<PAGE>
EQUITY FUNDS
LOOMIS SAYLES AGGRESSIVE GROWTH FUND
LOOMIS SAYLES CORE VALUE FUND
LOOMIS SAYLES EMERGING MARKETS FUND
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND
LOOMIS SAYLES GROWTH FUND
LOOMIS SAYLES INTERNATIONAL EQUITY FUND
LOOMIS SAYLES MID-CAP VALUE FUND
LOOMIS SAYLES RESEARCH FUND
LOOMIS SAYLES SMALL CAP GROWTH FUND
LOOMIS SAYLES SMALL CAP VALUE FUND
LOOMIS SAYLES WORLDWIDE FUND
[LOGO]
ANNUAL REPORT
SEPTEMBER 30, 2000
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Corporate Overview 1
Letter from the President 2
Economic and Market Overview 4
Institutional Class Total Return vs. Lipper Category Average and Lipper
Category Index 8
Fund and Manager Reviews 10
Portfolio of Investments 32
Statements of Assets and Liabilities 82
Statements of Operations 84
Statements of Changes in Net Assets 86
Financial Highlights 98
Notes to Financial Statements 118
2000 U.S. Tax and Distribution Information 132
Shareholder Meeting Results 133
Report of Independent Accountants 134
</TABLE>
<PAGE>
CORPORATE OVERVIEW
LOOMIS SAYLES FUNDS
Loomis Sayles Funds is a Boston-based family of predominantly no-load mutual
funds advised by Loomis, Sayles & Company, L.P. At Loomis Sayles Funds, we
follow a simple strategy--we pay close attention to what we hear from our
clients and the marketplace, then work to deliver high-quality products and
services that exceed expectations.
Our "listening harder" creed lets us design products and services that truly
answer our clients' needs. We offer a broad range of predominantly no-load funds
to complement your investment objectives and strategies. We believe we run one
of the most responsive support organizations in the business, providing timely
information and insightful solutions.
Beyond that, we're structured to take advantage of our institutional heritage.
The research department at Loomis, Sayles & Company, L.P. provides our portfolio
managers with the fundamental research they need to make sound investment
decisions. Our portfolio managers not only manage mutual funds, they manage
large institutional accounts that demand and appreciate the style consistency
that follows from our disciplined investment approach.
FOR INFORMATION ABOUT:
- Establishing an account
- Account procedures and status
- Exchanges
- Shareholder services
PHONE 800-626-9390
FOR ALL OTHER INFORMATION ABOUT THE FUNDS:
PHONE 800-633-3330
To request any of the following, press or say the number
1--Automated Account Balances, Last Transaction, and Distribution Information
2--Speak to a Customer Service Representative regarding an Existing Account
3--Net Asset Values and Yields
4--Speak to a Marketing Representative
5--Advisory and Broker/Dealer Services
6--Institutional and High Net Worth Operations, Trading and Client Services
AS ALWAYS, WE ARE INTERESTED IN YOUR COMMENTS ABOUT THE JOB WE ARE DOING AND
IN ANSWERING ANY QUESTIONS YOU MAY HAVE. FOR MORE COMPLETE INFORMATION ABOUT
ANY OF THE LOOMIS SAYLES FUNDS, INCLUDING CHARGES AND EXPENSES, PLEASE CALL
LOOMIS SAYLES DISTRIBUTORS, L.P. FOR A PROSPECTUS AT 800-633-3330 MONDAY
THROUGH FRIDAY, 8:45 A.M. TO 4:45 P.M. EST. READ IT CAREFULLY BEFORE YOU
INVEST OR SEND MONEY.
LOOMIS SAYLES EQUITY FUNDS 1
<PAGE>
LETTER FROM THE PRESIDENT
DEAR SHAREHOLDERS:
[PHOTO OF DANIEL J. FUSS]
DANIEL J. FUSS
PRESIDENT AND
PORTFOLIO MANAGER
The last twelve months ended September 30, 2000 gave investors a volatile stock
market and an improving bond market. Valuation concerns triggered a sharp
sell-off in the large-cap growth sector of the stock market, while a slowing
economy helped bolster the bond market.
The solid twelve-month return for the stock market (13.28 percent as measured by
the S&P 500 INDEX) somewhat masks the severe volatility and sector rotations
that started to occur during the year. Growth stocks, led by the powerful
technology sector, remained strong through the first half of the year. But, in
mid-March sentiment shifted quickly, as valuation and earnings concerns
triggered a sharp downturn among technology stocks and other growth sectors.
Eager to find good valuations and real earnings, investors rediscovered value
stocks.
In general, the Loomis Sayles Equity Funds offered attractive performance during
the year, as the two distinct market climates benefited both growth- and
value-oriented funds.
For most of the year, the bond market was faced with the anomaly of an
inverted Treasury yield curve. Short-term rates were on the rise, due to the
Federal Reserve Board's tightening policy, and long-term rates were on the
decline, due to the Treasury Department's buyback of long-term debt. The
situation started to stabilize during the summer, as signs of a slowing
economy put the Federal Reserve Board into a holding pattern.
Among the spread sectors, higher-quality, long-term bonds were the leading
performers for the year. Credit spreads remained volatile during the year,
and we took advantage of widening spreads to purchase attractive securities.
Overall, we continued to benefit from our research-driven insights into
security and sector selections, and the Loomis Sayles Fixed Income Funds
offered attractive performance for the period.
<PAGE>
Looking ahead, the key factor influencing the financial markets is still with
us: peace. There are some situations to worry about as we look around the
world, but nothing requiring a large build-up of the military either here or
elsewhere. Another potential problem--stock market leverage--actually appears
to have lightened. The impact of rising energy prices and their influence on
economies and markets is still playing out. In fact, the situation may help
the bond market by causing economic slowing that more than offsets the
inflationary impact of higher energy prices. Of course, the central banks
could respond by increasing the money supply, and inflation would re-emerge.
So far, this seems unlikely, but it is worth watching.
Sincerely,
/s/ Daniel J. Fuss
Daniel J. Fuss
President
Loomis Sayles Funds
LOOMIS SAYLES EQUITY FUNDS 3
<PAGE>
ECONOMIC AND MARKET OVERVIEW
ANNUAL REPORT FOR THE PERIOD ENDED SEPTEMBER 30, 2000
STOCK MARKET REVIEW
Concealed behind the stock market's solid total return of 13.3 percent for the
fiscal year (as measured by the S&P 500 INDEX) is a period of strong market
volatility and distinct sector rotations. All of the market's positive
performance came in the first six months of the period, when the S&P 500 INDEX
returned 17.6 percent. For the final six months of the year, the Index lost 3.8
percent.
The strongest common bond among the top performers for the final six months
of the year was that they had lousy performance in the first six months of
the year. In fact, nine of the S&P 500 INDEX's 10 best performers for the six
months ended September 30, 2000, were down at least 10 percent for the
six-month period ended March 31, 2000.
After a lengthy, unprecedented reign as the favored style, large-cap growth
stocks relinquished that title, as value stocks and small- and
mid-capitalization growth stocks moved into the limelight. For the year, the
RUSSELL MIDCAP INDEX posted a total return of 31.6 percent and the RUSSELL
2000 INDEX offered a total return of 23.4 percent. The trend toward smaller
companies started in the fourth quarter of 1999 and continued throughout the
year. The shift toward the value style began in March 2000, due primarily to
a strong correction among the fastest-growing technology stocks. Although the
Russell growth indexes led the value indexes for the twelve-month period,
most under-performed their value counterparts for the six-month period ended
September 30, 2000.
Perhaps the biggest sector story for the year was in technology. After
soaring through the first five months of the fiscal year and driving much of
the overall market's strong performance, the technology bubble finally burst
on March 10, 2000. Hardest hit were the dot-com stocks with bad earnings
reports and questionable earnings forecasts. The downdraft quickly spread to
other technology sectors, including PC manufacturers. Data indicated that the
home PC market was becoming saturated and that business use was shifting
toward workstations. That news hurt several big players, including Dell
Computer, which was down 43 percent for the six months ended September 30,
2000; Apple Computer, down 62 percent; Intel, down 37 percent, Texas
Instruments, down 41 percent; Gateway, down 12 percent; and Hewlett-Packard,
down 8 percent. In addition, the government's antitrust suit against
Microsoft pushed down the technology sector as it caused the company's stock
to drop 43 percent for the six-month period.
Nevertheless, there were several technology stocks that offered "real"
earnings and, consequently, excellent returns for the one-year period. For
example, 3Com was up 139 percent, and EMC was up 178 percent.
Financial stocks across the board enjoyed a strong year, as stabilizing
interest rates and a slowing economy contributed to solid returns. The
healthcare sector was another good performer. Specifically, HMOs and
long-term care providers benefited from the federal budget surplus and its
impact on improved Medicare funding.
<PAGE>
While the slowing economy was good news for financial stocks, it was bad news
for the retail sector, contributing to earnings disappointments and poor
performance.
In the international arena, performance was disappointing. After a stellar
1999, international stocks retreated beginning in the first quarter of 2000.
The MORGAN STANLEY CAPITAL INTERNATIONAL EUROPE, AUSTRALIA AND FAR EAST
(EAFE) INDEX posted a total return of 3.2 percent for the twelve-month period
ended September 30, 2000.
The declining value of the Euro was a large contributor to the poor
performance. From a value of approximately $1 in December 1999, the Euro fell
to 85 cents in September 2000. The rising cost of oil was another factor
working against European nations, which are completely dependent on foreign
sources of oil. Even the United Kingdom, the only European nation that does
any oil drilling, is a net importer of oil. On the other hand, rising oil
prices were a positive event for the emerging-market, oil-exporting nations
of Mexico and Venezuela.
In Japan, the economic recovery hit a roadblock, which affected the rest of
Asia as well. In one unusual and ineffective move, the Japanese government
initiated a bailout of a major department store. This proved to be an
unpopular effort with the Japanese people, who were not comfortable with
their government salvaging a private-sector enterprise. The expectation is
that the government will continue to guarantee bank deposits but not the
financial solvency of private enterprise.
BOND MARKET REVIEW
After a dismal 1999, the bond market started to rebound in the first quarter
of 2000. The bond market was bolstered throughout the first nine months of
2000 by the U.S. Treasury Department's announcement that it was buying back
long-term debt. This created huge demand for long-term Treasuries and led to
an inverted yield curve, with rates peaking at about the 10-year range. As
the fiscal year winded down, the inversion started to subside somewhat, and
securities in the intermediate-maturity range were the primary beneficiaries.
High-quality, longer-term bonds were the favored fixed-income securities
during the year. High-yield bonds excelled in the fourth quarter of 1999,
when investors showed a strong willingness to take on credit risk. But, that
sentiment quickly changed in the face of higher interest rates. For
lower-rated credits, investors worried that higher interest rates would make
it more costly to raise capital.
For the entire twelve-month period, government bonds outperformed all other
fixed-income securities with a return of 7.2 percent, as measured by the
LEHMAN BROTHERS GOVERNMENT BOND INDEX. Mortgage-backed securities were up 7.4
percent, according to the LEHMAN BROTHERS FIXED RATE MORTGAGE-BACKED INDEX,
and investment-grade corporate securities, as measured by LEHMAN BROTHERS
GOVERNMENT/CREDIT BOND INDEX, were up 6.7 percent. High yield bonds, as
measured by the LEHMAN BROTHERS HIGH YIELD BOND INDEX, finished the
twelve-month period up 1.0 percent.
LOOMIS SAYLES EQUITY FUNDS 5
<PAGE>
U.S. AND GLOBAL ECONOMIC REVIEW
The Federal Reserve Board maintained its proactive stance against inflation
with a series of interest rate hikes through May 2000, when it imposed a 0.5
percentage-point increase. That proved to be the final rate hike for the
twelve-month period, as the Federal Reserve Board's tightening policy finally
started to have a slowing effect on the economy. Growth remained positive and
moved into the more sustainable range of 2.0-2.5 percent.
After the May rate hike, short-term interest rates remained stable for the
rest of the year, and some Federal Reserve Board watchers anticipated that
the next move would be a cut in rates. The last time the Federal Reserve
Board cut interest rates was more than two years ago. A typical interest rate
cycle is 17 months, so there remains modest optimism for lower interest rates
going forward.
In Europe, price stability remains the primary goal for the European Central
Bank (ECB). As such, it is expected that the ECB will let the Euro float
freely, even if it means that it continues to fall against the U.S. dollar.
The outlook for Germany remains especially positive, as new tax reforms
should promote good growth. France, Sweden, Finland and The Netherlands also
remain positioned for good growth, because their economies are reflective of
the "new economy."
Higher oil prices remain a catalyst for potentially higher inflation figures
for the United States and the rest of the world. In particular, Europe
remains vulnerable to higher oil prices, as most European nations import all
of their oil. In fact, the United Kingdom is the only nation that has any
domestic drilling effort. Emerging markets, such as Mexico and Venezuela,
stand to benefit from the trend toward higher oil prices due to their
significant oil-exportation industries.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
LOOMIS SAYLES EQUITY FUNDS 7
<PAGE>
INSTITUTIONAL CLASS
TOTAL RETURN(1) VS. LIPPER CATEGORY AVERAGE AND LIPPER CATEGORY INDEX(2) FOR
THE PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
MODIFIED ACTUAL
1 YEAR 3 YEARS 5 YEARS INCEPTION(3) INCEPTION(4)
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LOOMIS SAYLES AGGRESSIVE GROWTH FUND 147.80% 63.59% NA 57.60% 57.60%
Lipper Multi-Cap Growth Funds Average 53.43% 26.71% NA 27.83% NA
Rank 3/414 1/300 NA 1/273 NA
Percentile 1 1 NA 1 NA
Lipper Multi-Cap Growth Funds Index 44.12% 24.26% NA 26.74% NA
LOOMIS SAYLES CORE VALUE FUND 3.60% 2.70% 12.26% 12.39% 12.97%
Lipper Multi-Cap Value Funds Average 11.94% 6.45% 13.80% 13.44% NA
Rank 376/475 255/336 145/209 68/96 NA
Percentile 79 76 70 71 NA
Lipper Multi-Cap Value Funds Index 10.61% 5.80% 13.60% 13.49% NA
LOOMIS SAYLES EMERGING MARKETS FUND NA NA NA 11.81% 48.60%
Lipper Emerging Markets Funds Average NA NA NA (5.48) NA
Rank NA NA NA NA NA
Percentile NA NA NA NA NA
Lipper Emerging Markets Funds Index NA NA NA (6.84) NA
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND NA NA NA 27.00% 27.00%
Lipper Science and Technology Funds Average NA NA NA 5.35% NA
Rank NA NA NA NA NA
Percentile NA NA NA NA NA
Lipper Science and Technology Funds Index NA NA NA 7.76% NA
LOOMIS SAYLES GROWTH FUND 45.64% 19.76% 21.37% 17.17% 17.89%
Lipper Large-Cap Growth Funds Average 30.33% 24.07% 23.17% 18.25% NA
Rank 65/496 241/320 144/201 49/76 NA
Percentile 14 76 72 64 NA
Lipper Large-Cap Growth Funds Index 23.73% 21.95% 23.41% 18.67% NA
</TABLE>
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
(1) TOTAL RETURN FOR PERIODS GREATER THAN ONE YEAR REPRESENTS AVERAGE ANNUAL
TOTAL RETURN. TOTAL RETURNS SHOWN REFLECT, IF ANY, THE EFFECT OF FEE
WAIVERS AND/OR EXPENSE REIMBURSEMENTS. WITHOUT SUCH WAIVERS AND/OR EXPENSE
REIMBURSEMENTS, PERFORMANCE AND RANKINGS WOULD HAVE BEEN LOWER.
(2) LIPPER CATEGORY AVERAGE TOTAL RETURN REPRESENTS THE AVERAGE ANNUAL TOTAL
RETURN FOR ALL FUNDS IN EACH FUND'S CORRESPONDING INVESTMENT CATEGORY AS
DETERMINED BY LIPPER INC. THE LIPPER CATEGORY INDEX TOTAL RETURN
REPRESENTS THE AVERAGE ANNUAL TOTAL RETURN OF 30 FUNDS, OR 10 FUNDS FOR
THE LIPPER EMERGING MARKETS FUNDS INDEX, LIPPER GLOBAL FLEXIBLE PORTFOLIO
FUNDS INDEX AND LIPPER SCIENCE AND TECHNOLOGY FUNDS INDEX IN EACH FUND'S
CORRESPONDING INVESTMENT CATEGORY AS DETERMINED BY LIPPER. RANKINGS ARE
BASED ON THE TOTAL RETURN OF EACH FUND FOR THE PERIOD RELATIVE TO THE
TOTAL RETURN OF ALL FUNDS IN THAT FUND'S CORRESPONDING INVESTMENT
CATEGORY.
SOURCE: LIPPER INC.
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
MODIFIED ACTUAL
1 YEAR 3 YEARS 5 YEARS INCEPTION(3) INCEPTION(4)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LOOMIS SAYLES INTERNATIONAL EQUITY FUND 34.39% 14.84% 14.24% 11.98% 11.90%
Lipper International Funds Average 10.77% 8.25% 10.37% 9.80% NA
Rank 36/655 57/461 38/285 10/59 NA
Percentile 6 13 14 17 NA
Lipper International Funds Index 10.82% 8.41% 11.51% 10.41% NA
LOOMIS SAYLES MID-CAP VALUE FUND 14.21% 3.89% NA 9.90% 9.90%
Lipper Mid-Cap Value Funds Average 24.24% 6.78% NA 12.58% NA
Rank 112/168 78/120 NA 66/105 NA
Percentile 67 65 NA 63 NA
Lipper Mid-Cap Value Funds Index 20.75% 5.30% NA 10.65% NA
LOOMIS SAYLES RESEARCH FUND NA NA NA 5.40% 5.40%
Lipper Large-Cap Core Funds Average NA NA NA 1.01% NA
Rank NA NA NA NA NA
Percentile NA NA NA NA NA
Lipper Large-Cap Core Funds Index NA NA NA 1.21% NA
LOOMIS SAYLES SMALL CAP GROWTH FUND 61.17% 31.39% NA 32.17% 32.17%
Lipper Mid-Cap Growth Funds Average 63.89% 27.06% NA 27.77% NA
Rank 130/240 54/167 NA 50/152 NA
Percentile 54 33 NA 33 NA
Lipper Mid-Cap Growth Funds Index 59.32% 26.09% NA 25.56% NA
LOOMIS SAYLES SMALL CAP VALUE FUND 20.66% 3.59% 14.15% 16.28% 16.46%
Lipper Small-Cap Value Funds Average 20.66% 2.09% 12.67% 13.58% NA
Rank 137/311 70/197 33/108 6/28 NA
Percentile 44 36 31 21 NA
Lipper Small-Cap Value Funds Index 16.86% 1.61% 10.54% 12.45% NA
LOOMIS SAYLES WORLDWIDE FUND 46.53% 15.45% NA 15.56% 15.48%
Lipper Global Flexible Portfolio Funds Average 13.03% 9.20% NA 11.70% NA
Rank 1/99 9/74 NA 5/52 NA
Percentile 1 12 NA 10 NA
Lipper Global Flexible Portfolio Funds Index 13.29% 9.37% NA 11.84% NA
</TABLE>
(3) MODIFIED INCEPTION REFLECTS THE NEAREST LIPPER REPORTING PERIOD FOLLOWING
ACTUAL INCEPTION. LIPPER PERFORMANCE IS REPORTED AS OF MONTH END.
(4) ACTUAL INCEPTION DATES:
AGGRESSIVE GROWTH FUND DECEMBER 31, 1996
CORE VALUE FUND MAY 13, 1991
EMERGING MARKETS FUND NOVEMBER 9, 1999
GLOBAL TECHNOLOGY FUND JANUARY 31, 2000
GROWTH FUND MAY 16, 1991
INTERNATIONAL EQUITY FUND MAY 10, 1991
MID-CAP VALUE FUND DECEMBER 31, 1996
RESEARCH FUND JULY 31, 2000
SMALL CAP GROWTH FUND DECEMBER 31, 1996
SMALL CAP VALUE FUND MAY 13, 1991
WORLDWIDE FUND MAY 1, 1996#
LOOMIS SAYLES EQUITY FUNDS 9
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES AGGRESSIVE GROWTH FUND
CHRISTOPHER R. ELY
[PHOTO OF CHRISTOPHER R. ELY]
PHILIP C. FINE
[PHOTO OF PHILIP C. FINE]
DAVID L. SMITH
[PHOTO OF DAVID L. SMITH]
KEY FUND FACTS
OBJECTIVE Long-term capital growth
STRATEGY Invests primarily in stocks with market capitalization falling within
the capitalization range of the Russell Midcap Growth Index
FUND INCEPTION DATE 12/31/96
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 1/2/97; Retail: 1/2/97;
Admin: 7/31/00
EXPENSE RATIO Institutional: 1.00%; Retail: 1.25%; Admin: 1.50%
TOTAL NET ASSETS (ALL CLASSES) $173.2 Million
PERFORMANCE
For the twelve-month period ended September 30, 2000, the Institutional and
Retail classes of the Aggressive Growth Fund returned 147.80% and 146.98%,
respectively, and for the period from July 31, 2000 through September 30,
2000 the Admin class returned 17.16%. The Fund's benchmark, the Russell
Midcap Growth Index returned 60.37% for the twelve-month period. The average
multi-cap growth fund, as measured by Lipper Inc., posted a total return of
53.43% for the same period.
PORTFOLIO REVIEW
Small- and mid-cap growth companies advanced in an almost unprecedented
fashion through mid-March, when investors finally responded to the Federal
Reserve Board's rate hikes, uncertainty about the direction of the economy
and an overvalued technology sector. The market remained volatile for the
remainder of the fiscal year, with additional pressures from a weak euro,
rising energy prices and a slowing economy.
Despite a correction in the technology sector, the Fund's technology
weighting remained strong and continued to drive overall portfolio
performance. Nevertheless, we did reduce exposure to companies that rely
heavily on the Internet for their business. We felt that high valuations made
these companies the greatest risks in the portfolio. We also further
diversified the Fund by increasing exposure to growth companies in the
financial, consumer services, healthcare and energy sectors. Stock selection
continued to be the main contributor to the Fund's strong performance.
PORTFOLIO POSITIONING
We continue to invest approximately half the Fund's assets in technology
shares. Despite some near-term problems and concerns, we still anticipate
significant growth opportunities, particularly for the smaller and nimbler
companies focused on the leading edge of technology. Looking ahead, we expect
market volatility to continue until investors have adjusted their
expectations in the context of slower economic growth.
/s/ Christopher R. Ely /s/ Philip C. Fine /s/ Davil L. Smith
Christopher R. Ely Philip C. Fine David L. Smith
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
Since
1 Year 3 Years Inception(a)
---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES AGGRESSIVE GROWTH FUND (INSTITUTIONAL) 147.80% 63.59% 57.60%
LOOMIS SAYLES AGGRESSIVE GROWTH FUND (RETAIL) 146.98% 63.08% 57.18%
LOOMIS SAYLES AGGRESSIVE GROWTH FUND (ADMIN) N/A N/A 17.16%
Lipper Multi-Cap Growth Funds Index(b) 44.12% 24.26% 26.74%
Russell Midcap Growth Index(c) 60.37% 25.87% 27.85%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-DECEMBER 31, 1996 TO SEPTEMBER 30, 2000
----------------------------------------------------------------------------------------
Lipper Multi-Cap Growth Funds Loomis Sayles Aggressive Growth Fund(d) Russell Midcap Growth Index
Index
<S> <C> <C> <C>
12/31/96 $10,000 $10,000 $10,000
01/31/97 $10,480 $10,620 $10,443
02/28/97 $10,191 $10,290 $10,213
03/31/97 $9,665 $9,630 $9,635
04/30/97 $9,971 $9,740 $9,872
05/31/97 $10,817 $10,620 $10,756
06/30/97 $11,223 $10,720 $11,054
07/31/97 $12,257 $11,810 $12,112
08/31/97 $11,921 $11,540 $11,994
09/30/97 $12,675 $12,570 $12,601
10/31/97 $12,115 $12,290 $11,970
11/30/97 $12,191 $11,910 $12,096
12/31/97 $12,295 $12,265 $12,254
01/31/98 $12,349 $11,625 $12,033
02/28/98 $13,376 $12,553 $13,165
03/31/98 $14,029 $12,980 $13,717
04/30/98 $14,191 $13,322 $13,903
05/31/98 $13,652 $12,724 $13,331
06/30/98 $14,354 $13,375 $13,708
07/31/98 $14,004 $12,692 $13,121
08/31/98 $11,412 $10,119 $10,617
09/30/98 $12,234 $11,219 $11,420
10/31/98 $12,922 $11,977 $12,261
11/30/98 $13,821 $12,073 $13,088
12/31/98 $15,344 $13,680 $14,443
01/31/99 $16,287 $13,813 $14,876
02/28/99 $15,438 $13,537 $14,149
03/31/99 $16,317 $17,363 $14,937
04/30/99 $16,713 $18,248 $15,617
05/31/99 $16,391 $18,923 $15,416
06/30/99 $17,537 $21,400 $16,493
07/31/99 $17,142 $21,234 $15,968
08/31/99 $16,970 $22,473 $15,802
09/30/99 $16,873 $22,207 $15,667
10/31/99 $18,062 $27,803 $16,879
11/30/99 $19,510 $32,629 $18,626
12/31/99 $22,456 $40,738 $21,851
01/31/00 $22,229 $41,880 $21,847
02/29/00 $25,782 $56,943 $26,440
03/31/00 $25,681 $51,718 $26,467
04/30/00 $23,528 $46,828 $23,898
05/31/00 $21,941 $42,110 $22,156
06/30/00 $24,117 $48,073 $24,507
07/31/00 $23,360 $46,932 $22,955
08/31/00 $25,890 $55,547 $26,417
09/30/00 $24,317 $55,028 $25,125
</TABLE>
The Fund's strong performance was attributable to unusually favorable
conditions that are not likely to be sustainable, including strong sector
weightings in business services, energy and technology, and investments in
initial public offerings (IPOs).
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different
accounting standards than those of the U.S., which may adversely affect the
value of the Fund.
Small and mid-cap stocks may be more volatile and subject to wider value
fluctuations than larger, more established companies. The secondary market of
small and mid-cap stocks may be less liquid, or harder to sell, which could
also adversely impact the Fund's value.
A portion of the Fund's returns were attributable to investments in IPOs. No
assurance can be given that the Fund will continue to be able to invest in
IPOs to the same extent as it currently does and there is no guarantee that
that these high risk investments will have the same effect on the Fund's
performance if they are made in the future.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS
CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND
RANKINGS WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL AND RETAIL CLASS OF SHARES IS
DECEMBER 31, 1996. INCEPTION DATE OF THE ADMIN CLASS OF SHARES IS JULY 31,
2000. PERFORMANCE FOR THE ADMIN CLASS OF SHARES IS PRESENTED FROM
COMMENCEMENT OF OPERATIONS ON JULY 31, 2000.
(b) DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS CHANGED FROM MID-CAP FUNDS TO MULTI-CAP GROWTH FUNDS. THE LIPPER
MULTI-CAP GROWTH FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED INDEX OF
TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE MULTI-CAP GROWTH FUNDS
INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL
GAINS DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE: LIPPER INC.
(c) THE RUSSELL MIDCAP GROWTH INDEX IS AN UNMANAGED INDEX WHICH MEASURES THE
PERFORMANCE OF THOSE RUSSELL MIDCAP COMPANIES WITH LOWER PRICE-TO-BOOK RATIOS
AND LOWER FORECASTED GROWTH VALUES. THE STOCKS ARE ALSO MEMBERS OF THE
RUSSELL 1000 GROWTH INDEX. THE INDEX RETURNS HAVE NOT BEEN LOWERED FOR
ONGOING MANAGEMENT AND OPERATING EXPENSES APPLICABLE TO MUTUAL FUND
INVESTMENTS. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX.
(d) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL AND ADMIN CLASSES OF SHARES WOULD, DUE TO THE
HIGHER FEES PAID BY THE RETAIL AND ADMIN CLASSES OF SHARES, BE LOWER.
LOOMIS SAYLES EQUITY FUNDS 11
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES CORE VALUE FUND
WARREN KOONTZ
[PHOTO OF WARREN KOONTZ]
TRICIA MILLS
[PHOTO OF TRICIA MILLS]
JEFFREY W. WARDLOW
[PHOTO OF JEFFREY W. WARDLOW]
KEY FUND FACTS
OBJECTIVE Long-term growth of capital and income
STRATEGY Invests in stocks considered to be undervalued in relation to the
issuer's earnings, dividends, assets and growth prospects
FUND INCEPTION DATE 5/13/91
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 5/13/91; Retail: 1/2/97
EXPENSE RATIO Institutional: 0.85%; Retail: 1.10%
TOTAL NET ASSETS (ALL CLASSES) $39.1 Million
PERFORMANCE
For the twelve-month period ended September 30, 2000, the Institutional and
Retail classes of the Core Value Fund returned 3.60% and 3.35%, respectively,
compared to the 13.28% return for the Fund's benchmark, the Standard & Poor's
500 Index. The average multi-cap value fund, as measured by Lipper Inc.,
posted a total return of 11.94% for the same period.
PORTFOLIO REVIEW
Conditions remained generally unfavorable for large-capitalization value
stocks throughout the first six months of the fiscal year. The situation
improved in the final six months, as ongoing volatility in many high-growth
sectors took its toll, and value stocks returned to favor.
Throughout the year, investor sentiment became increasingly wary of a
decelerating economy. In response, defensive industries, such as utilities,
financials, energy and healthcare, emerged as relatively strong performers as
the year progressed. In addition, rising oil prices further bolstered the
energy sector. With good exposure to these areas, the Fund's performance
benefited. But it was not enough to overcome the overall negative influence
from technology and communication stocks. A large part of the Fund's
underperformance came from technology, where a value approach is more
difficult to implement.
PORTFOLIO POSITIONING
As often happens, this year's market action did not turn out as most
expected. Early in the year the Federal Reserve Board was tightening and oil
prices were skyrocketing. This is hardly the type of environment in which
utilities and financials would be expected to lead the market, but that's
what happened. The Fund has been over-weighted in these sectors, and the
valuations still are reasonable, although not as compelling as earlier in the
year. Not surprisingly, the most undervalued segments of the market now are
probably the areas most out of favor--basic materials, consumer cyclicals and
some of the beaten-up technology stocks. We are treading carefully in these
sectors, given the severe punishments the market has been giving to companies
that disappoint.
/s/ Warren Koontz /s/ Tricia Mills /s/ Jeffrey W. Wardlow
Warren Koontz Tricia Mills Jeffrey W. Wardlow
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
Since
1 Year 3 Years 5 Years Inception(a)
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES CORE VALUE FUND (INSTITUTIONAL) 3.60% 2.70% 12.26% 12.97%
LOOMIS SAYLES CORE VALUE FUND (RETAIL)(b) 3.35% 2.41% 12.03% 12.84%
Lipper Multi-Cap Value Funds Index(c) 10.61% 5.80% 13.60% 13.49%
S&P 500 Index(d) 13.28% 16.44% 21.69% 17.56%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-MAY 31, 1991 TO SEPTEMBER 30, 2000
-----------------------------------------------------------------------------------
Lipper Multi-Cap Loomis Sayles Core
Value Funds Index Value Fund(e) S&P 500 Index
<S> <C> <C> <C>
5/31/91 $10,000 $10,000 $10,000
06/30/91 $9,576 $9,431 $9,542
07/31/91 $9,955 $9,744 $9,987
08/31/91 $10,161 $9,981 $10,223
09/30/91 $10,110 $9,716 $10,052
10/31/91 $10,281 $9,754 $10,187
11/30/91 $9,884 $9,118 $9,777
12/31/91 $10,790 $10,157 $10,895
01/31/92 $10,812 $10,485 $10,692
02/29/92 $11,030 $10,706 $10,830
03/31/92 $10,827 $10,456 $10,620
04/30/92 $10,983 $10,697 $10,932
05/31/92 $11,104 $10,716 $10,985
06/30/92 $10,961 $10,485 $10,822
07/31/92 $11,294 $10,909 $11,264
08/31/92 $11,095 $10,591 $11,033
09/30/92 $11,271 $10,668 $11,163
10/31/92 $11,323 $10,764 $11,201
11/30/92 $11,761 $11,361 $11,583
12/31/92 $12,005 $11,589 $11,725
01/31/93 $12,213 $11,850 $11,823
02/28/93 $12,278 $11,961 $11,984
03/31/93 $12,646 $12,182 $12,237
04/30/93 $12,404 $11,860 $11,941
05/31/93 $12,695 $12,121 $12,261
06/30/93 $12,782 $12,111 $12,297
07/31/93 $12,866 $12,021 $12,247
08/31/93 $13,377 $12,503 $12,712
09/30/93 $13,368 $12,433 $12,614
10/31/93 $13,569 $12,704 $12,875
11/30/93 $13,324 $12,523 $12,753
12/31/93 $13,654 $12,965 $12,907
01/31/94 $14,096 $13,464 $13,346
02/28/94 $13,827 $13,329 $12,983
03/31/94 $13,277 $12,779 $12,417
04/30/94 $13,455 $13,038 $12,577
05/31/94 $13,607 $13,183 $12,783
06/30/94 $13,359 $12,779 $12,470
07/31/94 $13,719 $13,225 $12,879
08/31/94 $14,251 $13,806 $13,407
09/30/94 $13,939 $13,329 $13,079
10/31/94 $14,082 $13,308 $13,373
11/30/94 $13,543 $12,685 $12,886
12/31/94 $13,669 $12,851 $13,077
01/31/95 $13,880 $13,123 $13,416
02/28/95 $14,438 $13,842 $13,939
03/31/95 $14,767 $14,213 $14,351
04/30/95 $15,143 $14,746 $14,773
05/31/95 $15,698 $15,378 $15,364
06/30/95 $15,987 $15,487 $15,720
07/31/95 $16,574 $16,086 $16,242
08/31/95 $16,751 $16,173 $16,283
09/30/95 $17,216 $16,685 $16,970
10/31/95 $16,910 $16,271 $16,909
11/30/95 $17,629 $17,011 $17,651
12/31/95 $17,907 $17,378 $17,991
01/31/96 $18,457 $17,891 $18,603
02/29/96 $18,729 $18,046 $18,776
03/31/96 $18,946 $18,237 $18,957
04/30/96 $19,239 $18,237 $19,236
05/31/96 $19,553 $18,583 $19,733
06/30/96 $19,420 $18,619 $19,808
07/31/96 $18,632 $17,939 $18,933
08/31/96 $19,208 $18,368 $19,332
09/30/96 $19,992 $19,283 $20,421
10/31/96 $20,383 $19,810 $20,983
11/30/96 $21,729 $21,192 $22,569
12/31/96 $21,666 $21,056 $22,122
01/31/97 $22,474 $22,163 $23,504
02/28/97 $22,745 $22,311 $23,688
03/31/97 $22,032 $21,555 $22,715
04/30/97 $22,640 $22,311 $24,071
05/31/97 $24,071 $23,661 $25,537
06/30/97 $24,999 $24,822 $26,683
07/31/97 $26,837 $26,989 $28,804
08/31/97 $26,242 $26,136 $27,190
09/30/97 $27,497 $27,470 $28,679
10/31/97 $26,350 $26,452 $27,721
11/30/97 $26,911 $27,236 $29,005
12/31/97 $27,497 $27,206 $29,503
01/31/98 $27,433 $27,268 $29,829
02/28/98 $29,321 $29,073 $31,981
03/31/98 $30,639 $29,952 $33,619
04/30/98 $30,812 $30,199 $33,957
05/31/98 $30,128 $29,674 $33,373
06/30/98 $30,096 $29,628 $34,729
07/31/98 $28,932 $28,301 $34,359
08/31/98 $24,505 $24,322 $29,399
09/30/98 $25,520 $25,988 $31,274
10/31/98 $27,621 $28,194 $33,818
11/30/98 $28,813 $29,165 $35,870
12/31/98 $29,291 $30,074 $37,934
01/31/99 $29,394 $30,004 $39,521
02/28/99 $28,710 $29,119 $38,292
03/31/99 $29,503 $30,178 $39,826
04/30/99 $32,126 $32,348 $41,367
05/31/99 $31,959 $32,157 $40,390
06/30/99 $32,988 $32,973 $42,636
07/31/99 $31,866 $31,758 $41,300
08/31/99 $30,768 $30,421 $41,096
09/30/99 $29,441 $28,719 $39,969
10/31/99 $30,352 $29,796 $42,499
11/30/99 $30,339 $29,609 $43,372
12/31/99 $31,030 $29,674 $45,917
1/31/00 $29,692 $28,395 $43,609
2/28/00 $28,129 $26,113 $42,784
3/31/00 $31,103 $28,749 $46,968
04/30/2000 $31,044 $28,631 $45,555
05/31/2000 $31,476 $29,123 $44,621
06/30/2000 $30,793 $28,435 $45,721
07/31/2000 $31,053 $28,317 $45,006
08/31/2000 $33,024 $30,225 $47,801
09/30/2000 $32,566 $29,753 $45,278
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different
accounting standards than those of the U.S., which may adversely affect the
value of the Fund.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS
CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND
RANKINGS WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL CLASS OF SHARES IS MAY 13, 1991.
SINCE LIPPER MULTI-CAP VALUE FUNDS INDEX AND S&P 500 INDEX PERFORMANCE DATA
IS NOT AVAILABLE COINCIDENT WITH THIS DATE, COMPARATIVE PERFORMANCE IS
PRESENTED FROM MAY 31, 1991. INCEPTION DATE OF THE RETAIL CLASS OF SHARES IS
DECEMBER 31, 1996.
(b) PERFORMANCE SHOWN FOR PERIODS PRIOR TO THE INCEPTION DATE OF THE RETAIL
CLASS (DECEMBER 31, 1996) REPRESENT THE PERFORMANCE OF THE INSTITUTIONAL
CLASS OF SHARES DURING THE PERIODS SHOWN, ADJUSTED TO REFLECT THE CURRENT
LEVELS OF MANAGEMENT AND 12b-1 FEES PAYABLE BY THE RESPECTIVE CLASS OF
SHARES.
(c) DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS CHANGED FROM GROWTH AND INCOME FUNDS TO MULTI-CAP VALUE FUNDS.
THE LIPPER MULTI-CAP VALUE FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED INDEX
OF TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE MULTI-CAP VALUE FUNDS
INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL
GAINS DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE: LIPPER INC.
(d) S&P 500 INDEX IS A CAPITALIZATION-WEIGHTED, UNMANAGED TOTAL RETURN INDEX
COMPRISED OF 500 WIDELY HELD COMMON STOCKS, REPRESENTING INDUSTRIAL, UTILITY,
TRANSPORTATION, AND FINANCIAL COMPANIES TRADED ON THE NEW YORK STOCK
EXCHANGE, THE AMERICAN STOCK EXCHANGE AND IN THE OVER-THE-COUNTER MARKET. THE
INDEX RETURNS HAVE NOT BEEN REDUCED FOR ONGOING MANAGEMENT AND OPERATING
EXPENSES APPLICABLE TO MUTUAL FUND INVESTMENTS. IT IS NOT POSSIBLE TO INVEST
DIRECTLY IN AN INDEX.
(e) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL CLASS OF SHARES WOULD, DUE TO THE HIGHER FEES PAID
BY THE RETAIL CLASS OF SHARES, BE LOWER.
LOOMIS SAYLES EQUITY FUNDS 13
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES EMERGING MARKETS FUND
ESWAR MENON
[PHOTO OF ESWAR MENON]
ALEXANDER MUROMCEW
[PHOTO OF ALEXANDER MUROMCEW]
JOHN TRIBOLET
[PHOTO OF JOHN TRIBOLET]
KEY FUND FACTS
OBJECTIVE Long-term capital growth
STRATEGY Invests primarily in stocks of issuers located in countries with
emerging securities markets
FUND INCEPTION DATE 11/9/99
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 11/9/99; Retail: 5/9/00
EXPENSE RATIO Institutional: 2.25%; Retail: 2.50%
TOTAL NET ASSETS (ALL CLASSES) $3.7 Million
PERFORMANCE
For the period from the Fund's inception on November 9, 1999, through
September 30, 2000, the Institutional class of the Emerging Markets Fund
returned 48.60% and from May 9, 2000 through September 30, 2000, the Retail
class returned -8.64%. The Fund's benchmark, the Morgan Stanley Capital
International Emerging Markets Free (MSCI EMF) Index returned -11.20%, and
the average emerging markets fund, as measured by Lipper Inc., posted a total
return of -5.48% for the Fund's modified inception on November 30, 1999
through September 30, 2000.
PORTFOLIO REVIEW
In the first half of the fiscal year, emerging markets offered strong
performance. In particular, oil-producing countries, such as Mexico and
Venezuela, showed strong returns due to rising oil prices, and Brazil
benefited from continued economic strength. Also, as was the case in the
U.S., technology was the best place to be. But, in the second half of the
fiscal year, markets around the world fell in sympathy with the decline of
the U.S. market, and the sharpest drops were felt in the technology sector.
Several factors were driving the overall sense of nervousness, including the
direction of U.S. interest rates and rising oil prices; the continuing
decline of the euro; stalled reform efforts in Asia; concerns over high
valuations, particularly in the technology sector; and concerns over
individual earnings results.
The Fund's out-performance for the period was due primarily to good stock
selection in the information technology, telecommunications, energy and
consumer discretionary sectors; an overweight position in telecommunications
and energy; good stock selection in Brazil and Mexico; and overweight
positions in Israel, Russia and Taiwan.
PORTFOLIO POSITIONING
The outlook for the remainder of 2000 is one of continued caution regarding
market volatility. We believe the two largest factors affecting the markets
will be the interest rate picture and earnings announcements. Although there
are indications that the U.S. economy is beginning to slow, in Europe, the
Central Bank is faced with a scenario of weakening currency and higher
prices, driven primarily by oil. In addition, earnings are showing signs of
weakness as world economies begin to slow. While this environment can be
troubling in the near term, we believe it presents excellent opportunities
for long-term investors.
/s/ Eswar Menon /s/ Alexander Muromcew /s/ John Tribolet
Eswar Menon Alexander Muromcew John Tribolet
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS-PERIOD ENDED SEPTEMBER 30, 2000
Since
Inception(a)
---------------------------------------------------------------------------------
<S> <C>
LOOMIS SAYLES EMERGING MARKETS FUND (INSTITUTIONAL) 48.60%
LOOMIS SAYLES EMERGING MARKETS FUND (RETAIL)(b) 47.95%
Lipper Emerging Markets Funds Index(c) -6.84%
Morgan Stanley Capital International EMF Index(d) -11.20%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-NOVEMBER 30, 1999 TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
Lipper Emerging Loomis Sayles Morgan Stanley Capital
Markets Funds Emerging Market Fund(e) International EMF
Index Index
<S> <C> <C> <C>
11/30/99 $10,000 $10,000 $10,000
12/31/99 $11,757 $12,935 $11,259
01/31/00 $11,621 $12,310 $11,304
02/29/00 $11,966 $15,478 $11,450
03/31/00 $12,002 $15,989 $11,489
04/30/00 $10,696 $13,115 $10,383
05/31/00 $10,127 $11,588 $9,931
06/30/00 $10,629 $12,340 $10,249
07/31/00 $10,195 $11,813 $9,710
08/31/00 $10,301 $12,491 $9,744
09/30/00 $9,316 $11,181 $8,880
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different
accounting standards than those of the U.S., which may adversely affect the
value of the Funds.
A significant portion of the Fund's returns were attributable to investments
in IPOs. No assurance can be given that the Fund will continue to be able to
invest in IPOs to the same extent as it currently does and there is no
guarantee that that these high risk investments will have the same effect on
the Fund's performance if they are made in the future.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN
FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND RANKINGS
WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL CLASS OF SHARES IS NOVEMBER 9, 1999.
SINCE LIPPER EMERGING MARKETS FUNDS INDEX AND MORGAN STANLEY CAPITAL
INTERNATIONAL EMF INDEX PERFORMANCE DATA IS NOT AVAILABLE COINCIDENT WITH
THIS DATE, COMPARATIVE PERFORMANCE IS PRESENTED FROM NOVEMBER 30, 1999.
INCEPTION DATE OF THE RETAIL CLASS OF SHARES IS MAY 9, 2000.
(b) PERFORMANCE SHOWN FOR THE PERIOD PRIOR TO THE INCEPTION DATE OF THE
RETAIL CLASS (MAY 9, 2000) REPRESENT THE PERFORMANCE OF THE INSTITUTIONAL
CLASS OF SHARES DURING THE PERIOD SHOWN, ADJUSTED TO REFLECT THE CURRENT FEE
PAYABLE BY THE RESPECTIVE CLASS OF SHARES (I.E. A .25% 12b-1 FEE).
(c) THE LIPPER EMERGING MARKETS FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED
INDEX OF TYPICALLY THE 10 LARGEST MUTUAL FUNDS WITHIN THE EMERGING MARKETS
FUNDS INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF
CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE: LIPPER INC.
(d) THE MORGAN STANLEY CAPITAL INTERNATIONAL EMF INDEX IS AN UNMANAGED
REGIONAL INDEX COMPRISED OF 25 EMERGING MARKET COUNTRIES. IT IS NOT POSSIBLE
TO INVEST DIRECTLY IN AN INDEX.
(e) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL CLASS OF SHARES WOULD, DUE TO THE HIGHER FEES PAID
BY THE RETAIL CLASS OF SHARES, BE LOWER.
LOOMIS SAYLES EQUITY FUNDS 15
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND
CHRISTOPHER R. ELY
[PHOTO OF CHRISTOPHER R. ELY]
PHILIP C. FINE
[PHOTO OF PHILIP C. FINE]
DAVID L. SMITH
[PHOTO OF DAVID L. SMITH]
ESWAR MENON
[PHOTO OF ESWAR MENON]
ALEXANDER MUROMCEW
[PHOTO OF ALEXANDER MUROMCEW]
JOHN TRIBOLET
[PHOTO OF JOHN TRIBOLET]
KEY FUND FACTS
OBJECTIVE Long-term capital growth
STRATEGY Invests in stocks of technology companies located in the United
States or abroad
FUND INCEPTION DATE 1/31/00
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 1/31/00; Retail: 1/31/00
EXPENSE RATIO Institutional: 1.50%; Retail: 1.75%
TOTAL NET ASSETS (ALL CLASSES) $13.4 Million
PERFORMANCE
From the Fund's inception on January 31, 2000, through September 30, 2000,
the Institutional and Retail classes of the Global Technology Fund returned
27.00% and 25.90%, respectively, compared to the -1.82% return for the Fund's
benchmark, the Morgan Stanley Capital International World Index and -10.27%
for the Morgan Stanley Capital International Information Technology Index.
The average science and technology fund, as measured by Lipper Inc., posted a
total return of 5.35% for the same period.
PORTFOLIO REVIEW
The Fund commenced operations in January 2000, and by the end of March,
global technology stocks had followed the U.S. market's lead and were in the
midst of an all-out correction that lingered through the end of the fiscal
year. Investors finally responded to the Federal Reserve Board's interest
rate hikes, uncertainty about the direction of the economy, and concerns that
a bursting Internet bubble would have a broader impact on the market.
Nevertheless, the Fund stayed true to its charter of being fully invested in
a global portfolio of rapidly growing technology stocks. We continued to
direct 50 percent of the Fund's cash flow to domestic issues and 50 percent
to foreign issues. This strategy, along with our stock selections,
contributed to the Fund's strong performance for the period.
PORTFOLIO POSITIONING
This Fund represents our best technology ideas. In addition, as technology
investing has blossomed outside the United States, our ability to buy the
best names around the world has helped performance. We expect some of the
Fund's largest holdings will be key beneficiaries of the wireless revolution
taking hold in the United States and now further advanced in Europe and Asia.
Even though many of the stocks in the technology industry were quite volatile
during the year, our fundamental outlook has not weakened, and we continue to
be optimistic in this area.
/s/ Christopher R. Ely /s/ Philip C. Fine /s/ David L. Smith
Christopher R. Ely Philip C. Fine David L. Smith
/s/ Eswar Menon /s/ Alexander Muromcew /s/ John Tribolet
Eswar Menon Alexander Muromcew John Tribolet
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS-PERIOD ENDED SEPTEMBER 30, 2000
Since
Inception(a)
---------------------------------------------------------------------------------
<S> <C>
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (INSTITUTIONAL) 27.00%
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (RETAIL) 25.90%
Lipper Science and Technology Funds Index(b) 7.76%
Morgan Stanley Capital International World Index(c) -1.82%
Morgan Stanley Capital International Information Technology Index(d) -10.27%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-JANUARY 31, 2000 TO SEPTEMBER 30, 2000
-----------------------------------------------------------------------------------------------------------
Lipper Science & Loomis Sayles Morgan Stanley Capital Morgan Stanley
Technology Funds Global Technology International World Capital International
Index Fund (e) Index Information Technology Index
<S> <C> <C> <C> <C>
1/31/00 $10,000 $10,000 $10,000 $10,000
2/29/00 $12,694 $13,520 $10,026 $11,166
3/31/00 $12,307 $14,110 $10,717 $11,816
4/30/00 $10,870 $12,130 $10,263 $10,870
5/31/00 $9,559 $10,880 $10,002 $9,764
6/30/00 $11,008 $12,740 $10,338 $10,717
7/31/00 $10,425 $11,740 $10,045 $10,057
8/31/00 $12,007 $13,690 $10,371 $11,016
9/30/00 $10,776 $12,700 $9,818 $8,973
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different
accounting standards than those of the U.S., which may adversely affect the
value of the Fund.
A significant portion of the Fund's returns were attributable to investments
in IPOs. No assurance can be given that the Fund will continue to be able to
invest in IPOs to the same extent as it currently does and there is no
guarantee that these high risk investments will have the same effect on the
Fund's performance if they are made in the future.
The Fund concentrates its investments in the technology sector, which may
perform differently and be more or less volatile than the market as a whole,
and accordingly, that sector may be more susceptible to economic, business or
other developments, all of which may impact the value of the Fund.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS
CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND
RANKINGS WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL AND RETAIL CLASS OF SHARES IS JANUARY
31, 2000.
(b) THE LIPPER SCIENCE & TECHNOLOGY FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED
INDEX OF TYPICALLY THE 10 LARGEST MUTUAL FUNDS WITHIN THE SCIENCE & TECHNOLOGY
FUNDS INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL
GAINS DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE: LIPPER INC.
(c) THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX IS AN UNMANAGED
REGIONAL INDEX COMPRISED OF 22 DEVELOPED MARKET COUNTRIES. IT IS NOT POSSIBLE TO
INVEST DIRECTLY IN AN INDEX.
(d) THE MORGAN STANLEY CAPITAL INTERNATIONAL INFORMATION TECHNOLOGY INDEX IS AN
UNMANAGED REGIONAL AND SECTORIAL INDEX COMPRISED OF 22 DEVELOPED MARKET
COUNTRIES. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX.
(e) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL CLASS OF SHARES WOULD, DUE TO THE HIGHER FEES PAID BY
THE RETAIL CLASS OF SHARES, BE LOWER.
LOOMIS SAYLES EQUITY FUNDS 17
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES GROWTH FUND
MARK B. BARIBEAU
[PHOTO OF MARK B. BARIBEAU]
PAMELA N. CZEKANSKI
[PHOTO OF PAMELA N. CZEKANSKI]
RICHARD SKAGGS
[PHOTO OF RICHARD SKAGGS]
KEY FUND FACTS
OBJECTIVE Long-term growth of capital
STRATEGY Invests in stocks with large market capitalization
FUND INCEPTION DATE 5/16/91
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 5/16/91; Retail: 1/2/97;
Admin: 7/31/00
EXPENSE RATIO Institutional: 0.85%; Retail: 1.10%; Admin: 1.35%
TOTAL NET ASSETS (ALL CLASSES) $46.4 Million
PERFORMANCE
For the twelve-month period ended September 30, 2000, the Institutional and
Retail classes of the Growth Fund returned 45.64% and 45.25%, respectively,
and from July 31, 2000 through September 30, 2000 the Admin class returned
4.97%. The Fund's benchmark, the Standard & Poor's 500 Index returned 13.28%
for the twelve-month period. The average large-cap growth fund, as measured
by Lipper Inc., posted a total return of 30.33% for the same period.
PORTFOLIO REVIEW
After starting the fiscal year on a very strong note, large-capitalization
growth stocks were hit with strong volatility. In particular, technology
stocks experienced significant swings, driving the market's strong
performance early in the year and leading the decline caused by higher
interest rates and the battle between old- and new-economy stocks.
In the second half of the fiscal year, the list of winners broadened to
include stocks of companies with relatively favorable earnings outlooks and
less economic sensitivity, including a number of healthcare companies and
select consumer companies. Financial services stocks also emerged as leaders,
after it appeared the Federal Reserve Board was finished tightening and
economic growth was cooling.
The Fund performed strongly throughout the twelve-month period, significantly
outperforming its benchmark and peer group average. This primarily was due to
positive stock selection across most major sectors, particularly the
technology sector.
PORTFOLIO POSITIONING
The Fund remains focused on companies with superior earnings growth and
strong revenue and unit sales growth. We believe these companies are more
likely to continue to post strong results as economic growth slows. We
continue to overweight two key areas--technology and financial services. The
technology portion is positioned to take advantage of strong demand trends
for technology equipment and software related to Internet infrastructure,
data storage and networking and supply chain logistics. With steady interest
rates and a slowing economy, the path has been cleared for continued
revaluation of financial services stocks, particularly given the rapid global
consolidation of the brokerage, asset gathering and consumer finance
industries.
/s/ Mark B. Baribeau /s/ Pamela N. Czekanski /s/ Richard Skaggs
Mark B. Baribeau Pamela N. Czekanski Richard Skaggs
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
Since
1 Year 3 Years 5 Years Inception(a)
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES GROWTH FUND (INSTITUTIONAL) 45.64% 19.76% 21.37% 17.89%
LOOMIS SAYLES GROWTH FUND (RETAIL)(b) 45.25% 19.44% 21.13% 17.77%
LOOMIS SAYLES GROWTH FUND (ADMIN) N/A N/A N/A 4.97%
Lipper Large-Cap Growth Funds Index(c) 23.73% 21.95% 23.41% 18.67%
S&P 500 Index(d) 13.28% 16.44% 21.69% 17.56%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-MAY 31, 1991 TO SEPTEMBER 30, 2000
Lipper Large-Cap Growth Funds Loomis Sayles Growth Fund(e) S&P 500 Index
Index
<S> <C> <C> <C>
5/31/91 $10,000 $10,000 $10,000
6/30/91 $9,455 $9,287 $9,542
7/31/91 $9,974 $10,141 $9,987
8/31/91 $10,313 $10,582 $10,223
9/30/91 $10,207 $10,750 $10,052
10/31/91 $10,369 $11,116 $10,187
11/30/91 $9,999 $10,422 $9,777
12/31/91 $11,190 $11,693 $10,895
1/31/92 $11,171 $11,498 $10,692
2/29/92 $11,242 $11,615 $10,830
3/31/92 $10,865 $10,787 $10,620
4/30/92 $10,811 $10,261 $10,932
5/31/92 $10,927 $10,661 $10,985
6/30/92 $10,608 $10,291 $10,822
7/31/92 $10,993 $10,690 $11,264
8/31/92 $10,800 $10,485 $11,033
9/30/92 $10,994 $10,641 $11,163
10/31/92 $11,216 $11,216 $11,201
11/30/92 $11,788 $11,819 $11,583
12/31/92 $11,961 $12,131 $11,725
1/31/93 $12,012 $12,267 $11,823
2/28/93 $11,795 $12,131 $11,984
3/31/93 $12,170 $12,452 $12,237
4/30/93 $11,795 $12,072 $11,941
5/31/93 $12,240 $12,705 $12,261
6/30/93 $12,338 $12,783 $12,297
7/31/93 $12,254 $12,773 $12,247
8/31/93 $12,763 $13,338 $12,712
9/30/93 $12,954 $13,494 $12,614
10/31/93 $13,102 $13,523 $12,875
11/30/93 $12,837 $12,978 $12,753
12/31/93 $13,236 $13,260 $12,907
1/31/94 $13,718 $13,738 $13,346
2/28/94 $13,496 $13,239 $12,983
3/31/94 $12,835 $12,740 $12,417
4/30/94 $12,897 $12,852 $12,577
5/31/94 $12,975 $12,883 $12,783
6/30/94 $12,491 $12,251 $12,470
7/31/94 $12,850 $12,669 $12,879
8/31/94 $13,508 $13,097 $13,407
9/30/94 $13,187 $12,771 $13,079
10/31/94 $13,524 $13,270 $13,373
11/30/94 $13,026 $12,659 $12,886
12/31/94 $13,127 $12,776 $13,077
1/31/95 $13,229 $12,929 $13,416
2/28/95 $13,685 $13,277 $13,939
3/31/95 $14,073 $13,634 $14,351
4/30/95 $14,457 $13,808 $14,773
5/31/95 $14,935 $14,248 $15,364
6/30/95 $15,698 $15,178 $15,720
7/31/95 $16,552 $15,893 $16,242
8/31/95 $16,644 $16,261 $16,283
9/30/95 $17,262 $16,670 $16,970
10/31/95 $17,164 $16,527 $16,909
11/30/95 $17,704 $16,905 $17,651
12/31/95 $17,711 $16,725 $17,991
1/31/96 $18,232 $16,703 $18,603
2/29/96 $18,642 $17,240 $18,776
3/31/96 $18,651 $17,261 $18,957
4/30/96 $19,094 $18,258 $19,236
5/31/96 $19,658 $18,729 $19,733
6/30/96 $19,481 $18,762 $19,808
7/31/96 $18,438 $17,064 $18,933
8/31/96 $18,991 $17,787 $19,332
9/30/96 $20,313 $19,002 $20,421
10/31/96 $20,566 $19,777 $20,983
11/30/96 $21,896 $20,608 $22,569
12/31/96 $21,352 $20,047 $22,122
1/31/97 $22,706 $21,822 $23,504
2/28/97 $22,380 $20,614 $23,688
3/31/97 $21,233 $19,391 $22,715
4/30/97 $22,398 $19,227 $24,071
5/31/97 $23,918 $21,121 $25,537
6/30/97 $24,920 $21,807 $26,683
7/31/97 $27,301 $24,015 $28,804
8/31/97 $25,812 $23,474 $27,190
9/30/97 $27,238 $25,558 $28,679
10/31/97 $26,292 $25,296 $27,721
11/30/97 $26,877 $24,524 $29,005
12/31/97 $27,244 $24,960 $29,503
1/31/98 $27,726 $23,932 $29,829
2/28/98 $29,843 $25,671 $31,981
3/31/98 $31,232 $26,561 $33,619
4/30/98 $31,755 $27,332 $33,957
5/31/98 $31,045 $26,225 $33,373
6/30/98 $32,822 $27,411 $34,729
7/31/98 $32,806 $25,928 $34,359
8/31/98 $27,449 $20,731 $29,399
9/30/98 $29,446 $23,023 $31,274
10/31/98 $31,345 $24,604 $33,818
11/30/98 $33,497 $24,762 $35,870
12/31/98 $37,180 $28,171 $37,934
1/31/99 $39,594 $29,034 $39,521
2/28/99 $37,968 $27,847 $38,292
3/31/99 $40,127 $30,357 $39,826
4/30/99 $40,264 $30,761 $41,367
5/31/99 $38,930 $29,898 $40,390
6/30/99 $41,636 $32,030 $42,636
7/31/99 $40,329 $30,626 $41,300
8/31/99 $40,338 $30,842 $41,096
9/30/99 $39,928 $30,141 $39,969
10/31/99 $42,990 $32,434 $42,499
11/30/99 $45,115 $34,679 $43,372
12/31/99 $50,125 $40,152 $45,917
1/31/00 $48,113 $38,572 $43,609
2/29/00 $50,644 $43,401 $42,784
3/31/00 $54,198 $44,571 $46,968
4/30/00 $50,004 $41,030 $45,555
5/31/00 $47,126 $38,308 $44,621
6/30/00 $50,242 $42,142 $45,721
7/31/00 $49,224 $41,762 $45,006
8/31/00 $53,482 $46,269 $47,801
9/30/00 $49,403 $43,898 $45,278
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different
accounting standards than those of the U.S., which may adversely affect the
value of the Fund.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS
CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND
RANKINGS WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL CLASS OF SHARES IS MAY 16, 1991.
SINCE LIPPER LARGE-CAP GROWTH FUNDS INDEX AND S&P 500 INDEX PERFORMANCE DATA
IS NOT AVAILABLE COINCIDENT WITH THIS DATE, COMPARATIVE PERFORMANCE IS
PRESENTED FROM MAY 31, 1991. INCEPTION DATES OF THE RETAIL AND ADMIN CLASSES
OF SHARES ARE DECEMBER 31, 1996 AND JULY 31, 2000, RESPECTIVELY. PERFORMANCE
FOR THE ADMIN CLASS OF SHARES IS PRESENTED FROM COMMENCEMENT OF CLASS
OPERATIONS ON JULY 31, 2000.
(b) PERFORMANCE SHOWN FOR PERIODS PRIOR TO THE INCEPTION DATE OF THE RETAIL
CLASS (DECEMBER 31, 1996) REPRESENTS THE PERFORMANCE OF THE INSTITUTIONAL
CLASS OF SHARES DURING THE PERIODS SHOWN, ADJUSTED TO REFLECT THE CURRENT
LEVELS OF MANAGEMENT AND 12b-1 FEES PAYABLE BY THE RESPECTIVE CLASS OF
SHARES.
(c) DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS CHANGED FROM GROWTH FUNDS TO LARGE-CAP GROWTH FUNDS. THE LIPPER
LARGE-CAP GROWTH FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED INDEX OF
TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE LARGE-CAP GROWTH FUNDS
INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL
GAINS DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE: LIPPER INC.
(d) S&P 500 INDEX IS A CAPITALIZATION-WEIGHTED, UNMANAGED TOTAL RETURN INDEX
COMPRISED OF 500 WIDELY HELD COMMON STOCKS, REPRESENTING INDUSTRIAL, UTILITY,
TRANSPORTATION, AND FINANCIAL COMPANIES TRADED ON THE NEW YORK STOCK
EXCHANGE, THE AMERICAN STOCK EXCHANGE AND IN THE OVER-THE-COUNTER MARKET. THE
INDEX RETURNS HAVE NOT BEEN REDUCED FOR ONGOING MANAGEMENT AND OPERATING
EXPENSES APPLICABLE TO MUTUAL FUND INVESTMENTS. IT IS NOT POSSIBLE TO INVEST
DIRECTLY IN AN INDEX.
(e) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL AND ADMIN CLASSES OF SHARES WOULD, DUE TO THE
HIGHER FEES PAID BY THE RETAIL AND ADMIN CLASSES OF SHARES, BE LOWER.
LOOMIS SAYLES EQUITY FUNDS 19
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES INTERNATIONAL EQUITY FUND
ESWAR MENON
[PHOTO OF ESWAR MENON]
ALEXANDER MUROMCEW
[PHOTO OF ALEXANDER MUROMCEW]
JOHN TRIBOLET
[PHOTO OF JOHN TRIBOLET]
KEY FUND FACTS
OBJECTIVE High total investment return
STRATEGY Invests primarily in stocks of companies organized or head-quartered
outside of the United States
FUND INCEPTION DATE 5/10/91
COMMENCEMENT OF OPERATIONS OF CLASS
Institutional: 5/10/91; Retail: 1/2/97; Admin: 7/31/00
EXPENSE RATIO Institutional: 1.00%; Retail: 1.25%; Admin: 1.50%
TOTAL NET ASSETS (ALL CLASSES) $113.4 Million
PERFORMANCE
For the twelve-month period ended September 30, 2000, the
Institutional and Retail classes of the International Equity Fund returned
34.39% and 33.92%, respectively, and from July 31, 2000 through September 30,
2000 the Admin class returned -1.82%. The Fund's benchmark, the Morgan
Stanley Capital International EAFE Index, a broad market index representing
21 international markets in Europe, Australia and the Far East, returned
3.18% for the twelve-month period. The average international fund, as
measured by Lipper Inc., posted a total return of 10.77% for the same period.
PORTFOLIO REVIEW
After outperforming their domestic counterparts in the fiscal year's first
quarter, international stocks succumbed to strong price volatility, as
investors nervously shifted money from one sector to another and sold once
high-flying technology stocks on any rumor of bad news. Driving the overall
sense of nervousness were the following factors: the direction of U.S.
interest rates and rising oil prices; the continuing decline of the euro;
stalled reform efforts in Asia; concerns over high valuations, particularly
in the technology sector; and concerns over individual earnings results.
The Fund's strong performance during the fiscal year primarily was due to the
portfolio's over-weighted positions in technology, energy and financial
holdings, and to favorable stock selection in Japan and Israel. Technology
was the strongest-performing sector in the first half of the fiscal year;
thereafter, returns were mixed. Energy holdings benefited from rising oil
prices throughout the year, and financials benefited from slowing worldwide
economic growth and improving interest rate scenarios.
PORTFOLIO POSITIONING
Our outlook for the remainder of the calendar year is one of continued
caution over market volatility. The Fund remains over-weighted in the
technology sector, with a focus on the information technology industry. We
believe that some of the Fund's largest holdings will be key beneficiaries of
the wireless revolution now taking hold in the U.S. and becoming further
advanced in Europe and Asia. Even though many of the stocks in this industry
have been volatile, our fundamental outlook has not weakened, and we remain
optimistic toward this area.
/s/ Eswar Menon /s/ Alexander Muromcew /s/ John Tribolet
Eswar Menon Alexander Muromcew John Tribolet
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
Since
1 Year 3 Years 5 Years Inception(a)
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (INSTITUTIONAL) 34.39% 14.84% 14.24% 11.90%
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (RETAIL)(b) 33.92% 14.49% 13.98% 11.77%
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (ADMIN) N/A N/A N/A -1.82%
Lipper International Funds Index(c) 10.82% 8.41% 11.51% 10.41%
Morgan Stanley Capital International-EAFE Index(d) 3.18% 7.39% 8.58% 8.11%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-MAY 31, 1991 TO SEPTEMBER 30, 2000
------------------------------------------------------------------------------------------------------
Lipper Loomis Sayles Morgan Stanley
International International Equity Capital International-
Funds Index Fund(e) EAFE Index
<S> <C> <C> <C>
5/31/91 $10,000 $10,000 $10,000
6/30/91 $9,479 $9,460 $9,265
07/31/91 $9,898 $9,960 $9,720
08/31/91 $9,807 $9,980 $9,523
09/30/91 $10,089 $10,360 $10,060
10/31/91 $10,130 $10,280 $10,202
11/30/91 $9,768 $9,980 $9,726
12/31/91 $10,226 $10,366 $10,228
01/31/92 $10,337 $10,649 $10,010
02/29/92 $10,353 $10,992 $9,652
03/31/92 $10,018 $10,831 $9,014
04/30/92 $10,282 $10,962 $9,057
05/31/92 $10,797 $11,416 $9,663
06/30/92 $10,469 $11,214 $9,205
07/31/92 $10,078 $10,966 $8,969
08/31/92 $10,126 $10,774 $9,532
09/30/92 $9,911 $10,531 $9,344
10/31/92 $9,617 $9,713 $8,854
11/30/92 $9,669 $9,713 $8,937
12/31/92 $9,788 $9,839 $8,983
01/31/93 $9,824 $10,094 $8,982
02/29/93 $10,045 $10,359 $9,253
03/31/93 $10,627 $10,768 $10,060
04/30/93 $11,178 $11,074 $11,015
05/31/93 $11,436 $11,421 $11,247
06/30/93 $11,211 $10,992 $11,072
07/31/93 $11,566 $11,176 $11,459
08/31/93 $12,332 $12,237 $12,078
09/30/93 $12,286 $12,135 $11,806
10/31/93 $12,893 $12,931 $12,170
11/30/93 $12,382 $12,676 $11,106
12/31/93 $13,623 $13,631 $11,908
01/31/94 $14,472 $14,540 $12,915
02/29/94 $14,124 $14,170 $12,879
03/31/94 $13,477 $13,641 $12,324
04/30/94 $13,834 $13,779 $12,847
05/31/94 $13,813 $13,568 $12,773
06/30/94 $13,595 $13,420 $12,954
07/31/94 $14,014 $13,789 $13,079
08/31/94 $14,499 $13,853 $13,388
09/30/94 $14,125 $13,641 $12,967
10/31/94 $14,377 $13,684 $13,398
11/30/94 $13,706 $13,282 $12,754
12/31/94 $13,523 $13,391 $12,834
01/31/95 $12,852 $13,137 $12,341
02/29/95 $12,849 $13,506 $12,306
03/31/95 $13,187 $13,679 $13,073
04/30/95 $13,672 $14,337 $13,565
05/31/95 $13,806 $14,798 $13,403
06/30/95 $13,859 $14,764 $13,168
07/31/95 $14,621 $15,156 $13,988
08/31/95 $14,374 $14,487 $13,454
09/30/95 $14,614 $14,775 $13,717
10/31/95 $14,310 $14,475 $13,349
11/30/95 $14,459 $14,348 $13,720
12/31/95 $14,878 $14,560 $14,273
01/31/96 $15,230 $15,047 $14,331
02/29/96 $15,295 $15,197 $14,380
03/31/96 $15,534 $15,222 $14,685
04/30/96 $16,040 $15,647 $15,112
05/31/96 $16,022 $15,584 $14,834
06/30/96 $16,168 $15,722 $14,917
07/31/96 $15,623 $15,347 $14,481
08/31/96 $15,827 $15,634 $14,513
09/30/96 $16,181 $15,931 $14,899
10/31/96 $16,116 $16,193 $14,746
11/30/96 $16,874 $16,894 $15,333
12/31/96 $17,025 $17,225 $15,136
01/31/97 $17,047 $17,329 $14,606
02/29/97 $17,355 $17,212 $14,845
03/31/97 $17,447 $17,277 $14,899
04/30/97 $17,523 $17,251 $14,978
05/31/97 $18,511 $18,088 $15,952
06/30/97 $19,400 $18,874 $16,832
07/31/97 $20,023 $19,485 $17,104
08/31/97 $18,579 $17,787 $15,827
09/30/97 $19,771 $18,981 $16,714
10/31/97 $18,270 $17,349 $15,429
11/30/97 $18,117 $16,978 $15,272
12/31/97 $18,259 $17,055 $15,405
01/31/98 $18,701 $17,735 $16,109
02/29/98 $19,888 $18,851 $17,143
03/31/98 $20,968 $19,787 $17,671
04/30/98 $21,290 $19,832 $17,811
05/31/98 $21,333 $19,304 $17,724
06/30/98 $21,146 $18,565 $17,859
07/31/98 $21,470 $18,851 $18,040
08/31/98 $18,382 $16,693 $15,805
09/30/98 $17,810 $16,210 $15,320
10/31/98 $19,119 $17,297 $16,917
11/30/98 $20,077 $18,142 $17,784
12/31/98 $20,571 $18,645 $18,485
01/31/99 $20,696 $18,629 $18,431
02/29/99 $20,163 $17,761 $17,992
03/31/99 $20,835 $18,040 $18,743
04/30/99 $21,806 $18,784 $19,502
05/31/99 $20,995 $18,195 $18,498
06/30/99 $21,991 $19,157 $19,219
07/31/99 $22,482 $20,041 $19,790
08/31/99 $22,660 $20,475 $19,862
09/30/99 $22,732 $21,390 $20,062
10/31/99 $23,526 $23,081 $20,814
11/30/99 $25,251 $28,336 $21,537
12/31/99 $28,354 $35,466 $23,470
01/31/00 $26,694 $33,831 $21,979
02/29/00 $28,456 $39,891 $22,570
03/31/00 $28,529 $36,869 $23,445
04/30/00 $26,719 $32,494 $22,211
05/31/00 $25,985 $29,984 $21,669
06/30/00 $27,188 $31,255 $22,516
07/31/00 $26,307 $29,241 $21,572
08/31/00 $26,752 $30,149 $21,760
09/30/00 $25,193 $28,746 $20,700
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different accounting
standards than thoseof the U.S., which may adversely affect the value of the
Fund.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS
CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND
RANKINGS WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL CLASS OF SHARES IS MAY 10, 1991.
SINCE LIPPER INTERNATIONAL FUNDS INDEX AND MORGAN STANLEY CAPITAL
INTERNATIONAL-EAFE INDEX PERFORMANCE DATA IS NOT AVAILABLE COINCIDENT WITH
THIS DATE, COMPARATIVE PERFORMANCE IS PRESENTED FROM MAY 31, 1991. INCEPTION
DATES OF THE RETAIL AND ADMIN CLASSES OF SHARES ARE DECEMBER 31, 1996 AND
JULY 31, 2000, RESPECTIVELY. PERFORMANCE FOR THE ADMIN CLASS OF SHARES IS
PRESENTED FROM COMMENCEMENT OF CLASS OPERATIONS ON JULY 31, 2000.
(b) PERFORMANCE SHOWN FOR PERIODS PRIOR TO THE INCEPTION DATE OF THE RETAIL
CLASS (DECEMBER 31, 1996) REPRESENTS THE PERFORMANCE OF THE INSTITUTIONAL
CLASS OF SHARES DURING THE PERIODS SHOWN, ADJUSTED TO REFLECT THE CURRENT
LEVELS OF MANAGEMENT AND 12b-1 FEES PAYABLE BY THE RESPECTIVE CLASS OF
SHARES.
(c) THE LIPPER INTERNATIONAL FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED
INDEX OF TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE INTERNATIONAL FUNDS
INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL
GAINS DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE: LIPPER INC.
(d) MORGAN STANLEY CAPITAL INTERNATIONAL-EAFE INDEX IS AN UNMANAGED INDEX,
WHICH IS A CAPITALIZATION-WEIGHTED AVERAGE OF THE PERFORMANCE OF OVER 1,000
SECURITIES LISTED ON THE STOCK EXCHANGE OF 21 COUNTRIES IN EUROPE, AUSTRALIA
AND THE FAR EAST. THE INDEX RETURNS HAVE NOT BEEN REDUCED FOR ONGOING
MANAGEMENT AND OPERATING EXPENSES APPLICABLE TO MUTUAL FUND INVESTMENTS. IT
IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX.
(e) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL AND ADMIN CLASSES OF SHARES WOULD, DUE TO THE
HIGHER FEES PAID BY THE RETAIL AND ADMIN CLASSES OF SHARES, BE LOWER.
LOOMIS SAYLES EQUITY FUNDS 21
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES MID-CAP VALUE FUND
JOSEPH R. GATZ
[PHOTO OF JOSEPH R. GATZ]
KEY FUND FACTS
OBJECTIVE Long-term capital growth
STRATEGY Invests primarily in stocks with market capitalization falling
within the capitalization range of the Standard & Poor's Mid-Cap 400 Index
FUND INCEPTION DATE 12/31/96
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 1/2/97; Retail: 1/2/97
EXPENSE RATIO Institutional: 1.00%; Retail: 1.25%
TOTAL NET ASSETS (ALL CLASSES) $5.0 Million
PERFORMANCE
For the twelve-month period ended September 30, 2000, the Institutional and
Retail classes of the Mid-Cap Value Fund returned 14.21% and 13.88%,
respectively, compared to the 43.22% return for the Fund's benchmark, the
Standard & Poor's Mid-Cap 400 Index. The average mid-cap value fund, as
measured by Lipper Inc., posted a total return of 24.24% for the same period.
PORTFOLIO REVIEW
Market conditions generally were favorable for mid-cap stocks during the
first half of the fiscal year, as they significantly outperformed large-cap
stocks. But growth stocks, buoyed by a strong technology sector, continued to
strongly outperform value stocks across all capitalization ranges until
March, when strong volatility emerged and the market made a decided rotation
toward value. Concerns about economic growth, or the possible lack of it,
together with reduced fears of rising interest rates led to strong gains for
financial services and "value" utilities, such as the electric and gas
distributors. In addition, energy and most healthcare segments generated
strong performance.
Disappointing stock selection in the technology and utilities sectors
contributed to the Fund's underperformance during the fiscal year. On the
other hand, the Fund enjoyed strong performance from good stock selection in
the financial services and healthcare sectors.
On October 18, 2000, the Trustees voted to liquidate the Fund on or about
December 18, 2000.
/s/ Joseph R. Gatz
Joseph R. Gatz
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
Since
1 Year 3 Years Inception(a)
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES MID-CAP VALUE FUND (INSTITUTIONAL) 14.21% 3.89% 9.90%
LOOMIS SAYLES MID-CAP VALUE FUND (RETAIL) 13.88% 3.57% 9.59%
Lipper Mid-Cap Value Funds Index(b) 20.75% 5.30% 10.65%
S&P Mid-Cap 400 Index(c) 43.22% 18.97% 23.53%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-DECEMBER 31, 1996 TO SEPTEMBER 30, 2000
------------------------------------------------------------------------------------------------------
Lipper Mid-Cap Value Funds Loomis Sayles Mid-Cap S&P Mid-Cap 400
Index Value Fund(d) Index
<S> <C> <C> <C>
12/31/96 $10,000 $10,000 $10,000
1/31/97 $10,185 $10,370 $10,375
2/28/97 $10,184 $10,380 $10,290
3/31/97 $9,813 $10,100 $9,851
4/30/97 $9,948 $10,120 $10,107
5/31/97 $10,727 $10,950 $10,991
6/30/97 $11,053 $11,370 $11,299
7/31/97 $11,745 $12,100 $12,418
8/31/97 $11,824 $12,050 $12,403
9/30/97 $12,516 $12,710 $13,116
10/31/97 $12,081 $12,530 $12,545
11/30/97 $12,140 $12,570 $12,731
12/31/97 $12,266 $12,632 $13,225
1/31/98 $12,108 $12,402 $12,974
2/28/98 $12,951 $13,519 $14,048
3/31/98 $13,491 $14,034 $14,682
4/30/98 $13,647 $14,232 $14,950
5/31/98 $13,116 $13,530 $14,277
6/30/98 $13,063 $13,651 $14,367
7/31/98 $12,326 $12,917 $13,810
8/31/98 $10,263 $10,671 $11,240
9/30/98 $10,556 $11,054 $12,289
10/31/98 $11,189 $11,339 $13,387
11/30/98 $11,602 $12,260 $14,055
12/31/98 $12,055 $12,999 $15,753
1/31/99 $11,974 $12,647 $15,140
2/28/99 $11,351 $11,852 $14,347
3/31/99 $11,577 $12,034 $14,748
4/30/99 $12,470 $13,203 $15,911
5/31/99 $12,576 $13,441 $15,981
6/30/99 $13,062 $13,759 $16,835
7/31/99 $12,823 $13,669 $16,478
8/31/99 $12,387 $13,033 $15,914
9/30/99 $12,104 $12,477 $15,422
10/31/99 $12,220 $13,033 $16,208
11/30/99 $12,659 $13,237 $17,059
12/31/99 $13,494 $13,872 $18,072
1/31/00 $12,788 $12,915 $17,563
2/29/00 $13,144 $13,198 $18,792
3/31/00 $14,048 $14,143 $20,365
4/30/00 $13,827 $13,718 $19,654
5/31/00 $13,726 $13,623 $19,409
6/30/00 $13,758 $13,541 $19,694
7/31/00 $13,854 $13,316 $20,005
8/31/00 $14,743 $14,474 $22,239
9/30/00 $14,615 $14,250 $22,086
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different
accounting standards than those of the U.S., which may adversely affect the
value of the Fund. Small and mid-cap stocks may be more volatile and subject
to wider value fluctuations than larger, more established companies. The
secondary market of mid-cap stocks may be less liquid, or harder to sell,
which could also adversely impact the Fund's value.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS
CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND
RANKINGS WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL AND RETAIL CLASSES OF SHARES IS
DECEMBER 31, 1996.
(b) DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS CHANGED FROM MID-CAP FUNDS TO MID-CAP VALUE FUNDS. THE LIPPER
MID-CAP VALUE FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED INDEX OF TYPICALLY
THE 30 LARGEST MUTUAL FUNDS WITHIN THE MID-CAP VALUE FUNDS INVESTMENT
OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL GAINS
DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE: LIPPER INC.
(c) S&P MID-CAP 400 INDEX IS AN UNMANAGED INDEX CONSISTING OF 400 DOMESTIC
STOCKS CHOSEN FOR MARKET SIZE, LIQUIDITY AND INDUSTRY GROUP REPRESENTATION.
IT IS A MARKET-WEIGHTED INDEX (STOCK PRICE TIMES SHARES OUTSTANDING) WITH
EACH STOCK AFFECTING THE INDEX IN PROPORTION TO ITS VALUE. THE INDEX IS
COMPRISED OF INDUSTRIALS, UTILITIES, FINANCIALS AND TRANSPORTATION, IN SIZE
ORDER. THE INDEX RETURNS HAVE NOT BEEN LOWERED FOR ONGOING MANAGEMENT AND
OPERATING EXPENSES APPLICABLE TO MUTUAL FUND INVESTMENTS. IT IS NOT POSSIBLE
TO INVEST DIRECTLY IN AN INDEX.
(d) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL CLASS OF SHARES WOULD, DUE TO THE HIGHER FEES PAID
BY THE RETAIL CLASS OF SHARES, BE LOWER.
LOOMIS SAYLES EQUITY FUNDS 23
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES RESEARCH FUND
LAURIANN KLOPPENBURG
[PHOTO OF LAURIANN KLOPPENBURG]
KEY FUND FACTS
OBJECTIVE Long-term capital growth
STRATEGY Invests primarily in stocks with large capitalization
FUND INCEPTION DATE 7/31/00
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 7/31/00
EXPENSE RATIO Institutional: 1.15%
TOTAL NET ASSETS $3.5 Million
PERFORMANCE
For the period from July 31, 2000, the Fund's inception date, through
September 30, 2000, the Institutional class of the Research Fund returned
5.40%, compared to the 0.60% return for the Fund's benchmark, the Standard &
Poor's 500 Index. The average large-cap core fund, as measured by Lipper
Inc., posted a total return of 1.01% percent for the same period.
PORTFOLIO REVIEW
The period from the Fund's inception on July 31, 2000, through the end of the
fiscal year on September 30, 2000, was strong for the Fund. Seven of the
Fund's eleven sectors outperformed their respective S&P 500 sector
benchmarks. In particular, the Fund enjoyed strong results from the
technology, finance, energy and consumer cyclical sectors.
Within technology, the Fund had strong returns from several stocks not
included in the S&P 500 Index. A favorable economic and interest rate
backdrop boosted many of the Fund's finance holdings. Higher commodity prices
drove several of the Fund's oil service firms higher. The Fund's consumer
cyclical sector outperformed the S&P's consumer cyclical sector due to strong
gains in the Fund's two largest sector positions.
PORTFOLIO POSITIONING
The portfolio continues to use a fully invested, sector-neutral investment
approach, with all portfolio shifts coming from the industry- and
stock-selection process. Analysts use fundamental security analysis and broad
industry vision to shift portfolio holdings as appropriate.
/s/ Lauriann Kloppenburg
Lauriann Kloppenburg
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS-PERIOD ENDED SEPTEMBER 30, 2000
Since
Inception(a)
---------------------------------------------------------------------------------
<S> <C>
LOOMIS SAYLES RESEARCH FUND (INSTITUTIONAL) 5.40%
Lipper Large-Cap Core Funds Index(b) 1.21%
S&P 500 Index(c) 0.60%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-JULY 31, 2000 TO SEPTEMBER 30, 2000
-----------------------------------------------------------------------------------------------
Lipper Large-Cap Core Fund Index Loomis Sayles Research Fund S&P 500 Index
<S> <C> <C> <C>
7/31/00 $10,000 $10,000 $10,000
8/31/00 $10,690 $10,940 $10,621
9/30/00 $10,121 $10,540 $10,060
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different accounting
standards than thoseof the U.S., which may adversely affect the value of the
Fund.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
DATA REFLECTS CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS,
PERFORMANCE AND RANKINGS WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL CLASS OF SHARES IS JULY 31, 2000.
(b) THE LIPPER LARGE-CAP CORE FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED
INDEX OF TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE LARGE-CAP CORE
FUNDS INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF
CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE: LIPPER INC.
(c) S&P 500 INDEX IS A CAPITALIZATION-WEIGHTED, UNMANAGED TOTAL RETURN INDEX
COMPRISED OF 500 WIDELY HELD COMMON STOCKS, REPRESENTING INDUSTRIAL, UTILITY,
TRANSPORTATION, AND FINANCIAL COMPANIES TRADED ON THE NEW YORK STOCK
EXCHANGE, THE AMERICAN STOCK EXCHANGE AND IN THE OVER-THE-COUNTER MARKET. THE
INDEX RETURNS HAVE NOT BEEN REDUCED FOR ONGOING MANAGEMENT AND OPERATING
EXPENSES APPLICABLE TO MUTUAL FUND INVESTMENTS. IT IS NOT POSSIBLE TO INVEST
DIRECTLY IN AN INDEX.
LOOMIS SAYLES EQUITY FUNDS 25
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES SMALL CAP GROWTH FUND
CHRISTOPHER R. ELY
[PHOTO OF CHRISTOPHER R. ELY]
PHILIP C. FINE
[PHOTO OF PHILIP C. FINE]
DAVID L. SMITH
[PHOTO OF DAVID L. SMITH]
KEY FUND FACTS
OBJECTIVE Long-term growth capital
STRATEGY Invests in stocks with market capitalizations falling within the
capitalization range of the Russell 2000 Index
FUND INCEPTION DATE 12/31/96
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 1/2/97; Retail: 1/2/97;
Admin: 7/31/00
EXPENSE RATIO Institutional: 0.92%; Retail: 1.23%; Admin: 1.50%
TOTAL NET ASSETS (ALL CLASSES) $331.6 Million
PERFORMANCE
For the twelve-month period ended September 30, 2000, the Institutional and
Retail classes of the Small Cap Growth Fund returned 61.17% and 60.60%,
respectively, and from July 31, 2000 through September 30, 2000 the Admin
class returned 12.93%. The Fund's benchmark, the Russell 2000 Growth Index
returned 29.66% for the twelve-month period. The average mid-cap growth fund,
as measured by Lipper Inc., posted a total return of 63.89% for the same
period.
PORTFOLIO REVIEW
Small-cap growth companies, particularly in the technology sector, advanced
strongly through mid-March, when investors finally responded to the Federal
Reserve Board's rate hikes, uncertainty about the direction of the economy
and an overvalued technology sector. The market remained volatile for the
remainder of the fiscal year, with additional pressures from a weak euro,
rising energy prices and a slowing economy.
After the correction hit, we started making some tactical adjustments to the
portfolio. Our first step was to reduce the Fund's exposure to companies that
rely on the Internet for their business--companies that, for the most part,
had high valuations and in our view represented the highest risk in the
portfolio. At the same time, we increased our exposure to growth companies
outside the technology sector to further diversify the Fund. The Fund's
strong performance for the year primarily was due to favorable stock
selection and, to a lesser extent, good sector allocation.
PORTFOLIO POSITIONING
Given this difficult, volatile environment, we increased the Fund's weighting
toward healthcare and retained an overweight position in energy related
issues as we believe that the likelihood of a more sustained period of
earnings growth is greater today than at any time in recent memory, due to
high energy prices and depleted domestic reserves. We also have retained a
significant exposure to technology. Despite some near-term macro-economic
concerns and well-publicized problems at major companies, we believe there
are significant opportunities for growth, particularly for the smaller and
nimbler companies focused on the leading edge of technology.
/s/ Christopher R. Ely /s/ Philip C. Fine /s/ David L. Smith
Christopher R. Ely Philip C. Fine David L. Smith
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
Since
1 Year 3 Years Inception(a)
--------------------------------------------------------------------------------------
<S> <C> <S> <C>
LOOMIS SAYLES SMALL CAP GROWTH FUND (INSTITUTIONAL) 61.17% 31.39% 32.17%
LOOMIS SAYLES SMALL CAP GROWTH FUND (RETAIL) 60.60% 31.01% 31.84%
LOOMIS SAYLES SMALL CAP GROWTH FUND (ADMIN) NA NA 12.93%
Lipper Mid-Cap Growth Funds Index(b) 59.32% 26.09% 25.56%
Russell 2000 Growth Index(c) 29.66% 8.93% 13.17%
Russell 2000 Index(c) 23.39% 5.96% 11.54%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-DECEMBER 31, 1996 TO SEPTEMBER 30, 2000
-----------------------------------------------------------------------------------------
Loomis Sayles Small Cap Lipper Mid-Cap Russell 2000 Russell 2000
Growth Fund (d) Growth Funds Index Growth Index Index
<S> <C> <C> <C> <C>
12/31/96 $10,000 $10,000 $10,000 $10,000
1/31/97 $10,260 $10,256 $10,250 $10,200
2/28/97 $9,500 $9,574 $9,631 $9,952
3/31/97 $8,510 $8,846 $8,951 $9,483
4/30/97 $8,350 $8,769 $8,848 $9,509
5/31/97 $9,710 $9,912 $10,177 $10,567
6/30/97 $10,280 $10,329 $10,523 $11,020
7/31/97 $11,110 $10,960 $11,062 $11,533
8/31/97 $11,300 $10,929 $11,394 $11,797
9/30/97 $12,550 $11,712 $12,303 $12,660
10/31/97 $11,670 $11,056 $11,564 $12,104
11/30/97 $11,540 $10,879 $11,288 $12,026
12/31/97 $11,943 $11,134 $11,295 $12,236
1/31/98 $11,552 $10,923 $11,144 $12,043
2/28/98 $12,808 $11,851 $12,128 $12,934
3/31/98 $13,388 $12,465 $12,636 $13,467
4/30/98 $13,209 $12,519 $12,714 $13,541
5/31/98 $12,101 $11,789 $11,790 $12,812
6/30/98 $13,282 $12,332 $11,911 $12,839
7/31/98 $11,974 $11,511 $10,916 $11,800
8/31/98 $9,273 $9,029 $8,396 $9,508
9/30/98 $10,371 $9,971 $9,247 $10,253
10/31/98 $10,782 $10,338 $9,730 $10,671
11/30/98 $12,132 $11,123 $10,485 $11,230
12/31/98 $14,179 $12,558 $11,433 $11,925
1/31/99 $14,591 $13,181 $11,948 $12,083
2/28/99 $13,673 $12,158 $10,855 $11,104
3/31/99 $14,717 $13,024 $11,241 $11,278
4/30/99 $14,854 $13,559 $12,234 $12,288
5/31/99 $14,580 $13,502 $12,253 $12,468
6/30/99 $16,764 $14,590 $12,899 $13,032
7/31/99 $16,268 $14,391 $12,500 $12,674
8/31/99 $16,743 $14,318 $12,033 $12,205
9/30/99 $17,661 $14,736 $12,265 $12,208
10/31/99 $19,929 $16,039 $12,579 $12,257
11/30/99 $22,039 $18,050 $13,909 $12,989
12/31/99 $27,198 $21,816 $16,360 $14,459
1/31/00 $26,702 $21,441 $16,208 $14,227
2/29/00 $36,355 $26,814 $19,979 $16,577
3/31/00 $31,544 $24,927 $17,879 $15,484
4/30/00 $29,012 $21,639 $16,074 $14,552
5/31/00 $25,088 $19,693 $14,666 $13,704
6/30/00 $28,063 $22,754 $16,561 $14,898
7/31/00 $25,183 $21,810 $15,141 $14,419
8/31/00 $29,403 $24,662 $16,734 $15,519
9/30/00 $28,464 $23,477 $15,903 $15,063
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different
accounting standards than those of the U.S., which may adversely affect the
value of the Fund.
Small and mid-cap stocks may be more volatile and subject to wider value
fluctuations than larger, more established companies. The secondary market of
small and mid-cap stocks may be less liquid, or harder to sell, which could
also adversely impact the Fund's value.
A portion of the Fund's returns were attributable to investment in IPOs. No
assurance can be given that the Fund will continue to be able to invest in
IPOs to the same extent as it currently does and there is no guarantee that
these high risk investments will have the same effect on the Fund's
performance if they are made in the future.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE
DATA REFLECTS CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS,
PERFORMANCE AND RANKINGS WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL AND RETAIL CLASSES OF SHARES IS
DECEMBER 31, 1996. INCEPTION DATE OF THE ADMIN CLASS OF SHARES IS JULY 31,
2000. PERFORMANCE FOR THE ADMIN CLASS OF SHARES IS PRESENTED FROM
COMMENCEMENT OF CLASS OPERATIONS ON JULY 31, 2000.
(b) DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS BEEN CHANGED FROM SMALL-CAP FUNDS TO MID-CAP GROWTH FUNDS. THE
LIPPER MID-CAP GROWTH FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED INDEX OF
TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE MID-CAP GROWTH FUNDS
INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL
GAINS DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE: LIPPER, INC.
(c) THE FUND CHANGED ITS BENCHMARK INDEX DURING THE FISCAL YEAR ENDED
SEPTEMBER 30, 2000 FROM THE RUSSELL 2000 INDEX TO THE RUSSELL 2000 GROWTH
INDEX, WHICH IS AN UNMANAGED INDEX COMPRISED OF THOSE RUSSELL 2000 SECURITIES
WITH A GREATER THAN AVERAGE GROWTH ORIENTATION. THE RUSSELL 2000 GROWTH INDEX
BETTER REPRESENTS THE INVESTMENT STRATEGY OF THE FUND. THE INDEX RETURNS HAVE
NOT BEEN LOWERED FOR ONGOING MANAGEMENT AND OPERATING EXPENSES APPLICABLE TO
MUTUAL FUND INVESTMENTS. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX.
(d) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL AND ADMIN CLASSES OF SHARES WOULD, DUE TO THE
HIGHER FEES PAID BY THE RETAIL AND ADMIN CLASSES OF SHARES, BE LOWER.
LOOMIS SAYLES EQUITY FUNDS 27
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES SMALL CAP VALUE FUND
JOSEPH R. GATZ
[PHOTO OF JOSEPH R. GATZ]
DANIEL G. THELEN
[PHOTO OF DANIEL G. THELEN]
KEY FUND FACTS
OBJECTIVE Long-term capital growth
STRATEGY Invests primarily in stocks with market capitalization falling
within the capitalization range of the Russell 2000 Index
FUND INCEPTION DATE 5/13/91
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 5/13/91; Retail: 1/2/97;
Admin: 1/2/98
EXPENSE RATIO Institutional: 0.93%; Retail: 1.17%; Admin: 1.50%
TOTAL NET ASSETS (ALL CLASSES) $319.0 Million
PERFORMANCE
For the twelve-month period ended September 30, 2000, the Institutional,
Retail and Admin classes of the Small Cap Value Fund returned 20.66%, 20.42%
and 20.10%, respectively, compared to the 23.39% return for the Fund's
benchmark, the Russell 2000 Index. The average small-cap value fund, as
measured by Lipper Inc., posted a total return of 20.66% for the same period.
PORTFOLIO REVIEW
In the first half of the fiscal year, growth-oriented issues, notably in the
technology and biotechnology sectors, outperformed the broader market by a
wide margin. But in March 2000, sentiment shifted dramatically, and for the
first time in months, value returns significantly exceeded growth across all
capitalization ranges. This continued into the fiscal year's third quarter,
which was dominated by concerns regarding the Federal Reserve Board's
long-term interest rate policy and by a growing realization that many of the
industry groups and stocks that make up the "new economy" may never achieve
profitability, let alone live up to original expectations.
The Fund's strong performance over the fiscal year was due primarily to the
rebound in value-style investing and good stock selection. Although this was
particularly evident in the consumer discretionary and financial services
sector, contribution from stock selection was a positive factor in nine of
the eleven Russell economic sectors. With regard to sector selection, an
underweight position in technology and an overweight position in financial
services helped performance.
PORTFOLIO POSITIONING
While the length and depth of what is now only a modest slowdown remain in
doubt, we already have seen reduced earnings expectations and pressure on the
stock prices of economically sensitive stocks and industry groups. Against
this backdrop, we have taken a modestly defensive posture in our stock
selection, but have not changed our investment strategy or selection process.
Our focus is on identifying companies with a high degree of earnings
predictability and visibility. Specifically, we marginally reduced the Fund's
technology weighting and increased the Fund's financial exposure.
/s/ Joseph R. Gatz /s/ Daniel G. Thelen
Joseph R. Gatz Daniel G. Thelen
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
Since
1 Year 3 Years 5 Years Inception(a)
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES SMALL CAP VALUE FUND (INSTITUTIONAL) 20.66% 3.59% 14.15% 16.46%
LOOMIS SAYLES SMALL CAP VALUE FUND (RETAIL)(b) 20.42% 3.29% 13.91% 16.33%
LOOMIS SAYLES SMALL CAP VALUE FUND (ADMIN) 20.10% NA NA 4.36%
Lipper Small-Cap Value Funds Index(c) 16.86% 1.61% 10.54% 12.45%
Russell 2000 Index(d) 23.39% 5.96% 12.38% 13.85%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-MAY 31, 1991 TO SEPTEMBER 30, 2000
------------------------------------------------------------------------------------------------
Lipper Small-Cap Loomis Sayles
Value Funds Index Small Cap Value Fund(e) Russell 2000 Index
<S> <C> <C> <C>
5/31/91 $10,000 $10,000 $10,000
06/30/91 $9,651 $9,648 $9,417
07/31/91 $9,897 $10,411 $9,748
08/31/91 $10,133 $11,204 $10,109
09/30/91 $10,256 $11,213 $10,188
10/31/91 $10,547 $11,438 $10,457
11/30/91 $10,151 $11,155 $9,973
12/31/91 $10,997 $12,767 $10,772
01/31/92 $11,677 $14,065 $11,645
02/29/92 $12,102 $14,852 $11,985
03/31/92 $11,896 $14,055 $11,579
04/30/92 $11,680 $13,339 $11,173
05/31/92 $11,812 $13,360 $11,322
06/30/92 $11,400 $12,194 $10,786
07/31/92 $11,806 $12,532 $11,162
08/31/92 $11,528 $12,123 $10,847
09/30/92 $11,666 $12,256 $11,097
10/31/92 $11,787 $12,644 $11,450
11/30/92 $12,569 $13,850 $12,326
12/31/92 $12,943 $14,441 $12,755
01/31/93 $13,384 $15,103 $13,187
02/28/93 $13,285 $14,755 $12,882
03/31/93 $13,624 $15,372 $13,300
04/30/93 $13,297 $14,979 $12,935
05/31/93 $13,638 $15,618 $13,508
06/30/93 $13,633 $15,697 $13,592
07/31/93 $13,758 $16,078 $13,780
08/31/93 $14,187 $16,942 $14,375
09/30/93 $14,519 $17,715 $14,781
10/31/93 $14,921 $18,108 $15,161
11/30/93 $14,637 $17,502 $14,662
12/31/93 $15,023 $18,005 $15,163
01/31/94 $15,580 $18,387 $15,639
02/28/94 $15,561 $18,107 $15,582
03/31/94 $15,041 $17,062 $14,759
04/30/94 $15,098 $16,871 $14,847
05/31/94 $15,158 $16,616 $14,680
06/30/94 $14,828 $16,221 $14,182
07/31/94 $14,944 $16,310 $14,415
08/31/94 $15,488 $17,075 $15,218
09/30/94 $15,443 $17,062 $15,167
10/31/94 $15,423 $16,948 $15,107
11/30/94 $14,780 $16,272 $14,497
12/31/94 $14,917 $16,510 $14,887
01/31/95 $15,081 $16,561 $14,699
02/28/95 $15,534 $17,203 $15,310
03/31/95 $15,645 $17,614 $15,574
04/30/95 $16,017 $17,666 $15,920
05/31/95 $16,324 $18,026 $16,194
06/30/95 $16,857 $18,514 $17,034
07/31/95 $17,590 $19,747 $18,015
08/31/95 $17,814 $20,698 $18,388
09/30/95 $18,119 $21,083 $18,716
10/31/95 $17,354 $19,991 $17,879
11/30/95 $17,892 $20,955 $18,631
12/31/95 $18,110 $21,822 $19,122
01/31/96 $18,347 $21,850 $19,102
02/29/96 $18,711 $22,946 $19,697
03/31/96 $19,075 $23,473 $20,098
04/30/96 $19,731 $24,868 $21,173
05/31/96 $20,382 $25,893 $22,007
06/30/96 $19,984 $25,281 $21,103
07/31/96 $18,859 $23,857 $19,260
08/31/96 $19,650 $25,053 $20,378
09/30/96 $20,167 $25,899 $21,175
10/31/96 $20,309 $26,278 $20,848
11/30/96 $21,151 $27,535 $21,707
12/31/96 $21,772 $28,445 $22,276
01/31/97 $22,243 $28,952 $22,721
02/28/97 $22,266 $28,576 $22,171
03/31/97 $21,735 $27,954 $21,124
04/30/97 $21,727 $27,692 $21,184
05/31/97 $23,681 $30,702 $23,540
06/30/97 $24,901 $32,141 $24,549
07/31/97 $26,181 $33,982 $25,691
08/31/97 $26,755 $34,693 $26,279
09/30/97 $28,498 $36,760 $28,203
10/31/97 $27,703 $35,603 $26,964
11/30/97 $27,515 $35,471 $26,789
12/31/97 $28,044 $35,837 $27,258
01/31/98 $27,538 $35,048 $26,828
02/28/98 $29,276 $37,531 $28,811
3/31/98 $30,563 $39,206 $30,000
04/30/98 $30,865 $39,032 $30,166
05/31/98 $29,769 $37,358 $28,541
06/30/98 $29,218 $36,877 $28,601
07/31/98 $27,267 $34,490 $26,286
08/31/98 $22,669 $28,581 $21,181
09/30/98 $23,491 $30,025 $22,839
10/31/98 $24,347 $31,603 $23,770
11/30/98 $25,428 $33,393 $25,016
12/31/98 $26,162 $35,451 $26,564
01/31/99 $25,462 $33,789 $26,917
02/28/99 $23,696 $31,405 $24,737
03/31/99 $23,406 $31,425 $25,123
04/30/99 $25,560 $33,985 $27,374
05/31/99 $26,471 $34,669 $27,774
06/30/99 $27,687 $36,271 $29,030
07/31/99 $27,382 $35,822 $28,233
08/31/99 $26,255 $34,630 $27,189
09/30/99 $25,586 $33,868 $27,195
10/31/99 $24,889 $33,535 $27,305
11/30/99 $25,520 $34,232 $28,935
12/31/99 $26,656 $35,582 $32,210
01/31/00 $25,641 $34,261 $31,693
02/28/00 $26,387 $36,683 $36,927
03/31/00 $27,616 $38,764 $34,492
04/30/00 $27,440 $38,844 $32,416
05/31/00 $27,207 $37,183 $30,527
06/30/00 $27,978 $38,404 $33,188
07/31/00 $28,234 $39,044 $32,120
08/31/00 $29,984 $41,486 $34,571
09/30/00 $29,901 $40,865 $33,555
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different
accounting standards than those of the U.S., which may adversely affect the
value of the Fund.
Small and mid-cap stocks may be more volatile and subject to wider value
fluctuations than larger, more established companies. The secondary market of
small and mid-cap stocks may be less liquid, or harder to sell, which could
also adversely impact the Fund's value.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS
CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND
RANKINGS WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL CLASS OF SHARES IS MAY 13, 1991.
SINCE LIPPER SMALL-CAP VALUE FUNDS INDEX AND RUSSELL 2000 INDEX PERFORMANCE
DATA IS NOT AVAILABLE COINCIDENT WITH THIS DATE, COMPARATIVE PERFORMANCE IS
PRESENTED FROM MAY 31, 1991. INCEPTION DATES OF THE RETAIL AND ADMIN CLASSES
OF SHARES ARE DECEMBER 31, 1996 AND JANUARY 2, 1998, RESPECTIVELY.
PERFORMANCE FOR THE ADMIN CLASS OF SHARES IS PRESENTED FROM COMMENCEMENT OF
CLASS OPERATIONS ON JANUARY 2, 1998.
(b) PERFORMANCE SHOWN FOR PERIODS PRIOR TO THE INCEPTION DATE OF THE RETAIL
CLASS (DECEMBER 31, 1996) REPRESENTS THE PERFORMANCE OF THE INSTITUTIONAL
CLASS OF SHARES DURING THE PERIODS SHOWN, ADJUSTED TO REFLECT THE CURRENT
LEVELS OF MANAGEMENT AND 12b-1 FEES PAYABLE BY THE RESPECTIVE CLASS OF
SHARES.
(c) DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS CHANGED FROM SMALL-CAP FUNDS TO SMALL-CAP VALUE FUNDS. THE
LIPPER SMALL-CAP VALUE FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED INDEX OF
TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE SMALL-CAP VALUE FUNDS
INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL
GAINS DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE: LIPPER INC.
(d) RUSSELL 2000 INDEX IS AN UNMANAGED INDEX COMPRISED OF THE 2,000 SMALLEST
COMPANIES IN THE RUSSELL 3000 INDEX (A BROAD MARKET INDEX), RESPRESENTING
APPROXIMATELY 8% OF THE RUSSELL 3000 TOTAL MARKET CAPITALIZATION. THE INDEX
RETURNS HAVE NOT BEEN REDUCED FOR ONGOING MANAGEMENT AND OPERATING EXPENSES
APPLICABLE TO MUTUAL FUND INVESTMENTS. IT IS NOT POSSIBLE TO INVEST DIRECTLY
IN AN INDEX.
(e) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL AND ADMIN CLASSES OF SHARES WOULD, DUE TO THE
HIGHER FEES PAID BY THE RETAIL AND ADMIN CLASSES OF SHARES, BE LOWER.
LOOMIS SAYLES EQUITY FUNDS 29
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES WORLDWIDE FUND
DANIEL J. FUSS
[PHOTO OF DANIEL J. FUSS]
QUENTIN P. FAULKNER
[PHOTO OF QUENTIN P. FAULKNER]
DAVID ROLLEY
[PHOTO OF DAVID ROLLEY]
ESWAR MENON
[PHOTO OF ESWAR MENON]
ALEXANDER MUROMCEW
[PHOTO OF ALEXANDER MUROMCEW]
JOHN TRIBOLET
[PHOTO OF JOHN TRIBOLET]
KEY FUND FACTS
OBJECTIVE High total investment return
STRATEGY Invests in U.S. and foreign equity and debt securities
FUND INCEPTION DATE 5/1/96
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 5/1/96;
Retail: 1/2/97
EXPENSE RATIO Institutional: 1.00%; Retail: 1.25%
TOTAL NET ASSETS (ALL CLASSES) $10.6 Million
PERFORMANCE
For the twelve-month period ended September 30, 2000, the Institutional and
Retail classes of the Worldwide Fund returned 46.53% and 46.20%,
respectively, compared to the 6.74% return for the Lehman Brothers
Government/Credit Bond Index and the 13.28% return for the Standard & Poor's
500 Index. The average global flexible portfolio fund, as measured by Lipper
Inc., posted a total return of 13.03% for the same period.
PORTFOLIO REVIEW
After a strong showing in 1999 and early 2000, international markets fell in
sympathy with the decline of the U.S. markets, which fell due to concerns
over the direction of U.S. interest rates and the potential impact on the
U.S. economy, concerns over high valuations, particularly in the technology
sector, and concerns over future earnings growth. The sharpest declines were
in the technology sector, which was the best-performing sector early in 2000
and in 1999.
In addition, higher oil prices remained a concern on the inflation front, and
the Japanese market was weak due to political concerns and the pace of
restructuring taking place in that market. In Europe, the markets were
affected by the continued weakness of the euro. On a more positive note,
Russia and Mexico showed signs of political freedom and the need for economic
reforms.
The Fund's attractive performance for the fiscal year primarily was due to
strong returns from the portfolio's foreign equity holdings.
PORTFOLIO POSITIONING
The equity component on September 30, 2000 was 49% of the portfolio, but the
commitment to foreign securities remained dominant. With 19% in foreign bonds
and 30% in foreign equities, a total of 49% is committed to foreign
securities. We are comfortable with this commitment because foreign economies
are only beginning what we believe to be a long period of growth, whereas the
U.S. economy is showing signs of strain. We also believe the U.S. dollar has
become fundamentally overvalued.
/s/ Dan J.Fuss /s/ Quentin P. Faulkner /s/ David Rolley
Daniel J.Fuss Quentin P. Faulkner David Rolley
/s/ Eswar Menon /s/ Alexander Muromcew /s/ John Tribolet
Eswar Menon Alexander Muromcew John Tribolet
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
Since
1 Year 3 Years Inception(a)
-----------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES WORLDWIDE FUND (INSTITUTIONAL) 46.53% 15.45% 15.48%
LOOMIS SAYLES WORLDWIDE FUND (RETAIL) 46.20% 15.15% 15.17%
Lipper Global Flexible Portfolio Funds Index(b) 13.29% 9.37% 11.84%
S&P 500 Index(c) 13.28% 16.44% 21.13%
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-MAY 31, 1996 TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------------
Lipper Global Flexible Portfolio Funds Loomis Sayles Worldwide Fund(d) S&P 500
Index Index
<S> <C> <C> <C>
5/31/96 $10,000 $10,000 $10,000
6/30/96 $10,041 $10,030 $10,038
7/31/96 $9,796 $9,693 $9,595
8/31/96 $9,941 $9,931 $9,798
9/30/96 $10,220 $10,248 $10,349
10/31/96 $10,346 $10,446 $10,634
11/30/96 $10,786 $10,951 $11,437
12/31/96 $10,802 $10,826 $11,210
1/31/97 $11,002 $10,826 $11,910
2/28/97 $11,065 $10,847 $12,004
3/31/97 $10,884 $10,826 $11,512
4/30/97 $10,991 $10,928 $12,198
5/31/97 $11,453 $11,244 $12,944
6/30/97 $11,774 $11,376 $13,519
7/31/97 $12,258 $11,985 $14,595
8/31/97 $11,906 $11,698 $13,778
9/30/97 $12,413 $12,160 $14,532
10/31/97 $11,973 $11,461 $14,047
11/30/97 $12,011 $11,472 $14,697
12/31/97 $12,114 $11,207 $14,949
1/31/98 $12,143 $11,548 $15,114
2/28/98 $12,691 $12,252 $16,204
3/31/98 $13,117 $12,366 $17,033
4/30/98 $13,232 $12,207 $17,207
5/31/98 $13,119 $11,684 $16,912
6/30/98 $13,109 $11,195 $17,598
7/31/98 $12,980 $11,195 $17,412
8/31/98 $11,544 $10,002 $14,897
9/30/98 $11,729 $9,991 $15,852
10/31/98 $12,341 $10,707 $17,139
11/30/98 $12,894 $11,343 $18,178
12/31/98 $13,203 $11,541 $19,224
1/31/99 $13,360 $11,702 $20,028
2/28/99 $13,035 $11,479 $19,406
3/31/99 $13,459 $11,839 $20,182
4/30/99 $14,182 $12,336 $20,963
5/31/99 $13,956 $12,398 $20,468
6/30/99 $14,473 $12,684 $21,606
7/31/99 $14,464 $12,920 $20,929
8/31/99 $14,413 $12,870 $20,826
9/30/99 $14,334 $12,771 $20,255
10/31/99 $14,625 $13,267 $21,536
11/30/99 $15,138 $15,342 $21,979
12/31/99 $16,156 $18,521 $23,268
1/31/00 $15,826 $17,890 $22,099
2/29/00 $16,706 $20,442 $21,681
3/31/00 $16,625 $20,133 $23,801
4/30/00 $16,069 $19,219 $23,085
5/31/00 $15,816 $18,763 $22,612
6/30/00 $16,383 $19,340 $23,169
7/31/00 $16,181 $18,709 $22,807
8/31/00 $16,733 $19,233 $24,224
9/30/00 $16,239 $18,709 $22,945
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different
accounting standards than those of the U.S., which may adversely affect the
value of the Fund. A portion of the Fund's returns were attributable to
investments in initial public offerings (IPOs). No assurance can be given
that the Fund will continue to be able to invest in IPOs to the same extent
as it currently does and there is no guarantee that these high risk
investments will have the same effect on the Fund's performance if they are
made in the future.
A portion of the Fund's returns were attributable to investments in IPOs. No
assurance can be given that the Fund will continue to be able to invest in
IPOs to the same extent as it currently does and there is no guarantee that
that these high risk investments will have the same effect on the Fund's
performance if they are made in the future.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY
BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS
CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND
RANKINGS WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL CLASS OF SHARES IS MAY 1, 1996. SINCE
LIPPER GLOBAL FLEXIBLE PORTFOLIO FUNDS INDEX AND S&P 500 INDEX PERFORMANCE
DATA IS NOT AVAILABLE COINCIDENT WITH THIS DATE, COMPARATIVE PERFORMANCE IS
PRESENTED FROM MAY 31, 1996. INCEPTION DATE OF THE RETAIL CLASS OF SHARES IS
DECEMBER 31, 1996. PERFORMANCE SHOWN FOR PERIODS PRIOR TO THE INCEPTION DATE
OF THE RETAIL CLASS (DECEMBER 31, 1996) REPRESENT THE PERFORMANCE OF THE
INSTITUTIONAL CLASS OF SHARES DURING THE PERIOD SHOWN, ADJUSTED TO REFLECT
THE CURRENT FEES PAYABLE BY THE RESPECTIVE CLASS OF SHARES (I.E. A .25% 12b-1
FEE).
(b) THE LIPPER GLOBAL FLEXIBLE PORTFOLIO FUNDS INDEX IS AN EQUALLY WEIGHTED
UNMANAGED INDEX OF TYPICALLY THE 10 LARGEST MUTUAL FUNDS WITHIN THE GLOBAL
FLEXIBLE PORTFOLIO FUNDS INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE
REINVESTMENT OF CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS. SOURCE:
LIPPER INC.
(c) S&P 500 INDEX IS A CAPITALIZATION-WEIGHTED, UNMANAGED TOTAL RETURN INDEX
COMPRISED OF 500 WIDELY HELD COMMON STOCKS, REPRESENTING INDUSTRIAL, UTILITY,
TRANSPORTATION, AND FINANCIAL COMPANIES TRADED ON THE NEW YORK STOCK
EXCHANGE, THE AMERICAN STOCK EXCHANGE AND IN THE OVER-THE-COUNTER MARKET. THE
INDEX RETURNS HAVE NOT BEEN REDUCED FOR ONGOING MANAGEMENT AND OPERATING
EXPENSES APPLICABLE TO MUTUAL FUND INVESTMENTS. IT IS NOT POSSIBLE TO INVEST
DIRECTLY IN AN INDEX.
(d) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL CLASS OF SHARES WOULD, DUE TO THE HIGHER FEES PAID
BY THE RETAIL CLASS OF SHARES, BE LOWER.
LOOMIS SAYLES EQUITY FUNDS 31
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES AGGRESSIVE GROWTH FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-97.8% OF NET ASSETS
BANKS/SAVINGS & LOANS--5.2%
Capital One Financial Corp. 24,900 $ 1,744,556
Golden West Financial Corp. 76,200 4,086,225
TCF Financial Corp. 84,200 3,168,025
------------
8,998,806
------------
BROADCASTING--2.3%
Gemstar-TV Guide International, Inc. * 27,500 2,397,656
Sirius Satellite Radio, Inc. * 30,400 1,607,400
------------
4,005,056
------------
BUSINESS SERVICES--7.0%
Ariba, Inc. * 10,600 1,518,616
Art Technology Group, Inc. * 32,600 3,088,850
Commerce One, Inc. * 26,100 2,048,850
Critical Path, Inc. * 29,500 1,792,125
HomeStore.com, Inc. * 45,700 2,136,475
TMP Worldwide, Inc. * 18,300 1,473,150
------------
12,058,066
------------
COMMUNICATIONS EQUIPMENT--17.6%
Avanex Corp. * 9,800 1,055,338
Brocade Communications Systems, Inc. * 16,200 3,823,200
Ciena Corp. * 28,400 3,487,875
Cosine Communications, Inc. * 14,100 783,431
Extreme Networks, Inc. * 38,500 4,408,250
Finisar Corp. * 49,700 2,404,237
Inrange Technologies Corp. Class B * 31,700 1,680,100
MMC Networks, Inc. * 6,400 809,600
Newport Corp. 17,700 2,819,002
Phone.com, Inc. * 16,500 1,874,812
QLogic Corp. * 26,400 2,323,200
Research In Motion Ltd. * 18,300 1,803,694
SDL, Inc. * 7,400 2,288,912
StorageNetworks, Inc. * 9,700 991,219
------------
30,552,870
------------
COMPUTER HARDWARE--1.7%
Network Appliance, Inc. * 22,500 2,865,938
------------
COMPUTER SOFTWARE--12.5%
CacheFlow, Inc. * 16,200 2,316,600
i2 Technologies, Inc. * 15,700 2,936,881
Macrovision Corp. * 41,300 3,345,300
Mercury Interactive Corp. * 28,300 4,436,025
Micromuse, Inc. * 8,700 1,748,156
Rational Software Corp. * 45,600 3,163,500
RealNetworks, Inc. * 30,100 1,196,475
TIBCO Software, Inc. * 30,200 2,550,013
------------
21,692,950
------------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES AGGRESSIVE GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
EDUCATION--2.1%
Apollo Group, Inc. Class A * 50,600 $ 2,017,675
DeVry, Inc. * 44,900 1,689,363
------------
3,707,038
------------
ELECTRONIC COMPONENTS--1.9%
Flextronics International Ltd. * 39,500 3,243,938
------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--12.4%
Altera Corp. * 31,200 1,489,800
Applied Micro Circuits Corp. * 14,900 3,085,231
Bookham Technology Plc ADR * 13,600 583,100
Cree Research, Inc. * 19,400 2,255,250
GlobeSpan, Inc. * 15,900 1,939,800
Jabil Circuit, Inc. * 37,000 2,099,750
Micrel, Inc. * 34,500 2,311,500
NVIDIA Corp. * 35,700 2,922,938
PMC Sierra, Inc. * 9,000 1,937,250
TranSwitch Corp. * 43,500 2,773,125
------------
21,397,744
------------
HEALTHCARE--BIOTECHNOLOGY--9.9%
Abgenix, Inc. * 28,600 2,311,237
Celgene Corp. * 25,200 1,499,400
COR Therapeutics, Inc. * 34,800 2,168,475
Human Genome Sciences, Inc. * 10,300 1,783,188
IDEC Pharmaceuticals Corp. * 12,700 2,227,064
ImClone Systems, Inc. * 14,000 1,638,875
Lexicon Genetics, Inc. * 33,200 1,049,950
MedImmune, Inc. * 32,000 2,472,000
Millennium Pharmaceuticals, Inc. * 13,100 1,913,419
------------
17,063,608
------------
HEALTHCARE--DRUGS--5.7%
ALZA Corp. * 36,700 3,174,550
Andrx Group * 24,000 2,241,000
Biovail Corp. * 36,350 2,960,253
Forest Laboratories, Inc. * 13,700 1,571,219
------------
9,947,022
------------
HEALTHCARE--MEDICAL TECHNOLOGY--3.1%
MiniMed, Inc. * 43,500 3,887,812
Quest Diagnostics, Inc. * 13,400 1,537,650
------------
5,425,462
------------
HEALTHCARE--PRODUCTS--0.9%
Waters Corp. * 16,600 1,477,400
------------
INSURANCE--1.5%
AFLAC, Inc. 40,100 2,568,906
------------
LEISURE--1.7%
Harley-Davidson, Inc. 61,800 2,958,675
------------
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 33
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES AGGRESSIVE GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
OIL & GAS DRILLING EQUIPMENT--4.8%
BJ Services Co. * 32,000 $ 1,956,000
ENSCO International, Inc. 62,500 2,390,625
Nabors Industries, Inc. * 43,300 2,268,920
Noble Drilling Corp. * 35,200 1,768,800
------------
8,384,345
------------
RETAIL--SPECIALTY--2.0%
CDW Computer Centers, Inc. * 27,700 1,911,300
Tiffany & Co. 40,000 1,542,500
------------
3,453,800
------------
SECURITIES--1.7%
Lehman Brothers Holdings, Inc. 20,300 2,999,325
------------
UTILITIES--3.8%
Calpine Corp. * 43,500 4,540,312
NRG Energy, Inc. * 53,900 1,967,350
------------
6,507,662
------------
TOTAL COMMON STOCKS
(Identified Cost $135,546,040) 169,308,611
-------------
<CAPTION>
FACE
AMOUNT
--------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-10.5% OF NET ASSETS
Repurchase Agreement with State Street Bank and
Trust Co., dated 9/29/00 at 5.250% to be repurchased
at $18,210,964 on 10/02/00 collateralized by
$18,455,000 U.S. Treasury Note, 6.500% due 8/31/01
with a value of $18,570,344, $18,203,000 18,203,000
-------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $18,203,000) 18,203,000
-------------
TOTAL INVESTMENTS--108.3%
(IDENTIFIED COST $153,749,040) @ 187,511,611
Liabilities, Less Cash and Other Assets--(8.3%) (14,323,943)
-------------
NET ASSETS--100% $173,187,668
=============
</TABLE>
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments based
on cost of $153,758,628 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there is
an excess of value over tax cost and aggregate gross unrealized depreciation
for all securities in which there is an excess of tax cost over value were
$35,319,332 and $1,566,349, respectively, resulting in net unrealized
appreciation of $33,752,983.
Key to Abbreviations:
ADR: American Depositary Receipt
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES CORE VALUE FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-99.2% OF NET ASSETS
AEROSPACE/DEFENSE--2.8%
General Dynamics Corp. 10,600 $ 665,812
Litton Industries, Inc. * 10,000 446,875
------------
1,112,687
------------
BANKS/SAVINGS & LOANS--3.8%
Chase Manhattan Corp. 12,586 581,316
PNC Financial Services Group. 14,000 910,000
------------
1,491,316
------------
BEVERAGES--2.0%
Anheuser-Busch Cos., Inc. 18,000 761,625
------------
CHEMICALS--MAJOR--1.1%
Praxair, Inc. 11,500 429,813
------------
COMMUNICATIONS EQUIPMENT--1.0%
Motorola, Inc. 14,500 409,625
------------
COMPUTER HARDWARE--3.6%
Apple Computer, Inc. * 9,800 252,350
Compaq Computer Corp. 7,800 215,124
Hewlett-Packard Co. 3,600 349,200
International Business Machines Corp. 3,200 360,000
Lexmark International Group, Inc. Class A * 5,700 213,750
------------
1,390,424
------------
COMPUTER SOFTWARE--1.1%
Computer Associates International, Inc. 8,200 206,538
Computer Sciences Corp. * 3,100 230,175
------------
436,713
------------
DATA PROCESSING SERVICES--1.4%
First Data Corp. 13,500 527,344
------------
ELECTRICAL EQUIPMENT--1.5%
Emerson Electric Co. 8,500 569,500
------------
ELECTRONIC COMPONENTS--1.5%
Koninklijke (Royal) Philips Electronics NV ADR * 14,065 597,762
------------
ENTERTAINMENT--1.3%
Walt Disney Co. 13,100 501,075
------------
FINANCIAL SERVICES--8.8%
Associates First Capital Corp. 13,800 524,400
Citigroup, Inc. 20,933 1,131,690
FleetBoston Financial Corp. 16,000 624,000
Household International, Inc. 11,400 645,525
Wells Fargo & Co. 11,000 505,313
------------
3,430,928
------------
FOREST & PAPER PRODUCTS--1.2%
Willamette Industries, Inc. 16,700 467,600
------------
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 35
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES CORE VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
GAMING--1.0%
Harrah's Entertainment, Inc. * 14,500 $ 398,750
------------
GOVERNMENT AGENCIES--2.7%
Federal National Mortgage Association 14,800 1,058,200
------------
HEALTHCARE--DRUGS--4.5%
Bristol Myers Squibb Co. 11,000 628,375
Merck & Co., Inc. 8,100 602,944
Pharmacia Corp. 9,000 541,687
------------
1,773,006
------------
HEALTHCARE--PRODUCTS--1.4%
Baxter International, Inc. 7,000 558,688
------------
HEALTHCARE--SERVICES--2.2%
Tenet Healthcare Corp.* 23,400 851,175
------------
HOUSING & BUILDING MATERIALS--0.8%
Black & Decker Corp. 9,500 324,781
------------
INSURANCE--12.3%
Ace Ltd. 20,000 785,000
American General Corp. 6,400 499,200
American International Group, Inc. 6,750 645,891
Aon Corp. 10,900 427,825
Chubb Corp. 6,100 482,662
CIGNA Corp. 6,100 636,840
Hartford Financial Services Group, Inc. 6,400 466,800
John Hancock Financial Services, Inc. * 15,700 421,938
Marsh & McLennan Cos., Inc. 3,400 451,350
------------
4,817,506
------------
MANUFACTURING--1.3%
Minnesota Mining and Manufacturing Co. 5,400 492,075
------------
MEDIA & ENTERTAINMENT--0.7%
Viacom, Inc. Class B * 5,000 292,500
------------
MULTI-INDUSTRY--0.7%
United Technologies Corp. 4,200 290,850
------------
NATURAL GAS--2.2%
Coastal Corp. 6,400 474,400
El Paso Energy Corp. 6,300 388,237
------------
862,637
------------
OIL & GAS DRILLING EQUIPMENT--2.5%
Nabors Industries, Inc. * 8,500 445,400
Santa Fe International Corp. 11,400 513,712
------------
959,112
------------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES CORE VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
OIL & GAS--MAJOR INTEGRATED--8.5%
BP Amoco Plc ADR 10,000 $ 530,000
Conoco, Inc. 21,000 548,625
Exxon Mobil Corp. 13,800 1,229,925
Texaco, Inc. 9,500 498,750
USX Marathon Group 18,100 513,587
------------
3,320,887
------------
PERSONAL CARE--1.3%
Kimberly-Clark Corp. 9,000 502,313
------------
PUBLISHING--2.2%
Gannett Co., Inc. 7,300 386,900
McGraw-Hill Cos., Inc. 7,500 476,719
------------
863,619
------------
RESTAURANTS--0.9%
McDonald's Corp. 11,800 356,213
------------
RETAIL--FOOD & DRUG--1.5%
Kroger Co. * 26,600 600,162
------------
RETAIL--GENERAL--2.8%
Federated Department Stores, Inc. * 19,600 512,050
Target Corp. 22,700 581,687
------------
1,093,737
------------
SECURITIES--1.9%
Morgan Stanley Dean Witter & Co. 8,000 731,500
------------
TELECOMMUNICATIONS--11.2%
AT&T Corp. 14,700 431,812
BellSouth Corp. 18,100 728,525
CenturyTel, Inc. 15,900 433,275
Intermedia Communications, Inc. * 7,600 224,200
SBC Communications, Inc. 19,000 950,000
Sprint Corp. 14,700 430,894
Verizon Communications 14,914 722,397
WorldCom, Inc. * 15,000 455,625
------------
4,376,728
------------
UTILITIES--1.5%
Constellation Energy Group 11,400 567,150
------------
UTILITIES--ELECTRIC--2.5%
Unicom Corp. 17,200 966,425
------------
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 37
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES CORE VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
WASTE MANAGEMENT--1.5%
Waste Management, Inc. 33,000 $ 575,438
------------
TOTAL COMMON STOCKS
(Identified Cost $35,356,047) 38,759,864
------------
<CAPTION>
FACE
AMOUNT
--------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-1.4% OF NET ASSETS
COMMERCIAL PAPER--1.4%
Associates Corp. of North America, 6.640%, 10/02/00 $532,647 532,647
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $532,647) 532,647
------------
TOTAL INVESTMENTS--100.6%
(IDENTIFIED COST $35,888,694) @ 39,292,511
Liabilities, Less Cash and Other Assets--(0.6%) (238,275)
------------
NET ASSETS--100% $39,054,236
============
</TABLE>
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments based
on cost of $36,044,030 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there is
an excess of value over tax cost and aggregate gross unrealized depreciation
for all securities in which there is an excess of tax cost over value were
$5,843,034 and $2,594,553, respectively, resulting in net unrealized
appreciation of $3,248,481.
Key to Abbreviations:
ADR: American Depositary Receipt
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES EMERGING MARKETS FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-----------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-89.1% OF NET ASSETS
BRAZIL--11.2%
Embraer-Empresa Brasileria de Aeronautica SA ADR 4,600 $ 142,600
Embratel Participacoes SA ADR 4,000 74,000
Petroleo Brasileiro SA ADR * 2,100 63,131
Uniao de Bancos Brasileiros SA GDR 4,100 135,300
------------
415,031
------------
CROATIA--3.4%
Pliva d.d. GDR 4,500 47,925
Zagrebacka Banka d.d. GDR 5,000 77,500
------------
125,425
------------
HONG KONG--7.5%
AsiaInfo Holdings, Inc. * 1,500 28,406
China Telecom (Hong Kong) Ltd. * 8,000 53,357
China Unicom Ltd. ADR * 3,000 65,438
China Unicom Ltd. * 10,000 22,382
Pacific Century CyberWorks Ltd. * 65,000 73,366
UTStarcom, Inc. * 1,750 36,641
------------
279,590
------------
INDIA--4.9%
Aptech Ltd. GDR 144A * 11,373 52,884
ICICI Bank Ltd. ADR * 10,000 73,750
SSI Ltd. GDR 144A * 10,000 56,000
------------
182,634
------------
ISRAEL--14.9%
AudioCodes Ltd. * 1,100 93,637
BATM Advanced Communications Ltd. * 10,000 95,389
Check Point Software Technologies Ltd. * 1,000 157,500
Comverse Technology, Inc. * 1,300 140,400
Gilat Satellite Networks Ltd. * 850 65,344
------------
552,270
------------
MEXICO--15.8%
Consorcio Ara SA de CV 34,200 55,418
Corporacion Interamericana de Entretenimiento SA Series B * 27,400 132,763
Grupo Elektra SA de CV GDR 4,200 39,900
Grupo Financiero Banamex Accival SA de CV Series O * 29,000 132,991
Grupo Televisa SA ADR * 2,000 115,375
Telefonos de Mexico SA ADR 1,300 69,144
TV Azteca SA de CV ADR 3,200 41,200
------------
586,791
------------
RUSSIA--5.7%
Mobile Telesystems ADR * 1,600 40,600
OAO LUKoil ADR 3,000 172,500
------------
213,100
------------
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 39
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES EMERGING MARKETS FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
SINGAPORE--6.4%
Chartered Semiconductor Manufacturing Ltd. ADR * 1,600 $ 97,100
Datacraft Asia Ltd. 11,440 94,952
OMNI Industries Ltd. 28,000 44,275
------------
236,327
------------
SOUTH AFRICA--3.9%
Dimension Data Holdings Plc * 15,554 144,228
------------
SOUTH KOREA--6.8%
Korea Telecom ADR 1,500 50,438
Samsung Electronics 460 83,325
SK Telecom Co. Ltd. 480 117,078
------------
250,841
------------
TAIWAN--3.4%
Hon Hai Precision Industry Co. Ltd. GDR 144A 5,200 65,260
United Microelectronics Corp. ADR * 5,000 59,375
------------
124,635
------------
TURKEY--5.2%
Dogan Yayin Holdings AS 6,831,000 78,083
Haci Omer Sabanci Holding AS 3,600,000 29,239
Turkcell Iletisim Hizmetleri AS ADR * 4,700 51,700
Vestel Elektronik Sanayi ve Ticaret AS * 185,000 34,085
------------
193,107
------------
TOTAL COMMON STOCKS
(Identified Cost $3,337,044) 3,303,979
------------
<CAPTION>
FACE
AMOUNT
------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-14.8% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co.,
dated 9/29/00 at 5.250% to be repurchased at $547,239
on 10/02/00 collateralized by $405,000 U.S. Treasury Bond,
12.000% due 8/15/13 with a value of $558,900 $547,000 547,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $547,000) 547,000
------------
TOTAL INVESTMENTS--103.9%
(IDENTIFIED COST $3,884,044) @ 3,850,979
Liabilities, Less Cash and Other Assets--(3.9%) (145,296)
------------
NET ASSETS--100% $3,705,683
============
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES EMERGING MARKETS FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
+ See Note 1.
* Non-income producing security
144A 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 qualified institutional buyers.
@ At September 30, 2000, the net unrealized depreciation on investments based
on cost of $3,884,044 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there
is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost
over value were $421,850 and $454,915, respectively, resulting in net
unrealized depreciation of $33,065.
Key to Abbreviations:
ADR: American Depositary Receipt
GDR: Global Depositary Receipt
TEN LARGEST SECTOR HOLDINGS AT SEPTEMBER 30, 2000
AS A PERCENTAGE OF NET ASSETS
<TABLE>
<S> <C>
Telecommunications 16.7%
Communications Equipment 11.6%
Banking & Finance 7.2%
Computer Services 7.2%
Electronic Components--Semiconductor 6.4%
Broadcasting 6.3%
Computer Software 5.8%
Oil & Gas 4.7%
Aerospace/Defense 3.8%
Entertainment 3.6%
</TABLE>
See accompanying notes to financial statements.
LOOMIS SAYLES EQUITY FUNDS 41
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-98.4% OF NET ASSETS
BROADCASTING--1.3%
Gemstar-TV Guide International, Inc. * 2,000 $ 174,375
------------
BUSINESS SERVICES--5.6%
Ariba, Inc. * 1,100 157,592
Art Technology Group, Inc. * 1,400 132,650
Celestica, Inc. * 1,900 130,654
Commerce One, Inc. * 1,700 133,450
Critical Path, Inc. * 2,000 121,500
HomeStore.com, Inc. * 1,500 70,125
------------
745,971
------------
CHEMICALS--SPECIALTY--0.6%
Symyx Technologies, Inc. * 1,750 75,906
------------
COMMERCIAL SERVICES--0.5%
Toyo Information Systems Co. Ltd. 1,000 64,908
------------
COMMUNICATIONS EQUIPMENT--20.7%
ADVA AG Optical Networking 1,000 95,003
Alcatel * 1,700 108,922
AudioCodes Ltd. * 1,200 102,150
Avanex Corp. * 500 53,844
Brocade Communications Systems, Inc. * 900 212,400
Ciena Corp. * 1,400 171,937
Comverse Technology, Inc. * 1,800 194,400
Cosine Communications, Inc. * 700 38,894
Extreme Networks, Inc. * 2,000 229,000
Finistar Corp. * 2,200 106,425
GEO Interactive Media Group Plc * 8,000 146,115
Inrange Technologies Corp. Class B * 1,400 74,200
Juniper Networks, Inc. * 1,000 218,937
New Focus, Inc. * 700 55,344
Newport Corp. 500 79,633
Nortel Networks Corp. 1,640 98,304
ONI Systems Corp. * 800 69,050
Phone.com, Inc. * 700 79,538
QLogic Corp. * 1,100 96,800
Research In Motion Ltd. * 700 68,994
SDL, Inc. * 500 154,656
Sycamore Networks, Inc. * 1,200 129,600
Telefonaktiebolaget LM Ericsson AB 6,800 103,609
UTStarcom, Inc. * 3,750 78,516
------------
2,766,271
------------
COMPUTER HARDWARE--5.6%
EMC Corp. * 2,400 237,900
Network Appliance, Inc. * 1,200 152,850
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
COMPUTER HARDWARE--CONTINUED
Psion Plc 16,500 $ 180,574
Sun Microsystems, Inc. * 1,500 175,125
------------
746,449
------------
COMPUTER SERVICES--3.5%
Datacraft Asia Ltd. 15,040 124,832
Enea Data AB 19,650 113,424
Fujitsu Support and Service, Inc. 500 59,762
Logica Plc 5,400 177,690
------------
475,708
------------
COMPUTER SOFTWARE--17.4%
BEA Systems, Inc. * 2,500 194,687
CacheFlow, Inc. * 700 100,100
Capcom Co. Ltd. 3,500 135,982
Check Point Software Technologies Ltd. * 1,600 252,000
Cresco Ltd. 1,600 109,787
i2 Technologies, Inc. * 1,000 187,062
KONAMI Co. Ltd. 1,400 115,796
Macrovision Corp. * 2,000 162,000
Mercury Interactive Corp. * 1,100 172,425
Micromuse, Inc. * 400 80,375
Oracle Corp. * 1,700 133,875
Packeteer, Inc. * 1,400 53,113
Siebel Systems, Inc. * 1,200 133,575
Softbank Corp. 1,000 93,653
TIBCO Software, Inc. * 1,300 109,769
VeriSign, Inc. * 700 141,794
Veritas Software Co. * 1,100 156,200
------------
2,332,193
------------
ELECTRICAL EQUIPMENT--1.0%
Sanyo Electric Co. Ltd. 16,000 140,943
------------
ELECTRONIC COMPONENTS--9.7%
Anritsu Corp. 6,000 166,906
C-MAC Industries, Inc. * 2,500 143,750
CMK Corp. 6,000 120,172
Flextronics International Ltd. * 2,100 172,463
Koninklijke (Royal) Philips Electronics NV 2,300 99,131
Maruwa Co. Ltd. 3,600 130,187
NEC 5,000 113,821
Stuart Energy Systems Corp. * 10,000 172,494
Valence Technology, Inc. * 3,600 62,100
Venture Manufacturing (Singapore) Ltd. 12,000 115,919
------------
1,296,943
------------
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 43
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
ELECTRONIC COMPONENTS--SEMICONDUCTORS--19.6%
Analog Devices, Inc. * 800 $ 66,050
Applied Micro Circuits Corp. * 700 144,944
ARC International Plc * 22,000 133,234
ARM Holdings Plc * 9,000 100,092
ASM Lithography Holding NV * 4,380 141,529
Bookham Technology Plc ADR * 3,000 128,625
Broadcom Corp. Class A * 700 170,625
Chartered Semiconductor Manufacturing Ltd. ADR * 2,700 163,856
Cree Research, Inc. * 700 81,375
DSP Group, Inc. * 2,000 74,750
GlobeSpan, Inc. * 1,100 134,200
Kopin Corp. * 400 7,200
Marvell Technology Group Ltd. * 850 65,556
NVIDIA Corp. * 2,000 163,750
Parthus Technologies Plc * 28,700 114,600
PMC Sierra, Inc. * 1,000 215,250
Rohm Co. Ltd. 500 137,281
Samsung Electronics 800 144,913
STMicroelectronics NV 1,600 76,200
United Microelectronics Corp. ADR * 8,800 104,500
Veeco Instruments, Inc. * 750 79,699
Xilinx, Inc. * 2,000 171,250
------------
2,619,479
------------
ELECTRONIC MEASURING INSTRUMENTS--1.1%
Orbotech Ltd. * 2,700 147,656
------------
HEALTHCARE--BIOTECHNOLOGY--4.2%
Abgenix, Inc. * 800 64,650
Celltech Group Plc * 3,600 71,821
Human Genome Sciences, Inc. * 400 69,250
Lexicon Genetics, Inc. * 1,500 47,438
MedImmune, Inc. * 1,400 108,150
Millennium Pharmaceuticals, Inc. * 500 73,031
PyroSequencing AB * 8,300 124,306
------------
558,646
------------
HEALTHCARE--DRUGS--2.1%
Biovail Corp. * 1,700 138,444
Serono SA, Series B * 115 140,613
------------
279,057
------------
HEALTHCARE--MEDICAL TECHNOLOGY--1.3%
Illumina, Inc. * 1,400 63,525
MiniMed, Inc. * 1,200 107,250
------------
170,775
------------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE+
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
TELECOMMUNICATIONS--4.2%
Metromedia Fiber Network, Inc. Class A * 3,000 $ 72,938
Nokia Oyj 1,920 77,917
Pacific Century CyberWorks Ltd. * 92,000 103,841
SK Telecom Co. Ltd. 530 129,274
Spirent Plc 17,500 173,401
------------
557,371
------------
TOTAL COMMON STOCKS
(Identified Cost $11,921,076) 13,152,651
------------
<CAPTION>
FACE
AMOUNT
------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-4.1% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co.,
dated 9/29/00 at 5.250% to be repurchased at $545,238 on
10/02/00 collateralized by $405,000 U.S. Treasury Bond
12.000% due 8/15/13 with a value of $558,900 $545,000 545,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $545,000) 545,000
------------
TOTAL INVESTMENTS--102.5%
(IDENTIFIED COST $12,466,076 @ 13,697,651
Liabilities, Less Cash and Other Assets--(2.5%) (335,345)
------------
NET ASSETS--100% $13,362,306
============
</TABLE>
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments based on
cost of $12,508,714 for federal income tax purposes was as follows: Aggregate
gross unrealized appreciation for all securities in which there is an excess
of value over tax cost and aggregate gross unrealized depreciation for all
securities in which there is an excess of tax cost over value were $2,043,183
and $854,246, respectively, resulting in net unrealized appreciation of
$1,188,937.
Key to Abbreviations:
ADR: American Depositary Receipt
TEN LARGEST COUNTRY HOLDINGS AT SEPTEMBER 30, 2000
AS A PERCENTAGE OF NET ASSETS
<TABLE>
<S> <C>
United States 52.0%
Japan 10.4%
Canada 7.2%
Israel 6.3%
United Kingdom 6.3%
Singapore 3.0%
Sweden 2.6%
South Korea 2.0%
Netherlands 1.8%
France 1.4%
</TABLE>
See accompanying notes to financial statements.
LOOMIS SAYLES EQUITY FUNDS 45
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GROWTH FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-97.0% OF NET ASSETS
ADVERTISING--0.9%
Omnicom Group, Inc. 5,500 $ 401,156
---------
BANKS/SAVINGS & LOANS--5.1%
Capital One Financial Corp. 19,100 1,338,194
Northern Trust Corp. 11,600 1,030,950
---------
2,369,144
---------
BROADCASTING--0.9%
Clear Channel Communications, Inc. * 7,800 440,700
---------
BUSINESS SERVICES--1.6%
Ariba, Inc. * 5,200 744,981
---------
COMMUNICATIONS EQUIPMENT--18.7%
Brocade Communications Systems, Inc. * 5,200 1,227,200
Ciena Corp. * 7,600 933,375
Cisco Systems, Inc. * 31,400 1,734,850
Corning, Inc. 5,100 1,514,700
JDS Uniphase Corp. * 8,600 814,313
Juniper Networks, Inc. * 4,400 963,325
Nortel Networks Corp. 13,800 821,962
SDL, Inc. * 2,100 649,556
---------
8,659,281
---------
COMPUTER HARDWARE--7.2%
EMC Corp. * 19,900 1,972,587
Sun Microsystems, Inc. * 11,800 1,377,650
---------
3,350,237
---------
COMPUTER SERVICES--1.2%
America Online, Inc. * 10,100 542,875
---------
COMPUTER SOFTWARE--7.4%
i2 Technologies, Inc. * 3,100 579,894
Siebel Systems, Inc. * 15,900 1,769,868
Veritas Software Co. * 7,500 1,065,000
---------
3,414,762
---------
DIVERSIFIED OPERATIONS--4.2%
General Electric Co. 33,800 1,949,838
---------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--9.4%
Analog Devices, Inc. * 9,200 759,575
Applied Micro Circuits Corp. * 4,700 973,194
Broadcom Corp. Class A * 3,100 755,625
GlobeSpan, Inc. * 5,500 671,000
Intel Corp. 6,900 286,781
PMC Sierra, Inc. * 4,300 925,575
---------
4,371,750
---------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
ENTERTAINMENT--1.2%
Walt Disney Co. 15,200 $ 581,400
---------
FINANCIAL SERVICES--9.5%
Charles Schwab Corp. 22,150 786,325
Citigroup, Inc. 29,300 1,584,031
Concord EFS, Inc. * 13,900 493,667
Merrill Lynch & Co., Inc. 9,900 653,400
State Street Corp. 4,000 520,000
Stilwell Financial, Inc. * 8,300 361,050
---------
4,398,473
---------
FOOD & BEVERAGE--2.3%
PepsiCo, Inc. 23,500 1,081,000
---------
HEALTHCARE--BIOTECHNOLOGY--2.6%
Genentech, Inc. * 6,500 1,206,969
---------
HEALTHCARE--DRUGS--7.0%
Pfizer, Inc. 35,200 1,581,800
Pharmacia Corp. 27,400 1,649,138
---------
3,230,938
---------
HEALTHCARE--MEDICAL TECHNOLOGY--1.7%
Medtronic, Inc. 15,300 792,731
---------
INSURANCE--1.1%
Marsh & McLennan Cos., Inc. 3,800 504,450
---------
MEDIA & ENTERTAINMENT--3.3%
Viacom, Inc. Class B * 25,923 1,516,496
---------
OIL & GAS DRILLING EQUIPMENT--2.6%
R & B Falcon Corp. * 26,400 735,900
Schlumberger Ltd. 5,500 452,719
---------
1,188,619
---------
RETAIL--GENERAL--1.9%
Walgreen Co. 23,300 883,944
---------
SECURITIES--2.7%
Lehman Brothers Holdings, Inc. 8,400 1,241,100
---------
TELECOMMUNICATIONS--2.2%
Nextel Communications, Inc. Class A * 7,500 350,625
Qwest Communications International, Inc. * 14,254 685,083
---------
1,035,708
---------
UTILITIES--2.3%
Enron Corp. 12,200 1,069,025
---------
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 47
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
TOTAL COMMON STOCKS
(Identified Cost $38,642,234) $44,975,577
-----------
WARRANTS--0.0% OF NET ASSETS
COMPUTER SOFTWARE--0.0%
Per-Se Technologies, Inc., expiring 7/08/03 * 203 0
-----------
TOTAL WARRANTS
(Identified Cost $0) 0
-----------
<CAPTION>
FACE
AMOUNT
--------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT--1.5% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust
Co., dated 9/29/00 at 5.250% to be repurchased at
$669,293 on 10/02/00 collateralized by $495,000
U.S. Treasury Bond, 12.000% due 8/15/13 with a
value of $683,100 $669,000 669,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $669,000) 669,000
-----------
TOTAL INVESTMENTS--98.5%
(IDENTIFIED COST $39,311,234) @ 45,644,577
Cash and Other Assets, Less Liabilities--1.5% 711,791
-----------
NET ASSETS--100% $46,356,368
===========
</TABLE>
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments based on
cost of $39,360,300 for federal income tax purposes was as follows: Aggregate
gross unrealized appreciation for all securities in which there is an excess
of value over tax cost and aggregate gross unrealized depreciation for all
securities in which there is an excess of tax cost over value were $7,108,924
and 824,647,respectively, resulting in net unrealized appreciation of
$6,284,277.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-92.3% OF NET ASSETS
AUSTRALIA--1.2%
News Corporation Ltd. ADR 18,900 $1,059,581
News Corporation Ltd. 25,000 352,138
-----------
1,411,719
-----------
BRAZIL--2.5%
Petroleo Brasileiro SA ADR * 34,700 1,043,169
Tele Norte Leste Participacoes SA ADR 36,800 841,800
Uniao de Bancos Brasileiros SA GDR 30,500 1,006,500
-----------
2,891,469
-----------
CANADA--9.1%
Anderson Exploration Ltd. * 71,700 1,565,004
Bombardier Capital Ltd. 80,400 1,386,851
Nortel Networks Corp. 23,700 1,420,616
Petro-Canada 62,700 1,393,518
PMC Sierra, Inc. * 2,900 624,225
Precision Drilling Corp. * 40,100 1,432,618
Royal Bank of Canada 44,400 1,316,712
The Thomson Corp. 29,900 1,180,289
-----------
10,319,833
-----------
DENMARK--3.1%
GN Store Nord 4,800 681,996
Novo Nordisk A/S, Series B 5,800 1,287,622
Vestas Wind Systems A/S 29,800 1,524,260
-----------
3,493,878
-----------
FINLAND--2.7%
Comptel Oyj 35,000 541,915
Elisa Communications Oyj 30,916 1,106,268
Nokia Oyj 34,840 1,413,870
-----------
3,062,053
-----------
FRANCE--9.1%
Alcatel * 15,300 980,299
Aventis SA 16,700 1,254,483
AXA Financial, Inc. 4,400 575,498
Coflexip SA 12,400 1,561,586
Groupe Danone 8,600 1,182,599
Sanofi-Synthelabo SA 30,000 1,614,611
Societe Television Francaise 1 18,000 1,033,987
STMicroelectronics NV 10,700 509,587
Total Fina SA Class B 10,950 1,604,457
-----------
10,317,107
-----------
GERMANY--3.1%
ADVA AG Optical Networking 10,264 975,112
D. Logistics AG * 6,935 465,789
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 49
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
GERMANY--CONTINUED
Deutsche Bank AG 13,300 $ 1,101,338
Siemens AG 4,100 529,012
Thiel Logistik AG * 3,400 501,793
------------
3,573,044
------------
HONG KONG--1.5%
Amoy Properties Ltd. 911,500 882,681
China Telecom (Hong Kong) Ltd. * 125,000 833,708
------------
1,716,389
------------
IRELAND--2.4%
Allied Irish Banks 123,300 1,346,824
Elan Corp. Plc ADR * 24,900 1,363,275
------------
2,710,099
------------
ISRAEL--1.9%
Check Point Software Technologies Ltd. * 6,400 1,008,000
Comverse Technology, Inc. * 10,200 1,101,600
------------
2,109,600
------------
ITALY--4.8%
Unicredito Italiano Spa 239,200 1,249,332
Mediaset Spa 65,500 977,109
Riunione Adriatica di Sicurta Spa 103,200 1,358,924
Saipem Spa 125,900 700,964
San Paolo - IMI 72,700 1,183,460
------------
5,469,789
------------
JAPAN--16.5%
Anritsu Corp. 48,000 1,335,250
Credit Saison Co. Ltd. 45,200 984,932
Daiwa Securities Group, Inc. 83,000 975,112
Fuji Television Network, Inc. 57 739,951
Fujitsu Support and Service, Inc. 4,200 501,998
Furukawa Electric Co. Ltd. 28,300 783,305
Komatsu 162,000 986,916
Kyocera Corp. 5,550 849,135
Meitec Corp. 23,600 1,094,163
Mitsui Fudosan Co. Ltd. 61,000 765,858
Murata Manufacturing Co. Ltd. 5,900 815,151
NEC 41,000 933,330
Nippon Yusen Kabushiki Kaisha 122,000 619,927
Nitto Denko Corp. 20,800 781,121
NTT Mobile Communications 40 1,149,798
Pioneer Corp. 30,000 1,223,979
Rohm Co. Ltd. 4,100 1,125,699
SMC Corp. 5,000 841,486
Sony Corp. 6,600 670,740
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
JAPAN--CONTINUED
Toyo Information Systems Co. Ltd. 9,000 $ 584,172
Yamada Denki Co. 8,800 894,321
------------
18,656,344
------------
MEXICO--2.1%
Grupo Televisa SA ADR * 19,500 1,124,906
Telefonos de Mexico SA ADR 24,600 1,308,413
------------
2,433,319
------------
NETHERLANDS--4.1%
ABN AMRO Holdings NV 30,200 704,596
ASM Lithography Holding NV * 32,070 1,036,262
Koninklijke (Royal) Philips Electronics NV 29,585 1,275,128
Royal Dutch Petroleum Co. 27,200 1,646,362
------------
4,662,348
------------
RUSSIA--1.1%
OAO LUKoil ADR 21,500 1,236,250
------------
SINGAPORE--2.6%
Chartered Semiconductor Manufacturing Ltd. ADR * 14,000 849,625
City Developments 190,000 928,614
Datacraft Asia Ltd. 144,100 1,196,030
------------
2,974,269
------------
SOUTH AFRICA--1.1%
Dimension Data Holdings Plc * 137,000 1,270,361
------------
SOUTH KOREA--0.9%
Samsung Electronics 5,491 994,648
------------
SPAIN--3.2%
Banco Bilbao Vizcaya Argentaria SA 77,300 1,169,533
Banco Santander Central Hispano SA 107,600 1,182,938
Telefonica SA * 62,600 1,241,996
------------
3,594,467
------------
SWEDEN--2.4%
Enea Data AB 92,800 535,663
Nordic Baltic Holding (NBH) AB 167,000 1,198,440
Telefonaktiebolaget LM Ericsson AB 62,200 947,717
------------
2,681,820
------------
SWITZERLAND--4.9%
Credit Suisse Group 5,280 988,288
Nestle SA 580 1,209,979
Serono SA, Series B * 990 1,210,500
Swiss RC 560 1,070,901
UBS AG 7,900 1,052,937
------------
5,532,605
------------
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 51
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
TAIWAN--0.7%
United Microelectronics Corp. ADR * 70,000 $ 831,250
------------
TURKEY--0.4%
Turkcell Iletisim Hizmetleri AS ADR * 38,900 427,900
------------
UNITED KINGDOM--10.9%
Amvescap Plc 58,900 1,275,250
ARM Holdings Plc * 54,000 600,552
Celltech Group Plc * 64,700 1,290,789
Enterprise Oil Plc 181,000 1,481,614
HSBC Holdings Plc 83,200 1,168,524
Logica Plc 58,300 1,918,393
Royal Bank of Scotland Group Plc 80,500 1,700,055
Shire Pharmaceutical Group Plc * 60,200 1,038,978
Spirent Plc 186,000 1,843,006
------------
12,317,161
------------
TOTAL COMMON STOCKS
(Identified Cost $98,771,087) 104,687,722
------------
PREFERRED STOCKS-1.0% OF NET ASSETS
GERMANY--1.0%
Marschollek, Lautenschlaeger und Partner AG, 7,600 1,141,805
------------
TOTAL PREFERRED STOCKS
(Identified Cost $1,072,182) 1,141,805
------------
<CAPTION>
FACE
AMOUNT
--------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-6.2% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust
Co., dated 9/29/00 at 5.250% to be repurchased at
$7,012,066 on 10/02/00 collateralized by $7,895,000
U.S. Treasury Bond, 5.250% due 2/15/29 with a value
of $7,151,252 $7,009,000 7,009,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $7,009,000) 7,009,000
------------
TOTAL INVESTMENTS--99.5%
(IDENTIFIED COST $106,852,269) @ 112,838,527
Cash and Other Assets, Less Liabilities--0.5% 541,192
------------
NET ASSETS--100% $113,379,719
============
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments based on
cost of $107,095,886 for federal income tax purposes was as follows: Aggregate
gross unrealized appreciation for all securities in which there is an excess
of value over tax cost and aggregate gross unrealized depreciation for all
securities in which there is an excess of tax cost over value were $10,891,133
and $5,148,492, respectively, resulting in net unrealized appreciation of
$5,742,641.
Key to Abbreviations:
ADR: American Depositary Receipt
GDR: Global Depositary Receipt
TEN LARGEST SECTOR HOLDINGS AT SEPTEMBER 30, 2000
AS A PERCENTAGE OF NET ASSETS
<TABLE>
<S> <C>
Telecommunications 9.6%
Electronic Components 8.3%
Banking & Finance 7.6%
Financial Services 6.4%
Electronic Components--Semiconductor 5.8%
Computer Services 5.7%
Healthcare - Drugs 5.6%
Oil & Gas Exploration 5.5%
Oil & Gas 5.2%
Communications Equipment 4.8%
</TABLE>
See accompanying notes to financial statements.
LOOMIS SAYLES EQUITY FUNDS 53
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES MID-CAP VALUE FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-95.6% OF NET ASSETS
AEROSPACE/DEFENSE--1.9%
General Dynamics Corp. 1,500 $ 94,219
------------
AIRLINES--1.3%
AMR Corp. * 2,000 65,375
------------
AUTO & RELATED--0.8%
Visteon Corp. 2,800 42,350
------------
BANKS/SAVINGS & LOANS--6.8%
Comerica, Inc. 1,300 75,969
Golden West Financial Corp. 1,600 85,800
PNC Financial Services Group. 1,500 97,500
Wilmington Trust Corp. 1,500 80,437
------------
339,706
------------
CHEMICALS--MAJOR--2.7%
Praxair, Inc. 2,000 74,750
Rohm & Haas Co. 2,100 61,031
------------
135,781
------------
CHEMICALS--SPECIALTY--0.7%
Engelhard Corp. 2,300 37,375
------------
COMMERCIAL SERVICES--2.5%
Convergys Corp. * 1,900 73,863
Harte-Hanks, Inc. 2,000 54,500
------------
128,363
------------
COMMUNICATIONS EQUIPMENT--3.6%
ADC Telecommunications, Inc. * 2,000 53,781
Amphenol Corp. Class A * 900 51,244
Comverse Technology, Inc. * 700 75,600
------------
180,625
------------
COMPUTER HARDWARE--1.2%
Apple Computer, Inc. * 1,400 36,050
Lexmark International Group, Inc. Class A * 600 22,500
------------
58,550
------------
COMPUTER SERVICES--2.4%
Ceridian Corp. * 1,800 50,513
NCR Corp. * 1,800 68,062
------------
118,575
------------
COMPUTER SOFTWARE--4.5%
Cadence Design Systems, Inc. * 3,700 95,044
Cognos, Inc. * 1,600 65,200
Computer Sciences Corp. * 900 66,825
------------
227,069
------------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES MID-CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
ELECTRONIC COMPONENTS--1.5%
Micron Technology, Inc. * 500 $ 23,000
Viasystems Group, Inc. * 3,100 52,700
------------
75,700
------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--2.6%
Cypress Semiconductor Corp. * 900 37,406
Fairchild Semiconductor International Class A * 1,800 50,625
National Semiconductor Corp. * 1,100 44,275
------------
132,306
------------
FINANCIAL SERVICES--3.4%
Concord EFS, Inc. * 2,100 74,583
Old Kent Financial Corp. 1,000 28,937
PMI Group, Inc. 1,000 67,750
------------
171,270
------------
FOOD--PACKAGED & MISCELLANEOUS--1.7%
Sara Lee Corp. 4,100 83,281
------------
FREIGHT TRANSPORTATION--2.5%
GATX Corp. 2,200 92,125
USFreightways Corp. 1,500 34,031
------------
126,156
------------
HEALTHCARE--DRUGS--3.4%
Biovail Corp. * 1,100 89,581
Mylan Laboratories, Inc. 3,100 83,506
------------
173,087
------------
HEALTHCARE--MEDICAL TECHNOLOGY--1.5%
Sybron International Corp. * 3,100 74,400
------------
HEALTHCARE--PRODUCTS--3.6%
Baxter International, Inc. 600 47,887
Biomet, Inc. 2,300 80,500
Waters Corp. * 600 53,400
------------
181,787
------------
HEALTHCARE--SERVICES--2.7%
Universal Health Services, Inc. Class B * 800 68,500
Wellpoint Health Networks, Inc. Class A * 700 67,200
------------
135,700
------------
INSURANCE--5.1%
Arthur J. Gallagher & Co. 1,700 100,512
John Hancock Financial Services, Inc. * 2,700 72,563
St. Paul Cos., Inc. 1,700 83,831
------------
256,906
------------
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 55
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES MID-CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
MACHINERY--3.0%
Advanced Energy Industries, Inc. * 900 $ 29,700
Avery Dennison Corp. 1,500 69,563
Ingersoll-Rand Co. 1,600 54,200
------------
153,463
------------
MANUFACTURING--1.7%
Eaton Corp. 400 24,650
Parker-Hannifin Corp. 1,800 60,750
------------
85,400
------------
MEDIA & ENTERTAINMENT--1.7%
The E.W. Scripps Co. Class A 1,600 86,400
------------
NATURAL GAS--1.8%
Dynegy, Inc. Class A 1,600 91,200
------------
OIL & GAS DRILLING EQUIPMENT--2.0%
ENSCO International, Inc. 900 34,425
Patterson Energy, Inc. * 2,000 68,750
------------
103,175
------------
OIL & GAS EXPLORATION--3.8%
Apache Corp. 1,100 65,037
Burlington Resources, Inc. 1,600 58,900
Kerr-McGee Corp. 1,000 66,250
------------
190,187
------------
OIL & GAS--MAJOR INTEGRATED--1.1%
USX Marathon Group 1,900 53,913
------------
PACKAGING--1.3%
Sealed Air Corp. * 1,400 63,350
------------
PUBLISHING--1.0%
The New York Times Co. Class A 1,300 51,106
------------
REAL ESTATE INVESTMENT TRUSTS--4.0%
Equity Office Properties Trust 2,500 77,656
Reckson Associates Realty Corp. 2,600 66,300
Spieker Properties, Inc. 1,000 57,563
------------
201,519
------------
RESTAURANTS--1.3%
Wendy's International, Inc. 3,200 64,200
------------
RETAIL--FOOD & DRUG--1.3%
CVS Corp. 1,400 64,838
------------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES MID-CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
RETAIL--GENERAL--2.9%
Fortune Brands, Inc. 2,700 $ 71,550
TJX Companies, Inc. 3,300 74,250
------------
145,800
------------
SECURITIES--1.5%
Lehman Brothers Holdings, Inc. 500 73,875
------------
TELECOMMUNICATIONS--2.0%
BroadWing, Inc. * 1,500 38,344
CenturyTel, Inc. 2,300 62,675
------------
101,019
------------
TEXTILE & APPAREL--1.2%
V.F. Corp. 2,400 59,250
------------
UTILITIES--7.0%
Alliant Energy Corp. 2,600 76,375
DQE, Inc. 1,800 72,225
FPL Group, Inc. 1,700 111,775
Southern Co. 2,800 90,825
------------
351,200
------------
WASTE MANAGEMENT--0.6%
Republic Services, Inc. Class A * 2,500 32,813
------------
TOTAL COMMON STOCKS
(Identified Cost $4,307,985) 4,811,289
------------
<CAPTION>
FACE
AMOUNT
--------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-5.0% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust
Co., dated 9/29/00 at 5.250% to be repurchased at
$249,109 on 10/02/00 collateralized by $240,000
U.S. Treasury Note, 7.000% due 7/15/06 with a
value of $255,882 $249,000 249,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $249,000) 249,000
-----------
TOTAL INVESTMENTS--100.6%
(IDENTIFIED COST $4,556,985) @ 5,060,289
Liabilities, Less Cash and Other Assets--(0.6%) (29,507)
-----------
NET ASSETS--100% $5,030,782
===========
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 57
<PAGE>
SAYLES EQUITY FUNDS
LOOMIS SAYLES MID-CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments based on
cost of $4,608,220 for federal income tax purposes was as follows: Aggregate
gross unrealized appreciation for all securities in which there is an excess
of value over tax cost and aggregate gross unrealized depreciation for all
securities in which there is an excess of tax cost over value were $757,665
and $305,596, respectively, resulting in net unrealized appreciation of
$452,069.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES RESEARCH FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-100.2% OF NET ASSETS
AIRLINES--0.6%
Southwest Airlines Co. 850 $ 20,613
----------
BANKS/SAVINGS & LOANS--3.6%
PNC Financial Services Group. 950 61,750
The Bank of New York Co., Inc. 1,150 64,472
----------
126,222
----------
BEVERAGES--2.1%
Anheuser-Busch Cos., Inc. 1,725 72,989
----------
BROADCASTING--0.9%
Clear Channel Communications, Inc. * 587 33,166
----------
BUSINESS SERVICES--1.4%
Ariba, Inc. * 350 50,143
----------
CHEMICALS--MAJOR--1.6%
Praxair, Inc. 1,500 56,063
----------
COMMUNICATIONS EQUIPMENT--11.8%
Brocade Communications Systems, Inc. * 275 64,900
Ciena Corp. * 375 46,055
Cisco Systems, Inc. * 2,300 127,075
JDS Uniphase Corp. * 600 56,812
Juniper Networks, Inc. * 250 54,734
Nortel Networks Corp. 1,100 65,519
----------
415,095
----------
COMPUTER HARDWARE--5.3%
Dell Computer Corp. * 1,500 46,219
EMC Corp. * 1,050 104,081
Sun Microsystems, Inc. * 300 35,025
----------
185,325
----------
COMPUTER SOFTWARE--6.6%
i2 Technologies, Inc. * 225 42,089
Microsoft Corp. * 675 40,711
RealNetworks, Inc. * 825 32,794
Siebel Systems, Inc. * 450 50,090
Veritas Software Co. * 300 42,600
Vignette Corp. * 825 24,647
----------
232,931
----------
DIVERSIFIED OPERATIONS--4.9%
General Electric Co. 3,000 173,062
----------
ELECTRONIC COMPONENTS--1.1%
Micron Technology, Inc. * 800 36,800
----------
LOOMIS SAYLES EQUITY FUNDS 59
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES RESEARCH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
ELECTRONIC COMPONENTS--SEMICONDUCTORS--6.0%
Analog Devices, Inc. * 375 $ 30,961
Applied Micro Circuits Corp. * 275 56,942
GlobeSpan, Inc. * 500 61,000
PMC Sierra, Inc. * 290 62,423
----------
211,326
----------
FINANCIAL SERVICES--7.3%
Citigroup, Inc. 2,266 122,506
Providian Financial Corp. 700 88,900
The Goldman Sachs Group, Inc. 400 45,575
----------
256,981
----------
FOOD & BEVERAGE--1.4%
PepsiCo, Inc. 1,050 48,300
----------
HEALTHCARE--BIOTECHNOLOGY--2.8%
Genentech, Inc. * 375 69,633
MedImmune, Inc. * 350 27,037
----------
96,670
----------
HEALTHCARE--DRUGS--6.9%
Merck & Co., Inc. 550 40,940
Pfizer, Inc. 2,350 105,603
Pharmacia Corp. 900 54,169
Schering-Plough Corp. 900 41,850
----------
242,562
----------
HEALTHCARE--MEDICAL TECHNOLOGY--0.6%
Medtronic, Inc. 400 20,725
----------
HEALTHCARE--PRODUCTS--0.5%
Baxter International, Inc. 225 17,958
----------
HOTELS--1.4%
Starwood Hotels & Resorts Worldwide, Inc. 1,600 50,000
----------
HOME PRODUCTS--1.3%
Newell Rubbermaid, Inc. 2,000 45,625
----------
INSURANCE--2.8%
John Hancock Financial Services, Inc. * 1,700 45,687
Marsh & McLennan Cos., Inc. 400 53,100
----------
98,787
----------
MANUFACTURING--2.4%
Minnesota Mining and Manufacturing Co. 400 36,450
Tyco International Ltd. 900 46,687
----------
83,137
----------
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES RESEARCH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
MEDIA & ENTERTAINMENT--3.3%
Time Warner, Inc. 700 $ 54,775
Viacom, Inc. Class B * 1,050 61,425
----------
116,200
----------
MULTI-INDUSTRY--1.0%
United Technologies Corp. 500 34,625
----------
NATURAL GAS--1.8%
Coastal Corp. 850 63,006
----------
OIL & GAS DRILLING EQUIPMENT--2.4%
ENSCO International, Inc. 1,100 42,075
Transocean Sedco Forex, Inc. 700 41,038
----------
83,113
----------
OIL & GAS--MAJOR INTEGRATED--2.9%
Conoco, Inc. Class B 1,250 33,672
Exxon Mobil Corp. 750 66,844
----------
100,516
----------
PERSONAL CARE--1.2%
Kimberly-Clark Corp. 775 43,255
----------
PUBLISHING--1.6%
McGraw-Hill Cos., Inc. 900 57,206
----------
RETAIL--GENERAL--1.5%
Federated Department Stores, Inc. * 2,000 52,250
----------
RETAIL--SPECIALTY--1.2%
Lowe's Cos., Inc. 925 41,509
----------
SECURITIES--1.4%
Lehman Brothers Holdings, Inc. 325 48,019
----------
TELECOMMUNICATIONS--6.1%
BellSouth Corp. 1,200 48,300
CenturyTel, Inc. 800 21,800
Intermedia Communications, Inc. * 525 15,488
Nextel Communications, Inc. Class A * 450 21,037
SBC Communications, Inc. 1,200 60,000
Sprint Corp. 925 27,114
WorldCom, Inc. * 650 19,744
----------
213,483
----------
TOBACCO--1.4%
Philip Morris Cos., Inc. 1,650 48,572
----------
LOOMIS SAYLES EQUITY FUNDS 61
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES RESEARCH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
UTILITIES--1.1%
Enron Corp. 450 $ 39,431
----------
TOTAL COMMON STOCKS
(Identified Cost $3,437,371) 3,515,665
----------
TOTAL INVESTMENTS--100.2%
(IDENTIFIED COST $3,437,371) @ 3,515,665
Liabilities, Less Cash and Other Assets--(0.2%) (6,157)
----------
NET ASSETS--100% $3,509,508
==========
</TABLE>
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments based
on cost of $3,439,688 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there
is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost
over value were $214,116 and $138,139, respectively, resulting in net
unrealized appreciation of $75,977.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-95.6% OF NET ASSETS
AEROSPACE/DEFENSE--0.5%
Teledyne Technologies, Inc. * 56,100 $ 1,633,913
-----------
BANKS/SAVINGS & LOANS--3.5%
Bank United Corp. 68,350 3,464,491
Silicon Valley Bancshares * 142,000 8,269,281
-----------
11,733,772
-----------
BUILDING & CONSTRUCTION--1.4%
Pulte Corp. 141,550 4,671,150
-----------
BUSINESS SERVICES--6.5%
ChoicePoint, Inc. * 65,200 2,991,050
Corporate Executive Board Co. * 122,800 4,942,700
Forrester Research, Inc. * 101,225 6,453,094
FreeMarkets, Inc. * 46,100 2,633,462
HomeStore.com, Inc. * 98,500 4,604,875
-----------
21,625,181
-----------
CHEMICALS--SPECIALTY--1.7%
Albany Molecular Research, Inc. * 33,900 1,904,756
Symyx Technologies, Inc. * 82,550 3,580,606
-----------
5,485,362
-----------
COMMUNICATIONS EQUIPMENT--8.5%
Aeroflex, Inc. * 70,750 3,440,219
Anaren Microwave, Inc. * 23,700 3,214,312
Digital Lightwave, Inc. * 57,600 4,183,200
Exfo Electro-Optical Engineering, Inc. * 46,100 2,008,231
JNI Corp. * 44,300 3,942,700
Natural MicroSystems Corp. * 54,400 2,926,550
Newport Corp. 17,950 2,858,818
Tollgrade Communications, Inc. * 22,600 3,137,163
Ulticom, Inc. * 50,850 2,396,306
-----------
28,107,499
-----------
COMPUTER HARDWARE--0.7%
RadiSys Corp. * 47,000 2,376,437
-----------
COMPUTER SOFTWARE--11.1%
Aspen Technology, Inc. * 76,500 3,452,062
Macrovision Corp. * 102,050 8,266,050
Manhattan Associates, Inc. * 86,500 5,298,125
Manugistics Group, Inc. * 42,100 4,131,062
Mercury Interactive Corp. * 68,400 10,721,700
Packeteer, Inc. * 65,000 2,465,938
Resonate, Inc. * 65,600 2,591,200
-----------
36,926,137
-----------
LOOMIS SAYLES EQUITY FUNDS 63
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
EDUCATION--2.4%
DeVry, Inc. * 209,150 $ 7,869,269
-----------
ELECTRICAL EQUIPMENT--2.8%
American Superconductor Corp. * 76,700 3,770,284
C&D Technologies, Inc. 53,750 3,050,313
Capstone Turbine Corp. * 36,100 2,499,925
-----------
9,320,522
-----------
ELECTRONIC COMPONENTS--3.5%
Act Manufacturing, Inc. * 44,000 2,321,000
DDi Corp. * 103,600 4,584,300
Plexus Corp. * 69,100 4,871,550
-----------
11,776,850
-----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--15.7%
Actel Corp. * 80,600 2,896,563
Applied Micro Circuits Corp. * 24,750 5,124,797
Cree Research, Inc. * 36,500 4,243,125
Elantec Semiconductor, Inc. * 48,800 4,861,700
EMCORE Corp. * 103,600 4,307,494
Exar Corp. * 26,900 3,254,900
Integrated Silicon Solution, Inc. * 7,700 109,244
Kopin Corp. * 11,000 198,000
Marvell Technology Group Ltd. * 38,850 2,996,306
Oak Technology, Inc. * 144,500 3,955,687
Silicon Image, Inc. * 12,600 312,638
TranSwitch Corp. * 191,750 12,224,062
Veeco Instruments, Inc. * 70,400 7,481,100
-----------
51,965,616
-----------
ELECTRONIC MEASURING INSTRUMENTS--1.6%
Zygo Corp. * 60,000 5,220,000
-----------
ENTERTAINMENT--0.4%
Martha Stewart Living Omnimedia, Inc. Class A * 50,550 1,326,938
-----------
FINANCIAL SERVICES--5.8%
AmeriCredit Corp. * 183,300 5,281,331
Digital Insight Corp. * 49,500 1,775,813
Investors Financial Services Corp. 56,600 3,572,875
Metris Companies, Inc. 218,800 8,642,600
-----------
19,272,619
-----------
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
HEALTHCARE--BIOTECHNOLOGY--7.5%
Abgenix, Inc. * 53,700 $ 4,339,631
Alkermes, Inc. * 49,900 1,927,388
Aurora Biosciences Corp. * 75,900 5,161,200
Exelixis, Inc. * 78,600 2,466,075
Myriad Genetics, Inc. * 38,400 3,316,800
Orchid Biosciences * 65,200 2,216,800
Titan Pharmaceuticals, Inc. * 28,100 1,826,500
Trimeris, Inc. * 51,800 3,622,762
-----------
24,877,156
-----------
HEALTHCARE--DRUGS--2.7%
Barr Laboratories, Inc. * 73,800 4,893,862
Noven Pharmaceuticals, Inc. * 96,700 4,133,925
-----------
9,027,787
-----------
HEALTHCARE--MEDICAL TECHNOLOGY--2.0%
MiniMed, Inc. * 61,400 5,487,625
Novoste Corp. * 27,400 1,164,500
-----------
6,652,125
-----------
HEALTHCARE--SERVICES--5.8%
Laboratory Corp. of America Holdings * 25,600 3,065,600
LifePoint Hospitals, Inc. * 117,750 4,180,125
Orthodontic Centers of America, Inc. * 139,900 4,660,419
Priority Healthcare Corp. Class B * 94,900 7,236,125
-----------
19,142,269
-----------
OIL & GAS DRILLING EQUIPMENT--5.6%
Hanover Compressor Co. * 92,800 3,056,600
Marine Drilling Cos., Inc. * 169,500 4,841,344
Pride International, Inc. * 223,700 5,928,050
UTI Energy Corp. * 107,100 4,779,337
-----------
18,605,331
-----------
OIL & GAS EXPLORATION--1.5%
Barrett Resources Corp. * 90,700 3,429,594
Spinnaker Exploration Co. * 40,400 1,408,950
-----------
4,838,544
-----------
LOOMIS SAYLES EQUITY FUNDS 65
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
RETAIL--SPECIALTY--4.4%
AnnTaylor Stores Corp. * 71,900 $ 2,763,656
Men's Wearhouse, Inc. * 99,350 2,812,847
Talbots, Inc. 84,000 5,565,000
The Cheesecake Factory, Inc. * 80,450 3,479,463
------------
14,620,966
------------
TOTAL COMMON STOCKS
(Identified Cost $247,199,379) 317,075,443
------------
<CAPTION>
FACE
AMOUNT
-------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-3.0% OF NET ASSETS
Repurchase Agreement with State Street Bank and
Trust Co., dated 9/29/00 at 5.250% to be
repurchased at $9,736,258 on 10/02/00 collateralized
by $8,760,000 U.S. Treasury Bond, 7.125% due 2/15/23
with a value of $9,927,217 $9,732,000 9,732,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $9,732,000) 9,732,000
------------
TOTAL INVESTMENTS--98.6%
(IDENTIFIED COST $256,931,379) @ 326,807,443
Cash and Other Assets, Less Liabilities--1.4% 4,755,553
------------
NET ASSETS--100% $331,562,996
============
</TABLE>
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments based
on cost of $257,908,872 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there
is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost
over value were $74,896,447 and $5,997,876, respectively, resulting in net
unrealized appreciation of $68,898,571.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-95.7% OF NET ASSETS
AEROSPACE/DEFENSE--2.3%
Alliant Techsystems, Inc. * 30,200 $ 2,480,175
Newport News Shipbuilding, Inc. 76,600 3,322,525
Teledyne Technologies, Inc. * 50,600 1,473,725
------------
7,276,425
------------
AUTO & RELATED--1.1%
Oshkosh Truck Corp. 89,800 3,479,750
------------
BANKS/SAVINGS & LOANS--5.4%
Astoria Financial Corp. 43,400 1,676,325
City National Corp. 54,100 2,089,613
Colonial BancGroup, Inc. 146,300 1,517,863
Commerce Bancorp, Inc. 36,680 2,134,318
Commercial Federal Corp. 120,750 2,309,344
First Midwest Bancorp, Inc. 96,100 2,558,662
Hudson United Bancorp 89,300 2,466,912
Wilmington Trust Corp. 48,100 2,579,362
------------
17,332,399
------------
BEVERAGES--0.9%
Pepsi Bottling Group, Inc. 93,600 2,813,850
------------
BROADCASTING--1.5%
A. H. Belo Corp. Series A 117,700 2,170,094
Harcourt General, Inc. 29,400 1,734,600
Regent Communications, Inc. * 156,500 870,531
------------
4,775,225
------------
BUSINESS SERVICES--1.1%
Black Box Corp. * 46,800 2,182,050
Progress Software Corp. * 99,300 1,352,962
------------
3,535,012
------------
CHEMICALS--0.9%
Cabot Microelectronics Corp. * 20,100 964,800
Dionex Corp. * 67,100 1,853,638
------------
2,818,438
------------
CHEMICALS--MAJOR--0.6%
IMC Global, Inc. 130,500 1,892,250
------------
LOOMIS SAYLES EQUITY FUNDS 67
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
CHEMICALS--SPECIALTY--4.4%
Cambrex Corp. 48,400 $ 1,790,800
Cuno, Inc. * 85,500 1,902,375
Cytec Industries, Inc. * 51,600 1,725,375
Ferro Corp. 61,300 1,168,531
Great Lakes Chemical Corp. 64,200 1,881,862
Olin Corp. 73,500 1,189,781
OM Group, Inc. 14,500 632,563
Scotts Co. * 84,200 2,820,700
Spartech Corp. 52,400 815,475
------------
13,927,462
------------
COMMERCIAL SERVICES--5.2%
ACNielson Corp. * 112,800 2,686,050
ADVO, Inc. * 80,600 2,659,800
Harte-Hanks, Inc. 97,700 2,662,325
NetRatings, Inc. * 50,900 954,375
R.H. Donnelley Corp. * 204,100 4,311,612
United Stationers, Inc. * 46,600 1,252,375
Viad Corp. 84,000 2,231,250
------------
16,757,787
------------
COMMUNICATIONS EQUIPMENT--1.5%
C-COR.net Corp. * 30,900 473,156
Harris Corp. 67,500 1,919,531
Tekelec * 69,500 2,284,813
------------
4,677,500
------------
COMPUTER HARDWARE--1.3%
National Instruments Corp. * 44,900 1,981,212
Quantum Corp.--DLT & Storage Systems * 85,600 1,289,350
RadiSys Corp. * 20,000 1,011,250
------------
4,281,812
------------
COMPUTER SERVICES--3.6%
Affiliated Computer Services, Inc. Class A * 53,200 2,653,350
Avocent Corp. * 48,700 2,684,587
Complete Business Solutions, Inc. * 88,200 1,190,700
SunGard Data Systems, Inc. * 71,900 3,078,219
Sybase, Inc. * 84,000 1,932,000
------------
11,538,856
------------
COMPUTER SOFTWARE--0.6%
Great Plains Software, Inc. * 64,600 1,816,875
------------
CONSUMER PRODUCTS--0.5%
Fossil, Inc. * 130,800 1,741,275
------------
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
ELECTRICAL EQUIPMENT--1.1%
Sensormatic Electronics Corp. * 99,400 $ 1,491,000
Varian Semiconductor Equipment Associates, Inc. * 52,500 1,965,469
------------
3,456,469
ELECTRONIC COMPONENTS--3.8%
CommScope, Inc. * 78,300 1,918,350
CTS Corp. 59,000 2,986,875
Eletronics For Imaging, Inc. * 75,600 1,908,900
Kent Electronics Corp. * 98,200 2,344,525
Microchip Technology, Inc. * 43,425 1,435,739
Vishay Intertechnology, Inc. * 52,800 1,623,600
------------
12,217,989
------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--4.2%
Actel Corp. * 42,200 1,516,563
C-Cube Microsystems, Inc. * 58,500 1,199,250
Dallas Semiconductor Corp. 57,000 1,873,875
DSP Group, Inc. * 39,900 1,491,263
DuPont Photomasks, Inc. * 26,700 1,568,625
Integrated Device Technology, Inc. * 24,800 2,244,400
International Rectifier Corp. * 32,200 1,628,112
REMEC, Inc. * 58,450 1,720,622
------------
13,242,710
------------
ELECTRONIC MEASURING INSTRUMENTS--0.8%
Tektronix, Inc. 31,900 2,450,319
------------
ENVIRONMENTAL SERVICES--1.2%
American States Water Co. 64,500 1,951,125
Tetra Tech, Inc. * 62,100 1,773,731
------------
3,724,856
------------
FINANCIAL SERVICES--4.7%
Affiliated Managers Group, Inc. * 33,500 1,907,406
Allied Capital Corp. 63,700 1,321,775
American Capital Strategies Ltd. 80,000 1,895,000
AmeriCredit Corp. * 121,900 3,512,244
Federated Investors, Inc. Class B 69,200 1,712,700
Heller Financial, Inc. 99,200 2,833,400
Investment Technology Group, Inc. * 43,100 1,721,306
------------
14,903,831
------------
FOOD--PACKAGED & MISCELLANEOUS--2.6%
Corn Products International, Inc. 101,300 2,304,575
International Multifoods Corp. 52,000 903,500
Interstate Bakeries Corp. 101,500 1,484,438
Michael Foods, Inc. 148,500 3,471,187
------------
8,163,700
------------
LOOMIS SAYLES EQUITY FUNDS 69
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
FOREST & PAPER PRODUCTS--0.1%
Chesapeake Corp. 25,900 $ 498,575
-----------
FREIGHT TRANSPORTATION--1.7%
GATX Corp. 96,500 4,040,937
USFreightways Corp. 65,000 1,474,688
-----------
5,515,625
-----------
HEALTHCARE--BIOTECHNOLOGY--1.8%
Invitrogen Corp. * 9,063 644,591
Medicis Pharmaceutical Corp. Class A * 46,400 2,853,600
Myriad Genetics, Inc. * 26,600 2,297,575
-----------
5,795,766
-----------
HEALTHCARE--MEDICAL TECHNOLOGY--5.1%
Acuson Corp. * 128,000 2,912,000
Beckman Coulter, Inc. 37,100 2,861,337
IDEXX Laboratories, Inc. * 96,100 2,570,675
Respironics, Inc. * 177,900 2,968,706
Steris Corp. * 245,800 2,949,600
Varian Medical Systems, Inc. * 46,100 2,083,144
-----------
16,345,462
-----------
HEALTHCARE--SERVICES--3.7%
AmeriSource Health Corp. Class A * 56,800 2,669,600
Health Management Associates, Inc. Class A * 145,400 3,026,137
Hooper Holmes, Inc. 176,300 1,676,613
Per-Se Technologies, Inc. * 165,366 2,098,081
Renal Care Group, Inc. * 129,500 2,411,938
-----------
11,882,369
-----------
HOME BUILDERS--0.8%
D.R. Horton, Inc. 152,491 2,620,939
-----------
INSURANCE--5.8%
Annuity and Life Re (Holdings) Ltd. 66,900 1,613,963
Arthur J. Gallagher & Co. 60,300 3,565,237
HSB Group, Inc. 65,600 2,632,200
Old Republic International Corp. 120,600 2,901,938
Protective Life Corp. 106,800 3,190,650
Radian Group, Inc. 27,800 1,876,500
StanCorp Financial Group, Inc. 43,100 1,842,525
Trigon Healthcare, Inc. * 15,700 825,231
-----------
18,448,244
-----------
LODGING & HOTEL--0.7%
MeriStar Hospitality Corp. 103,400 2,093,850
-----------
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
MACHINERY--0.4%
Astec Industries, Inc. * 30,300 $ 331,406
Milacron, Inc. 61,400 817,388
-----------
1,148,794
-----------
MANUFACTURING--2.3%
Crane Co. 80,600 1,843,725
Harman International Industries, Inc. 67,200 2,627,520
National Service Industries, Inc. 39,600 774,675
SPX Corp. * 15,200 2,157,450
-----------
7,403,370
-----------
MEDIA & ENTERTAINMENT--1.2%
The E.W. Scripps Co. Class A 73,400 3,963,600
-----------
METALS & MINING--0.7%
Harsco Corp. 51,800 1,142,837
Worthington Industries, Inc. 102,300 959,063
-----------
2,101,900
-----------
OFFICE EQUIPMENT--0.4%
HON Industries, Inc. 50,800 1,250,950
-----------
OIL & GAS DRILLING EQUIPMENT--2.3%
Patterson Energy, Inc. * 71,000 2,440,625
Tidewater, Inc. 59,700 2,716,350
Veritas DGC, Inc. * 81,300 2,352,619
-----------
7,509,594
-----------
OIL & GAS REFINING--0.8%
Ultramar Diamond Shamrock Corp. 99,100 2,514,663
-----------
PUBLISHING--1.0%
Houghton Mifflin Co. 35,100 1,377,675
John Wiley & Son, Inc. Class A 73,400 1,683,613
-----------
3,061,288
-----------
REAL ESTATE INVESTMENT TRUSTS--4.4%
Avalonbay Communities, Inc. 41,200 1,964,725
CarrAmerica Realty Corp. 73,600 2,226,400
Liberty Property Trust 107,300 2,950,750
Pacific Gulf Properties, Inc. 89,500 2,394,125
Prentiss Properties Trust 42,900 1,120,762
Reckson Associates Realty Corp. 131,300 3,348,150
-----------
14,004,912
-----------
RESTAURANTS--1.5%
Morrison Management Specialists, Inc. 32,200 951,510
Wendy's International, Inc. 187,000 3,751,687
-----------
4,703,197
-----------
LOOMIS SAYLES EQUITY FUNDS 71
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
RETAIL--FOOD & DRUG--1.0%
Ruddick Corp. 88,300 $ 1,225,162
Sonic Corp. * 59,500 1,874,250
------------
3,099,412
------------
RETAIL--GENERAL--1.0%
Family Dollar Stores, Inc. 165,000 3,176,250
------------
RETAIL--SPECIALTY--2.0%
Charming Shoppes, Inc. * 374,400 1,953,900
Men's Wearhouse, Inc. * 58,300 1,650,619
Pier 1 Imports, Inc. 99,700 1,352,181
The Wet Seal, Inc. * 95,200 1,493,450
------------
6,450,150
------------
STEEL--0.4%
Allegheny Technologies, Inc. 73,100 1,324,938
------------
TELECOMMUNICATIONS--0.4%
ITC DeltaCom, Inc. * 106,600 1,225,900
------------
TEXTILE & APPAREL--1.5%
Liz Claiborne, Inc. 89,500 3,445,750
Russell Corp. 84,600 1,343,025
------------
4,788,775
------------
UTILITIES--5.1%
AGL Resources, Inc. 88,400 1,773,525
Alliant Energy Corp. 80,600 2,367,625
MDU Resources Group, Inc. 107,200 3,189,200
New Jersey Resources Corp. 34,600 1,405,625
NSTAR 66,100 2,660,525
Vectren Corp. 167,200 3,396,250
Washington Gas Light Co. 59,800 1,607,125
------------
16,399,875
------------
WASTE MANAGEMENT--0.3%
Republic Services, Inc. Class A * 82,700 1,085,438
------------
TOTAL COMMON STOCKS
(Identified Cost $266,602,457) 305,238,626
------------
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
FACE
AMOUNT VALUE +
-------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-6.2% OF NET ASSETS
COMMERCIAL PAPER-6.2%
Associates Corp. of North America, 6.640%, 10/02/00 $16,021,757 $ 16,021,757
Chevron USA, Inc., 6.550%, 10/02/00 3,950,000 3,950,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $19,971,757) 19,971,757
------------
TOTAL INVESTMENTS--101.9%
(IDENTIFIED COST $286,574,214) @ 325,210,383
Liabilities, Less Cash and Other Assets--(1.9%) (6,202,806)
------------
NET ASSETS-100% $319,007,577
============
</TABLE>
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments based
on cost of $286,973,726 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there
is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost
over value were $55,750,554 and $17,513,897, respectively, resulting in net
unrealized appreciation of $38,236,657.
See accompanying notes to financial statements.
LOOMIS SAYLES EQUITY FUNDS 73
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
--------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-40.8% OF NET ASSETS
NON-CONVERTIBLE BONDS--29.3%
ARGENTINA--1.9%
Republic of Argentina, 6.000%, 3/31/23 USD 300,000 $ 202,500
-----------
AUSTRALIA--1.0%
Queensland Treasury, 8.000%, 9/14/07 AUD 100,000 58,747
South Australia Government Finance Authority,
Zero Coupon Bond, 12/21/15 220,000 41,987
-----------
100,734
-----------
BRAZIL--1.1%
Republic of Brazil, 11.000%, 8/17/40 USD 150,000 119,625
-----------
GERMANY--2.7%
Deutsche Ausgleichsbank, 4.000%, 7/04/09 EUR 180,000 145,493
Eurohypo AG--Europaeische Hypothekenbank
der Deutschen Bank, 4.000%, 2/01/07 180,000 144,699
-----------
290,192
-----------
KOREA--1.4%
Cho Hung Bank Co., Ltd., 11.500%, 4/01/10 144A USD 75,000 74,437
Hanvit Bank, 12.750%, 3/01/10 144A 75,000 76,125
-----------
150,562
-----------
MEXICO--1.0%
Petroleos Mexicanos, 8.625%, 12/01/23 144A 115,000 103,213
-----------
PERU--1.1%
Republic of Peru, 3.750%, 3/07/17 (step to
4.000% on 3/07/01) # 215,000 120,937
-----------
PHILIPPINES--0.6%
Republic of Philippines, 10.625%, 3/16/25 75,000 63,375
-----------
SOUTH AFRICA--1.1%
Republic of South Africa, 13.500%, 9/15/15 ZAR 800,000 110,603
-----------
UNITED KINGDOM--0.3%
Dolphin Telecom Plc, Zero Coupon Bond, 6/01/08
(step to 11.625% on 6/01/03) # EUR 115,000 33,658
-----------
UNITED STATES--17.1%
Borden, Inc., 7.875%, 2/15/23 USD 150,000 111,640
Boston Celtics Ltd., 6.000%, 6/30/38 90,000 51,300
Chesapeake Energy Corp., Series B,
7.875%, 3/15/04 100,000 94,000
Columbia/HCA Healthcare Corp., 7.050%, 12/01/27 50,000 38,250
Columbia/HCA Healthcare Corp., 7.190%, 11/15/15 50,000 42,250
Dillon Read Structured Finance Corp., Series A,
6.660%, 8/15/10 145,343 111,899
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
FACE
AMOUNT VALUE +
--------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
UNITED STATES--CONTINUED
Hyperion Telecommunications, Inc., Series B,
Zero Coupon Bond, 4/15/03
(step to 13.000% on 4/15/01) # USD 150,000 $ 121,875
International Paper Co., 6.875%, 11/01/23 125,000 107,501
J.C. Penney Co., Inc., 7.125%, 11/15/23 75,000 45,419
Nextlink Communications, Inc., Zero Coupon Bond,
12/01/09 (step to 12.125% on 12/01/04) 144A 200,000 107,000
NTL Communications Corp., Series B,
Zero Coupon Bond, 4/15/09
(step to 9.750% on 4/15/04) # GBP 75,000 53,988
NTL Communications Corp., Series B, Zero Coupon
Bond, 11/15/09 (step to 11.500% on
11/15/04) # USD 300,000 135,084
Philip Morris Cos., Inc., 7.750%, 1/15/27 125,000 109,373
Pioneer Natural Resources Co., 7.200%, 1/15/28 175,000 139,125
R & B Falcon Corp., Series B, 7.375%, 4/15/18 75,000 66,844
Raytheon Co., 6.400%, 12/15/18 150,000 127,213
RCN Corp., Zero Coupon Bond, 10/15/07
(step to 11.125% on 10/15/02) # 325,000 175,500
Teligent, Inc., Zero Coupon Bond, 3/01/08
(step to 11.500% on 3/01/03) # 150,000 42,000
TRW, Inc., 6.650%, 1/15/28 50,000 39,721
Woolworth Corp., 8.500%, 1/15/22 150,000 97,500
-----------
1,817,482
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $3,276,284) 3,112,881
-----------
CONVERTIBLE BONDS--11.5%
CAYMAN ISLAND--1.6%
FLI Capital Cayman, 6.250%, 2/01/02 150,000 163,500
-----------
HONG KONG--1.9%
Bangkok Bank Public Co. Ltd., 4.589%, 3/03/04 400,000 201,000
-----------
PHILIPPINES--0.8%
MBI Finance Ltd., Zero Coupon Bond, 12/18/01 100,000 89,000
-----------
SOUTH KOREA--0.7%
Ssangyong Oil Refining Co., Inc.,
3.000%, 12/31/04 100,000 72,500
-----------
THAILAND--1.5%
Loxley Public Co. Ltd., 2.500%, 4/04/01 ^ 450,000 162,000
-----------
UNITED STATES--5.0%
Baker Hughes, Inc., Zero Coupon Bond, 5/05/08 100,000 82,280
Builders Transportation, Inc.,
8.000%, 8/15/05 ^ 95,000 119
CML Group, Inc., 5.500%, 1/15/03 ^ 150,000 94
Dura Pharmaceuticals, Inc., 3.500%, 7/15/02 100,000 98,125
Exide Corp., 2.900%, 12/15/05 144A 125,000 58,125
Kent Electronics Corp., 4.500%, 9/01/04 50,000 41,213
LOOMIS SAYLES EQUITY FUNDS 75
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
FACE
AMOUNT VALUE +
--------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
UNITED STATES--CONTINUED
Loews Corp., 3.125%, 9/15/07 USD 150,000 $ 134,583
Thermedics, Inc., Zero Coupon Bond, 6/01/03 100,000 70,000
Thermo Electron Corp., 4.250%, 1/01/03 144A 50,000 47,500
-----------
532,039
-----------
TOTAL CONVERTIBLE BONDS
(Identified Cost $1,588,667) 1,220,039
-----------
TOTAL BONDS AND NOTES
(Identified Cost $4,864,951) 4,332,920
-----------
<CAPTION>
SHARES
-------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-45.3% OF NET ASSETS
AUSTRALIA--1.1%
CSL Ltd. 6,400 120,578
-----------
CANADA--2.5%
Canadian Hunter Exploration Ltd. * 3,500 84,929
Royal Bank of Canada 2,400 71,320
Tesco Corp. * 10,900 111,594
-----------
267,843
-----------
FINLAND--0.4%
Nokia Oyj 1,100 44,597
-----------
FRANCE--3.0%
Alcatel * 1,000 64,010
AXA Financial, Inc. 600 78,402
Sanofi-Synthelabo SA 2,100 112,914
STMicroelectronics NV 1,300 61,912
-----------
317,238
-----------
GERMANY--0.8%
ADVA AG Optical Networking 700 66,438
D. Logistics AG * 319 21,405
-----------
87,843
-----------
HONG KONG--1.0%
Television Broadcasts Ltd. 18,000 108,513
-----------
IRELAND--0.7%
Elan Corp. Plc ADR * 1,400 76,650
-----------
ISRAEL--3.8%
BATM Advanced Communications Ltd. * 15,000 142,861
Comverse Technology, Inc. * 1,300 140,400
Taro Pharmaceutical Industries Ltd. * 6,500 116,188
-----------
399,449
-----------
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
ITALY--1.3%
Unicredito Italiano Spa 10,000 $ 52,180
Riunione Adriatica di Sicurta Spa 6,200 81,562
-----------
133,742
-----------
JAPAN--5.3%
Anritsu Corp. 3,000 83,337
CMK Corp. 3,000 60,003
Fast Retailing Co. Ltd. 200 40,743
Fast Retailing Co. Ltd. * 200 40,372
Maruwa Co. Ltd. 2,100 75,837
Meitec Corp. 2,000 92,597
Sanyo Electric Co. Ltd. 11,000 96,764
Suzuken Co., Ltd. 1,900 79,346
-----------
568,999
-----------
MEXICO--1.5%
Grupo Televisa SA ADR * 2,700 155,756
-----------
SINGAPORE--0.6%
Venture Manufacturing (Singapore) Ltd. 7,000 67,606
-----------
SOUTH KOREA--1.4%
Samsung Electronics 800 144,913
-----------
SWEDEN--0.6%
Telefonaktiebolaget LM Ericsson AB 3,900 59,336
-----------
SWITZERLAND--1.9%
Credit Suisse Group 400 74,877
Serono SA, Series B * 100 122,283
-----------
197,160
-----------
TAIWAN--0.8%
United Microelectronics Corp. ADR * 7,500 89,063
-----------
UNITED KINGDOM--3.2%
ARC International Plc * 18,500 111,864
Royal Bank of Scotland Group Plc 4,100 86,452
Shire Pharmaceutical Group Plc * 3,700 63,758
Spirent Plc 8,400 83,103
-----------
345,177
-----------
UNITED STATES--15.4%
AFLAC, Inc. 950 60,859
Alcoa, Inc. 1,300 32,906
American General Corp. 600 46,800
Amgen, Inc. * 500 34,914
Anadarko Petroleum Corp. 850 56,491
Analog Devices, Inc. * 400 33,025
Apple Computer, Inc. * 700 18,025
LOOMIS SAYLES EQUITY FUNDS 77
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
UNITED STATES--CONTINUED
BellSouth Corp. 1,200 $ 48,300
Best Buy Co., Inc. * 600 38,175
BJ's Wholesale Club, Inc. * 900 30,713
Citigroup, Inc. 1,066 57,631
Compaq Computer Corp. 1,600 44,128
CVS Corp. 1,000 46,312
Devon Energy Corp. 750 45,112
Dominion Resources, Inc. 600 34,838
Duke Energy Corp. 500 42,875
El Paso Energy Corp. 750 46,219
EOG Resources, Inc. 1,400 54,425
General Dynamics Corp. 700 43,969
GlobeSpan, Inc. * 300 36,600
Hartford Financial Services Group, Inc. 600 43,763
International Business Machines Corp. 520 58,500
Kerr-McGee Corp. 900 59,625
Manpower, Inc. 700 22,356
McGraw-Hill Cos., Inc. 700 44,494
Minnesota Mining and Manufacturing Co. 500 45,562
Nabors Industries, Inc. * 1,050 55,020
Newmont Mining Corp. 2,000 34,000
Peco Energy Co. 900 54,506
PepsiCo, Inc. 1,100 50,600
Pfizer, Inc. 1,100 49,431
Pharmacia Corp. 800 48,150
Phillips Petroleum Co. 700 43,925
Praxair, Inc. 900 33,638
Southwest Airlines Co. 1,800 43,650
Target Corp. 1,500 38,438
Unocal Corp. 1,550 54,928
-----------
1,632,903
-----------
TOTAL COMMON STOCKS
(Identified Cost $4,568,198) 4,817,366
-----------
-------------------------------------------------------------------------------
PREFERRED STOCKS-2.5% OF NET ASSETS
NON-CONVERTIBLE PREFERRED STOCKS--0.5%
UNITED STATES--0.5%
CarrAmerica Realty Corp., Series C, 8.550% 400 8,600
Duke-Weeks Realty Corp., Series F, 8.000% 500 10,813
Highwoods Properties, Inc., Series B, 8.000% 750 15,609
ProLogis Trust, Series D, 7.920% 1,000 21,375
-----------
56,397
-----------
TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Identified Cost $49,745) 56,397
-----------
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS-CONTINUED
CONVERTIBLE PREFERRED STOCKS--2.0%
GERMANY--0.6%
Marschollek, Lautenschlaeger und Partner AG 400 $ 60,037
-----------
UNITED STATES--1.4%
Dynegy, Inc., 4.700% 100 3,400
Entergy Arkansas Capital I, 8.500% 250 5,875
Equity Residential Properties Trust, 7.250% 500 11,313
Hercules Trust I, 6.500% 25 14,625
Owens Corning, 6.500% ^ 3,250 21,937
Philippine Long Distance Telephone Co., $3.50 GDS 2,500 90,312
-----------
147,462
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified Cost $289,720) 207,499
-----------
TOTAL PREFERRED STOCKS
(Identified Cost $339,465) 263,896
-----------
<CAPTION>
FACE
AMOUNT
--------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT--11.8% OF NET ASSETS
Repurchase Agreement with State Street Bank
and Trust Co., dated 9/29/00 at 5.250% to
be repurchased at $1,258,550 on 10/02/00
collateralized by $980,000 U.S. Treasury
Bond, 8.875% due 2/15/19 with a value
of $1,285,401 USD 1,258,000 1,258,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $1,258,000) 1,258,000
-----------
TOTAL INVESTMENTS--100.4%
(IDENTIFIED COST $11,030,614) @ 10,672,182
Liabilities, Less Cash and Other Assets--(0.4%) (45,284)
-----------
NET ASSETS--100% $10,626,898
===========
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 79
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
+ See Note 1.
144A 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 qualified institutional buyers.
^ Security in default
# Step Bond: Coupon is zero or below market rate for an initial period and
then increases at a specified date and rate.
* Non-income producing security
@ At September 30, 2000, the net unrealized depreciation on investments
based on cost of $11,034,871 for federal income tax purposes was as
follows: Aggregate gross unrealized appreciation for all securities in
which there is an excess of value over tax cost and aggregate gross
unrealized depreciation for all securities in which there is an excess
of tax cost over value were $718,370 and $1,081,059, respectively,
resulting in net unrealized depreciation of $362,689.
Key to Abbreviations:
ADR: American Depositary Receipt
AUD: Australian Dollar
EUR: Euro
GBP: Great British Pound
GDS: Global Depositary Security
USD: United States Dollar
ZAR: South African Rand
TEN LARGEST SECTOR HOLDINGS AT SEPTEMBER 30, 2000
AS A PERCENTAGE OF NET ASSETS
<TABLE>
<S> <C>
Foreign Government/Agency 9.0%
Telecommunications 8.0%
Healthcare - Biotechnology 7.6%
Food & Beverage 6.8%
Electronic Components - Semiconductors 4.5%
Communications Equipment 4.5%
Financial Services 4.3%
Insurance 4.2%
Retail - Food & Drug 3.4%
Oil & Gas Drilling Equipment 3.4%
</TABLE>
See accompanying notes to financial statements.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
LOOMIS SAYLES EQUITY FUNDS 81
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AGGRESSIVE EMERGING GLOBAL
GROWTH CORE MARKETS TECHNOLOGY
FUND VALUE FUND FUND FUND
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments at value $169,308,611 $39,292,511 $3,303,979 $13,152,651
Repurchase agreement at value 18,203,000 0 547,000 545,000
Cash 22 164,269 683 0
Foreign currency at value 0 0 0 0
Receivable for:
Fund shares sold 3,137,386 325 30,679 54,786
Securities sold 1,769,441 508,281 0 95,254
Dividends and interest 6,909 33,946 3,176 1,886
Foreign tax reclaim 491 0 0 883
Due from the adviser (Note 3) 8,467 9,398 26,971 24,457
Other assets (Note 1I) 0 0 0 0
------------ ----------- ---------- -----------
192,434,327 40,008,730 3,912,488 13,874,917
------------ ----------- ---------- -----------
LIABILITIES
Payable for:
Securities purchased 19,083,416 867,881 169,548 411,879
Fund shares redeemed 13,216 23,407 0 9,376
Due to Custodian 0 0 0 147
Accrued expenses:
Management fees (Note 3) 88,021 16,182 3,995 11,166
Trustees' fees (Note 3A) 609 612 532 1,550
Administrative fees (Note 3) 6,430 2,995 596 360
12b-1 fees payable (Note 3) 17,095 54 6 1,215
Other 37,872 43,363 32,128 76,918
------------ ----------- ---------- -----------
19,246,659 954,494 206,805 512,611
------------ ----------- ---------- -----------
NET ASSETS $173,187,668 $39,054,236 $3,705,683 $13,362,306
============ =========== ========== ===========
Net Assets consist of:
Capital paid in $137,161,710 $35,956,720 $3,668,679 $13,644,775
Undistributed net investment income 0 444,955 0 0
Accumulated net realized gain (loss) 2,263,387 (751,256) 70,069 (1,516,261)
Unrealized appreciation (depreciation) on:
Investments 33,762,571 3,403,817 (33,065) 1,231,575
Foreign currency translations 0 0 0 2,217
------------ ----------- ---------- -----------
NET ASSETS $173,187,668 $39,054,236 $3,705,683 $13,362,306
============ =========== ========== ===========
INSTITUTIONAL CLASS:
Net assets $ 62,363,687 $38,792,294 $3,679,038 $ 7,677,588
Shares of beneficial interest
outstanding, no par value 1,307,078 2,564,938 247,546 604,646
Net asset value and redemption
price $ 47.71 $ 15.12 $ 14.86 $ 12.70
RETAIL CLASS:
Net assets $110,823,764 $ 261,942 $ 26,645 $ 5,684,718
Shares of beneficial interest
outstanding, no par value 2,341,611 17,378 1,799 451,510
Net asset value and redemption
price $ 47.33 $ 15.07 $ 14.81 $ 12.59
ADMIN CLASS:
Net assets $ 217 -- -- --
Shares of beneficial interest
outstanding, no par value 5 -- -- --
Net asset value and redemption
price $ 47.31 -- -- --
Identified cost of investments $153,749,040 $35,888,694 $3,884,044 $12,466,076
============ =========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
MID-CAP SMALL CAP
GROWTH INTERNATIONAL VALUE RESEARCH GROWTH
FUND EQUITY FUND FUND FUND FUND
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at value $44,975,577 $105,829,527 $4,811,289 $3,515,665 $317,075,443
Repurchase agreement at value 669,000 7,009,000 249,000 0 9,732,000
Cash 903 0 536 15,643 744
Foreign currency at value 0 0 0 0 0
Receivable for:
Fund shares sold 778,551 561,938 0 0 1,090,715
Securities sold 226,530 947,050 73,820 148,028 7,965,547
Dividends and interest 9,812 72,555 6,092 1,243 8,500
Foreign tax reclaim 0 45,834 0 0 0
Due from the adviser (Note 3) 13,602 39,324 13,956 16,583 0
Other assets (Note 1I) 0 0 0 0 0
----------- ------------ ---------- ---------- ------------
46,673,975 114,505,228 5,154,693 3,697,162 335,872,949
----------- ------------ ---------- ---------- ------------
LIABILITIES
Payable for:
Securities purchased 247,002 603,149 71,513 150,442 3,409,628
Fund shares redeemed 7,325 141,251 8,161 0 634,803
Due to Custodian 0 226,530 0 0 0
Accrued expenses:
Management fees (Note 3) 18,767 71,476 3,150 2,160 196,264
Trustees' fees (Note 3A) 608 612 609 325 609
Administrative fees (Note 3) 1,962 8,310 673 615 14,078
12b-1 fees payable (Note 3) 213 1,270 61 0 12,940
Other 41,730 72,911 39,744 34,112 41,631
----------- ------------ ---------- ---------- ------------
317,607 1,125,509 123,911 187,654 4,309,953
----------- ------------ ---------- ---------- ------------
NET ASSETS $46,356,368 $113,379,719 $5,030,782 $3,509,508 $331,562,996
=========== ============ ========== ========== ============
Net Assets consist of:
Capital paid in $38,028,576 $ 96,250,321 $4,510,811 $3,417,087 $248,433,936
Undistributed net investment income 0 0 23,093 0 0
Accumulated net realized gain (loss) 1,994,449 11,148,277 (6,426) 14,127 13,252,996
Unrealized appreciation (depreciation) on:
Investments 6,333,343 5,986,258 503,304 78,294 69,876,064
Foreign currency translations 0 (5,137) 0 0 0
----------- ------------ ---------- ---------- ------------
NET ASSETS $46,356,368 $113,379,719 $5,030,782 $3,509,508 $331,562,996
=========== ============ ========== ========== ============
INSTITUTIONAL CLASS:
Net assets $45,328,336 $107,791,844 $4,737,940 $3,509,508 $262,146,997
Shares of beneficial interest
outstanding, no par value 3,022,739 6,192,884 392,930 332,974 9,715,558
Net asset value and redemption
price $ 15.00 $ 17.41 $ 12.06 $ 10.54 $ 26.98
RETAIL CLASS:
Net assets $ 1,027,864 $ 5,587,709 $ 292,842 -- $ 69,415,805
Shares of beneficial interest
outstanding, no par value 69,437 322,794 24,357 -- 2,595,971
Net asset value and redemption
price $ 14.80 $ 17.31 $ 12.02 -- $ 26.74
ADMIN CLASS:
Net assets $ 168 $ 166 -- -- $ 194
Shares of beneficial interest
outstanding, no par value 11 10 -- -- 7
Net asset value and redemption
price $ 14.79 $ 17.30 -- -- $ 26.73
Identified cost of investments $39,311,234 $106,852,269 $4,556,985 $3,437,371 $256,931,379
=========== ============ ========== ========== ============
<PAGE>
<CAPTION>
SMALL CAP
VALUE WORLDWIDE
FUND FUND
----------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments at value $325,210,383 $ 9,414,182
Repurchase agreement at value 0 1,258,000
Cash 199,637 33
Foreign currency at value 0 7,484
Receivable for:
Fund shares sold 353,897 0
Securities sold 912,652 0
Dividends and interest 380,114 74,891
Foreign tax reclaim 0 497
Due from the adviser (Note 3) 14,490 15,021
Other assets (Note 1I) 0 535
------------ -----------
327,071,173 10,770,643
------------ -----------
LIABILITIES
Payable for:
Securities purchased 4,763,044 94,842
Fund shares redeemed 2,967,699 1,318
Due to Custodian 0 0
Accrued expenses:
Management fees (Note 3) 199,788 6,503
Trustees' fees (Note 3A) 608 612
Administrative fees (Note 3) 20,055 1,068
12b-1 fees payable (Note 3) 21,339 144
Other 91,063 39,258
------------ -----------
8,063,596 143,745
------------ -----------
NET ASSETS $319,007,577 $10,626,898
============ ===========
Net Assets consist of:
Capital paid in $264,487,501 $ 8,140,586
Undistributed net investment income 2,339,761 346,942
Accumulated net realized gain (loss) 13,544,146 2,498,097
Unrealized appreciation (depreciation) on:
Investments 38,636,169 (358,432)
Foreign currency translations 0 (295)
------------ -----------
NET ASSETS $319,007,577 $10,626,898
============ ===========
INSTITUTIONAL CLASS:
Net assets $214,919,080 $ 9,748,266
Shares of beneficial interest
outstanding, no par value 10,524,566 699,615
Net asset value and redemption
price $ 20.42 $ 13.93
RETAIL CLASS:
Net assets $ 92,697,962 $ 878,632
Shares of beneficial interest
outstanding, no par value 4,547,504 63,263
Net asset value and redemption
price $ 20.38 $ 13.89
ADMIN CLASS:
Net assets $ 11,390,535 --
Shares of beneficial interest
outstanding, no par value 560,112 --
Net asset value and redemption
price $ 20.34 --
Identified cost of investments $286,574,214 $11,030,614
============ ===========
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 83
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
AGGRESSIVE CORE EMERGING GLOBAL
GROWTH VALUE MARKETS TECHNOLOGY
FUND FUND FUND# FUND##
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends* $ 30,209 $ 868,526 $ 12,991 $ 10,030
Interest 201,670 32,229 12,468 18,770
------------ ------------ ------------ ------------
231,879 900,755 25,459 28,800
------------ ------------ ------------ ------------
Expenses
Management fees (Note 3) 499,928 262,304 40,291 80,203
12b-1 fees (Retail Class) (Note 3) 72,731 978 14 9,084
12b-1 fees (Admin Class) (Note 3) 0 0 0 0
Shareholder service fees (Admin Class) 0 0 0 0
Trustees' fees and expenses (Note 3A) 4,432 4,432 4,556 4,490
Administrative fees 42,410 31,027 3,703 6,814
Custodian and accounting fees 65,900 63,234 45,968 65,358
Transfer Agent fees (Institutional
Class) (Note 3) 30,100 36,180 24,487 19,403
Transfer Agent fees (Retail Class) (Note 3) 27,503 18,805 3,600 13,363
Transfer Agent fees (Admin Class) (Note 3) 0 0 0 0
Audit and tax services fees 15,640 15,797 20,050 20,050
Registration fees 32,775 24,709 32,311 17,437
Printing fees 7,471 13,070 10,790 22,276
Amortization of organization expenses
Institutional Class: (Note 1I) 0 0 0 0
Other expenses 11,908 13,496 17,690 14,276
------------ ------------ ------------ ------------
Total expenses 810,798 484,032 203,460 272,754
Less expenses waived and reimbursed by
the investment adviser (Note 3) (71,496) (37,137) (130,922) (143,366)
------------ ------------ ------------ ------------
Net expenses 739,302 446,895 72,538 129,388
------------ ------------ ------------ ------------
Net investment income (loss) (507,423) 453,860 (47,079) (100,588)
------------ ------------ ------------ ------------
NET REALIZED GAIN (LOSS) ON:
Investments** 2,866,444 (750,571) 532,929 (1,517,717)
Foreign currency transactions 0 0 (11) (14)
------------ ------------ ------------ ------------
Total net realized gain (loss) 2,866,444 (750,571) 532,918 (1,517,731)
------------ ------------ ------------ ------------
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON:
Investments*** 30,887,655 876,221 (33,065) 1,231,575
Foreign currency translations 0 0 0 2,217
------------ ------------ ------------ ------------
Total net change in unrealized
appreciation (depreciation) 30,887,655 876,221 (33,065) 1,233,792
------------ ------------ ------------ ------------
Total net realized gain (loss) and change
in unrealized appreciation
(depreciation) 33,754,099 125,650 499,853 (283,939)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 33,246,676 $ 579,510 $ 452,774 $ (384,527)
============ ============ ============ ============
</TABLE>
* NET OF FOREIGN WITHHOLDING TAXES OF $1,642, $1,001, $1,689, $188, $117,616,
$49, $3 AND $2,749 FOR THE CORE VALUE, EMERGING MARKETS, GLOBAL TECHNOLOGY,
GROWTH, INTERNATIONAL EQUITY, MID-CAP VALUE, RESEARCH AND WORLDWIDE FUNDS,
RESPECTIVELY.
** NET OF CAPITAL GAIN WITHHOLDING TAXES PAID OF $10,330 AND $1,104 FOR THE
INTERNATIONAL EQUITY AND WORLDWIDE FUNDS, RESPECTIVELY.
*** NET OF CHANGE IN CAPITAL GAIN WITHHOLDING TAXES OF $10,962 AND $1,207 FOR
THE INTERNATIONAL EQUITY AND WORLDWIDE FUNDS, RESPECTIVELY.
# COMMENCEMENT OF OPERATIONS ON NOVEMBER 9, 1999.
## COMMENCEMENT OF OPERATIONS ON JANUARY 31, 2000.
### COMMENCEMENT OF OPERATIONS ON JULY 31, 2000.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
MID-CAP SMALL CAP
GROWTH INTERNATIONAL VALUE RESEARCH GROWTH
FUND EQUITY FUND FUND FUND### FUND
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends* $ 139,453 $ 659,052 $ 66,724 $ 2,879 $ 55,973
Interest 53,314 227,678 9,672 2,151 545,399
------------ ------------ ---------- ------------ ------------
192,767 886,730 76,396 5,030 601,372
------------ ------------ ---------- ------------ ------------
Expenses
Management fees (Note 3) 197,666 953,597 38,855 3,718 1,517,935
12b-1 fees (Retail Class) (Note 3) 2,198 18,583 681 0 72,517
12b-1 fees (Admin Class) (Note 3) 0 0 0 0 0
Shareholder service fees (Admin Class) 0 0 0 0 0
Trustees' fees and expenses (Note 3A) 4,432 4,432 4,432 325 4,432
Administrative fees 25,025 72,614 7,882 759 112,027
Custodian and accounting fees 58,810 281,327 69,011 8,641 92,799
Transfer Agent fees (Institutional
Class) (Note 3) 32,724 38,186 25,455 3,558 36,617
Transfer Agent fees (Retail Class) (Note 3) 18,560 21,105 18,672 0 21,588
Transfer Agent fees (Admin Class) (Note 3) 0 0 0 0 0
Audit and tax services fees 20,469 27,268 12,140 15,000 15,640
Registration fees 28,350 30,243 25,338 2,000 36,695
Printing fees 18,138 20,260 2,671 3,000 23,262
Amortization of organization expenses
Institutional Class: (Note 1I) 0 0 0 0 0
Other expenses 12,748 38,311 11,667 2,750 12,365
------------ ------------ ---------- ------------ ------------
Total expenses 419,120 1,505,926 216,804 39,751 1,945,877
Less expenses waived and reimbursed by
the investment adviser (Note 3) (80,890) (215,881) (164,316) (34,050) 0
------------ ------------ ---------- ------------ ------------
Net expenses 338,230 1,290,045 52,488 5,701 1,945,877
------------ ------------ ---------- ------------ ------------
Net investment income (loss) (145,463) (403,315) 23,908 (671) (1,344,505)
------------ ------------ ---------- ------------ ------------
NET REALIZED GAIN (LOSS) ON:
Investments** 10,662,518 29,226,104 71,065 14,798 15,371,710
Foreign currency transactions 0 (139,221) 0 0 0
------------ ------------ ---------- ------------ ------------
Total net realized gain (loss) 10,662,518 29,086,883 71,065 14,798 15,371,710
------------ ------------ ---------- ------------ ------------
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON:
Investments*** 3,038,087 (4,582,497) 602,296 78,294 47,161,814
Foreign currency translations 0 (13,932) 0 0 0
------------ ------------ ---------- ------------ ------------
Total net change in unrealized
appreciation (depreciation) 3,038,087 (4,596,429) 602,296 78,294 47,161,814
------------ ------------ ---------- ------------ ------------
Total net realized gain (loss) and change
in unrealized appreciation
(depreciation) 13,700,605 24,490,454 673,361 93,092 62,533,524
------------ ------------ ---------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 13,555,142 $ 24,087,139 $ 697,269 $ 92,421 $ 61,189,019
============ ============ ========== ============ ============
<PAGE>
<CAPTION>
SMALL CAP
VALUE WORLDWIDE
FUND FUND
-----------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Dividends* $ 4,841,816 $ 44,702
Interest 1,048,543 463,032
------------ ------------
5,890,359 507,734
------------ ------------
Expenses
Management fees (Note 3) 2,616,961 72,088
12b-1 fees (Retail Class) (Note 3) 217,723 898
12b-1 fees (Admin Class) (Note 3) 20,077 0
Shareholder service fees (Admin Class) 20,076 0
Trustees' fees and expenses (Note 3A) 4,432 4,432
Administrative fees 189,352 10,187
Custodian and accounting fees 130,746 80,432
Transfer Agent fees (Institutional
Class) (Note 3) 88,534 23,756
Transfer Agent fees (Retail Class) (Note 3) 15,186 18,451
Transfer Agent fees (Admin Class) (Note 3) 21,693 0
Audit and tax services fees 40,382 10,541
Registration fees 41,492 20,075
Printing fees 71,510 2,780
Amortization of organization expenses
Institutional Class: (Note 1I) 0 904
Other expenses 31,383 11,703
------------ ------------
Total expenses 3,509,547 256,247
Less expenses waived and reimbursed by
the investment adviser (Note 3) (14,490) (159,232)
------------ ------------
Net expenses 3,495,057 97,015
------------ ------------
Net investment income (loss) 2,395,302 410,719
------------ ------------
NET REALIZED GAIN (LOSS) ON:
Investments** 13,210,026 2,613,187
Foreign currency transactions 0 (2,458)
------------ ------------
Total net realized gain (loss) 13,210,026 2,610,729
------------ ------------
CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) ON:
Investments*** 49,620,844 (93,086)
Foreign currency translations 0 (326)
------------ ------------
Total net change in unrealized
appreciation (depreciation) 49,620,844 (93,412)
------------ ------------
Total net realized gain (loss) and change
in unrealized appreciation
(depreciation) 62,830,870 2,517,317
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 65,226,172 $ 2,928,036
============ ============
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 85
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
AGGRESSIVE GROWTH FUND
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
--------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (507,423) $ (38,748)
Net realized gain (loss) 2,866,444 888,317
Change in unrealized appreciation
(depreciation) 30,887,655 2,978,084
------------ -----------
Increase (decrease) in net assets from
operations 33,246,676 3,827,653
------------ -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net realized gain on investments (845,221) (78,445)
RETAIL CLASS
Net realized gain on investments (95,986) (3,177)
ADMIN CLASS
Net realized gain on investments 0 0
------------ -----------
(941,207) (81,622)
------------ -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions 126,398,491 8,579,807
------------ -----------
Total increase (decrease) in net assets 158,703,960 12,325,838
NET ASSETS
Beginning of the period 14,483,708 2,157,870
------------ -----------
End of the period $173,187,668 $14,483,708
============ ===========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 0 $ 0
============ ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
CORE VALUE FUND
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
--------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 453,860 $ 908,118
Net realized gain (loss) (750,571) 7,604,974
Change in unrealized appreciation
(depreciation) 876,221 (989,371)
----------- -----------
Increase (decrease) in net assets from
operations 579,510 7,523,721
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net investment income (632,043) (958,125)
Net realized gain on investments (7,273,628) (7,219,725)
RETAIL CLASS
Net investment income (3,284) (10,283)
Net realized gain on investments (52,997) (100,943)
----------- -----------
(7,961,952) (8,289,076)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions (20,893,844) 153,128
----------- -----------
Total increase (decrease) in net assets (28,276,286) (612,227)
NET ASSETS
Beginning of the period 67,330,522 67,942,749
----------- -----------
End of the period $39,054,236 $67,330,522
=========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 444,955 $ 632,576
=========== ===========
</TABLE>
See accompanying notes to financial statements.
LOOMIS SAYLES EQUITY FUNDS 87
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENT OF CHANGES IN NET ASSETS
EMERGING MARKETS FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
SEPTEMBER 30,
2000*
--------------------------------------------------------------------------------
<S> <C>
FROM OPERATIONS
Net investment income (loss) $ (47,079)
Net realized gain (loss) 532,918
Change in unrealized appreciation
(depreciation) (33,065)
----------
Increase (decrease) in net assets from
operations 452,774
----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions 3,252,573
----------
Redemption fees (Note 1H) 336
----------
Total increase (decrease) in net assets 3,705,683
NET ASSETS
Beginning of the period 0
----------
End of the period $3,705,683
==========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 0
==========
</TABLE>
*COMMENCEMENT OF OPERATIONS, NOVEMBER 9, 1999.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENT OF CHANGES IN NET ASSETS
GLOBAL TECHNOLOGY FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
SEPTEMBER 30,
2000*
--------------------------------------------------------------------------------
<S> <C>
FROM OPERATIONS
Net investment income (loss) $ (100,588)
Net realized gain (loss) (1,517,731)
Change in unrealized appreciation
(depreciation) 1,233,792
-----------
Increase (decrease) in net assets from
operations (384,527)
-----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions 13,746,833
-----------
Total increase (decrease) in net assets 13,362,306
NET ASSETS
Beginning of the period 0
-----------
End of the period $13,362,306
===========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 0
===========
</TABLE>
*COMMENCEMENT OF OPERATIONS, JANUARY 31, 2000.
See accompanying notes to financial statements.
LOOMIS SAYLES EQUITY FUNDS 89
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
GROWTH FUND
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
--------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (145,463) $ (113,365)
Net realized gain (loss) 10,662,518 4,039,815
Change in unrealized appreciation
(depreciation) 3,038,087 3,171,041
----------- -----------
Increase (decrease) in net assets from
operations 13,555,142 7,097,491
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net realized gain on investments (2,609,474) (6,391,595)
RETAIL CLASS
Net realized gain on investments (57,300) (148,336)
ADMIN CLASS
Net realized gain on investments 0 0
----------- -----------
(2,666,774) (6,539,931)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions 6,584,274 3,146,346
----------- -----------
Total increase (decrease) in net assets 17,472,642 3,703,906
NET ASSETS
Beginning of the period 28,883,726 25,179,820
----------- -----------
End of the period $46,356,368 $28,883,726
=========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 0 $ 0
=========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
--------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (403,315) $ 381,954
Net realized gain (loss) 29,086,883 3,798,847
Change in unrealized appreciation
(depreciation) (4,596,429) 16,040,163
------------ -----------
Increase (decrease) in net assets from
operations 24,087,139 20,220,964
------------ -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net investment income (549,601) (829,740)
Net realized gain on investments (5,899,843) (1,229,014)
RETAIL CLASS
Net investment income (3,905) (1,363)
Net realized gain on investments (59,775) (2,608)
ADMIN CLASS
Net investment income 0 0
Net realized gain on investments 0 0
------------ -----------
(6,513,124) (2,062,725)
------------ -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions 16,129,186 (7,095,776)
------------ -----------
Total increase (decrease) in net assets 33,703,201 11,062,463
NET ASSETS
Beginning of the period 79,676,518 68,614,055
------------ -----------
End of the period $113,379,719 $79,676,518
============ ===========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 0 $ 376,798
============ ===========
</TABLE>
See accompanying notes to financial statements.
LOOMIS SAYLES EQUITY FUNDS 91
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
MID-CAP VALUE FUND
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
--------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 23,908 $ 12,375
Net realized gain (loss) 71,065 146,067
Change in unrealized appreciation
(depreciation) 602,296 282,048
---------- ----------
Increase (decrease) in net assets from
operations 697,269 440,490
---------- ----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net investment income (12,210) (8,319)
Net realized gain on investments (188,753) (113,579)
RETAIL CLASS
Net realized gain on investments (9,687) (6,713)
---------- ----------
(210,650) (128,611)
---------- ----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions (748,228) 1,569,205
---------- ----------
Total increase (decrease) in net assets (261,609) 1,881,084
NET ASSETS
Beginning of the period 5,292,391 3,411,307
---------- ----------
End of the period $5,030,782 $5,292,391
========== ==========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 23,093 $ 12,079
========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
RESEARCH FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
SEPTEMBER 30,
2000*
--------------------------------------------------------------------------------
<S> <C>
FROM OPERATIONS
Net investment income (loss) $ (671)
Net realized gain (loss) 14,798
Change in unrealized appreciation
(depreciation) 78,294
-----------
Increase (decrease) in net assets from
operations 92,421
-----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions 3,417,087
-----------
Total increase (decrease) in net assets 3,509,508
NET ASSETS
Beginning of the period 0
-----------
End of the period $ 3,509,508
===========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 0
===========
</TABLE>
*COMMENCEMENT OF OPERATIONS, JULY 31, 2000.
See accompanying notes to financial statements.
LOOMIS SAYLES EQUITY FUNDS 93
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
SMALL CAP GROWTH FUND
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
--------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (1,344,505) $ (412,157)
Net realized gain (loss) 15,371,710 103,100
Change in unrealized appreciation
(depreciation) 47,161,814 23,516,010
------------ -----------
Increase (decrease) in net assets from
operations 61,189,019 23,206,953
------------ -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions 183,209,242 45,726,592
------------ -----------
Total increase (decrease) in net assets 244,398,261 68,933,545
NET ASSETS
Beginning of the period 87,164,735 18,231,190
------------ -----------
End of the period $331,562,996 $87,164,735
============ ===========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 0 $ 0
============ ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
SMALL CAP VALUE FUND
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
--------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 2,395,302 $ 3,181,087
Net realized gain (loss) 13,210,026 19,210,781
Change in unrealized appreciation
(depreciation) 49,620,844 22,519,267
------------ ------------
Increase (decrease) in net assets from
operations 65,226,172 44,911,135
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net investment income (2,390,731) (2,285,967)
Net realized gain on investments (4,531,443) (2,569,352)
RETAIL CLASS
Net investment income (452,153) (290,949)
Net realized gain on investments (1,335,295) (520,647)
ADMIN CLASS
Net investment income (14,051) (3,054)
Net realized gain on investments (91,184) (14,831)
------------ ------------
(8,814,857) (5,684,800)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions (119,065,673) (8,787,045)
------------ ------------
Total increase (decrease) in net assets (62,654,358) 30,439,290
NET ASSETS
Beginning of the period 381,661,935 351,222,645
------------ ------------
End of the period $319,007,577 $381,661,935
============ ============
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 2,339,761 $ 3,255,170
============ ============
</TABLE>
See accompanying notes to financial statements.
LOOMIS SAYLES EQUITY FUNDS 95
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
WORLDWIDE FUND
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
--------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 410,719 $ 303,174
Net realized gain (loss) 2,610,729 256,417
Change in unrealized appreciation
(depreciation) (93,412) 830,774
----------- ----------
Increase (decrease) in net assets from
operations 2,928,036 1,390,365
----------- ----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net investment income (298,668) (246,147)
Net realized gain on investments (283,232) (217,254)
RETAIL CLASS
Net investment income (5,792) (3,706)
Net realized gain on investments (5,908) (3,459)
----------- ----------
(593,600) (470,566)
----------- ----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
Increase (decrease) in net assets
from capital share transactions 1,920,513 471,820
----------- ----------
Total increase (decrease) in net assets 4,254,949 1,391,619
NET ASSETS
Beginning of the period 6,371,949 4,980,330
----------- ----------
End of the period $10,626,898 $6,371,949
=========== ==========
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 346,942 $ 215,169
=========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
LOOMIS SAYLES EQUITY FUNDS 97
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
AGGRESSIVE GROWTH FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
---------------------------------------------
NINE MONTHS
ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
------------------------ -------------
2000 1999 1998
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 20.08 $ 10.51 $ 11.49
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.26)(d) (0.09)(d) (0.03)
Net realized and unrealized gain (loss) on investments 29.11 10.05 (0.95)
----------- ----------- -----------
Total from investment operations 28.85 9.96 (0.98)
----------- ----------- -----------
LESS DISTRIBUTIONS--
Distributions in excess of net investment income 0.00 0.00 0.00
Distributions from net realized capital gains (1.22) (0.39) 0.00
----------- ----------- -----------
Total distributions (1.22) (0.39) 0.00
----------- ----------- -----------
Net asset value, end of period $ 47.71 $ 20.08 $ 10.51
=========== =========== ===========
Total return (%)(a) 147.8 97.9 (8.5)
Net assets, end of period (000) $ 62,364 $ 13,308 $ 2,073
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00 1.00
Gross expenses (%)(c) 1.11 2.96 7.13
Net investment income (loss) (%)(c) (0.66) (0.56) (0.35)
Portfolio turnover rate (%) 191 199 82
</TABLE>
* FROM COMMENCEMENT OF FUND OPERATIONS ON JANUARY 2, 1997 THROUGH
DECEMBER 31,1997.
** FROM COMMENCEMENT OF CLASS OPERATIONS ON JULY 31, 2000 THROUGH
SEPTEMBER 30, 2000.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS
ADVISORY FEES AND/OR BORNE OTHER OPERATING EXPENSES. PERIODS LESS THAN ONE
YEAR ARE NOT ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) PER SHARE NET INVESTMENT INCOME HAS BEEN DETERMINED ON THE BASIS OF THE
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD.
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL
CLASS RETAIL CLASS
------------- --------------------------------------------------
NINE MONTHS
PERIOD ENDED ENDED
DECEMBER 31, YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
------------ ------------------------ -------------
1997* 2000 1999 1998
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.00 $ 19.99 $ 10.49 $ 11.49
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.03) (0.38)(d) (0.14)(d) (0.05)
Net realized and unrealized gain (loss) on investments 2.26 28.94 10.03 (0.95)
----------- ----------- ----------- -----------
Total from investment operations 2.23 28.56 9.89 (1.00)
----------- ----------- ----------- -----------
LESS DISTRIBUTIONS--
Distributions in excess of net investment income (0.12) 0.00 0.00 0.00
Distributions from net realized capital gains (0.62) (1.22) (0.39) 0.00
----------- ----------- ----------- -----------
Total distributions (0.74) (1.22) (0.39) 0.00
----------- ----------- ----------- -----------
Net asset value, end of period $ 11.49 $ 47.33 $ 19.99 $ 10.49
=========== =========== =========== ===========
Total return (%)(a) 22.7 147.0 97.5 (8.7)
Net assets, end of period (000) $ 1,848 $ 110,824 $ 1,175 $ 85
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.25 1.25 1.25
Gross expenses (%)(c) 9.35 1.35 9.05 27.97
Net investment income (loss) (%)(c) (0.38) (0.89) (0.80) (0.60)
Portfolio turnover rate (%) 174 191 199 82
<CAPTION>
ADMIN
CLASS
------------- -------------
PERIOD ENDED PERIOD ENDED
DECEMBER 31, SEPTEMBER 30,
------------ -------------
1997* 2000**
------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 10.00 $ 40.38
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.06) (0.09)(d)
Net realized and unrealized gain (loss) on investments 2.27 7.02
----------- -----------
Total from investment operations 2.21 6.93
----------- -----------
LESS DISTRIBUTIONS--
Distributions in excess of net investment income (0.10) 0.00
Distributions from net realized capital gains (0.62) 0.00
----------- -----------
Total distributions (0.72) 0.00
----------- -----------
Net asset value, end of period $ 11.49 $ 47.31
=========== ===========
Total return (%)(a) 22.4 17.2
Net assets, end of period (000) $ 74 $ 0
Ratios to average net assets:
Net expenses (%)(b)(c) 1.25 1.50
Gross expenses (%)(c) 36.58 1.60
Net investment income (loss) (%)(c) (0.67) (1.14)
Portfolio turnover rate (%) 174 191
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 99
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
CORE VALUE FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
----------------------------------------
NINE MONTHS
ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
------------------------ -------------
2000 1999 1998
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 16.54 $ 16.85 $ 17.64
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS -
Net investment income (loss) 0.17 0.22 0.18
Net realized and unrealized gain (loss) on investments 0.41 1.53 (0.97)
---------- ---------- ----------
Total from investment operations 0.58 1.75 (0.79)
---------- ---------- ----------
LESS DISTRIBUTIONS -
Dividends from net investment income (0.15) (0.24) 0.00
Distributions from net realized capital gains (1.85) (1.82) 0.00
---------- ---------- ----------
Total distributions (2.00) (2.06) 0.00
---------- ---------- ----------
Net asset value, end of period $ 15.12 $ 16.54 $ 16.85
========== ========== ==========
Total return (%)(a) 3.6 10.5 (4.5)
Net assets, end of period (000) $ 38,792 $ 66,726 $ 66,928
Ratios to average net assets:
Net expenses (%)(b)(c) 0.85 0.78 0.79
Gross expenses (%)(c) 0.89 0.78 0.79
Net investment income (loss) (%)(c) 0.87 1.20 1.36
Portfolio turnover rate (%) 73 59 49
</TABLE>
* FROM COMMENCEMENT OF CLASS OPERATIONS ON JANUARY 2, 1997 THROUGH
DECEMBER 31, 1997.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS
ADVISORY FEES AND/OR BORNE OTHER OPERATING EXPENSES. PERIODS LESS THAN ONE
YEAR ARE NOT ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) PER SHARE NET INVESTMENT INCOME HAS BEEN DETERMINED ON THE BASIS OF THE
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD.
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
--------------------------------------
YEAR ENDED DECEMBER 31,
--------------------------------------
1997 1996 1995
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 15.60 $ 14.57 $ 11.80
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS -
Net investment income (loss) 0.18 0.22 0.23
Net realized and unrealized gain (loss) on investments 4.32 2.83 3.93
---------- ---------- ----------
Total from investment operations 4.50 3.05 4.16
---------- ---------- ----------
LESS DISTRIBUTIONS -
Dividends from net investment income (0.19) (0.22) (0.23)
Distributions from net realized capital gains (2.27) (1.80) (1.16)
---------- ---------- ----------
Total distributions (2.46) (2.02) (1.39)
---------- ---------- ----------
Net asset value, end of period $ 17.64 $ 15.60 $ 14.57
========== ========== ==========
Total return (%)(a) 29.2 21.2 35.2
Net assets, end of period (000) $ 63,303 $ 43,715 $ 36,465
Ratios to average net assets:
Net expenses (%)(b)(c) 0.84 1.13 1.20
Gross expenses (%)(c) 0.84 1.13 1.20
Net investment income (loss) (%)(c) 1.12 1.44 1.61
Portfolio turnover rate (%) 64 58 60
<CAPTION>
RETAIL CLASS
---------------------------------------------------------------
NINE MONTHS
ENDED PERIOD ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
------------------------ ------------- --------------
2000 1999 1998 1997*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.48 $ 16.79 $ 17.62 $ 15.60
---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS -
Net investment income (loss) 0.16 0.18 0.15(d) 0.15(d)
Net realized and unrealized gain (loss) on investments 0.38 1.52 (0.98) 4.30
---------- ---------- ---------- ----------
Total from investment operations 0.54 1.70 (0.83) 4.45
---------- ---------- ---------- ----------
LESS DISTRIBUTIONS -
Dividends from net investment income (0.10) (0.19) 0.00 (0.16)
Distributions from net realized capital gains (1.85) (1.82) 0.00 (2.27)
---------- ---------- ---------- ----------
Total distributions (1.95) (2.01) 0.00 (2.43)
---------- ---------- ---------- ----------
Net asset value, end of period $ 15.07 $ 16.48 $ 16.79 $ 17.62
========== ========== ========== ==========
Total return (%)(a) 3.4 10.2 (4.7) 28.9
Net assets, end of period (000) $ 262 $ 605 $ 1,015 $ 1,324
Ratios to average net assets:
Net expenses (%)(b)(c) 1.10 1.10 1.10 1.10
Gross expenses (%)(c) 5.87 3.35 2.20 6.17
Net investment income (loss) (%)(c) 0.60 0.88 1.07 0.84
Portfolio turnover rate (%) 73 59 49 64
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 101
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
EMERGING MARKETS FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS RETAIL CLASS
------------------- ------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2000* 2000**
----------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $10.00 $16.21
------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.22)(d) (0.14)(d)
Net realized and unrealized gain (loss)
on investments 5.08 (1.26)
------ ------
Total from investment operations 4.86 (1.40)
------ ------
LESS DISTRIBUTIONS--
Dividends from net investment income 0.00 0.00
Distributions from net realized capital gains 0.00 0.00
------ ------
Total distributions 0.00 0.00
------ ------
Net asset value, end of period $14.86 $14.81
====== ======
Total return (%)(a) 48.6 (8.6)
Net assets, end of period (000) $3,679 $ 27
Ratios to average net assets:
Net expenses (%)(b)(c) 2.25 2.50
Gross expenses (%)(c) 6.20 70.10
Net investment income (loss) (%)(c) (1.46) (2.20)
Portfolio turnover rate (%) 134 134
</TABLE>
* FROM COMMENCEMENT OF FUND OPERATIONS ON NOVEMBER 9, 1999.
** FROM COMMENCEMENT OF CLASS OPERATIONS ON MAY 9, 2000.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER OPERATING EXPENSES. PERIODS LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) PER SHARE INVESTMENT INCOME HAS BEEN DETERMINED ON THE BASIS OF THE WEIGHTED
AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
GLOBAL TECHNOLOGY FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS RETAIL CLASS
------------------- ------------
PERIOD PERIOD
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2000* 2000*
----------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $10.00 $10.00
------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.08) (0.11)
Net realized and unrealized gain (loss)
on investments 2.78 2.70
------ ------
Total from investment operations 2.70 2.59
------ ------
LESS DISTRIBUTIONS--
Dividends from net investment income 0.00 0.00
Distributions from net realized capital gains 0.00 0.00
------ ------
Total distributions 0.00 0.00
------ ------
Net asset value, end of period $12.70 $12.59
====== ======
Total return (%)(a) 27.0 25.9
Net assets, end of period (000) $7,678 $5,685
Ratios to average net assets:
Net expenses (%)(b)(c) 1.50 1.75
Gross expenses (%)(c) 3.37 3.44
Net investment income (loss) (%)(c) (1.13) (1.40)
Portfolio turnover rate (%) 181 181
</TABLE>
* FROM COMMENCEMENT OF FUND OPERATIONS ON JANUARY 31, 2000.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER OPERATING EXPENSES. PERIODS LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
LOOMIS SAYLES EQUITY FUNDS 103
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
GROWTH FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
-----------------------------------------
NINE MONTHS
YEAR ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------ -------------
2000 1999 1998
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.17 $ 11.65 $ 12.63
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.05) (0.04) (0.03)
Net realized and unrealized gain (loss)
on investments 4.90 3.01 (0.95)
---------- ---------- ----------
Total from investment operations 4.85 2.97 (0.98)
---------- ---------- ----------
LESS DISTRIBUTIONS--
Dividends from net investment income 0.00 0.00 0.00
Distributions from net realized capital gains (1.02) (3.45) 0.00
---------- ---------- ----------
Total distributions (1.02) (3.45) 0.00
---------- ---------- ----------
Net asset value, end of period $ 15.00 $ 11.17 $ 11.65
========== ========== ==========
Total return (%)(a) 45.6 30.9 (7.8)
Net assets, end of period (000) $ 45,328 $ 28,235 $ 24,663
Ratios to average net assets:
Net expenses (%)(b)(c) 0.85 0.85 0.85
Gross expenses (%)(c) 1.01 1.18 1.02
Net investment income (loss) (%)(c) (0.36) (0.40) (0.32)
Portfolio turnover rate (%) 203 164 118
</TABLE>
* FROM COMMENCEMENT OF CLASS OPERATIONS ON JANUARY 2, 1997 THROUGH
DECEMBER 31, 1997.
** FROM COMMENCEMENT OF CLASS OPERATIONS ON JULY 31, 2000 THROUGH
SEPTEMBER 30, 2000.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER OPERATING EXPENSES. PERIODS LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
--------------------------------------
YEAR ENDED
DECEMBER 31,
--------------------------------------
1997 1996 1995
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 13.44 $ 15.27 $ 12.50
---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.04) (0.07) 0.00
Net realized and unrealized gain (loss)
on investments 3.17 3.08 3.86
---------- ---------- ----------
Total from investment operations 3.13 3.01 3.86
---------- ---------- ----------
LESS DISTRIBUTIONS--
Dividends from net investment income 0.00 0.00 0.00
Distributions from net realized capital gains (3.94) (4.84) (1.09)
---------- ---------- ----------
Total distributions (3.94) (4.84) (1.09)
---------- ---------- ----------
Net asset value, end of period $ 12.63 $ 13.44 $ 15.27
========== ========== ==========
Total return (%)(a) 24.5 19.9 30.9
Net assets, end of period (000) $ 32,149 $ 39,497 $ 45,011
Ratios to average net assets:
Net expenses (%)(b)(c) 0.85 1.10 1.08
Gross expenses (%)(c) 0.98 1.10 1.08
Net investment income (loss) (%)(c) (0.26) (0.47) (0.29)
Portfolio turnover rate (%) 116 99 48
<CAPTION>
RETAIL CLASS ADMIN CLASS
------------------------------------------------------- --------------
NINE MONTHS PERIOD PERIOD
YEAR ENDED ENDED ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
------------------------ ------------- ------------ --------------
2000 1999 1998 1997* 2000**
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.06 $ 11.59 $ 12.59 $ 13.44 $ 14.09
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.07) (0.06) (0.03) (0.07) (0.02)
Net realized and unrealized gain (loss)
on investments 4.83 2.98 (0.97) 3.16 0.72
---------- ---------- ---------- ---------- ----------
Total from investment operations 4.76 2.92 (1.00) 3.09 0.70
---------- ---------- ---------- ---------- ----------
LESS DISTRIBUTIONS--
Dividends from net investment income 0.00 0.00 0.00 0.00 0.00
Distributions from net realized capital gains (1.02) (3.45) 0.00 (3.94) 0.00
---------- ---------- ---------- ---------- ----------
Total distributions (1.02) (3.45) 0.00 (3.94) 0.00
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 14.80 $ 11.06 $ 11.59 $ 12.59 $ 14.79
========== ========== ========== ========== ==========
Total return (%)(a) 45.3 30.6 (7.9) 24.2 5.0
Net assets, end of period (000) $ 1,028 $ 649 $ 516 $ 194 $ 0
Ratios to average net assets:
Net expenses (%)(b)(c) 1.10 1.10 1.10 1.10 1.35
Gross expenses (%)(c) 3.29 4.43 4.74 12.96 1.50
Net investment income (loss) (%)(c) (0.61) (0.65) (0.58) (0.42) (0.87)
Portfolio turnover rate (%) 203 164 118 116 203
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 105
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
----------------------------------------------
NINE MONTHS
YEAR ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------------- -------------
2000 1999 1998
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 13.79 $ 10.74 $ 11.30
----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.06)(d) 0.07 0.14
Net realized and unrealized gain (loss) on
investments 4.77 3.31 (0.70)
----------- ----------- -----------
Total from investment operations 4.71 3.38 (0.56)
----------- ----------- -----------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.09) (0.13) 0.00
Distributions from net realized capital gains (1.00) (0.20) 0.00
----------- ----------- -----------
Total distributions (1.09) (0.33) 0.00
----------- ----------- -----------
Net asset value, end of period $ 17.41 $ 13.79 $ 10.74
=========== =========== ===========
Total return (%)(a) 34.4 32.0 (5.0)
Net assets, end of period (000) $ 107,792 $ 79,415 $ 68,464
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00 1.00
Gross expenses (%)(c) 1.15 1.22 1.18
Net investment income (loss) (%)(c) (0.32) 0.53 1.49
Portfolio turnover rate (%) 226 207 96
</TABLE>
* FROM COMMENCEMENT OF CLASS OPERATIONS ON JANUARY 2, 1997 THROUGH
DECEMBER 31, 1997.
** FROM COMMENCEMENT OF CLASS OPERATIONS ON JULY 31, 2000 THROUGH
SEPTEMBER 30, 2000.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER OPERATING EXPENSES.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) PER SHARE NET INVESTMENT INCOME HAS BEEN DETERMINED ON THE BASIS OF THE
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD.
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
--------------------------------------------
YEAR ENDED
DECEMBER 31,
--------------------------------------------
1997 1996 1995
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 13.16 $ 11.65 $ 11.61
----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.15(d) 0.12 0.14
Net realized and unrealized gain (loss) on
investments (0.27) 2.01 0.87
----------- ----------- -----------
Total from investment operations (0.12) 2.13 1.01
----------- ----------- -----------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.19) (0.09) (0.14)
Distributions from net realized capital gains (1.55) (0.53) (0.83)
----------- ----------- -----------
Total distributions (1.74) (0.62) (0.97)
----------- ----------- -----------
Net asset value, end of period $ 11.30 $ 13.16 $ 11.65
=========== =========== ===========
Total return (%)(a) (1.0) 18.3 8.7
Net assets, end of period (000) $ 82,188 $ 90,662 $ 79,488
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.42 1.45
Gross expenses (%)(c) 1.16 1.42 1.45
Net investment income (loss) (%)(c) 1.12 0.96 1.16
Portfolio turnover rate (%) 119 151 133
<CAPTION>
RETAIL CLASS ADMIN CLASS
--------------------------------------------------------- -------------
NINE MONTHS PERIOD PERIOD
YEAR ENDED ENDED ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
-------------------------- ------------- ------------ -------------
2000 1999 1998 1997* 2000**
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.73 $ 10.70 $ 11.28 $ 13.16 $ 17.62
---------- ----------- ----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.05)(d) 0.05 0.10 0.10(d) (0.02)(d)
Net realized and unrealized gain (loss) on
investments 4.67 3.28 (0.68) (0.26) (0.30)
---------- ----------- ----------- ----------- -----------
Total from investment operations 4.62 3.33 (0.58) (0.16) (0.32)
---------- ----------- ----------- ----------- -----------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.04) (0.10) 0.00 (0.17) 0.00
Distributions from net realized capital gains (1.00) (0.20) 0.00 (1.55) 0.00
---------- ----------- ----------- ----------- -----------
Total distributions (1.04) (0.30) 0.00 (1.72) 0.00
---------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 17.31 $ 13.73 $ 10.70 $ 11.28 $ 17.30
========== =========== =========== =========== ===========
Total return (%)(a) 33.9 31.6 (5.1) (1.3) (1.8)
Net assets, end of period (000) $ 5,588 $ 261 $ 150 $ 233 $ 0
Ratios to average net assets:
Net expenses (%)(b)(c) 1.25 1.25 1.25 1.25 1.50
Gross expenses (%)(c) 1.67 12.33 10.26 16.24 1.77
Net investment income (loss) (%)(c) (0.26) 0.29 1.16 0.73 (0.83)
Portfolio turnover rate (%) 226 207 96 119 226
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 107
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
MID-CAP VALUE FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
2000 1999
---------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $10.99 $10.09
------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.06 0.03
Net realized an unrealized gain (loss) on investments 1.47 1.26
------ ------
Total from investment operations 1.53 1.29
------ ------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.03) (0.03)
Distributions from net realized capital gains (0.43) (0.36)
------ ------
Total distributions (0.46) (0.39)
------ ------
Net asset value, end of period $12.06 $10.99
====== ======
Total return (%)(a) 14.2 12.9
Net assets, end of period (000) $4,738 $5,062
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00
Gross expenses (%)(c) 3.84 4.01
Net investment income (loss) (%)(c) 0.48 0.28
Portfolio turnover rate (%) 208 232
</TABLE>
* FROM COMMENCEMENT OF FUND OPERATIONS ON JANUARY 2, 1997 THROUGH
DECEMBER 31,1997.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER OPERATING EXPENSES. PERIODS LESS THAN ONE YEAR
ARE NOT ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
---------------------------
NINE MONTHS
ENDED PERIOD ENDED
SEPTEMBER 30, DECEMBER 31,
------------- ------------
1998 1997*
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $11.53 $10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.02 0.07
Net realized an unrealized gain (loss) on investments (1.46) 2.54
------- -------
Total from investment operations (1.44) 2.61
------- -------
LESS DISTRIBUTIONS--
Dividends from net investment income 0.00 (0.14)
Distributions from net realized capital gains 0.00 (0.94)
------- -------
Total distributions 0.00 (1.08)
------- -------
Net asset value, end of period $10.09 $11.53
======= =======
Total return (%)(a) (12.5) 26.3
Net assets, end of period (000) $3,291 $3,736
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00
Gross expenses (%)(c) 4.33 6.65
Net investment income (loss) (%)(c) 0.22 0.74
Portfolio turnover rate (%) 225 130
<CAPTION>
RETAIL CLASS
--------------------------------------------------
NINE MONTHS
YEAR ENDED ENDED PERIOD ENDED
SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
------------------ -------------- -----------
2000 1999 1998 1997*
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.96 $10.07 $11.53 $10.00
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.03 0.00 (0.01) 0.03
Net realized an unrealized gain (loss) on investments 1.46 1.25 (1.45) 2.55
-------- -------- -------- --------
Total from investment operations 1.49 1.25 (1.46) 2.58
-------- -------- -------- --------
LESS DISTRIBUTIONS--
Dividends from net investment income 0.00 0.00 0.00 (0.11)
Distributions from net realized capital gains (0.43) (0.36) 0.00 (0.94)
-------- -------- -------- --------
Total distributions (0.43) (0.36) 0.00 (1.05)
-------- -------- -------- --------
Net asset value, end of period $12.02 $10.96 $10.07 $11.53
======== ======== ======== ========
Total return (%)(a) 13.9 12.5 (12.7) 26.0
Net assets, end of period (000) $ 293 $ 231 $ 121 $ 168
Ratios to average net assets:
Net expenses (%)(b)(c) 1.25 1.25 1.25 1.25
Gross expenses (%)(c) 10.43 13.62 13.31 27.99
Net investment income (loss) (%)(c) 0.23 (0.02) (0.03) 0.42
Portfolio turnover rate (%) 208 232 225 130
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 109
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
RESEARCH FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
-------------------
PERIOD
ENDED
SEPTEMBER 30,
-------------
2000*
-------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $10.00
------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.00
Net realized and unrealized gain (loss) on investments 0.54
------
Total from investment operations 0.54
------
LESS DISTRIBUTIONS--
Dividends from net investment income 0.00
Distributions from net realized capital gains 0.00
------
Total distributions 0.00
------
Net asset value, end of period $10.54
======
Total return (%)(a) 5.4
Net assets, end of period (000) $3,510
Ratios to average net assets:
Net expenses (%)(b)(c) 1.15
Gross expenses (%)(c) 8.02
Net investment income (loss) (%)(c) (0.14)
Portfolio turnover rate (%) 20
</TABLE>
* COMMENCEMENT OF FUND OPERATIONS ON JULY 31, 2000.
(a) TOTAL RETURN WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER OPERATING EXPENSES. PERIODS LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
LOOMIS SAYLES EQUITY FUNDS 111
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
SMALL CAP GROWTH FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
-----------------------------------------------------
NINE MONTHS PERIOD
ENDED ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
------------------------ ------------- ------------
2000 1999 1998 1997*
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $16.74 $9.83 $11.32 $10.00
-------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.16)(d) (0.08) (0.02) (0.07)(d)
Net realized and unrealized gain (loss)
on investments 10.40 6.99 (1.47) 1.99
-------- -------- -------- --------
Total from investment operations 10.24 6.91 (1.49) 1.92
-------- -------- -------- --------
LESS DISTRIBUTIONS--
Distributions in excess of net
investment income 0.00 0.00 0.00 (0.01)
Distributions in excess of
net realized capital gains 0.00 0.00 0.00 (0.59)
-------- -------- -------- --------
Total distributions 0.00 0.00 0.00 (0.60)
-------- -------- -------- --------
Net asset value, end of period $26.98 $16.74 $9.83 $11.32
======== ======== ======== ========
Total return (%)(a) 61.2 70.3 (13.2) 19.4
Net assets, end of period (000) $262,147 $81,132 $17,174 $3,893
Ratios to average net assets:
Net expenses (%)(b)(c) 0.92 1.00 1.00 1.00
Gross expenses (%)(c) 0.92 1.11 2.15 5.81
Net investment income (loss) (%)(c) (0.62) (0.80) (0.53) (0.65)
Portfolio turnover rate (%) 170 163 116 211
</TABLE>
* FROM COMMENCEMENT OF FUND OPERATIONS ON JANUARY 2, 1997 THROUGH DECEMBER 31,
1997.
** FROM COMMENCEMENT OF CLASS OPERATIONS ON JULY 31, 2000 THROUGH SEPTEMBER 30,
2000.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER OPERATING EXPENSES. PERIODS LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) PER SHARE NET INVESTMENT INCOME HAS BEEN DETERMINED ON THE BASIS OF THE
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD.
<PAGE>
<TABLE>
<CAPTION>
RETAIL CLASS ADMIN CLASS
------------------------------------------------------- -------------
NINE MONTHS PERIOD PERIOD
ENDED ENDED ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
-------------------------- ------------- ------------ -------------
2000 1999 1998 1997* 2000**
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.65 $ 9.80 $11.30 $10.00 $23.67
-------- ------- ------- ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.24)(d) (0.08) (0.08) (0.10)(d) (0.05)(d)
Net realized and unrealized gain (loss)
on investments 10.33 6.93 (1.42) 1.99 3.11
-------- ------- ------- ------ ------
Total from investment operations 10.09 6.85 (1.50) 1.89 3.06
-------- ------- ------- ------ ------
LESS DISTRIBUTIONS--
Distributions in excess of net
investment income 0.00 0.00 0.00 0.00 0.00
Distributions in excess of
net realized capital gains 0.00 0.00 0.00 (0.59) 0.00
-------- ------- ------- ------ ------
Total distributions 0.00 0.00 0.00 (0.59) 0.00
-------- ------- ------- ------ ------
Net asset value, end of period $ 26.74 $16.65 $ 9.80 $11.30 $26.73
======== ======= ======= ====== ======
Total return (%)(a) 60.6 69.9 (13.3) 19.2 12.9
Net assets, end of period (000) $69,416 $6,032 $1,057 $1,139 $ 0
Ratios to average net assets:
Net expenses (%)(b)(c) 1.23 1.25 1.25 1.25 1.50
Gross expenses (%)(c) 1.23 1.80 3.70 7.82 1.50
Net investment income (loss) (%)(c) (0.92) (1.04) (0.80) (0.94) (1.16)
Portfolio turnover rate (%) 170 163 116 211 170
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 113
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
SMALL CAP VALUE FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
----------------------------------------------------------------------
NINE MONTHS
ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, YEAR ENDED DECEMBER 31,
------------------------ ------------- ----------------------------
2000 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.33 $ 15.60 $ 18.62 $ 17.39 $ 15.33 $ 12.86
-------- -------- -------- -------- -------- -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.14(d) 0.16 0.12 0.17 0.11 0.04
Net realized and unrealized gain
(loss) on investments 3.36 1.83 (3.14) 4.26 4.47 4.06
-------- -------- -------- -------- -------- -------
Total from investment operations 3.50 1.99 (3.02) 4.43 4.58 4.10
-------- -------- -------- -------- -------- -------
LESS DISTRIBUTIONS--
Dividends from net investment
income (0.14) (0.12) 0.00 (0.15) (0.11) (0.04)
Distributions from net realized
capital gains (0.27) (0.14) 0.00 (3.05) (2.41) (1.59)
-------- -------- -------- -------- -------- -------
Total distributions (0.41) (0.26) 0.00 (3.20) (2.52) (1.63)
-------- -------- -------- -------- -------- -------
Net asset value, end of period $ 20.42 $ 17.33 $ 15.60 $ 18.62 $ 17.39 $ 15.33
======== ======== ======== ======== ======== =======
Total return (%)(a) 20.7 12.8 (16.2) 26.0 30.4 32.1
Net assets, end of period (000) $214,919 $301,496 $296,116 $245,177 $163,625 $90,455
Ratios to average net assets:
Net expenses (%)(b)(c) 0.93 0.90 0.92 0.94 1.19 1.25
Gross expenses (%)(c) 0.93 0.90 0.92 0.94 1.19 1.25
Net investment income (loss)(%)(c) 0.76 0.87 1.04 0.97 0.80 0.29
Portfolio turnover rate (%) 102 113 78 94 73 155
* FROM COMMENCEMENT OF CLASS OPERATIONS ON JANUARY 2, 1997 THROUGH DECEMBER
31, 1997.
** FROM COMMENCEMENT OF CLASS OPERATIONS ON JANUARY 2, 1998 THROUGH SEPTEMBER
30, 1998.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS
ADVISORY FEES AND/OR BORNE OTHER OPERATING EXPENSES. PERIODS LESS THAN ONE
YEAR ARE NOT ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) PER SHARE NET INVESTMENT INCOME HAS BEEN DETERMINED ON THE BASIS OF THE
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD.
<PAGE>
<CAPTION>
RETAIL CLASS ADMIN CLASS
--------------------------------------------------- ---------------------------------------
NINE MONTHS PERIOD
ENDED PERIOD ENDED ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31, YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
------------------------ ------------- ------------ ------------------------ ------------
2000 1999 1998 1997* 2000 1999 1998**
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.28 $ 15.57 $ 18.62 $ 17.39 $ 17.24 $15.54 $18.62
------- ------- ------- ------- ------- ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.10(d) 0.09 0.10 0.15(d) 0.04(d) 0.04 0.03
Net realized and unrealized gain
(loss) on investments 3.36 1.84 (3.15) 4.21 3.37 1.83 (3.11)
------- ------- ------- ------- ------- ------ ------
Total from investment operations 3.46 1.93 (3.05) 4.36 3.41 1.87 (3.08)
------- ------- ------- ------- ------- ------ ------
LESS DISTRIBUTIONS--
Dividends from net investment
income (0.09) (0.08) 0.00 (0.08) (0.04) (0.03) 0.00
Distributions from net realized
capital gains (0.27) (0.14) 0.00 (3.05) (0.27) (0.14) 0.00
------- ------- ------- ------- ------- ------ ------
Total distributions (0.36) (0.22) 0.00 (3.13) (0.31) (0.17) 0.00
------- ------- ------- ------- ------- ------ ------
Net asset value, end of period $ 20.38 $ 17.28 $ 15.57 $ 18.62 $ 20.34 $17.24 $15.54
======= ======= ======= ======= ======= ====== ======
Total return (%)(a) 20.4 12.4 (16.4) 25.6 20.1 12.0 (16.5)
Net assets, end of period (000) $92,698 $75,302 $54,060 $34,353 $11,391 $4,863 $1,046
Ratios to average net assets:
Net expenses (%)(b)(c) 1.17 1.20 1.19 1.25 1.50 1.50 1.50
Gross expenses (%)(c) 1.17 1.20 1.19 1.35 1.68 1.70 3.99
Net investment income (loss)(%)(c) 0.53 0.57 0.79 0.79 0.21 0.30 0.95
Portfolio turnover rate (%) 102 113 78 94 102 113 78
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 115
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
WORLDWIDE FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
----------------------------------------------------------------------
NINE MONTHS PERIOD
ENDED YEAR ENDED ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
------------------------ ------------- ------------ ------------
2000 1999 1998 1997 1996
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.28 $ 8.79 $ 9.86 $10.63 $10.00
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.58(d) 0.50 0.33 0.47 0.30
Net realized and unrealized gain
(loss) on investments 4.02 1.82 (1.40) (0.10) 0.63
------ ------ ------ ------ ------
Total from investment operations 4.60 2.32 (1.07) 0.37 0.93
------ ------ ------ ------ ------
LESS DISTRIBUTIONS--
Dividends from net investment
income (0.48) (0.44) 0.00 (0.47) (0.30)
Distributions from net realized
capital gains (0.47) (0.39) 0.00 (0.67) 0.00
------ ------ ------ ------ ------
Total distributions (0.95) (0.83) 0.00 (1.14) (0.30)
------ ------ ------ ------ ------
Net asset value, end of period $13.93 $10.28 $ 8.79 $ 9.86 $10.63
====== ====== ====== ====== ======
Total return (%)(a) 46.5 27.8 (10.9) 3.5 9.2
Net assets, end of period (000) $9,748 $6,233 $4,907 $5,597 $5,189
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00 1.00 1.00 1.00
Gross expenses (%)(c) 2.48 3.46 3.28 2.62 3.72
Net investment income (loss) (%)(c) 4.26 5.07 4.37 3.89 4.62
Portfolio turnover rate (%) 183 165 93 134 76
* From commencement of class operations on May 1, 1996 through December 31,
1996.
** From commencement of class operations on January 2, 1997 through
December 31, 1997.
(a) Total returns would have been lower had the adviser not reduced its advisory
fees and/or borne other operating expenses. Periods less than one year are
not annualized.
(b) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating expenses
would have been higher.
(c) Annualized for periods less than one year.
(d) Per share net investment income has been determined on the basis of the
weighted average number of shares outstanding during the period.
<PAGE>
<CAPTION>
RETAIL CLASS
-----------------------------------------------------
NINE MONTHS
ENDED YEAR ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
------------------------ ------------ -----------
2000 1999 1998 1997
-------------------------------------------------------------------------------------------------
Net asset value, beginning of period $10.25 $ 8.76 $ 9.86 $ 10.63
------ ------ ------ -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.62(d) 0.44 0.30(d) 0.38(d)
Net realized and unrealized gain
(loss) on investments 3.94 1.86 (1.40) (0.03)
------ ------ ------ -------
Total from investment operations 4.56 2.30 (1.10) 0.35
------ ------ ------ -------
LESS DISTRIBUTIONS--
Dividends from net investment
income (0.45) (0.42) 0.00 (0.45)
Distributions from net realized
capital gains (0.47) (0.39) 0.00 (0.67)
------ ------ ------ -------
Total distributions (0.92) (0.81) 0.00 (1.12)
------ ------ ------ -------
Net asset value, end of period $13.89 $10.25 $ 8.76 $ 9.86
====== ====== ====== =======
Total return (%)(a) 46.2 27.6 (11.2) 3.3
Net assets, end of period (000) $ 879 $ 138 $ 73 $ 20
Ratios to average net assets:
Net expenses (%)(b)(c) 1.25 1.25 1.25 1.25
Gross expenses (%)(c) 7.55 20.19 24.69 214.91
Net investment income (loss) (%)(c) 4.49 4.88 3.88 3.58
Portfolio turnover rate (%) 183 165 93 134
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 117
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
1. Loomis Sayles Funds is comprised of predominantly 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 registered with the
Securities and Exchange commission under the Investment Company Act of 1940, as
amended (the "1940 Act") and organized as a Massachusetts business trust on
February 20, 1991. 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>
Fixed Income Funds Equity Funds
------------------ ------------
<S> <C>
Loomis Sayles Bond Fund Loomis Sayles Aggressive Growth Fund
Loomis Sayles Global Bond Fund Loomis Sayles Core Value Fund
Loomis Sayles High Yield Fund Loomis Sayles Emerging Markets Fund
Loomis Sayles Intermediate Maturity Bond Fund Loomis Sayles Global Technology Fund
Loomis Sayles Investment Grade Bond Fund Loomis Sayles Growth Fund
Loomis Sayles Managed Bond Fund Loomis Sayles International Equity Fund
Loomis Sayles Municipal Bond Fund Loomis Sayles Mid-Cap Value Fund
Loomis Sayles Short-Term Bond Fund Loomis Sayles Research Fund
Loomis Sayles U.S. Government Securities Fund Loomis Sayles Small Cap Growth Fund
Loomis Sayles Small Cap Value Fund
Loomis Sayles Worldwide Fund
</TABLE>
The financial statements of the Loomis Sayles Managed Bond Fund are presented
separately.
The Loomis Sayles Emerging Markets, Global Technology, and Research Funds
commenced operations on November 9, 1999, January 31, 2000, and July 31, 2000,
respectively.
The Equity Funds offer Institutional and Retail Class shares (Aggressive Growth,
Growth, International Equity, Small Cap Growth, and Small Cap Value Funds also
offer an Admin Class). Each class has equal pro rata interest in the assets of
the relevant fund and general voting privileges. Institutional, Retail and Admin
Classes differ with respect to distribution and certain other class-specific
expenses and expense reductions.
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America 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 summarizes the significant accounting policies of the Equity Funds:
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
A. SECURITY VALUATION -- Equity securities for which quotations are readily
available are valued at their last sale price on the exchange or markets where
primarily traded or, if there is no reported sale during the day, at the closing
bid price. Long-term debt securities for which quotations are readily available
are valued by a pricing service, approved by the Board of Trustees, which
generally uses the most recent bid prices in the principal market in which such
securities are normally traded. Short-term securities with a remaining maturity
of 60 days or less are valued at amortized cost, which approximates market
value. Other securities for which quotations are not readily available
(including restricted securities, if any) are valued primarily using dealer
supplied quotations or at their fair values as determined in good faith under
the general supervision of the Board of Trustees.
B. REPURCHASE AGREEMENTS -- The Funds may 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 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 102% of the repurchase price. These
securities are marked-to-market daily. Loomis Sayles is responsible for
determining that the value of the collateral is at all times at least equal to
102% of 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 into insolvency proceedings, realization of the collateral
by the Funds may be delayed or limited.
C. FOREIGN CURRENCY TRANSLATION AND FOREIGN INVESTMENTS -- The books and records
of each of the Funds (including those Funds that invest in foreign investments)
are maintained in U.S. dollars. The value of investments, 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 each day. Purchases and sales of investments, income and expenses are
translated at prevailing exchange rates 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 investments held. All such fluctuations are included with net realized
and unrealized gain or loss on investments.
Net realized gains and losses on foreign currency transactions represent net
gains and losses from sales of foreign currencies, currency gains or losses
realized between the trade and settlement dates on securities transactions, and
the differences between the amounts of dividends, interest and foreign
withholding taxes recorded on the Funds' books and the U.S. dollar equivalent of
the amounts actually received or paid. Net unrealized foreign exchange gains or
losses arise from changes in the value of assets and liabilities other than
investments in securites at year-end resulting from changes in exchange rates.
LOOMIS SAYLES EQUITY FUNDS 119
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
Certain funds use foreign currency exchange contracts to facilitate transactions
in foreign-denominated investments. Losses may arise from changes in the value
of the foreign currency or if the counterparties do not perform under the
contracts' terms. The U.S. dollar value of foreign currency exchange contracts
is determined using contractual currency exchange rates established at the time
of each trade.
Each Fund may purchase investments of foreign issuers. Investing in securities
of foreign companies and foreign governments involves special risks and
considerations not typically associated with investing in U.S. companies and
securities of the U.S. Government. These risks include revaluation of currencies
and the risk of appropriation. Moreover, the markets for securities of many
foreign companies and foreign governments and their markets may be less liquid
and the prices of such securities may be more volatile than those of securities
of comparable U.S. companies and the U.S. Government.
D. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- Each Fund that may invest in
foreign investments may enter into forward foreign currency exchange contracts
to protect its investments against changes in future foreign exchange rates. A
forward foreign currency exchange contract is an agreement between two parties
to buy or sell currency at a set price on a future date.
The market value of the contract will fluctuate with changes in currency
exchange rates. The contract is marked-to-market daily using the forward
currency exchange rate and the change in market value is recorded as unrealized
appreciation (depreciation) on foreign currency translations in the Funds'
Statements of Assets and Liabilities. Realized gain or loss is recognized when
the contract is closed 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 and recorded
as realized gain (loss) on foreign currency transactions in the Funds'
Statements of Operations.
Risks may arise upon entering into forward foreign currency exchange contracts
from the potential inability of counterparties to meet the terms of their
contracts and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar. At September 30, 2000, there were no open forward
foreign currency exchange contracts.
E. SECURITY TRANSACTIONS, RELATED INVESTMENT INCOME AND EXPENSES -- 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. Discounts on zero coupon bonds, original issue discount
bonds, step bonds and payment in kind bonds are accreted using a method that
approximates the effective interest method. In determining net gain or loss on
securities sold, the cost of securities is determined on the identified cost
basis.
Most expenses of the Trust can be directly attributed to a particular fund.
Expenses which cannot be directly attributed to a particular fund are
apportioned among the Funds based upon their relative net assets. Investment
income, realized and unrealized
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
gains and losses, and the common expenses of a fund are allocated on a pro rata
basis to each class based on the relative net assets of each class to the total
net assets of the fund.
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 or excise tax has been
made.
At September 30, 2000, the Core Value Fund and the Global Technology Fund had
available capital loss carryforwards of $286,901 and $1,473,624, respectively,
which will expire on September 30, 2008. The capital losses are intended to be
used to offset future capital gains.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Each Fund pays its net
investment income to shareholders annually. Distributions from net realized
capital gains are declared and paid on an annual basis by all of the Funds.
Income and capital gain distributions, if any, are determined in accordance with
Federal income tax regulations which may differ from accounting principles
generally accepted in the United States of America. These differences, which may
result in reclassifications to the Funds' capital accounts to reflect income and
gains available for distribution, are primarily due to differing book and tax
treatments for litigation proceeds, foreign currency transactions,
non-deductible organization costs, deferred losses due to wash sales, excise tax
regulations and net operating losses. Some of these classifications may include
temporary book and tax basis differences that will reverse in subsequent
periods. Dividends from net investment income are determined on a class level.
Capital gains distributions are determined on a Fund level. Certain funds also
utilized earnings and profits distributed to shareholders on redemption of
shares as a part of the dividends paid deduction for income tax purposes.
H. REDEMPTION FEES-- Shares held in Emerging Markets Fund less than one year are
subject to a redemption fee equal to 2% of the amount redeemed.
I. ORGANIZATION EXPENSE-- Organization costs incurred by the Worldwide Fund are
being amortized over 60 months.
2. PURCHASES AND SALES OF INVESTMENTS -- (excluding long-term U.S. Government
securities and short-term investments) for each Fund for the period ended
September 30, 2000 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
Aggressive Growth Fund ................ $248,284,574 $127,034,893
Core Value Fund ....................... 37,944,669 64,848,576
Emerging Markets Fund ................. 7,375,918 4,580,940
Global Technology Fund ................ 35,894,950 22,457,792
Growth Fund ........................... 80,710,436 78,475,957
International Equity Fund ............. 276,410,811 271,763,569
Mid-Cap Value Fund .................... 10,287,568 10,921,058
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 121
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
Research Fund ............................. $ 4,127,892 $ 705,319
Small Cap Growth Fund ..................... 500,271,027 328,838,920
Small Cap Value Fund ...................... 337,513,272 444,444,433
Worldwide Fund ............................ 16,442,691 15,685,503
</TABLE>
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES -- For the twelve
months ended September 30, 2000, 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' general partner is indirectly owned by
Nvest, L.P., a publicly-traded limited partnership whose general partner is
indirectly owned by CDC Asset Management ("CDC AM") as of October 30, 2000. CDC
AM is part of the Caisse des Depots Consignations. Separate management
agreements for each Fund in effect during the year ended September 30, 2000
provided for fees at the following annual percentage rate of each Fund's average
daily net assets indicated below. Loomis Sayles has contractually agreed, until
February 1, 2001, to reduce its advisory fees and/or bear other expenses, to the
extent necessary to limit the total operating expenses of each Fund to the
following percentage rate of the Fund's average daily net assets:
<TABLE>
<CAPTION>
Maximum Expense Ratios
---------------------------------
Management Institutional Retail Admin
Fund Fees Class Class Class
---- --------- ------------- ------ -----
<S> <C> <C> <C> <C>
Aggressive Growth Fund ...... 0.75% 1.00% 1.25% 1.50%
Core Value Fund ............. 0.50% 0.85% 1.10% --
Emerging Markets Fund ....... 1.25% 2.25% 2.50% --
Global Technology Fund ...... 1.00% 1.50% 1.75% --
Growth Fund ................. 0.50% 0.85% 1.10% 1.35%
International Equity Fund ... 0.75% 1.00% 1.25% 1.50%
Mid-Cap Value Fund .......... 0.75% 1.00% 1.25% --
Research Fund ............... 0.75% 1.15% -- --
Small Cap Growth Fund ....... 0.75% 1.00% 1.25% 1.50%
Small Cap Value Fund ........ 0.75% 1.00% 1.25% 1.50%
Worldwide Fund .............. 0.75% 1.00% 1.25% --
</TABLE>
Retail and Admin Class shares are subject to distribution fees payable to Loomis
Sayles Distributors L.P. (the "Distributor"), a subsidiary of Loomis Sayles at
an annual rate of 0.25% of the relevant class' average net assets, pursuant to
distribution plans adopted in accordance with Rule 12b-1 under the Investment
Company Act of 1940. The Admin Class shares are subject to a shareholder service
fee payable to the Distributor at an annual rate of 0.25% of the Fund's average
net assets attributable to the Admin Class. Retail and Admin Class shares have
exclusive voting rights with respect to their distribution plans.
The Institutional Class and Retail Class of shares of the Funds may pay the
Distributor sub-transfer agent and servicing fees with respect to omnibus Fund
shareholder accounts in amounts that will not cause the Funds' respective
classes to exceed their expense
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
limitations and that do not exceed the amounts that the Funds' transfer agent
would charge if the beneficial owners of the omnibus accounts held Fund shares
directly. As of September 30, 2000, the following amounts were paid under this
arrangement:
<TABLE>
<CAPTION>
Share
Fund Class Amount
---- ------------- ----------
<S> <C> <C>
Aggressive Growth Institutional $ 56
Core Value Institutional 1,197
Small Cap Growth Institutional 3,340
Small Cap Value Institutional 23,392
</TABLE>
Effective May 8, 2000, Loomis Sayles began charging the Funds for administrative
services. As of September 30, 2000, the following amounts were incurred by the
Funds:
<TABLE>
<CAPTION>
Fund Amount
---- ----------
<S> <C>
Aggressive Growth .............................. $ 12,415
Core Value ..................................... 4,956
Emerging Markets ............................... 470
Global Technology .............................. 1,581
Growth ......................................... 5,063
International Equity ........................... 15,275
Mid-Cap Value .................................. 616
Research Fund .................................. 149
Small Cap Growth ............................... 30,348
Small Cap Value ................................ 37,637
Worldwide ...................................... 1,256
</TABLE>
A. 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, CDC Asset Management or their affiliates. Each independent
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.
B. SHAREHOLDERS -- At September 30, 2000, Loomis, Sayles & Company, L.P. Funded
Pension Plan and Trust ("Pension Plan") and the Loomis, Sayles & Company, L.P.
Employees' Profit Sharing Retirement Plan and Loomis Sayles Employees' Money
Purchase Plan ("Defined Contribution Plans") held shares of beneficial interest
in the Funds as follows:
<TABLE>
<CAPTION>
Defined
Pension Contribution
Plan Plans
------- ------------
<S> <C> <C>
Aggressive Growth Fund ................. 111,891 484,302
Core Value Fund ........................ 339,190 567,009
Emerging Markets Fund .................. 0 24,789
Global Technology Fund ................. 0 22,195
Growth Fund ............................ 259,306 1,160,651
International Equity Fund .............. 833,968 460,534
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 123
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Defined
Pension Contribution
Plan Plans
------- ------------
<S> <C> <C>
Mid-Cap Value Fund .................... 262,927 73,200
Research Fund ......................... 0 0
Small Cap Growth Fund ................. 220,567 342,154
Small Cap Value Fund .................. 321,008 554,887
Worldwide Fund ........................ 542,066 120,045
</TABLE>
4. BENEFICIAL INTEREST -- The following Funds have shareholders, each owning
beneficially or of record 10% or more of the shares outstanding of a Fund as of
September 30, 2000 and the total percentage of the shares of a Fund held by such
shareholders.
<TABLE>
<CAPTION>
10% or Greater Shareholders
# of % of
Fund Shareholders Shares Held
---- ------------ -----------
<S> <C> <C>
Emerging Markets Fund 1 40%
Research Fund 1 60%
</TABLE>
5. LINE OF CREDIT -- The Trust has entered into an agreement which enables each
Fund (except the Research Fund) to borrow under a $25 million unsecured line of
credit. Borrowings will be made solely to temporarily finance the repurchase of
capital shares. Interest is charged to each participating Fund based on its
borrowings at a rate per annum equal to the Federal Funds rate plus 0.455%. In
addition, a commitment fee of 0.08% per annum, payable at the end of each
calendar quarter, is accrued by the Trust and apportioned among the Funds based
on each Fund's average daily unused portion of the line of credit. The following
information relates to aggregate borrowings for the year ended September 30,
2000:
Maximum amount outstanding at any month end ................... $6,500,000
Average amount outstanding (total of daily outstanding principal
balances divided by number of days with debt outstanding
during the period) ......................................... $4,230,000
Average annualized interest rate .............................. 6.53%
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
6. CAPITAL SHARE TRANSACTIONS -- The tables below summarize the transactions in
Fund shares for the periods indicated:
<TABLE>
<CAPTION>
Loomis Sayles Aggressive Growth Fund
------------------------------------------------------
Year Ended Year Ended
September 30, 2000 September 30, 1999
----------------------- -----------------------
Institutional Class Shares Amount Shares Amount
------------------- --------- ------ ------ ------
<S> <C> <C> <C> <C>
Issued from the sale of shares 1,166,171 $ 47,463,571 618,252 $10,015,209
Issued in connection with the
reinvestment of distributions 29,485 838,267 6,972 75,990
Redeemed ......................... (551,296) (21,548,500) (159,705) (2,492,335)
--------- ------------ -------- -----------
Net change ....................... 644,360 $ 26,753,338 465,519 $ 7,598,864
========= ============ ======== ===========
Retail Class Shares Amount Shares Amount
------------------- --------- ------ ------ ------
Issued from the sale of shares 2,659,678 $115,539,153 54,856 $ 1,063,819
Issued in connection with the
reinvestment of distributions 3,146 89,009 292 3,175
Redeemed ......................... (380,017) (15,983,199) (4,427) (86,051)
--------- ------------ -------- -----------
Net change ....................... 2,282,807 $ 99,644,963 50,721 $ 980,943
========= ============ ======== ===========
<CAPTION>
Admin Class Shares* Amount*
------------------- --------- ------
Issued from the sale of shares 5 $ 190
Issued in connection with the
reinvestment of distributions 0 0
Redeemed 0 0
--------- ------------
Net change 5 $ 190
========= ============
</TABLE>
* FROM JULY 31, 2000 (COMMENCEMENT OF OPERATIONS).
LOOMIS SAYLES EQUITY FUNDS 125
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Loomis Sayles Core Value Fund
----------------------------------------------------------
Year Ended Year Ended
September 30, 2000 September 30, 1999
-------------------------- --------------------------
Institutional Class Shares Amount Shares Amount
------------------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares .... 550,258 $8,139,639 664,692 $11,896,666
Issued in connection with the
reinvestment of distributions .. 491,545 7,448,228 473,243 7,737,518
Redeemed .......................... (2,510,635) (36,184,566) (1,076,592) (19,066,379)
----------- ------------ ----------- ------------
Net change ........................ (1,468,832) $(20,596,699) 61,343 $567,805
========== ============ =========== ============
Retail Class Shares Amount Shares Amount
------------------- ----------- ------------ ----------- ------------
Issued from the sale of shares .... 15,686 $235,566 1,325 $24,196
Issued in connection with the
reinvestment of distributions .. 3,702 55,887 6,562 107,155
Redeemed .......................... (38,705) (588,598) (31,627) (546,028)
----------- ------------ ----------- ------------
Net change ........................ (19,317) $(297,145) (23,740) $(414,677)
========== ============ =========== ============
<CAPTION>
Loomis Sayles
Emerging Markets Fund
-------------------------
Period Ended
September 30, 2000
-------------------------
Institutional Class Shares* Amount*
------------------- ----------- ------------
<S> <C> <C>
Issued from the sale of shares .... 258,695 $3,406,250
Issued in connection with the
reinvestment of distributions .. 0 0
Redeemed .......................... (11,149) (183,893)
--------- ----------
Net change ........................ 247,546 $3,222,357
========= ==========
Retail Class Shares** Amount**
------------ --------- ----------
Issued from the sale of shares .... 1,799 $30,216
Issued in connection with the
reinvestment of distributions .. 0 0
Redeemed .......................... 0 0
--------- ----------
Net change ........................ 1,799 $30,216
========= ==========
</TABLE>
* FROM NOVEMBER 9, 1999 (COMMENCEMENT OF OPERATIONS).
** FROM MAY 9, 1999 (COMMENCEMENT OF OPERATIONS).
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Loomis Sayles
Global Technology Fund
----------------------
Period Ended
September 30, 2000
----------------------
Institutional Class Shares* Amount*
------------------- ------- -------------
<S> <C> <C>
Issued from the sale of shares ........................ 730,784 $ 9,373,436
Issued in connection with the
reinvestment of distributions ...................... 0 0
Redeemed .............................................. (126,138) (1,727,964)
------- -------------
Net change ............................................ 604,646 $ 7,645,472
======= =============
Retail Class Shares* Amount*
------------ ------- -------------
Issued from the sale of shares ........................ 766,007 $ 10,212,388
Issued in connection with the
reinvestment of distributions ...................... 0 0
Redeemed .............................................. (314,497) (4,111,027)
------- -------------
Net change ............................................ 451,510 $ 6,101,361
======= =============
</TABLE>
* FROM JANUARY 31, 2000 (COMMENCEMENT OF OPERATIONS).
<TABLE>
<CAPTION>
Loomis Sayles Growth Fund
--------------------------------------------------------
Year Ended Year Ended
September 30, 2000 September 30, 1999
-------------------------- --------------------------
Institutional Class Shares Amount Shares Amount
------------------- -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 982,589 $ 13,739,510 595,614 $ 6,698,266
Issued in connection with the
reinvestment of distributions .... 213,234 2,582,261 670,374 6,335,038
Redeemed ............................ (701,344) (9,865,685) (855,375) (10,013,356)
-------- ------------ ---------- ------------
Net change .......................... 494,479 $ 6,456,086 410,613 $ 3,019,948
======== ============ ========== ============
<CAPTION>
Retail Class Shares Amount Shares Amount
------------ -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 30,092 $ 403,759 6,413 $ 68,404
Issued in connection with the
reinvestment of distributions .... 4,783 57,295 15,812 148,319
Redeemed ............................ (24,121) (333,030) (8,103) (90,325)
-------- ------------ ---------- ------------
Net change .......................... 10,754 $ 128,024 14,122 $ 126,398
======== ============ ========== ============
<CAPTION>
Admin Class Shares* Amount*
----------- -------- ------------
<S> <C> <C>
Issued from the sale of shares ............................ 11 $ 164
Issued in connection with the
reinvestment of distributions .......................... 0 0
Redeemed .................................................. 0 0
-------- ------------
Net change ................................................ 11 $ 164
======== ============
</TABLE>
* FROM JULY 31, 2000 (COMMENCEMENT OF CLASS OPERATIONS).
LOOMIS SAYLES EQUITY FUNDS 127
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Loomis Sayles International Equity Fund
--------------------------------------------------------
Year Ended Year Ended
September 30, 2000 September 30, 1999
-------------------------- --------------------------
Institutional Class Shares Amount Shares Amount
------------------- -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 6,141,651 $ 121,233,754 1,220,250 $ 14,981,827
Issued in connection with the
reinvestment of distributions .... 293,954 4,952,186 132,207 1,574,578
Redeemed ............................ (6,000,308) (118,835,898) (1,969,173) (23,718,130)
---------- ------------- ---------- ------------
Net change .......................... 435,297 $ 7,350,042 (616,716) $ (7,161,725)
========== ============= ========== ============
<CAPTION>
Retail Class Shares Amount Shares Amount
------------ -------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 2,020,471 $ 41,452,169 24,790 $ 308,832
Issued in connection with the
reinvestment of distributions .... 3,717 62,151 303 3,596
Redeemed ............................ (1,720,414) (32,735,343) (20,105) (246,479)
---------- ------------- ---------- ------------
Net change .......................... 303,774 $ 8,778,977 4,988 $ 65,949
========== ============= ========== ============
Admin Class Shares* Amount*
----------- -------- -------------
<S> <C> <C>
Issued from the sale of shares ...... 10 $ 167
Issued in connection with the
reinvestment of distributions .... 0 0
Redeemed ............................ 0 0
---------- -------------
Net change .......................... 10 $ 167
========== =============
</TABLE>
* FROM JULY 31, 2000 (COMMENCEMENT OF OPERATIONS).
<TABLE>
<CAPTION>
Loomis Sayles Mid-Cap Value Fund
--------------------------------------------------------
Year Ended Year Ended
September 30, 2000 September 30, 1999
-------------------------- --------------------------
Institutional Class Shares Amount Shares Amount
------------------- -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 155,561 $ 1,788,815 279,307 $ 3,112,395
Issued in connection with the
reinvestment of distributions .... 17,817 200,963 11,273 118,596
Redeemed ............................ (241,063) (2,776,382) (156,082) (1,774,885)
---------- ------------- ---------- ------------
Net change .......................... (67,685) $ (786,604) 134,498 $ 1,456,106
========== ============= ========== ============
<CAPTION>
Retail Class Shares Amount Shares Amount
------------ -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 5,426 $ 61,463 42,401 $ 463,646
Issued in connection with the
reinvestment of distributions .... 668 7,516 453 4,763
Redeemed ............................ (2,787) (30,603) (33,784) (355,310)
---------- ------------- ---------- ------------
Net change .......................... 3,307 $ 38,376 9,070 $ 113,099
========== ============= ========== ============
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Loomis Sayles
Research Fund
------------------
Period Ended
September 30, 2000
------------------
Institutional Class Shares* Amount*
------------------- --------- ---------
<S> <C> <C>
Issued from the sale of shares ...... 332,974 $3,417,087
Issued in connection with the
reinvestment of distributions .... 0 0
Redeemed ............................ 0 0
--------- ----------
Net change .......................... 332,974 $3,417,087
========= ==========
</TABLE>
* FROM JULY 31, 2000 (COMMENCEMENT OF OPERATIONS).
<TABLE>
<CAPTION>
Loomis Sayles Small Cap Growth Fund
--------------------------------------------------------
Year Ended Year Ended
September 30, 2000 September 30, 1999
-------------------------- --------------------------
Institutional Class Shares Amount Shares Amount
------------------- -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 6,544,949 $ 168,973,667 4,039,306 $ 55,415,969
Issued in connection with the
reinvestment of distributions .... 0 0 0 0
Redeemed ............................ (1,674,604) (44,399,753) (941,632) (12,823,404)
---------- ------------- ---------- ------------
Net change .......................... 4,870,345 $ 124,573,914 3,097,674 $ 42,592,565
========== ============= ========== ============
<CAPTION>
Retail Class Shares Amount Shares Amount
------------ -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 2,592,120 $ 68,236,170 291,080 $ 3,589,032
Issued in connection with the
reinvestment of distributions .... 0 0 0 0
Redeemed ............................ (358,545) (9,601,016) (36,590) (455,005)
---------- ------------- ---------- ------------
Net change .......................... 2,233,575 $ 58,635,154 254,490 $ 3,134,027
========== ============= ========== ============
<CAPTION>
Admin Class Shares* Amount*
----------- -------- ------------
<S> <C> <C>
Issued from the sale of shares ...... 7 $ 174
Issued in connection with the
reinvestment of distributions .... 0 0
Redeemed ............................ 0 0
---------- -------------
Net change .......................... 7 $ 174
========== =============
</TABLE>
* FROM JULY 31, 2000 (COMMENCEMENT OF CLASS OPERATIONS).
LOOMIS SAYLES EQUITY FUNDS 129
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Loomis Sayles Small Cap Value Fund
--------------------------------------------------------
Year Ended Year Ended
September 30, 2000 September 30, 1999
-------------------------- --------------------------
Institutional Class Shares Amount Shares Amount
------------------- -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 3,190,066 $ 59,944,936 4,989,202 $ 84,737,535
Issued in connection with the
reinvestment of distributions .... 375,284 6,439,674 270,395 4,518,305
Redeemed ............................(10,440,533) (193,537,135) (6,836,078) (116,873,636)
---------- ------------- ---------- ------------
Net change .......................... (6,875,183) $(127,152,525) (1,576,481) $(27,617,796)
========== ============= ========== ============
<CAPTION>
Retail Class Shares Amount Shares Amount
------------ -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 2,528,175 $ 45,649,528 2,803,843 $ 48,225,107
Issued in connection with the
reinvestment of distributions .... 102,820 1,765,489 46,592 778,544
Redeemed ............................ (2,440,517) (44,447,741) (1,964,598) (33,831,385)
---------- ------------- ---------- ------------
Net change .......................... 190,478 $ 2,967,276 885,837 $ 15,172,266
========== ============= ========== ============
<CAPTION>
Admin Class Shares Amount Shares Amount
------------ -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 398,777 $ 7,378,041 462,206 $ 7,924,628
Issued in connection with the
reinvestment of distributions .... 3,646 62,683 1,071 17,884
Redeemed ............................ (124,340) (2,321,148) (248,524) (4,284,027)
---------- ------------- ---------- ------------
Net change .......................... 278,083 $ 5,119,576 214,753 $ 3,658,485
========== ============= ========== ============
<CAPTION>
Loomis Sayles Worldwide Fund
--------------------------------------------------------
Year Ended Year Ended
September 30, 2000 September 30, 1999
-------------------------- --------------------------
Institutional Class Shares Amount Shares Amount
------------------- -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 74,658 $ 1,047,957 21,333 $ 207,430
Issued in connection with the
reinvestment of distributions .... 48,902 580,451 51,481 461,788
Redeemed ............................ (30,118) (413,407) (24,798) (246,534)
---------- ------------- ---------- ------------
Net change .......................... 93,442 $ 1,215,001 48,016 $ 422,684
========== ============= ========== ============
<CAPTION>
Retail Class Shares Amount Shares Amount
------------ -------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Issued from the sale of shares ...... 56,422 $ 799,135 6,580 $ 63,000
Issued in connection with the
reinvestment of distributions .... 989 11,700 549 4,916
Redeemed ............................ (7,661) (105,323) (1,936) (18,780)
---------- ------------- ---------- ------------
Net change .......................... 49,750 $ 705,512 5,193 $ 49,136
========== ============= ========== ============
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
7. SUBSEQUENT EVENTS -- On August 7, 2000, the Board of Trustees approved the
closing of the Retail Class of the Loomis Sayles Core Value and Worldwide Funds.
It is expected that on or about December 18, 2000, the then outstanding Retail
Class shares will be automatically converted into the Institutional Class shares
having the same aggregate net asset value as the shares converted.
On October 18, 2000, the Board of Trustees approved the termination of the
Loomis Sayles Mid-Cap Value Fund. It is expected that the Fund will terminate
operations on or about December 18, 2000.
On October 30, 2000, CDC Asset Management (CDC AM) acquired Loomis Sayles'
parent company, Nvest Companies, L.P. and its subsidiaries. CDC AM is part of
the Caisse des Depots Consignations ("CDC"). CDC was created by the Federal
Government and currently is supervised by the French Parliament.
LOOMIS SAYLES EQUITY FUNDS 131
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
2000 U.S. TAX AND DISTRIBUTION INFORMATION TO SHAREHOLDERS (UNAUDITED)
FOREIGN TAX CREDITS -- The International Equity Fund has made an election under
Internal Revenue Code Section 853 to pass through foreign taxes paid by the Fund
to its shareholders. For the year ended September 30, 2000, the total amount of
foreign taxes that will be passed through to shareholders and the foreign source
income for information reporting purposes will be $127,561 (all of which
represents taxes withheld) and $776,668, respectively.
CAPITAL GAINS DISTRIBUTIONS -- Pursuant to Internal Revenue Section 852(b), the
following Funds paid distributions, which have been designated as capital gains
distributions for the fiscal year ended September 30, 2000:
<TABLE>
<CAPTION>
Amount
------
<S> <C>
Aggressive Growth Fund ........................................ $ 61,718
Core Value Fund ............................................... 5,786,886
Growth Fund ................................................... 5,683,373
International Equity Fund ..................................... 5,400,284
Mid-Cap Value Fund ............................................ 61,094
Small Cap Value Fund .......................................... 3,905,981
Worldwide Fund ................................................ 97,419
</TABLE>
CORPORATE DIVIDENDS RECEIVED DEDUCTION -- For the fiscal year ended September
30, 2000, a percentage of dividends distributed by the Funds listed below
qualify for the dividends received deduction for corporate shareholders. These
percentages are as follows:
<TABLE>
<CAPTION>
Qualifying
Percentage
----------
<S> <C>
Aggressive Growth Fund ........................................ 7.31%
Core Value Fund ............................................... 100.00%
Growth Fund ................................................... 2.33%
Mid-Cap Value Fund ............................................ 53.54%
Research Fund ................................................. 17.53%
Small Cap Value Fund .......................................... 20.60%
Worldwide Fund ................................................ 0.85%
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
SHAREHOLDER MEETING RESULTS (UNAUDITED)
At a special shareholders' meeting of the Loomis Sayles Funds held on October 5,
2000 shareholders of each Fund voted for the following proposal:
To approve new investment advisory agreements between the Trust on behalf of the
Funds and Loomis Sayles & Company, L.P.
<TABLE>
<CAPTION>
VOTED VOTED ABSTAINED TOTAL
FUND NAME FOR AGAINST VOTES VOTES
------------------- ----- ------- --------- -----
<S> <C> <C> <C> <C>
Loomis Sayles Aggressive
Growth Fund ......... 1,607,579 5,389 465,017 2,077,985
Loomis Sayles Core
Value Fund .......... 1,618,875 26,851 7,223 1,652,949
Loomis Sayles Emerging
Markets Fund ........ 158,998 0 129 159,127
Loomis Sayles Global
Technology Fund ..... 724,156 1,723 1,444 727,323
Loomis Sayles
Growth Fund ......... 2,109,112 19,424 115,400 2,243,936
Loomis Sayles International
Equity Fund ......... 5,647,809 7,771 17,768 5,673,348
Loomis Sayles Mid-Cap
Value Fund .......... 394,556 212 0 394,768
Loomis Sayles
Research Fund ....... 200,461 0 0 200,461
Loomis Sayles Small Cap
Growth Fund ......... 5,723,969 4,445 545,385 6,273,799
Loomis Sayles Small Cap
Value Fund .......... 9,297,858 44,552 880,250 10,222,660
Loomis Sayles Worldwide
Fund ................ 706,810 0 637 707,447
</TABLE>
LOOMIS SAYLES EQUITY FUNDS 133
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of the Loomis Sayles Equity Funds:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of the Loomis Sayles
Equity Funds (consisting of the Loomis Sayles Aggressive Growth Fund, Core
Value Fund, Emerging Markets Fund, Global Technology Fund, Growth Fund,
International Equity Fund, Mid-Cap Value Fund, Research Fund, Small Cap
Growth Fund, Small Cap Value Fund and Worldwide Fund) (collectively, the
"Funds") at September 30, 2000, the results of each of their operations, the
changes in each of their net assets and the financial highlights for the
periods indicated therein, in conformity with accounting principles generally
accepted in the United States of America. These financial statements and
financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Funds' management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted
our audits of these financial statements in accordance with auditing
standards generally accepted in the United States of America, which require
that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at September 30, 2000 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
As described in Note 7, on October 18, 2000, the Trustees voted to liquidate the
Loomis Sayles Mid-Cap Value Fund on or about December 18, 2000.
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 15, 2000
<PAGE>
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<PAGE>
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<PAGE>
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LOOMIS SAYLES FUNDS
One Financial Center
Boston, MA 02111
Telephone: 800 633-3330
www.loomissayles.com
