LOOMIS SAYLES INVESTMENT TRUST, N-1A EL, 1997-03-07

LOOMIS SAYLES INVESTMENT TRUST
N-1A EL, 1997-03-07

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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MARCH 7, 1997
Registration Nos. 333-
811-8282

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
____________________

FORM N-1A

REGISTRATION STATEMENT UNDER

THE SECURITIES ACT OF 1933 [X]

Pre-Effective Amendment No. [ ]

Post-Effective Amendment No. [ ]

REGISTRATION STATEMENT UNDER
THE INVESTMENT COMPANY ACT OF 1940 [X]

Amendment No. 9 [X]
(Check appropriate box or boxes)
____________________

LOOMIS SAYLES INVESTMENT TRUST
(Exact name of registrant as specified in charter)

One Financial Center, Boston, MA 02111
(Address of principal executive offices)

Registrant's Telephone Number, Including Area Code: (617) 482-2450

Name and address
of agent for service Copy to
-------------------- -------

Sandra P. Tichenor, Esq. J.B. Kittredge, Esq.
Loomis, Sayles & Company, L.P. Ropes & Gray
One Financial Center One International Place
Boston, MA 02111 Boston, MA 02110

Approximate date of proposed public offering: As soon as practicable after the
effective date of this Registration Statement under the Securities Act of
1933.

It is proposed that this filing will become effective (check appropriate
box):

[_] Immediately upon filing pursuant to paragraph (b)

[_] On _____________ pursuant to paragraph (b)

[_] 60 days after filing pursuant to paragraph (a)(1)

[_] On _____________ pursuant to paragraph (a)(1)

[_] 75 days after filing pursuant to paragraph (a)(2)

[_] On _____________ pursuant to paragraph (a)(2) of rule 485

If appropriate, check the following box:

[_] This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.

Pursuant to Rule 24f-2 under the Investment Company Act of 1940, the Registrant
hereby declares that an indefinite number or amount of its shares of beneficial
interest is being registered under the Securities Act of 1933.
<PAGE>

____________________

The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant shall
file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
<PAGE>

LOOMIS SAYLES INVESTMENT TRUST
CROSS REFERENCE SHEET PURSUANT TO RULE 481(A)
ITEMS REQUIRED BY FORM N-1A

PART A

<TABLE>
<CAPTION>
ITEM NO. REGISTRATION STATEMENT CAPTION CAPTION IN PROSPECTUSES
<S> <C> <C>
1. Cover Page Cover Page

2. Synopsis Summary of Expenses

3. Condensed Financial Other Information
Information

4. General Description of Cover Page; The
Registrant Trust; Investment
Objective and
Policies; and More
Information About the
Fund's Investments

5. Management of the Fund Cover Page; The
Trust; The Fund's
Investment Adviser;
Fund Expenses; and
Portfolio Transactions

5A. Management's Discussion of Not applicable
Fund Performance

6. Capital Stock and Other Cover Page; The
Securities Trust; How to
Redeem Shares; and
Dividends, Capital
Gain Distributions and
Taxes; and Other
Information

7. Purchase of Securities How to Purchase
Being Offered Shares
</TABLE>

<PAGE>

<TABLE>
<S> <C> <C>
8. Redemption or Repurchase How to Redeem
Shares

9. Pending Legal Not applicable
Proceedings
</TABLE>

PART B

<TABLE>
<CAPTION>
ITEM NO. REGISTRATION STATEMENT CAPTION CAPTION IN STATEMENTS OF
ADDITIONAL INFORMATION
<S> <C> <C>
10. Cover Page Cover Page

11. Table of Contents Table of Contents

12. General Information and Not applicable
History

13. Investment Objectives Investment Objective,
and Policies Policies and Restrictions

14. Management of the Fund Management of the Trust

15. Control Persons and Management of the Trust
Principal Holders of
Securities

16. Investment Advisory and Investment Advisory and
Other Services Other Services

17. Brokerage Allocation and Portfolio Transactions
Other Practices and Brokerage

18. Capital Stock and Other How to Redeem Shares
Securities (Prospectus);
Redemptions; Dividends,
Capital Gain
Distributions and Taxes
(Prospectus); Income
Dividends, Capital Gain
Distributions and Tax
Status; and Description
of the Trust
</TABLE>

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<PAGE>

<TABLE>
<S> <C> <C>
19. Purchase, Redemption How to Purchase Shares
and Pricing of Securities (Prospectus); How to
Being Offered Redeem Shares
(Prospectus);
Redemptions; and Net
Asset Value

20. Tax Status Dividends, Capital Gain
Distributions and Taxes
(Prospectus); Income
Dividends, Capital Gain
Distributions and Tax
Status

21. Underwriters Not applicable

22. Calculations of Calculation of Yield and
Performance Data Total Return; Performance
Comparisons; and
Performance Data

23. Financial Statements Financial Statements
</TABLE>

PART C

The information required to be included in Part C is set forth under the
appropriate Item, so numbered, in Part C of the Registration Statement.

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<PAGE>

This Registration Statement relates solely to interests in the Loomis
Sayles Investment Grade Fixed Income Fund series, the Loomis Sayles Fixed Income
Fund series, the Loomis Sayles California Tax-Free Income Fund series, the
Loomis Sayles Core Growth Fund series, the Loomis Sayles High Yield Fixed Income
Fund series, the Loomis Sayles Core Fixed Income Fund series and the Loomis
Sayles Intermediate Duration Fixed Income Fund series of Loomis Sayles
Investment Trust. Private Placement Memoranda and Statements of Additional
Information for the Loomis Sayles Convertible Bond Fund series and the Loomis
Sayles Mortgage Securities Fund series of Loomis Sayles Investment Trust are
neither amended nor superseded by this Registration Statement.

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<PAGE>

LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND

ONE FINANCIAL CENTER
BOSTON, MASSACHUSETTS 02111
(617) 482-2450

PROSPECTUS

MARCH 7, 1997

The Loomis Sayles Investment Trust (the "Trust") is a group of nine mutual
funds including the Loomis Sayles Investment Grade Fixed Income Fund (the
"Fund"). The other series which are publicly offered by the Trust and are
described in separate prospectuses are:

Loomis Sayles California Tax-Free Income Fund
Loomis Sayles Core Fixed Income Fund
Loomis Sayles Core Growth Fund
Loomis Sayles Fixed Income Fund
Loomis Sayles High Yield Fixed Income Fund
Loomis Sayles Intermediate Duration Fixed Income Fund

Except for the California Tax-Free Income Fund, the funds are designed
specifically for tax-exempt investors such as pension plans, endowments and
foundations, although other institutions and high net-worth individuals are
eligible to invest. Each of the funds is separately managed and has its own
investment objective and policies. Loomis, Sayles & Company, L.P. ("Loomis
Sayles") is the investment adviser of each of the funds.

This Prospectus concisely describes the information that you should know
before investing in the Fund. Please read it carefully and keep it for future
reference. A Statement of Additional Information dated March 7, 1997 is
available free of charge; to obtain a free copy or to make any inquiries about
the Fund write to Loomis Sayles Investment Trust, One Financial Center, Boston,
Massachusetts 02111 or telephone (617) 482-2450. The Statement of Additional
Information, which contains more detailed information about the Fund, has been
filed with the Securities and Exchange Commission (the "SEC") and is
incorporated by reference into this Prospectus.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.

<PAGE>

TABLE OF CONTENTS

<TABLE>
<S> <C>
SUMMARY OF EXPENSES..................................................... - 3 -

PRIOR PERFORMANCE....................................................... - 4 -

THE TRUST............................................................... - 5 -

INVESTMENT OBJECTIVE AND POLICIES....................................... - 5 -

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS........................... - 6 -

THE FUND'S INVESTMENT ADVISER........................................... - 9 -

FUND EXPENSES........................................................... - 10 -

PORTFOLIO TRANSACTIONS.................................................. - 10 -

HOW TO PURCHASE SHARES.................................................. - 10 -

HOW TO REDEEM SHARES.................................................... - 11 -

OTHER INFORMATION....................................................... - 11 -

DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAXES......................... - 12 -
</TABLE>

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<PAGE>

SUMMARY OF EXPENSES

The following information is provided to assist you in understanding the
various costs and expenses that, as an investor in the Fund, you will bear
directly or indirectly. The information is based on expenses for the Fund's
fiscal year ended December 31, 1996. The information below should not be
considered a representation of past or future expenses, as actual expenses may
be greater or less than those shown. Also, the assumed 5% annual return in the
example should not be considered a representation of investment performance, as
actual performance will depend upon the actual investment results of securities
held in the Fund's portfolio.

<TABLE>
<S> <C>
Shareholder Transaction Expenses:
Maximum Sales Load Imposed on
Purchases (as a percentage of offering price) none
Maximum Sales Load Imposed on
Reinvested Dividends (as a percentage of
offering price) none
Deferred Sales Load (as a percentage of original
purchase price or redemption
proceeds, as applicable) none
Redemption Fees (as a percentage of amount redeemed) none
Exchange Fees none

Annual Operating Expenses
(as a percentage of average net assets)
Management Fees (after expense limitation)/1/ .25%
12b-1 Fees none
Other Operating Expenses .30%
Total Operating Expenses (after expense
limitation)/1/ .55%

Example
You would pay the following
expenses on a $1,000 investment
assuming a 5% annual return
(with or without a redemption at
the end of each time period):

One Year $ 6
Three Years $ 18
Five Years $ 31
Ten Years $ 69
</TABLE>

_______________________

/1/ Loomis Sayles has voluntarily undertaken for an indefinite period to
limit the Fund's total operating expenses to the percentage of average net
assets shown above. In the absence of the voluntary expense limitation,
Management Fees and Total Operating Expenses for the fiscal year ended December
31, 1996 would have been .40% and .70%, respectively.

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<PAGE>

PRIOR PERFORMANCE

(FOR A SHARE OF THE FUND OUTSTANDING THROUGHOUT THE INDICATED PERIODS)

The information presented below relates to periods prior to the
effectiveness of the Fund's registration statement under the Securities Act of
1933, as amended (the "1933 Act"). The information presented below is
included in financial statements of the Fund that have been audited by Coopers &
Lybrand L.L.P., independent accountants, whose report thereon appears in the
Fund's 1996 Annual Report. The following information should be read in
conjunction with the "Report of Independent Accountants," financial statements
and notes thereto contained in the Fund's 1996 Annual Report, which are
incorporated by reference into this Prospectus and the Statement of Additional
Information. The Fund is managed in a manner that is in all material respects
similar to the manner in which it was managed prior to the effectiveness of its
registration statement under the 1933 Act.

<TABLE>
<CAPTION>
Year Ended Year Ended July 1* through
December 31, December 31, December 31,
1996 1995 1994
---- ----- ----
<S> <C> <C> <C>
Net asset value, beginning of period......................... $ 11.56 $ 9.57 $ 10.00

Income from investment operations -
Net investment income...................................... 0.80 0.75 0.41
Net realized and unrealized gain (loss) on investments..... 0.40 2.05 (0.43)
------- ------- -------
Total from investment operations......................... 1.20 2.80 (0.02)

Less distributions -
Distributions from net investment income................... (0.79) (0.76) (0.41)
Distributions from net realized capital gains.............. (0.16) (0.05) 0.00
------- ------- -------
Total distributions...................................... (0.95) (0.81) (0.41)
------- ------- -------
Net asset value, end of period............................... $11.81 $ 11.56 $ 9.57

Total return (%)............................................. 10.87 30.28 (0.29)
Net assets, end of period (000).............................. $51,752 $21,816 $ 4,649
Ratio of operating expenses to average net assets (%)........ 0.55 0.55 0.55**
Ratio of net investment income to average net assets (%)..... 7.27 7.61 8.18**
Portfolio turnover rate (%).................................. 73.8 21.6 112.0
Without giving effect to the voluntary expense limitations:
The ratio of operating expenses to average net assets
would have been (%)........................................ 0.70 0.94 1.55**
The net investment income per share would have been.......... $0.78 $ 0.71 $ 0.36
</TABLE>

* Commencement of operations.
** Annualized.

Further information about the performance of the Fund is contained in the
Fund's semiannual and annual reports to shareholders, which may be obtained
without charge by writing or telephoning the Trust at the address and telephone
number stated on the cover of this Prospectus.

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<PAGE>

THE TRUST

The Fund is a series of the Trust. The Trust is a diversified open-end
management investment company which was organized as a Massachusetts business
trust on December 23, 1993. The Trust is authorized to issue an unlimited
number of full and fractional shares of beneficial interest in multiple series.
Shares are freely transferable and entitle shareholders to receive dividends as
determined by the Trust's board of trustees (the "Trustees") and to cast a vote
for each share held (with a fractional vote for each fractional share held) at
shareholder meetings. The Trust does not generally hold shareholder meetings
and will do so only when required by law. Shareholders may call meetings to
consider removal of the Trustees.

INVESTMENT OBJECTIVE AND POLICIES

The Fund's investment objective is above-average total investment return
through a combination of current income and capital appreciation.

The Fund seeks to achieve its objective by investing in a diversified
portfolio of debt securities, although up to 20% of its assets may be invested
in preferred stocks. Under normal market conditions, the Fund will invest at
least 65% of its total assets in investment grade fixed income securities. Debt
securities may include corporate securities, securities issued or guaranteed by
the U.S. Government, its authorities, agencies or instrumentalities, or
certificates representing undivided interests in the interest or principal of
U.S. Treasury securities ("U.S. Government Securities"), zero coupon securities,
collateralized mortgage securities and when-issued securities, which are
described herein (together with their related risks) under "More Information
About the Fund's Investments." The Fund will normally invest at least 90% of
its assets in investment grade securities. Investment grade securities include
those rated BBB and above by Standard & Poor's ("S&P") or Baa and above by
Moody's Investors Service, Inc. ("Moody's") or unrated securities that Loomis
Sayles has determined to be of comparable quality. The Fund may continue to
hold securities that are downgraded in quality subsequent to their purchase if,
in the opinion of Loomis Sayles, it would be advantageous to do so. The Fund
may invest a portion of its assets in securities of Canadian issuers, and a
limited portion of its assets in securities of other foreign issuers. See "More
Information About the Fund's Investments; Foreign Securities."

The percentages of the Fund's net assets invested during the fiscal year
ended December 31, 1996 in securities assigned to the various rating categories
by S&P and Moody's on a dollar-weighted basis were approximately as follows:
"AAA"/"Aaa," 26.6%; "AA"/"Aa," 9.6%; "A"/"A," 14.7%; "BBB"/"Baa," 40.7%;
"BB"/"Ba," 2.9%; "B"/"B," 2.8%; and below "B," 0.5%. The percentage of the
Fund's net assets invested during such fiscal year in unrated debt securities as
a group was approximately 0.1%. The percentages of the Fund's net assets
invested during such fiscal year in such unrated securities (categorized by
comparable rating category) were approximately as follows: "AAA"/"Aaa," 0%;
"AA"/"Aa," 0%; "A"/"A," 0%; "BBB"/"Baa," 0%; "BB"/"Ba," 0%; "B"/"B," 0.1%; and
below "B," 0%.

Some of the Fund's investment restrictions are "fundamental" and cannot be
changed without a majority vote of the Fund's shareholders. Such restrictions
include: (1) a restriction prohibiting the Fund from making loans; (2) a
restriction prohibiting the Fund from purchasing a security (other than U.S.
Government Securities) if, as a result, more than 25% of the Fund's total assets
(taken at current value) would be invested in any one industry; (3) a
restriction prohibiting the Fund from borrowing money in excess of 10% of its
total assets (taken at cost) or 5% of its total assets (taken at current value),
whichever is lower, and from borrowing any money except as a temporary measure
for extraordinary or emergency purposes; and (4) a restriction prohibiting the
Fund from purchasing any illiquid security including a security that is not
readily marketable if, as a result, more than 15% of the Fund's net assets based
on current value would then be invested in such security. For additional
investment restrictions, see the Statement of Additional Information.

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<PAGE>

illiquid, unless Loomis Sayles has determined, under guidelines established by
the Trustees, that the particular issue of Rule 144A securities is liquid.

The investment objective of the Fund is " fundamental" and cannot be
changed without a majority vote of the Fund's shareholders. All investment
policies other than those that are identified as "fundamental" may be changed by
the Trustees without a vote of the Fund's shareholders.

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS

The net asset value of the Fund's shares will vary as a result of changes
in the value of securities in the Fund's portfolio. The following describes the
types of securities in which the Fund will principally invest and the risks
associated with them. Additional information about the Fund's investment
practices can be found in the Statement of Additional Information.

FIXED INCOME SECURITIES
- -----------------------

The Fund may invest in fixed income securities of any maturity. Fixed
income securities pay a specified rate of interest or dividends. Fixed income
securities include securities issued by federal, state, local and foreign
governments and related agencies, and by a wide range of foreign and domestic
private issuers. The Fund may also invest in other debt securities that pay a
rate of interest or dividends that is adjusted periodically by reference to some
specified index or market rate. Such securities are included within the
definition of fixed income securities as used in this Prospectus other than for
purposes of determining compliance with the Fund's investment policy of
investing, under normal market conditions, at least 65% of its total assets in
investment grade fixed income securities. Because interest rates vary, it is
impossible to predict the income of the Fund for any particular period.

Fixed income securities are subject to market and credit risk. Market risk
relates to changes in a security's value as a result of changes in interest
rates generally. In general, the values of fixed income securities increase
when prevailing interest rates fall and decrease when interest rates rise.
Credit risk relates to the ability of the issuer to make payments of principal
and interest. Generally, the longer the maturity of a fixed income security,
the greater the fluctuations in its value because of market and credit risk.

U.S. GOVERNMENT SECURITIES
- --------------------------

U.S. Government Securities have different kinds of government support. For
example, some U.S. Government Securities, such as U.S. Treasury bonds, are
supported by the full faith and credit of the United States, whereas certain
other U.S. Government Securities issued or guaranteed by federal agencies or
government-sponsored enterprises are not supported by the full faith and credit
of the United States.

Although U.S. Government Securities generally do not involve the credit
risks associated with other types of fixed income securities, the market values
of U.S. Government Securities will fluctuate as interest rates change. Thus,
for example, the value of an investment in U.S. Government Securities may fall
during times of rising interest rates. Yields on U.S. Government Securities tend
to be lower than those of other fixed income securities of comparable
maturities.

Some U.S. Government Securities, such as Government National Mortgage
Association Certificates, are known as "mortgage-backed" securities,
representing interests in "pools" of mortgage loans secured by residential or
commercial real property. Interest and principal payments on the mortgages
underlying mortgage-backed U.S. Government Securities are passed through to the
holders of the security. If the Fund purchases mortgage-backed securities at a
discount or a premium, the Fund will recognize a gain or loss when the payments
of principal, through prepayment or otherwise, are passed through to the Fund
and, if the payment occurs in a period of falling interest rates, the Fund may
not be able to reinvest the payment at as favorable an interest rate. As a
result of these principal prepayment features, mortgage-backed securities are
generally more volatile investments than many other fixed income securities.
See "Collateralized Mortgage Obligations" below for additional information
regarding the risks associated with mortgage-backed securities.

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<PAGE>

In addition to investing directly in U.S. Government Securities, the Fund
may purchase certificates of accrual or similar instruments ("strips")
evidencing undivided ownership interests in interest payments or principal
payments, or both, in U.S. Treasury securities. These investment instruments may
be highly volatile.

ZERO COUPON SECURITIES
- ----------------------

The Fund may invest in "zero coupon" fixed income securities. These
securities accrue interest at a specified rate, but do not pay interest in cash
on a current basis. The Fund is required to distribute the income on zero
coupon securities to Fund shareholders as the income accrues, even though the
Fund is not receiving the income in cash on a current basis. Thus the Fund may
be forced to sell other investments to obtain cash to make income distributions
at times when Loomis Sayles would not otherwise deem it advisable to do so. The
market value of zero coupon securities is generally more volatile than that of
non-zero coupon fixed income securities of comparable quality and maturity.

COLLATERALIZED MORTGAGE OBLIGATIONS
- -----------------------------------

The Fund may invest in collateralized mortgage obligations ("CMOs"). A CMO
is a limited recourse security backed by a portfolio of mortgages or, more
typically, by mortgage-backed securities held under an indenture. CMOs may be
issued by instrumentalities of the U.S. Government or by non-governmental
entities. The issuer's obligation to make interest and principal payments is
derived from and secured by the underlying portfolio of mortgages or mortgage-
backed securities. CMOs are issued with a number of classes or series which
have different maturities and which may represent interests in some or all of
the interest or principal payments on the underlying collateral or a combination
thereof. CMOs of different classes or series are generally retired in sequence
as the underlying mortgage loans in the mortgage pool are repaid. In the event
of sufficient early prepayments on such mortgages, the class or series of CMOs
first to mature generally will be retired prior to its maturity. As with other
mortgage-backed securities, the early retirement of a particular class or series
of CMOs held by the Fund could involve the loss of any premium the Fund paid
when it acquired the investment and could result in the Fund's reinvesting the
proceeds at a lower interest rate than the interest rate paid by the retired
CMO. A faster than anticipated rate of prepayments will generally result in
losses on CMO's representing interests in the interest payments on the
underlying portfolio of mortgage-backed securities. Because of the early
retirement feature, CMOs may be more volatile than many other fixed income
investments. In addition, slower than anticipated prepayments on the underlying
mortgages can extend the effective maturities of CMOs, subjecting them to a
greater risk of decline in market value in response to rising interest rates
than traditional debt securities.

COMMERCIAL MORTGAGE-BACKED SECURITIES
- -------------------------------------

The Fund may invest in commercial mortgage-backed securities. Commercial
mortgage-backed securities are securities that represent an interest in, or are
secured by, mortgage loans secured by commercial property, such as industrial
and warehouse properties, office buildings, retail space and shopping malls,
multifamily properties and cooperative apartments, hotels and motels, nursing
homes, hospitals, and senior living centers. The commercial mortgage-backed
securities market is newer and in terms of total outstanding principal amount of
issues is relatively small compared to the total size of the market for
residential mortgage-backed securities.

Commercial mortgage-backed securities are generally structured similarly to
pass-through securities or to CMOs, although other structures are possible.
They may pay fixed or adjustable rates of interest. Commercial mortgage-backed
securities have been issued in public or private transactions by a variety of
public and private issuers.

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<PAGE>

industrial and warehouse properties, are subject to environmental risks and the
burdens and costs of compliance with environmental laws and regulations. At the
same time, commercial mortgage-backed securities may have a lower prepayment
risk than residential mortgage-backed securities, because commercial mortgage
loans generally prohibit or impose penalties on prepayments of principal. In
addition, commercial mortgage-backed securities often are structured with some
form of credit enhancement to protect against potential losses on the underlying
mortgage loans.

WHEN-ISSUED SECURITIES
- ----------------------

The Fund may purchase securities on a "when-issued" basis. This means that
the Fund will enter into a commitment to buy the security before the security
has been issued. The Fund's payment obligation and the interest rate on the
security are determined when the Fund enters into the commitment. The security
is typically delivered to the Fund 15 to 120 days later. No interest accrues on
the security between the time the Fund enters into the commitment and the time
the security is issued. If the value of the security being purchased falls
between the time the Fund commits to buy it and the payment date, the Fund may
sustain a loss. The risk of this loss is in addition to the Fund's risk of loss
on the securities actually held in its portfolio at the time. When the Fund
buys a security on a when-issued basis, it is subject to the risk that market
rates of interest will increase before the time the security is delivered, with
the result that the yield on the security delivered to the Fund may be lower
than the yield available on other, comparable securities at the time of
delivery. If the Fund has outstanding obligations to buy when-issued
securities, it will maintain liquid assets in a segregated account at its
custodian bank in an amount sufficient to satisfy these obligations.

CONVERTIBLE SECURITIES
- ----------------------

Convertible securities include corporate bonds, notes or preferred stocks
of U.S. or foreign issuers that can be converted into (that is, exchanged for)
common stocks or other equity securities at a stated price or rate. Convertible
securities also include other securities, such as warrants, that provide an
opportunity for equity participation. Because convertible securities can be
converted into equity securities, their value will normally vary in some
proportion with those of the underlying equity securities. Convertible
securities usually provide a higher yield than the underlying equity security,
however, so that when the price of the underlying equity security falls, the
decline in the price of the convertible security may sometimes be less
substantial than that of the underlying equity security. Due to the conversion
feature, convertible securities generally yield less than nonconvertible fixed
income securities of similar credit quality and maturity. The Fund's investment
in convertible securities may at times include securities that have a mandatory
conversion feature, pursuant to which the securities convert automatically into
common stock at a specified date and conversion ratio, or that are convertible
at the option of the issuer. Because conversion is not at the option of the
holder, the Fund may be required to convert the security into the underlying
common stock even at times when the value of the underlying common stock has
declined substantially.

FOREIGN SECURITIES
- ------------------

The Fund may invest in securities of issuers organized or headquartered
outside the United States ("foreign securities"). The Fund will not purchase a
foreign security (for purposes of this limitation securities of Canadian issuers
publicly traded in the United States will not be treated as foreign securities)
if, as a result, the Fund's total holdings of foreign securities would exceed
20% of the Fund's total assets.

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<PAGE>

government securities may depend on the availability of tax or other revenues to
satisfy the issuer's obligations. In addition, the remedies of the Fund may be
extremely limited if a foreign issuer defaults on its obligations.

The Fund's investments in foreign securities may include investments in
countries whose economies or securities markets are not yet highly developed.
Special considerations associated with these investments (in addition to
considerations regarding foreign investments generally) may include, among
others, greater political uncertainties, an economy's dependence on revenues
from particular commodities or on international aid or development assistance,
currency transfer restrictions, highly limited numbers of potential buyers for
such securities and delays and disruptions in securities settlement procedures.

Since most foreign securities are denominated in foreign currencies or
traded primarily in securities markets in which settlements are made in foreign
currencies, the value of these investments and the net investment income
available for distribution to shareholders of the Fund may be affected favorably
or unfavorably by changes in currency exchange rates or exchange control
regulations. Changes in the value relative to the U.S. dollar of a foreign
currency in which the Fund's holdings are denominated will result in a change in
the U.S. dollar value of the Fund's assets and the Fund's income available for
distribution.

In addition, although part of the Fund's income may be received or realized
in foreign currencies, the Fund will be required to compute and distribute its
income in U.S. dollars. Therefore, if the value of a currency relative to the
U.S. dollar declines after the Fund's income has been earned in that currency,
translated into U.S. dollars and declared as a dividend, but before payment of
the dividend, the Fund could be required to liquidate portfolio securities to
pay the dividend. Similarly, if the value of a currency relative to the U.S.
dollar declines between the time the Fund accrues expenses in U.S. dollars and
the time such expenses are paid, the amount of such currency required to be
converted into U.S. dollars will be greater than the equivalent amount in such
currency of such expenses at the time they were incurred.

LOWER RATED FIXED INCOME SECURITIES
- -----------------------------------

The Fund may invest a portion of its assets in securities rated below
investment grade ("lower rated fixed income securities"), including securities
in the lowest rating categories, and unrated securities determined by Loomis
Sayles to be of comparable quality. Lower rated fixed income securities
generally provide higher yields, but are subject to greater credit and market
risk than higher quality fixed income securities. Lower rated fixed income
securities are considered speculative with respect to the ability of the issuer
to meet principal and interest payments. Achievement of the Fund's investment
objective through investments in lower rated fixed income securities may be more
dependent on Loomis Sayles's credit analysis than is the case with higher
quality bonds. The market for lower rated fixed income securities may be more
severely affected than other financial markets by economic recession or
substantial interest rate increases. The value and liquidity of lower rated
fixed income securities may be diminished by adverse publicity and investor
perceptions. In addition, legislation that limits the tax benefits to issuers
or holders of taxable lower rated fixed income securities or that limits the
ability of certain categories of financial institutions to invest in these
securities may adversely affect their market value. The secondary market for
lower rated fixed income securities may be less liquid than the secondary market
for higher rated fixed income securities. This lack of liquidity at certain
times may affect the values of these securities and may make the valuation and
sale of these securities by the Fund more difficult. Certain lower rated fixed
income securities do not pay interest on a current basis. However, the Fund
will accrue and distribute this interest on a current basis, and may be required
to sell securities at times when Loomis Sayles would not otherwise deem it
advisable to do so in order to generate cash for distributions. Securities of
below investment grade quality are commonly referred to as "junk bonds."
Securities in the lowest rating categories may be in poor standing or in
default. Investment grade fixed income securities may share some of the
characteristics of lower rated fixed income securities described above.

THE FUND'S INVESTMENT ADVISER

The Fund's investment adviser is Loomis Sayles, One Financial Center,
Boston, Massachusetts 02111. Founded in 1926, Loomis Sayles is one of the
country's oldest and largest investment firms. Loomis Sayles's sole general
partner is indirectly owned by New England Investment Companies, L.P., a
publicly traded limited partnership whose sole

-9-
<PAGE>

general partner is indirectly owned by Metropolitan Life Insurance Company.

In addition to selecting and reviewing the Fund's investments, Loomis
Sayles provides executive and other personnel for the management of the Fund.
The Board of Trustees supervises Loomis Sayles's conduct of the affairs of the
Fund.

The portfolio manager for the Fund since its inception has been Daniel J.
Fuss, who has been with Loomis Sayles since 1976 and is head of the Fixed Income
Management Group. Mr. Fuss is an Executive Vice President of Loomis Sayles.

FUND EXPENSES

The Fund pays Loomis Sayles a monthly investment advisory fee. This fee is
paid at the annual rate of 0.40% of the Fund's average weekly net assets.

In addition to the investment advisory fee, the Fund pays all expenses not
expressly assumed by Loomis Sayles, including taxes, brokerage commissions, fees
of the Fund's custodian, independent accountants and legal counsel and fees of
the Trustees who are not directors, officers or employees of Loomis Sayles or
its affiliated companies.

Loomis Sayles has voluntarily undertaken for an indefinite period to waive
its fees and, to the extent necessary, to bear other Fund expenses in order to
limit the Fund's total operating expenses to .55% of average annual net assets.

PORTFOLIO TRANSACTIONS

Loomis Sayles selects brokers and dealers to execute portfolio transactions
for the Fund. Portfolio turnover considerations will not limit Loomis Sayles's
investment discretion in managing the Fund's assets. The Fund anticipates that
its portfolio turnover rates will vary significantly from time to time depending
on the volatility of economic and market conditions. High portfolio turnover
may result in higher costs such as higher brokerage commissions and higher
levels of taxable gains. Portfolio turnover rates for the life of the Fund are
set forth above under the heading "Prior Performance." See "Dividends, Capital
Gain Distributions and Taxes" for information on the tax consequences of
investing in the Fund.

HOW TO PURCHASE SHARES

You may make an initial purchase of shares of the Fund by submitting a
completed application form and payment to Loomis Sayles.

The minimum initial investment in the Fund is $3,000,000. Subsequent
investments must be at least $50,000. The Trust reserves the right to waive
these minimums in its sole discretion.

Shares of the Fund may be purchased by exchange of (i) cash, (ii)
securities on deposit with a custodian acceptable to Loomis Sayles or (iii) a
combination of such securities and cash. Purchase of shares of the Fund in
exchange for securities is subject in each case to the determination by Loomis
Sayles that the securities to be exchanged are acceptable for purchase by the
Fund. Securities accepted by Loomis Sayles in exchange for Fund shares will be
valued in the same manner as the Fund's assets, as described below, as of the
time of the Fund's next determination of net asset value after such acceptance.
All dividends and subscription or other rights which are reflected in the market
price of accepted securities at the time of valuation become the property of the
Fund and must be delivered to the Fund upon receipt by the investor from the
issuer. A gain or loss for federal income tax purposes would be realized upon
the exchange by an investor that is subject to federal income taxation,
depending upon the investor's basis in the securities tendered. A shareholder
who wishes to purchase shares by exchanging securities should obtain
instructions by calling (617) 482-2450.

-10-
<PAGE>

Loomis Sayles will not approve the acceptance of securities in exchange for
shares of the Fund unless (1) Loomis Sayles, in its sole discretion, believes
the securities are appropriate investments for the Fund; (2) the investor
represents and agrees that all securities offered to the Fund can be resold by
the Fund without restriction under the 1933 Act or otherwise; and (3) the
securities are eligible to be acquired under the Fund's investment policies and
restrictions. No investor owning 5% or more of the Fund's shares may purchase
additional Fund shares by the exchange of securities.

Upon acceptance of your order, the Trust opens an account for you, applies
the payment to the purchase of full and fractional Fund shares and mails a
statement of the account confirming the transaction. After an account has been
established, you may send subsequent investments at any time.

The Trust reserves the right to reject any purchase order for any reason
which the Trust in its sole discretion deems appropriate. Although the Trust
does not anticipate that it will do so, the Trust reserves the right to suspend
or change the terms of the offering of its shares.

The price you pay will be the per share net asset value next calculated
after a proper investment order is received by the Trust. Shares of the Fund
are sold without any sales charge. The net asset value of the Fund's shares is
calculated by dividing the Fund's net assets by the number of shares
outstanding. Net asset value is calculated at least weekly and as of the close
of the New York Stock Exchange (the "Exchange") on each day on which an order
for purchase or redemption of Fund shares is received and on which the Exchange
is open for unrestricted trading. Portfolio securities are valued at their
market value as more fully described in the Statement of Additional Information.

HOW TO REDEEM SHARES

You can redeem your shares by sending a written request to the Trust.

The written request must include the name of the Fund, your account number,
the exact name(s) in which your shares are registered, and the number of shares
or the dollar amount to be redeemed. All owners of the shares must sign the
written request in the exact names in which the shares are registered and should
indicate any special capacity in which they are signing (such as trustee or
custodian or on behalf of a partnership, corporation or other entity).

The redemption price will be the net asset value per share next determined
after the written redemption request is received by the Trust in proper form.
The Trust usually requires additional documentation for the sale of shares by a
corporation, partnership, agent or fiduciary, or a surviving joint owner.
Contact the Trust by calling (617)482-2450 for details.

Further, if (1) you are redeeming shares worth more than $50,000, (2) you
are requesting that the proceeds be sent to someone other than yourself or be
sent to an address other than your address as it appears in the Trust's records,
or (3) the account registration has changed within the last 30 days, you must
have your signature guaranteed by an eligible guarantor. Eligible guarantors
include commercial banks, trust companies, savings associations, credit unions
and brokerage firms that are members of domestic securities exchanges. Before
submitting the redemption request, you should verify with the guarantor
institution that it is an eligible guarantor. Signature guaranties by notaries
public are not acceptable.

Proceeds resulting from a written redemption request will normally be
mailed to you within seven days after receipt of your request in good order. If
you purchased your shares by check and your check was deposited less than
fifteen days prior to the redemption request, the Trust may withhold redemption
proceeds until your check has cleared.

Redemption proceeds may be made in money or in kind, or partly in money and
partly in kind, as determined by the Trust.

The Fund may suspend the right of redemption and may postpone payment for
more than seven days when the Exchange is closed for other than weekends or
holidays, or if permitted by the rules of the SEC when trading on the Exchange
is restricted or during an emergency which makes it impracticable for the Fund
to dispose of its securities or to determine fairly the value of its net assets,
or during any other period permitted by the SEC for the protection of investors.

OTHER INFORMATION

The Trustees may, without shareholder approval, divide the Trust's shares
of beneficial interest into multiple series. The Trust is currently divided
into nine series, including the Fund, the other publicly-offered funds listed on
the cover of this Prospectus, and two other funds, the Loomis Sayles Convertible
Bond Fund and Loomis Sayles Mortgage Securities Fund, shares of which are not
presently being publicly offered.

-11-
<PAGE>

The Fund's investment performance may from time to time be included in
advertisements about the Fund.

The Fund's yield will be computed by dividing the Fund's net investment
income for a recent 30-day period by the maximum offering price (reduced by any
undeclared earned income expected to be paid shortly as a dividend) on the last
trading day of that period.

Total return for the fund is measured by comparing the value of an
investment in the fund at the beginning of the relevant period to the redemption
value of the investment in the fund at the end of the period (assuming immediate
reinvestment of any dividends or capital gain distributions).

All data are based on the Fund's past investment results and do not predict
future performance. Investment performance, which will vary, is based on many
factors, including market conditions, the composition of the Fund's portfolio
and the Fund's operating expenses. Investment performance also often reflects
the risks associated with the Fund's investment objectives and policies. These
factors should be considered when comparing the Fund's investment results with
those of other mutual funds and other investment vehicles. Quotations of
investment performance for any period when an expense limitation was in effect
will be greater than if the limitation had not been in effect.

DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAXES

Because the Fund is designed primarily for tax-exempt investors such as
pension plans, endowments and foundations, the Fund is not managed with a view
to reducing taxes. The Fund pays any net investment income to shareholders as
monthly dividends. The Fund also distributes all of its net realized capital
gains after applying any capital loss carryovers. Any capital gain
distributions are normally made annually in December, but may, to the extent
permitted by law, be made more frequently as deemed advisable by the Trustees.
The Trustees may change the frequency with which the Fund declares or pays
dividends.

Your dividends and capital gain distributions will automatically be
reinvested in additional shares of the Fund on the payment date unless you have
elected to receive cash. Dividends and capital gain distributions will be taxed
as described below whether received in cash or additional shares.

The Fund intends to qualify as a "regulated investment company" under the
Internal Revenue Code of 1986, as amended. As such, so long as the Fund
distributes substantially all its net investment income and net realized capital
gains to its shareholders on a current basis, the Fund itself does not pay any
federal income or excise tax. The Fund intends to make sufficient distributions
to be relieved of federal taxes.

Income dividends and short-term capital gain distributions are treated as
ordinary income to you whether distributed in cash or additional shares. Long-
term capital gain distributions are treated as long-term capital gains to you
whether distributed in cash or additional shares and regardless of how long you
have held your shares. However, any loss recognized by you on the taxable
disposition of shares held for six months or less will be treated as a long-term
capital loss to the extent of any capital gain distribution you received with
respect to the shares.

-12-
<PAGE>

you have underreported income in the past, or (3) if you fail to certify to the
Fund that you are not subject to such withholding.

In January of each year, the Trust will send you a statement showing the
federal tax status of dividends and distributions paid to you during the
preceding year.

The foregoing summarizes certain U.S. federal income tax consequences of
investing in the Fund. Before investing, you should consult your own tax adviser
for more information concerning the federal, state and local tax consequences of
investing in, redeeming or exchanging Fund shares.

TRANSFER AND DIVIDEND INVESTMENT ADVISER
PAYING AGENT AND Loomis, Sayles & Company, L.P.
CUSTODIAN OF ASSETS One Financial Center
State Street Bank and Trust Company Boston, Massachusetts 02111
Boston, Massachusetts 02102

A-1
<PAGE>

APPENDIX A

DESCRIPTION OF BOND RATINGS ASSIGNED BY
STANDARD & POOR'S AND
MOODY'S INVESTORS SERVICE, INC.

STANDARD & POOR'S
- -----------------

AAA

This is the highest rating assigned by Standard & Poor's to a debt obligation
and indicates an extremely strong capacity to pay interest and repay
principal.

Bonds rated AA also qualify as high quality debt obligations. Capacity to pay
interest and repay principal is very strong, and in the majority of instances
they differ from AAA issues only in small degree.

Bonds rated A have a strong capacity to pay interest and repay principal,
although they are somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions.

BBB

Bonds rated BBB are regarded as having an adequate capacity to pay interest and
repay principal. Whereas they normally exhibit adequate protection parameters,
adverse economic conditions or changing circumstances are more likely to lead to
a weakened capacity to repay principal and pay interest for bonds in this
category than for bonds in higher rated categories.

BB, B, CCC, CC

Bonds rated BB, B, CCC and CC are regarded, on balance, as predominantly
speculative with respect to capacity to pay interest and repay principal in
accordance with the terms of the obligation. BB indicates the lowest degree of
speculation and CC the highest degree of speculation. While such bonds will
likely have some quality and protective characteristics, these are outweighed by
large uncertainties or major risk exposures to adverse conditions.

The rating C is reserved for income bonds on which no interest is being paid.

Bonds rated D are in default, and payment of interest and/or repayment of
principal is in arrears.

Plus (+) or Minus (-): The ratings from "AA" to "B" may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.

A-2
<PAGE>

MOODY'S INVESTORS SERVICE, INC.
- -------------------------------

Aaa

Bonds that are rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as "gilt edge."
Interest payments are protected by a large, or by an exceptionally stable,
margin, and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.

Bonds that are rated Aa are judged to be high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there are other elements present that make the
long-term risks appear somewhat larger than in Aaa securities.

Bonds that are rated A possess many favorable investment attributes and are to
be considered as upper medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present that
suggest a susceptibility to impairment sometime in the future.

Baa

Bonds that are rated Baa are considered as medium grade obligations; i.e., they
are neither highly protected nor poorly secured. Interest payments and
principal security appear adequate for the present, but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and, in
fact, have speculative characteristics as well.

Bonds which are rated Ba are judged to have speculative elements; their future
cannot be considered as well assured. Often, the protection of interest and
principal payments may be very moderate, and thereby not well safeguarded during
both good and bad times over the future. Uncertainty of position characterizes
bonds in this class.

Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.

Caa

Bonds which are rated Caa are of poor standing. Such issues may be in default
or there may be present elements of danger with respect to principal or
interest.

Bonds which are rated Ca represent obligations which are speculative in a high
degree. Such issues are often in default or have other marked shortcomings.

A-3
<PAGE>

Bonds which are rated C are the lowest rated class of bonds, and issues so rated
can be regarded as having extremely poor prospects of ever attaining any real
investment standing.

Should no rating be assigned by Moody's, the reason may be one of the following:

1. An application for rating was not received or accepted.

2. The issue or issuer belongs to a group of securities that are not
rated as a matter of policy.

3. There is lack of essential data pertaining to the issue or issuer.

4. The issue was privately placed in which case the rating is not
published in Moody's publications.

Suspension or withdrawal may occur if new and material circumstances arise, the
effects of which preclude satisfactory analysis; if there is no longer available
reasonable up-to-date data to permit a judgment to be formed; if a bond is
called for redemption; or for other reasons.

Note: Those bonds in the Aa, A, Baa, Ba and B groups which Moody's believes
possess the strongest investment attributes are designated by the symbols Aa1,
A1, Baa1, Ba1 and B1, and those with the weakest investment attributes are
designated by the symbols Aa3, A3, Baa3, Ba3 and B3.

A-4
<PAGE>

LOOMIS SAYLES INVESTMENT TRUST

LOOMIS SAYLES FIXED INCOME FUND

ONE FINANCIAL CENTER
BOSTON, MASSACHUSETTS 02111
(617) 482-2450

PROSPECTUS

MARCH 7, 1997

The Loomis Sayles Investment Trust (the "Trust") is a group of nine mutual
funds including the Loomis Sayles Fixed Income Fund (the "Fund"). The other
series which are publicly offered by the Trust and are described in separate
prospectuses are:

Loomis Sayles California Tax-Free Income Fund
Loomis Sayles Core Fixed Income Fund
Loomis Sayles Core Growth Fund
Loomis Sayles High Yield Fixed Income Fund
Loomis Sayles Intermediate Duration Fixed Income Fund
Loomis Sayles Investment Grade Fixed Income Fund

<PAGE>

TABLE OF CONTENTS

<TABLE>
<S> <C>
SUMMARY OF EXPENSES....................................................... -3-

PRIOR PERFORMANCE......................................................... -4-

THE TRUST................................................................. -5-

INVESTMENT OBJECTIVE AND POLICIES......................................... -5-

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS............................. -6-

THE FUND'S INVESTMENT ADVISER............................................. -10-

FUND EXPENSES............................................................. -10-

PORTFOLIO TRANSACTIONS.................................................... -10-

HOW TO PURCHASE SHARES.................................................... -10-

HOW TO REDEEM SHARES...................................................... -11-

OTHER INFORMATION......................................................... -12-

DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAXES........................... -12-
</TABLE>

-2-
<PAGE>

SUMMARY OF EXPENSES

<TABLE>
<S> <C>
Shareholder Transaction Expenses:
Maximum Sales Load Imposed on
Purchases (as a percentage of offering price) none
Maximum Sales Load Imposed on
Reinvested Dividends (as a percentage of
offering price) none
Deferred Sales Load (as a percentage of
original purchase price or redemption
proceeds, as applicable) none
Redemption Fees (as a percentage of
amount redeemed) none
Exchange Fees none

Annual Operating Expenses
(as a percentage of average net assets):
Management Fees .50%
12b-1 Fees none
Other Operating Expenses .12%

Total Operating Expenses .62%

Example
You would pay the following
expenses on a $1,000 investment
assuming a 5% annual return
(with or without a redemption at
the end of each time period):

One Year $ 6
Three Years $20
Five Years $35
Ten Years $77
</TABLE>

-3-
<PAGE>

PRIOR PERFORMANCE

(FOR A SHARE OF THE FUND OUTSTANDING THROUGHOUT THE INDICATED PERIODS)

The information presented below relates to periods prior to the
effectiveness of the Fund's registration statement under the Securities Act of
1933, as amended (the "1933 Act"). The information presented below is included
in financial statements of the Fund that have been audited by Coopers & Lybrand
L.L.P., independent accountants, whose report thereon appears in the Fund's 1996
Annual Report. The following information should be read in conjunction with the
"Report of Independent Accountants," financial statements and notes thereto
contained in the Fund's 1996 Annual Report, which are incorporated by reference
into this Prospectus and the Statement of Additional Information. The Fund is
managed in a manner that is in all material respects similar to the manner in
which it was managed prior to the effectiveness of its registration statement
under the 1933 Act.

<TABLE>
<CAPTION>
Year Ended January 17* through
December 31, December 31,
1996 1995
---- ----
<S> <C> <C>
Net asset value, beginning of period......................... $12.08 $10.00

Income from investment operations -
Net investment income....................................... 0.91 0.53
Net realized and unrealized gain on investments............. 0.27 2.21
------- -------
Total from investment operations........................... 1.18 2.74
------- -------

Less distributions -
Distributions from net investment income.................... (0.90) (0.52)
------- -------
Distributions from net realized capital gains............... (0.28) (0.14)
------- -------
Total distributions........................................ (1.18) (0.66)
------- -------
Net asset value, end of period............................... $12.08 $12.08
------- -------
Total return (%)............................................. 9.80 27.40
------- -------
Net assets, end of period (000).............................. $91,746 $58,332
------- -------
Ratio of operating expenses to average net assets (%)........ 0.62 0.75**
------- -------
Ratio of net investment income to average net assets (%)..... 7.97 8.15**
------- -------
Portfolio turnover rate (%).................................. 90.4 76.0
------- -------
Without giving effect to the voluntary expense limitations:
The ratio of operating expenses to average net assets
would have been (%)......................................... 0.62 0.83**
------- -------
The net investment income per share would have been......... $0.91 $0.52
</TABLE>

* Commencement of operations.
** Annualized.

-4-
<PAGE>

THE TRUST

The Fund is a series of the Trust. The Trust is a diversified open-end
management investment company which was organized as a Massachusetts business
trust on December 23, 1993. The Trust is authorized to issue an unlimited number
of full and fractional shares of beneficial interest in multiple series. Shares
are freely transferable and entitle shareholders to receive dividends as
determined by the Trust's board of trustees (the "Trustees") and to cast a vote
for each share held (with a fractional vote for each fractional share held) at
shareholder meetings. The Trust does not generally hold shareholder meetings and
will do so only when required by law. Shareholders may call meetings to consider
removal of the Trustees.

INVESTMENT OBJECTIVE AND POLICIES

The Fund's investment objective is high total investment return through a
combination of current income and capital appreciation.

The Fund seeks to attain its objective by normally investing substantially
all of its assets in a broad range of debt securities, although up to 20% of its
assets may be invested in preferred stocks. These debt securities may include
corporate securities, securities issued or guaranteed by the U.S. Government,
its authorities, agencies or instrumentalities or certificates representing
undivided interests in the interest or principal of U.S. Treasury securities
("U.S. Government Securities"), zero coupon securities, collateralized mortgage
securities, convertible bonds and when-issued securities, which are described
herein (together with their related risks) under "More Information About the
Fund's Investments." Under normal market conditions, the Fund will invest at
least 65% of its total assets in fixed income securities. The Fund may invest
any portion of its assets in securities of Canadian issuers, and a limited
portion of its assets in securities of other foreign issuers. See "More
Information About the Fund's Investments; Foreign Securities."

The Fund may invest up to 35% of its assets in securities of below
investment grade quality, which are securities rated below BBB by Standard &
Poor's ("S&P") and below Baa by Moody's Investors Service, Inc. ("Moody's"), and
in unrated securities determined by Loomis Sayles to be of comparable quality.
See "More Information About the Fund's Investments; Lower Rated Fixed Income
Securities." The Fund may continue to hold securities that are downgraded in
quality subsequent to their purchase if, in the opinion of Loomis Sayles, it
would be advantageous to do so.

The percentages of the Fund's net assets invested during the fiscal year
ended December 31, 1996 in securities assigned to the various rating categories
by S&P and Moody's on a dollar-weighted basis were approximately as follows:
"AAA"/ "Aaa," 7.0%; "AA"/"Aa," 13.8%; "A"/"A," 7.9%; "BBB"/"Baa," 36.5%;
"BB"/"Ba," 11.1%; "B"/"B," 15.6%; and below "B," 4.0%. The percentage of the
Fund's net assets invested during such fiscal year in unrated debt securities as
a group was approximately 1.8%. The percentages of the Fund's net assets
invested during such fiscal year in such unrated securities (categorized by
comparable rating category) were approximately as follows: "AAA"/"Aaa," 0%;
"AA"/"Aa," 0%; "A"/"A," 0%; "BBB"/"Baa," 0%; "BB"/"Ba," 0%; "B"/"B," 1.8%; and
below "B," 0%.

-5-
<PAGE>

Although authorized to invest in restricted securities, the Fund, as a
matter of nonfundamental operating policy, currently does not intend to invest
in such securities, other than Rule 144A securities. Rule 144A securities are
privately offered securities that can be resold only to certain qualified
institutional buyers. Rule 144A securities are treated as illiquid, unless
Loomis Sayles has determined, under guidelines established by the Trustees, that
the particular issue of Rule 144A securities is liquid.

The investment objective of the Fund is "fundamental" and cannot be changed
without a majority vote of the Fund's shareholders. All investment policies
other than those that are identified as "fundamental" may be changed by the
Trustees without a vote of the Fund's shareholders.

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS

FIXED INCOME SECURITIES
- -----------------------

The Fund may invest in fixed income securities of any maturity. Fixed
income securities pay a specified rate of interest or dividends. Fixed income
securities include securities issued by federal, state, local and foreign
governments and related agencies, and by a wide range of foreign and domestic
private issuers. The Fund may also invest in other debt securities that pay a
rate of interest or dividends that is adjusted periodically by reference to some
specified index or market rate. Such securities are included within the
definition of fixed income securities as used in this Prospectus other than for
purposes of determining compliance with the Fund's investment policy of
investing, under normal market conditions, at least 65% of its total assets in
fixed income securities. Because interest rates vary, it is impossible to
predict the income of the Fund for any particular period.

U.S. GOVERNMENT SECURITIES
- --------------------------

Although U.S. Government Securities generally do not involve the credit
risks associated with other types of fixed income securities, the market values
of U.S. Government Securities will fluctuate as interest rates change. Thus, for
example, the value of an investment in U.S. Government Securities may fall
during times of rising interest rates. Yields on U.S. Government Securities
tend to be lower than those of other fixed income securities of comparable
maturities.

-6-
<PAGE>

fixed income securities. See "Collateralized Mortgage obligations" below for
additional information regarding the risks associated with mortgage-backed
securities.

ZERO COUPON SECURITIES
- ----------------------

COLLATERALIZED MORTGAGE OBLIGATIONS
- -----------------------------------

The Fund may invest in collateralized mortgage obligations ("CMOs"). A CMO
is a limited recourse security backed by a portfolio of mortgages or, more
typically, by mortgage-backed securities held under an indenture. CMOs may be
issued by instrumentalities of the U.S. Government or by non-governmental
entities. The issuer's obligation to make interest and principal payments is
derived from and secured by the underlying portfolio of mortgages or mortgage-
backed securities. CMOs are issued with a number of classes or series which
have different maturities and which may represent interests in some or all of
the interest or principal payments on the underlying collateral or a combination
thereof. CMOs of different classes or series are generally retired in sequence
as the underlying mortgage loans in the mortgage pool are repaid. In the event
of sufficient early prepayments on such mortgages, the class or series of CMOs
first to mature generally will be retired prior to its maturity. As with other
mortgage-backed securities, the early retirement of a particular class or series
of CMOs held by the Fund could involve the loss of any premium the Fund paid
when it acquired the investment and could result in the Fund's reinvesting the
proceeds at a lower interest rate than the interest rate paid by the retired
CMO. Because of the early retirement feature, CMOs may be more volatile than
many other fixed income investments. In addition, slower than anticipated
prepayments on the underlying mortgages can extend the effective maturities of
CMOs, subjecting them to a greater risk of decline in market value in response
to rising interest rates than traditional debt securities.

COMMERCIAL MORTGAGE-BACKED SECURITIES
- -------------------------------------

-7-
<PAGE>

residential properties. Commercial mortgage loans also tend to have shorter
maturities than residential mortgage loans, and may not be fully amortizing,
meaning that they have a significant principal balance, or "balloon" payment,
due on maturity. Assets underlying commercial mortgage-backed securities may
relate only to a few properties or a single property. The risk involved in
single property financings is highly concentrated. In addition, commercial
properties, particularly industrial and warehouse properties, are subject to
environmental risks and the burdens and costs of compliance with environmental
laws and regulations. At the same time, commercial mortgage-backed securities
may have a lower prepayment risk than residential mortgage-backed securities,
because commercial mortgage loans generally prohibit or impose penalties on
prepayments of principal. In addition, commercial mortgage-backed securities
often are structured with some form of credit enhancement to protect against
potential losses on the underlying mortgage loans.

CONVERTIBLE SECURITIES
- ----------------------

Convertible securities include corporate bonds, notes or preferred stocks
of U.S. or foreign issuers that can be converted into (that is, exchanged for)
common stocks or other equity securities at a stated price or rate. Convertible
securities also include other securities, such as warrants, that provide an
opportunity for equity participation. Because convertible securities can be
converted into equity securities, their value will normally vary in some
proportion with those of the underlying equity securities. Convertible
securities usually provide a higher yield than the underlying equity security,
however, so that when the price of the underlying equity security falls, the
decline in the price of the convertible security may sometimes be less
substantial than that of the underlying equity security. Due to the conversion
feature, convertible securities generally yield less than nonconvertible
securities of similar credit quality and maturity. The Fund's investments in
convertible securities may at times include securities that have a mandatory
conversion feature, pursuant to which the securities convert automatically into
common stock at a specified date and conversion ratio, or that are convertible
at the option of the issuer. Because conversion of such securities is not at
the option of the holder, the Fund may be required to convert the security into
the underlying common stock even at times when the value of the underlying
common stock has declined substantially.

WHEN-ISSUED SECURITIES
- ----------------------

LOWER RATED FIXED INCOME SECURITIES
- -----------------------------------

-8-
<PAGE>

economic recession or substantial interest rate increases. The value and
liquidity of lower rated fixed income securities may be diminished by adverse
publicity and investor perceptions. In addition, legislation that limits the tax
benefits to issuers or holders of taxable lower rated fixed income securities or
that limits the ability of certain categories of financial institutions to
invest in these securities may adversely affect their market value. The
secondary market for lower rated fixed income securities may be less liquid than
the secondary market for higher rated fixed income securities. This lack of
liquidity at certain times may affect the values of these securities and may
make the valuation and sale of these securities by the Fund more difficult.
Certain lower rated fixed income securities do not pay interest on a current
basis. However, the Fund will accrue and distribute this interest on a current
basis, and may be required to sell securities at times when Loomis Sayles would
not otherwise deem it advisable to do so in order to generate cash for
distributions. Securities of below investment grade quality are commonly
referred to as "junk bonds." Securities in the lowest rating categories may be
in poor standing or in default. Investment grade fixed income securities may
share some of the characteristics of lower rated fixed income securities
described above.

FOREIGN SECURITIES
- ------------------

Foreign securities may present risks not associated with investments in
comparable securities of U.S. issuers. There may be less information publicly
available about a foreign corporate or governmental issuer than about a U.S.
issuer, and foreign issuers are not generally subject to accounting, auditing
and financial reporting standards and practices comparable to those in the
United States. The securities of some foreign issuers are less liquid and at
times more volatile than securities of comparable U.S. issuers. Foreign
brokerage commissions and securities custody costs are often higher than in the
United States. With respect to certain foreign countries, there is a
possibility of governmental expropriation of assets, confiscatory taxation,
political or financial instability and diplomatic developments that could affect
the value of investments in those countries. The Fund's receipt of interest on
foreign government securities may depend on the availability of tax or other
revenues to satisfy the issuer's obligations. In addition, the remedies of the
Fund may be extremely limited if a foreign issuer defaults on its obligations.

-9-
<PAGE>

time the Fund accrues expenses in U.S. dollars and the time such expenses are
paid, the amount of such currency required to be converted into U.S. dollars
will be greater than the equivalent amount in such currency of such expenses at
the time they were incurred.

THE FUND'S INVESTMENT ADVISER

FUND EXPENSES

The Fund pays Loomis Sayles a monthly investment advisory fee. This fee is
paid at the annual rate of 0.50% of the Fund's average weekly net assets.

PORTFOLIO TRANSACTIONS

HOW TO PURCHASE SHARES

You may make an initial purchase of shares of the Fund by submitting a
completed application form and payment to Loomis Sayles.

The minimum initial investment in the Fund is $3,000,000. Subsequent
investments must be at least $50,000. The Trust reserves the right to waive
these minimums in its sole discretion.

-10-
<PAGE>

Loomis Sayles will not approve the acceptance of securities in exchange for
shares of the Fund unless (1) Loomis Sayles, in its sole discretion, believes
the securities are appropriate investments for the Fund; (2) the investor
represents and agrees that all securities offered to the Fund can be resold by
the Fund without restriction under the 1933 act or otherwise; and (3) the
securities are eligible to be acquired under the Fund's investment policies and
restrictions. No investor owning 5% or more of the Fund's shares may purchase
additional Fund shares by the exchange of securities.

HOW TO REDEEM SHARES

You can redeem your shares by sending a written request to the Trust.

Further, if (1) you are redeeming shares worth more than $50,000, (2) you
are requesting that the proceeds be sent to someone other than yourself or be
sent to any address other than your address as it appears in the Trust's
records, or (3) the account registration has changed within the last 30 days,
you must have your signature guaranteed by an eligible guarantor. Eligible
guarantors include commercial banks, trust companies, savings associations,
credit unions and brokerage firms that are members of domestic securities
exchanges. Before submitting the redemption request, you should verify with the
guarantor institution that it is an eligible guarantor. Signature guaranties by
notaries public are not acceptable.

-11-
<PAGE>

Redemption proceeds may be made in money or in kind, or partly in money and
partly in kind, as determined by the Trust.

OTHER INFORMATION

The Trustees may, without shareholder approval, divide the Trust's shares
of beneficial interest into multiple series. The Trust is currently divided into
nine series, including the Fund, the other publicly-offered funds listed on the
cover of this Prospectus, and two other funds, THE Loomis Sayles Convertible
Bond Fund and Loomis Sayles Mortgage Securities Fund, shares of which are not
presently being publicly offered.

The Fund's investment performance may from time to time be included in
advertisements about the Fund.

Total return for the Fund is measured by comparing the value of an
Investment in the Fund at the beginning of the relevant period to the redemption
value of the investment in the Fund at the end of the period (assuming immediate
reinvestment of any dividends or capital gain distributions).

All data are based on the Fund's past investment results and do not predict
future performance. Investment performance, which will vary, is based on many
factors, including market conditions, the composition of the fund's portfolio
and the fund's operating expenses. Investment performance also often reflects
the risks associated with the Fund's investment objectives and policies. These
factors should be considered when comparing the Fund's investment results with
those of other mutual funds and other investment vehicles. Quotations of
investment performance for any period when an expense limitation was in effect
will be greater than if the limitation had not been in effect.

DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAXES

Because the Fund is designed primarily for tax-exempt investors such as
pension plans, endowments and foundations, the Fund is not managed with a view
to reducing taxes. The Fund pays any net investment income to shareholders as
dividends annually in December. The Fund also distributes all of its net
realized capital gains after applying any capital loss carryovers. Any capital
gain distributions are normally made annually in December, but may, to the
extent permitted by law, be made more frequently as deemed advisable by the
Trustees. The Trustees may change the frequency with which the Fund declares or
pays dividends.

-12-
<PAGE>

The Fund is required to withhold 31% of redemption proceeds, income
dividends and capital gain distributions it pays to you (1) if you do not
provide a correct, certified taxpayer identification number, (2) if the Fund is
notified that you have underreported income in the past, or (3) if you fail to
certify to the Fund that you are not subject to such withholding.

In January of each year, the Trust will send you a statement showing the
federal tax status of dividends and distributions paid to you during the
preceding year.

The foregoing summarizes certain U.S. federal income tax consequences of
investing in the Fund. Before investing, you should consult your own tax
adviser for more information concerning the federal, state and local tax
consequences of investing in, redeeming or exchanging Fund shares.

-13-
<PAGE>

APPENDIX A

DESCRIPTION OF BOND RATINGS ASSIGNED BY
STANDARD & POOR'S AND
MOODY'S INVESTORS SERVICE, INC.

STANDARD & POOR'S
- -----------------

AAA

This is the highest rating assigned by Standard & Poor's to a debt obligation
and indicates an extremely strong capacity to pay interest and repay principal.

Bonds rated A have a strong capacity to pay interest and repay principal,
although they are somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions.

BBB

BB, B, CCC, CC

The rating C is reserved for income bonds on which no interest is being paid.

Bonds rated D are in default, and payment of interest and/or repayment of
principal is in arrears.

Plus (+) or Minus (-): The ratings from "AA" to "B" may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.

A-1
<PAGE>

MOODY'S INVESTORS SERVICE, INC.
- -------------------------------

Aaa

Baa

Caa

Bonds which are rated Caa are of poor standing. Such issues may be in default
or there may be present elements of danger with respect to principal or
interest.

Bonds which are rated Ca represent obligations which are speculative in a high
degree. Such issues are often in default or have other marked shortcomings.

A-2
<PAGE>

Bonds which are rated C are the lowest rated class of bonds, and issues so rated
can be regarded as having extremely poor prospects of ever attaining any real
investment standing.

Should no rating be assigned by Moody's, the reason may be one of the following:

1. An application for rating was not received or accepted.

2. The issue or issuer belongs to a group of securities that are not
rated as a matter of policy.

3. There is lack of essential data pertaining to the issue or issuer.

4. The issue was privately placed in which case the rating is not
published in Moody's publications.

A-3
<PAGE>

LOOMIS SAYLES INVESTMENT TRUST

LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND

ONE FINANCIAL CENTER
BOSTON, MASSACHUSETTS 02111
(617) 482-2450

PROSPECTUS

MARCH 7, 1997

The Loomis Sayles Investment Trust (the "Trust") is a group of nine mutual
funds including the Loomis Sayles California Tax-Free Income Fund (the "Fund").
The other series which are publicly offered by the Trust and are described in
separate prospectuses are:

Loomis Sayles Core Fixed Income Fund
Loomis Sayles Core Growth Fund
Loomis Sayles Fixed Income Fund
Loomis Sayles High Yield Fixed Income Fund
Loomis Sayles Intermediate Duration Fixed Income Fund
Loomis Sayles Investment Grade Fixed Income Fund

Except for the Fund, the funds are designed specifically for tax-exempt
investors such as pension plans, endowments and foundations, although other
institutions and high net-worth individuals are eligible to invest. Each of the
funds is separately managed and has its own investment objective and policies.
Loomis, Sayles & Company, L.P. ("Loomis Sayles") is the investment adviser of
each of the funds.

<PAGE>

TABLE OF CONTENTS

<TABLE>
<S> <C>
SUMMARY OF EXPENSES............................................. -3-

PRIOR PERFORMANCE............................................... -4-

THE TRUST....................................................... -5-

INVESTMENT OBJECTIVE AND POLICIES............................... -5-

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS................... -6-

THE FUND'S INVESTMENT ADVISER................................... -8-

FUND EXPENSES................................................... -8-

PORTFOLIO TRANSACTIONS.......................................... -9-

HOW TO PURCHASE SHARES.......................................... -9-

HOW TO REDEEM SHARES............................................-10-

OTHER INFORMATION...............................................-10-

DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAXES.................-11-
</TABLE>

-2-
<PAGE>

SUMMARY OF EXPENSES

<TABLE>
<S> <C>
Shareholder Transaction Expenses:
Maximum Sales Load Imposed on
Purchases (as a percentage of offering price) none
Maximum Sales Load Imposed on
Reinvested Dividends (as a percentage of
offering price) none
Deferred Sales Load (as a percentage of original
purchase price or redemption
proceeds as applicable) none
Redemption Fees (as a percentage of amount
redeemed) none
Exchange Fees none

Annual Operating Expenses
(as a percentage of average net assets):
Management Fees (after expense
limitation)/1/ 0%
12b-1 Fees none
Other Operating Expenses (after expense
limitation)/1/ .65%
Total Operating Expenses (after expense
limitation)/1/ .65%

Example
You would pay the following
expenses on a $1,000 investment
assuming a 5% annual return
(with or without a redemption at
the end of each time period):

One Year $7
Three Years $21
Five Years $36
Ten Years $81
</TABLE>

- --------------------------

/1/ Loomis Sayles has voluntarily undertaken for an indefinite period to limit
the Fund's total operating expenses to the percentage of average net assets
shown above. In the absence of the voluntary expense limitation, Management
Fees, Other Operating Expenses and Total Operating Expenses for the fiscal year
ended December 31, 1996 would have been .50%, .76% and 1.26%, respectively.

-3-
<PAGE>

PRIOR PERFORMANCE

(FOR A SHARE OF THE FUND OUTSTANDING THROUGHOUT THE INDICATED PERIODS)

The information presented below relates to periods prior to the
effectiveness of the Fund's registration statement under the Securities Act of
1933, as amended (the "1933 Act"). The information presented below is included
in financial statements of the Fund that have been audited by Coopers & Lybrand
L.L.P., independent accountants, whose report thereon appears in the Fund's 1996
Annual Report. The following information should be read in conjunction with the
"Report of Independent Accountants," financial statements and notes thereto
contained in the Fund's 1996 Annual Report, which are incorporated by reference
into this Prospectus and the Statement of Additional Information. The Fund is
managed in a manner that is in all material respects similar to the manner in
which it was managed prior to the effectiveness of its registration statement
under the 1933 Act.

<TABLE>
<CAPTION>
YEAR ENDED JUNE 1* THROUGH
DECEMBER 31, December 31,
1996 1995
---- ----
<S> <C> <C>
Net asset value, beginning of period....................................... $ 10.23 $ 10.00

Income from investment operations -
Net investment income...................................................... 0.46 0.26

Net realized and unrealized gain on investments............................ (0.04) 0.23

Total from investment operations......................................... 0.42 0.49

Less distributions -
Distributions from net investment income................................... (0.45) (0.26)
Distributions from net realized capital gains.............................. (0.01) 0.00

Total distributions................................................... (0.46) (0.26)
------- -------
Net asset value, end of period............................................. $ 10.19 $ 10.23

Total return (%)........................................................... 4.12 4.90
Net assets, end of period (000)............................................ $13,460 $ 7,880
Ratio of operating expenses to average net assets (%)...................... 0.65 0.65**
Ratio of net investment income to average net assets (%)................... 4.58 5.30**
Portfolio turnover rate (%)................................................ 17.5 18.4
Without giving effect to the voluntary expense limitation:
The ratio of operating expenses to average net assets would have been (%).. 1.26 1.62**
The net investment income per share would have been........................ $ 0.40 $ 0.22
</TABLE>

* Commencement of operations.
**Annualized.

-4-
<PAGE>

THE TRUST

The Fund is a series of the Trust. The Trust is a diversified open-end
management investment company which was organized as a Massachusetts business
trust on December 23, 1993. The Trust is authorized to issue an unlimited number
of full and fractional shares of beneficial interest in multiple series. Shares
are freely transferable and entitle shareholders to receive dividends as
determined by the Trust's board of trustees (the "Trustees") and to cast a vote
for each share held (with a fractional vote for each fractional share held) at
shareholder meetings. The Trust does not generally hold shareholder meetings and
will do so only when required by law. Shareholders may call meetings to consider
removal of the Trustees.

INVESTMENT OBJECTIVE AND POLICIES

The Fund's investment objective is to achieve as high a level of current
income exempt from both federal income tax and California personal income tax as
is consistent with preservation of capital.

The Fund seeks to attain its objective by normally investing substantially
all of its assets in securities the income from which is, in the opinion of the
issuer's counsel at the time of issuance, exempt from both federal income tax
and California personal income tax ("California tax exempt securities"). It is a
fundamental policy of the Fund that, during periods of normal market conditions,
at least 80% of its net assets will be invested in California tax exempt
securities. Normally at least 80% of its assets will be invested in issues rated
A or better by Standard & Poors ("S&P") or Moody's Investors Service, Inc.
("Moody's"). All issues will be rated at least BBB by S&P or Baa by Moody's (or,
if unrated, be of equivalent credit quality as determined by Loomis Sayles) at
the time of purchase. Bonds of BBB or Baa quality have some speculative
characteristics. Changes in economic conditions or other circumstances are more
likely to lead to a weakened capacity of the issuers of such bonds to make
principal and interest payments than is the case with issuers of higher grade
bonds. In the event that the credit rating of a security held by the Fund falls
below investment grade (or, in the case of unrated securities, Loomis Sayles
determines that the quality of such security has deteriorated below investment
grade), the Fund will not be obligated to dispose of such security and may
continue to hold such security, if, in the opinion of Loomis Sayles, such
investment is appropriate in the circumstances.

The Fund may invest up to 20% of its net assets in high quality corporate
obligations, U.S. Government obligations and repurchase agreements. Income from
these investments may be subject to federal income tax and/or California
personal income tax.

The Fund will not "concentrate" its investments. that is, it will not
invest more than 25% of its total assets in any one industry. Although tax-
exempt securities secured by the assets or revenues of governmental entities are
not considered part of any "industry," for this purpose tax-exempt securities
backed only by the assets and revenues of nongovernmental entities are deemed to
represent investments in the industries of such nongovernmental issuers.

Notwithstanding the 25% industry limitation, it is possible that the Fund
may invest more than 25% of its assets in a broader segment of the market for
tax-exempt securities, such as revenue obligations of hospitals and other health
care facilities, housing revenue obligations, or airport revenue obligations.
This would be the case only if Loomis Sayles determined that the yields
available from obligations in a particular segment of the market justified the
additional risks associated with such concentration. Economic, business,
political and other developments may have a general adverse effect on all tax-
exempt securities in a particular market segment. (Examples would include
proposed legislation or pending court decisions affecting the financing of such
projects and market factors affecting the demand for their services or
products).

-5-
<PAGE>

or emergency purposes; and (4) a restriction prohibiting the Fund from
purchasing any illiquid security including a security that is not readily
marketable if, as a result, more than 15% of the Fund's net assets based on
current value would then be invested in such securities. For additional
investment restrictions, see the Statement of Additional Information.

The investment objective of the Fund is "fundamental" and cannot be changed
without a majority vote of the Fund's shareholders. All investment policies
other than those identified as "fundamental" may be changed by the Trustees
without a vote of the Fund's shareholders.

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS

FIXED INCOME SECURITIES
- -----------------------

The Fund may invest in fixed income securities of any maturity. Fixed
income securities pay a specified rate of interest or dividends. The Fund may
also invest in other debt securities that pay a rate of interest or dividends
that is adjusted periodically by reference to some specified index or market
rate. Such securities are included within the definition of fixed income
securities as used in this Prospectus. Because interest rates vary, it is
impossible to predict the income of the Fund for any particular period.

Fixed income securities are subject to credit and market risk. Credit risk
relates to the ability of the issuer to make payments of principal and interest.
Market risk relates to changes in a security's value as a result of changes in
interest rates generally. In general, the values of fixed income securities
increase when prevailing interest rates fall and decrease when interest rates
rise. Generally, the longer the maturity of a fixed income security, the greater
the fluctuations in its value because of market and credit risk.

U.S. GOVERNMENT SECURITIES
- --------------------------

Although U.S. Government Securities generally do not involve the credit
risks associated with other types of fixed income securities, the market values
of U.S. Government Securities will fluctuate as interest rates change. Thus, for
example, the value of an investment in U.S. Government Securities may fall
during times of rising interest rates. Yields on U.S. Government Securities
tend to be lower than those of other fixed income securities of comparable
maturities.

Some U.S. Government Securities, such as Government National Mortgage
Association Certificates, are known as "mortgage-backed" securities,
representing interests in "pools" of mortgage loans secured by residential or
commercial real property. Interest and principal payments on the mortgages
underlying mortgage-backed U.S. Government Securities are passed through to the
holders of the security. If the Fund purchases mortgage-backed securities at a
discount or a premium, the Fund will recognize a gain or loss when the payments
of principal, through prepayment or otherwise, are passed through to the Fund
and, if the payment occurs in a period of falling interest rates, the Fund may
not be able to reinvest the payment at as favorable an interest rate. As a
result of these principal prepayment features, mortgage-backed securities are
generally more volatile investments than many other fixed income securities. In
addition, slower than anticipated prepayments on the underlying mortgages can
extend

-6-
<PAGE>

the effective maturities of mortgage-backed securities, subjecting them to a
greater risk of decline in market value in response to rising interest rates
than traditional debt securities.

COMMERCIAL MORTGAGE-BACKED SECURITIES
- -------------------------------------

Commercial mortgage-backed securities are generally structured similarly to
pass-through securities or to collateralized mortgage obligations although other
structures are possible. They may pay fixed or adjustable rates of interest.
Commercial mortgage-backed securities have been issued in public or private
transactions by a variety of public and private issuers.

The commercial mortgage loans that underlie commercial mortgage-backed
securities have certain distinct risk characteristics. Commercial mortgage
loans generally lack standardized terms, which may complicate their structure.
Commercial properties themselves tend to be unique and are more difficult to
value than single-family residential properties. Commercial mortgage loans also
tend to have shorter maturities than residential mortgage loans, and may not be
fully amortizing, meaning that they have a significant principal balance, or
"balloon" payment, due on maturity. Assets underlying commercial mortgage-
backed securities may relate only to a few properties or a single property. The
risk involved in single property financings is highly concentrated. In
addition, commercial properties, particularly industrial and warehouse
properties, are subject to environmental risks and the burdens and costs of
compliance with environmental laws and regulations. At the same time,
commercial mortgage-backed securities may have a lower prepayment risk than
residential mortgage-backed securities, because commercial mortgage loans
generally prohibit or impose penalties on prepayments of principal. In
addition, commercial mortgage-backed securities often are structured with some
form of credit enhancement to protect against potential losses on the underlying
mortgage loans.

ZERO COUPON SECURITIES
- ----------------------

WHEN-ISSUED SECURITIES
- ----------------------

The Fund may purchase securities on a "when-issued" basis. This means that
the Fund will enter into a commitment to buy the security before the security
has been issued. The Fund's payment obligation and the interest rate on the
security are determined when the Fund enters into the commitment. The security
is typically delivered to the Fund 15 to 120 days later. No interest accrues on
the security between the time the Fund enters into the commitment and the time
the security is issued. If the value of the security being purchased falls
between the time the Fund commits to buy it and the payment date, the Fund may
sustain a loss. The risk of this loss is in addition to the Fund's risk of loss
on the securities actually in its portfolio at the time. When the Fund buys a
security on a when-issued basis, it is subject to the risk that market rates of
interest will increase before the time the security is delivered, with the
result that the yield on the security delivered to the Fund may be lower than
the yield available

-7-
<PAGE>

on other, comparable securities at time of delivery. If the
Fund has outstanding obligations to buy when-issued securities, it will maintain
liquid assets in a segregated account at its custodian bank in an amount
sufficient to satisfy these obligations.

REPURCHASE AGREEMENTS
- ---------------------

The Fund may enter into repurchase agreements, by which the Fund purchases
a security and obtains a simultaneous commitment from the seller (a bank or, to
the extent permitted by the Investment Company Act of 1940, as amended, a
recognized securities dealer) to repurchase the security at an agreed upon price
and date (usually seven days or less from the date of original purchase). The
resale price is in excess of the purchase price and reflects an agreed upon
market rate unrelated to the coupon rate on the purchased security. Such
transactions afford the Fund the opportunity to earn a return on temporarily
available cash. Although the underlying security may be a bill, certificate of
indebtedness, note or bond issued by an agency, authority or instrumentality of
the U.S. Government, the obligation of the seller is not guaranteed by the U.S.
Government and there is a risk that the seller may fail to repurchase the
underlying security. In such event, the Fund would attempt to exercise rights
with respect to the underlying security, including possible disposition in the
market. However, the Fund may be subject to various delays and risks of loss,
including (a) possible declines in the value of the underlying security during
the period while the Fund seeks to enforce its rights thereto and (b) inability
to enforce rights and the expenses involved in attempted enforcement.

CALIFORNIA FISCAL CONDITION
- ---------------------------

Because the Fund will invest primarily in California tax exempt securities,
its performance may be especially affected by factors pertaining to the
California economy and other factors specifically affecting the ability of
issuers of California tax exempt securities to meet their obligations. As a
result, the value of the Fund's shares may fluctuate more widely than the value
of shares of a portfolio investing in securities relating to a number of
different states. The ability of state, county, or local governments to meet
their obligations will depend primarily on the availability of tax and other
revenues to those governments and on their fiscal conditions generally. An
expanded discussion of risks associated with California tax exempt securities is
contained in the Statement of Additional Information.

THE FUND'S INVESTMENT ADVISER

The portfolio managers for the Fund are Kent P. Newmark and Robert K.
Payne. Mr. Newmark is a Vice President of Loomis Sayles and a Managing Partner
of its San Francisco office. Mr. Payne is a Vice President of Loomis Sayles.
Mr. Newmark has been with Loomis Sayles for 21 years and Mr. Payne for 14
years.

FUND EXPENSES

The Fund pays Loomis Sayles a monthly investment advisory fee. This fee is
paid at the annual rate of 0.50% of the Fund's average weekly net assets.

-8-
<PAGE>

PORTFOLIO TRANSACTIONS

HOW TO PURCHASE SHARES

You may make an initial purchase of shares of the Fund by submitting a
completed application form and payment to Loomis Sayles. The minimum initial
investment in the Fund is $500,000. Subsequent investments must be at least
$50,000. The Trust reserves the right to waive these minimums in its sole
discretion.

Shares of the Fund may be purchased by exchange of (i) cash, (ii)
securities on deposit with a custodian acceptable to Loomis Sayles or (iii) a
combination of such securities and cash. Purchase of shares of the Fund in
exchange for securities is subject in each case to the determination by Loomis
Sayles that the securities to be exchanged are acceptable for purchase by the
Fund. Securities accepted by Loomis Sayles in exchange for Fund shares will be
valued in the same manner as the Fund's assets, as described below, as of the
time of the Fund's next determination of net asset value after such acceptance.
All dividends and subscription or other rights which are reflected in the market
price of accepted securities at the time of valuation become the property of the
Fund and must be delivered to the Fund upon receipt by the investor from the
issuer. A gain or loss for federal income tax purposes would be realized upon
the exchange of any securities tendered. A shareholder who wishes to purchase
shares by exchanging securities should obtain instructions by calling (617) 482-
2450.

-9-
<PAGE>

HOW TO REDEEM SHARES

You can redeem your shares by sending a written request to the Trust.

Redemption proceeds may be made in money or in kind, or partly in money and
partly in kind, as determined by the Trust.

OTHER INFORMATION

The Fund's investment performance may from time to time be included in
advertisements about the Fund.

The Fund's yield will be computed by dividing the fund's net investment
income for a recent 30-day period by the maximum offering price (reduced by any
undeclared earned income expected to be paid shortly as a dividend) on the last
trading day of that period.

Total return for the Fund is measured by comparing the value of an
investment in the Fund at the beginning of the relevant period to the redemption
value of the investment in the Fund at the end of the period (assuming immediate
reinvestment of any dividends or capital gain distributions).

-10-
<PAGE>

DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAXES

The Fund pays its net investment income to shareholders as dividends
monthly. Any capital gain distributions are normally made annually in December,
but may, to the extent permitted by law, be made more frequently as deemed
advisable by the Trustees. The Fund distributes annually in December all of its
net capital gains realized from the sale of portfolio securities. The Trustees
may change the frequency with which the Fund declares or pays dividends.

Your dividends and capital gain distributions will automatically be
reinvested in additional shares of the Fund on the payment date unless you have
elected to receive cash.

The Fund intends to qualify as a "regulated investment company" under the
Internal Revenue Code of 1986, as amended. As such, so long as the Fund
distributes substantially all its net investment income and net capital gains to
its shareholders, the Fund itself does not pay any federal income or excise tax.

Fund dividends designated as "exempt-interest dividends" are not generally
subject to federal income tax or California personal income tax (to the extent
derived from California tax exempt securities). However, an investment in the
Fund may result in liability for federal alternative minimum tax for corporate
and individual shareholders. Of the dividends paid by the Fund from net
investment income for the fiscal year ended December 31, 1996, 90.26% of such
dividends constituted exempt-interest dividends for regular federal income tax
purposes.

It is anticipated that the Fund will be operated so that its dividends will
be exempt-interest dividends. However, as described under "Investment Objective
and Policies," certain investments of the Fund may produce taxable income.
Distributions of such income will be taxable to you as ordinary income, except
that any distributions of net long-term capital gains (if any) will be taxable
to you as such, regardless of how long you have owned shares of the Fund. These
distributions will be taxable as described whether distributed in cash or
additional shares.

The Fund may at times purchase California tax exempt securities at a
discount from the price at which they were originally issued. For federal
income tax purposes, some or all of this market discount will be included in the
Fund's ordinary income and will be taxable to you as such when it is distributed
to you.

If you incur or continue indebtedness to purchase or carry shares of the
Fund, that portion of interest paid or accrued on such indebtedness that equals
the total interest paid or accrued on the indebtedness, multiplied by the
percentage of the Fund's total distributions (not including distributions from
net long-term capital gains) paid to you that are exempt-interest dividends, is
not deductible for federal income tax purposes. The Internal Revenue Service
may consider the purchase of shares to have been made with borrowed funds even
though such funds are not directly traceable to the purchase of shares.

Under the Code, if you sell a share of the Fund after holding it for six
months or less, any loss on the sale or exchange of such share will be
disallowed to the extent of the amount of any exempt-interest dividends that you
have received with respect to the share that is sold and will be treated as a
long-term capital loss to the extent of any capital gain distributions received
with respect to such share.

If you receive social security or railroad retirement benefits, you may be
taxed at the federal level on a portion of those benefits as a result of
receiving tax-exempt income (including exempt-interest dividends distributed by
the Fund). California personal income tax does not apply to social security or
railroad retirement benefits.

The Fund is required to withhold 31% of any redemption proceeds and all
taxable income dividends and capital gain distributions it pays to you (1) if
you do not provide a correct, certified taxpayer identification number, (2) if
the Fund is notified that you have underreported income in the past, or (3) if
you fail to certify to the Fund that you are not subject to such withholding.

In January of each year, the Trust will send you a statement showing the
tax status of dividends and distributions paid to you during the year.

-11-
<PAGE>

The foregoing summarizes certain tax consequences of investing in the Fund.
Before investing, you should consult your own tax adviser for more information
concerning the federal, state and local tax consequences of investing in,
redeeming or exchanging Fund shares.

-12-
<PAGE>

APPENDIX A

DESCRIPTION OF BOND RATINGS ASSIGNED BY
STANDARD & POOR'S AND
MOODY'S INVESTORS SERVICE, INC.

STANDARD & POOR'S
- -----------------

AAA

This is the highest rating assigned by Standard & Poor's to a debt obligation
and indicates an extremely strong capacity to pay interest and repay principal.

Bonds rated A have a strong capacity to pay interest and repay principal,
although they are somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions.

BBB

BB, B, CCC, CC

The rating C is reserved for income bonds on which no interest is being paid.

Bonds rated D are in default, and payment of interest and/or repayment of
principal is in arrears.

Plus (+) or Minus (-): The ratings from "AA" to "B" may be modified by the
addition of a plus or minus sign to show relative standing within the major
rating categories.

A-1
<PAGE>

MOODY'S INVESTORS SERVICE, INC.
- -------------------------------

Aaa

Baa

Caa

Bonds which are rated Caa are of poor standing. Such issues may be in default
or there may be present elements of danger with respect to principal or
interest.

Bonds which are rated Ca represent obligations which are speculative in a high
degree. Such issues are often in default or have other marked shortcomings.

Bonds which are rated C are the lowest rated class of bonds, and issues so rated
can be regarded as having extremely poor prospects of ever attaining any real
investment standing.

A-2

<PAGE>
Should no rating be assigned by Moody's, the reason may be one of the following:

1. An application for rating was not received or accepted.

2. The issue or issuer belongs to a group of securities that are not
rated as a matter of policy.

3. There is lack of essential data pertaining to the issue or issuer.

4. The issue was privately placed in which case the rating is not
published in Moody's publications.

A-2

<PAGE>

LOOMIS SAYLES INVESTMENT TRUST

LOOMIS SAYLES CORE GROWTH FUND

ONE FINANCIAL CENTER
BOSTON, MASSACHUSETTS 02111
(617) 482-2450

PROSPECTUS

March 7, 1997

The Loomis Sayles Investment Trust (the "Trust") is a group of nine mutual
funds including the Loomis Sayles Core Growth Fund (the "Fund"). The other
series which are publicly offered by the Trust and are described in separate
prospectuses are:

Loomis Sayles California Tax-Free Income Fund
Loomis Sayles Core Fixed Income Fund
Loomis Sayles Fixed Income Fund
Loomis Sayles High Yield Fixed Income Fund
Loomis Sayles Intermediate Duration Fixed Income Fund
Loomis Sayles Investment Grade Fixed Income Fund

<PAGE>

TABLE OF CONTENTS

<TABLE>
<S> <C>
SUMMARY OF EXPENSES................................. -3-

PRIOR PERFORMANCE................................... -4-

THE TRUST........................................... -5-

INVESTMENT OBJECTIVE AND POLICIES................... -5-

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS....... -5-

THE FUND'S INVESTMENT ADVISER....................... -6-

FUND EXPENSES....................................... -6-

PORTFOLIO TRANSACTIONS.............................. -7-

HOW TO PURCHASE SHARES.............................. -7-

HOW TO REDEEM SHARES................................ -8-

OTHER INFORMATION................................... -8-

DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAXES..... -9-
</TABLE>

-2-
<PAGE>

SUMMARY OF EXPENSES

<TABLE>
<S> <C>
Shareholder Transaction Expenses:
Maximum Sales Load Imposed on
Purchases (as a percentage of offering price) none
Maximum Sales Load Imposed on
Reinvested Dividends (as a percentage of
offering price) none
Deferred Sales Load (as a percentage of original
purchase price or redemption
proceeds as applicable) none
Redemption Fees (as a percentage of amount
redeemed) none
Exchange Fees none

Annual Operating Expenses
(as a percentage of average net assets):
Management fees (after expense
limitation/1/ .26%
12b-1 Fees none
Other Operating Expenses .39%
Total Operating Expenses (after expense
limitation)/1/ .65%

Example
You would pay the following
expenses on a $1,000 investment
assuming a 5% annual return
(with or without a redemption at
the end of each time period):

One Year $7
Three Years $21
Five Years $36
Ten Years $81
</TABLE>

__________________

/1/ Loomis Sayles has voluntarily undertaken for an indefinite period to limit
the Fund's total operating expenses to the percentage of average net assets
shown above. In the absence of the voluntary expense limitation, Management
Fees and Total Operating Expenses for the fiscal year ended December 31, 1996
would have been .50% and .89%, respectively.

-3-
<PAGE>

PRIOR PERFORMANCE

(FOR A SHARE OF THE FUND OUTSTANDING THROUGHOUT THE INDICATED PERIODS)

The information presented below relates to periods prior to the
effectiveness of the Fund's registration statement under the Securities Act of
1933, as amended (the "1933 Act"). The information presented below is included
in financial statements of the Fund that have been audited by Coopers & Lybrand
L.L.P., independent accountants, whose report thereon appears in the Fund's 1996
Annual Report. The following information should be read in conjunction with the
"Report of Independent Accountants," financial statements and notes thereto
contained in the Fund's 1996 Annual Report, which are incorporated by reference
into this Prospectus and the Statement of Additional Information. The Fund is
managed in a manner that is in all material respects similar to the manner in
which it was managed prior to the effectiveness of its registration statement
under the 1933 Act.

<TABLE>
<CAPTION>
OCTOBER
YEAR ENDED 1* THROUGH
DECEMBER 31, DECEMBER 31,
1996 1995
------------ ------------
<S> <C> <C>

Net asset value, beginning of period......................... $10.02 $10.00

Income from investment operations -
Net investment income..................................... 0.10 0.02
Net realized and unrealized gain on investments........... 1.47 0.02
Total from investment operations......................... 1.57 0.04

Less distributions -
Distributions from net investment income.................. (0.11) (0.02)

Net asset value, end of period............................... $11.48 $10.02

Total return (%)............................................. 15.60 0.40
Net assets, end of period (000).............................. $21,906 $7,609
Ratio of operating expenses to average net assets (%)........ 0.65 0.65**
Ratio of net investment income to average net assets (%)..... 1.10 1.36**
Portfolio turnover rate (%).................................. 96.5 22.4
Average commission rate paid................................. $0.0278*** -----
Without giving effect to the voluntary expense limitations:
The ratio of operating expenses to average net assets
would have been (%).......................................... 0.89 1.43**
The net investment income per share would have been.......... $0.08 $0.01
</TABLE>

* Commencement of operations.
**Annualized.

***For fiscal years beginning on or after September 1, 1995, the Fund is
required to disclose its average commission rate per share for trades upon which
commissions are charged. This generally does not reflect mark-ups, mark-downs,
or spreads on shares traded on a principal basis.

-4-
<PAGE>

THE TRUST

The Fund is a series of the Trust. The Trust is a diversified open-end
management investment company which was organized as a Massachusetts business
trust on December 23, 1993. The Trust is authorized to issue an unlimited
number of full and fractional shares of beneficial interest in multiple series.
Shares are freely transferable and entitle shareholders to receive dividends as
determined by the Trust's board of trustees (the "Trustees") and to cast a vote
for each share held (with A fractional vote for each fractional share held) at
shareholder meetings. The Trust does not generally hold shareholder meetings
and will do so only when required by law. Shareholders may call meetings to
consider removal of the Trustees.

INVESTMENT OBJECTIVE AND POLICIES

The Fund's investment objective is long-term growth of capital.

The Fund seeks to attain its objective by identifying, and investing in the
common stock of, companies that will report above average and better than
consensus earnings growth over several years. Under normal market conditions,
the Fund will invest at least 65% of its total assets in common stocks and other
equity securities. while this approach will often lead to investing in
"traditional" growth companies, it may also encompass investments in such areas
as revitalized industries, restructured companies and cyclically sensitive
companies at the early stages of an economic advance. In addition to superior
earnings prospects, the Fund looks for companies undergoing qualitative
improvement likely to result in an upgraded valuation. Although such companies
may present greater opportunity for capital appreciation, investors should be
aware that greater risk may be associated with investments in such companies
than with equity securities generally. The Fund may also invest in securities
issued or guaranteed by the U.S. Government, its authorities, agencies or
instrumentalities and certificates representing undivided interests in the
interest or principal of U.S. Treasury securities (collectively, "U.S.
Government Securities"), when-issued securities, convertible securities and zero
coupon bonds.

Some of the Fund's investment restrictions are "fundamental" and cannot be
changed without a majority vote of the Fund's shareholders. Such restrictions
include: (1) a restriction prohibiting the Fund from making loans; (2) a
restriction prohibiting the Fund from purchasing a security (other than U.S.
Government Securities) if, as a result, more than 25% of the Fund's total assets
(taken at current value) would be invested in any one industry; (3) a
restriction prohibiting the Fund from borrowing money in excess of 10% of its
total assets (taken at cost) or 5% of its total assets (taken at current value),
whichever is lower, and from borrowing any money except as a temporary measure
for extraordinary or emergency purposes; and (4) a restriction prohibiting the
Fund from purchasing any illiquid security including a security that is not
readily marketable if, as a result, more than 15% of the Fund's net assets based
on current value would then be invested in such securities. For additional
investment restrictions, see the Statement of Additional Information.

Although authorized to invest in restricted securities, the Fund, as a matter
of nonfundamental operating policy, currently does not intend to invest in such
securities, other than Rule 144A securities. Rule 144A securities are privately
offered securities that can be resold only to certain qualified institutional
buyers. Rule 144A securities are treated as illiquid, unless Loomis Sayles has
determined, under guidelines established by the Trustees, that the particular
issue of Rule 144A securities is liquid.

The investment objective of the Fund is "fundamental" and cannot be changed
without a majority vote of the Fund's shareholders. All investment policies
other than those that are identified as "fundamental" may be changed by the
Trustees without a vote of the Fund's shareholders.

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS

The net asset value of the Fund's shares will vary as a result of changes in
the value of securities in the Fund's portfolio. The following describes the
securities in which the Fund will principally invest and the risks associated
with them. Additional information about the Fund's investment practices can be
found in the Statement of Additional Information.

-5-
<PAGE>

EQUITY SECURITIES
- -----------------

While offering greater potential for long-term growth, equity securities are
more volatile and more risky than some other forms of investment. The Fund's
investments may include securities traded "over-the-counter" as well as those
traded on a securities exchange. Some over-the-counter securities may be more
difficult to sell under some market conditions.

SMALL COMPANIES
- ---------------

The Fund may invest in the securities of companies with smaller
capitalization. Investments in companies with relatively small capitalization
may involve greater risk than is usually associated with more established
companies. These companies often have sales and earnings growth rates which
exceed those of companies with larger capitalization. Such growth rates may in
turn be reflected in more rapid share price appreciation. However, companies
with smaller capitalization often have limited product lines, markets or
financial resources and they may be dependent upon a relatively small management
group. The securities may have limited marketability and may be subject to more
abrupt or erratic movements in price than securities of companies with larger
capitalization or the market averages in general. The net asset value of funds
that invest in companies with small capitalization therefore may fluctuate more
widely than market averages.

WHEN-ISSUED SECURITIES
- ----------------------

The Fund may purchase securities on a "when-issued" basis. This means that
the Fund will enter into a commitment to buy the security before the security
has been issued. The Fund's payment obligation and the interest rate on the
security are determined when the Fund enters into the commitment. The security
is typically delivered to the Fund 15 to 120 days later. No interest accrues on
the security between the time the Fund enters into the commitment and the time
the security is issued. If the value of the security being purchased falls
between the time a Fund commits to buy it and the payment date, the Fund may
sustain a loss. The risk of this loss is in addition to the Fund's risk of loss
on the securities actually in its portfolio at the time. If the Fund has
outstanding obligations to buy when-issued securities, it will maintain liquid
assets in a segregated account at its custodian bank in an amount sufficient to
satisfy these obligations.

THE FUND'S INVESTMENT ADVISER

The Fund's investment adviser is Loomis Sayles, One Financial Center, Boston,
Massachusetts 02111. Founded in 1926, Loomis Sayles is one of the country's
oldest and largest investment firms. Loomis Sayles's sole general partner is
indirectly owned by New England Investment Companies, L.P., a publicly traded
limited partnership whose sole general partner is indirectly owned by
Metropolitan Life Insurance Company.

In addition to selecting and reviewing the Fund's investments, Loomis Sayles
provides executive and other personnel for the management of the Fund. The
Board of Trustees supervises Loomis Sayles's conduct of the affairs of the Fund.

The portfolio manager for the Fund is Quentin P. Faulkner. Mr. Faulkner is a
Vice President of Loomis Sayles and a Managing Partner of its Boston Counseling
Group office.

FUND EXPENSES

The Fund pays Loomis Sayles a monthly investment advisory fee. This fee is
paid at the annual rate of .50% of the Fund's average weekly net assets.

-6-
<PAGE>

PORTFOLIO TRANSACTIONS

HOW TO PURCHASE SHARES

You may make an initial purchase of shares of the Fund by submitting a
completed application form and payment to Loomis Sayles. The minimum initial
investment in the Fund is $2,500,000. Subsequent investments must be at least
$50,000. The Trust reserves the right to waive these minimums in its sole
discretion.

Shares of the Fund may be purchased by exchange of (i) cash, (ii) securities
on deposit with a custodian acceptable to Loomis Sayles or (iii) a combination
of such securities and cash. Purchase of shares of the Fund in exchange for
securities is subject in each case to the determination by Loomis Sayles that
the securities to be exchanged are acceptable for purchase by the Fund.
Securities accepted by Loomis Sayles in exchange for Fund shares will be valued
in the same manner as the Fund's assets, as described below, as of the time of
the Fund's next determination of net asset value after such acceptance. All
dividends and subscription or other rights which are reflected in the market
price of accepted securities at the time of valuation become the property of the
Fund and must be delivered to the Fund upon receipt by the investor from the
issuer. A gain or loss for federal income tax purposes would be realized upon
the exchange of any securities tendered. A shareholder who wishes to purchase
shares by exchanging securities should obtain instructions by calling (617) 482-
2450.

The price you pay will be the per share net asset value next calculated after
a proper investment order is received by the Trust. Shares of the Fund are sold
without any sales charge. The net asset value of the Fund's shares is
calculated by dividing the Fund's net assets by the number of shares
outstanding. Net asset value is calculated at least weekly and as of the close
of the New York Stock Exchange (the "Exchange") on each day on which an order
for purchase or redemption of Fund shares is received and on which the Exchange
is open for unrestricted trading. Portfolio securities are valued at their
market value as more fully described in the Statement of Additional
Information.

-7-
<PAGE>

HOW TO REDEEM SHARES

You can redeem your shares by sending a written request to the Trust.

Further, if (1) you are redeeming shares worth more than $50,000, (2) you are
requesting that the proceeds be sent to someone other than yourself or be sent
to an address other than your address as it appears in the Trust's records, or
(3) the account registration has changed within the last 30 days, you must have
your signature guaranteed by an eligible guarantor. Eligible guarantors include
commercial banks, trust companies, savings associations, credit unions and
brokerage firms that are members of domestic securities exchanges. Before
submitting the redemption request, you should verify with the guarantor
institution that it is an eligible guarantor. Signature guaranties by notaries
public are not acceptable.

Proceeds resulting from a written redemption request will normally be mailed
to you within seven days after receipt of your request in good order. If you
purchased your shares by check and your check was deposited less than fifteen
days prior to the redemption request, the Trust may withhold redemption proceeds
until your check has cleared.

Redemption proceeds may be made in money or in kind, or partly in money and
partly in kind, as determined by the Trust.

OTHER INFORMATION

The Board of Trustees may, without shareholder approval, divide the Trust's
shares of beneficial interest into multiple series. The Trust is currently
divided into nine series, including the Fund, the other publicly-offered funds
listed on the cover of this Prospectus, and two other funds, the Loomis Sayles
Convertible Bond Fund and Loomis Sayles Mortgage Securities Fund, shares of
which are not presently being publicly offered.

As of February 28, 1997, each of Brockton Hospital Pension Trust and
Brockton Health Corp. Endowment may be deemed to control the Fund because it
possessed beneficial ownership, either directly or indirectly, of more than 25%
of the Fund's shares.

The Fund's investment performance may from time to time be included in
advertisements about the Fund.

Total return for the Fund is measured by comparing the value of an investment
in the Fund at the beginning of the relevant period to the redemption value of
the investment in the Fund at the end of the period (assuming immediate
reinvestment of any dividends or capital gain distributions).

-8-
<PAGE>

DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAXES

Because the Fund is designed primarily for tax-exempt investors such as
pension plans, endowments and foundations, the Fund is not managed with a view
to reducing taxes. The Fund pays any net investment income to shareholders as
dividends annually. Any capital gain distributions are normally made annually
in December, but may, to the extent permitted by law, be made more frequently as
deemed advisable by the Trustees. The Fund distributes all of its net realized
capital gains after applying any capital loss carryovers. The Trustees may
change the frequency with which the Fund declares or pays dividends.

A portion of any dividend from the Fund is expected to be eligible for the
dividends-received deduction for corporate shareholders.

The Trust will send you an annual statement showing the federal tax status of
dividends and distributions paid to you during the preceding year.

The Fund is required to withhold 31% of redemption proceeds, income dividends
and capital gain distributions it pays to you (1) if you do not provide a
correct, certified taxpayer identification number, (2) if the Fund is notified
that you have underreported income in the past, or (3) if you fail to certify to
the Fund you are not subject to such withholding.

The foregoing summarizes certain U.S. federal income tax consequences of
investing in the Fund. Before investing, you should consult your own tax
adviser for more information concerning the federal, state and local tax
consequences of investing in, redeeming or exchanging Fund shares.

-9-
<PAGE>

LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
ONE FINANCIAL CENTER
BOSTON, MASSACHUSETTS 02111
(617) 482-2450

PROSPECTUS

MARCH 7, 1997

The Loomis Sayles Investment Trust (the "Trust") is a group of nine mutual
funds including the Loomis Sayles High Yield Fixed Income Fund (the "Fund"). The
other series which are publicly offered by the Trust and are described in
separate prospectuses are:

Loomis Sayles California Tax-Free Income Fund
Loomis Sayles Core Fixed Income Fund
Loomis Sayles Core Growth Fund
Loomis Sayles Fixed Income Fund
Loomis Sayles Intermediate Duration Fixed Income Fund
Loomis Sayles Investment Grade Fixed Income Fund

This Prospectus concisely describes the information that you should know
before investing in the Fund. Please read it carefully and keep it for future
reference. A Statement of Additional Information dated March 7, 1997 is
available free of charge; to obtain a free copy or to make any inquiries about
the Fund, write to Loomis Sayles Investment Trust, One Financial Center, Boston,
Massachusetts 02111 or telephone (617) 482-2450. The Statement of Additional
Information, which contains more detailed information about the Fund, has been
filed with the Securities and Exchange Commission (the "SEC") and is
incorporated by reference into this Prospectus.

THE LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND WILL NORMALLY INVEST AT
LEAST 65% OF ITS ASSETS IN LOWER RATED FIXED INCOME SECURITIES, COMMONLY KNOWN
AS "JUNK BONDS" AND MAY INVEST WITHOUT LIMIT IN SUCH SECURITIES. INVESTMENTS OF
THIS TYPE ARE SUBJECT TO A GREATER RISK OF LOSS OF PRINCIPAL AND NON-PAYMENT OF
INTEREST. INVESTORS SHOULD ASSESS CAREFULLY THE RISKS ASSOCIATED WITH AN
INVESTMENT IN THE LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND. SEE "MORE
INFORMATION ABOUT THE FUND'S INVESTMENTS; LOWER RATED FIXED INCOME
SECURITIES."