Natixis Funds: Conference call

Summary of conference call with Warren Koontz on October 15, 2008
Loomis, Sayles & Company – Loomis Sayles Global Markets Fund & Loomis Sayles Value Fund

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3Q08 Review

In the 3^rd quarter we gave up a little to the benchmark due in large part to the fact that financials rallied (2^nd best performing sector in the market) and we are underweight there. We’ve made that back into early Q4 here and YTD we remain about 200bps over the benchmark which puts us in the top quartile of our Mstar peer group. We remain committed to and focused on preserving capital and are approaching the market every day with that in mind.
We have maintained our underweight in financials and in fact did some further trimming in the space during the quarter. We sold our stakes in Merrill Lynch and Morgan Stanley in mid-Sept during the time when there was a lack of visibility and solvency came into question after the demise of Lehman Bros. Although the outcome was not as bad as it could have been, the stocks are currently trading below what we sold them for and the future remains uncertain.
We have increased the number of names in the portfolio to the upper end of the 60-70 range because we are finding some more attractive opportunities within this market correction but also because we’re managing and broadening out stock-specific risk. The portfolio remains the same from a relative sector allocation standpoint where the biggest underweights continue to be financials and energy and our moves are incremental in nature.
How we define attractive investment opportunities particularly in this market is:
1. good cash flow
2. balance sheet health: debt levels, debt rolling and capital needs
3. earnings expectations more reasonable/conservative given consensus estimates for 09 are too high

We are focused on survivors in the financials space, the ones likely to gain in the wake of this crisis, and the gov’t seems to be doing the same by offering assistance to the very companies that seem the strongest. This added support just serves to reinforce and secure their position as the backbone of the financial system. We anticipate meaningful consolidation in the sector and the strongest are likely to get stronger.
Our energy weight remains low (below the benchmark) and we are comfortable with that given the backdrop: slowing demand and speculation driven by hedge funds is now reversing due to the unwinding of many of these funds with more anticipated.
We are also paying close attention to the US$ particularly relative to the Euro which has an impact on our portfolio in our ADR and multinational exposure. We have seen strengthening and we do not foresee that abating any time soon due to the demand for US$ to buy Treasuries.

Q&A
Click any of the questions below to see the answer.

1) Although you have navigated the turmoil well, has the experience taught you any lessons and are you likely to do anything different in the future as a result? 2) Your reactions to some of the uncertainty in the quarter may be characterized as looking like a no-tolerance policy; is that in fact your approach?
Can you talk about your outlook and which areas of the market are looking attractive to you and that you are drawn towards?
Can you talk more about the positioning of the Global Markets Fund: the US vs international exposure and what you are emphasizing thematically in the fund/areas you are finding attractive?
What drove the positive performance of financial stocks in the quarter, particularly as compared with corporate bonds where yields continued climbing to levels indicating extreme distress?

1) Although you have navigated the turmoil well, has the experience taught you any lessons and are you likely to do anything different in the future as a result? 2) Your reactions to some of the uncertainty in the quarter may be characterized as looking like a no-tolerance policy; is that in fact your approach?

Warren Koontz: 1) What has been reaffirmed to us is how important investment discipline is in that it serves as your rudder in turbulent times. Our commitment to risk management has been very important here and has enabled us to remain ahead of the majority of our peers. We think about risk not necessarily from a statistician’s point of view but in controlling it in the areas we can: running a diversified portfolio, evaluating and assessing stock-specific risk, etc.
2) Not so much a no-tolerance policy in general but where the survival of the business is in question. In the case of Merrill Lynch and Morgan Stanley there was real concern as to how and from where they were going to raise capital and neither had depository bases or bank charters to lean on. So if the risk to the downside is overwhelming, that we are not willing to tolerate.

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Can you talk about your outlook and which areas of the market are looking attractive to you and that you are drawn towards?

Warren Koontz: It’s really on a stock-specific basis because we are seeing considerable dispersion even within industries so you can find stock-specific opportunity without a thematic overlay. We are focused on adding to companies that we have more confidence in and vice versa.

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Can you talk more about the positioning of the Global Markets Fund: the US vs international exposure and what you are emphasizing thematically in the fund/areas you are finding attractive?

Warren Koontz: US/foreign is about 68%/32% where the largest foreign weights are to UK 5%, Switzerland 5% and Japan 4% and it is all the result of stock-specific opportunities as opposed to a top-down call given it’s a best ideas fund. Outside of stock-specific plays any themes that exist are on the fixed side and in corporate space specifically where Dan Fuss is finding opportunities due to attractive valuation levels resulting from the systematic declines. Dave Rolley, on the global side, is emphasizing US$ denominated issues given our view that the dollar continues to strengthen in here. On the equity side the portfolio is underweight financials and we are similarly focused on companies with financial stability and strong balance sheets: JP Morgan, McDonald’s, Wal-Mart and ABB to name a few.

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What drove the positive performance of financial stocks in the quarter, particularly as compared with corporate bonds where yields continued climbing to levels indicating extreme distress?

Warren Koontz: There was a disconnect but that has balanced out somewhat here in the early part of Q4. A big part of the reason in my view was short covering and that is why we were skeptical of the rally to begin with.

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Loomis Sayles Global Markets Fund¹
(Class A)

Expense
Ratios²

At Net Asset Value^†
as of September 30, 2008

With Max. Sales Charge³
as of September 30, 2008

TRADING SYMBOL

INCEPTION
DATE

GROSS

NET

1 YEAR TOTAL

5 YEAR AVERAGE ANNUAL

10 YEAR AVERAGE ANNUAL

1 YEAR TOTAL

5 YEAR AVERAGE ANNUAL

10 YEAR AVERAGE ANNUAL

LGMAX

2/1/06

1.37%

1.25%

-21.87%

7.65%

10.94%

-26.39%

6.39%

10.29%

Loomis Sayles Value Fund^{1, 4}
(Class A)

Expense
Ratios²

At Net Asset Value^†
as of September 30, 2008

With Max. Sales Charge³
as of September 30, 2008

TRADING SYMBOL

INCEPTION
DATE

GROSS

NET

1 YEAR TOTAL

5 YEAR AVERAGE ANNUAL

10 YEAR AVERAGE ANNUAL

1 YEAR TOTAL

5 YEAR AVERAGE ANNUAL

10 YEAR AVERAGE ANNUAL

LSVRX

06/30/06

1.09%

-19.01%

9.71%

5.32%

-23.66%

8.42%

4.70%

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and net asset value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost.

^† These results include reinvestment of any dividends and capital gains but do not include a sales charge.
1. Performance reflects waived fees and expenses. Returns would have been lower without these waivers.
2. The Gross Expense Ratio does not reflect any potential reimbursement/waiver of expenses as stated in the most recent fund prospectus. The Net Expense Ratio reflects the reimbursement/waiver of expenses, if any, as stated in the most recent fund prospectus. Please Note: Fund Expenses and Expense Reductions are subject to change. Expense Reductions are contractual and are set to expire 1/31/09. Investors should consult the most recent fund prospectus for more detailed information.
3. Maximum sales charge (Class A shares) for all stock funds is 5.75%. Maximum sales charge (Class A shares) for all bond funds is 4.50%, excluding MA Tax Free Income Fund, which is 4.25%, and Limited Term U.S. Government Fund which is 3.00%. Class B shares are subject to a maximum contingent deferred sales charge (CDSC) of 5.00%. Class C shares are subject to a CDSC of 1.00% on redemptions made within one year of the date of purchase.
4. The returns above include performance from the prior Retail Class shares, which were redesignated as Class A shares on June 1, 2007. The prior Retail Class performance has been restated to reflect the sales loads of Class A shares. For the periods prior to the inception of the Retail Class shares (June 30, 2006), performance shown for that class has been based on the performance of the fund's Institutional Class shares, adjusted to reflect the higher fees and expenses paid by Class A shares. The fund's total annual operating expenses have been limited under binding expense cap arrangements. The performance would have been lower without such waivers.

Top five holdings for the Loomis Sayles Global Markets Fund

Information is as of 8/31/2008*
Apple, Inc.	2.73%
QUALCOMM, Inc.	2.41%
U.S. Treasury Bonds	2.25%
First Solar, Inc.	1.79%
Flowserve Corp.	1.79%

* The portfolio is actively managed. The top five holdings are subject to change.

Top five holdings for the Loomis Sayles Value Fund

Information is as of 8/31/2008*
AT&T, Inc.	4.14%
ExxonMobil Corp.	3.39%
Total SA, Sponsored ADR	2.40%
Time Warner, Inc.	2.23%
JPMorgan Chase & Co.	2.12%

* The portfolio is actively managed. The top five holdings are subject to change.

Investment Products are distributed or marketed by Natixis Distributors, L.P. Individual advisory services are provided by Natixis Asset Management Advisors, L.P.

Natixis Asset Management Advisors, L.P., 399 Boylston Street, Boston, MA 02116

Nothing herein is intended as specific investment advice and no person should make any investment decision based solely on the information contained in this summary. There is no assurance that this strategy will achieve its objective and correlation may vary from one portfolio to another. Reference to specific securities or holdings should not be considered recommendations.

Because the portfolio is actively managed, there can be no assurances the fund invests or will continue to invest in the securities or sectors referenced above Such references should not be considered a recommendation for action. The opinions expressed are those of the manager's as of the date indicated, and are subject to change as economic or market conditions change. Estimates and predictions are not guaranteed to occur.

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This portfolio is actively managed. There is no assurances the fund will continue to invest in securities mentioned. Reference to specific securities or holdings should not be considered recommendations for action by investors.

For more complete information, including a prospectus, please contact your financial advisor. You may also view a current prospectus online, order literature through our site, or contact an Investor Service Representative at 800-225-5478. Investors should consider a fund's objective, risks and expenses carefully before investing. This information, and other information, can be found in the fund's prospectus. Please read the prospectus carefully before investing. Other expenses, including sales charges, apply to a continued investment in the fund and are described in the fund's current prospectus.
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