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LOOMIS SAYLES FUNDS
Supplement dated July 12, 2000 to the Loomis Sayles Fixed Income Fund
Prospectus, Loomis Sayles High Yield Fund Prospectus, Loomis Sayles Managed Bond
Fund Prospectus and Statement of Additional Information, Loomis Sayles Emerging
Markets Fund Prospectus, Loomis Sayles Global Technology Fund and Loomis Sayles
Small Cap Growth Fund-Class A Shares Prospectus and Loomis Sayles Investment
Grade Bond Fund-Class J Shares Prospectus, each dated February 1, 2000, the
Loomis Sayles Equity Funds Prospectus dated February 1, 2000 as revised May 24,
2000, and the Statement of Additional Information for each Fund (except Loomis
Sayles Managed Bond Fund) dated February 1, 2000 as revised June 1, 2000.
Loomis, Sayles & Company, L.P.'s parent company, Nvest, L.P., and its
affiliated operating partnership, Nvest Companies, L.P., have entered into an
agreement for CDC Asset Management to acquire all of their outstanding
partnership units. CDC Asset Management is the investment management arm of
France's Caisse des Depots Group, which is a major diversified financial
institution. Nvest will be renamed CDC Asset Management-North America and will
continue to use the holding company structure. Nvest affiliates, including
Loomis Sayles, will retain their investment independence, brand names,
management and operating autonomy. The transaction will not affect daily
operations of the Funds or the investment management activities of Loomis
Sayles.
Consummation of the transaction with CDC is subject to a number of
contingencies, including regulatory approvals and approval of the unitholders of
Nvest, L.P. and Nvest Companies, L.P. Under the rules for mutual funds, the
transaction may result in a change of control for Loomis Sayles and, therefore,
an assignment of the Funds' investment advisory agreements with Loomis Sayles,
which generally results in the termination of these agreements. Consequently, it
is anticipated that Loomis Sayles will seek approval of new investment advisory
agreements from the Funds' Board of Trustees and shareholders prior to the
consummation of the transaction. The transaction is expected to close in the
fourth quarter of 2000.
THE FOLLOWING REPLACES THE INFORMATION IN THE PORTFOLIO MANAGERS SECTION IN
THE LOOMIS SAYLES EQUITY FUNDS PROSPECTUS FOR THE LOOMIS SAYLES CORE VALUE FUND:
LOOMIS SAYLES CORE VALUE FUND Jeffrey Wardlow, Vice President of Loomis
Sayles Funds and of Loomis Sayles, has served as portfolio manager of the Fund
since its inception in 1991. Tricia Mills and Warren Koontz, Vice Presidents of
Loomis Sayles, have served as portfolio managers of the Fund since June 2000.
