Global Bond Fund

Portfolio managers Kenneth Buntrock and David Rolley and their team of credit analysts at Loomis Sayles & Company, L.P. research debt offerings in the same way equity analysts research stocks, looking for undervalued bonds where they see a yield premium, the potential for price appreciation, or both. They analyze in detail the financial condition of individual countries and companies, as well as the terms of specific bond offerings. They believe price appreciation can come from a variety of catalysts including improving country or company fundamentals which would lead to credit upgrades, changing market supply and demand forces, improving sector or economic trends.

Ideal Investment

The ideal investment typically exhibits some of the following traits:

• An attractive yield, both absolute and relative to Loomis’ credit research expectations
• Good call protection (particularly when prevailing rates are low)
• Stable or improving fundamentals (for corporate bonds)

Portfolio Construction

Portfolio management:

• Seeks to identify attractively valued issues through fundamental research
• Believes the greatest opportunity to add value is through accurately pricing credit risk
• Analyzes stability and volatility of a country's bond markets, the financial strength of the issuer, current interest rates, and Loomis Sayles' expectations regarding general trends in interest rates
• Employs bottom-up security selection approach
• Ensures the average portfolio quality is Aa or higher

Sell Discipline

The investment team may make a sell decision when:

• There is a change in sovereign, industry, or company fundamentals
• The issuer is downgraded by Loomis research
• Relative valuation is not consistent with its expected rating category
• Other securities or sectors offer greater total return potential

Investment Process Chart

Investors should carefully consider the fund's investment objectives, risks, charges, and expenses before investing. For this and other information, please call 800.835.3879 or download a free prospectus. Read it carefully before investing or sending money.

The performance shown represents past performance and is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. From time to time the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns and yields on the Fund are net of expenses and the returns and yields on the indices exclude expenses. Current performance of the Fund may be lower or higher than the performance quoted.

There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for a long-term, especially during periods of downturns in the market.

The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.