.11	)		0.44			0.33			—			—			—

Small Cap Value Fund

Institutional Class
9/30/2008	$	28.77	$	0.11	⁽ⁱ⁾	$	(4.03	)	$	(3.92	)	$	(0.06	)	$	(2.78	)	$	(2.84	)
9/30/2007		27.69		0.12	^(f)(g)		4.29			4.41			(0.17	)		(3.16	)		(3.33	)
9/30/2006		27.43		0.13			2.70			2.83			(0.15	)		(2.42	)		(2.57	)
9/30/2005		25.75		0.13			4.22			4.35			(0.02	)		(2.65	)		(2.67	)
9/30/2004		21.34		0.04			4.97			5.01			(0.05	)		(0.55	)		(0.60	)

Retail Class
9/30/2008	$	28.52	$	0.05	⁽ⁱ⁾	$	(4.00	)	$	(3.95	)	$	—		$	(2.78	)	$	(2.78	)
9/30/2007		27.46		0.04	^(f)(g)		4.28			4.32			(0.10	)		(3.16	)		(3.26	)
9/30/2006		27.23		0.06			2.67			2.73			(0.08	)		(2.42	)		(2.50	)
9/30/2005		25.62		0.06			4.20			4.26			—			(2.65	)		(2.65	)
9/30/2004		21.25		(0.02	)		4.95			4.93			(0.01	)		(0.55	)		(0.56	)

Admin Class
9/30/2008	$	28.13	$	(0.01	)⁽ⁱ⁾	$	(3.94	)	$	(3.95	)	$	—		$	(2.78	)	$	(2.78	)
9/30/2007		27.14		(0.03	)^(f)(g)		4.22			4.19			(0.04	)		(3.16	)		(3.20	)
9/30/2006		26.94		(0.01	)		2.65			2.64			(0.02	)		(2.42	)		(2.44	)
9/30/2005		25.43		(0.00	)		4.16			4.16			—			(2.65	)		(2.65	)
9/30/2004		21.13		(0.08	)		4.93			4.85			—			(0.55	)		(0.55	)

(a) Had certain expenses not been reduced during the period, if applicable, total returns would have been lower. Periods less than one year, if applicable, are not annualized.

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

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

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

(e) Includes expense recapture of 0.02%.

(f) Includes a non-recurring payment of $0.01 per share and $0.00 per share for Small Cap Growth Fund and Small Cap Value Fund, respectively.

(g) Includes a non-recurring dividend of $0.05 per share.

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

(i) Includes a special dividend of $0.02 per share in which the source of the dividend has not been determined by the issuer.

See accompanying notes to financial statements.



								Ratios to Average Net Assets:

Redemption fees^(d)		Net asset value, end of the period		Total return (%)^(a)		Net assets, end of the period (000’s)		Net expenses (%)^(b)(h)		Gross expenses (%)^(h)		Net investment income (loss) (%)^(h)		Portfolio turnover rate (%)



$	0.00	$	13.07	(17.6	)	$	44,540	1.00		1.01		(0.47	)	92
	0.00		15.87	32.3			28,088	1.00		1.23		(0.47	)	83
	0.01		12.00	8.3			20,414	1.00		1.38		(0.69	)	100
	0.00		11.08	23.7			15,785	1.00		1.70		(0.85	)	227
	0.00		8.96	4.3			15,867	1.00		1.31		(0.95	)	217


$	0.00	$	12.69	(17.9	)	$	79,897	1.25		1.42		(0.70	)	92
	0.00		15.45	31.9			20,924	1.25		1.50		(0.66	)	83
	0.01		11.71	8.0			2,981	1.25		1.92		(0.94	)	100
	0.00		10.84	23.5			3,592	1.25		1.87		(1.14	)	227
	0.00		8.78	3.9			14,589	1.25		1.52		(1.19	)	217




$	0.00	$	22.01	(15.0	)	$	553,268	0.89		0.89		0.47		61
	0.00		28.77	17.0			534,776	0.89		0.89		0.43		57
	0.00		27.69	11.2			442,714	0.89	^(e)	0.89	^(e)	0.47		62
	0.00		27.43	18.0			403,110	0.90		0.93		0.48		59
	0.00		25.75	23.8			346,356	0.90		0.93		0.16		70


$	0.00	$	21.79	(15.2	)	$	464,525	1.15		1.27		0.21		61
	0.00		28.52	16.7			465,055	1.15		1.24		0.15		57
	0.00		27.46	10.9			291,690	1.15		1.20		0.21		62
	0.00		27.23	17.7			235,948	1.15		1.20		0.24		59
	0.00		25.62	23.5			173,411	1.15		1.18		(0.08	)	70


$	0.00	$	21.40	(15.4	)	$	77,855	1.40		1.68		(0.04	)	61
	0.00		28.13	16.4			76,783	1.40		1.56		(0.10	)	57
	0.00		27.14	10.6			64,367	1.40		1.46		(0.04	)	62
	0.00		26.94	17.4			67,505	1.40		1.43		(0.01	)	59
	0.00		25.43	23.3			62,680	1.40		1.43		(0.33	)	70

See accompanying notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

September 30, 2008

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 Trusts in multiple series. Information presented in these financial statements pertains to certain equity funds of the Trusts; the financial statements for the remaining equity funds and the fixed income 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 Mid Cap Growth Fund (the “Mid Cap Growth Fund”)

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

Each Fund offers Institutional Class Shares and Retail Class Shares. In addition, Small Cap Value Fund offers Admin Class Shares.

Most expenses of the Trusts can be directly attributed to a fund. Expenses which cannot be directly attributed to a fund are generally apportioned based on the relative net assets of each of the funds in the Trusts. Expenses of a fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (including the Rule 12b-1 service and distribution fees and transfer agent fees applicable to such class). 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 dividends from net investment income on each class of shares.

2. Significant Accounting Policies. The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

a. Security Valuation. Equity securities, including closed-end investment companies and exchange-traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and approved by the Board of Trustees. Such pricing services generally use the security’s last sale price on the exchange or market where the security is primarily traded or, if there is no reported sale during the day, the closing bid price. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking a NOCP, at the most recent bid quotation on the applicable NASDAQ Market. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser using consistently applied procedures under the general supervision of the Board of Trustees. Investments in other open-end investment companies are valued at their net asset value each day.

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

recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. Distributions received from investments in securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds’ investments in real estate investment trusts (“REITs”) are reported to the Funds after the end of the fiscal year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the fiscal year. Estimates are based on the most recent REIT distribution information available. Investment income is recorded net of foreign taxes withheld when applicable. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

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

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

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

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

Each Fund may purchase investments of foreign issuers. Investing in securities of foreign issuers involves special risks and considerations not typically associated with investing in U.S. companies and securities of the U.S. government. These risks include revaluation of currencies and the risk of appropriation. Moreover, the markets for securities of many foreign issuers may be less liquid and the price of such securities may be more volatile than those of comparable U.S. companies and the U.S. government.

d. Forward Foreign Currency Contracts. Each Fund may enter into forward foreign currency contracts. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell generally are used to hedge a Fund’s investments against currency fluctuation. Also, a contract to buy or sell can offset a previous contract. These contracts involve market risk in excess of the unrealized gain or loss reflected in the Fund’s Statement 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.

All contracts are “marked-to-market” daily at the applicable exchange rates and any gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. At September 30, 2008, there were no open forward currency contracts.

e. Federal and Foreign Income Taxes. Each Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of the Funds’ tax positions taken on federal and state tax returns that remain subject to examinations (tax years ended September 30, 2005-2008) and has concluded that no provisions for income tax are required. Fund 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 taxes on income and gains on investments that are accrued based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign governments may also impose taxes or other payments on investments with respect to foreign securities. Such taxes are accrued as applicable.

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

f. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes for items such as distributions from REITs, foreign currency transactions and net operating losses. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to securities lending collateral gain/loss adjustment, deferred Trustees’ fees, REIT basis adjustments and wash sales. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2008 and 2007 was as follows:


	2008 Distributions Paid From:						2007 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Mid Cap Growth Fund	$	—	$	—	$	—	$	—	$	—	$	—
Small Cap Growth Fund		—		—		—		—		—		—
Small Cap Value Fund		16,873,484		91,300,786		108,174,270		19,298,487		75,959,602		95,258,089

Differences between these amounts and those reported in the Statements of Changes in Net Assets are primarily attributable to different book and tax treatment for short-term capital gains.

As of September 30, 2008, the components of distributable earnings on a tax basis were as follows:


	Mid Cap Growth Fund			Small Cap Growth Fund			Small Cap Value Fund
Undistributed ordinary income	$	—		$	—		$	1,955,507
Undistributed long-term capital gains		—			—			331,178

Total undistributed earnings		—			—			2,286,685
Capital Loss Carryforward:
Expires September 30, 2010		(65,130,772	)		(138,314,515	)		—
Expires September 30, 2011		(21,142,388	)		(59,283,040	)		—
Total capital loss carryforward		(86,273,160	)		(197,597,555	)		—
Deferred net capital losses (post-October 2007)		(18,347,531	)		(7,364,469	)		(47,743,728	)
Unrealized appreciation (depreciation)		(11,623,796	)		(2,566,582	)		23,648,246

Total accumulated earnings (losses)	$	(116,244,487	)	$	(207,528,606	)	$	(21,808,797	)

Capital loss carryforward utilized in the current year	$	1,847,474		$	1,209,729		$	—

g. Repurchase Agreements. Each Fund, through its custodian, receives delivery of the underlying securities collateralizing repurchase agreements. It is each Fund’s policy that the market value of the collateral be at least equal to 102% of the repurchase price, including interest. The repurchase agreements are tri-party arrangements whereby the collateral is held at the custodian bank 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.

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 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 of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value of loaned securities for non-U.S. equities; and at least 100% of the market value 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. The value of securities on loan to borrowers and the value of collateral held by the Funds with respect to such loans at September 30, 2008 were as follows:


	Value of Securities on Loan		Value of Collateral
Mid Cap Growth Fund	$	22,615,127	$	22,705,247
Small Cap Growth Fund		22,689,377		22,691,148
Small Cap Value Fund		197,462,353		195,864,078

Subsequent to September 30, 2008, all open securities lending transactions were closed.

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.

j. New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management has evaluated the impact the adoption of FAS 157 will have on the Funds’ financial statements and believes that such impact will be limited to expanded disclosure in the Funds’ financial statements regarding inputs used in determining the value of the Funds’ investments.

In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“FAS 161”), was issued and will be effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about funds’ derivative and hedging activities. Management is currently evaluating the impact the adoption of FAS 161 will have on the Funds’ financial statement disclosures.

3. Purchases and Sales of Securities. For the year ended September 30, 2008, purchases and sales of securities (excluding short-term investments) were as follows:


Fund	Purchases		Sales
Mid Cap Growth Fund	$	461,496,904	$	336,296,687
Small Cap Growth Fund		175,639,765		84,821,824
Small Cap Value Fund		860,871,284		625,425,569

4. 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
Mid Cap Growth Fund		0.75%
Small Cap Growth Fund		0.75%
Small Cap Value Fund		0.75%

Loomis Sayles has given binding undertakings to the Funds to reduce management fees and/or reimburse certain expenses associated with the Funds to limit their operating expenses. These undertakings are in effect until January 31, 2009 and will be reevaluated on an annual basis. For the year ended September 30, 2008, 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
Mid Cap Growth Fund	1.00	%	1.25	%	—
Small Cap Growth Fund	1.00	%	1.25	%	—
Small Cap Value Fund	0.90	%	1.15	%	1.40	%

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

For the year ended September 30, 2008, the management fees for each Fund were as follows:


Fund	Management Fee		Percentage of Average Daily Net Assets
Mid Cap Growth Fund	$	909,027	0.75%
Small Cap Growth Fund		726,130	0.75%
Small Cap Value Fund		8,053,932	0.75%

For the year ended September 30, 2008, class specific expenses have been reimbursed as follows:


Fund	Reimbursement
Mid Cap Growth Fund	$	64,519
Small Cap Growth Fund		95,181
Small Cap Value Fund		767,446

Loomis Sayles shall be permitted to recover expenses it has borne under the expense limitation agreement (whether through reduction of its management fees or otherwise) on a class by class basis in later periods to the extent the expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such reduced fees/expenses more than one year after the end of the fiscal year in which the fee/expense was reduced. The amounts subject to possible reimbursement under the expense limitation agreements at September 30, 2008 were as follows:


	Expenses Subject to Possible Reimbursement Until September 30, 2009
Fund	Institutional Class		Retail Class		Admin Class		Total
Mid Cap Growth Fund	$	—	$	64,519	$	—	$	64,519
Small Cap Growth Fund		2,492		92,689		—		95,181
Small Cap Value Fund		—		546,480		220,966		767,446

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

For the year ended September 30, 2008, Loomis Sayles reimbursed the Mid Cap Growth Fund $1,112 for losses incurred in connection with a trading error.

b. Administrative Fees. Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and subcontracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0500% of the next $15 billion, 0.0425% of the next $30 billion and 0.0375% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts , Loomis Sayles Funds Trusts and the Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to an annual fee of $75,000 plus $12,500 per class and an additional $75,000 if managed by multiple subadvisors in their first calendar year of operations.

Effective October 1, 2007, State Street Bank agreed to reduce the fees it receives from Natixis Advisors for serving as sub-administrator to the Funds. Also, effective October 1, 2007, Natixis Advisors gave a binding contractual undertaking to the Funds to waive the administrative fees paid by the Funds in an amount equal to the reduction in sub-administrative fees discussed above. The waiver was in effect through June 30, 2008.

Prior to July 1, 2008, the Funds paid Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0675% of the first $5 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0625% of the next $5 billion, 0.0500% of the next $20 billion and 0.045% of such assets in excess of $30 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $5 million, which was reevaluated on an annual basis. New funds were subject to an annual fee of $50,000 plus $12,500 per class and an additional $50,000 if managed by multiple subadvisors in their first calendar year of operations.

For the year ended September 30, 2008, amounts paid to Natixis Advisors for administrative fees were as follows:


Fund	Gross Administrative Fees		Waiver of Administrative Fees		Net Administrative Fees
Mid Cap Growth Fund	$	61,279	$	2,046	$	59,233
Small Cap Growth Fund		49,032		1,709		47,323
Small Cap Value Fund		546,547		20,880		525,667

c. Service and Distribution Fees. Natixis Distributors, L.P. (“Natixis Distributors”), a wholly owned subsidiary of Natixis US, has entered into a distribution agreement with the Trust. Pursuant to this agreement, Natixis Distributors serves as principal underwriter of each Fund.

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

Under the respective Retail Class and Admin Class Plans, each Fund pays Natixis Distributors a monthly distribution fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Retail Class and Admin Class Shares, as reimbursement for expenses incurred by Natixis Distributors in providing personal services to investors in Retail Class and Admin Class Shares and/or maintenance of shareholder accounts. In addition, the Admin Class shares of the Small Cap Value Fund may pay an administrative service fee, at an annual rate not to exceed 0.25% of the average daily net assets attributable to Admin Class shares, to securities dealers or financial intermediaries for providing personal service and account maintenance for their customers who hold such shares.

For the year ended September 30, 2008, the Funds paid the following service and distribution fees:


	Service Fees		Distribution Fees
Fund	Admin Class		Retail Class		Admin Class
Mid Cap Growth Fund	$	—	$	228,997	$	—
Small Cap Growth Fund		—		140,202		—
Small Cap Value Fund		197,898		1,174,810		197,898

d. Sub-Transfer Agent Fees. Natixis Distributors has entered into agreements with financial intermediaries to provide certain recordkeeping, processing, shareholder communications and other services to customers of the intermediaries and has agreed to compensate the intermediaries for providing those services. Certain services would be provided by the Funds if the shares of those customers were registered directly with the Funds’ transfer agent. Accordingly, the Funds agreed to pay a portion of the intermediary fees attributable to shares of the Fund held by the intermediary (which generally is a percentage of the value of shares held) not exceeding what the Funds would have paid its transfer agent had each customer’s shares been registered directly with the transfer agent instead of held through the intermediary. Natixis Distributors pays the remainder of the fees. Listed below are the fees incurred by the Funds which are included in the transfer agent fees and expenses in the Statements of Operations.


	Sub-Transfer Agent Fees
Fund	Institutional Class		Retail Class		Admin Class
Mid Cap Growth Fund	$	10,845	$	100,391	$	—
Small Cap Growth Fund		16,844		51,624		—
Small Cap Value Fund		247,244		758,261		262,375

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

he or she attends in person and $2,500 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,250 for each Committee meeting that he or she attends in person and $3,125 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 the Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each Fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2008, each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $55,000. Each Independent Trustee also received a meeting attendance fee of $6,000 for each meeting of the Board of Trustees that he or she attended in person and $3,000 for each meeting that he or she attended telephonically. In addition, each Contract Review and Governance Committee member received $4,000 for each committee meeting that he or she attended in person and $2,000 for each committee meeting that he or she attended telephonically. Each Audit Committee member received $5,000 for each committee meeting that he or she attended in person and $2,500 for each committee meeting that he or she attended telephonically. The Chairperson of the Board and committee chair retainers were $200,000 and $10,000, respectively.

A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Funds until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain funds of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts, and Hansberger International Series, and are 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.

f. Redemption Fees. Shareholders of Small Cap Growth Fund and Small Cap Value Fund are charged a 2% redemption fee if they redeem, including redeeming by exchange, any class of shares of such Funds within 60 days of their acquisition (including acquisition by exchange). The redemption fee is intended to offset the costs to the Funds of short-term trading, such as portfolio transaction and market impact costs associated with redemption activity and administrative costs associated with processing redemptions. The redemption fee is deducted from the shareholder’s redemption or exchange proceeds and is paid to the Fund.

The “first-in, first-out” method is used to determine the holding period of redeemed or exchanged shares, which means that if a shareholder acquired shares on different days, the shares acquired first will be redeemed or exchanged first for purposes of determining whether the redemption fee applies. A new holding period begins with each purchase or exchange. These fees are accounted for as an addition to paid-in capital and are presented in the Statements of Changes in Net Assets.

5. Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each Fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.09% 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.

Prior to March 12, 2008, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participated in a $75,000,000 committed line of credit provided by State Street Bank.

For the year ended September 30, 2008, the Funds had no borrowings under these agreements.

6. Brokerage Commission Recapture. Each Fund has entered into agreements with certain brokers whereby the brokers will rebate a portion of brokerage commissions. All amounts rebated by the brokers are returned to the Funds under such agreements and are included in realized gains in the Statements of Operations. For the year ended September 30, 2008, amounts rebated under these agreements were as follows:


Fund	Rebates
Mid Cap Growth Fund	$	27,162
Small Cap Growth Fund		13,724
Small Cap Value Fund		117,277

7. Shareholders. At September 30, 2008, the Loomis Sayles Funded Pension Plan and the Loomis Sayles Employees’ Profit Sharing Retirement Plan held Institutional Class shares of beneficial interest in the Funds as follows:


Fund	Pension Plan	Profit Sharing Retirement Plan
Mid Cap Growth Fund	320,493	370,439
Small Cap Growth Fund	375,466	383,591
Small Cap Value Fund	366,402	733,101

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


	Mid Cap Growth Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	835,746		$	23,099,020		122,987		$	2,932,877
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(525,115	)		(13,663,476	)	(113,087	)		(2,616,811	)

Net change	310,631		$	9,435,544		9,900		$	316,066


Retail Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	7,376,061		$	191,485,150		404,396		$	9,618,611
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(2,811,222	)		(67,626,524	)	(616,665	)		(14,067,412	)

Net change	4,564,839		$	123,858,626		(212,269	)	$	(4,448,801	)

Increase (decrease) from capital share transactions	4,875,470		$	133,294,170		(202,369	)	$	(4,132,735	)


	Small Cap Growth Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	2,094,507		$	30,602,699		227,764		$	3,236,460
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(456,742	)		(6,441,388	)	(158,397	)		(2,160,742	)

Net change	1,637,765		$	24,161,311		69,367		$	1,075,718


Retail Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	6,898,095		$	94,809,730		1,247,066		$	17,800,763
Issued in connection with the reinvestment of distributions	—			—		—			—
Redeemed	(1,956,386	)		(26,497,100	)	(147,091	)		(1,980,257	)

Net change	4,941,709		$	68,312,630		1,099,975		$	15,820,506

Increase (decrease) from capital share transactions	6,579,474		$	92,473,941		1,169,342		$	16,896,224

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008


	Small Cap Value Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	9,681,674		$	228,728,526		3,665,690		$	103,476,796
Issued in connection with the reinvestment of distributions	1,942,239			49,352,283		1,908,336			50,494,585
Redeemed	(5,076,716	)		(120,789,687	)	(2,978,936	)		(83,598,708	)

Net change	6,547,197		$	157,291,122		2,595,090		$	70,372,673


Retail Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	10,268,147		$	242,357,595		9,567,844		$	267,672,472
Issued in connection with the reinvestment of distributions	1,850,508			46,632,804		1,279,692			33,617,503
Redeemed	(7,108,230	)		(166,486,060	)	(5,159,588	)		(145,568,951	)

Net change	5,010,425		$	122,504,339		5,687,948		$	155,721,024


Admin Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	2,168,929		$	51,105,918		1,317,587		$	35,992,658
Issued in connection with the reinvestment of distributions	271,955			6,747,215		292,721			7,599,049
Redeemed	(1,532,487	)		(35,447,384	)	(1,252,476	)		(34,632,190	)

Net change	908,397		$	22,405,749		357,832		$	8,959,517

Increase (decrease) from capital share transactions	12,466,019		$	302,201,210		8,640,870		$	235,053,214

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees of Loomis Sayles Funds I and Loomis Sayles Funds II and Shareholders of Loomis Sayles Small Cap Value Fund, Loomis Sayles Mid Cap Growth Fund, Loomis Sayles Small Cap Growth Fund:

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Small Cap Value Fund, a series of Loomis Sayles Funds I and the Loomis Sayles Mid Cap Growth Fund and Loomis Sayles Small Cap Growth Fund, each a series of Loomis Sayles Funds II (collectively, “the Funds”), at September 30, 2008, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2008

2008 U.S. TAX DISTRIBUTION INFORMATION TO SHAREHOLDERS (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2008, a percentage of dividends distributed by the Funds listed below qualify for the dividends received deduction for corporate shareholders. These percentages are as follows:


Fund		Qualifying Percentage
Small Cap Value Fund		34.45%

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, 2008.


Fund	Amount
Small Cap Value Fund	$	91,300,786

Qualified Dividend Income. For the fiscal year ended September 30, 2008, 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 5% to 15% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2008, complete information will be reported in conjunction with Form 1099-DIV.


Fund
Mid Cap Growth Fund
Small Cap Growth Fund
Small Cap Value Fund

TRUSTEE AND OFFICER INFORMATION

The tables below provide certain information regarding the Trustees and officers of Loomis Sayles Funds I and Loomis Sayles Funds II (the “Trusts”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Trusts’ Statements of Additional Information include additional information about the Trustees of the Trusts and are available by calling Loomis Sayles at 800-343-2029.


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen* and Other Directorships Held**

Independent Trustees
Graham T. Allison, Jr. (1940)	Trustee Since 2003 Contract Review and Governance Committee Member	Douglas Dillon Professor and Director of the Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University	41 Director, Taubman Centers, Inc. (real estate investment trust)

Charles D. Baker (1956)	Trustee Since 2005 Contract Review and Governance Committee Member	President and Chief Executive Officer, Harvard Pilgrim Health Care (health plan)	41 None

Edward A. Benjamin (1938)	Trustee Since 2002 Chairman of the Contract Review and Governance Committee	Retired	41 None

Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Audit Committee	President and Chief Executive Officer, Cain Brothers & Company, Incorporated (investment banking)	41 Director, Sheridan Healthcare Inc. (physician practice management)

Kenneth A. Drucker (1945)	Trustee Since 2008 Contract Review and Governance Committee Member	Formerly, Treasurer, Sequa Corp. (manufacturing)	41 Director, M Fund, Inc. (registered investment company)

Jonathan P. Mason (1958)	Trustee Since 2007 Audit Committee Member	Chief Financial Officer, Cabot Corp. (specialty chemicals); formerly, Vice President and Treasurer, International Paper Company; formerly, Chief Financial Officer, Carter Holt Harvey (forest products)	41 None

Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee since 2003 Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting); formerly, Senior Vice President and Director, The Boston Consulting Group, Inc. (management consulting)	41 Director, Verizon Communications; Director, Rohm and Haas Company (specialty chemicals); Director, AES Corporation (international power company)


Name and Year of Birth	Position(s) Held with the Trust, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen* and Other Directorships Held**

Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School; and formerly, Dean for Finance & Chief Financial Officer, Harvard Medical School	41 None

Interested Trustees
Robert J. Blanding¹ (1947) 555 California Street San Francisco, CA 94104	President and Chief Executive Officer of Loomis Sayles Funds I and Chief Executive Officer of Loomis Sayles Funds II; Trustee since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	41 None

John T. Hailer² (1960)	Trustee Since 2003	President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.; formerly, President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P., Natixis Distributors, L.P. and Natixis Global Associates, Inc.	41 None

Each Trustee serves until retirement, resignation or removal from the Board of Trustees. The current retirement age is 72. The position of Chairperson of the Board is appointed for a two-year term. Ms. Moose was appointed to serve an additional two-year term as the Chairperson of the Board of Trustees on September 14, 2007.

Each person listed above, except as noted, holds the same position(s) with the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Gateway Trust and the Natixis Cash Management Trust (collectively, the “Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (collectively, the “Loomis Sayles Funds Trusts”), and Hansberger International Series. Previous positions during the past five years with Natixis Distributors, L.P. (the “Distributor”), Natixis Asset Management Advisors, L.P. (“Natixis Advisors”), or Loomis, Sayles & Company, L.P. are omitted if not materially different from a Trustee’s or officer’s current position with such entity.

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

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

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


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

Officers of the Trust
Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk (formerly, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk), Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.

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

David Giunta (1965)	President of Loomis, Sayles Funds II and Executive Vice President of Loomis, Sayles Funds I	Since March 2008	President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; formerly, President, Fidelity Charitable Gift Fund; and formerly, Senior Vice President, Fidelity Brokerage Company

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

Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Director, PFPC Inc.

Robert Krantz (1964)	Executive Vice President	Since September 2007	Executive Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.

*	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 Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series. Mr. Fuss is not an officer of the Natixis Funds Trusts or the Hansberger International Series. Previous positions during the past five years with the Distributor, Natixis Advisors or Loomis Sayles are omitted if not materially different from a Trustee’s or officer’s current position with such entity.

LOGO

Loomis Sayles Bond Fund

Loomis Sayles Fixed Income Fund

Loomis Sayles Global Bond Fund

Loomis Sayles Inflation Protected Securities Fund

Loomis Sayles Institutional High Income Fund

Loomis Sayles Intermediate Duration Fixed Income Fund

Loomis Sayles Investment Grade Fixed Income Fund



TABLE OF CONTENTS

Fund and Manager Reviews		1

Portfolio of Investments		21

Statements of Assets and Liabilities		113

Statements of Operations		115

Statements of Changes in Net Assets		117

Financial Highlights		121

Notes to Financial Statements		127

ANNUAL REPORT

SEPTEMBER 30, 2008

FUND AND MANAGER REVIEW

Loomis Sayles Bond Fund

Daniel Fuss, CFA, CIC

Manager since May 1991

LOGO

Matthew Eagan, CFA

Associate Manager since February 2007

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Kathleen Gaffney, CFA

Manager since October 1997

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Elaine Stokes

Associate Manager since February 2007

PORTFOLIO REVIEW

The Fund underperformed its Benchmark, the Lehman US Government/Credit Index, for the fiscal year ended September 30, 2008, primarily due to the unfolding credit crisis, which triggered systemic financial sector weakness, ongoing spread widening among investment grade and high yield credits, and a stronger US dollar.

A crisis of confidence engulfed the financial markets with the collapse of Bear Stearns, the government conservatorship of Fannie Mae and Freddie Mac, the bankruptcy of Lehman Brothers, the insurer AIG’s ceding control to the government in exchange for an $85 billion loan, and the seizure of Washington Mutual. These events severely and directly affected Fund performance. Investment grade financials were also indirectly impacted in this environment.

Investors fled risky assets, and US Treasurys outperformed all other sectors, as widespread risk aversion drained corporate markets of liquidity and risk capacity, driving investors to seek high quality assets.

As banks nursed capital, businesses had increasing difficulty borrowing, and issuers facing impaired access to capital generally were negative performers, including those in communications, technology and consumer-sensitive industries. Secular global growth and the boom in commodity prices early in the fiscal year helped support the currencies of Malaysia, Mexico and Thailand. However, an uncertain and dimming global growth outlook in the third quarter of 2008 sent most major currencies lower versus the US dollar near the end of the fiscal year, as risk-averse investors fled to the relative safety of US Treasurys. Exposure to the Icelandic krona, British pound and the euro, in particular, detracted from results.

OUTLOOK

With tight credit and slowing economic growth, we are taking a hard look at opportunities. We see potential value in stable industrials, such as telecommunications and cable, but we are less enthusiastic about “deep cyclicals,” firms that are heavily dependent on the economy, and anything levered to the consumer.

We believe specific high yield credits and industries are likely to experience higher default rates, which would put further downward pressure on valuations. However, as measured by the Lehman High Yield Index, price declines had driven yields up over 13%, on average, as of September 30, 2008. Such a generous income may help investors absorb default losses (up to a point) while waiting for prices to recover.

FUND FACTS

Symbol | Institutional: LSBDX;

Retail: LSBRX; Admin: LBFAX

Objective | High total investment return through a combination of current income and capital appreciation

Strategy | Invests primarily in investment-grade fixed-income securities, although it may invest up to 35% of assets in lower rated fixed-income securities and up to 20% of its assets in preferred stocks. The Fund may invest any portion of its assets in Canadian securities and up to 20% of assets in other foreign securities, including emerging markets securities.

Fund Inception Date | 5/16/91

Class Inception Date Institutional: 5/16/91; Retail: 12/31/96; Admin: 1/2/98

Total Net Assets | $14,690.7 million

We have a cautious view on sovereigns because we believe the global credit crunch may lead to slower growth and lower commodity prices. Yields in Europe may fall as the economy slows, boosting bond returns, but we think currency-adjusted returns are likely to remain weak.

Experience with past market cycles suggests to us that, once confidence and optimism are restored, markets may turn up quickly as investors realize good companies are attractively priced. We are working hard to ensure the Fund is in a prime position to capture this upside potential.

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008


1 Year		5 Years		10 Years		Since Fund Inception^(a)
Loomis Sayles Bond: Institutional
-13.14	%	5.14	%	7.62	%	9.63	%
Loomis Sayles Bond: Retail^(c)
-13.44		4.86		7.34		9.35
Loomis Sayles Bond: Admin^(c)
-13.69		4.58		7.06		8.87
Lehman US Government/Credit Index^{^(d)}
2.41		3.34		5.00		6.70
Lipper BBB-Rated Funds Index^(d)
-6.31		2.27		4.10		6.15


Gross Expense Ratio (before reductions and reimbursements)*
Institutional: 0.67	%	Retail: 0.97	%	Admin: 1.24	%
Net Expense Ratio (after reductions and reimbursements)*
Institutional: 0.67	%	Retail: 0.95	%	Admin: 1.20	%

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE^(e)

Inception to September 30, 2008^(b)

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Data quoted reflects past performance and cannot guarantee future results. Average annual total returns assume reinvestment of dividends and capital gains distributions. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. For performance current to the most recent month-end, please visit the Loomis Sayles website. Current performance may be higher or lower than quoted.

Returns do not reflect the taxes that a shareholder would pay on Fund distributions or the redemption of shares. Periods of less than one year are not annualized. Performance data reflects certain fee reductions and reimbursements, if any, without which performance would be lower.

(a) Inception dates of the Institutional, Retail and Admin Classes of shares are May 16, 1991, December 31, 1996 and January 2, 1998, respectively. (b) The mountain chart is based on the initial minimum investment of $100,000 for the Institutional Class. (c) Performance shown for periods prior to the inception date of the Retail Class and the Admin Class represents the performance of the Institutional Class during the periods shown, adjusted to reflect the current levels of 12b-1 fees payable by the respective classes of shares. (d) See page 15 for a description of the indices. Index performance data is not available coincident with the Fund’s inception date; the beginning value of the index is the value as of the month end closest to the Fund’s inception date. (e) Cumulative performance is shown for the Institutional Class of shares. Performance of the Retail and Admin Classes would be lower, due to higher fees.

WHAT YOU SHOULD KNOW

The Fund can invest a significant percentage of assets in debt securities that are rated below investment grade and the value of fund shares can be adversely affected by changes in economic conditions or other circumstances. Lower rated debt securities have speculative characteristics and may be subject to greater price volatility than higher rated investments. In addition, the secondary market for these securities may lack liquidity. Fund shares should be viewed as a long-term investment. Securities issued by US government agencies are not insured by and may not be guaranteed by the US government. The Fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The Fund is subject to currency risk, which is the risk that fluctuations in exchange rates between the US dollar and foreign currencies may cause the value of a Fund’s investments to decline. Accordingly, the purchase of fund shares should be viewed as a long-term investment.

FUND AND MANAGER REVIEW

Loomis Sayles Fixed Income Fund

Daniel Fuss, CFA, CIC

Manager since January 1995

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Matthew Eagan, CFA

Associate Manager since
February 2007

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Kathleen Gaffney, CFA

Associate Manager since February 2007

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Elaine Stokes

Associate Manager since February 2007

PORTFOLIO REVIEW

A crisis of confidence engulfed the financial markets with the collapse of Bear Stearns, the government conservatorship of Fannie Mae and Freddie Mac, the bankruptcy of Lehman Brothers, insurer AIG’s ceding control to the government in exchange for an $85 billion loan, and the seizure of Washington Mutual. These events severely and directly affected Fund performance. Investment grade financials were also indirectly impacted in this environment.

Investors fled risky assets, and US Treasurys outperformed all other sectors. Agency mortgage pass-through securities also acted as a safe haven and were among the few shelters from the deteriorating credit markets. The government’s conservatorship of Fannie Mae and Freddie Mac made the guarantee on these securities explicit.

As banks nursed capital, businesses had difficulty borrowing. Issuers facing impaired access to capital were negative performers, including those in communications, technology and consumer-sensitive industries. Secular global growth and the boom in commodity prices early in the fiscal year helped the currencies of Mexico, Malaysia and Brazil. However, an uncertain and dimming global growth outlook in the third quarter of 2008 sent most major currencies lower versus the US dollar as risk-averse investors fled to the relative safety of US Treasurys. In particular, exposure to the Singapore dollar, Icelandic krona and the euro detracted from results.

OUTLOOK

With tight credit and slowing economic growth, we are taking a hard look at opportunities. We see potential value in stable industrials, such as telecommunications and cable, but we are less enthusiastic about “deep cyclicals,” firms heavily dependent on the economy, and anything levered to the consumer.

FUND FACTS

Symbol | LSFIX

Objective | High total investment return through a combination of current income and capital appreciation

Strategy | Invests primarily in fixed-income securities, may invest up to 35% of its assets in lower-rated fixed-income securities and up to 20% of its assets in preferred stocks. The Fund may invest any portion of its assets in Canadian securities and up to 20% of assets in other foreign securities, including emerging markets securities.

Fund Inception Date | 1/17/95

Fund Registration Date | 3/7/97

Total Net Assets | $624.5 million

Our experience with past market cycles suggests that, once confidence and optimism are restored, markets can recover quickly as investors realize good companies are attractively priced. We are working hard to ensure the Fund is in a prime position to capture this upside potential.

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008


1 Year		5 Years		10 Years		Since Registration^(a)		Since Fund Inception^(a)
Loomis Sayles Fixed Income: Institutional
-9.42	%	6.15	%	7.98	%	7.81	%	9.35	%
Lehman US Government/Credit Index^(b)
2.41		3.34		5.00		5.93		6.46
Lipper BBB-Rated Funds Index^(b)
-6.31		2.27		4.10		4.78		5.71


Gross Expense Ratio (before reductions and reimbursements)*
Institutional: 0.60	%
Net Expense Ratio (after reductions and reimbursements)*
Institutional: 0.60	%

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Registration to September 30, 2008^(c)

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Inception to September 30, 2008^(c)

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(a) Shares of the Fund were registered for offer and sale under the Securities Act of 1933 on March 7, 1997. In accordance with regulations, performance information is provided for the period beginning on March 7, 1997 (“Registration”). Performance from inception is also provided for the convenience of our long-term shareholders. Since index performance data is not available coincident with the Fund’s inception and registration dates, comparative performance is presented from the month end closest to the Fund’s inception and registration dates. (b) See page 15 for a description of the indices. (c) The mountain chart is based on the Fund’s minimum initial investment of $3,000,000.

WHAT YOU SHOULD KNOW

FUND AND MANAGER REVIEW

Loomis Sayles Global Bond Fund

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Ken Buntrock, CFA, CIC

Manager since September 2000

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David Rolley, CFA

Manager since September 2000

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Lynda Schweitzer, CFA

Manager since February 2007

PORTFOLIO REVIEW

The Fund underperformed its Benchmark, the Lehman Global Aggregate Bond Index, for the fiscal year ended September 30, 2008, primarily due to an overweight in the corporate bond sector.

We gradually added to the Fund’s investment grade and high yield corporate bond holdings by lowering our exposure to high-quality government, quasi-government and securitized issuers. This hurt relative performance, as the credit markets significantly underperformed government bonds in the United States, United Kingdom and Europe. The Fund benefited from a brief rally following the rescue of Bear Stearns and the Federal Reserve’s actions to support liquidity. Nevertheless, the ongoing credit crisis and drama surrounding the global banking sector pushed credit spreads to their widest levels of the fiscal year in September. The Fund’s exposure to Freddie Mac and Fannie Mae preferred securities, as well as to Lehman Brothers and AIG, largely detracted from performance during the period. The worst-performing security was Lehman Brothers, which lost virtually all of its value after filing for bankruptcy in September.

Our country allocations had a slightly negative impact on performance. The Fund’s overweight in the Malaysian and Singapore bond markets detracted, while our underweight in euro-denominated issues aided relative performance. The Fund’s overall currency strategy generated excess returns for the period. Most notably, our underweight to the South Korean won and Canadian dollar performed well, as both currencies depreciated against the greenback. Our overweight positions in the Polish zloty, Uruguay peso, Singapore dollar and Malaysian ringgit also enhanced returns. The Fund’s overweight in the Icelandic krona detracted, as that currency weakened by more than 40% against the US dollar.

Our duration/yield curve positioning had a slightly positive influence on relative performance. Specifically, our longer-than-Benchmark duration in Europe enhanced returns, as deteriorating market conditions led to lower bond yields.

OUTLOOK

Credit spreads have widened to startling levels, and September was among the worst months of performance for investment grade and high yield debt. Credit remains extremely cheap, and greater risk aversion than we witnessed during the final three weeks of September seems difficult.

We are forecasting a global recession and a cut in the federal funds rate, possibly to 1.0% by year end. We believe the US dollar and euro markets will probably continue to trade within a defined range, as both regions struggle with

FUND FACTS

Symbol | Institutional: LSGBX;

Retail: LSGLX

Objective | High total investment return through a combination of high current income and capital appreciation

Strategy | Invests primarily in investment-grade fixed-income securities worldwide, although it may invest up to 20% of assets in lower-rated fixed-income securities.

Fund Inception Date | 5/10/91

Class Inception Date Institutional: 5/10/91; Retail: 12/31/96

Total Net Assets | $2,230.6 million

similar problems. We may reduce the Fund’s duration at some point because, if the needed bank capital support does not come from fiscal authorities, it will have to come from easy monetary policy for an extended period.

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008


1 Year		5 Years		10 Years		Since Inception^(a)
Loomis Sayles Global Bond: Institutional
-4.14	%	4.00	%	7.22	%	7.72	%
Loomis Sayles Global Bond: Retail^(b)
-4.45		3.72		6.94		7.53
Lehman Global Aggregate Bond Index^(c)
2.80		4.76		4.91		6.81
Lipper Global Income Funds Index^(c)
-3.07		3.73		4.60		5.76

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE^(d)

Inception to September 30, 2008^(e)

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Data quoted reflects past performance and cannot guarantee future results. Average annual total returns assume reinvestment of dividends and capital gains distributions. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. For performance current to the most recent month-end, please visit the Loomis Sayles website. Current performance may be higher or lower than quoted.

(a) Since index performance data is not available coincident with the Fund’s inception date, the beginning value of the index is the value as of the month end closest to the Fund’s inception date. (b) Performance shown for periods prior to the inception date of the Retail Class (12/31/96) represents the performance of the Institutional Class during the periods shown, adjusted to reflect the current levels of 12b-1 fees payable by the respective Classes of shares. (c) See page 15 for a description of the indices. (d) Cumulative performance is shown for the Institutional Class. Performance of the Retail Class would be lower due to higher fees. (e) The mountain chart is based on the Institutional Class minimum initial investment of $100,000.

WHAT YOU SHOULD KNOW

FUND AND MANAGER REVIEW

Loomis Sayles Inflation Protected Securities Fund

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John Hyll

Manager since January 2003

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Cliff Rowe, CFA

Manager since January 2003

PORTFOLIO REVIEW

The Fund underperformed its Benchmark, the Lehman US Treasury Inflation Protected Securities Index, for the fiscal year ended September 30, 2008, primarily due to its out-of-Benchmark exposure to credit securities. In addition, the Fund held Fannie Mae and Freddie Mac preferred stock, and when the US government took conservatorship of these government-sponsored entities, it only guaranteed their senior and subordinated debt, not their preferred shares.

The period’s historic flight-to-quality led to outperformance for nominal US Treasurys and underperformance for all other sectors, including Treasury inflation-protected securities (TIPS). The Fund’s TIPS position (78% of the Fund) performed relatively well, especially in the short to intermediate maturity range. This segment benefited from a steepening of the yield curve prompted by the Federal Reserve’s rate cuts, which pushed the federal funds rate target to 2.00%, down from 4.75% at the beginning of the period. The Fund’s longer duration relative to the Benchmark was a neutral strategy at best, as most of the decline in yields occurred in the shorter end of the yield curve, and the Fund’s more laddered maturity structure, did not help offset the impact of the flight to quality. The Fund’s non-dollar exposure to Singapore and Mexico helped, as did its energy holdings, which contributed positively to performance early in the fiscal year.

During the period, the real yield of 10-year TIPS remained unchanged at 2.27%. Yields on 30-year TIPS rose to 2.58% on September 30, 2008, from 2.20% a year earlier, and yields on five-year TIPS fell to 1.94% from 2.16%. These relatively small yield changes do not reflect the volatility witnessed during the period. Yields on 10-year TIPS, for example, reached a low of 0.91% on March 10, 2008, as breakevens (the difference between yields on 10-year nominal US Treasurys and TIPS, which represents the market’s long-term inflation forecast) trended upward on soaring oil prices.

In the third quarter of 2008, TIPS posted their worst performance relative to nominal US Treasurys, and breakevens narrowed significantly (from 2.53% on June 30 to 1.56% on September 30). Credit also underperformed during the period, reflecting the ongoing difficulties in the housing market and how they may negatively affect employment, lending, corporate earnings and the overall health of the economy.

OUTLOOK

Due to poor performance in the TIPS sector, the market is certainly not pricing in fears of inflation. However, one might view the TIPS sector as fairly attractive, given that the 10-year TIPS breakeven was at 1.59% on September 30, 2008. This is the most attractive level for the year and it suggests that inflation expectations might be too low given all the monetary easing and liquidity infusion into the markets by the Federal Reserve in an effort to help jump start the financial sector. Low inflation expectations of 1.59% may be too optimistic given our anticipation of a recovery beginning sometime in mid-2009 and the possible recovery in oil prices that may accompany improving economic conditions within the next year. Pricing in the TIPS market marks one of the best valuations we have seen in a long time.

FUND FACTS

Symbol | LSGSX

Objective | High total investment return through a combination of current income and capital appreciation

Strategy | Invests primarily in inflation-protected securities with emphasis on debt securities issued by the US Treasury

Fund Inception Date | 5/20/91

Total Net Assets | $16.0 million

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008


1 Year		5 Years		10 Years		Since Inception^(a)
Loomis Sayles Inflation Protected Securities: Institutional
2.64	%	2.92	%	4.87	%	7.24	%
Lehman US Treasury Inflation Protected Securities Index^(b)
6.19		5.15		7.12		N/A
Lipper Treasury Inflation Protected Securities Index^{^(b)}
4.50		4.63		N/A		N/A


Gross Expense Ratio (before reductions and reimbursements)*
Institutional: 1.28	%
Net Expense Ratio (after reductions and reimbursements)*
Institutional: 0.40	%

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Inception to September 30, 2008^(c)

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For illustrative purposes, the chart above reflects the growth of a hypothetical investment of $100,000 in the Fund, since its inception. The chart above also reflects the growth of a hypothetical investment in the former primary benchmark of the Fund, the Lehman US Government Bond Index (the “Former Benchmark”), compared to the performance of the Fund from the Fund’s inception date through December 31, 2004. On December 15, 2004, in connection with a change of the Fund’s investment objective, the Fund changed its primary benchmark to the Lehman US Treasury Inflation Protected Securities Index (the “New Benchmark”). Since index performance data is not available coincident with the date of the Fund’s strategy change, comparative data for the Fund’s New Benchmark begins on December 31, 2004. The chart above reflects the growth of a hypothetical investment in the New Benchmark, compared to the performance of the Fund, from December 31, 2004, through September 30, 2008. The chart above also compares the performance of the Fund to the Lipper Treasury Inflation Protected Securities Funds Index from December 31, 2004 through September 30, 2008. The performance of the New Benchmark and of the Lipper Treasury Inflation Protected Securities Funds Index was linked to the performance of the Former Benchmark as of December 31, 2004.

(a) Since index performance data is not available coincident with the Fund’s inception date, comparative performance is presented from the month end closest to the Fund’s inception date. (b) See page 15 for a description of the indices. Return data is not available for the Lehman US Treasury Inflation Protected Securities Index prior to March 1, 1997. Similarly, return data is not available for the Lipper Treasury Inflation Protected Securities Funds Index prior to July 1, 2003. (c) The mountain chart is based on the Fund’s minimum initial investment of $100,000.

WHAT YOU SHOULD KNOW

Securities issued by US government agencies are not insured by and may not be guaranteed by the US government. The Fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The Fund is subject to currency risk, which is the risk that fluctuations in exchange rates between the US dollar and foreign currencies may cause the value of a Fund’s investments to decline. Accordingly, the purchase of fund shares should be viewed as a long-term investment.

Effective December 15, 2004, the Fund’s name and investment strategy changed. The Fund’s strategy emphasizes inflation-protected debt securities issued by the US Treasury (TIPS). The principal value of the types of securities are periodically adjusted according to the rate of inflation and repayment of the original bonds is guaranteed by the US government.

FUND AND MANAGER REVIEW

Loomis Sayles Institutional High Income Fund

Daniel Fuss, CFA, CIC

Manager since June 1996

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Matthew Eagan, CFA

Associate Manager since
February 2007

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Kathleen Gaffney, CFA

Associate Manager since February 2007

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Elaine Stokes

Associate Manager since February 2007

PORTFOLIO REVIEW

The Fund underperformed its Benchmark, the Lehman High Yield Index, for the fiscal year ended September 30, 2008, primarily due to poor price performance among investment grade and high yield bonds. On a relative basis, below investment grade industrials detracted the most from performance. This sector included many poorly performing “busted Leveraged Buy Out” names. These are highly leveraged companies—many in the technology and communication industries—now facing a grim outlook in the current credit environment.

Widespread risk aversion accelerated during the third quarter of 2008, draining liquidity from the credit markets as sellers vastly out-numbered buyers. The resulting crisis of confidence largely defined the Fund’s performance for the period. As spreads widened and liquidity dried up, frightened investors sold across the quality spectrum and sought safety in US Treasury securities. Our US Treasury holdings benefited, but performance among other sectors suffered.

In absolute terms, financial names generated the biggest losses for the period, particularly in the investment grade arena. Uncertainty regarding the magnitude of the financial crisis and the government rescue plan grew in the final weeks of September 2008, punishing financial credits across the board. In particular, preferred and equity holdings, composed mainly of government-sponsored and financial sector securities, hurt overall Fund performance. Auto and gaming credits also took a beating, as consumers pulled back.

Non-US-dollar investments, positive performers in earlier quarters, posted poor results for the trailing year, primarily due to the strengthening US dollar.

Our underweight allocation to below-investment grade financials contributed favorably to relative performance, despite posting a negative absolute return. Select convertible bonds also contributed positively to overall performance, and our small allocation to emerging market debt produced a meager gain.

OUTLOOK

With tight credit and slowing economic growth, we are taking a hard look at opportunities. We see potential value in stable industrials, such as telecommunications and cable, but we are less enthusiastic about “deep cyclicals,” firms heavily dependent on the economy, and anything levered to the consumer.

FUND FACTS

Symbol | LSHIX

Objective | High total investment return through a combination of current income and capital appreciation

Strategy | Invests in primarily lower-rated fixed-income securities and other securities that are expected to produce a relatively high level of income, (including income-producing preferred and common stocks).

The Fund may invest any portion of its assets in Canadian securities and up to 50% of assets in other foreign securities, including emerging markets securities.

Fund Inception Date | 6/5/96

Fund Registration Date | 3/7/97

Total Net Assets | $214.2 million

We believe specific high yield credits and industries are likely to experience higher defaults, which will put further downward pressure on valuations. However, as measured by the Lehman High Yield Index, price declines had driven yields up over 13%, on average, as of September 30, 2008. Such a generous income may help investors absorb default losses (up to a point) while waiting for prices to recover.

Experience with past market cycles suggests that once confidence and optimism are restored, markets can recover quickly as investors realize good companies are attractively priced. We are working hard to ensure the Fund is in a prime position to capture this upside potential.

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008


1 Year		5 Years		10 Years		Since Registration^(a)		Since Inception^(a)
Loomis Sayles Institutional High Income: Institutional
-11.70	%	7.81	%	8.63	%	6.66	%	6.86	%
Lehman High Yield Index^(b)
-11.24		4.38		4.42		4.63		5.26
Lipper High Current Yield Funds Index^(b)
-11.45		3.96		3.16		3.30		4.00


Gross Expense Ratio (before reductions and reimbursements)*
Institutional: 0.76	%
Net Expense Ratio (after reductions and reimbursements)*
Institutional: 0.76	%

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Registration to September 30, 2008^(c)

Inception to September 30, 2008^(c)

WHAT YOU SHOULD KNOW

FUND AND MANAGER REVIEW

Loomis Sayles Intermediate Duration Fixed Income Fund

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Neil Burke

Manager since December 2005

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Cliff Rowe, CFA

Manager since December 2005

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Richard Raczkowski

Manager since December 2005

PORTFOLIO REVIEW

The Fund underperformed its Benchmark, the Lehman US Government/Credit Intermediate Index, for the fiscal year ended September 30, 2008, primarily due to security selection and sector allocation. The events of September dominated returns and ultimately dictated sector and industry performance throughout the year.

Battered by the historic events of September, the financial sector suffered the worst absolute returns for the period. The Fund’s holdings among brokerage and finance companies were impacted the most. In particular, Lehman Brothers, whose bankruptcy filing unleashed widespread risk-aversion and uncertainty, dragged down results. Exceptional volatility spurred a flight to quality that led to impaired access to capital for many businesses, including communications and consumer-sensitive firms. This also hampered Fund performance.

In the flight-to-quality environment characteristic of much of the year, US Treasurys and agencies provided the best relative performance. Although the Fund’s allocation to US Treasurys fared best on an absolute basis, its underweight to US Treasurys and agencies relative to the Benchmark detracted from results.

We shifted the Fund’s duration to a defensive posture, extending to 3.96 years at the end of September 2008, compared to the Benchmark’s duration of 3.69 years. This tactical positioning, concentrated largely in long-term US Treasurys and other bonds, helped overcome some of the effects of the steepening yield curve.

The Fund’s performance also benefited from an out-of-Benchmark allocation to the Singapore dollar. Structured products, particularly long-term mortgage-backed securities (MBS), fared well as investors preferred high-quality issues. MBS enjoyed greater liquidity than their counterparts in the credit market.

OUTLOOK

With tight credit and slowing economic growth, we are taking a hard look at opportunities. We see potential value in stable industrials, such as telecommunications and cable, but we are less enthusiastic about “deep cyclicals,” firms heavily dependent on the economy, and anything levered to the consumer.

We have a cautious view on sovereigns because we believe the global credit crunch may lead to slower growth and lower commodity prices. Yields in Europe may fall as the economy slows, boosting bond returns, but we believe currency-adjusted returns are likely to be weak.

Experience with past market cycles suggests that, once confidence and optimism are restored, markets can recover quickly as investors realize good companies are attractively priced. We are working hard to ensure the Fund is in a prime position to capture this upside potential.

FUND FACTS

Symbol | LSDIX

Objective | Above-average total return through a combination of current income and capital appreciation

Strategy | Invests only in investment-grade fixed-income securities. The Fund’s weighted average duration generally is two to five years

Fund Inception Date | 1/28/98

Total Net Assets | $32.7 million

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008


1 Year		5 Years		10 Years		Since Inception^(a)
Loomis Sayles Intermediate Duration Fixed Income Fund: Institutional
-0.46	%	2.62	%	4.77	%	4.65	%
Lehman US Gov’t/Credit Intermediate Index^(b)
3.13		3.25		4.96		5.28
Lipper Intermediate Investment Grade Debt Funds Index^(b)
-2.43		2.46		4.28		4.61

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Inception to September 30, 2008^(c)

Data quoted reflects past performance and cannot guarantee future results. Average annual total returns assume reinvestment of dividends and capital gains distributions. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. For performance current to the most recent month-end, please visit the Loomis Sayles website. Current performance may be higher or lower than quoted.

(a) Since index performance data is not available coincident with the Fund’s inception date, comparative performance is presented from the month end closest to the Fund’s inception date. (b) See page 15 for a description of the indices. (c) The mountain chart is based on the Fund’s minimum initial investment of $2,000,000.

WHAT YOU SHOULD KNOW

If the credit rating of a security held by the Fund falls below investment grade, the Fund may continue to hold it if Loomis Sayles believes the investment is appropriate. The secondary market for securities that fall below investment grade may lack liquidity and such securities may incur greater risk of default, which may adversely affect the value of the Fund. Foreign countries may have different accounting standards than those of the US. Securities issued by US government agencies are not insured by and may not be guaranteed by the US government. The Fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The Fund is subject to currency risk, which is the risk that fluctuations in exchange rates between the US dollar and foreign currencies may cause the value of a Fund’s investments to decline. The Fund can invest a significant percentage of assets in debt securities that are rated below investment grade and the value of fund shares can be adversely affected by changes in economic conditions or other circumstances. Lower rated debt securities have speculative characteristics and may be subject to greater price volatility than higher rated investments. In addition, the secondary market for these securities may lack liquidity. Accordingly, the purchase of fund shares should be viewed as a long-term investment.

FUND AND MANAGER REVIEW

Loomis Sayles Investment Grade Fixed Income Fund

LOGO

Daniel Fuss, CFA, CIC

Manager since July 1994

LOGO

Steven Kaseta, CFA

Manager since February 2002

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Kathleen Gaffney, CFA

Associate Manager since September 2006

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Matthew Eagan, CFA

Associate Manager since September 2006

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Elaine Stokes

Associate Manager since September 2006

PORTFOLIO REVIEW

The Fund underperformed its Benchmark, the Lehman US Government/Credit Index, for the fiscal year ended September 30, 2008, primarily due to widespread risk aversion, systemic weakness in the financial sector, a stronger US dollar and ongoing credit-spread widening among investment grade and high yield bonds.

The financial sector remained under significant downward pressure throughout the year, severely affecting investment grade and high yield financials. The massive flight-to-quality, along with concerns about the capital funding of banks and brokers, several high-profile bankruptcies, and the bailout of the government-sponsored entities (GSE), caused Treasury yields to plunge and the yield curve to steepen. As recession fears became more entrenched, our defensive duration position helped the Fund’s performance. Although the Fund was overweight in Treasurys, in terms of duration, it was significantly underweight in terms of market value.

Overall, our allocations to investment grade and high yield securities significantly hindered performance. Telecommunication holdings lagged across the board, and the Fund’s high yield auto and auto-related holdings detracted from performance. Our investments in preferred securities, primarily GSE, also hurt the Fund’s overall performance. However, on a positive note, the Fund’s investment grade financial holdings contributed positively due to a modest underweight and sound security selection.

Currencies of commodity-exporting countries like Australia, Canada and New Zealand, weakened late in the period, wiping out gains achieved earlier, when commodity prices reached record highs. An uncertain outlook for economic growth sent most currencies lower versus the US dollar.

OUTLOOK

With tight credit and slowing economic growth, we are taking a hard look at opportunities. We see potential value in stable industrials, such as telecommunications and cable, and we are less enthusiastic about “deep cyclicals,” firms heavily dependent on the economy, and anything levered to the consumer.

FUND FACTS

Symbol | LSIGX

Objective | Above-average total investment return through a combination of current income and capital appreciation

Strategy | Invests in primarily investment-grade fixed-income securities, although it may invest up to 10% of its assets in lower rated fixed-income securities and up to 10% of its assets in preferred stocks. The Fund may invest any portion of its assets in securities of Canadian issuers and up to 20% of assets in securities of other foreign issuers, including emerging markets.

Fund Inception Date | 7/1/94

Fund Registration Date | 3/7/97

Total Net Assets | $277.9 million

Such a generous income may help investors absorb default losses (up to a point) while waiting for prices to recover.

We have a cautious view on sovereigns because we expect the global credit crunch may lead to slower growth and lower commodity prices. As the economy slows, yields in Europe may fall, boosting bond returns, but we believe currency-adjusted returns are likely to be weak.

Experience with past market cycles suggests that, once confidence and optimism are restored, markets can recover quickly as investors realize good companies are attractively priced. We’re working hard to ensure the Fund is in a prime position to capture this upside potential.

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008


1 Year		5 Years		10 Years		Since Registration^(a)		Since Inception^(a)
Loomis Sayles Investment Grade Fixed Income: Institutional
-6.00	%	5.53	%	8.20	%	7.90	%	9.20	%
Lehman US Government/Credit Index^(b)
2.41		3.34		5.00		5.93		6.40
Lipper BBB-Rated Funds Index^(b)
-6.31		2.27		4.10		4.78		5.63

* As stated in the most recent prospectus

CUMULATIVE PERFORMANCE

Registration to September 30, 2008^(c)

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Inception to September 30, 2008^(c)

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WHAT YOU SHOULD KNOW

The Fund can invest a significant percentage of assets in debt securities that are rated below investment grade and the value of fund shares can be adversely affected by changes in economic conditions or other circumstances. Lower rated debt securities have speculative characteristics and may be subject to greater price volatility than higher rated investments. In addition, the secondary market for these securities may lack liquidity. Fund shares should be viewed as a long-term investment. Securities issued by US government agencies are not insured by and may not be guaranteed by the US government. The Fund can invest a significant percentage of assets in foreign securities and the value of the fund shares can be adversely affected by changes in currency exchange rates, political, and economic developments. In emerging markets these risks can be significant. The Fund is subject to currency risk, which is the risk that fluctuations in exchange rates between the US dollar and foreign currencies may cause the value of a Fund’s investments to decline. The Fund can invest a significant percentage of assets in debt securities that are rated below investment grade and the value of fund shares can be adversely affected by changes in economic conditions or other circumstances. Lower rated debt securities have speculative characteristics and may be subject to greater price volatility than higher rated investments. In addition, the secondary market for these securities may lack liquidity. Accordingly, the purchase of fund shares should be viewed as a long-term investment.

ADDITIONAL INFORMATION

Index Definitions

Lipper BBB-Rated Funds Index is an equally weighted index of typically the 30 largest mutual funds within the corporate debt funds BBB-rated investment objective.

Lipper Global Income Funds Index is an equally weighted index of typically the 30 largest mutual funds within the global income funds investment objective.

Lipper High Current Yield Funds Index is an equally weighted unmanaged index of typically the 30 largest mutual funds within the high current yield funds investment objective.

Lipper Intermediate Investment Grade Debt Funds Index is an equally weighted unmanaged index of the 30 largest mutual funds within the intermediate investment grade debt funds investment objective.

Lipper Treasury Inflation Protected Securities Funds Index is an equally weighted index of typically the 30 largest mutual funds within the treasury inflation protected securities funds investment objective.

Source: Lipper, Inc.

Lehman US Government/Credit Index includes treasuries (public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government) as well as other publicly issued investment grade corporate and foreign debentures that meet specified maturity, liquidity, and quality requirements.

Lehman US Government/Credit Intermediate Index includes securities which have a remaining maturity of 1-10 years and includes Treasuries (public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government), as well as other publicly issued investment grade corporate and non-corporate debentures that meet specified maturity, liquidity, and quality requirements.

Lehman Global Aggregate Bond Index covers the most liquid portion of the global investment grade fixed-rate bond market, including government, credit and collateralized securities.

Lehman High Yield Index covers the universe of fixed rate, non-investment grade debt. Pay-in-kind bonds, Eurobonds, and debt issues from countries designated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds (SEC registered) of issuers in non-emerging market countries are included. Original issue zeroes, step-up coupon structures, and 144As are also included.

Lehman US Treasury Inflation Protected Securities Index measures the performance of the inflation protected securities issued by the U.S. Treasury.

Proxy Voting Information

Quarterly Portfolio Schedules

UNDERSTANDING YOUR FUND’S EXPENSES

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

The first line in the table for each Class of Fund shares shows the actual amount of Fund expenses you would have paid on a $1,000 investment in the Fund from April 1, 2008 through September 30, 2008. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual Fund returns and expenses. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example $8,600 account value divided by $1,000 = 8.6) and multiply the result by the number in the Expenses Paid During Period column as shown below for your Class.

The second line in the table 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 and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Loomis Sayles Bond Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$873.80	$2.95
Hypothetical (5% return before expenses)	$1,000.00	$1,021.85	$3.18

Retail Class
Actual	$1,000.00	$872.10	$4.35
Hypothetical (5% return before expenses)	$1,000.00	$1,020.35	$4.70

Admin Class
Actual	$1,000.00	$870.70	$5.61
Hypothetical (5% return before expenses)	$1,000.00	$1,019.00	$6.06
* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.63%, 0.93%, and 1.20%, for Institutional, Retail and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

Loomis Sayles Fixed Income Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$904.70	$2.76
Hypothetical (5% return before expenses)	$1,000.00	$1,022.10	$2.93
* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.58%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

Loomis Sayles Global Bond Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$897.10	$3.04
Hypothetical (5% return before expenses)	$1,000.00	$1,021.80	$3.23

Retail Class
Actual	$1,000.00	$895.90	$4.74
Hypothetical (5% return before expenses)	$1,000.00	$1,020.00	$5.05
* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.64% and 1.00% for the Institutional and Retail Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

Loomis Sayles Inflation Protected Securities Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$944.70	$1.94
Hypothetical (5% return before expenses)	$1,000.00	$1,023.00	$2.02
* Expenses are equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.40%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

Loomis Sayles Institutional High Income Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 - 9/30/2008
Actual	$1,000.00	$905.10	$3.43
Hypothetical (5% return before expenses)	$1,000.00	$1,021.40	$3.64
*Expensesare equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.72%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

Loomis Sayles Intermediate Duration Fixed Income Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 - 9/30/2008
Actual	$1,000.00	$964.00	$1.96
Hypothetical (5% return before expenses)	$1,000.00	$1,023.00	$2.02
*Expensesare equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.40%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

Loomis Sayles Investment Grade Fixed Income Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 - 9/30/2008
Actual	$1,000.00	$916.00	$2.35
Hypothetical (5% return before expenses)	$1,000.00	$1,022.55	$2.48
*Expensesare equal to the Fund’s annualized expense ratio (after fee reduction/reimbursement): 0.49%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

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

In connection with these meetings, the Trustees receive materials that the Funds’ investment adviser believes to be reasonably necessary for the Trustees to evaluate the Agreements. These materials generally include, among other items, (i) information on the investment performance of the Funds and the performance of peer groups of funds and the Funds’ performance benchmarks, (ii) information on the Funds’ advisory fees and other expenses, including information comparing the Funds’ expenses to those of peer groups of funds and information about any applicable expense caps and fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Funds’ adviser (the “Adviser”), and (v) information obtained through the completion of a questionnaire by the Adviser (the Trustees are consulted as to the information requested through that questionnaire). The Board of Trustees, including the Independent Trustees, also consider other matters such as (i) the Adviser’s financial results and financial condition, (ii) each Fund’s investment objective and strategies and the size, education and experience of the Adviser’s investment staffs and their use of technology, external research and trading cost measurement tools, (iii) arrangements in respect of the distribution of the Funds’ shares and the related costs, (iv) the procedures employed to determine the value of the Funds’ assets, (v) the allocation of the Funds’ brokerage, if any, including allocations to brokers affiliated with the Adviser and the use of “soft” commission dollars to pay Fund expenses and to pay for research and other similar services, (vi) the resources devoted to, and the record of compliance with, the Funds’ investment policies and restrictions, policies on personal securities transactions and other compliance policies, and (vii) 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 the annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board of Trustees that provide detailed information about each Fund’s 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 performance and fee differentials against each Fund’s peer group, 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 its peer group. The portfolio management team for each Fund makes periodic presentations to the Contract Review and Governance Committee and/or the full Board of Trustees, and Funds identified as presenting possible performance concerns may be subject to more frequent board presentations and reviews. In addition, each quarter the Trustees are provided with detailed statistical information about each Fund’s portfolio.

The Board of Trustees most recently approved the continuation of the Agreements at their meeting held in June 2008. The Agreements were continued for a one-year period for all Funds. In considering whether to approve the continuation of the Agreements, the Board of Trustees, including the Independent Trustees, did not identify any single factor as determinative. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included the following:

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, including recent or planned investments by the Adviser in additional personnel or other resources. They also took note of the competitive market for talented personnel, in particular, for personnel who have contributed to the generation of strong investment performance. They considered the need for the Adviser to offer competitive compensation in order to attract and retain capable personnel. In the case of Loomis Sayles Bond Fund, which had experienced substantial net cash inflows, the Trustees considered factors including (1) the additional efforts required to manage the Fund’s portfolio in such circumstances (including the need to identify additional portfolio securities for investment as the Fund’s assets grow), (2) the additional personnel and other resources required to manage the portfolio in such circumstances, (3) the possible effects of such cash inflows on the Fund’s ability to achieve attractive investment returns and (4) the benefits to the Fund of such net cash inflows (including lower expense ratios).

The Trustees considered not only the advisory services provided by the Adviser to the Funds, but also considered the administrative services provided by Natixis Advisors and its affiliates to the Funds.

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 which compared the performance of the Funds to the performance of peer groups of funds and the Funds’ respective performance benchmarks. In addition, the Trustees also reviewed data prepared by an independent third party which analyzed the performance of the Funds using a variety of performance metrics, including metrics which also measured the performance of the Funds on a risk adjusted basis.

With respect to each Fund, the Board concluded that the Fund’s performance or other relevant factors supported the renewal of the Agreement relating to that Fund. In the case of each Fund that had performance that lagged that of a relevant peer group for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Funds’ Agreements. These factors varied from Fund to Fund, but 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 Fund’s Adviser that were reasonable and consistent with the Funds’ investment objective and policies and (2) that reductions in the Funds’ expense levels resulting from decreased expenses and/or increased assets were not yet fully reflected in the Fund’s performance results.

The costs of the services to be provided and profits to be realized by the Adviser and its affiliates from their respective relationships with the Funds. The Trustees considered the fees charged to the Funds for advisory services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and also by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Adviser to comparable accounts. 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. In evaluating each Fund’s advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund. 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 Loomis Sayles Funds in this report have expense caps in place, and they considered the amounts waived or reimbursed by the Adviser under these caps. The Trustees noted that the Loomis Sayles Global Bond Fund’s total expense ratio was below the median of a peer group of funds even though the advisory fee was above the median.

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense waivers. The Trustees noted that two of the Loomis Sayles Funds in this report had breakpoints in their advisory fees and the remaining Funds were subject to expense caps. The Trustees also considered management’s representation that for certain Funds, the Funds’ Adviser did not benefit from economies of scale in providing services to the Funds (because of the investment style of the Fund, the small size of the Fund or for other reasons) or were capacity constrained with respect to the relevant investment strategy. For Loomis Sayles Bond Fund, the Trustees considered that the additional breakpoints implemented in December 2007 and

management’s representations that additional investments were being made to support the Fund’s investment team in response to the growth of assets in the Fund. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

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

•

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

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – 92.4% of Net Assets

NON-CONVERTIBLE BONDS – 87.7%

ABS Credit Card – 0.7%
Citibank Credit Card Issuance Trust, Series 2008-C6, Class C6, 6.300%, 6/20/2014		$	113,710,000	$	98,805,382
MBNA Credit Card Master Note Trust, Series 03A5, 4.150%, 4/19/2010	EUR		300,000		408,570

					99,213,952

Aerospace & Defense – 0.1%
Bombardier, Inc., 6.300%, 5/01/2014, 144A			1,590,000		1,478,700
Bombardier, Inc., 7.350%, 12/22/2026	CAD		6,785,000		5,662,295
Bombardier, Inc., 7.450%, 5/01/2034, 144A			13,464,000		12,521,520

					19,662,515

Airlines – 1.4%
American Airlines, Inc., Series 1999-1, 7.324%, 4/15/2011			1,255,000		1,192,250
American Airlines, Inc., Series 93A6, 8.040%, 9/16/2011			1,522,568		1,149,539
Continental Airlines, Inc., Series 1997-4B, 6.900%, 7/02/2018			4,609,946		3,837,780
Continental Airlines, Inc., Series 1998-1, Class B, 6.748%, 9/15/2018			7,335,827		5,868,662
Continental Airlines, Inc., Series 1999-1B, 6.795%, 2/02/2020			4,220,894		3,186,775
Continental Airlines, Inc., Series 1999-1C, 6.954%, 2/02/2011			3,810,053		3,562,399
Continental Airlines, Inc., Series 1999-2, Class B, 7.566%, 9/15/2021			4,429,169		3,587,627
Continental Airlines, Inc., Series 2000-2, Class B, 8.307%, 10/02/2019			7,124,614		5,664,068
Continental Airlines, Inc., Series 2001-1, Class B, 7.373%, 6/15/2017			3,754,805		2,816,104
Continental Airlines, Inc., Series 96-A, Class B, 6.940%, 4/15/2015			335,683		313,025
Continental Airlines, Inc., Series 971A, 7.461%, 10/01/2016			7,632,142		6,639,964
Continental Airlines, Inc., Series A, 5.983%, 4/19/2022			26,671,000		20,536,670
Continental Airlines, Inc., Series B, 6.903%, 4/19/2022			23,877,000		16,952,670
Delta Air Lines, Inc., Series 2007-1, Class A, 6.821%, 8/10/2022			2,337,340		1,823,125
Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024			5,753,706		3,912,520
Delta Air Lines, Inc., Series 2007-1, Class C, 8.954%, 8/10/2014			44,560,173		32,528,926
Northwest Airlines, Inc., Series 07-1, Class B, 8.028%, 11/01/2017			37,035,000		22,961,700
Qantas Airways Ltd., 5.125%, 6/20/2013, 144A			2,000,000		1,878,858
Qantas Airways Ltd., 6.050%, 4/15/2016, 144A			44,235,000		40,495,417
United Air Lines, Inc., 6.636%, 1/02/2024			26,136,569		19,341,061

					198,249,140


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Automotive – 1.7%
Cummins, Inc., 6.750%, 2/15/2027		$	2,547,000	$	2,283,355
Cummins, Inc., 7.125%, 3/01/2028			3,000,000		2,870,907
FCE Bank PLC, EMTN, 7.125%, 1/16/2012	EUR		9,800,000		9,243,617
FCE Bank PLC, EMTN, 7.125%, 1/15/2013	EUR		6,550,000		5,993,710
Ford Motor Co., 6.375%, 2/01/2029			1,195,000		442,150
Ford Motor Co., 6.500%, 8/01/2018			2,240,000		918,400
Ford Motor Co., 6.625%, 2/15/2028			500,000		192,500
Ford Motor Co., 6.625%, 10/01/2028			62,410,000		23,715,800
Ford Motor Co., 7.125%, 11/15/2025(b)			1,940,000		766,300
Ford Motor Co., 7.450%, 7/16/2031(b)			114,720,000		49,329,600
Ford Motor Co., 7.500%, 8/01/2026			795,000		329,925
Ford Motor Credit Co. LLC, 5.700%, 1/15/2010			66,163,000		50,670,007
Ford Motor Credit Co. LLC, 7.000%, 10/01/2013			13,455,000		8,268,864
Ford Motor Credit Co. LLC, 7.250%, 10/25/2011			18,760,000		11,929,353
Ford Motor Credit Co. LLC, 7.375%, 10/28/2009			500,000		401,983
Ford Motor Credit Co. LLC, 7.875%, 6/15/2010			1,320,000		1,007,592
Ford Motor Credit Co. LLC, 8.000%, 12/15/2016(b)			18,970,000		11,994,314
Ford Motor Credit Co. LLC, 8.625%, 11/01/2010			29,945,000		21,234,598
Ford Motor Credit Co. LLC, 9.750%, 9/15/2010			2,150,000		1,541,728
Ford Motor Credit Co. LLC, EMTN, 4.875%, 1/15/2010	EUR		12,200,000		11,850,863
General Motors Corp., 7.250%, 7/03/2013(b)	EUR		2,805,000		1,619,041
General Motors Corp., 7.400%, 9/01/2025			9,790,000		3,524,400
General Motors Corp., 8.250%, 7/15/2023(b)			73,625,000		28,897,813
General Motors Corp., 8.375%, 7/15/2033(b)			3,445,000		1,378,000
Goodyear Tire & Rubber Co., 7.000%, 3/15/2028			6,041,000		4,470,340

					254,875,160

Banking – 4.6%
BAC Capital Trust VI, 5.625%, 3/08/2035			35,170,000		26,848,743
Barclays Financial LLC, 4.060%, 9/16/2010, 144A	KRW		38,370,000,000		32,350,397
Barclays Financial LLC, 4.160%, 2/22/2010, 144A	THB		2,816,000,000		82,234,519
Barclays Financial LLC, 4.460%, 9/23/2010, 144A	KRW		48,070,000,000		40,835,305
Barclays Financial LLC, EMTN, 4.100%, 3/22/2010, 144A	THB		247,000,000		7,207,206
BNP Paribas SA, EMTN, Zero Coupon Bond, 6/13/2011, 144A	IDR		273,109,870,000		20,907,531
ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A			12,345,000		8,520,889
JPMorgan Chase & Co., Zero Coupon Bond, 5/17/2010, 144A	BRL		241,667,000		102,159,774
JPMorgan Chase & Co., Zero Coupon Bond, 3/28/2011, 144A	IDR		699,525,000,000		55,131,175

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


		Principal Amount (‡)	Value (†)


BONDS AND NOTES – continued

Banking – continued
JPMorgan Chase & Co., Zero Coupon Bond, 3/28/2011, 144A	IDR	248,433,920,000	$	19,553,304
JPMorgan Chase & Co., Zero Coupon Bond, 4/12/2012, 144A	IDR	599,419,948,640		41,171,188
JPMorgan Chase London, Zero Coupon Bond, 10/21/2010, 144A	IDR	152,206,784,000		12,697,887
Kaupthing Bank, 3.491%, 1/15/2010, 144A(b)(d)		3,635,000		2,835,300
Kaupthing Bank, Series D, 5.750%, 10/04/2011, 144A		52,942,000		33,882,880
Kaupthing Bank, Series E, 6.125%, 10/04/2016, 144A		13,245,000		7,019,850
Kreditanstalt fuer Wiederaufbau, EMTN, 10.750%, 2/01/2010	ISK	95,000,000		906,539
Rabobank Nederland, 10.250%, 9/10/2009, 144A	ISK	4,660,000,000		43,317,691
Rabobank Nederland, EMTN, 12.500%, 2/17/2009	ISK	1,330,000,000		12,396,415
Rabobank Nederland, EMTN, 14.000%, 1/28/2009, 144A	ISK	13,545,000,000		129,061,993

				679,038,586

Brokerage – 0.9%
Bear Stearns Cos., Inc. (The), 4.650%, 7/02/2018		3,260,000		2,552,939
Bear Stearns Cos., Inc. (The), 5.300%, 10/30/2015		1,445,000		1,281,159
Bear Stearns Cos., Inc. (The), 6.400%, 10/02/2017		3,160,000		2,951,114
Bear Stearns Cos., Inc. (The), 7.250%, 2/01/2018		22,055,000		21,225,181
Goldman Sachs Group LP, 5.000%, 10/01/2014		7,620,000		6,355,590
Goldman Sachs Group, Inc. (The), 5.150%, 1/15/2014		3,865,000		3,174,259
Lehman Brothers Holdings, Inc., 6.875%, 7/17/2037(e)		117,630,000		147,037
Lehman Brothers Holdings, Inc., MTN, (fixed rate to 5/03/2027, variable rate thereafter), 6.000%, 5/03/2032(e)		8,005,000		10,006
Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		28,424,000		19,732,396
Merrill Lynch & Co., Inc., 10.710%, 3/08/2017	BRL	100,000,000		37,311,472
Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018	EUR	4,887,000		3,768,201
Morgan Stanley, 3.875%, 1/15/2009		840,000		772,815
Morgan Stanley, 5.375%, 10/15/2015		800,000		495,836
Morgan Stanley, EMTN, 5.450%, 1/09/2017		295,000		182,991
Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		12,400,000		7,687,132
Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		295,000		184,802
Morgan Stanley, Series F, MTN, 6.625%, 4/01/2018		34,440,000		22,792,082
Morgan Stanley, MTN, 6.250%, 8/09/2026		1,900,000		1,161,506

				131,786,518

Building Materials – 0.7%
Owens Corning, Inc., 6.500%, 12/01/2016		24,725,000		21,879,474
Owens Corning, Inc., 7.000%, 12/01/2036		50,335,000		40,463,098


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Building Materials – continued
Ply Gem Industries, Inc., 9.000%, 2/15/2012(b)		$	6,265,000	$	3,414,425
USG Corp., 6.300%, 11/15/2016			34,370,000		25,949,350
USG Corp., 8.000%, 1/15/2018			17,605,000		13,995,975

					105,702,322

Chemicals – 0.4%
Borden, Inc., 7.875%, 2/15/2023			29,454,000		13,548,840
Borden, Inc., 8.375%, 4/15/2016			2,886,000		981,240
Borden, Inc., 9.200%, 3/15/2021			11,255,000		5,627,500
Georgia Gulf Corp., 10.750%, 10/15/2016(b)			1,000,000		450,000
Hercules, Inc., 6.500%, 6/30/2029(c)			19,619,000		13,144,730
Methanex Corp., 6.000%, 8/15/2015			10,555,000		9,284,600
Mosaic Global Holdings, Inc., 7.300%, 1/15/2028			9,000,000		8,460,000
Mosaic Global Holdings, Inc., 7.375%, 8/01/2018			9,095,000		9,031,090

					60,528,000

Construction Machinery – 0.4%
Great Lakes Dredge & Dock Corp., 7.750%, 12/15/2013			3,590,000		3,284,850
Joy Global, Inc., 6.625%, 11/15/2036			1,975,000		1,672,722
Toro Co., 6.625%, 5/01/2037			27,030,000		28,482,484
United Rentals North America, Inc., 7.000%, 2/15/2014			33,413,000		23,389,100
United Rentals North America, Inc., 7.750%, 11/15/2013(b)			3,895,000		2,969,938

					59,799,094

Consumer Cyclical Services – 0.8%
Western Union Co., 6.200%, 11/17/2036			154,180,000		120,481,340


Containers & Packaging – 0.0%
Owens Brockway Glass Container, Inc., 6.750%, 12/01/2014	EUR		2,500,000		3,061,966

Distributors – 0.0%
ONEOK, Inc., 6.000%, 6/15/2035			3,805,000		2,715,777

Electric – 4.1%
AES Corp. (The), 8.375%, 3/01/2011	GBP		1,990,000		3,497,236
AES Corp. (The), 7.750%, 3/01/2014			4,875,000		4,533,750
Bruce Mansfield Unit, 6.850%, 6/01/2034(c)			95,735,000		95,466,942
Cleveland Electric Illuminating Co. (The), 5.950%, 12/15/2036			64,200,000		51,039,449
Commonwealth Edison Co., 4.750%, 12/01/2011(c)			268,000		254,871
Dominion Resources, Inc., 5.950%, 6/15/2035			13,040,000		10,787,862
Dynegy Holdings, Inc., 7.125%, 5/15/2018			5,295,000		3,997,725
Dynegy Holdings, Inc., 7.625%, 10/15/2026			11,835,000		8,639,550
Dynegy Holdings, Inc., 7.750%, 6/01/2019			1,504,000		1,203,200
Dynegy Holdings, Inc., 8.375%, 5/01/2016			2,000,000		1,740,000
Edison Mission Energy, 7.625%, 5/15/2027			23,200,000		18,792,000
Empresa Nacional de Electricidad SA (Endesa-Chile), 7.875%, 2/01/2027			11,581,000		12,128,665

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Electric – continued
Enersis SA, 7.400%, 12/01/2016		$	4,250,000	$	4,294,668
Illinois Power Co., 6.250%, 4/01/2018			3,105,000		2,859,534
ITC Holdings Corp., 5.875%, 9/30/2016, 144A			25,460,000		23,988,692
ITC Holdings Corp., 6.375%, 9/30/2036, 144A			37,955,000		32,797,599
MidAmerican Energy Holdings Co., 6.125%, 4/01/2036			6,540,000		5,500,663
MidAmerican Energy Holdings Co., 6.500%, 9/15/2037			54,485,000		47,802,960
NGC Corporation Capital Trust I, Series B, 8.316%, 6/01/2027(b)			23,775,000		17,712,375
Nisource Finance Corp., 6.400%, 3/15/2018			63,435,000		56,849,749
Power Receivables Finance LLC, 6.290%, 1/01/2012, 144A			1,887,259		1,952,785
Quezon Power Philippines Co., 8.860%, 6/15/2017			5,945,625		5,915,897
Salton Sea Funding Corp., Series E, 8.300%, 5/30/2011			1,468,160		1,567,510
Salton Sea Funding Corp., Series F, 7.475%, 11/30/2018			215,975		223,607
Southern California Edison Co., 7.625%, 1/15/2010(b)			2,000,000		2,077,300
SP Powerassets Ltd., EMTN, 3.730%, 10/22/2010	SGD		1,000,000		710,462
Texas-New Mexico Power Co., 6.250%, 1/15/2009			1,000,000		999,100
Toledo Edison Co., 6.150%, 5/15/2037			13,195,000		10,742,868
TXU Corp., Series P, 5.550%, 11/15/2014			62,401,000		46,567,183
TXU Corp., Series Q, 6.500%, 11/15/2024			139,336,000		88,739,894
TXU Corp., Series R, 6.550%, 11/15/2034			8,266,000		5,078,986
White Pine Hydro LLC, 6.310%, 7/10/2017(c)			9,175,000		8,807,477
White Pine Hydro LLC, 6.960%, 7/10/2037(c)			14,695,000		14,184,128
White Pine Hydro Portfolio LLC, 7.260%, 7/20/2015(c)			5,000,000		4,819,375

					596,274,062

Entertainment – 0.6%
Six Flags, Inc., 9.625%, 6/01/2014(b)			11,190,000		6,266,400
Six Flags, Inc., 9.750%, 4/15/2013(b)			3,875,000		2,247,500
Time Warner, Inc., 6.500%, 11/15/2036			9,510,000		7,221,979
Time Warner, Inc., 6.625%, 5/15/2029			21,780,000		17,396,121
Time Warner, Inc., 6.950%, 1/15/2028			8,805,000		7,340,905
Time Warner, Inc., 7.625%, 4/15/2031			5,885,000		5,110,299
Time Warner, Inc., 7.700%, 5/01/2032			3,785,000		3,307,106
Viacom, Inc., Class B, 6.875%, 4/30/2036			55,225,000		44,272,778

					93,163,088

Food & Beverage – 1.0%
Aramark Services, Inc., 5.000%, 6/01/2012			2,115,000		1,776,600
Corn Products International, Inc., 6.625%, 4/15/2037			31,590,000		32,855,211
Dole Food Co., Inc., 8.625%, 5/01/2009			6,900,000		6,589,500
Kraft Foods, Inc., 6.500%, 8/11/2017			45,310,000		43,597,418
Kraft Foods, Inc., 6.500%, 11/01/2031			14,990,000		13,032,336
Kraft Foods, Inc., 7.000%, 8/11/2037			36,870,000		34,495,682
Sara Lee Corp., 6.125%, 11/01/2032			18,615,000		16,494,938

					148,841,685


		Principal Amount (‡)	Value (†)


BONDS AND NOTES – continued

Foreign Local Governments – 0.1%
Ontario Hydro, Zero Coupon Bond, 11/27/2020	CAD	1,507,000	$	782,748
Province of Alberta, 5.930%, 9/16/2016	CAD	18,123,482		18,448,572

				19,231,320

Government Guaranteed – 0.8%
Canada Housing Trust, 4.100%, 12/15/2008	CAD	130,265,000		122,852,411

Government Owned – No Guarantee – 0.1%
DP World Ltd., 6.850%, 7/02/2037, 144A		20,585,000		15,240,311

Government Sponsored – 1.2%
Federal Home Loan Mortgage Corp., 4.625%, 10/25/2012(b)		32,925,000		33,844,431
Federal National Mortgage Association, 2.290%, 2/19/2009	SGD	145,900,000		101,719,264
Queensland Treasury Corp., 7.125%, 9/18/2017, 144A	NZD	60,170,000		42,255,124

				177,818,819

Health Insurance – 0.1%
CIGNA Corp., 6.150%, 11/15/2036		20,530,000		17,296,114

Healthcare – 5.4%
Boston Scientific Corp., 5.450%, 6/15/2014		3,710,000		3,468,850
Boston Scientific Corp., 6.400%, 6/15/2016		14,305,000		13,589,750
Boston Scientific Corp., 7.000%, 11/15/2035		22,132,000		19,697,480
Covidien International Finance SA, 6.000%, 10/15/2017		24,890,000		24,591,146
Covidien International Finance SA, 6.550%, 10/15/2037		25,070,000		24,102,173
HCA, Inc., 5.750%, 3/15/2014		12,995,000		10,136,100
HCA, Inc., 6.250%, 2/15/2013		7,795,000		6,508,825
HCA, Inc., 6.300%, 10/01/2012		2,500,000		2,156,250
HCA, Inc., 6.375%, 1/15/2015		17,365,000		13,674,937
HCA, Inc., 6.500%, 2/15/2016		63,515,000		50,335,637
HCA, Inc., 6.750%, 7/15/2013		3,040,000		2,553,600
HCA, Inc., 7.050%, 12/01/2027		24,130,000		16,294,748
HCA, Inc., 7.190%, 11/15/2015		19,290,000		15,399,824
HCA, Inc., 7.500%, 12/15/2023		23,835,000		17,460,329
HCA, Inc., 7.500%, 11/06/2033		19,830,000		14,079,300
HCA, Inc., 7.690%, 6/15/2025		65,058,000		48,353,708
HCA, Inc., 8.360%, 4/15/2024		38,139,000		29,560,776
HCA, Inc., MTN, 7.580%, 9/15/2025		17,960,000		13,231,671
HCA, Inc., MTN, 7.750%, 7/15/2036		11,516,000		8,175,208
Hospira, Inc., 6.050%, 3/30/2017		15,175,000		14,468,513
Medco Health Solutions, Inc., 7.125%, 3/15/2018		250,270,000		253,599,342
Owens & Minor, Inc., 6.350%, 4/15/2016(c)		4,710,000		4,586,273
Tenet Healthcare Corp., 6.500%, 6/01/2012		3,660,000		3,385,500
Tenet Healthcare Corp., 6.875%, 11/15/2031		30,578,000		20,793,040
Tenet Healthcare Corp., 7.375%, 2/01/2013		2,236,000		2,034,760
Tenet Healthcare Corp., 9.250%, 2/01/2015(b)		560,000		529,200
WellPoint, Inc., 6.375%, 6/15/2037		191,190,000		163,577,002

				796,343,942

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Home Construction – 1.6%
Centex Corp., 5.250%, 6/15/2015		$	5,110,000	$	3,755,850
D.R. Horton, Inc., 5.250%, 2/15/2015			70,845,000		52,425,300
D.R. Horton, Inc., 5.625%, 9/15/2014			7,235,000		5,498,600
D.R. Horton, Inc., 5.625%, 1/15/2016			26,345,000		19,495,300
D.R. Horton, Inc., 6.500%, 4/15/2016			1,975,000		1,501,000
K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2015			6,430,000		3,665,100
K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016			19,270,000		11,080,250
K. Hovnanian Enterprises, Inc., 6.375%, 12/15/2014			6,249,000		3,624,420
K. Hovnanian Enterprises, Inc., 6.500%, 1/15/2014			4,050,000		2,389,500
K. Hovnanian Enterprises, Inc., 7.500%, 5/15/2016(b)			1,650,000		957,000
K. Hovnanian Enterprises, Inc., 7.750%, 5/15/2013(b)			2,865,000		1,618,725
K. Hovnanian Enterprises, Inc., 8.875%, 4/01/2012(b)			1,690,000		1,073,150
KB Home, 5.875%, 1/15/2015			895,000		711,525
Lennar Corp., 5.125%, 10/01/2010			3,495,000		2,935,800
Lennar Corp., 7.625%, 3/01/2009			5,245,000		5,061,425
Lennar Corp., Series B, 5.500%, 9/01/2014			22,935,000		14,907,750
Lennar Corp., Series B, 5.600%, 5/31/2015			9,112,000		5,922,800
Lennar Corp., Series B, 6.500%, 4/15/2016			40,810,000		27,546,750
Pulte Homes, Inc., 5.200%, 2/15/2015			6,790,000		5,432,000
Pulte Homes, Inc., 6.000%, 2/15/2035			63,520,000		45,416,800
Pulte Homes, Inc., 6.375%, 5/15/2033			17,205,000		12,559,650
Toll Brothers Finance Corp., 5.150%, 5/15/2015			7,935,000		6,710,749
Toll Corp., 8.250%, 12/01/2011			5,550,000		5,328,000

					239,617,444

Independent Energy – 1.8%
Anadarko Petroleum Corp., 5.950%, 9/15/2016			53,650,000		49,310,520
Anadarko Petroleum Corp., 6.450%, 9/15/2036			76,885,000		60,281,531
Chesapeake Energy Corp., 6.250%, 1/15/2017	EUR		5,925,000		6,923,210
Chesapeake Energy Corp., 6.500%, 8/15/2017			3,820,000		3,342,500
Chesapeake Energy Corp., 6.875%, 11/15/2020			13,805,000		11,803,275
Connacher Oil and Gas Ltd., 10.250%, 12/15/2015, 144A			20,226,000		19,416,960
Pioneer Natural Resources Co., 5.875%, 7/15/2016			10,275,000		8,852,334
Pioneer Natural Resources Co., 6.875%, 5/01/2018			2,125,000		1,892,021
Pioneer Natural Resources Co., 7.200%, 1/15/2028			8,782,000		7,560,740
Questar Market Resources, Inc., 6.800%, 4/01/2018			51,725,000		52,154,214
Talisman Energy, Inc., 5.850%, 2/01/2037			12,155,000		9,124,613
Talisman Energy, Inc., 6.250%, 2/01/2038			32,435,000		25,191,583
XTO Energy, Inc., 6.100%, 4/01/2036			2,165,000		1,792,646
XTO Energy, Inc., 6.750%, 8/01/2037			11,225,000		9,960,133

					267,606,280


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Industrial Other – 0.1%
Ranhill Labuan Ltd., 12.500%, 10/26/2011, 144A		$	26,410,000	$	12,676,800

Integrated Energy – 0.0%
PF Export Receivables Master Trust, 6.436%, 6/01/2015, 144A			1,634,046		1,683,067

Life Insurance – 0.5%
ASIF Global Financing XXVII, 2.380%, 2/26/2009, 144A	SGD		38,400,000		13,579,037
Mutual of Omaha Insurance Co., 6.800%, 6/15/2036, 144A			57,985,000		54,549,969

					68,129,006

Local Authorities – 1.6%
Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011	AUD		109,725,000		87,180,000
Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(c)			182,875,000		141,627,544

					228,807,544

Media Cable – 2.4%
Comcast Corp., 5.500%, 3/15/2011			3,000,000		2,945,778
Comcast Corp., 5.650%, 6/15/2035			70,675,000		52,535,060
Comcast Corp., 6.450%, 3/15/2037			59,810,000		48,240,533
Comcast Corp., 6.500%, 11/15/2035			37,670,000		31,451,587
Comcast Corp., 6.950%, 8/15/2037			195,555,000		166,799,224
CSC Holdings, Inc., 7.875%, 2/15/2018			1,550,000		1,364,000
Shaw Communications, Inc., 5.700%, 3/02/2017	CAD		12,775,000		10,747,085
Time Warner Cable, Inc., 6.750%, 7/01/2018			29,500,000		27,550,935
Virgin Media Finance PLC, 9.125%, 8/15/2016			500,000		418,750
Virgin Media Finance PLC, 9.750%, 4/15/2014	GBP		6,605,000		9,041,881

					351,094,833

Media Non-Cable – 0.8%
Clear Channel Communications, Inc., 4.900%, 5/15/2015			20,075,000		5,972,313
Clear Channel Communications, Inc., 5.500%, 9/15/2014			5,195,000		1,610,450
Clear Channel Communications, Inc., 5.500%, 12/15/2016			17,050,000		4,944,500
Clear Channel Communications, Inc., 5.750%, 1/15/2013			2,080,000		748,800
Clear Channel Communications, Inc., 6.875%, 6/15/2018			1,095,000		333,975
News America, Inc., 6.150%, 3/01/2037			64,380,000		52,490,752
News America, Inc., 6.200%, 12/15/2034			17,665,000		14,084,110
News America, Inc., 6.400%, 12/15/2035			29,275,000		24,591,908
R.H. Donnelley Corp., Series A-1, 6.875%, 1/15/2013(b)			4,713,000		1,838,070
R.H. Donnelley Corp., Series A-2, 6.875%, 1/15/2013(b)			2,740,000		1,068,600
R.H. Donnelley Corp., Series A-3, 8.875%, 1/15/2016(b)			927,000		315,180
R.H. Donnelley Corp., Series A-4, 8.875%, 10/15/2017(b)			3,564,000		1,211,760
Tribune Co., 5.250%, 8/15/2015(b)			42,705,000		12,811,500

					122,021,918

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Metals & Mining – 0.4%
Algoma Acquisition Corp., 9.875%, 6/15/2015, 144A		$	13,180,000	$	11,878,475
Newmont Mining Corp., 5.875%, 4/01/2035			5,621,000		4,277,575
OI European Group BV, 6.875%, 3/31/2017, 144A	EUR		3,450,000		4,152,659
United States Steel Corp., 6.050%, 6/01/2017			9,420,000		8,185,519
United States Steel Corp., 6.650%, 6/01/2037			7,865,000		5,849,263
United States Steel Corp., 7.000%, 2/01/2018			22,600,000		20,402,376

					54,745,867

Mortgage Related – 0.0%
Federal Home Loan Mortgage Corp., 5.000%, 12/01/2031			360,066		352,366
Federal Home Loan Mortgage Corp., MTN, 5.000%, 12/14/2018(b)			3,795,000		3,567,133

					3,919,499

Non-Captive Consumer – 3.4%
American General Finance Corp., Series J, MTN, 6.900%, 12/15/2017			337,595,000		156,540,101
Countrywide Financial Corp., Series A, MTN, 3.333%, 12/19/2008(b)(d)			5,670,000		5,605,804
Countrywide Home Loans, Inc., Series L, MTN, 4.000%, 3/22/2011			16,188,000		13,927,410
Hexion US Finance Corp/Hexion Nova Scotia Finance ULC, 9.750%, 11/15/2014			2,320,000		1,832,800
Residential Capital LLC, 8.125%, 11/21/2008(b)			1,280,000		1,088,000
Residential Capital LLC, 8.375%, 6/30/2010(b)			5,670,000		1,304,100
Residential Capital LLC, 8.500%, 6/01/2012			3,905,000		781,000
Residential Capital LLC, 8.500%, 4/17/2013(b)			165,035,000		33,007,000
Residential Capital LLC, 8.875%, 6/30/2015(b)			16,635,000		3,327,000
Residential Capital LLC, 9.625%, 5/15/2015, 144A			64,723,000		15,533,520
SLM Corp., 6.000%, 12/15/2043			146,975(†††)		1,517,884
SLM Corp., Series A, MTN, 4.000%, 1/15/2010			10,300,000		8,085,500
SLM Corp., Series A, MTN, 5.000%, 10/01/2013			72,710,000		45,080,200
SLM Corp., Series A, MTN, 5.000%, 4/15/2015			53,696,000		32,217,600
SLM Corp., Series A, MTN, 5.000%, 6/15/2018			22,293,000		12,261,150
SLM Corp., Series A, MTN, 5.375%, 1/15/2013			28,242,000		18,498,510
SLM Corp., Series A, MTN, 5.375%, 5/15/2014			31,370,000		19,449,400
SLM Corp., Series A, MTN, 5.400%, 10/25/2011(b)			1,750,000		1,225,000
SLM Corp., Series A, MTN, 5.625%, 8/01/2033			38,535,000		19,267,500
SLM Corp., Series A, MTN, 6.500%, 6/15/2010	NZD		8,020,000		4,454,265
SLM Corp., Series A, MTN, 8.450%, 6/15/2018			124,665,000		84,772,200
SLM Corp., EMTN, 4.750%, 3/17/2014	EUR		9,200,000		7,123,470
SLM Corp., MTN, 5.050%, 11/14/2014			27,310,000		16,659,100
SLM Corp., MTN, 5.125%, 8/27/2012			1,925,000		1,251,250

					504,809,764

Non-Captive Diversified – 6.6%
CIT Group Funding Co. of Canada, 5.200%, 6/01/2015			8,278,000		4,065,235
CIT Group, Inc., 4.750%, 12/15/2010			125,000		81,406


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Non-Captive Diversified – continued
CIT Group, Inc., 5.400%, 2/13/2012		$	2,155,000	$	1,238,853
CIT Group, Inc., 5.400%, 1/30/2016			1,558,000		754,074
CIT Group, Inc., 5.500%, 12/01/2014	GBP		29,029,000		25,761,465
CIT Group, Inc., 5.600%, 4/27/2011			10,435,000		6,720,453
CIT Group, Inc., 5.650%, 2/13/2017			3,639,000		1,775,716
CIT Group, Inc., 5.800%, 10/01/2036			16,525,000		7,558,105
CIT Group, Inc., 5.850%, 9/15/2016			30,000		14,550
CIT Group, Inc., Series A, GMTN, 6.000%, 4/01/2036			545,000		223,450
CIT Group, Inc., Series A, MTN, 7.625%, 11/30/2012			342,170,000		217,061,014
CIT Group, Inc., EMTN, 3.800%, 11/14/2012	EUR		21,220,000		16,121,695
CIT Group, Inc., EMTN, 4.650%, 9/19/2016	EUR		21,200,000		14,627,155
CIT Group, Inc., EMTN, 5.000%, 5/13/2014	EUR		6,450,000		4,644,825
CIT Group, Inc., EMTN, 5.500%, 12/20/2016	GBP		16,050,000		14,231,668
CIT Group, Inc., GMTN, 4.250%, 2/01/2010			80,000		52,728
CIT Group, Inc., GMTN, 4.250%, 9/22/2011	EUR		25,450,000		21,399,908
CIT Group, Inc., GMTN, 5.000%, 2/13/2014			8,485,000		4,799,701
CIT Group, Inc., GMTN, 5.000%, 2/01/2015			1,555,000		768,632
CIT Group, Inc., MTN, 4.250%, 3/17/2015	EUR		29,270,000		20,197,935
CIT Group, Inc., MTN, 5.125%, 9/30/2014			13,445,000		6,630,496
General Electric Capital Corp., 6.500%, 9/28/2015	NZD		266,148,000		158,663,554
General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012	SGD		15,000,000		10,235,348
General Electric Capital Corp., Series A, GMTN, 3.485%, 3/08/2012	SGD		150,000,000		104,355,152
General Electric Capital Corp., EMTN, 6.750%, 9/26/2016	NZD		89,945,000		53,531,441
GMAC Canada Ltd., EMTN, 6.625%, 12/17/2010	GBP		500,000		542,244
GMAC LLC, 4.750%, 9/14/2009	EUR		11,775,000		10,609,183
GMAC LLC, 5.625%, 5/15/2009			1,085,000		775,256
GMAC LLC, 6.000%, 12/15/2011			82,530,000		36,696,057
GMAC LLC, 6.625%, 5/15/2012			32,245,000		13,651,501
GMAC LLC, 6.750%, 12/01/2014			49,101,000		18,845,651
GMAC LLC, 6.875%, 9/15/2011			8,945,000		3,991,143
GMAC LLC, 6.875%, 8/28/2012			6,680,000		2,655,153
GMAC LLC, 7.000%, 2/01/2012			16,765,000		6,833,582
GMAC LLC, 8.000%, 11/01/2031			57,598,000		21,730,401
GMAC LLC, EMTN, 5.375%, 6/06/2011	EUR		69,910,000		41,336,115
GMAC LLC, EMTN, 5.750%, 9/27/2010	EUR		8,215,000		5,204,286
iStar Financial, Inc., 5.150%, 3/01/2012			52,875,000		26,437,500
iStar Financial, Inc., 5.375%, 4/15/2010			6,905,000		4,143,000
iStar Financial, Inc., 5.500%, 6/15/2012			3,865,000		1,971,150
iStar Financial, Inc., 5.650%, 9/15/2011			30,335,000		15,774,200
iStar Financial, Inc., 5.800%, 3/15/2011			5,305,000		2,705,550
iStar Financial, Inc., 5.850%, 3/15/2017			6,565,000		3,216,850
iStar Financial, Inc., 5.875%, 3/15/2016			11,605,000		5,686,450
iStar Financial, Inc., 6.050%, 4/15/2015			5,655,000		2,770,950
iStar Financial, Inc., 8.625%, 6/01/2013			46,795,000		22,929,550
iStar Financial, Inc., Series B, 5.125%, 4/01/2011			2,330,000		1,188,300
iStar Financial, Inc., Series B, 5.700%, 3/01/2014			7,645,000		3,746,050

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Non-Captive Diversified – continued
iStar Financial, Inc., Series B, 5.950%, 10/15/2013		$	60,205,000	$	31,306,600

					980,261,281

Oil Field Services – 0.2%
North American Energy Partners, Inc., 8.750%, 12/01/2011			12,530,000		11,527,600
Weatherford International Ltd., 6.500%, 8/01/2036			20,375,000		17,564,085

					29,091,685

Packaging – 0.1%
Owens-Illinois, Inc., 7.800%, 5/15/2018			18,644,000		18,084,680

Paper – 2.9%
Abitibi-Consolidated, Inc., 7.400%, 4/01/2018			11,675,000		2,685,250
Abitibi-Consolidated, Inc., 7.500%, 4/01/2028			14,820,000		3,408,600
Abitibi-Consolidated, Inc., 8.500%, 8/01/2029(b)			4,215,000		1,011,600
Abitibi-Consolidated, Inc., 8.850%, 8/01/2030			47,185,000		11,324,400
Avenor, Inc., 10.850%, 11/30/2014	CAD		450,000		220,118
Bowater, Inc., 6.500%, 6/15/2013			3,880,000		1,493,800
Georgia-Pacific LLC, 7.250%, 6/01/2028			25,782,000		20,367,780
Georgia-Pacific LLC, 7.375%, 12/01/2025			31,207,000		25,199,653
Georgia-Pacific LLC, 7.700%, 6/15/2015			95,000		86,925
Georgia-Pacific LLC, 7.750%, 11/15/2029			80,700,000		66,577,500
Georgia-Pacific LLC, 8.000%, 1/15/2024			21,284,000		18,729,920
Georgia-Pacific LLC, 8.875%, 5/15/2031			27,237,000		23,696,190
International Paper Co., 4.250%, 1/15/2009			2,000,000		1,987,654
International Paper Co., 7.950%, 6/15/2018			211,360,000		207,684,661
Jefferson Smurfit Corp., 7.500%, 6/01/2013			5,520,000		4,471,200
Smurfit-Stone Container Enterprises, Inc., 8.000%, 3/15/2017(b)			1,000,000		780,000
Westvaco Corp., 7.950%, 2/15/2031			21,466,000		20,549,702
Westvaco Corp., 8.200%, 1/15/2030			17,890,000		16,791,644

					427,066,597

Pharmaceuticals – 2.2%
Astrazeneca PLC, 6.450%, 9/15/2037			214,650,000		205,237,812
Elan Financial PLC, 7.750%, 11/15/2011			71,241,000		64,473,105
Elan Financial PLC, 8.875%, 12/01/2013			57,880,000		48,619,200

					318,330,117

Pipelines – 2.3%
Colorado Interstate Gas Co., 5.950%, 3/15/2015			1,099,000		1,001,298
Colorado Interstate Gas Co., 6.800%, 11/15/2015			3,670,000		3,476,782
DCP Midstream LP, 6.450%, 11/03/2036, 144A			27,200,000		21,757,552
El Paso Corp., 6.950%, 6/01/2028			11,959,000		9,442,755
El Paso Corp., 7.420%, 2/15/2037			2,045,000		1,629,423
El Paso Corp., 7.750%, 1/15/2032			1,500,000		1,255,429
El Paso Corp., 7.800%, 8/01/2031			1,000,000		842,517
Energy Transfer Partners LP, 6.125%, 2/15/2017			7,325,000		6,693,827
Energy Transfer Partners LP, 6.625%, 10/15/2036			14,235,000		12,128,647
Enterprise Products Operating LP, 6.300%, 9/15/2017			25,030,000		23,342,653
Kinder Morgan Energy Partners LP, 5.800%, 3/15/2035			778,000		579,417


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Pipelines – continued
Kinder Morgan Finance, 5.700%, 1/05/2016	$	14,160,000	$	12,177,600
Kinder Morgan, Inc., Senior Note, 5.150%, 3/01/2015		16,530,000		14,009,175
NGPL Pipeco LLC, 7.119%, 12/15/2017, 144A		117,630,000		111,646,044
ONEOK Partners LP, 6.650%, 10/01/2036		12,495,000		10,935,037
Plains All American Pipeline LP, 6.125%, 1/15/2017		28,845,000		26,211,221
Plains All American Pipeline LP, 6.650%, 1/15/2037		62,130,000		50,892,236
Southern Natural Gas Co., 7.350%, 2/15/2031		4,695,000		4,116,501
Tennessee Gas Pipeline Co., 7.000%, 10/15/2028(b)		7,900,000		6,769,921
Williams Cos., Inc., 7.500%, 1/15/2031		13,985,000		12,726,070

				331,634,105

Property & Casualty Insurance – 1.3%
Allstate Corp., 5.950%, 4/01/2036		7,745,000		6,313,724
Marsh & McLennan Cos., Inc., 5.375%, 7/15/2014		46,320,000		42,894,265
Marsh & McLennan Cos., Inc., 5.750%, 9/15/2015		34,729,000		32,554,617
Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033		49,522,000		41,479,182
MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A		9,760,000		5,172,800
St. Paul Travelers Co., Inc., 6.750%, 6/20/2036		6,850,000		6,331,804
Travelers Cos., Inc. (The), 6.250%, 6/15/2037		42,880,000		37,174,216
Travelers Property Casualty Corp., 6.375%, 3/15/2033		1,000,000		877,759
Willis North America, Inc., 6.200%, 3/28/2017		12,000,000		10,433,496

				183,231,863

Railroads – 0.5%
Canadian Pacific Railway Co., 5.750%, 3/15/2033		3,830,000		2,972,057
Canadian Pacific Railway Co., 5.950%, 5/15/2037		26,475,000		21,671,535
CSX Corp., 6.000%, 10/01/2036(b)		46,468,000		35,315,029
CSX Corp., 6.250%, 3/15/2018		5,000,000		4,525,470
Missouri Pacific Railroad Co., 5.000%, 1/01/2045(c)		7,804,000		4,682,400

				69,166,491

REITs – 0.8%
Camden Property Trust, 5.700%, 5/15/2017(b)		39,980,000		35,341,440
Colonial Realty LP, 6.050%, 9/01/2016		3,980,000		3,356,995
Duke Realty LP, 5.950%, 2/15/2017		5,705,000		5,106,876
ERP Operating LP, 5.125%, 3/15/2016		4,675,000		3,915,794
First Industrial LP, 5.950%, 5/15/2017		7,750,000		6,194,250
Highwoods Properties, Inc., 5.850%, 3/15/2017		56,685,000		45,470,043
Highwoods Properties, Inc., 7.500%, 4/15/2018		5,640,000		4,998,224
Prologis, 5.625%, 11/15/2015		2,660,000		2,325,622
Prologis, 5.750%, 4/01/2016		2,170,000		1,890,825
Simon Property Group LP, 5.750%, 12/01/2015		3,450,000		3,260,516

				111,860,585

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Restaurants – 0.0%
McDonald’s Corp., EMTN, 3.628%, 10/10/2010	SGD	3,750,000		$	2,670,720

Retailers – 3.8%
Dillard’s, Inc., 6.625%, 1/15/2018		1,920,000			1,190,400
Dillard’s, Inc., 7.000%, 12/01/2028		4,255,000			2,170,050
Dillard’s, Inc., 7.130%, 8/01/2018		1,740,000			1,104,900
Dillard’s, Inc., 7.750%, 7/15/2026		7,182,000			4,093,740
Dillard’s, Inc., 7.750%, 5/15/2027		1,000,000			560,000
Foot Locker, Inc., 8.500%, 1/15/2022		14,269,000			12,913,445
Home Depot, Inc., 5.400%, 3/01/2016		2,998,000			2,549,253
Home Depot, Inc., 5.875%, 12/16/2036		169,255,000			118,981,695
J.C. Penney Corp., Inc., 5.750%, 2/15/2018		5,145,000			4,322,418
J.C. Penney Corp., Inc., 6.375%, 10/15/2036		97,583,000			74,222,020
J.C. Penney Corp., Inc., 7.125%, 11/15/2023(b)		1,933,000			1,762,206
J.C. Penney Corp., Inc., 7.400%, 4/01/2037		4,645,000			3,886,393
J.C. Penney Corp., Inc., 7.625%, 3/01/2097		5,565,000			4,316,214
Lowes Cos., Inc., 6.650%, 9/15/2037		55,705,000			53,429,896
Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		31,595,000			22,884,195
Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		11,098,000			8,750,163
Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		5,133,000			4,013,903
Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		9,245,000			7,087,846
Target Corp., 6.500%, 10/15/2037		10,959,000			10,067,003
Target Corp., 7.000%, 1/15/2038		199,051,000			187,285,892
Toys R Us, Inc., 7.375%, 10/15/2018		39,765,000			25,847,250
Toys R Us, Inc., 7.875%, 4/15/2013		11,255,000			8,778,900

					560,217,782

Sovereigns – 13.0%
Canadian Government, 3.750%, 6/01/2012	CAD	108,410,000			103,991,089
Canadian Government, 4.000%, 6/01/2016	CAD	35,000,000			33,799,953
Canadian Government, 4.250%, 12/01/2008(b)	CAD	474,235,000			447,391,762
Canadian Government, 4.250%, 9/01/2009	CAD	73,725,000			70,176,779
Canadian Government, 5.250%, 6/01/2012	CAD	286,105,000			288,376,635
Canadian Government, 5.750%, 6/01/2033(b)	CAD	48,845,000			56,389,413
Indonesia Treasury Bond, 9.500%, 7/15/2023	IDR	10,000,000,000			797,007
Indonesia Treasury Bond, 10.250%, 7/15/2027	IDR	25,000,000,000			2,069,520
Indonesia Treasury Bond, Series FR43, 10.250%, 7/15/2022	IDR	145,156,000,000			12,425,661
Indonesia Treasury Bond, Series ZC3, Zero Coupon Bond, 11/20/2012	IDR	378,003,000,000			24,190,228
Mexican Fixed Rate Bonds, Series M-10, 8.000%, 12/17/2015	MXN	4,585,000	(††)		40,988,932
Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023	MXN	42,372,800	(††)		371,857,013
Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012	MXN	10,500,000	(††)		98,261,144
New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010	AUD	165,565,000			133,898,987
New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012	AUD	87,640,000			69,492,450
Republic of Brazil, 8.875%, 4/15/2024		32,625,000			38,986,875
Republic of Brazil, 10.250%, 1/10/2028	BRL	97,695,000			45,102,243
Republic of Brazil, 12.500%, 1/05/2016(b)	BRL	17,305,000			9,435,040
Republic of Brazil, 12.500%, 1/05/2022	BRL	114,735,000			61,802,183

					1,909,432,914


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Supermarkets – 0.9%
Albertson’s, Inc., 7.450%, 8/01/2029		$	100,465,000	$	89,356,484
Albertson’s, Inc., 7.750%, 6/15/2026			20,515,000		18,856,731
Albertson’s, Inc., 8.000%, 5/01/2031			9,680,000		8,970,979
Albertson’s, Inc., 8.700%, 5/01/2030			2,995,000		2,966,473
Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028			17,485,000		14,166,277

					134,316,944

Supranational – 3.9%
Eurofima, EMTN, 11.000%, 2/05/2010	ISK		290,000,000		2,746,290
European Investment Bank, Zero Coupon Bond, 3/10/2021	AUD		148,280,000		54,978,653
European Investment Bank, 4.600%, 1/30/2037, 144A	CAD		200,000,000		171,132,722
European Investment Bank, 11.250%, 2/14/2013	BRL		11,505,000		6,038,780
European Investment Bank, EMTN, Zero Coupon Bond, 4/24/2013, 144A	IDR		615,006,960,000		38,948,267
Inter-American Development Bank, EMTN, Zero Coupon Bond, 5/11/2009	BRL		297,000,000		138,909,033
Inter-American Development Bank, EMTN, Zero Coupon Bond, 5/20/2013	IDR		345,270,000,000		20,763,798
Inter-American Development Bank, EMTN, 6.000%, 12/15/2017(b)	NZD		184,525,000		119,318,634
International Bank for Reconstruction & Development, 9.500%, 5/27/2010	ISK		2,126,200,000		19,998,802
Nordic Investment Bank, EMTN, 11.250%, 4/16/2009	ISK		89,400,000		846,025

					573,681,004

Technology – 2.8%
Affiliated Computer Services, Inc., 5.200%, 6/01/2015			115,000		92,862
Agilent Technologies, Inc., 6.500%, 11/01/2017			57,300,000		52,235,654
Alcatel-Lucent, EMTN, 6.375%, 4/07/2014	EUR		500,000		566,640
Amkor Technology, Inc., 7.125%, 3/15/2011			8,785,000		7,906,500
Amkor Technology, Inc., 7.750%, 5/15/2013			11,745,000		10,041,975
Arrow Electronics, Inc., 6.875%, 7/01/2013			14,165,000		14,400,026
Arrow Electronics, Inc., 6.875%, 6/01/2018			5,000,000		4,901,180
Avnet, Inc., 5.875%, 3/15/2014			36,145,000		35,189,435
Avnet, Inc., 6.000%, 9/01/2015			50,685,000		48,830,639
Avnet, Inc., 6.625%, 9/15/2016			15,225,000		14,827,719
Corning, Inc., 5.900%, 3/15/2014			9,330,000		9,031,682
Corning, Inc., 6.200%, 3/15/2016			5,155,000		4,977,256
Corning, Inc., 6.850%, 3/01/2029			10,321,000		9,116,766
Corning, Inc., 7.250%, 8/15/2036			5,645,000		5,004,117
Equifax, Inc., 7.000%, 7/01/2037			19,270,000		16,252,684
Freescale Semiconductor, Inc., 10.125%, 12/15/2016(b)			30,004,000		19,202,560
Lucent Technologies, Inc., 6.450%, 3/15/2029			66,137,000		40,343,570
Lucent Technologies, Inc., 6.500%, 1/15/2028			2,216,000		1,351,760
Motorola, Inc., 5.220%, 10/01/2097			13,750,000		7,679,815
Motorola, Inc., 6.500%, 9/01/2025			12,730,000		9,765,998
Motorola, Inc., 6.500%, 11/15/2028(b)			24,125,000		18,028,564
Motorola, Inc., 6.625%, 11/15/2037			26,570,000		19,368,069
Nortel Networks Corp., 1.750%, 4/15/2012			1,045,000		532,950

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Technology – continued
Nortel Networks Ltd., 6.875%, 9/01/2023		$	18,422,000	$	7,368,800
Nortel Networks Ltd., 10.125%, 7/15/2013			22,825,000		14,550,937
Northern Telecom Capital Corp., 7.875%, 6/15/2026			12,035,000		5,295,400
Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A			5,060,000		5,353,217
Xerox Capital Trust I, 8.000%, 2/01/2027			25,440,000		23,133,381
Xerox Corp., MTN, 7.200%, 4/01/2016			615,000		596,882

					405,947,038

Textile – 0.1%
Kellwood Co., 7.625%, 10/15/2017(c)			11,070,000		6,088,500

Tobacco – 0.6%
Reynolds American, Inc., 6.750%, 6/15/2017			71,085,000		66,422,535
Reynolds American, Inc., 7.250%, 6/15/2037			17,990,000		17,215,674

					83,638,209

Transportation Services – 0.8%
APL Ltd., 8.000%, 1/15/2024(c)			20,144,000		15,108,000
Atlas Air, Inc., Series 1999-1, Class A-1, 7.200%, 7/02/2020			13,231,396		11,511,314
Atlas Air, Inc., Series 1999-1A, 6.880%, 1/02/2011			1,153,157		1,037,841
Atlas Air, Inc., Series 1999-1B, 7.630%, 7/02/2016(f)			18,164,300		17,801,014
Atlas Air, Inc., Series 1999-1C, 8.770%, 7/02/2012(f)			15,689,997		14,434,797
Atlas Air, Inc., Series 2000-1, Class B, 9.057%, 7/02/2017(f)			9,260,147		9,630,553
Atlas Air, Inc., Series 2000-1, Class C, 9.702%, 7/02/2011(f)			201,720		183,565
Atlas Air, Inc., Series B, 7.680%, 1/02/2014(f)			39,925,752		39,925,752
Atlas Air, Inc., Series C, 8.010%, 1/02/2010(f)			6,552,024		5,110,579

					114,743,415

Wireless – 1.8%
ALLTEL Corp., 6.800%, 5/01/2029			12,987,000		11,785,702
ALLTEL Corp., 7.875%, 7/01/2032			79,364,000		78,768,770
Nextel Communications, Inc., Series D, 7.375%, 8/01/2015			31,849,000		21,020,340
Nextel Communications, Inc., Series E, 6.875%, 10/31/2013			16,950,000		11,526,000
Nextel Communications, Inc., Series F, 5.950%, 3/15/2014			49,753,000		33,334,510
Rogers Wireless, Inc., 6.375%, 3/01/2014			1,895,000		1,812,344
Rogers Wireless, Inc., 7.625%, 12/15/2011(b)	CAD		6,990,000		6,976,142
Sprint Capital Corp., 6.875%, 11/15/2028			42,331,000		28,361,770
Sprint Capital Corp., 6.900%, 5/01/2019			31,405,000		24,338,875
Sprint Nextel Corp., 6.000%, 12/01/2016			15,184,000		11,691,680
True Move Co. Ltd., 10.750%, 12/16/2013, 144A			36,610,000		24,894,800
Vodafone Group PLC, 6.150%, 2/27/2037			2,655,000		2,132,257

					256,643,190


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Wirelines – 5.4%
AT&T Corp., 6.500%, 3/15/2029		$	27,859,000	$	23,322,997
AT&T, Inc., 6.150%, 9/15/2034			14,755,000		12,305,080
AT&T, Inc., 6.500%, 9/01/2037			152,250,000		129,516,030
Bell Canada, Series M-17, 6.100%, 3/16/2035	CAD		45,750,000		31,291,409
Bell Canada, MTN, 5.000%, 2/15/2017	CAD		7,738,000		5,742,807
Bell Canada, MTN, 6.550%, 5/01/2029, 144A	CAD		5,790,000		4,136,103
Bell Canada, MTN, 7.300%, 2/23/2032	CAD		12,705,000		9,812,904
BellSouth Corp., 6.000%, 11/15/2034(b)			25,445,000		20,610,450
BellSouth Corp., 6.550%, 6/15/2034			1,525,000		1,307,428
Embarq Corp., 7.995%, 6/01/2036			8,735,000		6,246,486
GTE Corp., 6.940%, 4/15/2028			11,700,000		9,927,602
Hawaiian Telcom Communications, Inc., Series B, 12.500%, 5/01/2015(b)			640,000		89,600
Koninklijke (Royal) KPN NV, 8.375%, 10/01/2030			10,505,000		11,253,345
Koninklijke (Royal) KPN NV, EMTN, 5.750%, 3/18/2016	GBP		1,600,000		2,640,122
Koninklijke (Royal) KPN NV, GMTN, 4.000%, 6/22/2015	EUR		2,750,000		3,347,721
Level 3 Financing, Inc., 8.750%, 2/15/2017			43,605,000		31,613,625
Level 3 Financing, Inc., 9.250%, 11/01/2014			17,580,000		13,272,900
New England Telephone & Telegraph, 7.875%, 11/15/2029			2,740,000		2,474,686
Qwest Capital Funding, Inc., 6.500%, 11/15/2018			29,990,000		21,817,725
Qwest Capital Funding, Inc., 6.875%, 7/15/2028			66,907,000		46,500,365
Qwest Capital Funding, Inc., 7.625%, 8/03/2021(b)			15,025,000		11,419,000
Qwest Capital Funding, Inc., 7.750%, 2/15/2031			40,120,000		29,287,600
Qwest Corp., 6.875%, 9/15/2033			37,295,000		25,080,887
Qwest Corp., 7.200%, 11/10/2026			1,505,000		1,106,175
Qwest Corp., 7.250%, 9/15/2025			9,920,000		7,390,400
Qwest Corp., 7.500%, 6/15/2023			3,275,000		2,570,875
Telecom Italia Capital, 6.000%, 9/30/2034			30,915,000		21,659,667
Telecom Italia Capital, 6.375%, 11/15/2033			26,400,000		19,240,320
Telefonica Emisiones SAU, 7.045%, 6/20/2036			174,550,000		157,871,747
Telus Corp., 4.950%, 3/15/2017	CAD		45,415,000		38,693,964
Verizon Communications, 5.850%, 9/15/2035			87,716,000		68,587,772
Verizon Maryland, Inc., 5.125%, 6/15/2033			10,290,000		6,961,710
Verizon New York, Inc., Series B, 7.375%, 4/01/2032			17,475,000		15,254,452

					792,353,954


TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $15,219,384,285)					12,885,749,218


CONVERTIBLE BONDS – 3.7%

Healthcare – 0.2%
Affymetrix, Inc., 3.500%, 1/15/2038			18,449,000		12,914,300
Invitrogen Corp., 1.500%, 2/15/2024			14,480,000		13,050,100

					25,964,400

Industrial Other – 0.1%
Incyte Corp., 3.500%, 2/15/2011(b)			24,551,000		22,494,854

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Media Non-Cable – 0.1%
Liberty Media LLC, 3.500%, 1/15/2031	$	10,159,813	$	4,495,717
Sinclair Broadcast Group, Inc., (Step to 2.000% on 1/15/2011), 4.875%, 7/15/2018(g)		4,048,000		3,673,560

				8,169,277

Non-Captive Consumer – 0.3%
Countrywide Financial Corp., Series A, Zero Coupon Bond, 4/15/2037(b)		11,242,000		11,017,160
Countrywide Financial Corp., Series B, 0.554%, 5/15/2037(b)(d)		33,004,000		30,033,640

				41,050,800

Non-Captive Diversified – 0.2%
iStar Financial, Inc., 3.291%, 10/01/2012(d)		60,445,000		32,338,075

Pharmaceuticals – 0.9%
Epix Pharmaceuticals, Inc., 3.000%, 6/15/2024		7,122,000		3,561,000
Human Genome Sciences, Inc., 2.250%, 8/15/2012		50,150,000		33,475,125
Nektar Therapeutics, 3.250%, 9/28/2012		26,120,000		13,157,950
Valeant Pharmaceuticals International, 3.000%, 8/16/2010		34,125,000		32,248,125
Valeant Pharmaceuticals International, 4.000%, 11/15/2013		33,914,000		31,751,983
Vertex Pharmaceuticals, Inc., 4.750%, 2/15/2013		11,035,000		16,649,056

				130,843,239

REITs – 0.2%
Host Hotels & Resorts, Inc., 2.625%, 4/15/2027, 144A(b)		29,380,000		22,769,500

Technology – 0.5%
Avnet, Inc., 2.000%, 3/15/2034		18,780,000		18,709,575
Kulicke & Soffa Industries, Inc., 0.500%, 11/30/2008		10,920,000		10,565,100
Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		10,025,000		6,854,594
Kulicke & Soffa Industries, Inc., 1.000%, 6/30/2010		5,915,000		4,635,881
Maxtor Corp., 5.750%, 3/01/2012(c)		9,467,000		8,709,640
Nortel Networks Corp., 2.125%, 4/15/2014		49,636,000		23,763,235
Richardson Electronics Ltd., 7.750%, 12/15/2011		395,000		296,250

				73,534,275

Textile – 0.0%
Dixie Yarns, Inc., 7.000%, 5/15/2012		144,000		128,160

Transportation Services – 0.0%
Builders Transportation, Inc., 8.000%, 8/15/2005(h)		1,000,000		—
Preston Corp., 7.000%, 5/01/2011		602,000		535,780

				535,780

Wireless – 0.1%
Nextel Communications, Inc., 5.250%, 1/15/2010		3,505,000		3,285,937
NII Holdings, Inc., 3.125%, 6/15/2012		21,974,000		16,260,760

				19,546,697


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Wirelines – 1.1%
Level 3 Communications, Inc., 2.875%, 7/15/2010	$	41,240,000	$	32,424,950
Level 3 Communications, Inc., 3.500%, 6/15/2012		46,770,000		33,031,313
Level 3 Communications, Inc., 5.250%, 12/15/2011		19,145,000		15,818,556
Level 3 Communications, Inc., 6.000%, 9/15/2009		39,230,000		36,876,200
Level 3 Communications, Inc., 6.000%, 3/15/2010(b)		43,124,000		37,733,500

				155,884,519


TOTAL CONVERTIBLE BONDS
(Identified Cost $618,940,165)				533,259,576


MUNICIPALS – 1.0%

Alabama – 0.0%
Alabama Public School & College Authority (Capital Improvement), 4.500%, 12/01/2026		4,640,000		4,046,544

California – 0.4%
San Diego Unified School District (Election 1998), 4.500%, 7/01/2029, Series F-1 (FSA insured)		4,870,000		4,089,485
San Jose California Redevelpoment Agency Tax Allocation (Merged Area Redevelopment), 3.750%, 8/01/2028, Series C (MBIA insured)		2,165,000		1,592,812
San Jose Redevelopment Agency Tax Allocation (Merged Area), 3.750%, 8/01/2028, Series C (MBIA insured)		5,425,000		3,962,203
State of California, 4.500%, 8/01/2027 (AMBAC insured)		7,340,000		6,182,849
State of California, 4.500%, 10/01/2029		20,455,000		16,970,491
State of California, 4.500%, 8/01/2030 (AMBAC insured)		5,945,000		4,910,392
State of California, 4.500%, 8/01/2030		5,140,000		4,245,486
State of California (Various Purpose), 3.250%, 12/01/2027 (MBIA insured)		3,805,000		2,653,417
State of California (Various Purpose), 4.500%, 12/01/2033 (AMBAC insured)		17,945,000		14,415,218
University of California Regents Medical Center, 4.750%, 5/15/2031, Series A (MBIA insured)		1,260,000		1,081,596

				60,103,949

District Of Columbia – 0.0%
District of Columbia, 4.750%, 6/01/2036, Series A (FGIC insured)		4,640,000		3,793,432

Florida – 0.1%
Florida State Turnpike Authority (Department of Transportation), 3.500%, 7/01/2027, Series A (MBIA insured)		4,640,000		3,401,074
Jacksonville Electric Authority, Florida Water & Sewer Systems Revenue, 4.750%, 10/01/2041, Series B (MBIA insured)		7,355,000		6,204,089

				9,605,163

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Illinois – 0.1%
Chicago Board of Education, 4.750%, 12/01/2031, Series B (FSA insured)	$	8,020,000	$	7,109,329
Chicago O’Hare International Airport, 4.500%, 1/01/2038, Series A (FSA insured)		2,440,000		1,986,916

				9,096,245

Louisiana – 0.0%
State of Louisiana, 3.250%, 5/01/2026, Series C (FSA insured)		4,640,000		3,310,779

Massachusetts – 0.0%
Massachusetts School Building Authority, 4.750%, 8/15/2032, Series A (AMBAC insured)		4,645,000		3,951,827

Michigan – 0.1%
Grosse Pointe Public School System, 3.000%, 5/01/2027 (FGIC insured)		2,800,000		1,866,956
Michigan Tobacco Settlement Finance Authority, 7.309%, 6/01/2034(c)		21,455,000		18,477,046

				20,344,002

Nebraska – 0.1%
Omaha Public Power District, 4.500%, 2/01/2034, Series AA (FGIC insured)		11,595,000		9,442,968

Ohio – 0.1%
Buckeye Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/01/2047(c)		10,390,000		7,855,256

Texas – 0.1%
Harris County, TX, 4.500%, 10/01/2031, Series B		13,125,000		11,302,594

Wisconsin – 0.0%
Green Bay Wisconsin Water System Revenue, 3.500%, 11/01/2026 (FSA insured)		3,170,000		2,373,728
Green Bay Wisconsin Water System Revenue, 3.500%, 11/01/2029 (FSA insured)		3,415,000		2,459,517
Wisconsin Housing & Economic Development Authority, 4.900%, 11/01/2035, Series E		1,185,000		1,038,202

				5,871,447


TOTAL MUNICIPALS
(Identified Cost $164,977,221)				148,724,206


TOTAL BONDS AND NOTES
(Identified Cost $16,003,301,671)				13,567,733,000


BANK LOANS – 1.1%

Automotive – 0.5%
Chrysler LLC, First Lien Term Loan, 6.490%, 8/03/2013(i)		162,996,784		67,100,886

Consumer Products – 0.0%
Mega Bloks, Inc., Term Loan B, 8.750%, 7/26/2012(i)		8,473,162		6,609,066


	Principal Amount (‡)		Value (†)


BANK LOANS – continued

Food & Beverage – 0.1%
Dole Food Co., Inc., LOC, 4.788%, 4/12/2013(i)	$	819,260	$	718,492
Dole Food Co., Inc., Term Loan, 4.738%, 4/12/2013(i)		1,651,974		1,448,781
Dole Food Co., Inc., Tranche C Term Loan, 4.795%, 4/12/2013(i)		6,156,743		5,399,463

				7,566,736

Media Non-Cable – 0.2%
Idearc, Inc., Term Loan B, 5.767%, 11/17/2014(i)		43,798,015		26,114,567
Tribune Co., Tranche X, 5.541%, 6/04/2009(i)		4,666,005		4,321,887

				30,436,454

Oil Field Services – 0.0%
Dresser, Inc., Second Lien Term Loan, 8.557%, 5/04/2015(i)		3,515,000		3,022,900
Dresser, Inc., Term Loan B, 5.096%, 5/04/2014(i)		1,734,381		1,565,279

				4,588,179

Paper – 0.1%
Georgia Pacific Corp., First Lien Term Loan, 4.689%, 12/20/2012(i)		8,444,539		7,364,820
Georgia Pacific Corp., Term Loan B2, 4.299%, 12/20/2012(i)		2,800,876		2,549,189

				9,914,009

Technology – 0.1%
Nuance Communications, Inc., Incremental Term Loan, 5.960%, 3/31/2013(i)		16,375,628		14,246,797

Wirelines – 0.1%
Hawaiian Telcom Communications, Inc., Term Loan C, 6.262%, 6/01/2014(i)		23,831,579		16,392,790


TOTAL BANK LOANS
(Identified Cost $214,654,413)				156,854,917


	Shares

COMMON STOCKS – 0.7%

Biotechnology – 0.2%
Vertex Pharmaceuticals, Inc.(b)(f)		879,080		29,220,619

Communications Equipment – 0.1%
Corning, Inc.		630,490		9,860,864

Containers & Packaging – 0.1%
Owens-Illinois, Inc.(f)		639,339		18,796,566

Oil, Gas & Consumable Fuels – 0.2%
Chesapeake Energy Corp.(b)		1,026,780		36,820,331

Thrifts & Mortgage Finance – 0.1%
Federal Home Loan Mortgage Corp.(b)(k)		6,751,988		11,545,899


TOTAL COMMON STOCKS
(Identified Cost $170,032,706)				106,244,279

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


	Shares	Value (†)


PREFERRED STOCKS – 1.2%

CONVERTIBLE PREFERRED STOCKS – 0.8%

Automotive – 0.2%
Ford Motor Co., Capital Trust II, 6.500%(b)	1,957,035	$	30,138,339
General Motors Corp., 6.250%	104,656		837,248

			30,975,587

Capital Markets – 0.1%
Newell Financial Trust I, 5.250%	207,122		7,987,142

Commercial Banks – 0.0%
Wachovia Corp., 7.500%	8,193		3,154,305

Construction Materials – 0.0%
Williams Cos., Inc., 5.500%	25,000		2,729,687

Diversified Consumer Services – 0.0%
Six Flags, Inc., 7.250%	517,100		2,890,589

Diversified Financial Services – 0.0%
CIT Group, Inc., 8.750%	12,500		411,625
Sovereign Capital Trust, 4.375%	195,788		4,493,335

			4,904,960

Electric Utilities – 0.2%
AES Trust III, 6.750%(b)	346,577		13,291,228
CMS Energy Trust I, 7.750%	207,375		8,295,000

			21,586,228

Machinery – 0.0%
United Rentals Trust, 6.500%	206,396		4,540,712

Oil, Gas & Consumable Fuels – 0.1%
Chesapeake Energy Corp., 4.500%(b)	87,351		8,691,425
El Paso Energy Capital Trust I, 4.750%	189,879		6,325,344

			15,016,769

REITs – 0.0%
FelCor Lodging Trust, Inc., Series A, 7.800%	53,600		656,600

Semiconductors & Semiconductor Equipment – 0.2%
Lucent Technologies Capital Trust, 7.750%	44,211		20,542,641


TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified Cost $196,650,286)			114,985,220


NON-CONVERTIBLE PREFERRED STOCKS – 0.4%

Banking – 0.1%
Bank of America Corp., 7.250%	16,772		14,054,936

Capital Markets – 0.0%
Lehman Brothers Holdings Capital Trust I, 6.000%(e)	55,575		8,892
Lehman Brothers Holdings, Inc., 5.670%(e)	103,114		7,218
Lehman Brothers Holdings, Inc., 5.940%(e)	109,313		3,826
Lehman Brothers Holdings, Inc., 6.500%(e)	479,083		23,954
Lehman Brothers Holdings, Inc., 7.250%(e)(f)	40,860		40,860
Lehman Brothers Holdings, Inc., 7.950%(b)(e)	513,734		30,824
Merrill Lynch & Co., Inc., 6.375%	53,000		725,570

			841,144


	Shares	Value (†)



PREFERRED STOCKS – continued

Diversified Financial Services – 0.0%
CIT Group, Inc., 6.350%(b)	779,310	$	6,039,653

Electric Utilities – 0.0%
Connecticut Light & Power Co., 3.800%	2,925		107,311
Entergy Arkansas, Inc., 4.320%	100		8,122
Entergy Mississippi, Inc., 4.360%	5,000		420,625
Entergy New Orleans, Inc., 4.360%	665		49,335
Entergy New Orleans, Inc., 4.750%	200		15,262
MDU Resources Group, Inc., 5.100%	1,318		131,965
Public Service Company of Oklahoma, 4.000%	360		28,957
Southern California Edison Co., 4.780%	50,100		1,042,080
Xcel Energy, Inc., 3.600%	1,100		76,560

			1,880,217

Thrifts & Mortgage Finance – 0.4%
Countrywide Capital IV, 6.750%	534,725		4,759,053
Federal Home Loan Mortgage Corp., 5.000%(f)(k)	104,800		188,640
Federal Home Loan Mortgage Corp., 5.570%(f)(k)	2,451,457		2,426,942
Federal Home Loan Mortgage Corp., 5.660%(f)(k)	624,479		780,599
Federal Home Loan Mortgage Corp., 5.700%(f)(k)	171,050		319,864
Federal Home Loan Mortgage Corp., 5.790%(f)(k)	399,250		798,500
Federal Home Loan Mortgage Corp., 5.810%(f)(k)	115,450		202,038
Federal Home Loan Mortgage Corp., 5.900%(f)(k)	310,023		387,529
Federal Home Loan Mortgage Corp., 6.000%(f)(k)	134,800		242,640
Federal Home Loan Mortgage Corp., 6.420%(f)(k)	125,980		226,764
Federal Home Loan Mortgage Corp., 6.550%(f)(k)	541,540		584,863
Federal Home Loan Mortgage Corp., 8.375%(b)(f)(k)	5,365,743		8,746,161
Federal National Mortgage Association, 4.750%(k)	270,954		839,957
Federal National Mortgage Association, 5.125%(k)	204,700		716,450
Federal National Mortgage Association, 5.375%(k)	146,350		482,955
Federal National Mortgage Association, 5.810%(k)	79,850		287,460
Federal National Mortgage Association, 6.750%(k)	123,143		221,657
Federal National Mortgage Association, 8.250%(b)(k)	9,291,596		20,255,679

			42,467,751


TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Identified Cost $487,997,634)			65,283,701


TOTAL PREFERRED STOCKS
(Identified Cost $684,647,920)			180,268,921


CLOSED END INVESTMENT COMPANIES – 0.2%
BlackRock Senior High Income Fund, Inc.	199,071		652,953
Dreyfus High Yield Strategies Fund	1,033,274		3,079,157
DWS High Income Trust	177,909		590,658
Highland Credit Strategies Fund	860,000		8,221,600
Morgan Stanley Emerging Markets Debt Fund, Inc.	356,954		2,580,777
Van Kampen High Income Trust II	141,611		324,289
Western Asset High Income Opportunity Fund, Inc.	2,217,450		9,623,733
Western Asset Managed High Income Fund, Inc.(b)	1,369,100		6,119,877


TOTAL CLOSED END INVESTMENT COMPANIES
(Identified Cost $45,128,723)			31,193,044

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Bond Fund – continued


	Shares/Principal Amount (‡)		Value (†)


SHORT-TERM INVESTMENTS – 5.3%
State Street Navigator Securities Lending Prime Portfolio(j)		387,498,967	$	387,498,967
Repurchase Agreement with State Street Corp. dated 9/30/2008 at 1.300%, to be repurchased at $25,908,477 on 10/1/2008 collateralized by $25,405,000 Federal National Mortgage Association, 4.850% due 12/03/2012 valued at $25,908,641 including accrued interest (Note 2h of Notes to Financial Statements)	$	25,907,541		25,907,541
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300%, to be repurchased at $372,522,452 on 10/1/2008 collateralized by $1,475,000 Federal Home Loan Mortgage Corp., 5.250% due 4/3/2012 valued at $1,528,469; $94,635,000 Federal Home Loan Bank Discount Notes, due 11/21/2008 valued at $94,280,119; $140,000,000 Federal Home Loan Bank Discount Notes, due 11/26/2008 valued at $139,475,000; $95,620,000 Federal Home Loan Bank Discount Notes, due 12/05/2008 valued at $95,141,900; $48,565,000 Federal Home Loan Bank, 5.000% due 12/12/2008 valued at $49,536,300 including accrued interest (Note 2h of Notes to Financial Statements)		372,509,000		372,509,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $785,915,508)				785,915,508


TOTAL INVESTMENTS – 100.9%
(Identified Cost $17,903,680,941)(a)				14,828,209,669
Other Assets Less Liabilities—(0.9)%				(137,500,502)


NET ASSETS – 100.0%			$	14,690,709,167


(‡) Principal amount stated in U.S. dollars unless otherwise noted.
(†) See Note 2a of Notes to Financial Statements.
(††) Amount shown represents units. One unit represents a principal amount of 100.
(†††)Amount shown represents units. One unit represents a principal amount of 25.
(a) Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $17,913,715,806 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	268,167,819
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(3,353,673,956)

Net unrealized depreciation			$	(3,085,506,137)

(b)

All or a portion of this security was on loan to brokers at September 30, 2008.

(c)

Illiquid security. At September 30, 2008, the value of these securities amounted to $343,812,182 or 2.3% of net assets.

(d)

Variable rate security. Rate as of September 30, 2008 is disclosed.

(e)

Issuer has filed for bankruptcy.

(f)

Non-income producing security.

(g)

Step Bond: Coupon is a fixed rate for an initial period then resets at a specified date and rate.

(h)

Bankrupt issuer. Security remains in the Portfolio of Investments pending final resolution of bankruptcy proceedings.

(i)

Variable rate security. Rate shown represents the weighted average rate at September 30, 2008.

(j)

Represents investment of securities lending collateral.

(k)

Future dividend payments have been eliminated as the issuer has been placed in conservatorship.

144A

Securities 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, 2008, the total value of these securities amounted to $1,357,865,233 or 9.2% of net assets.

AMBAC

American Municipal Bond Assurance Corp.

EMTN

Euro Medium Term Note

FGIC

Financial Guaranty Insurance Company

FSA

Financial Security Assurance, Inc.

GMTN

Global Medium Term Note

LOC

Letter of Credit

MBIA

Municipal Bond Investor Assurance Corp.

MTN

Medium Term Note

REITs

Real Estate Investment Trusts

Key to Abbreviations: AUD: Australian Dollar; BRL: Brazilian Real; CAD: Canadian Dollar; EUR: Euro; GBP: British Pound; IDR: Indonesian Rupiah; ISK: Icelandic Krona; KRW: South Korean Won; MXN: Mexican Peso; NZD: New Zealand Dollar; SGD: Singapore Dollar; THB: Thai Baht

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Sovereigns	13.0	%
Non-Captive Diversified	6.8
Wirelines	6.6
Healthcare	5.6
Banking	4.7
Electric	4.1
Supranational	3.9
Retailers	3.8
Non-Captive Consumer	3.7
Technology	3.4
Pharmaceuticals	3.1
Paper	3.0
Automotive	2.4
Media Cable	2.4
Pipelines	2.3
Other Investments, less than 2% each	26.8
Short-Term Investments	5.3

Total Investments	100.9
Other assets less liabilities	(0.9	)

Net Assets	100.0	%

CURRENCY EXPOSURE AT SEPTEMBER 30, 2008 AS A PERCENTAGE OF NET ASSETS (Unaudited)


United States Dollar	72.5	%
Canadian Dollar	9.7
Mexican Peso	3.5
Brazilian Real	2.7
New Zealand Dollar	2.6
Australian Dollar	2.4
Other, less than 2% each	7.5

Total Investments	100.9
Other assets less liabilities	(0.9	)

Net Assets	100.0	%

See accompanying notes to financial statements.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Fixed Income Fund


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – 84.7% of Net Assets

NON-CONVERTIBLE BONDS – 80.6%

ABS Credit Card – 0.6%
Citibank Credit Card Issuance Trust, Series 2008-C6, 6.300%, 6/20/2014		$	4,265,000	$	3,705,962

Aerospace & Defense – 0.0%
Bombardier, Inc., 7.450%, 5/01/2034, 144A			175,000		162,750

Airlines – 0.5%
American Airlines, Inc., Series 1999-1, 7.324%, 4/15/2011			250,000		237,500
American Airlines, Inc., Series 93A6, 8.040%, 9/16/2011			23,424		17,685
Continental Airlines, Inc., Series 2000-2, Class B, 8.307%, 10/02/2019			123,157		97,909
Continental Airlines, Inc., Series 2001-1, Class B, 7.373%, 6/15/2017			203,816		152,862
Continental Airlines, Inc., Series 971A, 7.461%, 10/01/2016			458,014		398,472
Delta Air Lines, Inc., Series 2007-1, Class C, 8.954%, 8/10/2014			1,878,052		1,370,978
United Air Lines, Inc., 6.636%, 1/02/2024			1,232,139		911,783

					3,187,189

Asset-Backed Securities – 0.1%
Community Program Loan Trust, Series 1987-A, Class A5, 4.500%, 4/01/2029			725,000		643,945
Ford Credit Auto Owner Trust, 4.380%, 1/15/2010			28,106		28,072

					672,017

Automotive – 1.6%
Cummins, Inc., 7.125%, 3/01/2028			2,400,000		2,296,726
FCE Bank PLC, EMTN, 7.125%, 1/16/2012	EUR		300,000		282,968
FCE Bank PLC, EMTN, 7.125%, 1/15/2013	EUR		200,000		183,014
Ford Motor Co., 6.375%, 2/01/2029			730,000		270,100
Ford Motor Co., 6.500%, 8/01/2018			50,000		20,500
Ford Motor Co., 6.625%, 10/01/2028			2,435,000		925,300
Ford Motor Co., 7.125%, 11/15/2025(b)			595,000		235,025
Ford Motor Co., 7.450%, 7/16/2031			5,065,000		2,177,950
Ford Motor Credit Co. LLC, 5.700%, 1/15/2010			750,000		574,377
Ford Motor Credit Co. LLC, 7.000%, 10/01/2013			230,000		141,348
Ford Motor Credit Co. LLC, 7.875%, 6/15/2010			500,000		381,664
Ford Motor Credit Co. LLC, 8.000%, 12/15/2016			565,000		357,237
General Motors Corp., 7.400%, 9/01/2025			250,000		90,000
General Motors Corp., 8.250%, 7/15/2023(b)			4,435,000		1,740,737
General Motors Corp., 8.375%, 7/15/2033(b)			275,000		110,000
Goodyear Tire & Rubber Co., 7.000%, 3/15/2028			375,000		277,500

					10,064,446

Banking – 5.0%
BAC Capital Trust VI, 5.625%, 3/08/2035			2,385,000		1,820,707
Bank of America Corp., 4.850%, 11/15/2014			500,000		426,776
Barclays Financial LLC, 4.060%, 9/16/2010, 144A	KRW		2,340,000,000		1,972,894
Barclays Financial LLC, 4.160%, 2/22/2010, 144A	THB		175,000,000		5,110,455
Barclays Financial LLC, EMTN, 4.100%, 3/22/2010, 144A	THB		45,000,000		1,313,054


		Principal Amount (‡)	Value (†)


BONDS AND NOTES – continued

Banking – continued
BNP Paribas SA, EMTN, Zero Coupon Bond, 6/13/2011, 144A	IDR	18,710,000,000	$	1,432,317
JPMorgan Chase & Co., Zero Coupon Bond, 5/17/2010, 144A	BRL	16,585,000		7,010,969
JPMorgan Chase & Co., Zero Coupon Bond, 3/28/2011, 144A	IDR	13,692,036,000		1,079,101
JPMorgan Chase & Co., Zero Coupon Bond, 3/28/2011, 144A	IDR	17,920,000,000		1,410,416
JPMorgan Chase & Co., Zero Coupon Bond, 4/12/2012, 144A	IDR	21,194,634,240		1,455,754
JPMorgan Chase London, Zero Coupon Bond, 10/21/2010, 144A	IDR	18,824,303,000		1,570,422
Kaupthing Bank, 3.491%, 1/15/2010, 144A(b)(c)		200,000		156,000
Kaupthing Bank, Series D, 5.750%, 10/04/2011, 144A		2,700,000		1,728,000
Kaupthing Bank, Series E, 6.125%, 10/04/2016, 144A		500,000		265,000
Rabobank Nederland, 10.250%, 9/10/2009, 144A	ISK	360,000,000		3,346,431
Rabobank Nederland, EMTN, 12.500%, 2/17/2009	ISK	70,000,000		652,443
Rabobank Nederland, EMTN, 14.000%, 1/28/2009, 144A	ISK	48,000,000		457,362

				31,208,101

Brokerage – 1.6%
Goldman Sachs Group LP, 5.000%, 10/01/2014		3,855,000		3,215,328
Goldman Sachs Group, Inc. (The), 5.150%, 1/15/2014		1,955,000		1,605,608
Lehman Brothers Holdings, Inc., 6.875%, 7/17/2037(d)		4,895,000		6,119
Lehman Brothers Holdings, Inc., MTN, (fixed rate to 5/03/2027, variable rate thereafter), 6.000%, 5/03/2032(d)		390,000		488
Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018	EUR	1,000,000		771,066
Morgan Stanley, 3.875%, 1/15/2009		1,870,000		1,720,434
Morgan Stanley, 5.375%, 10/15/2015		1,700,000		1,053,651
Morgan Stanley, EMTN, 5.450%, 1/09/2017		370,000		229,514
Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		500,000		309,965
Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		370,000		231,785
Morgan Stanley, Series F, MTN, 6.625%, 4/01/2018		1,245,000		823,930

				9,967,888

Building Materials – 0.5%
Owens Corning, Inc., 6.500%, 12/01/2016		805,000		712,355
Owens Corning, Inc., 7.000%, 12/01/2036		1,205,000		968,671
Ply Gem Industries, Inc., 9.000%, 2/15/2012(b)		250,000		136,250
USG Corp., 6.300%, 11/15/2016		1,680,000		1,268,400

				3,085,676

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Fixed Income Fund – continued


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Chemicals – 0.9%
Borden, Inc., 7.875%, 2/15/2023	$	5,240,000	$	2,410,400
Borden, Inc., 8.375%, 4/15/2016		55,000		18,700
Borden, Inc., 9.200%, 3/15/2021		905,000		452,500
ICI Wilmington, Inc., 5.625%, 12/01/2013		115,000		117,126
Lubrizol Corp., 5.500%, 10/01/2014		365,000		353,955
Lubrizol Corp., 6.500%, 10/01/2034		1,170,000		1,051,687
Methanex Corp., 6.000%, 8/15/2015		1,565,000		1,376,637

				5,781,005

Construction Machinery – 0.2%
Toro Co., 6.625%, 5/01/2037		965,000		1,016,855

Distributors – 0.1%
ONEOK, Inc., 6.000%, 6/15/2035		1,000,000		713,739

Diversified Manufacturing – 0.1%
General Electric Co., 5.000%, 2/01/2013		500,000		460,509

Electric – 4.1%
AES Corp. (The), 7.750%, 3/01/2014		730,000		678,900
Bruce Mansfield Unit, 6.850%, 6/01/2034(e)		4,255,000		4,243,086
Duke Energy Carolinas, 4.200%, 10/01/2008		85,000		85,000
Dynegy Holdings, Inc., 7.125%, 5/15/2018		380,000		286,900
Dynegy Holdings, Inc., 7.625%, 10/15/2026		810,000		591,300
Empresa Nacional de Electricidad SA (Endesa-Chile), 7.875%, 2/01/2027		1,589,000		1,664,144
Enersis SA, 7.375%, 1/15/2014		275,000		277,687
Enersis SA, 7.400%, 12/01/2016		4,000,000		4,042,040
Mackinaw Power LLC, 6.296%, 10/31/2023, 144A		4,046,326		4,036,655
NGC Corporation Capital Trust I, Series B, 8.316%, 6/01/2027(b)		695,000		517,775
Nisource Finance Corp., 6.400%, 3/15/2018		2,855,000		2,558,620
Power Receivables Finance LLC, 6.290%, 1/01/2012, 144A		791,857		819,350
Quezon Power Philippines Co., 8.860%, 6/15/2017		1,374,100		1,367,229
TXU Corp., Series P, 5.550%, 11/15/2014		765,000		570,887
TXU Corp., Series Q, 6.500%, 11/15/2024		1,515,000		964,869
TXU Corp., Series R, 6.550%, 11/15/2034		1,275,000		783,415
White Pine Hydro LLC, 6.310%, 7/10/2017(e)		450,000		431,974
White Pine Hydro LLC, 6.960%, 7/10/2037(e)		670,000		646,707
White Pine Hydro Portfolio LLC, 7.260%, 7/20/2015(e)		1,280,000		1,233,760

				25,800,298

Entertainment – 1.4%
Six Flags, Inc., 9.625%, 6/01/2014(b)		100,000		56,000
Time Warner, Inc., 6.500%, 11/15/2036		910,000		691,062
Time Warner, Inc., 6.625%, 5/15/2029		2,065,000		1,649,357
Time Warner, Inc., 6.950%, 1/15/2028		875,000		729,505
Time Warner, Inc., 7.625%, 4/15/2031		730,000		633,903
Time Warner, Inc., 7.700%, 5/01/2032		1,155,000		1,009,170
Viacom, Inc., Class B, 6.875%, 4/30/2036		4,880,000		3,912,198

				8,681,195

Food & Beverage – 0.3%
Corn Products International, Inc., 6.625%, 4/15/2037		1,540,000		1,601,679


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Food & Beverage – continued
Dole Food Co., Inc., 8.625%, 5/01/2009		$	165,000	$	157,575
Sara Lee Corp., 6.125%, 11/01/2032			295,000		261,402

					2,020,656

Foreign Local Governments – 4.4%
Province of Alberta, 5.930%, 9/16/2016	CAD		913,654		930,042
Province of British Columbia, Zero Coupon Bond, 8/23/2013	CAD		11,700,000		9,092,414
Province of Ontario, 5.700%, 12/01/2008	CAD		18,145,000		17,146,578

					27,169,034

Government Owned – No Guarantee – 0.2%
DP World Ltd., 6.850%, 7/02/2037, 144A			1,500,000		1,110,540

Healthcare – 2.7%
Boston Scientific Corp., 5.450%, 6/15/2014			290,000		271,150
Boston Scientific Corp., 6.400%, 6/15/2016			860,000		817,000
Boston Scientific Corp., 7.000%, 11/15/2035			860,000		765,400
HCA, Inc., 5.750%, 3/15/2014			455,000		354,900
HCA, Inc., 6.250%, 2/15/2013			2,345,000		1,958,075
HCA, Inc., 6.375%, 1/15/2015			410,000		322,875
HCA, Inc., 6.500%, 2/15/2016			610,000		483,425
HCA, Inc., 6.750%, 7/15/2013			115,000		96,600
HCA, Inc., 7.050%, 12/01/2027			3,545,000		2,393,903
HCA, Inc., 7.190%, 11/15/2015			560,000		447,066
HCA, Inc., 7.500%, 12/15/2023			840,000		615,342
HCA, Inc., 7.500%, 11/06/2033			1,440,000		1,022,400
HCA, Inc., 7.690%, 6/15/2025			2,660,000		1,977,018
HCA, Inc., 8.360%, 4/15/2024			1,775,000		1,375,767
HCA, Inc., MTN, 7.580%, 9/15/2025			2,930,000		2,158,619
HCA, Inc., MTN, 7.750%, 7/15/2036			430,000		305,257
Owens & Minor, Inc., 6.350%, 4/15/2016(e)			320,000		311,594
Tenet Healthcare Corp., 6.500%, 6/01/2012			105,000		97,125
Tenet Healthcare Corp., 6.875%, 11/15/2031			1,075,000		731,000
Tenet Healthcare Corp., 7.375%, 2/01/2013(b)			85,000		77,350

					16,581,866

Home Construction – 1.2%
K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016			115,000		66,125
K. Hovnanian Enterprises, Inc., 6.375%, 12/15/2014			155,000		89,900
K. Hovnanian Enterprises, Inc., 6.500%, 1/15/2014			115,000		67,850
Lennar Corp., 7.625%, 3/01/2009			470,000		453,550
Lennar Corp., Series B, 5.600%, 5/31/2015			1,700,000		1,105,000
Pulte Homes, Inc., 5.200%, 2/15/2015			1,305,000		1,044,000
Pulte Homes, Inc., 6.000%, 2/15/2035			3,920,000		2,802,800
Pulte Homes, Inc., 6.375%, 5/15/2033			1,960,000		1,430,800
Toll Brothers Finance Corp., 5.150%, 5/15/2015			565,000		477,829

					7,537,854

Independent Energy – 2.3%
Anadarko Petroleum Corp., 5.950%, 9/15/2016			3,495,000		3,212,307
Anadarko Petroleum Corp., 6.450%, 9/15/2036			2,580,000		2,022,844
Chesapeake Energy Corp., 6.500%, 8/15/2017			380,000		332,500

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Fixed Income Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Independent Energy – continued
Chesapeake Energy Corp., 6.875%, 1/15/2016		$	200,000	$	182,500
Chesapeake Energy Corp., 6.875%, 11/15/2020			900,000		769,500
Connacher Oil and Gas Ltd., 10.250%, 12/15/2015, 144A			792,000		760,320
Pioneer Natural Resources Co., 5.875%, 7/15/2016			435,000		374,770
Pioneer Natural Resources Co., 7.200%, 1/15/2028			1,465,000		1,261,271
Questar Market Resources, Inc., 6.800%, 4/01/2018			3,820,000		3,851,698
Talisman Energy, Inc., 5.850%, 2/01/2037			550,000		412,879
Talisman Energy, Inc., 6.250%, 2/01/2038			1,485,000		1,153,368
XTO Energy, Inc., 6.100%, 4/01/2036			155,000		128,342

					14,462,299

Industrial Other – 0.1%
Ranhill Labuan Ltd., 12.500%, 10/26/2011, 144A			1,575,000		756,000

Integrated Energy – 0.2%
PF Export Receivables Master Trust, 6.436%, 6/01/2015, 144A			1,361,705		1,402,556


Life Insurance – 1.3%
ASIF Global Financing XXVII, 2.380%, 2/26/2009, 144A	SGD		17,000,000		6,011,553
Hartford Life Insurance Co., 7.800%, 9/15/2011(c)			500,000		487,284
John Hancock Insurance Co., 7.450%, 4/15/2009(c)			500,000		485,655
Principal Life Income Funding Trust, 5.000%, 10/15/2014			500,000		478,268
Protective Life Secured Trust, 7.330%, 9/10/2014(c)			1,000,000		896,460

					8,359,220

Local Authorities – 1.3%
Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011	AUD		2,150,000		1,708,243
Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(e)			7,910,000		6,125,900

					7,834,143

Lodging – 0.0%
Host Marriott LP, Series O, 6.375%, 3/15/2015			150,000		121,875

Media Cable – 3.6%
Comcast Corp., 5.650%, 6/15/2035			2,660,000		1,977,266
Comcast Corp., 6.450%, 3/15/2037			2,645,000		2,133,359
Comcast Corp., 6.500%, 11/15/2035			3,240,000		2,705,154
Comcast Corp., 6.950%, 8/15/2037			7,695,000		6,563,473
CSC Holdings, Inc., 6.750%, 4/15/2012			200,000		183,250
CSC Holdings, Inc., 7.625%, 4/01/2011			50,000		48,000
CSC Holdings, Inc., 7.875%, 2/15/2018			170,000		149,600
Rogers Cable, Inc., 5.500%, 3/15/2014			150,000		138,569
TCI Communications, Inc., 7.875%, 2/15/2026			550,000		529,587
Time Warner Cable, Inc., 6.550%, 5/01/2037			1,500,000		1,214,832
Time Warner Cable, Inc., 6.750%, 7/01/2018			6,500,000		6,070,545
Virgin Media Finance PLC, 9.125%, 8/15/2016			400,000		335,000
Virgin Media Finance PLC, 9.750%, 4/15/2014	GBP		250,000		342,236

					22,390,871


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Media Non-Cable – 0.5%
Clear Channel Communications, Inc., 4.250%, 5/15/2009		$	85,000	$	79,900
Clear Channel Communications, Inc., 4.900%, 5/15/2015			785,000		233,537
Clear Channel Communications, Inc., 5.500%, 12/15/2016			50,000		14,500
News America, Inc., 6.150%, 3/01/2037			2,630,000		2,144,310
News America, Inc., 6.200%, 12/15/2034			795,000		633,845

					3,106,092

Mortgage Related – 0.0%
GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, 4.751%, 7/10/2039			95,000		85,233

Non-Captive Consumer – 1.9%
Countrywide Home Loans, Inc., Series L, MTN, 4.000%, 3/22/2011			84,000		72,269
HSBC Finance Corp., 6.500%, 11/15/2008			60,000		59,787
Residential Capital LLC, 8.500%, 6/01/2012			180,000		36,000
Residential Capital LLC, 8.500%, 4/17/2013			6,335,000		1,267,000
Residential Capital LLC, 8.875%, 6/30/2015			730,000		146,000
Residential Capital LLC, 9.625%, 5/15/2015, 144A			884,000		212,160
SLM Corp., 6.000%, 12/15/2043			31,725(†††)		327,640
SLM Corp., Series A, MTN, 4.000%, 1/15/2010			930,000		730,050
SLM Corp., Series A, MTN, 5.000%, 10/01/2013			1,600,000		992,000
SLM Corp., Series A, MTN, 5.000%, 4/15/2015			200,000		120,000
SLM Corp., Series A, MTN, 5.375%, 1/15/2013			2,920,000		1,912,600
SLM Corp., Series A, MTN, 5.375%, 5/15/2014			235,000		145,700
SLM Corp., Series A, MTN, 5.400%, 10/25/2011(b)			405,000		283,500
SLM Corp., Series A, MTN, 8.450%, 6/15/2018			7,511,000		5,107,480
SLM Corp., Series B, 7.750%, 9/15/2009(c)			500,000		429,490
SLM Corp., MTN, 5.125%, 8/27/2012			420,000		273,000

					12,114,676

Non-Captive Diversified – 3.6%
CIT Group Funding Co. of Canada, 5.200%, 6/01/2015			845,000		414,970
CIT Group, Inc., 4.750%, 12/15/2010			135,000		87,918
CIT Group, Inc., 5.050%, 9/15/2014			500,000		169,569
CIT Group, Inc., 5.125%, 9/30/2014			2,520,000		1,242,756
CIT Group, Inc., 5.400%, 2/13/2012			30,000		17,246
CIT Group, Inc., 5.400%, 1/30/2016			355,000		171,820
CIT Group, Inc., 5.500%, 12/01/2014	GBP		800,000		709,951
CIT Group, Inc., 5.600%, 4/27/2011			625,000		402,519
CIT Group, Inc., 5.650%, 2/13/2017			1,005,000		490,408
CIT Group, Inc., 5.800%, 10/01/2036			1,855,000		848,429
CIT Group, Inc., 5.850%, 9/15/2016			30,000		14,550
CIT Group, Inc., Series A, GMTN, 6.000%, 4/01/2036			875,000		358,750
CIT Group, Inc., EMTN, 3.800%, 11/14/2012	EUR		750,000		569,805
CIT Group, Inc., EMTN, 4.650%, 9/19/2016	EUR		1,150,000		793,454
CIT Group, Inc., EMTN, 5.000%, 5/13/2014	EUR		550,000		396,070
CIT Group, Inc., EMTN, 5.500%, 12/20/2016	GBP		600,000		532,025
CIT Group, Inc., GMTN, 4.250%, 2/01/2010			85,000		56,023
CIT Group, Inc., GMTN, 4.250%, 9/22/2011	EUR		400,000		336,344

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Fixed Income Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Non-Captive Diversified – continued
CIT Group, Inc., GMTN, 5.000%, 2/13/2014		$	1,585,000	$	896,585
CIT Group, Inc., GMTN, 5.000%, 2/01/2015			870,000		430,038
CIT Group, Inc., MTN, 4.250%, 3/17/2015	EUR		1,000,000		690,056
General Electric Capital Corp., 6.500%, 9/28/2015	NZD		9,210,000		5,490,522
General Electric Capital Corp., EMTN, 6.750%, 9/26/2016	NZD		1,345,000		800,487
GMAC LLC, 4.750%, 9/14/2009	EUR		960,000		864,953
GMAC LLC, 5.625%, 5/15/2009(b)			800,000		571,618
GMAC LLC, 6.000%, 12/15/2011			2,062,000		916,846
GMAC LLC, 6.875%, 8/28/2012			355,000		141,105
GMAC LLC, 7.000%, 2/01/2012			400,000		163,044
GMAC LLC, 8.000%, 11/01/2031			295,000		111,297
GMAC LLC, EMTN, 5.375%, 6/06/2011	EUR		2,565,000		1,516,623
GMAC LLC, EMTN, 5.750%, 9/27/2010	EUR		350,000		221,729
iStar Financial, Inc., 5.500%, 6/15/2012			85,000		43,350
iStar Financial, Inc., 5.650%, 9/15/2011			135,000		70,200
iStar Financial, Inc., 5.875%, 3/15/2016			30,000		14,700
iStar Financial, Inc., 6.050%, 4/15/2015			30,000		14,700
iStar Financial, Inc., 8.625%, 6/01/2013			2,495,000		1,222,550
iStar Financial, Inc., Series B, 5.700%, 3/01/2014			95,000		46,550
iStar Financial, Inc., Series B, 5.950%, 10/15/2013			1,245,000		647,400

					22,486,960

Oil Field Services – 0.1%
North American Energy Partners, Inc., 8.750%, 12/01/2011			1,000,000		920,000

Packaging – 0.3%
Owens-Illinois, Inc., 7.800%, 5/15/2018			2,000,000		1,940,000

Paper – 1.9%
Abitibi-Consolidated, Inc., 7.500%, 4/01/2028			650,000		149,500
Georgia-Pacific LLC, 7.250%, 6/01/2028			2,000,000		1,580,000
Georgia-Pacific LLC, 7.375%, 12/01/2025			2,868,000		2,315,910
Georgia-Pacific LLC, 7.750%, 11/15/2029			6,005,000		4,954,125
Georgia-Pacific LLC, 8.000%, 1/15/2024			132,000		116,160
International Paper Co., 4.250%, 1/15/2009			700,000		695,679
Jefferson Smurfit Corp., 7.500%, 6/01/2013			335,000		271,350
Westvaco Corp., 7.950%, 2/15/2031			1,045,000		1,000,393
Westvaco Corp., 8.200%, 1/15/2030			1,080,000		1,013,693

					12,096,810

Pharmaceuticals – 0.7%
Elan Financial PLC, 7.750%, 11/15/2011			4,235,000		3,832,675
Elan Financial PLC, 8.875%, 12/01/2013			335,000		281,400

					4,114,075

Pipelines – 1.6%
DCP Midstream LP, 6.450%, 11/03/2036, 144A			1,740,000		1,391,843
El Paso Corp., 6.950%, 6/01/2028			925,000		730,375
El Paso Corp., 7.800%, 8/01/2031			250,000		210,629
Enterprise Products Operating LP, 6.300%, 9/15/2017			1,550,000		1,445,510
Kinder Morgan, Inc., 6.500%, 9/01/2012			90,000		84,825


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Pipelines – continued
Kinder Morgan, Inc., Senior Note, 5.150%, 3/01/2015		$	305,000	$	258,488
Plains All American Pipeline LP, 6.125%, 1/15/2017			1,785,000		1,622,015
Plains All American Pipeline LP, 6.650%, 1/15/2037			3,850,000		3,153,631
Williams Cos., Inc., 7.500%, 1/15/2031			1,000,000		909,980

					9,807,296

Property & Casualty Insurance – 1.3%
Allstate Corp., 5.950%, 4/01/2036			540,000		440,208
Axis Capital Holdings Ltd., 5.750%, 12/01/2014			80,000		73,498
Marsh & McLennan Cos., Inc., 5.375%, 7/15/2014			1,190,000		1,101,990
Marsh & McLennan Cos., Inc., 5.750%, 9/15/2015			775,000		726,477
Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033			180,000		150,766
MBIA Insurance Corp., (fixed rate to 1/15/13, variable rate thereafter), 14.000%, 1/15/2033, 144A			1,545,000		818,850
Travelers Cos., Inc. (The), 6.250%, 6/15/2037			1,925,000		1,668,852
Travelers Property Casualty Corp., 6.375%, 3/15/2033			1,400,000		1,228,863
White Mountains RE Group, 6.375%, 3/20/2017, 144A			2,140,000		1,889,979

					8,099,483

Railroads – 0.2%
CSX Corp., 6.000%, 10/01/2036			1,575,000		1,196,978
Missouri Pacific Railroad Co., 5.000%, 1/01/2045(e)			500,000		300,000

					1,496,978

REITs – 0.8%
Camden Property Trust, 5.700%, 5/15/2017			1,495,000		1,321,547
Colonial Realty LP, 4.750%, 2/01/2010			15,000		14,499
Duke Realty LP, 5.950%, 2/15/2017			210,000		187,983
ERP Operating LP, 5.125%, 3/15/2016			70,000		58,632
Highwoods Properties, Inc., 5.850%, 3/15/2017			2,560,000		2,053,512
Highwoods Properties, Inc., 7.500%, 4/15/2018			475,000		420,950
Prologis, 5.625%, 11/15/2015			100,000		87,429
Prologis, 5.750%, 4/01/2016			80,000		69,708
Realty Income Corp., 6.750%, 8/15/2019			1,000,000		902,194

					5,116,454

Restaurants – 0.1%
McDonald’s Corp., 3.628%, 10/10/2010	SGD		1,000,000		712,192

Retailers – 1.5%
Dillard’s, Inc., 7.750%, 7/15/2026			1,025,000		584,250
Foot Locker, Inc., 8.500%, 1/15/2022			1,100,000		995,500
Home Depot, Inc., 5.875%, 12/16/2036			4,283,000		3,010,833
J.C. Penney Corp., Inc., 6.375%, 10/15/2036			2,110,000		1,604,875
J.C. Penney Corp., Inc., 7.125%, 11/15/2023(b)			575,000		524,195
Toys R Us, Inc., 7.375%, 10/15/2018			3,240,000		2,106,000
Toys R Us, Inc., 7.875%, 4/15/2013			750,000		585,000

					9,410,653

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Fixed Income Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Sovereigns – 14.3%
Canadian Government, 2.750%, 12/01/2010	CAD	12,760,000		$	11,946,262
Canadian Government, 3.750%, 6/01/2012	CAD	14,255,000			13,673,950
Canadian Government, 4.250%, 9/01/2009	CAD	16,520,000			15,724,929
Canadian Government, 5.250%, 6/01/2012	CAD	22,355,000			22,532,496
Indonesia Treasury Bond, Series FR43, 10.250%, 7/15/2022	IDR	2,915,000,000			249,530
Indonesia Treasury Bond, Series ZC3, Zero Coupon Bond, 11/20/2012	IDR	7,590,000,000			485,721
Mexican Fixed Rate Bonds, Series M-10, 8.000%, 12/17/2015	MXN	125,000	(††)		1,117,474
Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023	MXN	305,000	(††)		2,676,632
Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012	MXN	1,015,000	(††)		9,498,577
New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010	AUD	3,240,000			2,620,317
New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012	AUD	1,675,000			1,328,159
Republic of Brazil, 10.250%, 1/10/2028	BRL	14,885,000			6,871,865
Republic of Brazil, 12.500%, 1/05/2022	BRL	625,000			336,657

					89,062,569

Supermarkets – 1.5%
Albertson’s, Inc., 7.450%, 8/01/2029		6,515,000			5,794,630
Albertson’s, Inc., 7.750%, 6/15/2026		1,470,000			1,351,177
Albertson’s, Inc., 8.000%, 5/01/2031		565,000			523,616
Albertson’s, Inc., 8.700%, 5/01/2030		5,000			4,952
Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		1,745,000			1,413,792
American Stores Co., 8.000%, 6/01/2026		25,000			23,435

					9,111,602

Supranational – 5.5%
Eurofima, EMTN, 11.000%, 2/05/2010	ISK	20,000,000			189,399
European Investment Bank, 4.600%, 1/30/2037, 144A	CAD	6,000,000			5,133,982
Inter-American Development Bank, EMTN, Zero Coupon Bond, 5/11/2009	BRL	30,000,000			14,031,215
Inter-American Development Bank, EMTN, 6.000%, 12/15/2017	NZD	19,735,000			12,761,161
International Bank for Reconstruction & Development, 9.500%, 5/27/2010	ISK	210,000,000			1,975,237
Nordic Investment Bank, EMTN, 11.250%, 4/16/2009	ISK	4,800,000			45,424

					34,136,418

Technology – 2.3%
Agilent Technologies, Inc., 6.500%, 11/01/2017		2,365,000			2,155,974
Amkor Technology, Inc., 7.125%, 3/15/2011		725,000			652,500
Amkor Technology, Inc., 7.750%, 5/15/2013		470,000			401,850
Arrow Electronics, Inc., 6.875%, 7/01/2013		2,850,000			2,897,287
Avnet, Inc., 6.000%, 9/01/2015		1,645,000			1,584,816
Avnet, Inc., 6.625%, 9/15/2016		130,000			126,608
Corning, Inc., 6.200%, 3/15/2016		250,000			241,380
Corning, Inc., 6.850%, 3/01/2029		450,000			397,495


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Technology – continued
Corning, Inc., 7.250%, 8/15/2036		$	1,175,000	$	1,041,601
Lucent Technologies, Inc., 6.450%, 3/15/2029			250,000		152,500
Motorola, Inc., 5.220%, 10/01/2097			515,000		287,644
Motorola, Inc., 5.800%, 10/15/2008			500,000		500,245
Motorola, Inc., 6.500%, 11/15/2028(b)			815,000		609,048
Motorola, Inc., 6.625%, 11/15/2037			995,000		725,300
Nortel Networks Ltd., 6.875%, 9/01/2023			1,325,000		530,000
Nortel Networks Ltd., 10.125%, 7/15/2013			1,000,000		637,500
Northern Telecom Capital Corp., 7.875%, 6/15/2026			150,000		66,000
Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A			1,158,000		1,225,104

					14,232,852

Textile – 0.3%
Kellwood Co., 7.625%, 10/15/2017(e)			3,250,000		1,787,500

Tobacco – 0.6%
Reynolds American, Inc., 6.750%, 6/15/2017			3,320,000		3,102,241
Reynolds American, Inc., 7.250%, 6/15/2037			810,000		775,136

					3,877,377

Transportation Services – 0.8%
APL Ltd., 8.000%, 1/15/2024(e)			2,500,000		1,875,000
Atlas Air, Inc., Series 1999-1B, 7.630%, 7/02/2016(f)			1,326,184		1,299,660
Atlas Air, Inc., Series 2000-1, Class B, 9.057%, 7/02/2017(f)			394,351		410,125
Atlas Air, Inc., Series B, 7.680%, 1/02/2014(f)			1,500,291		1,500,291

					5,085,076

Wireless – 1.4%
ALLTEL Corp., 6.800%, 5/01/2029			150,000		136,125
ALLTEL Corp., 7.875%, 7/01/2032			1,395,000		1,384,538
Nextel Communications, Inc., Series D, 7.375%, 8/01/2015			4,315,000		2,847,900
Nextel Communications, Inc., Series E, 6.875%, 10/31/2013			630,000		428,400
Nextel Communications, Inc., Series F, 5.950%, 3/15/2014			1,565,000		1,048,550
Sprint Capital Corp., 6.875%, 11/15/2028			1,827,000		1,224,090
Sprint Capital Corp., 6.900%, 5/01/2019			1,150,000		891,250
Sprint Nextel Corp., 6.000%, 12/01/2016			898,000		691,460

					8,652,313

Wirelines – 5.1%
AT&T Corp., 6.500%, 3/15/2029			355,000		297,199
AT&T, Inc., 6.500%, 9/01/2037			6,600,000		5,614,488
Bell Canada, 6.550%, 5/01/2029, 144A	CAD		195,000		139,299
Bell Canada, Series M-17, 6.100%, 3/16/2035	CAD		600,000		410,379
Bell Canada, MTN, 5.000%, 2/15/2017	CAD		155,000		115,034
Bell Canada, MTN, 7.300%, 2/23/2032	CAD		690,000		532,932
Embarq Corp., 7.082%, 6/01/2016			235,000		190,453
Embarq Corp., 7.995%, 6/01/2036			200,000		143,022
Hawaiian Telcom Communications, Inc., Series B, 12.500%, 5/01/2015(b)			75,000		10,500

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Fixed Income Fund – continued


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Wirelines – continued
Level 3 Financing, Inc., 9.250%, 11/01/2014	$	500,000	$	377,500
Qwest Capital Funding, Inc., 6.500%, 11/15/2018		3,305,000		2,404,388
Qwest Capital Funding, Inc., 6.875%, 7/15/2028		7,575,000		5,264,625
Qwest Capital Funding, Inc., 7.625%, 8/03/2021		350,000		266,000
Qwest Capital Funding, Inc., 7.750%, 2/15/2031		775,000		565,750
Qwest Corp., 6.875%, 9/15/2033		420,000		282,450
Telecom Italia Capital, 6.000%, 9/30/2034		1,330,000		931,825
Telecom Italia Capital, 6.375%, 11/15/2033		1,320,000		962,016
Telefonica Emisiones SAU, 7.045%, 6/20/2036		11,330,000		10,247,418
Verizon Communications, 5.850%, 9/15/2035		3,975,000		3,108,172

				31,863,450


TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $572,945,819)				503,570,603


CONVERTIBLE BONDS – 3.7%

Healthcare – 0.1%
Affymetrix, Inc., 3.500%, 1/15/2038		604,000		422,800

Industrial Other – 0.2%
Incyte Corp., 3.500%, 2/15/2011		1,290,000		1,181,963

Media Non-Cable – 0.1%
Liberty Media LLC, 3.500%, 1/15/2031		455,783		201,684
Sinclair Broadcast Group, Inc., (Step to 2.000% on 1/15/2011), 4.875%, 7/15/2018(g)		500,000		453,750

				655,434

Non-Captive Consumer – 0.0%
Countrywide Financial Corp., Series A, Zero Coupon Bond, 4/15/2037(b)		78,000		76,440
Countrywide Financial Corp., Series B, 0.554%, 5/15/2037(c)		213,000		193,830

				270,270

Non-Captive Diversified – 0.0%
iStar Financial, Inc., 3.291%, 10/01/2012(c)		380,000		203,300

Pharmaceuticals – 1.1%
Epix Pharmaceuticals, Inc., 3.000%, 6/15/2024		250,000		125,000
Human Genome Sciences, Inc., 2.250%, 8/15/2012		100,000		66,750
Nektar Therapeutics, 3.250%, 9/28/2012		1,065,000		536,494
Valeant Pharmaceuticals International, 3.000%, 8/16/2010		1,035,000		978,075
Valeant Pharmaceuticals International, 4.000%, 11/15/2013		1,095,000		1,025,194
Vertex Pharmaceuticals, Inc., 4.750%, 2/15/2013		2,770,000		4,179,237

				6,910,750

Pipelines – 0.3%
CenterPoint Energy Resources Corp., 6.000%, 3/15/2012		1,676,000		1,575,440


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

REITs – 0.2%
Host Hotels & Resorts, Inc., 2.625%, 4/15/2027, 144A	$	1,430,000	$	1,108,250

Technology – 0.8%
Avnet, Inc., 2.000%, 3/15/2034		1,270,000		1,265,237
Kulicke & Soffa Industries, Inc., 0.500%, 11/30/2008		425,000		411,188
Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		3,585,000		2,451,244
Kulicke & Soffa Industries, Inc., 1.000%, 6/30/2010		380,000		297,825
Maxtor Corp., 5.750%, 3/01/2012(e)		408,000		375,360
Nortel Networks Corp., 2.125%, 4/15/2014		248,000		118,730
Richardson Electronics Ltd., 7.750%, 12/15/2011		263,000		197,250

				5,116,834

Textile – 0.0%
Dixie Yarns, Inc., 7.000%, 5/15/2012		74,000		65,860

Wirelines – 0.9%
Level 3 Communications, Inc., 2.875%, 7/15/2010		3,870,000		3,042,787
Level 3 Communications, Inc., 6.000%, 9/15/2009		2,685,000		2,523,900
Level 3 Communications, Inc., 6.000%, 3/15/2010(b)		125,000		109,375

				5,676,062


TOTAL CONVERTIBLE BONDS
(Identified Cost $23,664,879)				23,186,963


MUNICIPALS – 0.4%

Michigan – 0.4%
Michigan Tobacco Settlement Finance Authority, 7.309%, 6/01/2034(e)		2,480,000		2,135,776


TOTAL MUNICIPALS
(Identified Cost $2,479,855)				2,135,776


TOTAL BONDS AND NOTES
(Identified Cost $599,090,553)				528,893,342


BANK LOANS – 0.3%

Consumer Products – 0.0%
Mega Bloks, Inc., Term Loan B, 8.750%, 7/26/2012(h)		334,139		260,628

Food & Beverage – 0.0%
Dole Food Co., Inc., LOC, 4.788%, 4/12/2013(h)		17,547		15,389
Dole Food Co., Inc., Term Loan, 4.738%, 4/12/2013(h)		11,779		10,330
Dole Food Co., Inc., Tranche C Term Loan, 4.795%, 4/12/2013(h)		61,712		54,121

				79,840

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Fixed Income Fund – continued


	Principal Amount (‡)		Value (†)


BANK LOANS – continued

Media Non-Cable – 0.2%
Idearc, Inc., Term Loan B, 5.767%, 11/17/2014(h)	$	1,662,693	$	991,381
Tribune Co., Tranche X, 5.541%, 6/04/2009(h)		74,971		69,442

				1,060,823

Wirelines – 0.1%
Hawaiian Telcom Communications, Inc., Term Loan C, 6.262%, 6/01/2014(h)		475,000		326,734


TOTAL BANK LOANS
(Identified Cost $2,136,640)				1,728,025


	Shares

COMMON STOCKS – 1.0%

Communications Equipment – 0.5%
Corning, Inc.		205,167		3,208,812

Containers & Packaging – 0.2%
Owens-Illinois, Inc.(f)		35,353		1,039,378

Oil, Gas & Consumable Fuels – 0.3%
Chesapeake Energy Corp.(b)		54,259		1,945,728


TOTAL COMMON STOCKS
(Identified Cost $5,011,989)				6,193,918


PREFERRED STOCKS – 1.5%

CONVERTIBLE PREFERRED STOCKS – 1.0%

Automotive – 0.2%
Ford Motor Co., Capital Trust II, 6.500%(b)		79,845		1,229,613

Capital Markets – 0.1%
Newell Financial Trust I, 5.250%		25,075		966,955

Diversified Financial Services – 0.1%
Sovereign Capital Trust, 4.375%		30,343		696,372

Electric Utilities – 0.1%
AES Trust III, 6.750%(b)		10,000		383,500

Machinery – 0.1%
United Rentals Trust, 6.500%		30,199		664,378

Oil, Gas & Consumable Fuels – 0.1%
Chesapeake Energy Corp., 4.500%(b)		775		77,113
El Paso Energy Capital Trust I, 4.750%		20,200		672,912

				750,025

REITs – 0.0%
FelCor Lodging Trust, Inc., Series A, 7.800%		2,500		30,625

Semiconductors & Semiconductor Equipment – 0.3%
Lucent Technologies Capital Trust, 7.750%		3,715		1,726,175


TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified Cost $10,172,629)				6,447,643


	Shares	Value (†)


PREFERRED STOCKS – continued

NON-CONVERTIBLE PREFERRED STOCKS – 0.5%

Banking – 0.2%
Bank of America Corp., 7.250%	1,657	$	1,388,566

Capital Markets – 0.0%
Lehman Brothers Holdings Capital Trust I, 6.000%(d)	2,075		332
Lehman Brothers Holdings, Inc., 5.670%(d)	3,878		271
Lehman Brothers Holdings, Inc., 5.940%(d)	4,120		144
Lehman Brothers Holdings, Inc., 6.500%(d)	18,030		902
Lehman Brothers Holdings, Inc., 7.250%(d)(f)	2,025		2,025
Lehman Brothers Holdings, Inc., 7.950%(d)	18,522		1,111
Merrill Lynch & Co., Inc., 6.375%	5,000		68,450

			73,235

Electric Utilities – 0.1%
Entergy New Orleans, Inc., 4.360%	90		6,677
Entergy New Orleans, Inc., 4.750%	2,876		219,475
MDU Resources Group, Inc., 5.100%	307		30,738
Public Service Electric & Gas Co., 4.180%(b)	1,950		142,662
Union Electric Co., 4.500%	4,670		347,915
Xcel Energy, Inc., 4.110%(b)	100		7,824

			755,291

Thrifts & Mortgage Finance – 0.2%
Countrywide Capital IV, 6.750%	20,975		186,677
Federal Home Loan Mortgage Corp., 5.000%(f)(j)	4,150		7,470
Federal Home Loan Mortgage Corp., 5.790%(f)(j)	12,100		24,200
Federal Home Loan Mortgage Corp., 5.810%(f)(j)	4,250		7,438
Federal Home Loan Mortgage Corp., 6.000%(f)(j)	5,350		9,630
Federal Home Loan Mortgage Corp., 5.700%(f)(j)	6,550		12,249
Federal Home Loan Mortgage Corp., 6.420%(f)(j)	3,800		6,840
Federal Home Loan Mortgage Corp., 5.900%(f)(j)	9,400		11,750
Federal Home Loan Mortgage Corp., 5.570%(f)(j)	63,750		63,113
Federal Home Loan Mortgage Corp., 5.660%(f)(j)	18,900		23,625
Federal Home Loan Mortgage Corp., 6.550%(f)(j)	24,825		26,811
Federal Home Loan Mortgage Corp., 8.375%(b)(f)(j)	88,575		144,377
Federal National Mortgage Association, 5.810%(j)	2,400		8,640
Federal National Mortgage Association, 5.375%(j)	5,800		19,140
Federal National Mortgage Association, 5.125%(j)	2,900		10,150
Federal National Mortgage Association, 4.750%(j)	8,200		25,420
Federal National Mortgage Association, 6.750%(j)	3,750		6,750
Federal National Mortgage Association, 8.250%(b)(j)	119,675		260,891

			855,171


TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Identified Cost $10,636,250)			3,072,263


TOTAL PREFERRED STOCKS
(Identified Cost $20,808,879)			9,519,906

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Fixed Income Fund – continued


	Shares/Principal Amount (‡)		Value (†)


SHORT-TERM INVESTMENTS – 11.2%
State Street Navigator Securities Lending Prime Portfolio(i)		6,151,664	$	6,151,664
Repurchase Agreement with State Street Corp. dated 9/30/2008 at 1.300%, to be repurchased at $27,383 on 10/1/2008 collateralized by $30,000 Federal Home Loan Bank, 5.300% due 10/3/2012 valued at $30,782 including accrued interest (Note 2h of Notes to Financial Statements)	$	27,382		27,382
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $64,014,312 on 10/1/2008 collateralized by $65,295,000 Federal National Mortgage Association, 2.875% due 10/12/2010 valued at $65,295,000, including accrued interest (Note 2h of Notes to Financial Statements)		64,012,000		64,012,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $70,191,046)				70,191,046


TOTAL INVESTMENTS – 98.7%
(Identified Cost $697,239,107)(a)				616,526,237
Other Assets Less Liabilities—1.3%				7,959,580


NET ASSETS – 100.0%			$	624,485,817


(‡) Principal amount stated in U.S. dollars unless otherwise noted.
(†) See Note 2a of Notes to Financial Statements.
(††) Amount shown represents units. One unit represents a principal amount of 100.
(†††) Amount shown represents units. One unit represents a principal amount of 25.
(a) Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $699,043,212 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	16,482,433
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(98,999,408)

Net unrealized depreciation			$	(82,516,975)

(b)

All or a portion of this security was on loan to brokers at September 30, 2008.

(c)

Variable rate security. Rate as of September 30, 2008 is disclosed.

(d)

Issuer has filed for bankruptcy.

(e)

Illiquid security. At September 30, 2008, the value of these securities amounted to $19,466,657 or 3.1% of net assets.

(f)

Non-income producing security.

(g)

Step Bond: Coupon is a fixed rate for an initial period then resets at a specified date and rate.

(h)

Variable rate security. Rate shown represents the weighted average rate at September 30, 2008.

(i)

Represents investment of securities lending collateral.

(j)

Future dividend payments have been eliminated as the issuer has been placed in conservatorship.

144A

EMTN

Euro Medium Term Note

GMTN

Global Medium Term Note

LOC

Letter of Credit

MTN

Medium Term Note

REITs

Real Estate Investment Trusts

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Sovereigns	14.3	%
Wirelines	6.1
Supranational	5.5
Banking	5.2
Foreign Local Governments	4.4
Electric	4.1
Non-Captive Diversified	3.6
Media Cable	3.6
Technology	3.1
Healthcare	2.8
Independent Energy	2.3
Other Investments, less than 2% each	32.5
Short-Term Investments	11.2

Total Investments	98.7
Other assets less liabilities	1.3

Net Assets	100.0	%

CURRENCY EXPOSURE AT SEPTEMBER 30, 2008 AS A PERCENTAGE OF NET ASSETS (Unaudited)


United States Dollar	66.4	%
Canadian Dollar	15.6
Brazilian Real	4.5
New Zealand Dollar	3.1
Mexican Peso	2.1
Other, less than 2% each	7.0

Total Investments	98.7
Other assets less liabilities	1.3

Net Assets	100.0	%

See accompanying notes to financial statements.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Global Bond Fund


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – 93.9% of Net Assets

NON-CONVERTIBLE BONDS – 93.9%

Argentina – 0.3%
Transportadora de Gas del Sur SA, 7.875%, 5/14/2017, 144A		$	8,050,000	$	5,715,500

Austria – 2.2%
Oesterreichische Kontrollbank AG, 1.800%, 3/22/2010(b)	JPY		4,647,000,000		44,235,875
Sappi Papier Holding AG, 7.500%, 6/15/2032, 144A			7,350,000		5,190,739

					49,426,614

Belgium – 1.7%
Kingdom of Belgium, 5.500%, 9/28/2017	EUR		25,555,000		38,490,364

Bermuda – 0.4%
Noble Group Ltd., 8.500%, 5/30/2013, 144A			5,500,000		4,537,500
White Mountains RE Group, 6.375%, 3/20/2017, 144A			5,000,000		4,415,840

					8,953,340

Brazil – 0.3%
ISA Capital Do Brasil SA, 7.875%, 1/30/2012, 144A			1,100,000		1,056,000
Marfrig Overseas Ltd., 9.625%, 11/16/2016, 144A			1,170,000		936,000
Republic of Brazil, 10.250%, 1/10/2028	BRL		9,750,000		4,501,222

					6,493,222

Canada – 2.2%
Bell Aliant Regional Communications, 5.410%, 9/26/2016	CAD		4,280,000		3,445,073
Bell Canada, Series M-17, 6.100%, 3/16/2035	CAD		3,090,000		2,113,453
Bell Canada, MTN, 5.000%, 2/15/2017	CAD		4,035,000		2,994,601
Bell Canada, MTN, 6.550%, 5/01/2029, 144A	CAD		160,000		114,297
Bell Canada, MTN, 7.300%, 2/23/2032	CAD		385,000		297,361
Bombardier, Inc., 7.250%, 11/15/2016, 144A	EUR		1,000,000		1,267,020
Canadian Government, 4.250%, 9/01/2009	CAD		600,000		571,123
Canadian Government, 4.500%, 6/01/2015	CAD		3,813,000		3,802,216
Canadian Pacific Railway Co., 5.750%, 3/15/2033			810,000		628,555
Canadian Pacific Railway Co., 5.950%, 5/15/2037			1,745,000		1,428,398
Export Development Canada, 3.500%, 5/16/2013(b)			15,500,000		15,609,275
Kinder Morgan Finance, 5.700%, 1/05/2016			5,705,000		4,906,300
Province of Quebec, 1.600%, 5/09/2013	JPY		766,000,000		7,312,597
Shaw Communications, Inc., 5.700%, 3/02/2017	CAD		4,215,000		3,545,907

					48,036,176

Cayman Islands – 0.8%
Embraer Overseas Ltd., 6.375%, 1/24/2017			5,580,000		5,161,500
LPG International, Inc., 7.250%, 12/20/2015			3,010,000		2,885,988
Odebrecht Finance Ltd., 7.500%, 10/18/2017, 144A			4,650,000		4,231,500
Vale Overseas Ltd., 6.875%, 11/21/2036			6,578,000		5,855,124

					18,134,112


		Principal Amount (‡)	Value (†)


BONDS AND NOTES – continued

Colombia – 0.3%
Republic of Colombia, 9.850%, 6/28/2027(b)	COP	3,195,000,000	$	1,301,616
Republic of Colombia, 11.750%, 3/01/2010	COP	3,090,000,000		1,427,804
Republic of Colombia, 12.000%, 10/22/2015	COP	9,545,000,000		4,565,449

				7,294,869

France – 7.4%
Alcatel-Lucent, EMTN, 6.375%, 4/07/2014	EUR	6,050,000		6,856,340
BNP Paribas, (fixed rate to 4/12/2016, variable rate thereafter), 4.730%, 4/29/2049	EUR	3,100,000		3,008,666
France Telecom SA, EMTN, 3.625%, 10/14/2015	EUR	3,085,000		3,704,625
France Telecom SA, EMTN, 4.750%, 2/21/2017	EUR	4,010,000		4,979,193
Government of France, 5.000%, 10/25/2016	EUR	63,070,000		93,260,542
Lafarge SA, EMTN, 4.750%, 3/23/2020	EUR	3,335,000		3,550,370
Lafarge SA, EMTN, 5.375%, 6/26/2017	EUR	2,950,000		3,464,325
PPR SA, EMTN, 4.000%, 1/29/2013	EUR	3,235,000		4,153,430
Veolia Environnement, 6.000%, 6/01/2018(b)		15,465,000		14,829,388
Veolia Environnement, EMTN, 4.000%, 2/12/2016	EUR	2,255,000		2,811,337
Veolia Environnement, EMTN, 5.125%, 5/24/2022	EUR	3,970,000		4,897,986
Vivendi, 3.875%, 2/15/2012	EUR	2,405,000		3,189,623
Wendel, 4.375%, 8/09/2017	EUR	4,550,000		4,155,467
Wendel, 4.875%, 5/26/2016	EUR	10,150,000		10,154,244
WPP Finance SA, 5.250%, 1/30/2015	EUR	2,400,000		3,074,339

				166,089,875

Germany – 13.6%
Bertelsmann AG, EMTN, 3.625%, 10/06/2015	EUR	9,620,000		11,324,960
Bundesrepublik Deutschland, Series 06, 3.750%, 1/04/2017	EUR	38,060,000		52,679,651
Bundesrepublik Deutschland, Series 97, 6.500%, 7/04/2027	EUR	5,040,000		8,728,300
Kreditanstalt fuer Wiederaufbau, 1.350%, 1/20/2014	JPY	1,494,000,000		14,091,473
Kreditanstalt fuer Wiederaufbau, 1.750%, 3/23/2010	JPY	1,100,000,000		10,474,476
Kreditanstalt fuer Wiederaufbau, 2.500%, 10/11/2010	EUR	15,925,000		21,739,268
Kreditanstalt fuer Wiederaufbau, 2.600%, 6/20/2037	JPY	1,140,000,000		10,836,844
Kreditanstalt fuer Wiederaufbau, Series INTL, 1.850%, 9/20/2010(b)	JPY	3,739,000,000		35,748,714
Munchener Hypothekenbank eG, 5.000%, 1/16/2012	EUR	31,180,000		44,230,179
Republic of Germany, 3.250%, 4/17/2009	EUR	15,690,000		22,132,785
Republic of Germany, 3.750%, 7/04/2013	EUR	31,000,000		43,659,267
Republic of Germany, 4.000%, 1/04/2037	EUR	7,639,000		9,731,679
Republic of Germany, Series 150, 4.000%, 4/13/2012	EUR	12,730,000		18,080,440

				303,458,036

Hong Kong – 0.6%
HKCG Finance Ltd., 6.250%, 8/07/2018, 144A		14,000,000		13,771,814

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Global Bond Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

India – 0.9%
Canara Bank Ltd., (fixed rate to 11/28/2016, variable rate thereafter), 6.365%, 11/28/2021(b)		$	17,350,000	$	13,923,045
ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A			7,800,000		5,383,794

					19,306,839

Indonesia – 1.1%
Indonesia Government International Bond, 7.750%, 1/17/2038, 144A			13,125,000		11,812,500
Indonesia Treasury Bond, 11.000%, 12/15/2012	IDR		122,434,000,000		12,208,137

					24,020,637

Ireland – 2.1%
Depfa ACS Bank, EMTN, 1.650%, 12/20/2016	JPY		5,200,000,000		47,442,892

Italy – 0.1%
Telecom Italia SpA, EMTN, 5.375%, 1/29/2019	EUR		1,500,000		1,726,632

Japan – 4.5%
Development Bank of Japan, 1.750%, 3/17/2017	JPY		4,800,000,000		46,141,650
Japan Finance Corp. for Municipal Enterprises, 1.350%, 11/26/2013	JPY		1,132,000,000		10,766,107
Japan Finance Corp. for Municipal Enterprises, 1.900%, 6/22/2018	JPY		2,670,000,000		25,737,414
Japan Government, 0.900%, 9/15/2009	JPY		1,996,300,000		18,811,057

					101,456,228

Korea – 0.5%
Hanarotelecom, Inc., 7.000%, 2/01/2012, 144A			1,610,000		1,545,600
SK Telecom Co. Ltd., 6.625%, 7/20/2027, 144A			11,225,000		10,136,164

					11,681,764

Luxembourg – 0.3%
Telecom Italia Capital, 5.250%, 10/01/2015			1,660,000		1,381,784
Telecom Italia Capital, 6.375%, 11/15/2033			1,910,000		1,392,008
Telecom Italia Capital SA, 4.950%, 9/30/2014			3,990,000		3,364,647

					6,138,439

Mexico – 0.5%
Axtel SAB de CV, 7.625%, 2/01/2017, 144A			3,920,000		3,485,664
Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015(b)			8,210,000		7,224,800

					10,710,464

Netherlands – 2.9%
Bite Finance International, 8.458%, 3/15/2014, 144A(c)	EUR		2,820,000		2,977,498
Cemex Finance Europe BV, 4.750%, 3/05/2014	EUR		12,717,000		13,741,571
Kingdom of Netherlands, 5.500%, 1/15/2028	EUR		12,995,000		20,038,184
Koninklijke KPN NV, 6.500%, 1/15/2016	EUR		400,000		552,156
Koninklijke KPN NV, GMTN, 4.750%, 1/17/2017	EUR		13,445,000		16,406,683
Linde Finance BV, EMTN, 4.750%, 4/24/2017	EUR		3,865,000		4,914,021
Majapahit Holding BV, 7.250%, 6/28/2017, 144A			3,340,000		2,939,200
OI European Group BV, 6.875%, 3/31/2017, 144A	EUR		1,000,000		1,203,669
Wolters Kluwer NV, 5.125%, 1/27/2014	EUR		1,635,000		2,164,569

					64,937,551


		Principal Amount (‡)	Value (†)


BONDS AND NOTES – continued

Poland – 0.5%
Republic of Poland, Series 2BR, 1.020%, 6/09/2009	JPY	1,200,000,000	$	11,271,899

Singapore – 0.1%
SP Powerassets Ltd., EMTN, 3.730%, 10/22/2010	SGD	2,340,000		1,662,482

South Africa – 0.8%
Edcon Proprietary Ltd., 8.208%, 6/15/2014, 144A(c)	EUR	8,335,000		6,981,739
Republic of South Africa, EMTN, 4.500%, 4/05/2016	EUR	9,090,000		10,403,500

				17,385,239

Supranational – 4.7%
Asia Development Bank, 2.350%, 6/21/2027	JPY	1,700,000,000		16,339,645
European Investment Bank, 1.250%, 9/20/2012(b)	JPY	2,124,000,000		20,091,756
European Investment Bank, 1.400%, 6/20/2017(b)	JPY	6,650,000,000		62,088,509
European Investment Bank, EMTN, Zero Coupon Bond, 4/24/2013, 144A	IDR	90,681,660,000		5,742,851

				104,262,761

Switzerland – 0.5%
Credit Suisse London, EMTN, 6.125%, 8/05/2013	EUR	8,065,000		11,435,556

United Arab Emirates – 1.5%
Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A		15,445,000		15,057,500
DP World Ltd., 6.850%, 7/02/2037, 144A(d)		26,000,000		19,249,360

				34,306,860

United Kingdom – 4.6%
British Sky Broadcasting Group PLC, 6.100%, 2/15/2018, 144A		9,150,000		8,768,628
BSKYB Finance UK PLC, 5.750%, 10/20/2017	GBP	4,300,000		6,775,930
Imperial Tobacco Finance PLC, EMTN, 4.375%, 11/22/2013	EUR	3,300,000		4,058,580
JPMorgan Chase London, Zero Coupon Bond, 10/21/2010, 144A	IDR	75,579,375,000		6,305,227
Lloyds TSB Bank PLC, (fixed rate to 5/12/2017, variable rate thereafter), 4.385%, 5/29/2049	EUR	5,225,000		4,687,574
Lloyds TSB Group PLC, 5.875%, 7/08/2014	EUR	1,235,000		1,720,559
Network Rail MTN Finance PLC, EMTN, 4.875%, 3/06/2009	GBP	6,200,000		11,039,306
Rexam PLC, 6.750%, 6/01/2013, 144A		13,775,000		13,737,532
Standard Chartered Bank, EMTN, 6.750%, 4/27/2009	GBP	800,000		1,426,261
United Kingdom Treasury, 4.750%, 3/07/2020	GBP	10,030,000		18,031,557
United Kingdom Treasury, 5.000%, 3/07/2025	GBP	11,045,000		20,267,078
United Kingdom Treasury, 5.250%, 6/07/2012	GBP	2,520,000		4,645,054
Vodafone Group PLC, 5.750%, 3/15/2016		435,000		395,011

				101,858,297

United States – 37.6%
Ahold Finance USA, Inc., EMTN, 6.500%, 3/14/2017	GBP	5,960,000		10,051,567
Albertson’s, Inc., 7.450%, 8/01/2029		5,544,000		4,930,994
Albertson’s, Inc., 7.750%, 6/15/2026		50,000		45,958

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Global Bond Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

United States – continued
Albertson’s, Inc., 8.000%, 5/01/2031		$	1,000,000	$	926,754
Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028			830,000		672,463
American Express Co., 6.150%, 8/28/2017			995,000		846,692
American Express Co., 7.000%, 3/19/2018			4,845,000		4,276,090
ASIF Global Financing XXVII, 2.380%, 2/26/2009, 144A	SGD		16,300,000		5,764,019
Biogen Idec, Inc., 6.000%, 3/01/2013			10,850,000		10,713,312
Bristol-Myers Squibb Co., 4.625%, 11/15/2021	EUR		3,700,000		4,452,311
Cargill, Inc., 5.600%, 9/15/2012, 144A			5,595,000		5,527,782
Chesapeake Energy Corp., 6.250%, 1/15/2017	EUR		250,000		292,119
Chesapeake Energy Corp., 6.500%, 8/15/2017(b)			1,990,000		1,741,250
Chesapeake Energy Corp., 6.875%, 11/15/2020			5,615,000		4,800,825
CHS/Community Health Systems, Inc., 8.875%, 7/15/2015			3,490,000		3,315,500
CIT Group, Inc., 5.500%, 12/01/2014	GBP		11,655,000		10,343,101
CIT Group, Inc., EMTN, 3.800%, 11/14/2012	EUR		1,100,000		835,715
CIT Group, Inc., EMTN, 4.650%, 9/19/2016	EUR		1,000,000		689,960
CIT Group, Inc., EMTN, 5.000%, 5/13/2014	EUR		450,000		324,058
CIT Group, Inc., EMTN, 5.500%, 12/20/2016	GBP		4,150,000		3,679,839
CIT Group, Inc., GMTN, 4.250%, 9/22/2011	EUR		2,100,000		1,765,808
CIT Group, Inc., MTN, 4.250%, 3/17/2015	EUR		1,200,000		828,067
Citi Credit Card Issuance Trust, Series 2001-A4, 5.375%, 4/10/2013	EUR		5,130,000		6,953,732
Citigroup, Inc., 5.000%, 9/15/2014(d)			19,620,000		15,042,889
Comcast Corp., 4.950%, 6/15/2016			6,300,000		5,430,543
Comcast Corp., 5.900%, 3/15/2016			3,360,000		3,079,621
Comcast Corp., 6.950%, 8/15/2037			3,444,000		2,937,570
Corning, Inc., 5.900%, 3/15/2014			1,675,000		1,621,444
Corning, Inc., 6.200%, 3/15/2016			3,670,000		3,543,458
Couche-Tard US/Finance, 7.500%, 12/15/2013			3,775,000		3,473,000
CSX Corp., 5.600%, 5/01/2017			859,000		748,180
CSX Corp., 6.000%, 10/01/2036(b)			5,358,000		4,072,005
CSX Corp., 6.250%, 3/15/2018(d)			8,075,000		7,308,634
CVS Caremark Corp., 5.750%, 6/01/2017(d)			20,796,000		19,433,696
Delta Air Lines, Inc., Series 2007-1, Class A, 6.821%, 8/10/2022			7,283,151		5,680,857
Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 8/10/2022			2,023,387		1,375,903
Embarq Corp., 7.995%, 6/01/2036			3,605,000		2,577,972
Energy Transfer Partners LP, 6.700%, 7/01/2018			9,230,000		8,748,859
Erac USA Finance Co., 6.375%, 10/15/2017, 144A			9,110,000		7,240,865
Erac USA Finance Co., 7.000%, 10/15/2037, 144A			10,571,000		7,445,293
Federal Home Loan Mortgage Corp., 4.000%, 12/01/2019			132,696		126,971
Federal Home Loan Mortgage Corp., 4.000%, 9/01/2020			866,375		825,748
Federal Home Loan Mortgage Corp., 4.500%, 9/01/2020			4,006,566		3,917,597
Federal Home Loan Mortgage Corp., 5.000%, 4/01/2020			2,957,702		2,943,784
Federal Home Loan Mortgage Corp., 5.000%, 7/01/2035(d)			19,346,733		18,875,889


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

United States – continued
Federal Home Loan Mortgage Corp., 5.500%, 5/01/2020		$	1,621,159	$	1,636,119
Federal Home Loan Mortgage Corp., 5.500%, 1/01/2021			1,023,031		1,032,471
Federal Home Loan Mortgage Corp., 5.500%, 4/01/2037(d)			51,255,132		51,031,619
Federal Home Loan Mortgage Corp., 6.000%, 5/01/2018			520,009		529,605
Federal Home Loan Mortgage Corp., 6.000%, 10/01/2020			1,005,589		1,024,256
Federal Home Loan Mortgage Corp., 6.500%, 8/01/2035			713,414		732,992
Federal Home Loan Mortgage Corp., 6.500%, 10/01/2035			845,889		869,103
Federal National Mortgage Association, 2.290%, 2/19/2009	SGD		16,200,000		11,294,394
Federal National Mortgage Association, 4.500%, 6/01/2019(d)			4,040,063		3,968,025
Federal National Mortgage Association, 5.000%, 10/01/2019			1,309,725		1,309,942
Federal National Mortgage Association, 5.000%, 10/01/2019			358,339		358,399
Federal National Mortgage Association, 5.000%, 4/01/2020			343,779		342,761
Federal National Mortgage Association, 5.000%, 6/01/2020			623,128		621,284
Federal National Mortgage Association, 5.000%, 9/01/2035(d)			9,379,052		9,153,724
Federal National Mortgage Association, 5.000%, 5/01/2036			815,514		795,921
Federal National Mortgage Association, 5.500%, 11/01/2016			402,780		410,398
Federal National Mortgage Association, 5.500%, 5/01/2020			1,680,426		1,698,558
Federal National Mortgage Association, 5.500%, 9/01/2020			679,359		688,601
Federal National Mortgage Association, 5.500%, 11/01/2034			1,331,633		1,330,611
Federal National Mortgage Association, 5.500%, 6/01/2035(d)			5,964,380		5,956,078
Federal National Mortgage Association, 5.500%, 9/01/2035			3,590,834		3,585,835
Federal National Mortgage Association, 5.500%, 12/01/2035(d)			17,873,967		17,849,086
Federal National Mortgage Association, 5.500%, 4/01/2036(d)			12,905,230		12,887,265
Federal National Mortgage Association, 5.500%, 6/01/2037(d)			8,480,204		8,463,947
Federal National Mortgage Association, 6.000%, 6/01/2017			804,314		821,120
Federal National Mortgage Association, 6.000%, 11/01/2017			657,201		672,507
Federal National Mortgage Association, 6.000%, 9/01/2021			2,137,117		2,179,545

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Global Bond Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

United States – continued
Federal National Mortgage Association, 6.000%, 11/01/2034		$	2,234,250	$	2,270,134
Federal National Mortgage Association, 6.000%, 4/01/2035(d)			2,690,928		2,734,146
Federal National Mortgage Association, 6.000%, 5/01/2035			2,818,888		2,859,316
Federal National Mortgage Association, 6.500%, 3/01/2033			1,412,673		1,461,408
Federal National Mortgage Association, 6.500%, 6/01/2035			434,115		445,971
Federal National Mortgage Association, 6.500%, 7/01/2035			168,838		173,450
Federal National Mortgage Association, 6.500%, 10/01/2035			1,257,428		1,294,519
Frontier Communications Corp., 6.250%, 1/15/2013			11,175,000		10,462,594
Frontier Communications Corp., 7.125%, 3/15/2019			1,205,000		957,975
Frontier Communications Corp., 9.000%, 8/15/2031			1,795,000		1,373,175
General Electric Capital Corp., 0.750%, 2/05/2009	JPY		1,365,000,000		12,755,983
General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012	SGD		800,000		545,885
General Electric Capital Corp., EMTN, 1.000%, 3/21/2012	JPY		2,035,000,000		17,348,808
General Electric Capital Corp., EMTN, 1.500%, 4/26/2012	JPY		276,000,000		2,181,364
Georgia-Pacific Corp., 7.125%, 1/15/2017, 144A			1,860,000		1,660,050
Georgia-Pacific LLC, 7.250%, 6/01/2028			4,540,000		3,586,600
Georgia-Pacific LLC, 8.000%, 1/15/2024			180,000		158,400
Georgia-Pacific LLC, 8.875%, 5/15/2031			1,805,000		1,570,350
Goldman Sachs Group LP, 5.000%, 10/01/2014			1,705,000		1,422,084
Goldman Sachs Group, Inc. (The), 5.150%, 1/15/2014			910,000		747,368
Goldman Sachs Group, Inc. (The), 5.314%, 5/23/2016(c)	EUR		8,500,000		8,169,551
Goldman Sachs Group, Inc. (The), 6.875%, 1/18/2038	GBP		4,555,000		6,299,357
Goldman Sachs Group, Inc. (The), 7.250%, 4/10/2028	GBP		2,050,000		2,896,220
Government National Mortgage Association, 5.500%, 11/20/2034			472,621		472,208
Government National Mortgage Association, 5.500%, 2/20/2036			1,400,914		1,399,021
Government National Mortgage Association, 6.000%, 10/20/2035			866,087		878,282
Government National Mortgage Association, 6.000%, 5/15/2037			2,445,286		2,485,124
Government National Mortgage Association, 6.500%, 7/20/2037			3,508,779		3,595,607
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A2, 5.117%, 4/10/2037			11,075,000		10,846,973
Harley-Davidson Funding Corp., Series C, 6.800%, 6/15/2018, 144A			13,795,000		12,916,865


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

United States – continued
HCA, Inc., 5.750%, 3/15/2014		$	765,000	$	596,700
HCA, Inc., 6.250%, 2/15/2013			500,000		417,500
HCA, Inc., 6.375%, 1/15/2015			1,170,000		921,375
HCA, Inc., 6.500%, 2/15/2016(b)			2,360,000		1,870,300
HCA, Inc., 7.690%, 6/15/2025			625,000		464,525
HCA, Inc., MTN, 7.580%, 9/15/2025			614,000		452,352
Hilcorp Energy I LP, 7.750%, 11/01/2015, 144A			5,680,000		4,884,800
Home Depot, Inc., 5.875%, 12/16/2036			7,900,000		5,553,487
Host Hotels & Resorts LP, 6.875%, 11/01/2014			4,255,000		3,680,575
Host Marriott LP, Series O, 6.375%, 3/15/2015			6,040,000		4,907,500
Host Marriott LP, Series Q, 6.750%, 6/01/2016			3,745,000		3,061,537
International Paper Co., 7.950%, 6/15/2018			7,630,000		7,497,322
JPMorgan Chase & Co., 5.125%, 9/15/2014			15,965,000		14,228,247
JPMorgan Chase & Co., 5.150%, 10/01/2015			6,000,000		5,397,234
JPMorgan Chase & Co., (fixed rate to 4/30/2018, variable rate thereafter), 7.900%, 4/29/2049			13,425,000		11,302,239
Kinder Morgan Energy Partners LP, 5.950%, 2/15/2018			10,800,000		9,620,003
KLA-Tencor Corp., 6.900%, 5/01/2018			9,750,000		9,065,550
Kraft Foods, Inc., 6.000%, 2/11/2013			4,831,000		4,801,410
Kraft Foods, Inc., 6.875%, 2/01/2038			8,065,000		7,424,841
L-3 Communications Corp., 5.875%, 1/15/2015			1,935,000		1,751,175
L-3 Communications Corp., 6.125%, 7/15/2013			300,000		279,000
L-3 Communications Corp., 6.125%, 1/15/2014			280,000		259,000
Lehman Brothers Holdings, Inc., 5.750%, 1/03/2017(e)			5,610,000		7,012
Lehman Brothers Holdings, Inc., 6.500%, 7/19/2017(e)			15,905,000		19,881
Level 3 Financing, Inc., 8.750%, 2/15/2017			570,000		413,250
Lucent Technologies, Inc., 6.450%, 3/15/2029			7,950,000		4,849,500
Medco Health Solutions, Inc., 7.125%, 3/15/2018			9,465,000		9,590,913
Merrill Auto Trust Securitization, Series 2008-1, Class A4A, 6.150%, 4/15/2015			8,155,000		7,923,559
Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018			16,910,000		14,961,122
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-1, Class A2, 5.439%, 2/12/2039(c)			5,755,000		5,574,496
Morgan Stanley, 4.750%, 4/01/2014			9,080,000		4,813,263
Morgan Stanley, 5.375%, 11/14/2013	GBP		2,010,000		2,405,466
Motorola, Inc., 6.625%, 11/15/2037			6,000,000		4,373,670
Nabors Industries, Inc., 6.150%, 2/15/2018, 144A			6,235,000		5,944,536
National Semiconductor Corp., 6.150%, 6/15/2012			9,275,000		9,059,458
News America, Inc., 6.150%, 3/01/2037			5,730,000		4,671,824
Nextel Communications, Inc., Series D, 7.375%, 8/01/2015			5,475,000		3,613,500
NGPL PipeCo LLC, 6.514%, 12/15/2012, 144A			8,320,000		8,333,478
NGPL PipeCo LLC, 7.119%, 12/15/2017, 144A			1,740,000		1,651,484
NGPL PipeCo LLC, 7.768%, 12/15/2037, 144A			1,740,000		1,706,258
Nisource Finance Corp., 6.400%, 3/15/2018			5,925,000		5,309,920
Owens & Minor, Inc., 6.350%, 4/15/2016(f)			5,630,000		5,482,106
Owens Brockway Glass Container, Inc., 6.750%, 12/01/2014	EUR		2,170,000		2,657,786

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Global Bond Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

United States – continued
Petrobras International Finance Co., 5.875%, 3/01/2018		$	15,600,000	$	14,178,559
Philip Morris International, Inc. GMTN, 5.875%, 9/04/2015	EUR		8,100,000		11,123,714
Prologis, 6.625%, 5/15/2018(b)			15,685,000		13,471,313
Qwest Capital Funding, Inc., 6.500%, 11/15/2018			855,000		622,012
Qwest Capital Funding, Inc., 6.875%, 7/15/2028(b)			250,000		173,750
Qwest Capital Funding, Inc., 7.250%, 2/15/2011			1,435,000		1,341,725
Qwest Capital Funding, Inc., 7.750%, 2/15/2031			1,845,000		1,346,850
Qwest Corp., 6.500%, 6/01/2017			734,000		587,200
Qwest Corp., 6.875%, 9/15/2033			1,815,000		1,220,587
Qwest Corp., 7.200%, 11/10/2026			100,000		73,500
Qwest Corp., 7.250%, 9/15/2025			1,656,000		1,233,720
Qwest Corp., 7.250%, 10/15/2035			5,165,000		3,667,150
Qwest Corp., 7.500%, 6/15/2023			5,285,000		4,148,725
RBS Capital Trust, (fixed rate to 1/12/2016, variable rate thereafter), 4.243%, 12/29/2049	EUR		4,485,000		4,145,952
Reynolds American, Inc., 6.750%, 6/15/2017			9,755,000		9,115,170
Rogers Communications, Inc. , Class B, 7.500%, 8/15/2038			4,270,000		4,255,290
SLM Corp., Series A, MTN, 4.000%, 1/15/2010			2,815,000		2,209,775
SLM Corp., Series A, MTN, 5.000%, 10/01/2013			6,465,000		4,008,300
SLM Corp., Series A, MTN, 5.375%, 5/15/2014			325,000		201,500
SLM Corp., Series A, MTN, 5.400%, 10/25/2011(b)			535,000		374,500
SLM Corp., Series A, MTN, 8.450%, 6/15/2018			5,825,000		3,961,000
Sprint Capital Corp., 6.900%, 5/01/2019			2,500,000		1,937,500
Sprint Nextel Corp., 6.000%, 12/01/2016			6,775,000		5,216,750
SUPERVALU, Inc., 7.500%, 11/15/2014			1,735,000		1,682,950
Textron, Inc., 3.875%, 3/11/2013	EUR		11,350,000		14,301,794
Time Warner, Inc., 6.625%, 5/15/2029			7,255,000		5,794,714
Time Warner, Inc., 6.950%, 1/15/2028			2,055,000		1,713,295
TXU Corp., Series P, 5.550%, 11/15/2014			1,390,000		1,037,297
TXU Corp., Series Q, 6.500%, 11/15/2024			12,560,000		7,999,175
TXU Corp., Series R, 6.550%, 11/15/2034			2,700,000		1,658,996
U.S. Treasury Note, 4.750%, 2/28/2009(d)			2,500,000		2,533,595
Union Pacific Corp., 5.375%, 6/01/2033			1,198,000		943,841
Union Pacific Corp., 5.650%, 5/01/2017			4,190,000		3,888,563
UnitedHealth Group, Inc., 5.800%, 3/15/2036			2,495,000		1,892,839
UnitedHealth Group, Inc., 6.000%, 2/15/2018			23,035,000		20,837,714
Wells Fargo & Co., 4.625%, 11/02/2035	GBP		12,030,000		15,788,818

					837,928,935

Uruguay – 0.9%
Republic of Uruguay, 4.250%, 4/05/2027	UYU		454,250,624		19,663,116


TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $2,248,053,578)					2,093,060,513


	Shares/Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

CONVERTIBLE BONDS – 0.0%

United States – 0.0%
Level 3 Communications, Inc., 3.500%, 6/15/2012	$	700,000	$	494,375


TOTAL CONVERTIBLE BONDS
(Identified Cost $580,334)				494,375


TOTAL BONDS AND NOTES
(Identified Cost $2,248,633,912)				2,093,554,888


PREFERRED STOCKS – 1.4%

NON-CONVERTIBLE PREFERRED STOCKS – 1.4%

United States – 1.4%
Bank of America Corp., 8.200%(b)		1,091,125		24,823,094
Federal Home Loan Mortgage Corp., 8.375%,(b)(h)(i)		505,450		823,884
Federal National Mortgage Association, 8.250%(b)(i)		998,425		2,176,566
Merrill Lynch & Co., Inc., 8.625%,(b)		179,000		3,399,210


TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Identified Cost $69,406,582)				31,222,754


TOTAL PREFERRED STOCKS
(Identified Cost $69,406,582)				31,222,754


SHORT-TERM INVESTMENTS – 3.5%
State Street Navigator Securities Lending Prime Portfolio(g)		62,965,841		62,965,841
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation dated 9/30/08 at 1.300% to be repurchased at $15,909,574 on 10/01/08 collateralized by $15,950,000 Federal National Mortgage Association, 4.330% due 7/28/2011 valued at $16,229,125 including accrued interest (Note 2h of Notes to Financial Statements)	$	15,909,000		15,909,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $78,874,841)				78,874,841


TOTAL INVESTMENTS – 98.8%
(Identified Cost $2,396,915,335)(a)				2,203,652,483
Other Assets Less Liabilities—1.2%				26,988,321


NET ASSETS – 100.0%			$	2,230,640,804


(‡) Principal amount stated in U.S. dollars unless otherwise noted.
(†) See Note 2a of Notes to Financial Statements.
(a) Federal Tax Information: At September 30, 2008, the net unrealized depreciation on investments based on a cost of $2,402,175,767 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	35,827,874
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(234,351,158)

Net unrealized depreciation			$	(198,523,284)

(b)

All or a portion of this security was on loan to brokers at September 30, 2008.

(c)

Variable rate security. Rate as of September 30, 2008 is disclosed.

(d)

All or a portion of this security is held as collateral for open futures contracts and open forward contracts.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Global Bond Fund – continued

(e)

Issuer has filed for bankruptcy.

(f)

Illiquid security. At September 30, 2008, the value of this security amounted to $5,482,106 or 0.2% of net assets.

(g)

Represents investment of securities lending collateral.

(h)

Non-income producing security.

(i)

Future dividend payments have been eliminated as the issuer has been placed in conservatorship.

144A

EMTN

Euro Medium Term Note

GMTN

Global Medium Term Note

MTN

Medium Term Note

Key to Abbreviations: BRL: Brazilian Real; CAD: Canadian Dollar; COP: Colombian Peso; EUR: Euro; GBP: British Pound; IDR: Indonesian Rupiah; JPY: Japanese Yen; SGD: Singapore Dollar; UYU: Uruguayan Peso

At September 30, 2008, the Fund had the following open forward foreign currency contracts:


Contract to Buy/Sell	Delivery Date	Currency	Units	Value		Unrealized Appreciation (Depreciation)
Sell	12/17/2008	Canadian Dollar	19,500,000	$	18,367,596	$	(121,470	)
Buy	6/15/2009	Chinese Yuan Renminbi	173,000,000		24,933,580		(1,510,932	)
Sell	6/15/2009	Chinese Yuan Renminbi	173,000,000		24,933,580		1,064,112
Buy	12/17/2008	Icelandic Krona	1,164,000,000		10,863,897		(1,698,158	)

Total						$	(2,266,448	)

At September 30, 2008, the Fund had the following open forward cross currency contracts:


Settlement Date	Deliver/Units of Currency		Receive/In Exchange For		Net Unrealized Depreciation
12/17/2008	Euro	13,794,000	Icelandic Krona	1,735,133,466	$	(3,287,521	)

At September 30, 2008, open futures contracts sold were as follows:


Futures	Expiration Date	Contracts	Notional Value		Unrealized Appreciation
U.S. Treasury Bond	12/19/2008	800	$	93,737,500	$	235,349

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Treasuries	11.1	%
Mortgage Related	10.6
Sovereigns	10.0
Banking	9.1
Government Guaranteed	4.8
Supranational	4.7
Wirelines	3.5
Non-Captive Diversified	3.4
Government Sponsored	3.2
Brokerage	2.5
Government Owned – No Guarantee	2.2
Healthcare	2.1
Other Investments, less than 2% each	28.1
Short-Term Investments	3.5

Total Investments	98.8
Other assets less liabilities (including open Forward Foreign Currency Contracts and Futures Contracts)	1.2

Net Assets	100.0	%

CURRENCY EXPOSURE AT SEPTEMBER 30, 2008 AS A PERCENTAGE OF NET ASSETS (Unaudited)


United States Dollar	44.9	%
Euro	26.1
Japanese Yen	18.5
British Pound	5.1
Other, less than 2% each	4.2

Total Investments	98.8
Other assets less liabilities (including open Forward Foreign Currency Contracts and Futures Contracts)	1.2

Net Assets	100.0	%

See accompanying notes to financial statements.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Inflation Protected Securities Fund


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – 98.3% of Net Assets

Automotive – 0.9%
Ford Motor Co., 6.625%, 2/15/2028		$	20,000	$	7,700
Ford Motor Co., 6.625%, 10/01/2028			185,000		70,300
Ford Motor Co., 7.450%, 7/16/2031			140,000		60,200
Ford Motor Co., 7.500%, 8/01/2026			15,000		6,225

					144,425

Brokerage – 0.4%
Goldman Sachs Group, Inc., 6.750%, 10/01/2037			100,000		66,759

Construction Machinery – 0.9%
Joy Global, Inc., 6.625%, 11/15/2036			165,000		139,746

Electric – 0.5%
Texas Competitive Electric Holdings Co., 10.250%, 11/01/2015, 144A			80,000		72,200
TXU Corp., Series Q, 6.500%, 11/15/2024			10,000		6,369

					78,569

Food & Beverage – 0.4%
Dean Foods Co., 6.900%, 10/15/2017			75,000		64,500

Independent Energy – 0.2%
Chesapeake Energy Corp., 6.500%, 8/15/2017			35,000		30,625

Lodging – 0.3%
Royal Caribbean Cruises Ltd., 7.500%, 10/15/2027			50,000		38,500

Metals & Mining – 0.3%
United States Steel Corp., 6.650%, 6/01/2037			55,000		40,904

Non-Captive Consumer – 0.5%
SLM Corp., Series A, MTN, 5.000%, 10/01/2013			30,000		18,600
SLM Corp., Series A, MTN, 5.000%, 4/15/2015			45,000		27,000
SLM Corp., Series A, MTN, 5.375%, 5/15/2014			5,000		3,100
SLM Corp., Series A, MTN, 5.625%, 8/01/2033			45,000		22,500
SLM Corp., MTN, 5.050%, 11/14/2014			25,000		15,250

					86,450

Non-Captive Diversified – 2.7%
General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012	SGD		200,000		136,471
General Electric Capital Corp., Series A, GMTN, 3.485%, 3/08/2012	SGD		300,000		208,710
iStar Financial, Inc., 5.150%, 3/01/2012			40,000		20,000
iStar Financial, Inc., 5.375%, 4/15/2010			5,000		3,000
iStar Financial, Inc., 5.500%, 6/15/2012			5,000		2,550
iStar Financial, Inc., 5.650%, 9/15/2011			20,000		10,400
iStar Financial, Inc., 5.850%, 3/15/2017			10,000		4,900
iStar Financial, Inc., 5.875%, 3/15/2016			20,000		9,800
iStar Financial, Inc., 6.050%, 4/15/2015			5,000		2,450
iStar Financial, Inc., Series B, 5.125%, 4/01/2011			5,000		2,550
iStar Financial, Inc., Series B, 5.700%, 3/01/2014			5,000		2,450
iStar Financial, Inc., Series B, 5.950%, 10/15/2013			55,000		28,600

					431,881

Paper – 0.4%
Georgia-Pacific LLC, 7.700%, 6/15/2015			70,000		64,050

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Inflation Protected Securities Fund – continued


		Principal Amount (‡)			Value (†)


BONDS AND NOTES – continued

Pipelines – 0.2%
Colorado Interstate Gas Co., 5.950%, 3/15/2015		$	3,000		$	2,733
Southern Natural Gas Co., 7.350%, 2/15/2031			30,000			26,304

						29,037

Sovereigns – 0.8%
Mexican Fixed Rate Bonds, Series M-10, 8.000%, 12/17/2015	MXN		15,000	(††)		134,097

Technology – 1.0%
Agilent Technologies, Inc., 6.500%, 11/01/2017			105,000			95,720
Lucent Technologies, Inc., 6.450%, 3/15/2029			90,000			54,900
Lucent Technologies, Inc., 6.500%, 1/15/2028			15,000			9,150

						159,770

Textile – 0.0%
Jones Apparel Group, Inc., 6.125%, 11/15/2034			10,000			6,250

Treasuries – 86.6%
U.S. Treasury Inflation Index Bonds, 1.375%, 7/15/2018(b)			270,266			249,637
U.S. Treasury Inflation Index Bonds, 1.625%, 1/15/2018			1,322,723			1,252,867
U.S. Treasury Inflation Index Bonds, 1.750%, 1/15/2028			278,192			242,700
U.S. Treasury Inflation Index Bonds, 2.000%, 1/15/2026(b)			177,290			161,874
U.S. Treasury Inflation Index Bonds, 2.375%, 1/15/2017(b)			1,275,944			1,286,710
U.S. Treasury Inflation Index Bonds, 2.375%, 1/15/2025(b)			805,044			780,012
U.S. Treasury Inflation Index Bonds, 2.500%, 7/15/2016			310,365			317,663
U.S. Treasury Inflation Index Bonds, 3.375%, 4/15/2032(b)			1,561,165			1,789,729
U.S. Treasury Inflation Index Notes, 1.625%, 1/15/2015(b)			639,232			622,403
U.S. Treasury Inflation Index Notes, 1.875%, 7/15/2013			969,918			967,038
U.S. Treasury Inflation Index Notes, 1.875%, 7/15/2015			627,522			617,766
U.S. Treasury Inflation Index Notes, 2.000%, 4/15/2012			113,799			114,075
U.S. Treasury Inflation Index Notes, 2.000%, 1/15/2014(b)			743,900			742,389
U.S. Treasury Inflation Index Notes, 2.000%, 7/15/2014(b)			688,371			686,650
U.S. Treasury Inflation Index Notes, 2.000%, 1/15/2016(b)			1,063,738			1,050,857
U.S. Treasury Inflation Index Notes, 2.375%, 4/15/2011			421,044			425,846
U.S. Treasury Inflation Index Notes, 2.375%, 1/15/2027(b)			430,767			416,599
U.S. Treasury Inflation Index Notes, 2.625%, 7/15/2017			1,124,798			1,158,366


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Treasuries – continued
U.S. Treasury Inflation Index Notes, 3.000%, 7/15/2012(b)		$	752,250	$	782,986
U.S. Treasury Inflation Index Notes, 3.375%, 1/15/2012(b)			204,364		214,343

					13,880,510

Wireless – 0.6%
ALLTEL Corp., 7.875%, 7/01/2032			20,000		19,850
Sprint Capital Corp., 6.875%, 11/15/2028			120,000		80,400

					100,250

Wirelines – 1.6%
AT&T Corp., 8.000%, 11/15/2031			80,000		81,020
Bell Canada, Series M-17, 6.100%, 3/16/2035	CAD		35,000		23,939
Bell Canada, MTN, 5.000%, 2/15/2017	CAD		30,000		22,264
Bell Canada, MTN, 6.550%, 5/01/2029, 144A	CAD		5,000		3,572
Bell Canada, MTN, 7.300%, 2/23/2032	CAD		15,000		11,586
Embarq Corp., 7.995%, 6/01/2036			165,000		117,993

					260,374


TOTAL BONDS AND NOTES
(Identified Cost $16,772,556)					15,756,697


		Shares

PREFERRED STOCKS – 0.1%

NON-CONVERTIBLE PREFERRED STOCKS – 0.1%

Thrifts & Mortgage Finance – 0.1%
Federal Home Loan Mortgage Corp., 8.375%(d)(e)			1,160		1,891
Federal National Mortgage Association, 8.250%(e)			3,500		7,630


TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Identified Cost $116,500)					9,521


TOTAL PREFERRED STOCKS
(Identified Cost $116,500)					9,521

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Inflation Protected Securities Fund – continued


	Shares/Principal Amount (‡)		Value (†)


SHORT-TERM INVESTMENTS – 10.3%
State Street Navigator Securities Lending Prime Portfolio(c)		1,411,666	$	1,411,666
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $251,009 on 10/1/2008 collateralized by $255,000 Federal Home Loan Bank, 3.750% due 8/18/2009 valued at $257,550 including accrued interest (Note 2h of Notes to Financial Statements)	$	251,000		251,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $1,662,666)				1,662,666


TOTAL INVESTMENTS – 108.7%
(Identified Cost $18,551,722)(a)				17,428,884
Other Assets Less Liabilities—(8.7)%				(1,395,778)


NET ASSETS – 100.0%			$	16,033,106


(‡) Principal amount stated in U.S. dollars unless otherwise noted.
(†) See Note 2a of Notes to Financial Statements.
(††) Amount shown represents units. One unit represents a principal amount of 100.
(a) Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $18,668,982 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	29,568
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(1,269,666)

Net unrealized depreciation			$	(1,240,098)

(b)

All or a portion of this security was on loan to brokers at September 30, 2008.

(c)

Represents investment of securities lending collateral.

(d)

Non-income producing security.

(e)

Future dividend payments have been eliminated as the issuer has been placed in conservatorship.

144A

GMTN

Global Medium Term Note

MTN

Medium Term Note

Key to Abbreviations: CAD: Canadian Dollar, MXN: Mexican Peso, SGD: Singapore Dollar

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Treasuries	86.6	%
Non-Captive Diversified	2.7
Other Investments, less than 2% each	9.1
Short-Term Investments	10.3

Total Investments	108.7
Other assets less liabilities	(8.7	)

Net Assets	100.0	%

See accompanying notes to financial statements.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Institutional High Income Fund


		Principal Amount (‡)	Value (†)


BONDS AND NOTES – 75.8% of Net Assets

NON-CONVERTIBLE BONDS – 68.1%

Aerospace & Defense – 0.7%
Bombardier, Inc., 7.350%, 12/22/2026	CAD	600,000	$	500,719
Bombardier, Inc., 7.450%, 5/01/2034, 144A		1,075,000		999,750

				1,500,469

Airlines – 0.5%
American Airlines, Inc., Series 93A6, 8.040%, 9/16/2011		23,424		17,685
Continental Airlines, Inc., Series 2000-2, Class B, 8.307%, 10/02/2019		332,523		264,356
Continental Airlines, Inc., Series 2001-1, Class B, 7.373%, 6/15/2017		180,851		135,638
Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 8/10/2022		479,476		326,043
Delta Air Lines, Inc., Series 2007-1, Class C, 8.954%, 8/10/2014		580,841		424,014

				1,167,736

Automotive – 4.0%
Cummins, Inc., 7.125%, 3/01/2028		350,000		334,939
FCE Bank PLC, EMTN, 7.125%, 1/16/2012	EUR	150,000		141,484
Ford Motor Co., 6.500%, 8/01/2018		20,000		8,200
Ford Motor Co., 6.625%, 2/15/2028		30,000		11,550
Ford Motor Co., 6.625%, 10/01/2028		1,510,000		573,800
Ford Motor Co., 7.125%, 11/15/2025(b)		190,000		75,050
Ford Motor Co., 7.450%, 7/16/2031(b)		1,685,000		724,550
Ford Motor Co., 7.500%, 8/01/2026		30,000		12,450
Ford Motor Credit Co. LLC, 5.700%, 1/15/2010		2,980,000		2,282,191
Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		940,000		594,341
Ford Motor Credit Co. LLC, 8.625%, 11/01/2010		70,000		49,638
Ford Motor Credit Co. LLC, 9.750%, 9/15/2010		155,000		111,148
Ford Motor Credit Co. LLC, EMTN, 4.875%, 1/15/2010	EUR	130,000		126,280
General Motors Corp., 7.400%, 9/01/2025		5,110,000		1,839,600
General Motors Corp., 8.250%, 7/15/2023(b)		645,000		253,163
Goodyear Tire & Rubber Co., 7.000%, 3/15/2028		2,090,000		1,546,600

				8,684,984

Banking – 3.5%
Barclays Financial LLC, 4.160%, 2/22/2010, 144A	THB	50,000,000		1,460,130
Barclays Financial LLC, EMTN, 4.100%, 3/22/2010, 144A	THB	11,000,000		320,969
BNP Paribas SA, EMTN, Zero Coupon Bond, 6/13/2011, 144A	IDR	10,477,600,000		802,098
JPMorgan Chase & Co., Zero Coupon Bond, 5/17/2010, 144A	BRL	2,200,000		930,005
JPMorgan Chase & Co., Zero Coupon Bond, 3/28/2011, 144A	IDR	6,846,018,000		539,550
JPMorgan Chase & Co., Zero Coupon Bond, 3/28/2011, 144A	IDR	5,376,000,000		423,125
JPMorgan Chase London, Zero Coupon Bond, 10/21/2010, 144A	IDR	9,533,078,500		795,299
Kaupthing Bank, 3.491%, 1/15/2010, 144A(b)(c)		200,000		156,000

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Institutional High Income Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Banking – continued
Kaupthing Bank, Series D, 5.750%, 10/04/2011, 144A		$	1,600,000	$	1,024,000
Rabobank Nederland, 10.250%, 9/10/2009, 144A	ISK		71,000,000		659,991
Rabobank Nederland, EMTN, 14.000%, 1/28/2009, 144A	ISK		40,000,000		381,135

					7,492,302

Brokerage – 1.3%
Bear Stearns Cos., Inc. (The), 4.650%, 7/02/2018			20,000		15,662
Bear Stearns Cos., Inc. (The), 6.400%, 10/02/2017			5,000		4,669
Goldman Sachs Group LP, 5.000%, 10/01/2014			1,305,000		1,088,457
Goldman Sachs Group, Inc. (The), 5.150%, 1/15/2014			665,000		546,153
Morgan Stanley, 3.875%, 1/15/2009			1,045,000		961,419
Morgan Stanley, 5.375%, 10/15/2015			100,000		61,980
Morgan Stanley, EMTN, 5.450%, 1/09/2017			5,000		3,102
Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017			10,000		6,264
Morgan Stanley, MTN, 6.250%, 8/09/2026			200,000		122,264

					2,809,970

Building Materials – 1.0%
Ply Gem Industries, Inc., 9.000%, 2/15/2012(b)			125,000		68,125
USG Corp., 6.300%, 11/15/2016			2,680,000		2,023,400

					2,091,525

Chemicals – 2.5%
Borden, Inc., 7.875%, 2/15/2023			1,824,000		839,040
Borden, Inc., 9.200%, 3/15/2021			2,641,000		1,320,500
Georgia Gulf Corp., 10.750%, 10/15/2016(b)			500,000		225,000
Hercules, Inc., 6.500%, 6/30/2029(d)			1,743,000		1,167,810
Mosaic Global Holdings, Inc., 7.300%, 1/15/2028			1,405,000		1,320,700
Mosaic Global Holdings, Inc., 7.375%, 8/01/2018			400,000		397,189

					5,270,239

Construction Machinery – 0.8%
Great Lakes Dredge & Dock Corp., 7.750%, 12/15/2013			300,000		274,500
United Rentals North America, Inc., 7.000%, 2/15/2014			1,620,000		1,134,000
United Rentals North America, Inc., 7.750%, 11/15/2013(b)			290,000		221,125

					1,629,625

Electric – 4.3%
AES Corp. (The), 7.750%, 3/01/2014			1,185,000		1,102,050
AES Corp. (The), 7.750%, 10/15/2015			645,000		585,337
Dynegy Holdings, Inc., 7.125%, 5/15/2018			100,000		75,500
Dynegy Holdings, Inc., 7.625%, 10/15/2026			490,000		357,700
Dynegy Holdings, Inc., 7.750%, 6/01/2019			1,250,000		1,000,000
Dynegy Holdings, Inc., 8.375%, 5/01/2016(b)			250,000		217,500
NGC Corporation Capital Trust I, Series B, 8.316%, 6/01/2027(b)			1,685,000		1,255,325
NRG Energy, Inc., 7.375%, 2/01/2016			575,000		517,500
Quezon Power Philippines Co., 8.860%, 6/15/2017			377,500		375,613


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Electric – continued
Reliant Energy, Inc., 7.875%, 6/15/2017(b)	$	1,025,000	$	758,500
TXU Corp., Series P, 5.550%, 11/15/2014		920,000		686,556
TXU Corp., Series Q, 6.500%, 11/15/2024		1,515,000		964,869
TXU Corp., Series R, 6.550%, 11/15/2034		420,000		258,066
White Pine Hydro Portfolio LLC, 7.260%, 7/20/2015(d)		1,000,000		963,875

				9,118,391

Entertainment – 0.0%
Six Flags, Inc., 9.625%, 6/01/2014(b)		140,000		78,400

Food & Beverage – 0.9%
Chiquita Brands International, Inc., 7.500%, 11/01/2014(b)		940,000		723,800
Dean Foods Co., 7.000%, 6/01/2016(b)		225,000		195,750
Dole Food Co., Inc., 7.250%, 6/15/2010		415,000		365,200
Dole Food Co., Inc., 8.625%, 5/01/2009		50,000		47,750
Sara Lee Corp., 6.125%, 11/01/2032		690,000		611,416

				1,943,916

Healthcare – 3.3%
HCA, Inc., 5.750%, 3/15/2014		10,000		7,800
HCA, Inc., 6.250%, 2/15/2013		10,000		8,350
HCA, Inc., 6.375%, 1/15/2015		545,000		429,188
HCA, Inc., 6.500%, 2/15/2016		550,000		435,875
HCA, Inc., 6.750%, 7/15/2013		20,000		16,800
HCA, Inc., 7.050%, 12/01/2027		1,000,000		675,290
HCA, Inc., 7.190%, 11/15/2015		185,000		147,691
HCA, Inc., 7.500%, 12/15/2023		395,000		289,357
HCA, Inc., 7.500%, 11/06/2033		2,120,000		1,505,200
HCA, Inc., 7.690%, 6/15/2025		800,000		594,592
HCA, Inc., 8.360%, 4/15/2024		170,000		131,764
HCA, Inc., MTN, 7.580%, 9/15/2025		560,000		412,569
HCA, Inc., MTN, 7.750%, 7/15/2036		180,000		127,782
Tenet Healthcare Corp., 6.875%, 11/15/2031		3,355,000		2,281,400

				7,063,658

Home Construction – 2.8%
K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2015		185,000		105,450
K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016		1,068,000		614,100
K. Hovnanian Enterprises, Inc., 6.375%, 12/15/2014		425,000		246,500
K. Hovnanian Enterprises, Inc., 6.500%, 1/15/2014		272,000		160,480
K. Hovnanian Enterprises, Inc., 7.500%, 5/15/2016		755,000		437,900
K. Hovnanian Enterprises, Inc., 7.750%, 5/15/2013		10,000		5,650
KB Home, 7.250%, 6/15/2018		1,260,000		1,033,200
Lennar Corp., 7.625%, 3/01/2009		766,000		739,190
Lennar Corp., Series B, 5.125%, 10/01/2010		1,320,000		1,108,800
Lennar Corp., Series B, 5.500%, 9/01/2014		95,000		61,750
Lennar Corp., Series B, 5.600%, 5/31/2015		2,000,000		1,300,000
Pulte Homes, Inc., 6.000%, 2/15/2035		400,000		286,000

				6,099,020

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Institutional High Income Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Independent Energy – 1.5%
Chesapeake Energy Corp., 6.500%, 8/15/2017		$	155,000	$	135,625
Chesapeake Energy Corp., 6.875%, 11/15/2020			515,000		440,325
Connacher Oil and Gas Ltd., 10.250%, 12/15/2015, 144A			249,000		239,040
Hilcorp Energy I LP, 7.750%, 11/01/2015, 144A			985,000		847,100
Pioneer Natural Resources Co., 6.875%, 5/01/2018			820,000		730,098
Pioneer Natural Resources Co., 7.200%, 1/15/2028			920,000		792,061

					3,184,249

Media Cable – 0.3%
Virgin Media Finance PLC, 9.125%, 8/15/2016			685,000		573,688

Media Non-Cable – 1.1%
Clear Channel Communications, Inc., 4.900%, 5/15/2015			805,000		239,488
Clear Channel Communications, Inc., 5.500%, 9/15/2014			500,000		155,000
Clear Channel Communications, Inc., 5.500%, 12/15/2016			1,285,000		372,650
Clear Channel Communications, Inc., 5.750%, 1/15/2013			225,000		81,000
Clear Channel Communications, Inc., 6.875%, 6/15/2018			790,000		240,950
Idearc, Inc., 8.000%, 11/15/2016(b)			1,598,000		435,455
R.H. Donnelley Corp., Series A-2, 6.875%, 1/15/2013(b)			510,000		198,900
R.H. Donnelley Corp., Series A-4, 8.875%, 10/15/2017			1,460,000		496,400
Tribune Co., 5.250%, 8/15/2015			160,000		48,000

					2,267,843

Metals & Mining – 0.8%
Algoma Acquisition Corp., 9.875%, 6/15/2015, 144A			1,245,000		1,122,056
Ryerson, Inc., 12.000%, 11/01/2015, 144A			775,000		658,750

					1,780,806

Non-Captive Consumer – 2.9%
American General Finance Corp., MTN, 5.750%, 9/15/2016			700,000		320,044
Countrywide Home Loans, Inc., Series L, MTN, 4.000%, 3/22/2011			120,000		103,242
Hexion US Finance Corp/Hexion Nova Scotia Finance ULC, 9.750%, 11/15/2014			1,600,000		1,264,000
Residential Capital LLC, 8.500%, 6/01/2012			90,000		18,000
Residential Capital LLC, 8.500%, 4/17/2013			1,990,000		398,000
Residential Capital LLC, 8.875%, 6/30/2015			255,000		51,000
Residential Capital LLC, 9.625%, 5/15/2015, 144A			1,026,000		246,240
SLM Corp., Series A, MTN, 6.500%, 6/15/2010	NZD		4,720,000		2,621,462
SLM Corp., Series A, MTN, 8.450%, 6/15/2018			1,620,000		1,101,600

					6,123,588


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Non-Captive Diversified – 4.6%
CIT Group Funding Co. of Canada, 5.200%, 6/01/2015		$	115,000	$	56,475
CIT Group, Inc., 4.750%, 12/15/2010			205,000		133,506
CIT Group, Inc., 5.400%, 2/13/2012			50,000		28,744
CIT Group, Inc., 5.400%, 1/30/2016			290,000		140,360
CIT Group, Inc., 5.650%, 2/13/2017			565,000		275,702
CIT Group, Inc., 5.800%, 10/01/2036			660,000		301,867
CIT Group, Inc., 5.850%, 9/15/2016			50,000		24,250
CIT Group, Inc., Series A, GMTN, 6.000%, 4/01/2036			70,000		28,700
CIT Group, Inc., EMTN, 3.800%, 11/14/2012	EUR		300,000		227,922
CIT Group, Inc., EMTN, 4.650%, 9/19/2016	EUR		1,050,000		724,458
CIT Group, Inc., EMTN, 5.000%, 5/13/2014	EUR		200,000		144,026
CIT Group, Inc., EMTN, 5.500%, 12/20/2016	GBP		300,000		266,012
CIT Group, Inc., GMTN, 4.250%, 2/01/2010			130,000		85,683
CIT Group, Inc., GMTN, 4.250%, 9/22/2011	EUR		1,750,000		1,471,506
CIT Group, Inc., GMTN, 5.000%, 2/13/2014			210,000		118,790
CIT Group, Inc., GMTN, 5.000%, 2/01/2015			427,000		211,065
CIT Group, Inc., MTN, 4.250%, 3/17/2015	EUR		1,260,000		869,470
CIT Group, Inc., MTN, 5.125%, 9/30/2014			85,000		41,918
General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016	NZD		250,000		148,789
General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015	NZD		3,035,000		1,809,309
GMAC Canada Ltd., EMTN, 6.625%, 12/17/2010	GBP		25,000		27,112
GMAC LLC, 6.000%, 12/15/2011			1,480,000		658,066
GMAC LLC, 6.625%, 5/15/2012			75,000		31,753
GMAC LLC, 6.750%, 12/01/2014			244,000		93,651
GMAC LLC, 6.875%, 9/15/2011			85,000		37,926
GMAC LLC, 6.875%, 8/28/2012			150,000		59,622
GMAC LLC, 7.000%, 2/01/2012			175,000		71,332
GMAC LLC, 8.000%, 11/01/2031			340,000		128,274
GMAC LLC, EMTN, 5.375%, 6/06/2011	EUR		500,000		295,638
iStar Financial, Inc., 5.500%, 6/15/2012			65,000		33,150
iStar Financial, Inc., 5.650%, 9/15/2011			100,000		52,000
iStar Financial, Inc., 5.875%, 3/15/2016			20,000		9,800
iStar Financial, Inc., 6.050%, 4/15/2015			20,000		9,800
iStar Financial, Inc., 8.625%, 6/01/2013			1,770,000		867,300
iStar Financial, Inc., Series B, 5.700%, 3/01/2014			70,000		34,300
iStar Financial, Inc., Series B, 5.950%, 10/15/2013			565,000		293,800

					9,812,076

Packaging – 1.0%
Owens-Illinois, Inc., 7.800%, 5/15/2018			1,555,000		1,508,350
Stone Container Finance, 7.375%, 7/15/2014(b)			980,000		754,600

					2,262,950

Paper – 2.9%
Abitibi Consolidated Co. of Canada, 15.500%, 7/15/2010, 144A			110,000		77,550
Abitibi-Consolidated, Inc., 6.000%, 6/20/2013(b)			250,000		66,250
Abitibi-Consolidated, Inc., 7.400%, 4/01/2018			15,000		3,450
Abitibi-Consolidated, Inc., 7.500%, 4/01/2028			140,000		32,200

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Institutional High Income Fund – continued


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Paper – continued
Abitibi-Consolidated, Inc., 8.500%, 8/01/2029	$	15,000	$	3,600
Abitibi-Consolidated, Inc., 8.850%, 8/01/2030		90,000		21,600
Georgia-Pacific LLC, 7.250%, 6/01/2028		1,240,000		979,600
Georgia-Pacific LLC, 7.750%, 11/15/2029		1,165,000		961,125
Georgia-Pacific LLC, 8.000%, 1/15/2024		250,000		220,000
Georgia-Pacific LLC, 8.875%, 5/15/2031		765,000		665,550
Jefferson Smurfit Corp., 7.500%, 6/01/2013(b)		515,000		417,150
Smurfit-Stone Container Enterprises, Inc., 8.000%, 3/15/2017(b)		2,800,000		2,184,000
Westvaco Corp., 7.950%, 2/15/2031		320,000		306,340
Westvaco Corp., 8.200%, 1/15/2030		330,000		309,740

				6,248,155

Pharmaceuticals – 2.0%
Elan Financial PLC, 7.750%, 11/15/2011		3,665,000		3,316,825
Elan Financial PLC, 8.875%, 12/01/2013		1,085,000		911,400

				4,228,225

Pipelines – 2.4%
Colorado Interstate Gas Co., 5.950%, 3/15/2015		22,000		20,044
El Paso Corp., 6.950%, 6/01/2028		15,000		11,844
El Paso Corp., 7.420%, 2/15/2037		1,055,000		840,607
El Paso Corp., 7.800%, 8/01/2031		500,000		421,259
Kinder Morgan, Inc., Senior Note, 5.150%, 3/01/2015		50,000		42,375
Southern Natural Gas Co., 7.350%, 2/15/2031		95,000		83,294
Tennessee Gas Pipeline Co., 7.000%, 10/15/2028(b)		890,000		762,687
Williams Cos., Inc., 7.500%, 1/15/2031		3,375,000		3,071,183

				5,253,293

Property & Casualty Insurance – 0.2%
MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A(b)		690,000		365,700

Railroads – 0.1%
Missouri Pacific Railroad Co., 4.750%, 1/01/2020(d)		30,000		22,800
Missouri Pacific Railroad Co., 5.000%, 1/01/2045(d)		314,000		188,400

				211,200

Retailers – 3.2%
Dillard’s, Inc., 6.625%, 1/15/2018		500,000		310,000
Dillard’s, Inc., 7.000%, 12/01/2028		450,000		229,500
Dillard’s, Inc., 7.130%, 8/01/2018		750,000		476,250
Dillard’s, Inc., 7.750%, 7/15/2026		1,500,000		855,000
Foot Locker, Inc., 8.500%, 1/15/2022		1,679,000		1,519,495
Toys R Us, Inc., 7.375%, 10/15/2018		5,185,000		3,370,250
Toys R Us, Inc., 7.875%, 4/15/2013		197,000		153,660

				6,914,155


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Sovereigns – 3.1%
Indonesia Treasury Bond, Series FR43, 10.250%, 7/15/2022	IDR	1,881,000,000		$	161,018
Indonesia Treasury Bond, Series ZC3, Zero Coupon Bond, 11/20/2012	IDR	4,897,000,000			313,383
Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023	MXN	9,500	(††)		833,705
Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012	MXN	365,000(	††)		3,415,744
Republic of Brazil, 10.250%, 1/10/2028	BRL	4,170,000			1,925,138

					6,648,988

Supermarkets – 1.1%
Albertson’s, Inc., 7.450%, 8/01/2029		1,525,000			1,356,379
Albertson’s, Inc., 8.000%, 5/01/2031		480,000			444,842
Albertson’s, Inc., 8.700%, 5/01/2030		180,000			178,285
Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		240,000			194,447
American Stores Co., 8.000%, 6/01/2026		110,000			103,115

					2,277,068

Supranational – 2.8%
Inter-American Development Bank, EMTN, Zero Coupon Bond, 5/11/2009	BRL	11,000,000			5,144,779
Inter-American Development Bank, EMTN, Zero Coupon Bond, 5/20/2013	IDR	8,600,000,000			517,186
International Bank for Reconstruction & Development, 9.500%, 5/27/2010	ISK	42,500,000			399,750

					6,061,715

Technology – 3.5%
Affiliated Computer Services, Inc., 5.200%, 6/01/2015		496,000			400,520
Amkor Technology, Inc., 7.125%, 3/15/2011		400,000			360,000
Amkor Technology, Inc., 7.750%, 5/15/2013		1,600,000			1,368,000
Corning, Inc., 6.850%, 3/01/2029		701,000			619,209
Freescale Semiconductor, Inc., 10.125%, 12/15/2016(b)		1,047,000			670,080
Lucent Technologies, Inc., 6.450%, 3/15/2029		4,115,000			2,510,150
Motorola, Inc., 5.220%, 10/01/2097		80,000			44,682
Motorola, Inc., 6.500%, 11/15/2028(b)		70,000			52,311
Motorola, Inc., 6.625%, 11/15/2037		70,000			51,026
Nortel Networks Ltd., 6.875%, 9/01/2023		1,000,000			400,000
Northern Telecom Capital Corp., 7.875%, 6/15/2026		2,280,000			1,003,200

					7,479,178

Textile – 0.4%
Jones Apparel Group, Inc., 6.125%, 11/15/2034		890,000			556,250
Kellwood Co., 7.625%, 10/15/2017(d)		500,000			275,000

					831,250

Transportation Services – 2.4%
APL Ltd., 8.000%, 1/15/2024(d)		2,685,000			2,013,750
Atlas Air, Inc., Series 1999-1B, 7.630%, 7/02/2016(e)		397,855			389,898

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Institutional High Income Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Transportation Services – continued
Atlas Air, Inc., Series 1999-1C, 8.770%, 7/02/2012(e)		$	399,542	$	367,578
Atlas Air, Inc., Series 2000-1, Class C, 9.702%, 7/02/2011(e)			40,344		36,713
Atlas Air, Inc., Series B, 7.680%, 1/02/2014(e)			2,207,572		2,207,572
Atlas Air, Inc., Series C, 8.010%, 1/02/2010(e)			289,324		225,673

					5,241,184

Wireless – 2.4%
ALLTEL Corp., 7.875%, 7/01/2032			540,000		535,950
Fairpoint Communications, Inc., 13.125%, 4/01/2018, 144A			720,000		655,200
Nextel Communications, Inc., Series D, 7.375%, 8/01/2015			1,835,000		1,211,100
Nextel Communications, Inc., Series E, 6.875%, 10/31/2013			700,000		476,000
Nextel Communications, Inc., Series F, 5.950%, 3/15/2014			705,000		472,350
Sprint Capital Corp., 6.875%, 11/15/2028			1,045,000		700,150
Sprint Capital Corp., 6.900%, 5/01/2019			815,000		631,625
True Move Co. Ltd., 10.750%, 12/16/2013, 144A			600,000		408,000

					5,090,375

Wirelines – 3.8%
Bell Canada, Series M-17, 6.100%, 3/16/2035	CAD		220,000		150,472
Bell Canada, MTN, 5.000%, 2/15/2017	CAD		105,000		77,926
Bell Canada, MTN, 7.300%, 2/23/2032	CAD		275,000		212,401
Frontier Communications Corp., 7.875%, 1/15/2027			860,000		645,000
Hawaiian Telcom Communications, Inc., Series B, 12.500%, 5/01/2015(b)			50,000		7,000
Level 3 Financing, Inc., 8.750%, 2/15/2017			95,000		68,875
Level 3 Financing, Inc., 9.250%, 11/01/2014			290,000		218,950
Qwest Capital Funding, Inc., 6.500%, 11/15/2018			1,034,000		752,235
Qwest Capital Funding, Inc., 6.875%, 7/15/2028			800,000		556,000
Qwest Capital Funding, Inc., 7.625%, 8/03/2021			290,000		220,400
Qwest Capital Funding, Inc., 7.750%, 2/15/2031			1,550,000		1,131,500
Qwest Corp., 6.500%, 6/01/2017			210,000		168,000
Qwest Corp., 6.875%, 9/15/2033			1,936,000		1,301,960
Qwest Corp., 7.200%, 11/10/2026			500,000		367,500
Qwest Corp., 7.250%, 9/15/2025			515,000		383,675
Qwest Corp., 7.250%, 10/15/2035			1,407,000		998,970
Qwest Corp., 7.500%, 6/15/2023			1,115,000		875,275

					8,136,139


TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $176,813,108)					145,942,060


CONVERTIBLE BONDS – 7.7%

Healthcare – 0.5%
Advanced Medical Optics, Inc., 3.250%, 8/01/2026			285,000		185,962
Affymetrix, Inc., 3.500%, 1/15/2038			1,216,000		851,200

					1,037,162


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Industrial Other – 0.5%
Incyte Corp., 3.500%, 2/15/2011	$	1,100,000	$	1,007,875

Media Non-Cable – 0.1%
Liberty Media LLC, 3.500%, 1/15/2031		62,152		27,502
Sinclair Broadcast Group, Inc., (Step to 2.000% on 1/15/2011), 4.875%, 7/15/2018(f)		155,000		140,663

				168,165

Non-Captive Consumer – 0.2%
Countrywide Financial Corp., Series A, Zero Coupon Bond, 4/15/2037(b)		108,000		105,840
Countrywide Financial Corp., Series B, 0.554%, 5/15/2037(b)(c)		292,000		265,720

				371,560

Pharmaceuticals – 2.9%
Epix Pharmaceuticals, Inc., 3.000%, 6/15/2024		230,000		115,000
Human Genome Sciences, Inc., 2.250%, 8/15/2012		980,000		654,150
Nektar Therapeutics, 3.250%, 9/28/2012		1,180,000		594,425
Valeant Pharmaceuticals International, 3.000%, 8/16/2010		1,230,000		1,162,350
Valeant Pharmaceuticals International, 4.000%, 11/15/2013		980,000		917,525
Vertex Pharmaceuticals, Inc., 4.750%, 2/15/2013		1,805,000		2,723,294

				6,166,744

REITs – 0.4%
Host Hotels & Resorts, Inc., 2.625%, 4/15/2027, 144A		1,170,000		906,750

Technology – 1.3%
Kulicke & Soffa Industries, Inc., 0.500%, 11/30/2008		595,000		575,662
Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		230,000		157,263
Kulicke & Soffa Industries, Inc., 1.000%, 6/30/2010		350,000		274,313
Maxtor Corp., 5.750%, 3/01/2012(d)		1,489,000		1,369,880
Nortel Networks Corp., 2.125%, 4/15/2014		795,000		380,606
Richardson Electronics Ltd., 7.750%, 12/15/2011		132,000		99,000

				2,856,724

Textile – 0.0%
Dixie Yarns, Inc., 7.000%, 5/15/2012		19,000		16,910

Transportation Services – 0.0%
Builders Transportation, Inc., 8.000%, 8/15/2005(g)		75,000		—

Wirelines – 1.8%
Level 3 Communications, Inc., 2.875%, 7/15/2010		2,005,000		1,576,431
Level 3 Communications, Inc., 3.500%, 6/15/2012		155,000		109,469
Level 3 Communications, Inc., 6.000%, 9/15/2009		1,820,000		1,710,800
Level 3 Communications, Inc., 6.000%, 3/15/2010		575,000		503,125

				3,899,825


TOTAL CONVERTIBLE BONDS
(Identified Cost $17,165,648)				16,431,715


TOTAL BONDS AND NOTES
(Identified Cost $193,978,756)				162,373,775

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Institutional High Income Fund – continued


	Principal Amount (‡)		Value (†)


BANK LOANS – 0.2%

Consumer Products – 0.0%
Mega Bloks, Inc., Term Loan B, 8.750%, 7/26/2012(h)	$	99,743	$	77,800

Food & Beverage – 0.0%
Dole Food Co., Inc., LOC, 4.788%, 4/12/2013(h)		6,120		5,367
Dole Food Co., Inc., Term Loan, 4.738%, 4/12/2013(h)		4,109		3,603
Dole Food Co., Inc., Tranche C Term Loan, 4.795%, 4/12/2013(h)		21,561		18,909

				27,879

Media Non-Cable – 0.2%
Idearc, Inc., Term Loan B, 5.767%, 11/17/2014(h)		527,695		314,638
Tribune Co., Tranche X, 5.541%, 6/04/2009(h)		25,600		23,712

				338,350

Wirelines – 0.0%
Hawaiian Telcom Communications, Inc., Term Loan C, 6.262%, 6/01/2014(h)		155,000		106,618


TOTAL BANK LOANS
(Identified Cost $679,612)				550,647


	Shares

COMMON STOCKS – 3.3%

Biotechnology – 1.3%
Vertex Pharmaceuticals, Inc.(b)(e)		82,587		2,745,192

Communications Equipment – 0.5%
Corning, Inc.(b)		69,766		1,091,140

Containers & Packaging – 0.6%
Owens-Illinois, Inc.(e)		40,621		1,194,257

Food Products – 0.0%
ConAgra Foods, Inc.		3,100		60,326

Household Durables – 0.1%
KB Home(b)		6,775		133,332

Oil, Gas & Consumable Fuels – 0.0%
Chesapeake Energy Corp.		2,846		102,058

Pharmaceuticals – 0.4%
Bristol-Myers Squibb Co.		43,200		900,720

REITs-Apartments – 0.3%
Apartment Investment & Management Co.(b)		4,746		166,205
Associated Estates Realty Corp.		32,565		424,322

				590,527

REITs-Shopping Malls – 0.1%
Developers Diversified Realty Corp.(b)		7,125		225,791


TOTAL COMMON STOCKS
(Identified Cost $5,170,771)				7,043,343


	Shares	Value (†)

PREFERRED STOCKS – 1.6%

CONVERTIBLE PREFERRED STOCKS – 1.3%

Automotive – 0.2%
Ford Motor Co. Capital Trust II, 6.500%(b)	27,177	$	418,526
General Motors Corp., 6.250%	11,236		89,888

			508,414

Commercial Banks – 0.0%
Wachovia Corp., Series L, Class A, 7.500%	138		53,130

Diversified Consumer Services – 0.1%
Six Flags, Inc., 7.250%(b)	39,950		223,321

Diversified Financial Services – 0.1%
CIT Group, Inc., 8.750%	4,500		148,185

Electric Utilities – 0.4%
AES Trust III, 6.750%	17,119		656,514
CMS Energy Trust I, 7.750%	4,150		166,000

			822,514

Machinery – 0.1%
United Rentals Trust, 6.500%	14,328		315,216

Oil, Gas & Consumable Fuels – 0.1%
El Paso Energy Capital Trust I, 4.750%	5,700		189,881

REITs-Hotel – 0.0%
FelCor Lodging Trust, Inc., Series A, 7.800%	1,100		13,475

Semiconductors & Semiconductor Equipment – 0.3%
Lucent Technologies Capital Trust, 7.750%	1,150		534,347


TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified Cost $5,063,611)			2,808,483


NON-CONVERTIBLE PREFERRED STOCKS – 0.3%

Capital Markets – 0.1%
Lehman Brothers Holdings Capital Trust I, 6.000%(i)	725		116
Lehman Brothers Holdings, Inc., 5.670%,(i)	1,362		95
Lehman Brothers Holdings, Inc., 5.940%,(i)	1,535		54
Lehman Brothers Holdings, Inc., 6.500%,(i)	6,334		317
Lehman Brothers Holdings, Inc., 7.950%,(i)	14,011		840
Merrill Lynch & Co., Inc., 6.375%,	18,000		246,420

			247,842

Thrifts & Mortgage Finance – 0.2%
Countrywide Capital IV, 6.750%, 4/01/2033	7,075		62,968
Federal Home Loan Mortgage Corp., 5.000%,(e)(k)	1,350		2,430
Federal Home Loan Mortgage Corp., 5.790%,(e)(k)	7,100		14,200
Federal Home Loan Mortgage Corp., 5.810%,(e)(k)	1,600		2,800
Federal Home Loan Mortgage Corp., 6.000%,(e)(k)	1,700		3,060
Federal Home Loan Mortgage Corp., 5.700%,(e)(k)	2,200		4,114
Federal Home Loan Mortgage Corp., 6.420%,(e)(k)	2,200		3,960
Federal Home Loan Mortgage Corp., 5.900%,(e)(k)	4,700		5,875
Federal Home Loan Mortgage Corp., 5.570%,(e)(k)	31,000		30,690
Federal Home Loan Mortgage Corp., 5.660%,(e)(k)	11,100		13,875
Federal Home Loan Mortgage Corp., 6.550%,(e)(k)	4,150		4,482
Federal Home Loan Mortgage Corp., 8.375%(e)(k)	28,100		45,803

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Institutional High Income Fund – continued


	Shares/Principal Amount (‡)		Value (†)


NON-CONVERTIBLE PREFERRED STOCKS – continued

Thrifts & Mortgage Finance – continued
Federal National Mortgage Association, 5.810%,(k)		1,400	$	5,040
Federal National Mortgage Association, 5.375%,(k)		1,850		6,105
Federal National Mortgage Association, 5.125%,(k)		900		3,150
Federal National Mortgage Association, 4.750%,(k)		4,850		15,035
Federal National Mortgage Association, 6.750%,(k)		2,200		3,960
Federal National Mortgage Association, 8.250%,(b)(k)		40,550		88,399

				315,946


TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Identified Cost $2,955,610)				563,788


TOTAL PREFERRED STOCKS
(Identified Cost $8,019,221)				3,372,271


CLOSED END INVESTMENT COMPANIES – 1.2%
BlackRock Senior High Income Fund, Inc.		15,920		52,218
DWS High Income Trust		22,522		74,773
Dreyfus High Yield Strategies Fund		78,008		232,464
Highland Credit Strategies Fund(b)		31,505		301,188
Van Kampen High Income Trust II		42,002		96,184
Western Asset High Income Opportunity Fund, Inc.		176,050		764,057
Western Asset Managed High Income Fund, Inc.(b)		222,550		994,798


TOTAL CLOSED END INVESTMENT COMPANIES
(Identified Cost $3,511,223)				2,515,682


SHORT-TERM INVESTMENTS – 22.2%
State Street Navigator Securities Lending Prime Portfolio(j)		12,836,133		12,836,133
Repurchase Agreement with State Street Corp. dated 9/30/08 at 1.300% to be repurchased at $8,723 on 10/01/08 collateralized by $10,000 Federal Home Loan Bank, 5.300% due 10/03/12 with a value of $10,261, including accrued interest (Note 2h of Notes to Financial Statements)	$	8,723		8,723
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/08 at 1.300% to be repurchased at $34,683,252 on 10/01/08 collateralized by $34,770,000 Federal National Mortgage Association, 4.330% due 7/28/11 with a value of $35,378,475, including accrued interest (Note 2h of Notes to Financial Statements)		34,682,000		34,682,000


	Value (†)

SHORT-TERM INVESTMENTS – continued

TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $47,526,856)		47,526,856


TOTAL INVESTMENTS – 104.3%
(Identified Cost $258,886,439)(a)		223,382,574
Other Assets Less Liabilities—(4.3)%		(9,181,623)


NET ASSETS – 100.0%	$	214,200,951


(‡) Principal amount stated in U.S. dollars unless otherwise noted.
(†) See Note 2a of Notes to Financial Statements.
(††) Amount shown represents units. One unit represents a principal amount of 100.
(a) Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $258,932,731 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	7,279,669
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(42,829,826)

Net unrealized depreciation	$	(35,550,157)

(b)

All or a portion of this security was on loan to brokers at September 30, 2008.

(c)

Variable rate security. Rate as of September 30, 2008 is disclosed.

(d)

Illiquid security. At September 30, 2008, the value of these securities amounted to $6,001,515 or 2.8% of net assets.

(e)

Non-income producing security.

(f)

Step Bond: Coupon is a fixed rate for an initial period then resets at a specified date and rate.

(g)

Bankrupt issuer. Security remains in the Portfolio of Investments pending final resolution of bankruptcy proceedings.

(h)

Variable rate security. Rate shown represents the weighted average rate at September 30, 2008.

(i)

Issuer has filed for bankruptcy.

(j)

Represents investment of security lending collateral.

(k)

Future dividend payments have been eliminated as the issuer has been placed in conservatorship.

144A

EMTN

Euro Medium Term Note

GMTN

Global Medium Term Note

LOC

Letter of Credit

MTN

Medium Term Note

REITs

Real Estate Investment Trusts

Key to Abbreviations: BRL: Brazilian Real; CAD: Canadian Dollar; EUR: Euro; GBP: British Pound; IDR: Indonesian Rupiah; ISK: Icelandic Krona; MXN: Mexican Peso; NZD: New Zealand Dollar; THB: Thai Baht

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Institutional High Income Fund – continued

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Wirelines	5.6	%
Pharmaceuticals	5.3
Technology	4.8
Non-Captive Diversified	4.6
Electric	4.3
Automotive	4.2
Healthcare	3.8
Banking	3.5
Retailers	3.2
Non-Captive Consumer	3.1
Sovereigns	3.1
Paper	2.9
Home Construction	2.8
Supranational	2.8
Chemicals	2.5
Pipelines	2.4
Transportation Services	2.4
Wireless	2.4
Other Investments, less than 2% each	18.4
Short-Term Investments	22.2

Total Investments	104.3
Other assets less liabilities	(4.3	)

Net Assets	100.0	%

See accompanying notes to financial statements.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Intermediate Duration Fixed Income Fund


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – 93.3% of Net Assets

ABS Credit Card – 2.2%
BA Credit Card Trust, Series 2008-A5, Class A5, 3.688%, 12/16/2013(b)	$	260,000	$	255,388
Citibank Credit Card Issuance Trust, Series 2008-C6, Class C6, 6.300%, 6/20/2014		255,000		221,576
Discover Card Master Trust I, 2.538%, 10/16/2014(b)		150,000		138,695
MBNA Credit Card Master Note Trust, Series 2004-A3, Class A3, 2.748%, 8/16/2021(b)		140,000		117,338

				732,997

Aerospace & Defense – 0.0%
Boeing Capital Corp., 6.100%, 3/01/2011		5,000		5,249

Asset-Backed Securities – 2.3%
Americredit Automobile Receivables Trust, Series 2004-DF, Class A4, 3.430%, 7/06/2011		69,376		67,191
Capital Auto Receivables Asset Trust, Series 2004-2, Class A4, 3.750%, 7/15/2009		6,351		6,344
Countrywide Asset Backed Certificates, Series 2004-S1, Class A2, 3.872%, 3/25/2020		44,006		42,302
Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035		135,000		96,943
Countrywide Asset-Backed Certificates, Series 2006-S1, Class A2, 5.549%, 8/25/2021		282,101		256,327
Ford Credit Auto Owner Trust, 4.380%, 1/15/2010		95,023		94,911
Navistar Financial Corp. Owner Trust, Series 2004-B, Class A4, 3.530%, 10/15/2012		155,049		153,965
USAA Auto Owner Trust, Series 2006-1, Class A3, 5.010%, 9/15/2010		46,557		46,655

				764,638

Automotive – 0.4%
Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		235,000		144,421

Banking – 6.7%
Bank of America Corp., 5.650%, 5/01/2018		345,000		290,591
Bank One Corp., 5.900%, 11/15/2011		5,000		4,881
Citigroup, Inc., 5.300%, 10/17/2012		425,000		378,345
Credit Suisse NY, 6.000%, 2/15/2018		110,000		95,832
HSBC Finance Corp., 4.750%, 4/15/2010		350,000		344,154
JPMorgan Chase & Co., 5.600%, 6/01/2011		475,000		468,822
Suntrust Banks, Inc., 5.250%, 11/05/2012		190,000		170,683
Wachovia Corp., 5.300%, 10/15/2011		175,000		145,928
Wells Fargo & Co., 5.250%, 10/23/2012		305,000		292,754

				2,191,990

Brokerage – 3.5%
Bear Stearns Cos., Inc., 5.350%, 2/01/2012		130,000		123,683
Goldman Sachs Group, Inc., 4.500%, 6/15/2010		300,000		278,484
Goldman Sachs Group, Inc., 5.300%, 2/14/2012		10,000		9,012
Goldman Sachs Group, Inc., 5.450%, 11/01/2012		155,000		131,392
Merrill Lynch & Co., Inc., 5.450%, 2/05/2013		350,000		315,287
Morgan Stanley, 5.300%, 3/01/2013		400,000		274,720

				1,132,578

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Intermediate Duration Fixed Income Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Chemicals – 0.5%
Lubrizol Corp., 4.625%, 10/01/2009		$	5,000	$	4,976
PPG Industries, Inc., 5.750%, 3/15/2013			170,000		168,486

					173,462

Construction Machinery – 0.7%
Caterpillar Financial Services, MTN, 4.850%, 12/07/2012			160,000		155,735
John Deere Capital Corp., MTN, 4.500%, 4/03/2013			90,000		85,902

					241,637

Consumer Products – 1.0%
Koninklijke (Royal) Philips Electronics NV, 4.625%, 3/11/2013			175,000		170,538
Newell Rubberamid, Inc., 5.500%, 4/15/2013			170,000		161,812

					332,350

Diversified Manufacturing – 0.5%
Honeywell International, Inc., 4.250%, 3/01/2013			175,000		169,990

Electric – 2.2%
Carolina Power & Light Co., 6.500%, 7/15/2012			5,000		5,150
Duke Energy Corp., 5.625%, 11/30/2012			300,000		303,840
Nisource Finance Corp., 7.875%, 11/15/2010			145,000		149,134
Pacific Gas & Electric Co., 3.600%, 3/01/2009			5,000		4,960
Virginia Electric and Power Co., 5.100%, 11/30/2012			260,000		254,501

					717,585

Entertainment – 1.7%
Time Warner, Inc., 5.875%, 11/15/2016			225,000		197,748
Time Warner, Inc., 6.500%, 11/15/2036			45,000		34,173
Walt Disney Co., 5.700%, 7/15/2011			315,000		324,472

					556,393

Food & Beverage – 1.6%
General Mills, Inc., 5.650%, 9/10/2012			225,000		227,097
HJ Heinz Finance Co., 6.000%, 3/15/2012			100,000		102,182
Kellogg Co., 5.125%, 12/03/2012			175,000		174,501
Kraft Foods, Inc., 5.625%, 11/01/2011			5,000		5,018

					508,798

Government Sponsored – 1.1%
Federal National Mortgage Association, 2.290%, 2/19/2009	SGD		500,000		348,592

Healthcare – 2.1%
Hospira, Inc., 5.550%, 3/30/2012			250,000		249,862
Medco Health Solutions, Inc., 6.125%, 3/15/2013			170,000		172,932
UnitedHealth Group, Inc., 4.875%, 2/15/2013			180,000		172,043
WellPoint, Inc., 5.250%, 1/15/2016			100,000		92,112

					686,949

Healthcare Insurance – 0.6%
Aetna, Inc., 7.875%, 3/01/2011			170,000		180,531


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Hybrid ARMs – 1.1%
Indymac Index Mortgage Loan Trust, Series 2006-AR25, Class 3A1, 6.321%, 9/25/2036(b)	$	556,242	$	372,658

Independent Energy – 0.5%
XTO Energy, Inc., 4.900%, 2/01/2014		5,000		4,670
XTO Energy, Inc., 5.750%, 12/15/2013		170,000		163,203

				167,873

Media Cable – 2.2%
Comcast Cable Communications, 7.125%, 6/15/2013		195,000		196,893
Comcast Corp., 4.950%, 6/15/2016		160,000		137,919
Cox Communications, Inc., 4.625%, 1/15/2010		5,000		4,927
Cox Communications, Inc., 5.450%, 12/15/2014		215,000		200,327
Time Warner Cable, Inc., 6.200%, 7/01/2013		170,000		164,925

				704,991

Media Non-Cable – 0.5%
Thomson Reuters Corp., 5.950%, 7/15/2013		175,000		174,793

Metals & Mining – 0.9%
United States Steel Corp., 6.050%, 6/01/2017		175,000		152,066
Vale Overseas Ltd., 6.250%, 1/23/2017		165,000		154,183

				306,249

Mortgage Related – 27.9%
Banc of America Commercial Mortgage, Inc., Series 2006-2, Class A4, 5.739%, 5/10/2045(b)		205,000		185,517
Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A2, 5.634%, 4/10/2049		490,000		457,575
Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A4, 5.712%, 6/11/2040(b)		250,000		215,391
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD2, Class A2, 5.408%, 1/15/2046		140,000		135,536
Countrywide Alternative Loan Trust, Series 2006-J5, Class 4A1, 6.014%, 7/25/2021(b)		275,942		239,639
Federal Home Loan Mortgage Corp., 4.500%, 12/01/2019		15,351		15,058
Federal Home Loan Mortgage Corp., 5.000%, 5/01/2019		5,728		5,737
Federal Home Loan Mortgage Corp., 5.000%, 1/01/2020		6,936		6,925
Federal Home Loan Mortgage Corp., 5.000%, 7/01/2023		994,411		986,624
Federal Home Loan Mortgage Corp., 5.000%, 8/15/2024		496,348		499,959
Federal Home Loan Mortgage Corp., 5.500%, 3/01/2013		9,863		10,012
Federal Home Loan Mortgage Corp., 5.500%, 8/01/2022		191,459		192,886
Federal Home Loan Mortgage Corp., 6.000%, 11/01/2012		16,991		17,508
Federal Home Loan Mortgage Corp., 6.343%, 1/01/2035(b)		252,415		258,742

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Intermediate Duration Fixed Income Fund – continued


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Mortgage Related – continued
Federal Home Loan Mortgage Corp., 6.500%, 1/01/2024	$	4,378	$	4,545
Federal Home Loan Mortgage Corp., 7.000%, 2/01/2009		139		141
Federal Home Loan Mortgage Corp., 8.000%, 7/01/2025		466		506
Federal National Mortgage Association, 4.500%, 12/01/2019		19,248		18,905
Federal National Mortgage Association, 5.000%, 1/01/2019		312,094		313,121
Federal National Mortgage Association, 5.000%, 2/01/2019		452,096		452,170
Federal National Mortgage Association, 5.375%, 6/12/2017(c)		680,000		712,960
Federal National Mortgage Association, 5.500%, 1/01/2017		49,078		50,006
Federal National Mortgage Association, 5.500%, 1/01/2017		56,542		57,559
Federal National Mortgage Association, 5.500%, 2/01/2017		29,765		30,328
Federal National Mortgage Association, 5.500%, 8/01/2017		681,547		693,800
Federal National Mortgage Association, 5.500%, 9/01/2017		150,547		153,254
Federal National Mortgage Association, 5.500%, 11/01/2017		998		1,016
Federal National Mortgage Association, 5.500%, 1/01/2020(d)		664,042		673,075
Federal National Mortgage Association, 5.500%, 3/01/2020(d)		554,034		560,012
Federal National Mortgage Association, 6.000%, 9/01/2021		9,757		9,950
Federal National Mortgage Association, 7.500%, 6/01/2016		2,661		2,792
Federal National Mortgage Association, 8.000%, 6/01/2015		3,738		3,964
Government National Mortgage Association, 6.500%, 12/15/2023		10,734		11,028
Government National Mortgage Association, 8.500%, 9/15/2022		3,247		3,588
Government National Mortgage Association, 9.500%, 1/15/2019		7,169		7,986
GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, 4.751%, 7/10/2039		205,000		183,924
GS Mortgage Securities Corp. II, Series 2006-GG8, Class A2, 5.479%, 11/10/2039		410,000		393,172
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A2, 5.861%, 4/15/2045(b)		375,000		365,246
LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A3, 4.647%, 7/15/2030		230,000		218,751


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Mortgage Related – continued
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-1, Class A4, 5.424%, 2/12/2039(b)		$	320,000	$	285,033
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4, 5.909%, 6/12/2046(b)			210,000		191,710
Morgan Stanley Capital I, Series 2005-T19, Class A4A, 4.890%, 6/12/2047			330,000		294,993
Morgan Stanley Capital I, Series 2006-T23, Series A2, 5.742%, 8/12/2041(b)			205,000		199,535

					9,120,179

Non-Captive Consumer – 0.6%
American Express Co., 5.500%, 9/12/2016			85,000		72,542
American Express Co., 6.150%, 8/28/2017			45,000		38,293
American General Finance Corp., Series H, MTN, 5.375%, 10/01/2012			5,000		2,733
SLM Corp., Series A, MTN, 5.000%, 10/01/2013			10,000		6,200
SLM Corp., Series A, MTN, 5.375%, 5/15/2014			10,000		6,200
SLM Corp., Series A, MTN, 8.450%, 6/15/2018			80,000		54,400

					180,368

Non-Captive Diversified – 3.2%
CIT Group, Inc., 5.650%, 2/13/2017			255,000		124,432
CIT Group, Inc., 5.850%, 9/15/2016			20,000		9,700
General Electric Capital Corp., Series A, GMTN, 3.485%, 3/08/2012	SGD		500,000		347,851
General Electric Capital Corp., Series A, GMTN, 5.250%, 10/19/2012			345,000		324,354
International Lease Finance Corp., Series Q, MTN, 5.750%, 6/15/2011			205,000		147,732
iStar Financial, Inc., 5.150%, 3/01/2012			170,000		85,000

					1,039,069

Oil Field Services – 0.5%
Weatherford International Ltd., 5.150%, 3/15/2013			175,000		168,534

Pharmaceuticals – 0.8%
Abbott Laboratories, 5.150%, 11/30/2012			240,000		242,756
Schering-Plough Corp., 5.550%, 12/01/2013			5,000		4,835

					247,591

Pipelines – 1.5%
Energy Transfer Partners LP, 6.000%, 7/01/2013			170,000		166,016
Kinder Morgan Energy Partners LP, 5.000%, 12/15/2013			185,000		171,344
Spectra Energy Capital LLC, 5.668%, 8/15/2014			175,000		167,258

					504,618

Railroads – 1.6%
Burlington Northern Santa Fe Corp., 6.125%, 3/15/2009			205,000		204,969
Canadian Pacific Railway Co., 5.750%, 5/15/2013			170,000		164,996
Union Pacific Corp., 5.750%, 11/15/2017			160,000		148,095

					518,060

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Intermediate Duration Fixed Income Fund – continued


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

REITs – 3.4%
Colonial Realty LP, 4.750%, 2/01/2010	$	55,000	$	53,163
Colonial Realty LP, 4.800%, 4/01/2011		125,000		118,750
Developers Diversified Realty Corp., 3.875%, 1/30/2009		10,000		9,840
ERP Operating LP, 6.625%, 3/15/2012		165,000		163,838
Federal Realty Investment Trust, 5.400%, 12/01/2013		215,000		200,581
First Industrial LP, 5.250%, 6/15/2009		10,000		9,829
ProLogis Trust, 5.500%, 4/01/2012		410,000		393,148
Simon Property Group LP, 5.300%, 5/30/2013		170,000		158,787

				1,107,936

Retailers – 1.2%
CVS Caremark Corp., 5.750%, 6/01/2017		160,000		149,519
J.C. Penney Corp., Inc., 5.750%, 2/15/2018		50,000		42,006
Macy’s Retail Holdings, Inc., 5.350%, 3/15/2012		205,000		188,782

				380,307

Supermarkets – 0.6%
Kroger Co., 6.200%, 6/15/2012		50,000		50,490
Kroger Co., 6.400%, 8/15/2017		35,000		33,559
Kroger Co., 6.750%, 4/15/2012		115,000		117,727

				201,776

Technology – 4.2%
Agilent Technologies, Inc., 6.500%, 11/01/2017		120,000		109,394
Corning, Inc., 6.200%, 3/15/2016		45,000		43,448
Equifax, Inc., 7.000%, 7/01/2037		85,000		71,691
IBM International Group Capital, 5.050%, 10/22/2012		230,000		231,920
Jabil Circuit, Inc., 5.875%, 7/15/2010		350,000		336,000
National Semiconductor Corp., 6.600%, 6/15/2017		175,000		164,193
Oracle Corp., 4.950%, 4/15/2013		170,000		169,451
Pitney Bowes, Inc., 5.250%, 1/15/2037		95,000		87,438
Xerox Corp., 6.400%, 3/15/2016		170,000		158,319

				1,371,854

Treasuries – 12.3%
U.S. Treasury STRIPS, Zero Coupon Bond, 2/15/2015		535,000		427,268
U.S. Treasury Notes, 2.750%, 2/28/2013(c)		565,000		562,087
U.S. Treasury Notes, 3.375%, 11/30/2012(c)		710,000		727,084
U.S. Treasury Notes, 4.000%, 2/15/2015(c)(d)		775,000		813,871
U.S. Treasury Notes, 4.000%, 8/15/2018(c)		120,000		121,706
U.S. Treasury Notes, 4.250%, 8/15/2014(c)		65,000		69,210
U.S. Treasury Notes, 4.625%, 2/15/2017		170,000		180,904
U.S. Treasury Notes, 4.750%, 5/15/2014(c)		175,000		191,133
U.S. Treasury Notes, 4.750%, 8/15/2017(c)		670,000		718,208
U.S. Treasury Notes, 5.000%, 2/15/2011(c)		200,000		213,875

				4,025,346

Wireless – 0.9%
Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		5,000		3,350
Sprint Nextel Corp., 6.000%, 12/01/2016		170,000		130,900
Vodafone Group Plc, 5.350%, 2/27/2012		175,000		171,925

				306,175


	Shares/Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Wirelines – 2.3%
AT&T, Inc., 5.100%, 9/15/2014	$	180,000	$	168,352
Embarq Corp., 7.995%, 6/01/2036		155,000		110,842
Qwest Corp., 5.625%, 11/15/2008		110,000		108,900
Telecom Italia Capital SA, 4.950%, 9/30/2014		185,000		156,005
Verizon New England, Inc., 6.500%, 9/15/2011		5,000		4,957
Verizon Virginia, Inc., Series A, 4.625%, 3/15/2013		230,000		211,672

				760,728


TOTAL BONDS AND NOTES
(Identified Cost $32,432,073)				30,547,265


SHORT-TERM INVESTMENTS – 18.9%
State Street Navigator Securities Lending Prime Portfolio(e)		4,238,526		4,238,526
Federal Home Loan Mortgage Corp., Discount Notes, 2.050%, 11/04/08(f)		200,000		199,613
Federal National Mortgage Association, Discount Notes, 2.380%, 10/27/2008(f)		445,000		444,839
Federal National Mortgage Association, Discount Notes, 2.250%, 10/28/08(f)		970,000		968,363
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/08 at 1.300% to be repurchased at $352,013 on 10/01/08 collateralized by $360,000 Federal Home Loan Bank, 3.750% due 8/18/09 valued at $363,000 including accrued interest (Note 2h of Notes to Financial Statements)		352,000		352,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $6,202,737)				6,203,341


TOTAL INVESTMENTS – 112.2%
(Identified Cost $38,634,810)(a)				36,750,606
Other Assets Less Liabilities—(12.2)%				(4,002,762)


NET ASSETS – 100.0%			$	32,747,844


(‡) Principal amount stated in U.S. dollars unless otherwise noted.
(†) See Note 2a of Notes to Financial Statements.
(a) Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $38,698,411 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	113,836
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(2,061,641)

Net unrealized depreciation			$	(1,947,805)

(b)

Variable rate security. Rate as of September 30, 2008 is disclosed.

(c)

All or a portion of this security was on loan to brokers at September 30, 2008.

(d)

All or a portion of this security is held as collateral for open futures contracts.

(e)

Represents investment of securities lending collateral.

(f)

Rate represents discount rate at time of purchase.

GMTN

Global Medium Term Note

MTN

Medium Term Note

REITs

Real Estate Investment Trusts

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Intermediate Duration Fixed Income Fund – continued

STRIPS

Separate Trading of Registered Interest and Principal of Securities

Key to Abbreviations: SGD Singapore Dollar

At September 30, 2008 open futures contracts purchased were as follows:

Futures

Expiration
Date

Contracts

Notional

Value

Unrealized
Depreciation

10 YearU.S. Treasury Note

12/19/2008

1,031,625

(8,735

)

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Mortgage Related	27.9	%
Treasuries	12.3
Banking	6.7
Technology	4.2
Brokerage	3.5
REITs	3.4
Non-Captive Diversified	3.2
Asset-Backed Securities	2.3
Wirelines	2.3
ABS Credit Card	2.2
Electric	2.2
Media Cable	2.2
Healthcare	2.1
Other Investments, less than 2% each	18.8
Short-Term Investments	18.9

Total Investments	112.2
Other assets less liabilities (including variation margin on open Futures Contracts)	(12.2	)

Net Assets	100.0	%

See accompanying notes to financial statements.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Investment Grade Fixed Income Fund


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – 91.6% of Net Assets

NON-CONVERTIBLE BONDS – 90.6%

ABS Car Loan – 1.1%
ARG Funding Corp., Series 2005-2A, Class A5, 3.348%, 5/20/2011, 144A(b)		$	3,245,000	$	2,981,481

ABS Credit Card – 0.3%
World Financial Network Credit Card, Series 2008-B, Class M, 7.800%, 10/15/2013			732,000		727,464

Aerospace & Defense – 0.1%
Boeing Capital Corp., 6.500%, 2/15/2012			165,000		175,335

Airlines – 1.7%
Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 8/10/2022			2,344,635		1,594,352
Qantas Airways Ltd., 6.050%, 4/15/2016, 144A			3,455,000		3,162,918

					4,757,270

Asset-Backed Securities – 1.1%
Community Program Loan Trust, Series 1987-A, Class A5, 4.500%, 4/01/2029			2,500,000		2,220,500
Countrywide Asset-Backed Certificates, Series 2006-S1, Class A2, 5.549%, 8/25/2021			326,825		296,964
Countrywide Asset-Backed Certificates, Series 2006-S3, Class A3, 6.287%, 6/25/2021			455,000		182,000
Countrywide Asset-Backed Certificates, Series 2006-S4, Class A3, 5.804%, 7/25/2034			499,938		324,959
Navistar Financial Corp. Owner Trust, Series 2005-A, Class A3, 4.220%, 2/15/2010			21,841		21,843

					3,046,266

Automotive – 0.4%
Ford Motor Co., 6.375%, 2/01/2029			2,665,000		986,050
Ford Motor Credit Co. LLC, 7.375%, 10/28/2009			150,000		120,595
General Motors Corp., 8.250%, 7/15/2023			50,000		19,625

					1,126,270

Banking – 6.1%
BAC Capital Trust VI, 5.625%, 3/08/2035			1,045,000		797,752
Barclays Financial LLC, 4.060%, 9/16/2010, 144A	KRW		940,000,000		792,530
Barclays Financial LLC, 4.160%, 2/22/2010, 144A	THB		70,000,000		2,044,182
Barclays Financial LLC, 4.460%, 9/23/2010, 144A	KRW		1,950,000,000		1,656,518
Barclays Financial LLC, EMTN, 4.100%, 3/22/2010, 144A	THB		17,000,000		496,043
BNP Paribas SA, EMTN, Zero Coupon Bond, 6/13/2011, 144A	IDR		7,484,000,000		572,927
Citibank NA, 15.000%, 7/02/2010, 144A	BRL		4,000,000		2,143,759
Countrywide Financial Corp., 6.250%, 5/15/2016(c)			230,000		163,742
JPMorgan Chase & Co., Zero Coupon Bond, 5/17/2010, 144A	BRL		8,035,000		3,396,632
JPMorgan Chase & Co., Zero Coupon Bond, 3/28/2011, 144A	IDR		8,972,574,000		707,149
JPMorgan Chase & Co., Zero Coupon Bond, 3/28/2011, 144A	IDR		5,376,000,000		423,125
JPMorgan Chase & Co., 4.750%, 5/01/2013			60,000		55,838

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Investment Grade Fixed Income Fund – continued


		Principal Amount (‡)	Value (†)


BONDS AND NOTES – continued

Banking – continued
JPMorgan Chase London, Zero Coupon Bond, 10/21/2010, 144A	IDR	9,533,078,500	$	795,299
Rabobank Nederland, 10.250%, 9/10/2009, 144A	ISK	65,000,000		604,217
Rabobank Nederland, EMTN, 14.000%, 1/28/2009, 144A	ISK	220,000,000		2,096,245
Washington Mutual Finance Corp., 6.875%, 5/15/2011		135,000		130,062

				16,876,020

Brokerage – 3.9%
Bear Stearns Co., Inc. (The), 5.550%, 1/22/2017		230,000		197,510
Goldman Sachs Group LP, 5.000%, 10/01/2014		1,725,000		1,438,766
Goldman Sachs Group, Inc. (The), 5.150%, 1/15/2014		870,000		714,516
Lehman Brothers Holdings, Inc., 6.875%, 7/17/2037(d)		2,030,000		2,538
Lehman Brothers Holdings, Inc., MTN, (fixed rate to 5/03/2027, variable rate thereafter), 6.000%, 5/03/2032(d)		155,000		194
Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		3,770,000		2,617,194
Merrill Lynch & Co., Inc., Series C, MTN, 5.000%, 1/15/2015		235,000		192,282
Morgan Stanley, 3.875%, 1/15/2009		2,630,000		2,419,647
Morgan Stanley, 4.750%, 4/01/2014		245,000		129,873
Morgan Stanley, 5.375%, 10/15/2015		1,300,000		805,733
Morgan Stanley, EMTN, 5.450%, 1/09/2017		260,000		161,280
Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		800,000		495,944
Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		260,000		162,876
Morgan Stanley, Series F, MTN, 6.625%, 4/01/2018		2,245,000		1,485,721

				10,824,074

Building Materials – 0.2%
Masco Corp., 5.850%, 3/15/2017		500,000		421,989

Chemicals – 1.8%
Lubrizol Corp., 6.500%, 10/01/2034		2,005,000		1,802,250
Methanex Corp., 6.000%, 8/15/2015		980,000		862,047
PPG Industries, Inc., 6.650%, 3/15/2018		2,410,000		2,380,037

				5,044,334

Distributors – 0.7%
Equitable Resources, Inc., 6.500%, 4/01/2018(c)		2,150,000		2,051,293

Diversified Manufacturing – 0.1%
General Electric Co., 5.000%, 2/01/2013		310,000		285,515

Electric – 5.1%
AmerenEnergy Generating Co., Series H, 7.000%, 4/15/2018		2,800,000		2,611,162
Baltimore Gas & Electric Co., 5.200%, 6/15/2033		500,000		340,262
Bruce Mansfield Unit, 6.850%, 6/01/2034(e)		1,550,000		1,545,660
Cleveland Electric Illuminating Co. (The), 5.950%, 12/15/2036		960,000		763,207
Commonwealth Edison Co., 4.700%, 4/15/2015		555,000		500,432


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Electric – continued
Commonwealth Edison Co., 4.750%, 12/01/2011(e)		$	41,000	$	38,991
Commonwealth Edison Co., 5.875%, 2/01/2033			1,180,000		967,045
Dominion Resources, Inc., 5.950%, 6/15/2035			385,000		318,507
Duke Energy Carolinas, 4.200%, 10/01/2008			460,000		460,000
Empresa Nacional de Electricidad SA (Endesa-Chile), 7.875%, 2/01/2027			1,000,000		1,047,290
Illinois Power Co., 6.250%, 4/01/2018			3,385,000		3,117,399
MidAmerican Energy Holdings Co., 6.125%, 4/01/2036			445,000		374,281
MidAmerican Energy Holdings Co., 6.500%, 9/15/2037			1,035,000		908,068
Nisource Finance Corp., 6.150%, 3/01/2013			195,000		188,745
Nisource Finance Corp., 6.400%, 3/15/2018			1,255,000		1,124,717

					14,305,766

Entertainment – 1.0%
Time Warner, Inc., 6.500%, 11/15/2036			410,000		311,358
Time Warner, Inc., 6.625%, 5/15/2029			870,000		694,887
Time Warner, Inc., 6.950%, 1/15/2028			375,000		312,645
Time Warner, Inc., 7.625%, 4/15/2031			245,000		212,748
Time Warner, Inc., 7.700%, 5/01/2032			160,000		139,798
Viacom, Inc., Class B, 6.875%, 4/30/2036			1,325,000		1,062,226

					2,733,662

Food & Beverage – 1.4%
Anheuser-Busch Cos., Inc., 5.950%, 1/15/2033			995,000		769,156
Anheuser-Busch Cos., Inc., 6.450%, 9/01/2037			1,270,000		1,028,917
Cia Brasileira de Bebidas, 8.750%, 9/15/2013			1,025,000		1,095,468
Kraft Foods, Inc., 6.250%, 6/01/2012			210,000		211,100
Kraft Foods, Inc., 6.500%, 11/01/2031			960,000		834,626

					3,939,267

Foreign Local Governments – 0.8%
Province of Alberta, 5.000%, 12/16/2008	CAD		2,000,000		1,889,857
Province of Alberta, 5.930%, 9/16/2016	CAD		411,524		418,906

					2,308,763

Government Owned-No Guarantee – 1.8%
Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A			2,565,000		2,500,647
DP World Ltd., 6.850%, 7/02/2037, 144A			3,500,000		2,591,260

					5,091,907

Healthcare – 1.3%
Covidien International Finance SA, 6.000%, 10/15/2017			900,000		889,194
Covidien International Finance SA, 6.550%, 10/15/2037			900,000		865,255
HCA, Inc., 5.750%, 3/15/2014			1,020,000		795,600
HCA, Inc., 6.250%, 2/15/2013			195,000		162,825
HCA, Inc., 6.375%, 1/15/2015			95,000		74,813
HCA, Inc., 6.500%, 2/15/2016			55,000		43,588
HCA, Inc., 6.750%, 7/15/2013			30,000		25,200
HCA, Inc., 7.050%, 12/01/2027			100,000		67,529
HCA, Inc., 7.190%, 11/15/2015			190,000		151,683

100

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Investment Grade Fixed Income Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Healthcare – continued
HCA, Inc., 7.500%, 12/15/2023		$	75,000	$	54,941
HCA, Inc., 7.690%, 6/15/2025			175,000		130,067
HCA, Inc., 8.360%, 4/15/2024			305,000		236,399
HCA, Inc., MTN, 7.580%, 9/15/2025			10,000		7,367
HCA, Inc., MTN, 7.750%, 7/15/2036			305,000		216,520

					3,720,981

Home Construction – 2.7%
Centex Corp., 5.250%, 6/15/2015			380,000		279,300
Lennar Corp., Series B, 5.600%, 5/31/2015			1,250,000		812,500
Lennar Corp., Series B, 6.500%, 4/15/2016			770,000		519,750
Pulte Homes, Inc., 5.200%, 2/15/2015			1,265,000		1,012,000
Pulte Homes, Inc., 6.000%, 2/15/2035(c)			3,340,000		2,388,100
Pulte Homes, Inc., 6.375%, 5/15/2033			1,455,000		1,062,150
Toll Brothers Finance Corp., 5.150%, 5/15/2015			1,725,000		1,458,858

					7,532,658

Hybrid ARMS – 0.5%
Federal National Mortgage Association, 6.039%, 2/01/2037(b)			412,210		415,010
Indymac Index Mortgage Loan Trust, Series 2006-AR25, Class 3A1, 6.321%, 9/25/2036(b)			567,671		380,315
Morgan Stanley Mortgage Loan Trust, Series 2005-3AR, Class 5A, 5.588%, 7/25/2035(b)			425,372		372,135
Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 3A2, 4.997%, 10/25/2035(b)			323,046		280,375

					1,447,835

Independent Energy – 2.8%
Anadarko Petroleum Corp., 5.950%, 9/15/2016			1,365,000		1,254,592
Anadarko Petroleum Corp., 6.450%, 9/15/2036			1,215,000		952,618
Apache Corp., 6.000%, 1/15/2037			1,940,000		1,639,735
Questar Market Resources, Inc., 6.800%, 4/01/2018(c)			3,365,000		3,392,923
Talisman Energy, Inc., 5.850%, 2/01/2037			15,000		11,260
XTO Energy, Inc., 6.100%, 4/01/2036			65,000		53,821
XTO Energy, Inc., 6.750%, 8/01/2037			435,000		385,983

					7,690,932

Local Authorities – 2.7%
Manitoba (Province of), GMTN, 6.375%, 9/01/2015	NZD		4,635,000		3,035,926
Quebec Province, Series QC, 6.750%, 11/09/2015	NZD		1,185,000		795,574
Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011	AUD		1,735,000		1,378,513
Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(e)			2,880,000		2,230,416

					7,440,429

Media Cable – 2.8%
Comcast Corp., 5.650%, 6/15/2035			2,090,000		1,553,566
Comcast Corp., 6.450%, 3/15/2037			1,230,000		992,072
Comcast Corp., 6.500%, 11/15/2035			1,570,000		1,310,831
Comcast Corp., 6.950%, 8/15/2037			1,925,000		1,641,935
Time Warner Cable, Inc., 6.750%, 7/01/2018			2,500,000		2,334,825

					7,833,229

101


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Media Non-Cable – 0.9%
Clear Channel Communications, Inc., 5.750%, 1/15/2013	$	250,000	$	90,000
News America, Inc., 6.200%, 12/15/2034		950,000		757,425
News America, Inc., 6.400%, 12/15/2035		1,980,000		1,663,261

				2,510,686

Metals & Mining – 0.0%
Teck Cominco Ltd., 7.000%, 9/15/2012		100,000		101,207

Mortgage Related – 6.8%
Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A4, 5.1800%, 9/10/2047(b)		160,000		145,218
Banc of America Commercial Mortgage, Inc., Series 2006-1, Class A2, 5.334%, 9/10/2045, Class A		220,000		212,707
Bear Stearns Commercial Mortgage Securities, Series 2005-PW10, Class A2, 5.270%, 12/11/2040		280,000		274,158
Bear Stearns Commercial Mortgage Securities, Series 2006-T24, Class A4, 5.537%, 10/12/2041		360,000		320,419
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD2, Class A2, 5.408%, 1/15/2046		155,000		150,058
Commercial Mortgage Pass Through Certificates, Series 2006-C7, Class A4, 5.7680%, 6/10/2046(b)		480,000		433,844
CS First Boston Mortgage Securities Corp., Series 2005-7, Class 3A1, 5.000%, 8/25/2020		324,163		289,417
Federal Home Loan Mortgage Corp., 4.000%, 7/01/2019		326,653		312,560
Federal Home Loan Mortgage Corp., 4.500%, 4/01/2019		653,185		640,721
Federal Home Loan Mortgage Corp., 5.000%, 12/14/2018(c)		281,000		264,128
Federal Home Loan Mortgage Corp., 5.000%, 5/01/2034		208,212		203,334
Federal Home Loan Mortgage Corp., 5.500%, 8/01/2033		527,216		525,988
Federal Home Loan Mortgage Corp., 5.500%, 2/01/2037		600,382		597,764
Federal Home Loan Mortgage Corp., 6.000%, 2/01/2020		225,748		229,932
Federal Home Loan Mortgage Corp., 6.000%, 6/01/2035		419,216		426,342
Federal Home Loan Mortgage Corp., 6.500%, 10/15/2008		2,032		2,030
Federal Home Loan Mortgage Corp., 10.000%, 8/01/2018		3,573		4,100
Federal Home Loan Mortgage Corp., 10.000%, 10/01/2018		2,326		2,663
Federal Home Loan Mortgage Corp., 10.250%, 12/01/2009		1,897		1,916
Federal Home Loan Mortgage Corp., Series 2912, Class EH, 5.500%, 1/15/2035		675,000		655,777

102

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Investment Grade Fixed Income Fund – continued


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Mortgage Related – continued
Federal National Mortgage Association, 4.000%, 1/01/2020	$	176,410	$	168,799
Federal National Mortgage Association, 4.500%, 3/01/2035		268,501		254,876
Federal National Mortgage Association, 4.500%, 9/01/2035		372,293		352,712
Federal National Mortgage Association, 5.000%, 2/01/2018		109,152		109,648
Federal National Mortgage Association, 5.000%, 6/01/2020		314,857		313,925
Federal National Mortgage Association, 5.000%, 4/01/2034		200,359		195,671
Federal National Mortgage Association, 5.000%, 5/01/2034		203,103		198,350
Federal National Mortgage Association, 5.000%, 5/01/2035		368,162		359,317
Federal National Mortgage Association, 5.000%, 6/01/2035		259,583		253,347
Federal National Mortgage Association, 5.000%, 6/01/2035		149,886		146,285
Federal National Mortgage Association, 5.000%, 8/01/2035		365,977		357,184
Federal National Mortgage Association, 5.500%, 9/01/2016		73,161		74,545
Federal National Mortgage Association, 5.500%, 8/01/2019		47,785		48,435
Federal National Mortgage Association, 5.500%, 12/01/2032		118,995		119,090
Federal National Mortgage Association, 5.500%, 1/01/2033		256,362		256,566
Federal National Mortgage Association, 5.500%, 6/01/2033		383,498		384,071
Federal National Mortgage Association, 5.500%, 7/01/2033		567,992		568,089
Federal National Mortgage Association, 5.500%, 9/01/2034		225,384		225,211
Federal National Mortgage Association, 5.500%, 3/01/2035		76,747		76,688
Federal National Mortgage Association, 5.500%, 3/01/2035		64,570		64,480
Federal National Mortgage Association, 5.500%, 5/01/2035		76,926		76,819
Federal National Mortgage Association, 5.500%, 8/01/2035		146,994		146,789
Federal National Mortgage Association, 5.500%, 12/01/2035		322,818		322,368
Federal National Mortgage Association, 5.500%, 1/01/2036		17,425		17,401
Federal National Mortgage Association, 5.500%, 2/01/2036		7,358		7,348
Federal National Mortgage Association, 5.500%, 4/01/2036		406,887		406,321
Federal National Mortgage Association, 5.500%, 6/01/2036		95,794		95,616

103


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Mortgage Related – continued
Federal National Mortgage Association, 5.736%, 9/01/2036(b)	$	435,487	$	447,098
Federal National Mortgage Association, 6.000%, 12/01/2018		28,175		28,864
Federal National Mortgage Association, 6.000%, 12/01/2020		34,874		35,567
Federal National Mortgage Association, 6.000%, 3/01/2021		326,605		334,212
Federal National Mortgage Association, 6.000%, 10/01/2028		29,189		29,812
Federal National Mortgage Association, 6.000%, 10/01/2033		623,460		634,447
Federal National Mortgage Association, 6.500%, 2/01/2011		3,928		4,073
Federal National Mortgage Association, 6.500%, 10/01/2031		92,200		95,352
Federal National Mortgage Association, 6.500%, 10/01/2033		44,397		45,790
Federal National Mortgage Association, 6.500%, 10/01/2033		86,904		89,630
Federal National Mortgage Association, 6.500%, 10/01/2033		63,633		65,629
Federal National Mortgage Association, 6.500%, 11/01/2033		89,344		92,147
Federal National Mortgage Association, 7.000%, 4/25/2020		42,811		44,352
Government National Mortgage Association, 6.500%, 2/20/2028		144,071		148,185
Government National Mortgage Association, 7.000%, 11/20/2025		5,698		5,986
Government National Mortgage Association, 10.000%, 5/15/2018		15,321		17,363
Government National Mortgage Association, 10.000%, 8/15/2018		9,768		11,117
Government National Mortgage Association, 10.000%, 12/15/2018		47,908		54,529
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A2, 5.117%, 4/10/2037		485,000		475,014
GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, 4.751%, 7/10/2039		805,000		722,237
GS Mortgage Securities Corp. II, Series 2006-GG8, Class A4, 5.560%, 11/10/2039		350,000		309,645
JP Morgan Chase Commercial Mortgage Securities Corp.,Series 2006-LDP7, Class A4, 5.8754%, 4/15/2045(b)		600,000		542,544
LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A5, 4.739%, 7/15/2030		480,000		427,268
LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class A4, 5.883%, 6/15/2038(b)		180,000		164,417
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A4, 5.372%, 9/15/2039		390,000		341,375
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A2, 5.303%, 2/15/2040		915,000		851,582

104

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Investment Grade Fixed Income Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Mortgage Related – continued
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-1, Class A2, 5.439%, 2/12/2039(b)		$	335,000	$	324,493
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4, 5.9093%, 6/12/2046(b)			235,000		214,533
Morgan Stanley Capital I, Series 2005-HQ6, Class A4A, 4.989%, 8/13/2042			350,000		315,113
Morgan Stanley Capital I, Series 2005-T19, Class A4A, 4.890%, 6/12/2047			425,000		379,915
Residential Accredit Loans, Inc., Series 2006-QS18, Class 3A3, 5.750%, 12/25/2021			332,240		272,176

					18,817,492

Non-Captive Consumer – 1.6%
American General Finance Corp., Series H, MTN, 5.375%, 10/01/2012			45,000		24,596
American General Finance Corp., Series J, MTN, 6.900%, 12/15/2017			2,815,000		1,305,293
Countrywide Financial Corp., Series A, MTN, 3.333%, 12/19/2008(b)(c)			50,000		49,434
Countrywide Home Loans, Inc., Series L, MTN, 4.000%, 3/22/2011			144,000		123,891
HSBC Finance Corp., 8.000%, 7/15/2010			205,000		209,192
Residential Capital LLC, 8.500%, 6/01/2012			380,000		76,000
Residential Capital LLC, 8.875%, 6/30/2015(c)			155,000		31,000
SLM Corp., Series A, MTN, 5.000%, 4/15/2015			70,000		42,000
SLM Corp., Series A, MTN, 5.375%, 1/15/2013			680,000		445,400
SLM Corp., Series A, MTN, 6.500%, 6/15/2010	NZD		970,000		538,733
SLM Corp., Series A, MTN, 8.450%, 6/15/2018			2,385,000		1,621,800

					4,467,339

Non-Captive Diversified – 3.1%
CIT Group Funding Co. of Canada, 5.200%, 6/01/2015			255,000		125,228
CIT Group, Inc., 5.125%, 9/30/2014			510,000		251,510
CIT Group, Inc., 5.400%, 2/13/2012			30,000		17,246
CIT Group, Inc., 5.400%, 1/30/2016			60,000		29,040
CIT Group, Inc., 5.650%, 2/13/2017			215,000		104,913
CIT Group, Inc., 5.800%, 7/28/2011			240,000		155,958
CIT Group, Inc., 5.800%, 10/01/2036			610,000		278,998
CIT Group, Inc., 5.850%, 9/15/2016			15,000		7,275
CIT Group, Inc., Series A, GMTN, 6.000%, 4/01/2036			925,000		379,250
CIT Group, Inc., EMTN, 4.650%, 9/19/2016	EUR		350,000		241,486
CIT Group, Inc., GMTN, 5.000%, 2/13/2014			335,000		189,499
CIT Group, Inc., GMTN, 5.000%, 2/01/2015			55,000		27,187
General Electric Capital Corp., 6.500%, 9/28/2015	NZD		5,650,000		3,368,235
General Electric Capital Corp., Series A, MTN, 6.000%, 6/15/2012			735,000		709,403
General Electric Capital Corp., EMTN, 6.750%, 9/26/2016	NZD		470,000		279,724
General Electric Capital Corp., GMTN, 7.625%, 12/10/2014	NZD		405,000		263,818

105


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Non-Captive Diversified – continued
GMAC LLC, 5.625%, 5/15/2009(c)		$	1,330,000	$	950,314
GMAC LLC, 6.000%, 12/15/2011			1,205,000		535,790
International Lease Finance Corp., 6.375%, 3/15/2009			725,000		668,598

					8,583,472

Oil Field Services – 0.1%
Weatherford International Ltd., 6.500%, 8/01/2036			195,000		168,098

Paper – 1.0%
Georgia-Pacific LLC, 7.250%, 6/01/2028			1,500,000		1,185,000
International Paper Co., 4.000%, 4/01/2010			500,000		485,145
International Paper Co., 4.250%, 1/15/2009			1,000,000		993,827

					2,663,972

Pharmaceuticals – 0.1%
Elan Financial PLC, 7.750%, 11/15/2011			60,000		54,300
Elan Financial PLC, 8.875%, 12/01/2013			170,000		142,800

					197,100

Pipelines – 2.9%
DCP Midstream LP, 6.450%, 11/03/2036, 144A			635,000		507,943
El Paso Corp., 6.950%, 6/01/2028			350,000		276,358
Enterprise Products Operating LP, 6.300%, 9/15/2017			680,000		634,159
Kinder Morgan Energy Partners LP, 5.125%, 11/15/2014			145,000		132,364
Kinder Morgan Energy Partners LP, 5.950%, 2/15/2018			5,300,000		4,720,927
NGPL Pipeco LLC, 7.119%, 12/15/2017, 144A			965,000		915,910
Southern Natural Gas Co., 5.900%, 4/01/2017, 144A			810,000		716,844
Spectra Energy Capital LLC, 5.500%, 3/01/2014(c)			230,000		219,247

					8,123,752

Property & Casualty Insurance – 1.6%
Allstate Corp., 5.950%, 4/01/2036			470,000		383,144
Marsh & McLennan Cos., Inc., 5.375%, 7/15/2014			65,000		60,193
Marsh & McLennan Cos., Inc., 5.750%, 9/15/2015			1,842,000		1,726,672
Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033(c)			2,360,000		1,976,715
MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A(b)			60,000		31,800
Progressive Corp., 7.000%, 10/01/2013			150,000		157,902
Willis North America, Inc., 6.200%, 3/28/2017			225,000		195,628

					4,532,054

Railroads – 0.9%
Canadian Pacific Railway Co., 5.950%, 5/15/2037			115,000		94,135
Canadian Pacific Railway Ltd., MTN, 4.900%, 6/15/2010, 144A	CAD		1,000,000		933,822
CSX Corp., 6.000%, 10/01/2036(c)			210,000		159,597

106

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Investment Grade Fixed Income Fund – continued


		Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Railroads – continued
CSX Corp., 6.250%, 3/15/2018		$	670,000	$	606,413
Missouri Pacific Railroad Co., 5.000%, 1/01/2045(e)			190,000		114,000
Union Pacific Corp., 3.875%, 2/15/2009			325,000		320,251
Union Pacific Corp., 5.375%, 6/01/2033			415,000		326,957

					2,555,175

REITs – 1.8%
Camden Property Trust, 5.700%, 5/15/2017			640,000		565,746
Colonial Realty LP, 4.800%, 4/01/2011			1,840,000		1,747,998
Colonial Realty LP, 5.500%, 10/01/2015			290,000		249,203
Duke Realty LP, 5.950%, 2/15/2017			90,000		80,564
Equity One, Inc., 6.000%, 9/15/2017			1,000,000		801,522
ERP Operating LP, 5.125%, 3/15/2016			30,000		25,128
ERP Operating LP, 5.750%, 6/15/2017			180,000		151,587
Highwoods Properties, Inc., 5.850%, 3/15/2017			80,000		64,172
Highwoods Properties, Inc., 7.500%, 4/15/2018			1,075,000		952,676
Prologis, 5.625%, 11/15/2015			40,000		34,972
Prologis, 5.750%, 4/01/2016			35,000		30,497
Realty Income Corp., 6.750%, 8/15/2019			500,000		451,097
Simon Property Group LP, 5.750%, 12/01/2015			55,000		51,979

					5,207,141

Retailers – 1.1%
J.C. Penney Corp., Inc., 6.375%, 10/15/2036			230,000		174,939
Lowe’s Cos., Inc., 6.650%, 9/15/2037			975,000		935,179
Macy’s Retail Holdings, Inc., 5.350%, 3/15/2012			355,000		326,916
Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037			2,275,000		1,647,778

					3,084,812

Sovereigns – 12.1%
Canadian Government, 2.750%, 12/01/2010	CAD		5,410,000		5,064,990
Canadian Government, 3.750%, 6/01/2012	CAD		3,340,000		3,203,858
Canadian Government, 4.000%, 6/01/2016	CAD		1,000,000		965,713
Canadian Government, 4.250%, 9/01/2009	CAD		4,070,000		3,874,120
Canadian Government, 5.250%, 6/01/2012	CAD		11,565,000		11,656,824
Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023	MXN		140,000(††)		1,228,618
Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012	MXN		460,000(††)		4,304,774
New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010	AUD		2,625,000		2,122,942
New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012	AUD		1,355,000		1,074,421

					33,496,260

Supranational – 4.1%
European Investment Bank, 4.600%, 1/30/2037, 144A	CAD		1,900,000		1,625,761
Inter-American Development Bank, EMTN, Zero Coupon Bond, 5/11/2009	BRL		9,000,000		4,209,365
Inter-American Development Bank, EMTN, Zero Coupon Bond, 9/23/2013	IDR		45,300,000,000		2,741,058
Inter-American Development Bank, EMTN, 6.000%, 12/15/2017	NZD		4,375,000		2,828,988

					11,405,172

107


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Technology – 4.4%
Avnet, Inc., 6.000%, 9/01/2015	$	1,970,000	$	1,897,926
Avnet, Inc., 6.625%, 9/15/2016		270,000		262,955
Corning, Inc., 6.850%, 3/01/2029		10,000		8,833
Corning, Inc., 7.250%, 8/15/2036		1,565,000		1,387,324
Dun & Bradstreet Corp., 6.000%, 4/01/2013		1,970,000		1,956,257
International Business Machines Corp., 4.750%, 11/29/2012		795,000		795,843
Intuit, Inc., 5.750%, 3/15/2017		635,000		561,610
KLA-Tencor Corp., 6.900%, 5/01/2018		1,370,000		1,273,826
Koninklijke (Royal) Philips Electronics N.V., 6.875%, 3/11/2038		2,745,000		2,719,848
Motorola, Inc., 5.220%, 10/01/2097		1,000,000		558,532
Motorola, Inc., 6.500%, 9/01/2025		190,000		145,761
Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		500,000		528,974

				12,097,689

Textile – 0.2%
Kellwood Co., 7.625%, 10/15/2017(e)		1,000,000		550,000

Tobacco – 0.3%
Reynolds American, Inc., 6.750%, 6/15/2017		735,000		686,791
Reynolds American, Inc., 7.250%, 6/15/2037		195,000		186,607

				873,398

Transportation Services – 1.3%
APL Ltd., 8.000%, 1/15/2024(e)		100,000		75,000
Atlas Air, Inc., Series B, 7.680%, 1/02/2014(f)		3,429,237		3,429,237

				3,504,237

Treasuries – 0.1%
U.S. Treasury Notes, 4.250%, 11/15/2013(c)		330,000		350,883

Wireless – 1.1%
America Movil SAB de CV, 4.125%, 3/01/2009		500,000		496,987
Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		140,000		95,200
Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		470,000		314,900
Sprint Capital Corp., 6.875%, 11/15/2028		359,000		240,530
Sprint Nextel Corp., 6.000%, 12/01/2016		366,000		281,820
Telefonica Emisones SAU, 6.421%, 6/20/2016		185,000		173,698
Vodafone Group PLC, 6.150%, 2/27/2037		1,725,000		1,385,365

				2,988,500

Wirelines – 4.7%
AT&T Corp., 6.500%, 3/15/2029		1,310,000		1,096,706
AT&T, Inc., 6.150%, 9/15/2034		545,000		454,508
AT&T, Inc., 6.500%, 9/01/2037		965,000		820,906
BellSouth Corp., 6.000%, 11/15/2034(c)		1,770,000		1,433,700
BellSouth Corp., 6.550%, 6/15/2034		105,000		90,020
GTE Corp., 6.940%, 4/15/2028		50,000		42,426
New England Telephone & Telegraph, 7.875%, 11/15/2029		570,000		514,807

108

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Investment Grade Fixed Income Fund – continued


	Principal Amount (‡)		Value (†)


BONDS AND NOTES – continued

Wirelines – continued
Qwest Capital Funding, Inc., 6.500%, 11/15/2018	$	500,000	$	363,750
Telefonica Emisiones SAU, 7.045%, 6/20/2036		4,075,000		3,685,634
Verizon Communications, 5.850%, 9/15/2035		3,715,000		2,904,870
Verizon Maryland, Inc., 5.125%, 6/15/2033		290,000		196,200
Verizon New York, Inc., Series B, 7.375%, 4/01/2032		1,110,000		968,952
Verizon Virginia, Inc., Series A, 4.625%, 3/15/2013		505,000		464,756

				13,037,235


TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $279,157,747)				251,678,414


CONVERTIBLE BONDS – 0.5%

Non-Captive Consumer – 0.1%
Countrywide Financial Corp., Series A, Zero Coupon Bond, 4/15/2037(c)		99,000		97,020
Countrywide Financial Corp., Series B, 0.554%, 5/15/2037(b)		265,000		241,150

				338,170

Pharmaceuticals – 0.2%
Vertex Pharmaceuticals, Inc., 4.750%, 2/15/2013		298,000		449,607
Watson Pharmaceuticals, Inc., 1.750%, 3/15/2023(c)		125,000		116,563

				566,170

Technology – 0.2%
Avnet, Inc., 2.000%, 3/15/2034		430,000		428,388
Maxtor Corp., 5.750%, 3/01/2012(e)		54,000		49,680
Richardson Electronics Ltd., 7.750%, 12/15/2011		44,000		33,000

				511,068

Transportation Services – 0.0%
Builders Transportation, Inc., 6.500%, 5/01/2011(g)		129,000		—


TOTAL CONVERTIBLE BONDS
(Identified Cost $1,331,262)				1,415,408


MUNICIPALS – 0.5%

Michigan – 0.3%
Michigan Tobacco Settlement Finance Authority, 7.309%, 6/01/2034(e)		1,085,000		934,402

Ohio – 0.2%
Buckeye Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/01/2047(e)		750,000		567,030


TOTAL MUNICIPALS
(Identified Cost $1,813,181)				1,501,432


TOTAL BONDS AND NOTES
(Identified Cost $282,302,190)				254,595,254

109


	Shares	Value (†)

PREFERRED STOCKS – 0.9%

NON-CONVERTIBLE PREFERRED STOCKS – 0.4%

Banking – 0.2%
Bank of America Corp., 7.250%	640	$	536,320

Capital Markets – 0.0%
Lehman Brothers Holdings, Inc., 7.250%(d)(f)	860		860
Lehman Brothers Holdings, Inc., 7.950%(d)	570		34

			894

Diversified Financial Services – 0.0%
CIT Group, Inc., 6.350%(c)	12,023		93,178

Electric Utilities – 0.1%
Connecticut Light & Power Co., 4.400%	263		9,797
MDU Resources Group, Inc., 5.100%	307		30,738
Public Service Electric & Gas Co., 4.080%(c)	400		29,100
San Diego Gas & Electric Co., 4.500%	100		1,610
Union Electric Co., 4.500%	3,160		235,420

			306,665

Thrifts & Mortgage Finance – 0.1%
Federal Home Loan Mortgage Corp., 5.000%(f)(i)	1,850		3,330
Federal Home Loan Mortgage Corp., 5.570%(f)(i)	28,450		28,166
Federal Home Loan Mortgage Corp., 5.660%(f)(i)	8,500		10,625
Federal Home Loan Mortgage Corp., 5.700%(f)(i)	2,900		5,423
Federal Home Loan Mortgage Corp., 5.790%(f)(i)	5,400		10,800
Federal Home Loan Mortgage Corp., 5.810%(f)(i)	1,900		3,325
Federal Home Loan Mortgage Corp., 5.900%(f)(i)	4,200		5,250
Federal Home Loan Mortgage Corp., 6.000%(f)(i)	2,400		4,320
Federal Home Loan Mortgage Corp., 6.420%(f)(i)	1,700		3,060
Federal Home Loan Mortgage Corp., 6.550%(f)(i)	11,075		11,961
Federal Home Loan Mortgage Corp., 8.375%(c)(f)(i)	39,400		64,222
Federal National Mortgage Association, 4.750%(c)(i)	3,650		11,315
Federal National Mortgage Association, 5.125%(i)	1,300		4,550
Federal National Mortgage Association, 5.375%(i)	2,600		8,580
Federal National Mortgage Association, 5.810%(i)	1,050		3,780
Federal National Mortgage Association, 6.750%(i)	1,650		2,970
Federal National Mortgage Association, 8.250%(c)(i)	53,575		116,793

			298,470


TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Identified Cost $4,163,108)			1,235,527


CONVERTIBLE PREFERRED STOCKS – 0.5%

Consumer Products – 0.5%
Newell Financial Trust I, 5.250%, 12/01/2027
(Identified Cost $1,294,828)	33,050		1,274,491


TOTAL PREFERRED STOCKS
(Identified Cost $5,457,936)			2,510,018

110

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Investment Grade Fixed Income Fund – continued


	Shares/Principal Amount (‡)		Value (†)


SHORT-TERM INVESTMENTS – 10.0%
State Street Navigator Securities Lending Prime Portfolio(h)		10,190,325	$	10,190,325
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $17,525,633 on 10/01/2008 collateralized by $17,570,000 Federal National Mortgage Association, 4.330% due 7/28/2011 with a value of $17,877,475 including accrued interest (Note 2h of Notes to Financial Statements)	$	17,525,000		17,525,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $27,715,325)				27,715,325


TOTAL INVESTMENTS – 102.5%
(Identified Cost $315,475,451)(a)				284,820,597
Other Assets Less Liabilities—(2.5)%				(6,957,779)


NET ASSETS – 100.0%			$	277,862,818


(‡) Principal amount stated in U.S. dollars unless otherwise noted.
(†) See Note 2a of Notes to Financial Statements.
(††) Amount shown represents units. One unit represents a principal amount of 100.
(a) Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $315,654,322 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	4,831,513
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(35,665,238)

Net unrealized depreciation			$	(30,833,725)

(b)

Variable rate security. Rate as of September 30, 2008 is disclosed.

(c)

All or a portion of this security was on loan to brokers at September 30, 2008.

(d)

Issuer has filed for bankruptcy.

(e)

Illiquid security. At September 30, 2008, the value of these securities amounted to $6,105,179 or 2.2% of net assets.

(f)

Non-income producing security.

(g)

Bankrupt issuer. Security remains in the Portfolio of Investments pending final resolution of bankruptcy proceedings.

(h)

Represents investment of securities lending collateral.

(i)

Future dividend payments have been eliminated as the issuer has been placed in conservatorship.

144A

EMTN

Euro Medium Term Note

GMTN

Global Medium Term Note

MTN

Medium Term Note

REITs

Real Estate Investments Trusts

Key to Abbreviations: AUD: Australian Dollar; BRL: Brazilian Real; CAD: Canadian Dollar; EUR: Euro; IDR: Indonesian Rupiah; ISK: Icelandic Krona; KRW: South Korean Won; MXN: Mexican Peso; NZD: New Zealand Dollar; THB: Thai Baht

111

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Sovereigns	12.1	%
Mortgage Related	6.8
Banking	6.3
Electric	5.1
Wirelines	4.7
Technology	4.6
Supranational	4.1
Brokerage	3.9
Non-Captive Diversified	3.1
Pipelines	2.9
Media Cable	2.8
Independent Energy	2.8
Home Construction	2.7
Local Authorities	2.7
Other Investments, less than 2% each	27.9
Short-Term Investments	10.0

Total Investments	102.5
Other assets less liabilities	(2.5	)

Net Assets	100.0	%

CURRENCY EXPOSURE AT SEPTEMBER 30, 2008 AS A PERCENTAGE OF NET ASSETS (Unaudited)


United States Dollar	76.0	%
Canadian Dollar	10.7
New Zealand Dollar	4.0
Brazilian Real	3.5
Mexican Peso	2.0
Other, less than 2% each	6.3

Total Investments	102.5
Other assets less liabilities	(2.5	)

Net Assets	100.0	%

See accompanying notes to financial statements.

112

STATEMENTS OF ASSETS AND LIABILITIES

September 30, 2008


	Bond Fund			Fixed Income Fund

Assets
Investments at cost	$	17,505,264,400		$	633,199,725
Repurchase agreement(s) at cost		398,416,541			64,039,382
Net unrealized depreciation		(3,075,471,272	)		(80,712,870	)

Investments at value		14,828,209,669			616,526,237
Cash		3,141,193			62,493
Foreign currency at value (identified cost $8,922,297, $229,893, $57,421,660, $0, $72,474, $0 and $154,254)		8,651,271			228,679
Receivable for Fund shares sold		28,494,376			6,557,071
Receivable for securities sold		15,994,919			134,110
Unrealized appreciation on forward foreign currency contracts (Note 2)		—			—
Dividends and interest receivable		286,351,419			9,919,214
Tax reclaims receivable		—			8,345
Receivable from investment adviser (Note 4)		—			—
Securities lending income receivable		436,189			17,084
Receivable from broker - variation margin on open futures contracts		—			—

Total Assets		15,171,279,036			633,453,233


Liabilities
Collateral on securities loaned, at value (Note 2)		387,498,967			6,151,664
Due to custodian		—			—
Payable for securities purchased		2,430,619			1,045,134
Payable for Fund shares redeemed		80,797,255			1,331,001
Management fees payable (Note 4)		7,167,358			274,368
Administrative fees payable (Note 4)		631,377			25,764
Deferred Trustees’ fees (Note 4)		612,198			82,925
Service and distribution fees payable (Note 4)		51,494			—
Payable to broker - variation margin on open futures contracts		—			—
Unrealized depreciation on forward foreign currency contracts (Note 2)		—			—
Other accounts payable and accrued expenses		1,380,601			56,560

Total Liabilities		480,569,869			8,967,416

Net Assets	$	14,690,709,167		$	624,485,817

Net Assets consist of:
Paid-in capital	$	17,502,369,606		$	661,311,385
Accumulated net investment income		162,371,028			33,192,023
Accumulated net realized gain (loss) on investments, futures contracts and foreign currency transactions		110,827,421			10,892,549
Net unrealized depreciation on investments, futures contracts and foreign currency translations		(3,084,858,888	)		(80,910,140	)

Net Assets	$	14,690,709,167		$	624,485,817


Net Asset Value and Offering Price
Institutional Class
Net assets	$	7,616,621,451		$	624,485,817

Shares of beneficial interest		640,789,202			51,383,949

Net asset value, offering and redemption price per share	$	11.89		$	12.15

Retail Class
Net assets	$	6,863,593,992		$	—

Shares of beneficial interest		579,263,966			—

Net asset value, offering and redemption price per share	$	11.85		$	—

Admin Class
Net assets	$	210,493,724		$	—

Shares of beneficial interest		17,801,628			—

Net asset value, offering and redemption price per share	$	11.82		$	—

Value of securities on loan (Note 2)	$	369,800,620		$	5,787,463

See accompanying notes to financial statements.

113


Global Bond Fund			Inflation Protected Securities Fund			Institutional High Income Fund			Intermediate Duration Fixed Income Fund			Investment Grade Fixed Income Fund


$	2,381,006,335		$	18,300,722		$	224,195,716		$	38,282,810		$	297,950,451
	15,909,000			251,000			34,690,723			352,000			17,525,000
	(193,262,852	)		(1,122,838	)		(35,503,865	)		(1,884,204	)		(30,654,854	)
	2,203,652,483			17,428,884			223,382,574			36,750,606			284,820,597
	867			526			—			216			509

	55,711,422			—			71,649			—			152,170
	3,640,805			126,503			28,258			—			—
	5,398,499			—			5,435			1,799			—
	1,064,112			—			—			—			—
	36,479,772			134,773			3,904,456			328,395			4,080,429
	63,107			—			—			—			1,006
	—			7,458			—			5,728			—
	52,402			2,266			12,831			4,391			5,809
	2,125,000			—			—			—			—
	2,308,188,469			17,700,410			227,405,203			37,091,135			289,060,520


	62,965,841			1,411,666			12,836,133			4,238,526			10,190,325
	—			—			13,464			—			—
	3,138,001			—			61,478			—			799,259
	3,108,112			174,920			71,861			—			—
	1,286,643			3,495			111,879			6,899			96,744
	90,951			657			8,761			1,297			11,362
	148,965			37,499			49,329			40,447			56,444
	7,604			—			—			—			—
	—			—			—			17,578			—
	6,618,081			—			—			—			—
	183,467			39,067			51,347			38,544			43,568
	77,547,665			1,667,304			13,204,252			4,343,291			11,197,702
$	2,230,640,804		$	16,033,106		$	214,200,951		$	32,747,844		$	277,862,818

$	2,413,305,216		$	17,419,094		$	234,732,109		$	35,685,795		$	301,292,827
	43,914,862			29,211			11,730,719			6,401			4,075,614

	(24,566,327	)		(292,118	)		3,289,220			(1,051,400	)		3,277,958
	(202,012,947	)		(1,123,081	)		(35,551,097	)		(1,892,952	)		(30,783,581	)
$	2,230,640,804		$	16,033,106		$	214,200,951		$	32,747,844		$	277,862,818



$	1,157,175,061		$	16,033,106		$	214,200,951		$	32,747,844		$	277,862,818
	80,240,376			1,626,279			31,168,434			3,656,973			24,455,843
$	14.42		$	9.86		$	6.87		$	8.95		$	11.36

$	1,073,465,743		$	—		$	—		$	—		$	—
	75,038,963			—			—			—			—
$	14.31		$	—		$	—		$	—		$	—

$	—		$	—		$	—		$	—		$	—
	—			—			—			—			—
$	—		$	—		$	—		$	—		$	—
$	62,005,117		$	1,348,324		$	12,606,239		$	4,100,616		$	9,806,034

See accompanying notes to financial statements.

114

STATEMENTS OF OPERATIONS

For the Year Ended September 30, 2008


	Bond Fund			Fixed Income Fund

Investment Income
Dividends	$	39,649,353		$	1,085,683
Interest		1,192,161,628			43,611,273
Securities lending income (Note 2)		9,506,084			217,377
Less net foreign taxes withheld		(141,984	)		(3,524	)

		1,241,175,081			44,910,809


Expenses
Management fees (Note 4)		86,455,857			3,205,797
Distribution fees—Retail Class (Note 4)		19,616,387			—
Service and distribution fees—Admin Class (Note 4)		1,141,246			—
Trustees’ fees and expenses (Note 4)		235,110			17,219
Administrative fees (Note 4)		8,516,973			326,354
Custodian fees and expenses		824,993			55,541
Transfer agent fees and expenses—Institutional Class (Note 4)		3,959,763			1,409
Transfer agent fees and expenses—Retail Class (Note 4)		7,202,782			—
Transfer agent fees and expenses—Admin Class (Note 4)		326,862			—
Audit and tax services fees		44,988			44,752
Registration fees		786,947			32,822
Shareholder reporting expenses		1,625,860			2,752
Legal fees		448,044			16,349
Expense recapture—Retail Class (Note 4)		215,069			—
Miscellaneous expenses		478,435			25,674

Total expenses		131,879,316			3,728,669
Less fee reduction and/or expense reimbursement (Note 4)		(411,748	)		(12,467	)

Net expenses		131,467,568			3,716,202

Net investment income		1,109,707,513			41,194,607


Net Realized And Unrealized Gain (Loss) On Investments, Futures Contracts and Foreign Currency Transactions
Net Realized Gain (Loss) on:
Investments		297,027,441			15,026,908
Futures contracts		—			—
Foreign currency transactions		2,733,234			54,807

Net Change in Unrealized Appreciation (Depreciation) on:
Investments		(3,770,212,311	)		(122,868,672	)
Futures contracts		—			—
Foreign currency translations		(11,664,563	)		(252,927	)

Net realized and unrealized gain (loss) on investments, futures contracts and foreign currency transactions		(3,482,116,199	)		(108,039,884	)


Net Increase (Decrease) in Net Assets Resulting from Operations	$	(2,372,408,686	)	$	(66,845,277	)

See accompanying notes to financial statements.

115


Global Bond Fund			Inflation Protected Securities Fund			Institutional High Income Fund			Intermediate Duration Fixed Income Fund			Investment Grade Fixed Income Fund


$	2,670,207		$	7,230		$	791,752		$	—		$	167,634
	113,511,843			1,108,823			16,928,190			1,798,764			17,651,087
	1,272,026			22,610			218,407			48,994			114,588
	(113,226	)		—			(1,227	)		—			—
	117,340,850			1,138,663			17,937,122			1,847,758			17,933,309


	12,638,603			39,289			1,278,890			85,501			1,106,947
	2,780,722			—			—			—			—
	—			—			—			—			—
	39,661			9,720			12,191			9,861			12,983
	1,191,798			7,996			108,472			17,427			140,839
	229,209			16,265			31,977			20,122			34,430
	243,299			7,536			7,005			1,044			989
	1,176,640			—			—			—			—
	—			—			—			—			—
	46,938			41,074			43,212			37,793			39,091
	154,344			21,517			28,772			21,679			25,356
	187,023			1,183			8,601			1,757			1,689
	62,437			401			5,418			805			7,129
	240,828			—			—			—			—
	72,105			4,145			10,405			5,067			12,698
	19,063,607			149,126			1,534,943			201,056			1,382,151
	(45,880	)		(86,267	)		(4,126	)		(64,255	)		(5,357	)
	19,017,727			62,859			1,530,817			136,801			1,376,794
	98,323,123			1,075,804			16,406,305			1,710,957			16,556,515



	39,040,311			117,757			3,309,293			(299,671	)		8,203,200
	(1,375,468	)		—			—			90,945			—
	(532,270	)		381			(3,911	)		(1,055	)		12,532


	(245,009,680	)		(952,219	)		(48,353,364	)		(1,622,101	)		(43,260,764	)
	224,761			—			—			(8,735	)		—
	(10,573,520	)		(1,079	)		(57,192	)		(13	)		(160,758	)

	(218,225,866	)		(835,160	)		(45,105,174	)		(1,840,630	)		(35,205,790	)

$	(119,902,743	)	$	240,644		$	(28,698,869	)	$	(129,673	)	$	(18,649,275	)

See accompanying notes to financial statements.

116

STATEMENTS OF CHANGES IN NET ASSETS

Bond Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	1,109,707,513		$	602,981,854
Net realized gain on investments and foreign currency transactions		299,760,675			141,128,552
Net change in net unrealized appreciation (depreciation) on investments and foreign currency translations		(3,781,876,874	)		288,741,579

Increase (Decrease) in Net Assets From Operations		(2,372,408,686	)		1,032,851,985

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(618,954,427	)		(367,518,277	)
Retail Class		(540,831,022	)		(254,215,109	)
Admin Class		(15,164,699	)		(8,202,969	)
Capital Gains:
Institutional Class		—			—
Retail Class		—			—
Admin Class		—			—

Total distributions		(1,174,950,148	)		(629,936,355	)

Increase in Net Assets Derived from Capital Shares Transactions (Note 7)		3,895,007,552			6,856,379,181

Redemption Fees
Institutional Class		423,395			440,675
Retail Class		381,530			303,180
Admin Class		11,120			10,693

Total increase in net assets		348,464,763			7,260,049,359
Net Assets
Beginning of year		14,342,244,404			7,082,195,045

End of year	$	14,690,709,167		$	14,342,244,404

Accumulated Net Investment Income	$	162,371,028		$	57,172,960

Fixed Income Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	41,194,607		$	30,944,356
Net realized gain on investments and foreign currency transactions		15,081,715			18,051,055
Net change in net unrealized appreciation (depreciation) on investments and foreign currency translations		(123,121,599	)		6,460,609

Increase (Decrease) in Net Assets From Operations		(66,845,277	)		55,456,020

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(43,626,372	)		(30,011,559	)
Capital Gains:
Institutional Class		(643,688	)		—

Total distributions		(44,270,060	)		(30,011,559	)

Increase in Net Assets Derived from Capital Shares Transactions (Note 7)		130,500,717			123,644,710

Total increase in net assets		19,385,380			149,089,171
Net Assets
Beginning of year		605,100,437			456,011,266

End of year	$	624,485,817		$	605,100,437

Accumulated Net Investment Income	$	33,192,023		$	32,919,117

See accompanying notes to financial statements.

117

STATEMENTS OF CHANGES IN NET ASSETS

Global Bond Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	98,323,123		$	55,241,500
Net realized gain on investments, futures contracts and foreign currency transactions		37,132,573			14,783,271
Net change in net unrealized appreciation (depreciation) on investments, futures contracts and foreign currency translations		(255,358,439	)		56,531,746

Increase (Decrease) in Net Assets From Operations		(119,902,743	)		126,556,517

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(61,946,579	)		(46,911,889	)
Retail Class		(52,697,573	)		(37,021,466	)
Capital Gains:
Institutional Class		—			—
Retail Class		—			—

Total distributions		(114,644,152	)		(83,933,355	)

Increase in Net Assets Derived from Capital Shares Transactions (Note 7)		594,419,506			643,198,818

Redemption Fees
Institutional Class		77,878			59,521
Retail Class		69,167			51,588

Total increase in net assets		360,019,656			685,933,089
Net Assets
Beginning of year		1,870,621,148			1,184,688,059

End of year	$	2,230,640,804		$	1,870,621,148

Accumulated Net Investment Income	$	43,914,862		$	12,750,956

Inflation Protected Securities Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	1,075,804		$	535,955
Net realized gain (loss) on investments and foreign currency transactions		118,138			(18,387	)
Net change in net unrealized appreciation (depreciation) on investments and foreign currency translations		(953,298	)		114,691

Increase in net assets resulting from operations		240,644			632,259

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(1,129,818	)		(595,612	)
Capital Gains:
Institutional Class		—			—

Total distributions		(1,129,818	)		(595,612	)

Increase in Net Assets Derived from Capital Shares Transactions (Note 7)		3,454,672			4,378,400

Total increase in net assets		2,565,498			4,415,047
Net Assets
Beginning of year		13,467,608			9,052,561

End of year	$	16,033,106		$	13,467,608

Accumulated Net Investment Income	$	29,211		$	1,726

See accompanying notes to financial statements.

118

STATEMENTS OF CHANGES IN NET ASSETS – continued

Institutional High Income Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	16,406,305		$	10,809,328
Net realized gain on investments and foreign currency transactions		3,305,382			8,148,235
Net change in net unrealized appreciation (depreciation) on investments and foreign currency translations		(48,410,556	)		(3,394,602	)

Increase (Decrease) in Net Assets From Operations		(28,698,869	)		15,562,961

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(12,543,920	)		(9,165,373	)
Capital Gains:
Institutional Class		(3,556,542	)		—

Total distributions		(16,100,462	)		(9,165,373	)

Increase in Net Assets Derived from Capital Shares Transactions (Note 7)		71,431,847			39,853,081

Total increase in net assets		26,632,516			46,250,669
Net Assets
Beginning of year		187,568,435			141,317,766

End of year	$	214,200,951		$	187,568,435

Accumulated Net Investment Income	$	11,730,719		$	8,165,766

Intermediate Duration Fixed Income Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	1,710,957		$	1,737,447
Net realized loss on investments, futures contracts and foreign currency transactions		(209,781	)		(82,683	)
Net change in net unrealized appreciation (depreciation) on investments, futures contracts and foreign currency translations		(1,630,849	)		42,252

Increase (Decrease) in Net Assets From Operations		(129,673	)		1,697,016

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(1,768,089	)		(1,835,942	)
Capital Gains:
Institutional Class		—			—

Total distributions		(1,768,089	)		(1,835,942	)

Increase (Decrease) in Net Assets Derived from Capital Shares Transactions (Note 7)		3,200,454			(10,267,100	)

Total increase (decrease) in net assets		1,302,692			(10,406,026	)
Net Assets
Beginning of year		31,445,152			41,851,178

End of year	$	32,747,844		$	31,445,152

Accumulated Net Investment Income	$	6,401		$	4,913

See accompanying notes to financial statements.

119

STATEMENTS OF CHANGES IN NET ASSETS

Investment Grade Fixed Income Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	16,556,515		$	11,275,232
Net realized gain on investments and foreign currency transactions		8,215,732			3,867,775
Net change in net unrealized appreciation (depreciation) on investments and foreign currency translations		(43,421,522	)		5,644,073

Increase (Decrease) in Net Assets From Operations		(18,649,275	)		20,787,080

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(19,088,772	)		(14,190,258	)
Capital Gains:
Institutional Class		—			—

Total distributions		(19,088,772	)		(14,190,258	)

Increase in Net Assets Derived from Capital Shares Transactions (Note 7)		53,860,153			81,594,581

Total increase in net assets		16,122,106			88,191,403
Net Assets
Beginning of year		261,740,712			173,549,309

End of year	$	277,862,818		$	261,740,712

Accumulated Net Investment Income	$	4,075,614		$	2,416,446

See accompanying notes to financial statements.

120

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period.


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

Institutional Class
9/30/2008	$	14.71	$	0.96	$	(2.77	)	$	(1.81	)	$	(1.01	)	$	—	$	(1.01	)
9/30/2007		14.13		0.83		0.58			1.41			(0.83	)		—		(0.83	)
9/30/2006		13.81		0.72		0.47			1.19			(0.87	)		—		(0.87	)
9/30/2005		13.46		0.67		0.57			1.24			(0.89	)		—		(0.89	)
9/30/2004		12.66		0.72		0.82			1.54			(0.74	)		—		(0.74	)

Retail Class
9/30/2008	$	14.67	$	0.92	$	(2.77	)	$	(1.85	)	$	(0.97	)	$	—	$	(0.97	)
9/30/2007		14.10		0.79		0.57			1.36			(0.79	)		—		(0.79	)
9/30/2006		13.78		0.69		0.47			1.16			(0.84	)		—		(0.84	)
9/30/2005		13.44		0.64		0.57			1.21			(0.87	)		—		(0.87	)
9/30/2004		12.65		0.69		0.82			1.51			(0.72	)		—		(0.72	)

Admin Class
9/30/2008	$	14.64	$	0.88	$	(2.76	)	$	(1.88	)	$	(0.94	)	$	—	$	(0.94	)
9/30/2007		14.07		0.75		0.58			1.33			(0.76	)		—		(0.76	)
9/30/2006		13.75		0.65		0.48			1.13			(0.81	)		—		(0.81	)
9/30/2005		13.42		0.60		0.56			1.16			(0.83	)		—		(0.83	)
9/30/2004		12.64		0.65		0.82			1.47			(0.69	)		—		(0.69	)

(a) Had certain expenses not been reduced during the period, if applicable, total returns would have been lower. Periods less than one year, if applicable, are not annualized.

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

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

(e) Includes expense recapture of 0.02%.

(f) Effective July 1, 2007, the Fund decreased its net expense limitations to 0.70%, 0.95% and 1.20% from 0.75%, 1.00% and 1.25% for the Institutional Class, Retail Class and Admin Class, respectively.

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

(h) Includes expense recapture of less than 0.01%.

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

See accompanying notes to financial statements.

121


								Ratios to Average Net Assets:
Redemption fees^(d)(i)		Net asset value, end of the period		Total return (%)^(a)		Net assets, end of the period (000’s)		Net expenses (%)^(b)(g)		Gross expenses (%)^(g)		Net investment income (loss) (%)^(g)	Portfolio turnover rate (%)



$	0.00	$	11.89	(13.1	)	$	7,616,621	0.64		0.64		6.78	26
	0.00		14.71	10.3			7,716,061	0.67	^(f)	0.67		5.75	20
	0.00		14.13	9.0			4,742,622	0.75	^(e)	0.75	^(e)	5.20	26
	0.00		13.81	9.5			3,303,997	0.75		0.79		4.91	22
	—		13.46	12.5			2,365,199	0.75		0.79		5.48	42


$	0.00	$	11.85	(13.4	)	$	6,863,594	0.94	^(h)	0.94	^(h)	6.49	26
	0.00		14.67	9.9			6,432,333	0.97	^(f)	0.97		5.49	20
	0.00		14.10	8.8			2,232,632	1.00		1.01		4.99	26
	0.00		13.78	9.2			707,394	1.00		1.05		4.64	22
	—		13.44	12.2			275,349	1.00		1.04		5.24	42


$	0.00	$	11.82	(13.7	)	$	210,494	1.20		1.24		6.23	26
	0.00		14.64	9.7			193,850	1.23	^(f)(h)	1.23	^(h)	5.20	20
	0.00		14.07	8.5			106,941	1.25		1.29		4.71	26
	0.00		13.75	8.9			64,263	1.25		1.31		4.39	22
	—		13.42	11.9			27,299	1.25		1.29		4.99	42

See accompanying notes to financial statements.

122

FINANCIAL HIGHLIGHTS – continued

For a share outstanding throughout each period.


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

Institutional Class
9/30/2008	$	14.49	$	0.88	$	(2.14	)	$	(1.26	)	$	(1.06	)	$	(0.02	)	$	(1.08	)
9/30/2007		13.89		0.83		0.67			1.50			(0.90	)		—			(0.90	)
9/30/2006		13.88		0.74		0.30			1.04			(1.03	)		—			(1.03	)
9/30/2005		13.93		0.75		0.58			1.33			(1.38	)		—			(1.38	)
9/30/2004		13.24		0.82		0.79			1.61			(0.92	)		—			(0.92	)

Global Bond Fund

Institutional Class
9/30/2008	$	15.83	$	0.70	$	(1.30	)	$	(0.60	)	$	(0.81	)	$	—		$	(0.81	)
9/30/2007		15.43		0.60		0.70			1.30			(0.90	)		—			(0.90	)
9/30/2006		15.57		0.48		0.16			0.64			(0.70	)		(0.08	)		(0.78	)
9/30/2005		15.59		0.44		0.05			0.49			(0.46	)		(0.05	)		(0.51	)
9/30/2004		14.93		0.48		0.78			1.26			(0.60	)		—			(0.60	)

Retail Class
9/30/2008	$	15.71	$	0.64	$	(1.29	)	$	(0.65	)	$	(0.75	)	$	—		$	(0.75	)
9/30/2007		15.29		0.54		0.70			1.24			(0.82	)		—			(0.82	)
9/30/2006		15.43		0.44		0.15			0.59			(0.65	)		(0.08	)		(0.73	)
9/30/2005		15.46		0.40		0.05			0.45			(0.43	)		(0.05	)		(0.48	)
9/30/2004		14.83		0.43		0.79			1.22			(0.59	)		—			(0.59	)

(a) Had certain expenses not been reduced during the period, if applicable, total returns would have been lower. Periods less than one year, if applicable, are not annualized.

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

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

(e) Includes expense recapture of less than 0.01% and 0.03% for Fixed Income Fund and Global Bond Fund, respectively.

(f) Includes expense recapture of 0.02%.

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

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

See accompanying notes to financial statements.

123


									Ratios to Average Net Assets:
Redemption fees^(d)			Net asset value, end of the period		Total return (%)^(a)		Net assets, end of the period (000’s)		Net expenses (%)^(b)(g)		Gross expenses (%)^(g)		Net investment income (loss) (%)^(g)	Portfolio turnover rate (%)



$	—		$	12.15	(9.4	)	$	624,486	0.58		0.58		6.43	30
	—			14.49	11.3			605,100	0.60		0.60		5.96	22
	—			13.89	8.1			456,011	0.60	^(e)	0.60	^(e)	5.48	40
	—			13.88	9.9			444,552	0.65		0.65		5.47	34
	—			13.93	12.6			358,652	0.65		0.66		6.17	35




$	0.00	^(h)	$	14.42	(4.1	)	$	1,157,175	0.64		0.64		4.36	60
	0.00			15.83	8.7			996,046	0.68		0.68		3.84	95
	0.00			15.43	4.3			643,991	0.74	^(e)	0.74	^(e)	3.21	77
	0.00			15.57	3.1			553,704	0.75		0.80		2.75	63
	0.00			15.59	8.6			287,830	0.80		0.85		3.15	61


$	0.00	^(h)	$	14.31	(4.5	)	$	1,073,466	1.00	^(f)	1.00	^(f)	4.02	60
	0.00			15.71	8.4			874,575	1.00		1.04		3.53	95
	0.00			15.29	4.0			540,697	1.00		1.09		2.93	77
	0.00			15.43	2.8			699,498	1.00		1.09		2.57	63
	0.00			15.46	8.4			413,652	1.04		1.10		2.88	61

See accompanying notes to financial statements.

124

FINANCIAL HIGHLIGHTS – continued

For a share outstanding throughout each period.


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

Institutional Class
9/30/2008	$	10.31	$	0.73	$	(0.43	)	$	0.30		$	(0.75	)	$	—		$	(0.75	)
9/30/2007		10.30		0.47		0.03			0.50			(0.49	)		—			(0.49	)
9/30/2006		10.84		0.52		(0.38	)		0.14			(0.63	)		(0.05	)		(0.68	)
9/30/2005		11.02		0.42		(0.08	)		0.34			(0.52	)		—			(0.52	)
9/30/2004		11.60		0.37		(0.12	)		0.25			(0.54	)		(0.29	)		(0.83	)

Institutional High Income Fund

Institutional Class
9/30/2008	$	8.45	$	0.60	$	(1.52	)	$	(0.92	)	$	(0.51	)	$	(0.15	)	$	(0.66	)
9/30/2007		8.11		0.55		0.30			0.85			(0.51	)		—			(0.51	)
9/30/2006		7.80		0.50		0.34			0.84			(0.53	)		—			(0.53	)
9/30/2005		7.50		0.55		0.39			0.94			(0.64	)		—			(0.64	)
9/30/2004		6.91		0.55		0.66			1.21			(0.62	)		—			(0.62	)

Intermediate Duration Fixed Income Fund

Institutional Class
9/30/2008	$	9.47	$	0.47	$	(0.50	)	$	(0.03	)	$	(0.49	)	$	—		$	(0.49	)
9/30/2007		9.50		0.45		(0.01	)		0.44			(0.47	)		—			(0.47	)
9/30/2006		9.60		0.42		(0.07	)		0.35			(0.45	)		—			(0.45	)
9/30/2005		9.92		0.40		(0.25	)		0.15			(0.45	)		(0.02	)		(0.47	)
9/30/2004		10.10		0.45		(0.10	)		0.35			(0.53	)		—			(0.53	)

Investment Grade Fixed Income Fund

Institutional Class
9/30/2008	$	12.96	$	0.76	$	(1.47	)	$	(0.71	)	$	(0.89	)	$	—		$	(0.89	)
9/30/2007		12.63		0.70		0.53			1.23			(0.90	)		—			(0.90	)
9/30/2006		13.28		0.60		0.22			0.82			(0.92	)		(0.55	)		(1.47	)
9/30/2005		13.54		0.57		0.27			0.84			(0.83	)		(0.27	)		(1.10	)
9/30/2004		13.38		0.67		0.75			1.42			(0.88	)		(0.38	)		(1.26	)

(a) Had certain expenses not been reduced during the period, if applicable, total returns would have been lower. Periods less than one year, if applicable, are not annualized.

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

(d) Includes expense recapture of less than 0.01%.

(e) Includes expense recapture of 0.01%.

(f) Effective July 1, 2005, the Intermediate Duration Fixed Income Fund and the Inflation Protected Securities Fund decreased their net expense limitations to 0.40% and 0.45%, respectively, from 0.45% and 0.50%, respectively.

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

See accompanying notes to financial statements.

125


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



$	9.86	2.6		$	16,033	0.40		0.95		6.85	22
	10.31	5.1			13,468	0.40		1.28		4.60	26
	10.30	1.5			9,053	0.40		1.69		4.96	41
	10.84	3.1			9,298	0.49	^(f)	1.54		3.81	141
	11.02	2.3			7,390	0.50		1.73		3.33	99




$	6.87	(11.7	)	$	214,201	0.72		0.72		7.70	35
	8.45	10.8			187,568	0.75	^(e)	0.75	^(e)	6.60	31
	8.11	11.6			141,318	0.75		0.79		6.40	23
	7.80	13.0			110,533	0.75		0.82		7.24	22
	7.50	18.1			97,109	0.75		0.88		7.66	59




$	8.95	(0.5	)	$	32,748	0.40		0.59		5.00	65
	9.47	4.8			31,445	0.40		0.61		4.71	87
	9.50	3.8			41,851	0.40		0.62		4.48	62
	9.60	1.5			40,628	0.44	^(f)	0.68		4.10	50
	9.92	3.6			31,051	0.45		0.76		4.48	48




$	11.36	(6.0	)	$	277,863	0.50		0.50		5.98	32
	12.96	10.2			261,741	0.53		0.53		5.52	23
	12.63	6.8			173,549	0.55	^(d)	0.55	^(d)	4.79	50
	13.28	6.4			186,749	0.55		0.58		4.28	42
	13.54	11.1			177,094	0.55		0.60		5.03	34

See accompanying notes to financial statements.

126

NOTES TO FINANCIAL STATEMENTS

September 30, 2008

1. Organization. Loomis Sayles Funds I (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. Shares of certain funds in the Trust were first registered under the Securities Act of 1933 (the “1933 Act”) effective March 7, 1997 (subsequent to their commencement of investment operations). Information presented in these financial statements pertains to the fixed income funds of the Trust; the financial statements for the equity funds of the Trust are presented in a separate report. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:

Loomis Sayles Bond Fund (the “Bond Fund”)

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

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

Loomis Sayles Inflation Protected Securities Fund (the “Inflation Protected Securities Fund”)

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

Loomis Sayles Intermediate Duration Fixed Income Fund (the “Intermediate Duration Fixed Income Fund”)

Loomis Sayles Investment Grade Fixed Income Fund (the “Investment Grade Fixed Income Fund”)

Each Fund offers Institutional Class Shares. Bond Fund and Global Bond Fund also offer Retail Class Shares. In addition, Bond Fund offers Admin Class Shares.

Most expenses of the Trust can be directly attributed to a fund. Expenses which cannot be directly attributed to a fund are generally apportioned based on the relative net assets of each of the funds in the Trust. Expenses of a fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (including the Rule 12b-1 service and distribution fees and transfer agent fees applicable to such class). 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 dividends from net investment income on each class of shares.

2. Significant Accounting Policies. The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

a. Security Valuation. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional size-trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Equity securities, including closed-end investment companies and exchange traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and approved by the Board of Trustees. Such pricing services generally use the security’s last sale price on the exchange or market where the security is primarily traded or, if there is no reported sale during the day, the closing bid price. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking a NOCP, at the most recent bid quotation on the applicable NASDAQ Market. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Futures contracts are priced at their most recent settlement price. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser using consistently applied procedures under the general supervision of the Board of Trustees. Investments in other open-end investment companies are valued at their net asset value each day.

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b. Security Transactions and Related Investment Income. Security transactions are accounted for on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as the Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. Periodic principal adjustments for inflation-protected securities are recorded to interest income. Distributions received from investments in securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds’ investments in real estate investment trusts (“REITs”) are reported to the Funds after the end of the fiscal year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the fiscal year. Estimates are based on the most recent REIT distribution information available. Investment income is recorded net of foreign taxes withheld when applicable. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

Certain 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.

Each Fund may purchase investments of foreign issuers. Investing in securities of foreign issuers involves special risks and considerations not typically associated with investing in U.S. companies and securities of the U.S. government. These risks include revaluation of currencies and the risk of appropriation. Moreover, the markets for securities of many foreign issuers may be less liquid and the prices of such securities may be more volatile than those of comparable U.S. companies and the U.S. government.

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

All contracts are “marked-to-market” daily using interpolated prices determined by an independent pricing service and any gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. At September 30, 2008, there were no open forward currency contracts.

e. Futures Contracts. The Funds may enter into futures contracts. A futures contract is an agreement between two parties to buy and sell a particular commodity, instrument or index (e.g., an interest-bearing security) for a specified price on a specified future date.

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NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

or loss on a futures position is equal to the net variation margin received or paid over the time the position is held, plus or minus the amount received or paid when the position is 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 the Fund’s ability to close out a futures contract prior to settlement date, and unanticipated movements in the value of securities or interest rates.

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 applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of the Funds’ tax positions taken on federal and state tax returns that remain subject to examinations (tax years ended September 30, 2005-2008) and has concluded that no provisions for income tax are required. Fund 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.

g. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes for items such as foreign currency transactions, defaulted bond adjustments, discount adjustments on inflation-protected securities, paydown gains and losses and premium amortization accruals. 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 accruals, securities lending collateral gain/loss adjustments, forward contracts mark to market, futures contracts mark to market, and defaulted bond interest. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2008 and 2007 was as follows:


	2008 Distributions Paid From:						2007 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains	Total
Bond Fund	$	1,174,950,148	$	—	$	1,174,950,148	$	629,936,355	$ —	$	629,936,355
Fixed Income Fund		43,626,372		643,688		44,270,060		30,011,559	—		30,011,559
Global Bond Fund		114,644,152		—		114,644,152		83,933,355	—		83,933,355
Inflation Protected Securities Fund		1,129,818		—		1,129,818		595,612	—		595,612
Institutional High Income Fund		12,782,158		3,318,304		16,100,462		9,165,373	—		9,165,373
Intermediate Duration Fixed Income Fund		1,768,089		—		1,768,089		1,835,942	—		1,835,942
Investment Grade Fixed Income Fund		19,088,772		—		19,088,772		14,190,258	—		14,190,258

Differences between these amounts and those reported in the Statements of Changes in Net Assets are primarily attributable to different book and tax treatment for short-term capital gains.

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As of September 30, 2008, the components of distributable earnings on a tax basis were as follows:


	Bond Fund			Fixed Income Fund			Global Bond Fund			Inflation Protected Securities Fund			Institutional High Income Fund			Intermediate Duration Fixed Income Fund			Investment Grade Fixed Income Fund
Undistributed ordinary income	$	184,626,437		$	37,879,219		$	44,111,703		$	66,711		$	14,533,583		$	46,847		$	5,511,330
Undistributed long-term capital gains		117,096,804			8,757,966			—			—			1,232,217			—			2,544,086

Total undistributed earnings	$	301,723,241		$	46,637,185		$	44,111,703		$	66,711		$	15,765,800		$	46,847		$	8,055,416
Capital loss carryforward:
Expires September 30, 2013		—			—			—			—			—			(3,797	)		—
Expires September 30, 2014		—			—			(1,046,616	)		(19,853	)		—			(186,919	)
Expires September 30, 2015		—			—			(5,497,643	)		(155,005	)		—			(326,220	)
Expires September 30, 2016		—			—			(3,309,847	)		—			—			(222,423	)

Total capital loss carryforward		—			—			(9,854,106	)		(174,858	)		—			(739,359	)		—
Deferred net capital losses (post-October 2007)		—			—			(9,216,441	)		—			—			(257,177	)		—
Unrealized appreciation (depreciation)		(3,094,888,440	)		(82,714,245	)		(207,323,735	)		(1,240,343	)		(35,597,273	)		(1,947,815	)		(30,962,453	)

Total accumulated earnings (losses)	$	(2,793,165,199	)	$	(36,077,060	)	$	(182,282,579	)	$	(1,348,490	)	$	(19,831,473	)	$	(2,897,504	)	$	(22,907,037	)

Capital loss carryforward utilized in the current year	$	4,753,778		$	—		$	—		$	2,320		$	—		$	—		$	332,729

h. Repurchase Agreements. Each Fund, through its custodian, receives delivery of the underlying securities collateralizing repurchase agreements. It is each Fund’s policy that the market value of the collateral be at least equal to 100% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held at the custodian bank in a segregated account for the benefit of the Fund and on behalf of the counterparty. It is each Fund’s policy, regarding tri-party arrangements, that the market value of the collateral be at least equal to 102% of the repurchase price, including interest. 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.

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NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

i. Delayed Delivery Commitments. Each Fund may purchase or sell securities on a when issued or forward commitment basis. Payment and delivery may take place a month or more after the date of the transaction. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract. Collateral consisting of liquid securities or cash and cash equivalents is maintained in an amount at least equal to these commitments with the custodian. At September 30, 2008, there were no delayed delivery commitments.

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 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 of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value of loaned securities for non-U.S. equities; and at least 100% of the market value 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. The value of securities on loan to borrowers and the value of collateral held by the Funds with respect to such loans at September 30, 2008 were as follows:


	Value of Securities on Loan		Value of Collateral
Bond Fund	$	369,800,620	$	387,498,967
Fixed Income Fund		5,787,463		6,151,664
Global Bond Fund		62,005,117		62,965,841
Inflation Protected Securities Fund		1,348,324		1,411,666
Institutional High Income Fund		12,606,239		12,836,133
Intermediate Duration Fixed Income Fund		4,100,616		4,238,526
Investment Grade Fixed Income Fund		9,806,034		10,190,325

Subsequent to September 30, 2008, all securities on loan were called back.

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.

l. New Accounting Pronouncements. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management has evaluated the impact the adoption of FAS 157 will have on the Funds’ financial statements and believes that such impact will be limited to expanded disclosure in the Funds’ financial statements regarding inputs used in determining the value of the Funds’ investments.

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3. Purchases and Sales of Securities. For the year ended September 30, 2008, 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
Bond Fund	$	238,449,095	$	1,771,881,510	$	7,441,017,238	$	2,259,013,261
Fixed Income Fund		29,973,580		68,040,184		208,432,300		111,689,835
Global Bond Fund		217,945,864		383,465,167		1,668,494,479		941,818,955
Inflation Protected Securities Fund		5,644,680		2,814,430		584,270		568,926
Institutional High Income Fund		14,986,790		53,204,242		89,111,647		15,318,286
Intermediate Duration Fixed Income Fund		13,619,267		13,180,461		9,409,537		8,083,295
Investment Grade Fixed Income Fund		1,064,092		32,424,656		113,593,854		48,060,864

4. 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, 2008, 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 $1 billion	Next $1 billion	Next $1 billion	Next $12 billion	Over $15 billion
Bond Fund	0.60%	0.60%	0.60%	0.50%	0.49%
Fixed Income Fund	0.50%	0.50%	0.50%	0.50%	0.50%
Global Bond Fund	0.60%	0.50%	0.48%	0.48%	0.48%
Inflation Protected Securities Fund	0.25%	0.25%	0.25%	0.25%	0.25%
Institutional High Income Fund	0.60%	0.60%	0.60%	0.60%	0.60%
Intermediate Duration Fixed Income Fund	0.25%	0.25%	0.25%	0.25%	0.25%
Investment Grade Fixed Income Fund	0.40%	0.40%	0.40%	0.40%	0.40%

Prior to December 1, 2007, the management fees for the Bond Fund were 0.60% for the first $3 billion of average daily net assets of the Fund and 0.50% of such assets thereafter.


	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Institutional Class	Retail Class	Admin Class
Bond Fund	0.70%	0.95%	1.20%
Fixed Income Fund	0.65%	—	—
Global Bond Fund	0.75%	1.00%	—
Inflation Protected Securities Fund	0.40%	—	—
Institutional High Income Fund	0.75%	—	—
Intermediate Duration Fixed Income Fund	0.40%	—	—
Investment Grade Fixed Income Fund	0.55%	—	—

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NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

For the year ended September 30, 2008, the management fees for each Fund were as follows:


Fund	Management Fee		Percentage of Average Daily Net Assets
Bond Fund	$	86,455,857	0.52%
Fixed Income Fund		3,205,797	0.50%
Global Bond Fund		12,638,603	0.54%
Inflation Protected Securities Fund		39,289	0.25%
Institutional High Income Fund		1,278,890	0.60%
Intermediate Duration Fixed Income Fund		85,501	0.25%
Investment Grade Fixed Income Fund		1,106,947	0.40%

For the year ended September 30, 2008, class specific expenses have been reimbursed as follows:


Fund	Reimbursement
Bond Fund	$	81,414
Fixed Income Fund		—
Global Bond Fund		—
Inflation Protected Securities Fund		85,963
Institutional High Income Fund		—
Intermediate Duration Fixed Income Fund		63,574
Investment Grade Fixed Income Fund		—


	Expenses Subject to Possible Reimbursement Until September 30, 2009
Fund	Institutional Class		Retail Class		Admin Class		Total
Bond Fund	$	—	$	—	$	81,414	$	81,414
Fixed Income Fund		—		—		—		—
Global Bond Fund		—		—		—		—
Inflation Protected Securities Fund		85,963		—		—		85,963
Institutional High Income Fund		—		—		—		—
Intermediate Duration Fixed Income Fund		63,574		—		—		63,574
Investment Grade Fixed Income Fund		—		—		—		—

b. Administrative Fees. Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Fund and subcontracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0500% of the next $15 billion, 0.0425% of the next $30 billion and 0.0375% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to an annual fee of $75,000 plus $12,500 per class and an additional $75,000 if managed by multiple subadvisors in their first calendar year of operations.

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Prior to July 1, 2008, each Fund paid Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0675% of the first $5 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, 0.0625% of the next $5 billion, 0.0500% of the next $20 billion and 0.045% of such assets in excess of $30 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series of $5 million, which was reevaluated on an annual basis. New funds were subject to an annual fee of $50,000 plus $12,500 per class and an additional $50,000 if managed by multiple subadvisors in their first calendar year of operations.

For the year ended September 30, 2008, each Fund paid the following for administrative fees to Natixis Advisors:


Fund	Gross Administrative Fees		Waiver of Administrative Fees		Net Administrative Fees
Bond Fund	$	8,516,973	$	330,334	$	8,186,639
Fixed Income Fund		326,354		12,467		313,887
Global Bond Fund		1,191,798		45,880		1,145,918
Inflation Protected Securities Fund		7,996		304		7,692
Institutional High Income Fund		108,472		4,126		104,346
Intermediate Duration Fixed Income Fund		17,427		681		16,746
Investment Grade Fixed Income Fund		140,839		5,357		135,482

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

Under the respective Retail Class and Admin Class Plans, each Fund pays Natixis Distributors a monthly distribution fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Fund’s Retail Class and Admin Class Shares, as reimbursement for expenses incurred by Natixis Distributors in providing personal services to investors in Retail Class and Admin Class Shares and/or maintenance of shareholder accounts. In addition, the Admin Class shares of the Bond Fund may pay an administrative service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to Admin Class shares to securities dealers or financial intermediaries for providing personal service and account maintenance for their customers who hold such shares.

For the year ended September 30, 2008, the Funds paid the following service and distribution fees:


	Service Fees				Distribution Fees
Fund	Admin Class		Retail Class		Admin Class		Retail Class
Bond Fund	$	570,623	$	—	$	570,623	$	19,616,387
Fixed Income Fund		—		—		—		—
Global Bond Fund		—		—		—		2,780,722
Inflation Protected Securities Fund		—		—		—		—
Institutional High Income Fund		—		—		—		—
Intermediate Duration Fixed Income Fund		—		—		—		—
Investment Grade Fixed Income Fund		—		—		—		—

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NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

customers were registered directly with the Funds’ transfer agent. Accordingly, the Funds agreed to pay a portion of the intermediary fees attributable to shares of the Fund held by the intermediary (which generally is a percentage of the value of shares held) not exceeding what the Funds would have paid its transfer agent had each customer’s shares been registered directly with the transfer agent instead of held through the intermediary. Natixis Distributors pays the remainder of the fees. Listed below are the fees incurred by the Funds which are included in the transfer agent fees and expenses in the Statements of Operations.


	Sub-Transfer Agent Fees
Fund	Institutional Class		Retail Class		Admin Class
Bond Fund	$	3,645,546	$	5,978,079	$	306,150
Fixed Income Fund		—		—		—
Global Bond Fund		241,448		1,056,665		—
Inflation Protected Securities Fund		6,113		—		—
Institutional High Income Fund		5,053		—		—
Intermediate Duration Fixed Income Fund		624		—		—
Investment Grade Fixed Income Fund		—		—		—

e. Trustees Fees and Expenses. The Funds do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distributors, Natixis US, or their affiliates. The Chairperson of the Board receives a retainer fee at the annual rate of $200,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $65,000. Each Independent Trustee also receives a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attends in person and $3,750 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chair receives an additional retainer fee at the annual rate of $10,000. Each Contract Review and Governance Committee member is compensated $5,000 for each Committee meeting that he or she attends in person and $2,500 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,250 for each Committee meeting that he or she attends in person and $3,125 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 the Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each Fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

f. Redemption Fees. Effective June 2, 2008, the redemption fee imposed on any class of shares of the Bond Fund and Global Bond Fund was eliminated. Prior to June 2, 2008, shareholders were charged a 2% redemption fee if they redeemed, including redeeming by exchange, such shares within 60 days of their acquisition (including acquisition by exchange). The redemption fee was deducted from the shareholder’s redemption or exchange proceeds and was paid to the Funds. The fees were accounted for as an addition to paid-in capital and are presented on the Statements of Changes in Net Assets.

5. Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund

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based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.09% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the year ended September 30, 2008, the Funds had no borrowings under these agreements.

6. Shareholders. At September 30, 2008, Loomis Sayles Distributors, L.P. and Loomis Sayles Trust Co. LLC owned 247,011 shares, equal to 15.2% of Inflation Protected Securities Fund’s shares outstanding. At September 30, 2008, the Loomis Sayles Funded Pension Plan and Trust (“Pension Plan”) and the Loomis Sayles Employees’ Profit Sharing Retirement Plan held shares of beneficial interest in the Funds as follows:


Fund	Pension Plan	Profit Sharing Retirement Plan
Bond Fund	1,183,415	1,617,212
Fixed Income Fund	—	—
Global Bond Fund	622,782	421,420
Inflation Protected Securities Fund	186,042	171,162
Institutional High Income Fund	—	907,004
Intermediate Duration Fixed Income Fund	—	56,833
Investment Grade Fixed Income Fund	—	—

In addition, one shareholder affiliated with Institutional High Income Fund held approximately 5.6% of the Fund’s total outstanding shares.

At September 30, 2008, 4 shareholders individually owned more than 5% of the Fixed Income Fund’s total outstanding shares, representing, in aggregate, 23.3% of the Fund; 2 shareholders individually owned more than 5% of the Inflation Protected Securities Fund’s total outstanding shares, representing, in aggregate, 15.2% of the Fund; 3 shareholders individually owned more than 5% of the Institutional High Income Fund’s total outstanding shares, representing, in aggregate, 18.5% of the Fund; 3 shareholders individually owned more than 5% of the Intermediate Duration Fixed Income Fund’s total outstanding shares, representing, in aggregate, 83.4% of the Fund; and 4 shareholders individually owned more than 5% of the Investment Grade Fixed Income Fund’s total outstanding shares representing in aggregate, 40.7% of the Fund.

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


	Bond Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	251,570,447		$	3,582,639,853		225,302,977		$	3,259,332,205
Issued in connection with the reinvestment of distributions	38,067,200			533,833,567		21,376,443			307,439,341
Redeemed	(173,399,411	)		(2,388,845,785	)	(57,759,551	)		(835,264,911	)

Net change	116,238,236		$	1,727,627,635		188,919,869		$	2,731,506,635


Retail Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	289,365,734		$	4,136,823,680		316,905,718		$	4,574,277,582
Issued in connection with the reinvestment of distributions	36,275,158			506,995,862		16,459,304			236,127,467
Redeemed	(184,939,337	)		(2,542,156,728	)	(53,198,802	)		(766,662,779	)

Net change	140,701,555		$	2,101,662,814		280,166,220		$	4,043,742,270

136

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008


	Bond Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Admin Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	9,933,305		$	141,062,361		7,435,777		$	106,930,369
Issued in connection with the reinvestment of distributions	936,366			13,050,988		484,814			6,942,995
Redeemed	(6,310,368	)		(88,396,246	)	(2,279,523	)		(32,743,088	)

Net change	4,559,303		$	65,717,103		5,641,068		$	81,130,276

Increase (decrease) from capital share transactions	261,499,094		$	3,895,007,552		474,727,157		$	6,856,379,181


	Fixed Income Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	20,684,018		$	285,477,865		8,214,414		$	114,350,567
Issued in connection with the reinvestment of distributions	3,076,075			41,096,367		2,112,444			28,412,372
Issued from subscriptions-in-kind*	—			—		1,358,851			18,602,665
Redeemed	(14,148,613	)		(196,073,515	)	(2,736,152	)		(37,720,894	)

Increase (decrease) from capital share transactions	9,611,480		$	130,500,717		8,949,557		$	123,644,710

* Issued in exchange for portfolio securities contributed to the Fund in-kind by such shareholders on March, 1, 2007. Contributions included $18,407,166 of cash and securities and $195,499 in receivables. The securities contributed were part of a portfolio that was previously managed by Loomis Sayles.

	Global Bond Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	35,619,497		$	570,769,864		27,734,425		$	431,703,225
Issued in connection with the reinvestment of distributions	3,416,152			54,204,619		2,446,517			37,807,115
Redeemed	(21,704,761	)		(345,126,532	)	(9,017,324	)		(139,876,702	)

Net change	17,330,888		$	279,847,951		21,163,618		$	329,633,638


Retail Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	41,004,039		$	653,696,591		30,549,761		$	471,407,761
Issued in connection with the reinvestment of distributions	3,149,153			49,533,904		2,275,012			34,895,516
Redeemed	(24,777,028	)		(388,658,940	)	(12,534,751	)		(192,738,097	)

Net change	19,376,164		$	314,571,555		20,290,022		$	313,565,180

Increase (decrease) from capital share transactions	36,707,052		$	594,419,506		41,453,640		$	643,198,818

137


	Inflation Protected Securities Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	644,995		$	6,931,326		513,841		$	5,272,640
Issued in connection with the reinvestment of distributions	89,564			936,772		52,702			533,425
Redeemed	(414,633	)		(4,413,426	)	(139,248	)		(1,427,665	)

Increase (decrease) from capital share transactions	319,926		$	3,454,672		427,295		$	4,378,400


	Institutional High Income Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	13,115,043		$	104,688,742		5,899,925		$	49,270,705
Issued in connection with the reinvestment of distributions	1,889,032			14,526,657		912,481			7,327,229
Redeemed	(6,046,047	)		(47,783,552	)	(2,029,721	)		(16,744,853	)

Increase (decrease) from capital share transactions	8,958,028		$	71,431,847		4,782,685		$	39,853,081


	Intermediate Duration Fixed Income Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	464,596		$	4,429,364		288,140		$	2,734,830
Issued in connection with the reinvestment of distributions	128,620			1,209,983		132,904			1,257,767
Issued from subscriptions-in-kind*						112,853			1,070,978
Redeemed	(257,694	)		(2,438,893	)	(1,619,583	)		(15,330,675	)

Increase (decrease) from capital share transactions	335,522		$	3,200,454		(1,085,686	)	$	(10,267,100	)

* Issued in exchange for portfolio securities contributed to the Fund in-kind by such shareholders on October, 30, 2006. Contributions included $1,057,779 of securities and $13,199 in receivables. The securities contributed were part of a portfolio that was previously managed by Loomis Sayles.

	Investment Grade Fixed Income Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

Institutional Class	Shares		Amount			Shares		Amount
Issued from the sale of shares	7,579,953		$	95,580,515		3,430,409		$	43,194,911
Issued in connection with the reinvestment of distributions	1,021,690			12,868,000		902,151			11,398,175
Issued from subscriptions-in-kind*	—			—		3,389,172			43,211,946
Redeemed	(4,336,110	)		(54,588,362	)	(1,275,094	)		(16,210,451	)

Increase (decrease) from capital share transactions	4,265,533		$	53,860,153		6,446,638		$	81,594,581

* Issued in exchange for portfolio securities contributed to the Fund in-kind by such shareholders on July, 12, 2007. Contributions included $42,946,879 of cash and securities and $265,067 in receivables. The securities contributed were part of portfolios that were previously managed by Loomis Sayles.

138

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees of Loomis Sayles Funds I and Shareholders of Loomis Sayles Bond Fund, Loomis Sayles Fixed Income Fund, Loomis Sayles Global Bond Fund, Loomis Sayles Inflation Protected Securities Fund, Loomis Sayles Institutional High Income Fund, Loomis Sayles Intermediate Duration Fixed Income Fund and Loomis Sayles Investment Grade Fixed Income Fund:

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Bond Fund, Loomis Sayles Fixed Income Fund, Loomis Sayles Global Bond Fund, Loomis Sayles Inflation Protected Securities Fund, Loomis Sayles Institutional High Income Fund, Loomis Sayles Intermediate Duration Fixed Income Fund and Loomis Sayles Investment Grade Fixed Income Fund, each a series of Loomis Sayles Funds I (collectively, “the Funds”), at September 30, 2008, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2008

139

2008 U.S. TAX DISTRIBUTION INFORMATION TO SHAREHOLDERS (Unaudited)


Fund		Qualifying Percentage
Bond Fund		2.42%
Fixed Income Fund		1.59%
Global Bond Fund		1.63%
Inflation Protected Securities Fund		0.60%
Institutional High Income Fund		3.33%
Investment Grade Fixed Income Fund		0.66%


Fund		Amount
Fixed Income Fund		643,688
Institutional High Income Fund		3,318,304

Fund

Bond Fund

Fixed Income Fund

Global Bond Fund

Inflation Protected Securities Fund

Institutional High Income Fund

Investment Grade Fixed Income Fund

140

TRUSTEE AND OFFICER INFORMATION

The tables below provide certain information regarding the Trustees and officers of Loomis Sayles Funds I (the “Trust”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Trust’s Statements of Additional Information include additional information about the Trustees of the Trust and are available by calling Loomis Sayles at 800-343-2029.


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held

Independent Trustees
Graham T. Allison, Jr. (1940)	Trustee since 2003 Contract Review and Governance Committee Member	Douglas Dillon Professor and Director of the Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University	41 Director, Taubman Centers, Inc. (real estate investment trust)

Charles D. Baker (1956)	Trustee Since 2005 Contract Review and Governance Committee Member	President and Chief Executive Officer, Harvard Pilgrim Health Care (health plan)	41 None

Edward A. Benjamin (1938)	Trustee Since 2003 Chairman of the Contract Review and Governance Committee	Retired	41 None

Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Audit Committee	President and Chief Executive Officer, Cain Brothers & Company, Incorporated (investment banking)	41 Director, Sheridan Healthcare Inc. (physician practice management)

Kenneth A. Drucker (1945)	Trustee Since 2008 Contract Review and Governance Committee Member	Formerly, Treasurer, Sequa Corp. (manufacturing)	41 Director, M Fund, Inc. (registered investment company)

Jonathan P. Mason (1958)	Trustee Since 2007 Audit Committee Member	Chief Financial Officer, Cabot Corp. (specialty chemicals); formerly, Vice President and Treasurer, International Paper Company; formerly, Chief Financial Officer, Carter Holt Harvey (forest products)	41 None

Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee Since 2003 Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting); formerly, Senior Vice President and Director, The Boston Consulting Group, Inc. (management consulting)	41 Director, Verizon Communications; Director, Rohm and Haas Company (specialty chemicals); Director, AES Corporation (international power company)

141


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen*** and Other Directorships Held
Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School; and formerly, Dean for Finance & Chief Financial Officer, Harvard Medical School	41 None

Interested Trustees
Robert J. Blanding¹ (1947) 555 California Street San Francisco, CA 94104	Trustee Since 2002 President and Chief Executive Officer since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	41 None

John T. Hailer² (1960)	Trustee since 2003	President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.; formerly, President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P., Natixis Distributors, L.P. and Natixis Global Associates, Inc.	41 None

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

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

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

142


Name and Year of Birth	Position(s) Held with the Trusts	Term of Office* and Length of Time Served	Principal Occupation During Past 5 Years**

Officers of the Trust
Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk (formerly, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk), Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.

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

David Giunta (1965)	Executive Vice President	Since March 2008	President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; formerly, President, Fidelity Charitable Gift Fund; and formerly, Senior Vice President, Fidelity Brokerage Company

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

Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Director, PFPC Inc.

Robert Krantz (1964)	Executive Vice President	Since September 2007	Executive Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.

*	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.

143

LOGO

Loomis Sayles High Income Opportunities Fund

Loomis Sayles Securitized Asset Fund



TABLE OF CONTENTS

Fund and Manager Review		1

Portfolio of Investments		8

Statements of Assets and Liabilities		26

Statements of Operations		27

Statements of Changes in Net Assets		28

Financial Highlights		29

Notes to Financial Statements		31

ANNUAL REPORT

SEPTEMBER 30, 2008

FUND AND MANAGER REVIEW

Loomis Sayles High Income Opportunities Fund

LOGO

Matthew Eagan, CFA

Manager Since April 2004

LOGO

Kathleen Gaffney, CFA

Manager Since April 2004

LOGO

Dan Fuss, CFA, CIC

Manager Since April 2004

LOGO

Elaine Stokes

Manager Since April 2004

KEY FUND FACTS

Symbol | LSIOX

Objective | High current income. Capital appreciation is the Fund’s secondary objective.

Strategy | Invests substantially all of its assets, and may invest up to 100% of its assets, in high income securities. High income securities are fixed-income securities that Loomis Sayles believes have the potential to generate relatively high levels of current income.

Fund Inception Date | 4/12/04

Total Net Assets | $65.0 million

PORTFOLIO REVIEW

The Fund underperformed its Benchmark, the Lehman High Yield Index, for the fiscal year ended September 30, 2008, primarily due to the ongoing credit crisis and drama surrounding the banking sector, which pushed credit spreads to their widest levels of the year.

Our out-of-Benchmark exposure to investment grade financials was a principal contributor to the Fund’s negative total return, as the market lost confidence in the credit quality of many big-name banks and financial companies. The government’s seizure of Washington Mutual and the restructuring of the broker/dealer industry have fundamentally altered the landscape of investment and commercial banks.

Among below-investment grade industrials, lower-quality names resulting from leveraged buyouts in the days of easy credit were dragged down, as investors remained concerned about the financial implications of high debt loads and illiquid credit markets. The bankruptcy of Lehman Brothers and the conservatorship of Fannie Mae and Freddie Mac also had a negative impact on performance. We held preferred shares of Fannie and Freddie, and the suspension of dividends decreased the valuation of those holdings.

On a positive note, the Fund’s underweight in below-investment grade financials buoyed relative performance. The credit crisis made investors in the banking and finance sectors more anxious. Specifically, the ratings downgrade and subsequent downfall of Washington Mutual helped drag down performance for the sector. In addition, select investment grade industrial and convertible issues contributed positively, while an underweight allocation to the consumer cyclical sector also provided a modest boost. Our commitment to security selection lifted relative returns, as asset-backed and quality industrial names proved able to weather the credit market storm.

OUTLOOK

With tight credit and slowing economic growth, we are taking a hard look at opportunities. The team sees potential value in stable industrials, such as telecommunications and cable, but we are less enthusiastic about deep cyclicals, firms heavily dependent on the economy, and anything levered to the consumer.

Such generous income may help investors absorb default losses (up to a point) while waiting for prices to recover.

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008


1 Year		3 years		Since Inception^(a)

Loomis Sayles High Income Opportunities Fund
-13.24	%	-0.13	%	3.27	%

Lehman High Yield Index^(b)
-11.24		1.04		3.01

Lipper High Current Yield Funds Index^(b)
-11.45		0.61		2.67

Expense Ratio^{^(c)}
Institutional: 0.00%

CUMULATIVE PERFORMANCE

Inception to September 30, 2008

Data quoted reflects past performance and cannot guarantee future results. Total returns assume reinvestment of dividends and capital gains distributions. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than quoted.

Returns do not reflect the taxes that a shareholder would pay on fund distributions or the redemption of shares. Periods of less than one year are not annualized. Index performance data is not available coincident with the Fund’s inception date.

(a) Since Index performance data is not available coincident with the Fund’s inception date, the beginning value of the index is the value of the month-end closest to the Fund’s inception date. (b) See page 5 for a description of the Indices. (c) The amount shown under Expense Ratio is 0.00% to reflect the fact that the Fund does not pay any advisory, administration or distribution and service fees, and that Loomis Sayles has agreed to pay certain expenses of the Fund.

WHAT YOU SHOULD KNOW

High yield securities are subject to a high degree of market and credit risk. The secondary market for these securities may lack liquidity, which may adversely affect the value of the Fund. Securities issued by US government agencies are not insured by and may not be guaranteed by the US government.

FUND AND MANAGER REVIEW

Loomis Sayles Securitized Asset Fund

LOGO

Clifton Rowe, CFA

Manager since March 2006

LOGO

Fan Hu, CFA

Manager since April 2006

KEY FUND FACTS

Symbol | LSSAX

Objective | High current income consistent with capital preservation.

Strategy | Invest at least 80% of its net assets (plus any borrowings made for investment purposes) in a diversified portfolio of securitized assets, such as mortgage-backed and other asset-backed securities.

Fund Inception Date | 3/2/06

Total Net Assets | $382.1 million

PORTFOLIO REVIEW

The Fund lagged its Benchmark, the Lehman Securitized Index, for the fiscal year ended September 30, 2008, primarily due to its emphasis on mortgage-backed securities (MBS) and asset-backed securities (ABS) issued by entities other than government-sponsored entities (GSE). Relative to the Benchmark, the Fund was modestly overweight in ABS secured by consumer loans and mortgage loan receivables. The Fund also had an overweight position in commercial mortgage-backed securities (CMBS). The performance of these sectors did not keep pace with the performance of MBS issued by GSE.

As the financial crisis evolved, investors sought the safety of US Treasury securities. Other sectors with more yield and greater risk were unable to keep pace. Investor fear reached an extreme, such that even high-quality securities lagged significantly. This created opportunities across a wide range of sectors for us to add significant yield advantages at historically attractive levels.

Specifically, we increased the Fund’s holdings in high-quality ABS and CMBS. Certain areas of the ABS market, particularly the residential mortgage segment, faced serious problems, but valuations cheapened in the stronger sectors. This created an attractive combination of strong credit quality and a significant yield advantage.

We also increased our holdings in MBS issued by GSE. As mortgage troubles continued to mount, investors became concerned that GSE would be unable to function without government intervention, even though the underlying mortgages were of much higher quality than those in the subprime market. Eventually, the government did intervene with actions that supported the senior obligations of Fannie Mae and Freddie Mac. MBS issued by GSE reacted positively to the government’s intervention.

OUTLOOK

As a result of past Federal Reserve rate cuts and expectations for more cuts, the yield curve is steep by historical standards. Longer maturity securities now offer significant yield boosts versus shorter alternatives. We will look for opportunities to capitalize on this situation.

The Fund remains overweight in high-quality ABS backed by automobile loans and credit card receivables, which currently offer attractive yields and have strong credit quality due to their secured status and additional credit

enhancements. The Fund is also overweight relative to its Benchmark in CMBS, holding senior securities backed by first mortgages on commercial properties. We see little risk of any ratings downgrades among these holdings due to the strong credit enhancements on the senior securities. We are also maintaining the Fund’s overweight position in non-GSE residential MBS. Although market prices of these securities currently are depressed, our holdings are generally high in quality, and we anticipate a strong recovery in these securities.

AVERAGE ANNUAL TOTAL RETURNS

Periods Ended September 30, 2008


1 Year		Since Inception^(a)

Loomis Sayles Securitized Asset Fund
0.92%		3.40%

Lehman Securitized Index^(b)
5.17		5.14

Lipper US Mortgage Funds Index^(b)
2.68		3.80

Expense Ratio^(c)
Institutional: 0.00%

CUMULATIVE PERFORMANCE

Inception to September 30, 2008

LOGO

Returns do not reflect the taxes that a shareholder would pay on fund distributions or the redemption of shares. Periods of less than one year are not annualized.

WHAT YOU SHOULD KNOW

ADDITIONAL INFORMATION

Index Definitions

Lipper High Current Yield Funds Index is an equally weighted, unmanaged index of typically the 30 largest mutual funds within the high current yield funds investment objective.

Lipper US Mortgage Funds Index is an equally weighted, unmanaged index of typically the 30 largest mutual funds within the US mortgage funds investment objective.

Source: Lipper, Inc.

Lehman High Yield Index covers the universe of fixed rate, non-investment grade debt. Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from countries designated as emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds (SEC registered) of issuers in non-emerging market countries are included. Original issue zeroes, step-up coupon structures, and 144As are also included.

Lehman Securitized Index is an unmanaged index of asset-backed securities, collateralized mortgage-backed securities (ERISA eligible) and fixed rate mortgage-backed securities.

Returns are adjusted for the reinvestment of capital gains distributions and income dividends. Indices are unmanaged and do not have expenses that affect results, unlike most mutual funds. It is not possible to invest directly in an index.

Proxy Voting Information

A description of the Funds’ proxy voting policies and procedures is available without charge, upon request, (i) by calling Loomis Sayles at 800-633-3330; (ii) on the Funds’ website, www.loomissayles.com, and (iii) on the SEC’s website at www.sec.gov. Information about how the Funds voted proxies relating to portfolio securities during the 12-month period ended June 30, 2008 is available on (i) the Funds’ website and (ii) the SEC’s website.

Quarterly Portfolio Schedules

The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q is 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 FUND EXPENSES

Typically, mutual fund shareholders incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, redemption fees and certain exchange fees; and (2) ongoing costs, including management fees, distribution fees (12b-1 fees), and other fund expenses. However, the Funds are unlike other mutual funds; they do not charge any fees or expenses.

You should be aware that shares in the Funds are available only to institutional investment advisory clients of Loomis, Sayles & Company, L.P. (“Loomis Sayles”) and Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) and to participants in “wrap-fee” programs sponsored by broker dealers and investment advisers that may be affiliated or unaffiliated with the Funds, Loomis Sayles or Natixis Advisors. The institutional investment advisory clients of Loomis Sayles and Natixis Advisors pay Loomis Sayles or Natixis Advisors a fee for their investment advisory services, while participants in “wrap fee” programs pay a “wrap” fee to the program’s sponsor. The “wrap fee” program sponsors, in turn, pay a fee to Natixis Advisors. “Wrap fee” program participants should read carefully the wrap fee brochure provided to them by their program’s sponsor and the fees paid by such sponsor to Natixis Advisors. Shareholders pay no additional fees or expenses to purchase shares of the Funds. However, shareholders will indirectly pay a proportionate share of those costs, such as brokerage commissions, taxes and extraordinary expenses, that are borne by the Funds through a reduction in each Fund’s net asset value.

The first line in each Fund’s table below shows the actual amount of Fund expenses ($0) you would have paid on a $1,000 investment in the Fund from April 1, 2008 through September 30, 2008. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual Fund returns and expenses.

The second line in each Fund’s table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio (0%) and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid on your investment for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Loomis Sayles High Income Opportunities Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$904.90	$0.00
Hypothetical (5% return before expenses)	$1,000.00	$1,025.00	$0.00
* Expenses are equal to the Fund’s annualized expense ratio: 0.00%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

Loomis Sayles Securitized Asset Fund


Institutional Class	Beginning Account Value 4/1/2008	Ending Account Value 9/30/2008	Expenses Paid During Period* 4/1/2008 – 9/30/2008
Actual	$1,000.00	$992.30	$0.00
Hypothetical (5% return before expenses)	$1,000.00	$1,025.00	$0.00
* Expenses are equal to the Fund’s annualized expense ratio: 0.00%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 366 (to reflect the half-year period).

BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS

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

In connection with these meetings, the Trustees receive materials that the Funds’ investment adviser 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, if any, and other expenses, including information comparing the Funds’ expenses to those of peer groups of funds and information about any applicable expense caps and fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Funds’ advisers (the “Adviser”), and (v) information obtained through the completion of a questionnaire by the Adviser (the Trustees are consulted as to the information requested through that questionnaire). The Board of Trustees, including the Independent Trustees, also consider other matters such as (i) the Adviser’s financial results and financial condition, (ii) each Fund’s investment objective and strategies and the size, education and experience of the Adviser’s respective investment staffs and their use of technology, external research and trading cost measurement tools, (iii) arrangements in respect of the distribution of the Funds’ shares and the related costs, (iv) the procedures employed to determine the value of the Funds’ assets, (v) the allocation of the Funds’ brokerage, if any, including allocations to brokers affiliated with the Adviser and the use of “soft” commission dollars to pay Fund expenses and to pay for research and other similar services, (vi) the resources devoted to, and the record of compliance with, the Funds’ investment policies and restrictions, policies on personal securities transactions and other compliance policies, and (vii) 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.

The Board of Trustees most recently approved the continuation of the Agreements at their meeting held in June 2008. The Agreements were continued for a one-year period for both Funds. In considering whether to approve the continuation of the Agreements, the Board of Trustees, including the Independent Trustees, did not identify any single factor as determinative. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included the following:

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.

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. Under the terms of the Agreements, the Adviser does not charge the Funds an investment advisory fee or any other fee for services or for bearing expenses. The Trustees considered that, although the Funds do not compensate the Adviser directly for services under the Agreements, the Adviser will typically receive an advisory fee from its advisory clients who have invested in the Funds or from the sponsors of “wrap programs,” who in turn charge the programs’ participants. The Trustees also took into account the demands, complexity and quality of the investment management of the Funds. Because the Funds do not charge an advisory fee, the Trustees did not consider the profitability of the Adviser’s relationship to the 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 fees, of 0%, charged to each of the Funds were fair and reasonable and supported the renewal of the Agreements.

Economies of Scale. The Trustees noted that because the Adviser bears most of the Funds’ expenses, economies of scale were not relevant to these Funds.

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

•

so-called “fallout benefits” to the Adviser, such as the financial and other benefits to the Adviser from being able to offer the Funds to its advisory clients and investors in certain “wrap” programs and engagement of affiliates of the Adviser to provide distribution, administrative and brokerage services to the Funds, and the benefits of research made available to the Adviser by reason of brokerage commissions generated by the Funds’ securities transactions. 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.

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, 2009.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles High Income Opportunities Fund


	Principal Amount		Value (†)


BONDS AND NOTES – 98.4% of Net Assets

NON-CONVERTIBLE BONDS – 92.8%

ABS Car Loan – 1.2%
Capital One Auto Finance Trust, Class A, 2.998%, 4/16/2012(b)	$	500,000	$	458,857
Capital One Auto Finance Trust, Series 2006-C, Class A4, 2.518%, 5/15/2013(b)		170,000		141,838
Capital One Auto Finance Trust, Series 2007-C, Class A4, 5.230%, 7/15/2014		185,000		155,553

				756,248

Aerospace & Defense – 0.8%
Bombardier, Inc., 7.450%, 5/01/2034, 144A		585,000		544,050

Airlines – 2.4%
American Airlines, Inc., Series 93A6, 8.040%, 9/16/2011		76,128		57,477
Continental Airlines, Inc., Series 1997-4B, 6.900%, 7/02/2018		84,214		70,108
Continental Airlines, Inc., Series 1998-1, Class B, 6.748%, 9/15/2018		218,779		175,023
Continental Airlines, Inc., Series 2000-2, Class B, 8.307%, 10/02/2019		15,395		12,239
Continental Airlines, Inc., Series 2001-1, Class B, 7.373%, 6/15/2017		74,637		55,978
Continental Airlines, Inc., Series 971A, 7.461%, 10/01/2016		177,525		154,447
Delta Air Lines, Inc., Series 2007-1, Class A, 6.821%, 2/10/2024		233,734		182,312
Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024		738,392		502,107
Northwest Airlines, Inc., Series 07-1, Class B, 8.028%, 11/01/2017		540,000		334,800

				1,544,491

Automotive – 4.0%
Cummins, Inc., 6.750%, 2/15/2027		139,000		124,612
Ford Motor Co., 6.625%, 2/15/2028		165,000		63,525
Ford Motor Co., 6.625%, 10/01/2028		1,470,000		558,600
Ford Motor Co., 7.125%, 11/15/2025		35,000		13,825
Ford Motor Co., 7.450%, 7/16/2031		695,000		298,850
Ford Motor Co., 7.500%, 8/01/2026		110,000		45,650
Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		825,000		507,010
Ford Motor Credit Co. LLC, 7.250%, 10/25/2011		370,000		235,280
Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		100,000		63,228
General Motors Corp., 7.400%, 9/01/2025		45,000		16,200
General Motors Corp., 8.250%, 7/15/2023(c)		1,060,000		416,050
General Motors Corp., 8.375%, 7/15/2033		25,000		10,000
Goodyear Tire & Rubber Co., 7.000%, 3/15/2028		320,000		236,800

				2,589,630

Brokerage – 0.7%
Lehman Brothers Holdings, Inc., 6.875%, 7/17/2037(d)		245,000		306
Lehman Brothers Holdings, Inc., (fixed rate to 5/03/2027, variable rate thereafter), 6.000%, 5/03/2032(d)		60,000		75
Nuveen Investments, Inc., 10.500%, 11/15/2015, 144A		550,000		423,500

				423,881

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles High Income Opportunities Fund – continued


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Building Materials – 0.8%
Owens Corning, Inc., 6.500%, 12/01/2016	$	85,000	$	75,217
Owens Corning, Inc., 7.000%, 12/01/2036		130,000		104,504
Texas Industries, Inc., 7.250%, 7/15/2013		70,000		60,900
USG Corp., 6.300%, 11/15/2016		365,000		275,575

				516,196

Chemicals – 4.1%
Borden, Inc., 7.875%, 2/15/2023		610,000		280,600
Borden, Inc., 8.375%, 4/15/2016		175,000		59,500
Borden, Inc., 9.200%, 3/15/2021		220,000		110,000
Chemtura Corp., 6.875%, 6/01/2016		924,000		739,200
Georgia Gulf Corp., 10.750%, 10/15/2016(c)		335,000		150,750
Hercules, Inc., 6.500%, 6/30/2029(f)		675,000		452,250
LyondellBasell Industries AF, 8.375%, 8/15/2015, 144A		200,000		94,000
Methanex Corp., 6.000%, 8/15/2015		150,000		131,946
Montell Finance Co., 8.100%, 3/15/2027, 144A		290,000		130,500
Mosaic Global Holdings, Inc., 7.300%, 1/15/2028		235,000		220,900
Mosaic Global Holdings, Inc., 7.375%, 8/01/2018		275,000		273,068
Nalco Finance Holdings, Inc., (step to 9.000% on 2/1/2009), Zero Coupon, 2/01/2014(c)(e)		43,000		38,162

				2,680,876

Construction Machinery – 0.4%
United Rentals North America, Inc., 7.000%, 2/15/2014		400,000		280,000

Consumer Cyclical Services – 0.2%
Kar Holdings, Inc., 10.000%, 5/01/2015(c)		165,000		127,050

Consumer Products – 0.0%
Jostens IH Corp., 7.625%, 10/01/2012		25,000		22,938

Electric – 8.0%
AES Corp. (The), 7.750%, 3/01/2014		160,000		148,800
Allegheny Generating Co., 6.875%, 9/01/2023		100,000		99,750
Dynegy Holdings, Inc., 7.125%, 5/15/2018		195,000		147,225
Dynegy Holdings, Inc., 7.500%, 6/01/2015		100,000		84,500
Dynegy Holdings, Inc., 7.625%, 10/15/2026		325,000		237,250
Dynegy Holdings, Inc., 7.750%, 6/01/2019		350,000		280,000
Dynegy Holdings, Inc., 8.375%, 5/01/2016		280,000		243,600
Edison Mission Energy, 7.625%, 5/15/2027		525,000		425,250
Edison Mission Energy, 7.750%, 6/15/2016		515,000		484,100
NGC Corporation Capital Trust I, Series B, 8.316%, 6/01/2027		460,000		342,700
NRG Energy, Inc., 7.375%, 1/15/2017		435,000		395,850
NSG Holdings LLC, 7.750%, 12/15/2025, 144A		355,000		337,250
Reliant Energy, Inc., 7.875%, 6/15/2017		410,000		303,400
TXU Corp., Series P, 5.550%, 11/15/2014		160,000		119,401
TXU Corp., Series Q, 6.500%, 11/15/2024		1,415,000		901,181
TXU Corp., Series R, 6.550%, 11/15/2034		515,000		316,438
White Pine Hydro Portfolio LLC, 7.260%, 7/20/2015(f)		365,000		351,815

				5,218,510

Food & Beverage – 2.0%
Aramark Services, Inc., 5.000%, 6/01/2012		950,000		798,000
Dean Foods Co., 7.000%, 6/01/2016(c)		470,000		408,900
Marfrig Overseas Ltd., 9.625%, 11/16/2016, 144A		110,000		88,000

				1,294,900


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Gaming – 0.3%
Harrah’s Operating Co., Inc., 5.750%, 10/01/2017	$	350,000	$	91,000
Harrah’s Operating Co., Inc., 10.750%, 2/01/2016, 144A		220,000		112,200

				203,200

Healthcare – 6.4%
Alliance Imaging, Inc., 7.250%, 12/15/2012		320,000		291,200
Boston Scientific Corp., 5.450%, 6/15/2014		20,000		18,700
Boston Scientific Corp., 6.400%, 6/15/2016		135,000		128,250
Boston Scientific Corp., 7.000%, 11/15/2035		250,000		222,500
CHS/Community Health Systems, Inc., 8.875%, 7/15/2015		870,000		826,500
DASA Finance Corp., 8.750%, 5/29/2018, 144A		200,000		168,000
HCA, Inc., 5.750%, 3/15/2014		15,000		11,700
HCA, Inc., 6.375%, 1/15/2015		510,000		401,625
HCA, Inc., 6.500%, 2/15/2016		720,000		570,600
HCA, Inc., 7.050%, 12/01/2027		430,000		290,375
HCA, Inc., 7.500%, 12/15/2023		30,000		21,977
HCA, Inc., 7.500%, 11/06/2033		840,000		596,400
HCA, Inc., 7.690%, 6/15/2025		160,000		118,918
HCA, Inc., 8.360%, 4/15/2024		40,000		31,003
HCA, Inc., MTN, 7.580%, 9/15/2025		200,000		147,346
HCA, Inc., MTN, 7.750%, 7/15/2036		20,000		14,198
Tenet Healthcare Corp., 6.875%, 11/15/2031		450,000		306,000

				4,165,292

Home Construction – 4.7%
Centex Corp., 5.250%, 6/15/2015		125,000		91,875
D.R. Horton, Inc., 5.625%, 9/15/2014		65,000		49,400
Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		1,030,000		906,400
K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2015		15,000		8,550
K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016		690,000		396,750
K. Hovnanian Enterprises, Inc., 6.375%, 12/15/2014		145,000		84,100
K. Hovnanian Enterprises, Inc., 6.500%, 1/15/2014		130,000		76,700
K. Hovnanian Enterprises, Inc., 8.875%, 4/01/2012(c)		10,000		6,350
KB Home, 5.750%, 2/01/2014		90,000		72,450
KB Home, 5.875%, 1/15/2015		390,000		310,050
KB Home, 6.250%, 6/15/2015		265,000		215,975
KB Home, 7.250%, 6/15/2018		290,000		237,800
Lennar Corp., Series B, 5.600%, 5/31/2015		250,000		162,500
Pulte Homes, Inc., 6.000%, 2/15/2035		475,000		339,625
Pulte Homes, Inc., 6.375%, 5/15/2033		100,000		73,000
Toll Brothers Finance Corp., 5.150%, 5/15/2015		40,000		33,829

				3,065,354

Independent Energy – 7.3%
Chesapeake Energy Corp., 6.500%, 8/15/2017		570,000		498,750
Chesapeake Energy Corp., 6.875%, 1/15/2016		100,000		91,250
Chesapeake Energy Corp., 6.875%, 11/15/2020		405,000		346,275
Encore Acquisition Co., 6.000%, 7/15/2015		275,000		218,625
Encore Acquisition Co., 7.250%, 12/01/2017		115,000		94,300
Forest Oil Corp., 7.250%, 6/15/2019		715,000		611,325
Hilcorp Energy I LP, 7.750%, 11/01/2015, 144A		595,000		511,700
Hilcorp Energy I LP, 9.000%, 6/01/2016, 144A		185,000		168,350
Pioneer Natural Resources Co., 5.875%, 7/15/2016		20,000		17,231
Pioneer Natural Resources Co., 6.875%, 5/01/2018		260,000		231,494
Pioneer Natural Resources Co., 7.200%, 1/15/2028		1,640,000		1,411,935

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles High Income Opportunities Fund – continued


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Independent Energy – continued
Swift Energy Co., 7.125%, 6/01/2017	$	600,000	$	510,000
Swift Energy Co., 7.625%, 7/15/2011		20,000		19,000

				4,730,235

Industrial Other – 1.1%
Baldor Electric Co., 8.625%, 2/15/2017		325,000		310,375
Chart Industries, Inc., 9.125%, 10/15/2015		305,000		312,625
Ranhill Labuan Ltd., 12.500%, 10/26/2011, 144A		155,000		74,400

				697,400

Lodging – 0.7%
Host Marriott LP, Series M, 7.000%, 8/15/2012		175,000		156,187
Host Marriott LP, Series O, 6.375%, 3/15/2015		50,000		40,625
Royal Caribbean Cruises Ltd., 7.250%, 6/15/2016		315,000		261,450

				458,262

Media Cable – 4.1%
Charter Communications Operating LLC/CAP, 8.000%, 4/30/2012, 144A		170,000		152,150
Comcast Corp., 5.650%, 6/15/2035		80,000		59,467
CSC Holdings, Inc., 6.750%, 4/15/2012		215,000		196,994
CSC Holdings, Inc., 7.625%, 7/15/2018		1,260,000		1,096,200
CSC Holdings, Inc., 7.875%, 2/15/2018		310,000		272,800
Virgin Media Finance PLC, 8.750%, 4/15/2014		870,000		730,800
Virgin Media Finance PLC, 9.125%, 8/15/2016		175,000		146,562

				2,654,973

Media Non-Cable – 1.2%
Clear Channel Communications, Inc., 4.900%, 5/15/2015		5,000		1,488
Clear Channel Communications, Inc., 5.500%, 12/15/2016		390,000		113,100
Clear Channel Communications, Inc., 5.750%, 1/15/2013		75,000		27,000
Idearc, Inc., 8.000%, 11/15/2016		455,000		123,987
Intelsat Corp., 6.875%, 1/15/2028		235,000		171,550
R.H. Donnelley Corp., Series A-1, 6.875%, 1/15/2013(c)		405,000		157,950
R.H. Donnelley Corp., Series A-2, 6.875%, 1/15/2013		340,000		132,600
R.H. Donnelley Corp., Series A-4, 8.875%, 10/15/2017		160,000		54,400
Tribune Co., 5.250%, 8/15/2015		85,000		25,500

				807,575

Metals & Mining – 0.6%
International Steel Group, Inc., 6.500%, 4/15/2014		75,000		76,170
Novelis, Inc., 7.250%, 2/15/2015		70,000		60,900
United States Steel Corp., 6.050%, 6/01/2017		80,000		69,516
United States Steel Corp., 6.650%, 6/01/2037		275,000		204,520

				411,106

Non-Captive Consumer – 2.6%
SLM Corp., Series A, MTN, 5.000%, 10/01/2013		55,000		34,100
SLM Corp., Series A, MTN, 5.000%, 6/15/2018		65,000		35,750
SLM Corp., Series A, MTN, 5.375%, 1/15/2013		470,000		307,850
SLM Corp., Series A, MTN, 5.375%, 5/15/2014		70,000		43,400
SLM Corp., Series A, MTN, 5.625%, 8/01/2033		850,000		425,000
SLM Corp., Series A, MTN, 8.450%, 6/15/2018		1,135,000		771,800
SLM Corp., MTN, 5.050%, 11/14/2014		60,000		36,600

				1,654,500


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Non-Captive Diversified – 4.7%
CIT Group Funding Co. of Canada, 5.200%, 6/01/2015	$	372,000	$	182,685
CIT Group, Inc., 4.750%, 12/15/2010		148,000		96,385
CIT Group, Inc., 5.400%, 2/13/2012		36,000		20,695
CIT Group, Inc., 5.400%, 1/30/2016		218,000		105,512
CIT Group, Inc., 5.650%, 2/13/2017		342,000		166,885
CIT Group, Inc., 5.800%, 10/01/2036		480,000		219,540
CIT Group, Inc., 5.850%, 9/15/2016		35,000		16,975
CIT Group, Inc., Series A, GMTN, 6.000%, 4/01/2036		32,000		13,120
CIT Group, Inc., GMTN, 4.250%, 2/01/2010		95,000		62,615
CIT Group, Inc., GMTN, 5.000%, 2/13/2014		42,000		23,758
CIT Group, Inc., GMTN, 5.000%, 2/01/2015		290,000		143,346
GMAC LLC, 6.000%, 12/15/2011		500,000		222,319
GMAC LLC, 6.625%, 5/15/2012		852,000		360,710
GMAC LLC, 6.750%, 12/01/2014		1,010,000		387,652
GMAC LLC, 6.875%, 9/15/2011		175,000		78,083
GMAC LLC, 6.875%, 8/28/2012		65,000		25,836
GMAC LLC, 7.000%, 2/01/2012		100,000		40,761
GMAC LLC, 7.250%, 3/02/2011		100,000		47,298
GMAC LLC, 8.000%, 11/01/2031		230,000		86,774
International Lease Finance Corp., Series Q, MTN, 5.250%, 1/10/2013		330,000		212,564
International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		185,000		109,007
International Lease Finance Corp., Series R, MTN, 6.625%, 11/15/2013		340,000		208,427
iStar Financial, Inc., 5.150%, 3/01/2012		130,000		65,000
iStar Financial, Inc., 5.650%, 9/15/2011		45,000		23,400
iStar Financial, Inc., 5.800%, 3/15/2011		20,000		10,200
iStar Financial, Inc., Series B, 5.950%, 10/15/2013		190,000		98,800

				3,028,347

Oil Field Services – 1.6%
Basic Energy Services, Inc., 7.125%, 4/15/2016		330,000		293,700
Grant Prideco, Inc., 6.125%, 8/15/2015		205,000		200,062
North American Energy Partners, Inc., 8.750%, 12/01/2011		620,000		570,400

				1,064,162

Packaging – 0.6%
Stone Container Finance, 7.375%, 7/15/2014		500,000		385,000

Paper – 4.1%
Abitibi-Consolidated, Inc., 6.000%, 6/20/2013		75,000		19,875
Abitibi-Consolidated, Inc., 7.400%, 4/01/2018		40,000		9,200
Abitibi-Consolidated, Inc., 7.500%, 4/01/2028		250,000		57,500
Abitibi-Consolidated, Inc., 8.500%, 8/01/2029		25,000		6,000
Abitibi-Consolidated, Inc., 8.850%, 8/01/2030		190,000		45,600
Bowater, Inc., 6.500%, 6/15/2013		435,000		167,475
Domtar Corp., 5.375%, 12/01/2013		250,000		211,250
Georgia-Pacific LLC, 7.250%, 6/01/2028		215,000		169,850
Georgia-Pacific LLC, 7.375%, 12/01/2025		495,000		399,712
Georgia-Pacific LLC, 7.700%, 6/15/2015		125,000		114,375
Georgia-Pacific LLC, 7.750%, 11/15/2029		525,000		433,125
Georgia-Pacific LLC, 8.000%, 1/15/2024		260,000		228,800
Georgia-Pacific LLC, 8.875%, 5/15/2031		225,000		195,750
Mercer International, Inc., 9.250%, 2/15/2013		140,000		116,550

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles High Income Opportunities Fund – continued


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Paper – continued
Sappi Papier Holding AG, 7.500%, 6/15/2032, 144A	$	290,000	$	204,805
Westvaco Corp., 7.950%, 2/15/2031		140,000		134,024
Westvaco Corp., 8.200%, 1/15/2030		140,000		131,405

				2,645,296

Pharmaceuticals – 2.1%
Elan Financial PLC, 7.750%, 11/15/2011		800,000		724,000
Elan Financial PLC, 8.875%, 12/01/2013		770,000		646,800

				1,370,800

Pipelines – 1.1%
Kinder Morgan Finance, 5.700%, 1/05/2016		130,000		111,800
Kinder Morgan, Inc., Senior Note, 5.150%, 3/01/2015		225,000		190,688
Tennessee Gas Pipeline Co., 7.000%, 10/15/2028(c)		150,000		128,543
Williams Cos., Inc., 7.500%, 1/15/2031		235,000		213,845
Williams Cos., Inc., 7.750%, 6/15/2031		85,000		79,438

				724,314

Refining – 0.8%
Petroplus Finance Ltd., 6.750%, 5/01/2014, 144A		500,000		422,500
Petroplus Finance Ltd., 7.000%, 5/01/2017, 144A		75,000		62,250

				484,750

Retailers – 3.6%
Dillard’s, Inc., 6.625%, 1/15/2018		155,000		96,100
Dillard’s, Inc., 7.000%, 12/01/2028		480,000		244,800
Dillard’s, Inc., 7.130%, 8/01/2018		175,000		111,125
Dillard’s, Inc., 7.875%, 1/01/2023		75,000		45,000
Foot Locker, Inc., 8.500%, 1/15/2022		280,000		253,400
Home Depot, Inc., 5.875%, 12/16/2036		785,000		551,834
Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		180,000		141,920
Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		300,000		234,594
Toys R Us, Inc., 7.375%, 10/15/2018		985,000		640,250

				2,319,023

Supermarkets – 2.7%
Albertson’s, Inc., 7.450%, 8/01/2029		1,075,000		956,136
Albertson’s, Inc., 7.750%, 6/15/2026		220,000		202,217
Albertson’s, Inc., 8.000%, 5/01/2031		30,000		27,803
Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		605,000		490,169
American Stores Co., 8.000%, 6/01/2026		70,000		65,618
Couche-Tard US/Finance, 7.500%, 12/15/2013		40,000		36,800

				1,778,743

Technology – 7.0%
Activant Solutions, Inc., 9.500%, 5/01/2016		90,000		66,600
Amkor Technology, Inc., 7.750%, 5/15/2013		440,000		376,200
Flextronics International Ltd., 6.250%, 11/15/2014		380,000		321,100
Freescale Semiconductor, Inc., 10.125%, 12/15/2016(c)		480,000		307,200
Lucent Technologies, Inc., 6.450%, 3/15/2029		3,020,000		1,842,200
Lucent Technologies, Inc., 6.500%, 1/15/2028		290,000		176,900
Motorola, Inc., 6.500%, 9/01/2025		165,000		126,582
Nortel Networks Ltd., 6.875%, 9/01/2023		125,000		50,000
Nortel Networks Ltd., 10.125%, 7/15/2013		370,000		235,875
Northern Telecom Capital Corp., 7.875%, 6/15/2026		860,000		378,400


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Technology – continued
Seagate Technology HDD Holdings, 6.800%, 10/01/2016	$	750,000	$	656,250
Unisys Corp, 8.000%, 10/15/2012		15,000		12,150

				4,549,457

Textile – 0.4%
Jones Apparel Group, Inc., 6.125%, 11/15/2034		425,000		265,625

Transportation Services – 0.9%
APL Ltd., 8.000%, 1/15/2024(f)		185,000		138,750
Atlas Air, Inc., Series B, 7.680%, 1/02/2014(g)		34,292		34,292
Atlas Air, Inc., Series C, 8.010%, 1/02/2010(g)		347,188		270,807
Overseas Shipholding Group, 7.500%, 2/15/2024		155,000		137,175

				581,024

Wireless – 1.5%
ALLTEL Corp., 7.000%, 7/01/2012		5,000		4,887
ALLTEL Corp., 7.875%, 7/01/2032		170,000		168,725
Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		85,000		56,100
Sprint Capital Corp., 6.875%, 11/15/2028		501,000		335,670
Sprint Nextel Corp., 6.000%, 12/01/2016		502,000		386,540

				951,922

Wirelines – 8.1%
Axtel SAB de CV, 7.625%, 2/01/2017, 144A		765,000		680,238
Cincinnati Bell Telephone Co., 6.300%, 12/01/2028		185,000		131,350
Cincinnati Bell, Inc., 8.375%, 1/15/2014		800,000		696,000
Frontier Communications Corp., 7.000%, 11/01/2025		15,000		9,150
Frontier Communications Corp., 7.125%, 3/15/2019		325,000		258,375
Frontier Communications Corp., 7.450%, 7/01/2035		325,000		198,250
Frontier Communications Corp., 7.875%, 1/15/2027		540,000		405,000
L-3 Communications Corp., Series B, 6.375%, 10/15/2015		25,000		23,000
Level 3 Financing, Inc., 8.750%, 2/15/2017		790,000		572,750
Level 3 Financing, Inc., 9.250%, 11/01/2014		835,000		630,425
Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,030,000		749,325
Qwest Capital Funding, Inc., 6.875%, 7/15/2028		495,000		344,025
Qwest Capital Funding, Inc., 7.625%, 8/03/2021		315,000		239,400
Qwest Capital Funding, Inc., 7.750%, 2/15/2031		280,000		204,400
Qwest Corp., 6.875%, 9/15/2033		175,000		117,687
Qwest Corp., 7.250%, 9/15/2025		10,000		7,450

				5,266,825


TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $78,232,362)				60,261,955


CONVERTIBLE BONDS – 5.6%

Healthcare – 0.7%
Advanced Medical Optics, Inc., 3.250%, 8/01/2026		125,000		81,562
Affymetrix, Inc., 3.500%, 1/15/2038		480,000		336,000
Invitrogen Corp., 1.500%, 2/15/2024		50,000		45,063

				462,625

Industrial Other – 0.2%
Incyte Corp., 3.500%, 2/15/2011		165,000		151,181

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles High Income Opportunities Fund – continued


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Media Non-Cable – 0.4%
Liberty Media LLC, 3.500%, 1/15/2031	$	153,309	$	67,839
Sinclair Broadcast Group, Inc., (Step to 2.000% on 1/15/2011), 4.875%, 7/15/2018(e)		190,000		172,425

				240,264

Non-Captive Diversified – 0.0%
iStar Financial, Inc., 3.291%, 10/01/2012(b)		5,000		2,675

Pharmaceuticals – 1.4%
Epix Pharmaceuticals, Inc., 3.000%, 6/15/2024		45,000		22,500
Human Genome Sciences, Inc., 2.250%, 8/15/2012		325,000		216,938
Valeant Pharmaceuticals International, 3.000%, 8/16/2010		180,000		170,100
Valeant Pharmaceuticals International, 4.000%, 11/15/2013		510,000		477,487

				887,025

REITs – 0.5%
Host Hotels & Resorts, Inc., 2.625%, 4/15/2027, 144A		435,000		337,125

Technology – 0.5%
JDS Uniphase Corp., 1.000%, 5/15/2026		200,000		132,250
Kulicke & Soffa Industries, Inc., 0.500%, 11/30/2008		50,000		48,375
Kulicke & Soffa Industries, Inc., 1.000%, 6/30/2010		45,000		35,269
Maxtor Corp., 5.750%, 3/01/2012(f)		123,000		113,160

				329,054

Wirelines – 1.9%
Level 3 Communications, Inc., 2.875%, 7/15/2010		270,000		212,288
Level 3 Communications, Inc., 6.000%, 9/15/2009		105,000		98,700
Level 3 Communications, Inc., 6.000%, 3/15/2010		1,062,000		929,250

				1,240,238


TOTAL CONVERTIBLE BONDS
(Identified Cost $4,075,798)				3,650,187


TOTAL BONDS AND NOTES
(Identified Cost $82,308,160)				63,912,142


BANK LOANS – 1.2%

Consumer Products – 0.1%
Mega Bloks, Inc., Term Loan B, 8.750%, 7/26/2012(h)		44,884		35,010

Electric – 0.6%
Calpine Corp., First Priority Term Loan, 3/29/2014(i)		435,000		371,172

Food & Beverage – 0.0%
Dole Food Co., Inc., LOC, 4.788%, 4/12/2013(h)		2,041		1,789
Dole Food Co., Inc., Term Loan, 4.738%, 4/12/2013(h)		1,370		1,201
Dole Food Co., Inc., Tranche C Term Loan, 4.795%, 4/12/2013(h)		7,237		6,347

				9,337

Media Non-Cable – 0.4%
Idearc, Inc., Term Loan B, 5.767%, 11/17/2014(h)		204,088		121,688
Tribune Co., Tranche X, 5.541%, 6/04/2009(h)		181,970		168,549

				290,237


	Principal Amount		Value (†)


BANK LOANS – continued

Wirelines – 0.1%
Hawaiian Telecom Communications, Inc., Term Loan C, 6.262%, 6/01/2014(h)	$	60,000	$	41,272


TOTAL BANK LOANS
(Identified Cost $822,396)				747,028


	Shares

COMMON STOCKS – 1.3%

Chemicals – 0.6%
Hercules, Inc.		20,651		408,683

Containers & Packaging – 0.2%
Owens-Illinois, Inc.(c)(g)		3,321		97,638

Oil, Gas & Consumable Fuels – 0.5%
Chesapeake Energy Corp.(c)		9,278		332,709


TOTAL COMMON STOCKS
(Identified Cost $846,012)				839,030


PREFERRED STOCKS – 1.3%

Automotive – 0.2%
Ford Motor Co. Capital Trust II, 6.500%(c)		6,225		95,865

Capital Markets – 0.1%
Lehman Brothers Holdings Capital Trust I, 6.000%(d)		250		40
Lehman Brothers Holdings, Inc., 5.670%(d)		230		16
Lehman Brothers Holdings, Inc., 5.940%(d)		201		7
Lehman Brothers Holdings, Inc., 6.500%(d)		1,182		59
Lehman Brothers Holdings, Inc., 7.250%(d)(g)		30		30
Lehman Brothers Holdings, Inc., 7.950%(d)		1,819		109
Newell Financial Trust I, 5.250%		1,675		64,593

				64,854

Diversified Consumer Services – 0.0%
Six Flags, Inc., 7.250%		2,100		11,739

Electric Utilities – 0.5%
AES Trust III, 6.750%(c)		7,975		305,841

Oil, Gas & Consumable Fuels – 0.4%
El Paso Energy Capital Trust I, 4.750%		8,050		268,166

Thrifts & Mortgage Finance – 0.1%
Federal Home Loan Mortgage Corp., 5.000%(g)(k)		500		900
Federal Home Loan Mortgage Corp., 5.570%(g)(k)		7,750		7,672
Federal Home Loan Mortgage Corp., 5.660%(g)(k)		2,300		2,875
Federal Home Loan Mortgage Corp., 5.700%(g)(k)		800		1,496
Federal Home Loan Mortgage Corp., 5.790%(g)(k)		1,450		2,900
Federal Home Loan Mortgage Corp., 5.810%(g)(k)		550		963
Federal Home Loan Mortgage Corp., 5.900%(g)(k)		1,100		1,375
Federal Home Loan Mortgage Corp., 6.000%(c)(g)(k)		650		1,170
Federal Home Loan Mortgage Corp., 6.420%(g)(k)		450		810
Federal Home Loan Mortgage Corp., 6.550%(g)(k)		1,550		1,674
Federal Home Loan Mortgage Corp., 8.375%(g)(k)		9,450		15,403

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles High Income Opportunities Fund – continued


	Shares		Value (†)


PREFERRED STOCKS – continued

Thrifts & Mortgage Finance – continued
Federal National Mortgage Association, 4.750%(c)(k)		1,000	$	3,100
Federal National Mortgage Association, 5.125%(k)		350		1,225
Federal National Mortgage Association, 5.375%(k)		700		2,310
Federal National Mortgage Association, 5.810%(k)		300		1,080
Federal National Mortgage Association, 6.750%(k)		450		810
Federal National Mortgage Association, 8.250%(c)(k)		14,200		30,956

				76,719


TOTAL PREFERRED STOCKS
(Identified Cost $1,698,929)				823,184


	Shares/ Principal Amount

SHORT-TERM INVESTMENTS – 14.9%
State Street Navigator Securities Lending Prime Portfolio(j)		2,444,943		2,444,943
Repurchase Agreement with State Street Corp. dated 9/30/2008 at 1.300%, to be repurchased at $3,433 on 10/1/2008 collateralized by $5,000 Federal Home Loan Bank, 5.300% due 10/3/2012 valued at $5,130 including accrued interest (Note 2h of Notes to Financial Statements)	$	3,433		3,433
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2008 at 1.300% to be repurchased at $7,257,262 on 10/01/2008 collateralized by $7,330,000 Federal Home Loan Bank, 3.750% due 8/18/2009 valued at $7,403,300 including accrued interest (Note 2h of Notes to Financial Statements)		7,257,000		7,257,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $9,705,376)				9,705,376


TOTAL INVESTMENTS – 117.1%
(Identified Cost $95,380,873)(a)				76,026,760
Other assets less liabilities—(17.1)%				(11,076,464)


NET ASSETS – 100.0%			$	64,950,296

(†) See Note 2a of Notes to Financial Statements.
(a) Federal Tax Information:
At September 30, 2008, net unrealized depreciation on investments based on a cost of $95,484,822 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	159,659
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(19,617,721)

Net unrealized depreciation			$	(19,458,062)

(b)

Variable rate security. Rate as of September 30, 2008 is disclosed.

(c)

All or a portion of this security was on loan to brokers at September 30, 2008.

(d)

Issuer has filed for bankruptcy.

(e)

Step Bond: Coupon is a fixed rate for an initial period then resets at a specified date and rate.

(f)

Illiquid Security. At September 30, 2008, the value of these securities amounted to $1,055,975 or 1.6% of net assets.

(g)

Non-income producing security.

(h)

Variable rate security. Rate shown represents the weighted average rate at September 30, 2008.

(i)

The security has not settled. Contract rates do not take effect until settlement date.

(j)

Represents investment of securities lending collateral.

(k)

Future dividend payments have been eliminated as the issuer has been placed in conservatorship.

144A

GMTN

Global Medium Term Note

LOC

Letter of Credit

MTN

Medium Term Note

REITs

Real Estate Investment Trusts

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Wirelines	10.1	%
Electric	8.6
Technology	7.5
Independent Energy	7.3
Healthcare	7.1
Chemicals	4.7
Home Construction	4.7
Non-Captive Diversified	4.7
Automotive	4.2
Media Cable	4.1
Paper	4.1
Retailers	3.6
Pharmaceuticals	3.5
Supermarkets	2.7
Non-Captive Consumer	2.6
Airlines	2.4
Media Non-Cable	2.0
Food & Beverage	2.0
Other Investments, less than 2% each	16.3
Short-Term Investments	14.9

Total Investments	117.1
Other assets less liabilities	(17.1	)

Net Assets	100.0	%

See accompanying notes to financial statements.

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Securitized Asset Fund


	Principal Amount		Value (†)


BONDS AND NOTES – 150.4% of Net Assets

ABS Car Loan – 3.8%
Americredit Prime Automobile Receivables, Series 2007-2M, Class A2B, 2.867%, 11/08/2010(b)(c)	$	941,567	$	931,497
ARG Funding Corp., Series 2005-2A, Class A5, 3.348%, 5/20/2011(b)(c), 144A		1,700,000		1,561,947
Capital Auto Receivables Asset Trust, Series 2008-1, Class A2B, 3.188%, 9/15/2010(b)(c)		3,000,000		2,996,618
Capital One Auto Finance Trust, Series 2006-C, Class A4, 2.518%, 5/15/2013(b)(c)		845,000		705,017
Capital One Auto Finance Trust, Series 2007-C, Class A4, 5.230%, 7/15/2014(c)		800,000		672,663
Daimler Chrysler Auto Trust, Series 2008-A, Class A2B, 3.337%, 10/08/2010(b)(c)		5,000,000		4,995,279
Merrill Auto Trust Securitization Asset, Series 2008-1, Class B, 6.750%, 4/15/2015(c)		1,305,000		1,182,481
Nissan Auto Receivables Owner Trust, Series 2005-A, Class A4, 3.820%, 7/15/2010(c)		121,021		120,825
Nissan Auto Receivables Owner Trust, Series 2008-B, Class A3, 4.460%, 4/16/2012(c)		1,330,000		1,285,369

				14,451,696

ABS Credit Card – 7.5%
BA Credit Card Trust, Series 2006-C4, Class C4, 2.718%, 11/15/2011(b)(c)		2,000,000		1,934,789
BA Credit Card Trust, Series 2008-A5, Class A5, 3.688%, 12/16/2013(b)(c)		3,645,000		3,580,339
Bank One Issuance Trust, Series 2004-C2, Class C2, 3.288%, 2/15/2017(b)(c)		2,310,000		1,574,048
Capital One Multi-Asset Execution Trust, Series 2007-A5, Class A5, 2.528%, 7/15/2020(b)(c)		2,140,000		1,643,104
Chase Issuance Trust, Series 2005-A9, Class A9, 2.508%, 11/15/2011(b)(c)		500,000		492,961
Chase Issuance Trust, Series 2007-B1, Class B1, 2.738%, 4/15/2019(b)(c)		2,300,000		1,623,857
Citibank Credit Card Issuance Trust, Series 2005-C2, Class C2, 3.646%, 3/24/2017(b)(c)		1,150,000		801,205
Citibank Credit Card Issuance Trust, Series 2006-C4, Class C4, 2.707%, 1/09/2012(b)(c)		300,000		281,097
Citibank Credit Card Issuance Trust, Series 2007-A8, Class A8, 5.650%, 9/20/2019(c)		4,215,000		3,885,897
Citibank Credit Card Issuance Trust, Series 2008-C6, Class C6, 6.300%, 6/20/2014(c)		1,895,000		1,646,612
Discover Card Master Trust, Series 2007-A1, Class A1, 5.650%, 3/16/2020(c)		3,305,000		2,864,585
Discover Card Master Trust, Series 2008-A3, Class A3, 5.100%, 10/15/2013(c)		3,650,000		3,565,025
MBNA Credit Card Master Note Trust, Series 2002-C1, Class C1, 6.800%, 7/15/2014(c)		1,000,000		899,157
MBNA Credit Card Master Note Trust, Series 2004-A3, Class A3, 2.748%, 8/16/2021(b)(c)		1,490,000		1,248,813
World Financial Network Credit Card Master Trust, Series 2004-A, Class C, 3.488%, 3/15/2013(b)(c)		2,000,000		1,919,524
World Financial Network Credit Card Master Trust, Series 2008-A, Class M, 7.487%, 6/15/2014(b)(c)		706,000		703,231

				28,664,244


	Principal Amount		Value (†)


BONDS AND NOTES – continued

ABS Home Equity – 0.7%
Countrywide Asset-Backed Certificates, Series 2006-S3, Class A1, 3.317%, 6/25/2021(b)(c)	$	3,193,567	$	2,556,421

Asset-Backed Securities – 1.6%
CIT Equipment Collateral, Series 2008-VT1, Class A3, 6.590%, 12/22/2014(c)		3,020,000		2,925,868
CNH Equipment Trust, Series 2007-B, Class A2A, 5.460%, 6/15/2010(c)		311,315		312,229
Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035(c)		995,000		714,510
Countrywide Asset-Backed Certificates, Series 2006-S1, Class A2, 5.549%, 8/25/2021(c)		626,128		568,920
Countrywide Asset-Backed Certificates, Series 2006-S3, Class A3, 6.287%, 6/25/2021(c)		895,000		358,000
Countrywide Asset-Backed Certificates, Series 2006-S7, Class A3, 5.712%, 11/25/2035(c)		2,355,000		1,177,500
Residential Asset Mortgage Products, Inc., Series 2004-RZ1, Class AI5, 4.070%, 7/25/2032(c)		231,530		226,918

				6,283,945

Hybrid ARMS – 11.5%
Countrywide Home Loans, Series 2004-HYB4, Class 6A2, 5.447%, 4/20/2035(b)(c)		683,510		525,212
Federal Home Loan Mortgage Corp., 5.949%, 11/01/2036(b)(c)		6,890,922		6,943,975
Federal National Mortgage Association, 6.039%, 2/01/2037(b)(c)		7,920,981		7,974,784
First Horizon Alternative Mortgage Securities, Series 2006-AA3, Class A1, 6.306%, 6/25/2036(b)(c)		5,977,133		4,124,748
Indymac Index Mortgage Loan Trust, Series 2006-AR25, Class 3A1, 6.321%, 9/25/2036(b)(c)		6,850,156		4,589,305
JPMorgan Mortgage Trust, Series 2006-A7, Class 1A3, 5.924%, 1/25/2037(b)(c)		902,768		880,363
Morgan Stanley Mortgage Loan Trust, Series 2005-3AR, Class 5A, 5.588%, 7/25/2035(b)(c)		1,051,160		919,602
Washington Mutual Mortgage Pass Through Certificates, Series 2007-HY6, Class 2A1, 5.694%, 6/25/2037(b)(c)		7,363,267		5,998,296
Washington Mutual Mortgage Pass-Through Certificates, Series 2007-HY2, Class 2A2, 6.412%, 11/25/2036(b)(c)		12,043,997		11,102,165
Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 3A2, 4.997%, 10/25/2035(b)(c)		892,783		774,854

				43,833,304

Mortgage Related – 125.3%
Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A2, 5.165%, 9/10/2047(c)		120,000		117,226
Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A4, 5.180%, 9/10/2047(b)(c)		189,000		171,539
Banc of America Commercial Mortgage, Inc., Series 2006-2, Class A4, 5.739%, 5/10/2045(b)(c)		350,000		316,736
Banc of America Commercial Mortgage, Inc., Series 2006-4, Class A2, 5.522%, 7/10/2046(c)		460,000		442,618
Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A2, 5.634%, 4/10/2049(c)		5,375,000		5,019,314

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Securitized Asset Fund – continued


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Mortgage Related – continued
Bank of America-First Union NB Commercial Mortgage, Series 2001-3, Class A2, 5.464%, 4/11/2037(c)	$	430,000	$	420,792
Bear Stearns Commercial Mortgage Securities, Series 2001-TOP2, Class A2, 6.480%, 2/15/2035(c)		175,000		175,441
Bear Stearns Commercial Mortgage Securities, Series 2005-PW10, Class A2, 5.270%, 12/11/2040(c)		1,601,000		1,567,595
Bear Stearns Commercial Mortgage Securities, Series 2005-T18, Class A2, 4.556%, 2/13/2042(c)		171,000		167,868
Bear Stearns Commercial Mortgage Securities, Series 2006-PW12, Class A2, 5.688%, 9/11/2038(c)		1,000,000		970,255
Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044(c)		225,000		188,606
Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A4, 5.712%, 6/11/2040(b)(c)		150,000		129,235
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD2, Class A2, 5.408%, 1/15/2046(c)		1,057,000		1,023,300
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5, 5.617%, 10/15/2048(c)		5,000,000		4,440,614
Commercial Mortgage Pass Through Certificates, Series 2006-C7, Class A4, 5.768%, 6/10/2046(b)(c)		250,000		225,961
Countrywide Alternative Loan Trust, Series 2006-15CB, Class A1, 6.500%, 6/25/2036(c)		1,297,426		788,835
Countrywide Alternative Loan Trust, Series 2006-J5, Class 4A1, 6.014%, 7/25/2021(b)(c)		1,389,451		1,206,652
Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4, 5.723%, 6/15/2039(b)(c)		2,342,000		2,004,237
Credit Suisse Mortgage Capital Certificates, Series 2008-C1, Class A3, 6.219%, 2/15/2041(b)(c)		1,508,000		1,326,395
CS First Boston Mortgage Securities Corp., Series 2005-7, Class 3A1, 5.000%, 8/25/2020(c)		314,438		280,734
Federal Home Loan Mortgage Corp., 4.500%, 6/01/2021(c)		3,719,947		3,637,342
Federal Home Loan Mortgage Corp., 5.000%, 7/01/2020(c)		58,080		57,989
Federal Home Loan Mortgage Corp., 5.000%, 10/01/2020(c)		359,653		357,961
Federal Home Loan Mortgage Corp., 5.000%, 7/01/2035(c)		610,026		595,180
Federal Home Loan Mortgage Corp., 5.000%, 9/01/2035(c)		806,524		786,896
Federal Home Loan Mortgage Corp., 5.000%, 12/01/2035(c)		156,698		152,884
Federal Home Loan Mortgage Corp., 5.000%, 2/01/2036(c)		312,396		304,793
Federal Home Loan Mortgage Corp., 5.000%, 2/01/2036(c)		660,577		644,501
Federal Home Loan Mortgage Corp., 5.500%, 9/01/2021(c)		7,849,659		7,912,283
Federal Home Loan Mortgage Corp., 5.500%, 12/01/2021(c)		3,588,263		3,616,890
Federal Home Loan Mortgage Corp., 5.500%, 5/01/2035(c)		448,886		447,139
Federal Home Loan Mortgage Corp., 5.500%, 7/01/2037(c)		3,946,678		3,928,850
Federal Home Loan Mortgage Corp., 5.500%, 7/01/2037(c)		1,809,291		1,801,119
Federal Home Loan Mortgage Corp., 5.500%, 8/01/2037(c)		4,608,372		4,587,556
Federal Home Loan Mortgage Corp., 5.975%, 2/01/2037(b)(c)		9,068,995		9,273,389
Federal Home Loan Mortgage Corp., 6.000%, 6/01/2037(c)		4,467,033		4,526,213
Federal Home Loan Mortgage Corp., 6.000%, 6/01/2037(c)		10,914,812		11,059,413
Federal Home Loan Mortgage Corp., 6.000%, 8/01/2037(c)		4,580,541		4,641,224
Federal Home Loan Mortgage Corp., 6.000%, 10/01/2037(c)		4,353,639		4,411,317


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Mortgage Related – continued
Federal Home Loan Mortgage Corp., 6.000%, 11/01/2037(c)	$	6,783,572	$	6,873,441
Federal Home Loan Mortgage Corp., 6.000%, 12/01/2037(c)		1,880,330		1,905,241
Federal Home Loan Mortgage Corp., 6.3430%, 1/01/2035(b)(c)		371,773		381,093
Federal Home Loan Mortgage Corp., 6.500%, 1/01/2038(c)		194,558		199,714
Federal Home Loan Mortgage Corp. (TBA), 5.500%, 7/01/2035(d)		24,910,000		24,777,678
Federal Home Loan Mortgage Corp. (TBA), 6.000%, 1/01/2036(d)		17,000,000		17,207,196
Federal Home Loan Mortgage Corp., Series 2613, Class HI, 5.500%, 2/15/2033(c)		1,025,293		229,289
Federal Home Loan Mortgage Corp., Series 2912, Class EH, 5.500%, 1/15/2035(c)		2,797,000		2,717,344
Federal National Mortgage Association, 4.500%, 7/01/2020(c)		940,618		923,846
Federal National Mortgage Association, 4.500%, 3/01/2021(c)		593,932		579,444
Federal National Mortgage Association, 4.500%, 10/01/2035(c)		844,990		800,548
Federal National Mortgage Association, 5.500%, 5/01/2035(c)		153,638		153,424
Federal National Mortgage Association, 5.500%, 12/01/2035(c)		229,169		228,850
Federal National Mortgage Association, 5.500%, 4/01/2036(c)		156,109		155,818
Federal National Mortgage Association, 5.500%, 4/01/2036(c)		369,523		368,836
Federal National Mortgage Association, 5.500%, 4/01/2036(c)		77,815		77,671
Federal National Mortgage Association, 5.500%, 4/01/2036(c)		2,383,744		2,380,426
Federal National Mortgage Association, 5.500%, 5/01/2036(c)		391,109		390,381
Federal National Mortgage Association, 5.500%, 5/01/2036(c)		625,121		623,957
Federal National Mortgage Association, 5.500%, 6/01/2036(c)		798,754		797,268
Federal National Mortgage Association, 5.500%, 6/01/2036(c)		1,406,317		1,403,701
Federal National Mortgage Association, 5.500%, 6/01/2036(c)		571,470		570,407
Federal National Mortgage Association, 5.500%, 6/01/2036(c)		3,944,216		3,936,877
Federal National Mortgage Association, 5.500%, 8/01/2036(c)		620,938		619,783
Federal National Mortgage Association, 5.500%, 9/01/2036(c)		1,383,889		1,381,314
Federal National Mortgage Association, 5.500%, 12/01/2036(c)		8,213,288		8,198,005
Federal National Mortgage Association, 5.500%, 6/01/2037(c)		3,184,314		3,178,210
Federal National Mortgage Association, 5.736%, 9/01/2036(b)(c)		4,234,790		4,347,693
Federal National Mortgage Association, 6.000%, 5/01/2021(c)		202,358		206,376

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Securitized Asset Fund – continued


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Mortgage Related – continued
Federal National Mortgage Association, 6.000%, 10/01/2034(c)	$	72,853	$	74,023
Federal National Mortgage Association, 6.000%, 4/01/2036(c)		306,770		311,073
Federal National Mortgage Association, 6.000%, 6/01/2036(c)		5,123,204		5,195,079
Federal National Mortgage Association, 6.000%, 6/01/2036(c)		1,716,157		1,740,233
Federal National Mortgage Association, 6.000%, 9/01/2036(c)		1,246,506		1,263,993
Federal National Mortgage Association, 6.000%, 10/01/2036(c)		1,485,231		1,506,068
Federal National Mortgage Association, 6.000%, 11/01/2036(c)		4,007,318		4,063,538
Federal National Mortgage Association, 6.000%, 1/01/2037(c)		941,848		955,062
Federal National Mortgage Association, 6.000%, 10/01/2037(c)		5,845,180		5,926,855
Federal National Mortgage Association, 7.000%, 12/01/2037(c)		197,438		206,521
Federal National Mortgage Association (TBA), 5.000%, 5/01/2019(d)		32,515,000		32,281,282
Federal National Mortgage Association (TBA), 5.000%, 10/01/2034(d)		15,900,000		15,492,562
Federal National Mortgage Association (TBA), 5.500%, 5/01/2035(d)		46,860,000		46,728,230
Federal National Mortgage Association (TBA), 6.000%, 1/01/2036(d)		49,000,000		49,627,788
Federal National Mortgage Association (TBA), 6.500%, 4/01/2035(d)		17,000,000		17,430,304
Federal National Mortgage Association, Series 2003-26, Class 0I, 5.500%, 11/25/2032(c)		22,905,676		4,020,688
Federal National Mortgage Association, Series 2004-2, Class QK, 4.000%, 9/25/2017(c)		10,000,000		9,850,752
Government National Mortgage Association (TBA), 5.500%, 11/01/2035(d)		37,000,000		37,034,706
Government National Mortgage Association, 5.500%, 8/15/2033(c)		78,302		78,599
Government National Mortgage Association, 5.500%, 12/15/2035(c)		349,666		350,664
Government National Mortgage Association, 5.500%, 9/15/2036(c)		2,304,084		2,309,940
Government National Mortgage Association, 6.000%, 6/15/2036(c)		216,402		219,992
Government National Mortgage Association, 6.500%, 9/15/2036(c)		925,950		949,627
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A2, 5.381%, 3/10/2039(c)		2,005,000		1,870,050
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/2039(c)		5,000,000		4,225,555
GS Mortgage Securities Corp. II, Series 2004-GG2, Class A6, 5.396%, 8/10/2038(c)		125,000		116,987
GS Mortgage Securities Corp. II, Series 2005-GG4, Class A2, 4.475%, 7/10/2039(c)		1,130,000		1,102,357
GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, 4.751%, 7/10/2039(c)		7,495,000		6,724,434


	Principal Amount		Value (†)


BONDS AND NOTES – continued

Mortgage Related – continued
GS Mortgage Securities Corp. II, Series 2006-GG6, Class A2, 5.506%, 4/10/2038(c)	$	500,000	$	486,215
GS Mortgage Securities Corp. II, Series 2006-GG8, Class A2, 5.479%, 11/10/2039(c)		4,449,000		4,266,392
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC, Class A3, 6.260%, 3/15/2033(c)		177,499		177,429
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class A4, 5.179%, 12/15/2044(b)(c)		7,000,000		6,340,218
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A2, 5.861%, 4/15/2045(b)(c)		1,065,000		1,037,298
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3, 5.420%, 1/15/2049(c)		4,085,000		3,394,320
LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A3, 4.647%, 7/15/2030(c)		275,000		261,550
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class A4, 5.661%, 3/15/2039(c)		2,440,000		2,198,254
LB-UBS Commercial Mortgage Trust, Series 2006-C7, Class A2, 5.300%, 11/15/2038(c)		2,460,000		2,340,770
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A2, 5.303%, 2/15/2040(c)		11,060,000		10,293,435
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A2, 5.612%, 5/12/2039(b)(c)		1,000,000		971,032
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-1, Class A2, 5.439%, 2/12/2039(c)		4,895,000		4,741,469
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-1, Class A4, 5.424%, 2/12/2039(b)(c)		1,000,000		890,728
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4, 5.909%, 6/12/2046(b)(c)		250,000		228,227
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-3, Class A4, 5.414%, 7/12/2046(c)		1,000,000		876,945
Morgan Stanley Capital I, Class A, 5.328%, 11/12/2041(c)		5,000,000		4,353,098
Morgan Stanley Capital I, Series 2005-HQ6, Class A4A, 4.989%, 8/13/2042(c)		5,280,000		4,753,710
Morgan Stanley Capital I, Series 2005-HQ7, Class A4, 5.208%, 11/14/2042(b)(c)		5,965,000		5,497,225
Morgan Stanley Capital I, Series 2005-T19, Class A4A, 4.890%, 6/12/2047(c)		1,267,000		1,132,595
Morgan Stanley Capital I, Series 2006-T23, Class A2, 5.742%, 8/12/2041(b)(c)		555,000		540,205
Residential Accredit Loans, Inc., Series 2006-QS13, Class 2A1, 5.750%, 9/25/2021(c)		690,003		550,924
Residential Accredit Loans, Inc., Series 2006-QS18, Class 3A3, 5.750%, 12/25/2021(c)		2,945,862		2,413,294
Residential Accredit Loans, Inc., Series 2006-QS6, Class 2A1, 6.000%, 6/25/2021(c)		154,782		134,419
Wachovia Bank Commercial Mortgage Trust, Series 2005-C16, Class A2, 4.380%, 10/15/2041(c)		78,222		76,679

				478,954,116


TOTAL BONDS AND NOTES
(Identified Cost $593,285,288)				574,743,726


SHORT-TERM INVESTMENTS – 12.1%
Federal Home Loan Bank, Discount Notes, 2.340%, 10/10/2008(c)(e)		6,800,000		6,796,022
Federal Home Loan Bank, Discount Notes, 2.050%, 10/14/2008(c)(e)		2,000,000		1,998,519

PORTFOLIO OF INVESTMENTS – as of September 30, 2008

Loomis Sayles Securitized Asset Fund – continued


	Principal Amount		Value (†)


SHORT-TERM INVESTMENTS – continued
Federal Home Loan Bank, Discount Notes, 2.150%, 11/13/2008(c)(e)	$	27,000,000	$	26,930,663
Federal National Mortgage Association, Discount Notes, 2.490%, 12/03/2008(c)(e)		1,000,000		995,625
Federal National Mortgage Association, Discount Notes, 1.950%, 11/13/2008(c)(e)		5,000,000		4,988,354
Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation dated 9/30/2008 at 1.300% to be repurchased at $4,478,162 on 10/01/2008 collateralized by $4,490,000 Federal National Mortgage Association, 4.330% due 7/28/2011 valued at $4,568,575 including accrued interest (Note 2h of Notes to Financial Statements)		4,478,000		4,478,000


TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $46,187,200)				46,187,183


TOTAL INVESTMENTS – 162.5%
(Identified Cost $639,472,488)(a)				620,930,909
Other Assets Less Liabilities—(62.5)%				(238,876,966)


NET ASSETS – 100.0%			$	382,053,943


(†) See Note 2a of Notes to Financial Statements.
(a) Federal Tax Information:
At September 30, 2008, the net unrealized depreciation on investments based on a cost of $639,475,461 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost			$	2,965,659
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value				(21,510,211)

Net unrealized depreciation			$	(18,544,552)

(b)

Variable rate security. Rate as of September 30, 2008 is disclosed.

(c)

All or a portion of this security has been segregated to cover requirements on TBA obligations and futures contracts.

(d)

Delayed delivery. (See Note 2i of Notes to Financial Statements).

(e)

Rate represents discount rate at time of purchase.

144A

TBA

To Be Announced.

At September 30, 2008, open futures contracts sold were as follows:


Futures	Expiration Date	Contracts	Notional Value		Unrealized Appreciation/ (Depreciation)
10 Year U.S. Treasury Note	12/19/2008	318	$	36,450,750	$	304,996
5 Year U.S. Treasury Note	12/31/2008	327	$	36,700,641		(95,121	)

Total					$	209,875

NET ASSET SUMMARY AT SEPTEMBER 30, 2008 (Unaudited)


Mortgage Related	125.3	%
Hybrid ARMS	11.5
ABS Credit Card	7.5
ABS Car Loan	3.8
Asset-Backed Securities	1.6
ABS Home Equity	0.7
Short-Term Investments	12.1

Total Investments	162.5
Other assets less liabilities (including open futures contracts)	(62.5	)

Net Assets	100.0	%

See accompanying notes to financial statements.

STATEMENTS OF ASSETS AND LIABILITIES

September 30, 2008


	High Income Opportunities Fund			Securitized Asset Fund

Assets
Investments at cost	$	88,120,440		$	634,994,488
Repurchase agreements at cost		7,260,433			4,478,000
Net unrealized depreciation		(19,354,113	)		(18,541,579	)

Investments at value		76,026,760			620,930,909
Cash		—			345
Receivable for Fund shares sold		—			38,541
Receivable for securities sold		522,933			—
Dividends and interest receivable		1,716,064			2,541,864
Tax reclaims receivable		7,020			—
Securities lending income receivable		4,260			—
Receivable from broker—variation margin on open futures contracts		—			1,037,508

Total Assets		78,277,037			624,549,167


Liabilities
Due to custodian		522,213			—
Collateral on securities loaned, at value (Note 2)		2,444,943			—
Payable for securities purchased		387,150			—
Payable for delayed delivery securities purchased (Note 2)		—			241,502,215
Payable for Fund shares redeemed		9,972,435			993,009

Total Liabilities		13,326,741			242,495,224

Net Assets	$	64,950,296		$	382,053,943

Net Assets consist of:
Paid-in capital	$	83,693,463		$	400,955,919
Accumulated net investment income		629,102			2,141,622
Accumulated net realized loss on investments and futures contracts		(18,156	)		(2,711,894	)
Net unrealized depreciation on investments and futures contracts		(19,354,113	)		(18,331,704	)

Net Assets	$	64,950,296		$	382,053,943


Net Asset Value and Offering Price
Institutional Class
Net assets	$	64,950,296		$	382,053,943

Shares of beneficial interest		7,861,223			39,804,809

Net asset value, offering and redemption price per share	$	8.26		$	9.60

Value of securities on loan (Note 2)	$	2,331,061		$	—

See accompanying notes to financial statements.

STATEMENTS OF OPERATIONS

For the Year Ended September 30, 2008


	High Income Opportunities Fund			Securitized Asset Fund

Investment Income
Dividends	$	107,970		$	—
Interest		6,712,888			20,385,139
Securities lending income (Note 2)		60,490			—
Less net foreign taxes withheld		(328	)		—

Net investment income		6,881,020			20,385,139


Net Realized and Unrealized Gain (Loss) on Investments and Futures Contracts
Net Realized Gain (Loss) on:
Investments		17,115			6,894,683
Futures contracts		—			(6,749,353	)

Net Change in Unrealized Appreciation (Depreciation) on:
Investments		(18,349,158	)		(17,955,641	)
Futures contracts		—			280,500

Net realized and unrealized loss on investments and futures contracts		(18,332,043	)		(17,529,811	)


Net Increase (Decrease) in Net Assets Resulting from Operations	$	(11,451,023	)	$	2,855,328

See accompanying notes to financial statements.

STATEMENTS OF CHANGES IN NET ASSETS

High Income Opportunities Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	6,881,020		$	4,937,988
Net realized gain on investments		17,115			548,692
Net change in net unrealized appreciation (depreciation) on investments		(18,349,158	)		(1,332,208	)

Increase (decrease) in net assets from operations		(11,451,023	)		4,154,472

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(6,813,880	)		(4,658,683	)
Capital Gains:
Institutional Class		(543,232	)		(10,790	)

Total distributions		(7,357,112	)		(4,669,473	)

Increase (Decrease) in Net Assets Derived from Capital Share Transactions (Note 7)		(314,836	)		41,741,681

Total increase (decrease) in net assets		(19,122,971	)		41,226,680
Net Assets
Beginning of year		84,073,267			42,846,587

End of year	$	64,950,296		$	84,073,267

Accumulated Net Investment Income	$	629,102		$	548,629

Securitized Asset Fund


	Year Ended September 30, 2008			Year Ended September 30, 2007
From Operations:
Net investment income	$	20,385,139		$	13,048,141
Net realized gain (loss) on investments and futures contracts		145,330			(1,735,124	)
Net change in net unrealized appreciation (depreciation) on investments and futures contracts		(17,675,141	)		(1,369,392	)

Increase in net assets resulting from operations		2,855,328			9,943,625

From Distributions to Shareholders:
Net Investment Income:
Institutional Class		(20,848,572	)		(11,831,185	)
Capital Gains:
Institutional Class		—			(53,435	)

Total distributions		(20,848,572	)		(11,884,620	)

Increase in Net Assets Derived from Capital Share Transactions (Note 7)		52,893,796			278,101,365

Total increase in net assets		34,900,552			276,160,370
Net Assets
Beginning of year		347,153,391			70,993,021

End of year	$	382,053,943		$	347,153,391

Accumulated Net Investment Income	$	2,141,622		$	1,776,301

See accompanying notes to financial statements.

FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period.


			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income^(e)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains^(g)
High Income Opportunities Fund

Institutional Class
9/30/2008	$	10.42	$	0.82	$	(2.09	)	$	(1.27	)	$	(0.82	)	$	(0.07	)
9/30/2007		10.39		0.77		0.01	^(h)		0.78			(0.75	)		(0.00	)
9/30/2006		10.50		0.76		(0.10	)		0.66			(0.73	)		(0.04	)
9/30/2005		10.32		0.78		0.17			0.95			(0.77	)		—
9/30/2004^(a)		10.00		0.33		0.25			0.58			(0.26	)		—

Securitized Asset Fund

Institutional Class
9/30/2008	$	10.07	$	0.55	$	(0.45	)	$	0.10		$	(0.57	)	$	—
9/30/2007		10.13		0.55		(0.10	)		0.45			(0.51	)		(0.00	)
9/30/2006^(f)		10.00		0.30		0.02			0.32			(0.19	)		—

(a) For the period April 12, 2004 (commencement of operations) through September 30, 2004.

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

(c) Loomis Sayles has agreed to pay, without reimbursement from the Fund, all expenses associated with the operations of the Fund.

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

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

(f) For the period March 2, 2006 (commencement of operations) through September 30, 2006.

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

(h) The amount shown for a share outstanding does not correspond with the aggregate realized and unrealized gain (loss) on investments for the period due to the timing of sales and redemptions of fund shares in relation to fluctuating market values of investments of the fund.

(i) Portfolio turnover rate has been recalculated to conform with current presentation.

See accompanying notes to financial statements.


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



$	(0.89	)	$	8.26	(13.2	)	$	64,950	—	—	8.47	24
	(0.75	)		10.42	7.7			84,073	—	—	7.35	29
	(0.77	)		10.39	6.6			42,847	—	—	7.36	26
	(0.77	)		10.50	9.5			13,115	—	—	7.40	22
	(0.26	)		10.32	5.9			9,079	—	—	7.03	45




$	(0.57	)		9.60	0.9		$	382,054	—	—	5.55	430
	(0.51	)		10.07	4.6			347,153	—	—	5.43	73
	(0.19	)		10.13	3.3			70,993	—	—	3.02	55	⁽ⁱ⁾

See accompanying notes to financial statements.

NOTES TO FINANCIAL STATEMENTS

September 30, 2008

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

Loomis Sayles Securitized Asset Fund (the “Securitized Asset Fund”)

Each Fund offers Institutional Class Shares. The Funds’ shares are offered exclusively to investors in “wrap fee” programs approved by Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) and/or Loomis, Sayles & Company, L.P. (“Loomis Sayles”) and to institutional advisory clients of Natixis Advisors or Loomis Sayles that, in each case, meet the Funds’ policies as established by Loomis Sayles.

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. Each Fund’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

a. Security Valuation. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional size-trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Equity securities, including closed-end investment companies and exchange traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and approved by the Board of Trustees. Such pricing services generally use the security’s last sale price on the exchange or market where the security is primarily traded or, if there is no reported sale during the day, the closing bid price. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Markets are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking a NOCP, at the most recent bid quotation on the applicable NASDAQ Market. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Futures contracts are priced at their most recent settlement price. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Funds’ investment adviser using consistently applied procedures under the general supervision of the Board of Trustees. Investments in other open-end investment companies are valued at their net asset value each day.

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

b. Security Transactions and Related Investment Income. Security transactions are accounted for on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as the Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. Distributions received from investments in securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds’ investments in real estate investment trusts (“REITs”) are reported to the Funds after the end of the fiscal year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the fiscal year. Estimates are based on the most recent REIT distribution information available. Investment income is recorded net of foreign taxes withheld when applicable. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis.

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

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

The High Income Opportunities Fund may purchase investments of foreign issuers. Investing in securities of foreign issuers involves special risks and considerations not typically associated with investing in U.S. companies and securities of the U.S. government. These risks include revaluation of currencies and the risk of appropriation. Moreover, the markets for securities of many foreign issuers may be less liquid and the prices of such securities may be more volatile than those of comparable U.S. companies and the U.S. government.

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

All contracts are “marked-to-market” daily utilizing interpolated prices determined by an independent pricing service and any gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. At September 30, 2008, there were no open forward foreign currency contracts.

When a Fund enters into a futures contract, it is required to deposit with (or for the benefit of) its broker as “initial margin” an amount of cash or short-term high-quality securities. As the value of the contract changes, the value of the futures contract position increases or declines. At the end of each trading day, the amount of such increase or decline is received or paid, respectively, by and to the holders of these positions. The amount received or paid is known as “variation margin.” Realized gain or loss on a futures position is equal to the net variation margin received or paid over the time the position is held, plus or minus the amount received or paid when the position is 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 the Fund’s ability to close out a futures contract prior to settlement date, and unanticipated movements in the value of securities or interest rates.

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 applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of the Fund’s tax positions taken on federal and state tax returns that remain subject to examinations (tax years ended September 30, 2005—2008), where applicable and has concluded that no provisions for income tax are required. Fund management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Fund. However, management’s

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

The High Income Opportunities Fund may be subject to foreign taxes on income and gains on investments that are accrued based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign governments may also impose taxes or other payments on investments with respect to foreign securities. Such taxes are accrued as applicable.

g. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes for items such as premium amortization and paydown gains and losses. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to defaulted bond income accruals, premium amortization accruals, securities lending collateral gain/loss adjustments, wash sales and futures contracts marked to market. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2008 and 2007 was as follows:


	2008 Distributions Paid From:						2007 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
High Income Opportunities Fund	$	7,183,035	$	174,077	$	7,357,112	$	4,658,683	$	10,790	$	4,669,473
Securitized Asset Fund		20,848,572		—		20,848,572		11,884,620		—		11,884,620

Differences between these amounts and those reported in the Statements of Changes in Net Assets are primarily attributable to different book and tax treatment for short-term capital gains.

As of September 30, 2008, the components of distributable earnings on a tax basis were as follows:


	High Income Opportunities Fund			Securitized Asset Fund
Undistributed ordinary income	$	697,200		$	3,177,200
Undistributed long-term capital gains		85,792			—

Total undistributed earnings		782,992			3,177,200
Deferred net capital losses (post-October 2007)		—			(3,534,625	)
Unrealized appreciation (depreciation)		(19,458,062	)		(18,544,552	)

Total accumulated earnings	$	(18,675,070	)	$	(18,901,977	)

in an amount equal to at least 105% or 102% of the market value 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 of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value of loaned securities for non-U.S. equities; and at least 100% of the market value 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. The value of securities on loan to borrowers and the value of collateral held by the Funds with respect to such loans at September 30, 2008 were as follows:


	Value of Securities on Loan		Value of Collateral
High Income Opportunities Fund	$	2,331,061	$	2,444,943
Securitized Asset Fund		—		—

Subsequent to September 30, 2008, all open securities lending transactions were closed.

3. Purchases and Sales of Securities. For the year ended September 30, 2008, 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 Opportunities Fund	$	—	$	1,384,083	$	23,841,786	$	17,379,364
Securitized Asset Fund		2,365,950,887		2,308,615,608		76,662,959		6,245,006

4. Management Fees and Other Transactions with Affiliates.

a. Management Fees. Loomis Sayles has agreed to pay, without reimbursement from the Funds or the Trust, the following expenses of the Funds: compensation to Trustees of the Trust who are not “interested persons” (as defined in the 1940 Act) of the Trust; registration, filing and other fees in connection with requirements of regulatory authorities; the charges and expenses of any entity appointed by the Funds for custodial, paying agent, shareholder servicing and plan agent services; charges and expenses of the independent registered public accounting firm retained by the Funds; charges and expenses of any transfer agents and registrars appointed by the Funds; any cost of certificates representing shares of the Funds; legal fees and expenses in connection with the day-to-day affairs of the Funds, including registering and qualifying its shares with Federal and State regulatory authorities; expenses of meetings of shareholders and Trustees of the Trust; the costs of services, including services of counsel, required in connection with the preparation of the Funds’ registration statements and prospectuses, including amendments and revisions thereto, annual, semi-annual and other periodic reports of the Funds, and notices and proxy solicitation material furnished to shareholders of the Funds or regulatory authorities, and any costs of printing or mailing these items; and the Funds’ expenses of bookkeeping, accounting and financial reporting, including related clerical expenses.

NOTES TO FINANCIAL STATEMENTS – continued

September 30, 2008

Loomis Sayles serves as investment adviser to each Fund. Under the terms of each management agreement, Loomis Sayles does not charge the Funds an investment advisory fee, also known as a management fee, or any other fee for those services or for bearing those expenses. Although the Funds do not compensate Loomis Sayles directly for services under the advisory agreement, Loomis Sayles will typically receive an advisory fee from the sponsors of “wrap programs,” who in turn charge the programs’ participants.

b. Administrative Fees. Natixis Advisors provides certain administrative services for the Funds and subcontracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Loomis Sayles has agreed to pay, without reimbursement from the Trust or Funds, fees to Natixis Advisors for services to the Funds under each agreement.

c. Service and Distribution Fees. The Trust has entered into a distribution agreement with Natixis Distributors, L.P. (“Natixis Distributors”), a wholly-owned subsidiary of Natixis US. Pursuant to this agreement, Natixis Distributors serves as principal underwriter of the Funds. Natixis Distributors currently is not paid a fee for serving as distributor for the Funds. Loomis Sayles has agreed to reimburse Natixis Distributors to the extent that Natixis Distributors incurs expenses in connection with any redemption of Fund shares.

d. Trustees Fees and Expenses. The Funds do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distributors, Natixis US, or their affiliates. The Chairperson of the Board receives a retainer fee at the annual rate of $200,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $65,000. Each Independent Trustee also receives a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attends in person and $3,750 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chair receives an additional retainer fee at the annual rate of $10,000. Each Contract Review and Governance Committee member is compensated $5,000 for each Committee meeting that he or she attends in person and $2,500 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,250 for each Committee meeting that he or she attends in person and $3,125 for each meeting that he or she attends telephonically. These fees are allocated among the funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust III, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”) and the Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each Fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings. Loomis Sayles has agreed to pay the pro rata portion of Trustees fees and expenses for each Fund, without reimbursement from the Trust or Funds.

5. Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and the Hansberger International Series, participates in a $200,000,000 committed line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.09% 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. Loomis Sayles has agreed to pay the pro rata portion of commitment fees for each Fund, without reimbursement from the Trust or Funds.

Prior to March 12, 2008, each fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participated in a $75,000,000 committed line of credit provided by State Street Bank.

For the year ended September 30, 2008, the Funds had no borrowings under these agreements.

6. Concentration of Risk. The Securitized Asset Fund is a non-diversified fund. Compared with diversified mutual funds, the Securitized Asset Fund may invest a greater percentage of its assets in a particular company. Therefore, the Securitized Asset Fund’s returns could be significantly affected by the performance of any one of the small number of bond issuers in its portfolio.

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


	High Income Opportunities Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

	Shares		Amount			Shares		Amount
Issued from the sale of shares	1,980,419		$	19,260,155		5,003,754		$	52,835,635
Issued in connection with the reinvestment of distributions	380,809			3,709,039		190,501			1,995,422
Redeemed	(2,571,913	)		(23,284,030	)	(1,244,842	)		(13,089,376	)

Increase (decrease) from capital share transactions	(210,685	)	$	(314,836	)	3,949,413		$	41,741,681


	Securitized Asset Fund

	Year Ended September 30, 2008					Year Ended September 30, 2007

	Shares		Amount			Shares		Amount
Issued from the sale of shares	14,774,496		$	146,455,592		34,557,748		$	349,398,198
Issued in connection with the reinvestment of distributions	20,764			205,641		12,259			123,960
Redeemed	(9,456,660	)		(93,767,437	)	(7,110,836	)		(71,420,793	)

Increase (decrease) from capital share transactions	5,338,600		$	52,893,796		27,459,171		$	278,101,365

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees of Loomis Sayles Funds I and Shareholders of Loomis Sayles High Income Opportunities Fund and Loomis Sayles Securitized Asset Fund:

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles High Income Opportunities Fund and Loomis Sayles Securitized Asset Fund, each a series of Loomis Sayles Funds I (collectively, “the Funds”), at September 30, 2008, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 21, 2008

2008 U.S. TAX DISTRIBUTION INFORMATION TO SHAREHOLDERS (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2008, a percentage of dividends distributed by the Fund listed below qualify for the dividends received deduction for corporate shareholders. These percentages are as follows:


Fund		Qualifying Percentage
High Income Opportunities Fund		0.90%

Capital Gains Distributions. Pursuant to Internal Revenue Section 852(b), the following Fund paid distributions, which have been designated as capital gains distributions for the fiscal year ended September 30, 2008.


Fund	Amount
High Income Opportunities Fund	$	174,077

Qualified Dividend Income. For the fiscal year ended September 30, 2008, 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 5% to 15% depending on an individual’s tax bracket. If the Fund pays a distribution during calendar year 2008, complete information will be reported in conjunction with Form 1099-DIV.


Fund
High Income Opportunities Fund

TRUSTEE AND OFFICER INFORMATION

The tables below provide certain information regarding the Trustees and officers of Loomis Sayles Funds I (the “Trust”). Unless otherwise indicated, the address of all persons below is 399 Boylston Street, Boston, MA 02116. The Trust’s Statement of Additional Information includes additional information about the Trustees of the Trust and is available by calling Loomis Sayles at 800-343-2029.


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen* and Other Directorships Held**

INDEPENDENT TRUSTEES
Graham T. Allison, Jr. (1940)	Trustee Since 2003 Contract Review and Governance Committee Member	Douglas Dillon Professor and Director of the Belfer Center for Science and International Affairs, John F. Kennedy School of Government, Harvard University	41 Director, Taubman Centers, Inc. (real estate investment trust)

Charles D. Baker (1956)	Trustee Since 2005 Contract Review and Governance Committee Member	President and Chief Executive Officer, Harvard Pilgrim Health Care (health plan)	41 None

Edward A. Benjamin (1938)	Trustee Since 2002 Chairman of the Contract Review and Governance Committee	Retired	41 None

Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Audit Committee	President and Chief Executive Officer, Cain Brothers & Company, Incorporated (investment banking)	41 Director, Sheridan Healthcare Inc. (physician practice management)

Kenneth A. Drucker (1945)	Trustee Since 2008 Contract Review and Governance Committee Member	Formerly, Treasurer, Sequa Corp. (manufacturing)	41 Director, M Fund, Inc. (registered investment company)

Jonathan P. Mason (1958)	Trustee Since 2007 Audit Committee Member	Chief Financial Officer, Cabot Corp. (specialty chemicals); formerly, Vice President and Treasurer, International Paper Company; formerly, Chief Financial Officer, Carter Holt Harvey (forest products)	41 None

Sandra O. Moose (1942)	Chairperson of the Board of Trustees since November 2005 Trustee since 2003 Ex officio member of the Audit Committee and Contract Review and Governance Committee	President, Strategic Advisory Services (management consulting); formerly, Senior Vice President and Director, The Boston Consulting Group, Inc. (management consulting)	41 Director, Verizon Communications; Director, Rohm and Haas Company (specialty chemicals); Director, AES Corporation (international power company)


Name and Year of Birth	Position(s) Held with the Trusts, Length of Time Served and Term of Office*	Principal Occupation(s) During Past 5 Years**	Number of Portfolios in Fund Complex Overseen* and Other Directorships Held**

Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School; and formerly, Dean for Finance & Chief Financial Officer, Harvard Medical School	41 None

INTERESTED TRUSTEES
Robert J. Blanding¹ (1947) 555 California Street San Francisco, CA 94104	Trustee Since 2002 President and Chief Executive Officer since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	41 None

John T. Hailer² (1960)	Trustee Since 2003	President and Chief Executive Officer-U.S. and Asia, Natixis Global Asset Management, L.P.; formerly, President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P., Natixis Distributors, L.P. and Natixis Global Associates, Inc.	41 None

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

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

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


Name and Year of Birth	Position(s) Held with the Trusts	*Term of Office and Length of Time Served**	Principal Occupation During Past 5 Years**

OFFICERS OF THE TRUST
Coleen Downs Dinneen (1960)	Secretary, Clerk and Chief Legal Officer	Since September 2004	Executive Vice President, General Counsel, Secretary and Clerk (formerly, Senior Vice President, Deputy General Counsel, Assistant Secretary and Assistant Clerk), Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.

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

David Giunta (1965)	Executive Vice President	Since March 2008	President and Chief Executive Officer, Natixis Distribution Corporation, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; formerly, President, Fidelity Charitable Gift Fund; and formerly, Senior Vice President, Fidelity Brokerage Company

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

Michael C. Kardok (1959)	Treasurer, Principal Financial and Accounting Officer	Since October 2004	Senior Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.; and formerly, Senior Director, PFPC Inc.

Robert Krantz (1964)	Executive Vice President	Since September 2007	Executive Vice President, Natixis Asset Management Advisors, L.P. and Natixis Distributors, L.P.

*	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.

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.

Item 3. Audit Committee Financial Expert.

The Board of Trustees of the Registrant has established an audit committee. Ms. Cynthia L. Walker, Mr. Daniel M. Cain and Mr. Jonathan P. Mason 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
	2007		2008		2007		2008		2007		2008		2007		2008
Loomis Sayles Funds I	$	372,586	$	352,741	$	—	$	17,960	$	86,274	$	112,821	$	—	$	—

1.	Audit-related fees consist of the performance of agreed-upon procedures related to the Registrant’s deferred compensation plan and services related to the implementation of a new accounting standard.

2.	The tax fees consist of a review of year-end shareholder reporting and a review of the Registrant’s tax returns (2007 and 2008).

Aggregate fees billed to the Registrant for non-audit services during 2007 and 2008 were $86,274 and $130,781, respectively.

Fees billed by the Principal Accountant for services rendered to the Adviser and Control Affiliates.

The following table sets forth the non-audit services provided by the Registrant’s principal accountant to Loomis, Sayles & Company, L.P. and entities controlling, controlled by or under common control with Loomis, Sayles & Company, L.P. that provide ongoing services to the Registrant (“Control Affiliates”) for the last two fiscal years.


	Audit-related fees				Tax fees				All other fees
	2007		2008		2007		2008		2007		2008
Control Affiliates	$	12,000	$	12,000	$	—	$	—	$	—	$	—

Aggregate fees billed to Control Affiliates for non-audit services during 2007 and 2008 were $12,000 and $12,000, respectively.

None of the audit-related, tax and other services provided by the Registrant’s principal accountant were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

Audit Committee Pre Approval Policies.

Annually, the Registrant’s Audit Committee reviews the audit, audit-related, tax and other non-audit services together with the projected fees, for services proposed to be rendered to the Trust and/or other entities for which pre-approval is required during the upcoming year. Any subsequent revisions to already pre-approved services or fees (including fee increases) and requests for pre-approval of new services would be presented for consideration quarterly as needed.

If, in the opinion of management, a proposed engagement by the Registrant’s independent accountants needs to commence before the next regularly scheduled Audit Committee meeting, any member of the Audit Committee who is an independent Board member is authorized to pre-approve the engagement, but only for engagements to provide audit, audit related and tax services. This approval is subject to review of the full Audit Committee at its next quarterly meeting. All other engagements require the approval of all the members of the Audit Committee.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

Included as part of the Report to Shareholders filed as Item 1 herewith.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Securities Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.


(a)	(1)	Code of Ethics required by Item 2 hereof, filed herewith as exhibit (a)(1).

(a)	(2)	Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith as Exhibits (a)(2)(1) and (a)(2)(2), respectively.

(a)	(3)	Not applicable.

(b)		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002 are filed herewith as Exhibit (b).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Loomis Sayles Funds I

By:		/s/ Robert J. Blanding
Name:		Robert J. Blanding
Title:		President and Chief Executive Officer
Date:		November 19, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


By:		/s/ Robert J. Blanding
Name:		Robert J. Blanding
Title:		President and Chief Executive Officer
Date:		November 19, 2008

By:		/s/ Michael C. Kardok
Name:		Michael C. Kardok
Title:		Treasurer
Date:		November 19, 2008