<PAGE>
LOOMIS SAYLES FUNDS
- ------------------------------------------------------------------------------
TO OUR SHAREHOLDERS:
The first half of 1996 was a noisy period in terms of commentary on the
economy and the markets. However, the noise level was higher than what was
justified by the underlying fundamentals. After the spectacular returns of
1995, the good returns on equities during the first half of 1996 were not
quite as exciting. Nevertheless, they were far above the historical norms.
Bonds actually showed some price declines.
The U.S. economy has been showing consistent signs of improvement for a
number of months now. The same is not true of Europe. Japan is recovering and
the boom in southeast Asia continues but at a less frenetic pace. The economic
acceleration in the United States, combined with the recovery in Japan, has
caused many to fear a commodity price-led inflation. That just hasn't
happened. What has happened is that a number of signs of labor cost inflation
in the United States have been appearing. If the economy continues along its
current track, it is reasonable to expect some cyclical increase in inflation
rates for a while. However, there is nothing in the current outlook to
indicate that any major market in the world is about to run out of money,
people or things. In other words, while there may well be a cyclical boost in
inflation rates, a secular upward trend is not likely unless the various
central banks decide to finance it. That does not appear to be in the cards at
this time.
The major theme of peace and moderate government spending that I discussed
at year end continues. As long as this environment persists, the capital
markets should do reasonably well. The private sector of the economy can
continue to grow until such time as the government sector starts to take the
money away through its own spending. One of the less noted by-products of
above trend growth in the private sector is that government deficits fall as
tax collections rise and income support payments decline. It is quite common
for financial commentators to say that a strong economy is bad for the
financial markets. That is just not so. What is bad for the financial markets
is a period of sustained and rising inflation. Strong economies, up to a
point, can actually help hold down long-term inflation rates if government
finances and central bank policies are responsible. The trends certainly seem
to be in that direction and should provide a stable underlying fundamental
environment for the markets.
There is one other noteworthy development in the financial markets. In the
United States, in-flows to equity mutual funds have been record breakers, to
say the least. As this letter is written, that situation seems to be changing.
The open question is whether the in-flows will drop to such a degree that
stock market valuation levels will decline precipitously. At this point, we
just don't know the answer. Another noteworthy occurrence has been an outbreak
of various speculative moves in the commodities and bond markets. The
newspapers have done a good job of reporting these so I won't detail them
other than to call attention to the recent price moves in copper and U.S.
Treasury bonds. The "market noise" that results from these activities should
not be confused with the underlying fundamentals. However, we constantly keep
in mind that the noise can feed back to the fundamentals if it persists long
enough. In other words, speculative activity can de-stabilize the fundamentals
if it gets out of hand. I am sure the Federal Reserve has the same concern and
is watching things carefully.
Overall, despite some of the speculative risks in the market, we feel
comfortable with the current environment and the positioning of each of the
portfolios. Individual comments from each of the portfolio managers go into a
bit more detail.
Sincerely,
[S/ Daniel J. Fuss]
President
August 16, 1996
<PAGE>
<TABLE>
TOTAL RETURN(1)
LOOMIS SAYLES FUNDS VS LIPPER CATEGORY(2)
<CAPTION>
6 MONTHS ENDED
6/30/96 1 YEAR 3 YEARS 5 YEARS
-------------- -------------- -------------- --------------
LOOMIS LIPPER LOOMIS LIPPER LOOMIS LIPPER LOOMIS LIPPER
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Growth Fund ................................. 12.18 10.08 23.62 22.20 13.64 14.89 15.10 14.57
Growth & Income Fund ........................ 7.14 9.24 20.22 22.13 15.41 14.43 14.57 14.25
Small Cap Fund .............................. 15.85 15.12 36.55 29.71 17.22 17.84 21.25 18.84
International Equity Fund ................... 7.98 8.03 6.49 15.48 12.67 12.25 10.69 11.02
Worldwide Fund .............................. 1.20 N/A N/A N/A N/A N/A N/A N/A
Bond Fund ................................... 0.62 -2.30 11.70 4.59 11.15 5.44 14.58 9.41
Global Bond Fund ............................ 5.71 1.69 23.20 8.67 9.24 5.82 11.06 8.27
U.S. Government Securities Fund ............. -4.67 -2.62 3.48 3.48 4.77 3.73 9.79 7.13
Municipal Bond Fund ......................... -1.49 -1.38 5.81 5.67 4.20 4.12 7.37 7.34
Short-Term Bond Fund ........................ 0.93 1.18 4.85 5.05 5.11 4.55 N/A N/A
TOTAL RETURN(1)
LOOMIS SAYLES FUNDS VS LIPPER CATEGORY(2)
<CAPTION>
FROM MODIFIED
INCEPTION LOOMIS SAYLES RANK
TO 6/30/96(3) IN LIPPER CATEGORY FROM ACTUAL
-------------- ---------------------- INCEPTION
LOOMIS LIPPER RANK PERCENTILE (LOOMIS SAYLES ONLY) (4)
------ ------ ---------- ---------- ------------------------
<S> <C> <C> <C> <C> <C>
Growth Fund ................................. 13.18 13.14 126/245 51st 14.45
Growth & Income Fund ........................ 13.01 13.04 107/202 53rd 14.06
Small Cap Fund .............................. 20.02 17.28 20/87 23rd 20.32
International Equity Fund ................... 9.42 9.69 33/65 51st 9.20
Worldwide Fund .............................. 1.20 N/A N/A N/A 1.20
Bond Fund ................................... 13.98 9.23 1/28 1st 13.77
Global Bond Fund ............................ 9.89 7.70 6/36 17th 9.78
U.S. Government Securities Fund ............. 9.56 6.97 1/67 1st 9.57
Municipal Bond Fund ......................... 7.26 7.15 42/101 42nd 7.32
Short-Term Bond Fund ........................ 5.34 4.81 7/34 21st 5.35
- -----------
Note: Past performance is not predictive of future performance.
(1) Total return assumes reinvestment of dividends and capital gains distributions. Total return shown for periods of one year
or less represents cumulative total return. Total return for periods greater than one year represents average annual
total return.
(2) Lipper category total return represents the average total return of all funds in each Fund's corresponding investment category,
as determined by Lipper Analytical Services, Inc. Rankings are based on the total return of each Fund for the period from its
modified inception relative to the total return of all funds in the Fund's corresponding investment category, as defined by
Lipper Analytical Services, Inc.
(3) Modified inception reflects total return for the first available reporting period following actual inception. For the Short-
Term Bond Fund modified inception begins in August 1992, for the Worldwide Fund in May 1996, and for all others in May 1991.
(4) Actual Inception Dates:
Growth Fund ................................................................................... May 16, 1991
Growth & Income Fund .......................................................................... May 13, 1991
Small Cap Fund ................................................................................ May 16, 1991
International Equity Fund ..................................................................... May 10, 1991
Worldwide Fund ................................................................................ May 1, 1996
Bond Fund ..................................................................................... May 16, 1991
Global Bond Fund .............................................................................. May 10, 1991
U.S. Government Securities Fund ............................................................... May 21, 1991
Municipal Bond Fund ........................................................................... May 29, 1991
Short-Term Bond Fund .......................................................................... August 3, 1992
Source: Lipper Analytical Services
</TABLE>
<PAGE>
STOCK FUNDS
LOOMIS SAYLES GROWTH FUND
The Fund's portfolio manager is Jerome A. Castellini.
During the first quarter, the "flight to safety" market that had impacted
performance at year-end showed signs of coming to a close. Coke, Gillette, Merck
and other very large companies, which were the beneficiaries of the resulting
rally, appeared to be at unsustainable valuation levels. Those smaller, rapidly
growing companies such as Oracle and Medtronic did not participate in the early
part of the rally and as such our relative performance suffered. However, the
market's move away from very large growth companies at the end of the second
quarter, combined with the strength of our energy holdings, helped performance.
Growth from companies expected to grow faster than 20% over the next five
years powered our performance later in the period. Our emphasis on niche
retailers (Starbucks and Petsmart), technology companies (Cascade and Microsoft)
and energy companies (Schlumberger and Enron) paid off.
Disappointments included Biogen, Airtouch and Morton.
At the end of the quarter, we cut back close to 30% of our technology
holdings in order to take gains and await the time when we can buy back those
stocks with good prospects at lower prices in the future. In addition, we hope
that Wall Street will notice energy stocks as evidence of tight oil and gas
markets mounts. At this writing, the long awaited market "correction" seems to
be happening. Readers should note that the correction in NASDAQ stocks began in
June and through the first two weeks in July it was already approaching 15% on
the indices. The fact that we are fairly well advanced in the sell-off of these
stocks makes us a bit less worried for the second half of the year.
LOOMIS SAYLES GROWTH & INCOME FUND
The Fund's portfolio manager is Jeffrey W. Wardlow.
During the first half of 1996, the Loomis Sayles Growth & Income Fund had a
total return of 7.1%, lagging the S&P 500 total return of 10.1%. Results were
negatively impacted by a relatively low exposure in the technology and consumer
staple groups which were particularly strong in the second quarter. Growth
stocks in general, performed well during the first half, which worked to the
disadvantage of our value style of management. Early in the year, we attempted
to structure the Fund more defensively by adding to the energy, utility and
healthcare sectors. Given the nearly 50% return provided by the market in the
last 18 months, it has become more difficult to find attractively valued
securities. Absent a decline in prices, we are likely to continue our focus on
stocks and sectors which offer below-average risk.
The Loomis Sayles Growth & Income Fund's sector weightings are not
significantly changed from last year-end. We have added to utility and energy
issues and reduced holdings in consumer cyclicals. The Growth & Income Fund's
portfolio continues to sell at a substantial discount to market averages as
measured by its average price/earnings, price/cash flow and price/book value
ratios.
LOOMIS SAYLES SMALL CAP FUND
The Fund's portfolio managers are Jeffrey C. Petherick and Mary C.
Champagne.
During the first six months of 1996, small stocks experienced a strong
comeback on the heels of nearly two years of under performance relative to large
cap stocks. Strong earnings growth by many of the small cap sectors of the
market led to increased investor attention. Reasonable valuations also laid the
foundation for a small cap rally. As we closed out the second quarter, however,
several areas of the market looked expensive, particularly the small growth
stocks that had run to extremely high valuation levels. As we came to the
mid-year point, it looked like many of the small companies were running out of
earnings power.
While there were some disappointing companies in the Loomis Sayles Small Cap
Fund in the first part of 1996, the majority of the companies in your portfolio
reported positive developments and strong earnings. Our "value" discipline that
led us to lower P/E stocks also helped, as we experienced neither the dramatic
increase in valuations nor the quick free-fall in prices in June. Year-to-date,
the biggest gains in the portfolio came in the energy area. Our stock selection
and our overweighting in this area helped the portfolio a great deal. Stocks
such as Global Industries, Lomak Petroleum, Cross Timbers Oil and Vintage
Petroleum were all up significantly. The other sector that contributed strongly
to the Fund's performance was consumer durables, where the automotive stocks
were up nicely. Tower Automotive and Masland were both up close to 50% while
Harman International and Sturm Ruger were up over 30% each. Other stocks that
were strong contributors to the quarter were CDI Corporation, Inter Tel, WMS
Industries, Community Health Systems, Health Images, Cole National, Dave and
Busters, MDL Information Systems and SPSS Inc.
While the overall portfolio performed well, there were some disappointments.
While we have been under-weighted in technology all year, several of the
technology issues that we do hold have been poor performers. Mentor Graphics,
Merix Corp and Read-Rite all performed poorly in June. In none of these cases do
we feel that there is any long term fundamental impairment of the company.
Stocks that were poor performers and have been sold are Minntech, Numerex,
Wolverine Tube, J & L Specialty Steel, Haverty Furniture and Zilog.
LOOMIS SAYLES INTERNATIONAL EQUITY FUND
The net asset value of the Loomis Sayles International Equity Fund rose
7.98% in the first half of 1996. This compared to a 4.52% rise in the MSCI EAFE
Index and a 7.80% increase in the Lipper median for the period.
We experienced strong gains in Sweden, Spain, Finland and Portugal. These
markets benefitted from an upturn in cyclical shares, as well as corporate
restructurings which are producing leaner and more profitable companies across
much of Europe. We had negative returns in South Africa and New Zealand.
Looking forward, we believe that the combination of economic growth and
corporate restructuring will provide attractive opportunities for investment
abroad.
On July 15, 1996, Paul Drexler became the portfolio manager for the Loomis
Sayles International Equity Fund. Paul has been working on the Fund for the past
three years, covering a variety of markets in both Europe and the Pacific. He
previously worked at Brown Brothers Harriman in New York and London. As part of
this transition, Frank Jedlicka has stepped down as manager of the Fund, but
continues to make his expertise available as a senior analyst.
LOOMIS SAYLES WORLDWIDE FUND
The Fund's portfolio managers are E. John deBeer, Paul Drexler, Quentin
Faulkner and Daniel J. Fuss.
At the Worldwide Fund's inception on May 1, 1996, holdings were balanced
with 39.6% in U.S. equities, 25.0% in U.S. bonds, 20.1% in foreign equities and
15.3% in foreign bonds. The commitment to fixed income is relatively large,
reflecting our belief that equity valuation levels are on the high side in the
United States and other countries. Portfolio yield is 5.2%, compared with the
dividend yield for the S&P 500 of 2.2% as of June 30, 1996.
BOND FUNDS
LOOMIS SAYLES BOND FUND
The Fund's portfolio manager is Daniel J. Fuss.
For the first half of 1996, the Loomis Sayles Bond Fund performed well,
returning 0.62% in an environment in which long U.S. Treasury yields were up
significantly from the end of 1995 and the average medium-grade bond fund as
tracked by Lipper returned -2.30%. Most broad fixed income market benchmarks
generated negative returns for the first six months of 1996. Since the beginning
of January, long Treasury yields have moved up 0.93%. Mixed economic news drove
yields on the thirty year U.S. Treasury bond to a high for the year of 7.19% on
June 12 before easing back to 6.87% on June 28. The recent market did not favor
long duration portfolios like the Loomis Sayles Bond Fund. However, the credit
specific influences of the portfolio helped the Fund to perform better than one
would expect given its longer maturity and duration. The issue specific focus of
the Fund and its structural diversification, featuring lower- and medium-grade
quality issues as well as a degree of foreign exposure, helped to lower
sensitivity to the negative effects of rising domestic interest rates.
Over the last six months, the market continued to favor lower- and medium-
grade corporate securities as prices on these issues were steady while longer
Treasury issues underperformed as yield spreads on corporate securities
tightened. In this environment, the yield advantage inherent in medium- and
lower-grade corporates served the portfolio well. During the period, the Fund
continued to modestly pare back corporate exposure and to hold some assets in
government securities until bonds with appropriate yield advantages can be
found. Nonetheless, the allocation to U.S. government bonds remains at a modest
14%.
The Fund has maintained a degree of global diversification. The major
international areas for the Fund continue to be Canada, (primarily the western
provinces), the Latin American Brady issues, New Zealand and Ireland. The Fund
recently added a position in South Africa and has increased its Canadian
exposure over the period. Each of these positions offers an attractive yield and
the benefits of global diversification.
The portfolio continues to offer good yield advantage, call protection and
diversification. There is a degree of foreign exposure and a continuing focus on
credit and issue specific factors which lower the sensitivity of the portfolio
to general market movements. This structural diversity is important as we
continue to focus on longer maturity issues. We continue to believe that the
portfolio is well structured for total investment return.
LOOMIS SAYLES GLOBAL BOND FUND
The Fund's portfolio manager is E. John deBeer.
The Loomis Sayles Global Bond Fund enjoyed strong performance for the first
six months of 1996. High portfolio yield helped, and several European holdings
such as Italy, Ireland and Sweden benefitted from the European movement toward
EMU. Although the dollar rose during the period, the portfolio's holdings were
protected by a hedge back into the dollar.
The reduction in Fund holdings allocated to smaller countries and the shift
back into U.S. dollar-denominated holdings has already begun. During the first
half of the year, the Fund was positively impacted as the smaller countries,
which were a significant part of the portfolio, performed well. Now, fewer
countries exhibit relative value in comparison to the United States which has
led to the movement into U.S. holdings. However, portfolio yield remains high at
8.6% and there are still a number of smaller countries where good value can be
found.
LOOMIS SAYLES U.S. GOVERNMENT SECURITIES FUND
The Fund's portfolio manager is Kent P. Newmark.
The bond market reversed its 1995 course during the first half of 1996.
Interest rates were higher across the board, but the most price damage occurred
in the long-term Treasury sector. Yields rose a full percentage point in that
maturity range, which translates into a price depreciation of over 12 points (or
$120 for $1,000 in principal).
The surprise was the strength of the economy. Non-farm payroll employment
rose sharply above most expectations in five of the six months, and each time
the bond market fell 2-3 points. A strong rally on June 28 enabled the long bond
to close at a 6.89% yield.
The Loomis Sayles U.S. Government Securities Fund has historically been
overweighted in longer-term securities, and the first half of 1996 was no
exception. In fact, the Fund lengthened maturities as interest rates rose and,
as of June 30, the portfolio had an effective duration of 8.7 years. As one
would expect, given its long duration, the U.S. Government Securities Fund
showed a total return of -4.7% for the first 6 months of 1996 versus -2.2% for
the Lipper Median Government Fund. Longer-term results are consistently above
the benchmark.
Expectations are for interest rates to move slightly higher during the
summer months, with most of the pressure on the shorter part of the yield curve.
The portfolio, with a current yield of 7.09% and the relatively long duration
described above, should benefit if there is a neutral to lower interest rate
environment later in the year.
LOOMIS SAYLES MUNICIPAL BOND FUND
The Fund's portfolio manager is Martha F. Hodgman.
At the beginning of 1996, there were two significant features to the
municipal market: low absolute yields (5.20% for thirty year AAA bonds), and,
due to uncertainty about tax reform, a cheap relationship to taxable securities
with long yields roughly 87% of long Treasuries. Six months later, long
municipal yields have backed up to 5.80% and municipals are at their richest
relationship to Treasuries in over a year (now about 82%). Like its taxable
counterparts, for the first two quarters the municipal market focused on the
economy and what direction interest rates might take. In early January it
appeared that the economy could be weak enough for the Federal Reserve to
continue to ease. Subsequent economic reports, however, indicated surprising
strength, interest rates rose as inflation fears resurfaced, and now investors
are talking about the Federal Reserve tightening. Municipal yields did not
increase as much as taxables, however, as retail investors returned to the
market as buyers due to several factors. Importantly, the realization that
meaningful tax reform seems unlikely this year, and fears that the equity
markets could be reaching their peaks, combined with enticingly attractive
higher yields to attract buyers to the municipal market.
The Loomis Sayles Municipal Bond Fund's total return for the past six months
of -1.49% is in line with the Lipper General Municipal Bond Fund average of
- -1.38%. In contrast to many municipal bond funds, the Fund saw few redemptions
during the first half of the year. Our trading strategy has been to keep cash at
about 5% of the Fund to invest on dips in prices, and to extend call protection
when possible. New issue supply is expected to be relatively light for the
balance of the year. With steady demand, municipal securities should perform
well.
LOOMIS SAYLES SHORT-TERM BOND FUND
The Fund's portfolio manager is John Hyll.
For the third consecutive year, the psychology and direction of the bond
market changed dramatically during the first quarter. During the first quarter
of 1996, yields for the two-year U.S. Treasury declined to 4.79% in mid-
February. By March 15, yields had risen to 5.87%, an increase of over 1%. The
release of the employment report on March 8 triggered the worst one-day
performance since February 1, 1982.
The bond market continued to struggle during the second quarter of 1996. The
yield for the two-year U.S. Treasury rose to 6.11% on June 28 from 5.76% on
March 29. The employment report continued to be the nemesis of the bond market
during the first half of 1996. For example, the 30-year U.S. Treasury rose 123
basis points during the first six months; 98 of those 123 basis points or 80%
occurred on the employment report release dates - a record, and extremely
unusual for the reports to account for so much of a trend in yields. Concern
regarding a strengthening economy combined with higher inflationary pressures,
mostly caused by the strong employment reports, led to a very difficult first
half of 1996.
Throughout the first quarter of 1996, the Fund's credit quality remained
high with 56.4% in U.S. Treasuries, compared to 59.2% on 12/29/95. The average
maturity remained near its maximum at 2.8 years.
During the second quarter, and as economic fundamentals continued to show
strength, the Fund's holdings of U.S. Treasuries were reduced from 56.4% on
March 29 to 24.8% on June 28. The reduction in U.S. Treasuries was in favor of
corporate holdings. The average maturity remained at a maximum of 3.0 years.
While it appears likely that economic strength will continue for awhile and the
Federal Reserve will most likely raise interest rates, the Fund will likely
adopt a more defensive posture through asset selection, in preference to a
reduction in the Fund's average maturity.
<PAGE>
LOOMIS SAYLES GROWTH FUND
- -------------------------------------------------------------------------------
INVESTMENTS -- as of June 30, 1996
(unaudited)
COMMON STOCKS -- 98.7%
OF TOTAL NET ASSETS
Shares Value (a)
-------- ------------
AEROSPACE -- 3.5%
Boeing Co. ..................................... 19,800 $ 1,725,075
------------
AIRLINES -- 2.3%
Southwest Airlines ............................ 38,400 1,118,400
------------
BEVERAGE -- 1.1%
Coca Cola Co. ................................. 10,700 522,963
------------
BUSINESS SERVICES -- 5.1%
Cintas Corp. .................................. 10,300 551,050
First Data Corp. ............................... 16,500 1,313,813
Medaphis Corp. (c) ............................ 15,500 616,125
------------
2,480,988
------------
CHEMICAL -- MAJOR -- 3.4%
Air Products & Chemicals ...................... 2,800 161,700
Monsanto Co. ................................... 46,000 1,495,000
------------
1,656,700
------------
CHEMICALS -- SPECIALTY -- 2.6%
Morton International .......................... 33,400 1,244,150
------------
COMPUTER SOFTWARE & SERVICES -- 6.7%
HBO & Co. ...................................... 10,800 731,700
Informix Corp. (c) ............................ 26,200 589,500
Microsoft Corp. (c) ........................... 3,900 468,488
Oracle Systems Corp. (c) ...................... 37,050 1,461,159
------------
3,250,847
------------
FINANCIAL SERVICES -- 1.3%
MGIC Investment Corp. ......................... 11,200 628,600
------------
HEALTH CARE -- DRUGS -- 9.8%
Amgen (c) ..................................... 15,000 810,000
Biogen, Inc. (c) .............................. 20,600 1,130,425
Johnson & Johnson ............................. 10,000 495,000
Merck & Co. .................................... 11,000 710,875
Oncor (c) ..................................... 175,000 962,500
Somatogen (c) ................................. 46,000 649,750
------------
4,758,550
------------
HEALTH CARE -- SERVICES -- 2.1%
HealthSouth Rehabilitation (c) ................ 28,100 1,011,600
------------
HEALTH CARE -- MEDICAL TECHNOLOGY -- 3.9%
Medtronic ..................................... 23,600 1,321,600
Ventritex (c) ................................. 33,800 578,825
------------
1,900,425
------------
HOTELS & RESTAURANTS -- 6.0%
Boston Chicken, Inc. (c) ...................... 31,000 $ 1,007,500
Starbucks Corp. (c) ........................... 68,000 1,921,000
------------
2,928,500
------------
INSURANCE -- 3.0%
American International Group .................. 5,150 507,919
Exel .......................................... 13,800 972,900
------------
1,480,819
------------
LEISURE -- 3.1%
Eastman Kodak ................................. 19,600 1,523,900
------------
MEDIA & ENTERTAINMENT -- 1.9%
TCI Group Class A (c) ......................... 51,300 929,813
------------
METALS -- 1.2%
Nucor Corp. ................................... 11,800 597,375
------------
OFFICE EQUIPMENT & SUPPLIES -- 8.1%
Cisco Systems (c) ............................ 9,000 509,625
Hewlett Packard ............................... 11,700 1,165,613
Parametric Technology (c) ..................... 16,200 702,675
U.S. Robotics Corp. (c) ....................... 18,400 1,573,200
------------
3,951,113
------------
OIL -- INDEPENDENT PRODUCERS -- 10.2%
Anadarko Petroleum Corp. ...................... 37,900 2,198,200
Enron Oil & Gas Co. ........................... 31,200 869,700
Unit Corp. (c) ................................ 290,800 1,926,550
------------
4,994,450
------------
OIL -- SERVICE -- 9.3%
Baker Hughes, Inc. ............................. 42,100 1,384,035
Rowan (c) ..................................... 89,900 1,326,025
Schlumberger Ltd. .............................. 21,800 1,836,650
------------
4,546,710
------------
RETAIL -- SPECIALTY -- 4.8%
CUC International (c) ......................... 30,850 1,095,175
Petsmart (c) .................................. 25,600 1,222,400
------------
2,317,575
------------
TELECOMMUNICATIONS -- 9.3%
Cascade Communications (c) .................... 19,200 1,305,600
Glenayre Technologies Inc. (c) ................. 18,400 920,000
Qualcomm (c) .................................. 22,000 1,168,750
Tellabs, Inc. .................................. 17,000 1,136,875
------------
4,531,225
------------
TOTAL COMMON STOCKS
(Identified Cost $38,255,135) ............................. 48,099,778
------------
<PAGE>
SHORT-TERM INVESTMENTS -- 2.8%
Face
Amount Value (a)
----------- ------------
Associates Corp. of North America
5.45% 7/01/96 ................................ $1,352,071 $ 1,352,071
------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $1,352,071) .............................. 1,352,071
------------
TOTAL INVESTMENTS -- 101.5%
(Identified Cost $39,607,206)(b) ............................ 49,451,849
Receivables and Other Assets .................................. 984,162
Liabilities ................................................... (1,696,372)
------------
TOTAL NET ASSETS -- 100% ...................................... $48,739,639
=== ===========
(a) See Note 1A.
(b) Federal Tax Information:
At June 30, 1996 the net unrealized appreciation on investments based on
cost of $39,607,206 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost ........ $10,973,720
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value ........ (1,129,077)
------------
Net unrealized appreciation ............................... $ 9,844,643
============
(c) Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES GROWTH AND INCOME FUND
- -------------------------------------------------------------------------------
INVESTMENTS -- as of June 30, 1996
(unaudited)
COMMON STOCKS -- 98.3%
OF TOTAL NET ASSETS
Shares Value (a)
----------- ------------
AEROSPACE -- 4.5%
Northrup Grumman Corp. ......................... 14,500 $ 987,813
Raytheon Corp. ................................ 14,000 722,750
------------
1,710,563
------------
BANKS/SAVINGS & LOANS -- 5.5%
Chase Manhattan Corp. ........................ 11,960 844,675
Standard Federal Bank of Troy,
Michigan ..................................... 32,700 1,258,950
------------
2,103,625
------------
CHEMICAL -- MAJOR -- 5.4%
Dupont ........................................ 9,000 712,125
Geon Co. ....................................... 17,000 382,500
Grace, W.R. .................................... 5,800 411,075
Praxair ........................................ 13,000 549,250
------------
2,054,950
------------
CHEMICALS -- SPECIALTY -- 1.0%
Great Lakes Chemicals .......................... 6,000 373,500
------------
ELECTRICAL EQUIPMENT -- 1.1%
General Electric Co. .......................... 5,000 432,500
------------
ELECTRONIC COMPONENTS -- 1.2%
Texas Instruments ............................. 9,300 463,838
------------
ENVIRONMENTAL SERVICES -- 2.8%
WMX Technologies .............................. 16,300 533,825
Wheelabrator Technologies ...................... 35,000 533,750
------------
1,067,575
------------
FINANCIAL SERVICES -- 7.5%
Beneficial Corp. .............................. 13,200 740,850
Countrywide Credit Industries .................. 17,000 420,750
Finova Group ................................... 22,000 1,072,500
Paine Webber Group, Inc. ....................... 27,000 641,250
------------
2,875,350
------------
FOOD -- PKGD & MISC -- 2.0%
Sara Lee ....................................... 24,100 780,238
------------
HEALTH CARE -- DRUGS -- 5.2%
Abbott Labs .................................... 9,800 426,300
Bristol Myers Squibb ........................... 10,500 945,000
Schering-Plough ................................ 10,000 627,500
------------
1,998,800
------------
HEALTH CARE -- MEDICAL TECHNOLOGY -- 1.5%
C.R. Bard ..................................... 17,000 578,000
------------
HEALTH CARE -- SERVICES -- 3.4%
Tenet Healthcare REITS (c) ..................... 60,240 1,287,630
------------
HOME PRODUCTS -- 3.0%
Premark International ......................... 27,500 508,750
Tupperware Corp. ............................... 15,000 633,750
------------
1,142,500
------------
HOUSING & BUILDING MATERIALS -- 1.8%
Armstrong World Industries, Inc. .............. 12,000 691,500
------------
INSURANCE -- 5.3%
ACE Limited ................................... 16,000 752,000
Allstate Corp. ................................. 18,059 823,942
First Colony Corp. ............................. 14,000 434,000
------------
2,009,942
------------
MEDIA & ENTERTAINMENT -- 0.6%
Harcourt General .............................. 4,400 220,000
------------
MULTI-INDUSTRY -- 6.6%
Dial Corp. .................................... 22,000 629,750
Eaton Corp. .................................... 13,500 791,438
Philips Electronics ADR (d) .................... 16,000 522,000
Textron, Inc. .................................. 7,000 559,125
------------
2,502,313
------------
NATURAL GAS -- PIPELINES -- 4.1%
El Paso Natural Gas Co. ....................... 9,000 346,500
Mapco .......................................... 10,500 591,934
Columbia Gas Systems ........................... 12,000 625,500
------------
1,563,934
------------
OFFICE EQUIPMENT -- 5.6%
Hewlett Packard ................................ 4,600 458,275
Harris Corp. ................................... 13,100 799,100
Xerox Corp. .................................... 16,200 866,700
------------
2,124,075
------------
OIL -- INDEPENDENT PRODUCERS -- 1.8%
Union Texas Petroleum Holdings ................ 35,000 682,500
------------
OIL -- MAJOR INTEGRATED -- 5.7%
Atlantic Richfield Co. ........................ 7,000 829,500
Repsol ADR (d) ................................. 21,000 729,750
Mobil Corp. .................................... 5,400 605,475
------------
2,164,725
------------
REAL ESTATE -- 3.9%
Health Care Property
Investments .................................. 27,000 911,250
Meditrust SBI REITS ............................ 17,000 567,375
------------
1,478,625
------------
RETAIL -- GENERAL MERCHANDISE -- 3.2%
Federated Dept. Stores (c) .................... 23,000 784,875
Sears, Roebuck & Co. ........................... 8,700 423,038
------------
1,207,913
------------
RETAIL -- FOOD & DRUG -- 1.7%
McKesson Corp. ................................. 14,000 666,750
------------
TOBACCO -- 2.1%
Loews Corp. ................................... 10,000 788,750
------------
UTILITIES -- ELECTRIC -- 3.8%
Eastern Utilities Associates .................. 16,000 314,000
Pacificorp. .................................... 12,600 280,350
Texas Utilities ................................ 20,000 855,000
------------
1,449,350
------------
UTILITIES -- TELECOMMUNICATIONS -- 8.0%
AT&T Corp. ..................................... 6,200 384,400
Ameritech Corp. ................................ 14,300 849,063
Bellsouth Corp. ................................ 24,000 1,017,000
Pacific Telesis Group .......................... 24,600 830,250
------------
3,080,713
------------
TOTAL COMMON STOCKS
(Identified Cost $30,680,624) ............................. 37,500,159
------------
SHORT-TERM INVESTMENTS -- 2.8%
Face
Amount
-----------
Associates Corp. of North America
5.45%, 7/1/96 ................................ $1,080,017 1,080,017
------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $1,080,017) .............................. 1,080,017
------------
TOTAL INVESTMENTS -- 101.1%
(Identified Cost $31,760,641)(b) .......................... 38,580,176
Receivables and Other Assets .................................. 209,719
Liabilities ................................................... (637,084)
------------
TOTAL NET ASSETS -- 100% ...................................... $38,152,811
===========
(a) See Note 1A.
(b) Federal Tax Information:
At June 30, 1996 the net unrealized appreciation on investments based on
cost of $31,760,641 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost ........ $ 7,228,458
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value ........ (408,923)
------------
Net unrealized appreciation ............................... $ 6,819,535
============
(c) Non-income producing security.
(d) An American Depository Receipt (ADR) is a certificate issued by a U.S.
bank representing the right to receive securities of the foreign issuer
described. The values of ADRs are significantly influenced by trading on
exchanges not located in the United States or Canada.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES SMALL CAP FUND
- -------------------------------------------------------------------------------
INVESTMENTS -- as of June 30, 1996
(unaudited)
COMMON STOCKS -- 92.0%
OF TOTAL NET ASSETS
Shares Value (a)
----------- -------------
AEROSPACE -- .4%
Whittaker Corp. (c) ........................... 22,100 $ 408,850
-------------
AUTO & RELATED -- 1.7%
Strattec Security Corp. (c) .................. 26,700 473,925
Tower Automotive, Inc. (c) .................... 55,800 1,367,100
-------------
1,841,025
-------------
BUSINESS SERVICES -- 2.2%
CDI Corp. (c) ................................ 44,300 1,495,125
Cort Business Services (c) .................... 44,600 869,700
-------------
2,364,825
-------------
CHEMICALS -- SPECIALTY -- 4.8%
Cambrex Corp. ................................. 23,100 1,180,988
Cytec Industries (c) ......................... 10,400 889,200
Dexter Corp. .................................. 45,700 1,359,575
Intertape Polymer Group ...................... 58,000 1,174,500
LeaRonal, Inc. ................................ 23,400 585,000
-------------
5,189,263
-------------
COMPUTER SOFTWARE & SERVICES -- 4.3%
Analysts International Corp. ................. 18,800 789,600
Boole & Babbage, Inc. (c) ..................... 33,000 792,000
MDL Information Systems, Inc. (c) 16,300 484,925
Mentor Graphics Corp. (c) ..................... 61,300 996,125
National Computer Systems, Inc. 37,000 790,875
SPSS, Inc. (c) ................................ 32,600 815,000
-------------
4,668,525
-------------
ELECTRONIC COMPONENTS -- 4.6%
Amphenol Corp. (c) ........................... 58,100 1,336,300
Burr Brown Corp. (c) .......................... 25,200 447,300
Merix Corp. (c) ............................... 27,800 556,000
Read Rite Corp. (c) ........................... 39,500 557,937
S3, Inc. (c) .................................. 65,900 811,394
Technitrol Inc. ............................... 14,500 574,563
Unitrode Corp. (c) ............................ 34,200 662,625
-------------
4,946,119
-------------
ELECTRICAL EQUIPMENT -- 1.4%
Belden, Inc. (c) .............................. 24,300 729,000
Gasonics International Corp. (c) ............. 27,000 283,500
Woodhead Industries ........................... 38,700 454,725
-------------
1,467,225
-------------
ENVIRONMENTAL SERVICES -- 1.8%
United Waste Systems (c) ...................... 21,600 696,600
World Fuel Services Corp. ..................... 69,650 1,262,406
-------------
1,959,006
-------------
FINANCIAL SERVICES -- 4.5%
DVI Inc. (c) .................................. 60,400 951,300
Financial Federal Corp. (c) ................... 60,700 948,437
Imperial Credit Industries (c) ................ 36,230 1,095,958
Southern Pacific Funding Corp. (c) 32,100 561,750
WFS Financial, Inc. (c) ....................... 56,500 1,271,250
-------------
4,828,695
-------------
FOOD -- AGRIBUSINESS -- 1.0%
Unimark Group, Inc. ........................... 65,600 1,090,600
-------------
FOOD -- PACKAGED & MISCELLANEOUS -- 1.3%
Flowers Industries, Inc. ...................... 89,000 1,435,125
-------------
FREIGHT TRANSPORTATION -- 2.9%
ABC Rail Products Corp. (c) .................. 20,300 438,988
Harper Group .................................. 67,700 1,320,150
Pittston Burlington Group (c) ................ 62,200 1,345,075
-------------
3,104,213
-------------
HEALTH CARE -- MEDICAL TECHNOLOGY -- 3.1%
Conmed Corp. (c) .............................. 38,875 1,035,047
Gelman Sciences (c) ........................... 44,975 1,017,559
Minntech Corp. ................................ 28,400 308,850
Sofamor Danek Group (c) ....................... 33,650 933,788
-------------
3,295,244
-------------
HEALTH CARE -- SERVICES -- 4.2%
Applied Bioscience International,
Inc. ........................................ 30,600 321,300
Grancare Inc. (c) ............................. 76,542 1,521,272
Healthplan Services Corp. (c) ................. 36,500 839,500
Health Images (c) ............................. 69,100 803,288
Regency Health Services (c) ................... 92,970 1,057,534
-------------
4,542,894
-------------
HOME PRODUCTS -- 3.3%
Aptargroup ................................... 16,600 502,150
Bush Boake Allen (c) .......................... 21,500 467,625
Inbrand Corp. (c) ............................. 20,550 575,400
Paragon Trade Brands, Inc. .................... 39,300 844,950
U.S. Can Corp. (c) ............................ 71,400 1,160,250
-------------
3,550,375
-------------
HOTELS & RESTAURANTS -- 1.5%
WMS Industries, Inc. (c) ...................... 67,400 1,659,725
-------------
HOUSING & BUILDING MATERIALS -- 3.6%
Congoleum Corp. (c) .......................... 77,000 885,500
Crossman Communities (c) ...................... 28,600 557,700
Dayton Superior Corp. (c) ..................... 49,700 652,313
Giant Cement HLD (c) .......................... 79,300 1,001,163
Toro Co. ...................................... 23,300 771,812
-------------
3,868,488
-------------
Shares Value (a)
----------- -------------
INSURANCE -- 7.0%
Allied Group ................................. 41,300 1,796,550
Capital Re Corp. .............................. 29,200 1,073,100
Dignity Partners, Inc. (c) .................... 45,900 424,570
Meadowbrook Insurance Group (c) 27,400 842,550
Protective Life Corp. ......................... 32,400 1,138,050
Reinsurance Group of America .................. 34,800 1,313,700
Triad Guaranty (c) ............................ 24,000 882,000
-------------
7,470,520
-------------
LEISURE -- 0.7%
Harman International ......................... 15,835 779,874
-------------
MACHINERY -- 2.3%
Greenfield Industries ......................... 23,900 788,700
Hardinge, Inc. ................................ 28,700 911,225
Keystone International, Inc. .................. 35,500 736,625
-------------
2,436,550
-------------
MEDIA & ENTERTAINMENT -- 2.6%
Banta Corp. ................................... 50,674 1,279,519
Houghton Mifflin .............................. 30,900 1,537,275
-------------
2,816,794
-------------
METALS -- 6.3%
Citation Group (c) ........................... 73,550 882,600
Cleveland - Cliffs ............................ 26,950 1,054,418
J & L Specialty Steel, Inc. ................... 18,400 273,700
Oregon Steel Mills, Inc. ...................... 100,900 1,387,375
Quanex Corp. .................................. 50,600 1,195,425
Republic Engineered Steels (c) ................ 77,000 269,500
RMI Titanium Co. (c) .......................... 28,300 665,050
UNR Industries ................................ 112,900 1,086,663
-------------
6,814,731
-------------
MULTI-INDUSTRY -- 1.6%
Griffon Corp. (c) ............................ 114,550 930,719
Insilco Corp. (c) ............................. 22,200 743,700
-------------
1,674,419
-------------
OIL -- INDEPENDENT PRODUCERS -- 4.3%
Belden & Blake Corp. (c) ..................... 55,325 1,147,994
Cross Timbers Oil Co. ......................... 46,600 1,153,350
Lomak Petroleum (c) ........................... 62,200 886,350
Vintage Petroleum (c) ......................... 58,000 1,479,000
-------------
4,666,694
-------------
OIL -- SERVICE -- 3.5%
Global Industries (c) ......................... 42,700 1,270,325
Pride Petroleum Services, Inc. (c) 75,600 1,077,300
Seitel, Inc. (c) .............................. 46,900 1,283,888
-------------
3,631,513
-------------
PAPER -- 1.3%
Caraustar Industries ......................... 53,450 1,416,425
-------------
REAL ESTATE -- 6.2%
Capstone Capital Corp. REITS (c) 69,400 1,422,700
Chateau Properties REITS ...................... 67,500 1,501,875
HGI Rlty Inc. REITS ........................... 40,000 820,000
Liberty Property REITS ........................ 62,900 1,250,138
Patriot American Hospitality
REITS (c) ................................... 53,400 1,581,975
-------------
6,576,688
-------------
RETAIL -- GENERAL MERCHANDISE -- 0.5%
99 Cents Only Stores (c) ..................... 37,600 526,400
-------------
RETAIL -- SPECIALTY -- 4.1%
Carson Pirie Scott & Co. (c) .................. 45,500 1,217,125
Cato Corp. Class A (c) ........................ 88,675 532,050
Cole National Corp. (c) ....................... 72,000 1,440,000
Haverty Furniture Companies ................... 45,700 468,425
Zale Corp. (c) ................................ 46,900 791,438
-------------
4,449,038
-------------
SAVINGS & LOAN/BANKS -- 2.5%
Charter One Financial Inc. .................... 28,100 979,988
Commercial Federal Corp. (c) ................. 24,500 937,125
First Financial Corp. ......................... 35,350 795,375
-------------
2,712,488
-------------
TEXTILE & APPAREL -- 1.1%
Jones Apparel Group (c) ....................... 12,900 633,713
Kenneth Cole Productions (c) ................. 28,100 554,975
-------------
1,188,688
-------------
TELECOMMUNICATIONS -- 1.4%
Inter-Tel, Inc. (c) ........................... 38,100 997,743
Vertex Communications Corp. (c) 28,900 538,263
-------------
1,536,006
-------------
TOTAL COMMON STOCKS
(Identified Cost $84,590,206) 98,917,025
-------------
SHORT-TERM INVESTMENTS -- 8.4%
Face
Amount Value (a)
----------- --------------
Associates Corp. of North
America 5.45%, 7/01/96 ...................... $4,973,539 $ 4,973,539
Chevron Oil Finance Co.
5.25%, 7/01/96 .............................. 4,100,000 4,100,000
-------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $9,073,539) 9,073,539
-------------
TOTAL INVESTMENTS -- 100.4%
(Identified Cost $93,663,745) (b) 107,990,564
Cash, Receivables and Other Assets 1,554,053
Liabilities (2,015,106)
-------------
TOTAL NET ASSETS -- 100% $107,529,511
============
(a) See Note 1A.
(b) Federal Tax Information:
At June 30, 1996 the net unrealized appreciation on investments based on
cost of $93,663,745 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value over tax
cost ..................................................... $ 17,976,677
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax cost over
value .................................................... (3,649,858)
-------------
Net unrealized appreciation $ 14,326,819
=============
(c) Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INTERNATIONAL EQUITY FUND
- -------------------------------------------------------------------------------
INVESTMENTS -- as of June 30, 1996
(unaudited)
COMMON STOCKS -- 97.7%
OF TOTAL NET ASSETS
Shares (a) Value (b)
------------ -----------
CANADA -- 8.4%
Alcan Aluminum Ltd ............................. 18,000 $ 548,434
CAE ............................................ 75,000 621,471
Canadian National RY Co. ....................... 33,000 602,552
Canadian Pacific Ltd. .......................... 25,000 547,224
Cominco ........................................ 25,000 540,808
Investors Group Inc. ........................... 40,000 491,310
Loblaw Cos. .................................... 75,000 604,972
Magna International ............................ 12,500 577,473
Noranda ........................................ 35,000 716,067
Royal Bank ..................................... 25,000 600,389
SNC-Lavalin Group .............................. 81,000 629,611
Suncor ......................................... 23,000 726,919
-----------
7,207,230
-----------
DENMARK -- 8.3%
Cheminova ...................................... 2,800 574,689
Cheminova ...................................... 2,800 188,384
Christian Hansen ............................... 6,500 731,817
Copenhagen Airport ............................. 5,000 493,953
Danisco ........................................ 14,000 696,304
FLS ............................................ 7,000 703,458
Lindab ......................................... 66,000 741,952
Sophus Berendsen ............................... 6,000 801,400
Teledanmark .................................... 12,000 602,964
Topdanmark ..................................... 6,000 618,293
Unidanmark ..................................... 19,500 903,424
-----------
7,056,638
-----------
FINLAND -- 7.6%
Kemira ......................................... 60,000 627,074
Kesko .......................................... 65,000 963,668
Metra .......................................... 21,000 941,258
Orion .......................................... 28,000 934,017
Rauma .......................................... 48,000 954,704
Sampo .......................................... 14,000 811,533
Valmet ......................................... 75,000 1,268,694
-----------
6,500,948
-----------
ITALY -- 8.1%
Brembo ......................................... 55,000 648,640
Caffaro ........................................ 600,000 662,258
Caffaro Rights ................................. 600,000 19,156
Credito Italiano ............................... 470,000 550,005
Edison ......................................... 120,000 723,245
Fiat ........................................... 230,000 769,539
Mondadori ...................................... 65,000 491,285
Rinascente ..................................... 300,000 830,754
Saipem ......................................... 240,000 1,008,633
Sasib .......................................... 130,000 528,555
STET ........................................... 190,000 641,277
-----------
6,873,347
-----------
Shares (a) Value (b)
------------ -----------
JAPAN -- 8.6%
Asatsu ......................................... 14,000 606,946
Bridgestone .................................... 37,000 705,791
Daiwa House .................................... 35,000 543,057
Honda .......................................... 25,000 648,017
Komatsu ........................................ 65,000 640,716
Osaka Gas ...................................... 160,000 585,588
Paramount Bed .................................. 7,810 533,901
Sankyo ......................................... 24,000 622,096
Sanwa Shutter .................................. 70,000 658,057
Sharp .......................................... 37,000 648,382
Sony ........................................... 9,000 592,251
Sumitomo Metal Industries ...................... 175,000 536,668
-----------
7,321,470
-----------
NEW ZEALAND -- 7.5%
Carter Holt Harvey ............................. 490,000 1,120,211
Fisher and Paykel .............................. 229,500 737,375
Fletcher Challenge ............................. 400,000 782,645
Hallenstein Glasson ............................ 360,000 679,666
Nuplex ......................................... 290,000 985,514
Sanford ........................................ 310,000 544,830
St. Lukes Group ................................ 650,000 589,043
Telecom Corp. of New Zealand ................... 220,000 924,344
-----------
6,363,628
-----------
NORWAY -- 8.3%
Braathens Safe ................................. 62,500 610,230
Elkem .......................................... 45,000 619,263
Elkjop ......................................... 34,000 700,524
Kverneland ..................................... 24,000 590,433
Norsk Hydro .................................... 18,500 904,562
Norsk Skog ..................................... 24,000 723,281
Rieber & Son ................................... 30,000 645,786
Sas Norge ...................................... 46,694 506,162
Schibsted ...................................... 45,000 581,208
Storli ......................................... 32,000 610,114
Uni Storebrand ................................. 130,000 583,668
-----------
7,075,231
-----------
PORTUGAL -- 8.6%
Banco Espirito Santo .......................... 44,400 713,009
Cimpor ......................................... 36,500 758,678
CIN ............................................ 27,800 731,626
Corticeira Amorim .............................. 56,000 630,648
Engil .......................................... 79,400 639,055
Jeronimo Martins ............................... 8,400 756,563
Portugal Telecom ............................... 32,500 849,713
Seguros Mundial ................................ 100,000 824,018
Sonae Investments .............................. 29,000 753,944
Unicer ......................................... 40,000 713,127
-----------
7,370,381
-----------
SINGAPORE -- 7.8%
Courts ......................................... 312,000 497,449
DBS Land ....................................... 300,000 1,028,912
Far East Levingston ............................ 165,000 911,990
Fraser & Neave ................................. 54,000 558,673
Haw Par Brothers ............................... 250,000 570,437
Keppel Corp. ................................... 100,000 836,168
Oversea-Chinese Banking ........................ 60,000 701,531
Oversea-Chinese Banking ........................ 6,000 48,044
Pacific Carriers ............................... 750,000 611,182
United Overseas Bank ........................... 90,000 860,968
-----------
6,625,354
-----------
SOUTH AFRICA -- 7.6%
AECI ........................................... 80,000 434,130
Anglo American Coal ............................ 8,000 580,072
Beatrix Mines .................................. 60,000 481,469
Ingwe Coal ..................................... 80,000 544,972
Murray & Roberts ............................... 120,000 479,390
Nampak ......................................... 150,000 620,021
Pepkor ......................................... 125,000 606,166
Pretoria Portland Cement ....................... 31,000 565,524
Sasol .......................................... 65,000 705,461
South African Breweries ........................ 16,000 469,230
Southvaal ...................................... 13,000 465,303
Standard Bank .................................. 13,500 529,962
-----------
6,481,700
-----------
SPAIN -- 8.5%
Aguas D'Barcelona .............................. 19,000 705,598
Azkoyen ........................................ 9,342 653,776
Cubiertas ...................................... 9,500 618,880
Ebro Agricolas ................................. 66,000 762,083
FCC ............................................ 8,000 661,595
Iberdrola ...................................... 60,000 615,565
Prosegur ....................................... 23,000 807,490
Sevillana ...................................... 85,000 782,524
Telefonica ..................................... 52,000 957,441
Zardoya Otis ................................... 6,500 622,235
Zardoya Rights ................................. 6,500 61,615
-----------
7,248,802
-----------
SWEDEN -- 8.4%
Aga ............................................ 50,000 858,227
Atlas Copco .................................... 30,000 557,848
Bergman & Beving ............................... 31,700 930,725
Esselte ........................................ 40,000 816,068
Kalmar ......................................... 44,000 927,487
Sandvik ........................................ 35,000 806,282
SKF ............................................ 32,000 758,853
Svenska Handelsbanken .......................... 43,000 896,696
Sydkraft ....................................... 35,000 682,441
-----------
7,234,627
-----------
TOTAL COMMON STOCKS
(Identified Cost $79,226,877) .............................. 83,359,356
-----------
SHORT-TERM INVESTMENTS -- 1.6%
Face
Amount
------------
Repurchase Agreement with State Street Bank &
Trust Co. dated 6/28/96 at 4.75% to be
repurchased at $1,356,567 on 7/01/96
collateralized by $1,360,000 U.S. Treasury
Note 6.50%, due 9/30/96 with a value of
$1,385,108 ................................... $1,356,000 1,356,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $1,356,000) ............................... 1,356,000
-----------
TOTAL INVESTMENTS -- 99.3%
(Identified Cost $80,582,877) (d) ............................ 84,715,356
Cash, Receivables and Other Assets (c) ......................... 4,551,442
Liabilities .................................................... (3,911,100)
-----------
TOTAL NET ASSETS -- 100% ....................................... $85,355,698
===========
<PAGE>
FORWARD CURRENCY CONTRACTS OUTSTANDING
AT JUNE 30, 1996
Local Aggregate Unrealized
Delivery Currency Face Total Appreciation/
Date Amount Amount Value (Depreciation)
--------- --------- ---------- ------ ---------------
South African
Rand (sell) .. 7/22/96 26,802,000 $6,000,000 $6,143,472 $(143,472)
---------
$(143,472)
=========
(a) Ordinary shares unless noted otherwise.
(b) See Notes 1A and 1B.
(c) Including deposits in foreign denominated currencies with a value of
$3,803,361 and a cost of $3,786,683.
(d) Federal Tax Information:
At June 30, 1996 the net unrealized appreciation on investments
based on cost for federal income tax purposes of $80,582,877 was
as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost ................................... $ 7,378,674
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax
cost over value ................................. (3,246,195)
-----------
Net unrealized appreciation ..................... $ 4,132,479
===========
Ten Largest industry holdings at June 30, 1996.
Machinery ......................................................... 8.9%
Banking ........................................................... 7.0
Construction ...................................................... 6.8
Transportation Equipment .......................................... 6.7
Retail ............................................................ 6.3
Food .............................................................. 5.1
Telephone Communication ........................................... 4.8
Transportation .................................................... 4.1
Building Materials ................................................ 4.0
Chemicals ......................................................... 3.9
See accompanying notes to financial statements.
LOOMIS SAYLES WORLDWIDE FUND
- -------------------------------------------------------------------------------
INVESTMENTS -- as of June 30, 1996
(unaudited)
COMMON STOCKS -- 50.0%
OF TOTAL NET ASSETS
Shares Value (a)
-------------- --------------
DENMARK -- 2.1%
FLS Industries .............................. 1,000 $ 100,494
--------------
ITALY -- 2.1%
Fiat ........................................ 30,000 100,375
--------------
JAPAN -- 4.0%
Bridgestone ................................. 5,000 95,377
Sumitomo Trust & Banking .................... 7,000 95,834
--------------
191,211
--------------
NEW ZEALAND -- 1.9%
Carter Holt Harvey .......................... 40,000 91,445
--------------
SINGAPORE -- 1.9%
Haw Par Brothers International .............. 40,000 91,270
--------------
SWEDEN -- 4.3%
Esselte ..................................... 5,000 102,008
SKF ......................................... 4,000 94,857
--------------
196,865
--------------
UNITED STATES -- 33.7%
Bank of Boston Corp. ........................ 3,300 163,350
Black & Decker Corp. ........................ 4,100 158,363
Cabletron Systems, Inc. ..................... 1,900 130,387
Digital Equipment, Inc. ..................... 3,300 148,500
Eli Lilly & Co. ............................. 2,800 182,000
Intel Corp. ................................. 2,000 146,875
Manpower, Inc. .............................. 4,300 168,775
Monsanto Co. ................................ 5,000 162,500
Pacific Telesis Group ....................... 4,700 158,625
Rowan Companies, Inc. ....................... 11,600 171,100
--------------
1,590,475
--------------
TOTAL COMMON STOCKS
(Identified Cost $2,242,587) ............................... 2,362,135
--------------
BONDS AND NOTES -- 32.1%
Face
Currency Amount
--------- ---------
IRELAND -- 2.1%
Republic of Ireland,
8.250%, 8/18/15 ...................... USD 60,000 100,096
------------
MEXICO -- 3.4%
Mexico (United Mexico States),
11.500%, 5/15/26 ..................... USD 175,000 158,375
------------
NEW ZEALAND -- 2.1%
New Zealand,
8.000%, 11/15/06 ...................... NZD 150,000 97,882
------------
SOUTH AFRICA -- 4.2%
Republic of South Africa,
12.000%, 2/28/05 ...................... ZAR 1,000,000 198,956
------------
UNITED STATES -- 20.3%
Apple Computer, Inc.,
6.500%, 2/15/04 ....................... USD 250,000 206,250
Borden, Inc.,
9.200%, 3/15/21 ....................... USD 200,000 183,480
Dillon Read Structured Finance,
6.660%, 8/15/10 ....................... USD 185,130 145,327
Long Island Lighting Co.,
8.200%, 3/15/23 ....................... USD 250,000 219,555
Niagara Mohawk,
7.875%, 4/01/24 ....................... USD 250,000 205,317
-----------
959,929
------------
TOTAL BONDS AND NOTES
(Identified Cost $1,615,407) ................................ 1,515,238
------------
SHORT-TERM INVESTMENTS -- 2.6%
Repurchase Agreement with State Street Bank &
Trust Co. dated 6/28/96 at 4.752% to be
repurchased at $125,049 on 7/01/96 collater-
alized by $125,000 U.S. Treasury Notes 6.875%,
due 7/31/96 with a value of $129,944 .......... $125,00 125,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $125,000) .................. 125,000
------------
TOTAL INVESTMENTS -- 84.7%
(Identified Cost $3,982,994) (b) ............................ 4,002,373
Cash, Receivables and Other Assets ............................ 755,317
Liabilities ................................................... (30,106)
------------
TOTAL NET ASSETS -- 100% ...................................... $4,727,584
==========
(a) See Notes 1A and 1B.
(b) Federal Tax Information:
At June 30, 1996 the net unrealized appreciation on invest-
ments based on cost for federal income tax purposes of
$3,982,994 was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost ........ $ 113,418
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value ........ (94,039)
-------------
Net unrealized appreciation .............................. $ 19,379
=============
NZD = New Zealand Dollar ZAR = South African Dollar
USD = U.S. Dollar
See accompanying notes to financial statements.
LOOMIS SAYLES BOND FUND
- ------------------------------------------------------------------------------
INVESTMENTS -- as of June 30, 1996
(unaudited)
BONDS AND NOTES -- 91.5%
OF TOTAL NET ASSETS
Face
Amount Value (a)
----------- ------------
NON-CONVERTIBLE BONDS -- 79.6%
AEROSPACE -- 0.7%
Rohr Industries, 9.250%, 3/01/17 $ 2,450,000 $ 2,217,250
------------
AIR TRANSPORT -- 1.7%
United Airlines,
9.125%, 1/15/12 .............................. 2,500,000 2,683,275
United Airlines Pass Thru,
7.870%, 1/30/18 .............................. 2,350,000 2,229,962
NWA Trust, 9.360%, 3/10/06 ..................... 833,600 849,105
------------
5,762,342
------------
BROADCASTING -- 0.2%
CBS Inc., 7.125%, 3/01/03 ...................... 1,000,000 784,870
------------
CANADIAN -- 16.3%
Canadian Government,
8.000%, 6/01/23 .............................. 5,600,000 4,057,197
Hydro Quebec, Zero Coupon,
8/15/20 ...................................... 25,000,000 2,223,730
Province of British Columbia,
8.000%, 9/08/23 .............................. 2,000,000 1,417,717
Province of British Columbia,
Zero Coupon, 8/23/13 ......................... 33,000,000 5,790,790
Province of British Columbia,
Zero Coupon, 6/09/14 ......................... 10,000,000 1,639,657
Province of British Columbia,
Zero Coupon, 6/09/14 ......................... 5,000,000 432,280
Province of British Columbia,
Zero Coupon, 8/23/24 ......................... 91,000,000 6,572,927
Ontario Hydro, 8.900%, 8/18/22 ................. 2,840,000 2,190,861
Province of Ontario,
Zero Coupon, 7/13/22 ......................... 13,000,000 1,089,609
Province of Quebec,
9.375%, 1/16/23 .............................. 11,655,000 9,102,130
Rogers Cablesystems,
9.650%, 1/15/14 .............................. 3,400,000 2,169,099
Province of Manitoba,
7.750%, 12/22/25 ............................. 17,050,000 11,869,266
Province of Manitoba,
Zero Coupon, 7/22/13 ......................... 2,500,000 440,896
Province of Manitoba,
Zero Coupon, 3/05/31 ......................... 20,000,000 841,826
Province of Saskatchewan,
8.750%, 5/30/25 .............................. 6,435,000 4,888,651
------------
54,726,636
------------
COMPUTER HARDWARE -- 1.9%
Apple Computer, Inc.,
6.500%, 2/15/04 .............................. 5,000,000 4,125,000
Data General Corp.,
8.375%, 9/15/02 .............................. 350,000 327,306
Unisys Corp.,
9.750%, 9/15/16 .............................. 2,200,000 2,024,000
------------
6,476,306
------------
ELECTRICAL EQUIPMENT -- 1.2%
Westinghouse Electric Corp.,
7.875%, 9/01/23 .............................. 4,850,000 4,124,683
------------
ENTERTAINMENT -- 2.3%
Time Warner Entertainment Co.,
8.050%, 1/15/16 .............................. 4,950,000 4,705,025
Time Warner Entertainment Co.,
8.375%, 3/15/23 .............................. 3,200,000 3,115,584
------------
7,820,609
------------
ENVIRONMENTAL SERVICES -- 0.6%
Envirotest System Corp.,
9.625%, 4/01/03 .............................. 2,500,000 1,925,000
------------
FOOD & BEVERAGE -- 5.7%
Borden, 7.875%, 2/15/23 ........................ 5,000,000 4,091,600
RJR Nabisco, 7.625%, 9/15/03 ................... 10,800,000 10,290,024
RJR Nabisco, 9.250%, 8/15/13 ................... 4,945,000 4,962,654
------------
19,344,278
------------
FOREIGN DENOMINATED -- 8.2%
Escom, 11.000%, 6/01/08 (f) .................... 13,500,000 2,439,028
New Zealand Government,
8.000%, 4/15/04 (g) .......................... 2,475,000 1,618,452
New Zealand Government,
8.000%, 11/15/06 (g) ......................... 21,625,000 14,111,330
Republic of Ireland,
6.250%, 10/18/04 (h) ......................... 75,000 110,705
Republic of Ireland,
8.250%, 8/18/15 (h) .......................... 4,475,000 7,465,471
Republic of South Africa,
12.000%, 2/28/05 (f) ......................... 10,000,000 1,989,558
------------
27,734,544
------------
FOREIGN ISSUER -- 9.5%
BCO Central Costa,
6.250%, 5/21/10 .............................. 3,200,000 2,280,000
Republic of Argentina,
5.250%, 3/31/23 (e) .......................... 24,100,000 13,194,750
Republic of Brazil,
5.000%, 4/15/24 .............................. 15,000,000 8,240,700
Republic of Ecuador,
6.063%, 2/27/15 (e) .......................... 2,082,540 929,333
Republic of Ecuador,
3.250%, 2/28/25 (e) .......................... 12,000,000 4,305,000
Poland PDI Brady,
3.750%, 10/27/14 (c)(e) ...................... 3,500,000 2,686,250
Poland PDI Brady,
3.750%, 10/27/14 (e) ......................... 500,000 383,750
------------
32,019,783
------------
GOVERNMENT AGENCIES -- 0.9%
Federal National Mortgage Association, 6.000%,
11/25/08 ..................................... $ 3,414,270 $ 2,901,037
------------
GOVERNMENT -- 11.0%
United States Treasury Bond,
6.250%, 8/15/23 .............................. 36,250,000 32,862,800
United States Treasury Strips, Zero
Coupon Bonds, 8/15/23 ........................ 19,000,000 2,874,890
United States Treasury Bond,
6.875%, 8/15/25 .............................. 1,500,000 1,484,760
------------
37,222,450
------------
HOME BUILDERS -- 0.9%
Hovnanian Enterprises,
11.250%, 4/15/02-99 .......................... 1,000,000 920,000
Hovnanian Enterprises,
9.750%, 6/01/05-99 ........................... 1,350,000 1,147,500
Pulte Corp., 7.300%, 10/24/05 .................. 1,000,000 959,670
------------
3,027,170
------------
METAL -- 0.3%
Midland Ross Corp.,
6.000%, 2/15/07 .............................. 1,400,000 868,000
------------
OIL & GAS -- 1.3%
Maxus Energy, 8,500%, 4/01/08 .................. 1,000,000 907,500
Sage Energy, 8.500%, 10/15/05 .................. 98,00 88,200
USX Marathon Group,
8.500%, 3/01/23 .............................. 550,000 562,474
USX Marathon Group,
8.125%, 7/15/23 .............................. 2,825,000 2,770,139
------------
4,328,313
------------
PAPER -- 0.7%
Georgia Pacific Corp.,
7.375%, 12/01/25 ............................. 2,500,000 2,277,700
------------
REAL ESTATE -- 0.6%
Security Capital Trust,
8.650%, 5/15/16 .............................. 2,000,000 1,991,060
------------
RETAIL -- 5.6%
Bradlees, Inc.,
11.000%, 08/01/02(d) ......................... 250,000 32,500
Bradlees, Inc.,
9.250%, 03/01/03(d) .......................... 250,000 30,000
Dillon Reed Structured Finance
Corp., 6.660%, 8/15/10 ....................... 2,776,945 2,179,902
Dillon Reed Structured Finance
Corp., 8.550%, 8/15/19 ....................... 500,000 397,500
K Mart, 8.540%, 1/02/15 ........................ 1,250,000 1,018,750
K Mart, 9.350%, 1/02/20 ........................ 2,500,000 2,037,500
K Mart, 9.780%, 1/05/20 ........................ 1,000,000 830,000
K Mart, 7.950%, 2/01/23 ........................ 6,500,000 4,940,501
Penn Traffic Co.,
9.625%, 4/15/05 .............................. 6,100,000 4,422,500
Service Merchandise,
9.000%, 12/15/04 ............................. 500,000 440,000
Woolworth, 8.500%, 1/15/22 ..................... 2,500,000 2,409,750
------------
18,738,903
------------
RESTAURANTS -- 0.6%
Flagstar Corp.,
11.250%, 11/01/04 ............................ 3,200,000 2,112,000
------------
STEEL -- 0.9%
Geneva Steel Co.,
11.125%, 3/15/01 ............................. 750,000 651,563
Geneva Steel Co.,
9.500%, 1/15/04 .............................. 3,250,000 2,535,000
------------
3,186,563
------------
TAXABLE MUNICIPAL -- 0.7%
Los Angeles County, California,
7.070%, 6/30/09 .............................. 1,500,000 1,453,035
Orange County, California Pension
Obligation, Zero Coupon
Bond, 9/01/16 ................................ 5,000,000 1,007,500
------------
2,460,535
------------
TELECOMMUNICATIONS -- 4.5%
Nextel Communications,
Zero Coupon Bond, 8/15/04 (e) 2,500,000 1,468,750
TCI Communications,
7.875%, 2/15/26 .............................. 15,550,000 13,695,507
------------
15,164,257
------------
TEXTILES -- 0.8%
Fruit of the Loom Inc.,
7.375%, 11/15/23 ............................. 3,000,000 2,669,910
Phillips Van Heusen Corp.,
7.750%, 11/15/23 ............................. 100,000 81,326
------------
2,751,236
------------
UTILITIES -- 2.5%
Beaver Valley Funding Corp.,
9.000%, 6/01/17 ............................. 3,250,000 2,652,748
Commonwealth Edison,
4.750%, 12/01/11-96 .......................... 952,000 689,086
GGIB Funding Corp.,
7.430%, 1/15/11 .............................. 1,231,656 1,172,499
Long Island Lighting Co.,
8.200%, 3/15/23-03 ........................... 450,000 395,199
Niagara Mohawk Power Corp.,
5.875%, 9/01/02 .............................. 500,000 418,460
Niagara Mohawk Power Corp.,
6.625%, 7/01/05 .............................. 550,000 445,244
Niagara Mohawk Power Corp.,
7.750%, 5/15/06 .............................. 250,000 221,345
Niagara Mohawk Power Corp.,
8.750%, 4/01/22 .............................. 500,000 446,205
Niagara Mohawk Power Corp.,
7.875%, 4/01/24 .............................. 2,500,000 2,053,175
------------
8,493,961
------------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $266,658,532) ............................ 268,459,486
------------
CONVERTIBLE BONDS -- 11.9%
AEROSPACE -- 0.6%
Hexcel Corp., 7.000%, 8/01/11 .................. 675,000 560,250
Rohr Industries, 7.000%, 10/01/12 1,600,000 1,392,000
------------
1,952,250
------------
AUTO PARTS -- 0.1%
Exide Corp., 2.900%, 12/15/05 .................. 725,000 400,563
------------
BROADCASTING -- 0.6%
Comcast Corp., 1.125%, 4/15/07 ................. 1,000,000 485,000
Fuqua Industries, 6.500%, 8/04/02 1,860,000 1,446,150
------------
1,931,150
------------
CHEMICALS -- 0.3%
FMC Corp., 6.750%, 1/16/05 ..................... 1,175,000 1,092,750
------------
COMPUTER HARDWARE & PERIPHERALS -- 1.5%
AST Research Inc., Zero Coupon Bond, 12/14/13 .. 5,500,000 1,760,000
Cray Research, 6.125%, 2/01/11 ................. 550,000 437,250
Maxtor Corp., 5.750%, 3/01/12 .................. 3,100,000 2,139,000
Streamlogic Corp., 6.000%, 3/15/12 1,228,000 736,800
------------
5,073,050
------------
ELECTRONICS -- 0.5%
EDO Corp., 7.000%, 12/15/11 .................... 434,000 347,200
Microsemi Corp., 5.875%, 3/01/12 100,000 79,500
Richardson Electronics,
7.250%, 12/15/06 ............................. 450,000 373,500
Zenith Corp., 6.250%, 4/01/11 .................. 1,250,000 978,125
------------
1,778,325
------------
ENTERTAINMENT -- 2.2%
Time Warner, Zero Coupon Bond,
12/17/12 ..................................... 19,900,000 7,213,750
------------
ENVIRONMENTAL SERVICES -- 0.9%
Air & Water Technologies,
8.000%, 5/15/15 .............................. 1,000,000 885,000
Ogden Corp., 6.000%, 6/01/02 ................... 500,000 456,250
Ogden Corp., 5.750%, 10/20/02 .................. 1,750,000 1,588,125
------------
2,929,375
------------
FOOD -- 0.5%
Burns Philp, 5.500%, 4/30/04 ................... 1,645,000 1,400,306
Chiquita Brands International,
7.000%, 3/28/01 (c) .......................... 450,000 389,250
------------
1,789,556
------------
FOREIGN ISSUER -- 0.0%
Emprasas ICA Sociedad,
5.000%, 3/15/04 .............................. 250,000 158,750
------------
HEALTH CARE & RELATED -- 0.5%
Chiron Corp.,
1.900%, 11/17/00(c) .......................... 900,000 858,375
Glycomed, Inc., 7.500%, 1/01/03 ................ 900,000 801,000
Healthsource, Inc.,
5.000%, 3/01/03 .............................. 250,000 193,692
------------
1,853,067
------------
HOME BUILDERS -- 0.1%
Schuler Homes, Inc.,
6.500%, 1/15/03 .............................. 500,000 401,875
------------
MACHINERY -- 0.1%
Trinova, 6.000%, 10/15/02 ...................... 250,000 234,375
------------
OIL & GAS -- 0.0%
Lone Star, 8.000%, 8/27/02 ..................... 100,000 86,000
Noram Energy Corp.,
6.000%, 3/15/12 .............................. 22,500 18,113
------------
104,113
------------
REAL ESTATE -- 2.7%
Federal Realty Investors Trust,
5.250%, 10/28/03 ............................. 2,250,000 1,923,750
Meditrust, 7.500%, 3/01/01 ..................... 750,000 753,750
Rockefeller Properties, Zero Coupon, 12/31/00 .. 7,000,000 4,191,250
Rouse Co., 5.750%, 7/23/02 ..................... 1,850,000 1,824,561
------------
8,693,311
------------
RESTAURANT -- 0.2%
Flagstar Corp.,
10.000%, 11/01/14 ............................ 500,000 297,000
Shoney's, Zero Coupon, 4/11/04 ................. 1,100,000 517,000
------------
814,000
------------
SPECIALTY RETAIL -- 0.4%
CML Group, Inc.,
5.500%, 1/15/03 .............................. 506,000 341,550
General Host Corp.,
8.000%, 2/15/02 .............................. 1,000,000 800,000
Jacobson Stores, Inc.,
6.750%, 12/15/11 ............................. 290,000 226,200
------------
1,367,750
------------
TEXTILE -- 0.3%
Dixie Yarns, 7.000%, 5/15/12 ................... 300,000 228,000
Fieldcrest Cannon, Inc.,
6.000%, 3/15/12 .............................. 1,200,000 942,000
------------
1,170,000
------------
TRUCK & LEASING -- 0.4%
Preston Corp., 7.000%, 5/01/11 ................. 750,000 534,375
Worldway, 6.250%, 4/15/02 ...................... 1,000,000 680,000
------------
1,214,375
------------
TOTAL CONVERTIBLE BONDS
(Identified Cost $39,055,340) ............................. 40,172,385
------------
PREFERRED STOCKS -- 4.1%
Shares
-----------
BANKS -- 1.7%
Bankamerica Corp. .............................. 19,300 1,626,025
Bank of Boston Corp. ........................... 11,700 906,750
Citicorp ....................................... 25,000 2,109,375
First Chicago Corp. ............................ 7,500 626,250
HBSC Americas, Inc. ............................ 11,500 484,438
------------
5,752,838
------------
COMPUTERS -- 0.2%
Unisys Corp. ................................... 24,800 756,400
------------
ENTERTAINMENT -- 0.0%
Time Warner .................................... 250 245,313
------------
Shares
-----------
METALS -- 0.9%
Aluminum Company of America .................... 10,000 645,000
Bethlehem Steel Corp. (c) ...................... 49,550 2,056,325
------------
2,701,325
------------
OIL & GAS -- 0.2%
Kaneb Services ................................. 500 4,625
McDermott, Inc. ................................ 14,500 402,375
Western Gas Resource, Inc. ..................... 5,000 173,750
------------
580,750
------------
UTILITIES -- 1.1%
Central Los Angeles Electric .................. 1,500 114,000
Cleveland Electric ............................. 167 139,445
Connecticut Light & Power ...................... 2,925 59,963
Energy Louisiana, Inc. ......................... 2,600 130,000
Illinois Power ................................. 200 8,400
Indianapolis Power & Light Co. ................. 476 25,347
Jersey Central Power & Light ................... 570 29,355
Long Island Lighting Co. ....................... 15,000 292,500
MDU Resources .................................. 4,820 418,135
Metropolitan Edison Co. ........................ 3,360 161,280
Minnesota Power & Light ........................ 200 12,550
Nevada Power Co. ............................... 19,000 323,000
Niagara Mohawk Power Corp. ..................... 5,000 220,000
Niagara Mohawk Power Corp. ..................... 10,100 179,275
Niagara Mohawk Power Corp. ..................... 10,000 231,250
Niagara Mohawk Power Corp. ..................... 10,500 168,000
Niagara Mohawk Power Corp. ..................... 41,200 731,300
Northern States Power Co. ...................... 700 34,125
Public Service Co. ............................. 360 20,555
Texas Utilities ................................ 1,610 84,525
Texas Utilities ................................ 5,000 455,000
------------
3,838,005
------------
TOTAL PREFERRED STOCKS
(Identified Cost $13,728,334) ............................. 13,874,631
------------
SHORT-TERM INVESTMENTS -- 1.7%
Face
Amount Value (a)
----------- ------------
Repurchase Agreement with State Street Bank &
Trust Co. dated
6/28/96 at 4.750% to be repurchased at
$5,643,233 on
7/01/96 collateralized by $5,705,000 U.S.
Treasury Note, 6.250% due 12/19/96 with a
value of $5,757,982 .......................... $ 5,641,000 $ 5,641,000
------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $5,641,000) .............................. 5,641,000
------------
TOTAL INVESTMENTS -- 97.3%
(Identified cost $325,083,206) (b) .......................... 328,147,502
Cash, Receivables and Other Assets ............................ 14,738,350
Liabilities ................................................... (5,627,671)
------------
TOTAL NET ASSETS -- 100% ...................................... $337,258,181
============
(b) At June 30, 1996 the net unrealized appreciation on investments based on
cost of $325,083,206 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost ........ $ 11,669,150
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value ........ (8,604,854)
------------
Net unrealized appreciation ............................... $ 3,064,296
============
(c) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualfied institutional buyers.
(d) Company filed for Chapter 11 Bankruptcy; non-income producing security.
(e) Step Bond: Coupon rate is zero or below market rate for an initial period
and then increases to a higher coupon rate at a specified date and rate.
(f) Denominated in South African Rand.
(g) Denominated in New Zealand Dollar.
(h) Denominated in Irish Pound.
See accompanying notes to financial statements.
LOOMIS SAYLES GLOBAL BOND FUND
- -------------------------------------------------------------------------------
INVESTMENTS -- as of June 30, 1996
(unaudited)
BONDS AND NOTES -- 95.0%
OF TOTAL NET ASSETS
Face
Currency Amount Value (a)
----------- ---------- ----------
ARGENTINA -- 4.7%
Republic of Argentina,
5.000%, 3/31/23 ................ USD 1,000,000 $ 547,500
-----------
CANADA -- 9.7%
Government of Canada,
8.750%, 12/01/05 ............... CAD 700,000 552,603
Province of Ontario,
8.100%, 9/08/23 ................ CAD 200,000 142,128
Province of Saskatchewan,
9.600%, 2/04/22 ................ CAD 525,000 432,797
-----------
1,127,528
-----------
FINLAND -- 8.1%
Finnish Housing FD,
10.750%, 3/15/02 ............... FIN 2,000,000 519,416
Republic of Finland,
7.250%, 4/18/06 ................ FIN 2,000,000 425,559
-----------
944,975
-----------
GERMANY -- 3.0%
Treuhandanstalt,
7.500%, 9/09/04 ................ GER 500,000 349,554
-----------
GREAT BRITAIN -- 5.4%
Northern Foods,
6.750%, 8/08/08 ................ PS 300,000 $ 397,278
Republic of Austria,
9.00%, 7/22/04 ................. PS 141,000 229,368
-----------
626,646
-----------
IRELAND -- 11.6%
Euro Investment Bank,
7.750%, 8/18/03 ................ IP 270,000 440,440
Irish Permanent BS,
8.500%, 7/15/04 ................ IP 200,000 329,984
Republic of Ireland,
8.250%, 8/18/15 ................ IP 350,000 583,893
-----------
1,354,317
-----------
ITALY -- 7.4%
IMI Bank International, Zero
Coupon Bond, 6/
13/06 .......................... ITL 3,000,000,000 750,122
International Bank Reconstruction
& Development, 10.800%, 5/19/03. ITL 150,000,000 107,265
-----------
857,387
-----------
JAPAN -- 7.5%
Mitsubishi Trust & Banking,
3.250%, 9/30/03 ................ USD 550,000 489,156
Sumitomo Trust & Banking,
1.750%, 3/31/02 ................ USD 500,000 381,875
-----------
871,031
-----------
MEXICO -- 3.9%
Mexico (United Mexico States),
6.250%, 12/31/19 with 700,000
Rights ......................... USD 700,000 452,375
-----------
NEW ZEALAND -- 4.2%
New Zealand,
8.000%, 11/15/06 ............... NZD 750,000 489,410
-----------
POLAND -- 2.0%
Republic of Poland, 3.750%,
10/27/14 (d) ................... USD 300,000 230,250
-----------
SOUTH AFRICA -- 6.0%
Escom, 11.000%, 6/01/08 1,850,000 334,237
Republic of South Africa,
12.000%, 2/28/05 ............... ZAR 1,800,000 358,120
-----------
692,357
-----------
SPAIN -- 4.8%
Government of Spain,
10.000%, 2/28/05 ............... ESP 67,000,000 556,705
-----------
UNITED STATES -- 16.7%
Borden, Inc.,
9.200%, 3/15/21 ................ USD 300,000 275,220
K Mart Corp.,
8.990%, 7/05/10 ................ USD 250,000 217,500
Sappi BVI Finance,
7.500%, 8/01/02 ................ USD 325,000 300,625
TCI Communications, Inc.,
7.875%, 2/15/26 ................ USD 400,000 352,296
United States Treasury Bonds,
6.250%, 8/15/23 ................ USD 300,000 271,968
United States Treasury Bonds,
6.000%, 2/15/26 ................ USD 600,000 532,031
-----------
1,949,640
-----------
TOTAL BONDS AND NOTES
(Identified Cost $10,882,524) .. 11,049,675
-----------
TOTAL INVESTMENTS -- 95.0%
(Identified Cost
$10,882,524) (b) ................. 11,049,675
Cash, Receivables and
Other Assets (c) .................. 713,172
Liabilities ........................ (129,725)
-----------
TOTAL NET ASSETS -- 100% ........... $11,633,122
FORWARD CURRENCY CONTRACTS OUTSTANDING
AT JUNE 30, 1996
Local Aggregate Unrealized
Delivery Currency Face Total Appreciation/
Date Amount Amount Value Depreciation
-------- -------- --------- ----- ------------
Netherlands
Guilder (sell) .. 7/12/96 4,806,000 $2,929,952 $2,817,644 $112,308
Netherlands
Guilder (sell) .. 7/12/96 607,000 366,258 355,870 10,388
Netherlands
Guilder (buy) ... 7/12/96 302,000 177,961 177,055 (906)
Netherlands
Guilder (buy) ... 7/12/96 305,000 179,634 178,814 (820)
Netherlands
Guilder (buy) ... 7/12/96 261,000 153,719 153,018 (701)
Netherlands
Guilder (buy) ... 7/12/96 981,134 572,000 575,216 3,216
Netherlands
Guilder (sell) .. 9/03/96 944,000 556,145 555,544 601
Netherlands
Guilder (sell) .. 10/30/96 96,000 56,190 56,718 (528)
-------
$123,558
========
(a) See Note 1A and 1B.
(b) Federal Tax Information:
At June 30, 1996 the net unrealized appreciation on investments based on
cost for federal income tax purposes of $10,882,524 was as follows:
Aggregate gross unrealized appreciation for all
investments in which there is an excess of value
over tax cost ................................... $312,268
Aggregate gross unrealized depreciation for all
investments in which there is an excess of tax
cost over value ................................. (145,117)
--------
Net unrealized appreciation ..................... $167,151
========
As of June 30, 1996 the Fund had net tax basis loss carry-forwards of
$994,500 and $155,568 which expire on December 31, 2002 and December 31,
2003, respectively.
(c) Including deposits in foreign denominated currencies with a value of
$5,103 and a cost of $5,016.
(d) Step Bond: Coupon rate is zero or below market rate for an initial period
and then increases to a higher coupon rate at a specified date and rate.
CAD = Canadian Dollar ITL = Italian Lire
ESP = Spanish Peseta NZD = New Zealand Dollar
FIN = Finnish Markaa PS = Pound Sterling
GER = Deutsche Mark USD = U.S. Dollar
IP = Irish Punt ZAR = South African Rand
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES U.S. GOVERNMENT SECURITIES FUND
- -------------------------------------------------------------------------------
INVESTMENTS -- as of June 30, 1996
(unaudited)
BONDS AND NOTES -- 99.1%
OF TOTAL NET ASSETS
Face
Amount Value (a)
----------- ------------
GOVERNMENT AGENCIES -- 23.2%
Tennessee Valley Authority,
8.625%, 11/15/29 ............................. $ 4,848,000 $ 5,141,789
------------
U.S. GOVERNMENT -- 75.9%
U.S. Treasury Strips, Zero Coupon
Bonds, 11/15/07 .............................. 1,100,000 506,066
U.S. Treasury Bonds,
8.750%, 11/15/08 ............................. 4,750,000 5,268,795
U.S. Treasury Bonds,
7.500%, 11/15/24 ............................. 10,475,000 11,103,500
------------
16,878,361
------------
TOTAL BONDS AND NOTES
(Identified Cost $22,977,789) ............................. 22,020,150
------------
TOTAL INVESTMENTS -- 99.1%
(Identified Cost $22,977,789) (b)............................ 22,020,150
Cash, Receivables and Other Assets ............................ 272,465
Liabilities ................................................... (80,545)
------------
TOTAL NET ASSETS -- 100% ...................................... $ 22,212,070
===========
(a) See Note 1A.
(b) Federal Tax Information:
At June 30, 1996 the net unrealized depreciation on
investments based on cost of $22,977,789 for federal income
tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost ........ $ 4,138
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value ........ (961,777)
------------
Net unrealized depreciation ............................... $ (957,639)
============
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES MUNICIPAL BOND FUND
- -------------------------------------------------------------------------------
INVESTMENTS -- as of June 30, 1996
(unaudited)
BONDS -- 94.7%
OF TOTAL NET ASSETS
Face
Amount Value (a)
-------- ----------
ALASKA -- 1.2%
Alaska State Housing Finance Corp,
6.600%, 12/1/15 ................................... $ 95,000 $ 97,780
----------
ARIZONA -- 2.0%
Phoenix Street and Highway User,
6.250%, 7/01/11 ................................... 150,000 156,813
----------
CALIFORNIA -- 13.2%
California State, 6.200%, 6/01/06 ................... 100,000 107,488
California State, 6.400%, 9/01/07 ................... 225,000 246,247
California State Department of Water Resources,
5.625%, 12/01/12 .................................. 100,000 99,097
Foothill Eastern, 6.000%, 1/01/16 ................... 250,000 243,558
Foothill Eastern, Zero Coupon Bond,
1/01/23 ........................................... 500,000 84,945
Fresno Sewer Revenue,
6.250%, 9/01/14 ................................... 250,000 267,764
----------
1,049,099
----------
COLORADO -- 2.0%
El Paso County, Zero Coupon Bond,
9/01/15 ........................................... 500,000 156,220
----------
CONNECTICUT -- 4.0%
Connecticut State Resource Recovery Authority,
7.625%, 1/01/09 ................................... 200,000 208,050
Connecticut State Special Tax Obligation 6.125%,
9/01/12 ........................................... 100,000 104,658
----------
312,708
----------
DISTRICT OF COLUMBIA -- 2.8%
District of Columbia,
5.200%, 6/01/04 ................................... 225,000 222,662
----------
FLORIDA -- 4.4%
Florida State Board of Education Capital Outlay,
5.100%, 6/01/09 ................................... 150,000 150,668
Florida State Municipal Power Agency,
5.500%, 10/01/12 .................................. 200,000 195,716
----------
346,384
----------
HAWAII -- 2.3%
Honolulu Hawaii, 5.000%, 10/01/13 ................... 200,000 185,562
----------
ILLINOIS -- 4.0%
Chicago O'Hare International
Airport, 5.000%, 1/1/16 ........................... 150,000 132,890
Illinois Development Finance
Authority Pollution Control,
7.250%, 6/01/11 ................................... 25,000 26,346
Illinois State Sales Tax Revenue,
6.375%, 6/15/14 ................................... 150,000 157,293
----------
316,529
----------
LOUISIANA -- 2.8%
Regional Transportation Authority,
8.000%, 12/01/08 .................................. 200,000 218,040
----------
MAINE -- 2.7%
Portland, 6.150%, 4/01/01 ........................... 200,000 212,832
----------
MASSACHUSETTS -- 2.7%
Plymouth County Certificates of Participation,
6.500%, 4/01/01 ................................... 200,000 209,614
----------
MICHIGAN -- 4.3%
Detroit District State Aid,
5.250%, 5/01/09 ................................... 200,000 195,782
University of Michigan,
5.500%, 4/01/13 ................................... 150,000 145,986
----------
341,768
----------
NEW JERSEY -- 3.7%
New Jersey State Turnpike Authority,
6.500%, 1/01/08 ................................... 200,000 214,592
New Jersey State Turnpike Authority,
6.500%, 1/01/16 ................................... 75,000 80,264
----------
294,856
----------
NEW YORK -- 13.0%
New York City, 7.000%, 8/01/98 ...................... 5,000 5,197
New York State, Certificates of Participation,
5.650%, 8/01/02 ................................... 160,000 159,421
New York State Dormitory Authority,
5.750%, 7/01/08 ................................... 250,000 256,767
New York State Dormitory Authority,
6.375%, 7/01/08 ................................... 200,000 204,712
New York State Environmental Pollution Control,
5.750%, 6/15/10 ................................... 250,000 253,350
New York Urban Development Corp.,
5.625% 1/01/07 .................................... 150,000 144,756
----------
1,024,203
----------
NORTH CAROLINA -- 1.4%
North Carolina Eastern Municipal Power,
7.250%, 1/01/07 ................................... 100,000 108,244
----------
PENNSYLVANIA -- 2.7%
Pennsylvania Finance Authority Revenue Bond,
6.600%, 11/01/09 .................................. 200,000 211,100
----------
PUERTO RICO -- 1.6%
Puerto Rico Telephone Authority Revenue Bond,
5.400%, 1/01/08 ................................... 125,000 127,216
----------
TENNESSEE -- 3.6%
Metropolitan Nashville Airport,
6.600%, 7/01/15 ................................... 30,000 31,737
Shelby County, 5.900%, 3/01/13 ...................... 250,000 254,475
----------
286,212
----------
TEXAS -- 7.5%
Dallas, Fort Worth Regional Airport,
6.000%, 11/01/02 .................................. 100,000 105,203
Manor Texas Independant School District, 5.800%, 8/
01/11 ............................................. 250,000 253,260
United Independent School District,
4.800%, 8/15/07 ................................... 250,000 235,958
----------
594,421
----------
UTAH -- 2.2%
Intermountain Power Agency Utah,
5.000%, 7/01/05 ................................... 175,000 171,768
----------
VIRGINIA -- 1.2%
Virginia State Public School Authority, 5.250%,
1/01/12 ........................................... 100,000 95,804
----------
WASHINGTON -- 4.5%
King County, 5.875%, 1/01/13 ........................ 125,000 126,365
Washington State, 6.375%, 2/01/14 ................... 225,000 232,004
----------
358,369
----------
WISCONSIN -- 1.9%
Milwaukee County,
5.900%, 12/01/12 .................................. 150,000 152,057
----------
WYOMING -- 3.0%
Platte County Pollution Control,
5.100%, 1/01/08 ................................... 250,000 239,970
----------
TOTAL BONDS
(Identified Cost $7,425,084) ...................... 7,490,231
----------
SHORT-TERM INVESTMENTS -- 3.7%
Repurchase Agreement with State Street Bank & Trust
Co. dated 6/28/96 at 4.75% to be repurchased at
$290,115 on 7/1/96 collateralized by $295,000
U.S. Treasury Note 6.50% due 6/30/96 with a value
of $295,353 ....................................... 290,000 290,000
----------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $290,000) .................................. 290,000
----------
TOTAL INVESTMENTS -- 98.4%
(Identified Cost $7,715,084) (b) .............................. 7,780,231
Cash, Receivables and Other Assets .............................. 160,300
Liabilities ..................................................... (33,860)
----------
TOTAL NET ASSETS -- 100% ........................................ $7,906,671
==========
(a) See Note 1A.
(b) Federal Tax Information:
At June 30, 1996 the net unrealized appreciation on
investments based on cost of $7,715,084 for federal income
tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost ......... $ 138,662
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value ......... (73,515)
----------
Net unrealized appreciation ................................. $ 65,147
==========
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES SHORT-TERM BOND FUND
- -------------------------------------------------------------------------------
INVESTMENTS -- as of June 30, 1996
(unaudited)
BONDS AND NOTES -- 94.2%
OF TOTAL NET ASSETS
Face
Amount Value (a)
---------- ------------
AEROSPACE -- 4.0%
Lockheed Corp., 5.875%, 3/15/98 .................. $ 200,000 $ 197,822
Lockheed Martin Corp.,
6.550%, 5/15/99 ................................ 570,000 569,060
-----------
766,882
-----------
AIRLINES -- 4.3%
Delta Air Lines,
7.790%, 12/01/98 ............................... 800,000 814,160
-----------
BANKS -- 7.6%
Capital One Bank,
6.830%, 5/17/99 ................................ 560,000 559,076
Household Bank FSB,
6.250%, 4/01/99 ................................ 900,000 890,982
-----------
1,450,058
-----------
COMPUTER EQUIPMENT -- 3.4%
Comdisco, Inc., 5.760%, 1/19/99 .................. 670,000 657,404
-----------
FINANCIAL -- 11.4%
Chrysler Financial Corp.,
6.500%, 6/15/98 ................................ 200,000 200,322
Great Western Financial Corp.,
6.125%, 6/15/98 ................................ 625,000 621,013
Sears Roebuck Acceptance Corp.,
6.500%, 6/15/00 ................................ 1,000,000 988,610
World Omni Automobile Lease,
6.550%, 6/25/02 ................................ 370,000 368,816
-----------
2,178,761
-----------
FOOD & BEVERAGE -- 2.7%
RJR Nabisco, 8.625%, 12/01/02 .................... $ 500,000 $ 506,995
-----------
HEALTHCARE -- 4.4%
Hospital Corp. of America, Zero
Coupon Bond, 6/01/00 ........................... 1,100,000 844,481
-----------
INDUSTRIAL -- 5.3%
Unisys Corp., 9.750%, 9/15/96 .................... 1,000,000 1,006,250
-----------
MEDIA & ENTERTAINMENT -- 4.0%
Time Warner, 7.450%, 2/01/98 ..................... 545,000 550,902
Time Warner, 7.950%, 2/01/00 ..................... 200,000 204,300
-----------
755,202
-----------
GOVERNMENT AGENCY -- 3.7%
Federal Home Loan Mortgage Corp., 6.500%, 7/15/10 750,000 715,673
-----------
MISCELLANEOUS -- 2.2%
News America Holdings,
9.125%, 10/15/99 ............................... 400,000 425,724
-----------
RETAIL -- 2.9%
Federated Department Stores, Inc., 8.500%, 6/15/03
................................................ 560,000 561,982
-----------
SECURITIES -- 8.4%
Lehman Brothers, Inc.,
6.375%, 6/01/98 ................................ 625,000 621,606
Smith Barney, Inc.,
5.500%, 1/15/99 ................................ 990,000 963,934
-----------
1,585,540
-----------
TECHNOLOGY -- 4.0%
Tektronix, Inc., 7.625%, 8/15/02 ................. 750,000 754,800
-----------
TELECOMMUNICATIONS -- 2.9%
TCI Communications,
7.250%, 6/15/99 ................................ 550,000 551,282
-----------
GOVERNMENT -- 19.7%
United States Treasury Notes,
5.750%, 10/31/97 ............................... 3,410,000 3,401,475
United States Treasury Notes,
6.125%, 7/31/00 ................................ 330,000 326,340
-----------
3,727,815
-----------
UTILITIES -- 3.3%
Detroit Edison, 6.340%, 3/15/00 .................. 670,000 656,826
-----------
TOTAL BONDS AND NOTES
(Identified Cost $17,952,224) .............................. 17,959,835
-----------
SHORT-TERM INVESTMENTS -- 2.3%
Repurchase Agreement with State
Street Bank & Trust Co. dated
6/28/96 to be repurchased at
$434,172 on 7/01/96 col-
lateralized by U.S. Treasury Bills
due 12/19/96 with a value
of $443,542..................................... 434,000 434,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $434,000) ................................. 434,000
-----------
TOTAL INVESTMENTS -- 96.5%
(Identified Cost $18,386,224) (b) ............................ $18,393,835
Cash Receivables and Other Assets .............................. 1,082,159
Liabilities .................................................... (413,420)
-----------
TOTAL NET ASSETS -- 100% ....................................... $19,062,574
===========
(a) See Note 1A.
(b) Federal Tax Information:
At June 30, 1996 the net unrealized appreciation on
investments based on cost of $18,386,224 for federal income
tax purposes was as follows:
Aggregate gross unrealized appreciation for all investments
in which there is an excess of value over tax cost ......... $ 89,930
Aggregate gross unrealized depreciation for all investments
in which there is an excess of tax cost over value ......... (82,319)
-----------
Net unrealized appreciation ................................ $ 7,611
===========
At June 30, 1996 the Fund had a net tax basis loss carry-forward of
$134,110 which expires December 31, 2002.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
LOOMIS SAYLES FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES -- June 30, 1996
(unaudited)
Growth International
Growth & Income Small Cap Equity Worldwide
------------- --------------- ---------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at value:
Securities ................ $49,451,849 $38,580,176 $107,990,564 $83,359,356 $3,877,373
Repurchase agreements ..... 0 0 0 1,356,000 125,000
----------- ----------- ------------ ----------- ----------
Total investments ........... 49,451,849 38,580,176 107,990,564 84,715,356 4,002,373
Cash ........................ 0 0 613 884 28
Foreign currency at value 0 0 0 3,803,361 0
Receivable for:
Shares of the Fund sold 384,679 7,603 423,130 508,874 679,126
Securities sold ........... 569,231 111,937 987,943 12,199 0
Dividends and interest
-- net .................. 30,252 90,179 142,367 91,966 50,888
Foreign tax reclaim --
net ..................... 0 0 0 134,158 205
Due from the adviser ........ 0 0 0 0 17,593
Unamortized organization
expenses .................. 0 0 0 0 7,477
----------- ----------- ------------ ----------- -----------
50,436,011 38,789,895 109,544,617 89,266,798 4,757,690
----------- ----------- ------------ ----------- -----------
LIABILITIES
Payable for:
Securities purchased ...... 373,733 63,290 770,540 2,900,165 0
Forward currency
contracts -- net ........ 0 0 0 143,472 0
Shares of the Fund
redeemed ................ 1,268,671 521,236 1,110,262 705,938 0
Foreign taxes ............. 0 0 0 10,927 854
Organization expenses ..... 0 0 0 0 8,831
Accrued expenses:
Management fees ........... 29,971 23,605 91,796 70,115 0
Trustees' fees ............ 1,250 1,250 1,250 1,250 1,250
Accounting and
administration .......... 864 864 864 864 864
Other expenses ............ 21,883 26,839 40,394 78,369 18,307
----------- ----------- ------------ ----------- ----------
1,696,372 637,084 2,015,106 3,911,100 30,106
----------- ----------- ------------ ----------- ----------
NET ASSETS .................... $48,739,639 $38,152,811 $107,529,511 $85,355,698 $4,727,584
=========== =========== ============ =========== ==========
Net Assets consist of:
Capital paid in ........... $32,377,458 $28,519,551 $79,989,553 $77,628,702 $4,679,335
Undistributed net
investment income (loss) . (113,063) 301,405 266,529 767,530 30,228
Accumulated net realized
gains (losses) .......... 6,630,601 2,512,320 12,946,610 2,971,674 (1,555)
Unrealized appreciation
(depreciation) on:
Investments ............. 9,844,643 6,819,535 14,326,819 4,132,479 19,379
Foreign currency
transactions .......... 0 0 0 (144,687) 197
----------- ----------- ------------ ----------- ----------
NET ASSETS .................... $48,739,639 $38,152,811 $107,529,511 $85,355,698 $4,727,584
=========== =========== ============ =========== ==========
Shares of beneficial
interest outstanding,
no par value ................ 2,845,771 2,444,263 6,053,489 6,783,188 467,129
=========== =========== ============ =========== ==========
Computation of offering price:
Net asset value and
redemption price per share
(Net assets / shares of
beneficial interest
outstanding) ................ $17.13 $15.61 $17.76 $12.58 $10.12
=========== =========== ============ =========== ==========
Identified cost of
investments ................. $39,607,206 $31,760,641 $ 93,663,745 $80,582,877 $3,982,994
=========== =========== ============ =========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
LOOMIS SAYLES FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES -- June 30, 1996
(unaudited)
U.S.
Global Government Municipal Short-Term
Bond Bond Securities Bond Bond
------------- --------------- ---------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at value:
Securities ................ $322,506,502 $11,049,675 $22,020,150 $7,490,231 $17,959,835
Repurchase agreements ..... 5,641,000 0 0 290,000 434,000
------------ ----------- ----------- ---------- -----------
Total investments ........... 328,147,502 11,049,675 22,020,150 7,780,231 18,393,835
Cash ........................ 856,893 37,231 42,555 838 423
Foreign currency at value ... 0 5,103 0 0 0
Receivable for:
Shares of the Fund sold ... 4,298,498 209,124 23,060 0 856,745
Securities sold ........... 2,499,832 0 0 0 0
Foreign currency
contracts - net ......... 0 123,558 0 0 0
Dividends and interest -
net ..................... 7,083,127 304,751 206,850 139,489 223,336
Due from the adviser ........ 0 33,405 0 19,973 0
Unamortized organization
expenses .................. 0 0 0 0 1,655
------------ ----------- ----------- ---------- -----------
342,885,852 11,762,847 22,292,615 7,940,531 19,475,994
------------ ----------- ----------- ---------- -----------
LIABILITIES
Payable for:
Securities purchased ...... 5,009,762 0 0 0 0
Shares of the Fund
redeemed ................ 386,208 99,385 37,349 0 368,698
Dividends declared ........ 0 0 0 7,504 5,889
Accrued expenses:
Management fees ........... 157,851 0 21,346 0 13,526
Trustees' fees ............ 1,250 1,250 1,250 1,250 1,250
Accounting and
administration .......... 864 864 864 864 864
Other expenses ............ 71,736 28,226 19,736 24,242 23,193
------------ ----------- ----------- ---------- -----------
5,627,671 129,725 80,545 33,860 413,420
------------ ----------- ----------- ---------- -----------
NET ASSETS .................... $337,258,181 $11,633,122 $22,212,070 $7,906,671 $19,062,574
============ =========== =========== ========== ===========
Net Assets consist of:
Capital paid in ........... $321,700,269 $11,637,550 $23,687,899 $7,771,781 $19,543,467
Undistributed net
investment income ........ 7,050,769 515,154 370,604 3,778 11,328
Accumulated net realized
gains (losses) .......... 5,437,884 (810,605) (888,794) 65,965 (499,832)
Unrealized appreciation
(depreciation) on:
Investments ............. 3,064,296 167,151 (957,639) 65,147 7,611
Foreign currency
transactions .......... 4,963 123,872 0 0 0
------------ ----------- ----------- ---------- -----------
NET ASSETS .................... $337,258,181 $11,633,122 $22,212,070 $7,906,671 $19,062,574
============ =========== =========== ========== ===========
Shares of beneficial
interest outstanding,
no par value ................ 27,718,757 966,161 2,225,584 712,029 1,980,074
Computation of offering price:
Net asset value and
redemption price per share
(Net assets / shares of
beneficial interest
outstanding) .............. $ 12.17 $ 12.04 $ 9.98 $ 11.10 $ 9.63
============ =========== =========== ========== ===========
Identified cost of
investments ................. $325,083,206 $10,882,524 $22,977,789 $7,715,084 $18,386,224
============ =========== =========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
LOOMIS SAYLES FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS -- For the Six Months Ended June 30, 1996
(unaudited)
Growth International
Growth & Income Small Cap Equity Worldwide
------------- --------------- ---------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends .................. $ 129,160 $ 478,594* $ 552,274 $1,300,210* $ 9,271*
Interest ................... 12,923 43,726 311,061 63,664 27,437
---------- ---------- ----------- ---------- -------
142,083 522,320 863,335 1,363,874 36,708
---------- ---------- ----------- ---------- -------
Expenses
Management fees .......... 175,385 145,578 503,934 416,325 4,860
Trustees' fees and
expenses ............... 3,168 3,168 3,168 3,168 1,250
Accounting and
administrative fees .... 5,182 5,182 5,182 5,182 1,657
Custodian ................ 26,514 27,218 40,090 143,512 6,100
Transfer agent ........... 14,361 15,370 25,268 19,465 3,122
Audit and tax services ... 7,000 7,000 7,000 7,000 3,500
Legal .................... 2,755 2,755 2,755 2,755 500
Printing ................. 1,639 1,812 5,034 2,670 0
Registration ............. 16,792 18,614 17,633 20,886 6,590
Amortization of
organization
expenses ............... 1,795 1,743 1,743 1,795 1,354
Miscellaneous ............ 555 555 555 555 0
---------- ---------- ----------- ---------- -------
255,146 228,995 612,362 623,313 28,933
Less expenses assumed
by the investment
adviser ................ 0 0 0 0 (22,453)
---------- ---------- ----------- ---------- -------
Net investment income
(loss) .................... (113,063) 293,325 250,973 740,561 30,228
---------- ---------- ----------- ---------- -------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Realized gain (loss) on:
Investments -- net ....... 5,201,107 1,555,211 10,207,554 4,415,152 (1,532)
Foreign currency
transactions -- net .... 0 0 0 (1,046,878) (23)
---------- ---------- ----------- ---------- -------
Total realized gain
(loss) on investments
and foreign currency
transactions ........... 5,201,107 1,555,211 10,207,554 3,368,274 (1,555)
---------- ---------- ----------- ---------- -------
Unrealized appreciation
(depreciation) on:
Investments -- net ...... 281,838 830,662 4,317,430 2,473,695 19,379
Foreign currency
transactions -- net ... 0 0 0 (149,613) 197
---------- ---------- ----------- ---------- -------
Total unrealized
appreciation
(depreciation) on
investments and
foreign currency
transactions .......... 281,838 830,662 4,317,430 2,324,082 19,576
---------- ---------- ----------- ---------- -------
Net gain (loss) on
investments and foreign
currency transactions ..... 5,482,945 2,385,873 14,524,984 5,692,356 18,021
---------- ---------- ----------- ---------- -------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS ...... $5,369,882 $2,679,198 $14,775,957 $6,432,917 $48,249
========== ========== =========== ========== =======
</TABLE>
- ----------
*Net of foreign withholding taxes of $5,189, $222,528 and $1,603 for the
Growth and Income, International Equity and Worldwide Funds, respectively.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
LOOMIS SAYLES FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS -- For the Six Months Ended June 30, 1996
(unaudited)
Global Government Municipal Short-Term
Bond Bond Securities Bond Bond
------------- --------------- ---------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends .................. $ 640,709 $ 0 $ 0 $ 0 $ 0
Interest ................... 12,489,343 470,976 854,220 218,720 726,150
---------- ---------- ----------- ---------- -------
13,130,052 470,976 854,220 218,720 726,150
---------- ---------- ----------- ---------- -------
Expenses
Management fees .......... 899,210 43,302 69,447 23,345 55,095
Trustees' fees and
expenses ............... 3,168 3,168 3,168 3,168 3,168
Accounting and
administrative fees .... 5,182 5,182 5,182 5,182 5,182
Custodian ................ 83,258 27,795 19,275 23,999 20,266
Transfer agent ........... 87,726 11,643 11,115 10,424 11,921
Audit and tax services ... 7,000 22,300 7,000 7,000 7,000
Legal .................... 2,755 2,755 2,755 2,755 2,755
Printing ................. 18,393 608 513 370 700
Registration ............. 63,740 16,797 16,797 19,995 15,805
Amortization of
organization
expenses ............... 1,795 1,785 1,846 1,928 782
Miscellaneous ............ 555 555 266 266 555
---------- ---------- ----------- ---------- -------
1,172,782 135,890 137,364 98,432 123,229
Less expenses assumed
by the investment
adviser ................ 0 (49,286) (21,619) (59,524) (13,039)
---------- ---------- ----------- ---------- -------
Net investment income ...... 11,957,270 384,372 738,475 179,812 615,960
---------- ---------- ----------- ---------- -------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Realized gain (loss) on:
Investments -- net ....... 4,111,119 356,680 (288,519) 32,241 (126,414)
Foreign currency
transactions -- net .... (300,660) 31,518 0 0 0
---------- ---------- ----------- ---------- -------
Total realized gain
(loss) on investments
and foreign currency
transactions ........... 3,810,459 388,198 (288,519) 32,241 (126,414)
---------- ---------- ----------- ---------- -------
Unrealized appreciation
(depreciation) on:
Investments -- net ...... (14,265,294) (310,207) (1,593,660) (325,937) (315,727)
Foreign currency
transactions -- net ... 9,855 151,220 0 0 0
---------- ---------- ----------- ---------- -------
Total unrealized
appreciation
(depreciation) on
investments and
foreign currency
transactions .......... (14,255,439) (158,987) (1,593,660) (325,937) (315,727)
---------- ---------- ----------- ---------- -------
Net gain (loss) on
investments and foreign
currency transactions ..... (10,444,980) 229,211 (1,882,179) (293,696) (442,141)
---------- ---------- ----------- ---------- -------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS ...... $ 1,512,290 $ 613,583 $(1,143,704) $(113,884) $173,819
============ ========= =========== ========= ========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
LOOMIS SAYLES FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
(unaudited)
Growth Growth & Income
--------------------------- --------------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1996 1995 June 30, 1996 1995
------------- ------------ ------------- -------------
FROM OPERATIONS
<S> <C> <C> <C> <C>
Net investment income (loss) ................... $ (113,063) $ (123,890) $ 293,325 $ 521,147
Net realized gain (loss) on investments ........ 5,201,107 4,581,895 1,555,211 3,594,928
Unrealized appreciation (depreciation) on
investments .................................. 281,838 6,679,650 830,662 5,292,649
----------- ----------- ----------- -----------
Increase (decrease) in net assets from
operations ................................. 5,369,882 11,137,655 2,679,198 9,408,724
----------- ----------- ----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income .......................... 0 0 0 (513,067)
Net realized gain on investments ............... 0 (3,016,659) 0 (2,633,743)
----------- ----------- ----------- -----------
0 (3,016,659) 0 (3,146,810)
----------- ----------- ----------- -----------
FROM CAPITAL SHARES TRANSACTIONS
Proceeds from the sale of shares ............... 6,739,584 6,743,238 4,647,287 9,763,336
Net asset value of shares issued in
connection with the reinvestment of:
Dividends from net investment
income ..................................... 0 0 0 498,057
Distributions from net realized gain
on investments 0 2,999,240 0 2,571,637
----------- ----------- ----------- -----------
6,739,584 9,742,478 4,647,287 12,833,030
Cost of shares redeemed ........................ (8,380,599) (9,432,496) (5,638,970) (8,575,637)
----------- ----------- ----------- -----------
Increase (decrease) in net assets derived from
capital share transactions ................... (1,641,015) 309,982 (991,683) 4,257,393
----------- ----------- ----------- -----------
Total increase (decrease) in net assets ...... 3,728,867 8,430,978 1,687,515 10,519,307
NET ASSETS
Beginning of the period ........................ 45,010,772 36,579,794 36,465,296 25,945,989
----------- ----------- ----------- -----------
End of the period $ 48,739,639 $ 45,010,772 $38,152,811 $36,465,296
============ ============ =========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
Beginning of the period ........................ $ 0 $ 0 $ 8,080 $ 7,159
============ ============ =========== ===========
End of the period $ (113,063) $ 0 $ 301,405 $ 8,080
============ ============ =========== ===========
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares ................. 432,416 455,569 309,505 685,323
Issued in connection with the
reinvestment of:
Dividends from net investment income ....... 0 0 0 34,349
Distributions from net realized
gain on investments ...................... 0 197,448 0 177,354
------------ ----------- ----------- -----------
432,416 653,017 309,505 897,026
Redeemed ...................................... (535,268) (630,949) (368,225) (592,596)
------------ ----------- ----------- -----------
Net change .................................... (102,852) 22,068 (58,720) 304,430
============ =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
LOOMIS SAYLES FUNDS
- ---------------------------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
(unaudited)
Small Cap International Equity
--------------------------- --------------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1996 1995 June 30, 1996 1995
------------- ------------ ------------- -------------
FROM OPERATIONS
<S> <C> <C> <C> <C>
Net investment income (loss) ................... $ 250,973 $ 239,916 $ 740,561 $ 910,017
Net realized gain (loss) on:
Investments .................................. 10,207,554 11,656,271 4,415,152 594,383
Foreign currency transactions ................ 0 0 (1,046,878) 4,270,563
Unrealized appreciation (depreciation) on:
Investments .................................. 4,317,430 11,080,439 2,473,695 226,437
Foreign currency transactions ................ 0 0 (149,613) 249
------------ ----------- ----------- -----------
Increase (decrease) in net assets from
operations ................................. 14,775,957 22,976,626 6,432,917 6,001,649
------------ ----------- ----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income .......................... 0 (224,360) 0 (910,769)
Net realized gain on investments ............... 0 (8,478,430) 0 (5,260,890)
------------ ----------- ----------- -----------
0 (8,702,790) 0 (6,171,659)
------------ ----------- ----------- -----------
FROM CAPITAL SHARES TRANSACTIONS
Proceeds from the sale of shares ............... 22,409,988 29,603,453 8,592,128 18,394,310
Net asset value of shares issued in
connection with the reinvestment of:
Dividends from net investment
income ................................... 0 189,254 0 650,344
Distributions from net realized gain
on investments ............................. 0 8,261,382 0 4,560,342
------------ ----------- ----------- ------------
22,409,988 38,054,089 8,592,128 23,604,996
Cost of shares redeemed ........................ (20,111,369) (34,998,594) (9,157,557) (17,135,420)
------------ ----------- ----------- ------------
Increase (decrease) in net assets derived from
capital share transactions ................... 2,298,619 3,055,495 (565,429) 6,469,576
------------ ----------- ----------- ------------
Total increase (decrease) in net assets ...... 17,074,576 17,329,331 5,867,488 6,299,566
NET ASSETS
Beginning of the period ........................ 90,454,935 73,125,604 79,488,210 73,188,644
------------ ----------- ----------- -----------
End of the period .............................. $107,529,511 $90,454,935 $85,355,698 $79,488,210
============ =========== =========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
Beginning of the period ........................ $ 15,556 $ 0 $ 26,969 $ 30,955
============ =========== =========== ===========
End of the period .............................. $ 266,529 $ 15,556 $ 767,530 $ 26,969
============ =========== =========== ===========
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares ................. 1,336,874 1,963,189 706,555 1,461,365
Issued in connection with the
reinvestment of:
Dividends from net investment income ....... 0 12,525 0 56,064
Distributions from net realized
gain on investments ...................... 0 546,749 0 393,133
------------ ----------- ----------- -----------
1,336,874 2,522,463 706,555 1,910,562
Redeemed ...................................... (1,184,998) (2,308,929) (749,220) (1,386,940)
------------ ----------- ----------- -----------
Net change .................................... 151,876 213,534 (42,665) 523,622
============ =========== =========== ===========
</TABLE>
See accompanying notes to financials
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(unaudited)
<TABLE>
<CAPTION>
Worldwide Bond
------------------------- ---------------------------
The period May 1, 1996(*) Six Months Year Ended
through Ended December 31,
June 30, 1996 June 30, 1996 1995
-------------- ------------- ------------
<S> <C> <C> <C>
FROM OPERATIONS
Net investment income ........................................ $ 30,228 $ 11,957,270 $ 12,725,174
Net realized gain (loss) on:
Investments ................................................ (1,532) 4,111,119 3,447,177
Foreign currency transactions .............................. (23) (300,660) 73,512
Unrealized appreciation (depreciation) on:
Investments ................................................ 19,379 (14,265,294) 25,344,384
Foreign currency transactions .............................. 197 9,855 5,808
---------- ------------ ------------
Increase (decrease) in net assets from operations .......... 48,249 1,512,290 41,596,055
---------- ------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ........................................ 0 (4,941,090) (12,732,055)
In excess of net investment income ........................... 0 0 (38,412)
Net realized gain on investments ............................. 0 0 (1,623,664)
---------- ------------ ------------
0 (4,941,090) (14,394,131)
---------- ------------ ------------
FROM CAPITAL SHARES TRANSACTIONS
Proceeds from sale of shares ................................. 4,679,325 152,588,024 177,617,553
Net asset value of shares issued in connection with
reinvestment of:
Dividends from net investment income ..................... 0 3,864,767 10,366,906
Distributions from net realized gain on investments ...... 0 0 1,355,342
---------- ------------ ------------
4,679,325 156,452,791 189,339,801
Cost of shares redeemed ...................................... 0 (71,475,967) (43,817,094)
---------- ------------ ------------
Increase (decrease) in net assets derived from
capital share transactions ................................. 4,679,325 84,976,824 145,522,707
---------- ------------ ------------
Total increase (decrease) in net assets ................... 4,727,574 81,548,024 172,724,631
NET ASSETS
Beginning of the period ...................................... 10 255,710,157 82,985,526
---------- ------------ ------------
End of the period $4,727,584 $337,258,181 $255,710,157
========== ============ ============
UNDISTRIBUTED NET INVESTMENT INCOME
Beginning of the period ...................................... $ 0 $ 34,589 $ 6,881
========== ============ ============
End of the period ............................................ $ 30,228 $ 7,050,769 $ 34,589
========== ============ ============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares ............................... 467,128 12,509,283 15,342,582
Issued in connection with the reinvestment of:
Dividends from net investment income ....................... 0 327,800 874,768
Distributions from net realized gain on investments ........ 0 0 110,640
---------- ------------ ------------
467,128 12,837,083 16,327,990
Redeemed ..................................................... 0 (5,930,134) (3,771,731)
---------- ------------ ------------
Net change ................................................... 467,128 6,906,949 12,556,259
</TABLE>
- ----------
(*) Commencement of Operations
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
(unaudited)
<TABLE>
<CAPTION>
Global Bond U.S. Government Securities
--------------------------- -----------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1996 1995 June 30, 1996 1995
------------- ------------ ------------- -----------
FROM OPERATIONS
<S> <C> <C> <C> <C>
Net investment income ............. $ 384,372 $ 1,159,866 $ 738,475 $ 1,160,540
Net realized gain (loss) on:
Investments ..................... 356,680 (1,498,225) (288,519) 425,319
Foreign currency transactions ... 31,518 1,239,618 0 0
Unrealized appreciation
(depreciation) on:
Investments ..................... (310,207) 1,843,562 (1,593,660) 2,181,498
Foreign currency transactions ... 151,220 (366,433) 0 0
----------- ----------- ----------- -----------
Increase (decrease) in net
assets from operations ........ 613,583 2,378,388 (1,143,704) 3,767,357
----------- ----------- ----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ............. 0 (662,906) (366,338) (1,161,263)
----------- ----------- ----------- -----------
FROM CAPITAL SHARES TRANSACTIONS
Proceeds from sale of shares ...... 3,502,539 2,253,543 7,646,507 5,690,298
Net asset value of shares issued in
connection with reinvestment of:
Dividends from net investment
income ........................ 0 591,588 348,070 1,106,365
----------- ----------- ----------- -----------
3,502,539 2,845,131 7,994,577 6,796,663
Cost of shares redeemed ........... (2,787,305) (19,840,371) (3,771,615) (7,244,201)
----------- ----------- ----------- -----------
Increase (decrease) in net assets
derived from capital share
transactions .................... 715,234 (16,995,240) 4,222,962 (447,538)
----------- ----------- ----------- -----------
Total increase (decrease) in net
assets ........................ 1,328,817 (15,279,758) 2,712,920 2,158,556
NET ASSETS
Beginning of the period ........... 10,304,305 25,584,063 19,499,150 17,340,594
----------- ----------- ----------- -----------
End of the period ................. $11,633,122 $10,304,305 $22,212,070 $19,499,150
=========== =========== =========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
Beginning of the period ........... $ 130,782 $ (311,874) $ (1,533) $ 7,255
=========== =========== =========== ===========
End of the period ................. $ 515,154 $ 130,782 $ 370,604 $ (1,533)
=========== =========== =========== ===========
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares .... 301,648 202,475 732,035 559,951
Issued in connection with the
reinvestment of:
Dividends from net investment
income ........................ 0 52,122 35,590 108,429
----------- ----------- ----------- -----------
301,648 254,597 767,625 668,380
Redeemed .......................... (239,939) (1,954,416) (374,361) (717,258)
----------- ----------- ----------- -----------
Net change ........................ 61,709 (1,699,819) 393,264 (48,878)
=========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
(unaudited)
<TABLE>
<CAPTION>
Municipal Bond Short-Term Bond
--------------------------- -----------------------------
Six Months Year Ended Six Months Year Ended
Ended December 31, Ended December 31,
June 30, 1996 1995 June 30, 1996 1995
------------- ------------ ------------- -----------
FROM OPERATIONS
<S> <C> <C> <C> <C>
Net investment income ............... $ 179,812 $ 361,208 $ 615,960 $ 1,607,847
Net realized gain (loss) on
Investments ....................... 32,241 77,654 (126,414) (206,571)
Unrealized appreciation (depreciation)
on Investments .................... (325,937) 733,237 (315,727) 1,090,876
----------- ----------- ----------- -----------
Increase (decrease) in net
assets from operations .......... (113,884) 1,172,099 173,819 2,492,152
----------- ----------- ----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ............... (179,863) (361,164) (612,698) (1,607,847)
Net realized gain on investments .... 0 (28,145) 0 (366)
----------- ----------- ----------- -----------
(179,863) (389,309) (612,698) (1,608,213)
----------- ----------- ----------- -----------
FROM CAPITAL SHARES TRANSACTIONS
Proceeds from sale of shares ........ 432,323 797,246 3,782,425 25,274,557
Net asset value of shares issued in
connection with reinvestment of:
Dividends from net investment
income .......................... 131,111 261,821 565,965 1,534,306
Distributions from net realized
gain ............................ 0 22,507 0 0
----------- ----------- ----------- -----------
563,434 1,081,574 4,348,390 26,808,863
Cost of shares redeemed ............. (323,857) (1,173,536) (10,886,369) (21,093,620)
----------- ----------- ----------- -----------
Increase (decrease) in net assets
derived from capital share
transactions ...................... 239,577 (91,962) (6,537,979) 5,715,243
----------- ----------- ----------- -----------
Total increase (decrease) in net
assets .......................... (54,170) 690,828 (6,976,858) 6,599,182
NET ASSETS
Beginning of the period ............. 7,960,841 7,270,013 26,039,432 19,440,250
----------- ----------- ----------- -----------
End of the period ................... $ 7,906,671 $ 7,960,841 $19,062,574 $26,039,432
=========== =========== =========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
Beginning of the period ............. $ 3,829 $ 3,028 $ 8,066 $ 0
=========== =========== =========== ===========
End of the period ................... $ 3,778 $ 3,829 $ 11,328 $ 8,066
=========== =========== =========== ===========
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares ...... 38,810 71,573 389,014 2,610,568
Issued in connection with the
reinvestment of:
Dividends from net investment
income .......................... 11,672 23,555 58,311 158,326
Distributions from net realized
gain ............................ 0 1,957 0 0
----------- ----------- ----------- -----------
50,482 97,085 447,325 2,768,894
Redeemed ............................ (28,681) (105,539) (1,120,640) (2,169,448)
----------- ----------- ----------- -----------
Net change .......................... 21,801 (8,454) (673,315) 599,446
=========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
<CAPTION>
Growth Fund
---------------------------------------------------------------------
6 Months Year Ended December 31, May 16* to
Ended --------------------------------------- December 31,
June 30, 1996 1995 1994 1993 1992 1991
-------------- ----- ----- ----- ----- --------
Net asset value,
<S> <C> <C> <C> <C> <C> <C>
beginning of period..... $15.27 $12.50 $13.02 $12.46 $12.01 $10.00
------ ------ ------ ------ ------ ------
Income from investment
operations --
Net investment income
(loss) ............... (0.04) (0.00) (0.02) 0.00 (0.04) 0.00
Net realized and
unrealized gain (loss)
on investments ....... 1.90 3.86 (0.45) 1.16 0.49 2.45
------ ------ ------ ------ ------ ------
Total from investment
operations ......... 1.86 3.86 (0.47) 1.16 0.45 2.45
------ ------ ------ ------ ------ ------
Less distributions --
Distributions from net
realized capital
gains ................ 0.00 (1.09) (0.04) (0.60) 0.00 (0.44)
Distributions from
capital .............. 0.00 0.00 (0.01) 0.00 0.00 0.00
------ ------ ------ ------ ------ ------
Total distributions .. 0.00 (1.09) (0.05) (0.60) 0.00 (0.44)
------ ------ ------ ------ ------ ------
Net asset value, end of
period ................. $17.13 $15.27 $12.50 $13.02 $12.46 $12.01
====== ====== ====== ====== ====== ======
Total return (%) ......... 12.2 30.9 (3.7) 9.3 3.8 24.5
Net assets, end of
period (000) ........... $48,740 $45,011 $36,580 $32,385 $24,451 $16,105
Ratio of operating expenses
to average net assets (%) 1.09** 1.08 1.16 1.20 1.50 1.50**
Ratio of net investment
income to average net
assets (%) ............. (0.48)** (0.29) (0.14) (0.17) (0.45) 0.01**
Portfolio turnover
rate (%) ............... 116** 48 46 64 98 69**
Average commission rate*** $0.0362 -- -- -- -- --
The ratios of expenses
to average net assets
with out giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
would have been (%)...... 1.09** 1.08 1.16 1.20 1.51 1.66**
Without giving effect to
the voluntary expense
limitations described
in Note 3 to the
Financial Statements
net investment income
per share would have been: $ (0.04) $ 0.00 $ (0.02) $ 0.00 $ (0.04) $ (0.01)
- ----------
(*)Commencement of operations.
(**)Computed on an annualized basis.
(***)For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades
upon which commissions are charged. This rate generally does not reflect
mark-ups, mark-downs or spreads on shares traded on a principal basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
<CAPTION>
Growth & Income Fund
----------------------------------------------------------------------
6 Months Year Ended December 31, May 13* to
Ended --------------------------------------- December 31,
June 30, 1996 1995 1994 1993 1992 1991
-------------- ----- ----- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ............... $14.57 $11.80 $12.49 $11.53 $10.54 $10.00
------ ------ ------ ------ ------ ------
Income from investment
operations --
Net investment income ... 0.12 0.23 0.15 0.13 0.13 0.12
Net realized and
unrealized gain (loss)
on investments ........ 0.92 3.93 (0.26) 1.24 1.36 0.59
------ ------ ------ ------ ------ ------
Total from investment
operations .......... 1.04 4.16 (0.11) 1.37 1.49 0.71
------ ------ ------ ------ ------ ------
Less distributions --
Dividends from net
investment income ..... 0.00 (0.23) (0.15) (0.12) (0.13) (0.12)
Distributions from net
realized capital
gains ................. 0.00 (1.16) (0.43) (0.29) (0.37) (0.05)
------ ------ ------ ------ ------ ------
Total distributions ... 0.00 (1.39) (0.58) (0.41) (0.50) (0.17)
------ ------ ------ ------ ------ ------
Net asset value,
end of period ........... $15.61 $14.57 $11.80 $12.49 $11.53 $10.54
====== ====== ====== ====== ====== ======
Total return (%) .......... 7.1 35.2 (0.9) 11.9 14.1 7.2
Net assets, end of
period (000) ............ $38,153 $36,465 $25,946 $20,657 $12,279 $7,689
Ratio of operating expenses
to average net assets (%) 1.18** 1.20 1.33 1.50 1.50 1.50**
Ratio of net investment
income to average net
assets (%) .............. 1.51** 1.61 1.28 1.23 1.42 2.09**
Portfolio turnover
rate (%) ................ 44** 60 48 53 67 27**
Average commission
rate*** ................. $0.0549 -- -- -- -- --
The ratios of expenses
to average net assets
without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
would have been (%) .... 1.18** 1.20 1.33 1.56 2.19 2.59**
Without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial
Statements net investment
income per share would
have been: .............. $ 0.12 $ 0.23 $ 0.15 $ 0.12 $ 0.07 $ 0.06
- ----------
(*)Commencement of operations.
(**)Computed on an annualized basis.
(***)For fiscal years beginning on or after September 1, 1995, a fund is required to disclose its average commission rate per share
for trades upon which commissions are charged. This rate generally does not reflect mark-ups, mark-downs or spreads on shares
traded on a principal basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
Small Cap Fund
---------------------------------------------------------------------
6 Months Year Ended December 31, May 16* to
Ended --------------------------------------- December 31,
June 30, 1996 1995 1994 1993 1992 1991
-------------- ----- ----- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period .... $15.33 $12.86 $14.13 $12.88 $12.49 $10.00
------ ------ ------ ------ ------ ------
Income from investment
operations --
Net investment income
(loss) ............... 0.04 0.04 (0.04) 0.00 (0.06) (0.01)
Net realized and
unrealized gain (loss)
on investments ....... 2.39 4.06 (1.12) 3.15 1.67 3.03
------ ------ ------ ------ ------ ------
Total from investment
operations ......... 2.43 4.10 (1.16) 3.15 1.61 3.02
------ ------ ------ ------ ------ ------
Less distributions --
Dividends from net
investment income .... 0.00 (0.04) 0.00 0.00 0.00 0.00
Distributions from
net realized capital
gains ................ 0.00 (1.59) (0.11) (1.90) (1.22) (0.53)
------ ------ ------ ------ ------ ------
Total distributions .. 0.00 (1.63) (0.11) (1.90) (1.22) (0.53)
------ ------ ------ ------ ------ ------
Net asset value,
end of period .......... $17.76 $15.33 $12.86 $14.13 $12.88 $12.49
====== ====== ====== ====== ====== ======
Total return (%) ......... 15.9 32.1 (8.2) 24.7 13.1 30.5
Net assets, end of
period (000) ........... $107,530 $90,455 $73,126 $67,553 $39,244 $14,581
Ratio of operating expenses
to average net assets (%) 1.22** 1.25 1.27 1.35 1.50 1.50**
Ratio of net investment
income to average net
assets (%) ............. 0.50** 0.29 (0.30) (0.38) (0.79) (0.19)**
Portfolio turnover
rate (%) ............... 78** 155 87 106 109 56**
Average commission
rate*** ................ $0.0311 -- -- -- -- --
The ratios of expenses
to average net assets
without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
would have been (%) .... 1.22** 1.25 1.27 1.35 1.66 2.43**
Without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
net investment income per
share would have been: .. $ 0.04 $ 0.04 $(0.04) $ 0.00 $(0.07) $ (0.06)
- ----------
(*)Commencement of operations.
(**)Computed on an annualized basis.
(***)For fiscal years beginning on or after September 1, 1995, a fund is required to disclose its average commission rate per share
for trades upon which commissions are charged. This rate generally does not reflect mark-ups, mark-downs or spreads on shares
traded on a principal basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
International Equity Fund
---------------------------------------------------------------------
6 Months Year Ended December 31, May 10* to
Ended --------------------------------------- December 31,
June 30, 1996 1995 1994 1993 1992 1991
-------------- ----- ----- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period .... $11.65 $11.61 $12.90 $ 9.64 $10.27 $10.00
------ ------ ------ ------ ------ ------
Income from investment
operations --
Net investment income .. 0.11 0.14 0.15 0.11 0.10 0.08
Net realized and
unrealized gain (loss)
on investments ....... 0.82 0.87 (0.38) 3.61 (0.62) 0.29
------ ------ ------ ------ ------ ------
Total from investment
operations .......... 0.93 1.01 (0.23) 3.72 (0.52) 0.37
------ ------ ------ ------ ------ ------
Less distributions --
Dividends from net
investment income .... 0.00 (0.14) (0.14) (0.10) (0.10) (0.08)
Distributions from
net realized capital
gains ................ 0.00 (0.83) (0.92) (0.36) (0.01) 0.00
Distributions from
paid-in capital ...... 0.00 0.00 0.00 0.00 0.00 (0.02)
------ ------ ------ ------ ------ ------
Total distributions .. 0.00 (0.97) (1.06) (0.46) (0.11) (0.10)
------ ------ ------ ------ ------ ------
Net asset value,
end of period .......... $12.58 $11.65 $11.61 $12.90 $ 9.64 $10.27
====== ====== ====== ====== ====== ======
Total return (%) ......... 8.0 8.7 (1.8) 38.5 (5.1) 3.7
Net assets, end of
period (000) ........... $85,356 $79,488 $73,189 $56,560 $14,937 $ 6,916
Ratio of operating expenses
to average net assets (%) 1.50** 1.45 1.46 1.50 1.50 1.50**
Ratio of net investment
income to average net
assets (%) ............. 1.78** 1.16 1.30 1.20 1.64 1.55**
Portfolio turnover
rate (%) ............... 162** 133 116 128 101 109**
Average commission
rate*** ................ $0.0007 -- -- -- -- --
The ratios of expenses
to average net assets
without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
would have been (%) .... 1.50** 1.45 1.46 1.72 2.77 3.66**
Without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
net investment income per
share would have been: .. $ 0.11 $ 0.14 $ 0.15 $ 0.09 $ 0.02 $ (0.03)
- ----------
(*)Commencement of operations.
(**)Computed on an annualized basis.
(***)For fiscal years beginning on or after September 1, 1995, a fund is required to disclose its average commission rate per share
for trades upon which commissions are charged. This rate generally does not reflect mark-ups, mark-downs or spreads on shares
traded on a principal basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
<CAPTION>
Worldwide Fund
--------------
May 1* to
June 30, 1996
--------------
<S> <C>
Net asset value, beginning of period ........................................... $10.00
------
Income from investment operations --
Net investment income ........................................................ 0.06
Net realized and unrealized gain (loss) on investments ....................... 0.06
------
Total from investment operations ......................................... 0.12
------
Net asset value, end of period ................................................. $10.12
======
Total return (%) ............................................................... 1.2
Net assets, end of period (000) ................................................ $4,728
Ratio of operating expenses to average net assets (%) .......................... 1.00**
Ratio of net investment income to average net assets (%) ....................... 4.66**
Portfolio turnover rate (%) .................................................... 31**
Average Commission Rate*** ..................................................... $0.0158
The ratios of expenses to average net assets without giving effect to the
voluntary expense limitations described in Note 3 to the Financial
Statements would have been (%) ............................................... 4.46**
Without giving effect to the voluntary expense limitations described in
Note 3 to the Financial Statements net investment income per share
would have been: ............................................................. $ 0.02
- ----------
(*)Commencement of operations.
(**)Computed on an annualized basis.
(***)For fiscal years beginning on or after September 1, 1995, a fund is required to disclose its
average commission rate per share for trades upon which commissions are charged. This rate
generally does not reflect mark-ups, mark-downs or spreads on shares traded on a
principal basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
<CAPTION>
Bond Fund
---------------------------------------------------------------------
6 Months Year Ended December 31, May 16* to
Ended --------------------------------------- December 31,
June 30, 1996 1995 1994 1993 1992 1991
-------------- ----- ----- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ... $12.29 $10.05 $11.37 $10.36 $10.23 $10.00
------ ------ ------ ------ ------ ------
Income from investment
operations --
Net investment income . 0.44 0.82 0.83 0.84 0.76 0.52
Net realized and
unrealized gain (loss)
on investments ...... (0.37) 2.32 (1.29) 1.43 0.67 0.36
------ ------ ------ ------ ------ ------
Total from investment
operations ........ 0.07 3.14 (0.46) 2.27 1.43 0.88
------ ------ ------ ------ ------ ------
Less distributions --
Dividends from net
investment income ... (0.19) (0.82) (0.84) (0.81) (0.76) (0.52)
Distributions in excess
of net investment
income .............. 0.00 0.00 (0.02) 0.00 0.00 0.00
Distributions from net
realized capital
gains ............... 0.00 (0.08) 0.00 (0.45) (0.54) (0.13)
------ ------ ------ ------ ------ ------
Total distributions . (0.19) (0.90) (0.86) (1.26) (1.30) (0.65)
------ ------ ------ ------ ------ ------
Net asset value, end
of period ............. $12.17 $12.29 $10.05 $11.37 $10.36 $10.23
====== ====== ====== ====== ====== ======
Total return (%) ........ 0.6 32.0 (4.1) 22.2 14.3 8.9
Net assets, end of
period (000) .......... 337,258 $255,710 $82,985 $64,222 $18,472 $9,922
Ratio of operating
expenses to average
net assets (%) ........ 0.78** 0.79 0.84 0.94 1.00 1.00**
Ratio of net investment
income to average net
assets (%) ............ 7.98** 8.34 7.92 8.26 7.50 8.97**
Portfolio turnover
rate (%) .............. 58** 35 87 170 101 126**
The ratios of expenses
to average net assets
without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
would have been (%) ... 0.78** 0.79 0.84 0.94 1.55 1.78**
Without giving effect to
the voluntary expense
limitations described in
Note 3 to the Financial
Statements net investment
income per share would
have been: ............. $ 0.44 $ 0.82 $ 0.83 $ 0.84 $ 0.70 $ 0.47
- ----------
(*)Commencement of operations.
(**)Computed on an annualized basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
<CAPTION>
Global Bond Fund
---------------------------------------------------------------------
6 Months Year Ended December 31, May 10* to
Ended --------------------------------------- December 31,
June 30, 1996 1995 1994 1993 1992 1991
-------------- ----- ----- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ............... $11.39 $ 9.82 $11.06 $10.32 $11.38 $10.00
------ ------ ------ ------ ------ ------
Income from investment
operations --
Net investment income ... 0.39 1.04 0.67 0.54 0.70 0.37
Net realized and
unrealized gain (loss)
on investments ........ 0.26 1.31 (1.63) 0.96 (0.60) 1.31
------ ------ ------ ------ ------ ------
Total from investment
operations .......... 0.65 2.35 (0.96) 1.50 0.10 1.68
------ ------ ------ ------ ------ ------
Less distributions --
Dividends from net
investment income ...... 0.00 (0.78) (0.04) (0.49) (0.77) (0.30)
Distributions from net
realized capital
gains .................. 0.00 0.00 0.00 (0.27) (0.39) 0.00
Distributions from capital 0.00 0.00 (0.24) 0.00 0.00 0.00
------ ------ ------ ------ ------ ------
Total distributions .... 0.00 (0.78) (0.28) (0.76) (1.16) (0.30)
------ ------ ------ ------ ------ ------
Net asset value,
end of period ............ $12.04 $11.39 $ 9.82 $11.06 $10.32 $11.38
====== ====== ====== ====== ====== ======
Total return (%) ........... 5.7 23.9 (8.7) 14.6 0.8 16.9
Net assets, end
of period (000) .......... $11,633 $10,304 $25,584 $21,378 $ 9,968 $4,308
Ratio of operating
expenses to average net
assets (%) ............... 1.50** 1.50 1.30 1.50 1.50 1.50**
Ratio of net investment
income to average net
assets (%) ............... 6.66** 8.17 7.02 5.54 6.99 6.81**
Portfolio turnover
rate (%) ................. 147** 148 153 150 72 137**
The ratios of expenses
to average net assets
without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
would have been (%) .... 2.35** 1.69 1.30 1.51 2.58 3.99**
Without giving effect to
the voluntary expense
limitations described in
Note 3 to the Financial
Statements net investment
income per share would
have been: .............. $ 0.34 $ 1.02 $ 0.67 $ 0.54 $ 0.59 $ 0.23
- ----------
(*)Commencement of operations.
(**)Computed on an annualized basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
<CAPTION>
U.S. Government Securities Fund
---------------------------------------------------------------------
6 Months Year Ended December 31, May 21* to
Ended --------------------------------------- December 31,
June 30, 1996 1995 1994 1993 1992 1991
-------------- ----- ----- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ............... $10.64 $ 9.22 $10.53 $10.45 $10.77 $10.00
------ ------ ------ ------ ------ ------
Income from investment
operations --
Net investment income ... 0.33 0.66 0.64 0.64 0.64 0.40
Net realized and
unrealized gain (loss)
on investments ........ (0.83) 1.42 (1.30) 1.00 0.27 1.11
------ ------ ------ ------ ------ ------
Total from investment
operations .......... (0.50) 2.08 (0.66) 1.64 0.91 1.51
------ ------ ------ ------ ------ ------
Less distributions --
Dividends from net
investment income ..... (0.16) (0.66) (0.65) (0.65) (0.59) (0.40)
Distributions from net
realized capital gains 0.00 0.00 0.00 (0.91) (0.64) (0.34)
------ ------ ------ ------ ------ ------
Total distributions ... (0.16) (0.66) (0.65) (1.56) (1.23) (0.74)
------ ------ ------ ------ ------ ------
Net asset value, end of
period .................. $ 9.98 $10.64 $ 9.22 $10.53 $10.45 $10.77
====== ====== ====== ====== ====== ======
Total return (%) .......... (4.7) 23.0 (6.3) 15.7 8.8 15.3
Net assets, end of
period (000) ............ $22,212 $19,499 $17,341 $18,317 $10,899 $6,248
Ratio of operating expenses
to average net assets (%) 1.00** 1.00 1.00 1.00 1.00 1.00**
Ratio of net investment
income to average net
assets (%) .............. 6.38** 6.47 6.60 5.95 6.54 7.01**
Portfolio turnover
rate (%) ................ 105** 169 242 277 344 273**
The ratios of expenses
to average net assets
without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
would have been (%) .... 1.19** 1.22 1.22 1.29 2.01 2.39**
Without giving effect to
the voluntary expense
limitations described in
Note 3 to the Financial
Statements net investment
income per share would
have been: .............. $ 0.32 $ 0.64 $ 0.62 $ 0.61 $ 0.54 $ 0.32
- ----------
(*)Commencement of operations.
(**)Computed on an annualized basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
Municipal Bond Fund
---------------------------------------------------------------------
6 Months Year Ended December 31, May 29* to
Ended --------------------------------------- December 31,
June 30, 1996 1995 1994 1993 1992 1991
-------------- ----- ----- ----- ----- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ............... $11.53 $10.41 $11.54 $10.95 $10.55 $10.00
------ ------ ------ ------ ------ ------
Income from investment
operations --
Net investment income ... 0.26 0.52 0.52 0.51 0.51 0.24
Net realized and
unrealized gain (loss)
on investments ........ (0.43) 1.16 (1.13) 0.74 0.46 0.56
------ ------ ------ ------ ------ ------
Total from investment
operations .......... (0.17) 1.68 (0.61) 1.25 0.97 0.80
------ ------ ------ ------ ------ ------
Less distributions --
Dividends from net
investment income ..... (0.26) (0.52) (0.52) (0.51) (0.51) (0.23)
Distributions from net
realized capital gains 0.00 (0.04) 0.00 (0.15) (0.06) (0.02)
------ ------ ------ ------ ------ ------
Total distributions ... (0.26) (0.56) (0.52) (0.66) (0.57) (0.25)
------ ------ ------ ------ ------ ------
Net asset value, end of
period .................. $11.10 $11.53 $10.41 $11.54 $10.95 $10.55
====== ====== ====== ====== ====== ======
Total return (%) .......... (1.5) 16.5 (5.4) 11.6 9.4 8.1
Net assets, end of
period (000) ............ $7,907 $7,961 $7,270 $5,160 $2,200 $706
Ratio of operating expenses
to average net
assets (%) .............. 1.00** 1.00 1.00 1.00 1.00 1.00**
Ratio of net investment
income to average net
assets (%) .............. 4.62** 4.72 4.79 4.50 4.81 5.03**
Portfolio turnover rate (%) 29** 41 28 36 32 26**
The ratios of expenses
to average net assets
without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
would have been (%) .... 2.53** 2.02 2.37 3.22 7.65 21.58**
Without giving effect to
the voluntary expense
limitations described in
Note 3 to the Financial
Statements net investment
income per share would
have been: .............. $ 0.17 $ 0.41 $ 0.37 $ 0.26 $ (0.19) $ (0.74)
- ----------
(*)Commencement of operations.
(**)Computed on an annualized basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- (unaudited)
<TABLE>
Short-Term Bond Fund
---------------------------------------------------------------------
6 Months Year Ended December 31, August 3* to
Ended ------------------------------- December 31,
June 30, 1996 1995 1994 1993 1992
-------------- ----- ----- ----- ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of period .............. $ 9.81 $ 9.46 $ 9.95 $ 9.87 $10.00
------ ------ ------ ------ ------
Income from investment
operations --
Net investment income .. 0.27 0.63 0.66 0.59 0.22
Net realized and
unrealized gain (loss)
on investments ....... (0.18) 0.35 (0.49) 0.08 (0.13)
------ ------ ------ ------ ------
Total from investment
operations ....... 0.09 0.98 0.17 0.67 0.09
------ ------ ------ ------ ------
Less distributions --
Dividends from net
investment income ..... (0.27) (0.63) (0.66) (0.59) (0.22)
Distributions from net
realized capital gains 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------
Total distributions . (0.27) (0.63) (0.66) (0.59) (0.22)
------ ------ ------ ------ ------
Net asset value, end of
period .................. $ 9.63 $ 9.81 $ 9.46 $ 9.95 $ 9.87
====== ====== ====== ====== ======
Total return (%) .......... 0.9 10.6 1.8 7.0 0.9
Net assets, end of
period (000) ............ $19,063 $26,039 $19,440 $15,226 $5,121
Ratio of operating expenses
to average net assets (%) 1.00** 1.00 1.00 1.00 1.00**
Ratio of net investment
income to average net
assets (%) .............. 5.59** 6.46 6.88 5.97 5.49**
Portfolio turnover rate (%) 95** 214 34 81 31**
The ratios of expenses
to average net assets
without giving effect
to the voluntary
expense limitations
described in Note 3 to
the Financial Statements
would have been (%) ..... 1.12** 1.03 1.33 1.55 3.74**
Without giving effect to
the voluntary expense
limitations described in
Note 3 to the Financial
Statements net investment
income per share would
have been: .............. $ 0.26 $ 0.62 $ 0.63 $ 0.54 $ 0.11
- ----------
(*)Commencement of operations.
(**)Computed on an annualized basis.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES FUNDS
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS -- June 30, 1996 (unaudited)
1. The Loomis Sayles Funds are a group of ten no-load mutual funds (the
"Funds").
Each Fund is a series of Loomis Sayles Funds (the "Trust"). The Trust is a
diversified open-end management investment company organized as a
Massachusetts business trust. The Trust is authorized to issue an
unlimited number of full and fractional shares of beneficial interest in
multiple series.
Each Fund is separately managed and has its own investment objective and
policies. Loomis, Sayles & Company, L.P. ("Loomis Sayles") is the
investment adviser of each Fund.
The Trust consists of the following funds:
<TABLE>
<CAPTION>
FUND FUND
---- ----
<S> <C>
Loomis Sayles Growth Fund Loomis Sayles Bond Fund
Loomis Sayles Growth & Income Fund Loomis Sayles Global Bond Fund
Loomis Sayles Small Cap Fund Loomis Sayles U.S. Government Securities Fund
Loomis Sayles International Equity Fund Loomis Sayles Municipal Bond Fund
Loomis Sayles Worldwide Fund Loomis Sayles Short-Term Bond Fund
</TABLE>
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles
for investment companies.
A. SECURITY VALUATION -- Equity securities listed on an established
securities exchange or on the NASDAQ National Market System are normally
valued at their last sale price on the exchange where primarily traded or,
if there is no reported sale during the day, and in the case of
over-the-counter securities not so listed, at the last bid price. Long-
term debt securities are valued by a pricing service which determines
valuations of normal institutional-size trading units of long-term debt
securities. Such valuations are determined using methods based on market
transactions for comparable securities and on various relationships
between securities which are generally recognized by institutional
traders. Other securities for which current market quotations are not
readily available (including restricted securities, if any) and all other
assets are carried at fair value as determined in good faith by the Board
of Trustees, although the actual calculations may be made by persons
acting pursuant to the direction of the Board of Trustees.
B. REPURCHASE AGREEMENTS -- The Funds engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Funds
take possession of an underlying debt obligation subject to an obligation
of the seller to repurchase, and the Funds to resell the obligation at an
agreed-upon price and time. This arrangement results in a fixed rate of
return that is not subject to market fluctuations during the Funds'
holding period. The Funds, through their Custodian, receive the delivery
of the underlying securities collateralizing repurchase agreements. It is
the Funds' policy that the market value of the collateral be at least
equal to 100% of the repurchase price. Loomis Sayles is responsible for
determining that the value of the collateral is at all times at least
equal to the repurchase price. In connection with transactions in
repurchase agreements, if the seller defaults and the value of the
collateral declines or if the seller enters an insolvency proceeding,
realization of the collateral by the Funds may be delayed or limited.
C. FOREIGN CURRENCY TRANSLATION -- The books and records of the Loomis Sayles
International Equity, Worldwide, Bond and Global Bond Funds are maintained
in U.S. dollars. The value of securities, currencies and other assets and
liabilities denominated in currencies other than U.S. dollars is
translated into U.S. dollars based upon foreign exchange rates prevailing
at the end of the period. Purchases and sales of investment securities,
income and expenses are translated on the respective dates of such
transactions.
The results of operations resulting from changes in foreign exchange rates
on investments are not isolated from fluctuations arising from changes in
market prices of securities held. All such fluctuations are included with
net realized and unrealized gain or loss from investments.
Net realized and unrealized gains and losses on foreign currency
transactions represent foreign exchange gains and losses from the sale of
short-term securities and holdings of foreign currencies, foreign currency
gains and losses between trade dates and settlement dates on investment
securities transactions, and the difference between the amounts of daily
interest accruals on the books of the Funds and the amounts actually
received resulting from changes in exchange rates on the payable date.
FORWARD FOREIGN CURRENCY CONTRACTS -- Loomis Sayles International Equity,
Worldwide and Global Bond Funds, upon the purchase or sale of a security
denominated in a foreign currency, may enter into forward foreign currency
contracts for the purchase or sale, for a fixed amount of U.S. dollars, of
the amount of foreign currency involved in the underlying security
transaction. In such cases, the Funds have not realized currency gains or
losses between the trade and settlement dates on these security
transactions.
In addition, a Fund may enter into a forward foreign currency contract to
sell, for a fixed amount, a foreign currency in which securities held are
denominated to hedge against anticipated declines in the value of the
currency it believes may adversely affect the value of the Fund's
portfolio securities.
Forward foreign currency contracts are valued at the forward rate and are
marked-to-market daily. The change in market value is recorded as
unrealized gain or loss. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the value at the time it was
closed.
The use of forward foreign exchange contracts does not eliminate
fluctuations in the underlying price of a Fund's investment securities,
but does establish a rate of exchange that can be achieved in the future.
Although forward foreign currency exchange contracts limit the risk of
loss due to a decline in the value of hedged currency, they also limit any
potential gain that might result should the value of the currency
increase. In addition, the Funds could be exposed to risks if the
counterparties to the contracts are unable to meet the terms of their
contracts.
D. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Security
transactions are accounted for on the trade date (the date the buy or sell
is executed). Dividend income is recorded on the ex-dividend date and
interest income is recorded on the accrual basis. Interest income is
increased by the accretion of discount and is reduced by the amortization
of premium. In determining net gain or loss on securities sold, the cost
of securities has been determined on the identified cost basis.
E. WHEN-ISSUED SECURITIES -- Delivery and payment for securities purchased on
a when-issued or delayed delivery basis can take place one month or more
after the date of the transactions. The securities so purchased are
subject to market fluctuation during this period. Each Fund instructs the
custodian to segregate assets in a separate account with a current value
at least equal to the amount of its when-issued purchase commitments. At
June 30, 1996 the Funds held no such commitments.
F. FEDERAL INCOME TAXES -- Each Fund is a separate entity for federal income
tax purposes. Each Fund intends to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies, and to
distribute to its shareholders all of its net investment income and any
net realized capital gains. Accordingly, no provision for federal income
tax has been made.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The equity funds, Worldwide
and the Global Bond Funds pay their net investment income to shareholders
annually. The Bond and U.S. Government Securities Funds pay their net
investment income quarterly. Distributions from net realized capital gains
are declared and paid on an annual basis by all of the Funds. The
Municipal Bond Fund and Short-Term Bond Fund dividends are declared daily
to shareholders of record at the time and are paid monthly. Income
distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarly due to differing
treatments of income and gains on various investment securities held by
the Funds, timing differences and differing characterization of
distributions made by the Funds.
H. ORGANIZATION EXPENSE -- Costs incurred in 1991 in connection with the
Funds' organization and registration, amounting to approximately $149,700
in the aggregate, were allocated equally among the eight then existing
Funds, were paid by such Funds and were amortized equally by each of such
Funds over 60 months.
In 1992, costs approximating $7,800 were incurred in connection with the
organization and registration of the Short-Term Bond Fund. These costs
were paid by the Fund and are being amortized by the Fund over 60 months.
In 1996, costs approximating $8,800 were incurred in connection with the
organization and registration of the Worldwide Fund. These costs were paid
by the Fund and are being amortized by the Fund as follows: $7,900 over 12
months and $900 over 60 months.
2. PURCHASE AND SALE OF SECURITIES (excluding short-term investments) for
each Fund for the six months ended June 30, 1996, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------------------------------- ---------------------------------
FUND U.S. GOVERNMENT OTHER U.S. GOVERNMENT OTHER
---- --------------- ----- --------------- -----
<S> <C> <C> <C> <C>
Growth Fund ............................. $ 27,018,212 $ 28,659,569
Growth & Income Fund .................... 8,191,001 8,449,199
Small Cap Fund .......................... 39,641,890 35,008,896
International Equity Fund ............... 65,088,236 65,585,917
Worldwide Fund* ......................... 4,057,532 199,411
Bond Fund ............................... $44,533,070 122,561,037 $17,899,805 67,577,731
Global Bond Fund ........................ 788,719 8,334,583 701,453 7,241,546
U.S. Government Securities Fund ......... 13,750,933 2,682,297 4,471,289 7,293,086
Municipal Bond Fund ..................... 1,171,784 1,072,571
Short-Term Bond Fund .................... 2,881,936 7,335,995 14,168,380 3,254,514
*Amounts relate to period from May 1, 1996 (Commencement of Operations) through June 30, 1996.
</TABLE>
3. A. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES -- During the six
months ended June 30, 1996, the Funds incurred management fees payable to
Loomis Sayles. Certain officers and employees of Loomis Sayles are also
officers or trustees of the Trust. Loomis Sayles is a majority owned
subsidiary of New England Investment Companies, L.P., which is a
subsidiary of New England Mutual Life Insurance Company ("The New
England"). The New England and Metropolitan Life Insurance Company ("Met
Life") have entered into an agreement to merge, with Met Life to be the
survivor of the merger. The merger is subject to a number of conditions.
Separate management agreements for each Fund in effect during the six
months ended June 30, 1996 provided for fees as set forth below:
<PAGE>
<TABLE>
<CAPTION>
FEES EARNED
DURING THE
SIX MONTHS ENDED
FUND JUNE 30, 1996(A) ANNUAL PERCENTAGE RATE
---- ---------------- ----------------------
<S> <C> <C>
Growth Fund ................................ $175,385 0.75% of the Fund's average daily net assets
Growth & Income Fund ....................... 145,578 0.75% of the Fund's average daily net assets
Small Cap Fund ............................. 503,934 1.00% of the Fund's average daily net assets
International Equity Fund .................. 416,325 1.00% of the Fund's average daily net assets
Worldwide Fund(b) .......................... 4,860 0.75% of the Fund's average daily net assets
Bond Fund .................................. 899,210 0.60% of the Fund's average daily net assets
Global Bond Fund ........................... 43,302 0.75% of the Fund's average daily net assets
U.S. Government Securities Fund ............ 69,447 0.60% of the Fund's average daily net assets
Municipal Bond Fund ........................ 23,345 0.60% of the Fund's average daily net assets
Short-Term Bond Fund ....................... 55,095 0.50% of the Fund's average daily net assets
(a) Prior to the voluntary expense limitation.
(b) Amounts relate to period from May 1, 1996 (Commencement of Operations) through June 30, 1996.
</TABLE>
B. Loomis Sayles has voluntarily agreed, for an indefinite period, to reduce
its advisory fees and/or bear other Fund expenses, to the extent necessary
to limit Fund total operating expenses to 1.00% of average annual net
assets for the Worldwide, Bond, Municipal Bond, U.S. Government Securities
and Short-Term Bond Funds and to 1.50% of average annual net assets for
each other Fund. Loomis Sayles may change or terminate these voluntary
arrangements at any time, but the Fund prospectus would be supplemented at
that time to describe the change. Under these arrangements, Loomis Sayles
waived management fees of $106,165 for the six months ended June 30, 1996
and bore expenses and fees, other than the compensation of trustees
described in Note 3.D, totalling $59,756.
C. OTHER EXPENSES -- New England Funds, L.P. (a subsidiary of New England
Investment Companies) performs certain administrative, accounting and
other services for the Trust. The expenses of those services, which are
paid to New England Funds, L.P. by the Trust, include the following: (i)
expenses for personnel performing bookkeeping, accounting, internal
auditing, financial reporting functions and clerical functions relating to
the Fund, and (ii) expenses for services required in connection with the
preparation of registration statements and prospectuses, shareholder
reports and reports and questionnaires for SEC compliance. For the six
months ended June 30, 1996 these expenses amounted to $48,295 for the ten
Loomis Sayles Funds presented herein and are shown separately in the
financial statements as Accounting and Administrative fees.
D. TRUSTEES FEES AND EXPENSES -- The Trust does not pay any compensation
directly to its officers or trustees who are directors, officers or
employees of Loomis Sayles, The New England or their affiliates. Each
other trustee is compensated by the Trust on behalf of each Fund at the
rate of $1,250 per Fund, per year plus travel expenses for each meeting
attended.
E. SHAREHOLDERS -- At June 30, 1996, Loomis Sayles held 12,904 shares of
beneficial interest in the Municipal Bond Fund. In addition, Loomis Sayles
Funded Pension Plan and Loomis, Sayles & Company, Employees Profit Sharing
Retirement Plan held shares of beneficial interest in the Funds as
follows:
PROFIT
PENSION SHARING
PLAN PLAN
------- --------
Growth Fund ................................ 331,584 701,714
Growth & Income Fund ....................... 442,634 499,112
Small Cap Fund ............................. 206,773 752,758
International Equity Fund .................. 669,592 425,153
Worldwide Fund ............................. 400,000 67,107
Bond Fund .................................. 429,325 970,136
Global Bond Fund ........................... 465,953 182,527
U.S. Government Securities Fund ............ 481,750 168,164
Short-Term Bond Fund ....................... 142,709 150,998
4. CREDIT RISK -- The Worldwide Fund and Bond Fund may invest less than 35%
of net assets in securities offering high current income, which generally
will be in the lower rating categories of recognized rating agencies.
These securities are regarded as predominantly speculative with respect to
capacity to pay interest and repay principal in accordance with the terms
of the obligations and will generally involve more credit risk than
securities in the higher rating categories. In addition, the trading
market for high yield securities may be relatively less liquid than the
market for higher-rated securities.
5. FOREIGN SECURITIES -- The Loomis Sayles International Equity, Worldwide,
Bond and Global Bond Funds purchase securities of foreign issuers.
Investing in securities of foreign companies and foreign governments
involves special risks and consideration, not typically associated with
investing in U.S. companies and securities of the U.S. government. The
risks include revaluation of currencies and future adverse economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more
volatile than those of securities of comparable U.S. companies and the
U.S. government.
<PAGE>
- ------------------------------------------------------------------------------
BOARD OF TRUSTEES
EARL W. FOELL
DANIEL J. FUSS
RICHARD S. HOLWAY
TERRY R. LAUTENBACH
MICHAEL T. MURRAY
OFFICERS
PRESIDENT
DANIEL J. FUSS
EXECUTIVE VICE PRESIDENT
ROBERT J. BLANDING
VICE PRESIDENTS
JEROME A. CASTELLINI
MARY C. CHAMPAGNE
E. JOHN DEBEER
PAUL H. DREXLER
WILLIAM H. EIGEN, JR.
QUENTIN P. FAULKNER
MARTHA F. HODGMAN
JOHN HYLL
JEFFREY L. MEADE
KENT P. NEWMARK
JEFFREY C. PETHERICK
JEFFREY W. WARDLOW
JOHN F. YEAGER III
TREASURER
MARK W. HOLLAND
ASSISTANT TREASURERS
LOUIS T. BALLERENE
PETER H. DUFFY
NICHOLAS H. PALMERINO
SECRETARY
SHEILA M. BARRY
ASSISTANT SECRETARY
LAURIE M. GALLAGHER
<PAGE>
INVESTMENT ADVISER
Loomis, Sayles & Company, L.P.
One Financial Center
Boston, Massachusetts 02111
TRANSFER AND
DIVIDEND PAYING AGENT
AND CUSTODIAN OF ASSETS
State Street Bank and Trust Company
Boston, Massachusetts 02102
SHAREHOLDER SERVICING AGENT
FOR STATE STREET BANK
AND TRUST COMPANY
Boston Financial Data Services, Inc.
P.O. Box 8314
Boston, Massachusetts 02266
For information about:
o Establishing an account
o Account procedures and status
o Exchanges
o Shareholder services
CALL 800-626-9390
For all other information about the Funds:
CALL 800-633-3330
This report has been prepared for the shareholders of the Funds and is not
authorized for distribution to prospective investors in the Funds unless it is
accompanied or preceded by an effective prospectus.
-----------------------
LOOMIS SAYLES FUNDS(TM)
-----------------------
The Power of A Passion.(TM)
A FAMILY OF NO-LOAD FUNDS
SEMI-ANNUAL
REPORT
JUNE 30, 1996
ONE FINANCIAL CENTER
BOSTON, MASSACHUSETTS 02111
(617) 482-2450
