<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
Semi-Annual Report
March 31, 1999
CALIFORNIA TAX-FREE INCOME FUND
CORE FIXED INCOME FUND
CORE GROWTH FUND
FIXED INCOME FUND
HIGH YIELD FIXED INCOME FUND
INTERMEDIATE DURATION FIXED INCOME FUND
INVESTMENT GRADE FIXED INCOME FUND
LOOMIS SAYLES
INVESTMENT TRUST
A FAMILY OF INSTITUTIONAL MUTUAL FUNDS
One Financial Center - Boston, Massachusetts 02111
888-226-9699
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
[PHOTO]
Daniel J. Fuss
President
Dear Shareholders:
The bad news is that the last six months were relatively
fruitless for most areas of fixed income. The good news is
that the worst is behind us and things are looking brighter
on the horizon.
The degree of leverage in the bond market seems to be
increasing once again. Dealers continue to be cautious and
institutions that lend to hedge funds are still careful, but
slowly becoming more liberal than last fall. If this
continues, market liquidity will further improve and spreads
ought to narrow, allowing corporate yields to either fall faster or rise slower
than treasury yields. Either scenario represents favorable price movements for
corporate bonds.
Despite a floundering market, the Loomis Sayles Fixed Income Fund performed very
well in the past six months. Our motto has become "same bonds, new prices." The
investments made in undervalued bonds earlier in 1998 bore fruit in the last six
months. We had a strong fourth quarter as liquidity flowed back into the market,
helping restore a modicum of rationality on valuation spreads. These two factors
helped us produce positive performance relative to the rest of the market.
In the equity arena, growth stocks continue to be in favor over value. The
technological revolution is almost solely responsible for the market's momentum.
For the first quarter of 1999, only 172 stocks in the S&P 500 beat the
capitalization-weighted index average. These stocks represent 34% of the
equal-weighted index but 47% of the size-weighted index. On a size-weighted
basis, Standard & Poor's classifies over 20% of the outperforming stocks as
technology companies. Four of the seven largest contributors to the excess
return of the market were Microsoft, America Online, EMC Corp. and Cisco
Systems, all technology-related companies. Technology, with a return of nearly
12%, was the only industrial sector to exceed 8% for the first quarter.
There are some uncertainties for both the fixed income and equity markets. For
instance, we cannot predict the outcome of the tragic situation in the Balkans,
the effect of the Euro, the future of internet-related stocks or how soon or how
much interest rates will fluctuate. Our best course of action is precaution. As
a result of this uncertainty, we have positioned our funds so that they should
weather wider than normal market swings. The way in which we do this is to buy
as much as we can that is not directly related to the markets -- without giving
up potential performance. Looking forward,
1
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the funds are structured to take advantage of the above average spreads between
U.S. Treasuries and everything else that exists in the current market.
It has been an exciting six months for Loomis Sayles Investment Trust. Mutual
fund assets were $514 million at March 31. This represents a $47 million
increase over the past six months. We attribute most of this growth to the
Loomis Sayles Fixed Income and Investment Grade Fixed Income Funds. We are proud
of our accomplishments over the past six months and look forward to new
challenges and achievements for the '99 fiscal year.
Sincerely,
[SIG]
Daniel J. Fuss
President,
Loomis Sayles Investment Trust
2
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LOOMIS SAYLES CALIFORNIA
TAX-FREE INCOME FUND
- ------------------------------------------
The Loomis Sayles California Tax-Free Income Fund attempts to achieve a high
level of current income exempt from both federal income tax and California
personal income tax as consistent with preservation of capital. For the six
months ended March 31, 1999, the Fund had a total return of 1.53%, as compared
to the Fund's benchmark, the Lehman Brothers 5 Year Municipal Bond Index, total
return of 1.87%. For the same period, the average California intermediate
municipal debt fund, as measured by Lipper Analytical Services, had a total
return of 1.02%.
The Fund has earned its coupon during the last two quarters which by comparison
to the action of the Treasury market is an excellent result. The government
market experienced a lot of volatility and upward yield movement throughout the
yield curve. The 5 year Treasury moved from 4.21% to 5.10%, the 10 year from
4.41% to 5.23% and the 30 year from 4.97% to 5.62%. At the same time, municipal
yields moved higher at a more modest pace, and interestingly the one to five
year California curve moved to lower yields. The 5 year benchmark California
municipal moved from 3.90% to 3.83% while the 10 year was unchanged at 4.25% and
the 30 year moved from 4.86% to a 5.06%.
During the six month period, we sold one holding that had been pre-refunded for
October 1999 at a yield under 3.00%. We used the proceeds to purchase good
quality ten to twenty year maturities with calls in seven to nine years at
yields close to 5.00%.
Going forward, we feel the Fund is well positioned with a weighted average life
of 5.13 years and weighted average duration of 4.19 years.
ROBERT K. PAYNE IS THE PORTFOLIO MANAGER FOR THE CALIFORNIA TAX-FREE INCOME
FUND.
3
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<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
INCEPTION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31, 1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR 3 YEARS INCEPTION
<S> <C> <C> <C> <C>
Loomis Sayles California Tax-Free Income Fund 1.53 5.68 6.18 6.07
Lipper California Intermediate Municipal Bond Fund Index
(b) 1.11 5.57 6.21 5.98
Lehman Brothers 5 Year Municipal Bond Index (c) 1.87 5.71 5.84 5.80
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles Lipper California Lehman Brothers
California Intermediate 5 Year
Tax-Free Municipal Municipal
Income Fund Bond Fund Index(b) Bond Index(c)
6/30/95 $10,000.00 $10,000.00 $10,000.00
7/31/95 $10,048.00 $10,106.84 $10,122.00
8/31/95 $10,136.00 $10,216.59 $10,214.00
9/30/95 $10,189.00 $10,275.84 $10,240.00
10/31/95 $10,313.00 $10,395.30 $10,302.00
11/30/95 $10,438.00 $10,514.76 $10,396.00
12/31/95 $10,492.00 $10,576.92 $10,450.00
1/31/96 $10,595.00 $10,678.90 $10,554.00
2/29/96 $10,575.00 $10,641.02 $10,525.00
3/31/96 $10,466.00 $10,511.96 $10,451.00
4/30/96 $10,435.00 $10,504.81 $10,450.00
5/31/96 $10,419.00 $10,501.00 $10,446.00
6/30/96 $10,516.00 $10,571.88 $10,508.00
7/31/96 $10,597.00 $10,677.91 $10,584.00
8/31/96 $10,597.00 $10,676.89 $10,594.00
9/30/96 $10,687.00 $10,770.80 $10,681.00
10/31/96 $10,791.00 $10,880.81 $10,774.00
11/30/96 $10,969.00 $11,051.68 $10,914.00
12/31/96 $10,928.00 $11,011.36 $10,893.00
1/31/97 $10,947.00 $11,031.49 $10,893.00
2/28/97 $11,020.00 $11,107.57 $10,973.00
3/31/97 $10,920.00 $11,004.28 $10,853.00
4/30/97 $10,993.00 $11,058.21 $10,900.00
5/31/97 $11,121.00 $11,211.08 $11,034.00
6/30/97 $11,220.00 $11,309.95 $11,118.00
7/31/97 $11,468.00 $11,569.69 $11,313.00
8/31/97 $11,402.00 $11,479.49 $11,256.00
9/30/97 $11,501.00 $11,599.49 $11,356.00
10/31/97 $11,546.00 $11,630.75 $11,415.00
11/30/97 $11,613.00 $11,677.57 $11,450.00
12/31/97 $11,721.00 $11,828.21 $11,549.00
1/31/98 $11,834.00 $11,935.27 $11,654.00
2/28/98 $11,857.00 $11,946.66 $11,673.00
3/31/98 $11,857.00 $11,930.91 $11,683.00
4/30/98 $11,822.00 $11,859.20 $11,634.00
5/31/98 $11,960.00 $12,027.26 $11,774.00
6/30/98 $11,994.00 $12,061.76 $11,814.00
7/31/98 $12,040.00 $12,098.36 $11,855.00
8/31/98 $12,191.00 $12,277.14 $12,001.00
9/30/98 $12,342.00 $12,457.21 $12,124.00
10/31/98 $12,354.00 $12,442.05 $12,160.00
11/30/98 $12,377.00 $12,476.77 $12,182.00
12/31/98 $12,401.00 $12,486.36 $12,224.00
1/31/99 $12,519.00 $12,631.06 $12,354.00
2/28/99 $12,507.00 $12,574.31 $12,341.00
3/31/99 $12,531.00 $12,595.11 $12,452.00
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
REGISTRATION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31, 1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR REGISTRATION
<S> <C> <C> <C> <C>
Loomis Sayles California Tax-Free Income Fund 1.53 5.68 6.57
Lipper California Intermediate Municipal Bond Fund Index
(b) 1.11 5.57 6.98
Lehman Brothers 5 Year Municipal Bond Index (c) 1.87 5.71 6.67
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles Lipper California Lehman Brothers
California Intermediate 5 Year Municipal
Tax-Free Municipal Bond Bond Fund
Income Fund Fund Index(b) Index(c)
03/31/1997 $10,000.00 $10,000.00 $10,000.00
04/30/1997 $10,005.00 $10,049.00 $10,043.00
05/31/1997 $10,121.00 $10,188.00 $10,167.00
06/30/1997 $10,211.00 $10,277.00 $10,244.00
07/31/1997 $10,436.00 $10,514.00 $10,424.00
08/31/1997 $10,376.00 $10,432.00 $10,371.00
09/30/1997 $10,467.00 $10,541.00 $10,463.00
10/31/1997 $10,508.00 $10,570.00 $10,518.00
11/30/1997 $10,569.00 $10,612.00 $10,550.00
12/31/1997 $10,667.00 $10,749.00 $10,641.00
01/31/1998 $10,770.00 $10,847.00 $10,738.00
02/28/1998 $10,790.00 $10,858.00 $10,755.00
03/31/1998 $10,790.00 $10,843.00 $10,765.00
04/30/1998 $10,759.00 $10,778.00 $10,719.00
05/31/1998 $10,884.00 $10,931.00 $10,848.00
06/30/1998 $10,916.00 $10,963.00 $10,885.00
07/31/1998 $10,958.00 $10,996.00 $10,923.00
08/31/1998 $11,095.00 $11,159.00 $11,057.00
09/30/1998 $11,236.00 $11,323.00 $11,171.00
10/31/1998 $11,243.00 $11,309.00 $11,204.00
11/30/1998 $11,264.00 $11,341.00 $11,224.00
12/31/1998 $11,286.00 $11,350.00 $11,263.00
01/31/1999 $11,393.00 $11,482.00 $11,383.00
02/28/1999 $11,382.00 $11,430.00 $11,371.00
03/31/1999 $11,404.00 $11,449.00 $11,381.00
</TABLE>
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. Shares of the Fund were registered for offer and sale under the
Securities Act of 1933 on March 7, 1997. In accordance with SEC
regulations, performance information is provided for the period beginning
on March 7, 1997 ("Registration"). For the convenience of our long-term
shareholders, performance information is also provided for the period
beginning on June 1, 1995 ("Inception"). Since Lipper California
Intermediate Municipal Bond Fund Index & Lehman Brothers 5 Year Municipal
Bond Index performance data is not available coincident with the
registration date, comparative performance is presented from March 31,
1997.
(b): Source: Lipper Analytical Services.
(c): The Lehman Brothers 5 Year Municipal Bond Index is computed from prices on
approximately 6,100 bonds, with a maturity range of 4-6 years, consisting
of roughly 23% revenue bonds, 24% general obligation bonds, 41% insured
bonds, and 12% prerefunded bonds. The index returns have not been reduced
for ongoing management and operating expenses applicable to mutual fund
investments. Source: Lehman Brothers.
4
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LOOMIS SAYLES CORE FIXED INCOME FUND
- ------------------------------------------
The Loomis Sayles Core Fixed Income Fund attempts to achieve a high total
investment return through a combination of current income and capital
appreciation. For the six months ended March 31, 1999, the Fund had a total
return of -0.34% as compared to the Fund's benchmark, the Merrill Lynch
Corporate/Government Bond Index, total return of -0.97%. For the same period,
the average A rated corporate debt fund, as measured by Lipper Analytical
Services had a total return of 0.96%
During the past six months we have seen a continuation of strong economic growth
with low inflation. The Federal Reserve lowered the Federal Funds rate three
times restoring confidence and improving liquidity within the bond market. These
factors combined to produce a solid recovery in valuation within the corporate
and mortgage sectors.
The Fund's longer-term strategic position was little changed over the last six
months. However, we moved aggressively to take advantage of opportunities
created during the liquidity crunch. We added to both our corporate and mortgage
sector allocations as extraordinary values were created in issues with strong
fundamentals. Specifically, within the corporate sector we have added to our
energy sector holdings as we find these issues undervalued relative to similarly
rated bonds for those companies with strong balance sheets and the ability to
weather low oil prices. We also reduced the Fund's average maturity/duration
slightly in anticipation of higher interest rates. All of these changes had a
positive effect on performance during the last six months.
On the positive side the securities that contributed most to the Fund's
performance were Coastal Corp., Norfolk Southern, ConAgra and Lehman Brothers.
On the negative side Meditrust, Boise Cascade and Saga Petroleum were all weak
performers.
We believe that yield will be the key factor in performance in 1999. Our outlook
is based on the continued trend of strong economic growth combined with low
inflation. This economic background should result in stable interest rates and a
focus by investors on yield. We believe the Fund is well positioned to benefit
from this outlook and our expectation is for continued outperformance in the
corporate and mortgage sectors.
WILLIAM F. CAMP IS THE PORTFOLIO MANAGER FOR THE CORE FIXED INCOME FUND.
5
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<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
INCEPTION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31,
1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR INCEPTION
<S> <C> <C> <C>
Loomis Sayles Core Fixed Income Fund -0.34 6.13 7.48
Lipper Corp. A Rated Bond Fund Index (b) -0.61 5.05 7.70
Merrill Lynch Corp./Government Bond Index (c) -0.97 6.52 8.24
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles Lipper Corp.
Core A Rated Merrill Lynch
Fixed Bond Fund Corp./Government
Income Fund Index(b) Bond Index(c)
04/30/1996 $10,000.00 $10,000.00 $10,000.00
05/31/1996 $9,930.00 $9,978.45 $9,986.41
06/30/1996 $10,060.00 $10,102.75 $10,113.28
07/31/1996 $10,060.00 $10,123.83 $10,136.78
08/31/1996 $10,030.00 $10,095.72 $10,112.83
09/30/1996 $10,210.00 $10,287.51 $10,288.03
10/31/1996 $10,460.00 $10,539.44 $10,524.26
11/30/1996 $10,680.00 $10,754.94 $10,718.12
12/31/1996 $10,531.00 $10,633.75 $10,604.18
01/31/1997 $10,542.00 $10,649.76 $10,617.90
02/28/1997 $10,573.00 $10,687.43 $10,630.12
03/31/1997 $10,438.00 $10,540.11 $10,520.87
04/30/1997 $10,583.00 $10,688.59 $10,676.57
05/31/1997 $10,666.00 $10,788.07 $10,768.79
06/30/1997 $10,801.00 $10,933.92 $10,900.35
07/31/1997 $11,118.00 $11,285.87 $11,230.95
08/31/1997 $10,983.00 $11,142.80 $11,104.12
09/30/1997 $11,160.00 $11,333.33 $11,282.43
10/31/1997 $11,326.00 $11,479.30 $11,468.56
11/30/1997 $11,367.00 $11,533.36 $11,518.44
12/31/1997 $11,502.00 $11,655.56 $11,641.24
01/31/1998 $11,653.00 $11,794.62 $11,810.35
02/28/1998 $11,620.00 $11,774.47 $11,782.08
03/31/1998 $11,642.00 $11,818.52 $11,825.98
04/30/1998 $11,696.00 $11,872.86 $11,877.82
05/31/1998 $11,815.00 $12,001.43 $12,007.56
06/30/1998 $11,933.00 $12,107.98 $12,134.62
07/31/1998 $11,934.00 $12,110.07 $12,146.14
08/31/1998 $11,999.00 $12,218.03 $12,375.88
09/30/1998 $12,398.00 $12,490.97 $12,721.37
10/31/1998 $12,279.00 $12,333.13 $12,651.02
11/30/1998 $12,376.00 $12,467.25 $12,698.39
12/31/1998 $12,460.00 $12,507.59 $12,750.22
01/31/1999 $12,576.00 $12,613.79 $12,842.24
02/28/1999 $12,251.00 $12,333.94 $12,518.74
03/31/1999 $12,356.00 $12,414.85 $12,597.55
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
REGISTRATION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31,
1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR REGISTRATION
<S> <C> <C> <C>
Loomis Sayles Core Fixed Income Fund -0.34 6.13 7.99
Lipper Corp. A Rated Bond Fund Index (b) -0.61 5.05 8.53
Merrill Lynch Corporate/Government Bond Index
(c) -0.97 6.52 9.43
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles Lipper Corp. Merrill Lynch
Core Fixed A Rated Corporate/
Income Bond Fund Government
Fund Index(b) Bond Index(c)
03/31/1997 $10,000.00 $10,000.00 $10,000.00
04/30/1997 $10,039.00 $10,141.00 $10,148.00
05/31/1997 $10,118.00 $10,235.00 $10,235.00
06/30/1997 $10,246.00 $10,373.00 $10,360.00
07/31/1997 $10,547.00 $10,708.00 $10,674.00
08/31/1997 $10,419.00 $10,572.00 $10,553.00
09/30/1997 $10,586.00 $10,752.00 $10,723.00
10/31/1997 $10,744.00 $10,891.00 $10,900.00
11/30/1997 $10,783.00 $10,942.00 $10,947.00
12/31/1997 $10,911.00 $11,058.00 $11,064.00
01/31/1998 $11,054.00 $11,190.00 $11,225.00
02/28/1998 $11,024.00 $11,171.00 $11,198.00
03/31/1998 $11,044.00 $11,212.00 $11,239.00
04/30/1998 $11,095.00 $11,264.00 $11,289.00
05/31/1998 $11,208.00 $11,385.00 $11,412.00
06/30/1998 $11,320.00 $11,487.00 $11,533.00
07/31/1998 $11,321.00 $11,489.00 $11,543.00
08/31/1998 $11,382.00 $11,591.00 $11,761.00
09/30/1998 $11,761.00 $11,850.00 $12,089.00
10/31/1998 $11,648.00 $11,700.00 $12,023.00
11/30/1998 $11,741.00 $11,828.00 $12,067.00
12/31/1998 $11,820.00 $11,866.00 $12,117.00
01/31/1999 $11,930.00 $11,967.00 $12,204.00
02/28/1999 $11,622.00 $11,701.00 $11,897.00
03/31/1999 $11,721.00 $11,778.00 $11,971.00
</TABLE>
Note: Past performance is not predictive of future performance.
(a): Inception date of the Loomis Sayles Core Fixed Income Fund is April 24,
1996. Shares of the Fund were registered for offer and sale under the
Securities Act of 1933 on March 7, 1997. In accordance with SEC
regulations, performance information is provided for the period beginning
on March 7, 1997 ("Registration"). For the convenience of our long-term
shareholders, performance information is also provided for the period
beginning on April 24, 1996 ("Inception"). Since Lipper Corporate A Rated
Bond Fund Index & Merrill Lynch Corporate/Government Bond Index performance
data is not available coincident with the inception and registration dates,
comparative performance is presented from April 30, 1996 and March 31,
1997, respectively.
(b): Source: Lipper Analytical Services.
(c): The Merrill Lynch Corporate/Government Bond Index is comprised 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.
6
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LOOMIS SAYLES CORE GROWTH FUND
- ------------------------------------------
The Loomis Sayles Core Growth Fund attempts to achieve long-term growth of
capital. For the six months ended March 31, 1999, the Fund had a total return of
27.74%, as compared to the Fund's benchmark, the S&P 500 Index total return of
27.34%. For the same period, the average growth fund, as measured by Lipper
Analytical Services, had a total return of 28.16%.
The fourth quarter of 1998 began on a turbulent note as investors continued to
ponder the implications of the Russian default and the Long Term Capital
Management failure. The Federal Reserve's move on October 14th to lower interest
rates for the second time set a recovery in motion that proceeded almost without
interruption for the remainder of the year with most major indexes ending the
year at or above their July highs. For the quarter, the S&P 500 posted a 21.3%
gain while the full year recorded a 28.6% advance marking the fourth consecutive
year of better than 20% returns. As has been the case for most of this period,
1998's market was characterized by very narrow leadership. Size was critical --
the fifty largest S&P companies had a median gain of 33.6% for the year versus
5.1% for the remaining 450 names. Performance was also concentrated in
relatively few industry sectors with technology and communications services --
both of which were driven by the Internet -- being the leaders.
As the first quarter of 1999 began, investors were focused on Brazil where a
collapsing currency and capital flight were producing fears of still another
chapter in the global financial crisis that began in Thailand in August of 1997
and spread through southeast Asia, Korea, and on to Russia. World economic
recovery seemed further off than ever, and the market continued to favor the
same handful of large growth stocks that contributed so disproportionately to
1998's performance. While most managers have learned with varying degrees of
success to cope with this market phenomenon, which was driven by the unusual
combination of a strong US economy in the midst of worldwide recession and a
massive flow of funds into indexed and quasi-indexed portfolios, many of us,
particularly that minority who have experienced a bear market, have been
profoundly uneasy. Fortunately, the market started to change in March as
investors began to gather increasing amounts of anecdotal evidence that parts of
Asia were beginning to recover and that the Brazilian crisis was looking much
less serious than its predecessors. Coupled with an apparently successful OPEC
production-cutting agreement, this caused investors to begin to think of the
implications of a growing worldwide economy and rising rather than falling
commodity prices.
7
<PAGE>
The new quarter has begun with a continuation of the shift in leadership to
cyclicals and energy that began in March. Stocks in industries such as
machinery, paper, metals, and energy, which in some cases had lagged the market
for years, exploded to the upside even as former leaders in technology and
health care declined sharply. The Dow Jones Industrial Average far outperformed
the broader based S&P 500 and, particularly, the technology-laden NASDAQ.
Typically, when a shift in leadership of this magnitude occurs it is a harbinger
of market trends that are likely to remain in place for an extended interval. In
this case, we believe it is signaling the likelihood of a strengthening world
economy quite different from the recent past in which a world recession and a
strong dollar allowed the US to enjoy strong inflation free growth. In this new
environment, inflation and, eventually, interest rates will be higher,
price/earnings multiples will contract, and strong earnings growth will be
essential for good stock performance. We believe the portfolio is well
positioned for this environment, and we will endeavor to remain alert for new
opportunities.
QUENTIN P. FAULKNER IS THE PORTFOLIO MANAGER FOR THE CORE GROWTH FUND.
8
<PAGE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
INCEPTION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31,
1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR 3 YEARS INCEPTION
<S> <C> <C> <C> <C>
Loomis Sayles Core Growth Fund 27.74 23.56 23.03 20.18
Lipper Growth Fund Index (b) 28.99 17.52 23.89 22.52
S&P 500 Index (c) 27.34 18.46 28.08 27.60
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles
Core Lipper
Growth Growth S&P 500
Fund Fund Index(b) Index(c)
10/31/95 $10,000.00 $10,000.00 $10,000.00
11/30/95 $10,040.00 $10,338.48 $10,438.98
12/31/95 $10,042.00 $10,382.21 $10,640.05
1/31/96 $10,032.00 $10,633.11 $11,002.03
2/29/96 $10,213.00 $10,800.02 $11,104.39
3/31/96 $10,213.00 $10,849.90 $11,211.10
4/30/96 $10,443.00 $11,121.85 $11,376.39
5/31/96 $10,604.00 $11,319.11 $11,670.13
6/30/96 $10,533.00 $11,208.71 $11,714.30
7/31/96 $9,952.00 $10,602.58 $11,196.76
8/31/96 $10,283.00 $10,922.66 $11,432.94
9/30/96 $10,824.00 $11,533.08 $12,076.79
10/31/96 $11,085.00 $11,699.09 $12,409.52
11/30/96 $11,886.00 $12,438.31 $13,347.52
12/31/96 $11,609.00 $12,202.40 $13,083.04
1/31/97 $12,337.00 $12,838.52 $13,900.41
2/28/97 $12,236.00 $12,739.84 $14,009.35
3/31/97 $11,882.00 $12,156.70 $13,433.73
4/30/97 $12,408.00 $12,691.51 $14,235.70
5/31/97 $12,924.00 $13,569.63 $15,102.43
6/30/97 $13,136.00 $14,076.97 $15,780.12
7/31/97 $14,148.00 $15,243.81 $17,034.91
8/31/97 $13,511.00 $14,680.59 $16,080.43
9/30/97 $13,987.00 $15,519.76 $16,960.91
10/31/97 $13,532.00 $15,018.57 $16,394.46
11/30/97 $13,592.00 $15,363.63 $17,153.41
12/31/97 $13,430.00 $15,623.16 $17,448.00
1/31/98 $13,649.00 $15,728.37 $17,640.99
2/28/98 $14,656.00 $16,837.04 $18,913.35
3/31/98 $15,390.00 $17,557.16 $19,882.05
4/30/98 $15,697.00 $17,745.13 $20,081.89
5/31/98 $15,248.00 $17,307.90 $19,736.73
6/30/98 $15,719.00 $18,055.85 $20,538.60
7/31/98 $15,839.00 $17,864.20 $20,319.71
8/31/98 $13,528.00 $14,995.95 $17,386.48
9/30/98 $14,886.00 $15,995.52 $18,495.44
10/31/98 $15,511.00 $17,102.93 $20,000.25
11/30/98 $16,256.00 $18,121.90 $21,213.31
12/31/98 $18,026.00 $19,636.73 $22,434.38
1/31/99 $18,623.00 $20,474.45 $23,372.50
2/28/99 $17,997.00 $19,775.45 $22,646.11
3/31/99 $19,017.00 $20,633.07 $23,552.88
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
REGISTRATION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31,
1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR REGISTRATION
<S> <C> <C> <C>
Loomis Sayles Core Growth Fund 27.74 23.56 22.96
Lipper Growth Fund Index (b) 28.99 17.52 30.28
S&P 500 Index (c) 27.34 18.46 32.41
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles
Core Lipper
Growth Growth Fund S&P 500
Fund Index(b) Index(c)
03/31/1997 $10,000.00 $10,000.00 $10,000.00
04/30/1997 $10,000.00 $10,440.00 $10,597.00
05/31/1997 $10,415.00 $11,162.00 $11,242.00
06/30/1997 $10,586.00 $11,580.00 $11,747.00
07/31/1997 $11,403.00 $12,540.00 $12,681.00
08/31/1997 $10,889.00 $12,077.00 $11,971.00
09/30/1997 $11,272.00 $12,768.00 $12,627.00
10/31/1997 $10,906.00 $12,356.00 $12,205.00
11/30/1997 $10,954.00 $12,640.00 $12,770.00
12/31/1997 $10,823.00 $12,853.00 $12,990.00
01/31/1998 $11,000.00 $12,939.00 $13,134.00
02/28/1998 $11,812.00 $13,852.00 $14,081.00
03/31/1998 $12,404.00 $14,445.00 $14,802.00
04/30/1998 $12,651.00 $14,599.00 $14,952.00
05/31/1998 $12,289.00 $14,240.00 $14,694.00
06/30/1998 $12,669.00 $14,855.00 $15,291.00
07/31/1998 $12,766.00 $14,698.00 $15,127.00
08/31/1998 $10,903.00 $12,337.00 $12,943.00
09/30/1998 $11,998.00 $13,160.00 $13,769.00
10/31/1998 $12,501.00 $14,071.00 $14,889.00
11/30/1998 $13,101.00 $14,909.00 $15,793.00
12/31/1998 $14,528.00 $16,156.00 $16,703.00
01/31/1999 $15,009.00 $16,846.00 $17,401.00
02/28/1999 $14,505.00 $16,271.00 $16,860.00
03/31/1999 $15,326.00 $16,977.00 $17,534.00
</TABLE>
Note: Past performance is not predictive of future performance.
(a): Inception date of the Loomis Sayles Core Growth Fund is October 1, 1995.
Shares of the Fund were registered for offer and sale under the Securities
Act of 1933 on March 7, 1997. In accordance with SEC regulations,
performance information is provided for the period beginning on March 7,
1997 ("Registration"). For the convenience of our long-term shareholders,
performance information is also provided for the period beginning on
October 1, 1995 ("Inception"). Since Lipper Growth Fund Index & S&P 500
Index performance data is not available coincident with the registration
date, comparative performance is presented from March 31, 1997.
(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.
9
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
10
<PAGE>
LOOMIS SAYLES FIXED INCOME FUND
- ------------------------------------------
The Loomis Sayles Fixed Income Fund attempts to achieve high total investment
return through a combination of current income and capital appreciation. For the
six months ended March 31, 1999, the Fund had a total return of 7.23%, as
compared to the Fund's benchmark, the Lehman Brothers Government/Corporate Bond
Index, total return of -1.07%. For the same period, the average BBB rated debt
fund, as measured by Lipper Analytical Services, had a total return of 0.44%.
Our outperformance can be attributed, in large part, to a more favorable global
economic climate, an across the board compression of credit spreads, and
fortuitous issue selection.
Three consecutive cuts in short-term interest rates by the Federal Reserve
brought an end to the "flight to quality", causing investors to swap out of
particularly rich Treasuries into other segments of the market. Yield spreads
versus Treasuries narrowed dramatically across the credit spectrum, with lower
rated bonds performing the best. In our portfolios, it was just a case of same
bonds, different prices. We did not initiate any dramatic repositioning when
liquidity dried up last fall, rather, we attempted to capitalize on the deeply
discounted nature of the market by opportunistically buying issues of
companies/countries that we believed would weather the crisis the best.
The Fund was well positioned to benefit from this transition, particularly in
the Yankee sector, where we had been accumulating positions since the "Asian
Contagion" began. Korea had their sovereign rating and several of their
corporate issuer's debt ratings upgraded by the major debt rating agencies
because of the country's success in implementing fiscal reforms and stabilizing
their currency. The Fund's energy exposure, which has been hampered by soft
demand from Asia and a prolonged weakness in oil prices, rebounded nicely in
March as a result of a more favorable outlook for the sector. This exposure also
acts as a sound hedge against inflation should it materialize. In addition, the
Fund has maintained a considerable position in Canadian government & provincial
debt due to Canada's strong credit profile and the liquidity and call-protection
these bonds provide.
We remain constructive on the market at current levels. Although yield spreads
have tightened recently, they remain wide by historical standards, particularly
in the Yankee and commodity-sensitive sectors. These sectors, along with the
Telecommunications and Cable/Media continue to be areas of focus. The Fund
remains well diversified across 226 issues and more than 20 countries, while
offering call protection and a significant yield advantage over Treasuries.
DANIEL J. FUSS IS THE PORTFOLIO MANAGER FOR THE FIXED INCOME FUND.
11
<PAGE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
INCEPTION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31,
1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR 3 YEARS INCEPTION
<S> <C> <C> <C> <C>
Loomis Sayles Fixed Income Fund 7.23 3.07 10.46 13.36
Lipper BBB Rated Bond Fund Index (b) 0.63 3.95 7.47 9.11
Lehman Brothers Government/Corp. Bond Index (c) -1.07 6.55 7.75 8.95
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles Lehman Brothers
Fixed Lipper BBB Government/Corp.
Income Rated Bond Bond
Fund Fund Index(b) Index(c)
1/31/95 $10,000.00 $10,000.00 $10,000.00
2/28/95 $10,320.00 $10,228.48 $10,231.88
3/31/95 $10,500.00 $10,308.82 $10,300.50
4/30/95 $10,810.00 $10,494.19 $10,444.20
5/31/95 $11,380.00 $10,946.83 $10,881.93
6/30/95 $11,550.00 $11,029.52 $10,968.90
7/31/95 $11,540.00 $11,003.65 $10,926.62
8/31/95 $11,770.00 $11,165.50 $11,066.41
9/30/95 $12,100.00 $11,296.39 $11,178.81
10/31/95 $12,140.00 $11,446.88 $11,342.98
11/30/95 $12,440.00 $11,634.60 $11,529.72
12/31/95 $12,742.00 $11,826.63 $11,699.60
1/31/96 $12,995.00 $11,922.25 $11,772.43
2/29/96 $12,626.00 $11,671.44 $11,522.64
3/31/96 $12,563.00 $11,585.34 $11,425.89
4/30/96 $12,447.00 $11,511.38 $11,347.49
5/31/96 $12,563.00 $11,503.50 $11,328.38
6/30/96 $12,721.00 $11,635.32 $11,479.61
7/31/96 $12,700.00 $11,664.15 $11,506.39
8/31/96 $12,869.00 $11,658.36 $11,478.10
9/30/96 $13,269.00 $11,891.67 $11,682.14
10/31/96 $13,693.00 $12,177.10 $11,954.80
11/30/96 $14,211.00 $12,448.60 $12,174.94
12/31/96 $13,986.00 $12,328.17 $12,039.21
1/31/97 $14,032.00 $12,367.34 $12,053.50
2/28/97 $14,229.00 $12,437.89 $12,078.93
3/31/97 $14,067.00 $12,245.84 $11,935.38
4/30/97 $14,218.00 $12,426.74 $12,109.93
5/31/97 $14,565.00 $12,569.07 $12,222.94
6/30/97 $14,878.00 $12,756.46 $12,369.65
7/31/97 $15,556.00 $13,197.53 $12,748.09
8/31/97 $15,250.00 $13,022.71 $12,604.99
9/30/97 $15,698.00 $13,251.79 $12,803.16
10/31/97 $15,733.00 $13,386.38 $13,008.25
11/30/97 $15,851.00 $13,451.80 $13,076.72
12/31/97 $15,860.00 $13,596.12 $13,213.95
1/31/98 $16,049.00 $13,769.64 $13,400.24
2/28/98 $16,187.00 $13,764.59 $13,373.00
3/31/98 $16,427.00 $13,834.45 $13,414.23
4/30/98 $16,490.00 $13,893.70 $13,481.64
5/31/98 $16,502.00 $14,012.52 $13,626.55
6/30/98 $16,515.00 $14,115.34 $13,765.14
7/31/98 $16,372.00 $14,104.36 $13,776.12
8/31/98 $15,258.00 $14,001.86 $14,045.32
9/30/98 $15,789.00 $14,290.52 $14,446.93
10/31/98 $15,625.00 $14,114.26 $14,344.91
11/30/98 $16,460.00 $14,375.22 $14,430.38
12/31/98 $16,447.00 $14,410.96 $14,465.74
1/31/99 $16,723.00 $14,536.36 $14,568.51
2/28/99 $16,391.00 $14,221.85 $14,222.27
3/31/99 $16,930.00 $14,380.32 $14,292.84
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
REGISTRATION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31,
1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR REGISTRATION
<S> <C> <C> <C>
Loomis Sayles Fixed Income Fund 7.23 3.07 8.91
Lipper BBB Rated Bond Fund Index (b) 0.63 3.95 8.37
Lehman Brothers Government/Corp. Bond Index (c) -1.07 6.55 9.43
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles Lehman Brothers
Fixed Lipper BBB Government/Corp.
Income Rated Bond Bond
Fund Fund Index(b) Bond(c)
03/31/1997 $10,000.00 $10,000.00 $10,000.00
04/30/1997 $10,016.00 $10,148.00 $10,146.00
05/31/1997 $10,261.00 $10,265.00 $10,240.00
06/30/1997 $10,481.00 $10,418.00 $10,363.00
07/31/1997 $10,959.00 $10,778.00 $10,680.00
08/31/1997 $10,743.00 $10,636.00 $10,561.00
09/30/1997 $11,058.00 $10,823.00 $10,727.00
10/31/1997 $11,083.00 $10,933.00 $10,898.00
11/30/1997 $11,166.00 $10,987.00 $10,956.00
12/31/1997 $11,173.00 $11,105.00 $11,071.00
01/31/1998 $11,306.00 $11,247.00 $11,227.00
02/28/1998 $11,403.00 $11,242.00 $11,205.00
03/31/1998 $11,572.00 $11,300.00 $11,239.00
04/30/1998 $11,616.00 $11,348.00 $11,296.00
05/31/1998 $11,625.00 $11,446.00 $11,416.00
06/30/1998 $11,634.00 $11,529.00 $11,533.00
07/31/1998 $11,533.00 $11,520.00 $11,542.00
08/31/1998 $10,748.00 $11,436.00 $11,767.00
09/30/1998 $11,123.00 $11,672.00 $12,104.00
10/31/1998 $11,007.00 $11,528.00 $12,018.00
11/30/1998 $11,596.00 $11,741.00 $12,090.00
12/31/1998 $11,586.00 $11,771.00 $12,120.00
01/31/1999 $11,781.00 $11,873.00 $12,206.00
02/28/1999 $11,547.00 $11,617.00 $11,916.00
03/31/1999 $11,927.00 $11,745.00 $11,975.00
</TABLE>
Note: Past performance is not predictive of future performance.
(a): Inception date of the Loomis Sayles Fixed Income Fund is January 17, 1995.
Shares of the Fund were registered for offer and sale under the Securities
Act of 1933 on March 7, 1997. In accordance with SEC regulations,
performance information is provided for the period beginning on March 7,
1997 ("Registration"). For the convenience of our long-term shareholders,
performance information is also provided for the period beginning on
January 17, 1995 ("Inception"). Since Lipper BBB Rated Bond Fund Index &
Lehman Brothers Government/Corporate Bond Index performance data is not
available coincident with the inception and registration dates, comparative
performance is presented from January 31, 1995 and March 31, 1997,
respectively.
(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. Source: Lehman Brothers.
12
<PAGE>
LOOMIS SAYLES HIGH YIELD
FIXED INCOME FUND
- ------------------------------------------
The Loomis Sayles High Yield Fixed Income Fund attempts to achieve high total
investment return through a combination of current income and capital
appreciation. For the six months ended March 31, 1999, the Fund had a total
return of 14.94%, as compared to the Fund's benchmark, the Merrill Lynch High
Yield Master Index, total return of 3.98%. For the same period, the average high
current yield fund, as measured by Lipper Analytical Services, had a total
return of 5.74%.
Credit spreads have tightened considerably since the recessionary levels reached
during the global liquidity crisis last fall. Three consecutive cuts in
short-term interest rates by the Federal Reserve ended the "flight to quality"
and alleviated some of the pressure on capital starved regions in Southeast Asia
and Latin America. This had a positive impact on the Fund, which had suffered as
a result of the recent lack of liquidity in the high yield market. Our Yankee
positions firmed as capital flows began to flow freely again, which helped
stabilize currencies in Asia and Latin America and allowed them to begin to
rebuild their struggling economies. The stock market rebounded sharply off its
October lows as well, giving a boost to our significant convertible bond
exposure. The Fund's focus in the Telecommunications sector paid off, as demand
in this sector increased as a result of new technological advances, rapid
industry growth, and improving fundamentals. Commodity sensitive issues, and
energy related credits in particular, lagged as a result of the supply/demand
imbalances plaguing the oil industry. We began to see a firming of oil prices in
March however, and should inflationary pressures begin to materialize, this
exposure will provide attractive returns as well as a sound hedge against
inflation.
We remain constructive on the market at current levels. Although yield spreads
have tightened recently, they remain wide by historical standards, particularly
in the Yankee and commodity sensitive sectors. The portfolio continues to
emulate our "bond picking" style which focuses on individual credit specifics
while attempting to capitalize on secular changes in sectors/ sovereigns to
capture attractive yields and lock them in for extended periods of time.
DANIEL J. FUSS IS THE PORTFOLIO MANAGER FOR THE HIGH YIELD FIXED INCOME FUND.
13
<PAGE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
INCEPTION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31,
1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR INCEPTION
<S> <C> <C> <C>
Loomis Sayles High Yield Fixed Income Fund 14.94 -8.96 4.69
Lipper High Current Yield Fund Index (b) 6.44 -1.23 8.91
Merrill Lynch High Yield Master Index(c) 3.98 1.94 9.29
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles Lipper High Merrill Lynch
High Yield Current Yield High Yield
Fixed Income Fund Master
Fund Index(b) Index(c)
06/30/1996 $10,000.00 $10,000.00 $10,000.00
07/31/1996 $9,970.00 $10,045.50 $10,067.89
08/31/1996 $10,110.00 $10,207.65 $10,171.86
09/30/1996 $10,380.00 $10,473.78 $10,390.10
10/31/1996 $10,440.00 $10,523.71 $10,503.97
11/30/1996 $10,740.00 $10,705.05 $10,716.33
12/31/1996 $10,764.00 $10,836.96 $10,798.79
01/31/1997 $10,817.00 $10,944.42 $10,881.78
02/28/1997 $10,732.00 $11,128.18 $11,034.43
03/31/1997 $10,552.00 $10,887.14 $10,911.88
04/30/1997 $10,689.00 $10,979.86 $11,036.07
05/31/1997 $11,007.00 $11,270.40 $11,258.48
06/30/1997 $11,219.00 $11,463.47 $11,429.89
07/31/1997 $11,781.00 $11,769.24 $11,704.18
08/31/1997 $11,770.00 $11,796.00 $11,683.70
09/30/1997 $12,130.00 $12,081.71 $11,877.23
10/31/1997 $11,770.00 $12,034.34 $11,956.05
11/30/1997 $11,823.00 $12,121.71 $12,069.21
12/31/1997 $11,715.00 $12,264.60 $12,183.73
01/31/1998 $11,878.00 $12,502.88 $12,365.19
02/28/1998 $12,112.00 $12,620.72 $12,416.22
03/31/1998 $12,497.00 $12,803.64 $12,523.22
04/30/1998 $12,462.00 $12,843.60 $12,582.70
05/31/1998 $12,123.00 $12,829.41 $12,670.31
06/30/1998 $11,843.00 $12,851.92 $12,733.05
07/31/1998 $11,699.00 $12,939.59 $12,805.66
08/31/1998 $9,922.00 $11,953.55 $12,253.08
09/30/1998 $9,898.00 $11,881.88 $12,277.52
10/31/1998 $9,887.00 $11,612.14 $12,075.81
11/30/1998 $10,834.00 $12,294.02 $12,625.81
12/31/1998 $10,676.00 $12,255.63 $12,630.00
01/31/1999 $10,937.00 $12,477.60 $12,754.88
02/28/1999 $10,868.00 $12,427.39 $12,657.60
03/31/1999 $11,377.00 $12,646.49 $12,766.67
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
REGISTRATION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31,
1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR REGISTRATION
<S> <C> <C> <C>
Loomis Sayles High Yield Fixed Income Fund 14.94 -8.96 3.06
Lipper High Current Yield Fund Index (b) 6.44 -1.23 7.78
Merrill Lynch High Yield Master Index (c) 3.98 1.94 8.17
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles Merrill Lynch
High Yield Lipper High High Yield
Fixed Current Yield Master
Income Fund Bond Index(b) Index(c)
3/31/97 $10,000.00 $10,000.00 $10,000.00
4/30/97 $10,000.00 $10,085.00 $10,114.00
5/31/97 $10,297.00 $10,352.00 $10,318.00
6/30/97 $10,496.00 $10,529.00 $10,475.00
7/31/97 $11,021.00 $10,810.00 $10,727.00
8/31/97 $11,011.00 $10,835.00 $10,708.00
9/30/97 $11,348.00 $11,097.00 $10,886.00
10/31/97 $11,011.00 $11,054.00 $10,958.00
11/30/97 $11,061.00 $11,135.00 $11,062.00
12/31/97 $10,959.00 $11,266.00 $11,167.00
1/31/98 $11,112.00 $11,485.00 $11,333.00
2/28/98 $11,331.00 $11,593.00 $11,380.00
3/31/98 $11,691.00 $11,761.00 $11,478.00
4/30/98 $11,658.00 $11,797.00 $11,532.00
5/31/98 $11,342.00 $11,784.00 $11,612.00
6/30/98 $11,080.00 $11,806.00 $11,671.00
7/31/98 $10,945.00 $11,886.00 $11,737.00
8/31/98 $9,282.00 $10,980.00 $11,230.00
9/30/98 $9,260.00 $10,914.00 $11,253.00
10/31/98 $9,249.00 $10,667.00 $11,068.00
11/30/98 $10,141.00 $11,293.00 $11,572.00
12/31/98 $9,987.00 $11,258.00 $11,575.00
1/31/99 $10,232.00 $11,461.00 $11,690.00
2/28/99 $10,167.00 $11,416.00 $11,601.00
3/31/99 $10,643.00 $11,616.00 $11,701.00
</TABLE>
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. Shares of the Fund were registered for offer and sale under the
Securities Act of 1933 on March 7, 1997. In accordance with SEC
regulations, performance information is provided for the period beginning
on March 7, 1997 ("Registration"). For the convenience of our long-term
shareholders, performance information is also provided for the period
beginning on June 5, 1996 ("Inception"). Since Lipper High Current Yield
Fund Index & Merrill Lynch High Yield Master Index performance data is not
available coincident with the inception and registration dates, comparative
performance is presented from June 30, 1996 and March 31, 1997,
respectively.
(b): Source: Lipper Analytical Services.
(c): The Merrill Lynch High Yield Master Index consists of issues 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. Source: Merrill Lynch.
14
<PAGE>
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND
- ------------------------------------------
The Loomis Sayles Intermediate Duration Fixed Income Fund attempts to achieve
high total investment return through a combination of current income and capital
appreciation. For the six months ended March 31, 1999, the Fund had a total
return of 2.65%, as compared to the Fund's benchmark, the Lehman Brothers
Government/Corporate Intermediate Bond Index, total return of 0.10%. For the
same period, the average intermediate investment grade debt fund, as measured by
Lipper Analytical Services, had a total return of -0.45%.
The beginning of the fiscal year was marked by a massive, global "flight to
quality", triggered by recession in Asia, Russia's default, and the subsequent
de-coupling of markets that occurred as leveraged investors unwound their
positions into the market. Fortunately, the Federal Reserve Bank stepped in with
three consecutive cuts in interest rates, which provided much needed liquidity
for the market, and eventually brought an end to the panic. The yield on the 10
year Treasury fell to 4.16% at the height of the crisis in early October, but
would only test those levels for a short time, before retreating to 5.24% by
March 31, 1999. Diminished expectations of future interest rate cuts, rising
Japanese bond yields, and a stronger than expected domestic economy led
investors to swap out of particularly rich Treasuries into other segments of the
market during the first quarter.
The Fund was positioned well to benefit from this transition. Mortgage and asset
backed exposure had a positive impact on performance, outperforming similar
duration Treasuries on a relative basis. Our modest Yankee allocation provided a
boost to performance. One notable performer in this group was Korea Development
Bank, which rallied after being upgraded to investment grade status. RJR Nabisco
bonds rallied following the company's announcement that it planned to spin off
its domestic tobacco unit, and sell off its international tobacco unit, which
will allow the company to de-leverage and avoid possible future costly
litigation. In addition, our exposure to the REIT sector proved beneficial as
REIT spreads rallied in the first quarter, following a disappointing 1998.
We are comfortable with the overall structure of the Fund and will continue to
focus on undervalued bonds with call protection that offer good yield advantage.
The duration of the Fund remains longer than that of the benchmark index to
capture the higher yield offered by extending out over the corporate curve and
to enhance capital appreciation should yield spreads narrow.
ANTHONY J. WILKINS IS THE PORTFOLIO MANAGER FOR THE INTERMEDIATE DURATION FIXED
INCOME FUND.
15
<PAGE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
INCEPTION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31, 1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR INCEPTION
<S> <C> <C> <C>
Loomis Sayles Intermediate Duration Fixed Income Fund 2.65 3.77 3.92
Lipper Intermediate Investment Grade Bond Fund Index (b) -0.29 5.80 5.15
Lehman Brothers Government/Corporate Intermediate Bond Index
(c) 0.10 6.57 5.83
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles Lipper Intermediate Lehman Brothers
Intermediate Investment Grade Government/Corp.
Duration Fixed Bond Fund Intermediate
Income Fund Index(b) Bond Index(c)
01/31/1998 $10,000.00 $10,000.00 $10,000.00
02/28/1998 $9,992.38 $9,985.55 $10,040.00
03/31/1998 $10,024.48 $10,022.43 $10,080.00
04/30/1998 $10,074.71 $10,069.25 $10,121.00
05/31/1998 $10,148.61 $10,160.06 $10,181.00
06/30/1998 $10,213.39 $10,241.00 $10,212.00
07/31/1998 $10,249.42 $10,261.96 $10,253.00
08/31/1998 $10,410.49 $10,400.97 $10,150.00
09/30/1998 $10,672.02 $10,634.14 $10,191.00
10/31/1998 $10,661.51 $10,548.10 $10,211.00
11/30/1998 $10,660.70 $10,600.69 $10,305.00
12/31/1998 $10,703.54 $10,646.06 $10,321.00
01/31/1999 $10,762.31 $10,712.11 $10,417.00
02/28/1999 $10,604.12 $10,520.91 $10,321.00
03/31/1999 $10,683.21 $10,603.66 $10,460.00
</TABLE>
Note: Past performance is not predictive of future performance.
(a): Inception date of the Loomis Sayles Intermediate Duration Fixed Income Fund
is January 28, 1998. Since Lipper Intermediate Investment Grade Bond Fund
Index and Lehman Brothers Government/Corporate Intermediate Bond Index
performance data is not available coincident with the inception date,
comparative performance is presented from January 31, 1998.
(b): Source: Lipper Analytical Services.
(c): The Lehman Brothers Government/Corporate Intermediate Bond Index consists
of those bonds held within the Lehman Brothers Government/Corporate Bond
Index which have an average maturity of 1-10 years. The Lehman Brothers
Government/Corporate Bond Index consists 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. Source: Lehman
Brothers.
16
<PAGE>
LOOMIS SAYLES INVESTMENT GRADE
FIXED INCOME FUND
- ------------------------------------------
The Loomis Sayles Investment Grade Fixed Income Fund attempts to achieve high
total investment return through a combination of current income and capital
appreciation. For the six months ended March 31, 1999, the Fund had a total
return of 6.37%, as compared to the Fund's benchmark, the Lehman Brothers
Government/Corporate Bond Index, total return of -1.07%. For the same period,
the average BBB rated debt fund, as measured by Lipper Analytical Services, had
a total return of 0.44%.
Three consecutive cuts in short-term interest rates by the Federal Reserve
brought an end to the "flight to quality," causing investors to swap out of
particularly rich Treasuries into other segments of the market. In the
investment grade bond market, demand continued to be strong. Robust mutual fund
inflows and increased participation from the broker/dealer community provided
more than enough liquidity to support the active primary and secondary markets.
The Fund's considerable position in Canadian government and provincial debt
appreciated markedly over the last six months, as a result of Canada's improving
credit profile, the strengthening Canadian dollar, and the attractive structure
of their debt (i.e. good call protection & liquidity). Our modest Yankee
allocation provided a boost to performance as well, with bonds such as Enersis,
Korea Electric & Power, and Telekom Malaysia making strong advances. Also
noteworthy was the strong performance of the REIT sector, which added value as
spreads in this sector narrowed measurably over the first half of the fiscal
year.
We believe that the current portfolio is strongly positioned vis-a-vis global
market conditions. We remain underweight in the Treasury sector relative to the
benchmark, primarily because we believe there is better value and more
attractive yields in other segments of the market. Areas of focus continue to be
the Yankee, Energy, REIT, and Canadian government and provincial sectors. The
Fund currently exhibits an attractive yield advantage and good diversification
across sectors and countries. The Fund has a longer average maturity and
duration than that of its benchmark to capture additional yield and lock it in
through the call protection inherent in longer maturity bonds.
DANIEL J. FUSS IS THE PORTFOLIO MANAGER FOR THE INVESTMENT GRADE FIXED INCOME
FUND.
17
<PAGE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
INCEPTION (A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31,
1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR 3 YEARS INCEPTION
<S> <C> <C> <C> <C>
Loomis Sayles Investment Grade Fixed Income Fund 6.37 3.48 9.49 11.75
Lipper BBB Rated Bond Fund Index (b) 0.63 3.95 7.47 8.45
Lehman Brothers Government/Corp. Bond Index (c) -1.07 6.55 7.75 8.44
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles
Investment Lipper BBB Lehman Brothers
Grade Fixed Rated Bond Government/Corp.
Income Fund Fund Index(b) Bond Index(c)
07/31/1994 $10,000.00 $10,000.00 $10,000.00
08/31/1994 $10,310.00 $10,039.39 $10,004.09
09/30/1994 $10,078.00 $9,900.73 $9,852.58
10/31/1994 $9,987.00 $9,869.22 $9,841.66
11/30/1994 $9,915.00 $9,842.83 $9,824.07
12/31/1994 $9,974.00 $9,892.07 $9,888.83
01/31/1995 $10,152.00 $10,051.61 $10,078.71
02/28/1995 $10,573.00 $10,281.26 $10,312.41
03/31/1995 $10,753.00 $10,362.01 $10,381.57
04/30/1995 $11,051.00 $10,548.33 $10,526.40
05/31/1995 $11,618.00 $11,003.31 $10,967.57
06/30/1995 $11,822.00 $11,086.43 $11,055.23
07/31/1995 $11,745.00 $11,060.43 $11,012.61
08/31/1995 $11,964.00 $11,223.12 $11,153.50
09/30/1995 $12,270.00 $11,354.69 $11,266.79
10/31/1995 $12,435.00 $11,505.95 $11,432.25
11/30/1995 $12,755.00 $11,694.64 $11,620.46
12/31/1995 $12,989.00 $11,887.66 $11,791.68
01/31/1996 $13,214.00 $11,983.78 $11,865.08
02/29/1996 $12,909.00 $11,731.67 $11,613.33
03/31/1996 $12,909.00 $11,645.12 $11,515.81
04/30/1996 $12,806.00 $11,570.78 $11,436.80
05/31/1996 $12,874.00 $11,562.86 $11,417.54
06/30/1996 $13,071.00 $11,695.36 $11,569.96
07/31/1996 $13,106.00 $11,724.34 $11,596.96
08/31/1996 $13,187.00 $11,718.52 $11,568.45
09/30/1996 $13,598.00 $11,953.04 $11,774.10
10/31/1996 $14,166.00 $12,239.95 $12,048.90
11/30/1996 $14,665.00 $12,512.85 $12,270.78
12/31/1996 $14,406.00 $12,391.80 $12,133.98
01/31/1997 $14,382.00 $12,431.17 $12,148.39
02/28/1997 $14,529.00 $12,502.08 $12,174.02
03/31/1997 $14,233.00 $12,309.04 $12,029.34
04/30/1997 $14,444.00 $12,490.87 $12,205.26
05/31/1997 $14,683.00 $12,633.93 $12,319.15
06/30/1997 $14,959.00 $12,822.28 $12,467.02
07/31/1997 $15,722.00 $13,265.63 $12,848.44
08/31/1997 $15,276.00 $13,089.91 $12,704.21
09/30/1997 $15,687.00 $13,320.17 $12,903.94
10/31/1997 $15,829.00 $13,455.46 $13,110.65
11/30/1997 $15,855.00 $13,521.22 $13,179.65
12/31/1997 $15,932.00 $13,666.29 $13,317.96
01/31/1998 $16,105.00 $13,840.71 $13,505.71
02/28/1998 $16,198.00 $13,835.63 $13,478.26
03/31/1998 $16,372.00 $13,905.86 $13,519.81
04/30/1998 $16,412.00 $13,965.41 $13,587.75
05/31/1998 $16,521.00 $14,084.84 $13,733.80
06/30/1998 $16,535.00 $14,188.19 $13,873.48
07/31/1998 $16,326.00 $14,177.16 $13,884.55
08/31/1998 $15,469.00 $14,074.13 $14,155.87
09/30/1998 $15,927.00 $14,364.28 $14,560.64
10/31/1998 $15,788.00 $14,187.11 $14,457.82
11/30/1998 $16,365.00 $14,449.41 $14,543.96
12/31/1998 $16,463.00 $14,485.34 $14,579.60
01/31/1999 $16,780.00 $14,611.38 $14,683.18
02/28/1999 $16,520.00 $14,295.24 $14,334.22
03/31/1999 $16,942.00 $14,454.53 $14,405.35
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE
REGISTRATION(A) TO MARCH 31, 1999
AVERAGE RETURNS (%) - PERIOD ENDED MARCH 31,
1999
ANNUALIZED
SINCE
6 MONTHS 1 YEAR REGISTRATION
<S> <C> <C> <C>
Loomis Sayles Investment Grade Fixed Income Fund 6.37 3.48 7.94
Lipper BBB Rated Bond Fund Index (b) 0.63 3.95 8.37
Lehman Brothers Government/Corp. Bond Index (c) -1.07 6.55 9.43
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Loomis Sayles Lehman Brothers
Investment Lipper BBB Government/Corp.
Grade Fixed Rated Bond Bond
Income Fund Fund Index(b) Index(c)
03/31/1997 $10,000.00 $10,000.00 $10,000.00
04/30/1997 $9,984.00 $10,148.00 $10,146.00
05/31/1997 $10,149.00 $10,265.00 $10,240.00
06/30/1997 $10,340.00 $10,418.00 $10,363.00
07/31/1997 $10,867.00 $10,778.00 $10,680.00
08/31/1997 $10,559.00 $10,636.00 $10,561.00
09/30/1997 $10,843.00 $10,823.00 $10,727.00
10/31/1997 $10,941.00 $10,933.00 $10,898.00
11/30/1997 $10,959.00 $10,987.00 $10,956.00
12/31/1997 $11,012.00 $11,105.00 $11,071.00
01/31/1998 $11,132.00 $11,247.00 $11,227.00
02/28/1998 $11,196.00 $11,242.00 $11,205.00
03/31/1998 $11,316.00 $11,300.00 $11,239.00
04/30/1998 $11,344.00 $11,348.00 $11,296.00
05/31/1998 $11,419.00 $11,446.00 $11,416.00
06/30/1998 $11,429.00 $11,529.00 $11,533.00
07/31/1998 $11,284.00 $11,520.00 $11,542.00
08/31/1998 $10,692.00 $11,436.00 $11,767.00
09/30/1998 $11,009.00 $11,672.00 $12,104.00
10/31/1998 $10,913.00 $11,528.00 $12,018.00
11/30/1998 $11,312.00 $11,741.00 $12,090.00
12/31/1998 $11,379.00 $11,771.00 $12,120.00
01/31/1999 $11,599.00 $11,873.00 $12,206.00
02/28/1999 $11,419.00 $11,617.00 $11,916.00
03/31/1999 $11,711.00 $11,745.00 $11,975.00
</TABLE>
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. Shares of the Fund were registered for offer and sale under
the Securities Act of 1933 on March 7, 1997. In accordance with SEC
regulations, performance information is provided for the period beginning
on March 7, 1997 ("Registration"). For the convenience of our long-term
shareholders, performance information is also provided for the period
beginning on July 1, 1994 ("Inception"). Since Lipper BBB Rated Bond Fund
Index & Lehman Brothers Government/Corporate Bond Index performance data is
not available coincident with the registration date, comparative
performance is presented from March 31, 1997.
(b): Source: Lipper Analytical Services.
(c): Lehman Brothers Government/Corporate Bond Index is a composite of
approximately 5,300 corporates 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. Source: Lehman Brothers.
18
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
<S> <C> <C>
- -----------------------------------------------------------------
BONDS AND NOTES -- 4.3% OF NET ASSETS
Lehman Brothers Holdings, Inc.,
6.400%, 12/27/99.................... $ 900,000 $ 903,645
-----------
TOTAL BONDS AND NOTES
(Identified Cost $897,963).......... 903,645
-----------
MUNICIPAL BONDS AND NOTES -- 88.9% OF NET ASSETS
California Educational Facilities
Authority Revenue, 6.000%,
2/15/17............................. 600,000 641,442
California Health Facilities Authority
Revenue, Series A,
(MBIA Insured), 5.550%, 8/15/25..... 300,000 308,706
California Housing Finance Agency,
(MBIA Insured), 5.200%, 8/01/05..... 230,000 240,240
California Housing Finance Agency,
(MBIA Insured), 5.500%, 8/01/17..... 500,000 516,230
California Housing Finance Agency,
(MBIA Insured), 5.850%, 8/01/09..... 300,000 316,890
California Pollution Control, 5.000%,
4/01/08............................. 425,000 445,476
California Pollution Control, 5.900%,
6/01/14............................. 400,000 450,620
California Resource Efficiency
Financing, First Resource
Efficiency, (AMBAC Insured), 5.400%,
7/01/04............................. 150,000 161,693
California State General Obligations,
5.500%, 6/01/01..................... 500,000 521,805
California State General Obligations,
5.750%, 3/01/13..................... 505,000 547,743
California State General Obligations,
(MBIA Insured),
6.000%, 10/01/14 (Prerefunded
10/1/02 @ 102)...................... 240,000 263,781
California State General Obligations,
(MBIA Insured),
6.000%, 10/01/14.................... 10,000 10,850
California State Public Works Board,
Community College,
5.200%, 3/01/06..................... 200,000 213,596
California State Public Works Board,
Community College,
5.200%, 4/01/07..................... 500,000 535,100
California State Public Works Lease,
5.400%, 4/01/04..................... 200,000 213,972
California State Water Resources
Development, 5.000%, 3/01/01........ 200,000 200,980
California Statewide Community
Development, St. Joseph Health
Systems, 4.750%, 7/01/16............ 500,000 482,210
Clovis, California, Unified School
District, (FGIC Insured),
Zero Coupon Bond, 8/01/04........... 200,000 163,024
Clovis, California, Unified School
District, (FGIC Insured),
10.625%, 8/01/03.................... 200,000 255,260
Corona, California, Single Family,
5.500%, 11/01/10.................... 130,000 135,572
East Bay California Municipal Utility
Water Systems, 6.000%, 6/01/12...... 500,000 540,310
Fresno, California, Unified School
District, Series D (FSA Insured),
5.125%, 8/01/18..................... 500,000 506,930
</TABLE>
19
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- CONTINUED
Industry, California, (MBIA insured),
5.700%, 7/01/18..................... $ 290,000 $ 308,331
Los Angeles State Building Authority,
Lease Revenue, 5.375%, 5/01/06...... 300,000 323,076
Los Angeles, California, Electric
Plant Revenue, Department of Water &
Power, 6.000%, 6/01/13.............. 500,000 531,830
Los Angeles, California, Wastewater
Systems, (FGIC Insured),
5.375%, 11/01/07.................... 450,000 483,718
Los Angeles, California, Water and
Power Waterworks Revenue, Department
of Water & Power, 6.500%,
11/01/10............................ 350,000 378,371
Mid-Peninsula, California, Regional
Open Space, 5.500%, 9/01/07......... 100,000 106,130
Northern California Power Agency,
Public Revenue, 5.250%, 7/01/02..... 250,000 260,693
Oceanside, California, Water Systems,
(AMBAC Insured),
5.650%, 8/01/09..................... 125,000 135,154
Riverside, California, Electric
Revenue, (MBIA Insured),
5.200%, 10/01/08.................... 230,000 243,524
Sacramento, California, Municipal
Utility District, 5.250%, 5/15/04... 250,000 266,125
Sacramento, California, Municipal
Utility District, 5.700%, 5/15/12... 500,000 531,705
Sacramento, California, Power
Authority, 6.000%, 7/01/02.......... 500,000 532,695
San Diego, California, Industrial
Development Revenue,
(AMBAC Insured), 5.900%, 6/01/18.... 700,000 758,016
San Diego, California, Open Space Park
Facility, District One, 5.750%,
1/01/08............................. 250,000 271,237
San Diego, California, Sewer Revenue,
(AMBAC Insured),
4.750%, 5/15/06..................... 125,000 130,289
San Francisco Bay Area Rapid Transit
Authority, (FGIC Insured), 5.450%,
7/01/08............................. 200,000 216,588
San Francisco, California, City &
County International Airport
Revenue, (AMBAC Insured), 6.200%,
5/01/04 (Prerefunded 5/1/02 @
102)................................ 120,000 131,690
San Francisco, California, City &
County International Airport
Revenue, (AMBAC Insured), 6.200%,
5/01/04............................. 180,000 196,596
San Francisco, California, City &
County Library Facilities,
Series D, 6.100%, 6/15/07........... 250,000 263,363
San Francisco, California, City &
County Public Utility Water Revenue,
Series A, 6.375%, 11/01/06.......... 500,000 550,615
San Francisco, California, City &
County Redevelopment Project, Series
B, 5.200%, 8/01/08.................. 250,000 265,858
San Francisco, California, Port
Commission, 5.500%, 7/01/04......... 100,000 107,527
</TABLE>
20
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -----------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES -- CONTINUED
San Francisco, California, Public
Utilities, 6.000%, 11/01/15......... $ 500,000 $ 531,745
San Francisco, California, Sewer
Revenue, (AMBAC Insured),
6.000%, 10/01/11.................... 500,000 542,140
San Francisco, California, State
Building Authority,
5.000%, 10/01/05.................... 125,000 131,995
San Francisco, California, State
Building Authority,
5.125%, 10/01/07.................... 250,000 266,235
San Jose, California, Airport Revenue,
(FGIC Insured),
5.875%, 3/01/07..................... 200,000 223,928
Santa Clara Valley, California, Water
District Refunding &
Improvements, Series A, (FGIC
Insured), 5.800%, 2/01/08
(Prerefunded 2/1/04 @ 102).......... 100,000 109,202
Santa Clara, California, Electric
Revenue, (MBIA Insured),
6.250%, 7/01/13 (Prerefunded 2/1/04
@ 102).............................. 250,000 270,402
Turlock, California, Irrigation
District Revenue, 5.750%, 1/01/18... 500,000 521,340
University of California Revenue,
Series B, 5.800%, 9/01/07
(Prerefunded 9/1/03 @ 102).......... 415,000 459,841
University of California Revenue,
Series B, 6.500%, 9/01/03........... 300,000 332,424
University of California Revenue,
Series C, (AMBAC Insured),
4.700%, 9/01/06..................... 200,000 208,270
University of California Revenue,
Series C, (AMBAC Insured),
5.000%, 9/01/08..................... 175,000 183,263
-----------
TOTAL MUNICIPAL BONDS AND NOTES
(Identified Cost $17,721,044)..... 18,446,346
-----------
SHORT-TERM INVESTMENT -- 5.5% OF NET ASSETS
Repurchase Agreement with State Street
Bank and Trust Co.,
dated 3/31/99 at 4.000% to be
repurchased at $1,135,126 on 4/1/99
collateralized by $905,000 U.S.
Treasury Bond, 8.125%, due 8/15/21
with a value of $1,158,400.......... 1,135,000 1,135,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $1,135,000)...... 1,135,000
-----------
TOTAL INVESTMENTS -- 98.7%
(IDENTIFIED COST $19,754,007) @..... 20,484,991
Cash and Other Assets, Less
Liabilities -- 1.3%................. 271,615
-----------
NET ASSETS -- 100%.................... $20,756,606
-----------
-----------
</TABLE>
21
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
! See Note 1.
@ At March 31, 1999, the net unrealized appreciation on investments based on
cost of $19,754,007 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 $737,865 and $6,881, respectively, resulting in net
unrealized appreciation of $730,984.
<TABLE>
<C> <S>
Key to Abbreviations:
AMBAC: American Municipal Bond Assurance Corporation
FGIC: Federal Guaranty Insurance Corporation
FSA: Financial Security Assurance
MBIA: Municipal Bond Insurance Association
</TABLE>
<TABLE>
<CAPTION>
TEN LARGEST HOLDINGS BY MUNICIPAL CLASSIFICATION AT
MARCH 31, 1999 AS A PERCENTAGE OF NET ASSETS
<S> <C>
General Obligations 21.3%
Education 14.4%
Revenue 12.2%
Water & Sewer 11.9%
Utilities 9.8%
Electric & Gas 6.8%
Public Works 4.9%
Health/Hospital 3.8%
Airport Revenue 1.6%
Transportation & Highway 1.1%
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
<S> <C> <C>
- ------------------------------------------------------------------
BONDS AND NOTES -- 96.8% OF NET ASSETS
AEROSPACE/DEFENSE -- 2.3%
Lockheed Corp., 9.000%, 1/15/22....... $ 406,000 $ 493,578
-----------
BANKS/SAVINGS & LOANS -- 4.5%
Chase Manhattan Corp., 7.625%,
1/15/03............................. 200,000 211,578
First America Bank Corp., 7.750%,
7/15/04............................. 150,000 159,216
NCNB Corp., 9.125%, 10/15/01.......... 100,000 107,919
Standard Federal Bank, 7.750%,
7/17/06............................. 450,000 482,639
-----------
961,352
-----------
COMPUTERS -- 1.7%
Seagate Technology, Inc., 7.125%,
3/01/04............................. 122,000 116,741
Seagate Technology, Inc., 7.370%,
3/01/07............................. 265,000 248,101
-----------
364,842
-----------
ENTERTAINMENT -- 3.0%
Time Warner Entertainment Co., 7.250%,
9/01/08............................. 600,000 638,178
-----------
ENVIRONMENTAL SERVICES -- 2.2%
WMX Technologies, Inc., 6.375%,
12/01/03............................ 143,000 144,939
WMX Technologies, Inc., 7.000%,
10/15/06............................ 325,000 337,353
-----------
482,292
-----------
FINANCIAL SERVICES -- 5.0%
Advanta Corp., 7.000%, 5/01/01........ 100,000 89,358
Ford Motor Credit Co., 7.750%,
11/15/02............................ 200,000 212,082
Ford Motor Credit Co., 8.000%,
6/15/02............................. 350,000 371,791
General Motors Acceptance Corp.,
7.125%, 5/01/01..................... 115,000 118,251
USL Capital Corp., 7.050%, 5/14/01.... 275,000 282,120
-----------
1,073,602
-----------
FOOD & BEVERAGE -- 2.2%
ConAgra, Inc., 9.750%, 3/01/21........ 375,000 483,218
-----------
FOREIGN ISSUER -- 4.4%
Philips Electronics NV, 8.375%,
9/15/06............................. 515,000 554,835
Saga Petroleum ASA, 7.250%, 9/23/27... 450,000 399,609
-----------
954,444
-----------
GOVERNMENT AGENCIES -- 14.5%
Federal Home Loan Mortgage Corp.,
6.000%, 11/01/13.................... 731,573 727,000
Federal Home Loan Mortgage Corp.,
6.500%, 1/01/27..................... 106,412 106,013
Federal Home Loan Mortgage Corp.,
7.000%, 1/01/12..................... 75,724 77,428
</TABLE>
23
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- ------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES -- CONTINUED
GOVERNMENT AGENCIES -- CONTINUED
Federal Home Loan Mortgage Corp.,
8.000%, 7/01/25..................... $ 24,670 $ 25,665
Federal Home Loan Mortgage Corp.,
8.000%, 12/01/26.................... 58,277 60,626
Federal National Mortgage Association,
6.000%, 2/01/29..................... 997,893 969,822
Federal National Mortgage Association,
7.500%, 1/01/27..................... 124,573 127,999
Federal National Mortgage Association,
9.500%, 11/01/10.................... 32,065 33,687
Government National Mortgage
Association, 6.500%, 4/15/26........ 121,743 121,362
Government National Mortgage
Association, 6.500%, 9/15/28........ 691,270 688,242
Government National Mortgage
Association, 8.500%, 4/15/23........ 76,048 80,491
Government National Mortgage
Association, 9.500%, 9/15/20........ 94,082 101,091
-----------
3,119,426
-----------
HOLDING COMPANIES -- DIVERSIFIED -- 1.0%
ITT Corp., 7.400%, 11/15/25........... 225,000 207,018
-----------
NATURAL GAS -- 3.2%
Columbia Gas Systems, Inc., 7.050%,
11/28/07............................ 675,000 688,176
-----------
OIL & GAS -- 5.7%
Coastal Corp., 6.950%, 6/02/28........ 500,000 486,915
Ensco International, Inc., 6.750%,
11/15/07............................ 350,000 341,953
Union Oil Co., 7.500%, 2/15/29........ 400,000 406,792
-----------
1,235,660
-----------
PAPER PRODUCTS -- 2.0%
Boise Cascade Corp., 9.800%,
4/15/03............................. 200,000 213,052
Boise Cascade Corp., 9.980%,
3/27/03............................. 200,000 214,130
-----------
427,182
-----------
REAL ESTATE INVESTMENT TRUSTS -- 1.1%
Developers Diversified Realty, 6.800%,
7/23/02............................. 125,000 126,634
Meditrust Corp., 7.375%, 7/15/00...... 125,000 120,472
-----------
247,106
-----------
SECURITIES -- 3.4%
Lehman Brothers Holdings, Inc.,
6.125%, 7/15/03..................... 495,000 487,154
Lehman Brothers Holdings, Inc.,
7.250%, 4/15/03..................... 150,000 153,746
Salomon, Inc., 6.650%, 7/15/01........ 100,000 101,861
-----------
742,761
-----------
TELECOMMUNICATIONS -- 2.5%
MCI WorldCom, Inc., 7.550%, 4/01/04... 500,000 532,880
-----------
</TABLE>
24
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- ------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES -- CONTINUED
TRANSPORTATION -- 4.5%
Norfolk Southern Corp., 7.800%,
5/15/27............................. $ 450,000 $ 499,549
Union Pacific Corp., 6.625%,
2/01/08............................. 200,000 201,648
Union Pacific Corp., 6.700%,
12/01/06............................ 260,000 262,881
-----------
964,078
-----------
U.S. GOVERNMENT -- 23.2%
U.S. Treasury Bonds, 6.250%,
8/15/23............................. 745,000 778,525
U.S. Treasury Notes, 6.250%,
2/15/07............................. 705,000 741,899
U.S. Treasury Notes, 6.375%,
8/15/02............................. 1,075,000 1,114,474
U.S. Treasury Notes, 7.250%,
8/15/04............................. 2,180,000 2,379,601
-----------
5,014,499
-----------
UTILITIES -- 10.4%
Boston Edison Co., 6.800%, 3/15/03.... 400,000 409,772
Boston Edison Co., 7.800%, 5/15/10.... 300,000 331,884
Commonwealth Edison Co., 7.375%,
1/15/04............................. 586,000 620,650
Gulf States Utilities Co., 6.410%,
8/01/01............................. 435,000 438,546
Midamerican Energy Co., 6.500%,
12/15/01............................ 441,000 448,638
-----------
2,249,490
-----------
TOTAL BONDS AND NOTES
(Identified Cost $20,916,783)....... 20,879,782
-----------
SHORT-TERM INVESTMENT -- 2.0% OF NET ASSETS
Repurchase Agreement with State Street
Bank and Trust Co., dated 3/31/99 at
4.000% to be repurchased at $436,048
on 4/1/99 collateralized by $350,000
U.S. Treasury Bond, 8.125%, due
8/15/21 with a value of $448,000.... 436,000 436,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $436,000).......... 436,000
-----------
TOTAL INVESTMENTS -- 98.8%
(IDENTIFIED COST $21,352,783) @....... 21,315,782
Cash and Other Assets, Less
Liabilities -- 1.2%............... 253,406
-----------
NET ASSETS -- 100%...................... $21,569,188
-----------
-----------
</TABLE>
25
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
! See Note 1.
@ At March 31, 1999, the net unrealized depreciation on investments based on
cost of $21,352,783 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 $206,468 and $243,469, respectively, resulting in net
unrealized depreciation of $37,001.
See accompanying notes to financial statements.
26
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CORE GROWTH FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE +
<S> <C> <C>
- -----------------------------------------------------------------
COMMON STOCKS -- 88.2% OF NET ASSETS
ADVERTISING -- 2.6%
Omnicom Group, Inc.................... 7,600 $ 607,525
-----------
BROADCASTING -- 1.5%
Comcast Corp.......................... 5,800 356,700
-----------
COMMUNICATIONS EQUIPMENT -- 2.3%
Cisco Systems, Inc. *................. 5,050 553,291
-----------
COMPUTER HARDWARE -- 9.1%
EMC Corp. *........................... 5,000 638,750
International Business Machines
Corp................................ 2,700 478,575
Lexmark International Group, Inc.
Class A *........................... 3,800 424,650
Sun Microsystems, Inc. *.............. 5,000 625,312
-----------
2,167,287
-----------
ELECTRICAL EQUIPMENT -- 1.4%
Solectron Corp. *..................... 6,700 325,369
-----------
ELECTRONICS -- 6.4%
Applied Materials, Inc. *............. 8,100 499,669
Raytheon Co........................... 9,500 556,937
Texas Instruments, Inc................ 4,600 456,550
-----------
1,513,156
-----------
ENTERTAINMENT -- 4.1%
Time Warner, Inc...................... 13,700 973,556
-----------
FINANCIAL SERVICES -- 4.1%
Citigroup, Inc........................ 8,200 523,775
Providian Financial Corp.............. 4,000 440,000
-----------
963,775
-----------
FOREST PRODUCTS -- 2.5%
Georgia Pacific Corp.................. 8,100 601,425
-----------
FREIGHT TRANSPORTATION -- 0.9%
FDX Corp. *........................... 2,200 204,187
-----------
HEALTH CARE -- BIOTECHNOLOGY -- 2.9%
Amgen, Inc. *......................... 4,300 321,963
Biogen, Inc. *........................ 3,300 377,231
-----------
699,194
-----------
HEALTH CARE -- DRUGS -- 5.6%
Pfizer, Inc........................... 4,600 638,250
Schering-Plough Corp.................. 12,400 685,875
-----------
1,324,125
-----------
</TABLE>
27
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CORE GROWTH FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE +
- -----------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- CONTINUED
HEALTH CARE -- MEDICAL TECHNOLOGY --
3.9%
Guidant Corp.......................... 7,900 $ 477,950
Medtronic, Inc........................ 6,400 459,200
-----------
937,150
-----------
HOME PRODUCTS -- 0.9%
Procter & Gamble Co................... 2,200 215,462
-----------
IMAGING -- 1.3%
Xerox Corp............................ 5,800 309,575
-----------
INSURANCE -- 3.9%
American International Group, Inc..... 4,600 554,875
Jefferson-Pilot Corp.................. 5,300 359,075
-----------
913,950
-----------
LEISURE -- 1.4%
Hasbro, Inc........................... 11,550 334,228
-----------
NATURAL GAS -- 2.2%
Enron Corp............................ 8,100 520,425
-----------
OIL & GAS DRILLING EQUIPMENT -- 1.8%
Schlumberger Ltd...................... 7,200 433,350
-----------
OIL & GAS EXPLORATION -- 4.1%
Anadarko Petroleum Corp............... 16,300 615,325
Burlington Resources, Inc............. 8,900 355,444
-----------
970,769
-----------
PACKAGING -- 1.6%
Sealed Air Corp. *.................... 7,700 378,744
-----------
PERSONAL CARE -- 2.2%
Gillette Co........................... 8,900 528,994
-----------
RESTAURANTS -- 2.8%
McDonald's Corp....................... 14,800 670,625
-----------
RETAIL -- DRUG -- 2.3%
CVS Corp.............................. 11,700 555,750
-----------
RETAIL -- FOOD -- 2.2%
Safeway, Inc. *....................... 10,300 528,519
-----------
RETAIL -- GENERAL -- 4.4%
Dollar General Corp................... 15,100 513,400
Kohl's Corp. *........................ 7,400 524,475
-----------
1,037,875
-----------
</TABLE>
28
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES CORE GROWTH FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE +
- -----------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS -- CONTINUED
RETAIL -- SPECIALTY -- 2.9%
Staples, Inc. *....................... 20,650 $ 678,869
-----------
TELECOMMUNICATIONS -- 6.9%
MCI WorldCom, Inc. *.................. 6,900 611,081
SBC Communications, Inc............... 9,500 447,688
Sprint Corp........................... 6,000 588,750
-----------
1,647,519
-----------
TOTAL COMMON STOCKS
(Identified Cost $15,889,108)....... 20,951,394
-----------
<CAPTION>
FACE
AMOUNT
<S> <C> <C>
- -----------------------------------------------------------------
SHORT-TERM INVESTMENT -- 6.1% OF NET ASSETS
Repurchase Agreement with State Street
Bank and Trust Co., dated 3/31/99 at
4.000% to be repurchased at
$1,449,161 on 4/1/99 collateralized
by $1,155,000 U.S. Treasury Bond,
8.125%, due 8/15/21 with a value of
$1,478,400.......................... $1,449,000 1,449,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $1,449,000)........ 1,449,000
-----------
TOTAL INVESTMENTS -- 94.3%
(IDENTIFIED COST $17,338,108) @..... 22,400,394
Cash and Other Assets, Less
Liabilities -- 5.7%............. 1,364,509
-----------
NET ASSETS -- 100%.................... $23,764,903
-----------
-----------
</TABLE>
! See Note 1.
* Non-income producing security.
@ At March 31, 1999, the net unrealized appreciation on investments based on
cost of $17,338,108 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 $5,300,118 and $237,832, respectively, resulting in net
unrealized appreciation of $5,062,286.
See accompanying notes to financial statements.
29
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
<S> <C> <C> <C>
- ------------------------------------------------------------------
BONDS AND NOTES -- 95.2% OF NET ASSETS
NON-CONVERTIBLE BONDS -- 77.2%
AUTO & RELATED -- 1.3%
Ford Motor Co., 6.625%,
10/01/28....................... USD 3,650,000 $ 3,513,526
------------
BANKS/SAVINGS & LOANS -- 0.1%
First Union Corp., 7.500%,
4/15/35........................ 270,000 290,250
------------
BROADCASTING -- 0.8%
Fox Family Worldwide, Inc., Zero
Coupon Bond, 11/01/07 (step to
10.250% on 11/01/02) #......... 3,600,000 2,304,000
------------
BUILDING MATERIALS -- 1.0%
Owens Corning, 7.500%, 8/01/18... 3,000,000 2,909,220
------------
CANADIAN -- 17.0%
Canadian Government, Zero Coupon
Bond, 6/01/22.................. CAD 2,500,000 484,356
Canadian Government, Zero Coupon
Bond, 6/01/25.................. 71,460,000 12,080,369
Clearnet Communications, Inc.,
Zero Coupon Bond, 5/15/08 (step
to 10.400% on 5/15/03) #....... 2,500,000 1,035,728
Hydro Quebec, Zero Coupon Bond,
8/15/20........................ 7,500,000 1,410,613
International Semi-Tech Corp.,
Zero Coupon Bond, 8/15/03 (step
to 11.50% on 8/15/00) #........ USD 3,600,000 504,000
New Brunswick FM Project, Zero
Coupon Bond, 11/30/27 (step to
6.470% on 5/30/03) 144A #...... CAD 1,250,000 676,654
Province of Alberta, 5.930%,
9/16/16........................ 1,566,840 1,096,435
Province of British Columbia,
Zero Coupon Bond, 8/23/13...... 11,700,000 3,411,272
Province of British Columbia,
Zero Coupon Bond, 9/05/20...... 4,750,000 922,733
Province of British Columbia,
Zero Coupon Bond, 9/08/23...... 3,300,000 539,602
Province of British Columbia,
Zero Coupon Bond, 8/23/24...... 8,500,000 1,315,624
Province of British Columbia,
Zero Coupon Bond, 11/19/27..... 8,150,000 1,047,896
Province of British Columbia,
8.000%, 9/08/23................ 3,300,000 2,799,378
Province of Manitoba, 6.500%,
9/22/17........................ 5,075,000 3,711,754
Province of Manitoba, 7.750%,
12/22/25....................... 5,295,000 4,500,188
Province of Newfoundland, 6.150%,
4/17/28........................ 1,000,000 677,993
Province of Ontario, Zero Coupon
Bond, 7/13/22.................. 12,200,000 2,135,849
Province of Ontario, Zero Coupon
Bond, 6/02/27.................. 27,950,000 3,772,120
Province of Saskatchewan, Zero
Coupon Bond, 4/10/14........... 5,000,000 1,405,277
Province of Saskatchewan, 5.750%,
3/05/29........................ 1,460,000 973,804
</TABLE>
30
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- ------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
CANADIAN -- CONTINUED
Province of Saskatchewan
(Certificate of Deposit), Zero
Coupon Bond, 2/04/22........... CAD 13,500,000 $ 2,475,477
Province of Saskatchewan
(Certificate of Deposit), Zero
Coupon Bond, 5/30/25........... 4,375,000 666,371
------------
47,643,493
------------
COMMUNICATIONS -- 0.7%
Arch Communications Group, Inc.,
Zero Coupon Bond, 3/15/08 (step
to 10.875% on 3/15/01) #....... USD 4,700,000 1,927,000
------------
COMPUTERS -- 1.2%
Apple Computer, Inc., 6.500%,
2/15/04........................ 1,325,000 1,185,875
Seagate Technology, Inc., 7.450%,
3/01/37........................ 2,225,000 2,107,008
------------
3,292,883
------------
ELECTRONICS -- 0.2%
Westinghouse Electric Corp.,
7.875%, 9/01/23................ 500,000 522,215
------------
ENTERTAINMENT -- 3.6%
Time Warner Entertainment Co.,
6.875%, 6/15/18................ 2,840,000 2,817,905
Time Warner Entertainment Co.,
6.950%, 1/15/28................ 5,650,000 5,643,785
Time Warner Entertainment Co.,
7.570%, 2/01/24................ 1,625,000 1,727,570
------------
10,189,260
------------
FINANCIAL SERVICES -- 0.6%
Security Capital Group, Inc.,
7.700%, 6/15/28................ 2,000,000 1,774,060
------------
FOOD & BEVERAGE -- 1.3%
Borden, Inc., 7.875%, 2/15/23.... 1,500,000 1,249,950
ConAgra, Inc., 7.000%,
10/01/28....................... 2,500,000 2,476,825
------------
3,726,775
------------
FOREIGN GOVERNMENT/AGENCY -- 6.6%
Escom, 11.000%, 6/01/08.......... ZAR 2,500,000 322,017
Republic of Argentina, 6.000%,
3/31/23........................ USD 500,000 349,375
Republic of Argentina, 8.875%,
3/01/29........................ 1,500,000 1,150,350
Republic of Brazil, 10.125%,
5/15/27........................ 5,777,000 4,188,325
Republic of Brazil C Bond,
8.000%, 4/15/14 PIK............ 8,979,322 5,713,542
Republic of South Africa, 8.500%,
6/23/17........................ 1,800,000 1,539,000
Republic of South Africa,
12.000%, 2/28/05............... ZAR 10,500,000 1,533,413
Republic of South Africa,
12.500%, 12/21/06.............. 4,000,000 576,509
Republic of Venezuela, 9.250%,
9/15/27........................ USD 3,750,000 2,306,250
</TABLE>
31
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- ------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
FOREIGN GOVERNMENT/AGENCY --
CONTINUED
United Mexican States, 10.375%,
2/17/09........................ USD 825,000 $ 853,875
------------
18,532,656
------------
FOREIGN ISSUER -- 11.2%
Bangko Sentral Pilipinas, 8.600%,
6/15/27........................ 1,250,000 1,050,000
Bangkok Bank Public Co. Ltd.,
9.025%, 3/15/29 144A........... 3,400,000 2,429,878
Centragas, 10.650%, 12/01/10
144A........................... 444,780 384,735
Compania de Transporte Energia,
9.250%, 4/01/08 144A........... 1,000,000 907,500
Embotelladora Andina SA, 7.625%,
10/01/27....................... 1,300,000 1,095,484
Hyundai Motor Co. Ltd., 7.600%,
7/15/07 144A................... 750,000 629,745
Indah Kiat Finance Mauritius
Ltd., 10.000%, 7/01/07......... 750,000 397,500
Industrial Finance Corp. of
Thailand, 7.375%, 1/14/07
144A........................... 1,000,000 880,230
Korea Electric Power Corp.,
6.750%, 8/01/27................ 500,000 457,860
Korea Electric Power Corp.,
7.400%, 4/01/16................ 1,202,189 1,099,883
Korea Electric Power Corp.,
7.750%, 4/01/13................ 1,000,000 951,630
Multicanal SA, 10.500%,
4/15/18........................ 500,000 399,375
Perez Companc SA, 8.125%, 7/15/07
144A........................... 1,550,000 1,379,500
Petroleos Mexicanos, 9.250%,
3/30/18........................ 650,000 560,625
Petroleos Mexicanos, 9.500%,
9/15/27........................ 1,450,000 1,290,500
Petroleos Mexicanos, Medium Term,
8.625%, 12/01/23 144A.......... 250,000 195,000
Philippine Long Distance
Telephone Co., 8.350%,
3/06/17........................ 400,000 325,662
Pindo Deli Finance Mauritius
Ltd., 10.750%, 10/01/07........ 1,100,000 605,000
Pindo Deli Finance Mauritius
Ltd., 10.875%, 10/01/27........ 2,250,000 1,046,250
Pindo Deli Finance Mauritius
Ltd., 11.750%, 10/01/17........ 1,500,000 765,000
Pohang Iron & Steel Co. Ltd.,
7.125%, 11/01/06............... 500,000 462,180
Quezon Power Philippines Co.,
8.860%, 6/15/17................ 1,820,000 1,328,600
Samsung Electronics Co. Ltd.,
7.700%, 10/01/27 144A.......... 2,000,000 1,520,000
Siam Commercial Bank Public Co.,
7.500%, 3/15/06 144A........... 750,000 532,500
Tata Electric Co., 8.500%,
8/19/17 144A................... 3,650,000 2,920,000
Tenaga Nasional Berhad, 7.500%,
11/01/25 144A.................. 2,500,000 1,806,125
Thai Farmers Bank Plc, 8.250%,
8/21/16 144A................... 3,000,000 2,022,900
Tjiwi Kimia Mauritius Ltd.,
10.000%, 8/01/04............... 1,675,000 896,125
Total Access Communication Public
Co. Ltd., 7.625%, 11/04/01
144A........................... 500,000 390,000
Total Access Communication Public
Co. Ltd., 8.375%, 11/04/06
144A........................... 3,850,000 2,723,875
------------
31,453,662
------------
</TABLE>
32
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- ------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
GOVERNMENT AGENCIES -- 1.9%
Federal Home Loan Mortgage Corp.,
6.000%, 6/01/26................ USD 1,831,237 $ 1,783,167
Federal National Mortgage
Association, Zero Coupon Bond,
10/29/07....................... NZD 11,450,000 3,516,985
------------
5,300,152
------------
HEALTH CARE -- PRODUCTS -- 0.4%
Bausch & Lomb, Inc., 7.125%,
8/01/28........................ USD 1,250,000 1,149,863
------------
HEALTH CARE -- SERVICES -- 1.1%
Columbia/HCA Healthcare Corp.,
7.050%, 12/01/27............... 2,250,000 1,758,465
Columbia/HCA Healthcare Corp.,
7.580%, 9/15/25................ 1,500,000 1,256,535
------------
3,015,000
------------
HOME BUILDERS -- 0.3%
Pulte Corp., 7.625%, 10/15/17.... 1,000,000 929,700
------------
INSURANCE -- 0.0%
Vesta Insurance Group, Inc.,
8.750%, 7/15/25................ 420,000 105,000
------------
MEDIA & ENTERTAINMENT -- 0.3%
News America Holdings, Inc.,
7.700%, 10/30/25............... 700,000 730,548
------------
OIL & GAS -- 3.4%
Chesapeake Energy Corp., 8.500%,
3/15/12........................ 500,000 375,000
Global Marine, Inc., 7.000%,
6/01/28........................ 500,000 442,430
Hvide Marine, Inc., 8.375%,
2/15/08........................ 600,000 372,000
Pioneer Natural Resources Co.,
6.500%, 1/15/08................ 1,000,000 811,560
Pioneer Natural Resources Co.,
7.200%, 1/15/28................ 750,000 499,058
R & B Falcon Corp., 7.375%,
4/15/18........................ 3,500,000 2,533,475
Seagull Energy Corp., 7.500%,
9/15/27........................ 3,500,000 2,658,005
Tennessee Gas Pipeline Co.,
7.000%, 10/15/28............... 1,750,000 1,722,857
------------
9,414,385
------------
RAIL -- TRANSPORT -- 0.1%
Missouri Pacific Railroad Co.,
5.000%, 1/01/45................ 500,000 263,125
------------
REAL ESTATE INVESTMENT TRUSTS --
4.4%
AMB Property Corp., 7.500%,
6/30/18........................ 1,500,000 1,430,355
First Industrial, 7.500%,
12/01/17....................... 3,000,000 2,565,270
First Industrial, 7.600%,
7/15/28........................ 6,000,000 5,259,540
Susa Partnership LP, 7.450%,
7/01/18........................ 1,500,000 1,374,690
Susa Partnership LP, 7.500%,
12/01/27....................... 1,750,000 1,575,367
------------
12,205,222
------------
</TABLE>
33
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- ------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
RETAIL -- GENERAL -- 0.9%
Dillon Read Structured Finance
Corp., 6.660%, 8/15/10......... USD 199,909 $ 182,098
Dillon Read Structured Finance
Corp., 8.550%, 8/15/19......... 500,000 485,565
K Mart Corp., 7.950%, 2/01/23.... 1,250,000 1,300,000
Penn Traffic Co., 9.625%, 4/15/05
^.............................. 2,750,000 151,250
Woolworth Corp., 8.500%,
1/15/22........................ 725,000 529,250
------------
2,648,163
------------
STEEL -- 0.1%
Geneva Steel Co., 9.500%, 1/15/04
^.............................. 1,500,000 270,000
------------
SUPRANATIONAL -- 3.6%
International Bank for
Reconstruction & Development,
Zero Coupon Bond, 8/20/07...... NZD 30,250,000 9,528,389
International Bank for
Reconstruction & Development,
8.000%, 5/23/07................ 1,000,000 580,114
------------
10,108,503
------------
TAXABLE MUNICIPAL -- 0.2%
Orange County, California Pension
Obligation, Zero Coupon Bond,
9/01/16........................ USD 2,000,000 608,380
------------
TELECOMMUNICATIONS -- 3.9%
Intermedia Communications, Inc.,
Zero Coupon Bond, 3/01/09 (step
to 12.250% on 3/01/04) 144A
#.............................. 1,500,000 945,000
Nextel Communications, Inc., Zero
Coupon Bond, 10/31/07 (step to
9.750% on 10/31/02) #.......... 2,725,000 1,934,750
Nextel Communications, Inc., Zero
Coupon Bond, 2/15/08 (step to
9.950% on 2/15/03) #........... 1,000,000 700,000
Nextel International, Inc., Zero
Coupon Bond, 4/15/08 (step to
12.125% on 4/15/03) #.......... 2,000,000 940,000
Nextlink Communications, Inc.,
Zero Coupon Bond, 4/15/08 (step
to 9.450% on 4/15/03) #........ 1,500,000 960,000
RCN Corp., Zero Coupon Bond,
10/15/07 (step to 11.125% on
10/15/02) #.................... 3,250,000 2,193,750
RCN Corp., Zero Coupon Bond,
2/15/08 (step to 9.800% on
2/15/03) #..................... 850,000 533,375
RCN Corp., Zero Coupon Bond,
7/01/08 (step to 11.000% on
7/01/03) #..................... 2,100,000 1,291,500
Teligent, Inc., Zero Coupon Bond,
3/01/08 (step to 11.500% on
3/01/03) #..................... 2,500,000 1,312,500
------------
10,810,875
------------
</TABLE>
34
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- ------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
TEXTILE & APPAREL -- 0.8%
Fruit of the Loom, Inc., 7.375%,
11/15/23....................... USD 500,000 $ 416,620
Kellwood Co., 7.625%, 10/15/17... 2,000,000 1,765,380
Phillips Van Heusen Corp.,
7.750%, 11/15/23............... 50,000 43,020
------------
2,225,020
------------
TOBACCO -- 5.4%
Philip Morris Cos., Inc., 7.750%,
1/15/27........................ 5,900,000 6,208,039
RJR Nabisco, Inc., 7.625%,
9/15/03........................ 2,625,000 2,567,434
RJR Nabisco, Inc., 8.500%,
7/01/07........................ 2,000,000 2,110,640
RJR Nabisco, Inc., 8.750%,
8/15/05........................ 1,700,000 1,817,045
RJR Nabisco, Inc., 9.250%,
8/15/13........................ 2,250,000 2,469,757
------------
15,172,915
------------
TRANSPORTATION -- 0.2%
American President Cos. Ltd.,
7.125%, 11/15/03............... 1,000,000 520,000
American President Cos. Ltd.,
8.000%, 1/15/24................ 150,000 75,000
------------
595,000
------------
U.S. GOVERNMENT -- 2.0%
U.S. Treasury Bonds, 6.000%,
2/15/26........................ 550,000 559,026
U.S. Treasury Bonds, 6.250%,
8/15/23........................ 3,995,000 4,174,775
U.S. Treasury Bonds, 6.500%,
11/15/26....................... 700,000 758,954
U.S. Treasury Bonds, 6.750%,
8/15/26........................ 105,000 117,223
------------
5,609,978
------------
UTILITIES -- 2.3%
AES Corp., 8.875%, 11/01/27...... 1,000,000 893,750
Boston Edison Co., 7.800%,
3/15/23........................ 500,000 508,663
KN Capital Trust, 7.630%,
4/15/28........................ 1,000,000 1,000,780
KN Energy, Inc., 7.250%,
3/01/28........................ 3,850,000 3,925,152
------------
6,328,345
------------
WASTE MANAGEMENT -- 0.3%
USA Waste Services, Inc., 7.000%,
7/15/28........................ 750,000 729,218
------------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost
$220,678,110).................. 216,298,392
------------
CONVERTIBLE BONDS -- 18.0%
AUTO & RELATED -- 0.2%
Exide Corp., 2.900%, 12/15/05
144A........................... 1,000,000 555,000
------------
</TABLE>
35
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- ------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
CANADIAN -- 0.1%
Rogers Communications, Inc.,
2.000%, 11/26/05............... USD 250,000 $ 179,688
------------
COMPUTERS -- 0.8%
Cray Research, Inc., 6.125%,
2/01/11........................ 463,000 344,935
HMT Technology Corp., 5.750%,
1/15/04........................ 450,000 210,375
Maxtor Corp., 5.750%, 3/01/12.... 507,000 380,250
Read Rite Corp., 6.500%,
9/01/04........................ 1,150,000 695,750
Silicon Graphics, Inc., 5.250%,
9/01/04........................ 300,000 269,250
Western Digital, Zero Coupon
Bond, 2/18/18 144A............. 1,250,000 281,250
------------
2,181,810
------------
DIVERSIFIED OPERATIONS -- 1.5%
Ogden Corp., 5.750%, 10/20/02.... 500,000 471,250
Thermo Electron Corp., 4.250%,
1/01/03 144A................... 4,200,000 3,717,000
------------
4,188,250
------------
ELECTRONICS -- 1.9%
Cirrus Logic, Inc., 6.000%,
12/15/03....................... 200,000 136,000
EDO Corp., 7.000%, 12/15/11...... 500,000 393,750
Kent Electronics Corp., 4.500%,
9/01/04........................ 2,900,000 2,117,000
Lam Research Corp., 5.000%,
9/01/02........................ 2,275,000 1,911,000
National Semiconductor Corp.,
6.500%, 10/01/02............... 350,000 288,312
Richardson Electronics Ltd.,
7.250%, 12/15/06............... 300,000 222,000
Zenith Corp., 6.250%, 4/01/11.... 1,121,000 336,300
------------
5,404,362
------------
ENVIRONMENTAL SERVICES -- 0.8%
Air & Water Technologies Corp.,
8.000%, 5/15/15................ 475,000 403,750
Thermo TerraTech, Inc., 4.625%,
5/01/03........................ 600,000 506,250
Thermo TerraTech, Inc., 4.625%,
5/01/03 144A................... 1,500,000 1,265,625
------------
2,175,625
------------
FINANCIAL SERVICES -- 1.9%
Bell Atlantic Financial Services,
4.250%, 9/15/05................ 4,325,000 4,746,688
Bell Atlantic Financial Services,
5.750%, 4/01/03................ 450,000 477,000
------------
5,223,688
------------
FOREIGN ISSUER -- 2.4%
Advanced Agro Public Co., 3.500%,
6/17/01........................ 125,000 106,563
APP Finance VII Mauritius Ltd.,
3.500%, 4/30/03................ 875,000 522,812
Bangkok Bank Public Co. Ltd.,
4.589%, 3/03/04................ 1,975,000 918,375
Banpu Public Co., 2.750%,
4/10/03........................ 1,455,000 1,164,000
</TABLE>
36
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- ------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
FOREIGN ISSUER -- CONTINUED
Burns, Philp, 5.500%, 4/30/04.... USD 1,000,000 $ 497,500
Empresas ICA Sociedad, 5.000%,
3/15/04........................ 950,000 627,000
Loxley Public Co. Ltd., 2.500%,
4/04/01........................ 700,000 70,000
Piltel, 1.750%, 7/17/06.......... 250,000 100,000
Samsung Electronics Co. Ltd.,
Zero Coupon Bond, 12/31/07..... 725,000 719,562
Sappi BVI Finance, 7.500%,
8/01/02........................ 250,000 228,438
Siam Commercial Bank Public Co.,
3.250%, 1/24/04................ 375,000 165,234
Ssangyong Oil Refining Co., Inc.,
3.000%, 12/31/04............... 500,000 318,750
Ssangyong Oil Refining Co., Inc.,
3.750%, 12/31/08............... 150,000 157,875
Telekom Malaysia Berhad, 4.000%,
10/03/04....................... 500,000 418,750
Total Access Communication Public
Co. Ltd., 2.000%, 5/31/06...... 900,000 720,000
------------
6,734,859
------------
FREIGHT TRANSPORTATION -- 0.1%
Worldway Corp., 6.250%,
4/15/11........................ 250,000 203,750
------------
HEALTH CARE -- DRUGS -- 0.7%
Chiron Corp., 1.900%, 11/17/00... 250,000 240,313
Dura Pharmaceuticals, Inc.,
3.500%, 7/15/02................ 1,450,000 1,094,750
Glycomed, Inc., 7.500%,
1/01/03........................ 300,000 242,250
NABI, Inc., 6.500%, 2/01/03...... 525,000 372,750
------------
1,950,063
------------
HEALTH CARE -- SERVICES -- 0.2%
Healthsouth Corp., 3.250%,
4/01/03........................ 500,000 407,500
Tenet Healthcare Corp., 6.000%,
12/01/05....................... 250,000 200,000
------------
607,500
------------
HOME BUILDERS -- 0.1%
Schuler Homes, Inc., 6.500%,
1/15/03........................ 400,000 320,000
------------
INSURANCE -- 3.6%
Loews Corp., 3.125%, 9/15/07..... 11,775,000 10,038,187
------------
MACHINERY -- 0.0%
Intevac, Inc., 6.500%, 3/01/04... 150,000 75,750
------------
MANUFACTURING -- 0.3%
Hexcel Corp., 7.000%, 8/01/03.... 500,000 420,000
Hexcel Corp., 7.000%, 8/01/11.... 750,000 547,500
------------
967,500
------------
</TABLE>
37
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- ------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
OIL & GAS -- 1.6%
Baker Hughes, Inc., Zero Coupon
Bond, 5/05/08.................. USD 5,100,000 $ 3,544,500
Diamond Offshore Drilling, Inc.,
3.750%, 2/15/07................ 500,000 520,000
Houston Industries, Inc., 6.000%,
3/15/12........................ 250,000 238,750
Key Energy Group, Inc., 5.000%,
9/15/04........................ 250,000 125,625
------------
4,428,875
------------
PUBLISHING -- 0.2%
Scholastic Corp., 5.000%, 8/15/05
144A........................... 600,000 576,750
------------
REAL ESTATE INVESTMENT TRUSTS --
0.8%
Federal Realty Investors Trust,
5.250%, 10/28/03............... 1,750,000 1,540,000
Rockefeller Properties, Zero
Coupon Bond, 12/31/00.......... 650,000 510,250
Sizeler Property Investors, Inc.,
8.000%, 7/15/03................ 250,000 233,125
------------
2,283,375
------------
RESTAURANTS -- 0.5%
Boston Chicken, Inc., Zero Coupon
Bond, 6/01/15 ^................ 500,000 5,000
Boston Chicken, Inc., 4.500%,
2/01/04 ^...................... 750,000 30,000
Einstein/Noah Bagel Corp.,
7.250%, 6/01/04................ 750,000 435,000
Shoney's, Inc., Zero Coupon Bond,
4/11/04........................ 4,089,000 981,360
TPI Enterprises, Inc., 8.250%,
7/15/02........................ 100,000 57,500
------------
1,508,860
------------
TELECOMMUNICATIONS -- 0.2%
Broadband Technologies, Inc.,
5.000%, 5/15/01................ 1,240,000 449,500
------------
TEXTILE & APPAREL -- 0.1%
Dixie Yarns, Inc., 7.000%,
5/15/12........................ 188,000 150,400
Fieldcrest Cannon, Inc., 6.000%,
3/15/12........................ 295,000 233,050
------------
383,450
------------
TOTAL CONVERTIBLE BONDS
(Identified Cost
$54,827,903)................... 50,436,842
------------
TOTAL BONDS AND NOTES
(Identified Cost
$275,506,013).................. 266,735,234
------------
</TABLE>
38
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE +
- ------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS -- 0.1% OF NET ASSETS
RESTAURANTS -- 0.1%
Advantica Restaurant Group, Inc.
*.............................. 67,479 $ 337,395
------------
TOTAL COMMON STOCKS
(Identified Cost $908,302)..... 337,395
------------
PREFERRED STOCKS -- 1.8% OF NET ASSETS
BUILDING MATERIALS -- 0.2%
Owens Corning, 6.500%............ 10,000 451,250
------------
CHEMICALS -- MAJOR -- 0.0%
E.I. du Pont DeNemours & Co.,
$3.50.......................... 300 20,850
------------
COMPUTER SOFTWARE & SERVICES --
0.0%
Unisys Corp., $3.75.............. 504 26,145
------------
FINANCIAL SERVICES -- 0.1%
Hvide Capital Trust, 6.500%...... 14,000 147,000
------------
METALS -- 0.0%
Alcoa, Inc., $3.75............... 100 7,625
------------
OIL & GAS -- 0.4%
Chesapeake Energy Corp., 7.000%
144A........................... 5,000 63,750
Weatherford International, Inc.,
5.000%......................... 33,500 1,025,937
------------
1,089,687
------------
REAL ESTATE INVESTMENT TRUSTS --
0.0%
Equity Residential Properties
Trust, 7.250%.................. 3,000 64,500
------------
TELECOMMUNICATIONS -- 0.6%
Hyperion Telecommunications,
Inc., 12.875% PIK.............. 1,975 1,767,489
------------
UTILITIES -- 0.5%
Cleco Corp., 4.750%.............. 688 56,330
Del Marva Power & Light Co.,
4.000%......................... 434 29,132
Entergy Louisiana, Inc.,
4.440%......................... 830 58,100
Entergy New Orleans, Inc.,
4.360%......................... 90 6,143
Entergy New Orleans, Inc.,
4.750%......................... 2,876 193,411
Jersey Central Power & Light Co.,
4.000%......................... 850 61,200
MDU Resources Group, Inc.,
5.100%......................... 960 88,560
Nevada Power Co., 4.700%......... 10,940 180,510
Niagara Mohawk Power Corp.,
3.400%......................... 5,100 306,000
Niagara Mohawk Power Corp.,
3.600%......................... 200 12,300
Niagara Mohawk Power Corp.,
3.900%......................... 100 6,700
Niagara Mohawk Power Corp.,
4.850%......................... 2,850 236,550
</TABLE>
39
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE +
- ------------------------------------------------------------------
<S> <C> <C> <C>
PREFERRED STOCKS -- CONTINUED
UTILITIES -- CONTINUED
Northern States Power Co.,
$4.11.......................... 100 $ 8,150
Public Service Electric & Gas
Co., 4.180%.................... 1,950 156,853
------------
1,399,939
------------
TOTAL PREFERRED STOCKS
(Identified Cost $5,407,486)... 4,974,485
------------
WARRANTS -- 0.0% OF NET ASSETS
COMPUTERS -- 0.0%
Streamlogic Corp., expiring
10/7/01 *...................... 250 0
------------
FOREIGN GOVERNMENT/AGENCY -- 0.0%
United Mexican States, expiring
2/17/09 *...................... 825 30,113
------------
TOTAL WARRANTS
(Identified Cost $18,565)...... 30,113
------------
<CAPTION>
FACE
AMOUNT
<S> <C> <C> <C>
- ------------------------------------------------------------------
SHORT-TERM INVESTMENT -- 1.5% OF NET ASSETS
Repurchase Agreement with State
Street Bank and Trust Co.,
dated 3/31/99 at 4.000% to be
repurchased at $4,283,476 on
4/1/99 collateralized by
$3,415,000 U.S. Treasury Bond,
8.125%, due 8/15/21 with a
value of $4,371,200............ USD 4,283,000 4,283,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $4,283,000)... 4,283,000
------------
TOTAL INVESTMENTS -- 98.6%
(IDENTIFIED COST $286,123,366)
@.............................. 276,360,227
Cash and Other Assets, Less
Liabilities -- 1.4%.......... 3,937,419
------------
NET ASSETS -- 100%................. $280,297,646
------------
------------
</TABLE>
40
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
! See Note 1.
# Step Bond: Coupon is zero or below market rate for an initial period and
then increases at a specified date and rate.
PIK All or a portion of income may be received as additional securities.
144A Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
^ Security in default.
* Non-income producing security.
@ At March 31, 1999, the net unrealized depreciation on investments based on
cost of $286,123,366 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 $14,952,469 and $24,715,608, respectively, resulting in net
unrealized depreciation of $9,763,139.
<TABLE>
<C> <S>
Key to Abbreviations:
CAD: Canadian Dollar
NZD: New Zealand Dollar
USD: United States Dollar
ZAR: South African Rand
</TABLE>
See accompanying notes to financial statements.
41
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
<S> <C> <C> <C>
- -----------------------------------------------------------------
BONDS AND NOTES -- 90.4% OF NET ASSETS
NON-CONVERTIBLE BONDS -- 54.4%
BROADCASTING -- 1.0%
Fox Family Worldwide, Inc., Zero
Coupon Bond, 11/01/07 (step to
10.250% on 11/01/02) #......... USD 275,000 $ 176,000
-----------
CANADIAN -- 5.6%
Clearnet Communications, Inc.,
Zero Coupon Bond, 8/13/07 (step
to 11.750% on 8/13/02) #....... CAD 815,000 378,840
Clearnet Communications, Inc.,
Zero Coupon Bond, 2/15/09 (step
to 10.750% on 2/15/04) #....... 350,000 135,432
International Semi-Tech Corp.,
Zero Coupon Bond, 8/15/03 (step
to 11.50% on 8/15/00) #........ USD 1,400,000 196,000
Microcell Telecommunications,
Inc., Zero Coupon Bond,
10/15/07 (step to 11.125% on
10/15/02) #.................... CAD 535,000 226,965
Rogers Communications, Inc.,
8.750%, 7/15/07................ 125,000 85,966
-----------
1,023,203
-----------
COMMUNICATIONS -- 2.1%
Arch Communications Group, Inc.,
Zero Coupon Bond, 3/15/08 (step
to 10.875% on 3/15/01) #....... USD 925,000 379,250
-----------
ENTERTAINMENT -- 0.1%
Boston Celtics Ltd., 6.000%,
6/30/38........................ 44,000 26,785
-----------
FOOD & BEVERAGE -- 1.7%
Borden, Inc., 7.875%, 2/15/23.... 370,000 308,321
-----------
FOREIGN GOVERNMENT/AGENCY -- 11.0%
Republic of Argentina, 8.875%,
3/01/29........................ 325,000 249,242
Republic of Brazil, 10.125%,
5/15/27........................ 675,000 489,375
Republic of Brazil C Bond,
8.000%, 4/15/14 PIK............ 382,725 243,528
Republic of Ecuador, 6.000%,
2/27/15 PIK ++................. 230,192 71,083
Republic of Peru, 3.750%, 3/07/17
(step to 4.000% on 3/07/01)
#.............................. 850,000 500,480
Republic of Venezuela, 9.250%,
9/15/27........................ 750,000 461,250
-----------
2,014,958
-----------
FOREIGN ISSUER -- 21.1%
Bangko Sentral Pilipinas, 8.600%,
6/15/27........................ 400,000 336,000
Bangkok Bank Public Co. Ltd.,
9.025%, 3/15/29 144A........... 400,000 285,868
Espirito Santo Centrais Eletricas
SA, 10.000%, 7/15/07........... 275,000 178,750
Industrial Finance Corp. of
Thailand, 7.375%, 1/14/07
144A........................... 140,000 123,232
</TABLE>
42
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -----------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
FOREIGN ISSUER -- CONTINUED
Korea Electric Power Corp.,
7.400%, 4/01/16................ USD 258,283 $ 236,303
Murrin Murrin Holdings Property
Ltd., 9.375%, 8/31/07.......... 75,000 67,313
Pan Pacific Industrial Investment
Plc, Zero Coupon Bond, 4/28/07
144A........................... 550,000 258,500
Petroleos Mexicanos, 9.500%,
9/15/27........................ 275,000 244,750
Petroleos Mexicanos, Medium Term,
8.625%, 12/01/23 144A.......... 275,000 214,500
Philippine Long Distance
Telephone Co., 8.350%,
3/06/17........................ 175,000 142,477
Pindo Deli Finance Mauritius
Ltd., 10.750%, 10/01/07........ 300,000 165,000
Pindo Deli Finance Mauritius
Ltd., 10.875%, 10/01/27........ 600,000 279,000
Pycsa Panama SA, 10.280%,
12/15/12 144A.................. 125,000 93,750
Quezon Power Philippines Co.,
8.860%, 6/15/17................ 325,000 237,250
Siam Commercial Bank Public Co.,
7.500%, 3/15/06 144A........... 275,000 195,250
Tata Electric Co., 8.500%,
8/19/17 144A................... 200,000 160,000
Tenaga Nasional Berhad, 7.500%,
11/01/25 144A.................. 335,000 242,021
Tjiwi Kimia Mauritius Ltd.,
10.000%, 8/01/04............... 250,000 133,750
Total Access Communication Public
Co. Ltd., 7.625%, 11/04/01
144A........................... 200,000 156,000
Total Access Communication Public
Co. Ltd., 8.375%, 11/04/06
144A........................... 150,000 106,125
-----------
3,855,839
-----------
OIL & GAS -- 3.6%
Chesapeake Energy Corp., 7.875%,
3/15/04........................ 200,000 156,000
Chesapeake Energy Corp., 9.625%,
5/01/05........................ 225,000 186,750
Hvide Marine, Inc., 8.375%,
2/15/08........................ 200,000 124,000
R & B Falcon Corp., 6.750%,
4/15/05........................ 250,000 197,500
-----------
664,250
-----------
RETAIL -- GENERAL -- 0.6%
Penn Traffic Co., 9.625%, 4/15/05
^.............................. 656,000 36,080
Woolworth Corp., 8.500%,
1/15/22........................ 110,000 80,300
-----------
116,380
-----------
STEEL -- 0.1%
Geneva Steel Co., 9.500%, 1/15/04
^.............................. 101,000 18,180
-----------
TELECOMMUNICATIONS -- 6.2%
Nextel Communications, Inc., Zero
Coupon Bond, 10/31/07 (step to
9.750% on 10/31/02) #.......... 400,000 284,000
</TABLE>
43
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -----------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
TELECOMMUNICATIONS -- CONTINUED
Nextel International, Inc., Zero
Coupon Bond, 4/15/08 (step to
12.125% on 4/15/03) #.......... USD 150,000 $ 70,500
Nextlink Communications, Inc.,
Zero Coupon Bond, 4/15/08 (step
to 9.450% on 4/15/03) #........ 150,000 96,000
RCN Corp., Zero Coupon Bond,
2/15/08 (step to 9.800% on
2/15/03) #..................... 450,000 282,375
RCN Corp., Zero Coupon Bond,
7/01/08 (step to 11.000% on
7/01/03) #..................... 150,000 92,250
Teligent, Inc., Zero Coupon Bond,
3/01/08 (step to 11.500% on
3/01/03) #..................... 425,000 223,125
Triton Communications LLC, Zero
Coupon Bond, 5/01/08 (step to
11.000% on 5/01/03) #.......... 150,000 85,687
-----------
1,133,937
-----------
TEXTILE & APPAREL -- 1.3%
Phillips Van Heusen Corp.,
7.750%, 11/15/23............... 275,000 236,613
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost
$11,540,895)................... 9,953,716
-----------
CONVERTIBLE BONDS -- 36.0%
AUTO & RELATED -- 1.0%
Exide Corp., 2.900%, 12/15/05
144A........................... 335,000 185,925
-----------
CANADIAN -- 1.9%
Rogers Communications, Inc.,
2.000%, 11/26/05............... 485,000 348,594
-----------
COMPUTERS -- 5.5%
Cray Research, Inc., 6.125%,
2/01/11........................ 140,000 104,300
Data General Corp., 6.000%,
5/15/04........................ 168,000 141,960
HMT Technology Corp., 5.750%,
1/15/04........................ 84,000 39,270
Maxtor Corp., 5.750%, 3/01/12.... 420,000 315,000
Read Rite Corp., 6.500%,
9/01/04........................ 250,000 151,250
S3, Inc., 5.750%, 10/01/03....... 112,000 85,540
Telxon Corp., 5.750%, 1/01/03.... 181,000 123,080
Western Digital, Zero Coupon
Bond, 2/18/18 144A............. 223,000 50,175
-----------
1,010,575
-----------
ELECTRONICS -- 5.6%
Cirrus Logic, Inc., 6.000%,
12/15/03....................... 460,000 312,800
EDO Corp., 7.000%, 12/15/11...... 100,000 78,750
Integrated Device Technology,
5.500%, 6/01/02................ 28,000 19,040
Kent Electronics Corp., 4.500%,
9/01/04........................ 265,000 193,450
</TABLE>
44
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -----------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
ELECTRONICS -- CONTINUED
Lam Research Corp., 5.000%,
9/01/02........................ USD 280,000 $ 235,200
LTX Corp., 7.250%, 4/15/11....... 50,000 22,500
Richardson Electronics Ltd.,
7.250%, 12/15/06............... 100,000 74,000
Zenith Corp., 6.250%, 4/01/11.... 302,000 90,600
-----------
1,026,340
-----------
ENVIRONMENTAL SERVICES -- 1.0%
Air & Water Technologies Corp.,
8.000%, 5/15/15................ 223,000 189,550
-----------
FOREIGN ISSUER -- 8.8%
Advanced Agro Public Co., 3.500%,
6/17/01........................ 320,000 272,800
APP Finance VII Mauritius Ltd.,
3.500%, 4/30/03................ 125,000 74,687
APP Finance VII Mauritius Ltd.,
3.500%, 4/30/03 144A........... 140,000 83,650
Bangkok Bank Public Co. Ltd.,
4.589%, 3/03/04................ 320,000 148,800
Banpu Public Co., 2.750%,
4/10/03........................ 80,000 64,000
Empresas ICA Sociedad, 5.000%,
3/15/04........................ 420,000 277,200
Loxley Public Co. Ltd., 2.500%,
4/04/01........................ 200,000 20,000
Piltel, 1.750%, 7/17/06.......... 50,000 20,000
PT Inti Indorayon Utama, 7.000%,
5/02/06 ^...................... 140,000 7,000
Samsung Electronics Co. Ltd.,
Zero Coupon Bond, 12/31/07..... 140,000 138,950
Sappi BVI Finance, 7.500%,
8/01/02........................ 170,000 155,338
Siam Commercial Bank Public Co.,
3.250%, 1/24/04................ 525,000 231,328
Ssangyong Oil Refining Co., Inc.,
3.000%, 12/31/04............... 110,000 70,125
Total Access Communication Public
Co. Ltd., 2.000%, 5/31/06...... 50,000 40,000
-----------
1,603,878
-----------
FREIGHT TRANSPORTATION -- 0.1%
Worldway Corp., 6.250%,
4/15/11........................ 28,000 22,820
-----------
HEALTH CARE -- DRUGS -- 2.4%
Dura Pharmaceuticals, Inc.,
3.500%, 7/15/02................ 196,000 147,980
Glycomed, Inc., 7.500%,
1/01/03........................ 84,000 67,830
NABI, Inc., 6.500%, 2/01/03...... 320,000 227,200
-----------
443,010
-----------
HEALTH CARE -- PRODUCTS -- 0.5%
Centocor, Inc., 4.750%,
2/15/05........................ 100,000 97,000
-----------
</TABLE>
45
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -----------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
HEALTH CARE -- SERVICES -- 1.1%
Medical Care International, Inc.,
6.750%, 10/01/06............... USD 84,000 $ 70,980
PhyCor, Inc., 4.500%, 2/15/03.... 56,000 32,760
Tenet Healthcare Corp., 6.000%,
12/01/05....................... 112,000 89,600
-----------
193,340
-----------
HOME BUILDERS -- 0.8%
Schuler Homes, Inc., 6.500%,
1/15/03........................ 182,000 145,600
-----------
INSURANCE -- 2.5%
Loews Corp., 3.125%, 9/15/07..... 525,000 447,562
-----------
MACHINERY -- 0.2%
Intevac, Inc., 6.500%, 3/01/04... 56,000 28,280
-----------
MANUFACTURING -- 0.7%
Hexcel Corp., 7.000%, 8/01/03.... 56,000 47,040
Hexcel Corp., 7.000%, 8/01/11.... 98,000 71,540
-----------
118,580
-----------
RESTAURANTS -- 2.4%
Boston Chicken, Inc., Zero Coupon
Bond, 6/01/15 ^................ 559,000 5,590
Boston Chicken, Inc., 4.500%,
2/01/04 ^...................... 615,000 24,600
Einstein/Noah Bagel Corp.,
7.250%, 6/01/04................ 70,000 40,600
Shoney's, Inc., Zero Coupon Bond,
4/11/04........................ 1,200,000 288,000
TPI Enterprises, Inc., 8.250%,
7/15/02........................ 150,000 86,250
-----------
445,040
-----------
RETAIL -- SPECIALTY -- 0.5%
Bell Sports Corp., 4.250%,
11/15/00....................... 53,000 42,864
CML Group, Inc., 5.500%, 1/15/03
^.............................. 81,000 1,620
Jacobson Stores, Inc., 6.750%,
12/15/11....................... 56,000 46,130
-----------
90,614
-----------
TELECOMMUNICATIONS -- 0.8%
Broadband Technologies, Inc.,
5.000%, 5/15/01................ 415,000 150,438
-----------
TEXTILE & APPAREL -- 0.2%
Dixie Yarns, Inc., 7.000%,
5/15/12........................ 34,000 27,200
-----------
TOTAL CONVERTIBLE BONDS
(Identified Cost $8,342,605)... 6,574,346
-----------
TOTAL BONDS AND NOTES
(Identified Cost
$19,883,500)................... 16,528,062
-----------
</TABLE>
46
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE +
- -----------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS -- 4.1% OF NET ASSETS
FOREIGN ISSUER -- 0.9%
Sappi Ltd., ADR.................. 3,450 $ 147,919
Siam Commercial Bank Public Co.
*.............................. 29,000 16,979
-----------
164,898
-----------
OIL & GAS -- 0.2%
Chesapeake Energy Corp........... 25,025 35,973
-----------
REAL ESTATE INVESTMENT TRUSTS --
2.7%
Associated Estates Realty
Corp........................... 12,600 131,513
Berkshire Realty Co., Inc........ 5,500 61,531
Developers Diversified Realty
Corp........................... 14,550 208,247
Meditrust Corp................... 7,600 94,525
-----------
495,816
-----------
RESTAURANTS -- 0.3%
Advantica Restaurant Group, Inc.
*.............................. 8,745 43,725
-----------
TOTAL COMMON STOCKS
(Identified Cost $1,104,748)... 740,412
-----------
PREFERRED STOCKS -- 1.9% OF NET ASSETS
FINANCIAL SERVICES -- 0.1%
Hvide Capital Trust, 6.500%...... 3,000 31,500
-----------
FOREIGN ISSUER -- 0.9%
Philippine Long Distance
Telephone Co., $3.50, GDS...... 3,450 163,875
-----------
TELECOMMUNICATIONS -- 0.1%
Hyperion Telecommunications,
Inc., 12.875% PIK.............. 17 15,242
-----------
UTILITIES -- 0.8%
Central Maine Power Co.,
3.500%......................... 610 29,890
Niagara Mohawk Power Corp.,
3.400%......................... 560 33,600
Niagara Mohawk Power Corp.,
3.600%......................... 870 53,505
Niagara Mohawk Power Corp.,
4.100%......................... 390 27,885
-----------
144,880
-----------
TOTAL PREFERRED STOCKS
(Identified Cost $431,809)..... 355,497
-----------
</TABLE>
47
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -----------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENT -- 1.9% OF NET ASSETS
Repurchase Agreement with State
Street Bank and Trust Co.,
dated 3/31/99 at 4.000% to be
repurchased at $343,038 on
4/1/99 collateralized by
$275,000 U.S. Treasury Bond,
8.125%, due 8/15/21 with a
value of $352,000.............. USD 343,000 $ 343,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $343,000)..... 343,000
-----------
TOTAL INVESTMENTS -- 98.3%
(IDENTIFIED COST $21,763,057)
@................................ 17,966,971
Cash and Other Assets, Less
Liabilities -- 1.7%.......... 306,148
-----------
NET ASSETS -- 100%................. $18,273,119
-----------
-----------
</TABLE>
! See Note 1.
# Step Bond: Coupon is zero or below market rate for an initial period and
then increases at a specified date and rate.
PIK All or a portion of income may be received as additional securities.
++ Floating Rate Bond: Coupon is six month London Interbank Offered Rate
(LIBOR) plus .8125%.
144A Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
^ Security in default.
* Non-income producing security.
@ At March 31, 1999, the net unrealized depreciation on investments based on
cost of $21,763,057 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 $565,088 and $4,361,174, respectively, resulting in net
unrealized depreciation of $3,796,086.
<TABLE>
<C> <S>
Key to Abbreviations:
ADR: American Depositary Receipts
CAD: Canadian Dollar
GDS: Global Depositary Shares
USD: United States Dollar
</TABLE>
See accompanying notes to financial statements.
48
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
<S> <C> <C>
- -----------------------------------------------------------------
BONDS AND NOTES -- 97.2% OF NET ASSETS
NON-CONVERTIBLE BONDS -- 97.2%
AUTO & RELATED -- 1.3%
Dana Corp., 6.250%, 3/01/04........... $ 200,000 $ 200,438
-----------
BANKS/SAVINGS & LOANS -- 4.3%
BankAmerica Corp., 7.200%, 4/15/06.... 50,000 52,524
Capital One Bank, 6.375%, 2/15/03..... 590,000 591,794
-----------
644,318
-----------
FINANCIAL SERVICES -- 19.4%
Asset Securitization Corp., 7.010%,
10/13/26............................ 381,492 390,190
Associates Manufactured Housing,
6.275%, 3/15/28..................... 450,000 452,862
Bear Stearns Cos., Inc., 6.150%,
3/02/04............................. 350,000 346,021
Commercial Credit Co., 6.500%,
6/01/05............................. 50,000 50,721
EQCC Home Equity Loan Trust, 5.150%,
9/15/08............................. 105,692 103,383
Ford Motor Credit Co., 7.500%,
1/15/03............................. 50,000 52,702
Green Tree Financial Corp., 6.080%,
3/01/30............................. 350,000 349,860
Household Finance Corp., 5.875%,
9/25/04............................. 450,000 445,068
Morgan Stanley Dean Witter & Co.,
5.625%, 1/20/04..................... 250,000 246,883
Nomura Asset Securities Corp., 6.280%,
3/17/28............................. 464,777 470,707
-----------
2,908,397
-----------
FOOD -- 1.0%
Dole Food, Inc., 6.375%, 10/01/05..... 150,000 144,957
-----------
FOREIGN GOVERNMENT/AGENCY -- 6.6%
Government of Poland, 5.000%, 10/27/14
(step to 6.000% on 10/27/02) #...... 475,000 438,187
Republic of South Africa, 8.375%,
10/17/06............................ 550,000 544,500
-----------
982,687
-----------
FOREIGN ISSUER -- 5.4%
Enersis SA, 6.900%, 12/01/06.......... 50,000 47,337
Perez Companc SA, 8.125%, 7/15/07
144A................................ 525,000 467,250
Tenaga Nasional Berhad, 7.625%,
4/29/07 144A........................ 325,000 292,006
-----------
806,593
-----------
GOVERNMENT AGENCIES -- 19.1%
Federal Home Loan Mortgage Corp.,
5.000%, 1/15/04..................... 1,700,000 1,659,625
Federal Home Loan Mortgage Corp.,
5.500%, 3/01/13..................... 510,907 497,971
Federal Home Loan Mortgage Corp.,
6.000%, 11/01/12.................... 492,724 489,644
Federal National Mortgage Association,
5.500%, 4/25/06..................... 150,000 149,577
</TABLE>
49
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -----------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES -- CONTINUED
GOVERNMENT AGENCIES -- CONTINUED
Federal National Mortgage Association,
6.500%, 2/01/11..................... $ 64,637 $ 65,303
-----------
2,862,120
-----------
HEALTH CARE -- PRODUCTS -- 1.6%
Bausch & Lomb, Inc., 6.500%,
8/01/05............................. 250,000 242,693
-----------
OIL & GAS -- 4.7%
Pioneer Natural Resources Co., 6.500%,
1/15/08............................. 400,000 324,624
R & B Falcon Corp., 6.500%, 4/15/03... 450,000 378,000
-----------
702,624
-----------
PAPER PRODUCTS -- 1.0%
Temple-Inland, Inc., 6.750%,
3/01/09............................. 150,000 148,417
-----------
REAL ESTATE INVESTMENT TRUSTS -- 13.4%
American Health Properties, Inc.,
7.050%, 1/15/02..................... 525,000 514,647
Highwoods Realty LP, 6.750%,
12/01/03............................ 500,000 487,185
Oasis Residential, Inc., 6.750%,
11/15/01............................ 500,000 485,585
Trinet Corporate Realty Trust, Inc.,
6.750%, 3/01/03..................... 550,000 526,256
-----------
2,013,673
-----------
SECURITIES -- 3.7%
Lehman Brothers Holdings, Inc.,
7.125%, 9/15/03..................... 540,000 551,664
-----------
TELECOMMUNICATIONS -- 3.7%
TCI Communications, Inc., 6.875%,
2/15/06............................. 525,000 549,266
-----------
TEXTILE & APPAREL -- 1.3%
Tommy Hilfiger Corp., 6.500%,
6/01/03............................. 200,000 196,018
-----------
TOBACCO -- 3.4%
RJR Nabisco, Inc., 7.625%, 9/15/03.... 525,000 513,487
-----------
TRUCKING & LEASING -- 2.4%
Amerco, 7.490%, 9/18/01............... 350,000 361,893
-----------
U.S. GOVERNMENT -- 0.2%
U.S. Treasury Notes, 6.000%,
10/15/99............................ 25,000 25,164
-----------
</TABLE>
50
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -----------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES -- CONTINUED
UTILITIES -- 4.7%
KN Energy, Inc., 6.450%, 3/01/03...... $ 550,000 $ 557,573
Texas Utilities Co., 5.940%,
10/15/01............................ 150,000 151,235
-----------
708,808
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $14,831,156)....... 14,563,217
-----------
TOTAL BONDS AND NOTES
(Identified Cost $14,831,156)....... 14,563,217
-----------
SHORT-TERM INVESTMENT -- 1.1% OF NET ASSETS
Repurchase Agreement with State Street
Bank and Trust Co., dated 3/31/99 at
4.000% to be repurchased at $161,018
on 4/1/99 collateralized by $140,000
U.S. Treasury Bond, 7.250%, due
8/15/22 with a value of $164,850.... 161,000 161,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $161,000).......... 161,000
-----------
TOTAL INVESTMENTS -- 98.3%
(IDENTIFIED COST $14,992,156) @....... 14,724,217
Cash and Other Assets, Less
Liabilities -- 1.7%............... 255,744
-----------
NET ASSETS -- 100%...................... $14,979,961
-----------
-----------
</TABLE>
! See Note 1.
# Step Bond: Coupon is zero or below market rate for an initial period and
then increases at a specified date and rate.
144A Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
@ At March 31, 1999, the net unrealized depreciation on investments based on
cost of $14,992,156 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 $72,793 and $340,732, respectively, resulting in net
unrealized depreciation of $267,939.
See accompanying notes to financial statements.
51
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
<S> <C> <C> <C>
- -------------------------------------------------------------------
BONDS AND NOTES -- 94.5% OF NET ASSETS
NON-CONVERTIBLE BONDS -- 77.3%
AIR TRANSPORT -- 3.0%
Atlas Air, Inc., 7.680%,
1/02/14........................ USD 3,974,587 $ 4,003,681
------------
BANKS/SAVINGS & LOANS -- 0.4%
First Union Institutional Trust,
7.850%, 1/01/27................ 500,000 515,660
------------
CANADIAN -- 17.0%
Canadian Government, Zero Coupon
Bond, 6/01/25.................. CAD 31,550,000 5,333,552
Hydro Quebec, Zero Coupon Bond,
8/15/20........................ 7,500,000 1,410,612
MacMillan Bloedel Ltd., 7.700%,
2/15/26........................ USD 305,000 287,560
Milit-Air, Inc., 5.750%, 6/30/19
144A........................... CAD 1,800,000 1,222,785
New Brunswick FM Project, Zero
Coupon Bond, 11/30/27 (step to
6.470% on 5/30/03) 144A #...... 500,000 270,662
Ontario Hydro, Zero Coupon Bond,
10/15/21....................... 850,000 154,940
Ontario Hydro, 8.900%, 8/18/22... 1,175,000 1,092,284
Province of Alberta, 5.930%,
9/16/16........................ 705,750 493,866
Province of British Columbia,
Zero Coupon Bond, 8/23/13...... 5,000,000 1,457,809
Province of British Columbia,
Zero Coupon Bond, 6/09/14...... 1,000,000 277,655
Province of British Columbia,
Zero Coupon Bond, 9/05/20...... 3,300,000 641,057
Province of British Columbia,
Zero Coupon Bond, 6/09/22...... 4,000,000 702,479
Province of British Columbia,
Zero Coupon Bond, 8/19/22...... 4,195,000 728,577
Province of British Columbia,
Zero Coupon Bond, 11/19/27..... 6,500,000 835,745
Province of British Columbia,
8.000%, 9/08/23................ 250,000 212,074
Province of Manitoba, 6.500%,
9/22/17........................ 1,825,000 1,334,769
Province of Manitoba, 7.750%,
12/22/25....................... 3,100,000 2,634,671
Province of Newfoundland, 6.150%,
4/17/28........................ 500,000 338,996
Province of Saskatchewan, Zero
Coupon Bond, 4/10/14........... 2,500,000 702,638
Province of Saskatchewan, 5.750%,
3/05/29........................ 3,550,000 2,367,812
Province of Saskatchewan
(Certificate of Deposit), Zero
Coupon Bond, 2/04/22........... 1,281,000 234,895
Province of Saskatchewan
(Certificate of Deposit), Zero
Coupon Bond, 5/30/25........... 1,250,000 190,392
------------
22,925,830
------------
</TABLE>
52
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
COMMUNICATIONS -- 0.2%
Arch Communications Group, Inc.,
Zero Coupon Bond, 3/15/08 (step
to 10.875% on 3/15/01) #....... USD 575,000 $ 235,750
------------
COMPUTERS -- 3.6%
Seagate Technology, Inc., 7.370%,
3/01/07........................ 2,000,000 1,872,460
Seagate Technology, Inc., 7.450%,
3/01/37........................ 3,000,000 2,840,910
Seagate Technology, Inc., 7.875%,
3/01/17........................ 200,000 180,508
------------
4,893,878
------------
ELECTRONICS -- 0.2%
Pioneer Standard Electronics,
Inc., 8.500%, 8/01/06.......... 250,000 237,586
------------
ENTERTAINMENT -- 3.8%
Time Warner Entertainment Co.,
6.875%, 6/15/18................ 410,000 406,810
Time Warner Entertainment Co.,
6.950%, 1/15/28................ 2,250,000 2,247,525
Time Warner Entertainment Co.,
7.570%, 2/01/24................ 2,300,000 2,445,176
------------
5,099,511
------------
FINANCIAL SERVICES -- 0.7%
Security Capital Group, Inc.,
7.700%, 6/15/28................ 1,000,000 887,030
------------
FOOD & BEVERAGE -- 0.7%
ConAgra, Inc., 7.000%,
10/01/28....................... 1,000,000 990,730
------------
FOREIGN GOVERNMENT/AGENCY -- 4.4%
New South Wales Treasury, Zero
Coupon Bond, 11/23/20.......... AUD 6,000,000 1,073,841
Republic of Brazil C Bond,
8.000%, 4/15/14 PIK............ USD 2,944,044 1,873,295
Republic of South Africa, 8.500%,
6/23/17........................ 1,125,000 961,875
Republic of South Africa,
12.000%, 2/28/05............... ZAR 4,250,000 620,667
Republic of South Africa,
12.500%, 12/21/06.............. 8,600,000 1,239,495
Republic of South Africa,
13.000%, 8/31/10............... 1,500,000 219,123
------------
5,988,296
------------
FOREIGN ISSUER -- 12.1%
Bangkok Bank Public Co. Ltd.,
9.025%, 3/15/29 144A........... USD 2,250,000 1,608,008
Cerro Negro Finance Ltd., 7.900%,
12/01/20 144A.................. 500,000 365,000
Embotelladora Andina SA, 7.000%,
10/01/07....................... 700,000 652,302
Embotelladora Andina SA, 7.625%,
10/01/27....................... 250,000 210,670
Enersis SA, 7.400%, 12/01/16..... 3,050,000 2,839,510
Industrial Finance Corp. of
Thailand, 6.875%, 4/01/03
144A........................... 575,000 517,816
Korea Electric Power Corp.,
7.400%, 4/01/16................ 469,605 429,642
</TABLE>
53
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
FOREIGN ISSUER -- CONTINUED
PDVSA Finance Ltd., 7.500%,
11/15/28....................... USD 2,000,000 $ 1,476,840
Perez Companc SA, 8.125%, 7/15/07
144A........................... 350,000 311,500
Pindo Deli Finance Mauritius
Ltd., 10.875%, 10/01/27........ 100,000 46,500
Samsung Electronics Co. Ltd.,
7.700%, 10/01/27 144A.......... 1,250,000 950,000
Tata Electric Co., 8.500%,
8/19/17 144A................... 1,500,000 1,200,000
Telekom Malaysia Berhad, 7.875%,
8/01/25 144A................... 2,000,000 1,625,880
Tenaga Nasional Berhad, 7.500%,
11/01/25 144A.................. 5,390,000 3,894,005
Total Access Communication Public
Co. Ltd., 8.375%, 11/04/06
144A........................... 150,000 106,125
------------
16,233,798
------------
GOVERNMENT AGENCIES -- 2.3%
Federal Home Loan Mortgage Corp.,
6.000%, 4/15/28................ 1,000,000 935,000
Federal National Mortgage
Association, Zero Coupon Bond,
10/29/07....................... NZD 6,850,000 2,104,048
------------
3,039,048
------------
HEALTH CARE -- PRODUCTS -- 0.7%
Bausch & Lomb, Inc., 7.125%,
8/01/28........................ USD 1,000,000 919,890
------------
HEALTH CARE -- SERVICES -- 0.9%
Columbia/HCA Healthcare Corp.,
7.050%, 12/01/27............... 1,500,000 1,172,310
------------
HOME BUILDERS -- 2.0%
Pulte Corp., 7.000%, 12/15/03.... 188,000 183,531
Pulte Corp., 7.300%, 10/24/05.... 200,000 194,752
Pulte Corp., 7.625%, 10/15/17.... 2,500,000 2,324,250
------------
2,702,533
------------
MANUFACTURING -- 0.1%
FMC Corp., 6.750%, 1/16/05....... 170,000 154,700
------------
OIL & GAS -- 3.9%
Mitchell Energy & Development
Corp., 6.750%, 2/15/04......... 300,000 291,438
Pioneer Natural Resources Co.,
7.200%, 1/15/28................ 1,000,000 665,410
R & B Falcon Corp., 7.375%,
4/15/18........................ 2,750,000 1,990,587
Seagull Energy Corp., 7.500%,
9/15/27........................ 1,600,000 1,215,088
Tennessee Gas Pipeline Co.,
7.000%, 10/15/28............... 750,000 738,368
Union Pacific Resources Group,
Inc., 7.150%, 5/15/28.......... 350,000 312,722
------------
5,213,613
------------
</TABLE>
54
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
PAPER PRODUCTS -- 0.3%
Westvaco Corp., 7.000%,
8/15/23........................ USD 500,000 $ 470,800
------------
RAIL -- TRANSPORT -- 0.1%
Missouri Pacific Railroad Co.,
5.000%, 1/01/45................ 275,000 144,719
------------
REAL ESTATE INVESTMENT TRUSTS --
5.6%
AMB Property Corp., 7.500%,
6/30/18........................ 1,000,000 953,570
Camden Property Trust, 7.000%,
11/15/06....................... 500,000 479,265
First Industrial, 7.500%,
12/01/17....................... 2,500,000 2,137,725
First Industrial, 7.600%,
7/15/28........................ 1,250,000 1,095,737
Highwoods Realty LP, 7.500%,
4/15/18........................ 1,000,000 912,270
Susa Partnership LP, 7.500%,
12/01/27....................... 1,750,000 1,575,368
Trinet Corporate Realty Trust,
Inc., 7.700%, 7/15/17.......... 500,000 457,620
------------
7,611,555
------------
RETAIL -- GENERAL -- 0.3%
Woolworth Corp., 8.500%,
1/15/22........................ 500,000 365,000
------------
SECURITIES -- 1.1%
Lehman Brothers, Inc., 6.625%,
2/15/08........................ 1,500,000 1,477,590
------------
SUPRANATIONAL -- 2.9%
International Bank for
Reconstruction & Development,
Zero Coupon Bond, 8/20/07...... NZD 9,650,000 3,039,635
International Bank for
Reconstruction & Development,
8.000%, 5/23/07................ 1,505,000 873,072
------------
3,912,707
------------
TAXABLE MUNICIPAL -- 0.6%
Orange County, California Pension
Obligation, Zero Coupon Bond,
9/01/16........................ USD 2,500,000 760,475
------------
TELECOMMUNICATIONS -- 0.8%
TCI Communications, Inc., 7.875%,
2/15/26........................ 970,000 1,107,468
------------
TEXTILE & APPAREL -- 1.2%
Burlington Industries, Inc.,
7.250%, 8/01/27................ 250,000 221,450
Fruit of the Loom, Inc., 7.375%,
11/15/23....................... 550,000 458,282
Kellwood Co., 7.625%, 10/15/17... 1,000,000 882,690
------------
1,562,422
------------
TOBACCO -- 4.4%
Philip Morris Cos., Inc., 7.750%,
1/15/27........................ 2,350,000 2,472,693
RJR Nabisco, Inc., 7.625%,
9/15/03........................ 500,000 489,035
</TABLE>
55
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
TOBACCO -- CONTINUED
RJR Nabisco, Inc., 8.500%,
7/01/07........................ USD 1,000,000 $ 1,055,320
RJR Nabisco, Inc., 8.750%,
8/15/05........................ 150,000 160,328
RJR Nabisco, Inc., 9.250%,
8/15/13........................ 1,650,000 1,811,155
------------
5,988,531
------------
TRANSPORTATION -- 0.2%
American President Cos. Ltd.,
7.125%, 11/15/03............... 500,000 260,000
American President Cos. Ltd.,
8.000%, 1/15/24................ 100,000 50,000
------------
310,000
------------
U.S. GOVERNMENT -- 1.3%
U.S. Treasury Bonds, 5.500%,
8/15/28........................ 1,050,000 1,004,882
U.S. Treasury Strips, Zero Coupon
Bond, 8/15/20.................. 2,500,000 692,750
------------
1,697,632
------------
UTILITIES -- 2.5%
Boston Edison Co., 7.800%,
3/15/23........................ 250,000 254,332
Commonwealth Edison Co., 4.750%,
12/01/11....................... 135,000 116,988
KN Capital Trust, 7.630%,
4/15/28........................ 2,000,000 2,001,560
KN Energy, Inc., 7.250%,
3/01/28........................ 1,000,000 1,019,520
------------
3,392,400
------------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost
$104,872,283).................. 104,015,143
------------
CONVERTIBLE BONDS -- 17.2%
COMPUTERS -- 0.1%
Maxtor Corp., 5.750%, 3/01/12.... 150,000 112,500
------------
DIVERSIFIED OPERATIONS -- 2.0%
Ogden Corp., 5.750%, 10/20/02.... 600,000 565,500
Thermo Electron Corp., 4.250%,
1/01/03 144A................... 2,350,000 2,079,750
------------
2,645,250
------------
ELECTRONICS -- 0.1%
Lam Research Corp., 5.000%,
9/01/02........................ 100,000 84,000
Richardson Electronics Ltd.,
7.250%, 12/15/06............... 50,000 37,000
Zenith Corp., 6.250%, 4/01/11.... 71,000 21,300
------------
142,300
------------
</TABLE>
56
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
ENVIRONMENTAL SERVICES -- 1.2%
Thermo TerraTech, Inc., 4.625%,
5/01/03........................ USD 250,000 $ 210,938
Thermo TerraTech, Inc., 4.625%,
5/01/03 144A................... 1,650,000 1,392,187
------------
1,603,125
------------
FINANCIAL SERVICES -- 4.3%
Bell Atlantic Financial Services,
4.250%, 9/15/05................ 3,925,000 4,307,687
Bell Atlantic Financial Services,
5.750%, 4/01/03................ 1,390,000 1,473,400
------------
5,781,087
------------
FOREIGN ISSUER -- 1.8%
Bangkok Bank Public Co. Ltd.,
4.589%, 3/03/04................ 500,000 232,500
Banpu Public Co., 2.750%,
4/10/03........................ 500,000 400,000
Burns, Philp, 5.500%, 4/30/04.... 590,000 293,525
Empresas ICA Sociedad, 5.000%,
3/15/04........................ 100,000 66,000
Loxley Public Co. Ltd., 2.500%,
4/04/01........................ 1,150,000 115,000
Samsung Display Devices, 0.250%,
3/12/06........................ 260,000 263,900
Siam Commercial Bank Public Co.,
3.250%, 1/24/04................ 100,000 44,063
Ssangyong Oil Refining Co., Inc.,
3.000%, 12/31/04............... 100,000 63,750
Telekom Malaysia Berhad, 4.000%,
10/03/04....................... 1,075,000 900,312
------------
2,379,050
------------
FREIGHT TRANSPORTATION -- 0.1%
Builders Transportation, Inc.,
6.500%, 5/01/11 ^.............. 129,000 161
Worldway Corp., 6.250%,
4/15/11........................ 250,000 203,750
------------
203,911
------------
HEALTH CARE -- DRUGS -- 0.3%
Chiron Corp., 1.900%, 11/17/00... 300,000 288,375
NABI, Inc., 6.500%, 2/01/03...... 100,000 71,000
------------
359,375
------------
HEALTH CARE -- SERVICES -- 0.1%
Healthsouth Corp., 3.250%,
4/01/03........................ 250,000 203,750
------------
INSURANCE -- 3.6%
Loews Corp., 3.125%, 9/15/07..... 5,725,000 4,880,563
------------
MACHINERY -- 0.0%
Intevac, Inc., 6.500%, 3/01/04... 100,000 50,500
------------
</TABLE>
57
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
- -------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES -- CONTINUED
MULTI-INDUSTRY -- 0.8%
Thermo Instrument Systems, Inc.,
4.500%, 10/15/03 144A.......... USD 1,200,000 $ 1,069,500
------------
OIL & GAS -- 1.8%
Baker Hughes, Inc., Zero Coupon
Bond, 5/05/08.................. 2,424,000 1,684,680
Diamond Offshore Drilling, Inc.,
3.750%, 2/15/07................ 350,000 364,000
Houston Industries, Inc., 6.000%,
3/15/12........................ 335,000 319,925
------------
2,368,605
------------
PUBLISHING -- 0.4%
Scholastic Corp., 5.000%, 8/15/05
144A........................... 540,000 519,075
------------
REAL ESTATE INVESTMENT TRUSTS --
0.5%
Federal Realty Investors Trust,
5.250%, 10/28/03............... 835,000 734,800
------------
RESTAURANTS -- 0.1%
Shoney's, Inc., Zero Coupon Bond,
4/11/04........................ 525,000 126,000
------------
RETAIL -- SPECIALTY -- 0.0%
CML Group, Inc., 5.500%, 1/15/03
^.............................. 50,000 1,000
------------
TOTAL CONVERTIBLE BONDS
(Identified Cost
$24,168,157)................... 23,180,391
------------
TOTAL BONDS AND NOTES
(Identified Cost
$129,040,440).................. 127,195,534
------------
<CAPTION>
SHARES
<S> <C> <C> <C>
- -------------------------------------------------------------------
PREFERRED STOCKS -- 1.5% OF NET ASSETS
CHEMICALS -- MAJOR -- 0.1%
E.I. du Pont DeNemours & Co.,
$3.50.......................... 2,200 152,900
------------
METALS -- 0.2%
Alcoa, Inc., $3.75............... 3,350 255,438
------------
OIL & GAS -- 0.5%
Weatherford International, Inc.,
5.000%......................... 20,500 627,812
------------
REAL ESTATE INVESTMENT TRUSTS --
0.0%
Camden Property Trust, $2.25..... 3,000 70,125
------------
UTILITIES -- 0.7%
Cleco Corp., 4.750%.............. 688 56,330
Connecticut Light & Power Co.,
$2.20.......................... 263 8,416
</TABLE>
58
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
<TABLE>
<CAPTION>
SHARES VALUE +
- -------------------------------------------------------------------
<S> <C> <C> <C>
PREFERRED STOCKS -- CONTINUED
UTILITIES -- CONTINUED
Dayton Power & Light Co.,
3.750%......................... 701 $ 47,142
Del Marva Power & Light Co.,
4.000%......................... 350 23,494
Illinois Power Co., 4.080%....... 400 15,200
Illinois Power Co., 4.200%....... 100 3,975
Jersey Central Power & Light Co.,
4.000%......................... 3,510 252,720
MDU Resources Group, Inc.,
5.100%......................... 960 88,560
Northern Indiana Public Service
Co., 4.250%.................... 2,110 150,337
Northern States Power Co.,
$4.08.......................... 50 3,825
Northern States Power Co.,
$4.10.......................... 100 8,000
Public Service Electric & Gas
Co., 4.080%.................... 300 23,100
San Diego Gas & Electric Co.,
4.500%......................... 100 1,625
Southern California Edison Co.,
4.240%......................... 5,700 118,275
Southern California Edison Co.,
4.320%......................... 8,080 144,430
------------
945,429
------------
TOTAL PREFERRED STOCKS
(Identified Cost $1,838,370)... 2,051,704
------------
WARRANTS -- 0.0% OF NET ASSETS
COMPUTERS -- 0.0%
Streamlogic Corp., expiring
10/7/01 *...................... 48 0
------------
TOTAL WARRANTS
(Identified Cost $0)........... 0
------------
<CAPTION>
FACE
AMOUNT
<S> <C> <C> <C>
- -------------------------------------------------------------------
SHORT-TERM INVESTMENT -- 3.2% OF NET ASSETS
Repurchase Agreement with State
Street Bank and Trust Co.,
dated 3/31/99 at 4.000% to be
repurchased at $4,299,478 on
4/1/99 collateralized by
$3,430,000 U.S. Treasury Bond,
8.125%, due 8/15/21 with a
value of $4,390,400............ USD 4,299,000 4,299,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $4,299,000)... 4,299,000
------------
TOTAL INVESTMENTS -- 99.2%
(IDENTIFIED COST $135,177,810)
@................................ 133,546,238
Cash and Other Assets, Less
Liabilities -- 0.8%.......... 1,037,667
------------
NET ASSETS -- 100%................. $134,583,905
------------
------------
</TABLE>
59
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS -- AS OF MARCH 31, 1999
(UNAUDITED) -- CONTINUED
! See Note 1.
144A Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
# Step Bond: Coupon is zero or below market rate for an initial period and
then increases at a specified date and rate.
PIK All or a portion of income may be received as additional securities.
^ Security in default.
* Non-income producing security.
@ At March 31, 1999, the net unrealized depreciation on investments based on
cost of $135,177,810 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 $6,549,869 and $8,181,441, respectively, resulting in net
unrealized depreciation of $1,631,572.
<TABLE>
<C> <S>
Key to Abbreviations:
AUD: Australian Dollar
CAD: Canadian Dollar
NZD: New Zealand Dollar
USD: United States Dollar
ZAR: South African Rand
</TABLE>
See accompanying notes to financial statements.
60
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
California Tax- Core
Free Income Fixed Income
Fund Fund
---------------- -------------
<S> <C> <C>
ASSETS
Investments at value... $ 20,484,991 $ 21,315,782
Cash................... 533 390
Receivable for:
Securities sold...... 0 0
Dividend and interest
-- net............. 293,263 277,145
Due from the adviser
(Note 3)............. 10,608 9,232
Other assets (Note
1H).................. 0 4,968
---------------- -------------
20,789,395 21,607,517
---------------- -------------
LIABILITIES
Payable for:
Securities
purchased.......... 0 0
Fund shares
redeemed........... 0 0
Accrued expenses:
Management fees (Note
3)................. 8,714 8,942
Trustee's fees (Note
3A)................ 872 877
Administrative
fees............... 963 1,098
Other.................. 22,240 27,412
---------------- -------------
32,789 38,329
---------------- -------------
NET ASSETS............... $ 20,756,606 $ 21,569,188
---------------- -------------
---------------- -------------
Net Assets consist of:
Capital paid in...... $ 20,047,517 $ 21,278,003
Undistributed (or
Distributions in
excess of) net
investment
income............. (10,200) 307,286
Accumulated net
realized gain
(loss)............. (11,695) 20,900
Unrealized
appreciation
(depreciation) on
investments and
foreign currency --
net................ 730,984 (37,001)
---------------- -------------
NET ASSETS............... $ 20,756,606 $ 21,569,188
---------------- -------------
---------------- -------------
Shares of beneficial
interest outstanding,
no par value........... 1,974,614 2,023,763
---------------- -------------
---------------- -------------
Net asset value, offering
and redemption price
per share.............. $ 10.51 $ 10.66
Identified cost of
investments............ $ 19,754,007 $ 21,352,783
---------------- -------------
---------------- -------------
</TABLE>
See accompanying notes to financial statements.
61
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
<TABLE>
<CAPTION>
Core Fixed High Yield Intermediate Duration Investment Grade
Growth Income Fixed Income Fixed Income Fixed Income
Fund Fund Fund Fund Fund
------------ ------------- ------------- ---------------------- -----------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at value... $ 22,400,394 $ 276,360,227 $ 17,966,971 $ 14,724,217 $ 133,546,238
Cash................... 434 632 706 234 21,980
Receivable for:
Securities sold...... 2,458,560 0 0 94,708 0
Dividend and interest
-- net............. 7,232 4,186,934 331,263 182,025 2,098,120
Due from the adviser
(Note 3)............. 7,614 0 13,766 7,745 7,577
Other assets (Note
1H).................. 0 0 0 0 0
------------ ------------- ------------- ------------ -----------------
24,874,234 280,547,793 18,312,706 15,008,929 135,673,915
------------ ------------- ------------- ------------ -----------------
LIABILITIES
Payable for:
Securities
purchased.......... 241,910 0 0 0 1,013,028
Fund shares
redeemed........... 834,813 81,000 0 0 0
Accrued expenses:
Management fees (Note
3)................. 10,398 116,927 9,034 5,052 44,670
Trustee's fees (Note
3A)................ 877 877 872 853 877
Administrative
fees............... 1,065 10,599 897 429 5,791
Other.................. 20,268 40,744 28,784 22,634 25,644
------------ ------------- ------------- ------------ -----------------
1,109,331 250,147 39,587 28,968 1,090,010
------------ ------------- ------------- ------------ -----------------
NET ASSETS............... $ 23,764,903 $ 280,297,646 $ 18,273,119 $ 14,979,961 $ 134,583,905
------------ ------------- ------------- ------------ -----------------
------------ ------------- ------------- ------------ -----------------
Net Assets consist of:
Capital paid in...... $ 16,215,002 $ 283,231,623 $ 25,538,036 $ 15,293,514 $ 135,772,814
Undistributed (or
Distributions in
excess of) net
investment
income............. 31,125 5,882,475 613,953 (9,217) (21,094)
Accumulated net
realized gain
(loss)............. 2,456,490 945,609 (4,082,786) (36,397) 462,586
Unrealized
appreciation
(depreciation) on
investments and
foreign currency --
net................ 5,062,286 (9,762,061) (3,796,084) (267,939) (1,630,401)
------------ ------------- ------------- ------------ -----------------
NET ASSETS............... $ 23,764,903 $ 280,297,646 $ 18,273,119 $ 14,979,961 $ 134,583,905
------------ ------------- ------------- ------------ -----------------
------------ ------------- ------------- ------------ -----------------
Shares of beneficial
interest outstanding,
no par value........... 1,819,528 22,884,940 2,208,658 1,539,325 11,617,778
------------ ------------- ------------- ------------ -----------------
------------ ------------- ------------- ------------ -----------------
Net asset value, offering
and redemption price
per share.............. $ 13.06 $ 12.25 $ 8.27 $ 9.73 $ 11.58
Identified cost of
investments............ $ 17,338,108 $ 286,123,366 $ 21,763,057 $ 14,992,156 $ 135,177,810
------------ ------------- ------------- ------------ -----------------
------------ ------------- ------------- ------------ -----------------
</TABLE>
See accompanying notes to financial statements.
62
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
California Tax- Core
Free Income Fixed Income
Fund Fund
---------------- -------------
<S> <C> <C>
INVESTMENT INCOME
Dividends*............. $ 0 $ 0
Interest............... 518,429 667,278
---------------- -------------
518,429 667,278
---------------- -------------
Expenses
Management fees (Note
3)................. 50,543 49,668
Trustee's fees and
expenses (Note
3A)................ 1,407 1,412
Administrative
fees............... 4,666 4,645
Custodian and
accounting fees.... 26,109 25,525
Transfer agent
fees............... 9,758 5,739
Audit and tax
services fees...... 6,732 6,732
Registration fees.... 7,304 11,610
Amortization of
organization
expenses (Note
1H)................ 0 1,194
Other expenses....... 7,583 7,376
---------------- -------------
Total expenses....... 114,102 113,901
Less expenses waived
and reimbursed by
the investment
adviser (Note 3)... (48,395) (49,332)
---------------- -------------
Net expenses......... 65,707 64,569
---------------- -------------
Net investment
income............... 452,722 602,709
---------------- -------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain
(loss) on
investments and
foreign
currency....... (8,951) 104,478
Change in unrealized
appreciation
(depreciation) on
investments and
foreign
currency....... (130,022) (759,374)
---------------- -------------
Net realized gain
(loss) and change
in unrealized
appreciation
(depreciation)... (138,973) (654,896)
---------------- -------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS............. $ 313,749 $ (52,187)
---------------- -------------
---------------- -------------
</TABLE>
*Net of foreign withholding taxes of $214 and $1,589 for the Core Growth and
High Yield Fixed Income Funds, respectively.
See accompanying notes to financial statements.
63
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
<TABLE>
<CAPTION>
Intermediate
Core Fixed High Yield Duration Investment Grade
Growth Income Fixed Income Fixed Income Fixed Income
Fund Fund Fund Fund Fund
------------ ------------ ------------- ------------- -----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends*............. $ 78,577 $ 212,344 $ 77,041 $ 0 $ 68,339
Interest............... 30,893 11,844,771 1,659,629 412,907 4,916,703
------------ ------------ ------------- ------------- -----------------
109,470 12,057,115 1,736,670 412,907 4,985,042
------------ ------------ ------------- ------------- -----------------
Expenses
Management fees (Note
3)................. 59,087 658,158 76,968 24,242 255,190
Trustee's fees and
expenses (Note
3A)................ 1,412 1,412 1,407 1,414 1,412
Administrative
fees............... 5,414 59,032 5,903 2,486 29,355
Custodian and
accounting fees.... 19,672 67,043 30,538 15,046 48,596
Transfer agent
fees............... 4,271 10,560 4,604 3,075 7,709
Audit and tax
services fees...... 7,480 12,465 11,967 7,429 11,468
Registration fees.... 7,528 14,343 8,249 9,245 10,206
Amortization of
organization
expenses (Note
1H)................ 0 0 0 0 0
Other expenses....... 7,747 19,137 7,998 7,256 12,228
------------ ------------ ------------- ------------- -----------------
Total expenses....... 112,611 842,150 147,634 70,193 376,164
Less expenses waived
and reimbursed by
the investment
adviser (Note 3)... (35,797) 0 (51,424) (36,859) (25,278)
------------ ------------ ------------- ------------- -----------------
Net expenses......... 76,814 842,150 96,210 33,334 350,886
------------ ------------ ------------- ------------- -----------------
Net investment
income............... 32,656 11,214,965 1,640,460 379,573 4,634,156
------------ ------------ ------------- ------------- -----------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain
(loss) on
investments and
foreign
currency....... 2,512,493 1,375,762 (4,076,358) 8,319 567,467
Change in unrealized
appreciation
(depreciation) on
investments and
foreign
currency....... 3,146,145 5,857,601 5,862,358 (63,476) 2,954,895
------------ ------------ ------------- ------------- -----------------
Net realized gain
(loss) and change
in unrealized
appreciation
(depreciation)... 5,658,638 7,233,363 1,786,000 (55,157) 3,522,362
------------ ------------ ------------- ------------- -----------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS............. $ 5,691,294 $ 18,448,328 $ 3,426,460 $ 324,416 $ 8,156,518
------------ ------------ ------------- ------------- -----------------
------------ ------------ ------------- ------------- -----------------
</TABLE>
*Net of foreign withholding taxes of $214 and $1,589 for the Core Growth and
High Yield Fixed Income Funds, respectively.
See accompanying notes to financial statements.
64
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
California Tax-Free Income Fund
-------------------------------------------
Six Months Nine Months
Ended Ended Year Ended
March 31, September 30, December 31,
1999 1998 1997
----------- -------------- -------------
<S> <C> <C> <C>
(Unaudited)
FROM OPERATIONS
Net investment income............ $ 452,722 $ 600,781 $ 716,797
Net realized gain (loss) on
investments and foreign
currency....................... (8,951) 10,232 20,418
Change in unrealized appreciation
(depreciation) on investments
and foreign currency........... (130,022) 320,052 367,627
----------- -------------- -------------
Increase (decrease) in net assets
from operations................ 313,749 931,065 1,104,842
----------- -------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income............ (462,922) (610,963) (719,537)
Net realized gain on
investments.................... 0 0 (41,370)
----------- -------------- -------------
Total distributions............ (462,922) (610,963) (760,907)
----------- -------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of
shares......................... 1,896,000 2,777,897 3,727,583
Net asset value of shares issued
in connection with the
reinvestment of
distributions.................. 71,662 105,335 127,165
Cost of shares redeemed.......... (680,000) (407,000) (836,438)
----------- -------------- -------------
Increase (decrease) in net assets
derived from capital share
transactions................... 1,287,662 2,476,232 3,018,310
----------- -------------- -------------
Total increase (decrease) in
net assets................... 1,138,489 2,796,334 3,362,245
NET ASSETS
Beginning of period.............. 19,618,117 16,821,783 13,459,538
----------- -------------- -------------
End of period.................... $20,756,606 $ 19,618,117 $ 16,821,783
----------- -------------- -------------
----------- -------------- -------------
UNDISTRIBUTED NET INVESTMENT INCOME
End of period.................... $ (10,200) $ 0 $ 6,408
----------- -------------- -------------
----------- -------------- -------------
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares... 180,055 266,053 364,171
Issued in connection with the
reinvestment of
distributions.................. 6,810 10,101 12,386
Redeemed......................... (64,613) (39,014) (82,667)
----------- -------------- -------------
Net change....................... 122,252 237,140 293,890
----------- -------------- -------------
----------- -------------- -------------
</TABLE>
See accompanying notes to financial statements.
65
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Core Fixed Income Fund
----------------------------------------------
Six Months Nine Months Year
Ended Ended Ended
March 31, September 30, December 31,
1999 1998 1997
----------- ----------------- -------------
<S> <C> <C> <C>
(Unaudited)
FROM OPERATIONS
Net investment income............ $ 602,709 $ 842,404 $ 561,849
Net realized gain (loss) on
investments and foreign
currency....................... 104,478 180,769 38,487
Change in unrealized appreciation
(depreciation) on investments
and foreign currency........... (759,374) 376,200 257,800
----------- ----------------- -------------
Increase (decrease) in net assets
from operations................ (52,187) 1,399,373 858,136
----------- ----------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income............ (1,133,614) 0 (560,414)
Net realized gain (loss) on
investments.................... (267,462) (811) (38,618)
----------- ----------------- -------------
Total distributions............ (1,401,076) (811) (599,032)
----------- ----------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of
shares......................... 3,330,586 4,752,797 9,230,953
Net asset value of shares issued
in connection with the
reinvestment of
distributions.................. 1,401,076 811 599,032
Cost of shares redeemed.......... (1,049,967) (2,921,313) (250,000)
----------- ----------------- -------------
Increase (decrease) in net assets
derived from capital share
transactions................... 3,681,695 1,832,295 9,579,985
----------- ----------------- -------------
Total increase (decrease) in
net assets................... 2,228,432 3,230,857 9,839,089
NET ASSETS
Beginning of period.............. 19,340,756 16,109,899 6,270,810
----------- ----------------- -------------
End of period.................... $21,569,188 $ 19,340,756 $ 16,109,899
----------- ----------------- -------------
----------- ----------------- -------------
UNDISTRIBUTED NET INVESTMENT INCOME
End of period.................... $ 307,286 $ 838,191 $ 0
----------- ----------------- -------------
----------- ----------------- -------------
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares... 302,302 437,458 860,234
Issued in connection with the
reinvestment of
distributions.................. 131,433 73 56,248
Redeemed......................... (93,128) (265,932) (23,346)
----------- ----------------- -------------
Net change....................... 340,607 171,599 893,136
----------- ----------------- -------------
----------- ----------------- -------------
</TABLE>
See accompanying notes to financial statements.
66
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Core Growth Fund
-------------------------------------------
Six Months Nine Months
Ended Ended Year Ended
March 31, September 30, December 31,
1999 1998 1997
----------- -------------- -------------
<S> <C> <C> <C>
(Unaudited)
FROM OPERATIONS
Net investment income............ $ 32,656 $ 152,319 $ 281,724
Net realized gain (loss) on
investments and foreign
currency....................... 2,512,493 6,023,380 3,075,110
Change in unrealized appreciation
(depreciation) on investments
and foreign currency........... 3,146,145 (1,620,971) 601,974
----------- -------------- -------------
Increase (decrease) in net assets
from operations................ 5,691,294 4,554,728 3,958,808
----------- -------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income............ (153,835) 0 (284,442)
Net realized gain on
investments.................... (6,056,473) 0 (2,620,841)
----------- -------------- -------------
Total distributions............ (6,210,308) 0 (2,905,283)
----------- -------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of
shares......................... 0 1,842,263 12,883,954
Net asset value of shares issued
in connection with the
reinvestment of
distributions.................. 6,210,308 0 2,905,283
Cost of shares redeemed.......... (2,836,163) (24,030,786) (205,235)
----------- -------------- -------------
Increase (decrease) in net assets
derived from capital share
transactions................... 3,374,145 (22,188,523) 15,584,002
----------- -------------- -------------
Total increase (decrease) in
net assets................... 2,855,131 (17,633,795) 16,637,527
NET ASSETS
Beginning of the period.......... 20,909,772 38,543,567 21,906,040
----------- -------------- -------------
End of the period................ $23,764,903 $ 20,909,772 $ 38,543,567
----------- -------------- -------------
----------- -------------- -------------
UNDISTRIBUTED NET INVESTMENT INCOME
End of the period................ $ 31,125 $ 152,304 $ 0
----------- -------------- -------------
----------- -------------- -------------
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares... 0 146,126 1,009,708
Issued in connection with the
reinvestment of
distributions.................. 506,550 0 241,472
Redeemed......................... (225,369) (1,751,368) (15,943)
----------- -------------- -------------
Net change....................... 281,181 (1,605,242) 1,235,237
----------- -------------- -------------
----------- -------------- -------------
</TABLE>
See accompanying notes to financial statements.
67
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Fixed Income Fund
--------------------------------------------
Six Months Nine Months
Ended Ended Year Ended
March 31, September 30, December 31,
1999 1998 1997
------------ -------------- -------------
<S> <C> <C> <C>
(Unaudited)
FROM OPERATIONS
Net investment income............ $ 11,214,965 $ 11,410,938 $ 8,695,684
Net realized gain (loss) on
investments and foreign
currency....................... 1,375,762 4,856,929 2,909,561
Change in unrealized appreciation
(depreciation) on investments
and foreign currency........... 5,857,601 (20,391,296) 1,883,711
------------ -------------- -------------
Increase (decrease) in net assets
from operations................ 18,448,328 (4,123,429) 13,488,956
------------ -------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income............ (16,709,531) 0 (8,861,805)
Net realized gain on
investments.................... (5,298,144) (1,288,514) (3,350,264)
------------ -------------- -------------
Total distributions............ (22,007,675) (1,288,514) (12,212,069)
------------ -------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of
shares......................... 21,172,701 89,088,980 86,055,071
Net asset value of shares issued
in connection with the
reinvestment of
distributions.................. 22,007,675 1,273,620 11,967,763
Cost of shares redeemed.......... (7,651,981) (9,670,135) (17,997,654)
------------ -------------- -------------
Increase (decrease) in net assets
derived from capital share
transactions................... 35,528,395 80,692,465 80,025,180
------------ -------------- -------------
Total increase (decrease) in
net assets................... 31,969,048 75,280,522 81,302,067
NET ASSETS
Beginning of period.............. 248,328,598 173,048,076 91,746,009
------------ -------------- -------------
End of period.................... $280,297,646 $ 248,328,598 $ 173,048,076
------------ -------------- -------------
------------ -------------- -------------
UNDISTRIBUTED NET INVESTMENT INCOME
End of period.................... $ 5,882,475 $ 11,377,041 $ (8,315)
------------ -------------- -------------
------------ -------------- -------------
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares... 1,727,296 6,829,377 6,599,478
Issued in connection with the
reinvestment of
distributions.................. 1,865,057 97,745 947,050
Redeemed......................... (619,579) (755,557) (1,401,398)
------------ -------------- -------------
Net change....................... 2,972,774 6,171,565 6,145,130
------------ -------------- -------------
------------ -------------- -------------
</TABLE>
See accompanying notes to financial statements.
68
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
High Yield Fixed Income Fund
--------------------------------------------------
Six Months Nine Months
Ended Ended Year Ended
March 31, September 30, December 31,
1999 1998 1997
------------ ----------------- ----------------
<S> <C> <C> <C>
(Unaudited)
FROM OPERATIONS
Net investment income............ $ 1,640,460 $ 2,619,892 $ 1,835,703
Net realized gain (loss) on
investments and foreign
currency....................... (4,076,358) 813,298 1,091,157
Change in unrealized appreciation
(depreciation) on investments
and foreign currency........... 5,862,358 (8,655,085) (1,050,300)
------------ ----------------- ----------------
Increase (decrease) in net assets
from operations................ 3,426,460 (5,221,895) 1,876,560
------------ ----------------- ----------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income............ (3,648,962) 0 (1,834,725)
Net realized gain on
investments.................... (816,575) (281,055) (811,668)
------------ ----------------- ----------------
Total distributions............ (4,465,537) (281,055) (2,646,393)
------------ ----------------- ----------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of
shares......................... 7,000 8,622,000 23,895,000
Net asset value of shares issued
in connection with the
reinvestment of
distributions.................. 4,155,972 255,838 2,646,426
Cost of shares redeemed.......... (13,592,930) (3,504,738) 0
------------ ----------------- ----------------
Increase (decrease) in net assets
derived from capital share
transactions................... (9,429,958) 5,373,100 26,541,426
------------ ----------------- ----------------
Total increase (decrease) in
net assets................... (10,469,035) (129,850) 25,771,593
NET ASSETS
Beginning of period.............. 28,742,154 28,872,004 3,100,411
------------ ----------------- ----------------
End of period.................... $ 18,273,119 $ 28,742,154 $ 28,872,004
------------ ----------------- ----------------
------------ ----------------- ----------------
UNDISTRIBUTED NET INVESTMENT INCOME
End of period.................... $ 613,953 $ 2,622,455 $ 704
------------ ----------------- ----------------
------------ ----------------- ----------------
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares... 863 853,119 2,304,814
Issued in connection with the
reinvestment of
distributions.................. 536,947 25,558 264,639
Redeemed......................... (1,744,920) (337,403) 0
------------ ----------------- ----------------
Net change....................... (1,207,110) 541,274 2,569,453
------------ ----------------- ----------------
------------ ----------------- ----------------
</TABLE>
See accompanying notes to financial statements.
69
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Intermediate Duration Fixed Income Fund
----------------------------------------
Six Months Ended Nine Months Ended
March 31, 1999 September 30, 1998*
----------------- --------------------
<S> <C> <C>
(Unaudited)
FROM OPERATIONS
Net investment income................. $ 379,573 $ 455,090
Net realized gain (loss) on
investments and foreign currency.... 8,319 (44,716)
Change in unrealized appreciation
(depreciation) on investments and
foreign currency.................... (63,476) (204,463)
----------------- --------------------
Increase (decrease) in net assets from
operations.......................... 324,416 205,911
----------------- --------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income................. (486,386) (357,494)
Net realized gain on investments...... 0 0
----------------- --------------------
Total distributions................. (486,386) (357,494)
----------------- --------------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares...... 3,601,888 11,888,529
Net asset value of shares issued in
connection with the reinvestment of
distributions....................... 486,386 357,494
Cost of shares redeemed............... 0 (1,040,783)
----------------- --------------------
Increase (decrease) in net assets
derived from capital share
transactions........................ 4,088,274 11,205,240
----------------- --------------------
Total increase (decrease) in net
assets............................ 3,926,304 11,053,657
NET ASSETS
Beginning of period................... 11,053,657 0
----------------- --------------------
End of period......................... $ 14,979,961 $ 11,053,657
----------------- --------------------
----------------- --------------------
UNDISTRIBUTED NET INVESTMENT INCOME
End of period......................... $ (9,217) $ 97,596
----------------- --------------------
----------------- --------------------
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares........ 368,852 1,188,441
Issued in connection with the
reinvestment of distributions....... 50,018 35,799
Redeemed.............................. 0 (103,785)
----------------- --------------------
Net change............................ 418,870 1,120,455
----------------- --------------------
----------------- --------------------
</TABLE>
* Commencement of operations on January 28, 1998.
See accompanying notes to financial statements.
70
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Investment Grade Fixed Income Fund
--------------------------------------------
Six Months Nine Months
Ended Ended Year Ended
March 31, September 30, December 31,
1999 1998 1997
------------ -------------- -------------
<S> <C> <C> <C>
(Unaudited)
FROM OPERATIONS
Net investment income............ $ 4,634,156 $ 5,159,444 $ 4,262,268
Net realized gain (loss) on
investments and foreign
currency....................... 567,467 1,166,768 1,023,968
Change in unrealized appreciation
(depreciation) on investments
and foreign currency........... 2,954,895 (6,968,292) 704,886
------------ -------------- -------------
Increase (decrease) in net assets
from operations................ 8,156,518 (642,080) 5,991,122
------------ -------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income............ (4,813,319) (5,325,638) (4,113,289)
Net realized gain on
investments.................... (1,310,698) (164,584) (884,327)
------------ -------------- -------------
Total distributions............ (6,124,017) (5,490,222) (4,997,616)
------------ -------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of
shares......................... 10,731,869 38,267,503 28,180,818
Net asset value of shares issued
in connection with the
reinvestment of
distributions.................. 4,870,965 4,469,734 3,906,983
Cost of shares redeemed.......... (2,135,418) (484,895) (1,869,109)
------------ -------------- -------------
Increase (decrease) in net assets
derived from capital share
transactions................... 13,467,416 42,252,342 30,218,692
------------ -------------- -------------
Total increase (decrease) in
net assets................... 15,499,917 36,120,040 31,212,198
NET ASSETS
Beginning of period.............. 119,083,988 82,963,948 51,751,750
------------ -------------- -------------
End of period.................... $134,583,905 $ 119,083,988 $ 82,963,948
------------ -------------- -------------
------------ -------------- -------------
UNDISTRIBUTED NET INVESTMENT INCOME
End of period.................... $ (21,094) $ 158,069 $ 166,580
------------ -------------- -------------
------------ -------------- -------------
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares... 946,308 3,216,464 2,322,895
Issued in connection with the
reinvestment of
distributions.................. 427,826 375,920 327,954
Redeemed......................... (186,598) (41,234) (154,352)
------------ -------------- -------------
Net change....................... 1,187,536 3,551,150 2,496,497
------------ -------------- -------------
------------ -------------- -------------
</TABLE>
See accompanying notes to financial statements.
71
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
72
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
California Tax-Free
Income Fund
------------------------
1999*
(Unaudited) 1998**
------------ ---------
<S> <C> <C>
Net asset value,
beginning of period.... $ 10.59 $ 10.41
------------ ---------
Income from investment
operations --
Net investment income
(loss)............... 0.23 0.35
Net realized and
unrealized gain
(loss) on
investments.......... (0.07) 0.19
------------ ---------
Total from investment
operations......... 0.16 0.54
------------ ---------
Less distributions --
Dividends from net
investment income.... (0.24) (0.36)
Distributions from net
realized capital
gains................ 0.00 0.00
------------ ---------
Total
distributions...... (0.24) (0.36)
------------ ---------
Net asset value, end of
period................. $ 10.51 $ 10.59
------------ ---------
------------ ---------
Total return (%)(a)(b)... 1.5 5.3
Net assets, end of period
(000).................. $ 20,757 $ 19,618
Ratio of operating
expenses to average net
assets (%)(c)(d)....... 0.65 0.65
Ratio of net investment
income to average net
assets (%)(c).......... 4.48 4.55
Portfolio turnover
(%)(a)................. 6 12
Without giving effect to
the voluntary expense
limitations described
in Note 3 to the
Financial Statements:
Ratio of expenses to
average net assets
would have been
(%)(c)................. 1.13 1.33
Net investment income
per share would have
been................. $ 0.21 $ 0.30
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** For the nine months ended September 30, 1998.
*** Commencement of operations on June 1, 1995.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
73
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
<TABLE>
<CAPTION>
California Tax-Free Income Fund
--------------------------------
For the Year Ended December 31,
--------------------------------
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
(loss)............... 0.47 0.46 0.26
Net realized and
unrealized gain
(loss) on
investments.......... 0.25 (0.04) 0.23
--------- --------- --------
Total from investment
operations......... 0.72 0.42 0.49
--------- --------- --------
Less distributions --
Dividends from net
investment income.... (0.47) (0.45) (0.26)
Distributions from net
realized capital
gains................ (0.03) (0.01) 0.00
--------- --------- --------
Total
distributions...... (0.50) (0.46) (0.26)
--------- --------- --------
Net asset value, end of
period................. $ 10.41 $ 10.19 $ 10.23
--------- --------- --------
--------- --------- --------
Total return (%)(a)(b)... 7.3 4.1 4.9
Net assets, end of period
(000).................. $ 16,822 $ 13,460 $ 7,880
Ratio of operating
expenses to average net
assets (%)(c)(d)....... 0.65 0.65 0.65
Ratio of net investment
income to average net
assets (%)(c).......... 4.62 4.58 5.30
Portfolio turnover
(%)(a)................. 24 18 18
Without giving effect to
the voluntary expense
limitations described
in Note 3 to the
Financial Statements:
Ratio of expenses to
average net assets
would have been
(%)(c)................. 1.41 1.26 1.62
Net investment income
per share would have
been................. $ 0.39 $ 0.40 $ 0.22
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** For the nine months ended September 30, 1998.
*** Commencement of operations on June 1, 1995.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
74
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Core Fixed Income Fund
-------------------------------------------------
For the Year ended
December 31,
1999* --------------------
(Unaudited) 1998** 1997 1996***
----------- -------- -------- -------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 11.49 $ 10.66 $ 10.14 $ 10.00
----------- -------- -------- -------
Income from investment operations
--
Net investment income (loss)..... 0.29 0.50 0.39 0.40
Net realized and unrealized gain
(loss) on investments.......... (0.33) 0.33 0.55 0.13
----------- -------- -------- -------
Total from investment
operations................... (0.04) 0.83 0.94 0.53
----------- -------- -------- -------
Less distributions --
Dividends from net investment
income......................... (0.64) 0.00 (0.39) (0.39)
Distributions from net realized
capital gains.................. (0.15) (0.00)(e) (0.03) 0.00
----------- -------- -------- -------
Total distributions............ (0.79) (0.00) (0.42) (0.39)
----------- -------- -------- -------
Net asset value, end of period..... $ 10.66 $ 11.49 $ 10.66 $ 10.14
----------- -------- -------- -------
----------- -------- -------- -------
Total return (%)(a)(b)............. (0.3) 7.8 9.2 5.3
Net assets, end of period (000).... $ 21,569 $ 19,341 $ 16,110 $ 6,271
Ratio of operating expenses to
average net assets (%)(c)(d)..... 0.65 0.65 0.65 0.65
Ratio of net investment income to
average net assets (%)(c)........ 6.07 6.08 6.34 6.21
Portfolio turnover (%)(a).......... 17 45 59 34
Without giving effect to the
voluntary expense limitations
described in Note 3 to the
Financial Statements:
Ratio of expenses to average net
assets would have been
(%)(c)......................... 1.15 1.27 1.80 1.46
Net investment income per share
would have been................ $ 0.27 $ 0.45 $ 0.32 $ 0.35
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** For the nine months ended September 30, 1998.
*** Commencement of operations on April 24, 1996.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
(e) Amount is less than $0.01 per share.
75
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
76
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Core Growth Fund
------------------------
1999*
(Unaudited) 1998**
------------ ---------
<S> <C> <C>
Net asset value,
beginning of period.... $ 13.59 $ 12.26
------------ ---------
Income from investment
operations --
Net investment income
(loss)............... 0.02 0.10
Net realized and
unrealized gain
(loss) on
investments.......... 3.49 1.23
------------ ---------
Total from investment
operations......... 3.51 1.33
------------ ---------
Less distributions --
Dividends from net
investment income.... (0.10) 0.00
Distributions from net
realized capital
gains................ (3.94) 0.00
------------ ---------
Total
distributions.... (4.04) 0.00
------------ ---------
Net asset value, end of
period................. $ 13.06 $ 13.59
------------ ---------
------------ ---------
Total return (%)(a)(b)... 27.7 10.9
Net assets, end of period
(000).................. $ 23,765 $ 20,910
Ratio of operating
expenses to average net
assets (%)(c)(d)....... 0.65 0.65
Ratio of net investment
income to average net
assets (%)(c).......... 0.28 0.74
Portfolio turnover
(%)(a)................. 84 96
Without giving effect to
the voluntary expense
limitations described
in Note 3 to the
Financial Statements:
Ratio of expenses to
average net assets
would have been
(%)(c)............. 0.95 1.03
Net investment income
per share would
have been.......... $ 0.00 $ 0.05
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** For the nine months ended September 30, 1998.
*** Commencement of operations on October 1, 1995.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
77
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
<TABLE>
<CAPTION>
Core Growth Fund
--------------------------------
For the Year Ended December 31,
--------------------------------
1997 1996 1995***
--------- --------- --------
<S> <C> <C> <C>
Net asset value,
beginning of period.... $ 11.48 $ 10.02 $ 10.00
--------- --------- --------
Income from investment
operations --
Net investment income
(loss)............... 0.10 0.10 0.02
Net realized and
unrealized gain
(loss) on
investments.......... 1.68 1.47 0.02
--------- --------- --------
Total from investment
operations......... 1.78 1.57 0.04
--------- --------- --------
Less distributions --
Dividends from net
investment income.... (0.10) (0.11) (0.02)
Distributions from net
realized capital
gains................ (0.90) 0.00 0.00
--------- --------- --------
Total
distributions.... (1.00) (0.11) (0.02)
--------- --------- --------
Net asset value, end of
period................. $ 12.26 $ 11.48 $ 10.02
--------- --------- --------
--------- --------- --------
Total return (%)(a)(b)... 15.7 15.6 0.4
Net assets, end of period
(000).................. $ 38,544 $ 21,906 $ 7,609
Ratio of operating
expenses to average net
assets (%)(c)(d)....... 0.65 0.65 0.65
Ratio of net investment
income to average net
assets (%)(c).......... 0.87 1.10 1.36
Portfolio turnover
(%)(a)................. 109 97 22
Without giving effect to
the voluntary expense
limitations described
in Note 3 to the
Financial Statements:
Ratio of expenses to
average net assets
would have been
(%)(c)............. 0.89 0.89 1.43
Net investment income
per share would
have been.......... $ 0.07 $ 0.08 $ 0.01
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** For the nine months ended September 30, 1998.
*** Commencement of operations on October 1, 1995.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
78
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Fixed Income Fund
-------------------------
1999*
(Unaudited) 1998**
------------ ----------
<S> <C> <C>
Net asset value,
beginning of period.... $ 12.47 $ 12.59
------------ ----------
Income from investment
operations --
Net investment income
(loss)............... 0.51 0.57
Net realized and
unrealized gain
(loss) on
investments.......... 0.35 (0.62)
------------ ----------
Total from investment
operations......... 0.86 (0.05)
------------ ----------
Less distributions --
Dividends from net
investment income.... (0.82) 0.00
Distributions from net
realized capital
gains................ (0.26) (0.07)
------------ ----------
Total
distributions...... (1.08) (0.07)
------------ ----------
Net asset value, end of
period................. $ 12.25 $ 12.47
------------ ----------
------------ ----------
Total return (%)(a)(b)... 7.2 (0.4)
Net assets, end of period
(000).................. $ 280,298 $ 248,329
Ratio of operating
expenses to average net
assets (%)(c)(d)....... 0.64 0.65
Ratio of net investment
income to average net
assets (%)(c).......... 8.52 7.37
Portfolio turnover
(%)(a)................. 14 31
Without giving effect to
the voluntary expense
limitations described
in Note 3 to the
Financial Statements:
Ratio of expenses to
average net assets
would have been
(%)(c)............. 0.64 0.68
Net investment income
per share would
have been.......... $ 0.51 $ 0.57
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** For the nine months ended September 30, 1998.
*** Commencement of operations on January 17, 1995.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
79
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
<TABLE>
<CAPTION>
Fixed Income Fund
----------------------------------
For the Year Ended December 31,
----------------------------------
1997 1996 1995***
---------- --------- ---------
<S> <C> <C> <C>
Net asset value,
beginning of period.... $ 12.08 $ 12.08 $ 10.00
---------- --------- ---------
Income from investment
operations --
Net investment income
(loss)............... 0.72 0.91 0.53
Net realized and
unrealized gain
(loss) on
investments.......... 0.89 0.27 2.21
---------- --------- ---------
Total from investment
operations......... 1.61 1.18 2.74
---------- --------- ---------
Less distributions --
Dividends from net
investment income.... (0.75) (0.90) (0.52)
Distributions from net
realized capital
gains................ (0.35) (0.28) (0.14)
---------- --------- ---------
Total
distributions...... (1.10) (1.18) (0.66)
---------- --------- ---------
Net asset value, end of
period................. $ 12.59 $ 12.08 $ 12.08
---------- --------- ---------
---------- --------- ---------
Total return (%)(a)(b)... 13.4 9.8 27.4
Net assets, end of period
(000).................. $ 173,048 $ 91,746 $ 58,332
Ratio of operating
expenses to average net
assets (%)(c)(d)....... 0.65 0.62 0.75
Ratio of net investment
income to average net
assets (%)(c).......... 7.56 7.97 8.15
Portfolio turnover
(%)(a)................. 41 90 76
Without giving effect to
the voluntary expense
limitations described
in Note 3 to the
Financial Statements:
Ratio of expenses to
average net assets
would have been
(%)(c)............. 0.70 0.62 0.83
Net investment income
per share would
have been.......... $ 0.72 $ 0.91 $ 0.52
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** For the nine months ended September 30, 1998.
*** Commencement of operations on January 17, 1995.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
80
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
High Yield Fixed Income Fund
-----------------------------------------------
For the Year Ended
December 31,
1999* --------------------
(Unaudited) 1998** 1997 1996***
------------ --------- --------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period...................... $ 8.41 $ 10.04 $ 10.16 $ 10.00
------------ --------- --------- --------
Income from investment
operations --
Net investment income
(loss).................... 0.58 0.77 0.70 0.56
Net realized and unrealized
gain (loss) on
investments............... 0.59 (2.31) 0.20 0.21
------------ --------- --------- --------
Total from investment
operations.............. 1.17 (1.54) 0.90 0.77
------------ --------- --------- --------
Less distributions --
Dividends from net
investment income......... (1.07) 0.00 (0.71) (0.56)
Distributions from net
realized capital gains.... (0.24) (0.09) (0.31) (0.05)
------------ --------- --------- --------
Total distributions....... (1.31) (0.09) (1.02) (0.61)
------------ --------- --------- --------
Net asset value, end of
period...................... $ 8.27 $ 8.41 $ 10.04 $ 10.16
------------ --------- --------- --------
------------ --------- --------- --------
Total return (%)(a)(b)........ 14.9 (15.5) 8.8 7.7
Net assets, end of period
(000)....................... $ 18,273 $ 28,742 $ 28,872 $ 3,100
Ratio of operating expenses to
average net assets
(%)(c)(d)................... 0.75 0.75 0.75 0.75
Ratio of net investment income
to average net assets
(%)(c)...................... 12.79 10.69 8.82 9.42
Portfolio turnover (%)(a)..... 15 39 94 9
Without giving effect to the
voluntary expense
limitations described in
Note 3 to the Financial
Statements:
Ratio of expenses to
average net assets would
have been (%)(c)........ 1.15 1.12 1.17 2.73
Net investment income per
share would have been... $ 0.56 $ 0.74 $ 0.67 $ 0.44
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** For the nine months ended September 30, 1998.
*** Commencement of operations on June 5, 1996.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
81
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Intermediate Duration
Fixed Income Fund
------------------------
1999*
(Unaudited) 1998**
------------ ---------
<S> <C> <C>
Net asset value, beginning of period.... $ 9.87 $ 10.00
------------ ---------
Income from investment operations --
Net investment income (loss).......... 0.30 0.41
Net realized and unrealized gain
(loss) on investments............... (0.04) (0.22)
------------ ---------
Total from investment operations.... 0.26 0.19
------------ ---------
Less distributions --
Dividends from net investment
income.............................. (0.40) (0.32)
Distributions from net realized
capital gains....................... 0.00 0.00
------------ ---------
Total distributions................. (0.40) (0.32)
------------ ---------
Net asset value, end of period.......... $ 9.73 $ 9.87
------------ ---------
------------ ---------
Total return (%)(a)(b).................. 2.7 1.9
Net assets, end of period (000)......... $ 14,980 $ 11,054
Ratio of operating expenses to average
net assets (%)(c)(d).................. 0.55 0.55
Ratio of net investment income to
average net assets (%)(c)............. 6.26 6.05
Portfolio turnover (%)(a)............... 7 74
Without giving effect to the voluntary
expense limitations described in Note
3 to the Financial Statements:
Ratio of expenses to average net
assets would have been (%)(c)..... 1.16 1.33
Net investment income per share
would have been................... $ 0.27 $ 0.35
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** Commencement of operations on January 28, 1998 through September 30, 1998.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
82
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Investment Grade
Fixed Income Fund
-------------------------
1999*
(Unaudited) 1998**
------------ ----------
<S> <C> <C>
Net asset value,
beginning of period.... $ 11.42 $ 12.06
------------ ----------
Income from investment
operations --
Net investment income
(loss)............... 0.41 0.61
Net realized and
unrealized gain
(loss) on
investments.......... 0.30 (0.60)
------------ ----------
Total from investment
operations......... 0.71 0.01
------------ ----------
Less distributions --
Dividends from net
investment income.... (0.43) (0.63)
Distributions from net
realized capital
gains................ (0.12) (0.02)
------------ ----------
Total
distributions.... (0.55) (0.65)
------------ ----------
Net asset value, end of
period................. $ 11.58 $ 11.42
------------ ----------
------------ ----------
Total return (%)(a)(b)... 6.4 (0.0)
Net assets, end of period
(000).................. $ 134,584 $ 119,084
Ratio of operating
expenses to average net
assets (%)(c)(d)....... 0.55 0.55
Ratio of net investment
income to average net
assets (%)(c).......... 7.26 6.85
Portfolio turnover
(%)(a)................. 9 31
Without giving effect to
the voluntary expense
limitations described
in Note 3 to the
Financial Statements:
Ratio of expenses to
average net assets
would have been
(%)(c)............. 0.59 0.65
Net investment income
per share would
have been.......... $ 0.41 $ 0.60
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** For the nine months ended September 30, 1998.
*** Commencement of operations on July 1, 1994.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
83
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
<TABLE>
<CAPTION>
Investment Grade Fixed Income Fund
--------------------------------------------
For the Year Ended December 31,
--------------------------------------------
1997 1996 1995 1994***
--------- --------- --------- --------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 11.81 $ 11.56 $ 9.57 $ 10.00
--------- --------- --------- --------
Income from investment
operations --
Net investment income
(loss)............... 0.83 0.80 0.75 0.41
Net realized and
unrealized gain
(loss) on
investments.......... 0.37 0.40 2.05 (0.43)
--------- --------- --------- --------
Total from investment
operations......... 1.20 1.20 2.80 (0.02)
--------- --------- --------- --------
Less distributions --
Dividends from net
investment income.... (0.81) (0.79) (0.76) (0.41)
Distributions from net
realized capital
gains................ (0.14) (0.16) (0.05) 0.00
--------- --------- --------- --------
Total
distributions.... (0.95) (0.95) (0.81) (0.41)
--------- --------- --------- --------
Net asset value, end of
period................. $ 12.06 $ 11.81 $ 11.56 $ 9.57
--------- --------- --------- --------
--------- --------- --------- --------
Total return (%)(a)(b)... 10.6 10.9 30.3 (0.3)
Net assets, end of period
(000).................. $ 82,964 $ 51,752 $ 21,816 $ 4,649
Ratio of operating
expenses to average net
assets (%)(c)(d)....... 0.55 0.55 0.55 0.55
Ratio of net investment
income to average net
assets (%)(c).......... 6.97 7.27 7.61 8.18
Portfolio turnover
(%)(a)................. 58 74 22 112
Without giving effect to
the voluntary expense
limitations described
in Note 3 to the
Financial Statements:
Ratio of expenses to
average net assets
would have been
(%)(c)............. 0.69 0.70 0.94 1.55
Net investment income
per share would
have been.......... $ 0.81 $ 0.78 $ 0.71 $ 0.36
</TABLE>
- ---------------
* For the six months ended March 31, 1999.
** For the nine months ended September 30, 1998.
*** Commencement of operations on July 1, 1994.
(a) Periods less than one year are not annualized.
(b) Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.
(c) Annualized for periods less than one year.
(d) The adviser has agreed to reimburse a portion of the Fund's expenses during
the period. Without this reimbursement the Fund's ratio of operating
expenses would have been higher.
84
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999 (UNAUDITED)
1. Loomis Sayles Investment Trust (the "Trust") consists of seven 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 Trust consists of the following Funds:
Loomis Sayles California Tax-Free Income Fund
Loomis Sayles Core Fixed Income Fund
Loomis Sayles Core Growth Fund
Loomis Sayles Fixed Income Fund
Loomis Sayles High Yield Fixed Income Fund
Loomis Sayles Intermediate Duration Fixed Income Fund
Loomis Sayles Investment Grade Fixed Income Fund
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. Effective September 30, 1998, the
Board of Trustees approved a change in the fiscal year end of the Funds to
September 30. Certain amounts in the Statements of Changes in Net Assets for
prior periods have been reclassified to conform to current period presentations.
The following summarizes the significant accounting policies of the Loomis
Sayles Investment Trust Funds:
A. SECURITY VALUATION -- Long-term debt securities for which quotations are
readily available are valued by a pricing service, as approved by the Board of
Trustees, which generally uses the most recent bid prices in the principal
market in which such securities are normally traded. Municipal debt securities
are valued by a pricing service, as approved by the Board of Trustees, which
generally uses a computerized matrix system or dealer supplied quotations that
consider market transactions for comparable securities. Equity securities for
85
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARCH 31, 1999 (UNAUDITED)
which quotations are readily available are valued at their last sale price on
the exchange where primarily traded or, if there is no reported sale during the
day, at the closing bid price. Short-term securities with a remaining maturity
of 60 days or less are valued at amortized cost, which approximates market
value. Other securities for which quotations are not readily available
(including restricted securities, if any) are valued primarily using dealer
supplied quotations or at their fair values as determined in good faith under
the general supervision of the Board of Trustees
B. REPURCHASE AGREEMENTS -- The Funds may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Funds take
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Funds to resell, the obligation at an agreed-upon
price and time. This arrangement results in a fixed rate of return that is not
subject to market fluctuations during the Funds' holding period. The Funds,
through their custodian, receive delivery of the underlying securities
collateralizing repurchase agreements. It is the Funds' policy that the market
value of the collateral be at least equal to 102% of the repurchase price. These
securities are marked-to-market daily. Loomis Sayles is responsible for
determining that the value of the collateral is at all times at least equal to
102% of the repurchase price. In connection with transactions in repurchase
agreements, if the seller defaults and the value of the collateral declines or
if the seller enters into insolvency proceedings, realization of the collateral
by the Funds may be delayed or limited.
C. FOREIGN CURRENCY TRANSLATION AND FOREIGN INVESTMENTS -- The books and
records of each of the Funds (including those Funds that invest in foreign
securities) are maintained in U.S. dollars. The value of securities, currencies
and other assets and liabilities denominated in currencies other than U.S.
dollars is translated into U.S. dollars based upon foreign exchange rates
prevailing at the end of the period. Purchases and sales of investment
securities are translated at contractual currency exchange rates established at
the time of the trade. Income and expenses are translated at prevailing exchange
rates on the respective dates of such transactions.
The results of operations resulting from changes in foreign exchange rates on
investments are not isolated from fluctuations arising from changes in market
prices of securities held. All such fluctuations are included with net realized
and unrealized gain or loss 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
86
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARCH 31, 1999 (UNAUDITED)
securities and holdings of foreign currencies, foreign currency gains and losses
between trade dates and settlement dates on investment securities transactions,
sales and maturities of forward foreign currency exchange contracts, and the
difference between the amounts of daily interest accruals on the books of the
Funds and the amounts actually received resulting from changes in exchange rates
on the payable date.
Certain funds use foreign currency exchange contracts to facilitate transactions
in foreign-denominated securities. Losses may arise from changes in the value of
the foreign currency or if the counterparties do not perform under the
contracts' terms. The U.S. dollar value of foreign currency is determined using
contractual currency exchange rates established at the time of each trade. The
cost of the foreign currency exchange contracts is included in the cost basis of
the associated investment.
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.
D. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- Each Fund that may invest in
foreign securities may enter into forward foreign currency exchange contracts to
protect securities against changes in future foreign exchange rates. A forward
foreign currency exchange contract is an agreement between two parties to buy or
sell currency at a set price on a future date.
The market value of the contract will fluctuate with changes in currency
exchange rates. The contract is marked-to-market daily using the forward
currency exchange rate and the change in market value is recorded as unrealized
appreciation (depreciation) on foreign currency translations in the Funds'
Statements of Assets and Liabilities. Realized gain or loss is recognized when
the contract is closed equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed and recorded
as realized gain (loss) on foreign currency transactions in the Funds'
Statements of Operations.
Risks may arise upon entering into forward foreign currency exchange contracts
from the potential inability of the counterparties to meet the terms of their
87
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARCH 31, 1999 (UNAUDITED)
contracts and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar. At March 31, 1999, there were no open forward
foreign currency exchange contracts.
E. SECURITY TRANSACTIONS, RELATED INVESTMENT INCOME AND EXPENSES -- Security
transactions are accounted for on the trade date (the date the buy or sell is
executed). Dividend income is recorded on the ex-dividend date and interest
income is recorded on the accrual basis. Interest income is increased by the
accretion of discount. Discounts on zero coupon bonds, original issues, step
bonds and payment in kind bonds are accreted according to the effective interest
method. Interest income on the California Tax-Free Income Fund is decreased by
the amortization of premium. Premiums are amortized using the yield to maturity
method. In determining net gain or loss on securities sold, the cost of
securities has been determined on the identified cost basis.
Most expenses of the Trust can be directly attributed to a particular fund.
Expenses which cannot be directly attributed are apportioned among the Funds
based upon relative net assets.
F. FEDERAL INCOME TAXES -- Each Fund is a separate entity for federal income
tax purposes. Each Fund intends to meet the requirements of the Internal Revenue
Code applicable to regulated investment companies, and to distribute to its
shareholders all of its net investment income and any net realized capital
gains. Accordingly, no provision for federal income tax or excise tax has been
made.
G. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The California Tax-Free
Income, the Intermediate Duration Fixed 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, if any, are declared and paid on an annual basis by all of the
Funds. Income and capital gain distributions are determined in accordance with
Federal income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in reclassifications
to the Fund's capital accounts to reflect income and gains available for
distribution, are primarily due to differing book and tax treatments for foreign
currency transactions, deferred losses due to wash sales and excise tax
regulations. Some of these classifications may include temporary book and tax
basis differences that will reverse in subsequent periods.
88
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARCH 31, 1999 (UNAUDITED)
H. ORGANIZATION EXPENSE -- In 1996, costs approximating $11,970 were incurred
in connection with the initial registration and 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 six months ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
PURCHASES
---------------------------------
U.S. GOVERNMENT OTHER
---------------- --------------
<S> <C> <C>
California Tax-Free Income Fund......... $ 0 $ 1,308,994
Core Fixed Income Fund.................. 5,390,479 498,322
Core Growth Fund........................ 0 18,806,339
Fixed Income Fund....................... 5,804,898 53,202,574
High Yield Fixed Income Fund............ 0 3,564,746
Intermediate Duration Fixed Income
Fund.................................. 2,985,057 1,597,014
Investment Grade Fixed Income Fund...... 1,010,094 21,669,567
</TABLE>
<TABLE>
<CAPTION>
SALES
--------------------------------
U.S. GOVERNMENT OTHER
---------------- -------------
<S> <C> <C>
California Tax-Free Income Fund......... $ 0 $ 1,105,754
Core Fixed Income Fund.................. 1,601,648 1,643,560
Core Growth Fund........................ 484,333 22,204,675
Fixed Income Fund....................... 16,827,945 19,430,674
High Yield Fixed Income Fund............ 0 16,340,752
Intermediate Duration Fixed Income
Fund.................................. 599,195 187,282
Investment Grade Fixed Income Fund...... 4,828 10,918,518
</TABLE>
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES -- For the six months
ended March 31, 1999, 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
NVEST, 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 six months ended March 31, 1999
provided for fees at the following annual percentage rate of each Fund's average
daily net assets indicated below. Loomis Sayles voluntarily agreed, for an
indefinite period, to reduce its advisory fees and/or bear other
89
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARCH 31, 1999 (UNAUDITED)
expenses, to the extent necessary to limit the total operating expenses of the
Funds to the following percentage rate of the relevant Fund's average annual net
assets:
<TABLE>
<CAPTION>
MANAGEMENT MAXIMUM OPERATING
FUND FEES EXPENSE RATIO
- ---------------------------------------- ---------- -----------------
<S> <C> <C>
California Tax-Free Income Fund......... 0.50% 0.65%
Core Fixed Income Fund.................. 0.50% 0.65%
Core Growth Fund........................ 0.50% 0.65%
Fixed Income Fund....................... 0.50% 0.65%
High Yield Fixed Income Fund............ 0.60% 0.75%
Intermediate Duration Fixed Income
Fund.................................. 0.40% 0.55%
Investment Grade Fixed Income Fund...... 0.40% 0.55%
</TABLE>
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. 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 RISK -- 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 the 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
90
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
NOTES TO FINANCIAL STATEMENTS continued
MARCH 31, 1999 (UNAUDITED)
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. IN-KIND TRANSACTIONS -- During the six months ended March 31, 1999, the High
Yield Fixed Income Fund had realized losses of $871,366 on securities associated
with an in-kind redemption on January 26, 1999.
91
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
- ------------------------------------------------
The Loomis Sayles Investment Trust shareholders voted on the following proposal
at a special meeting held on April 6, 1999.
<TABLE>
<CAPTION>
TO ELECT THE FOLLOWING TRUSTEES: VOTED FOR WITHHELD
- ---------------------------------------- -------------- -----------
<S> <C> <C>
Charles J. Finlayson.................... 23,053,640.741 0.000
Earl W. Foell........................... 22,204,030.351 849,610.390
Mark W. Holland......................... 23,053,640.741 0.000
Timothy J. Hunt......................... 22,317,464.151 736,176.590
</TABLE>
92
<PAGE>
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93
<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
Philip R. Murray
Quentin P. Faulkner
Nicholas H. Palmerino
Kathleen C. Gaffney
SECRETARY
Jeffrey L. Meade
Sheila M. Barry
Robert K. Payne
Frederick E. Sweeney, Jr.
ASSISTANT SECRETARY
Anthony J. Wilkins
Bonnie S. Thompson
<PAGE>
For Information about:
- - Establishing an account
- - Account procedures and status
- - Exchanges
- - Shareholder services
Phone 888-226-9699 (Toll Free)
INVESTMENT ADVISER
Loomis, Sayles & Company, L.P. - One Financial Center - Boston, MA 02111
TRANSFER AND DIVIDEND PAYING AGENT AND CUSTODIAN OF ASSETS
State Street Bank and Trust Company - Boston, MA 02102
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP - One Post Office Square - 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.
