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, 2010

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:

Loomis Sayles Small Cap Growth Fund

Loomis Sayles Small Cap Value Fund

TABLE OF CONTENTS
Fund and Manager Review	1
Portfolio of Investments	15
Statements of Assets and Liabilities	29
Statements of Operations	30
Statements of Changes in Net Assets	31
Financial Highlights	33
Notes to Financial Statements	35

ANNUAL REPORT

SEPTEMBER 30, 2010

LOOMIS SAYLES SMALL CAP GROWTH FUND

Fund and manager review

FUND FACTS

Managers:

Mark F. Burns, CFA

John Slavik, CFA

Symbols:

Institutional Class	LSSIX
Retail Class	LCGRX

Objective:

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

Strategy:

Invests at least 80% of its net assets (plus any borrowings made for investment purposes) in equity securities of companies with market capitalizations that fall within the capitalization range of the Russell 2000 Index or is $3 billion or less at the time of investment. Unlike the Index, the Fund may invest in companies of any size.

The fund may invest any portion of its assets in Canadian securities and up to 20% of assets in other foreign securities, including emerging markets securities.

Fund Inception Date:

December 31, 1996

Net Assets:

$127.8 million

Market Conditions

The period began with the stocks of financially-sound companies returning to favor after a six-month period in which highly-leveraged companies dominated performance. Stock performance remained robust through the first quarter of 2010, as investors generally remained upbeat about the economic recovery. Beginning in April, widely-publicized issues involving sovereign credit in Southern Europe, a slowing economy in China, lackluster domestic employment growth and the Gulf of Mexico oil spill weighed heavily on investor sentiment. These concerns fed growing anticipation of an economic slowdown, and stocks sold off through the next several months. Late in the period, investor sentiment shifted once again, as economic data were not as dire as many expected. In addition, talk about renewed Federal Reserve Board action to boost economic growth sparked investor optimism, and stocks rallied to close out the period.

Performance Results

For the 12 months ended September 30, 2010, Institutional Class shares of Loomis Sayles Small Cap Growth Fund returned 21.16%. The fund outperformed its benchmark, the Russell 2000 Growth Index, which returned 14.79% for the period.

Explanation of Fund Performance

The fund’s strong performance relative to its benchmark was due primarily to stock selection in the healthcare and consumer discretionary sectors. In healthcare, shares of ev3, a medical device company focused on catheter-based technologies, rose in the first half of 2010 after the company announced it would be acquired by Covidien. In addition, Incyte, a biotechnology company developing treatments for breast cancer, arthritis and bone marrow diseases, advanced after reporting better-than-expected earnings due to improved cost management. In the consumer discretionary sector, shares of DSW, a footwear retailer, benefitted from stronger sales of seasonal products, while shares of

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IMAX, a designer and manufacturer of projection and sound systems for theaters, advanced due to strong box office attendance at IMAX theatres and increased IMAX theater installations.

Utilities was the only sector in the fund with a negative impact on performance. One of the leading detractors from performance was Neutral Tandem, a telecommunication services company that fell in the first half of 2010 after reporting two consecutive quarters of disappointing growth. The company experienced a decline in pricing and lower-than-expected traffic, and the stock was sold.

Throughout the period, we reduced the fund’s weight in technology, but we still remain positive on the sector, and it remained one of the fund’s largest allocations. Some of the companies the fund owned were acquired by other companies, while we sold F5 Networks because it reached the fund’s maximum allowed market capitalization. We redeployed most of the assets from these sales into the producer durables, energy and consumer discretionary sectors. In producer durables, we added exposure to aerospace supply companies. In energy, we increased the fund’s allocation to exploration and production and energy service companies. Within consumer discretionary, we boosted exposure to auto parts companies.

Outlook

We have a positive view about the equity markets, despite the many potential obstacles that investors could face. Although the domestic economy is growing at a disappointing pace and employment remains a concern, the global economy appears to be expanding at a solid pace, particularly in Asia. We believe that many companies, either directly or indirectly linked to global economic developments, should benefit from this trend. We also believe that equity market volatility has started to diminish. Meanwhile, corporate profits appear to be growing surprisingly well for a period of sluggish growth. Based on historical trends for equity price-to-earnings multiples, we continue to believe that stock prices are low relative to earnings and represent an attractive opportunity.

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 fund shares can be adversely affected by changes in currency exchange rates and by 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 U.S. 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.

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LOOMIS SAYLES SMALL CAP GROWTH FUND

Average Annual Returns

September 30, 2010

	1 year			5 years			10 years
Institutional Class (Inception 12/31/96)		21.16	%		4.83	%		-5.74	%
Retail Class (Inception 12/31/96)		20.87			4.56			-5.98
Comparative Performance
Russell 2000 Growth Index(c)(d)		14.79			2.35			-0.13
Russell 2000 Index(c)		13.35			1.60			4.00
Lipper Small-Cap Growth Funds Index(c)		14.86			1.30			-0.70
Gross expense ratio (before fee waivers and/or expense  reimbursements)*
Institutional: 1.01%        Retail: 1.43%
Net expense ratio (after fee waivers and/or expense reimbursements)*
Institutional: 1.00%        Retail: 1.25%

* As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/11.

Cumulative Performance

September 30, 2000 to September 30, 2010^(a)(b)

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

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

^(a) Cumulative performance is shown for the Institutional Class. Performance of the Retail Class would be lower due to higher fees and expenses.

^(b) The mountain chart is based on the initial investment minimum of $100,000 for the Institutional Class.

^(c) See page 7 for a description of the indices.

^(d) Effective August 20, 2010, the Russell 2000 Growth Index replaced the Russell 2000 Index as the fund’s primary benchmark.

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LOOMIS SAYLES SMALL CAP VALUE FUND

Fund and manager review

FUND FACTS

Managers:

Joseph Gatz, CFA

Daniel Thelen, CFA

Symbols:

Institutional Class	LSSCX
Retail Class	LSCRX
Admin Class	LSVAX

Objective:

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

Strategy:

Invests at least 80% of its net assets (plus any borrowings made for investment purposes) in equity securities of companies with market capitalizations that fall within the capitalization range of the Russell 2000 Index or is $3 billion or less at the time of investment. Unlike the Index, the Fund may invest in companies of any size.

The fund may invest up to 20% of its assets in securities of foreign issuers including emerging market securities.

Fund Inception Date:

May 13, 1991

Class Inception Date:

Institutional Class: May 13, 1991

Retail Class: December 31, 1996

Admin Class: January 2, 1998

Net Assets:

$912.2 million

Market Conditions

The equity markets were quite volatile during the period, trending higher, then lower, for weeks at a time. They ended on a positive note, with a double-digit rally during September. In general, mid-cap stocks outpaced small-cap stocks, and the growth style outperformed the value style, with banks and insurance stocks notable laggards. Real estate investment trusts (REITs) represented the top-performing segment of the Russell 2000 Value Index for the 12-month period, gaining more than 22%.

Performance Results

For the 12 months ended September 30, 2010, Institutional Class shares of Loomis Sayles Small Cap Value Fund returned 11.39%. The fund modestly underperformed its benchmark, the Russell 2000 Value Index, which returned 11.84% for the period.

Explanation of Fund Performance

After a strong start, the fund lagged during the market rally that occurred during the first four months of 2010. While our focus on more stable business models and better balance sheets was somewhat out of phase with the market during that January-April rally, the fund proved resilient during a more difficult market in May and June. During the late spring/early summer sell-off, the fund’s orientation toward more stable companies and attention to value proved defensive in a weaker market. From a sector perspective, the fund was most challenged by performance in the financial services, materials and processing and consumer staples sectors. Within financials, the fund’s underweight in the surging REIT area created an especially strong headwind to performance.

The consumer discretionary, producer durable and technology sectors made the most positive contributions to performance during the period. Despite generally disappointing unemployment and economic statistics, sectors and stocks sensitive to economic growth performed well. The consumer discretionary sector’s

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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.

The fund can invest a significant percentage of assets in foreign securities and the value of fund shares can be adversely affected by changes in currency exchange rates and by 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 U.S. 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.

Fossil, a watch and accessories designer, was the fund’s top contributor. The company reported better-than-expected earnings, while expansion into new products and a shift toward higher price-point watches contributed to an improved outlook. Technology holding Sybase, an enterprise database and mobility software provider, also was among the top performers. The company’s stock rose sharply after SAP announced it would purchase Sybase for cash at a 55% premium.

Trading activity was modestly higher during the year, as we took profits in certain outperforming sectors and added to positions in lagging sectors. In the REIT segment, the additions of apartment owner UDR, data center operator DuPont Fabros Technology and healthcare facility manager BioMed Realty Trust reflected improving fundamentals. We also increased exposure to consumer discretionary, with the additions of auto supplier Tenneco and media and Internet content provider Liberty Media-Starz. We reduced the fund’s healthcare exposure by selling Almost Family and Medical Action Industries following company-specific disappointments. We also reduced the fund’s energy weight, selling Mariner Energy after the company agreed to be acquired by Apache. We also sold Penn Virginia and Hornbeck Offshore Services on deteriorating fundamentals.

Outlook

We have a positive view about the equity markets, despite the many potential obstacles that investors could face. Although the domestic economy is growing at a disappointing pace and employment remains a concern, the global economy appears to be expanding at a solid pace, particularly in Asia. We believe that many companies, either directly or indirectly linked to global economic developments, should benefit from this trend. We also believe that equity market volatility has started to diminish. Meanwhile, corporate profits appear to be growing surprisingly well for a period of sluggish growth. Based on historical trends for equity price-to-earnings multiples, we continue to believe that stock prices are low relative to earnings and represent an attractive opportunity.

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LOOMIS SAYLES SMALL CAP VALUE FUND

Average Annual Returns

September 30, 2010

	1 year			5 years			10 years
Institutional Class (Inception 5/13/91)		11.39	%		3.10	%		7.84	%
Retail Class (Inception 12/31/96)		11.10			2.84			7.57
Admin Class (Inception 1/2/98)		10.89			2.58			7.29
Comparative Performance
Russell 2000 Value Index(c)		11.84			0.73			7.72
Russell 2000 Index(c)		13.35			1.60			4.00
Lipper Small-Cap Core Funds Index(c)		13.83			2.14			4.98
Gross expense ratio (before fee waivers and/or expense reimbursements)*
Institutional: 0.94%        Retail: 1.31%        Admin: 1.77%
Net expense ratio (after fee waivers and/or expense reimbursements)*
Institutional: 0.90%        Retail: 1.15%        Admin: 1.40%

* As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/11.

Cumulative Performance

September 30, 2000 to September 30, 2010^(a)(b)

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

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

^(a) Cumulative performance is shown for the Institutional Class. Performance of the Retail and Admin Classes would be lower due to higher fees and expenses.

^(b) The mountain chart is based on the initial investment minimum of $100,000 for the Institutional Class.

^(c) See page 7 for a description of the Indices.

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ADDITIONAL INFORMATION

Index Definitions

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

Lipper Small-Cap Core Funds Index is an unmanaged index that tracks the average performance of the 30 largest small-cap core funds according to Lipper Inc.

Lipper Small-Cap Growth Funds Index is an unmanaged index that tracks the average performance of the 30 largest small-cap growth funds according to Lipper Inc.

Source: Lipper, Inc.

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

Russell 2000 Growth Index is an unmanaged index that measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2000 Value Index is an unmanaged index that measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

Proxy Voting Information

A description of the funds’ proxy voting policies and procedures is available without charge, upon request, (i) by calling Loomis Sayles at 800-633-3330; (ii) on the funds’ website, www.loomissayles.com, and (iii) on the SEC’s website, www.sec.gov. Information about how the funds voted proxies relating to portfolio securities during the 12 months ended June 30, 2010 is available on (i) the funds’ website and (ii) the SEC’s website.

Quarterly Portfolio Schedules

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

UNDERSTANDING YOUR FUND’S EXPENSES

As a mutual fund shareholder you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution and/or service fees (12b-1 fees), and other fund expenses. 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, 2010 through September 30, 2010. 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

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

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

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

Loomis Sayles Small Cap Growth Fund

Institutional Class	Beginning Account Value 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period* 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,050.10		$5.14
Hypothetical (5% return before expenses)		$1,000.00		$1,020.05		$5.06
Retail Class
Actual		$1,000.00		$1,048.00		$6.42
Hypothetical (5% return before expenses)		$1,000.00		$1,018.80		$6.33
*Expenses are equal to the Fund's annualized expense ratio (after waiver/reimbursement): 1.00% and 1.25%, for Institutional and Retail Class, respectively, multiplied by the average account value over the period multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

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Loomis Sayles Small Cap Value Fund

Institutional Class	Beginning Account Value 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period* 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,015.10		$4.55
Hypothetical (5% return before expenses)		$1,000.00		$1,020.56		$4.56
Retail Class
Actual		$1,000.00		$1,014.30		$5.81
Hypothetical (5% return before expenses)		$1,000.00		$1,019.30		$5.82
Admin Class
Actual		$1,000.00		$1,013.20		$7.07
Hypothetical (5% return before expenses)		$1,000.00		$1,018.05		$7.08
*Expenses are equal to the Fund's annualized expense ratio (after waiver/reimbursement): 0.90%, 1.15% and 1.40%, for Institutional, Retail and Admin Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

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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 (the “Adviser”) believes to be reasonably necessary for the Trustees to evaluate the Agreements. These materials generally include, among other items, (i) information on the investment performance of the Funds and the performance of peer groups of funds and the Funds’ performance benchmarks, (ii) information on the Funds’ advisory fees and other expenses, including information comparing the Funds’ expenses to the fees charged to institutional accounts with similar strategies managed by the Adviser and to those of peer groups of funds and information about applicable expense caps and fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Adviser and (v) information obtained through the completion 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, if applicable, allocations to brokers affiliated with the Adviser and the use of “soft” commission dollars to pay Fund expenses and to pay for research and other similar services, (vi) the resources devoted to, and the record of compliance with, the Funds’ investment policies and restrictions, policies on personal securities transactions and other compliance policies, (vii) information about amounts invested by the Funds’ portfolio managers in the Funds or in similar accounts that they manage and (viii) the general economic outlook with particular emphasis on the mutual fund industry. Throughout the process, the Trustees are afforded the opportunity to ask questions of and request additional materials from the Adviser.

In addition to the materials requested by the Trustees in connection with their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board 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

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showing each Fund’s performance and fee differentials against each Fund’s peer group of funds, performance ratings provided by a third-party, total return information for various periods, and third-party performance rankings for various periods comparing a Fund against its peer group. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review and Governance Committee and/or the full Board 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 Trustees also receive periodic updates between meetings.

The Board of Trustees most recently approved the continuation of the Agreements at their meeting held in June 2010. The Agreements were continued for a one-year period for the 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. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

The nature, extent and quality of the services provided to the Funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by the Adviser and its affiliates to the Funds and the resources dedicated to the Funds by the Adviser and its affiliates, including recent or planned investments by the Adviser in additional personnel or other resources. 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.

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 of funds for certain (although not necessarily all) periods, the Board concluded that other factors

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relevant to performance supported renewal of the relevant Agreement. These factors included one or more of the following: (1) that the underperformance was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Adviser that were reasonable and consistent with the Fund’s investment objective and policies; (2) that the Fund’s performance, although lagging in certain recent periods, was stronger over the longer term; and (3) that although the Fund’s performance lagged that of its relevant peer group for certain recent periods, performance was stronger when compared to the Fund’s relevant performance benchmark.

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 (such as institutional separate accounts), as well as information about differences in such fees. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage and the greater regulatory costs associated with the management of mutual fund assets. In evaluating each Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund and the need for the Adviser to offer competitive compensation. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps. 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 changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser

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

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense waivers or caps. The Trustees noted that although each Fund’s management fee was not subject to breakpoints, each Fund’s management fee and overall net expense ratio was below the median fee for a peer group of funds and that each of the Funds was subject to an expense cap. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and a relative basis) and the profitability to the Adviser and its affiliates of their relationships with the Funds, as discussed above.

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

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

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

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

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

• so-called “fallout benefits” to the Adviser, such as the engagement of affiliates of the Adviser to provide distribution, administrative and brokerage services to the Funds, and the benefits of research made available to the Adviser by reason of brokerage commissions 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.

13  |

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

Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that each of the existing Agreements should be continued through June 30, 2011.

|  14

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Growth Fund

Shares		Description	Value (†)
	Common Stocks – 97.0% of Net Assets
		Aerospace & Defense – 2.6%
	32,053	HEICO Corp.	$	1,462,899
	83,429	Hexcel Corp.(b)		1,484,202
	12,230	Ladish Co., Inc.(b)		380,720
				3,327,821
		Air Freight & Logistics – 2.0%
	26,385	Atlas Air Worldwide Holdings, Inc.(b)		1,327,166
	40,117	HUB Group, Inc., Class A(b)		1,173,823
				2,500,989
		Auto Components – 2.0%
	137,915	Amerigon, Inc.(b)		1,420,524
	39,144	Tenneco, Inc.(b)		1,134,002
				2,554,526
		Biotechnology – 5.6%
	16,413	Alexion Pharmaceuticals, Inc.(b)		1,056,341
	72,990	Alkermes, Inc.(b)		1,069,303
	72,991	Cepheid, Inc.(b)		1,365,661
	48,809	Clinical Data, Inc.(b)		823,408
	60,236	Incyte Corp.(b)		963,174
	33,204	Pharmasset, Inc.(b)		979,518
	34,932	Regeneron Pharmaceuticals, Inc.(b)		957,137
				7,214,542
		Building Products – 0.9%
	63,325	Trex Company, Inc.(b)		1,207,608
		Capital Markets – 3.3%
	48,549	Evercore Partners, Inc., Class A		1,388,987
	17,114	Greenhill & Co., Inc.		1,357,482
	30,669	Stifel Financial Corp.(b)		1,419,668
				4,166,137
		Commercial Banks – 2.0%
	35,707	Signature Bank(b)		1,386,860
	27,646	SVB Financial Group(b)		1,169,979
				2,556,839
		Commercial Services & Supplies – 2.0%
	35,054	EnerNOC, Inc.(b)		1,101,046
	37,897	Waste Connections, Inc.(b)		1,502,995
				2,604,041
		Communications Equipment – 1.6%
	81,774	Ciena Corp.(b)		1,273,221
	69,525	Infinera Corp.(b)		811,357
				2,084,578

See accompanying notes to financial statements.

15  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Growth Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Computers & Peripherals – 0.9%
	41,954	Netezza Corp.(b)	$	1,130,660
		Construction & Engineering – 0.8%
	96,436	MasTec, Inc.(b)		995,219
		Diversified Consumer Services – 0.8%
	35,222	K12, Inc.(b)		1,022,495
		Diversified Financial Services – 1.0%
	39,103	MSCI, Inc., Class A(b)		1,298,611
		Electrical Equipment – 1.2%
	51,016	Polypore International, Inc.(b)		1,538,642
		Electronic Equipment, Instruments & Components – 1.1%
	58,890	IPG Photonics Corp.(b)		1,421,605
		Energy Equipment & Services – 2.6%
	130,346	Newpark Resources, Inc.(b)		1,094,906
	20,832	Oceaneering International, Inc.(b)		1,122,012
	41,009	T-3 Energy Services, Inc.(b)		1,072,385
				3,289,303
		Food Products – 1.0%
	31,790	Diamond Foods, Inc.		1,303,072
		Health Care Equipment & Supplies – 8.6%
	76,849	AGA Medical Holdings, Inc.(b)		1,072,812
	68,626	Align Technology, Inc.(b)		1,343,697
	71,302	DexCom, Inc.(b)		942,613
	61,702	Insulet Corp.(b)		872,466
	74,240	MELA Sciences, Inc.(b)		484,045
	49,213	NxStage Medical, Inc.(b)		939,968
	36,637	ResMed, Inc.(b)		1,202,060
	24,398	Thoratec Corp.(b)		902,238
	57,981	Volcano Corp.(b)		1,506,346
	51,746	Zoll Medical Corp.(b)		1,669,844
				10,936,089
		Health Care Providers & Services – 3.8%
	56,585	Bio-Reference Labs, Inc.(b)		1,180,363
	70,722	Hanger Orthopedic Group, Inc.(b)		1,028,298
	21,844	HMS Holdings Corp.(b)		1,287,485
	23,430	MWI Veterinary Supply, Inc.(b)		1,352,380
				4,848,526
		Health Care Technology – 2.0%
	69,278	MedAssets, Inc.(b)		1,457,609
	30,016	SXC Health Solutions Corp.(b)		1,094,684
				2,552,293

See accompanying notes to financial statements.

|  16

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Growth Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Hotels, Restaurants & Leisure – 2.3%
	38,468	Life Time Fitness, Inc.(b)	$	1,518,332
	15,559	Panera Bread Co., Class A(b)		1,378,683
				2,897,015
		Household Durables – 1.0%
	40,812	Tempur-Pedic International, Inc.(b)		1,265,172
		Internet Software & Services – 6.5%
	41,692	Ancestry.com, Inc.(b)		948,910
	50,443	Constant Contact, Inc.(b)		1,080,993
	56,744	GSI Commerce, Inc.(b)		1,401,577
	23,901	MercadoLibre, Inc.(b)		1,725,174
	74,036	Monster Worldwide, Inc.(b)		959,507
	47,341	Vocus, Inc.(b)		874,862
	26,814	WebMD Health Corp.(b)		1,337,214
				8,328,237
		IT Services – 1.0%
	107,119	Sapient Corp.		1,282,214
		Machinery – 1.1%
	21,019	Bucyrus International, Inc.		1,457,668
		Media – 0.8%
	58,368	Imax Corp.(b)		984,084
		Oil, Gas & Consumable Fuels – 5.3%
	65,153	Brigham Exploration Co.(b)		1,221,619
	41,437	Comstock Resources, Inc.(b)		931,918
	22,646	Concho Resources, Inc.(b)		1,498,486
	43,873	Oasis Petroleum, Inc.(b)		849,820
	45,804	Rosetta Resources, Inc.(b)		1,075,936
	47,439	World Fuel Services Corp.		1,233,888
				6,811,667
		Pharmaceuticals – 1.4%
	137,379	Inspire Pharmaceuticals, Inc.(b)		817,405
	67,423	Nektar Therapeutics(b)		995,838
				1,813,243
		Professional Services – 3.6%
	32,530	Advisory Board Co. (The)(b)		1,436,199
	59,009	ICF International, Inc.(b)		1,479,356
	24,838	IHS, Inc., Class A(b)		1,688,984
				4,604,539
		Road & Rail – 0.7%
	21,918	Genesee & Wyoming, Inc., Class A(b)		951,022

See accompanying notes to financial statements.

17  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Growth Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Semiconductors & Semiconductor Equipment – 7.1%
	79,779	Advanced Energy Industries, Inc.(b)	$	1,041,914
	38,032	Cavium Network, Inc.(b)		1,093,800
	31,710	Cymer, Inc.(b)		1,175,807
	117,230	GT Solar International, Inc.(b)		981,215
	23,727	Hittite Microwave Corp.(b)		1,130,592
	36,723	Netlogic Microsystems, Inc.(b)		1,012,820
	25,427	Power Integrations, Inc.		808,324
	25,571	Silicon Laboratories, Inc.(b)		937,177
	30,534	Varian Semiconductor Equipment Associates, Inc.(b)		878,769
				9,060,418
		Software – 9.9%
	23,196	ArcSight, Inc.(b)		1,010,418
	111,409	Ariba, Inc.(b)		2,105,630
	34,667	Blackboard, Inc.(b)		1,249,399
	31,768	Concur Technologies, Inc.(b)		1,570,610
	56,428	Informatica Corp.(b)		2,167,399
	54,837	SuccessFactors, Inc.(b)		1,376,957
	40,341	Ultimate Software Group, Inc. (The)(b)		1,558,776
	50,125	VanceInfo Technologies, Inc., ADR(b)		1,621,043
				12,660,232
		Specialty Retail – 6.9%
	42,032	DSW, Inc., Class A(b)		1,206,318
	44,064	hhgregg, Inc.(b)		1,091,025
	48,302	Hibbett Sports, Inc.(b)		1,205,135
	29,727	J. Crew Group, Inc.(b)		999,422
	29,148	Monro Muffler Brake, Inc.		1,344,014
	59,731	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		1,744,145
	44,052	Vitamin Shoppe, Inc.(b)		1,209,227
				8,799,286
		Textiles, Apparel & Luxury Goods – 3.6%
	45,785	Carter’s, Inc.(b)		1,205,519
	51,251	Crocs, Inc.(b)		666,776
	24,043	Phillips-Van Heusen Corp.		1,446,427
	68,232	Volcom, Inc.(b)		1,304,596
				4,623,318
		Total Common Stocks
		(Identified Cost $94,605,630)		124,091,711

See accompanying notes to financial statements.

|  18

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Growth Fund – continued

Principal Amount		Description	Value (†)
	Short-Term Investments – 1.3%
$	1,633,165	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2010 at 0.000% to be repurchased at $1,663,165 on 10/01/2010 collateralized by $1,665,000 Federal Home Loan Bank, 0.625% due 1/13/2012 valued at $1,669,163 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $1,633,165)	$	1,633,165
		Total Investments – 98.3%
		(Identified Cost $96,238,795)(a)		125,724,876
		Other assets less liabilities—1.7%		2,120,477
		Net Assets – 100.0%	$	127,845,353
	(†)See Note 2 of Notes to Financial Statements.
	(a)Federal Tax Information:
	At September 30, 2010, the net unrealized appreciation on investments based on a cost of $96,756,618 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		$	30,505,784
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value			(1,537,526	)
	Net unrealized appreciation		$	28,968,258

(b) Non-income producing security.

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

See accompanying notes to financial statements.

19  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Growth Fund – continued

Industry Summary at September 30, 2010 (Unaudited)

Software	9.9	%
Health Care Equipment & Supplies	8.6
Semiconductors & Semiconductor Equipment	7.1
Specialty Retail	6.9
Internet Software & Services	6.5
Biotechnology	5.6
Oil, Gas & Consumable Fuels	5.3
Health Care Providers & Services	3.8
Textiles, Apparel & Luxury Goods	3.6
Professional Services	3.6
Capital Markets	3.3
Aerospace & Defense	2.6
Energy Equipment & Services	2.6
Hotels, Restaurants & Leisure	2.3
Commercial Services & Supplies	2.0
Commercial Banks	2.0
Auto Components	2.0
Health Care Technology	2.0
Air Freight & Logistics	2.0
Other Investments, less than 2% each	15.3
Short-Term Investments	1.3
Total Investments	98.3
Other assets less liabilities	1.7
Net Assets	100.0	%

See accompanying notes to financial statements.

|  20

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Value Fund

Shares		Description	Value (†)
	Common Stocks – 99.0% of Net Assets
		Air Freight & Logistics – 1.0%
	187,245	Atlas Air Worldwide Holdings, Inc.(b)	$	9,418,424
		Auto Components – 1.8%
	512,555	Dana Holding Corp.(b)		6,314,678
	300,750	Goodyear Tire & Rubber Co. (The)(b)		3,233,062
	225,991	Tenneco, Inc.(b)		6,546,959
				16,094,699
		Building Products – 1.1%
	142,250	Armstrong World Industries, Inc.(b)		5,904,797
	348,440	Griffon Corp.(b)		4,247,484
				10,152,281
		Capital Markets – 2.7%
	555,653	Ares Capital Corp.		8,695,969
	698,225	Fifth Street Finance Corp.		7,778,227
	161,713	JMP Group, Inc.		986,449
	162,890	Stifel Financial Corp.(b)		7,540,178
				25,000,823
		Chemicals – 4.2%
	270,934	Calgon Carbon Corp.(b)		3,928,543
	541,390	Ferro Corp.(b)		6,978,517
	251,232	Koppers Holdings, Inc.		6,750,604
	80,553	Minerals Technologies, Inc.		4,746,183
	244,931	Olin Corp.		4,937,809
	263,186	WR Grace & Co.(b)		7,353,417
	233,915	Zep, Inc.		4,079,477
				38,774,550
		Commercial Banks – 7.2%
	520,673	Cathay General Bancorp		6,190,802
	83,912	City National Corp.		4,453,210
	495,700	CVB Financial Corp.		3,722,707
	482,716	First Financial Bancorp		8,051,703
	552,161	First Horizon National Corp.(b)		6,300,152
	417,314	First Midwest Bancorp, Inc.		4,811,630
	161,834	IBERIABANK Corp.		8,088,463
	2,273,275	Popular, Inc.(b)		6,592,498
	183,036	Prosperity Bancshares, Inc.		5,943,179
	228,219	Signature Bank(b)		8,864,026
	423,986	Sterling Bancshares, Inc.		2,276,805
				65,295,175
		Commercial Services & Supplies – 4.1%
	86,860	Brink’s Co. (The)		1,997,780
	147,833	McGrath Rentcorp		3,540,600

See accompanying notes to financial statements.

21  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Commercial Services & Supplies – continued
	579,499	Rollins, Inc.	$	13,548,687
	444,373	Standard Parking Corp.(b)		7,598,778
	174,849	Team, Inc.(b)		3,009,151
	191,730	Waste Connections, Inc.(b)		7,604,012
				37,299,008
		Communications Equipment – 1.1%
	217,400	ADTRAN, Inc.		7,674,220
	179,671	Tekelec(b)		2,328,536
				10,002,756
		Construction & Engineering – 0.4%
	210,339	MYR Group, Inc.(b)		3,447,456
		Consumer Finance – 1.4%
	150,355	Cash America International, Inc.		5,262,425
	363,696	Dollar Financial Corp.(b)		7,590,336
				12,852,761
		Containers & Packaging – 0.5%
	225,272	Temple-Inland, Inc.		4,203,576
		Distributors – 0.5%
	134,464	Core-Mark Holding Co., Inc.(b)		4,163,006
		Diversified Financial Services – 1.3%
	322,962	MarketAxess Holdings, Inc.		5,483,895
	311,941	PHH Corp.(b)		6,569,477
				12,053,372
		Electric Utilities – 2.3%
	178,898	ALLETE, Inc.		6,517,254
	131,699	ITC Holdings Corp.		8,198,263
	224,693	UIL Holdings Corp.		6,327,355
				21,042,872
		Electrical Equipment – 3.7%
	64,937	AZZ, Inc.		2,781,901
	223,929	Baldor Electric Co.		9,046,732
	163,553	Encore Wire Corp.		3,354,472
	266,554	GrafTech International Ltd.(b)		4,166,239
	237,682	II-VI, Inc.(b)		8,872,669
	10,651	LaBarge, Inc.(b)		133,031
	123,425	Thomas & Betts Corp.(b)		5,062,893
				33,417,937
		Electronic Equipment, Instruments & Components – 3.4%
	313,561	Cognex Corp.		8,409,706
	131,288	Littelfuse, Inc.(b)		5,737,286

See accompanying notes to financial statements.

|  22

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Electronic Equipment, Instruments & Components – continued
	537,821	Methode Electronics, Inc.	$	4,883,415
	75,054	Rofin-Sinar Technologies, Inc.(b)		1,904,870
	241,876	ScanSource, Inc.(b)		6,709,640
	328,375	TTM Technologies, Inc.(b)		3,214,791
				30,859,708
		Energy Equipment & Services – 2.6%
	191,015	Dresser-Rand Group, Inc.(b)		7,046,543
	157,568	Lufkin Industries, Inc.		6,917,235
	282,687	Newpark Resources, Inc.(b)		2,374,571
	133,752	Oceaneering International, Inc.(b)		7,203,883
				23,542,232
		Food & Staples Retailing – 1.0%
	94,879	BJ’s Wholesale Club, Inc.(b)		3,937,479
	375,547	Spartan Stores, Inc.		5,445,431
				9,382,910
		Food Products – 3.0%
	136,464	Corn Products International, Inc.		5,117,400
	634,943	Darling International, Inc.(b)		5,409,714
	186,239	Fresh Del Monte Produce, Inc.(b)		4,041,386
	168,066	J & J Snack Foods Corp.		7,047,008
	124,041	Lance, Inc.		2,642,073
	545,153	Pilgrim’s Pride Corp.(b)		3,063,760
				27,321,341
		Gas Utilities – 1.4%
	432,671	UGI Corp.		12,378,717
		Health Care Equipment & Supplies – 2.0%
	126,173	Haemonetics Corp.(b)		7,384,906
	112,062	Teleflex, Inc.		6,362,880
	124,562	West Pharmaceutical Services, Inc.		4,273,722
				18,021,508
		Health Care Providers & Services – 1.3%
	103,792	MEDNAX, Inc.(b)		5,532,114
	222,122	WellCare Health Plans, Inc.(b)		6,432,653
				11,964,767
		Hotels, Restaurants & Leisure – 2.1%
	149,999	Bob Evans Farms, Inc.		4,210,472
	205,689	California Pizza Kitchen, Inc.(b)		3,509,054
	248,627	Isle of Capri Casinos, Inc.(b)		1,780,169
	362,827	Wyndham Worldwide Corp.		9,966,858
				19,466,553

See accompanying notes to financial statements.

23  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Household Durables – 1.4%
	197,326	Jarden Corp.	$	6,142,759
	308,949	Leggett & Platt, Inc.		7,031,679
				13,174,438
		Industrial Conglomerates – 0.7%
	162,146	Raven Industries, Inc.		6,143,712
		Insurance – 5.3%
	218,449	Aspen Insurance Holdings Ltd.		6,614,636
	271,528	Employers Holdings, Inc.		4,281,996
	104,597	Hanover Insurance Group, Inc. (The)		4,916,059
	299,373	HCC Insurance Holdings, Inc.		7,810,642
	496,165	Old Republic International Corp.		6,871,885
	123,616	ProAssurance Corp.(b)		7,119,045
	114,083	Reinsurance Group of America, Inc.		5,509,068
	97,569	RLI Corp.		5,524,357
				48,647,688
		Internet & Catalog Retail – 0.5%
	162,622	HSN, Inc.(b)		4,862,398
		Internet Software & Services – 0.6%
	193,225	IAC/InterActiveCorp(b)		5,076,021
		IT Services – 3.0%
	82,314	Alliance Data Systems Corp.(b)		5,371,812
	277,971	Broadridge Financial Solutions, Inc.		6,357,197
	141,530	iGATE Corp.		2,567,354
	90,789	Lender Processing Services, Inc.		3,016,918
	275,970	Wright Express Corp.(b)		9,854,889
				27,168,170
		Life Sciences Tools & Services – 0.8%
	25,067	Mettler-Toledo International, Inc.(b)		3,119,337
	157,729	Pharmaceutical Product Development, Inc.		3,910,102
				7,029,439
		Machinery – 5.5%
	334,348	Actuant Corp., Class A		7,676,630
	439,916	Albany International Corp., Class A		8,323,211
	467,709	Altra Holdings, Inc.(b)		6,889,353
	296,505	Commercial Vehicle Group, Inc.(b)		3,018,421
	370,402	John Bean Technologies Corp.		5,967,176
	42,038	Middleby Corp. (The)(b)		2,664,789
	146,570	RBC Bearings, Inc.(b)		4,980,449
	644,979	Wabash National Corp.(b)		5,217,880
	117,284	Wabtec Corp.		5,605,002
				50,342,911

See accompanying notes to financial statements.

|  24

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	COMMON STOCKS – continued
		Marine – 0.5%
	113,347	Kirby Corp.(b)	$	4,540,681
		Media – 4.0%
	163,892	Arbitron, Inc.		4,584,059
	139,112	Harte-Hanks, Inc.		1,623,437
	211,322	John Wiley & Sons, Inc., Class A		8,634,617
	176,394	Liberty Media-Starz, Series A(b)		11,444,443
	243,733	Madison Square Garden, Inc., Class A(b)		5,137,891
	183,346	Scholastic Corp.		5,100,686
				36,525,133
		Metals & Mining – 1.9%
	139,270	Haynes International, Inc.		4,863,308
	560,885	Horsehead Holding Corp.(b)		5,535,935
	166,083	Reliance Steel & Aluminum Co.		6,897,427
				17,296,670
		Multiline Retail – 0.6%
	486,031	Fred’s, Inc. Class A		5,735,166
		Oil, Gas & Consumable Fuels – 2.4%
	208,851	Berry Petroleum Co., Class A		6,626,842
	263,059	Cloud Peak Energy, Inc.(b)		4,800,827
	248,742	Comstock Resources, Inc.(b)		5,594,208
	191,195	Rosetta Resources, Inc.(b)		4,491,170
				21,513,047
		Paper & Forest Products – 0.5%
	94,118	Deltic Timber Corp.		4,216,486
		Pharmaceuticals – 0.7%
	371,504	Obagi Medical Products, Inc.(b)		3,900,792
	44,881	Perrigo Co.		2,882,258
				6,783,050
		Real Estate Management & Development – 0.4%
	222,381	Forestar Group, Inc.(b)		3,791,596
		REITs – 0.9%
	235,691	Potlatch Corp.		8,013,494
		REITs – Apartments – 2.5%
	332,085	American Campus Communities, Inc.		10,108,668
	108,261	Mid-America Apartment Communities, Inc.		6,309,451
	309,208	UDR, Inc.		6,530,473
				22,948,592

See accompanying notes to financial statements.

25  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		REITs – Diversified – 1.1%
	49,755	Digital Realty Trust, Inc.	$	3,069,883
	268,619	DuPont Fabros Technology, Inc.		6,755,768
				9,825,651
		REITs – Healthcare – 0.9%
	357,947	Omega Healthcare Investors, Inc.		8,035,910
		REITs – Mortgage – 0.8%
	1,780,247	Chimera Investment Corp.		7,031,976
		REITs – Office Property – 0.8%
	425,904	BioMed Realty Trust, Inc.		7,632,200
		REITs – Storage – 1.0%
	101,476	Sovran Self Storage, Inc.		3,845,940
	623,990	U-Store-It Trust		5,210,317
				9,056,257
		REITs – Triple Net Lease – 0.7%
	268,632	National Retail Properties, Inc.		6,745,350
		Road & Rail – 1.7%
	165,880	Genesee & Wyoming, Inc., Class A(b)		7,197,533
	182,599	Old Dominion Freight Line, Inc.(b)		4,641,667
	329,319	Vitran Corp., Inc.(b)		3,606,043
				15,445,243
		Semiconductors & Semiconductor Equipment – 2.6%
	145,681	Applied Micro Circuits Corp.(b)		1,456,810
	251,428	Cohu, Inc.		3,165,479
	261,876	Diodes, Inc.(b)		4,475,461
	341,235	ON Semiconductor Corp.(b)		2,460,304
	665,150	Teradyne, Inc.(b)		7,409,771
	509,153	TriQuint Semiconductor, Inc.(b)		4,887,869
				23,855,694
		Software – 0.9%
	187,010	Progress Software Corp.(b)		6,190,031
	115,527	Radiant Systems, Inc.(b)		1,975,512
				8,165,543
		Specialty Retail – 2.7%
	194,583	Genesco, Inc.(b)		5,814,140
	139,041	Jo-Ann Stores, Inc.(b)		6,194,277
	305,125	PEP Boys-Manny Moe & Jack		3,228,222
	864,336	Sally Beauty Holdings, Inc.(b)		9,680,563
				24,917,202

See accompanying notes to financial statements.

|  26

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Value Fund – continued

Shares		Description	Value (†)
	Common Stocks – continued
		Textiles, Apparel & Luxury Goods – 1.6%
	134,057	Fossil, Inc.(b)	$	7,210,926
	222,164	Kenneth Cole Productions, Inc., Class A(b)		3,703,474
	335,905	Movado Group, Inc.(b)		3,654,646
				14,569,046
		Thrifts & Mortgage Finance – 1.2%
	516,533	MGIC Investment Corp.(b)		4,767,599
	412,680	Washington Federal, Inc.		6,297,497
				11,065,096
		Trading Companies & Distributors – 0.2%
	82,827	Textainer Group Holdings Ltd.		2,214,794
		Water Utilities – 0.5%
	272,189	Middlesex Water Co.		4,583,663
		Total Common Stocks
		(Identified Cost $765,997,036)		903,108,749
Principal Amount
	Short-Term Investments – 1.0%
$	8,982,191	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2010 at 0.000% to be repurchased at $8,982,191 on 10/01/2010 collateralized by $9,140,000 Federal Home Loan Bank, 0.625% due 1/13/2012 valued at $9,162,850 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $8,982,191)		8,982,191
		Total Investments – 100.0%
		(Identified Cost $774,979,227)(a)		912,090,940
		Other assets less liabilities—0.0%		139,445
		Net Assets – 100.0%	$	912,230,385
	(†)See Note 2 of Notes to Financial Statements.
	(a)Federal Tax Information:
	At September 30, 2010, the net unrealized appreciation on investments based on a cost of $777,579,088 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		$	152,125,601
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value			(17,613,749	)
	Net unrealized appreciation		$	134,511,852

(b) Non-income producing security.

REITs Real Estate Investment Trusts

See accompanying notes to financial statements.

27  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Small Cap Value Fund – continued

Industry Summary at September 30, 2010 (Unaudited)

Commercial Banks	7.2	%
Machinery	5.5
Insurance	5.3
Chemicals	4.2
Commercial Services & Supplies	4.1
Media	4.0
Electrical Equipment	3.7
Electronic Equipment, Instruments & Components	3.4
Food Products	3.0
IT Services	3.0
Capital Markets	2.7
Specialty Retail	2.7
Semiconductors & Semiconductor Equipment	2.6
Energy Equipment & Services	2.6
REITs – Apartments	2.5
Oil, Gas & Consumable Fuels	2.4
Electric Utilities	2.3
Hotels, Restaurants & Leisure	2.1
Health Care Equipment & Supplies	2.0
Other Investments, less than 2% each	33.7
Short-Term Investments	1.0
Total Investments	100.0
Other assets less liabilities	0.0
Net Assets	100.0	%

See accompanying notes to financial statements.

|  28

Statement of Assets and Liabilities

September 30, 2010

	Small Cap Growth Fund			Small Cap Value Fund
ASSETS
Investments at cost	$	96,238,795		$	774,979,227
Net unrealized appreciation		29,486,081			137,111,713
Investments at value		125,724,876			912,090,940
Receivable for Fund shares sold		1,496,955			516,825
Receivable for securities sold		2,240,853			4,395,772
Dividends receivable		1,495			1,334,300
TOTAL ASSETS		129,464,179			918,337,837
LIABILITIES
Payable for securities purchased		1,276,583			4,482,251
Payable for Fund shares redeemed		142,927			827,832
Management fees payable (Note 5)		54,250			529,605
Deferred Trustees’ fees (Note 5)		53,431			117,132
Administrative fees payable (Note 5)		4,726			34,269
Other accounts payable and accrued expenses		86,909			116,363
TOTAL LIABILITIES		1,618,826			6,107,452
NET ASSETS	$	127,845,353		$	912,230,385
NET ASSETS CONSIST OF:
Paid-in capital	$	185,095,084		$	922,036,619
Accumulated net investment (loss)/undistributed net investment income		(53,431	)		2,319,360
Accumulated net realized loss on investments		(86,682,381	)		(149,237,307	)
Net unrealized appreciation on investments		29,486,081			137,111,713
NET ASSETS	$	127,845,353		$	912,230,385
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Institutional Class:
Net assets	$	52,501,246		$	454,852,942
Shares of beneficial interest		3,742,633			19,834,078
Net asset value, offering and redemption price per share	$	14.03		$	22.93
Retail Class:
Net assets	$	75,344,107		$	383,934,320
Shares of beneficial interest		5,558,722			16,905,825
Net asset value, offering and redemption price per share	$	13.55		$	22.71
Admin Class:
Net assets	$	—		$	73,443,123
Shares of beneficial interest		—			3,294,130
Net asset value, offering and redemption price per share	$	—		$	22.30

See accompanying notes to financial statements.

29  |

Statements of Operations

For the Year Ended September 30, 2010

	Small Cap Growth Fund			Small Cap Value Fund
INVESTMENT INCOME
Dividends	$	184,163	(a)	$	13,271,322
Expenses
Management fees (Note 5)		928,032			7,073,643
Service and distribution fees (Note 5)		191,734			1,318,692
Administrative fees (Note 5)		59,448			453,231
Trustees’ fees and expenses (Note 5)		19,143			35,220
Transfer agent fees and expenses (Notes 5 and 6)		201,445			1,148,358
Audit and tax services fees		36,658			41,924
Custodian fees and expenses		23,817			42,019
Legal fees		2,580			19,565
Registration fees		45,122			69,178
Shareholder reporting expenses		50,406			209,231
Miscellaneous expenses		10,371			37,587
Total expenses		1,568,756			10,448,648
Less waiver and/or expense reimbursement (Note 5)		(139,511	)		(640,652	)
Net expenses		1,429,245			9,807,996
Net investment income (loss)		(1,245,082	)		3,463,326
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net Realized Gain on:
Investments		14,954,786			58,619,537
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		10,136,058			34,774,717
Net realized and unrealized gain on investments		25,090,844			93,394,254
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	23,845,762		$	96,857,580

(a) Includes a non-recurring dividend of $89,040.

See accompanying notes to financial statements.

|  30

Statements of Changes in Net Assets

	Small Cap Growth Fund						Small Cap Value Fund
	Year Ended September 30, 2010			Year Ended September 30, 2009			Year Ended September 30, 2010			Year Ended September 30, 2009
FROM OPERATIONS:
Net investment income (loss)	$	(1,245,082	)	$	(794,013	)	$	3,463,326		$	3,004,380
Net realized gain (loss) on investments		14,954,786			(34,962,361	)		58,619,537			(157,922,333	)
Net change in unrealized appreciation (depreciation) on investments		10,136,058			21,890,105			34,774,717			76,497,968
Net increase (decrease) in net assets resulting from operations		23,845,762			(13,866,269	)		96,857,580			(78,419,985	)
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional Class		—			—			(1,798,397	)		(2,585,541	)
Retail Class		—			—			(522,660	)		(1,071,277	)
Admin Class		—			—			—			(9,660	)
Net Realized Capital Gains
Institutional Class		—			—			—			(167,987	)
Retail Class		—			—			—			(141,335	)
Admin Class		—			—			—			(24,687	)
Total distributions		—			—			(2,321,057	)		(4,000,487	)
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10)		(17,035,340	)		10,464,100			(150,208,179	)		(45,368,424	)
Redemption fees
Institutional Class		—			—			—			21,500
Retail Class		—			—			—			17,487
Admin Class		—			—			—			3,123
Total redemption fees		—			—			—			42,110
Net increase (decrease) in net assets		6,810,422			(3,402,169	)		(55,671,656	)		(127,746,786	)
NET ASSETS
Beginning of the year		121,034,931			124,437,100			967,902,041			1,095,648,827
End of the year	$	127,845,353		$	121,034,931		$	912,230,385		$	967,902,041
ACCUMULATED NET INVESTMENT (LOSS)/UNDISTRIBUTED NET INVESTMENT INCOME	$	(53,431	)	$	(46,961	)	$	2,319,360		$	1,177,091

See accompanying notes to financial statements.

31  |

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|  32

Financial Highlights

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment income (loss)(a)(b)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income(b)			Distributions from net realized capital gains			Total distributions
Small Cap Growth Fund
Institutional Class
9/30/2010	$	11.58	$	(0.11	)(k)	$	2.56		$	2.45		$	—		$	—		$	—
9/30/2009		13.07		(0.07	)		(1.42	)		(1.49	)		—			—			—
9/30/2008		15.87		(0.07	)		(2.73	)		(2.80	)		—			—			—
9/30/2007		12.00		(0.06	)(g)		3.93			3.87			—			—			—
9/30/2006		11.08		(0.08	)		0.99			0.91			—			—			—
Retail Class
9/30/2010		11.21		(0.13	)(k)		2.47			2.34			—			—			—
9/30/2009		12.69		(0.09	)		(1.39	)		(1.48	)		—			—			—
9/30/2008		15.45		(0.10	)		(2.66	)		(2.76	)		—			—			—
9/30/2007		11.71		(0.09	)(g)		3.83			3.74			—			—			—
9/30/2006		10.84		(0.11	)		0.97			0.86			—			—			—
Small Cap Value Fund
Institutional Class
9/30/2010	$	20.66	$	0.11		$	2.23		$	2.34		$	(0.07	)	$	—		$	(0.07	)
9/30/2009		22.01		0.09			(1.32	)		(1.23	)		(0.11	)		(0.01	)		(0.12	)
9/30/2008		28.77		0.11	(h)		(4.03	)		(3.92	)		(0.06	)		(2.78	)		(2.84	)
9/30/2007		27.69		0.12	(g)(i)		4.29			4.41			(0.17	)		(3.16	)		(3.33	)
9/30/2006		27.43		0.13			2.70			2.83			(0.15	)		(2.42	)		(2.57	)
Retail Class
9/30/2010		20.47		0.06			2.21			2.27			(0.03	)		—			(0.03	)
9/30/2009		21.79		0.04			(1.30	)		(1.26	)		(0.05	)		(0.01	)		(0.06	)
9/30/2008		28.52		0.05	(h)		(4.00	)		(3.95	)		—			(2.78	)		(2.78	)
9/30/2007		27.46		0.04	(g)(i)		4.28			4.32			(0.10	)		(3.16	)		(3.26	)
9/30/2006		27.23		0.06			2.67			2.73			(0.08	)		(2.42	)		(2.50	)
Admin Class
9/30/2010		20.11		0.00			2.19			2.19			—			—			—
9/30/2009		21.40		0.00			(1.28	)		(1.28	)		(0.00	)		(0.01	)		(0.01	)
9/30/2008		28.13		(0.01	)(h)		(3.94	)		(3.95	)		—			(2.78	)		(2.78	)
9/30/2007		27.14		(0.03	)(g)(i)		4.22			4.19			(0.04	)		(3.16	)		(3.20	)
9/30/2006		26.94		(0.01	)		2.65			2.64			(0.02	)		(2.42	)		(2.44	)

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

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

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

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

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

See accompanying notes to financial statements.

33  |

									Ratios to Average Net Assets:
Redemption fees(b)(c)		Net asset value, end of the period		Total return (%)(d)			Net assets, end of the period (000’s)		Net expenses (%)(e)(f)			Gross expenses (%)(e)			Net investment income (loss) (%)(e)			Portfolio turnover rate (%)
$	—	$	14.03		21.16		$	52,501		1.00			1.06			(0.85	)(k)		69
	—		11.58		(11.40	)		45,557		1.00			1.01			(0.68	)		107
	0.00		13.07		(17.64	)		44,540		1.00			1.01			(0.47	)		92
	0.00		15.87		32.25			28,088		1.00			1.23			(0.47	)		83
	0.01		12.00		8.30			20,414		1.00			1.38			(0.69	)		100
	—		13.55		20.87			75,344		1.25			1.39			(1.10	)(k)		69
	—		11.21		(11.66	)		75,478		1.25			1.43			(0.93	)		107
	0.00		12.69		(17.86	)		79,897		1.25			1.42			(0.70	)		92
	0.00		15.45		31.94			20,924		1.25			1.50			(0.66	)		83
	0.01		11.71		8.03			2,981		1.25			1.92			(0.94	)		100
$	—	$	22.93		11.39		$	454,853		0.90			0.94			0.50			52
	0.00		20.66		(5.42	)		506,324		0.90			0.94			0.52			55
	0.00		22.01		(15.02	)		553,268		0.89			0.89			0.47			61
	0.00		28.77		17.02			534,776		0.89			0.89			0.43			57
	0.00		27.69		11.17			442,714		0.89	(j)		0.89	(j)		0.47			62
	—		22.71		11.10			383,934		1.15			1.24			0.26			52
	0.00		20.47		(5.66	)		387,383		1.15			1.31			0.26			55
	0.00		21.79		(15.21	)		464,525		1.15			1.27			0.21			61
	0.00		28.52		16.74			465,055		1.15			1.24			0.15			57
	0.00		27.46		10.87			291,690		1.15			1.20			0.21			62
	—		22.30		10.89			73,443		1.40			1.56			0.02			52
	0.00		20.11		(5.93	)		74,195		1.40			1.77			0.02			55
	0.00		21.40		(15.44	)		77,855		1.40			1.68			(0.04	)		61
	0.00		28.13		16.41			76,783		1.40			1.56			(0.10	)		57
	0.00		27.14		10.59			64,367		1.40			1.46			(0.04	)		62

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

(g) 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.

(h) Includes a non-recurring dividend of $0.02 per share.

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

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

(k) Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.12) and $(0.14) for Institutional Class and Retail Class, respectively, and the ratio of net investment loss to average net assets would have been (0.92)% and (1.17)% for Institutional Class and Retail Class, respectively.

See accompanying notes to financial statements.

|  34

Notes to Financial Statements

September 30, 2010

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

Loomis Sayles Funds I:

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

Loomis Sayles Funds II:

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

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

Most expenses of the Trusts can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the Funds in the Trusts. Expenses of a Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (including the Rule 12b-1 service and distribution fees and transfer agent fees). In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of a Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

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

a.  Valuation. Equity securities, including shares of closed-end investment companies and exchange-traded funds, for which market quotations are readily available are valued at market value, as reported by 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

35  |

Notes to Financial Statements – continued

September 30, 2010

recent bid quotation on the applicable NASDAQ Market. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Short-term obligations purchased with an original or remaining maturity of sixty days or less are valued at amortized cost, which approximates market value. 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.

b.  Investment Transactions and Related Investment Income. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculation. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. 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

|  36

Notes to Financial Statements – continued

September 30, 2010

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 investment securities. Such changes are included with the net realized and unrealized gain or loss on investments.

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

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

d.  Federal and Foreign Income Taxes. Each Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of September 30, 2010 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

37  |

Notes to Financial Statements – continued

September 30, 2010

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.

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

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2010 and 2009 were as follows:

	2010 Distributions Paid From:						2009 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Small Cap Growth Fund	$	—	$	—	$	—	$	—	$	—	$	—
Small Cap Value Fund		2,321,057		—		2,321,057		3,669,309		331,178		4,000,487

Differences between these amounts for the year ended September 30, 2009 and those reported in the Statements of Changes in Net Assets for the same period are primarily attributable to different book and tax treatment for short-term capital gains.

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Notes to Financial Statements – continued

September 30, 2010

As of September 30, 2010, the components of distributable earnings on a tax basis were as follows:

	Small Cap Growth Fund			Small Cap Value Fund
Undistributed ordinary income	$	—		$	2,436,492
Undistributed long-term capital gains		—			—
Total undistributed earnings		—			2,436,492
Capital loss carryforward:
Expires September 30, 2011		(59,283,040	)		—
Expires September 30, 2017		(14,995,800	)		(88,137,321	)
Expires September 30, 2018		(11,885,718	)		(58,500,125	)
Total capital loss carryforward		(86,164,558	)		(146,637,446	)
Deferred net capital losses (post-October 2009)		—			—
Unrealized appreciation (depreciation)		28,968,258			134,511,852
Total accumulated earnings (losses)	$	(57,196,300	)	$	(9,689,102	)

The Small Cap Growth Fund had $138,314,515 of capital loss carryforwards expire in the current year.

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

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

39  |

Notes to Financial Statements – continued

September 30, 2010

For the year ended September 30, 2010, none of the Funds had loaned Securities under this agreement.

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

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

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

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

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

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

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2010, at value:

Small Cap Growth Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	124,091,711	$	—	$	—	$	124,091,711
Short-Term Investments		—		1,633,165		—		1,633,165
Total	$	124,091,711	$	1,633,165	$	—	$	125,724,876

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

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Notes to Financial Statements – continued

September 30, 2010

Small Cap Value Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Common Stocks	$	903,108,749	$	—	$	—	$	903,108,749
Short-Term Investments		—		8,982,191		—		8,982,191
Total	$	903,108,749	$	8,982,191	$	—	$	912,090,940

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

4.  Purchases and Sales of Securities. For the year ended September 30, 2010, purchases and sales of securities (excluding short-term investments) were as follows:

Fund	Purchases		Sales
Small Cap Growth Fund	$	81,207,639	$	100,003,395
Small Cap Value Fund		476,617,288		589,137,329

5.  Management Fees and Other Transactions with Affiliates.

a.  Management Fees. Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to each Fund. Under the terms of the management agreements, each Fund pays a management fee at the following annual rates, calculated daily and payable monthly, based on each Fund’s average daily net assets:

Fund	Percentage of Average Daily Net Assets
Small Cap Growth Fund		0.75%
Small Cap Value Fund		0.75%

Loomis Sayles has given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes and extraordinary expenses. These undertakings are in effect until January 31, 2011 and will be reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings.

For the year ended September 30, 2010, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:

	Expense Limit as a Percentage of Average Daily Net Assets
Fund	Institutional Class		Retail Class		Admin Class
Small Cap Growth Fund		1.00%		1.25%		—
Small Cap Value Fund		0.90%		1.15%		1.40%

Loomis Sayles shall be permitted to recover expenses it has borne under the expense limitation agreements (whether through waiver of its management fees or otherwise) on a

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Notes to Financial Statements – continued

September 30, 2010

class by class basis in later periods to the extent the expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such waived/reimbursed fees or expenses more than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed.

For the year ended September 30, 2010, the management fees for each Fund were as follows:

Fund	Management Fees		Percentage of Average Daily Net Assets
Small Cap Growth Fund	$	928,032		0.75%
Small Cap Value Fund		7,073,643		0.75%

For the year ended September 30, 2010, class-specific expenses have been reimbursed as follows:

	Reimbursement1
Fund	Institutional Class		Retail Class		Admin Class		Total
Small Cap Growth Fund	$	29,470	$	110,041	$	—	$	139,511
Small Cap Value Fund		189,503		334,287		116,862		640,652

¹ Expense reimbursements are subject to possible recovery until September 30, 2011.

No expenses were recovered during the year ended September 30, 2010 under the terms of the expense limitation agreement.

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

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

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

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

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Notes to Financial Statements – continued

September 30, 2010

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

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

For the year ended September 30, 2010, the Funds paid the following service and distribution fees:

	Service Fees		Distribution Fees
Fund	Admin Class		Retail Class		Admin Class
Small Cap Growth Fund	$	—	$	191,734	$	—
Small Cap Value Fund		179,730		959,232		179,730

c.  Administrative Fees. Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion and 0.0350% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

Prior to July 1, 2010, each Fund paid Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and 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

43  |

Notes to Financial Statements – continued

September 30, 2010

Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds were subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the year ended September 30, 2010, each Fund paid the following administrative fees to Natixis Advisors:

Fund	Administrative Fees
Small Cap Growth Fund	$	59,448
Small Cap Value Fund		453,231

d.  Sub-Transfer Agent Fees. Natixis Distributors has entered into agreements with financial intermediaries to provide certain recordkeeping, processing, shareholder communications and other services to customers of the intermediaries and has agreed to compensate the intermediaries for providing those services. Certain services would be provided by the Funds if the shares of those customers were registered directly with the Funds’ transfer agent. Accordingly, the Funds agreed to pay a portion of the intermediary fees attributable to shares of the Fund held by the intermediaries (which generally is a percentage of the value of shares held) not 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 intermediaries. Natixis Distributors pays the remainder of the fees.

For the year ended September 30, 2010, the Funds paid the following sub-transfer agent fees, which are reflected in transfer agent fees and expenses in the Statements of Operations:

	Sub-Transfer Agent Fees
Fund	Institutional Class		Retail Class		Admin Class
Small Cap Growth Fund	$	40,705	$	40,633	$	—
Small Cap Value Fund		405,782		506,484		150,273

e.  Trustees Fees and Expenses. The Trusts do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distributors, Natixis US or their affiliates. Effective January 1, 2010, the Chairperson of the Board receives a retainer fee at the annual rate of $250,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $80,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chairman receives an additional retainer fee at an annual rate of $15,000. Each Contract Review and Governance

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Notes to Financial Statements – continued

September 30, 2010

Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. Each member of the ad hoc Committee on Alternative Investments received a one-time fee of $10,000. The ad hoc Committee on Alternative Investments is not a standing committee. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2010, the Chairperson of the Board received a retainer fee at the annual rate of $200,000. The Chairperson did not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attended. Each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $65,000. Each Independent Trustee also received a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attended in person and $3,750 for each meeting of the Board of Trustees that he or she attended telephonically. In addition, each committee chairman received an additional retainer fee at the annual rate of $10,000. Each Contract Review and Governance Committee member was compensated $5,000 for each Committee meeting that he or she attended in person and $2,500 for each meeting that he or she attended telephonically. Each Audit Committee member was compensated $6,250 for each Committee meeting that he or she attended in person and $3,125 for each meeting that he or she attended telephonically.

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

6.Class Specific Expenses. For the year ended September 30, 2010, the Funds paid the following class-specific transfer agent fees and expenses (including sub-transfer agent fees):

	Transfer Agent Fees and Expenses
Fund	Institutional Class		Retail Class		Admin Class
Small Cap Growth Fund	$	52,124	$	149,321	$	—
Small Cap Value Fund		453,425		539,452		155,481

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Notes to Financial Statements – continued

September 30, 2010

7.Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participates in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

Prior to March 10, 2010, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participated in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participated in the line of credit. Interest was charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 0.75%. In addition, a commitment fee of 0.125% per annum, payable at the end of each calendar quarter, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the year ended September 30, 2010, none of the Funds had borrowings under these agreements.

8.Brokerage Commission Recapture. Each Fund has entered into agreements with certain brokers whereby the brokers will rebate a portion of brokerage commissions. All amounts rebated by the brokers are returned to the Funds under such agreements and are included in realized gains on investments in the Statements of Operations. For the year ended September 30, 2010, amounts rebated under these agreements were as follows:

Fund	Rebates
Small Cap Growth Fund	$	16,607
Small Cap Value Fund		109,979

9.  Concentration of Ownership. At September 30, 2010, Loomis Sayles Funded Pension Plan and Trust and Loomis Sayles Employees’ Profit Sharing Retirement Plan held shares of beneficial interest in the Funds as follows:

Fund	Pension Plan		Profit Sharing Retirement Plan
Small Cap Growth Fund		359,940		386,164
Small Cap Value Fund		355,203		705,832

From time to time, the Funds may have a concentration of several shareholders having a significant percentage of shares outstanding. Investment activities of these shareholders could have material impacts on the Funds. As of September 30, 2010, one shareholder account owned more than 5% of Small Cap Growth Fund’s total outstanding shares,

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Notes to Financial Statements – continued

September 30, 2010

representing 7.52% of the Fund’s net assets. Such ownership may be beneficially held by multiple individuals or entities other than the owner of record.

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

	Small Cap Growth Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		942,038		$	12,157,438			1,974,319		$	19,253,187
Issued in connection with the reinvestment of distributions		—			—			—			—
Redeemed		(1,134,399	)		(14,055,822	)		(1,447,130	)		(13,740,063	)
Net change		(192,361	)	$	(1,898,384	)		527,189		$	5,513,124
Retail Class
Issued from the sale of shares		1,649,726		$	20,206,682			3,127,117		$	30,016,606
Issued in connection with the reinvestment of distributions		—			—			—			—
Redeemed		(2,822,162	)		(35,343,638	)		(2,692,237	)		(25,065,630	)
Net change		(1,172,436	)	$	(15,136,956	)		434,880		$	4,950,976
Increase (decrease) from capital share transactions		(1,364,797	)	$	(17,035,340	)		962,069		$	10,464,100

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Notes to Financial Statements – continued

September 30, 2010

10.  Capital Shares  – continued.

	Small Cap Value Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		2,602,888		$	56,206,503			5,487,523		$	94,433,600
Issued in connection with the reinvestment of distributions		80,409			1,643,559			156,833			2,488,947
Redeemed		(7,355,313	)		(156,910,081	)		(6,270,554	)		(105,527,302	)
Net change		(4,672,016	)	$	(99,060,019	)		(626,198	)	$	(8,604,755	)
Retail Class
Issued from the sale of shares		1,882,548		$	40,646,183			4,033,997		$	70,124,577
Issued in connection with the reinvestment of distributions		25,691			521,021			76,628			1,206,896
Redeemed		(3,929,781	)		(84,156,249	)		(6,502,104	)		(108,566,266	)
Net change		(2,021,542	)	$	(42,989,045	)		(2,391,479	)	$	(37,234,793	)
Admin Class
Issued from the sale of shares		995,292		$	21,022,763			1,211,062		$	19,455,331
Issued in connection with the reinvestment of distributions		—			—			1,691			26,231
Redeemed		(1,389,922	)		(29,181,878	)		(1,162,021	)		(19,010,438	)
Net change		(394,630	)	$	(8,159,115	)		50,732		$	471,124
Increase (decrease) from capital share transactions		(7,088,188	)	$	(150,208,179	)		(2,966,945	)	$	(45,368,424	)

|  48

Report of Independent Registered Public Accounting Firm

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

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Loomis Sayles Small Cap Value Fund, a series of Loomis Sayles Funds I, and the Loomis Sayles Small Cap Growth Fund, a series of Loomis Sayles Funds II (collectively, the “Funds”), at September 30, 2010, 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, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 22, 2010

49  |

Special Meeting of Shareholders (Unaudited)

A special meeting of shareholders of the Trusts was held on May 27, 2010 to consider a proposal to elect four Trustees to the Board of Trustees. The proposal was approved by shareholders of the Trusts. The results of the shareholder vote were as follows:

Loomis Sayles Funds I

Nominee	Voted “FOR”*		Withheld*
Kenneth A. Drucker		1,441,815,530		17,903,098
Wendell J. Knox		1,441,546,136		18,172,492
Erik R. Sirri		1,441,468,045		18,250,582
Peter J. Smail		1,439,322,473		20,396,155

* Trust-wide voting results.

Loomis Sayles Funds II

Nominee	Voted “FOR”*		Withheld*
Kenneth A. Drucker		1,717,408,736		24,631,425
Wendell J. Knox		1,717,302,502		24,737,659
Erik R. Sirri		1,717,226,576		24,813,585
Peter J. Smail		1,717,449,661		24,590,500

* Trust-wide voting results.

In addition to the Trustees named above, the following also serve as Trustees of the Trusts: Graham T. Allison, Jr., Edward A. Benjamin, Daniel M. Cain, Sandra O. Moose, Cynthia L. Walker, Robert J. Blanding and John T. Hailer.

|  50

2010 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2010, 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
Small Cap Value		100%

Qualified Dividend Income. For the fiscal year ended September 30, 2010, the Small Cap Value Fund will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 15% depending on an individual’s tax bracket. If the Small Cap Value Fund pays a distribution during calendar year 2010, complete information will be reported in conjunction with Form 1099-DIV.

51  |

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 800-633-3330.

Name and Year of Birth	Position(s) Held with the Trust(s), 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 During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
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	42 Director, Taubman Centers, Inc. (real estate investment trust)	Significant experience on Board of Trustees of the Trusts and/or other business organizations; government experience (including as Assistant Secretary of Defense under President Clinton); academic experience
Edward A. Benjamin (1938)	Trustee Since 2002 Chairman of the Contract Review and Governance Committee	Retired	42 Formerly, Director, Precision Optics Corporation (optics manufacturer)	Significant experience on Board of Trustees of the Trusts and/or other business organizations; significant experience providing legal counsel to boards, funds, advisers and other financial institutions (former partner at Ropes & Gray LLP)

|  52

Trustee and Officer Information – continued

Name and Year of Birth	Position(s) Held with the Trust(s), 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 During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES – continued
Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Audit Committee	Chairman (formerly, President and Chief Executive Officer) of Cain Brothers & Company, Incorporated (investment banking)	42 Director, Sheridan Healthcare Inc. (physician practice management)	Significant experience on Board of Trustees of the Trusts and/or other business organizations; experience in the financial industry, including roles as chairman and former chief executive officer of an investment banking firm
Kenneth A. Drucker (1945)	Trustee Since 2008 Audit Committee Member	Formerly, Vice President and Treasurer, Sequa Corp. (aerospace, automotive and metal manufacturing)	42 Formerly, Director, M Fund, Inc. (investment company); Director, Gateway Trust (investment company)	Significant experience on Board of Trustees of the Trusts and/or other business organizations; executive experience including as treasurer of a corporation
Wendell J. Knox (1948)	Trustee Since 2009 Contract Review and Governance Committee Member	Director (formerly, President and Chief Executive Officer) of Abt Associates Inc. (research and consulting)	42 Director, Eastern Bank (commercial bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on Board of Trustees of the Trusts and/or other business organizations; executive experience including roles as president and chief executive officer of a consulting company
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)	42 Director, Verizon Communications; Director, AES Corporation (international power company); Formerly, Director, Rohm and Haas Company (specialty chemicals)	Significant experience on Board of Trustees of the Trusts and/or other business organizations; executive experience at a management consulting company

53  |

Trustee and Officer Information – continued

Name and Year of Birth	Position(s) Held with the Trust(s), 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 During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INDEPENDENT TRUSTEES – continued
Erik R. Sirri1 (1958)	Trustee Since 2009 Contract Review and Governance Committee Member	Professor of Finance at Babson College; formerly, Director of the Division of Trading and Markets at the Securities and Exchange Commission	42 None	Experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience and training as an economist
Peter J. Smail1 (1952)	Trustee Since 2009 Contract Review and Governance Committee Member	Retired; formerly, President and Chief Executive Officer of Pyramis Global Advisors (investment management)	42 None	Mutual fund industry and executive experience, including roles as president and chief executive officer for an investment adviser
Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School; and formerly, Dean for Finance and Chief Financial Officer, Harvard Medical School	42 None	Significant experience on Board of Trustees of the Trusts and/or other business organizations; executive experience in a variety of academic organizations, including roles as dean for finance and administration

|  54

Trustee and Officer Information – continued

Name and Year of Birth	Position(s) Held with the Trust(s), 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 During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
INTERESTED TRUSTEES
Robert J. Blanding2 (1947) 555 California Street San Francisco, CA 94104	Trustee Since 2002 President and Chief Executive Officer of Loomis Sayles Funds I since 2002 Chief Executive Officer of Loomis Sayles Funds II since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	42 None	Significant experience on Board of Trustees of the Trusts; continuing service as president, chairman, and Chief Executive Officer of Loomis, Sayles & Company, L.P.
John T. Hailer3 (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.	42 None	Significant experience on Board of Trustees of the Trusts; continuing experience as Chief Executive Officer of Natixis Global Asset Management, L.P.

* Each trustee serves until retirement, resignation or removal from the Board of Trustees. The current retirement age is 72; however, the trustees have designated 2010 as a transition period so that any trustees who are currently age 72 or older or who reach age 72 during the remainder of 2010 will not be required to retire until the end of calendar year 2011. 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 November 20, 2009.

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

¹ Mr. Sirri and Mr. Smail were appointed as trustees effective December 1, 2009.

² Mr. Blanding is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President, Chairman, Director and Chief Executive Officer of Loomis Sayles.

³ Mr. Hailer is deemed an “interested person” of the Trusts because he holds the following positions with an affiliated person of the Trusts: President and Chief Executive Officer – U.S. and Asia, Natixis Global Asset Management, L.P.

55  |

Trustee and Officer Information – continued

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 of Loomis Sayles Funds I and Loomis Sayles Funds II	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.

|  56

Trustee and Officer Information – continued

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 – continued
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.

* 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.

** Each person listed above, except as noted, holds the same position(s) with the Fund Complex. Mr. Fuss is not an officer of the Natixis Funds Trusts or the Hansberger International Series. Previous positions during the past five years with 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.

57  |

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 Bond Fund

Loomis Sayles Investment Grade Fixed Income Fund

TABLE OF CONTENTS
Fund and Manager Review	1
Portfolio of Investments	21
Statements of Assets and Liabilities	81
Statements of Operations	83
Statements of Changes in Net Assets	85
Financial Highlights	87
Notes to Financial Statements	95

ANNUAL REPORT

SEPTEMBER 30, 2010

LOOMIS SAYLES BOND FUND

Fund and manager review

FUND FACTS

Managers:

Daniel Fuss, CFA, CIC

Matthew Eagan, CFA

Kathleen Gaffney, CFA

Elaine Stokes

Symbols:

Institutional Class	LSBDX
Retail Class	LSBRX
Admin Class	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-quality 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:

May 16, 1991

Class Inception Date:

Institutional Class:

May 16, 1991

Retail Class:

December 31, 1996

Admin Class:

January 2, 1998

Net Assets:

$19,701.8 million

Market Conditions

Throughout much of the 12-month period, attention shifted from economic recovery to economic growth, and investors began to displace lingering economic pessimism with overdue optimism. However, the transition was far from smooth, as new concerns materialized and old ones resurfaced. In particular, increased anxiety about sovereign debt solvency in Europe, precarious macroeconomic data in the United States and China’s lending restrictions percolated through global credit markets. In waves, these factors alternately fostered and stymied the “risk-on” trade. Liquidity returned to the credit markets during the period, largely in the form of new issuance by firms refinancing debt. This trend supported high-yield and investment-grade performance.

Performance Results

For the 12 months ended September 30, 2010, Institutional Class shares of Loomis Sayles Bond Fund returned 16.00%. The fund outperformed its benchmark, the Barclays Capital U.S. Government/Credit Bond Index, which returned 8.73% for the period.

Explanation of Fund Performance

The fund’s outperformance relative to its benchmark was primarily due to exposure to non-U.S.-dollar-denominated issues, high-yield credit and equity-sensitive convertible securities. Tentative signs of stability in Europe allayed investor fears and helped spark a currency rally against the U.S. dollar. This translated into sizable contributions from the fund’s investments denominated in the Mexican peso and the Australian, New Zealand and Canadian dollars. The Indonesian rupiah and South Korean won also contributed modestly to performance. High-yield industrials were among the fund’s top performers, with positions in the technology, consumer cyclical and communication segments offering the strongest returns. An allocation to high-yield financials also contributed positively to results. Strong equity market performance during the 12-month period helped buoy the fund’s convertible bonds and preferred securities.

Performance detractors included high-yield utilities, which struggled due to forecasts of depressed growth and languishing energy prices, particularly for producers dependant on natural gas prices. In addition, fears of sovereign-debt risk in Europe and the Middle East sent investors scrambling away from government-related debt. While gains in several emerging markets offset some of this, sovereigns as a whole detracted during the year. Also, brokerage names suffered, as uncertainty regarding potential financial sector reforms in U.S. and European markets gave investors pause.

Outlook

We see a prolonged period of slow economic growth and low interest rates in the United States, Europe and Japan as the most influential and likely scenario for the remainder of 2010. Increased investor demand for yield should continue to benefit sectors of the market that offer substantial premiums over government bonds. The anticipation and investment positioning surrounding a second round of U.S. quantitative easing should continue to have wide-ranging ramifications for the markets.

Overall, our portfolio themes remain largely intact. Our assessment of the credit markets is consistent with previous quarters in 2010; selected relative value opportunities are still available in the current environment. Having the research expertise to identify the right securities is of utmost importance. We believe the fund remains positioned to take advantage of the slowly improving global economy. We continue to see what we believe to be incremental fundamental improvement in the corporate space. Our global approach allows us to look beyond the domestic markets for security-specific opportunities as well. As relative value diminishes in certain names, we will continue to reduce position sizes selectively.

We expect market volatility to be a constant presence going forward. We plan to take advantage of this volatility by opportunistically adding securities across many of the markets available to us. We believe that a combination of improving corporate fundamentals, emerging market growth expectations that exceed those of the developed world and strong technical demand for yield have created an environment that could continue to benefit the fund in the future.

1  |

LOOMIS SAYLES BOND FUND

Average Annual Returns

September 30, 2010

	1 year			5 years			10 years
Institutional Class (Inception 5/16/91)		16.00	%		7.74	%		9.70	%
Retail Class (Inception 12/31/96)		15.72			7.43			9.40
Admin Class (Inception 1/2/98)		15.37			7.15			9.11
Comparative Performance
Barclays Capital U.S. Government/Credit Bond Index(c)		8.73			6.15			6.52
Lipper BBB-Rated Funds Index(c)		13.40			5.95			6.38
Gross expense ratio (before fee waivers and/or expense reimbursements)*
Institutional: 0.65%        Retail:  0.96%        Admin: 1.25%
Net expense ratio (after fee waivers and/or expense reimbursements)*
Institutional: 0.65%        Retail:  0.95%        Admin: 1.20%

* As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/11.

Cumulative Performance^(a)

September 30, 2000 to September 30, 2010^(b)

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

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

^(a) Cumulative performance is shown for the Institutional Class. Performance of the Retail and Admin Classes would be lower, due to higher fees.

^(b) The mountain chart is based on the initial minimum investment of $100,000 for the Institutional Class.

^(c) See page 15 for a description of the indices.

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 U.S. government agencies are not insured by and may not be guaranteed by the U.S. government. The fund can invest a significant percentage of assets in foreign securities and the value of fund shares can be adversely affected by changes in currency exchange rates and by 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 U.S. dollar and foreign currencies may cause the value of the fund’s investments to decline. Accordingly, the purchase of fund shares should be viewed as a long-term investment.

|  2

LOOMIS SAYLES FIXED INCOME FUND

Fund and manager review

FUND FACTS

Managers:

Daniel Fuss, CFA, CIC

Matthew Eagan, CFA

Kathleen Gaffney, CFA

Elaine Stokes

Symbol:

Institutional Class 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-quality 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:

January 17, 1995

Fund Registration Date:

March 7, 1997

Net Assets:

$806.1 million

Market Conditions

During the 12-month period, attention shifted from economic recovery to economic growth, and investors began to displace lingering economic pessimism with overdue optimism. However, the transition was far from smooth, as new concerns materialized and old ones resurfaced. In particular, increased anxiety about sovereign debt solvency in Europe, precarious macroeconomic data in the United States and China’s lending restrictions percolated through global credit markets in waves, alternately fostering and stymieing the “risk-on” trade. Liquidity returned to the credit markets during the period, largely in the form of new issuance by firms refinancing debt. This trend supported high-yield and investment-grade performance.

Performance Results

For the 12 months ended September 30, 2010, Institutional Class shares of Loomis Sayles Fixed Income Fund returned 15.38%. The fund outperformed its benchmark, the Barclays Capital U.S. Government/Credit Bond Index, which returned 8.73% for the period.

Explanation of Fund Performance

The fund’s outperformance was primarily due to exposure to non-U.S.-dollar-denominated issues, high-yield credit and equity-sensitive convertible securities. Tentative signs of stability in Europe allayed investor fears and helped spark a currency rally against the U.S. dollar. This translated into sizable contributions from the fund’s investments denominated in the Mexican peso and the Australian, New Zealand and Canadian dollars. The Indonesian rupiah and South Korean won also contributed modestly to performance. High-yield industrials were among the fund’s top performers, with positions in the technology, consumer cyclical and communication segments offering the strongest returns. An allocation to high-yield financials also contributed positively to performance. Strong equity market performance during the 12-month period helped buoy the fund’s convertible bonds and preferred securities.

Performance detractors included high-yield utilities, which struggled due to forecasts of depressed growth and languishing energy prices, particularly for producers dependant on natural gas prices. In addition, fears of sovereign-debt risk in Europe and the Middle East sent investors scrambling away from government-related debt. While gains in several emerging markets offset some of this, sovereigns as a whole detracted from performance during the year. Also, brokerage names suffered, as uncertainty regarding potential financial sector reforms in U.S. and European markets gave investors pause.

Outlook

We see a prolonged period of slow economic growth and low interest rates in the United States, Europe and Japan as the most influential and likely scenario for the remainder of 2010. Increased investor demand for yield should continue to benefit sectors of the market that offer substantial premiums over government bonds. The anticipation and investment positioning surrounding a second round of U.S. quantitative easing should continue to have wide-ranging ramifications for the markets.

Overall, our portfolio themes remain largely intact. Our assessment of the credit markets is consistent with previous quarters in 2010; selected relative value opportunities are still available in the current environment. Having the research expertise to identify the right securities for a portfolio is of utmost importance. We believe the fund remains positioned to take advantage of the slowly improving global economy. We continue to see what we believe to be incremental fundamental improvement in the corporate space. Our global approach allows us to look beyond the domestic markets for security-specific opportunities as well. As relative value diminishes in certain names, we will continue to reduce position sizes selectively.

We expect market volatility to be a constant presence going forward. We plan to take advantage of this volatility by opportunistically adding securities across many of the markets available to us. We believe that a combination of improving corporate fundamentals, emerging market growth expectations that exceed those of the developed world and strong technical demand for yield have created an environment that could continue to benefit the fund in the future.

3  |

LOOMIS SAYLES FIXED INCOME FUND

Average Annual Returns

September 30, 2010

	1 year			5 years			10 years
Institutional Class (Inception 1/17/95)		15.38	%		8.49	%		10.24	%
Comparative Performance
Barclays Capital U.S. Government/Credit Bond Index(b)		8.73			6.15			6.52
Lipper BBB-Rated Funds Index(b)		13.40			5.95			6.38
Gross expense ratio (before fee waivers and/or expense reimbursements)*
Institutional: 0.58%
Net expense ratio (after fee waivers and/or expense reimbursements)*
Institutional: 0.58%

* As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/11.

Cumulative Performance

September 30, 2000 to September 30, 2010^(a)

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

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

^(a) The mountain chart is based on the fund’s minimum initial investment of $3,000,000.

^(b) See page 15 for a description of the indices.

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 U.S. government agencies are not insured by and may not be guaranteed by the U.S. government. The fund can invest a significant percentage of assets in foreign securities and the value of fund shares can be adversely affected by changes in currency exchange rates and by 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 U.S. dollar and foreign currencies may cause the value of the fund’s investments to decline. Accordingly, the purchase of fund shares should be viewed as a long-term investment.

|  4

LOOMIS SAYLES GLOBAL BOND FUND

Fund and manager review

FUND FACTS

Managers:

Ken Buntrock, CFA, CIC

David Rolley, CFA

Lynda Schweitzer, CFA

Symbols:

Institutional Class	LSGBX
Retail Class	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-quality fixed-income securities.

Fund Inception Date:

May 10, 1991

Class Inception Date:

Institutional Class:

May 10, 1991

Retail Class:

December 31, 1996

Net Assets:

$2,311.9 million

Market Conditions

Global fixed-income markets generally remained volatile, as fears of a “double-dip” recession emerged in response to weak economic data in core countries. Following the “stress tests” of European Union banks, financial conditions in Europe improved, but sovereign debt risks remained. Most global government bond yields fell, and yield spreads tightened. In particular, high-yield and investment-grade spread levels narrowed relative to government issues. Strong growth in the emerging markets of Indonesia, South Korea, Singapore and Thailand exceeded growth in developed nations.

Performance Results

For the 12 months ended September 30, 2010, Institutional Class shares of Loomis Sayles Global Bond Fund returned 9.46%. The fund outperformed its benchmark, the Barclays Capital Global Aggregate Bond Index, which returned 6.06% for the period.

Explanation of Fund Performance

The fund’s outperformance was primarily due to strong security selection combined with an overweight in the corporate sector and an underweight in U.S. Treasury securities. In addition, the fund’s exposure to high-yield and emerging market securities boosted performance, as investor demand for yield helped generate strong performance for these sectors. Long-duration positions in U.S.-dollar-denominated corporate bonds were also additive. (Duration is a measure of interest-rate sensitivity.) Additionally, we maintained a longer-than-benchmark duration in U.S. corporate bonds, which enhanced returns as bond yields fell.

From a currency perspective, investors favored countries offering global growth prospects, and the fund’s overweight positions in the Swedish krona, Indonesian rupiah, Mexican peso and Singapore dollar contributed positively to performance.

The Japanese yen rose sharply against the U.S. dollar during the period, and the fund’s underweight position in the yen detracted from relative performance. While the fund’s exposure to Scandinavian currencies enhanced performance overall, its small exposure to the Norwegian krone detracted from performance. In addition, the fund’s position in short-duration U.S. Treasuries dampened returns, considering long-term U.S. Treasury yields declined during the period.

Outlook

Looking ahead, riskier asset classes and non-dollar currency momentum likely will be dominated by the timing and magnitude of future Federal Reserve balance sheet expansion. Outside the United States, the European Central Bank is passively reducing its balance sheet, which is sending the euro higher. Japan intervened, but we do not believe this action will hold down the yen. We are keeping the fund’s non-dollar exposures largely unchanged. We have been slightly reducing corporate credit holdings, and we may continue to reduce exposure here. Durations among the major market benchmarks are lengthening, but we do not plan to extend the fund’s duration, preferring to maintain a more conservative strategy for now.

5  |

LOOMIS SAYLES GLOBAL BOND FUND

Average Annual Returns

September 30, 2010

	1 year			5 years			10 years
Institutional Class (Inception 5/10/91)		9.46	%		7.24	%		9.22	%
Retail Class (Inception 12/31/96)		9.05			6.89			8.91
Comparative Performance
Barclays Capital Global Aggregate Bond Index(c)		6.06			6.69			7.28
Lipper Global Income Funds Index(c)		9.87			6.03			6.84
Gross expense ratio (before fee waivers and/or expense reimbursements)*
Institutional: 0.68%        Retail 1.02%
Gross expense ratio (after fee waivers and/or expense reimbursements)*
Institutional: 0.68%        Retail: 1.00%

* As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/11.

Cumulative Performance^(a)

September 30, 2000 to September 30, 2010^(b)

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

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

^(a) Cumulative performance is shown for the Institutional Class. Performance of the Retail Class would be lower due to higher fees.

^(b) The mountain chart is based on the Institutional Class minimum initial investment of $100,000.

^(c) See page 15 for a description of the indices.

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 U.S. government agencies are not insured by and may not be guaranteed by the U.S. government. The fund can invest a significant percentage of assets in foreign securities and the value of fund shares can be adversely affected by changes in currency exchange rates and by 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 U.S. dollar and foreign currencies may cause the value of the fund’s investments to decline. Accordingly, the purchase of fund shares should be viewed as a long-term investment.

.

|  6

LOOMIS SAYLES INFLATION PROTECTED SECURITIES FUND

Fund and manager review

FUND FACTS

Managers:

John Hyll

Cliff Rowe, CFA

Symbols:

Institutional Class	LSGSX
Retail Class	LIPRX

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 U.S. Treasury.

Fund Inception Date:

May 20, 1991

Class Inception Date:

Institutional Class:

May 20, 1991

Retail Class:

May 28, 2010

Net Assets:

$13.3 million

Market Conditions

Throughout the period, rates moved lower across the yield curve, ending the period anchored near zero at the short end. Fears about a “double-dip” recession that surfaced in April were somewhat alleviated by early July, helping to buoy investor sentiment into the final months of the period. Despite pockets of volatility along the way, strong demand for riskier asset classes drove corporate yields down as the recovery paced along. The new-issue market remained active, with a primary focus on refinancing, which has helped retrench and strengthen corporate credit profiles.

Performance Results

For the 12 months ended September 30, 2010, Institutional Class shares of Loomis Sayles Inflation Protected Securities Fund returned 9.58%. The fund outperformed its benchmark, the Barclays Capital U.S. Treasury Inflation Protected Securities Index, which returned 8.89% for the period.

Explanation of Fund Performance

Out-of-benchmark exposure to corporate credit was a primary driver of the fund’s outperformance during the period. Both high-yield and investment-grade industrial names within the communications, basic industry and consumer products segments offered robust returns and aided results. Within the Treasury Inflation Protected Securities (TIPS) sector, the fund’s holdings in long-duration securities had the greatest influence on results. (Duration is a measure of interest-rate sensitivity.) Overall, longer-duration positions fared well and added to performance. Small, out-of-benchmark positions in the Mexican peso and Canadian dollar also contributed favorably to performance.

Agency preferred securities, which struggled on concerns about sub-par U.S. housing-market data and the government’s continued involvement in the market, detracted from performance. The fund’s allocation to these securities was small, and the overall effect on performance was relatively benign.

Outlook

We believe the TIPS market continues to offer relative value. We believe the sentiment that has depressed U.S. Treasury yields has also lowered real yields on TIPS. Buy-and-hold investors may find a better return at maturity relative to nominal U.S. Treasuries, due to the likelihood that, over time, breakevens are likely to widen toward richer levels as inflation concerns develop. We also believe yield spreads on corporate bonds have room to tighten further, and we will opportunistically look to add value by focusing on issue selection and tapping the new issue market, rather than altering the fund’s broad segment exposure.

7  |

LOOMIS SAYLES INFLATION PROTECTED SECURITIES FUND

Average Annual Returns

September 30, 2010

	1 year			5 years			10 years
Institutional Class (Inception 5/20/91)(e)		9.58	%		5.15	%		6.03	%
Retail Class (Inception 5/28/10)(a)(e)		9.23			4.84			5.67
Comparative Performance
Barclays Capital U.S. Treasury Inflation Protected Securities Index(c)		8.89			5.49			7.49
Lipper Treasury Inflation Protected Securities Funds Index(c)		9.50			4.92			N/A
Gross expense ratio (before fee waivers and/or expense reimbursements)*
Institutional: 1.11%        Retail: 1.39%
Net expense ratio (after fee waivers and/or expense reimbursements)*
Institutional: 0.40%        Retail: 0.65%

* As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/11 for the Institutional Class and 1/31/12 for the Retail Class.

Cumulative Performance^(d)(e)

September 30, 2000 to September 30, 2010^(b)

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

For illustrative purposes, the chart above reflects the growth of a hypothetical investment of $100,000 in the fund, for the last ten years. The chart above also reflects the growth of a hypothetical investment in the former primary benchmark of the fund, the Barclays Capital U.S. Government Bond Index (the “Former Benchmark”), compared to the performance of the fund from September 30, 2000 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 Barclays Capital U.S. TIPS 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, 2010. 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, 2010. 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.

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

^(a) Prior to inception of Retail Class (5/28/10), performance is that of Institutional Class, restated to reflect the higher net expenses of Retail Class.

^(b) The mountain chart is based on the fund’s initial minimum investment of $100,000 for the Institutional Class.

^(c) See page 15 for a description of the indices. Return data is not available for the Lipper Treasury Inflation Protected Securities Index prior to July 1, 2003.

^(d) Cumulative performance is shown for the Institutional Class. Performance of the Retail Class would be lower due to higher fees.

^(e) The fund revised its investment strategies on 12/15/04; performance may have been different had the current investment strategy been in place for all periods shown.

What you should know:

Securities issued by U.S. government agencies are not insured by and may not be guaranteed by the U.S. government. The fund can invest a significant percentage of assets in foreign securities and the value of fund shares can be adversely affected by changes in currency exchange rates and by 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 U.S. dollar and foreign currencies may cause the value of the 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 U.S. Treasury (TIPS). The principal value of these types of securities are periodically adjusted according to the rate of inflation and repayment of the original bonds is guaranteed by the U.S. government.

|  8

LOOMIS SAYLES INSTITUTIONAL HIGH INCOME FUND

Fund and manager review

FUND FACTS

Managers:

Daniel Fuss, CFA, CIC

Matthew Eagan, CFA

Kathleen Gaffney, CFA

Elaine Stokes

Symbol:

Institutional Class LSHIX

Objective:

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

Strategy:

Invests in primarily lower-quality 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:

June 5, 1996

Fund Registration Date:

March 7, 1997

Net Assets:

$383.7 million

Market Conditions

A slow, uneven global economic recovery, incremental fundamental credit improvement and strong technical demand for yield and riskier asset classes characterized the 12-month period that ended September 30, 2010. Periods of volatility sprang up due to uncertainty regarding the European sovereign debt crisis and lower domestic and global economic growth projections. Record new issuance was a constant theme, as the bid for risk and positive fund flows helped corporate borrowers access the primary markets to refinance existing debt, improve credit profiles and extend the ever-present wall of maturities in high yield. Credit fundamentals continued to improve, albeit slowly, as corporate borrowers maintained sizable cash reserves and continued to cut costs.

Performance Results

For the 12 months ended September 30, 2010, Institutional Class shares of Loomis Sayles Institutional High Income Fund returned 17.06%. The fund underperformed its benchmark, the Barclays Capital U.S. Corporate High-Yield Bond Index, which returned 18.44% for the period.

Explanation of Fund Performance

While the fund’s high-yield financials generated strong absolute performance, an underweight in the sector hampered performance relative to the benchmark. Financials posted strong gains following generally positive domestic and European “stress test” results. Nevertheless, uncertainty regarding the implementation of new financial regulations remains. Out-of-benchmark equity positions significantly underperformed the benchmark, although returns were positive and on pace with equity markets for the period. A small allocation to preferred credits posted the only negative sector returns, on average, in the fund. A small allocation to C-rated securities was the only segment that posted negative absolute returns, as investors seemed to abandon lower-rated high-yield credits. Securities denominated in Iceland’s krona experienced losses as the currency plunged.

Positions in high-yield and investment-grade industrials represented the fund’s strongest-performing corporate sectors, as investors sought growth from corporate securities they believed would fare well as the economy recovered. Strong corporate earnings also fed both sectors. The fund’s high-yield utilities also posted strong returns, as investors found value in a sector that experienced sell-offs for multiple quarters. In addition, selected out-of-benchmark positions in foreign-currency-denominated securities contributed significantly to positive performance as investors reached for yield. The fund benefited from holdings in developing countries, in general, and from commodity-based economies that experienced relatively strong recoveries. The Indonesian rupiah, euro, Brazilian real and Mexican peso posted the greatest currency-based contributions. Overall, securities rated BBB through B experienced the strongest returns relative to the benchmark.

Outlook

We see a prolonged period of slow economic growth and low interest rates in the United States, Europe and Japan as the most likely scenario for the remainder of 2010. Increased investor demand for yield should continue to benefit sectors that offer substantial premiums over government bonds. The anticipation and investment positioning surrounding a second round of U.S. quantitative easing should continue to have wide-ranging ramifications for the markets.

Overall, our portfolio themes remain largely intact. Our assessment of the credit markets is consistent with previous quarters; selected relative value opportunities are still available in the current environment. Having the research expertise to identify the right securities is of utmost importance. We believe that the fund remains positioned to take advantage of the slowly improving global economy. We continue to see what we believe to be incremental fundamental improvement in the corporate space. Our global approach allows us to look beyond the domestic markets for security-specific opportunities as well. As relative value diminishes in certain names, we will continue to reduce position sizes selectively.

We expect market volatility to be a constant presence going forward. We plan to take advantage of this volatility by opportunistically adding securities across many of the markets available to us. We believe that a combination of improving corporate fundamentals, emerging market growth expectations that exceed those of the developed world and strong technical demand for yield have created an environment that could continue to benefit the fund in the future.

9  |

LOOMIS SAYLES INSTITUTIONAL HIGH INCOME FUND

Average Annual Returns

September 30, 2010

	1 year			5 years			10 years
Institutional Class (Inception 6/5/96)		17.06	%		9.08	%		9.66	%
Comparative Performance
Barclays Capital U.S. Corporate High-Yield Bond Index(b)		18.44			8.37			7.96
Lipper High Current Yield Funds Index(b)		17.16			6.00			5.48
Gross expense ratio (before fee waivers and/or expense reimbursements)*
Institutional: 0.74%
Net expense ratio (after fee waivers and/or expense reimbursements)*
Institutional: 0.74%

* As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/11.

Cumulative Performance

September 30, 2000 to September 30, 2010^(a)

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

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

^(a) The mountain chart is based on the fund’s minimum initial investment of $3,000,000.

^(b) See page 15 for a description of the indices.

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 U.S. government agencies are not insured by and may not be guaranteed by the U.S. government. The fund can invest a significant percentage of assets in foreign securities and the value of fund shares can be adversely affected by changes in currency exchange rates and by 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 U.S. dollar and foreign currencies may cause the value of the fund’s investments to decline. Accordingly, the purchase of fund shares should be viewed as a long-term investment.

|  10

LOOMIS SAYLES INTERMEDIATE DURATION BOND FUND

Fund and manager review

FUND FACTS

Managers:

Neil Burke

Cliff Rowe, CFA

Richard Raczkowski

Symbols:

Institutional Class	LSDIX
Retail Class	LSDRX

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. The fund may invest any portion of its assets in U.S.-dollar-denominated Canadian securities and up to 20% of its assets in other U.S.-dollar-denominated foreign securities, including emerging market securities.

Fund Inception Date:

January 28, 1998

Class Inception Date:

Institutional Class:

January 28, 1998

Retail Class:

May 28, 2010

Net Assets:

$37.0 million

Market Conditions

Throughout the period, rates moved lower across the yield curve, anchoring close to zero at the short end. Fears about a “double-dip” recession that surfaced in April were somewhat alleviated by early July, helping to buoy investor sentiment over the final months of the period. Despite pockets of volatility, strong demand for riskier asset classes pushed corporate spreads tighter. An active new-issue market helped satisfy this demand, as corporations focused on refinancing their debt, helping retrench and strengthen corporate credit profiles.

Performance Results

For the 12 months ended September 30, 2010, Institutional Class shares of Loomis Sayles Intermediate Duration Bond Fund returned 10.67%. The fund outperformed its benchmark, the Barclays Capital U.S. Intermediate Government/Credit Bond Index, which returned 7.77% for the period.

Explanation of Fund Performance

Security selection was a key source of performance throughout the year, as the fund’s sector weights remained largely unchanged. The fund’s out-of-benchmark allocation to commercial mortgage-backed securities (CMBS) provided the largest contribution to return. While questions remain on the overall health of the sector, the fund’s super senior CMBS holdings rallied, aided by strong demand for fixed-income securities with attractive yields. In addition, the fund’s overweight in investment-grade credit boosted performance, as improving corporate fundamentals benefited the sector. In particular, the fund’s holdings in the industrials sector, including communication, technology and energy names, along with certain finance companies and bank holdings, drove returns. Exposure to some longer-duration U.S. Treasuries propped up returns in the sector due to the continued downward trend in rates. Duration is a measure of interest-rate sensitivity.

Despite positive absolute returns, the fund’s mortgage-backed securities (MBS) allocation had a muted effect on relative performance over the period as securities with strong performance saw gains offset by shorter-duration positioning as interest rates fell.

Outlook

We believe the fund is positioned to take advantage of a gradual economic recovery, even though U.S. interest rates likely will remain low for the foreseeable future. We expect credit trends among corporate securities to continue to improve. We believe uncertainty about future regulation and the pace of the recovery has caused corporate managements to be more prudent and conservative with their approach. We believe corporate bond yield spreads have room to tighten further, and we will opportunistically seek to add value by focusing on security selection rather than altering our broad segment exposure. We also continue to find value in super-senior tranches of CMBS, despite the considerable rally already experienced. In our view, CMBS may be one of the cheapest sectors on a relative spread basis.

11  |

LOOMIS SAYLES INTERMEDIATE DURATION BOND FUND*

Average Annual Returns

September 30, 2010

	1 year			5 years			10 years
Institutional Class (Inception 1/28/98)		10.67	%		6.99	%		6.42	%
Retail Class (Inception 5/28/10)(a)		10.58			6.72			6.09
Comparative Performance
Barclays Capital U.S. Intermediate Government/Credit Bond Index(c)		7.77			5.95			6.05
Lipper Intermediate Investment Grade Debt Funds Index(c)		11.33			5.75			6.08
Gross expense ratio (before fee waivers and/or expense reimbursements)**
Institutional: 0.68%        Retail: 1.01%
Net expense ratio (after fee waivers and/or expense reimbursements)**
Institutional: 0.40%        Retail: 0.65%

* Formerly Loomis Sayles Intermediate Duration Fixed Income Fund

** As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/11 for the Institutional Class and 1/31/12 for the Retail Class.

Cumulative Performance^(d)

September 30, 2000 to September 30, 2010^(b)

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

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

^(a) Prior to inception of Retail Class (5/28/10), performance is that of Institutional Class, restated to reflect the higher net expenses of Retail Class.

^(b) The mountain chart is based on the fund’s initial minimum investment of $100,000 for the Institutional Class.

^(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.

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 U.S. Securities issued by U.S. government agencies are not insured by and may not be guaranteed by the U.S. government. The fund can invest a significant percentage of assets in foreign securities and the value of fund shares can be adversely affected by changes in currency exchange rates and by 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 U.S. dollar and foreign currencies may cause the value of the fund’s investments to decline. The fund can hold up to 10% of its net 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.

|  12

LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND

Fund and manager review

FUND FACTS

Managers:

Daniel Fuss, CFA, CIC

Matthew Eagan, CFA

Kathleen Gaffney, CFA

Elaine Stokes

Symbols:

Institutional Class 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-quality 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:

July 1, 1994

Fund Registration Date:

March 7, 1997

Net Assets:

$473.2 million

Market Conditions

The fixed-income market rally that began in early 2009 continued into the second quarter of 2010, when volatility returned and left security prices range bound. During the rally, investors turned to riskier asset classes in search of yield, which led to robust returns for high-yield bonds, commercial mortgage-backed securities (CMBS) and equity-sensitive convertible and preferred securities. Overall, yields on corporate bonds came down, and liquidity remained strong during the period. New-issue volume remained robust throughout the period, allowing companies to refinance debt at record-low interest rates. Corporations continued to find ways to cut costs and build cash reserves. Balance sheets continued to improve, as many companies avoided shareholder-friendly activities, such as share buybacks and mergers and acquisitions.

Performance Results

For the 12 months ended September 30, 2010, Institutional Class shares of Loomis Sayles Investment Grade Fixed Income Fund returned 14.59%. The fund outperformed its benchmark, the Barclays Capital U.S. Government/Credit Bond Index, which returned 8.73% for the period.

Explanation of Fund Performance

Investment-grade credit was the leading contributor to fund performance during the period, led primarily by prudent security selection in the transportation, communication and technology industries. A substantial allocation to non-U.S.-dollar holdings in the commodity-rich nations of Canada, Australia, Brazil and New Zealand provided strong returns. As the risk trade flourished throughout the period, global allocations found favor with investors searching for higher yields. Similarly, out-of-benchmark allocations to high-yield, convertible and preferred securities bolstered the fund’s relative performance. Corporate bond yields came down during the period, as investors gained confidence in strengthening corporate balance sheets and lowering default rates. Additionally, our positioning among CMBS, one of the top-performing areas during the period, enhanced performance. At the same time, a meaningful underweight allocation to U.S. Treasuries and agencies helped results, as investors sought higher yields from riskier asset classes.

The fund had a shortened duration stance within the asset-backed securities (ABS) sector and gave up some return with this positioning, as a flattening yield curve hampered the sector’s relative performance. In addition, a small allocation to mortgage-backed securities (MBS) had a muted effect on performance.

Outlook

We see a prolonged period of slow economic growth and low interest rates in the United States, Europe and Japan as the most influential and likely scenario for the remainder of 2010. Increased investor demand for yield should continue to benefit sectors of the market that offer substantial premiums over government bonds. The anticipation and investment positioning surrounding a second round of U.S. quantitative easing should continue to have wide-ranging ramifications for the markets.

Overall, our portfolio themes remain largely intact. Our assessment of the credit markets is consistent with previous quarters in 2010; selected relative value opportunities are still available in the current environment. Having the research expertise to identify the right securities is of utmost importance. We believe the fund remains positioned to take advantage of a slowly improving global economy. We continue to see what we believe to be incremental fundamental improvement in the corporate space. Our global approach allows us to look beyond the domestic markets for security-specific opportunities as well. As relative value diminishes in certain names, we will continue to reduce position sizes selectively.

We expect market volatility to be a constant presence going forward. We plan to take advantage of this volatility by opportunistically adding securities across many of the markets available to us. We believe that a combination of improving corporate fundamentals, emerging market growth expectations that exceed those of the developed world and strong technical demand for yield have created an environment that could continue to benefit the fund in the future.

13  |

LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND

Average Annual Returns

September 30, 2010

	1 year			5 years			10 years
Institutional Class (Inception 7/1/1994)		14.59	%		8.64	%		10.30	%
Comparative Performance
Barclays Capital U.S. Government/Credit Bond Index(b)		8.73			6.15			6.52
Lipper BBB-Rated Funds Index(b)		13.40			5.95			6.38
Gross expense ratio (before fee waivers and/or expense reimbursements)*
Institutional: 0.49%
Net expense ratio (after fee waivers and/or expense reimbursements)*
Institutional: 0.49%

* As stated in the most recent prospectus. Waivers/reimbursements are contractual and are set to expire on 1/31/11.

Cumulative Performance

September 30, 2000 to September 30, 2010^(a)

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

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

^(a) The mountain chart is based on the fund’s minimum initial investment of $3,000,000.

^(b) See page 15 for a description of the indices.

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 U.S. government agencies are not insured by and may not be guaranteed by the U.S. government. The fund can invest a significant percentage of assets in foreign securities and the value of fund shares can be adversely affected by changes in currency exchange rates and by 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 U.S. dollar and foreign currencies may cause the value of the fund’s investments to decline.

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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 BBB-Rated Funds Index is an unmanaged index that tracks the average performance of the 30 largest BBB-rated funds according to Lipper Inc.

Lipper Global Income Funds Index is an unmanaged index that tracks the average performance of the 30 largest global income funds according to Lipper Inc.

Lipper High Current Yield Funds Index is an unmanaged index that tracks the average performance of the 30 largest high current yield funds according to Lipper Inc.

Lipper Intermediate Investment Grade Debt Funds Index is an unmanaged index that tracks the average performance of the 30 largest intermediate investment grade debt funds according to Lipper Inc.

Lipper Treasury Inflation Protected Securities Funds Index is an unmanaged index that tracks the average performance of the 30 largest treasury inflation protected securities funds according to Lipper Inc.

Source: Lipper, Inc.

Barclays Capital U.S. Government/Credit Bond Index is an unmanaged index that includes U.S. Treasuries, government-related issues, and investment grade U.S. corporate securities.

Barclays Capital U.S. Intermediate Government/Credit Bond Index is an unmanaged index that includes U.S. Treasuries, government-related issues, and investment grade U.S. corporate securities with remaining maturities of one to ten years.

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

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

Barclays Capital U.S. TIPS Index is an unmanaged index that tracks inflation protected securities issued by the U.S. Treasury.

Proxy Voting Information

A description of the funds’ proxy voting policies and procedures is available without charge, upon request, (i) by calling Loomis Sayles at 800-633-3330; (ii) on the funds’ website, www.loomissayles.com, and (iii) on the SEC’s website, www.sec.gov. Information about how the funds voted proxies relating to portfolio securities during the 12 months ended June 30, 2010 is available on (i) the funds’ website and (ii) the SEC’s website.

Quarterly Portfolio Schedules

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

UNDERSTANDING YOUR FUND’S EXPENSES

As a mutual fund shareholder you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, distribution and/or service fees (12b-1 fees), and other fund expenses. These costs are described in more detail in 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, 2010 through September 30, 2010. 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.

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Loomis Sayles Bond Fund

Institutional Class	Beginning Account Value 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period* 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,059.60		$3.30
Hypothetical (5% return before expenses)		$1,000.00		$1,021.86		$3.24
Retail Class
Actual		$1,000.00		$1,058.30		$4.80
Hypothetical (5% return before expenses)		$1,000.00		$1,020.41		$4.71
Admin Class
Actual		$1,000.00		$1,056.30		$6.19
Hypothetical (5% return before expenses)		$1,000.00		$1,019.05		$6.07
*Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.64%, 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 365 (to reflect the half-year period).

Loomis Sayles Fixed Income Fund

Institutional Class	Beginning Account Value 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period* 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,061.70		$3.00
Hypothetical (5% return before expenses)		$1,000.00		$1,022.16		$2.94
*Expenses are equal to the Fund’s annualized expense ratio: 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 365 (to reflect the half-year period).

Loomis Sayles Global Bond Fund

Institutional Class	Beginning Account Value 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period* 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,076.50		$3.49
Hypothetical (5% return before expenses)		$1,000.00		$1,021.71		$3.40
Retail Class
Actual		$1,000.00		$1,074.70		$5.20
Hypothetical (5% return before expenses)		$1,000.00		$1,020.05		$5.06
*Expenses are equal to the Fund’s annualized expense ratio: 0.67% and 1.00%, for Institutional and Retail Class, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

Loomis Sayles Inflation Protected Securities Fund

Institutional Class	Beginning Account Value 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,067.90		$2.071
Hypothetical (5% return before expenses)		$1,000.00		$1,023.06		$2.03*
Retail Class
Actual		$1,000.00		$1,044.70		$2.222
Hypothetical (5% return before expenses)		$1,000.00		$1,021.81		$3.29*
*Hypothetical expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.40% and 0.65%, 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 (183), divided by 365 (to reflect the half-year period).
1Actual expenses for Institutional Class are equal to the Fund’s annualized expense ratio (after waiver/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 (183), divided by 365 (to reflect the half-year period).
2Retail Class commenced operations on May 28, 2010. Actual expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.65%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal period (122), divided by 365 (to reflect the partial period).

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Loomis Sayles Institutional High Income Fund

Institutional Class	Beginning Account Value 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period* 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,041.20		$3.63
Hypothetical (5% return before expenses)		$1,000.00		$1,021.51		$3.60
*Expenses are equal to the Fund’s annualized expense ratio: 0.71%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, divided by 365 (to reflect the half-year period).

Loomis Sayles Intermediate Duration Bond Fund**

Institutional Class	Beginning Account Value 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,059.90		$2.071
Hypothetical (5% return before expenses)		$1,000.00		$1,023.06		$2.03*
Retail Class
Actual		$1,000.00		$1,048.90		$2.232
Hypothetical (5% return before expenses)		$1,000.00		$1,021.81		$3.29*
*Hypothetical expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.40% and 0.65%, 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 (183), divided by 365 (to reflect the half-year period).
1Actual expenses for Institutional Class are equal to the Fund’s annualized expense ratio (after waiver/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 (183), divided by 365 (to reflect the half-year period).
2Retail Class commenced operations on May 28, 2010. Actual expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.65%, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal period (122), divided by 365 (to reflect the partial period).
**Formerly Loomis Sayles Intermediate Duration Fixed Income Fund.

Loomis Sayles Investment Grade Fixed Income Fund

Institutional Class	Beginning Account Value 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period* 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,077.50		$2.55
Hypothetical (5% return before expenses)		$1,000.00		$1,022.61		$2.48
*Expenses are equal to the Fund’s annualized expense ratio: 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 365 (to reflect the half-year period).

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

In addition to the materials requested by the Trustees in connection with their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board 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 each Fund’s performance and fee differentials against each Fund’s peer group of funds, performance ratings provided by a third-party, total return information for various periods, and third-party performance rankings for various periods comparing a Fund against its peer group. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review and Governance Committee and/or the full Board 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 Trustees also receive periodic updates between meetings.

The Board of Trustees most recently approved the continuation of the Agreements at their meeting held in June 2010. The Agreements were continued for a one-year period for the 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. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

The nature, extent and quality of the services provided to the Funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by the Adviser and its affiliates to the Funds and the resources dedicated to the Funds by the Adviser and its affiliates, including recent or planned investments by the Adviser in additional personnel or other resources.

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.

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.

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With respect to each Fund, the Board concluded that the Fund’s performance or other relevant factors supported the renewal of the Agreement relating to that Fund. In the case of the Loomis Sayles Inflation Protected Securities Fund, the Board noted that while the Fund 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 Agreement. These factors included (1) that the underperformance was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Adviser that were reasonable and consistent with the Fund’s investment objective and policies, and (2) that the Fund’s more recent performance was competitive when compared to relevant performance benchmarks or peer groups.

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 (such as institutional separate accounts), as well as information about differences in such fees. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage and the greater regulatory costs associated with the management of mutual fund assets. In evaluating each Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund, as well as the need for the Adviser to offer competitive compensation and to expend addition resources as the Fund grows in size. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps for various Funds in the Fund family. They noted that 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 while the Loomis Sayles Global Bond Fund’s and Loomis Sayles Institutional High Income Fund’s advisory fees were each above the median of a peer group of funds, each Fund’s total expense ratio was below the median for its peer group. The Trustees also considered the compensation directly or indirectly received by the Adviser and its affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Adviser and its affiliates’ relationships with the Funds, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser profitability was an issue, the performance of the relevant Funds, the expense levels of the Funds, whether the Adviser had implemented breakpoints and/or expense caps with respect to such Funds and the overall profit margin of the Adviser compared to other investment managers. The Trustees also noted management’s history of proposing additional advisory fee breakpoints as the Loomis Sayles Bond Fund grew to substantially larger scale.

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

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

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

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

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

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

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

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• 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 Advisers. The Trustees considered the possible conflicts of interest associated with these fallout and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest.

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

Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that each of the existing Agreements should be continued through June 30, 2011.

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Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – 92.2% of Net Assets
	Non-Convertible Bonds – 83.5%
		ABS Car Loan – 0.1%
$	16,340,000	Avis Budget Rental Car Funding AESOP LLC, Series 2007-2A, Class A, 0.397%, 8/20/2013, 144A(b)	$	15,680,078
		ABS Credit Card – 0.2%
	31,065,000	Citibank Credit Card Issuance Trust, Series 2008-C6, Class C6, 6.300%, 6/20/2014		33,049,395
		ABS Home Equity – 0.0%
	3,144,266	New Century Home Equity Loan Trust, Series 2005-2, Class M3, 0.746%, 6/25/2035(b)		1,791,235
		Aerospace & Defense – 0.1%
	1,510,000	Bombardier, Inc., 7.350%, 12/22/2026, (CAD)		1,471,491
	13,664,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		12,980,800
				14,452,291
		Airlines – 2.0%
	51,400,000	Air Canada, 10.125%, 8/01/2015, 144A, (CAD)		50,705,608
	405,876	American Airlines Pass Through Trust, Series 1993-A6, 8.040%, 9/16/2011		405,876
	3,377,905	American Airlines Pass Through Trust, Series 2009-1A, 10.375%, 1/02/2021		3,985,928
	202,428	Continental Airlines Pass Through Trust, Series 1996-1, Class A, 6.940%, 4/15/2015		210,019
	8,720,095	Continental Airlines Pass Through Trust, Series 1997-1, Class A, 7.461%, 10/01/2016		8,938,097
	2,754,751	Continental Airlines Pass Through Trust, Series 1997-4, Class B, 6.900%, 7/02/2018		2,727,203
	4,047,298	Continental Airlines Pass Through Trust, Series 1998-1, Class B, 6.748%, 9/15/2018		3,925,879
	10,992,850	Continental Airlines Pass Through Trust, Series 1999-1, Class B, 6.795%, 2/02/2020		10,580,618
	6,524,279	Continental Airlines Pass Through Trust, Series 1999-2, Class B, 7.566%, 9/15/2021		6,565,055
	2,527,025	Continental Airlines Pass Through Trust, Series 2000-1, Class A-1, 8.048%, 5/01/2022		2,729,187
	2,371,591	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022		2,543,531
	7,326,277	Continental Airlines Pass Through Trust, Series 2000-2, Class B, 8.307%, 10/02/2019		7,399,540

Principal Amount (‡)		Description	Value (†)
		Airlines – continued
$	3,044,514	Continental Airlines Pass Through Trust, Series 2001-1, Class A-1, 6.703%, 12/15/2022	$	3,189,250
	3,782,439	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		3,687,878
	17,387,521	Continental Airlines Pass Through Trust, Series 2007-1, Class A, 5.983%, 10/19/2023		17,952,616
	26,494,500	Continental Airlines Pass Through Trust, Series 2007-1, Class B, 6.903%, 4/19/2022		25,434,720
	24,408,795	Continental Airlines Pass Through Trust, Series 2009-1, 9.000%, 7/08/2016		27,826,026
	29,625,000	Continental Airlines Pass Through Trust, Series 2009-2, Class A, 7.250%, 5/10/2021		32,291,250
	2,825,000	Delta Air Lines, Inc., 9.500%, 9/15/2014, 144A		3,065,125
	2,000,000	Delta Air Lines, Inc., Series 2001-1, Class A-2, 7.111%, 3/18/2013		2,090,000
	2,996,715	Delta Air Lines, Inc., Series 2007-1, Class A, 6.821%, 2/10/2024		3,142,655
	4,885,290	Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024		4,909,717
	35,435,230	Delta Air Lines, Inc., Series 2007-1, Class C, 8.954%, 8/10/2014		36,055,346
	9,502,386	Delta Air Lines, Inc., Series 2009-1, Class B, 9.750%, 12/17/2016		10,167,553
	3,645,454	Northwest Airlines, Inc., Series 2002-1, Class G2, (MBIA insured), 6.264%, 5/20/2023		3,663,681
	28,952,143	Northwest Airlines, Inc., Series 2007-1, Class B, 8.028%, 11/01/2017		29,264,536
	2,000,000	Qantas Airways Ltd., 5.125%, 6/20/2013, 144A		2,114,552
	44,235,000	Qantas Airways Ltd., 6.050%, 4/15/2016, 144A		48,659,385
	27,490,267	UAL Pass Through Trust, Series 2007-1, Class A, 6.636%, 1/02/2024		27,421,541
	16,352,511	UAL Pass Through Trust, Series 2009-1, 10.400%, 5/01/2018		18,233,050
				399,885,422
		Automotive – 2.6%
	385,000	ArvinMeritor, Inc., 8.125%, 9/15/2015		389,813
	3,172,000	Cummins, Inc., 6.750%, 2/15/2027		3,455,672
	3,000,000	Cummins, Inc., 7.125%, 3/01/2028		3,382,185

See accompanying notes to financial statements.

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Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Automotive – continued
	4,570,000	FCE Bank PLC, EMTN, 4.625%, 10/25/2010, (NOK)	$	774,262
	9,800,000	FCE Bank PLC, EMTN, 7.125%, 1/16/2012, (EUR)		13,794,048
	6,550,000	FCE Bank PLC, EMTN, 7.125%, 1/15/2013, (EUR)		9,286,461
	8,550,000	FCE Bank PLC, EMTN, 7.875%, 2/15/2011, (GBP)		13,582,962
	2,590,000	Ford Motor Co., 6.375%, 2/01/2029		2,395,750
	2,611,000	Ford Motor Co., 6.500%, 8/01/2018		2,656,693
	1,560,000	Ford Motor Co., 6.625%, 2/15/2028		1,478,100
	64,950,000	Ford Motor Co., 6.625%, 10/01/2028		61,540,125
	2,720,000	Ford Motor Co., 7.125%, 11/15/2025		2,658,800
	122,204,000	Ford Motor Co., 7.450%, 7/16/2031		127,397,670
	1,580,000	Ford Motor Co., 7.500%, 8/01/2026		1,580,000
	67,840,000	Ford Motor Credit Co. LLC, 7.000%, 4/15/2015		72,492,467
	6,485,000	Ford Motor Credit Co. LLC, 8.000%, 6/01/2014		7,091,490
	145,015,000	Ford Motor Credit Co. LLC, 8.700%, 10/01/2014		162,688,558
	6,041,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		5,557,720
	14,150,000	Goodyear Tire & Rubber Co. (The), 10.500%, 5/15/2016		16,024,875
	3,700,000	TRW Automotive, Inc., 7.250%, 3/15/2017, 144A		3,931,250
	6,400,000	TRW Automotive, Inc., 8.875%, 12/01/2017, 144A		7,008,000
				519,166,901
		Banking – 6.3%
	100,540,000	AgriBank FCB, 9.125%, 7/15/2019, 144A(c)		124,703,180
	33,073,000	Associates Corp. of North America, 6.950%, 11/01/2018		36,511,005
	35,170,000	BAC Capital Trust VI, 5.625%, 3/08/2035		33,060,644
	2,682,000	Bank of America Corp., 5.420%, 3/15/2017		2,746,639
	7,290,000	Bank of America Corp., 6.000%, 9/01/2017		7,893,000
	12,823,000	Bank of America NA, 5.300%, 3/15/2017		13,197,573
	87,880,000,000	Barclays Bank PLC, EMTN, 3.680%, 8/20/2015, (KRW)		77,479,524
	3,260,000	Bear Stearns Cos., Inc. (The), 4.650%, 7/02/2018		3,431,988
	1,445,000	Bear Stearns Cos., Inc. (The), 5.300%, 10/30/2015		1,612,045

Principal Amount (‡)		Description	Value (†)
		Banking – continued
	274,980,870,000	BNP Paribas SA, EMTN, Zero Coupon, 6/13/2011, 144A, (IDR)	$	29,577,774
	66,710,000	Citigroup, Inc., 5.000%, 9/15/2014		69,287,674
	1,445,000	Citigroup, Inc., 5.850%, 12/11/2034		1,456,067
	33,485,000	Citigroup, Inc., 5.875%, 2/22/2033		32,057,903
	15,880,000	Citigroup, Inc., 6.000%, 10/31/2033		15,319,198
	43,650,000	Citigroup, Inc., 6.125%, 5/15/2018		47,622,674
	8,805,000	Citigroup, Inc., 6.125%, 8/25/2036		8,575,929
	72,120,000	Citigroup, Inc., 6.375%, 8/12/2014		80,087,529
	4,900,000	Citigroup, Inc., EMTN, (fixed rate to 11/30/2012, variable rate thereafter), 3.625%, 11/30/2017, (EUR)		6,400,792
	87,000,000	Citigroup, Inc., MTN, 5.500%, 10/15/2014		94,401,003
	14,370,000	First Niagara Finance Group, Inc., 6.750%, 3/19/2020		15,861,893
	900,000	Goldman Sachs Group, Inc. (The), 6.450%, 5/01/2036		902,654
	54,175,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		56,310,849
	4,065,000	Goldman Sachs Group, Inc. (The), GMTN, 5.375%, 3/15/2020		4,284,559
	4,680,000	HBOS PLC, 6.000%, 11/01/2033, 144A		3,566,675
	12,345,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		12,408,589
	250,225,920,000	JPMorgan Chase & Co., Zero Coupon, 3/28/2011, 144A, (IDR)		27,315,979
	599,419,948,660	JPMorgan Chase & Co., Zero Coupon, 4/12/2012, 144A, (IDR)		61,432,989
	748,342,518,000	JPMorgan Chase & Co., EMTN, Zero Coupon, 3/28/2011, 144A, (IDR)		81,693,010
	153,708,294,250	JPMorgan Chase London, EMTN, Zero Coupon, 10/21/2010, 144A, (IDR)		17,139,551
	80,020,000	Lloyds TSB Bank PLC, MTN, 6.500%, 9/14/2020, 144A		80,790,993
	4,825,000	Merrill Lynch & Co., Inc., 5.700%, 5/02/2017		4,990,194
	6,110,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		5,973,869
	100,400,000	Merrill Lynch & Co., Inc., 10.710%, 3/08/2017, (BRL)		56,964,539

See accompanying notes to financial statements.

|  22

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Banking – continued
	4,887,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)	$	6,503,311
	8,660,000	Merrill Lynch & Co., Inc., MTN, 6.875%, 4/25/2018		9,713,887
	3,600,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		3,697,495
	1,970,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.400%, 8/28/2017		2,155,781
	38,951,000	Morgan Stanley, 4.750%, 4/01/2014		40,679,178
	15,100,000	Morgan Stanley, 5.500%, 7/24/2020		15,556,292
	9,600,000	Morgan Stanley, Series F, GMTN, 5.625%, 9/23/2019		9,995,050
	11,700,000	Morgan Stanley, Series F, GMTN, 6.625%, 4/01/2018		12,971,264
	4,400,000	Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		4,662,451
	7,795,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		8,373,202
	7,500,000	Morgan Stanley, Series H, GMTN, 5.125%, 11/30/2015, (GBP)		12,162,838
				1,241,529,233
		Brokerage – 0.0%
	1,295,000	Jefferies Group, Inc., 6.250%, 1/15/2036		1,189,027
	4,860,000	Jefferies Group, Inc., 8.500%, 7/15/2019		5,642,990
				6,832,017
		Building Materials – 0.8%
	4,805,000	Masco Corp., 4.800%, 6/15/2015		4,725,261
	3,285,000	Masco Corp., 5.850%, 3/15/2017		3,213,949
	19,873,000	Masco Corp., 6.125%, 10/03/2016		20,203,289
	2,900,000	Masco Corp., 6.500%, 8/15/2032		2,488,861
	26,195,000	Owens Corning, Inc., 6.500%, 12/01/2016		28,339,690
	51,180,000	Owens Corning, Inc., 7.000%, 12/01/2036		51,541,638
	35,870,000	USG Corp., 6.300%, 11/15/2016		31,117,225
	17,605,000	USG Corp., 9.500%, 1/15/2018		17,274,906
				158,904,819
		Chemicals – 0.8%
	51,205,000	Chevron Phillips Chemical Co. LLC, 8.250%, 6/15/2019, 144A		64,805,816
	19,619,000	Hercules, Inc., 6.500%, 6/30/2029		16,038,532
	31,054,000	Hexion Specialty Chemicals, Inc., 7.875%, 2/15/2023		23,601,040

Principal Amount (‡)		Description	Value (†)
		Chemicals – continued
$	2,886,000	Hexion Specialty Chemicals, Inc., 8.375%, 4/15/2016	$	2,453,100
	11,305,000	Hexion Specialty Chemicals, Inc., 9.200%, 3/15/2021		9,383,150
	2,550,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 8.875%, 2/01/2018		2,499,000
	34,640,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 9.750%, 11/15/2014		36,025,600
	10,565,000	Methanex Corp., Senior Note, 6.000%, 8/15/2015		10,451,712
	1,025,000	Mosaic Global Holdings, Inc., 7.375%, 8/01/2018		1,228,109
				166,486,059
		Collateralized Mortgage Obligations – 0.2%
	10,336,102	WaMu Mortgage Pass Through Certificates, Series 2007-OA6, Class 2A, 3.003%, 7/25/2047(b)		6,296,939
	32,332,548	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR4, Class 2A2, 2.954%, 4/25/2035(b)		30,870,082
				37,167,021
		Commercial Mortgage-Backed Securities – 0.0%
	2,293,539	Banc of America Alternative Loan Trust, Series 2007-1, Class 2A1, 5.791%, 4/25/2037(b)		1,628,587
	5,123,333	GSR Mortgage Loan Trust, Series 2005-AR2, Class 2A1, 3.097%, 4/25/2035(b)		4,504,880
				6,133,467
		Construction Machinery – 0.7%
	70,082,000	Case New Holland, Inc., 7.750%, 9/01/2013		76,126,573
	1,975,000	Joy Global, Inc., 6.625%, 11/15/2036		1,959,066
	2,345,000	RSC Equipment Rental, Inc./RSC Holdings III LLC, 9.500%, 12/01/2014		2,430,006
	27,030,000	Toro Co., 6.625%, 5/01/2037(c)		26,811,246
	27,184,000	United Rentals North America, Inc., 7.000%, 2/15/2014		27,184,000
				134,510,891
		Consumer Cyclical Services – 0.7%
	1,000,000	ServiceMaster Co. (The), 7.100%, 3/01/2018		860,000
	6,175,000	ServiceMaster Co. (The), 7.450%, 8/15/2027		4,693,000
	116,035,000	Western Union. (The), 6.200%, 11/17/2036		125,352,494
				130,905,494

See accompanying notes to financial statements.

23  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Consumer Products – 0.0%
$	695,000	Acco Brands Corp., 7.625%, 8/15/2015	$	667,200
	7,210,000	Snap-on, Inc., 6.700%, 3/01/2019		8,690,602
				9,357,802
		Distributors – 0.0%
	1,775,000	EQT Corp., 8.125%, 6/01/2019		2,200,649
	3,805,000	ONEOK, Inc., 6.000%, 6/15/2035		3,935,382
				6,136,031
		Diversified Manufacturing – 0.4%
	1,435,000	Textron Financial Corp., 5.400%, 4/28/2013		1,506,737
	550,000	Textron Financial Corp., Series E, MTN, 5.125%, 8/15/2014		569,737
	19,900,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		26,929,041
	7,145,000	Textron, Inc., 5.600%, 12/01/2017		7,719,330
	23,658,000	Textron, Inc., EMTN, 6.625%, 4/07/2020, (GBP)		37,491,124
				74,215,969
		Electric – 3.1%
	4,875,000	AES Corp. (The), 7.750%, 3/01/2014		5,216,250
	2,090,000	AES Corp. (The), 8.375%, 3/01/2011, (GBP)(c)		3,280,225
	12,652,634	AES Ironwood LLC, 8.857%, 11/30/2025		13,000,581
	1,490,551	AES Red Oak LLC, Series A, 8.540%, 11/30/2019		1,531,542
	75,513,000	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		79,913,898
	3,105,000	Ameren Illinois Co., 6.250%, 4/01/2018		3,549,580
	94,196,017	Bruce Mansfield Unit, 6.850%, 6/01/2034(c)		104,977,835
	4,698,883	CE Generation LLC, 7.416%, 12/15/2018		4,820,499
	62,180,000	Cleveland Electric Illuminating Co. (The), 5.950%, 12/15/2036		63,523,648
	134,000	Commonwealth Edison Co., 4.750%, 12/01/2011(c)		134,362
	5,295,000	Dynegy Holdings, Inc., 7.125%, 5/15/2018		3,613,838
	11,835,000	Dynegy Holdings, Inc., 7.625%, 10/15/2026		7,130,587
	1,504,000	Dynegy Holdings, Inc., 7.750%, 6/01/2019		1,030,240
	2,000,000	Dynegy Holdings, Inc., 8.375%, 5/01/2016		1,560,000
	23,200,000	Edison Mission Energy, 7.625%, 5/15/2027		15,602,000

Principal Amount (‡)		Description	Value (†)
		Electric – continued
$	11,581,000	Endesa SA/Cayman Islands, 7.875%, 2/01/2027	$	13,309,244
	7,425,000	Energy Future Holdings Corp., 10.000%, 1/15/2020, 144A		7,371,243
	4,250,000	Enersis SA, Cayman Islands, 7.400%, 12/01/2016		5,021,825
	25,460,000	ITC Holdings Corp., 5.875%, 9/30/2016, 144A		28,312,182
	37,955,000	ITC Holdings Corp., 6.375%, 9/30/2036, 144A		41,912,302
	23,775,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027(c)		11,412,000
	57,010,000	NiSource Finance Corp., 6.400%, 3/15/2018		66,117,176
	1,235,000	NiSource Finance Corp., 6.800%, 1/15/2019		1,464,894
	860,159	Power Receivables Finance LLC, 6.290%, 1/01/2012, 144A		860,176
	5,000,625	Quezon Power Philippines Co., 8.860%, 6/15/2017		5,175,647
	889,699	Salton Sea Funding Corp., Series E, 8.300%, 5/30/2011		905,402
	209,197	Salton Sea Funding Corp., Series F, 7.475%, 11/30/2018		231,842
	1,000,000	SP PowerAssets Ltd., EMTN, 3.730%, 10/22/2010, (SGD)		761,318
	70,980,000	TXU Corp., Series P, 5.550%, 11/15/2014		37,974,300
	140,586,000	TXU Corp., Series Q, 6.500%, 11/15/2024		53,774,145
	9,406,000	TXU Corp., Series R, 6.550%, 11/15/2034		3,574,280
	9,175,000	White Pine Hydro LLC, 6.310%, 7/10/2017(c)		9,641,732
	14,695,000	White Pine Hydro LLC, 6.960%, 7/10/2037(c)		14,799,775
	5,000,000	White Pine Hydro Portfolio LLC, 7.260%, 7/20/2015(c)		4,538,500
				616,043,068
		Entertainment – 0.0%
	10,000	Time Warner, Inc., 7.625%, 4/15/2031		12,398
		Financial Other – 0.2%
	38,476,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A		46,769,887
		Food & Beverage – 0.2%
	2,115,000	ARAMARK Corp., 5.000%, 6/01/2012		2,120,287
	31,590,000	Corn Products International, Inc., 6.625%, 4/15/2037		34,505,915
				36,626,202
		Government Owned – No Guarantee – 0.2%
	34,515,000	DP World Ltd., 6.850%, 7/02/2037, 144A		32,281,465
		Health Insurance – 0.1%
	20,530,000	CIGNA Corp., 6.150%, 11/15/2036		22,605,419

See accompanying notes to financial statements.

|  24

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Health Insurance – continued
$	2,500,000	CIGNA Corp., 6.350%, 3/15/2018	$	2,939,485
				25,544,904
		Healthcare – 2.2%
	7,100,000	Boston Scientific Corp., 5.125%, 1/12/2017		7,172,207
	3,725,000	Boston Scientific Corp., 5.450%, 6/15/2014		3,953,953
	15,410,000	Boston Scientific Corp., 6.000%, 1/15/2020		16,435,366
	7,230,000	Boston Scientific Corp., 6.400%, 6/15/2016		7,859,458
	22,142,000	Boston Scientific Corp., 7.000%, 11/15/2035		22,375,731
	13,400,000	HCA, Inc., 5.750%, 3/15/2014		13,215,750
	7,800,000	HCA, Inc., 6.250%, 2/15/2013		7,936,500
	17,380,000	HCA, Inc., 6.375%, 1/15/2015		17,336,550
	63,735,000	HCA, Inc., 6.500%, 2/15/2016		63,735,000
	3,045,000	HCA, Inc., 6.750%, 7/15/2013		3,105,900
	26,900,000	HCA, Inc., 7.050%, 12/01/2027		23,672,000
	20,165,000	HCA, Inc., 7.190%, 11/15/2015		19,761,700
	27,039,000	HCA, Inc., 7.500%, 12/15/2023		25,416,660
	25,455,000	HCA, Inc., 7.500%, 11/06/2033		23,354,963
	70,456,000	HCA, Inc., 7.690%, 6/15/2025		65,876,360
	44,984,000	HCA, Inc., 8.360%, 4/15/2024		44,084,320
	21,924,000	HCA, Inc., MTN, 7.580%, 9/15/2025		20,389,320
	12,066,000	HCA, Inc., MTN, 7.750%, 7/15/2036		11,100,720
	4,710,000	Owens & Minor, Inc., 6.350%, 4/15/2016(c)		4,807,728
	34,198,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		27,700,380
	560,000	Tenet Healthcare Corp., 9.250%, 2/01/2015		601,300
				429,891,866
		Home Construction – 0.5%
	6,430,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2015		4,822,500
	19,270,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016		12,525,500
	6,249,000	K. Hovnanian Enterprises, Inc., 6.375%, 12/15/2014		4,499,280
	4,050,000	K. Hovnanian Enterprises, Inc., 6.500%, 1/15/2014		3,037,500
	1,650,000	K. Hovnanian Enterprises, Inc., 7.500%, 5/15/2016		1,089,000

Principal Amount (‡)		Description	Value (†)
		Home Construction – continued
$	2,865,000	K. Hovnanian Enterprises, Inc., 7.750%, 5/15/2013	$	2,531,944
	1,690,000	K. Hovnanian Enterprises, Inc., 8.875%, 4/01/2012		1,622,400
	895,000	KB Home, 5.875%, 1/15/2015		845,775
	6,007,000	Pulte Group, Inc., 5.200%, 2/15/2015		5,811,773
	65,355,000	Pulte Group, Inc., 6.000%, 2/15/2035		49,016,250
	17,240,000	Pulte Group, Inc., 6.375%, 5/15/2033		13,792,000
	8,100,000	Toll Brothers Finance Corp., 5.150%, 5/15/2015		8,185,568
				107,779,490
		Independent Energy – 0.8%
	9,585,000	Anadarko Petroleum Corp., 6.375%, 9/15/2017		10,562,239
	80,585,000	Anadarko Petroleum Corp., 6.450%, 9/15/2036		80,681,944
	5,925,000	Chesapeake Energy Corp., 6.250%, 1/15/2017, (EUR)		8,198,417
	2,615,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		2,713,062
	13,805,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		14,633,300
	20,226,000	Connacher Oil and Gas Ltd., 10.250%, 12/15/2015, 144A		20,529,390
	3,640,000	Connacher Oil and Gas Ltd., 11.750%, 7/15/2014, 144A		3,967,600
	8,782,000	Pioneer Natural Resources Co., 7.200%, 1/15/2028		9,055,015
	9,825,000	QEP Resources, Inc., 6.875%, 3/01/2021		10,635,562
	4,928,000	Williams Cos., Inc. (The), Series A, 7.500%, 1/15/2031		5,575,845
				166,552,374
		Industrial Other – 0.2%
	485,000	Great Lakes Dredge & Dock Corp., 7.750%, 12/15/2013		487,425
	26,410,000	Ranhill Labuan Ltd., 12.500%, 10/26/2011, 144A		23,769,000
	10,540,000	Worthington Industries, Inc., 6.500%, 4/15/2020		11,667,601
				35,924,026
		Integrated Energy – 0.0%
	1,149,900	PF Export Receivables Master Trust, Series A, 6.436%, 6/01/2015, 144A		1,230,393
		Life Insurance – 0.9%
	3,245,000	American International Group, Inc., Series G, MTN, 5.600%, 10/18/2016		3,309,900
	29,065,000	American International Group, Inc., Series G, MTN, 5.850%, 1/16/2018		30,082,275

See accompanying notes to financial statements.

25  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Life Insurance – continued
$	7,075,000	American International Group, Inc., Series MP, GMTN, 5.450%, 5/18/2017	$	7,198,812
	4,145,000	American International Group, Inc., Series MPLE, 4.900%, 6/02/2014, (CAD)		3,887,574
	6,655,000	ASIF III Jersey Ltd., Series 2003-G, EMTN, 4.750%, 9/11/2013, (EUR)		9,359,601
	22,550,000	MetLife, Inc., 6.400%, 12/15/2066		21,084,250
	12,020,000	MetLife, Inc., 10.750%, 8/01/2069		15,595,950
	57,985,000	Mutual of Omaha Insurance Co., 6.800%, 6/15/2036, 144A		55,343,667
	6,365,000	NLV Financial Corp., 7.500%, 8/15/2033, 144A		5,883,889
	5,670,000	Penn Mutual Life Insurance Co. (The), 6.650%, 6/15/2034, 144A		5,139,747
	9,965,000	Unum Group, 7.125%, 9/30/2016		11,500,417
				168,386,082
		Local Authorities – 0.7%
	1,507,000	Ontario Hydro, Zero Coupon, 11/27/2020, (CAD)		979,294
	14,353,465	Province of Alberta, 5.930%, 9/16/2016, (CAD)		15,914,922
	730,000	Province of British Columbia, 5.750%, 1/09/2012, (CAD)		747,574
	760,000	Province of Ontario, 4.400%, 12/02/2011, (CAD)		763,730
	92,365,000	Queensland Treasury Corp., 7.125%, 9/18/2017, 144A, (NZD)		74,942,136
	60,000	Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011, (AUD)		58,454
	38,965,000	Queensland Treasury Corp., Series 14, 5.750%, 11/21/2014, (AUD)		38,441,692
				131,847,802
		Lodging – 0.0%
	8,450,000	Wyndham Worldwide Corp., 5.750%, 2/01/2018		8,476,761
		Media Cable – 1.6%
	15,055,000	Comcast Corp., 5.650%, 6/15/2035		15,197,992
	2,300,000	Comcast Corp., 6.500%, 11/15/2035		2,571,087
	192,208,000	Comcast Corp., 6.950%, 8/15/2037		225,381,179
	1,550,000	CSC Holdings LLC, 7.875%, 2/15/2018		1,691,437
	37,585,000	Shaw Communications, Inc., 5.650%, 10/01/2019, (CAD)		38,903,343
	26,541,000	Time Warner Cable, Inc., 6.750%, 7/01/2018		31,653,779
				315,398,817

Principal Amount (‡)		Description	Value (†)
		Media Non-Cable – 0.5%
$	1,645,000	Clear Channel Communications, Inc., 4.400%, 5/15/2011	$	1,601,818
	5,765,000	Clear Channel Communications, Inc., 5.000%, 3/15/2012		5,447,925
	6,840,000	Clear Channel Communications, Inc., 6.250%, 3/15/2011		6,788,700
	54,025,000	News America, Inc., 6.150%, 3/01/2037		58,171,473
	21,180,000	News America, Inc., 6.400%, 12/15/2035		23,488,006
				95,497,922
		Metals & Mining – 0.4%
	11,557,000	Alcoa, Inc., 5.720%, 2/23/2019		11,748,419
	4,935,000	Alcoa, Inc., 5.870%, 2/23/2022		4,854,332
	2,050,000	Alcoa, Inc., 5.950%, 2/01/2037		1,886,814
	6,490,000	Alcoa, Inc., 6.750%, 1/15/2028		6,602,011
	13,180,000	Algoma Acquisition Corp., 9.875%, 6/15/2015, 144A		11,746,675
	1,840,000	Rio Tinto Alcan, Inc., 5.750%, 6/01/2035		2,009,350
	11,175,000	United States Steel Corp., 6.050%, 6/01/2017		11,077,219
	9,625,000	United States Steel Corp., 6.650%, 6/01/2037		8,542,187
	23,520,000	United States Steel Corp., 7.000%, 2/01/2018		23,990,400
				82,457,407
		Mortgage Related – 0.0%
	274,167	FHLMC, 5.000%, 12/01/2031		290,566
		Non-Captive Consumer – 4.3%
	4,690,000	American General Finance Corp., MTN, 5.750%, 9/15/2016		3,740,275
	6,200,000	American General Finance Corp., Series H, MTN, 5.375%, 10/01/2012		5,866,750
	11,169,000	American General Finance Corp., Series I, MTN, 4.875%, 7/15/2012		10,554,705
	13,927,000	American General Finance Corp., Series I, MTN, 5.850%, 6/01/2013		12,847,658
	4,800,000	American General Finance Corp., Series J, MTN, 5.900%, 9/15/2012		4,584,000
	935,000	American General Finance Corp., Series J, MTN, 6.500%, 9/15/2017		738,650
	340,340,000	American General Finance Corp., Series J, MTN, 6.900%, 12/15/2017		284,183,900

See accompanying notes to financial statements.

|  26

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Non-Captive Consumer – continued
$	82,818,000	Residential Capital LLC, 9.625%, 5/15/2015	$	83,439,135
	1,305,000	SLM Corp., 6.000%, 5/10/2012, (AUD)		1,173,346
	150,125(††)	SLM Corp., 6.000%, 12/15/2043		2,903,042
	27,880,000	SLM Corp., MTN, 5.050%, 11/14/2014		26,549,594
	4,875,000	SLM Corp., MTN, 5.125%, 8/27/2012		4,928,274
	2,030,000	SLM Corp., MTN, 8.000%, 3/25/2020		2,014,426
	9,200,000	SLM Corp., Series 7, EMTN, 4.750%, 3/17/2014, (EUR)		11,484,257
	76,745,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		75,208,872
	57,166,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		54,802,986
	23,623,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		18,839,555
	28,262,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		28,492,448
	34,835,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		33,896,719
	1,785,000	SLM Corp., Series A, MTN, 5.400%, 10/25/2011		1,803,457
	40,230,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		30,935,703
	140,870,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		142,287,716
				841,275,468
		Non-Captive Diversified – 6.9%
	464,000	Ally Financial, Inc., 6.625%, 12/17/2010		466,900
	30,190,000	Ally Financial, Inc., 6.750%, 12/01/2014		31,454,206
	4,229,000	Ally Financial, Inc., 6.875%, 8/28/2012		4,414,019
	10,000	Ally Financial, Inc., 6.875%, 8/28/2012		10,416
	25,000	Ally Financial, Inc., 7.250%, 3/02/2011		25,438
	23,588,000	Ally Financial, Inc., 7.500%, 12/31/2013		25,062,250
	50,810,000	Ally Financial, Inc., 7.500%, 9/15/2020, 144A		54,112,650
	44,981,000	Ally Financial, Inc., 8.000%, 12/31/2018		46,217,978
	35,442,000	Ally Financial, Inc., 8.000%, 11/01/2031		38,011,545
	72,545,000	Ally Financial, Inc., 8.300%, 2/12/2015, 144A		79,074,050
	25,935,178	CIT Group, Inc., 7.000%, 5/01/2013		26,064,854
	38,902,776	CIT Group, Inc., 7.000%, 5/01/2014		38,805,519
	38,902,776	CIT Group, Inc., 7.000%, 5/01/2015		38,611,005

Principal Amount (‡)		Description	Value (†)
		Non-Captive Diversified – continued
$	97,594,976	CIT Group, Inc., 7.000%, 5/01/2016	$	96,131,051
	102,048,173	CIT Group, Inc., 7.000%, 5/01/2017		99,879,649
	44,525,000	General Electric Capital Australia Funding Pty Ltd., EMTN, 8.000%, 2/13/2012, (AUD)		44,102,605
	89,985,000	General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)		68,715,686
	15,000,000	General Electric Capital Corp., Series A, GMTN, 2.960%, 5/18/2012, (SGD)		11,549,818
	150,000,000	General Electric Capital Corp., Series A, GMTN, 3.485%, 3/08/2012, (SGD)		116,194,510
	84,065,000	General Electric Capital Corp., Series A, GMTN, 7.625%, 12/10/2014, (NZD)		65,789,418
	22,590,000	General Electric Capital Corp., Series A, MTN, 0.826%, 5/13/2024(b)		18,732,622
	266,643,000	General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		201,833,308
	7,270,000	General Motors Acceptance Corp. of Canada Ltd., EMTN, 7.125%, 9/13/2011, (AUD)		6,837,099
	360,000	International Lease Finance Corp., 5.875%, 5/01/2013		360,000
	15,925,000	International Lease Finance Corp., 6.375%, 3/25/2013		16,004,625
	35,950,000	International Lease Finance Corp., 8.625%, 9/15/2015, 144A		38,466,500
	415,000	International Lease Finance Corp., Series Q, MTN, 5.250%, 1/10/2013		409,294
	3,680,000	International Lease Finance Corp., Series R, MTN, 5.625%, 9/20/2013		3,611,000
	3,545,000	International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		3,438,650
	52,875,000	iStar Financial, Inc., 5.150%, 3/01/2012		44,943,750
	3,865,000	iStar Financial, Inc., 5.500%, 6/15/2012		3,246,600
	30,335,000	iStar Financial, Inc., 5.650%, 9/15/2011		27,453,175
	5,305,000	iStar Financial, Inc., 5.800%, 3/15/2011		4,960,175
	6,565,000	iStar Financial, Inc., 5.850%, 3/15/2017		4,972,988
	11,605,000	iStar Financial, Inc., 5.875%, 3/15/2016		8,776,281
	5,655,000	iStar Financial, Inc., 6.050%, 4/15/2015		4,297,800
	46,795,000	iStar Financial, Inc., 8.625%, 6/01/2013		38,137,925
	2,330,000	iStar Financial, Inc., Series B, 5.125%, 4/01/2011		2,158,163

See accompanying notes to financial statements.

27  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Non-Captive Diversified – continued
$	7,645,000	iStar Financial, Inc., Series B, 5.700%, 3/01/2014	$	5,934,431
	60,205,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		47,712,462
				1,366,980,415
		Oil Field Services – 1.5%
	10,680,000	Allis-Chalmers Energy, Inc., 8.500%, 3/01/2017		10,733,400
	11,660,000	Allis-Chalmers Energy, Inc., 9.000%, 1/15/2014		11,776,600
	15,693,000	Nabors Industries, Inc., 6.150%, 2/15/2018		17,465,964
	134,360,000	Nabors Industries, Inc., 9.250%, 1/15/2019		171,926,250
	4,497,000	Parker Drilling Co., 9.125%, 4/01/2018, 144A		4,564,455
	23,050,000	Rowan Cos., Inc., 7.875%, 8/01/2019		27,510,244
	25,600,000	Weatherford International Ltd., 6.500%, 8/01/2036		25,885,952
	4,250,000	Weatherford International Ltd., 6.800%, 6/15/2037		4,454,450
	13,670,000	Weatherford International Ltd., 7.000%, 3/15/2038		14,520,821
				288,838,136
		Packaging – 0.1%
	3,450,000	OI European Group BV, 6.875%, 3/31/2017, 144A, (EUR)		4,891,342
	2,500,000	Owens-Brockway Glass Container, Inc., 6.750%, 12/01/2014, (EUR)		3,493,329
	18,644,000	Owens-Illinois, Inc., 7.800%, 5/15/2018		19,995,690
				28,380,361
		Paper – 2.7%
	49,873,000	Fibria Overseas Finance Ltd., 7.500%, 5/04/2020, 144A		52,927,721
	26,262,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		26,984,205
	31,317,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		32,413,095
	470,000	Georgia-Pacific LLC, 7.700%, 6/15/2015		520,525
	80,840,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		84,882,000
	21,749,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		24,413,253
	16,307,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		18,589,980
	4,447,000	International Paper Co., 6.875%, 11/01/2023		4,831,354
	167,125,000	International Paper Co., 7.950%, 6/15/2018		202,680,677
	10,392,000	International Paper Co., 8.700%, 6/15/2038		13,277,110

Principal Amount (‡)		Description	Value (†)
		Paper – continued
$	24,586,000	Westvaco Corp., 7.950%, 2/15/2031	$	26,543,685
	36,799,000	Westvaco Corp., 8.200%, 1/15/2030		40,247,324
	4,127,000	Weyerhaeuser Co., 6.950%, 10/01/2027		4,070,402
	1,535,000	Weyerhaeuser Co., 7.375%, 3/15/2032		1,563,255
				533,944,586
		Pharmaceuticals – 0.3%
	53,635,000	Elan Finance PLC/Elan Finance Corp., 8.875%, 12/01/2013		54,975,875
		Pipelines – 2.1%
	27,325,000	DCP Midstream LP, 6.450%, 11/03/2036, 144A		29,742,825
	12,209,000	El Paso Corp., 6.950%, 6/01/2028		11,512,843
	2,045,000	El Paso Corp., 7.420%, 2/15/2037		1,950,020
	1,500,000	El Paso Corp., GMTN, 7.750%, 1/15/2032		1,557,539
	1,000,000	El Paso Corp., GMTN, 7.800%, 8/01/2031		1,037,869
	7,325,000	Energy Transfer Partners LP, 6.125%, 2/15/2017		8,126,113
	11,435,000	Energy Transfer Partners LP, 6.625%, 10/15/2036		12,354,294
	25,030,000	Enterprise Products Operating LLP, 6.300%, 9/15/2017		28,869,652
	7,500,000	Florida Gas Transmission Co., 7.900%, 5/15/2019, 144A		9,413,197
	843,000	Kinder Morgan Energy Partners LP, 5.800%, 3/15/2035		845,158
	57,969,744	Maritimes & Northeast Pipeline LLC, 7.500%, 5/31/2014, 144A(c)		63,287,888
	116,405,000	NGPL PipeCo LLC, 7.119%, 12/15/2017, 144A		126,299,425
	9,450,000	ONEOK Partners LP, 6.650%, 10/01/2036		10,606,633
	28,845,000	Plains All American Pipeline LP, 6.125%, 1/15/2017		32,224,048
	62,130,000	Plains All American Pipeline LP, 6.650%, 1/15/2037		67,342,769
	5,572,000	Transportadora de Gas del Sur SA, 7.875%, 5/14/2017, 144A		5,446,630
				410,616,903
		Property & Casualty Insurance – 0.6%
	4,090,000	Hanover Insurance Group, Inc. (The), 7.500%, 3/01/2020		4,551,589
	15,945,000	Liberty Mutual Group, Inc., 6.500%, 3/15/2035, 144A		14,600,837
	27,550,000	Marsh & McLennan Cos., Inc., 5.375%, 7/15/2014		29,754,716
	51,522,000	Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033		50,098,653

See accompanying notes to financial statements.

|  28

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Property & Casualty Insurance – continued
$	8,600,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A	$	3,870,000
	5,665,000	White Mountains Re Group Ltd., 6.375%, 3/20/2017, 144A		5,726,788
	6,415,000	Willis North America, Inc., 6.200%, 3/28/2017		6,835,657
	6,575,000	XL Group PLC, 6.250%, 5/15/2027		6,615,035
	2,110,000	XL Group PLC, 6.375%, 11/15/2024		2,192,605
				124,245,880
		Railroads – 0.1%
	2,680,000	Canadian Pacific Railway Co., 5.750%, 3/15/2033		2,823,340
	4,578,000	CSX Corp., MTN, 6.000%, 10/01/2036		5,103,788
	7,944,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(c)		5,766,549
	63,300	Missouri Pacific Railroad Co., Series A, 4.750%, 1/01/2020(c)		62,667
				13,756,344
		Refining – 0.0%
	1,782,000	Valero Energy Corp., 6.625%, 6/15/2037		1,789,561
		REITs – 0.4%
	68,360,000	WEA Finance LLC/WT Finance Australia Property Ltd., 6.750%, 9/02/2019, 144A		80,993,475
		REITs – Apartments – 0.3%
	2,565,000	Camden Property Trust, 5.000%, 6/15/2015		2,759,930
	40,075,000	Camden Property Trust, 5.700%, 5/15/2017		42,548,268
	4,680,000	ERP Operating LP, 5.125%, 3/15/2016		5,124,385
	3,000,000	ERP Operating LP, 5.375%, 8/01/2016		3,311,601
				53,744,184
		REITs – Diversified – 0.0%
	5,720,000	Duke Realty LP, 5.950%, 2/15/2017		6,136,954
		REITs – Industrials – 0.2%
	7,750,000	First Industrial LP, 5.950%, 5/15/2017		6,602,116
	6,022,000	ProLogis, 5.625%, 11/15/2015		5,891,401
	6,110,000	ProLogis, 5.625%, 11/15/2016		5,882,378
	6,375,000	ProLogis, 5.750%, 4/01/2016		6,293,572
	2,332,000	ProLogis, 6.625%, 5/15/2018		2,298,470

Principal Amount (‡)		Description	Value (†)
		REITs – Industrials – continued
$	1,595,000	ProLogis, 6.875%, 3/15/2020	$	1,568,064
	3,020,000	ProLogis, 7.375%, 10/30/2019		3,047,712
				31,583,713
		REITs – Office – 0.3%
	57,890,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		59,542,007
	5,640,000	Highwoods Properties, Inc., 7.500%, 4/15/2018		6,315,813
				65,857,820
		REITs – Regional Malls – 0.1%
	9,032,000	Simon Property Group LP, 5.750%, 12/01/2015		10,285,054
	1,690,000	Simon Property Group LP, 6.125%, 5/30/2018		1,961,139
				12,246,193
		Restaurants – 0.0%
	3,750,000	McDonald’s Corp., EMTN, 3.628%, 10/10/2010, (SGD)		2,852,464
		Retailers – 1.0%
	1,920,000	Dillard’s, Inc., 6.625%, 1/15/2018		1,852,800
	4,680,000	Dillard’s, Inc., 7.000%, 12/01/2028		4,095,000
	1,740,000	Dillard’s, Inc., 7.130%, 8/01/2018		1,700,850
	7,182,000	Dillard’s, Inc., 7.750%, 7/15/2026		6,571,530
	1,000,000	Dillard’s, Inc., 7.750%, 5/15/2027		905,000
	14,269,000	Foot Locker, Inc., 8.500%, 1/15/2022		13,448,532
	5,160,000	J.C. Penney Corp., Inc., 5.750%, 2/15/2018		5,314,800
	50,232,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		48,473,880
	2,798,000	J.C. Penney Corp., Inc., 7.125%, 11/15/2023		2,923,910
	5,580,000	J.C. Penney Corp., Inc., 7.625%, 3/01/2097		5,412,600
	28,445,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		28,160,550
	14,133,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		13,638,345
	2,098,000	Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		2,124,225
	1,485,000	Macy’s Retail Holdings, Inc., 8.375%, 7/15/2015		1,700,325
	9,245,000	Marks & Spencer PLC, 7.125%, 12/01/2037, 144A		9,806,957
	39,965,000	Toys R Us, Inc., 7.375%, 10/15/2018		38,166,575
	11,255,000	Toys R Us, Inc., 7.875%, 4/15/2013		11,733,338
				196,029,217

See accompanying notes to financial statements.

29  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Sovereigns – 6.7%
	10,000,000,000	Indonesia Government International Bond, 9.500%, 7/15/2023, (IDR)	$	1,254,062
	25,000,000,000	Indonesia Treasury Bond, 10.250%, 7/15/2027, (IDR)		3,252,191
	145,156,000,000	Indonesia Treasury Bond, Series FR43, 10.250%, 7/15/2022, (IDR)		19,147,402
	378,003,000,000	Indonesia Treasury Bond, Series ZC3, Zero Coupon, 11/20/2012, (IDR)		37,009,607
	498,832,000,000	Indonesia Treasury Bond, Series FR44, 10.000%, 9/15/2024, (IDR)		64,802,385
	317,658,000,000	Indonesia Treasury Bond, Series FR52, 10.500%, 8/15/2030, (IDR)		42,523,569
	161,775,000	Ireland Government Bond, 4.500%, 10/18/2018, (EUR)		193,854,502
	9,025,000	Ireland Government Bond, 5.000%, 10/18/2020, (EUR)		10,809,094
	43,150,000	Ireland Government Bond, 5.400%, 3/13/2025, (EUR)		50,782,976
	5,258,000(†††)	Mexican Fixed Rate Bonds, Series M-10, 7.250%, 12/15/2016, (MXN)		44,758,080
	28,585,700(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		257,986,189
	4,557,000(†††)	Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012, (MXN)		38,998,473
	110,620,000	New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010, (AUD)		107,267,104
	15,305,000	New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012, (AUD)		15,011,033
	95,840,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		93,478,756
	35,750,000	Portugal Obrigacoes do Tesouro OT, 3.850%, 4/15/2021, (EUR)		39,578,667
	9,000,000	Portugal Obrigacoes do Tesouro OT, 4.800%, 6/15/2020, (EUR)		10,945,756
	98,690,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		65,122,568
	17,305,000	Republic of Brazil, 12.500%, 1/05/2016, (BRL)		11,787,241
	114,735,000	Republic of Brazil, 12.500%, 1/05/2022, (BRL)		83,237,123
	26,800,000	Republic of Croatia, 6.750%, 11/05/2019, 144A		29,279,000
	4,616,100,000	Republic of Iceland, 7.250%, 5/17/2013, (ISK)		24,676,614
	3,740,470,000	Republic of Iceland, 8.000%, 7/22/2011, (ISK)		19,060,951

Principal Amount (‡)		Description	Value (†)
		Sovereigns – continued
	7,859,805,000	Republic of Iceland, 13.750%, 12/10/2010, (ISK)	$	39,647,828
	5,980,000	Republic of Venezuela, 7.000%, 3/16/2015, (EUR)		6,733,748
				1,311,004,919
		Supermarkets – 0.7%
	3,000,000	American Stores Co., 7.900%, 5/01/2017		2,902,500
	13,145,000	American Stores Co., Series B, MTN, 7.100%, 3/20/2028		10,121,650
	100,590,000	New Albertson’s, Inc., 7.450%, 8/01/2029		81,477,900
	20,550,000	New Albertson’s, Inc., 7.750%, 6/15/2026		17,416,125
	9,715,000	New Albertson’s, Inc., 8.000%, 5/01/2031		7,917,725
	2,995,000	New Albertson’s, Inc., 8.700%, 5/01/2030		2,635,600
	17,575,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		12,851,719
				135,323,219
		Supranational – 1.9%
	11,505,000	European Investment Bank, 11.250%, 2/14/2013, (BRL)		7,172,946
	837,962,640,000	European Investment Bank, EMTN, Zero Coupon, 4/24/2013, 144A, (IDR)		80,857,527
	16,500,000	European Investment Bank, EMTN, 7.000%, 1/18/2012, (NZD)		12,581,732
	71,230,000	European Investment Bank, MTN, 6.250%, 4/15/2015, (AUD)		70,209,200
	345,270,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 5/20/2013, (IDR)		31,768,708
	185,840,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		145,351,040
	40,000,000	International Bank for Reconstruction & Development, 1.430%, 3/05/2014, (SGD)		30,608,532
				378,549,685
		Technology – 2.2%
	1,940,000	Advanced Micro Devices, Inc., 7.750%, 8/01/2020, 144A		2,003,050
	65,276,000	Agilent Technologies, Inc., 6.500%, 11/01/2017		75,191,163
	1,000,000	Alcatel-Lucent, EMTN, 6.375%, 4/07/2014, (EUR)		1,370,067
	71,937,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		52,334,167
	3,916,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		2,829,310

See accompanying notes to financial statements.

|  30

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Technology – continued
$	12,960,000	Arrow Electronics, Inc., 6.875%, 7/01/2013	$	14,456,647
	2,630,000	Arrow Electronics, Inc., 6.875%, 6/01/2018		3,001,672
	24,515,000	Avnet, Inc., 5.875%, 3/15/2014		26,740,398
	50,915,000	Avnet, Inc., 6.000%, 9/01/2015		56,146,516
	15,245,000	Avnet, Inc., 6.625%, 9/15/2016		17,485,039
	10,821,000	Corning, Inc., 6.850%, 3/01/2029		12,443,100
	5,645,000	Corning, Inc., 7.250%, 8/15/2036		6,473,517
	3,640,000	Eastman Kodak Co., 7.250%, 11/15/2013		3,494,400
	15,578,000	Equifax, Inc., 7.000%, 7/01/2037		17,666,278
	430,000	Freescale Semiconductor, Inc., 8.875%, 12/15/2014		429,462
	6,016,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016		5,474,560
	929,000	Motorola, Inc., 6.000%, 11/15/2017		1,037,059
	15,055,000	Motorola, Inc., 6.500%, 9/01/2025		16,384,206
	32,320,000	Motorola, Inc., 6.500%, 11/15/2028		34,316,245
	33,295,000	Motorola, Inc., 6.625%, 11/15/2037		35,604,941
	250,000	Motorola, Inc., 7.500%, 5/15/2025		296,480
	12,015,000	Nortel Networks Capital Corp., 7.875%, 6/15/2026(d)		7,809,750
	18,622,000	Nortel Networks Ltd., 6.875%, 9/01/2023(d)		5,121,050
	4,554,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		5,405,206
	30,805,000	Xerox Capital Trust I, 8.000%, 2/01/2027		31,342,979
	40,000	Xerox Corp., 6.350%, 5/15/2018		46,407
	615,000	Xerox Corp., MTN, 7.200%, 4/01/2016		722,472
				435,626,141
		Tobacco – 0.5%
	71,085,000	Reynolds American, Inc., 6.750%, 6/15/2017		79,950,508
	17,990,000	Reynolds American, Inc., 7.250%, 6/15/2037		18,886,658
				98,837,166
		Transportation Services – 0.5%
	20,469,000	APL Ltd., 8.000%, 1/15/2024(c)		14,021,265
	29,602,773	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 7/02/2015		28,122,635

Principal Amount (‡)		Description	Value (†)
		Transportation Services – continued
$	6,552,024	Atlas Air Pass Through Trust, Series 1998-1, Class C, 8.010%, 7/02/2011(e)	$	5,339,900
	11,446,643	Atlas Air Pass Through Trust, Series 1999-1, Class A-1, 7.200%, 7/02/2020		11,561,110
	652,627	Atlas Air Pass Through Trust, Series 1999-1, Class A-2, 6.880%, 1/02/2011		633,048
	13,944,263	Atlas Air Pass Through Trust, Series 1999-1, Class B, 7.630%, 7/02/2016		11,992,066
	15,689,997	Atlas Air Pass Through Trust, Series 1999-1, Class C, 8.770%, 7/02/2012(e)		12,787,347
	7,695,836	Atlas Air Pass Through Trust, Series 2000-1, Class B, 10.128%, 7/02/2017		7,541,919
	201,720	Atlas Air Pass Through Trust, Series 2000-1, Class C, 9.702%, 7/02/2011(e)		169,445
	2,675,000	Erac USA Finance Co., 7.000%, 10/15/2037, 144A		3,081,731
				95,250,466
		Treasuries – 19.5%
	421,197,000	Canadian Government, 1.000%, 9/01/2011, (CAD)		408,396,115
	315,530,000	Canadian Government, 1.250%, 12/01/2011, (CAD)		306,569,181
	587,055,000	Canadian Government, 2.000%, 9/01/2012, (CAD)		577,315,444
	245,000	Canadian Government, 2.750%, 12/01/2010, (CAD)		238,830
	228,647,000	Canadian Government, 3.500%, 6/01/2013, (CAD)		233,773,724
	412,215,000	Canadian Government, 3.750%, 6/01/2012, (CAD)		416,533,863
	246,645,000	Canadian Government, 3.750%, 6/01/2019, (CAD)		259,767,118
	297,760,000	Canadian Government, 4.250%, 6/01/2018, (CAD)		324,705,703
	431,800,000	Canadian Government, 5.250%, 6/01/2012, (CAD)		446,647,977
	5,911,048	Hellenic Republic Government Bond, 2.300%, 7/25/2030, (EUR)		3,931,006
	33,000,000	New Zealand Government Bond, 6.000%, 12/15/2017, (NZD)		26,039,143
	224,730,000	New Zealand Government Bond, 6.500%, 4/15/2013, (NZD)		175,443,583
	668,075,000	Norwegian Government, 4.250%, 5/19/2017, (NOK)		122,866,208
	319,620,000	Norwegian Government, 5.000%, 5/15/2015, (NOK)		59,945,292
	530,990,000	Norwegian Government, 6.000%, 5/16/2011, (NOK)		92,209,240
	2,021,445,000	Norwegian Government, 6.500%, 5/15/2013, (NOK)		378,919,327
				3,833,301,754

See accompanying notes to financial statements.

31  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Utility Other – 0.0%
$	4,800,000	Listrindo Capital BV, 9.250%, 1/29/2015, 144A	$	5,444,880
		Wireless – 1.1%
	38,644,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		38,837,220
	6,128,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		6,166,300
	57,512,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		57,224,440
	29,984,000	Sprint Capital Corp., 6.875%, 11/15/2028		27,435,360
	38,286,000	Sprint Capital Corp., 6.900%, 5/01/2019		38,477,430
	8,390,000	Sprint Capital Corp., 8.750%, 3/15/2032		8,809,500
	15,252,000	Sprint Nextel Corp., 6.000%, 12/01/2016		15,061,350
	16,745,000	True Move Co. Ltd., 10.750%, 12/16/2013, 144A		17,791,563
				209,803,163
		Wirelines – 3.0%
	24,204,000	AT&T Corp., 6.500%, 3/15/2029		27,021,975
	8,395,000	Axtel SAB de CV, 9.000%, 9/22/2019, 144A		7,744,387
	5,790,000	Bell Canada, MTN, 6.550%, 5/01/2029, 144A, (CAD)		6,063,772
	12,705,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		14,384,100
	45,835,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		46,526,378
	3,940,000	BellSouth Telecommunications, Inc., 7.000%, 12/01/2095		4,453,681
	1,000,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		760,000
	8,735,000	Embarq Corp., 7.995%, 6/01/2036		9,287,305
	730,000	Frontier Communications Corp., 9.000%, 8/15/2031		778,363
	17,975,000	GTE Corp., 6.940%, 4/15/2028		20,778,345
	640,000	Hawaiian Telcom Communications, Inc., Series B, 12.500%, 5/01/2015(d)		64
	1,600,000	Koninklijke (Royal) KPN NV, EMTN, 5.750%, 3/18/2016, (GBP)		2,782,704
	2,750,000	Koninklijke (Royal) KPN NV, GMTN, 4.000%, 6/22/2015, (EUR)		3,963,040
	43,605,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		38,808,450
	17,580,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		16,525,200

Principal Amount (‡)		Description	Value (†)
		Wirelines – continued
$	30,365,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018	$	30,365,000
	64,147,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		60,298,180
	15,925,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		16,084,250
	40,420,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		40,824,200
	40,555,000	Qwest Corp., 6.875%, 9/15/2033		40,048,062
	1,505,000	Qwest Corp., 7.200%, 11/10/2026		1,505,000
	10,620,000	Qwest Corp., 7.250%, 9/15/2025		11,151,000
	2,890,000	Qwest Corp., 7.500%, 6/15/2023		2,904,450
	39,844,000	Telecom Italia Capital SA, 6.000%, 9/30/2034		37,586,758
	26,495,000	Telecom Italia Capital SA, 6.375%, 11/15/2033		26,136,708
	45,415,000	Telus Corp., 4.950%, 3/15/2017, (CAD)		47,114,807
	27,020,000	Telus Corp., Series CG, 5.050%, 12/04/2019, (CAD)		27,396,584
	18,105,000	Verizon Maryland, Inc., Series B, 5.125%, 6/15/2033		16,427,934
	2,905,000	Verizon New England, Inc., 7.875%, 11/15/2029		3,359,935
	10,310,000	Verizon New York, Inc., Series B, 7.375%, 4/01/2032		12,165,408
	7,860,000	Verizon Pennsylvania, Inc., 6.000%, 12/01/2028		7,886,913
				581,132,953
		Total Non-Convertible Bonds
		(Identified Cost $15,074,397,521)		16,455,737,450
	Convertible Bonds – 7.6%
		Airlines – 0.1%
	15,495,000	AMR Corp., 6.250%, 10/15/2014		15,068,888
	1,730,000	UAL Corp., 4.500%, 6/30/2021		1,736,920
				16,805,808
		Automotive – 1.4%
	2,615,000	ArvinMeritor, Inc., (Step to Zero Coupon on 2/15/2019), 4.000%, 2/15/2027(f)		2,379,650
	176,290,000	Ford Motor Co., 4.250%, 11/15/2016		263,112,825
	12,335,000	Navistar International Corp., 3.000%, 10/15/2014		13,861,456
				279,353,931
		Diversified Manufacturing – 0.3%
	44,380,000	Owens-Brockway Glass Container, Inc., 3.000%, 6/01/2015, 144A		43,492,400
	24,037,000	Trinity Industries, Inc., 3.875%, 6/01/2036		21,753,485
				65,245,885

See accompanying notes to financial statements.

|  32

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Electric – 0.0%
$	1,000,000	CMS Energy Corp., 5.500%, 6/15/2029	$	1,341,250
		Healthcare – 0.3%
	32,436,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(f)		30,003,300
	14,480,000	Life Technologies Corp., 1.500%, 2/15/2024		16,344,300
	285,000	LifePoint Hospitals, Inc., 3.250%, 8/15/2025		278,231
	2,510,000	LifePoint Hospitals, Inc., 3.500%, 5/15/2014		2,497,450
	3,107,000	Omnicare, Inc., 3.250%, 12/15/2035		2,672,020
				51,795,301
		Independent Energy – 0.1%
	2,000,000	Chesapeake Energy Corp., 2.250%, 12/15/2038		1,537,500
	4,385,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		3,814,950
	4,290,000	Penn Virginia Corp., 4.500%, 11/15/2012		4,182,750
				9,535,200
		Lodging – 0.2%
	32,045,000	Host Hotels & Resorts, Inc., 2.625%, 4/15/2027, 144A		31,243,875
		Media Non-Cable – 0.0%
	10,106,866	Liberty Media LLC, 3.500%, 1/15/2031		5,381,906
		Metals & Mining – 0.1%
	1,255,000	Steel Dynamics, Inc., 5.125%, 6/15/2014		1,419,719
	16,535,000	United States Steel Corp., 4.000%, 5/15/2014		25,505,237
				26,924,956
		Non-Captive Diversified – 0.2%
	60,585,000	iStar Financial, Inc., 1.033%, 10/01/2012(b)		46,196,063
		Pharmaceuticals – 1.0%
	940,000	Human Genome Sciences, Inc., 2.250%, 10/15/2011		1,878,825
	51,585,000	Human Genome Sciences, Inc., 2.250%, 8/15/2012		94,593,993
	4,120,000	Kendle International, Inc., 3.375%, 7/15/2012		3,805,850
	26,120,000	Nektar Therapeutics, 3.250%, 9/28/2012		26,577,100
	34,079,000	Valeant Pharmaceuticals International, 4.000%, 11/15/2013		65,133,489
				191,989,257

Principal Amount (‡)		Description	Value (†)
		REITs – Industrials – 0.1%
$	28,230,000	ProLogis, 3.250%, 3/15/2015	$	27,665,400
		Technology – 2.8%
	22,522,000	Advanced Micro Devices, Inc., 6.000%, 5/01/2015		22,156,018
	3,760,000	Alcatel-Lucent USA, Inc., Series B, 2.875%, 6/15/2025		3,407,500
	330,000	Ciena Corp., 0.250%, 5/01/2013		294,525
	44,624,000	Ciena Corp., 0.875%, 6/15/2017		32,519,740
	8,680,000	Ciena Corp., 4.000%, 3/15/2015		9,320,150
	9,891,000	Intel Corp., 2.950%, 12/15/2035		9,779,726
	343,275,000	Intel Corp., 3.250%, 8/01/2039		400,773,563
	10,025,000	Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		9,385,906
	21,955,000	Micron Technology, Inc., 1.875%, 6/01/2014		19,512,506
	1,045,000	Nortel Networks Corp., 1.750%, 4/15/2012(d)		804,650
	49,636,000	Nortel Networks Corp., 2.125%, 4/15/2014(d)		38,219,720
				546,174,004
		Textile – 0.0%
	102,000	Dixie Yarns, Inc., 7.000%, 5/15/2012		95,880
		Wireless – 0.1%
	21,974,000	NII Holdings, Inc., 3.125%, 6/15/2012		21,314,780
		Wirelines – 0.9%
	48,075,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		45,490,969
	20,240,000	Level 3 Communications, Inc., 5.250%, 12/15/2011		20,240,000
	64,473,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(c)		57,461,561
	48,975,000	Level 3 Communications, Inc., Series B, 7.000%, 3/15/2015(c)		43,648,969
	700,000	Qwest Communications International, Inc., 3.500%, 11/15/2025		917,875
				167,759,374
		Total Convertible Bonds
		(Identified Cost $1,262,052,916)		1,488,822,870
	Municipals – 1.1%
		California – 0.3%
	5,425,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), Series C, (MBIA insured), 3.750%, 8/01/2028		4,771,342

See accompanying notes to financial statements.

33  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		California – continued
$	2,165,000	San Jose California Redevelopment Agency Tax Allocation (Merged Area Redevelopment), Series C, (Registered), (MBIA insured), 3.750%, 8/01/2028	$	1,987,275
	20,455,000	State of California, 4.500%, 10/01/2029		20,146,743
	5,140,000	State of California, 4.500%, 8/01/2030		5,040,541
	7,340,000	State of California, (AMBAC insured), 4.500%, 8/01/2027		7,296,767
	5,945,000	State of California, (AMBAC insured), 4.500%, 8/01/2030		5,829,964
	17,945,000	State of California (Various Purpose), (AMBAC insured), 4.500%, 12/01/2033		17,490,274
	3,805,000	State of California (Various Purpose), (MBIA insured), 3.250%, 12/01/2027		3,160,015
				65,722,921
		District of Columbia – 0.0%
	5,610,000	Metropolitan Washington DC Airports Authority, Series D, 8.000%, 10/01/2047		5,940,709
		Illinois – 0.0%
	2,440,000	Chicago O’Hare International Airport, Series A, (AGMC insured), 4.500%, 1/01/2038		2,445,832
		Michigan – 0.1%
	21,020,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034(c)		16,691,562
		Ohio – 0.1%
	10,390,000	Buckeye Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/01/2047(c)		7,588,440
		Virginia – 0.6%
	178,970,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(c)		123,918,828
		Total Municipals
		(Identified Cost $278,039,403)		222,308,292
		Total Bonds and Notes
		(Identified Cost $16,614,489,840)		18,166,868,612

Principal Amount (‡)		Description	Value (†)
	Bank Loans – 0.5%
		Chemicals – 0.1%
$	6,157,951	Hexion Specialty Chemicals, Inc., Extended Term Loan C1, 4.313%, 5/05/2015(g)	$	5,878,873
	1,182,741	Hexion Specialty Chemicals, Inc., Extended Term Loan C2, 4.063%, 5/05/2015(g)		1,129,139
				7,008,012
		Electric – 0.0%
	7,232,718	Texas Competitive Electric Holdings Company, LLC, Term Loan B2, 3.923%, 10/10/2014(g)		5,616,350
		Media Non-Cable – 0.0%
	4,666,005	Tribune Company, Term Loan X, 5.000%, 6/04/2009(d)(g)(h)		2,957,081
		Oil Field Services – 0.0%
	3,515,000	Dresser, Inc., 2nd Lien Term Loan, 6.112%, 5/04/2015(g)		3,386,843
	1,720,369	Dresser, Inc., Term Loan, 2.612%, 5/04/2014(g)		1,651,915
				5,038,758
		Printing & Publishing – 0.2%
	38,357,644	SuperMedia, Inc., Exit Term Loan, 11.000%, 12/31/2015(g)		29,899,783
		Wirelines – 0.2%
	5,859,871	FairPoint Communications, Inc., Initial Term Loan A, 4.750%, 3/31/2014(d)(g)		3,790,634
	17,739,671	FairPoint Communications, Inc., Initial Term Loan B, 5.000%, 3/31/2015(d)(g)		11,438,008
	24,742,278	Hawaiian Telcom Communications, Inc., New Tranche C Term Loan, 4.750%, 5/30/2014(g)(i)		18,865,987
	7,875,000	Level 3 Financing, Inc., Tranche A Term Loan, 2.700%, 3/13/2014(g)		7,174,676
				41,269,305
		Total Bank Loans
		(Identified Cost $101,189,439)		91,789,289
	Shares
	Preferred Stocks – 2.4%
	Convertible Preferred Stocks – 1.6%
		Automotive – 0.8%
	3,401,146	Ford Motor Co. Capital Trust II, 6.500%		162,948,905
		Capital Markets – 0.1%
	270,416	Newell Financial Trust I, 5.250%		10,698,333
		Commercial Banks – 0.1%
	12,483	Wells Fargo & Co., Series L, Class A, 7.500%		12,557,898

See accompanying notes to financial statements.

|  34

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Shares		Description	Value (†)
	Preferred Stocks – continued
		Diversified Financial Services – 0.2%
	25,823	Bank of America Corp., Series L, 7.250%	$	25,338,819
	304,895	Sovereign Capital Trust IV, 4.375%		11,281,115
				36,619,934
		Electric Utilities – 0.1%
	346,577	AES Trust III, 6.750%		16,917,290
	208,375	CMS Energy Trust I, 7.750%(c)(j)		7,293,125
				24,210,415
		Machinery – 0.0%
	263,437	United Rentals Trust I, 6.500%		8,825,139
		Oil, Gas & Consumable Fuels – 0.1%
	87,351	Chesapeake Energy Corp., 4.500%		7,512,186
	189,879	El Paso Energy Capital Trust I, 4.750%		7,262,872
	25,000	Williams Cos., Inc., 5.500%		2,185,937
				16,960,995
		REITs – Hotels – 0.0%
	53,600	FelCor Lodging Trust, Inc., Series A, 7.800%(e)		1,149,720
		Semiconductors & Semiconductor Equipment – 0.2%
	45,266	Lucent Technologies Capital Trust I, 7.750%		36,665,460
		Total Convertible Preferred Stocks
		(Identified Cost $283,388,873)		310,636,799
	Non-Convertible Preferred Stocks – 0.8%
		Banking – 0.2%
	52,843	Ally Financial, Inc., Series G, 7.000%, 144A		47,566,960
		Diversified Financial Services – 0.1%
	53,000	Bank of America Corp., 6.375%		1,228,540
	1,226,700	Citigroup Capital XIII, (fixed rate to 10/30/2015, variable rate thereafter), 7.875%		30,667,500
				31,896,040
		Electric Utilities – 0.0%
	2,925	Connecticut Light & Power Co., 1.900%		100,547
	100	Entergy Arkansas, Inc., 4.320%		7,947
	5,000	Entergy Mississippi, Inc., 4.360%		379,687
	665	Entergy New Orleans, Inc., 4.360%		50,124
	200	Entergy New Orleans, Inc., 4.750%		15,744
	867	MDU Resources Group, Inc., 5.100%		86,077
	360	Public Service Company of Oklahoma, 4.000%		24,480
	50,100	Southern California Edison Co., 4.780%		1,149,795
				1,814,401
		Household Durables – 0.0%
	36,783	Hovnanian Enterprises, Inc., 7.625%(e)		250,125
		Multi-Utilities – 0.0%
	1,100	Xcel Energy, Inc., 3.600%		76,868
		Oil, Gas & Consumable Fuels – 0.1%
	144,600	SandRidge Energy, Inc., 8.500%		15,089,328

Shares		Description	Value (†)
		REITs – Industrials – 0.1%
	2,318	Highwoods Properties, Inc., Series A, 8.625%	$	2,318,000
	169,007	ProLogis, Series C, 8.540%		8,450,350
				10,768,350
		Software – 0.2%
	38,000	Falcons Funding Trust I, (Step to 10.875% on 3/15/2015, variable rate after 3/15/2020), 8.875%, 144A(f)		40,078,125
		Thrifts & Mortgage Finance – 0.1%
	534,725	Countrywide Capital IV, 6.750%		12,881,525
		Total Non-Convertible Preferred Stocks
		(Identified Cost $115,396,774)		160,421,722
		Total Preferred Stocks
		(Identified Cost $398,785,647)		471,058,521
	Common Stocks – 2.2%
		Biotechnology – 0.2%
	1,409,794	Vertex Pharmaceuticals, Inc.(e)		48,736,579
		Containers & Packaging – 0.1%
	645,508	Owens-Illinois, Inc.(e)		18,112,954
	211,343	Smurfit-Stone Container Corp.(e)		3,882,371
				21,995,325
		Electronic Equipment, Instruments & Components – 0.1%
	630,490	Corning, Inc.		11,525,357
		Media – 0.0%
	4,746	Dex One Corp.(e)		58,281
	79,727	SuperMedia, Inc.(e)		842,714
				900,995
		Oil, Gas & Consumable Fuels – 0.1%
	1,026,979	Chesapeake Energy Corp.		23,261,074
	313,333	Repsol YPF SA, Sponsored ADR		8,082,613
				31,343,687
		Pharmaceuticals – 0.3%
	1,528,400	Bristol-Myers Squibb Co.		41,434,924
	690,207	Valeant Pharmaceuticals International, Inc.		17,289,695
				58,724,619
		Semiconductors & Semiconductor Equipment – 1.4%
	14,199,033	Intel Corp.		273,047,405
		Total Common Stocks
		(Identified Cost $423,765,367)		446,273,967
	Closed End Investment Companies – 0.2%
	392,579	Dreyfus High Yield Strategies Fund		1,754,828
	88,954	DWS High Income Trust		898,435
	860,000	Highland Credit Strategies Fund		6,303,800
	337,212	Morgan Stanley Emerging Markets Debt Fund, Inc.		3,810,496

See accompanying notes to financial statements.

35  |

Portfolio of investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Shares		Description	Value (†)
	Closed End Investment Companies – continued
	2,203,264	Western Asset High Income Opportunity Fund, Inc.	$	13,814,465
	1,158,115	Western Asset Managed High Income Fund, Inc.		7,458,261
		Total Closed End Investment Companies
		(Identified Cost $39,581,513)		34,040,285
	Principal Amount (‡)
	Short-Term Investments – 1.1%
$	2,428,753	Repurchase Agreement with State Street Corporation, dated 9/30/2010 at 0.000% to be repurchased at $2,428,753 on 10/01/2010 collateralized by $2,260,000 U.S. Treasury Note, 3.125% due 4/30/2017 valued at $2,474,929 including accrued interest (Note 2 of Notes to Financial Statements)		2,428,753
	221,962,985	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2010 at 0.000% to be repurchased at $221,962,985 on 10/01/2010 collateralized by $69,285,000 Federal Home Loan Bank, 0.785% due 11/25/2011 valued at $69,804,638; $148,120,000 Federal National Mortgage Association, 1.000% due 11/23/2011 valued at $149,971,500; $6,540,000 Federal Home Loan Bank, 3.250% due 3/11/2011 valued at $6,629,925 including accrued interest (Note 2 of Notes to Financial Statements)		221,962,985
		Total Short-Term Investments
		(Identified Cost $224,391,738)		224,391,738
		Total Investments – 98.6%
		(Identified Cost $17,802,203,544)(a)		19,434,422,412
		Other Assets Less Liabilities—1.4%		267,382,385
		Net Assets – 100.0%	$	19,701,804,797
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 25.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.

(a)	Federal Tax Information: At September 30, 2010, the net unrealized appreciation on investments based on a cost of $17,877,754,340 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	$	1,996,908,876
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(440,240,804	)
	Net unrealized appreciation	$	1,556,668,072
(b)	Variable rate security. Rate as of September 30, 2010 is disclosed.
(c)	Illiquid security. At September 30, 2010, the value of these securities amounted to $644,847,437 or 3.3% of net assets.
(d)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
(e)	Non-income producing security.
(f)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
(g)	Variable rate security. Rate shown represents the weighted average rate at September 30, 2010.
(h)	Issuer has filed for bankruptcy.
(i)	All or a portion of interest payment is paid-in-kind.
(j)	Fair valued security by the Fund’s investment adviser. At September 30, 2010 the value of this security amounted to $7,293,125 or 0.0% of net assets.
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, 2010, the total value of these securities amounted to $2,048,291,781 or 10.4% of net assets.
ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs are significantly influenced by trading on exchanges not located in the United States.
ABS	Asset-Backed Securities
AMBAC	American Municipal Bond Assurance Corp.
EMTN	Euro Medium Term Note
FHLMC	Federal Home Loan Mortgage Corp.
GMTN	Global Medium Term Note
MBIA	Municipal Bond Investors Assurance Corp.
MTN	Medium Term Note
REITs	Real Estate Investment Trusts
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
ISK	Icelandic Krona
KRW	South Korean Won
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar
SGD	Singapore Dollar

See accompanying notes to financial statements.

|  36

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Bond Fund – continued

Industry Summary at September 30, 2010 (Unaudited)

Treasuries	19.5	%
Non-Captive Diversified	7.1
Sovereigns	6.7
Banking	6.5
Technology	5.0
Automotive	4.8
Non-Captive Consumer	4.3
Wirelines	4.1
Electric	3.1
Paper	2.7
Healthcare	2.5
Airlines	2.1
Pipelines	2.1
Other Investments, less than 2% each	27.0
Short-Term Investments	1.1
Total Investments	98.6
Other assets less liabilities	1.4
Net Assets	100.0	%

Currency Exposure at September 30, 2010 as a Percentage of Net Assets (Unaudited)

United States Dollar	63.6	%
Canadian Dollar	16.4
New Zealand Dollar	3.9
Norwegian Krone	3.3
Indonesian Rupiah	2.5
Euro	2.1
Other, less than 2% each	6.8
Total Investments	98.6
Other assets less liabilities	1.4
Net Assets	100.0	%

See accompanying notes to financial statements.

37  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – 92.7% of Net Assets
	Non-Convertible Bonds – 85.4%
		ABS Other – 0.1%
$	725,000	Community Program Loan Trust, Series 1987-A, Class A5, 4.500%, 4/01/2029	$	697,660
		Aerospace & Defense – 0.0%
	175,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		166,250
		Airlines – 0.7%
	6,244	American Airlines Pass Through Trust, Series 1993-A6, 8.040%, 9/16/2011		6,244
	981,318	American Airlines Pass Through Trust, Series 2009-1A, 10.375%, 1/02/2021		1,157,956
	363,032	Continental Airlines Pass Through Trust, Series 1997-1, Class A, 7.461%, 10/01/2016		372,108
	108,129	Continental Airlines Pass Through Trust, Series 2000-2, Class B, 8.307%, 10/02/2019		109,210
	180,674	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		176,157
	548,000	Delta Air Lines, Inc., 9.500%, 9/15/2014, 144A		594,580
	1,493,468	Delta Air Lines, Inc., Series 2007-1, Class C, 8.954%, 8/10/2014		1,519,604
	475,119	Delta Air Lines, Inc., Series B, 9.750%, 12/17/2016		508,378
	1,125,155	UAL Pass Through Trust, Series 2007-1, Class A, 6.636%, 1/02/2024		1,122,342
				5,566,579
		Automotive – 3.6%
	2,400,000	Cummins, Inc., 7.125%, 3/01/2028		2,705,748
	50,000	FCE Bank PLC, EMTN, 4.625%, 10/25/2010, (NOK)		8,471
	300,000	FCE Bank PLC, EMTN, 7.125%, 1/16/2012, (EUR)		422,267
	200,000	FCE Bank PLC, EMTN, 7.125%, 1/15/2013, (EUR)		283,556
	300,000	FCE Bank PLC, EMTN, 7.875%, 2/15/2011, (GBP)		476,595
	765,000	Ford Motor Co., 6.375%, 2/01/2029		707,625
	1,030,000	Ford Motor Co., 6.500%, 8/01/2018		1,048,025
	165,000	Ford Motor Co., 6.625%, 2/15/2028		156,338
	4,230,000	Ford Motor Co., 6.625%, 10/01/2028		4,007,925
	690,000	Ford Motor Co., 7.125%, 11/15/2025		674,475
	9,250,000	Ford Motor Co., 7.450%, 7/16/2031		9,643,125

Principal Amount (‡)		Description	Value (†)
		Automotive – continued
$	1,645,000	Ford Motor Co., 7.500%, 8/01/2026	$	1,645,000
	645,000	Ford Motor Credit Co. LLC, 7.000%, 4/15/2015		689,234
	5,225,000	Ford Motor Credit Co. LLC, 8.000%, 6/01/2014		5,713,652
	565,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		638,660
	375,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		345,000
				29,165,696
		Banking – 6.4%
	4,150,000	AgriBank FCB, 9.125%, 7/15/2019, 144A(b)		5,147,386
	1,710,000	Associates Corp. of North America, 6.950%, 11/01/2018		1,887,758
	2,385,000	BAC Capital Trust VI, 5.625%, 3/08/2035		2,241,957
	500,000	Bank of America Corp., 4.850%, 11/15/2014		501,012
	2,420,000,000	Barclays Bank PLC, EMTN, 3.680%, 8/20/2015, (KRW)		2,133,596
	18,710,000,000	BNP Paribas SA, EMTN, Zero Coupon, 6/13/2011, 144A, (IDR)		2,012,504
	6,020,000	Citigroup, Inc., 5.000%, 9/15/2014		6,252,613
	135,000	Citigroup, Inc., 5.850%, 12/11/2034		136,034
	3,075,000	Citigroup, Inc., 5.875%, 2/22/2033		2,943,947
	1,460,000	Citigroup, Inc., 6.000%, 10/31/2033		1,408,440
	795,000	Citigroup, Inc., 6.125%, 8/25/2036		774,317
	200,000	Citigroup, Inc., EMTN, (fixed rate to 11/30/2012, variable rate thereafter), 3.625%, 11/30/2017, (EUR)		261,257
	1,470,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		1,527,955
	1,955,000	Goldman Sachs Group, Inc. (The), GMTN, 5.375%, 3/15/2020		2,060,593
	17,920,000,000	JPMorgan Chase & Co., Zero Coupon, 3/28/2011, 144A, (IDR)		1,956,242
	21,194,634,240	JPMorgan Chase & Co., Zero Coupon, 4/12/2012, 144A, (IDR)		2,172,183
	24,502,029,000	JPMorgan Chase & Co., EMTN, Zero Coupon, 3/28/2011, 144A, (IDR)		2,674,770
	18,824,303,000	JPMorgan Chase London, EMTN, Zero Coupon, 10/21/2010, 144A, (IDR)		2,099,042
	600,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		586,632

See accompanying notes to financial statements.

|  38

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Banking – continued
	1,000,000	Merrill Lynch & Co., Inc., EMTN, 4.625%, 9/14/2018, (EUR)	$	1,330,737
	300,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		308,125
	1,795,000	Morgan Stanley, 4.750%, 4/01/2014		1,874,640
	6,200,000	Morgan Stanley, 5.500%, 7/24/2020		6,387,352
	370,000	Morgan Stanley, EMTN, 5.450%, 1/09/2017		390,204
	350,000	Morgan Stanley, GMTN, 5.125%, 11/30/2015, (GBP)		567,599
	800,000	Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		847,718
	625,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		671,360
				51,155,973
		Building Materials – 1.0%
	860,000	Masco Corp., 4.800%, 6/15/2015		845,728
	240,000	Masco Corp., 5.850%, 3/15/2017		234,809
	2,600,000	Masco Corp., 6.125%, 10/03/2016		2,643,212
	305,000	Masco Corp., 6.500%, 8/15/2032		261,760
	805,000	Owens Corning, Inc., 6.500%, 12/01/2016		870,909
	2,050,000	Owens Corning, Inc., 7.000%, 12/01/2036		2,064,485
	1,680,000	USG Corp., 6.300%, 11/15/2016		1,457,400
				8,378,303
		Chemicals – 1.5%
	5,240,000	Borden, Inc., 7.875%, 2/15/2023		3,982,400
	55,000	Borden, Inc., 8.375%, 4/15/2016		46,750
	905,000	Borden, Inc., 9.200%, 3/15/2021		751,150
	3,440,000	Chevron Phillips Chemical Co. LLC, 8.250%, 6/15/2019, 144A		4,353,716
	1,255,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 9.750%, 11/15/2014		1,305,200
	115,000	ICI Wilmington, Inc., 5.625%, 12/01/2013		127,952
	1,565,000	Methanex Corp., Senior Note, 6.000%, 8/15/2015		1,548,218
				12,115,386
		Collateralized Mortgage Obligation – 0.2%
	1,288,743	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR4, Class 2A2, 2.954%, 4/25/2035(c)		1,230,451

Principal Amount (‡)		Description	Value (†)
		Commercial Mortgage-Backed Securities – 0.1%
$	95,000	GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, 4.751%, 7/10/2039	$	102,151
	1,000,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051		1,003,316
				1,105,467
		Construction Machinery – 0.4%
	965,000	Toro Co., 6.625%, 5/01/2037(b)		957,190
	295,000	United Rentals North America, Inc., 7.000%, 2/15/2014		295,000
	1,800,000	United Rentals North America, Inc., 7.750%, 11/15/2013		1,822,500
				3,074,690
		Distributors – 0.1%
	1,000,000	ONEOK, Inc., 6.000%, 6/15/2035		1,034,266
		Diversified Manufacturing – 0.2%
	245,000	Textron, Inc., 5.600%, 12/01/2017		264,694
	1,290,000	Textron, Inc., 7.250%, 10/01/2019		1,527,860
				1,792,554
		Electric – 4.2%
	730,000	AES Corp. (The), 7.750%, 3/01/2014		781,100
	3,100,000	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		3,280,668
	4,174,607	Bruce Mansfield Unit, 6.850%, 6/01/2034(b)		4,652,439
	380,000	Dynegy Holdings, Inc., 7.125%, 5/15/2018		259,350
	810,000	Dynegy Holdings, Inc., 7.625%, 10/15/2026		488,025
	1,589,000	Empresa Nacional de Electricidad SA (Endesa-Chile), 7.875%, 2/01/2027		1,826,128
	2,890,000	Energy Future Holdings Corp., 10.000%, 1/15/2020, 144A		2,869,076
	275,000	Enersis SA, 7.375%, 1/15/2014		311,107
	4,000,000	Enersis SA, Cayman Islands, 7.400%, 12/01/2016		4,726,424
	3,669,246	Mackinaw Power LLC, 6.296%, 10/31/2023, 144A		3,968,106
	695,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027(b)		333,600
	250,000	NiSource Finance Corp., 5.250%, 9/15/2017		273,410
	850,000	NiSource Finance Corp., 6.150%, 3/01/2013		933,868
	2,855,000	NiSource Finance Corp., 6.400%, 3/15/2018		3,311,078
	360,905	Power Receivables Finance LLC, 6.290%, 1/01/2012, 144A		360,912

See accompanying notes to financial statements.

39  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Electric – continued
$	1,155,700	Quezon Power Philippines Co., 8.860%, 6/15/2017	$	1,196,149
	765,000	TXU Corp., Series P, 5.550%, 11/15/2014		409,275
	1,515,000	TXU Corp., Series Q, 6.500%, 11/15/2024		579,487
	1,675,000	TXU Corp., Series R, 6.550%, 11/15/2034		636,500
	450,000	White Pine Hydro LLC, 6.310%, 7/10/2017(b)		472,892
	670,000	White Pine Hydro LLC, 6.960%, 7/10/2037(b)		674,777
	1,280,000	White Pine Hydro Portfolio LLC, 7.260%, 7/20/2015(b)		1,161,856
				33,506,227
		Entertainment – 0.6%
	2,065,000	Time Warner, Inc., 6.625%, 5/15/2029		2,339,075
	730,000	Time Warner, Inc., 7.625%, 4/15/2031		905,083
	1,155,000	Time Warner, Inc., 7.700%, 5/01/2032		1,443,311
				4,687,469
		Food & Beverage – 0.2%
	1,540,000	Corn Products International, Inc., 6.625%, 4/15/2037		1,682,150
		Government Owned-No Guarantee – 0.3%
	2,400,000	DP World Ltd., 6.850%, 7/02/2037, 144A		2,244,691
		Health Insurance – 0.3%
	2,000,000	CIGNA Corp., 6.350%, 3/15/2018		2,351,588
		Healthcare – 2.7%
	425,000	Boston Scientific Corp., 5.125%, 1/12/2017		429,322
	290,000	Boston Scientific Corp., 5.450%, 6/15/2014		307,825
	435,000	Boston Scientific Corp., 6.400%, 6/15/2016		472,872
	860,000	Boston Scientific Corp., 7.000%, 11/15/2035		869,078
	455,000	HCA, Inc., 5.750%, 3/15/2014		448,744
	2,345,000	HCA, Inc., 6.250%, 2/15/2013		2,386,037
	410,000	HCA, Inc., 6.375%, 1/15/2015		408,975
	610,000	HCA, Inc., 6.500%, 2/15/2016		610,000
	115,000	HCA, Inc., 6.750%, 7/15/2013		117,300
	3,545,000	HCA, Inc., 7.050%, 12/01/2027		3,119,600
	820,000	HCA, Inc., 7.190%, 11/15/2015		803,600
	1,475,000	HCA, Inc., 7.500%, 12/15/2023		1,386,500

Principal Amount (‡)		Description	Value (†)
		Healthcare – continued
$	1,440,000	HCA, Inc., 7.500%, 11/06/2033	$	1,321,200
	2,660,000	HCA, Inc., 7.690%, 6/15/2025		2,487,100
	2,220,000	HCA, Inc., 8.360%, 4/15/2024		2,175,600
	2,930,000	HCA, Inc., MTN, 7.580%, 9/15/2025		2,724,900
	430,000	HCA, Inc., MTN, 7.750%, 7/15/2036		395,600
	320,000	Owens & Minor, Inc., 6.350%, 4/15/2016(b)		326,640
	1,075,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		870,750
				21,661,643
		Home Construction – 1.0%
	115,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016		74,750
	155,000	K. Hovnanian Enterprises, Inc., 6.375%, 12/15/2014		111,600
	115,000	K. Hovnanian Enterprises, Inc., 6.500%, 1/15/2014		86,250
	1,700,000	Lennar Corp., Series B, 5.600%, 5/31/2015		1,602,250
	1,152,000	Pulte Group, Inc., 5.200%, 2/15/2015		1,114,560
	3,920,000	Pulte Group, Inc., 6.000%, 2/15/2035		2,940,000
	1,960,000	Pulte Group, Inc., 6.375%, 5/15/2033		1,568,000
	565,000	Toll Brothers Finance Corp., 5.150%, 5/15/2015		570,969
				8,068,379
		Independent Energy – 1.7%
	3,230,000	Anadarko Petroleum Corp., 5.950%, 9/15/2016		3,526,931
	1,915,000	Anadarko Petroleum Corp., 6.375%, 9/15/2017		2,110,244
	2,845,000	Anadarko Petroleum Corp., 6.450%, 9/15/2036		2,848,422
	380,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		394,250
	900,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		954,000
	792,000	Connacher Oil and Gas Ltd., 10.250%, 12/15/2015, 144A		803,880
	525,000	Connacher Oil and Gas Ltd., 11.750%, 7/15/2014, 144A		572,250
	1,465,000	Pioneer Natural Resources Co., 7.200%, 1/15/2028		1,510,544
	741,000	Williams Cos., Inc. (The), Series A, 7.500%, 1/15/2031		838,413
				13,558,934
		Industrial Other – 0.2%
	1,575,000	Ranhill Labuan Ltd., 12.500%, 10/26/2011, 144A		1,417,500
		Integrated Energy – 0.1%
	958,249	PF Export Receivables Master Trust, Series A, 6.436%, 6/01/2015, 144A		1,025,326

See accompanying notes to financial statements.

|  40

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Life Insurance – 1.1%
$	615,000	American International Group, Inc., Series G, MTN, 5.850%, 1/16/2018	$	636,525
	175,000	American International Group, Inc., Series MP, GMTN, 5.450%, 5/18/2017		178,063
	500,000	Hartford Life Insurance Co., 3.440%, 9/15/2011(c)		496,150
	1,000,000	MetLife, Inc., 6.400%, 12/15/2066		935,000
	3,385,000	MetLife, Inc., 10.750%, 8/01/2069		4,392,037
	1,165,000	Penn Mutual Life Insurance Co. (The), 6.650%, 6/15/2034, 144A		1,056,050
	1,000,000	Protective Life Secured Trust, 2.970%, 9/10/2014(c)		1,005,380
				8,699,205
		Local Authorities – 4.3%
	723,595	Province of Alberta, 5.930%, 9/16/2016, (CAD)		802,312
	11,700,000	Province of British Columbia, Zero Coupon, 8/23/2013, (CAD)		10,746,170
	19,825,000	Province of Ontario, 4.200%, 3/08/2018, (CAD)		20,669,330
	2,150,000	Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011, (AUD)		2,094,582
				34,312,394
		Lodging – 0.0%
	150,000	Host Marriott LP, Series O, 6.375%, 3/15/2015		153,563
		Media Cable – 1.3%
	765,000	Comcast Corp., 5.650%, 6/15/2035		772,266
	350,000	Comcast Corp., 6.500%, 11/15/2035		391,252
	26,000	CSC Holdings LLC, 6.750%, 4/15/2012		27,203
	170,000	CSC Holdings LLC, 7.875%, 2/15/2018		185,513
	1,500,000	Time Warner Cable, Inc., 6.550%, 5/01/2037		1,691,671
	6,500,000	Time Warner Cable, Inc., 6.750%, 7/01/2018		7,752,140
				10,820,045
		Media Non-Cable – 1.1%
	810,000	Clear Channel Communications, Inc., 4.400%, 5/15/2011		788,738
	2,190,000	Clear Channel Communications, Inc., 5.000%, 3/15/2012		2,069,550
	3,385,000	Clear Channel Communications, Inc., 6.250%, 3/15/2011		3,359,612
	2,630,000	News America, Inc., 6.150%, 3/01/2037		2,831,855
				9,049,755

Principal Amount (‡)		Description	Value (†)
		Metals & Mining – 0.2%
$	1,500,000	Alcoa, Inc., 5.720%, 2/23/2019	$	1,524,845
	300,000	Alcoa, Inc., 5.870%, 2/23/2022		295,096
				1,819,941
		Non-Captive Consumer – 3.2%
	300,000	American General Finance Corp., MTN, 5.750%, 9/15/2016		239,250
	300,000	American General Finance Corp., MTN, 5.900%, 9/15/2012		286,500
	800,000	American General Finance Corp., Series H, MTN, 5.375%, 10/01/2012		757,000
	700,000	American General Finance Corp., Series I, MTN, 4.875%, 7/15/2012		661,500
	200,000	American General Finance Corp., Series I, MTN, 5.400%, 12/01/2015		161,000
	1,200,000	American General Finance Corp., Series I, MTN, 5.850%, 6/01/2013		1,107,000
	2,100,000	American General Finance Corp., Series J, MTN, 6.500%, 9/15/2017		1,659,000
	2,800,000	American General Finance Corp., Series J, MTN, 6.900%, 12/15/2017		2,338,000
	3,905,000	Residential Capital LLC, 9.625%, 5/15/2015		3,934,288
	31,725(††)	SLM Corp., 6.000%, 12/15/2043		613,482
	760,000	SLM Corp., MTN, 5.125%, 8/27/2012		768,305
	1,665,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		1,631,673
	200,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		191,733
	145,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		115,639
	2,920,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		2,943,810
	235,000	SLM Corp., Series A, MTN, 5.375%, 5/15/2014		228,670
	405,000	SLM Corp., Series A, MTN, 5.400%, 10/25/2011		409,188
	7,986,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		8,066,371
				26,112,409
		Non-Captive Diversified – 6.0%
	1,305,000	Ally Financial, Inc., 6.000%, 12/15/2011		1,332,731
	224,000	Ally Financial, Inc., 6.875%, 8/28/2012		233,800
	682,000	Ally Financial, Inc., 7.500%, 12/31/2013		724,625
	2,275,000	Ally Financial, Inc., 7.500%, 9/15/2020, 144A		2,422,875

See accompanying notes to financial statements.

41  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Non-Captive Diversified – continued
$	1,460,000	Ally Financial, Inc., 8.000%, 12/31/2018	$	1,500,150
	181,000	Ally Financial, Inc., 8.000%, 11/01/2031		194,123
	6,055,000	Ally Financial, Inc., 8.300%, 2/12/2015, 144A		6,599,950
	870,554	CIT Group, Inc., 7.000%, 5/01/2013		874,907
	1,305,836	CIT Group, Inc., 7.000%, 5/01/2014		1,302,571
	1,305,836	CIT Group, Inc., 7.000%, 5/01/2015		1,296,042
	2,176,397	CIT Group, Inc., 7.000%, 5/01/2016		2,143,751
	3,046,961	CIT Group, Inc., 7.000%, 5/01/2017		2,982,213
	830,000	General Electric Capital Australia Funding Pty Ltd., EMTN, 8.000%, 2/13/2012, (AUD)		822,126
	35,000	General Electric Capital Corp., 5.625%, 5/01/2018		38,849
	170,000	General Electric Capital Corp., MTN, 5.875%, 1/14/2038		172,655
	1,345,000	General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)		1,027,089
	5,360,000	General Electric Capital Corp., Series A, GMTN, 7.625%, 12/10/2014, (NZD)		4,194,746
	1,145,000	General Electric Capital Corp., Series A, MTN, 4.875%, 3/04/2015		1,257,358
	9,210,000	General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		6,971,437
	4,905,000	International Lease Finance Corp., 7.125%, 9/01/2018, 144A		5,285,137
	3,045,000	International Lease Finance Corp., 8.625%, 9/15/2015, 144A		3,258,150
	85,000	iStar Financial, Inc., 5.500%, 6/15/2012		71,400
	135,000	iStar Financial, Inc., 5.650%, 9/15/2011		122,175
	30,000	iStar Financial, Inc., 5.875%, 3/15/2016		22,688
	30,000	iStar Financial, Inc., 6.050%, 4/15/2015		22,800
	2,495,000	iStar Financial, Inc., 8.625%, 6/01/2013		2,033,425
	95,000	iStar Financial, Inc., Series B, 5.700%, 3/01/2014		73,744
	1,245,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		986,662
				47,968,179
		Oil Field Services – 0.2%
	420,000	Allis-Chalmers Energy, Inc., 8.500%, 3/01/2017		422,100

Principal Amount (‡)		Description	Value (†)
		Oil Field Services – continued
$	490,000	Allis-Chalmers Energy, Inc., 9.000%, 1/15/2014	$	494,900
	235,000	Parker Drilling Co., 9.125%, 4/01/2018, 144A		238,525
				1,155,525
		Packaging – 0.3%
	2,000,000	Owens-Illinois, Inc., 7.800%, 5/15/2018		2,145,000
		Paper – 1.7%
	2,000,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		2,055,000
	2,868,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		2,968,380
	6,005,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		6,305,250
	132,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		148,170
	1,045,000	Westvaco Corp., 7.950%, 2/15/2031		1,128,209
	1,080,000	Westvaco Corp., 8.200%, 1/15/2030		1,181,204
				13,786,213
		Pharmaceuticals – 0.1%
	335,000	Elan Finance PLC/Elan Finance Corp., 8.875%, 12/01/2013		343,375
		Pipelines – 1.4%
	1,740,000	DCP Midstream LP, 6.450%, 11/03/2036, 144A		1,893,962
	925,000	El Paso Corp., 6.950%, 6/01/2028		872,257
	250,000	El Paso Corp., GMTN, 7.800%, 8/01/2031		259,467
	1,550,000	Enterprise Products Operating LLP, 6.300%, 9/15/2017		1,787,773
	300,000	Florida Gas Transmission Co., 7.900%, 5/15/2019, 144A		376,528
	1,785,000	Plains All American Pipeline LP, 6.125%, 1/15/2017		1,994,104
	3,850,000	Plains All American Pipeline LP, 6.650%, 1/15/2037		4,173,019
				11,357,110
		Property & Casualty Insurance – 1.1%
	80,000	Axis Capital Holdings Ltd., 5.750%, 12/01/2014		85,284
	2,645,000	Hanover Insurance Group, Inc. (The), 7.500%, 3/01/2020		2,943,510
	180,000	Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033		175,027
	1,545,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A		695,250
	2,140,000	White Mountains RE Group Ltd., 6.375%, 3/20/2017, 144A		2,163,341
	1,430,000	XL Group PLC, 6.250%, 5/15/2027		1,438,707

See accompanying notes to financial statements.

|  42

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Property & Casualty Insurance – continued
$	1,135,000	XL Group PLC, 6.375%, 11/15/2024	$	1,179,434
				8,680,553
		Railroads – 0.1%
	500,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(b)		362,950
		REITs – 0.4%
	2,960,000	WEA Finance LLC/WT Finance Australia Property Ltd., 6.750%, 9/02/2019, 144A		3,507,032
		REITs – Apartments – 0.2%
	1,495,000	Camden Property Trust, 5.700%, 5/15/2017		1,587,265
	70,000	ERP Operating LP, 5.125%, 3/15/2016		76,647
				1,663,912
		REITs – Diversified – 0.0%
	210,000	Duke Realty LP, 5.950%, 2/15/2017		225,308
		REITs – Industrials – 0.0%
	100,000	ProLogis, 5.625%, 11/15/2015		97,831
	80,000	ProLogis, 5.750%, 4/01/2016		78,978
				176,809
		REITs – Office – 0.5%
	3,485,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		3,584,451
	475,000	Highwoods Properties, Inc., 7.500%, 4/15/2018		531,917
				4,116,368
		REITs – Regional Malls – 0.1%
	200,000	Simon Property Group LP, 5.875%, 3/01/2017		229,745
	290,000	Simon Property Group LP, 6.100%, 5/01/2016		336,955
				566,700
		REITs – Triple Net Lease – 0.1%
	185,000	Realty Income Corp., 5.750%, 1/15/2021		196,115
	815,000	Realty Income Corp., 6.750%, 8/15/2019		934,255
				1,130,370
		Restaurants – 0.1%
	1,000,000	McDonald’s Corp., EMTN, 3.628%, 10/10/2010, (SGD)		760,657
		Retailers – 0.9%
	1,025,000	Dillard’s, Inc., 7.750%, 7/15/2026		937,875
	1,100,000	Foot Locker, Inc., 8.500%, 1/15/2022		1,036,750

Principal Amount (‡)		Description	Value (†)
		Retailers – continued
$	1,079,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036	$	1,041,235
	575,000	J.C. Penney Corp., Inc., 7.125%, 11/15/2023		600,875
	3,240,000	Toys R Us, Inc., 7.375%, 10/15/2018		3,094,200
	750,000	Toys R Us, Inc., 7.875%, 4/15/2013		781,875
				7,492,810
		Sovereigns – 6.6%
	2,915,000,000	Indonesia Treasury Bond, Series FR43, 10.250%, 7/15/2022, (IDR)		384,515
	33,387,000,000	Indonesia Treasury Bond, Series FR44, 10.000%, 9/15/2024, (IDR)		4,337,246
	7,590,000,000	Indonesia Treasury Bond, Series ZC3, Zero Coupon, 11/20/2012, (IDR)		743,124
	6,675,000	Ireland Government Bond, 4.500%, 10/18/2018, (EUR)		7,998,633
	375,000	Ireland Government Bond, 5.000%, 10/18/2020, (EUR)		449,131
	1,800,000	Ireland Government Bond, 5.400%, 3/13/2025, (EUR)		2,118,409
	578,000(†††)	Mexican Fixed Rate Bonds, Series M-10, 7.250%, 12/15/2016, (MXN)		4,920,154
	125,000(†††)	Mexican Fixed Rate Bonds, Series M-10, 8.000%, 12/17/2015, (MXN)		1,093,210
	305,000(†††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		2,752,628
	501,000(†††)	Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012, (MXN)		4,287,521
	3,240,000	New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010, (AUD)		3,141,795
	845,000	New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012, (AUD)		828,770
	4,280,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		4,174,552
	1,500,000	Portugal Obrigacoes do Tesouro OT, 3.850%, 4/15/2021, (EUR)		1,660,643
	375,000	Portugal Obrigacoes do Tesouro OT, 4.800%, 6/15/2020, (EUR)		456,073
	14,885,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		9,822,165
	625,000	Republic of Brazil, 12.500%, 1/05/2022, (BRL)		453,421
	212,600,000	Republic of Iceland, 7.250%, 5/17/2013, (ISK)		1,136,511
	239,270,000	Republic of Iceland, 8.000%, 7/22/2011, (ISK)		1,219,289

See accompanying notes to financial statements.

43  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Sovereigns – continued
	250,845,000	Republic of Iceland, 13.750%, 12/10/2010, (ISK)	$	1,265,357
				53,243,147
		Supermarkets – 1.0%
	25,000	American Stores Co., 8.000%, 6/01/2026		21,031
	6,515,000	New Albertson’s, Inc., 7.450%, 8/01/2029		5,277,150
	1,470,000	New Albertson’s, Inc., 7.750%, 6/15/2026		1,245,825
	565,000	New Albertson’s, Inc., 8.000%, 5/01/2031		460,475
	5,000	New Albertson’s, Inc., 8.700%, 5/01/2030		4,400
	1,745,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		1,276,032
				8,284,913
		Supranational – 3.5%
	19,735,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		15,435,336
	17,000,000	International Bank for Reconstruction & Development, 1.430%, 3/05/2014, (SGD)		13,008,626
				28,443,962
		Technology – 2.2%
	5,215,000	Agilent Technologies, Inc., 6.500%, 11/01/2017		6,007,137
	250,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		181,875
	2,850,000	Arrow Electronics, Inc., 6.875%, 7/01/2013		3,179,124
	1,645,000	Avnet, Inc., 6.000%, 9/01/2015		1,814,024
	130,000	Avnet, Inc., 6.625%, 9/15/2016		149,102
	450,000	Corning, Inc., 6.850%, 3/01/2029		517,456
	1,175,000	Corning, Inc., 7.250%, 8/15/2036		1,347,455
	740,000	Freescale Semiconductor, Inc., 8.875%, 12/15/2014		739,075
	815,000	Motorola, Inc., 6.500%, 11/15/2028		865,338
	995,000	Motorola, Inc., 6.625%, 11/15/2037		1,064,031
	150,000	Nortel Networks Capital Corp., 7.875%, 6/15/2026(d)		97,500
	1,325,000	Nortel Networks Ltd., 6.875%, 9/01/2023(d)		364,375
	1,042,200	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		1,237,002
				17,563,494

Principal Amount (‡)		Description	Value (†)
		Tobacco – 0.6%
$	3,320,000	Reynolds American, Inc., 6.750%, 6/15/2017	$	3,734,060
	810,000	Reynolds American, Inc., 7.250%, 6/15/2037		850,372
				4,584,432
		Transportation Services – 0.5%
	2,500,000	APL Ltd., 8.000%, 1/15/2024(b)		1,712,500
	1,112,384	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 7/02/2015		1,056,765
	1,018,077	Atlas Air Pass Through Trust, Series 1999-1, Class B, 7.630%, 7/02/2016		875,546
	327,733	Atlas Air Pass Through Trust, Series 2000-1, Class B, 10.128%, 7/02/2017		321,179
				3,965,990
		Treasuries – 17.1%
	920,000	Canadian Government, 1.000%, 9/01/2011, (CAD)		892,040
	8,525,000	Canadian Government, 1.250%, 12/01/2011, (CAD)		8,282,896
	19,910,000	Canadian Government, 2.000%, 9/01/2012, (CAD)		19,579,682
	12,760,000	Canadian Government, 2.750%, 12/01/2010, (CAD)		12,438,675
	2,860,000	Canadian Government, 3.500%, 6/01/2013, (CAD)		2,924,127
	18,145,000	Canadian Government, 3.750%, 9/01/2011, (CAD)		18,030,370
	14,255,000	Canadian Government, 3.750%, 6/01/2012, (CAD)		14,404,353
	7,385,000	Canadian Government, 3.750%, 6/01/2019, (CAD)		7,777,900
	9,615,000	Canadian Government, 4.250%, 6/01/2018, (CAD)		10,485,107
	22,355,000	Canadian Government, 5.250%, 6/01/2012, (CAD)		23,123,704
	261,645	Hellenic Republic Government Bond, 2.300%, 7/25/2030, (EUR)		174,001
	5,520,000	New Zealand Government Bond, 6.500%, 4/15/2013, (NZD)		4,309,387
	56,415,000	Norwegian Government, 4.250%, 5/19/2017, (NOK)		10,375,328
	9,425,000	Norwegian Government, 5.000%, 5/15/2015, (NOK)		1,767,675
	11,705,000	Norwegian Government, 6.000%, 5/16/2011, (NOK)		2,032,636
	8,410,000	Norwegian Government, 6.500%, 5/15/2013, (NOK)		1,576,452
				138,174,333
		Utility Other – 0.0%
	200,000	Listrindo Capital BV, 9.250%, 1/29/2015, 144A		226,870
		Wireless – 1.3%
	4,585,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		4,607,925

See accompanying notes to financial statements.

|  44

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Wireless – continued
$	215,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013	$	216,344
	1,745,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		1,736,275
	1,262,000	Sprint Capital Corp., 6.875%, 11/15/2028		1,154,730
	1,400,000	Sprint Capital Corp., 6.900%, 5/01/2019		1,407,000
	300,000	Sprint Capital Corp., 8.750%, 3/15/2032		315,000
	898,000	Sprint Nextel Corp., 6.000%, 12/01/2016		886,775
				10,324,049
		Wirelines – 2.6%
	355,000	AT&T Corp., 6.500%, 3/15/2029		396,331
	355,000	Axtel SAB de CV, 9.000%, 9/22/2019, 144A		327,487
	195,000	Bell Canada, MTN, 6.550%, 5/01/2029, 144A, (CAD)		204,220
	690,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		781,191
	600,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		609,050
	235,000	Embarq Corp., 7.082%, 6/01/2016		261,180
	200,000	Embarq Corp., 7.995%, 6/01/2036		212,646
	350,000	GTE Corp., 6.940%, 4/15/2028		404,585
	75,000	Hawaiian Telcom Communications, Inc., Series B, 12.500%, 5/01/2015(d)		8
	500,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		470,000
	3,305,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		3,305,000
	7,205,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		6,772,700
	350,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		353,500
	775,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		782,750
	790,000	Qwest Corp., 6.875%, 9/15/2033		780,125
	1,780,000	Qwest Corp., 7.200%, 11/10/2026		1,780,000
	1,220,000	Qwest Corp., 7.250%, 9/15/2025		1,281,000
	1,330,000	Telecom Italia Capital SA, 6.000%, 9/30/2034		1,254,653
	1,320,000	Telecom Italia Capital SA, 6.375%, 11/15/2033		1,302,150
				21,278,576
		Total Non-Convertible Bonds
		(Identified Cost $615,757,632)		688,183,131

Principal Amount (‡)		Description	Value (†)
	Convertible Bonds – 6.4%
		Airlines – 0.5%
$	4,395,000	AMR Corp., 6.250%, 10/15/2014	$	4,274,138
		Automotive – 0.5%
	2,925,000	Ford Motor Co., 4.250%, 11/15/2016		4,365,562
		Construction Machinery – 0.0%
	50,000	United Rentals North America, Inc., 1.875%, 10/15/2023		49,750
		Diversified Manufacturing – 0.7%
	5,310,000	Owens-Brockway Glass Container, Inc., 3.000%, 6/01/2015, 144A		5,203,800
		Electric – 0.1%
	500,000	CMS Energy Corp., 5.500%, 6/15/2029		670,625
		Lodging – 0.2%
	1,430,000	Host Hotels & Resorts, Inc., 2.625%, 4/15/2027, 144A		1,394,250
		Media Non-Cable – 0.0%
	449,013	Liberty Media LLC, 3.500%, 1/15/2031		239,100
		Metals & Mining – 0.3%
	235,000	Steel Dynamics, Inc., 5.125%, 6/15/2014		265,844
	1,540,000	United States Steel Corp., 4.000%, 5/15/2014		2,375,450
				2,641,294
		Non-Captive Diversified – 0.0%
	380,000	iStar Financial, Inc., 1.033%, 10/01/2012(c)		289,750
		Pharmaceuticals – 0.5%
	175,000	Human Genome Sciences, Inc., 2.250%, 10/15/2011		349,781
	205,000	Human Genome Sciences, Inc., 2.250%, 8/15/2012		375,919
	1,065,000	Nektar Therapeutics, 3.250%, 9/28/2012		1,083,637
	1,095,000	Valeant Pharmaceuticals International, 4.000%, 11/15/2013		2,092,819
				3,902,156
		REITs – Industrials – 0.3%
	2,505,000	ProLogis, 1.875%, 11/15/2037		2,348,438
		Technology – 2.5%
	1,132,000	Advanced Micro Devices, Inc., 6.000%, 5/01/2015		1,113,605
	5,000	Alcatel-Lucent USA, Inc., Series B, 2.875%, 6/15/2025		4,531
	6,591,000	Intel Corp., 2.950%, 12/15/2035		6,516,852
	7,000,000	Intel Corp., 3.250%, 8/01/2039		8,172,500

See accompanying notes to financial statements.

45  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Technology – continued
$	3,585,000	Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012	$	3,356,456
	520,000	Micron Technology, Inc., 1.875%, 6/01/2014		462,150
	248,000	Nortel Networks Corp., 2.125%, 4/15/2014(d)		190,960
				19,817,054
		Textile – 0.0%
	52,000	Dixie Yarns, Inc., 7.000%, 5/15/2012		48,880
		Wirelines – 0.8%
	1,930,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		1,826,262
	3,040,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(b)		2,709,400
	1,990,000	Level 3 Communications, Inc., Series B, 7.000%, 3/15/2015(b)		1,773,587
	250,000	Qwest Communications International, Inc., 3.500%, 11/15/2025		327,813
				6,637,062
		Total Convertible Bonds
		(Identified Cost $46,268,419)		51,881,859
	Municipals – 0.9%
		Michigan – 0.2%
	2,405,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034(b)		1,909,762
		Virginia – 0.7%
	7,725,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(b)		5,348,790
		Total Municipals
		(Identified Cost $10,110,680)		7,258,552
		Total Bonds and Notes
		(Identified Cost $672,136,731)		747,323,542
	Bank Loans – 0.2%
		Media Non-Cable – 0.0%
	74,971	Tribune Company, Term Loan X, 5.000%, 6/04/2009(d)(e)(f)		47,513
		Printing & Publishing – 0.1%
	592,513	SuperMedia, Inc., Exit Term Loan, 11.000%, 12/31/2015(e)		461,864
		Wirelines – 0.1%
	493,152	Hawaiian Telcom Communications, Inc., New Tranche C Term Loan, 4.750%, 5/30/2014(e)(g)		376,028

Principal Amount (‡)		Description	Value (†)
		Wirelines – continued
$	345,000	Level 3 Financing, Inc., Tranche A Term Loan, 2.700%, 3/13/2014(e)	$	314,319
				690,347
		Total Bank Loans
		(Identified Cost $1,351,285)		1,199,724
	Shares
	Preferred Stocks – 2.6%
	Convertible Preferred Stocks – 1.9%
		Automotive – 0.5%
	85,817	Ford Motor Co. Capital Trust II, 6.500%		4,111,492
		Capital Markets – 0.1%
	25,075	Newell Financial Trust I, 5.250%		992,030
		Diversified Financial Services – 0.6%
	2,844	Bank of America Corp., Series L, 7.250%		2,790,675
	55,343	Sovereign Capital Trust IV, 4.375%		2,047,691
				4,838,366
		Electric Utilities – 0.1%
	10,000	AES Trust III, 6.750%		488,125
		Machinery – 0.1%
	30,199	United Rentals Trust I, 6.500%		1,011,667
		Oil, Gas & Consumable Fuels – 0.1%
	775	Chesapeake Energy Corp., 4.500%		66,650
	25,200	El Paso Energy Capital Trust I, 4.750%		963,900
				1,030,550
		REITs – Hotels – 0.0%
	2,500	FelCor Lodging Trust, Inc., Series A, 7.800%(h)		53,625
		Semiconductors & Semiconductor Equipment – 0.4%
	3,715	Lucent Technologies Capital Trust I, 7.750%		3,009,150
		Total Convertible Preferred Stocks
		(Identified Cost $13,186,958)		15,535,005
	Non-Convertible Preferred Stocks – 0.7%
		Banking – 0.1%
	1,121	Ally Financial, Inc., Series G, 7.000%, 144A		1,009,075
		Diversified Financial Services – 0.0%
	5,000	Bank of America Corp., 6.375%		115,900
		Electric Utilities – 0.1%
	90	Entergy New Orleans, Inc., 4.360%		6,784
	2,876	Entergy New Orleans, Inc., 4.750%		226,395
	202	MDU Resources Group, Inc., 5.100%		20,055

See accompanying notes to financial statements.

|  46

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund – continued

Shares		Description	Value (†)
	Preferred Stocks – continued
		Electric Utilities – continued
	4,670	Union Electric Co., 4.500%	$	345,580
				598,814
		Multi-Utilities – 0.0%
	100	Xcel Energy, Inc., Series D, 4.110%		7,700
		Software – 0.4%
	3,000	Falcons Funding Trust I, (Step to 10.875% on 3/15/2015, variable rate after 3/15/2020), 8.875%, 144A(i)		3,164,062
		Thrifts & Mortgage Finance – 0.1%
	20,975	Countrywide Capital IV, 6.750%		505,288
		Total Non-Convertible Preferred Stocks
		(Identified Cost $4,153,217)		5,400,839
		Total Preferred Stocks
		(Identified Cost $17,340,175)		20,935,844
	Common Stocks – 2.3%
		Biotechnology – 0.5%
	127,420	Vertex Pharmaceuticals, Inc.(h)		4,404,910
		Containers & Packaging – 0.1%
	35,353	Owens-Illinois, Inc.(h)		992,005
	10,468	Smurfit-Stone Container Corp.(h)		192,297
				1,184,302
		Electronic Equipment, Instruments & Components – 0.5%
	205,167	Corning, Inc.		3,750,453
		Media – 0.0%
	3,027	SuperMedia, Inc.(h)		31,995
		Oil, Gas & Consumable Fuels – 0.2%
	54,259	Chesapeake Energy Corp.		1,228,966
		Pharmaceuticals – 0.1%
	20,881	Valeant Pharmaceuticals International, Inc.		523,071
		Semiconductors & Semiconductor Equipment – 0.9%
	388,905	Intel Corp.		7,478,643
		Total Common Stocks
		(Identified Cost $15,901,161)		18,602,340

Principal Amount (‡)		Description	Value (†)
	Short-Term Investments – 1.1%
$	37,619	Repurchase Agreement with State Street Corporation, dated 9/30/2010 at 0.000% to be repurchased at $37,619 on 10/01/2010 collateralized by $40,000 U.S. Treasury Note, 3.125% due 4/30/2017 valued at $43,804 including accrued interest (Note 2 of Notes to Financial Statements)	$	37,619
	8,790,962	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2010 at 0.000% to be repurchased at $8,790,962 on 10/01/2010 collateralized by $8,905,000 Federal Home Loan Bank, 0.785% due 11/25/2011 valued at $8,971,788 including accrued interest (Note 2 of Notes to Financial Statements)		8,790,962
		Total Short-Term Investments
		(Identified Cost $8,828,581)		8,828,581
		Total Investments – 98.9%
		(Identified Cost $715,557,933)(a)		796,890,031
		Other Assets Less Liabilities—1.1%		9,248,422
		Net Assets – 100.0%	$	806,138,453
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 25.
	(†††)	Amount shown represents units. One unit represents a principal amount of 100.
	(a)	Federal Tax Information: At September 30, 2010, the net unrealized appreciation on investments based on a cost of $718,469,342 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	$	92,901,848
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(14,481,159	)
		Net unrealized appreciation	$	78,420,689
	(b)	Illiquid security. At September 30, 2010, the value of these securities amounted to $27,543,769 or 3.4% of net assets.
	(c)	Variable rate security. Rate as of September 30, 2010 is disclosed.
	(d)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
	(e)	Variable rate security. Rate shown represents the weighted average rate at September 30, 2010.
	(f)	Issuer has filed for bankruptcy.
	(g)	All or a portion of interest payment is paid-in-kind.
	(h)	Non-income producing security.
	(i)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
	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, 2010, the total value of these securities amounted to $80,692,048 or 10.0% of net assets.

See accompanying notes to financial statements.

47  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Fixed Income Fund – continued

ABS	Asset-Backed Securities
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MTN	Medium Term Note
REITs	Real Estate Investment Trusts
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
ISK	Icelandic Krona
KRW	South Korean Won
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar
SGD	Singapore Dollar

Industry Summary at September 30, 2010 (Unaudited)

Treasuries	17.1	%
Sovereigns	6.6
Banking	6.5
Non-Captive Diversified	6.0
Technology	4.7
Automotive	4.6
Electric	4.3
Local Authorities	4.3
Supranational	3.5
Wirelines	3.5
Non-Captive Consumer	3.2
Healthcare	2.7
Other Investments, less than 2% each	30.8
Short-Term Investments	1.1
Total Investments	98.9
Other assets less liabilities	1.1
Net Assets	100.0	%

Currency Exposure at September 30, 2010 as a Percentage of Net Assets (Unaudited)

United States Dollar	63.4	%
Canadian Dollar	18.8
New Zealand Dollar	4.0
Indonesian Rupiah	2.0
Other, less than 2% each	10.7
Total Investments	98.9
Other assets less liabilities	1.1
Net Assets	100.0	%

See accompanying notes to financial statements.

|  48

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Global Bond Fund

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – 95.1% of Net Assets
	Non-Convertible Bonds – 94.8%
		Argentina – 0.7%
$	6,675,000	Pan American Energy LLC, 7.875%, 5/07/2021, 144A	$	6,958,687
	8,320,000	Transportadora de Gas del Sur SA, 7.875%, 5/14/2017, 144A		8,132,800
				15,091,487
		Australia – 0.7%
	16,675,000	New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010, (AUD)		16,169,580
	445,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		434,037
				16,603,617
		Bermuda – 0.5%
	4,805,000	Noble Group Ltd., 8.500%, 5/30/2013, 144A		5,418,608
	6,905,000	White Mountains RE Group Ltd., 6.375%, 3/20/2017, 144A		6,980,313
				12,398,921
		Brazil – 1.5%
	7,000,000	Banco Nacional de Desenvolvimento Economico e Social, 6.500%, 6/10/2019, 144A		8,076,250
	29,000,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		19,136,229
	7,444,000	Telemar Norte Leste SA, 5.500%, 10/23/2020, 144A		7,537,050
				34,749,529
		Canada – 7.0%
	4,440,000	Bell Aliant Regional Communications, 5.410%, 9/26/2016, (CAD)		4,681,829
	1,240,000	Bell Canada, MTN, 5.000%, 2/15/2017, (CAD)		1,298,378
	160,000	Bell Canada, MTN, 6.550%, 5/01/2029, 144A, (CAD)		167,565
	3,180,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		3,600,271
	3,090,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		3,136,610
	61,878,000	Canadian Government, 4.500%, 6/01/2015, (CAD)		67,092,735
	10,595,000	Corus Entertainment, Inc., 7.250%, 2/10/2017, 144A, (CAD)		10,917,515
	5,212,000	Ford Auto Securitization Trust, Series 2010-R3A, Class D, 4.526%, 3/15/2017, 144A, (CAD)		5,065,604
	3,800,000	Pacific Rubiales Energy Corp., 8.750%, 11/10/2016, 144A		4,275,000

Principal Amount (‡)		Description	Value (†)
		Canada – continued
$	14,540,000	Province of British Columbia, 2.850%, 6/15/2015	$	15,462,447
	6,700,000	Province of Ontario, EMTN, 4.000%, 12/03/2019, (EUR)		9,991,968
	9,015,000	Province of Ontario, 2.950%, 2/05/2015		9,543,027
	766,000,000	Province of Quebec, 1.600%, 5/09/2013, (JPY)		9,316,516
	11,000,000	Province of Quebec, EMTN, 3.375%, 6/20/2016, (EUR)		15,792,028
	1,550,000	Shaw Communications, Inc., 6.500%, 6/02/2014, (CAD)		1,682,795
				162,024,288
		Cayman Islands – 1.9%
	5,000,000	CCL Finance Ltd., 9.500%, 8/15/2014, 144A		5,862,500
	3,600,000	Marfrig Overseas Ltd., 9.500%, 5/04/2020, 144A		3,820,500
	1,170,000	Marfrig Overseas Ltd., 9.625%, 11/16/2016, 144A		1,254,825
	15,600,000	Petrobras International Finance Co., 5.875%, 3/01/2018		17,334,626
	6,716,000	Vale Overseas Ltd., 6.875%, 11/21/2036		7,672,748
	6,700,000	Voto-Votorantim Ltd., 6.750%, 4/05/2021, 144A		7,068,500
				43,013,699
		Denmark – 1.8%
	210,000,000	Denmark Government Bond, 4.000%, 11/15/2015, (DKK)		42,656,260
		Finland – 2.2%
	24,215,000	Finland Government Bond, 3.125%, 9/15/2014, (EUR)		35,226,151
	10,070,000	Finland Government Bond, 3.875%, 9/15/2017, (EUR)		15,260,517
				50,486,668
		Germany – 14.3%
	5,100,000	Bertelsmann AG, EMTN, 3.625%, 10/06/2015, (EUR)		7,171,165
	50,155,000	Bundesrepublik Deutschland, 3.000%, 7/04/2020, (EUR)		72,710,771
	91,105,000	Bundesrepublik Deutschland, 3.250%, 1/04/2020, (EUR)		134,730,988
	1,140,000,000	Kreditanstalt fuer Wiederaufbau, 2.600%, 6/20/2037, (JPY)		15,418,951
	8,720,000	Landesbank Baden-Wuerttemberg, 3.750%, 2/12/2014, (EUR)		12,684,115
	11,515,000	Muenchener Hypothekenbank eG, 5.000%, 1/16/2012, (EUR)		16,436,693

See accompanying notes to financial statements.

49  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Global Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Germany – continued
	41,500,000	Republic of Germany, 1.250%, 9/16/2011, (EUR)(b)	$	56,858,894
	9,415,000	Republic of Germany, 3.750%, 7/04/2013, (EUR)		13,803,788
				329,815,365
		India – 1.1%
	17,500,000	Canara Bank Ltd., (fixed rate to 11/28/2016, variable rate thereafter), 6.365%, 11/28/2021		17,452,767
	7,940,000	ICICI Bank Ltd., (fixed rate to 4/30/2017, variable rate thereafter), 6.375%, 4/30/2022, 144A		7,980,899
				25,433,666
		Indonesia – 0.3%
	42,900,000,000	Indonesia Government International Bond, 11.500%, 9/15/2019, (IDR)		6,008,341
		Ireland – 0.2%
	520,000,000	Depfa ACS Bank, Series 686, EMTN, 1.650%, 12/20/2016, (JPY)		5,145,801
		Italy – 2.3%
	4,850,000	Finmeccanica SpA, EMTN, 4.875%, 3/24/2025, (EUR)		6,733,553
	33,530,000	Italy Buoni Poliennali Del Tesoro, 4.000%, 9/01/2020, (EUR)		46,404,572
				53,138,125
		Japan – 9.2%
	400,000,000	Development Bank of Japan, 1.750%, 3/17/2017, (JPY)		5,173,886
	1,000,000,000	Japan Finance Organization for Municipal Enterprises, 1.350%, 11/26/2013, (JPY)		12,423,251
	1,200,000,000	Japan Finance Organization for Municipal Enterprises, 1.550%, 2/21/2012, (JPY)		14,615,376
	6,050,000,000	Japan Government, 0.700%, 6/20/2014, (JPY)		73,835,003
	7,066,000,000	Japan Government, 1.300%, 3/20/2019, (JPY)		89,032,108
	1,262,100,000	Japan Government, 1.400%, 6/20/2011, (JPY)		15,255,278
	1,965,000	Nomura Holdings, Inc., 6.700%, 3/04/2020		2,245,502
				212,580,404
		Jersey – 0.3%
	4,550,000	WPP PLC, 6.000%, 4/04/2017, (GBP)		7,807,887

Principal Amount (‡)		Description	Value (†)
		Korea – 0.7%
$	1,610,000	SK Broadband Co. Ltd., 7.000%, 2/01/2012, 144A	$	1,706,600
	11,600,000	SK Telecom Co. Ltd., 6.625%, 7/20/2027, 144A		13,682,838
				15,389,438
		Luxembourg – 0.7%
	13,800,000	ArcelorMittal, 7.000%, 10/15/2039		14,097,694
	3,000,000	CSN Resources SA, 6.500%, 7/21/2020, 144A		3,198,750
				17,296,444
		Mexico – 3.0%
	3,160,000	Axtel SAB de CV, 7.625%, 2/01/2017, 144A		2,891,400
	4,715,000	Axtel SAB de CV, 9.000%, 9/22/2019, 144A		4,349,587
	5,300,000	BBVA Bancomer SA, 7.250%, 4/22/2020, 144A		5,693,483
	2,026,000	Corporacion GEO SAB de CV, 8.875%, 9/25/2014, 144A		2,248,860
	4,800,000	Corporacion GEO SAB de CV, 9.250%, 6/30/2020, 144A		5,442,000
	8,400,000	Desarrolladora Homex SAB de CV, 7.500%, 9/28/2015		8,652,000
	700,000(††)	Mexican Fixed Rate Bonds, Series M-10, 8.000%, 12/17/2015, (MXN)		6,121,976
	1,735,500(††)	Mexican Fixed Rate Bonds, Series M-10, 8.500%, 12/13/2018, (MXN)		15,939,720
	1,373,000(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		12,391,337
	4,900,000	Mexichem SAB de CV, 8.750%, 11/06/2019, 144A		5,659,500
				69,389,863
		Netherlands – 1.7%
	3,850,000	British American Tobacco Holdings BV, 4.000%, 7/07/2020, (EUR)		5,484,907
	12,995,000	Kingdom of Netherlands, 5.500%, 1/15/2028, (EUR)(b)		23,973,770
	1,465,000	Listrindo Capital BV, 9.250%, 1/29/2015, 144A		1,661,823
	5,000,000	Majapahit Holding BV, 7.750%, 1/20/2020, 144A		6,000,000
	1,000,000	OI European Group BV, 6.875%, 3/31/2017, 144A, (EUR)		1,417,780
				38,538,280
		Norway – 0.7%
	89,840,000	Norwegian Government, 4.500%, 5/22/2019, (NOK)		16,858,235

See accompanying notes to financial statements.

|  50

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Global Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Poland – 0.3%
	5,900,000	Poland Government International Bond, 3.000%, 9/23/2014, (CHF)	$	6,202,310
		Singapore – 2.0%
	5,300,000	Prime Dig Pte Ltd., 11.750%, 11/03/2014, 144A		5,498,750
	27,845,000	Singapore Government Bond, 1.625%, 4/01/2013, (SGD)		21,745,207
	24,355,000	Singapore Government Bond, 2.250%, 7/01/2013, (SGD)		19,396,236
				46,640,193
		South Africa – 0.4%
	8,495,000	Edcon Proprietary Ltd., 4.129%, 6/15/2014, 144A, (EUR)(c)		9,727,882
		Supranationals – 3.6%
	1,700,000,000	Asian Development Bank, EMTN, 2.350%, 6/21/2027, (JPY)		22,284,683
	8,770,000	European Bank for Reconstruction & Development, GMTN, 9.250%, 9/10/2012, (BRL)		5,216,906
	450,000,000	European Investment Bank, 1.400%, 6/20/2017, (JPY)		5,686,770
	17,470,000	European Investment Bank, 2.375%, 7/10/2020, (CHF)		18,940,723
	90,681,660,000	European Investment Bank, EMTN, Zero Coupon, 4/24/2013, 144A, (IDR)		8,750,145
	285,470,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 8/20/2015, (IDR)		23,240,616
				84,119,843
		Sweden – 2.9%
	143,670,000	Sweden Government Bond, 5.000%, 12/01/2020, (SEK)		25,899,756
	250,275,000	Sweden Government Bond, 5.500%, 10/08/2012, (SEK)(b)		40,116,182
				66,015,938
		Switzerland – 0.4%
	8,500,000	Credit Suisse of New York, MTN, 4.375%, 8/05/2020		8,680,718
		Turkey – 0.4%
	8,500,000	Akbank TAS, 5.125%, 7/22/2015, 144A		8,466,850

Principal Amount (‡)		Description	Value (†)
		United Arab Emirates – 1.8%
$	500,000	Abu Dhabi National Energy Co., 6.165%, 10/25/2017, 144A	$	532,515
	6,800,000	Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A		7,603,869
	5,372,080	Dolphin Energy Ltd., 5.888%, 6/15/2019, 144A		5,796,474
	29,110,000	DP World Ltd., 6.850%, 7/02/2037, 144A		27,226,234
				41,159,092
		United Kingdom – 6.2%
	9,500,000	Barclays Bank PLC, 6.050%, 12/04/2017, 144A		10,302,598
	950,000	British Sky Broadcasting Group PLC, EMTN, 6.000%, 5/21/2027, (GBP)		1,642,099
	7,100,000	British Telecommunications PLC, 5.750%, 12/07/2028, (GBP)		10,655,945
	4,300,000	HSBC Bank PLC, 4.125%, 8/12/2020, 144A		4,370,111
	4,800,000	Lloyds TSB Bank PLC, MTN, 6.500%, 9/14/2020, 144A		4,846,248
	13,775,000	Rexam PLC, 6.750%, 6/01/2013, 144A		14,940,875
	13,240,000	United Kingdom Treasury, 4.000%, 3/07/2022, (GBP)		22,300,167
	18,575,000	United Kingdom Treasury, 4.750%, 3/07/2020, (GBP)		33,474,672
	8,300,000	United Kingdom Treasury, 5.000%, 3/07/2025, (GBP)		15,296,206
	11,620,000	United Kingdom Treasury, 5.250%, 6/07/2012, (GBP)		19,637,493
	6,600,000	Virgin Media Secured Finance PLC, 6.500%, 1/15/2018		6,963,000
				144,429,414
		United States – 25.1%
	6,055,000	Ahold Finance USA, Inc., EMTN, 6.500%, 3/14/2017, (GBP)		10,888,914
	3,895,000	Ally Financial, Inc., 6.875%, 8/28/2012		4,065,406
	4,200,000	Alta Wind Holdings LLC, 7.000%, 6/30/2035, 144A		4,444,776
	815,000	American Express Issuance Trust, Series 2005-2, Class A, 0.327%, 8/15/2013(c)		813,705
	267,563	American Home Mortgage Investment Trust, Series 2007-2, Class 12A1, 0.526%, 3/25/2037(c)		143,967
	2,250,000	American Stores Co., Series B, MTN, 7.100%, 3/20/2028		1,732,500
	4,200,000	Anadarko Petroleum Corp., 6.375%, 9/15/2017		4,628,211
	1,864,000	Arch Western Finance LLC, 6.750%, 7/01/2013		1,884,970
	10,200,000	Avis Budget Rental Car Funding AESOP LLC, Series 2009-2A, Class A, 5.680%, 2/20/2014, 144A		10,912,109

See accompanying notes to financial statements.

51  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Global Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		United States – continued
$	5,655,000	Avnet, Inc., 5.875%, 6/15/2020	$	6,008,743
	9,360,000	Bank of America Corp., 5.625%, 7/01/2020		9,890,703
	1,265,000	Bank of America Credit Card Trust, Series 2007-B2, Class B2, 0.457%, 6/15/2016(c)		1,228,185
	300,000	Bear Stearns Commercial Mortgage Securities, Series 2006-PW13, Class A4, 5.540%, 9/11/2041		327,992
	200,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		205,793
	100,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A4, 5.717%, 6/11/2040(c)		108,583
	385,000	Capital One Auto Finance Trust, Series 2007-C, Class A4, 5.230%, 7/15/2014		400,661
	6,350,000	Capital One Multi-Asset Execution Trust, Series 2004-B7, Class B7, 1.336%, 8/17/2017, (EUR)(c)		7,990,736
	840,000	Capital One Multi-Asset Execution Trust, Series 2005-A10, Class A, 0.337%, 9/15/2015(c)		834,690
	2,743,653	Centre Point Funding LLC, Series 2010-1A, Class 1, 5.430%, 7/20/2016, 144A		2,901,033
	1,000,000	Chase Issuance Trust, Series 2007-B1, Class B1, 0.507%, 4/15/2019(c)		959,485
	9,650,000	Chrysler Financial Lease Trust, Series 2010-A, Class B, 3.460%, 9/16/2013, 144A		9,668,631
	5,130,000	Citibank Credit Card Issuance Trust, Series 2001-A4, Class A4, 5.375%, 4/10/2013, (EUR)		7,094,817
	100,000	Citibank Credit Card Issuance Trust, Series 2005-C1, Class C1, 5.500%, 3/24/2017		108,041
	6,900,000	Citigroup, Inc., 5.500%, 2/15/2017		7,124,802
	658,743	Continental Airlines Pass Through Trust, Series 2000-1, Class A-1, 8.048%, 5/01/2022		711,442
	1,462,444	Continental Airlines Pass Through Trust, Series 2000-2, Class B, 8.307%, 10/02/2019		1,477,068
	508,940	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		496,216
	3,929,161	Continental Airlines Pass Through Trust, Series 2007-1, Class A, 5.983%, 10/19/2023		4,056,859

Principal Amount (‡)		Description	Value (†)
		United States – continued
$	3,775,000	Couche-Tard US/Finance, 7.500%, 12/15/2013	$	3,831,625
	900,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 5.805%, 9/15/2039(c)		894,577
	1,675,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		1,678,782
	3,000,000	Crown Castle Towers LLC, 3.214%, 8/15/2035, 144A		3,034,869
	6,300,000	Crown Castle Towers LLC, 4.523%, 1/15/2035, 144A		6,656,901
	3,401,000	Crown Castle Towers LLC, 6.113%, 1/15/2040, 144A		3,757,187
	8,590,000	CSC Holdings LLC, 8.500%, 4/15/2014		9,459,737
	4,000,000	CSX Corp., 6.150%, 5/01/2037		4,550,076
	5,554,000	CSX Corp., MTN, 6.000%, 10/01/2036		6,191,882
	6,480,153	Delta Air Lines, Inc., Series 2007-1, Class A, 6.821%, 2/10/2024		6,795,736
	1,717,994	Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024		1,726,584
	3,350,000	DISH DBS Corp., 6.625%, 10/01/2014		3,500,750
	4,585,000	DISH DBS Corp., 7.000%, 10/01/2013		4,865,831
	6,047,000	Embarq Corp., 7.995%, 6/01/2036		6,429,346
	6,306,000	Erac USA Finance Co., 6.375%, 10/15/2017, 144A		7,331,009
	120,000	Erac USA Finance Co., 6.700%, 6/01/2034, 144A		133,240
	7,530,000	Erac USA Finance Co., 7.000%, 10/15/2037, 144A		8,674,929
	4,500,000	Ford Motor Credit Co. LLC, 7.000%, 4/15/2015		4,808,610
	10,195,000	Frontier Communications Corp., 6.250%, 1/15/2013		10,679,262
	480,000	Frontier Communications Corp., 6.625%, 3/15/2015		495,600
	888,000,000	General Electric Capital Corp., EMTN, 1.000%, 3/21/2012, (JPY)		10,674,296
	4,540,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		4,664,850
	180,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		202,050
	1,805,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		2,057,700
	1,250,000	Goldman Sachs Group, Inc. (The), 6.875%, 1/18/2038, (GBP)		2,012,126

See accompanying notes to financial statements.

|  52

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Global Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		United States – continued
$	9,662,470	Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A2, 5.117%, 4/10/2037	$	9,771,665
	1,000,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4, 5.736%, 12/10/2049		1,046,527
	700,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/2039		737,874
	3,535,000	HCA, Inc., 5.750%, 3/15/2014		3,486,394
	1,270,000	HCA, Inc., 6.250%, 2/15/2013		1,292,225
	1,205,000	HCA, Inc., 6.375%, 1/15/2015		1,201,988
	2,440,000	HCA, Inc., 6.500%, 2/15/2016		2,440,000
	770,000	HCA, Inc., 6.750%, 7/15/2013		785,400
	525,000	HCA, Inc., 7.500%, 11/06/2033		481,688
	635,000	HCA, Inc., 7.690%, 6/15/2025		593,725
	624,000	HCA, Inc., MTN, 7.580%, 9/15/2025		580,320
	165,000	HCA, Inc., MTN, 7.750%, 7/15/2036		151,800
	5,400,000	Hertz Vehicle Financing LLC, Series 2009-2A, Class A1, 4.260%, 3/25/2014, 144A		5,665,285
	5,000,000	Hertz Vehicle Financing LLC, Series 2009-2A, Class B1, 4.940%, 3/25/2016, 144A		5,086,549
	5,680,000	Hilcorp Energy I LP, 7.750%, 11/01/2015, 144A		5,736,800
	5,772,000	Home Depot, Inc. (The), 5.875%, 12/16/2036		6,153,466
	5,700,000	HSBC USA, Inc., 5.000%, 9/27/2020		5,695,645
	4,435,000	Incitec Pivot Finance LLC, 6.000%, 12/10/2019, 144A		4,701,983
	1,875,000	IPALCO Enterprises, Inc., 7.250%, 4/01/2016, 144A		2,015,625
	1,105,000	JPMorgan Chase & Co., 4.400%, 7/22/2020		1,131,638
	26,740,000,000	JPMorgan Chase Bank NA, EMTN, Zero Coupon, 10/17/2011, 144A, (IDR)		2,835,489
	1,900,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A4, 5.817%, 6/15/2049(c)		1,963,199
	4,510,000	L-3 Communications Corp., 5.875%, 1/15/2015		4,611,475

Principal Amount (‡)		Description	Value (†)
		United States – continued
$	300,000	LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class A4, 5.881%, 6/15/2038(c)	$	330,542
	5,671,162	Marriott Vacation Club Owner Trust, Series 2009-2A, Class A, 4.809%, 7/20/2031, 144A		5,885,528
	3,000,000	MBNA Credit Card Master Note Trust, Series 2002-A2, Class A, 5.600%, 7/17/2014, (EUR)		4,246,990
	8,155,000	Merrill Auto Trust Securitization, Series 2008-1, Class A4A, 6.150%, 4/15/2015		8,528,614
	1,000,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051		1,003,317
	3,165,000	Morgan Stanley, 4.750%, 4/01/2014		3,305,425
	2,070,000	Morgan Stanley, 5.375%, 11/14/2013, (GBP)		3,426,612
	100,000	Morgan Stanley Capital I, Series 2006-HQ10, Class A4, 5.328%, 11/12/2041		107,124
	700,000	Morgan Stanley Capital I, Series 2007-T27, Class A4, 5.649%, 6/11/2042(c)		776,445
	200,000	Morgan Stanley Capital I, Series 2008-T29, Class A4, 6.280%, 1/11/2043(c)		228,233
	125,000	Motorola, Inc., 6.500%, 9/01/2025		136,036
	115,000	Motorola, Inc., 6.500%, 11/15/2028		122,103
	6,120,000	Motorola, Inc., 6.625%, 11/15/2037		6,544,593
	4,855,000	Nabors Industries, Inc., 6.150%, 2/15/2018		5,403,508
	3,730,000	News America, Inc., 6.150%, 3/01/2037		4,016,281
	5,525,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		5,552,625
	4,309,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		4,335,931
	540,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		537,300
	5,995,000	Nissan Master Owner Trust Receivables, Series 2010-AA, Class A, 1.407%, 1/15/2015, 144A(c)		6,084,887
	3,745,000	NRG Energy, Inc., 8.250%, 9/01/2020, 144A		3,862,031
	7,740,000	Owens & Minor, Inc., 6.350%, 4/15/2016(d)		7,900,597
	2,170,000	Owens-Brockway Glass Container, Inc., 6.750%, 12/01/2014, (EUR)		3,032,210
	6,890,000	ProLogis, 6.625%, 5/15/2018		6,790,936

See accompanying notes to financial statements.

53  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Global Bond Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		United States – continued
$	5,770,000	Prudential Financial, Inc., 5.375%, 6/21/2020	$	6,237,087
	365,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		343,100
	3,410,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		3,444,100
	2,635,000	Qwest Corp., 6.875%, 9/15/2033		2,602,062
	100,000	Qwest Corp., 7.200%, 11/10/2026		100,000
	1,656,000	Qwest Corp., 7.250%, 9/15/2025		1,738,800
	5,165,000	Qwest Corp., 7.250%, 10/15/2035		5,113,350
	5,285,000	Qwest Corp., 7.500%, 6/15/2023		5,311,425
	2,487,000	Qwest Corp., 7.625%, 6/15/2015		2,835,180
	10,745,000	Rowan Cos., Inc., 7.875%, 8/01/2019		12,824,190
	2,771,225	Sierra Receivables Funding Co., Series 2009-2A, 4.520%, 8/20/2026, 144A		2,780,075
	6,062,169	Sierra Receivables Funding Co., Series 2009-3A, Class A1, 7.620%, 7/20/2026, 144A		6,145,122
	6,610,000	SLM Corp., Series A, MTN, 5.000%, 10/01/2013		6,477,694
	6,635,000	Steel Dynamics, Inc., 7.375%, 11/01/2012		7,091,156
	1,430,000	SUPERVALU, Inc., 7.500%, 11/15/2014		1,437,150
	11,350,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		15,359,026
	2,795,000	Time Warner, Inc., 6.950%, 1/15/2028		3,250,504
	95,030,000	U.S. Treasury Note, 1.000%, 7/31/2011(b)		95,605,407
	16,585,000	U.S. Treasury Note, 2.750%, 2/15/2019		17,205,644
	300,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.308%, 11/15/2048		323,076
	148,000	WEA Finance LLC, 7.125%, 4/15/2018, 144A		174,050
	235,000	WEA Finance LLC/WT Finance Australia Property Ltd., 6.750%, 9/02/2019, 144A		278,430
	4,750,000	Wells Fargo & Co., 4.625%, 11/02/2035, (GBP)		6,975,891
	9,465,000	World Financial Network Credit Card Master Trust, Series 2010-A, Class A, 3.960%, 4/15/2019		9,821,866
				580,015,606

Principal Amount (‡)		Description	Value (†)
		Uruguay – 0.9%
	186,420,563	Uruguay Government International Bond, 3.700%, 6/26/2037, (UYU)	$	9,311,052
	213,399,444	Uruguay Government International Bond, 5.000%, 9/14/2018, (UYU)		12,021,063
				21,332,115
		Total Non-Convertible Bonds
		(Identified Cost $2,025,958,409)		2,191,216,279
	Convertible Bonds – 0.3%
		United States – 0.3%
	2,784,000	Advanced Micro Devices, Inc., 6.000%, 5/01/2015		2,738,760
	1,500,000	ERP Operating LP, 3.850%, 8/15/2026		1,544,400
	3,820,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(e)		3,533,500
		Total Convertible Bonds
		(Identified Cost $6,727,384)		7,816,660
		Total Bonds And Notes
		(Identified Cost $2,032,685,793)		2,199,032,939
	Short-Term Investments – 1.2%
	26,571,435	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2010 at 0.000% to be repurchased at $26,571,435 on 10/01/2010 collateralized by $26,510,000 Federal Home Loan Bank, 4.375% due 10/22/2010 valued at $27,106,475 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $26,571,435)		26,571,435
		Total Investments – 96.3%
		(Identified Cost$2,059,257,228)(a)		2,225,604,374
		Other Assets Less Liabilities—3.7%		86,298,957
		Net AssetS – 100.0%	$	2,311,903,331
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 100.

See accompanying notes to financial statements.

|  54

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Global Bond Fund – continued

(a)	Federal Tax Information:
	At September 30, 2010, the net unrealized appreciation on investments based on a cost of $2,066,985,649 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	$	166,843,480
	Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(8,224,755	)
	Net unrealized appreciation	$	158,618,725
(b)	All or a portion of this security is held as collateral for open futures contracts and forward foreign currency contracts.
(c)	Variable rate security. Rate as of September 30, 2010 is disclosed.
(d)	Illiquid security. At September 30, 2010, the value of this security amounted to $7,900,597 or 0.3% of net assets.
(e)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
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, 2010, the total value of these securities amounted to $360,298,326 or 15.6% of net assets.
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MTN	Medium Term Note
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CHF	Swiss Franc
DKK	Danish Krone
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
JPY	Japanese Yen
MXN	Mexican Peso
NOK	Norwegian Krone
SEK	Swedish Krona
SGD	Singapore Dollar
UYU	Uruguayan Peso

At September 30, 2010, the Fund had the following open forward foreign currency contracts:

Contract to Buy/Sell	Delivery Date		Currency	Units		Notional Value		Unrealized Appreciation (Depreciation)
Buy1		11/16/2010	Chinese Renminbi		138,000,000	$	20,630,323	$	(304,143	)
Sell1		11/16/2010	Chinese Renminbi		138,000,000		20,630,323		(160,101	)
Sell2		12/15/2010	Danish Krone		230,000,000		42,059,699		(2,733,377	)
Sell3		10/28/2010	Mexican Peso		350,000,000		27,723,895		84,339
Buy4		10/22/2010	Malaysian Ringgit		69,000,000		22,324,713		203,657
Buy2		10/13/2010	Singapore Dollar		29,000,000		22,050,581		1,130,079
Buy5		12/13/2010	South Korean Won		21,500,000,000		18,800,081		643,598
Buy2		12/13/2010	South Korean Won		43,930,000,000		38,413,376		1,294,660
Buy3		12/13/2010	South Korean Won		23,100,000,000		20,199,157		697,258
Total								$	855,970

¹Counterparty is Morgan Stanley & Co., Inc.

²Counterparty is Barclays Bank PLC.

³Counterparty is Credit Suisse.

⁴Counterparty is JPMorgan Chase Bank.

⁵Counterparty is UBS.

At September 30, 2010, open futures contracts sold were as follows:

Financial Futures	Expiration Date		Contracts	Notional Value		Unrealized (Depreciation)
30 Year U.S. Treasury Bond		12/21/2010	450	$	60,173,438		$ (521,136	)

Industry Summary at September 30, 2010 (Unaudited)

Treasuries	43.8	%
Banking	6.3
Sovereigns	4.9
Supranational	3.6
Wirelines	3.1
Local Authorities	2.6
ABS Car Loan	2.3
Government Owned—No Guarantee	2.2
Government Guaranteed	2.0
Other Investments, less than 2% each	24.3
Short-Term Investments	1.2
Total Investments	96.3
Other assets less liabilities (including open forward foreign currency and futures contracts)	3.7
Net Assets	100.0	%

Currency Exposure at September 30, 2010 as a Percentage of Net Assets (Unaudited)

United States Dollar	37.3	%
Euro	22.6
Japanese Yen	12.1
British Pound	5.8
Canadian Dollar	4.2
Swedish Krona	2.9
Other, less than 2% each	11.4
Total Investments	96.3
Other assets less liabilities (including open forward foreign currency and futures contracts)	3.7
Net Assets	100.0	%

See accompanying notes to financial statements.

55  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Inflation Protected Securities Fund

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – 99.3% of Net Assets
		Banking – 1.2%
$	10,000	Goldman Sachs Group, Inc. (The), 6.125%, 2/15/2033	$	10,879
	145,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		150,717
				161,596
		Building Materials – 0.1%
	10,000	Masco Corp., 7.125%, 3/15/2020		10,244
		Chemicals – 0.2%
	25,000	CF Industries, Inc., 6.875%, 5/01/2018		26,906
		Construction Machinery – 1.2%
	165,000	Joy Global, Inc., 6.625%, 11/15/2036		163,669
		Food & Beverage – 0.9%
	40,000	Bottling Group LLC, 5.125%, 1/15/2019		45,903
	75,000	Dean Foods Co., 6.900%, 10/15/2017		70,688
				116,591
		Independent Energy – 0.3%
	35,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		36,313
		Life Insurance – 0.4%
	60,000	Penn Mutual Life Insurance Co. (The), 7.625%, 6/15/2040, 144A		60,310
		Lodging – 0.3%
	50,000	Royal Caribbean Cruises Ltd., 7.500%, 10/15/2027		47,000
		Media Non-Cable – 0.2%
	30,000	CBS Corp., 5.500%, 5/15/2033		29,204
		Metals & Mining – 1.0%
	85,000	Alcoa, Inc., 5.950%, 2/01/2037		78,234
	55,000	United States Steel Corp., 6.650%, 6/01/2037		48,812
				127,046
		Paper – 0.6%
	70,000	Georgia-Pacific LLC, 7.700%, 6/15/2015		77,525
		Pharmaceuticals – 0.1%
	10,000	Valeant Pharmaceuticals International, 6.750%, 10/01/2017, 144A		10,200
		Pipelines – 0.3%
	3,000	Colorado Interstate Gas Co., 5.950%, 3/15/2015		3,332
	30,000	Southern Natural Gas Co., 7.350%, 2/15/2031		33,627
				36,959

Principal Amount (‡)		Description	Value (†)
		Sovereigns – 1.0%
	15,000(††)	Mexican Fixed Rate Bonds, Series M-10, 8.000%, 12/17/2015, (MXN)	$	131,185
		Technology – 0.9%
	105,000	Agilent Technologies, Inc., 6.500%, 11/01/2017		120,949
		Textile – 0.1%
	10,000	Jones Apparel Group, Inc., 6.125%, 11/15/2034		8,150
		Tobacco – 1.4%
	130,000	Altria Group, Inc., 9.950%, 11/10/2038		187,323
		Treasuries – 85.0%
	525,523	U.S. Treasury Inflation Indexed Bond, 1.625%, 1/15/2018		570,152
	697,229	U.S. Treasury Inflation Indexed Bond, 1.750%, 1/15/2028		739,008
	115,333	U.S. Treasury Inflation Indexed Bond, 2.000%, 1/15/2026		126,821
	216,860	U.S. Treasury Inflation Indexed Bond, 2.125%, 2/15/2040		242,324
	289,143	U.S. Treasury Inflation Indexed Bond, 2.375%, 1/15/2025		332,491
	275,668	U.S. Treasury Inflation Indexed Bond, 2.375%, 1/15/2027		318,202
	296,865	U.S. Treasury Inflation Indexed Bond, 2.500%, 7/15/2016		336,200
	884,318	U.S. Treasury Inflation Indexed Bond, 3.375%, 4/15/2032		1,194,245
	302,445	U.S. Treasury Inflation Indexed Note, 1.375%, 1/15/2020		321,419
	1,027,566	U.S. Treasury Inflation Indexed Note, 1.625%, 1/15/2015		1,098,131
	635,045	U.S. Treasury Inflation Indexed Note, 1.875%, 7/15/2013		674,933
	745,345	U.S. Treasury Inflation Indexed Note, 1.875%, 7/15/2015		810,272
	300,867	U.S. Treasury Inflation Indexed Note, 2.000%, 1/15/2014		322,680
	850,079	U.S. Treasury Inflation Indexed Note, 2.000%, 7/15/2014		919,413
	917,172	U.S. Treasury Inflation Indexed Note, 2.000%, 1/15/2016		1,005,164
	475,662	U.S. Treasury Inflation Indexed Note, 2.375%, 1/15/2017		536,160
	752,094	U.S. Treasury Inflation Indexed Note, 2.625%, 7/15/2017		867,141
	848,757	U.S. Treasury Inflation Indexed Note, 3.000%, 7/15/2012		901,274
				11,316,030

See accompanying notes to financial statements.

|  56

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Inflation Protected Securities Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Wireless – 0.8%
$	20,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015	$	20,100
	5,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		5,031
	10,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		9,950
	85,000	Sprint Capital Corp., 6.875%, 11/15/2028		77,775
				112,856
		Wirelines – 3.3%
	3,000	AT&T Corp., 8.000%, 11/15/2031		4,013
	91,000	AT&T, Inc., 5.350%, 9/01/2040, 144A		91,429
	30,000	Bell Canada, MTN, 5.000%, 2/15/2017, (CAD)		31,412
	5,000	Bell Canada, MTN, 6.550%, 5/01/2029, 144A, (CAD)		5,237
	15,000	Bell Canada, MTN, 7.300%, 2/23/2032, (CAD)		16,982
	35,000	Bell Canada, Series M-17, 6.100%, 3/16/2035, (CAD)		35,528
	70,000	BellSouth Telecommunications, Inc., 7.000%, 12/01/2095		79,126
	165,000	Embarq Corp., 7.995%, 6/01/2036		175,433
				439,160
		Total Bonds and Notes
		(Identified Cost $12,380,163)		13,219,216
		Total Investments – 99.3%
		(Identified Cost $12,380,163)(a)		13,219,216
		Other Assets Less Liabilities—0.7%		96,593
		Net Assets – 100.0%	$	13,315,809
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 100.
	(a)	Federal Tax Information:
		At September 30, 2010, the net unrealized appreciation on investments based on a cost of $12,497,046 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	$	773,211
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(51,041	)
		Net unrealized appreciation	$	722,170

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, 2010, the total value of these securities amounted to $167,176 or 1.3% of net assets.
MTN	Medium Term Note
CAD	Canadian Dollar
MXN	Mexican Peso

Industry Summary at September 30, 2010 (Unaudited)

Treasuries	85.0	%
Wirelines	3.3
Other Investments, less than 2% each	11.0
Total Investments	99.3
Other assets less liabilities	0.7
Net Assets	100.0	%

See accompanying notes to financial statements.

57  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Institutional High Income Fund

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – 89.3% of Net Assets
	Non-Convertible Bonds – 69.4%
		ABS Home Equity – 0.0%
$	50,000	New Century Home Equity Loan Trust, Series 2005-2, Class M3, 0.746%, 6/25/2035(b)	$	28,484
		Aerospace & Defense – 0.6%
	135,000	Bombardier, Inc., 7.350%, 12/22/2026, (CAD)		131,557
	2,175,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		2,066,250
				2,197,807
		Airlines – 1.3%
	985,000	Air Canada, 10.125%, 8/01/2015, 144A, (CAD)		971,693
	6,244	American Airlines Pass Through Trust, Series 1993-A6, 8.040%, 9/16/2011		6,244
	160,316	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		156,308
	339,065	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022		363,648
	291,948	Continental Airlines Pass Through Trust, Series 2000-2, Class B, 8.307%, 10/02/2019		294,868
	407,108	Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024		409,143
	461,897	Delta Air Lines, Inc., Series 2007-1, Class C, 8.954%, 8/10/2014		469,981
	1,970,000	United Air Lines, Inc., 9.875%, 8/01/2013, 144A		2,137,450
				4,809,335
		Automotive – 2.9%
	500,000	Cummins, Inc., 6.750%, 2/15/2027		544,715
	150,000	FCE Bank PLC, EMTN, 4.625%, 10/25/2010, (NOK)		25,413
	150,000	FCE Bank PLC, EMTN, 7.125%, 1/16/2012, (EUR)		211,133
	15,000	Ford Motor Co., 6.375%, 2/01/2029		13,875
	20,000	Ford Motor Co., 6.500%, 8/01/2018		20,350
	95,000	Ford Motor Co., 6.625%, 2/15/2028		90,013
	1,945,000	Ford Motor Co., 6.625%, 10/01/2028		1,842,888
	230,000	Ford Motor Co., 7.125%, 11/15/2025		224,825
	1,905,000	Ford Motor Co., 7.450%, 7/16/2031		1,985,962
	40,000	Ford Motor Co., 7.500%, 8/01/2026		40,000
	1,630,000	Ford Motor Credit Co. LLC, 8.000%, 6/01/2014		1,782,441

Principal Amount (‡)		Description	Value (†)
		Automotive – continued
$	940,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016	$	1,062,549
	1,188,000	Ford Motor Credit Co. LLC, 8.700%, 10/01/2014		1,332,786
	2,090,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		1,922,800
				11,099,750
		Banking – 1.3%
	10,477,600,000	BNP Paribas SA, EMTN, Zero Coupon, 6/13/2011, 144A, (IDR)		1,127,002
	5,376,000,000	JPMorgan Chase & Co., Zero Coupon, 3/28/2011, 144A, (IDR)		586,873
	18,504,768,000	JPMorgan Chase & Co., EMTN, Zero Coupon, 3/28/2011, 144A, (IDR)		2,020,078
	9,533,078,500	JPMorgan Chase London, EMTN, Zero Coupon, 10/21/2010, 144A, (IDR)		1,063,005
				4,796,958
		Building Materials – 1.7%
	440,000	Masco Corp., 5.850%, 3/15/2017		430,483
	750,000	Masco Corp., 6.125%, 10/03/2016		762,465
	670,000	Masco Corp., 6.500%, 8/15/2032		575,013
	1,225,000	Owens Corning, Inc., 7.000%, 12/01/2036		1,233,656
	3,250,000	USG Corp., 6.300%, 11/15/2016		2,819,375
	620,000	USG Corp., 9.500%, 1/15/2018		608,375
				6,429,367
		Chemicals – 3.0%
	1,824,000	Borden, Inc., 7.875%, 2/15/2023		1,386,240
	2,641,000	Borden, Inc., 9.200%, 3/15/2021		2,192,030
	2,558,000	Hercules, Inc., 6.500%, 6/30/2029		2,091,165
	475,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 8.875%, 2/01/2018		465,500
	2,920,000	Hexion US Finance Corp./Hexion Nova Scotia Finance ULC, 9.750%, 11/15/2014		3,036,800
	2,770,000	Reichhold Industries, Inc., 9.000%, 8/15/2014, 144A(c)		2,389,125
				11,560,860
		Collateralized Mortgage Obligations –  0.2%
	829,728	Banc of America Funding Corp., Series 2007-8, Class 4A1, 6.000%, 8/25/2037		738,617

See accompanying notes to financial statements.

|  58

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Institutional High Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Collateralized Mortgage Obligations – continued
$	202,745	WaMu Mortgage Pass Through Certificates, Series 2007-OA6, Class 2A, 3.003%, 7/25/2047(b)	$	123,516
				862,133
		Commercial Mortgage-Backed Securities – 0.4%
	571,467	Banc of America Alternative Loan Trust, Series 2007-1, Class 2A1, 5.791%, 4/25/2037(b)		405,785
	555,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		556,253
	94,488	GSR Mortgage Loan Trust, Series 2005-AR2, Class 2A1, 3.097%, 4/25/2035(b)		83,082
	415,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A4, 5.817%, 6/15/2049(b)		428,804
	205,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3, 5.420%, 1/15/2049		213,285
				1,687,209
		Construction Machinery – 2.1%
	295,000	RSC Equipment Rental, Inc./RSC Holdings III LLC, 9.500%, 12/01/2014		305,694
	1,200,000	Terex Corp., 8.000%, 11/15/2017		1,201,500
	4,215,000	United Rentals North America, Inc., 7.000%, 2/15/2014		4,215,000
	1,085,000	United Rentals North America, Inc., 7.750%, 11/15/2013		1,098,562
	965,000	United Rentals North America, Inc., 10.875%, 6/15/2016		1,089,244
				7,910,000
		Consumer Cyclical Services – 0.0%
	135,000	ServiceMaster Co. (The), 7.100%, 3/01/2018		116,100
	90,000	ServiceMaster Co. (The), 7.450%, 8/15/2027		68,400
				184,500
		Consumer Products – 0.3%
	945,000	Acco Brands Corp., 7.625%, 8/15/2015		907,200
	400,000	Visant Corp., 10.000%, 10/01/2017, 144A		418,000
				1,325,200
		Electric – 2.5%
	645,000	AES Corp. (The), 7.750%, 10/15/2015		690,150
	319,770	AES Ironwood LLC, 8.857%, 11/30/2025		328,564

Principal Amount (‡)		Description	Value (†)
		Electric  – continued
$	100,000	Dynegy Holdings, Inc., 7.125%, 5/15/2018	$	68,250
	490,000	Dynegy Holdings, Inc., 7.625%, 10/15/2026		295,225
	1,250,000	Dynegy Holdings, Inc., 7.750%, 6/01/2019		856,250
	250,000	Dynegy Holdings, Inc., 8.375%, 5/01/2016		195,000
	315,854	Midwest Generation LLC, Series B, 8.560%, 1/02/2016		312,301
	1,685,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027(c)		808,800
	575,000	NRG Energy, Inc., 7.375%, 2/01/2016		591,531
	180,000	NRG Energy, Inc., 8.500%, 6/15/2019		189,675
	714,375	Quezon Power Philippines Co., 8.860%, 6/15/2017		739,378
	1,025,000	RRI Energy, Inc., 7.875%, 6/15/2017		955,812
	2,090,000	Texas Competitive Electric Holdings Co. LLC, Series A, 10.250%, 11/01/2015		1,368,950
	920,000	TXU Corp., Series P, 5.550%, 11/15/2014		492,200
	1,515,000	TXU Corp., Series Q, 6.500%, 11/15/2024		579,488
	420,000	TXU Corp., Series R, 6.550%, 11/15/2034		159,600
	1,000,000	White Pine Hydro Portfolio LLC, 7.260%, 7/20/2015(c)		907,700
				9,538,874
		Food & Beverage – 0.2%
	475,000	ARAMARK Corp., 5.000%, 6/01/2012		476,188
	255,000	Smithfield Foods, Inc., 7.750%, 7/01/2017		258,506
				734,694
		Government Owned – No Guarantee – 0.1%
	400,000	DP World Ltd., 6.850%, 7/02/2037, 144A		374,115
		Healthcare – 4.9%
	1,135,000	Gentiva Health Services, Inc., 11.500%, 9/01/2018, 144A		1,211,612
	410,000	HCA, Inc., 5.750%, 3/15/2014		404,363
	30,000	HCA, Inc., 6.250%, 2/15/2013		30,525
	560,000	HCA, Inc., 6.375%, 1/15/2015		558,600
	550,000	HCA, Inc., 6.500%, 2/15/2016		550,000
	20,000	HCA, Inc., 6.750%, 7/15/2013		20,400
	1,020,000	HCA, Inc., 7.050%, 12/01/2027		897,600
	965,000	HCA, Inc., 7.190%, 11/15/2015		945,700
	865,000	HCA, Inc., 7.500%, 12/15/2023		813,100

See accompanying notes to financial statements.

59  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Institutional High Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Healthcare – continued
$	4,240,000	HCA, Inc., 7.500%, 11/06/2033	$	3,890,200
	1,370,000	HCA, Inc., 7.690%, 6/15/2025		1,280,950
	375,000	HCA, Inc., 8.360%, 4/15/2024		367,500
	560,000	HCA, Inc., MTN, 7.580%, 9/15/2025		520,800
	1,520,000	HCA, Inc., MTN, 7.750%, 7/15/2036		1,398,400
	6,694,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		5,422,140
	300,000	Tenet Healthcare Corp., 9.250%, 2/01/2015		322,125
				18,634,015
		Home Construction – 0.9%
	185,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2015		138,750
	1,068,000	K. Hovnanian Enterprises, Inc., 6.250%, 1/15/2016		694,200
	425,000	K. Hovnanian Enterprises, Inc., 6.375%, 12/15/2014		306,000
	272,000	K. Hovnanian Enterprises, Inc., 6.500%, 1/15/2014		204,000
	755,000	K. Hovnanian Enterprises, Inc., 7.500%, 5/15/2016		498,300
	10,000	K. Hovnanian Enterprises, Inc., 7.750%, 5/15/2013		8,837
	1,260,000	KB Home, 7.250%, 6/15/2018		1,181,250
	400,000	Pulte Group, Inc., 6.000%, 2/15/2035		300,000
				3,331,337
		Independent Energy – 1.6%
	250,000	Chesapeake Energy Corp., 6.250%, 1/15/2017, (EUR)		345,925
	1,110,000	Chesapeake Energy Corp., 6.500%, 8/15/2017		1,151,625
	1,415,000	Chesapeake Energy Corp., 6.875%, 11/15/2020		1,499,900
	704,000	Connacher Oil and Gas Ltd., 10.250%, 12/15/2015, 144A		714,560
	910,000	Pioneer Natural Resources Co., 6.875%, 5/01/2018		973,985
	920,000	Pioneer Natural Resources Co., 7.200%, 1/15/2028		948,601
	415,000	Swift Energy Co., 7.125%, 6/01/2017		410,850
				6,045,446
		Life Insurance – 0.6%
	1,810,000	MetLife, Inc., 10.750%, 8/01/2069		2,348,475
		Local Authorities – 4.3%
	12,200,000	Province of Ontario, Canada, 4.200%, 3/08/2018, (CAD)		12,719,588

Principal Amount (‡)		Description	Value (†)
		Local Authorities – continued
	4,720,000	Queensland Treasury Corp., 7.125%, 9/18/2017, 144A, (NZD)	$	3,829,664
				16,549,252
		Media Non-Cable – 0.1%
	440,000	Clear Channel Communications, Inc., 5.000%, 3/15/2012		415,800
		Metals & Mining – 2.5%
	1,245,000	Algoma Acquisition Corp., 9.875%, 6/15/2015, 144A		1,109,606
	4,740,000	United States Steel Corp., 6.050%, 6/01/2017		4,698,525
	2,020,000	United States Steel Corp., 6.650%, 6/01/2037		1,792,750
	2,035,000	United States Steel Corp., 7.000%, 2/01/2018		2,075,700
				9,676,581
		Non-Captive Consumer – 2.9%
	900,000	American General Finance Corp., MTN, 5.750%, 9/15/2016		717,750
	1,100,000	American General Finance Corp., MTN, 5.850%, 6/01/2013		1,014,750
	300,000	American General Finance Corp., MTN, 5.900%, 9/15/2012		286,500
	800,000	American General Finance Corp., MTN, 6.900%, 12/15/2017		668,000
	500,000	American General Finance Corp., Series H, MTN, 5.375%, 10/01/2012		473,125
	700,000	American General Finance Corp., Series I, MTN, 4.875%, 7/15/2012		661,500
	4,350,000	Residential Capital LLC, 9.625%, 5/15/2015		4,382,625
	750,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		718,998
	115,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		91,714
	2,020,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		2,040,329
				11,055,291
		Non-Captive Diversified – 5.7%
	23,000	Ally Financial, Inc., 6.625%, 12/17/2010		23,144
	149,000	Ally Financial, Inc., 6.750%, 12/01/2014		155,239
	94,000	Ally Financial, Inc., 6.875%, 8/28/2012		98,113
	314,000	Ally Financial, Inc., 7.500%, 12/31/2013		333,625
	585,000	Ally Financial, Inc., 8.000%, 12/31/2018		601,087
	208,000	Ally Financial, Inc., 8.000%, 11/01/2031		223,080
	2,955,000	Ally Financial, Inc., 8.300%, 2/12/2015, 144A		3,220,950

See accompanying notes to financial statements.

|  60

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Institutional High Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Non-Captive Diversified – continued
$	596,573	CIT Group, Inc., 7.000%, 5/01/2013	$	599,556
	894,866	CIT Group, Inc., 7.000%, 5/01/2014		892,629
	894,866	CIT Group, Inc., 7.000%, 5/01/2015		888,155
	2,021,450	CIT Group, Inc., 7.000%, 5/01/2016		1,991,128
	5,013,031	CIT Group, Inc., 7.000%, 5/01/2017		4,906,504
	3,035,000	General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		2,297,319
	250,000	General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)		190,909
	375,000	International Lease Finance Corp., 4.750%, 1/13/2012		375,000
	455,000	International Lease Finance Corp., 5.000%, 9/15/2012		452,725
	1,245,000	International Lease Finance Corp., 5.125%, 11/01/2010		1,245,000
	320,000	International Lease Finance Corp., Series Q, MTN, 5.250%, 1/10/2013		315,600
	820,000	International Lease Finance Corp., Series R, MTN, 6.625%, 11/15/2013		822,050
	65,000	iStar Financial, Inc., 5.500%, 6/15/2012		54,600
	100,000	iStar Financial, Inc., 5.650%, 9/15/2011		90,500
	20,000	iStar Financial, Inc., 5.875%, 3/15/2016		15,125
	20,000	iStar Financial, Inc., 6.050%, 4/15/2015		15,200
	1,770,000	iStar Financial, Inc., 8.625%, 6/01/2013		1,442,550
	70,000	iStar Financial, Inc., Series B, 5.700%, 3/01/2014		54,338
	565,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		447,762
				21,751,888
		Oil Field Services – 0.1%
	210,000	Parker Drilling Co., 9.125%, 4/01/2018, 144A		213,150
		Packaging – 0.4%
	1,555,000	Owens-Illinois, Inc., 7.800%, 5/15/2018		1,667,738
		Paper – 2.6%
	1,240,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		1,274,100
	3,620,000	Georgia-Pacific LLC, 7.750%, 11/15/2029		3,801,000
	1,270,000	Georgia-Pacific LLC, 8.000%, 1/15/2024		1,425,575
	2,930,000	Georgia-Pacific LLC, 8.875%, 5/15/2031		3,340,200
				9,840,875

Principal Amount (‡)		Description	Value (†)
		Pharmaceuticals – 0.6%
$	1,890,000	Valeant Pharmaceuticals International, 8.375%, 6/15/2016	$	2,192,400
		Pipelines – 1.9%
	1,430,000	El Paso Corp., 6.950%, 6/01/2028		1,348,462
	1,055,000	El Paso Corp., 7.420%, 2/15/2037		1,006,001
	2,210,000	El Paso Corp., GMTN, 7.750%, 1/15/2032		2,294,773
	550,000	El Paso Corp., GMTN, 7.800%, 8/01/2031		570,828
	1,105,000	El Paso Corp., GMTN, 8.050%, 10/15/2030		1,151,277
	1,000,000	Transportadora de Gas del Sur SA, 7.875%, 5/14/2017, 144A		977,500
				7,348,841
		Property & Casualty Insurance – 0.1%
	940,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A		423,000
		Railroads – 0.1%
	314,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(c)		227,933
	30,000	Missouri Pacific Railroad Co., Series A, 4.750%, 1/01/2020(c)		29,700
				257,633
		REITs – Office Property – 0.1%
	470,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		483,412
		Retailers – 3.5%
	430,000	Dillard’s, Inc., 6.625%, 1/15/2018		414,950
	450,000	Dillard’s, Inc., 7.000%, 12/01/2028		393,750
	750,000	Dillard’s, Inc., 7.130%, 8/01/2018		733,125
	1,570,000	Dillard’s, Inc., 7.750%, 7/15/2026		1,436,550
	1,679,000	Foot Locker, Inc., 8.500%, 1/15/2022		1,582,457
	3,494,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		3,459,060
	295,000	Macy’s Retail Holdings, Inc., 7.000%, 2/15/2028		306,800
	5,185,000	Toys R Us, Inc., 7.375%, 10/15/2018		4,951,675
	197,000	Toys R Us, Inc., 7.875%, 4/15/2013		205,373
				13,483,740
		Sovereigns – 4.8%
	1,881,000,000	Indonesia Treasury Bond, Series FR43, 10.250%, 7/15/2022, (IDR)		248,121

See accompanying notes to financial statements.

61  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Institutional High Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Sovereigns – continued
	24,214,000,000	Indonesia Treasury Bond, Series FR44, 10.000%, 9/15/2024, (IDR)	$	3,145,598
	6,561,000,000	Indonesia Treasury Bond, Series FR52, 10.500%, 8/15/2030, (IDR)		878,294
	4,897,000,000	Indonesia Treasury Bond, Series ZC3, Zero Coupon, 11/20/2012, (IDR)		479,457
	3,175,000	Ireland Government Bond, 4.500%, 10/18/2018, (EUR)		3,804,593
	175,000	Ireland Government Bond, 5.000%, 10/18/2020, (EUR)		209,594
	850,000	Ireland Government Bond, 5.400%, 3/13/2025, (EUR)		1,000,360
	208,681(††)	Mexican Fixed Rate Bonds, Series M-10, 7.250%, 12/15/2016, (MXN)		1,776,371
	95,000(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		857,376
	180,000(††)	Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012, (MXN)		1,540,427
	700,000	Portugal Obrigacoes do Tesouro OT, 3.850%, 4/15/2021, (EUR)		774,967
	175,000	Portugal Obrigacoes do Tesouro OT, 4.800%, 6/15/2020, (EUR)		212,834
	4,170,000	Republic of Brazil, 10.250%, 1/10/2028, (BRL)		2,751,658
	49,000,000	Republic of Iceland, 7.250%, 5/17/2013, (ISK)		261,943
	51,465,000	Republic of Iceland, 8.000%, 7/22/2011, (ISK)		262,259
	34,275,000	Republic of Iceland, 13.750%, 12/10/2010, (ISK)		172,896
				18,376,748
		Supermarkets – 0.9%
	110,000	American Stores Co., 8.000%, 6/01/2026		92,537
	1,865,000	American Stores Co., Series B, MTN, 7.100%, 3/20/2028		1,436,050
	1,525,000	New Albertson’s, Inc., 7.450%, 8/01/2029		1,235,250
	480,000	New Albertson’s, Inc., 8.000%, 5/01/2031		391,200
	180,000	New Albertson’s, Inc., 8.700%, 5/01/2030		158,400
	240,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		175,500
				3,488,937

Principal Amount (‡)		Description	Value (†)
		Supranational – 0.2%
	1,639,380,000	European Investment Bank, EMTN, Zero Coupon, 4/24/2013, 144A, (IDR)	$	158,189
	8,600,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 5/20/2013, (IDR)		791,296
				949,485
		Technology – 3.1%
	90,000	Advanced Micro Devices, Inc., 7.750%, 8/01/2020, 144A		92,925
	6,580,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		4,786,950
	3,055,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		2,207,238
	801,000	Corning, Inc., 6.850%, 3/01/2029		921,072
	960,000	Eastman Kodak Co., 7.250%, 11/15/2013		921,600
	60,000	Freescale Semiconductor, Inc., 8.875%, 12/15/2014		59,925
	210,000	Freescale Semiconductor, Inc., 10.125%, 12/15/2016		191,100
	190,000	Motorola, Inc., 6.500%, 9/01/2025		206,775
	700,000	Motorola, Inc., 6.500%, 11/15/2028		743,236
	70,000	Motorola, Inc., 6.625%, 11/15/2037		74,856
	2,275,000	Nortel Networks Capital Corp., 7.875%, 6/15/2026(d)		1,478,750
	1,000,000	Nortel Networks Ltd., 6.875%, 9/01/2023(d)		275,000
				11,959,427
		Textile – 0.2%
	890,000	Jones Apparel Group, Inc., 6.125%, 11/15/2034		725,350
		Transportation Services – 1.3%
	2,685,000	APL Ltd., 8.000%, 1/15/2024(c)		1,839,225
	305,423	Atlas Air Pass Through Trust, Series 1999-1, Class B, 7.630%, 1/02/2015		262,664
	1,636,794	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 1/02/2014		1,554,954
	289,324	Atlas Air Pass Through Trust, Series 1998-1, Class C, 8.010%, 7/02/2011(e)		235,799
	399,542	Atlas Air Pass Through Trust, Series 1999-1, Class C, 8.770%, 1/02/2011(e)		325,626
	40,344	Atlas Air Pass Through Trust, Series 2000-1, Class C, 9.702%, 7/02/2011(e)		33,889
	740,000	Teekay Corp., 8.500%, 1/15/2020		805,675
				5,057,832

See accompanying notes to financial statements.

|  62

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Institutional High Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Treasuries – 1.0%
	3,935,000	Canadian Government, 2.000%, 9/01/2012, (CAD)	$	3,869,716
	197,569	Hellenic Republic Government Bond, 2.300%, 7/25/2030, (EUR)		131,389
				4,001,105
		Wireless – 1.8%
	805,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		800,975
	225,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		226,406
	1,995,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		2,004,975
	1,525,000	Sprint Capital Corp., 6.875%, 11/15/2028		1,395,376
	1,155,000	Sprint Capital Corp., 6.900%, 5/01/2019		1,160,775
	215,000	Sprint Capital Corp., 8.750%, 3/15/2032		225,750
	1,170,000	True Move Co. Ltd., 10.750%, 12/16/2013, 144A		1,243,125
				7,057,382
		Wirelines – 6.6%
	410,000	Axtel SAB de CV, 9.000%, 9/22/2019, 144A		378,225
	385,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		292,600
	760,000	Cincinnati Bell, Inc., 8.750%, 3/15/2018		741,000
	5,334,157	FairPoint Communications, Inc., 13.125%, 4/02/2018(d)		393,394
	3,180,000	Frontier Communications Corp., 7.875%, 1/15/2027		3,211,800
	2,330,000	Frontier Communications Corp., 9.000%, 8/15/2031		2,484,363
	50,000	Hawaiian Telcom Communications, Inc., Series B, 12.500%, 5/01/2015(d)		5
	590,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		525,100
	1,675,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		1,574,500
	1,439,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,439,000
	800,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		752,000
	1,385,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		1,398,850
	5,332,000	Qwest Capital Funding, Inc., 7.750%, 2/15/2031		5,385,320
	210,000	Qwest Corp., 6.500%, 6/01/2017		229,425
	1,936,000	Qwest Corp., 6.875%, 9/15/2033		1,911,800
	1,500,000	Qwest Corp., 7.200%, 11/10/2026		1,500,000
	645,000	Qwest Corp., 7.250%, 9/15/2025		677,250

Principal Amount (‡)		Description	Value (†)
		Wirelines – continued
$	1,407,000	Qwest Corp., 7.250%, 10/15/2035	$	1,392,930
	985,000	Qwest Corp., 7.500%, 6/15/2023		989,924
				25,277,486
		Total Non-Convertible Bonds
		(Identified Cost $234,038,365)		266,151,912
	Convertible Bonds – 19.8%
		Airlines – 0.3%
	840,000	AMR Corp., 6.250%, 10/15/2014		816,900
	175,000	UAL Corp., 4.500%, 6/30/2021		175,700
				992,600
		Automotive – 1.4%
	3,530,000	Ford Motor Co., 4.250%, 11/15/2016		5,268,525
		Construction Machinery – 0.0%
	40,000	United Rentals North America, Inc., 1.875%, 10/15/2023		39,800
		Diversified Manufacturing – 1.2%
	3,420,000	Owens-Brockway Glass Container, Inc., 3.000%, 6/01/2015, 144A		3,351,600
	1,365,000	Trinity Industries, Inc., 3.875%, 6/01/2036		1,235,325
				4,586,925
		Electric – 0.1%
	250,000	CMS Energy Corp., 5.500%, 6/15/2029		335,313
		Healthcare  –  2.7%
	3,325,000	Health Management Associates, Inc., 3.750%, 5/01/2028, 144A		3,512,031
	2,470,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(f)		2,284,750
	345,000	LifePoint Hospitals, Inc., 3.250%, 8/15/2025		336,806
	860,000	LifePoint Hospitals, Inc., 3.500%, 5/15/2014		855,700
	3,833,000	Omnicare, Inc., 3.250%, 12/15/2035		3,296,380
				10,285,667
		Independent Energy – 1.1%
	4,135,000	Chesapeake Energy Corp., 2.250%, 12/15/2038		3,178,781
	1,000,000	Chesapeake Energy Corp., 2.500%, 5/15/2037		870,000
	280,000	Penn Virginia Corp., 4.500%, 11/15/2012		273,000
				4,321,781

See accompanying notes to financial statements.

63  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Institutional High Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Lodging – 0.6%
$	2,514,000	Host Hotels & Resorts, Inc., 2.625%, 4/15/2027, 144A	$	2,451,150
		Media Non-Cable – 0.0%
	61,229	Liberty Media LLC, 3.500%, 1/15/2031		32,604
		Metals & Mining – 1.3%
	1,250,000	Steel Dynamics, Inc., 5.125%, 6/15/2014		1,414,063
	2,280,000	United States Steel Corp., 4.000%, 5/15/2014		3,516,900
				4,930,963
		Pharmaceuticals – 4.5%
	2,215,000	Human Genome Sciences, Inc., 2.250%, 10/15/2011		4,427,231
	3,325,000	Human Genome Sciences, Inc., 2.250%, 8/15/2012		6,097,219
	2,715,000	Kendle International, Inc., 3.375%, 7/15/2012		2,507,981
	2,091,000	Nektar Therapeutics, 3.250%, 9/28/2012		2,127,593
	1,165,000	Valeant Pharmaceuticals International, 4.000%, 11/15/2013		2,226,606
				17,386,630
		Technology – 4.9%
	1,594,000	Advanced Micro Devices, Inc., 6.000%, 5/01/2015		1,568,098
	1,835,000	Alcatel-Lucent USA, Inc., Series B, 2.875%, 6/15/2025		1,662,969
	540,000	Ciena Corp., 0.250%, 5/01/2013		481,950
	2,920,000	Ciena Corp., 0.875%, 6/15/2017		2,127,950
	175,000	Ciena Corp., 4.000%, 3/15/2015		187,906
	5,750,000	Intel Corp., 3.250%, 8/01/2039		6,713,125
	3,020,000	Kulicke & Soffa Industries, Inc., 0.875%, 6/01/2012		2,827,475
	240,000	Micron Technology, Inc., 1.875%, 6/01/2014		213,300
	795,000	Nortel Networks Corp., 2.125%, 4/15/2014(d)		612,150
	1,050,000	Teradyne, Inc., 4.500%, 3/15/2014		2,271,937
				18,666,860
		Textile – 0.0%
	13,000	Dixie Yarns, Inc., 7.000%, 5/15/2012		12,220
		Wireless – 0.3%
	1,280,000	NII Holdings, Inc., 3.125%, 6/15/2012		1,241,600
		Wirelines – 1.4%
	1,955,000	Level 3 Communications, Inc., 3.500%, 6/15/2012		1,849,919

Principal Amount (‡)		Description	Value (†)
		Wirelines – continued
$	590,000	Level 3 Communications, Inc., 5.250%, 12/15/2011	$	590,000
	2,210,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(c)		1,969,662
	1,190,000	Level 3 Communications, Inc., Series B, 7.000%, 3/15/2015(c)		1,060,588
				5,470,169
		Total Convertible Bonds
		(Identified Cost $57,975,039)		76,022,807
	Municipals – 0.1%
		District of Columbia – 0.1%
	540,000	Metropolitan Washington DC Airports Authority, Series D, 8.000%, 10/01/2047 (Identified Cost $540,000)		571,833
		Total Bonds and Notes
		(Identified Cost $292,553,404)		342,746,552
	Bank Loans – 0.2%
		Chemicals – 0.1%
	29,569	Hexion Specialty Chemicals, Inc., Extended Term Loan C2, 4.063%, 5/05/2015(g)		28,228
	153,949	Hexion Specialty Chemicals, Inc., Extended Term Loan C1, 4.313%, 5/05/2015(g)		146,972
				175,200
		Media Non-Cable – 0.0%
	25,600	Tribune Company, Term Loan X, 5.000%, 6/04/2009(d)(g)(h)		16,224
		Printing & Publishing – 0.0%
	188,048	SuperMedia, Inc., Exit Term Loan, 11.000%, 12/31/2015(g)		146,584
		Wirelines – 0.1%
	80,000	FairPoint Communications, Inc., Initial Term Loan A, 4.750%, 3/31/2014(d)(g)		51,750
	160,000	FairPoint Communications, Inc., Initial Term Loan B, 5.000%, 3/31/2015(d)(g)		103,163
	160,923	Hawaiian Telcom Communications, Inc., New Tranche C Term Loan, 4.750%, 5/30/2014(g)(i)		122,704
	70,000	Level 3 Financing, Inc., Tranche A Term Loan, 2.700%, 3/13/2014(g)		63,775
				341,392
		Total Bank Loans
		(Identified Cost $758,363)		679,400

See accompanying notes to financial statements.

|  64

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Institutional High Income Fund – continued

Shares	Description		Value (†)
Common Stocks – 4.6%
	Biotechnology – 1.5%
165,617	Vertex Pharmaceuticals, Inc.(e)	$	5,725,380
	Containers & Packaging – 0.9%
40,621	Owens-Illinois, Inc.(e)		1,139,825
135,388	Smurfit-Stone Container Corp.(e)		2,487,078
			3,626,903
	Electronic Equipment, Instruments & Components – 0.3%
69,766	Corning, Inc.		1,275,322
	Food Products – 0.0%
3,100	ConAgra Foods, Inc.		68,014
	Household Durables – 0.0%
6,775	KB Home		76,761
	Media – 0.0%
849	Dex One Corp.(e)		10,425
961	SuperMedia, Inc.(e)		10,158
			20,583
	Oil, Gas & Consumable Fuels – 0.1%
2,846	Chesapeake Energy Corp.		64,462
5,965	Repsol YPF SA, Sponsored ADR		153,871
			218,333
	Pharmaceuticals – 0.6%
64,900	Bristol-Myers Squibb Co.		1,759,439
24,929	Valeant Pharmaceuticals International, Inc.		624,472
			2,383,911
	REITs – Apartments – 0.2%
6,185	Apartment Investment & Management Co.		132,235
32,565	Associated Estates Realty Corp.		455,259
			587,494
	REITs – Shopping Centers – 0.0%
7,868	Developers Diversified Realty Corp.		88,279
	Semiconductors & Semiconductor Equipment – 1.0%
190,970	Intel Corp.		3,672,353
	Total Common Stocks
	(Identified Cost $13,916,098)		17,743,333
Preferred Stocks – 2.3%
Non-Convertible Preferred Stocks – 0.6%
	Banking – 0.1%
448	Ally Financial, Inc., Series G, 7.000%, 144A		403,270
	Diversified Financial Services – 0.3%
18,000	Bank of America Corp., 6.375%		417,240
23,925	Citigroup Capital XIII, (fixed rate to 10/30/2015, variable rate thereafter), 7.875%		598,125
			1,015,365

Shares		Description	Value (†)
		Household Durables – 0.1%
	49,194	Hovnanian Enterprises, Inc., 7.625%(e)	$	334,519
		REITs – Industrials – 0.0%
	3,363	ProLogis, Series C, 8.540%		168,150
		Thrifts & Mortgage Finance – 0.1%
	7,075	Countrywide Capital IV, 6.750%		170,437
		Total Non-Convertible Preferred Stocks
		(Identified Cost $1,805,355)		2,091,741
	Convertible Preferred Stocks – 1.7%
		Automotive – 0.8%
	66,808	Ford Motor Co. Capital Trust II, 6.500%		3,200,771
		Capital Markets – 0.0%
	4,000	Newell Financial Trust I, 5.250%		158,250
		Commercial Banks – 0.0%
	138	Wells Fargo & Co., Series L, Class A, 7.500%		138,828
		Diversified Financial Services – 0.1%
	14,200	Sovereign Capital Trust IV, 4.375%		525,400
		Electric Utilities – 0.3%
	17,119	AES Trust III, 6.750%		835,621
	4,150	CMS Energy Trust I, 7.750%(c)(j)		145,250
				980,871
		Machinery – 0.1%
	14,328	United Rentals Trust I, 6.500%		479,988
		Oil, Gas & Consumable Fuels – 0.1%
	6,700	El Paso Energy Capital Trust I, 4.750%		256,275
		REITs – Hotels – 0.0%
	1,100	FelCor Lodging Trust, Inc., Series A, 1.950%(e)		23,595
		Semiconductors & Semiconductor Equipment – 0.3%
	1,150	Lucent Technologies Capital Trust I, 7.750%		931,500
		Total Convertible Preferred Stocks
		(Identified Cost $5,933,380)		6,695,478
		Total Preferred Stocks
		(Identified Cost $7,738,735)		8,787,219
	Closed End Investment Companies – 0.1%
	29,638	Dreyfus High Yield Strategies Fund		132,482
	11,261	DWS High Income Trust		113,736
	31,505	Highland Credit Strategies Fund		230,932
		Total Closed End Investment Companies
		(Identified Cost $690,645)		477,150

See accompanying notes to financial statements.

65  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Institutional High Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Short-Term Investments – 2.6%
$	11,425	Repurchase Agreement with State Street Corporation, dated 9/30/2010 at 0.000% to be repurchased at $11,425 on 10/01/2010 collateralized by $15,000 U.S. Treasury Note, 3.125% due 4/30/2017 valued at $16,427 including accrued interest (Note 2 of Notes to Financial Statements)	$	11,425
	9,857,286	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2010 at 0.000% to be repurchased at $9,857,286 on 10/01/2010 collateralized by $9,745,000 Federal Home Loan Bank, 0.785% due 11/25/2011 valued at $9,818,088; $235,000 Federal National Mortgage Association, 6.625% due 11/15/2010 valued at $242,685 including accrued interest (Note 2 of Notes to Financial Statements)		9,857,286
		Total Short-Term Investments
		(Identified Cost $9,868,711)		9,868,711
		Total Investments – 99.1%
		(Identified Cost $325,525,956)(a)		380,302,365
		Other Assets Less Liabilities—0.9%		3,390,293
		Net Assets – 100.0%	$	383,692,658
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 100.
	(a)	Federal Tax Information:
		At September 30, 2010, the net unrealized appreciation on investments based on a cost of $326,666,879 for federal income tax purposes was as follows:
		Aggregate gross unrealized appreciation for all investments in which there is an excess of value over tax cost	$	64,581,045
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(10,945,559	)
		Net unrealized appreciation	$	53,635,486
	(b)	Variable rate security. Rate as of September 30, 2010 is disclosed.
	(c)	Illiquid security. At September 30, 2010, the value of these securities amounted to $9,377,983 or 2.4% of net assets.
	(d)	The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.
	(e)	Non-income producing security.
	(f)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
	(g)	Variable rate security. Rate shown represents the weighted average rate at September 30, 2010.
	(h)	Issuer has filed for bankruptcy.
	(i)	All or a portion of interest payment is paid-in-kind.
	(j)	Fair valued security by the Fund’s investment adviser. At September 30, 2010 the value of this security amounted to $145,250 or 0.0% of net assets.

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, 2010, the total value of these securities amounted to $38,413,810 or 10.0% of net assets.
ADR	An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs are significantly influenced by trading on exchanges not located in the United States.
ABS	Asset-Backed Securities
EMTN	Euro Medium Term Note
GMTN	Global Medium Term Note
MTN	Medium Term Note
REITs	Real Estate Investment Trusts
BRL	Brazilian Real
CAD	Canadian Dollar
EUR	Euro
IDR	Indonesian Rupiah
ISK	Icelandic Krona
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar

Industry Summary at September 30, 2010 (Unaudited)

Wirelines	8.1	%
Technology	8.0
Healthcare	7.6
Pharmaceuticals	5.7
Non-Captive Diversified	5.7
Automotive	5.1
Sovereigns	4.8
Local Authorities	4.3
Metals & Mining	3.8
Retailers	3.5
Chemicals	3.1
Non-Captive Consumer	2.9
Independent Energy	2.7
Electric	2.6
Paper	2.6
Wireless	2.1
Construction Machinery	2.1
Other Investments, less than 2% each	21.8
Short-Term Investments	2.6
Total Investments	99.1
Other assets less liabilities	0.9
Net Assets	100.0	%

See accompanying notes to financial statements.

|  66

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Intermediate Duration Bond Fund*

Principal Amount		Description	Value (†)
	Bonds and Notes – 96.6% of Net Assets
		ABS Car Loan – 0.8%
$	120,000	Avis Budget Rental Car Funding AESOP LLC, Series 2010-3A, Class A, 4.640%, 5/20/2016, 144A	$	127,758
	160,000	Ford Credit Floorplan Master Owner Trust, Series 2010-5, Class A1, 1.500%, 9/15/2015		160,000
				287,758
		ABS Credit Card – 2.8%
	260,000	BA Credit Card Trust, Series 2008-A5, Class A5, 1.457%, 12/16/2013(b)		262,077
	60,000	Capital One Multi-Asset Execution Trust, Series 2004-A4, Class A4, 0.477%, 3/15/2017(b)		59,391
	315,000	Chase Issuance Trust, Series 2007-A16, Class A16, 0.592%, 6/16/2014(b)		315,545
	150,000	Discover Card Master Trust I, Series 2007-3, Class A2, 0.307%, 10/16/2014(b)		149,335
	140,000	MBNA Credit Card Master Note Trust, Series 2004-A3, Class A3, 0.517%, 8/16/2021(b)		135,804
	110,000	MBNA Credit Card Master Note Trust, Series 2004-B1, Class B1, 4.450%, 8/15/2016		119,201
				1,041,353
		ABS Home Equity – 0.3%
	95,243	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035		88,864
	50,300	GSAMP Trust, Series 2005-WMC3, Class A2B, 0.496%, 12/25/2035(b)		40,392
				129,256
		Aerospace & Defense – 0.9%
	155,000	General Dynamics Corp., 5.250%, 2/01/2014		174,971
	155,000	Goodrich Corp., 4.875%, 3/01/2020		173,003
				347,974
		Airlines – 0.4%
	147,541	Delta Air Lines, Inc., Series A, 7.750%, 6/17/2021		163,771
		Automotive – 0.7%
	235,000	Ford Motor Credit Co. LLC, 7.000%, 10/01/2013		252,126
		Banking – 8.4%
	85,000	American Express Co., 5.500%, 9/12/2016		96,412
	120,000	American Express Co., 6.150%, 8/28/2017		138,156
	330,000	Bank of America Corp., 5.650%, 5/01/2018		349,637

Principal Amount		Description	Value (†)
		Banking – continued
$	150,000	Barclays Bank PLC, 5.000%, 9/22/2016	$	164,119
	360,000	Bear Stearns Cos., Inc. (The), 7.250%, 2/01/2018		438,529
	605,000	Citigroup, Inc., 6.010%, 1/15/2015		665,136
	135,000	Credit Suisse NY, 6.000%, 2/15/2018		149,089
	220,000	Goldman Sachs Group, Inc. (The), 6.150%, 4/01/2018		244,027
	350,000	Merrill Lynch & Co., Inc., 5.450%, 2/05/2013		375,879
	155,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		166,497
	150,000	Royal Bank of Scotland PLC (The), 4.875%, 3/16/2015		157,811
	160,000	Wells Fargo & Co., 3.625%, 4/15/2015		169,657
				3,114,949
		Building Materials – 0.1%
	30,000	Masco Corp., 7.125%, 3/15/2020		30,733
		Chemicals – 0.6%
	125,000	Cytec Industries, Inc., 6.000%, 10/01/2015		140,525
	70,000	RPM International, Inc., 6.125%, 10/15/2019		76,088
				216,613
		Collateralized Mortgage Obligations – 0.7%
	158,403	Countrywide Alternative Loan Trust, Series 2006-J5, Class 4A1, 5.967%, 7/25/2021(b)		122,432
	116,707	Federal Home Loan Mortgage Corp., 5.000%, 8/15/2024		118,064
				240,496
		Commercial Mortgage-Backed Securities – 9.8%
	490,000	Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A2, 5.634%, 4/10/2049		508,877
	255,000	Banc of America Commercial Mortgage, Inc., Series 2007-5, Class A4, 5.492%, 2/10/2051		266,974
	250,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A4, 5.717%, 6/11/2040(b)		271,458
	45,000	Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A4, 5.431%, 10/15/2049		48,653
	265,000	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/2049		274,647
	140,000	Commercial Mortgage Pass Through Certificates, Series 2007-C9, Class A4, 5.815%, 12/10/2049(b)		152,388

See accompanying notes to financial statements.

67  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Intermediate Duration Bond Fund* – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		Commercial Mortgage-Backed Securities – continued
$	250,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C2, Class A3, 5.542%, 1/15/2049	$	250,263
	165,000	Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4, 5.883%, 7/10/2038(b)		180,784
	50,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4, 5.736%, 12/10/2049		52,326
	200,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-CB18, Class A4, 5.440%, 6/12/2047		209,638
	85,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A4, 5.742%, 2/12/2049(b)		93,176
	210,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3, 5.420%, 1/15/2049		218,487
	320,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-1, Class A4, 5.416%, 2/12/2039(b)		354,410
	210,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4, 5.908%, 6/12/2046(b)		233,505
	205,000	Morgan Stanley Capital I, Series 2006-T23, Series A2, 5.739%, 8/12/2041(b)		221,772
	70,000	Morgan Stanley Capital I, Series 2007-HQ13, Class A3, 5.569%, 12/15/2044		69,168
	200,000	Morgan Stanley Capital I, Series 2007-IQ15, Class A4, 5.880%, 6/11/2049(b)		213,916
				3,620,442
		Construction Machinery – 0.5%
	90,000	Caterpillar Financial Services Corp., MTN, 6.125%, 2/17/2014		103,457
	90,000	John Deere Capital Corp., MTN, 4.500%, 4/03/2013		97,269
				200,726
		Consumer Cyclical Services – 0.3%
	100,000	Expedia, Inc., 5.950%, 8/15/2020, 144A		101,125
		Consumer Products – 0.5%
	175,000	Koninklijke (Royal) Philips Electronics NV, 4.625%, 3/11/2013		189,691
		Distributors – 0.1%
	40,000	EQT Corp., 8.125%, 6/01/2019		49,592

Principal Amount		Description	Value (†)
		Diversified Manufacturing – 0.3%
$	100,000	Tyco International Finance SA, 4.125%, 10/15/2014	$	108,843
		Electric – 3.3%
	5,000	Carolina Power & Light Co., 6.500%, 7/15/2012		5,473
	125,000	Consolidated Edison Co. of NY, Inc., 7.125%, 12/01/2018		160,827
	150,000	Duke Energy Corp., 5.625%, 11/30/2012		164,015
	140,000	FPL Group Capital, Inc., 0.818%, 11/09/2012(b)		140,173
	75,000	NiSource Finance Corp., 6.125%, 3/01/2022		84,916
	145,000	NiSource Finance Corp., 7.875%, 11/15/2010		146,003
	165,000	Southern California Edison Co., 5.750%, 3/15/2014		189,611
	115,000	Southern Co., 0.918%, 10/21/2011(b)		115,395
	205,000	Virginia Electric and Power Co., 5.100%, 11/30/2012		223,019
				1,229,432
		Entertainment – 0.9%
	165,000	Time Warner, Inc., 5.875%, 11/15/2016		192,133
	145,000	Walt Disney Co., 5.700%, 7/15/2011		151,291
				343,424
		Environmental – 0.1%
	40,000	Waste Management, Inc., 6.375%, 3/11/2015		46,906
		Food & Beverage – 1.9%
	200,000	Anheuser-Busch Cos., Inc., 6.450%, 9/01/2037		236,636
	100,000	HJ Heinz Finance Co., 6.000%, 3/15/2012		106,661
	175,000	Kellogg Co., 5.125%, 12/03/2012		190,138
	145,000	Kraft Foods, Inc., 6.125%, 8/23/2018		171,351
				704,786
		Government Owned – No Guarantee – 0.9%
	150,000	Federal National Mortgage Association, 5.375%, 6/12/2017		180,247
	150,000	Petrobras International Finance Co., 5.750%, 1/20/2020		166,057
				346,304
		Health Insurance – 1.3%
	180,000	UnitedHealth Group, Inc., 4.875%, 2/15/2013		193,458
	145,000	WellPoint, Inc., 4.350%, 8/15/2020		150,293
	100,000	WellPoint, Inc., 5.250%, 1/15/2016		112,151
	35,000	WellPoint, Inc., 6.000%, 2/15/2014		39,636
				495,538

See accompanying notes to financial statements.

|  68

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Intermediate Duration Bond Fund* – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		Healthcare – 1.7%
$	20,000	Express Scripts, Inc., 6.250%, 6/15/2014	$	22,962
	250,000	Hospira, Inc., 5.550%, 3/30/2012		268,227
	85,000	Life Technologies Corp., 4.400%, 3/01/2015		90,671
	45,000	McKesson Corp., 6.500%, 2/15/2014		51,626
	180,000	Medco Health Solutions, Inc., 2.750%, 9/15/2015		182,835
				616,321
		Hybrid ARMs – 0.5%
	174,101	FHLMC, 2.771%, 1/01/2035(b)		181,648
		Independent Energy – 1.9%
	135,000	Anadarko Petroleum Corp., 6.375%, 9/15/2017		148,764
	125,000	Devon Energy Corp., 5.625%, 1/15/2014		140,414
	80,000	Encana Corp., 6.500%, 5/15/2019		97,927
	15,000	Talisman Energy, Inc., 5.850%, 2/01/2037		15,772
	55,000	Talisman Energy, Inc., 6.250%, 2/01/2038		60,476
	25,000	Talisman Energy, Inc., 7.750%, 6/01/2019		31,912
	5,000	XTO Energy, Inc., 4.900%, 2/01/2014		5,608
	170,000	XTO Energy, Inc., 5.750%, 12/15/2013		195,418
				696,291
		Integrated Energy – 2.0%
	280,000	BP Capital Markets PLC, 3.125%, 10/01/2015		281,471
	170,000	ConocoPhillips, 5.750%, 2/01/2019		203,919
	35,000	Hess Corp., 7.000%, 2/15/2014		40,957
	35,000	Marathon Oil Corp., 6.500%, 2/15/2014		40,191
	160,000	Total Capital SA, 3.000%, 6/24/2015		167,854
				734,392
		Life Insurance – 0.7%
	30,000	Lincoln National Corp., 4.300%, 6/15/2015		31,806
	155,000	MetLife, Inc., 4.750%, 2/08/2021		164,440
	70,000	Unum Group, 5.625%, 9/15/2020		71,918
				268,164
		Lodging – 0.0%
	15,000	Wyndham Worldwide Corp., 5.750%, 2/01/2018		15,048

Principal Amount		Description	Value (†)
		Media Cable – 1.7%
$	160,000	Comcast Corp., 4.950%, 6/15/2016	$	178,368
	215,000	Cox Communications, Inc., 5.450%, 12/15/2014		243,212
	170,000	Time Warner Cable, Inc., 8.250%, 2/14/2014		202,887
				624,467
		Media Non-Cable – 1.4%
	30,000	CBS Corp., 5.750%, 4/15/2020		33,321
	105,000	CBS Corp., 8.875%, 5/15/2019		136,873
	125,000	Reed Elsevier Capital, Inc., 7.750%, 1/15/2014		146,136
	175,000	Thomson Reuters Corp., 5.950%, 7/15/2013		196,472
				512,802
		Metals & Mining – 0.9%
	135,000	ArcelorMittal, 9.850%, 6/01/2019		173,516
	175,000	United States Steel Corp., 6.050%, 6/01/2017		173,469
				346,985
		Mortgage Related – 3.9%
	9,326	FHLMC, 4.500%, 12/01/2019		9,909
	3,662	FHLMC, 5.500%, 3/01/2013		3,941
	5,730	FHLMC, 6.000%, 11/01/2012		5,993
	2,968	FHLMC, 6.500%, 1/01/2024		3,260
	323	FHLMC, 8.000%, 7/01/2025		371
	498,238	FNMA, 4.500%, 4/01/2024		524,463
	801,395	FNMA, 5.500%, with various maturities from 2017 to 2020(c)		868,124
	4,721	FNMA, 6.000%, 9/01/2021		5,119
	1,568	FNMA, 7.500%, 6/01/2016		1,707
	2,136	FNMA, 8.000%, 6/01/2015		2,319
	7,742	GNMA, 6.500%, 12/15/2023		8,605
	1,772	GNMA, 8.500%, 9/15/2022		2,083
	4,988	GNMA, 9.500%, 1/15/2019		5,777
				1,441,671
		Non-Captive Diversified – 1.6%
	530,000	General Electric Capital Corp., MTN, 5.500%, 1/08/2020		579,771

See accompanying notes to financial statements.

69  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Intermediate Duration Bond Fund* – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		Oil Field Services – 0.2%
$	60,000	Rowan Cos., Inc., 5.000%, 9/01/2017	$	61,987
		Pharmaceuticals – 0.5%
	155,000	Eli Lilly & Co., 4.200%, 3/06/2014		170,582
	5,000	Schering-Plough Corp., 5.300%, 12/01/2013		5,633
				176,215
		Pipelines – 1.5%
	170,000	Energy Transfer Partners LP, 6.000%, 7/01/2013		186,452
	150,000	Kinder Morgan Energy Partners LP, MTN, 6.950%, 1/15/2038		170,764
	175,000	Spectra Energy Capital LLC, 5.668%, 8/15/2014		195,437
				552,653
		Property & Casualty Insurance – 0.0%
	15,000	Willis North America, Inc., 7.000%, 9/29/2019		16,489
		Railroads – 1.1%
	175,000	Burlington Northern Santa Fe Corp., 7.000%, 2/01/2014		204,793
	30,000	CSX Corp., 6.150%, 5/01/2037		34,126
	160,000	Union Pacific Corp., 5.750%, 11/15/2017		184,512
				423,431
		Refining – 0.4%
	125,000	Valero Energy Corp., 9.375%, 3/15/2019		159,632
		REITs – Apartments – 0.6%
	36,000	Colonial Realty LP, 4.800%, 4/01/2011		35,756
	165,000	ERP Operating LP, 6.625%, 3/15/2012		176,778
				212,534
		REITs – Shopping Centers – 0.3%
	105,000	Federal Realty Investment Trust, 5.400%, 12/01/2013		114,223
		Retailers – 0.4%
	130,000	Macy’s Retail Holdings, Inc., 5.350%, 3/15/2012		135,525
		Supermarkets – 0.5%
	50,000	Kroger Co., 6.200%, 6/15/2012		54,295
	35,000	Kroger Co., 6.400%, 8/15/2017		41,840
	65,000	Kroger Co., 6.750%, 4/15/2012		70,449
				166,584

Principal Amount		Description	Value (†)
		Technology – 4.2%
$	155,000	Agilent Technologies, Inc., 6.500%, 11/01/2017	$	178,544
	280,000	Cisco Systems, Inc., 2.900%, 11/17/2014		296,973
	95,000	Corning, Inc., 4.250%, 8/15/2020		99,600
	65,000	Equifax, Inc., 7.000%, 7/01/2037		73,713
	230,000	IBM International Group Capital, 5.050%, 10/22/2012		250,110
	175,000	National Semiconductor Corp., 6.600%, 6/15/2017		203,990
	170,000	Oracle Corp., 4.950%, 4/15/2013		187,263
	145,000	Xerox Corp., 4.250%, 2/15/2015		155,686
	80,000	Xerox Corp., 6.400%, 3/15/2016		93,144
				1,539,023
		Tobacco – 1.0%
	115,000	Altria Group, Inc., 9.700%, 11/10/2018		155,664
	185,000	Philip Morris International, Inc., 6.875%, 3/17/2014		218,117
				373,781
		Treasuries – 29.6%
	215,000	U.S. Treasury Bond, 4.375%, 5/15/2040		241,473
	2,585,000	U.S. Treasury Note, 1.125%, 6/30/2011		2,601,963
	1,225,000	U.S. Treasury Note, 1.125%, 12/15/2012		1,242,226
	1,835,000	U.S. Treasury Note, 1.250%, 8/31/2015		1,834,427
	850,000	U.S. Treasury Note, 2.750%, 2/15/2019		881,809
	490,000	U.S. Treasury Note, 3.375%, 11/15/2019		527,860
	1,000,000	U.S. Treasury Note, 3.625%, 2/15/2020		1,096,797
	680,000	U.S. Treasury Note, 4.250%, 8/15/2014		766,753
	640,000	U.S. Treasury Note, 4.500%, 2/15/2016		742,600
	980,000	U.S. Treasury Note, 4.875%, 7/31/2011		1,017,439
				10,953,347
		Wireless – 1.4%
	150,000	America Movil SAB de CV, 3.625%, 3/30/2015		156,231
	5,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		4,975
	170,000	Sprint Nextel Corp., 6.000%, 12/01/2016		167,875
	175,000	Vodafone Group PLC, 5.350%, 2/27/2012		185,353
				514,434

See accompanying notes to financial statements.

|  70

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Intermediate Duration Bond Fund* – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		Wirelines – 3.0%
$	295,000	AT&T, Inc., 5.800%, 2/15/2019	$	351,652
	155,000	Embarq Corp., 7.995%, 6/01/2036		164,800
	260,000	Qwest Corp., 6.875%, 9/15/2033		256,750
	185,000	Telecom Italia Capital SA, 4.950%, 9/30/2014		196,975
	125,000	Telefonica Emisiones SAU, 4.949%, 1/15/2015		136,773
				1,106,950
		Total Bonds and Notes
		(Identified Cost $33,259,236)		35,786,206
	Short-Term Investments – 6.1%
	2,264,300	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2010 at 0.000% to be repurchased at $2,264,300 on 10/01/2010 collateralized by $2,295,000 Federal Home Loan Bank, 0.785% due 11/25/2011 valued at $2,312,213 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $2,264,300)		2,264,300
		Total Investments – 102.7%
		(Identified Cost $35,523,536)(a)		38,050,506
		Other Assets Less Liabilities—(2.7)%		(1,009,282	)
		Net Assets – 100.0%	$	37,041,224
	*	Formerly Loomis Sayles Intermediate Duration Fixed Income Fund.
	(†)	See Note 2 of Notes to Financial Statements.
	(a)	Federal Tax Information:
		At September 30, 2010, the net unrealized appreciation on investments based on a cost of $35,623,252 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	$	2,517,972
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(90,718	)
		Net unrealized appreciation	$	2,427,254

(b)	Variable rate security. Rate as of September 30, 2010 is disclosed.
(c)	The Fund’s investment in mortgage related securities of the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and Government National Mortgage Association are interests in separate pools of mortgages. All separate investments in securities of each issuer which have the same coupon rate have been aggregated for the purpose of presentation in the Portfolio of Investments.
144A	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, 2010, the total value of these securities amounted to $228,883 or 0.6% of net assets.
ABS	Asset-Backed Securities
ARMs	Adjustable Rate Mortgages
FHLMC	Federal Home Loan Mortgage Corp.
FNMA	Federal National Mortgage Association
GNMA	Government National Mortgage Association
MTN	Medium Term Note
REITs	Real Estate Investment Trusts

Industry Summary at September 30, 2010 (Unaudited)

Treasuries	29.6	%
Commercial Mortgage-Backed Securities	9.8
Banking	8.4
Technology	4.2
Mortgage Related	3.9
Electric	3.3
Wirelines	3.0
ABS Credit Card	2.8
Integrated Energy	2.0
Other Investments, less than 2% each	29.6
Short-Term Investments	6.1
Total Investments	102.7
Other assets less liabilities	(2.7	)
Net Assets	100.0	%

See accompanying notes to financial statements.

71  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Investment Grade Fixed Income Fund

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – 98.0% of Net Assets
	Non-Convertible Bonds –  95.3%
		ABS Credit Card – 0.2%
$	1,000,000	World Financial Network Credit Card Master Trust, Series 2010-A, Class B, 6.750%, 4/15/2019	$	1,049,874
		ABS Other – 2.0%
	2,500,000	Community Program Loan Trust, Series 1987-A, Class A5, 4.500%, 4/01/2029		2,405,722
	1,746,371	Sierra Receivables Funding Co., Series 2009-3A, Class A1, 7.620%, 7/20/2026, 144A		1,770,268
	4,108,279	SVO VOI Mortgage Corp., Series 2009-BA, Class NT, 5.810%, 12/20/2028, 144A		4,302,384
	971,479	Trinity Rail Leasing LP, Series 2009-1A, Class A, 6.657%, 11/16/2039, 144A		1,043,955
				9,522,329
		Aerospace & Defense – 0.0%
	165,000	Boeing Capital Corp., 6.500%, 2/15/2012		177,788
		Airlines – 4.6%
	660,787	American Airlines Pass Through Trust, Series 2009-1A, 10.375%, 1/02/2021		779,729
	339,065	Continental Airlines Pass Through Trust, Series 2000-2, Class A-1, 7.707%, 10/02/2022		363,647
	1,075,608	Continental Airlines Pass Through Trust, Series 2007-1, Class A, 5.983%, 10/19/2023		1,110,565
	4,797,892	Continental Airlines Pass Through Trust, Series 2009-1, Class A, 9.000%, 7/08/2016		5,469,597
	2,225,000	Delta Air Lines, Inc., 6.200%, 7/02/2018		2,314,000
	1,990,756	Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024		2,000,710
	5,272,149	Delta Air Lines, Inc., Series A, 7.750%, 6/17/2021		5,852,085
	3,455,000	Qantas Airways Ltd., 6.050%, 4/15/2016, 144A		3,800,569
				21,690,902
		Automotive – 0.9%
	1,930,000	Cummins, Inc., 5.650%, 3/01/2098		1,606,772
	2,665,000	Ford Motor Co., 6.375%, 2/01/2029		2,465,125
	300,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		339,111
				4,411,008

Principal Amount (‡)		Description	Value (†)
		Banking – 7.3%
$	2,670,000	Associates Corp. of North America, 6.950%, 11/01/2018	$	2,947,552
	1,045,000	BAC Capital Trust VI, 5.625%, 3/08/2035		982,325
	230,000	Bank of America Corp., 5.420%, 3/15/2017		235,543
	2,770,000,000	Barclays Bank PLC, EMTN, 3.680%, 8/20/2015, (KRW)		2,442,174
	7,484,000,000	BNP Paribas SA, EMTN, Zero Coupon, 6/13/2011, 144A, (IDR)		805,002
	85,000	Citigroup, Inc., 5.850%, 12/11/2034		85,651
	185,000	Citigroup, Inc., 5.875%, 2/22/2033		177,116
	2,515,000	Citigroup, Inc., 6.125%, 8/25/2036		2,449,570
	2,420,000	Goldman Sachs Group, Inc. (The), 6.750%, 10/01/2037		2,515,409
	870,000	Goldman Sachs Group, Inc. (The), GMTN, 5.375%, 3/15/2020		916,990
	5,376,000,000	JPMorgan Chase & Co., Zero Coupon, 3/28/2011, 144A, (IDR)		586,872
	60,000	JPMorgan Chase & Co., 4.750%, 5/01/2013		65,073
	8,972,574,000	JPMorgan Chase & Co., EMTN, Zero Coupon, 3/28/2011, 144A, (IDR)		979,493
	9,533,078,500	JPMorgan Chase London, EMTN, Zero Coupon, 10/21/2010, 144A, (IDR)		1,063,005
	2,870,000	Merrill Lynch & Co., Inc., 6.110%, 1/29/2037		2,806,056
	235,000	Merrill Lynch & Co., Inc., Series C, MTN, 5.000%, 1/15/2015		250,268
	1,700,000	Merrill Lynch & Co., Inc., Series C, MTN, 6.050%, 6/01/2034		1,746,039
	3,700,000	Morgan Stanley, 5.500%, 7/24/2020		3,811,807
	260,000	Morgan Stanley, EMTN, 5.450%, 1/09/2017		274,198
	1,100,000	Morgan Stanley, Series F, MTN, 5.550%, 4/27/2017		1,165,613
	1,400,000	Morgan Stanley, Series F, MTN, 5.625%, 9/23/2019		1,457,611
	695,000	Morgan Stanley, Series F, MTN, 5.950%, 12/28/2017		746,552
	420,000	National City Bank of Indiana, 4.250%, 7/01/2018		425,925
	300,000	Standard Chartered Bank, 6.400%, 9/26/2017, 144A		335,374
	4,500,000	Standard Chartered PLC, 5.500%, 11/18/2014, 144A		4,968,185
	135,000	Washington Mutual Finance Corp., 6.875%, 5/15/2011		139,668
				34,379,071

See accompanying notes to financial statements.

|  72

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Investment Grade Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Brokerage – 0.8%
$	755,000	Jefferies Group, Inc., 6.250%, 1/15/2036	$	693,217
	2,835,000	Jefferies Group, Inc., 8.500%, 7/15/2019		3,291,744
				3,984,961
		Building Materials – 1.6%
	1,175,000	Masco Corp., 4.800%, 6/15/2015		1,155,501
	730,000	Masco Corp., 5.850%, 3/15/2017		714,211
	1,695,000	Masco Corp., 6.125%, 10/03/2016		1,723,171
	200,000	Masco Corp., 6.500%, 8/15/2032		171,645
	375,000	Masco Corp., 7.750%, 8/01/2029		367,020
	1,235,000	Owens Corning, Inc., 6.500%, 12/01/2016		1,336,114
	2,255,000	Owens Corning, Inc., 7.000%, 12/01/2036		2,270,934
				7,738,596
		Chemicals – 1.4%
	4,450,000	Chevron Phillips Chemical Co. LLC, 8.250%, 6/15/2019, 144A		5,631,987
	980,000	Methanex Corp., Senior Note, 6.000%, 8/15/2015		969,491
				6,601,478
		Collateralized Mortgage Obligations – 0.3%
	675,000	Federal Home Loan Mortgage Corp., Series 2912, Class EH, 5.500%, 1/15/2035		761,656
	333,166	Morgan Stanley Mortgage Loan Trust, Series 2005-3AR, Class 5A, 5.595%, 7/25/2035(b)		304,085
	205,128	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 3A2, 2.862%, 10/25/2035(b)		184,960
				1,250,701
		Commercial Mortgage-Backed Securities – 6.0%
	160,000	Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A4, 5.190%, 9/10/2047(b)		176,150
	600,000	Bear Stearns Commercial Mortgage Securities, Series 2006-PW13, Class A4, 5.540%, 9/11/2041		655,985
	360,000	Bear Stearns Commercial Mortgage Securities, Series 2006-T24, Class A4, 5.537%, 10/12/2041		397,345
	600,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		617,380

Principal Amount (‡)		Description	Value (†)
		Commercial Mortgage-Backed Securities – continued
$	407,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A4, 5.717%, 6/11/2040(b)	$	441,933
	93,491	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD2, Class A2, 5.408%, 1/15/2046		94,188
	980,000	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/2049		1,015,676
	480,000	Commercial Mortgage Pass Through Certificates, Series 2006-C7, Class A4, 5.767%, 6/10/2046(b)		531,852
	3,525,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4, 5.721%, 6/15/2039(b)		3,513,322
	2,030,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 5.805%, 9/15/2039(b)		2,017,768
	685,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		686,546
	3,125,000	Crown Castle Towers LLC, 6.113%, 1/15/2040, 144A		3,452,281
	1,500,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4, 5.736%, 12/10/2049		1,569,791
	805,000	GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, 4.751%, 7/10/2039		865,593
	350,000	GS Mortgage Securities Corp. II, Series 2006-GG8, Class A4, 5.560%, 11/10/2039		372,788
	1,180,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP6, Class A4, 5.475%, 4/15/2043		1,288,421
	1,100,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A4, 5.872%, 4/15/2045(b)		1,219,456
	4,055,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A4, 5.817%, 6/15/2049(b)		4,189,880
	1,405,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3, 5.420%, 1/15/2049		1,461,785
	480,000	LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A5, 4.739%, 7/15/2030		519,359
	380,000	LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class A4, 5.881%, 6/15/2038(b)		418,687

See accompanying notes to financial statements.

73  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Investment Grade Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Commercial Mortgage-Backed Securities – continued
$	390,000	LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A4, 5.372%, 9/15/2039	$	424,334
	235,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4, 5.908%, 6/12/2046(b)		261,304
	350,000	Morgan Stanley Capital I, Series 2005-HQ6, Class A4A, 4.989%, 8/13/2042		379,821
	425,000	Morgan Stanley Capital I, Series 2005-T19, Class A4A, 4.890%, 6/12/2047		462,358
	300,000	Morgan Stanley Capital I, Series 2006-HQ10, Class A4, 5.328%, 11/12/2041		321,371
	800,000	Morgan Stanley Capital I, Series 2008-T29, Class A4, 6.280%, 1/11/2043(b)		912,931
	200,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class A4, 5.308%, 11/15/2048		215,384
				28,483,689
		Consumer Products – 0.3%
	605,000	Hasbro, Inc., 6.600%, 7/15/2028		639,506
	780,000	Snap-on, Inc., 6.700%, 3/01/2019		940,176
				1,579,682
		Distributors – 1.3%
	3,000,000	EQT Corp., 8.125%, 6/01/2019		3,719,406
	2,150,000	Equitable Resources, Inc., 6.500%, 4/01/2018		2,432,914
				6,152,320
		Diversified Manufacturing – 0.4%
	700,000	Textron, Inc., 3.875%, 3/11/2013, (EUR)		947,253
	540,000	Textron, Inc., EMTN, 6.625%, 4/07/2020, (GBP)		855,744
				1,802,997
		Electric – 3.4%
	3,385,000	Ameren Illinois Co., 6.250%, 4/01/2018		3,869,671
	2,800,000	AmerenEnergy Generating Co., Series H, 7.000%, 4/15/2018		2,813,373
	500,000	Baltimore Gas & Electric Co., 5.200%, 6/15/2033		504,087
	1,520,715	Bruce Mansfield Unit, 6.850%, 6/01/2034(c)		1,694,778
	1,185,000	Cleveland Electric Illuminating Co. (The), 5.700%, 4/01/2017		1,315,772

Principal Amount (‡)		Description	Value (†)
		Electric – continued
$	555,000	Commonwealth Edison Co., 4.700%, 4/15/2015	$	620,654
	21,000	Commonwealth Edison Co., 4.750%, 12/01/2011(c)		21,057
	1,000,000	Empresa Nacional de Electricidad SA (Endesa-Chile), 7.875%, 2/01/2027		1,149,231
	2,000,000	NiSource Finance Corp., 6.125%, 3/01/2022		2,264,434
	195,000	NiSource Finance Corp., 6.150%, 3/01/2013		214,240
	1,255,000	NiSource Finance Corp., 6.400%, 3/15/2018		1,455,482
				15,922,779
		Entertainment – 0.6%
	870,000	Time Warner, Inc., 6.625%, 5/15/2029		985,470
	245,000	Time Warner, Inc., 7.625%, 4/15/2031		303,761
	160,000	Time Warner, Inc., 7.700%, 5/01/2032		199,939
	1,325,000	Viacom, Inc., 6.875%, 4/30/2036		1,555,530
				3,044,700
		Financial Other – 1.9%
	2,955,000	Cantor Fitzgerald LP, 6.375%, 6/26/2015, 144A		3,037,199
	2,645,000	Cantor Fitzgerald LP, 7.875%, 10/15/2019, 144A(c)		2,776,801
	2,500,000	National Life Insurance Co., 10.500%, 9/15/2039, 144A		3,038,900
				8,852,900
		Food & Beverage – 0.2%
	500,000	Corn Products International, Inc., 6.625%, 4/15/2037		546,152
	210,000	Kraft Foods, Inc., 6.250%, 6/01/2012		228,186
				774,338
		Government Guaranteed – 0.5%
	2,500,000	Instituto de Credito Oficial, MTN, 6.125%, 2/27/2014, (AUD)		2,301,589
		Government Owned – No Guarantee – 1.5%
	2,565,000	Abu Dhabi National Energy Co., 7.250%, 8/01/2018, 144A		2,868,224
	4,500,000	DP World Ltd., 6.850%, 7/02/2037, 144A		4,208,796
				7,077,020
		Health Insurance – 0.6%
	2,515,000	CIGNA Corp., 6.350%, 3/15/2018		2,957,122
	20,000	CIGNA Corp., 7.875%, 5/15/2027		24,201
	45,000	CIGNA Corp., 8.500%, 5/01/2019		58,074
				3,039,397

See accompanying notes to financial statements.

|  74

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Investment Grade Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Healthcare – 1.4%
$	855,000	Boston Scientific Corp., 6.000%, 1/15/2020	$	911,891
	900,000	Covidien International Finance SA, 6.000%, 10/15/2017		1,070,117
	1,115,000	Express Scripts, Inc., 6.250%, 6/15/2014		1,280,135
	670,000	Express Scripts, Inc., 7.250%, 6/15/2019		842,565
	1,020,000	HCA, Inc., 5.750%, 3/15/2014		1,005,975
	195,000	HCA, Inc., 6.250%, 2/15/2013		198,412
	95,000	HCA, Inc., 6.375%, 1/15/2015		94,763
	55,000	HCA, Inc., 6.500%, 2/15/2016		55,000
	30,000	HCA, Inc., 6.750%, 7/15/2013		30,600
	100,000	HCA, Inc., 7.050%, 12/01/2027		88,000
	190,000	HCA, Inc., 7.190%, 11/15/2015		186,200
	75,000	HCA, Inc., 7.500%, 12/15/2023		70,500
	175,000	HCA, Inc., 7.690%, 6/15/2025		163,625
	305,000	HCA, Inc., 8.360%, 4/15/2024		298,900
	10,000	HCA, Inc., MTN, 7.580%, 9/15/2025		9,300
	305,000	HCA, Inc., MTN, 7.750%, 7/15/2036		280,600
				6,586,583
		Home Construction – 1.4%
	1,116,000	Pulte Group, Inc., 5.200%, 2/15/2015		1,079,730
	3,340,000	Pulte Group, Inc., 6.000%, 2/15/2035		2,505,000
	1,455,000	Pulte Group, Inc., 6.375%, 5/15/2033		1,164,000
	1,725,000	Toll Brothers Finance Corp., 5.150%, 5/15/2015		1,743,223
				6,491,953
		Hybrid ARMs – 0.1%
	191,761	FNMA, 5.706%, 9/01/2036(b)		202,657
	116,841	FNMA, 6.000%, 2/01/2037(b)		124,761
				327,418
		Independent Energy – 0.9%
	1,260,000	Anadarko Petroleum Corp., 5.950%, 9/15/2016		1,375,831
	1,195,000	Anadarko Petroleum Corp., 6.375%, 9/15/2017		1,316,836
	1,320,000	Anadarko Petroleum Corp., 6.450%, 9/15/2036		1,321,588
				4,014,255

Principal Amount (‡)		Description	Value (†)
		Industrial Other – 0.3%
$	1,150,000	Worthington Industries, Inc., 6.500%, 4/15/2020	$	1,273,030
		Life Insurance – 1.0%
	390,000	American International Group, Inc., Series G, MTN, 5.850%, 1/16/2018		403,650
	110,000	American International Group, Inc., Series MP, GMTN, 5.450%, 5/18/2017		111,925
	355,000	ASIF III Jersey Ltd., Series 2003-G, EMTN, 4.750%, 9/11/2013, (EUR)		499,273
	1,095,000	MetLife, Inc., 6.400%, 12/15/2066		1,023,825
	2,885,000	Penn Mutual Life Insurance Co. (The), 7.625%, 6/15/2040, 144A		2,899,901
				4,938,574
		Local Authorities – 1.6%
	4,635,000	Manitoba (Province of), GMTN, 6.375%, 9/01/2015, (NZD)		3,617,460
	325,919	Province of Alberta, 5.930%, 9/16/2016, (CAD)		361,375
	1,185,000	Quebec Province, Series QC, 6.750%, 11/09/2015, (NZD)		939,699
	1,735,000	Queensland Treasury Corp., Series 11G, 6.000%, 6/14/2011, (AUD)		1,690,279
	970,000	Queensland Treasury Corp., 7.125%, 9/18/2017, 144A, (NZD)		787,028
				7,395,841
		Lodging – 0.7%
	1,480,000	Wyndham Worldwide Corp., 6.000%, 12/01/2016		1,543,971
	1,660,000	Wyndham Worldwide Corp., 7.375%, 3/01/2020		1,774,122
				3,318,093
		Media Non-Cable – 0.5%
	240,000	News America Holdings, 8.150%, 10/17/2036		302,284
	1,805,000	News America, Inc., 6.400%, 12/15/2035		2,001,693
				2,303,977
		Mortgage Related – 0.0%
	28,740	Federal National Mortgage Association, 7.000%, 4/25/2020		32,048
	4,500	FHLMC, 10.000%, with various maturities in 2018(d)		5,149
	17,347	FNMA, 6.000%, 12/01/2018		18,806
	51,711	GNMA, 10.000%, with various maturities in 2018(d)		59,516
				115,519
		Non-Captive Consumer – 1.9%
	3,615,000	American General Finance Corp., MTN, 6.900%, 12/15/2017		3,018,525
	45,000	American General Finance Corp., Series H, MTN, 5.375%, 10/01/2012		42,581

See accompanying notes to financial statements.

75  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Investment Grade Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Non-Captive Consumer – continued
$	1,300,000	American General Finance Corp., Series J, MTN, 6.500%, 9/15/2017	$	1,027,000
	470,000	SLM Corp., MTN, 5.050%, 11/14/2014		447,572
	240,000	SLM Corp., Series A, MTN, 5.000%, 4/15/2015		230,079
	995,000	SLM Corp., Series A, MTN, 5.375%, 1/15/2013		1,003,113
	1,295,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		995,818
	2,385,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		2,409,003
				9,173,691
		Non-Captive Diversified – 3.1%
	763,000	Ally Financial, Inc., 6.000%, 12/15/2011		779,214
	41,000	Ally Financial, Inc., 7.500%, 12/31/2013		43,563
	97,000	Ally Financial, Inc., 8.000%, 12/31/2018		99,667
	112,988	CIT Group, Inc., 7.000%, 5/01/2013		113,553
	169,485	CIT Group, Inc., 7.000%, 5/01/2014		169,061
	169,485	CIT Group, Inc., 7.000%, 5/01/2015		168,214
	282,478	CIT Group, Inc., 7.000%, 5/01/2016		278,241
	395,473	CIT Group, Inc., 7.000%, 5/01/2017		387,069
	670,000	General Electric Capital Australia Funding Pty Ltd., EMTN, 8.000%, 2/13/2012, (AUD)		663,644
	65,000	General Electric Capital Corp., 5.625%, 5/01/2018		72,148
	300,000	General Electric Capital Corp., MTN, 5.875%, 1/14/2038		304,686
	470,000	General Electric Capital Corp., Series A, EMTN, 6.750%, 9/26/2016, (NZD)		358,908
	2,205,000	General Electric Capital Corp., Series A, GMTN, 7.625%, 12/10/2014, (NZD)		1,725,637
	655,000	General Electric Capital Corp., Series A, MTN, 0.826%, 5/13/2024(b)		543,155
	5,650,000	General Electric Capital Corp., Series A, MTN, 6.500%, 9/28/2015, (NZD)		4,276,723
	4,355,000	International Lease Finance Corp., 6.375%, 3/25/2013		4,376,775
	25,000	International Lease Finance Corp., 8.625%, 9/15/2015, 144A		26,750
	315,000	International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		305,550
				14,692,558

Principal Amount (‡)		Description	Value (†)
		Oil Field Services – 0.4%
$	1,090,000	Rowan Cos., Inc., 7.875%, 8/01/2019	$	1,300,918
	235,000	Weatherford International Ltd., 6.500%, 8/01/2036		237,625
	105,000	Weatherford International Ltd., 6.800%, 6/15/2037		110,051
				1,648,594
		Paper – 0.4%
	1,500,000	Georgia-Pacific LLC, 7.250%, 6/01/2028		1,541,250
	200,000	Westvaco Corp., 8.200%, 1/15/2030		218,741
				1,759,991
		Pharmaceuticals – 0.0%
	170,000	Elan Finance PLC/Elan Finance Corp., 8.875%, 12/01/2013		174,250
		Pipelines – 2.3%
	335,000	CenterPoint Energy Resources Corp., 6.250%, 2/01/2037		377,900
	635,000	DCP Midstream LP, 6.450%, 11/03/2036, 144A		691,187
	350,000	El Paso Corp., 6.950%, 6/01/2028		330,043
	680,000	Enterprise Products Operating LLP, 6.300%, 9/15/2017		784,314
	200,000	Florida Gas Transmission Co., 7.900%, 5/15/2019, 144A		251,019
	145,000	Kinder Morgan Energy Partners LP, 5.125%, 11/15/2014		160,197
	5,300,000	Kinder Morgan Energy Partners LP, 5.950%, 2/15/2018		5,985,682
	965,000	NGPL PipeCo LLC, 7.119%, 12/15/2017, 144A		1,047,025
	810,000	Southern Natural Gas Co., 5.900%, 4/01/2017, 144A		889,090
	230,000	Spectra Energy Capital LLC, 5.500%, 3/01/2014		250,995
				10,767,452
		Property & Casualty Insurance – 2.4%
	1,695,000	Hanover Insurance Group, Inc. (The), 7.500%, 3/01/2020		1,886,294
	65,000	Marsh & McLennan Cos., Inc., 5.375%, 7/15/2014		70,202
	1,842,000	Marsh & McLennan Cos., Inc., 5.750%, 9/15/2015		2,037,442
	2,465,000	Marsh & McLennan Cos., Inc., 5.875%, 8/01/2033		2,396,902
	60,000	MBIA Insurance Corp., (fixed rate to 1/15/2013, variable rate thereafter), 14.000%, 1/15/2033, 144A		27,000
	150,000	Progressive Corp., 7.000%, 10/01/2013		167,610
	100,000	White Mountains Re Group Ltd., 6.375%, 3/20/2017, 144A		101,091
	120,000	Willis North America, Inc., 6.200%, 3/28/2017		127,869
	805,000	Willis North America, Inc., 7.000%, 9/29/2019		884,886
	2,015,000	XL Group PLC, 6.250%, 5/15/2027		2,027,269

See accompanying notes to financial statements.

|  76

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Investment Grade Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Property & Casualty Insurance –  continued
$	1,595,000	XL Group PLC, 6.375%, 11/15/2024	$	1,657,443
				11,384,008
		Railroads – 0.9%
	2,500,000	Canadian Pacific Railway Co., 7.250%, 5/15/2019		3,093,610
	670,000	CSX Corp., 6.250%, 3/15/2018		795,417
	44,000	CSX Corp., MTN, 6.000%, 10/01/2036		49,054
	190,000	Missouri Pacific Railroad Co., 5.000%, 1/01/2045(c)		137,921
				4,076,002
		Refining – 0.9%
	3,500,000	Valero Energy Corp., 9.375%, 3/15/2019		4,469,700
		REITs – Apartments – 0.4%
	365,000	Camden Property Trust, 5.000%, 6/15/2015		392,739
	780,000	Camden Property Trust, 5.700%, 5/15/2017		828,138
	531,000	Colonial Realty LP, 4.800%, 4/01/2011		527,411
	30,000	ERP Operating LP, 5.125%, 3/15/2016		32,849
	180,000	ERP Operating LP, 5.750%, 6/15/2017		202,690
				1,983,827
		REITs – Diversified – 0.0%
	90,000	Duke Realty LP, 5.950%, 2/15/2017		96,560
		REITs – Industrials – 0.3%
	55,000	ProLogis, 5.625%, 11/15/2015		53,808
	240,000	ProLogis, 5.625%, 11/15/2016		231,059
	265,000	ProLogis, 5.750%, 4/01/2016		261,615
	785,000	ProLogis, 7.375%, 10/30/2019		792,203
				1,338,685
		REITs – Office – 0.3%
	80,000	Highwoods Properties, Inc., 5.850%, 3/15/2017		82,283
	1,075,000	Highwoods Properties, Inc., 7.500%, 4/15/2018		1,203,812
				1,286,095
		REITs – Regional Malls – 0.4%
	475,000	Simon Property Group LP, 5.750%, 12/01/2015		540,899
	740,000	Simon Property Group LP, 5.875%, 3/01/2017		850,057
	360,000	Simon Property Group LP, 6.100%, 5/01/2016		418,289
				1,809,245

Principal Amount (‡)		Description	Value (†)
		REITs – Shopping Centers – 0.5%
$	1,000,000	Equity One, Inc., 6.000%, 9/15/2017	$	1,032,838
	1,350,000	Federal Realty Investment Trust, 5.650%, 6/01/2016		1,497,351
				2,530,189
		REITs – Triple Net Lease – 0.1%
	95,000	Realty Income Corp., 5.750%, 1/15/2021		100,707
	405,000	Realty Income Corp., 6.750%, 8/15/2019		464,262
				564,969
		Restaurants – 0.1%
	610,000	Darden Restaurants, Inc., 6.000%, 8/15/2035		610,730
		Retailers – 0.6%
	118,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		113,870
	2,803,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037		2,774,970
				2,888,840
		Sovereigns – 4.3%
	1,775,000	Ireland Government Bond, 4.500%, 10/18/2018, (EUR)		2,126,977
	100,000	Ireland Government Bond, 5.000%, 10/18/2020, (EUR)		119,768
	475,000	Ireland Government Bond, 5.400%, 3/13/2025, (EUR)		559,025
	262,000(††)	Mexican Fixed Rate Bonds, Series M-10, 7.250%, 12/15/2016, (MXN)		2,230,243
	140,000(††)	Mexican Fixed Rate Bonds, Series M-20, 8.000%, 12/07/2023, (MXN)		1,263,501
	227,000(††)	Mexican Fixed Rate Bonds, Series MI-10, 9.000%, 12/20/2012, (MXN)		1,942,649
	2,625,000	New South Wales Treasury Corp., Series 10RG, 7.000%, 12/01/2010, (AUD)		2,545,436
	685,000	New South Wales Treasury Corp., Series 12RG, 6.000%, 5/01/2012, (AUD)		671,843
	4,000,000	New South Wales Treasury Corp., Series 17RG, 5.500%, 3/01/2017, (AUD)		3,901,451
	400,000	Portugal Obrigacoes do Tesouro OT, 3.850%, 4/15/2021, (EUR)		442,838
	100,000	Portugal Obrigacoes do Tesouro OT, 4.800%, 6/15/2020, (EUR)		121,620
	3,100,000	Republic of Croatia, 6.750%, 11/05/2019, 144A		3,386,750
	101,800,000	Republic of Iceland, 7.250%, 5/17/2013, (ISK)		544,199
	54,600,000	Republic of Iceland, 8.000%, 7/22/2011, (ISK)		278,235
	66,380,000	Republic of Iceland, 13.750%, 12/10/2010, (ISK)		334,846
				20,469,381

See accompanying notes to financial statements.

77  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Investment Grade Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Supranational – 2.1%
	4,000,000	European Bank for Reconstruction & Development, GMTN, 9.250%, 9/10/2012, (BRL)	$	2,379,432
	45,300,000,000	Inter-American Development Bank, EMTN, Zero Coupon, 9/23/2013, (IDR)		4,053,906
	4,375,000	Inter-American Development Bank, EMTN, 6.000%, 12/15/2017, (NZD)		3,421,819
				9,855,157
		Technology – 3.8%
	1,970,000	Avnet, Inc., 6.000%, 9/01/2015		2,172,417
	270,000	Avnet, Inc., 6.625%, 9/15/2016		309,673
	1,250,000	Corning, Inc., 6.750%, 9/15/2013		1,418,282
	210,000	Corning, Inc., 6.850%, 3/01/2029		241,480
	810,000	Corning, Inc., 7.000%, 5/15/2024		998,479
	3,565,000	Corning, Inc., 7.250%, 8/15/2036		4,088,235
	1,970,000	Dun & Bradstreet Corp. (The), 6.000%, 4/01/2013		2,161,372
	3,550,000	Ingram Micro, Inc., 5.250%, 9/01/2017		3,677,030
	635,000	Intuit, Inc., 5.750%, 3/15/2017		719,431
	670,000	KLA-Tencor Corp., 6.900%, 5/01/2018		768,552
	470,000	Motorola, Inc., 6.500%, 9/01/2025		511,496
	235,000	Motorola, Inc., 6.500%, 11/15/2028		249,515
	290,000	Motorola, Inc., 6.625%, 11/15/2037		310,120
	450,000	Samsung Electronics Co. Ltd., 7.700%, 10/01/2027, 144A		534,111
				18,160,193
		Tobacco – 0.2%
	735,000	Reynolds American, Inc., 6.750%, 6/15/2017		826,667
	195,000	Reynolds American, Inc., 7.250%, 6/15/2037		204,719
				1,031,386
		Transportation Services – 0.8%
	100,000	APL Ltd., 8.000%, 1/15/2024(c)		68,500
	2,542,593	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 7/02/2015		2,415,463
	945,000	Erac USA Finance Co., 6.700%, 6/01/2034, 144A		1,049,268
				3,533,231

Principal Amount (‡)		Description	Value (†)
		Treasuries – 19.6%
	5,950,000	Canadian Government, 1.000%, 9/01/2011, (CAD)	$	5,769,170
	135,000	Canadian Government, 1.250%, 12/01/2011, (CAD)		131,166
	4,407,000	Canadian Government, 2.000%, 9/01/2012, (CAD)		4,333,886
	804,000	Canadian Government, 3.500%, 6/01/2013, (CAD)		822,027
	2,000,000	Canadian Government, 3.750%, 9/01/2011, (CAD)		1,987,365
	9,485,000	Canadian Government, 3.750%, 6/01/2012, (CAD)		9,584,376
	31,580,000	Canadian Government, 3.750%, 6/01/2019, (CAD)		33,260,133
	1,000,000	Canadian Government, 4.000%, 6/01/2016, (CAD)		1,068,918
	16,420,000	Canadian Government, 5.250%, 6/01/2012, (CAD)		16,984,622
	154,851	Hellenic Republic Government Bond, 2.300%, 7/25/2030, (EUR)		102,980
	5,460,000	New Zealand Government Bond, 6.500%, 4/15/2013, (NZD)		4,262,546
	23,620,000	Norwegian Government, 4.250%, 5/19/2017, (NOK)		4,343,973
	54,560,000	Norwegian Government, 6.500%, 5/15/2013, (NOK)		10,227,258
				92,878,420
		Wireless – 0.3%
	60,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015		60,300
	45,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		45,281
	510,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		507,450
	234,000	Sprint Capital Corp., 6.875%, 11/15/2028		214,110
	120,000	Sprint Capital Corp., 6.900%, 5/01/2019		120,600
	366,000	Sprint Nextel Corp., 6.000%, 12/01/2016		361,425
				1,309,166
		Wirelines – 5.5%
	1,310,000	AT&T Corp., 6.500%, 3/15/2029		1,462,518
	2,000,000	BellSouth Telecommunications, Inc., 5.850%, 11/15/2045		1,945,290
	2,165,000	CenturyLink, Inc., Series P, 7.600%, 9/15/2039		2,118,307
	8,170,000	Deutsche Telekom International Finance BV, 6.000%, 7/08/2019		9,721,173
	500,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		500,000
	3,065,000	Qwest Corp., 6.875%, 9/15/2033		3,026,688
	195,000	Qwest Corp., 7.500%, 6/15/2023		195,975

See accompanying notes to financial statements.

|  78

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Investment Grade Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Bonds and Notes – continued
		Wirelines – continued
$	1,880,000	Telecom Italia Capital SA, 6.000%, 9/30/2034	$	1,773,494
	290,000	Verizon Maryland, Inc., Series B, 5.125%, 6/15/2033		263,137
	2,170,000	Verizon New England, Inc., 7.875%, 11/15/2029		2,509,831
	915,000	Verizon New York, Inc., Series B, 7.375%, 4/01/2032		1,079,665
	695,000	Verizon Pennsylvania, Inc., 6.000%, 12/01/2028		697,380
	505,000	Verizon Virginia, Inc., Series A, 4.625%, 3/15/2013		540,995
				25,834,453
		Total Non-Convertible Bonds
		(Identified Cost $392,146,825)		450,930,135
	Convertible Bonds – 2.0%
		Automotive – 0.3%
	1,035,000	Ford Motor Co., 4.250%, 11/15/2016		1,544,737
		REITs – Apartments – 0.0%
	180,000	ERP Operating LP, 3.850%, 8/15/2026		185,328
		Technology – 1.7%
	2,385,000	Intel Corp., 2.950%, 12/15/2035		2,358,169
	4,700,000	Intel Corp., 3.250%, 8/01/2039		5,487,250
				7,845,419
		Total Convertible Bonds
		(Identified Cost $8,220,715)		9,575,484
	Municipals – 0.7%
		Michigan – 0.2%
	1,055,000	Michigan Tobacco Settlement Finance Authority Taxable Turbo, Series A, 7.309%, 6/01/2034(c)		837,754
		Ohio – 0.1%
	750,000	Buckeye Tobacco Settlement Financing Authority, Series A-2, 5.875%, 6/01/2047(c)		547,770
		Virginia – 0.4%
	2,815,000	Virginia Tobacco Settlement Financing Corp., Series A-1, 6.706%, 6/01/2046(c)		1,949,106
		Total Municipals
		(Identified Cost $4,589,074)		3,334,630
		Total Bonds and Notes
		(Identified Cost $404,956,614)		463,840,249

Shares		Description	Value (†)
	Preferred Stocks – 2.1%
	Convertible Preferred Stocks – 1.3%
		Automotive – 0.7%
	67,750	Ford Motor Co. Capital Trust II, 6.500%	$	3,245,902
		Capital Markets – 0.2%
	33,050	Newell Financial Trust I, 5.250%		1,307,541
		Diversified Financial Services – 0.4%
	940	Bank of America Corp., Series L, 7.250%		922,375
	25,000	Sovereign Capital Trust IV, 4.375%		925,000
				1,847,375
		Total Convertible Preferred Stocks
		(Identified Cost $5,753,898)		6,400,818
	Non-Convertible Preferred Stocks – 0.8%
		Banking – 0.0%
	161	Ally Financial, Inc., Series G, 7.000%, 144A		144,925
		Electric Utilities – 0.1%
	263	Connecticut Light & Power Co., 2.200%		10,536
	202	MDU Resources Group, Inc., 5.100%		20,055
	3,160	Union Electric Co., 4.500%		233,840
				264,431
		Multi-Utilities – 0.0%
	100	San Diego Gas & Electric Co., 4.500%		1,864
		Software – 0.7%
	3,000	Falcons Funding Trust I, (Step to 10.875% on 3/15/2015, variable rate after 3/15/2020), 8.875%, 144A(e)		3,164,063
		Total Non-Convertible Preferred Stocks
		(Identified Cost $3,255,169)		3,575,283
		Total Preferred Stocks
		(Identified Cost $9,009,067)		9,976,101
	Common Stocks – 0.1%
		Biotechnology – 0.1%
	13,708	Vertex Pharmaceuticals, Inc.(f)
		(Identified Cost $302,522)		473,885

See accompanying notes to financial statements.

79  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Investment Grade Fixed Income Fund – continued

Principal Amount (‡)		Description	Value (†)
	Short-Term Investments – 1.6%
$	7,461,079	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2010 at 0.000% to be repurchased at $7,461,079 on 10/01/2010 collateralized by $7,530,000 Federal Home Loan Bank, 1.000% due 12/28/2011 valued at $7,614,713 including accrued interest (Note 2 of Notes to Financial Statements)
		(Identified Cost $7,461,079)	$	7,461,079
		Total Investments – 101.8%
		(Identified Cost $421,729,282)(a)		481,751,314
		Other Assets Less Liabilities—(1.8)%		(8,552,610	)
		Net Assets – 100.0%	$	473,198,704
	(‡)	Principal amount stated in U.S. dollars unless otherwise noted.
	(†)	See Note 2 of Notes to Financial Statements.
	(††)	Amount shown represents units. One unit represents a principal amount of 100.
	(a)	Federal Tax Information:
		At September 30, 2010, the net unrealized appreciation on investments based on a cost of $423,661,022 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	$	60,992,581
		Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(2,902,289	)
		Net unrealized appreciation	$	58,090,292
	(b)	Variable rate security. Rate as of September 30, 2010 is disclosed.
	(c)	Illiquid security. At September 30, 2010, the value of these securities amounted to $8,033,687 or 1.7% of net assets.
	(d)	The Fund’s investment in mortgage related securities of the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and Government National Mortgage Association are interests in separate pools of mortgages. All separate investments in securities of each issuer which have the same coupon rate have been aggregated for the purpose of presentation in the Portfolio of Investments.
	(e)	Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.
	(f)	Non-income producing security.
	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, 2010, the total value of these securities amounted to $59,668,503 or 12.6% of net assets.
	ABS	Asset-Backed Securities
	ARMs	Adjustable Rate Mortgages
	EMTN	Euro Medium Term Note
	FHLMC	Federal Home Loan Mortgage Corp.
	FNMA	Federal National Mortgage Association
	GMTN	Global Medium Term Note
	GNMA	Government National Mortgage Association
	MTN	Medium Term Note
	REITs	Real Estate Investment Trusts

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

Industry Summary at September 30, 2010 (Unaudited)

Treasuries	19.6	%
Banking	7.3
Commercial Mortgage-Backed Securities	6.0
Technology	5.5
Wirelines	5.5
Airlines	4.6
Sovereigns	4.3
Electric	3.4
Non-Captive Diversified	3.1
Property & Casualty Insurance	2.4
Pipelines	2.3
Supranational	2.1
ABS Other	2.0
Other Investments, less than 2% each	32.1
Short-Term Investments	1.6
Total Investments	101.8
Other assets less liabilities	(1.8	)
Net Assets	100.0	%

Currency Exposure at September 30, 2010 as a Percentage of Net Assets (Unaudited)

United States Dollar	71.2	%
Canadian Dollar	15.7
New Zealand Dollar	4.1
Norwegian Krone	3.1
Australian Dollar	2.5
Other, less than 2% each	5.2
Total Investments	101.8
Other assets less liabilities	(1.8	)
Net Assets	100.0	%

See accompanying notes to financial statements.

|  80

Statements of Assets and Liabilities

September 30, 2010

	Bond Fund			Fixed Income Fund			Global Bond Fund			Inflation Protected Securities Fund
ASSETS
Investments at cost	$	17,802,203,544		$	715,557,933		$	2,059,257,228		$	12,380,163
Net unrealized appreciation		1,632,218,868			81,332,098			166,347,146			839,053
Investments at value		19,434,422,412			796,890,031			2,225,604,374			13,219,216
Cash		—			—			—			77,737
Foreign currency at value (identified cost $12,250,868, $457,464, $33,859,681, $0)		11,420,414			398,089			35,569,349			—
Receivable for Fund shares sold		50,012,687			182,679			6,226,308			—
Receivable from investment adviser (Note 6)		—			—			—			15,842
Receivable for securities sold		70,751,126			2,878,445			26,285,608			—
Collateral received on open forward foreign currency contracts (Note 2)		—			—			600,000			—
Dividends and interest receivable		286,018,209			10,922,228			29,350,780			95,177
Unrealized appreciation on forward foreign currency contracts (Note 2)		—			—			4,053,591			—
Tax reclaims receivable		1,385,398			50,767			110,052			—
TOTAL ASSETS		19,854,010,246			811,322,239			2,327,800,062			13,407,972
LIABILITIES
Payable for securities purchased		121,810,048			3,045,788			8,545,097			—
Payable for Fund shares redeemed		18,714,313			1,622,627			1,973,148			5,726
Unrealized depreciation on forward foreign currency contracts (Note 2)		—			—			3,197,621			—
Foreign taxes payable (Note 2)		319,840			14,730			—			—
Due to broker (Note 2)		—			—			600,000			—
Management fees payable (Note 6)		8,543,974			328,061			1,108,129			—
Deferred Trustees’ fees (Note 6)		720,780			91,664			158,300			47,064
Administrative fees payable (Note 6)		749,752			30,871			87,039			557
Payable to broker—variation margin on open futures contracts		—			—			28,125			—
Other accounts payable and accrued expenses		1,346,742			50,045			199,272			38,816
TOTAL LIABILITIES		152,205,449			5,183,786			15,896,731			92,163
NET ASSETS	$	19,701,804,797		$	806,138,453		$	2,311,903,331		$	13,315,809
NET ASSETS CONSIST OF:
Paid-in capital	$	19,053,651,263		$	700,923,300		$	2,230,179,421		$	13,157,559
Undistributed net investment income (Distributions in excess of net investment income)		8,550,062			35,844,239			2,645,799			(40,631	)
Accumulated net realized gain (loss) on investments, futures contracts, swap agreements and foreign currency transactions		(994,689,539	)		(11,983,550	)		(90,143,268	)		(640,217	)
Net unrealized appreciation on investments, futures contracts and foreign currency translations		1,634,293,011			81,354,464			169,221,379			839,098
NET ASSETS	$	19,701,804,797		$	806,138,453		$	2,311,903,331		$	13,315,809
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Institutional Class:
Net assets	$	11,194,527,113		$	806,138,453		$	1,285,094,703		$	13,240,387
Shares of beneficial interest		788,347,601			57,087,892			75,620,283			1,192,423
Net asset value, offering and redemption price per share	$	14.20		$	14.12		$	16.99		$	11.10
Retail Class:
Net assets	$	8,241,062,265		$	—		$	1,026,808,628		$	75,422
Shares of beneficial interest		582,459,563			—			60,957,140			6,799
Net asset value, offering and redemption price per share	$	14.15		$	—		$	16.84		$	11.09
Admin Class:
Net assets	$	266,215,419		$	—		$	—		$	—
Shares of beneficial interest		18,861,308			—			—			—
Net asset value, offering and redemption price per share	$	14.11		$	—		$	—		$	—

See accompanying notes to financial statements.

81  |

	Institutional High Income Fund		Intermediate Duration Bond Fund*			Investment Grade Fixed Income Fund
ASSETS
Investments at cost	$	325,525,956	$	35,523,536		$	421,729,282
Net unrealized appreciation		54,776,409		2,526,970			60,022,032
Investments at value		380,302,365		38,050,506			481,751,314
Foreign currency at value (identified cost $110,066, $0 and $183,616)		101,394		—			179,844
Receivable from investment adviser (Note 6)		—		10,333			—
Receivable for securities sold		—		14,859			3,613,725
Dividends and interest receivable		5,541,432		278,717			6,347,840
Tax reclaims receivable		11,851		178			62,811
TOTAL ASSETS		385,957,042		38,354,593			491,955,534
LIABILITIES
Payable for securities purchased		1,910,252		1,185,232			460,378
Payable for Fund shares redeemed		37,029		40,575			18,000,000
Foreign taxes payable (Note 2)		3,394		—			7,055
Management fees payable (Note 6)		189,169		—			159,452
Deferred Trustees’ fees (Note 6)		60,649		49,509			67,614
Administrative fees payable (Note 6)		14,834		1,405			18,755
Other accounts payable and accrued expenses		49,057		36,648			43,576
TOTAL LIABILITIES		2,264,384		1,313,369			18,756,830
NET ASSETS	$	383,692,658	$	37,041,224		$	473,198,704
NET ASSETS CONSIST OF:
Paid-in capital	$	294,696,278	$	35,418,932		$	397,103,390
Undistributed net investment income (Distributions in excess of net investment income)		19,715,804		(38,367	)		1,941,507
Accumulated net realized gain (loss) on investments, futures contracts, swap agreements and foreign currency transactions		14,498,615		(866,311	)		14,087,102
Net unrealized appreciation on investments, futures contracts and foreign currency translations		54,781,961		2,526,970			60,066,705
NET ASSETS	$	383,692,658	$	37,041,224		$	473,198,704
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:
Institutional Class:
Net assets	$	383,692,658	$	36,958,933		$	473,198,704
Shares of beneficial interest		47,484,357		3,495,088			35,205,057
Net asset value, offering and redemption price per share	$	8.08	$	10.57		$	13.44
Retail Class:
Net assets	$	—	$	82,291		$	—
Shares of beneficial interest		—		7,776			—
Net asset value, offering and redemption price per share	$	—	$	10.58		$	—

* Formerly Intermediate Duration Fixed Income Fund.

See accompanying notes to financial statements.

|  82

Statements of Operations

For the Year Ended September 30, 2010

	Bond Fund			Fixed Income Fund			Global Bond Fund			Inflation Protected Securities Fund
INVESTMENT INCOME
Interest	$	1,171,509,628		$	48,331,785		$	86,036,932		$	485,272
Dividends		45,833,960			1,959,257			—			—
Less net foreign taxes withheld		(1,421,693	)		(45,346	)		(137,149	)		—
		1,215,921,895			50,245,696			85,899,783			485,272
Expenses
Management fees (Note 6)		97,620,601			3,919,095			11,507,071			37,003
Service and distribution fees (Note 6)		21,029,369			—			2,444,133			33
Administrative fees (Note 6)		9,127,874			376,477			1,011,213			7,110
Trustees’ fees and expenses (Note 6)		359,710			31,742			56,504			17,102
Transfer agent fees and expenses (Notes 6 and 7)		12,858,954			3,435			1,362,611			7,971
Audit and tax services fees		59,663			43,903			52,304			40,237
Custodian fees and expenses		1,047,911			65,537			193,029			17,520
Legal fees		391,844			15,554			43,829			298
Registration fees		445,231			29,797			156,265			43,382
Shareholder reporting expenses		2,019,977			4,154			262,156			4,318
Fee/expense recovery (Note 6)		356,045			—			105,094			—
Miscellaneous expenses		588,187			28,761			66,829			6,107
Total expenses		145,905,366			4,518,455			17,261,038			181,081
Less waiver and/or expense reimbursement (Note 6)		(18,548	)		—			—			(121,843	)
Net expenses		145,886,818			4,518,455			17,261,038			59,238
Net investment income		1,070,035,077			45,727,241			68,638,745			426,034
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS, SWAP AGREEMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		(83,258,156	)		11,687,480			15,771,541			186,828
Swap agreements		—			—			(442,957	)		—
Foreign currency transactions		2,340,594			120,423			2,301,050			1,243
Net change in unrealized appreciation (depreciation) on:
Investments		1,806,896,815			54,505,497			101,958,669			728,530
Futures contracts		—			—			(521,136	)		—
Swap agreements		—			—			197,561			—
Foreign currency translations		(1,345,417	)		(87,335	)		692,543			(1,156	)
Net realized and unrealized gain on investments, futures contracts, swap agreements and foreign currency transactions		1,724,633,836			66,226,065			119,957,271			915,445
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,794,668,913		$	111,953,306		$	188,596,016		$	1,341,479

See accompanying notes to financial statements.

83  |

	Institutional High Income Fund			Intermediate Duration Bond Fund*			Investment Grade Fixed Income Fund
INVESTMENT INCOME
Interest	$	29,480,662		$	1,311,279		$	28,574,155
Dividends		1,467,872			—			421,811
Less net foreign taxes withheld		(89,300	)		—			—
		30,859,234			1,311,279			28,995,966
Expenses
Management fees (Note 6)		2,377,372			79,087			2,009,718
Service and distribution fees (Note 6)		—			44			—
Administrative fees (Note 6)		190,407			15,189			241,404
Trustees’ fees and expenses (Note 6)		23,896			17,479			26,141
Transfer agent fees and expenses (Notes 6 and 7)		8,326			1,882			2,092
Audit and tax services fees		42,011			40,038			40,733
Custodian fees and expenses		72,327			19,480			43,100
Legal fees		8,115			634			10,354
Registration fees		50,030			44,714			31,827
Shareholder reporting expenses		6,681			7,671			3,189
Miscellaneous expenses		18,618			6,435			20,936
Total expenses		2,797,783			232,653			2,429,494
Less waiver and/or expense reimbursement (Note 6)		—			(106,069	)		—
Net expenses		2,797,783			126,584			2,429,494
Net investment income		28,061,451			1,184,695			26,566,472
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS, SWAP AGREEMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments		25,696,669			414,041			19,339,492
Futures contracts		—			64,582			—
Foreign currency transactions		39,105			—			58,174
Net change in unrealized appreciation (depreciation) on:
Investments		11,624,515			1,597,534			21,299,210
Futures contracts		—			(21,914	)		—
Foreign currency translations		(2,906	)		—			(21,064	)
Net realized and unrealized gain on investments, futures contracts, swap agreements and foreign currency transactions		37,357,383			2,054,243			40,675,812
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	65,418,834		$	3,238,938		$	67,242,284

* Formerly Intermediate Duration Fixed Income Fund.

See accompanying notes to financial statements.

|  84

Statements of Changes in Net Assets

	Bond Fund						Fixed Income Fund						Global Bond Fund
	Year Ended September 30, 2010			Year Ended September 30, 2009			Year Ended September 30, 2010			Year Ended September 30, 2009			Year Ended September 30, 2010			Year Ended September 30, 2009
FROM OPERATIONS:
Net investment income	$	1,070,035,077		$	1,080,512,433		$	45,727,241		$	45,139,932		$	68,638,745		$	77,247,236
Net realized gain (loss) on investments, futures contracts, swap agreements and foreign currency transactions		(80,917,562	)		(1,010,333,974	)		11,807,903			(23,048,485	)		17,629,634			(92,453,436	)
Net change in unrealized appreciation (depreciation) on investments, futures contracts, swap agreements and foreign currency translations		1,805,551,398			2,913,600,501			54,418,162			107,846,442			102,327,637			268,906,689
Net increase in net assets resulting from operations		2,794,668,913			2,983,778,960			111,953,306			129,937,889			188,596,016			253,700,489
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Institutional Class		(642,070,620	)		(619,050,919	)		(42,551,309	)		(44,598,886	)		(39,529,201	)		(55,958,395	)
Retail Class		(448,114,393	)		(461,177,153	)		—			—			(31,727,897	)		(50,692,695	)
Admin Class		(13,185,534	)		(13,908,985	)		—			—			—			—
Net realized capital gains
Institutional Class		—			(64,404,701	)		—			(12,700,279	)		—			—
Retail Class		—			(54,894,455	)		—			—			—			—
Admin Class		—			(1,827,140	)		—			—			—			—
Total distributions		(1,103,370,547	)		(1,215,263,353	)		(42,551,309	)		(57,299,165	)		(71,257,098	)		(106,651,090	)
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 11)		(717,934,887	)		2,269,216,544			(25,218,972	)		64,830,887			243,357,966			(426,483,756	)
Net increase (decrease) in net assets		973,363,479			4,037,732,151			44,183,025			137,469,611			360,696,884			(279,434,357	)
NET ASSETS
Beginning of the year		18,728,441,318			14,690,709,167			761,955,428			624,485,817			1,951,206,447			2,230,640,804
End of the year	$	19,701,804,797		$	18,728,441,318		$	806,138,453		$	761,955,428		$	2,311,903,331		$	1,951,206,447
UNDISTRIBUTED NET INVESTMENT INCOME (DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME)	$	8,550,062		$	(6,357,321	)	$	35,844,239		$	30,934,158		$	2,645,799		$	2,356,778

* Formerly Intermediate Duration Fixed Income Fund.

See accompanying notes to financial statements.

85  |

Inflation Protected Securities Fund						Institutional High Income Fund						Intermediate Duration Bond Fund*						Investment Grade Fixed Income Fund
Year Ended September 30, 2010			Year Ended September 30, 2009			Year Ended September 30, 2010			Year Ended September 30, 2009			Year Ended September 30, 2010			Year Ended September 30, 2009			Year Ended September 30, 2010			Year Ended September 30, 2009
$	426,034		$	118,144		$	28,061,451		$	27,703,156		$	1,184,695		$	1,406,865		$	26,566,472		$	22,961,017
	188,071			(514,279	)		25,735,774			(10,766,213	)		478,623			(271,669	)		19,397,666			(3,520,541	)
	727,374			1,234,805			11,621,609			78,711,449			1,575,620			2,844,302			21,278,146			69,572,140
	1,341,479			838,670			65,418,834			95,648,392			3,238,938			3,979,498			67,242,284			89,012,616
	(490,125	)		(145,315	)		(30,543,921	)		(17,646,157	)		(1,295,593	)		(1,361,910	)		(27,602,054	)		(25,648,228	)
	(471	)		—			—			—			(690	)		—			—			—
	—			—			—			—			—			—			—			—
	—			—			(11,736	)		(3,337,874	)		—			—			—			(3,479,011	)
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	(490,596	)		(145,315	)		(30,555,657	)		(20,984,031	)		(1,296,283	)		(1,361,910	)		(27,602,054	)		(29,127,239	)
	(1,511,063	)		(2,750,472	)		(109,686,518	)		169,650,687			7,071,240			(7,338,103	)		(91,945,491	)		187,755,770
	(660,180	)		(2,057,117	)		(74,823,341	)		244,315,048			9,013,895			(4,720,515	)		(52,305,261	)		247,641,147
	13,975,989			16,033,106			458,515,999			214,200,951			28,027,329			32,747,844			525,503,965			277,862,818
$	13,315,809		$	13,975,989		$	383,692,658		$	458,515,999		$	37,041,224		$	28,027,329		$	473,198,704		$	525,503,965
$	(40,631	)	$	(36,427	)	$	19,715,804		$	21,476,408		$	(38,367	)	$	62,444		$	1,941,507		$	(187,459	)

See accompanying notes to financial statements.

|  86

Financial Highlights

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income(a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions
Bond Fund
Institutional Class
9/30/2010	$	12.99	$	0.78	$	1.24		$	2.02		$	(0.81	)	$	—		$	(0.81	)
9/30/2009		11.89		0.85		1.23			2.08			(0.87	)		(0.11	)		(0.98	)
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	)
Retail Class
9/30/2010		12.94		0.74		1.24			1.98			(0.77	)		—			(0.77	)
9/30/2009		11.85		0.82		1.22			2.04			(0.84	)		(0.11	)		(0.95	)
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	)
Admin Class
9/30/2010		12.91		0.70		1.23			1.93			(0.73	)		—			(0.73	)
9/30/2009		11.82		0.79		1.22			2.01			(0.81	)		(0.11	)		(0.92	)
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	)

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

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

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

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

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

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

(g) 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.

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

(i) Includes fee/expense recovery of less than 0.01%.

See accompanying notes to financial statements.

87  |

									Ratios to Average Net Assets:
Redemption fees(b)(c)		Net asset value, end of the period		Total return (%)(d)			Net assets, end of the period (000’s)		Net expenses (%)(e)(f)			Gross expenses (%)(f)			Net investment income (%)(f)		Portfolio turnover rate (%)
$	—	$	14.20		16.00		$	11,194,527		0.64			0.64			5.76		27
	—		12.99		19.84			10,855,818		0.65			0.65			7.69		39
	0.00		11.89		(13.14	)		7,616,621		0.64			0.64			6.78		26
	0.00		14.71		10.28			7,716,061		0.67	(g)		0.67			5.75		20
	0.00		14.13		9.00			4,742,622		0.75	(h)		0.75	(h)		5.20		26
	—		14.15		15.72			8,241,062		0.93	(i)		0.93	(i)		5.46		27
	—		12.94		19.46			7,646,591		0.95			0.96			7.44		39
	0.00		11.85		(13.44	)		6,863,594		0.94	(i)		0.94	(i)		6.49		26
	0.00		14.67		9.93			6,432,333		0.97	(g)		0.97			5.49		20
	0.00		14.10		8.79			2,232,632		1.00			1.01			4.99		26
	—		14.11		15.37			266,215		1.20			1.21			5.20		27
	—		12.91		19.21			226,032		1.20			1.25			7.22		39
	0.00		11.82		(13.69	)		210,494		1.20			1.24			6.23		26
	0.00		14.64		9.66			193,850		1.23	(g)(i)		1.23	(i)		5.20		20
	0.00		14.07		8.51			106,941		1.25			1.29			4.71		26

See accompanying notes to financial statements.

|  88

Financial Highlights – continued

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income(a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions
Fixed Income Fund
Institutional Class
9/30/2010	$	12.94	$	0.77	$	1.14		$	1.91		$	(0.73	)	$	—		$	(0.73	)
9/30/2009		12.15		0.78		1.15			1.93			(0.89	)		(0.25	)		(1.14	)
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	)
Global Bond Fund
Institutional Class
9/30/2010	$	16.09	$	0.55	$	0.92		$	1.47		$	(0.57	)	$	—		$	(0.57	)
9/30/2009		14.42		0.67		1.89			2.56			(0.89	)		—			(0.89	)
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	)
Retail Class
9/30/2010		15.96		0.49		0.91			1.40			(0.52	)		—			(0.52	)
9/30/2009		14.31		0.62		1.88			2.50			(0.85	)		—			(0.85	)
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	)

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

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

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

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

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

(f) Includes fee/expense recovery of less than 0.01% and 0.03% for Fixed Income Fund and Global Bond Fund, respectively.

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

(h) Includes fee/expense recovery of 0.01%.

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

See accompanying notes to financial statements.

89  |

										Ratios to Average Net Assets:
Redemption fees(b)			Net asset value, end of the period		Total return (%)(c)			Net assets, end of the period (000’s)		Net expenses (%)(d)(e)			Gross expenses (%)(e)			Net investment income (%)(e)		Portfolio turnover rate (%)
$	—		$	14.12		15.38		$	806,138		0.58			0.58			5.83		22
	—			12.94		19.55			761,955		0.58			0.58			7.11		29
	—			12.15		(9.42	)		624,486		0.58			0.58			6.43		30
	—			14.49		11.31			605,100		0.60			0.60			5.96		22
	—			13.89		8.06			456,011		0.60	(f)		0.60	(f)		5.48		40
$	—		$	16.99		9.46		$	1,285,095		0.66			0.66			3.41		100
	—			16.09		19.19			1,032,465		0.68			0.68			4.76		75
	0.00	(g)		14.42		(4.14	)		1,157,175		0.64			0.64			4.36		60
	0.00			15.83		8.70			996,046		0.68			0.68			3.84		95
	0.00			15.43		4.32			643,991		0.74	(f)		0.74	(f)		3.21		77
	—			16.84		9.05			1,026,809		1.00	(h)		1.00	(h)		3.08		100
	—			15.96		18.81			918,742		1.00			1.02			4.46		75
	0.00	(g)		14.31		(4.45	)		1,073,466		1.00	(i)		1.00	(i)		4.02		60
	0.00			15.71		8.36			874,575		1.00			1.04			3.53		95
	0.00			15.29		4.03			540,697		1.00			1.09			2.93		77

See accompanying notes to financial statements.

|  90

Financial Highlights – continued

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:									Less Distributions:
	Net asset value, beginning of the period		Net investment income(a)			Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains(b)			Total distributions
Inflation Protected Securities Fund
Institutional Class
9/30/2010	$	10.46	$	0.31		$	0.67		$	0.98		$	(0.34	)	$	—		$	(0.34	)
9/30/2009		9.86		0.09	(f)		0.61			0.70			(0.10	)		—			(0.10	)
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	)
Retail Class
9/30/2010*		10.71		0.04			0.44			0.48			(0.10	)		—			(0.10	)
Institutional High Income Fund
Institutional Class
9/30/2010	$	7.40	$	0.54		$	0.66		$	1.20		$	(0.52	)	$	(0.00	)	$	(0.52	)
9/30/2009		6.87		0.57			0.54			1.11			(0.49	)		(0.09	)		(0.58	)
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	)

* From commencement of Class operations on May 28, 2010 through September 30, 2010

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

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

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

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

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

(f) Includes income reductions resulting from principal deflation adjustments during the period in the amount of $0.14 per share and 1.44% of average net assets. See Note 2 of Notes to Financial Statements.

(g) Includes fee/expense recovery of 0.01%.

See accompanying notes to financial statements.

91  |

							Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%)(c)			Net assets, end of the period (000’s)		Net expenses (%)(d)(e)			Gross expenses (%)(e)			Net investment income (%)(e)			Portfolio turnover rate (%)
$	11.10		9.58		$	13,240		0.40			1.22			2.88			39
	10.46		7.21			13,976		0.40			1.11			0.88	(f)		12
	9.86		2.64			16,033		0.40			0.95			6.85			22
	10.31		5.05			13,468		0.40			1.28			4.60			26
	10.30		1.48			9,053		0.40			1.69			4.96			41
	11.09		4.47			75		0.65			2.36			1.12			39
$	8.08		17.06		$	383,693		0.71			0.71			7.08			21
	7.40		20.82			458,516		0.72			0.72			9.54			37
	6.87		(11.70	)		214,201		0.72			0.72			7.70			35
	8.45		10.81			187,568		0.75	(g)		0.75	(g)		6.60			31
	8.11		11.56			141,318		0.75			0.79			6.40			23

See accompanying notes to financial statements.

|  92

Financial Highlights – continued

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income(a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains			Total distributions
Intermediate Duration Bond Fund*
Institutional Class
9/30/2010	$	9.95	$	0.38	$	0.66		$	1.04		$	(0.42	)	$	—		$	(0.42	)
9/30/2009		8.95		0.48		0.98			1.46			(0.46	)		—			(0.46	)
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	)
Retail Class
9/30/2010**		10.21		0.09		0.41			0.50			(0.13	)		—			(0.13	)
Investment Grade Fixed Income Fund
Institutional Class
9/30/2010	$	12.39	$	0.68	$	1.07		$	1.75		$	(0.70	)	$	—		$	(0.70	)
9/30/2009		11.36		0.67		1.31			1.98			(0.81	)		(0.14	)		(0.95	)
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	)

* Formerly Intermediate Duration Fixed Income Fund.

** From commencement of Class operations on May 28, 2010 through September 30, 2010.

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

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

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

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

(e) Includes fee/expense recovery of less than 0.01%.

See accompanying notes to financial statements.

93  |

							Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%)(b)			Net assets, end of the period (000’s)		Net expenses (%)(c)(d)			Gross expenses (%)(d)			Net investment income (%)(d)		Portfolio turnover rate (%)
$	10.57		10.67		$	36,959		0.40			0.73			3.75		43
	9.95		16.99			28,027		0.40			0.68			5.24		52
	8.95		(0.46	)		32,748		0.40			0.59			5.00		65
	9.47		4.76			31,445		0.40			0.61			4.71		87
	9.50		3.82			41,851		0.40			0.62			4.48		62
	10.58		4.89			82		0.65			1.61			2.66		43
$	13.44		14.59		$	473,199		0.48			0.48			5.29		24
	12.39		19.35			525,504		0.49			0.49			6.10		22
	11.36		(6.00	)		277,863		0.50			0.50			5.98		32
	12.96		10.19			261,741		0.53			0.53			5.52		23
	12.63		6.81			173,549		0.55	(e)		0.55	(e)		4.79		50

See accompanying notes to financial statements.

|  94

Notes to Financial Statements

September 30, 2010

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). The financial statements for certain funds of the Trust are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:

Loomis Sayles 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 Bond Fund (formerly Loomis Sayles Intermediate Duration Fixed Income Fund) (the “Intermediate Duration Bond 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. Effective May 28, 2010, Inflation Protected Securities Fund and Intermediate Duration Bond Fund began offering 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). In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of a Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

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

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

95  |

Notes to Financial Statements – continued

September 30, 2010

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

c.Foreign Currency Translation. The books and records of the Funds are maintained in U.S. dollars. The 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 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.

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.

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

e.  Futures Contracts. The Funds may enter into futures contracts. Futures contracts are agreements between two parties to buy and sell a particular commodity, instrument or index (e.g., an interest-bearing security) for a specified price on a specified future date.

When a Fund enters into a futures contract, it is required to deposit with (or for the benefit of) its broker an amount of cash or liquid securities as “initial margin”. As the value of the contract changes, the value of the futures contract position increases or declines. Subsequent payments, known as “variation margin”, are made or received by a Fund, depending on the price fluctuations in the fair value of the contract and the value of the collateral held. The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statements of Assets and Liabilities as an asset (liability) and in the Statements of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses). Realized gain or loss on a futures position is equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, minus brokerage commissions. When a Fund enters into a futures contract certain risks may arise such as illiquidity in the futures market, which may limit a Fund’s ability to close out a futures contract prior to settlement date, and unanticipated movements in the value of securities or interest rates.

Futures contracts are exchange-traded. Exchange-traded futures have standardized contracts and are settled through a clearing house with fulfillment guaranteed by the credit of the exchange. Therefore, counterparty credit risks to the Funds are limited.

|  96

Notes to Financial Statements – continued

September 30, 2010

f.  Swap Agreements. Each Fund may enter into credit default swaps. A credit default swap is an agreement between two parties (the “protection buyer” and “protection seller”) to exchange the credit risk of an issuer (“reference obligation”) for a specified time period. The reference obligation may be one or more debt securities or an index of such securities. The Funds may be either the protection buyer or the protection seller. The protection buyer is obligated to pay the protection seller a stream of payments (“fees”) over the term of the contract, provided that no credit event, such as a default or a downgrade in credit rating, occurs on the reference obligation. If a credit event occurs, the protection seller must pay the protection buyer the agreed upon notional value (“par value”) of the reference obligation in exchange for the reference obligation (or may pay the difference between the par value and market value of the reference obligation). The Funds may also make or receive upfront payments.

The notional amounts of credit default swaps are not recorded in the financial statements. Credit default swaps are marked-to-market daily. Fluctuations in the value of credit default swaps are recorded in the Statements of Operations as change in unrealized appreciation (depreciation) on swap agreements. Fees are accrued in accordance with the terms of the agreement and are recorded in the Statements of Operations as realized gain or loss when received or paid. Upfront fees received or paid by the Funds are amortized or accreted over the term of the agreement and recorded as realized gain or loss. Payments made or received by the Funds as a result of a credit event or termination of the agreement are recorded as realized gain or loss.

Credit default swaps are privately negotiated and traded between counterparties and, as such, are subject to the risk that a party to the agreement will not be able to meet its obligations. Counterparty risk is managed through the posting of collateral and, as a result, the risk of loss to a Fund from counterparty default should be limited to the extent a Fund is undercollateralized. In addition to collateral requirements, the Funds also require counterparties to meet minimum credit quality requirements. The Funds cover their net obligations under outstanding credit default swaps by segregating liquid assets in the form of collateral.

At September 30, 2010, there were no open credit default swaps.

g.  Federal and Foreign Income Taxes. The Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of September 30, 2010 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

A Fund may be subject to foreign taxes on income and gains on investments that are accrued based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign governments may also impose taxes or other payments on investments with respect to foreign securities. Such taxes are accrued as applicable, and are reflected as foreign taxes payable on the Statements of Assets and Liabilities.

h.  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, premium amortization accruals, reclassification of realized capital gain to ordinary income and return of capital and capital gain distributions from REITs. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to capital accounts. Temporary differences between book and tax distributable earnings are primarily due to deferred Trustees’ fees, wash sales, premium amortization accruals, securities lending collateral gain/loss adjustments, forward and futures contracts mark to market, defaulted bond interest, REIT basis adjustments, adjustments to inflation-protected securities and contingent payment debt instruments. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

97  |

Notes to Financial Statements – continued

September 30, 2010

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, 2010 and 2009 was as follows:

	2010 Distributions Paid From:						2009 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
Bond Fund	$	1,103,370,547	$	—	$	1,103,370,547	$	1,098,166,549	$	117,096,804	$	1,215,263,353
Fixed Income Fund		42,551,309		—		42,551,309		48,541,199		8,757,966		57,299,165
Global Bond Fund		71,257,098		—		71,257,098		106,651,090		—		106,651,090
Inflation Protected Securities Fund		490,596		—		490,596		145,315		—		145,315
Institutional High Income Fund		30,544,655		11,002		30,555,657		19,751,808		1,232,223		20,984,031
Intermediate Duration Bond Fund		1,296,283		—		1,296,283		1,361,910		—		1,361,910
Investment Grade Fixed Income Fund		27,602,054		—		27,602,054		26,583,130		2,544,109		29,127,239

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

As of September 30, 2010, the components of distributable earnings on a tax basis were as follows:

	Bond Fund			Fixed Income Fund			Global Bond Fund			Inflation Protected Securities Fund
Undistributed ordinary income	$	24,084,053		$	36,268,620		$	5,425,278		$	6,433
Undistributed long-term capital gains		—			—			—			—
Total undistributed earnings		24,084,053			36,268,620			5,425,278			6,433
Capital loss carryforward:
Expires September 30, 2014		—			—			(1,046,616	)		(19,853	)
Expires September 30, 2015		—			—			(5,497,643	)		(155,005	)
Expires September 30, 2016		—			—			(3,309,847	)		—
Expires September 30, 2017		(73,277,381	)		(129,506	)		(21,329,772	)		(110,122	)
Expires September 30, 2018		(667,219,656	)		(9,202,603	)		(34,063,363	)		(238,354	)
Total capital loss carryforward		(740,497,037	)		(9,332,109	)		(65,247,241	)		(523,334	)
Deferred net capital losses (post-October 2009)		(182,708,157	)		—			(18,054,311	)		—
Unrealized appreciation (depreciation)		1,558,224,649			78,421,401			159,758,484			722,215
Total accumulated earnings (losses)	$	659,103,508		$	105,357,912		$	81,882,210		$	205,314
Capital loss carryforward utilized in the current year	$	—		$	—		$	—		$	—

	Institutional High Income Fund		Intermediate Duration Bond Fund			Investment Grade Fixed Income Fund
Undistributed ordinary income	$	35,938,540	$	11,141		$	9,638,892
Undistributed long-term capital gains		—		—			8,399,569
Total undistributed earnings		35,938,540		11,141			18,038,461
Capital loss carryforward:
Expires September 30, 2015		—		(83,490	)		—
Expires September 30, 2016		—		(222,423	)		—
Expires September 30, 2017		—		(460,684	)		—
Total capital loss carryforward		—		(766,597	)		—
Deferred net capital losses (post-October 2009)		—		—			—
Unrealized appreciation (depreciation)		53,631,050		2,427,257			58,129,192
Total accumulated earnings (losses)	$	89,569,590	$	1,671,801		$	76,167,653
Capital loss carryforward utilized in the current year	$	—	$	433,446		$	—

|  98

Notes to Financial Statements – continued

September 30, 2010

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

j.  Delayed Delivery Commitments. The Funds may purchase securities, including those designated as TBAs in the Portfolio of Investments, for which delivery or payment will occur at a later date, beyond the normal settlement period. The price of the security and the date when the security will be delivered and paid for are fixed at the time the transaction is negotiated. The security and the obligation to pay for it are recorded by the Funds at the time the commitment is entered into. The actual security that will be delivered to fulfill a TBA trade is not designated at the time of the trade. The security is “to be announced” 48 hours prior to the established trade settlement date. The value of the security may vary with market fluctuations during the time before the Funds take delivery of the security. No interest accrues to the Funds until the transaction settles. When the Funds enter into such a transaction, collateral consisting of liquid securities or cash and cash equivalents is required to be segregated with the custodian and/or broker in an amount at least equal to the amount of the Funds’ commitment.

Purchases of delayed delivery securities may have a similar effect on the Funds’ net asset value as if the Funds had created a degree of leverage in its portfolio. Risks may arise upon entering into such transactions from the potential inability of counterparties to meet their obligations under the transactions. Additionally, losses may arise due to changes in the value of the underlying securities.

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

For the year ended September 30, 2010, none of the Funds had loaned securities under this agreement.

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

m.  Due to/from Brokers. Transactions and positions in forward foreign currency contracts and credit default swaps are primarily maintained and cleared by registered U.S. broker/dealers pursuant to customer agreements between the Fund and the various broker/dealers. Due to/from brokers’ balances in the Statements of Assets and Liabilities represent cash and/or securities received or pledged as collateral for forward foreign currency contracts and/or credit default swaps. In certain circumstances the Fund’s use of cash and/or securities received or pledged as collateral is restricted by regulation or broker mandated limits.

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

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

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

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

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

99  |

Notes to Financial Statements – continued

September 30, 2010

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2010, at value:

Bond Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
Non-Convertible Bonds
Airlines	$	—	$	349,179,814	$	50,705,608	$	399,885,422
Non-Captive Consumer		2,903,042		838,372,426		—		841,275,468
All Other Non-Convertible Bonds(a)		—		15,214,576,560		—		15,214,576,560
Total Non-Convertible Bonds		2,903,042		16,402,128,800		50,705,608		16,455,737,450
Convertible Bonds(a)		—		1,488,822,870		—		1,488,822,870
Municipals(a)		—		222,308,292		—		222,308,292
Total Bonds and Notes		2,903,042		18,113,259,962		50,705,608		18,166,868,612
Bank Loans(a)		—		91,789,289		—		91,789,289
Preferred Stocks
Convertible Preferred Stocks
Automotive		162,948,905		—		—		162,948,905
Capital Markets		—		10,698,333		—		10,698,333
Commercial Banks		12,557,898		—		—		12,557,898
Diversified Financial Services		25,338,819		11,281,115		—		36,619,934
Electric Utilities		16,917,290		—		7,293,125		24,210,415
Machinery		—		8,825,139		—		8,825,139
Oil, Gas & Consumable Fuels		14,775,058		2,185,937		—		16,960,995
REITs—Hotels		1,149,720		—		—		1,149,720
Semiconductors & Semiconductor Equipment		—		36,665,460		—		36,665,460
Total Convertible Preferred Stocks		233,687,690		69,655,984		7,293,125		310,636,799
Non-Convertible Preferred Stocks
Banking		—		47,566,960		—		47,566,960
Diversified Financial Services		1,228,540		30,667,500		—		31,896,040
Electric Utilities		1,149,795		664,606		—		1,814,401
Household Durables		250,125		—		—		250,125
Multi-Utilities		76,868		—		—		76,868
Oil, Gas & Consumable Fuels		—		15,089,328		—		15,089,328
REITs—Industrials		8,450,350		2,318,000		—		10,768,350
Software		—		40,078,125		—		40,078,125
Thrifts & Mortgage Finance		12,881,525		—		—		12,881,525
Total Non-Convertible Preferred Stocks		24,037,203		136,384,519		—		160,421,722
Total Preferred Stocks		257,724,893		206,040,503		7,293,125		471,058,521
Common Stocks(a)		446,273,967		—		—		446,273,967
Closed End Investment Companies		34,040,285		—		—		34,040,285
Short-Term Investments		—		224,391,738		—		224,391,738
Total	$	740,942,187	$	18,635,481,492	$	57,998,733	$	19,434,422,412

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

|  100

Notes to Financial Statements – continued

September 30, 2010

Fixed Income Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
Non-Convertible Bonds
Non-Captive Consumer	$	613,482	$	25,498,927	$	—	$	26,112,409
All Other Non-Convertible Bonds(a)		—		662,070,722		—		662,070,722
Total Non-Convertible Bonds		613,482		687,569,649		—		688,183,131
Convertible Bonds(a)		—		51,881,859		—		51,881,859
Municipals(a)		—		7,258,552		—		7,258,552
Total Bonds and Notes		613,482		746,710,060		—		747,323,542
Bank Loans(a)		—		1,199,724		—		1,199,724
Preferred Stocks
Convertible Preferred Stocks
Automotive		4,111,492		—		—		4,111,492
Capital Markets		—		992,030		—		992,030
Diversified Financial Services		2,790,675		2,047,691		—		4,838,366
Electric Utilities		488,125		—		—		488,125
Machinery		—		1,011,667		—		1,011,667
Oil, Gas & Consumable Fuels		1,030,550		—		—		1,030,550
REITs—Hotels		53,625		—		—		53,625
Semiconductors & Semiconductor Equipment		—		3,009,150		—		3,009,150
Total Convertible Preferred Stocks		8,474,467		7,060,538		—		15,535,005
Non-Convertible Preferred Stocks
Banking		—		1,009,075		—		1,009,075
Diversified Financial Services		115,900		—		—		115,900
Electric Utilities		345,580		253,234		—		598,814
Multi-Utilities		7,700		—		—		7,700
Software		—		3,164,062		—		3,164,062
Thrifts & Mortgage Finance		505,288		—		—		505,288
Total Non-Convertible Preferred Stocks		974,468		4,426,371		—		5,400,839
Total Preferred Stocks		9,448,935		11,486,909		—		20,935,844
Common Stocks(a)		18,602,340		—		—		18,602,340
Short-Term Investments		—		8,828,581		—		8,828,581
Total	$	28,664,757	$	768,225,274	$	—	$	796,890,031

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

Global Bond Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
Non-Convertible Bonds
Canada	$	—	$	156,958,684	$	5,065,604	$	162,024,288
All Other Non-Convertible Bonds(a)		—		2,029,191,991		—		2,029,191,991
Total Non-Convertible Bonds		—		2,186,150,675		5,065,604		2,191,216,279
Convertible Bonds(a)		—		7,816,660		—		7,816,660
Total Bonds and Notes		—		2,193,967,335		5,065,604		2,199,032,939
Short-Term Investments		—		26,571,435		—		26,571,435
Total Investments		—		2,220,538,770		5,065,604		2,225,604,374
Forward Foreign Currency Contracts (unrealized appreciation)		—		4,053,591		—		4,053,591
Total	$	—	$	2,224,592,361	$	5,065,604	$	2,229,657,965

101  |

Notes to Financial Statements – continued

September 30, 2010

Liability Valuation Inputs

Description(a)	Level 1			Level 2			Level 3		Total
Forward Foreign Currency Contracts (unrealized depreciation)	$	—		$	(3,197,621	)	$	—	$	(3,197,621	)
Futures Contracts (unrealized depreciation)		(521,136	)		—			—		(521,136	)
Total	$	(521,136	)	$	(3,197,621	)	$	—	$	(3,718,757	)

(a) Major categories of the Fund’s investments, forward foreign currency contracts and futures contracts are included in the Portfolio of Investments.

Inflation Protected Securities Fund

Asset Valuation Inputs

Description(a)	Level 1		Level 2		Level 3		Total
Bonds and Notes	$	—	$	13,219,216	$	—	$	13,219,216
Total	$	—	$	13,219,216	$	—	$	13,219,216

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

Institutional High Income Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
Non-Convertible Bonds
Airlines	$	—	$	3,837,642	$	971,693	$	4,809,335
All Other Non-Convertible Bonds(a)		—		261,342,577		—		261,342,577
Total Non-Convertible Bonds		—		265,180,219		971,693		266,151,912
Convertible Bonds(a)		—		76,022,807		—		76,022,807
Municipals(a)		—		571,833		—		571,833
Total Bonds and Notes		—		341,774,859		971,693		342,746,552
Bank Loans(a)		—		679,400		—		679,400
Common Stocks(a)		17,743,333		—		—		17,743,333
Preferred Stocks
Non-Convertible Preferred Stocks
Banking		—		403,270		—		403,270
Diversified Financial Services		417,240		598,125		—		1,015,365
Household Durables		334,519		—		—		334,519
REITs—Industrials		168,150		—		—		168,150
Thrifts & Mortgage Finance		170,437		—		—		170,437
Total Non-Convertible Preferred Stocks		1,090,346		1,001,395		—		2,091,741
Convertible Preferred Stocks
Automotive		3,200,771		—		—		3,200,771
Capital Markets		—		158,250		—		158,250
Commercial Banks		138,828		—		—		138,828
Diversified Financial Services		—		525,400		—		525,400
Electric Utilities		835,621		—		145,250		980,871
Machinery		—		479,988		—		479,988
Oil, Gas & Consumable Fuels		256,275		—		—		256,275
REITs—Hotels		23,595		—		—		23,595
Semiconductors & Semiconductor Equipment		—		931,500		—		931,500
Total Convertible Preferred Stocks		4,455,090		2,095,138		145,250		6,695,478
Total Preferred Stocks		5,545,436		3,096,533		145,250		8,787,219
Closed End Investment Companies		477,150		—		—		477,150
Short-Term Investments		—		9,868,711		—		9,868,711
Total	$	23,765,919	$	355,419,503	$	1,116,943	$	380,302,365

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

|  102

Notes to Financial Statements – continued

September 30, 2010

Intermediate Duration Bond Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
ABS Car Loan	$	—	$	127,758	$	160,000	$	287,758
All Other Bonds and Notes(a)		—		35,498,448		—		35,498,448
Total Bonds and Notes		—		35,626,206		160,000		35,786,206
Short-Term Investments		—		2,264,300		—		2,264,300
Total	$	—	$	37,890,506	$	160,000	$	38,050,506

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

Investment Grade Fixed Income Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes(a)	$	—	$	463,840,249	$	—	$	463,840,249
Preferred Stocks
Convertible Preferred Stocks
Automotive		3,245,902		—		—		3,245,902
Capital Markets		—		1,307,541		—		1,307,541
Diversified Financial Services		922,375		925,000		—		1,847,375
Total Convertible Preferred Stocks		4,168,277		2,232,541		—		6,400,818
Non-Convertible Preferred Stocks
Banking		—		144,925		—		144,925
Electric Utilities		233,840		30,591		—		264,431
Multi-Utilities		1,864		—		—		1,864
Software		—		3,164,063		—		3,164,063
Total Non-Convertible Preferred Stocks		235,704		3,339,579		—		3,575,283
Total Preferred Stocks		4,403,981		5,572,120		—		9,976,101
Common Stocks(a)		473,885		—		—		473,885
Short-Term Investments		—		7,461,079		—		7,461,079
Total	$	4,877,866	$	476,873,448	$	—	$	481,751,314

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

103  |

Notes to Financial Statements – continued

September 30, 2010

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of September 30, 2010:

Bond Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2010
Bonds and Notes
Non-Convertible Bonds
Airlines	$	4,164,511	$	11,949	$	—	$	1,548,332		$	49,145,327		$	—	$	(4,164,511	)	$	50,705,608
Automotive		3,570,396		—		—		—			—			—		(3,570,396	)		—
Chemicals		25,744,100		—		—		—			—			—		(25,744,100	)		—
Diversified Manufacturing		30,625,436		—		—		—			—			—		(30,625,436	)		—
Integrated Energy		1,447,652		—		—		—			—			—		(1,447,652	)		—
Non-Captive Consumer		5,428,994		219,441		101,905		(47,779	)		(5,702,561	)		—		—			—
Non-Captive Diversified		4,017,538		—		—		—			—			—		(4,017,538	)		—
Supranational		45,293,529		—		—		—			—			—		(45,293,529	)		—
Technology		225,000		—		—		—			—			—		(225,000	)		—
Convertible Bonds
Technology		7,657,650		147,192		355,282		254,876			(8,415,000	)		—		—			—
Wirelines		68,341,380		—		—		—			—			—		(68,341,380	)		—
Preferred Stocks
Convertible Preferred Stocks
Electric Utilities		7,293,125		—		—		—			—			—		—			7,293,125
REITs—Hotels		616,400		—		—		—			—			—		(616,400	)		—
Total	$	204,425,711	$	378,582	$	457,187	$	1,755,429		$	35,027,766		$	—	$	(184,045,942	)	$	57,998,733

Debt securities valued at $183,429,542 were transferred from Level 3 to Level 2 during the year ended September 30, 2010. At September 30, 2009, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund; at September 30, 2010, securities valued at $138,136,013 were valued on the basis of evaluated bids furnished to the Fund by a pricing service where inputs are observable to the Fund and securities valued at $45,293,529 were valued using broker-dealer bid quotations based on inputs observable to the Fund.

A preferred stock valued at $616,400 was transferred from Level 3 to Level 1 during the year ended September 30, 2010. At September 30, 2009, this security was valued using a broker-dealer bid quotation based on inputs unobservable to the Fund; at September 30, 2010, this security was valued at the market price in accordance with the Fund’s valuation policies.

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

|  104

Notes to Financial Statements – continued

September 30, 2010

Fixed Income Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)		Net Purchases (Sales)			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2010
Bonds and Notes
Non-Convertible Bonds
Automotive	$	2,281,964	$	—	$	—	$	—	$	—		$	—	$	(2,281,964	)	$	—
Chemicals		3,531,800		—		—		—		—			—		(3,531,800	)		—
Integrated Energy		1,206,376		—		—		—		—			—		(1,206,376	)		—
Life Insurance		450,000		—		—		—		—			—		(450,000	)		—
Non-Captive Diversified		250,188		511		—		234,855		(485,554	)		—		—			—
Convertible Bonds
Technology		330,330		5,474		13,291		13,905		(363,000	)		—		—			—
Wirelines		3,222,400		—		—		—		—			—		(3,222,400	)		—
Preferred Stocks
Convertible Preferred Stocks
REITs—Hotels		28,750		—		—		—		—			—		(28,750	)		—
Total	$	11,301,808	$	5,985	$	13,291	$	248,760	$	(848,554	)	$	—	$	(10,721,290	)	$	—

Debt securities valued at $10,692,540 were transferred from Level 3 to Level 2 during the year ended September 30, 2010. At September 30, 2009, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund; at September 30, 2010, these securities were valued on the basis of evaluated bids furnished to the Fund by a pricing service where inputs are observable to the Fund.

A preferred stock valued at $28,750 was transferred from Level 3 to Level 1 during the year ended September 30, 2010. At September 30, 2009, this security was valued using a broker-dealer bid quotation based on inputs unobservable to the Fund; at September 30, 2010, this security was valued at the market price in accordance with the Fund’s valuation policies.

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

Global Bond Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2010
Bonds and Notes
Non-Convertible Bonds
Canada	$	—	$	—	$	—		$	(9,372	)	$	5,074,976		$	—	$	—		$	5,065,604
Ireland		4,139,625		2,399		(77,913	)		6,195			(4,070,306	)		—		—			—
Supranational		6,678,449		—		—			—			—			—		(6,678,449	)		—
United States		14,464,520		—		—			—			—			—		(14,464,520	)		—
Total	$	25,282,594	$	2,399	$	(77,913	)	$	(3,177	)	$	1,004,670		$	—	$	(21,142,969	)	$	5,065,604

Debt securities valued at $21,142,969 were transferred from Level 3 to Level 2 during the year ended September 30, 2010. At September 30, 2009, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund; at September 30, 2010, securities valued at $14,464,520 were valued on the basis of evaluated bids furnished to the Fund by a pricing service where inputs are observable to the Fund and securities valued at $6,678,449 were valued using broker-dealer bid quotations based on inputs observable to the Fund.

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

105  |

Notes to Financial Statements – continued

September 30, 2010

Institutional High Income Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2010
Bonds and Notes
Non-Convertible Bonds
Airlines	$	347,042	$	229	$	—		$	29,672		$	941,793		$	—	$	(347,043	)	$	971,693
Automotive		355,516		719		69,257			(29,740	)		(371,861	)		—		(23,891	)		—
Chemicals		2,658,860		—		—			—			—			—		(2,658,860	)		—
Non-Captive Consumer		3,195,119		35,188		(72,807	)		198,621			(3,356,121	)		—		—			—
Supranational		120,736		—		—			—			—			—		(120,736	)		—
Convertible Bonds
Technology		1,204,840		45,293		114,831			(40,964	)		(1,324,000	)		—		—			—
Wirelines		2,342,600		—		—			—			—			—		(2,342,600	)		—
Preferred Stocks
Convertible Preferred Stocks
Electric Utilities		145,250		—		—			—			—			—		—			145,250
REITs—Hotels		12,650		—		—			—			—			—		(12,650	)		—
Total	$	10,382,613	$	81,429	$	111,281		$	157,589		$	(4,110,189	)	$	—	$	(5,505,780	)	$	1,116,943

Debt securities valued at $5,493,130 were transferred from Level 3 to Level 2 during the year ended September 30, 2010. At September 30, 2009, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund; at September 30, 2010, securities valued at $5,372,394 were valued on the basis of evaluated bids furnished to the Fund by a pricing service where inputs are observable to the Fund and securities valued at $120,736 were valued using broker-dealer bid quotations based on inputs observable to the Fund.

A preferred stock valued at $12,650 was transferred from Level 3 to Level 1 during the year ended September 30, 2010. At September 30, 2009, this security was valued using a broker-dealer bid quotation based on inputs unobservable to the Fund; at September 30, 2010, this security was valued at the market price in accordance with the Fund’s valuation policies.

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

Intermediate Duration Bond Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Net Purchases (Sales)			Transfers into Level 3		Transfers out of Level 3		Balance as of September 30, 2010
Bonds and Notes
ABS Car Loan	$	—	$	—	$	—		$	29	$	159,971		$	—	$	—	$	160,000
ABS Home Equity		92,043		—		(27,868	)		81,718		(145,893	)		—		—		—
Total	$	92,043	$	—	$	(27,868	)	$	81,747	$	14,078		$	—	$	—	$	160,000

|  106

Notes to Financial Statements – continued

September 30, 2010

Investment Grade Fixed Income Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2010
Bonds and Notes
Non-Convertible Bonds
ABS Home Equity	$	106,635	$	—	$	(29,207	)	$	91,594		$	(169,022	)	$	—	$	—		$	—
ABS Other		2,345,000		—		—			—			—			—		(2,345,000	)		—
Airlines		1,697,038		—		—			—			—			—		(1,697,038	)		—
Diversified Manufacturing		716,291		—		—			—			—			—		(716,291	)		—
Non-Captive Consumer		656,624		403		42			32,643			(689,712	)		—		—			—
Convertible Bonds
Technology		43,680		1,729		4,250			(1,659	)		(48,000	)		—		—			—
Total	$	5,565,268	$	2,132	$	(24,915	)	$	122,578		$	(906,734	)	$	—	$	(4,758,329	)	$	—

Debt securities valued at $4,758,329 were transferred from Level 3 to Level 2 during the year ended September 30, 2010. At September 30, 2009, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund; at September 30, 2010, these securities were valued on the basis of evaluated bids furnished to the Fund by a pricing service where inputs are observable to the Fund.

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

4.Derivatives. Derivative instruments are defined as financial instruments whose value and performance are based on the value and performance of another security or financial instrument. Derivative instruments that the Funds currently use include forward foreign currency contracts, futures contracts and swaps (including credit default swaps).

The Funds that may invest in foreign investments are subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. Certain Funds may enter into forward foreign currency contracts for hedging purposes to protect the value of the Funds’ holdings of foreign securities. Certain Funds may also use forward foreign currency contracts to gain exposure to foreign currencies, regardless of whether securities denominated in such currencies are held in the funds. During the year ended September 30, 2010, Global Bond Fund engaged in forward foreign currency transactions for hedging purposes and to gain exposure to foreign currencies and Inflation Protected Securities Fund engaged in forward foreign currency transactions for hedging purposes.

The Funds are subject to the risk that changes in interest rates will affect the value of the Funds’ investments in fixed income securities. A Fund will be subject to increased interest rate risk to the extent that it invests in fixed-income securities with longer maturities or durations, as compared to investing in fixed-income securities with shorter maturities or durations. The Funds may use futures contracts to manage their duration in order to control interest rate risk without having to buy or sell portfolio securities. During the year ended September 30, 2010, Global Bond Fund and Intermediate Duration Bond Fund used futures contracts in accordance with this objective.

The Funds are subject to the risk that companies in which the Funds invest will fail financially or otherwise be unwilling or unable to meet their obligations to the Funds. The Funds may use credit default swaps to reduce their credit exposure to issuers of bonds they hold without having to sell the bonds. As a protection buyer, the Funds have the ability to hedge the downside risk of an issuer or group of issuers. As a protection seller, the Funds have the ability to gain exposure to an issuer or group of issuers whose bonds are unavailable or in short supply in the cash bond market, as well as realize additional income in the form of the fees paid by the protection buyer. During the year ended September 30, 2010, Global Bond Fund engaged in credit default swap transactions as a protection buyer for hedging purposes. As of September 30, 2010, there were no open swaps.

Each Fund is party to agreements with counterparties that govern transactions in forward foreign currency contracts and swap transactions. These agreements contain contingent features that allow the counterparties to terminate open contracts early if the net asset value of a Fund declines beyond a certain threshold. If such contingent features were to be triggered, the counterparties could request immediate settlement of open contracts at current fair value.

107  |

Notes to Financial Statements – continued

September 30, 2010

The following is a summary of derivative instruments for Global Bond Fund as of September 30, 2010:

Statements of Assets and Liabilities Caption	Foreign Exchange Contracts			Interest Rate Contracts
Assets
Unrealized appreciation on forward foreign currency contracts	$	4,053,591			—
Liabilities
Unrealized depreciation on forward foreign currency contracts		(3,197,621	)		—
Payable to broker—variation margin on open futures contracts		—			(28,125	)*

* Unrealized depreciation on open futures contracts as of September 30, 2010 is $521,136.

Transactions in derivative instruments for Global Bond Fund during the year ended September 30, 2010 were as follows:

Statements of Operations Caption	Foreign Exchange Contracts			Credit Contracts			Interest Rate Contracts
Net Realized Gain (Loss) on:
Foreign currency transactions*	$	2,566,381		$	—		$	—
Swap agreements		—			(442,957	)		—
Net Change in Unrealized Appreciation (Depreciation) on:
Foreign currency transactions*		(665,575	)		—			—
Futures contracts		—			—			(521,136	)
Swap agreements		—			197,561			—

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

Transactions in derivative instruments for Inflation Protected Securities Fund during the year ended September 30, 2010 were as follows:

Statements of Operations Caption	Foreign Exchange Contracts
Net Realized Gain (Loss) on:
Foreign currency transactions*	$	1,234
Net Change in Unrealized Appreciation (Depreciation) on:
Foreign currency translations*		(1,234	)

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

Transactions in derivative instruments for Intermediate Duration Bond Fund during the year ended September 30, 2010 were as follows:

Statements of Operations Caption	Interest Rate Contracts
Net Realized Gain (Loss) on:
Futures contracts	$	64,582
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		(21,914	)

As the Funds value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting under authoritative guidance for derivative instruments. The Funds’ investments in derivatives may represent an economic hedge; however, they are considered to be non-hedge transactions for the purpose of these disclosures.

|  108

Notes to Financial Statements – continued

September 30, 2010

Volume of derivative activity, as a percentage of net assets, for Global Bond Fund, Inflation Protected Securities Fund and Intermediate Duration Bond Fund based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the year ended September 30, 2010:

Global Bond Fund	Forwards		Swaps		Futures
Average Notional Amount Outstanding		8.56%		1.23%		0.22%
Highest Notional Amount Outstanding		14.13%		2.07%		2.60%
Lowest Notional Amount Outstanding		3.59%		0.00%		0.00%
Notional Amount Outstanding as of September 30, 2010		10.07%		0.00%		2.60%
Inflation Protected Securities Fund	Forwards
Average Notional Amount Outstanding		0.30%
Highest Notional Amount Outstanding		0.00%
Lowest Notional Amount Outstanding		0.00%
Notional Amount Outstanding as of September 30, 2010		0.00%
Intermediate Duration Bond Fund	Futures
Average Notional Amount Outstanding		0.75%
Highest Notional Amount Outstanding		1.24%
Lowest Notional Amount Outstanding		0.00%
Notional Amount Outstanding as of September 30, 2010		0.00%

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

5.Purchases and Sales of Securities. For the year ended September 30, 2010, 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	$	293,032,225	$	338,562,195	$	4,695,271,508	$	4,890,483,223
Fixed Income Fund		7,750,681		7,883,814		157,176,037		178,063,828
Global Bond Fund		354,088,251		330,180,629		1,910,076,406		1,695,385,485
Inflation Protected Securities Fund		5,378,163		6,532,380		219,462		307,412
Institutional High Income Fund		—		—		77,736,221		188,720,708
Intermediate Duration Bond Fund		12,104,629		3,994,535		8,704,479		8,890,725
Investment Grade Fixed Income Fund		—		11,397,273		114,855,827		163,016,479

6.   Management Fees and Other Transactions with Affiliates.

a.  Management Fees. Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to each Fund. Separate management agreements for each Fund in effect for the year ended September 30, 2010, 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 Bond 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%

Loomis Sayles has given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes and extraordinary expense. These undertakings are in effect until January 31, 2011 and will be reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.

109  |

Notes to Financial Statements – continued

September 30, 2010

For the year ended September 30, 2010, 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
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%	0.65%	—
Institutional High Income Fund	0.75%	—	—
Intermediate Duration Bond Fund	0.40%	0.65%	—
Investment Grade Fixed Income Fund	0.55%	—	—

Loomis Sayles shall be permitted to recover expenses it has borne under the expense limitation agreements (whether through waiver of its management fees or otherwise) on a class by class basis in later periods to the extent the expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such waived/reimbursed fees or expenses more than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed.

For the year ended September 30, 2010, the management fees for each Fund were as follows:

	Gross Management Fees		Waivers of Management Fees1		Net Management Fees		Percentage of Average Daily Net Assets
Fund							Gross		Net
Bond Fund	$	97,620,601	$	—	$	97,620,601		0.51%		0.51%
Fixed Income Fund		3,919,095		—		3,919,095		0.50%		0.50%
Global Bond Fund		11,507,071		—		11,507,071		0.55%		0.55%
Inflation Protected Securities Fund		37,003		37,003		—		0.25%		0.00%
Institutional High Income Fund		2,377,372		—		2,377,372		0.60%		0.60%
Intermediate Duration Bond Fund		79,087		79,087		—		0.25%		0.00%
Investment Grade Fixed Income Fund		2,009,718		—		2,009,718		0.40%		0.40%

¹ Management fee waivers are subject to possible recovery until September 30, 2011.

For the year ended September 30, 2010, class-specific expenses have been reimbursed as follows:

	Reimbursement2
Fund	Institutional Class		Retail Class		Admin Class		Total
Bond Fund	$	—	$	—	$	18,548	$	18,548
Inflation Protected Securities Fund		2,919		75		—		2,994
Intermediate Duration Bond Fund		872		82		—		954

In addition, the investment adviser reimbursed non-class-specific expenses of Inflation Protected Securities Fund and Intermediate Duration Bond Fund in the amounts of $81,846 and $26,028, respectively, for the year ended September 30, 2010.² Reimbursements owed to the Funds as of September 30, 2010 are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.

² Expense reimbursements are subject to possible recovery until September 30, 2011.

For the year ended September 30, 2010, expense reimbursements related to the prior fiscal year were recovered as follows:

	Recovered Expenses
Fund	Institutional Class		Retail Class		Admin Class		Total
Bond Fund	$	—	$	356,045	$	—	$	356,045
Global Bond Fund		—		105,094		—		105,094

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

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

|  110

Notes to Financial Statements – continued

September 30, 2010

Pursuant to Rule 12b-1 under the 1940 Act, Bond Fund, Global Bond Fund, Inflation Protected Securities Fund and Intermediate Duration Bond Fund have adopted a Distribution Plan relating to each Fund’s Retail Class shares (the “Retail Class Plan”), and the Bond Fund has adopted a Distribution Plan relating to its Admin Class shares (the “Admin Class Plan”).

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

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

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

For the year ended September 30, 2010, the Funds paid the following service and distribution fees:

	Service Fees				Distribution Fees
Fund	Retail Class		Admin Class		Retail Class		Admin Class
Bond Fund	$	—	$	607,847	$	19,813,675	$	607,847
Global Bond Fund		—		—		2,444,133		—
Inflation Protected Securities Fund		—		—		33		—
Intermediate Duration Bond Fund		—		—		44		—

c.  Administrative Fees. Natixis Asset Management Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Pursuant to an agreement among Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”), Hansberger International Series and Natixis Advisors, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion and 0.0350% of such assets in excess of $60 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds are subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

Prior to July 1, 2010, each Fund paid Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and 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 Hansberger International Series of $10 million, which is reevaluated on an annual basis. New funds were subject to a fee for the first twelve months of operations of $75,000 plus $12,500 per additional class and an additional $75,000 if managed by multiple subadvisers.

For the year ended September 30, 2010, each Fund paid the following administrative fees to Natixis Advisors:

Fund	Administrative Fees
Bond Fund	$	9,127,874
Fixed Income Fund		376,477
Global Bond Fund		1,011,213
Inflation Protected Securities Fund		7,110
Institutional High Income Fund		190,407
Intermediate Duration Bond Fund		15,189
Investment Grade Fixed Income Fund		241,404

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

111  |

Notes to Financial Statements – continued

September 30, 2010

for providing those services. Certain services would be provided by the Funds if the shares of those customers were registered directly with the Funds’ transfer agent. Accordingly, the Funds agreed to pay a portion of the intermediary fees attributable to shares of the Fund held by the intermediaries (which generally is a percentage of the value of shares held) not exceeding what the Funds would have paid their transfer agent had each customer’s shares been registered directly with the transfer agent instead of held through the intermediaries. Natixis Distributors pays the remainder of the fees.

For the year ended September 30, 2010, the Funds paid the following sub-transfer agent fees, which are reflected in transfer agent fees and expenses in the Statements of Operations.

	Sub-Transfer Agent Fees
Fund	Institutional Class		Retail Class		Admin Class
Bond Fund	$	4,763,812	$	6,120,027	$	277,813
Fixed Income Fund		—		—		—
Global Bond Fund		320,754		871,665		—
Inflation Protected Securities Fund		5,722		6		—
Institutional High Income Fund		5,100		—		—
Intermediate Duration Bond Fund		820		8		—
Investment Grade Fixed Income Fund		—		—		—

e.  Trustees Fees and Expenses. The Trust does not pay any compensation directly to its officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distributors, Natixis US or their affiliates. Effective January 1, 2010, the Chairperson of the Board receives a retainer fee at the annual rate of $250,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $80,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chairman receives an additional retainer fee at an annual rate of $15,000. Each Contract Review and Governance Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. Each member of the ad hoc Committee on Alternative Investments received a one-time fee of $10,000. The ad hoc Committee on Alternative Investments is not a standing committee. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2010, the Chairperson of the Board received a retainer fee at the annual rate of $200,000. The Chairperson did not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attended. Each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $65,000. Each Independent Trustee also received a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attended in person and $3,750 for each meeting of the Board of Trustees that he or she attended telephonically. In addition, each committee chairman received an additional retainer fee at an annual rate of $10,000. Each Contract Review and Governance Committee member was compensated $5,000 for each Committee meeting that he or she attended in person and $2,500 for each meeting that he or she attended telephonically. Each Audit Committee member was compensated $6,250 for each Committee meeting that he or she attended in person and $3,125 for each meeting that he or she attended telephonically.

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

f.  Payments by Affiliates. For the year ended September 30, 2010, Loomis Sayles reimbursed Bond Fund and Institutional High Income Fund $111,332 and $2,783, respectively, for losses incurred in connection with a trading error.

|  112

Notes to Financial Statements – continued

September 30, 2010

7.Class-Specific Expenses. For the year ended September 30, 2010, the Funds paid the following class-specific transfer agent fees and expenses (including sub-transfer agent fees):

	Transfer Agent Fees and Expenses
Fund	Institutional Class		Retail Class		Admin Class
Bond Fund	$	5,215,384	$	7,352,085	$	291,485
Fixed Income Fund		3,435		—		—
Global Bond Fund		331,156		1,031,455		—
Inflation Protected Securities Fund		7,896		75		—
Institutional High Income Fund		8,326		—		—
Intermediate Duration Bond Fund		1,800		82		—
Investment Grade Fixed Income Fund		2,092		—		—

8.Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participates in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

Prior to March 10, 2010, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participated in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participated in the line of credit. Interest was charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 0.75%. In addition, a commitment fee of 0.125% per annum, payable at the end of each calendar quarter, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the year ended September 30, 2010, none of the Funds had borrowings under these agreements.

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

10.Concentration of Ownership. At September 30, 2010, Loomis Sayles Distributors, L.P. and Loomis Sayles Trust Co. LLC owned 257,791 shares, equal to 21.50% of Inflation Protected Securities Fund’s shares outstanding. At September 30, 2010, 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		941,711		2,098,695
Fixed Income Fund		—		—
Global Bond Fund		—		473,892
Inflation Protected Securities Fund		—		272,362
Institutional High Income Fund		—		1,261,398
Intermediate Duration Bond Fund		—		66,197
Investment Grade Fixed Income Fund		—		—

From time to time, the Funds may have a concentration of several shareholders holding a significant percentage of shares outstanding. Investment activities of these shareholders could have material impacts on the Funds. As of September 30, 2010, certain Funds had shareholders that held greater than 5% of the fund’s outstanding shares. Such ownership may be beneficially held by multiple individuals or entities other than the owner of record. The number of greater than 5% shareholders and the aggregate percentage of net assets represented by such ownership was as follows:

Fund	Number of Greater Than 5% Shareholders	Percentage of Ownership
Fixed Income Fund	3	19.26%
Global Bond Fund	1	11.20%
Inflation Protected Securities Fund	3	28.69%
Intermediate Duration Bond Fund	5	87.47%
Investment Grade Fixed Income Fund	5	32.88%

113  |

Notes to Financial Statements – continued

September 30, 2010

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

	Bond Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		225,791,097		$	3,060,935,314			447,762,869		$	4,881,257,039
Issued in connection with the reinvestment of distributions		41,506,088			563,071,668			54,809,548			585,511,507
Issued from subscriptions-in-kind*		—			—			2,661,512			27,012,678
Redeemed		(314,876,391	)		(4,250,749,039	)		(310,096,324	)		(3,370,767,748	)
Net change		(47,579,206	)	$	(626,742,057	)		195,137,605		$	2,123,013,476

* Issued in exchange for portfolio securities contributed to the Fund in-kind by shareholders on February 11, 2009 and March 6, 2009. Contributions included $8,628,801 of securities and $120,933 in receivables on February 11, 2009, and $17,854,274 of securities and $408,670 in receivables on March 6, 2009. These securities contributed on both dates were part of a portfolio that was previously managed by Loomis Sayles.

Retail Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		155,856,734		$	2,110,792,790			262,029,984		$	2,844,963,241
Issued in connection with the reinvestment of distributions		31,177,594			421,514,998			45,692,554			482,421,382
Redeemed		(195,407,565	)		(2,642,018,934	)		(296,153,704	)		(3,178,299,099	)
Net change		(8,373,237	)	$	(109,711,146	)		11,568,834		$	149,085,524
Admin Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		6,876,197		$	92,742,622			6,268,750		$	68,449,514
Issued in connection with the reinvestment of distributions		878,950			11,862,601			1,328,590			13,943,089
Redeemed		(6,397,886	)		(86,086,907	)		(7,894,921	)		(85,275,059	)
Net change		1,357,261		$	18,518,316			(297,581	)	$	(2,882,456	)
Increase (decrease) from capital share transactions		(54,595,182	)	$	(717,934,887	)		206,408,858		$	2,269,216,544
	Fixed Income Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		5,773,068		$	76,057,230			12,051,705		$	127,636,419
Issued in connection with the reinvestment of distributions		2,880,044			36,461,361			5,247,998			48,963,816
Redeemed		(10,449,999	)		(137,737,563	)		(9,798,873	)		(111,769,348	)
Increase (decrease) from capital share transactions		(1,796,887	)	$	(25,218,972	)		7,500,830		$	64,830,887

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Notes to Financial Statements – continued

September 30, 2010

	Global Bond Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		26,748,125		$	431,989,257			19,335,028		$	274,432,928
Issued in connection with the reinvestment of distributions		2,225,990			35,769,761			3,749,367			50,235,682
Issued from subscriptions-in-kind*		—			—			6,336,840			91,884,176
Redeemed		(17,516,539	)		(281,002,249	)		(45,498,904	)		(622,417,697	)
Net change		11,457,576		$	186,756,769			(16,077,669	)	$	(205,864,911	)

* Issued in exchange for portfolio securities contributed to the Fund in-kind by shareholders on June 11, 2009. Contributions included $90,341,115 of securities and $1,543,061 in receivables. These securities contributed were part of a portfolio that was previously managed by Loomis Sayles.

Retail Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		23,865,070		$	381,825,710			19,906,248		$	283,551,918
Issued in connection with the reinvestment of distributions		1,915,462			30,512,388			3,660,217			48,438,738
Redeemed		(22,406,075	)		(355,736,901	)		(41,022,745	)		(552,609,501	)
Net change		3,374,457		$	56,601,197			(17,456,280	)	$	(220,618,845	)
Increase (decrease) from capital share transactions		14,832,033		$	243,357,966			(33,533,949	)	$	(426,483,756	)
	Inflation Protected Securities Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		791,178		$	8,469,372			390,294		$	3,782,304
Issued in connection with the reinvestment of distributions		39,383			421,149			12,682			124,583
Redeemed		(973,654	)		(10,475,324	)		(693,739	)		(6,657,359	)
Net change		(143,093	)	$	(1,584,803	)		(290,763	)	$	(2,750,472	)
Retail Class*	Shares			Amount			Shares			Amount
Issued from the sale of shares		6,779		$	73,519			—		$	—
Issued in connection with the reinvestment of distributions		20			221			—			—
Redeemed		—			—			—			—
Net change		6,799		$	73,740			—		$	—
Increase (decrease) from capital share transactions		(136,294	)	$	(1,511,063	)		(290,763	)	$	(2,750,472	)

* From commencement of Class operations on May 28, 2010 through September 30, 2010.

	Institutional High Income Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		8,849,076		$	67,432,762			39,568,017		$	226,395,012
Issued in connection with the reinvestment of distributions		3,532,180			25,502,337			3,472,385			16,528,551
Redeemed		(26,865,854	)		(202,621,617	)		(12,239,881	)		(73,272,876	)
Increase (decrease) from capital share transactions		(14,484,598	)	$	(109,686,518	)		30,800,521		$	169,650,687

115  |

Notes to Financial Statements – continued

September 30, 2010

	Intermediate Duration Bond Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		763,776		$	7,876,084			100,635		$	921,405
Issued in connection with the reinvestment of distributions		110,093			1,123,452			127,709			1,149,588
Redeemed		(196,295	)		(2,008,973	)		(1,067,803	)		(9,409,096	)
Net change		677,574		$	6,990,563			(839,459	)	$	(7,338,103	)
Retail Class*	Shares			Amount			Shares			Amount
Issued from the sale of shares		11,573		$	120,851			—		$	—
Issued in connection with the reinvestment of distributions		38			401			—			—
Redeemed		(3,835	)		(40,575	)		—			—
Net change		7,776		$	80,677			—		$	—
Increase (decrease) from capital share transactions		685,350		$	7,071,240			(839,459	)	$	(7,338,103	)

* From commencement of Class operations on May 28, 2010 through September 30, 2010.

	Investment Grade Fixed Income Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		3,726,576		$	47,540,397			20,294,294		$	215,850,024
Issued in connection with the reinvestment of distributions		1,587,990			20,286,002			2,114,771			22,338,478
Redeemed		(12,508,551	)		(159,771,890	)		(4,465,866	)		(50,432,732	)
Increase (decrease) from capital share transactions		(7,193,985	)	$	(91,945,491	)		17,943,199		$	187,755,770

|  116

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 Bond 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 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 Bond Fund (formerly 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, 2010, 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, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 22, 2010

117  |

Special Meeting of Shareholders (Unaudited)

A special meeting of shareholders of the Trust was held on May 27, 2010 to consider a proposal to elect four Trustees to the Board of Trustees. The proposal was approved by shareholders of the Trust. The results of the shareholder vote were as follows:

Nominee	Voted “FOR”*		Withheld*
Kenneth A. Drucker		1,441,815,530		17,903,098
Wendell J. Knox		1,441,546,136		18,172,492
Erik R. Sirri		1,441,468,045		18,250,582
Peter J. Smail		1,439,322,473		20,396,155

* Trust-wide voting results.

In addition to the Trustees named above, the following also serve as Trustees of the Trust: Graham T. Allison, Jr., Edward A. Benjamin, Daniel M. Cain, Sandra O. Moose, Cynthia L. Walker, Robert J. Blanding and John T. Hailer.

|  118

2010 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2010, 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
Bond		1.56%
Fixed Income		2.45%
Institutional High Income		2.14%
Investment Grade Fixed Income		0.56%

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, 2010, unless subsequently determined to be different.

Fund	Amount
Institutional High Income	$	11,002

Qualified Dividend Income. For the fiscal year ended September 30, 2010, the Funds below will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 15% depending on an individual’s tax bracket. If the Funds pay a distribution during calendar year 2010, complete information will be reported in conjunction with Form 1099-DIV.

Fund

Bond

Fixed Income

Institutional High Income

Investment Grade Fixed Income

119  |

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 Natixis Funds at 800-225-5478.

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 During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
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	42 Director, Taubman Centers, Inc. (real estate investment trust)	Significant experience on Board of Trustees of the Trust and/or other business organizations; government experience (including as Assistant Secretary of Defense under President Clinton); academic experience
Edward A. Benjamin (1938)	Trustee since 2002 Chairman of the Contract Review and Governance Committee	Retired	42 Formerly, Director, Precision Optics Corporation (optics manufacturer)	Significant experience on Board of Trustees of the Trust and/or other business organizations; significant experience providing legal counsel to boards, funds, advisers and other financial institutions (former partner at Ropes & Gray LLP)
Daniel M. Cain (1945)	Trustee since 2003 Chairman of the Audit Committee	Chairman (formerly, President and Chief Executive Officer) of Cain Brothers & Company, Incorporated (investment banking)	42 Director, Sheridan Healthcare Inc. (physician practice management)	Significant experience on Board of Trustees of the Trust and/or other business organizations; experience in the financial industry, including roles as chairman and former chief executive officer of an investment banking firm
Kenneth A. Drucker (1945)	Trustee since 2008 Audit Committee Member	Formerly, Vice President and Treasurer, Sequa Corp. (aerospace, automotive and metal manufacturing)	42 Formerly, Director, M Fund, Inc. (investment company); Director, Gateway Trust (investment company)	Significant experience on Board of Trustees of the Trust and/or other business organizations; executive experience including as treasurer of a corporation

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Trustee and Officer Information – continued

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 During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
Wendell J. Knox (1948)	Trustee since 2009 Contract Review and Governance Committee Member	Director (formerly, President and Chief Executive Officer) of Abt Associates Inc. (research and consulting)	42 Director, Eastern Bank (commercial bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on Board of Trustees of the Trust and/or other business organizations; executive experience including roles as president and chief executive officer of a consulting company
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)	42 Director, Verizon Communications; Director, AES Corporation (international power company); Formerly, Director, Rohm and Haas Company (specialty chemicals)	Significant experience on Board of Trustees of the Trust and/or other business organizations; executive experience at a management consulting company
Erik R. Sirri1 (1958)	Trustee since 2009 Contract Review and Governance Committee Member	Professor of Finance at Babson College; formerly, Director of the Division of Trading and Markets at the Securities and Exchange Commission	42 None	Experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience and training as an economist
Peter J. Smail1 (1952)	Trustee since 2009 Contract Review and Governance Committee Member	Retired; formerly, President and Chief Executive Officer of Pyramis Global Advisors (investment management)	42 None	Mutual fund industry and executive experience, including roles as president and chief executive officer for an investment adviser
Cynthia L. Walker (1956)	Trustee since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School; and formerly, Dean for Finance and Chief Financial Officer, Harvard Medical School	42 None	Significant experience on Board of Trustees of the Trust and/or other business organizations; executive experience in a variety of academic organizations, including roles as dean for finance and administration

121  |

Trustee and Officer Information – continued

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 During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
Interested Trustees
Robert J. Blanding2 (1947) 555 California Street San Francisco, CA 94104	Trustee since 2002 President and Chief Executive since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	42 None	Significant experience on Board of Trustees of the Trust; continuing service as president, chairman, and Chief Executive Officer of Loomis, Sayles & Company, L.P.
John T. Hailer3 (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.	42 None	Significant experience on Board of Trustees of the Trust; continuing experience as Chief Executive Officer of Natixis Global Asset Management, L.P.

* Each trustee serves until retirement, resignation or removal from the Board of Trustees. The current retirement age is 72; however, the trustees have designated 2010 as a transition period so that any trustees who are currently age 72 or older or who reach age 72 during the remainder of 2010 will not be required to retire until the end of calendar year 2011. 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 November 20, 2009.

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

1 Mr. Sirri and Mr. Smail were appointed as trustees effective December 1, 2009.

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

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

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Trustee and Officer Information – continued

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)	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.
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.

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

** Each person listed above, except as noted, holds the same position(s) with the Fund Complex. Mr. Fuss is not an officer of the Natixis Funds Trusts or the Hansberger International Series. Previous positions during the past five years with 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.

123  |

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	19
Statements of Operations	20
Statements of Changes in Net Assets	21
Financial Highlights	23
Notes to Financial Statements	25

ANNUAL REPORT

SEPTEMBER 30, 2010

LOOMIS SAYLES HIGH INCOME OPPORTUNITIES FUND

Fund and manager review

FUND FACTS

Managers:

Matthew Eagan, CFA

Dan Fuss, CFA, CIC

Kathleen Gaffney, CFA

Elaine Stokes

Symbol:

Institutional Class 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:

April 12, 2004

Net Assets:

$65.6 million

Market Conditions

A high-yield rally that emerged in early 2009 kept its momentum until May 2010, when concerns about European sovereign debt caused yields on lower-quality credits to drift higher and prices lower. Consumer confidence waned during the second quarter, as investors questioned the sustainability of the U.S. recovery. Uncertainty weighed on the high-yield market and caused investors to flee to the quality and perceived safety of U.S. Treasury securities. This caused a substantial flattening of the yield curve. Given the low interest-rate environment, many investors reached out to the long end of the curve in search of higher yields. Risk appetite returned during the third quarter, as the prospects of European Union intervention, coupled with slightly improving U.S. economic data, helped to diminish fears.

Performance Results

For the 12 months ended September 30, 2010, Loomis Sayles High Income Opportunities Fund returned 18.88%. The fund outperformed its benchmark, the Barclays Capital U.S. Corporate High-Yield Bond Index, which returned 18.44% for the period.

Explanation of Fund Performance

As the yield curve flattened during the period, the fund’s longer-than-benchmark duration strategy provided the largest contribution to performance. In addition, the fund’s positioning within below investment-grade industrials contributed to its strong performance, primarily due to low default rates combined with improving credit trends. Furthermore, an out-of-benchmark allocation to investment-grade credit bolstered fund performance, driven by strong security selection within the financials sector.

While the fund’s high-yield financials generated positive absolute performance for the period, an underweight position compared with the benchmark provided the largest drag on relative performance. In addition, weak security selection and an underweight position in lower-rated high-yield securities — those with Caa and Ca credit ratings — weighed on the fund’s relative performance. Security selection within the high-yield utilities sector also detracted from the fund’s relative results.

Outlook

We see a prolonged period of slow economic growth and low interest rates in the United States, Europe and Japan as the most influential and likely scenario for the remainder of 2010. Increased investor demand for yield should continue to benefit sectors of the market that offer substantial premiums over government bonds. The anticipation and investment positioning surrounding a second round of U.S. quantitative easing should continue to have wide-ranging ramifications for the markets.

Overall, our portfolio themes remain largely intact. Our assessment of the credit markets is consistent with previous quarters in 2010; selected relative value opportunities are still available in the current environment. Having the research expertise to identify the right securities for a portfolio is of utmost importance. We believe the fund remains positioned to take advantage of the slowly improving global economy. We continue to see what we believe to be incremental fundamental improvement in the corporate space. Our global approach allows us to look beyond the domestic markets for security-specific opportunities as well. As relative value diminishes in certain names, we will continue to reduce position sizes selectively.

We expect market volatility to be a constant presence going forward. We plan to take advantage of this volatility by opportunistically adding securities across many of the markets available to us. We believe that a combination of improving corporate fundamentals, emerging market growth expectations that exceed those of the developed world and strong technical demand for yield have created an environment that could continue to benefit the fund in the future.

1  |

LOOMIS SAYLES HIGH INCOME OPPORTUNITIES FUND

Average Annual Returns

September 30, 2010

	1 year			5 years			Since inception(a)
Institutional Class (Inception 4/12/04)		18.88	%		7.82	%		8.44	%
Comparative Performance
Barclays Capital U.S. Corporate High-Yield Bond Index(b)		18.44			8.37			8.07
Lipper High Current Yield Funds Index(b)		17.16			6.00			6.21
Expense Ratio(c)
Institutional Class: 0.00%

Cumulative Performance

Inception to September 30, 2010

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.

^(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 U.S. government agencies are not insured by and may not be guaranteed by the U.S. government.

Because the fund can invest a significant percentage of assets in foreign securities, the value of fund shares can be adversely affected by changes in currency exchange rates, and by 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 U.S. dollar and foreign currencies may cause the value of a fund’s investments to decline. Funds that invest in securities denominated in, or receive revenues in, foreign currency are subject to currency risk. Accordingly, the purchase of fund shares should be viewed as a long-term investment.

Because the fund can invest a significant percentage of assets in debt securities that are rated below investment grade, the value of fund shares can be adversely affected by changes in economic conditions or other circumstances. These events could reduce or eliminate the capacity of issuers of these securities to make principal and interest payments. Lower-rated debt securities have speculative characteristics because of the credit risk of their issuers and may be subject to greater price volatility than higher-rated investments. In addition, the secondary market for these securities may lack liquidity which, in turn, may adversely affect the value of these securities and that of the fund. Accordingly, the purchase of fund shares should be viewed as a long-term investment.

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LOOMIS SAYLES SECURITIZED ASSET FUND

Fund and manager review

FUND FACTS

Managers:

Clifton Rowe, CFA

Alessandro Pagani, CFA

Symbol:

Institutional Class LSSAX

Objective:

High level of current income consistent with capital preservation.

Strategy:

Invests 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:

March 2, 2006

Net Assets:

$653.3 million

Market Conditions

Interest rates declined during the 12-month period that ended September 30, 2010, due to a weaker-than-expected economic rebound and the Federal Reserve Board’s (the Fed’s) commitment to a low interest-rate policy. While growth was tepid, the probability of severely negative economic scenarios diminished. As a result, yield spreads on non-government-related bonds declined significantly, generating strong price appreciation. Additionally, ongoing challenges in the mortgage markets meant many borrowers with high interest rates were unable to refinance. This led to slower-than-expected prepayments on premium mortgage-backed securities (MBS) issued by government-sponsored entities (GSEs), which contributed to strong performance.

Performance Results

For the 12 months ended September 30, 2010, Loomis Sayles Securitized Asset Fund returned 15.24%. The fund outperformed its benchmark, the Barclays Capital U.S. Securitized Bond Index, which returned 7.06% for the period.

Explanation of Fund Performance

The fund’s strong performance relative to the benchmark was driven primarily by holdings in sectors that offer a yield advantage relative to Treasuries. These included commercial mortgage-backed securities (CMBS), asset-backed securities (ABS) and residential mortgage-backed securities (RMBS). These sectors generally performed well during the period, except in the second quarter of 2010, when concerns about European sovereign debt caused yield spreads to widen. Nevertheless, as investors shifted their focus toward yield opportunities in the U.S. fixed-income markets, they favored these sectors, which offered a compelling combination of good credit quality and attractive yields. Furthermore, strong investor demand helped generate price appreciation within these sectors.

Investor risk appetites remained strong throughout most of the period, causing a shift out of high-quality securities and into higher-yielding sectors. This sentiment led to underperformance for the fund’s MBS issued by GSEs. Furthermore, in the period’s declining-rate environment, longer-maturity securities outperformed shorter-maturity securities. The fund’s overweight in shorter-maturity holdings had a negative impact on performance.

In terms of derivatives exposure, we continued to use U.S. Treasury futures to remove undesired exposure to interest-rate fluctuations. We also routinely purchased and sold mortgage “TBAs” to manage the fund’s mortgage exposure. See Note 2 of Notes to Financial Statements for a description of TBA securities.

Outlook

We expect the Fed to maintain its current interest-rate policy well into 2011, and we do not foresee any significant shift in the yield curve. Over time, interest rates should gradually rise, as modest economic growth persists. We will continue to look for opportunities to take advantage of the steep yield curve while focusing on income rather than price appreciation. We are maintaining an underweight position in MBS issued by GSEs. This sector continues to offer a modest yield advantage with strong credit quality, and we expect it to benefit from a relatively stable interest-rate environment. The fund remains overweight in the CMBS and ABS sectors. Although we expect fundamental weakness to persist in the mortgage and consumer loan markets, we believe the securities we hold are well protected from credit risk, via credit enhancements such as subordination and excess spread, and continue to offer compelling value and attractive yields.

3  |

LOOMIS SAYLES SECURITIZED ASSET FUND

Average Annual Returns

September 30, 2010

	1 year			3 years			Since inception(a)
Institutional Class (Inception 3/2/06)		15.24	%		9.52	%		7.94	%
Comparative Performance
Barclays Capital U.S. Securitized Bond Index(b)		7.06			7.21			6.49
Lipper U.S. Mortgage Funds Index(b)		7.63			6.59			5.86
Expense Ratio(c)
Institutional Class: 0.00%

Cumulative Performance

Inception to September 30, 2010

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.

^(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

Investments in mortgage securities are subject to prepayment risk, which can limit the potential for gain during a declining interest rate environment and increase the potential for loss in a rising interest rate environment. Fixed income investments entail interest rate risk (as interest rates rise bond prices usually fall), the risk of issuer default, issuer credit risk and inflation risk. The fund may invest in derivatives; this leverage can increase market exposure and magnify investment risks.

|  4

ADDITIONAL INFORMATION

Index Definitions

Lipper High Current Yield Funds Index is an unmanaged index that tracks the average performance of the 30 largest high current yield funds according to Lipper Inc.

Lipper U.S. Mortgage Funds Index is an unmanaged index that tracks the average performance of the 30 largest U.S. mortgage funds according to Lipper Inc.

Source: Lipper, Inc.

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

Barclays Capital U.S. Securitized Bond Index is an unmanaged index of asset-backed securities, collateralized mortgage-backed securities (ERISA-eligible), and fixed-rate mortgage-backed securities.

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 Securities and Exchange Commission’s (“SEC’s”) website at www.sec.gov. Information about how the Funds voted proxies relating to portfolio securities during the 12-month period ended June 30, 2010 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 FUND EXPENSES

Typically, mutual fund shareholders incur two types of costs: (1) transaction costs; 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, 2010 through September 30, 2010. 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 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period* 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,062.30		$0.00
Hypothetical (5% return before expenses)		$1,000.00		$1,025.07		$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 365 (to reflect the half-year period).

Loomis Sayles Securitized Asset Fund

Institutional Class	Beginning Account Value 4/1/2010		Ending Account Value 9/30/2010		Expenses Paid During Period* 4/1/2010 – 9/30/2010
Actual		$1,000.00		$1,060.50		$0.00
Hypothetical (5% return before expenses)		$1,000.00		$1,025.07		$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 365 (to reflect the half-year period).

5  |

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 (the “Adviser”) believes to be reasonably necessary for the Trustees to evaluate the Agreements. These materials generally include, among other items, (i) information on the investment performance of the Funds and the performance of peer groups of funds and the Funds’ performance benchmarks, (ii) information on the Funds’ advisory fees, if any, and other expenses, including information comparing the Funds’ expenses to the fees charged to institutional accounts with similar strategies managed by the Adviser and to those of peer groups of funds and information about any applicable expense caps and fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Adviser and (v) information obtained through the completion 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, if applicable, allocations to brokers affiliated with the Adviser and the use of “soft” commission dollars to pay Fund expenses and to pay for research and other similar services, (vi) the resources devoted to, and the record of compliance with, the Funds’ investment policies and restrictions, policies on personal securities transactions and other compliance policies, (vii) information about amounts invested by the Funds’ portfolio managers in the Funds or in similar accounts that they manage and (viii) the general economic outlook with particular emphasis on the mutual fund industry. Throughout the process, the Trustees are afforded the opportunity to ask questions of and request additional materials from the Adviser.

In addition to the materials requested by the Trustees in connection with their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board of Trustees that provide detailed information about the Funds’ investment performance. This information generally includes, among other things, an internal performance rating for each Fund based on agreed-upon criteria, graphs showing each Fund’s performance and fee differentials against each Fund’s peer group of funds, performance ratings provided by a third-party, total return information for various periods, and third-party performance rankings for various periods comparing a Fund against its peer group. The portfolio management team for each Fund or other representatives of the Adviser make periodic presentations to the Contract Review and Governance Committee and/or the full Board 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 Trustees also receive periodic updates between meetings.

The Board of Trustees most recently approved the continuation of the Agreements at their meeting held in June 2010. 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. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

The nature, extent and quality of the services provided to the Funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by the Adviser and its affiliates to the Funds and the resources dedicated to the Funds by the Adviser and its affiliates, including recent or planned investments by the Adviser in additional personnel or other resources. They also considered the administrative services provided by Natixis Advisors and its affiliates to the Funds.

The Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds that offers shareholders the right to exchange shares of one type of fund for shares of another type of fund, and provides a variety of fund and shareholder services.

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

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

With respect to the Funds, the Board concluded that the performance of the Funds or other factors relevant to performance supported renewal of each of the Agreements.

|  6

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. 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 and the need for the Adviser to offer competitive compensation. 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 fee, of 0%, charged to each of the Funds was fair and reasonable and supported the renewal of the Agreements.

Economies of Scale. The Trustees noted that because the Adviser has borne 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:

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

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

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

• so-called “fallout benefits” to the Adviser, such as the 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.

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

Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that each of the existing Agreements should be continued through June 30, 2011.

7  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles High Income Opportunities Fund

Principal Amount		Description	Value (†)
	Bonds and Notes – 91.7% of Net Assets
	Non-Convertible Bonds – 82.0%
		ABS Home Equity – 1.4%
$	250,000	Asset Backed Funding Certificates, Series 2006-HE1, Class A2B, 0.366%, 1/25/2037(b)	$	141,947
	80,000	Countrywide Asset-Backed Certificates, Series 2004-13, Class AF5B, 5.103%, 5/25/2035		62,509
	275,000	GSAMP Trust, Series 2006-HE5, Class A2C, 0.406%, 8/25/2036(b)		120,823
	75,000	New Century Home Equity Loan Trust, Series 2005-1, Class M3, 0.776%, 3/25/2035(b)		43,437
	125,000	New Century Home Equity Loan Trust, Series 2005-2, Class M2, 0.706%, 6/25/2035(b)		86,329
	100,000	Park Place Securities, Inc., Series 2004-WCW2, Class M2, 0.906%, 10/25/2034(b)		75,348
	225,000	Park Place Securities, Inc., Series 2005-WCW2, Class M1, 0.756%, 7/25/2035(b)		160,239
	121,069	Saxon Asset Securities Trust, Series 2004-3, Class M2, 0.906%, 12/26/2034(b)		101,513
	188,661	Structured Asset Securities Corp., Series 2007-EQ1, Class A2, 0.346%, 3/25/2037(b)		122,934
				915,079
		ABS Other – 0.1%
	73,190	Diamond Resorts Owner Trust, Series 2009-1, Class B, 12.000%, 3/20/2026, 144A		68,970
		Aerospace & Defense – 1.3%
	885,000	Bombardier, Inc., 7.450%, 5/01/2034, 144A		840,750
	35,000	Oshkosh Corp., 8.250%, 3/01/2017		37,625
				878,375
		Airlines – 3.1%
	20,294	American Airlines Pass Through Trust, Series 1993-A6, 8.040%, 9/16/2011		20,294
	140,710	Continental Airlines Pass Through Trust, Series 1997-1, Class A, 7.461%, 10/01/2016		144,228
	50,324	Continental Airlines Pass Through Trust, Series 1997-4, Class B, 6.900%, 7/02/2018		49,821
	117,894	Continental Airlines Pass Through Trust, Series 1998-1, Class B, 6.748%, 9/15/2018		114,357
	126,405	Continental Airlines Pass Through Trust, Series 1999-1, Class B, 6.795%, 2/02/2020		121,664

Principal Amount		Description	Value (†)
		Airlines – continued
$	13,516	Continental Airlines Pass Through Trust, Series 2000-2, Class B, 8.307%, 10/02/2019	$	13,651
	66,162	Continental Airlines Pass Through Trust, Series 2001-1, Class B, 7.373%, 6/15/2017		64,508
	198,000	Delta Air Lines, Inc., 9.500%, 9/15/2014, 144A		214,830
	203,140	Delta Air Lines, Inc., Series 2007-1, Class A, 6.821%, 2/10/2024		213,033
	626,946	Delta Air Lines, Inc., Series 2007-1, Class B, 8.021%, 2/10/2024		630,080
	422,145	Northwest Airlines, Inc., Series 2007-1, Class B, 8.028%, 11/01/2017		426,701
				2,013,167
		Automotive – 3.4%
	75,000	ArvinMeritor, Inc., 8.125%, 9/15/2015		75,938
	139,000	Cummins, Inc., 6.750%, 2/15/2027		151,431
	165,000	Ford Motor Co., 6.625%, 2/15/2028		156,337
	35,000	Ford Motor Co., 7.125%, 11/15/2025		34,213
	775,000	Ford Motor Co., 7.450%, 7/16/2031		807,937
	110,000	Ford Motor Co., 7.500%, 8/01/2026		110,000
	225,000	Ford Motor Credit Co. LLC, 8.000%, 12/15/2016		254,333
	320,000	Goodyear Tire & Rubber Co. (The), 7.000%, 3/15/2028		294,400
	125,000	Goodyear Tire & Rubber Co. (The), 10.500%, 5/15/2016		141,563
	200,000	TRW Automotive, Inc., 7.250%, 3/15/2017, 144A		212,500
				2,238,652
		Building Materials – 1.6%
	110,000	Masco Corp., 4.800%, 6/15/2015		108,175
	155,000	Masco Corp., 6.500%, 8/15/2032		133,025
	130,000	Owens Corning, Inc., 7.000%, 12/01/2036		130,919
	720,000	USG Corp., 6.300%, 11/15/2016		624,600
	30,000	USG Corp., 9.500%, 1/15/2018		29,437
				1,026,156
		Chemicals – 1.6%
	60,000	Georgia Gulf Corp., 9.000%, 1/15/2017, 144A		62,850
	675,000	Hercules, Inc., 6.500%, 6/30/2029		551,812
	110,000	Koppers, Inc., 7.875%, 12/01/2019		114,675

See accompanying notes to financial statements.

|  8

Portfolio of Investments – as of September 30, 2010

Loomis Sayles High Income Opportunities Fund – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		Chemicals – continued
$	165,000	LBI Escrow Corp., 8.000%, 11/01/2017, 144A	$	180,263
	150,000	Methanex Corp., 6.000%, 8/15/2015		148,392
				1,057,992
		Collateralized Mortgage Obligations – 2.7%
	157,023	Adjustable Rate Mortgage Trust, Series 2005-10, Class 5A1, 0.516%, 1/25/2036(b)		94,691
	44,590	American Home Mortgage Investment Trust, Series 2004-3, Class 3A, 2.358%, 10/25/2034(b)		32,757
	136,375	Banc of America Funding Corp., Series 2005-5, Class 1A11, 5.500%, 9/25/2035		127,340
	158,603	GSR Mortgage Loan Trust, Series 2005-AR7, Class 2A1, 2.876%, 11/25/2035(b)		138,148
	198,172	Impac CMB Trust, Series 2005-3, Class A1, 0.496%, 8/25/2035(b)		132,347
	176,953	Indymac Index Mortgage Loan Trust, Series 2005-AR3, Class 4A1, 5.170%, 4/25/2035(b)		147,571
	264,140	Lehman Mortgage Trust, Series 2005-3, Class 1A6, 0.756%, 1/25/2036(b)		176,414
	283,713	Lehman Mortgage Trust, Series 2007-8, Class 2A1, 6.500%, 9/25/2037		232,439
	111,808	Master Adjustable Rate Mortgages Trust, Series 2005-2, Class 5A1, 3.008%, 3/25/2035(b)		96,663
	48,233	MLCC Mortgage Investors, Inc., Series 2004-1, Class 2A1, 2.307%, 12/25/2034(b)		45,191
	208,699	Morgan Stanley Mortgage Loan Trust, Series 2007-15AR, Class 2A1, 5.254%, 11/25/2037(b)		143,311
	394,781	Residential Accredit Loans, Inc., Series 2006-QA9, Class A1, 0.436%, 11/25/2036(b)		222,913
	210,407	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR4, Class 2A2, 2.954%, 4/25/2035(b)		200,890
				1,790,675
		Commercial Mortgage-Backed Securities – 0.2%
	100,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 5.805%, 9/15/2039(b)		99,397
		Construction Machinery – 1.1%
	180,000	RSC Equipment Rental, Inc./RSC Holdings III LLC, 10.250%, 11/15/2019		191,250
	140,000	Terex Corp., 8.000%, 11/15/2017		140,175
	400,000	United Rentals North America, Inc., 7.000%, 2/15/2014		400,000
				731,425

Principal Amount		Description	Value (†)
		Consumer Cyclical Services – 0.0%
$	4,000	KAR Auction Services, Inc., 10.000%, 5/01/2015	$	4,200
		Consumer Products – 0.2%
	120,000	Visant Corp., 10.000%, 10/01/2017, 144A		125,400
		Electric – 5.1%
	20,000	AES Corp. (The), 8.000%, 10/15/2017		21,600
	325,000	AES Corp. (The), 8.000%, 6/01/2020		352,625
	52,975	CE Generation LLC, 7.416%, 12/15/2018		54,346
	195,000	Dynegy Holdings, Inc., 7.125%, 5/15/2018		133,088
	325,000	Dynegy Holdings, Inc., 7.625%, 10/15/2026		195,813
	350,000	Dynegy Holdings, Inc., 7.750%, 6/01/2019		239,750
	525,000	Edison Mission Energy, 7.625%, 5/15/2027		353,062
	460,000	NGC Corp. Capital Trust I, Series B, 8.316%, 6/01/2027(c)		220,800
	355,000	NSG Holdings LLC, 7.750%, 12/15/2025, 144A		323,050
	345,000	RRI Energy, Inc., 7.875%, 6/15/2017		321,713
	160,000	TXU Corp., Series P, 5.550%, 11/15/2014		85,600
	1,415,000	TXU Corp., Series Q, 6.500%, 11/15/2024		541,237
	515,000	TXU Corp., Series R, 6.550%, 11/15/2034		195,700
	365,000	White Pine Hydro Portfolio LLC, 7.260%, 7/20/2015(c)		331,310
				3,369,694
		Food & Beverage – 0.2%
	110,000	Marfrig Overseas Ltd., 9.625%, 11/16/2016, 144A		117,975
		Gaming – 0.7%
	290,000	MGM MIRAGE, 7.500%, 6/01/2016		245,050
	145,000	MGM MIRAGE, 7.625%, 1/15/2017		122,162
	115,000	MGM MIRAGE, 9.000%, 3/15/2020, 144A		121,038
				488,250
		Government Owned – No Guarantee – 0.4%
	300,000	DP World Ltd., 6.850%, 7/02/2037, 144A		280,586
		Healthcare – 6.1%
	15,000	HCA, Inc., 5.750%, 3/15/2014		14,794
	510,000	HCA, Inc., 6.375%, 1/15/2015		508,725

See accompanying notes to financial statements.

9  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles High Income Opportunities Fund – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		Healthcare – continued
$	720,000	HCA, Inc., 6.500%, 2/15/2016	$	720,000
	430,000	HCA, Inc., 7.050%, 12/01/2027		378,400
	30,000	HCA, Inc., 7.500%, 12/15/2023		28,200
	840,000	HCA, Inc., 7.500%, 11/06/2033		770,700
	160,000	HCA, Inc., 7.690%, 6/15/2025		149,600
	40,000	HCA, Inc., 8.360%, 4/15/2024		39,200
	200,000	HCA, Inc., MTN, 7.580%, 9/15/2025		186,000
	20,000	HCA, Inc., MTN, 7.750%, 7/15/2036		18,400
	330,000	Quintiles Transnational Corp., 9.500%, 12/30/2014, 144A(d)		339,075
	1,015,000	Tenet Healthcare Corp., 6.875%, 11/15/2031		822,150
				3,975,244
		Home Construction – 2.0%
	390,000	KB Home, 5.875%, 1/15/2015		368,550
	265,000	KB Home, 6.250%, 6/15/2015		253,075
	290,000	KB Home, 7.250%, 6/15/2018		271,875
	475,000	Pulte Group, Inc., 6.000%, 2/15/2035		356,250
	100,000	Pulte Group, Inc., 6.375%, 5/15/2033		80,000
				1,329,750
		Independent Energy – 4.0%
	260,000	Pioneer Natural Resources Co., 6.875%, 5/01/2018		278,281
	1,320,000	Pioneer Natural Resources Co., 7.200%, 1/15/2028		1,361,036
	335,000	QEP Resources, Inc., 6.875%, 3/01/2021		362,638
	620,000	Swift Energy Co., 7.125%, 6/01/2017		613,800
				2,615,755
		Industrial Other – 0.7%
	305,000	Chart Industries, Inc., 9.125%, 10/15/2015		314,150
	155,000	Ranhill Labuan Ltd., 12.500%, 10/26/2011, 144A		139,500
				453,650
		Lodging – 0.7%
	55,000	Felcor Lodging LP, 10.000%, 10/01/2014		59,744
	50,000	Host Marriott LP, Series O, 6.375%, 3/15/2015		51,187
	315,000	Royal Caribbean Cruises Ltd., 7.250%, 6/15/2016		327,600
				438,531

Principal Amount		Description	Value (†)
		Media Cable – 1.8%
$	640,000	CSC Holdings LLC, 7.625%, 7/15/2018	$	689,600
	300,000	Virgin Media Finance PLC, 8.375%, 10/15/2019		329,250
	175,000	Virgin Media Finance PLC, 9.125%, 8/15/2016		187,250
				1,206,100
		Media Non-Cable – 0.7%
	395,000	Intelsat Luxembourg SA, 11.250%, 2/04/2017		423,144
		Metals & Mining – 1.1%
	400,000	Prime Dig Pte Ltd., 11.750%, 11/03/2014, 144A		415,000
	80,000	United States Steel Corp., 6.050%, 6/01/2017		79,300
	275,000	United States Steel Corp., 6.650%, 6/01/2037		244,062
				738,362
		Non-Captive Consumer – 2.7%
	120,000	American General Finance Corp., Series I, MTN, 5.850%, 6/01/2013		110,700
	500,000	American General Finance Corp., Series J, MTN, 6.500%, 9/15/2017		395,000
	300,000	American General Finance Corp., Series J, MTN, 6.900%, 12/15/2017		250,500
	65,000	SLM Corp., Series A, MTN, 5.000%, 6/15/2018		51,838
	850,000	SLM Corp., Series A, MTN, 5.625%, 8/01/2033		653,625
	306,000	SLM Corp., Series A, MTN, 8.450%, 6/15/2018		309,080
				1,770,743
		Non-Captive Diversified – 6.1%
	1,375,000	Ally Financial, Inc., 6.750%, 12/01/2014		1,432,578
	41,000	Ally Financial, Inc., 6.875%, 8/28/2012		42,794
	63,000	Ally Financial, Inc., 7.000%, 2/01/2012		65,126
	60,000	Ally Financial, Inc., 7.500%, 9/15/2020, 144A		63,900
	331,000	Ally Financial, Inc., 8.000%, 11/01/2031		354,997
	95,000	Ally Financial, Inc., 8.300%, 2/12/2015, 144A		103,550
	45,000	CIT Group, Inc., 7.000%, 5/01/2016		44,325
	675,000	CIT Group, Inc., 7.000%, 5/01/2017		660,656
	30,000	International Lease Finance Corp., 5.875%, 5/01/2013		30,000
	365,000	International Lease Finance Corp., Series Q, MTN, 5.250%, 1/10/2013		359,981

See accompanying notes to financial statements.

|  10

Portfolio of Investments – as of September 30, 2010

Loomis Sayles High Income Opportunities Fund – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		Non-Captive Diversified – continued
$	30,000	International Lease Finance Corp., Series R, MTN, 5.625%, 9/20/2013	$	29,438
	185,000	International Lease Finance Corp., Series R, MTN, 5.650%, 6/01/2014		179,450
	340,000	International Lease Finance Corp., Series R, MTN, 6.625%, 11/15/2013		340,850
	130,000	iStar Financial, Inc., 5.150%, 3/01/2012		110,500
	75,000	iStar Financial, Inc., 5.850%, 3/15/2017		56,813
	190,000	iStar Financial, Inc., Series B, 5.950%, 10/15/2013		150,575
				4,025,533
		Oil Field Services – 1.5%
	680,000	Basic Energy Services, Inc., 7.125%, 4/15/2016		615,400
	130,000	Parker Drilling Co., 9.125%, 4/01/2018, 144A		131,950
	235,000	Pioneer Drilling Co., 9.875%, 3/15/2018, 144A		240,287
				987,637
		Paper – 2.3%
	249,000	Fibria Overseas Finance Ltd., 7.500%, 5/04/2020, 144A		264,251
	495,000	Georgia-Pacific LLC, 7.375%, 12/01/2025		512,325
	190,000	Westvaco Corp., 7.950%, 2/15/2031		205,129
	455,000	Westvaco Corp., 8.200%, 1/15/2030		497,637
				1,479,342
		Refining – 0.9%
	500,000	Petroplus Finance Ltd., 6.750%, 5/01/2014, 144A		457,500
	150,000	Petroplus Finance Ltd., 7.000%, 5/01/2017, 144A		130,500
				588,000
		REITs – Shopping Centers – 0.3%
	190,000	Developers Diversified Realty Corp., 7.875%, 9/01/2020		196,870
		Retailers – 3.9%
	155,000	Dillard’s, Inc., 6.625%, 1/15/2018		149,575
	480,000	Dillard’s, Inc., 7.000%, 12/01/2028		420,000
	175,000	Dillard’s, Inc., 7.130%, 8/01/2018		171,062
	75,000	Dillard’s, Inc., 7.875%, 1/01/2023		71,063
	280,000	Foot Locker, Inc., 8.500%, 1/15/2022		263,900
	20,000	J.C. Penney Corp., Inc., 6.375%, 10/15/2036		19,300

Principal Amount		Description	Value (†)
		Retailers – continued
$	5,000	Macy’s Retail Holdings, Inc., 6.375%, 3/15/2037	$	14,850
	180,000	Macy’s Retail Holdings, Inc., 6.790%, 7/15/2027		173,700
	300,000	Macy’s Retail Holdings, Inc., 6.900%, 4/01/2029		303,750
	985,000	Toys R Us, Inc., 7.375%, 10/15/2018		940,675
				2,527,875
		Supermarkets – 2.4%
	70,000	American Stores Co., 8.000%, 6/01/2026		58,888
	1,075,000	New Albertson’s, Inc., 7.450%, 8/01/2029		870,750
	220,000	New Albertson’s, Inc., 7.750%, 6/15/2026		186,450
	30,000	New Albertson’s, Inc., 8.000%, 5/01/2031		24,450
	605,000	New Albertson’s, Inc., Series C, MTN, 6.625%, 6/01/2028		442,406
				1,582,944
		Technology – 6.1%
	90,000	Activant Solutions, Inc., 9.500%, 5/01/2016		85,950
	125,000	Advanced Micro Devices, Inc., 7.750%, 8/01/2020, 144A		129,062
	190,000	Advanced Micro Devices, Inc., 8.125%, 12/15/2017		200,450
	3,020,000	Alcatel-Lucent USA, Inc., 6.450%, 3/15/2029		2,197,050
	290,000	Alcatel-Lucent USA, Inc., 6.500%, 1/15/2028		209,525
	570,000	First Data Corp., 9.875%, 9/24/2015		465,975
	860,000	Nortel Networks Capital Corp., 7.875%, 6/15/2026(e)		559,000
	125,000	Nortel Networks Ltd., 6.875%, 9/01/2023(e)		34,375
	90,000	Xerox Capital Trust I, 8.000%, 2/01/2027		91,572
				3,972,959
		Textile – 0.5%
	425,000	Jones Apparel Group, Inc., 6.125%, 11/15/2034		346,375
		Transportation Services – 1.1%
	185,000	APL Ltd., 8.000%, 1/15/2024(c)		126,725
	25,426	Atlas Air Pass Through Trust, Series 1998-1, Class B, 7.680%, 7/02/2015		24,155
	347,188	Atlas Air Pass Through Trust, Series 1998-1, Class C, 8.010%, 7/02/2011(f)		282,959
	155,000	Overseas Shipholding Group, 7.500%, 2/15/2024		134,075
	130,000	Teekay Corp., 8.500%, 1/15/2020		141,537
				709,451

See accompanying notes to financial statements.

11  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles High Income Opportunities Fund – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		Wireless – 3.8%
$	170,000	Nextel Communications, Inc., Series D, 7.375%, 8/01/2015	$	170,850
	10,000	Nextel Communications, Inc., Series E, 6.875%, 10/31/2013		10,063
	520,000	Nextel Communications, Inc., Series F, 5.950%, 3/15/2014		517,400
	125,000	NII Capital Corp., 8.875%, 12/15/2019		138,906
	760,000	NII Capital Corp., 10.000%, 8/15/2016		864,500
	311,000	Sprint Capital Corp., 6.875%, 11/15/2028		284,565
	30,000	Sprint Capital Corp., 6.900%, 5/01/2019		30,150
	502,000	Sprint Nextel Corp., 6.000%, 12/01/2016		495,725
				2,512,159
		Wirelines – 10.2%
	765,000	Axtel SAB de CV, 7.625%, 2/01/2017, 144A		699,975
	300,000	Bakrie Telecom Pte Ltd., 11.500%, 5/07/2015, 144A		323,250
	220,000	Cincinnati Bell Telephone Co. LLC, 6.300%, 12/01/2028		167,200
	205,000	Cincinnati Bell, Inc., 8.750%, 3/15/2018		199,875
	257,785	FairPoint Communications, Inc., 13.125%, 4/02/2018(e)		19,012
	15,000	Frontier Communications Corp., 7.000%, 11/01/2025		13,800
	80,000	Frontier Communications Corp., 7.125%, 3/15/2019		82,000
	325,000	Frontier Communications Corp., 7.450%, 7/01/2035		282,750
	805,000	Frontier Communications Corp., 7.875%, 1/15/2027		813,050
	500,000	Global Crossing Ltd., 12.000%, 9/15/2015		565,000
	790,000	Level 3 Financing, Inc., 8.750%, 2/15/2017		703,100
	835,000	Level 3 Financing, Inc., 9.250%, 11/01/2014		784,900
	1,030,000	Qwest Capital Funding, Inc., 6.500%, 11/15/2018		1,030,000
	480,000	Qwest Capital Funding, Inc., 6.875%, 7/15/2028		451,200
	315,000	Qwest Capital Funding, Inc., 7.625%, 8/03/2021		318,150
	190,000	Qwest Corp., 6.875%, 9/15/2033		187,625
	10,000	Qwest Corp., 7.250%, 9/15/2025		10,500
				6,651,387
		Total Non-Convertible Bonds
		(Identified Cost $53,893,276)		53,737,804

Principal Amount		Description	Value (†)
	Convertible Bonds – 9.7%
		Automotive – 1.7%
$	75,000	ArvinMeritor, Inc., (Step to Zero Coupon on 2/15/2019), 4.000%, 2/15/2027(g)	$	68,250
	640,000	Ford Motor Co., 4.250%, 11/15/2016		955,200
	115,000	Navistar International Corp., 3.000%, 10/15/2014		129,231
				1,152,681
		Diversified Manufacturing – 0.7%
	170,000	Owens-Brockway Glass Container, Inc., 3.000%, 6/01/2015, 144A		166,600
	330,000	Trinity Industries, Inc., 3.875%, 6/01/2036		298,650
				465,250
		Electric – 0.7%
	330,000	CMS Energy Corp., 5.500%, 6/15/2029		442,613
		Healthcare – 0.9%
	445,000	Hologic, Inc., (Step to Zero Coupon on 12/15/2013), 2.000%, 12/15/2037(g)		411,625
	165,000	LifePoint Hospitals, Inc., 3.500%, 5/15/2014		164,175
				575,800
		Independent Energy – 0.1%
	90,000	Penn Virginia Corp., 4.500%, 11/15/2012		87,750
		Lodging – 0.5%
	355,000	Host Hotels & Resorts, Inc., 2.625%, 4/15/2027, 144A		346,125
		Media Non-Cable – 0.1%
	151,032	Liberty Media LLC, 3.500%, 1/15/2031		80,424
		Metals & Mining – 0.4%
	230,000	Peabody Energy Corp., 4.750%, 12/15/2066		256,450
		Non-Captive Diversified – 0.0%
	5,000	iStar Financial, Inc., 1.033%, 10/01/2012(b)		3,813
		Pharmaceuticals – 1.0%
	325,000	Human Genome Sciences, Inc., 2.250%, 8/15/2012		595,969
	50,000	Kendle International, Inc., 3.375%, 7/15/2012		46,187
				642,156
		Technology – 2.2%
	119,000	Advanced Micro Devices, Inc., 6.000%, 5/01/2015		117,066
	5,000	Ciena Corp., 0.250%, 5/01/2013		4,463
	450,000	Ciena Corp., 0.875%, 6/15/2017		327,937
	30,000	Ciena Corp., 4.000%, 3/15/2015		32,213

See accompanying notes to financial statements.

|  12

Portfolio of Investments – as of September 30, 2010

Loomis Sayles High Income Opportunities Fund – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		Technology – continued
$	435,000	Intel Corp., 2.950%, 12/15/2035	$	430,106
	440,000	Intel Corp., 3.250%, 8/01/2039		513,700
				1,425,485
		Wirelines – 1.4%
	1,014,000	Level 3 Communications, Inc., 7.000%, 3/15/2015, 144A(c)		903,727
		TOTAL CONVERTIBLE BONDS
		(Identified Cost $5,453,315)		6,382,274
		TOTAL BONDS AND NOTES
		(Identified Cost $59,346,591)		60,120,078
		BANK LOANS – 0.2%
		Media Non-Cable – 0.1%
	181,970	Tribune Company, Term Loan X, 5.000%, 6/04/2009(e)(h)(i)		115,324
		Wirelines – 0.1%
	62,293	Hawaiian Telcom Communications, Inc., New Tranche C Term Loan, 4.750%, 5/30/2014(d)(h)		47,498
		Total Bank Loans
		(Identified Cost $234,649)		162,822
Shares
	Preferred Stocks – 2.5%
	Convertible Preferred Stocks – 1.9%
		Automotive – 0.5%
	6,225	Ford Motor Co. Capital Trust II, 6.500%		298,240
		Capital Markets – 0.3%
	5,724	Newell Financial Trust I, 5.250%		226,456
		Electric Utilities – 0.6%
	7,975	AES Trust III, 6.750%		389,280
		Oil, Gas & Consumable Fuels – 0.5%
	8,050	El Paso Energy Capital Trust I, 4.750%		307,912
		Total Convertible Preferred Stocks
		(Identified Cost $1,044,538)		1,221,888
		Non-Convertible Preferred Stock – 0.6%
		Banking – 0.6%
		Ally Financial, Inc., Series G, 7.000%, 144A
	428	(Identified Cost $103,539)		385,267
		Total Preferred Stocks
		(Identified Cost $1,148,077)		1,607,155

Shares		Description	Value (†)
	Common Stocks – 0.3%
		Media – 0.0%
	321	Dex One Corp.(f)	$	3,942
		Oil, Gas & Consumable Fuels – 0.3%
	9,278	Chesapeake Energy Corp.		210,146
		Total Common Stocks
		(Identified Cost $430,632)		214,088
Principal Amount
	Short-Term Investments – 3.2%
$	365	Repurchase Agreement with State Street Corporation, dated 9/30/2010 at 0.000% to be repurchased at $365 on 10/01/2010 collateralized by $5,000 U.S. Treasury Note, 3.125% due 4/30/2017 valued at $5,476 including accrued interest (Note 2 of Notes to Financial Statements)		365
	2,082,960	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2010 at 0.000% to be repurchased at $2,082,960 on 10/01/2010 collateralized by $2,110,000 Federal Home Loan Bank, 0.785% due 11/25/2011 valued at $2,125,825 including accrued interest (Note 2 of Notes to Financial Statements)		2,082,960
		Total Short-Term Investments
		(Identified Cost $2,083,325)		2,083,325
		Total Investments – 97.9%
		(Identified Cost $63,243,274)(a)		64,187,468
		Other Assets Less Liabilities—2.1%		1,372,288
		Net Assets – 100.0%	$	65,559,756

(†)See Note 2 of Notes to Financial Statements.
(a)Federal Tax Information:
At September 30, 2010, the net unrealized appreciation on investments based on a cost of $63,649,648 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	$	4,608,072
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(4,070,252	)
Net unrealized appreciation	$	537,820

(b) Variable rate security. Rate as of September 30, 2010 is disclosed.

(c) Illiquid security. At September 30, 2010, the value of this security amounted to $1,582,562 or 2.4% of net assets.

(d) All or a portion of interest payment is paid-in-kind.

(e) The issuer is in default with respect to interest and/or principal payments. Income is not being accrued.

(f) Non-income producing security.

(g) Coupon rate is a fixed rate for an initial period then resets at a specified date and rate.

(h) Variable rate security. Rate shown represents the weighted average rate at September 30, 2010.

(i) Issuer has filed for bankruptcy.

See accompanying notes to financial statements.

13  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles High Income Opportunities Fund – continued

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, 2010, the total value of these securities amounted to $7,787,731 or 11.9% of net assets.

ABS Asset-Backed Securities

MTN Medium Term Note

REITs Real Estate Investment Trusts

Industry Summary at September 30, 2010 (Unaudited)

Wirelines	11.7	%
Technology	8.3
Healthcare	7.0
Non-Captive Diversified	6.1
Electric	5.8
Automotive	5.6
Independent Energy	4.1
Retailers	3.9
Wireless	3.8
Airlines	3.1
Collateralized Mortgage Obligations	2.7
Non-Captive Consumer	2.7
Supermarkets	2.4
Paper	2.3
Home Construction	2.0
Other Investments, less than 2% each	23.2
Short-Term Investments	3.2
Total Investments	97.9
Other assets less liabilities	2.1
Net Assets	100.0	%

See accompanying notes to financial statements.

|  14

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Securitized Asset Fund

Principal Amount		Description	Value (†)
	Bonds and Notes – 100.2% of Net Assets
		ABS Car Loan – 6.8%
$	2,795,236	ARI Fleet Lease Trust, Series 2010-A, Class A, 1.707%, 8/15/2018, 144A(b)	$	2,795,236
	2,800,000	Avis Budget Rental Car Funding AESOP LLC, Series 2009-1A, Class A, 9.310%, 10/20/2013, 144A		3,101,465
	4,235,000	Avis Budget Rental Car Funding AESOP LLC, Series 2010-3A, Class A, 4.640%, 5/20/2016, 144A		4,508,796
	481,524	Capital One Auto Finance Trust, Series 2006-C, Class A4, 0.287%, 5/15/2013(b)		478,560
	800,000	Capital One Auto Finance Trust, Series 2007-C, Class A4, 5.230%, 7/15/2014		832,542
	1,500,000	CarMax Auto Owner Trust, Series 2009-2, Class A3, 1.740%, 4/15/2014		1,519,453
	841,387	Centre Point Funding LLC, Series 2010-1A, Class 1, 5.430%, 7/20/2016, 144A		889,650
	1,475,000	Chrysler Financial Lease Trust, Series 2010-A, Class B, 3.460%, 9/16/2013, 144A		1,477,848
	2,195,000	Chrysler Financial Lease Trust, Series 2010-A, Class C, 4.490%, 9/16/2013, 144A		2,197,246
	1,135,000	Daimler Chrysler Auto Trust, Series 2008-B, Class A4A, 5.320%, 11/10/2014		1,191,690
	2,740,000	Hertz Vehicle Financing LLC, Series 2009-2A, Class A1, 4.260%, 3/25/2014, 144A		2,874,608
	3,190,000	Hertz Vehicle Financing LLC, Series 2009-2A, Class A2, 5.290%, 3/25/2016, 144A		3,520,927
	2,300,000	Hertz Vehicle Financing LLC, Series 2009-2A, Class B2, 5.930%, 3/25/2016, 144A		2,384,495
	1,305,000	Merrill Auto Trust Securitization Asset, Series 2008-1, Class B, 6.750%, 4/15/2015		1,404,526
	5,755,000	Navistar Financial Dealer Note Master Trust, Series 2010-1, Class A, 1.906%, 1/26/2015, 144A(b)		5,770,223
	576,715	Nissan Auto Receivables Owner Trust, Series 2008-B, Class A3, 4.460%, 4/16/2012		583,875
	8,490,000	Nissan Master Owner Trust Receivables, Series 2010-AA, Class A, 1.407%, 1/15/2015, 144A(b)		8,617,296
				44,148,436
		ABS Credit Card – 6.9%
	1,895,000	Capital One Multi-Asset Execution Trust, Series 2004-A4, Class A4, 0.477%, 3/15/2017(b)		1,875,776
	2,670,000	Capital One Multi-Asset Execution Trust, Series 2007-A5, Class A5, 0.297%, 7/15/2020(b)		2,575,523

Principal Amount		Description	Value (†)
		ABS Credit Card – continued
$	2,300,000	Chase Issuance Trust, Series 2007-B1, Class B1, 0.507%, 4/15/2019(b)	$	2,206,816
	1,750,000	Chase Issuance Trust, Series 2007-C1, Class C1, 0.717%, 4/15/2019(b)		1,627,701
	1,150,000	Citibank Credit Card Issuance Trust, Series 2005-C2, Class C2, 0.726%, 3/24/2017(b)		1,064,534
	4,215,000	Citibank Credit Card Issuance Trust, Series 2007-A8, Class A8, 5.650%, 9/20/2019		5,053,150
	3,305,000	Discover Card Master Trust, Series 2007-A1, Class A1, 5.650%, 3/16/2020		3,930,384
	1,335,000	GE Capital Credit Card Master Note Trust, Series 2007-2, Class B, 0.437%, 3/15/2015(b)		1,294,878
	2,815,000	GE Capital Credit Card Master Note Trust, Series 2009-4, Class B, 5.390%, 11/15/2017, 144A		3,091,902
	4,975,000	GE Credit Capital Card Master Note Trust, Series 2010-2, Class A, 4.470%, 3/15/2020		5,471,261
	2,070,000	MBNA Credit Card Master Note Trust, Series 2004-A3, Class A3, 0.517%, 8/16/2021(b)		2,007,955
	3,130,000	MBNA Credit Card Master Note Trust, Series 2004-C2, Class C2, 1.157%, 11/15/2016(b)		3,028,053
	1,520,000	World Financial Network Credit Card Master Trust, Series 2006-A, Class A, 0.387%, 2/15/2017, 144A(b)		1,471,319
	9,695,000	World Financial Network Credit Card Master Trust, Series 2010-A, Class A, 3.960%, 4/15/2019		10,060,538
				44,759,790
		ABS Home Equity – 0.9%
	2,228,800	Bear Stearns Asset Backed Securities Trust, Series 2006-HE3, Class A3, 0.536%, 4/25/2036(b)		1,464,821
	701,980	Countrywide Asset-Backed Certificates, Series 2004-S1, Class A3, 4.615%, 2/25/2035		654,963
	713,119	Countrywide Asset-Backed Certificates, Series 2006-S3, Class A1, 0.366%, 6/25/2021(b)		601,786
	1,689,826	Countrywide Asset-Backed Certificates, Series 2006-S7, Class A3, 5.712%, 11/25/2035		345,569
	1,257,506	GSAMP Trust, Series 2005-WMC3, Class A2B, 0.496%, 12/25/2035(b)		1,009,784
	2,312,641	Soundview Home Equity Loan Trust, Series 2006-OPT5, Class 2A3, 0.406%, 7/25/2036(b)		1,781,627
				5,858,550

See accompanying notes to financial statements.

15  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Securitized Asset Fund – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		ABS Other – 2.3%
$	1,820,161	CIT Equipment Collateral, Series 2008-VT1, Class A3, 6.590%, 12/22/2014	$	1,876,929
	1,387,136	Marriott Vacation Club Owner Trust, Series 2009-2A, Class A, 4.809%, 7/20/2031, 144A		1,439,569
	4,588,503	Premium Yield Facility, Series 2010-A, 6.080%, 2/20/2026, 144A(c)		4,588,503
	1,786,788	Sierra Receivables Funding Co., Series 2007-1A, Class A2, 0.407%, 3/20/2019, 144A(b)		1,668,529
	135,798	Sierra Receivables Funding Co., Series 2009-1A, Class A1, 9.790%, 12/22/2025, 144A		138,351
	732,123	Sierra Receivables Funding Co., Series 2009-3A, Class A1, 7.620%, 7/20/2026, 144A		742,142
	1,662,761	Sierra Receivables Funding Co., Series 2010-1A, Class A1, 4.480%, 7/20/2026, 144A		1,698,899
	2,917,964	Sierra Receivables Funding Co., Series 2010-2A, Class A, 3.840%, 11/20/2025, 144A		2,948,443
				15,101,365
		Collateralized Mortgage Obligations – 4.4%
	1,094,694	Countrywide Alternative Loan Trust, Series 2006-15CB, Class A1, 6.500%, 6/25/2036		682,380
	797,606	Countrywide Alternative Loan Trust, Series 2006-J5, Class 4A1, 5.967%, 7/25/2021(b)		616,481
	524,475	Countrywide Home Loans, Series 2004-HYB5, Class 6A2, 3.082%, 4/20/2035(b)		172,323
	2,797,000	Federal Home Loan Mortgage Corp., Series 2912, Class EH, 5.500%, 1/15/2035(d)		3,156,078
	10,844,052	Federal National Mortgage Association, Series 2003-26, Class OI, 5.500%, 11/25/2032(d)(e)		793,252
	10,000,000	Federal National Mortgage Association, Series 2004-2, Class QK, 4.000%, 9/25/2017(d)		10,443,655
	4,509,158	First Horizon Alternative Mortgage Securities, Series 2006-AA3, Class A1, 6.175%, 6/25/2036(b)		2,324,606
	823,304	Morgan Stanley Mortgage Loan Trust, Series 2005-3AR, Class 5A, 5.595%, 7/25/2035(b)		751,442
	465,633	Residential Accredit Loans, Inc., Series 2006-QS13, Class 2A1, 5.750%, 9/25/2021		377,136
	1,956,039	Residential Accredit Loans, Inc., Series 2006-QS18, Class 3A3, 5.750%, 12/25/2021		1,736,972
	104,613	Residential Accredit Loans, Inc., Series 2006-QS6, Class 2A1, 6.000%, 6/25/2021		92,629

Principal Amount		Description	Value (†)
		Collateralized Mortgage Obligations – continued
$	9,231,978	Washington Mutual Mortgage Pass Through Certificates, Series 2007-HY2, Class 2A2, 6.299%, 11/25/2036(b)	$	7,408,662
	566,900	Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR16, Class 3A2, 2.862%, 10/25/2035(b)		511,161
				29,066,777
		Commercial Mortgage-Backed Securities – 29.5%
	50,189	Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A2, 5.165%, 9/10/2047		50,327
	189,000	Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A4, 5.190%, 9/10/2047(b)		208,077
	350,000	Banc of America Commercial Mortgage, Inc., Series 2006-2, Class A4, 5.740%, 5/10/2045(b)		383,902
	460,000	Banc of America Commercial Mortgage, Inc., Series 2006-4, Class A2, 5.522%, 7/10/2046		469,575
	6,017,000	Banc of America Commercial Mortgage, Inc., Series 2007-5, Class A4, 5.492%, 2/10/2051		6,299,543
	412,475	Bank of America-First Union NB Commercial Mortgage, Series 2001-3, Class A2, 5.464%, 4/11/2037		422,123
	142,222	Bear Stearns Commercial Mortgage Securities, Series 2001-TOP2, Class A2, 6.480%, 2/15/2035		144,195
	105,688	Bear Stearns Commercial Mortgage Securities, Series 2005-T18, Class A2, 4.556%, 2/13/2042		107,597
	2,725,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4, 5.331%, 2/11/2044		2,803,934
	1,200,000	Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A4, 5.717%, 6/11/2040(b)		1,302,997
	7,500,000	Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A4, 5.431%, 10/15/2049		8,108,909
	5,000,000	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5, 5.617%, 10/15/2048		5,441,921
	7,500,000	Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A4, 5.322%, 12/11/2049		7,773,031
	250,000	Commercial Mortgage Pass Through Certificates, Series 2006-C7, Class A4, 5.767%, 6/10/2046(b)		277,006
	4,860,000	Credit Suisse Mortgage Capital Certificates, Series 2006-C3, Class A3, 5.826%, 6/15/2038(b)		5,322,906
	5,250,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C2, Class A3, 5.542%, 1/15/2049		5,255,520

See accompanying notes to financial statements.

|  16

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Securitized Asset Fund – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
	Commercial Mortgage-Backed Securities – continued
$	5,688,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4, 5.721%, 6/15/2039(b)	$	5,669,157
	5,000,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A4, 5.805%, 9/15/2039(b)		4,969,871
	7,000,000	Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/2040		7,015,804
	1,508,000	Credit Suisse Mortgage Capital Certificates, Series 2008-C1, Class A3, 6.214%, 2/15/2041(b)		1,590,338
	7,510,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4, 5.736%, 12/10/2049		7,859,419
	8,745,000	Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4, 5.444%, 3/10/2039		9,218,154
	125,000	GS Mortgage Securities Corp. II, Series 2004-GG2, Class A6, 5.396%, 8/10/2038		136,348
	744,377	GS Mortgage Securities Corp. II, Series 2005-GG4, Class A2, 4.475%, 7/10/2039		743,994
	4,515,000	GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A, 4.751%, 7/10/2039		4,854,848
	447,267	GS Mortgage Securities Corp. II, Series 2006-GG6, Class A2, 5.506%, 4/10/2038		452,517
	6,730,000	GS Mortgage Securities Corp. II, Series 2006-GG6, Class A4, 5.553%, 4/10/2038		7,246,435
	7,500,000	GS Mortgage Securities Corp. II, Series 2006-GG8, Class A4, 5.560%, 11/10/2039		7,988,322
	12,500,000	GS Mortgage Securities Trust, Series 2007-GG10, Class A4, 5.808%, 8/10/2045(b)		13,063,052
	80,055	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC, Class A3, 6.260%, 3/15/2033		80,411
	7,500,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-CB15, Class A4, 5.814%, 6/12/2043		8,165,344
	3,200,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-CB18, Class A4, 5.440%, 6/12/2047		3,354,204
	7,585,000	JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3, 5.420%, 1/15/2049		7,891,560

Principal Amount		Description	Value (†)
	Commercial Mortgage-Backed Securities – continued
$	275,000	LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class A3, 4.647%, 7/15/2030	$	281,728
	2,440,000	LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class A4, 5.661%, 3/15/2039		2,641,364
	7,500,000	LB-UBS Commercial Mortgage Trust, Series 2006-C7, Class A3, 5.347%, 11/15/2038		8,024,992
	1,000,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-1, Class A4, 5.416%, 2/12/2039(b)		1,107,531
	250,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4, 5.908%, 6/12/2046(b)		277,982
	1,000,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-3, Class A4, 5.414%, 7/12/2046		1,063,005
	7,525,000	Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4, 5.485%, 3/12/2051		7,549,957
	5,280,000	Morgan Stanley Capital I, Series 2005-HQ6, Class A4A, 4.989%, 8/13/2042		5,729,871
	3,315,000	Morgan Stanley Capital I, Series 2005-HQ7, Class A4, 5.206%, 11/14/2042(b)		3,658,064
	5,000,000	Morgan Stanley Capital I, Series 2006-HQ10, Class A4, 5.328%, 11/12/2041		5,356,191
	555,000	Morgan Stanley Capital I, Series 2006-T23, Class A2, 5.739%, 8/12/2041(b)		600,408
	5,275,000	Morgan Stanley Capital I, Series 2007-IQ14, Class A4, 5.692%, 4/15/2049		5,475,706
	7,381,000	Morgan Stanley Capital I, Series 2007-IQ15, Class A4, 5.880%, 6/11/2049(b)		7,894,558
	23,902	Wachovia Bank Commercial Mortgage Trust, Series 2005-C16, Class A2, 4.380%, 10/15/2041		24,321
	7,600,000	Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A4, 5.418%, 1/15/2045		8,204,342
				192,561,361
		Hybrid ARMs – 1.9%
	256,428	FHLMC, 2.771%, 1/01/2035(b)(d)		267,544
	3,722,881	FHLMC, 5.905%, 2/01/2037(b)(d)		3,959,062
	3,323,687	FHLMC, 5.971%, 11/01/2036(b)(d)		3,548,775
	1,864,729	FNMA, 5.706%, 9/01/2036(b)(d)		1,970,687
	2,245,211	FNMA, 6.000%, 2/01/2037(b)(d)		2,397,399
				12,143,467

See accompanying notes to financial statements.

17  |

Portfolio of Investments – as of September 30, 2010

Loomis Sayles Securitized Asset Fund – continued

Principal Amount		Description	Value (†)
	Bonds and Notes – continued
		Mortgage Related – 47.5%
$	25,072,302	FHLMC, 5.000%, with various maturities from 2022 to 2040(d)(f)	$	26,506,418
	35,528,975	FHLMC, 5.500%, with various maturities from 2035 to 2040(d)(f)		37,713,318
	16,216,838	FHLMC, 6.000%, with various maturities from 2036 to 2037(d)(f)		17,481,243
	87,577	FHLMC, 6.500%, 1/01/2038(d)		95,503
	12,450,000	FHLMC (TBA), 4.500%, 6/01/2020(g)		13,091,947
	33,000,000	FHLMC (TBA), 5.000%, 8/01/2036(g)		34,660,296
	20,000,000	FHLMC (TBA), 6.000%, 11/01/2035(g)		21,440,620
	529,880	FNMA, 4.500%, 10/01/2035(d)		556,546
	12,404,224	FNMA, 5.500%, with various maturities from 2034 to 2036(d)(f)		13,349,356
	8,188,243	FNMA, 6.000%, with various maturities from 2034 to 2037(d)(f)		8,882,118
	9,827,110	FNMA, 6.500%, with various maturities from 2036 to 2038(f)		10,738,751
	23,450	FNMA, 7.000%, 12/01/2037(d)		26,146
	1,295,000	FNMA (TBA), 6.000%, 10/01/2035(g)		1,390,910
	81,722,960	GNMA, 4.500%, with various maturities from 2039 to 2040(d)(f)		86,138,465
	1,400,066	GNMA, 5.500%, with various maturities from 2033 to 2036(d)(f)		1,510,174
	101,506	GNMA, 6.000%, 6/15/2036(d)		110,563
	364,627	GNMA, 6.500%, 9/15/2036(d)		402,324
	34,000,000	GNMA (TBA), 5.500%, 5/01/2036(g)		36,550,000
				310,644,698
		Total Bonds and Notes
		(Identified Cost $627,290,995)		654,284,444
	Short-Term Investments – 16.0%
	104,688,561	Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/2010 at 0.000% to be repurchased at $104,688,561 on 10/01/2010 collateralized by $105,999,000 Federal Home Loan Bank, 0.785% due 11/25/2011 valued at $106,784,925 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $104,688,561)		104,688,561
		Total Investments – 116.2%
		(Identified Cost $731,979,556)(a)		758,973,005
		Other Assets Less Liabilities—(16.2)%		(105,674,069	)
		Net Assets – 100.0%	$	653,298,936

(†)See Note 2 of Notes to Financial Statements.
(a)Federal Tax Information:
At September 30, 2010, the net unrealized appreciation on investments based on a cost of $731,988,762 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	$	34,960,496
Aggregate gross unrealized depreciation for all investments in which there is an excess of tax cost over value		(7,976,253	)
Net unrealized appreciation	$	26,984,243

(b) Variable rate security. Rate as of September 30, 2010 is disclosed.

(c) Illiquid security. At September 30, 2010, the value of this security amounted to $4,588,503 or 0.7% of net assets.

(d) All or a portion of this security has been segregated to cover requirements on TBA obligations.

(e) Security represents right to receive monthly interest payments on an underlying pool of mortgages. Principal shown is the outstanding par amount of the pool held as of the end of the period.

(f) The Fund’s investment in mortgage related securities of the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association and Government National Mortgage Association are interests in separate pools of mortgages. All separate investments in securities of each issuer which have the same coupon rate have been aggregated for the purpose of presentation in the Portfolio of Investments.

(g) Delayed delivery. See Note 2 of Notes to Financial Statements.

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, 2010, the total value of these securities amounted to $55,925,447 or 8.6% of net assets.

ABS Asset-Backed Securities

ARMs Adjustable Rate Mortgages

FHLMC Federal Home Loan Mortgage Corp.

FNMA Federal National Mortgage Association

GNMA Government National Mortgage Association

TBA To Be Announced

Industry Summary at September 30, 2010 (Unaudited)

Mortgage Related	47.5	%
Commercial Mortgage-Backed Securities	29.5
ABS Credit Card	6.9
ABS Car Loan	6.8
Collateralized Mortgage Obligations	4.4
ABS Other	2.3
Other Investments, less than 2% each	2.8
Short-Term Investments	16.0
Total Investments	116.2
Other assets less liabilities	(16.2	)
Net Assets	100.0	%

See accompanying notes to financial statements.

|  18

Statements of Assets and Liabilities

September 30, 2010

	High Income Opportunities Fund			Securitized Asset Fund
ASSETS
Investments at cost	$	61,159,949		$	627,290,995
Repurchase agreement(s) at cost		2,083,325			104,688,561
Net unrealized appreciation		944,194			26,993,449
Investments at value		64,187,468			758,973,005
Cash		313,510			—
Receivable for Fund shares sold		48,796			1,530,343
Receivable for securities sold		128,774			—
Dividends and interest receivable		1,094,327			2,491,702
TOTAL ASSETS		65,772,875			762,995,050
LIABILITIES
Payable for securities purchased		211,651			1,917,804
Payable for delayed delivery securities purchased (Note 2)		—			107,560,058
Payable for Fund shares redeemed		1,468			218,252
TOTAL LIABILITIES		213,119			109,696,114
NET ASSETS	$	65,559,756		$	653,298,936
NET ASSETS CONSIST OF:
Paid-in capital	$	70,493,964		$	625,199,412
Undistributed net investment income		501,262			2,721,800
Accumulated net realized loss on investments and futures contracts		(6,379,664	)		(1,615,725	)
Net unrealized appreciation on investments		944,194			26,993,449
NET ASSETS	$	65,559,756		$	653,298,936
NET ASSET VALUE AND OFFERING PRICE:
Institutional Class:
Net assets	$	65,559,756		$	653,298,936
Shares of beneficial interest		6,611,044			59,458,307
Net asset value, offering and redemption price per share	$	9.92		$	10.99

See accompanying notes to financial statements.

19  |

Statements of Operations

For the Year Ended September 30, 2010

	High Income Opportunities Fund		Securitized Asset Fund
INVESTMENT INCOME
Interest	$	5,458,637	$	18,710,575
Dividends		130,477		—
Net investment income		5,589,114		18,710,575
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS
Net Realized Gain (Loss) on:
Investments		1,485,070		3,968,288
Futures contracts		—		(612,603	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		5,014,237		39,680,350
Futures contracts		—		300,688
Net realized and unrealized gain on investments and futures contracts		6,499,307		43,336,723
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	12,088,421	$	62,047,298

See accompanying notes to financial statements.

|  20

Statements of Changes in Net Assets

	High Income Opportunities Fund						Securitized Asset Fund
	Year Ended September 30, 2010			Year Ended September 30, 2009			Year Ended September 30, 2010			Year Ended September 30, 2009
FROM OPERATIONS:
Net investment income	$	5,589,114		$	6,530,967		$	18,710,575		$	15,843,704
Net realized gain (loss) on investments and futures contracts		1,485,070			(7,702,420	)		3,355,685			8,228,422
Net change in unrealized appreciation (depreciation) on investments and futures contracts		5,014,237			15,284,070			39,981,038			5,344,115
Net increase in net assets resulting from operations		12,088,421			14,112,617			62,047,298			29,416,241
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional Class		(5,690,124	)		(6,616,136	)		(20,474,786	)		(18,247,123	)
Net Realized Capital Gains
Institutional Class		—			(85,819	)		(4,702,129	)		(1,038,001	)
Total distributions		(5,690,124	)		(6,701,955	)		(25,176,915	)		(19,285,124	)
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 9)		(12,548,060	)		(651,439	)		325,960,515			(101,717,022	)
Net increase (decrease) in net assets		(6,149,763	)		6,759,223			362,830,898			(91,585,905	)
Net Assets
Beginning of the year		71,709,519			64,950,296			290,468,038			382,053,943
End of the year	$	65,559,756		$	71,709,519		$	653,298,936		$	290,468,038
UNDISTRIBUTED NET INVESTMENT INCOME	$	501,262		$	572,318		$	2,721,800		$	1,668,897

See accompanying notes to financial statements.

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|  22

Financial Highlights

For a share outstanding throughout each period.

			Income (Loss) from Investment Operations:								Less Distributions:
	Net asset value, beginning of the period		Net investment income(a)		Net realized and unrealized gain (loss)			Total from investment operations			Dividends from net investment income			Distributions from net realized capital gains(b)			Total distributions
High Income Opportunities Fund
Institutional Class
9/30/2010	$	9.07	$	0.78	$	0.86		$	1.64		$	(0.79	)	$	—		$	(0.79	)
9/30/2009		8.26		0.79		0.84			1.63			(0.81	)		(0.01	)		(0.82	)
9/30/2008		10.42		0.82		(2.09	)		(1.27	)		(0.82	)		(0.07	)		(0.89	)
9/30/2007		10.39		0.77		0.01	(f)		0.78			(0.75	)		(0.00	)		(0.75	)
9/30/2006		10.50		0.76		(0.10	)		0.66			(0.73	)		(0.04	)		(0.77	)
Securitized Asset Fund
Institutional Class
9/30/2010	$	10.16	$	0.41	$	1.08		$	1.49		$	(0.49	)	$	(0.17	)	$	(0.66	)
9/30/2009		9.60		0.50		0.66			1.16			(0.57	)		(0.03	)		(0.60	)
9/30/2008		10.07		0.55		(0.45	)		0.10			(0.57	)		—			(0.57	)
9/30/2007		10.13		0.55		(0.10	)		0.45			(0.51	)		(0.00	)		(0.51	)
9/30/2006(g)		10.00		0.30		0.02			0.32			(0.19	)		—			(0.19	)

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

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

(c) Periods less than one year, if applicable, are not annualized.

(d) Loomis Sayles has agreed to pay, without reimbursement from the Fund, all expenses associated with the operations of the Fund.

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

(f) The amount shown for a share outstanding does not correspond with the aggregate realized and unrealized gain (loss) on investments for the period due to the timing of sales and redemptions of fund shares in relation to fluctuating market values of investments of the Fund.

(g) For the period March 2, 2006 (commencement of operations) through September 30, 2006.

See accompanying notes to financial statements.

23  |

							Ratios to Average Net Assets:
Net asset value, end of the period		Total return (%)(c)			Net assets, end of the period (000’s)		Net expenses (%)(d)		Gross expenses (%)(d)		Net investment income (%)(e)		Portfolio turnover rate (%)
$	9.92		18.88		$	65,560		—		—		8.21		26
	9.07		23.06			71,710		—		—		10.86		34
	8.26		(13.24	)		64,950		—		—		8.47		24
	10.42		7.68			84,073		—		—		7.35		29
	10.39		6.64			42,847		—		—		7.36		26
$	10.99		15.24		$	653,299		—		—		3.89		251
	10.16		12.97			290,468		—		—		5.42		390
	9.60		0.92			382,054		—		—		5.55		430
	10.07		4.58			347,153		—		—		5.43		73
	10.13		3.28			70,993		—		—		3.02		55

See accompanying notes to financial statements.

|  24

Notes to Financial Statements

September 30, 2010

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. The financial statements for certain funds of the Trust are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:

Loomis Sayles 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. The Funds’ financial statements are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions subsequent to year-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.

a.  Valuation. Debt securities (other than short-term obligations purchased with an original or remaining maturity of sixty days or less) are generally valued on the basis of evaluated bids furnished to the Funds by a pricing service recommended by the investment adviser and approved by the Board of Trustees, which service determines valuations for normal, institutional-size trading units of such securities using market information, transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders. Equity securities, including shares of closed-end investment companies and exchange-traded funds, for which market quotations are readily available are valued at market value, as reported by pricing services recommended by the investment adviser and approved by the Board of Trustees. Such pricing services generally use the security’s last sale price on the exchange or market where the security is primarily traded or, if there is no reported sale during the day, the closing bid price. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking a NOCP, at the most recent bid quotation on the applicable NASDAQ Market. Broker-dealer bid quotations may also be used to value debt and equity securities where a pricing service does not price a security or where a pricing service does not provide a reliable price for the security. In instances where broker-dealer bid quotations are not available, certain securities held by the Funds may be valued on the basis of a price provided by a principal market maker. Forward foreign currency contracts are valued utilizing interpolated prices determined from information provided by an independent pricing service. Futures contracts are valued 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.  Investment Transactions and Related Investment Income. Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculation. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium. 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.

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.

25  |

Notes to Financial Statements – continued

September 30, 2010

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

Net realized foreign exchange gains or losses arise from sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the 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.

d.  Forward Foreign Currency Contracts. The High Income Opportunities 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 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 Statements of Assets and Liabilities. The U.S. dollar value of the currencies the Fund has committed to buy or sell represents the aggregate exposure to each currency the Fund has acquired or hedged through currency contracts outstanding at period end. Gains or losses are recorded for financial statement purposes as unrealized until settlement date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Certain contracts may require the movement of cash or securities to or from the counterparty as collateral for the Funds’ or counterparty’s net obligations under the contracts.

At September 30, 2010, there were no open forward foreign currency contracts.

e.  Futures Contracts. The Funds may enter into futures contracts. Futures contracts are agreements between two parties to buy and sell a particular commodity, instrument or index (e.g., an interest-bearing security) for a specified price on a specified future date.

When a Fund enters into a futures contract, it is required to deposit with (or for the benefit of) its broker as “initial margin” an amount of cash or short-term high-quality securities (such as U.S. Treasury bills or high-quality tax-exempt bonds acceptable to the broker). As the value of the contract changes, the value of the futures contract position increases or declines. Subsequent payments, known as “variation margin”, are made or received by a Fund, depending on the price fluctuations in the fair value of the contract and the value of the collateral held. The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statements of Assets and Liabilities as an asset (liability) and in the Statements of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses). Realized gain or loss on a futures position is equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, minus brokerage commissions. When a Fund enters into a futures contract, certain risks may arise such as illiquidity in the futures market, which may limit a Fund’s ability to close out a futures contract prior to settlement date, and unanticipated movements in the value of securities or interest rates.

Futures contracts are exchange-traded. Exchange-traded futures have standardized contracts and are settled through a clearing house with fulfillment guaranteed by the credit of the exchange. Therefore, counterparty credit risks to the Funds are limited.

At September 30, 2010, there were no open futures contracts.

f.  Federal and Foreign Income Taxes. The Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of September 30, 2010 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next twelve months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

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

|  26

Notes to Financial Statements – continued

September 30, 2010

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, defaulted bonds, distribution redesignations 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, contingent payment debt instruments and wash sales. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the years ended September 30, 2010 and 2009 were as follows:

	2010 Distributions Paid From:						2009 Distributions Paid From:
Fund	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
High Income Opportunities Fund	$	5,690,124	$	—	$	5,690,124	$	6,616,163	$	85,792	$	6,701,955
Securitized Asset Fund		25,176,915		—		25,176,915		19,285,124		—		19,285,124

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

As of September 30, 2010, the components of distributable earnings on a tax basis were as follows:

	High Income Opportunities Fund			Securitized Asset Fund
Undistributed ordinary income	$	700,428		$	2,721,800
Undistributed long-term capital gains		—			—
Total undistributed earnings		700,428			2,721,800
Capital loss carryforward:
Expires September 30, 2017		(811,815	)		—
Expires September 30, 2018		(5,225,445	)		(1,367,506	)
Total capital loss carryforward		(6,037,260	)		(1,367,506	)
Deferred net capital losses (post-October 2009)		—			(239,014	)
Unrealized appreciation (depreciation)		537,820			26,984,243
Total accumulated earnings (losses)	$	(4,799,012	)	$	28,099,523

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

i.  Delayed Delivery Commitments. The Funds may purchase securities, including those designated as TBAs in the Portfolio of Investments, for which delivery or payment will occur at a later date, beyond the normal settlement period. The price of the security and the date when the security will be delivered and paid for are fixed at the time the transaction is negotiated. The security and the obligation to pay for it are recorded by the Funds at the time the commitment is entered into. The actual security that will be delivered to fulfill a TBA trade is not designated at the time of the trade. The security is “to be announced” 48 hours prior to the established trade settlement date. The value of the security may vary with market fluctuations during the time before the Funds take delivery of the security. No interest accrues to the Funds until the transaction settles. When the Funds enter into such a transaction, collateral consisting of liquid securities or cash and cash equivalents is required to be segregated with the custodian and/or broker in an amount at least equal to the amount of the Funds’ commitment.

Purchases of delayed delivery securities may have a similar effect on the Funds’ net asset value as if the Funds had created a degree of leverage in its portfolio. Risks may arise upon entering into such transactions from the potential inability of counterparties to meet their obligations under the transactions. Additionally, losses may arise due to changes in the value of the underlying securities.

j.  Securities Lending. The Funds have entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Funds, to lend securities to certain designated borrowers. The loans are collateralized with cash or securities in an amount equal to at least 105% or 102% of the market value (including accrued interest) of the loaned international or domestic securities, respectively, when the loan is initiated. Thereafter, the value of the collateral must remain at least 102% of the market value (including accrued interest) of loaned

27  |

Notes to Financial Statements – continued

September 30, 2010

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

For the year ended September 30, 2010, none of the Funds had loaned securities under this agreement.

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

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

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

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

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

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

The following is a summary of the inputs used to value the Funds’ investments as of September 30, 2010, at value:

High Income Opportunities Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes(a)	$	—	$	60,120,078	$	—	$	60,120,078
Bank Loans(a)		—		162,822		—		162,822
Preferred Stocks
Convertible Preferred Stocks
Automotive		298,240		—		—		298,240
Capital Markets		—		226,456		—		226,456
Electric Utilities		389,280		—		—		389,280
Oil, Gas & Consumable Fuels		307,912		—		—		307,912
Total Convertible Preferred Stocks		995,432		226,456		—		1,221,888
Non-Convertible Preferred Stocks(a)		—		385,267		—		385,267
Total Preferred Stocks		995,432		611,723		—		1,607,155
Common Stocks(a)		214,088		—		—		214,088
Short-Term Investments		—		2,083,325		—		2,083,325
Total	$	1,209,520	$	62,977,948	$	—	$	64,187,468

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

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

|  28

Notes to Financial Statements – continued

September 30, 2010

Securitized Asset Fund

Asset Valuation Inputs

Description	Level 1		Level 2		Level 3		Total
Bonds and Notes
ABS Car Loan	$	—	$	44,148,436	$	—	$	44,148,436
ABS Credit Card		—		44,759,790		—		44,759,790
ABS Home Equity		—		5,512,981		345,569		5,858,550
ABS Other		—		10,512,862		4,588,503		15,101,365
Collateralized Mortgage Obligations		—		29,066,777		—		29,066,777
Commercial Mortgage-Backed Securities		—		192,561,361		—		192,561,361
Hybrid ARMs		—		12,143,467		—		12,143,467
Mortgage Related		—		310,644,698		—		310,644,698
Total Bonds and Notes		—		649,350,372		4,934,072		654,284,444
Short-Term Investments		—		104,688,561		—		104,688,561
Total	$	—	$	754,038,933	$	4,934,072	$	758,973,005

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value as of September 30, 2010:

High Income Opportunities Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)		Change in Unrealized Appreciation (Depreciation)			Net Purchases (Sales)			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2010
Bonds and Notes
Non-Convertible Bonds
Airlines	$	534,446	$	—	$	—	$	—		$	—		$	—	$	(534,446	)	$	—
Collateralized Mortgage Obligations		57,083		—		10,302		—			(67,385	)		—		—			—
Electric		257,001		—		8,908		(7,121	)		(258,788	)		—		—			—
Technology		112,500		404		45,763		(27,119	)		(131,548	)		—		—			—
Convertible Bonds
Technology		99,190		1,214		2,917		5,679			(109,000	)		—		—			—
Wirelines		1,074,840		—		—		—			—			—		(1,074,840	)		—
Total	$	2,135,060	$	1,618	$	67,890	$	(28,561	)	$	(566,721	)	$	—	$	(1,609,286	)	$	—

Debt securities valued at $1,609,286 were transferred from Level 3 to Level 2 during the year ended September 30, 2010. At September 30, 2009, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund; at September 30, 2010, these securities were valued on the basis of evaluated bids furnished to the Fund by a pricing service where inputs are observable to the Fund.

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

Securitized Asset Fund

Asset Valuation Inputs

Investments in Securities	Balance as of September 30, 2009		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)		Net Purchases (Sales)			Transfers into Level 3		Transfers out of Level 3			Balance as of September 30, 2010
Bonds and Notes
ABS Home Equity	$	2,352,830	$	—	$	69,585		$	1,497,062	$	(2,425,480	)	$	—	$	(1,148,428	)	$	345,569
ABS Other		1,570,000		—		—			—		4,588,503			—		(1,570,000	)		4,588,503
Collateralized Mortgage Obligations		136,112		—		(6,746	)		6,745		—			—		(136,111	)		—
Total	$	4,058,942	$	—	$	62,839		$	1,503,807	$	2,163,023		$	—	$	(2,854,539	)	$	4,934,072

29  |

Notes to Financial Statements – continued

September 30, 2010

Debt securities valued at $2,854,539 were transferred from Level 3 to Level 2 during the year ended September 30, 2010. At September 30, 2009, these securities were valued using broker-dealer bid quotations based on inputs unobservable to the Fund; at September 30, 2010, these securities were valued on the basis of evaluated bids furnished to the Fund by a pricing service where inputs are observable to the Fund.

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

4.Derivatives. Derivative instruments are defined as financial instruments whose value and performance are based on the value and performance of another security or financial instrument. Derivative instruments that the Funds currently use include futures contracts.

The Funds are subject to the risk that changes in interest rates will affect the value of the Funds’ investments in fixed income securities. The Funds will be subject to increased interest rate risk to the extent that they invest in fixed-income securities with longer maturities or durations, as compared to investing in fixed-income securities with shorter maturities or durations. The Funds may use futures contracts to manage the Funds’ duration in order to control interest rate risk without having to buy or sell portfolio securities. During the year ended September 30, 2010, the Securitized Asset Fund used futures contracts in accordance with this objective.

Transactions in derivative instruments for Securitized Asset Fund during the year ended September 30, 2010 were as follows:

Statements of Operations Caption	Interest Rate Contracts
Net Realized Gain (Loss) on:
Futures contracts	$	(612,603	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		300,688

As the Funds value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting under authoritative guidance for derivative instruments.

Volume of derivative activity, as a percentage of net assets, for Securitized Asset Fund, based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the year ended September 30, 2010:

	Futures
Average Notional Amount Outstanding		2.27%
Highest Notional Amount Outstanding		8.33%
Lowest Notional Amount Outstanding		0.00%
Notional Amount Outstanding as of September 30, 2010		0.00%

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

5.Purchases and Sales of Securities. For the year ended September 30, 2010, 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	$	—	$	—	$	17,159,193	$	31,988,968
Securitized Asset Fund		1,342,917,001		1,235,809,374		195,531,196		65,497,506

6.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.

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Notes to Financial Statements – continued

September 30, 2010

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.

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

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

c.  Administrative Fees. Natixis Advisors provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Natixis Advisors is a wholly-owned subsidiary of Natixis US. Loomis Sayles has agreed to pay, without reimbursement from the Trust or Funds, fees to Natixis Advisors for services to the Funds.

d.  Trustees Fees and Expenses. The Trust does not pay any compensation directly to its officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distributors, Natixis US or their affiliates. Effective January 1, 2010, the Chairperson of the Board receives a retainer fee at the annual rate of $250,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $80,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, each committee chairman receives an additional retainer fee at an annual rate of $15,000. Each Contract Review and Governance Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $7,500 for each Committee meeting that he or she attends in person and $3,750 for each meeting that he or she attends telephonically. Each member of the ad hoc Committee on Alternative Investments received a one-time fee of $10,000. The ad hoc Committee on Alternative Investments is not a standing committee. These fees are allocated among the funds in the Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV, Natixis Cash Management Trust, Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I, Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”) and Hansberger International Series based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.

Prior to January 1, 2010, the Chairperson of the Board received a retainer fee at the annual rate of $200,000. The Chairperson did not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that she attended. Each Independent Trustee (other than the Chairperson) received, in the aggregate, a retainer fee at the annual rate of $65,000. Each Independent Trustee also received a meeting attendance fee of $7,500 for each meeting of the Board of Trustees that he or she attended in person and $3,750 for each meeting of the Board of Trustees that he or she attended telephonically. In addition, each committee chairman received an additional retainer fee at an annual rate of $10,000. Each Contract Review and Governance Committee member was compensated $5,000 for each Committee meeting that he or she attended in person and $2,500 for each meeting that he or she attended telephonically. Each Audit Committee member was compensated $6,250 for each Committee meeting that he or she attended in person and $3,125 for each meeting that he or she attended telephonically.

7.Line of Credit. Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participates in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participates in the line of credit. Interest is charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 1.25%. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

Prior to March 10, 2010, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Hansberger International Series, participated in a $200,000,000 committed unsecured line of credit provided by State Street Bank, with an individual limit of $125,000,000 for each fund that participated in the line of credit. Interest was charged to each participating fund based on its borrowings at a rate per annum equal to the greater of the Federal Funds rate or overnight LIBOR, plus 0.75%. In addition, a commitment fee of 0.125% per annum, payable at the end of each calendar quarter, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.

For the year ended September 30, 2010, none of the Funds had borrowings under these agreements.

31  |

Notes to Financial Statements – continued

September 30, 2010

8.Concentration of Ownership. From time to time, the Funds may have a concentration of several shareholders having a significant percentage of shares outstanding. Investment activities of these shareholders could have material impacts on the Funds. As of September 30, 2010, four shareholder accounts owned more than 5% of High Income Opportunities Fund’s total outstanding shares, representing 38.68% of the Fund’s net assets. Such ownership may be beneficially held by multiple individuals or entities other than the owner of record.

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

	High Income Opportunities Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		696,898		$	6,634,833			2,086,936		$	14,390,117
Issued in connection with the reinvestment of distributions		492,408			4,619,407			644,493			4,654,487
Redeemed		(2,487,653	)		(23,802,300	)		(2,683,261	)		(19,696,043	)
Increase (decrease) from capital share transactions		(1,298,347	)	$	(12,548,060	)		48,168		$	(651,439	)
	Securitized Asset Fund
	Year Ended September 30, 2010						Year Ended September 30, 2009
Institutional Class	Shares			Amount			Shares			Amount
Issued from the sale of shares		43,829,638		$	463,734,471			8,990,651		$	82,673,361
Issued in connection with the reinvestment of distributions		50,062			521,565			97,452			860,439
Redeemed		(13,015,425	)		(138,295,521	)		(20,298,880	)		(185,250,822	)
Increase (decrease) from capital share transactions		30,864,275		$	325,960,515			(11,210,777	)	$	(101,717,022	)

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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, 2010, 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, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

November 22, 2010

33  |

Special Meeting of Shareholders (Unaudited)

A special meeting of shareholders of the Trust was held on May 27, 2010 to consider a proposal to elect four Trustees to the Board of Trustees. The proposal was approved by shareholders of the Trust. The results of the shareholder vote were as follows:

Nominee	Voted “For”*		Withheld*
Kenneth A. Drucker		1,441,815,530		17,903,098
Wendell J. Knox		1,441,546,136		18,172,492
Erik R. Sirri		1,441,468,045		18,250,582
Peter J. Smail		1,439,322,473		20,396,155

* Trust-wide voting results.

In addition to the Trustees named above, the following also serve as Trustees of the Trust: Graham T. Allison, Jr., Edward A. Benjamin, Daniel M. Cain, Sandra O. Moose, Cynthia L. Walker, Robert J. Blanding and John T. Hailer.

|  34

2010 U.S. Tax Distribution Information to Shareholders (Unaudited)

Corporate Dividends Received Deduction. For the fiscal year ended September 30, 2010, 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		0.67%

Qualified Dividend Income. For the fiscal year ended September 30, 2010, the High Income Opportunities Fund will designate up to the maximum amount allowable pursuant to the Internal Revenue Code as qualified dividend income eligible for reduced tax rates. These lower rates range from 0% to 15% depending on an individual’s tax bracket. If the High Income Opportunities Fund pays a distribution during calendar year 2010, complete information will be reported in conjunction with Form 1099-DIV.

35  |

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 Natixis Funds at 800-225-5478.

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 During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
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	42 Director, Taubman Centers, Inc. (real estate investment trust)	Significant experience on Board of Trustees of the Trust and/or other business organizations; government experience (including as Assistant Secretary of Defense under President Clinton); academic experience
Edward A. Benjamin (1938)	Trustee Since 2002 Chairman of the Contract Review and Governance Committee	Retired	42 Formerly, Director, Precision Optics Corporation (optics manufacturer)	Significant experience on Board of Trustees of the Trust and/or other business organizations; significant experience providing legal counsel to boards, funds, advisers and other financial institutions (former partner at Ropes & Gray LLP)
Daniel M. Cain (1945)	Trustee Since 2003 Chairman of the Audit Committee	Chairman (formerly, President and Chief Executive Officer) of Cain Brothers & Company, Incorporated (investment banking)	42 Director, Sheridan Healthcare Inc. (physician practice management)	Significant experience on Board of Trustees of the Trust and/or other business organizations; experience in the financial industry, including roles as chairman and former chief executive officer of an investment banking firm
Kenneth A. Drucker (1945)	Trustee Since 2008 Audit Committee Member	Formerly, Vice President and Treasurer, Sequa Corp. (aerospace, automotive and metal manufacturing)	42 Formerly, Director, M Fund, Inc. (investment company); Director, Gateway Trust (investment company)	Significant experience on Board of Trustees of the Trust and/or other business organizations; executive experience including as treasurer of a corporation
Wendell J. Knox (1948)	Trustee Since 2009 Contract Review and Governance Committee Member	Director (formerly, President and Chief Executive Officer) of Abt Associates Inc. (research and consulting)	42 Director, Eastern Bank (commercial bank); Director, The Hanover Insurance Group (property and casualty insurance)	Significant experience on Board of Trustees of the Trust and/or other business organizations; executive experience including roles as president and chief executive officer of a consulting company

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Trustee and Officer Information – continued

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 During Past 5 Years	Experience, Qualifications, Attributes, Skills for Board Membership
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)	42 Director, Verizon Communications; Director, AES Corporation (international power company); Formerly, Director, Rohm and Haas Company (specialty chemicals)	Significant experience on Board of Trustees of the Trust and/or other business organizations; executive experience at a management consulting company
Erik R. Sirri (1958)	Trustee Since 2009 Contract Review and Governance Committee Member	Professor of Finance at Babson College; formerly, Director of the Division of Trading and Markets at the Securities and Exchange Commission	42 None	Experience as Director of the Division of Trading and Markets at the Securities and Exchange Commission; academic experience and training as an economist
Peter J. Smail (1952)	Trustee Since 2009 Contract Review and Governance Committee Member	Retired; formerly, President and Chief Executive Officer of Pyramis Global Advisors (investment management)	42 None	Mutual fund industry and executive experience, including roles as president and chief executive officer for an investment adviser
Cynthia L. Walker (1956)	Trustee Since 2005 Audit Committee Member	Deputy Dean for Finance and Administration, Yale University School of Medicine; formerly, Executive Dean for Administration, Harvard Medical School; and formerly, Dean for Finance and Chief Financial Officer, Harvard Medical School	42 None	Significant experience on Board of Trustees of the Trust and/or other business organizations; executive experience in a variety of academic organizations, including roles as dean for finance and administration
Interested Trustees
Robert J. Blanding1 (1947) 555 California Street San Francisco, CA 94104	Trustee President, Chief Executive Officer and Trustee since 2002	President, Chairman, Director and Chief Executive Officer, Loomis, Sayles & Company, L.P.	42 None	Significant experience on Board of Trustees of the Trust; continuing service as president, chairman, and Chief Executive Officer of Loomis, Sayles & Company, L.P.
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.	42 None	Significant experience on Board of Trustees of the Trust; continuing experience as Chief Executive Officer of Natixis Global Asset Management, L.P.

37  |

Trustee and Officer Information – continued

* Each trustee serves until retirement, resignation or removal from the Board of Trustees. The current retirement age is 72; however, the trustees have designated 2010 as a transition period so that any trustees who are currently age 72 or older or who reach age 72 during the remainder of 2010 will not be required to retire until the end of calendar year 2011. 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 November 20, 2009.

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

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

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

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)	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.
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.

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

** Each person listed above, except as noted, holds the same position(s) with the Fund Complex Mr. Fuss is not an officer of the Natixis Funds Trusts or the Hansberger International Series. Previous positions during the past five years with 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.

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Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer and persons performing similar functions.

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. Kenneth A. Drucker are members of the audit committee and have been designated as “audit committee financial experts” by the Board of Trustees. Each of these individuals is also an Independent Trustee of the Registrant.

Item 4. Principal Accountant Fees and Services.

Fees billed by the Principal Accountant for services rendered to the Registrant.

The table below sets forth fees billed by the principal accountant, PricewaterhouseCoopers LLP, for the past two fiscal years for professional services rendered in connection with a) the audit of the Registrant’s annual financial statements and services provided in connection with regulatory filings; b) audit-related services (including services that are reasonably related to the performance of the audit of the Registrant’s financial statements and but not reported under “Audit Fees”); c) tax compliance, tax advice and tax planning and d) all other fees billed for professional services rendered by the principal accountant to the Registrant, other than the services reported as a part of (a) through (c) of this Item.

	Audit fees				Audit-related fees1				Tax fees2				All other fees
	10/1/08- 9/30/09		10/01/09- 9/30/10		10/1/08- 9/30/09		10/01/09- 9/30/10		10/1/08- 9/30/09		10/01/09- 9/30/10		10/1/08- 9/30/09		10/01/09- 9/30/10
Loomis Sayles Funds I	$	352,882	$	343,510	$	4,741	$	7,955	$	96,509	$	84,983	$	—	$	—

1. Audit-related fees consist of:

2009 - performance of agreed-upon procedures related to the Registrant’s deferred compensation plan.

2010 - performance of agreed-upon procedures related to the Registrant’s deferred compensation plan, review of Form N-1A filings, and consulting services with respect to regulatory advice.

2. Tax fees consist of:

2009 - review of Registrant’s tax returns and consulting services with respect to new security types.

2010 - review of Registrant’s tax returns, consulting services with respect to new security types and consulting services related to new Massachusetts filing requirements.

Aggregate fees billed to the Registrant for non-audit services during 2009 and 2010 were $101,250 and $92,938, respectively.

Fees billed by the Principal Accountant for services rendered to the Adviser and Control Affiliates.

The following table sets forth the fees billed by the Registrant’s principal accountant for non-audit services rendered to Loomis, Sayles & Company, L.P. and entities controlling, controlled by or under common control with Loomis, Sayles & Company, L.P. (“Control Affiliates”) that provide ongoing services to the Registrant, for engagements that related directly to the operations and financial reporting of the Registrant for the last two fiscal years.

	Audit-related fees				Tax fees				All other fees
	10/1/08- 9/30/09		10/01/09- 9/30/10		10/1/08- 9/30/09		10/01/09- 9/30/10		10/1/08- 9/30/09		10/01/09- 9/30/10
Control Affiliates	$	12,000	$	12,000	$	—	$	—	$	—	$	—

The following table sets forth the aggregate fees billed by the Registrant’s principal accountant for non-audit services rendered to Loomis, Sayles & Company, L.P. and Control Affiliates that provide ongoing services to the Registrant, for the last two fiscal years, including the fees disclosed in the table above.

	Aggregate Non-Audit Fees
	10/1/08- 9/30/09		10/01/09- 9/30/10
Control Affiliates	$	18,500	$	174,242

None of the services described above were approved pursuant to (c)(7)(i)(C) of Regulation S-X.

Audit Committee Pre Approval Policies.

Annually, the Registrant’s Audit Committee reviews the audit, audit-related, tax and other non-audit services together with the projected fees, for services proposed to be rendered to the Trust and/or other entities for which pre-approval is required during the upcoming year. Any subsequent revisions to already pre-approved services or fees (including fee increases) and requests for pre-approval of new services would be presented for consideration quarterly as needed.

If, in the opinion of management, a proposed engagement by the Registrant’s independent accountants needs to commence before the next regularly scheduled Audit Committee meeting, any member of the Audit Committee who is an independent Board member is authorized to pre-approve the engagement, but only for engagements to provide audit, audit related and tax services. This approval is subject to review of the full Audit Committee at its next quarterly meeting. All other engagements require the approval of all the members of the Audit Committee.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

Included as part of the Report to Shareholders filed as Item 1 herewith.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Securities Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a) (1)	Code of Ethics required by Item 2 hereof, filed herewith as Exhibit (a)(1).
(a) (2)	Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith as Exhibits (a)(2)(1) and (a)(2)(2), respectively.
(a) (3)	Not applicable.
(b)	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002 are filed herewith as Exhibit (b).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Loomis Sayles Funds I
By:	/s/    ROBERT J. BLANDING
Name:	Robert J. Blanding
Title:	President and Chief Executive Officer
Date:	November 22, 2010

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 22, 2010

By:	/s/    MICHAEL C. KARDOK
Name:	Michael C. Kardok
Title:	Treasurer
Date: November 22, 2010