<PAGE>
LOOMIS SAYLES FUNDS
Supplement dated January 8, 1997 to the Prospectuses dated December 30, 1996
of the Loomis Sayles Funds relating to the Loomis Sayles Bond Funds.
The following table relating to the Loomis Sayles Bond Fund replaces the
table on page 5 of each of the Prospectuses:
<TABLE>
<CAPTION>
BOND FUND
----------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED MAY 16*
JUNE 30, DEC. 31, TO
1996 ----------------------------------- DEC. 31,
(UNAUDITED) 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 pe-
riod (000)............. $337,258 $255,710 $82,985 $64,222 $18,472 $9,922
Rate 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**
Without giving effect to
voluntary expense
limitations:
The ratios of operating
expenses to average net
assets would have been
(%).................... 0.78** 0.79 0.84 0.94 1.55 1.78**
Net investment income
per share would have
been................... $ 0.44 $ 0.82 $ 0.83 $ 0.84 $ 0.70 $ 0.47
</TABLE>
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* Commencement of operations.
** Computed on an annualized basis.
