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LOOMIS SAYLES FUNDS
SUPPLEMENT DATED JULY 22, 1996
TO PROSPECTUS DATED MAY 1, 1996 (AS REVISED JUNE 18, 1996)
The fifth sentence of the fourth paragraph of the section of the
prospectus of the Loomis Sayles Funds (the "Trust") captioned "The Funds'
Investment Adviser" is revised to state:
Effective July 15, 1996, Paul H. Drexler, Vice President of the Trust
and Loomis, Sayles & Company, L.P. ("Loomis Sayles"), is portfolio manager
of and has day-to-day management responsibilities for the Loomis Sayles
International Equity Fund. Prior to joining Loomis Sayles in 1993, Mr.
Drexler was an economist and portfolio manager at Brown Brothers Harriman
& Co.
The following paragraph is added after the fourth paragraph of the section
of the Trust's prospectus captioned "How to Purchase Shares":
All purchases made by check should be in U.S. dollars and made payable
to the Loomis Sayles Funds, or in the case of a retirement account, the
custodian or trustee. Third party checks will not be accepted. When
purchases are made by check or periodic account investment, redemption
will not be allowed until the investment being redeemed has been in the
account for 15 calendar days.
The first sentence of the ninth paragraph of that section is revised to
state:
The price you pay will be the per share net asset value next
calculated after a proper investment order is received by the Trust's
transfer or other agent or subagent.
The following sentence is added to the first paragraph of the section of
the Trust's prospectus captioned "Shareholder Services":
Telephone redemption and exchange privileges will be established
automatically when you open your account unless you elect on your
application to decline the privileges. Other privileges must be
specifically elected. A signature guarantee will be required to establish
a privilege after you open your account.
The second sentence of the subsection of that section captioned "Free
Exchange Privilege" is revised to state:
Exchanges may be made by written instructions or by telephone, unless
you elected on your application to decline telephone exchange privileges.
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The last sentence of the first paragraph of the section of the Trust's
prospectus captioned "How to Redeem Shares" is revised to state:
Proceeds resulting from a telephone redemption request can be wired to
your bank account or sent by check in the name of the registered owners to
your record address.
The first sentence of the third paragraph of that section is revised to
state:
If (1) you are redeeming shares worth more than $50,000, (2) you are
requesting that the proceeds check be made out to someone other than the
registered owners or be sent to an address other than your record address,
(3) your account registration has changed within the last 30 days or (4)
you are instructing us to wire the proceeds to a bank account not
designated on your application, you must have your signature guaranteed by
an eligible guarantor.
The first sentence of the sixth paragraph of that section is deleted.
