MUTUAL FUND JUNE 30 COMMENTARY 2021

Global Fund

Market Conditions FUND FACTS OBJECTIVE • US Treasury yields fell during the quarter despite a marked increase in headline inflation, continued Seeks high total investment strong consumer demand and sizeable fiscal support. Strong overseas demand played a key role return through a combination of high current income and capital in pushing US rates lower as euro zone and Japanese investors sought the more attractive value appreciation of hedged US yields compared to negligible local nominal yields. Meanwhile, core euro zone

Share class I government yields moved moderately higher amid the acceleration in COVID vaccinations. Inception 5/10/1991 • The Federal Reserve (Fed) acknowledged that it will need to think about tapering its bond Ticker LSGBX purchases at some point and penciled in two rate hikes by the end of 2023. However, meeting CUSIP 543495782 minutes showed that the central bank was broadly unmoved in its view on the economic outlook. While the higher inflation reading came as a surprise, some of the details suggested that there were temporary factors at play – particularly the rise in prices of used cars, which is not expected to last. Fed Chairman Powell’s comments that “price stability is half of our mandate” helped to assuage concerns that should inflation were to run hot it would force a more abrupt central bank response. • The US dollar weakened considerably against major peers for the first half of the quarter, but rallied back firmly in June. The dollar surged following the Fed’s policy meeting on June 16 reflecting the central bank’s more hawkish tone. markets appeared to be surprised by the Fed’s shift from putting off the discussion of eventual tapering to acknowledging the need for it to be addressed. The prices of crude oil and other commodities soared, particularly in the first half of the quarter, during the dollar’s initial slide. Oil prices were buoyed by strong demand and comments from OPEC that hinted at more limited production from the US despite rising prices. • Global investment grade corporate spreads dropped to their lowest level since January 2018, indicative of investors’ strong demand for even marginally higher yielding assets in a low rate environment. Markets appeared to have embraced the Fed’s stance that price increases will prove

CLASS I PERFORMANCE (%) CUMULATIVE TOTAL RETURN AVERAGE ANNUALIZED RETURN 3 MONTH YTD 1 YEAR 3 YEAR 5 YEAR 10 YEAR FUND 1.59 -2.94 5.80 5.41 3.54 2.45 BENCHMARK 1.31 -3.21 2.63 4.23 2.34 2.05 Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Investment return and value will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit www.loomissayles.com. Additional share classes may be available for eligible investors. Performance will vary based on the share class. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. You may not invest directly in an index. Gross expense ratio 0.76% (Class I). Net expense ratio 0.69%. As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense limitation of the fund has been exceeded. This arrangement is set to expire on 1/31/2022. When an expense limitation has not been exceeded, the fund may have similar expense ratios and/or yields. The Class I inception date is 5/10/1991. Class I shares are only available to certain institutional investors only; minimum initial investment of $100,000.

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to be transitory as economies continue to reopen. Financial conditions continue to be at historically accommodative levels, and have spurred a wave of corporate borrowing that has been met with strong demand, which has helped drive spreads even tighter..

Portfolio Review • The fund outperformed its benchmark, the Bloomberg Barclays Global Aggregate Index, primarily due to the allocation to corporate credit sectors and allocation to high yield credit.

Contributors • Allocations to the banking, capital goods insurance and transportation sectors were the largest positive contributors to the fund’s relative performance during the quarter. Within the banking sector, the fund’s favored European names were top contributors as earnings strongly rebounded in the latest period while banks also maintained healthy asset quality. Exposure to airlines also contributed as global vaccination progress helped spur a rebound in consumer demand. • The fund’s currency allocation had a positive impact on relative performance. Overweight positioning in the Brazilian real and Mexican peso were the main contributors. Emerging market benefited this quarter from the rise in commodity prices. While initially weakening during the beginning of the quarter, the US dollar rallied at the end of June primarily due to the recent hawkish tone of the Federal Reserve. • Although overall positioning along the (which depicts the relationship among yields across the maturity spectrum) and with respect to duration and corresponding sensitivity detracted, local market positioning along the South African rand-pay, Brazilian real- pay and Mexican peso-pay curves was additive.

Detractors • Duration and yield curve positioning detracted from relative performance. Local market positioning in the US dollar and Australian dollar-pay markets had a very small negative impact on returns.. As yields fell in the US dollar-pay market, the portfolio’s underweight in intermediate and longer maturities detracted from relative performance. • The fund’s underweight allocation to local authorities and the consumer cyclical sector were modest detractors for the quarter. • Although overall currency allocation was a positive for performance, underweight positioning to the euro detracted as the dollar weakened against most G-10 currencies during the period.

Outlook • We believe near-term increases in inflation to be mostly transitory despite continued economic reopenings and supply bottlenecks. Inflation is expected to gradually shift upwards given the massive amount of fiscal stimulus and cyclical upturn, but we do not expect a consistent overshoot. However, we acknowledge risks of more persistent inflationary pressures, particularly in the US. We will look to the labor market – especially wage increases – as evidence of stickier inflation.

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• Global growth prospects continue to look strong for 2021. PMI manufacturing gauges remain comfortably in expansionary territory, but the divergence between developed and emerging countries continues to widen. We’d like to see this gap narrow. Inventories around the world are expected to contract while demand increases, which should help keep production strong. The pace of vaccinations should pick up globally and follow the lead of the US and UK with economic reopenings expected to drive increased demand around the world.

• Credit spreads should remain well supported given the improvement in corporate profits and continued accommodative monetary and fiscal policies. We expect positive earnings momentum to continue, although at a more moderate pace than experienced in the first quarter. Profit margins are not expected to incur any downward pressure in the near-term as most companies are passing on higher input costs to their customers.

• The primary US dollar trend is toward softening, but we do not foresee a considerable decline. Healthy investor risk sentiment and the cyclical upturn in the global economy are consistent with a weaker dollar. Given the expectation for consumption, business investment and government spending to all be strong, this would imply solid growth in global demand. Against a backdrop of improving global demand growth, we would expect to see moderate downward pressure on the dollar.

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About Risk securities may carry one or more of the following risks: credit, interest rate (as interest rates rise bond prices usually fall), inflation and liquidity.Currency exchange rates between the US dollar and foreign currencies may cause the value of the fund’s investments to decline. Below investment grade fixed income securities may be subject to greater risks (including the risk of default) than other fixed income securities.Foreign securities may involve heightened risk due to currency fluctuations. Additionally, they may be subject to greater political, economic, environmental, credit and information risks. Foreign securities may be subject to higher volatility than US securities due to varying degrees of regulation and limited liquidity. Mortgage-related and asset-backed securities are subject to the risks of the mortgages and assets underlying the securities. Other related risks include prepayment risk, which is the risk that the securities may be prepaid, potentially resulting in the reinvestment of the prepaid amounts into securities with lower yields.

Bloomberg Barclays Global Aggregate Index provides a broad-based measure of the global investment grade fixed income markets. The three major components of this Index are the US Aggregate, the Pan-European Aggregate and the Asian-Pacific Aggregate Indices. The Index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities. Indexes are unmanaged and do not incur fees. It is not possible to invest directly in an index.

Outlook as presented in this material reflects subjective judgments and assumptions of the portfolio team and does not necessarily reflect the views of Loomis, Sayles & Company, L.P. There is no assurance that developments will transpire as stated. Opinions expressed will evolve as future events unfold.

Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Please visit www.loomissayles.com or call 800-633-3330 for a prospectus and a summary prospectus, if available, containing this and other information. Read it carefully.

Natixis Distribution, L.P. (fund distributor, member FINRA|SIPC) and Loomis, Sayles & Company L.P. are affiliated.

LS Loomis | Sayles is a trademark of Loomis, Sayles & Company, L.P. registered in the US Patent and Trademark Office.

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