<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 SMALL CAP GROWTH FUND
LOOMIS SAYLES SMALL CAP VALUE FUND
LOOMIS SAYLES WORLDWIDE FUND
- --------------------------------------------------------------------------------
[LOGO] LOOMIS * SAYLES FUNDS
SEMI-ANNUAL REPORT
MARCH 31, 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 and Lipper Category Index 8
Fund and Manager Reviews 10
Portfolio of Investments 30
Statements of Assets and Liabilities 74
Statements of Operations 76
Statements of Changes in Net Assets 78
Financial Highlights 88
Notes to Financial Statements 106
</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 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
[PHOTO]
DANIEL J. FUSS
PRESIDENT AND
PORTFOLIO MANAGER
DEAR SHAREHOLDERS,
The last six months ended March 31, 2000 showed continued strength in the U.S.
stock market and changing conditions in the U.S. bond market. The broad bond
market finished 1999 on a disappointing note, with rising interest rates and
negative returns for most sectors. While short-term rates continued to climb
into 2000, the higher-quality, longer-term sectors rebounded somewhat during
the first three months of 2000, led in large part by a bounce-back in the U.S.
Treasury sector.
At Loomis Sayles, our domestic bond funds successfully persevered through the
challenging bond market climate of the past six months. Spreads remained wide
throughout the period, which presented us with excellent long-term buying
opportunities. Because our expertise is in researching and selecting attractive
bonds, we were very comfortable with this environment.
The worst may be over for the bond market, and we're probably already off the
bottom. But, because short-term rates may continue to rise for a while, barring
a stock market drop, the market shouldn't get away from us on the upside. It's
a good time to be gradually buying discount, reasonable credits with fairly
long maturities. It's also important to get extra value by emphasizing
non-market-related factors. We have to remain cautious with corporate bonds,
though, because it's a very competitive market. All in all, it's a
better-than-average time to be in the market, particularly if focused on long,
discount, non-U.S. Treasury securities.
In the equity arena, growth stocks across all capitalization ranges remained on
a strong upward course, led by the powerful, high-flying technology sector. A
couple of rallies among value stocks were short-lived, and the growth-stock
sector emerged as the unrivaled style leader for the period. The Loomis Sayles
growth-oriented stock funds benefited nicely from this trend and posted
attractive six-month returns. Nevertheless, we continue to believe that value
stocks remain good long-term investments, and we have been able to take
advantage of good buying opportunities within this sector.
As we look ahead, the levels of debt in the economies of the major countries
remain a valid concern. As short-term interest rates move up, this may serve as
a depressant on the financial markets and a slowing mechanism for the
economies. Nevertheless, this one factor alone doesn't seem to be enough to put
an end to the economic expansion. In fact, unless the central banks go
overboard, we believe that there really is no visible factor threatening to
clobber the economies.
There are many factors, though, that appear to be dampeners of economic growth,
particularly in North America: relatively full employment, rising short-term
interest rates and the resulting slowing of private-sector borrowing, and some
deterioration in consumer sentiment. Put together, these factors could and
should slow the level of economic expansion to something more in line with
normal growth.
<PAGE>
The magnitude of stock-market leverage also is an important and growing concern
in the U.S., Europe and Japan. The Federal Reserve Board has said it won't
raise margin requirements, but a market that trends sharply downwards could
feed on itself. Those investing in volatile instruments with borrowed money
eventually will have to face up to it, and this really could put a damper on
the stock market and the economy. Stock market valuations in the U.S., and to a
lesser degree in Europe, also remain a concern given the extraordinary returns
in the past five years. These are huge markets, and a return to more normalized
performance could be disappointing in the future. If this does occur, though, I
suspect it will be a gradual process.
Sincerely,
/s/ Daniel J. Fuss
Daniel J. Fuss
President
Loomis Sayles Funds
LOOMIS SAYLES EQUITY FUNDS 3
<PAGE>
ECONOMIC AND MARKET OVERVIEW
LOOMIS SAYLES ECONOMIC AND MARKET OVERVIEW
SEMI-ANNUAL REPORT FOR THE PERIOD ENDED MARCH 31, 2000
STOCK MARKET REVIEW
The broad-based stock market continued its amazing run during 1999, posting its
fifth-consecutive year of returns in excess of 20% (as measured by the S&P 500
Index). Much of last year's performance was concentrated in the fourth quarter,
when the S&P 500 Index was up 14.9%, primarily on strong technology sector
returns.
The upward trend continued into 2000, but volatility among the soaring
technology sector in the final few weeks of the first quarter slowed down the
market. The S&P 500 ended the first quarter with a return of 2.3% and posted a
17.6% return for the six-month period ended March 31, 2000.
Two distinguishing characteristics of the period were the continued dominance
of growth over value and the outperformance of small-cap stocks versus their
larger counterparts. After a very strong fourth quarter 1999, in which the
Russell 2000 Growth Index returned an astounding 33.4%, small-cap stocks were
up 7.1% in the first quarter of 2000. For the entire six-month period, the
Russell 2000 Growth Index was up 45.75%, outpacing the larger S&P 500 Index by
28 percentage points.
Once again, the technology and telecommunications sectors fueled the market's
drive across all capitalization ranges, and the sectors' strength was the
primary reason that growth stocks maintained "favored" status over value
stocks. Even within the value sector, technology and communications companies
were the performance leaders.
Among the more notable events of the period, the January 10, 2000 merger
announcement between America Online and Time Warner gave the markets a big
boost. In addition, the technology-heavy Nasdaq Index shattered several
records during the period. But, a downward trend emerged in the final weeks
of March, reinforcing the volatility inherent among technology stocks and
igniting a leadership battle between "old economy" and "new economy"
companies. A study by Pegasus Research published in BARRON'S stated that 51
of 207 surveyed internet firms were "likely to run out of funds soon",
including such high-profile names as music vendor CDNow and Peapod, the
online grocer which saw its value drop by 56% in one day when its CEO
suddenly resigned and investors pulled $120 million in financing.
Across the board, international stocks also enjoyed a strong fourth quarter,
which capped off a year that saw the EAFE (Europe, Australasia, Far East) Index
outperforming the S&P 500 Index for the first full year since 1994. But EAFE
retreated during the first quarter of 2000, as Japan's recovery hit a
roadblock, bringing the rest of developed Asia down with it. Performance was
stronger throughout the period among the emerging markets, particularly oil
exporting nations such as Mexico and Venezuela.
<PAGE>
BOND MARKET REVIEW
It was almost as if there were two different bond markets over the last six
months. In the fourth quarter of 1999 there was a noticeable trend of investors
willing to take on some credit risk. In the battle between rising interest
rates and strengthening credits, strengthening credits emerged the winner, and
high-yield bonds were the leading performers. Government bonds, which are only
sensitive to interest-rate movements, finished the quarter on a negative note.
The first quarter of 2000 saw a reversal of this activity. A flight to quality
emerged, as investors showed little concern for interest rate hikes alone.
Instead, they acted on the notion that for lower-rated credits, higher interest
rates would make it more costly to raise capital.
The bond market also was bolstered in the first quarter 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. At the beginning of the
quarter, the two-year Treasury yielded 6.24% and the 30-year Treasury was at
6.48%. By the end of March, the yield on the two-year Treasury was up to 6.49%,
while the yield on the 30-year Treasury had fallen to 5.84%.
For the entire six-month period, government bonds outperformed all other
fixed-income securities with a return of 2.7%, as measured by the Lehman
Brothers Government Bond Index. Mortgage-backed securities were up 1.8%,
according to the Lehman Brothers Fixed Rate Mortgage-Backed Index, and
investment-grade corporate securities, as measured by Lehman Brothers
Government/Corporate Bond Index, were up 1.5%. High-yield bonds, as measured by
the Lehman Brothers High Yield Bond Index, finished the six-month period down
0.7%.
U.S. AND GLOBAL ECONOMIC REVIEW
Continuing in its proactive battle against inflationary signs, the Federal
Reserve Board implemented three separate quarter-point interest rate increases
during the six-month period. The last increase, on March 21, 2000, came on the
heels of news that the annual growth rate in the fourth-quarter of 1999 was an
astounding 6.9%-about twice the rate that Alan Greenspan would like to see.
Inflation remained relatively dormant during the period. Labor costs have gone
up slightly, but most of this seems to be offset by increased efficiency due to
technological advances.
Clearly, the Federal Reserve's efforts have not phased the economy or investors
as much as Chairman Greenspan might like. For example, growth-oriented
companies-investor favorites for the last several years-have basically been
immune to the rate increases. When these companies have needed cash, all they
have had to do is sell more stock, and there has been no shortage of buyers. As
such, the general consensus is that the Federal Reserve will raise interest
rates several more times.
LOOMIS SAYLES EQUITY FUNDS 5
<PAGE>
ECONOMIC AND MARKET OVERVIEW (CONTINUED)
Outside the U.S., we believe economic conditions generally remain favorable
throughout Europe, although the Euro recently weakened to a record low against
the U.S. dollar. Most European countries have shown robust GDP growth. In
particular, France, which is Europe's second-largest economy, grew at an
annualized rate of 3.6% in the fourth quarter of 1999. Germany, Europe's
largest and most influential economy, showed a 3.3% annualized GDP in the
fourth quarter. The outlook for Germany remains especially positive, as the
ruling coalition has implemented encouraging budgetary and tax reforms designed
to support more of a free-market economy than a government-subsidized economy.
In Japan, GDP plunged 5.5% (annualized) in the fourth quarter, representing the
country's third-largest decline since GDP data was first collected in 1960.
This was the second decline in as many quarters. Two economic "shocks"
contributed to the fourth quarter's plunge: the completion of the government's
final fiscal stimulus package and the strong appreciation of the yen. The
outlook for Japan remains uncertain, as the government struggles to implement a
plan to put economic growth back on track.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
LOOMIS SAYLES EQUITY FUNDS 7
<PAGE>
INSTITUTIONAL CLASS
<TABLE>
<CAPTION>
TOTAL RETURN(1) VS. LIPPER CATEGORY AND LIPPER CATEGORY INDEX(2) FOR THE PERIODS ENDED MARCH 31, 2000
- -------------------------------------------------------------------------------------------------------------------
MODIFIED ACTUAL
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS INCEPTION(3) INCEPTION(4)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
LOOMIS SAYLES AGGRESSIVE GROWTH FUND 132.89 197.86 75.12 NA NA 65.80
Lipper Multi-Cap Growth Funds Average % 55.59 65.13 40.24 NA NA 34.36
Rank NA 4/372 4/257 NA NA 1/249
Percentile NA 1 2 NA NA 1
Lipper Multi-Cap Growth Funds Index % 52.20 57.39 38.51 NA NA 33.67
LOOMIS SAYLES CORE VALUE FUND 0.10 (4.73) 10.08 15.13 12.70 13.31
Lipper Multi-Cap Value Funds Average % 7.78 7.92 12.96 16.32 13.55 NA
Rank NA 424/483 227/318 132/204 68/100 NA
Percentile NA 88 72 65 68 NA
Lipper Multi-Cap Value Funds Index % 5.64 5.42 12.18 16.07 13.71 NA
LOOMIS SAYLES EMERGING MARKETS FUND NA NA NA NA 59.89 112.50
Lipper Emerging Markets Funds Average % NA NA NA NA 23.24 NA
Rank NA NA NA NA 4/195 NA
Percentile NA NA NA NA 3 NA
Lipper Emerging Markets Funds Index % NA NA NA NA 20.02 NA
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND NA NA NA NA 4.36 41.10
Lipper Science and Technology Funds
Average % NA NA NA NA (4.86) NA
Rank NA NA NA NA 5/158 NA
Percentile NA NA NA NA 4 NA
Lipper Science and Technology Funds Index % NA NA NA NA (3.04) NA
LOOMIS SAYLES GROWTH FUND 47.88 46.83 31.97 26.73 18.43 19.20
Lipper Large-Cap Growth Funds Average % 38.47 38.08 36.45 29.39 20.08 NA
Rank NA 86/436 190/273 131/185 53/73 NA
Percentile NA 20 70 71 73 NA
Lipper Large-Cap Growth Funds Index % 35.74 35.07 36.67 30.95 21.09 NA
</TABLE>
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST.
(1) TOTAL RETURN ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS
DISTRIBUTIONS. TOTAL RETURN SHOWN FOR PERIODS OF ONE YEAR OR LESS
REPRESENTS CUMULATIVE TOTAL RETURN. TOTAL RETURN FOR PERIODS GREATER THAN
ONE YEAR REPRESENTS AVERAGE ANNUAL TOTAL RETURN. TOTAL RETURN SHOWN
REFLECTS, IF ANY, THE EFFECT OF FEE WAIVERS AND/OR EXPENSE REIMBURSEMENTS.
ABSENT SUCH FEE WAIVERS AND/OR EXPENSE REIMBURSEMENTS, TOTAL RETURN WOULD
HAVE BEEN LOWER.
(2) LIPPER CATEGORY TOTAL RETURN REPRESENTS THE AVERAGE 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
TOTAL RETURN OF 30 FUNDS, OR 10 FUNDS FOR THE GLOBAL FLEXIBLE PORTFOLIO
FUNDS INDEX, IN EACH FUND'S CORRESPONDING INVESTMENT CATEGORY AS DETERMINED
BY LIPPER INC. 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.
* NOT ANNUALIZED.
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
MODIFIED ACTUAL
6 MONTHS* 1 YEAR 3 YEARS 5 YEARS INCEPTION(3) INCEPTION(4)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
LOOMIS SAYLES INTERNATIONAL EQUITY FUND 72.37 104.38 28.75 21.93 15.92 15.81
Lipper International Funds Average % 26.97 39.77 18.02 15.42 11.98 NA
Rank NA 13/643 44/423 27/254 6/58 NA
Percentile NA 3 11 11 11 NA
Lipper International Funds Index % 25.50 36.93 17.81 16.69 12.60 NA
LOOMIS SAYLES MID-CAP VALUE FUND 13.36 17.53 11.88 NA NA 11.26
Lipper Mid-Cap Value Funds Average % 16.89 21.90 14.72 NA NA 13.23
Rank NA 108/185 67/122 NA NA 58/120
Percentile NA 59 55 NA NA 49
Lipper Mid-Cap Value Funds Index % 16.07 21.35 12.71 NA NA 11.03
LOOMIS SAYLES SMALL CAP GROWTH FUND 78.61 114.34 54.76 NA NA 42.40
Lipper Small-Cap Growth Funds Average % 65.68 93.41 37.34 NA NA 29.26
Rank NA 58/253 17/155 NA NA 25/148
Percentile NA 23 11 NA NA 17
Lipper Small-Cap Growth Funds Index % 68.86 96.42 34.31 NA NA 26.27
LOOMIS SAYLES SMALL CAP VALUE FUND 14.46 23.36 11.51 17.09 16.58 16.76
Lipper Small-Cap Value Funds Average % 12.87 24.01 9.54 14.24 13.19 NA
Rank NA 134/328 64/183 26/108 4/31 NA
Percentile NA 41 35 24 13 NA
Lipper Small-Cap Value Funds Index % 7.94 17.99 8.31 12.04 12.19 NA
LOOMIS SAYLES WORLDWIDE FUND 57.68 70.09 22.98 NA 20.03 19.85
Lipper Global Flexible Portfolio Funds
Average % 16.84 22.55 14.54 NA 13.33 NA
Rank NA 4/105 8/83 NA 6/68 NA
Percentile NA 4 10 NA 9 NA
Lipper Global Flexible Portfolio Funds Index % 15.98 23.52 15.17 NA 14.18 NA
</TABLE>
(3) FOR THOSE FUNDS WITH INCEPTION DATES OTHER THAN MONTH-END, 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 FEBRUARY 1, 2000
GROWTH FUND MAY 16, 1991
INTERNATIONAL EQUITY FUND MAY 10, 1991
MID-CAP VALUE FUND DECEMBER 31, 1996
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
[PHOTO] [PHOTO]
CHRISTOPHER R. ELY PHILIP C. FINE
[PHOTO]
DAVID L. SMITH
LOOMIS SAYLES AGGRESSIVE GROWTH FUND
KEY FUND FACTS
OBJECTIVE Long-term growth of capital
STRATEGY Invests primarily in stocks with market capitalization falling within
the capitalization range of the Russell Mid-Cap Growth 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) $74.1 MM
- --------------------------------------------------------------------------------
PERFORMANCE
For the six-month period ended March 31, 2000, the Institutional and Retail
classes of the Aggressive Growth Fund returned 132.89% and 132.47%,
respectively, compared to the 68.93% return for the Fund's benchmark, the
Russell Mid-Cap Growth Index. The average multi-cap growth fund, as measured by
Lipper Inc., posted a total return of 55.59% for the same period.
PORTFOLIO REVIEW
After 1999 ended on a very strong note for small- and mid-cap growth stocks, we
expected the market to consolidate during the first quarter of 2000,
particularly because short-term interest rates were rising significantly,
equity prices were surging and valuations were high. Nevertheless, these stocks
continued advancing well into the quarter, before retreating somewhat toward
the end of the period.
The Fund remained strongly weighted in the technology sector during the six
months, with emphasis on electronics, telecommunications and software.
Individual stock selection within these areas drove the Fund's strong six-month
return, but many technology stocks fell from their highs during the last few
weeks of March. Healthcare stocks also were significantly represented in the
Fund. The biotechnology area of healthcare was particularly strong during the
first several weeks of 2000, before plunging on valuation concerns. We also
continued to take advantage of a busy IPO (initial public offering) market, as
many exciting companies went public with mid-cap stocks. Furthermore, the
financial services sector started showing signs of life during the first
quarter of 2000, so we started adding to the Fund's exposure. This sector
previously had been one of the smallest and weakest components of the portfolio.
PORTFOLIO POSITIONING
We view the current correction as an opportunity to upgrade the portfolio into
certain stocks that were too expensive to purchase before. It is important to
remember that we believe that economic growth remains strong, and fundamental
performance for many small- and mid-cap companies is expected to remain solid
in the months ahead. We also plan to continue to participate in the IPO market
as long as we can identify solid fundamental opportunities in the mid-cap
universe.
/s/ Christopher R. Ely /s/ Philip C. Fine /s/ David L. Smith
Christopher R. Ely Phillip C. Fine David L. Smith
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS (%)-PERIODS ENDED MARCH 31, 2000
- -------------------------------------------------------------------------------------------------------------
Since
6 Months* 1 Year 3 Years Inception(a)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES AGGRESSIVE GROWTH FUND (INSTITUTIONAL) 132.89 197.86 75.12 65.80
LOOMIS SAYLES AGGRESSIVE GROWTH FUND (RETAIL) 132.47 196.94 74.62 65.36
Lipper Multi-Cap Growth Funds Index(b) 52.20 57.39 38.51 33.67
Russell Mid Cap Growth Index(c) 68.93 77.20 40.05 34.92
</TABLE>
[CHART]
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-DECEMBER 31, 1996 TO MARCH 31, 2000
- --------------------------------------------------------------------------------------
Loomis Sayles Lipper Multi-Cap
Aggressive Growth Growth Funds Russell Mid-Cap
Fund(d) Index Growth Index
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
12/31/96 $10,000 $10,000 $10,000
1/31/97 $10,620 $10,480 $10,443
2/28/97 $10,290 $10,191 $10,213
3/31/97 $9,630 $9,665 $9,635
4/30/97 $9,740 $9,971 $9,872
5/31/97 $10,620 $10,817 $10,756
6/30/97 $10,720 $11,223 $11,054
7/31/97 $11,810 $12,257 $12,112
8/31/97 $11,540 $11,921 $11,994
9/30/97 $12,570 $12,675 $12,601
10/31/97 $12,290 $12,115 $11,970
11/30/97 $11,910 $12,191 $12,096
12/31/97 $12,265 $12,295 $12,254
1/31/98 $11,625 $12,349 $12,033
2/28/98 $12,553 $13,376 $13,165
3/31/98 $12,980 $14,029 $13,717
4/30/98 $13,322 $14,191 $13,903
5/31/98 $12,724 $13,652 $13,331
6/30/98 $13,375 $14,354 $13,708
7/31/98 $12,692 $14,004 $13,121
8/31/98 $10,119 $11,412 $10,617
9/30/98 $11,219 $12,234 $11,420
10/31/98 $11,977 $12,922 $12,261
11/30/98 $12,073 $13,821 $13,088
12/31/98 $13,680 $15,344 $14,443
1/31/99 $13,813 $16,287 $14,876
2/28/99 $13,537 $15,438 $14,149
3/31/99 $17,363 $16,317 $14,937
4/30/99 $18,248 $16,713 $15,617
5/31/99 $18,923 $16,391 $15,416
6/30/99 $21,400 $17,537 $16,493
7/31/99 $21,234 $17,142 $15,968
8/31/99 $22,473 $16,970 $15,802
9/30/99 $22,207 $16,873 $15,667
10/31/99 $27,803 $18,062 $16,879
11/30/99 $32,629 $19,510 $18,626
12/31/99 $40,738 $22,456 $21,851
1/31/00 $41,880 $22,229 $21,847
2/29/00 $56,943 $25,782 $26,440
3/31/00 $51,718 $25,681 $26,467
</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. 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 NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN FEE WAIVERS AND
REIMBURSEMENTS, AND THAT, WITHOUT SUCH WAIVERS, PERFORMANCE, AND THEREFORE
RANKINGS, WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL AND RETAIL CLASS OF SHARES IS DECEMBER
31, 1996.
(b) DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS BEEN 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.
(c) THE RUSSELL MID-CAP GROWTH INDEX IS AN UNMANAGED INDEX WHICH MEASURES THE
PERFORMANCE OF THOSE RUSSELL MID-CAP COMPANIES WITH LOWER PRICE-TO-BOOK
RATIOS AND LOWER FORECASTED GROWTH VALUES. THE STOCKS ARE ALSO MEMBERS OF
THE RUSSELL 1000 VALUE INDEX. THE INDEX RETURNS HAVE NOT BEEN LOWERED FOR
ONGOING MANAGEMENT AND OPERATING EXPENSES APPLICABLE TO MUTUAL FUND
INVESTMENTS.
(d) CUMULATIVE PERFORMANCE IS SHOWN FOR THE INSTITUTIONAL CLASS OF SHARES.
PERFORMANCE OF THE RETAIL CLASSES OF SHARES WOULD, DUE TO THE HIGHER FEES
PAID BY THE RETAIL CLASSES OF SHARES, BE LOWER.
* NOT ANNUALIZED.
LOOMIS SAYLES EQUITY FUNDS 11
<PAGE>
FUND AND MANAGER REVIEW
[PHOTO] [PHOTO]
JAMES L. CARROLL ISAAC H. GREEN
[PHOTO]
JEFFREY W. WARDLOW
LOOMIS SAYLES CORE VALUE FUND
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: 0.82%, Retail: 1.10%
TOTAL NET ASSETS (ALL CLASSES) $50.6 MM
- --------------------------------------------------------------------------------
PERFORMANCE
For the six-month period ended March 31, 2000, the Institutional and Retail
classes of the Core Value Fund returned 0.10% and -0.01%, respectively,
compared to the 17.51% 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 7.78% for the same period.
PORTFOLIO REVIEW
Conditions remained unfavorable for value stocks throughout the six-month
period, as the market continued an overwhelming preference for growth stocks.
After a dismal fourth quarter 1999, in which the Fund's return was hindered by
certain poorly-performing defense, energy, consumer cyclical and old-line
technology stocks, we made strides to increase portfolio exposure to specific
technology sectors and improve the earnings momentum of the portfolio.
As such, we added stocks representing good "relative value" that is, they offer
price/earnings ratios that on an absolute basis may appear higher than usual,
but relative to their above-average future earnings are attractive. Technology
stocks recently offering good relative value include semiconductor companies,
software manufacturers and computer makers, all of which have been represented
in the Fund.
The healthcare sector offered good performance throughout the period, while
energy was mixed. Declining oil prices in the fourth quarter contributed to
poor stock performance, but as oil prices reversed course in the first quarter
of 2000, energy stocks rebounded and the group finished as one of the Fund's
top-performing sectors.
PORTFOLIO POSITIONING
We continue to believe that a value-oriented strategy makes sense over the long
term, and we continue to find many attractive stocks and sectors in the value
arena. At the same time, we are making strides to adapt to the market's new
landscape. We believe that the definition of "value" is changing as investors
adjust to today's dynamic market and its emphasis on "new economy" stocks.
/s/ James L. Carroll /s/ Isaac H. Green /s/ Jeffrey W. Wardlow
James L. Carroll Isaac H. Green Jeffrey W. Wardlow
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS (%)-PERIODS ENDED MARCH 31, 2000
- ----------------------------------------------------------------------------------------------------------------
Since
6 Months* 1 Year 3 Years 5 Years(a) Inception(a)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LOOMIS SAYLES CORE VALUE FUND (INSTITUTIONAL) 0.10 (4.73) 10.08 15.13 13.31
LOOMIS SAYLES CORE VALUE FUND (RETAIL) (0.01) (4.97) 9.77 14.92 13.19
Lipper Multi-Cap Value Funds Index(b) 5.64 5.42 12.18 16.07 13.71
S&P 500 Index(c) 17.51 17.94 27.40 26.76 19.14
</TABLE>
[CHART]
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-MAY 31, 1991 TO MARCH 31, 2000
- -------------------------------------------------------------------------
Lipper
Loomis Sayles Multi-Cap Value
Core Value Fund(d) Funds Index S&P 500 Index
- -------------------------------------------------------------------------
<S> <C> <C> <C>
5/31/91 $10,000 $10,000 $10,000
6/30/91 $9,431 $9,576 $9,542
7/31/91 $9,744 $9,955 $9,987
8/31/91 $9,961 $10,161 $10,223
9/30/91 $9,716 $10,110 $10,052
10/31/91 $9,754 $10,281 $10,167
11/30/91 $9,116 $9,664 $9,777
12/31/91 $10,157 $10,790 $10,895
1/31/92 $10,485 $10,812 $10,692
2/29/92 $10,706 $11,030 $10,830
3/31/92 $10,456 $10,827 $10,620
4/30/92 $10,697 $10,983 $10,932
5/31/92 $10,716 $11,104 $10,985
6/30/92 $10,485 $10,961 $10,822
7/31/92 $10,909 $11,294 $11,264
8/31/92 $10,591 $11,095 $11,033
9/30/92 $10,668 $11,271 $11,163
10/31/92 $10,764 $11,323 $11,208
11/30/92 $11,361 $11,761 $11,583
12/31/92 $11,589 $12,005 $11,725
1/31/93 $11,850 $12,213 $11,823
2/28/93 $11,961 $12,278 $11,984
3/31/93 $12,182 $12,646 $12,237
4/30/93 $11,860 $12,404 $11,941
5/31/93 $12,121 $12,695 $12,261
6/30/93 $12,111 $12,782 $12,297
7/31/93 $12,021 $12,866 $12,247
8/31/93 $12,503 $13,377 $12,712
9/30/93 $12,433 $13,368 $12,614
10/31/93 $12,704 $13,569 $12,875
11/30/93 $12,523 $13,324 $12,753
12/31/93 $12,965 $13,654 $12,907
1/31/94 $13,464 $14,096 $13,346
2/28/94 $13,329 $13,627 $12,983
3/31/94 $12,779 $13,277 $12,417
4/30/94 $13,038 $13,455 $12,577
5/31/94 $13,183 $13,607 $12,783
6/30/94 $12,779 $13,359 $12,470
7/31/94 $13,225 $13,719 $12,879
8/31/94 $13,806 $14,251 $13,407
9/30/94 $13,329 $13,939 $13,079
10/31/94 $13,308 $14,082 $13,373
11/30/94 $12,685 $13,543 $12,886
12/31/94 $12,851 $13,669 $13,077
1/31/95 $13,123 $13,880 $13,416
2/28/95 $13,642 $14,438 $13,939
3/31/95 $14,213 $14,767 $14,351
4/30/95 $14,746 $15,143 $14,773
5/31/95 $15,378 $15,698 $15,364
6/30/95 $15,487 $15,987 $15,720
7/31/95 $16,086 $16,574 $16,242
8/31/95 $16,173 $16,751 $16,283
9/30/95 $16,685 $17,216 $16,970
10/31/95 $16,271 $16,910 $16,909
11/30/95 $17,011 $17,629 $17,651
12/31/95 $17,378 $17,907 $17,991
1/31/96 $17,891 $18,457 $18,603
2/29/96 $18,046 $16,729 $18,776
3/31/96 $18,237 $18,946 $18,957
4/30/96 $18,237 $19,239 $19,236
5/31/96 $18,583 $19,553 $19,733
6/30/96 $18,619 $19,420 $19,808
7/31/96 $17,939 $18,632 $18,933
8/31/96 $18,368 $19,206 $19,332
9/30/96 $19,283 $19,992 $20,421
10/31/96 $19,810 $20,383 $20,983
11/30/96 $21,192 $21,729 $22,569
12/31/96 $21,056 $21,666 $22,122
1/31/97 $22,163 $22,474 $23,504
2/28/97 $22,311 $22,745 $23,688
3/31/97 $21,555 $22,032 $22,715
4/30/97 $22,311 $22,640 $24,071
5/31/97 $23,661 $24,071 $25,537
6/30/97 $24,822 $24,999 $26,683
7/31/97 $26,989 $26,837 $28,804
8/31/97 $26,136 $26,242 $27,190
9/30/97 $27,470 $27,497 $26,679
10/31/97 $26,452 $26,350 $27,721
11/30/97 $27,236 $26,911 $29,005
12/31/97 $27,236 $27,497 $29,533
1/31/98 $27,268 $27,433 $29,829
2/28/98 $29,073 $29,321 $31,981
3/31/98 $29,952 $30,639 $33,619
4/30/98 $30,199 $30,812 $33,957
5/31/98 $29,674 $30,128 $33,373
6/30/98 $29,628 $30,096 $34,729
7/31/98 $28,301 $28,932 $34,359
8/31/98 $24,322 $24,505 $29,399
9/30/98 $25,988 $25,520 $31,274
10/31/98 $28,194 $27,621 $33,618
11/30/98 $29,165 $28,813 $35,870
12/31/98 $30,074 $29,291 $37,934
1/31/99 $30,004 $29,394 $39,521
2/28/99 $29,119 $26,710 $36,292
3/31/99 $30,178 $29,503 $39,826
4/30/99 $32,348 $32,126 $41,367
5/31/99 $32,157 $31,959 $40,390
6/30/99 $32,973 $32,966 $42,636
7/31/99 $31,758 $31,866 $41,300
8/31/99 $30,421 $30,768 $41,096
9/30/99 $28,719 $29,441 $39,969
10/31/99 $29,796 $30,352 $42,499
11/30/99 $29,609 $30,339 $43,372
12/31/99 $29,674 $31,030 $45,917
1/31/00 $28,395 $29,692 $43,609
2/29/00 $26,113 $26,129 $42,784
3/31/00 $28,749 $31,103 $46,968
</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 NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN FEE WAIVERS AND
REIMBURSEMENTS, AND THAT, WITHOUT SUCH WAIVERS, PERFORMANCE, AND THEREFORE
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. 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 LEVELS OF MANAGEMENT AND 12b-1 FEES PAYABLE BY THE
RESPECTIVE CLASS OF SHARES.
(b) DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS BEEN 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.
(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.
(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.
* NOT ANNUALIZED.
LOOMIS SAYLES EQUITY FUNDS 13
<PAGE>
FUND AND MANAGER REVIEW
[PHOTO] [PHOTO]
ESWAR MENON JOHN TRIBOLET
[PHOTO]
ALEXANDER MUROMCEW
LOOMIS SAYLES EMERGING MARKETS FUND
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
EXPENSE RATIO Institutional: 2.25%
TOTAL NET ASSETS 4.5 MM
- --------------------------------------------------------------------------------
PERFORMANCE
For the period from the Fund's inception on November 9, 1999, through March 31,
2000, the Institutional class of the Emerging Markets Fund returned 112.50%,
compared to the 14.89% return for the Morgan Stanley Capital International
Emerging Markets Free (MSCI EMF) Index. The average emerging markets fund, as
measured by Lipper Inc., posted a total return of 23.24% for the same period.
PORTFOLIO REVIEW
After finishing 1999 on a strong note, emerging markets continued to show solid
performance in the first quarter of 2000. In particular, the oil-producing
countries, such as Mexico and Venezuela, showed strong returns due to rising
oil prices. Also, Brazil benefited from continued economic strength.
The Loomis Sayles Emerging Markets Fund performed well during the period,
outperforming the MSCI-EMF Index as well as the Lipper Emerging Markets Fund
Average. This outperformance was due to strong stock selection in Mexico,
Brazil, Russia and Tawain, and to an overweighting relative to the Index in
Israel and Hong Kong. The Fund also benefited from having little exposure to
many of the Asian countries that saw declines during the period.
PORTFOLIO POSITIONING
We structure the Fund's portfolio using a fundamental bottom-up approach, and
we expect to remain fully invested at all times. Of course, portfolio strategy
and investments will change as fundamentals in the individual companies change.
As of March 31, 2000, the largest country weightings in the portfolio were U.S.
at 13%, Israel at 12% and India at 11%, reflecting where we believe some of the
best opportunities exist.
/s/ Eswar Menon /s/ John Tribolet /s/ Alexander Muromcew
Eswar Menon John Tribolet Alexander Muromcew
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS (%)-PERIODS ENDED MARCH 31, 2000
- ------------------------------------------------------------------------
Since
Inception(a)
- ------------------------------------------------------------------------
<S> <C>
LOOMIS SAYLES EMERGING MARKETS FUND (INSTITUTIONAL) 112.50
Lipper Emerging Markets Funds Index(b) 20.02
Morgan Stanley Capital International EMF Index(c) 14.89
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-NOVEMBER 30, 1999 TO MARCH 31, 2000
- ---------------------------------------------------------------------------------------------
Morgan Stanley
Loomis Sayles Lipper Emerging Capital International
Emerging Market Fund Markets Funds Index EMF Index
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
11/30/99 $10,000 $10,000 $10,000
12/31/99 $12,935 $11,757 $11,259
1/31/00 $12,310 $11,621 $11,304
2/29/00 $15,478 $11,966 $11,450
3/31/00 $15,989 $12,002 $11,489
</TABLE>
The Fund's strong performance was attributable to unusually favorable
conditions that are not likely to be sustainable, including stong sector
weightings in business services 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. 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 NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN FEE WAIVERS AND
REIMBURSEMENTS, AND THAT, WITHOUT SUCH WAIVERS, PERFORMANCE, AND THEREFORE
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.
(b) 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.
(c) THE MORGAN STANLEY CAPITAL INTERNATIONAL EMF INDEX IS AN UNMANAGED REGIONAL
INDEX COMPRISING OF 25 EMERGING MARKET COUNTRIES.
LOOMIS SAYLES EQUITY FUNDS 15
<PAGE>
FUND AND MANAGER REVIEW
[PHOTO] [PHOTO] [PHOTO]
CHRISTOPHER R. ELY PHILIP C. FINE DAVID L. SMITH
[PHOTO] [PHOTO] [PHOTO]
ESWAR MENON JOHN TRIBOLET ALEXANDER MUROMCEW
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND
KEY FUND FACTS
OBJECTIVE Long-term capital growth
STRATEGY Invests in stocks of technology companies located in United States or
abroad
FUND INCEPTION DATE 2/1/00
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 2/1/00, Retail: 2/1/00
EXPENSE RATIO Institutional: 1.50%, Retail: 1.75%
TOTAL NET ASSETS (ALL CLASSES) $15.2 MM
- --------------------------------------------------------------------------------
PERFORMANCE
From the Fund's inception on February 1, 2000, through March 31, 2000, the
Institutional and Retail classes of the Global Technology Fund returned 41.10%
and 40.10%, respectively, compared to the 6.81% return for the Morgan Stanley
Capital International World Index and the 5.82% return for the Morgan Stanley
Capital International World Information Technology Index. The average science
and technology fund, as measured by Lipper Inc., posted a total return of
- -4.86% for the same period.
PORTFOLIO REVIEW
The Fund's strategy is to remain fully invested in a broad range of technology
companies located throughout the world. The Fund has exposure to a number of
technology sectors, including electronics, software, telecommunications and the
Internet.
The first quarter of 2000 proved to be an exceptional period for technology
stocks, despite the correction that emerged during March. A broad range of
technology stocks from all over the world contributed to the Fund's first two
months of performance.
PORTFOLIO POSITIONING
Since inception we have allocated the Fund's cash flows and assets equally
between the United States and the rest of the world. We may from time to time
reallocate cash flows and/or assets depending on market outlooks and investment
opportunities. We also have used and may continue to use IPOs (initial public
offerings) as part of the Fund's strategy, according to our investment
guidelines. Given the Fund's small size, there is the potential that
participating in IPOs may have a significant impact on Fund performance; but,
as the Fund grows in size, we expect that the impact from IPOs will lessen.
/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/ John Tribolet /s/ Alexander Muromcew
Eswar Menon John Tribolet Alexander Muromcew
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS (%)-PERIOD ENDED MARCH 31, 2000
- ------------------------------------------------------------------------------------
Since
Inception(a)
- ------------------------------------------------------------------------------------
<S> <C>
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (INSTITUTIONAL) 41.10
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (RETAIL) 40.10
Lipper Science and Technology Funds Index(b) -3.04
Morgan Stanley Capital International World Index(c) 6.81
Morgan Stanley Capital International Information Technology Index(d) 5.82
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-FEBRUARY 29, 2000 TO MARCH 31, 2000
- ----------------------------------------------------------------------------------------------------------------------
Loomis Sayles Lipper Science Morgan Stanley Morgan Stanley
Global Technology & Technology Capital International Capital International World
Fund(e) Fund Index World Index Information Technology Index
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2/29/00 $10,000 $10,000 $10,000 $10,000
3/31/00 $10,436 $9,696 $10,681 $10,582
</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. 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. 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 NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN FEE WAIVERS AND
REIMBURSEMENTS, AND THAT, WITHOUT SUCH WAIVERS, PERFORMANCE, AND THEREFORE
RANKINGS, WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL AND RETAIL CLASS OF SHARES IS FEBRUARY
1, 2000. SINCE LIPPER SCIENCE & TECHNOLOGY FUNDS INDEX AND S&P 500 INDEX
PERFORMANCE DATA IS NOT AVAILABLE COINCIDENT WITH THIS DATE, COMPARATIVE
PERFORMANCE IS PRESENTED FROM FEBRUARY 29, 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.
(c) THE MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX IS AN UNMANAGED
REGIONAL INDEX COMPRISING OF 22 DEVELOPED MARKET COUNTRIES.
(d) THE MORGAN STANLEY WORLD INFORMATION TECHNOLOGY INDEX IS AN UNMANAGED
REGIONAL AND SECTORIAL INDEX COMPRISING OF 22 DEVELOPED MARKET COUNTRIES.
(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
[PHOTO] [PHOTO]
MARK B. BARIBEAU PAMELA N. CZEKANSKI
[PHOTO]
RICHARD SKAGGS
LOOMIS SAYLES GROWTH FUND
KEY FUND FACTS
OBJECTIVE Long-term growth of capital
STRATEGY Invests in companies with relatively small market capitalization, as
well as larger companies, which are selected on the basis of their growth
potential
FUND INCEPTION DATE 5/16/91
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 5/16/91, Retail: 1/2/97
EXPENSE RATIO Institutional: 0.85%, Retail: 1.10%
TOTAL NET ASSETS (ALL CLASSES) $42.8 MM
- --------------------------------------------------------------------------------
PERFORMANCE
For the six-month period ended March 31, 2000, the Institutional and Retail
classes of the Growth Fund returned 47.88% and 47.71%, respectively, compared
to the 17.51% return for the Fund's benchmark, the Standard & Poor's 500 Index.
The average large-cap growth fund, as measured by Lipper Inc., posted a total
return of 38.47% for the same period.
PORTFOLIO REVIEW
Growth stocks continued to perform well throughout the six-month period, with
the technology sector serving as the driving force. The Fund was well
positioned to take advantage of this trend.
In the fourth quarter of 1999, several factors contributed to a strong market
climate. Inflation concerns ebbed, even as the Federal Reserve Board continued
to raise rates. This, combined with the repeal of the Glass-Steagall Act,
created opportunities to add exposure to the depressed financial services
sector. Also, third-quarter earnings releases for the technology sector
debunked Y2K-related concerns. We invested in the burgeoning areas of optical
networking in the telecommunications arena, hardware and software in the data
storage industry, and enterprise software in the business-to-business
e-commerce market. These areas should benefit long-term from the global
build-out of the Internet infrastructure.
The market's strength continued into the new year, but strong volatility soon
emerged. The Federal Reserve Board continued to raise rates, and it became
apparent that the economy was not slowing down sufficiently to quash
inflationary concerns. Also, the market wrestled with an accurate assessment of
future growth opportunities for "old" and "new" economy companies.
The Fund performed strongly throughout the six-month period, significantly
outperforming its benchmark. This primarily was due to positive stock selection
across most major sectors and a modest overweight in technology. Our focus on
companies with strong revenue and earnings paid off nicely for shareholders.
PORTFOLIO POSITIONING
We believe that market volatility is likely to continue in the coming months,
as the Federal Reserve Board continues to try to slow down the economy and as
the leadership battle between old-economy and new-economy stocks continues. We
will maintain our underlying strategy of searching for attractively priced
companies that we believe have strong revenue and earnings growth potential.
/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 MARCH 31, 2000
- -------------------------------------------------------------------------------------------------------
Since
6 Months* 1 Year 3 Year 5 Years(a) Inception(a)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LOOMIS SAYLES GROWTH FUND (INSTITUTIONAL) 47.88 46.83 31.97 26.73 19.20
LOOMIS SAYLES GROWTH FUND (RETAIL) 47.71 46.51 31.61 26.52 19.09
Lipper Large-Cap Growth Funds Index(b) 35.74 35.07 36.67 30.95 21.09
S&P 500 Index(c) 17.51 17.94 27.40 26.76 19.14
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-MAY 31, 1991 TO MARCH 31, 2000
- --------------------------------------------------------------------
Lipper
Loomis Sayles Large-Cap Growth
Growth Fund(d) Funds Index S&P 500
- --------------------------------------------------------------------
<S> <C> <C> <C>
5/31/91 $10,000 $10,000 $10,000
6/30/91 $9,267 $9,455 $9,542
7/31/91 $10,141 $9,974 $9,987
8/31/91 $10,582 $10,313 $10,223
9/30/91 $10,750 $10,207 $10,052
10/31/91 $11,116 $10,369 $10,187
11/30/91 $10,422 $9,999 $9,777
12/31/91 $11,693 $11,190 $10,895
1/31/92 $11,498 $11,171 $10,692
2/29/92 $11,615 $11,242 $10,830
3/31/92 $10,767 $10,865 $10,620
4/30/92 $10,261 $10,811 $10,932
5/31/92 $10,661 $10,927 $10,985
6/30/92 $10,291 $10,608 $10,822
7/31/92 $10,690 $10,993 $11,264
8/31/92 $10,485 $10,800 $11,033
9/30/92 $10,641 $10,994 $11,163
10/31/92 $11,216 $11,216 $11,201
11/30/92 $11,819 $11,788 $11,583
12/31/92 $12,131 $11,961 $11,725
1/31/93 $12,267 $12,012 $11,823
2/28/93 $12,131 $11,795 $11,984
3/31/93 $12,452 $12,170 $12,237
4/30/93 $12,072 $11,795 $11,941
5/31/93 $12,705 $12,240 $12,261
6/30/93 $12,783 $12,338 $12,297
7/31/93 $12,773 $12,254 $12,247
8/31/93 $13,336 $12,763 $12,712
9/30/93 $13,494 $12,954 $12,614
10/31/93 $13,523 $13,102 $12,875
11/30/93 $12,978 $12,637 $12,753
12/31/93 $13,260 $13,236 $12,907
1/31/94 $13,738 $13,718 $13,346
2/28/94 $13,239 $13,496 $12,963
3/31/94 $12,740 $12,835 $12,417
4/30/94 $12,852 $12,897 $12,577
5/31/94 $12,883 $12,975 $12,783
6/30/94 $12,251 $12,491 $12,470
7/31/94 $12,669 $12,850 $12,879
8/31/94 $13,097 $13,508 $13,437
9/30/94 $12,771 $13,187 $13,079
10/31/94 $13,270 $13,524 $13,373
11/30/94 $12,659 $13,026 $12,886
12/31/94 $12,776 $13,127 $13,077
1/31/95 $12,929 $13,229 $13,416
2/28/95 $13,277 $13,685 $13,939
3/31/95 $13,634 $14,073 $14,351
4/30/95 $13,808 $14,457 $14,773
5/31/95 $14,248 $14,935 $15,364
6/30/95 $15,178 $15,698 $15,720
7/31/95 $15,893 $16,552 $16,242
8/31/95 $16,261 $16,664 $16,283
9/30/95 $16,670 $17,262 $16,970
10/31/95 $16,527 $17,164 $16,909
11/30/95 $16,905 $17,704 $17,651
12/31/95 $16,725 $17,711 $17,991
1/31/96 $16,703 $18,232 $18,603
2/29/96 $17,240 $18,642 $18,776
3/31/96 $17,261 $18,651 $18,957
4/30/96 $18,258 $19,094 $19,236
5/31/96 $18,729 $19,656 $19,733
6/30/96 $18,762 $19,481 $19,808
7/31/96 $17,064 $18,438 $18,933
8/31/96 $17,787 $18,991 $19,332
9/30/96 $19,002 $20,313 $20,421
10/31/96 $19,777 $20,566 $20,963
11/30/96 $20,608 $21,896 $22,569
12/31/96 $20,047 $21,352 $22,122
1/31/97 $21,822 $22,706 $23,504
2/28/97 $20,614 $22,380 $23,688
3/31/97 $19,391 $21,233 $22,715
4/30/97 $19,227 $22,398 $24,071
5/31/97 $21,121 $23,918 $25,537
6/30/97 $21,807 $24,920 $26,683
7/31/97 $24,015 $28,301 $28,804
8/31/97 $23,474 $25,812 $27,190
9/30/97 $25,556 $27,238 $28,679
10/31/97 $25,296 $26,292 $27,721
11/30/97 $24,524 $26,677 $29,005
12/31/97 $24,960 $27,244 $29,503
1/31/98 $23,932 $27,726 $29,829
2/28/98 $25,671 $29,843 $31,981
3/31/98 $26,561 $31,232 $33,619
4/30/98 $27,332 $31,755 $33,957
5/31/98 $26,225 $31,045 $33,373
6/30/98 $27,411 $32,822 $34,729
7/31/98 $25,928 $32,806 $34,359
8/31/98 $20,731 $27,449 $39,399
9/30/98 $23,023 $29,446 $31,274
10/31/98 $24,604 $31,345 $33,818
11/30/98 $24,762 $33,497 $35,670
12/31/98 $26,171 $37,180 $37,934
1/31/99 $29,034 $39,594 $39,521
2/28/99 $27,847 $37,968 $38,292
3/31/99 $30,357 $40,127 $39,826
4/30/99 $30,761 $40,264 $41,367
5/31/99 $29,898 $38,930 $40,390
6/30/99 $32,030 $41,636 $42,636
7/31/99 $30,626 $40,329 $41,300
8/31/99 $30,842 $40,338 $41,096
9/30/99 $30,141 $39,928 $39,969
10/31/99 $32,434 $42,990 $42,498
11/30/99 $34,679 $45,115 $43,372
12/31/99 $40,152 $50,125 $45,917
1/31/00 $38,572 $48,113 $43,609
2/29/00 $43,401 $50,644 $42,784
3/31/00 $44,571 $54,198 $46,968
</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 NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN FEE WAIVERS AND
REIMBURSEMENTS, AND THAT, WITHOUT SUCH WAIVERS, PERFORMANCE, AND THEREFORE
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 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 LEVELS OF MANAGEMENT AND 12b-1 FEES PAYABLE BY THE
RESPECTIVE CLASS OF SHARES.
(b) DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS BEEN 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.
(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.
(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.
* NOT ANNUALIZED.
LOOMIS SAYLES EQUITY FUNDS 19
<PAGE>
FUND AND MANAGER REVIEW
[PHOTO] [PHOTO]
ESWAR MENON JOHN TRIBOLET
[PHOTO]
ALEXANDER MUROMCEW
LOOMIS SAYLES INTERNATIONAL EQUITY FUND
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
EXPENSE RATIO Institutional: 1.00%, Retail: 1.25%
TOTAL NET ASSETS (ALL CLASSES) $159.0 MM
- --------------------------------------------------------------------------------
PERFORMANCE
For the six-month period ended March 31, 2000, the Institutional and Retail
classes of the International Equity Fund returned 72.37% and 72.06%,
respectively. 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 16.86% for the period. The average
international fund, as measured by Lipper Inc., posted a total return of 26.97%
for the same period.
PORTFOLIO REVIEW
After outperforming U.S. stocks during the fourth quarter of 1999,
international stocks retreated during the first three months of 2000 and
underperformed their domestic counterparts. The Fund, however, significantly
outperformed the Morgan Stanley Capital International EAFE Index during the
six-month period.
Of particular significance during the period was the strong outperformance of
small- and mid-capitalization companies throughout the world. Also, the
technology sector proved to be the best place to invest among international
markets. In particular, the semiconductor, telecommunication equipment and
wireless areas offered the strongest returns, and the Fund benefited nicely
from this trend.
The Fund also benefited from major shifts we made early in the first quarter of
2000. We reduced the Fund's overweighted positions in Japan and developed Asia
to underweightings, and we initiated an overweight in Europe, primarily in the
technology-heavy Scandinavian countries. This proved to be a beneficial
strategy, as Scandinavia was strong and Japan was down 3.2% for the quarter.
Furthermore, Japan's weakness dragged down the rest of developed Asia, and
together these markets accounted for much of the first-quarter decline in the
Morgan Stanley Capital International EAFE Index.
PORTFOLIO POSITIONING
We believe that many of today's best growth opportunities are in European
markets, and that those opportunities are available at attractive
valuations--more attractive than valuations in Asia and the United States. In
addition, the macro-economic factors in European markets appear more favorable
than in Asia. As such, we plan to position the Fund to take advantage of these
opportunities.
/s/ Eswar Menon /s/ John Tribolet /s/ Alexander Muromcew
Eswar Menon John Tribolet Alexander Muromcew
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS (%)-PERIODS ENDED MARCH 31, 2000
- -----------------------------------------------------------------------------------------------------------------------
Since
6 Months* 1 Year 3 Year 5 Year(a) Inception(a)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (INSTITUTIONAL) 72.37 104.38 28.75 21.93 15.81
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (RETAIL) 72.06 103.83 28.37 21.70 15.68
Lipper International Funds Index(b) 25.50 36.93 17.81 16.69 12.60
Morgan Stanley Capital International EAFE Index(c) 16.86 25.09 16.31 12.39 10.13
</TABLE>
CUMULATIVE PERFORMANCE-MAY 31, 1991 TO MARCH 31, 2000
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<CAPTION>
Lipper International Morgan Stanley
Loomis Sayles International Equity Funds Capital International
Equity Fund(d) Index EAFE Index
<S> <C> <C> <C> <C>
5/31/91 $10,000 $10,000 $10,000
6/30/91 $9,460 $9,479 $9,265
7/31/91 $9,960 $9,898 $9,720
8/31/91 $9,980 $9,607 $9,523
9/30/91 $10,360 $10,089 $10,060
10/31/91 $10,280 $10,130 $10,202
11/30/91 $9,960 $9,768 $9,726
12/31/91 $10,366 $10,226 $10,228
1/31/92 $10,649 $10,337 $10,010
2/29/92 $10,992 $10,353 $9,652
3/31/92 $10,831 $10,018 $9,014
4/30/92 $10,962 $10,282 $9,057
5/31/92 $11,416 $10,797 $9,663
6/30/92 $11,214 $10,469 $9,205
7/31/92 $10,966 $10,078 $8,969
8/31/92 $10,774 $10,126 $9,532
9/30/92 $10,531 $9,911 $9,344
10/31/92 $9,713 $9,617 $8,854
11/30/92 $9,713 $9,669 $8,937
12/31/92 $9,839 $9,788 $8,983
1/31/93 $10,094 $9,624 $8,982
2/28/93 $10,359 $10,045 $9,253
3/31/93 $10,768 $10,627 $10,060
4/30/93 $11,074 $11,178 $11,015
5/31/93 $11,421 $11,436 $11,247
6/30/93 $10,992 $11,211 $11,072
7/31/93 $11,176 $11,566 $11,459
8/31/93 $12,237 $12,332 $12,078
9/30/93 $12,135 $12,286 $11,806
10/31/93 $12,931 $12,893 $12,170
11/30/93 $12,676 $12,362 $11,106
12/31/93 $13,631 $13,623 $11,908
1/31/94 $14,540 $14,472 $12,915
2/28/94 $14,170 $14,124 $12,879
3/31/94 $13,641 $13,477 $12,324
4/30/94 $13,779 $13,834 $12,847
5/31/94 $13,568 $13,813 $12,773
6/30/94 $13,420 $13,595 $12,954
7/31/94 $13,789 $14,014 $13,079
8/31/94 $13,853 $14,499 $13,388
9/30/94 $13,641 $14,125 $12,967
10/31/94 $13,684 $14,377 $13,398
11/30/94 $13,282 $13,706 $12,754
12/31/94 $13,391 $13,523 $12,834
1/31/95 $13,137 $12,852 $12,341
2/28/95 $13,506 $12,849 $12,386
3/31/95 $13,679 $13,187 $13,073
4/30/95 $14,337 $13,672 $13,565
5/31/95 $14,798 $13,806 $13,403
6/30/95 $14,764 $13,859 $13,168
7/31/95 $15,156 $14,621 $13,988
8/31/95 $14,487 $14,374 $13,454
9/30/95 $14,775 $14,614 $13,717
10/31/95 $14,475 $14,310 $13,349
11/30/95 $14,348 $14,459 $13,720
12/31/95 $14,560 $14,878 $14,273
1/31/96 $15,047 $15,230 $14,331
2/29/96 $15,197 $15,295 $14,380
3/31/96 $15,222 $15,534 $14,685
4/30/96 $15,647 $16,040 $15,112
5/31/96 $15,584 $16,022 $14,834
6/30/96 $15,722 $16,168 $14,917
7/31/96 $15,347 $15,623 $14,481
8/31/96 $15,634 $15,827 $14,513
9/30/96 $15,931 $16,181 $14,899
10/31/96 $16,193 $16,116 $14,746
11/30/96 $16,894 $16,874 $15,333
12/31/96 $17,225 $17,025 $15,136
1/31/97 $17,329 $17,047 $14,606
2/28/97 $17,212 $17,355 $14,845
3/31/97 $17,277 $17,447 $14,899
4/30/97 $17,251 $17,523 $14,978
5/31/97 $18,088 $18,511 $15,952
6/30/97 $18,874 $19,400 $16,832
7/31/97 $19,485 $20,023 $17,104
8/31/97 $17,787 $18,579 $15,827
9/30/97 $18,961 $19,771 $16,714
10/31/97 $17,349 $18,270 $15,429
11/30/97 $16,978 $18,117 $15,272
12/31/97 $17,055 $18,259 $15,405
1/31/98 $17,735 $18,701 $16,109
2/28/98 $18,851 $19,888 $17,143
3/31/98 $19,787 $20,968 $17,671
4/30/98 $19,832 $21,290 $17,811
5/31/98 $19,304 $21,333 $17,724
6/30/98 $18,565 $21,146 $17,859
7/31/98 $18,851 $21,470 $18,040
8/31/98 $16,693 $18,382 $15,805
9/30/98 $16,210 $17,810 $15,320
10/31/98 $17,297 $19,119 $16,917
11/30/98 $18,142 $20,077 $17,784
12/31/98 $18,645 $20,571 $18,485
1/31/99 $18,629 $20,696 $18,431
2/28/99 $17,761 $20,163 $17,992
3/31/99 $18,040 $20,835 $18,743
4/30/99 $18,784 $21,806 $19,502
5/31/99 $18,195 $20,995 $18,498
6/30/99 $19,157 $21,991 $19,219
7/31/99 $20,041 $22,462 $19,790
8/31/99 $20,475 $22,660 $19,862
9/30/99 $21,390 $22,732 $20,062
10/31/99 $23,081 $23,526 $20,614
11/30/99 $26,336 $25,251 $21,537
12/31/99 $35,466 $28,354 $23,470
1/31/00 $33,831 $26,694 $21,979
2/29/00 $39,891 $28,456 $22,570
3/31/00 $36,869 $28,529 $23,445
</TABLE>
The Fund's strong performance was attributable to unusually favorable conditions
that are not likely to be sustainable, including a strong weighting in the
global technology and utility sectors.
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 NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN FEE WAIVERS AND
REIMBURSEMENTS, AND THAT, WITHOUT SUCH WAIVERS, PERFORMANCE, AND THEREFORE
RANKINGS, WOULD BE LOWER.
(a) INCEPTION DATE OF THE INSTITUTIONAL CLASSES 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 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 LEVELS OF MANAGEMENT AND 12b-1
FEES PAYABLE BY THE RESPECTIVE CLASS OF SHARES.
(b) 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.
(c) 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.
(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.
* NOT ANNUALIZED.
LOOMIS SAYLES EQUITY FUNDS 21
<PAGE>
FUND AND MANAGER REVIEW
[PHOTO]
DAWN ALSTON-PAIGE
[PHOTO]
JOSEPH R. GATZ
LOOMIS SAYLES MID-CAP VALUE FUND
KEY FUND FACTS
OBJECTIVE Long-term growth of capital
STRATEGY Invests primarily in stocks with market capitalization falling within
the capitalization range of the Standard & Poor's Mid-Cap 400 Index, which are
believed to be undervalued by the market.
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 MM
- --------------------------------------------------------------------------------
PERFORMANCE
For the six-month period ended March 31, 2000, the Institutional and Retail
classes of the Mid-Cap Value Fund returned 13.36% and 13.22%, respectively,
compared to the 32.06% 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 16.89% for the same period.
PORTFOLIO REVIEW
Market conditions generally were favorable for mid-cap stocks during the
six-month period. During the fourth quarter of 1999 and the first quarter of
2000, mid-cap stocks 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.
Disappointing stock selection in the technology, utilities and consumer related
sectors contributed to the Fund's underperformance relative to the benchmark. As
such, we made several changes to the Fund in order to improve its fundamental
profile. We eliminated a number of holdings due to uncertain or deteriorating
prospects and added several reasonably priced stocks with stronger earnings
growth expectations and other positive fundamental outlooks. Most of these
additions were in the technology, healthcare and consumer discretionary sectors.
The net result for the Fund has been modestly higher expected earnings growth,
higher average return on equity, lower average debt/equity and a slightly
narrower valuation discount versus the S&P Mid-Cap 400 Index.
PORTFOLIO POSITIONING
Despite the recent market volatility and the improved performance of value
stocks, our strategy remains intact. We continue to work toward maintaining the
Fund's attractive relative valuation profile and improving its fundamental
character. As such, we look for and invest in companies with solid earnings
prospects, and we eliminate holdings with uncertain or deteriorating prospects.
In addition, we have reduced the Fund's overweightings in consumer stocks and
utilities and increased technology holdings. Nonetheless, the Fund's technology
weighting relative to the benchmark index recently declined due to the
extraordinary price appreciation of this sector during the first quarter of
2000.
/s/ Dawn Alston-Paige /s/ Joseph R. Gatz
Dawn Alston-Paige Joseph R. Gatz
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS (%)-PERIODS ENDED MARCH 31, 2000
- -----------------------------------------------------------------------------------------------------------
Since
6 Months* 1 Year 3 Year Inception(a)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES MID-CAP VALUE FUND (INSTITUTIONAL) 13.36 17.53 11.88 11.26
LOOMIS SAYLES MID-CAP VALUE FUND (RETAIL) 13.22 17.18 11.55 10.95
Lipper Mid-Cap Value Funds Index(b) 16.07 21.35 12.71 11.03
S&P Mid-Cap 400 Index(c) 32.06 38.08 27.39 24.46
</TABLE>
CUMULATIVE PERFORMANCE-DECEMBER 31, 1996 TO MARCH 31, 2000
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<CAPTION>
Loomis Sayles
Mid-Cap Value Lipper Mid-Cap S&P Mid-Cap
Fund(d) Value Funds Index 400 Index
<S> <C> <C> <C> <C>
12/31/96 $10,000 $10,000 $10,000
1/31/97 $10,370 $10,185 $10,375
2/28/97 $10,380 $10,184 $10,290
3/31/97 $10,100 $9,813 $9,851
4/30/97 $10,120 $9,948 $10,107
5/31/97 $10,950 $10,727 $10,991
6/30/97 $11,370 $11,053 $11,299
7/31/97 $12,100 $11,745 $12,418
8/31/97 $12,050 $11,824 $12,403
9/30/97 $12,710 $12,516 $13,116
10/31/97 $12,530 $12,081 $12,545
11/30/97 $12,570 $12,140 $12,731
12/31/97 $12,632 $12,266 $13,225
1/31/98 $12,402 $12,108 $12,974
2/28/98 $13,519 $12,951 $14,048
3/31/98 $14,034 $13,491 $14,682
4/30/98 $14,232 $13,647 $14,950
5/31/98 $13,530 $13,116 $14,277
6/30/98 $13,651 $13,063 $14,367
7/31/98 $12,917 $12,326 $13,810
8/31/98 $10,671 $10,263 $11,240
9/30/98 $11,054 $10,556 $12,289
10/31/98 $11,339 $11,189 $13,387
11/30/98 $12,260 $11,602 $14,055
12/31/98 $12,999 $12,055 $15,753
1/31/99 $12,647 $11,974 $15,140
2/28/99 $11,852 $11,351 $14,347
3/31/99 $12,034 $11,577 $14,748
4/30/99 $13,203 $12,470 $15,911
5/31/99 $13,441 $12,576 $15,981
6/30/99 $13,759 $13,062 $16,835
7/31/99 $13,669 $12,823 $16,478
8/31/99 $13,033 $12,387 $15,914
9/30/99 $12,477 $12,104 $15,422
10/31/99 $13,033 $12,220 $16,206
11/30/99 $13,237 $12,659 $17,059
12/31/99 $13,872 $13,494 $18,072
1/31/00 $12,915 $12,788 $17,563
2/29/00 $13,198 $13,144 $18,792
3/31/00 $14,143 $14,048 $20,365
</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 NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN FEE WAIVERS AND
REIMBURSEMENTS, AND THAT, WITHOUT SUCH WAIVERS, PERFORMANCE, AND THEREFORE
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 BEEN 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.
(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 GAVE NOT BEEN LOWERED FOR ONGOING MANAGEMENT AND
OPERATING EXPENSES APPLICABLE TO MUTUAL FUND INVESTMENTS.
(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.
* NOT ANNUALIZED.
LOOMIS SAYLES EQUITY FUNDS 23
<PAGE>
FUND AND MANAGER REVIEW
[PHOTO] [PHOTO]
CHRISTOPHER R. ELY PHILIP C. FINE
[PHOTO]
DAVID L. SMITH
LOOMIS SAYLES SMALL CAP GROWTH FUND
KEY FUND FACTS
OBJECTIVE Long-term growth capital
STRATEGY Invests in stocks of small, rapidly-growing companies, with the
potential for accelerating earnings growth and rising profit margins
FUND INCEPTION DATE 12/31/96
COMMENCEMENT OF OPERATIONS OF CLASS Institutional: 1/2/97, Retail: 1/2/97
EXPENSE RATIO Institutional: 0.89%, Retail: 1.24%
TOTAL NET ASSETS (ALL CLASSES) $223.6 MM
- --------------------------------------------------------------------------------
PERFORMANCE
For the six-month period ended March 31, 2000, the Institutional and Retail
classes of the Small Cap Growth Fund returned 78.61% and 78.26%, respectively,
compared to the 45.77% return for the Fund's benchmark, the Russell 2000 Growth
Index. The average small-cap growth fund, as measured by Lipper Inc., posted a
total return of 65.68% for the same period.
PORTFOLIO REVIEW
After a spectacular fourth quarter for small- and mid-cap growth stocks, we
expected a consolidation in the first quarter, particularly given the
significant rise in short-term interest rates, surging energy prices and high
valuations. Nonetheless, small- and mid-cap growth stocks continued their
advance well into the new year, finally retreating somewhat toward the end of
the first quarter.
The Fund remained fully invested in small-cap growth stocks throughout the
six-month period. The Fund's largest sector exposure remained in technology,
with an emphasis on electronics, telecommunications and software. This proved to
be a beneficial strategy, as technology continued to drive overall market
performance, and our specific security selections within this sector further
enhanced the Fund's return. The Fund also held a significant position in the
healthcare sector. Within that sector, biotechnology stocks enjoyed a dramatic
increase during the first two months of 2000, but then they quickly plunged
after valuation concerns intensified. The Fund still enjoyed strong performance
from several healthcare holdings during the first quarter of 2000. Financial
services had been one of the weakest and smallest sectors in the Fund throughout
1999. But, we have seen some signs of life so far in 2000, and we have started
to increase the Fund's exposure.
PORTFOLIO POSITIONING
Despite the strong volatility that emerged late in the period, we see no reason
to alter the Fund's basic strategy. Indeed, we view the current correction as an
opportunity to upgrade the portfolio, as stocks that had been too expensive drop
to more attractive levels. It is important to remember that outlook for economic
growth remains strong, which we believe should result in solid fundamental
performance for many small and mid-sized companies. We plan to continue
participating in the IPO (initial public offering) market, as long as we can
identify solid opportunities in the small cap universe. But, since the Fund's
assets exceed $200 million, we expect the impact of IPOs on the Fund's overall
performance to remain minor.
/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 MARCH 31, 2000
- -----------------------------------------------------------------------------------------------------------
Since
6 Months* 1 Year 3 Year Inception(a)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES SMALL CAP GROWTH FUND (INSTITUTIONAL) 78.61 114.34 54.76 42.40
LOOMIS SAYLES SMALL CAP GROWTH FUND (RETAIL) 78.26 113.68 54.42 42.06
Lipper Small-Cap Growth Funds Index(b) 68.86 96.42 34.31 26.27
Russell 2000 Growth Index(c) 45.77 59.04 25.94 19.58
Russell 2000 Index(c) 26.83 37.29 17.75 14.40
</TABLE>
CUMULATIVE PERFORMANCE-DECEMBER 31, 1996 TO MARCH 31, 2000
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<CAPTION>
Loomis Sayles Small Lipper Small-Cap Russell 2000 Russell 2000
Cap Growth Fund (d) Growth Funds Index Growth Index Index
<S> <C> <C> <C> <C> <C>
12/31/1996 $10,000 $10,000 $10,000 $10,000
1/31/1997 $10,260 $10,232 $10,250 $10,200
2/28/1997 $9,500 $9,493 $9,631 $9,952
3/31/1997 $8,510 $8,808 $8,951 $9,483
4/30/1997 $8,350 $8,677 $8,848 $9,509
5/31/1997 $9,710 $9,881 $10,177 $10,567
6/30/1997 $10,280 $10,409 $10,523 $11,020
7/31/1997 $11,110 $11,036 $11,062 $11,533
8/31/1997 $11,300 $11,211 $11,394 $11,797
9/30/1997 $12,550 $12,155 $12,303 $12,660
10/31/1997 $11,670 $11,533 $11,564 $12,104
11/30/1997 $11,540 $11,273 $11,288 $12,026
12/31/1997 $11,943 $11,123 $11,285 $12,236
1/31/1998 $11,552 $10,957 $11,144 $12,043
2/28/1998 $12,808 $11,843 $12,126 $12,934
3/31/1998 $13,388 $12,379 $12,636 $13,467
4/30/1998 $13,209 $12,469 $12,714 $13,541
5/31/1998 $12,101 $11,587 $11,790 $12,812
6/30/1998 $13,282 $11,926 $11,911 $12,839
7/31/1998 $11,974 $11,029 $10,916 $11,800
8/31/1998 $9,273 $8,620 $8,396 $9,508
9/30/1998 $10,371 $9,081 $9,247 $10,253
10/31/1998 $10,782 $9,439 $9,730 $10,671
11/30/1998 $12,132 $10,207 $10,485 $11,230
12/31/1998 $14,179 $11,230 $11,433 $11,925
1/31/1999 $14,591 $11,501 $11,948 $12,083
2/28/1999 $13,673 $10,395 $10,855 $11,104
3/31/1999 $14,717 $10,865 $11,241 $11,278
4/30/1999 $14,854 $11,289 $12,234 $12,288
5/31/1999 $14,580 $11,350 $12,253 $12,468
6/30/1999 $16,764 $12,413 $12,899 $13,032
7/31/1999 $16,268 $12,369 $12,500 $12,674
8/31/1999 $16,743 $12,195 $12,033 $12,205
9/30/1999 $17,661 $12,637 $12,265 $12,208
10/31/1999 $19,929 $13,374 $12,579 $12,257
11/30/1999 $22,039 $15,062 $13,909 $12,989
12/31/1999 $27,198 $18,099 $16,360 $14,459
1/31/2000 $26,702 $17,910 $16,208 $14,227
2/29/2000 $36,355 $23,158 $19,979 $16,577
3/31/2000 $31,544 $21,340 $17,879 $15,484
</TABLE>
The Fund's strong performance was attributable to unusually favorable conditions
that are not likely to be sustainable, including strong weightings in the
technology and consumer sectors, and investments in 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.
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN FEE WAIVERS AND
REIMBURSEMENTS, AND THAT, WITHOUT SUCH WAIVERS, PERFORMANCE, AND THEREFORE
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 BEEN CHANGED FROM SMALL-CAP FUNDS TO SMALL-CAP GROWTH FUNDS. THE LIPPER
SMALL-CAP GROWTH FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED INDEX OF
TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE SMALL-CAP GROWTH FUNDS
INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL
GAINS DISTRIBUTIONS AND INCOME DIVIDENDS.
(c) THE FUND CHANGED ITS BENCHMARK INDEX DURING THE PERIOD ENDED MARCH 31, 2000
FROM THE RUSSELL 2000 INDEX TO THE RUSSELL 2000 GROWTH INDEX, WHICH IS AN
UNMANAGED INDEX COMPRISING 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.
(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.
* NOT ANNUALIZED.
LOOMIS SAYLES EQUITY FUNDS 25
<PAGE>
FUND AND MANAGER REVIEW
[PHOTO]
DAWN ALSTON-PAIGE
[PHOTO]
JOSEPH R. GATZ
LOOMIS SAYLES SMALL CAP VALUE FUND
KEY FUND FACTS
OBJECTIVE Long-term growth of capital
STRATEGY Invests primarily in stocks with market capitalization falling within
the capitalization range of the Russell 2000 Index, which are considered
undervalued by the market
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: 0.94%, Retail: 1.15%, Admin: 1.45%
TOTAL NET ASSETS (ALL CLASSES) $357.0 MM
- --------------------------------------------------------------------------------
PERFORMANCE
For the six-month period ended March 31, 2000, the Institutional, Retail and
Admin classes of the Small Cap Value Fund returned 14.46%, 14.33% and 14.19%,
respectively, compared to the 26.83% 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 12.87% for the same period.
PORTFOLIO REVIEW
For most of the six-month period, 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.
Over the past six months we slightly repositioned the portfolio to give
recognition to the dynamic economic and market forces that have driven stock
results over the past several years. As such, we modestly increased the
portfolio's weighting in technology and healthcare, adding to positions in
semiconductors and electronic components, computer software and services and
communications equipment, and initiating a small commitment to biotechnology.
Holdings in these sectors and in the energy and materials and processing sectors
contributed to the Fund's positive six-month return. While the Fund lagged the
Russell 2000 for the six-month period, primarily due to underweightings in
technology and healthcare, it did outperform in the first quarter of 2000, 8.94%
(Institutional share class) versus 7.08%.
PORTFOLIO POSITIONING
While the recent improvement in value returns is encouraging, we have not
changed our overall investment strategy. By maintaining our discipline of
focusing on key value attributes and identifying the catalysts that we believe
are necessary for superior share price performance, we have been able to
participate in broader market trends that are consistent with our investment
process. Looking ahead, we believe the Fund is well structured for the market
environment expected in the months ahead.
/s/ Dawn Alston-Paige /s/ Joseph R. Gatz
Dawn Alston-Paige Joseph R. Gatz
LOOMIS SAYLES EQUITY FUNDS 27
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS (%)-PERIODS ENDED MARCH 31, 2000
- -----------------------------------------------------------------------------------------------------------------------
Since
6 Months* 1 Year 3 Years 5 Years(a) Inception(a)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LOOMIS SAYLES SMALL CAP VALUE FUND (INSTITUTIONAL) 14.46 23.36 11.51 17.09 16.76
LOOMIS SAYLES SMALL CAP VALUE FUND (RETAIL) 14.33 23.02 11.16 16.86 16.64
LOOMIS SAYLES SMALL CAP VALUE FUND (ADMIN) 14.19 22.74 10.96 16.69 16.48
Lipper Small-Cap Value Funds Index(b) 7.94 17.99 8.31 12.04 12.19
Russell 2000 Index(c) 26.83 37.29 17.75 17.24 15.05
</TABLE>
CUMULATIVE PERFORMANCE-MAY 31, 1991 TO MARCH 31, 2000
- --------------------------------------------------------------------------------
[CHART]
<TABLE>
<CAPTION>
Loomis Sayles Small Lipper Small-Cap
Cap Value Fund(d) Value Funds Index Russell 2000 Index
<S> <C> <C> <C>
5/31/91 $10,000 $10,000 $10,000
6/30/91 $9,646 $9,651 $9,417
7/31/91 $10,411 $9,697 $9,748
8/31/91 $11,204 $10,133 $10,109
9/30/91 $11,213 $10,256 $10,188
10/31/91 $11,438 $10,547 $10,457
11/30/91 $11,155 $10,151 $9,973
12/31/91 $12,767 $10,997 $10,772
1/31/92 $14,065 $11,677 $11,645
2/29/92 $14,852 $12,102 $11,985
3/31/92 $14,056 $11,896 $11,579
4/30/92 $13,339 $11,680 $11,173
5/31/92 $13,360 $11,812 $11,322
6/30/92 $12,194 $11,408 $10,766
7/31/92 $12,532 $11,808 $11,162
8/31/92 $12,123 $11,528 $10,647
9/30/92 $12,256 $11,666 $11,097
10/31/92 $12,644 $11,787 $11,450
11/30/92 $13,850 $12,569 $12,326
12/31/92 $14,441 $12,943 $12,755
1/31/93 $15,103 $13,364 $13,187
2/28/93 $14,755 $13,285 $12,882
3/31/93 $15,372 $13,624 $13,300
4/30/93 $14,979 $13,297 $12,935
5/31/93 $15,618 $13,638 $13,508
6/30/93 $15,697 $13,633 $13,592
7/31/93 $16,078 $13,758 $13,780
8/31/93 $16,942 $14,187 $14,375
9/30/93 $17,715 $14,519 $14,781
10/31/93 $16,108 $14,921 $15,161
11/30/93 $17,502 $14,637 $14,662
12/31/93 $18,005 $15,023 $15,163
1/31/94 $18,387 $15,580 $15,639
2/28/94 $18,107 $15,561 $15,582
3/31/94 $17,062 $15,041 $14,759
4/30/94 $16,871 $15,098 $14,847
5/31/94 $16,616 $15,158 $14,680
6/30/94 $16,221 $14,828 $14,182
7/31/94 $16,310 $14,944 $14,415
8/31/94 $17,075 $15,488 $15,218
9/30/94 $17,062 $15,443 $15,167
10/31/94 $16,945 $15,423 $15,107
11/30/94 $16,272 $14,780 $14,497
12/31/94 $16,510 $14,917 $14,887
1/31/95 $16,561 $15,081 $14,699
2/28/95 $17,203 $15,534 $15,310
3/31/95 $17,614 $15,645 $15,574
4/30/95 $17,666 $16,017 $15,920
5/31/95 $18,026 $16,324 $16,194
6/30/95 $18,514 $16,857 $17,034
7/31/95 $19,747 $17,590 $18,015
8/31/95 $20,698 $17,814 $18,388
9/30/95 $21,083 $18,119 $18,716
10/31/95 $19,991 $17,354 $17,679
11/30/95 $20,955 $17,892 $18,631
12/31/95 $21,822 $18,110 $19,122
1/31/96 $21,850 $18,347 $19,102
2/29/96 $22,946 $18,711 $19,697
3/31/96 $23,473 $19,075 $20,098
4/30/96 $24,868 $19,731 $21,173
5/31/96 $25,893 $20,382 $22,007
6/30/96 $25,281 $19,984 $21,103
7/31/96 $23,857 $18,859 $19,260
8/31/96 $25,053 $19,650 $20,376
9/30/96 $25,899 $20,167 $21,175
10/31/96 $26,278 $20,309 $20,848
11/30/96 $27,535 $21,151 $21,707
12/31/96 $28,445 $21,772 $22,276
1/31/97 $28,952 $22,243 $22,721
2/28/97 $28,576 $22,266 $22,171
3/31/97 $27,954 $21,735 $21,124
4/30/97 $27,692 $21,727 $21,164
5/31/97 $30,702 $23,681 $23,540
6/30/97 $32,141 $24,901 $24,549
7/31/97 $33,982 $26,181 $25,691
8/31/97 $34,693 $26,755 $26,279
9/30/97 $36,760 $28,496 $28,203
10/31/97 $35,603 $27,703 $26,964
11/30/97 $35,471 $27,515 $26,789
12/31/97 $35,837 $28,044 $27,256
1/31/98 $35,048 $27,538 $26,828
2/28/98 $37,531 $29,276 $28,811
3/31/98 $39,206 $30,563 $30,000
4/30/98 $39,032 $30,865 $30,166
5/31/98 $37,358 $29,769 $28,541
6/30/98 $36,877 $29,218 $28,601
7/31/98 $34,490 $27,267 $26,286
8/31/98 $38,561 $22,669 $21,161
9/30/98 $30,025 $23,491 $22,839
10/31/98 $31,603 $24,347 $23,770
11/30/98 $33,393 $25,428 $25,016
12/31/98 $35,451 $26,162 $26,564
1/31/99 $33,789 $25,862 $26,917
2/28/99 $31,405 $23,696 $24,737
3/31/99 $31,425 $23,406 $25,123
4/30/99 $33,985 $25,560 $27,374
5/31/99 $34,669 $26,471 $27,774
6/30/99 $36,271 $27,687 $29,030
7/31/99 $35,822 $27,382 $28,233
8/31/99 $34,630 $26,255 $27,189
9/30/99 $33,868 $25,586 $27,195
10/31/99 $33,535 $24,889 $27,305
11/30/99 $34,232 $25,520 $28,935
12/31/99 $35,562 $26,656 $32,210
1/31/00 $34,261 $25,641 $31,693
2/29/00 $36,683 $26,387 $36,927
3/31/00 $38,764 $27,616 $34,492
</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 NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN FEE WAIVERS AND
REIMBURSEMENTS, AND THAT, WITHOUT SUCH WAIVERS, PERFORMANCE, AND THEREFORE
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.
(b) DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER CATEGORY
HAS BEEN 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.
(c) RUSSELL 2000 INDEX IS AN UNMANAGED INDEX COMPRISING 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.
(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.
* NOT ANNUALIZED.
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES WORLDWIDE FUND
[PHOTO] [PHOTO] [PHOTO]
DANIEL J. FUSS E. JOHN DEBEER QUENTIN P. FAULKNER
[PHOTO] [PHOTO] [PHOTO]
ESWAR MENON JOHN TRIBOLET ALEXANDER MUROMCEW
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) $11.0 MM
PERFORMANCE
For the six-month period ended March 31, 2000, the Institutional and Retail
classes of the Worldwide Fund returned 57.68% and 57.46%, respectively, compared
to the 2.27% return for the Lehman Brothers Government/Corporate Bond Index and
the 17.51% return for the Standard & Poor's 500 Index. The average global
flexible portfolio fund, as measured by Lipper Inc., posted a total return of
16.84% for the same period.
PORTFOLIO REVIEW
During the fourth quarter of 1999, the foreign-stock component of the Fund
benefited from the strong international stock market and returned a spectacular
118%. By year-end, this component represented 53% of the Fund's portfolio. As we
entered 2000, we decided to take some profits from this area of the Fund and, by
quarter-end, redistributed a significant portion to the other three portfolio
components-U.S. stocks, U.S. bonds and foreign bonds.
In the first quarter of 2000, we saw all four portfolio components perform well
against the Fund's benchmarks. In particular, the U.S. stock component was
exceptionally strong. Also, the domestic bond portfolio benefited from carefully
chosen high-yield bonds, and the foreign bond portfolio benefited from emerging
markets exposure.
PORTFOLIO POSITIONING
By the end of the six-month period, combined U.S. and foreign stock exposure was
fairly conservative at 54% of the portfolio. Combined foreign stocks and bonds
were quite high at 47% of the portfolio--one of the highest allocations in the
Fund's Lipper universe. This high foreign commitment is consistent with our
belief that foreign economies are in the early stages of their growth cycle.
/s/ Daniel J.Fuss /s/ E. John Debeer /s/ Quentin P. Faulkner
Daniel J.Fuss E. John Debeer Quentin P. Faulkner
/s/ Eswar Menon /s/ John Tribolet /s/ Alexander Muromcew
Eswar Menon John Tribolet Alexander Muromcew
LOOMIS SAYLES EQUITY FUNDS 29
<PAGE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL RETURNS (%)-PERIODS ENDED MARCH 31, 2000
- -----------------------------------------------------------------------------------------------------------
Since
6 Months* 1 Year 3 Years Inception(a)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES WORLDWIDE FUND (INSTITUTIONAL) 57.68 70.09 22.98 19.85
LOOMIS SAYLES WORLDWIDE FUND (RETAIL) 57.46 69.89 22.67 19.51
Lipper Global Flexible Portfolio Funds Index(b) 15.98 23.52 15.17 14.18
S&P 500 Index(c) 17.51 17.94 27.40 25.39
</TABLE>
CUMULATIVE PERFORMANCE-MAY 31, 1996 TO MARCH 31, 2000
- --------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles Lipper Global Flexible S&P 500
Worldwide Fund(d) Portfolio Funds Index Index
<S> <C> <C> <C>
5/31/96 $10,000 $10,000 $10,000
6/30/96 $10,030 $10,041 $10,038
7/31/96 $9,693 $9,796 $9,595
8/31/96 $9,931 $9,941 $9,798
9/30/96 $10,248 $10,220 $10,349
10/31/96 $10,446 $10,346 $10,634
11/30/96 $10,951 $10,786 $11,437
12/31/96 $10,826 $10,802 $11,210
1/31/97 $10,826 $11,002 $11,910
2/28/97 $10,847 $11,065 $12,004
3/31/97 $10,826 $10,884 $11,512
4/30/97 $10,928 $10,991 $12,198
5/31/97 $11,244 $11,453 $12,944
6/30/97 $11,376 $11,774 $13,519
7/31/97 $11,985 $12,258 $14,595
8/31/97 $11,698 $11,906 $13,778
9/30/97 $12,160 $12,413 $14,532
10/31/97 $11,461 $11,973 $14,047
11/30/97 $11,472 $12,011 $14,697
12/31/97 $11,207 $12,114 $14,949
1/31/98 $11,548 $12,143 $15,114
2/28/98 $12,252 $12,691 $16,204
3/31/98 $12,366 $13,117 $17,033
4/30/98 $12,207 $13,232 $17,207
5/31/98 $11,684 $13,119 $16,912
6/30/98 $11,195 $13,109 $17,598
7/31/98 $11,195 $12,980 $17,412
8/31/98 $10,002 $11,544 $14,897
9/30/98 $9,991 $11,729 $15,852
10/31/98 $10,707 $12,341 $17,139
11/30/98 $11,343 $12,895 $18,178
12/31/98 $11,541 $13,203 $19,224
1/31/99 $11,702 $13,360 $20,028
2/28/99 $11,479 $13,035 $19,406
3/31/99 $11,839 $13,459 $20,182
4/30/99 $12,336 $14,182 $20,963
5/31/99 $12,398 $13,956 $20,488
6/30/99 $12,684 $14,473 $21,606
7/31/99 $12,920 $14,464 $20,929
8/31/99 $12,870 $14,413 $20,826
9/30/99 $12,771 $14,334 $20,255
10/31/99 $13,267 $14,625 $21,536
11/30/99 $15,342 $15,138 $21,979
12/31/99 $18,521 $16,156 $23,268
1/31/00 $17,890 $15,826 $22,099
2/29/00 $20,442 $16,706 $21,681
3/31/00 $20,133 $16,625 $23,801
</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.
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT INVESTORS' SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN FEE WAIVERS AND
REIMBURSEMENTS, AND THAT, WITHOUT SUCH WAIVERS, PERFORMANCE, AND THEREFORE
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.
(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.
(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.
(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.
* NOT ANNUALIZED.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES AGGRESSIVE GROWTH FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-95.1% OF NET ASSETS
BROADCASTING--4.9%
Hispanic Broadcasting Corp. * 14,400 $ 1,630,800
Pegasus Communications Corp. * 5,200 731,900
Univision Communications, Inc. Class A * 11,000 1,243,000
-----------
3,605,700
-----------
BUSINESS SERVICES--6.3%
Art Technology Group, Inc. * 18,800 1,234,925
Critical Path, Inc. * 8,400 714,000
Exodus Communications, Inc. * 5,600 786,800
Globix Corp. * 14,400 549,000
Macrovision Corp. * 11,200 964,600
NaviSite, Inc. * 3,500 426,125
-----------
4,675,450
-----------
COMMUNICATIONS EQUIPMENT--21.3%
ArrowPoint Communications, Inc. * 5,400 639,816
Brocade Communications Systems, Inc. * 11,200 2,008,300
Ciena Corp. * 14,100 1,778,362
Copper Mountain Networks, Inc. * 8,400 688,275
E-Tek Dynamics, Inc. * 5,600 1,317,400
Foundry Networks, Inc. * 5,400 776,250
Polycom, Inc. * 15,000 1,187,813
Powerwave Technologies, Inc. * 4,400 550,000
QLogic Corp. * 11,300 1,531,150
Redback Networks, Inc. * 2,800 839,825
Research In Motion Ltd. * 10,700 1,139,550
RF Micro Devices, Inc. * 9,900 1,330,312
SDL, Inc. * 9,400 2,001,025
-----------
15,788,078
-----------
COMPUTER SOFTWARE--11.9%
Inktomi Corp. * 7,500 1,462,500
Macromedia, Inc. * 17,900 1,616,594
Mercury Interactive Corp. * 16,900 1,339,325
Peregrine Systems, Inc. * 28,200 1,891,162
Phone.com, Inc. * 5,200 848,250
Portal Software, Inc. * 9,400 535,213
TIBCO Software, Inc. * 13,700 1,116,550
-----------
8,809,594
-----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--10.9%
Applied Micro Circuits Corp. * 14,600 2,190,912
Atmel Corp. * 31,900 1,646,838
Cree Research, Inc. * 7,900 891,713
PMC Sierra, Inc. * 9,000 1,833,187
SanDisk Corp. * 12,600 1,543,500
-----------
8,106,150
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES AGGRESSIVE GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
FINANCIAL SERVICES--0.8%
S1 Corp. * 7,200 $ 616,950
-----------
HEALTH CARE--BIOTECHNOLOGY--4.9%
Abgenix, Inc. * 2,750 379,844
Affymetrix, Inc. * 2,200 326,563
Biogen, Inc. * 9,400 656,825
IDEC Pharmaceuticals Corp. * 5,600 550,200
MedImmune, Inc. * 5,900 1,027,337
Millennium Pharmaceuticals, Inc. * 2,800 363,650
Tularik, Inc. * 9,600 296,400
-----------
3,600,819
-----------
HEALTH CARE--MEDICAL TECHNOLOGY--2.2%
MiniMed, Inc. * 12,700 1,644,650
-----------
HEALTH CARE--PRODUCTS--0.9%
QLT Phototherapeutics, Inc. * 11,300 624,325
-----------
LEISURE--2.1%
Harley-Davidson, Inc. 19,900 1,579,562
-----------
MACHINERY--6.0%
Credence Systems Corp. * 10,900 1,363,863
KLA-Tencor Corp. * 20,000 1,685,000
Novellus Systems, Inc. * 25,100 1,408,737
-----------
4,457,600
-----------
OIL & GAS DRILLING EQUIPMENT--6.1%
BJ Services Co. * 20,000 1,477,500
Ensco International, Inc. 42,600 1,538,925
Noble Drilling Corp. * 36,300 1,504,181
-----------
4,520,606
-----------
RETAIL--SPECIALTY--4.2%
Bed Bath & Beyond, Inc. * 39,100 1,539,563
Tiffany & Co. 18,500 1,547,062
-----------
3,086,625
-----------
SECURITIES--1.9%
Lehman Brothers Holdings, Inc. 14,500 1,406,500
-----------
TELECOMMUNICATIONS--7.5%
Aether Systems, Inc. * 2,700 490,050
American Tower Corp. Class A * 28,400 1,402,250
Covad Communications Group, Inc. * 8,600 623,500
Metromedia Fiber Network, Inc. Class A * 10,300 996,525
Net2Phone, Inc. * 11,700 691,762
TeleCorp PCS, Inc. Class A * 15,000 776,250
Viatel, Inc. * 11,800 592,213
-----------
5,572,550
-----------
</TABLE>
31
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES AGGRESSIVE GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
UTILITIES--3.2%
Calpine Corp. * 10,000 $ 940,000
Montana Power Co. 22,700 1,452,800
-----------
2,392,800
-----------
TOTAL COMMON STOCKS
(Identified Cost $53,695,596) 70,487,959
-----------
<CAPTION>
FACE
AMOUNT
- --------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-8.0% OF NET ASSETS
Repurchase Agreement with State Street Bank and
Trust Co., dated 3/31/00 at 4.750% to be
repurchased at $5,909,338 on 4/03/00 collateralized
by $4,870,000 U.S. Treasury Bond, 8.000% due
11/15/21 with a value of $6,030,204 $5,907,000 5,907,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $5,907,000) 5,907,000
-----------
TOTAL INVESTMENTS--103.1%
(IDENTIFIED COST $59,602,596) @ 76,394,959
Liabilities, Less Cash and Other Assets--(3.1%) (2,263,593)
-----------
NET ASSETS--100% $74,131,366
===========
</TABLE>
+ See Note 1.
* Non-income producing security.
@ At March 31, 2000, the net unrealized appreciation on investments based on
cost of $59,602,596 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 $19,989,890
and $3,197,527, respectively, resulting in net unrealized appreciation of
$16,792,363.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES CORE VALUE FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-97.6% OF NET ASSETS
AEROSPACE/DEFENSE--1.5%
Boeing Co. 6,200 $ 235,213
Litton Industries, Inc. * 11,900 525,831
-----------
761,044
-----------
AUTO & RELATED--2.5%
General Motors Corp. 15,000 1,242,188
-----------
BANKS/SAVINGS & LOANS--2.6%
Chase Manhattan Corp. 6,224 542,655
PNC Bank Corp. 17,400 784,087
-----------
1,326,742
-----------
BEVERAGES--1.4%
Anheuser-Busch Cos., Inc. 11,400 709,650
-----------
BROADCASTING--1.8%
CBS Corp. * 6,000 339,750
MediaOne Group, Inc. * 7,000 567,000
-----------
906,750
-----------
CHEMICALS--MAJOR--1.4%
Praxair, Inc. 16,500 686,813
-----------
CHEMICALS--SPECIALTY--1.3%
Monsanto Co. 12,200 628,300
-----------
COMMUNICATIONS EQUIPMENT--2.7%
ADC Telecommunications, Inc. * 4,900 263,987
Lucent Technologies, Inc. 8,800 534,600
Motorola, Inc. 4,000 569,500
-----------
1,368,087
-----------
COMPUTER HARDWARE--6.5%
Apple Computer, Inc. * 3,800 516,087
Compaq Computer Corp. 31,000 825,375
Hewlett-Packard Co. 5,100 676,069
International Business Machines Corp. 10,800 1,274,400
-----------
3,291,931
-----------
COMPUTER SOFTWARE--2.9%
Computer Sciences Corp. * 7,400 585,525
Compuware Corp. * 20,500 431,781
Microsoft Corp. * 4,300 456,875
-----------
1,474,181
-----------
DATA PROCESSING SERVICES--2.2%
Dun & Bradstreet Corp. 11,700 334,913
First Data Corp. 18,000 796,500
-----------
1,131,413
-----------
ELECTRICAL EQUIPMENT--1.1%
Emerson Electric Co. 10,500 555,188
-----------
</TABLE>
33
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES CORE VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
ELECTRONIC COMPONENTS--2.2%
Koninklijke (Royal) Philips Electronics NV ADR 5,300 $ 907,956
Linear Technology Corp. 4,000 220,000
-----------
1,127,956
-----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--3.1%
Analog Devices, Inc. * 6,500 523,656
Cypress Semiconductor Corp. * 5,000 246,563
Intel Corp. 6,000 791,625
-----------
1,561,844
-----------
ENTERTAINMENT--1.1%
Walt Disney Co. 13,000 537,875
-----------
FINANCIAL SERVICES--7.0%
CIT Group, Inc. Class A 21,100 411,450
Citigroup, Inc. 20,000 1,186,250
Finova Group, Inc. 11,224 188,703
FleetBoston Financial Corp. 37,400 1,365,100
KeyCorp 20,000 380,000
-----------
3,531,503
-----------
FOOD--PACKAGED & MISCELLANEOUS--1.1%
Sara Lee Corp. 29,900 538,200
-----------
FOREST & PAPER PRODUCTS--1.8%
Georgia-Pacific Corp. 11,100 439,144
Willamette Industries, Inc. 11,600 465,450
-----------
904,594
-----------
GOVERNMENT AGENCIES--1.6%
Federal National Mortgage Association 13,900 784,481
-----------
Health Care--Drugs--3.4%
Bristol Myers Squibb Co. 7,600 438,900
Merck & Co., Inc. 10,000 621,250
Pharmacia & Upjohn, Inc. 11,000 651,750
-----------
1,711,900
-----------
HEALTH CARE--PRODUCTS--1.1%
Baxter International, Inc. 9,200 576,725
-----------
HEALTH CARE--SERVICES--2.1%
Tenet Healthcare Corp. 47,000 1,081,000
-----------
HOUSING & BUILDING MATERIALS--0.9%
Black & Decker Corp. 12,100 454,506
-----------
INSURANCE--7.1%
Ace Ltd. 23,100 528,412
Allstate Corp. 18,896 449,961
American International Group, Inc. 6,200 678,900
Aon Corp. 12,100 390,225
Chubb Corp. 3,800 256,738
CIGNA Corp. 6,700 507,525
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES CORE VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
INSURANCE--CONTINUED
Marsh & McLennan Cos., Inc. 2,500 $ 275,781
Reliastar Financial Corp. 14,200 481,025
-----------
3,568,567
-----------
LEISURE--1.1%
Hasbro, Inc. 32,200 531,300
-----------
MANUFACTURING--2.2%
Eaton Corp. 7,700 600,600
Minnesota Mining & Manufacturing Co. 6,000 531,375
-----------
1,131,975
-----------
METALS--0.8%
Alcoa, Inc. 5,600 393,400
-----------
NATURAL GAS--2.7%
Coastal Corp. 7,100 326,600
Columbia Energy Group 12,400 734,700
El Paso Energy Corp. 8,000 323,000
-----------
1,384,300
-----------
OIL & GAS DRILLING EQUIPMENT--3.3%
Baker Hughes, Inc. 20,000 605,000
Nabors Industries, Inc. * 10,100 392,006
Transocean Sedco Forex, Inc. 13,000 667,063
-----------
1,664,069
-----------
OIL & GAS--MAJOR INTEGRATED--7.6%
Atlantic Richfield Co. 7,300 620,500
Conoco, Inc. 27,300 672,262
Exxon Mobil Corp. 16,500 1,283,906
Texaco, Inc. 11,300 605,963
USX Marathon Group 26,100 680,231
-----------
3,862,862
-----------
PERSONAL CARE--1.6%
Kimberly Clark Corp. 14,500 812,000
-----------
PUBLISHING--1.1%
Gannett Co., Inc. 8,100 570,038
-----------
RESTAURANTS--1.0%
McDonald's Corp. 13,000 488,313
-----------
RETAIL--GENERAL--2.3%
Federated Department Stores, Inc. * 18,200 759,850
TJX Companies, Inc. 19,100 423,781
-----------
1,183,631
-----------
SECURITIES--1.8%
Morgan Stanley Dean Witter & Co. 11,300 921,656
-----------
TELECOMMUNICATIONS--9.0%
AT&T Corp. 8,000 450,000
BellSouth Corp. 10,700 502,900
</TABLE>
35
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES CORE VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
TELECOMMUNICATIONS--CONTINUED
GTE Corp. 15,100 $ 1,072,100
MCI WorldCom, Inc. * 19,600 888,125
SBC Communications, Inc. 26,080 1,095,360
Sprint Corp. 8,900 560,700
-----------
4,569,185
-----------
UTILITIES--0.5%
Constellation Energy Group 8,600 274,125
-----------
Utilities--Electric--2.2%
Texas Utilities Co. 8,300 246,406
Unicom Corp. 23,900 872,350
-----------
1,118,756
-----------
TOTAL COMMON STOCKS
(Identified Cost $46,890,184) 49,367,048
-----------
TOTAL INVESTMENTS--97.6%
(IDENTIFIED COST $46,890,184) @ 49,367,048
Cash and Other Assets, Less Liabilities--2.4% 1,195,959
-----------
NET ASSETS--100% $50,563,007
===========
</TABLE>
+ See Note 1.
* Non-income producing security.
@ At March 31, 2000, the net unrealized appreciation on investments based on
cost of $46,890,184 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 $6,024,539
and $3,547,675, respectively, resulting in net unrealized appreciation of
$2,476,864.
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 MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-92.7% OF NET ASSETS
ARGENTINA--1.0%
Telecom Argentina Stet - France Telecom SA Class B ADR 1,300 $ 45,175
-----------
AUSTRALIA--4.3%
BMCMedia.com Ltd. * 62,000 195,777
-----------
BRAZIL--3.3%
Embratel Participacoes SA ADR 4,000 102,500
Telecomunicacoes Brasileiras SA ADR 300 44,906
-----------
147,406
-----------
CROATIA--3.4%
Pliva d.d. GDR 4,500 68,625
Zagrebacka Banka d.d. GDR 5,000 86,250
-----------
154,875
-----------
HONG KONG--6.6%
China Telecom (Hong Kong) Ltd. * 8,000 70,378
Li & Fung Ltd. 16,000 74,590
Pacific Century CyberWorks Ltd. * 65,000 151,929
-----------
296,897
-----------
INDIA--11.4%
Gujarat Ambuja Cements Ltd. GDR 4,800 21,600
ICICI Bank Ltd. ADR * 10,000 146,250
Infosys Technologies Ltd. ADR 500 96,500
Mahanagar Telephone Nigam Ltd. GDR 3,500 49,000
Satyam Infoway Ltd. ADR * 1,200 64,350
SSI Ltd. GDR 144A * 10,000 135,000
-----------
512,700
-----------
ISRAEL--12.2%
BATM Advanced Communications Ltd. 1,000 92,342
Check Point Software Technologies Ltd. * 1,000 171,062
Commtouch Software Ltd. * 2,400 112,950
Gilat Satellite Networks Ltd. 850 99,663
Orckit Communications Ltd. * 1,100 73,700
-----------
549,717
-----------
MEXICO--8.0%
Consorcio Ara SA de CV * 23,000 33,687
Corporacion Interamericana de Entretenimiento SA, Series B * 10,000 50,186
Grupo Financiero Banamex Accival SA de CV, Series O * 19,000 86,963
Grupo Televisa SA ADR * 1,600 108,800
Telefonos de Mexico SA ADR 1,200 80,400
-----------
360,036
-----------
POLAND--1.1%
Polski Koncern Naftowy SA GDR * 4,300 47,300
-----------
RUSSIA--4.3%
OAO LUKoil ADR 3,000 195,000
-----------
</TABLE>
37
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES EMERGING MARKETS FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
SINGAPORE--5.8%
Datacraft Asia Ltd. 11,000 $ 102,850
Natsteel Electronics Ltd. 7,000 45,800
OMNI Industries Ltd. 28,000 65,755
St Assembly Test Services Ltd. ADR * 1,000 48,500
-----------
262,905
-----------
SOUTH AFRICA--1.8%
De Beers Cons Mines ADR 1,500 34,406
Dimension Data Holdings Ltd. 5,054 45,085
-----------
79,491
-----------
SOUTH KOREA--8.6%
Haansoft, Inc. 2,700 63,515
Korea Telecom ADR 1,500 65,625
Korea Thrunet Co. Ltd. Class A * 1,400 54,163
Samsung Electronics 460 139,425
SK Telecom Co. Ltd. ADR 1,700 66,300
-----------
389,028
-----------
TAIWAN--4.4%
GigaMedia Ltd. * 2,500 135,625
Taiwan Semiconductor Manufacturing Co. Ltd. ADR 1,100 62,700
-----------
198,325
-----------
TURKEY--3.6%
Haci Omer Sabanci Holding AS 1,000,000 18,254
Haci Omer Sabanci Holding AS 1,260,000 21,823
Vestel Elektronik Sanayi ve Ticaret AS * 185,000 62,041
Yapi ve Kredi Bankasi AS 2,300,000 61,510
-----------
163,628
-----------
UNITED STATES--12.9%
AsiaInfo Holdings, Inc. * 1,500 90,750
Comverse Technology, Inc. * 650 122,850
IMPSAT Fiber Networks, Inc. * 4,800 134,400
MIH Ltd. * 800 48,800
StarMedia Network, Inc. * 1,600 48,100
UTStarcom, Inc. * 1,750 136,609
-----------
581,509
-----------
TOTAL COMMON STOCKS
(Identified Cost $3,254,466) 4,179,769
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES EMERGING MARKETS FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -----------------------------------------------------------------------------------------
<S> <C> <C>
RIGHTS-0.5% OF NET ASSETS
TURKEY--0.5%
Haci Omer Sabanci Holding AS, expiring 4/12/00 * 1,000,000 $ 23,772
-----------
TOTAL RIGHTS
(Identified Cost $0) 23,772
-----------
<CAPTION>
FACE
AMOUNT
- -----------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-8.0% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co.,
dated 3/31/00 at 4.750% to be repurchased at $361,143 on
4/03/00 collateralized by $370,000 U.S. Treasury Note,
3.625% due 7/15/02 with a value of $371,528 $361,000 361,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $361,000) 361,000
-----------
TOTAL INVESTMENTS--101.2%
(IDENTIFIED COST $3,615,466) @ 4,564,541
Liabilities, Less Cash and Other Assets--(1.2%) (53,514)
-----------
NET ASSETS--100% $ 4,511,027
===========
</TABLE>
+ 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 March 31, 2000, the net unrealized appreciation on investments based on
cost of $3,615,466 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 $1,136,897 and $187,822, respectively, resulting in net
unrealized appreciation of $949,075.
KEY TO ABBREVIATIONS:
ADR: American Depositary Receipt
GDR: Global Depositary Receipt
<TABLE>
<CAPTION>
Ten Largest Sector Holdings at March 31, 2000
as a Percentage of Net Assets
<S> <C>
Telecommunications 17.6%
Business Services 13.8%
Computer Services 12.8%
Communications Equipment 11.6%
Electronic Components 6.9%
Broadcasting 6.9%
Oil & Gas 5.4%
Computer Software 4.4%
Bank/Savings & Loans 3.3%
Diversified Operations 2.9%
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-98.8% OF NET ASSETS
AUTO & RELATED--0.5%
Toyoda Gosei Co. Ltd. 1,000 $ 73,053
-----------
BROADCASTING--2.4%
Aoi Advertising Promotion, Inc. 2,400 44,416
Grupo Televisa SA ADR * 1,150 78,200
News Corporation Ltd. ADR 2,080 117,000
Pacific Century CyberWorks Ltd. * 10,500 24,542
Scoot.com Plc * 27,000 100,912
-----------
365,070
-----------
BUSINESS SERVICES--6.9%
Art Technology Group, Inc. * 1,600 105,100
BMCMedia.com Ltd. * 52,811 166,761
Commerce One, Inc. * 500 74,625
Commtouch Software Ltd. * 2,000 94,125
Enea Data AB 450 86,057
Exodus Communications, Inc. * 900 126,450
Globix Corp. * 2,000 76,250
Macrovision Corp. * 2,000 172,250
Satama Interactive Oyj * 1,500 34,472
StarMedia Network, Inc. * 4,000 120,250
-----------
1,056,340
-----------
COMMUNICATIONS EQUIPMENT--21.1%
ADVA AG Optical Networking * 250 157,996
Advanced Fibre Communications, Inc. * 2,000 125,375
ArrowPoint Communications, Inc. * 500 59,242
Brocade Communications Systems, Inc. * 800 143,450
Ciena Corp. * 1,100 138,738
Cisco Systems, Inc. * 2,000 154,625
Comverse Technology, Inc. * 900 170,100
Copper Mountain Networks, Inc. * 1,200 98,325
Foundry Networks, Inc. * 800 115,000
Gilat Satellite Networks Ltd. 800 93,800
JDS Uniphase Corp. * 1,000 120,563
Juniper Networks, Inc. * 500 131,781
Nokia Oyj * 480 101,577
Nortel Networks Corp. 720 90,235
Powerwave Technologies, Inc. * 800 100,000
QLogic Corp. * 1,100 149,050
QUALCOMM, Inc. * 900 134,381
Redback Networks, Inc. * 500 149,969
Research In Motion Ltd. * 900 95,850
SDL, Inc. * 800 170,300
Sycamore Networks, Inc. * 1,100 141,900
Telefonaktiebolaget LM Ericsson 2,200 193,533
Telelogic AB 390 35,257
United Pan-Europe Communications NV * 1,200 56,109
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS--AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE +
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--CONTINUED
COMMUNICATIONS EQUIPMENT--CONTINUED
UTStarcom, Inc. * 3,750 $ 292,734
-----------
3,219,890
-----------
COMPUTER HARDWARE--4.4%
EMC Corp. * 1,200 150,000
Legend Holdings Ltd. * 80,000 127,913
Network Appliance, Inc. * 2,200 182,050
Psion Plc 1,000 65,658
Sun Microsystems, Inc. * 1,500 140,555
-----------
666,176
-----------
COMPUTER SERVICES--11.4%
AsiaInfo Holdings, Inc. * 2,500 151,250
Baltimore Technologies Plc ADR * 445 63,635
Check Point Software Technologies Ltd. * 800 136,850
CMG Plc 800 68,397
CMGI, Inc. * 600 67,988
Datacraft Asia Ltd. 16,000 149,600
Framtidsfabriken AB * 1,600 39,128
GFT Technologies AG 100 23,939
IBA Technologies Ltd. * 200,000 230,489
Infosys Technologies Ltd. ADR 750 144,750
Logica Plc 4,000 135,965
Melbourne IT Ltd. * 11,800 101,991
NHC Communications, Inc. * 11,000 90,847
Satyam Infoway Ltd. ADR * 1,400 75,075
Trans Cosmos, Inc. 500 141,236
Yahoo! Inc. * 700 119,962
-----------
1,741,102
-----------
COMPUTER SOFTWARE--12.4%
BEA Systems, Inc. * 1,300 95,387
Comptel Oyj 1,700 188,178
i2 Technologies, Inc. * 800 97,700
Inktomi Corp. * 800 156,000
Justsystem Corp. * 1,000 76,949
Kana Communications, Inc. * 800 54,400
Macromedia, Inc. * 1,600 144,500
MatrixOne, Inc. * 1,400 55,912
Mercury Interactive Corp. * 1,100 87,175
Open Telecommunications Ltd. * 17,000 164,982
Phone.com, Inc. * 800 130,500
Portal Software, Inc. * 1,500 85,406
Sausage Software Ltd. * 17,800 64,780
Softbank Corp. * 100 89,125
SSI Ltd. GDR 144A * 10,000 135,000
TIBCO Software, Inc. * 1,000 81,500
VeriSign, Inc. * 500 74,750
41
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS--AS OF MARCH 31, 2000 (UNAUDITED)
<CAPTION>
SHARES VALUE +
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--CONTINUED
COMPUTER SOFTWARE--CONTINUED
Veritas Software Co. * 800 $ 104,800
-----------
1,887,044
-----------
ELECTRONIC COMPONENTS--8.0%
ce Consumer Electronic AG 300 59,751
DSP Group, Inc. * 2,000 132,000
Epcos AG * 1,600 210,661
Funai Electric Co. Ltd. 200 124,677
Hitachi AIC, Inc. 4,000 47,533
Kyocera Corp. ADR 10 1,660
Pace Micro Technology Plc 4,600 67,744
Samsung Electronics 800 242,479
SONY Corp. ADR 425 119,053
Taiwan Semiconductor Manufacturing Co. Ltd. ADR 2,150 122,550
Vestel Elektronik Sanayi ve Ticaret AS * 245,000 82,163
-----------
1,210,271
-----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--11.8%
Analog Devices, Inc. * 1,600 128,900
Applied Micro Circuits Corp. * 1,000 150,062
ARM Holdings Plc * 1,100 66,550
ASM Lithography Holding NV * 1,460 163,155
Broadcom Corp. Class A * 500 121,438
Infineon Technologies AG * 3,400 185,736
Intel Corp. 1,000 131,938
PMC Sierra, Inc. * 1,000 203,687
SanDisk Corp. * 1,300 159,250
STMicroelectronics NV 1,100 205,906
Texas Instruments, Inc. 700 112,000
Xilinx, Inc. * 2,000 165,625
-----------
1,794,247
-----------
ELECTRONIC MEASURING INSTRUMENTS--2.0%
Agilent Technologies, Inc. * 1,200 124,800
Orbotech Ltd. * 2,100 178,500
-----------
303,300
-----------
ENTERTAINMENT--0.5%
Avex, Inc. 400 76,170
-----------
FINANCIAL SERVICES--0.5%
S1 Corp. * 800 68,550
-----------
HEALTH CARE--BIOTECHNOLOGY--2.0%
Abgenix, Inc. * 200 27,625
Affymetrix, Inc. * 200 29,687
Cambridge Antibody Technology Group Plc * 800 26,429
Celera Genomics * 400 36,625
Celltech Group Plc * 4,000 71,645
Gene Logic, Inc. * 600 25,237
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS--AS OF MARCH 31, 2000 (UNAUDITED)
<CAPTION>
SHARES VALUE +
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--CONTINUED
HEALTH CARE--BIOTECHNOLOGY--CONTINUED
Immunex Corp. * 900 $ 57,094
Millennium Pharmaceuticals, Inc. * 200 25,975
-----------
300,317
-----------
HEALTH CARE--DRUGS--0.8%
Oxford GlycoSciences Plc * 1,300 35,185
SkyePharma Plc ADR * 51,000 89,317
-----------
124,502
-----------
HEALTH CARE--MEDICAL TECHNOLOGY--1.0%
MiniMed, Inc. * 1,200 155,400
-----------
MACHINERY--4.1%
Applied Materials, Inc. * 1,200 113,100
Credence Systems Corp. * 700 87,588
KLA-Tencor Corp. * 1,800 151,650
Kulicke & Soffa Industries, Inc. * 1,400 89,687
Novellus Systems, Inc. * 1,600 89,800
PRI Automation, Inc. * 1,600 97,800
-----------
629,625
-----------
MANUFACTURING--0.5%
Sato Corp. 2,420 79,437
-----------
TELECOMMUNICATIONS--8.5%
Aether Systems, Inc. * 600 108,900
Davnet Ltd. 34,500 113,000
Embratel Participacoes SA ADR 4,000 102,500
GigaMedia Ltd. * 1,000 54,250
GT Group Telecom, Inc. Class B * 11,000 229,625
Jazztel Plc ADR * 1,400 113,312
KPNQwest NV * 970 51,643
Metromedia Fiber Network, Inc. Class A * 1,500 145,125
Nextel Communications, Inc. Class A * 1,000 148,250
SK Telecom Co. Ltd. ADR 2,600 101,400
Tele1 Europe Holding AB * 7,000 132,650
-----------
1,300,655
-----------
TOTAL COMMON STOCKS
(Identified Cost $15,194,879) 15,051,149
-----------
43
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GLOBAL TECHNOLOGY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS--AS OF MARCH 31, 2000 (UNAUDITED)
<CAPTION>
FACE
AMOUNT VALUE +
- --------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-3.7% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co.,
dated 3/31/00 at 4.750% to be repurchased at $557,220 on
4/03/00 collateralized by $570,000 U.S. Treasury Note,
5.625% due 2/28/01 with a value of $568,782 $557,000 $ 557,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $557,000) 557,000
------------
TOTAL INVESTMENTS--102.5%
(IDENTIFIED COST $15,751,879) @ $15,608,149
Liabilities, Less Cash and Other Assets--(2.5%) (377,389)
------------
NET ASSETS--100% $15,230,760
------------
------------
</TABLE>
+ 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 March 31, 2000, the net unrealized depreciation on investments based on
cost of $15,751,879 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 $1,351,896 and $1,495,626, respectively, resulting in net
unrealized depreciation of $143,730.
KEY TO ABBREVIATIONS:
ADR: American Depositary Receipt
GDR: Global Depositary Receipt
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GROWTH FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE +
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-100.0% OF NET ASSETS
ADVERTISING--2.3%
Omnicom Group, Inc. 10,600 $ 990,438
-----------
BANKS/SAVINGS & LOANS--2.9%
Chase Manhattan Corp. 6,700 584,156
Northern Trust Corp. 10,000 675,625
-----------
1,259,781
-----------
BROADCASTING--3.1%
CBS Corp. * 23,800 1,347,675
-----------
COMMUNICATIONS EQUIPMENT--11.6%
Brocade Communications Systems, Inc. * 2,700 484,144
Cisco Systems, Inc. * 28,000 2,164,750
JDS Uniphase Corp. * 10,900 1,314,131
Nortel Networks Corp. 8,000 1,008,000
-----------
4,971,025
-----------
COMPUTER HARDWARE--7.0%
3Com Corp. * 6,600 367,125
EMC Corp. * 10,000 1,250,000
Hewlett-Packard Co. 5,000 662,813
Sun Microsystems, Inc. * 7,500 702,773
-----------
2,982,711
-----------
COMPUTER SERVICES--3.3%
America Online, Inc. * 20,700 1,392,075
-----------
COMPUTER SOFTWARE--8.3%
i2 Technologies, Inc. * 2,700 329,738
Microsoft Corp. * 13,000 1,381,250
Oracle Corp. * 10,900 850,881
Siebel Systems, Inc. * 3,200 382,200
Veritas Software Co. * 4,500 589,500
-----------
3,533,569
-----------
DIVERSIFIED OPERATIONS--3.3%
General Electric Co. 9,000 1,396,687
-----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--8.5%
Intel Corp. 9,500 1,253,406
PMC Sierra, Inc. * 2,200 448,113
Texas Instruments, Inc. 7,800 1,248,000
Xilinx, Inc. * 8,500 703,906
-----------
3,653,425
-----------
ENTERTAINMENT--1.0%
Walt Disney Co. 10,400 430,300
-----------
45
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<CAPTION>
SHARES VALUE +
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--CONTINUED
FINANCIAL SERVICES--6.3%
Charles Schwab Corp. 13,900 $ 789,694
Citigroup, Inc. 12,500 741,406
Merrill Lynch & Co., Inc. 10,900 1,144,500
-----------
2,675,600
-----------
HEALTH CARE--BIOTECHNOLOGY--2.3%
Amgen, Inc. * 7,300 448,038
Genetech, Inc. * 3,600 547,200
-----------
995,238
-----------
HEALTH CARE--DRUGS--3.8%
Pfizer, Inc. 26,000 950,625
Warner-Lambert Co. 6,800 663,000
-----------
1,613,625
-----------
HEALTH CARE--MEDICAL TECHNOLOGY--4.3%
Guidant Corp. * 9,400 552,838
Medtronic, Inc. 17,500 900,156
PE Corp.--PE Biosystems Group 3,800 366,700
-----------
1,819,694
-----------
MACHINERY--2.8%
Applied Materials, Inc. * 12,700 1,196,975
-----------
MULTI-INDUSTRY--2.5%
Corning, Inc. 5,600 1,086,400
-----------
NATURAL GAS--3.0%
Enron Corp. 17,300 1,295,338
-----------
OIL & GAS DRILLING EQUIPMENT--4.8%
Schlumberger Ltd. 13,000 994,500
Transocean Sedco Forex, Inc. 20,487 1,051,239
-----------
2,045,739
-----------
PUBLISHING--0.8%
The New York Times Co. Class A 8,400 360,675
-----------
RETAIL--GENERAL--3.9%
Costco Wholesale Corp. * 16,900 888,306
Kohl's Corp. * 7,500 768,750
-----------
1,657,056
-----------
RETAIL--SPECIALTY--4.0%
Gap, Inc. 15,400 767,112
Home Depot, Inc. 14,900 961,050
-----------
1,728,162
-----------
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<CAPTION>
SHARES VALUE +
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--CONTINUED
SECURITIES--2.2%
Morgan Stanley Dean Witter & Co. 11,400 $ 929,813
-----------
TELECOMMUNICATIONS--8.0%
AT&T Corp.--Liberty Media Group Class A * 15,700 930,225
AT&T Corp. 9,200 517,500
Nextel Communications, Inc. Class A * 6,900 1,022,925
US West, Inc. 13,100 951,387
-----------
3,422,037
-----------
TOTAL COMMON STOCKS
(Identified Cost $31,512,905) $42,784,038
-----------
TOTAL INVESTMENTS--100.0%
(IDENTIFIED COST $31,512,905) @ 42,784,038
Liabilities, Less Cash and Other Assets--0.0%) (18,391)
-----------
NET ASSETS--100% $42,765,647
-----------
-----------
</TABLE>
+ See Note 1.
* Non-income producing security.
@ At March 31, 2000, the net unrealized appreciation on investments based on
cost of $31,512,905 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 $11,690,382 and $419,249, respectively, resulting in net
unrealized appreciation of $11,271,133.
See accompanying notes to financial statements.
47
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-99.3% OF NET ASSETS
AUSTRALIA--3.0%
BMCMedia.com Ltd. * 373,215 $ 1,178,500
Davnet Ltd. 254,000 831,944
Melbourne IT Ltd. * 88,000 760,614
News Corporation Ltd. ADR 28,000 1,575,000
News Corporation Ltd. 25,000 349,069
------------
4,695,127
------------
BRAZIL--1.0%
Telecomunicacoes Brasileiras SA ADR 11,000 1,646,562
------------
CANADA--5.5%
Biovail Corp. * 26,000 1,152,125
GT Group Telecom, Inc. Class B * 40,000 835,000
JDS Uniphase Corp. * 20,640 2,488,410
Nortel Networks Corp. 1,800 226,800
Nortel Networks Corp. 21,200 2,656,930
Telesystem International Wireless, Inc. * 39,000 1,415,864
------------
8,775,129
------------
FINLAND--6.8%
Comptel Oyj 19,100 2,114,232
Helsingin Puhelin Oyj 14,700 1,421,674
Nokia Oyj * 21,360 4,520,172
Perlos Oyj 39,300 1,399,900
Satama Interactive Oyj * 5,200 119,502
Sonera Oyj 19,000 1,297,193
------------
10,872,673
------------
FRANCE--6.5%
Alcatel 6,540 1,435,963
Coflexip SA 15,100 1,662,785
Societe Television Francaise 1 2,450 1,806,418
STMicroelectronics NV 10,730 2,008,522
Total Fina SA Class B 11,150 1,670,901
Vivendi 15,100 1,742,310
------------
10,326,899
------------
GERMANY--8.5%
ADVA AG Optical Networking * 5,469 3,456,315
ce Consumer Electronic AG 7,000 1,394,193
Deutsche Telekom AG 18,800 1,512,163
EM. TV & Merchandising AG 20,000 1,643,155
Epcos AG * 16,000 2,106,610
GFT Technologies AG 4,200 1,005,427
Infineon Technologies AG * 8,800 480,728
Siemens AG 13,100 1,881,460
------------
13,480,051
------------
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--CONTINUED
HONG KONG--3.3%
China Telecom (Hong Kong) Ltd. * 161,000 $ 1,416,352
Giordano International Ltd. 1,240,000 1,504,903
Legend Holdings Ltd. * 520,000 831,434
Pacific Century CyberWorks Ltd. * 600,000 1,402,418
------------
5,155,107
------------
INDIA--0.3%
Gujarat Ambuja Cements Ltd. GDR 48,000 216,000
SSI Ltd. GDR 144A * 15,000 202,500
------------
418,500
------------
IRELAND--0.6%
Independent News & Media Plc 91,000 894,062
Ryanair Holdings Plc ADR * 2,500 114,687
------------
1,008,749
------------
ISRAEL--2.3%
BATM Advanced Communications Ltd. 15,000 1,385,128
Check Point Software Technologies Ltd. * 4,000 684,250
Gilat Satellite Networks Ltd. 13,400 1,571,150
------------
3,640,528
------------
ITALY--4.4%
Bipop--Carire Spa 15,900 1,673,232
San Paolo--IMI Spa 106,000 1,452,469
Seat-Pagine Gialle Spa 381,000 1,889,801
Telecom Italia Mobile Spa 166,100 2,039,009
------------
7,054,511
------------
JAPAN--18.4%
Daiwa Securities Group, Inc. 79,000 1,485,121
Fuji Television Network, Inc. 89 1,543,077
Funai Electric Co. Ltd. 2,600 1,620,806
Hikari Tsushin, Inc. 800 614,036
Hoya Corp. 17,000 1,606,195
Japan Telecom Co. Ltd. 34 1,440,608
Kyocera Corp. 8,350 1,395,665
Mobilephone Telecommunications International Ltd. * 20 855,209
Murata Manufacturing Co. Ltd. 10,000 2,430,234
NTT Mobile Communications 46 1,886,329
Orix Corp. 9,480 1,371,237
Sharp Corp. 65,000 1,389,714
Softbank Corp. * 2,300 2,049,871
Sony Corp. * 8,400 1,194,565
Sony Corp. 8,400 1,186,383
Taiyo Yuden Co. Ltd. 29,000 1,872,790
Tokyo Electron Ltd. 11,000 1,660,741
49
<PAGE>
LOOMIS SAYLES EQUITY FUND
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<CAPTION>
SHARES VALUE +
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--CONTINUED
JAPAN--CONTINUED
Trend Micro, Inc. 7,000 $ 1,227,293
Yahoo Japan Corp. 4 2,427,312
------------
29,257,186
------------
MEXICO--1.8%
Grupo Televisa SA ADR * 19,500 1,326,000
Telefonos de Mexico SA ADR 23,800 1,594,600
------------
2,920,600
------------
NETHERLANDS--8.0%
ASM Lithography Holding NV * 15,690 1,753,357
Endemol Entertainment Holding NV 16,500 2,196,141
Equant NV ADR * 12,500 1,063,281
Fortis (NL) NV 59,200 1,516,376
Koninklijke KPN NV 12,700 1,455,050
KPNQwest NV * 26,950 1,434,812
United Pan-Europe Communications NV * 30,000 1,402,715
Versatel Telecom International NV ADR * 38,400 1,857,600
------------
12,679,332
------------
RUSSIA--0.6%
OAO LUKoil ADR 15,000 975,000
------------
SINGAPORE--1.6%
Datacraft Asia Ltd. 158,000 1,477,300
Natsteel Electronics Ltd. 171,000 1,118,822
------------
2,596,122
------------
SOUTH KOREA--2.1%
Haansoft, Inc. 19,000 446,958
Samsung Electronics 9,291 2,816,091
------------
3,263,049
------------
SPAIN--0.8%
Telefonica SA * 51,900 1,311,997
------------
SWEDEN--6.6%
Enea Data AB 11,800 2,256,606
Framtidsfabriken AB * 41,600 1,017,339
Skandia Forsakrings AB 32,000 1,516,922
Tele1 Europe Holding AB * 73,300 1,389,030
Telefonaktiebolaget LM Ericsson 35,200 3,096,523
Telelogic AB 14,000 1,265,647
------------
10,542,067
------------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
TAIWAN--1.1%
Taiwan Semiconductor Manufacturing Co. Ltd. ADR 29,760 $ 1,696,320
------------
TURKEY--0.4%
Yapi ve Kredi Bankasi AS 22,700,000 607,081
------------
UNITED KINGDOM--13.1%
ARM Holdings Plc * 20,500 1,240,246
Billiton Plc 229,000 1,066,429
British Sky Broadcasting Group Plc 43,900 1,237,809
Cable & Wireless Plc 95,000 1,783,232
Celltech Group Plc * 79,000 1,414,980
Colt Telecom Group Plc * 30,800 1,471,101
Jazztel Plc ADR * 27,000 2,185,313
Kingston Communication (Hull) Plc * 88,000 1,396,845
Logica Plc 49,000 1,665,3576
PTL, Inc. * 14,450 1,341,141
Reuters Group Plc 58,300 1,178,807
Scoot.com Plc * 230,000 859,615
Shire Pharmaceutical Group Plc * 93,000 1,572,454
Vodafone Group Plc 421,938 2,351,186
------------
20,764,734
------------
UNITED STATES--2.6%
Comverse Technology, Inc. * 8,500 1,606,500
OpenTV Corp. Class A * 13,000 1,538,875
PMC Sierra, Inc. * 5,000 1,018,437
------------
4,163,812
------------
TOTAL COMMON STOCKS
(Identified Cost $113,773,612) 157,851,136
------------
PREFERRED STOCKS-1.3% of net assets
GERMANY--1.3%
Marschollek, Lautenschlaeger und Partner AG * 3,300 1,974,947
------------
TOTAL PREFERRED STOCKS
(Identified Cost $1,848,953) 1,974,947
------------
TOTAL INVESTMENTS--100.6%
(IDENTIFIED COST $115,622,565) @ 159,826,083
Liabilities, Less Cash and Other Assets--(0.6%) (875,173)
------------
NET ASSETS--100% $158,950,910
------------
------------
</TABLE>
51
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES INTERNATIONAL EQUITY FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
- --------------------------------------------------------------------------------
+ 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 March 31, 2000, the net unrealized appreciation on investments based on
cost of $115,622,565 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 $48,781,778 and $4,578,260, respectively, resulting in net
unrealized appreciation of $44,203,518.
KEY TO ABBREVIATIONS:
ADR: American Depositary Receipt
GDR: Global Depositary Receipt
Ten Largest Sector Holdings at March 31, 2000
as a Percentage of Net Assets
<TABLE>
<S> <C>
Telecommunications 23.1%
Communication Equipment 15.8%
Electronic Components 14.8%
Broadcasting 8.1%
Computer Software 6.3%
Financial Services 5.0%
Electronic Components--Semiconductor 5.0%
Computer Services 4.8%
Diversified Operations 2.3%
Business Services 2.2%
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES MID-CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS-97.0% OF NET ASSETS
<S> <C> <C>
AEROSPACE/DEFENSE--1.4%
General Dynamics Corp. 1,400 $ 69,650
----------
AIRLINES--0.5%
AMR Corp. 800 25,500
----------
AUTO & RELATED--1.0%
Hertz Corp. 1,500 51,094
----------
BANKS/SAVINGS & LOANS--3.6%
Comerica, Inc. 1,700 71,187
PNC Bank Corp. 1,100 49,569
Wilmington Trust Corp. 1,300 63,213
----------
183,969
----------
BEVERAGES--0.8%
Adolph Coors Co. Class B 900 43,031
----------
BROADCASTING--2.4%
Adelphia Communications Corp. Class A * 1,300 63,700
AMFM, Inc. * 900 55,913
----------
119,613
----------
BUSINESS SERVICES--1.6%
Deluxe Corp. 2,000 53,000
Exodus Communications, Inc. * 200 28,100
----------
81,100
----------
CHEMICALS--MAJOR--3.2%
Praxair, Inc. 1,800 74,925
Rohm & Haas Co. 1,900 84,787
----------
159,712
----------
CHEMICALS--SPECIALTY--0.8%
International Flavors & Fragrances, Inc. 1,100 38,569
----------
COMMERCIAL SERVICES--2.9%
Convergys Corp. * 2,200 84,975
Manpower, Inc. 1,700 60,350
----------
145,325
----------
COMMUNICATIONS EQUIPMENT--4.0%
ADC Telecommunications, Inc. * 900 48,487
Amphenol Corp. Class A * 800 81,800
Comverse Technology, Inc. * 200 37,800
JDS Uniphase Corp. * 300 36,169
----------
204,256
----------
</TABLE>
53
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES MID-CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
COMPUTER HARDWARE--2.5%
3Com Corp. * 600 $ 33,375
Apple Computer, Inc. * 200 27,163
Lexmark International Group, Inc. Class A * 300 31,725
Seagate Technology, Inc. * 600 36,150
----------
128,413
----------
COMPUTER SERVICES--0.4%
SABRE Group Holdings, Inc. Class A 578 21,350
----------
COMPUTER SOFTWARE--5.1%
Cadence Design Systems, Inc. * 2,200 45,650
Computer Sciences Corp. * 700 55,387
Electronic Arts, Inc. * 300 21,356
J.D. Edwards & Co. * 1,300 42,331
Parametric Technology Corp. * 2,200 46,338
Veritas Software Co. * 350 45,850
----------
256,912
----------
ELECTRONIC COMPONENTS--2.5%
SCI Systems, Inc. * 1,700 91,481
Viasystems Group, Inc. * 2,200 34,100
----------
125,581
----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--5.8%
Adaptec, Inc. * 900 34,763
Conexant Systems, Inc. * 600 42,600
LSI Logic Corp. * 1,500 108,937
National Semiconductor Corp. * 1,100 66,688
Xilinx, Inc. * 500 41,406
----------
294,394
----------
ELECTRONIC MEASURING INSTRUMENTS--0.5%
Teradyne, Inc. * 300 24,675
----------
FINANCIAL SERVICES--3.9%
Concord EFS, Inc. * 2,900 66,519
eSPEED, Inc. Class A * 700 36,662
Knight/Trimark Group, Inc. Class A * 700 35,700
PMI Group, Inc. 1,200 56,925
----------
195,806
----------
FOOD--PACKAGED & MISCELLANEOUS--1.3%
Sara Lee Corp. 3,600 64,800
----------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES MID-CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
FOREST & PAPER PRODUCTS--2.9%
Fort James Corp. 2,600 $ 57,200
Westvaco Corp. 2,700 90,112
----------
147,312
----------
FREIGHT TRANSPORTATION--1.8%
GATX Corp. 1,600 60,800
USFreightways Corp. 800 29,950
----------
90,750
----------
HEALTH CARE--BIOTECHNOLOGY--0.3%
Biogen, Inc. * 200 13,975
----------
HEALTH CARE--DRUGS--1.0%
Biovail Corp. * 1,100 48,744
----------
HEALTH CARE--MEDICAL TECHNOLOGY--1.2%
Sybron International Corp. * 2,100 60,900
----------
HEALTH CARE--PRODUCTS--2.5%
Biomet, Inc. 1,900 69,113
Waters Corp. * 600 57,150
----------
126,263
----------
HEALTH CARE--SERVICES--2.7%
Universal Health Services, Inc. Class B 1,500 73,500
Wellpoint Health Networks, Inc. Class A * 900 62,887
----------
136,387
----------
INSURANCE--3.8%
John Hancock Financial Services, Inc. * 3,200 57,800
Marsh & McLennan Cos., Inc. 300 33,094
Reliastar Financial Corp. 1,400 47,425
St. Paul Cos., Inc. 1,600 54,600
----------
192,919
----------
MACHINERY--2.2%
Deere & Co. 1,600 60,800
Ingersoll-Rand Co. 1,100 48,675
----------
109,475
----------
MANUFACTURING--2.7%
Eaton Corp. 700 54,600
Parker-Hannifin Corp. 2,000 82,625
----------
137,225
----------
NATURAL GAS--1.2%
Dynegy, Inc. Class A 987 61,934
----------
</TABLE>
55
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES MID-CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
OIL & GAS DRILLING EQUIPMENT--3.7%
<S> <C> <C>
Ensco International, Inc. 1,600 $ 57,800
Key Energy Group, Inc. * 5,800 67,425
Patterson Energy, Inc. * 1,900 60,325
----------
185,550
----------
OIL & GAS EXPLORATION--2.9%
Apache Corp. 2,000 99,500
Kerr-McGee Corp. 800 46,200
----------
145,700
----------
OIL & GAS--MAJOR INTEGRATED--1.8%
USX Marathon Group 3,400 88,613
----------
PUBLISHING--2.4%
Reader's Digest Association, Inc. Class A 1,700 60,137
The New York Times Co. Class A 1,400 60,113
----------
120,250
----------
REAL ESTATE INVESTMENT TRUSTS--2.8%
Equity Office Properties Trust 2,000 50,250
Equity Residential Properties Trust 900 36,169
Spieker Properties, Inc. 1,200 53,400
----------
139,819
----------
RESTAURANTS--1.2%
Wendy's International, Inc. 2,900 58,544
----------
RETAIL--FOOD & DRUG--1.1%
CVS Corp. 1,500 56,344
----------
RETAIL--GENERAL--2.7%
Federated Department Stores, Inc. * 1,400 58,450
TJX Companies, Inc. 3,400 75,437
----------
133,887
----------
SECURITIES--1.0%
Lehman Brothers Holdings, Inc. 500 48,500
----------
TELECOMMUNICATIONS--4.8%
BroadWing, Inc. 1,717 63,851
CenturyTel, Inc. 1,700 63,112
General Motors Corp. Class H * 200 24,900
Intermedia Communications, Inc. * 600 28,988
Primus Telecomm Group, Inc. * 1,200 62,025
----------
242,876
----------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES MID-CAP VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
UTILITIES--5.6%
<S> <C> <C>
Alliant Energy Corp. 1,900 $ 57,831
DQE, Inc. 1,200 54,600
FPL Group, Inc. 1,300 59,881
Niagara Mohawk Holdings, Inc. * 4,400 59,400
Southern Co. 2,300 50,025
----------
281,737
----------
WASTE MANAGEMENT--0.5%
Republic Services, Inc. Class A * 2,300 25,156
----------
TOTAL COMMON STOCKS
(Identified Cost $4,448,819) 4,886,610
----------
TOTAL INVESTMENTS--97.0%
(IDENTIFIED COST $4,448,819) @ 4,886,610
Cash and Other Assets, Less Liabilities--3.0% 152,062
----------
NET ASSETS--100% $5,038,672
----------
----------
</TABLE>
+ See Note 1.
* Non-income producing security.
@ At March 31, 2000, the net unrealized appreciation on investments based on
cost of $4,448,819 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 $677,829
and $240,038, respectively, resulting in net unrealized appreciation of
$437,791.
See accompanying notes to financial statements.
57
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS-97.9% OF NET ASSETS
BANKS/SAVINGS & LOANS--2.2%
<S> <C> <C>
Imperial Bancorp 161,100 $ 4,994,100
----------
BROADCASTING--3.5%
Radio One, Inc. Class A * 50,450 3,361,231
Westwood One, Inc. * 125,800 4,560,250
----------
7,921,481
----------
BUSINESS SERVICES--9.7%
Breakaway Solutions, Inc. * 38,600 1,756,300
Concentric Network Corp. * 49,000 2,695,000
Corporate Executive Board Co. * 41,500 2,106,125
Forrester Research, Inc. * 65,500 3,553,375
Keynote Systems, Inc. * 20,400 2,085,900
Macrovision Corp. * 90,800 7,820,150
Primus Knowledge Solutions, Inc. * 20,500 1,763,000
----------
21,779,850
----------
COMMUNICATIONS EQUIPMENT--17.0%
Anadigics, Inc. * 45,900 3,029,400
C-COR.net Corp. * 109,200 5,350,800
Digital Lightwave, Inc. 64,900 4,044,081
Ditech Communications Corp. * 40,400 4,284,925
Diversinet Corp. * 21,000 375,375
Polycom, Inc. * 58,500 4,632,469
Powerwave Technologies, Inc. * 40,900 5,112,500
SDL, Inc. * 41,700 8,876,887
Turnstone Systems, Inc. * 21,200 2,438,000
----------
38,144,437
----------
COMPUTER HARDWARE--0.9%
Advanced Digital Information Corp. * 58,800 2,013,900
----------
COMPUTER SOFTWARE--9.9%
Aspen Technology, Inc. * 78,800 3,181,550
Inktomi Corp. * 17,200 3,354,000
Macromedia, Inc. * 55,400 5,003,312
MatrixOne, Inc. * 35,300 1,409,794
Mercury Interactive Corp. * 68,400 5,420,700
Netegrity, Inc. * 31,900 2,185,150
Silknet Software, Inc. * 15,900 1,646,644
----------
22,201,150
----------
ELECTRONIC COMPONENTS--2.3%
American Superconductor Corp. * 53,600 2,385,200
Silicon Laboratories, Inc. * 30,850 2,730,225
----------
5,115,425
----------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
ELECTRONIC COMPONENTS--SEMICONDUCTORS--10.9%
<S> <C> <C>
Applied Micro Circuits Corp. * 50,200 $ 7,533,137
Cree Research, Inc. * 39,300 4,435,988
Silicon Storage Technology, Inc. * 83,800 6,190,725
TranSwitch Corp. * 64,575 6,207,272
----------
24,367,122
----------
FINANCIAL SERVICES--2.0%
Digital Insight Corp. * 34,750 1,780,938
S1 Corp. * 31,000 2,656,312
----------
4,437,250
----------
HEALTH CARE--BIOTECHNOLOGY--6.9%
Abgenix, Inc. * 9,200 1,270,750
Alkermes, Inc. * 23,900 2,210,750
Aurora Biosciences Corp. * 20,500 837,937
Celgene Corp. * 10,700 1,065,319
IDEC Pharmaceuticals Corp. * 19,000 1,866,750
ImClone Systems, Inc. * 12,000 922,500
Invitrogen Corp. * 19,200 1,114,800
MedImmune, Inc. * 26,800 4,666,550
Tularik, Inc. * 47,850 1,477,369
----------
15,432,725
----------
HEALTH CARE--DRUGS--0.9%
Priority Healthcare Corp. Class B * 38,400 1,929,600
----------
HEALTH CARE--MEDICAL TECHNOLOGY--4.5%
ArthroCare Corp. 43,950 4,043,400
MiniMed, Inc. * 45,900 5,944,050
----------
9,987,450
----------
MACHINERY--7.4%
Advanced Energy Industries, Inc. * 63,900 3,258,900
Credence Systems Corp. * 47,000 5,880,875
Kulicke & Soffa Industries, Inc. * 33,400 2,139,688
Photon Dynamics, Inc. * 28,700 1,980,300
PRI Automation, Inc. * 53,200 3,251,850
----------
16,511,613
----------
OIL & GAS DRILLING EQUIPMENT--5.9%
Atwood Oceanics, Inc. * 75,100 4,980,069
Marine Drilling Cos., Inc. * 169,500 4,650,656
Pride International, Inc. * 154,300 3,519,969
----------
13,150,694
----------
</TABLE>
59
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
RETAIL--SPECIALTY--4.4%
<S> <C> <C>
Pacific Sunwear of California * 120,900 $ 4,654,650
Talbots, Inc. 86,550 5,095,631
----------
9,750,281
----------
TELECOMMUNICATIONS--9.5%
Adelphia Business Solutions, Inc. Class A * 60,400 3,722,150
AirGate PCS, Inc. * 40,300 4,251,650
Allied Riser Communications Corp. * 94,100 3,269,975
ITC DeltaCom, Inc. * 124,450 4,433,531
Metromedia Fiber Network, Inc. Class A * 22,800 2,205,900
Pinnacle Holdings, Inc. * 59,400 3,281,850
----------
21,165,056
----------
TOTAL COMMON STOCKS
(Identified Cost $154,578,833) 218,902,134
----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENT--3.0% OF NET ASSETS
<S> <C> <C>
Repurchase Agreement with State Street Bank and Trust
Co., dated 3/31/00 at
4.750% to be repurchased at
$6,628,623 on 4/03/00 collateralized by $5,460,000
U.S. Treasury Bond, 8.000% due 11/15/21 with a
value of $6,760,763 $6,626,000 6,626,000
----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $6,626,000) 6,626,000
----------
TOTAL INVESTMENTS--100.9%
(IDENTIFIED COST $161,204,833) @ 225,528,134
Liabilities, Less Cash and Other Assets--(0.9%) (1,924,056)
----------
NET ASSETS--100% $223,604,078
----------
----------
</TABLE>
+ See Note 1.
* Non-income producing security.
@ At March 31, 2000, the net unrealized appreciation on investments based on
cost of $161,204,833 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 $73,012,684
and $8,689,383, respectively, resulting in net unrealized appreciation of
$64,323,301.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE +
- -----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-98.4% OF NET ASSETS
AEROSPACE/DEFENSE--1.3%
Alliant Techsystems, Inc. * 36,200 $ 2,131,275
Newport News Shipbuilding, Inc. 76,600 2,317,150
-------------
4,448,425
-------------
AUTO & RELATED--1.4%
Oshkosh Truck Corp. 89,800 2,789,413
Tower Automotive, Inc. * 138,000 2,259,750
-------------
5,049,163
-------------
BANKS/SAVINGS & LOANS--4.6%
Chittenden Corp. 58,700 1,742,656
City National Corp. 90,200 3,038,612
Commerce Bancorp, Inc. 60,580 2,241,460
Commercial Federal Corp. 90,650 1,507,056
Dime Bancorp, Inc. 75,200 1,391,200
First Midwest Bancorp, Inc. 96,100 2,330,425
Hudson United Bancorp 95,918 2,080,222
Wilmington Trust Corp. 44,900 2,183,263
-------------
16,514,894
-------------
BEVERAGES--0.9%
Pepsi Bottling Group, Inc. 167,800 3,356,000
-------------
BROADCASTING--1.1%
Adelphia Communications Corp. Class A * 41,800 2,048,200
Regent Communications, Inc. * 151,600 1,876,050
-------------
3,924,250
-------------
BUSINESS SERVICES--0.9%
Deluxe Corp. 94,600 2,506,900
Progress Software Corp. * 27,500 644,531
-------------
3,151,431
-------------
CHEMICALS--0.4%
Dionex Corp. * 39,300 1,294,444
-------------
CHEMICALS--MAJOR--0.4%
IMC Global, Inc. 105,900 1,555,406
-------------
CHEMICALS--SPECIALTY--6.0%
Cuno, Inc. * 80,900 2,194,413
Cytec Industries, Inc. * 111,900 3,426,937
Dexter Corp. 45,300 2,400,900
Ferro Corp. 123,800 2,205,187
Great Lakes Chemical Corp. 45,400 1,543,600
Olin Corp. 85,300 1,514,075
OM Group, Inc. 64,000 2,912,000
Scotts Co. * 68,500 2,877,000
</TABLE>
61
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND(CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE +
- -----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
CHEMICALS--SPECIALTY--CONTINUED
Spartech Corp. 63,700 $ 2,189,688
-------------
21,263,800
-------------
COMMERCIAL SERVICES--6.4%
ACNielson Corp. * 58,900 1,325,250
ADVO, Inc. * 82,700 2,067,500
Burns International Services Corp. * 193,600 2,032,800
Cheap Tickets, Inc. * 84,300 1,190,738
Harte-Hanks, Inc. 75,900 1,721,981
L90, Inc. * 72,600 1,379,400
Manpower, Inc. 68,600 2,435,300
Modis Professional Services, Inc. * 84,800 1,049,400
NetRatings, Inc. * 26,300 655,856
R.H. Donnelley Corp. 224,100 3,809,700
United Stationers, Inc. * 78,800 2,812,175
Viad Corp. 109,000 2,493,375
-------------
22,973,475
-------------
COMMUNICATIONS EQUIPMENT--3.5%
C-COR.net Corp. * 46,200 2,263,800
Davox Corp. * 72,600 1,942,050
Inter-Tel, Inc. 37,200 1,018,350
P-Com, Inc. * 59,600 1,102,600
PairGain Technologies, Inc. * 221,200 4,133,675
Tekelec * 58,300 2,164,387
-------------
12,624,862
-------------
COMPUTER HARDWARE--0.3%
National Instruments Corp. * 25,800 1,210,988
-------------
COMPUTER SERVICES--3.4%
Ciber, Inc. * 89,900 1,842,950
Complete Business Solutions, Inc. * 88,200 1,973,475
Fargo Electronics * 104,100 1,255,706
Filenet Corp. * 73,000 2,171,750
IntraNet Solutions, Inc. * 18,700 860,200
SunGard Data Systems, Inc. * 86,900 3,280,475
Wind River Systems, Inc. * 21,400 775,750
-------------
12,160,306
-------------
COMPUTER SOFTWARE--2.5%
3DO Co. * 76,100 737,219
Hyperion Solutions Corp. * 56,500 1,836,250
Informix Corp. * 169,200 2,865,825
J.D. Edwards & Co. * 62,900 2,048,181
Manugistics Group, Inc. * 28,600 1,458,600
-------------
8,946,075
-------------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND(CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE +
- -----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
CONSUMER PRODUCTS--0.8%
Fossil, Inc. * 115,700 $ 2,711,719
-------------
DATA PROCESSING SERVICES--0.2%
Information Resources, Inc. * 105,800 846,400
-------------
ELECTRICAL EQUIPMENT--2.6%
Hadco Corp. * 56,800 3,670,700
Sensormatic Electronics Corp. * 60,600 1,359,713
SpeedFam-IPEC, Inc. * 65,200 1,295,850
Varian Semiconductor Equipment Associates, Inc. * 46,800 2,977,650
-------------
9,303,913
-------------
ELECTRONIC COMPONENTS--4.4%
CommScope, Inc. * 48,900 2,231,062
CTS Corp. 48,700 2,775,900
DSP Group, Inc. * 42,800 2,824,800
Microchip Technology, Inc. * 28,950 1,903,463
SCI Systems, Inc. * 45,400 2,443,087
Vishay Intertechnology, Inc. * 62,150 3,457,094
-------------
15,635,406
-------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--4.1%
Actel Corp. * 72,700 2,594,481
Dallas Semiconductor Corp. 57,000 2,002,125
DuPont Photomasks, Inc. * 31,000 1,796,063
Integrated Device Technology, Inc. * 66,700 2,642,987
International Rectifier Corp. * 46,400 1,769,000
REMEC, Inc. * 74,700 3,772,350
-------------
14,577,006
-------------
ELECTRONIC MEASURING INSTRUMENTS--0.7%
Tektronix, Inc. 46,900 2,626,400
-------------
ENTERTAINMENT--0.6%
CEC Entertainment, Inc. * 84,800 2,300,200
-------------
ENVIRONMENTAL SERVICES--1.3%
American States Water Co. 64,500 1,918,875
Tetra Tech, Inc. * 109,650 2,604,188
-------------
4,523,063
-------------
FINANCIAL SERVICES--3.8%
Affiliated Managers Group, Inc. * 38,100 1,809,750
AmeriCredit Corp. * 140,800 2,296,800
DVI, Inc. * 49,300 702,525
eSPEED, Inc. Class A * 30,500 1,597,438
Federated Investors, Inc. Class B 122,200 3,337,587
</TABLE>
63
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND(CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE +
- -----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
FINANCIAL SERVICES--CONTINUED
Heller Financial, Inc. 87,400 $ 2,021,125
Investment Technology Group, Inc. * 52,000 1,833,000
-------------
13,598,225
-------------
FOOD--PACKAGED & MISCELLANEOUS--1.7%
Corn Products International, Inc. 83,500 2,009,219
International Multifoods Corp. 71,500 956,312
Michael Foods, Inc. 139,800 2,935,800
-------------
5,901,331
-------------
FOREST & PAPER PRODUCTS--0.2%
Chesapeake Corp.* 25,900 765,669
-------------
FREIGHT TRANSPORTATION--1.4%
Atlas Air, Inc. * 55,300 1,513,838
GATX Corp. 89,500 3,401,000
-------------
4,914,838
-------------
HEALTH CARE--BIOTECHNOLOGY--1.8%
Gilead Sciences, Inc. * 23,700 1,501,988
Medicis Pharmaceutical Corp. Class A * 54,400 2,176,000
Myriad Genetics, Inc. * 13,300 801,325
PathoGenesis Corp. * 80,800 1,838,200
-------------
6,317,513
-------------
HEALTH CARE--DRUGS--0.4%
Covance, Inc. * 142,900 1,536,175
-------------
HEALTH CARE--MEDICAL TECHNOLOGY--5.3%
Beckman Coulter, Inc. 40,000 2,567,500
Conmed Corp. * 165,475 4,147,217
EndoSonics Corp. * 293,400 1,852,088
IDEXX Laboratories, Inc. * 42,700 995,444
Respironics, Inc. * 177,900 2,557,312
Theragenics Corp. * 116,600 1,559,525
Varian Medical Systems, Inc. 112,800 5,146,500
-------------
18,825,586
-------------
HEALTH CARE--SERVICES--1.6%
Health Management Associates, Inc. Class A * 145,400 2,071,950
Per-Se Technologies, Inc. * 152,366 895,150
Renal Care Group, Inc. * 117,600 2,550,450
-------------
5,517,550
-------------
HOME BUILDERS--0.6%
D.R. Horton, Inc. 158,100 2,065,181
-------------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND(CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE +
- -----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
HOME PRODUCTS--0.5%
Furniture Brands International, Inc. * 99,700 $ 1,875,606
-------------
INSURANCE--3.6%
Annuity and Life Re (Holdings) Ltd. 65,700 1,708,200
Arthur J. Gallagher & Co. 74,100 2,408,250
CNA Surety Corp. 80,000 1,115,000
Protective Life Corp. 96,300 3,057,525
Radian Group, Inc. 38,700 1,843,087
Trigon Healthcare, Inc. * 78,100 2,792,075
-------------
12,924,137
-------------
LODGING & HOTEL--0.6%
MeriStar Hospitality Corp. 125,427 2,187,133
-------------
MACHINERY--0.6%
Milacron, Inc. 156,200 2,255,138
-------------
MANUFACTURING--4.0%
Crane Co. 53,100 1,251,169
Diebold, Inc. 72,000 1,980,000
Harman International Industries, Inc. 43,600 2,616,000
National Service Industries, Inc. 74,400 1,567,050
Pentair, Inc. 59,700 2,212,631
SPX Corp. * 27,300 3,110,494
UNOVA, Inc. * 110,200 1,487,700
-------------
14,225,044
-------------
METALS & MINING--1.7%
Harsco Corp. 87,200 2,523,350
Newmont Mining Corp. 79,700 1,788,269
Worthington Industries, Inc. 153,400 1,898,325
-------------
6,209,944
-------------
OFFICE EQUIPMENT--1.1%
HON Industries, Inc. 70,800 1,823,100
National Computer Systems, Inc. 43,500 2,207,625
-------------
4,030,725
-------------
OIL & GAS DRILLING EQUIPMENT--4.0%
Cooper Cameron Corp. * 38,900 2,601,438
Maverick Tube Corp. * 62,300 2,020,856
Patterson Energy, Inc. * 59,400 1,885,950
Santa Fe International Corp. 97,700 3,614,900
Tidewater, Inc. 65,700 2,090,081
Veritas DGC, Inc. * 70,400 1,980,000
-------------
14,193,225
-------------
</TABLE>
65
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND(CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE +
- -----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
OIL & GAS EXPLORATION--1.0%
Newfield Exploration Co. * 99,300 $ 3,500,325
-------------
OIL & GAS REFINING--0.5%
Valero Energy Corp. 54,800 1,678,250
-------------
PUBLISHING--1.2%
Houghton Mifflin Co. 63,900 2,711,756
John Wiley & Son, Inc. Class A 88,600 1,594,800
-------------
4,306,556
-------------
REAL ESTATE INVESTMENT TRUSTS--2.5%
Avalonbay Communities, Inc. 64,700 2,369,637
Liberty Property Trust 117,300 2,807,869
Pacific Gulf Properties, Inc. 82,200 1,613,175
Prentiss Properties Trust 89,000 1,985,813
-------------
8,776,494
-------------
RESTAURANTS--1.4%
Ruby Tuesday, Inc. 71,100 1,244,250
Wendy's International, Inc. 189,200 3,819,475
-------------
5,063,725
-------------
RETAIL--FOOD & DRUG--0.7%
Sonic Corp. * 94,500 2,575,125
-------------
RETAIL--GENERAL--0.9%
Family Dollar Stores, Inc. 117,300 2,441,306
Michaels Stores, Inc. * 21,100 859,825
-------------
3,301,131
-------------
RETAIL--SPECIALTY--1.7%
Charming Shoppes, Inc. * 225,300 1,281,394
Men's Wearhouse, Inc. * 104,900 3,107,662
Pier 1 Imports, Inc. 167,000 1,711,750
-------------
6,100,806
-------------
TELECOMMUNICATIONS--2.3%
DSL.net, Inc. * 47,400 1,045,762
Intermedia Communications, Inc. * 42,300 2,043,619
ITC DeltaCom, Inc. * 80,400 2,864,250
TALK.com, Inc. * 142,400 2,278,400
-------------
8,232,031
-------------
TEXTILE & APPAREL--1.6%
Liz Claiborne, Inc. 60,700 2,780,819
Russell Corp. 80,000 1,145,000
Springs Industries, Inc. 42,800 1,626,400
-------------
5,552,219
-------------
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES SMALL CAP VALUE FUND(CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE +
- -----------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
UTILITIES--3.6%
AGL Resources, Inc. 80,300 $ 1,475,513
Alliant Energy Corp. 85,800 2,611,537
New Jersey Resources Corp. 31,600 1,350,900
NSTAR 77,100 3,238,200
SIGCORP, Inc. 97,700 2,442,500
Washington Gas Light Co. 58,300 1,585,031
-------------
12,703,681
-------------
WASTE MANAGEMENT--0.3%
Republic Services, Inc. Class A * 112,700 1,232,655
-------------
TOTAL COMMON STOCKS
(Identified Cost $302,664,972) 351,363,644
-------------
TOTAL INVESTMENTS--98.4%
(IDENTIFIED COST $302,664,972) @ 351,363,644
Cash and Other Assets, Less Liabilities--1.6% 5,663,823
-------------
NET ASSETS--100% $ 357,027,467
-------------
-------------
</TABLE>
+ See Note 1.
* Non-income producing security.
@ At March 31, 2000, the net unrealized appreciation on investments based on
cost of $302,664,972 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 $65,524,340 and $16,825,668, respectively, resulting in net
unrealized appreciation of $48,698,672.
See accompanying notes to financial statements.
67
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-27.9% OF NET ASSETS
ARGENTINA--1.9%
Republic of Argentina, 6.000%, 3/31/23 USD 300,000 $ 210,000
-------------
AUSTRALIA--1.0%
Queensland Treasury, 8.000%, 9/14/07 AUD 100,000 64,958
South Australia Government Finance Authority,
Zero Coupon Bond, 12/21/15 220,000 45,385
-------------
110,343
-------------
PERU--0.3%
Republic of Peru, 3.750%, 3/07/17
(step to 4.000% on 3/07/01) # USD 50,000 30,625
-------------
PHILIPPINES--2.3%
FLI Capital Cayman, 6.250%, 2/01/02 + 150,000 163,500
MBIA, Inc., Zero Coupon Bond, 12/18/01 + 100,000 85,750
-------------
249,250
-------------
SOUTH KOREA--2.0%
Samsung Electronics Co. Ltd., Zero
Coupon Bond, 12/31/07 + 55,000 152,488
Ssangyong Oil Refining Co., Inc.,
3.000%, 12/31/04 + 100,000 69,750
-------------
222,238
-------------
THAILAND--3.2%
Bangkok Bank Public Co. Ltd., 4.589%, 3/03/04 + 400,000 216,000
Loxley Public Co. Ltd., 2.500%, 4/04/01 + ^ 450,000 130,500
-------------
346,500
-------------
UNITED KINGDOM--0.5%
Dolphin Telecom Plc, Zero Coupon Bond, 6/01/08
(step to 11.625% on 6/01/03) # EUR 135,000 57,652
-------------
UNITED STATES--16.7%
Baker Hughes, Inc., Zero Coupon Bond, 5/05/08 + USD 100,000 74,500
Boston Celtics Ltd., 6.000%, 6/30/38 90,000 47,925
Builders Transportation, Inc., 8.000%, 8/15/05 + ^ 95,000 119
Chesapeake Energy Corp., Series B, 7.875%, 3/15/04 100,000 89,000
CML Group, Inc., 5.500%, 1/15/03 + ^ 150,000 95
Columbia/HCA Healthcare Corp., 7.050%, 12/01/27 50,000 38,875
Columbia/HCA Healthcare Corp., 7.190%, 11/15/15 50,000 40,750
Dillon Read Structured Finance Corp., Series A,
6.660%, 8/15/10 150,364 133,946
Dura Pharmaceuticals, Inc., 3.500%, 7/15/02 + 100,000 80,625
Exide Corp., 2.900%, 12/15/05 144A + 125,000 71,875
Fox Family Worldwide, Inc., Zero Coupon Bond,
11/01/07 (step to 10.250% on 11/01/02) # 150,000 91,500
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -------------------------------------------------------------------------------------------
<S> <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 $ 138,000
Kent Electronics Corp., 4.500%, 9/01/04 + 50,000 44,375
Loews Corp., 3.125%, 9/15/07 + 150,000 134,062
Philip Morris Cos., Inc., 7.750%, 1/15/27 125,000 103,235
Pioneer Natural Resources Co., 7.200%, 1/15/28 175,000 129,500
R & B Falcon Corp., Series B, 7.375%, 4/15/18 75,000 57,375
Raytheon Co., 6.400%, 12/15/18 150,000 124,020
RCN Corp., Zero Coupon Bond, 10/15/07
(step to 11.125% on 10/15/02) # 175,000 112,000
Teligent, Inc., Zero Coupon Bond, 3/01/08
(step to 11.500% on 3/01/03) # 150,000 79,500
Thermedics, Inc., Zero Coupon Bond, 6/01/03 + 100,000 70,000
Thermo Electron Corp., 4.250%, 1/01/03 144A + 50,000 45,500
TRW, Inc., 6.650%, 1/15/28 50,000 40,280
Woolworth Corp., 8.500%, 1/15/22 150,000 94,125
-------------
1,841,182
-------------
TOTAL BONDS AND NOTES
(Identified Cost $3,341,990) 3,067,790
-------------
<CAPTION>
SHARES
- -------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-52.8% OF NET ASSETS
AUSTRALIA--1.7%
BMCMedia.com Ltd. * 59,000 186,642
-------------
BERMUDA--0.2%
FLAG Telecom Holdings Ltd. * 1,100 24,887
-------------
CANADA--2.2%
JDS Uniphase Corp. * 2,000 241,125
-------------
FINLAND--3.1%
Nokia Oyj * 900 190,238
Sonera Oyj 2,300 156,848
-------------
347,086
-------------
FRANCE--1.5%
STMicroelectronics NV 900 168,469
-------------
GERMANY--2.9%
ADVA AG Optical Networking * 250 157,814
Epcos AG * 1,200 157,814
-------------
315,628
-------------
</TABLE>
69
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
HONG KONG--2.2%
Pacific Century CyberWorks Ltd. * 61,000 $ 142,579
Sino-i.com Ltd. * 1,000,000 95,036
-------------
237,615
-------------
ISRAEL--1.3%
BATM Advanced Communications Ltd. 1,500 138,635
-------------
JAPAN--5.1%
Murata Manufacturing Co. Ltd. 1,000 242,964
Orix Corp. 960 138,826
Softbank Corp. * 200 178,206
-------------
559,996
-------------
MEXICO--1.7%
Grupo Televisa SA ADR * 2,700 183,600
-------------
NETHERLANDS--2.4%
KPNQwest NV * 2,270 120,716
United Pan-Europe Communications NV * 3,000 140,110
-------------
260,826
-------------
SOUTH KOREA--2.2%
Samsung Electronics 800 242,479
-------------
UNITED KINGDOM--9.2%
BG Group Plc 25,000 140,228
Colt Telecom Group Plc * 3,600 172,098
Scoot.com Plc * 31,000 115,963
Scottish Media Group Plc 10,000 205,163
Shire Pharmaceutical Group Plc * 9,000 152,307
Vodafone Group Plc 41,275 230,203
-------------
1,015,962
-------------
UNITED STATES--17.1%
Advanced Micro Devices, Inc. * 700 39,944
AFLAC, Inc. 950 43,284
Alcoa, Inc. 600 42,150
Analog Devices, Inc. * 600 48,337
Baker Hughes, Inc. 1,700 51,425
Bell Atlantic Corp. 650 39,731
BellSouth Corp. 600 28,200
Burlington Resources, Inc. 1,100 40,700
Citigroup, Inc. 750 44,484
Colgate-Palmolive Co. 700 39,462
CVS Corp. 1,000 37,563
Devon Energy Corp. 1,000 48,562
Dow Chemical Co. 300 34,200
Emerson Electric Co. 700 37,013
FleetBoston Financial Corp. 1,300 47,450
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE+
- -------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
UNITED STATES-CONTINUED
<S> <C> <C>
Fort James Corp. 1,500 $ 33,000
Gentex Corp. * 900 33,356
Guidant Corp. * 450 26,466
IMPSAT Fiber Networks, Inc. * 5,300 148,400
International Business Machines Corp. 470 55,460
International Paper Co. 1,000 42,750
Kerr-McGee Corp. 900 51,975
Limited, Inc. 900 37,912
Maxim Integrated Products, Inc. * 500 35,531
McDonald's Corp. 1,300 48,831
MCI WorldCom, Inc. * 500 22,656
Meritor Automotive, Inc. 1 16
Minnesota Mining & Manufacturing Co. 400 35,425
Nabors Industries, Inc. * 950 36,872
Newmont Mining Corp. 1,000 22,438
Nucor Corp. 500 25,000
OpenTV Corp. Class A * 1,050 124,294
Praxair, Inc. 900 37,463
R & B Falcon Corp. * 2,200 43,312
Smurfit-Stone Container Corp. * 2,400 40,650
Stryker Corp. 575 40,106
Target Corp. 600 44,850
Teradyne, Inc. * 500 41,125
Time Warner, Inc. 500 50,000
Tyco International Ltd. 700 34,913
Unocal Corp. 1,150 34,213
US West, Inc. 500 36,313
USX Marathon Group 1,200 31,275
Warner-Lambert Co. 500 48,750
-----------
1,885,857
-----------
TOTAL COMMON STOCKS
(Identified Cost $4,239,960) 5,808,807
-----------
PREFERRED STOCKS-0.7% OF NET ASSETS
UNITED STATES-0.7%
CarrAmerica Realty Corp., Series C, 8.550% 400 7,625
Duke-Weeks Realty Corp., Series F, 8.000% 500 9,625
Dynegy, Inc., 4.700% 100 3,150
Entergy Arkansas Capital I, 8.500% 250 5,219
Equity Residential Properties Trust, 7.250% 500 9,875
Hercules Trust I, 6.500% * 25 14,525
Highwoods Properties, Inc., Series B, 8.000% 750 12,984
ProLogis Trust, Series D, 7.920% 1,000 18,625
-----------
81,628
-----------
TOTAL PREFERRED STOCKS
(Identified Cost $82,631) 81,628
-----------
</TABLE>
71
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
LOOMIS SAYLES WORLDWIDE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE+
- -------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT-18.4% OF NET ASSETS
<S> <C> <C>
Repurchase Agreement with State Street Bank and
Trust Co., dated 3/31/00 at 4.750% to be repurchased
at $2,026,802 on 4/03/00 collateralized by $1,670,000
U.S. Treasury Bond, 8.000% due 11/15/21 with a value
of $2,067,852 USD 2,026,000 $ 2,026,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $2,026,000) 2,026,000
-----------
TOTAL INVESTMENTS--99.8%
(IDENTIFIED COST $9,690,581) @ 10,984,225
Cash and Other Assets, Less Liabilities--0.2% 23,828
-----------
NET ASSETS--100% $11,008,053
-----------
-----------
</TABLE>
+ See Note 1.
# Step Bond: Coupon is zero or below market rate for an initial period and
then increases at a specified date and rate.
+ Convertible Bond.
^ Security in default.
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.
* Non-income producing security.
@ At March 31, 2000, the net unrealized appreciation on investments based on
cost of $9,690,581 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 $1,982,007 and $688,363, respectively, resulting in net
unrealized appreciation of $1,293,644.
KEY TO ABBREVIATIONS:
ADR: American Depositary Receipt
AUD: Australian Dollar
EUR: Euro
USD: United States Dollar
Ten Largest Sector Holdings at March 31, 2000
as a Percentage of Net Assets
<TABLE>
<S> <C>
Telecommunications 12.2%
Communications Equipment 8.1%
Broadcasting 6.7%
Electronic Components 6.2%
Financial Services 4.1%
Oil & Gas 4.0%
Computer Software 3.6%
Health Care - Drugs 2.6%
Retail - General 2.5%
Electronic Components - Semiconductor 2.3%
</TABLE>
See accompanying notes to financial statements.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
73
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
AGGRESSIVE EMERGING GLOBAL
GROWTH CORE MARKETS TECHNOLOGY
FUND VALUE FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investments at value $70,487,959 $49,367,048 $4,203,541 $15,051,149
Repurchase agreement at value 5,907,000 0 361,000 557,000
Cash 583 344,312 671 0
Foreign currency at value 0 0 0 47,877
Receivable for:
Fund shares sold 420,519 405 0 39,975
Securities sold 4,729,370 1,062,399 58,758 962,338
Dividends and interest 780 97,153 4,071 1,306
Foreign tax reclaim 491 0 0 0
Due from the adviser (Note 3) 0 125 302 322
Other assets (Note 1I) 0 0 0 0
----------- ----------- ---------- -----------
81,546,702 50,871,442 4,628,343 16,659,967
----------- ----------- ---------- -----------
LIABILITIES
Payable for:
Securities purchased 7,196,604 256,806 101,348 1,022,397
Fund shares redeemed 187,134 6,383 0 246,020
Payable to custodian bank 0 0 0 134,647
Accrued expenses:
Management fees (Note 3) 1,462 686 155 415
Trustees' fees (Note 3A) 1,135 1,139 574 870
Administrative fees 586 3,713 1,091 1,080
Other (Note 3) 28,415 39,708 14,148 23,778
----------- ----------- ---------- -----------
7,415,336 308,435 117,316 1,429,207
----------- ----------- ---------- -----------
NET ASSETS $74,131,366 $50,563,007 $4,511,027 $15,230,760
----------- ----------- ---------- -----------
----------- ----------- ---------- -----------
Net Assets consist of:
Capital paid in $49,180,894 $48,800,468 $2,642,994 $14,182,534
Undistributed (or Distribution in excess of)
net investment income (150,387) 320,471 (16,524) (13,259)
Accumulated net realized gain (loss) 8,308,496 (1,034,796) 935,470 1,205,198
Unrealized appreciation (depreciation) on:
Investments 16,792,363 2,476,864 949,075 (143,730)
Foreign currency translations 0 0 12 17
----------- ----------- ---------- -----------
NET ASSETS $74,131,366 $50,563,007 $4,511,027 $15,230,760
----------- ----------- ---------- -----------
----------- ----------- ---------- -----------
INSTITUTIONAL CLASS:
Net assets $43,424,370 $50,203,538 $4,511,027 $ 7,918,961
Shares of beneficial interest outstanding, no
par value 968,463 3,435,920 212,271 561,120
Net asset value and redemption price per
Institutional share $ 44.84 $ 14.61 $ 21.25 $ 14.11
RETAIL CLASS:
Net assets $30,706,996 $ 359,469 -- $ 7,311,799
Shares of beneficial interest outstanding, no
par value 689,230 24,661 -- 521,783
Net asset value and redemption price per
Retail share $ 44.55 $ 14.58 -- $ 14.01
ADMIN CLASS:
Net assets -- -- -- --
Shares of beneficial interest outstanding, no
par value -- -- -- --
Net asset value and redemption price per
Admin Share -- -- -- --
Identified cost of investments $59,602,596 $46,890,184 $3,615,466 $ 15,751,879
----------- ----------- ---------- -----------
----------- ----------- ---------- -----------
</TABLE>
<TABLE>
<CAPTION>
MID-CAP SMALL CAP
GROWTH INTERNATIONAL VALUE GROWTH
FUND EQUITY FUND FUND FUND
-------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C>
Investments at value $42,784,038 $ 159,826,083 $4,886,610 $218,902,134
Repurchase agreement at value 0 0 0 6,626,000
Cash 4,284 0 51,929 72
Foreign currency at value 0 446,926 0 0
Receivable for:
Fund shares sold 3,759 840,834 0 783,092
Securities sold 0 2,414,789 220,502 6,385,155
Dividends and interest 10,594 101,778 7,856 874
Foreign tax reclaim 0 60,540 0 0
Due from the adviser (Note 3) 134 70 435 0
Other assets (Note 1I) 0 0 0 0
---------- ----------- --------- -----------
42,802,809 163,691,020 5,167,332 232,697,327
---------- ----------- --------- -----------
LIABILITIES
Payable for:
Securities purchased 0 485,488 99,521 3,925,520
Fund shares redeemed 0 290,417 0 5,127,148
Payable to custodian bank 0 3,899,589 0 0
Accrued expenses:
Management fees (Note 3) 577 3,242 100 4,579
Trustees' fees (Note 3A) 1,135 1,139 1,135 1,135
Administrative fees 1,116 3,267 353 2,408
Other (Note 3) 34,334 56,968 27,551 32,459
---------- ----------- --------- -----------
37,162 4,740,110 128,660 9,093,249
---------- ----------- --------- -----------
NET ASSETS $42,765,647 $ 158,950,910 $5,038,672 $223,604,078
---------- ----------- --------- -----------
---------- ----------- --------- -----------
Net Assets consist of:
Capital paid in $25,293,762 $ 92,920,085 $4,560,564 $126,854,788
Undistributed (or Distribution in excess of)
net investment income (65,466) (563,545) 10,690 (546,444)
Accumulated net realized gain (loss) 6,266,218 22,395,955 29,627 32,972,433
Unrealized appreciation (depreciation) on:
Investments 11,271,133 44,203,518 437,791 64,323,301
Foreign currency translations 0 (5,103) 0 0
---------- ----------- --------- -----------
NET ASSETS $42,765,647 $ 158,950,910 $5,038,672 $223,604,078
---------- ----------- --------- -----------
---------- ----------- --------- -----------
INSTITUTIONAL CLASS:
Net assets $41,775,923 $ 143,233,499 $4,762,437 $198,569,408
Shares of beneficial interest outstanding, no
par value 2,743,768 6,413,346 397,897 6,640,177
Net asset value and redemption price per
Institutional share $ 15.23 $ 22.33 $ 11.97 $ 29.90
RETAIL CLASS:
Net assets $ 989,724 $ 15,717,411 $ 276,235 $ 25,034,670
Shares of beneficial interest outstanding, no
par value 65,767 706,720 23,118 843,531
Net asset value and redemption price per
Retail share $ 15.05 $ 22.24 $ 11.95 $ 29.68
ADMIN CLASS:
Net assets -- -- -- --
Shares of beneficial interest outstanding, no
par value -- -- -- --
Net asset value and redemption price per
Admin Share -- -- -- --
Identified cost of investments $31,512,905 $ 115,622,565 $4,448,819 $161,204,833
---------- ----------- --------- -----------
---------- ----------- --------- -----------
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP
VALUE WORLDWIDE
FUND FUND
-------------------------------
ASSETS
<S> <C> <C>
Investments at value $351,363,644 $ 8,958,225
Repurchase agreement at value 0 2,026,000
Cash 109,903 0
Foreign currency at value 0 47,891
Receivable for:
Fund shares sold 306,930 64,325
Securities sold 7,538,150 353,371
Dividends and interest 309,646 38,158
Foreign tax reclaim 0 1,209
Due from the adviser (Note 3) 0 416
Other assets (Note 1I) 0 987
----------- ----------
359,628,273 11,490,582
----------- ----------
LIABILITIES
Payable for:
Securities purchased 1,306,404 234,742
Fund shares redeemed 1,152,200 0
Payable to custodian bank 0 205,341
Accrued expenses:
Management fees (Note 3) 7,158 224
Trustees' fees (Note 3A) 1,135 1,139
Administrative fees 17,187 345
Other (Note 3) 116,722 40,738
----------- ----------
2,600,806 482,529
----------- ----------
NET ASSETS $357,027,467 $ 11,008,053
----------- ----------
----------- ----------
Net Assets consist of:
Capital paid in $317,761,467 $ 7,742,100
Undistributed (or Distribution in excess of)
net investment income 1,748,372 61,089
Accumulated net realized gain (loss) (11,181,044) 1,911,315
Unrealized appreciation (depreciation) on:
Investments 48,698,672 1,293,644
Foreign currency translations 0 (95)
----------- ----------
NET ASSETS $357,027,467 $ 11,008,053
----------- ----------
----------- ----------
INSTITUTIONAL CLASS:
Net assets $261,008,688 $ 10,617,797
Shares of beneficial interest outstanding, no
par value 13,476,675 708,116
Net asset value and redemption price per
Institutional share $ 19.37$ 14.99
RETAIL CLASS:
Net assets $ 88,180,649 $ 390,256
Shares of beneficial interest outstanding, no
par value 4,556,068 26,081
Net asset value and redemption price per
Retail share $ 19.35$ 14.96
ADMIN CLASS:
Net assets $ 7,838,130 --
Shares of beneficial interest outstanding, no
par value 405,271 --
Net asset value and redemption price per
Admin Share $ 19.34 --
Identified cost of investments $302,664,972 $ 9,690,581
----------- ----------
----------- ----------
</TABLE>
See accompanying notes to financial statements.
75
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
AGGRESSIVE CORE EMERGING
GROWTH VALUE MARKETS
FUND FUND FUND#
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C> <C> <C>
Dividends* $ 7,601 $ 558,420 $ 7,181
Interest 48,050 20,091 5,360
----------- ------------ -----------
55,651 578,511 12,541
----------- ------------ -----------
Expenses
Management fees (Note 3) 144,771 155,411 16,147
12b-1 fees (Retail Class) 13,111 614 0
12b-1 fees (Admin Class) 0 0 0
Trustees' fees and expenses (Note 3A) 2,021 2,021 1,660
Administrative fees 8,281 16,367 1,467
Custodian and accounting fees 29,393 29,664 22,363
Transfer Agent fees (Institutional Class) (Note 3) 13,632 20,224 10,652
Transfer Agent fees (Retail Class) (Note 3) 9,569 9,564 0
Transfer Agent fees (Admin Class) 0 0 0
Audit and tax services fees 9,177 10,526 10,465
Registration fees 8,715 11,318 6,095
Amortization of organization expenses (Note1I):
Institutional Class 0 0 0
Other expenses 5,968 10,845 9,724
----------- ------------ -----------
Total expenses 244,638 266,554 78,573
Less expenses waived and reimbursed by
the investment adviser (Note 3) (38,600) (11,265) (49,508)
----------- ------------ -----------
Net expenses 206,038 255,289 29,065
----------- ------------ -----------
Net investment income (loss) (150,387) 323,222 (16,524)
----------- ------------ -----------
NET REALIZED GAIN (LOSS) ON:
Investments** 8,404,130 (1,027,957) 935,470
Foreign currency transactions 0 0 0
----------- ------------ -----------
Total net realized gain (loss) 8,404,130 (1,027,957) 935,470
----------- ------------ -----------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments*** 13,917,447 (50,732) 949,075
Foreign currency translations 0 0 12
----------- ------------ -----------
Total net change in unrealized appreciation
(depreciation) 13,917,447 (50,732) 949,087
----------- ------------ -----------
Total net realized gain (loss) and change
in unrealized appreciation (depreciation) 22,321,577 (1,078,689) 1,884,557
----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $22,171,190 $ (755,467) $ 1,868,033
----------- ------------ -----------
----------- ------------ -----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GLOBAL
TECHNOLOGY GROWTH INTERNATIONAL
FUND## FUND EQUITY FUND
----------------------------------------------------------
INVESTMENT INCOME
<S> <C> <C> <C>
Dividends* $ 1,238 $ 71,775 $ 141,047
Interest 10,668 22,164 104,882
----------- ------------ -----------
11,906 93,939 245,929
----------- ------------ -----------
Expenses
Management fees (Note 3) 15,563 93,165 470,727
12b-1 fees (Retail Class) 1,821 1,024 5,217
12b-1 fees (Admin Class) 0 0 0
Trustees' fees and expenses (Note 3A) 874 2,021 2,021
Administrative fees 1,214 9,076 25,166
Custodian and accounting fees 9,711 28,313 132,638
Transfer Agent fees (Institutional Class) (Note 3 2,428 15,564 16,718
Transfer Agent fees (Retail Class) (Note 3) 1,214 9,410 9,497
Transfer Agent fees (Admin Class) 0 0 0
Audit and tax services fees 6,070 11,304 12,510
Registration fees 4,613 11,286 10,167
Amortization of organization expenses (Note1I):
Institutional Class 0 0 0
Other expenses 5,099 11,484 11,100
----------- ------------ -----------
Total expenses 48,607 192,647 695,761
Less expenses waived and reimbursed by
the investment adviser (Note 3) (23,442) (33,242) (62,996)
----------- ------------ -----------
Net expenses 25,165 159,405 632,765
----------- ------------ -----------
Net investment income (loss) (13,259) (65,466) (386,836)
----------- ------------ -----------
NET REALIZED GAIN (LOSS) ON:
Investments** 1,208,387 6,267,128 24,595,925
Foreign currency transactions (3,189) 0 (94,485)
----------- ------------ -----------
Total net realized gain (loss) 1,205,198 6,267,128 24,501,440
----------- ------------ -----------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments*** (143,730) 7,975,877 33,634,763
Foreign currency translations 17 0 (13,898)
----------- ------------ -----------
Total net change in unrealized appreciation
(depreciation) (143,713) 7,975,877 33,620,865
----------- ------------ -----------
Total net realized gain (loss) and change
in unrealized appreciation (depreciation) 1,061,485 14,243,005 58,122,305
----------- ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 1,048,226 $ 14,177,539 $57,735,469
----------- ------------ -----------
----------- ------------ -----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MID-CAP SMALL CAP SMALL CAP
VALUE GROWTH VALUE WORLDWIDE
FUND FUND FUND FUND
----------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C> <C> <C> <C>
Dividends* $ 32,983 $ 9,908 $ 2,690,488 $ 10,651
Interest 4,621 184,012 543,548 183,623
----------- ------------ ----------- ------------
37,604 193,920 3,234,06 194,274
----------- ------------ ----------- ------------
Expenses
Management fees (Note 3) 19,838 597,967 1,422,017 32,730
12b-1 fees (Retail Class) 332 19,463 106,436 254
12b-1 fees (Admin Class) 0 0 7,806 0
Trustees' fees and expenses (Note 3A) 2,021 2,021 2,021 2,021
Administrative fees 3,556 28,519 87,365 3,861
Custodian and accounting fees 35,101 40,390 68,998 40,609
Transfer Agent fees (Institutional Class) (Note 3 13,229 15,740 104,750 12,185
Transfer Agent fees (Retail Class) (Note 3) 9,427 9,695 13,720 9,354
Transfer Agent fees (Admin Class) 0 0 10,240 0
Audit and tax services fees 9,177 9,177 17,733 8,515
Registration fees 8,704 9,422 11,604 9,676
Amortization of organization expenses (Note1I):
Institutional Class 0 0 0 452
Other expenses 5,979 7,970 31,209 6,106
----------- ------------ ----------- ------------
Total expenses 107,364 740,364 1,883,899 125,763
Less expenses waived and reimbursed by
the investment adviser (Note 3) (80,582) 0 0 (81,869)
----------- ------------ ----------- ------------
Net expenses 26,782 740,364 1,883,899 43,894
----------- ------------ ----------- ------------
Net investment income (loss) 10,822 (546,444) 1,350,137 150,380
----------- ------------ ----------- ------------
NET REALIZED GAIN (LOSS) ON:
Investments** 107,801 35,091,147 (11,060,126) 2,000,711
Foreign currency transactions 0 0 0 (2,278)
----------- ------------ ----------- ------------
Total net realized gain (loss) 107,801 35,091,14 (11,060,126) 1,998,433
----------- ------------ ----------- ------------
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments*** 536,783 41,609,051 59,683,347 1,558,990
Foreign currency translations 0 0 0 (126)
----------- ------------ ----------- ------------
Total net change in unrealized appreciation
(depreciation) 536,783 41,609,051 59,683,347 1,558,864
----------- ------------ ----------- ------------
Total net realized gain (loss) and change
in unrealized appreciation (depreciation) 644,584 76,700,198 48,623,221 3,557,297
----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 655,406 $ 76,153,754 $49,973,358 $ 3,707,677
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
</TABLE>
* NET OF FOREIGN WITHHOLDING TAXES OF $566, $212, $46, $27,240, $49 AND
$1,063 FOR THE EMERGING MARKETS, GLOBAL TECHNOLOGY, GROWTH, INTERNATIONAL
EQUITY, MID-CAP VALUE AND WORLDWIDE FUNDS, RESPECTIVELY.
** NET OF CAPITAL GAIN WITHHOLDING TAXES OF $10,330 AND $1,139 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 FEBRUARY 1, 2000.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
77
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
AGGRESSIVE GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
- -------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income (loss) $ (150,387) $ (38,748)
Net realized gain (loss) 8,404,130 888,317
Change in unrealized appreciation
(depreciation) 13,917,447 2,978,084
------------ -------------
Increase (decrease) in net assets from
operations 22,171,190 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)
------------ -------------
(941,207) (81,622)
------------ -------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Increase (decrease) in net assets derived
from capital share transactions 38,417,675 8,579,807
------------ -------------
Total increase (decrease) in net assets 59,647,658 12,325,838
NET ASSETS
Beginning of the period 14,483,708 2,157,870
------------ -------------
End of the period $ 74,131,366 $ 14,483,708
------------ -------------
------------ -------------
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ (150,387) $ 0
------------ -------------
------------ -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
CORE VALUE FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
- -------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income (loss) $ 323,222 $ 908,118
Net realized gain (loss) (1,027,957) 7,604,974
Change in unrealized appreciation
(depreciation) (50,732) (989,371)
------------ -------------
Increase (decrease) in net assets from
operations (755,467) 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 5)
Increase (decrease) in net assets derived
from capital share transactions (8,050,096) 153,128
------------ -------------
Total increase (decrease) in net assets (16,767,515) (612,227)
NET ASSETS
Beginning of the period 67,330,522 67,942,749
------------ -------------
End of the period $ 50,563,007 $ 67,330,522
------------ -------------
------------ -------------
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 320,471 $ 632,576
------------ -------------
------------ -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
79
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENT OF CHANGES IN NET ASSETS
EMERGING MARKETS FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
MARCH 31,
2000
(UNAUDITED)*
- --------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C>
Net investment income (loss) $ (16,524)
Net realized gain (loss) 935,470
Change in unrealized appreciation
(depreciation) 949,087
----------
Increase (decrease) in net assets from
operations 1,868,033
----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net investment income 0
Net realized gain on investments 0
----------
0
----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Increase (decrease) in net assets derived
from capital share transactions 2,642,994
----------
Total increase (decrease) in net assets 4,511,027
NET ASSETS
Beginning of the period 0
----------
End of the period $4,511,027
----------
----------
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ (16,524)
----------
----------
</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
MARCH 31,
2000
(UNAUDITED)*
- -------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C>
Net investment income (loss) $ (13,259)
Net realized gain (loss) 1,205,198
Change in unrealized appreciation
(depreciation) (143,713)
-------------
Increase (decrease) in net assets from
operations 1,048,226
-------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net investment income 0
Net realized gain on investments 0
RETAIL CLASS
Net investment income 0
Net realized gain on investments 0
-------------
0
-------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Increase (decrease) in net assets derived
from capital share transactions 14,182,534
-------------
Total increase (decrease) in net assets 15,230,760
NET ASSETS
Beginning of the period 0
-------------
End of the period $ 15,230,760
-------------
-------------
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ (13,259)
-------------
-------------
</TABLE>
* COMMENCEMENT OF OPERATIONS, FEBRUARY 1, 2000.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
81
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
- -------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (65,466) $ (113,365)
Net realized gain (loss) 6,267,128 4,039,815
Change in unrealized appreciation
(depreciation) 7,975,877 3,171,041
--------- ---------
Increase (decrease) in net assets from
operations 14,177,539 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)
----------- -----------
(2,666,774) (6,539,931)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Increase (decrease) in net assets derived
from capital share transactions 2,371,156 3,146,346
----------- -----------
Total increase (decrease) in net assets 13,881,921 3,703,906
NET ASSETS
Beginning of the period 28,883,726 25,179,820
----------- -----------
End of the period $42,765,647 $28,883,726
----------- -----------
----------- -----------
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ (65,466) $ 0
------------ ------------
------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
- -------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (386,836) $ 381,954
Net realized gain (loss) 24,501,440 3,798,847
Change in unrealized appreciation
(depreciation) 33,620,865 16,040,163
--------------- -------------
Increase (decrease) in net assets from
operations 57,735,469 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 (3,906) (1,363)
Net realized gain on investments (59,775) (2,608)
--------------- -------------
(6,513,125) (2,062,725)
--------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Increase (decrease) in net assets derived
from capital share transactions 28,052,048 (7,095,776)
--------------- -------------
Total increase (decrease) in net assets 79,274,392 11,062,463
NET ASSETS
Beginning of the period 79,676,518 68,614,055
--------------- -------------
End of the period $ 158,950,910 $ 79,676,518
--------------- -------------
--------------- -------------
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ (563,545) $ 376,798
--------------- -------------
--------------- -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
83
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
MID-CAP VALUE FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
- -------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 10,822 $ 12,375
Net realized gain (loss) 107,801 146,067
Change in unrealized appreciation
(depreciation) 536,783 282,048
------------ -------------
Increase (decrease) in net assets from
operations 655,406 440,490
------------ -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net investment income (12,211) (8,319)
Net realized gain on investments (188,752) (113,579)
RETAIL CLASS
Net realized gain on investments (9,687) (6,713)
------------ -------------
(210,650) (128,611)
------------ -------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Increase (decrease) in net assets derived
from capital share transactions (698,475) 1,569,205
------------ -------------
Total increase (decrease) in net assets (253,719) 1,881,084
NET ASSETS
Beginning of the period 5,292,391 3,411,307
------------ -------------
End of the period $ 5,038,672 $ 5,292,391
------------ -------------
------------ -------------
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 10,690 $ 12,079
------------ -------------
------------ -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
SMALL CAP GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
- -------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (546,444) $ (412,157)
Net realized gain (loss) 35,091,147 103,100
Change in unrealized appreciation
(depreciation) 41,609,051 23,516,010
------------ -------------
Increase (decrease) in net assets from
operations 76,153,754 23,206,953
------------ -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
INSTITUTIONAL CLASS
Net investment income 0 0
Net realized gain on investments 0 0
RETAIL CLASS
Net investment income 0 0
Net realized gain on investments 0 0
------------ -------------
0 0
------------ -------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 5)
Increase (decrease) in net assets derived
from capital share transactions 60,285,589 45,726,592
------------ -------------
Total increase (decrease) in net assets 136,439,343 68,933,545
NET ASSETS
Beginning of the period 87,164,735 18,231,190
------------ -------------
End of the period $223,604,078 $87,164,735
------------ -------------
------------ -------------
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ (546,444) $ 0
------------ -------------
------------ -------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
85
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
SMALL CAP VALUE FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
- -------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 1,350,137 $ 3,181,087
Net realized gain (loss) (11,060,126) 19,210,781
Change in unrealized appreciation
(depreciation) 59,683,347 22,519,267
------------ ------------
Increase (decrease) in net assets from
operations 49,973,358 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 5)
Increase (decrease) in net assets derived
from capital share transactions (65,792,969) (8,787,045)
------------ ------------
Total increase (decrease) in net assets (24,634,468) 30,439,290
NET ASSETS
Beginning of the period 381,661,935 351,222,645
------------ ------------
End of the period $357,027,467 $381,661,935
------------ ------------
------------ ------------
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 1,748,372 $ 3,255,170
------------ ------------
------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
WORLDWIDE FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
- -------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 150,380 $ 303,174
Net realized gain (loss) 1,998,433 256,417
Change in unrealized appreciation
(depreciation) 1,558,864 830,774
----------- ----------
Increase (decrease) in net assets from
operations 3,707,677 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 5)
Increase (decrease) in net assets derived
from capital share transactions 1,522,027 471,820
----------- ----------
Total increase (decrease) in net assets 4,636,104 1,391,619
NET ASSETS
Beginning of the period 6,371,949 4,980,330
----------- ----------
End of the period $11,008,053 $6,371,949
----------- ----------
----------- ----------
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS)
End of the period $ 61,089 $ 215,169
----------- ----------
----------- ----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
87
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
AGGRESSIVE GROWTH FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
-----------------------------
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30,
--------------- -------------
(UNAUDITED) 1999
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 20.08 $ 10.51
------- -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.13)(d) (0.09)(d)
Net realized and unrealized gain
(loss) on investments 26.11 10.05
------- -------
Total from investment operations 25.98 9.96
------- -------
LESS DISTRIBUTIONS--
Distributions in excess of net
investment income 0.00 0.00
Distributions from net realized
capital gains (1.22) (0.39)
------- -------
Total distributions (1.22) (0.39)
------- -------
Net asset value, end of period $ 44.84 $ 20.08
------- -------
------- -------
Total return (%)(a) 132.9 97.9
Net assets, end of period (000) $43,424 $13,308
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00
Gross expenses (%)(c) 1.20 2.96
Net investment income (loss) (%)(c) (0.72) (0.56)
Portfolio turnover (%) 120 199
</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 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 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 SIX MONTHS NINE MONTHS
ENDED PERIOD ENDED ENDED YEAR ENDED ENDED PERIOD ENDED
SEPTEMBER 30, DECEMBER 31, MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
------------- ------------ -------------- ------------- -------------- ------------
1998 1997* (UNAUDITED) 1999 1998 1997*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.49 $10.00 $ 19.99 $10.49 $11.49 $10.00
------ ------ -------- ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.03) (0.03) (0.20)(d) (0.14)(d) (0.05) (0.06)
Net realized and unrealized gain
(loss) on investments (0.95) 2.26 25.98 10.03 (0.95) 2.27
------ ------ -------- ------ ------ ------
Total from investment operations (0.98) 2.23 25.78 9.89 (1.00) 2.21
------ ------ -------- ------ ------ ------
LESS DISTRIBUTIONS--
Distributions in excess of net
investment income 0.00 (0.12) 0.00 0.00 0.00 (0.10)
Distributions from net realized
capital gains 0.00 (0.62) (1.22) (0.39) 0.00 (0.62)
------ ------ -------- ------ ------ ------
Total distributions 0.00 (0.74) (1.22) (0.39) 0.00 (0.72)
------ ------ -------- ------ ------ ------
Net asset value, end of period $10.51 $11.49 $ 44.55 $19.99 $10.49 $11.49
------ ------ -------- ------ ------ ------
------ ------ -------- ------ ------ ------
Total return (%)(a) (8.5) 22.7 132.5 97.5 (8.7) 22.4
Net assets, end of period (000) $2,073 $1,848 $ 30,707 $1,175 $ 85 $ 74
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00 1.25 1.25 1.25 1.25
Gross expenses (%)(c) 7.13 9.35 1.44 9.05 27.97 36.58
Net investment income (loss) (%)(c) (0.35) (0.38) (0.94) (0.80) (0.60) (0.67)
Portfolio turnover (%) 82 174 120 199 82 174
</TABLE>
89
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
CORE VALUE FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
--------------------------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30,
-------------- ------------- -------------
(UNAUDITED) 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) 0.09 0.22 0.18
Net realized and unrealized
gain (loss) on investments (0.02) 1.53 (0.97)
------- ------- -------
Total from investment operations 0.07 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 $ 14.61 $ 16.54 $ 16.85
------- ------- -------
------- ------- -------
Total return (%)(a) 0.1 10.5 (4.5)
Net assets, end of period (000) $50,204 $66,726 $66,928
Ratios to average net assets:
Net expenses (%)(b)(c) 0.82 0.78 0.79
Gross expenses (%)(c) 0.83 0.78 0.79
Net investment income
(loss) (%)(c) 1.04 1.20 1.36
Portfolio turnover (%) 38 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 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 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
--------------------------------- -----------------------------------------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED PERIOD ENDED
YEAR ENDED DECEMBER 31, MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
--------------------------------- -------------- ------------- ------------- ------------
1997 1996 1995 (UNAUDITED) 1999 1998 1997*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.60 $ 14.57 $ 11.80 $16.48 $16.79 $17.62 $15.60
------- ------- ------- ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.18 0.22 0.23 0.09 0.18 0.15(d) 0.15(d)
Net realized and unrealized
gain (loss) on investments 4.32 2.83 3.93 (0.04) 1.52 (0.98) 4.30
------- ------- ------- ------ ------ ------ ------
Total from investment operations 4.50 3.05 4.16 0.05 1.70 (0.83) 4.45
------- ------- ------- ------ ------ ------ ------
LESS DISTRIBUTIONS--
Dividends from net investment
income (0.19) (0.22) (0.23) (0.10) (0.19) 0.00 (0.16)
Distributions from net realized
capital gains (2.27) (1.80) (1.16) (1.85) (1.82) 0.00 (2.27)
------- ------- ------- ------ ------ ------ ------
Total distributions (2.46) (2.02) (1.39) (1.95) (2.01) 0.00 (2.43)
------- ------- ------- ------ ------ ------ ------
Net asset value, end of period $ 17.64 $ 15.60 $ 14.57 $14.58 $16.48 $16.79 $17.62
------- ------- ------- ------ ------ ------ ------
------- ------- ------- ------ ------ ------ ------
Total return (%)(a) 29.2 21.2 35.2 0.0 10.2 (4.7) 28.9
Net assets, end of period (000) $63,303 $43,715 $36,465 $ 359 $ 605 $1,015 $1,324
Ratios to average net assets:
Net expenses (%)(b)(c) 0.84 1.13 1.20 1.10 1.10 1.10 1.10
Gross expenses (%)(c) 0.84 1.13 1.20 4.91 3.35 2.20 6.17
Net investment income
(loss) (%)(c) 1.12 1.44 1.61 0.72 0.88 1.07 0.84
Portfolio turnover (%) 64 58 60 38 59 49 64
</TABLE>
91
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
EMERGING MARKETS FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
-------------------
PERIOD
ENDED
MARCH 31, 2000*
---------------
(UNAUDITED)
- --------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $10.00
------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.08)
Net realized and unrealized gain (loss) on investments 11.33
------
Total from investment operations 11.25
------
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 $21.25
======
Total return (%)(a) 112.5
Net assets, end of period (000) $4,511
Ratios to average net assets:
Net expenses (%)(b)(c) 2.25
Gross expenses (%)(c) 6.08
Net investment income (loss) (%)(c) (1.28)
Portfolio turnover (%) 85
</TABLE>
* FROM COMMENCEMENT OF FUND OPERATIONS ON NOVEMBER 9, 1999.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER 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 EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
GLOBAL TECHNOLOGY FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS RETAIL CLASS
------------------- ---------------
PERIOD PERIOD
ENDED ENDED
MARCH 31, 2000* MARCH 31, 2000*
--------------- ---------------
(UNAUDITED) (UNAUDITED)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $10.00 $10.00
------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.01) (0.01)
Net realized and unrealized gain (loss)
on investments 4.12 4.02
------ ------
Total from investment operations 4.11 4.01
------ ------
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 $14.11 $14.01
====== ======
Total return (%)(a) 41.1 40.1
Net assets, end of period (000) $7,919 $7,312
Ratios to average net assets:
Net expenses (%)(b)(c) 1.50 1.75
Gross expenses (%)(c) 3.29 2.94
Net investment income (loss) (%)(c) (0.67) (1.06)
Portfolio turnover (%) 44 44
</TABLE>
* FROM COMMENCEMENT OF FUND OPERATIONS ON FEBRUARY 1, 2000.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER 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 EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
93
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
GROWTH FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
--------------------------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30,
-------------- ------------- -------------
(UNAUDITED) 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) (0.02) (0.04) (0.03)
Net realized and unrealized gain (loss)
on investments 5.10 3.01 (0.95)
------- ------- -------
Total from investment operations 5.08 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 $ 15.23 $ 11.17 $ 11.65
======= ======= =======
Total return (%)(a) 47.9 30.9 (7.8)
Net assets, end of period (000) $41,776 $28,235 $24,663
Ratios to average net assets:
Net expenses (%)(b)(c) 0.85 0.85 0.85
Gross expenses (%)(c) 0.98 1.18 1.02
Net investment income (loss) (%)(c) (0.35) (0.40) (0.32)
Portfolio turnover (%) 103 164 118
</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 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 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 (%) 116 99 48
</TABLE>
95
<PAGE>
<TABLE>
<CAPTION>
RETAIL CLASS
----------------------------------------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED PERIOD ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
-------------- ------------- ------------- ------------
(UNAUDITED) 1999 1998 1997*
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $11.06 $11.59 $12.59 $13.44
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.03) (0.06) (0.03) (0.07)
Net realized and unrealized gain (loss)
on investments 5.04 2.98 (0.97) 3.16
------ ------ ------ ------
Total from investment operations 5.01 2.92 (1.00) 3.09
------ ------ ------ ------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.00) (0.00) 0.00 (0.00)
Distributions from net realized capital gains (1.02) (3.45) 0.00 (3.94)
------ ------ ------ ------
Total distributions (1.02) (3.45) 0.00 (3.94)
------ ------ ------ ------
Net asset value, end of period $15.05 $11.06 $11.59 $12.59
====== ====== ====== ======
Total return (%)(a) 47.7 30.6 (7.9) 24.2
Net assets, end of period (000) $ 990 $ 649 $ 516 $ 194
Ratios to average net assets:
Net expenses (%)(b)(c) 1.10 1.10 1.10 1.10
Gross expenses (%)(c) 3.45 4.43 4.74 12.96
Net investment income (loss) (%)(c) (0.60) (0.65) (0.58) (0.42)
Portfolio turnover (%) 103 164 118 116
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
--------------------------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30,
-------------- ------------- -------------
(UNAUDITED) 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 9.69 3.31 (0.70)
------- ------- -------
Total from investment operations 9.63 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 $ 22.33 $ 13.79 $ 10.74
======= ======= =======
Total return (%)(a) 72.4 32.0 (5.0)
Net assets, end of period (000) $143,233 $79,415 $68,464
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00 1.00
Gross expenses (%)(c) 1.08 1.22 1.18
Net investment income (loss) (%)(c) (0.62) 0.53 1.49
Portfolio turnover (%) 101 207 96
</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 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 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 (%) 119 151 133
</TABLE>
97
<PAGE>
<TABLE>
<CAPTION>
RETAIL CLASS
----------------------------------------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED PERIOD ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
-------------- ------------- ------------- ------------
(UNAUDITED) 1999 1998 1997*
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $13.73 $10.70 $11.28 $13.16
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.07)(d) 0.05 0.10 0.10(d)
Net realized and unrealized gain (loss)
on investments 9.62 3.28 (0.68) (0.26)
------ ------ ------ ------
Total from investment operations 9.55 3.33 (0.58) (0.16)
------ ------ ------ ------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.04) (0.10) 0.00 (0.17)
Distributions from net realized capital gains (1.00) (0.20) 0.00 (1.55)
------ ------ ------ ------
Total distributions (1.04) (0.30) 0.00 (1.72)
------ ------ ------ ------
Net asset value, end of period $22.24 $13.73 $10.70 $11.28
====== ====== ====== ======
Total return (%)(a) 72.1 31.6 (5.1) (1.3)
Net assets, end of period (000) $15,717 $ 261 $ 150 $ 233
Ratios to average net assets:
Net expenses (%)(b)(c) 1.25 1.25 1.25 1.25
Gross expenses (%)(c) 1.81 12.33 10.26 16.24
Net investment income (loss) (%)(c) (0.59) 0.29 1.16 0.73
Portfolio turnover (%) 101 207 96 119
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
MID-CAP VALUE FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS INSTITUTIONAL CLASS
----------------------------- ---------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED PERIOD ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
-------------- ------------- ------------- ------------
(UNAUDITED) 1999 1998 1997*
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.99 $10.09 $11.53 $10.00
------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.03 0.03 0.02 0.07
Net realized and unrealized gain (loss) on investments 1.41 1.26 (1.46) 2.54
------ ------ ------ ------
Total from investment operations 1.44 1.29 (1.44) 2.61
------ ------ ------ ------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.03) (0.03) 0.00 (0.14)
Distributions from net realized capital gains (0.43) (0.36) 0.00 (0.94)
------ ------ ------ ------
Total distributions (0.46) (0.39) 0.00 (1.08)
------ ------ ------ ------
Net asset value, end of period $11.97 $10.99 $10.09 $11.53
====== ====== ====== ======
Total return (%)(a) 13.4 12.9 (12.5) 26.3
Net assets, end of period (000) $4,762 $5,062 $3,291 $3,736
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00 1.00 1.00
Gross expenses (%)(c) 3.72 4.01 4.33 6.65
Net investment income (loss) (%)(c) 0.42 0.28 0.22 0.74
Portfolio turnover (%) 139 232 225 130
</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 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 EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
<PAGE>
<TABLE>
<CAPTION>
RETAIL CLASS
----------------------------------------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED PERIOD ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
-------------- ------------- ------------- ------------
(UNAUDITED) 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) 0.01 0.00 (0.01) 0.03
Net realized and unrealized gain (loss) on investments 1.41 1.25 (1.45) 2.55
------ ------ ------ ------
Total from investment operations 1.42 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 $11.95 $10.96 $10.07 $11.53
====== ====== ====== ======
Total return (%)(a) 13.2 12.5 (12.7) 26.0
Net assets, end of period (000) $ 276 $ 231 $ 121 $ 168
Ratios to average net assets:
Net expenses (%)(b)(c) 1.25 1.25 1.25 1.25
Gross expenses (%)(c) 10.54 13.62 13.31 27.99
Net investment income (loss) (%)(c) 0.17 (0.02) (0.03) 0.42
Portfolio turnover (%) 139 232 225 130
</TABLE>
99
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
SMALL CAP GROWTH FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS INSTITUTIONAL CLASS
----------------------------- ---------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED PERIOD ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
-------------- ------------- ------------- ------------
(UNAUDITED) 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) (0.08)(d) (0.08) (0.02) (0.07)(d)
Net realized and unrealized gain (loss) on investments 13.24 6.99 (1.47) 1.99
-------- ------- ------- ------
Total from investment operations 13.16 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 $ 29.90 $ 16.74 $ 9.83 $11.32
======== ======= ======= ======
Total return (%)(a) 78.6 70.3 (13.2) 19.4
Net assets, end of period (000) $198,569 $81,132 $17,174 $3,893
Ratios to average net assets:
Net expenses (%)(b)(c) 0.89 1.00 1.00 1.00
Gross expenses (%)(c) 0.89 1.11 2.15 5.81
Net investment income (loss) (%)(c) (0.65) (0.80) (0.53) (0.65)
Portfolio turnover (%) 94 163 116 211
</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 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 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 WEIGHTED
AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD.
<PAGE>
<TABLE>
<CAPTION>
RETAIL CLASS
----------------------------------------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED PERIOD ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
-------------- ------------- ------------- ------------
(UNAUDITED) 1999 1998 1997*
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.65 $ 9.80 $11.30 $10.00
------- ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.13)(d) (0.08) (0.08) (0.10)(d)
Net realized and unrealized gain (loss) on investments 13.16 6.93 (1.42) 1.99
------- ------ ------ ------
Total from investment operations 13.03 6.85 (1.50) 1.89
------- ------ ------ ------
LESS DISTRIBUTIONS--
Distributions in excess of net investment income 0.00 0.00 0.00 0.00
Distributions in excess of net realized capital gains 0.00 0.00 0.00 (0.59)
------- ------ ------ ------
Total distributions 0.00 0.00 0.00 (0.59)
------- ------ ------ ------
Net asset value, end of period $ 29.68 $16.65 $ 9.80 $11.30
======= ====== ====== ======
Total return (%)(a) 78.3 69.9 (13.3) 19.2
Net assets, end of period (000) $25,035 $6,032 $1,057 $1,139
Ratios to average net assets:
Net expenses (%)(b)(c) 1.24 1.25 1.25 1.25
Gross expenses (%)(c) 1.24 1.80 3.70 7.82
Net investment income (loss) (%)(c) (0.99) (1.04) (0.80) (0.94)
Portfolio turnover (%) 94 163 116 211
</TABLE>
101
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
SMALL CAP VALUE FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
-------------------------------------------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
-------------- ------------- ------------- ------------
(UNAUDITED) 1999 1998 1997
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.33 $ 15.60 $ 18.62 $ 17.39
------------- ------------ ------------ -----------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.10 0.16 0.12 0.17
Net realized and unrealized gain
(loss) on investments 2.35 1.83 (3.14) 4.26
------------- ------------ ------------ -----------
Total from investment operations 2.45 1.99 (3.02) 4.43
------------- ------------ ------------ -----------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.14) (0.12) 0.00 (0.15)
Distributions from net realized capital gains (0.27) (0.14) 0.00 (3.05)
------------- ------------ ------------ -----------
Total distributions (0.41) (0.26) 0.00 (3.20)
------------- ------------ ------------ -----------
Net asset value, end of period $ 19.37 $ 17.33 $ 15.60 $ 18.62
============= ============ ============ ===========
Total return (%)(a) 14.5 12.8 (16.2) 26.0
Net assets, end of period (000) $ 261,009 $ 301,496 $ 296,116 $ 245,177
Ratios to average net assets:
Net expenses (%)(b)(c) 0.94 0.90 0.92 0.94
Gross expenses (%)(c) 0.94 0.90 0.92 0.94
Net investment income (loss) (%)(c) 0.77 0.87 1.04 0.97
Portfolio turnover (%) 60 113 78 94
* 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 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 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>
INSTITUTIONAL
CLASS RETAIL CLASS
------------------ -----------------------------------------------------------
SIX MONTHS NINE MONTHS
YEAR ENDED ENDED YEAR ENDED ENDED PERIOD ENDED
DECEMBER 31, MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31,
------------------ -------------- ------------- ------------- ------------
1996 1995 (UNAUDITED) 1999 1998 1997*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.33 $ 12.86 $ 17.28 $ 15.57 $ 18.62 $ 17.39
-------- ------- ------------- ----------- ----------- ----------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.11 0.04 0.04 0.09 0.10 0.15(d)
Net realized and unrealized gain
(loss) on investments 4.47 4.06 2.39 1.84 (3.15) 4.21
-------- ------- ------------- ----------- ----------- ----------
Total from investment operations 4.58 4.10 2.43 1.93 (3.05) 4.36
-------- ------- ------------- ----------- ----------- ----------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.11) (0.04) (0.09) (0.08) 0.00 (0.08)
Distributions from net realized capital gains (2.41) (1.59) (0.27) (0.14) 0.00 (3.05)
-------- ------- ------------- ----------- ----------- ----------
Total distributions (2.52) (1.63) (0.36) (0.22) 0.00 (3.13)
-------- ------- ------------- ----------- ----------- ----------
Net asset value, end of period $ 17.39 $ 15.33 $ 19.35 $ 17.28 $ 15.57 $ 18.62
======== ======= ============= =========== =========== ==========
Total return (%)(a) 30.4 32.1 14.3 12.4 (16.4) 25.6
Net assets, end of period (000) $163,625 $90,455 $ 88,181 $ 75,302 $ 54,060 $ 34,353
Ratios to average net assets:
Net expenses (%)(b)(c) 1.19 1.25 1.15 1.20 1.19 1.25
Gross expenses (%)(c) 1.19 1.25 1.15 1.20 1.19 1.35
Net investment income (loss) (%)(c) 0.80 0.29 0.56 0.57 0.79 0.79
Portfolio turnover (%) 73 155 60 113 78 94
<CAPTION>
ADMIN CLASS
---------------------------------------------
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30,
-------------- ------------- -------------
(UNAUDITED) 1999 1998**
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $17.24 $15.54 $18.62
------ ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.02 0.04 0.03
Net realized and unrealized gain
(loss) on investments 2.39 1.83 (3.11)
------ ------ ------
Total from investment operations 2.41 1.87 (3.08)
------ ------ ------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.04) (0.03) 0.00
Distributions from net realized capital gains (0.27) (0.14) 0.00
------ ------ ------
Total distributions (0.31) (0.17) 0.00
------ ------ ------
Net asset value, end of period $19.34 $17.24 $15.54
====== ====== ======
Total return (%)(a) 14.2 12.0 (16.5)
Net assets, end of period (000) $7,838 $4,863 $1,046
Ratios to average net assets:
Net expenses (%)(b)(c) 1.45 1.50 1.50
Gross expenses (%)(c) 1.45 1.70 3.99
Net investment income (loss) (%)(c) 0.25 0.30 0.95
Portfolio turnover (%) 60 113 78
</TABLE>
103
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
FINANCIAL HIGHLIGHTS
WORLDWIDE FUND
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS
-------------------------------------------------
SIX MONTHS NINE MONTHS
ENDED YEAR ENDED ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30,
-------------- ------------- -------------
(UNAUDITED) 1999 1998
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.28 $ 8.79 $ 9.86
-------- ------ -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.21 0.50 0.33
Net realized and unrealized gain (loss)
on investments 5.45 1.82 (1.40)
-------- ------ -------
Total from investment operations 5.66 2.32 (1.07)
-------- ------ -------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.48) (0.44) 0.00
Distributions from net realized capital gains (0.47) (0.39) 0.00
-------- ------ -------
Total distributions (0.95) (0.83) 0.00
-------- ------ -------
Net asset value, end of period $ 14.99 $10.28 $ 8.79
======== ====== =======
Total return (%)(a) 57.7 27.8 (10.9)
Net assets, end of period (000) $ 10,618 $6,233 $ 4,907
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00 1.00
Gross expenses (%)(c) 2.67 3.46 3.28
Net investment income (loss) (%)(c) 3.45 5.07 4.37
Portfolio turnover (%) 91 165 93
* COMMENCEMENT OF CLASS OPERATIONS ON MAY 1, 1996 THROUGH DECEMBER 31, 1996.
** 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 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 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>
INSTITUTIONAL CLASS RETAIL CLASS
--------------------------- ----------------------------------------------
SIX MONTHS NINE MONTHS
YEAR ENDED PERIOD ENDED ENDED YEAR ENDED ENDED
DECEMBER 31, DECEMBER 31, MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30,
------------ ------------ -------------- ------------- -------------
1997 1996* (UNAUDITED) 1999 1998
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.63 $10.00 $10.25 $ 8.76 $ 9.86
------ ------ ------ ------ ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.47 0.30 0.21 0.44 0.30(d)
Net realized and unrealized gain (loss)
on investments (0.10) 0.63 5.42 1.86 (1.40)
------ ------ ------ ------ ------
Total from investment operations 0.37 0.93 5.63 2.30 (1.10)
------ ------ ------ ------ ------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.47) (0.30) (0.45) (0.42) 0.00
Distributions from net realized capital gains (0.67) 0.00 (0.47) (0.39) 0.00
------ ------ ------ ------ ------
Total distributions (1.14) (0.30) (0.92) (0.81) 0.00
------ ------ ------ ------ ------
Net asset value, end of period $ 9.86 $10.63 $14.96 $10.25 $ 8.76
====== ====== ====== ====== ======
Total return (%)(a) 3.5 9.2 57.5 27.6 (11.2)
Net assets, end of period (000) $5,597 $5,189 $ 390 $ 138 $ 73
Ratios to average net assets:
Net expenses (%)(b)(c) 1.00 1.00 1.25 1.25 1.25
Gross expenses (%)(c) 2.62 3.72 11.81 20.19 24.69
Net investment income (loss) (%)(c) 3.89 4.62 3.20 4.88 3.88
Portfolio turnover (%) 134 76 91 165 93
<CAPTION>
RETAIL CLASS
------------
PERIOD ENDED
DECEMBER 31,
------------
1997**
- ------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 10.63
-------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.38(d)
Net realized and unrealized gain (loss)
on investments (0.03)
-------
Total from investment operations 0.35
-------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.45)
Distributions from net realized capital gains (0.67)
-------
Total distributions (1.12)
-------
Net asset value, end of period $ 9.86
=======
Total return (%)(a) 3.3
Net assets, end of period (000) $ 20
Ratios to average net assets:
Net expenses (%)(b)(c) 1.25
Gross expenses (%)(c) 214.91
Net investment income (loss) (%)(c) 3.58
Portfolio turnover (%) 134
</TABLE>
105
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
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 Municipal Bond Fund Loomis Sayles International Equity Fund
Loomis Sayles Short-Term Bond Fund Loomis Sayles Mid-Cap Value 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 Loomis Sayles Emerging Markets and Global Technology Funds commenced
operations on November 9, 1999 and February 1, 2000, respectively.
The Equity Funds offer Institutional and Retail Class shares (the Small Cap
Value Fund also offers an Admin Class). Each class has equal pro rata interest
in the assets of the relevant fund and general voting privileges. Retail,
Institutional and Admin Classes differ with respect to distribution and certain
other class-specific expenses and expense reductions. Retail and Admin Class
shares are subject to distribution fees 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 service fee 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 preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following summarizes the
significant accounting policies of the Equity Funds:
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
A. SECURITY VALUATION -- Equity securities for which quotations are readily
available are valued at their last sale price on the exchange 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
securities) are maintained in U.S. dollars. The value of securities, currencies
and other assets and liabilities denominated in currencies other than U.S.
dollars is translated into U.S. dollars based upon foreign exchange rates
prevailing at the end of the period. Purchases and sales of investment
securities are translated at contractual currency exchange rates established at
the time of the trade. 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 securities held. All such fluctuations are included with net realized
and unrealized gain or loss on investments.
Net realized and unrealized gains and losses on foreign currency transactions
represent foreign exchange gains and losses from the sale of holdings of foreign
currencies, foreign currency gains and losses between trade dates and settlement
dates on investment securities transactions, sales and maturities of forward
foreign currency exchange contracts, and the difference between the amounts of
daily interest and dividend accruals on the books of the Funds and the amounts
actually received resulting from changes in exchange rates on the payable date.
107
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
Certain funds use foreign currency exchange contracts to facilitate transactions
in foreign-denominated securities. 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 securities 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 securities may enter into forward foreign currency exchange contracts to
protect its securities 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 March 31, 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 according to the
effective interest method. In determining net gain or loss on securities sold,
the cost of securities are 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 are apportioned among the Funds
based upon relative net assets.
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
Investment income, realized and unrealized 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. Each
class of shares differs in its respective distribution and certain other class
specific fees and expense reductions.
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.
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 generally accepted
accounting principles. These differences, which may result in reclassifications
to the Fund's 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 are
determined on a Fund level.
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. For the
period ended March 31, 2000, the redemption fees amounted to $0 for the
Institutional Class.
I. ORGANIZATION EXPENSE -- Organization costs incurred by the Worldwide Fund
are being amortized over 60 months.
2. PURCHASES AND SALES OF SECURITIES -- (excluding long-term U.S. Government
securities and short-term investments) for each Fund for the six months ended
March 31, 2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C> <C>
Aggressive Growth Fund ............... $ 77,848,596 $ 43,987,045
Core Value Fund ...................... 23,044,161 38,136,544
Emerging Markets Fund ................ 5,054,989 2,736,071
Global Technology Fund ............... 18,947,533 4,961,041
Growth Fund .......................... 37,539,887 37,834,035
International Equity Fund ............ 147,063,051 122,073,646
Mid-Cap Value Fund ................... 6,989,624 7,519,016
Small Cap Growth Fund ................ 201,145,545 142,053,420
Small Cap Value Fund ................. 214,434,278 264,929,821
Worldwide Fund ....................... 7,198,070 7,829,954
</TABLE>
109
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES -- For the six
months ended March 31, 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 Metropolitan Life Insurance Company. Metropolitan Life
Insurance Company is a wholly owned subsidiary of MetLife, Inc., a publicly
traded company. Separate management agreements for each Fund in effect during
the six months ended March 31, 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>
Aggressive Growth Fund .......... 0.75% 1.00% 1.25% --
Core Value Fund ................. 0.50% 0.85% 1.10% --
Emerging Markets Fund ........... 1.25% 2.25% -- --
Global Technology Fund .......... 1.00% 1.50% 1.75% --
Growth Fund ..................... 0.50% 0.85% 1.10% --
International Equity Fund ....... 0.75% 1.00% 1.25% --
Mid-Cap Value Fund .............. 0.75% 1.00% 1.25% --
Small Cap Growth Fund ........... 0.75% 1.00% 1.25% --
Small Cap Value Fund ............ 0.75% 1.00% 1.25% 1.50%
Worldwide Fund .................. 0.75% 1.00% 1.25% --
</TABLE>
The Institutional Class and Retail Class of shares of the Funds may pay Loomis
Sayles Distributors, L.P. (the "Distributor"), a subsidiary of the investment
adviser, sub-accounting and/or servicing fees with respect to omnibus Fund
shareholder accounts in amounts that will not cause the Funds' respective
classes to exceed their voluntary expense 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 March 31, 2000, the
following amounts were paid under this arrangement:
<TABLE>
<CAPTION>
SHARE AMOUNTS
FUND CLASS PAID
--------------------- ------------- ----------
<S> <C> <C>
Core Value Fund Institutional $ 2,224
Small Cap Growth Fund Institutional 202
Small Cap Value Fund Institutional 57,338
</TABLE>
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
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, Metropolitan Life Insurance Company 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 March 31, 2000, Loomis-Sayles Funded Pension Plan and
the Loomis Sayles & Company, L.P. Employees' Defined Contribution Retirement
Plans held shares of beneficial interest in the Funds as follows:
<TABLE>
<CAPTION>
DEFINED
PENSION CONTRIBUTION
PLAN PLANS
-------- ------------
<S> <C> <C>
Aggressive Growth Fund ................. 138,014 528,838
Core Value Fund ........................ 339,190 573,633
Emerging Markets Fund .................. 0 0
Global Technolgy Fund .................. 0 0
Growth Fund ............................ 193,689 1,141,259
International Equity Fund .............. 1,142,245 675,246
Mid-Cap Value Fund ..................... 177,016 103,303
Small Cap Growth Fund .................. 259,073 378,437
Small Cap Value Fund ................... 220,229 570,233
Worldwide Fund ......................... 542,066 124,404
</TABLE>
4. LINE OF CREDIT -- The Trust has entered into an agreement which enables
each 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. During the six months ended March 31,
2000, the Funds had no borrowings under the agreement.
5. CAPITAL SHARE TRANSACTIONS -- The tables below summarize the transactions
in Fund shares for the periods indicated:
111
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
LOOMIS SAYLES AGGRESSIVE GROWTH FUND
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------- ----------------------------
INSTITUTIONAL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
<S> <C> <C> <C> <C>
Issued from the sale of shares .......... 456,764 $ 18,444,540 618,252 $ 10,015,209
Issued in connection with the
reinvestment of distributions ........ 29,485 838,267 6,972 75,990
Redeemed ................................ (180,504) (7,282,117) (159,705) (2,492,335)
---------- ------------ ---------- ------------
Net change .............................. 305,745 $ 12,000,690 465,519 $ 7,598,864
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
RETAIL CLASS SHARES SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
Issued from the sale of shares .......... 763,560 $ 32,203,894 54,856 $ 1,063,819
Issued in connection with the
reinvestment of distributions ........ 3,146 89,009 292 3,175
Redeemed ................................ (136,280) (5,875,918) (4,427) (86,051)
---------- ------------ ---------- ------------
Net change .............................. 630,426 $ 26,416,985 50,721 $ 980,943
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
<CAPTION>
LOOMIS SAYLES CORE VALUE FUND
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------- ----------------------------
INSTITUTIONAL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
<S> <C> <C> <C> <C>
Issued from the sale of shares .......... 414,346 $ 6,130,831 664,692 $ 11,896,666
Issued in connection with the
reinvestment of distributions ........ 491,545 7,448,229 473,243 7,737,518
Redeemed ................................ (1,503,741) (21,439,726) (1,076,592) (19,066,379)
---------- ------------ ---------- ------------
Net change .............................. (597,850) $ (7,860,666) 61,343 $ 567,805
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
RETAIL CLASS SHARES SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
Issued from the sale of shares .......... 15,190 $ 228,197 1,325 $ 24,196
Issued in connection with the
reinvestment of distributions ........ 3,703 55,887 6,562 107,155
Redeemed ................................ (30,927) (473,514) (31,627) (546,028)
---------- ------------ ---------- ------------
Net change .............................. (12,034) $ (189,430) (23,740) $ (414,677)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
<CAPTION>
LOOMIS SAYLES
EMERGING MARKETS FUND
-------------------------
SIX MONTHS ENDED
MARCH 31, 2000*
-------------------------
INSTITUTIONAL CLASS SHARES AMOUNT
- ------------------- ------ -------
<S> <C> <C>
Issued from the sale of shares .......... 212,271 $ 2,642,994
Issued in connection with the
reinvestment of distributions ........ 0 0
Redeemed ................................ (0) (0)
---------- ------------
Net change .............................. 212,271 $ 2,642,994
---------- ------------
---------- ------------
* FROM NOVEMBER 9, 1999 (COMMENCEMENT OF OPERATIONS).
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<CAPTION>
LOOMIS SAYLES
GLOBAL TECHNOLOGY FUND
-------------------------
SIX MONTHS ENDED
MARCH 31, 2000*
-------------------------
INSTITUTIONAL CLASS SHARES AMOUNT
- ------------------- ------ -------
<S> <C> <C>
Issued from the sale of shares .......... 639,302 $ 8,278,827
Issued in connection with the
reinvestment of distributions ........ 0 0
Redeemed ................................ (78,182) (1,170,819)
---------- ------------
Net change .............................. 561,120 $ 7,108,008
---------- ------------
---------- ------------
RETAIL CLASS SHARES AMOUNT
- ------------------- ------ -------
Issued from the sale of shares .......... 610,279 $ 8,364,261
Issued in connection with the
reinvestment of distributions ........ 0 0
Redeemed ................................ (88,496) (1,289,735)
---------- ------------
Net change .............................. 521,783 $ 7,074,526
---------- ------------
---------- ------------
* FROM FEBRUARY 1, 2000 (COMMENCEMENT OF OPERATIONS).
<CAPTION>
LOOMIS SAYLES GROWTH FUND
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------- ----------------------------
INSTITUTIONAL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
<S> <C> <C> <C> <C>
Issued from the sale of shares .......... 477,777 $ 6,369,437 595,614 $ 6,698,266
Issued in connection with the
reinvestment of distributions ........ 213,234 2,582,261 670,374 6,335,038
Redeemed ................................ (475,503) (6,664,663) (855,375) (10,013,356)
---------- ------------ ---------- ------------
Net change .............................. 215,508 $ 2,287,035 410,613 $ 3,019,948
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
RETAIL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
Issued from the sale of shares .......... 12,851 $ 162,972 6,413 $ 68,404
Issued in connection with the
reinvestment of distributions ........ 4,782 57,295 15,812 148,319
Redeemed ................................ (10,549) (136,146) (8,103) (90,325)
---------- ------------ ---------- ------------
Net change .............................. 7,084 $ 84,121 14,122 $ 126,398
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
113
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<CAPTION>
LOOMIS SAYLES INTERNATIONAL EQUITY FUND
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------- ----------------------------
INSTITUTIONAL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
<S> <C> <C> <C> <C>
Issued from the sale of shares .......... 2,628,675 $ 55,141,169 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 ................................ (2,266,870) (48,086,545) (1,969,173) (23,718,130)
---------- ------------ ---------- ------------
Net change .............................. 655,759 $ 12,006,810 (616,716) $ (7,161,725)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
RETAIL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
Issued from the sale of shares .......... 1,059,224 $ 23,598,799 24,790 $ 308,832
Issued in connection with the
reinvestment of distributions ........ 3,716 62,151 303 3,596
Redeemed ................................ (375,240) (7,615,712) (20,105) (246,479)
---------- ------------ ---------- ------------
Net change .............................. 687,700 $ 16,045,238 4,988 $ 65,949
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
<CAPTION>
LOOMIS SAYLES MID-CAP VALUE FUND
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------- ----------------------------
INSTITUTIONAL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
<S> <C> <C> <C> <C>
Issued from the sale of shares .......... 52,887 $ 594,785 279,307 $ 3,112,395
Issued in connection with the
reinvestment of distributions ........ 17,817 200,961 11,273 118,596
Redeemed ................................ (133,422) (1,518,145) (156,082) (1,774,885)
---------- ------------ ---------- ------------
Net change .............................. (62,718) $ (722,399) 134,498 $ 1,456,106
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
RETAIL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
Issued from the sale of shares .......... 4,142 $ 46,458 42,401 $ 463,646
Issued in connection with the
reinvestment of distributions ........ 668 7,516 453 4,763
Redeemed ................................ (2,742) (30,050) (33,784) (355,310)
---------- ------------ ---------- ------------
Net change .............................. 2,068 $ 23,924 9,070 $ 113,099
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<CAPTION>
LOOMIS SAYLES SMALL CAP GROWTH FUND
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------- ----------------------------
INSTITUTIONAL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
<S> <C> <C> <C> <C>
Issued from the sale of shares .......... 2,554,538 $ 68,727,852 4,039,306 $ 55,415,969
Issued in connection with the
reinvestment of distributions ........ 0 0 0 0
Redeemed ................................ (759,574) (20,740,593) (941,632) (12,823,404)
---------- ------------ ---------- ------------
Net change .............................. 1,794,964 $ 47,987,259 3,097,674 $ 42,592,565
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
RETAIL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
Issued from the sale of shares .......... 561,739 $ 14,671,366 291,080 $ 3,589,032
Issued in connection with the
reinvestment of distributions 0 0 0 0
Redeemed ................................ (80,604) (2,373,036) (36,590) (455,005)
---------- ------------ ---------- ------------
Net change .............................. 481,135 $ 12,298,330 254,490 $ 3,134,027
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
<CAPTION>
LOOMIS SAYLES SMALL CAP VALUE FUND
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------- ----------------------------
INSTITUTIONAL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
<S> <C> <C> <C> <C>
Issued from the sale of shares .......... 1,180,762 $ 20,864,358 4,989,202 $ 84,737,535
Issued in connection with the
reinvestment of distributions ........ 369,741 6,346,714 270,395 4,518,305
Redeemed ................................ (5,473,577) (98,158,845) (6,836,078) (116,873,636)
---------- ------------ ---------- ------------
Net change .............................. (3,923,074) $(70,947,773) (1,576,481) $(27,617,796)
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
RETAIL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
Issued from the sale of shares .......... 1,729,030 $ 30,091,975 2,803,843 $ 48,225,107
Issued in connection with the
reinvestment of distributions ........ 102,820 1,765,489 46,592 778,544
Redeemed ................................ (1,632,808) (28,833,494) (1,964,598) (33,831,385)
---------- ------------ ---------- ------------
Net change .............................. 199,042 $ 3,023,970 885,837 $ 15,172,266
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
ADMIN CLASS SHARES AMOUNT SHARES AMOUNT
- ----------- ------ ------- ------ ------
Issued from the sale of shares .......... 185,731 $ 3,250,881 462,206 $ 7,924,628
Issued in connection with the
reinvestment of distributions ........ 3,646 62,683 1,071 17,884
Redeemed ................................ (66,135) (1,182,730) (248,524) (4,284,027)
---------- ------------ ---------- ------------
Net change .............................. 123,242 $ 2,130,834 214,753 $ 3,658,485
---------- ------------ ---------- ------------
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115
<PAGE>
LOOMIS SAYLES EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
<CAPTION>
LOOMIS SAYLES WORLDWIDE FUND
--------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPTEMBER 30, 1999
------------------------- ----------------------------
INSTITUTIONAL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
<S> <C> <C> <C> <C>
Issued from the sale of shares .......... 66,482 $ 931,565 21,333 $ 207,430
Issued in connection with the
reinvestment of distributions ........ 48,902 580,451 51,481 461,788
Redeemed ................................ (13,441) (177,114) (24,798) (246,534)
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Net change .............................. 101,943 $ 1,334,902 48,016 $ 422,684
---------- ------------ ---------- ------------
---------- ------------ ---------- ------------
RETAIL CLASS SHARES AMOUNT SHARES AMOUNT
- ------------------- ------ ------- ------ ------
Issued from the sale of shares .......... 15,892 $ 233,673 6,580 $ 63,000
Issued in connection with the
reinvestment of distributions ........ 989 11,696 549 4,916
Redeemed ................................ (4,313) (58,244) (1,936) (18,780)
---------- ------------ ---------- ------------
Net change .............................. 12,568 $ 187,125 5,193 $ 49,136
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- ------------------------
LOOMIS * SAYLES FUNDS
ONE FINANCIAL CENTER
BOSTON, MA 02111
TELEPHONE (800) 633-3330
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