<PAGE>
[LOGO]
LOOMIS SAYLES INVESTMENT TRUST
Loomis Sayles California Tax-Free Income Fund
Loomis Sayles Core Fixed Income Fund
Loomis Sayles Fixed Income Fund
Loomis Sayles High Yield Fixed Income Fund
Loomis Sayles Intermediate Duration Fixed Income Fund
Loomis Sayles Investment Grade Fixed Income Fund
Loomis Sayles Provident Fund
Loomis Sayles Small Company Growth Fund
Loomis Sayles Small Company Value Fund
SEMI-ANNUAL REPORT
MARCH 31, 2000
<PAGE>
TABLE OF CONTENTS
Letter from the President 1
Fund and Manager Reviews 3
Portfolio of Investments 21
Statements of Assets and Liabilities 73
Statements of Operations 75
Statements of Changes in Net Assets 77
Financial Highlights 87
Notes to Financial Statements 103
<PAGE>
LETTER FROM THE PRESIDENT
[PHOTO]
DANIEL J. FUSS
PRESIDENT AND
PORTFOLIO MANAGER
DEAR SHAREHOLDERS,
The last six months ended March 31, 2000 showed continued strength in the U.S.
stock market and changing conditions in the U.S. bond market. The broad bond
market finished 1999 on a disappointing note, with rising interest rates and
negative returns for most sectors. While short-term rates continued to climb
into 2000, the higher-quality, longer-term sectors rebounded somewhat during the
first three months of 2000, led in large part by a bounce-back in the U.S.
Treasury sector.
At Loomis Sayles, our domestic bond funds successfully persevered through the
challenging bond market climate of the past six months. Spreads remained wide
throughout the period, which presented us with excellent long-term buying
opportunities. Because our expertise is in researching and selecting attractive
bonds, we were very comfortable with this environment.
The worst may be over for the bond market, and we're probably already off the
bottom. But, because short-term rates may continue to rise for a while, barring
a stock market drop, the market shouldn't get away from us on the upside. It's a
good time to be gradually buying discount, reasonable credits with fairly long
maturities. It's also important to get extra value by emphasizing
non-market-related factors. We have to remain cautious with corporate bonds,
though, because it's a very competitive market. All in all, it's a
better-than-average time to be in the market, particularly if focused on long,
discount, non-Treasury securities.
In the equity arena, growth stocks across all capitalization ranges remained on
a strong upward course, led by the powerful, high-flying technology sector. A
couple of rallies among value stocks were short-lived, and the growth-stock
sector emerged as the unrivaled style leader for the period.
As we look ahead, the levels of debt in the economies of the major countries
remain a valid concern. As short-term interest rates move up, this may serve as
a depressant on the financial markets and a slowing mechanism for the economies.
Nevertheless, this one factor alone doesn't seem to be enough to put an end to
the economic expansion. In fact, unless the central banks go overboard, there
really is no visible factor threatening to clobber the economies.
<PAGE>
There are many factors, though, that appear to be dampeners of economic growth,
particularly in North America: relatively full employment, rising short-term
interest rates and the resulting slowing of private-sector borrowing, and some
deterioration in consumer sentiment. Put together, these factors could and
should slow the level of economic expansion to something more in line with
normal growth.
The magnitude of stock-market leverage also is an important and growing concern
in the U.S., Europe and Japan. The Federal Reserve Board has said it won't raise
margin requirements, but a market that trends sharply downwards could feed on
itself. Those investing in volatile instruments with borrowed money eventually
will have to face up to it, and this really could put a damper on the stock
market and the economy. Stock market valuations in the U.S., and to a lesser
degree in Europe, also remain a concern given the extraordinary returns in the
past five years. These are huge markets, and a return to more normalized
performance could be disappointing in the future.
If this does occur, though, I suspect it will be a gradual process.
Sincerely,
/s/ Daniel J. Fuss
Daniel J. Fuss
President
Loomis Sayles Investment Trust
LOOMIS SAYLES INVESTMENT TRUST 2
<PAGE>
FUND AND MANAGER REVIEW
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-month period ended March 31, 2000, the Fund had a total return of 1.57%, as
compared to the Fund's benchmark, the Lehman Brothers 5 Year Municipal Bond
Index, total return of 1.21%. For the same period, the average California
intermediate municipal debt fund, as measured by Lipper Inc., had a total return
of 1.80%.
Yields dropped sharply in February and March, especially on longer-term bonds.
This was caused by a combination of the U.S. Treasury buy-back program, a
slowdown of mutual fund redemptions, and a fairly light municipal supply.
Additionally, several large insurance companies are purchasing tax-exempt bonds,
so we believe that we expect to earn at least our average coupon (5 1/2%) for
the year. The average maturity of the fund now stands at 5.64 years.
The overall quality of the Fund remains high at Aa1. We have reduced our
pre/reinsured sector modestly and will look for further opportunities to
increase yields by reducing this sector in the second quarter.
ROBERT K. PAYNE IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES CALIFORNIA
TAX-FREE INCOME FUND.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
------------------------
Since
6 Months 1 Year 3 Years Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND 1.57 0.60 4.90 4.91
Lipper California Intermediate Municipal Debt Funds Index(b) 1.82 0.45 4.76 4.81
Lehman Brothers 5 Year Municipal Bond Index(c) 1.21 0.90 4.72 4.77
</TABLE>
[GRAPH]
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Loomis Sayles Lipper California Lehman Brothers
California Intermediate 5 Year
Tax-Free Municipal Municipal
Income Fund Debt Funds Index Bond Index
<S> <C> <C> <C>
6/1/95 $10,000 $10,000 $10,000
6/30/95 $9,930 $9,921 $10,017
7/31/95 $10,048 $10,027 $10,139
8/31/95 $10,136 $10,136 $10,231
9/30/95 $10,189 $10,195 $10,257
10/31/95 $10,313 $10,314 $10,320
11/30/95 $10,438 $10,432 $10,414
12/31/95 $10,493 $10,494 $10,468
1/31/96 $10,595 $10,594 $10,572
2/29/96 $10,575 $10,557 $10,543
3/31/96 $10,466 $10,430 $10,469
4/30/96 $10,435 $10,422 $10,468
5/31/96 $10,419 $10,418 $10,464
6/30/96 $10,516 $10,488 $10,525
7/31/96 $10,598 $10,593 $10,602
8/31/96 $10,597 $10,592 $10,612
9/30/96 $10,687 $10,685 $10,699
10/31/96 $10,791 $10,794 $10,792
11/30/96 $10,969 $10,963 $10,932
12/31/96 $10,929 $10,924 $10,911
1/31/97 $10,948 $10,944 $10,949
2/28/97 $11,020 $11,019 $11,028
3/31/97 $10,920 $10,917 $10,908
4/30/97 $10,994 $10,970 $10,955
5/31/97 $11,122 $11,121 $11,090
6/30/97 $11,220 $11,219 $11,174
7/31/97 $11,468 $11,477 $11,371
8/31/97 $11,402 $11,388 $11,313
9/30/97 $11,501 $11,507 $11,414
10/31/97 $11,546 $11,539 $11,473
11/30/97 $11,613 $11,585 $11,508
12/31/97 $11,722 $11,734 $11,607
1/31/98 $11,834 $11,841 $11,713
2/28/98 $11,857 $11,853 $11,732
3/31/98 $11,857 $11,837 $11,742
4/30/98 $11,823 $11,766 $11,693
5/31/98 $11,960 $11,933 $11,833
6/30/98 $11,994 $11,968 $11,874
7/31/98 $12,041 $12,004 $11,915
8/31/98 $12,191 $12,182 $12,062
9/30/98 $12,342 $12,361 $12,186
10/31/98 $12,354 $12,346 $12,221
11/30/98 $12,377 $12,380 $12,243
12/31/98 $12,401 $12,390 $12,286
1/31/99 $12,519 $12,534 $12,416
2/28/99 $12,507 $12,478 $12,404
3/31/99 $12,531 $12,499 $12,415
4/30/99 $12,555 $12,511 $12,452
5/31/99 $12,507 $12,434 $12,401
6/30/99 $12,375 $12,273 $12,261
7/31/99 $12,435 $12,335 $12,337
8/31/99 $12,368 $12,293 $12,332
9/30/99 $12,411 $12,330 $12,377
10/31/99 $12,332 $12,230 $12,346
11/30/99 $12,424 $12,344 $12,419
12/31/99 $12,351 $12,257 $12,378
1/31/00 $12,370 $12,261 $12,373
2/29/00 $12,450 $12,370 $12,413
3/31/00 $12,606 $12,555 $12,526
</TABLE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
------------------------
Since
6 Months 1 Year 3 Years Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND 1.57 0.60 4.90 4.58
Lipper California Intermediate Municipal Debt Funds Index(b) 1.82 0.45 4.76 4.76
Lehman Brothers 5 Year Municipal Bond Index(c) 1.21 0.90 4.72 4.72
</TABLE>
[GRAPH]
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Loomis Sayles Lipper California Lehman Brothers
California Intermediate 5 Year Municipal
Tax-Free Municipal Debt Bond
Income Fund Funds Index Index
<S> <C> <C> <C>
3/31/97 $10,000 $10,000 $10,000
4/30/97 $10,005 $10,049 $10,043
5/31/97 $10,122 $10,188 $10,167
6/30/97 $10,211 $10,277 $10,244
7/31/97 $10,437 $10,514 $10,424
8/31/97 $10,377 $10,432 $10,371
9/30/97 $10,467 $10,541 $10,463
10/31/97 $10,508 $10,570 $10,518
11/30/97 $10,569 $10,612 $10,550
12/31/97 $10,667 $10,749 $10,641
1/31/98 $10,770 $10,847 $10,738
2/28/98 $10,791 $10,858 $10,755
3/31/98 $10,791 $10,843 $10,765
4/30/98 $10,760 $10,778 $10,719
5/31/98 $10,885 $10,931 $10,848
6/30/98 $10,916 $10,963 $10,885
7/31/98 $10,958 $10,996 $10,923
8/31/98 $11,095 $11,159 $11,057
9/30/98 $11,232 $11,323 $11,171
10/31/98 $11,243 $11,309 $11,204
11/30/98 $11,264 $11,341 $11,224
12/31/98 $11,286 $11,350 $11,263
1/31/99 $11,393 $11,482 $11,383
2/28/99 $11,383 $11,430 $11,371
3/31/99 $11,404 $11,449 $11,381
4/30/99 $11,426 $11,461 $11,416
5/31/99 $11,382 $11,390 $11,369
6/30/99 $11,262 $11,243 $11,240
7/31/99 $11,317 $11,299 $11,310
8/31/99 $11,256 $11,261 $11,305
9/30/99 $11,295 $11,294 $11,346
10/31/99 $11,223 $11,203 $11,318
11/30/99 $11,306 $11,307 $11,385
12/31/99 $11,241 $11,228 $11,347
1/31/00 $11,257 $11,231 $11,342
2/29/00 $11,331 $11,331 $11,380
3/31/00 $11,473 $11,501 $11,483
</TABLE>
The Fund's value may be affected by factors pertaining to the California
economy and other factors affecting the ability of issuers of California
tax-exempt securities to meet their obligations.
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. IT IS NOT
POSSIBLE TO INVEST IN AN INDEX.
(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 DEBT FUNDS INDEX AND LEHMAN BROTHERS 5 YEAR
MUNICIPAL BOND INDEX PERFORMANCE DATA IS NOT AVAILABLE COINCIDENT WITH
REGISTRATION DATE, COMPARATIVE PERFORMANCE IS PRESENTED FROM MARCH 31,
1997.
(b): THE LIPPER CALIFORNIA INTERMEDIATE MUNICIPAL DEBT FUNDS INDEX IS AN EQUALLY
WEIGHTED UNMANAGED INDEX OF TYPICALLY THE 10 LARGEST FUNDS WITHIN THE
CALIFORNIA INTERMEDIATE MUNICIPAL DEBT FUNDS INVESTMENT OBJECTIVE. RETURNS
ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL GAINS DISTRIBUTIONS AND INCOME
DIVIDENDS.
(c): THE LEHMAN BROTHERS 5 YEAR MUNICIPAL BOND INDEX IS AN UNMANAGED INDEX
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.
LOOMIS SAYLES INVESTMENT TRUST 4
<PAGE>
FUND AND MANAGER REVIEW
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-month period ended March 31, 2000, the Fund had a
total return of 1.12%, as compared to the Merrill Lynch Domestic Master Index
of 2.17%. For the same period, the average corporate debt funds A-rated, as
measured by Lipper Inc., had a total return of 1.63%.
Fixed income markets improved in the first quarter of 2000 after a difficult
year in 1999. Long Treasury bonds peaked in mid-January as investors began to
look through any remaining Federal Reserve Board interest rate increases to
better times ahead. Additionally, federal budget surpluses have caused the U.S.
Treasury to take the first steps toward national debt reduction by less issuance
and direct repurchases. The combined effect of these two events created a better
market for bonds in general and U.S. Treasuries in particular.
Investment grade corporate bonds and mortgage related securities posted positive
returns but generally lagged Treasuries, especially in longer maturities. While
the weaker performance of these sectors may reflect some negative sentiment in
the market, the larger reason may have been that Treasuries were just too
popular. High yield corporate bonds were also significant underperformers in the
opening months of 2000 as mutual fund outflows put the entire sector under
pressure. One bright spot was the Fund's position in Mexico's long government
bond, which was upgraded shortly after purchase.
The portfolio is currently positioned with an emphasis on investment grade and
high yield corporate bonds in intermediate maturities. Longer bonds in the
portfolio are primarily in high quality corporate bonds and U.S. Treasuries.
Overall, the portfolio has a lower exposure to interest rate volatility and a
strong yield advantage over the market index.
With the bond market off to a good start in 2000 and inflation still under
control, investors seem to have already put 1999 behind them. Yield advantages
on corporate bonds and mortgage related bonds are near ten-year highs and
economic growth continues to provide firm support to corporate earning
potential. As such, we believe the fundamentals for corporates and mortgages are
attractive and expect them to provide investors superior returns as supply
issues in the Treasury market subside.
WILLIAM F. CAMP IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES CORE FIXED
INCOME FUND.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
------------------------
Since
6 Months 1 Year 3 Years Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES CORE FIXED INCOME FUND 1.12 0.08 5.81 5.54
Lipper Corporate Debt Funds A-Rated Index(b) 1.97 0.87 5.92 5.91
Merrill Lynch Domestic Master Index(c) 2.17 1.95 6.75 6.57
Merrill Lynch Corporate/Government Master Index(c) 2.38 1.86 6.84 6.57
</TABLE>
[GRAPH]
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Loomis Sayles
Core Lipper Corporate Merrill Lynch Merrill Lynch
Fixed Debt Funds Domestic Master Corporate/Government
Income Fund A-Rated Index Index Master Index
<S> <C> <C> <C> <C>
4/30/96 $10,000 $10,000 $10,000 $10,000
5/31/96 $9,930 $9,978 $9,981 $9,986
6/30/96 $10,060 $10,103 $10,107 $10,113
7/31/96 $10,060 $10,124 $10,136 $10,137
8/31/96 $10,030 $10,096 $10,121 $10,113
9/30/96 $10,210 $10,288 $10,294 $10,288
10/31/96 $10,460 $10,539 $10,521 $10,524
11/30/96 $10,680 $10,755 $10,704 $10,718
12/31/96 $10,531 $10,634 $10,608 $10,604
1/31/97 $10,542 $10,650 $10,638 $10,618
2/28/97 $10,573 $10,687 $10,657 $10,630
3/31/97 $10,438 $10,540 $10,549 $10,521
4/30/97 $10,583 $10,689 $10,710 $10,677
5/31/97 $10,666 $10,788 $10,805 $10,769
6/30/97 $10,801 $10,934 $10,934 $10,900
7/31/97 $11,118 $11,286 $11,230 $11,231
8/31/97 $10,983 $11,143 $11,134 $11,104
9/30/97 $11,160 $11,333 $11,300 $11,282
10/31/97 $11,326 $11,479 $11,466 $11,469
11/30/97 $11,367 $11,533 $11,514 $11,518
12/31/97 $11,502 $11,656 $11,632 $11,641
1/31/98 $11,653 $11,795 $11,786 $11,810
2/28/98 $11,620 $11,774 $11,776 $11,782
3/31/98 $11,642 $11,819 $11,820 $11,826
4/30/98 $11,696 $11,873 $11,878 $11,878
5/31/98 $11,815 $12,001 $11,996 $12,008
6/30/98 $11,933 $12,108 $12,100 $12,135
7/31/98 $11,934 $12,110 $12,126 $12,146
8/31/98 $11,999 $12,218 $12,321 $12,376
9/30/98 $12,398 $12,491 $12,611 $12,721
10/31/98 $12,279 $12,333 $12,556 $12,651
11/30/98 $12,376 $12,467 $12,616 $12,698
12/31/98 $12,460 $12,508 $12,663 $12,750
1/31/99 $12,576 $12,614 $12,753 $12,842
2/28/99 $12,251 $12,334 $12,508 $12,519
3/31/99 $12,356 $12,415 $12,589 $12,598
4/30/99 $12,402 $12,456 $12,635 $12,639
5/31/99 $12,229 $12,314 $12,513 $12,501
6/30/99 $12,194 $12,254 $12,473 $12,464
7/31/99 $12,101 $12,199 $12,423 $12,428
8/31/99 $12,101 $12,166 $12,417 $12,418
9/30/99 $12,229 $12,282 $12,561 $12,532
10/31/99 $12,252 $12,300 $12,599 $12,556
11/30/99 $12,263 $12,309 $12,599 $12,551
12/31/99 $12,193 $12,253 $12,542 $12,488
1/31/00 $12,168 $12,226 $12,509 $12,484
2/29/00 $12,267 $12,356 $12,661 $12,634
3/31/00 $12,365 $12,523 $12,834 $12,830
</TABLE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
------------------------
Since
6 Months 1 Year 3 Years Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES CORE FIXED INCOME FUND 1.12 0.08 5.81 5.34
Lipper Corporate Debt Funds A-Rated Index(b) 1.97 0.87 5.92 5.92
Merrill Lynch Domestic Master Index(c) 2.17 1.95 6.75 6.75
Merrill Lynch Corporate/Government Master Index(c) 2.38 1.86 6.84 6.84
</TABLE>
[GRAPH]
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
[GRAPH]
Loomis Sayles Merrill Lynch
Core Fixed Lipper Corporate Merrill Lynch Corporate/
Income Debt Funds Domestic Government
Fund A-Rated Index Master Index Master Index
<S> <C> <C> <C> <C>
3/31/97 $10,000 $10,000 $10,000 $10,000
4/30/97 $10,039 $10,141 $10,152 $10,148
5/31/97 $10,118 $10,235 $10,243 $10,235
6/30/97 $10,246 $10,374 $10,365 $10,360
7/31/97 $10,547 $10,708 $10,646 $10,674
8/31/97 $10,419 $10,572 $10,555 $10,553
9/30/97 $10,586 $10,753 $10,712 $10,723
10/31/97 $10,744 $10,891 $10,870 $10,900
11/30/97 $10,783 $10,942 $10,915 $10,947
12/31/97 $10,911 $11,058 $11,027 $11,064
1/31/98 $11,054 $11,190 $11,173 $11,225
2/28/98 $11,024 $11,171 $11,163 $11,198
3/31/98 $11,044 $11,213 $11,205 $11,239
4/30/98 $11,095 $11,264 $11,260 $11,289
5/31/98 $11,208 $11,386 $11,371 $11,412
6/30/98 $11,320 $11,488 $11,470 $11,533
7/31/98 $11,321 $11,490 $11,495 $11,543
8/31/98 $11,382 $11,592 $11,680 $11,761
9/30/98 $11,761 $11,851 $11,955 $12,089
10/31/98 $11,648 $11,701 $11,903 $12,023
11/30/98 $11,741 $11,828 $11,960 $12,067
12/31/98 $11,820 $11,867 $12,004 $12,117
1/31/99 $11,930 $11,967 $12,089 $12,204
2/28/99 $11,622 $11,702 $11,857 $11,897
3/31/99 $11,721 $11,779 $11,934 $11,971
4/30/99 $11,765 $11,817 $11,977 $12,011
5/31/99 $11,600 $11,683 $11,862 $11,880
6/30/99 $11,567 $11,626 $11,824 $11,844
7/31/99 $11,479 $11,574 $11,777 $11,810
8/31/99 $11,479 $11,542 $11,770 $11,800
9/30/99 $11,600 $11,652 $11,907 $11,909
10/31/99 $11,622 $11,670 $11,944 $11,931
11/30/99 $11,633 $11,678 $11,944 $11,927
12/31/99 $11,566 $11,625 $11,889 $11,867
1/31/00 $11,543 $11,600 $11,858 $11,863
2/29/00 $11,636 $11,723 $12,002 $12,006
3/31/00 $11,730 $11,882 $12,166 $12,192
</TABLE>
High yield securities are subject to a high degree of market and credit risk.
In addition, the secondary market for these securities may lack liquidity which,
in turn, may adversely affect the value of these securities and that of the
Fund.
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. IT IS NOT
POSSIBLE TO INVEST IN AN INDEX.
(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 DEBT
FUNDS A-RATED INDEX, MERRILL LYNCH DOMESTIC MASTER INDEX AND 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): THE LIPPER CORPORATE DEBT FUNDS A-RATED INDEX IS AN EQUALLY WEIGHTED
UNMANAGED INDEX OF TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE
CORPORATE BOND FUNDS A-RATED INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR
THE REINVESTMENT OF CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS.
(c): THE FUND CHANGED ITS BENCHMARK INDEX DURING THE PERIOD ENDED MARCH 31, 2000
FROM THE MERRILL LYNCH CORPORATE/GOVERNMENT MASTER INDEX TO THE MERRILL
LYNCH DOMESTIC MASTER INDEX ("INDEX"), WHICH IS AN UNMANAGED INDEX
COMPRISING OF U.S. INVESTMENT GRADE FIXED INCOME SECURITIES. THE INDEX
INCLUDES U.S. TREASURY NOTES AND BONDS, U.S. AGENCY SECURITIES, MORTGAGE
PASS-THROUGH SECURITIES, AND CORPORATE SECURITIES. THE MERRILL LYNCH
DOMESTIC MASTER INDEX BETTER REPRESENTS THE INVESTMENT STRATEGY OF THE
FUND. THE INDEX RETURNS HAVE NOT BEEN LOWERED FOR ONGOING MANAGEMENT AND
OPERATING EXPENSES APPLICABLE TO MUTUAL FUND INVESTMENTS. SOURCE: MERRILL
LYNCH.
LOOMIS SAYLES INVESTMENT TRUST 6
<PAGE>
FUND AND MANAGER REVIEW
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-month period ended March 31, 2000, the Fund had a total return of
6.02%, as compared to the Fund's benchmark, the Lehman Brothers
Government/Corporate Bond Index, total return of 2.27%. For the same period,
the average corporate debt fund BBB-rated, as measured by Lipper Analytical
Services, had a total return of 1.88%.
Liquidity remains thin in the bond arena where, in the trailing six months, the
market experienced such event risks as fluctuations in interest rates, yield
curve inversion, U.S. Treasury buybacks, and government debt surpluses. The
close of 1999 had high yield markets offering generous returns while, in
contrast, the first quarter of 2000 was subjected to a flight to quality. In
addition to this, the Federal Reserve Board raised short interest rates three
times by 25 basis points over the period resulting in a contraction of the
bellwether 30-year Treasury bond yield to 5.83%. As a result, corporate credit
spreads widened due to higher Treasury movers and lack of an appropriate
benchmark caused by the yield curve inversion. On the foreign front, emerging
markets continued to rally, boosted by Korea's and Mexico's attainment of
investment grade status, the successful restructuring of Indonesia and Malaysia,
and Brazil's continued strong economy. The Energy and Oil sectors rallied, due
to a prolonged climb in oil prices, and convertible bonds continued to add
significant value to the Fund, buoyed by a surging equity market. In addition,
the Fund has maintained a considerable position in Canadian government and
provincial debt bonds, which is due to Canada's strong credit profile and the
call-protection these bonds provide.
There has been no change to the strategy of the Fund. We believe that this is a
good time for the Fund to opportunistically buy discounted credits with fairly
long maturities. In our view, gaining extra value through emphasizing non-market
related factors would also prove to be beneficial. The Fund will take a more
cautious approach than normal towards corporate credits due to competitive
selling pressure and lack of leverage. We believe that the Fund remains well
diversified, while offering call protection and a significant yield advantage.
DANIEL J. FUSS IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES FIXED INCOME FUND.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
--------------------------------------
Since
6 Months 1 Year 3 Years 5 Years Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LOOMIS SAYLES FIXED INCOME FUND 6.02 4.64 7.99 11.03 11.62
Lipper Corporate Debt Funds BBB-Rated Index(b) 2.15 0.94 5.83 7.08 7.48
Lehman Brothers Government/Corporate
Bond Index(c) 2.27 1.70 6.79 7.13 7.51
</TABLE>
[GRAPH]
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Loomis Sayles Lehman Brothers
Fixed Lipper Corporate Government/Corporate
Income Debt Funds Bond
Fund BBB-Rated Index Index
<S> <C> <C> <C>
1/31/95 $10,000 $10,000 $10,000
2/28/95 $10,320 $10,228 $10,232
3/31/95 $10,500 $10,309 $10,301
4/30/95 $10,810 $10,494 $10,444
5/31/95 $11,380 $10,947 $10,882
6/30/95 $11,550 $11,030 $10,969
7/31/95 $11,540 $11,004 $10,927
8/31/95 $11,770 $11,166 $11,066
9/30/95 $12,100 $11,296 $11,179
10/31/95 $12,140 $11,447 $11,343
11/30/95 $12,440 $11,635 $11,530
12/31/95 $12,742 $11,827 $11,700
1/31/96 $12,995 $11,922 $11,772
2/29/96 $12,626 $11,671 $11,523
3/31/96 $12,563 $11,585 $11,426
4/30/96 $12,447 $11,511 $11,347
5/31/96 $12,563 $11,504 $11,328
6/30/96 $12,721 $11,635 $11,480
7/31/96 $12,700 $11,664 $11,506
8/31/96 $12,869 $11,658 $11,478
9/30/96 $13,269 $11,892 $11,682
10/31/96 $13,693 $12,177 $11,955
11/30/96 $14,211 $12,449 $12,175
12/31/96 $13,986 $12,328 $12,039
1/31/97 $14,032 $12,367 $12,054
2/28/97 $14,229 $12,438 $12,079
3/31/97 $14,067 $12,246 $11,935
4/30/97 $14,218 $12,427 $12,110
5/31/97 $14,565 $12,569 $12,223
6/30/97 $14,878 $12,756 $12,370
7/31/97 $15,556 $13,198 $12,748
8/31/97 $15,250 $13,023 $12,605
9/30/97 $15,698 $13,252 $12,803
10/31/97 $15,733 $13,386 $13,008
11/30/97 $15,851 $13,452 $13,077
12/31/97 $15,860 $13,596 $13,214
1/31/98 $16,049 $13,770 $13,400
2/28/98 $16,187 $13,765 $13,373
3/31/98 $16,427 $13,834 $13,414
4/30/98 $16,490 $13,894 $13,482
5/31/98 $16,502 $14,013 $13,627
6/30/98 $16,515 $14,115 $13,765
7/31/98 $16,372 $14,104 $13,776
8/31/98 $15,258 $14,002 $14,045
9/30/98 $15,789 $14,291 $14,447
10/31/98 $15,625 $14,114 $14,345
11/30/98 $16,460 $14,375 $14,430
12/31/98 $16,447 $14,411 $14,466
1/31/99 $16,723 $14,536 $14,569
2/28/99 $16,391 $14,222 $14,222
3/31/99 $16,930 $14,380 $14,293
4/30/99 $17,455 $14,483 $14,328
5/31/99 $17,068 $14,288 $14,180
6/30/99 $16,972 $14,213 $14,136
7/31/99 $16,723 $14,141 $14,097
8/31/99 $16,585 $14,089 $14,086
9/30/99 $16,709 $14,210 $14,213
10/31/99 $16,751 $14,238 $14,250
11/30/99 $16,861 $14,272 $14,242
12/31/99 $17,064 $14,249 $14,155
1/31/00 $17,004 $14,208 $14,151
2/28/00 $17,523 $14,382 $14,329
3/31/00 $17,715 $14,515 $14,536
</TABLE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
-------------------------------
Since
6 Months 1 Year 3 Years Registration(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES FIXED INCOME FUND 6.02 4.64 7.99 7.49
Lipper Corporate Debt Funds BBB-Rated Index(b) 2.15 0.94 5.83 5.83
Lehman Brothers Government/Corporate Bond Index(c) 2.27 1.70 6.79 6.79
</TABLE>
[GRAPH]
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Loomis
Sayles Lehman Brothers
Fixed Lipper Corporate Government/Corporate
Income Debt Funds Bond
Fund BBB-Rated Index Index
<S> <C> <C> <C>
3/31/97 $10,000 $10,000 $10,000
4/30/97 $10,016 $10,148 $10,146
5/31/97 $10,261 $10,264 $10,241
6/30/97 $10,481 $10,417 $10,364
7/31/97 $10,959 $10,777 $10,681
8/31/97 $10,743 $10,634 $10,561
9/30/97 $11,058 $10,821 $10,727
10/31/97 $11,083 $10,931 $10,899
11/30/97 $11,166 $10,985 $10,956
12/31/97 $11,173 $11,103 $11,071
1/31/98 $11,306 $11,244 $11,227
2/28/98 $11,403 $11,240 $11,205
3/31/98 $11,572 $11,297 $11,239
4/30/98 $11,616 $11,346 $11,296
5/31/98 $11,625 $11,443 $11,417
6/30/98 $11,634 $11,527 $11,533
7/31/98 $11,533 $11,518 $11,542
8/31/98 $10,748 $11,434 $11,768
9/30/98 $11,123 $11,670 $12,104
10/31/98 $11,007 $11,526 $12,019
11/30/98 $11,596 $11,739 $12,090
12/31/98 $11,586 $11,768 $12,120
1/31/99 $11,781 $11,870 $12,206
2/28/99 $11,547 $11,614 $11,916
3/31/99 $11,927 $11,743 $11,975
4/30/99 $12,297 $11,827 $12,005
5/31/99 $12,024 $11,668 $11,881
6/30/99 $11,956 $11,606 $11,844
7/31/99 $11,781 $11,548 $11,811
8/31/99 $11,684 $11,505 $11,802
9/30/99 $11,771 $11,604 $11,908
10/31/99 $11,801 $11,627 $11,939
11/30/99 $11,878 $11,655 $11,932
12/31/99 $12,021 $11,636 $11,860
1/31/00 $11,979 $11,602 $11,856
2/28/00 $12,344 $11,745 $12,005
3/31/00 $12,480 $11,853 $12,179
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in emerging
markets. In addition, foreign countries may have different accounting standards
than those of the U.S., which may adversely affect the value of the Fund. High
yield securities are subject to a high degree of market and credit risk. In
addition, the secondary market for these securities may lack liquidity which, in
turn, may adversely affect the value of these securities and that of the Fund.
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. IT IS NOT
POSSIBLE TO INVEST IN AN INDEX.
(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 CORPORATE DEBT FUNDS BBB-RATED
INDEX AND 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): THE LIPPER CORPORATE DEBT FUNDS BBB-RATED INDEX IS AN EQUALLY WEIGHTED
UNMANAGED INDEX OF TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE
BBB-RATED FUNDS INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE
REINVESTMENT OF CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS.
(c): LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX IS AN UNMANAGED INDEX WHICH
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. SOURE: LEHMAN BROTHERS.
LOOMIS SAYLES INVESTMENT TRUST 8
<PAGE>
FUND AND MANAGER REVIEW
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-month period ended March 31, 2000, the Fund had a
total return of 10.20%, as compared to the Fund's benchmark, the Merrill Lynch
High Yield Master Index, total return of -0.74%. For the same period, the
average high current yield fund, as measured by Lipper Analytical Services, had
a total return of 1.27%.
There were no major shifts in portfolio strategy during the period and the
Fund performed well due to its non-market relatedness (low interest rate
sensitivity, high coupon and yield, and short maturity), its equity-related
holdings, and the continued surge of emerging market issues. In the first
three months there was apprehension with the approach of Y2K, the threat of
inflation, fluctuations in interest rates, rising yields and decreased
liquidity in the secondary markets. The most recent three months witnessed
yield curve inversion, U.S. Treasury buybacks, and government debt surpluses.
To add to this, the Federal Reserve Board raised interest rates by 25 basis
points three times over the period. On the foreign front, the emerging
markets continued to rally, boosted by Korea's attainment of investment grade
status, the successful restructuring of Indonesian and Malaysian economies,
Mexico's upgrade to investment grade status, and Brazil's continued strong
economic numbers. The Energy and Oil sectors rallied, due to a prolonged
climb in oil prices, and convertible securities continued to add significant
value to the Fund, buoyed by a surging equity market. The Fund performed
admirably well by continuing to stress its bottom-up approach, diversifying
across numerous sectors, and concentrating on convertible securities and
Yankee bonds (foreign issues denominated in U.S. dollars).
The Fund's outperformance over the past six months, in general, has been the
result of the recovery of emerging markets and strength in convertible
securities. It was also positively affected by the return to liquidity to many
of the smaller, less-known bonds we hold, in addition to some successful issue
and sector selections. As of March 31, 2000, the top holdings were RCN Corp.
(2.4%), Teligent, Inc. (2.2%), Republic of Peru (2.2%), and Republic of
Venezuela (2.1%). We believe that the Fund remains well diversified, and has
good call protection and moderate upgrade potential.
DANIEL J. FUSS IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES HIGH YIELD
FIXED INCOME FUND.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
----------------------------
Since
6 Months 1 Year 3 Years Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND 10.20 11.93 6.47 6.53
Lipper High Current Yield Funds Index(b) 1.13 0.00 5.12 6.46
Merrill Lynch High Yield Master Index(c) -0.74 -1.33 4.90 6.35
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
[GRAPH]
EDGAR REPRESENTATION OF PLOT POINTS USED FOR PRINTED GRAPHIC
Loomis Sayles Lipper High Merrill Lynch
High Yield Current Yield High Yield
Fixed Income Funds Master
Fund Index Index
<S> <C> <C> <C>
6/30/96 $10,000 $10,000 $10,000
7/31/96 $9,970 $10,046 $10,068
8/31/96 $10,110 $10,208 $10,172
9/30/96 $10,380 $10,474 $10,390
10/31/96 $10,440 $10,524 $10,504
11/30/96 $10,740 $10,705 $10,716
12/31/96 $10,764 $10,837 $10,799
1/31/97 $10,817 $10,944 $10,882
2/28/97 $10,732 $11,128 $11,034
3/31/97 $10,552 $10,887 $10,912
4/30/97 $10,689 $10,980 $11,036
5/31/97 $11,007 $11,270 $11,258
6/30/97 $11,219 $11,463 $11,430
7/31/97 $11,781 $11,769 $11,704
8/31/97 $11,770 $11,796 $11,684
9/30/97 $12,130 $12,082 $11,877
10/31/97 $11,770 $12,034 $11,956
11/30/97 $11,823 $12,122 $12,069
12/31/97 $11,715 $12,265 $12,184
1/31/98 $11,878 $12,503 $12,365
2/28/98 $12,112 $12,621 $12,416
3/31/98 $12,497 $12,804 $12,523
4/30/98 $12,462 $12,844 $12,583
5/31/98 $12,123 $12,829 $12,670
6/30/98 $11,843 $12,852 $12,733
7/31/98 $11,699 $12,940 $12,806
8/31/98 $9,922 $11,954 $12,253
9/30/98 $9,898 $11,882 $12,278
10/31/98 $9,887 $11,612 $12,076
11/30/98 $10,834 $12,294 $12,626
12/31/98 $10,676 $12,256 $12,630
1/31/99 $10,937 $12,478 $12,755
2/28/99 $10,868 $12,427 $12,658
3/31/99 $11,377 $12,646 $12,767
4/30/99 $12,092 $12,974 $12,966
5/31/99 $11,748 $12,727 $12,876
6/30/99 $11,927 $12,729 $12,852
7/31/99 $11,831 $12,733 $12,871
8/31/99 $11,583 $12,604 $12,746
9/30/99 $11,556 $12,506 $12,692
10/31/99 $11,831 $12,469 $12,617
11/30/99 $12,106 $12,689 $12,762
12/31/99 $12,383 $12,842 $12,829
1/31/00 $12,337 $12,779 $12,765
2/29/00 $12,719 $12,869 $12,776
3/31/00 $12,734 $12,647 $12,597
</TABLE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
-----------------------------
Since
6 Months 1 Year 3 Years Registration(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND 10.20 11.93 6.47 5.87
Lipper High Current Yield Funds Index(b) 1.13 0.00 5.12 5.12
Merrill Lynch High Yield Master Index(c) -0.74 -1.33 4.90 4.90
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
[GRAPH]
EDGAR REPRESENTATION OF PLOT POINTS USED FOR PRINTED GRAPHIC
<TABLE>
<CAPTION>
Loomis Sayles Merrill Lynch
High Yield Lipper High High Yield
Fixed Current Yield Master
Income Fund Funds Index Index
<S> <C> <C> <C>
3/31/97 $10,000 $10,000 $10,000
4/30/97 $10,000 $10,085 $10,114
5/31/97 $10,297 $10,352 $10,318
6/30/97 $10,496 $10,529 $10,475
7/31/97 $11,021 $10,810 $10,726
8/31/97 $11,011 $10,835 $10,707
9/30/97 $11,348 $11,097 $10,885
10/31/97 $11,011 $11,054 $10,957
11/30/97 $11,061 $11,134 $11,061
12/31/97 $10,959 $11,265 $11,166
1/31/98 $11,112 $11,484 $11,332
2/28/98 $11,331 $11,592 $11,379
3/31/98 $11,691 $11,760 $11,477
4/30/98 $11,658 $11,797 $11,531
5/31/98 $11,342 $11,784 $11,611
6/30/98 $11,080 $11,805 $11,669
7/31/98 $10,945 $11,885 $11,736
8/31/98 $9,282 $10,980 $11,229
9/30/98 $9,260 $10,914 $11,252
10/31/98 $9,249 $10,666 $11,067
11/30/98 $10,141 $11,292 $11,571
12/31/98 $9,987 $11,257 $11,575
1/31/99 $10,232 $11,461 $11,689
2/28/99 $10,167 $11,415 $11,600
3/31/99 $10,643 $11,616 $11,700
4/30/99 $11,312 $11,916 $11,883
5/31/99 $10,991 $11,690 $11,800
6/30/99 $11,158 $11,692 $11,778
7/31/99 $11,068 $11,695 $11,796
8/31/99 $10,836 $11,577 $11,680
9/30/99 $10,810 $11,487 $11,631
10/31/99 $11,068 $11,453 $11,563
11/30/99 $11,325 $11,655 $11,695
12/31/99 $11,584 $11,795 $11,757
1/31/00 $11,541 $11,738 $11,698
2/29/00 $11,898 $11,821 $11,708
3/31/00 $11,913 $11,616 $11,545
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in emerging
markets. In addition, foreign countries may have different accounting standards
than those of the U.S., which may adversely affect the value of the Fund. High
yield securities are subject to a high degree of market and credit risk. In
addition, the secondary market for these securities may lack liquidity which, in
turn, may adversely affect the value of these securities and that of the Fund.
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. IT IS NOT
POSSIBLE TO INVEST IN AN INDEX.
(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
FUNDS INDEX AND 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): THE LIPPER HIGH CURRENT YIELD FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED
INDEX OF TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE HIGH CURRENT
YIELD FUNDS INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT
OF CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS.
(c): THE MERRILL LYNCH HIGH YIELD MASTER INDEX IS AN UNMANAGED INDEX CONSISTING
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., DDI OR LESS). THE INDEX EXCLUDES FLOATING RATE DEBT
EQUIPMENT TRUST BOND CERTIFICATES AND TITLE II SECURITIES. THE INDEX
RETURNS HAVE NOT BEEN LOWERED FOR ONGOING MANAGEMENT AND OPERATING EXPENSES
APPLICABLE TO MUTUAL FUND INVESTMENTS. SOURCE: MERRILL LYNCH.
LOOMIS SAYLES INVESTMENT TRUST 10
<PAGE>
FUND AND MANAGER REVIEW
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-month period ended March 31, 2000, the Fund had a
total return of 2.57%, as compared to the Fund's benchmark, the Lehman Brothers
Government/Corporate Intermediate Bond Index, total return of 1.56%. For the
same period, the average intermediate investment grade debt fund, as measured by
Lipper Inc. had a total return of 1.61%.
The fiscal year began with apprehensions of Y2K, the threat of inflation,
fluctuations in interest rates, rising yields and decreased liquidity in the
secondary markets. With an equity-driven environment and a flattening yield
curve, bond market sentiment was negative. Then new millennium witnessed yield
curve inversion, U.S. Treasury buybacks, and government debt surpluses. While
Treasury bond prices moved higher, corporate securities lagged. Corporate yield
spreads moved significantly wider as investors in this sector established a more
defensive posture in response to increasing concerns about event risk and
liquidity. Importantly, the wider spreads in the corporate sector largely
reflect diminished demand from traditional buyers rather than a broad
deterioration in average credit quality.
Oil and gas sectors had positive returns as higher oil prices boosted the
industry. Yankee bonds (foreign issues denominated in U.S. dollars) proved to be
beneficial to performance, in particular Industrial Finance Corp. of Thailand.
Agency markets were unsettled as a result of recent talk of tighter regulations
on government-sponsored enterprises (GSEs). Investors pulled money away from
agency debt and moved to U.S. Treasury securities resulting in a widening of
agency spreads.
The wider corporate bond yield spreads, which materialized during March, have
created several interesting "buy" opportunities. Since the Fund has a "value"
orientation, we are constantly seeking securities which we believe are priced
below their intrinsic values based on our internal fundamental analysis. We
believe that the lagging performance of corporate bonds relative to Treasury
securities has resulted in more attractive valuations for this sector of the
market. We will continue to focus on identifying undervalued credits in an
attempt to create a flexible balance between high current income with the
potential for capital appreciation.
ANTHONY J. WILKINS IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES
INTERMEDIATE DURATION FIXED INCOME FUND.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
--------------
Since
6 Months 1 Year Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND 2.57 3.53 3.74
Lipper Intermediate Investment Grade Debt Funds Index(b) 1.77 1.38 3.39
Lehman Brothers Government/Corporate Intermediate Bond Index(c) 1.56 2.09 4.09
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
[GRAPH]
EDGAR REPRESENTATION OF PLOT POINTS USED FOR PRINTED GRAPHIC
Loomis Sayles Lipper Intermediate Lehman Brothers
Intermediate Duration Investment Government/Corporate
Fixed Income Grade Debt Intermediaite
Fund Funds Index Bond Index
<S> <C> <C> <C>
1/31/98 $10,000 $10,000 $10,000
2/28/98 $10,040 $9,986 $9,992
3/31/98 $10,080 $10,022 $10,024
4/30/98 $10,121 $10,069 $10,075
5/31/98 $10,181 $10,160 $10,149
6/30/98 $10,212 $10,241 $10,213
7/31/98 $10,253 $10,262 $10,249
8/31/98 $10,150 $10,401 $10,410
9/30/98 $10,191 $10,634 $10,672
10/31/98 $10,211 $10,548 $10,662
11/30/98 $10,305 $10,601 $10,661
12/31/98 $10,321 $10,646 $10,704
1/31/99 $10,417 $10,712 $10,762
2/28/99 $10,321 $10,521 $10,604
3/31/99 $10,460 $10,604 $10,683
4/30/99 $10,578 $10,693 $10,716
5/31/99 $10,427 $10,531 $10,634
6/30/99 $10,460 $10,495 $10,641
7/31/99 $10,438 $10,458 $10,632
8/31/99 $10,415 $10,447 $10,640
9/30/99 $10,559 $10,562 $10,739
10/31/99 $10,592 $10,578 $10,767
11/30/99 $10,648 $10,591 $10,780
12/31/99 $10,659 $10,542 $10,745
1/31/00 $10,625 $10,505 $10,705
2/28/00 $10,727 $10,619 $10,794
3/31/00 $10,830 $10,750 $10,906
</TABLE>
Foreign investments involve special risks including greater economic,
political and currency fluctuation risks, which may be even greater in emerging
markets. In addition, foreign countries may have different accounting standards
than those of the U.S., which may adversely affect the value of the Fund.
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. IT IS NOT
POSSIBLE TO INVEST IN AN INDEX.
(a): INCEPTION DATE OF THE LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND
IS JANUARY 28, 1998. SINCE LIPPER INTERMEDIATE INVESTMENT GRADE DEBT FUNDS
INDEX AND LEHMAN BROTHERS GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX
PERFORMANCE DATA IS NOT AVAILABLE COINCIDENT WITH THE INCEPTION DATE,
COMPARATIVE PERFORMACE IS PRESENTED FROM JANUARY 31, 1998.
(b): THE LIPPER INTERMEDIATE INVESTMENT GRADE DEBT FUNDS INDEX IS AN EQUALLY
WEIGHTED UNMANAGED INDEX OF TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN
THE INTERMEDIATE INVESTMENT GRADE DEBT FUNDS INVESTMENT OBJECTIVE. RETURNS
ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL GAINS DISTRIBUTIONS AND INCOME
DIVIDENDS.
(c): THE LEHMAN BROTHERS GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX IS AN
UNMANAGED INDEX CONSISTING 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 MATURITY. THE INDEX RETURNS HAVE NOT BEEN LOWERED FOR
ONGOING MANAGEMENT AND OPERATING EXPENSES APPLICABLE TO MUTUAL FUND
INVESTMENTS. SOURCE: LEHMAN BROTHERS.
LOOMIS SAYLES INVESTMENT TRUST 12
<PAGE>
FUND AND MANAGER REVIEW
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-month period ended March 31, 2000, the Fund had a
total return of 5.56%, as compared to the Fund's benchmark, the Lehman
Brothers Government/Corporate Bond Index, total return of 2.27%. For the same
period, the average corporate debt fund BBB-rated, as measured by Lipper
Inc., had a total return of 1.88%.
There were no changes in portfolio strategy over the period and the Fund
maintains its long-term investment strategy of buying longer, discounted
corporate bonds for the added yield and call protection they provide. During
the first three months of the fiscal year, there was apprehension with the
approach of Y2K, the threat of inflation, fluctuations in interest rates,
rising yields and decreased liquidity in the secondary markets. The most
recent three months witnessed yield curve inversion, U.S. Treasury buybacks,
and government debt surpluses. To add to this, the Federal Reserve Board
raised interest rates by 25 basis points three times over the period. On the
foreign front, the emerging markets continued to rally, boosted by Korea's
attainment of investment grade status, the successful restructuring of
Indonesian and Malaysian economies, Mexico's upgrade to investment grade
status, and Brazil's continued strong economy. The Energy and Oil sectors
rallied, due to a prolonged climb in oil prices, and convertible securities
continued to add significant value to the Fund, buoyed by a surging equity
market. The Fund performed admirably well by continuing to stress its
bottom-up approach, diversifying across numerous sectors, and concentrating
on convertibles and Yankee bonds (foreign issues denominated in U.S.
dollars).
The Fund's outperformance over the past six months can be attributed to its
large positions in convertible securities, emerging markets securities, and
Yankee bonds. It was also positively affected by the return of liquidity to
many of the smaller, less-known issues we hold, in addition to some
successful issue and sector selections. As of March 31, 2000, the top
holdings were Loews Corp. (3.5%); Canadian Government (3.5%); Tenaga Nasional
Berhad (2.9%); and Atlas Air Inc. (2.3%). We believe that the Fund remains
well diversified and has good call protection and moderate upgrade potential.
DANIEL J. FUSS IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES INVESTMENT GRADE
FIXED INCOME FUND.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
----------------------------------------
Since
6 Months 1 Year 3 Years 5 Years Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LOOMIS SAYLES INVESTMENT GRADE
FIXED INCOME FUND 5.56 3.96 7.36 10.37 10.35
Lipper Corporate Debt Funds BBB-Rated Index(b) 2.15 0.94 5.83 7.08 7.11
Lehman Brothers Government/Corporate
Bond Index(c) 2.27 1.70 6.79 7.13 7.23
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
[GRAPH]
EDGAR REPRESENTATION OF PLOT POINTS USED FOR PRINTED GRAPHIC
Loomis Sayles
Investment Lipper Corporate Lehman Brothers
Grade Fixed Debt Funds Government/Corp.
Income Fund BBB-Rated Index Bond Index
<S> <C> <C> <C>
7/1/94 $10,000 $10,000 $10,000
7/31/94 $10,120 $10,171 $10,200
8/31/94 $10,310 $10,211 $10,204
9/30/94 $10,078 $10,070 $10,050
10/31/94 $9,987 $10,038 $10,038
11/30/94 $9,915 $10,011 $10,020
12/31/94 $9,974 $10,061 $10,086
1/31/95 $10,152 $10,224 $10,280
2/28/95 $10,573 $10,457 $10,519
3/31/95 $10,753 $10,539 $10,589
4/30/95 $11,051 $10,729 $10,737
5/31/95 $11,618 $11,192 $11,187
6/30/95 $11,822 $11,276 $11,276
7/31/95 $11,745 $11,250 $11,233
8/31/95 $11,964 $11,415 $11,376
9/30/95 $12,270 $11,549 $11,492
10/31/95 $12,435 $11,703 $11,661
11/30/95 $12,755 $11,895 $11,853
12/31/95 $12,989 $12,091 $12,027
1/31/96 $13,214 $12,189 $12,102
2/29/96 $12,909 $11,932 $11,845
3/31/96 $12,909 $11,844 $11,746
4/30/96 $12,806 $11,769 $11,665
5/31/96 $12,874 $11,761 $11,646
6/30/96 $13,071 $11,895 $11,801
7/31/96 $13,106 $11,925 $11,829
8/31/96 $13,187 $11,919 $11,800
9/30/96 $13,598 $12,158 $12,009
10/31/96 $14,166 $12,449 $12,290
11/30/96 $14,665 $12,727 $12,516
12/31/96 $14,406 $12,604 $12,376
1/31/97 $14,382 $12,644 $12,391
2/28/97 $14,529 $12,716 $12,417
3/31/97 $14,233 $12,520 $12,270
4/30/97 $14,444 $12,705 $12,449
5/31/97 $14,683 $12,850 $12,565
6/30/97 $14,959 $13,042 $12,716
7/31/97 $15,722 $13,493 $13,105
8/31/97 $15,276 $13,314 $12,958
9/30/97 $15,687 $13,548 $13,162
10/31/97 $15,829 $13,686 $13,373
11/30/97 $15,855 $13,753 $13,443
12/31/97 $15,932 $13,900 $13,584
1/31/98 $16,105 $14,077 $13,776
2/28/98 $16,198 $14,072 $13,748
3/31/98 $16,372 $14,144 $13,790
4/30/98 $16,412 $14,204 $13,859
5/31/98 $16,521 $14,326 $14,008
6/30/98 $16,535 $14,431 $14,151
7/31/98 $16,326 $14,420 $14,162
8/31/98 $15,469 $14,315 $14,439
9/30/98 $15,927 $14,610 $14,852
10/31/98 $15,788 $14,430 $14,747
11/30/98 $16,365 $14,697 $14,835
12/31/98 $16,463 $14,733 $14,871
1/31/99 $16,780 $14,861 $14,977
2/28/99 $16,520 $14,540 $14,621
3/31/99 $16,942 $14,702 $14,693
4/30/99 $17,352 $14,807 $14,730
5/31/99 $17,028 $14,607 $14,578
6/30/99 $16,859 $14,531 $14,532
7/31/98 $16,627 $14,457 $14,492
8/31/99 $16,558 $14,404 $14,480
9/30/99 $16,685 $14,528 $14,611
10/31/99 $16,634 $14,556 $14,649
11/30/99 $16,748 $14,591 $14,641
12/31/99 $16,872 $14,568 $14,552
1/31/00 $16,864 $14,525 $14,548
2/28/00 $17,355 $14,704 $14,730
3/31/00 $17,613 $14,839 $14,943
</TABLE>
<TABLE>
<CAPTION>
AVERAGE RETURNS(%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
------------------------------
Since
6 Months 1 Year 3 Years Registration(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND 5.56 3.96 7.36 6.62
Lipper Corporate Debt Funds BBB-Rated Index(b) 2.15 0.94 5.83 5.83
Lehman Brothers Government/Corporate Bond Index(c) 2.27 1.70 6.79 6.79
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
[GRAPH]
EDGAR REPRESENTATION OF PLOT POINTS USED FOR PRINTED GRAPHIC
Loomis Sayles Lehman Brothers
Investment Lipper Corporate Government/Corp.
Grade Fixed Debt Funds Bond
Income Fund BBB-Rated Index Index
<S> <C> <C> <C>
3/31/97 $10,000 $10,000 $10,000
4/30/97 $9,984 $10,148 $10,146
5/31/97 $10,149 $10,264 $10,241
6/30/97 $10,340 $10,417 $10,364
7/31/97 $10,867 $10,777 $10,681
8/31/97 $10,559 $10,634 $10,561
9/30/97 $10,843 $10,821 $10,727
10/31/97 $10,941 $10,931 $10,899
11/30/97 $10,959 $10,985 $10,956
12/31/97 $11,012 $11,103 $11,071
1/31/98 $11,132 $11,244 $11,227
2/28/98 $11,196 $11,240 $11,205
3/31/98 $11,316 $11,297 $11,239
4/30/98 $11,344 $11,346 $11,296
5/31/98 $11,419 $11,443 $11,417
6/30/98 $11,429 $11,527 $11,533
7/31/98 $11,284 $11,518 $11,542
8/31/98 $10,692 $11,434 $11,768
9/30/98 $11,009 $11,670 $12,104
10/31/98 $10,913 $11,526 $12,019
11/30/98 $11,312 $11,739 $12,090
12/31/98 $11,379 $11,768 $12,120
1/31/99 $11,599 $11,870 $12,206
2/28/99 $11,419 $11,614 $11,916
3/31/99 $11,711 $11,743 $11,975
4/30/99 $11,995 $11,827 $12,005
5/31/99 $11,770 $11,668 $11,881
6/30/99 $11,653 $11,606 $11,844
7/31/99 $11,493 $11,548 $11,811
8/31/99 $11,446 $11,505 $11,802
9/30/99 $11,533 $11,604 $11,908
10/31/99 $11,498 $11,627 $11,939
11/30/99 $11,577 $11,655 $11,932
12/31/99 $11,663 $11,636 $11,860
1/31/00 $11,657 $11,602 $11,856
2/28/00 $11,996 $11,745 $12,005
3/31/00 $12,175 $11,853 $12,179
</TABLE>
Foreign investments involve special risks including greater economic, political
and currency fluctuation risks, which may be even greater in emerging markets.
In addition, foreign countries may have different accounting standards than
those of the U.S., which may adversely affect the value of the Fund. High yield
securities are subject to a high degree of market and credit risk. In addition,
the secondary market for these securities may lack liquidity which, in turn, may
adversely affect the value of these securities and that of the Fund.
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. IT IS NOT
POSSIBLE TO INVEST IN AN INDEX.
(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 CORPORATE DEBT FUNDS
BBB-RATED INDEX AND 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): THE LIPPER CORPORATE DEBT FUNDS BBB-RATED INDEX IS AN EQUALLY WEIGHTED
UNMANAGED INDEX OF TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE BBB
RATED FUNDS INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT
OF CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS.
(c): LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX IS AN UNMANAGED INDEX WHICH
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.
LOOMIS SAYLES INVESTMENT TRUST 14
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES PROVIDENT FUND
-------------------------------------------------------------------------------
The Loomis Sayles Provident Fund attempts to achieve long-term growth of
capital. For the six-month period ended March 31, 2000, the Fund had a total
return of 22.31%, as compared to the Fund's benchmark, the S&P 500 Index total
return of 17.51%. For the same period, the average large-cap core funds, as
measured by Lipper Analytical Services, had a total return of 21.66%
The fourth quarter of 1999 began with a continuation of the same trends that
made the third quarter so difficult with the strengthening world economy and
the huge trade deficit putting the dollar, the bond market, and the stock
market under pressure. Our strategy of reduced exposure to very highly valued
technology stocks and an above normal position in cash was looking good. All
this changed on Monday, October 18th, when the Commerce Department reported
the August trade deficit at $24.1 billion versus a consensus expectation of
$25.0 billion, flat with the July number. This launched a powerful rally in
the bond market and a technology driven run in the stock market. A week later
a less robust than expected September durable goods orders and a Labor
Department report showing almost no growth in wages fueled further gains in
both the bond and the stock markets. Although the bond market rally lasted
only a month and has since far more than retraced itself, stocks continued to
set new highs for the remainder of the year.
This year the first quarter began with an abrupt reversal of the pattern of
strength in technology stocks and weakness in nearly everything else which
characterized the fourth quarter from mid-October on. From a fundamental
perspective this shift made sense. Valuations of technology stocks had
reached levels that were all but impossible to rationalize while the
gathering strength of the world economy and the success of OPEC in
stabilizing oil prices made other sectors more attractive. However, this new
pattern did not prevail for very long into January. As 401(k) plan
participants and defined benefit plan sponsors shifted assets from more
diversified and/or value oriented managers to technology sector funds and
growth managers with a heavy emphasis on technology, the market reverted to
its earlier pattern with technology once again the unchallenged leader.
By beginning the quarter with a slightly greater than market weighting of 32% in
technology, cutting back as that sector began to decline, and first reducing and
then rebuilding positions in the more cyclical sectors, we were able to keep the
Provident Fund ahead of this treacherous market. Several technology stocks
including Corning Glassworks, Analog Devices, Advanced Micro Services, and Ciena
were our best performers with two energy stocks - Baker Hughes and Vastar - also
doing well. Our weakest holdings were concentrated in the commodities sector,
and included International Paper, Unocal, Dow Chemical, and Praxair.
Looking ahead, I can only describe the current environment as being as complex
and confusing as I have ever dealt with in 35 years in this business. The
structural changes in our business plus the advent of internet trading and chat
rooms and the all day cable coverage of the market have created a momentum
driven market which causes moves both up and down in individual stocks and
sectors to an extreme never seen before. Further complicating the situation is
the fact that the market itself is now having an important impact on the
economy. Finally, the international economy, while in many respects much
improved, remains unstable with huge and rapidly growing U.S. current account
deficits being funded by vast funds flows from our trading partners into our
financial markets. In this environment agility seems to be the only defense.
This necessitates high turnover with moves in and out of the volatile and
dominant technology sector being a recurring event. I have also tended to run
larger than normal cash positions and to quite consistently hold a large
position in North American natural gas oriented stocks where the supply and
demand prospects seem truly compelling and still underappreciated.
QUENTIN FAULKER IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES PROVIDENT FUND.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
---------------------
Since
6 Months 1 Year 3 Years Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES PROVIDENT FUND 22.31 26.05 26.36 21.45
Lipper Large-Cap Core Funds Index(b) 20.91 19.27 26.50 23.32
S&P 500 Index(c) 17.51 17.94 27.40 25.39
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
[GRAPH]
Loomis Sayles Lipper Large-Cap
Provident Fund Core Funds Index S&P 500 Index
<S> <C> <C> <C>
10/1/95 $10,000 $10,000 $10,000
10/31/95 $9,800 $9,954 $9,964
11/30/95 $10,040 $10,342 $10,402
12/31/95 $10,042 $10,499 $10,602
1/31/96 $10,032 $10,808 $10,963
2/29/96 $10,213 $10,939 $11,065
3/31/96 $10,213 $11,039 $11,171
4/30/96 $10,443 $11,199 $11,336
5/31/96 $10,604 $11,423 $11,628
6/30/96 $10,533 $11,439 $11,672
7/31/96 $9,952 $10,972 $11,157
8/31/96 $10,283 $11,221 $11,392
9/30/96 $10,824 $11,803 $12,034
10/31/96 $11,085 $12,038 $12,365
11/30/96 $11,886 $12,818 $13,300
12/31/96 $11,609 $12,582 $13,036
1/31/97 $12,337 $13,270 $13,851
2/28/97 $12,236 $13,254 $13,959
3/31/97 $11,882 $12,686 $13,386
4/30/97 $12,408 $13,389 $14,185
5/31/97 $12,924 $14,201 $15,048
6/30/97 $13,136 $14,817 $15,724
7/31/97 $14,148 $15,988 $16,974
8/31/97 $13,511 $15,174 $16,023
9/30/97 $13,987 $15,955 $16,900
10/31/97 $13,532 $15,463 $16,336
11/30/97 $13,592 $15,968 $17,092
12/31/97 $13,430 $16,259 $17,386
1/31/98 $13,649 $16,419 $17,578
2/28/98 $14,656 $17,583 $18,846
3/31/98 $15,390 $18,452 $19,811
4/30/98 $15,697 $18,639 $20,010
5/31/98 $15,248 $18,321 $19,666
6/30/98 $15,719 $19,191 $20,465
7/31/98 $15,839 $19,036 $20,247
8/31/98 $13,528 $16,187 $17,324
9/30/98 $14,886 $16,992 $18,429
10/31/98 $15,511 $18,266 $19,929
11/30/98 $16,256 $19,353 $21,137
12/31/98 $18,026 $20,638 $22,354
1/31/99 $18,623 $21,359 $23,289
2/28/99 $17,997 $20,700 $22,565
3/31/99 $19,017 $21,532 $23,469
4/30/99 $19,570 $22,109 $24,377
5/31/99 $19,279 $21,523 $23,801
6/30/99 $20,546 $22,724 $25,125
7/31/99 $20,444 $22,057 $24,338
8/31/99 $20,196 $21,832 $24,217
9/30/99 $19,599 $21,240 $23,553
10/31/99 $19,861 $22,542 $25,044
11/30/99 $19,992 $23,095 $25,558
12/31/99 $21,374 $24,631 $27,058
1/31/00 $20,736 $23,635 $25,698
2/29/00 $21,836 $23,627 $25,212
3/31/00 $23,971 $25,682 $27,678
</TABLE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Annualized
------------------------
Since
6 Months 1 Year 3 Years Registration(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES PROVIDENT FUND 22.31 26.05 26.36 23.94
Lipper Large-Cap Core Funds Index(b) 20.91 19.27 26.50 26.50
S&P 500 Index(c) 17.51 17.94 27.40 27.40
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
[GRAPH]
Loomis Sayles Lipper Large-Cap
Provident Fund Core Funds Index S&P 500 Index
<S> <C> <C> <C>
3/31/97 $10,000 $10,000 $10,000
4/30/97 $10,000 $10,554 $10,597
5/31/97 $10,415 $11,194 $11,242
6/30/97 $10,586 $11,680 $11,742
7/31/97 $11,403 $12,603 $12,681
8/31/97 $10,889 $11,961 $11,970
9/30/97 $11,272 $12,577 $12,626
10/31/97 $10,906 $12,189 $12,204
11/30/97 $10,954 $12,587 $12,769
12/31/97 $10,823 $12,816 $12,988
1/31/98 $11,000 $12,942 $13,132
2/28/98 $11,812 $13,860 $14,079
3/31/98 $12,404 $14,545 $14,800
4/30/98 $12,651 $14,693 $14,949
5/31/98 $12,289 $14,442 $14,692
6/30/98 $12,669 $15,128 $15,289
7/31/98 $12,766 $15,006 $15,126
8/31/98 $10,903 $12,760 $12,942
9/30/98 $11,998 $13,394 $13,768
10/31/98 $12,501 $14,399 $14,888
11/30/98 $13,101 $15,255 $15,791
12/31/98 $14,528 $16,268 $16,700
1/31/99 $15,009 $16,837 $17,398
2/28/99 $14,505 $16,317 $16,858
3/31/99 $15,326 $16,973 $17,533
4/30/99 $15,772 $17,428 $18,211
5/31/99 $15,537 $16,966 $17,781
6/30/99 $16,558 $17,912 $18,770
7/31/99 $16,476 $17,387 $18,182
8/31/99 $16,276 $17,209 $18,092
9/30/99 $15,795 $16,743 $17,596
10/31/99 $16,007 $17,769 $18,709
11/30/99 $16,112 $18,205 $19,094
12/31/99 $17,225 $19,416 $20,214
1/31/00 $16,711 $18,631 $19,198
2/29/00 $17,598 $18,625 $18,835
3/31/00 $19,319 $20,244 $20,677
</TABLE>
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. IT IS NOT
POSSIBLE TO INVEST IN AN INDEX.
(a): INCEPTION DATE OF THE LOOMIS SAYLES PROVIDENT 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 LARGE CAP CORE FUNDS INDEX &
S&P 500 INDEX PERFORMANCE DATA IS NOT AVAILABLE COINCIDENT WITH THE
REGISTRATION DATE, COMPARATIVE PERFORMANCE IS PRESENTED FROM MARCH 31,
1997.
(b): DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS BEEN CHANGED FROM GROWTH FUNDS TO LARGE CAP CORE FUNDS. THE
LIPPER LARGE-CAP CORE FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED INDEX OF
TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE LARGE-CAP CORE FUNDS
INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF CAPITAL
GAINS DISTRIBUTIONS AND INCOME DIVIDENDS.
(c): S&P 500 INDEX IS A CAPITALIZATION-WEIGHTED, TOTAL RETURN UNMANAGED 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.
LOOMIS SAYLES INVESTMENT TRUST 16
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES SMALL COMPANY GROWTH FUND
-------------------------------------------------------------------------------
The Loomis Sayles Small Company Growth Fund attempts to achieve long-term
capital growth by investing in the shares of smaller companies experiencing
rapid growth. For the six-month period ended March 31, 2000, the Fund had a
total return of 83.29%, as compared to the Fund's benchmark, Russell 2000 Growth
Index, total return of 45.77%. For the same period, the average small-cap growth
fund, as measured by Lipper Inc., had a total return of 65.68%. We attribute
this strong absolute and relative performance to two key factors, the Fund's
significant position in technology stocks and favorable stock selection.
The Fund remained fully invested with less than 5% cash throughout the period.
As you know, this is our normal practice in good times or bad. Rather than
trying to "time the market", we focus on trying to build and manage the
portfolio from the bottom up, investing in the strongest small cap growth
companies we can find. We expect to maintain this strategy in the coming months
despite the increasing market volatility.
The past six months was a period of strong performance for small cap stocks
particularly the shares of growth companies. Investors became enamored with
technology stocks in part because the near term fundamentals were, and still
are, very strong and in part due to the long-term growth potential the Internet
represents for these companies. Several of the Fund's technology holdings gained
more than 100%. Kopin Corp., a manufacturer of miniature electronic displays and
specialty semiconductor wafers, gained 395.5% from September 30, 1999 to March
31, 2000.
The advance was not just traditional technology but biotechnology as well. In
the last several months tremendous progress has been made in mapping the human
genome. Genomics holds great promise in medicine. There are a number of
companies focused on developing new treatments utilizing gene therapy. As this
progress became more apparent in the fall of 1999, investors started to focus on
the opportunities these companies presented. Genelogic, a supplier of genomics
data used in drug discovery by pharmaceutical companies, advanced 178.5% after
our initial purchase in early December.
The level of returns of the past six months experienced by the Fund as well
as other investors was unprecedented. Clearly, despite all the good
fundamental news, stocks could not keep rising indefinitely without some kind
of adjustment. As of the writing of this letter in mid-April, we remain in
the midst of a significant market correction. The valuations of small and mid
cap growth stocks have been hit the hardest. The volatility we have
experienced since early March has been significantly higher than the norm. It
is our view that this correction and the associated volatility may continue
for some time. There is a silver lining to this correction, however. First,
it was very clear that valuations had reached unsustainable levels by early
March. The process of bringing those valuations to more reasonable levels is
well underway. Second, corrections provide us the opportunity to invest in
stocks that were either too big or too expensive prior to the correction.
This process of upgrading is now underway and will continue as opportunities
develop. Finally, we are mindful of the fact that economic growth remains
robust and the likelihood of further Federal Reserve Board moves to raise
interest rates remains high. However, we also believe that economic growth
has begun slowly to more reasonable levels, that the Federal Reserve Board
will complete its interest rate moves probably in the first half of the year,
and that as a result, the environment for equities should remain positive for
at least the balance of 2000.
CHRISTOPHER R. ELY, PHILIP C. FINE AND DAVID L. SMITH ARE THE
PORTFOLIO MANAGERS FOR THE LOOMIS SAYLES SMALL COMPANY GROWTH FUND.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Since
6 Months Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LOOMIS SAYLES SMALL COMPANY GROWTH FUND 83.29 113.90
Lipper Small-Cap Growth Funds Index(b) 68.86 88.01
Russell 2000 Growth Index(c) 45.77 45.91
Russell 2000 Index(c) 26.83 24.19
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
[GRAPH]
Russell Russell Loomis Sayles Lipper
2000 2000 Small Company Small-Cap Growth
Index Growth Index Growth Fund Funds Index
<S> <C> <C> <C> <C>
5/31/99 $10,000 $10,000 $10,000 $10,000
6/30/99 $10,452 $10,527 $11,320 $10,936
7/30/99 $10,165 $10,201 $10,910 $10,897
8/31/99 $9,789 $9,820 $11,050 $10,745
9/30/99 $9,791 $10,009 $11,670 $11,134
10/31/99 $9,831 $10,265 $13,170 $11,783
11/30/99 $10,418 $11,351 $14,460 $13,270
12/31/99 $11,597 $13,351 $17,770 $15,946
1/31/00 $11,411 $13,227 $17,940 $15,780
2/29/00 $13,295 $16,305 $24,560 $20,403
3/31/00 $12,419 $14,591 $21,390 $18,801
</TABLE>
The Fund's strong performance was attributable to unusually favorable
conditions that are not likely to be sustainable, including strong weightings in
the technology and consumer sectors, and investments in initial public
offerings (IPOs).
Foreign investments involve special risks, including greater economic,
political and currency fluctuation risks, which may be even greater in
emerging markets. In addition, foreign countries may have different
accounting standards than those of the U.S., which may adversely affect the
value of the Fund. Small and mid-cap stocks may be more volatile and subject
to wider value fluctuations than larger, more established companies. The
secondary market of small and mid-cap stocks may be less liquid, or harder to
sell, which could also adversely impact the Fund's value.
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. IT IS NOT
POSSIBLE TO INVEST IN AN INDEX.
(a): INCEPTION DATE OF THE LOOMIS SAYLES SMALL COMPANY GROWTH FUND IS MAY 7,
1999. SINCE LIPPER SMALL CAP FUNDS INDEX, RUSSELL 2000 GROWTH INDEX AND
RUSSELL 2000 INDEX PERFORMANCE DATA IS NOT AVAILABLE COINCIDENT WITH THE
INCEPTION DATE, COMPARATIVE PERFORMANCE IS PRESENTED FROM MAY 31, 1999.
(b): DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS BEEN CHANGED FROM SMALL-CAP FUNDS TO SMALL-CAP GROWTH FUNDS.
THE LIPPER SMALL CAP GROWTH FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED
INDEX OF TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE SMALL CAP GROWTH
FUNDS INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF
CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS.
(c): THE FUND CHANGED ITS BENCHMARK INDEX DURING THE PERIOD ENDED MARCH 31, 2000
FROM THE RUSSELL 2000 INDEX TO THE RUSSELL 2000 GROWTH INDEX, WHICH IS AN
UNMANAGED INDEX COMPRISING OF THOSE RUSSELL 2000 SECURITIES WITH A GREATER
THAN AVERAGE GROWTH ORIENTATION. THE RUSSELL 2000 GROWTH INDEX BETTER
REPRESENTS THE INVESTMENT STRATEGY OF THE FUND. THE INDEX RETURNS HAVE NOT
BEEN LOWERED FOR ONGOING MANAGEMENT AND OPERATING EXPENSES APPLICABLE TO
MUTUAL FUND INVESTMENTS.
LOOMIS SAYLES INVESTMENT TRUST 18
<PAGE>
FUND AND MANAGER REVIEW
LOOMIS SAYLES SMALL COMPANY VALUE FUND
-------------------------------------------------------------------------------
The Loomis Sayles Small Company Value Fund attempts to achieve long-term
capital growth. For the six-month period ended March 31, 2000, the Fund had a
total return of 17.97% as compared to the Fund's benchmark, Russell 2000
Index, total return of 26.83%. For the same period, the average small-cap
value fund, as measured by Lipper Analytical Services, had a total return of
12.87%. The Fund's underperformance against the Russell 2000 for the past six
months is almost entirely due to the huge disparity of returns between growth
and value style investing during this period. Since September 30 1999, the
Russell 2000 Growth component has returned 45.77%, compared to 5.41% for the
Russell 2000 Value Index. In particular, our valuation discipline resulted in
the Fund being underweight in the technology and healthcare sectors, which
until late in the first quarter of this year had afforded unprecedented
returns in a short period of time.
The past six months have been a period of great volatility and rapid and extreme
changes in sentiment for equity investors. They began with growth oriented
issues, notably evidenced by the technology sector and biotechnology industry,
out-performing the broader market by a wide margin. However, this long-standing
pattern, which was particularly pronounced in the fourth quarter of 1999,
shifted dramatically in March of this year as a sharp correction ensued in many
of the market's leadership groups. The correction began in the biotechnology
sector and ultimately encompassed a majority of what had been the highflying
technology groups, with declines reaching as much as 50% for a wide range of
individual stocks and industries. Coincidental with the sell-off in growth, a
number of "old economy" industries rallied, in some cases sharply. The net
effect was that for the first time in months, value-style investing returns in
March significantly exceed growth returns in the small-cap arena.
During this period we have not changed our overall investment strategy. We have
modestly re-positioned the portfolio over the past six months to give
recognition to the dynamic forces in the economy and the market that have been
driving results. In this regard, we added late last year to the portfolio's
weight in technology and healthcare. However, we have done so while remaining
focused on the consistent application of our long-standing disciplined value
strategy. The portfolio ended the first quarter at a greater than 20% discount
price-earnings ratio versus the Russell 2000. We have also maintained and
improved upon the fundamental character of the portfolio. Finally, we have
modestly reduced the number of holdings in an effort to more meaningfully
emphasize the most attractive stocks.
During the past six months the best performing sectors were technology and
healthcare. On a relative basis, the best performing sectors were energy and
materials and processing. The Fund is broadly diversified across all of the
Russell economic sectors.
As we move into the second quarter, we are optimistic that the vast performance
disparity between value and growth-style investing will continue to narrow. In
an uncertain market environment and over the long term, we believe investors
will migrate toward companies with solid growth prospects, tangible earnings and
cash flow, and more reasonable valuation metrics. In addition, after a long
period of underperformance, small-cap stocks appear poised for better returns
given the attractive valuation of the sector and solid earnings potential for
smaller companies in the coming year. In this regard, we believe the portfolio
is well positioned on all counts.
DAWN ALSTON-PAIGE AND JOSEPH GATZ ARE THE PORTFOLIO MANAGERS FOR THE LOOMIS
SAYLES SMALL COMPANY VALUE FUND.
<PAGE>
<TABLE>
<CAPTION>
AVERAGE RETURNS (%)-PERIOD ENDED MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
Since
6 Months Inception(a)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LOOMIS SAYLES SMALL COMPANY VALUE FUND 17.97 10.89
Lipper Small-Cap Value Funds Index(b) 7.94 -0.25
Russell 2000 Index(c) 26.83 18.81
</TABLE>
<TABLE>
<CAPTION>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO MARCH 31, 2000
---------------------------------------------------------------------------------------------------------------------------
[GRAPH]
Russell Loomis Sayles Lipper
2000 Small Company Small-Cap Value
Index Value Fund Funds Index
<S> <C> <C> <C>
6/30/99 $10,000 $10,000 $10,000
7/31/99 $9,726 $9,900 $9,890
8/31/99 $9,366 $9,610 $9,483
9/30/99 $9,368 $9,400 $9,241
10/31/99 $9,406 $9,320 $8,989
11/30/99 $9,967 $9,720 $9,217
12/31/99 $11,095 $10,113 $9,628
1/31/00 $10,917 $9,853 $9,261
2/29/00 $12,720 $10,611 $9,530
3/31/00 $11,881 $11,089 $9,975
</TABLE>
Foreign investments involve special risks including greater economic, political
and currency fluctuation risks, which may be even greater in emerging markets.
In addition, foreign countries may have different accounting standards than
those of the U.S., which may adversely affect the value of the Fund. Small and
mid-cap stocks may be more volatile and subject to wider value fluctuations than
larger, more established companies. The secondary market of small and mid-cap
stocks may be less liquid, or harder to sell, which could also adversely impact
the Fund's value.
NOTE: PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. IT IS NOT
POSSIBLE TO INVEST IN AN INDEX.
(a): INCEPTION DATE OF THE LOOMIS SAYLES SMALL COMPANY VALUE FUND IS JUNE 30,
1999.
(b): DUE TO CHANGES IN THE WAY LIPPER DEFINES ITS CATEGORIES, THE LIPPER
CATEGORY HAS BEEN CHANGED FROM SMALL-CAP FUNDS TO SMALL-CAP VALUE FUNDS.
THE LIPPER SMALL-CAP VALUE FUNDS INDEX IS AN EQUALLY WEIGHTED UNMANAGED
INDEX OF TYPICALLY THE 30 LARGEST MUTUAL FUNDS WITHIN THE SMALL-CAP VALUE
FUNDS INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR THE REINVESTMENT OF
CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS.
(c): RUSSELL 2000 INDEX IS AN UNMANAGED INDEX COMPRISING OF THE 2,000 SMALLEST
COMPANIES IN THE RUSSELL 3000 INDEX (A BROAD MARKET INDEX), REPRESENTING
APPROXIMATELY 8% OF THE RUSSELL 3000 INDEX TOTAL MARKET CAPITALIZATION. THE
INDEX RETURNS HAVE NOT BEEN REDUCED FOR ONGOING, MANAGEMENT AND OPERATING
EXPENSES APPLICABLE TO MUTUAL FUND INVESTMENTS.
LOOMIS SAYLES INVESTMENT TRUST 20
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
----------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES-97.0% OF NET ASSETS
California Educational Facilities Authority Revenue,
6.000%, 2/15/17 $600,000 $ 611,304
California Health Facilities Authority Revenue,
Series A, (MBIA Insured), 5.550%, 8/15/25 300,000 289,704
California Housing Finance Agency, (MBIA Insured),
5.500%, 8/01/17 500,000 489,945
California Pollution Control, 5.000%, 4/01/08 425,000 417,877
California State General Obligations, 5.500%, 6/01/01 500,000 507,340
California State General Obligations, 5.750%, 3/01/13 505,000 522,594
California State General Obligations, (MBIA Insured),
6.000%, 10/01/14 (Prerefunded 10/1/02 @ 102) 240,000 253,265
California State General Obligations, (MBIA Insured),
6.000%, 10/01/14 10,000 10,332
California State Public Works Board, Community College,
5.200%, 3/01/06 200,000 205,156
California State Public Works Board, Community College,
5.200%, 4/01/07 500,000 512,920
California State Public Works Lease, 5.400%, 4/01/04 200,000 205,770
California State Water Resources Development, 5.000%,
3/01/01 (Prerefunded 6/15/00 @ 102) 200,000 202,466
California Statewide Community Development, St. Joseph
Health Systems, 4.750%, 7/01/16 500,000 441,750
East Bay California Municipal Utility Water Systems,
6.000%, 6/01/12 500,000 521,665
Fresno, California, Unified School District, Series D
(FSA Insured), 5.125%, 8/01/18 500,000 479,530
Industry, California, (MBIA insured), 5.700%, 7/01/18 290,000 294,892
Los Angeles State Building Authority, Lease Revenue,
5.375%, 5/01/06 300,000 310,686
Los Angeles, California, Electric Plant Revenue,
Department of Water & Power, 6.000%, 6/01/13 500,000 514,440
Los Angeles, California, Water and Power Waterworks
Revenue, (Department of Water & Power),
6.500%, 11/01/10 350,000 366,422
Northern California Power Agency, Public Revenue,
5.250%, 7/01/02 250,000 252,500
Riverside, California, Electric Revenue, (MBIA Insured),
5.200%, 10/01/08 230,000 234,773
Sacramento, California, Municipal Utility District,
5.250%, 5/15/04 250,000 254,947
Sacramento, California, Municipal Utility District,
5.700%, 5/15/12 500,000 509,315
Sacramento, California, Power Authority, 6.000%,
7/01/02 500,000 511,270
San Diego, California, Open Space Park Facility,
District One, 5.750%, 1/01/08 250,000 260,273
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
----------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES-CONTINUED
San Francisco Bay Area Rapid Transit Authority,
(FGIC Insured), 5.450%, 7/01/08 $200,000 $ 207,326
San Francisco, California, City & County International
Airport Revenue, (AMBAC Insured), 6.200%, 5/01/04
(Prerefunded 5/01/02 @ 102) 120,000 126,545
San Francisco, California, City & County International
Airport Revenue, (AMBAC Insured), 6.200%, 5/01/04 180,000 189,522
San Francisco, California, City & County Library
Facilities, Series D, 6.100%, 6/15/07
(Prerefunded 6/15/00 @ 102) 150,000 153,648
San Francisco, California, City & County Public Utility
Water Revenue, Series A, 6.375%, 11/01/06 500,000 529,925
San Francisco, California, City & County Redevelopment
Project, Series B, 5.200%, 8/01/08
(Prerefunded 8/01/03 @ 100) 250,000 255,328
San Francisco, California, Public Utilities,
6.000%, 11/01/15 500,000 506,850
San Francisco, California, Sewer Revenue,
(AMBAC Insured), 6.000%, 10/01/11 500,000 523,765
San Francisco, California, State Building Authority,
5.125%, 10/01/07 250,000 255,695
San Jose, California, Airport Revenue, (FGIC Insured),
5.875%, 3/01/07 200,000 214,070
Santa Clara, California, Electric Revenue, (MBIA Insured),
6.250%, 7/01/13 (Prerefunded 7/01/01 @ 102) 250,000 260,947
Southern California, Public Power Transmision Revenue,
5.250%, 7/01/10 500,000 514,105
Turlock, California, Irrigation District Revenue,
(MBIA Insured), 5.750%, 1/01/18 500,000 501,610
University of California Revenue, Series B, 5.800%,
9/01/07 (Prerefunded 9/1/03 @ 102) 415,000 439,647
University of California Revenue, Series B, 6.500%, 9/01/03 300,000 317,181
University of California Revenue, Series C, (AMBAC Insured),
4.700%, 9/01/06 200,000 201,166
------------
TOTAL MUNICIPAL BONDS AND NOTES
(Identified Cost $14,450,308) 14,378,466
------------
</TABLE>
22
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
-----------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-1.6% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co.,
dated 3/31/00 at 4.750% to be repurchased at $239,095 on
4/03/00 collateralized by $200,000 U.S Treasury Bond, 8.000%
due 11/15/21 with a value of $247,647 $ 239,000 $ 239,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $239,000) 239,000
------------
TOTAL INVESTMENTS--98.6%
(IDENTIFIED COST $14,689,308) @ 14,617,466
Cash and Other Assets, Less Liabilities--1.4% 201,021
------------
NET ASSETS--100% $ 14,818,487
============
</TABLE>
x See Note 1.
@ At March 31, 2000, the net unrealized depreciation on investments based on
cost of $14,689,308 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 $158,991 and $230,833, respectively, resulting in net
unrealized depreciation of $71,842.
KEY TO ABBREVIATIONS:
AMBAC: American Municipal Bond Assurance Corporation
FGIC: Federal Guaranty Insurance Corporation
FSA: Financial Security Assurance
MBIA: Municipal Bond Insurance Association
Ten Largest Holdings by Municipal Classification at March 31, 2000
as a Percentage of Net Assets
General Obligations 22.3%
Utilities 20.7%
Education 15.4%
Revenue 11.7%
Water & Sewer 10.5%
Public Works 6.5%
Health Care - Services 4.9%
Air Transport 2.1%
Auto & Related 1.5%
Transportation & Highway 1.4%
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
----------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-98.1% OF NET ASSETS
BANKS/SAVINGS & LOANS--5.7%
Banc One Corp., 8.000%, 4/29/27 $ 550,000 $ 551,221
First America Bank Corp., 7.750%, 7/15/04 150,000 151,405
Standard Federal Bank, 7.750%, 7/17/06 450,000 455,463
------------
1,158,089
------------
BROADCASTING--1.2%
Adelphia Communications Corp., 9.375%, 11/15/09 250,000 233,750
------------
CHEMICALS--1.2%
Lyondell Chemical Co., 10.875%, 5/01/09 250,000 234,375
------------
COMPUTER HARDWARE--1.7%
Seagate Technology, Inc., 7.125%, 3/01/04 122,000 117,041
Seagate Technology, Inc., 7.370%, 3/01/07 265,000 230,462
------------
347,503
------------
ENTERTAINMENT--2.9%
Time Warner Entertainment Co., 7.250%, 9/01/08 600,000 586,050
------------
FINANCIAL SERVICES--9.3%
Duke Capital Corp., 8.000%, 10/01/19 600,000 605,163
EQCC Home Equity Loan Trust, Class A, 6.347%, 8/25/22 1,000,000 973,780
Household Finance Corp., 7.200%, 7/15/06 300,000 292,487
------------
1,871,430
------------
FOREIGN GOVERNMENT/AGENCY--2.8%
United Mexican States, 11.500%, 5/15/26 450,000 559,350
------------
FOREIGN ISSUER--2.6%
Philips Electronics NV, 8.375%, 9/15/06 515,000 522,576
------------
FOREST & PAPER PRODUCTS--2.1%
Boise Cascade Corp., 9.800%, 4/15/03 200,000 207,498
Boise Cascade Corp., 9.980%, 3/27/03 200,000 208,330
------------
415,828
------------
GOVERNMENT AGENCIES--8.3%
Federal Home Loan Mortgage Corp., 5.500%, 5/15/02 400,000 388,624
Federal National Mortgage Association, 5.625%, 5/14/04 1,050,000 995,694
Federal National Mortgage Association, 6.375%, 6/15/09 300,000 283,875
------------
1,668,193
------------
MORTGAGE RELATED--26.0%
Comed Transitional Funding Trust, Class A, 5.630%, 6/25/09 440,000 403,287
Federal Home Loan Mortgage Corp., 6.000%, 11/01/13 664,676 626,244
Federal Home Loan Mortgage Corp., 6.500%, 1/01/27 96,137 90,699
Federal Home Loan Mortgage Corp., 8.000%, 7/01/25 18,628 18,733
Federal Home Loan Mortgage Corp., 8.000%, 12/01/26 42,722 42,935
Federal National Mortgage Association, 6.000%, 2/01/29 949,540 864,670
Federal National Mortgage Association, 7.000%, 12/01/11 569,340 559,195
Federal National Mortgage Association, 7.500%, 1/01/27 98,448 97,002
Federal National Mortgage Association, 8.000%, 3/01/30 500,000 501,405
</TABLE>
24
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CORE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
----------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
MORTGAGE RELATED--CONTINUED
Government National Mortgage Association, 6.500%, 4/15/26 $ 108,101 $ 102,459
Government National Mortgage Association, 6.500%, 9/15/28 651,263 614,629
Government National Mortgage Association, 8.500%, 4/15/23 56,019 57,577
Government National Mortgage Association, 8.500%, 4/15/30 750,000 769,447
Government National Mortgage Association, 9.500%, 9/15/20 71,833 76,026
Residential Funding Mortgage, Inc., 6.750%, 12/25/14 442,661 425,751
------------
5,250,059
------------
NATURAL GAS--3.0%
Columbia Gas Systems, Inc., 7.050%, 11/28/07 675,000 614,466
------------
OIL & GAS--3.9%
Ensco International, Inc., 6.750%, 11/15/07 350,000 326,354
Union Oil Co., 7.500%, 2/15/29 500,000 464,595
------------
790,949
------------
REAL ESTATE INVESTMENT TRUSTS--2.2%
Developers Diversified Realty Corp., 6.800%, 7/23/02 125,000 120,949
Host Marriott Corp., Series B, 7.875%, 8/01/08 250,000 208,750
Meditrust Corp., 7.375%, 7/15/00 125,000 122,500
------------
452,199
------------
SECURITIES--5.8%
Lehman Brothers Holdings, Inc., 6.125%, 7/15/03 495,000 473,057
Lehman Brothers Holdings, Inc., 7.250%, 4/15/03 150,000 148,204
Morgan Stanley Dean Witter & Co., 7.125%, 1/15/03 550,000 546,387
------------
1,167,648
------------
TELECOMMUNICATIONS--2.3%
RCN Corp., 10.125%, 1/15/10 250,000 225,000
Williams Communications Group, Inc., 10.875%, 10/01/09 250,000 246,250
------------
471,250
------------
TRANSPORTATION--2.1%
Union Pacific Corp., 6.625%, 2/01/08 200,000 186,156
Union Pacific Corp., 6.700%, 12/01/06 260,000 244,988
------------
431,144
------------
U.S. GOVERNMENT--4.3%
U.S. Treasury Bonds, 6.250%, 8/15/23 100,000 101,422
U.S. Treasury Notes, 6.250%, 2/15/07 250,000 249,452
U.S. Treasury Notes, 7.250%, 8/15/04 490,000 505,925
------------
856,799
------------
UTILITIES--10.7%
Boston Edison Co., 6.800%, 3/15/03 400,000 392,500
Boston Edison Co., 7.800%, 5/15/10 300,000 302,562
Commonwealth Edison Co., 7.375%, 1/15/04 586,000 577,386
Gulf States Utilities Co., 6.410%, 8/01/01 435,000 427,157
MidAmerican Energy Holdings Co., 6.375%, 6/15/06 500,000 466,005
------------
2,165,610
------------
TOTAL BONDS AND NOTES
(Identified Cost $20,453,312) 19,797,268
------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CORE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
----------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-6.8% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co.,
dated 3/31/00 at 4.750% to be repurchased at $1,377,545 on
4/03/00 collateralized by $1,135,000 U.S. Treasury Bond,
8.000% due 11/15/21 with a value of $1,405,397 $1,377,000 $ 1,377,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $1,377,000) 1,377,000
------------
Total Investments--104.9%
(IDENTIFIED COST $21,830,312) @ 21,174,268
Liabilities, Less Cash and Other Assets--(4.9%) (996,939)
------------
NET ASSETS--100% $ 20,177,329
============
</TABLE>
x See Note 1.
@ At March 31, 2000, the net unrealized depreciation on investments based on
cost of $21,830,312 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 $55,903 and $711,947, respectively, resulting in net
unrealized depreciation of $656,044.
See accompanying notes to financial statements.
26
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-94.5% OF NET ASSETS
NON-CONVERTIBLE BONDS-77.7%
AEROSPACE/DEFENSE--2.6%
Lockheed Martin Corp., 7.750%, 5/01/26 USD 4,000,000 $ 3,734,640
Raytheon Co., 6.400%, 12/15/18 975,000 806,130
Raytheon Co., 6.750%, 3/15/18 5,000,000 4,326,050
Raytheon Co., 7.000%, 11/01/28 1,500,000 1,291,485
-----------
10,158,305
-----------
AIRLINES--0.5%
Delta Air Lines, Inc., 8.300%, 12/15/29 2,000,000 1,821,340
-----------
AUTO & RELATED--1.4%
Delphi Automotive Systems Corp., 7.125%, 5/01/29 1,000,000 864,010
Exide Corp., 10.000%, 4/15/05 225,000 217,125
Ford Motor Co., 6.625%, 10/01/28 3,650,000 3,209,773
TRW, Inc., 6.650%, 1/15/28 1,000,000 805,600
TRW, Inc., 7.750%, 6/01/29 435,000 402,689
-----------
5,499,197
-----------
BANKS/SAVINGS & LOANS--1.8%
First Union Corp., 7.500%, 4/15/35 270,000 270,977
Keycorp Capital II, 6.875%, 3/17/29 5,250,000 4,530,750
Keycorp Capital III, 7.750%, 7/15/29 2,500,000 2,303,450
-----------
7,105,177
-----------
BROADCASTING--0.6%
Fox Family Worldwide, Inc., Zero Coupon
Bond, 11/01/07 (step to 10.250% on 11/01/02) # 4,100,000 2,501,000
-----------
BUILDING MATERIALS--0.6%
Owens Corning, 7.500%, 8/01/18 3,000,000 2,510,460
-----------
CANADIAN--15.2%
Canadian Government, Zero Coupon Bond, 6/01/22 CAD 17,500,000 3,484,922
Canadian Government, Zero Coupon Bond, 6/01/25 71,460,000 12,509,871
Clearnet Communications, Inc., Zero Coupon Bond,
5/15/08 (step to 10.400% on 5/15/03) # 2,500,000 1,068,413
Hydro Quebec, Zero Coupon Bond, 8/15/20 7,500,000 1,398,621
New Brunswick FM Project, Zero Coupon Bond,
11/30/27 (step to 6.470% on 5/30/03) 144A # 1,250,000 692,512
Province of Alberta, 5.394%, 6/14/13 2,357,500 1,545,720
Province of Alberta, 5.930%, 9/16/16 1,513,648 1,024,179
Province of British Columbia, Zero Coupon Bond, 8/23/13 11,700,000 3,484,555
Province of British Columbia, Zero Coupon Bond, 9/05/20 8,250,000 1,604,677
Province of British Columbia, Zero Coupon Bond, 8/19/22 7,365,000 1,268,917
Province of British Columbia, Zero Coupon Bond, 9/08/23 3,300,000 532,777
Province of British Columbia, Zero Coupon Bond, 8/23/24 18,000,000 2,739,673
Province of British Columbia, Zero Coupon Bond, 11/19/27 8,150,000 1,023,448
Province of British Columbia, 5.700%, 6/18/29 4,300,000 2,712,609
Province of Manitoba, Zero Coupon Bond, 3/05/31 10,000,000 1,029,261
Province of Manitoba, 6.500%, 9/22/17 5,075,000 3,493,818
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
CANADIAN--CONTINUED
Province of Manitoba, 7.750%, 12/22/25 CAD 5,295,000 $ 4,291,952
Province of Newfoundland, 6.150%, 4/17/28 1,000,000 655,316
Province of Ontario, Zero Coupon Bond, 7/13/22 12,200,000 2,170,814
Province of Ontario, Zero Coupon Bond, 6/02/27 52,950,000 7,245,290
Province of Saskatchewan, Zero Coupon Bond, 4/10/14 5,000,000 1,438,980
Province of Saskatchewan, 5.750%, 3/05/29 1,460,000 934,098
Province of Saskatchewan (Certificate of Deposit), Zero
Coupon Bond, 2/04/22 13,500,000 2,380,262
Province of Saskatchewan (Certificate of Deposit), Zero
Coupon Bond, 5/30/25 4,375,000 626,960
-----------
59,357,645
-----------
COMMUNICATIONS--0.5%
Charter Communications Holdings, Zero Coupon
Bond, 4/01/11 (step to 9.920% on 4/04/04) # USD 3,500,000 1,925,000
-----------
COMPUTER HARDWARE--0.9%
Apple Computer, Inc., 6.500%, 2/15/04 1,325,000 1,189,188
Seagate Technology, Inc., 7.450%, 3/01/37 2,725,000 2,180,354
-----------
3,369,542
-----------
COMPUTER SERVICES--0.2%
Rhythms NetConnections, Inc., Series B, Zero Coupon
Bond, 5/15/08 (step to 13.50% on 5/15/03) # 1,800,000 882,000
-----------
ELECTRONIC COMPONENTS--0.2%
Westinghouse Electric Corp., 7.875%, 9/01/23 500,000 489,295
Zenith Electronics Corp., 8.190%, 11/01/09 541,000 194,760
-----------
684,055
-----------
ENTERTAINMENT--3.6%
Time Warner Entertainment Co., 6.875%, 6/15/18 2,840,000 2,581,276
Time Warner Entertainment Co., 6.950%, 1/15/28 6,650,000 5,936,654
Time Warner Entertainment Co., 7.570%, 2/01/24 1,625,000 1,562,698
Time Warner, Inc., 6.625%, 5/15/29 4,700,000 4,005,152
-----------
14,085,780
-----------
FINANCIAL SERVICES--1.9%
Merey Sweeny LP, 8.850%, 12/18/19 144A 875,000 861,201
Security Capital Group, Inc., 7.700%, 6/15/28 2,000,000 1,651,780
US West Capital Funding, Inc., 6.500%, 11/15/18 1,325,000 1,148,775
US West Capital Funding, Inc., 6.875%, 7/15/28 4,320,000 3,808,815
-----------
7,470,571
-----------
FOOD & BEVERAGE--1.4%
Borden, Inc., 7.875%, 2/15/23 1,500,000 1,198,860
ConAgra, Inc., 7.000%, 10/01/28 2,500,000 2,189,925
Pepsi Bottling Group, Inc., 7.000%, 3/01/29 2,250,000 2,033,500
-----------
5,422,285
-----------
</TABLE>
28
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
FOREIGN GOVERNMENT/AGENCY--6.1%
Escom, 11.000%, 6/01/08 ZAR 14,500,000 $ 1,852,599
Republic of Argentina, 6.000%, 3/31/23 USD 500,000 351,275
Republic of Argentina, 7.375%, 3/31/05++ 968,000 905,080
Republic of Argentina, 8.875%, 3/01/29 1,500,000 1,080,900
Republic of Brazil, 10.125%, 5/15/27 5,777,000 4,708,255
Republic of Brazil C Bond, 8.000%, 4/15/14 PIK 10,160,628 7,608,279
Republic of South Africa, 8.500%, 6/23/17 1,800,000 1,669,500
Republic of South Africa, 12.000%, 2/28/05 ZAR 10,500,000 1,520,590
Republic of South Africa, 12.500%, 12/21/06 4,000,000 574,626
Republic of South Africa, 13.500%, 9/15/15 7,500,000 1,100,997
Republic of Venezuela, 9.250%, 9/15/27 USD 3,750,000 2,475,000
-----------
23,847,101
-----------
FOREIGN ISSUER--11.1%
APP China Group Ltd., 14.000%, 3/15/10 2,900,000 2,508,500
Bangko Sentral Pilipinas, 8.600%, 6/15/27 2,300,000 1,828,072
Bangkok Bank Public Co. Ltd., 9.025%, 3/15/29 144A 3,400,000 2,677,500
Compania de Alimentos Fargo SA, 13.250%, 8/01/08 2,500,000 2,225,000
Embotelladora Andina SA, 7.625%, 10/01/27 1,300,000 1,115,552
Empresa Nacional de Electricidad SA (Endesa),
7.875%, 2/01/27 950,000 846,802
Hyundai Motor Co. Ltd., 7.600%, 7/15/07 144A 750,000 643,275
Indah Kiat Finance Mauritius Ltd., 10.000%, 7/01/07 750,000 525,000
Industrial Finance Corp. of Thailand, 7.375%,
1/14/07 144A 1,000,000 946,530
Korea Electric Power Corp., 6.750%, 8/01/27 500,000 470,195
Korea Electric Power Corp., 7.400%, 4/01/16 1,166,887 1,061,645
Multicanal SA, 10.500%, 4/15/18 500,000 420,000
Perez Companc SA, 8.125%, 7/15/07 144A 1,550,000 1,348,500
Petroleos Mexicanos, 8.625%, 12/01/23 144A 250,000 230,000
Petroleos Mexicanos, 9.250%, 3/30/18 650,000 632,125
Petroleos Mexicanos, 9.500%, 9/15/27 1,450,000 1,479,000
Philippine Long Distance Telephone Co., 8.350%, 3/06/17 400,000 311,032
Pindo Deli Finance Mauritius Ltd., 10.750%, 10/01/07 3,100,000 2,216,500
Pindo Deli Finance Mauritius Ltd., 10.875%, 10/01/27 3,250,000 1,917,500
Pindo Deli Finance Mauritius Ltd., 11.750%, 10/01/17 2,000,000 1,380,000
PTC International Finance BV, Zero Coupon Bond,
7/01/07 (step to 10.750% on 7/01/02) # 2,000,000 1,340,000
Quezon Power Philippines Co., 8.860%, 6/15/17 1,820,000 1,412,775
Samsung Electronics Co. Ltd., 7.700%, 10/01/27 144A 2,000,000 1,560,000
Siam Commercial Bank Public Co. Ltd., 7.500%,
3/15/06 144A 750,000 630,000
Southern Peru Ltd., 7.900%, 5/30/07 350,000 323,365
Tata Electric Co., 8.500%, 8/19/17 144A 3,150,000 2,781,639
Tenaga Nasional Berhad, 7.500%, 11/01/25 144A 2,500,000 2,120,420
Thai Farmers Bank Plc, 8.250%, 8/21/16 144A 3,000,000 2,362,500
Tjiwi Kimia Mauritius Ltd., 10.000%, 8/01/04 1,675,000 1,247,875
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
FOREIGN ISSUER--CONTINUED
Total Access Communication Public Co. Ltd., 7.625%,
11/04/01 144A USD 500,000 $ 450,000
Total Access Communication Public Co. Ltd., 8.375%,
11/04/06 144A 3,850,000 3,234,000
Transener SA, 9.250%, 4/01/08 144A 1,000,000 917,500
-----------
43,162,802
-----------
FOREST & PAPER PRODUCTS--2.0%
Georgia-Pacific Corp. (Timber Group), 7.250%, 6/01/28 500,000 441,415
Georgia-Pacific Group, 7.375%, 12/01/25 6,000,000 5,406,840
Georgia-Pacific Group, 7.750%, 11/15/29 2,000,000 1,872,840
-----------
7,721,095
-----------
GOVERNMENT AGENCIES--3.9%
Federal Home Loan Mortgage Corp., 6.000%, 6/01/26 1,620,172 1,490,040
Federal National Mortgage Association, Zero Coupon
Bond, 10/29/07 NZD 11,450,000 3,119,794
Federal National Mortgage Association, 6.000%,
7/01/29 USD 2,421,362 2,204,941
Federal National Mortgage Association, 6.250%,
5/15/29 8,850,000 7,978,806
Federal National Mortgage Association, 6.375%,
8/15/07 AUD 1,000,000 583,344
-----------
15,376,925
-----------
HEALTH CARE--PRODUCTS--0.3%
Bausch & Lomb, Inc., 7.125%, 8/01/28 USD 1,250,000 1,057,562
-----------
HEALTH CARE--SERVICES--0.8%
Columbia/HCA Healthcare Corp., 7.050%, 12/01/27 2,250,000 1,749,375
Columbia/HCA Healthcare Corp., 7.580%, 9/15/25 1,500,000 1,241,250
-----------
2,990,625
-----------
HOME BUILDERS--0.2%
Pulte Corp., 7.625%, 10/15/17 1,000,000 796,250
-----------
MEDIA & ENTERTAINMENT--0.2%
News America Holdings, Inc., 7.700%, 10/30/25 700,000 651,042
-----------
OIL & GAS--5.9%
Anadarko Petroleum Corp., 6.625%, 1/15/28 1,000,000 844,610
Chesapeake Energy Corp., 8.500%, 3/15/12 500,000 403,750
Chesapeake Energy Corp., Series B, 7.875%, 3/15/04 700,000 623,000
Global Marine, Inc., 7.000%, 6/01/28 1,000,000 861,100
Hvide Marine, Inc., 12.500%, 6/30/07 144A 500,000 450,000
Kerr-McGee Corp., 7.125%, 10/15/27 800,000 700,408
Pennzoil-Quaker State Co., 7.375%, 4/01/29 8,000,000 5,796,080
Pioneer Natural Resources Co., 6.500%, 1/15/08 1,000,000 861,260
Pioneer Natural Resources Co., 7.200%, 1/15/28 750,000 555,000
Seagull Energy Corp., 7.500%, 9/15/27 3,500,000 2,852,500
Tennessee Gas Pipeline Co., 7.000%, 10/15/28 1,750,000 1,549,607
</TABLE>
30
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
OIL & GAS--CONTINUED
Tosco Corp., 7.800%, 1/01/27 USD 3,400,000 $ 3,283,074
Union Pacific Resources Group, Inc., 7.050%, 5/15/18 500,000 448,300
Union Pacific Resources Group, Inc., 7.150%, 5/15/28 2,800,000 2,470,860
Union Pacific Resources Group, Inc., 7.950%, 4/15/29 1,000,000 953,480
Williams Companies, Inc., 7.625%, 7/15/19 500,000 475,580
-----------
23,128,609
-----------
OIL & GAS DRILLING EQUIPMENT--0.7%
R & B Falcon Corp., Series B, 7.375%, 4/15/18 3,500,000 2,677,500
-----------
RAIL--TRANSPORT--0.1%
Missouri Pacific Railroad Co., 5.000%, 1/01/45 500,000 255,000
-----------
REAL ESTATE INVESTMENT TRUSTS--4.0%
AMB Property Corp., 7.500%, 6/30/18 1,500,000 1,326,495
CarrAmerica Realty Corp., 6.875%, 3/01/08 500,000 451,800
First Industrial, 7.500%, 12/01/17 3,000,000 2,574,570
First Industrial, 7.600%, 7/15/28 6,000,000 5,074,320
ProLogis Trust, 7.100%, 4/15/08 3,400,000 3,144,014
Susa Partnership LP, 7.450%, 7/01/18 1,500,000 1,284,630
Susa Partnership LP, 7.500%, 12/01/27 1,750,000 1,457,330
Trinet Corporate Realty Trust, Inc., 7.700%, 7/15/17 500,000 355,705
-----------
15,668,864
-----------
RETAIL--GENERAL--0.9%
Dillon Read Structured Finance Corp., 7.430%, 8/15/18 1,000,000 847,190
Dillon Read Structured Finance Corp., 8.550%, 8/15/19 500,000 431,705
Dillon Read Structured Finance Corp., Series A, 6.660%,
8/15/10 187,956 167,433
J.C. Penney Co., Inc., 7.950%, 4/01/17 250,000 193,035
K Mart Corp., 7.950%, 2/01/23 1,250,000 1,126,050
Woolworth Corp., 8.500%, 1/15/22 1,000,000 627,500
-----------
3,392,913
-----------
STEEL--0.1%
Geneva Steel Co., 9.500%, 1/15/04 ^ 1,500,000 285,000
-----------
SUPRANATIONAL--2.8%
International Bank for Reconstruction & Development,
Zero Coupon Bond, 8/20/07 NZD 36,850,000 10,441,772
International Bank for Reconstruction & Development,
8.000%, 5/23/07 1,000,000 502,205
-----------
10,943,977
-----------
TAXABLE MUNICIPAL--0.2%
Orange County, California Pension Obligation, Zero
Coupon Bond, 9/01/16 USD 2,000,000 591,520
-----------
TELECOMMUNICATIONS--2.9%
Intermedia Communications, Inc., Zero Coupon Bond,
3/01/09 (step to 12.250% on 3/01/04) # 1,500,000 900,000
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
TELECOMMUNICATIONS--CONTINUED
Nextel Communications, Inc., Zero Coupon Bond,
10/31/07 (step to 9.750% on 10/31/02) # USD 1,725,000 $ 1,181,625
Nextel Communications, Inc., Zero Coupon Bond,
2/15/08 (step to 9.950% on 2/15/03) # 1,000,000 675,000
Nextel International, Inc., Zero Coupon Bond, 4/15/08
(step to 12.125% on 4/15/03) # 2,000,000 1,240,000
Nextlink Communications, Inc., Zero Coupon Bond,
4/15/08 (step to 9.450% on 4/15/03) # 1,500,000 885,000
RCN Corp., Zero Coupon Bond, 10/15/07 (step to
11.125% on 10/15/02) # 3,250,000 2,080,000
RCN Corp., Zero Coupon Bond, 2/15/08 (step to
9.800% on 2/15/03) # 3,350,000 1,993,250
RCN Corp., Zero Coupon Bond, 7/01/08 (step to
11.000% on 7/01/03) # 2,100,000 1,228,500
Teligent, Inc., Zero Coupon Bond, 3/01/08 (step to
11.500% on 3/01/03) # 2,500,000 1,325,000
-----------
11,508,375
-----------
TEXTILE & APPAREL--0.5%
Fruit of the Loom, Inc., 7.375%, 11/15/23 ^ 500,000 195,000
Kellwood Co., 7.625%, 10/15/17 2,000,000 1,768,640
Phillips Van Heusen Corp., 7.750%, 11/15/23 50,000 38,625
-----------
2,002,265
-----------
TOBACCO--1.7%
Philip Morris Cos., Inc., 7.750%, 1/15/27 8,150,000 6,730,922
-----------
TRANSPORTATION--0.2%
American President Cos. Ltd., 7.125%, 11/15/03 1,000,000 720,000
American President Cos. Ltd., 8.000%, 1/15/24 150,000 88,500
-----------
808,500
-----------
UTILITIES--1.6%
AES Corp., 8.875%, 11/01/27 1,000,000 770,000
Boston Edison Co., 7.800%, 3/15/23 500,000 468,998
KN Capital Trust, 7.630%, 4/15/28 1,000,000 885,538
KN Energy, Inc., 7.250%, 3/01/28 3,850,000 3,431,659
Texas-New Mexico Power Co., 6.250%, 1/15/09 1,000,000 847,330
-----------
6,403,525
-----------
WASTE MANAGEMENT--0.1%
USA Waste Services, Inc., 7.000%, 7/15/28 750,000 562,466
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $315,819,913) 303,355,195
-----------
</TABLE>
32
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
CONVERTIBLE BONDS-16.8%
AUTO & RELATED--0.9%
Exide Corp., 2.900%, 12/15/05 144A USD 2,159,000 $1,241,425
Magna International, Inc. Class A, 4.875%, 2/15/05 2,500,000 2,153,125
-----------
3,394,550
-----------
CANADIAN--0.1%
Rogers Communications, Inc., 2.000%, 11/26/05 250,000 255,625
-----------
COMPUTERS--0.7%
Cray Research, Inc., 6.125%, 2/01/11 463,000 280,115
HMT Technology Corp., 5.750%, 1/15/04 450,000 207,000
Hutchinson Technology, Inc., 6.000%, 3/15/05 850,000 657,688
Maxtor Corp., 5.750%, 3/01/12 507,000 354,900
Quantum Corp.--DLT & Storage Systems,
7.000%, 8/01/04 1,000,000 805,000
Silicon Graphics, Inc., 5.250%, 9/01/04 300,000 224,250
Western Digital, Zero Coupon Bond, 2/18/18 144A 1,250,000 240,625
-----------
2,769,578
-----------
DIVERSIFIED OPERATIONS--1.9%
Ogden Corp., 5.750%, 10/20/02 850,000 709,374
Thermo Electron Corp., 4.250%, 1/01/03 144A 7,200,000 6,552,000
-----------
7,261,374
-----------
ELECTRONIC COMPONENTS--0.9%
EDO Corp., 7.000%, 12/15/11 500,000 393,750
Kent Electronics Corp., 4.500%, 9/01/04 3,650,000 3,239,375
-----------
3,633,125
-----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--0.9%
Cirrus Logic, Inc., 6.000%, 12/15/03 200,000 180,000
Lam Research Corp., 5.000%, 9/01/02 1,275,000 2,143,594
Park Electrochemical Corp., 5.500%, 3/01/06 1,400,000 1,156,750
Richardson Electronics Ltd., 7.250%, 12/15/06 300,000 221,250
-----------
3,701,594
-----------
ENVIRONMENTAL SERVICES--0.5%
Thermo TerraTech, Inc., 4.625%, 5/01/03 600,000 531,000
Thermo TerraTech, Inc., 4.625%, 5/01/03 144A 1,500,000 1,327,500
-----------
1,858,500
-----------
FINANCIAL SERVICES--0.7%
Bell Atlantic Financial Services, 5.750%, 4/01/03 2,100,000 2,138,115
Ford Motor Credit Co., 8.000%, 10/15/04 144A 500,000 502,850
-----------
2,640,965
-----------
FOREIGN ISSUER--2.0%
APP Finance VII Mauritius Ltd., Zero Coupon
Bond, 11/18/12 4,000,000 750,000
APP Finance VII Mauritius Ltd., 3.500%, 4/30/03 875,000 689,062
Bangkok Bank Public Co. Ltd., 4.589%, 3/03/04 1,975,000 1,066,500
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
FOREIGN ISSUER--CONTINUED
Banpu Public Co., 2.750%, 4/10/03 USD 1,455,000 $ 1,556,850
Burns, Philp, 5.500%, 4/30/04 1,000,000 600,000
Empresas ICA Sociedad, 5.000%, 3/15/04 950,000 560,500
Loxley Public Co. Ltd., 2.500%, 4/04/01 700,000 203,000
Siam Commercial Bank Public Co. Ltd., 3.250%, 1/24/04 375,000 200,625
Ssangyong Oil Refining Co., Inc., 3.000%, 12/31/04 500,000 348,750
Ssangyong Oil Refining Co., Inc., 3.750%, 12/31/08 150,000 173,625
Telekom Malaysia Berhad, 4.000%, 10/03/04 500,000 456,250
Total Access Communication Public Co. Ltd., 2.000%,
5/31/06 900,000 1,012,500
-----------
7,617,662
-----------
FREIGHT TRANSPORTATION--0.0%
Worldway Corp., 6.250%, 4/15/11 225,000 182,250
-----------
HEALTH CARE--BIOTECHNOLOGY--0.1%
Human Genome Sciences, Inc., 3.750%, 3/15/07 144A 500,000 310,000
-----------
HEALTH CARE--DRUGS--0.7%
Dura Pharmaceuticals, Inc., 3.500%, 7/15/02 2,750,000 2,217,188
Glycomed, Inc., 7.500%, 1/01/03 300,000 276,222
NABI, Inc., 6.500%, 2/01/03 525,000 425,906
-----------
2,919,316
-----------
HEALTH CARE--PRODUCTS--0.1%
Centocor, Inc., 4.750%, 2/15/05 250,000 276,875
-----------
HEALTH CARE--SERVICES--0.3%
Healthsouth Corp., 3.250%, 4/01/03 1,280,000 992,000
Tenet Healthcare Corp., 6.000%, 12/01/05 250,000 207,500
-----------
1,199,500
-----------
HOME BUILDERS--0.1%
Lennar Corp., Zero Coupon Bond, 7/29/18 500,000 211,250
Schuler Homes, Inc., 6.500%, 1/15/03 400,000 328,000
-----------
539,250
-----------
INDUSTRIAL EQUIPMENT--0.1%
MascoTech, Inc., 4.500%, 12/15/03 500,000 369,375
-----------
INSURANCE--3.0%
Loews Corp., 3.125%, 9/15/07 13,275,000 11,864,531
-----------
MACHINERY--0.0%
Intevac, Inc., 6.500%, 3/01/04 150,000 76,500
-----------
MANUFACTURING--0.2%
Hexcel Corp., 7.000%, 8/01/03 500,000 342,500
Hexcel Corp., 7.000%, 8/01/11 750,000 480,000
-----------
822,500
-----------
MULTI-INDUSTRY--0.1%
Thermo Instrument Systems, Inc., 4.500%, 10/15/03 144A 500,000 457,500
-----------
</TABLE>
34
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
OFFICE EQUIPMENT--0.9%
Xerox Corp., 0.570%, 4/21/18 USD 6,750,000 $ 3,678,750
-----------
OIL & GAS--1.5%
Baker Hughes, Inc., Zero Coupon Bond, 5/05/08 6,100,000 4,544,500
Diamond Offshore Drilling, Inc., 3.750%, 2/15/07 500,000 582,500
Key Energy Group, Inc., 5.000%, 9/15/04 500,000 373,125
Noram Energy Corp., 6.000%, 3/15/12 250,000 211,875
-----------
5,712,000
-----------
PUBLISHING--0.1%
Scholastic Corp., 5.000%, 8/15/05 144A 600,000 573,750
-----------
REAL ESTATE INVESTMENT TRUSTS--0.6%
Federal Realty Investors Trust, 5.250%, 10/28/03 1,750,000 1,487,500
Rockefeller Properties, Zero Coupon Bond, 12/31/00 650,000 533,000
Sizeler Property Investors, Inc., 8.000%, 7/15/03 250,000 228,750
-----------
2,249,250
-----------
RESTAURANTS--0.1%
Einstein/Noah Bagel Corp., 7.250%, 6/01/04 750,000 300,000
-----------
TELECOMMUNICATIONS--0.2%
Broadband Technologies, Inc., 5.000%, 5/15/01 1,240,000 682,000
-----------
TEXTILE & APPAREL--0.1%
Dixie Yarns, Inc., 7.000%, 5/15/12 177,000 120,360
Fieldcrest Cannon, Inc., 6.000%, 3/15/12 295,000 67,850
-----------
188,210
-----------
TOTAL CONVERTIBLE BONDS
(Identified Cost $65,146,552) 65,534,530
-----------
TOTAL BONDS AND NOTES
(Identified Cost $380,966,465) 368,889,725
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS--0.1% OF NET ASSETS
OIL & GAS--0.1%
Hvide Marine, Inc.* 20,817 273,223
-----------
RESTAURANTS--0.0%
Advantica Restaurant Group, Inc. * 67,479 101,218
-----------
TOTAL COMMON STOCKS
(Identified Cost $2,021,871) 374,441
-----------
PREFERRED STOCKS--3.6% OF NET ASSETS
AEROSPACE/DEFENSE--0.2%
Coltec Capital Trust, 5.250% 17,500 636,563
-----------
AUTO & RELATED--0.1%
Federal-Mogul Financing Trust, 7.000% 15,000 435,000
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PREFERRED STOCKS-CONTINUED
BUILDING MATERIALS--0.6%
Owens Corning, 6.500% 70,000 $2,467,500
-----------
CHEMICALS--MAJOR--0.0%
E.I. du Pont DeNemours & Co., $3.50 300 15,900
-----------
CONTAINERS--0.0%
Owens-Illinois, Inc., 4.750% 4,000 108,250
-----------
OIL & GAS--0.7%
Chesapeake Energy Corp., 7.000% 5,000 186,250
EVI, Inc., Conv., 5.000% 53,500 2,588,062
-----------
2,774,312
-----------
REAL ESTATE INVESTMENT TRUSTS--1.1%
AMB Property Corp., 8.50% 16,300 359,619
CarrAmerica Realty Corp., Series B, 8.570% 35,000 665,000
Colonial PropertiesTrust, Series A , 8.750% 17,600 327,800
Developers Diversified Realty Corp. Class C, 8.375% 12,200 231,038
Developers Diversified Realty, 8.680% 5,300 103,681
Duke-Weeks Realty Corp., Series F, 8.000% 5,500 105,875
Equity Office Properties Trust, Series A, 8.980% 15,000 338,437
Equity Office Properties Trust, Series C, 8.625% 10,200 219,938
Equity Residential Properties Trust, 7.250% 28,000 553,000
Equity Residential Properties Trust, Series C, 9.125% 15,000 333,750
Equity Residential Properties Trust, Series D, 8.600% 5,000 106,250
Equity Residential Properties Trust, Series L, 7.625% 9,200 167,900
First Industrial Realty Trust, Inc., 8.750% 3,600 72,000
First Industrial Realty Trust, Inc., Series D, 7.950% 2,000 36,250
First Industrial Realty Trust, Inc., Series E, 7.900% 1,500 27,563
Highwoods Properties, Inc., Series B, 8.000% 11,300 195,631
Highwoods Properties, Inc., Series D, 8.000% 2,600 46,150
Public Storage, Inc., Series K, 8.250% 7,000 150,937
Public Storage, Inc., Series L, 8.250% 10,000 213,750
-----------
4,254,569
-----------
TELECOMMUNICATIONS--0.6%
Adelphia Business Solutions, Inc., Series B, 12.875% PIK 2,244 2,171,996
-----------
UTILITIES--0.3%
Del Marva Power & Light Co., 4.000% 434 28,861
Entergy Louisiana, Inc., 4.440% 830 36,520
Entergy New Orleans, Inc., 4.360% 90 3,915
Entergy New Orleans, Inc., 4.750% 2,876 161,056
Jersey Central Power & Light Co., 4.000% 850 46,750
MDU Resources Group, Inc., 5.100% 144A 900 78,300
Niagara Mohawk Power Corp., 3.400% 5,100 198,900
Niagara Mohawk Power Corp., 3.600% 200 8,000
Niagara Mohawk Power Corp., 3.900% 250 10,188
Niagara Mohawk Power Corp., 4.850% 2,850 162,450
Northern States Power Co., $4.11 100 5,950
</TABLE>
36
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PREFERRED STOCKS-CONTINUED
UTILITIES--CONTINUED
PG&E Corp., Series E, 5.000% 18,900 $ 340,200
Public Service Electric & Gas Co., 4.180% 1,950 110,175
-----------
1,191,265
-----------
TOTAL PREFERRED STOCKS
(Identified Cost $13,168,311) 14,055,355
-----------
WARRANTS--0.0% OF NET ASSETS
OIL & GAS--0.0%
Hvide Marine, Inc., expiring 06/30/07 144A * 2,822 12,699
Hvide Marine, Inc., expiring 12/15/03 * 761 1,522
-----------
14,221
-----------
TOTAL WARRANTS
(Identified Cost $6,531) 14,221
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENT--0.3% OF NET ASSETS
Repurchase Agreement with State Street Bank and
Trust Co., dated 3/31/00 at 4.750% to be
repurchased at $1,198,474 on 4/03/00 collateralized
by $990,000 U.S. Treasury Bond, 8.000% due 11/15/21
with a value of $1,225,853 USD 1,198,000 1,198,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $1,198,000) 1,198,000
------------
TOTAL INVESTMENTS--98.5%
(IDENTIFIED COST $397,361,178) @ 384,531,742
Cash and Other Assets, Less Liabilities--1.5% 5,880,434
------------
NET ASSETS--100% $390,412,176
============
</TABLE>
x 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.
++ Floating Rate Bond: Coupon is six month London Interbank
Offered Rate (LIBOR) plus .8125%.
PIK All or a portion of income may be received as additional securities.
^ Security in default.
* Non-income producing security.
@ At March 31, 2000, the net unrealized depreciation on investments based on
cost of $397,361,178 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 $16,723,982 and $29,553,418, respectively,
resulting in net unrealized depreciation of $12,829,436.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
KEY TO ABBREVIATIONS:
AUD: Australian Dollar
CAD: Canadian Dollar
NZD: New Zealand Dollar
USD: United States Dollar
ZAR: South African Rand
See accompanying notes to financial statements.
38
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES--84.9% OF NET ASSETS
NON-CONVERTIBLE BONDS--61.6%
AUTO & RELATED--1.1%
Federal-Mogul Corp., 7.500%, 1/15/09 USD 500,000 $384,830
---------
BROADCASTING--1.2%
Fox Family Worldwide, Inc., Zero Coupon Bond,
11/01/07 (step to 10.250% on 11/01/02) # 675,000 411,750
CANADIAN--3.4%
Call-Net Enterprises, Inc., 10.800%, 5/15/09
(step to 10.800% on 5/15/04) # 500,000 203,750
Clearnet Communications, Inc., Zero Coupon Bond,
8/13/07 (step to 11.750% on 8/13/02) # CAD 815,000 400,267
Clearnet Communications, Inc., Zero Coupon Bond,
2/15/09 (step to 10.750% on 2/15/04) # 350,000 137,515
Clearnet Communications, Inc., Zero Coupon Bond,
5/01/09 (step to 10.125% on 5/1/04) # USD 250,000 141,250
Microcell Telecommunications, Inc., Zero Coupon Bond,
10/15/07 (step to 11.125% on 10/15/02) # CAD 535,000 253,533
---------
1,136,315
---------
COMMUNICATIONS--1.6%
Charter Communications Holdings, Zero Coupon Bond,
4/01/11 (step to 9.920% on 4/04/04) # USD 1,000,000 550,000
---------
COMPUTER SERVICES--0.7%
Rhythms NetConnections, Inc., Series B, Zero Coupon
Bond, 5/15/08 (step to 13.50% on 5/15/03) # 500,000 245,000
---------
ELECTRONIC COMPONENTS--0.2%
Zenith Electronics Corp., 8.190%, 11/01/09 145,000 52,200
---------
ENTERTAINMENT--0.1%
Boston Celtics Ltd., 6.000%, 6/30/38 44,000 23,430
---------
FOOD & BEVERAGE--0.9%
Borden, Inc., 7.875%, 2/15/23 370,000 295,719
---------
FOREIGN GOVERNMENT/AGENCY--10.5%
City of Buenos Aires, 10.500%, 5/28/04 144A ARS 250,000 222,500
Republic of Argentina, 8.875%, 3/01/29 USD 325,000 234,195
Republic of Brazil, 10.125%, 5/15/27 675,000 550,125
Republic of Brazil C Bond, 8.000%, 4/15/14 PIK 667,264 499,648
Republic of Ecuador, 7.1875%, 2/27/15++ ^ 515,173 142,641
Republic of Panama, 4.250%, 7/17/14
(step to 4.500% on 7/17/00) # 300,000 240,000
Republic of Peru, 3.750%, 3/07/17
(step to 4.000% on 3/07/01) # 1,200,000 735,000
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES--CONTINUED
FOREIGN GOVERNMENT/AGENCY--CONTINUED
Republic of South Africa, 13.500%, 9/15/15 ZAR 1,500,000 $221,534
Republic of Venezuela, 9.250%, 9/15/27 USD 1,050,000 693,000
---------
3,538,643
---------
FOREIGN ISSUER--18.1%
Alestra SA de RL de CV, 12.125%, 5/15/06 125,000 125,000
APP China Group Ltd., 14.000%, 3/15/10 250,000 216,250
Bangko Sentral Pilipinas, 8.600%, 6/15/27 525,000 417,277
Bangkok Bank Public Co. Ltd., 9.025%, 3/15/29 144A 400,000 315,000
Cablevision SA, 13.750%, 4/30/07 144A 275,000 271,890
Compania de Alimentos Fargo SA, 13.250%, 8/01/08 625,000 556,250
Dolphin Telecom Plc, Zero Coupon Bond, 6/01/08
(step to 11.625% on 6/01/03) # EUR 500,000 213,527
Espirito Santo Centrais Eletricas SA, 10.000%, 7/15/07 USD 375,000 311,250
Korea Electric Power Corp., 7.400%, 4/01/16 250,698 228,088
Murrin Murrin Holdings Property Ltd., 9.375%, 8/31/07 75,000 64,500
Petroleos Mexicanos, 8.625%, 12/01/23 144A 275,000 253,000
Petroleos Mexicanos, 9.250%, 3/30/18 475,000 461,938
Philippine Long Distance Telephone Co.,
8.350%, 3/06/17 175,000 136,077
Pindo Deli Finance Mauritius Ltd., 10.750%, 10/01/07 500,000 357,500
Pindo Deli Finance Mauritius LTD., 10.875%, 10/01/27 600,000 354,000
Pycsa Panama SA, 10.280%, 12/15/12 144A 122,375 73,425
Quezon Power Philippines Co., 8.860%, 6/15/17 325,000 252,281
Siam Commercial Bank Public Co. Ltd., 7.500%,
3/15/06 144A 275,000 231,000
Tata Electric Co., 8.500%, 8/19/17 144A 200,000 176,612
Tenaga Nasional Berhad, 7.500%, 11/01/25 144A 335,000 284,136
TFM SA de CV, Zero Coupon Bond, 6/15/09
(step to 11.750% on 6/15/02) # 250,000 175,000
Tjiwi Kimia Mauritius Ltd., 10.000%, 8/01/04 250,000 186,250
Total Access Communication Public Co. Ltd.,
7.625%, 11/04/01 144A 200,000 180,000
Total Access Communication Public Co. Ltd.,
8.375%, 11/04/06 144A 300,000 252,000
---------
6,092,251
---------
OIL & GAS--3.5%
Chesapeake Energy Corp., 9.625%, 5/01/05 425,000 395,250
Chesapeake Energy Corp., Series B, 7.875%, 3/15/04 200,000 178,000
Hvide Marine, Inc., 12.500%, 6/30/07 144A 250,000 225,000
Pioneer Natural Resources Co., 7.200%, 1/15/28 500,000 370,000
---------
1,168,250
---------
</TABLE>
40
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES--CONTINUED
OIL & GAS DRILLING EQUIPMENT--2.4%
R & B Falcon Corp., 6.750%, 4/15/05 USD 250,000 $216,250
R & B Falcon Corp., Series B, 7.375%, 4/15/18 750,000 573,750
---------
790,000
---------
OIL & GAS REFINING--0.1%
Clark Oil & Refining Corp., 9.500%, 9/15/04 48,000 36,960
---------
RETAIL--GENERAL--2.5%
Dillon Read Structured Finance Corp.,
7.430%, 8/15/18 250,000 211,797
Venator Group, Inc., 7.000%, 10/15/02 125,000 113,669
Woolworth Corp., 8.500%, 1/15/22 810,000 508,275
---------
833,741
---------
RETAIL--SPECIALTY--0.3%
Musicland Group, Inc., Series B, 9.875%, 3/15/08 100,000 87,000
---------
STEEL--0.1%
Geneva Steel Co., 9.500%, 1/15/04 ^ 101,000 19,190
---------
TELECOMMUNICATIONS--13.1%
Intermedia Communications, Inc., Zero Coupon Bond,
3/01/09 (STEP TO 12.250% on 3/01/04) # 750,000 450,000
Level 3 Communications, Inc., Zero Coupon Bond,
12/01/08 (step to 10.500% on 12/01/03) # 1,000,000 547,500
Level 3 Communications, Inc., Zero Coupon Bond,
3/15/10 (step to 12.875% on 3/15/05) # 144A 500,000 248,750
McCaw International Ltd., Zero Coupon Bond,
4/15/07 (step to 13.000% on 4/15/02) # 200,000 144,000
Nextel Communications, Inc., Zero Coupon Bond,
10/31/07 (step to 9.750% on 10/31/02) # 400,000 274,000
Nextel Communications, Inc., Zero Coupon Bond,
2/15/08 (step to 9.950% on 2/15/03) # 250,000 168,750
Nextel International, Inc., Zero Coupon Bond,
4/15/08 (step to 12.125% on 4/15/03) # 650,000 403,000
Nextlink Communications, Inc., Zero Coupon Bond,
4/15/08 (step to 9.450% on 4/15/03) # 725,000 427,750
RCN Corp., Zero Coupon Bond, 2/15/08
(step to 9.800% on 2/15/03) # 1,350,000 803,250
RCN Corp., Zero Coupon Bond, 7/01/08
(step to 11.000% on 7/01/03) # 150,000 87,750
Teligent, Inc., Zero Coupon Bond, 3/01/08
(step to 11.500% on 3/01/03) # 1,425,000 755,250
Triton Communications LLC, Zero Coupon Bond,
5/01/08 (step to 11.000% on 5/01/03) # 150,000 103,125
---------
4,413,125
---------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES--CONTINUED
TEXTILE & APPAREL--0.9%
Phillips Van Heusen Corp., 7.750%, 11/15/23 USD 275,000 $212,437
Pillowtex Corp., Series B, 9.000%, 12/15/07 250,000 86,250
---------
298,687
---------
TRANSPORTATION--0.9%
Trico Marine Services, Inc., 8.500%, 8/01/05 350,000 315,000
---------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $21,724,495) 20,692,091
----------
CONVERTIBLE BONDS--23.3%
AUTO & RELATED--1.1%
Exide Corp., 2.900%, 12/15/05 144A 660,000 379,500
----------
CANADIAN--1.5%
Rogers Communications, Inc., 2.000%, 11/26/05 485,000 495,912
----------
COMPUTERS--2.6%
Cray Research, Inc., 6.125%, 2/01/11 140,000 84,700
HMT Technology Corp., 5.750%, 1/15/04 84,000 38,640
Maxtor Corp., 5.750%, 3/01/12 420,000 294,000
Quantum Corp.--DLT & Storage Systems,
7.000%, 8/01/04 100,000 80,500
S3, Inc., 5.750%, 10/01/03 112,000 126,980
Telxon Corp., 5.750%, 1/01/03 181,000 154,076
Western Digital, Zero Coupon Bond, 2/18/18 250,000 48,125
Western Digital, Zero Coupon Bond, 2/18/18 144A 223,000 42,928
----------
869,949
----------
ELECTRONIC COMPONENTS--0.9%
EDO Corp., 7.000%, 12/15/11 100,000 78,750
Kent Electronics Corp., 4.500%, 9/01/04 265,000 235,188
----------
313,938
----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--1.7%
Cirrus Logic, Inc., 6.000%, 12/15/03 460,000 414,000
Park Electrochemical Corp., 5.500%, 3/01/06 100,000 82,625
Richardson Electronics Ltd., 7.250%, 12/15/06 100,000 73,750
----------
570,375
----------
<PAGE>
FOREIGN ISSUER--4.0%
APP Finance VII Mauritius Ltd., 3.500%, 4/30/03 144A 140,000 110,250
APP Finance VII Mauritius Ltd., 3.500%, 4/30/03 125,000 98,437
Bangkok Bank Public Co. Ltd., 4.589%, 3/03/04 320,000 172,800
Banpu Public Co., 2.750%, 4/10/03 80,000 85,600
Empresas ICA Sociedad, 5.000%, 3/15/04 420,000 247,800
Loxley Public Co. Ltd., 2.500%, 4/04/01 ^ 200,000 58,000
Sappi BVI Finance, 7.500%, 8/01/02 170,000 163,200
</TABLE>
42
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES--CONTINUED
FOREIGN ISSUER--CONTINUED
Siam Commercial Bank Public Co. Ltd., 3.250%, 1/24/04 USD 525,000 $280,875
Ssangyong Oil Refining Co., Inc., 3.000%, 12/31/04 110,000 76,725
Total Access Communication Public Co. Ltd., 2.000%, 5/31/06 50,000 56,250
----------
1,349,937
----------
FREIGHT TRANSPORTATION--0.1%
Worldway Corp., 6.250%, 4/15/11 25,000 20,250
----------
HEALTH CARE--BIOTECHNOLOGY--0.3%
Human Genome Sciences, Inc., 3.750%, 3/15/07 144A 150,000 93,000
----------
HEALTH CARE--DRUGS--2.5%
Dura Pharmaceuticals, Inc., 3.500%, 7/15/02 646,000 520,838
Glycomed, Inc., 7.500%, 1/01/03 84,000 77,342
NABI, Inc., 6.500%, 2/01/03 320,000 259,600
----------
857,780
----------
HEALTH CARE--PRODUCTS--0.3%
Centocor, Inc., 4.750%, 2/15/05 100,000 110,750
----------
HEALTH CARE--SERVICES--1.9%
Healthsouth Corp., 3.250%, 4/01/03 100,000 77,500
Medical Care International, Inc., 6.750%, 10/01/06 484,000 414,425
PhyCor, Inc., 4.500%, 2/15/03 156,000 64,545
Tenet Healthcare Corp., 6.000%, 12/01/05 112,000 92,960
----------
649,430
----------
HOME BUILDERS--0.4%
Schuler Homes, Inc., 6.500%, 1/15/03 182,000 149,240
----------
HOTELS--0.6%
Hilton Hotels Corp., 5.000%, 5/15/06 250,000 189,375
----------
INDUSTRIAL EQUIPMENT--1.2%
MascoTech, Inc., 4.500%, 12/15/03 525,000 387,844
----------
INSURANCE--1.4%
Loews Corp., 3.125%, 9/15/07 525,000 469,219
----------
MACHINERY--0.1%
Intevac, Inc., 6.500%, 3/01/04 56,000 28,560
----------
<PAGE>
MANUFACTURING--0.5%
Hexcel Corp., 7.000%, 8/01/03 156,000 106,860
Hexcel Corp., 7.000%, 8/01/11 98,000 62,720
----------
169,580
----------
OIL & GAS--1.1%
Key Energy Group, Inc., 5.000%, 9/15/04 500,000 373,125
----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES--CONTINUED
RESTAURANTS - 0.1%
Einstein/Noah Bagel Corp., 7.250%, 6/01/04 USD 70,000 $28,000
----------
RETAIL--SPECIALTY--0.2%
Bell Sports Corp., 4.250%, 11/15/00 53,000 46,640
CML Group, Inc., 5.500%, 1/15/03 ^ 81,000 51
Jacobson Stores, Inc., 6.750%, 12/15/11 56,000 38,220
----------
84,911
----------
TELECOMMUNICATIONS--0.7%
Broadband Technologies, Inc., 5.000%, 5/15/01 415,000 228,250
----------
TEXTILE & APPAREL--0.1%
Dixie Yarns, Inc., 7.000%, 5/15/12 32,000 21,760
----------
TOTAL CONVERTIBLE BONDS
(Identified Cost $8,314,081) 7,840,685
----------
TOTAL BONDS AND NOTES
(Identified Cost $30,038,576) 28,532,776
----------
SHARES
-----------------------------------------------------------------------------------------
COMMON STOCKS-4.7% OF NET ASSETS
FOREIGN ISSUER--0.8%
Sappi Ltd. ADR 34,500 273,844
----------
OIL & GAS--0.5%
Chesapeake Energy Corp. * 25,025 81,331
Hvide Marine, Inc. * 6,793 89,158
----------
170,489
----------
REAL ESTATE INVESTMENT TRUSTS--0.9%
Associated Estates Realty Corp. 12,600 101,588
Developers Diversified Realty Corp. 14,550 201,881
----------
303,469
----------
RESTAURANTS--0.0%
Advantica Restaurant Group, Inc. * 8,745 13,118
----------
UTILITIES--0.9%
Wisconsin Energy Corp. 15,000 299,062
----------
UTILITIES - ELECTRIC--1.6%
Texas Utilities Co. 17,500 519,531
----------
TOTAL COMMON STOCKS
(Identified Cost $1,892,819) 1,579,513
----------
</TABLE>
44
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PREFERRED STOCKS-5.02% OF NET ASSETS
AUTO & RELATED--0.2%
Federal-Mogul Financing Trust, 7.000% 2,500 $72,500
----------
BUILDING MATERIALS--1.3%
Owens Corning, 6.500% 12,500 440,625
----------
CONTAINERS--0.6%
Owens-Illinois, Inc., 4.750% 7,000 189,437
----------
FINANCIAL SERVICES--0.5%
Hercules Trust I, 6.50% 300 174,300
----------
FOREIGN ISSUER--0.5%
Philippine Long Distance Telephone Co., $3.50, GDS 3,450 143,606
Siam Commercial Bank Public Co. Ltd., 5.250% 144A 30,000 24,005
----------
167,611
----------
OIL & GAS--0.1%
Chesapeake Energy Corp., 7.000% 1,000 37,250
----------
REAL ESTATE INVESTMENT TRUSTS--0.2%
JDN Reality Corp., Series A, 9.375% 3,800 65,313
----------
TELECOMMUNICATIONS--0.8%
Adelphia Business Solutions, Inc., Series B, 12.875% PIK 285 275,649
----------
UTILITIES--0.8%
Central Maine Power Co., 3.500% 1,320 54,615
Niagara Mohawk Power Corp., 3.400% 1,560 60,840
Niagara Mohawk Power Corp., 3.600% 960 38,400
Niagara Mohawk Power Corp., 4.100% 1,890 88,830
Niagara Mohawk Power Corp., 5.250% 100 6,500
----------
249,185
----------
TOTAL PREFERRED STOCKS
(Identified Cost $1,653,150) 1,671,870
----------
<PAGE>
WARRANTS--0.0% OF NET ASSETS
FINANCIAL SERVICES--0.0%
Siam Commercial Bank Public Co. Ltd., expiring 5/10/02 * 30,000 8,134
----------
OIL & GAS--0.0%
Hvide Marine, Inc., expiring 06/30/07 144A * 1,411 6,349
Hvide Marine, Inc., expiring 12/15/03 * 163 326
----------
6,675
----------
TOTAL WARRANTS
(Identified Cost $1,428) 14,809
----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
-----------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENT--3.6% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust
Co., dated 3/31/00 at 4.750% to be repurchased at
$1,202,476 on 4/03/00 collateralized by $995,000
U.S Treasury Bond, 8.000% due 11/15/21 with a value
of $1,232,044 USD 1,202,000 $1,202,000
----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $1,202,000) 1,202,000
----------
TOTAL INVESTMENTS--98.2%
(IDENTIFIED COST $34,787,973) @ 33,000,968
Cash and Other Assets, Less Liabilities--1.8% 596,905
----------
NET ASSETS--100% $33,597,873
===========
</TABLE>
x 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.
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%.
^ Security in default.
* Non-income producing security.
@ At March 31, 2000, the net unrealized depreciation on investments based
on cost of $34,787,973 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which
there is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost
over value were $1,433,735 and $3,220,740, respectively, resulting in net
unrealized depreciation of $1,787,005.
KEY TO ABBREVIATIONS:
ADR: American Depositary Receipts
ARS: Argentina Peso
CAD: Canadian Dollar
EUR: Euro
GDS: Global Depositary Shares
USD: United States Dollar
ZAR: South African Rand
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
----------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-98.0% OF NET ASSETS
NON-CONVERTIBLE BONDS--98.0%
AEROSPACE/DEFENSE--2.9%
Lockheed Martin Corp., 7.700%, 6/15/08 $ 200,000 $ 194,272
Raytheon Co., 6.300%, 3/15/05 300,000 279,612
-----------
473,884
-----------
AUTO & RELATED--4.1%
Cummins Engine Co., Inc., 6.250%, 3/01/03 200,000 192,238
Dana Corp., 6.250%, 3/01/04 200,000 191,244
Delphi Automotive Systems Corp., 6.125%, 5/01/04 150,000 141,330
TRW, Inc., 6.625%, 6/01/04 150,000 141,763
-----------
666,575
-----------
BANKS/SAVINGS & LOANS--3.8%
Bank of America Corp., 7.200%, 4/15/06 50,000 49,220
Capital One Bank, 6.375%, 2/15/03 590,000 565,751
-----------
614,971
-----------
BROADCASTING--1.4%
Comcast Cable Communications, 6.200%, 11/15/08 250,000 225,435
-----------
CHEMICALS--MAJOR--1.3%
Rohm & Haas Co., 6.950%, 7/15/04 205,000 202,384
-----------
COMPUTER HARDWARE--0.7%
Sun Microsystems, Inc., 7.350%, 8/15/04 110,000 109,718
-----------
DATA PROCESSING SERVICES --1.8%
Ceridian Corp., 7.250%, 6/01/04 300,000 292,440
-----------
FINANCIAL SERVICES--16.1%
Asset Securitization Corp., 7.010%, 10/13/26 272,063 272,268
Commercial Credit Co., 6.500%, 6/01/05 50,000 48,218
Duke Capital Corp., 7.250%, 10/01/04 150,000 148,192
EQCC Home Equity Loan Trust, 5.150%, 9/15/08 74,515 71,142
Ford Motor Credit Co., 7.500%, 1/15/03 50,000 50,059
Ford Motor Credit Co. Class B, 7.370%, 7/15/04 200,000 200,542
Green Tree Financial Corp., 6.080%, 12/01/30 350,000 329,983
Green Tree Financial Corp., 6.160%, 2/01/31 300,000 281,904
Household Finance Corp., 5.875%, 9/25/04 450,000 422,118
Navistar Financial Corp., 6.220%, 10/17/05 239,429 234,820
Prudential Home Mortgage
Securities Co., 6.000%, 1/25/09 200,000 191,124
Vanderbilt Mortgage & Finance,
Inc., 6.545%, 4/07/18 350,000 337,179
-----------
2,587,549
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
----------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
FOREIGN GOVERNMENT/AGENCY--6.0%
Government of Poland, 6.000%, 10/27/14
(step to 7.000% on 10/27/02) # $ 475,000 $ 430,492
Republic of South Africa, 8.375%, 10/17/06 550,000 529,375
-----------
959,867
-----------
FOREIGN ISSUER--11.8%
Enersis SA, 6.900%, 12/01/06 50,000 46,447
Industrial Finance Corp. of Thailand,
7.375%, 1/14/07 144A 250,000 236,632
Korea Electric Power Corp., 7.750%, 4/01/13 150,000 139,913
PDVSDA Finance Ltd., 6.450%, 2/15/04 250,000 227,930
PDVSDA Finance Ltd., 6.800%, 11/15/08 100,000 80,607
Pemex Finance Ltd., 9.140%, 8/15/04 150,000 153,072
Perez Companc SA, 8.125%, 7/15/07 144A 525,000 456,750
Pohang Iron & Steel Co. Ltd., 7.125%, 11/01/06 250,000 235,825
Tenaga Nasional Berhad, 7.625%, 4/29/07 144A 325,000 309,702
-----------
1,886,878
-----------
FOREST & PAPER PRODUCTS--0.9%
Temple-Inland, Inc., 6.750%, 3/01/09 150,000 139,498
-----------
GOVERNMENT AGENCIES--4.7%
Federal Home Loan Mortgage Corp.,
5.500%, 3/01/13 185,506 171,012
Federal Home Loan Mortgage Corp.,
6.000%, 11/01/12 431,562 406,609
Federal National Mortgage Association,
5.500%, 4/25/06 129,681 127,736
Federal National Mortgage Association,
6.500%, 2/01/11 53,236 51,589
-----------
756,946
-----------
HEALTH CARE--PRODUCTS--1.5%
Bausch & Lomb, Inc., 6.500%, 8/01/05 250,000 233,688
-----------
OIL & GAS--6.5%
El Paso Energy Corp., 6.750%, 5/15/09 150,000 139,246
Kinder Morgan, Inc., 6.650%, 3/01/05 165,000 156,800
Pioneer Natural Resources Co., 6.500%, 1/15/08 400,000 344,504
R & B Falcon Corp., 6.500%, 4/15/03 450,000 405,000
-----------
1,045,550
-----------
RAIL--TRANSPORT--1.1%
Burlington Northern Santa Fe Corp.,
6.125%, 3/15/09 200,000 180,156
-----------
</TABLE>
48
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
----------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
REAL ESTATE INVESTMENT TRUSTS--12.2%
American Health Properties, Inc., 7.050%, 1/15/02 $ 525,000 $ 507,806
Highwoods Realty LP, 6.750%, 12/01/03 500,000 468,140
Oasis Residential, Inc., 6.750%, 11/15/01 500,000 488,660
Trinet Corporate Realty Trust, Inc.,
6.750%, 3/01/13 550,000 493,752
-----------
1,958,358
-----------
RETAIL--GENERAL--0.8%
J.C. Penney Co., Inc., 7.600%, 4/01/07 150,000 127,716
-----------
SECURITIES--10.9%
Bear Stearns Cos., Inc., 6.125%, 2/01/03 250,000 241,038
Bear Stearns Cos., Inc., 6.150%, 3/02/04 350,000 332,125
Lehman Brothers Holdings, Inc., 7.125%, 9/15/03 540,000 531,457
Morgan Stanley Dean Witter & Co., 5.625%, 1/20/04 250,000 235,773
Nomura Asset Securities Corp., 6.280%, 3/17/28 426,943 409,383
-----------
1,749,776
-----------
TELECOMMUNICATIONS--4.1%
Sprint Capital Corp., 5.875%, 5/01/04 150,000 141,891
TCI Communications, Inc., 6.875%, 2/15/06 525,000 511,933
-----------
653,824
-----------
TEXTILE & APPAREL--1.1%
Tommy Hilfiger Corp., 6.500%, 6/01/03 200,000 184,354
-----------
TRUCKING & LEASING--2.2%
Amerco, 7.490%, 9/18/01 350,000 351,568
-----------
UTILITIES--2.1%
Pennsylvania Electric Co., 5.750%, 4/01/04 200,000 189,100
Texas Utilities Co., 5.940%, 10/15/01 150,000 147,104
-----------
336,204
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $16,359,855) 15,737,339
-----------
TOTAL BONDS AND NOTES
(Identified Cost $16,359,855) 15,737,339
-----------
TOTAL INVESTMENTS--98.0%
(IDENTIFIED COST $16,359,855) @ 15,737,339
Cash and Other Assets, Less Liabilities--2.0% 316,454
-----------
NET ASSETS--100% $16,053,793
===========
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
x 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, 2000, the net unrealized depreciation on investments based on
cost of $16,359,855 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 $39,178 and $661,694, respectively, resulting in net
unrealized depreciation of $622,516.
See accompanying notes to financial statements.
50
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-94.4% OF NET ASSETS
NON-CONVERTIBLE BONDS--79.1%
AEROSPACE/DEFENSE--1.3%
Raytheon Co., 6.400%, 12/15/18 USD 2,000,000 $ 1,653,600
Raytheon Co., 7.200%, 8/15/27 500,000 442,700
-------------
2,096,300
-------------
AIRLINES--1.1%
Delta Air Lines, Inc., 8.300%, 12/15/29 2,000,000 1,821,340
-------------
AIR TRANSPORT--2.3%
Atlas Air, Inc., 7.680%, 1/02/14 3,884,722 3,649,813
-------------
AUTO & RELATED--3.2%
Dana Corp., 7.000%, 3/15/28 1,000,000 861,450
Dana Corp., 7.000%, 3/01/29 1,000,000 855,410
Delphi Automotive Systems Corp., 7.125%, 5/01/29 1,125,000 972,011
Ford Motor Co., 6.375%, 2/01/29 2,000,000 1,686,740
TRW, Inc., 6.650%, 1/15/28 250,000 201,400
TRW, Inc., 7.750%, 6/01/29 500,000 462,861
-------------
5,039,872
-------------
BANKS/SAVINGS & LOANS--1.2%
First Union Institutional Trust, 7.850%, 1/01/27 500,000 464,360
Key Bank NA, 6.950%, 2/01/28 500,000 453,015
Keycorp Capital II, 6.875%, 3/17/29 500,000 431,500
Keycorp Capital III, 7.750%, 7/15/29 650,000 598,897
-------------
1,947,772
-------------
BUILDING & CONSTRUCTION--0.3%
Lennar Corp., 7.625%, 3/01/09 500,000 457,765
-------------
CANADIAN--17.1%
Canadian Government, Zero Coupon Bond, 6/01/25 CAD 31,550,000 5,523,180
Hydro Quebec, Zero Coupon Bond, 8/15/20 7,500,000 1,398,621
MacMillan Bloedel Ltd., 7.700%, 2/15/26 USD 305,000 295,700
Milit-Air, Inc., 5.750%, 6/30/19 CAD 1,800,000 1,174,197
New Brunswick FM Project, Zero Coupon Bond,
11/30/27 (step to 6.470% on 5/30/03) 144A # 500,000 277,005
Ontario Hydro, Zero Coupon Bond, 10/15/21 850,000 156,606
Ontario Hydro, 8.900%, 8/18/22 1,175,000 1,051,608
Province of Alberta, 5.400%, 6/15/10 2,500,000 1,649,509
Province of Alberta, 5.930%, 9/16/16 681,750 461,292
Province of British Columbia, Zero Coupon
Bond, 8/23/13 5,000,000 1,489,126
Province of British Columbia, Zero Coupon
Bond, 6/09/14 1,000,000 283,102
Province of British Columbia, Zero Coupon
Bond, 9/05/20 3,300,000 641,871
Province of British Columbia, Zero Coupon
Bond, 6/09/22 4,000,000 697,598
Province of British Columbia, Zero Coupon
Bond, 8/19/22 4,195,000 722,757
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
CANADIAN--CONTINUED
Province of British Columbia, Zero Coupon
Bond, 8/23/24 CAD 10,000,000 $ 1,522,040
Province of British Columbia, Zero Coupon
Bond, 11/19/27 6,500,000 816,247
Province of British Columbia, 5.700%, 6/18/29 325,000 205,023
Province of Manitoba, 6.500%, 9/22/17 1,825,000 1,256,398
Province of Manitoba, 7.750%, 12/22/25 3,100,000 2,512,757
Province of Newfoundland, 6.150%, 4/17/28 500,000 327,658
Province of Ontario, Zero Coupon Bond, 6/02/27 10,000,000 1,368,327
Province of Saskatchewan, Zero Coupon Bond, 4/10/14 2,500,000 719,490
Province of Saskatchewan, 5.750%, 3/05/29 3,550,000 2,271,266
Province of Saskatchewan (Certificate of Deposit),
Zero Coupon Bond, 2/04/22 1,281,000 225,860
Province of Saskatchewan (Certificate of Deposit),
Zero Coupon Bond, 5/30/25 1,250,000 179,132
-------------
27,226,370
-------------
COMPUTER HARDWARE--3.0%
Dell Computer Corp., 7.100%, 4/15/28 USD 350,000 310,433
Seagate Technology, Inc., 7.370%, 3/01/07 2,000,000 1,739,340
Seagate Technology, Inc., 7.450%, 3/01/37 3,250,000 2,600,422
Seagate Technology, Inc., 7.875%, 3/01/17 200,000 150,172
-------------
4,800,367
-------------
ELECTRONIC COMPONENTS--0.0%
Zenith Electronics Corp., 8.190%, 11/01/09 34,000 12,240
-------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--0.1%
Pioneer Standard Electronics, Inc., 8.500%, 8/01/06 250,000 239,212
-------------
ENTERTAINMENT--4.0%
Time Warner Entertainment Co., 6.875%, 6/15/18 410,000 372,649
Time Warner Entertainment Co., 6.950%, 1/15/28 2,250,000 2,008,643
Time Warner Entertainment Co., 7.570%, 2/01/24 2,300,000 2,211,818
Time Warner Entertainment Co., 8.875%, 10/01/12 145,000 154,571
Time Warner, Inc., 6.625%, 5/15/29 1,850,000 1,576,496
-------------
6,324,177
-------------
FINANCIAL SERVICES--2.8%
Capital One Bank, 7.160%, 4/10/06 105,000 101,154
Fleet Financial Group, 6.700%, 7/15/28 786,000 667,817
Household Finance Corp., 5.875%, 2/01/09 2,000,000 1,757,120
Merey Sweeny LP, 8.850%, 12/18/19 144A 500,000 492,115
Security Capital Group, Inc., 7.700%, 6/15/28 1,000,000 825,890
US West Capital Funding, Inc., 6.500%, 11/15/18 500,000 433,500
US West Capital Funding, Inc., 6.875%, 7/15/28 250,000 220,417
-------------
4,498,013
-------------
</TABLE>
52
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
FOOD & BEVERAGE--0.8%
ConAgra, Inc., 7.000%, 10/01/28 USD 1,000,000 $ 875,970
Pepsi Bottling Group, Inc., 7.000%, 3/01/29 500,000 451,889
-------------
1,327,859
-------------
FOREIGN GOVERNMENT/AGENCY--4.1%
New South Wales Treasury, Zero Coupon
Bond, 11/23/20 AUD 6,000,000 850,589
Republic of Brazil C Bond, 8.000%, 4/15/14 PIK USD 3,033,028 2,271,131
Republic of South Africa, 8.500%, 6/23/17 1,125,000 1,043,437
Republic of South Africa, 12.000%, 2/28/05 ZAR 4,250,000 615,477
Republic of South Africa, 12.500%, 12/21/06 8,600,000 1,235,447
Republic of South Africa, 13.000%, 8/31/10 1,500,000 216,384
Republic of South Africa, 13.500%, 9/15/15 2,500,000 366,999
-------------
6,599,464
-------------
FOREIGN ISSUER--12.3%
Bangkok Bank Public Co. Ltd., 9.025%, 3/15/29 144A USD 2,250,000 1,771,875
Cerro Negro Finance Ltd., 7.900%, 12/01/20 144A 500,000 408,310
Embotelladora Andina SA, 7.625%, 10/01/27 1,000,000 858,117
Enersis SA, 7.400%, 12/01/16 2,550,000 2,266,292
Espirito Santo Centrais Eletricas SA, 10.000%, 7/15/07 1,000,000 830,000
Industrial Finance Corp. of Thailand, 6.875%,
4/01/03 144A 575,000 548,619
Korea Electric Power Corp., 7.400%, 4/01/16 455,815 414,705
PDVSA Finance Ltd., 7.400%, 8/15/16 2,000,000 1,527,838
PDVSA Finance Ltd., 7.500%, 11/15/28 2,000,000 1,421,300
Perez Companc SA, 8.125%, 7/15/07 144A 350,000 304,500
Petrozuata Finance, Inc., 8.220%, 4/01/17 144A 700,000 546,000
Pindo Deli Finance Mauritius Ltd., 10.875%, 10/01/27 100,000 59,000
Samsung Electronics Co. Ltd., 7.700%, 10/01/27 144A 1,250,000 975,000
Telekom Malaysia Berhad, 7.875%, 8/01/25 144A 2,750,000 2,494,250
Tenaga Nasional Berhad, 7.500%, 11/01/25 144A 5,390,000 4,571,625
Total Access Communication Public Co. Ltd., 8.375%,
11/04/06 144A 150,000 126,000
Transgas De Occidente SA, 9.790%, 11/01/10 144A 487,167 422,618
-------------
19,546,049
-------------
FOREST & PAPER PRODUCTS--1.3%
Georgia-Pacific Corp. (Timber Group), 7.250%, 6/01/28 500,000 441,415
Georgia-Pacific Group, 7.750%, 11/15/29 1,250,000 1,170,525
Westvaco Corp., 7.000%, 8/15/23 500,000 432,005
-------------
2,043,945
-------------
GOVERNMENT AGENCIES--1.7%
Federal Home Loan Mortgage Corp., 6.000%,
4/15/28 1,000,000 889,060
Federal National Mortgage Association, Zero
Coupon Bond, 10/29/07 NZD 6,850,000 1,866,427
-------------
2,755,487
-------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
HEALTH CARE--PRODUCTS--0.7%
Bausch & Lomb, Inc., 7.125%, 8/01/28 USD 1,250,000 $ 1,057,562
-------------
HOME BUILDERS--1.5%
Pulte Corp., 7.000%, 12/15/03 188,000 176,876
Pulte Corp., 7.300%, 10/24/05 200,000 184,446
Pulte Corp., 7.625%, 10/15/17 2,500,000 1,990,625
-------------
2,351,947
-------------
INSURANCE--0.0%
Progressive Corp., 6.625%, 3/01/29 35,000 30,023
-------------
OIL & GAS--3.2%
Anadarko Petroleum Corp., 6.625%, 1/15/28 1,000,000 844,610
Coastal Corporation, 6.500%, 5/15/06 130,000 122,500
Global Marine, Inc., 7.000%, 6/01/28 250,000 215,275
Global Marine, Inc., 7.125%, 9/01/07 50,000 47,805
Mitchell Energy & Development Corp., 6.750%, 2/15/04 300,000 284,268
Pennzoil-Quaker State Co., 7.375%, 4/01/29 1,000,000 724,510
Pioneer Natural Resources Co., 7.200%, 1/15/28 1,000,000 740,000
Tennessee Gas Pipeline Co., 7.000%, 10/15/28 750,000 664,117
Union Oil Co., 7.500%, 2/15/29 45,000 41,814
Union Pacific Resources Group, Inc., 7.150%, 5/15/28 350,000 308,857
Union Pacific Resources Group, Inc., 7.500%, 10/15/26 250,000 230,823
Union Pacific Resources Group, Inc., 7.950%, 4/15/29 1,000,000 953,480
-------------
5,178,059
-------------
OIL & GAS DRILLING EQUIPMENT--1.3%
R & B Falcon Corp., Series B, 7.375%, 4/15/18 2,750,000 2,103,750
-------------
RAIL--TRANSPORT--0.1%
Missouri Pacific Railroad Co., 5.000%, 1/01/45 275,000 140,250
-------------
REAL ESTATE INVESTMENT TRUSTS--6.7%
AMB Property Corp., 7.500%, 6/30/18 1,000,000 884,330
American Health Properties, Inc., 7.500%, 1/15/07 110,000 96,974
Camden Property Trust, 7.000%, 11/15/06 500,000 464,245
Colonial Realty LP, 8.050%, 7/15/06 165,000 159,266
EOP Operating LP, 7.500%, 4/19/29 2,000,000 1,736,260
Evans Withycombe Residential, Inc., 7.625%, 4/15/07 45,000 43,928
First Industrial, 7.500%, 12/01/17 2,500,000 2,145,475
First Industrial, 7.600%, 7/15/28 1,250,000 1,057,150
Highwoods Realty LP, 7.500%, 4/15/18 1,000,000 849,440
Susa Partnership LP, 7.450%, 7/01/18 80,000 68,513
Susa Partnership LP, 7.500%, 12/01/27 1,750,000 1,457,330
Trinet Corporate Realty Trust, Inc., 7.700%, 7/15/17 2,425,000 1,725,169
-------------
10,688,080
-------------
RETAIL--GENERAL--0.2%
Woolworth Corp., 8.500%, 1/15/22 500,000 313,750
-------------
</TABLE>
54
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
SECURITIES--0.9%
Lehman Brothers Holdings, Inc., 6.625%, 2/15/08 USD 1,500,000 $ 1,398,525
Lehman Brothers Holdings, Inc., 7.375%, 1/15/07 60,000 58,924
-------------
1,457,449
-------------
SUPRANATIONAL--2.2%
International Bank for Reconstruction & Development,
Zero Coupon Bond, 8/20/07 NZD 9,650,000 2,734,412
International Bank for Reconstruction & Development,
8.000%, 5/23/07 1,505,000 755,819
-------------
3,490,231
-------------
TAXABLE MUNICIPAL--0.5%
Orange County, California Pension Obligation,
Zero Coupon Bond, 9/01/16 USD 2,500,000 739,400
-------------
TELECOMMUNICATIONS--0.6%
TCI Communications, Inc., 7.875%, 2/15/26 970,000 982,329
-------------
TEXTILE & APPAREL--0.8%
Burlington Industries, Inc., 7.250%, 8/01/27 315,000 212,625
Fruit of the Loom, Inc., 7.375%, 11/15/23 ^ 550,000 214,500
Kellwood Co., 7.625%, 10/15/17 1,000,000 884,320
-------------
1,311,445
-------------
TOBACCO--1.6%
Philip Morris Cos., Inc., 7.750%, 1/15/27 3,000,000 2,477,640
-------------
TRANSPORTATION--0.3%
American President Cos. Ltd., 7.125%, 11/15/03 500,000 360,000
American President Cos. Ltd., 8.000%, 1/15/24 100,000 59,000
-------------
419,000
-------------
UTILITIES--1.9%
Boston Edison Co., 7.800%, 3/15/23 250,000 234,499
Commonwealth Edison Co., 4.750%, 12/01/11 126,000 97,537
KN Capital Trust, 7.630%, 4/15/28 2,000,000 1,771,076
KN Energy, Inc., 7.250%, 3/01/28 1,000,000 891,340
-------------
2,994,452
-------------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $132,485,891) 126,121,412
-------------
CONVERTIBLE BONDS--15.3%
AUTO & RELATED--0.3%
Magna International, Inc. Class A, 4.875%, 2/15/05 500,000 430,625
-------------
COMPUTERS--0.1%
Maxtor Corp., 5.750%, 3/01/12 150,000 105,000
-------------
DIVERSIFIED OPERATIONS--2.2%
Ogden Corp., 5.750%, 10/20/02 600,000 500,735
Thermo Electron Corp., 4.250%, 1/01/03 144A 3,250,000 2,957,500
-------------
3,458,235
-------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
ELECTRONIC COMPONENTS--SEMICONDUCTORS--0.0%
Richardson Electronics Ltd., 7.250%, 12/15/06 USD 50,000 $ 36,875
-------------
ENVIRONMENTAL SERVICES--1.1%
Thermo TerraTech, Inc., 4.625%, 5/01/03 250,000 221,250
Thermo TerraTech, Inc., 4.625%, 5/01/03 144A 1,650,000 1,460,250
-------------
1,681,500
-------------
FINANCIAL SERVICES--0.9%
Bell Atlantic Financial Services, 5.750%, 4/01/03 1,390,000 1,415,229
-------------
FOREIGN ISSUER--1.7%
Bangkok Bank Public Co. Ltd., 4.589%, 3/03/04 500,000 270,000
Banpu Public Co., 2.750%, 4/10/03 250,000 267,500
Burns, Philp, 5.500%, 4/30/04 590,000 354,000
Empresas ICA Sociedad, 5.000%, 3/15/04 100,000 59,000
Loxley Public Co. Ltd., 2.500%, 4/04/01 ^ 1,150,000 333,500
Samsung Display Devices, 0.250%, 3/12/06 260,000 297,700
Siam Commercial Bank Public Co. Ltd., 3.250%, 1/24/04 100,000 53,500
Ssangyong Oil Refining Co., Inc., 3.000%, 12/31/04 100,000 69,750
Telekom Malaysia Berhad, 4.000%, 10/03/04 1,075,000 980,937
-------------
2,685,887
-------------
FREIGHT TRANSPORTATION--0.1%
Builders Transportation, Inc., 6.500%, 5/01/11 ^ 129,000 161
Worldway Corp., 6.250%, 4/15/11 225,000 182,250
-------------
182,411
-------------
HEALTH CARE--DRUGS--0.0%
NABI, Inc., 6.500%, 2/01/03 100,000 81,125
-------------
HEALTH CARE--SERVICES--0.4%
Healthsouth Corp., 3.250%, 4/01/03 750,000 581,250
-------------
INSURANCE--3.5%
Loews Corp., 3.125%, 9/15/07 6,225,000 5,563,594
-------------
MACHINERY--0.0%
Intevac, Inc., 6.500%, 3/01/04 100,000 51,000
-------------
MANUFACTURING--0.1%
FMC Corp., 6.750%, 1/16/05 170,000 144,500
-------------
MULTI-INDUSTRY--0.8%
Thermo Instrument Systems, Inc., 4.500%, 10/15/03 144A 1,450,000 1,326,750
-------------
OFFICE EQUIPMENT--1.8%
Xerox Corp., 0.570%, 4/21/18 5,250,000 2,861,250
-------------
<PAGE>
OIL & GAS--1.6%
Baker Hughes, Inc., Zero Coupon Bond, 5/05/08 2,424,000 1,805,880
Diamond Offshore Drilling, Inc., 3.750%, 2/15/07 350,000 407,750
Noram Energy Corp., 6.000%, 3/15/12 335,000 283,912
-------------
2,497,542
-------------
</TABLE>
56
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
PUBLISHING--0.3%
Scholastic Corp., 5.000%, 8/15/05 144A USD 540,000 $ 516,375
-------------
REAL ESTATE INVESTMENT TRUSTS--0.4%
Federal Realty Investors Trust, 5.250%, 10/28/03 835,000 709,750
-------------
RETAIL--SPECIALTY--0.0%
CML Group, Inc., 5.500%, 1/15/03 ^ 50,000 32
-------------
TOTAL CONVERTIBLE BONDS
(Identified Cost $25,081,273) 24,328,930
-------------
TOTAL BONDS AND NOTES
(Identified Cost $157,567,164) 150,450,342
-------------
<CAPTION>
SHARES
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PREFERRED STOCKS-1.9% OF NET ASSETS
AEROSPACE/DEFENSE--0.2%
Coltec Capital Trust, 5.250% 7,500 272,812
-------------
CHEMICALS--MAJOR--0.1%
E.I. du Pont DeNemours & Co., $3.50 2,200 116,600
-------------
CONTAINERS--0.0%
Owens-Illinois, Inc., 4.750% 3,500 94,719
-------------
OIL & GAS--0.7%
EVI, Inc., Conv., 5.000% 25,250 1,221,469
-------------
REAL ESTATE INVESTMENT TRUSTS--0.3%
Camden Property Trust, $2.25 3,000 66,562
CarrAmerica Realty Corp., Series C, 8.550% 700 13,344
Equity Residential Properties Trust, 7.250% 14,350 283,412
Equity Residential Properties Trust, Series L, 7.625% 2,000 36,500
First Industrial Realty Trust, Inc., Series E, 7.900% 1,500 27,563
-------------
427,381
-------------
UTILITIES--0.6%
Central Illinois Light Co., 4.500% 100 5,800
Connecticut Light & Power Co., $2.20 263 7,068
Consolidated Edison, Inc., Series C, 4.650% 200 13,400
Dayton Power & Light Co., 3.750% 701 37,854
Del Marva Power & Light Co., 4.000% 350 23,275
Duquesne Light Co., 4.000% 300 8,250
Illinois Power Co., 4.080% 400 10,800
Illinois Power Co., 4.200% 300 8,400
Jersey Central Power & Light Co., 4.000% 3,710 204,050
MDU Resources Group, Inc., 5.100% 144A 900 78,300
Minnesota Power & Light Co., 5.000% 100 6,000
Northern Indiana Public Service Co., 4.250% 2,210 124,865
Northern States Power Co., $4.08 50 2,950
Northern States Power Co., $4.10 100 6,000
PG&E Corp., 5.500% 100 1,750
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PREFERED STOCKS-CONTINUED
UTILITIES--CONTINUED
PSI Energy, Inc., 4.320% 200 $ 2,750
Public Service Electric & Gas Co., 4.080% 300 16,500
San Diego Gas & Electric Co., 4.500% 100 1,275
Southern California Edison Co., 4.240% 5,700 81,225
Southern California Edison Co., 4.780% 8,380 118,368
Southern California Edison Co., 4.780% 8,000 125,000
Union Electric Co., $4.50 1,210 64,735
-------------
948,615
-------------
TOTAL PREFERRED STOCKS
(Identified Cost $2,751,778) 3,081,596
-------------
<CAPTION>
FACE
AMOUNT
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENT-2.1% OF NET ASSETS
Repurchase Agreement with State Street Bank and
Trust Co., dated 3/31/00 at 4.750% to be repurchased
at $3,327,317 on 4/03/00 collateralized by $2,740,000
U.S. Treasury Bond, 8.000% due 11/15/21 with a
value of $3,392,764 USD 3,326,000 3,326,000
-------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $3,326,000) 3,326,000
-------------
TOTAL INVESTMENTS--98.4%
(Identified Cost $163,644,942) @ 156,857,938
Cash and Other Assets, Less Liabilities--1.6% 2,514,615
-------------
NET ASSETS--100% $ 159,372,553
=============
</TABLE>
x 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.
@ At March 31, 2000, the net unrealized depreciation on investments based on
cost of $163,644,942 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 $6,032,435 and $12,819,439, respectively, resulting in net
unrealized depreciation of $6,787,004.
<PAGE>
KEY TO ABBREVIATIONS:
AUD: Australian Dollar
CAD: Canadian Dollar
NZD: New Zealand Dollar
USD: United States Dollar
ZAR: South African Rand
See accompanying notes to financial statements.
58
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES PROVIDENT FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
------------------------------------------------------------------------------------------------
COMMON STOCKS-93.2% OF NET ASSETS
<S> <C> <C>
AUTO & RELATED--1.8%
Gentex Corp. * 11,800 $ 437,338
-------------
CHEMICALS--MAJOR--4.1%
Dow Chemical Co. 4,400 501,600
Praxair, Inc. 11,850 493,256
-------------
994,856
-------------
COMMUNICATIONS EQUIPMENT--1.9%
Nortel Networks Corp. 3,700 466,200
-------------
COMPUTER HARDWARE--2.9%
International Business Machines Corp. 6,000 708,000
-------------
CONSUMER PRODUCTS--1.8%
Colgate-Palmolive Co. 7,600 428,450
-------------
ELECTRICAL EQUIPMENT--2.0%
Emerson Electric Co. 9,000 475,875
-------------
ELECTRONIC COMPONENTS--2.1%
Koninklijke (Royal) Philips Electronics NV ADR 2,950 505,372
-------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--5.5%
Advanced Micro Devices, Inc. * 11,800 673,337
Analog Devices, Inc. * 8,000 644,500
-------------
1,317,837
-------------
ELECTRONIC MEASURING INSTRUMENTS--2.1%
Teradyne, Inc. * 6,000 493,500
-------------
ENTERTAINMENT--2.7%
Time Warner, Inc. 6,400 640,000
-------------
FINANCIAL SERVICES--4.9%
Citigroup, Inc. 9,700 575,331
FleetBoston Financial Corp. 16,500 602,250
-------------
1,177,581
-------------
FOREST & PAPER PRODUCTS--6.1%
Fort James Corp. 24,100 530,200
International Paper Co. 13,100 560,025
Smurfit-Stone Container Corp. * 22,700 384,481
-------------
1,474,706
-------------
HEALTH CARE--DRUGS--2.5%
Warner-Lambert Co. 6,100 594,750
-------------
HEALTH CARE--MEDICAL TECHNOLOGY--3.8%
Guidant Corp. * 7,800 458,737
Stryker Corp. 6,700 467,325
-------------
926,062
-------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES PROVIDENT FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
------------------------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
INSURANCE--2.4%
AFLAC, Inc. 12,600 $ 574,088
-------------
MANUFACTURING--4.3%
Minnesota Mining & Manufacturing Co. 5,500 487,094
Tyco International Ltd. 11,200 558,600
-------------
1,045,694
-------------
METALS & MINING--5.7%
Alcan Aluminum Ltd. 14,500 491,188
Newmont Mining Corp. 18,700 419,581
Nucor Corp. 9,400 470,000
-------------
1,380,769
-------------
OIL & GAS DRILLING EQUIPMENT--7.0%
Baker Hughes, Inc. 22,350 676,087
Nabors Industries, Inc. * 11,200 434,700
R & B Falcon Corp. * 28,600 563,063
-------------
1,673,850
-------------
OIL & GAS EXPLORATION--9.2%
Burlington Resources, Inc. 13,900 514,300
Devon Energy Corp. 8,900 432,206
Kerr-McGee Corp. 12,150 701,663
Unocal Corp. 19,200 571,200
-------------
2,219,369
-------------
OIL & GAS--MAJOR INTEGRATED--2.3%
USX Marathon Group 21,200 552,525
-------------
RESTAURANTS--2.4%
McDonald's Corp. 15,300 574,706
-------------
RETAIL--FOOD & DRUG--2.3%
CVS Corp. 15,000 563,438
-------------
RETAIL--GENERAL--2.9%
Target Corp. 9,500 710,125
-------------
RETAIL--SPECIALTY--2.1%
Limited, Inc. 11,800 497,075
-------------
TELECOMMUNICATIONS--8.4%
Bell Atlantic Corp. 9,750 595,969
BellSouth Corp. 10,100 474,700
MCI WorldCom, Inc. * 8,900 403,281
US West, Inc. 7,400 537,425
-------------
2,011,375
-------------
TOTAL COMMON STOCKS
(Identified Cost $20,664,005) 22,443,541
-------------
</TABLE>
60
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES PROVIDENT FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE x
------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT-2.3% OF NET ASSETS
<S> <C> <C>
Repurchase Agreement with State Street Bank and Trust Co.,
dated 3/31/00 at 4.750% to be repurchased at $549,217 on
4/03/00 collateralized by $455,000 U. S. Treasury Bond,
8.000% due 11/15/21 with a value of $563,397 $549,000 $ 549,000
-------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $549,000) 549,000
-------------
TOTAL INVESTMENTS--95.5%
(IDENTIFIED COST $21,213,005) @ 22,992,541
Cash and Other Assets, Less Liabilities--4.5% 1,084,920
-------------
NET ASSETS--100% $24,077,461
=============
</TABLE>
x See Note 1.
* Non-income producing security.
@ At March 31, 2000, the net unrealized appreciation on investments based on
cost of $21,213,005 for federal income tax purposes was as follows:
Aggregate gross unrealized appreciation for all securities in which there
is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost
over value were $2,491,455 and $711,919, respectively, resulting in net
unrealized appreciation of $1,779,536.
KEY TO ABBREVIATIONS:
ADR: American Depositary Receipts
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY GROWTH FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
------------------------------------------------------------------------------------------------
COMMON STOCKS-97.2% OF NET ASSETS
<S> <C> <C>
BANKS/SAVINGS & LOANS--2.4%
Silicon Valley Bancshares * 32,100 $ 2,307,187
-------------
BROADCASTING--3.8%
Emmis Communications Corp. Class A * 48,600 2,259,900
Radio One, Inc. Class A * 19,850 1,322,506
-------------
3,582,406
-------------
BUSINESS SERVICES--6.7%
CoStar Group, Inc. * 8,100 298,687
FairMarket, Inc. * 27,800 632,450
FreeShop.com, Inc. * 22,650 441,675
Macrovision Corp. * 43,800 3,772,275
NetCreations, Inc. * 29,200 1,241,000
-------------
6,386,087
-------------
COMMUNICATIONS EQUIPMENT--17.7%
Aeroflex, Inc. * 33,600 1,663,200
Anadigics, Inc. * 28,200 1,861,200
Anaren Microwave, Inc. * 9,900 949,163
Celeritek, Inc. * 13,300 841,225
Crossroads Systems, Inc. * 8,700 898,275
Ditech Communications Corp. * 16,200 1,718,213
NetOptix Corp. * 9,300 1,597,275
Newport Corp. 15,100 2,038,500
Ortel Corp. * 4,850 910,284
Powerwave Technologies, Inc. * 15,100 1,887,500
SBA Communcations Corp. * 30,950 1,361,800
Tut Systems, Inc. * 16,550 985,759
-------------
16,712,394
-------------
COMPUTER SOFTWARE--10.8%
Apropos Technology, Inc. * 22,600 836,200
Documentum, Inc. * 31,000 2,418,000
Exchange Applications, Inc. * 42,300 2,238,596
Geoworks Corp. * 33,850 1,205,906
Media 100, Inc. * 31,550 1,100,306
Mercury Interactive Corp. * 14,000 1,109,500
Netegrity, Inc. * 19,100 1,308,350
-------------
10,216,858
-------------
ELECTRONIC COMPONENTS--3.9%
Kopin Corp. * 26,100 1,794,375
LightPath Technologies, Inc. Class A * 18,300 825,787
Three-Five Systems, Inc. * 17,400 1,044,000
-------------
3,664,162
-------------
</TABLE>
62
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
------------------------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
ELECTRONIC COMPONENTS--SEMICONDUCTORS--9.9%
Cree Research, Inc. * 16,200 $ 1,828,575
Exar Corp. * 27,250 1,950,078
hi/fn, Inc. * 12,700 826,294
Integrated Silicon Solution, Inc. * 39,950 1,171,034
Pericom Semiconductor Corp. * 22,600 806,538
TranSwitch Corp. * 28,825 2,770,803
-------------
9,353,322
-------------
FINANCIAL SERVICES--4.3%
Advent Software, Inc. * 49,550 2,273,106
Affiliated Managers Group, Inc. * 21,900 1,040,250
Digital Insight Corp. * 14,750 755,938
-------------
4,069,294
-------------
HEALTH CARE--BIOTECHNOLOGY--4.5%
Abgenix, Inc. * 4,050 559,406
Alkermes, Inc. * 9,800 906,500
Aurora Biosciences Corp. * 9,850 402,619
Gene Logic, Inc. * 9,800 412,213
Pharmacyclics, Inc. * 17,700 985,669
Tularik, Inc. * 17,700 546,487
Visible Genetics, Inc. * 12,000 444,000
-------------
4,256,894
-------------
HEALTH CARE--PRODUCTS--3.6%
Biopure Corp. * 38,350 1,277,534
Cytyc Corp. * 43,400 2,094,050
-------------
3,371,584
-------------
HEALTH CARE--SERVICES--5.1%
Accredo Health, Inc. * 30,350 1,005,344
Allscripts, Inc. * 17,700 1,064,213
PolyMedica Corp. * 46,850 2,752,437
-------------
4,821,994
-------------
MACHINERY--7.3%
Advanced Energy Industries, Inc. * 28,900 1,473,900
Applied Science and Technology, Inc. * 29,350 887,838
Kulicke & Soffa Industries, Inc. * 22,000 1,409,375
LTX Corp. * 42,300 1,911,431
PRI Automation, Inc. * 20,300 1,240,837
-------------
6,923,381
-------------
OIL & GAS DRILLING EQUIPMENT--6.2%
Atwood Oceanics, Inc. * 27,200 1,803,700
Marine Drilling Cos., Inc. * 74,100 2,033,119
Patterson Energy, Inc. * 64,100 2,035,175
-------------
5,871,994
-------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
------------------------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
RETAIL--GENERAL--1.1%
Gadzooks, Inc. * 20,950 $ 454,353
Too, Inc. * 19,600 618,625
-------------
1,072,978
-------------
RETAIL--SPECIALTY--4.1%
Cost Plus, Inc. * 33,900 1,146,244
NBTY, Inc. * 64,600 884,213
Tweeter Home Entertainment Group, Inc. * 42,750 1,891,687
-------------
3,922,144
-------------
SECURITIES--0.9%
National Discount Brokers Group, Inc. * 18,000 888,750
-------------
TELECOMMUNICATIONS--4.9%
AirGate PCS, Inc. * 16,800 1,772,400
ITC DeltaCom, Inc. * 53,550 1,907,719
NorthEast Optic Network, Inc. * 11,600 980,925
-------------
4,661,044
-------------
TOTAL COMMON STOCKS
(Identified Cost $77,330,302) 92,082,473
-------------
<CAPTION>
FACE
AMOUNT
-------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT-3.6% OF NET ASSETS
<S> <C> <C>
Repurchase Agreement with State Street Bank and Trust Co.,
dated 3/31/00 at 4.750% to be repurchased at $3,407,348 on
4/03/00 collateralized by $3,505,000 U.S Treasury Note,
5.625% due 12/31/02 with a value of $3,476,522 $3,406,000 3,406,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $3,406,000) 3,406,000
-----------
TOTAL INVESTMENTS--100.8%
(IDENTIFIED COST $80,736,302) @ 95,488,473
Liabilities, Less Cash and Other Assets--(0.8%) (798,829)
-----------
NET ASSETS--100% $94,689,644
============
</TABLE>
x See Note 1.
* Non-income producing security.
@ At March 31, 2000, the net unrealized appreciation on investments based on
cost of $80,736,302 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 $18,652,982 and $3,900,811, respectively, resulting in net
unrealized appreciation of $14,752,171.
See accompanying notes to financial statements
64
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
-------------------------------------------------------------------------------------------
COMMON STOCKS-95.6% OF NET ASSETS
<S> <C> <C>
AEROSPACE/DEFENSE--1.2%
Alliant Techsystems, Inc. * 3,700 $ 217,838
Newport News Shipbuilding, Inc. 10,800 326,700
------------
544,538
------------
AUTO & RELATED--1.5%
Oshkosh Truck Corp. 9,900 307,519
Tower Automotive, Inc. * 14,500 237,437
Wabash National Corp. 8,500 118,469
------------
663,425
------------
BANKS/SAVINGS & LOANS--4.1%
Chittenden Corp. 5,800 172,188
City National Corp. 8,900 299,819
Commerce Bancorp, Inc. 6,595 244,015
Commercial Federal Corp. 12,200 202,825
Dime Bancorp, Inc. 8,800 162,800
First Midwest Bancorp, Inc. 10,450 253,412
Hudson United Bancorp 10,918 236,784
Wilmington Trust Corp. 5,300 257,712
------------
1,829,555
------------
BROADCASTING--1.0%
Adelphia Communications Corp. Class A * 4,800 235,200
Regent Communications, Inc. * 18,200 225,225
------------
460,425
------------
BUSINESS SERVICES--0.8%
Deluxe Corp. 10,300 272,950
Progress Software Corp. * 3,500 82,031
------------
354,981
------------
CHEMICALS--0.3%
Dionex Corp. * 4,600 151,513
------------
CHEMICALS--MAJOR--0.5%
IMC Global, Inc. 14,700 215,906
------------
CHEMICALS--SPECIALTY--6.5%
Cambrex Corp. 5,700 247,950
Cuno, Inc. * 10,700 290,238
Cytec Industries, Inc. * 11,700 358,312
Dexter Corp. 4,600 243,800
Ferro Corp. 12,900 229,781
Great Lakes Chemical Corp. 6,900 234,600
Olin Corp. 16,500 292,875
OM Group, Inc. 7,100 323,050
Scotts Co. * 10,100 424,200
Spartech Corp. 7,200 247,500
------------
2,892,306
------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
-------------------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
COMMERCIAL SERVICES--6.2%
ACNielson Corp. * 6,600 $ 148,500
ADVO, Inc. * 12,200 305,000
Burns International Services Corp. * 22,700 238,350
Charles River Associates, Inc. * 4,500 87,469
Cheap Tickets, Inc. * 9,500 134,187
Harte-Hanks, Inc. 14,000 317,625
L90, Inc. * 10,100 191,900
Manpower, Inc. 8,000 284,000
Modis Professional Services, Inc. * 14,400 178,200
NetRatings, Inc. * 3,000 74,813
R.H. Donnelley Corp. 27,500 467,500
United Stationers, Inc. * 9,400 335,462
------------
2,763,006
------------
COMMUNICATIONS EQUIPMENT--3.4%
C-COR.net Corp. * 4,800 235,200
Davox Corp. * 8,900 238,075
Inter-Tel, Inc. 4,700 128,663
P-Com, Inc. * 8,100 149,850
PairGain Technologies, Inc. * 25,900 484,006
Tekelec * 6,900 256,162
------------
1,491,956
------------
COMPUTER HARDWARE--0.8%
National Instruments Corp. * 2,900 136,119
Telxon Corp. 12,700 223,044
------------
359,163
------------
COMPUTER SERVICES--2.3%
Ciber, Inc. * 8,900 182,450
Complete Business Solutions, Inc. * 10,400 232,700
Fargo Electronics * 12,100 145,956
Filenet Corp. * 8,600 255,850
IntraNet Solutions, Inc. * 2,100 96,600
Wind River Systems, Inc. * 2,900 105,125
------------
1,018,681
------------
COMPUTER SOFTWARE--3.7%
3DO Co. * 10,200 98,813
Aspen Technology, Inc. * 8,300 335,112
Hyperion Solutions Corp. * 7,000 227,500
Informix Corp. * 20,200 342,137
J.D. Edwards & Co. * 6,600 214,913
Manugistics Group, Inc. * 3,500 178,500
MAPICS, Inc. * 16,400 261,375
------------
1,658,350
------------
</TABLE>
66
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
-------------------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
CONSUMER PRODUCTS--0.7%
Fossil, Inc. * 14,100 $ 330,469
------------
CONTAINERS--0.5%
CoorsTek, Inc. * 5,300 213,325
------------
DATA PROCESSING SERVICES--0.2%
Information Resources, Inc. * 12,400 99,200
------------
ELECTRICAL EQUIPMENT--2.5%
Hadco Corp. * 7,200 465,300
Sensormatic Electronics Corp. * 6,100 136,869
SpeedFam-IPEC, Inc. * 8,700 172,912
Varian Semiconductor Equipment Associates, Inc. * 5,600 356,300
------------
1,131,381
------------
ELECTRONIC COMPONENTS--3.1%
CTS Corp. 5,900 336,300
DSP Group, Inc. * 5,200 343,200
SCI Systems, Inc. * 5,300 285,206
Vishay Intertechnology, Inc. * 7,800 433,875
------------
1,398,581
------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--3.9%
Actel Corp. * 8,500 303,344
Dallas Semiconductor Corp. 7,700 270,462
DuPont Photomasks, Inc. * 3,000 173,813
Integrated Device Technology, Inc. * 8,100 320,962
International Rectifier Corp. * 5,500 209,688
REMEC, Inc. * 9,000 454,500
------------
1,732,769
------------
ELECTRONIC MEASURING INSTRUMENTS--2.0%
Cerprobe Corp. * 20,500 306,219
Robotic Vision Systems, Inc. * 19,600 313,600
Tektronix, Inc. 4,800 268,800
------------
888,619
------------
ENTERTAINMENT--0.7%
CEC Entertainment, Inc. * 10,950 297,019
------------
ENVIRONMENTAL SERVICES--1.1%
American States Water Co. 6,100 181,475
Tetra Tech, Inc. * 12,775 303,406
------------
484,881
------------
FINANCIAL SERVICES--3.4%
Affiliated Managers Group, Inc. * 4,600 218,500
AmeriCredit Corp. * 15,900 259,369
DVI, Inc. * 4,700 66,975
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
-------------------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
FINANCIAL SERVICES--CONTINUED
eSPEED, Inc. Class A * 3,600 $ 188,550
Federated Investors, Inc. Class B 13,400 365,987
Heller Financial, Inc. 9,400 217,375
Investment Technology Group, Inc. * 6,000 211,500
------------
1,528,256
------------
FOOD--PACKAGED & MISCELLANEOUS--1.7%
Corn Products International, Inc. 11,200 269,500
International Multifoods Corp. 8,000 107,000
Michael Foods, Inc. 17,900 375,900
------------
752,400
------------
FOREST & PAPER PRODUCTS--0.4%
Chesapeake Corp. * 2,600 76,863
Ennis Business Forms, Inc. 11,100 80,475
------------
157,338
------------
FREIGHT TRANSPORTATION--1.3%
Atlas Air, Inc. * 6,000 164,250
GATX Corp. 10,400 395,200
------------
559,450
------------
HEALTH CARE--BIOTECHNOLOGY--1.6%
Gilead Sciences, Inc. * 2,600 164,775
Medicis Pharmaceutical Corp. Class A * 6,100 244,000
Myriad Genetics, Inc. * 1,700 102,425
PathoGenesis Corp. * 8,800 200,200
------------
711,400
------------
HEALTH CARE--DRUGS--0.4%
Covance, Inc. * 15,600 167,700
------------
HEALTH CARE--MEDICAL TECHNOLOGY--5.0%
Beckman Coulter, Inc. 5,400 346,612
Conmed Corp. * 17,300 433,581
EndoSonics Corp. * 31,400 198,213
IDEXX Laboratories, Inc. * 4,800 111,900
Meridian Diognostic, Inc. 18,000 155,250
Respironics, Inc. * 22,200 319,125
Theragenics Corp. * 13,400 179,225
Varian Medical Systems, Inc. 10,600 483,625
------------
2,227,531
------------
HEALTH CARE--SERVICES--1.8%
Health Management Associates, Inc. Class A * 19,600 279,300
Magellan Health Services, Inc. * 20,300 97,694
Per-Se Technologies, Inc. * 17,166 100,850
Renal Care Group, Inc. * 15,600 338,325
------------
816,169
------------
</TABLE>
68
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
-------------------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
HOME BUILDERS--0.5%
D.R. Horton, Inc. 17,200 $ 224,675
------------
HOME PRODUCTS--0.8%
Alberto-Culver Co. Class A 7,200 157,500
Furniture Brands International, Inc. * 11,300 212,581
------------
370,081
------------
INSURANCE--3.4%
Annuity and Life Re (Holdings) Ltd. 11,200 291,200
Arthur J. Gallagher & Co. 8,400 273,000
CNA Surety Corp. 9,500 132,406
Protective Life Corp. 10,500 333,375
Radian Group, Inc. 4,700 223,838
Trigon Healthcare, Inc. * 7,400 264,550
------------
1,518,369
------------
LODGING & HOTEL--0.4%
MeriStar Hospitality Corp. 10,253 178,787
------------
MACHINERY--1.0%
Gardner Denver, Inc. * 11,900 223,869
Milacron, Inc. 15,100 218,006
------------
441,875
------------
MANUFACTURING--3.6%
Diebold, Inc. 7,500 206,250
Harman International Industries, Inc. 5,200 312,000
Monaco Coach Corp. * 8,900 169,100
National Service Industries, Inc. 8,100 170,606
Pentair, Inc. 6,700 248,319
SPX Corp. * 3,100 353,206
UNOVA, Inc. * 11,100 149,850
------------
1,609,331
------------
METALS & MINING--1.0%
Harsco Corp. 9,600 277,800
Worthington Industries, Inc. 14,600 180,675
------------
458,475
------------
OFFICE EQUIPMENT--1.2%
National Computer Systems, Inc. 5,700 289,275
School Specialty, Inc. * 12,000 258,000
------------
547,275
------------
OIL & GAS DRILLING EQUIPMENT--3.7%
Cooper Cameron Corp. * 4,800 321,000
Maverick Tube Corp. * 7,700 249,769
Patterson Energy, Inc. * 8,000 254,000
Santa Fe International Corp. 9,300 344,100
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
-------------------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
OIL & GAS DRILLING EQUIPMENT--CONTINUED
Tidewater, Inc. 7,900 $ 251,318
Veritas DGC, Inc. * 8,400 236,250
------------
1,656,437
------------
OIL & GAS EXPLORATION--0.7%
Newfield Exploration Co. * 8,700 306,675
------------
OIL & GAS REFINING--0.5%
Valero Energy Corp. 7,300 223,563
------------
PUBLISHING--1.0%
Houghton Mifflin Co. 6,700 284,331
John Wiley & Son, Inc. Class A 9,600 172,800
------------
457,131
------------
REAL ESTATE INVESTMENT TRUSTS--2.2%
Avalonbay Communities, Inc. 6,900 252,712
Liberty Property Trust 11,900 284,856
Pacific Gulf Properties, Inc. 9,300 182,513
Prentiss Properties Trust 10,600 236,513
------------
956,594
------------
RESTAURANTS--2.3%
Morrison Management Specialists, Inc. 17,800 493,950
Ruby Tuesday, Inc. 8,100 141,750
Wendy's International, Inc. 19,300 389,619
------------
1,025,319
------------
RETAIL--FOOD & DRUG--0.7%
Sonic Corp. * 11,500 313,375
------------
RETAIL--GENERAL--0.3%
Michaels Stores, Inc. * 3,100 126,325
------------
RETAIL--SPECIALTY--2.5%
Casey's General Stores, Inc. 23,000 250,125
Charming Shoppes, Inc. * 23,000 130,812
Genesco, Inc. * 3,800 49,875
J. Baker, Inc. 18,200 127,400
Men's Wearhouse, Inc. * 10,800 319,950
Pier 1 Imports, Inc. 22,300 228,575
------------
1,106,737
------------
TELECOMMUNICATIONS--2.2%
DSL.net, Inc. * 4,800 105,900
Intermedia Communications, Inc. * 5,000 241,563
ITC DeltaCom, Inc. * 9,500 338,437
TALK.com, Inc. * 16,900 270,400
------------
956,300
------------
</TABLE>
70
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES VALUE x
-------------------------------------------------------------------------------------------
COMMON STOCKS-CONTINUED
<S> <C> <C>
TEXTILE & APPAREL--1.8%
Liz Claiborne, Inc. 8,800 $ 403,150
Russell Corp. 17,900 256,194
Springs Industries, Inc. 3,600 136,800
------------
796,144
------------
UTILITIES--3.2%
AGL Resources, Inc. 8,400 154,350
Alliant Energy Corp. 9,200 280,025
New Jersey Resources Corp. 5,200 222,300
NSTAR 7,500 315,000
SIGCORP, Inc. 12,300 307,500
Washington Gas Light Co. 5,500 149,531
------------
1,428,706
------------
TOTAL COMMON STOCKS
(Identified Cost $37,337,561) 42,602,467
------------
<CAPTION>
FACE
AMOUNT
-------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENT-4.6% OF NET ASSETS
<S> <C> <C>
COMMERCIAL PAPER--4.6%
Associates Corp. of North America, 6.190%, 4/03/00 $2,060,995 2,060,995
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $2,060,995) 2,060,995
------------
TOTAL INVESTMENTS--100.2%
(IDENTIFIED COST $39,398,556) @ 44,663,462
Liabilities, Less Cash and Other Assets--(0.2%) (79,229)
------------
NET ASSETS--100% $44,584,233
============
</TABLE>
x See Note 1.
* Non-income producing security.
@ At March 31, 2000, the net unrealized appreciation on investments based on
cost of $39,398,556 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 $7,319,166 and $2,054,260, respectively, resulting in net
unrealized appreciation of $5,264,906.
See accompanying notes to financial statements.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
72
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
CALIFORNIA TAX- CORE FIXED
FREE INCOME FIXED INCOME INCOME
FUND FUND FUND
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments at value $14,617,466 $21,174,268 $384,531,742
Cash 663 816 601
Receivable for:
Securities sold 0 0 868,765
Dividend and interest 233,346 311,305 6,465,681
Due from the adviser (Note 3) 289 256 0
Other assets (Note 1H) 0 2,516 0
----------- ----------- ------------
14,851,764 21,489,161 391,866,789
----------- ----------- ------------
LIABILITIES
Payable for:
Securities purchased 0 1,273,221 1,285,163
Fund shares redeemed 0 0 81,000
Accrued expenses:
Management fees (Note 3) 202 193 5,337
Trustee's fees (Note 3A) 114 114 114
Administrative fees 790 725 11,573
Other 32,171 37,579 71,426
----------- ----------- ------------
33,277 1,311,832 1,454,613
----------- ----------- ------------
NET ASSETS $14,818,487 $20,177,329 $390,412,176
=========== =========== ============
Net Assets consist of:
Capital paid in 14,928,938 21,217,928 399,993,392
Undistributed (or Distributions in
excess of) net investment income 20,395 408,161 7,608,794
Accumulated net realized gain (loss) (59,004) (792,716) (4,356,706)
Unrealized appreciation (depreciation)
on investments and foreign currency - net* (71,842) (656,044) (12,833,304)
----------- ----------- ------------
NET ASSETS $14,818,487 $20,177,329 $390,412,176
=========== =========== ============
Shares of beneficial interest outstanding,
no par value 1,468,132 2,008,273 32,632,482
=========== =========== ============
Net asset value and redemption price per share
(Net assets/shares of beneficial interest
outstanding) $ 10.09 $ 10.05 $ 11.96
Identified cost of investments $14,689,308 $21,830,312 $397,361,178
=========== =========== ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HIGH YIELD INTERMEDIATE INVESTMENT GRADE
FIXED INCOME DURATION FIXED FIXED INCOME PROVIDENT
FUND INCOME FUND FUND FUND
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments at value $33,000,968 $15,737,339 $156,857,938 $22,992,541
Cash 654 86,295 20,057 643
Receivable for:
Securities sold 879,561 0 58,307 1,590,826
Dividend and interest 493,819 259,509 2,780,788 11,090
Due from the adviser (Note 3) 228 221 53 197
Other assets (Note 1H) 0 0 0 0
----------- ----------- ----------- ------------
34,375,230 16,083,364 159,717,143 24,595,297
----------- ----------- ----------- ------------
LIABILITIES
Payable for:
Securities purchased 741,925 0 292,272 489,410
Fund shares redeemed 0 0 0 0
Accrued expenses:
Management fees (Note 3) 552 176 1,744 326
Trustee's fees (Note 3A) 114 89 114 121
Administrative fees 1,252 532 5,202 1,174
Other 33,514 28,774 45,258 26,805
----------- ----------- ----------- ------------
777,357 29,571 344,590 517,836
----------- ----------- ----------- ------------
NET ASSETS $33,597,873 $16,053,793 $159,372,553 $24,077,461
=========== =========== =========== ============
Net Assets consist of:
Capital paid in 40,011,445 16,772,367 165,368,744 19,037,606
Undistributed (or Distributions in
excess of) net investment income 686,259 6,719 75,875 46,627
Accumulated net realized gain (loss) (5,311,033) (102,777) 717,553 3,213,692
Unrealized appreciation (depreciation)
on investments and foreign currency - net* (1,788,798) (622,516) (6,789,619) 1,779,536
----------- ----------- ----------- ------------
NET ASSETS $33,597,873 $16,053,793 $159,372,553 $24,077,461
=========== =========== =========== ============
Shares of beneficial interest outstanding,
no par value 4,032,995 1,697,203 14,263,275 2,211,829
=========== =========== =========== ============
Net asset value and redemption price per share
(Net assets/shares of beneficial interest
outstanding) $ 8.33 $ 9.46 $ 11.17 $ 10.89
Identified cost of investments $34,787,973 $16,359,855 $163,644,942 $21,213,005
=========== =========== =========== ============
<PAGE>
<CAPTION>
SMALL COMPANY SMALL COMPANY
GROWTH VALUE
FUND FUND
-------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments at value $95,488,473 $44,663,462
Cash 788 0
Receivable for:
Securities sold 1,832,721 509,102
Dividend and interest 449 33,211
Due from the adviser (Note 3) 0 238
Other assets (Note 1H) 0 0
----------- -----------
97,322,431 45,206,013
----------- -----------
LIABILITIES
Payable for:
Securities purchased 2,622,617 601,627
Fund shares redeemed 0 0
Accrued expenses:
Management fees (Note 3) 1,877 889
Trustee's fees (Note 3A) 626 317
Administrative fees 778 1,173
Other 6,889 17,774
----------- -----------
2,632,787 621,780
----------- -----------
NET ASSETS $94,689,644 $44,584,233
=========== ============
Net Assets consist of:
Capital paid in 66,889,017 40,278,128
Undistributed (or Distributions in
excess of) net investment income (154,449) 64,228
Accumulated net realized gain (loss) 13,202,905 (1,023,029)
Unrealized appreciation (depreciation)
on investments and foreign currency - net* 14,752,171 5,264,906
----------- -----------
NET ASSETS $94,689,644 $44,584,233
=========== ============
Shares of beneficial interest outstanding,
no par value 4,427,665 4,176,659
=========== ============
Net asset value and redemption price per share
(Net assets/shares of beneficial interest
outstanding) $ 21.39 $ 10.67
Identified cost of investments $80,736,302 $39,398,556
=========== ============
</TABLE>
74
* NET OF CAPITAL GAIN WITHHOLDING TAXES OF $1,784 FOR THE HIGH YIELD FIXED
INCOME FUND.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
CALIFORNIA TAX- CORE FIXED
FREE INCOME FIXED INCOME INCOME
FUND FUND FUND
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends* $ 0 $ 0 $ 404,245
Interest 441,559 837,755 14,971,891
----------- ----------- ------------
441,559 837,755 15,376,136
----------- ----------- ------------
Expenses
Management fees (Note 3) 41,792 47,248 872,949
Trustee's fees and expenses (Note 3A) 1,238 1,238 1,238
Administrative fees 3,214 4,598 71,744
Custodian and accounting fees 24,858 25,944 78,228
Transfer agent fees 9,226 6,200 11,959
Audit and tax services fees 8,282 8,282 13,781
Registration fees 5,710 8,147 15,249
Amortization of organization
expenses (Note 1H) 0 1,200 0
Other expenses 5,831 5,668 18,662
----------- ----------- ------------
Total expenses 100,151 108,525 1,083,810
Less expenses waived and reimbursed by the
investment adviser (Note 3) (45,821) (43,525) 0
----------- ----------- ------------
Net expenses 54,330 65,000 1,083,810
----------- ----------- ------------
Net investment income (loss) 387,229 772,755 14,292,326
----------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investments and
foreign currency (58,955) (726,476) (3,137,150)
Change in unrealized appreciation
(depreciation) on investments and foreign
currency ** (104,421) 203,055 10,156,608
----------- ----------- ------------
Net realized gain (loss) and change
in unrealized appreciation (depreciation) (163,376) (523,421) 7,019,458
----------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 223,853 $ 249,334 $ 21,311,784
=========== =========== ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HIGH YIELD INTERMEDIATE INVESTMENT GRADE
FIXED INCOME DURATION FIXED FIXED INCOME
FUND INCOME FUND FUND
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends* $ 104,858 $ 0 $ 80,932
Interest 1,486,785 534,182 5,813,929
----------- ----------- -----------
1,591,643 534,182 5,894,861
----------- ----------- -----------
Expenses
Management fees (Note 3) 82,893 30,091 297,730
Trustee's fees and expenses (Note 3A) 1,238 1,238 1,238
Administrative fees 5,673 3,154 30,796
Custodian and accounting fees 28,720 23,380 50,956
Transfer agent fees 4,384 3,165 6,990
Audit and tax services fees 13,230 8,213 12,679
Registration fees 7,528 6,670 13,701
Amortization of organization
expenses (Note 1H) 0 0 0
Other expenses 6,089 5,649 13,057
----------- ----------- -----------
Total expenses 149,755 81,560 427,147
Less expenses waived and reimbursed by the
investment adviser (Note 3) (46,140) (40,184) (17,769)
----------- ----------- -----------
Net expenses 103,615 41,376 409,378
----------- ----------- -----------
Net investment income (loss) 1,488,028 492,806 5,485,483
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investments and
foreign currency (1,445,610) (18,452) 778,824
Change in unrealized appreciation (depreciation)
on investments and foreign currency ** 2,494,831 (85,768) 1,944,250
----------- ----------- -----------
Net realized gain (loss) and change in unrealized
appreciation (depreciation) 1,049,221 (104,220) 2,723,074
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 2,537,249 $ 388,586 $ 8,208,557
=========== =========== ===========
<PAGE>
<CAPTION>
SMALL COMPANY SMALL COMPANY
PROVIDENT GROWTH VALUE
FUND FUND FUND
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends* $ 109,573 $ 4,000 $ 268,199
Interest 57,144 94,966 78,913
------------ ----------- ----------
166,717 98,966 347,112
------------ ----------- ----------
Expenses
Management fees (Note 3) 56,143 211,375 150,554
Trustee's fees and expenses (Note 3A) 1,238 1,582 921
Administrative fees 5,019 9,272 8,992
Custodian and accounting fees 23,058 22,704 49,251
Transfer agent fees 3,160 5,806 2,304
Audit and tax services fees 8,268 8,282 8,282
Registration fees 7,607 7,577 7,577
Amortization of organization
expenses (Note 1H) 0 0 0
Other expenses 6,104 4,334 9,197
------------ ----------- ----------
Total expenses 110,597 270,932 237,078
Less expenses waived and reimbursed by the
investment adviser (Note 3) (37,612) (17,517) (56,413)
------------ ----------- ----------
Net expenses 72,985 253,415 180,665
------------ ----------- ----------
Net investment income (loss) 93,732 (154,449) 166,447
------------ ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investments and
foreign currency 3,390,716 13,604,156 (859,381)
Change in unrealized appreciation (depreciation)
on investments and foreign currency ** 1,128,832 12,763,615 7,473,582
------------ ----------- ----------
Net realized gain (loss) and change in unrealized
appreciation (depreciation) 4,519,548 26,367,771 6,614,201
------------ ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 4,613,280 $26,213,322 $6,780,648
=========== =========== ==========
</TABLE>
* NET OF FOREIGN WITHHOLDING TAXES OF $1,065 AND $1,950 FOR THE HIGH YIELD
FIXED INCOME AND PROVIDENT FUNDS, RESPECTIVELY.
** NET OF CAPITAL GAIN WITHHOLDING TAXES OF $1,784 FOR THE HIGH YIELD FIXED
INCOME FUND.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
76
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
CALIFORNIA TAX-FREE INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
----------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income $ 387,229 $ 902,820
Net realized gain (loss) on investments
and foreign currency (58,955) 43,213
Change in unrealized appreciation
(depreciation) on investments
and foreign currency (104,421) (828,427)
------------- --------------
Increase (decrease) in net assets from
operations 223,853 117,606
------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (366,834) (904,671)
Net realized gain on investments (38,667) 0
------------- --------------
Total distributions (405,501) (904,671)
------------- --------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 99,670 3,611,000
Net asset value of shares issued in connection
with the reinvestment of distributions 101,383 138,121
Cost of shares redeemed (3,872,582) (3,908,509)
------------- --------------
Increase (decrease) in net assets derived from
capital share transactions (3,671,529) (159,388)
------------- --------------
Total increase (decrease) in net assets (3,853,177) (946,453)
NET ASSETS
Beginning of period 18,671,664 19,618,117
------------- --------------
End of period $ 14,818,487 $ 18,671,664
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 20,395 $ 0
============= =============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares 9,464 345,658
Issued in connection with the reinvestment of
distributions 10,123 13,260
Redeemed (385,680) (377,055)
------------- --------------
Net change (366,093) (18,137)
============= =============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
CORE FIXED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
----------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income $ 772,755 $ 1,292,164
Net realized gain (loss) on investments
and foreign currency (726,476) 16,357
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 203,055 (1,581,472)
------------- --------------
Increase (decrease) in net assets from
operations 249,334 (272,951)
------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (1,358,125) (1,133,613)
Net realized gain on investments (2,230) (267,462)
------------- --------------
Total distributions (1,360,355) (1,401,075)
------------- --------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 4,311,498 5,175,627
Net asset value of shares issued in connection
with the reinvestment of distributions 1,360,355 1,401,075
Cost of shares redeemed (6,967,564) (1,659,371)
------------- --------------
Increase (decrease) in net assets derived from
capital share transactions (1,295,711) 4,917,331
------------- --------------
Total increase (decrease) in net assets (2,406,732) 3,243,305
NET ASSETS
Beginning of period 22,584,061 19,340,756
------------- --------------
End of period $ 20,177,329 $ 22,584,061
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 408,161 $ 993,531
============= =============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares 422,669 477,171
Issued in connection with the reinvestment of
distributions 137,133 131,433
Redeemed (691,789) (151,500)
------------- --------------
Net change (131,987) 457,104
============= =============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
78
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FIXED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
----------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income $ 14,292,326 $ 23,071,408
Net realized gain (loss) on investments
and foreign currency (3,137,150) (919,226)
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 10,156,608 (7,370,250)
------------- --------------
Increase (decrease) in net assets from
operations 21,311,784 14,781,932
------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (24,292,627) (16,709,531)
Net realized gain on investments 0 (5,298,144)
------------- --------------
Total distributions (24,292,627) (22,007,675)
------------- --------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 79,217,646 48,387,100
Net asset value of shares issued in connection
with the reinvestment of distributions 23,996,635 22,007,676
Cost of shares redeemed (7,828,621) (13,490,272)
------------- --------------
Increase (decrease) in net assets derived from
capital share transactions 95,385,660 56,904,504
------------- --------------
Total increase (decrease) in net assets 92,404,817 49,678,761
NET ASSETS
Beginning of period 298,007,359 248,328,598
------------- --------------
End of period $390,412,176 $298,007,359
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 7,608,794 $ 17,609,095
============= =============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares 6,569,743 3,955,911
Issued in connection with the reinvestment of
distributions 2,086,664 1,865,057
Redeemed (662,918) (1,094,141)
------------- --------------
Net change 7,993,489 4,726,827
============= =============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
HIGH YIELD FIXED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
----------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income $ 1,488,028 $ 3,010,948
Net realized gain (loss) on investments
and foreign currency (1,445,610) (4,779,121)
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 2,494,831 5,374,813
------------- --------------
Increase (decrease) in net assets from
operations 2,537,249 3,606,640
------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (2,737,451) (3,648,962)
Net realized gain on investments 0 (816,575)
------------- --------------
Total distributions (2,737,451) (4,465,537)
------------- --------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 6,588,000 7,037,798
Net asset value of shares issued in connection
with the reinvestment of distributions 1,725,978 4,155,972
Cost of shares redeemed 0 (13,592,930)
------------- --------------
Increase (decrease) in net assets derived from
capital share transactions 8,313,978 (2,399,160)
------------- --------------
Total increase (decrease) in net assets 8,113,776 (3,258,057)
NET ASSETS
Beginning of period 25,484,097 28,742,154
------------- --------------
End of period $ 33,597,873 $ 25,484,097
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 686,259 $ 1,935,682
============= =============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares 785,306 827,073
Issued in connection with the reinvestment of
distributions 212,821 536,948
Redeemed 0 (1,744,921)
------------- --------------
Net change 998,127 (380,900)
============= =============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
80
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
INTERMEDIATE DURATION FIXED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
----------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income $ 492,806 $ 842,151
Net realized gain (loss) on investments
and foreign currency (18,452) (44,334)
Change in unrealized appreciation
(depreciation) on investments
and foreign currency (85,768) (332,285)
------------- -------------
Increase (decrease) in net assets from
operations 388,586 465,532
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (494,435) (926,674)
Net realized gain on investments 0 0
------------- -------------
Total distributions (494,435) (926,674)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 1,294,129 3,601,888
Net asset value of shares issued in connection
with the reinvestment of distributions 494,435 926,675
Cost of shares redeemed 0 (750,000)
------------- -------------
Increase (decrease) in net assets derived from
capital share transactions 1,788,564 3,778,563
------------- -------------
Total increase (decrease) in net assets 1,682,715 3,317,421
NET ASSETS
Beginning of period 14,371,078 11,053,657
------------- -------------
End of period $ 16,053,793 $ 14,371,078
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 6,719 $ 8,348
============= =============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares 137,527 368,852
Issued in connection with the reinvestment of
distributions 52,336 95,915
Redeemed 0 (77,882)
------------- -------------
Net change 189,863 386,885
============= =============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
INVESTMENT GRADE FIXED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
----------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income $ 5,485,483 $ 9,570,038
Net realized gain (loss) on investments
and foreign currency 778,824 594,799
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 1,944,250 (4,148,573)
------------- -------------
Increase (decrease) in net assets from
operations 8,208,557 6,016,264
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (5,449,381) (9,637,617)
Net realized gain on investments (601,905) (1,310,699)
------------- -------------
Total distributions (6,051,286) (10,948,316)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 7,779,261 27,961,468
Net asset value of shares issued in connection
with the reinvestment of distributions 4,738,424 8,537,952
Cost of shares redeemed (2,059,877) (3,893,882)
------------- -------------
Increase (decrease) in net assets derived from
capital share transactions 10,457,808 32,605,538
------------- -------------
Total increase (decrease) in net assets 12,615,079 27,673,486
NET ASSETS
Beginning of period 146,757,474 119,083,988
------------- -------------
End of period $159,372,553 $146,757,474
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 75,875 $ 39,773
============= =============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares 706,297 2,475,635
Issued in connection with the reinvestment of
distributions 433,057 751,273
Redeemed (189,212) (344,017)
------------- -------------
Net change 950,142 2,882,891
============= =============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
82
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
PROVIDENT FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999
----------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income $ 93,732 $ 69,172
Net realized gain (loss) on investments
and foreign currency 3,390,716 7,610,544
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 1,128,832 (1,265,437)
------------- -------------
Increase (decrease) in net assets from
operations 4,613,280 6,414,279
------------- -------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (114,840) (153,835)
Net realized gain on investments (7,731,471) (6,056,473)
------------- -------------
Total distributions (7,846,311) (6,210,308)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 81,293 0
Net asset value of shares issued in connection
with the reinvestment of distributions 7,846,311 6,210,308
Cost of shares redeemed (2,502,700) (5,438,463)
------------- -------------
Increase (decrease) in net assets derived from
capital share transactions 5,424,904 771,845
------------- -------------
Total increase (decrease) in net assets 2,191,873 975,816
NET ASSETS
Beginning of period 21,885,588 20,909,772
------------- -------------
End of period $ 24,077,461 $ 21,885,588
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 46,627 $ 67,735
============= =============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares 5,661 0
Issued in connection with the reinvestment of
distributions 827,670 506,550
Redeemed (247,498) (418,901)
------------- -------------
Net change 585,833 87,649
============= =============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
SMALL COMPANY GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999*
----------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income (loss) $ (154,449) $ (18,300)
Net realized gain (loss) on investments
and foreign currency 13,604,156 (401,251)
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 12,763,615 1,988,556
------------- --------------
Increase (decrease) in net assets from
operations 26,213,322 1,569,005
------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income 0 0
Net realized gain on investments 0 0
------------- --------------
Total distributions 0 0
------------- --------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 51,126,432 16,104,885
Net asset value of shares issued in connection
with the reinvestment of distributions 0 0
Cost of shares redeemed (324,000) 0
------------- --------------
Increase (decrease) in net assets derived from
capital share transactions 50,802,432 16,104,885
------------- --------------
Total increase (decrease) in net assets 77,015,754 17,673,890
NET ASSETS
Beginning of period 17,673,890 0
------------- --------------
End of period $ 94,689,644 $ 17,673,890
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ (154,449) $ 0
============= =============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares 2,930,571 1,514,677
Issued in connection with the reinvestment of
distributions 0 0
Redeemed (17,583) 0
------------- --------------
Net change 2,912,988 1,514,677
============= =============
</TABLE>
* COMMENCEMENT OF OPERATIONS ON MAY 7, 1999.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
84
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2000 SEPTEMBER 30,
(UNAUDITED) 1999*
----------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment income $ 166,447 $ 63,093
Net realized gain (loss) on investments
and foreign currency (859,381) 132,497
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 7,473,582 (2,208,676)
------------- --------------
Increase (decrease) in net assets from
operations 6,780,648 (2,013,086)
------------- --------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (165,312) 0
Net realized gain on investments (1,282,171) 0
------------- --------------
Total distributions (1,447,483) 0
------------- --------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 3,734 39,904,541
Net asset value of shares issued in connection
with the reinvestment of distributions 1,357,039 0
Cost of shares redeemed (1,160) 0
------------- --------------
Increase (decrease) in net assets derived from
capital share transactions 1,359,613 39,904,541
------------- --------------
Total increase (decrease) in net assets 6,692,778 37,891,455
NET ASSETS
Beginning of period 37,891,455 0
------------- --------------
End of period $ 44,584,233 $ 37,891,455
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 64,228 $ 63,093
============= =============
NUMBER OF SHARES OF THE FUND:
Issued from the sale of shares 387 4,031,719
Issued in connection with the reinvestment of
distributions 144,673 0
Redeemed (120) 0
------------- --------------
Net change 144,940 4,031,719
============= =============
</TABLE>
* COMMENCEMENT OF OPERATIONS ON JUNE 30, 1999.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
86
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
CALIFORNIA TAX-FREE INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 2000
--------------
(UNAUDITED)
--------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 10.18
-------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.24
Net realized and unrealized gain (loss) on investments (0.09)
-------
Total from investment operations 0.15
-------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.22)
Distributions from net realized capital gains (0.02)
-------
Total distributions (0.24)
-------
Net asset value, end of period $ 10.09
=======
Total return (%)(a) 1.6
Net assets, end of period (000) $14,818
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65
Gross expenses (%)(c) 1.20
Net investment income (loss) (%)(c) 4.63
Portfolio turnover (%) 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS
YEAR ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
1999 1998
--------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 10.59 $ 10.41
------- -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.47 0.35
Net realized and unrealized gain (loss) on investments (0.41) 0.19
------- -------
Total from investment operations 0.06 0.54
------- -------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.47) (0.36)
Distributions from net realized capital gains 0.00 0.00
------- -------
Total distributions (0.47) (0.36)
------- -------
Net asset value, end of period $ 10.18 $ 10.59
======= =======
Total return (%)(a) 0.6 5.3
Net assets, end of period (000) $18,672 $19,618
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65 0.65
Gross expenses (%)(c) 1.19 1.33
Net investment income (loss) (%)(c) 4.50 4.55
Portfolio turnover (%) 14 12
<PAGE>
<CAPTION>
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) 7.3 4.1 4.9
Net assets, end of period (000) $16,822 $13,460 $7,880
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65 0.65 0.65
Gross expenses (%)(c) 1.41 1.26 1.62
Net investment income (loss) (%)(c) 4.62 4.58 5.30
Portfolio turnover (%) 24 18 18
</TABLE>
* COMMENCEMENT OF OPERATIONS ON JUNE 1, 1995.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER EXPENSES. PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
88
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
CORE FIXED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 2000
--------------
(UNAUDITED)
---------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 10.55
-------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.35
Net realized and unrealized gain (loss) on investments (0.24)
-------
Total from investment operations 0.11
-------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.61)
Distributions from net realized capital gains 0.00(d)
-------
Total distributions (0.61)
-------
Net asset value, end of period $ 10.05
=======
Total return (%)(a) 1.1
Net assets, end of period (000) $20,177
Ratios to average net assets:
Net expenses (%)(b)(c) 0.55
Gross expenses (%)(c) 0.92
Net investment income (loss) (%)(c) 6.53
Portfolio turnover (%) 49
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS
YEAR ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
1999 1998
--------------------------------------------
<C> <C>
$ 11.49 $ 10.66
Net asset value, beginning of period ------- -------
INCOME FROM INVESTMENT OPERATIONS-- 0.61 0.50
Net investment income (loss) (0.76) 0.33
Net realized and unrealized gain (loss) on investments ------- -------
(0.15) 0.83
Total from investment operations ------- -------
LESS DISTRIBUTIONS-- (0.64) 0.00
Dividends from net investment income (0.15) 0.00(d)
Distributions from net realized capital gains ------- -------
(0.79) 0.00
Total distributions ------- -------
$ 10.55 $ 11.49
Net asset value, end of period ======= =======
(1.4) 7.8
Total return (%)(a) $22,584 $19,341
Net assets, end of period (000)
Ratios to average net assets: 0.65 0.65
Net expenses (%)(b)(c) 1.15 1.27
Gross expenses (%)(c) 6.14 6.08
Net investment income (loss) (%)(c) 29 45
Portfolio turnover (%)
<PAGE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------
1997 1996*
------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 10.14 $10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.39 0.40
Net realized and unrealized gain (loss) on investments 0.55 0.13
------- -------
Total from investment operations 0.94 0.53
LESS DISTRIBUTIONS--
Dividends from net investment income (0.39) (0.39)
Distributions from net realized capital gains (0.03) (0.00)
------- -------
Total distributions (0.42) (0.39)
------- -------
Net asset value, end of period $ 10.66 $10.14
======= ======
Total return (%)(a) 9.2 5.3
Net assets, end of period (000) $16,110 $6,271
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65 0.65
Gross expenses (%)(c) 1.80 1.46
Net investment income (loss) (%)(c) 6.34 6.21
Portfolio turnover (%) 59 34
</TABLE>
* COMMENCEMENT OF OPERATIONS ON APRIL 24, 1996.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER EXPENSES. PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) AMOUNT IS LESS THAN $0.01 PER SHARE.
90
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FIXED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 2000
--------------
(UNAUDITED)
-------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 12.09
-------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.34
Net realized and unrealized gain (loss) on investments 0.36
-------
Total from investment operations 0.70
-------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.83)
Distributions from net realized capital gains 0.00
-------
Total distributions (0.83)
-------
Net asset value, end of period $ 11.96
=======
Total return (%)(a) 6.0
Net assets, end of period (000) $390,412
Ratios to average net assets:
Net expenses (%)(b)(c) 0.62
Gross expenses (%)(c) 0.62
Net investment income (loss) (%)(c) 8.19
Portfolio turnover (%) 8
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS
YEAR ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30
------------- ------------
1999 1998
-------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 12.47 $ 12.59
------- -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.97 0.57
Net realized and unrealized gain (loss) on investments (0.27) (0.62)
------- -------
Total from investment operations 0.70 (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 $ 12.09 $ 12.47
======= =======
Total return (%)(a) 5.8 (0.4)
Net assets, end of period (000) $298,007 $248,329
Ratios to average net assets:
Net expenses (%)(b)(c) 0.64 0.65
Gross expenses (%)(c) 0.64 0.68
Net investment income (loss) (%)(c) 8.30 7.37
Portfolio turnover (%) 22 31
<PAGE>
<CAPTION>
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) 13.4 9.8 27.4
Net assets, end of period (000) $ 173,048 $91,746 $58,332
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65 0.62 0.75
Gross expenses (%)(c) 0.70 0.62 0.83
Net investment income (loss) (%)(c) 7.56 7.97 8.15
Portfolio turnover (%) 41 90 76
</TABLE>
* COMMENCEMENT OF OPERATIONS ON JANUARY 17, 1995.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER EXPENSES. PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
92
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
HIGH YIELD FIXED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 2000
--------------
(UNAUDITED)
---------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 8.40
------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.43
Net realized and unrealized gain (loss) on investments 0.40
------
Total from investment operations 0.83
------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.90)
Distributions from net realized capital gains 0.00
------
Total distributions (0.90)
------
Net asset value, end of period $ 8.33
=======
Total return (%)(a) 10.2
Net assets, end of period (000) $33,598
Ratios to average net assets:
Net expenses (%)(b)(c) 0.75
Gross expenses (%)(c) 1.08
Net investment income (loss) (%)(c) 10.77
Portfolio turnover (%) 18
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS
YEAR ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- --------------
1999 1998
-------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 8.41 $ 10.04
------ -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.95 0.77
Net realized and unrealized gain (loss) on investments 0.35 (2.31)
------ -------
Total from investment operations 1.30 (1.54)
------ -------
LESS DISTRIBUTIONS--
Dividends from net investment income (1.07) 0.00
Distributions from net realized capital gains (0.24) (0.09)
------ -------
Total distributions (1.31) (0.09)
------ -------
Net asset value, end of period $ 8.40 $ 8.41
======= =======
Total return (%)(a) 16.8 (15.5)
Net assets, end of period (000) $25,484 $28,742
Ratios to average net assets:
Net expenses (%)(b)(c) 0.75 0.75
Gross expenses (%)(c) 1.15 1.12
Net investment income (loss) (%)(c) 12.22 10.69
Portfolio turnover (%) 57 39
<PAGE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-------------------------------
1997 1996*
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 10.16 $10.00
------- ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.70 0.56
Net realized and unrealized gain (loss) on investments 0.20 0.21
------- ------
Total from investment operations 0.90 0.77
------- -------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.71) (0.56)
Distributions from net realized capital gains (0.31) (0.05)
------- ------
Total distributions (1.02) (0.61)
------- ------
Net asset value, end of period $ 10.04 $10.16
======= =======
Total return (%)(a) 8.8 7.7
Net assets, end of period (000) $28,872 $3,100
Ratios to average net assets:
Net expenses (%)(b)(c) 0.75 0.75
Gross expenses (%)(c) 1.17 2.73
Net investment income (loss) (%)(c) 8.82 9.42
Portfolio turnover (%) 94 9
</TABLE>
* COMMENCEMENT OF OPERATIONS ON JUNE 5, 1996.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER EXPENSES. PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
94
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
INTERMEDIATE DURATION FIXED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED PERIOD ENDED
MARCH 31, 2000 SEPTEMBER 30, SEPTEMBER 30,
-------------- ------------- --------------
(UNAUDITED) 1999 1998*
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 9.53 $ 9.87 $ 10.00
------ ------ -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.31 0.61 0.41
Net realized and unrealized gain (loss)
on investments (0.07) (0.26) (0.22)
------ ------ -------
Total from investment operations 0.24 0.35 0.19
------ ------ -------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.31) (0.69) (0.32)
Distributions from net realized capital gains 0.00 0.00 0.00
------ ------ -------
Total distributions (0.31) (0.69) (0.32)
------ ------ -------
Net asset value, end of period $ 9.46 $ 9.53 $ 9.87
======= ======= =======
Total return (%)(a) 2.6 3.6 1.9
Net assets, end of period (000) $16,054 $14,371 $11,054
Ratios to average net assets:
Net expenses (%)(b)(c) 0.55 0.55 0.55
Gross expenses (%)(c) 1.08 1.18 1.33
Net investment income (loss) (%)(c) 6.55 6.27 6.05
Portfolio turnover (%) 8 35 74
</TABLE>
* COMMENCEMENT OF OPERATIONS ON JANUARY 28, 1998.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER EXPENSES. PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
96
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
INVESTMENT GRADE FIXED INCOME FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 2000
--------------
(UNAUDITED)
----------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 11.02
-------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.40
Net realized and unrealized gain (loss) on investments 0.20
-------
Total from investment operations 0.60
-------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.40)
Distributions from net realized capital gains (0.05)
-------
Total distributions (0.45)
-------
Net asset value, end of period $ 11.17
=======
Total return (%)(a) 5.6
Net assets, end of period (000) $159,373
Ratios to average net assets:
Net expenses (%)(b)(c) 0.55
Gross expenses (%)(c) 0.57
Net investment income (loss) (%)(c) 7.37
Portfolio turnover (%) 11
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS
YEAR ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, YEAR ENDED DECEMBER 31,
------------- ------------- ------------------------------
1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.42 $ 12.06 $ 11.81 $ 11.56 $ 9.57
------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.81 0.61 0.83 0.80 0.75
Net realized and unrealized gain (loss) on investments (0.27) (0.60) 0.37 0.40 2.05
------- ------- ------- ------- ------
Total from investment operations 0.54 0.01 1.20 1.20 2.80
------- ------- ------- ------- ------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.82) (0.63) (0.81) (0.79) (0.76)
Distributions from net realized capital gains (0.12) (0.02) (0.14) (0.16) (0.05)
------- ------- ------- ------- ------
Total distributions (0.94) (0.65) (0.95) (0.95) (0.81)
------- ------- ------- ------- ------
Net asset value, end of period $ 11.02 $ 11.42 $ 12.06 $ 11.81 $ 11.56
======= ======= ======== ======= =======
Total return (%)(a) 4.8 0.0 10.6 10.9 30.3
Net assets, end of period (000) $146,757 $119,084 $ 82,964 $51,752 $21,816
Ratios to average net assets:
Net expenses (%)(b)(c) 0.55 0.55 0.55 0.55 0.55
Gross expenses (%)(c) 0.59 0.65 0.69 0.70 0.94
Net investment income (loss) (%)(c) 7.15 6.85 6.97 7.27 7.61
Portfolio turnover (%) 18 31 58 74 22
</TABLE>
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER EXPENSES. PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
98
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
PROVIDENT FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 2000
--------------
(UNAUDITED)
-------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 13.46
-------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.05
Net realized and unrealized gain (loss) on investments 2.23
-------
Total from investment operations 2.28
-------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.07)
Distributions from net realized capital gains (4.78)
-------
Total distributions (4.85)
-------
Net asset value, end of period $ 10.89
=======
Total return (%)(a) 22.3
Net assets, end of period (000) $24,077
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65
Gross expenses (%)(c) 0.98
Net investment income (loss) (%)(c) 0.83
Portfolio turnover (%) 186
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS
YEAR ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, YEAR ENDED DECEMBER 31,
------------- -------------- --------------------------------
1999 1998 1997 1996 1995*
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.59 $ 12.26 $ 11.48 $ 10.02 $10.00
------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.04 0.10 0.10 0.10 0.02
Net realized and unrealized gain (loss) on investments 3.87 1.23 1.68 1.47 0.02
------- ------- ------- ------- ------
Total from investment operations 3.91 1.33 1.78 1.57 0.04
------- ------- ------- ------- ------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.10) 0.00 (0.10 (0.11) (0.02)
Distributions from net realized capital gains (3.94) 0.00 (0.90 0.00 0.00
------- ------- ------- ------- ------
Total distributions (4.04) 0.00 (1.00 (0.11) (0.02)
------- ------- ------- ------- ------
Net asset value, end of period $ 13.46 $ 13.59 $ 12.26 $ 11.48 $10.02
======= ======= ======= ======= ======
Total return (%)(a) 31.7 10.9 15.7 15.6 0.4
Net assets, end of period (000) $21,886 $20,910 $38,544 $21,906 $7,609
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65 0.65 0.65 0.65 0.65
Gross expenses (%)(c) 1.00 1.03 0.89 0.89 1.43
Net investment income (loss) (%)(c) 0.30 0.74 0.87 1.10 1.36
Portfolio turnover (%) 250 96 109 97 22
</TABLE>
* COMMENCEMENT OF OPERATIONS ON OCTOBER 1, 1995.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER EXPENSES. PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
100
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
SMALL COMPANY GROWTH FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, 2000 SEPTEMBER 30,
-------------- -------------
(UNAUDITED) 1999*
---------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 11.67 $ 10.00
======= =======
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.03) (0.01)
Net realized and unrealized gain (loss) on investments 9.75 1.68
------- -------
Total from investment operations 9.72 1.67
------- -------
LESS DISTRIBUTIONS--
Dividends from net investment income 0.00 0.00
Distributions from net realized capital gains 0.00 0.00
------- -------
Total distributions 0.00 0.00
------- -------
Net asset value, end of period $ 21.39 $ 11.67
======= =======
Total return (%)(a) 83.3 16.7
Net assets, end of period (000) $94,690 $17,674
Ratios to average net assets:
Net expenses (%)(b)(c) 0.90 0.90
Gross expenses (%)(c) 0.96 2.17
Net investment income (loss) (%)(c) (0.55) (0.51)
Portfolio turnover (%) 112 56
</TABLE>
* COMMENCEMENT OF OPERATIONS ON MAY 7, 1999.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER EXPENSES. PERIODS LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
MARCH 31, 2000 SEPTEMBER 30,
-------------- -------------
(UNAUDITED) 1999*
---------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 9.40 $ 10.00
------ -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.04 0.02
Net realized and unrealized gain (loss) on investments 1.59 (0.62)
------ -------
Total from investment operations 1.63 (0.60)
------ -------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.04) 0.00
Distributions from net realized capital gains (0.32) 0.00
------ -------
Total distributions (0.36) 0.00
------ -------
Net asset value, end of period $ 10.67 $ 9.40
======= =======
Total return (%)(a) 18.0 (6.0)
Net assets, end of period (000) $44,584 $37,891
Ratios to average net assets:
Net expenses (%)(b)(c) 0.90 0.90
Gross expenses (%)(c) 1.18 1.31
Net investment income (loss) (%)(c) 0.83 0.82
Portfolio turnover (%) 66 36
</TABLE>
* COMMENCEMENT OF OPERATIONS ON JUNE 30, 1999.
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS
ADVISORY FEES AND/OR BORNE OTHER EXPENSES. PERIODS LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
(b) THE ADVISER HAS AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS REIMBURSEMENT THE FUND'S RATIO OF EXPENSES WOULD
HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
102
<PAGE>
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
MARCH 31, 2000 (UNAUDITED)
1. Loomis Sayles Investment Trust (the "Trust") consists of nine 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 Fixed Income Fund
Loomis Sayles High Yield Fixed Income Fund
Loomis Sayles Intermediate Duration Fixed Income Fund
Loomis Sayles Investment Grade Fixed Income Fund
Loomis Sayles Provident Fund
Loomis Sayles Small Company Growth Fund
Loomis Sayles Small Company Value 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. 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
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
<PAGE>
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 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 counter parties 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.
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
104
<PAGE>
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
contracts and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar. At March 31, 2000, there were no open forward
foreign currency exchange contracts.
E. SECURITY TRANSACTIONS, RELATED INVESTMENT INCOME AND EXPENSES -- Security
transactions are accounted for on the trade date (the date the buy or sell is
executed). Dividend income is recorded on the ex-dividend date and interest
income is recorded on the accrual basis. Interest income is increased by the
accretion of discount. Discounts on zero coupon bonds, original issue discount
bonds, step bonds and payment in kind bonds are accreted according to the
effective interest method. 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,
Fixed Income, High Yield Fixed Income, Provident, Small Company Growth and Small
Company Value 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 securities contributed or redeemed-in-kind, foreign currency
transactions, capital loss carryforwards, deferred
<PAGE>
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.
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, 2000 were as follows:
<TABLE>
<CAPTION>
PURCHASES
------------------------------------
U.S. GOVERNMENT OTHER
--------------- ------------
<S> <C> <C>
California Tax-Free Income Fund $ 0 $ 0
Core Fixed Income Fund 5,707,501 5,326,167
Fixed Income Fund 8,528,232 99,078,821
High Yield Fixed Income Fund 0 9,978,561
Intermediate Duration Fixed Income Fund 581,388 2,335,394
Investment Grade Fixed Income Fund 0 21,224,092
Provident Fund 0 36,888,590
Small Company Growth Fund 0 107,613,648
Small Company Value Fund 0 26,284,691
<CAPTION>
SALES
------------------------------------
U.S. GOVERNMENT OTHER
--------------- ------------
<S> <C> <C>
California Tax-Free Income Fund $ 0 $ 3,825,586
Core Fixed Income Fund 6,853,438 5,829,500
Fixed Income Fund 15,812,028 12,405,167
High Yield Fixed Income Fund 767,938 4,096,921
Intermediate Duration Fixed Income Fund 844,670 378,592
Investment Grade Fixed Income Fund 5,453,756 10,063,902
Provident Fund 0 36,727,403
Small Company Growth Fund 0 58,910,225
Small Company Value Fund 0 24,748,283
</TABLE>
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES -- During the six
months ended March 31, 2000, 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. Metropolitan Life
Insurance Company is a wholly owned subsidiary of MetLife, Inc., a publicly
traded company. Separate management agreements for each Fund in effect during
the six months ended March 31, 2000 provided for fees at the following annual
percentage rate of each Fund's average daily net assets indicated below. Loomis
Sayles has contractually agreed, until February 1, 2001, to reduce its advisory
fees and/or bear other expenses, to the
106
<PAGE>
extent necessary to limit the total operating expenses of the Funds to the
following percentage rate of the 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 (1) .............. 0.35% 0.50%
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%
Provident Fund .......................... 0.50% 0.65%
Small Company Growth Fund ............... 0.75% 0.90%
Small Company Value Fund ................ 0.75% 0.90%
</TABLE>
(1) ON NOVEMBER 9, 1999, THE BOARD OF TRUSTEES OF THE TRUST VOTED EFFECTIVE
DECEMBER 1, 1999 TO LOWER THE CORE FIXED INCOME FUND'S MANAGEMENT FEE FROM
0.50% TO 0.35% THEREBY DECREASING THE MAXIMUM OPERATING EXPENSE RATIO FROM
0.65% TO 0.50%.
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 Core Fixed Income Fund may invest up to 10%, the Fixed
Income Fund may invest up to 35%, the High Yield Fixed Income Fund will invest
at least 65%, and the Investment Grade Fixed Income Fund may invest up to 10% of
its total 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
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.
<PAGE>
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108
<PAGE>
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<PAGE>
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110
<PAGE>
LOOMIS, SAYLES FUNDS
ONE FINANCIAL CENTER
BOSTON, MA 02111
TELEPHONE (888)226-9699
www.loomissayles.com
