Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on February 16, 1998. This chart and table reflect results achieved by the previous subadviser using different investment strategies for periods prior to February 16, 1998. The Fund's performance may have been different under its current advisory arrangements and investment strategies.

The bar chart shows the Fund's total returns for Class A shares for each of the last ten calendar years. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

                                                 (total return)
1993         1994         1995       1996        1997        1998         1999        2000        2001        2002
7.89%       -1.64%       30.76%      17.05%      17.23       29.08%       24.74      -19.52%     -20.46%     -28.08%

The table below shows how the average annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Russell 1000 Growth Index, an unmanaged index measuring the performance of those Russell 1000 companies selected for their greater growth orientation. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charge that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Russell 1000 Growth Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

-----------------------------------------------------------------------------------------------------------------------------
                                                                                Since Class A  Since Class B   Since Class C
Average Annual Total Returns                                                      Inception      Inception        Inception
(for the periods ended December 31, 2002)        Past 1 Year     Past 5 Years      (8/3/92)      (9/13/93)        (12/30/94)
-----------------------------------------------------------------------------------------------------------------------------
Class A - Return Before Taxes                      -32.23%          -6.92%           2.89%           --               --
        Return After Taxes on Distributions*       -32.23%          -9.13%           0.89%           --               --
        Return After Taxes on Distributions &
                Sales of Fund Shares*              -19.79%          -4.71%           2.65%           --               --
Class B - Return Before Taxes                      -32.31%          -6.76%             --          2.52%              --
Class C - Return Before Taxes                      -30.12%          -6.74%             --            --             2.65%
-----------------------------------------------------------------------------------------------------------------------------
Russell 1000 Growth Index**                        -27.88%          -3.84%           6.70%         7.38%            7.71%
-----------------------------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of the Index do not reflect the effect of taxes. The returns of the Index are calculated from 9/30/93 for Class B shares and 12/31/94 for Class C shares. Class A shares commenced operations 8/3/92.

For past expenses of Class A, B and C shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on July 1, 2002. Therefore, the chart and table reflect results achieved by different subadvisers under different investment strategies. The Fund's performance may have been different under its current advisory arrangements and investment strategies.

The bar chart shows the Fund's total returns for Class A shares for each of the last ten calendar years. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

                                                 (total return)
1993         1994         1995       1996        1997        1998         1999        2000        2001        2002
7.95%        0.99%       35.11%      17.21%      33.43%      23.93%       9.45%      -7.31%     -14.58%      -20.03%

The table below shows how the average annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compared to those of the Russell 1000 Value Index, an unmanaged index measuring the performance of those Russell 1000 companies selected for their greater value orientation. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charge that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Russell 1000 Value Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

----------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Since Class B   Since Class C
Average Annual Total Returns                                                                            Inception       Inception
(For the periods ended December 31, 2002)            Past 1 Year     Past 5 Years      Past 10 Years    (9/13/93)        (5/1/95)
----------------------------------------------------------------------------------------------------------------------------------
Class A - Return Before Taxes                          -24.64%           -4.15%             6.43%            --              --
        Return After Taxes on Distributions*           -24.64%           -5.89%             3.57%            --              --
        Return After Taxes on Distributions &
                Sales of Fund Shares*                  -15.13%           -3.41%             4.45%            --              --
Class B - Return Before Taxes                          -24.63%           -4.00%               --           6.09%             --
Class C - Return Before Taxes                          -22.23%           -3.93%               --             --            5.58%
----------------------------------------------------------------------------------------------------------------------------------
Russell 1000 Value Index**+                            -15.52%            1.16%            10.80%          9.71%           9.91%
S&P 500 Index**                                        -22.10%           -0.59%            -9.34%          9.26%           8.87%
----------------------------------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of each Index do not reflect the effect of taxes. The returns of each Index are calculated from 9/30/93 for Class B shares and 5/31/95 for Class C shares. Class A shares commenced operations 5/6/31.

+ The Russell 1000 Value Index replaced the S&P 500 Index as the Fund's comparative index because CDC IXIS Advisers believes it is more representative of the types of stocks in which the Fund can invest.

For past expenses of Classes A, B and C shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on February 14, 1997. This chart and table reflect results achieved by the previous subadviser under different investment strategies for periods prior to February 14, 1997. The Fund's performance may have been different under its current advisory arrangements and investment strategies.

The bar chart shows the Fund's total returns for Class A shares for each of the last ten calendar years. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

                                                  (total return)
 1993         1994         1995       1996        1997        1998         1999        2000        2001        2002
29.39%        8.06%        5.78%      3.27%       -7.56       6.69%       87.59%     -28.56%     -23.47%      -21.07%

The table below shows how average annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Morgan Stanley Capital International Europe, Australasia and Far East Index ("MSCI EAFE"), an unmanaged index of the performance of companies representing stock markets in Europe, Australia, New Zealand and the Far East. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, expenses and the maximum sales charge that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The MSCI EAFE returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

----------------------------------------------------------------------------------------------------------------------------------
                                                                                                 Since Class B  Since Class C
 Average Annual Total Returns                                                                      Inception      Inception
 (For the periods ended December 31, 2002)            Past 1 Year  Past 5 Years   Past 10 Years    (9/13/93)      (12/30/94)
----------------------------------------------------------------------------------------------------------------------------------
 Class A - Return Before Taxes                          -25.63%        -4.03%          1.40%            --             --
     Return After Taxes on Distributions*               -25.63%        -5.23%          0.31%            --             --
     Return After Taxes on Distributions &
       Sales of Fund Shares*                            -15.74%        -3.32%          0.97%            --             --
 Class B - Return Before Taxes                          -25.58%        -3.97%            --          -1.30%            --
 Class C - Return Before Taxes                          -23.62%        -3.93%            --             --          -2.57%
----------------------------------------------------------------------------------------------------------------------------------
 MSCI EAFE**                                            -15.66%        -2.61%          4.30%          1.59%          0.74%
----------------------------------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of the Index do not reflect the effect of taxes. The returns of the Index are calculated from 9/30/93 for Class B shares and 12/31/94 for Class C shares. Class A commenced operations 5/21/92.

For past expenses of Classes A, B and C shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The performance results below, prior to July 1, 2001, reflect the results achieved by the Fund's predecessor under different advisory arrangements and different investment strategies. The Fund's current subadviser assumed that function on July 1, 2001. The Fund's performance may have been different had its current arrangements been in place during the periods shown.

The bar chart shows the Fund's total returns for Class A shares for each calendar year since the first full year of operations of the Fund's predecessor. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

(total return)+
1999 2000 2001 2002

54.58% -8.87% -22.65% -35.61%

+ The returns shown above reflect the results of the Kobrick Growth Fund through November 16, 2001, whose assets and liabilities were reorganized into the Fund on November 16, 2001.

Evaluating the Fund's Past Performance - continued

The table below shows how the average annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception, if shorter) compare to those of the Russell 1000 Growth Index, an unmanaged index measuring the performance of those Russell 1000 companies selected for their greater growth orientation. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charge that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Russell 1000 Growth Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

------------------------------------------------------------------------------------------------------
                                                                   Since Class A     Since Class B and
Average Annual Total Returns+                                        Inception       Class C Inception
(for the period ended December 31, 2002)              Past 1 Year    (9/1/98)++          (10/29/99)
------------------------------------------------------------------------------------------------------
Class A - Return Before Taxes                           -39.58%        -2.40%                 --
    Return After Taxes on Distributions*                -39.58%        -3.04%                 --
    Return After Taxes on Distributions &
      Sales of Fund Shares*                             -24.30%        -2.02%                 --
Class B - Return Before Taxes                           -39.46%           --              -16.67%
Class C - Return Before Taxes                           -37.55%           --              -16.18%
------------------------------------------------------------------------------------------------------
Russell 1000 Growth Index**                             -27.88%         1.27%             -18.76%
------------------------------------------------------------------------------------------------------

+ The returns shown above reflect the results of the Kobrick Growth Fund through November 16, 2001, whose assets and liabilities were reorganized into the Fund on November 16, 2001.

++ Until October 29, 1999, the Fund had only one class of shares and offered those shares without a sales charge. Returns prior to that date for Class A shares have been adjusted to reflect sales loads of the Fund's multiple class structure. See "Fund Fees & Expenses". Class A shares commenced operations on September 1, 1998. Classes B and C shares commenced operations on October 29, 1999.

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of the Index do not reflect the effect of taxes. The returns of the Index are calculated from 9/30/98 for Class A shares and 10/31/99 for Classes B and C shares.

For past expenses of Classes A, B and C shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

The bar chart shows the Fund's total returns for Class A shares for each calendar year since its first full year of operations. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

(total return)

2002
-15.69%

The table below shows how the annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the S&P 500 Index, a market value-weighted, unmanaged index of common stock prices for 500 selected stocks. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charges that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The S&P 500 Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

-------------------------------------------------------------------------------------
                                                                  Since Classes A, B
Average Annual Total Returns                                        and C Inception
(For the periods ended December 31, 2002)            Past 1 Year      (3/15/01)
-------------------------------------------------------------------------------------
Class A - Return Before Taxes                           -20.55%        -7.40%
    Return After Taxes on Distributions*                -20.55%        -7.40%
    Return After Taxes on Distributions &
      Sales of Fund Shares*                             -12.62%        -5.89%
Class B - Return Before Taxes                           -20.51%        -7.13%
Class C - Return Before Taxes                           -17.99%        -5.52%
-------------------------------------------------------------------------------------
S&P 500 Index**                                         -22.10%       -13.56%
-------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of the Index do not reflect the effect of taxes. The returns of the Index are calculated from 3/31/01.

For past expenses of Classes A, B and C shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

The bar chart shows the Fund's total returns for Class A shares for each of the last ten calendar years. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

                                                  (total return)
 1993         1994         1995       1996        1997        1998         1999        2000        2001        2002
11.29%       -7.05%       38.06%     20.88%       23.54%     33.40%       15.18%      -4.55%     -16.20%      -28.81%

The table below shows how the annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the S&P 500 Index, a market value-weighted, unmanaged index of common stock prices for 500 selected stocks. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charges that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The S&P 500 Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

---------------------------------------------------------------------------------------------------------------------------------
                                                                                                Since Class B   Since Class C
Average Annual Total Returns                                                                      Inception       Inception
(For the periods ended December 31, 2002)           Past 1 Year    Past 5 Years   Past 10 Years    (2/28/97)       (9/01/98)
---------------------------------------------------------------------------------------------------------------------------------
Class A - Return Before Taxes                          -32.93%        -3.79%          5.82%             --             --
    Return After Taxes on Distributions*               -32.93%        -6.21%          2.16%             --             --
    Return After Taxes on Distributions &
      Sales of Fund Shares*                            -20.22%        -3.14%          3.72%             --             --
Class B - Return Before Taxes                          -32.85%        -3.58%            --           -0.68%            --
Class C - Return Before Taxes                          -30.90%           --             --              --          -5.86%
---------------------------------------------------------------------------------------------------------------------------------
S&P 500 Index**                                        -22.10%        -0.59%          9.34%           3.25%         -2.04%
---------------------------------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of the Index do not reflect the effect of taxes. The returns of the Index are calculated from 9/30/98 for Class C shares. Class A shares commenced operations 11/27/68.

For past expenses of Classes A, B and C shares, see the section entitled "Fund Fees & Expenses."

Adviser and Subadviser Past Performance Information

Advisor - AEW (AEW Composite)

The returns shown below represent composite returns derived from performance data furnished by AEW relating to a group of private accounts managed by AEW Capital Management, L.P. (the "AEW Composite") with substantially similar investment objectives, strategies and policies as the CDC Nvest AEW Real Estate Fund. (AEW is a limited partnership that is a controlled affiliate of AEW Capital Management, L.P. and a subsidiary of CDC IXIS Asset Management North America.) Matthew Troxell, CDC Nvest AEW Real Estate Fund's portfolio manager, has been the lead manager for the accounts underlying the AEW Composite since July 1999.

The accounts underlying the AEW Composite have not been subject to the same types of expenses to which the CDC Nvest AEW Real Estate Fund is subject nor to the diversification requirements, investment limitations and other restrictions to which the Fund is subject under the Investment Company Act of 1940 and the Internal Revenue Code. The AEW Composite's performance results may have been less favorable had they been subject to these expenses or restrictions or to other restrictions applicable to investment companies under relevant laws. In addition, the CDC Nvest AEW Real Estate Fund may be subject to more frequent inflows and outflows of assets than the accounts underlying the AEW Composite, which may negatively impact performance. The information regarding the performance of the AEW Composite does not represent CDC Nvest AEW Real Estate Fund's performance. Such information should not be considered a prediction of the future performance of the Fund. CDC Nvest AEW Real Estate Fund commenced operations on September 1, 2000 and has the historical performance record shown on page 3.

The table below shows the average annual total return of the AEW Composite for the one-year period ended December 31, 2002 and for the period from July 1, 1999 through December 31, 2002. The AEW Composite returns are also compared against the Morgan Stanley REIT Index. The past performance data for the AEW Composite has been adjusted to reflect the aggregate management fees and other expenses actually paid by the accounts underlying the AEW Composite and assumes the reinvestment of all dividends and distributions. The fees and expenses paid by CDC Nvest AEW Real Estate Fund are higher than the aggregate fees and expenses paid by the accounts underlying the AEW Composite. The performance of the AEW Composite would have been lower than that shown below if it had been subject to the fees and expenses of CDC Nvest AEW Real Estate Fund.

--------------------------------------------------------------------------------
Average Annual Total Returns (1)
(for the period ending December 31, 2002)    1 Year      Since July 1, 1999
--------------------------------------------------------------------------------
AEW Composite                                 3.22%            10.23%
Morgan Stanley REIT Index                     3.64%             9.00%
--------------------------------------------------------------------------------

(1) The AEW Composite consists of all client accounts whose portfolios were managed by Matthew Troxell at AEW Capital Management, L.P. for the one-year period ending December 31, 2002 and for the period from July 1, 1999 until December 31, 2002 using investment policies and strategies substantially similar to those that are used to manage CDC Nvest AEW Real Estate Fund. The AEW Composite does not include the two closed-end funds managed by Mr. Troxell because the funds do not have investment policies and strategies that are substantially similar to those of the CDC Nvest AEW Real Estate Fund. Additionally, the funds' use of derivatives and leverage makes comparisons misleading. The average annual total return for the AEW Composite was calculated using a time-weighted rate of return which differs in part from the prescribed formula used by mutual funds to calculate their returns. The Morgan Stanley REIT Index is a market capitalization-weighted, unmanaged, total-return index of REITs that meet certain liquidity requirements. The index was designed to track the total-return performance of a broad group of REIT stocks assuming dividend reinvestment in the index. You cannot invest directly in an index. The Morgan Stanley REIT Index returns have not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments.

Subadviser - Harris Associates (Harris Large Cap Value Composite)

The returns shown below represent the returns derived from performance data furnished by Harris Associates relating to a group of accounts advised by Harris Associates with substantially similar investment objectives, strategies and policies as CDC Nvest Growth and Income Fund (the "Harris Large Cap Value Composite").

The accounts underlying the Harris Large Cap Value Composite have not been subject to the same types of expenses to which CDC Nvest Growth and Income Fund is subject nor to the diversification requirements, investment limitations and other restrictions to which the Fund is subject under the Investment Company Act of 1940 and the Internal Revenue Code. The Harris Large Cap Value Composite's performance results may have been less favorable had they been subject to these expenses or restrictions or to other restrictions applicable to investment companies under relevant laws. In addition, the Fund may be subject to more frequent inflows and outflows of assets than the accounts underlying the Harris Large Cap Value Composite, which may negatively impact performance. The information regarding the performance of the Harris Large Cap Value Composite does not represent CDC Nvest Growth and Income Fund's performance. Such information should not be considered a prediction of the future performance of the Fund. CDC Nvest Growth and Income Fund commenced operations on May 6, 1931, and has the historical performance record shown on page 8. Harris Associates did not become the CDC Nvest Growth and Income Fund's subadviser until July 1, 2002.

The table below shows the average annual total returns for the Harris Large Cap Value Composite for one year and since its inception. The Harris Large Cap Value Composite returns are also compared against the S&P 500 Index and the Russell 1000 Value Index. The past performance data for the Harris Large Cap Value Composite has been adjusted to reflect the aggregate management fees and other expenses actually paid by the accounts underlying the Harris Large Cap Value Composite and assumes the reinvestment of all dividends and distributions. The fees and expenses paid by CDC Nvest Growth and Income Fund are higher than the aggregate fees and expenses paid by the accounts underlying the Harris Large Cap Value Composite. The performance of the Harris Large Cap Value Composite would have been lower than that shown below if they had been subject to the fees and expenses of CDC Nvest Growth and Income Fund.

--------------------------------------------------------------------------------
Average Annual Total Returns (1)
(for the period ending December 31, 2002)      1 Year         Since Inception
--------------------------------------------------------------------------------
Harris Large Cap Value Composite               -14.92%             4.3%(2)
Russell 1000 Value Index                       -15.53%            -1.26%(2)
S&P 500 Index                                  -22.18%            -4.19%(2)
--------------------------------------------------------------------------------

(1) Average Annual Total Returns: The Harris Large Cap Value Composite consists of all client accounts whose portfolios are managed using investment policies and strategies substantially similar to those that are used to manage CDC Nvest Growth and Income Fund. The Russell 1000 Value Index is a subset of stocks from the larger Russell 1000 Index, selected for their greater value orientation. The S&P 500 Index is a commonly used benchmark of U.S. equity securities. The indices are unmanaged, have no operating costs, and are included in the table to facilitate your comparison of the Harris Large Cap Value Composite's performance to broad-based market indices. These comparative indices' returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

(2) As of inception of the Harris Large Cap Value Composite, July 1, 1998.

Subadviser - Harris Associates (Harris Concentrated Accounts)

The returns shown below represent the returns derived from performance data furnished by Harris Associates relating to a mutual fund (the "Oakmark Select Fund") and a group of accounts (the "Harris Associates Concentrated Composite" and, together with the Oakmark Select Fund, the "Harris Concentrated Accounts") advised by Harris Associates with substantially similar investment objectives, strategies and policies as CDC Nvest Select Fund.

The Harris Concentrated Accounts, and in particular, the accounts underlying the Harris Associates Concentrated Composite, have not been subject to the same types of expenses to which CDC Nvest Select Fund is subject. In addition, the accounts underlying the Harris Associates Concentrated Composite have not been subject to the diversification requirements, investment limitations and other restrictions to which CDC Nvest Select Fund is subject under the Investment Company Act of 1940 and the Internal Revenue Code. The Harris Concentrated Accounts' performance results may have been less favorable had they been subject to these expenses or restrictions or, in the case of the accounts underlying the Harris Associates Concentrated Composite, to other restrictions applicable to investment companies under relevant laws. In addition, CDC Nvest Select Fund may be subject to more frequent inflows and outflows of assets than the Harris Concentrated Accounts, which may negatively impact performance. The information regarding the performance of the Harris Concentrated Accounts does not represent CDC Nvest Select Fund's performance. Such information should not be considered a prediction of the future performance of the Fund. CDC Nvest Select Fund commenced operations on March 15, 2001, and has the historical performance record shown on page 15.

The table below shows the average annual total returns for the accounts underlying the Harris Associates Concentrated Composite and the Oakmark Select Fund for one year, five years and ten years, or since inception if shorter. The Harris Concentrated Accounts are also compared against the S&P 500 Index, the Morningstar Mid Cap Value Average and the Lipper Multicap Value Average. The past performance data for the Harris Concentrated Accounts has been adjusted to reflect the management fees and other expenses actually paid by the Harris Concentrated Accounts and assumes the reinvestment of all dividends and distributions. The fees and expenses paid by CDC Nvest Select Fund will be higher than the fees and expenses paid by the Harris Concentrated Accounts. The performance of the Harris Concentrated Accounts would have been lower than that shown below if they had been subject to the fees and expenses of CDC Nvest Select Fund.

----------------------------------------------------------------------------------------------------------------
Average Annual Total Returns (1)
(for the period ending December 31, 2002)          1 Year           5 Years        10 Years     Since Inception
----------------------------------------------------------------------------------------------------------------
Harris Associates Concentrated Composite           -14.41%           11.33%         15.88%          18.37%(2)
S&P 500 Index                                      -22.10%           -0.58%          9.35%          10.82%(2)
Morningstar Mid Cap Value Average                  -12.76%            3.83%         10.56%          12.45%(2)
Lipper Multicap Value Average                      -17.61%            0.64%          8.99%          10.58%(2)

Oakmark Select Fund                                -12.48%           13.05%            --           21.18%(3)
S&P 500 Index                                      -22.10%           -0.58%            --            5.18%(3)
Morningstar Mid Cap Value Average                  -12.76%            3.83%            --            8.00%(3)
Lipper Multicap Value Average                      -17.61%            0.64%            --            5.52%(3)
----------------------------------------------------------------------------------------------------------------

(1) Average Annual Total Returns: The Harris Concentrated Accounts consist of all client accounts whose portfolios are managed using investment policies and strategies substantially similar to those that will be used to manage CDC Nvest Select Fund. The S&P 500 Index is a commonly used benchmark of U.S. equity securities. The index is unmanaged, has no operating costs, and is included in the table to facilitate your comparison of the Harris Concentrated Accounts' performance to a broad-based market index. The S&P 500 Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments. The Morningstar Mid Cap Value and Lipper Multicap Value Averages are each an average of the total returns of mutual funds with an investment style similar to that of the CDC Nvest Select Fund as calculated by Morningstar, Inc. and Lipper, Inc. The Morningstar Mid Cap Value and Lipper Multicap Value Average returns have been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments but do not reflect any sales charges.

(2) As of inception of the Harris Associates Concentrated Composite, January 1, 1991.

(3) As of inception of the Oakmark Select Fund, November 1, 1996.

Fund Services

Financial Performance

The financial highlights tables are intended to help you understand each Fund's financial performance for the last five years (or, if shorter, the period of the Fund's operations). Certain information reflects financial results for a single Fund share. The total returns in the table represent the return that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, independent accountants, whose report, along with each Fund's financial statements, are incorporated by reference in the SAI, which is available without charge upon request.

For a share outstanding throughout each period.

                                             Income (loss)
                                       from investment operations:                         Less distributions:
                                   --------------------------------------  -----------------------------------------------------

                       Net asset
                         value,        Net     Net realized                  Dividends    Distributions
                       beginning   investment and unrealized   Total from      from          from net
                           of        income   gain (loss) on   investment  net investment    realized     Return of     Total
                       the period   (loss)(d)   investments    operations      income      capital gains   capital  distributions
                       ----------  ---------- --------------   ----------  -------------- --------------  --------- -------------
AEW REAL ESTATE FUND
    Class A
   01/31/2003            $11.37      $ 0.40      $(0.22)          $ 0.18      $(0.39)           $(0.16)     $   --     $(0.55)
   01/31/2002             10.49        0.55        0.82             1.37       (0.38)            (0.11)         --      (0.49)
   01/31/2001(h)          10.58        0.02       (0.11)(g)        (0.09)         --                --          --         --

    Class B
   01/31/2003             11.39        0.32       (0.24)            0.08       (0.31)            (0.16)         --      (0.47)
   01/31/2002             10.49        0.50        0.78             1.28       (0.27)            (0.11)         --      (0.38)
   01/31/2001(h)          10.58        0.02       (0.11)(g)        (0.09)         --                --          --         --

    Class C
   01/31/2003             11.40        0.32       (0.24)            0.08       (0.31)            (0.16)         --      (0.47)
   01/31/2002             10.49        0.50        0.79             1.29       (0.27)            (0.11)         --      (0.38)
   01/31/2001(h)          10.58        0.02       (0.11)(g)        (0.09)         --                --          --         --

CAPITAL GROWTH FUND
    Class A
   12/31/2002            $11.93      $(0.09)     $(3.26)          $(3.35)     $   --            $   --      $   --     $   --
   12/31/2001             15.04       (0.13)      (2.95)           (3.08)         --             (0.03)         --      (0.03)
   12/31/2000             22.86       (0.18)      (4.14)           (4.32)         --             (3.50)         --      (3.50)
   12/31/1999             20.67       (0.13)       5.05             4.92          --             (2.73)         --      (2.73)
   12/31/1998             19.95       (0.13)       5.18             5.05          --             (4.33)         --      (4.33)

    Class B
   12/31/2002             10.61       (0.15)      (2.90)           (3.05)         --                --          --         --
   12/31/2001             13.47       (0.20)      (2.63)           (2.83)         --             (0.03)         --      (0.03)
   12/31/2000             21.06       (0.32)      (3.77)           (4.09)         --             (3.50)         --      (3.50)
   12/31/1999             19.37       (0.27)       4.69             4.42          --             (2.73)         --      (2.73)
   12/31/1998             19.10       (0.27)       4.87             4.60          --             (4.33)         --      (4.33)

    Class C
   12/31/2002             10.60       (0.14)      (2.90)           (3.04)         --                --          --         --
   12/31/2001             13.47       (0.20)      (2.64)           (2.84)         --             (0.03)         --      (0.03)
   12/31/2000             21.06       (0.32)      (3.77)           (4.09)         --             (3.50)         --      (3.50)
   12/31/1999             19.37       (0.27)       4.69             4.42          --             (2.73)         --      (2.73)
   12/31/1998             19.11       (0.27)       4.86             4.59          --             (4.33)         --      (4.33)

(a) A sales charge for Class A and Class C shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations. Periods less than one year are not annualized.

(b) Computed on an annualized basis for periods less than one year.

(c) Certain Funds have entered into agreements with certain brokers to rebate a portion of brokerage commissions. The rebated commissions are used to reduce operating expenses of the Fund.

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

(e) Had certain expenses not been reduced during the periods shown, total returns would have been lower.

(f) The investment adviser agreed to reimburse a portion of the Fund's expenses during the period. Without this reimbursement, expense ratios would have been higher.

(g) The amount shown for a share outstanding does not correspond with the aggregate net gain/(loss) on investments for the period due to the timing of purchases and redemptions of Fund shares in relation to fluctuating values of the investments of the Fund.

(h) For the period December 29, 2000 (commencement of operations) through January 31, 2001.

                                                       Ratios to average net assets:
                                              --------------------------------------------

 Net asset                   Net assets,                       Expenses
  value,         Total         end of                        after expense   Net investment    Portfolio
  end of        return       the period       Expenses         reductions     income (loss)    turnover
the period     (%) (a)         (000)           (%) (b)         (%)(b)(c)         (%) (b)       rate (%)
----------     ---------     -----------      ---------      -------------   --------------    ---------
$   11.00        1.3(e)      $  13,307           1.50(f)          1.50(f)          3.47             35
    11.37       13.2(e)          5,522           1.50(f)          1.50(f)          4.92             36
    10.49       (0.9)(e)           820           1.50(f)          1.50(f)          2.30             12

    11.00        0.5(e)          8,401           2.25(f)          2.25(f)          2.72             35
    11.39       12.3(e)          3,718           2.25(f)          2.25(f)          4.43             36
    10.49       (0.9)(e)            87           2.25(f)          2.25(f)          2.14             12

    11.01        0.5(e)          3,288           2.25(f)          2.25(f)          2.72             35
    11.40       12.4(e)          1,061           2.25(f)          2.25(f)          4.52             36
    10.49       (0.9)(e)            44           2.25(f)          2.25(f)          1.79             12

$    8.58      (28.1)        $  58,729           1.75             1.71            (0.84)           103
    11.93      (20.5)           98,412           1.62             1.58            (0.99)            90
    15.04      (19.5)          143,425           1.40             1.37            (0.80)           118
    22.86       24.7           200,821           1.39             1.39            (0.61)           124
    20.67       29.0           175,511           1.46             1.46            (0.62)           136

     7.56      (28.8)           16,267           2.50             2.46            (1.59)           103
    10.61      (21.0)           35,409           2.37             2.33            (1.74)            90
    13.47      (20.1)           56,884           2.15             2.12            (1.55)           118
    21.06       23.8            74,774           2.14             2.14            (1.36)           124
    19.37       28.2            57,796           2.21             2.21            (1.37)           136

     7.56      (28.7)              847           2.50             2.46            (1.59)           103
    10.60      (21.1)            1,745           2.37             2.33            (1.74)            90
    13.47      (20.1)            2,487           2.15             2.12            (1.55)           118
    21.06       23.8             3,110           2.14             2.14            (1.36)           124
    19.37       28.1             1,609           2.21             2.21            (1.37)           136

Financial Performance

For a share outstanding throughout each period.

                                             Income (loss)
                                       from investment operations:                         Less distributions:
                                   --------------------------------------  -----------------------------------------------------

                       Net asset
                         value,        Net     Net realized                  Dividends    Distributions
                       beginning   investment and unrealized   Total from      from          from net
                           of        income   gain (loss) on   investment  net investment    realized     Return of     Total
                       the period    (loss)     investments    operations      income      capital gains   capital  distributions
                       ----------  ---------- --------------   ----------  -------------- --------------  --------- -------------
GROWTH AND INCOME FUND
    Class A
   12/31/2002            $11.78     $ 0.01(d)     $(2.37)       $(2.36)       $   --          $   --        $   --       $   --
   12/31/2001             13.79      (0.01)(d)     (2.00)        (2.01)           --              --            --           --
   12/31/2000             15.33       0.01(d)      (1.09)        (1.08)           --           (0.46)           --        (0.46)
   12/31/1999             16.57       0.08          1.40          1.48         (0.06)          (2.66)           --        (2.72)
   12/31/1998             15.35       0.04          3.29          3.33         (0.01)          (2.10)           --        (2.11)

    Class B
   12/31/2002             11.37      (0.07)(d)     (2.28)        (2.35)           --              --            --           --
   12/31/2001             13.40      (0.10)(d)     (1.93)        (2.03)           --              --            --           --
   12/31/2000             15.03      (0.10)(d)     (1.07)        (1.17)           --           (0.46)           --        (0.46)
   12/31/1999             16.37      (0.04)         1.36          1.32            --           (2.66)           --        (2.66)
   12/31/1998             15.28      (0.05)         3.24          3.19            --           (2.10)           --        (2.10)

    Class C
   12/31/2002             11.36      (0.07)(d)     (2.28)        (2.35)           --              --            --           --
   12/31/2001             13.38      (0.10)(d)     (1.92)        (2.02)           --              --            --           --
   12/31/2000             15.01      (0.10)(d)     (1.07)        (1.17)           --           (0.46)           --        (0.46)
   12/31/1999             16.35      (0.04)         1.36          1.32            --           (2.66)           --        (2.66)
   12/31/1998             15.28      (0.04)         3.21          3.17            --           (2.10)           --        (2.10)

INTERNATIONAL EQUITY
FUND
    Class A
   12/31/2002            $12.72     $(0.08)(d)    $(2.60)       $(2.68)       $   --          $   --        $   --       $   --
   12/31/2001             16.62      (0.10)(d)     (3.80)        (3.90)           --              --            --           --
   12/31/2000             25.39      (0.22)(d)     (6.90)        (7.12)        (0.17)          (1.48)           --        (1.65)
   12/31/1999             14.26      (0.03)(d)     12.31         12.28         (0.02)          (1.13)           --        (1.15)
   12/31/1998             14.06       0.15(d)       0.77          0.92         (0.44)          (0.28)           --        (0.72)

    Class B
   12/31/2002             12.14      (0.16)(d)     (2.47)        (2.63)           --              --            --           --
   12/31/2001             15.99      (0.20)(d)     (3.65)        (3.85)           --              --            --           --
   12/31/2000             24.71      (0.37)(d)     (6.70)        (7.07)        (0.17)          (1.48)           --        (1.65)
   12/31/1999             13.98      (0.15)(d)     12.01         11.86            --           (1.13)           --        (1.13)
   12/31/1998             13.71       0.04(d)       0.75          0.79         (0.24)          (0.28)           --        (0.52)

    Class C
   12/31/2002             12.18      (0.16)(d)     (2.53)        (2.69)           --              --            --           --
   12/31/2001             16.05      (0.20)(d)     (3.67)        (3.87)           --              --            --           --
   12/31/2000             24.78      (0.34)(d)     (6.74)        (7.08)        (0.17)          (1.48)           --        (1.65)
   12/31/1999             14.02      (0.15)(d)     12.04         11.89            --           (1.13)           --        (1.13)
   12/31/1998             13.74       0.05(d)       0.75          0.80         (0.24)          (0.28)           --        (0.52)

(a) A sales charge for Class A and Class C shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations.

(b) Had certain expenses not been reduced during the period, total returns would have been lower.

(c) Certain Funds have entered into agreements with certain brokers to rebate a portion of brokerage commissions. The rebated commissions are used to reduce operating expenses of the Fund.

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

(e) The investment adviser agreed to reimburse a portion of the Fund's expenses during the period. Without this reimbursement, expenses would have been higher.

                                                       Ratios to average net assets:
                                                --------------------------------------------

  Net asset                      Net assets,                    Expenses
   value,        Total             end of                     after expense   Net investment   Portfolio
   end of       return           the period      Expenses       reductions    income (loss)     turnover
 the period     (%) (a)            (000)            (%)           (%)(c)           (%)          rate (%)
------------    -------          -----------    ----------    -------------   --------------  -----------
   $ 9.42        (20.0)          $ 130,751          1.56            1.54            0.07           195
    11.78        (14.6)            211,138          1.46            1.41           (0.05)          154
    13.79         (7.3)            290,714          1.31            1.28            0.04           139
    15.33          9.5             375,676          1.21            1.21            0.48           133
    16.57         23.9             304,139          1.23            1.23            0.33           114

     9.02        (20.7)             71,436          2.31            2.29           (0.68)          195
    11.37        (15.1)            120,361          2.21            2.16           (0.80)          154
    13.40         (8.1)            165,767          2.06            2.03           (0.71)          139
    15.03          8.6             216,457          1.96            1.96           (0.27)          133
    16.37         23.1             153,369          1.98            1.98           (0.42)          114

     9.01        (20.7)              6,440          2.31            2.29           (0.68)          195
    11.36        (15.1)             10,553          2.21            2.16           (0.80)          154
    13.38         (8.1)             19,373          2.06            2.03           (0.71)          139
    15.01          8.6              26,983          1.96            1.96           (0.27)          133
    16.35         22.9              18,288          1.98            1.98           (0.42)          114

   $10.04        (21.1)          $  22,232          2.34            2.32           (0.67)          125
    12.72        (23.5)             33,773          2.14            2.14           (0.74)          172
    16.62        (28.6)             54,826          1.96            1.96           (1.01)          212
    25.39         87.6(b)           67,197          2.00(e)         2.00(e)        (0.15)          229
    14.26          6.7(b)           47,444          1.91(e)         1.91(e)         1.04           105

     9.51        (21.7)              8,950          3.09            3.07           (1.43)          125
    12.14        (24.1)             17,549          2.89            2.89           (1.48)          172
    15.99        (29.2)             29,013          2.71            2.71           (1.76)          212
    24.71         86.3(b)           29,045          2.75(e)         2.75(e)        (0.90)          229
    13.98          5.8(b)           19,797          2.66(e)         2.66(e)         0.29           105

     9.49        (22.1)              1,195          3.09            3.07           (1.43)          125
    12.18        (24.1)              2,183          2.89            2.89           (1.50)          172
    16.05        (29.1)              5,656          2.71            2.71           (1.76)          212
    24.78         86.2(b)            1,267          2.75(e)         2.75(e)        (0.90)          229
    14.02          5.9(b)              860          2.66(e)         2.66(e)         0.29           105

Financial Performance

For a share outstanding throughout each period.

                                             Income (loss)
                                       from investment operations:                         Less distributions:
                                   --------------------------------------  -----------------------------------------------------

                       Net asset
                         value,        Net     Net realized                  Dividends    Distributions
                       beginning   investment and unrealized   Total from      from          from net
                           of        income   gain (loss) on   investment  net investment    realized     Return of     Total
                       the period  (loss)(d)    investments    operations      income      capital gains   capital  distributions
                       ----------  ---------- --------------   ----------  -------------- --------------  --------- -------------
LARGE CAP GROWTH FUND*
    Class A
   12/31/2002            $13.84     $(0.04)       $(4.93)        $(4.97)       $   --          $   --        $   --     $   --
   12/31/2001(k)          12.39      (0.02)         1.47           1.45            --              --            --         --
    9/30/2001             21.67      (0.05)        (7.87)         (7.92)           --           (1.36)           --      (1.36)
    9/30/2000             15.41      (0.13)         6.39           6.26            --              --            --         --
    9/30/1999             10.32      (0.08)         5.17(h)        5.09          0.00(g)           --            --       0.00(g)
    9/30/1998(i)          10.00       0.00(g)       0.32           0.32            --              --            --         --

    Class B
   12/31/2002             13.62      (0.12)        (4.82)         (4.94)           --              --            --         --
   12/31/2001(k)          12.22      (0.04)         1.44           1.40            --              --            --         --
    9/30/2001             21.53      (0.17)        (7.78)         (7.95)           --           (1.36)           --      (1.36)
    9/30/2000(j)          16.21      (0.26)         5.58           5.32            --              --            --         --

    Class C
   12/31/2002             13.62      (0.12)        (4.82)         (4.94)           --              --            --         --
   12/31/2001(k)          12.22      (0.04)         1.44           1.40            --              --            --         --
    9/30/2001             21.54      (0.17)        (7.79)         (7.96)           --           (1.36)           --      (1.36)
    9/30/2000(j)          16.21      (0.26)         5.59           5.33            --              --            --         --

SELECT FUND
    Class A
   12/31/2002            $10.96     $(0.03)       $(1.69)        $(1.72)       $   --          $   --        $   --     $   --
   12/31/2001(j)          10.00      (0.01)         0.97           0.96            --              --            --         --

    Class B
   12/31/2002             10.90      (0.11)        (1.67)         (1.78)           --              --            --         --
   12/31/2001(j)          10.00      (0.07)         0.97           0.90            --              --            --         --

    Class C
   12/31/2002             10.90      (0.11)        (1.67)         (1.78)           --              --            --         --
   12/31/2001(l)          10.00      (0.07)         0.97           0.90            --              --            --         --

* The financial information for the periods through November 16, 2001 reflects the financial information for Kobrick Growth Fund's Class A shares, Class B shares and Class C shares which were reorganized into Class A shares, Class B shares and Class C shares of Large Cap Growth Fund, respectively, as of November 16, 2001. The predecessor Fund was advised by Kobrick Funds LLC until July 1, 2001 and had a September 30 fiscal year end.

(a) A sales charge for Class A and Class C shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations. Periods less than one year are not annualized.

(b) Computed on an annualized basis for periods less than one year.

(c) Certain Funds have entered into agreements with certain brokers to rebate a portion of brokerage commissions. The rebated commissions are used to reduce operating expenses of the Fund.

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

(e) Had certain expenses not been reduced during the periods shown, total returns would have been lower.

(f) The investment adviser agreed to reimburse a portion of the Fund's expenses during the period. Without this reimbursement, expense ratios would have been higher.

(g) Amount rounds to less than $0.01 per share.

                                                       Ratios to average net assets:
                                                --------------------------------------------

  Net asset                      Net assets,                    Expenses
   value,        Total             end of                     after expense   Net investment   Portfolio
   end of       return           the period      Expenses       reductions    income (loss)     turnover
 the period   (%) (a) (e)           (000)        (%)(b)(f)     (%)(b)(c)(f)      (%)(b)         rate (%)
------------  -----------        -----------    ----------    -------------   --------------  -----------
   $ 8.87        (35.9)          $  11,340          1.40            1.37           (0.37)           44
    13.84         11.7              27,873          1.40            1.36           (0.56)           27
    12.39        (38.5)             27,668          1.40            1.19           (0.27)          724
    21.67         40.6             103,087          1.40            1.29           (0.62)          826
    15.41         49.4              46,827          1.40            1.40           (0.55)          632
    10.32          3.2               1,054          1.40            1.40            0.32            11

     8.68        (36.3)             11,758          2.15            2.12           (1.12)           44
    13.62         11.5              24,087          2.15            2.11           (1.31)           27
    12.22        (38.9)             22,811          2.15            1.98           (1.04)          724
    21.53         32.8              35,680          2.15            1.99           (1.30)          826

     8.68        (36.3)              1,157          2.15            2.12           (1.12)           44
    13.62         11.5               3,007          2.15            2.11           (1.33)           27
    12.22        (38.9)              3,419          2.15            1.98           (1.04)          724
    21.54         32.9               6,546          2.15            2.01           (1.32)          826

   $ 9.24        (15.7)          $  68,660          1.70            1.69           (0.35)           12
    10.96          9.6              45,987          1.70            1.63           (0.08)           10

     9.12        (16.3)             85,794          2.45            2.44           (1.10)           12
    10.90          9.0              62,671          2.45            2.39           (0.83)           10

     9.12        (16.3)             86,269          2.45            2.44           (1.10)           12
    10.90          9.0              34,406          2.45            2.39           (0.86)           10

(h) Amount shown for a share outstanding does not correspond with the net realized and unrealized gain (loss) on investments due to the timing of sales and repurchases of Fund shares in relation to fluctuating market values of the investments of the Fund.

(i) For the period September 1, 1998 (inception) through September 30, 1998.

(j) For the period October 29, 1999 (inception) through September 30, 2000.

(k) For the three months ended December 31, 2001.

(l) For the period March 15, 2001 (inception) through December 31, 2001.

Financial Performance

For a share outstanding throughout each period.

                                             Income (loss)
                                       from investment operations:                         Less distributions:
                                   --------------------------------------  -----------------------------------------------------

                       Net asset
                         value,        Net     Net realized                  Dividends    Distributions
                       beginning   investment and unrealized   Total from      from          from net
                           of        income   gain (loss) on   investment  net investment    realized     Return of     Total
                       the period    (loss)     investments    operations      income      capital gains   capital  distributions
                       ----------  ---------- --------------   ----------  -------------- --------------  --------- -------------
TARGETED EQUITY FUND
    Class A
   12/31/2002            $ 7.81     $(0.06)(d)    $(2.19)         $(2.25)     $   --          $   --        $   --     $   --
   12/31/2001              9.36      (0.03)(d)     (1.49)          (1.52)      (0.03)             --            --      (0.03)
   12/31/2000             11.00       0.09(d)      (0.60)          (0.51)      (0.06)          (1.07)           --      (1.13)
   12/31/1999             11.36       0.02          1.57            1.59          --           (1.95)           --      (1.95)
   12/31/1998             10.41       0.08(d)       3.00            3.08       (0.10)          (1.67)        (0.36)     (2.13)

    Class B
   12/31/2002              7.47      (0.11)(d)     (2.08)          (2.19)         --              --            --         --
   12/31/2001              9.02      (0.09)(d)     (1.43)          (1.52)      (0.03)             --            --      (0.03)
   12/31/2000             10.67       0.01(d)      (0.58)          (0.57)      (0.01)          (1.07)           --      (1.08)
   12/31/1999             11.15      (0.05)         1.52            1.47          --           (1.95)           --      (1.95)
   12/31/1998             10.32       0.00(d)(e)    2.95            2.95       (0.06)          (1.67)        (0.39)     (2.12)

    Class C
   12/31/2002              7.47      (0.11)(d)     (2.09)          (2.20)         --              --            --         --
   12/31/2001              9.02      (0.09)(d)     (1.43)          (1.52)      (0.03)             --            --      (0.03)
   12/31/2000             10.67       0.01(d)      (0.58)          (0.57)      (0.01)          (1.07)           --      (1.08)
   12/31/1999             11.15      (0.05)         1.52            1.47          --           (1.95)           --      (1.95)
   12/31/1998(f)          11.18       0.00(d)(e)    2.09            2.09       (0.06)          (1.67)        (0.39)     (2.12)

(a) A sales charge for Class A and Class C shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations. Periods less than one year are not annualized.

(b) Computed on an annualized basis for periods less than one year.

(c) The Fund has entered into agreements with certain brokers to rebate a portion of brokerage commissions. The rebated commissions are used to reduce operating expenses of the Fund.

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

(e) Amount rounds to less than $0.01 per share.

(f) For the period September 1, 1998 (inception) through December 31, 1998.

                                                      Ratios to average net assets:
                                               --------------------------------------------

  Net asset                     Net assets,                    Expenses
   value,        Total            end of                     after expense  Net investment  Portfolio
   end of       return          the period      Expenses      reductions     income (loss)   turnover
 the period     (%) (a)            (000)        (%) (b)       (%) (b) (c)       (%) (b)      rate (%)
------------    -------         -----------   -----------    -------------  --------------  -----------
   $ 5.56       (28.8)          $  602,989        1.47            1.39           (0.86)          223
     7.81        (16.2)          1,012,161        1.38            1.35           (0.39)          243
     9.36         (4.6)          1,413,685        1.18            1.16            0.83           266
    11.00         15.2           1,871,138        1.12            1.12            0.23           206
    11.36         33.4           1,825,107        1.12            1.12            0.74           202

     5.28        (29.3)             45,633        2.23            2.15           (1.62)          223
     7.47        (16.8)             78,744        2.13            2.10           (1.14)          243
     9.02         (5.2)            107,594        1.93            1.91            0.08           266
    10.67         14.4             135,786        1.87            1.87           (0.52)          206
    11.15         32.4              75,444        1.87            1.87           (0.01)          202

     5.27        (29.5)              2,187        2.23            2.15           (1.62)          223
     7.47        (16.8)              4,162        2.13            2.10           (1.14)          243
     9.02         (5.2)              5,830        1.93            1.91            0.08           266
    10.67         14.4               8,754        1.87            1.87           (0.52)          206
    11.15         22.2               2,030        1.87            1.87           (0.01)          202

Glossary of Terms

American Depositary Receipts (ADRs) -- Instruments issued by U.S. banks that represent an interest in equity securities held by arrangement with the bank. These instruments can be either "sponsored" or "unsponsored." Sponsored depositary receipts are issued by banks in cooperation with the issuer of the underlying equity securities. Unsponsored depositary receipts are arranged without involvement by the issuer of the underlying equity securities.

Bid price -- The price a prospective buyer is ready to pay. This term is used by traders who maintain firm bid and offer prices in a given security by standing ready to buy or sell security units at publicly quoted prices.

Bottom-up analysis -- The analysis of potential performance of individual stocks before considering the impact of economic trends. Such companies may be identified from research reports, stock screens or personal knowledge of the products and services.

Capital gain distributions -- Payments to a Fund's shareholders of net profits earned from selling securities in a Fund's portfolio. Capital gain distributions are usually paid once a year.

Credit rating -- Independent evaluation of a bond's creditworthiness. This measurement is usually calculated through an index compiled by companies such as Standard & Poor's Rating Service, Inc. ("S&P"), Moody's Investors Service, Inc. ("Moody's"), or Fitch Investors Services, Inc. ("Fitch"). Bonds with a credit rating of BBB or higher by S&P or Fitch, or Baa or higher by Moody's, are generally considered investment grade.

Debt-to-Total Capital Ratio -- Total debt (current and long-term) divided by total capital (debt and equity). This ratio provides information regarding the extent of a company's reliance on debt financing. A high ratio indicates a high degree of financial leverage and a high degree of risk.

Derivative -- A financial instrument whose value and performance are based on the value and performance of another security or financial instrument.

Discounted price -- The difference between a bond's current market price and its face or redemption value.

Diversification -- The strategy of investing in a wide range of securities representing different market sectors to reduce the risk if an individual company or one sector suffers losses.

Dividend yield -- The current or estimated annual dividend divided by the market price per share of a security.

Duration -- An estimate of how much a bond's price fluctuates with changes in comparable interest rates.

Earnings growth -- A pattern of increasing rates of growth in earnings per share from one period to another, which usually causes a stock's price to rise.

European Depositary Receipts (EDRs) -- Instruments issued by European banks that represent an interest in equity securities held by arrangement with the bank. Sponsored depositary receipts are issued by banks in cooperation with the issuer of the underlying equity securities. Unsponsored depositary receipts are arranged without involvement by the issuer of the underlying equity securities.

FFO Multiple - The price per share of a REIT divided by its Funds from Operations (FFO). The FFO of a REIT is the measure of its operating performance showing its net income plus depreciation of real estate and excluding gains or losses from sales of property or debt restructuring.

Fundamental analysis -- An analysis of the balance sheet and income statements of a company in order to forecast its future stock price movements. Fundamental analysis considers records of assets, earnings, sales, products, management and markets in predicting future trends in these indicators of a company's success or failure. By appraising a company's prospects, analysts using such an approach assess whether a particular stock or group of stocks is undervalued or overvalued at its current market price.

Global Depositary Receipts (GDRs) -- Instruments issued by companies and offered in many markets around the world that represent an interest in equity securities held by arrangement with the bank. Sponsored depositary receipts are issued by banks in cooperation with the issuer of the underlying equity securities. Unsponsored depositary receipts are arranged without involvement by the issuer of the underlying equity securities.

Growth investing -- An investment style that emphasizes companies with strong earnings growth. Growth investing is generally considered more aggressive than "value" investing.

Income distributions -- Payments to a Fund's shareholders resulting from the net interest or dividend income earned by a Fund's portfolio.

Inflation -- A general increase in prices coinciding with a fall in the real value of money, as measured by the Consumer Price Index.

Interest rate -- Rate of interest charged for the use of money, usually expressed at an annual rate.

Market capitalization -- Market price multiplied by number of shares outstanding. Large capitalization companies generally have over $5 billion in market capitalization; medium cap companies between $1.5 billion and $5 billion; and small cap companies less than $1.5 billion. These capitalization figures may vary depending upon the index being used and/or the guidelines used by the portfolio manager.

Maturity -- The final date on which the payment of a debt instrument (e.g., bonds, notes, repurchase agreements) becomes due and payable. Short-term bonds generally have maturities of up to 5 years; intermediate-term bonds between 5 and 15 years; and long-term bonds over 15 years.

Net assets -- A Fund's assets minus its liabilities. With respect to the Funds that have a policy to invest 80% of their net assets in particular kinds of securities, "net assets" as used in such policies means net assets plus borrowings made for investment purposes.

Net asset value (NAV) per share -- The market value of one share of a Fund on any given day without taking into account any front-end sales charge or CDSC. It is determined by dividing a Fund's total net assets by the number of shares outstanding.

Price-to-book value ratio -- Current market price of a stock divided by its book value. Some firms use the inverse ratio for this calculation (i.e., book-to-price ratio).

Price-to-earnings ratio -- Current market price of a stock divided by its earnings per share. Also known as the "multiple," the price-to-earnings ratio gives investors an idea of how much they are paying for a company's earning power and is a useful tool for evaluating the costs of different securities. The ratio may be calculated using "trailing" earnings or estimates of future (or "forward") earnings. Some firms use the inverse ratio for this calculation (i.e., earnings-to-price ratio).

Qualitative analysis -- An analysis of the qualities possessed by a company, including its management, products and competitive positions, to help determine if the company can execute its strategies.

Return on equity -- The amount, expressed as a percentage, earned on a company's common stock investment for a given period. It is calculated by dividing common stock equity (net worth) at the beginning of the accounting period into net income for the period after preferred stock dividends but before common stock dividends. This tells common shareholders how effectively their money is being employed.

Rule 144A securities -- Rule 144A securities are privately offered securities that can be resold only to certain qualified institutional buyers. Rule 144A securities are treated as illiquid, unless a manager has determined, under guidelines established by a Fund's trustees, that a particular issue of Rule 144A securities is liquid.

Target price -- Price that an investor is hoping a stock he or she has just bought will rise to within a specified period of time. An investor may buy XYZ at $20, with a target price of $40 in one year's time, for instance.

Technical analysis -- The research into the demand and supply for securities, options, mutual funds and commodities based on trading volume and price studies. Technical analysis uses charts or computer programs to identify and project price trends in a market, security, mutual fund or futures contract.

Top-down approach -- The method in which an investor first looks at trends in the general economy, and next selects industries and then companies that the investor believes should benefit from those trends.

Total return -- The change in value of an investment in a Fund over a specific time period expressed as a percentage. Total returns assume all distributions are reinvested in additional shares of a Fund.

Value investing -- A relatively conservative investment approach that focuses on companies that may be temporarily out of favor or whose earnings or assets are not fully reflected in their stock prices. Value stocks will tend to have a lower price-to-earnings ratio than growth stocks.

Volatility -- The general variability of a portfolio's value resulting from price fluctuations of its investments. In most cases, the more diversified a portfolio is, the less volatile it will be.

Yield -- The rate at which a Fund earns income, expressed as a percentage. Mutual fund yield calculations are standardized, based upon a formula developed by the SEC.

Yield-to-maturity -- The concept used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond, is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield (the interest rate on a debt security the issuer promises to pay to the holder until maturity, expressed as an annual percentage of face value) and the time between interest payments.

Notes

Notes

If you would like more information about the Funds, the following documents are available free upon request:

Annual and Semiannual Reports -- Provide additional information about each Fund's investments. Each report includes a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal year.

Statement of Additional Information (SAI) -- Provides more detailed information about the Funds and their investment limitations and policies, has been filed with the SEC and is incorporated into this Prospectus by reference.

To order a free copy of the Funds' annual or semiannual report or their SAI, contact your financial representative, or the Funds at:

CDC IXIS Asset Management Distributors, L.P., 399 Boylston Street, Boston, MA 02116 Telephone: 800-225-5478 Internet: www.cdcnvestfunds.com

Important Notice Regarding Delivery of Shareholder Documents:

In our continuing effort to reduce your fund's expenses and the amount of mail that you receive from us, we combine mailings of prospectuses, annual or semiannual reports and proxy statements to your household. If more than one family member in your household owns the same fund or funds described in a single prospectus, report or proxy statement, you will receive one mailing unless you request otherwise. Additional copies of our prospectuses, reports or proxy statements may be obtained at anytime by calling 800-225-5478. If you are currently receiving multiple mailings to your household and would like to receive only one mailing or if you wish to receive separate mailings for each member of your household in the future, please call us at the telephone number listed above and we will resume separate mailings within 30 days of your request.

Your financial representative or CDC Nvest Funds will also be happy to answer your questions or to provide any additional information that you may require.

Information about the Funds, including their reports and SAI, can be reviewed and copied at the Public Reference Room of the SEC in Washington, D.C. Text-only copies of the Funds' reports and SAI are available free from the SEC's Internet site at: www.sec.gov. Copies of this information may also be obtained, after paying a duplicating fee, by electronic request at the following E-mail address:
publicinfo@sec.gov, or by writing the SEC's Public Reference Section, Washington, D.C. 20549-0102.

Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-202-942-8090.

CDC IXIS Asset Management Distributors, L.P., and other firms selling shares of CDC Nvest Funds are members of the National Association of Securities Dealers, Inc. (NASD).

(Investment Company Act File No. 811-4323)

(Investment Company Act File No. 811-242)

(Investment Company Act File No. 811-7345)

(Investment Company Act File No. 811-09945)

As a service to investors, the NASD has asked that we inform you of the availability of a brochure on its Public Disclosure Program. The program provides access to information aboutsecurities firms and their representatives.
Investors may obtain a copy by contacting the NASD at 800-289-9999 or by visiting its Web site at www.NASDR.com.

What's Inside

Goals, Strategies & Risks..Page 2

Fund Fees & Expenses......Page 12

Management Team...........Page 15

Fund Services.............Page 21
                                           CDC Nvest Equity Funds
Financial Performance.....Page 30              Class Y Shares

[LOGO] AEW                      CDC Nvest AEW Real Estate Fund
                                AEW Management and Advisors, L.P.
Capital Growth
Management                      CDC Nvest Growth and Income Fund
                                Harris Associates L.P.
HARRIS-ASSOCIATES L.P. [LOGO]
                                CDC Nvest International Equity Fund
[LOGO] LOOMIS-SAYLES A          Loomis, Sayles & Company, L.P.
COMPANY, L.P.
                                CDC Nvest Large Cap Growth Fund
        [LOGO]                  Vaughan, Nelson, Scarborough & Mc Cullough, L.P.
    Vaughan, Nelson
Scarborough & McCullough        CDC Nvest Targeted Equity Fund
                                Capital Growth Management Limited Partnership


                                                                      Prospectus
                                                                     May 1, 2003

The Securities and Exchange Commission has not approved any Fund's shares or determined whether this Prospectus is accurate or complete. Anyone who tells you otherwise is committing a crime.

For general information on the Funds or any of their services and for assistance in opening an account, contact your financial representative or call CDC Nvest Funds.

CDC Nvest Funds
399 Boylston Street, Boston, Massachusetts 02116 800-225-5478
www.cdcnvestfunds.com

Table of Contents

Goals, Strategies & Risks

CDC Nvest AEW Real Estate Fund ............................................    2
CDC Nvest Growth and Income Fund ..........................................    4
CDC Nvest International Equity Fund .......................................    6
CDC Nvest Large Cap Growth Fund ...........................................    8
CDC Nvest Targeted Equity Fund ............................................   10

Fund Fees & Expenses

Fund Fees & Expenses ......................................................   12

More About Risk

More About Risk ...........................................................   14

Management Team

Meet the Funds' Investment Advisers and Subadvisers .......................   15
Meet the Funds' Portfolio Managers ........................................   17
Adviser and Subadviser Past Performance Information .......................   19

Fund Services

It's Easy to Open an Account ..............................................   21
Buying Shares .............................................................   22
Selling Shares ............................................................   23
Selling Shares in Writing .................................................   24
Exchanging Shares .........................................................   24
Restrictions on Buying, Selling and Exchanging Shares .....................   25
How Fund Shares Are Priced ................................................   26
Dividends and Distributions ...............................................   27
Tax Consequences ..........................................................   27
Compensation to Securities Dealers ........................................   28

Financial Performance

Financial Performance .....................................................   30
Glossary of Terms
Glossary of Terms .........................................................   32

If you have any questions about any of the terms used in this Prospectus, please refer to the "Glossary of Terms."

To learn more about the possible risks of investing in the Funds, please refer to the section entitled "More About Risk." This section details the risks of practices in which the Funds may engage. Please read this section carefully before you invest.

Fund shares are not bank deposits and are not guaranteed, endorsed or insured by the Federal Deposit Insurance Corporation or any other government agency, and are subject to investment risks, including possible loss of the principal invested.

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on July 1, 2002. Therefore, the chart and table reflect results achieved by different subadvisers under different investment strategies. The Fund's performance may have been different under its current advisory arrangements and investment strategies.

The bar chart shows the Fund's total returns for Class Y shares for each calendar year since its first full year of operations.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

              (total return)
  1999      2000       2001         2002
  9.77%    -6.97%     13.99%       19.61%
-------------------------------------------

The table below shows the Fund's average annual total returns (before and after taxes) for the one-year, five-year and ten-year periods (or since inception if shorter) compared to those of the Russell 1000 Value Index, an unmanaged index measuring the performance of those Russell 1000 companies selected for their greater value orientation. You may not invest directly in an index. The Fund's total returns reflect the expenses of the Fund's Class Y shares. Class Y total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Russell 1000 Value Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

-------------------------------------------------------------------------------
                                                                   Since Class
Average Annual Total returns                                        Inception
(For the periods ended December 31, 2002)     Past 1 Year          (11/18/98)
-------------------------------------------------------------------------------
Class Y - Return Before Taxes                   -19.61%              -6.36%
    Return After Taxes on Distributions*        -19.61%              -7.62%
    Return After Taxes on Distributions &
      Sales of Fund Shares*                     -12.04%              -5.02%
-------------------------------------------------------------------------------
Russell 1000 Value Index**+                     -15.52%              -1.32%
S&P 500 Index**                                 -22.10%              -5.88%
-------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of each Index do not reflect the effect of taxes. The returns of each Index are calculated from 11/30/98.

+ The Russell 1000 Value Index replaced the S&P 500 Index as the Fund's comparative index because CDC IXIS Advisers believes it is more representative of the types of stocks in which the Fund can invest.

For past expenses of Class Y shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on February 14, 1997. This chart and table reflect results achieved by the previous subadviser under different investment strategies for periods prior to February 14, 1997. The Fund's performance may have been different under its current advisory arrangements and investment strategies.

The bar chart shows the Fund's total returns for Class Y shares for each calendar year since its first full year of operations.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

-------------------------------------------------------------------------------------------------------------
                                                    (total return)
   1994         1995         1996        1997        1998        1999        2000        2001        2002
   8.93%        6.56%        3.95%      -6.74%      7.29%       88.61%      -28.16      -22.97%     -20.44%
-------------------------------------------------------------------------------------------------------------

/\ Highest Quarterly Return:
-- Fourth Quarter 1999, up 66.97%

-- Lowest Quarterly Return:
\/ Third Quarter 2002, down 19.53%

The table below shows the Fund's average annual total returns (before and after taxes) for the one-year, five-year and ten-year periods (or since inception if shorter) compared to those of the Morgan Stanley Capital International Europe, Australasia and Far East Index (" MSCI EAFE"), an unmanaged index of the performance of companies representing stock markets in Europe, Australia, New Zealand and the Far East. You may not invest directly in an index. The Fund's total returns reflect the expenses of the Fund's Class Y shares. Class Y total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The MSCI EAFE returns have not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments.

-----------------------------------------------------------------------------------------------------------
                                                                                               Since Class
Average Annual Total Returns                                                                    Inception
(for the periods ended December 31, 2002)          Past 1 Year           Past 5 Years            (9/9/93)
-----------------------------------------------------------------------------------------------------------
Class Y - Return Before Taxes                        -20.44%                -2.29%                 0.10%
    Return After Taxes on Distributions*             -20.44%                -3.61%                -1.19%
    Return After Taxes on Distributions &
      Sales of Fund Shares*                          -12.55%                -2.03%                -0.18%
-----------------------------------------------------------------------------------------------------------
MSCI EAFE**                                          -15.66%                -2.61%                 1.59%
-----------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of the Index do not reflect the effect of taxes. The returns of the Index are calculated as of 9/30/93.

For past expenses of Class Y shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The performance results below, prior to July 1, 2001, reflect the results achieved by the Fund's predecessor under different advisory arrangements and different investment strategies. The Fund's current subadviser assumed that function on July 1, 2001. The Fund's performance may have been different had its current arrangements been in place during the periods shown.

The bar chart shows the Fund's total returns for Class Y shares for each calendar year since the first full year of operations of the Fund's predecessor.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

---------------------------------
          (total return)+
  2000         2001       2002
 -8.87%      -22.65%     -35.61%
---------------------------------

The table below shows the Fund's predecessor's average annual total returns (before and after taxes) for the one-year, five-year and ten-year periods (or since inception, if shorter) compared to those of the Russell 1000 Growth Index, an unmanaged index measuring the performance of those Russell 1000 companies selected for their greater growth orientation. You may not invest directly in an index. The Fund's total returns reflect the expenses of the Fund's Class Y shares. Class Y total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Russell 1000 Growth Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

-------------------------------------------------------------------------------
                                                                  Since Class
Average Annual Total Returns+                                       Inception
(for the periods ended December 31, 2002)          Past 1 Year     (10/29/99)
-------------------------------------------------------------------------------
Class Y - Return Before Taxes                        -35.61%         -15.07%
    Return After Taxes on Distributions*             -35.61%         -15.83%
    Return After Taxes on Distributions &
      Sales of Fund Shares*                          -21.86%         -11.72%
-------------------------------------------------------------------------------
Russell 1000 Growth Index**                          -27.88%         -18.76%
-------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of the Index do not reflect the effect of taxes. The returns of the Index are calculated from October 31, 1999.

+ The returns shown above reflect the results of the Kobrick Growth Fund through November 16, 2001, whose assets and liabilities were reorganized into the Fund on November 16, 2001.

For past expenses of Class Y shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

The bar chart shows the Fund's total returns for Class Y shares for each calendar year since its first full year of operations.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

          (total return)
  2000         2001       2002
 -4.23%      -15.86%     -28.28%
---------------------------------

The table below shows the Fund's average annual total returns (before and after taxes) for the one-year, five-year and ten-year periods (or since inception if shorter) compared to those of the S&P 500 Index, a market value-weighted, unmanaged index of common stock prices for 500 selected stocks. You may not invest directly in an index. The Fund's total returns reflect the expenses of the Fund's Class Y shares. Class Y total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The S&P 500 Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

--------------------------------------------------------------------------------
                                                                   Since Class
Average Annual Total Returns                                        Inception
(for the period ended December 31, 2002)           Past 1 Year      (6/30/99)
--------------------------------------------------------------------------------
Class Y - Return Before Taxes                        -28.28%         -12.20%
    Return After Taxes on Distributions*             -28.28%         -14.35%
    Return After Taxes on Distributions &
      Sales of Fund Shares*                          -17.36%          -9.54%
--------------------------------------------------------------------------------
S&P 500 Index**                                      -22.10%         -10.29%
--------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of the Index do not reflect the effect of taxes.

For past expenses of Class Y shares, see the section entitled "Fund Fees & Expenses."

Adviser and Subadviser Past Performance Information

Advisor - AEW (AEW Composite)

The returns shown below represent composite returns derived from performance data furnished by AEW relating to a group of private accounts managed by AEW Capital Management, L.P. (the "AEW Composite") with substantially similar investment objectives, strategies and policies as the CDC Nvest AEW Real Estate Fund. (AEW is a limited partnership that is a controlled affiliate of AEW Capital Management, L.P. and a subsidiary of CDC IXIS Asset Management North America.) Matthew Troxell, CDC Nvest AEW Real Estate Fund's portfolio manager, has been the lead manager for the accounts underlying the AEW Composite since July 1999.

The accounts underlying the AEW Composite have not been subject to the same types of expenses to which the CDC Nvest AEW Real Estate Fund is subject nor to the diversification requirements, investment limitations and other restrictions to which the Fund is subject under the Investment Company Act of 1940 and the Internal Revenue Code. The AEW Composite's performance results may have been less favorable had they been subject to these expenses or restrictions or to other restrictions applicable to investment companies under relevant laws. In addition, the CDC Nvest AEW Real Estate Fund may be subject to more frequent inflows and outflows of assets than the accounts underlying the AEW Composite, which may negatively impact performance. The information regarding the performance of the AEW Composite does not represent CDC Nvest AEW Real Estate Fund's performance. Such information should not be considered a prediction of the future performance of the Fund. CDC Nvest AEW Real Estate Fund commenced operations on September 1, 2000 and has the historical performance record shown on page 3.

The table below shows the average annual total return of the AEW Composite for the one-year period ended December 31, 2002 and for the period from July 1, 1999 through December 31, 2002. The AEW Composite returns are also compared against the Morgan Stanley REIT Index. The past performance data for the AEW Composite has been adjusted to reflect the aggregate management fees and other expenses actually paid by the accounts underlying the AEW Composite and assumes the reinvestment of all dividends and distributions. The fees and expenses paid by CDC Nvest AEW Real Estate Fund are higher than the aggregate fees and expenses paid by the accounts underlying the AEW Composite. The performance of the AEW Composite would have been lower than that shown below if it had been subject to the fees and expenses of CDC Nvest AEW Real Estate Fund.

--------------------------------------------------------------------------------
   Average Annual Total Returns (1)
--------------------------------------------------------------------------------
   (for the period ending December 31, 2002)       1 Year    Since July 1, 1999
--------------------------------------------------------------------------------
  AEW Composite                                     3.22%           10.23%
  Morgan Stanley REIT Index                         3.64%            9.00%
--------------------------------------------------------------------------------

(1) The AEW Composite consists of all client accounts whose portfolios were managed by Matthew Troxell at AEW Capital Management, L.P. for the one-year period ending December 31, 2002 and for the period from July 1, 1999 until December 31, 2002 using investment policies and strategies substantially similar to those that are used to manage CDC Nvest AEW Real Estate Fund. The AEW Composite does not include the two closed-end funds managed by Mr. Troxell because the funds do not have investment policies and strategies that are substantially similar to those of the CDC Nvest AEW Real Estate Fund. Additionally, the funds' use of derivatives and leverage makes comparisons misleading. The average annual total return for the AEW Composite was calculated using a time-weighted rate of return which differs in part from the prescribed formula used by mutual funds to calculate their returns. The Morgan Stanley REIT Index is a market capitalization-weighted, unmanaged, total-return index of REITs that meet certain liquidity requirements. The index was designed to track the total-return performance of a broad group of REIT stocks assuming dividend reinvestment in the index. You cannot invest directly in an index. The Morgan Stanley REIT Index returns have not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments.

Management Team

Adviser and Subadviser Past Performance Information

Subadviser - Harris Associates (Harris Large Cap Value Composite)

The returns shown below represent the returns derived from performance data furnished by Harris Associates relating to a group of accounts advised by Harris Associates with substantially similar investment objectives, strategies and policies as CDC Nvest Growth and Income Fund (the "Harris Large Cap Value Composite").

The accounts underlying the Harris Large Cap Value Composite have not been subject to the same types of expenses to which CDC Nvest Growth and Income Fund is subject nor to the diversification requirements, investment limitations and other restrictions to which the Fund is subject under the Investment Company Act of 1940 and the Internal Revenue Code. The Harris Large Cap Value Composite's performance results may have been less favorable had they been subject to these expenses or restrictions or to other restrictions applicable to investment companies under relevant laws. In addition, the Fund may be subject to more frequent inflows and outflows of assets than the accounts underlying the Harris Large Cap Value Composite, which may negatively impact performance. The information regarding the performance of the Harris Large Cap Value Composite does not represent CDC Nvest Growth and Income Fund's performance. Such information should not be considered a prediction of the future performance of the Fund. CDC Nvest Growth and Income Fund commenced operations on May 6, 1931, and has the historical performance record shown on page 5. Harris Associates did not become the CDC Nvest Growth and Income Fund's subadviser until July 1, 2002.

The table below shows the average annual total returns for the Harris Large Cap Value Composite for one year and since its inception. The Harris Large Cap Value Composite returns are also compared against the S&P 500 Index and the Russell 1000 Value Index. The past performance data for the Harris Large Cap Value Composite has been adjusted to reflect the aggregate management fees and other expenses actually paid by the accounts underlying the Harris Large Cap Value Composite and assumes the reinvestment of all dividends and distributions. The fees and expenses paid by CDC Nvest Growth and Income Fund are higher than the aggregate fees and expenses paid by the accounts underlying the Harris Large Cap Value Composite. The performance of the Harris Large Cap Value Composite would have been lower than that shown below if they had been subject to the fees and expenses of CDC Nvest Growth and Income Fund.

--------------------------------------------------------------------------------
   Average Annual Total Returns (1)
   (for the period ending December 31, 2002)     1 Year       Since Inception
--------------------------------------------------------------------------------
  Harris Large Cap Value Composite               -14.92%           4.30%(2)
  Russell 1000 Value Index                       -15.53%          -1.26%(2)
  S&P 500 Index                                  -22.18%          -4.19%(2)
--------------------------------------------------------------------------------

(1) Average Annual Total Returns: The Harris Large Cap Value Composite consists of all client accounts whose portfolios are managed using investment policies and strategies substantially similar to those that are used to manage CDC Nvest Growth and Income Fund. The Russell 1000 Value Index is a subset of stocks from the larger Russell 1000 Index, selected for their greater value orientation. The S&P 500 Index is a commonly used benchmark of U.S. equity securities. The indices are unmanaged, have no operating costs, and are included in the table to facilitate your comparison of the Harris Large Cap Value Composite's performance to broad-based market indices. These comparative indices' returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

(2) As of inception of the Harris Large Cap Value Composite, July 1, 1998.

Fund Services

It's Easy to Open an Account

To open an Account with CDC Nvest Funds:

1. Read this Prospectus carefully.

2. Read the following eligibility and minimum investment requirements to determine if you may purchase Class Y shares.

Class Y shares of the Fund may be purchased by the following entities at the following investment minimums.

A minimum initial investment is $1 million and $10,000 is the minimum subsequent investment for:

o Other mutual funds, endowments, foundations, bank trust departments or trust companies.

There is no initial or subsequent investment minimum for:

o Retirement Plans (401(a), 401(k), 457 or 403(b) plans) that have total investment assets of at least $10 million. Plan sponsor accounts can be aggregated to meet this minimum.

o Insurance Company Accounts of New England Financial, Metropolitan Life Insurance Company ("MetLife") or their affiliates.

o Separate Accounts of New England Financial, MetLife or their affiliates.

o Wrap Fee Programs of certain broker-dealers not being paid by the Fund, CDC IXIS Advisers or the Distributor. Such wrap fee programs may be subject to additional or different conditions, including a wrap account fee. Each broker-dealer is responsible for transmitting to its customer a schedule of fees and other information regarding any such conditions. If the participant who purchased Class Y shares through a wrap fee program should terminate the wrap fee arrangement with the broker-dealer, then the Class Y shares will, at the discretion of the broker-dealer, automatically be converted to a number of Class A shares of the same Fund having the same dollar value of the shares converted, and the broker-dealer may thereafter be entitled to receive from that Fund an annual service fee of 0.25% of the value of Class A shares owned by that shareholder.

o Certain Individual Retirement Accounts if the amounts invested represent rollover distributions from investments by any of the Retirement Plans set forth above.

o Deferred Compensation Plan Accounts of New England Life Insurance Company ("NELICO"), MetLife or their affiliates ("Deferred Compensation Accounts").

o Service Accounts through an omnibus account by investment advisers, financial planners, broker-dealers or other intermediaries who have entered into a service agreement with a Fund. A fee may be charged to shareholders purchasing through a service account if they effect transactions through such parties and they should contact such parties regarding information regarding such fees.

3. You should contact CDC Nvest Funds at 800-225-5478 for an application or if you have any questions about purchasing Fund shares.

4. Use the sections of this Prospectus that follow as your guide for purchasing shares.

Certificates

You will not receive certificates representing Class Y Shares.

                             Opening an Account                     Adding to an Account
Through Your Investment Dealer

                  o     Call your investment dealer for information about
                        opening or adding to an account.

By Mail

                  o     Make out a check in U.S.         o     Make out a check in U.S.
                        dollars for the investment             dollars for the investment
                        amount, payable to "CDC Nvest          amount, payable to "CDC Nvest
                        Funds." Third party checks and         Funds." Third party checks and
[envelope icon]         "starter" checks will not be           "starter" checks will not be
                        accepted.                              accepted.


                  o     Mail the check with your         o     Complete the investment slip
                        completed application to CDC           from an account statement or
                        Nvest Funds, P.O. Box 219579,          include a letter specifying
                        Kansas City, MO 64121-9579.            the Fund name, your class of
                                                               shares, your account number
                                                               and the registered account
                                                               name(s).



By Exchange (See the section entitled "Exchanging Shares" for more details.)

                  o     Obtain a current prospectus      o     Call your investment dealer or
                        for the Fund into which you            CDC Nvest Funds to request an
                        are exchanging by calling your         exchange.
[exchange icon]         investment dealer or CDC Nvest
                        Funds at 800-225-5478.           o     Call your investment dealer or
                                                               CDC Nvest Funds at
                                                               800-225-5478 to request an
                                                               exchange.

By Wire

                  o     Call CDC Nvest Funds at          o     Instruct your bank to transfer
                        800-225-5478 to obtain an              funds to State Street Bank &
                        account number and wire                Trust Company, ABA# 011000028,
                        transfer instructions. Your            DDA# 99011538.
                        bank may charge you for such a
[wire icon]             transfer.                        o     Specify the Fund name, your
                                                               class of shares, your account
                                                               number and the registered
                                                               account name(s). Your bank may
                                                               charge you for such a
                                                               transfer.

Through Automated Clearing House ("ACH")

                  o     Ask your bank or credit union    o     Call CDC Nvest Funds at
                        whether it is a member of the          800-225-5478 to add shares to
                        ACH system.                            your account through ACH.

                  o     Complete the "Bank               o     If you have not signed up for
                        Information" section on your           the ACH system, please call
[ACH icon]              account application.                   CDC Nvest Funds for a Service
                                                               Options Form.
                  o     Mail your completed
                        application to CDC Nvest
                        Funds, P.O. Box 219579, Kansas
                        City, MO 64121-9579.

Fund Services

Selling Shares

To Sell Some or All of Your Shares

Certain restrictions may apply. See section entitled "Restrictions on Buying, Selling and Exchanging Shares."

Financial Performance

The financial highlights tables are intended to help you understand each Fund's financial performance for the last five years (or, if shorter, the period of the Fund's operations). Certain information reflects financial results for a single Fund share. The total returns in the table represent the return that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, independent accountants, whose report, along with each Fund's financial statements, are incorporated by reference in the SAI, which is available without charge upon request.

For a share outstanding throughout each period.

                                             Income (loss)
                                       from investment operations:                         Less distributions:
                                   --------------------------------------  -----------------------------------------------------

                       Net asset
                         value,        Net     Net realized                  Dividends    Distributions
                       beginning   investment and unrealized   Total from      from          from net
                           of        income   gain (loss) on   investment  net investment    realized     Return of     Total
                       the period    (loss)     investments    operations      income      capital gains   capital  distributions
                       ----------  ---------- --------------   ----------  -------------- --------------  --------- -------------
AEW REAL ESTATE FUND
    Class Y
   01/31/2003            $11.21     $ 0.42(d)      $(0.22)       $ 0.20      $(0.45)          $(0.16)      $   --     $(0.61)
   01/31/2002             10.49       0.58(d)        0.81          1.39       (0.56)           (0.11)          --      (0.67)
   01/31/2001 (g)         10.00       0.23(d)        0.55          0.78       (0.29)              --           --      (0.29)

GROWTH AND INCOME FUND
    Class Y
   12/31/2002            $11.93     $ 0.07(d)      $(2.41)       $(2.34)     $   --           $   --       $   --     $   --
   12/31/2001             13.87       0.06(d)       (2.00)        (1.94)         --               --           --         --
   12/31/2000             15.36       0.07(d)       (1.10)        (1.03)         --            (0.46)          --      (0.46)
   12/31/1999             16.57       0.02           1.51          1.53       (0.08)           (2.66)          --      (2.74)
   12/31/1998(h)          15.42       0.02           1.22          1.24       (0.02)           (0.07)          --      (0.09)

INTERNATIONAL EQUITY
FUND
    Class Y
   12/31/2002             13.11       0.01(d)       (2.69)        (2.68)         --               --           --         --
   12/31/2001             17.02      (0.02)(d)      (3.89)        (3.91)         --               --           --         --
   12/31/2000             25.81      (0.10)(d)      (7.04)        (7.14)      (0.17)           (1.48)          --      (1.65)
   12/31/1999             14.45       0.02(d)       12.54         12.56       (0.07)           (1.13)          --      (1.20)
   12/31/1998             14.35       0.25(d)        0.77          1.02       (0.64)           (0.28)          --      (0.92)

LARGE CAP GROWTH FUND*
    Class Y
   12/31/2002             13.93      (0.01)(d)      (4.95)        (4.96)         --               --           --         --
   12/31/2001(i)          12.46      (0.01)(d)       1.48          1.47          --               --           --         --
    9/30/2001             21.73      (0.01)(d)      (7.90)        (7.91)         --            (1.36)          --      (1.36)
    9/30/2000(j)          16.21      (0.06)(d)       5.58          5.52          --               --           --         --

TARGETED EQUITY FUND
    Class Y
   12/31/2002              7.85      (0.02)(d)      (2.20)        (2.22)         --               --           --         --
   12/31/2001              9.37       0.01(d)       (1.50)        (1.49)      (0.03)              --           --      (0.03)
   12/31/2000             11.01       0.12(d)       (0.60)        (0.48)      (0.09)           (1.07)          --      (1.16)
   12/31/1999(k)          11.94       0.03           0.99          1.02          --            (1.95)         --       (1.95)

* The financial information for the periods through November 16, 2001 reflects the financial information for Kobrick Growth Fund's Class Y shares which were reorganized into Class Y shares of Large Cap Growth Fund as of November 16, 2001. The predecessor Fund was advised by Kobrick Funds LLC until July 1, 2001 and had a September 30 fiscal year end.

(a) Periods less than one year are not annualized.

(b) Computed on an annualized basis for periods less than one year.

(c) Certain Funds have entered into agreements with certain brokers to rebate a portion of brokerage commissions. The rebated commissions are used to reduce operating expenses of the Fund.

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

(e) Had certain expenses not been reduced during the periods shown, total returns would have been lower.

(f) The investment adviser agreed to reimburse a portion of the Fund's expenses during the period. Without this reimbursement, expense ratios would have been higher.

                                                     Ratios to average net assets:
                                              ------------------------------------------

  Net asset                    Net assets,                    Expenses
   value,         Total          end of                     after expense  Net investment    Portfolio
   end of        return        the period      Expenses      reductions    income (loss)     turnover
 the period      (%) (a)          (000)         (%) (b)       (%)(b)(c)        (%) (b)       rate (%)
-----------    -----------    -----------     -----------    -----------   --------------   -----------
  $10.80          1.5(e)       $   1,521         1.25(f)        1.25(f)         3.72            35
   11.21         13.5(e)             611         1.25(f)        1.25(f)         5.35            36
   10.49          7.8(e)             539         1.25(f)        1.25(f)         5.40            12

  $ 9.59        (19.6)         $  10,569         0.96           0.94            0.66           195
   11.93        (14.0)            11,918         0.91           0.87            0.52           154
   13.87         (7.0)            10,131         0.87           0.84            0.48           139
   15.36          9.8             14,377         0.96           0.96           (0.73)          133
   16.57          8.1                  1         0.98           0.98            0.58           114

   10.43        (20.4)             3,330         1.60           1.58            0.07           125
   13.11        (23.0)             7,249         1.49           1.49           (0.11)          172
   17.02        (28.2)            11,940         1.39           1.39           (0.44)          212
   25.81         88.6(e)          14,441         1.55(f)        1.55(f)         0.10           229
   14.45          7.3(e)           5,552         1.31(f)        1.31(f)         1.64           105

    8.97        (35.6)(e)            792         1.15(f)        1.12(f)        (0.12)           44
   13.93         11.8(e)           1,196         1.15(f)        1.11(f)        (0.32)           27
   12.46        (38.3)(e)          1,251         1.15(f)        0.98(f)        (0.06)          724
   21.73         34.1(e)           1,746         1.15(f)        0.95(f)        (0.28)          826

    5.63        (28.3)             5,522         0.92           0.84           (0.31)          223
    7.85        (15.9)             8,785         0.87           0.83            0.13           243
    9.37         (4.2)            12,260         0.85           0.83            1.16           266
   11.01          9.7             15,418         0.87           0.87            0.48           206

(g) For the period August 31, 2000 (commencement of operations) through January 31, 2001.

(h) For the period November 18, 1998 (inception) through December 31, 1998.

(i) For the three months ended December 31, 2001.

(j) For the period October 29, 1999 (inception) through September 30, 2000.

(k) For the period June 30, 1999 (inception) through December 31, 1999.

Glossary of Terms

American Depositary Receipts (ADRs) -- Instruments issued by U.S. banks that represent an interest in equity securities held by arrangement with the bank. These instruments can be either "sponsored" or "unsponsored." Sponsored depositary receipts are issued by banks in cooperation with the issuer of the underlying equity securities. Unsponsored depositary receipts are arranged without involvement by the issuer of the underlying equity securities.

Bid price -- The price a prospective buyer is ready to pay. This term is used by traders who maintain firm bid and offer prices in a given security by standing ready to buy or sell security units at publicly quoted prices.

Bottom-up analysis -- The analysis of potential performance of individual stocks before considering the impact of economic trends. Such companies may be identified from research reports, stock screens or personal knowledge of the products and services.

Capital gain distributions -- Payments to a Fund's shareholders of net profits earned from selling securities in a Fund's portfolio. Capital gain distributions are usually paid once a year.

Credit rating -- Independent evaluation of a bond's creditworthiness. This measurement is usually calculated through an index compiled by companies such as Standard & Poor's Rating Service, Inc. ("S&P"), Moody's Investors Service, Inc. ("Moody's"), or Fitch Investors Services, Inc. ("Fitch"). Bonds with a credit rating of BBB or higher by S&P or Fitch, or Baa or higher by Moody's, are generally considered investment grade.

Debt-to-Total Capital Ratio -- Total debt (current and long-term) divided by total capital (debt and equity). This ratio provides information regarding the extent of a company's reliance on debt financing. A high ratio indicates a high degree of financial leverage and a high degree of risk.

Derivative -- A financial instrument whose value and performance are based on the value and performance of another security or financial instrument.

Discounted price -- The difference between a bond's current market price and its face or redemption value.

Diversification -- The strategy of investing in a wide range of securities representing different market sectors to reduce the risk if an individual company or one sector suffers losses.

Dividend yield -- The current or estimated annual dividend divided by the market price per share of a security.

Duration -- An estimate of how much a bond's price fluctuates with changes in comparable interest rates.

Earnings growth -- A pattern of increasing rates of growth in earnings per share from one period to another, which usually causes a stock's price to rise.

European Depositary Receipts (EDRs) -- Instruments issued by European banks that represent an interest in equity securities held by arrangement with the bank. Sponsored depositary receipts are issued by banks in cooperation with the issuer of the underlying equity securities. Unsponsored depositary receipts are arranged without involvement by the issuer of the underlying equity securities.

FFO Multiple - The price per share of a REIT divided by its Funds from Operations (FFO). The FFO of a REIT is the measure of its operating performance showing its net income plus depreciation of real estate and excluding gains or losses from sales of property or debt restructuring.

Fundamental analysis -- An analysis of the balance sheet and income statements of a company in order to forecast its future stock price movements. Fundamental analysis considers records of assets, earnings, sales, products, management and markets in predicting future trends in these indicators of a company's success or failure. By appraising a company's prospects, analysts using such an approach assess whether a particular stock or group of stocks is undervalued or overvalued at its current market price.

Global Depositary Receipts (GDRs) -- Instruments issued by companies and offered in many markets around the world that represent an interest in equity securities held by arrangement with the bank. Sponsored depositary receipts are issued by banks in cooperation with the issuer of the underlying equity securities. Unsponsored depositary receipts are arranged without involvement by the issuer of the underlying equity securities.

Growth investing -- An investment style that emphasizes companies with strong earnings growth. Growth investing is generally considered more aggressive than "value" investing.

Income distributions -- Payments to a Fund's shareholders resulting from the net interest or dividend income earned by a Fund's portfolio.

Inflation -- A general increase in prices coinciding with a fall in the real value of money, as measured by the Consumer Price Index.

Interest rate -- Rate of interest charged for the use of money, usually expressed at an annual rate.

Market capitalization -- Market price multiplied by number of shares outstanding. Large capitalization companies generally have over $5 billion in market capitalization; medium cap companies between $1.5 billion and $5 billion; and small cap companies less than $1.5 billion. These capitalization figures may vary depending upon the index being used and/or the guidelines used by the portfolio manager.

Maturity -- The final date on which the payment of a debt instrument (e.g., bonds, notes, repurchase agreements) becomes due and payable. Short-term bonds generally have maturities of up to 5 years; intermediate-term bonds between 5 and 15 years; and long-term bonds over 15 years.

Net assets -- A Fund's assets minus its liabilities. With respect to the Funds that have a policy to invest 80% of their net assets in particular kinds of securities, "net assets" as used in such policies means net assets plus borrowings made for investment purposes.

Net asset value (NAV) per share -- The market value of one share of a Fund on any given day without taking into account any front-end sales charge or CDSC. It is determined by dividing a Fund's total net assets by the number of shares outstanding.

Price-to-book value ratio -- Current market price of a stock divided by its book value. Some firms use the inverse ratio for this calculation (i.e., book-to-price ratio).

Price-to-earnings ratio -- Current market price of a stock divided by its earnings per share. Also known as the "multiple," the price-to-earnings ratio gives investors an idea of how much they are paying for a company's earning power and is a useful tool for evaluating the costs of different securities. The ratio may be calculated using "trailing" earnings or estimates of future (or "forward") earnings. Some firms use the inverse ratio for this calculation (i.e., earnings-to-price ratio).

Qualitative analysis -- An analysis of the qualities possessed by a company, including its management, products and competitive positions, to help determine if the company can execute its strategies.

Return on equity -- The amount, expressed as a percentage, earned on a company's common stock investment for a given period. It is calculated by dividing common stock equity (net worth) at the beginning of the accounting period into net income for the period after preferred stock dividends but before common stock dividends. This tells common shareholders how effectively their money is being employed.

Rule 144A securities -- Rule 144A securities are privately offered securities that can be resold only to certain qualified institutional buyers. Rule 144A securities are treated as illiquid, unless a manager has determined, under guidelines established by a Fund's trustees, that a particular issue of Rule 144A securities is liquid.

Target price -- Price that an investor is hoping a stock he or she has just bought will rise to within a specified period of time. An investor may buy XYZ at $20, with a target price of $40 in one year's time, for instance.

Technical analysis -- The research into the demand and supply for securities, options, mutual funds and commodities based on trading volume and price studies. Technical analysis uses charts or computer programs to identify and project price trends in a market, security, mutual fund or futures contract.

Top-down approach -- The method in which an investor first looks at trends in the general economy, and next selects industries and then companies that the investor believes should benefit from those trends.

Total return -- The change in value of an investment in a Fund over a specific time period expressed as a percentage. Total returns assume all distributions are reinvested in additional shares of a Fund.

Value investing -- A relatively conservative investment approach that focuses on companies that may be temporarily out of favor or whose earnings or assets are not fully reflected in their stock prices. Value stocks will tend to have a lower price-to-earnings ratio than growth stocks.

Volatility -- The general variability of a portfolio's value resulting from price fluctuations of its investments. In most cases, the more diversified a portfolio is, the less volatile it will be.

Yield -- The rate at which a Fund earns income, expressed as a percentage. Mutual fund yield calculations are standardized, based upon a formula developed by the SEC.

Yield-to-maturity -- The concept used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond, is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield (the interest rate on a debt security the issuer promises to pay to the holder until maturity, expressed as an annual percentage of face value) and the time between interest payments.

If you would like more information about the Funds, the following documents are available free upon request:

Annual and Semiannual Reports -- Provide additional information about each Fund's investments. Each report includes a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal year.

Statement of Additional Information (SAI) -- Provides more detailed information about the Funds and their investment limitations and policies, has been filed with the SEC and is incorporated into this Prospectus by reference.

To order a free copy of the Funds' annual or semiannual report or their SAI, contact your financial representative, or the Funds at:

CDC IXIS Asset Management Distributors, L.P., 399 Boylston Street, Boston, MA 02116 Telephone: 800-225-5478 Internet: www.cdcnvestfunds.com

Important Notice Regarding Delivery of Shareholder Documents:

In our continuing effort to reduce your fund's expenses and the amount of mail that you receive from us, we combine mailings of prospectuses, annual or semiannual reports and proxy statements to your household. If more than one family member in your household owns the same fund or funds described in a single prospectus, report or proxy statement, you will receive one mailing unless you request otherwise. Additional copies of our prospectuses, reports or proxy statements may be obtained at anytime by calling 800-225-5478. If you are currently receiving multiple mailings to your household and would like to receive only one mailing or if you wish to receive separate mailings for each member of your household in the future, please call us at the telephone number listed above and we will resume separate mailings within 30 days of your request.

Your financial representative or CDC Nvest Funds will also be happy to answer your questions or to provide any additional information that you may require.

Information about the Funds, including their reports and SAI, can be reviewed and copied at the Public Reference Room of the SEC in Washington, D.C. Text-only copies of the Funds' reports and SAI are available free from the SEC's Internet site at: www.sec.gov. Copies of this information may also be obtained, after paying a duplicating fee, by electronic request at the following E-mail address:
publicinfo@sec.gov, or by writing the SEC's Public Reference Section, Washington, D.C. 20549-0102.
Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-202-942-8090.

(Investment Company Act File No. 811-4323)

(Investment Company Act File No. 811-242)

(Investment Company Act File No. 811-7345)

(Investment Company Act File No. 811-09945)

CDC IXIS Asset Management Distributors, L.P., and other firms selling shares of CDC Nvest Funds are members of the National Association of Securities Dealers, Inc. (NASD). As a service to investors, the NASD has asked that we inform you of the availability of a brochure on its Public Disclosure Program.
The program provides access to information about securities firms and their representatives.
Investors may obtain a copy by contacting the NASD at 800-289-9999 or by visiting its Web site at www.NASDR.com.

YS51-0503

[LOGO] CDC Nvest Funds(SM)

CDC IXIS Asset Management Distributors

What's Inside

Goals, Strategies & Risks..Page 1

Fund Fees & Expenses.......Page 5

Management Team............Page 8

Fund Services..............Page 10

Financial Performance......Page 23  CDC Nvest Tax Free Income Funds

[LOGO] LOOMIS-SAYLES A              CDC Nvest Massachusetts Tax Free Income Fund
COMPANY, L.P.                       Loomis, Sayles & Company, L.P.

                                    CDC Nvest Municipal Income Fund
                                    Loomis, Sayles & Company, L.P.

Prospectus May 1, 2003

The Securities and Exchange Commission has not approved any Fund's shares or determined whether this Prospectus is accurate or complete. Anyone who tells you otherwise is committing a crime.

For general information on the Funds or any of their services and for assistance in opening an account, contact your financial representative or call CDC Nvest Funds.

CDC Nvest Funds
399 Boylston Street, Boston, Massachusetts 02116 800-225-5478

www.cdcnvestfunds.com

Table of Contents

Goals, Strategies & Risks

CDC Nvest Massachusetts Tax Free Income Fund ..............................  1
CDC Nvest Municipal Income Fund ...........................................  3

Fund Fees & Expenses

Fund Fees & Expenses ......................................................  5

More About Risk

More About Risk............................................................  7

Management Team

Meet the Funds' Investment Adviser and Subadviser .........................  8
Meet the Funds' Portfolio Managers ........................................  9

Fund Services

Investing in the Funds .................................................... 10
How Sales Charges Are Calculated .......................................... 11
Ways to Reduce or Eliminate Sales Charges ................................. 12
It's Easy to Open an Account .............................................. 13
Buying Shares ............................................................. 14
Selling Shares ............................................................ 15
Selling Shares in Writing ................................................. 17
Exchanging Shares ......................................................... 18
Restrictions on Buying, Selling and Exchanging Shares ..................... 18
How Fund Shares Are Priced ................................................ 19
Dividends and Distributions ............................................... 20
Tax Consequences .......................................................... 20
Compensation to Securities Dealers ........................................ 21
Additional Investor Services .............................................. 22

Financial Performance

Financial Performance ..................................................... 23

Glossary of Terms

Glossary of Terms.......................................................... 25

If you have any questions about any of the terms used in this Prospectus, please refer to the "Glossary of Terms."

To learn more about the possible risks of investing in the Funds, please refer to the section entitled "More About Risk." This section details the risks of practices in which the Funds may engage. Please read this section carefully before you invest.

Fund shares are not bank deposits and are not guaranteed, endorsed or insured by the Federal Deposit Insurance Corporation or any other government agency, and are subject to investment risks, including possible loss of the principal invested.

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function in June 2001. This chart and table reflect results achieved by the previous subadviser under different investment policies for periods prior to June 2001. The Fund's performance might have been different had the current advisory arrangements and investment policies been in place for all periods shown.

The bar chart shows the Fund's total returns for Class A shares for each of the last ten calendar years. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

(total return)

 1993    1994     1995    1996    1997    1998    1999    2000    2001    2002
 ----    ----     ----    ----    ----    ----    ----    ----    ----    ----
12.40%  -7.34%   17.83%  3.24%   9.32%   4.92%   -4.12%  9.27%   3.21%   8.12%

The table below shows how the average annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers Municipal Bond Index, an unmanaged index of bonds issued by states, municipalities and other government entities having maturities of more than one year. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charge that you may be required to pay when you buy or redeem the Fund's shares. Class A returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Lehman Brothers Municipal Bond Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

--------------------------------------------------------------------------------------------------------------------
                                                                                                      Since Class B
Average Annual Total Returns                                                                            Inception
(for the periods ended December 31, 2002)           Past 1 Year     Past 5 Years     Past 10 Years      (9/13/93)
--------------------------------------------------------------------------------------------------------------------
Class A - Return Before Taxes                          3.53%            3.27%             4.98%              --
    Return After Taxes on Distributions*               1.87%            2.72%             4.44%              --
    Return After Taxes on Distributions &
    Sales of Fund Shares*                              2.13%            3.01%             4.51%              --
Class B - Return Before Taxes                          2.43%            3.16%               --              3.93%
--------------------------------------------------------------------------------------------------------------------
Lehman Brothers Municipal Bond Index**                 9.60%            6.06%             6.71%             6.09%
--------------------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. After-tax returns are shown for only Class A shares. After-tax returns for Class B shares of the Fund will vary.

** The returns of the Index do not reflect the effect of taxes. The returns the Index are calculated from 9/30/93 for Class B shares. Class A commenced operations 3/23/84.

For past expenses of Classes A and B shares, see the section entitled "Fund Fees & Expenses."

Financial Performance

The financial highlights tables are intended to help you understand each Fund's financial performance for the last five years. Certain information reflects financial results for a single Fund share. The total returns in the table represent the return that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, independent accountants, whose report, along with each Fund's financial statements, are incorporated by reference in the SAI, which is available without charge upon request.

For a share outstanding throughout each period.

                                       Income (loss) from investment
                                                 operations:                      Less distributions:
                                     ------------------------------------  ---------------------------------
                                                    Net
                                                  realized                             Distribu-
                         Net asset                  and                    Dividends     tions
                          value,                 unrealized      Total       from       from net               Net asset
                         beginning      Net      gain (loss)     from         net       realized      Total      value,     Total
                            of       investment      on        investment  investment    capital    distribu-    end of     return
                        the period     income    investments   operations    income       gains       tions    the period  (%) (a)
                        ----------   ----------  -----------   ----------  ----------  ----------   ---------  ----------  -------
MASSACHUSETTS TAX FREE
INCOME FUND

    Class A
----------------------------------------------------------------------------------------------------------------------------------
    12/31/2002             $15.82      $ 0.67      $ 0.59        $ 1.26      $(0.68)    $     --      $(0.68)     $16.40     8.1
----------------------------------------------------------------------------------------------------------------------------------
    12/31/2001 (d)          16.06        0.75       (0.24)         0.51       (0.75)          --       (0.75)      15.82     3.2(b)
    12/31/2000              15.48        0.82        0.57          1.39       (0.81)          --       (0.81)      16.06     9.3(b)
    12/31/1999              17.02        0.82       (1.50)        (0.68)      (0.83)       (0.03)      (0.86)      15.48    (4.1)(b)
    12/31/1998              17.13        0.86       (0.04)         0.82       (0.85)       (0.08)      (0.93)      17.02     4.9(b)

    Class B
----------------------------------------------------------------------------------------------------------------------------------
    12/31/2002              15.78        0.57        0.58          1.15       (0.57)          --       (0.57)      16.36     7.4
----------------------------------------------------------------------------------------------------------------------------------
    12/31/2001 (d)          16.03        0.64       (0.24)         0.40       (0.65)          --       (0.65)      15.78     2.5(b)
    12/31/2000              15.45        0.71        0.58          1.29       (0.71)          --       (0.71)      16.03     8.6(b)
    12/31/1999              16.98        0.71       (1.49)        (0.78)      (0.72)       (0.03)      (0.75)      15.45    (4.7)(b)
    12/31/1998              17.09        0.74       (0.03)         0.71       (0.74)       (0.08)      (0.82)      16.98     4.2(b)

MUNICIPAL INCOME FUND

    Class A
----------------------------------------------------------------------------------------------------------------------------------
    12/31/2002             $ 7.25      $ 0.34      $ 0.18        $ 0.52      $(0.34)    $     --      $(0.34)     $ 7.43     7.3
----------------------------------------------------------------------------------------------------------------------------------
    12/31/2001 (d)           7.39        0.36       (0.14)         0.22       (0.36)          --       (0.36)       7.25     3.0
    12/31/2000               7.17        0.40        0.21          0.61       (0.39)          --       (0.39)       7.39     8.8
    12/31/1999               7.76        0.39       (0.59)        (0.20)      (0.39)          --       (0.39)       7.17    (2.8)
    12/31/1998               7.75        0.39        0.01          0.40       (0.39)          --       (0.39)       7.76     5.3

    Class B
----------------------------------------------------------------------------------------------------------------------------------
    12/31/2002               7.25        0.29        0.19          0.48       (0.29)          --       (0.29)       7.44     6.7
----------------------------------------------------------------------------------------------------------------------------------
    12/31/2001 (d)           7.39        0.31       (0.14)         0.17       (0.31)          --       (0.31)       7.25     2.2
    12/31/2000               7.17        0.35        0.21          0.56       (0.34)          --       (0.34)       7.39     8.0
    12/31/1999               7.76        0.33       (0.59)        (0.26)      (0.33)          --       (0.33)       7.17    (3.5)
    12/31/1998               7.75        0.33        0.01          0.34       (0.33)          --       (0.33)       7.76     4.5

(a) A sales charge for Class A shares and a contingent deferred sales charge for Class B shares are not reflected in total return calculations.

(b) Had certain expenses not been reduced during the period, total returns would have been lower.

(c) The investment adviser agreed to reimburse a portion of the Fund's expenses during the period. Without this reimbursement, expense ratios would have been higher.

(d) As required, effective January 1, 2001, the Funds have adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discount on debt securities. The effect of this change for the year ended December 31, 2001, for Massachusetts Tax Free Income Fund, the effect of this change was to increase the ratio of net investment income to average net assets from 4.66% to 4.67% for Class A shares and from 4.02% to 4.03% for Class B shares. For Municipal Income Fund, the effect of this change was to increase net investment income per share by $.01 and decrease net realized and unrealized gains and losses per share by $.01 for Class A shares and Class B shares, and increase the ratio of net investment income to average net assets from 4.84% to 4.89% for Class A shares and from 4.09% to 4.14% for Class B shares. Per share, ratios and supplemental data for periods prior to January 1, 2001 have not been restated to reflect this change in presentation.

   Net assets,
     end of                     Net investment    Portfolio
   the period      Expenses         income        turnover
      (000)          (%)             (%)          rate (%)
  ------------    -----------    -----------    ------------

----------------------------------------------------------------
    $ 92,053        1.34            4.19             33
----------------------------------------------------------------
      89,376        1.35(c)         4.67             60
      91,785        1.13(c)         5.24             68
      97,270        1.00(c)         5.02             73
     113,910        1.00(c)         4.93            125

----------------------------------------------------------------
       6,742        1.99            3.54             33
----------------------------------------------------------------
       8,313        2.00(c)         4.03             60
       8,715        1.78(c)         4.59             68
       8,874        1.65(c)         4.37             73
       9,026        1.65(c)         4.28            125

----------------------------------------------------------------
    $133,005        1.06            4.67             33
----------------------------------------------------------------
     137,852        1.07            4.89             80
     142,539        0.95            5.39            156
     152,829        0.93            5.13            137
     172,643        0.93            5.03             26

----------------------------------------------------------------
      12,326        1.81            3.92             33
----------------------------------------------------------------
      14,549        1.82            4.14             80
      14,520        1.70            4.64            156
      15,644        1.68            4.38            137
      15,878        1.68            4.28             26

Glossary of Terms

Bid price -- The price a prospective buyer is ready to pay. This term is used by traders who maintain firm bid and offer prices in a given security by standing ready to buy or sell security units at publicly quoted prices.

Capital gain distributions -- Payments to a Fund's shareholders of net profits earned from selling securities in a Fund's portfolio. Capital gain distributions are usually paid once a year.

Credit rating -- Independent evaluation of a bond's creditworthiness. This measurement is usually calculated through an index compiled by companies such as S&P, Moody's, or Fitch. Bonds with a credit rating of BBB or higher by S&P or Fitch, or Baa or higher by Moody's, are generally considered investment grade.

Derivative -- A financial instrument whose value and performance are based on the value and performance of another security or financial instrument.

Discounted price -- The difference between a bond's current market price and its face or redemption value.

Diversification -- The strategy of investing in a wide range of securities representing different market sectors to reduce the risk if an individual company or one sector suffers losses.

Dividend yield -- The current or estimated annual dividend divided by the market price per share of a security.

Duration -- An estimate of how much a bond's price fluctuates with changes in comparable interest rates.

Earnings growth -- A pattern of increasing rates of growth in earnings per share from one period to another, which usually causes a stock's price to rise.

Fundamental analysis -- An analysis of the balance sheet and income statements of a company in order to forecast its future stock price movements. Fundamental analysis considers records of assets, earnings, sales, products, management and markets in predicting future trends in these indicators of a company's success or failure. By appraising a company's prospects, analysts using such an approach assess whether a particular stock or group of stocks is undervalued or overvalued at its current market price.

Income distributions -- Payments to a Fund's shareholders resulting from the net interest or dividend income earned by a Fund's portfolio.

Inflation -- A general increase in prices coinciding with a fall in the real value of money, as measured by the Consumer Price Index.

Interest rate -- Rate of interest charged for the use of money, usually expressed at an annual rate.

Market capitalization -- Market price multiplied by number of shares outstanding. Large capitalization companies generally have over $5 billion in market capitalization; medium cap companies between $1.5 billion and $5 billion; and small cap companies less than $1.5 billion. These capitalization figures may vary depending upon the index being used and/or the guidelines used by the portfolio manager.

Maturity -- The final date on which the payment of a debt instrument (e.g., bonds, notes, repurchase agreements) becomes due and payable. Short-term bonds generally have maturities of up to 5 years; intermediate-term bonds between 5 and 15 years; and long-term bonds over 15 years.

Net assets -- A Fund's assets minus its liabilities. With respect to the Funds that have a policy to invest 80% of their net assets in particular kinds of securities, "net assets" as used in such policies means net assets plus borrowings made for investment purposes.

Net asset value (NAV) per share -- The market value of one share of a Fund on any given day without taking into account any front-end sales charge or CDSC. It is determined by dividing a Fund's total net assets by the number of shares outstanding.

Price-to-earnings ratio -- Current market price of a stock divided by its earnings per share. Also known as the "multiple," the price-to-earnings ratio gives investors an idea of how much they are paying for a company's earning power and is a useful tool for evaluating the costs of different securities. The ratio may be calculated using "trailing" earnings or estimates of future (or "forward") earnings. Some firms use the inverse ratio for this calculation (i.e., earnings-to-price ratio).

Rule 144A securities -- Rule 144A securities are privately offered securities that can be resold only to certain qualified institutional buyers. Rule 144A securities are treated as illiquid, unless a manager has determined, under guidelines established by a Fund's trustees, that a particular issue of Rule 144A securities is liquid.

Target price -- Price that an investor is hoping a stock he or she has just bought will rise to within a specified period of time. An investor may buy XYZ at $20, with a target price of $40 in one year's time, for instance.

Technical analysis -- The research into the demand and supply for securities, options, mutual funds and commodities based on trading volume and price studies. Technical analysis uses charts or computer programs to identify and project price trends in a market, security, mutual fund or futures contract.

Top-down approach -- The method in which an investor first looks at trends in the general economy, and next selects industries and then companies that the investor believes should benefit from those trends.

Total return -- The change in value of an investment in a Fund over a specific time period expressed as a percentage. Total returns assume all distributions are reinvested in additional shares of a Fund.

Value investing -- A relatively conservative investment approach that focuses on companies that may be temporarily out of favor or whose earnings or assets are not fully reflected in their stock prices. Value stocks will tend to have a lower price-to-earnings ratio than growth stocks.

Volatility -- The general variability of a portfolio's value resulting from price fluctuations of its investments. In most cases, the more diversified a portfolio is, the less volatile it will be.

Yield -- The rate at which a Fund earns income, expressed as a percentage. Mutual fund yield calculations are standardized, based upon a formula developed by the SEC.

Yield-to-maturity -- The concept used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond, is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield (the interest rate on a debt security the issuer promises to pay to the holder until maturity, expressed as an annual percentage of face value) and the time between interest payments.

Notes

Notes

If you would like more information about the Funds, the following documents are available free upon request:

Annual and Semiannual Reports -- Provide additional information about each Fund's investments. Each report includes a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal year.

Statement of Additional Information (SAI) -- Provides more detailed information about the Funds and their investment limitations and policies, has been filed with the SEC and is incorporated into this Prospectus by reference.

To order a free copy of the Funds' annual or semiannual report or their SAI, contact your financial representative, or the Funds at:

CDC IXIS Asset Management Distributors, L.P., 399 Boylston Street, Boston, MA 02116 Telephone: 800-225-5478 Internet: www.cdcnvestfunds.com

Important Notice Regarding Delivery of Shareholder Documents:

In our continuing effort to reduce your fund's expenses and the amount of mail that you receive from us, we combine mailings of prospectuses, annual or semiannual reports and proxy statements to your household. If more than one family member in your household owns the same fund or funds described in a single prospectus, report or proxy statement, you will receive one mailing unless you request otherwise. Additional copies of our prospectuses, reports or proxy statements may be obtained at anytime by calling 800-225-5478. If you are currently receiving multiple mailings to your household and would like to receive only one mailing or if you wish to receive separate mailings for each member of your household in the future, please call us at the telephone number listed above and we will resume separate mailings within 30 days of your request.

Your financial representative or CDC Nvest Funds will also be happy to answer your questions or to provide any additional information that you may require.

Information about the Funds, including their reports and SAI, can be reviewed and copied at the Public Reference Room of the SEC in Washington, D.C.

Text-only copies of the Funds' reports and SAI are available free from the SEC's Internet site at: www.sec.gov. Copies of this information may also be obtained, after paying a duplicating fee, by electronic request at the following E-mail address: publicinfo@sec.gov, or by writing the SEC's Public Reference Section, Washington, D.C. 20549-0102.

Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-202-942-8090.

CDC IXIS Asset Management Distributors, L.P., and other firms selling shares of CDC Nvest Funds are members of the National Association of Securities Dealers, Inc. (NASD). As a service to investors, the NASD has asked that we inform you of the availability of a brochure on its Public Disclosure Program. The program provides access to information about securities firms and their representatives. Investors may obtain a copy by contacting the NASD at 800-289-9999 or by visiting its Web site at www.NASDR.com.

(Investment Company Act File No. 811-242)

(Investment Company Act File No. 811-4323)

XTF51-0503

[LOGO] CDC Nvest Funds(SM)

CDC IXIS Asset Management Distributors

Goals, Strategies &
Risks ..................  Page  2

Fund Fees & Expenses ...  Page 12

Management Team ........  Page 15

Fund Services ..........  Page 17

Financial Performance ..  Page 32    CDC Nvest Income Funds

LS [LOGO] LOOMIS-SAYLES a            CDC Nvest Bond Income Fund
COMPANY, L.P.                        Loomis, Sayles & Company, L.P.

                                     CDC Nvest Government Securities Fund
                                     Loomis, Sayles & Company, L.P.

                                     CDC Nvest High Income Fund
                                     Loomis, Sayles & Company, L.P.

                                     CDC Nvest Limited Term U.S. Government Fund
                                     Loomis, Sayles & Company, L.P.

                                     CDC Nvest Strategic Income Fund
                                     Loomis, Sayles & Company, L.P.

                                                                      Prospectus
                                                                     May 1, 2003

The Securities and Exchange Commission has not approved any Fund's shares or determined whether this Prospectus is accurate or complete. Anyone who tells you otherwise is committing a crime.

For general information on the Funds or any of their services and for assistance in opening an account, contact your financial representative or call CDC Nvest Funds.

CDC Nvest Funds 399 Boylston Street, Boston, Massachusetts 02116 800-225-5478 www.cdcnvestfunds.com

Table of Contents

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of two broad measures of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on June 2001. This chart and table reflect results achieved by the previous subadviser under different investment policies for periods prior to June 2001. The Fund's performance may have been different under its current advisory arrangements and investment policies.

The bar chart shows the Fund's total returns for Class A shares for each of the last ten calendar years. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS DEPICTED BY A BAR CHART IN THE PRINTED MATERIAL.]

(total return)

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 11.86% -4.17% 20.77% 4.61% 11.05% 8.01% -0.34% 7.39% 7.24% 2.84%

The table below shows how the average annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers Aggregate Bond Index, an unmanaged index of investment-grade bonds with one- to ten-year maturities issued by the U.S. government and U.S. corporations. They are also compared to the Lehman Brothers U.S Credit Index, an unmanaged index that includes all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC-registered, investment-grade corporate debt. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charge that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Lehman Brothers Aggregate Bond Index and Lehman Brothers U.S. Credit Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Since Class B    Since Class C
   Average Annual Total Returns                                                                      Inception         Inception
   (for the period ended December 31, 2002)           Past 1 Year    Past 5 Years   Past 10 Years     (9/13/93)       (12/30/94)
------------------------------------------------------------------------------------------------------------------------------------
Class A - Return Before Taxes                             -1.82%          4.02%         6.23%
    Return After Taxes on Distributions*                  -3.88%          1.34%         3.31%
    Return After Taxes on Distributions &
      Sales of Fund Shares*                               -1.16%          1.86%         3.51%
Class B - Return Before Taxes                             -2.75%          3.90%                         5.12%
Class C - Return Before Taxes                              0.11%          3.99%                                          6.43%
------------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index**                     10.25%         7.55%         7.51%           7.07%            8.61%
Lehman Brothers U.S. Credit Index**                        10.53%         7.28%         7.86%           7.17%            8.90%
------------------------------------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The after-tax returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of each Index do not reflect the effect of taxes. The returns of each Index are calculated from 9/30/93 for Class B shares and 12/31/94 for Class C shares. Class A commenced operations 11/7/73.

For past expenses of Classes A, B and C shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on June 2001. This chart and table reflect results achieved by the previous subadviser under different investment policies for periods prior to June 2001. The Fund's performance may have been different under its current advisory arrangements and investment policies.

The bar chart shows the Fund's total returns for Class A shares for each of the last ten calendar years. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS DEPICTED BY A BAR CHART IN THE PRINTED MATERIAL.]

(total return)

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 9.00% -5.44% 20.03% 0.78% 10.32% 9.02% -6.42% 12.89% 4.93% 13.35%

The table below shows how the average annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers Government Bond Index ("Lehman Gov't Bond Index"), an unmanaged index of public debt of the U.S. Treasury, government agencies and their obligations. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charges that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Lehman Gov't Bond Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

-----------------------------------------------------------------------------------------------------------------
                                                                                                   Since Class B
   Average Annual Total Returns                                                                      Inception
   (for the periods ended December 31, 2002)          Past 1 Year    Past 5 Years   Past 10 Years     (9/23/93)
-----------------------------------------------------------------------------------------------------------------
   Class A - Return Before Taxes                         8.22%          5.53%           6.05%
       Return After Taxes on Distributions*              6.38%          3.33%           3.58%
       Return After Taxes on Distributions &
         Sales of Fund Shares*                           4.98%          3.28%           3.55%
   Class B - Return Before Taxes                         7.62%          5.38%                          5.20%
-----------------------------------------------------------------------------------------------------------------
   Lehman Gov't Bond Index**                            11.50%          7.77%           7.56%          6.98%
-----------------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The after-tax returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary.

** The returns of the Index do not reflect the effect of taxes. The returns of the Index are calculated from 9/30/93 for Class B shares. Class A commenced operations 9/16/85.

For past expenses of Classes A and B shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on July 1, 1996. This chart and table reflect results achieved by the previous subadviser using different investment policies for periods prior to July 1, 1996. The Fund's performance may have been different under its current advisory arrangements and investment policies.

The bar chart shows the Fund's total returns for Class A shares for each of the last ten calendar years. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS DEPICTED BY A BAR CHART IN THE PRINTED MATERIAL.]

(total return)

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 16.52% -3.22% 11.78% 14.88% 15.37% -1.70% 4.00% -16.09% -10.65% -8.86%

The table below shows how annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers High Yield Composite Index, a market-weighted unmanaged index of fixed-rate, non-investment grade debt. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charge that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Lehman Brothers High Yield Composite Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

------------------------------------------------------------------------------------------------------------------------------
                                                                                                Since Class B   Since Class C
Average Annual Total Returns                                                                      Inception        Inception
(for the periods ended December 31, 2002)           Past 1 Year   Past 5 Years   Past 10 Years     (9/20/93)       (3/2/98)
------------------------------------------------------------------------------------------------------------------------------
Class A - Return Before Taxes                       -12.91%         -7.78%           1.08%
    Return After Taxes on Distributions*            -15.84%        -11.48%          -2.76%
    Return After Taxes on Distributions &
      Sales of Fund Shares*                          -7.90%         -7.29%           0.66%
Class B - Return Before Taxes                       -13.86%         -7.83%                         -0.23%
Class C - Return Before Taxes                       -11.26%                                                         -8.34%
Lehman Brothers High Yield Composite Index**         -1.41%          0.38%           5.86%          4.98%           -2.35%
------------------------------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The after-tax returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of the Index do not reflect the effect of taxes. The returns for the Index are calculated from 9/30/93 for Class B shares and 3/31/98 for Class C shares. Class A commenced operations 2/22/84.

For past expenses of Classes A, B and C shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on June 2001. This chart and table reflect results achieved by the previous subadviser under different investment policies for periods prior to June 2001. The Fund's performance may have been different under its current advisory arrangements and investment policies.

The bar chart shows the Fund's total returns for Class A shares for each of the last ten calendar years. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS DEPICTED BY A BAR CHART IN THE PRINTED MATERIAL.]

(total return)

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 7.10% -2.22% 13.02% 2.38% 7.27% 6.46% -0.67% 8.34% 6.86% 8.18%

The table below shows how the average annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers Intermediate Government Bond Index ("Lehman Int. Gov't Bond Index"), an unmanaged index of bonds issued by the U.S. Government and its agencies having maturities between one and ten years. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charges that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Lehman Int. Gov't Bond Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

--------------------------------------------------------------------------------------------------------------------------------
                                                                                                Since Class B      Since Class C
Average Annual Total Returns                                                                      Inception           Inception
(for the periods ended December 31, 2002)           Past 1 Year   Past 5 Years   Past 10 Years    (9/27/93)          (12/30/94)
--------------------------------------------------------------------------------------------------------------------------------
Class A - Return Before Taxes                         4.94%          5.14%           5.19%
    Return After Taxes on Distributions*              3.08%          2.90%           2.72%
    Return After Taxes on Distributions &
      Sales of Fund Shares*                           2.99%          2.96%           2.86%
Class B - Return Before Taxes                         2.49%          4.78%                          4.50%
Class C - Return Before Taxes                         5.45%          4.88%                                              5.47%
Lehman Int. Gov't Bond Index**                        9.64%          7.44%           6.91%          6.60%               7.89%
--------------------------------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The after-tax returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary.

** The returns of the Index do not reflect the effect of taxes. The returns of the Index are calculated from 9/30/93 for Class B shares and 12/31/94 for Class C shares. Class A commenced operations 1/3/89.

For past expenses of Classes A, B and C shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of two broad measures of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

The bar chart shows the Fund's total returns for Class A shares for each calendar year since its first full year of operations. The returns for other classes of shares offered by this Prospectus differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

[THE FOLLOWING TABLE WAS DEPICTED BY A BAR CHART IN THE PRINTED MATERIAL.]

(total return)

1996 1997 1998 1999 2000 2001 2002 14.49% 9.33% -1.73% 12.17% 0.68% -0.14% 15.47%

The table below shows how the average annual total returns for each class of the Fund (before and after taxes for Class A) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers Aggregate Bond Index, an unmanaged index of investment-grade bonds with one- to ten-year maturities issued by the U.S. government, its agencies and U.S. corporations. They are also compared to the Lehman Brothers Universal Bond Index, an unmanaged index representing a blend of the Lehman Aggregate, High Yield and Emerging Market Indexes. You may not invest directly in an index. The Fund's total returns reflect, on a class by class basis, its expenses and the maximum sales charges that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Lehman Brothers Aggregate Bond Index and the Lehman Brothers Universal Bond Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

------------------------------------------------------------------------------------------------------------
Average Annual Total Returns                                                           Since Class Inception
(for the periods ended December 31, 2002)         Past 1 Year         Past 5 Years           (5/1/95)
------------------------------------------------------------------------------------------------------------
Class A - Return Before Taxes                        10.23%               4.09%                7.07%
    Return After Taxes on Distributions*              7.61%               0.54%                3.37%
    Return After Taxes on Distributions &
      Sales of Fund Shares*                           6.15%               1.49%                3.83%
Class B - Return Before Taxes                         9.64%               4.01%                6.90%
Class C - Return Before Taxes                        12.51%               4.06%                6.72%
------------------------------------------------------------------------------------------------------------
Lehman Brothers Aggregate Bond Index**               10.25%               7.55%                7.66%
Lehman Brothers Universal Bond Index**                9.83%               7.18%                7.57%
------------------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. The after-tax returns are shown for only one class of the Fund. After-tax returns for the other classes of the Fund will vary.

** The returns of each Index do not reflect the effect of taxes.

The returns of each Index are calculated from 5/31/95 for Classes A, B and C shares.

For past expenses of Classes A, B and C shares, see the section entitled "Fund Fees & Expenses."

Financial Performance

The financial highlights tables are intended to help you understand each Fund's financial performance for the last five years (or, if shorter, the period of the Fund's operations). Certain information reflects financial results for a single Fund share. The total returns in the table represent the return that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, independent accountants, whose report, along with the Fund's financial statements, are incorporated by reference in the SAI, which is available without charge upon request.

For a share outstanding throughout each period.

                                             Income (loss) from investment operations:            Less distributions:
                                            -----------------------------------------   ---------------------------------------
                                Net asset
                                 value,                    Net realized                   Dividends    Distributions
                               beginning         Net      and unrealized   Total from     from net      from net
                                   of        investment   gain (loss) on   investment    investment     realized        Total
                               the period      income       investments    operations      income      capital gains  distributions
                               ----------   -------------  ------------  ------------   ------------   -----------    -------------
BOND INCOME FUND
     Class A
   12/31/2002                  $  11.59     $    0.63(b)   $   (0.32)     $   0.31      $   (0.62)     $     --        $  (0.62)
   12/31/2001(c)                  11.52          0.73           0.10          0.83          (0.76)           --           (0.76)
   12/31/2000                     11.51          0.78           0.03          0.81          (0.80)           --           (0.80)
   12/31/1999                     12.36          0.81          (0.86)        (0.05)         (0.79)        (0.01)          (0.80)
   12/31/1998                     12.39          0.81           0.15          0.96          (0.81)        (0.18)          (0.99)

     Class B
   12/31/2002                     11.59          0.55(b)       (0.32)         0.23          (0.54)           --           (0.54)
   12/31/2001(c)                  11.51          0.64           0.10          0.74          (0.66)           --           (0.66)
   12/31/2000                     11.51          0.70           0.02          0.72          (0.72)           --           (0.72)
   12/31/1999                     12.36          0.72          (0.86)        (0.14)         (0.70)        (0.01)          (0.71)
   12/31/1998                     12.39          0.71           0.15          0.86          (0.71)        (0.18)          (0.89)

     Class C
   12/31/2002                     11.60          0.55(b)       (0.32)         0.23          (0.54)           --           (0.54)
   12/31/2001(c)                  11.52          0.65           0.09          0.74          (0.66)           --           (0.66)
   12/31/2000                     11.52          0.70           0.02          0.72          (0.72)           --           (0.72)
   12/31/1999                     12.37          0.72          (0.86)        (0.14)         (0.70)        (0.01)          (0.71)
   12/31/1998                     12.40          0.71           0.15          0.86          (0.71)        (0.18)          (0.89)

GOVERNMENT SECURITIES FUND
     Class A
   12/31/2002                   $ 11.18     $    0.45(b)   $    1.01     $    1.46      $   (0.52)     $     --        $  (0.52)
   12/31/2001(c)                  11.18          0.50           0.05          0.55          (0.55)           --           (0.55)
   12/31/2000                     10.47          0.62           0.69          1.31          (0.60)           --           (0.60)
   12/31/1999                     11.90          0.67          (1.42)        (0.75)         (0.68)           --           (0.68)
   12/31/1998                     11.56          0.68           0.33          1.01          (0.67)           --           (0.67)

     Class B
   12/31/2002                     11.17          0.36(b)        1.02          1.38          (0.43)           --           (0.43)
   12/31/2001(c)                  11.18          0.42           0.03          0.45          (0.46)           --           (0.46)
   12/31/2000                     10.47          0.54           0.69          1.23          (0.52)           --           (0.52)
   12/31/1999                     11.90          0.59          (1.42)        (0.83)         (0.60)           --           (0.60)
   12/31/1998                     11.56          0.58           0.34          0.92          (0.58)           --           (0.58)

(a) A sales charge for Class A and Class C shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations.

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

(c) As required, effective January 1, 2001, the Funds have adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium on debt securities. The effect of this change for the year ended December 31, 2001 for Bond Income Fund was to decrease net investment income per share by $.01 for Class A and $.02 for Class B and $0.01 for Class C and to decrease the ratio of net investment income to average net assets from 6.34% to 6.26% for Class A, 5.57% to 5.49% for Class B and 5.59% to 5.52% for Class C. For Government Securities Fund, the effect of this change was to decrease net investment income per share by $.05 for Class A and $.04 for Class B and to decrease the ratio of net investment income to average net assets from 4.85% to 4.46% for Class A, and 4.10% to 3.71% for Class B. Per share, ratios and supplemental data for periods prior to January 1, 2001 have not been restated to reflect this change in presentation.

                                                Ratios to average net assets:
                                                -----------------------------

    Net asset                     Net assets,
     value,         Total           end of                    Net investment     Portfolio
     end of         return        the period      Expenses        income         turnover
   the period       (%) (a)          (000)           (%)            (%)          rate (%)
  -----------     -----------    -----------     -----------    -----------    -----------

$     11.28           2.8        $147,647            1.18           5.65            65
      11.59           7.2         173,836            1.09           6.26            84
      11.52           7.4         174,969            1.04           7.03            83
      11.51          (0.3)        213,769            0.97           6.87            63
      12.36           8.0         221,799            1.01           6.44            65

      11.28           2.1         141,188            1.93           4.90            65
      11.59           6.5         127,520            1.84           5.49            84
      11.51           6.5         100,353            1.79           6.28            83
      11.51          (1.1)         89,213            1.72           6.12            63
      12.36           7.2          64,240            1.76           5.69            65

      11.29           2.1           9,024            1.93           4.90            65
      11.60           6.5          11,470            1.84           5.52            84
      11.52           6.5          12,541            1.79           6.28            83
      11.52          (1.1)         14,872            1.72           6.12            63
      12.37           7.2           8,969            1.76           5.69            65

$     12.12          13.4        $ 76,338            1.25           3.90            52
      11.18           4.9          70,551            1.39           4.46           317
      11.18          12.9          70,909            1.41           5.69           622
      10.47          (6.4)         84,904            1.36           6.00           313
      11.90           9.0         103,032            1.38           5.80           106

      12.12          12.6          16,878            2.00           3.15            52
      11.17           4.1          13,249            2.14           3.71           317
      11.18          12.1          10,343            2.16           4.94           622
      10.47          (7.1)          9,430            2.11           5.25           313
      11.90           8.2           9,657            2.13           5.05           106

Financial Performance

For a share outstanding throughout each period.

                                             Income (loss) from investment operations:            Less distributions:
                                            -----------------------------------------   ------------------------------------------

                                Net asset
                                 value,                    Net realized                   Dividends    Distributions
                               beginning         Net      and unrealized   Total from     from net      from net
                                   of        investment   gain (loss) on   investment    investment     realized         Total
                               the period      income       investments    operations      income      capital gains  distributions
                               ----------   -------------  ------------  ------------   ------------   -----------     ----------
HIGH INCOME FUND
     Class A
   12/31/2002                  $   4.94     $    0.39(c)   $   (0.82)     $  (0.43)     $   (0.39)     $     --        $   (0.39)
   12/31/2001(d)                   6.21          0.66          (1.25)        (0.59)         (0.68)           --            (0.68)
   12/31/2000                      8.30          0.86          (2.11)        (1.25)         (0.84)           --            (0.84)
   12/31/1999                      8.86          0.89          (0.54)         0.35          (0.91)           --            (0.91)
   12/31/1998                      9.94          0.92          (1.08)        (0.16)         (0.92)           --            (0.92)

     Class B
   12/31/2002                      4.95          0.36(c)       (0.83)        (0.47)         (0.36)           --            (0.36)
   12/31/2001(d)                   6.22          0.62          (1.26)        (0.64)         (0.63)           --            (0.63)
   12/31/2000                      8.30          0.81          (2.11)        (1.30)         (0.78)           --            (0.78)
   12/31/1999                      8.85          0.82          (0.53)         0.29          (0.84)           --            (0.84)
   12/31/1998                      9.93          0.85          (1.08)        (0.23)         (0.85)           --            (0.85)


     Class C
   12/31/2002                      4.94          0.36(c)       (0.82)        (0.46)         (0.36)           --            (0.36)
   12/31/2001(d)                   6.22          0.61          (1.26)        (0.65)         (0.63)           --            (0.63)
   12/31/2000                      8.30          0.81          (2.11)        (1.30)         (0.78)           --            (0.78)
   12/31/1999                      8.85          0.82          (0.53)         0.29          (0.84)           --            (0.84)
   12/31/1998(e)                   9.96          0.69          (1.08)        (0.39)         (0.72)           --            (0.72)

LIMITED TERM U.S. GOVERNMENT FUND
     Class A
   12/31/2002                   $ 11.36     $    0.42(c)   $    0.49      $   0.91      $   (0.54)     $     --        $   (0.54)
   12/31/2001(d)                  11.16          0.51           0.25          0.76          (0.56)           --            (0.56)
   12/31/2000                     10.97          0.69           0.20          0.89          (0.70)           --            (0.70)
   12/31/1999                     11.70          0.66          (0.74)        (0.08)         (0.65)           --            (0.65)
   12/31/1998                     11.64          0.67           0.06          0.73          (0.67)           --            (0.67)

     Class B
   12/31/2002                     11.34          0.35(c)        0.48          0.83          (0.46)           --            (0.46)
   12/31/2001(d)                  11.14          0.44           0.24          0.68          (0.48)           --            (0.48)
   12/31/2000                     10.95          0.62           0.20          0.82          (0.63)           --            (0.63)
   12/31/1999                     11.69          0.59          (0.75)        (0.16)         (0.58)           --            (0.58)
   12/31/1998                     11.62          0.60           0.07          0.67          (0.60)           --            (0.60)

     Class C
   12/31/2002                     11.35          0.35(c)        0.48          0.83          (0.46)           --            (0.46)
   12/31/2001(d)                  11.15          0.44           0.24          0.68          (0.48)           --            (0.48)
   12/31/2000                     10.96          0.62           0.20          0.82          (0.63)           --            (0.63)
   12/31/1999                     11.70          0.59          (0.75)        (0.16)         (0.58)           --            (0.58)
   12/31/1998                     11.63          0.60           0.07          0.67          (0.60)           --            (0.60)

(a) A sales charge for Class A and Class C shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations. Periods less than one year are not annualized.

(b) Computed on an annualized basis for periods less than one year.

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

(d) As required, effective January 1, 2001, the Funds have adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium on debt securities. The effect of this change for the year ended December 31, 2001 for High Income Fund was to decrease net investment income per share by $.01 for Class A, Class B and Class C and to decrease the ratio of net investment income to average net assets from 11.39% to 11.31% for Class A, 10.64% to 10.56% for Class B and 10.63% to 10.54% for Class C. For Limited Term U.S. Government Fund, the effect of the change was to decrease net investment income per share by $.04 for Class A, Class B, Class C and to decrease the ratio of net investment income to average net assets from 4.88% to 4.52% for Class A, 4.22% to 3.85% for Class B and 4.25% to 3.89% for Class C. Per share, ratios and supplemental data for periods prior to January 1, 2001 have not been restated to reflect this change in presentation.

                                              Ratios to average net assets:
                                              -----------------------------

  Net asset                     Net assets,
   value,         Total           end of                    Net investment     Portfolio
   end of         return        the period      Expenses        income         turnover
 the period       (%) (a)          (000)         (%) (b)        (%) (b)        rate (%)
-----------     -----------    -----------     -----------    -----------    -----------

 $   4.12          (8.9)       $ 22,454            1.58           8.85           114
     4.94         (10.7)         33,471            1.47          11.31            65
     6.21         (16.1)         46,960            1.36          11.47            60
     8.30           4.0          74,589            1.28          10.22            89
     8.86          (1.8)         73,023            1.32           9.81            75

     4.12          (9.7)         23,031            2.33           8.10           114
     4.95         (11.3)         34,713            2.22          10.56            65
     6.22         (16.6)         47,793            2.11          10.72            60
     8.30           3.3          70,218            2.03           9.47            89
     8.85          (2.5)         60,322            2.07           9.06            75

     4.12          (9.5)          2,605            2.33           8.10           114
     4.94         (11.5)          4,153            2.22          10.54            65
     6.22         (16.6)          5,369            2.11          10.72            60
     8.30           3.3           9,138            2.03           9.47            89
     8.85          (4.1)          7,732            2.07           9.06            75

 $  11.73           8.2        $106,013            1.35           3.66            88
    11.36           6.9         109,189            1.42           4.52           275
    11.16           8.3         118,833            1.40           6.18           384
    10.97          (0.7)        149,756            1.33           5.91           400
    11.70           6.5         194,032            1.31           5.81         1,376

    11.71           7.5          16,263            2.00           3.01            88
    11.34           6.2          14,317            2.07           3.85           275
    11.14           7.7          11,884            2.05           5.53           384
    10.95          (1.4)         14,601            1.98           5.26           400
    11.69           5.9          18,116            1.96           5.16         1,376

    11.72           7.5           8,079            2.00           3.01            88
    11.35           6.2           5,851            2.07           3.89           275
    11.15           7.7           6,617            2.05           5.53           384
    10.96          (1.4)          9,054            1.98           5.26           400
    11.70           5.9          13,962            1.96           5.16         1,376

(e) For the period March 2, 1998 (inception) to December 31, 1998.

Financial Performance

For a share outstanding throughout each period.

                                             Income (loss) from investment operations:            Less distributions:
                                            -----------------------------------------   ------------------------------------------

                                Net asset
                                 value,                    Net realized                   Dividends    Distributions
                               beginning         Net      and unrealized   Total from     from net     from net
                                   of        investment   gain (loss) on   investment    investment    realized         Total
                               the period      income       investments    operations      income      capital gains  distributions
                               ----------   -------------  ------------  ------------   ------------   -----------     ----------
STRATEGIC INCOME FUND
     Class A
   12/31/2002                  $   9.88     $    0.75(b)   $    0.72      $   1.47      $   (0.63)     $      --       $   (0.63)
   12/31/2001(c)                  10.80          0.91(b)       (0.92)        (0.01)         (0.91)            --           (0.91)
   12/31/2000                     11.65          0.99(b)       (0.91)         0.08          (0.93)            --           (0.93)
   12/31/1999                     11.37          1.03           0.31          1.34          (1.02)         (0.04)          (1.06)
   12/31/1998                     13.42          1.05          (1.30)        (0.25)         (1.05)         (0.75)          (1.80)

     Class B
   12/31/2002                      9.88          0.67(b)        0.73          1.40          (0.57)            --           (0.57)
   12/31/2001(c)                  10.79          0.83(b)       (0.90)        (0.07)         (0.84)            --           (0.84)
   12/31/2000                     11.65          0.90(b)       (0.91)        (0.01)         (0.85)            --           (0.85)
   12/31/1999                     11.37          0.94           0.31          1.25          (0.93)         (0.04)          (0.97)
   12/31/1998                     13.42          0.95          (1.30)        (0.35)         (0.95)         (0.75)          (1.70)

     Class C
   12/31/2002                      9.87          0.67(b)        0.73          1.40          (0.57)            --           (0.57)
   12/31/2001(c)                  10.78          0.83(b)       (0.91)        (0.08)         (0.83)            --           (0.83)
   12/31/2000                     11.64          0.90(b)       (0.91)        (0.01)         (0.85)            --           (0.85)
   12/31/1999                     11.36          0.94           0.31          1.25          (0.93)         (0.04)          (0.97)
   12/31/1998                     13.41          0.95          (1.30)        (0.35)         (0.95)         (0.75)          (1.70)

(a) A sales charge for Class A and Class C shares and a contingent deferred sales charge for Class B and Class C shares are not reflected in total return calculations.

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

(c) As required, effective January 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium on debt securities. The effect of this change for the year ended December 31, 2001 was to decrease the ratio of net investment income to average net assets from 8.78% to 8.77% for Class A and 8.03% to 8.02% for Class B and 8.04% to 8.02 for Class C. There was no effect on net investment income per share. Per share, ratios and supplemental data for periods prior to January 1, 2001 have not been restated to reflect this change in presentation.

                                              Ratios to average net assets:
                                              -----------------------------

  Net asset                     Net assets,
   value,         Total           end of                    Net investment     Portfolio
   end of         return        the period      Expenses        income         turnover
 the period       (%) (a)          (000)          (%)            (%)           rate (%)
-----------     -----------    -----------     -----------    -----------    -----------
 $  10.72          15.5        $ 92,303            1.33           7.38            30
     9.88          (0.1)         94,156            1.31           8.77            10
    10.80           0.7         116,986            1.24           8.73            13
    11.65          12.2         124,869            1.21           9.09            19
    11.37          (1.7)        127,306            1.19           8.33            33

    10.71          14.6          98,501            2.08           6.63            30
     9.88          (0.8)        102,159            2.06           8.02            10
    10.79          (0.2)        120,200            1.99           7.98            13
    11.65          11.3         127,723            1.96           8.34            19
    11.37          (2.5)        134,049            1.94           7.58            33

    10.70          14.7          27,727            2.08           6.63            30
     9.87          (0.8)         28,925            2.06           8.02            10
    10.78          (0.2)         37,208            1.99           7.98            13
    11.64          11.3          40,265            1.96           8.34            19
    11.36          (2.5)         45,457            1.94           7.58            33

Glossary of Terms

Bid price -- The price a prospective buyer is ready to pay. This term is used by traders who maintain firm bid and offer prices in a given security by standing ready to buy or sell security units at publicly quoted prices.

Bottom-up analysis -- The analysis of potential performance of individual stocks before considering the impact of economic trends. Such companies may be identified from research reports, stock screens or personal knowledge of the products and services.

Capital gain distributions -- Payments to a Fund's shareholders of net profits earned from selling securities in a Fund's portfolio. Capital gain distributions are usually paid once a year.

Credit rating -- Independent evaluation of a bond's creditworthiness. This measurement is usually calculated through an index compiled by companies such as Standard & Poor's Rating Service, Inc. ("S&P"), Moody's Investors Service, Inc. ("Moody's"), or Fitch Investors Services, Inc. ("Fitch"). Bonds with a credit rating of BBB or higher by S&P or Fitch, or Baa or higher by Moody's, are generally considered investment grade.

Derivative -- A financial instrument whose value and performance are based on the value and performance of another security or financial instrument.

Discounted price -- The difference between a bond's current market price and its face or redemption value.

Diversification -- The strategy of investing in a wide range of securities representing different market sectors to reduce the risk if an individual company or one sector suffers losses.

Dividend yield -- The current or estimated annual dividend divided by the market price per share of a security.

Duration -- An estimate of how much a bond's price fluctuates with changes in comparable interest rates.

Earnings growth -- A pattern of increasing rates of growth in earnings per share from one period to another, which usually causes a stock's price to rise.

Fundamental analysis -- An analysis of the balance sheet and income statements of a company in order to forecast its future stock price movements. Fundamental analysis considers records of assets, earnings, sales, products, management and markets in predicting future trends in these indicators of a company's success or failure. By appraising a company's prospects, analysts using such an approach assess whether a particular stock or group of stocks is undervalued or overvalued at its current market price.

Income distributions -- Payments to a Fund's shareholders resulting from the net interest or dividend income earned by a Fund's portfolio.

Inflation -- A general increase in prices coinciding with a fall in the real value of money, as measured by the Consumer Price Index.

Interest rate -- Rate of interest charged for the use of money, usually expressed at an annual rate.

Market capitalization -- Market price multiplied by number of shares outstanding. Large capitalization companies generally have over $5 billion in market capitalization; medium cap companies between $1.5 billion and $5 billion; and small cap companies less than $1.5 billion. These capitalization figures may vary depending upon the index being used and/or the guidelines used by the portfolio manager.

Maturity -- The final date on which the payment of a debt instrument (e.g., bonds, notes, repurchase agreements) becomes due and payable. Short-term bonds generally have maturities of up to 5 years; intermediate-term bonds between 5 and 15 years; and long-term bonds over 15 years.

Net assets -- A Fund's assets minus its liabilities. With respect to the Funds that have a policy to invest 80% of their net assets in particular kinds of securities, "net assets" as used in such policies means net assets plus borrowings made for investment purposes.

Net asset value (NAV) per share -- The market value of one share of a Fund on any given day without taking into account any front-end sales charge or CDSC. It is determined by dividing a Fund's total net assets by the number of shares outstanding.

Rule 144A securities -- Rule 144A securities are privately offered securities that can be resold only to certain qualified institutional buyers. Rule 144A securities are treated as illiquid, unless a manager has determined, under guidelines established by a Fund's trustees, that a particular issue of Rule 144A securities is liquid.

Top-down approach -- The method in which an investor first looks at trends in the general economy, and next selects industries and then companies that the investor believes should benefit from those trends.

Total return -- The change in value of an investment in a Fund over a specific time period expressed as a percentage. Total returns assume all distributions are reinvested in additional shares of a Fund.

Value investing -- A relatively conservative investment approach that focuses on companies that may be temporarily out of favor or whose earnings or assets are not fully reflected in their stock prices. Value stocks will tend to have a lower price-to-earnings ratio than growth stocks.

Volatility -- The general variability of a portfolio's value resulting from price fluctuations of its investments. In most cases, the more diversified a portfolio is, the less volatile it will be.

Yield -- The rate at which a Fund earns income, expressed as a percentage. Mutual fund yield calculations are standardized, based upon a formula developed by the SEC.

Yield-to-maturity -- The concept used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond, is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield (the interest rate on a debt security the issuer promises to pay to the holder until maturity, expressed as an annual percentage of face value) and the time between interest payments.

Notes

Notes

If you would like more information about the Funds, the following documents are available free upon request:

Annual and Semiannual Reports -- Provide additional information about each Fund's investments. Each report includes a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal year.

Statement of Additional Information (SAI) -- Provides more detailed information about the Funds and their investment limitations and policies, has been filed with the SEC and is incorporated into this Prospectus by reference.

To order a free copy of the Funds' annual or semiannual report or their SAI, contact your financial representative, or the Funds at:

CDC IXIS Asset Management Distributors, L.P., 399 Boylston Street, Boston, MA 02116 Telephone: 800-225-5478 Internet: www.cdcnvestfunds.com

Important Notice Regarding Delivery of Shareholder Documents:

In our continuing effort to reduce your fund's expenses and the amount of mail that you receive from us, we combine mailings of prospectuses, annual or semiannual reports and proxy statements to your household. If more than one family member in your household owns the same fund or funds described in a single prospectus, report or proxy statement, you will receive one mailing unless you request otherwise. Additional copies of our prospectuses, reports or proxy statements may be obtained at anytime by calling 800-225-5478. If you are currently receiving multiple mailings to your household and would like to receive only one mailing or if you wish to receive separate mailings for each member of your household in the future, please call us at the telephone number listed above and we will resume separate mailings within 30 days of your request.

Your financial representative or CDC Nvest Funds will also be happy to answer your questions or to provide any additional information that you may require.

Information about the Funds, including their reports and SAI, can be reviewed and copied at the Public Reference Room of the SEC in Washington, D.C. Text-only copies of the Funds' reports and SAI are available free from the SEC's Internet site at: www.sec.gov. Copies of this information may also be obtained, after paying a duplicating fee, by electronic request at the following E-mail address:
publicinfo@sec.gov, or by writing the SEC's Public Reference Section, Washington, D.C. 20549-0102.

Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-202-942-8090.

CDC IXIS Asset Management Distributors, L.P., and other firms selling shares of CDC Nvest Funds are members of the National Association of Securities Dealers, Inc. (NASD). As a service to investors, the NASD has asked that we inform you of the availability of a brochure on its Public Disclosure Program. The program provides access to information about securities firms and their representatives.
Investors may obtain a copy by contacting the NASD at 800-289-9999 or by visiting its Web site at www.NASDR.com.

(Investment Company Act File No. 811-4323)

(Investment Company Act File No. 811-242)

What's Inside

Goals, Strategies & Risks..Page 2

Fund Fees & Expenses......Page 12

Management Team...........Page 16

Fund Services.............Page 18    CDC Nvest Income Funds--
                                          Class Y Shares
Financial Performance.....Page 26


[LOGO] LOOMIS-SAYLES A              CDC Nvest Bond Income  Fund
COMPANY, L.P.                       Loomis, Sayles & Company, L.P.

                                    CDC Nvest Government Securities Fund
                                    Loomis, Sayles & Company, L.P.

                                    CDC Nvest High Income Fund
                                    Loomis, Sayles & Company, L.P.

                                    CDC Nvest Limited Term U.S. Government Fund
                                    Loomis, Sayles & Company, L.P.

                                    CDC Nvest Strategic Income Fund
                                    Loomis, Sayles & Company, L.P.

                                                                      Prospectus
                                                                     May 1, 2003

The Securities and Exchange Commission has not approved any Fund's shares or determined whether this Prospectus is accurate or complete. Anyone who tells you otherwise is committing a crime.

For general information on the Funds or any of their services and for assistance in opening an account, contact your financial representative or call CDC Nvest Funds.

CDC Nvest Funds 399 Boylston Street, Boston, Massachusetts 02116 800-225-5478 www.cdcnvestfunds.com

Table of Contents

Goals, Strategies & Risks

CDC Nvest Bond Income Fund ................................................    2
CDC Nvest Government Securities Fund ......................................    4
CDC Nvest High Income Fund ................................................    6
CDC Nvest Limited Term U.S. Government Fund ...............................    8
CDC Nvest Strategic Income Fund ...........................................   10

Fund Fees & Expenses

Fund Fees & Expenses ......................................................   12

More About Risk

More About Risk ...........................................................   14

Management Team

Meet the Funds' Investment Adviser and Subadviser .........................   16
Meet the Funds' Portfolio Managers ........................................   17

Fund Services

It's Easy to Open an Account ..............................................   18
Buying Shares .............................................................   19
Selling Shares ............................................................   20
Selling Shares in Writing .................................................   21
Exchanging Shares .........................................................   22
Restrictions on Buying, Selling and Exchanging Shares .....................   22
How Fund Shares Are Priced ................................................   23
Dividends and Distributions ...............................................   24
Tax Consequences ..........................................................   24
Compensation to Securities Dealers ........................................   25

Financial Performance

Financial Performance .....................................................   26

Glossary of Terms

Glossary of Terms .........................................................   28

If you have any questions about any of the terms used in this Prospectus, please refer to the "Glossary of Terms."

To learn more about the possible risks of investing in the Funds, please refer to the section entitled "More About Risk." This section details the risks of practices in which the Funds may engage. Please read this section carefully before you invest.

Fund shares are not bank deposits and are not guaranteed, endorsed or insured by the Federal Deposit Insurance Corporation or any other government agency, and are subject to investment risks, including possible loss of the principal invested.

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of two broad measures of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on June 2001. This chart and table reflect results achieved by the previous subadviser under different investment policies for periods prior to June 2001. The Fund's performance may have been different under its current advisory arrangements and investment policies.

The bar chart shows the Fund's total returns for Class Y shares for each calendar year since its first full year of operations.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

                                    (total return)
1995       1996        1997        1998         1999        2000        2001        2002
20.70%     4.59%      11.40%       8.26%       -0.01%       7.60%       7.80%       3.45%

The table below shows how the average annual total returns (before and after taxes) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers Aggregate Bond Index, an unmanaged index of investment-grade bonds with one- to ten-year maturities issued by the U.S. government and U.S. corporations. They are also compared to the Lehman Brothers U.S. Credit Index, an unmanaged index that includes all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC-registered, investment-grade corporate debt. You may not invest directly in an index. The Fund's total returns reflect the expenses of the Fund's Class Y shares. Class Y total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Lehman Brothers Aggregate Bond Index and Lehman Brothers U.S. Credit Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

--------------------------------------------------------------------------------------------------
                                                                                     Since Class
   Average Annual Total Returns                                                       Inception
   (for the periods ended December 31, 2002)          Past 1 Year    Past 5 Years     (12/30/94)
--------------------------------------------------------------------------------------------------
   Class Y - Return Before Taxes                          3.45%          5.37%           7.82%
       Return After Taxes on Distributions*               1.08%          2.53%           4.88%
       Return After Taxes on Distributions &
         Sales of Fund Shares*                            2.06%          2.87%           4.85%
   Lehman Brothers Aggregate Bond Index**                10.25%          7.55%           8.61%
--------------------------------------------------------------------------------------------------
   Lehman Brothers U.S. Credit Index**                   10.53%          7.28%           8.90%
--------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts.

** The returns of each Index do not reflect the effect of taxes.

The returns of each Index are calculated from 12/31/94.

For past expenses of Class Y shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on June 2001. This chart and table reflect results achieved by the previous subadviser under different investment policies for periods prior to June 2001. The Fund's performance may have been different under its current advisory arrangements and investment policies.

The bar chart shows the Fund's total returns for Class Y shares for each calendar year since its first full year of operations.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

                                    (total return)
1995       1996        1997        1998         1999        2000        2001        2002
20.31%     1.12%      10.51%       9.31%       -6.28%      13.50%       5.32%      13.70%

The table below shows how the average annual total returns (before and after taxes) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers Government Bond Index ("Lehman Gov't Bond Index"), an unmanaged index of public debt of the U.S. Treasury, government agencies and their obligations. You may not invest directly in an index. The Fund's total returns reflect the expenses of the Fund's Class Y shares. Class Y total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Funds shares. The Lehman Gov't. Bond Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

--------------------------------------------------------------------------------------------------
                                                                                     Since Class
   Average Annual Total Returns                                                       Inception
   (for the periods ended December 31, 2002)          Past 1 Year    Past 5 Years      (3/31/94)
--------------------------------------------------------------------------------------------------
   Class Y - Return Before Taxes                          13.70%         6.84%           7.18%
       Return After Taxes on Distributions*               11.64%         4.50%           4.66%
       Return After Taxes on Distributions &
         Sales of Fund Shares*                             8.33%         4.28%           4.47%
--------------------------------------------------------------------------------------------------
   Lehman Gov't Bond Index**                              11.50%         7.77%           7.81%
--------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts.

** The returns of the Index do not reflect the effect of taxes.

For past expenses of Class Y shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The returns shown are those of the Fund's Class A shares which are not offered in this Prospectus. This is because Class Y shares were not outstanding during the periods shown. Class Y shares would have substantially similar annual returns because they are invested in the same portfolio of securities as Class A shares and would only differ to the extent that the classes do not have the same expenses. The Class Y returns may be higher than the returns of Class A shares because Class A shares are subject to sales charges and higher expenses. The Fund's current subadviser assumed that function on July 1, 1996. This chart and table reflect results achieved by the previous subadviser using different investment policies for periods prior to July 1, 1996. The Fund's performance may have been different under its current advisory arrangements and investment policies.

The bar chart shows the Fund's total returns for Class A shares for each of the last ten calendar years. The returns for Class Y shares differ from the Class A returns shown in the bar chart to the extent their respective expenses differ. The chart does not reflect any sales charge that you may be required to pay when you buy or redeem the Fund's shares. A sales charge will reduce your return.

                                    (total return)
1993       1994       1995       1996        1997        1998         1999       2000        2001        2002
16.52%    -3.22%     11.78%      14.88%      15.37%     -1.70%        4.00%     -16.09%     -10.65%      -8.86%

The table below shows how the average annual total returns (before and after taxes) of the Fund's Class A shares for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers High Yield Composite Index, a market-weighted unmanaged index of fixed-rate, non-investment grade debt. You may not invest directly in an index. The Fund's total returns reflect its expenses and the maximum sales charge that you may be required to pay when you buy or redeem the Fund's shares. Class A total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Lehman Brothers High Yield Composite Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

--------------------------------------------------------------------------------------------------

   Average Annual Total Returns
   (for the periods ended December 31, 2002)          Past 1 Year    Past 5 Years   Past 10 Years
--------------------------------------------------------------------------------------------------
   Class A - Return Before Taxes                          -12.91%        -7.78%          1.08%
       Return After Taxes on Distributions*               -15.84%       -11.48%         -2.76%
       Return After Taxes on Distributions &
         Sales of Fund Shares*                             -7.90%        -7.29%         -0.66%
   Lehman Brothers High Yield Composite Index**            -1.41%         0.38%          5.86%
--------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts. In some cases the after-tax returns may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of fund shares at the end of the measurement period.

** The returns of the Index do not reflect the effect of taxes.

Class A commenced operations 2/22/84.

For estimated expenses of Class Y shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of a broad measure of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. The Fund's current subadviser assumed that function on June 2001. This chart and table reflect results achieved by the previous subadviser under different investment policies for periods prior to June 2001. The Fund's performance may have been different under its current advisory arrangements and investment policies.

The bar chart shows the Fund's total returns for Class Y shares for each calendar year since its first full year of operations.

[THE FOLLOWING TABLE WAS REPRESENTED BY A BAR CHART IN THE PRINTED MATERIAL.]

                                    (total return)
1995       1996        1997        1998         1999        2000        2001        2002
13.35%     2.73%       7.53%       6.91%       -0.32%       8.82%       7.41%       8.62%

The table below shows how the average annual total returns (before and after taxes) for the one-year, five year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers Intermediate Government Bond Index ("Lehman Int. Gov't Bond Index"), an unmanaged index of bonds issued by the U.S. government and its agencies having maturities between one and ten years. You may not invest directly in an index. The Fund's total returns reflect the expenses of the Fund's Class Y shares. Class Y total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Lehman Int. Gov't Bond Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

--------------------------------------------------------------------------------------------------
                                                                                     Since Class
   Average Annual Total Returns                                                       Inception
   (for the periods ended December 31, 2002)         Past 1 Year     Past 5 Years     (3/31/94)
--------------------------------------------------------------------------------------------------
   Class Y - Return Before Taxes                          8.62%          6.23%           6.18%
       Return After Taxes on Distributions*               6.51%          3.82%           3.57%
       Return After Taxes on Distributions &
         Sales of Fund Shares*                            5.24%          3.76%           3.61%
--------------------------------------------------------------------------------------------------
   Lehman Int. Gov't Bond Index**                         9.64%          7.44%           7.20%
--------------------------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts.

** The returns of the Index do not reflect the effect of taxes.

For past expenses of Class Y shares, see the section entitled "Fund Fees & Expenses."

Evaluating the Fund's Past Performance

The bar chart and table shown below give an indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual returns for the one-year, five-year and ten-year periods (or since inception if shorter) compare with those of two broad measures of market performance. The Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

The bar chart shows the Fund's total returns for Class Y shares for each calendar year since its first full year of operations.

                                    (total return)
2000       2001        2002
 1.04%     0.33%      15.85%

The table below shows how the average annual total returns (before and after taxes) for the one-year, five-year and ten-year periods (or since inception if shorter) compare to those of the Lehman Brothers Aggregate Bond Index, an unmanaged index of investment-grade bonds with one- to ten year maturities issued by the U.S. government, its agencies and U.S. corporations. They are also compared to the Lehman Brothers Universal Bond Index, an unmanaged index representing a blend of the Lehman Aggregate, High Yield and Emerging Market Indexes. You may not invest directly in an index. The Fund's total returns reflect the expenses of the Fund's Class Y shares. Class Y total returns have also been calculated to reflect return after taxes on distributions only and also return after taxes on distributions and sales of Fund shares. The Lehman Brothers Aggregate Bond Index and the Lehman Brothers Universal Bond Index returns have not been adjusted for ongoing management, distribution and operating expenses and sales charges applicable to mutual fund investments.

--------------------------------------------------------------------------------
                                                                    Since
   Average Annual Total Returns                                Class Inception
   (for the periods ended December 31, 2002)     Past 1 Year      (12/1/99)
--------------------------------------------------------------------------------
   Class Y - Return Before Taxes                     15.85%         6.25%
       Return After Taxes on Distributions*          12.95%         2.93%
       Return After Taxes on Distributions &
         Sales of Fund Shares*                        9.58%         3.29%
   Lehman Brothers Aggregate Bond Index**            10.25%         7.07%
--------------------------------------------------------------------------------
   Lehman Brothers Universal Bond Index**             9.83%         9.58%
--------------------------------------------------------------------------------

* After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans, qualified plans, education savings accounts such as 529 plans or individual retirement accounts.

** The returns of each Index do not reflect the effect of taxes.

The returns of each Index are calculated from 12/31/99.

For past expenses of Class Y shares, see the section entitled "Fund Fees & Expenses."

Financial Performance

The financial highlights tables are intended to help you understand each Fund's financial performance for the last five years (or, if shorter, the period of the Fund's operations). Certain information reflects financial results for a single Fund share. The total returns in the table represent the return that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, independent accountants, whose report, along with each Fund's financial statements, are incorporated by reference in the SAI, which is available without charge upon request.

For a share outstanding throughout each period.

                                                Income (loss)
                                          from investment operations:                       Less distributions:
                                      --------------------------------------  ---------------------------------------------

                          Net asset
                            value,                Net realized                  Dividends    Distributions
                          beginning       Net    and unrealized   Total from      from          from net
                              of      investment gain (loss) on   investment  net investment    realized          Total
                          the period    income     investments    operations      income      capital gains   distributions
                          ----------  ---------- --------------   ----------  -------------- --------------  --------------
BOND INCOME FUND
    Class Y
   12/31/2002               $11.63      $ 0.69(f)     $(0.32)       $ 0.37        $(0.67)       $   --          $(0.67)
   12/31/2001(c)             11.54        0.79          0.10          0.89         (0.80)           --           (0.80)
   12/31/2000                11.54        0.83          0.01          0.84         (0.84)           --           (0.84)
   12/31/1999                12.38        0.85         (0.86)        (0.01)        (0.82)        (0.01)          (0.83)
   12/31/1998                12.41        0.84          0.15          0.99         (0.84)        (0.18)          (1.02)

GOVERNMENT SECURITIES
FUND
    Class Y
   12/31/2002                11.17        0.49(f)       1.00          1.49         (0.55)           --           (0.55)
   12/31/2001(c)             11.17        0.55          0.04          0.59         (0.59)           --           (0.59)
   12/31/2000                10.44        0.65          0.71          1.36         (0.63)           --           (0.63)
   12/31/1999                11.88        0.70         (1.43)        (0.73)        (0.71)           --           (0.71)
   12/31/1998                11.54        0.72          0.32          1.04         (0.70)           --           (0.70)

LIMITED TERM U.S.
GOVERNMENT FUND
    Class Y
   12/31/2002                11.41        0.48(f)       0.48          0.96         (0.59)           --           (0.59)
   12/31/2001(c)             11.20        0.56          0.26          0.82         (0.61)           --           (0.61)
   12/31/2000                11.00        0.75          0.19          0.94         (0.74)           --           (0.74)
   12/31/1999                11.73        0.70         (0.74)        (0.04)        (0.69)           --           (0.69)
   12/31/1998                11.66        0.72          0.06          0.78         (0.71)           --           (0.71)

STRATEGIC INCOME FUND
    Class Y
   12/31/2002                 9.90        0.80(f)       0.71          1.51         (0.67)           --           (0.67)
   12/31/2001(c)             10.81        0.94(f)      (0.92)         0.02         (0.93)           --           (0.93)
   12/31/2000                11.65        0.96(f)      (0.84)         0.12         (0.96)           --           (0.96)
   12/31/1999(e)             11.45        0.86         (0.56)         0.30         (0.10)           --           (0.10)

(a) Periods less than one year are not annualized.

(b) Computed on an annualized basis for periods less than one year.

(c) As required, effective January 1, 2001, the Funds have adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium on debt securities. The effect of this change for the year ended December 31, 2001 for Bond Income Fund was to decrease the ratio of net investment income to average net assets from 6.75% to 6.68%. For Government Securities Fund, the effect of this change was to decrease net investment income per share by $0.04 per share and to decrease the ratio of net investment income to average net assets from 5.24% to 4.85%. For Limited Term U.S. Government Fund, the effect of this change was to decrease net investment income per share by $0.04 and to decrease the ratio of net investment income to average net assets from 5.34% to 4.98%. For Strategic Income Fund there was no effect of this change. Per share, ratios and supplemental data for periods prior to January 1, 2001 have not been restated to reflect this change in presentation.

                                                   Ratios to average net assets:
                                                   -----------------------------

 Net asset                          Net assets,
  value,          Total               end of                     Net investment    Portfolio
  end of         return             the period       Expenses        income         turnover
the period       (%) (a)               (000)         (%) (b)         (%) (b)        rate (%)
----------      ---------           -----------    -----------   ---------------   ----------
$   11.33          3.5              $  18,346          0.67            6.15              65
    11.63          7.8                 17,351          0.67            6.68              84
    11.54          7.6                 14,013          0.67            7.40              83
    11.54         (0.0)(d)             10,320          0.72            7.12              63
    12.38          8.2                  9,289          0.76            6.69              65

    12.11         13.7                  6,822          0.87            4.28              52
    11.17          5.3                  4,821          1.00            4.85             317
    11.17         13.5                  4,593          1.01            6.09             622
    10.44         (6.3)                 2,754          1.11            6.25             313
    11.88          9.3                  3,404          1.13            6.05             106

    11.78          8.6                  8,529          0.88            4.14              88
    11.41          7.4                  3,441          0.95            4.98             275
    11.20          8.8                  3,254          0.95            6.63             384
    11.00         (0.3)                 7,086          0.98            6.26             400
    11.73          6.9                  8,345          0.96            6.16           1,351

    10.74         15.9                  1,039          0.94            7.77              30
     9.90          0.3                    445          0.93            9.10              10
    10.81          1.0                    335          0.90            9.07              13
    11.65          2.7                     --(g)       0.96            9.34              19

(d) Amount is less than one tenth of one percent.

(e) For the period December 1, 1999 (inception) through December 31, 1999.

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

(g) Amount is less than $500.

Glossary of Terms

Bid price -- The price a prospective buyer is ready to pay. This term is used by traders who maintain firm bid and offer prices in a given security by standing ready to buy or sell security units at publicly quoted prices.

Bottom-up analysis -- The analysis of potential performance of individual stocks before considering the impact of economic trends. Such companies may be identified from research reports, stock screens or personal knowledge of the products and services.

Capital gain distributions -- Payments to a Fund's shareholders of net profits earned from selling securities in a Fund's portfolio. Capital gain distributions are usually paid once a year.

Credit rating -- Independent evaluation of a bond's creditworthiness. This measurement is usually calculated through an index compiled by companies such as Standard & Poor's Rating Service, Inc. ("S&P"), Moody's Investors Service, Inc. ("Moody's"), or Fitch Investors Services, Inc. ("Fitch"). Bonds with a credit rating of BBB or higher by S&P or Fitch, or Baa or higher by Moody's, are generally considered investment grade.

Derivative -- A financial instrument whose value and performance are based on the value and performance of another security or financial instrument.

Discounted price -- The difference between a bond's current market price and its face or redemption value.

Diversification -- The strategy of investing in a wide range of securities representing different market sectors to reduce the risk if an individual company or one sector suffers losses.

Dividend yield -- The current or estimated annual dividend divided by the market price per share of a security.

Duration -- An estimate of how much a bond's price fluctuates with changes in comparable interest rates.

Earnings growth -- A pattern of increasing rates of growth in earnings per share from one period to another, which usually causes a stock's price to rise.

Fundamental analysis -- An analysis of the balance sheet and income statements of a company in order to forecast its future stock price movements. Fundamental analysis considers records of assets, earnings, sales, products, management and markets in predicting future trends in these indicators of a company's success or failure. By appraising a company's prospects, analysts using such an approach assess whether a particular stock or group of stocks is undervalued or overvalued at its current market price.

Growth investing -- An investment style that emphasizes companies with strong earnings growth. Growth investing is generally considered more aggressive than "value" investing.

Income distributions -- Payments to a Fund's shareholders resulting from the net interest or dividend income earned by a Fund's portfolio.

Inflation -- A general increase in prices coinciding with a fall in the real value of money, as measured by the Consumer Price Index.

Interest rate -- Rate of interest charged for the use of money, usually expressed at an annual rate.

Market capitalization -- Market price multiplied by number of shares outstanding. Large capitalization companies generally have over $5 billion in market capitalization; medium cap companies between $1.5 billion and $5 billion; and small cap companies less than $1.5 billion. These capitalization figures may vary depending upon the index being used and/or the guidelines used by the portfolio manager.

Maturity -- The final date on which the payment of a debt instrument (e.g., bonds, notes, repurchase agreements) becomes due and payable. Short-term bonds generally have maturities of up to 5 years; intermediate-term bonds between 5 and 15 years; and long-term bonds over 15 years.

Net assets -- A Fund's assets minus its liabilities. With respect to the Funds that have a policy to invest 80% of their net assets in particular kinds of securities, "net assets" as used in such policies means net assets plus borrowings made for investment purposes.

Net asset value (NAV) per share -- The market value of one share of a Fund on any given day without taking into account any front-end sales charge or CDSC. It is determined by dividing a Fund's total net assets by the number of shares outstanding.

Rule 144A securities -- Rule 144A securities are privately offered securities that can be resold only to certain qualified institutional buyers. Rule 144A securities are treated as illiquid, unless a manager has determined, under guidelines established by a Fund's trustees, that a particular issue of Rule 144A securities is liquid.

Top-down approach -- The method in which an investor first looks at trends in the general economy, and next selects industries and then companies that the investor believes should benefit from those trends.

Total return -- The change in value of an investment in a Fund over a specific time period expressed as a percentage. Total returns assume all distributions are reinvested in additional shares of a Fund.

Value investing -- A relatively conservative investment approach that focuses on companies that may be temporarily out of favor or whose earnings or assets are not fully reflected in their stock prices. Value stocks will tend to have a lower price-to-earnings ratio than growth stocks.

Volatility -- The general variability of a portfolio's value resulting from price fluctuations of its investments. In most cases, the more diversified a portfolio is, the less volatile it will be.

Yield -- The rate at which a Fund earns income, expressed as a percentage. Mutual fund yield calculations are standardized, based upon a formula developed by the SEC.

Yield-to-maturity -- The concept used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond, is held to its maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield (the interest rate on a debt security the issuer promises to pay to the holder until maturity, expressed as an annual percentage of face value) and the time between interest payments.

Notes

Notes

If you would like more information about the Funds, the following documents are available free upon request:

Annual and Semiannual Reports -- Provide additional information about each Fund's investments. Each report includes a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal year.

Statement of Additional Information (SAI) -- Provides more detailed information about the Funds and their investment limitations and policies, has been filed with the SEC and is incorporated into this Prospectus by reference.

To order a free copy of the Funds' annual or semiannual report or their SAI, contact your financial representative, or the Funds at:

CDC IXIS Asset Management Distributors, L.P., 399 Boylston Street, Boston, MA 02116 Telephone: 800-225-5478 Internet: www.cdcnvestfunds.com

Important Notice Regarding Delivery of Shareholder Documents:

In our continuing effort to reduce your fund's expenses and the amount of mail that you receive from us, we combine mailings of prospectuses, annual or semiannual reports and proxy statements to your household. If more than one family member in your household owns the same fund or funds described in a single prospectus, report or proxy statement, you will receive one mailing unless you request otherwise. Additional copies of our prospectuses, reports or proxy statements may be obtained at anytime by calling 800-225-5478. If you are currently receiving multiple mailings to your household and would like to receive only one mailing or if you wish to receive separate mailings for each member of your household in the future, please call us at the telephone number listed above and we will resume separate mailings within 30 days of your request.

Your financial representative or CDC Nvest Funds will also be happy to answer your questions or to provide any additional information that you may require.

Information about the Funds, including their reports and SAI, can be reviewed and copied at the Public Reference Room of the SEC in Washington, D.C.

Text-only copies of the Funds' reports and SAI are available free from the SEC's Internet site at: www.sec.gov.

Copies of this information may also be obtained, after paying a duplicating fee, by electronic request at the following E-mail address: publicinfo@sec.gov, or by writing the SEC's Public Reference Section, Washington, D.C. 20549-0102.

Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-202-942-8090.

CDC IXIS Asset Management Distributors, L.P., and other firms selling shares of CDC Nvest Funds are members of the National Association of Securities Dealers, Inc. (NASD). As a service to investors, the NASD has asked that we inform you of the availability of a brochure on its Public Disclosure Program. The program provides access to information about securities firms and their representatives.
Investors may obtain a copy by contacting the NASD at 800-289-9999 or by visiting its Web site at www.NASDR.com.

(Investment Company Act File No. 811-4323)

(Investment Company Act File No. 811-242)

YB51-0503

CDC Nvest Balanced Fund

CDC Nvest Jurika & Voyles Relative Value Fund CDC Nvest Jurika & Voyles Small Cap Growth Fund CDC Nvest Large Cap Value Fund
CDC Nvest Short Term Bond Fund
(collectively, the "Funds")

PROSPECTUS
MAY 1, 2003

For CDC Nvest Balanced Fund, CDC Nvest Jurika & Voyles Relative Value Fund, CDC Nvest Jurika & Voyles Small Cap Growth Fund and CDC Nvest Large Cap Value Fund, the CDC Nvest Equity Funds Classes A, B, and C prospectus dated May 1, 2002 as revised July 1, 2002, as supplemented on July 1, 2002, September 10, 2002, September 16, 2002, November 25, 2002, December 27, 2002, February 25, 2003, March 13, 2003, and March 19, 2003, and the CDC Nvest Equity Funds Class Y prospectus dated May 1, 2002, as supplemented on July 1, 2002, November 25, 2002, December 27, 2002, February 25, 2003, March 13, 2003, and March 19, 2003 are incorporated herein by reference.

For the CDC Nvest Short Term Bond Fund, the CDC Nvest Income Funds Classes A, B and C prospectus dated May 1, 2002, as supplemented on August 27, 2002, December 27, 2002, March 13, 2003, and March 31, 2003 is incorporated herein by reference.

The financial statements of the Funds and the related reports of independent accountants included in the Funds' annual reports to shareholders for the year ended December 31, 2002 are incorporated herein by reference. Each Fund's annual and semiannual reports are available upon request and without charge. Each Fund will send a single copy of its annual and semiannual reports to an address at which more than one shareholder of record with the same last name has indicated that mail is to be delivered. Shareholders may request additional copies of any annual or semiannual report by telephone at (800) 225-5478 or by writing to the Distributor at: CDC IXIS Asset Management Distributors, L.P., 399 Boylston Street, Boston, Massachusetts 02116. The annual and semi-annual reports are also available on-line at the SEC's website, at www.sec.gov.

The Funds' shares are not available for purchase by prospective or current shareholders, through the reinvestment of distributions or otherwise.

[LOGO] CDC NVEST FUNDS(SM)

CDC IXIS Asset Management Distributors

CDC NVEST AEW REAL ESTATE FUND           CDC NVEST LARGE CAP GROWTH FUND
CDC NVEST CAPITAL GROWTH FUND            CDC NVEST SELECT FUND
CDC NVEST GROWTH AND INCOME FUND         CDC NVEST TARGETED EQUITY FUND
CDC NVEST INTERNATIONAL EQUITY FUND