<PAGE>
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
[LOGO] LOOMIS SAYLES INVESTMENT TRUST
ANNUAL REPORT
SEPTEMBER 30, 2000
<PAGE>
TABLE OF CONTENTS
Letter from the President 1
Fund and Manager Reviews 3
Portfolio of Investments 21
Statements of Assets and Liabilities 77
Statements of Operations 79
Statements of Changes in Net Assets 81
Financial Highlights 91
Notes to Financial Statements 107
2000 U.S. Tax and Distribution Information 114
Shareholder Meeting Results 115
Report of Independent Accountant 116
<PAGE>
LETTER FROM THE PRESIDENT
[PHOTO OF DANIEL J. FUSS]
DANIEL J. FUSS
PRESIDENT AND
PORTFOLIO MANAGER
DEAR SHAREHOLDERS:
The last twelve months ended September 30, 2000 gave investors a volatile stock
market and an improving bond market. Valuation concerns triggered a sharp
sell-off in the large-cap growth sector of the stock market, while a slowing
economy helped bolster the bond market.
The solid twelve-month return for the stock market (13.28 percent as measured by
the S&P 500 Index) somewhat masks the severe volatility and sector rotations
that started to occur during the year. Growth stocks, led by the powerful
technology sector, remained strong through the first half of the year. But, in
mid-March sentiment shifted quickly, as valuation and earnings concerns
triggered a sharp downturn among technology stocks and other growth sectors.
Eager to find good valuations and real earnings, investors rediscovered value
stocks.
For most of the year, the bond market was faced with the anomaly of an inverted
Treasury yield curve. Short-term rates were on the rise, due to the Federal
Reserve Board's tightening policy, and long-term rates were on the decline, due
to the Treasury Department's buyback of long-term debt. The situation started to
stabilize during the summer, as signs of a slowing economy put the Federal
Reserve Board into a holding pattern.
Among the spread sectors, higher-quality, long-term bonds were the leading
performers for the year. Credit spreads remained volatile during the year, and
we took advantage of widening spreads to purchase attractive securities.
Overall, we continued to benefit from our research-driven insights into security
and sector selections.
<PAGE>
Looking ahead, the key factor influencing the financial markets is still with
us: peace. There are some situations to worry about as we look around the world,
but nothing requiring a large build-up of the military either here or elsewhere.
Another potential problem--stock market leverage--actually appears to have
lightened. The impact of rising energy prices and their influence on economies
and markets is still playing out. In fact, the situation may help the bond
market by causing economic slowing that more than offsets the inflationary
impact of higher energy prices. Of course, the central banks could respond by
increasing the money supply, and inflation would re-emerge. So far, this seems
unlikely, but it is worth watching.
Sincerely,
/s/ Dan 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
twelve-month period ended September 30, 2000, the Fund had a total return of
4.63%, as compared to the Fund's benchmark, the Lehman Brothers 5 Year Municipal
Bond Index, total return of 4.82%. For the same period, the average California
intermediate municipal debt fund, as measured by Lipper Inc., had a total return
of 5.78%. The under-performance is related to the fourth quarter sells in a
weaker interest rate environment. The Fund still shows steady performance over
longer time frames.
In the third quarter 2000, we witnessed a growing consensus that the Federal
Reserve Board either was finished, or close to being finished, raising interest
rates. Several factors contributed to this sentiment, including favorable
inflation figures (other than oil prices), strong productivity gains, and Alan
Greenspan's acceptance of the "new-era" economy--that is, one in which growth
can continue without igniting inflation.
The California Tax-Free Income Fund holds solid well-performing issues that
still maintain a very good cash flow. During the most recent quarter and looking
ahead, we have been extending modestly to the ten to fifteen year sector because
of the rich levels in the one to ten year sector. There has been a smaller
calendar of municipal offerings for the first three quarters of 2000, mainly
tied to the strong economy and higher tax receipts by the states and
municipalities. We are beginning to see a build up in the new municipal offering
calendar, and the November elections show more propositions which will
necessitate additional offerings.
We believe that the Fund will maintain its higher coupon income and be
comfortably positioned in the five to ten year average maturity range.
KENT P. NEWMARK AND ROBERT K. PAYNE ARE THE PORTFOLIO MANAGERS FOR THE LOOMIS
SAYLES CALIFORNIA TAX-FREE INCOME FUND.
<PAGE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 3 Years 5 Years Inception(a)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND 4.63% 4.13% 4.97% 5.02%
Lipper California Intermediate Municipal Debt Funds Index(b) 5.77% 4.25% 5.04% 5.10%
Lehman Brothers 5 Year Municipal Bond Index(c) 4.82% 4.36% 4.80% 5.00%
</TABLE>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
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>
6/1/1995 $10,000 $10,000 $10,000
6/30/1995 $9,930 $9,921 $10,017
7/31/1995 $10,048 $10,027 $10,139
8/31/1995 $10,136 $10,136 $10,231
9/30/1995 $10,189 $10,195 $10,257
10/31/1995 $10,313 $10,314 $10,320
11/30/1995 $10,438 $10,432 $10,414
12/31/1995 $10,493 $10,494 $10,468
1/31/1996 $10,595 $10,594 $10,572
2/29/1996 $10,575 $10,557 $10,543
3/31/1996 $10,466 $10,430 $10,469
4/30/1996 $10,435 $10,422 $10,468
5/31/1996 $10,419 $10,418 $10,464
6/30/1996 $10,516 $10,488 $10,525
7/31/1996 $10,598 $10,593 $10,602
8/31/1996 $10,597 $10,592 $10,612
9/30/1996 $10,687 $10,685 $10,699
10/31/1996 $10,791 $10,794 $10,792
11/30/1996 $10,969 $10,963 $10,932
12/31/1996 $10,929 $10,924 $10,911
1/31/1997 $10,948 $10,944 $10,949
2/28/1997 $11,020 $11,019 $11,028
3/31/1997 $10,920 $10,917 $10,908
4/30/1997 $10,994 $10,970 $10,955
5/31/1997 $11,122 $11,121 $11,090
6/30/1997 $11,220 $11,219 $11,174
7/31/1997 $11,468 $11,477 $11,371
8/31/1997 $11,402 $11,388 $11,313
9/30/1997 $11,501 $11,507 $11,414
10/31/1997 $11,546 $11,539 $11,473
11/30/1997 $11,613 $11,585 $11,508
12/31/1997 $11,722 $11,734 $11,607
1/31/1998 $11,834 $11,841 $11,713
2/28/1998 $11,857 $11,853 $11,732
3/31/1998 $11,857 $11,837 $11,742
4/30/1998 $11,823 $11,766 $11,693
5/31/1998 $11,960 $11,933 $11,833
6/30/1998 $11,994 $11,968 $11,874
7/31/1998 $12,041 $12,004 $11,915
8/31/1998 $12,191 $12,182 $12,062
9/30/1998 $12,342 $12,361 $12,186
10/31/1998 $12,354 $12,346 $12,221
11/30/1998 $12,377 $12,380 $12,243
12/31/1998 $12,401 $12,390 $12,286
1/31/1999 $12,519 $12,534 $12,416
2/28/1999 $12,507 $12,478 $12,404
3/31/1999 $12,531 $12,499 $12,415
4/30/1999 $12,555 $12,511 $12,452
5/31/1999 $12,507 $12,434 $12,401
6/30/1999 $12,375 $12,273 $12,261
7/31/1999 $12,435 $12,335 $12,337
8/31/1999 $12,368 $12,293 $12,332
9/30/1999 $12,411 $12,330 $12,377
10/31/1999 $12,332 $12,230 $12,346
11/30/1999 $12,424 $12,344 $12,419
12/31/1999 $12,351 $12,257 $12,378
1/31/2000 $12,370 $12,261 $12,373
2/29/2000 $12,450 $12,370 $12,413
3/31/2000 $12,606 $12,555 $12,526
4/30/2000 $12,562 $12,476 $12,499
5/31/2000 $12,556 $12,483 $12,495
6/30/2000 $12,764 $12,750 $12,724
7/31/2000 $12,884 $12,889 $12,857
8/31/2000 $12,966 $13,088 $12,999
9/30/2000 $12,985 $13,041 $12,974
</TABLE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 3 Years Registration(a)
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND 4.63% 4.13% 4.79%
Lipper California Intermediate Municipal Debt Funds Index(b) 5.77% 4.25% 5.20%
Lehman Brothers 5 Year Municipal Bond Index(c) 4.82% 4.36% 5.07%
</TABLE>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
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>
3/31/1997 $10,000 $10,000 $10,000
4/30/1997 $10,005 $10,049 $10,043
5/31/1997 $10,122 $10,188 $10,167
6/30/1997 $10,211 $10,277 $10,244
7/31/1997 $10,437 $10,514 $10,424
8/31/1997 $10,377 $10,432 $10,371
9/30/1997 $10,467 $10,541 $10,463
10/31/1997 $10,508 $10,570 $10,518
11/30/1997 $10,569 $10,612 $10,550
12/31/1997 $10,667 $10,749 $10,641
1/31/1998 $10,770 $10,847 $10,738
2/28/1998 $10,791 $10,858 $10,755
3/31/1998 $10,791 $10,843 $10,765
4/30/1998 $10,760 $10,778 $10,719
5/31/1998 $10,885 $10,931 $10,848
6/30/1998 $10,916 $10,963 $10,885
7/31/1998 $10,958 $10,996 $10,923
8/31/1998 $11,095 $11,159 $11,057
9/30/1998 $11,232 $11,323 $11,171
10/31/1998 $11,243 $11,309 $11,204
11/30/1998 $11,264 $11,341 $11,224
12/31/1998 $11,286 $11,350 $11,263
1/31/1999 $11,393 $11,482 $11,383
2/28/1999 $11,383 $11,430 $11,371
3/31/1999 $11,404 $11,449 $11,381
4/30/1999 $11,426 $11,461 $11,416
5/31/1999 $11,382 $11,390 $11,369
6/30/1999 $11,262 $11,243 $11,240
7/31/1999 $11,317 $11,299 $11,310
8/31/1999 $11,256 $11,261 $11,305
9/30/1999 $11,295 $11,294 $11,346
10/31/1999 $11,223 $11,203 $11,318
11/30/1999 $11,306 $11,307 $11,385
12/31/1999 $11,241 $11,228 $11,347
1/31/2000 $11,257 $11,231 $11,342
2/29/2000 $11,331 $11,331 $11,380
3/31/2000 $11,473 $11,501 $11,483
4/30/2000 $11,433 $11,429 $11,458
5/31/2000 $11,427 $11,434 $11,455
6/30/2000 $11,616 $11,679 $11,664
7/31/2000 $11,725 $11,806 $11,787
8/31/2000 $11,800 $11,989 $11,916
9/30/2000 $11,817 $11,946 $11,894
</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. A portion of the Fund's income may be
subject to state taxes and/or the Federal alternative minimum tax.
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN
FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND RANKINGS
WOULD BE LOWER.
(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. SOURCE: LIPPER INC.
(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. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX.
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 twelve-month period ended September 30, 2000, the Fund had
a total return of 5.75%, as compared to the Fund's benchmark, the Merrill Lynch
Domestic Master Index, total return of 6.94%. For the same period, the average
corporate debt fund A-rated, as measured by Lipper Inc., had a total return of
5.36%. Almost all of the underperformance for the year period occurred in
January and February, when corporate bonds performed poorly versus Treasuries
amidst market concerns about overall credit quality and an inverting yield
curve.
Looking back on the year as a whole, the single most important event for the
domestic bond market was the sharp inversion of the Treasury yield curve. This
inversion was caused by the Federal Reserve Board raising the Federal Funds rate
in an effort to slow the white-hot economy and simultaneously buying back, on
behalf of the U.S. Treasury, longer-dated Treasury bonds as the federal budget
surplus continued to grow. Investors that were underweighted in Treasuries, as
we were, underperformed in this environment as the extra yield gained by
investing in corporate, mortgage-backed, and asset-backed securities was not
enough to make up for the superior price appreciation achieved in the Treasury
market.
Our strategy, through all of this, remains unchanged: utilize our extensive
research capabilities to build a portfolio with a significant yield advantage
and strong total return prospects relative to the index. This will naturally
lead us to emphasize sectors such as mortgage-backed securities, asset-backed
securities, and, most significantly, corporate bonds. Within that broad mandate,
our portfolio decisions have recently favored adding exposure to the high yield
sector in issues such as Adelphia Communications Corp., Charter Communications
Holdings, Host Marriott Corp., and Lyondell Chemical Co.
Currently, the portfolio is positioned to benefit from a reversal of the
generally poor environment we have seen in non-U.S. Treasury sectors over the
last three years. In light of this, we have a strong emphasis in intermediate
corporate bonds and historically high exposure to the mortgage-backed and
asset-backed sectors. The yield advantage over the index was roughly 80 basis
points and the duration of the portfolio is slightly less than that of the
market.
MICHAEL MILLHOUSE AND CRAIG SMITH ARE THE PORTFOLIO MANAGERS FOR THE LOOMIS
SAYLES CORE FIXED INCOME FUND.
<PAGE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 3 Years Inception(a)
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES CORE FIXED INCOME FUND 5.75% 5.03% 5.97%
Lipper Corporate Debt Funds A-Rated Index(b) 5.83% 4.67% 6.12%
Merrill Lynch Domestic Master Index(c) 6.94% 5.93% 6.90%
Merrill Lynch Corporate/Government Master Index(c) 6.72% 5.84% 6.81%
</TABLE>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles Lipper Corporate Merrill Lynch Merrill Lynch
Core Fixed Debt Funds Domestic Corporate/Government
Income Fund A-Rated Index Master Index Master Index
<S> <C> <C> <C> <C>
04/30/96 $10,000 $10,000 $10,000 $10,000
05/31/96 $9,930 $9,978 $9,981 $9,986
06/30/96 $10,060 $10,103 $10,107 $10,113
07/31/96 $10,060 $10,124 $10,136 $10,137
08/31/96 $10,030 $10,096 $10,121 $10,113
09/30/96 $10,210 $10,288 $10,294 $10,288
10/31/1996 $10,460 $10,539 $10,521 $10,524
11/30/1996 $10,680 $10,755 $10,704 $10,718
12/31/1996 $10,531 $10,634 $10,608 $10,604
01/31/97 $10,542 $10,650 $10,637 $10,618
02/28/97 $10,573 $10,687 $10,656 $10,630
03/31/97 $10,438 $10,540 $10,549 $10,521
04/30/97 $10,583 $10,689 $10,710 $10,677
05/31/97 $10,666 $10,788 $10,805 $10,769
06/30/97 $10,801 $10,934 $10,934 $10,900
07/31/97 $11,118 $11,286 $11,230 $11,231
08/31/97 $10,983 $11,143 $11,134 $11,104
09/30/97 $11,160 $11,333 $11,300 $11,282
10/31/1997 $11,326 $11,479 $11,466 $11,469
11/30/1997 $11,367 $11,533 $11,514 $11,518
12/31/1997 $11,502 $11,656 $11,632 $11,641
01/31/98 $11,653 $11,795 $11,786 $11,810
02/28/98 $11,620 $11,774 $11,776 $11,782
03/31/98 $11,642 $11,819 $11,820 $11,826
04/30/98 $11,696 $11,873 $11,878 $11,878
05/31/98 $11,815 $12,001 $11,996 $12,008
06/30/98 $11,933 $12,108 $12,100 $12,135
07/31/98 $11,934 $12,110 $12,126 $12,146
08/31/98 $11,999 $12,218 $12,322 $12,376
09/30/98 $12,398 $12,491 $12,611 $12,721
10/31/1998 $12,279 $12,333 $12,556 $12,651
11/30/1998 $12,376 $12,467 $12,616 $12,698
12/31/1998 $12,460 $12,508 $12,663 $12,750
01/31/99 $12,576 $12,614 $12,753 $12,842
02/28/99 $12,251 $12,334 $12,508 $12,519
03/31/99 $12,356 $12,415 $12,589 $12,598
04/30/99 $12,402 $12,456 $12,635 $12,639
05/31/99 $12,228 $12,314 $12,513 $12,501
06/30/99 $12,194 $12,254 $12,473 $12,464
07/31/99 $12,101 $12,199 $12,424 $12,428
08/31/99 $12,101 $12,166 $12,417 $12,419
09/30/99 $12,228 $12,282 $12,561 $12,533
10/31/1999 $12,252 $12,300 $12,599 $12,557
11/30/1999 $12,263 $12,309 $12,599 $12,552
12/31/1999 $12,193 $12,253 $12,542 $12,488
01/31/00 $12,168 $12,226 $12,509 $12,485
02/29/00 $12,267 $12,356 $12,661 $12,635
03/31/00 $12,365 $12,523 $12,834 $12,831
04/30/00 $12,304 $12,421 $12,791 $12,764
05/31/00 $12,242 $12,373 $12,783 $12,750
06/30/00 $12,538 $12,649 $13,043 $13,004
07/31/00 $12,661 $12,756 $13,160 $13,134
08/31/00 $12,857 $12,926 $13,348 $13,319
09/30/00 $12,931 $12,997 $13,433 $13,375
</TABLE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 3 Years Inception(a)
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES CORE FIXED INCOME FUND 5.75% 5.03% 5.89%
Lipper Corporate Debt Funds A-Rated Index(b) 5.83% 4.67% 6.17%
Merrill Lynch Domestic Master Index(c) 6.94% 5.93% 7.15%
Merrill Lynch Corporate/Government Master Index(c) 6.72% 5.84% 7.10%
</TABLE>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles Lipper Corporate Merrill Lynch Merrill Lynch
Core Fixed Debt Funds Domestic Corporate/Government
Income Fund A-Rated Index Master Index Master Index
<S> <C> <C> <C> <C>
03/31/97 $10,000 $10,000 $10,000 $10,000
04/30/97 $10,039 $10,141 $10,152 $10,148
05/31/97 $10,118 $10,235 $10,243 $10,236
06/30/97 $10,246 $10,374 $10,365 $10,361
07/31/97 $10,547 $10,708 $10,646 $10,675
08/31/97 $10,419 $10,572 $10,555 $10,554
09/30/97 $10,586 $10,753 $10,712 $10,724
10/31/1997 $10,744 $10,891 $10,870 $10,901
11/30/1997 $10,783 $10,942 $10,915 $10,948
12/31/1997 $10,911 $11,058 $11,026 $11,065
01/31/98 $11,054 $11,190 $11,173 $11,226
02/28/98 $11,024 $11,171 $11,163 $11,199
03/31/98 $11,044 $11,213 $11,205 $11,241
04/30/98 $11,095 $11,264 $11,260 $11,290
05/31/98 $11,208 $11,386 $11,371 $11,413
06/30/98 $11,320 $11,488 $11,471 $11,534
07/31/98 $11,321 $11,490 $11,495 $11,545
08/31/98 $11,382 $11,592 $11,680 $11,763
09/30/98 $11,761 $11,851 $11,955 $12,092
10/31/1998 $11,648 $11,701 $11,903 $12,025
11/30/1998 $11,741 $11,828 $11,960 $12,070
12/31/1998 $11,820 $11,867 $12,004 $12,119
01/31/99 $11,930 $11,967 $12,090 $12,206
02/28/99 $11,622 $11,702 $11,858 $11,899
03/31/99 $11,721 $11,779 $11,934 $11,974
04/30/99 $11,765 $11,817 $11,977 $12,013
05/31/99 $11,600 $11,683 $11,862 $11,882
06/30/99 $11,567 $11,626 $11,824 $11,847
07/31/99 $11,479 $11,574 $11,777 $11,813
08/31/99 $11,479 $11,542 $11,771 $11,804
09/30/99 $11,600 $11,652 $11,908 $11,913
10/31/1999 $11,622 $11,670 $11,944 $11,935
11/30/1999 $11,633 $11,678 $11,944 $11,930
12/31/1999 $11,566 $11,625 $11,890 $11,870
01/31/00 $11,543 $11,600 $11,858 $11,867
02/29/00 $11,636 $11,723 $12,002 $12,009
03/31/00 $11,730 $11,882 $12,167 $12,196
04/30/00 $11,671 $11,785 $12,125 $12,132
05/31/00 $11,613 $11,739 $12,118 $12,119
06/30/00 $11,893 $12,001 $12,364 $12,360
07/31/00 $12,010 $12,103 $12,475 $12,484
08/31/00 $12,197 $12,263 $12,653 $12,659
09/30/00 $12,267 $12,331 $12,734 $12,713
</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. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN
FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND RANKINGS
WOULD BE LOWER.
(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 MASTER 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 DEBT FUNDS A-RATED INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED FOR
THE REINVESTMENT OF CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS.
SOURCE: LIPPER INC.
(c) THE FUND CHANGED ITS BENCHMARK DURING THE YEAR ENDED SEPTEMBER 30, 2000 FROM
THE MERRILL LYNCH CORPORATE/GOVERNMENT MASTER INDEX TO THE MERRILL LYNCH
DOMESTIC MASTER INDEX ("INDEX"), WHICH IS AN UNMANAGED INDEX COMPRISED 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. IT IS NOT POSSIBLE TO INVEST DIRECTLY
IN AN INDEX. 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
twelve-month period ended September 30, 2000, the Fund had a total return of
5.93%, as compared to the Fund's benchmark, the Lehman Brothers
Government/Credit Bond Index, total return of 6.74%. For the same period, the
average corporate debt fund BBB-rated, as measured by Lipper Inc., had a total
return of 4.98%.
There were many questions about the broader bond market entering this past year,
starting with concerns over Y2K, then rising oil prices, and the Federal Reserve
Board trying to suppress fears of inflation. As we entered the new millennium,
investors faced new challenges, with an inverted Treasury curve, a loosening of
the Federal Reserve Board's monetary stance and a roller coaster equity market.
Now, as we enter the final quarter of 2000, fixed income managers face a
stabilizing but concerned bond environment. The past twelve months has seen a
flight to quality ensue as higher quality and longer maturity credits were able
to post significant returns. This was largely due to investors considering the
long-term risk factors in the high yield sector in conjunction with an abundance
of downgrades in this sector. The new shape of the Treasury curve, which has
flattened significantly, has yields on the short end higher than the long
portion due to an increase in buybacks on the hump of the yield curve and the
continued issuance of 30-year bonds. Overall, spreads have widened with the high
yield bond and Yankee bond (foreign issues denominated in U.S. dollars) sectors
experiencing most of the expansion. The frontrunners, however, over the same
time period have been convertible and emerging market securities. High yield
issues were the laggards as investors had to consider long-term risk factors,
and an abundance of corporate downgrades. Canadian issues were positive
contributors as the country has been able to sustain its growth relative to the
U.S. We believe that the Fund remains well diversified and focused on long-term
capital appreciation and current income. We believe that it also has excellent
call protection and upgrade potential.
We have not changed our outlook towards the current environment. Our belief is
that this is a good time to be in the corporate bond market. Gradually buying
discounted issues with fairly long maturities is an approach that we are
maintaining through this environment, both for the added yield and call
protection that they provide. We continue to concentrate on extracting value
through fundamental bond analysis in conjunction with relative value analysis.
We are cognizant of the current yield environment, the shape of curve and
economic fundamentals, but once again our approach to the market is one of
taking specific risk (i.e. bond picking) and our emphasis is on long-term
capital and price appreciation.
DANIEL J. FUSS IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES FIXED INCOME FUND.
<PAGE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 3 Years 5 Years Inception(a)
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES FIXED INCOME FUND 5.93% 4.08% 7.90% 10.53%
Lipper Corporate Debt Funds BBB-Rated Index(b) 5.29% 4.13% 5.78% 7.37%
Lehman Brothers Government/Credit Bond Index(c) 6.74% 5.82% 6.30% 7.63%
</TABLE>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles
Fixed Lipper Corporate Lehman Brothers
Income Debt Funds Government/Corp.
Fund BBB-Rated Index Bond 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
4/30/00 $17,241 $14,339 $14,465
5/31/00 $16,975 $14,230 $14,452
6/30/00 $17,508 $14,590 $14,747
7/31/00 $17,597 $14,652 $14,903
8/31/00 $17,952 $14,920 $15,113
9/30/00 $17,700 $14,962 $15,170
</TABLE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 3 Years Registration(a)
---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES FIXED INCOME FUND 5.93% 4.08% 6.38%
Lipper Corporate Debt Funds BBB-Rated Index(b) 5.29% 4.13% 5.89%
Lehman Brothers Government/Credit Bond Index(c) 6.74% 5.82% 7.09%
</TABLE>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles Lehman Brothers
Fixed Lipper Corporate Government/Corporate
Income Debt Funds Bond
Fund BBB-Rated Index Index
<S> <C> <C> <C>
3/31/1997 $10,000 $10,000 $10,000
4/30/1997 $10,016 $10,148 $10,146
5/31/1997 $10,261 $10,264 $10,241
6/30/1997 $10,481 $10,417 $10,364
7/31/1997 $10,959 $10,777 $10,681
8/31/1997 $10,743 $10,634 $10,561
9/30/1997 $11,058 $10,821 $10,727
10/31/1997 $11,083 $10,931 $10,899
11/30/1997 $11,166 $10,985 $10,956
12/31/1997 $11,173 $11,103 $11,071
1/31/1998 $11,306 $11,244 $11,227
2/28/1998 $11,403 $11,240 $11,205
3/31/1998 $11,572 $11,297 $11,239
4/30/1998 $11,616 $11,346 $11,296
5/31/1998 $11,625 $11,443 $11,417
6/30/1998 $11,634 $11,527 $11,533
7/31/1998 $11,533 $11,518 $11,542
8/31/1998 $10,748 $11,434 $11,768
9/30/1998 $11,123 $11,670 $12,104
10/31/1998 $11,007 $11,526 $12,019
11/30/1998 $11,596 $11,739 $12,090
12/31/1998 $11,586 $11,768 $12,120
1/31/1999 $11,781 $11,870 $12,206
2/28/1999 $11,547 $11,614 $11,916
3/31/1999 $11,927 $11,743 $11,975
4/30/1999 $12,297 $11,827 $12,005
5/31/1999 $12,024 $11,668 $11,881
6/30/1999 $11,956 $11,606 $11,844
7/31/1999 $11,781 $11,548 $11,811
8/31/1999 $11,684 $11,505 $11,802
9/30/1999 $11,771 $11,604 $11,908
10/31/1999 $11,801 $11,627 $11,939
11/30/1999 $11,878 $11,655 $11,932
12/31/1999 $12,021 $11,636 $11,860
1/31/2000 $11,979 $11,602 $11,856
2/29/2000 $12,344 $11,745 $12,005
3/31/2000 $12,480 $11,853 $12,179
4/30/2000 $12,146 $11,709 $12,119
5/31/2000 $11,958 $11,620 $12,108
6/30/2000 $12,334 $11,914 $12,355
7/31/2000 $12,397 $11,965 $12,486
8/31/2000 $12,647 $12,183 $12,663
9/30/2000 $12,470 $12,218 $12,710
</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 NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN
FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND RANKINGS
WOULD BE LOWER.
(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
CORPORATE DEBT FUNDS BBB-RATED INVESTMENT OBJECTIVE. RETURNS ARE ADJUSTED
FOR THE REINVESTMENT OF CAPITAL GAINS DISTRIBUTIONS AND INCOME DIVIDENDS.
SOURCE: LIPPER INC.
(c) LEHMAN BROTHERS GOVERNMENT/CREDIT 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. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. SOURCE:
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 twelve-month period ended September 30, 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 1.23%. For the same period, the average
high current yield fund, as measured by Lipper Inc., had a total return of
-.02%. Positive returns and outperformance can be attributed to convertibles
bonds and emerging markets securities, as well as successful issue and sector
selections.
The fixed income markets had numerous hurdles to overcome during the last twelve
months. As 1999 came to a close the market was inundated with concerns over Y2K,
rising oil prices, and a Federal Reserve Board trying to keep an economy from
overheating. As we entered the new millennium investors were challenged with an
inverted Treasury yield curve, an erratic equity market, and a loosening of the
Federal Reserve Board's monetary stance. Going into the fourth quarter 2000,
fixed income managers face a stabilizing but concerned bond environment. Over
the last twelve months a flight to quality ensued as higher quality and longer
maturity credits were able to post significant returns. This was due largely to
earnings and default warnings in the high yield sector. The new shape of the
Treasury curve, which has flattened significantly, has yields on the short end
higher than the long portion due to an increase in buybacks on the hump of the
yield curve and the continued issuance of 30-year bonds. The Latin American and
Asian sectors have stabilized politically and economically over the past year
with few exceptions. Canadian issues were also positive contributors as the
country has been able to sustain its growth relative to the U.S. We believe that
the Fund remains well diversified and focused on long-term capital appreciation
and current income. We believe it also has excellent call protection and
moderate upgrade potential.
We have not changed our outlook towards the current environment. Our belief is
that this is a good time to be in the corporate bond market. Gradually buying
discounted issues with fairly long maturities is an approach that we are
generally maintaining through this environment. We continue to concentrate on
extracting value through fundamental bond analysis in conjunction with relative
value analysis. We are cognizant of short-term technical market strains but we
remain long term in our approach. We are cognizant of the current yield
environment, the shape of curve and economic fundamentals, but once again our
approach to the market is one of taking specific risk (i.e. bond picking) and
our emphasis is on long-term capital and price appreciation.
DANIEL J. FUSS IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES HIGH YIELD FIXED
INCOME FUND.
<PAGE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 3 Years Inception(a)
----------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND 10.20% 1.63% 5.76%
Lipper High Current Yield Funds Index(b) -0.06% 1.14% 5.39%
Merrill Lynch High Yield Master Index(c) 1.23% 2.65% 6.07%
</TABLE>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles Lipper High Merrill Lynch
High Yield Current Yield High Yield
Fixed Income Funds Master
Fund Index Index
<S> <C> <C> <C>
6/30/1996 $10,000 $10,000 $10,000
7/31/1996 $9,970 $10,046 $10,068
8/31/1996 $10,110 $10,208 $10,172
9/30/1996 $10,380 $10,474 $10,390
10/31/1996 $10,440 $10,524 $10,504
11/30/1996 $10,740 $10,705 $10,716
12/31/1996 $10,764 $10,837 $10,799
1/31/1997 $10,817 $10,944 $10,882
2/28/1997 $10,732 $11,128 $11,034
3/31/1997 $10,552 $10,887 $10,912
4/30/1997 $10,689 $10,980 $11,036
5/31/1997 $11,007 $11,270 $11,258
6/30/1997 $11,219 $11,463 $11,430
7/31/1997 $11,781 $11,769 $11,704
8/31/1997 $11,770 $11,796 $11,684
9/30/1997 $12,130 $12,082 $11,877
10/31/1997 $11,770 $12,034 $11,956
11/30/1997 $11,823 $12,122 $12,069
12/31/1997 $11,715 $12,265 $12,184
1/31/1998 $11,878 $12,503 $12,365
2/28/1998 $12,112 $12,621 $12,416
3/31/1998 $12,497 $12,804 $12,523
4/30/1998 $12,462 $12,844 $12,583
5/31/1998 $12,123 $12,829 $12,670
6/30/1998 $11,843 $12,852 $12,733
7/31/1998 $11,699 $12,940 $12,806
8/31/1998 $9,922 $11,954 $12,253
9/30/1998 $9,898 $11,882 $12,278
10/31/1998 $9,887 $11,612 $12,076
11/30/1998 $10,834 $12,294 $12,626
12/31/1998 $10,676 $12,256 $12,630
1/31/1999 $10,937 $12,478 $12,755
2/28/1999 $10,868 $12,427 $12,658
3/31/1999 $11,377 $12,646 $12,767
4/30/1999 $12,092 $12,974 $12,966
5/31/1999 $11,748 $12,727 $12,876
6/30/1999 $11,927 $12,729 $12,852
7/31/1999 $11,831 $12,733 $12,871
8/31/1999 $11,583 $12,604 $12,746
9/30/1999 $11,556 $12,506 $12,692
10/31/1999 $11,831 $12,469 $12,617
11/30/1999 $12,106 $12,689 $12,762
12/31/1999 $12,383 $12,842 $12,829
1/31/2000 $12,337 $12,779 $12,765
2/29/2000 $12,719 $12,869 $12,776
3/31/2000 $12,734 $12,647 $12,597
4/30/2000 $12,612 $12,592 $12,602
5/31/2000 $12,321 $12,367 $12,463
6/30/2000 $12,673 $12,596 $12,676
7/31/2000 $12,658 $12,619 $12,768
8/31/2000 $13,086 $12,685 $12,923
9/30/2000 $12,734 $12,498 $12,848
</TABLE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 3 Years Registration(a)
---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND 10.20% 1.63% 5.03%
Lipper High Current Yield Funds Index(b) -0.06% 1.14% 4.02%
Merrill Lynch High Yield Master Index(c) 1.23% 2.65% 4.78%
</TABLE>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<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>
3/31/1997 $10,000 $10,000 $10,000
4/30/1997 $10,000 $10,085 $10,114
5/31/1997 $10,297 $10,352 $10,318
6/30/1997 $10,496 $10,529 $10,475
7/31/1997 $11,021 $10,810 $10,726
8/31/1997 $11,011 $10,835 $10,707
9/30/1997 $11,348 $11,097 $10,885
10/31/1997 $11,011 $11,054 $10,957
11/30/1997 $11,061 $11,134 $11,061
12/31/1997 $10,959 $11,265 $11,166
1/31/1998 $11,112 $11,484 $11,332
2/28/1998 $11,331 $11,592 $11,379
3/31/1998 $11,691 $11,760 $11,477
4/30/1998 $11,658 $11,797 $11,531
5/31/1998 $11,342 $11,784 $11,611
6/30/1998 $11,080 $11,805 $11,669
7/31/1998 $10,945 $11,885 $11,736
8/31/1998 $9,282 $10,980 $11,229
9/30/1998 $9,260 $10,914 $11,252
10/31/1998 $9,249 $10,666 $11,067
11/30/1998 $10,141 $11,292 $11,571
12/31/1998 $9,987 $11,257 $11,575
1/31/1999 $10,232 $11,461 $11,689
2/28/1999 $10,167 $11,415 $11,600
3/31/1999 $10,643 $11,616 $11,700
4/30/1999 $11,312 $11,916 $11,883
5/31/1999 $10,991 $11,690 $11,800
6/30/1999 $11,158 $11,692 $11,778
7/31/1999 $11,068 $11,695 $11,796
8/31/1999 $10,836 $11,577 $11,680
9/30/1999 $10,810 $11,487 $11,631
10/31/1999 $11,068 $11,453 $11,563
11/30/1999 $11,325 $11,655 $11,695
12/31/1999 $11,584 $11,795 $11,757
1/31/2000 $11,541 $11,738 $11,698
2/29/2000 $11,898 $11,821 $11,708
3/31/2000 $11,913 $11,616 $11,545
4/30/2000 $11,798 $11,565 $11,549
5/31/2000 $11,526 $11,360 $11,421
6/30/2000 $11,855 $11,570 $11,617
7/31/2000 $11,841 $11,591 $11,701
8/31/2000 $12,242 $11,651 $11,843
9/30/2000 $11,913 $11,480 $11,774
</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 NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT INVESTORS' SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA
REFLECTS CERTAIN FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS,
PERFORMANCE AND RANKINGS WOULD BE LOWER.
(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. SOURCE: LIPPER INC.
(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. IT IS NOT POSSIBLE TO INVEST DIRECTLY
IN AN INDEX. SOURCE: MERRILL LYNCH.
LOOMIS SAYLES INVESTMENT TRUST 10
<PAGE>
FUND AND MANAGER REVIEW
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 twelve-month period ended September 30, 2000, the Fund had
a total return of 6.89%, as compared to the Fund's benchmark, the Lehman
Brothers Government/Credit Intermediate Bond Index, total return of 6.25%. For
the same period, the average intermediate investment grade debt fund, as
measured by Lipper Inc., had a total return of 5.75%.
There were many questions about the broader bond market entering this past year,
starting with concerns over Y2K, then rising oil prices, and the Federal Reserve
Board trying to suppress fears of inflation. As we entered the new millennium,
investors faced new challenges, with an inverted Treasury curve, a loosening of
the Federal Reserve Board's monetary stance and a roller coaster equity market.
Now, as we enter the final quarter of 2000, fixed income managers face a
stabilizing but concerned bond environment. The past twelve months has seen a
flight to quality ensue as higher quality and longer maturity credits were able
to post significant returns. This was largely due to investors considering the
long-term risk factors in the high yield sector in conjunction with an abundance
of downgrades in this sector. The new shape of the Treasury curve, which has
flattened significantly, has yields on the short end higher than the long
portion due to an increase in buybacks on the hump of the yield curve and the
continued issuance of 30-year bonds. Leading sectors for the trailing twelve
months included: Energy, Finance, and Yankee bonds (foreign issues denominated
in U.S. dollars).
We have not changed our outlook towards the current environment. Our belief is
that this is a good time to be in the corporate bond market. We continue to
capitalize on the value in the bond market by diligently analyzing individual
issues and paying particular attention to reinvestment risk since we believe
that the world generally remains a deflationary place.
ANTHONY J. WILKINS IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES INTERMEDIATE
DURATION FIXED INCOME FUND.
<PAGE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception(a)
-------------------------------------------------------------------------------------
<S> <C> <C>
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND 6.89% 4.63%
Lipper Intermediate Investment Grade Debt Funds Index(b) 6.12% 4.37%
Lehman Brothers Government/Credit Intermediate Bond Index(c) 6.25% 5.07%
</TABLE>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Loomis Sayles Lipper Intermediate Lehman Brothers
Intermediate Duration Investment Government/Credit
Fixed Income Grade Debt Intermediate
Fund Funds Index Bond Index
<S> <C> <C> <C>
1/31/1998 $10,000 $10,000 $10,000
2/28/1998 $10,040 $9,986 $9,992
3/31/1998 $10,080 $10,022 $10,024
4/30/1998 $10,121 $10,069 $10,075
5/31/1998 $10,181 $10,160 $10,149
6/30/1998 $10,212 $10,241 $10,213
7/31/1998 $10,253 $10,262 $10,249
8/31/1998 $10,150 $10,401 $10,410
9/30/1998 $10,191 $10,634 $10,672
10/31/1998 $10,211 $10,548 $10,662
11/30/1998 $10,305 $10,601 $10,661
12/31/1998 $10,321 $10,646 $10,704
1/31/1999 $10,417 $10,712 $10,762
2/28/1999 $10,321 $10,521 $10,604
3/31/1999 $10,460 $10,604 $10,683
4/30/1999 $10,578 $10,693 $10,716
5/31/1999 $10,427 $10,531 $10,634
6/30/1999 $10,460 $10,495 $10,641
7/31/1999 $10,438 $10,458 $10,632
8/31/1999 $10,415 $10,447 $10,640
9/30/1999 $10,559 $10,562 $10,739
10/31/1999 $10,592 $10,578 $10,767
11/30/1999 $10,648 $10,591 $10,780
12/31/1999 $10,659 $10,542 $10,745
1/31/2000 $10,625 $10,505 $10,705
2/29/2000 $10,727 $10,619 $10,794
3/31/2000 $10,830 $10,750 $10,906
4/30/2000 $10,772 $10,683 $10,882
5/31/2000 $10,726 $10,664 $10,899
6/30/2000 $10,958 $10,889 $11,091
7/31/2000 $11,063 $10,982 $11,175
8/31/2000 $11,168 $11,135 $11,307
9/30/2000 $11,286 $11,208 $11,410
</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 NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN
FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND RANKINGS
WOULD BE LOWER.
(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/CREDIT 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. SOURCE: LIPPER INC.
(c) THE LEHMAN BROTHERS GOVERNMENT/CREDIT INTERMEDIATE BOND INDEX IS AN
UNMANAGED INDEX CONSISTING OF THOSE BONDS HELD WITHIN THE LEHMAN BROTHERS
GOVERNMENT/CREDIT BOND INDEX WHICH HAVE AN AVERAGE MATURITY OF 1-10 YEARS.
THE LEHMAN BROTHERS GOVERNMENT/CREDIT BOND INDEX CONSISTS OF APPROXIMATELY
5,300 CORPORATE AND GOVERNMENT ISSUES WITH AT LEAST $100 MILLION OUTSTANDING
FOR GOVERNMENT ISSUES AND $25 MILLION FOR CORPORATES AND GREATER THAN 1 YEAR
MATURITY. THE INDEX RETURNS HAVE NOT BEEN LOWERED FOR ONGOING MANAGEMENT AND
OPERATING EXPENSES APPLICABLE TO MUTUAL FUND INVESTMENTS. IT IS NOT POSSIBLE
TO INVEST DIRECTLY IN AN INDEX. 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 twelve-month period ended September 30, 2000, the Fund had
a total return of 7.74%, as compared to the Fund's benchmark, the Lehman
Brothers Government/Credit Bond Index, total return of 6.74%. For the same
period, the average corporate debt fund BBB-rated, as measured by Lipper Inc.,
had a total return of 4.98%.
There were many questions about the broader bond market entering this past year,
starting with concerns over Y2K, then rising oil prices, and the Federal Reserve
Board trying to suppress fears of inflation. As we entered the new millennium,
investors faced new challenges, with an inverted Treasury yield curve, a
loosening of the Federal Reserve Board's monetary stance and a roller coaster
equity market. Now, as we enter the final calendar quarter of 2000, fixed income
managers face a stabilizing but concerned bond environment. The past
twelve-months has seen a flight to quality ensue as higher quality and longer
maturity credits were able to post significant returns. This was largely due to
investors considering the long-term risk factors in the high yield sector in
conjunction with an abundance of downgrades in this sector. The new shape of the
Treasury curve, which has flattened significantly, has yields on the short end
higher than the long portion due to an increase in buybacks on the hump of the
yield curve and the continued issuance of 30-year bonds. The Latin American and
Asian sectors have stabilized politically and economically over the past year
with few exceptions. Canadian credits were also positive contributors as the
country has been able to sustain its growth relative to the U.S. We believe that
the Fund remains well diversified and focused on long-term capital appreciation
and current income. We believe it also has excellent call protection and
moderate upgrade potential.
We have not changed our outlook towards the current environment. Our belief is
that this is a good time to be in the corporate bond market. Gradually buying
discounted issues with fairly long maturities is an approach that we are
generally maintaining through this environment, both for the added yield and
call protection that they provide. We continue to concentrate on extracting
value through fundamental bond analysis in conjunction with relative value
analysis. We are cognizant of the current yield environment, the shape of curve
and economic fundamentals, but once again our approach to the market is one of
taking specific risk (i.e. bond picking) and our emphasis is on long-term
capital and price appreciation.
DANIEL J. FUSS IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES INVESTMENT GRADE
FIXED INCOME FUND.
<PAGE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 3 Years 5 Years Inception(a)
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND 7.74% 4.64% 7.94% 9.84%
Lipper Corporate Debt Funds BBB-Rated Index(b) 5.29% 4.13% 5.78% 7.04%
Lehman Brothers Government/Credit Bond Index(c) 6.74% 5.82% 6.30% 7.37%
</TABLE>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles
Investment Lipper Corporate Lehman Brothers
Grade Fixed Debt Funds Government/Corp.
Income Fund BBB-Rated Index Bond Index
<S> <C> <C> <C>
7/1/1994 $10,000 $10,000 $10,000
7/31/1994 $10,120 $10,171 $10,200
8/31/1994 $10,310 $10,211 $10,204
9/30/1994 $10,078 $10,070 $10,050
10/31/1994 $9,987 $10,038 $10,038
11/30/1994 $9,915 $10,011 $10,020
12/31/1994 $9,974 $10,061 $10,086
1/31/1995 $10,152 $10,224 $10,280
2/28/1995 $10,573 $10,457 $10,519
3/31/1995 $10,753 $10,539 $10,589
4/30/1995 $11,051 $10,729 $10,737
5/31/1995 $11,618 $11,192 $11,187
6/30/1995 $11,822 $11,276 $11,276
7/31/1995 $11,745 $11,250 $11,233
8/31/1995 $11,964 $11,415 $11,376
9/30/1995 $12,270 $11,549 $11,492
10/31/1995 $12,435 $11,703 $11,661
11/30/1995 $12,755 $11,895 $11,853
12/31/1995 $12,989 $12,091 $12,027
1/31/1996 $13,214 $12,189 $12,102
2/29/1996 $12,909 $11,932 $11,845
3/31/1996 $12,909 $11,844 $11,746
4/30/1996 $12,806 $11,769 $11,665
5/31/1996 $12,874 $11,761 $11,646
6/30/1996 $13,071 $11,895 $11,801
7/31/1996 $13,106 $11,925 $11,829
8/31/1996 $13,187 $11,919 $11,800
9/30/1996 $13,598 $12,158 $12,009
10/31/1996 $14,166 $12,449 $12,290
11/30/1996 $14,665 $12,727 $12,516
12/31/1996 $14,406 $12,604 $12,376
1/31/1997 $14,382 $12,644 $12,391
2/28/1997 $14,529 $12,716 $12,417
3/31/1997 $14,233 $12,520 $12,270
4/30/1997 $14,444 $12,705 $12,449
5/31/1997 $14,683 $12,850 $12,565
6/30/1997 $14,959 $13,042 $12,716
7/31/1997 $15,722 $13,493 $13,105
8/31/1997 $15,276 $13,314 $12,958
9/30/1997 $15,687 $13,548 $13,162
10/31/1997 $15,829 $13,686 $13,373
11/30/1997 $15,855 $13,753 $13,443
12/31/1997 $15,932 $13,900 $13,584
1/31/1998 $16,105 $14,077 $13,776
2/28/1998 $16,198 $14,072 $13,748
3/31/1998 $16,372 $14,144 $13,790
4/30/1998 $16,412 $14,204 $13,859
5/31/1998 $16,521 $14,326 $14,008
6/30/1998 $16,535 $14,431 $14,151
7/31/1998 $16,326 $14,420 $14,162
8/31/1998 $15,469 $14,315 $14,439
9/30/1998 $15,927 $14,610 $14,852
10/31/1998 $15,788 $14,430 $14,747
11/30/1998 $16,365 $14,697 $14,835
12/31/1998 $16,463 $14,733 $14,871
1/31/1999 $16,780 $14,861 $14,977
2/28/1999 $16,520 $14,540 $14,621
3/31/1999 $16,942 $14,702 $14,693
4/30/1999 $17,352 $14,807 $14,730
5/31/1999 $17,028 $14,607 $14,578
6/30/1999 $16,859 $14,531 $14,532
7/31/1998 $16,627 $14,457 $14,492
8/31/1999 $16,558 $14,404 $14,480
9/30/1999 $16,685 $14,528 $14,611
10/31/1999 $16,634 $14,556 $14,649
11/30/1999 $16,748 $14,591 $14,641
12/31/1999 $16,872 $14,568 $14,552
1/31/2000 $16,864 $14,525 $14,548
2/29/2000 $17,355 $14,704 $14,730
3/31/2000 $17,613 $14,839 $14,943
4/30/2000 $17,179 $14,659 $14,870
5/31/2000 $17,061 $14,548 $14,856
6/30/2000 $17,550 $14,916 $15,160
7/31/2000 $17,767 $14,980 $15,320
8/31/2000 $18,114 $15,253 $15,537
9/30/2000 $17,976 $15,297 $15,595
</TABLE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 3 Years Registration(a)
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND 7.74% 4.64% 6.27%
Lipper Corporate Debt Funds BBB-Rated Index(b) 5.29% 4.13% 5.89%
Lehman Brothers Government/Credit Bond Index(c) 6.74% 5.82% 7.09%
</TABLE>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles Lehman Brothers
Investment Lipper Corporate Government/Corp.
Grade Fixed Debt Funds Bond
Income Fund BBB-Rated Index Index
<S> <C> <C> <C>
3/31/1997 $10,000 $10,000 $10,000
4/30/1997 $9,984 $10,148 $10,146
5/31/1997 $10,149 $10,264 $10,241
6/30/1997 $10,340 $10,417 $10,364
7/31/1997 $10,867 $10,777 $10,681
8/31/1997 $10,559 $10,634 $10,561
9/30/1997 $10,843 $10,821 $10,727
10/31/1997 $10,941 $10,931 $10,899
11/30/1997 $10,959 $10,985 $10,956
12/31/1997 $11,012 $11,103 $11,071
1/31/1998 $11,132 $11,244 $11,227
2/28/1998 $11,196 $11,240 $11,205
3/31/1998 $11,316 $11,297 $11,239
4/30/1998 $11,344 $11,346 $11,296
5/31/1998 $11,419 $11,443 $11,417
6/30/1998 $11,429 $11,527 $11,533
7/31/1998 $11,284 $11,518 $11,542
8/31/1998 $10,692 $11,434 $11,768
9/30/1998 $11,009 $11,670 $12,104
10/31/1998 $10,913 $11,526 $12,019
11/30/1998 $11,312 $11,739 $12,090
12/31/1998 $11,379 $11,768 $12,120
1/31/1999 $11,599 $11,870 $12,206
2/28/1999 $11,419 $11,614 $11,916
3/31/1999 $11,711 $11,743 $11,975
4/30/1999 $11,995 $11,827 $12,005
5/31/1999 $11,770 $11,668 $11,881
6/30/1999 $11,653 $11,606 $11,844
7/31/1999 $11,493 $11,548 $11,811
8/31/1999 $11,446 $11,505 $11,802
9/30/1999 $11,533 $11,604 $11,908
10/31/1999 $11,498 $11,627 $11,939
11/30/1999 $11,577 $11,655 $11,932
12/31/1999 $11,663 $11,636 $11,860
1/31/2000 $11,657 $11,602 $11,856
2/29/2000 $11,996 $11,745 $12,005
3/31/2000 $12,175 $11,853 $12,179
4/30/2000 $11,875 $11,709 $12,119
5/31/2000 $11,793 $11,620 $12,108
6/30/2000 $12,131 $11,914 $12,355
7/31/2000 $12,281 $11,965 $12,486
8/31/2000 $12,521 $12,183 $12,663
9/30/2000 $12,426 $12,218 $12,710
</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 NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN
FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND RANKINGS
WOULD BE LOWER.
(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/CREDIT 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. SOURCE: LIPPER INC.
(c) LEHMAN BROTHERS GOVERNMENT/CREDIT 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. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX. 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 twelve-month period ended September 30, 2000, the Fund had a
total return of 25.34%, as compared to the Fund's benchmark, the S&P 500 Index,
total return of 13.28%. For the same period, the average large-cap core funds,
as measured by Lipper Inc., had a total return of 17.80%.
The quarter ending June 30, 2000 began with a growing recognition of and concern
about just how strong the economy was in the fourth quarter 1999 and first
quarter 2000. Labor markets were drum tight, and some signs of inflation were
beginning to surface. Anecdotal evidence of these problems was abundant and more
disturbing than the still relatively benign government numbers. This fueled
concerns that the Federal Reserve Board's efforts to slow the economy to a more
sustainable growth rate might need to be more aggressive and longer lasting than
originally expected. With this background it is not surprising that the weakness
in the very richly valued technology sector, which began in March, continued
into the new quarter. Enough other stocks, most notably the cyclicals and the
banks, joined in this weakness to pull the S&P 500 down 5.0% in April and May.
The best relative performance during this interval was to be found in defensive
sectors such as drugs and in the energy stocks. Towards the end of May, however,
evidence began to emerge that the Federal Reserve Board's efforts were beginning
to bear fruit. This led to hopes of a "soft landing" and an end to rate
increases which fueled a recovery in technology and some of the financials.
Overall, the S&P 500 rose 2.5% in June reducing the decline for the full quarter
to 2.7%.
In many respects the third quarter was a replay of the second quarter as
investors vacillated between fears ("hard" landing, oil prices, inflation) and
hopes ("soft" landing, declining inflation, and sustained growth). Over and
above these macro concerns, company and industry issues increasingly worried the
market, particularly in the latter part of the quarter. Most of these concerns
focused on the technology sector as evidence developed that different parts of
that large universe were following the path set earlier in the year by the
"dot.coms" in not living up to the expectations built into the lofty stock
prices. With this as background the rally that began in June came to an end in
mid July, corrected for two weeks, and then proceeded to a minor new high in
late August. September, however, saw a more difficult environment as a number of
companies preannounced disappointing third quarter results. The resulting
decline more than offset earlier gains and the quarter ended with a 1.0% decline
in the S&P 500.
Contributing to the Provident Fund's outperformance were underweighting in
technology and an overweighting in energy and electric utilities. The best
performing stocks AFLAC, Inc., General Dynamics Corp, Anadarko Petroleum Corp.
and Nabors Industries, Inc.. By far the worst performers were Apple Computer,
Inc. and American Power Conversion both of which preannounced disappointing
quarters. Activity remained at a high level.
The new quarter has begun with extreme volatility. Continued preannouncements
both from technology and other companies have set investors on edge. News from
the Mideast and gyrating oil and natural gas prices have added to the
uncertainty. Adding to these concerns are the U.S. election with both candidates
promising a much less restrained fiscal policy, European central bank leadership
which seems terminally inept, and signs of slowdowns in several developing
countries. Thus far in October this has been enough to cause a continuation of
the weakness which began in September with the technology sector being
particularly impacted. In many stocks the declines have been of sufficient
magnitude to approach attractive valuation levels if 2001 earnings live up to
current estimates, and we have made some selective purchases. Many other stocks,
however, remain at valuations virtually without precedent, and the market action
itself suggests the speculative bubble is not yet fully deflated.
QUENTIN FAULKNER IS THE PORTFOLIO MANAGER FOR THE LOOMIS SAYLES PROVIDENT FUND.
<PAGE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Since
1 Year 3 Years Inception(a)
---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES PROVIDENT FUND 25.34% 20.65% 19.70%
Lipper Large-Cap Core Funds Index(b) 17.72% 16.15% 20.12%
S&P 500 Index(c) 13.28% 16.44% 21.69%
</TABLE>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles Lipper Large-Cap
Provident Fund Core Funds Index S&P 500 Index
<S> <C> <C> <C>
10/1/1995 $10,000 $10,000 $10,000
10/31/1995 $9,800 $9,954 $9,964
11/30/1995 $10,040 $10,342 $10,402
12/31/1995 $10,042 $10,499 $10,602
1/31/1996 $10,032 $10,808 $10,963
2/29/1996 $10,213 $10,939 $11,065
3/31/1996 $10,213 $11,039 $11,171
4/30/1996 $10,443 $11,199 $11,336
5/31/1996 $10,604 $11,423 $11,628
6/30/1996 $10,533 $11,439 $11,672
7/31/1996 $9,952 $10,972 $11,157
8/31/1996 $10,283 $11,221 $11,392
9/30/1996 $10,824 $11,803 $12,034
10/31/1996 $11,085 $12,038 $12,365
11/30/1996 $11,886 $12,818 $13,300
12/31/1996 $11,609 $12,582 $13,036
1/31/1997 $12,337 $13,270 $13,851
2/28/1997 $12,236 $13,254 $13,959
3/31/1997 $11,882 $12,686 $13,386
4/30/1997 $12,408 $13,389 $14,185
5/31/1997 $12,924 $14,201 $15,048
6/30/1997 $13,136 $14,817 $15,724
7/31/1997 $14,148 $15,988 $16,974
8/31/1997 $13,511 $15,174 $16,023
9/30/1997 $13,987 $15,955 $16,900
10/31/1997 $13,532 $15,463 $16,336
11/30/1997 $13,592 $15,968 $17,092
12/31/1997 $13,430 $16,259 $17,386
1/31/1998 $13,649 $16,419 $17,578
2/28/1998 $14,656 $17,583 $18,846
3/31/1998 $15,390 $18,452 $19,811
4/30/1998 $15,697 $18,639 $20,010
5/31/1998 $15,248 $18,321 $19,666
6/30/1998 $15,719 $19,191 $20,465
7/31/1998 $15,839 $19,036 $20,247
8/31/1998 $13,528 $16,187 $17,324
9/30/1998 $14,886 $16,992 $18,429
10/31/1998 $15,511 $18,266 $19,929
11/30/1998 $16,256 $19,353 $21,137
12/31/1998 $18,026 $20,638 $22,354
1/31/1999 $18,623 $21,359 $23,289
2/28/1999 $17,997 $20,700 $22,565
3/31/1999 $19,017 $21,532 $23,469
4/30/1999 $19,570 $22,109 $24,377
5/31/1999 $19,279 $21,523 $23,801
6/30/1999 $20,546 $22,724 $25,125
7/31/1999 $20,444 $22,057 $24,338
8/31/1999 $20,196 $21,832 $24,217
9/30/1999 $19,599 $21,240 $23,553
10/31/1999 $19,861 $22,542 $25,044
11/30/1999 $19,992 $23,095 $25,558
12/31/1999 $21,374 $24,631 $27,058
1/31/2000 $20,736 $23,635 $25,698
2/29/2000 $21,836 $23,627 $25,212
3/31/2000 $23,971 $25,682 $27,678
4/30/2000 $23,971 $24,843 $26,845
5/31/2000 $24,301 $24,210 $26,294
6/30/2000 $23,949 $25,096 $26,943
7/31/2000 $23,487 $24,705 $26,521
8/31/2000 $25,336 $26,410 $28,169
9/30/2000 $24,566 $25,003 $26,682
</TABLE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Since
1 Year 3 Years Inception(a)
---------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES PROVIDENT FUND 25.34% 20.65% 21.09%
Lipper Large-Cap Core Funds Index(b) 17.72% 16.15% 21.39%
S&P 500 Index(c) 13.28% 16.44% 21.79%
</TABLE>
CUMULATIVE PERFORMANCE-REGISTRATION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles Lipper Large-Cap
Provident Fund Core Funds Index S&P 500 Index
<S> <C> <C> <C>
3/31/1997 $10,000 $10,000 $10,000
4/30/1997 $10,000 $10,554 $10,597
5/31/1997 $10,415 $11,194 $11,242
6/30/1997 $10,586 $11,680 $11,742
7/31/1997 $11,403 $12,603 $12,681
8/31/1997 $10,889 $11,961 $11,970
9/30/1997 $11,272 $12,577 $12,626
10/31/1997 $10,906 $12,189 $12,204
11/30/1997 $10,954 $12,587 $12,769
12/31/1997 $10,823 $12,816 $12,988
1/31/1998 $11,000 $12,942 $13,132
2/28/1998 $11,812 $13,860 $14,079
3/31/1998 $12,404 $14,545 $14,800
4/30/1998 $12,651 $14,693 $14,949
5/31/1998 $12,289 $14,442 $14,692
6/30/1998 $12,669 $15,128 $15,289
7/31/1998 $12,766 $15,006 $15,126
8/31/1998 $10,903 $12,760 $12,942
9/30/1998 $11,998 $13,394 $13,768
10/31/1998 $12,501 $14,399 $14,888
11/30/1998 $13,101 $15,255 $15,791
12/31/1998 $14,528 $16,268 $16,700
1/31/1999 $15,009 $16,837 $17,398
2/28/1999 $14,505 $16,317 $16,858
3/31/1999 $15,326 $16,973 $17,533
4/30/1999 $15,772 $17,428 $18,211
5/31/1999 $15,537 $16,966 $17,781
6/30/1999 $16,558 $17,912 $18,770
7/31/1999 $16,476 $17,387 $18,182
8/31/1999 $16,276 $17,209 $18,092
9/30/1999 $15,795 $16,743 $17,596
10/31/1999 $16,007 $17,769 $18,709
11/30/1999 $16,112 $18,205 $19,094
12/31/1999 $17,225 $19,416 $20,214
1/31/2000 $16,711 $18,631 $19,198
2/29/2000 $17,598 $18,625 $18,835
3/31/2000 $19,319 $20,244 $20,677
4/30/2000 $19,319 $19,583 $20,055
5/31/2000 $19,585 $19,084 $19,644
6/30/2000 $19,301 $19,783 $20,128
7/31/2000 $18,928 $19,474 $19,813
8/31/2000 $20,419 $20,818 $21,044
9/30/2000 $19,798 $19,709 $19,933
</TABLE>
NOTE: PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN
FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND RANKINGS
WOULD BE LOWER.
(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. SOURCE: LIPPER INC.
(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. IT IS NOT
POSSIBLE TO INVEST DIRECTLY IN AN INDEX.
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. For the twelve-month period ended September 30, 2000, the Fund
had a total return of 69.49%, as compared to the Fund's benchmark, the Russell
2000 Growth Index, total return of 29.66%. For the same period, the average
small-cap-growth fund, as measured by Lipper Inc., had a total return of 56.57%.
We attribute this strong performance to two key factors: solid stock selection
and being fully invested throughout the period.
To say the stock market experienced significant volatility during the past
twelve months would be the height of understatement. Our benchmark, the Russell
2000 Growth Index, soared almost 74% from September 30, 1999, to the market peak
on March 10, 2000. It then fell more than 25% from the March peak to September
30, 2000. We have also seen intra-day volatility at unprecedented levels. This
exceptionally volatile environment makes the job of managing a portfolio much
more difficult. Volatility raises trading costs, increases the chance of getting
"whipsawed", and makes the timing of investment decisions more critical.
We believe the best way to proceed in this type of market environment is to
simply "stick to our knitting". That is to focus on the strongest fundamental
opportunities among small cap growth stocks. And, try to use market volatility
to our advantage by adding stocks to the portfolio that we believe have been
unfairly punished by investors during a correction.
We continue to have a significant portion of the portfolio invested in the
technology sector. Of late, these companies have become quite controversial as
concerns grow that a slowing economy, rising oil prices and a weak Euro will
hurt near term spending on technology and earnings prospects. While we believe
that these concerns are valid, we expect the negative impact will be felt mostly
by the large multinationals, not by smaller companies that are at the leading
edge of the next wave technology in areas such as communications, software and
semiconductors. We have also made a significant commitment to health care
issues. We believe there is significant opportunity in the rapidly emerging
genomics field. The unlocking of the human genome has the potential to improve
our lives and lower the cost of health care in much the same way that computers
have transformed business and created a productivity boom. Interestingly, we
have also found opportunities for significant growth in energy with companies
benefiting from higher energy prices and the need to rebuild depleted domestic
reserves.
The last twelve months' performance was exceptional. It was helped at least in
part by unbounded investor enthusiasm for the emerging internet opportunity.
That enthusiasm has waned. We now seem to be in an environment of slowing
growth, greater investor skepticism, and lower valuations. The result has been
the sharp correction underway since mid-March. We hope this environment will
cause investors to temper their expectations for the balance of this year and
next. This is not necessarily bad for the stock market, as we believe tempered
expectations would be healthy. Indeed we remain optimistic. However, it seems
unlikely that returns over the next twelve months will reach the lofty levels of
the past twelve months.
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 ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
Since
1 Year Inception(a)
--------------------------------------------------------------------------------
<S> <C> <C>
LOOMIS SAYLES SMALL COMPANY GROWTH FUND 69.49% 62.68%
Lipper Small-Cap Growth Funds Index(b) 57.30% 52.24%
Russell 2000 Growth Index(c) 29.66% 21.59%
Russell 2000 Index(c) 23.39% 15.24%
</TABLE>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Loomis Sayles Lipper Russell Russell
Small Company Small-Cap Growth 2000 2000
Growth Fund Funds Index Growth Index Index
<S> <C> <C> <C> <C>
5/31/1999 $10,000 $10,000 $10,000 $10,000
6/30/1999 $11,320 $10,936 $10,527 $10,452
7/30/1999 $10,910 $10,897 $10,201 $10,165
8/31/1999 $11,050 $10,745 $9,820 $9,789
9/30/1999 $11,670 $11,134 $10,009 $9,791
10/31/1999 $13,170 $11,783 $10,265 $9,831
11/30/1999 $14,460 $13,270 $11,351 $10,418
12/31/1999 $17,770 $15,946 $13,351 $11,597
1/31/2000 $17,940 $15,780 $13,227 $11,411
2/29/2000 $24,560 $20,403 $16,305 $13,295
3/31/2000 $21,390 $18,801 $14,591 $12,419
4/30/2000 $19,010 $16,477 $13,118 $11,671
5/31/2000 $16,680 $15,130 $11,969 $10,991
6/30/2000 $20,520 $17,795 $13,515 $11,949
7/31/2000 $17,430 $16,637 $12,357 $11,565
8/31/2000 $20,470 $18,426 $13,657 $12,447
9/30/2000 $19,780 $17,514 $12,978 $12,081
</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 NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN
FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND RANKINGS
WOULD BE LOWER.
(a) INCEPTION DATE OF THE LOOMIS SAYLES SMALL COMPANY GROWTH FUND IS MAY 7,
1999. SINCE LIPPER SMALL-CAP GROWTH FUNDS INDEX AND RUSSELL 2000 GROWTH
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. SOURCE: LIPPER INC.
(c) THE FUND CHANGED ITS BENCHMARK INDEX DURING THE FISCAL YEAR-ENDED
SEPTEMBER 30, 2000 FROM THE RUSSELL 2000 INDEX TO THE RUSSELL 2000 GROWTH
INDEX. THE RUSSELL 2000 GROWTH INDEX IS AN UNMANAGED INDEX COMPRISED 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. IT IS NOT POSSIBLE TO INVEST DIRECTLY IN AN INDEX.
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 twelve-month period ended September 30, 2000, the Fund had a
total return of 21.83%, as compared to the Fund's benchmark, the Russell 2000
Index, total return of 23.39%. For the same period, the average small-cap value
fund, as measured by Lipper Inc., had a total return of 20.39%.
October 1999 to mid-March of this year was the culmination of the phenomenal
"new economy" bull market; a period in which the performance differential
favoring the market's growth component compared to value exceeded 50%. Since
that time, the technology tape has been in what can only be described as a bear
market (perhaps best exemplified by the NASDAQ composite index, which ended
September some 40% below its peak last Spring) while sectors such as electric
and gas utilities and financial services have joined health care services and
energy to generate strong returns for the value benchmarks. The market's
external drivers have also changed over the past year. Through most of the
period, a strong economy and better than expected earnings in many sectors left
investors primarily concerned with trying to predict the Federal Reserve Board's
next tightening move. Moving into the fall, however, fears of additional
interest rate hikes were replaced by growing concern as to the magnitude and
sustainability of economic growth over the next several quarters. While an
economic slowdown is not yet widely evident in government economic statistics,
there is growing anecdotal evidence of slowing in a broad range of sectors and
industries. Commodity and other basic materials producers' results are suffering
from a lack of pricing power and sluggish demand, as are a number of capital and
industrial goods suppliers, retailers, and other consumer cyclical companies.
Finally, there have even been signs of softening in certain of the technology
groups, driven home by a reduction in earnings expectations for bellwethers such
as Intel and Dell.
Entering the year's second half, it was our view that the economy was likely to
slow and as a result we took steps to position the portfolio for such an
eventuality. These included a reduction in exposure to technology, an increase
in our financial services and utility position, and a reduction in our materials
and processing sector weight. There has been no change in our overall investment
strategy or stock selection process--we continue to emphasize a high level of
earnings predictability and visibility along with strong value characteristics.
Over the past year, the Fund's best performing sector on an absolute basis was
health care, where the return exceeded 74%. Other sectors with particularly
strong appreciation were technology and energy. On a relative basis, the
portfolio's best performing sectors were autos and transportation and consumer
discretionary. The portfolio's worst performing sector on an absolute basis over
the past year was utilities, where performance was hurt by poor returns in
telecommunications services. Although our health care stocks delivered strong
absolute performance over the past twelve months, it was actually a poor
performing sector for the portfolio on a relative basis. This is because of an
underweight position throughout the year in the biotechnology industry, an
industry in which few issues fall within our valuation and stock selection
criteria. When considering the performance of individual issues, we would note
that the Fund benefited from a number of takeovers over the course of the year,
including Hadco and Pairgain in the technology sector, Burns International
Services in the consumer discretionary category, Cordant Technologies in
aerospace, and Acuson and Pathogenesis in the health care sector.
Moving into the new fiscal year, we expect the residue of six consecutive
Federal Reserve Board rate hikes, high-energy prices, unfavorable exchange rate
trends and an uncertain election outcome continue to justify a defensive bias in
our investment posture. In this environment investors are likely to migrate
toward companies with solid and predictable growth prospects, tangible earnings
and cash flow, and reasonable valuation metrics. We also believe the leveling of
performance between investment styles and the broadening participation evident
in the latter half of fiscal 2000 will continue. While it may be too soon to
suggest the emergence of a new cycle favoring the small cap value investment
style, we believe the Fund is well positioned to take advantage of the trends we
anticipate over the next several months.
JOSEPH GATZ AND DANIEL THELEN ARE THE PORTFOLIO MANAGERS FOR THE LOOMIS SAYLES
SMALL COMPANY VALUE FUND.
<PAGE>
AVERAGE ANNUAL RETURNS-PERIODS ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception(a)
--------------------------------------------------------------------------------
<S> <C> <C>
LOOMIS SAYLES SMALL COMPANY VALUE FUND 21.83% 11.42%
Lipper Small-Cap Value Funds Index(b) 16.86% 6.35%
Russell 2000 Index(c) 23.39% 12.29%
</TABLE>
CUMULATIVE PERFORMANCE-INCEPTION(a) TO SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Russell Loomis Sayles Lipper
2000 Small Company Small Cap Value
Index Value Fund Funds Index
<S> <C> <C> <C>
6/30/1999 $10,000 $10,000 $10,000
7/31/1999 $9,726 $9,900 $9,890
8/31/1999 $9,366 $9,610 $9,483
9/30/1999 $9,368 $9,400 $9,241
10/31/1999 $9,406 $9,320 $8,989
11/30/1999 $9,967 $9,720 $9,217
12/31/1999 $11,095 $10,113 $9,628
1/31/2000 $10,917 $9,853 $9,261
2/29/2000 $12,720 $10,611 $9,530
3/31/2000 $11,881 $11,089 $9,975
4/30/2000 $11,166 $11,016 $9,911
5/31/2000 $10,516 $10,476 $9,827
6/30/2000 $11,432 $10,902 $10,105
7/31/2000 $11,065 $10,912 $10,198
8/31/2000 $11,909 $11,649 $10,830
9/30/2000 $11,559 $11,452 $10,800
</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 NO GUARANTEE OF FUTURE PERFORMANCE. TOTAL RETURN
ASSUMES REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PERFORMANCE DATA REFLECTS CERTAIN
FEE WAIVERS AND REIMBURSEMENTS. WITHOUT SUCH WAIVERS, PERFORMANCE AND RANKINGS
WOULD BE LOWER.
(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. SOURCE: LIPPER INC.
(c) RUSSELL 2000 INDEX IS AN UNMANAGED INDEX COMPRISED 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. IT IS NOT
POSSIBLE TO INVEST DIRECTLY IN AN INDEX.
LOOMIS SAYLES INVESTMENT TRUST 20
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-2.8% OF NET ASSETS
FINANCIAL SERVICES--2.8%
Finova Capital Corp., 6.625%, 9/15/01 $500,000 $ 430,000
-----------
TOTAL BONDS AND NOTES
(Identified Cost $470,000) 430,000
-----------
MUNICIPAL BONDS AND NOTES-92.2% OF NET ASSETS
California Educational Facilities Authority Revenue,
6.000%, 2/15/17 600,000 624,168
California Health Facilities Authority Revenue, Series A,
(MBIA Insured), 5.550%, 8/15/25 300,000 299,976
California Housing Finance Agency, (MBIA Insured),
5.500%, 8/01/17 500,000 496,705
California Pollution Control, 5.000%, 4/01/08 425,000 438,965
California State General Obligations, 5.500%, 6/01/01 500,000 505,775
California State General Obligations, 5.750%, 3/01/13 505,000 529,351
California State General Obligations, (MBIA Insured),
6.000%, 10/01/14 (Prerefunded 10/1/02 @ 102) 240,000 252,967
California State General Obligations, (MBIA Insured),
6.000%, 10/01/14 10,000 10,415
California State Public Works Board, Community College,
5.200%, 3/01/06 200,000 207,368
California State Public Works Board, Community College,
5.200%, 4/01/07 500,000 520,315
California State Public Works Lease, 5.400%, 4/01/04 200,000 206,734
California State Water Resources Development,
5.000%, 3/01/01 (Prerefunded 6/15/00 @ 102) 200,000 201,032
California Statewide Community Development,
St. Joseph Health Systems, 4.750%, 7/01/16 500,000 450,525
East Bay California Municipal Utility Water Systems,
6.000%, 6/01/12 500,000 521,025
Fresno, California, Unified School District, Series D
(FSA Insured), 5.125%, 8/01/18 500,000 484,280
Industry, California, (MBIA insured), 5.700%, 7/01/18 290,000 299,335
Los Angeles State Building Authority, Lease Revenue,
5.375%, 5/01/06 300,000 313,635
Los Angeles, California, Electric Plant Revenue,
(MBIA Insured), Department of Water & Power,
6.000%, 6/01/13 500,000 514,620
Los Angeles, California, Water and Power Waterworks
Revenue, (Department of Water & Power),
6.500%, 11/01/10 350,000 364,791
Northern California Power Agency, Public Revenue,
5.250%, 7/01/02 250,000 252,965
Riverside, California, Electric Revenue, (MBIA Insured),
5.200%, 10/01/08 230,000 238,087
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS AND NOTES-CONTINUED
Sacramento, California, Municipal Utility District,
5.700%, 5/15/12 $500,000 $ 515,060
Sacramento, California, Power Authority,
6.000%, 7/01/02 500,000 510,875
San Diego, California, Open Space Park Facility,
District One, 5.750%, 1/01/08 250,000 262,942
San Francisco Bay Area Rapid Transit Authority,
(FGIC Insured), 5.450%, 7/01/08 200,000 210,438
San Francisco, California, City & County International
Airport Revenue, (AMBAC Insured), 6.200%, 5/01/04
(Prerefunded 5/01/02 @ 102) 120,000 126,014
San Francisco, California, City & County International
Airport Revenue, (AMBAC Insured), 6.200%, 5/01/04 180,000 188,797
San Francisco, California, City & County Public Utility
Water Revenue, Series A, 6.375%, 11/01/06 500,000 529,210
San Francisco, California, City & County Redevelopment
Project, Series B, 5.200%, 8/01/08
(Prerefunded 8/01/03 @ 100) 250,000 256,445
San Francisco, California, Public Utilities, 6.000%, 11/01/15 500,000 509,125
San Francisco, California, Sewer Revenue, (AMBAC Insured),
6.000%, 10/01/11 500,000 524,655
San Francisco, California, State Building Authority,
5.125%, 10/01/07 250,000 259,730
San Jose, California, Airport Revenue, (FGIC Insured),
5.875%, 3/01/07 200,000 216,872
Santa Clara, California, Electric Revenue, (MBIA Insured),
6.250%, 7/01/13 (Prerefunded 7/01/01 @ 102) 250,000 259,188
Southern California, Public Power Transmission Revenue,
(MBIA Insured), 5.250%, 7/01/10 500,000 526,160
Turlock, California, Irrigation District Revenue,
(MBIA Insured), 5.750%, 1/01/18 500,000 506,805
University of California Revenue, Series B,
5.800%, 9/01/07 (Prerefunded 9/1/03 @ 102) 415,000 440,693
University of California Revenue, Series B, 6.500%, 9/01/03 300,000 316,839
University of California Revenue, Series C, (AMBAC Insured),
4.700%, 9/01/06 200,000 203,248
-----------
14,096,130
-----------
TOTAL MUNICIPAL BONDS AND NOTES
(Identified Cost $14,028,282) 14,096,130
-----------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 22
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-3.7% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co.,
dated 9/29/00 at 5.250% to be repurchased at $563,246 on
10/02/00 collateralized by $540,000 U.S. Treasury Bond,
8.375% due 8/15/08 with a value of $575,775 $563,000 $ 563,000
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $563,000) 563,000
-----------
TOTAL INVESTMENTS--98.7%
(IDENTIFIED COST $15,061,282) @ 15,089,130
Cash and Other Assets, Less Liabilities--1.3% 205,213
-----------
NET ASSETS--100% $15,294,343
===========
</TABLE>
+ See Note 1.
@ At September 30, 2000, the net unrealized appreciation on investments based on
cost of $15,061,282 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 $222,762
and $194,914, respectively, resulting in net unrealized appreciation of
$27,848.
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 SEPTEMBER 30, 2000
AS A PERCENTAGE OF NET ASSETS
<TABLE>
<S> <C>
General Obligations 20.7%
Utilities 18.4%
Education 15.1%
Revenue 11.6%
Water & Sewer 10.2%
Public Works 6.4%
Healthcare-Services 4.9%
Financial Services 2.8%
Air Transport 2.1%
Auto & Related 1.4%
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-96.6% OF NET ASSETS
BANKS/SAVINGS & LOANS--7.2%
Banc One Corp., 8.000%, 4/29/27 $ 550,000 $ 548,927
First America Bank Corp., 7.750%, 7/15/04 150,000 151,929
Standard Federal Bank, 7.750%, 7/17/06 450,000 462,096
-----------
1,162,952
-----------
BROADCASTING--1.4%
Adelphia Communications Corp., 9.375%, 11/15/09 250,000 227,500
-----------
CHEMICALS--1.5%
Lyondell Chemical Co., 10.875%, 5/01/09 250,000 242,500
-----------
COMPUTER HARDWARE--2.2%
Seagate Technology, Inc., 7.125%, 3/01/04 122,000 115,895
Seagate Technology, Inc., 7.370%, 3/01/07 265,000 240,082
-----------
355,977
-----------
FINANCIAL SERVICES--11.7%
Duke Capital Corp., 8.000%, 10/01/19 600,000 607,839
EQCC Home Equity Loan Trust, Class A,
6.347%, 8/25/22 1,000,000 984,790
Household Finance Corp., 7.200%, 7/15/06 300,000 297,946
-----------
1,890,575
-----------
FOREIGN GOVERNMENT/AGENCY--3.4%
United Mexican States, 11.500%, 5/15/26 450,000 546,300
-----------
FOREST & PAPER PRODUCTS--2.6%
Boise Cascade Corp., 9.800%, 4/15/03 200,000 208,046
Boise Cascade Corp., 9.980%, 3/27/03 200,000 208,710
-----------
416,756
-----------
GOVERNMENT AGENCIES--5.7%
Federal National Mortgage Association, 6.375%, 6/15/09 300,000 291,798
Federal National Mortgage Association, 7.500%, 9/01/30 622,809 621,252
-----------
913,050
-----------
MORTGAGE RELATED--28.4%
Comed Transitional Funding Trust, Class A, 5.630%, 6/25/09 440,000 411,950
Federal Home Loan Mortgage Corp., 6.500%, 1/01/27 90,428 87,150
Federal Home Loan Mortgage Corp., 8.000%, 7/01/25 17,093 17,392
Federal Home Loan Mortgage Corp., 8.000%, 12/01/26 39,570 40,176
Federal National Mortgage Association, 7.000%, 12/01/11 520,325 519,186
Federal National Mortgage Association, 7.500%, 1/01/27 92,342 92,342
Federal National Mortgage Association, 7.500%, 9/01/30 1,000,000 997,500
Federal National Mortgage Association, 8.000%, 6/01/15 578,974 589,465
Federal National Mortgage Association, 8.000%, 4/01/30 486,332 492,713
Government National Mortgage Association, 6.500%, 4/15/26 97,806 94,383
Government National Mortgage Association, 8.500%, 4/15/23 50,759 52,297
Government National Mortgage Association, 8.500%, 4/15/30 684,881 703,927
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 24
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CORE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
MORTGAGE RELATED--CONTINUED
Government National Mortgage Association, 9.500%, 9/15/20 $ 61,962 $ 64,421
Residential Funding Mortgage, Inc., 6.750%, 12/25/14 424,273 416,525
-----------
4,579,427
-----------
NATURAL GAS--4.0%
Columbia Gas Systems, Inc., 7.050%, 11/28/07 675,000 647,980
-----------
OIL & GAS--5.0%
Ensco International, Inc., 6.750%, 11/15/07 350,000 333,823
Union Oil Co., 7.500%, 2/15/29 500,000 476,505
-----------
810,328
-----------
REAL ESTATE INVESTMENT TRUSTS--2.2%
Developers Diversified Realty Corp., 6.800%, 7/23/02 125,000 122,793
Host Marriott Corp., Series B, 7.875%, 8/01/08 250,000 230,625
-----------
353,418
-----------
SECURITIES--3.9%
Lehman Brothers Holdings, Inc., 6.125%, 7/15/03 495,000 483,610
Lehman Brothers Holdings, Inc., 7.250%, 4/15/03 150,000 150,779
-----------
634,389
-----------
TELECOMMUNICATIONS--3.5%
Charter Communications Holdings, 10.000%, 4/01/09 150,000 147,000
RCN Corp., 10.125%, 1/15/10 250,000 178,750
Williams Communications Group, Inc., 10.875%, 10/01/09 250,000 228,125
-----------
553,875
-----------
TRANSPORTATION--1.6%
Union Pacific Corp., 6.700%, 12/01/06 260,000 248,807
-----------
U.S. GOVERNMENT--3.2%
U.S. Treasury Notes, 7.250%, 8/15/04 490,000 512,202
-----------
UTILITIES--9.1%
Boston Edison Co., 6.800%, 3/15/03 400,000 396,496
Commonwealth Edison Co., 7.375%, 1/15/04 586,000 591,204
MidAmerican Energy Holdings Co., 6.375%, 6/15/06 500,000 476,720
-----------
1,464,420
-----------
TOTAL BONDS AND NOTES
(Identified Cost $15,786,526) 15,560,456
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES CORE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-2.0% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co.,
dated 9/29/00 at 5.250% to be repurchased at $323,141 on
10/02/00 collateralized by $310,000 U.S. Treasury Bond,
8.375% due 8/15/08 with a value of $330,538 $323,000 $ 323,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $323,000) 323,000
-----------
TOTAL INVESTMENTS--98.6%
(IDENTIFIED COST $16,109,526) @ 15,883,456
Cash and Other Assets, Less Liabilities--1.4% 223,654
-----------
NET ASSETS--100% $16,107,110
===========
</TABLE>
+ See Note 1.
@ At September 30, 2000, the net unrealized depreciation on investments based
on cost of $16,109,526 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
$101,412 and 327,482, respectively, resulting in net unrealized depreciation
of $226,070.
See accompanying notes to financial statements.
LOOMIS SAYLES INVESTMENT TRUST 26
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-91.8% OF NET ASSETS
NON-CONVERTIBLE BONDS-76.4%
AEROSPACE/DEFENSE--2.7%
Lockheed Martin Corp., 7.750%, 5/01/26 USD 4,000,000 $ 3,863,240
Raytheon Co., 6.400%, 12/15/18 1,225,000 1,038,910
Raytheon Co., 6.750%, 3/15/18 5,000,000 4,337,800
Raytheon Co., 7.000%, 11/01/28 1,500,000 1,279,605
Raytheon Co., 7.200%, 8/15/27 1,000,000 877,150
-----------
11,396,705
-----------
AIRLINES--0.8%
Delta Air Lines, Inc., 8.300%, 12/15/29 3,897,000 3,522,226
-----------
AUTO & RELATED--2.5%
Dana Corp., 7.000%, 3/15/28 500,000 415,400
Dana Corp., 7.000%, 3/01/29 750,000 602,205
Delphi Automotive Systems Corp., 7.125%, 5/01/29 4,700,000 4,002,238
Exide Corp., 10.000%, 4/15/05 225,000 173,250
Ford Motor Co., 6.375%, 2/01/29 750,000 603,758
Ford Motor Co., 6.625%, 10/01/28 3,650,000 3,069,102
TRW, Inc., 6.650%, 1/15/28 1,000,000 794,410
TRW, Inc., 7.750%, 6/01/29 1,185,000 1,068,948
-----------
10,729,311
-----------
BANKS/SAVINGS & LOANS--1.5%
Keycorp Capital II, 6.875%, 3/17/29 5,250,000 4,082,243
Keycorp Capital III, 7.750%, 7/15/29 2,500,000 2,164,625
-----------
6,246,868
-----------
BROADCASTING--0.7%
Fox Family Worldwide, Inc., Zero Coupon
Bond, 11/01/07 (step to 10.250% on 11/01/02) # 4,100,000 2,982,750
-----------
BUILDING MATERIALS--0.3%
Owens Corning, 7.500%, 8/01/18 ^ 3,500,000 1,006,250
Owens Corning, 7.700%, 5/01/08 ^ 500,000 165,000
-----------
1,171,250
-----------
CANADIAN--15.4%
Canadian Government, Zero Coupon Bond, 6/01/22 CAD 17,500,000 3,266,155
Canadian Government, Zero Coupon Bond, 6/01/25 71,460,000 11,877,220
Clearnet Communications, Inc., Zero Coupon Bond,
5/15/08 (step to 10.400% on 5/15/03) # 2,500,000 1,418,943
New Brunswick FM Project, Zero Coupon Bond,
11/30/27 (step to 6.470% on 5/30/03) 144A # 1,250,000 684,625
Ontario Hydro, Zero Coupon Bond, 8/06/21 15,000,000 2,627,942
Ontario Hydro, Zero Coupon Bond, 10/15/21 10,000,000 1,730,754
Province of Alberta, 5.000%, 12/16/08 2,000,000 1,243,066
Province of Alberta, 5.394%, 6/14/13 2,302,500 1,465,781
Province of Alberta, 5.930%, 9/16/16 1,513,648 989,396
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
CANADIAN--CONTINUED
Province of British Columbia, Zero Coupon Bond, 8/23/13 CAD 11,700,000 $ 3,395,504
Province of British Columbia, Zero Coupon Bond, 9/05/20 17,278,000 3,135,930
Province of British Columbia, Zero Coupon Bond, 5/15/21 4,500,000 780,664
Province of British Columbia, Zero Coupon Bond, 8/19/22 7,365,000 1,190,582
Province of British Columbia, Zero Coupon Bond, 9/08/23 3,300,000 500,090
Province of British Columbia, Zero Coupon Bond, 8/23/24 18,000,000 2,574,711
Province of British Columbia, Zero Coupon Bond, 11/19/27 8,150,000 996,346
Province of British Columbia, 5.700%, 6/18/29 4,300,000 2,617,563
Province of Manitoba, Zero Coupon Bond, 3/05/31 10,000,000 1,063,422
Province of Manitoba, 6.500%, 9/22/17 5,075,000 3,426,519
Province of Manitoba, 7.750%, 12/22/25 5,295,000 4,095,476
Province of Newfoundland, 6.150%, 4/17/28 1,000,000 626,958
Province of Ontario, Zero Coupon Bond, 7/13/22 17,200,000 2,868,725
Province of Ontario, Zero Coupon Bond, 6/02/27 52,950,000 6,908,634
Province of Saskatchewan, Zero Coupon Bond, 4/10/14 5,000,000 1,400,778
Province of Saskatchewan, 5.750%, 3/05/29 3,460,000 2,119,980
Province of Saskatchewan (Certificate of Deposit), Zero
Coupon Bond, 2/04/22 13,500,000 2,236,897
Province of Saskatchewan (Certificate of Deposit), Zero
Coupon Bond, 5/30/25 4,375,000 607,474
-----------
65,850,135
-----------
COMMUNICATIONS--0.5%
Charter Communications Holdings, Zero Coupon
Bond, 4/01/11 (step to 9.920% on 4/04/04) # USD 3,500,000 2,030,000
-----------
COMPUTER HARDWARE--0.9%
Apple Computer, Inc., 6.500%, 2/15/04 1,325,000 1,205,750
International Business Machines Corp., 5.375%, 2/01/09 100,000 89,993
Seagate Technology, Inc., 7.450%, 3/01/37 2,725,000 2,628,761
-----------
3,924,504
-----------
COMPUTER SERVICES--0.2%
Rhythms NetConnections, Inc., Series B, Zero Coupon
Bond, 5/15/08 (step to 13.500% on 5/15/03) # 1,800,000 684,000
-----------
ELECTRONIC COMPONENTS--0.1%
Westinghouse Electric Corp., 7.875%, 9/01/23 500,000 495,135
Zenith Electronics Corp., 8.190%, 11/01/09 541,000 156,890
-----------
652,025
-----------
ENTERTAINMENT--3.3%
Time Warner Entertainment Co., 6.875%, 6/15/18 2,840,000 2,568,979
Time Warner Entertainment Co., 6.950%, 1/15/28 6,650,000 5,891,301
Time Warner Entertainment Co., 7.570%, 2/01/24 1,625,000 1,524,299
Time Warner, Inc., 6.625%, 5/15/29 4,700,000 3,984,801
-----------
13,969,380
-----------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 28
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
FINANCIAL SERVICES--1.8%
Associates Corporation of North America,
6.250%, 11/01/08 USD 75,000 $ 70,088
Commercial Credit Co., 6.500%, 6/01/05 50,000 49,082
Merey Sweeny LP, 8.850%, 12/18/19 144A 875,000 875,508
Sears Roebuck Acceptance Corp., 6.000%, 3/20/03 50,000 48,560
Security Capital Group, Inc., 7.700%, 6/15/28 2,000,000 1,646,800
US West Capital Funding, Inc., 6.375%, 7/15/08 100,000 93,210
US West Capital Funding, Inc., 6.500%, 11/15/18 1,325,000 1,165,655
US West Capital Funding, Inc., 6.875%, 7/15/28 4,320,000 3,862,685
-----------
7,811,588
-----------
FOOD & BEVERAGE--1.3%
Borden, Inc., 7.875%, 2/15/23 1,850,000 1,376,900
ConAgra, Inc., 7.000%, 10/01/28 2,500,000 2,153,900
Pepsi Bottling Group, Inc., 7.000%, 3/01/29 2,250,000 2,062,237
-----------
5,593,037
-----------
FOREIGN GOVERNMENT/AGENCY--6.7%
Escom, 11.000%, 6/01/08 ZAR 14,500,000 1,737,587
Republic of Argentina, 6.000%, 3/31/23 USD 500,000 343,000
Republic of Argentina, 8.875%, 3/01/29 1,500,000 997,005
Republic of Argentina, 9.750%, 9/19/27 1,000,000 794,000
Republic of Brazil, 10.125%, 5/15/27 5,777,000 4,477,175
Republic of Brazil, 11.000%, 8/17/40 1,875,000 1,495,313
Republic of Brazil C Bond, 8.000%, 4/15/14 PIK 11,544,447 8,831,502
Republic of Peru, 3.750%, 3/07/17
(step to 4.000% on 3/07/01) # 1,000,000 562,500
Republic of Philippines, 9.875%, 1/15/19 750,000 615,000
Republic of Philippines, 10.625%, 3/16/25 2,000,000 1,690,000
Republic of South Africa, 8.500%, 6/23/17 1,800,000 1,642,500
Republic of South Africa, 12.500%, 12/21/06 ZAR 4,000,000 537,491
Republic of South Africa, 13.000%, 8/31/11 10,700,000 1,434,649
Republic of South Africa, 13.500%, 9/15/15 7,500,000 1,036,902
Republic of Venezuela, 9.250%, 9/15/27 USD 3,750,000 2,536,125
-----------
28,730,749
-----------
FOREIGN ISSUER--9.6%
APP China Group Ltd., 14.000%, 3/15/10 144A 2,900,000 1,334,000
Bangko Sentral Pilipinas, 8.600%, 6/15/27 2,500,000 1,700,000
Bangkok Bank Public Co. Ltd., 9.025%, 3/15/29 144A 4,400,000 3,454,000
Cerro Negro Finance Ltd., 7.900%, 12/01/20 144A 1,000,000 818,810
Compania de Alimentos Fargo SA, 13.250%, 8/01/08 2,500,000 2,000,000
Embotelladora Andina SA, 7.625%, 10/01/27 1,300,000 1,089,280
Empresa Nacional de Electricidad SA (Endesa),
7.875%, 2/01/27 950,000 834,774
Hyundai Motor Co. Ltd., 7.600%, 7/15/07 144A 750,000 685,358
Indah Kiat Finance Mauritius Ltd., 10.000%, 7/01/07 1,000,000 490,000
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
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<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
FOREIGN ISSUER--CONTINUED
Jazztel Plc, 13.250%, 12/15/09 EUR 500,000 $ 393,111
Jazztel Plc, 14.000%, 7/15/10 144A 250,000 214,104
Korea Electric Power Corp., 6.750%, 8/01/27 USD 500,000 480,345
Korea Electric Power Corp., 7.400%, 4/01/16 1,148,250 1,056,987
Multicanal SA, 10.500%, 4/15/18 500,000 340,000
Perez Companc SA, 8.125%, 7/15/07 144A 1,550,000 1,333,000
Petroleos Mexicanos, 8.625%, 12/01/23 144A 250,000 225,000
Petroleos Mexicanos, 9.250%, 3/30/18 650,000 632,937
Petroleos Mexicanos, 9.500%, 9/15/27 1,450,000 1,421,000
Petrozuata Finance, Inc., 8.220%, 4/01/17 144A 350,000 288,750
Philippine Long Distance Telephone Co., 8.350%, 3/06/17 400,000 269,606
Pindo Deli Finance Mauritius Ltd., 10.750%, 10/01/07 3,100,000 1,519,000
Pindo Deli Finance Mauritius Ltd., 10.875%, 10/01/27 3,250,000 1,235,000
Pindo Deli Finance Mauritius Ltd., 11.750%, 10/01/17 2,000,000 820,000
PTC International Finance BV, Zero Coupon Bond,
7/01/07 (step to 10.750% on 7/01/02) # 2,000,000 1,400,000
Quezon Power Philippines Co., 8.860%, 6/15/17 1,820,000 1,456,000
Samsung Electronics Co. Ltd., 7.700%, 10/01/27 144A 2,000,000 1,526,800
Siam Commercial Bank Public Co. Ltd., 7.500%,
3/15/06 144A 750,000 645,000
Southern Peru Ltd., 7.900%, 5/30/07 340,537 319,356
Tata Electric Co., 8.500%, 8/19/17 144A 3,150,000 2,604,987
Tenaga Nasional Berhad, 7.500%, 11/01/25 144A 2,500,000 2,113,790
Thai Farmers Bank Plc, 8.250%, 8/21/16 144A 3,000,000 2,340,000
Tjiwi Kimia Mauritius Ltd., 10.000%, 8/01/04 1,675,000 971,500
Total Access Communication Public Co. Ltd., 8.375%,
11/04/06 144A 3,850,000 3,388,000
Transener SA, 9.250%, 4/01/08 144A 1,000,000 910,000
Transportacion Maritima Mexicana SA de CV, 10.000%,
11/15/06 1,000,000 740,000
-----------
41,050,495
-----------
FOREST & PAPER PRODUCTS--3.1%
Champion International Corp., 7.350%, 11/01/25 2,425,000 2,181,021
Georgia-Pacific Corp. (Timber Group), 7.250%, 6/01/28 2,000,000 1,720,760
Georgia-Pacific Group, 7.375%, 12/01/25 6,000,000 5,270,700
Georgia-Pacific Group, 7.750%, 11/15/29 2,500,000 2,279,000
International Paper Co., 6.875%, 11/01/23 1,000,000 860,010
International Paper Co., 6.875%, 4/15/29 1,000,000 850,180
-----------
13,161,671
-----------
GOVERNMENT AGENCIES--1.8%
Federal Home Loan Mortgage Corp., 6.500%, 5/15/08 184,464 181,638
Federal National Mortgage Association, Zero Coupon
Bond, 10/29/07 NZD 11,450,000 2,757,181
Federal National Mortgage Association, 6.250%, 5/15/29 USD 3,650,000 3,365,994
Federal National Mortgage Association, 6.375%, 8/15/07 AUD 3,000,000 1,588,129
-----------
7,892,942
-----------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 30
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
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FACE
AMOUNT VALUE +
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<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
HEALTHCARE--PRODUCTS--0.2%
Bausch & Lomb, Inc., 7.125%, 8/01/28 USD 1,250,000 $ 763,863
-----------
HEALTHCARE--SERVICES--0.9%
Columbia/HCA Healthcare Corp., 7.050%, 12/01/27 2,250,000 1,721,250
Columbia/HCA Healthcare Corp., 7.580%, 9/15/25 1,500,000 1,260,000
Columbia/HCA Healthcare Corp., 7.690%, 6/15/25 1,000,000 837,500
-----------
3,818,750
-----------
HOME BUILDERS--0.2%
Pulte Corp., 7.625%, 10/15/17 1,000,000 799,500
-----------
INSURANCE--0.2%
Conseco, Inc., 8.500%, 10/15/02 1,000,000 795,000
-----------
MEDIA & ENTERTAINMENT--0.1%
News America Holdings, Inc., 7.700%, 10/30/25 700,000 644,301
-----------
OIL & GAS--5.9%
Anadarko Petroleum Corp., 6.625%, 1/15/28 1,000,000 833,040
Chesapeake Energy Corp., 8.500%, 3/15/12 500,000 438,750
Chesapeake Energy Corp., Series B, 7.875%, 3/15/04 700,000 658,000
Global Marine, Inc., 7.000%, 6/01/28 1,000,000 892,460
Hvide Marine, Inc., 12.500%, 6/30/07 502,708 432,329
Kerr-McGee Corp., 7.125%, 10/15/27 800,000 719,168
Pennzoil-Quaker State Co., 7.375%, 4/01/29 8,100,000 6,065,766
Phillips 66 Capital Trust II, 8.000%, 1/15/37 1,300,000 1,149,161
Pioneer Natural Resources Co., 6.500%, 1/15/08 1,000,000 875,110
Pioneer Natural Resources Co., 7.200%, 1/15/28 750,000 596,250
Seagull Energy Corp., 7.500%, 9/15/27 3,500,000 2,992,500
Tennessee Gas Pipeline Co., 7.000%, 10/15/28 1,750,000 1,560,667
Tosco Corp., 7.800%, 1/01/27 3,400,000 3,291,948
Union Pacific Resources Group, Inc., 7.050%, 5/15/18 500,000 465,120
Union Pacific Resources Group, Inc., 7.150%, 5/15/28 2,800,000 2,575,076
Union Pacific Resources Group, Inc., 7.950%, 4/15/29 1,000,000 1,011,620
Williams Companies, Inc., 7.625%, 7/15/19 500,000 485,285
-----------
25,042,250
-----------
OIL & GAS DRILLING EQUIPMENT--0.7%
R & B Falcon Corp., Series B, 7.375%, 4/15/18 3,500,000 3,119,375
-----------
RAIL--TRANSPORT--0.1%
Missouri Pacific Railroad Co., 5.000%, 1/01/45 500,000 259,375
-----------
REAL ESTATE INVESTMENT TRUSTS--4.1%
AMB Property Corp., 7.500%, 6/30/18 1,500,000 1,332,435
CarrAmerica Realty Corp., 6.875%, 3/01/08 500,000 454,905
EOP Operating LP, 7.250%, 2/15/18 2,000,000 1,772,100
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
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FACE
AMOUNT VALUE +
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<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
REAL ESTATE INVESTMENT TRUSTS--CONTINUED
First Industrial, 7.500%, 12/01/17 USD 3,000,000 $ 2,596,080
First Industrial, 7.600%, 7/15/28 6,000,000 5,032,260
ProLogis Trust, 7.100%, 4/15/08 3,400,000 3,210,756
Susa Partnership LP, 7.450%, 7/01/18 1,500,000 1,288,590
Susa Partnership LP, 7.500%, 12/01/27 1,750,000 1,453,077
TriNet Corporate Realty Trust, Inc., 7.700%, 7/15/17 500,000 346,700
-----------
17,486,903
-----------
RETAIL--GENERAL--1.3%
Dillard's, Inc., 6.430%, 8/01/04 1,000,000 810,330
Dillon Read Structured Finance Corp., 7.430%, 8/15/18 1,000,000 645,000
Dillon Read Structured Finance Corp., 8.550%, 8/15/19 500,000 338,250
Dillon Read Structured Finance Corp., Series A, 6.660%,
8/15/10 181,678 139,874
J.C. Penney Co., Inc., 7.125%, 11/15/23 500,000 302,790
J.C. Penney Co., Inc., 7.600%, 4/01/07 750,000 606,308
J.C. Penney Co., Inc., 7.650%, 8/15/16 750,000 517,200
J.C. Penney Co., Inc., 7.950%, 4/01/17 700,000 494,025
K Mart Corp., 7.950%, 2/01/23 1,600,000 1,070,624
Wal-Mart Stores, Inc., 8.000%, 9/15/06 50,000 52,932
Woolworth Corp., 8.500%, 1/15/22 1,000,000 650,000
-----------
5,627,333
-----------
SECURITIES--0.0%
Morgan Stanley Dean Witter & Co., 6.875%, 3/01/03 50,000 50,031
Salomon Smith Barney Holdings, Inc., 6.125%, 1/15/03 75,000 73,655
-----------
123,686
-----------
STEEL--0.0%
Geneva Steel Co., 9.500%, 1/15/04 ^ 1,500,000 232,500
-----------
SUPRANATIONAL--2.3%
International Bank for Reconstruction & Development,
Zero Coupon Bond, 8/20/07 NZD 37,850,000 9,384,622
International Bank for Reconstruction & Development,
8.000%, 5/23/07 1,000,000 418,199
-----------
9,802,821
-----------
TAXABLE MUNICIPAL--0.1%
Orange County, California Pension Obligation, Zero
Coupon Bond, 9/01/16 USD 2,000,000 599,660
-----------
TELECOMMUNICATIONS--3.3%
AT&T Corp., 6.000%, 3/15/09 100,000 90,032
Covad Communications Group, Inc., 12.000%,
2/15/10 500,000 367,500
GTE North, Inc., 6.375%, 2/15/10 100,000 92,494
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 32
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
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FACE
AMOUNT VALUE +
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<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
TELECOMMUNICATIONS--CONTINUED
Intermedia Communications, Inc., Zero Coupon Bond,
3/01/09 (step to 12.250% on 3/01/04) # USD 1,500,000 $ 1,005,000
Level 3 Communications, Inc., Zero Coupon Bond,
12/01/08 (step to 10.500% on 12/01/03) # 1,500,000 885,000
Nextel Communications, Inc., Zero Coupon Bond,
10/31/07 (step to 9.750% on 10/31/02) # 1,725,000 1,345,500
Nextel Communications, Inc., Zero Coupon Bond,
2/15/08 (step to 9.950% on 2/15/03) # 1,000,000 760,000
Nextel International, Inc., Zero Coupon Bond,
4/15/08 (step to 12.125% on 4/15/03) # 3,845,000 2,489,637
Nextlink Communications, Inc., Zero Coupon Bond,
4/15/08 (step to 9.450% on 4/15/03) # 1,500,000 877,500
Nextlink Communications, Inc., Zero Coupon Bond,
12/01/09 (step to 12.125% on 12/01/04)# 700,000 374,500
RCN Corp., Zero Coupon Bond, 10/15/07 (step to
11.125% on 10/15/02) # 3,250,000 1,755,000
RCN Corp., Zero Coupon Bond, 2/15/08 (step to
9.800% on 2/15/03) # 4,350,000 2,131,500
RCN Corp., Zero Coupon Bond, 7/01/08 (step to
11.000% on 7/01/03) # 2,100,000 1,008,000
Sprint Capital Corp., 6.875%, 11/15/28 500,000 431,605
Teligent, Inc., Zero Coupon Bond, 3/01/08 (step to
11.500% on 3/01/03) # 2,500,000 700,000
-----------
14,313,268
-----------
TEXTILE & APPAREL--0.3%
Kellwood Co., 7.625%, 10/15/17 2,000,000 1,103,340
Phillips Van Heusen Corp., 7.750%, 11/15/23 50,000 36,125
-----------
1,139,465
-----------
TOBACCO--1.7%
Philip Morris Cos., Inc., 7.750%, 1/15/27 8,150,000 7,131,087
-----------
TRANSPORTATION--0.2%
American President Cos. Ltd., 7.125%, 11/15/03 1,000,000 780,000
American President Cos. Ltd., 8.000%, 1/15/24 150,000 75,000
-----------
855,000
-----------
UTILITIES--1.6%
AES Corp., 8.875%, 11/01/27 1,000,000 865,000
Alabama Power Co., 5.375%, 10/01/08 100,000 86,847
Boston Edison Co., 7.800%, 3/15/23 500,000 467,090
KN Capital Trust, 7.630%, 4/15/28 1,000,000 868,510
KN Energy, Inc., 7.250%, 3/01/28 3,850,000 3,485,597
Texas-New Mexico Power Co., 6.250%, 1/15/09 1,000,000 878,730
-----------
6,651,774
-----------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $353,251,152) 326,605,547
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
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FACE
AMOUNT VALUE +
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<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
CONVERTIBLE BONDS-15.4%
AUTO & RELATED--0.9%
Exide Corp., 2.900%, 12/15/05 144A USD 2,159,000 $ 1,003,935
Magna International, Inc. Class A, 4.875%, 2/15/05 3,000,000 2,666,250
-----------
3,670,185
-----------
CANADIAN--0.0%
Rogers Communications, Inc., 2.000%, 11/26/05 250,000 225,920
-----------
COMPUTERS--0.7%
Cray Research, Inc., 6.125%, 2/01/11 463,000 199,090
Hutchinson Technology, Inc., 6.000%, 3/15/05 1,100,000 1,007,875
Maxtor Corp., 5.750%, 3/01/12 507,000 354,900
Quantum Corp.--DLT & Storage Systems,
7.000%, 8/01/04 1,000,000 815,000
Silicon Graphics, Inc., 5.250%, 9/01/04 300,000 205,500
Western Digital, Zero Coupon Bond, 2/18/18 144A 1,250,000 331,250
-----------
2,913,615
-----------
DIVERSIFIED OPERATIONS--1.8%
Ogden Corp., 5.750%, 10/20/02 850,000 742,842
Thermo Electron Corp., 4.250%, 1/01/03 144A 7,200,000 6,840,000
-----------
7,582,842
-----------
ELECTRONIC COMPONENTS--0.8%
EDO Corp., 7.000%, 12/15/11 500,000 387,500
Kent Electronics Corp., 4.500%, 9/01/04 3,650,000 3,008,549
-----------
3,396,049
-----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--0.5%
Park Electrochemical Corp., 5.500%, 3/01/06 1,400,000 1,890,000
Richardson Electronics Ltd., 7.250%, 12/15/06 300,000 246,000
-----------
2,136,000
-----------
ENVIRONMENTAL SERVICES--0.5%
Thermo TerraTech, Inc., 4.625%, 5/01/03 600,000 565,500
Thermo TerraTech, Inc., 4.625%, 5/01/03 144A 1,500,000 1,413,750
-----------
1,979,250
-----------
FINANCIAL SERVICES--0.6%
Bell Atlantic Financial Services, 5.750%, 4/01/03 2,100,000 2,035,740
Ford Motor Credit Co., 8.000%, 10/15/04 144A 500,000 505,595
-----------
2,541,335
-----------
FOREIGN ISSUER--0.9%
APP Finance VII Mauritius Ltd., Zero Coupon
Bond, 11/18/12 4,000,000 485,000
APP Finance VII Mauritius Ltd., 3.500%, 4/30/03 875,000 476,875
Bangkok Bank Public Co. Ltd., 4.589%, 3/03/04 1,975,000 992,437
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 34
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
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FACE
AMOUNT VALUE +
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<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
FOREIGN ISSUER--CONTINUED
Burns, Philp, 5.500%, 4/30/04 USD 1,000,000 $ 660,000
Empresas ICA Sociedad, 5.000%, 3/15/04 700,000 374,500
Loxley Public Co. Ltd., 2.500%, 4/04/01 ^ 700,000 252,000
Siam Commercial Bank Public Co. Ltd., 3.250%, 1/24/04 375,000 182,344
Ssangyong Oil Refining Co., Inc., 3.000%, 12/31/04 500,000 362,500
Versatel Telecom International NV, 4.000%, 12/17/04 EUR 250,000 193,830
-----------
3,979,486
-----------
FREIGHT TRANSPORTATION--0.0%
Worldway Corp., 6.250%, 4/15/11 USD 225,000 182,250
-----------
HEALTHCARE--BIOTECHNOLOGY--0.3%
Affymetrix, Inc., 4.750%, 2/15/07 144A 500,000 298,125
Human Genome Sciences, Inc., 3.750%, 3/15/07 144A 1,000,000 968,750
-----------
1,266,875
-----------
HEALTHCARE--DRUGS--0.8%
Dura Pharmaceuticals, Inc., 3.500%, 7/15/02 2,750,000 2,698,437
Glycomed, Inc., 7.500%, 1/01/03 550,000 445,500
NABI, Inc., 6.500%, 2/01/03 525,000 393,750
-----------
3,537,687
-----------
HEALTHCARE--PRODUCTS--0.1%
Centocor, Inc., 4.750%, 2/15/05 250,000 320,000
-----------
HEALTHCARE--SERVICES--0.3%
Healthsouth Corp., 3.250%, 4/01/03 1,280,000 1,075,200
Tenet Healthcare Corp., 6.000%, 12/01/05 250,000 211,250
-----------
1,286,450
-----------
HOME BUILDERS--0.1%
Lennar Corp., Zero Coupon Bond, 7/29/18 500,000 239,375
Schuler Homes, Inc., 6.500%, 1/15/03 400,000 356,000
-----------
595,375
-----------
INDUSTRIAL EQUIPMENT--0.1%
MascoTech, Inc., 4.500%, 12/15/03 500,000 350,000
-----------
INSURANCE--2.8%
Loews Corp., 3.125%, 9/15/07 13,275,000 11,910,595
-----------
MACHINERY--0.0%
Intevac, Inc., 6.500%, 3/01/04 150,000 74,438
-----------
MANUFACTURING--0.3%
Hexcel Corp., 7.000%, 8/01/03 500,000 510,000
Hexcel Corp., 7.000%, 8/01/11 750,000 577,500
-----------
1,087,500
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
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<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
MULTI-INDUSTRY--0.1%
Thermo Instrument Systems, Inc., 4.500%,
10/15/03 144A USD 500,000 $ 468,750
-----------
OFFICE EQUIPMENT--1.2%
Xerox Corp., 0.570%, 4/21/18 10,084,000 5,186,907
-----------
OIL & GAS--1.5%
Baker Hughes, Inc., Zero Coupon Bond, 5/05/08 6,100,000 5,019,080
Diamond Offshore Drilling, Inc., 3.750%, 2/15/07 500,000 563,875
Key Energy Group, Inc., 5.000%, 9/15/04 500,000 410,000
Noram Energy Corp., 6.000%, 3/15/12 250,000 232,500
-----------
6,225,455
-----------
PUBLISHING--0.1%
Scholastic Corp., 5.000%, 8/15/05 144A 600,000 649,500
-----------
REAL ESTATE INVESTMENT TRUSTS--0.5%
Federal Realty Investors Trust, 5.250%, 10/28/03 1,750,000 1,515,937
Rockefeller Properties, Zero Coupon Bond, 12/31/00 650,000 549,250
Sizeler Property Investors, Inc., 8.000%, 7/15/03 250,000 223,750
-----------
2,288,937
-----------
RESTAURANTS--0.1%
Einstein/Noah Bagel Corp., 7.250%, 6/01/04 ^ 750,000 427,500
-----------
TELECOMMUNICATIONS--0.4%
At Home Corp., 4.750%, 12/15/06 250,000 167,188
Broadband Technologies, Inc., 5.000%, 5/15/01 1,240,000 496,000
Efficient Networks, Inc., 5.000%, 3/15/05 100,000 63,500
NTL Communications, Inc., 5.750%, 12/15/09 1,250,000 865,625
-----------
1,592,313
-----------
TEXTILE & APPAREL--0.0%
Dixie Yarns, Inc., 7.000%, 5/15/12 166,000 97,733
-----------
TOTAL CONVERTIBLE BONDS
(Identified Cost $66,138,596) 65,972,947
-----------
TOTAL BONDS AND NOTES
(Identified Cost $419,389,748) 392,578,494
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS--0.1% OF NET ASSETS
OIL & GAS--0.1%
Chesapeake Energy Corp. * 53,500 384,531
Hvide Marine, Inc. * 20,817 158,730
-----------
543,261
-----------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 36
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
RESTAURANTS--0.0%
Advantica Restaurant Group, Inc. * 67,479 $ 40,065
-----------
TOTAL COMMON STOCKS
(Identified Cost $2,357,037) 583,326
-----------
PREFERRED STOCKS-3.3% OF NET ASSETS
NON-CONVERTIBLE PREFERRED STOCKS-1.9%
CHEMICALS--MAJOR--0.0%
E.I. du Pont DeNemours & Co., $3.50 300 16,050
-----------
REAL ESTATE INVESTMENT TRUSTS--1.2%
AMB Property Corp., 8.50% 16,300 386,106
Archstone Communities Trust, Series C, 8.625% 2,500 60,313
CarrAmerica Realty Corp., Series B, 8.570% 40,000 860,000
Colonial PropertiesTrust, Series A, 8.750% 22,400 480,200
Developers Diversified Realty Corp., 8.680% 5,300 113,950
Developers Diversified Realty Corp., Class C, 8.375% 26,800 564,475
Duke-Weeks Realty Corp., Series F, 8.000% 5,500 118,938
Equity Office Properties Trust, Series A, 8.980% 15,000 369,375
Equity Office Properties Trust, Series C, 8.625% 10,700 263,487
Equity Residential Properties Trust, Series C, 9.125% 15,000 370,312
Equity Residential Properties Trust, Series D, 8.600% 5,000 121,250
Equity Residential Properties Trust, Series L, 7.625% 9,200 201,250
First Industrial Realty Trust, Inc., Series B, 8.750% 4,200 95,813
First Industrial Realty Trust, Inc., Series D, 7.950% 5,600 116,900
First Industrial Realty Trust, Inc., Series E, 7.900% 4,600 96,600
Highwoods Properties, Inc., Series B, 8.000% 11,300 235,181
Highwoods Properties, Inc., Series D, 8.000% 12,400 252,650
ProLogis Trust, Series D, 7.920% 3,400 72,675
ProLogis Trust, Series E, 8.750% 5,000 117,813
Public Storage, Inc., Series K, 8.250% 7,000 167,562
Public Storage, Inc., Series L, 8.250% 10,000 241,250
Shurgard Storage Centers, Inc., Series C, 8.700% 1,500 33,000
-----------
5,339,100
-----------
TELECOMMUNICATIONS--0.3%
Adelphia Business Solutions, Inc., Series B, 12.875% PIK 2,390 1,195,058
-----------
UTILITIES--0.4%
Del Marva Power & Light Co., 4.000% 434 23,436
Entergy Louisiana, Inc., 4.440% 830 45,650
Entergy New Orleans, Inc., 4.360% 90 4,320
Entergy New Orleans, Inc., 4.750% 2,876 156,023
Jersey Central Power & Light Co., 4.000% 850 50,575
MDU Resources Group, Inc., 5.100% 900 80,100
Niagara Mohawk Power Corp., 3.400% 5,100 239,700
Niagara Mohawk Power Corp., 3.600% 200 8,800
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS-CONTINUED
UTILITIES--CONTINUED
Niagara Mohawk Power Corp., 3.900% 250 $ 12,000
Niagara Mohawk Power Corp., 4.850% 2,850 193,800
PG&E Corp., Series E, 5.000% 18,900 340,200
Public Service Electric & Gas Co., 4.180% 1,950 113,831
Union Electric Co., $4.50 6,500 377,000
Xcel Energy, Inc. 4.080% 100 5,950
-----------
1,651,385
-----------
TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Identified Cost $8,449,996) 8,201,593
-----------
CONVERTIBLE PREFERRED STOCKS-1.4%
AEROSPACE/DEFENSE--0.2%
Coltec Capital Trust, 5.250% 17,500 840,000
-----------
AUTO & RELATED--0.0%
Federal-Mogul Corp. , 7.000% 15,000 112,500
-----------
BUILDING MATERIALS--0.1%
Owens Corning, 6.500% ^ 83,000 560,250
-----------
FINANCIAL SERVICES--0.2%
Hercules Trust I, 6.500% 750 438,750
Newell Financial Trust I, 5.250% 5,000 183,750
-----------
622,500
-----------
FOREIGN ISSUER--0.1%
Philippine Long Distance Telephone Co., $3.50 GDS 10,000 361,250
-----------
METALS--0.0%
Bethlehem Steel Corp., $3.50 7,500 97,500
-----------
OIL & GAS--0.6%
EVI, Inc. , 5.000% 53,500 2,561,313
-----------
REAL ESTATE INVESTMENT TRUSTS--0.2%
Equity Residential Properties Trust, 7.250% 28,000 633,500
-----------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified Cost $7,439,767) 5,788,813
-----------
TOTAL PREFERRED STOCKS
(Identified Cost $15,889,763) 13,990,406
-----------
WARRANTS--0.0% OF NET ASSETS
FOREST & PAPER PRODUCTS--0.0%
Asia Pulp & Paper Ltd., expiring 03/15/05 144A 2,900 0
-----------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 38
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
-----------------------------------------------------------------------------------------------------------
<S> <C> <C>
WARRANTS--CONTINUED
OIL & GAS--0.0%
Hvide Marine, Inc., expiring 06/30/07 144A* 2,822 $ 5,644
Hvide Marine, Inc., expiring 12/15/03 * 761 1,902
-----------
7,546
-----------
TOTAL WARRANTS
(Identified Cost $6,531) 7,546
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE
AMOUNT
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENT--1.7% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co., dated
9/29/00 at 5.250% to be repurchased at $7,415,243 on 10/02/00
collateralized by $7,585,000 U.S. Treasury Note, 5.500% due
08/31/01 with a value of $7,565,089 USD 7,412,000 7,412,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $7,412,000) 7,412,000
------------
TOTAL INVESTMENTS--96.9%
(IDENTIFIED COST $445,055,079) @ 414,571,772
Cash and Other Assets, Less Liabilities--3.1% 13,158,016
------------
NET ASSETS--100% $427,729,788
============
</TABLE>
+ See Note 1.
# Step Bond: Coupon is zero or below market rate for an initial period and
then increases at a specified date and rate.
144A Securities exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
PIK All or a portion of income may be received as additional securities.
^ Security in default.
* Non-income producing security
@ At September 30, 2000, the net unrealized depreciation on investments
based on cost of $445,136,792 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 $15,087,710 and $45,652,730, respectively,
resulting in net unrealized depreciation of $30,565,020.
Key to Abbreviations:
AUD: Australian Dollar
CAD: Canadian Dollar
EUR: Euro
GDS: Global Depositary Shares
NZD: New Zealand Dollar
USD: United States Dollar
ZAR: South African Rand
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-72.3% OF NET ASSETS
NON-CONVERTIBLE BONDS--52.5%
AUTO & RELATED--0.7%
Federal-Mogul Corp., 7.500%, 1/15/09 USD 500,000 $ 190,000
Federal-Mogul Corp., 7.875%, 7/01/10 250,000 95,000
---------------
285,000
---------------
BROADCASTING--1.2%
Fox Family Worldwide, Inc., Zero Coupon Bond,
11/01/07 (step to 10.250% on 11/01/02) # 675,000 491,062
---------------
CANADIAN--3.6%
Call-Net Enterprises, Inc., Zero Coupon Bond,
5/15/09 (step to 10.800% on 5/15/04) # 500,000 147,500
Clearnet Communications, Inc., Zero Coupon Bond,
8/13/07 (step to 11.750% on 8/13/02) # CAD 815,000 476,799
Clearnet Communications, Inc., Zero Coupon Bond,
2/15/09 (step to 10.750% on 2/15/04) # 350,000 188,472
Clearnet Communications, Inc., Zero Coupon Bond,
5/01/09 (step to 10.125% on 5/1/04) # USD 250,000 198,750
Microcell Telecommunications, Inc., Zero Coupon Bond,
10/15/07 (step to 11.125% on 10/15/02) # CAD 785,000 399,232
---------------
1,410,753
---------------
COMMUNICATIONS--1.8%
Charter Communications Holdings, Zero Coupon Bond,
4/01/11 (step to 9.920% on 4/04/04) # USD 1,250,000 725,000
---------------
COMPUTER SERVICES--0.7%
Rhythms NetConnections, Inc., Series B,
Zero Coupon Bond, 5/15/08
(step to 13.500% on 5/15/03) # 750,000 285,000
---------------
ELECTRONIC COMPONENTS--0.1%
Zenith Electronics Corp., 8.190%, 11/01/09 145,000 42,050
---------------
ENTERTAINMENT--0.1%
Boston Celtics Ltd., 6.000%, 6/30/38 44,000 25,080
---------------
FOOD & BEVERAGE--0.7%
Borden, Inc., 7.875%, 2/15/23 370,000 275,380
---------------
FOREIGN GOVERNMENT/AGENCY--8.1%
City of Buenos Aires, 10.500%, 5/28/04 144A ARS 250,000 217,500
Republic of Argentina, 8.875%, 3/01/29 USD 325,000 216,018
Republic of Brazil, 10.125%, 5/15/27 675,000 523,125
Republic of Brazil C Bond, 8.000%, 4/15/14 PIK 677,273 518,114
Republic of Ecuador, 4.000%, 8/15/30 144A 153,000 55,845
Republic of Ecuador, 12.000%, 11/15/12 144A 187,000 130,900
Republic of Panama, 4.500%, 7/17/14
(step to 4.750% on 7/17/01) # 300,000 240,063
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 40
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
FOREIGN GOVERNMENT/AGENCY--CONTINUED
Republic of Peru, 3.750%, 3/07/17
(step to 4.000% on 3/07/01) # USD 700,000 $ 393,750
Republic of South Africa, 13.500%, 9/15/15 ZAR 1,500,000 207,548
Republic of Venezuela, 9.250%, 9/15/27 USD 1,050,000 710,115
---------------
3,212,978
---------------
FOREIGN ISSUER--13.5%
Alestra SA de RL de CV, 12.125%, 5/15/06 125,000 121,250
APP China Group Ltd., 14.000%, 3/15/10 144A 250,000 115,000
Bangko Sentral Pilipinas, 8.600%, 6/15/27 525,000 357,000
Bangkok Bank Public Co. Ltd., 9.025%, 3/15/29 144A 400,000 314,000
Cablevision SA, 13.750%, 4/30/07 275,000 248,187
Compania de Alimentos Fargo SA, 13.250%, 8/01/08 625,000 500,000
Espirito Santo Centrais Eletricas SA, 10.000%, 7/15/07 375,000 307,500
Jazztel Plc, 13.250%, 12/15/09 EUR 250,000 196,556
Korea Electric Power Corp., 7.400%, 4/01/16 USD 246,694 227,087
Murrin Murrin Holdings Property Ltd., 9.375%, 8/31/07 75,000 67,500
Petroleos Mexicanos, 8.625%, 12/01/23 144A 275,000 247,500
Petroleos Mexicanos, 9.250%, 3/30/18 475,000 462,531
Philippine Long Distance Telephone Co.,
8.350%, 3/06/17 175,000 117,953
Pindo Deli Finance Mauritius Ltd., 10.750%, 10/01/07 600,000 294,000
Pindo Deli Finance Mauritius Ltd., 10.875%, 10/01/27 600,000 228,000
Quezon Power Philippines Co., 8.860%, 6/15/17 325,000 260,000
Siam Commercial Bank Public Co. Ltd., 7.500%,
3/15/06 144A 275,000 236,500
Tata Electric Co., 8.500%, 8/19/17 144A 200,000 165,396
Tenaga Nasional Berhad, 7.500%, 11/01/25 144A 335,000 283,248
TFM SA de CV, Zero Coupon Bond, 6/15/09
(step to 11.750% on 6/15/02) # 250,000 188,750
Tjiwi Kimia Mauritius Ltd., 10.000%, 8/01/04 250,000 145,000
Total Access Communication Public Co. Ltd., 8.375%,
11/04/06 144A 300,000 264,000
---------------
5,346,958
---------------
INSURANCE--0.3%
Conseco, Inc., 8.500%, 10/15/02 150,000 119,250
---------------
OIL & GAS--3.1%
Chesapeake Energy Corp., 9.625%, 5/01/05 425,000 427,656
Chesapeake Energy Corp., Series B, 7.875%, 3/15/04 200,000 188,000
Hvide Marine, Inc., 12.500%, 6/30/07 144A 251,354 216,165
Pioneer Natural Resources Co., 7.200%, 1/15/28 500,000 397,500
---------------
1,229,321
---------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
OIL & GAS DRILLING EQUIPMENT--2.3%
R & B Falcon Corp., 6.750%, 4/15/05 USD 250,000 $ 235,000
R & B Falcon Corp., Series B, 7.375%, 4/15/18 750,000 668,437
---------------
903,437
---------------
OIL & GAS REFINING--0.1%
Clark Oil & Refining Corp., 9.500%, 9/15/04 48,000 43,200
---------------
RAIL--TRANSPORT--0.2%
Missouri Pacific Railroad Co., 5.000%, 1/01/45 172,000 89,225
---------------
RETAIL--GENERAL--3.2%
Dillard's, Inc., 6.430%, 8/01/04 250,000 202,582
Dillon Read Structured Finance Corp., 7.430%, 8/15/18 250,000 161,250
Dillon Read Structured Finance Corp., 8.375%, 8/15/15 250,000 181,775
Venator Group, Inc., 7.000%, 10/15/02 125,000 113,695
Woolworth Corp., 8.500%, 1/15/22 910,000 591,500
---------------
1,250,802
---------------
RETAIL--SPECIALTY--0.2%
Musicland Group, Inc., Series B, 9.875%, 3/15/08 100,000 83,500
---------------
STEEL--0.0%
Geneva Steel Co., 9.500%, 1/15/04 ^ 101,000 15,655
---------------
TELECOMMUNICATIONS--11.3%
Covad Communications Group, Inc., 12.500%,
2/15/09 144A 250,000 188,750
Intermedia Communications, Inc., Zero Coupon Bond,
3/01/09 (step to 12.250% on 3/01/04) # 750,000 502,500
Level 3 Communications, Inc., Zero Coupon Bond,
12/01/08 (step to 10.500% on 12/01/03) # 1,000,000 590,000
Level 3 Communications, Inc., Zero Coupon Bond,
3/15/10 (step to 12.875% on 03/15/05) # 500,000 267,500
McCaw International Ltd., Zero Coupon Bond, 4/15/07
(step to 13.000% on 4/15/02) # 200,000 154,000
Nextel Communications, Inc., Zero Coupon Bond,
10/31/07 (step to 9.750% on 10/31/02) # 400,000 312,000
Nextel Communications, Inc., Zero Coupon Bond,
2/15/08 (step to 9.950% on 2/15/03) # 400,000 304,000
Nextel International, Inc., Zero Coupon Bond,
4/15/08 (step to 12.125% on 4/15/03) # 650,000 420,875
Nextlink Communications, Inc., Zero Coupon Bond,
4/15/08 (step to 9.450% on 4/15/03) # 725,000 424,125
Rcn Corp., Zero Coupon Bond,
2/15/08 (step to 9.800% on 2/15/03) # 1,350,000 661,500
Rcn Corp., Zero Coupon Bond,
7/01/08 (step to 11.000% on 7/01/03) # 150,000 72,000
Teligent, Inc., Zero Coupon Bond,
3/01/08 (step to 11.500% on 3/01/03) # 1,425,000 399,000
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 42
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
TELECOMMUNICATIONS--CONTINUED
Triton Communications LLC, Zero Coupon Bond,
5/01/08 (step to 11.000% on 5/01/03) # USD 150,000 $ 114,000
US Unwired, Inc., Series B, 13.375%,
11/01/09 (step to 3.375% on 11/01/04) # 100,000 53,000
---------------
4,463,250
---------------
TEXTILE & APPAREL--0.8%
Burlington Industries, Inc., 7.250%, 9/15/05 250,000 118,750
Phillips Van Heusen Corp., 7.750%, 11/15/23 275,000 198,688
---------------
317,438
---------------
TOBACCO--0.5%
R.J. Reynolds Tobacco Holdings, Inc., 7.625%, 9/15/03 219,000 207,776
---------------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $23,236,004) 20,822,115
---------------
CONVERTIBLE BONDS--19.8%
AUTO & RELATED--0.8%
Exide Corp., 2.900%, 12/15/05 144A 660,000 306,900
---------------
CANADIAN--1.1%
Rogers Communications, Inc., 2.000%, 11/26/05 485,000 438,285
---------------
COMMUNICATIONS EQUIPMENT--0.5%
Efficient Networks, Inc., 5.000%, 3/15/05 144A 300,000 190,500
---------------
COMPUTERS--2.1%
Cray Research, Inc., 6.125%, 2/01/11 140,000 60,200
Maxtor Corp., 5.750%, 3/01/12 420,000 294,000
Quantum Corp. - DLT & Storage Systems,
7.000%, 8/01/04 100,000 81,500
S3, Inc., 5.750%, 10/01/03 112,000 98,840
Telxon Corp., 5.750%, 1/01/03 181,000 160,411
Western Digital, Zero Coupon Bond, 2/18/18 250,000 66,250
Western Digital, Zero Coupon Bond, 2/18/18 144A 223,000 59,095
---------------
820,296
---------------
ELECTRONIC COMPONENTS--0.8%
Edo Corp., 7.000%, 12/15/11 100,000 77,500
Kent Electronics Corp., 4.500%, 9/01/04 265,000 218,429
---------------
295,929
---------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--0.9%
Kulicke and Soffa Industries, Inc., 4.750%, 12/15/06 150,000 126,938
Park Electrochemical Corp., 5.500%, 3/01/06 100,000 135,000
Richardson Electronics Ltd., 7.250%, 12/15/06 100,000 82,000
---------------
343,938
---------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
FOREIGN ISSUER--2.1%
APP Finance VII Mauritius Ltd., 3.500%, 4/30/03 USD 125,000 $ 68,125
APP Finance VII Mauritius Ltd., 3.500%, 4/30/03 144A 140,000 76,300
Bangkok Bank Public Co. Ltd., 4.589%, 3/03/04 320,000 160,800
Empresas Ica Sociedad, 5.000%, 3/15/04 250,000 133,750
Loxley Public Co. Ltd., 2.500%, 4/04/01 ^ 200,000 72,000
Siam Commercial Bank Public Co. Ltd.,
3.250%, 1/24/04 525,000 255,281
Ssangyong Oil Refining Co., Inc., 3.000%, 12/31/04 110,000 79,750
---------------
846,006
---------------
FREIGHT TRANSPORTATION--0.1%
Worldway Corp., 6.250%, 4/15/11 25,000 20,250
---------------
HEALTHCARE--BIOTECHNOLOGY--1.3%
Affymetrix, Inc., 4.750%, 2/15/07 144A 150,000 89,438
Human Genome Sciences, Inc., 3.750%, 3/15/07 144A 450,000 435,937
---------------
525,375
---------------
HEALTHCARE--DRUGS--2.6%
Dura Pharmaceuticals, Inc., 3.500%, 7/15/02 646,000 633,887
Glycomed, Inc., 7.500%, 1/01/03 184,000 149,040
NABI, Inc., 6.500%, 2/01/03 320,000 240,000
---------------
1,022,927
---------------
HEALTHCARE--PRODUCTS--0.3%
Centocor, Inc., 4.750%, 2/15/05 100,000 128,000
---------------
HEALTHCARE--SERVICES--1.9%
Healthsouth Corp., 3.250%, 4/01/03 100,000 84,000
Medical Care International, Inc., 6.750%, 10/01/06 484,000 441,650
Tenet Healthcare Corp., 6.000%, 12/01/05 262,000 221,390
---------------
747,040
---------------
HOME BUILDERS--0.4%
Schuler Homes, Inc., 6.500%, 1/15/03 182,000 161,980
---------------
HOTELS--0.5%
Hilton Hotels Corp., 5.000%, 5/15/06 250,000 210,625
---------------
INDUSTRIAL EQUIPMENT--0.9%
MascoTech, Inc., 4.500%, 12/15/03 525,000 367,500
---------------
INSURANCE--1.2%
Loews Corp., 3.125%, 9/15/07 525,000 471,040
---------------
MACHINERY--0.1%
Intevac, Inc., 6.500%, 3/01/04 56,000 27,790
---------------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 44
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BONDS AND NOTES-CONTINUED
MANUFACTURING--0.6%
Hexcel Corp., 7.000%, 8/01/03 USD 156,000 $ 159,120
Hexcel Corp., 7.000%, 8/01/11 98,000 75,460
---------------
234,580
---------------
OIL & GAS--1.0%
Key Energy Group, Inc., 5.000%, 9/15/04 500,000 410,000
---------------
RESTAURANTS--0.1%
Einstein/Noah Bagel Corp., 7.250%, 6/01/04 ^ 70,000 39,900
---------------
RETAIL--SPECIALTY--0.1%
CML Group, Inc., 5.500%, 1/15/03 ^ 81,000 51
Jacobson Stores, Inc., 6.750%, 12/15/11 56,000 39,200
---------------
39,251
---------------
TELECOMMUNICATIONS--0.4%
Broadband Technologies, Inc., 5.000%, 5/15/01 415,000 166,000
---------------
TEXTILE & APPAREL--0.0%
Dixie Yarns, Inc., 7.000%, 5/15/12 30,000 17,663
---------------
TOTAL CONVERTIBLE BONDS
(Identified Cost $8,319,753) 7,831,775
---------------
TOTAL BONDS AND NOTES
(Identified Cost $31,555,757) 28,653,890
---------------
<CAPTION>
SHARES
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-4.3% OF NET ASSETS
FOREIGN ISSUER--0.7%
Sappi Ltd. ADR 34,500 252,281
---------------
OIL & GAS--2.1%
Chesapeake Energy Corp. * 35,725 256,773
Hvide Marine, Inc. * 6,793 51,797
Trico Marine Services, Inc. 33,866 537,623
---------------
846,193
---------------
REAL ESTATE INVESTMENT TRUSTS--0.7%
Associated Estates Realty Corp. 12,600 101,588
Developers Diversified Realty Corp. 14,550 187,331
---------------
288,919
---------------
UTILITIES--0.8%
Wisconsin Energy Corp. 15,000 299,062
---------------
TOTAL COMMON STOCKS
(Identified Cost $1,683,663) 1,686,455
---------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS--4.4% OF NET ASSETS
NON-CONVERTIBLE PREFERRED STOCKS--1.5%
FOREIGN ISSUER--0.0%
Siam Commercial Bank Public Co. Ltd., 5.250% 144A 30,000 $ 11,570
---------------
REAL ESTATE INVESTMENT TRUSTS--0.4%
JDN Realty Corp., Series A, 9.375% 3,800 79,562
Meditrust Corp., Series A, 9.00% 5,250 80,719
---------------
160,281
---------------
TELECOMMUNICATIONS--0.4%
Adelphia Business Solutions, Inc., Series B, 12.875% PIK 303 151,447
---------------
UTILITIES--0.7%
Central Maine Power Co., 3.500% 1,320 59,400
Niagara Mohawk Power Corp., 3.400% 1,560 73,320
Niagara Mohawk Power Corp., 3.600% 960 42,240
Niagara Mohawk Power Corp., 4.100% 1,890 105,840
Niagara Mohawk Power Corp., 5.250% 100 7,250
---------------
288,050
---------------
TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Identified Cost $760,659) 611,348
---------------
CONVERTIBLE PREFERRED STOCKS--2.9%
AUTO & RELATED--0.1%
Federal-Mogul Corp. , 7.000% 2,500 18,750
---------------
BUILDING MATERIALS--0.3%
Owens Corning, 6.500% ^ 17,500 118,125
---------------
COMPUTER SOFTWARE--0.1%
Rhythms NetConnections, Inc. 6.750% 144A 1,000 30,875
---------------
FINANCIAL SERVICES--0.7%
Hercules Trust I, 6.500% 500 292,500
---------------
FOREIGN ISSUER--0.8%
Philippine Long Distance Telephone Co., $3.50 GDS 8,450 305,256
---------------
METALS--0.3%
Bethlehem Steel Corp., $3.50 10,000 130,000
---------------
OIL & GAS--0.5%
Western Gas Resources, Inc., $2.625 5,000 189,375
---------------
RETAIL--GENERAL--0.1%
K Mart Financing Corp., 7.750% 1,500 46,688
---------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified Cost $1,572,174) 1,131,569
---------------
TOTAL PREFERRED STOCKS
(Identified Cost $2,332,833) 1,742,917
---------------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 46
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
WARRANTS--0.0% OF NET ASSETS
FOREIGN ISSUER--0.0%
Siam Commercial Bank Public Co. Ltd.,
expiring 5/10/02 * 30,000 $ 2,136
---------------
FOREST & PAPER PRODUCTS--0.0%
Asia Pulp & Paper Ltd., expiring 03/15/05 144A 250 0
---------------
OIL & GAS--0.0%
Hvide Marine, Inc., expiring 06/30/07 144A* 1,411 2,822
Hvide Marine, Inc., expiring 12/15/03 * 163 408
---------------
3,230
---------------
TOTAL WARRANTS
(Identified Cost $1,428) 5,366
---------------
<CAPTION>
FACE
AMOUNT
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS--2.1% OF NET ASSETS
Repurchase Agreement with State Street Bank and
Trust Co., dated 9/29/00 at 5.250% to be repurchased at
$786,344 on 10/02/00 collateralized by $795,000 U.S.
Treasury Note, 6.250% due 1/31/02 with a value
of $803,944 USD 786,000 786,000
---------------
COMMERCIAL PAPER--0.1%
Bell Sports Corp., 4.250%, 11/15/00 53,000 52,537
---------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $838,537) 838,537
---------------
TOTAL INVESTMENTS--83.1%
(IDENTIFIED COST $36,412,218) @ 32,927,165
Cash and Other Assets, Less Liabilities--16.9% 6,691,340
---------------
NET ASSETS--100% $ 39,618,505
---------------
---------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
+ 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.
^ Security in default.
* Non-income producing security
@ At September 30, 2000, the net unrealized depreciation on investments based
on cost of $36,524,081 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 $1,892,475 and $5,489,391, respectively, resulting in net
unrealized depreciation of $3,596,916.
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.
LOOMIS SAYLES INVESTMENT TRUST 48
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-98.3% OF NET ASSETS
AEROSPACE/DEFENSE--2.8%
Lockheed Martin Corp., 7.700%, 6/15/08 $200,000 $ 201,296
Raytheon Co., 6.000%, 12/15/10 100,000 88,120
Raytheon Co., 6.300%, 3/15/05 300,000 285,837
----------
575,253
----------
AUTO & RELATED--3.2%
Cummins Engine Co., Inc., 6.250%, 3/01/03 200,000 191,640
Dana Corp., 6.250%, 3/01/04 200,000 190,538
Delphi Automotive Systems Corp., 6.125%, 5/01/04 150,000 143,157
TRW, Inc., 6.625%, 6/01/04 150,000 144,648
----------
669,983
----------
BANKS/SAVINGS & LOANS--3.6%
Bank of America Corp., 7.200%, 4/15/06 50,000 50,025
Capital One Bank, 6.375%, 2/15/03 590,000 575,050
Capital One Bank, 6.970%, 2/04/02 120,000 119,228
----------
744,303
----------
BEVERAGES--1.3%
Anheuser Busch Cos., Inc., 6.750%, 6/01/05 40,000 39,310
Coca-Cola Enterprises, Inc., 5.750%, 11/01/08 250,000 225,098
----------
264,408
----------
BROADCASTING--1.1%
Comcast Cable Communications, 6.200%, 11/15/08 250,000 229,618
----------
CHEMICALS--MAJOR--1.0%
Rohm & Haas Co., 6.950%, 7/15/04 205,000 204,656
----------
COMPUTER HARDWARE--0.9%
International Business Machines Corp.,
6.000%, 12/18/13 75,000 67,244
Sun Microsystems, Inc., 7.350%, 8/15/04 110,000 110,337
----------
177,581
----------
DATA PROCESSING SERVICES--1.4%
Ceridian Corp., 7.250%, 6/01/04 300,000 290,927
----------
FINANCIAL SERVICES--20.8%
Asset Securitization Corp., 7.010%, 10/13/26 214,739 215,000
Commercial Credit Co., 6.500%, 6/01/05 50,000 49,082
Duke Capital Corp., 7.250%, 10/01/04 150,000 150,968
EQCC Home Equity Loan Trust, 5.150%, 9/15/08 63,783 61,881
Finova Capital Corp., 7.250%, 11/08/04 200,000 150,000
Ford Credit Auto Owner Trust, 6.870%, 1/15/04 400,000 400,248
Ford Motor Credit Co., 5.800%, 1/12/09 600,000 530,868
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
FINANCIAL SERVICES--CONTINUED
Ford Motor Credit Co., 7.500%, 1/15/03 $ 50,000 $ 50,452
Ford Motor Credit Co. Class B, 7.370%, 7/15/04 200,000 202,472
General Motors Acceptance Corp., 6.810%, 8/13/01 100,000 100,028
Green Tree Financial Corp., 6.080%, 12/01/30 350,000 331,075
Green Tree Financial Corp., 6.160%, 2/01/31 300,000 282,654
Household Finance Corp., 5.875%, 9/25/04 450,000 431,631
Navistar Financial Corp., 6.220%, 10/17/05 203,327 201,184
Prudential Home Mortgage Securities Co.,
6.000%, 1/25/09 200,000 193,186
Sears Roebuck Acceptance Corp., 7.125%, 6/30/03 75,000 74,734
US West Capital Funding, Inc., 6.375%, 7/15/08 300,000 279,630
Vanderbilt Mortgage & Finance, Inc., 6.545%, 4/07/18 600,000 582,960
----------
4,288,053
----------
FOREIGN GOVERNMENT/AGENCY--4.8%
Government of Poland, 6.000%, 10/27/14
(step to 7.000% on 10/27/02) # 475,000 437,000
Republic of South Africa, 8.375%, 10/17/06 550,000 542,438
----------
979,438
----------
FOREIGN ISSUER--9.5%
Enersis SA, 6.900%, 12/01/06 50,000 46,384
Industrial Finance Corp. of Thailand,
7.375%, 1/14/07 144A 250,000 240,847
Korea Electric Power Corp., 7.750%, 4/01/13 150,000 142,096
PDVSDA Finance Ltd., 6.450%, 2/15/04 250,000 232,766
PDVSDA Finance Ltd., 6.800%, 11/15/08 150,000 128,625
Pemex Finance Ltd., 9.140%, 8/15/04 150,000 154,389
Perez Companc SA, 8.125%, 7/15/07 144A 525,000 451,500
Pohang Iron & Steel Co. Ltd., 7.125%, 11/01/06 250,000 240,347
Tenaga Nasional Berhad, 7.625%, 4/29/07 144A 325,000 315,637
----------
1,952,591
----------
FOREST & PAPER PRODUCTS--0.7%
Temple-Inland, Inc., 6.750%, 3/01/09 150,000 139,948
----------
GOVERNMENT AGENCIES--9.4%
Federal Home Loan Mortgage Corp., 5.500%, 3/01/13 174,914 165,374
Federal Home Loan Mortgage Corp., 6.000%, 11/01/12 404,181 390,540
Federal Home Loan Mortgage Corp., 6.875%, 1/15/05 700,000 707,546
Federal National Mortgage Association, 5.500%, 4/25/06 94,897 93,562
Federal National Mortgage Association, 6.500%, 8/15/04 450,000 448,803
Federal National Mortgage Association, 6.500%, 2/01/11 48,378 47,758
Federal National Mortgage Association, 7.125%, 2/15/05 75,000 76,523
----------
1,930,106
----------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 50
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
HEALTHCARE--PRODUCTS--1.0%
Bausch & Lomb, Inc., 6.500%, 8/01/05 $250,000 $ 209,750
----------
OIL & GAS--6.4%
El Paso Energy Corp., 6.750%, 5/15/09 150,000 142,605
Kinder Morgan, Inc., 6.650%, 3/01/05 165,000 160,913
Phillips Petroleum Co., 6.375%, 3/30/09 250,000 232,850
Pioneer Natural Resources Co., 6.500%, 1/15/08 400,000 350,044
R & B Falcon Corp., 6.500%, 4/15/03 450,000 429,187
----------
1,315,599
----------
RAIL--TRANSPORT--0.9%
Burlington Northern Santa Fe Corp., 6.125%, 3/15/09 200,000 180,104
----------
REAL ESTATE INVESTMENT TRUSTS--9.7%
American Health Properties, Inc., 7.050%, 1/15/02 525,000 513,088
Highwoods Realty LP, 6.750%, 12/01/03 500,000 481,085
Oasis Residential, Inc., 6.750%, 11/15/01 500,000 492,845
Trinet Corporate Realty Trust, Inc., 6.750%, 3/01/03 550,000 507,347
----------
1,994,365
----------
RETAIL--GENERAL--0.6%
J.C. Penney Co., Inc., 7.600%, 4/01/07 150,000 121,262
----------
SECURITIES--9.3%
Bear Stearns Cos., Inc., 6.125%, 2/01/03 250,000 245,013
Bear Stearns Cos., Inc., 6.150%, 3/02/04 350,000 338,019
Donaldson, Lufkin & Jenrette, Inc., 6.875%, 11/01/05 75,000 73,637
Lehman Brothers Holdings, Inc., 6.125%, 2/01/01 75,000 74,731
Lehman Brothers Holdings, Inc., 7.125%, 9/15/03 540,000 540,977
Morgan Stanley Dean Witter & Co., 5.625%, 1/20/04 250,000 240,572
Nomura Asset Securities Corp., 6.280%, 3/17/28 406,617 398,235
----------
1,911,184
----------
TELECOMMUNICATIONS--5.2%
Pacific Bell, 7.000%, 7/15/04 50,000 50,128
Sprint Capital Corp., 5.875%, 5/01/04 150,000 143,397
Sprint Capital Corp., 6.125%, 11/15/08 100,000 90,330
Sprint Capital Corp., 6.375%, 5/01/09 300,000 273,588
TCI Communications, Inc., 6.875%, 2/15/06 525,000 512,946
----------
1,070,389
----------
TEXTILE & APPAREL--0.8%
Tommy Hilfiger Corp., 6.500%, 6/01/03 200,000 161,203
----------
TOBACCO--0.2%
Philip Morris Cos., Inc., 7.250%, 9/15/01 50,000 49,663
----------
TRUCKING & LEASING--1.7%
Amerco, 7.490%, 9/18/01 350,000 351,169
----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
UTILITIES--2.0%
Consolidated Edison Co., Inc., 6.625%, 7/01/05 $ 75,000 $ 73,664
Pennsylvania Electric Co., 5.750%, 4/01/04 200,000 191,726
Texas Utilities Co., 5.940%, 10/15/01 150,000 148,300
----------
413,690
----------
TOTAL BONDS AND NOTES
(Identified Cost $20,659,332) 20,225,243
----------
TOTAL INVESTMENTS--98.3%
(IDENTIFIED COST $20,659,332) @ 20,225,243
Cash and Other Assets, Less Liabilities--1.7% 354,536
-----------
NET ASSETS--100% $20,579,779
===========
</TABLE>
+ See Note 1.
# Step Bond: Coupon is zero or below market rate for an initial period and
then increases at a specified date and rate.
144A Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
@ At September 30, 2000, the net unrealized depreciation on investments
based on cost of $20,659,332 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 $133,041 and $567,130, respectively, resulting in
net unrealized depreciation of $434,089.
See accompanying notes to financial statements.
LOOMIS SAYLES INVESTMENT TRUST 52
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-95.2% OF NET ASSETS
NON-CONVERTIBLE BONDS--79.7%
AEROSPACE/DEFENSE--1.7%
Raytheon Co., 6.400%, 12/15/18 USD 2,500,000 $ 2,120,225
Raytheon Co., 7.200%, 8/15/27 500,000 438,575
------------
2,558,800
------------
AIRLINES--1.2%
Delta Air Lines, Inc., 8.300%, 12/15/29 2,000,000 1,807,660
------------
AIR TRANSPORT--2.4%
Atlas Air, Inc., 7.680%, 1/02/14 3,884,722 3,734,772
------------
AUTO & RELATED--3.7%
Dana Corp., 7.000%, 3/15/28 1,000,000 830,800
Dana Corp., 7.000%, 3/01/29 1,000,000 802,940
Delphi Automotive Systems Corp., 7.125%, 5/01/29 1,825,000 1,554,060
Ford Motor Co., 6.375%, 2/01/29 2,000,000 1,610,020
TRW, Inc., 6.650%, 1/15/28 250,000 198,603
TRW, Inc., 7.750%, 6/01/29 750,000 676,549
------------
5,672,972
------------
BANKS/SAVINGS & LOANS--1.2%
First Union Institutional Trust, 7.850%, 1/01/27 500,000 434,895
Key Bank NA, 6.950%, 2/01/28 500,000 441,145
Keycorp Capital II, 6.875%, 3/17/29 500,000 388,785
Keycorp Capital III, 7.750%, 7/15/29 650,000 562,803
------------
1,827,628
------------
BUILDING MATERIALS--0.1%
Owens Corning, 7.500%, 8/01/18 ^ 500,000 143,750
------------
CANADIAN--16.9%
Canadian Government, Zero Coupon Bond, 6/01/25 CAD 31,550,000 5,243,861
MacMillan Bloedel Ltd., 7.700%, 2/15/26 USD 305,000 288,252
Milit-Air, Inc., 5.750%, 6/30/19 CAD 1,800,000 1,148,089
New Brunswick FM Project, Zero Coupon Bond,
11/30/27 (step to 6.470% on 5/30/03) 144A # 500,000 273,850
Ontario Hydro, Zero Coupon Bond, 10/15/21 850,000 147,114
Province of Alberta, 5.000%, 12/16/08 2,000,000 1,243,066
Province of Alberta, 5.400%, 6/15/10 2,327,500 1,476,404
Province of Alberta, 5.930%, 9/16/16 681,750 445,626
Province of British Columbia,
Zero Coupon Bond, 8/23/13 5,000,000 1,451,070
Province of British Columbia,
Zero Coupon Bond, 6/09/14 1,000,000 275,761
Province of British Columbia,
Zero Coupon Bond, 9/05/20 3,300,000 598,945
Province of British Columbia,
Zero Coupon Bond, 6/09/22 4,000,000 654,248
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
CANADIAN--CONTINUED
Province of British Columbia,
Zero Coupon Bond, 8/19/22 CAD 4,195,000 $ 678,139
Province of British Columbia,
Zero Coupon Bond, 8/23/24 10,000,000 1,430,395
Province of British Columbia,
Zero Coupon Bond, 11/19/27 6,500,000 794,632
Province of British Columbia, 5.700%, 6/18/29 325,000 197,839
Province of Manitoba, 6.500%, 9/22/17 1,825,000 1,232,197
Province of Manitoba, 7.750%, 12/22/25 3,100,000 2,397,729
Province of Newfoundland, 6.150%, 4/17/28 500,000 313,479
Province of Ontario, Zero Coupon Bond, 6/02/27 10,000,000 1,304,747
Province of Saskatchewan, Zero Coupon Bond, 4/10/14 2,500,000 700,389
Province of Saskatchewan, 5.750%, 3/05/29 5,225,000 3,201,415
Province of Saskatchewan (Certificate of Deposit),
Zero Coupon Bond, 2/04/22 1,281,000 212,257
Province of Saskatchewan (Certificate of Deposit),
Zero Coupon Bond, 5/30/25 1,250,000 173,564
------------
25,883,068
------------
COMPUTER HARDWARE--3.5%
Dell Computer Corp., 7.100%, 4/15/28 USD 350,000 312,788
Seagate Technology, Inc., 7.370%, 3/01/07 2,000,000 1,811,940
Seagate Technology, Inc., 7.450%, 3/01/37 3,250,000 3,135,220
Seagate Technology, Inc., 7.875%, 3/01/17 200,000 193,128
------------
5,453,076
------------
ELECTRONIC COMPONENTS--0.0%
Zenith Electronics Corp., 8.190%, 11/01/09 34,000 9,860
------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--0.2%
Pioneer Standard Electronics, Inc., 8.500%, 8/01/06 250,000 238,880
------------
ENTERTAINMENT--2.6%
Time Warner Entertainment Co., 6.875%, 6/15/18 410,000 370,874
Time Warner Entertainment Co., 6.950%, 1/15/28 2,250,000 1,993,297
Time Warner, Inc., 6.625%, 5/15/29 1,850,000 1,568,486
------------
3,932,657
------------
FINANCIAL SERVICES--1.7%
Capital One Bank, 7.160%, 4/10/06 105,000 101,797
Fleet Financial Group, 6.700%, 7/15/28 786,000 682,948
Merey Sweeny LP, 8.850%, 12/18/19 144A 500,000 500,290
Security Capital Group, Inc., 7.700%, 6/15/28 1,000,000 823,400
US West Capital Funding, Inc., 6.500%, 11/15/18 500,000 439,870
------------
2,548,305
------------
FOOD & BEVERAGE--0.6%
ConAgra, Inc., 7.000%, 10/01/28 1,000,000 861,560
------------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 54
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
FOREIGN GOVERNMENT/AGENCY--4.3%
New South Wales Treasury,
Zero Coupon Bond, 11/23/20 AUD 6,000,000 $ 866,386
Republic of Brazil C Bond, 8.000%, 4/15/14 PIK USD 3,078,523 2,355,070
Republic of South Africa, 8.500%, 6/23/17 1,125,000 1,026,563
Republic of South Africa, 12.500%, 12/21/06 ZAR 8,600,000 1,155,606
Republic of South Africa, 13.000%, 8/31/10 6,800,000 911,739
Republic of South Africa, 13.500%, 9/15/15 2,500,000 345,634
------------
6,660,998
------------
FOREIGN ISSUER--12.9%
Bangkok Bank Public Co. Ltd., 9.025%, 3/15/29 144A USD 2,250,000 1,766,250
Cerro Negro Finance Ltd., 7.900%, 12/01/20 144A 500,000 409,405
Embotelladora Andina SA, 7.625%, 10/01/27 1,000,000 837,908
Enersis SA, 7.400%, 12/01/16 2,550,000 2,243,972
Espirito Santo Centrais Eletricas SA, 10.000%, 7/15/07 1,000,000 820,000
Industrial Finance Corp. of Thailand,
6.875%, 4/01/03 144A 575,000 558,566
Korea Electric Power Corp., 7.400%, 4/01/16 448,535 412,885
PDVSA Finance Ltd., 7.400%, 8/15/16 2,000,000 1,612,500
PDVSA Finance Ltd., 7.500%, 11/15/28 2,000,000 1,500,000
Perez Companc SA, 8.125%, 7/15/07 144A 350,000 301,000
Petrozuata Finance, Inc., 8.220%, 4/01/17 144A 700,000 577,500
Pindo Deli Finance Mauritius Ltd., 10.875%, 10/01/27 100,000 38,000
Samsung Electronics Co. Ltd., 7.700%, 10/01/27 144A 1,250,000 954,250
Telekom Malaysia Berhad, 7.875%, 8/01/25 144A 2,750,000 2,489,402
Tenaga Nasional Berhad, 7.500%, 11/01/25 144A 5,390,000 4,557,331
Thai Farmers Bank Plc, 8.250%, 8/21/16 144A 250,000 195,000
Total Access Communication Public Co. Ltd.,
8.375%, 11/04/06 144A 150,000 132,000
Transgas De Occidente SA, 9.790%, 11/01/10 144A 485,267 378,509
------------
19,784,478
------------
FOREST & PAPER PRODUCTS--2.0%
Georgia-Pacific Corp. (Timber Group), 7.250%, 6/01/28 1,500,000 1,290,570
Georgia-Pacific Group, 7.750%, 11/15/29 1,525,000 1,390,190
Westvaco Corp., 7.000%, 8/15/23 500,000 413,320
------------
3,094,080
------------
GOVERNMENT AGENCIES--2.1%
Federal Home Loan Mortgage Corp., 6.000%, 4/15/28 1,000,000 886,250
Federal National Mortgage Association,
Zero Coupon Bond, 10/29/07 NZD 6,850,000 1,649,493
Federal National Mortgage Association, 6.375%, 8/15/07 AUD 1,250,000 661,720
------------
3,197,463
------------
HEALTHCARE--PRODUCTS--0.5%
Bausch & Lomb, Inc., 7.125%, 8/01/28 USD 1,250,000 763,863
------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
HOME BUILDERS--1.8%
Lennar Corp., 7.625%, 3/01/09 USD 500,000 $ 424,365
Pulte Corp., 7.000%, 12/15/03 188,000 176,761
Pulte Corp., 7.300%, 10/24/05 200,000 183,580
Pulte Corp., 7.625%, 10/15/17 2,500,000 1,998,750
------------
2,783,456
------------
INSURANCE--0.0%
Progressive Corp., 6.625%, 3/01/29 35,000 27,795
------------
OIL & GAS--2.3%
Anadarko Petroleum Corp., 6.625%, 1/15/28 1,000,000 833,040
Global Marine, Inc., 7.000%, 6/01/28 250,000 223,115
Global Marine, Inc., 7.125%, 9/01/07 50,000 48,865
Mitchell Energy & Development Corp.,
6.750%, 2/15/04 300,000 292,035
Pennzoil-Quaker State Co., 7.375%, 4/01/29 1,000,000 748,860
Pioneer Natural Resources Co., 7.200%, 1/15/28 1,000,000 795,000
Union Oil Co., 7.500%, 2/15/29 45,000 42,885
Union Pacific Resources Group, Inc., 7.150%, 5/15/28 350,000 321,884
Union Pacific Resources Group, Inc., 7.500%, 10/15/26 250,000 240,125
------------
3,545,809
------------
OIL & GAS DRILLING EQUIPMENT--1.6%
R & B Falcon Corp., Series B, 7.375%, 4/15/18 2,750,000 2,450,937
RAIL--TRANSPORT--0.1%
Missouri Pacific Railroad Co., 5.000%, 1/01/45 275,000 142,656
------------
REAL ESTATE INVESTMENT TRUSTS--7.1%
AMB Property Corp., 7.500%, 6/30/18 1,000,000 888,290
American Health Properties, Inc., 7.500%, 1/15/07 110,000 99,168
Camden Property Trust, 7.000%, 11/15/06 500,000 473,350
Colonial Realty LP, 8.050%, 7/15/06 165,000 161,845
EOP Operating LP, 7.500%, 4/19/29 2,000,000 1,763,960
Evans Withycombe Residential, Inc., 7.625%, 4/15/07 45,000 44,017
First Industrial, 7.500%, 12/01/17 2,750,000 2,379,740
First Industrial, 7.600%, 7/15/28 1,250,000 1,048,388
Highwoods Realty LP, 7.500%, 4/15/18 1,000,000 829,540
Susa Partnership LP, 7.450%, 7/01/18 80,000 68,725
Susa Partnership LP, 7.500%, 12/01/27 1,750,000 1,453,077
TriNet Corporate Realty Trust, Inc., 7.700%, 7/15/17 2,425,000 1,681,493
------------
10,891,593
------------
RETAIL--GENERAL--1.1%
J.C. Penney Co., Inc., 7.650%, 8/15/16 500,000 344,800
J.C. Penney Co., Inc., 7.950%, 4/01/17 250,000 176,438
K Mart Corp., 7.950%, 2/01/23 1,250,000 836,425
Woolworth Corp., 8.500%, 1/15/22 500,000 325,000
------------
1,682,663
------------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 56
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
SECURITIES--1.0%
Lehman Brothers Holdings, Inc., 6.625%, 2/15/08 USD 1,500,000 $ 1,414,800
Lehman Brothers Holdings, Inc., 7.375%, 1/15/07 60,000 59,624
------------
1,474,424
------------
SUPRANATIONAL--2.2%
International Bank for Reconstruction & Development,
Zero Coupon Bond, 8/20/07 NZD 9,650,000 2,392,645
International Bank for Reconstruction & Development,
5.500%, 11/03/08 1,000,000 363,350
International Bank for Reconstruction & Development,
8.000%, 5/23/07 1,505,000 629,389
------------
3,385,384
------------
TAXABLE MUNICIPAL--0.5%
Orange County, California Pension Obligation,
Zero Coupon Bond, 9/01/16 USD 2,500,000 749,575
------------
TEXTILE & APPAREL--0.4%
Burlington Industries, Inc., 7.250%, 8/01/27 315,000 138,600
Kellwood Co., 7.625%, 10/15/17 1,000,000 551,670
------------
690,270
------------
TOBACCO--1.8%
Philip Morris Cos., Inc., 7.750%, 1/15/27 3,250,000 2,843,685
------------
TRANSPORTATION--0.3%
American President Cos. Ltd., 7.125%, 11/15/03 500,000 390,000
American President Cos. Ltd., 8.000%, 1/15/24 100,000 50,000
------------
440,000
------------
UTILITIES--1.9%
Boston Edison Co., 7.800%, 3/15/23 250,000 233,545
Commonwealth Edison Co., 4.750%, 12/01/11 116,000 96,280
KN Capital Trust, 7.630%, 4/15/28 2,000,000 1,737,020
KN Energy, Inc., 7.250%, 3/01/28 1,000,000 905,350
------------
2,972,195
------------
TOTAL NON-CONVERTIBLE BONDS
(Identified Cost $130,568,450) 122,254,312
------------
CONVERTIBLE BONDS--15.5%
AUTO & RELATED--0.3%
Magna International, Inc. Class A, 4.875%, 2/15/05 500,000 444,375
------------
COMPUTERS--0.1%
Maxtor Corp., 5.750%, 3/01/12 150,000 105,000
------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
DIVERSIFIED OPERATIONS--2.3%
Ogden Corp., 5.750%, 10/20/02 USD 600,000 $ 524,359
Thermo Electron Corp., 4.250%, 1/01/03 144A 3,250,000 3,087,500
------------
3,611,859
------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--0.0%
Richardson Electronics Ltd., 7.250%, 12/15/06 50,000 41,000
------------
ENVIRONMENTAL SERVICES--1.2%
Thermo TerraTech, Inc., 4.625%, 5/01/03 250,000 235,625
Thermo TerraTech, Inc., 4.625%, 5/01/03 144A 1,650,000 1,555,125
------------
1,790,750
------------
FINANCIAL SERVICES--0.9%
Bell Atlantic Financial Services, 5.750%, 4/01/03 1,390,000 1,347,466
------------
FOREIGN ISSUER--1.0%
Bangkok Bank Public Co. Ltd., 4.589%, 3/03/04 500,000 251,250
Burns, Philp, 5.500%, 4/30/04 590,000 389,400
Loxley Public Co. Ltd., 2.500%, 4/04/01 ^ 1,150,000 414,000
Samsung Display Devices, 0.250%, 3/12/06 260,000 312,000
Siam Commercial Bank Public Co. Ltd.,
3.250%, 1/24/04 100,000 48,625
Ssangyong Oil Refining Co., Inc., 3.000%, 12/31/04 100,000 72,500
------------
1,487,775
------------
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
------------
HEALTHCARE--DRUGS--0.0%
NABI, Inc., 6.500%, 2/01/03 100,000 75,000
------------
HEALTHCARE--SERVICES--0.4%
Healthsouth Corp., 3.250%, 4/01/03 750,000 630,000
------------
INSURANCE--3.6%
Loews Corp., 3.125%, 9/15/07 6,225,000 5,585,194
------------
MACHINERY--0.0%
Intevac, Inc., 6.500%, 3/01/04 100,000 49,625
------------
MANUFACTURING--0.1%
FMC Corp., 6.750%, 1/16/05 170,000 139,400
------------
MULTI-INDUSTRY--0.9%
Thermo Instrument Systems, Inc.,
4.500%, 10/15/03 144A 1,450,000 1,359,375
------------
OFFICE EQUIPMENT--1.9%
Xerox Corp., 0.570%, 4/21/18 5,750,000 2,957,627
------------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 58
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
BONDS AND NOTES-CONTINUED
OIL & GAS--1.8%
Baker Hughes, Inc., Zero Coupon Bond, 5/05/08 USD 2,424,000 $ 1,994,467
Diamond Offshore Drilling, Inc., 3.750%, 2/15/07 350,000 394,713
Noram Energy Corp., 6.000%, 3/15/12 335,000 311,550
------------
2,700,730
------------
PUBLISHING--0.4%
Scholastic Corp., 5.000%, 8/15/05 144A 540,000 584,550
------------
REAL ESTATE INVESTMENT TRUSTS--0.5%
Federal Realty Investors Trust, 5.250%, 10/28/03 835,000 723,319
------------
RETAIL--SPECIALTY--0.0%
CML Group, Inc., 5.500%, 1/15/03 ^ 50,000 32
------------
TOTAL CONVERTIBLE BONDS
(Identified Cost $24,449,917) 23,815,488
------------
TOTAL BONDS AND NOTES
(Identified Cost $155,018,367) 146,069,800
------------
<CAPTION>
SHARES
----------------------------------------------------------------------------------------------------------
PREFERRED STOCKS-2.6% OF NET ASSETS
NON-CONVERTIBLE PREFERRED STOCKS--1.3%
CHEMICALS--MAJOR--0.1%
E.I. du Pont DeNemours & Co., $3.50 2,200 117,700
------------
REAL ESTATE INVESTMENT TRUSTS--0.1%
CarrAmerica Realty Corp., Series C, 8.550% 700 15,050
Equity Residential Properties Trust, Series L, 7.625% 2,000 43,750
First Industrial Realty Trust, Inc., Series E, 7.900% 1,500 31,500
ProLogis Trust, Series E, 8.750% 5,000 117,812
------------
208,112
------------
UTILITIES--1.1%
Central Illinois Light Co., 4.500% 100 6,200
Connecticut Light & Power Co., $2.20 263 7,791
Consolidated Edison, Inc., Series C, 4.650% 300 20,625
Dayton Power & Light Co., 3.750% 701 39,957
Del Marva Power & Light Co., 4.000% 350 18,900
Duquesne Light Co., 4.000% 300 7,950
Illinois Power Co., 4.080% 600 17,663
Illinois Power Co., 4.200% 400 12,050
Jersey Central Power & Light Co., 4.000% 3,710 220,745
MDU Resources Group, Inc., 5.100% 900 80,100
Northern Indiana Public Service Co., 4.250% 2,210 118,235
Pacific Gas & Electric Corp., 5.500% 100 1,725
Pacific Gas & Electric Corp., Series D, 5.000% 25,100 357,675
PSI Energy, Inc., 4.320% 200 3,088
Public Service Electric & Gas Co., 4.080% 400 22,500
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS-CONTINUED
UTILITIES--CONTINUED
San Diego Gas & Electric Co., 4.500% 100 $ 1,350
Southern California Edison Co., 4.240% 5,700 83,362
Southern California Edison Co., 4.320% 23,380 315,630
Southern California Edison Co., 4.780% 8,000 107,000
Union Electric Co., $4.50 4,210 244,180
Xcel Energy, Inc., $4.08 50 2,975
Xcel Energy, Inc., $4.10 100 6,050
------------
1,695,751
------------
TOTAL NON-CONVERTIBLE PREFERRED STOCKS
(Identified Cost $2,078,839) 2,021,563
------------
CONVERTIBLE PREFERRED STOCKS--1.3%
AEROSPACE/DEFENSE--0.2%
Coltec Capital Trust, 5.250% 7,500 360,000
------------
BUILDING MATERIALS--0.0%
Owens Corning, 6.500% ^ 2,500 16,875
------------
OIL & GAS--0.8%
EVI, Inc., 5.000% 25,250 1,208,844
------------
REAL ESTATE INVESTMENT TRUSTS--0.3%
Camden Property Trust, $2.25 3,000 74,812
Equity Residential Properties Trust, 7.250% 14,350 324,669
------------
399,481
------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(Identified Cost $1,567,262) 1,985,200
------------
TOTAL PREFERRED STOCKS
(Identified Cost $3,646,101) 4,006,763
------------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 60
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-0.8% OF NET ASSETS
Repurchase Agreement with State Street Bank and
Trust Co., dated 9/29/00 at 5.250% to be repurchased
at $1,113,487 on 10/02/00 collateralized by $1,005,000
U.S. Treasury Bond, 7.125% due 2/15/23 with a
value of $1,138,910 USD 1,113,000 $ 1,113,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $1,113,000) 1,113,000
------------
TOTAL INVESTMENTS--98.6%
(IDENTIFIED COST $159,777,468) @ 151,189,563
Cash and Other Assets, Less Liabilities--1.4% 2,222,551
------------
NET ASSETS--100.% $153,412,114
============
</TABLE>
+ See Note 1.
# Step Bond: Coupon is zero or below market rate for an initial period and
then increases at a specified date and rate.
144A Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
PIK All or a portion of income may be received as additional securities.
^ Security in default
@ At September 30, 2000, the net unrealized depreciation on investments
based on cost of $159,784,607 for federal income tax purposes was as
follows: Aggregate gross unrealized appreciation for all securities in
which there is an excess of value over tax cost and aggregate gross
unrealized depreciation for all securities in which there is an excess of
tax cost over value were $5,359,028 and $13,954,072 respectively,
resulting in net unrealized depreciation of $8,595,044.
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.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES PROVIDENT FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-82.3% OF NET ASSETS
AEROSPACE/DEFENSE--2.3%
General Dynamics Corp. 8,700 $ 546,469
-----------
AIRLINES--2.2%
Southwest Airlines Co. 21,300 516,525
-----------
CHEMICALS--MAJOR--1.8%
Praxair, Inc. 11,450 427,944
-----------
COMMERCIAL SERVICES--1.2%
Manpower, Inc. 8,900 284,244
-----------
COMPUTER HARDWARE--5.5%
Apple Computer, Inc. * 8,400 216,300
Compaq Computer Corp. 15,600 430,248
International Business Machines Corp. 5,800 652,500
-----------
1,299,048
-----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--3.5%
Analog Devices, Inc. * 5,300 437,581
GlobeSpan, Inc. * 3,300 402,600
-----------
840,181
-----------
FINANCIAL SERVICES--2.9%
Citigroup, Inc. 12,533 677,565
-----------
FOOD & BEVERAGE--2.5%
PepsiCo, Inc. 12,900 593,400
-----------
HEALTHCARE--BIOTECHNOLOGY--1.5%
Amgen, Inc. * 5,200 363,106
-----------
HEALTHCARE--DRUGS--4.8%
Pfizer, Inc. 13,100 588,681
Pharmacia Corp. 9,200 553,725
-----------
1,142,406
-----------
INSURANCE--7.6%
AFLAC, Inc. 12,100 775,157
American General Corp. 7,000 546,000
Hartford Financial Services Group, Inc. 6,700 488,681
-----------
1,809,838
-----------
MANUFACTURING--2.4%
Minnesota Mining and Manufacturing Co. 6,250 569,531
-----------
METALS & MINING--3.4%
Alcoa, Inc. 15,600 394,875
Newmont Mining Corp. 24,800 421,600
-----------
816,475
-----------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 62
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES PROVIDENT FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
NATURAL GAS--2.5%
El Paso Energy Corp. 9,450 $ 582,356
-----------
OIL & GAS DRILLING EQUIPMENT--2.6%
Nabors Industries, Inc. * 12,000 628,800
-----------
OIL & GAS EXPLORATION--13.6%
Anadarko Petroleum Corp. 9,350 621,401
Devon Energy Corp. 10,000 601,500
EOG Resources, Inc. 17,400 676,425
Kerr-McGee Corp. 9,950 659,187
Unocal Corp. 18,500 655,594
-----------
3,214,107
-----------
OIL & GAS--MAJOR INTEGRATED--2.3%
Phillips Petroleum Co. 8,700 545,925
-----------
PUBLISHING--2.2%
McGraw-Hill Cos., Inc. 8,100 514,856
-----------
RETAIL--FOOD & DRUG--2.8%
CVS Corp. 14,400 666,900
-----------
RETAIL--GENERAL--5.4%
Best Buy Co., Inc. * 7,200 458,100
BJ's Wholesale Club, Inc. * 10,300 351,488
Target Corp. 18,200 466,375
-----------
1,275,963
-----------
TELECOMMUNICATIONS--4.4%
BellSouth Corp. 14,550 585,638
Dominion Resources, Inc. 7,700 447,081
-----------
1,032,719
-----------
UTILITIES--ELECTRIC--4.9%
Duke Energy Corp. 5,900 505,925
Peco Energy Co. 11,000 666,188
-----------
1,172,113
-----------
TOTAL COMMON STOCKS
(Identified Cost $18,068,247) 19,520,471
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES PROVIDENT FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-20.2% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co.,
dated 9/29/00 at 5.250% to be repurchased at $4,783,092 on
10/02/00 collateralized by $3,535,000 U.S. Treasury Bond,
12.000% due 8/15/13 with a value of $4,878,300 $4,781,000 $ 4,781,000
-----------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $4,781,000) 4,781,000
-----------
TOTAL INVESTMENTS--102.5%
(IDENTIFIED COST $22,849,247) @ 24,301,471
Liabilities, Less Cash and Other Assets--(2.5%) (583,303)
-----------
NET ASSETS--100% $23,718,168
===========
</TABLE>
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments
based on cost of $22,929,617 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 $2,402,657 and $1,030,803, respectively,
resulting in net unrealized appreciation of $1,371,854.
See accompanying notes to financial statements.
LOOMIS SAYLES INVESTMENT TRUST 64
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY GROWTH FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-97.5% OF NET ASSETS
AEROSPACE/DEFENSE--1.0%
Teledyne Technologies, Inc. * 47,350 $ 1,379,069
------------
BANKS/SAVINGS & LOANS--1.5%
Southwest Bancorporation of Texas, Inc. * 62,100 2,029,894
------------
BUILDING & CONSTRUCTION--1.5%
Toll Brothers, Inc. * 59,600 2,048,750
------------
BUSINESS SERVICES--3.8%
About.com, Inc. * 17,700 573,038
Bell Microproducts, Inc. * 40,400 1,262,500
Hall, Kinion & Associates, Inc. * 39,900 1,134,656
internet.com Corp. * 22,200 686,813
On Assignment, Inc. * 46,350 1,454,231
------------
5,111,238
------------
COMMUNICATIONS EQUIPMENT--8.8%
Aeroflex, Inc. * 72,875 3,543,547
Anaren Microwave, Inc. * 15,050 2,041,156
Computer Network Technology Corp. * 50,900 1,749,687
MCK Communications, Inc. * 48,750 1,102,969
Tollgrade Communications, Inc. * 15,250 2,116,891
Tut Systems, Inc. * 14,300 1,234,269
------------
11,788,519
------------
COMPUTER HARDWARE--1.0%
Adept Technology, Inc. * 24,200 1,272,013
------------
COMPUTER SERVICES--1.8%
Avocent Corp. * 42,850 2,362,106
------------
COMPUTER SOFTWARE--11.4%
Advent Software, Inc. * 65,050 4,545,369
Aware, Inc. * 25,400 977,900
Macrovision Corp. * 41,350 3,349,350
Manugistics Group, Inc. * 37,450 3,674,781
Netegrity, Inc. * 33,775 2,364,250
NetScout Systems, Inc. * 13,950 331,312
------------
15,242,962
------------
EDUCATION--1.6%
Education Management Corp. * 28,100 756,944
Learning Tree International, Inc. * 28,600 1,362,075
------------
2,119,019
------------
ELECTRICAL EQUIPMENT--1.0%
Peco II, Inc. * 29,600 1,385,650
------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
ELECTRONIC COMPONENTS--8.6%
GSI Lumonics, Inc. * 80,900 $ 1,334,850
LightPath Technologies, Inc. Class A * 58,150 2,762,125
Merix Corp. * 46,600 3,020,262
Plexus Corp. * 46,300 3,264,150
Valence Technology, Inc. * 65,050 1,122,113
------------
11,503,500
------------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--9.9%
Actel Corp. * 27,550 990,078
Exar Corp. * 30,550 3,696,550
Integrated Silicon Solution, Inc. * 3,700 52,494
Kopin Corp. * 4,900 88,200
OmniVision Technologies, Inc. * 28,600 1,034,962
Pericom Semiconductor Corp. * 68,000 2,554,250
Supertex, Inc. * 29,050 1,463,394
TranSwitch Corp. * 52,200 3,327,750
------------
13,207,678
------------
ELECTRONIC MEASURING INSTRUMENTS--1.4%
Keithley Instruments, Inc. 27,550 1,928,500
------------
FINANCIAL SERVICES--3.5%
Affiliated Managers Group, Inc. * 43,850 2,496,709
Dain Rauscher Corp. 15,050 1,399,650
Digital Insight Corp. * 22,650 812,569
------------
4,708,928
------------
FOOD--PACKAGED & MISCELLANEOUS--1.5%
Hain Celestial Group, Inc. * 55,700 1,956,463
------------
HEALTHCARE--BIOTECHNOLOGY--8.6%
Alkermes, Inc. * 22,150 855,544
Aurora Biosciences Corp. * 33,000 2,244,000
Cell Therapeutics, Inc. * 32,000 2,134,000
Exelixis, Inc. * 37,000 1,160,875
ILEX Oncology, Inc. * 30,600 921,825
ImmunoGen, Inc. * 19,600 670,075
Myriad Genetics, Inc. * 22,700 1,960,712
Sequenom, Inc. * 17,800 749,825
Visible Genetics, Inc. * 19,900 803,463
------------
11,500,319
------------
HEALTHCARE--DRUGS--2.8%
Dura Pharmaceuticals, Inc. * 67,250 2,378,969
Noven Pharmaceuticals, Inc. * 33,050 1,412,887
------------
3,791,856
------------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 66
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY GROWTH FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
HEALTHCARE--MEDICAL TECHNOLOGY--4.6%
Biosite Diagnostics, Inc. * 22,650 $ 903,169
Cyberonics, Inc. * 42,600 913,237
Cytyc Corp. * 49,300 2,126,062
Illumina, Inc. * 26,850 1,218,319
Novoste Corp. * 23,150 983,875
------------
6,144,662
------------
HEALTHCARE--SERVICES--7.4%
Accredo Health, Inc. * 48,300 2,360,662
Advance Paradigm, Inc. * 28,300 1,193,906
PolyMedica Corp. * 47,800 2,049,425
Professional Detailing, Inc. * 14,800 843,600
Province Health Care, Inc. * 84,950 3,392,691
------------
9,840,284
------------
OIL & GAS--1.0%
Cal Dive International, Inc. * 23,650 1,352,484
------------
OIL & GAS DRILLING EQUIPMENT--5.0%
Marine Drilling Cos., Inc. * 113,300 3,236,131
Patterson Energy, Inc. * 100,500 3,454,688
------------
6,690,819
------------
OIL & GAS EXPLORATION--1.1%
Spinnaker Exploration Co. * 41,350 1,442,081
------------
RETAIL--SPECIALTY--5.6%
Cost Plus, Inc. * 86,700 2,611,838
PC Connection, Inc. * 47,500 2,707,500
Tweeter Home Entertainment Group, Inc. * 59,150 2,147,884
------------
7,467,222
------------
TELECOMMUNICATIONS--3.1%
AirGate PCS, Inc. * 20,150 904,231
Neon Communications, Inc. * 28,100 979,987
SBA Communications Corp. * 54,150 2,270,916
------------
4,155,134
------------
TOTAL COMMON STOCKS
(Identified Cost $108,255,860) 130,429,150
------------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY GROWTH FUND FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENT-8.5% OF NET ASSETS
Repurchase Agreement with State Street Bank and Trust Co.,
dated 9/29/00 at 5.250% to be repurchased at $11,439,002 on
10/02/00 collateralized by $8,895,000 U.S. Treasury Bond,
8.875% due 2/15/19 with a value of $11,666,984 $11,434,000 $ 11,434,000
------------
TOTAL SHORT-TERM INVESTMENT
(Identified Cost $11,434,000) 11,434,000
------------
TOTAL INVESTMENTS--106.0%
(IDENTIFIED COST $119,689,860) @ 141,863,150
Liabilities, Less Cash and Other Assets--(6.0%) (8,078,829)
------------
NET ASSETS--100% $133,784,321
============
</TABLE>
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments
based on cost of $120,182,587 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 $27,098,442 and $5,417,879, respectively,
resulting in net unrealized appreciation of $21,680,563.
See accompanying notes to financial statements.
LOOMIS SAYLES INVESTMENT TRUST 68
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-95.5% OF NET ASSETS
AEROSPACE/DEFENSE--2.1%
Alliant Techsystems, Inc. * 1,700 $ 139,612
Newport News Shipbuilding, Inc. 4,900 212,537
Teledyne Technologies, Inc. * 3,300 96,113
-----------
448,262
-----------
AUTO & RELATED--1.0%
Oshkosh Truck Corp. 5,400 209,250
-----------
BANKS/SAVINGS & LOANS--5.4%
Astoria Financial Corp. 2,800 108,150
City National Corp. 3,500 135,187
Colonial BancGroup, Inc. 9,500 98,563
Commerce Bancorp, Inc. 2,595 150,997
Commercial Federal Corp. 7,800 149,175
First Midwest Bancorp, Inc. 5,850 155,756
Hudson United Bancorp 5,718 157,960
Wilmington Trust Corp. 3,300 176,962
-----------
1,132,750
-----------
BROADCASTING--1.5%
A. H. Belo Corp. Series A 7,600 140,125
Harcourt General, Inc. 1,900 112,100
Regent Communications, Inc. * 10,900 60,631
-----------
312,856
-----------
BUSINESS SERVICES--1.1%
Black Box Corp. * 3,100 144,537
Progress Software Corp. * 6,500 88,563
-----------
233,100
-----------
CHEMICALS--0.7%
Cabot Microelectronics Corp. * 400 19,200
Dionex Corp. * 4,400 121,550
-----------
140,750
-----------
CHEMICALS--MAJOR--0.6%
IMC Global, Inc. 8,500 123,250
-----------
CHEMICALS--SPECIALTY--4.3%
Cambrex Corp. 3,200 118,400
Cuno, Inc. * 5,500 122,375
Cytec Industries, Inc. * 3,600 120,375
Ferro Corp. 4,000 76,250
Great Lakes Chemical Corp. 4,100 120,181
Olin Corp. 4,800 77,700
OM Group, Inc. 900 39,263
Scotts Co. * 5,500 184,250
Spartech Corp. 3,400 52,912
-----------
911,706
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
COMMERCIAL SERVICES--4.4%
ACNielson Corp. * 7,400 $ 176,212
ADVO, Inc. * 5,300 174,900
Harte-Hanks, Inc. 6,400 174,400
NetRatings, Inc. * 3,400 63,750
R.H. Donnelley Corp. * 12,500 264,062
United Stationers, Inc. * 3,100 83,313
-----------
936,637
-----------
COMMUNICATIONS EQUIPMENT--1.4%
C-COR.net Corp. * 1,800 27,563
Harris Corp. 4,200 119,438
Tekelec * 4,500 147,937
-----------
294,938
-----------
COMPUTER HARDWARE--0.9%
National Instruments Corp. * 2,900 127,963
RadiSys Corp. * 1,300 65,731
-----------
193,694
-----------
COMPUTER SERVICES--1.2%
Affiliated Computer Services, Inc. Class A * 3,500 174,563
Complete Business Solutions, Inc. * 5,800 78,300
-----------
252,863
-----------
COMPUTER SOFTWARE--1.7%
Accrue Software, Inc. * 5,800 69,237
Aspen Technology, Inc. * 3,800 171,475
Great Plains Software, Inc. * 4,200 118,125
-----------
358,837
-----------
CONSUMER PRODUCTS--0.5%
Fossil, Inc. * 8,600 114,488
-----------
CONTAINERS--1.0%
CoorsTek, Inc. * 5,300 202,725
-----------
ELECTRICAL EQUIPMENT--1.1%
Sensormatic Electronics Corp. * 6,400 96,000
Varian Semiconductor Equipment Associates, Inc. * 3,600 134,775
-----------
230,775
-----------
ELECTRONIC COMPONENTS--3.8%
CommScope, Inc. * 5,100 124,950
CTS Corp. 3,800 192,375
DSP Group, Inc. * 2,600 97,175
Eletronics For Imaging, Inc. * 5,000 126,250
Kent Electronics Corp. * 6,400 152,800
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 70
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
ELECTRONIC COMPONENTS--CONTINUED
Vishay Intertechnology, Inc. * 3,400 $ 104,550
-----------
798,100
-----------
ELECTRONIC COMPONENTS--SEMICONDUCTORS--3.6%
Actel Corp. * 2,800 100,625
C-Cube Microsystems, Inc. * 3,800 77,900
Dallas Semiconductor Corp. 3,500 115,062
DuPont Photomasks, Inc. * 1,700 99,875
Integrated Device Technology, Inc. * 1,600 144,800
International Rectifier Corp. * 2,100 106,181
REMEC, Inc. * 3,800 111,863
-----------
756,306
-----------
ELECTRONIC MEASURING INSTRUMENTS--1.4%
Cerprobe Corp. * 8,200 120,950
Tektronix, Inc. 2,200 168,988
-----------
289,938
-----------
ENTERTAINMENT--0.2%
Steinway Musical Instruments, Inc. * 1,900 33,131
-----------
ENVIRONMENTAL SERVICES--1.1%
American States Water Co. 4,000 121,000
Tetra Tech, Inc. * 4,000 114,250
-----------
235,250
-----------
FINANCIAL SERVICES--4.5%
Affiliated Managers Group, Inc. * 2,100 119,569
Allied Capital Corp. 4,100 85,075
American Capital Strategies Ltd. 5,200 123,175
AmeriCredit Corp. * 7,900 227,618
Federated Investors, Inc. Class B 4,500 111,375
Heller Financial, Inc. 6,400 182,800
Investment Technology Group, Inc. * 2,800 111,825
-----------
961,437
-----------
FOOD--PACKAGED & MISCELLANEOUS--2.5%
Corn Products International, Inc. 6,600 150,150
International Multifoods Corp. 3,300 57,338
Interstate Bakeries Corp. 6,900 100,912
Michael Foods, Inc. 9,600 224,400
-----------
532,800
-----------
FOREST & PAPER PRODUCTS--0.1%
Chesapeake Corp. 1,200 23,100
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
FREIGHT TRANSPORTATION--1.7%
GATX Corp. 6,400 $ 268,000
USFreightways Corp. 4,200 95,287
-----------
363,287
-----------
HEALTHCARE--BIOTECHNOLOGY--1.9%
Invitrogen Corp. * 1,354 96,318
Medicis Pharmaceutical Corp. Class A * 2,800 172,200
Myriad Genetics, Inc. * 1,600 138,200
-----------
406,718
-----------
HEALTHCARE--MEDICAL TECHNOLOGY--5.9%
Acuson Corp. * 8,300 188,825
Beckman Coulter, Inc. 2,400 185,100
IDEXX Laboratories, Inc. * 6,800 181,900
Meridian Diognostic, Inc. 6,700 52,763
Respironics, Inc. * 10,100 168,544
Steris Corp. * 16,000 192,000
Varian Medical Systems, Inc. 3,000 135,562
Wilson Greatbatch Technologies, Inc. * 6,700 153,262
-----------
1,257,956
-----------
HEALTHCARE--SERVICES--3.6%
AmeriSource Health Corp. Class A * 3,700 173,900
Health Management Associates, Inc. Class A * 8,900 185,231
Hooper Holmes, Inc. 11,500 109,365
Per-Se Technologies, Inc. * 10,566 134,056
Renal Care Group, Inc. * 8,400 156,450
-----------
759,002
-----------
HOME BUILDERS--0.8%
D.R. Horton, Inc. 9,919 170,483
-----------
HOME PRODUCTS--0.7%
Alberto-Culver Co. Class A 5,600 140,350
-----------
INSURANCE--5.6%
Annuity and Life Re (Holdings) Ltd. 4,400 106,150
Arthur J. Gallagher & Co. 3,900 230,587
HSB Group, Inc. 4,200 168,525
Old Republic International Corp. 7,800 187,688
Protective Life Corp. 6,700 200,162
Radian Group, Inc. 1,800 121,500
StanCorp Financial Group, Inc. 2,800 119,700
Trigon Healthcare, Inc. * 1,000 52,563
-----------
1,186,875
-----------
LODGING & HOTEL--0.6%
MeriStar Hospitality Corp. 6,800 137,700
-----------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 72
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
MACHINERY--1.4%
Astec Industries, Inc. * 4,000 $ 43,750
Gardner Denver, Inc. * 6,100 99,125
Manitowoc Co., Inc. 5,100 98,175
Milacron, Inc. 4,000 53,250
-----------
294,300
-----------
MANUFACTURING--3.1%
Crane Co. 5,200 118,950
Harman International Industries, Inc. 4,800 187,680
Monaco Coach Corp. * 9,300 153,450
National Service Industries, Inc. 2,500 48,906
SPX Corp. * 1,000 141,938
-----------
650,924
-----------
METALS & MINING--0.6%
Harsco Corp. 3,400 75,013
Worthington Industries, Inc. 6,600 61,875
-----------
136,888
-----------
OFFICE EQUIPMENT--0.5%
School Specialty, Inc. * 5,400 115,088
-----------
OIL & GAS DRILLING EQUIPMENT--2.2%
Patterson Energy, Inc. * 4,600 158,125
Tidewater, Inc. 3,600 163,800
Veritas DGC, Inc. * 5,300 153,369
-----------
475,294
-----------
OIL & GAS EXPLORATION--0.6%
Spinnaker Exploration Co. * 3,700 129,038
-----------
OIL & GAS REFINING--0.8%
Ultramar Diamond Shamrock Corp. 6,500 164,938
-----------
PUBLISHING--0.9%
Houghton Mifflin Co. 2,300 90,275
John Wiley & Son, Inc. Class A 4,800 110,100
-----------
200,375
-----------
REAL ESTATE INVESTMENT TRUSTS--4.7%
Avalonbay Communities, Inc. 2,700 128,756
CarrAmerica Realty Corp. 4,800 145,200
Liberty Property Trust 7,600 209,000
Pacific Gulf Properties, Inc. 7,900 211,325
Prentiss Properties Trust 3,000 78,375
Reckson Associates Realty Corp. 8,400 214,200
-----------
986,856
-----------
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SHARES VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS-CONTINUED
RESTAURANTS--1.5%
Morrison Management Specialists, Inc. 4,700 $ 138,885
Wendy's International, Inc. 8,800 176,550
-----------
315,435
-----------
RETAIL--FOOD & DRUG--1.0%
Ruddick Corp. 5,700 79,088
Sonic Corp. * 3,900 122,850
-----------
201,938
-----------
RETAIL--SPECIALTY--4.1%
Casey's General Stores, Inc. 10,400 135,200
Charming Shoppes, Inc. * 24,400 127,337
Genesco, Inc. * 4,500 76,219
Meade Instruments Corp. * 4,300 86,806
Men's Wearhouse, Inc. * 3,800 107,588
Movado Group, Inc. 8,800 152,900
Pier 1 Imports, Inc. 6,500 88,156
The Wet Seal, Inc. * 6,300 98,831
-----------
873,037
-----------
STEEL--0.4%
Allegheny Technologies, Inc. 4,800 87,000
-----------
TELECOMMUNICATIONS--0.4%
ITC DeltaCom, Inc. * 6,700 77,050
-----------
TEXTILE & APPAREL--1.4%
Liz Claiborne, Inc. 5,300 204,050
Russell Corp. 5,600 88,900
-----------
292,950
-----------
UTILITIES--5.0%
AGL Resources, Inc. 5,500 110,344
Alliant Energy Corp. 5,600 164,500
MDU Resources Group, Inc. 7,000 208,250
New Jersey Resources Corp. 2,300 93,438
NSTAR 3,900 156,975
Vectren Corp. 10,900 221,406
Washington Gas Light Co. 3,900 104,812
-----------
1,059,725
-----------
TOTAL COMMON STOCKS
(Identified Cost $17,701,580) 20,210,150
-----------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 74
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
LOOMIS SAYLES SMALL COMPANY VALUE FUND (CONTINUED)
PORTFOLIO OF INVESTMENTS-AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE +
--------------------------------------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS-5.4% OF NET ASSETS
COMMERCIAL PAPER--5.4%
Associates Corp. of North America, 6.640%, 10/02/00 $851,940 $ 851,940
Chevron USA, Inc., 6.550%, 10/02/00 300,000 300,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $1,151,940) 1,151,940
-----------
TOTAL INVESTMENTS--100.9%
(IDENTIFIED COST $18,853,520) @ 21,362,090
Liabilities, Less Cash and Other Assets--(0.9%) (200,262)
-----------
NET ASSETS--100% $21,161,828
===========
</TABLE>
+ See Note 1.
* Non-income producing security
@ At September 30, 2000, the net unrealized appreciation on investments
based on cost of $18,762,373 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 $3,691,058 and $1,091,341, respectively,
resulting in net unrealized appreciation of $2,599,717.
See accompanying notes to financial statements.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
LOOMIS SAYLES INVESTMENT TRUST 76
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA TAX- CORE FIXED
FREE INCOME FIXED INCOME INCOME
FUND FUND FUND
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments at value $ 14,526,130 $ 15,560,456 $ 407,159,772
Repurchase agreement at value 563,000 323,000 7,412,000
Cash 671 844 698,768
Foreign currency at value* 0 0 135,938
Receivable for:
Fund shares sold 0 0 10,700,000
Securities sold 0 0 142,109
Dividend and interest 227,298 254,113 7,164,665
Due from the adviser (Note 3) 9,673 5,316 0
Other assets (Note 1H) 0 1,315 0
------------- ------------- -------------
15,326,772 16,145,044 433,413,252
------------- ------------- -------------
LIABILITIES
Payable for:
Securities purchased 0 0 5,329,814
Fund shares redeemed 0 0 81,000
Accrued expenses:
Management fees (Note 3) 6,286 4,588 169,881
Trustee's fees (Note 3A) 856 856 856
Administrative fees 1,100 1,301 22,952
Other 24,187 31,189 78,961
------------- ------------- -------------
32,429 37,934 5,683,464
------------- ------------- -------------
NET ASSETS $ 15,294,343 $ 16,107,110 $ 427,729,788
============= ============= =============
Net Assets consist of:
Capital paid in $ 15,270,596 $ 16,397,546 $ 437,972,847
Undistributed net investment income 57,422 1,007,494 23,473,198
Accumulated net realized gain (loss) (61,523) (1,071,860) (3,224,230)
Unrealized appreciation (depreciation)
on investments and foreign currency - net** 27,848 (226,070) (30,492,027)
------------- ------------- -------------
NET ASSETS $ 15,294,343 $ 16,107,110 $ 427,729,788
============= ============= =============
Shares of beneficial interest outstanding,
no par value 1,502,001 1,532,255 35,803,108
============= ============= =============
Net asset value, and redemption price per share
(Net assets/shares of beneficial interest
outstanding) $ 10.18 $ 10.51 $ 11.95
Identified cost of investments $ 15,061,282 $ 16,109,526 $ 445,055,079
============= ============= =============
</TABLE>
* COST OF FOREIGN CURRENCY OF $137,307 AND $170,189 FOR THE FIXED INCOME FUND
AND INVESTMENT GRADE FIXED INCOME FUND, RESPECTIVELY.
** NET OF CAPITAL GAIN WITHHOLDING TAXES OF $318 FOR THE HIGH YIELD FIXED
INCOME FUND.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
HIGH YIELD INTERMEDIATE INVESTMENT GRADE
FIXED INCOME DURATION FIXED FIXED INCOME
FUND INCOME FUND FUND
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments at value $ 32,141,165 $ 20,225,243 $ 150,076,563
Repurchase agreement at value 786,000 0 1,113,000
Cash 2,916 69,824 269
Foreign currency at value* 0 0 167,434
Receivable for:
Fund shares sold 6,000,000 0 0
Securities sold 282,812 0 0
Dividend and interest 584,331 315,253 2,706,863
Due from the adviser (Note 3) 8,275 7,505 7,243
Other assets (Note 1H) 0 0 0
------------- ------------- -------------
39,805,499 20,617,825 154,071,372
------------- ------------- -------------
LIABILITIES
Payable for:
Securities purchased 128,574 0 542,389
Fund shares redeemed 0 0 0
Accrued expenses:
Management fees (Note 3) 16,982 6,730 50,546
Trustee's fees (Note 3A) 856 854 879
Administrative fees 1,090 647 9,486
Other 39,492 29,815 55,958
------------- ------------- -------------
186,994 38,046 659,258
------------- ------------- -------------
NET ASSETS $ 39,618,505 $ 20,579,779 $ 153,412,114
============= ============= =============
Net Assets consist of:
Capital paid in $ 46,011,444 $ 21,080,256 $ 161,844,435
Undistributed net investment income 2,675,751 30,067 97,922
Accumulated net realized gain (loss) (5,583,490) (96,455) 65,765
Unrealized appreciation (depreciation)
on investments and foreign currency - net** (3,485,200) (434,089) (8,596,008)
------------- ------------- -------------
NET ASSETS $ 39,618,505 $ 20,579,779 $ 153,412,114
============= ============= =============
Shares of beneficial interest outstanding,
no par value 4,753,283 2,154,158 13,946,555
============= ============= =============
Net asset value, and redemption price per share
(Net assets/shares of beneficial interest
outstanding) $ 8.33 $ 9.55 $ 11.00
Identified cost of investments $ 36,412,218 $ 20,659,332 $ 159,777,468
============= ============= =============
<CAPTION>
SMALL COMPANY SMALL COMPANY
PROVIDENT GROWTH VALUE
FUND FUND FUND
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments at value $ 19,520,471 $ 130,429,150 $ 21,362,090
Repurchase agreement at value 4,781,000 11,434,000 0
Cash 675 722 0
Foreign currency at value* 0 0 0
Receivable for:
Fund shares sold 0 0 0
Securities sold 464,005 1,567,126 65,524
Dividend and interest 9,472 4,057 24,021
Due from the adviser (Note 3) 7,403 13,180 18,100
Other assets (Note 1H) 0 0 0
------------- ------------- -------------
24,783,026 143,448,235 21,469,735
------------- ------------- -------------
LIABILITIES
Payable for:
Securities purchased 1,028,443 9,536,811 260,110
Fund shares redeemed 0 0 0
Accrued expenses:
Management fees (Note 3) 9,901 77,231 13,024
Trustee's fees (Note 3A) 862 1,049 855
Administrative fees 1,952 7,476 1,198
Other 23,700 41,347 32,720
------------- ------------- -------------
1,064,858 9,663,914 307,907
------------- ------------- -------------
NET ASSETS $ 23,718,168 $ 133,784,321 $ 21,161,828
============= ============= =============
Net Assets consist of:
Capital paid in $ 18,086,608 $ 110,780,848 $ 14,965,540
Undistributed net investment income 185,459 0 196,338
Accumulated net realized gain (loss) 3,993,877 830,183 3,491,380
Unrealized appreciation (depreciation)
on investments and foreign currency - net** 1,452,224 22,173,290 2,508,570
------------- ------------- -------------
NET ASSETS $ 23,718,168 $ 133,784,321 $ 21,161,828
============= ============= =============
Shares of beneficial interest outstanding,
no par value 2,125,410 6,763,704 1,918,930
============= ============= =============
Net asset value, and redemption price per share
(Net assets/shares of beneficial interest
outstanding) $ 11.16 $ 19.78 $ 11.03
Identified cost of investments $ 22,849,247 $ 119,689,860 $ 18,853,520
============= ============= =============
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 78
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA TAX- CORE FIXED
FREE INCOME FIXED INCOME INCOME
FUND FUND FUND
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends* $ 0 $ 0 $ 1,203,111
Interest 839,207 1,479,857 31,953,129
------------- ------------- -------------
839,207 1,479,857 33,156,240
------------- ------------- -------------
Expenses
Management fees (Note 3) 79,492 77,065 1,847,489
Trustee's fees and expenses (Note 3A) 3,091 3,091 3,091
Administrative fees (Note 3) 7,828 10,275 193,655
Custodian and accounting fees 48,927 51,072 157,618
Transfer agent fees 14,677 12,351 24,262
Audit and tax services fees 9,017 11,404 25,590
Registration fees 6,937 2,747 35,940
Amortization of organization expenses (Note 1H) 0 2,401 0
Other expenses 14,487 12,665 43,020
------------- ------------- -------------
Total expenses 184,456 183,071 2,330,665
Less expenses waived and reimbursed by the
investment adviser (Note 3) (81,116) (75,475) 0
------------- ------------- -------------
Net expenses 103,340 107,596 2,330,665
------------- ------------- -------------
Net investment income (loss) 735,867 1,372,261 30,825,575
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investments and
foreign currency (59,721) (1,005,793) (2,673,519)
Change in unrealized appreciation (depreciation)
on investments and foreign currency ** (4,731) 633,029 (7,502,115)
------------- ------------- -------------
Net realized gain (loss) and change in unrealized
appreciation (depreciation) (64,452) (372,764) (10,175,634)
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 671,415 $ 999,497 $ 20,649,941
============= ============= =============
</TABLE>
* NET OF FOREIGN WITHHOLDING TAXES OF $1,544, $2,903, AND $2,479 FOR THE
FIXED INCOME FUND, HIGH YIELD FIXED INCOME FUND AND PROVIDENT FUNDS,
RESPECTIVELY.
** NET OF CAPITAL GAIN WITHHOLDING TAXES OF $318 FOR THE HIGH YIELD FIXED
INCOME FUND.
See accompanying notes to financial statements.
<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* $ 275,762 $ 0 $ 213,424
Interest 3,385,886 1,206,258 11,953,978
------------- ------------- -------------
3,661,648 1,206,258 12,167,402
------------- ------------- -------------
Expenses
Management fees (Note 3) 183,586 67,029 608,679
Trustee's fees and expenses (Note 3A) 3,091 3,115 3,115
Administrative fees (Note 3) 15,070 8,447 79,669
Custodian and accounting fees 57,477 49,664 101,127
Transfer agent fees 8,485 6,296 14,129
Audit and tax services fees 23,591 13,248 22,297
Registration fees 9,427 6,173 31,807
Amortization of organization expenses (Note 1H) 0 0 0
Other expenses 13,402 12,398 25,421
------------- ------------- -------------
Total expenses 314,129 166,370 886,244
Less expenses waived and reimbursed by the
investment adviser (Note 3) (84,646) (74,205) (49,311)
------------- ------------- -------------
Net expenses 229,483 92,165 836,933
------------- ------------- -------------
Net investment income (loss) 3,432,165 1,114,093 11,330,469
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investments and
foreign currency (1,672,712) (13,130) (193,846)
Change in unrealized appreciation (depreciation)
on investments and foreign currency ** 798,429 102,659 137,861
------------- ------------- -------------
Net realized gain (loss) and change in unrealized
appreciation (depreciation) (874,283) 89,529 (55,985)
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 2,557,882 $ 1,203,622 $ 11,274,484
============= ============= =============
<CAPTION>
SMALL COMPANY SMALL COMPANY
PROVIDENT GROWTH VALUE
FUND FUND FUND
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends* $ 242,845 $ 5,418 $ 492,177
Interest 140,669 315,260 152,197
------------- ------------- -------------
383,514 320,678 644,374
------------- ------------- -------------
Expenses
Management fees (Note 3) 116,144 615,113 282,923
Trustee's fees and expenses (Note 3A) 3,091 3,116 2,570
Administrative fees (Note 3) 12,626 46,383 19,936
Custodian and accounting fees 45,111 72,418 89,143
Transfer agent fees 8,642 12,534 5,423
Audit and tax services fees 10,100 13,623 13,545
Registration fees 11,159 35,583 30,646
Amortization of organization expenses (Note 1H) 0 0 0
Other expenses 13,371 13,685 22,126
------------- ------------- -------------
Total expenses 220,244 812,455 466,312
Less expenses waived and reimbursed by the
investment adviser (Note 3) (69,257) (74,319) (126,805)
------------- ------------- -------------
Net expenses 150,987 738,136 339,507
------------- ------------- -------------
Net investment income (loss) 232,527 (417,458) 304,867
------------- ------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investments and
foreign currency 4,170,939 1,648,892 2,330,266
Change in unrealized appreciation (depreciation)
on investments and foreign currency ** 801,520 20,184,734 4,717,246
------------- ------------- -------------
Net realized gain (loss) and change in unrealized
appreciation (depreciation) 4,972,459 21,833,626 7,047,512
------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ 5,204,986 $ 21,416,168 $ 7,352,379
============= ============= =============
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 80
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
CALIFORNIA TAX-FREE INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 735,867 $ 902,820
Net realized gain (loss) on investments
and foreign currency (59,721) 43,213
Change in unrealized appreciation
(depreciation) on investments
and foreign currency (4,731) (828,427)
------------ ------------
Increase (decrease) in net assets from
operations 671,415 117,606
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (680,198) (904,671)
Net realized gain on investments (38,667) 0
------------ ------------
Total distributions (718,865) (904,671)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 504,671 3,611,000
Net asset value of shares issued in connection
with the reinvestment of distributions 159,040 138,121
Cost of shares redeemed (3,993,582) (3,908,509)
------------ ------------
Increase (decrease) in net assets derived from
capital share transactions (3,329,871) (159,388)
------------ ------------
Total increase (decrease) in net assets (3,377,321) (946,453)
NET ASSETS
Beginning of period 18,671,664 19,618,117
------------ ------------
End of period $ 15,294,343 $ 18,671,664
============ ============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 57,422 $ 0
============ ============
NUMBER OF SHARES OF THE FUND
Issued from the sale of shares 49,487 345,658
Issued in connection with the reinvestment of
distributions 15,827 13,260
Redeemed (397,538) (377,055)
------------ ------------
Net change (332,224) (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>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 1,372,261 $ 1,292,164
Net realized gain (loss) on investments
and foreign currency (1,005,793) 16,357
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 633,029 (1,581,472)
------------ ------------
Increase (decrease) in net assets from
operations 999,497 (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 4,829,471 5,175,627
Net asset value of shares issued in connection
with the reinvestment of distributions 1,360,354 1,401,075
Cost of shares redeemed (12,305,918) (1,659,371)
------------ ------------
Increase (decrease) in net assets derived from
capital share transactions (6,116,093) 4,917,331
------------ ------------
Total increase (decrease) in net assets (6,476,951) 3,243,305
NET ASSETS
Beginning of period 22,584,061 19,340,756
------------ ------------
End of period $16,107,110 $22,584,061
============ ============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 1,007,494 $ 993,531
============ ============
NUMBER OF SHARES OF THE FUND
Issued from the sale of shares 472,795 477,171
Issued in connection with the reinvestment of
distributions 137,132 131,433
Redeemed (1,217,932) (151,500)
------------ ------------
Net change (608,005) 457,104
============ ============
</TABLE>
See accompanying notes to financial statements.
LOOMIS SAYLES INVESTMENT TRUST 82
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
FIXED INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 30,825,575 $ 23,071,408
Net realized gain (loss) on investments
and foreign currency (2,673,519) (919,226)
Change in unrealized appreciation
(depreciation) on investments
and foreign currency (7,502,115) (7,370,250)
------------ ------------
Increase (decrease) in net assets from
operations 20,649,941 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 131,665,848 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 (22,297,368) (13,490,272)
------------ ------------
Increase (decrease) in net assets derived from
capital share transactions 133,365,115 56,904,504
------------ ------------
Total increase (decrease) in net assets 129,722,429 49,678,761
NET ASSETS
Beginning of period 298,007,359 248,328,598
------------ ------------
End of period $427,729,788 $298,007,359
============ ============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 23,473,198 $ 17,609,095
============ ============
NUMBER OF SHARES OF THE FUND
Issued from the sale of shares 10,967,383 3,955,911
Issued in connection with the reinvestment of
distributions 2,086,664 1,865,057
Redeemed (1,889,932) (1,094,141)
------------ ------------
Net change 11,164,115 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>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 3,432,165 $ 3,010,948
Net realized gain (loss) on investments
and foreign currency (1,672,712) (4,779,121)
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 798,429 5,374,813
----------- -----------
Increase (decrease) in net assets from
operations 2,557,882 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 12,588,000 7,037,798
Net asset value of shares issued in connection
with the reinvestment of distributions 1,725,977 4,155,972
Cost of shares redeemed 0 (13,592,930)
----------- -----------
Increase (decrease) in net assets derived from
capital share transactions 14,313,977 (2,399,160)
----------- -----------
Total increase (decrease) in net assets 14,134,408 (3,258,057)
NET ASSETS
Beginning of period 25,484,097 28,742,154
----------- -----------
End of period $39,618,505 $25,484,097
=========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 2,675,751 $ 1,935,682
=========== ===========
NUMBER OF SHARES OF THE FUND
Issued from the sale of shares 1,505,594 827,073
Issued in connection with the reinvestment of
distributions 212,821 536,948
Redeemed 0 (1,744,921)
----------- -----------
Net change 1,718,415 (380,900)
=========== ===========
</TABLE>
See accompanying notes to financial statements.
LOOMIS SAYLES INVESTMENT TRUST 84
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
INTERMEDIATE DURATION FIXED INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 1,114,093 $ 842,151
Net realized gain (loss) on investments
and foreign currency (13,130) (44,334)
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 102,659 (332,285)
----------- -----------
Increase (decrease) in net assets from
operations 1,203,622 465,532
----------- -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (1,091,374) (926,674)
Net realized gain on investments 0 0
----------- -----------
Total distributions (1,091,374) (926,674)
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 5,105,079 3,601,888
Net asset value of shares issued in connection
with the reinvestment of distributions 1,091,374 926,675
Cost of shares redeemed (100,000) (750,000)
----------- -----------
Increase (decrease) in net assets derived from
capital share transactions 6,096,453 3,778,563
----------- -----------
Total increase (decrease) in net assets 6,208,701 3,317,421
NET ASSETS
Beginning of period 14,371,078 11,053,657
----------- -----------
End of period $20,579,779 $14,371,078
=========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 30,067 $ 8,348
=========== ===========
NUMBER OF SHARES OF THE FUND
Issued from the sale of shares 541,558 368,852
Issued in connection with the reinvestment of
distributions 115,731 95,915
Redeemed (10,471) (77,882)
----------- -----------
Net change 646,818 386,885
=========== ===========
</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>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 11,330,469 $ 9,570,038
Net realized gain (loss) on investments
and foreign currency (193,846) 594,799
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 137,861 (4,148,573)
------------ ------------
Increase (decrease) in net assets from
operations 11,274,484 6,016,264
------------ ------------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (10,951,438) (9,637,617)
Net realized gain on investments (601,905) (1,310,699)
------------ ------------
Total distributions (11,553,343) (10,948,316)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 9,933,764 27,961,468
Net asset value of shares issued in connection
with the reinvestment of distributions 9,042,033 8,537,952
Cost of shares redeemed (12,042,298) (3,893,882)
------------ ------------
Increase (decrease) in net assets derived from
capital share transactions 6,933,499 32,605,538
------------ ------------
Total increase (decrease) in net assets 6,654,640 27,673,486
NET ASSETS
Beginning of period 146,757,474 119,083,988
------------ ------------
End of period $153,412,114 $146,757,474
============ ============
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 97,922 $ 39,773
============ ============
NUMBER OF SHARES OF THE FUND
Issued from the sale of shares 904,008 2,475,635
Issued in connection with the reinvestment of
distributions 828,276 751,273
Redeemed (1,098,862) (344,017)
------------ ------------
Net change 633,422 2,882,891
============ ============
</TABLE>
See accompanying notes to financial statements.
LOOMIS SAYLES INVESTMENT TRUST 86
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
PROVIDENT FUND
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 232,527 $ 69,172
Net realized gain (loss) on investments
and foreign currency 4,170,939 7,610,544
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 801,520 (1,265,437)
----------- -----------
Increase (decrease) in net assets from
operations 5,204,986 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 81,294 0
Net asset value of shares issued in connection
with the reinvestment of distributions 7,846,311 6,210,308
Cost of shares redeemed (3,453,700) (5,438,463)
----------- -----------
Increase (decrease) in net assets derived from
capital share transactions 4,473,905 771,845
----------- -----------
Total increase (decrease) in net assets 1,832,580 975,816
NET ASSETS
Beginning of period 21,885,588 20,909,772
----------- -----------
End of period $23,718,168 $21,885,588
=========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 185,459 $ 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 (333,917) (418,901)
----------- -----------
Net change 499,414 87,649
=========== ===========
See accompanying notes to financial statements.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
SMALL COMPANY GROWTH FUND
YEAR ENDED YEAR ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (417,458) $ (18,300)
Net realized gain (loss) on investments
and foreign currency 1,648,892 (401,251)
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 20,184,734 1,988,556
------------ -----------
Increase (decrease) in net assets from
operations 21,416,168 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 97,068,263 16,104,885
Net asset value of shares issued in connection
with the reinvestment of distributions 0 0
Cost of shares redeemed (2,374,000) 0
------------ -----------
Increase (decrease) in net assets derived from
capital share transactions 94,694,263 16,104,885
------------ -----------
Total increase (decrease) in net assets 116,110,431 17,673,890
NET ASSETS
Beginning of period 17,673,890 0
------------ -----------
End of period $133,784,321 $17,673,890
============ ===========
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 0 $ 0
============ ===========
NUMBER OF SHARES OF THE FUND
Issued from the sale of shares 5,380,260 1,514,677
Issued in connection with the reinvestment of
distributions 0 0
Redeemed (131,233) 0
------------ -----------
Net change 5,249,027 1,514,677
============ ===========
</TABLE>
*Commencement of operations on May 7, 1999.
See accompanying notes to financial statements.
LOOMIS SAYLES INVESTMENT TRUST 88
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
Year Ended Year Ended
September 30, September 30,
2000 1999*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 304,867 $ 63,093
Net realized gain (loss) on investments
and foreign currency 2,330,266 132,497
Change in unrealized appreciation
(depreciation) on investments
and foreign currency 4,717,246 (2,208,676)
------------ -----------
Increase (decrease) in net assets from
operations 7,352,379 (2,013,086)
------------ -----------
FROM DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (165,311) 0
Net realized gain on investments (1,282,171) 0
------------ -----------
Total distributions (1,447,482) 0
------------ -----------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from the sale of shares 253,733 39,904,541
Net asset value of shares issued in connection
with the reinvestment of distributions 1,357,039 0
Cost of shares redeemed (24,245,296) 0
------------ -----------
Increase (decrease) in net assets derived from
capital share transactions (22,634,524) 39,904,541
------------ -----------
Total increase (decrease) in net assets (16,729,627) 37,891,455
NET ASSETS
Beginning of period 37,891,455 0
------------ -----------
End of period $ 21,161,828 $37,891,455
============ ===========
UNDISTRIBUTED NET INVESTMENT INCOME
End of period $ 196,338 $ 63,093
============ ===========
NUMBER OF SHARES OF THE FUND
Issued from the sale of shares 23,385 4,031,719
Issued in connection with the reinvestment of
distributions 144,674 0
Redeemed (2,280,848) 0
------------ -----------
Net change (2,112,789) 4,031,719
============ ===========
</TABLE>
*Commencement of operations on June 30, 1999.
See accompanying notes to financial statements.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
LOOMIS SAYLES INVESTMENT TRUST 90
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
CALIFORNIA TAX-FREE INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------
2000
------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 10.18
-------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.47
Net realized and unrealized gain (loss) on investments (0.02)
-------
Total from investment operations 0.45
-------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.43)
Distributions from net realized capital gains (0.02)
-------
Total distributions (0.45)
-------
Net asset value, end of period $ 10.18
=======
Total return (%)(a) 4.6
Net assets, end of period (000) $15,294
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65
Gross expenses (%)(c) 1.16
Net investment income (loss) (%)(c) 4.63
Portfolio turnover rate (%) 3
</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 OPERATING 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 OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS PERIOD
YEAR ENDED ENDED YEAR ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
------------- ------------- ------------------- ------------
1999 1998 1997 1996 1995*
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.59 $ 10.41 $ 10.19 $ 10.23 $10.00
------- ------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.47 0.35 0.47 0.46 0.26
Net realized and unrealized gain (loss) on investments (0.41) 0.19 0.25 (0.04) 0.23
------- ------- ------- ------- ------
Total from investment operations 0.06 0.54 0.72 0.42 0.49
------- ------- ------- ------- ------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.47) (0.36) (0.47) (0.45) (0.26)
Distributions from net realized capital gains 0.00 0.00 (0.03) (0.01) (0.00)
------- ------- ------- ------- ------
Total distributions (0.47) (0.36) (0.50) (0.46) (0.26)
------- ------- ------- ------- ------
Net asset value, end of period $ 10.18 $ 10.59 $ 10.41 $ 10.19 $10.23
======= ======= ======= ======= ======
Total return (%)(a) 0.6 5.3 7.3 4.1 4.9
Net assets, end of period (000) $18,672 $19,618 $16,822 $13,460 $7,880
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65 0.65 0.65 0.65 0.65
Gross expenses (%)(c) 1.19 1.33 1.41 1.26 1.62
Net investment income (loss) (%)(c) 4.50 4.55 4.62 4.58 5.30
Portfolio turnover rate (%) 14 12 24 18 18
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 92
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
CORE FIXED INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------
2000
------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 10.55
-------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.69(e)
Net realized and unrealized gain (loss) on investments (0.12)
-------
Total from investment operations 0.57
-------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.61)
Distributions from net realized capital gains 0.00
-------
Total distributions (0.61)
-------
Net asset value, end of period $ 10.51
=======
Total return (%)(a) 5.8
Net assets, end of period (000) $16,107
Ratios to average net assets:
Net expenses (%)(b)(c) 0.53
Gross expenses (%)(c) 0.90
Net investment income (loss) (%)(c) 6.74
Portfolio turnover rate (%) 69
</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 OPERATING 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 OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) AMOUNT IS LESS THAN $0.01 PER SHARE.
(e) PER SHARE NET INVESTMENT INCOME HAS BEEN DETERMINED ON THE BASIS OF THE
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD.
<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS
YEAR ENDED ENDED YEAR ENDED PERIOD ENDED
SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
------------- ------------- ----------- ------------
1999 1998 1997 1996*
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.49 $ 10.66 $ 10.14 $10.00
------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.61 0.50 0.39 0.40
Net realized and unrealized gain (loss) on investments (0.76) 0.33 0.55 0.13
------- ------- ------- ------
Total from investment operations (0.15) 0.83 0.94 0.53
------- ------- ------- ------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.64) 0.00 (0.39) (0.39)
Distributions from net realized capital gains (0.15) 0.00(d) (0.03) 0.00
------- ------- ------- ------
Total distributions (0.79) 0.00 (0.42) (0.39)
------- ------- ------- ------
Net asset value, end of period $ 10.55 $ 11.49 $ 10.66 $10.14
======= ======= ======= ======
Total return (%)(a) (1.4) 7.8 9.2 5.3
Net assets, end of period (000) $22,584 $19,341 $16,110 $6,271
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65 0.65 0.65 0.65
Gross expenses (%)(c) 1.15 1.27 1.80 1.46
Net investment income (loss) (%)(c) 6.14 6.08 6.34 6.21
Portfolio turnover rate (%) 29 45 59 34
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 94
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
FIXED INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------
2000
------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 12.09
--------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.99(d)
Net realized and unrealized gain (loss) on investments (0.30)
--------
Total from investment operations 0.69
--------
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 $ 11.95
========
Total return (%)(a) 5.9
Net assets, end of period (000) $427,730
Ratio to average net assets:
Net expenses (%)(b)(c) 0.63
Gross expenses (%)(c) 0.63
Net investment income (loss) (%)(c) 8.34
Portfolio turnover rate (%) 19
</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 OPERATING 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 OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) PER SHARE NET INVESTMENT INCOME HAS BEEN DETERMINED ON THE BASIS OF THE
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD.
<PAGE>
<TABLE>
<CAPTION>
YEAR NINE MONTHS PERIOD
ENDED ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, YEAR ENDED DECEMBER 31, DECEMBER 31,
------------- ------------- ----------------------- ------------
1999 1998 1997 1996 1995*
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.47 $ 12.59 $ 12.08 $ 12.08 $ 10.00
-------- -------- -------- ------- -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.97 0.57 0.72 0.91 0.53
Net realized and unrealized gain (loss) on investments (0.27) (0.62) 0.89 0.27 2.21
-------- -------- -------- ------- -------
Total from investment operations 0.70 (0.05) 1.61 1.18 2.74
-------- -------- -------- ------- -------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.82) 0.00 (0.75) (0.90) (0.52)
Distributions from net realized capital gains (0.26) (0.07) (0.35) (0.28) (0.14)
-------- -------- -------- ------- -------
Total distributions (1.08) (0.07) (1.10) (1.18) (0.66)
-------- -------- -------- ------- -------
Net asset value, end of period $ 12.09 $ 12.47 $ 12.59 $ 12.08 $ 12.08
======== ======== ======== ======= =======
Total return (%)(a) 5.8 (0.4) 13.4 9.8 27.4
Net assets, end of period (000) $298,007 $248,329 $173,048 $91,746 $58,332
Ratio to average net assets:
Net expenses (%)(b)(c) 0.64 0.65 0.65 0.62 0.75
Gross expenses (%)(c) 0.64 0.68 0.70 0.62 0.83
Net investment income (loss) (%)(c) 8.30 7.37 7.56 7.97 8.15
Portfolio turnover rate (%) 22 31 41 90 76
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 96
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
HIGH YIELD FIXED INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------
2000
------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 8.40
-------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.94(d)
Net realized and unrealized gain (loss) on investments (0.11)
-------
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) $39,619
Ratios to average net assets:
Net expenses (%)(b)(c) 0.75
Gross expenses (%)(c) 1.03
Net investment income (loss) (%)(c) 11.22
Portfolio turnover rate (%) 28
</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 OPERATING 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 OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) PER SHARE NET INVESTMENT INCOME HAS BEEN DETERMINED ON THE BASIS OF THE
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE PERIOD.
<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS
YEAR ENDED ENDED YEAR ENDED PERIOD ENDED
SEPTEMBER 30, SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
------------- ------------ ------------ ------------
1999 1998 1997 1996*
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.41 $ 10.04 $ 10.16 $10.00
------- ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.95 0.77 0.70 0.56
Net realized and unrealized gain (loss) on investments 0.35 (2.31) 0.20 0.21
------- ------- ------- ------
Total from investment operations 1.30 (1.54) 0.90 0.77
------- ------- ------- ------
LESS DISTRIBUTIONS--
Dividends from net investment income (1.07) 0.00 (0.71) (0.56)
Distributions from net realized capital gains (0.24) (0.09) (0.31) (0.05)
------- ------- ------- ------
Total distributions (1.31) (0.09) (1.02) (0.61)
------- ------- ------- ------
Net asset value, end of period $ 8.40 $ 8.41 $ 10.04 $10.16
======= ======= ======= ======
Total return (%)(a) 16.8 (15.5) 8.8 7.7
Net assets, end of period (000) $25,484 $28,742 $28,872 $3,100
Ratios to average net assets:
Net expenses (%)(b)(c) 0.75 0.75 0.75 0.75
Gross expenses (%)(c) 1.15 1.12 1.17 2.73
Net investment income (loss) (%)(c) 12.22 10.69 8.82 9.42
Portfolio turnover rate (%) 57 39 94 9
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 98
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
INTERMEDIATE DURATION FIXED INCOME FUND
<TABLE>
<CAPTION>
PERIOD
ENDED
YEAR ENDED SEPTEMBER 30, SEPTEMBER 30,
------------------------ -------------
2000 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) 0.62 0.61 0.41
Net realized and unrealized gain (loss)
on investments 0.01 (0.26) (0.22)
------- ------- -------
Total from investment operations 0.63 0.35 0.19
------- ------- -------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.61) (0.69) (0.32)
Distributions from net realized capital gains 0.00 0.00 0.00
------- ------- -------
Total distributions (0.61) (0.69) (0.32)
------- ------- -------
Net asset value, end of period $ 9.55 $ 9.53 $ 9.87
======= ======= =======
Total return (%)(a) 6.9 3.6 1.9
Net assets, end of period (000) $20,580 $14,371 $11,054
Ratios to average net assets:
Net expenses (%)(b)(c) 0.55 0.55 0.55
Gross expenses (%)(c) 0.99 1.18 1.33
Net investment income (loss) (%)(c) 6.65 6.27 6.05
Portfolio turnover rate (%) 20 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 OPERATING 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 OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
LOOMIS SAYLES INVESTMENT TRUST 100
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
INVESTMENT GRADE FIXED INCOME FUND
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------
2000
------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 11.02
--------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.82
Net realized and unrealized gain (loss) on investments 0.00(d)
--------
Total from investment operations 0.82
--------
LESS DISTRIBUTIONS--
Dividends from net investment income (0.79)
Distributions from net realized capital gains (0.05)
--------
Total distributions (0.84)
--------
Net asset value, end of period $ 11.00
========
Total return (%)(a) 7.7
Net assets, end of period (000) $153,412
Ratio to average net assets:
Net expenses (%)(b)(c) 0.55
Gross expenses (%)(c) 0.58
Net investment income (loss) (%)(c) 7.45
Portfolio turnover rate (%) 18
</TABLE>
(a) TOTAL RETURNS WOULD HAVE BEEN LOWER HAD THE ADVISER NOT REDUCED ITS ADVISORY
FEES AND/OR BORNE OTHER OPERATING 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 OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
(d) AMOUNT IS LESS THAN $0.01 PER SHARE.
<PAGE>
<TABLE>
<CAPTION>
YEAR NINE MONTHS
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
Ratio 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 rate (%) 18 31 58 74 22
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 102
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
PROVIDENT FUND
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
------------------------
2000
------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 13.46
-------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.12
Net realized and unrealized gain (loss) on investments 2.43
-------
Total from investment operations 2.55
-------
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 $ 11.16
=======
Total return (%)(a) 25.3
Net assets, end of period (000) $23,718
Ratios to average net assets:
Net expenses (%)(b)(c) 0.65
Gross expenses (%)(c) 0.95
Net investment income (loss) (%)(c) 1.00
Portfolio turnover rate (%) 356
</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 OPERATING 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 OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
<PAGE>
<TABLE>
<CAPTION>
YEAR NINE MONTHS PERIOD
ENDED ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, YEAR ENDED DECEMBER 31, 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 rate (%) 250 96 109 97 22
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 104
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
FINANCIAL HIGHLIGHTS
SMALL COMPANY GROWTH FUND
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2000 1999*
---------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 11.67 $ 10.00
-------- -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) (0.06) (0.01)
Net realized and unrealized gain (loss) on investments 8.17 1.68
-------- -------
Total from investment operations 8.11 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 $ 19.78 $ 11.67
======== =======
Total return (%)(a) 69.5 16.7
Net assets, end of period (000) $133,784 $17,674
Ratios to average net assets:
Net expenses (%)(b)(c) 0.90 0.90
Gross expenses (%)(c) 0.99 2.17
Net investment income (loss) (%)(c) (0.51) (0.51)
Portfolio turnover rate (%) 174 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 OPERATING 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 OPERATING
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>
YEAR ENDED PERIOD ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2000 1999*
---------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 9.40 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS--
Net investment income (loss) 0.13 0.02
Net realized and unrealized gain (loss) on investments 1.86 (0.62)
------- -------
Total from investment operations 1.99 (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 $ 11.03 $ 9.40
======= =======
Total return (%)(a) 21.8 (6.0)
Net assets, end of period (000) $21,162 $37,891
Ratios to average net assets:
Net expenses (%)(b)(c) 0.90 0.90
Gross expenses (%)(c) 1.24 1.31
Net investment income (loss) (%)(c) 0.81 0.82
Portfolio turnover rate (%) 124 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 OPERATING 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 OPERATING
EXPENSES WOULD HAVE BEEN HIGHER.
(c) ANNUALIZED FOR PERIODS LESS THAN ONE YEAR.
LOOMIS SAYLES INVESTMENT TRUST 106
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
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 The Funds.
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 (formerly Loomis Sayles Core Growth Fund)
Loomis Sayles Small Company Growth Fund
Loomis Sayles Small Company Value Fund
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America 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 and markets 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.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
B. REPURCHASE AGREEMENTS -- The Funds may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Funds take
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Funds to resell, the obligation at an agreed-upon
price and time. This arrangement results in a fixed rate of return that is not
subject to market fluctuations during the Funds' holding period. The Funds,
through their custodian, receive delivery of the underlying securities
collateralizing repurchase agreements. It is the Funds' policy that the market
value of the collateral be at least equal to 102% of the repurchase price. These
securities are marked-to-market daily. Loomis Sayles is responsible for
determining that the value of the collateral is at all times at least equal to
102% of the repurchase price. In connection with transactions in repurchase
agreements, if the seller defaults and the value of the collateral declines or
if the seller enters into insolvency proceedings, realization of the collateral
by the Funds may be delayed or limited.
C. FOREIGN CURRENCY TRANSLATION AND FOREIGN INVESTMENTS -- The books and records
of each of the Funds (including those Funds that invest in foreign investments)
are maintained in U.S. dollars. The value of investments, 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 each day. Purchases and sales of investments, 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 investments held. All such fluctuations are included with net realized
and unrealized gain or loss from investments.
Net realized gains and losses on foreign currency transactions represent net
gains and losses from sales of foreign currencies, currency gains or losses
realized between the trade and settlement dates on securites transactions, and
the differences between the amounts of dividends, interest and foreign
withholding taxes recorded on the Funds' books and the the U.S dollar equivalent
of the amounts actually received or paid. Net unrealized foreign exchange gains
or losses arise from changes in the value of assets and liabilities other than
investments in securities at year end resulting from changes in exchange rates.
Certain Funds use foreign currency exchange contracts to facilitate transactions
in foreign-denominated investments. 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 investments
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.
LOOMIS SAYLES INVESTMENT TRUST 108
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
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 investments may enter into forward foreign currency exchange contracts
to protect investments against changes in future foreign exchange rates. A
forward foreign currency exchange contract is an agreement between two parties
to buy or sell currency at a set price on a future date.
The market value of the contract will fluctuate with changes in currency
exchange rates. The contract is marked-to-market daily using the forward
currency exchange rate and the change in market value is recorded as unrealized
appreciation (depreciation) on foreign currency translations in the Funds'
Statements of Assets and Liabilities. Realized gain or loss is recognized when
the contract is closed equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed and recorded
as realized gain (loss) on foreign currency transactions in the Funds'
Statements of Operations.
Risks may arise upon entering into forward foreign currency exchange contracts
from the potential inability of the counterparties to meet the terms of their
contracts and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar. At September 30, 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 a method
that approximates 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 to a particular fund, 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.
At September 30, 2000, the California Tax-Free Income Fund had available a
capital loss carryforward of $12,015, which will expire on September 30, 2008.
The Core
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
Fixed Income Fund had available a capital loss carryforward of $89,892, which
will expire on September 30, 2008. The Fixed Income Fund had available a capital
loss carryforward of $2,192,468 which will expire on September 30, 2008. The
High Yield Fixed Income Fund had available a capital loss carryforward of
$4,064,310, which will expire on September 30, 2008. The Intermediate Duration
Fixed Income Fund had available a capital loss carryforward of $96,081, of which
$37,812 will expire on September 30, 2006 and $58,269 will expire on September
30, 2008. The realized losses are intended to be used to offset future capital
gains.
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 accounting principles generally accepted in the United States of America.
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 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 INVESTMENTS -- (excluding short-term investments) for
each Fund for the year ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
Purchases
--------------------------------
U.S. Government Other
--------------- ------------
<S> <C> <C>
California Tax-Free Income Fund ........... $ 0 $ 470,000
Core Fixed Income Fund .................... 7,921,833 5,476,141
Fixed Income Fund ......................... 9,614,263 153,995,951
High Yield Fixed Income Fund .............. 0 13,909,634
Intermediate Duration Fixed Income Fund ... 3,834,765 5,394,039
Investment Grade Fixed Income Fund ........ 682,737 30,663,493
Provident Fund ............................ 0 71,442,074
Small Company Growth Fund ................. 0 228,300,458
Small Company Value Fund .................. 0 42,375,486
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 110
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Sales
--------------------------------
U.S. Government Other
--------------- ------------
<S> <C> <C>
California Tax-Free Income Fund ........... $ 0 $ 4,077,461
Core Fixed Income Fund .................... 10,649,537 8,519,053
Fixed Income Fund ......................... 37,533,233 30,230,885
High Yield Fixed Income Fund .............. 767,938 7,327,177
Intermediate Duration Fixed Income Fund ... 2,688,924 580,679
Investment Grade Fixed Income Fund ........ 5,353,756 22,024,815
Provident Fund ............................ 0 74,656,870
Small Company Growth Fund ................. 0 135,748,793
Small Company Value Fund .................. 0 63,372,781
</TABLE>
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES -- For the twelve
months ended September 30, 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 Companies, L.P., a publicly traded limited partnership whose general
partner is indirectly owned by CDC Asset Management ("CDC AM") as of October 30,
2000. CDC AM is part of the Caisse des Depots et Consignations. Separate
management agreements for each Fund in effect during the year ended September
30, 2000 provided for fees at the following annual percentage rate of each
Fund's average daily net assets indicated below. Loomis Sayles has contractually
agreed, until February 1, 2001, to reduce its advisory fees and/or bear other
expenses, to the extent necessary to limit the total operating expenses of 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%.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
Effective May 16, 2000, Loomis Sayles began charging the Funds for
administrative services. As of September 30, 2000 the following amounts were
incurred by the Funds:
<TABLE>
<CAPTION>
FUND AMOUNT
---- -------
<S> <C>
California Tax-Free Income Fund ............................. $ 1,740
Core Fixed Income Fund ...................................... 1,917
Fixed Income Fund ........................................... 45,044
High Yield Fixed Income Fund ................................ 3,848
Intermediate Duration Fixed Income Fund ..................... 2,210
Investment Grade Fixed Income Fund .......................... 17,792
Provident Fund .............................................. 2,756
Small Company Growth Fund ................................... 13,228
Small Company Value Fund .................................... 3,776
</TABLE>
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, CDC Asset Management 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. BENEFICIAL INTEREST -- The following Funds have shareholders, each owning
beneficially or of record 10% or more of the shares outstanding of a fund as of
September 30, 2000 and the total percentage of the shares of a fund held by such
shareholders.
<TABLE>
<CAPTION>
10% or Greater Shareholders
-----------------------------
# of % of
Funds Shareholders Shares Held
----- ------------ -----------
<S> <C> <C>
California Tax-Free Income Fund ............... 2 28%
Core Fixed Income Fund ........................ 2 21%
High Yield Fixed Income Fund .................. 2 32%
Intermediate Duration Fixed Income Fund ....... 2 93%
Investment Grade Fixed Income Fund ............ 1 11%
Provident Fund ................................ 1 33%
Small Company Growth Fund ..................... 1 13%
</TABLE>
5. 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 net assets in securities offering high current income, which generally
will be in the lower rating categories of recognized rating agencies. These
securities are regarded as predominantly speculative with respect to the
capacity to pay interest and repay principal in accordance with the terms of the
obligations and will generally involve more credit risk than securities in the
higher-rated categories. In addition, the trading market for high yield
securities may be relatively less liquid than the market for higher-rated
securities.
LOOMIS SAYLES INVESTMENT TRUST 112
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
6. 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.
7. SUBSEQUENT EVENT -- On October 30, 2000, CDC Asset Management ("CDC AM")
acquired Loomis Sayle's parent company, Nvest Companies, L.P. and its
subsidiaries. CDC AM is part of the Caisse des Depots et Consignations ("CDC").
CDC was created by the French Government and currently is supervised by the
French Parliament.
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
2000 U.S. TAX AND DISTRIBUTION INFORMATION TO SHAREHOLDERS (UNAUDITED)
EXEMPT INTEREST DIVIDENDS -- 96.56% of the dividends paid by the California
Tax-Free Income Fund from net investment income for the year ended September 30,
2000, constituted exempt interest dividends for federal income tax purposes.
CAPITAL GAINS DISTRIBUTIONS -- Pursuant to Internal Revenue Section 852(b), the
following Funds paid distributions, which have been designated as capital gains
distributions for the fiscal year ended September 30, 2000.
<TABLE>
<CAPTION>
Dollar
Amount
------
<S> <C>
California Tax-Free Income Fund....................... $ 38,618
Investment Grade Fixed Income Fund.................... 508,275
Provident Fund........................................ 4,666,379
Small Company Value Fund.............................. 65,701
</TABLE>
CORPORATE DIVIDENDS RECEIVED DEDUCTION -- For the fiscal year ended September
30, 2000, a percentage of dividends distributed by the Funds listed below
qualify for the dividends received deduction for corporate shareholders. These
percentages are as follows:
<TABLE>
<CAPTION>
Qualifying
Percentage
----------
<S> <C>
Fixed Income Fund........................................... 4.24%
High Yield Fixed Income Fund................................ 5.27%
Investment Grade Fixed Income Fund.......................... 1.94%
Provident Fund.............................................. 5.40%
Small Company Growth Fund................................... 0.62%
Small Company Value Fund.................................... 10.95%
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 114
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
SHAREHOLDER MEETING RESULTS (UNAUDITED)
At a special shareholders' meeting of the Loomis Sayles Investment Trust held on
October 12, 2000 shareholders of each Fund voted for the following proposal:
To approve new investment advisory agreements between the Trust on behalf of
each Fund and Loomis Sayles & Company, L.P.
<TABLE>
<CAPTION>
Voted Voted Abstained Total
Fund Name For Against Votes Votes
--------- ----- ------- --------- -----
<S> <C> <C> <C> <C>
Loomis Sayles California
Tax-Free Income Fund 1,090,110 0 0 1,090,110
Loomis Sayles Core Fixed
Income Fund 1,154,979 80,716 0 1,235,695
Loomis Sayles Provident
Fund 2,103,407 99 0 2,103,506
Loomis Sayles Fixed Income
Fund 20,509,554 0 0 20,509,554
Loomis Sayles High Yield
Fixed Income Fund 4,004,086 0 0 4,004,086
Loomis Sayles Intermediate
Duration Fixed Income Fund 1,591,033 0 0 1,591,033
Loomis Sayles Investment
Grade Fixed Income Fund 9,294,724 0 0 9,294,724
Loomis Sayles Small
Company Growth Fund 4,442,718 0 0 4,442,718
Loomis Sayles Small
Company Value Fund 1,072,286 0 0 1,072,286
</TABLE>
<PAGE>
LOOMIS SAYLES INVESTMENT TRUST
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of the Loomis Sayles Investment
Trust Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Loomis Sayles Investment Trust
Funds (consisting of the Loomis Sayles California Tax-Free Income Fund, Core
Fixed Income Fund, Fixed Income Fund, High Yield Fixed Income Fund, Intermediate
Duration Fixed Income Fund, Investment Grade Fixed Income Fund, Provident Fund,
Small Company Growth Fund and Small Company Value Fund) (collectively, the
"Funds") at September 30, 2000, the results of each of their operations, the
changes in each of their net assets and the financial highlights for the periods
indicated therein, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 2000 by correspondence with the custodian and brokers, provide a
reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
November 15, 2000
LOOMIS SAYLES INVESTMENT TRUST 116
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LOOMIS SAYLES INVESTMENT TRUST
One Financial Center
Boston, MA 02111
Telephone: 888 226-9699
www.loomissayles.com
