<PAGE>
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LOOMIS SAYLES INVESTMENT TRUST
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A Family of Institutional Mutual Funds
SEMI-ANNUAL REPORT
June 30, 1997
One Financial Center
Boston, Massachusetts 02111
(617) 482-2450
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[Photo of
Daniel J. Fuss]
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DANIEL J. FUSS
President
Dear Shareholders:
Let's talk about peace, oceans, teenagers, hockey players and crocodiles.
THE WORLD IS AT PEACE
The world is a peaceful place and that is good for investing money. While there
are many local wars, there is no large-scale war, hot or cold, on the horizon.
Because of that, it is a little easier for the national governments to balance
their budgets. Also, there are some significant changes occurring in worldwide
population distribution, as we collectively age. Out of this, a new political
order is evolving that is fundamentally good for investing money.
THERE'S AN OCEAN OF LIQUIDITY
The global economy is chugging along, but not at a pace that can use up the
ocean of liquidity that exists in the world today. Normally, at this phase of
the economic cycle, signs of inflation start to occur. None of those signs are
evident now, so it doesn't look like this ocean will dry up anytime soon.
THE ECONOMY IS ABOUT TO BECOME A TEENAGER
This phenomenon has placed the Federal Reserve and other central banks in a
position similar to parents with a child about to become a teenager. Those
parents know what is to come; the central banks know too what's coming. However,
the economic evidence isn't apparent to all. It's only the point in the cycle
that tells the central banks to prepare for the worst. But the banks really
don't have the political and popular support to raise interest rates to help dry
up some of this excess liquidity. Therefore, they wait.
AND THE HOCKEY PLAYERS ARE CAUSING MISCHIEF
Meanwhile in the markets, the hockey players are going full tilt. Environments
like this, with ample liquidity and few serious worries, lead to all sorts of
mischief. The hockey players are finding many ways to add incremental return.
Many are borrowing a lot of money and putting it into the market. The most
prominent example of this is the so-called "yen/dollar carry trade", where
people borrow short term funds in yen and invest in longer term dollar
denominated assets. Another variation is extending the "collateralized bond
obligation" format to high yield bonds. Another risk is the possible outcome
from the so-called "virtual hedging" techniques, where plans are made to sell
stocks when the market declines past a certain point. None of these strategies
are intrinsically bad, but they do introduce more risk into the market.
All of this push for yield and return has narrowed the valuation differences in
most markets. That is, there isn't that much to choose between one type of
investment and another. This has caused certain areas of the market to get quite
pricey relative to where they used to be. Nevertheless, it is a peaceful time
and perhaps some of these valuations aren't so extreme after all.
<PAGE>
MEANWHILE, THE CROCODILES LAY IN WAIT
A really powerful "market message" statement would be nice for this letter. I
don't have one. However, I am reminded of an old Malaysian saying, "just because
the river is quiet does not mean the crocodiles have left." There are definitely
crocodiles out there. Whether or not they will surface remains to be seen. We're
keeping a sharp eye out for them. Until they do, it remains a good time to
invest.
Thanks for investing with us.
Sincerely,
/s/ Daniel J. Fuss
Daniel J. Fuss
<PAGE>
LOOMIS SAYLES CALIFORNIA
TAX-FREE INCOME FUND
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Cumulative Performance Inception to June 30, 1997
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Average Returns (%) - Period Ended June 30, 1997
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Annualized
--------------------
Year Since
to date 1 year 2 years Inception
Loomis Sayles California
Tax-Free Income Fund(a) 2.7 6.7 6.3 5.7
Lipper California Intermediate
Municipal Bond Fund Index(b) 2.6 6.6 6.1 5.5
Lehman Brothers Municipal
Bond Index(c) 3.2 8.3 7.4 6.7
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Dates Loomis Lipper Lehman
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As of 6/1/95 10.00 10.00 10.00
Period Ended
6/30/95 09.93 09.92 09.91
9/30/95 10.19 10.20 10.20
12/31/95 10.49 10.49 10.62
3/31/96 10.47 10.43 10.49
6/30/96 10.52 10.48 10.57
9/30/96 10.69 10.67 10.81
12/31/96 10.93 10.89 11.09
3/31/97 10.82 10.88 11.06
6/30/97 11.22 11.18 11.45
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Note: Past performance is not predictive of future performance.
(a): Inception date of the Loomis Sayles California Tax-Free Income Fund is June
1, 1995.
(b): Source: Lipper Analytical Services
(c): Lehman Brothers Municipal Bond Index is computed from prices on
approximately 21,000 bonds consisting of roughly 30% revenue bonds, 30%
government obligation bonds, 27% insured and 13% prerefunded bonds. The
index returns have not been reduced for management and operating expenses
applicable to mutual fund investments. Source: Lehman Brothers
As the second quarter began and the strength of the economy had everyone nervous
about inflation, interest rates edged higher. By mid-April, rates reached a high
in the 30-year Treasury of 7.17%. As growth forecasts began to slow and
inflation, as reflected by May and June CPI and PPI numbers, showed continued
low levels, rates moved lower.
The movement of rates in the quarter was approximately the same along the yield
curve.
<TABLE>
<CAPTION>
Treasuries Municipals
3/30 6/30 3/30 6/30
<S> <C> <C> <C> <C> <C> <C>
5 yr. .................................... 6.75 6.37 -.38 bps 4.60 4.40 -.20 bps
10 yr. ................................... 6.90 6.50 -.40 bps 4.95 4.80 -.15 bps
30 yr. ................................... 7.10 6.78 -.32 bps 5.75 5.60 -.15 bps
</TABLE>
Yields on municipal securities had not risen as much as those on Treasuries, so
their retracement was more moderate.
The California Tax-Free Income Fund returned 2.7% in the second quarter. The
Lipper California Intermediate Municipal Bond Fund Index was also up 2.7%.
Year-to-date the Fund is up 2.7% and Lipper 2.6%. For the two-year period, the
Fund is up 13.0% (6.3% annualized) versus Lipper 12.6% (6.1% annualized). The
Fund has a current yield of 4.7%.
Looking forward, the question now is the extent of GDP growth in the second
half. We believe inflation as measured by the CPI will be modest in 1997. Also,
at these lower levels of interest rates, we expect municipal offerings to
increase, giving us purchase alternatives.
Robert K. Payne is the portfolio manager for the California Tax-Free Income
Fund.
<PAGE>
LOOMIS SAYLES CORE FIXED INCOME FUND
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Cumulative Performance Inception to June 30, 1997
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Average Returns (%) - Period Ended June 30, 1997
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Annualized
--------------------
Year Since
to date 1 year Inception
Loomis Sayles Core Fixed
Income Fund(a) 2.6 7.4 6.7
Lipper Corp. A Rated Bond
Fund Index(b) 2.7 8.0 7.7
Merrill Lynch Government/
Corporate Bond Index(c) 2.8 7.8 7.7
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Dates Loomis Lipper Merrill
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As of 4/24/96 10.00 10.00 10.00
Period Ended
6/30/96 10.06 10.02 10.04
9/30/96 10.21 10.20 10.21
12/31/96 10.53 10.53 10.53
3/31/97 10.44 10.44 10.45
6/30/97 10.80 10.82 10.82
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Note: Past performance is not predictive of future performance.
(a): Inception date of the Loomis Sayles Core Fixed Income Fund is April 24,
1996. Since Merrill Lynch Government/Corporate Bond Index & Lipper
Corporate A Rated Bond Fund Index performance data is not available
coincident with this date, comparative performance is presented from April
30, 1996.
(b): Source: Lipper Analytical Services
(c): Composed of all bonds that are investment grade (rated Baa or higher by
Moody's or BBB or higher by S&P, if unrated by Moody's). Issues must have
at least one year to maturity. Total return comprises price
appreciation/depreciation and income as a percentage of the original
investment. Indices are rebalanced monthly by market capitalization.
Source: Merrill Lynch
The fixed income market enjoyed a sharp rally in the second quarter that pushed
interest rates toward the lower end of the recent trading range. Interest rates
declined as economic statistics began to show some moderation in the pace of
economic growth. In addition, inflation readings have also been declining. The
combination of moderating growth and low inflation has provided investors
confidence that the Federal Reserve may not have to further tighten monetary
policy.
As we look forward to the second half of 1997, we expect the long bond to
continue trading in its recent range. While it appears as if the non-
inflationary growth rate may be greater than that which is currently accepted,
we believe the relationship between above-trend growth and inflation will hold.
It is the definition of above-trend growth that is being rewritten, not its
relationship to inflation.
While the extra yield associated with corporate fixed income securities provided
incremental return, mortgage securities were the best performing sector in the
second quarter. Given that outperformance, however, we feel mortgage securities
have become a bit overvalued and expect the corporate sector to be the better
performer through the remainder of 1997.
The Core Fixed Income Fund returned 3.5% for the quarter and 2.6% year-to-date
versus the Merrill Lynch Government/Corporate Bond Index of 3.6% and 2.8%,
respectively. Since its inception on April 24, 1996, the Fund has an average
annual return of 6.7%. For the same period, the Merrill Lynch Government/
Corporate Bond Index has an average annual return of 7.7%.
William F. Camp is the portfolio manager for the Core Fixed Income Fund.
<PAGE>
LOOMIS SAYLES CORE GROWTH FUND
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Cumulative Performance Inception to June 30, 1997
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Average Returns (%) - Period Ended June 30, 1997
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Annualized
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Year Since
to date 1 year Inception
Loomis Sayles Core
Growth Fund(a) 13.2 24.7 16.9
Lipper Growth Fund Index(b) 15.4 25.6 20.7
S&P 500 Index(c) 20.6 34.7 29.5
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Dates Loomis Lipper S&P
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As of 10/1/95 10.00 10.00 10.00
Period Ended
12/31/95 10.04 10.24 10.60
3/31/96 10.21 10.70 11.17
6/30/96 10.53 11.06 11.67
9/30/96 10.82 11.37 12.03
12/31/96 11.61 12.03 13.04
3/31/97 11.88 11.99 13.39
6/30/97 13.14 13.89 15.72
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Note: Past performance is not predictive of future performance.
(a): Inception date of the Loomis Sayles Core Growth Fund is October 1, 1995.
(b): Source: Lipper Analytical Services
(c): S&P 500 Index is a capitalization-weighted, total return index comprised of
500 widely held common stocks, representing industrial, utility,
transportation, and financial companies traded on the New York Stock
Exchange, the American Stock Exchange and in the Over-the-Counter market.
The index returns have not been reduced for ongoing management and
operating expenses applicable to mutual fund investments.
In the fixed income markets, the concerns that characterized the latter part of
the fourth quarter and the first quarter of an overheated economy leading the
Federal Reserve into a series of rate increases abated as the robust growth of
the first quarter slowed to a more sustainable pace. The Federal Reserve
confirmed this when it made no move to raise rates at its May meeting. This
development, accompanied by continued positive news on inflation and
stabilization of the dollar after a period of weakness, produced a rally in
bonds, with the 30-year Treasury moving from a 7.10% yield at the beginning of
the quarter to 6.78% at the end of the period. The Lehman Govt/Corp Bond Index
gained 3.6% for the quarter. The stock market responded to these developments
with a massive 17.4% advance in the Standard and Poor's 500 Composite Stock
Price Index, the fourth best quarterly gain since 1950. Although smaller stocks
fared better than in the first quarter, the pace continued to be set by large
capitalization consumer growth stocks, some of which now exceed the valuations
last seen in the "nifty fifty" market of 1972.
In this environment the Core Growth Fund performed as follows:
Core Growth
Fund S&P 500
2nd Quarter 1997 +10.6% +17.4%
YTD 1997 +13.2% +20.6%
One Year +24.7% +34.7%
Looking ahead, we can only say we are in uncharted territory. We believe that
the world economy looks as good as it ever has. World growth is running above
4%, and is reaching even into historically lagging regions like Africa.
Currently, inflation is low, and financial markets are booming. Still, we feel a
bit uncomfortable. Eventually wage pressures will rise and capacity bottlenecks
will develop. It is also worth bearing in mind that much of the good news in
this country has been made possible by massive foreign - especially Asian -
buying of Treasuries. This has fueled the rise in the dollar which has been so
helpful in keeping inflation under control, and it has enabled Americans to
shift assets from bonds to stocks without forcing up interest rates.
Anything which reduces the Asian propensity to buy Treasuries would upset this
balance. Combined with a market which by most measures is at a valuation level
seldom equaled let alone exceeded in the past, we think this suggests a cautious
stance. At the least, it makes us loath to increase the already significant
exposure of the portfolio to the large predictable growth companies which have
so dominated the market over the past two years.
Portfolio activity in the quarter remained at a moderate level. Exposure to
pharmaceuticals, regional telephones, machinery and finance was increased while
exposure to business services, automobiles and apparel was reduced.
Quentin P. Faulkner is the portfolio manager for the Core Growth Fund.
<PAGE>
LOOMIS SAYLES FIXED INCOME FUND
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Cumulative Performance Inception to June 30, 1997
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Average Returns (%) - Period Ended June 30, 1997
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Annualized
--------------------
Year Since
to date 1 year 2 years Inception
Loomis Sayles Fixed
Income Fund(a) 6.4 17.0 13.5 17.6
Lipper BBB Rated
Bond Fund Index(b) 3.3 9.3 7.4 10.5
Lehman Brothers Gov't/Corp.
Bond Index(c) 2.7 7.8 6.2 9.2
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Dates Loomis Lipper Lehman
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As of 1/17/95 10.00 10.00 10.00
Period Ended
3/31/95 10.50 10.31 10.30
6/30/95 11.55 11.03 10.97
9/30/95 12.10 11.30 11.18
12/31/95 12.74 11.83 11.70
3/31/96 12.56 11.59 11.43
6/30/96 12.72 11.63 11.48
9/30/96 13.27 11.89 11.68
12/31/96 13.98 12.31 12.04
3/31/97 14.06 12.22 11.94
6/30/97 14.87 12.72 12.37
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Note: Past performance is not predictive of future performance.
(a): Inception date of the Loomis Sayles Fixed Income Fund is January 17, 1995.
Since Lehman Brothers Government/Corporate Bond Index & Lipper BBB Rated
Bond Fund Index performance data is not available coincident with this date
comparative performance is presented from January 31, 1995.
(b): Source: Lipper Analytical Services
(c): Lehman Brothers Government/Corporate Bond Index is a composite of
approximately 5,300 corporate and government issues with at least $100
million outstanding for government issues and $25 million for corporates,
and greater than 1 year maturity. The index returns have not been lowered
for ongoing management and operating expenses applicable to mutual fund
investments.
The Loomis Sayles Fixed Income Fund performed well for the six months ended June
30, 1997. The 6.4% return comfortably exceeded the return of most broad domestic
fixed income benchmarks. The Fund was a participant in most of the periods
strongest performing areas: high yield bonds, convertible issues and emerging
market Yankee issues. Duration was a positive influence on performance as yields
descended towards the end of the period with restrained inflation and economic
growth beginning to show signs of slowing.
Bonds and stocks continue to post strong gains as we head into the second half
of the year. The main driver of the markets continues to be positive liquidity
flows. Most of the liquidity is finding its way into equities, but, the money
that does flow into fixed income continues to look for yield. Demand for higher
yielding securities is strong, and high yield, emerging market and convertible
bonds continue to outperform the broader market. The risk most investors are
willing to assume is credit and that is reflected in the narrow spreads relative
to Treasuries. We believe that at some point credit spreads will widen and the
stronger long term credits will do better. Issue selection remains key in the
Fund's structure.
Throughout the period there has been little in the way of major portfolio shifts
but rather a "management of inventory" as we looked at individual issues and
assessed the relative merit of the situations (individual bonds) which presented
themselves as investment ideas. This includes existing holdings. The portfolio
remains biased to longer corporate issues. Long corporate issues have performed
well especially in the second quarter. There is a fair degree of foreign
diversification with significant non-dollar positions in Canada and New Zealand
and a relatively smaller position in South Africa. We also have maintained
positions in several U.S. dollar-denominated issues of emerging market countries
such as Argentina, Brazil, and Thailand.
We believe the portfolio is positioned well for total return. There remains good
yield advantage, call protection, and a modest amount of foreign
diversification. Our emphasis continues to be on the credit fundamentals of the
individual securities in which we invest. On balance, we continue to try to
exploit pricing inefficiencies at the security level rather than to attempt to
anticipate the direction of interest rates.
Daniel J. Fuss is the portfolio manager for the Fixed Income Fund.
<PAGE>
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
================================================================================
Cumulative Performance Inception to June 30, 1997
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Average Returns (%) - Period Ended June 30, 1997
- --------------------------------------------------------------------------------
Annualized
--------------------
Year Since
to date 1 year Inception
Loomis Sayles High Yield
Fixed Income Fund(a) 4.2 11.9 11.4
Lipper High Yield Bond
Fund Index(b) 5.7 14.2 14.3
Merrill Lynch High Yield
Bond Index(c) 5.8 14.3 14.3
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Dates Loomis Lipper Merrill
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As of 6/5/96 10.00 10.00 10.00
Period Ended
6/30/96 10.03 10.01 10.06
9/30/96 10.38 10.47 10.45
12/31/96 10.76 10.82 10.86
3/31/97 10.55 10.86 10.98
6/30/97 11.22 11.43 11.50
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Note: Past performance is not predictive of future performance.
(a): Inception date of the Loomis Sayles High Yield Fixed Income Fund is June 5,
1996. Since Merrill Lynch High Yield Bond Index & Lipper High Yield Bond
Fund Index performance data is not available coincident with this date,
comparative performance is presented from June 30, 1996.
(b): Source: Lipper Analytical Services
(c): Issues must be in the form of publicly placed non-convertible,
coupon-bearing U.S. domestic debt and must carry a term to maturity of at
least one year. Par amounts outstanding must be no less than $10 million at
the start and at the close of the performance measurement period. Issues
must be rated by Standard & Poor's or by Moody's as less than investment
grade (i.e., BBB or Baa) but not in default (i.e., DD1 or less). The index
excludes floating rate debt equipment trust certificates and Title 11
securities.
The Loomis Sayles High Yield Fixed Income Fund performed well for the
three-month period ended June 30, 1997. The 6.3% return for the period was above
the comparable benchmark. After a slow start at the beginning of the year, some
of the credit ideas within the portfolio experienced good price movement in the
second quarter. Within the fixed income market for the first six months of 1997,
the high yield sector enjoyed some of the highest returns as investors continued
to stretch for yield. Emerging market debt and convertible bonds were also
strong contributors to overall return.
Bonds and stocks continue to post strong gains as we head into the second half
of the year. The main driver of the markets continues to be positive liquidity
flows. Most of the liquidity is finding its way into equities, but the money
that flows to fixed income continues to look for yield. Demand for higher
yielding securities is strong, and high yield, emerging market and convertible
bonds continue to outperform the broader market. The risk most investors are
willing to assume is credit, and that is reflected in the narrow spreads
relative to Treasuries. We believe that at some point credit spreads will widen
and the stronger long-term credits will do better. Issue selection remains key
in the Fund's structure.
The bond market reacted favorably to the Fed's decision to stand pat. We
continue to look for good corporate ideas, adding on to current portfolio
holdings and finding much of the value and opportunities in the Yankee sector.
Latin America continues to benefit from sound economic policies and markets that
today are more accessible to foreign investors, while Asian economies seem
likely to overcome their current growing pains. The Fund also has positions in
sectors, such as cable and telecom, that had lagged the market earlier this year
but we believe still offer long term value. We believe Microsoft's investment in
Comcast was a clear sign of the value and potential returns in information
technology. Prices in this sector have snapped back quite nicely in the second
quarter.
The Fund has been open a relatively short time, but we believe that it is well
structured for the current environment with good yield advantage, call
protection and diversification amongst its issues. The majority of the Fund's
holdings are in BB rated issues. This is because we are not as well compensated
in single B rated issues due to the tightness of the spread. In both segments we
believe we can add value using our research expertise to identify improving
credit trends. There is relatively little sensitivity to the direction of rates.
The upside potential comes from the underlying fundamentals for the credits,
which on the whole are improving.
Daniel J. Fuss is the portfolio manager for the High Yield Fixed Income Fund.
<PAGE>
LOOMIS SAYLES INVESTMENT GRADE FIXED
INCOME FUND
================================================================================
Cumulative Performance Inception to June 30, 1997
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Average Returns (%) - Period Ended June 30, 1997
- --------------------------------------------------------------------------------
Annualized
------------------------------
Year Since
to date 1 year 2 years 3 years Inception
Loomis Sayles Investment
Grade Fixed Income Fund(a) 3.8 14.4 12.5 14.4 14.4
Lipper BBB Rated
Bond Fund Index(b) 3.3 9.3 7.4 9.1 9.1
Lehman Brothers Gov't/Corp.
Bond Index(c) 2.7 7.8 6.2 8.3 8.3
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Dates Loomis Lipper Lehman
- --------------------------------------------------------------------------------
As of 7/1/94 10.00 10.00 10.00
Period Ended
9/30/94 10.08 10.07 10.05
12/31/94 09.97 10.06 10.09
3/31/95 10.75 10.54 10.59
6/30/95 11.82 11.28 11.28
9/30/95 12.27 11.55 11.49
12/31/95 12.99 12.09 12.03
3/31/96 12.91 11.84 11.75
6/30/96 13.07 11.89 11.80
9/30/96 13.60 12.15 12.01
12/31/96 14.40 12.59 12.38
3/31/97 14.23 12.49 12.27
6/30/97 14.96 12.99 12.71
- --------------------------------------------------------------------------------
Note: Past performance is not predictive of future performance.
(a): Inception date of the Loomis Sayles Investment Grade Fixed Income Fund is
July 1, 1994.
(b): Source: Lipper Analytical Services
(c): Lehman Brothers Government/Corporate Bond Index is a composite of
approximately 5,300 corporate and government issues with at least $100
million outstanding for government issues and $25 million for corporate,
and greater than 1 year maturity. The index returns have not been lowered
for ongoing management and operating expenses applicable to mutual fund
investments.
The U.S. bond market rebounded from a weak first quarter as a small drop in
interest rates and a weaker than expected economy produced strong performance
numbers across the board during the second quarter. The economy sizzled during
January and February prompting the Fed to raise rates 25 basis points at their
March meeting. The onset of an economic deceleration in the second quarter
persuaded investors that the Fed would not be inclined to tighten again until
the second half of 1997. In this environment, the Loomis Sayles Investment Grade
Fixed Income Fund returned 3.8%, beating the 2.7% return on the Lehman
Government/Corporate Bond Index.
The bond market has had a volatile year thus far. Mildly negative returns in the
first quarter were more than offset by strong gains in the second. In general,
bond yields mirrored the pace of business activity. In early 1997, the economy
surprised on the upside and bond yields backed up on fears of inflation. The Fed
reacted to an overheated economy with a 25 basis point tightening in late March
and Treasury yields surged across all maturities. A faltering stock market and
fears of further tightening spilled into the second quarter. However, May
brought news of a softer economy. Fears of inflation subsided and the stock
market roared toward recordbreaking highs. Accordingly, bond yields reversed
course and bonds recovered much of the value lost during the first three months
of 1997. A drop in interest rates and a weaker than expected economy produced
strong performance numbers across the board.
Although both stocks and bonds sold off considerably during March, the
subsequent recovery of the markets drove performance for the Investment Grade
Fixed Income Fund. The Fund has maintained its longer duration and Baa average
quality. The non-market related features of the Fund have proven beneficial in
an uncertain interest rate environment. As of June 30, the Fund held 17.1% of
its assets in international issues and 17.3% of its assets in Canadian issues.
The minor international areas for the Fund are Brazil, South Africa, Poland and
Thailand.
As of June 30, the Fund held approximately 15% in convertible securities.
Allocation to the convertible market has also had a positive impact on
performance. A strong stock market, buoyed by strong first quarter earnings and
mixed economic news, drove prices on converts during the first half of 1997,
especially during the second quarter.
The economic backdrop has not changed significantly since the first quarter. We
continue to incorporate securities with non-market-related features into the
portfolio. There is a degree of foreign exposure and a focus on credit and issue
specific factors that we believe serve as a buffer to general market movements.
Maintaining this diversity is essential as we continue to search for discounted,
longer maturity issues. We believe the Loomis Sayles Investment Grade Fixed
Income Fund is well structured for total return.
Daniel J. Fuss is the portfolio manager for the Investment Grade Fixed Income
Fund.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND
Portfolio of Investments -- as of June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Face
Amount Value (a)
- --------------------------------------------------------------------------------------------------------------
Municipal Bonds And Notes -- 98.0% of Total Net Assets
Air Transport -- 3.6%
<S> <C> <C>
San Francisco, California, City & County International Airport
Revenue, (AMBAC Insured), 6.200%, 5/01/04 ................... $300,000 $ 325,260
San Jose, California, Airport Revenue, (FGIC Insured),
5.875%, 3/01/07 ............................................. 200,000 215,718
---------------
540,978
---------------
Certificates of Participation -- 4.3%
Los Angeles, California, Equipment Acquisition Project L,
5.800%, 12/01/98 ............................................ 100,000 101,890
Mid-Peninsula, California, Regional Open Space,
5.500%, 9/01/07 ............................................. 100,000 100,192
Oceanside, California, Water Systems, (AMBAC Insured),
5.650%, 8/01/09 ............................................. 125,000 129,510
San Diego, California, School District Capital Improvements
Project, Series B, 6.000%, 7/01/02 .......................... 100,000 105,764
San Diego, California, University School District,
6.000%, 7/01/03 ............................................. 100,000 107,136
Santa Clara Valley, California, Water District Refunding &
Improvements, Series A, (FGIC Insured), 5.800%, 2/01/08 ..... 100,000 105,181
---------------
649,673
---------------
Correctional Facilities -- 6.0%
California State Public Works Board, 6.400%, 9/01/01,
prerefunded 9/01/97 (b) ..................................... 100,000 102,422
California State Public Works Board A, 6.700%, 9/01/97 ........ 50,000 50,224
California State Public Works Board Revenue,
5.200%, 4/01/07 ............................................. 500,000 510,070
Shafter California Joint Power Finance, 5.500%, 1/01/06 ....... 250,000 251,880
---------------
914,596
---------------
Education -- 11.4%
California State Public Works Board, Community College, 5.200%,
3/01/06 ..................................................... 200,000 201,818
Clovis, California, Unified School District, (FGIC Insured),
10.625%, 8/01/03 ............................................ 200,000 262,002
Clovis, California, Unified School District, (FGIC Insured),
Zero Coupon Bond, 8/01/04 ................................... 200,000 142,418
University of California Revenue, Series B,
6.500%, 9/01/03 ............................................. 300,000 326,022
University of California Revenue, Series B,
5.800%, 9/01/07 ............................................. 415,000 429,438
University of California Revenue, Series C,
5.000%, 9/01/08 ............................................. 175,000 174,769
University of California Revenue, Series C, (AMBAC Insured),
4.700%, 9/01/06 ............................................. 200,000 198,268
---------------
1,734,735
---------------
Electric & Gas -- 11.3%
Kings River Conservation District, California,
5.200%, 1/01/99 ............................................. 100,000 100,856
Northern California Power Agency, Public Revenue,
5.250%, 7/01/02 ............................................. 250,000 255,407
Riverside, California, Electric Revenue, 4.800%, 10/01/04 ..... 100,000 99,083
Riverside, California, Electric Revenue, (MBIA Insured),
5.200%, 10/01/08 ............................................ 230,000 232,305
Sacramento, California, Electric Revenue, 5.250%, 5/15/04 ..... 250,000 253,700
Sacramento, California, Power Authority, 6.000%, 7/01/02 ...... 500,000 520,335
Santa Clara, California, Electric Revenue, (FGIC Insured),
6.250%, 7/01/13 ............................................. 250,000 263,895
---------------
1,725,581
---------------
General Obligations -- 18.9%
California State, 5.000%, 3/01/01 ............................. 200,000 201,160
California State, 5.500%, 6/01/01 ............................. 500,000 519,540
California State, 5.400%, 4/01/04 ............................. 200,000 207,160
California State, 6.000%, 10/01/14 ............................ 250,000 259,620
California State, (FGIC Insured), 5.750%, 8/01/09 ............. 95,000 99,813
Los Angeles, California, 6.500%, 11/01/10 ..................... 350,000 372,988
San Diego, California, Open Space Park Facility, District One,
5.750%, 1/01/08 ............................................. 250,000 263,202
San Francisco, California, City & County, 6.200%, 6/15/08 ..... 300,000 315,021
San Francisco, California, County Library Facilities,
Series D, 6.100%, 6/15/07 ................................... 250,000 262,190
San Francisco, California, State Building, 5.000%, 10/01/05 ... 125,000 126,095
San Francisco, California, State Building Authority,
5.125%, 10/01/07 ............................................ 250,000 250,160
---------------
2,876,949
---------------
Government Agencies -- 3.3%
Federal Home Loan Mortgage Corporation,
8.060%, 7/10/06 ............................................. 500,000 503,830
---------------
Health/Hospital -- 3.5%
California Health Facilities Authority, Series A,
6.750%, 10/01/19 ............................................ 500,000 527,915
---------------
Public Works -- 2.0%
Commonwealth of Puerto Rico, Infrastructure,
7.300%, 7/01/97 ............................................. 25,000 25,000
San Francisco, California, City & County Redevelopment Project,
Series B, 5.200%, 8/01/08 ................................... 250,000 248,655
San Francisco, California, Public Utilities, Zero Coupon Bond,
11/01/15 .................................................... 100,000 22,715
---------------
296,370
---------------
Revenue -- 14.9%
California Housing Finance Agency, (MBIA Insured),
5.200%, 8/01/05 ............................................. 250,000 254,317
California Housing Finance Agency, (MBIA Insured),
5.850%, 8/01/09 ............................................. 300,000 309,873
California Pollution Control, 5.000%, 4/01/08 ................. 425,000 423,036
California Pollution Control, 6.850%, 12/01/08 ................ 100,000 106,327
Central Coast Water Authority, California, (AMBAC Insured),
5.500%, 10/01/00 ............................................ 100,000 103,805
Corona, California, Single Family, 5.500%, 11/01/10 ........... 400,000 403,336
Los Angeles State Building Authority, Lease Revenue,
5.375%, 5/01/06 ............................................. 300,000 308,481
San Francisco, California, Port Commission,
5.500%, 7/01/04 ............................................. 100,000 102,321
Stockton, California, Port District, 8.100%, 1/01/14 .......... 250,000 258,478
---------------
2,269,974
---------------
Transportation & Highway -- 2.2%
Orange County, California, Local Transportation Authority,
5.700%, 2/15/03 ............................................. 125,000 131,259
San Francisco Bay Area Rapid Transit Authority, (FGIC Insured),
5.450%, 7/01/08 ............................................. 200,000 207,230
---------------
338,489
---------------
Utilities -- 2.4%
Anaheim, California, Public Financing Authority Revenue, 2nd
Series, (FGIC Insured), 5.375%, 10/01/08 .................... 95,000 96,954
California Resource Efficiency Financing, First Resource
Efficiency, (AMBAC Insured), 5.400%, 7/01/04 ................ 150,000 157,103
East Bay, California, MUD Revenue, 5.800%, 6/01/03 ............ 100,000 106,179
---------------
360,236
---------------
Water & Sewer -- 14.2%
California State Department Water Resources Systems,
6.000%, 12/01/11 ............................................ 500,000 507,580
Los Angeles, California, Wastewater Systems, (FGIC Insured),
5.375%, 11/01/07 ............................................ 450,000 464,499
San Diego, California, Sewer Revenue, (AMBAC Insured),
4.750%, 5/15/06 ............................................. 125,000 124,121
San Francisco, California, City & County Public Utility Water
Revenue, Series A, 6.375%, 11/01/06 ......................... 500,000 548,195
San Francisco, California, Sewer Revenue, (AMBAC Insured),
6.000%, 10/01/11 ............................................ 500,000 522,295
---------------
2,166,690
---------------
Total Municipal Bonds and Notes (Identified Cost $14,709,598).. 14,906,016
---------------
TOTAL INVESTMENTS -- 98.0%
(IDENTIFIED COST $14,709,598) (c) ............................. $ $14,906,016
Cash, Receivables & Other Assets............................... 346,027
Liabilities.................................................... (44,951)
---------------
TOTAL NET ASSETS -- 100% ........................................ $ 15,207,092
===============
</TABLE>
(a) See Note 1.
(b) Prerefunded: Bonds which are prerefunded are collateralized by U.S. Treasury
securities which are held in escrow and are used to pay principal and
interest on tax-exempt issues and to retire the bonds in full at the
earliest refunding date.
(c) At June 30, 1997, the net unrealized appreciation on investments based on
cost of $14,709,598 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there is
an excess of value over tax cost and aggregate gross unrealized depreciation
for all securities in which there is an excess of tax cost over value were
$227,375 and $30,957, respectively, resulting in net unrealized appreciation
of $196,418.
Insurance Abbreviations:
AMBAC - American Municipal Bond Assurance Corporation
FGIC - Federal Guaranty Insurance Corporation
MBIA - Municipal Bond Insurance Association
Security Abbreviations:
MUD - Municipal Utilities District
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
LOOMIS SAYLES CORE FIXED INCOME FUND
Portfolio of Investments -- as of June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Face
Amount Value (a)
- --------------------------------------------------------------------------------------------------------
Bonds And Notes -- 97.4% of Total Net Assets
Aerospace -- 3.0%
<S> <C> <C>
Lockheed Corp., 9.000%, 1/15/22 ................................ $201,000 $ 231,264
--------------
Banking & Finance -- 12.3%
Capital One Bank, 5.950%, 2/15/01 .............................. 250,000 241,722
Chase Manhattan Corp., 7.625%, 1/15/03 ......................... 200,000 206,454
First America Bank Corp., 7.750%, 7/15/04 ...................... 150,000 154,671
NCNB Corp., 9.125%, 10/15/01 ................................... 100,000 108,557
Standard Federal Bank, 7.750%, 7/17/06 ......................... 220,000 227,685
--------------
939,089
--------------
Diversified Operations -- 1.9%
Norfolk Southern Corp., 7.800%, 5/15/27 ........................ 140,000 143,794
--------------
Electronics -- 4.5%
Philips Electronics NV, 8.375%, 9/15/06 ........................ 140,000 151,309
Texas Instruments, Inc., 8.750%, 4/01/07 ....................... 170,000 189,094
--------------
340,403
--------------
Entertainment -- 2.1%
Time Warner Entertainment Co., 7.250%, 9/01/08 ................. 160,000 157,954
--------------
Financial -- 11.9%
A T & T Capital Corp., 6.390%, 1/22/99 ......................... 225,000 225,432
Advanta Corp., 7.000%, 5/01/01 ................................. 100,000 97,795
Ford Motor Credit Co., 7.500%, 1/15/03 ......................... 108,000 110,874
General Motors Acceptance Corp., 5.625%, 2/15/01 ............... 27,000 26,019
General Motors Acceptance Corp., 6.800%, 4/17/01 ............... 200,000 200,400
McDonnell Douglas Financial Corp., 6.500%, 7/06/99 ............. 175,000 174,394
USL Capital Corp., 7.050%, 5/14/01 ............................. 75,000 75,610
--------------
910,524
--------------
Food - Processing -- 3.2%
Conagra, Inc., 9.750%, 3/01/21 ................................. 200,000 241,866
--------------
Government Agencies -- 15.1%
Federal Home Loan Mortgage Corp., 7.000%, 1/01/12 .............. 120,784 120,770
Federal Home Loan Mortgage Corp., 8.000%, 12/01/26 ............. 119,316 122,112
Federal Home Loan Mortgage Corp., 6.500%, 1/01/27 .............. 124,297 119,053
Federal National Mortgage Association, 9.500%, 11/01/10 ........ 68,375 71,964
Federal National Mortgage Association, 7.500%, 1/01/27 ......... 221,850 222,334
Government National Mortgage Association,
9.500%, 9/15/20 .............................................. 185,835 201,259
Government National Mortgage Association,
6.500%, 4/15/26 .............................................. 148,846 142,380
Government National Mortgage Association,
8.500%, 1/15/27 .............................................. 149,539 155,380
--------------
1,155,252
--------------
Holding Companies - Diversified -- 2.5%
ITT Corp., 7.400%, 11/15/25 .................................... 200,000 193,538
--------------
Medical - Hospital Management & Services -- 2.6%
Columbia Healthcare Corp., 6.125%, 12/15/00 .................... 200,000 196,200
--------------
Oil & Gas -- 3.3%
Columbia Gas Systems, Inc., 7.050%, 11/28/07 ................... 257,000 253,474
--------------
Paper Products -- 3.5%
Boise Cascade Corp., 9.980%, 3/27/03 ........................... 100,000 113,221
Boise Cascade Corp., 9.800%, 4/15/03 ........................... 135,000 151,828
--------------
265,049
--------------
Real Estate - Investment Trusts -- 1.6%
Meditrust Corp., 7.375%, 7/15/00 ............................... 125,000 126,586
--------------
Securities -- 2.9%
Lehman Brothers Holdings, Inc., 6.125%, 2/01/01 ................ 223,000 218,723
--------------
U.S. Government -- 21.3%
U.S. Treasury Bond, 7.250%, 5/15/16 ............................ 200,000 208,562
U.S. Treasury Note, 8.750%, 10/15/97 ........................... 405,000 408,734
U.S. Treasury Note, 6.375%, 7/15/99 ............................ 235,000 236,285
U.S. Treasury Note, 6.375%, 8/15/02 ............................ 330,000 329,898
U.S. Treasury Note, 7.250%, 8/15/04 ............................ 425,000 443,063
--------------
1,626,542
--------------
Utilities -- 5.7%
Commonwealth Edison Co., 7.375%, 1/15/04 ....................... 140,000 139,803
Gulf States Utilities Co., 6.410%, 8/01/01 ..................... 160,000 154,710
System Energy, Inc., 7.280%, 8/01/99 ........................... 140,000 139,867
--------------
434,380
--------------
Total Bonds and Notes (Identified Cost $7,396,260).............. 7,434,638
--------------
TOTAL INVESTMENTS -- 97.4%
(IDENTIFIED COST $7,396,260) (b) ............................... $ 7,434,638
Cash, Receivables & Other Assets................................ 234,895
Liabilities..................................................... (33,978)
--------------
TOTAL NET ASSETS -- 100% ......................................... $ 7,635,555
==============
</TABLE>
(a) See Note 1.
(b) At June 30, 1997, the net unrealized appreciation on investments based on
cost of $7,396,260 for federal income tax purposes was as follows: Aggregate
gross unrealized appreciation for all securities in which there is an excess
of value over tax cost and aggregate gross unrealized depreciation for all
securities in which there is an excess of tax cost over value were $50,366
and $11,988, respectively, resulting in net unrealized appreciation of
$38,378.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
LOOMIS SAYLES CORE GROWTH FUND
Portfolio of Investments -- as of June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares Value (a)
- -----------------------------------------------------------------------------------------------------
Common Stocks -- 96.1% of Total Net Assets
Aerospace -- 2.9%
<S> <C> <C>
Boeing Co. ................................................. 20,850 $ 1,106,353
----------------
Banks/Savings & Loans -- 2.7%
BankBoston Corp. ........................................... 14,000 1,008,875
----------------
Business Services -- 2.8%
Manpower, Inc. ............................................. 24,100 1,072,450
----------------
Chemicals - Major -- 7.8%
Monsanto Co. ............................................... 28,900 1,244,506
Potash Corp. of Saskatchewan ............................... 12,100 908,256
Praxair, Inc. .............................................. 14,500 812,000
----------------
2,964,762
----------------
Electrical Equipment -- 2.6%
Rockwell International Corp. (New) ......................... 16,400 967,600
----------------
Electronic Components -- 2.2%
Analog Devices, Inc. (b) ................................... 31,511 837,011
----------------
Financial Services -- 2.7%
Household International, Inc. .............................. 8,600 1,009,963
----------------
Freight Transportation -- 2.5%
Burlington Northern Santa Fe Corp. ......................... 10,600 952,675
----------------
Health Care - Drugs -- 13.6%
Abbott Laboratories ........................................ 19,700 1,314,975
Eli Lilly & Co. ............................................ 12,800 1,399,200
Glaxo Wellcome Plc, ADR (c) ............................... 32,100 1,342,181
Warner Lambert Co. ......................................... 8,700 1,080,975
----------------
5,137,331
----------------
Home Products -- 3.7%
Avon Products, Inc. ........................................ 19,700 1,390,081
----------------
Hotels & Restaurants -- 2.4%
McDonald's Corp. ........................................... 18,500 893,781
----------------
Insurance -- 3.6%
Travelers, Inc. ............................................ 21,366 1,347,393
----------------
Leisure -- 2.1%
Carnival Corp. ............................................. 19,100 787,875
----------------
Machinery -- 1.9%
Harnischfeger Industries, Inc. ............................. 17,200 713,800
----------------
Multi-Industry -- 6.5%
Minnesota Mining & Manufacturing Co. ....................... 12,300 1,254,600
United Technologies Corp. .................................. 14,700 1,220,100
----------------
2,474,700
----------------
Office Equipment -- 7.1%
Cabletron Systems, Inc. (b) ................................ 18,300 518,119
Gateway 2000, Inc. (b) ..................................... 23,200 752,550
International Business Machines Corp. ...................... 15,600 1,406,925
----------------
2,677,594
----------------
Oil - Independent Producers -- 2.6%
Abacan Resources Corp. (New) (b) ........................... 106,700 340,106
Ranger Oil Ltd. ............................................ 68,300 636,044
----------------
976,150
----------------
Oil - Major Integrated -- 4.6%
Texaco, Inc. ............................................... 8,700 946,125
USX Marathon Group ......................................... 28,000 808,500
----------------
1,754,625
----------------
Oil - Services -- 5.6%
Schlumberger Ltd. .......................................... 10,200 1,275,000
Transocean Offshore, Inc. .................................. 11,500 835,188
----------------
2,110,188
----------------
Paper Products -- 2.7%
Crown, Cork & Seal Co., Inc. ............................... 19,300 1,031,344
----------------
Retail - Food & Drug -- 3.1%
CVS Corp. .................................................. 23,300 1,194,125
----------------
Retail - Specialty -- 2.1%
Office Depot, Inc. (b) ..................................... 40,100 779,444
----------------
Telecommunications -- 6.3%
Bell Atlantic Corp. ........................................ 13,900 1,054,662
Lucent Technologies, Inc. .................................. 18,700 1,347,569
----------------
2,402,231
----------------
Textile & Apparel -- 2.0%
Liz Claiborne, Inc. ........................................ 16,400 764,650
----------------
Total Common Stocks (Identified Cost $31,695,558)........... 36,355,001
----------------
Face Amount
- --------------------------------------------------------------------------------
Short-Term Investment -- 2.9% of Total Net Assets
Repurchase Agreement with State Street Bank and Trust Co.,
dated 6/30/97 at 5.00% to be repurchased at $1,108,154 on
7/01/97 collateralized by $1,075,000 U.S. Treasury Bond
7.25%, due 5/15/16 with a value of $1,134,965 ............ $1,108,000 1,108,000
----------------
Total Short-Term Investment (Identified Cost $1,108,000).... 1,108,000
----------------
TOTAL INVESTMENTS -- 99.0%
(IDENTIFIED COST $32,803,558) (d) .......................... $ 37,463,001
Cash, Receivables & Other Assets............................ 10,385,788
Liabilities................................................. (10,022,012)
----------------
TOTAL NET ASSETS -- 100% ..................................... $ 37,826,777
================
</TABLE>
(a) See Note 1.
(b) Non-income producing security.
(c) An American Depository Receipt (ADR) is a certificate issued by a U.S. bank
representing the right to receive securities of the foreign issuer
described. The values of ADRs are significantly influenced by trading on
exchanges not located in the United States or Canada.
(d) At June 30, 1997, the net unrealized appreciation on investments based on
cost of $32,803,558 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there
is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost
over value were $5,223,858 and $564,415, respectively, resulting in net
unrealized appreciation of $4,659,443.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- -------------------------------------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
Portfolio of Investments -- as of June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Face
Amount Value (a)
- --------------------------------------------------------------------------------------------------------------------
Bonds And Notes -- 91.8% of Total Net Assets
NON-CONVERTIBLE BONDS -- 73.7%
Aerospace -- 0.2%
<S> <C> <C> <C>
Rohr Industries, Inc., 9.250%, 3/01/17 ................. $ 250,000 $ 241,875
----------------
Canadian -- 19.7%
Canadian Government, Zero Coupon Bond, 6/01/22 CAD 2,500,000 321,505
Canadian Government, 8.000%, 6/01/23 ................... CAD 5,850,000 4,808,451
Ontario Hydro, 8.900%, 8/18/22 ......................... CAD 1,350,000 1,186,583
Province of British Columbia, Zero Coupon Bond,
8/23/13 .............................................. CAD 11,700,000 2,696,122
Province of British Columbia, 8.000%, 9/08/23 .......... CAD 3,300,000 2,657,111
Province of British Columbia, Zero Coupon Bond,
8/23/24 .............................................. CAD 3,500,000 369,555
Province of Manitoba, 7.750%, 12/22/25 ................. CAD 5,295,000 4,188,026
Province of Ontario, Zero Coupon Bond, 7/13/22 ......... CAD 12,200,000 1,492,255
Province of Saskatchewan, Zero Coupon Bond,
5/30/25 .............................................. CAD 2,425,000 242,877
Province of Saskatchewan, 8.750%, 5/30/25 .............. CAD 1,950,000 1,700,256
Rogers Cablesystems Ltd., 9.650%, 1/15/14 .............. CAD 250,000 182,858
----------------
19,845,599
----------------
Communications -- 1.4%
Arch Communications Group, Inc., Zero Coupon Bond,
3/15/08 (b) .......................................... $ 600,000 318,000
Comcast Cable Communications,
8.875%, 5/01/17 (c) .................................. 1,000,000 1,090,010
----------------
1,408,010
----------------
Computer -- 2.9%
Apple Computer, Inc., 6.500%, 2/15/04 .................. 1,325,000 1,113,000
Digital Equipment Corp., 7.750%, 4/01/23 ............... 1,500,000 1,352,940
Unisys Corp., 9.750%, 9/15/16 .......................... 500,000 492,500
----------------
2,958,440
----------------
Electronics -- 1.5%
Pioneer Standard Electronics, Inc., 8.500%, 8/01/06 .... 1,000,000 1,036,250
Westinghouse Electric Corp., 7.875%, 9/01/23 ........... 500,000 463,380
----------------
1,499,630
----------------
Entertainment -- 2.6%
Time Warner Entertainment Co., 8.050%, 1/15/16 ......... 2,550,000 2,584,247
----------------
Environmental Services -- 0.2%
Envirotest Systems Corp., 9.625%, 4/01/03 .............. 250,000 220,000
----------------
Food & Beverage -- 1.3%
Borden, Inc., 7.875%, 2/15/23 .......................... 1,500,000 1,362,435
----------------
Foreign Government/Agency -- 11.4%
Escom, 11.000%, 6/01/08 ................................ ZAR 2,500,000 444,610
Government of New Zealand, 8.000%, 11/15/06 ............ NZD 2,500,000 1,821,322
Petroleos Mexicanos, Medium Term,
8.625%, 12/01/23 (c) ................................. USD 250,000 218,750
Republic of Argentina, 5.500%, 3/31/23 (b) ............. USD 3,000,000 2,077,500
Republic of Brazil, 10.125%, 5/15/27 ................... USD 4,277,000 4,116,612
Republic of Ireland, 8.250%, 8/18/15 ................... IP 450,000 781,292
Republic of South Africa, 12.000%, 2/28/05 ............. ZAR 10,500,000 2,064,351
----------------
11,524,437
----------------
Foreign Issuer -- 0.9%
Bangkok Bank Public Co. Ltd.,
8.375%, 1/15/27 (c) .................................. $ 1,000,000 956,180
----------------
Government Agencies -- 3.5%
Federal National Mortgage Association,
7.250%, 6/20/02 ...................................... NZD 3,600,000 2,476,930
Federal National Mortgage Association,
6.000%, 11/25/08 ..................................... USD 1,208,285 1,073,863
----------------
3,550,793
----------------
Home Builders -- 0.5%
Hovnanian Enterprises, 9.750%, 6/01/05 ................. $ 500,000 490,000
----------------
Hotels & Restaurants -- 0.6%
Flagstar Corp., 11.250%, 11/01/04 (d) .................. 1,500,000 615,000
----------------
Insurance -- 0.3%
Sun Life Canada US Capital Trust I,
8.526%, 5/29/49 (c) .................................. 250,000 259,345
----------------
Metals -- 0.1%
Midland Ross Corp., 6.000%, 2/15/07 .................... 121,000 87,120
----------------
Oil & Gas -- 0.8%
Maxus Energy Corp., 8.500%, 4/01/08 .................... 250,000 252,500
NGC Corporation Capital Trust I,
8.316%, 6/01/27 (c) .................................. 500,000 517,050
----------------
769,550
----------------
Paper Products -- 1.2%
Champion International, 7.350%, 11/01/25 ............... 1,250,000 1,181,723
----------------
Retail -- 5.9%
Dillon Read Structured Finance Corp.,
6.660%, 8/15/10 ...................................... 221,591 195,000
Dillon Read Structured Finance Corp.,
8.550%, 8/15/19 ...................................... 500,000 462,500
K Mart Corp., 7.950%, 2/01/23 .......................... 1,000,000 905,000
K Mart Pass Thru, 8.540%, 1/02/15 ...................... 803,081 754,896
K Mart Pass Thru, 9.350%, 1/02/20 ...................... 1,000,000 950,000
K Mart Pass Thru, 9.780%, 1/05/20 ...................... 500,000 500,000
Penn Traffic Co., 9.625%, 4/15/05 ...................... 2,750,000 1,457,500
Woolworth Corp., 8.500%, 1/15/22 ....................... 725,000 761,025
----------------
5,985,921
----------------
Steel -- 1.0%
Geneva Steel Co., 9.500%, 1/15/04 ...................... 1,250,000 1,000,000
----------------
Taxable Municipal -- 0.5%
Orange County, California Pension Obligation,
Zero Coupon Bond, 9/01/16 ............................ 2,000,000 458,260
----------------
Telecommunications -- 5.7%
Nextel Communications, Inc., Zero Coupon Bond,
8/15/04 (b) .......................................... 700,000 535,500
TCI Communications, Inc., 7.875%, 8/01/13 .............. 200,000 195,270
TCI Communications, Inc., 7.875%, 2/15/26 .............. 5,200,000 4,997,200
----------------
5,727,970
----------------
Textiles -- 0.5%
Fruit of the Loom, Inc., 7.375%, 11/15/23 .............. 500,000 461,700
Phillips Van Heusen Corp., 7.750%, 11/15/23 ............ 50,000 45,414
----------------
507,114
----------------
Tobacco -- 9.1%
Loews Corp., 7.000%, 10/15/23 .......................... 500,000 448,865
Philip Morris Cos., Inc., 7.750%, 1/15/27 .............. 3,100,000 3,039,984
RJR Nabisco, Inc., 7.625%, 9/15/03 ..................... 3,425,000 3,373,488
RJR Nabisco, Inc., 9.250%, 8/15/13 ..................... 2,250,000 2,310,457
----------------
9,172,794
----------------
Transportation -- 0.5%
American President Companies Ltd.,
7.125%, 11/15/03 ..................................... 500,000 487,910
----------------
Utilities -- 1.4%
Boston Edison Co., 7.800%, 3/15/23 ..................... 500,000 485,414
GGIB Funding Corp., 7.430%, 1/15/11 .................... 977,713 947,727
----------------
1,433,141
----------------
Total Non-Convertible Bonds
(Identified Cost $69,680,279) ........................ 74,327,494
----------------
CONVERTIBLE BONDS -- 18.1%
Aerospace -- 0.2%
Rohr Industries, Inc., 7.000%, 10/01/12 ................ 204,000 187,680
----------------
Auto & Related -- 0.3%
Exide Corp., 2.900%, 12/15/05 (c) ...................... 550,000 338,938
----------------
Broadcasting -- 0.3%
Comcast Corp., 1.125%, 4/15/07 ......................... 550,000 319,000
----------------
Canadian -- 0.1%
Rogers Communications, Inc., 2.000%, 11/26/05 .......... 250,000 141,250
----------------
Commercial Services -- 0.2%
Molten Metal Technology, Inc., 5.500%, 5/01/06 ......... 550,000 203,500
----------------
Computer -- 1.6%
Cray Research, Inc., 6.125%, 2/01/11 ................... 463,000 357,668
Maxtor Corp., 5.750%, 3/01/12 .......................... 407,000 280,830
Softkey International, Inc., 5.500%, 11/01/00 .......... 1,000,000 817,500
Streamlogic Corp., 14.000%, 10/07/98 (d) ............... 28,332 28,332
Telxon Corp., 5.750%, 1/01/03 .......................... 150,000 135,000
----------------
1,619,330
----------------
Electronics -- 1.4%
Cirrus Logic, Inc., 6.000%, 12/15/03 (c) ............... 200,000 144,750
Cyrix Corp., 5.500%, 6/01/01 (c) ....................... 300,000 246,000
Richardson Electronics Ltd., 7.250%, 12/15/06 .......... 300,000 233,250
Zenith Corp., 6.250%, 4/01/11 .......................... 907,000 757,345
----------------
1,381,345
----------------
Entertainment -- 2.3%
Metromedia International Group, Inc.,
6.500%, 8/04/02 ...................................... 100,000 85,500
Time Warner, Inc., Zero Coupon Bond, 12/17/12 .......... 5,750,000 2,256,875
----------------
2,342,375
----------------
Environmental Services -- 0.9%
Air & Water Technologies Corp., 8.000%, 5/15/15 ........ 300,000 246,000
Ogden Corp., 6.000%, 6/01/02 ........................... 250,000 233,750
Ogden Corp., 5.750%, 10/20/02 .......................... 500,000 463,750
----------------
943,500
----------------
Foreign Issuer -- 4.9%
Advanced Agro Public Co., 3.500%, 6/17/01 .............. 125,000 124,375
Bangkok Bank Public Co. Ltd., 3.250%, 3/03/04 .......... 500,000 386,250
Banpu Public Co., 2.750%, 4/10/03 ...................... 1,455,000 1,356,787
Burns Philp, 5.500%, 4/30/04 ........................... 1,000,000 860,000
Empresas ICA Sociedad, 5.000%, 3/15/04 ................. 250,000 197,500
Finance One, 2.000%, 8/31/01 ........................... 750,000 360,000
Loxley Public Co., 2.500%, 4/04/01 ..................... 700,000 609,000
Samsung Co., 0.250%, 6/26/06 ........................... 450,000 452,250
Siam Commercial Bank Public Co.,
3.250%, 1/24/04 ...................................... 225,000 142,875
Ssangyong Oil Refining Co., Inc., 3.000%, 12/31/04 ..... 250,000 170,313
Total Access Communication Ltd., 2.000%, 5/31/06 ....... 200,000 208,750
----------------
4,868,100
----------------
Health Care & Related -- 0.1%
Glycomed, Inc., 7.500%, 1/01/03 ........................ 100,000 86,000
----------------
Home Builders -- 0.3%
Schuler Homes, Inc., 6.500%, 1/15/03 ................... 400,000 315,000
----------------
Hotels & Restaurants -- 1.5%
Shoney's, Inc., Zero Coupon Bond, 4/11/04 .............. 3,589,000 1,543,270
----------------
Oil & Gas -- 0.2%
Noram Energy Corp., 6.000%, 3/15/12 .................... 250,000 220,000
----------------
Pharmaceutical -- 0.1%
NABI, Inc., 6.500%, 2/01/03 ............................ 125,000 102,031
----------------
Real Estate - Investment Trusts -- 2.4%
Federal Realty Investors Trust, 5.250%, 10/28/03 ....... 1,750,000 1,561,875
Meditrust Corp., 7.500%, 3/01/01 ....................... 150,000 164,062
Rockefeller Properties, Zero Coupon Bond, 12/31/00 ..... 650,000 443,625
Sizeler Property Investors, Inc., 8.000%, 7/15/03 ...... 250,000 240,625
----------------
2,410,187
----------------
Retail - Specialty -- 0.4%
General Host Corp., 8.000%, 2/15/02 .................... 500,000 407,500
----------------
Telecommunications -- 0.3%
Broadband Technologies, Inc., 5.000%, 5/15/01 .......... 350,000 252,000
----------------
Textiles -- 0.4%
Dixie Yarns, Inc., 7.000%, 5/15/12 ..................... 200,000 166,000
Fieldcrest Cannon, Inc., 6.000%, 3/15/12 ............... 250,000 198,750
----------------
364,750
----------------
Trucking & Leasing -- 0.2%
Worldway Corp., 6.250%, 4/15/11 ........................ 250,000 150,000
----------------
Total Convertible Bonds
(Identified Cost $18,675,735) ........................ 18,195,756
----------------
Total Bonds and Notes
(Identified Cost $88,356,014) ........................ 92,523,250
----------------
Shares
- --------------------------------------------------------------------------------------------------------------------
Common Stocks -- 0.2% of Total Net Assets
Computer -- 0.0%
Streamlogic Corp. (warrants) (d) ....................... 250 2,150
----------------
Utilities -- 0.2%
Niagara Mohawk Power Corp. ............................. 5,000 202,500
----------------
Total Common Stocks (Identified Cost $160,975) ......... 204,650
----------------
<PAGE>
- -------------------------------------------------------------------------------------------------------------------
Preferred Stocks -- 3.3% of Total Net Assets
Computer -- 0.3%
<S> <C> <C>
Unisys Corp., $3.75 .................................... 9,000 349,875
----------------
Entertainment -- 0.0%
Time Warner, Inc., 10.25% (e) .......................... 4 4,410
----------------
Hotels & Restaurants -- 0.1%
Flagstar Corp., $2.25 (d) .............................. 61,250 57,422
----------------
Metals -- 0.0%
Aluminum Company of America, $3.75 ..................... 100 6,400
----------------
Oil & Gas -- 0.2%
Western Gas Resources, Inc., $2.625 .................... 5,000 198,125
----------------
Trucking & Freight -- 0.4%
Arkansas Best Corp., $2.875 ............................ 13,000 429,000
----------------
Utilities -- 2.3%
Arizona Public Service Co., $2.40 ...................... 460 15,410
Central Louisiana Electric, Inc., 4.75% ................ 850 62,900
Del Marva Power & Light Co., 4.00% ..................... 434 23,761
Entergy Louisiana, Inc., 4.44% ......................... 830 47,829
Entergy New Orleans, Inc., 4.36% ....................... 90 5,108
Entergy New Orleans, Inc., 4.75% ....................... 2,876 171,410
MDU Resources Group, Inc., 5.10% ....................... 1,080 90,315
Nevada Power Co., 4.10% ................................ 12,265 213,104
Niagara Mohawk Power Corp., 3.60% ...................... 100 4,109
Niagara Mohawk Power Corp., 4.85% ...................... 2,850 156,750
Niagara Mohawk Power Corp., 6.50% ...................... 5,000 98,750
Niagara Mohawk Power Corp., 7.525% ..................... 57,131 1,260,453
Niagara Mohawk Power Corp., 9.75% ...................... 500 12,437
Northern States Power Co., $4.11 ....................... 100 6,400
Public Service Electric & Gas Co., 4.08% ............... 1,950 121,875
----------------
2,290,611
----------------
Total Preferred Stocks
(Identified Cost $3,032,791) ......................... 3,335,843
----------------
<PAGE>
Face
Amount
- --------------------------------------------------------------------------------------------------------------------
Short-Term Investment -- 0.8% of Total Net Assets
Repurchase Agreement with State Street Bank and Trust Co., dated 6/30/97 at
5.00% to be repurchased at $785,109 on 7/01/97 collateralized by $760,000
U.S. Treasury Bond 7.25%, due 5/15/16, with a value of $802,394 ............ $ 785,000 785,000
Total Short-Term Investment
(Identified Cost $785,000) ................................................. 785,000
-------------
TOTAL INVESTMENTS -- 96.1%
(IDENTIFIED COST $92,334,780) (f) ............................................ $ 96,848,743
Cash, Receivables & Other Assets ............................................. 4,190,945
Liabilities .................................................................. (246,068)
-------------
TOTAL NET ASSETS -- 100% ....................................................... $ 100,793,620
=============
</TABLE>
(a) See Note 1.
(b) Step Bond: Coupon rate is zero or below market rate for an initial period
and then increases to a higher coupon rate at a specified date and rate.
(c) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(d) Company filed for Chapter 11 Bankruptcy.
(e) Income may be received as additional securities.
(f) At June 30, 1997, the net unrealized appreciation on investments based on
cost of $92,334,780 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there
is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost
over value were $6,749,176 and $2,235,213, respectively, resulting in net
unrealized appreciation of $4,513,963.
Currency Terms:
CAD - Canadian Dollar
IP - Irish Punt
NZD - New Zealand Dollar
USD - U.S. Dollar
ZAR - South African Rand
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
Portfolio of Investments -- as of June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Face
Amount Value (a)
- ---------------------------------------------------------------------------------------------------------------
Bonds And Notes -- 81.7% of Total Net Assets
NON-CONVERTIBLE BONDS -- 52.4%
Aerospace -- 0.5%
<S> <C> <C> <C>
Rohr Industries, Inc., 9.250%, 3/01/17 ................. $ 125,000 $ 120,938
---------------
Canadian -- 4.6%
International Semi-Tech Corp., Zero Coupon Bond,
8/15/03 (b) .......................................... USD 500,000 297,500
Rogers Cablesystems Ltd., 9.650%, 1/15/14 .............. CAD 200,000 146,287
Rogers Cantel Mobile, Inc., 9.750%, 6/01/16 ............ USD 400,000 426,000
Rogers Communications, Inc., 10.500%, 2/14/06 .......... CAD 375,000 295,063
---------------
1,164,850
---------------
Communications -- 5.8%
Arch Communications Group, Inc., Zero Coupon Bond,
3/15/08 (b) .......................................... $1,425,000 755,250
Century Communications Corp., Zero Coupon Bond,
3/15/03 .............................................. 1,125,000 669,375
Paging Network, Inc., 8.875%, 2/01/06 .................. 50,000 45,500
---------------
1,470,125
---------------
Computer -- 4.2%
Digital Equipment Corp., 8.625%, 11/01/12 .............. 500,000 508,265
Digital Equipment Corp., 7.750%, 4/01/23 ............... 600,000 541,176
---------------
1,049,441
---------------
Electronics -- 1.5%
Westinghouse Electric Corp., 7.875%, 9/01/23 ........... 400,000 370,704
---------------
Environmental Services -- 1.3%
Envirotest Systems Corp., 9.625%, 4/01/03 .............. 375,000 330,000
---------------
Food & Beverage -- 1.5%
Borden, Inc., 7.875%, 2/15/23 .......................... 420,000 381,482
---------------
Foreign Government/Agency -- 10.4%
Kingdom of Jordan, 4.000%, 12/23/23 .................... 750,000 485,625
Petroleos Mexicanos, Medium Term,
8.625%, 12/01/23 (c) ................................. 250,000 218,750
Republic of Argentina, 5.500%, 3/31/23 (b) ............. 950,000 657,875
Republic of Brazil, 8.000%, 4/15/14 (b) ................ 112,065 90,003
Republic of Brazil, 10.125%, 5/15/27 ................... 1,200,000 1,155,000
---------------
2,607,253
---------------
Foreign Issuer -- 6.1%
PTC International Finance, Zero Coupon Bond,
7/01/07 (b) (c) ...................................... 750,000 455,625
TFM SA de CV, Zero Coupon Bond, 6/15/09 (b) (c) ........ 1,000,000 575,000
Transportacion Maritima Mexicana SA de CV,
10.000%, 11/15/06 .................................... 500,000 506,250
---------------
1,536,875
---------------
Hotels & Restaurants -- 0.6%
Flagstar Corp., 11.250%, 11/01/04 (d) .................. 350,000 143,500
---------------
Metals -- 0.3%
Midland Ross Corp., 6.000%, 2/15/07 .................... 113,000 81,360
---------------
Oil & Gas -- 0.8%
Chesapeake Energy Corporation, 8.500%, 3/15/12 ......... 200,000 188,500
---------------
Retail -- 1.0%
K Mart Pass Thru, 8.540%, 1/02/15 ...................... 157,660 148,200
Penn Traffic Co., 9.625%, 4/15/05 ...................... 175,000 92,750
---------------
240,950
---------------
Steel -- 0.7%
Geneva Steel Co., 11.125%, 3/15/01 ..................... 125,000 112,500
Geneva Steel Co., 9.500%, 1/15/04 ...................... 70,000 56,000
---------------
168,500
---------------
Telecommunications -- 6.7%
Intercel, Inc., Zero Coupon Bond, 2/01/06 (b) .......... 1,000,000 641,250
Intercel, Inc., Zero Coupon Bond, 5/01/06 (b) .......... 200,000 125,500
Nextel Communications, Inc., Zero Coupon Bond,
8/15/04 (b) .......................................... 300,000 229,500
Sprint Spectrum L.P., Zero Coupon Bond, 8/15/06 (b) .... 100,000 73,000
TCI Communications, Inc., 7.875%, 2/15/26 .............. 650,000 624,650
---------------
1,693,900
---------------
Textiles -- 0.7%
Phillips Van Heusen Corp., 7.750%, 11/15/23 ............ 200,000 181,654
---------------
Tobacco -- 2.5%
RJR Nabisco, Inc., 9.250%, 8/15/13 ..................... 615,000 631,525
---------------
Utilities -- 3.2%
Niagara Mohawk Power Corp., 7.875%, 4/01/24 ............ 750,000 713,587
Quezon Power Philippines Co., 8.860%, 6/15/17 .......... 100,000 100,000
---------------
813,587
---------------
Total Non-Convertible Bonds
(Identified Cost $13,074,350)......................... 13,175,144
---------------
CONVERTIBLE BONDS -- 29.3%
Auto & Related -- 1.5%
Exide Corp., 2.900%, 12/15/05 (c) ...................... 600,000 369,750
---------------
Broadcasting -- 1.7%
Comcast Corp., 1.125%, 4/15/07 ......................... 750,000 435,000
---------------
Commercial Services -- 0.4%
Molten Metal Technology, Inc., 5.500%, 5/01/06 ......... 300,000 111,000
---------------
Computer -- 6.9%
Apple Computer, Inc., 6.000%, 6/01/01 .................. 1,150,000 971,750
Cray Research, Inc., 6.125%, 2/01/11 ................... 200,000 154,500
Maxtor Corp., 5.750%, 3/01/12 .......................... 120,000 82,800
Softkey International, Inc., 5.500%, 11/01/00 .......... 600,000 490,500
Telxon Corp., 5.750%, 1/01/03 .......................... 25,000 22,500
---------------
1,722,050
---------------
Electronics -- 2.2%
Cirrus Logic, Inc., 6.000%, 12/15/03 (c) ............... 300,000 217,125
Cyrix Corp., 5.500%, 6/01/01 (c) ....................... 200,000 164,000
LTX Corp., 7.250%, 4/15/11 ............................. 50,000 29,375
Richardson Electronics Ltd., 7.250%, 12/15/06 .......... 100,000 77,750
Zenith Corp., 6.250%, 4/01/11 .......................... 91,000 75,985
---------------
564,235
---------------
Environmental Services -- 0.2%
Air & Water Technologies Corp., 8.000%, 5/15/15 ........ 75,000 61,500
---------------
Foreign Issuer -- 7.1%
Advanced Agro Public Co., 3.500%, 6/17/01 .............. 325,000 323,375
Bangkok Bank Public Co. Ltd., 3.250%, 3/03/04 .......... 450,000 347,625
Banpu Public Co., 2.750%, 4/10/03 ...................... 100,000 93,250
Empresas ICA Sociedad, 5.000%, 3/15/04 ................. 300,000 237,000
Loxley Public Co., 2.500%, 4/04/01 ..................... 125,000 108,750
MBI Finance, Zero Coupon Bond, 12/18/01 ................ 300,000 214,875
Sappi BVI Finance, 7.500%, 8/01/02 ..................... 200,000 189,750
Siam Commercial Bank Public Co., 3.250%, 1/24/04 ....... 250,000 158,750
Total Access Communication Ltd., 2.000%, 5/31/06 ....... 100,000 104,375
---------------
1,777,750
---------------
Home Builders -- 0.6%
Schuler Homes, Inc., 6.500%, 1/15/03 ................... 175,000 137,812
---------------
Hotels & Restaurants -- 2.1%
Shoney's, Inc., Zero Coupon Bond, 4/11/04 .............. 1,200,000 516,000
---------------
Metals -- 0.6%
Battle Mountain Gold Co., 6.000%, 1/04/05 .............. 200,000 161,500
---------------
Miscellaneous -- 0.8%
Veterinary Centers of America, Inc., 5.250%, 5/01/06 ... 295,000 209,450
---------------
Pharmaceutical -- 1.2%
NABI, Inc., 6.500%, 2/01/03 ............................ 375,000 306,094
---------------
Retail - Specialty -- 2.0%
Bell Sports Corp., 4.250%, 11/15/00 .................... 275,000 234,437
CML Group, Inc., 5.500%, 1/15/03 ....................... 145,000 103,313
General Host Corp., 8.000%, 2/15/02 .................... 100,000 81,500
Jacobson Stores, Inc., 6.750%, 12/15/11 ................ 100,000 86,250
---------------
505,500
---------------
Telecommunications -- 0.9%
Broadband Technologies, Inc., 5.000%, 5/15/01 .......... 315,000 226,800
---------------
Textiles -- 1.0%
Dixie Yarns, Inc., 7.000%, 5/15/12 ..................... 65,000 53,950
Fieldcrest Cannon, Inc., 6.000%, 3/15/12 ............... 250,000 198,750
---------------
252,700
---------------
Trucking & Leasing -- 0.1%
Worldway Corp., 6.250%, 4/15/11 ........................ 50,000 30,000
---------------
Total Convertible Bonds (Identified Cost $7,407,965).... 7,387,141
---------------
Total Bonds and Notes (Identified Cost $20,482,315)..... 20,562,285
Shares
- ---------------------------------------------------------------------------------------------------------------
Common Stocks -- 2.4% Of Total Net Assets
Computer -- 0.2%
The Learning Company, Inc. (e) ......................... 6,168 57,825
---------------
Utilities -- 2.2%
Eastern Utilities Associates ........................... 29,800 543,850
---------------
Total Common Stocks (Identified Cost $599,742).......... 601,675
---------------
- ---------------------------------------------------------------------------------------------------------------
Preferred Stocks -- 4.6% Of Total Net Assets
Cable -- 1.3%
Cablevision Systems Corp., 11.125% (f) ................. 3,169 319,252
---------------
Metals -- 1.5%
Bethlehem Steel Corp., $3.50 (c) ....................... 9,000 364,500
---------------
Oil & Gas -- 0.8%
Kelley Oil & Gas, $2.625 ............................... 750 18,188
McDermott, Inc., $2.20 ................................. 5,500 173,937
---------------
192,125
---------------
Trucking & Freight -- 0.7%
Arkansas Best Corp., $2.875 ............................ 5,500 181,500
---------------
Utilities -- 0.3%
Niagara Mohawk Power Corp., 3.60% ...................... 950 39,039
Niagara Mohawk Power Corp., 4.10% ...................... 200 9,400
Niagara Mohawk Power Corp., 7.525% ..................... 1,695 37,396
---------------
85,835
---------------
Total Preferred Stocks (Identified Cost $1,027,726)..... 1,143,212
---------------
Face
Amount
- ---------------------------------------------------------------------------------------------------------------
Short-Term Investment -- 17.3% of Total Net Assets
Repurchase Agreement with State Street Bank and Trust Co.,
dated 6/30/97 at 5.00% to be repurchased at $4,350,604 on
7/01/97 collateralized by $4,205,000 U.S. Treasury Bond
7.25%, due 5/15/16 with a value of $4,439,559 ............... $4,350,000 4,350,000
---------------
Total Short-Term Investment
(Identified Cost $4,350,000)................................. 4,350,000
---------------
TOTAL INVESTMENTS -- 106.0%
(IDENTIFIED COST $26,459,783) (g) ............................. $ 26,657,172
Cash, Receivables & Other Assets............................... 550,867
Liabilities.................................................... (2,052,775)
---------------
TOTAL NET ASSETS -- 100% ........................................ $ 25,155,264
===============
</TABLE>
(a) See Note 1.
(b) Step Bond: Coupon rate is zero or below market rate for an initial period
and then increases to a higher coupon rate at a specified date and rate.
(c) Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(d) Company filed for Chapter 11 Bankruptcy.
(e) Non-income producing security.
(f) Income may be received as additional securities.
(g) At June 30, 1997, the net unrealized appreciation on investments based on
cost of $26,459,783 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there is
an excess of value over tax cost and aggregate gross unrealized depreciation
for all securities in which there is an excess of tax cost over value were
$509,024 and $311,635, respectively, resulting in net unrealized
appreciation of $197,389.
Currency Terms:
CAD - Canadian Dollar
USD - U.S. Dollar
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
Portfolio of Investments -- as of June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Face
Amount Value (a)
- ---------------------------------------------------------------------------------------------------------------
Bonds And Notes -- 95.5% of Total Net Assets
NON-CONVERTIBLE BONDS -- 82.0%
Airlines -- 0.9%
<S> <C> <C> <C>
United Airlines Pass Thru, 7.870%, 1/30/19 ............. $ 500,000 $ 489,945
---------------
Auto & Related -- 1.9%
General Motors Corp., 7.400%, 9/01/25 .................. 1,100,000 1,080,673
---------------
Banking & Finance -- 2.6%
First Union Institutional Trust, 8.040%, 12/01/26 ...... 500,000 497,151
First Union Institutional Trust, 7.850%, 1/01/27 ....... 1,000,000 977,270
---------------
1,474,421
---------------
Canadian -- 17.3%
Canadian Government, Zero Coupon Bond, 6/01/21 ......... CAD 750,000 103,957
Canadian Government, 8.000%, 6/01/23 ................... CAD 3,135,000 2,576,837
MacMillan Bloedel, 7.700%, 2/15/26 ..................... USD 255,000 237,540
Ontario Hydro, 8.900%, 8/18/22 ......................... CAD 1,175,000 1,032,767
Province of British Columbia, Zero Coupon Bond,
8/23/13 .............................................. CAD 5,000,000 1,152,189
Province of British Columbia, Zero Coupon Bond,
6/09/14 .............................................. CAD 1,000,000 217,113
Province of British Columbia, Zero Coupon Bond,
9/05/20 .............................................. CAD 3,300,000 457,414
Province of British Columbia, Zero Coupon Bond,
8/19/22 .............................................. CAD 3,100,000 377,383
Province of British Columbia, 8.000%, 9/08/23 .......... CAD 750,000 603,889
Province of Manitoba, 7.750%, 12/22/25 ................. CAD 3,100,000 2,451,913
Province of Saskatchewan, 8.750%, 5/30/25 .............. CAD 750,000 653,945
---------------
9,864,947
---------------
Communications -- 4.0%
Arch Communications Group, Inc., Zero Coupon Bond,
3/15/08 (b) .......................................... $ 475,000 251,750
Comcast Cable Communications, 8.875%, 5/01/17 (c) ...... 500,000 545,005
US West Capital Funding, Inc., 7.900%, 2/01/27 ......... 1,500,000 1,515,300
---------------
2,312,055
---------------
Computer -- 0.3%
Seagate Technology, Inc., 7.875%, 3/01/17 .............. 200,000 199,890
---------------
Electronics -- 0.4%
Pioneer Standard Electronics, Inc., 8.500%, 8/01/06 .... 250,000 259,063
---------------
Entertainment -- 0.6%
Time Warner Entertainment Co., 8.050%, 1/15/16 ......... 365,000 369,902
---------------
Environmental Services -- 0.4%
Envirotest Systems Corp., 9.625%, 4/01/03 .............. 250,000 220,000
---------------
Food & Beverage -- 0.3%
Borden, Inc., 7.875%, 2/15/23 .......................... 200,000 181,658
---------------
Foreign Government/Agency -- 9.8%
Government of New Zealand, 8.000%, 11/15/06 ............ NZD 1,505,000 1,096,436
Government of Poland, 4.000%, 10/27/14 (b) ............. USD 1,650,000 1,408,687
Republic of Argentina, 5.500%, 3/31/23 (b) ............. USD 500,000 346,250
Republic of Brazil, 10.125%, 5/15/27 ................... USD 1,300,000 1,251,250
Republic of Ireland, 8.250%, 8/18/15 ................... IP 150,000 260,431
Republic of South Africa, 12.000%, 2/28/05 ............. ZAR 4,250,000 835,570
Republic of South Africa, 8.375%, 10/17/06 ............. USD 100,000 101,384
Republic of South Africa, 12.500%, 12/21/06 ............ ZAR 1,350,000 267,773
---------------
5,567,781
---------------
Foreign Issuer -- 1.3%
Bangkok Bank Public Co. Ltd., 8.375%, 1/15/27 (c) ...... $ 750,000 717,135
---------------
Government Agencies -- 3.5%
Federal National Mortgage Association, 7.250%, 6/20/02 NZD 1,700,000 1,169,661
Federal National Mortgage Association, 6.000%, 11/25/08 USD 906,214 805,398
---------------
1,975,059
---------------
Home Builders -- 0.7%
Pulte Corp., 7.000%, 12/15/03 .......................... 188,000 184,315
Pulte Corp., 7.300%, 10/24/05 .......................... 200,000 195,022
---------------
379,337
---------------
Insurance -- 0.4%
Sun Life Canada US Capital Trust I, 8.526%, 5/29/49 (c) 250,000 259,345
---------------
Oil & Gas -- 3.7%
Mitchell Energy and Development Corp., 6.750%, 2/15/04 500,000 475,060
NGC Corporation Capital Trust I, 8.316%, 6/01/27 (c) ... 100,000 103,410
Pan Pacific Industrial Investment PLC, Zero Coupon Bond,
4/28/07 (c) .......................................... 825,000 373,643
USX Marathon Group, 8.500%, 3/01/23 .................... 1,100,000 1,163,239
---------------
2,115,352
---------------
Paper Products -- 7.3%
Champion International, 7.350%, 11/01/25 ............... 1,850,000 1,748,949
Georgia Pacific Corp., 7.375%, 12/01/25 ................ 1,800,000 1,708,434
Mead Corp., 7.125%, 8/01/25 ............................ 250,000 230,598
Westvaco Corp., 7.000%, 8/15/23 ........................ 500,000 456,635
---------------
4,144,616
---------------
Real Estate - Investment Trusts -- 1.8%
Camden Property Trust, 7.000%, 11/15/06 ................ 500,000 488,025
Security Capital Trust, 8.650%, 5/15/16 ................ 500,000 535,020
---------------
1,023,045
---------------
Retail -- 2.4%
Dillon Read Structured Finance Corp., 8.375%, 8/15/15 .. 300,000 277,500
K Mart Pass Thru, 8.540%, 1/02/15 ...................... 246,344 231,563
Penn Traffic Co., 9.625%, 4/15/05 ...................... 625,000 331,250
Woolworth Corp., 8.500%, 1/15/22 ....................... 500,000 524,845
---------------
1,365,158
---------------
Securities -- 1.2%
Salomon, Inc., 6.750%, 8/15/03 ......................... 700,000 684,012
---------------
Steel -- 0.1%
Geneva Steel Co., 9.500%, 1/15/04 ...................... 100,000 80,000
---------------
Taxable Municipal -- 1.0%
Orange County, California Pension Obligation, Zero
Coupon Bond, 9/01/16 ................................. 2,500,000 572,825
---------------
Telecommunications -- 4.9%
TCI Communications, Inc., 7.875%, 8/01/13 .............. 100,000 97,635
TCI Communications, Inc., 7.875%, 2/15/26 .............. 2,805,000 2,695,605
---------------
2,793,240
---------------
Textiles -- 0.9%
Fruit of the Loom, Inc., 7.375%, 11/15/23 .............. 550,000 507,870
---------------
Tobacco -- 9.5%
Loews Corp., 7.000%, 10/15/23 .......................... 250,000 224,432
Philip Morris Cos., Inc., 7.750%, 1/15/27 .............. 2,500,000 2,451,600
RJR Nabisco, Inc., 7.625%, 9/15/03 ..................... 900,000 886,464
RJR Nabisco, Inc., 8.750%, 8/15/05 ..................... 150,000 152,243
RJR Nabisco, Inc., 9.250%, 8/15/13 ..................... 1,650,000 1,694,335
---------------
5,409,074
---------------
Transportation -- 1.0%
American President Companies Ltd., 7.125%, 11/15/03 .... 500,000 487,910
American President Companies Ltd., 8.000%, 1/15/24 ..... 100,000 92,497
---------------
580,407
---------------
U.S. Government -- 0.9%
U.S. Treasury Strips, Zero Coupon Bond, 8/15/20 ........ 2,500,000 505,900
---------------
Utilities -- 2.9%
Boston Edison Co., 7.800%, 3/15/23 ..................... 250,000 242,707
Comed Financing II, 8.500%, 1/15/27 (c) ................ 1,000,000 996,440
Commonwealth Edison Co., 4.750%, 12/01/11 .............. 143,000 107,514
GGIB Funding Corp., 7.430%, 1/15/11 .................... 310,916 301,381
---------------
1,648,042
---------------
Total Non-Convertible Bonds
(Identified Cost $44,639,810)......................... 46,780,752
---------------
CONVERTIBLE BONDS -- 13.5%
Aerospace -- 0.2%
Rohr Industries, Inc., 7.000%, 10/01/12 ................ 100,000 92,000
---------------
Chemicals - Major -- 0.3%
FMC Corp., 6.750%, 1/16/05 ............................. 170,000 163,200
---------------
Computer -- 1.0%
Apple Computer, Inc., 6.000%, 6/01/01 .................. 375,000 316,875
Maxtor Corp., 5.750%, 3/01/12 .......................... 150,000 103,500
Softkey International, Inc., 5.500%, 11/01/00 .......... 200,000 163,500
Streamlogic Corp., 14.000%, 10/07/98 (d) ............... 5,439 5,439
---------------
589,314
---------------
Electronics -- 0.2%
Richardson Electronics Ltd., 7.250%, 12/15/06 .......... 50,000 38,875
Zenith Corp., 6.250%, 4/01/11 .......................... 71,000 59,285
---------------
98,160
---------------
Entertainment -- 2.2%
Time Warner, Inc., Zero Coupon Bond, 12/17/12 .......... 3,150,000 1,236,375
---------------
Environmental Services -- 1.0%
Ogden Corp., 5.750%, 10/20/02 .......................... 600,000 556,500
---------------
Foreign Issuer -- 6.0%
Bangkok Bank Public Co. Ltd., 3.250%, 3/03/04 .......... 400,000 309,000
Banpu Public Co. 2.750%, 4/10/03 ....................... 500,000 466,250
Burns Philp, 5.500%, 4/30/04 ........................... 590,000 507,400
Empresas ICA Sociedad, 5.000%, 3/15/04 ................. 100,000 79,000
Finance One, 2.000%, 8/31/01 ........................... 650,000 312,000
Loxley Public Co., 2.500%, 4/04/01 ..................... 1,150,000 1,000,500
Samsung Co., 0.250%, 6/26/06 ........................... 245,000 246,225
Samsung Display Devices, 0.250%, 3/12/06 ............... 150,000 145,500
Siam Commercial Bank Public Co., 3.250%, 1/24/04 ....... 100,000 63,500
Ssangyong Oil Refining Co., Inc., 3.000%, 12/31/04 ..... 100,000 68,125
Yasuda Trust & Banking, 1.750%, 9/30/02 ................ 130,000 102,537
Yasuda Trust & Banking, 2.875%, 9/30/03 ................ 125,000 100,000
---------------
3,400,037
---------------
Hotels & Restaurants -- 0.4%
Shoney's, Inc., Zero Coupon Bond, 4/11/04 .............. 525,000 225,750
---------------
Oil & Gas -- 0.4%
Noram Energy Corp., 6.000%, 3/15/12 .................... 285,000 250,800
---------------
Real Estate - Investment Trusts -- 1.3%
Federal Realty Investors Trust, 5.250%, 10/28/03 ....... 835,000 745,238
---------------
Retail - Specialty -- 0.2%
CML Group, Inc., 5.500%, 1/15/03 ....................... 50,000 35,625
General Host Corp., 8.000%, 2/15/02 .................... 115,000 93,725
---------------
129,350
---------------
Trucking & Leasing -- 0.3%
Builders Transportation, Inc., 6.500%, 5/01/11 ......... 129,000 45,150
Worldway Corp., 6.250%, 4/15/11 ........................ 250,000 150,000
---------------
195,150
---------------
Total Convertible Bonds (Identified Cost $8,137,507).... 7,681,874
---------------
Total Bonds and Notes (Identified Cost $52,777,317)..... 54,462,626
---------------
Shares
- ---------------------------------------------------------------------------------------------------------------
Common Stocks -- 0.0% Of Total Net Assets
Computer -- 0.0%
Streamlogic Corp. (warrants) (d) ....................... 48 413
---------------
Total Common Stocks (Identified Cost $0)................ 413
---------------
- ---------------------------------------------------------------------------------------------------------------
Preferred Stocks -- 2.6% Of Total Net Assets
Banking & Finance -- 0.8%
Bankamerica Corp., 6.00% ............................... 2,000 193,250
Citicorp, 6.00% ........................................ 2,500 241,875
---------------
435,125
---------------
Chemicals - Major -- 0.0%
E.I. DuPont DeNemours & Co., $3.50 ..................... 200 11,600
---------------
Metals -- 0.4%
Aluminum Company of America, $3.75 ..................... 3,350 214,400
---------------
Utilities -- 1.4%
Arizona Public Service Co., $2.36 ...................... 246 8,241
Arizona Public Service Co., $2.40 ...................... 263 8,811
Central Louisiana Electric, Inc., 4.75% ................ 850 62,900
Connecticut Light & Power Co., $2.00 ................... 8,895 184,571
Connecticut Light & Power Co., $2.20 ................... 263 6,838
Dayton Power & Light Co., 3.75% ........................ 701 37,503
Del Marva Power & Light Co., 4.00% ..................... 350 19,162
Illinois Power Co., 4.08% .............................. 400 11,800
Illinois Power Co., 4.20% .............................. 100 3,200
MDU Resources Group, Inc., 5.10% ....................... 1,080 90,315
Niagara Mohawk Power Corp., 7.525% ..................... 1,000 22,062
Niagara Mohawk Power Corp., 9.50% ...................... 200 5,113
Northern Indiana Public Service Co., 4.25% ............. 1,950 114,075
Northern States Power Co., $4.08 ....................... 50 3,200
Northern States Power Co., $4.10 ....................... 100 6,500
Public Service Electric & Gas Co., 4.08% ............... 300 18,600
San Diego Gas & Electric Co., 4.50% .................... 100 1,400
Southern California Edison Co., 4.24% .................. 5,700 94,050
Southern California Edison Co., 4.32% .................. 8,080 124,230
---------------
822,571
---------------
Total Preferred Stocks (Identified Cost $1,382,987)..... 1,483,696
---------------
TOTAL INVESTMENTS -- 98.1%
(IDENTIFIED COST $54,160,304) (d) ...................... $ 55,946,735
Cash, Receivables & Other Assets (f).................... 1,199,383
Liabilities............................................. (84,211)
---------------
TOTAL NET ASSETS -- 100% ................................. $ 57,061,907
===============
</TABLE>
(a) See Note 1.
(b) Step Bond: Coupon rate is zero or below market rate for an initial period
and then increases to a higher coupon rate at a specified date and rate.
(c) Securities exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(d) Company filed for Chapter 11 Bankruptcy.
(e) At June 30, 1997, the net unrealized appreciation on investments based on
cost of $54,160,304 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there is
an excess of value over tax cost and aggregate gross unrealized depreciation
for all securities in which there is an excess of tax cost over value were
$2,515,986 and $729,555, respectively, resulting in net unrealized
appreciation of $1,786,431.
(f) Including deposits in foreign denominated currencies with a value of $33 and
a cost of $33.
Currency Terms:
CAD - Canadian Dollar
IP - Irish Punt
NZD - New Zealand Dollar
USD - U.S. Dollar
ZAR - South African Rand
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1997 (unaudited)
California Tax-
Free Income
Fund
----------------
ASSETS
Investments at value:
Securities ............................................. $ 14,906,016
Repurchase agreements .................................. 0
-------------
Total investments ........................................ 14,906,016
Cash ..................................................... 77,377
Foreign currency at value ................................ 0
Receivable for:
Shares of the Fund sold ................................ 0
Securities sold ........................................ 0
Dividend and interest -- net ........................... 247,918
Due from the adviser (Note 3) ............................ 20,732
Other assets ............................................. 0
Unamortized organization expenses (Note 1I) .............. 0
-------------
15,252,043
-------------
LIABILITIES
Payable for:
Securities purchased ................................... 0
Shares of the Fund redeemed ............................ 0
Foreign taxes .......................................... 0
Accrued expenses:
Management fees (Note 3) ............................... 18,709
Trustees' fees (Note 3B) ............................... 317
Accounting and administration (Note 3A) ................ 3,552
Other expenses ......................................... 22,373
-------------
44,951
-------------
NET ASSETS ................................................. $ 15,207,092
=============
Net Assets consist of:
Capital paid in ........................................ 14,958,473
Undistributed net investment income .................... 18,703
Accumulated net realized gain .......................... 33,498
Unrealized appreciation (or depreciation) on:
Investments .......................................... 196,418
Foreign currency transactions ........................ 0
-------------
NET ASSETS ................................................. $ 15,207,092
=============
Shares of beneficial interest outstanding, no par value .... 1,486,797
=============
Computation of offering price:
Net asset value and redemption price per share
(Net assets / shares of beneficial interest outstanding) . $ 10.23
=============
Identified cost of investments ............................. $ 14,709,598
=============
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
Investment
Core Core Fixed High Yield Grade
Fixed Income Growth Income Fixed Income Fixed Income
Fund Fund Fund Fund Fund
- ------------- ------------- ------------- ------------- -------------
$ 7,434,638 $ 36,355,001 $ 96,063,743 $ 22,307,172 $ 55,946,735
0 1,108,000 785,000 4,350,000 0
- ------------- ------------- ------------- ------------- -------------
7,434,638 37,463,001 96,848,743 26,657,172 55,946,735
59,541 562 643 328 90,160
0 0 0 0 33
0 10,363,616 0 0 0
0 0 2,354,368 239,729 93,547
153,254 11,065 1,830,469 299,104 1,005,765
12,923 7,719 5,465 11,706 9,878
0 2,826 0 0 0
9,177 0 0 0 0
- ------------- ------------- ------------- ------------- -------------
7,669,533 47,848,789 101,039,688 27,208,039 57,146,118
- ------------- ------------- ------------- ------------- -------------
0 9,971,635 0 2,007,854 0
0 0 81,000 0 0
0 175 0 0 0
8,682 32,681 121,979 26,560 54,071
317 317 317 317 317
587 2,239 9,113 1,228 4,582
24,392 14,965 33,659 16,816 25,241
- ------------- ------------- ------------- ------------- -------------
33,978 10,022,012 246,068 2,052,775 84,211
- ------------- ------------- ------------- ------------- -------------
$ 7,635,555 $ 37,826,777 $ 100,793,620 $ 25,155,264 $ 57,061,907
============= ============= ============= ============= =============
7,365,092 32,261,290 90,004,755 24,353,468 54,951,038
220,295 116,427 3,964,681 554,993 19,050
11,790 789,617 2,311,596 49,417 305,973
38,378 4,659,443 4,513,963 197,389 1,786,431
0 0 (1,375) (3) (585)
- ------------- ------------- ------------- ------------- -------------
$ 7,635,555 $ 37,826,777 $ 100,793,620 $ 25,155,264 $ 57,061,907
============= ============= ============= ============= =============
733,932 2,911,873 7,845,502 2,374,937 4,822,155
============= ============= ============= ============= =============
$ 10.40 $ 12.99 $ 12.85 $ 10.59 $ 11.83
============= ============= ============= ============= =============
$ 7,396,260 $ 32,803,558 92,334,780 26,459,783 54,160,304
============= ============= ============= ============= =============
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- -------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1997 (unaudited)
California Tax-
Free Income
Fund
---------------
INVESTMENT INCOME
Dividends .................................................. $ 0
Interest ................................................... 388,670
-----------
388,670
-----------
Expenses
Management fees (Note 3) ................................. 36,609
Trustees' fees and expenses (Note 3B) .................... 630
Accounting and administrative fees (Note 3A) ............. 7,847
Custodian ................................................ 19,008
Transfer agent ........................................... 10,315
Audit and tax services ................................... 6,400
Legal .................................................... 3,927
Printing ................................................. 1,200
Registration ............................................. 150
Amortization of organization expenses (Note 1I) .......... 0
Miscellaneous ............................................ 75
-----------
86,161
-----------
Less expenses assumed by the investment adviser (Note 3) . (38,569)
-----------
Net investment income ...................................... 341,078
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Realized gain (loss) on:
Investments -- net ....................................... 24,914
Foreign currency transactions -- net ..................... 0
-----------
Total realized gain (loss) on investments and foreign
currency transactions .................................. 24,914
-----------
Unrealized appreciation (depreciation) on:
Investments -- net ....................................... 23,091
Foreign currency transactions -- net ..................... 0
-----------
Total unrealized appreciation (depreciation) on
investments and foreign currency transactions .......... 23,091
-----------
Net gain (loss) on investments and foreign currency
transactions ............................................. 48,005
-----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................... $ 389,083
===========
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
Investment
Core Core Fixed High Yield Grade
Fixed Income Growth Income Fixed Income Fixed Income
Fund Fund Fund Fund Fund
- ---------------- ------------ ----------- ------------ ------------
$ 0 $ 163,312 $ 219,573 $ 40,625 $ 52,980
239,615 33,369 3,814,950 561,802 1,982,657
- ------------- ------------- ------------- ------------- -------------
239,615 196,681 4,034,523 602,427 2,035,637
- ------------- ------------- ------------- ------------- -------------
16,423 63,142 239,326 37,948 105,470
630 630 630 630 630
3,656 6,212 16,025 4,902 11,973
22,111 13,824 40,935 13,868 28,041
3,861 6,133 8,610 3,830 7,364
5,500 6,000 6,900 5,500 6,900
2,739 2,739 2,739 2,739 2,739
750 1,200 1,200 750 1,200
150 150 150 150 150
1,197 0 0 0 0
76 76 75 74 70
- ------------- ------------- ------------- ------------- -------------
57,093 100,106 316,590 70,391 164,537
- ------------- ------------- ------------- ------------- -------------
(35,742) (18,020) (5,465) (22,957) (19,521)
- ------------- ------------- ------------- ------------- -------------
218,264 114,595 3,723,398 554,993 1,890,621
- ------------- ------------- ------------- ------------- -------------
15,412 1,272,394 686,512 49,417 110,748
0 0 (6,136) 0 (592)
- ------------- ------------- ------------- ------------- -------------
15,412 1,272,394 680,376 49,417 110,156
- ------------- ------------- ------------- ------------- -------------
(49,995) 1,724,305 1,626,040 150,446 108,321
0 0 (1,375) (3) (585)
- ------------- ------------- ------------- ------------- -------------
(49,995) 1,724,305 1,624,665 150,443 107,736
- ------------- ------------- ------------- ------------- -------------
(34,583) 2,996,699 2,305,041 199,860 217,892
- ------------- ------------- ------------- ------------- -------------
$ 183,681 $ 3,111,294 $ 6,028,439 $ 754,853 $ 2,108,513
============= ============= ============= ============= =============
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
<TABLE>
- -------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
California Tax-Free Income Fund
-----------------------------------
Six Months Ended Year Ended
---------------- -----------------
June 30, 1997 December 31, 1996
---------------- -----------------
(unaudited)
<S> <C> <C>
FROM OPERATIONS
Net investment income ........................ $ 341,078 $ 485,327
Net realized gain (loss) on:
Investments ................................ 24,914 12,506
Unrealized appreciation (depreciation) on:
Investments ................................ 23,091 (7,191)
------------ ------------
Increase in net assets from operations ..... 389,083 490,642
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ........................ (331,448) (476,675)
Net realized gain on investments ............. 0 (6,098)
------------ ------------
(331,448) (482,773)
------------ ------------
FROM CAPITAL SHARES TRANSACTIONS
Proceeds from the sale of shares ............. 2,352,715 5,559,420
Net asset value of shares issued in connection
with the reinvestment of:
Dividends from net investment income ......... 53,643 91,383
Distributions from net realized gain on
investments ................................ 0 1,043
------------ ------------
2,406,358 5,651,846
Cost of shares redeemed ...................... (716,439) (80,000)
------------ ------------
Increase in net assets derived from capital
share transactions ......................... 1,689,919 5,571,846
------------ ------------
Total increase in net assets ............... 1,747,554 5,579,715
NET ASSETS
Beginning of period .......................... 13,459,538 7,879,823
------------ ------------
End of period ................................ $ 15,207,092 13,459,538
============ ============
UNDISTRIBUTED NET INVESTMENT INCOME
Beginning of period .......................... $ 9,074 $ 422
============ ============
End of period ................................ $ 18,703 $ 9,074
============ ============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares ............... 231,252 549,758
Issued in connection with the reinvestment of:
Dividends from net investment income ....... 5,288 9,033
Distributions from net realized gain on
investments .............................. 0 102
------------ ------------
236,540 558,893
Redeemed ..................................... (71,075) (7,835)
------------ ------------
Net change ................................... 165,465 551,058
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Core Fixed Income Fund Core Growth Fund
- ------------------------------------------------------- ------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
- -------------------------- ---------------------- -------------------- ---------------------
June 30, 1997 December 31, 1996* June 30, 1997 December 31, 1996
- -------------------------- ---------------------- -------------------- ---------------------
(unaudited) (unaudited)
<S> <C> <C> <C>
$ 218,264 $ 236,276 $ 114,595 $ 198,013
15,412 (3,622) 1,272,394 (334,718)
(49,995) 88,373 1,724,305 2,755,618
----------- ----------- ----------- -----------
183,681 321,027 3,111,294 2,618,913
----------- ----------- ----------- -----------
0 (234,245) 0 (198,587)
0 0 0 0
----------- ----------- ----------- -----------
0 (234,245) 0 (198,587)
----------- ----------- ----------- -----------
1,181,064 5,949,773 12,883,552 14,625,426
0 234,245 0 198,587
0 0 0 0
----------- ----------- ----------- -----------
1,181,064 6,184,018 12,883,552 14,824,013
0 0 (74,109) (2,947,260)
----------- ----------- ----------- -----------
1,181,064 6,184,018 12,809,443 11,876,753
----------- ----------- ----------- -----------
1,364,745 6,270,800 15,920,737 14,297,079
6,270,810 10 21,906,040 7,608,961
----------- ----------- ----------- -----------
$ 7,635,555 $ 6,270,810 $37,826,777 $21,906,040
=========== =========== =========== ===========
$ 2,031 $ 0 $ 1,831 $ 2,329
=========== =========== =========== ===========
$ 220,295 $ 2,031 $ 116,427 $ 1,831
=========== =========== =========== ===========
115,510 595,456 1,009,678 1,419,291
0 22,965 0 17,046
0 0 0 0
----------- ----------- ----------- -----------
115,510 618,421 1,009,678 1,436,337
0 0 (6,157) (287,257)
----------- ----------- ----------- -----------
115,510 618,421 1,003,521 1,149,080
=========== =========== =========== ===========
</TABLE>
*Commencement of operations, April 24, 1996.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
<TABLE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS continued
<CAPTION>
Fixed Income Fund
-----------------------------------
Six Months Ended Year Ended
---------------- -----------------
June 30, 1997 December 31, 1996
---------------- -----------------
(unaudited)
<S> <C> <C>
FROM OPERATIONS
Net investment income ....................... $ 3,723,398 $ 7,872,003
Net realized gain on:
Investments ............................... 686,512 3,866,845
Foreign currency transactions ............. (6,136) 0
Unrealized appreciation (depreciation) on:
Investments ............................... 1,626,040 (950,519)
Foreign currency transactions ............. (1,375) 0
------------ ------------
Increase in net assets from operations .... 6,028,439 10,788,329
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ....................... 0 (7,817,191)
Net realized gain on investments ............ 0 (2,382,970)
------------ ------------
0 (10,200,161)
------------ ------------
FROM CAPITAL SHARES TRANSACTIONS
Proceeds from the sale of shares ............ 11,061,071 59,500,558
Net asset value of shares issued in
connection with the reinvestment of:
Dividends from net investment income ...... 0 6,322,412
Distributions from net realized gain on
investments ............................. 0 2,076,057
------------ ------------
11,061,071 67,899,027
Cost of shares redeemed ..................... (8,041,899) (35,072,997)
------------ ------------
Increase in net assets derived from capital
share transactions ........................ 3,019,172 32,826,030
------------ ------------
Total increase in net assets .............. 9,047,611 33,414,198
NET ASSETS
Beginning of period ......................... 91,746,009 58,331,811
------------ ------------
End of period ............................... $100,793,620 $ 91,746,009
============ ============
UNDISTRIBUTED (OR DISTRIBUTION IN EXCESS OF)
NET INVESTMENT INCOME
Beginning of period ......................... $ 241,283 $ 36,669
============ ============
End of period ............................... $ 3,964,681 $ 241,283
============ ============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares .............. 900,051 4,931,492
Issued in connection with the reinvestment
of:
Dividends from net investment income ...... 0 521,906
Distributions from net realized gain on
investments ............................. 0 171,575
------------ ------------
900,051 5,624,973
Redeemed .................................... (650,020) (2,859,895)
------------ ------------
Net change .................................. 250,031 2,765,078
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
High Yield Fixed Income Fund Investment Grade Fixed Income Fund
- --------------------------------------- -------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
- ----------------- ------------------ ------------------ ------------------
June 30, 1997 December 31, 1996* June 30, 1997 December 31, 1996
- ----------------- ------------------ ------------------ ------------------
(unaudited) (unaudited)
<S> <C> <C> <C>
$ 554,993 $ 160,475 $ 1,890,621 $ 2,262,850
49,417 13,644 110,748 978,367
0 0 (592) 0
150,446 46,943 108,321 214,006
(3) 0 (585) 0
- -------------- -------------- -------------- --------------
754,853 221,062 2,108,513 3,455,223
- -------------- -------------- -------------- --------------
0 (160,804) (1,915,230) (2,263,848)
0 (13,677) 0 (705,324)
- -------------- -------------- -------------- --------------
0 (174,481) (1,915,230) (2,969,172)
- -------------- -------------- -------------- --------------
21,300,000 2,879,339 4,031,000 27,581,022
0 160,804 1,467,667 1,438,020
0 13,677 0 534,572
- -------------- -------------- -------------- --------------
21,300,000 3,053,820 5,498,667 29,553,614
0 0 (381,793) (103,745)
- -------------- -------------- -------------- --------------
21,300,000 3,053,820 5,116,874 29,449,869
- -------------- -------------- -------------- --------------
22,054,853 3,100,401 5,310,157 29,935,920
3,100,411 10 51,751,750 21,815,830
- -------------- -------------- -------------- --------------
$ 25,155,264 $ 3,100,411 $ 57,061,907 $ 51,751,750
============== ============== ============== ==============
$ 0 $ 0 $ 43,660 $ (19,837)
============== ============== ============== ==============
$ 554,993 $ 0 $ 19,050 $ 43,660
============== ============== ============== ==============
2,069,896 287,934 345,615 2,335,474
0 15,765 126,162 124,548
0 1,341 0 44,998
- -------------- -------------- -------------- --------------
2,069,896 305,040 471,777 2,505,020
0 0 (32,217) (8,853)
- -------------- -------------- -------------- --------------
2,069,896 305,040 439,560 2,496,167
============== ============== ============== ==============
</TABLE>
*Commencement of operations on June 5, 1996.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Year Ended December 31,
<TABLE>
<CAPTION>
California Tax-Free Income Fund
----------------------------------
1997* 1996 1995**
------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of period ........................ $ 10.19 $ 10.23 $ 10.00
------- ------- -------
Income from investment operations -
Net investment income ..................................... 0.23 0.46 0.26
Net realized and unrealized gain (loss) on investments .... 0.04 (0.04) 0.23
------- ------- -------
Total from investment operations ........................ 0.27 0.42 0.49
------- ------- -------
Less distributions -
Dividends from net investment income ...................... (0.23) (0.45) (0.26)
Distributions from net realized capital gains ............. 0.00 (0.01) 0.00
------- ------- -------
Total distributions ..................................... (0.23) (0.46) (0.26)
------- ------- -------
Net asset value, end of period .............................. $ 10.23 $ 10.19 $ 10.23
======= ======= =======
Total return (%)(a) ......................................... 2.7 4.1 4.9
Net assets, end of period (000) ............................. $15,207 $13,460 $ 7,880
Ratio of operating expenses to average net assets (%)(b) .... 0.65 0.65 0.65
Ratio of net investment income to average net assets (%)(b).. 4.66 4.58 5.30
Portfolio turnover rate (%) ................................. 16.0 17.5 18.4
Average commission rate (c) ................................. -- -- --
The ratios of operating expenses to average net assets
without giving effect to the voluntary expense limitations
described in Note 3 to the Financial Statements would have
been (%)(b) ............................................... 1.18 1.26 1.62
Without giving effect to the voluntary expense limitations
described in Note 3 to the Financial Statements net
investment income per share would have been: .............. $ 0.21 $ 0.40 $ 0.22
(a)Periods less than one year are not annualized.
(b)Annualized for periods less than one year.
(c)For fiscal years beginning on or after September 1, 1995, a fund is required to
disclose its average commission rate per share for trades upon which commissions are
charged. This rate generally does not reflect mark-ups, mark-downs or spreads on
shares traded on a principal basis.
*For the six months ended June 30, 1997. (unaudited)
**Commencement of operations on June 1, 1995.
+Commencement of operations on April 24, 1996.
++Commencement of operations on October 1, 1995.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
Core Fixed Income Fund Core Growth Fund
- ------------------------ -----------------------------------------
1997* 1996+ 1997* 1996 1995++
- ------- ------- ------- ------- -------
$ 10.14 $ 10.00 $ 11.48 $ 10.02 $ 10.00
- ------- ------- ------- ------- -------
0.29 0.40 0.04 0.10 0.02
(0.03) 0.13 1.47 1.47 0.02
- ------- ------- ------- ------- -------
0.26 0.53 1.51 1.57 0.04
- ------- ------- ------- ------- -------
0.00 (0.39) 0.00 (0.11) (0.02)
0.00 0.00 0.00 0.00 0.00
- ------- ------- ------- ------- -------
0.00 (0.39) 0.00 (0.11) (0.02)
- ------- ------- ------- ------- -------
$ 10.40 $ 10.14 $ 12.99 $ 11.48 $ 10.02
======= ======= ======= ======= =======
2.6 5.3 13.2 15.6 0.4
$ 7,636 $6,271 $37,827 $21,906 $ 7,609
0.65 0.65 0.65 0.65 0.65
6.64 6.21 0.91 1.10 1.36
43.8 33.8 41.9 96.5 22.4
-- -- $0.0578 $0.0278 --
1.74 1.46 0.79 0.89 1.43
$ 0.25 $ 0.35 $ 0.03 $ 0.08 $ 0.01
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS continued
Year Ended December 31,
<TABLE>
<CAPTION>
Fixed Income Fund
------------------------------------
1997* 1996 1994**
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period ..................... $ 12.08 $ 12.08 $ 10.00
-------- -------- --------
Income from investment operations -
Net investment income .................................. 0.47 0.91 0.53
Net realized and unrealized gain (loss) on investments . 0.30 0.27 2.21
-------- -------- --------
Total from investment operations ..................... 0.77 1.18 2.74
-------- -------- --------
Less distributions -
Dividends from net investment income ................... 0.00 (0.90) (0.52)
Distributions from net realized capital gains .......... 0.00 (0.28) (0.14)
-------- -------- --------
Total distributions .................................. 0.00 (1.18) (0.66)
-------- -------- --------
Net asset value, end of period ........................... $ 12.85 $ 12.08 $ 12.08
======== ======== ========
Total return (%)(a) ...................................... 6.4 9.8 27.4
Net assets, end of period (000) .......................... $100,794 $ 91,746 $ 58,332
Ratio of operating expenses to average net assets (%)(b) . 0.65 0.62 0.75
Ratio of net investment income to average net assets
(%)(b) ................................................. 7.78 7.97 8.15
Portfolio turnover rate (%) .............................. 17.3 90.4 76.0
The ratios of operating expenses to average net assets
without giving effect to the voluntary expense
limitations described in Note 3 to the Financial
Statements would have been (%)(b) ...................... 0.66 0.62 0.83
Without giving effect to the voluntary expense limitations
described in Note 3 to the Financial Statements net
investment income per share would have been: ........... $ 0.47 $ 0.91 $ 0.52
</TABLE>
(a) Periods less than one year are not annualized.
(b) Annualized for periods less than one year.
* For the six months ended June 30, 1997. (unaudited)
** Commencement of operations on January 17, 1995.
+ Commencement of operations on June 1, 1996.
++ Commencement of operations on July 1, 1994.
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
High Yield
Fixed Income Fund Investment Grade Fixed Income Fund
- --------------------- ----------------------------------------------------
1997* 1996+ 1997* 1996 1995 1994++
------- ------- ------- ------- ------- -------
$ 10.16 $ 10.00 $ 11.81 $ 11.56 $ 9.57 $ 10.00
------- ------- ------- ------- ------- -------
0.23 0.56 0.41 0.80 0.75 0.41
0.20 0.21 0.03 0.40 2.05 (0.43)
------- ------- ------- ------- ------- -------
0.43 0.77 0.44 1.20 2.80 (0.02)
------- ------- ------- ------- ------- -------
0.00 (0.56) (0.42) (0.79) (0.76) (0.41)
0.00 (0.05) 0.00 (0.16) (0.05) 0.00
------- ------- ------- ------- ------- -------
0.00 (0.61) (0.42) (0.95) (0.81) (0.41)
------- ------- ------- ------- ------- -------
$ 10.59 $ 10.16 $ 11.83 $ 11.81 $ 11.56 $ 9.57
======= ======= ======= ======= ======= =======
4.2 7.7 3.8 10.9 30.3 (0.3)
$25,155 $ 3,100 $57,062 $51,752 $21,816 $ 4,649
0.75 0.75 0.55 0.55 0.55 0.55
8.78 9.42 7.17 7.27 7.61 8.18
50.6 9.1 27.3 73.8 21.6 112.0
1.11 2.73 0.62 0.70 0.94 1.55
$ 0.22 $ 0.44 $ 0.41 $ 0.78 $ 0.71 $ 0.36
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
June 30, 1997
1. Loomis Sayles Investment Trust (the "Trust") consists of eight no-load mutual
funds (the "Funds").
The Trust was organized as a Massachusetts business trust under the laws of the
Commonwealth of Massachusetts on December 23, 1993. The Trust is a diversified,
open-end management investment company registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended (the "
1940 Act"), and the interests in which were registered for offer and sale,
effective March 7, 1997, under the Securities Act of 1933, as amended (the "1933
Act"). The Trust is authorized to issue an unlimited number of full and
fractional shares of beneficial interest in multiple series.
Each Fund is separately managed and has its own investment objective and
policies. Loomis, Sayles & Company, L.P. ("Loomis Sayles") is the investment
adviser of each fund. The Loomis Sayles Mortgage Securities Fund ceased
investment operations on June 20, 1997.
The Trust consists of the following Funds:
Loomis Sayles California Tax-Free Income Fund
Loomis Sayles Convertible Bond 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**
Loomis Sayles Investment Grade Fixed Income Fund
*Loomis Sayles Convertible Bond Fund has not been registered for offer and
sale under the 1933 Act. The information contained in this report does
not include the Convertible Bond Fund.
**As of June 30, 1997, Loomis Sayles Intermediate Duration Fixed Income
Fund had not commenced investment operations.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles for
investment companies.
A. SECURITY VALUATION -- Equity securities listed on an established securities
exchange or on the NASDAQ National Market System are normally valued at their
last sale price on the exchange where primarily traded or, if there is no
reported sale during the day, and in the case of over the counter securities not
so listed, at the last bid price. Long-term debt securities are valued by a
pricing service which determines valuations of normal institutional-size trading
units of long-term debt securities. Such valuations are determined using methods
based on market transactions for comparable securities and on various
relationships between securities which are generally recognized by institutional
traders. Short-term securities and debt securities with a remaining maturity of
60 days or less are valued at their amortized cost, which approximates market
value. Other securities for which current market quotations are not readily
available (including restricted securities, if any) are carried at fair value as
determined in good faith by the Board of Trustees, although the actual
calculations may be made by persons acting pursuant to the direction of the
Board of Trustees.
B. REPURCHASE AGREEMENTS -- The Funds engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Funds take
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Funds to resell, the obligation at an agreed-upon
price and time. This arrangement results in a fixed rate of return that is not
subject to market fluctuations during the Funds' holding period. The Funds,
through their custodian, receive delivery of the underlying securities
collateralizing repurchase agreements. It is the Funds' policy that the market
value of the collateral be at least equal to 100% of the repurchase price.
Loomis Sayles is responsible for determining that the value of the collateral is
at all times at least equal to the repurchase price. In connection with
transactions in repurchase agreements, if the seller defaults and the value of
the collateral declines or if the seller enters into insolvency proceedings,
realization of the collateral by the Funds may be delayed or limited.
C. FOREIGN CURRENCY TRANSLATION -- The books and records of each of the Funds
(including those Funds that invest in foreign securities) are maintained in
U.S. dollars. The value of securities, currencies and other assets and
liabilities denominated in currencies other than U.S. dollars are translated
into U.S. dollars based upon foreign exchange rates prevailing at the end of
the period. Purchases and sales of investment securities, income and expenses
are translated on the respective dates of such transactions.
The results of operations resulting from changes in foreign exchange rates on
investments are not isolated from fluctuations arising from changes in market
prices of securities held. All such fluctuations are included with net realized
and unrealized gain or loss from investments.
Net realized and unrealized gains and losses on foreign currency transactions
represent foreign exchange gains and losses from the sale of short-term
securities and holdings of foreign currencies, foreign currency gains and losses
between trade dates and settlement dates on investment securities transactions,
and the difference between the amounts of daily interest accruals on the books
of the Funds and the amounts actually received resulting from changes in
exchange rates on the payable date.
D. FORWARD FOREIGN CURRENCY CONTRACTS -- Each Fund that may invest in foreign
securities, may, upon the purchase or sale of a security denominated in a
foreign currency, enter into forward foreign currency contracts for the purchase
or sale, for a fixed amount of U.S. dollars, of the amount of foreign currency
involved in the underlying security transaction. In such cases, the Funds have
not realized currency gains or losses between the trade and settlement dates on
these security transactions.
In addition, a Fund may enter into a forward foreign currency contract to sell,
for a fixed amount, a foreign currency in which securities held are denominated
to hedge against anticipated declines in the value of the currency the adviser
believes may adversely affect the value of the Fund's portfolio securities.
Forward foreign currency contracts are valued at the forward rate and are
marked-to-market daily. The change in market value is recorded as unrealized
gain or loss. When the contract is closed, the Fund records a realized gain or
loss equal to the difference between the value of the contract at the time it
was opened and the value at the time it was closed.
The use of forward foreign exchange contracts does not eliminate fluctuations in
the underlying price of the Fund's investment securities, but does establish a
rate of exchange that can be achieved in the future. Although forward foreign
currency exchange contracts limit the risk of loss due to a decline in the value
of hedged currency, they also limit any potential gain that might result should
the value of the currency increase. In addition, the Funds could be exposed to
additional risks if the counterparties to the contracts are unable to meet the
terms of their contracts. At June 30, 1997, there were no open forward foreign
exchange contracts.
E. SECURITY TRANSACTIONS, RELATED INVESTMENT INCOME -- Security transactions are
accounted for on the trade date (the date the buy or sell is executed). Dividend
income is recorded on the ex-dividend date and interest income is recorded on
the accrual basis. Interest income is increased by the accretion of discount.
Discounts on zero coupon bonds, original issues, step bonds and payment in kind
bonds are accreted according to the effective interest method. In determining
net gain or loss on securities sold, the cost of securities has been determined
on the identified cost basis.
F. WHEN-ISSUED SECURITIES -- Delivery and payment for securities purchased on a
when-issued or delayed delivery basis can take place one month or more after the
date of the transactions. The securities so purchased are subject to market
fluctuation during this period. Each Fund instructs the custodian to segregate
assets in a separate account with a current value at least equal to the amount
of its when-issued purchase commitments. At June 30, 1997 the Funds held no such
commitments.
G. FEDERAL INCOME TAXES -- Each Fund is a separate entity for federal income tax
purposes. Each Fund intends to meet the requirements of the Internal Revenue
Code applicable to regulated investment companies, and to distribute to its
shareholders all of its net investment income and any net realized capital
gains. Accordingly, no provision for federal income tax or excise tax has been
made.
H. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The California Tax-Free Income
and the Investment Grade Fixed Income Funds pay their net investment income
monthly. The Core Fixed Income, Core Growth, Fixed Income and High Yield Fixed
Income Funds pay their net investment income to shareholders annually.
Distributions from net realized capital gains are declared and paid on an annual
basis by all of the funds. Income distributions and capital gain distributions
are determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences relate primarily to
differing treatments of income and gains on various investment securities held
by the Funds, timing differences and differing characterizations of
distributions made by the Funds.
I. ORGANIZATION EXPENSE -- In 1996, costs approximating $11,970 were incurred in
connection with the organization of the Core Fixed Income Fund. These costs were
paid by the Fund and are being amortized over 60 months.
2. PURCHASES AND SALES OF SECURITIES -- (excluding short-term investments) for
each Fund for the period ended June 30, 1997 were as follows:
<TABLE>
<CAPTION>
Purchases
----------------------------------------
U.S. Government Other
--------------- -----
<S> <C> <C>
California Tax-Free Income Fund ............................ $ 505,000 $ 3,807,767
Core Fixed Income Fund ..................................... 2,848,506 1,358,356
Core Growth Fund ........................................... 0 23,002,466
Fixed Income Fund .......................................... 35,623 19,532,340
High Yield Fixed Income Fund ............................... 4,270,781 20,390,301
Investment Grade Fixed Income Fund ......................... 26,717 18,601,410
Sales
----------------------------------------
U.S. Government Other
--------------- -----
California Tax-Free Income Fund ............................ $ 500,000 $ 1,761,207
Core Fixed Income Fund ..................................... 2,451,023 377,773
Core Growth Fund ........................................... 0 10,678,840
Fixed Income Fund .......................................... 456,563 15,821,650
High Yield Fixed Income Fund ............................... 4,201,031 1,822,296
Investment Grade Fixed Income Fund ......................... 9,292,551 4,942,016
</TABLE>
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES -- During the period
ended June 30, 1997, the Funds incurred management fees payable to Loomis
Sayles. Certain officers and directors of Loomis Sayles are also officers or
trustees of the Trust. Loomis Sayles' general partner is indirectly owned by New
England Investment Companies, L.P., a publicly-traded limited partnership whose
general partner is indirectly owned by Metropolitan Life Insurance Company.
Separate management agreements for each Fund in effect during the period ended
June 30, 1997 provided for fees as set forth below:
<TABLE>
<CAPTION>
Fees Earned
During the
Period Ended
Fund June 30, 1997(a) Annual Percentage Rate
---- ---------------- ----------------------
<S> <C> <C>
California Tax-Free Income Fund $ 36,609 0.50% of the Fund's weekly net assets
Core Fixed Income Fund ........ 16,423 0.50% of the Fund's weekly net assets
Core Growth Fund .............. 63,142 0.50% of the Fund's weekly net assets
Fixed Income Fund ............. 239,326 0.50% of the Fund's weekly net assets
High Yield Fixed Income Fund .. 37,948 0.60% of the Fund's weekly net assets
Investment Grade Fixed Income 105,470 0.40% of the Fund's weekly net assets
</TABLE>
(a) Prior to voluntary expense limitations.
Loomis Sayles voluntarily agreed, for an indefinite period, to reduce its
advisory fees and/or bear other expenses, to the extent necessary to limit the
total operating expenses of the Funds to the following percentage rate of the
Fund's average annual net assets:
Amount Fund
Waived/ Percentage
Fund Reimbursed Rate
---- ---------- ----------
California Tax-Free Income Fund .................. $38,569 0.65%
Core Fixed Income Fund ........................... 35,742 0.65%
Core Growth Fund ................................. 18,020 0.65%
Fixed Income Fund ................................ 5,465 0.65%
High Yield Fixed Income Fund ..................... 22,957 0.75%
Investment Grade Fixed Income Fund ............... 19,521 0.55%
Loomis Sayles may change or terminate these voluntary agreements at any time,
but the relevant prospectus would be supplemented at the time to describe the
change.
A. OTHER EXPENSES -- Through May 31, 1997, Loomis Sayles voluntarily performed
certain administrative, accounting and other services for the Trust. On June 1,
1997, the Trust contracted with State Street Bank and Trust Company ("State
Street") to perform certain of these services for the Trust. The amounts paid to
State Street for performing such functions for the series of the Trust (not
including Convertible Bond Fund) and are shown in the financial statements as a
component of Accounting and Administrative fees. Loomis Sayles voluntarily
continues to perform certain other of these services at its own expense.
B. TRUSTEES FEES AND EXPENSES -- The Trust does not pay any compensation
directly to its officers or trustees who are directors, officers or employees of
Loomis Sayles, Metropolitan Life Insurance Company or their affiliates. Each
independent trustee is compensated by the Trust at the rate of $10,000 per
annum, plus travel expenses for each meeting attended. These expenses are
allocated evenly among the Funds in the Trust.
4. CREDIT RISKS -- The High Yield Fixed Income Fund will invest at least 65%,
the Fixed Income Fund may invest up to 35%, and the Investment Grade Fixed
Income Fund may invest up to 10% of its total net assets in securities offering
high current income, which generally will be in the lower rating categories of
recognized rating agencies. These securities are regarded as predominantly
speculative with respect to capacity to pay interest and repay principal in
accordance with the terms of the obligations and will generally involve more
credit risk than securities in the higher-rated categories. In addition, the
trading market for high yield securities may be relatively less liquid than the
market for higher-rated securities.
5. CONCENTRATION -- The California Tax-Free Income Fund primarily invests in
debt obligations issued by the State of California, its political subdivisions,
agencies and public authorities to obtain funds for various public purposes. The
Fund is more susceptible to factors adversely affecting issuers of California
municipal securities than is a municipal bond fund that does not concentrate its
investments in the securities of issuers of a single state.
6. FOREIGN SECURITIES -- Each Fund (except the California Tax-Free Income
Fund) may purchase securities of foreign issuers. Investing in securities of
foreign companies and foreign governments involves special risks and
considerations not typically associated with investing in U.S. companies and
securities of the U.S. government. These risks include revaluation of
currencies and the risk of appropriation. Moreover, the markets for securities
of many foreign companies and foreign governments may be less liquid, and the
prices of such securities may be more volatile than those securities of
comparable U.S. companies and the U.S. government.
<PAGE>
========================================
LOOMIS SAYLES INVESTMENT TRUST
========================================
TRUSTEE
Timothy J. Hunt
OFFICERS
PRESIDENT
Daniel J. Fuss
EXECUTIVE VICE PRESIDENT TREASURER
Robert J. Blanding Mark W. Holland
VICE PRESIDENTS ASSISTANT TREASURER
William F. Camp Nicholas H. Palmerino
William J. Driscoll
Quentin P. Faulkner SECRETARY
Kathleen C. Gaffney Sheila M. Barry
Jeffrey L. Meade
Robert K. Payne ASSISTANT SECRETARIES
Mari J. Sugahara Margaret W. Chambers
Anthony J. Wilkins Laurie M. Gallagher
Bonnie S. Thompson
<PAGE>
================================================================================
LOOMIS SAYLES INVESTMENT TRUST
================================================================================
For Information about:
o Establishing an account
o Account procedures and status
o Exchanges
o Shareholder services
Phone 888-226-9699 (toll free)
INVESTMENT ADVISER
Loomis Sayles & Company, L.P. o One Financial Center o Boston, MA 02111
TRANSFER AND DIVIDEND PAYING AGENT AND CUSTODIAN OF ASSETS
State Street Bank and Trust Company o Boston, MA 02102
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P. o One Post Office Square o Boston, MA 02109
This report has been prepared for the shareholders of the Funds and is not
authorized for distribution to prospective investors in the Funds unless it
is accompanied or preceded by an effective prospectus.
