Each year, in addition to year-end distributions, some Natixis Funds may be subject to an additional distribution, commonly referred to as a spillback. Spillback distributions represent income and/or gains from the previous year that were not distributed by the end of that year. Spillbacks are normal practice for mutual funds with fiscal years ending December 31. View answers to frequently asked questions below.

This year, we paid the 2007 spillback distributions in April. The bulk of 2007 income and capital gains were paid in December 2007.

Which funds had spillback distributions?

See the tables below. The spillback dividends are listed per share.

• Record date: 4/11/08
• Ex-dividend date: 4/14/08
• Pay date: 4/14/08

• Record date: 4/24/08
• Ex-dividend date: 4/25/08
• Pay date: 4/25/08

What are spillback distributions?

• Spillback distributions represent income and/or gains from the previous year that were not distributed by the end of that year – in this case December 31, 2007.
• The spillback income and/or capital gains are primarily from income earned and/or capital gains realized by the funds during November and December.
• For shareholders' tax purposes, these spillback payments are considered part of 2008 distributions, even though they represent gains and income earned by the funds in 2007.

What are capital gains distributions?

• Capital gains distributions reflect profits from the sale of select fund holdings.
• They are a taxable event for shareholders in taxable (mainly non-retirement) accounts.
• For tax purposes, capital gains are classified either as short- or long-term:
  • Short-term gains are derived from the sale of securities held by a fund for one year or less.
  • Long-term gains represent profits made on the sale of securities held by a fund for more than one year.
• The rate at which shareholders are taxed on these distributions depends on two factors:
  • The shareholder's tax bracket.
  • How long the fund held the securities - not how long the shareholder held shares of the fund.

How will shareholders be notified?

• Shareholders who take distributions in cash will receive checks along with a brief explanatory insert shortly after the pay date.
• Shareholders who reinvest distributions will receive a confirmation of the reinvestment on their normal quarterly statements.

When did the Funds pay distributions?

• See the record, ex-dividend and the payable dates above.
• The funds' NAV were reduced by the amount of the distribution on the ex-dividend date.

What effect do these distributions have on a fund's share price?

When the distribution occurs, the price adjusts to no longer include the value of the distribution, therefore lessening the share price or net asset value (NAV) of the funds. Those reinvesting their distributions purchase shares at the lower adjusted share price.

How will it appear on the quarterly statement?

On the Fund Transaction Detail section, detail of each fund transaction will be shown as follows:

• Shrtterm CG Rein or Shrtterm CG Cash
• Cap Gain Reinvest or Cap Gain Cash
• Income Reinvest or Income Div Cash

What other information should you and your clients know about tax-year 2008 distributions?

• The spillback distributions will be added to the December distributions on shareholders' 2008 Form 1099-DIV, which will mail to shareholders in January 2009. February 2009 for AEW Real Estate Fund.
• We'll save shareholders time by determining applicable capital gains rates for their distributions.
• Shareholders should consult their tax adviser regarding the necessary filings with the IRS.

If you have any questions, please call the National Sales Desk at 800-862-4863.

The mutual funds referred to in this website are offered and sold only to persons who are eligible to purchase U.S. registered investment funds and are offered by prospectus only.

---

Copyright © 2009 Natixis Distributors, L.P. (member FINRA) - All rights reserved.     Privacy Policy  |  Business Continuity