LOOMIS SAYLES INVESTMENT TRUST, 485APOS, 2000-11-30

LOOMIS SAYLES INVESTMENT TRUST
485APOS, 2000-11-30

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<PAGE>

AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2000
REGISTRATION NOS. 333-22931 AND 811-8282

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
----------------------------------

FORM N-1A
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933 /X/
PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO. 9 /X/
REGISTRATION STATEMENT UNDER
AMENDMENT NO. 1940 /X/
(CHECK APPROPRIATE BOX OR BOXES) /X/

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

LOOMIS SAYLES INVESTMENT TRUST
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)

ONE FINANCIAL CENTER, BOSTON, MA 02111
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (617) 482-2450

NAME AND ADDRESS
OF AGENT FOR SERVICE COPY TO
-------------------- -------

SHEILA M. BARRY, ESQUIRE TRUMAN S. CASNER, ESQUIRE
LOOMIS, SAYLES & COMPANY, L.P. ROPES & GRAY
ONE FINANCIAL CENTER ONE INTERNATIONAL PLACE
BOSTON, MA 02111 BOSTON, MA 02110

IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX):

/ / IMMEDIATELY UPON FILING PURSUANT TO PARAGRAPH (B) OF RULE 485

/ / ON _________________________, PURSUANT TO PARAGRAPH (B)

/x/ 60 DAYS AFTER FILING PURSUANT TO PARAGRAPH (A)(1)

/ / ON _________________________, PURSUANT TO PARAGRPH (A)(1)

/ / 75 DAYS AFTER FILING PURSUANT TO PARAGRAPH (A)(2)

/ / ON _________________________, PURSUANT TO PARAGRAPH (A)(2)

IF APPROPRIATE, CHECK THE FOLLOWING BOX:

/ / THIS POST-EFFECTIVE AMENDMENT DESIGNATES A NEW EFFECTIVE DATE FOR A
PREVIOUSLY FILED POST-EFFECTIVE AMENDMENT.

----------------------------------
<PAGE>

[LOGO]

LOOMIS SAYLES CORE FIXED INCOME FUND

prospectus . February 1, 2001

Loomis, Sayles & Company, L.P., which has been an investment adviser since
1926, is the investment adviser of the Fund.

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIME.
<PAGE>

TABLE OF CONTENTS

<TABLE>
<S> <C>
RISK/RETURN SUMMARY 1
General Information 1
Loomis Sayles Core Fixed Income Fund 2
Summary of Principal Risks 4

EXPENSES OF THE FUND 7

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS AND RISK CONSIDERATIONS 8

MANAGEMENT 14
Investment Adviser 14
Portfolio Managers 14

GENERAL INFORMATION 15
Pricing 15
How to Purchase Shares 15
How to Redeem Shares 16
Dividends and Distributions 17
Tax Consequences 17

FINANCIAL HIGHLIGHTS 18

APPENDIX A 20
</TABLE>
<PAGE>

RISK/RETURN SUMMARY

GENERAL INFORMATION

Loomis Sayles Investment Trust is a group of nine mutual funds. This Prospectus
describes the Loomis Sayles Core Fixed Income Fund.

The following is a summary of certain key information about the Fund. You will
find additional information about the Fund, including a detailed description of
the risks of an investment in the Fund, after this summary.

This Risk/Return Summary describes the Fund's objective, principal investment
strategies, principal risks, and performance. The summary includes a short
discussion of some of the principal risks of investing in the Fund. A further
discussion of these and other principal risks begins after this summary.

A more detailed description of the Fund, including some of the additional risks
associated with investing in the Fund, can be found further back in this
Prospectus. Please be sure to read this additional information before you
invest.

The Risk/Return Summary includes a bar chart showing the Fund's annual returns
and a table showing the Fund's average annual returns. The bar chart and table
provide an indication of the historical risk of an investment in the Fund by
showing:
. how the Fund's performance varied from year to year over the life of the
Fund; and
. how the Fund's average annual returns for one year and over the life of the
Fund compared to those of a broad-based securities market index.

The Fund's past performance, of course, does not necessarily indicate how it
will perform in the future.

You can lose money by investing in the Fund. The Fund may not achieve its
objective and is not intended to be a complete investment program. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.

1
<PAGE>

LOOMIS SAYLES CORE FIXED INCOME FUND

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

PRINCIPAL INVESTMENT STRATEGIES. The Fund invests predominantly in investment
grade fixed income securities, although it may invest up to 10% of its assets
in lower rated fixed income securities ("junk bonds"). The Fund may invest in
fixed income securities of any maturity.

In deciding which securities to buy and sell, Loomis Sayles will consider,
among other things, the financial strength of the issuer, current interest
rates, Loomis Sayles' expectations regarding general trends in interest rates,
and comparisons of the level of risk associated with particular investments
with Loomis Sayles' expectations concerning the potential return of those
investments.

Three themes typically drive the Fund's investment approach. First, Loomis
Sayles generally seeks fixed income securities of issuers whose credit profiles
Loomis Sayles believes are improving. Second, the Fund makes significant use of
non-market related securities, which are securities that may not have a direct
correlation with changes in interest rates. Loomis Sayles believes that the
Fund may generate positive returns by having a portion of the Fund's assets
invested in non-market related securities, rather than by relying primarily on
changes in interest rates to produce returns for the Fund. Third, Loomis Sayles
analyzes different sectors of the economy and differences in the yields
("spreads") of various fixed income securities in an effort to find securities
that Loomis Sayles believes may produce attractive returns for the Fund in
comparison to their risk.

Loomis Sayles generally prefers securities that are protected against calls
(early redemption by the issuer).

The Fund may invest any portion of its assets in securities of Canadian issuers
and up to 20% of its assets in other foreign securities, including emerging
markets securities.

The Fund also may invest in fixed income securities, U.S. Government
securities, mortgage-backed securities, asset-backed securities, real estate
investment trusts, collateralized mortgage obligations, and Rule 144A
securities.

PRINCIPAL RISKS. Among the principal risks of investing in the Fund are the
following:
. interest rate risk (the risk that the value of the Fund's investments will
fall if interest rates rise);
. credit risk (the risk that companies in which the Fund invests, or with
which it does business, will fail financially, and be unwilling or unable to
meet their obligations to the Fund);
. market risk (the risk that the value of the Fund's investments will fall as
a result of movements in financial markets generally); and
. management risk (the risk that Loomis Sayles' investment techniques will be
unsuccessful and may cause the Fund to incur losses).
<PAGE>

BAR CHART. The following bar chart shows year-to-year changes in the
performance of the Fund.

[CHART]

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on April 24, 1996. The Fund's shares were registered
under the Securities Act of 1933 on March 7, 1997.

The Fund's returns will vary. For example, during the period shown in the bar
chart, the Fund's best quarter was up % ( quarter, ), and the Fund's
worst quarter was down % ( quarter, ).

PERFORMANCE TABLE. The following table compares the performance of the Fund to
the Merrill Lynch Domestic Master Index, an index that tracks investment grade
U.S. fixed income securities. The index is unmanaged, has no operating costs,
and is included in the table to facilitate your comparison of the Fund's
performance to a broad-based market index.

AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Inception
year (4/24/96)*
-----------------------------------------------------
<S> <C> <C>
LOOMIS SAYLES CORE FIXED INCOME FUND % %
MERRILL LYNCH DOMESTIC MASTER INDEX % %/1/
</TABLE>

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on April 24, 1996. The Fund's shares were registered
under the Securities Act of 1933 on March 7, 1997.

The Fund's performance through December 31, 2000 benefited from Loomis
Sayles' agreement to limit the Fund's expenses.

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

/1/Since inception data for the index covers the period from the month-end
following the Fund's inception date through December 31, 2000.

3
<PAGE>

SUMMARY OF PRINCIPAL RISKS

The value of your investment in the Fund will fluctuate with changes in the
values of the Fund's investments. Many factors can affect those values. This
section describes the principal risks that may affect the Fund's portfolio as a
whole. The Fund could be subject to additional principal risks because the
types of investments made by the Fund can change over time.

INTEREST RATE RISK

This is the risk that changes in interest rates will affect the value of the
Fund's investments in fixed income securities, such as bonds, notes, asset-
backed securities, and other income producing securities. Fixed income
securities are obligations of the issuer to make payments of principal and/or
interest on future dates. Increases in interest rates may cause the value of
the Fund's investments to decline.

Interest rate risk may be compounded for the Fund since it invests in mortgage-
backed securities. The value of mortgage-backed securities generally is more
sensitive to changes in interest rates than other types of fixed income
securities. When interest rates rise, the maturities of mortgage-backed
securities tend to lengthen, and their value decreases more significantly. In
addition, these types of securities are subject to prepayment when interest
rates fall, which generally results in lower returns because the Fund must
reinvest assets previously invested in these types of securities in fixed
income securities with lower interest rates.

The Fund also faces increased interest rate risk when it invests in fixed
income securities paying no current interest, such as zero coupon securities.

CREDIT RISK

MARKET RISK

This is the risk that the value of the Fund's investments will change as the
markets for fixed income securities fluctuate and that prices overall may
decline.

FOREIGN RISK

This is the risk associated with investments in issuers located in foreign
countries. A Fund's investments in foreign securities may experience more rapid
and extreme changes in value than investments in securities of U.S. companies.
<PAGE>

The securities markets of many foreign countries are relatively small, with a
limited number of issuers and a small number of securities. In addition,
foreign companies often are not subject to the same degree of regulation as
U.S. companies. Reporting, accounting, and auditing standards of foreign
countries differ, in some cases significantly, from U.S. standards.
Nationalization, expropriation or confiscatory taxation, currency blockage,
political changes, or diplomatic developments can cause the value of a Fund's
investments in a foreign country to decline. In the event of nationalization,
expropriation, or other confiscation, a Fund that invests in foreign securities
could lose its entire investment.

CURRENCY RISK

This is the risk that fluctuations in exchange rates between the U.S. dollar
and foreign currencies may cause the value of a Fund's investments to decline.
The Fund is subject to currency risk because it may invest in securities
denominated in, or receiving revenues in, foreign currencies.

LEVERAGING RISK

When the Fund borrows money or otherwise leverages its portfolio, the value of
an investment in the Fund will be more volatile, and all other risks generally
are compounded. Since the Fund may create leverage by using investments such as
repurchase agreements or by borrowing money, the Fund faces this risk.

DERIVATIVES RISK

Derivatives are financial contracts whose value depends upon or is derived from
the value of an underlying asset, reference rate, or index. Examples of
derivatives include options, futures, and swap transactions. The Fund may use
derivatives as part of a strategy designed to reduce other risks ("hedging").
The Fund also may use derivatives to earn income, enhance yield, and broaden
Fund diversification. This use of derivatives entails greater risk than using
derivatives solely for hedging purposes. Funds that use derivatives also face
additional risks, such as the credit risk of the other party to a derivative
contract, the risk of difficulties in pricing and valuation, and the risk that
changes in the value of a derivative may not correlate perfectly with relevant
assets, rates, or indices.

LIQUIDITY RISK

Liquidity risk exists when particular investments are difficult to purchase or
sell, possibly preventing the Fund from selling out of these illiquid
securities at an advantageous price. Derivatives and securities that involve
substantial interest rate risk or credit risk tend to involve greater liquidity
risk. In addition, liquidity risk tends to increase to the extent the Fund
invests in securities whose sale may be restricted by law or by contract, such
as Rule 144A securities.

5
<PAGE>

MANAGEMENT RISK

Management risk is the risk that Loomis Sayles' investment techniques could
fail to achieve the Fund's objective and could cause your investment in the
Fund to lose value. The Fund is subject to management risk because the Fund is
actively managed by Loomis Sayles. Loomis Sayles will apply its investment
techniques and risk analyses in making investment decisions for the Fund, but
there can be no guarantee that Loomis Sayles' decisions will produce the
desired results. For example, in some cases derivative and other investment
techniques may be unavailable or Loomis Sayles may determine not to use them,
even under market conditions where their use could have benefited the Fund.
<PAGE>

EXPENSES OF THE FUND

The following table presents the expenses that you would pay if you buy and
hold shares of the Fund.

The Fund does not impose a sales charge, a redemption fee, or an exchange fee.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

<TABLE>
<CAPTION>
Total
Annual Fee
Fund Waiver/
Management Distribution Other Operating Reimburse- Net
Fund Fees (12b-1) Fees Expenses Expenses ment** Expenses**
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Loomis Sayles Core Fixed
Income Fund* .35% none % % % %
------------------------------------------------------------------------------------------
</TABLE>
* The expense information in this table has been
restated to reflect current fees.

** Reflects Loomis Sayles' contractual obligation to
limit the Fund's expenses through February 1,
2002.

EXAMPLE

The following example translates the "Total Annual Fund Operating Expenses"
column shown in the preceding table into dollar amounts. This example is
intended to help you compare the cost of investing in the Fund with the cost of
investing in other mutual funds.

This example makes certain assumptions. It assumes that you invest $10,000 in
the Fund for the time periods shown and then redeem all your shares at the end
of those periods. This example also assumes that your investment has a 5%
return each year and that the Fund's operating expenses remain the same. Please
remember that this example is hypothetical, so that your actual costs and
returns may be higher or lower.

<TABLE>
<CAPTION>
10
Fund 1 Year* 3 Years* 5 Years* Years*
------------------------------------------------------
<S> <C> <C> <C> <C>
Loomis Sayles Core
Fixed Income Fund $ $ $ $
------------------------------------------------------
</TABLE>
* Expenses shown for the Fund include the fee waiver/reimbursement for the
first year of each period.

7
<PAGE>

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS AND RISK CONSIDERATIONS

This section provides more information on the Fund's investments and risk
considerations. Except for the Fund's investment objective, and any investment
policies that are identified as "fundamental," all of the investment policies
and strategies of the Fund may be changed without a vote of the Fund's
shareholders.

Except where specifically noted elsewhere in this Prospectus, the Fund may use
any of the investment strategies described in this section. Some of these
investment strategies are principal investment strategies for the Fund, while
others are secondary investment strategies for the Fund.

TEMPORARY DEFENSIVE STRATEGIES

For temporary defensive purposes, the Fund may invest any portion of its assets
in cash or in any securities Loomis Sayles deems appropriate. Although Loomis
Sayles has the option to use these defensive strategies, Loomis Sayles may
choose not to use them for a variety of reasons, even in very volatile market
conditions. The Fund may miss certain investment opportunities if it uses
defensive strategies and thus may not achieve its investment objective.

PORTFOLIO TURNOVER

Portfolio turnover considerations will not limit Loomis Sayles' investment
discretion in managing the assets of the Fund. The Fund anticipates that its
portfolio turnover rate will vary significantly from time to time depending on
the volatility of economic and market conditions. High portfolio turnover may
generate higher costs and higher levels of taxable gains, both of which may
hurt the performance of your investment.

FIXED INCOME SECURITIES

Fixed income securities pay a specified rate of interest or dividends, or a
rate that is adjusted periodically by reference to some specified index or
market rate. Fixed income securities include securities issued by federal,
state, local, and foreign governments and related agencies, and by a wide range
of private or corporate issuers. Fixed income securities include, among others,
bonds, debentures, notes, bills, and commercial paper. Because interest rates
vary, it is impossible to predict the income of the Fund for any particular
period. The net asset value of the Fund's shares will vary as a result of
changes in the value of the securities in the Fund's portfolio.

INVESTMENT GRADE FIXED INCOME SECURITIES

To be considered investment grade quality, at least one major rating agency
must have rated the security in one of its top four rating categories at the
time the
<PAGE>

Fund acquires the security or, if the security is unrated, Loomis Sayles must
have determined it to be of comparable quality.

LOWER RATED FIXED INCOME SECURITIES

A fixed income security will be considered a lower rated fixed income security
("junk bond") if it is of below investment grade quality. To be considered
investment grade quality, at least one major rating agency must have rated the
security in one of its top four rating categories at the time the Fund acquires
the security or, if the security is unrated, Loomis Sayles must have determined
it to be of comparable quality. Therefore, lower rated fixed income securities
are securities that, at the time the Fund acquires the security, none of the
major rating agencies has rated in one of its top four rating categories, or
unrated securities that Loomis Sayles has determined to be of comparable
quality.

Lower rated fixed income securities are subject to greater credit risk and
market risk than higher quality fixed income securities. Lower rated fixed
income securities are considered predominantly speculative with respect to the
ability of the issuer to make timely principal and interest payments. The
Fund's achievement of its investment objective may be more dependent on Loomis
Sayles' own credit analysis than is the case with funds that invest in higher
quality fixed income securities. The market for lower rated fixed income
securities may be more severely affected than some other financial markets by
economic recession or substantial interest rate increases, by changing public
perceptions of this market, or by legislation that limits the ability of
certain categories of financial institutions to invest in these securities. In
addition, the secondary market may be less liquid for lower rated fixed income
securities. This lack of liquidity at certain times may affect the values of
these securities and may make the evaluation and sale of these securities more
difficult. Lower rated fixed income securities may be in poor standing or in
default and typically have speculative characteristics.

For more information about the ratings services' descriptions of the various
rating categories, see Appendix A. The Fund may continue to hold fixed income
securities that are downgraded in quality subsequent to their purchase if
Loomis Sayles believes it would be advantageous to do so.

U.S. GOVERNMENT SECURITIES

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

Although U.S. Government securities generally do not involve the credit risks
associated with other types of fixed income securities, the market values of
U.S.

9
<PAGE>

Government securities fluctuate as interest rates change. Yields on U.S.
Government securities tend to be lower than those on corporate securities of
comparable maturities.

Some U.S. Government securities, such as Government National Mortgage
Association ("GNMA") certificates, are known as "mortgage-backed" securities.
Interest and principal payments on the mortgages underlying mortgage-backed
U.S. Government securities are passed through to the holders of the security.
If the Fund purchases mortgage-backed securities at a discount or a premium,
the Fund will recognize a gain or loss when the payments of principal, through
prepayment or otherwise, are passed through to the Fund and, if the payment
occurs in a period of falling interest rates, the Fund may not be able to
reinvest the payment at as favorable an interest rate. As a result of these
principal prepayment features, mortgage-backed securities are generally more
volatile investments than many other fixed income securities.

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

ZERO COUPON SECURITIES

Zero coupon securities accrue interest at a specified rate, but do not pay
interest in cash on a current basis. If the Fund invests in zero coupon
securities, it is required to distribute the income on these securities to Fund
shareholders as the income accrues, even though the Fund is not receiving the
income in cash on a current basis. The Fund thus may have to sell other
investments to obtain cash to make income distributions at times when Loomis
Sayles would not otherwise deem it advisable to do so. The market value of zero
coupon securities often is more volatile than that of other fixed income
securities of comparable quality and maturity.

WHEN-ISSUED SECURITIES

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

be lower than the yield available on other, comparable securities at the time
of delivery. If the Fund has outstanding obligations to buy when-issued
securities, it will segregate liquid assets at its custodian bank in an amount
sufficient to satisfy these obligations.

MORTGAGE-BACKED SECURITIES

Mortgage-backed securities, such as GNMA certificates or securities issued by
the Federal National Mortgage Association ("Fannie Mae"), differ from
traditional fixed income securities. Among the major differences are that
interest and principal payments are made more frequently, usually monthly, and
that principal may be prepaid at any time because the underlying mortgage loans
generally may be prepaid at any time. As a result, if the Fund purchases these
assets at a premium, a faster-than-expected prepayment rate will reduce yield
to maturity, and a slower-than-expected prepayment rate will increase yield to
maturity. If the Fund purchases mortgage-backed securities at a discount,
faster-than-expected prepayments will increase, and slower-than-expected
prepayments will reduce, yield to maturity. Prepayments, and resulting amounts
available for reinvestment by the Fund, are likely to be greater during a
period of declining interest rates and, as a result, are likely to be
reinvested at lower interest rates. Accelerated prepayments on securities
purchased at a premium may result in a loss of principal if the premium has not
been fully amortized at the time of prepayment. These securities will decrease
in value as a result of increases in interest rates generally, and they are
likely to appreciate less than other fixed-income securities when interest
rates decline because of the risk of prepayments.

STRIPPED MORTGAGE-BACKED SECURITIES

Stripped mortgage-backed securities include interest-only and principal-only
classes of mortgage-backed securities ("IOs" and "POs"). The yield to maturity
on an IO or PO is extremely sensitive not only to changes in prevailing
interest rates but also to the rate of principal payments (including
prepayments) on the underlying assets. A rapid rate of principal prepayments
may have a measurably adverse effect on a Fund's yield to maturity to the
extent it invests in IOs. If the assets underlying the IOs experience greater
than anticipated prepayments of principal, the Fund may fail to recoup fully
its initial investment in these securities. Conversely, POs tend to decline in
value if prepayments are slower than anticipated.

The secondary market for stripped mortgage-backed securities may be more
volatile and less liquid than that for other mortgage-backed securities,
potentially limiting a Fund's ability to buy or sell those securities at any
particular time.

COLLATERALIZED MORTGAGE OBLIGATIONS

A collateralized mortgage obligation (CMO) is a security backed by a portfolio
of mortgages or mortgage-backed securities held under an indenture. CMOs may be

11
<PAGE>

issued either by U.S. Government instrumentalities or by non-governmental
entities. The issuer's obligation to make interest and principal payments is
secured by the underlying portfolio of mortgages or mortgage-backed securities.
CMOs are issued with a number of classes or series which have different
maturities and which may represent interests in some or all of the interest or
principal on the underlying collateral or a combination thereof. CMOs of
different classes are generally retired in sequence as the underlying mortgage
loans in the mortgage pool are repaid. In the event of sufficient early
prepayments on such mortgages, the class or series of CMOs first to mature
generally will be retired prior to its maturity. As with other mortgage-backed
securities, if a particular class or series of CMOs held by a Fund is retired
early, the Fund could lose any premium it paid when it acquired the investment,
and the Fund may have to reinvest the proceeds at a lower interest rate than
the retired CMO paid. Because of the early retirement feature, CMOs may be more
volatile than many other fixed-income investments.

ASSET-BACKED SECURITIES

Generally, the issuers of asset-backed bonds, notes, or pass-through
certificates are special purpose entities and do not have any significant
assets other than the receivables securing such obligations. In general, the
collateral supporting asset-backed securities is of shorter maturity than
mortgage loans. Instruments backed by pools of receivables are similar to
mortgage-backed securities in that they are subject to unscheduled prepayments
of principal prior to maturity. When the obligations are prepaid, the Fund
ordinarily will reinvest the prepaid amounts in securities the yields of which
reflect interest rates prevailing at the time. Therefore, a Fund's ability to
maintain a portfolio that includes high-yielding asset-backed securities will
be adversely affected to the extent that prepayments of principal must be
reinvested in securities that have lower yields than the prepaid obligations.
Moreover, prepayments of securities purchased at a premium could result in a
realized loss.

REAL ESTATE INVESTMENT TRUSTS

Real estate investment trusts (REITs) involve certain unique risks in addition
to those risks associated with investing in the real estate industry in general
(such as possible declines in the value of real estate, lack of availability of
mortgage funds, or extended vacancies of property). Equity REITs may be
affected by changes in the value of the underlying property owned by the REITs,
while mortgage REITs may be affected by the quality of any credit extended.
REITs are dependent upon management skills, are not diversified, and are
subject to heavy cash flow dependency, risks of default by borrowers, and self-
liquidation. REITs are also subject to the possibilities of failing to qualify
for tax-free pass-through of income
<PAGE>

under the Internal Revenue Code of 1986, as amended, and failing to maintain
their exemptions from registration under the Investment Company Act of 1940.

REITs may have limited financial resources, may trade less frequently and in a
limited volume, and may be subject to more abrupt or erratic price movements
than larger securities. A Fund's investment in a REIT may require the Fund to
accrue and distribute income not yet received or may result in the Fund making
distributions that constitute a return of capital to Fund shareholders for
federal income tax purposes. In addition, distributions by a Fund from REITs
will not qualify for the corporate dividends-received deduction.

RULE 144A SECURITIES

13
<PAGE>

MANAGEMENT

INVESTMENT ADVISER

The Board of Trustees of Loomis Sayles Investment Trust oversees the Fund and
supervises the Fund's investment adviser, Loomis, Sayles & Company, L.P.
("Loomis Sayles"), which is located at One Financial Center, Boston,
Massachusetts 02111.

Loomis Sayles was founded in 1926 and is one of the country's oldest and
largest investment firms. Loomis Sayles is responsible for making investment
decisions for the Fund and for managing the Fund's other affairs and business,
including providing executive and other personnel for the management of the
Fund.

As previously described in the "Expenses of the Fund" section, the Fund pays
Loomis Sayles a monthly investment advisory fee, also known as a management
fee, at the annual rate of .35% of its average net assets for these services.

Certain expenses incurred by the Fund would have been higher if not for Loomis
Sayles' contractual obligation to limit the Fund's expenses through February 1,
2002.

PORTFOLIO MANAGERS

Michael J. Millhouse, Executive Vice President and Director of Loomis Sayles
and Vice President of Loomis Sayles Investment Trust, has served as portfolio
manager of the Fund since 1999. He has been employed by Loomis Sayles for more
than five years. Craig Smith, Vice President of Loomis Sayles and of Loomis
Sayles Investment Trust, has served as portfolio manager since August 2000.
Prior to joining Loomis Sayles in 1997, Mr. Smith was employed at Donaldson,
Lufkin & Jenrette Securities Corporation.
<PAGE>

GENERAL INFORMATION

PRICING

The price of the Fund's shares is based on its net asset value ("NAV"). The NAV
per share of the Fund equals the total value of its assets, less its
liabilities, divided by the number of outstanding shares. Shares are valued as
of the close of regular trading on the New York Stock Exchange on each day the
Exchange is open for trading.

The Fund values its investments for which market quotations are readily
available at market value. The Fund values short-term investments that will
mature within 60 days at amortized cost, which approximates market value. The
Fund values all other investments and assets at fair value.

The Fund translates prices for its investments quoted in foreign currencies
into U.S. dollars at current exchange rates. As a result, changes in the value
of those currencies in relation to the U.S. dollar may affect a Fund's NAV.
Because foreign markets may be open at different times than the New York Stock
Exchange, the value of a Fund's shares may change on days when shareholders are
not able to buy or sell shares. If events materially affecting the values of a
Fund's foreign investments occur between the close of foreign markets and the
close of regular trading on the New York Stock Exchange, these foreign
investments may be valued at their fair value.

HOW TO PURCHASE SHARES

You can buy shares of the Fund by submitting a completed application form and
payment to State Street Bank and Trust Company at the following address:

State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
Attention: Loomis Sayles Investment Trust

For an application form, or if you have questions, you may call Loomis Sayles
at 888-226-9699.

The Fund sells its shares at the NAV next calculated after State Street Bank
and Trust Company receives a properly completed investment order. State Street
Bank and Trust Company generally must receive your properly completed order
before the close of regular trading on the New York Stock Exchange for your
shares to be bought or sold at the Fund's NAV on that day.

Shares of the Fund may be purchased by (1) cash, (2) exchanging securities
acceptable to Loomis Sayles, or (3) a combination of such methods. The exchange
of securities for shares of the Fund is subject to various restrictions, as
described in the Statement of Additional Information.

15
<PAGE>

All purchases made by check should be in U.S. dollars and made payable to State
Street Bank and Trust Company. The Fund will not accept checks made payable to
anyone other than State Street Bank and Trust Company (including checks made
payable to you) or starter checks. When you make an investment by check or by
periodic account investment, you will not be permitted to redeem that
investment until it has cleared or has been in your account for 15 days.

After your account has been established, you may send subsequent investments
directly to State Street Bank and Trust Company at the above address. Please
include either the account identification slip detached from your account
statement or a note containing the Fund's name, your account number and your
name, address, telephone number, and social security number.

You also may wire subsequent investments by using the following wire
instructions:

State Street Bank and Trust Company
Boston, MA 02101
ABA No. 011000028
DDA 4133-408-7
Mutual Funds f/b/o Loomis Sayles Investment Trust

Loomis Sayles Core Fixed Income Fund
(Your Name)
(Your account number)

Your bank may charge a fee for transmitting funds by wire.

The Fund may periodically close to new purchases of shares or refuse any order
to buy shares if the Fund determines that doing so would be in the best
interests of the Fund and its shareholders. In particular, the Fund will
ordinarily reject any purchase order that appears to be part of a pattern of
transactions intended to take advantage of short swings in the market.

The minimum initial investment for the Fund is $1,000,000. Each subsequent
investment must be at least $50,000. Loomis Sayles Investment Trust reserves
the right to waive these minimums in its sole discretion.

HOW TO REDEEM SHARES

You can redeem shares of the Fund any day the New York Stock Exchange is open.
If you are redeeming shares that you purchased within the past 15 days by
check, your redemption will be delayed until your payment for the shares
clears.

Your redemptions generally will be sent to you via first class mail on the
business day after your request is received in good order. Because large
redemptions are likely to require liquidation by the Fund of portfolio
holdings, payment for large redemptions may be delayed for up to seven days to
provide for orderly liquidation of such holdings. Under unusual circumstances,
the Fund may suspend redemptions or postpone payment for more than seven days.
Although most redemptions are
<PAGE>

made in cash, as described in the Statement of Additional Information, the Fund
reserves the right to redeem shares in kind.

You may make redemptions from the Fund by sending a written request that
includes the Fund's name, the exact name(s) in which the shares are registered,
your address, telephone number, account number, social security number, and the
number of shares or dollar amount to be redeemed to State Street Bank and Trust
Company at the following address:

State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
Attention: Loomis Sayles Investment Trust

If you have certificates for the shares you want to sell, you must include them
along with completed stock power forms.

All owners of the shares must sign the written request in the exact names in
which the shares are registered. The owners should indicate any special
capacity in which they are signing (such as trustee or custodian or on behalf
of a partnership, corporation, or other entity).

REDEMPTION BY THE FUND If you own fewer shares than the minimum set by the
Trustees, the Fund may redeem your shares and send you the proceeds.

DIVIDENDS AND DISTRIBUTIONS

The Fund pays any net investment income to shareholders as dividends annually.
The Fund also distributes all of its net realized capital gains after applying
any capital loss carryovers. Any capital gains distributions normally are made
annually in December, but may be made more frequently as deemed advisable by
the Trustees. The Trustees may change the frequency with which the Fund
declares or pays dividends.

You may choose to:
. Reinvest all distributions in additional shares.

. Have checks sent to the address of record for the amount of the distributions
or have the distributions transferred through Automated Clearing House
("ACH") to a bank of your choice.

If you do not select an option when you open your account, all distributions
will be reinvested.

TAX CONSEQUENCES

17
<PAGE>

Fund owned the investments that generated the capital gains, rather than by how
long you have owned your shares of the Fund. Distributions of short-term
capital gains, which result from the sale of securities that the Fund had held
for one year or less, are taxable as ordinary income. Properly designated
distributions of long-term capital gains, which result from the sale of
securities that the Fund had held for more than one year, are taxable as long-
term capital gains (taxable at a maximum rate of 20%).

Distributions of income and capital gains are taxable whether you received them
in cash or reinvested them in additional shares. If a dividend or distribution
is made shortly after you purchase shares of the Fund, while in effect a return
of capital to you, the dividend or distribution is taxable, as described above.
This is called "buying a dividend" and should be avoided, if possible.

The Fund's investment in foreign securities may be subject to foreign
withholding taxes, which would decrease the Fund's yield on those securities.
Shareholders may be entitled to claim a credit or deduction with respect to
foreign taxes. In addition, the Fund's investment in foreign securities may
increase or accelerate the Fund's recognition of income and may affect the
timing or amount of the Fund's distributions.

In addition to income tax on the Fund's distributions, any gain that results if
you sell or exchange your shares generally is subject to income tax. You should
consult your tax adviser for more information on how an investment in the Fund
affects your own tax situation, including possible foreign, state and local
taxes.

FINANCIAL HIGHLIGHTS

The financial highlights table below is intended to help you understand the
Fund's financial performance. Certain information reflects financial results
for a single Fund share. The total returns represent the rate that an investor
would have earned or lost on an investment in the Fund, assuming reinvestment
of all dividends and distributions.

This information has been audited by . The report of and
the Fund's financial statements are included in the Fund's annual report to
shareholders, which is available free of charge by calling 888-226-9699.
<PAGE>

LOOMIS SAYLES CORE FIXED INCOME FUND

<TABLE>
<CAPTION>
Fiscal Year Ended
---------------------------------------
Sept. 30, Sept. 30, Sept. 30, Dec. 31, April 24** to
2000 1999 1998* 1997 Dec. 31, 1996
--------------------------------------------------------------------------------
<S> <C> <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 gains
(losses) 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# (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 (%)*** (1.4) 7.8+ 9.2 5.3+
Net assets, end of
period (000) $22,584 $19,341 $16,110 $6,271
Ratio of operating
expenses to average net
assets (%)**** 0.65 0.65++ 0.65 0.65++
Ratio of net investment
income (loss) to
average net assets (%) 6.14 6.08++ 6.34 6.21++
Portfolio turnover rate
(%) 29 45+ 59 34+
Without giving effect to
the expense
limitations:
Ratio of expenses to
average net assets
would have been (%) 1.15 1.27++ 1.80 1.46++
Net investment income
(loss) per share would
have been ($) 0.56 0.45 0.32 0.35
</TABLE>

* For the nine months ended September 30, 1998. In 1998, the Fund's fiscal
year end changed from December 31 to September 30.
** Commencement of operations on April 24, 1996.
*** Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.

**** 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 to average net assets would have been higher.
+ Periods less than one year are not annualized.
++ Annualized for periods less than one year.
# Amount is less than $0.01 per share.

19
<PAGE>

APPENDIX A

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

STANDARD & POOR'S

AAA An obligation rated "AAA" has the highest rating assigned by Standard &
Poor's. The obligor's capacity to meet its financial commitment on the
obligation is extremely strong.

AA An obligation rated "AA" differs from the highest rated obligations only in
small degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.

A An obligation rated "A" is somewhat more susceptible to the adverse effects
of changes in circumstances and economic conditions than obligations in higher
rated categories. However, the obligor's capacity to meet its financial
commitment on the obligation is still strong.

BBB An obligation rated "BBB" exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely to lead
to a weakened capacity of the obligor to meet its financial commitment on the
obligation. Obligations rated "BB", "B", "CCC", "CC", and "C" are regarded as
having significant speculative characteristics. "BB" indicates the least degree
of speculation and "C" the highest. While such obligations will likely have
some quality and protective characteristics, these may be outweighed by large
uncertainties or major exposures to adverse conditions.

BB An obligation rated "BB" is less vulnerable to nonpayment that other
speculative issues. However, it faces major ongoing uncertainties or exposure
to adverse business, financial, or economic conditions which could lead to the
obligor's inadequate capacity to meet its financial commitment on the
obligation.

B An obligation rated "B" is more vulnerable to nonpayment than obligations
rated "BB", but the obligor currently has the capacity to meet its financial
commitment on the obligation. Adverse business, financial, or economic
conditions will likely impair the obligor's capacity or willingness to meet its
financial commitment on the obligation.

CCC An obligation rated "CCC" is currently vulnerable to nonpayment, and is
dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation. In the event of
adverse business, financial, or economic conditions, the obligor is not likely
to have the capacity to meet its financial commitment on the obligation.

CC An obligation rated "CC" is currently highly vulnerable to nonpayment.
<PAGE>

C A subordinated debt or preferred stock obligation rated "C" is currently
highly vulnerable to nonpayment. The "C" rating may be used to cover a
situation where a bankruptcy petition has been filed or similar action taken,
but payments on this
obligation are being continued. A "C" also will be assigned to a preferred
stock issue in arrears on dividends or sinking fund payments, but that is
currently paying.

D An obligation rated "D" is in payment default. The "D" rating category is
used when payments on an obligation are not made on the date due even if the
applicable grace period has not expired, unless Standard & Poor's believes that
such payments will be made during such grace period. The "D" rating also will
be used upon the filing of a bankruptcy petition or the taking of a similar
action if payments on an obligation are jeopardized.

R This symbol is attached to the ratings of instruments with significant
noncredit risks. It highlights risks to principal or volatility of expected
returns which are not addressed in the credit rating. Examples include:
obligations liked or indexed to equities, currencies, or commodities;
obligations exposed to severe prepayment risk--such as interest-only or
principal-only mortgage securities; and obligations with unusually risky
interest terms, such as inverse floaters.

N.R. This indicates that no rating has been requested, that there is
insufficient information on which to base a rating, or that Standard & Poor's
does not rate a particular obligation as a matter of policy.

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

21
<PAGE>

MOODY'S INVESTORS SERVICE, INC.

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

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

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

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

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

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

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

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

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

NOTE: Moody's applies numerical modifiers 1, 2, and 3 in each generic rating
classification from Aa through Caa. The modifier 1 indicates that the
obligation ranks in the higher end of its generic rating category; the modifier
2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the
lower end of that generic rating category.
<PAGE>

FOR MORE INFORMATION ABOUT THE FUND:

The Fund's statement of additional information (SAI) and annual and semi-annual
reports to shareholders provide additional information about the Fund. The SAI
and the auditor's report and financial statements included in the Fund's most
recent annual report to shareholders are incorporated by reference into this
Prospectus, which means that they are part of this Prospectus for legal
purposes.

In the Fund's annual report, you will find a discussion of the market
conditions and investment strategies that significantly affected the Fund's
performance during the last fiscal year.

You may get free copies of these materials, request other information about the
Fund and other Loomis Sayles Investment Trust Funds, or make shareholder
inquiries by contacting your financial adviser, by visiting the Loomis Sayles
web site at http://www.loomissayles.com, or by calling Loomis Sayles toll-free
at 888-226-9699.

You may review and copy information about the Fund, including the SAI, at the
Securities and Exchange Commission's Public Reference Room in Washington, DC.
You may call the Commission at 202-942-8090 for information about the operation
of the Public Reference Room. You also may access reports and other information
about the Fund on the EDGAR Database on the Commission's web site at
http://www.sec.gov. You may obtain these reports and other information about
the Fund, with payment of a duplicating fee, by writing the Public Reference
Section of the Commission, Washington, DC 20549-0102, or via e-mail
([email protected]). You may need to refer to the Fund's file number, which is
listed at the bottom of this page.

Loomis Sayles Investment Trust
One Financial Center
Boston, MA 02111
888-226-9699
www.loomissayles.com

File No. 811-8282

23
<PAGE>

LOOMIS SAYLES PROVIDENT FUND

[LOGO]

PROSPECTUS . FEBRUARY 1, 2001

Loomis, Sayles & Company, L.P., which has been an investment adviser since
1926, is the investment adviser of the Fund.

TABLE OF CONTENTS

<TABLE>
<S> <C>
RISK/RETURN SUMMARY 1
General Information 1
Loomis Sayles Provident Fund 2
Summary of Principal Risks 4

EXPENSES OF THE FUND 6

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS AND RISK CONSIDERATIONS 7

MANAGEMENT 11
Investment Adviser 11
Portfolio Manager 11

GENERAL INFORMATION 12
Pricing 12
How to Purchase Shares 12
How to Redeem Shares 13
Dividends and Distributions 14
Tax Consequences 14

FINANCIAL HIGHLIGHTS 15
</TABLE>
<PAGE>

RISK/RETURN SUMMARY

GENERAL INFORMATION

Loomis Sayles Investment Trust is a group of nine mutual funds. This Prospectus
describes the Loomis Sayles Provident Fund.

This Risk/Return Summary describes the Fund's objective, principal investment
strategies, principal risks, and performance. The summary for the Fund includes
a short discussion of some of the principal risks of investing in the Fund. A
further discussion of these and other principal risks begins after this
summary.

. how the Fund's average annual returns for one year, five years, and over the
life of the Fund compared to those of a broad-based securities market index.

The Fund's past performance, of course, does not necessarily indicate how it
will perform in the future.

1
<PAGE>

LOOMIS SAYLES PROVIDENT FUND

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

PRINCIPAL INVESTMENT STRATEGIES The Fund invests primarily in common stocks or
other equity securities. The Fund may invest in companies of any size.

In deciding which securities to buy and sell, Loomis Sayles seeks to identify
companies that Loomis Sayles believes will experience earnings growth rates
that are above average and better than consensus earnings estimates over the
next several years. In addition, Loomis Sayles may invest in areas that Loomis
Sayles believes involve revitalized industries, restructured companies, and
cyclically sensitive companies at the early stages of an economic advance.

The Fund also may invest in U.S. Government securities, when-issued securities,
convertible securities, zero coupon securities, real estate investment trusts,
and Rule 144A securities.

PRINCIPAL RISKS Among the principal risks of investing in the Fund are the
following:
. market risk (the risk that the value of the Fund's investments will fall as
a result of movements in financial markets generally);
. liquidity risk (the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them);

. interest rate risk (the risk that the value of the Fund's investments will
fall if interest rates rise); and

. management risk (the risk that Loomis Sayles' investment techniques will be
unsuccessful and may cause the Fund to incur losses).

BAR CHART The following bar chart shows year-to-year changes in the performance
of the Fund. Until May 27, 1999, the Fund's name was the Loomis Sayles Core
Growth Fund.

[CHART]

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on October 1, 1995. The Fund's shares were registered
under the Securities Act of 1933 on March 7, 1997.

The Fund's returns will vary. For example, during the period shown in the bar
chart, the Fund's best quarter was up % ( quarter, ), and the Fund's
worst quarter was down % ( quarter, ).
<PAGE>

PERFORMANCE TABLE. The following table compares the performance of the Fund to
the Standard & Poor's 500 Index, a commonly used benchmark of U.S. equity
securities. The index is unmanaged, has no operating costs, and is included in
the table to facilitate your comparison of the Fund's performance to a broad-
based market index.

AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 5 Inception
year years (10/1/95)*
----------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES PROVIDENT FUND % %
STANDARD & POOR'S 500 INDEX % %(/1/)
</TABLE>

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on October 1, 1995. The fund's shares were registered
under the Securities Act of 1933 on March 7, 1997.

The Fund's performance through December 31, 2000 benefited from Loomis Sayles'
agreement to limit the Fund's expenses.

(/1/)Since inception data for the index covers the period from the month-end
following the Fund's inception date through December 31, 2000.

3
<PAGE>

SUMMARY OF PRINCIPAL RISKS

MARKET RISK

This is the risk that the value of the Fund's investments will change as
financial markets fluctuate and that prices overall may decline. The value of a
company's stock may fall as a result of factors that directly relate to that
company, such as decisions made by its management or lower demand for the
company's products or services. A stock's value also may fall because of
factors affecting not just the company, but companies in its industry or in a
number of different industries, such as increases in production costs. The
value of a company's stock also may be affected by changes in financial market
conditions, such as changes in interest rates or currency exchange rates. In
addition, a company's stock generally pays dividends only after the company
makes required payments to holders of its bonds or other debt. For this reason,
the value of the stock will usually react more strongly than bonds and other
fixed income securities to actual or perceived changes in the company's
financial condition or prospects. Furthermore, to the extent the Fund invests
in fixed income securities, market risk tends to be greater when the Fund
invests in fixed income securities with longer maturities.

LEVERAGING RISK

If the Fund borrows money or otherwise leverages its portfolio, the value of an
investment in the Fund will be more volatile, and all other risks generally are
compounded. Since the Fund may create leverage by using investments such as
repurchase agreements, inverse floating rate instruments or derivatives, or by
borrowing money, the Fund faces this risk.

DERIVATIVES RISK

The Fund may use derivatives, which are financial contracts whose value depends
upon or is derived from the value of an underlying asset, reference rate, or
index. Examples of derivatives include options, futures, and swap transactions.
The Fund may use derivatives as part of a strategy designed to reduce other
risks ("hedging"). The Fund also may use derivatives to earn income, enhance
yield, and broaden Fund diversification. This use of derivatives entails
greater risk than using derivatives solely for hedging purposes. A Fund that
uses derivatives also faces additional risks, such as the credit risk of the
other party to a derivative contract, the risk of difficulties in pricing and
valuation, and the risk that changes in the value of a derivative may not
correlate perfectly with relevant assets, rates, or indices.
<PAGE>

LIQUIDITY RISK

MANAGEMENT RISK

INTEREST RATE RISK

This is the risk that changes in interest rates will affect the value of the
Fund's investments in fixed income securities, such as bonds, notes, and other
income producing securities. Fixed income securities are obligations of the
issuer to make payments of principal and/or interest on future dates. Increases
in interest rates may cause the value of the Fund's investments to decline.

The Fund also faces increased interest rate risk when it invests in fixed
income securities paying no current interest, such as zero coupon securities.

CREDIT RISK

5
<PAGE>

EXPENSES OF THE FUND

The following table presents the expenses that you would pay if you buy and
hold shares of the Fund.

The Fund does not impose a sales charge, a redemption fee, or an exchange fee.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

<TABLE>
<CAPTION>
Annual
Fund Fee
Total Waiver/
Management Distribution Other Operating Reimburse- Net
Fund Fees (12b-1) Fees Expenses Expenses ment* Expenses*
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Loomis Sayles Provident
Fund .50% none
----------------------------------------------------------------------------------------
</TABLE>

* Reflects Loomis Sayles' contractual obligation to
limit the Fund's expenses through February 1,
2002.

EXAMPLE

<TABLE>
<CAPTION>
10
Fund 1 year* 3 years* 5 years* years*
--------------------------------------------------------------
<S> <C> <C> <C> <C>
Loomis Sayles Provident Fund
--------------------------------------------------------------
</TABLE>

* Expenses shown for the Fund include the fee
waiver/reimbursement for the first year of each
period.
<PAGE>

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS AND RISK CONSIDERATIONS

TEMPORARY DEFENSIVE STRATEGIES

PORTFOLIO TURNOVER

COMMON STOCKS AND OTHER EQUITY SECURITIES

Common stocks and their equivalents, together called "equity securities," are
generally volatile and more risky than some other forms of investment. Equity
securities of companies with relatively small market capitalizations may be
more volatile than the securities of larger, more established companies and
than the broad equity market indices.

GROWTH STOCKS

Stocks of companies that Loomis Sayles believes have earnings that will
grow faster than the economy as a whole are known as growth stocks. The
Fund generally invests a significant portion of its assets in growth
stocks. Growth stocks typically trade at higher multiples of current
earnings than other stocks. As a result, the values of growth stocks may
be more sensitive to changes in current or expected earnings than the
values of other stocks. If Loomis Sayles' assessment of the prospects for
a company's earnings

7
<PAGE>

growth is wrong, or if its judgment of how other investors will value the
company's earnings growth is wrong, then the price of that company's
stock may fall or may not approach the value that Loomis Sayles has
placed on it.

VALUE STOCKS

Stocks of companies that are not expected to experience significant
earnings growth, but whose stocks Loomis Sayles believes are undervalued
compared to their true worth, are known as value stocks. In addition to
investing in growth stocks, the Fund may invest a significant portion of
its assets in value stocks. These companies may have experienced adverse
business developments or may be subject to special risks that have caused
their stocks to be out of favor. If Loomis Sayles' assessment of a
company's prospects is wrong, or if other investors do not eventually
recognize the value of the company, then the price of the company's stock
may fall or may not approach the value that Loomis Sayles has placed on
it.

FIXED INCOME SECURITIES

U.S. GOVERNMENT SECURITIES

Although U.S. Government securities generally do not involve the credit risks
associated with other types of fixed income securities, the market values of
U.S. Government securities fluctuate as interest rates change. Yields on U.S.
Government securities tend to be lower than those on corporate securities of
comparable maturities.
<PAGE>

ZERO COUPON SECURITIES

Zero coupon securities accrue interest at a specified rate, but do not pay
interest in cash on a current basis. A Fund that invests in zero coupon
securities is required to distribute the income on these securities to Fund
shareholders as the income accrues, even though the Fund is not receiving the
income in cash on a current basis. The Fund thus may have to sell other
investments to obtain cash to make income distributions at times when Loomis
Sayles would not otherwise deem it advisable to do so. The market value of zero
coupon securities often is more volatile than that of other fixed income
securities of comparable quality and maturity.

WHEN-ISSUED SECURITIES

9
<PAGE>

CONVERTIBLE SECURITIES

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

REAL ESTATE INVESTMENT TRUSTS

REITs may have limited financial resources, may trade less frequently and in a
limited volume, and may be subject to more abrupt or erratic price movements
than larger securities. The Fund's investment in a REIT may require the Fund to
accrue and distribute income not yet received or may result in the Fund making
distributions that constitute a return of capital to Fund shareholders for
federal income tax purposes. In addition, distributions by the Fund from REITs
will not qualify for the corporate dividends-received deduction.

RULE 144A SECURITIES

MANAGEMENT

INVESTMENT ADVISER

Certain expenses incurred by the Fund would have been higher if not for Loomis
Sayles' contractual obligation to limit the Fund's expenses through February 1,
2002.

PORTFOLIO MANAGER

Quentin P. Faulkner, Vice President of Loomis Sayles and of Loomis Sayles
Investment Trust, has served as portfolio manager of the Fund since its
inception in 1995. Mr. Faulkner has been employed by Loomis Sayles for more
than five years.

11
<PAGE>

GENERAL INFORMATION

PRICING

HOW TO PURCHASE SHARES

You can buy shares of the Fund by submitting a completed application form and
payment to State Street Bank and Trust Company at the following address:

State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
Attention: Loomis Sayles Investment Trust

For an application form, or if you have questions, you may call Loomis Sayles
at 888-226-9699.

statement or a note containing the Fund's name, your account number and your
name, address, telephone number, and social security number.

You also may wire subsequent investments by using the following wire
instructions:

State Street Bank and Trust Company
Boston, MA 02101
ABA No. 011000028
DDA 4133-408-7
Mutual Funds f/b/o Loomis Sayles Investment Trust

Loomis Sayles Provident Fund
(Your Name)
(Your account number)

Your bank may charge a fee for transmitting funds by wire.

The minimum initial investment for the Fund is $2,500,000. Each subsequent
investment must be at least $50,000. Loomis Sayles Investment Trust reserves
the right to waive these minimums in its sole discretion.

HOW TO REDEEM SHARES

State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
Attention: Loomis Sayles Investment Trust

If you have certificates for the shares you want to sell, you must include them
along with completed stock power forms.

13
<PAGE>

REDEMPTION BY THE FUND If you own fewer shares than the minimum set by the
Trustees, the Fund may redeem your shares and send you the proceeds.

DIVIDENDS AND DISTRIBUTIONS

You may choose to:
. Reinvest all distributions in additional shares.

. Have checks sent to the address of record for the amount of the distributions
or have the distributions transferred through Automated Clearing House (ACH)
to a bank account of your choice.

If you do not select an option when you open your account, all distributions
will be reinvested.

TAX CONSEQUENCES

Because the Fund is designed primarily for tax-exempt investors, such as
pension plans, endowments, and foundations, the Fund is not managed with a view
to reducing taxes. For federal income tax purposes, if the shareholder is
subject to tax, distributions of investment income from the Fund are taxable as
ordinary income. Taxes on distributions of capital gains are determined by how
long the Fund owned the investments that generated the capital gains, rather
than by how long you have owned your shares of the Fund. Distributions of
short-term capital gains, which result from the sale of securities that the
Fund had held for one year or less, are taxable as ordinary income. Properly
designated distributions of long-term capital gains, which result from the sale
of securities that the Fund had held for more than one year, are taxable as
long-term capital gains (taxable at a maximum rate of 20%).

FINANCIAL HIGHLIGHTS

The financial highlights table below is intended to help you understand the
Fund's financial performance. Certain information reflects financial results
for a single Fund share. The total returns represent the rate that you would
have earned or lost on an investment in the Fund, assuming reinvestment of all
dividends and distributions.

This information has been audited by . The report of and the
Fund's financial statements are included in the Fund's annual report to
shareholders, which is available free of charge by calling 888-226-9699.

15
<PAGE>

LOOMIS SAYLES PROVIDENT FUND

<TABLE>
<CAPTION>
Fiscal Year Ended
-------------------------------------------------
Sept. 30, Sept. 30, Sept. 30, Dec. 31, Dec. 31,
2000 1999 1998* 1997 1996
-------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 13.59 $ 12.26 $ 11.48 $ 10.02
--- ------- ------- ------- -------
Income from investment
operations--
Net investment income (loss) 0.04 0.10 0.10 0.10
Net realized and unrealized
gains (losses) on
investments 3.87 1.23 1.68 1.47
--- ------- ------- ------- -------
Total from investment
operations 3.91 1.33 1.78 1.57
--- ------- ------- ------- -------
Less distributions--
Dividends from net
investment income (0.10) 0.00 (0.10) (0.11)
Distributions from net
realized capital gains (3.94) 0.00 (0.90) 0.00
--- ------- ------- ------- -------
Total distributions (4.04) 0.00 (1.00) (0.11)
--- ------- ------- ------- -------
Net asset value, end of
period $ 13.46 $ 13.59 $ 12.26 $ 11.48
=== ======= ======= ======= =======
Total return (%)** 31.7 10.9+ 15.7 15.6
Net assets, end of period
(000) $21,886 $20,910 $38,544 $21,906
Ratio of operating expenses
to average net assets (%)*** 0.65 0.65++ 0.65 0.65
Ratio of net investment
income (loss) to average net
assets (%) 0.30 0.74++ 0.87 1.10
Portfolio turnover rate (%) 250 96+ 109 97
Without giving effect to the
expense limitations:
Ratio of expenses to average
net assets would have been
(%) 1.00 1.03++ 0.89 0.89
Net investment income (loss)
per share would have been
($) (0.01) 0.05 0.07 0.08
</TABLE>

* For the nine months ended September 30, 1998. In 1998, the Fund's fiscal
year end changed from December 31 to September 30.

** Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.

*** 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 to average net assets would have been higher.
+ Periods less than one year are not annualized.
++ Annualized for periods less than one year.
<PAGE>

FOR MORE INFORMATION ABOUT THE FUND:

In the Fund's annual report, you will find a discussion of the market
conditions and investment strategies that significantly affected the Fund's
performance during the last fiscal year.

Loomis Sayles Investment Trust
One Financial Center
Boston, MA 02111
888-226-9699
www.loomissayles.com

File No. 811-8282

17
<PAGE>

[LOGO APPEARS HERE]

LOOMIS SAYLES SMALL COMPANY GROWTH FUND

LOOMIS SAYLES SMALL COMPANY VALUE FUND

PROSPECTUS . FEBRUARY 1, 2001

Loomis, Sayles & Company, L.P., which has been an investment adviser since
1926, is the investment adviser of the Funds.

TABLE OF CONTENTS

<TABLE>
<S> <C>
RISK/RETURN SUMMARY 1
General Information 1
Loomis Sayles Small Company Growth Fund 2
Loomis Sayles Small Company Value Fund 4
Summary of Principal Risks 6

EXPENSES OF THE FUNDS 9

MORE INFORMATION ABOUT THE FUNDS' INVESTMENTS AND RISK CONSIDERATIONS 10

MANAGEMENT 16

Investment Adviser 16
Portfolio Managers 16

GENERAL INFORMATION 17
Pricing 17
How to Purchase Shares 17
How to Redeem Shares 18
Dividends and Distributions 19
Tax Consequences 19

FINANCIAL HIGHLIGHTS 20
</TABLE>
<PAGE>

RISK/RETURN SUMMARY

GENERAL INFORMATION

Loomis Sayles Investment Trust is a group of nine mutual funds. This Prospectus
describes the Loomis Sayles Small Company Growth Fund and the Loomis Sayles
Small Company Value Fund.

The following is a summary of certain key information about the Funds. You will
find additional information about each Fund, including a detailed description
of the risks of an investment in each Fund, after this summary.

This Risk/Return Summary describes the Funds' objectives, principal investment
strategies, principal risks, and performance. The summary for each Fund
includes a short discussion of some of the principal risks of investing in each
Fund. A further discussion of these and other principal risks begins after this
summary.

More detailed descriptions of the Funds, including some of the additional risks
associated with investing in the Funds, can be found further back in this
Prospectus. Please be sure to read this additional information before you
invest.

The Risk/Return Summary includes bar charts showing the Funds' annual returns
and tables showing the Funds' average annual returns. The bar charts and tables
provide an indication of the historical risk of an investment in each Fund by
showing:

. how the Fund's performance varied over the life of the Fund; and

. how the Fund's average annual returns for one year and over the life of the
Fund compared to those of a broad-based securities market index.

You can lose money by investing in a Fund. A Fund may not achieve its objective
and is not intended to be a complete investment program. An investment in a
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.

1
<PAGE>

LOOMIS SAYLES SMALL COMPANY GROWTH FUND

INVESTMENT OBJECTIVE The Fund's investment objective is long-term capital
growth from investments in common stocks or their equivalent.

PRINCIPAL INVESTMENT STRATEGIES The Fund invests primarily in equity securities
of companies with market capitalizations that fall within the capitalization
range of the Russell 2000 Index, an index that tracks stocks of 2,000 of the
smallest U.S. companies. The Fund may invest the rest of its assets in larger
companies.

In deciding which securities to buy and sell, Loomis Sayles seeks to identify
companies that Loomis Sayles believes have distinctive products, technologies,
or services, dynamic earnings growth, prospects for high levels of
profitability, and solid management. Loomis Sayles typically does not consider
current income when making buy/sell decisions.

The Fund may invest any portion of its assets in securities of Canadian issuers
and up to 20% of its assets in securities of foreign issuers, including
emerging markets securities. The Fund may engage in foreign currency hedging
transactions, options and futures transactions, and securities lending. The
Fund also may invest in real estate investment trusts and Rule 144A securities.

PRINCIPAL RISKS Among the principal risks of investing in the Fund are the
following:
. market risk (the risk that the value of the Fund's investments will fall as a
result of movements in financial markets generally);
. foreign risk (the risk that the value of the Fund's foreign investments will
fall as a result of foreign political, social, or economic changes);
. currency risk (the risk that the value of the Fund's investments will fall as
a result of changes in exchange rates);
. derivatives risk (the risk that the value of the Fund's derivative
investments will fall as a result of pricing difficulties or lack of
correlation with the underlying investment);
. liquidity risk (the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them); and
. management risk (the risk that Loomis Sayles' investment techniques will be
unsuccessful and may cause the Fund to incur losses).

<PAGE>

BAR CHART The following bar chart shows the calendar year performance for the
Fund.

(BAR CHART)

The Fund's returns will vary. For example, during the period shown in the bar
chart, the Fund's best quarter was up % ( quarter, 2000), and the Fund's
worst quarter was down % ( quarter, 2000).

PERFORMANCE TABLE The following table compares the performance of the Fund to
the , a commonly used benchmark of . The index is unmanaged,
has no operating costs, and is included to facilitate your comparison of the
Fund's performance to a broad-based market index.

AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
Inception
1 year (5/7/99)
----------------------------------------------------------
<S> <C> <C>
LOOMIS SAYLES SMALL COMPANY GROWTH FUND % %
INDEX % %/1/
</TABLE>

/1/Since inception data for the index covers the period from the month-end
following the Fund's inception date through December 31, 2000.

3
<PAGE>

LOOMIS SAYLES SMALL COMPANY VALUE FUND

INVESTMENT OBJECTIVE The Fund's investment objective is long-term capital
growth from investments in common stocks or their equivalent.

In deciding which securities to buy and sell, Loomis Sayles generally looks for
companies that Loomis Sayles believes are undervalued by the market in relation
to earnings, dividends, assets, and growth prospects. The Fund's investments
may include companies that have suffered significant business problems but that
Loomis Sayles believes have favorable prospects for recovery.

Loomis Sayles does not consider current income when making buy/sell decisions.
Loomis Sayles seeks to identify companies that Loomis Sayles believes have,
among other things, attractive price/earnings, price/book, and price/cash flow
ratios. Loomis Sayles generally seeks to find value by selecting individual
stocks that Loomis Sayles believes are attractive, rather than by attempting to
achieve investment growth by rotating the Fund's holdings among various sectors
of the economy.

The Fund may invest up to 20% of its assets in securities of foreign issuers,
including emerging markets securities. The Fund also may engage in foreign
currency hedging transactions and may invest in REITs, Rule 144A securities,
and, to the extent permitted by the Investment Company Act of 1940 investment
companies.

PRINCIPAL RISKS Among the principal risks of investing in the Fund are the
following:
. market risk (the risk that the value of the Fund's investments will fall as a
result of movements in financial markets generally);
. foreign risk (the risk that the value of the Fund's foreign investments will
fall as a result of foreign political, social, or economic changes);
. currency risk (the risk that the value of the Fund's investments will fall as
a result of changes in exchange rates);
. liquidity risk (the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them); and
. management risk (the risk that Loomis Sayles' investment techniques will be
unsuccessful and may cause the Fund to incur losses).

<PAGE>

BAR CHART The following bar chart shows the calendar year performance for the
Fund.

(CHART)

The Fund's returns will vary. For example, during the period shown in the bar
chart, the Fund's best quarter was up % ( quarter 2000), and the Fund's worst
quarter was down % ( quarter 2000).

PERFORMANCE TABLE The following table compares the performance of the Fund to
the Index a commonly used benchmark. The Index is unmanaged, has no
operating costs, and is included to facilitate your comparison of the Fund's
performance to a broad-based market index.

AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Inception
Year (6/30/99)
------------------------------------------------------
<S> <C> <C>
LOOMIS SAYLES SMALL COMPANY VALUE FUND % %
INDEX % %/1/
</TABLE>

/1/Since inception data for the index covers the period from the month-end
following the Fund's inception date through December 31, 2000.

5
<PAGE>

SUMMARY OF PRINCIPAL RISKS

The value of your investment in a Fund will fluctuate with changes in the
values of the Fund's investments. Many factors can affect those values. This
section describes the principal risks that may affect a Fund's portfolio as a
whole. Each Fund could be subject to additional principal risks because the
types of investments made by each Fund can change over time.

MARKET RISK

This is the risk that the value of a Fund's investments will change as
financial markets fluctuate and that prices overall may decline. The value of a
company's stock may fall as a result of factors that directly relate to that
company, such as decisions made by its management or lower demand for the
company's products or services. A stock's value also may fall because of
factors affecting not just the company, but companies in its industry or in a
number of different industries, such as increases in production costs. The
value of a company's stock also may be affected by changes in financial market
conditions, such as changes in interest rates or currency exchange rates. In
addition, a company's stock generally pays dividends only after the company
makes required payments to holders of its bonds or other debt. For this reason,
the value of the stock will usually react more strongly than bonds and other
fixed income securities to actual or perceived changes in the company's
financial condition or prospects.

Market risk generally is greater for Funds that invest substantially in small
and medium-sized companies, such as the Loomis Sayles Small Company Growth Fund
and the Loomis Sayles Small Company Value Fund, since these companies tend to
be more vulnerable to adverse developments than large companies.

FOREIGN RISK

CURRENCY RISK

This is the risk that fluctuations in exchange rates between the U.S. dollar
and foreign currencies may cause the value of a Fund's investments to decline.
Each of the Funds is subject to currency risk because it may invest in
securities denominated in, or receiving revenues in, foreign currencies.

LEVERAGING RISK

When a Fund borrows money or otherwise leverages its portfolio, the value of an
investment in the Fund will be more volatile, and all other risks generally are
compounded. Since the Funds may create leverage by using investments such as
repurchase agreements, inverse floating rate instruments or derivatives, or by
borrowing money, each Fund faces this risk.

DERIVATIVES RISK

Each Fund may use derivatives, which are financial contracts whose value
depends upon or is derived from the value of an underlying asset, reference
rate, or index. Examples of derivatives include options, futures, and swap
transactions. The Funds may use derivatives as part of a strategy designed to
reduce other risks ("hedging"). The Funds also may use derivatives to earn
income, enhance yield, and broaden Fund diversification. This use of
derivatives entails greater risk than using derivatives solely for hedging
purposes. Funds that use derivatives also face additional risks, such as the
credit risk of the other party to a derivative contract, the risk of
difficulties in pricing and valuation, and the risk that changes in the value
of a derivative may not correlate perfectly with relevant assets, rates, or
indices.

LIQUIDITY RISK

Liquidity risk exists when particular investments are difficult to purchase or
sell, possibly preventing a Fund from selling out of these illiquid securities
at an advantageous price. Derivatives and securities that involve substantial
credit risk tend to involve greater liquidity risk. In addition, liquidity risk
tends to increase to the extent a Fund invests in securities whose sale may be
restricted by law or by contract, such as Rule 144A securities.

MANAGEMENT RISK

Management risk is the risk that Loomis Sayles' investment techniques could
fail to achieve a Fund's objective and could cause your investment in a Fund to
lose value. Each Fund is subject to management risk because each Fund is
actively managed by Loomis Sayles. Loomis Sayles will apply its investment
techniques and risk analyses in making investment decisions for each Fund, but
there can be no guarantee that Loomis Sayles' decisions will produce the
desired results. For example, in some cases derivative and other investment
techniques may be

7
<PAGE>

unavailable or Loomis Sayles may determine not to use them, even under market
conditions where their use could have benefited a Fund.

CREDIT RISK

Funds that invest in lower rated fixed income securities ("junk bonds") are
subject to greater credit risk and market risk than Funds that invest in higher
quality fixed income securities. Lower rated fixed income securities are
considered predominantly speculative with respect to the ability of the issuer
to make timely principal and interest payments.
<PAGE>

EXPENSES OF THE FUNDS

The following table presents the expenses that you would pay if you buy and
hold shares of a Fund.

Neither of the Funds imposes a sales charge, a redemption fee, or an exchange
fee.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

<TABLE>
<CAPTION>
Total Annual Fee
Fund Waiver/
Management Distribution Other Operating Reimburse- Net
Fund Fees (12b-1) Fees Expenses Expenses ment** Expenses*
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Loomis Sayles Small
Company Growth Fund .75% none
---------------------------------------------------------------------------------------
Loomis Sayles Small
Company Value Fund .75% none
---------------------------------------------------------------------------------------
</TABLE>

* Reflects Loomis Sayles' contractual obligation to limit the Funds'
expenses through February 1, 2002.

EXAMPLE

The following example translates the "Total Annual Fund Operating Expenses"
column shown in the preceding table into dollar amounts. This example is
intended to help you compare the cost of investing in a Fund with the cost of
investing in other mutual funds.

This example makes certain assumptions. It assumes that you invest $10,000 in a
Fund for the time periods shown and then redeem all your shares at the end of
those periods. This example also assumes that your investment has a 5% return
each year and that the Fund's operating expenses remain the same. Please
remember that this example is hypothetical, so that your actual costs and
returns may be higher or lower.

<TABLE>
<CAPTION>
FUND 1 YEAR* 3 YEARS* 5 YEARS 10 YEARS
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Loomis Sayles Small Company Growth Fund $ $
--------------------------------------------------------------------------
Loomis Sayles Small Company Value Fund $ $
--------------------------------------------------------------------------
</TABLE>
* Expenses shown for the Funds include the fee waiver/reimbursement for the
first year of each period.

9
<PAGE>

MORE INFORMATION ABOUT THE FUNDS' INVESTMENTS AND
RISK CONSIDERATIONS

This section provides more information on each Fund's investments and risk
considerations. Except for each Fund's investment objective, and any investment
policies that are identified as "fundamental," all of the investment policies
and strategies of each Fund may be changed without a vote of the Fund's
shareholders.

Except where specifically noted elsewhere in this Prospectus, each of the Funds
may use any of the investment strategies described in this section. Some of
these investment strategies are principal investment strategies for the Funds,
while others are secondary investment strategies for the Funds.

TEMPORARY DEFENSIVE STRATEGIES

For temporary defensive purposes, each of the Funds may invest any portion of
its assets in cash or in any securities Loomis Sayles deems appropriate.
Although Loomis Sayles has the option to use these defensive strategies, Loomis
Sayles may choose not to use them for a variety of reasons, even in very
volatile market conditions. A Fund may miss certain investment opportunities if
it uses defensive strategies and thus may not achieve its investment objective.

PORTFOLIO TURNOVER

Portfolio turnover considerations will not limit Loomis Sayles' investment
discretion in managing the assets of each Fund. Each Fund anticipates that its
portfolio turnover rate will vary significantly from time to time depending on
the volatility of economic and market conditions. High portfolio turnover may
generate higher costs and higher levels of taxable gains, both of which may
hurt the performance of your investment.

COMMON STOCKS AND OTHER EQUITY SECURITIES

GROWTH STOCKS

Stocks of companies that Loomis Sayles believes have earnings that will
grow faster than the economy as a whole are known as growth stocks. The
Loomis Sayles Small Company Growth Fund generally invests a significant
portion of its assets in growth stocks. Growth stocks typically trade at
higher multiples of current earnings than other stocks. As a result, the
values of growth stocks may be more sensitive to changes in current or
expected earnings than the values of other stocks. If Loomis Sayles'
assessment of the prospects for a
<PAGE>

company's earnings growth is wrong, or if its judgment of how other
investors will value the company's earnings growth is wrong, then the price
of that company's stock may fall or may not approach the value that Loomis
Sayles has placed on it.

VALUE STOCKS

Stocks of companies that are not expected to experience significant
earnings growth, but whose stocks Loomis Sayles believes are undervalued
compared to their true worth, are known as value stocks. The Loomis Sayles
Small Company Value Fund generally invests a significant portion of its
assets in value stocks. These companies may have experienced adverse
business developments or may be subject to special risks that have caused
their stocks to be out of favor. If Loomis Sayles' assessment of a
company's prospects is wrong, or if other investors do not eventually
recognize the value of the company, then the price of the company's stock
may fall or may not approach the value that Loomis Sayles has placed on it.

WHEN-ISSUED SECURITIES

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

REAL ESTATE INVESTMENT TRUSTS

11
<PAGE>

REITs may have limited financial resources, may trade less frequently and in a
limited volume, and may be subject to more abrupt or erratic price movements
than larger securities.

A Fund's investment in a REIT may require the Fund to accrue and distribute
income not yet received or may result in the Fund making distributions that
constitute a return of capital to Fund shareholders for federal income tax
purposes. In addition, distributions by a Fund from REITs will not qualify for
the corporate dividends-received deduction.

RULE 144A SECURITIES

FOREIGN SECURITIES

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

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

foreign withholding taxes. Changes in the value relative to the U.S. dollar of
a foreign currency in which a Fund's holdings are denominated will result in a
change in the U.S. dollar value of a Fund's assets and the Fund's income
available for distribution.

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

In determining whether to invest assets of the Funds in securities of a
particular foreign issuer, Loomis Sayles will consider the likely effects of
foreign taxes on the net yield available to the Fund and its shareholders.
Compliance with foreign tax law may reduce a Fund's net income available for
distribution to shareholders.

FOREIGN CURRENCY HEDGING TRANSACTIONS

Foreign currency exchange transactions may allow a Fund to protect the value of
specific portfolio positions or to anticipate changes in relative values of
currencies in which current or future Fund portfolio holdings are denominated
or quoted. For example, to protect against a change in the foreign currency
exchange rate between the date on which a Fund contracts to purchase or sell a
security and the settlement date for the purchase or sale, or to "lock in" the
equivalent of a dividend or interest payment in another currency, a Fund might
purchase or sell a foreign currency on a spot (that is, cash) basis at the
prevailing spot rate. If conditions warrant, the Funds may also enter into
private contracts to purchase or sell foreign currencies at a future date
("forward contracts"). The Funds might also purchase exchange-listed and over-
the-counter call and put options on foreign currencies. Over-the-counter
currency options are generally less liquid than exchange-listed options and
will be treated as illiquid assets. The Funds may not be able to dispose of
over-the-counter options readily.

Foreign currency transactions involve costs and may result in losses.

OPTIONS AND FUTURES TRANSACTIONS

Options and futures transactions involve a Fund buying, selling, or writing
options (or buying or selling futures contracts) on securities, securities
indices, or currencies. Funds may engage in these transactions either to
enhance investment return or to hedge against changes in the value of other
assets that the Funds own or intend to acquire. Options and futures fall into
the broad category of financial instruments known as derivatives and involve
special risks. Use of options or

13
<PAGE>

futures for other than hedging purposes may be considered a speculative
activity, involving greater risks than are involved in hedging.

Options can generally be classified as either "call" or "put" options. There
are two parties to a typical options transaction: the "writer" and the "buyer."
A call option gives the buyer the right to buy a security or other asset (such
as an amount of currency or a futures contract) from, and a put option gives
the buyer the right to sell a security or other asset to, the option writer at
a specified price, on or before a specified date. The buyer of an option pays a
premium when purchasing the option, which reduces the return on the underlying
security or other asset if the option is exercised, and results in a loss if
the option expires unexercised. The writer of an option receives a premium from
writing an option, which may increase its return if the option expires or is
closed out at a profit. If a Fund as the writer of an option is unable to close
out an unexpired option, it must continue to hold the underlying security or
other asset until the option expires, to "cover" its obligation under the
option.

A futures contract creates an obligation by the seller to deliver and the buyer
to take delivery of the type of instrument or cash at the time and in the
amount specified in the contract. Although many futures contracts call for the
delivery (or acceptance) of the specified instrument, futures are usually
closed out before the settlement date through the purchase (or sale) of a
comparable contract. If the price of the sale of the futures contract by a Fund
is less than the price of the offsetting purchase, the Fund will realize a
loss.

The value of options purchased by a Fund and futures contracts held by a Fund
may fluctuate based on a variety of market and economic factors. In some cases,
the fluctuations may offset (or be offset by) changes in the value of
securities held in a Fund's portfolio. All transactions in options and futures
involve the possible risk of loss to the Fund of all or a significant part of
the value of its investment. In some cases, the risk of loss may exceed the
amount of the Fund's investment. When a Fund writes a call option or sells a
futures contract without holding the underlying securities, currencies, or
futures contracts, its potential loss is unlimited. The Fund will be required,
however, to set aside with its custodian bank liquid assets in amounts
sufficient at all times to satisfy its obligations under options and futures
contracts.

The successful use of options and futures will usually depend on Loomis Sayles'
ability to forecast stock market, currency, or other financial market movements
correctly. The Fund's ability to hedge against adverse changes in the value of
securities held in its portfolio through options and futures also depends on
the degree of correlation between changes in the value of futures or options
positions and changes in the values of the portfolio securities. The successful
use of futures and exchange-traded options also depends on the availability of
a liquid secondary market to enable a Fund to close its positions on a timely
basis. There can be no assurance that such a market will exist at any
particular time. In the case of options that are not traded on an exchange
("over-the-counter" options), a Fund is at risk that the other party to the
transaction will default on its obligations, or will not permit a Fund to
terminate the transaction before its scheduled maturity.
<PAGE>

The options and futures markets of foreign countries are small compared to
those of the United States and consequently are characterized in most cases by
less liquidity than U.S. markets. In addition, foreign markets may be subject
to less detailed reporting requirements and regulatory controls than U.S.
markets. Furthermore, investments in options in foreign markets are subject to
many of the same risks as other foreign investments. See "Foreign Securities"
above.

REPURCHASE AGREEMENTS

In a repurchase agreement, a Fund buys securities from a seller, usually a bank
or brokerage firm, with the understanding that the seller will repurchase the
securities at a higher price at a later date. Such transactions afford an
opportunity for a Fund to earn a return on available cash at minimal market
risk, although the Fund may be subject to various delays and risks of loss if
the seller is unable to meet its obligations to repurchase.

SECURITIES LENDING

Securities lending involves a Fund lending its portfolio securities to broker-
dealers or other parties under contracts calling for the deposit by the
borrower with the Fund's custodian of cash collateral equal to at least the
market value of the securities loaned, marked to market on a daily basis. The
Fund will continue to benefit from interest or dividends on the securities
loaned and will also receive interest through investment of the cash collateral
in short-term liquid investments. No loans will be made if, as a result, the
aggregate amount of such loans outstanding at any time would exceed 33 1/3% of
the Fund's assets (taken at current value). Any voting rights, or rights to
consent, relating to securities loaned pass to the borrower. However, if a
material event affecting the investment occurs, such loans will be called so
that the securities may be voted by the Fund. The Fund pays various fees in
connection with such loans, including shipping fees and reasonable custodial or
placement fees.

Securities loans must be fully collateralized at all times, but involve some
credit risk to the Fund if the borrower defaults on its obligation and the Fund
is delayed or prevented from recovering the collateral.

INVESTMENT COMPANIES

Investment companies, including companies such as iShares, "SPIDERS" and
"WEBs", are essentially pools of securities. Since the value of an investment
company is based on the value of the individual securities it holds, the value
of the Fund's investment in an investment company will fall if the value of the
investment company's underlying securities declines. As a shareholder in an
investment company, a Fund will bear its ratable share of the investment
company's expenses, including management fees, and will remain subject to the
investment company's advisory and administration fees with respect to the
assets so invested.

15
<PAGE>

MANAGEMENT

INVESTMENT ADVISER

The Board of Trustees of Loomis Sayles Investment Trust oversees each of the
Funds and supervises the Funds' investment adviser, Loomis, Sayles & Company,
L.P. ("Loomis Sayles"), which is located at One Financial Center, Boston,
Massachusetts 02111.

Loomis Sayles was founded in 1926 and is one of the country's oldest and
largest investment firms. Loomis Sayles is responsible for making investment
decisions for each Fund and for managing each Fund's other affairs and
business, including providing executive and other personnel for the management
of each Fund.

As previously described in the "Expenses of the Funds" section, each Fund pays
Loomis Sayles a monthly investment advisory fee, also known as a management
fee, for these services. During the past fiscal year, the Funds paid the fees
shown in the following table to Loomis Sayles. These fees are expressed as a
percentage of the Fund's average net assets:

<TABLE>
<CAPTION>
Fund Management Fee
---------------------------------------------------------
<S> <C>
Loomis Sayles Small Company Growth Fund .75%
---------------------------------------------------------
Loomis Sayles Small Company Value Fund .75%
</TABLE>

Certain expenses incurred by each Fund would have been higher if not for Loomis
Sayles' contractual obligation to limit the Funds' expenses through February 1,
2002.

PORTFOLIO MANAGERS

The following persons have had primary responsibility for the day-to-day
management of each indicated Fund's portfolio since the date stated below.
Except where noted, each of these portfolio managers has been employed by
Loomis Sayles for at least five years.

LOOMIS SAYLES SMALL COMPANY GROWTH FUND Christopher R. Ely, Philip C. Fine, and
David L. Smith, Vice Presidents of Loomis Sayles and of Loomis Sayles
Investment Trust, have served as portfolio managers of the Fund since its
inception in 1999. Prior to joining Loomis Sayles in 1996, Mr. Ely was senior
vice president and portfolio manager, and Mr. Fine and Mr. Smith were vice
presidents and portfolio managers, of Keystone Investment Management Company,
Inc.

LOOMIS SAYLES SMALL COMPANY VALUE FUND Joseph R. Gatz and Daniel G. Thelen,
Vice Presidents of Loomis Sayles and of Loomis Sayles Investment Trust, have
served as portfolio managers of the Fund since 2000. Prior to joining Loomis
Sayles in 1999, Mr. Gatz was a portfolio manager at Banc One Investment
Advisers Corporation and certain of its corporate predecessors since 1993.
<PAGE>

GENERAL INFORMATION

PRICING

The price of each Fund's shares is based on its net asset value ("NAV"). The
NAV per share of each Fund equals the total value of its assets, less its
liabilities, divided by the number of outstanding shares. Shares are valued as
of the close of regular trading on the New York Stock Exchange on each day the
Exchange is open for trading.

Each Fund values its investments for which market quotations are readily
available at market value. Each Fund values short-term investments that will
mature within 60 days at amortized cost, which approximates market value. Each
Fund values all other investments and assets at fair value.

Each Fund translates prices for its investments quoted in foreign currencies
into U.S. dollars at current exchange rates. As a result, changes in the value
of those currencies in relation to the U.S. dollar may affect a Fund's NAV.
Because foreign markets may be open at different times than the New York Stock
Exchange, the value of a Fund's shares may change on days when shareholders are
not able to buy or sell shares. If events materially affecting the values of a
Fund's foreign investments occur between the close of foreign markets and the
close of regular trading on the New York Stock Exchange, these foreign
investments may be valued at their fair value.

HOW TO PURCHASE SHARES

You can buy shares of each Fund by submitting a completed application form and
payment to State Street Bank and Trust Company at the following address:

State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
Attention: Loomis Sayles Investment Trust

For an application form, or if you have questions, you may call Loomis Sayles
at 888-226-9699.

Each Fund sells its shares at the NAV next calculated after State Street Bank
and Trust Company receives a properly completed investment order. State Street
Bank and Trust Company generally must receive your properly completed order
before the close of regular trading on the New York Stock Exchange for your
shares to be bought or sold at the Fund's NAV on that day.

Shares of each Fund may be purchased by (1) cash, (2) exchanging securities
acceptable to Loomis Sayles, or (3) a combination of such methods. The exchange
of securities for shares of the Fund is subject to various restrictions, as
described in the Statement of Additional Information.

All purchases made by check should be in U.S. dollars and made payable to State
Street Bank and Trust Company. The Funds will not accept checks made payable

17
<PAGE>

to anyone other than State Street Bank and Trust Company (including checks made
payable to you) or starter checks. When you make an investment by check or by
periodic account investment, you will not be permitted to redeem that
investment until it has cleared or has been in your account for 15 days.

You also may wire subsequent investments by using the following wire
instructions:

State Street Bank and Trust Company
Boston, MA 02101
ABA No. 011000028
DDA 4133-408-7
Mutual Funds f/b/o Loomis Sayles Investment Trust
(Name of Fund)
(Your Name)
(Your account number)

Your bank may charge a fee for transmitting funds by wire.

A Fund may periodically close to new purchases of shares or refuse any order to
buy shares if the Fund determines that doing so would be in the best interests
of the Fund and its shareholders. In particular, the Fund will ordinarily
reject any purchase order that appears to be part of a pattern of transactions
intended to take advantage of short-term swings in the market.

The minimum initial investment for each Fund is $3,000,000. Loomis Sayles
reserves the right to waive this minimum in its sole discretion.

Each subsequent investment must be at least $50,000.

HOW TO REDEEM SHARES

You can redeem shares of each Fund any day the New York Stock Exchange is open.
If you are redeeming shares that you purchased within the past 15 days by
check, your redemption will be delayed until your payment for the shares
clears.

Your redemptions generally will be sent to you via first class mail on the
business day after your request is received. Because large redemptions are
likely to require liquidation by the Fund of portfolio holdings, payment for
large redemptions may be delayed for up to seven days to provide for orderly
liquidation of such holdings. Under unusual circumstances, the Funds may
suspend redemptions or postpone payment for more than seven days. Although most
redemptions are made in cash, as described in the Statement of Additional
Information, the Funds reserve the right to redeem shares in kind.
<PAGE>

You may make redemptions from each Fund by sending a written request that
includes the name of the Fund, the exact name(s) in which the shares are
registered, your address, telephone number, account number, social security
number, and the number of shares or dollar amount to be redeemed to State
Street Bank and Trust Company at the following address:

State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
Attention: Loomis Sayles Investment Trust

If you have certificates for the shares you want to sell, you must include them
along with completed stock power forms.

REDEMPTION BY THE FUNDS If you own fewer shares than the minimum set by the
Trustees, each Fund may redeem your shares and send you the proceeds.

DIVIDENDS AND DISTRIBUTIONS

The Funds pay any net investment income to shareholders as dividends annually.
The Funds also distribute all of their net realized capital gains after
applying any capital loss carryovers. Any capital gains distributions normally
are made annually in December, but may be made more frequently as deemed
advisable by the Trustees. The Trustees may change the frequency with which the
Fund declares or pays dividends.

You may choose to:
. Reinvest all distributions in additional shares.

. Have checks sent to the address of record for the amount of the distributions
or have the distributions transferred through Automated Clearing House
("ACH") to a bank of your choice.

If you do not select an option when you open your account, all distributions
will be reinvested.

TAX CONSEQUENCES

19
<PAGE>

had held for one year or less, are taxable as ordinary income. Properly
designated distributions of long-term capital gains, which result from the sale
of securities that a Fund had held for more than one year, are taxable as long-
term capital gains (taxable at a maximum rate of up to 20%).

Distributions of income and capital gains are taxable whether you received them
in cash or reinvested them in additional shares. If a dividend or distribution
is made shortly after you purchase shares of a Fund, while in effect a return
of capital to you, the dividend or distribution is taxable, as described above.
This is called "buying a dividend" and should be avoided, if possible.

A Fund's investment in foreign securities may be subject to foreign withholding
taxes, which would decrease a Fund's yield on those securities. Shareholders
may be entitled to claim a credit or deduction with respect to foreign taxes.
In addition, a Fund's investment in foreign securities may increase or
accelerate a Fund's recognition of income and may affect the timing or amount
of a Fund's distributions.

In addition to income tax on a Fund's distributions, any gain that results if
you sell or exchange your shares generally is subject to income tax. You should
consult your tax adviser for more information on how an investment in a Fund
affects your own tax situation, including possible foreign, state and local
taxes.

FINANCIAL HIGHLIGHTS

The financial highlights tables below are intended to help you understand each
Fund's financial performance. Certain information reflects financial results
for a single Fund share. The total returns represent the rate that you would
have earned or lost on an investment in each Fund, assuming reinvestment of all
dividends and distributions.

This information has been audited by. The report of each Fund's financial
statements are included in the Funds' annual reports to shareholders, which are
available free of charge by calling 888-226-9699.
<PAGE>

LOOMIS SAYLES SMALL COMPANY GROWTH FUND

<TABLE>
<CAPTION>
Fiscal Year
Ended May 7* to
Sept. 30, 2000 Sept. 30, 1999
-------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ $ 10.00
---- -------
Income from investment operations--
Net investment income (loss) (0.01)
Net realized and unrealized gains (losses) on
investments 1.68
---- -------
Total from investment operations 1.67
---- -------
Less distributions--
Dividends from net investment income 0.00
Distributions from net realized capital gains 0.00
---- -------
Total distributions 0.00
---- -------
Net asset value, end of period $ $ 11.67
==== =======
Total return (%)** 16.7+
Net assets, end of period (000) $ $17,674
Ratio of operating expenses to average net
assets (%)*** 0.90++
Ratio of net investment income (loss) to average
net assets (%) (0.51)++
Portfolio turnover rate (%) 56+
Without giving effect to the expense
limitations:
Ratio of expenses to average net assets would
have been (%) 2.17++
Net investment income (loss) per share would
have been ($) (0.04)
</TABLE>

* Commencement of operations on May 7, 1999.
** Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.

*** 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 to average net assets would have been higher.
+ Periods less than one year are not annualized.
++ Annualized for periods less than one year.

21
<PAGE>

LOOMIS SAYLES SMALL COMPANY VALUE FUND

<TABLE>
<CAPTION>
Fiscal Year
Ended June 30* to
Sept. 30, 2000 Sept. 30, 1999
-------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ $ 10.00
---- -------
Income from investment operations--
Net investment income (loss) 0.02
Net realized and unrealized gains (losses) on
investments (0.62)
---- -------
Total from investment operations (0.60)
---- -------
Less distributions--
Dividends from net investment income 0.00
Distributions from net realized capital gains 0.00
---- -------
Total distributions 0.00
---- -------
Net asset value, end of period $ $ 9.40
==== =======
Total return (%)** (6.0)+
Net assets, end of period (000) $ $37,891
Ratio of operating expenses to average net asset
(%)*** 0.90++
Ratio of net investment income (loss) to average
net assets (%) 0.82++
Portfolio turnover rate (%) 36+
Without giving effect to the expense
limitations:
Ratio of expenses to average net assets would
have been (%) 1.31++
Net investment income (loss) per share would
have been ($) 0.01
</TABLE>

* Commencement of operations on June 30, 1999.
** Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.

*** 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 to average net assets would have been higher.
+ Periods less than one year not annualized.
++ Annualized for periods less than one tyear.
<PAGE>

FOR MORE INFORMATION ABOUT THE FUNDS:

The Funds' statement of additional information (SAI) and annual and semi-annual
reports to shareholders provide additional information about the Funds. The SAI
and the auditor's report and financial statements included in the Funds' most
recent annual report to shareholders are incorporated by reference into this
Prospectus, which means that they are part of this Prospectus for legal
purposes.

In the Funds' annual report, you will find a discussion of the market
conditions and investment strategies that significantly affected the Funds'
performance during the last fiscal year.

You may get free copies of these materials, request other information about the
Funds and other Loomis Sayles Investment Trust Funds, or make shareholder
inquiries by contacting your financial adviser, by visiting the Loomis Sayles
web site at http://www.loomissayles.com, or by calling Loomis Sayles toll-free
at 888-226-9699.

You may review and copy information about the Funds, including the SAI, at the
Securities and Exchange Commission's Public Reference Room in Washington, DC.
You may call the Commission at 202-942-8090 for information about the operation
of the Public Reference Room. You also may access reports and other information
about the Funds on the EDGAR Database on the Commission's web site at
http://www.sec.gov. You may obtain these reports and other information about
the Funds, with payment of a duplicating fee, by writing the Public Reference
Section of the Commission, Washington, DC 20549-0102, or via e-mail
([email protected]). You may need to refer to the Funds' file number, which is
listed at the bottom of this page.

Loomis Sayles Investment Trust
One Financial Center
Boston, MA 02111
888-226-9699
www.loomissayles.com

File No. 811-8282

23
<PAGE>

[LOGO]

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

prospectus . february 1, 2001

Loomis, Sayles & Company, L.P., which has been an investment adviser since
1926, is the investment adviser of the Funds.

TABLE OF CONTENTS

<TABLE>
<S> <C>
RISK/RETURN SUMMARY 1
General Information 1
Loomis Sayles Fixed Income Fund 2
Loomis Sayles High Yield Fixed Income Fund 4
Loomis Sayles Intermediate Duration Fixed Income Fund 6
Loomis Sayles Investment Grade Fixed Income Fund 8
Summary of Principal Risks 10

EXPENSES OF THE FUNDS 13

MORE INFORMATION ABOUT THE FUNDS' INVESTMENTS AND RISK CONSIDERATIONS 14

MANAGEMENT 21
Investment Adviser 21
Portfolio Managers 21

GENERAL INFORMATION 22
Pricing 22
How to Purchase Shares 22
How to Redeem Shares 23
Dividends and Distributions 24
Tax Consequences 24

FINANCIAL HIGHLIGHTS 25

APPENDIX A 30
</TABLE>
<PAGE>

RISK/RETURN SUMMARY

GENERAL INFORMATION

Loomis Sayles Investment Trust is a group of nine mutual funds. This Prospectus
describes the Loomis Sayles Fixed Income Fund, the Loomis Sayles High Yield
Fixed Income Fund, the Loomis Sayles Intermediate Duration Fixed Income Fund,
and the Loomis Sayles Investment Grade Fixed Income Fund.

The Risk/Return Summary includes bar charts showing each Fund's annual returns
and tables showing each Fund's average annual returns. The bar charts and
tables provide an indication of the historical risk of an investment in each
Fund by showing:
. how the Fund's performance varied from year to year over the life of the
Fund; and

. how the Fund's average annual returns for one year, five years (if
applicable), and over the life of the Fund compared to those of a broad-based
securities market index.

A Fund's past performance, of course, does not necessarily indicate how it will
perform in the future.

1
<PAGE>

LOOMIS SAYLES FIXED INCOME FUND

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

PRINCIPAL INVESTMENT STRATEGIES The Fund invests primarily in fixed income
securities. The Fund may invest up to 35% of its assets in lower rated fixed
income securities ("junk bonds") and up to 20% of its assets in preferred
stocks. The Fund may invest in fixed income securities of any maturity.

In deciding which securities to buy and sell, Loomis Sayles will consider,
among other things, the financial strength of the issuer of the security,
current interest rates, Loomis Sayles' expectations regarding general trends in
interest rates, and comparisons of the level of risk associated with particular
investments with Loomis Sayles' expectations concerning the potential return of
those investments.

Loomis Sayles generally prefers securities that are protected against calls
(early redemption by the issuer).

The Fund may invest any portion of its assets in securities of Canadian issuers
and up to 20% of its assets in other foreign securities, including emerging
markets securities.

The fixed income securities in which the Fund may invest include corporate
securities, U.S. Government securities, zero coupon securities, mortgage-backed
securities, stripped mortgage-backed securities, collateralized mortgage
obligations, when-issued securities, real estate investment trusts, Rule 144A
securities, and convertible securities.

PRINCIPAL RISKS Among the principal risks of investing in the Fund are the
following:
. interest rate risk (the risk that the value of the Fund's investments will
fall if interest rates rise);
. credit risk (the risk that companies in which the Fund invests, or with which
it does business, will fail financially, and be unwilling or unable to meet
their obligations to the Fund);
. market risk (the risk that the value of the Fund's investments will fall as a
result of movements in financial markets generally); and
<PAGE>

. management risk (the risk that Loomis Sayles' investment techniques will be
unsuccessful and may cause the Fund to incur losses).

BAR CHART The following bar chart shows year-to-year changes in the performance
of the Fund.

[CHART TO COME]

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on January 17, 1995. The Fund's shares were registered
under the Securities Act of 1933 on March 7, 1997.

The Fund's returns will vary. For example, during the period shown in the bar
chart, the Fund's best quarter was up % ( quarter, ), and the Fund's
worst quarter was down % ( quarter, ).

PERFORMANCE TABLE The following table compares the performance of the Fund to
the Lehman Brothers Government/Corporate Bond Index, an index that tracks the
performance of a broad range of government and corporate fixed income
securities. The index is unmanaged, has no operating costs, and is included in
the table to facilitate your comparison of the Fund's performance to a broad-
based market index.

AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
<TABLE>
--------------------------------------------------------------------------
<CAPTION>
Since
Inception
1 Year 5 Years (1/17/95)*
--------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES FIXED INCOME FUND % %
LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX % %/1/
</TABLE>

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on January 17, 1995. The Fund's shares were registered
under the Securities Act of 1933 on March 7, 1997.

The Fund's performance through December 31, 2000 benefited from Loomis
Sayles' agreement to limit the Fund's expenses.

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

/1/Since inception data for the index covers the period from the month-end
following the Fund's inception date through December 31, 2000.

3
<PAGE>

LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND

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

PRINCIPAL INVESTMENT STRATEGIES The Fund invests primarily in lower rated fixed
income securities ("junk bonds"), although it may invest up to 20% of its
assets in preferred stocks and up to 10% of its assets in common stocks. The
Fund may invest in fixed income securities of any maturity.

Loomis Sayles generally prefers securities that are protected against calls
(early redemption by the issuer).

The Fund may invest any portion of its assets in Canadian securities and up to
50% of its assets in other foreign securities, including emerging markets
securities.

The fixed income securities in which the Fund may invest include corporate
securities, U.S. Government securities, zero coupon securities, mortgage-backed
securities, collateralized mortgage obligations, when-issued securities, real
estate investment trusts, Rule 144A securities, and convertible securities.

PRINCIPAL RISKS Among the principal risks of investing in the Fund are the
following:
. credit risk (the risk that companies in which the Fund invests, or with which
it does business, will fail financially, and be unwilling or unable to meet
their obligations to the Fund);
. interest rate risk (the risk that the value of the Fund's investments will
fall if interest rates rise);
. market risk (the risk that the value of the Fund's investments will fall as a
result of movements in financial markets generally);
. foreign risk (the risk that the value of the Fund's foreign investments will
fall as a result of foreign political, social, or economic changes);
. currency risk (the risk that the value of the Fund's investments will fall as
a result of changes in exchange rates);
<PAGE>

. derivatives risk (the risk that the value of the Fund's derivative
investments will fall as a result of pricing difficulties or lack of
correlation with the underlying investment);
. liquidity risk (the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them); and
. management risk (the risk that Loomis Sayles' investment techniques will be
unsuccessful and may cause the Fund to incur losses).

Because the Fund invests in lower rated fixed income securities, your
investment faces significantly more risk than other types of fixed income
funds. For example, the Fund's returns may be more volatile than a fund that
invests primarily in investment grade fixed income securities, such as the
Loomis Sayles Investment Grade Fixed Income Fund.

BAR CHART The following bar chart shows year-to-year changes in the performance
of the Fund.

[CHART TO COME]

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on June 5, 1996. The Fund's shares were registered under
the Securities Act of 1933 on March 7, 1997.

The Fund's returns will vary. For example, during the period shown in the bar
chart, the Fund's best quarter was up % ( quarter, ), and the Fund's
worst quarter was down % ( quarter, ).

PERFORMANCE TABLE The following table compares the performance of the Fund to
the Merrill Lynch High Yield Master Index, an index that tracks the performance
of lower-rated fixed income securities. The index is unmanaged, has no
operating costs, and is included in the table to facilitate your comparison of
the Fund's performance to a broad-based market index.

AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
<TABLE>
------------------------------------------------------------
<CAPTION>
Since
Inception
1 Year (6/5/96)*
------------------------------------------------------------
<S> <C> <C>
LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND % %
MERRILL LYNCH HIGH YIELD MASTER INDEX % %/1/
</TABLE>

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on June 5, 1996. The Fund's shares were registered under
the Securities Act of 1933 on March 7, 1997.

The Fund's performance through December 31, 2000 benefited from Loomis
Sayles' agreement to limit the Fund's expenses.

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

/1/Since inception data for the index covers the period from the month-end
following the Fund's inception date through December 31, 2000.

5
<PAGE>

LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND

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

PRINCIPAL INVESTMENT STRATEGIES The Fund invests predominantly in investment
grade fixed income securities. The Fund's weighted average duration generally
is two to five years.

The Fund will purchase only investment grade fixed income securities. In the
event that the credit rating of a security held by the Fund falls below
investment grade (or, in the case of an unrated security, Loomis Sayles
determines that the quality of such security has fallen below investment
grade), the Fund will not be obligated to dispose of the security and may
continue to hold the security if Loomis Sayles believes the investment is
appropriate.

In deciding which securities to buy and sell, Loomis Sayles will consider,
among other things, the financial strength of the issuer, current interest
rates, and comparisons of the level of risk associated with particular
investments with Loomis Sayles' expectations concerning the potential return of
those investments.

Loomis Sayles generally prefers securities that are protected against calls
(early redemption by the issuer).

The Fund may invest any portion of its assets in Canadian securities and up to
20% of its assets in other foreign securities, including emerging markets
securities.

The fixed income securities in which the Fund may invest include corporate
securities, U.S. Government securities, zero coupon securities, mortgage-backed
securities, asset-backed securities, real estate investment trusts, Rule 144A
securities, and convertible securities.

. market risk (the risk that the value of the Fund's investments will fall as a
result of movements in financial markets generally); and
. management risk (the risk that Loomis Sayles' investment techniques will be
unsuccessful and may cause the Fund to incur losses).

Interest rate risk generally is greater for funds that invest in fixed income
securities with relatively long durations, such as this Fund, than for funds
that invest in fixed income securities with shorter durations.

BAR CHART The following bar chart shows the annual performance of the Fund.

[CHART TO COME]

The Fund's returns will vary. For example, during the period shown in the bar
chart, the Fund's best quarter was up % ( quarter, ), and the Fund's worst
quarter performance was % ( quarter, ).

PERFORMANCE TABLE The following table compares the performance of the Fund to
the Lehman Brothers Government/Corporate Intermediate Bond Index, an index that
tracks the performance of government and corporate fixed income securities with
an average maturity of one to ten years. The index is unmanaged, has no
operating costs, and is included in the table to facilitate your comparison of
the Fund's performance to a broad-based market index.

AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
<TABLE>
------------------------------------------------------------------------------
<CAPTION>
Since
Inception
1 Year (1/28/98)
------------------------------------------------------------------------------
<S> <C> <C>
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND % %
LEHMAN BROTHERS GOVERNMENT/CORPORATE INTERMEDIATE BOND INDEX % %/1/
</TABLE>

The Fund's performance through December 31, 2000 benefited from Loomis Sayles'
agreement to limit the Fund's expenses.

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

/1/Since inception data for the index covers the period from the month-end
following the Fund's inception date through December 31, 2000.

7
<PAGE>

LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND

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

PRINCIPAL INVESTMENT STRATEGIES The Fund invests primarily in investment grade
fixed income securities, although it may invest up to 10% of its assets in
lower rated fixed income securities ("junk bonds") and up to 20% of its assets
in preferred stocks. The Fund may invest in fixed income securities of any
maturity.

In deciding which securities to buy and sell, the Fund will consider, among
other things, the financial strength of the issuer, current interest rates,
Loomis Sayles' expectations regarding future changes in interest rates, and
comparisons of the level of risk associated with particular investments with
Loomis Sayles' expectations concerning the potential return of those
investments.

Loomis Sayles generally prefers securities that are protected against calls
(early redemption by the issuer).

The Fund may invest any portion of its assets in securities of Canadian issuers
and up to 20% of its assets in securities of other foreign issuers, including
emerging markets securities.

PRINCIPAL RISKS Among the principal risks of investing in the Fund are the
following:
. interest rate risk (the risk that the value of the Fund's investments will
fall if interest rates rise);
. market risk (the risk that the value of the Fund's investments will fall as a
result of movements in financial markets generally); and
. management risk (the risk that Loomis Sayles' investment techniques will be
unsuccessful and may cause the Fund to incur losses).

Interest rate risk generally is greater for funds, such as this Fund, that
invest in fixed income securities with relatively long maturities than for
funds that invest in fixed income securities with shorter maturities.
<PAGE>

BAR CHART The following bar chart shows year-to-year changes in the performance
of the Fund.

[CHART]

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on July 1, 1994. The Fund's shares were registered under
the Securities Act of 1933 on March 7, 1997.

The Fund's returns will vary. For example, during the period shown in the bar
chart, the Fund's best quarter was up % ( quarter, ), and the Fund's
worst quarter was down % (quarter, ).

AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
<TABLE>
--------------------------------------------------------------------------
<CAPTION>
Since
Inception
1 year 5 years (7/1/94)*
--------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND % % %
LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX % % %/1/
</TABLE>

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on July 1, 1994. The Fund's shares were registered under
the Securities Act of 1933 on March 7, 1997.

The Fund's performance through December 31, 2000 benefited from Loomis
Sayles' agreement to limit the Fund's expenses.

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

/1/Since inception data for the index covers the period from month-end
following the Fund's inception date through December 31, 2000.

9
<PAGE>

SUMMARY OF PRINCIPAL RISKS

INTEREST RATE RISK

This is the risk that changes in interest rates will affect the value of a
Fund's investments in fixed income securities, such as bonds, notes, asset-
backed securities, and other income producing securities. Fixed income
securities are obligations of the issuer to make payments of principal and/or
interest on future dates. Interest rate risk affects each of the Funds.
Increases in interest rates may cause the value of a Fund's investments to
decline.

Even funds that generally invest a significant portion of their assets in high
quality fixed income securities, such as the Loomis Sayles Investment Grade
Fixed Income Fund, are subject to interest rate risk. Interest rate risk is
greater for funds that generally invest a significant portion of their assets
in lower rated fixed income securities ("junk bonds") or comparable unrated
securities, such as the Loomis Sayles High Yield Fixed Income Fund.

Interest rate risk also is greater for funds that generally invest in fixed
income securities with longer maturities, or durations such as the Loomis
Sayles Intermediate Duration Fixed Income Fund and the Loomis Sayles Investment
Grade Fixed Income Fund, than for funds that invest in fixed income securities
with shorter maturities or durations.

Interest rate risk is compounded for funds that invest a significant portion of
their assets in mortgage-related or other asset-backed securities. Each of the
Funds may invest in mortgage-related securities and in asset-backed securities.
The value of mortgage-related securities and asset-backed securities generally
is more sensitive to changes in interest rates than other types of fixed income
securities. When interest rates rise, the maturities of mortgage-related and
asset-backed securities tend to lengthen, and the value of the securities
decreases more significantly. In addition, these types of securities are
subject to prepayment when interest rates fall, which generally results in
lower returns because funds that hold these types of securities must reinvest
assets previously invested in these types of securities in fixed income
securities with lower interest rates.

The Funds also face increased interest rate risk when they invest in fixed
income securities paying no current interest, such as zero coupon securities,
principal-only securities, interest-only securities, and fixed income
securities paying non-cash interest in the form of other fixed income
securities.
<PAGE>

CREDIT RISK

This is the risk that the issuer or the guarantor of a fixed income security,
or the counterparty to an over-the-counter transaction, will be unable or
unwilling to make timely payments of interest or principal or to otherwise
honor its obligations. The degree of risk for a particular security may be
reflected in its credit rating. Credit risk is greater for funds that typically
invest a significant portion of their assets in lower rated fixed income
securities ("junk bonds"), such as the Loomis Sayles High Yield Fixed Income
Fund. Lower rated fixed income securities generally have speculative elements
or are predominately speculative credit risks.

Funds, such as the Loomis Sayles High Yield Fixed Income Fund, that invest in
fixed income securities issued in connection with corporate restructurings by
highly leveraged issuers or in fixed income securities that are not current in
the payment of interest or principal (i.e., in default) may be subject to
greater credit risk because of these investments.

Funds that invest a significant portion of their assets in foreign securities
also are subject to increased credit risk because of the difficulties of
requiring foreign entities to honor their contractual commitments and because a
number of foreign governments and other issuers are already in default.

MARKET RISK

This is the risk that the value of a Fund's investments will change as the
markets for fixed income securities fluctuate and that prices overall may
decline.

FOREIGN RISK

Funds that invest in emerging markets may face greater foreign risk since
emerging markets countries may be more likely to experience political and
economic instability.

11
<PAGE>

CURRENCY RISK

LEVERAGING RISK

When a Fund borrows money or otherwise leverages its portfolio, the value of an
investment in the Fund will be more volatile, and all other risks generally are
compounded. Since each of the Funds may create leverage by using investments
such as repurchase agreements, inverse floating rate instruments or
derivatives, or by borrowing money, each Fund faces this risk.

DERIVATIVES RISK

LIQUIDITY RISK

Liquidity risk exists when particular investments are difficult to purchase or
sell, possibly preventing a Fund from selling out of these illiquid securities
at an advantageous price. Derivatives and securities that involve substantial
interest rate risk or credit risk tend to involve greater liquidity risk. In
addition, liquidity risk tends to increase to the extent a Fund invests in
securities whose sale may be restricted by law or by contract, such as Rule
144A securities.

MANAGEMENT RISK

EXPENSES OF THE FUNDS

The following table presents the expenses that you would pay if you buy and
hold shares of a Fund.

None of the Funds imposes a sales charge, a redemption fee, or an exchange fee.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

<TABLE>
<CAPTION>
Total
Annual
Fund
Management Distribution Other Operating Fee Waiver/ Net
Fund Fees (12b-1) Fees Expenses Expenses Reimbursement* Expenses*
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Loomis Sayles Fixed
Income Fund .50% none % % none %
---------------------------------------------------------------------------------------------
Loomis Sayles High Yield
Fixed Income Fund .60% none % % % %
---------------------------------------------------------------------------------------------
Loomis Sayles
Intermediate Duration
Fixed Income Fund .40% none % % % %
---------------------------------------------------------------------------------------------
Loomis Sayles Investment
Grade Fixed Income Fund .40% none % % % %
---------------------------------------------------------------------------------------------
</TABLE>

* Reflects Loomis Sayles' contractual obligation to
limit the Funds' expenses through February 1, 2002.
The Loomis Sayles Fixed Income Fund currently is
unaffected by this expense limitation.

EXAMPLE

The following example translates the "Total Annual Fund Operating Expenses"
column shown in the preceding table into dollar amounts. This example is
intended to help you compare the cost of investing in a Fund with the cost of
investing in other mutual funds.

<TABLE>
<CAPTION>
Fund 1 year* 3 years* 5 years* 10 years*
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
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 $ $ $ $
----------------------------------------------------------------------------
</TABLE>
* Expenses shown for each Fund, except the Loomis Sayles Fixed Income Fund,
include the fee waiver/reimbursement for the first year of each period.

13
<PAGE>

MORE INFORMATION ABOUT THE FUNDS' INVESTMENTS AND RISK CONSIDERATIONS

TEMPORARY DEFENSIVE STRATEGIES

PORTFOLIO TURNOVER

FIXED INCOME SECURITIES

Fixed income securities pay a specified rate of interest or dividends, or a
rate that is adjusted periodically by reference to some specified index or
market rate. Fixed income securities include securities issued by federal,
state, local, and foreign governments and related agencies, and by a wide range
of private or corporate issuers. Fixed income securities include, among others,
bonds, debentures, notes, bills, and commercial paper. Because interest rates
vary, it is impossible to predict the income of a Fund for any particular
period. The net asset value of a Fund's shares will vary as a result of changes
in the value of the securities in the Fund's portfolio.

INVESTMENT GRADE FIXED INCOME SECURITIES

To be considered investment grade quality, at least one major rating agency
must have rated the security in one of its top four rating categories at the
time a Fund acquires the security or, if the security is unrated, Loomis
Sayles must have determined it to be of comparable quality.
<PAGE>

LOWER RATED FIXED INCOME SECURITIES

A fixed income security will be considered a lower rated fixed income
security ("junk bond") if it is of below investment grade quality. To be
considered investment grade quality, at least one major rating agency must
have rated the security in one of its top four rating categories at the time
a Fund acquires the security or, if the security is unrated, Loomis Sayles
must have determined it to be of comparable quality. Therefore, lower rated
fixed income securities are securities that, at the time a Fund acquires the
security, none of the major rating agencies has rated in one of its top four
rating categories, or unrated securities that Loomis Sayles has determined to
be of comparable quality.

Lower rated fixed income securities are subject to greater credit risk and
market risk than higher quality fixed income securities. Lower rated fixed
income securities are considered predominantly speculative with respect to
the ability of the issuer to make timely principal and interest payments.
Achievement of the investment objective of a Fund investing in lower rated
fixed income securities may be more dependent on Loomis Sayles' own credit
analysis than is the case with funds that invest in higher quality fixed
income securities, such as the Loomis Sayles Investment Grade Fixed Income
Fund. The market for lower rated fixed income securities may be more severely
affected than some other financial markets by economic recession or
substantial interest rate increases, by changing public perceptions of this
market, or by legislation that limits the ability of certain categories of
financial institutions to invest in these securities. In addition, the
secondary market may be less liquid for lower rated fixed income securities.
This lack of liquidity at certain times may affect the values of these
securities and may make the evaluation and sale of these securities more
difficult. Lower rated fixed income securities may be in poor standing or in
default and typically have speculative characteristics.

For more information about the ratings services' descriptions of the various
rating categories, see Appendix A. A Fund may continue to hold fixed income
securities that are downgraded in quality subsequent to their purchase if
Loomis Sayles believes it would be advantageous to do so.

U.S. GOVERNMENT SECURITIES

15
<PAGE>

Some U.S. Government securities, such as Government National Mortgage
Association ("GNMA") certificates, are known as "mortgage-backed" securities.
Interest and principal payments on the mortgages underlying mortgage-backed
U.S. Government securities are passed through to the holders of the security.
If a Fund purchases mortgage-backed securities at a discount or a premium, the
Fund will recognize a gain or loss when the payments of principal, through
prepayment or otherwise, are passed through to the Fund and, if the payment
occurs in a period of falling interest rates, the Fund may not be able to
reinvest the payment at as favorable an interest rate. As a result of these
principal prepayment features, mortgage-backed securities are generally more
volatile investments than many other fixed income securities.

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

COMMON STOCKS AND OTHER EQUITY SECURITIES

Common stocks and their equivalents, together called "equity securities," are
generally volatile and more risky than some other forms of investment. Equity
securities of companies with relatively small market capitalization may be more
volatile than the securities of larger, more established companies and than the
broad equity market indices.

ZERO COUPON SECURITIES

MORTGAGE-BACKED SECURITIES

than-expected prepayment rate will increase yield to maturity. If a Fund
purchases mortgage-backed securities at a discount, faster-than-expected
prepayments will increase, and slower-than-expected prepayments will reduce,
yield to maturity. Prepayments, and resulting amounts available for
reinvestment by the Fund, are likely to be greater during a period of declining
interest rates and, as a result, are likely to be reinvested at lower interest
rates. Accelerated prepayments on securities purchased at a premium may result
in a loss of principal if the premium has not been fully amortized at the time
of prepayment. These securities will decrease in value as a result of increases
in interest rates generally, and they are likely to appreciate less than other
fixed-income securities when interest rates decline because of the risk of
prepayments.

STRIPPED MORTGAGE-BACKED SECURITIES

COLLATERALIZED MORTGAGE OBLIGATIONS

A collateralized mortgage obligation (CMO) is a security backed by a portfolio
of mortgages or mortgage-backed securities held under an indenture. CMOs may be
issued either by U.S. Government instrumentalities or by non-governmental
entities. The issuer's obligation to make interest and principal payments is
secured by the underlying portfolio of mortgages or mortgage-backed securities.
CMOs are issued with a number of classes or series which have different
maturities and which may represent interests in some or all of the interest or
principal on the underlying collateral or a combination thereof. CMOs of
different classes are generally retired in sequence as the underlying mortgage
loans in the mortgage pool are repaid. In the event of sufficient early
prepayments on such mortgages, the class or series of CMOs first to mature
generally will be retired prior to its maturity. As with other mortgage-backed
securities, if a particular class or series of CMOs held by a Fund is retired
early, the Fund could lose any premium it paid when it acquired the investment,
and the Fund may have to reinvest the proceeds at a lower interest rate than
the retired CMO paid. Because of the early retirement feature, CMOs may be more
volatile than many other fixed-income investments.

17
<PAGE>

ASSET-BACKED SECURITIES

Through the use of trusts and special purpose corporations, automobile or
credit card receivables may be securitized in pass-through structures similar
to mortgage pass-through structures or in a pass-through structure similar to
the CMO structure. Generally, the issuers of asset-backed bonds, notes, or
pass-through certificates are special purpose entities and do not have any
significant assets other than the receivables securing such obligations. In
general, the collateral supporting asset-backed securities is of shorter
maturity than mortgage loans. Instruments backed by pools of receivables are
similar to mortgage-backed securities in that they are subject to unscheduled
prepayments of principal prior to maturity. When the obligations are prepaid,
the Fund ordinarily will reinvest the prepaid amounts in securities the yields
of which reflect interest rates prevailing at the time. Therefore, a Fund's
ability to maintain a portfolio that includes high-yielding asset-backed
securities will be adversely affected to the extent that prepayments of
principal must be reinvested in securities that have lower yields than the
prepaid obligations. Moreover, prepayments of securities purchased at a premium
could result in a realized loss.

WHEN-ISSUED SECURITIES

CONVERTIBLE SECURITIES

generally yield less than nonconvertible fixed income securities of similar
credit quality and maturity. A Fund's investment in convertible securities may
at times include securities that have a mandatory conversion feature, pursuant
to which the securities convert automatically into common stock at a specified
date and conversion ratio, or that are convertible at the option of the issuer.
When conversion is not at the option of the holder, the Fund may be required to
convert the security into the underlying common stock even at times when the
value of the underlying common stock has declined substantially.

REAL ESTATE INVESTMENT TRUSTS

RULE 144A SECURITIES

FOREIGN SECURITIES

19
<PAGE>

to those in the United States. The securities of some foreign issuers are less
liquid and at times more volatile than securities of comparable U.S. issuers.
Foreign brokerage commissions and securities custody costs are often higher
than in the United States. With respect to certain foreign countries, there is
a possibility of governmental expropriation of assets, confiscatory taxation,
political or financial instability and diplomatic developments that could
affect the value of investments in those countries. A Fund's receipt of
interest on foreign government securities may depend on the availability of tax
or other revenues to satisfy the issuer's obligations.

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

MANAGEMENT

INVESTMENT ADVISER

<TABLE>
<CAPTION>
Fund Management Fee
-------------------------------------------------------
<S> <C>
Loomis Sayles Fixed Income Fund .50%
-------------------------------------------------------
Loomis Sayles High Yield Fixed Income
Fund .60%
-------------------------------------------------------
Loomis Sayles Intermediate Duration
Fixed Income Fund .40%
-------------------------------------------------------
Loomis Sayles Investment Grade Fixed
Income Fund .40%
</TABLE>

Certain expenses incurred by each Fund, except the Loomis Sayles Fixed Income
Fund, would have been higher if not for Loomis Sayles' contractual obligation
to limit the Funds' expenses through February 1, 2002.

PORTFOLIO MANAGERS

The following persons have had primary responsibility for the day-to-day
management of each indicated Fund's portfolio since the date stated below. Each
of these portfolio managers has been employed by Loomis Sayles for at least
five years.

LOOMIS SAYLES FIXED INCOME FUND Daniel J. Fuss, Vice Chairman of Loomis Sayles
and President of Loomis Sayles Investment Trust, has served as portfolio
manager of the Fund since its inception in 1995.

LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND Daniel J. Fuss has served as
portfolio manager of the Fund since its inception in 1996.

LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND Anthony J. Wilkins,
Executive Vice President and Director of Loomis Sayles and Vice President of
Loomis Sayles Investment Trust, has served as portfolio manager of the Fund
since its inception in 1998.

LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND Daniel J. Fuss has served as
portfolio manager of the Fund since its inception in 1994.

21
<PAGE>

GENERAL INFORMATION

PRICING

HOW TO PURCHASE SHARES

You can buy shares of each Fund by submitting a completed application form and
payment to State Street Bank and Trust Company at the following address:

State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
Attention: Loomis Sayles Investment Trust

For an application form, or if you have questions, you may call Loomis Sayles
at 888-226-9699.

All purchases made by check should be in U.S. dollars and made payable to State
Street Bank and Trust Company. The Funds will not accept checks made payable
<PAGE>

You also may wire subsequent investments by using the following wire
instructions:

State Street Bank and Trust Company
Boston, MA 02101
ABA No. 011000028
DDA 4133-408-7
Mutual Funds f/b/o Loomis Sayles Investment Trust
(Name of Fund)
(Your Name)
(Your account number)

Your bank may charge a fee for transmitting funds by wire.

A Fund may periodically close to new purchases of shares or refuse any order to
buy shares if the Fund determines that doing so would be in the best interests
of the Fund and its shareholders. In particular, a Fund will ordinarily reject
any purchase order that appears to be part of a pattern of transactions
intended to take advantage of short-term swings in the market.

The minimum initial investment for the Loomis Sayles Fixed Income Fund, the
Loomis Sayles High Yield Fixed Income Fund, and the Loomis Sayles Investment
Grade Fixed Income Fund is $3,000,000. The minimum initial investment for the
Loomis Sayles Intermediate Duration Fixed Income Fund is $2,000,000. Loomis
Sayles Investment Trust reserves the right to waive these minimums in its sole
discretion.

Each subsequent investment must be at least $50,000.

HOW TO REDEEM SHARES

23
<PAGE>

holdings. Under unusual circumstances, the Funds may suspend redemptions or
postpone payment for more than seven days. Although most redemptions are made
in cash, as described in the Statement of Additional Information, the Funds
reserve the right to redeem shares in kind.

State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
Attention: Loomis Sayles Investment Trust

If you have certificates for the shares you want to sell, you must include them
along with completed stock power forms.

REDEMPTION BY THE FUNDS If you own fewer shares than the minimum set by the
Trustees, each Fund may redeem your shares and send you the proceeds.

DIVIDENDS AND DISTRIBUTIONS

The Loomis Sayles Fixed Income Fund and the Loomis Sayles High Yield Fixed
Income Fund pay any net investment income to shareholders as dividends annually
in December. The Loomis Sayles Intermediate Duration Fixed Income Fund and the
Loomis Sayles Investment Grade Fixed Income Fund pay any net investment income
to shareholders as dividends monthly. The Funds also distribute all of their
net realized capital gains after applying any capital loss carryovers. Any
capital gains distributions normally are made annually in December, but may be
made more frequently as deemed advisable by the Trustees. The Trustees may
change the frequency with which the Fund declares or pays dividends.

You may choose to:

. Reinvest all distributions in additional shares.

. Have checks sent to the address of record for the amount of distribution or
have the distributions transferred through Automated Clearing House ("ACH")
to a bank of your choice.

If you do not select an option when you open your account, all distributions
will be reinvested.
<PAGE>

TAX CONSEQUENCES

Because the Funds are designed primarily for tax-exempt investors, such as
pension plans, endowments, and foundations, the Funds are not managed with a
view to reducing taxes. For federal income tax purposes, if the shareholder is
subject to tax, distributions of investment income from each of the Funds are
taxable as ordinary income. Taxes on distributions of capital gains are
determined by how long a Fund owned the investments that generated the capital
gains, rather than by how long you have owned your shares of the Fund.
Distributions of short-term capital gains, which result from the sale of
securities that a Fund had held for one year or less, are taxable as ordinary
income. Properly designated distributions of long-term capital gains, which
result from the sale of securities that a Fund had held for more than one year,
are taxable as long-term capital gains (taxable at a maximum rate of 20%).

Distributions of income and capital gains are taxable whether you received them
in cash or reinvested them in additional shares. If a dividend or distribution
is made shortly after you purchase shares of a Fund, while in effect a return
of capital to you, the dividend or distribution is taxable, as described above.
This is called "buying a dividend" and should be avoided, if possible.

In addition to income tax on a Fund's distributions, any gain that results if
you sell or exchange your shares generally is subject to income tax. You should
consult your tax adviser for more information on how an investment in a Fund
affects your own tax situation including possible foreign, state and local
taxes.

FINANCIAL HIGHLIGHTS

This information has been audited by . The report of and each Fund's
financial statements are included in the Funds' annual reports to shareholders,
which are available free of charge by calling 888-226-9699.

25
<PAGE>

LOOMIS SAYLES FIXED INCOME FUND

<TABLE>
<CAPTION>
Fiscal Year Ended
---------------------------------------------------
Sept. 30, Sept. 30, Sept. 30, Dec. 31, Dec. 31,
2000 1999 1998* 1997 1996
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 12.47 $12.59 $12.08 $ 12.08
--- -------- -------- -------- -------
Income from investment
operations--
Net investment income
(loss) 0.97 0.57 0.72 0.91
Net realized and
unrealized gains (losses)
on investments (0.27) (0.62) 0.89 0.27
--- -------- -------- -------- -------
Total from investment
operations 0.70 (0.05) 1.61 1.18
--- -------- -------- -------- -------
Less distributions--
Dividends from net
investment income (0.82) 0.00 (0.75) (0.90)
Distributions from net
realized capital gains (0.26) (0.07) (0.35) (0.28)
--- -------- -------- -------- -------
Total distributions (1.08) (0.07) (1.10) (1.18)
--- -------- -------- -------- -------
Net asset value, end of
period $ 12.09 $ 12.47 $ 12.59 $ 12.08
=== ======== ======== ======== =======
Total return (%)** 5.8 (0.4)+ 13.4 9.8
Net assets, end of period
(000) $298,007 $248,329 $173,048 $91,746
Ratio of operating expenses
to average net assets
(%)*** 0.64 0.65++ 0.65 0.62
Ratio of net investment
income (loss) to average
net assets (%) 8.30 7.37++ 7.56 7.97
Portfolio turnover rate (%) 22 31+ 41 90
Without giving effect to
the expense limitations:
Ratio of expenses to
average net assets would
have been (%) 0.64 0.68++ 0.70 0.62
Net investment income
(loss) per share would
have been ($) 0.97 0.57 0.72 0.91
</TABLE>

* For the nine months ended September 30, 1998. In 1998, the Funds' fiscal
year end changed from December 31 to September 30.

** Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.

*** 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 to average net assets would have been higher.
+ Periods less than one year are not annualized.
++ Annualized for periods less than one year.
<PAGE>

LOOMIS SAYLES HIGH YIELD FIXED INCOME FUND

<TABLE>
<CAPTION>
Fiscal Year Ended
---------------------------------------
Sept. 30, Sept. 30, Sept. 30, Dec. 31, June 5** to
2000 1999 1998* 1997 Dec. 31, 1996
--------------------------------------------------------------------------------
<S> <C> <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 gains
(losses) 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 (%)*** 16.8 (15.5)+ 8.8 7.7+
Net assets, end of
period (000) $25,484 $28,742 $28,872 $3,100
Ratio of operating
expenses to average net
assets (%)**** 0.75 0.75++ 0.75 0.75++
Ratio of net investment
income (loss) to
average net assets (%) 12.22 10.69++ 8.82 9.42++
Portfolio turnover rate
(%) 57 39+ 94 9+
Without giving effect to
the expense
limitations:
Ratio of expenses to
average net assets
would have been (%) 1.15 1.12++ 1.17 2.73++
Net investment income
(loss) per share would
have been ($) 0.92 0.74 0.67 0.44
</TABLE>

* For the nine months ended September 30, 1998. In 1998, the Funds' fiscal
year end changed from December 31 to September 30.
** Commencement of operations on June 5, 1996.
*** Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.

**** 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 to average net assets would have been higher.
+ Periods less than one year not annualized.
++ Annualized for periods less than one year.

27
<PAGE>

LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND

<TABLE>
<CAPTION>
Fiscal Year Ended
----------------------------------
Sept. 30, Sept. 30, Jan. 28* to
2000 1999 Sept. 30, 1998
------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 9.87 $ 10.00
--- ------- -------
Income from investment operations--
Net investment income (loss) 0.61 0.41
Net realized and unrealized gains (losses)
on investments (0.26) (0.22)
--- ------- -------
Total from investment operations 0.35 0.19
--- ------- -------
Less distributions
Dividends from net investment income (0.69) (0.32)
Distributions from net realized capital
gains 0.00 0.00
--- ------- -------
Total distributions (0.69) (0.32)
--- ------- -------
Net asset value, end of period $ 9.53 $ 9.87
=== ======= =======
Total return (%)** 3.6 1.9+
Net assets, end of period (000) $14,371 $11,054
Ratio of operating expenses to average net
assets (%)*** 0.55 0.55++
Ratio of net investment income (loss) to
average net assets (%) 6.27 6.05++
Portfolio turnover rate (%) 35 74+
Without giving effect to the expense
limitations:
Ratio of expenses to average net assets
would have been (%) 1.18 1.33++
Net investment income (loss) per share
would have been ($) 0.55 0.35
</TABLE>

* Commencement of operations on January 28, 1998.
** Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.

*** 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 to average net assets would have been higher.
+ Periods less than one year not annualized.
++ Annualized for periods less than one year.
<PAGE>

LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND

<TABLE>
<CAPTION>
Fiscal Year Ended
---------------------------------------------------
Sept. 30, Sept. 30, Sept. 30, Dec. 31, Dec. 31,
2000 1999 1998* 1997 1996
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 11.42 $ 12.06 $ 11.81 $ 11.56
--- -------- -------- ------- -------
Income from investment
operations--
Net investment income
(loss) 0.81 0.61 0.83 0.80
Net realized and
unrealized gains (losses)
on investments (0.27) (0.60) 0.37 0.40
--- -------- -------- ------- -------
Total from investment
operations 0.54 0.01 1.20 1.20
--- -------- -------- ------- -------
Less distributions --
Dividends from net
investment income (0.82) (0.63) (0.81) (0.79)
Distributions from net
realized capital gains (0.12) (0.02) (0.14) (0.16)
--- -------- -------- ------- -------
Total distributions (0.94) (0.65) (0.95) (0.95)
--- -------- -------- ------- -------
Net asset value, end of
period $ 11.02 $ 11.42 $ 12.06 $ 11.81
=== ======== ======== ======= =======
Total return (%)** 4.8 (0.0)+ 10.6 10.9
Net assets, end of period
(000) $146,757 $119,084 $82,964 $51,752
Ratio of operating expenses
to average net assets
(%)*** 0.55 0.55++ 0.55 0.55
Ratio of net investment
income (loss) to average
net assets (%) 7.15 6.85++ 6.97 7.27
Portfolio turnover rate (%) 18 31+ 58 74
Without giving effect to
the expense limitations:
Ratio of expenses to
average net assets would
have been (%) 0.59 0.65++ 0.69 0.70
Net investment income
(loss) per share would
have been ($) 0.81 0.60 0.81 0.78
</TABLE>

* For the nine months ended September 30, 1998. In 1998, the Funds' fiscal
year end changed from December 31 to September 30.

** Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.

*** 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 to average net assets would have been higher.
+ Periods less than one year are not annualized.
++ Annualized for periods less than one year.

29
<PAGE>

APPENDIX A

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

STANDARD & POOR'S

AAA An obligation rated "AAA" has the highest rating assigned by Standard &
Poor's. The obligor's capacity to meet its financial commitment on the
obligation is extremely strong.

AA An obligation rated "AA" differs from the highest rated obligations only in
small degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.

CC An obligation rated "CC" is currently highly vulnerable to nonpayment.

obligation are being continued. A "C" also will be assigned to a preferred
stock issue in arrears on dividends or sinking fund payments, but that is
currently paying.

r This symbol is attached to the ratings of instruments with significant
noncredit risks. It highlights risks to principal or volatility of expected
returns which are not addressed in the credit rating. Examples include:
obligations liked or indexed to equities, currencies, or commodities;
obligations exposed to severe prepayment risk-such as interest-only or
principal-only mortgage securities; and obligations with unusually risky
interest terms, such as inverse floaters.

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

31
<PAGE>

MOODY'S INVESTORS SERVICE, INC.

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

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

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

<PAGE>

FOR MORE INFORMATION ABOUT THE FUNDS:

In the Funds' annual report, you will find a discussion of the market
conditions and investment strategies that significantly affected the Funds'
performance during the last fiscal year.

Loomis Sayles Investment Trust
One Financial Center
Boston, MA 02111
888-226-9699
www.loomissayles.com

File No. 811-8282

33
<PAGE>

[LOGO]

LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND

Prospectus . February 1, 2001

Loomis, Sayles & Company, L.P., which has been an investment adviser since
1926, is the investment adviser of the Fund.

TABLE OF CONTENTS

<TABLE>
<S> <C>
RISK/RETURN SUMMARY 1
General Information 1
Loomis Sayles California Tax-Free Income Fund 2
Summary of Principal Risks 4

EXPENSES OF THE FUND 6

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS AND RISK CONSIDERATIONS 7

MANAGEMENT 11
Investment Adviser 11
Portfolio Managers 11

GENERAL INFORMATION 12
Pricing 12
How to Purchase Shares 12
How to Redeem Shares 13
Dividends and Distributions 14
Tax Consequences 14

FINANCIAL HIGHLIGHTS 15

APPENDIX A 17
</TABLE>
<PAGE>

RISK/RETURN SUMMARY

GENERAL INFORMATION

Loomis Sayles Investment Trust is a group of nine mutual funds. This Prospectus
describes the Loomis Sayles California Tax-Free Income Fund.

. how the Fund's average annual returns for one year, five years, and over the
life of the Fund compared to those of a broad-based securities market index.

The Fund's past performance, of course, does not necessarily indicate how it
will perform in the future.

1
<PAGE>

LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND

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

PRINCIPAL INVESTMENT STRATEGIES The Fund generally invests substantially all of
its assets in investment grade fixed income securities the income from which,
in the opinion of issuer's counsel at the time of issuance, is exempt from
federal income tax and California personal income tax ("tax-exempt
securities"). It is a fundamental policy of the Fund that, during periods of
normal market conditions, at least 80% of its assets will be invested in tax-
exempt securities. The Fund may invest in fixed income securities of any
maturity.

Loomis Sayles generally prefers securities that are protected against calls
(early redemption by the issuer).

The Fund also may invest in U.S. Government securities, fixed income
securities, mortgage-backed securities, zero coupon securities, when-issued
securities, repurchase agreements, and Rule 144A securities.

PRINCIPAL RISKS Among the principal risks of investing in the Fund are the
following:
. state risk (the risk that the value of the Fund's investments will fall as a
result of adverse changes in the California economy or in the ability of
issuers of California tax-exempt securities to meet their obligations);
. interest rate risk (the risk that the value of the Fund's investments will
fall if interest rates rise);
. credit risk (the risk that companies in which the Fund invests, or with
which it does business, will fail financially, and be unwilling or unable to
meet their obligations to the Fund);

. liquidity risk (the risk that the Fund may be unable to find a buyer for its
investments when it seeks to sell them);

. leveraging risk (the risk that the Fund's use of leverage may cause its
value to be volatile);
. market risk (the risk that the value of the Fund's investments will fall as
a result of movements in financial markets generally);
. tax risk (the risk that some or all of the interest the Fund receives might
be or become taxable); and
. management risk (the risk that Loomis Sayles' investment techniques will be
unsuccessful and may cause the Fund to incur losses).
<PAGE>

BAR CHART The following bar chart shows year-to-year changes in the performance
of the Fund.

(CHART)

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on June 1, 1995. The Fund's shares were registered under
the Securities Act of 1933 on March 7, 1997.

The Fund's returns will vary. For example, during the period shown in the bar
chart, the Fund's best quarter was up % ( quarter, ), and the Fund's worst
quarter was down % ( quarter, ).

PERFORMANCE TABLE The following table compares the performance of the Fund to
the Lehman Brothers Five Year Municipal Bond Index, an index that tracks the
performance of municipal bonds. The index is unmanaged, has no operating costs,
and is included in the table to facilitate your comparison of the Fund's
performance to a broad-based market index.

AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Since
Inception
1 year 5 years (6/1/95)*
------------------------------------------------------------------------
<S> <C> <C> <C>
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND
LEHMAN BROTHERS FIVE YEAR MUNICIPAL BOND INDEX /1/
</TABLE>

* The Fund was registered under the Investment Company Act of 1940 and
commenced operations on June 1, 1995. The Fund's shares were registered under
the Securities Act of 1933 on March 7, 1997.

/1/Since inception data for the index covers the period from month-end
following the Fund's inception date through December 31, 2000.

The Fund's performance through December 31, 2000 benefited from Loomis Sayles'
agreement to limit the Fund's expenses.

3
<PAGE>

SUMMARY OF PRINCIPAL RISKS

STATE RISK

Because the Fund will invest primarily in California tax-exempt securities, 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. As a result, the value of the Fund's
shares may fluctuate more widely than the value of shares of a fund that
invests in securities of issuers located in a number of different states. The
ability of California state, county, or local governments to meet their
obligations will depend primarily on the availability of tax and other revenues
to those governments and on their fiscal conditions generally. An expanded
discussion of risks associated with California tax-exempt securities is
contained in the Statement of Additional Information.

INTEREST RATE RISK

The Fund also faces increased interest rate risk when it invests in fixed
income securities paying no current interest, such as zero coupon securities.

CREDIT RISK

MARKET RISK

This is the risk that the value of the Fund's investments will change as the
markets for fixed income securities fluctuate and that prices overall may
decline.

LEVERAGING RISK

LIQUIDITY RISK

Liquidity risk exists when particular investments are difficult to purchase or
sell, possibly preventing the Fund from selling out of these illiquid
securities at an advantageous price. Securities that involve substantial
interest rate risk or credit risk tend to involve greater liquidity risk. In
addition, liquidity risk tends to increase to the extent the Fund invests in
securities whose sale may be restricted by law or by contract, such as Rule
144A securities.

TAX RISK

The Fund is subject to the risk that some or all of the interest it receives
might become taxable by law or be determined by the Internal Revenue Service or
the California state tax authority to be taxable. In this event, the value of
the Fund's investments would likely fall, and some or all of the income
distributions paid by the Fund might become taxable. In addition, some or all
of the income distributions paid by the Fund may be subject to Federal
alternative minimum income tax.

MANAGEMENT RISK

5
<PAGE>

EXPENSES OF THE FUND

The following table presents the expenses that you would pay if you buy and
hold shares of the Fund.

The Fund does not impose a sales charge, a redemption fee, or an exchange fee.

ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)

<TABLE>
<CAPTION>
Total
Annual Fee
Fund Waiver/
Management Distribution Other Operating Reimburse- Net
Fund Fees (12b-1) Fees Expenses Expenses ment* Expenses*
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Loomis Sayles California
Tax-Free Income Fund .50% none
-----------------------------------------------------------------------------------------
</TABLE>

* Reflects Loomis Sayles' contractual obligation to limit the Fund's expenses
through February 1, 2002.

EXAMPLE

<TABLE>
<CAPTION>
Fund 1 year* 3 years* 5 years* 10 years*
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Loomis Sayles California Tax-Free Income
Fund
-----------------------------------------------------------------------------
</TABLE>
* Expenses shown for the Fund include the fee waiver/reimbursement for the
first year of each period.
<PAGE>

MORE INFORMATION ABOUT THE FUND'S INVESTMENTS AND RISK CONSIDERATIONS

TEMPORARY DEFENSIVE STRATEGIES

PORTFOLIO TURNOVER

FIXED INCOME SECURITIES

INVESTMENT GRADE FIXED INCOME SECURITIES

To be considered investment grade quality, at least one major rating agency
must have rated the security in one of its top four rating categories at
the time the Fund acquires the security or, if the security is unrated,
Loomis Sayles must have determined it to be of comparable quality.

7
<PAGE>

LOWER RATED FIXED INCOME SECURITIES

A fixed income security will be considered a lower rated fixed income
security ("junk bond") if it is of below investment grade quality. To be
considered investment grade quality, at least one major rating agency must
have rated the security in one of its top four rating categories at the
time the Fund acquires the security or, if the security is unrated, Loomis
Sayles must have determined it to be of comparable quality. Therefore,
lower rated fixed income securities are securities that, at the time the
Fund acquires the security, none of the major rating agencies has rated in
one of its top four rating categories, or unrated securities that Loomis
Sayles has determined to be of comparable quality.

Lower rated fixed income securities are subject to greater credit risk and
market risk than higher quality fixed income securities. Lower rated fixed
income securities are considered predominantly speculative with respect to
the ability of the issuer to make timely principal and interest payments.
Achievement of the Fund's investment objective may be more dependent on
Loomis Sayles' own credit analysis than is the case with funds that invest
in higher quality fixed income securities. The market for lower rated fixed
income securities may be more severely affected than some other financial
markets by economic recession or substantial interest rate increases, by
changing public perceptions of this market, or by legislation that limits
the ability of certain categories of financial institutions to invest in
these securities. In addition, the secondary market may be less liquid for
lower rated fixed income securities. This lack of liquidity at certain
times may affect the values of these securities and may make the evaluation
and sale of these securities more difficult. Lower rated fixed income
securities may be in poor standing or in default and typically have
speculative characteristics.

For more information about the ratings services' descriptions of the
various rating categories, see Appendix A. The Fund may continue to hold
fixed income securities that are downgraded in quality subsequent to their
purchase if Loomis Sayles believes it would be advantageous to do so.

U.S. GOVERNMENT SECURITIES

Government securities tend to be lower than those on corporate securities of
comparable maturities.

ZERO COUPON SECURITIES

WHEN-ISSUED SECURITIES

9
<PAGE>

delivery. If the Fund has outstanding obligations to buy when-issued
securities, it will segregate liquid assets at its custodian bank in an amount
sufficient to satisfy these obligations.

MORTGAGE-BACKED SECURITIES

REPURCHASE AGREEMENTS

In a repurchase agreement, the Fund buys securities from a seller, usually a
bank or brokerage firm, with the understanding that the seller will repurchase
the securities at a higher price at a later date. Such transactions afford an
opportunity for the Fund to earn a return on available cash at minimal market
risk, although the Fund may be subject to various delays and risks of loss if
the seller is unable to meet its obligations to repurchase.

RULE 144A SECURITIES

MANAGEMENT

INVESTMENT ADVISER

Certain expenses incurred by the Fund would have been higher if not for Loomis
Sayles' contractual obligation to limit the Fund's expenses through February 1,
2002.

PORTFOLIO MANAGERS

Kent P. Newmark, Vice President and Director of Loomis Sayles and Vice
President of Loomis Sayles Investment Trust, and Robert K. Payne, Vice
President of Loomis Sayles and of Loomis Sayles Investment Trust, have served
as portfolio managers of the Fund since its inception in 1995. Each has been
employed by Loomis Sayles for more than five years.

11
<PAGE>

GENERAL INFORMATION

PRICING

HOW TO PURCHASE SHARES

You can buy shares of the Fund by submitting a completed application form and
payment to Loomis Sayles Investment Trust at the following address:

State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
Attention: Loomis Sayles Investment Trust

For an application form, or if you have questions, you may call Loomis Sayles
at 888-226-9699.

statement or a note containing the Fund's name, your account number and your
name, address, telephone number, and social security number.

You also may wire subsequent investments by using the following wire
instructions:

State Street Bank and Trust Company
Boston, MA 02101
ABA No. 011000028
DDA 4133-408-7
Mutual Funds f/b/o Loomis Sayles Investment Trust

Loomis Sayles California Tax-Free Income Fund
(Your Name)
(Your account number)

Your bank may charge a fee for transmitting funds by wire.

The minimum initial investment for the Fund is $500,000. Each subsequent
investment must be at least $50,000. Loomis Sayles Investment Trust reserves
the right to waive these minimums in its sole discretion.

HOW TO REDEEM SHARES

Your redemptions generally will be sent to you via first class mail on the
business day after your request is received in good order. Because large
redemptions are likely to require liquidation by the Fund of portfolio
holdings, payments for large redemptions may be delayed for up to seven days to
provide for orderly liquidation of such holdings. Under unusual circumstances,
the Fund may suspend redemptions or postpone payment for more than seven days.
Although most redemptions are made in cash, as described in the Statement of
Additional Information, the Fund reserves the right to redeem shares in kind.

State Street Bank and Trust Company
P.O. Box 1978
Boston, MA 02105
Attention: Loomis Sayles Investment Trust

13
<PAGE>

If you have certificates for the shares you want to sell, you must include them
along with completed stock power forms.

REDEMPTION BY THE FUND If you own fewer shares than the minimum set by the
Trustees, the Fund may redeem your shares and send you the proceeds.

DIVIDENDS AND DISTRIBUTIONS

The Fund pays any net investment income to shareholders as dividends monthly.
The Fund also distributes all of its net realized capital gains after applying
any capital loss carryovers. Any capital gains distributions normally are made
annually in December, but may be made more frequently as deemed advisable by
the Trustees. The Trustees may change the frequency with which the Fund
declares or pays dividends.

You may choose to:

. Reinvest all distributions in additional shares.

. Have checks sent to the address of record for the amount of the
distributions or have the distributions transferred through Automated
Clearing House ("ACH") to a bank of your choice.

If you do not select an option when you open your account, all distributions
will be reinvested.

TAX CONSEQUENCES

If, at the end of each quarter of the Fund's taxable year, more than half of
the value of the Fund's assets consist of California tax-exempt securities, the
Fund will qualify to pay dividends that may be excluded from your gross income
on your federal tax return and your California personal income tax return. If
you receive social security or railroad retirement benefits, however, you may
be subject to federal income tax (but not California personal income tax) on a
portion of those benefits as a result of receiving tax-exempt income. Tax-
exempt income also may be taken into account for the federal alternative
minimum tax and for liability for California franchise or corporation income
tax for corporate shareholders subject to such tax.

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

If you incur or continue indebtedness to purchase or carry shares of the Fund,
that portion of interest paid or accrued on such indebtedness that equals the
total interest paid or accrued on the indebtedness, multiplied by the
percentage of the Fund's total distributions (not including distributions from
net long-term capital gains) paid to you that is exempt-interest dividends, is
not deductible for federal income tax purposes. Furthermore, none of that
interest is deductible for California personal income tax purposes. Under rules
used by the Internal Revenue Service for determining when borrowed funds are
considered used for the purpose of purchasing or carrying particular assets,
federal and state taxing authorities may consider the purchase of shares to
have been made with borrowed funds, even though such funds are not directly
traceable to the purchase of shares.

Some of the Fund's investments may produce taxable income. Distributions of
taxable income will be taxable to you as ordinary income, except that any
distributions designated by the Fund as deriving from net gains on securities
held for more than one year (capital gain dividends) will be taxable to you as
long-term capital gains (taxable at a maximum rate of up to 20%), regardless of
how long you have held your shares in the Fund. If such a dividend or
distribution is made shortly after you purchase shares of the Fund, while in
effect a return of capital to you, the dividend or distribution is taxable as
described in this paragraph. This is called "buying a dividend" and should be
avoided if possible. Distributions are taxable whether you received them in
cash or reinvested them in additional shares.

If at least 95% of the Fund's dividends are designated as exempt-interest
dividends, federal backup withholding rules do not apply with respect to such
dividends. See the Statement of Additional Information for more information on
backup withholding and other tax rules.

You should consult your tax adviser for more information on how an investment
in the Fund affects your own tax situation, including possible foreign, state
and local taxes.

FINANCIAL HIGHLIGHTS

The financial highlights table below is intended to help you understand the
Fund's financial performance. Certain information reflects financial results
for a single Fund share. The total returns represent the rate that you would
have earned or lost on an investment in the Fund, assuming reinvestment of all
dividends and distributions.

This information has been audited by . The report of and the Fund's
financial statements are included in the Fund's annual report to shareholders,
which is available free of charge by calling 888-226-9699.

15
<PAGE>

LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND

<TABLE>
<CAPTION>
Fiscal Year Ended
-------------------------------------------------
Sept. 30, Sept. 30, Sept. 30, Dec. 31, Dec. 31,
2000 1999 1998* 1997 1996
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 10.59 $ 10.41 $ 10.19 $ 10.23
--- ------- ------- ------- -------
Income from investment
operations--
Net investment income (loss) 0.47 0.35 0.47 0.46
Net realized and unrealized
gains (losses) on
investments (0.41) 0.19 0.25 (0.04)
--- ------- ------- ------- -------
Total from investment
operations 0.06 0.54 0.72 0.42
--- ------- ------- ------- -------
Less distributions--
Dividends from net
investment income (0.47) (0.36) (0.47) (0.45)
Distributions from net
realized capital gains 0.00 0.00 (0.03) (0.01)
--- ------- ------- ------- -------
Total distributions (0.47) (0.36) (0.50) (0.46)
--- ------- ------- ------- -------
Net asset value, end of
period $ 10.18 $ 10.59 $ 10.41 $ 10.19
=== ======= ======= ======= =======
Total return (%)** 0.6 5.3+ 7.3 4.1
Net assets, end of period
(000) $18,672 $19,618 $16,822 $13,460
Ratio of operating expenses
to average net assets (%)*** 0.65 0.65++ 0.65 0.65
Ratio of net investment
income (loss) to average net
assets (%) 4.50 4.55++ 4.62 4.58
Portfolio turnover rate (%) 14 12+ 24 18
Without giving effect to the
expense limitations:
Ratio of expenses to average
net assets would have been
(%) 1.19 1.33++ 1.41 1.26
Net investment income (loss)
per share would have been
($) 0.41 0.30 0.39 0.40
</TABLE>

* For the nine months ended September 30, 1998. In 1998, the Fund's fiscal
year end changed from December 31 to September 30.

** Total returns would have been lower had the adviser not reduced its
advisory fees and/or borne other operating expenses.

APPENDIX A

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

STANDARD & POOR'S

AAA An obligation rated "AAA" has the highest rating assigned by Standard &
Poor's. The obligor's capacity to meet its financial commitment on the
obligation is extremely strong.

AA An obligation rated "AA" differs from the highest rated obligations only in
small degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.

CC An obligation rated "CC" is currently highly vulnerable to nonpayment.

C A subordinated debt or preferred stock obligation rated "C" is currently
highly vulnerable to nonpayment. The "C" rating may be used to cover a
situation where

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<PAGE>

a bankruptcy petition has been filed or similar action taken, but payments on
this obligation are being continued. A "C" also will be assigned to a preferred
stock issue in arrears on dividends or sinking fund payments, but that is
currently paying.

D An obligation rated "D" is in payment default. The "D" rating category is used
when payments on an obligation are not made on the date due even if the
applicable grace period has not expired, unless Standard & Poor's believes that
such payments will be made during such grace period. The "D" rating also will be
used upon the filing of a bankruptcy petition or the taking of a similar action
if payments on an obligation are jeopardized.

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

<PAGE>

MOODY'S INVESTORS SERVICE, INC.

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

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

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

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

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

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

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

NOTE: Moody's applies numerical modifiers 1, 2, and 3 in each generic rating
classification from Aa through Caa. The modifier 1 indicates that the obligation
ranks in the higher end of its generic rating category; the modifier 2 indicates
a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of
that generic rating category.

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<PAGE>

FOR MORE INFORMATION ABOUT THE FUND:

In the Fund's annual report, you will find a discussion of the market
conditions and investment strategies that significantly affected the Fund's
performance during the last fiscal year.

Loomis Sayles Investment Trust
One Financial Center
Boston, MA 02111
888-226-9699
www.loomissayles.com

File No. 811-8282
<PAGE>

[LOGO]

STATEMENT OF ADDITIONAL
INFORMATION

FEBRUARY 1, 2001

THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS. THIS STATEMENT
OF ADDITIONAL INFORMATION RELATES TO THE PROSPECTUS OR PROSPECTUSES OF EACH
SERIES ("FUND") OF LOOMIS SAYLES INVESTMENT TRUST DATED FEBRUARY 1, 2001, AS
REVISED FROM TIME TO TIME. EACH REFERENCE TO THE PROSPECTUS IN THIS STATEMENT
OF ADDITIONAL INFORMATION SHALL INCLUDE ALL OF THE FUNDS' CURRENT PROSPECTUSES,
UNLESS OTHERWISE NOTED. THIS STATEMENT OF ADDITIONAL INFORMATION SHOULD BE READ
IN CONJUNCTION WITH THE APPLICABLE PROSPECTUS. A COPY OF EACH PROSPECTUS MAY BE
OBTAINED FROM LOOMIS SAYLES INVESTMENT TRUST, ONE FINANCIAL CENTER, BOSTON,
MASSACHUSETTS 02111.

LOOMIS SAYLES INVESTMENT TRUST

.Loomis Sayles California Tax-Free Income Fund
.Loomis Sayles Core Fixed Income Fund
.Loomis Sayles Fixed Income Fund
.Loomis Sayles High Yield Fixed Income Fund
.Loomis Sayles Intermediate Duration Fixed Income Fund
.Loomis Sayles Investment Grade Fixed Income Fund
.Loomis Sayles Provident Fund
.Loomis Sayles Small Company Growth Fund
.Loomis Sayles Small Company Value Fund
<PAGE>

TABLE OF CONTENTS

<TABLE>
<S> <C>
THE TRUST.................................................................. 1

INVESTMENT STRATEGIES AND RISKS............................................ 1

Investment Restrictions.................................................. 1

Investment Strategies.................................................... 3

U.S. Government Securities............................................... 3

When-Issued Securities................................................... 4

Zero Coupon Bonds........................................................ 5

Repurchase Agreements.................................................... 5

Real Estate Investment Trusts............................................ 5

Rule 144A Securities..................................................... 6

Foreign Currency Transactions............................................ 6

Options.................................................................. 7

Small Companies.......................................................... 8

California Tax-Exempt Securities......................................... 9

MANAGEMENT OF THE TRUST.................................................... 12

INVESTMENT ADVISORY AND OTHER SERVICES..................................... 18

PORTFOLIO TRANSACTIONS AND BROKERAGE....................................... 22

DESCRIPTION OF THE TRUST................................................... 25

Voting Rights............................................................ 25

Shareholder and Trustee Liability........................................ 26

How to Buy Shares........................................................ 27

Net Asset Value.......................................................... 27

SHAREHOLDER SERVICES....................................................... 28

Open Accounts............................................................ 28

Redemptions.............................................................. 28

INCOME DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAX STATUS................ 29

FINANCIAL STATEMENTS....................................................... 33

CALCULATION OF YIELD AND TOTAL RETURN...................................... 33

PERFORMANCE COMPARISONS.................................................... 33

PERFORMANCE DATA........................................................... 38

APPENDIX A--PUBLICATIONS AND OUTLETS THAT MAY CONTAIN FUND INFORMATION..... 40

APPENDIX B--ADVERTISING AND PROMOTIONAL LITERATURE......................... 42
</TABLE>

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THE TRUST

Loomis Sayles Investment Trust (the "Trust") is a diversified, registered,
open-end management investment company. The Trust includes nine series
(collectively, the "Funds," with each series being known as a "Fund"). The
Trust was organized as a Massachusetts business trust on December 23, 1993.

Shares of the Funds are freely transferable and entitle shareholders to
receive dividends as determined by the Trust's Board of Trustees and to cast a
vote for each share held at shareholder meetings. The Trust generally does not
hold shareholder meetings and expects to do so only when required by law.
Shareholders may call meetings to consider removal of the Trust's trustees.

INVESTMENT STRATEGIES AND RISKS

The investment objective and principal investment strategies of each Fund are
described in the Prospectus. The investment policies of each Fund set forth in
the Prospectus and in this Statement of Additional Information may be changed
by the Trust's Board of Trustees without shareholder approval, except that the
investment objective of each Fund as set forth in the Prospectus and any policy
explicitly identified as "fundamental" may not be changed without the approval
of the holders of a majority of the outstanding shares of the relevant Fund
(which in the Prospectus and this Statement of Additional Information means the
lesser of (i) 67% of the shares of that Fund present at a meeting at which more
than 50% of the outstanding shares are present or represented by proxy or (ii)
more than 50% of the outstanding shares). Except in the case of the 15%
limitation on illiquid securities, the percentage limitations set forth below
and in the Prospectus will apply at the time a security is purchased and will
not be considered violated unless an excess or deficiency occurs or exists
immediately after and as a result of such purchase.

INVESTMENT RESTRICTIONS

In addition to its investment objective and policies set forth in the
Prospectus, the following investment restrictions are policies of each Fund
(and those marked with an asterisk are fundamental policies of each Fund):

Each Fund will not:

*(1) Act as underwriter, except to the extent that, in connection with the
disposition of portfolio securities, it may be deemed to be an underwriter
under certain federal securities laws.

*(2) Invest in oil, gas, or other mineral leases, rights, or royalty
contracts, or in real estate, commodities, or commodity contracts. (This
restriction does not prevent any Fund from engaging in transactions in futures
contracts relating to securities indices, interest rates, or financial
instruments or options, or from investing in issuers that invest or deal in the
foregoing types of assets or from purchasing securities that are secured by
real estate.)

*(3) Make loans, except to the extent permitted under the Investment Company
Act of 1940, as amended (the "1940 Act"). (For purposes of this investment
restriction, neither (i) entering into repurchase agreements nor (ii)
purchasing debt obligations in which a Fund may invest consistent with its
investment policies is considered the making of a loan.)

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<PAGE>

*(4) Change its classification pursuant to Section 5(b) of the 1940 Act from
a "diversified" to "non-diversified" management investment company.

*(5) Purchase any security (other than U.S. Government securities) if, as a
result, more than 25% of the Fund's assets (taken at current value) would be
invested in any one industry (in the utilities category, gas, electric, water,
and telephone companies will be considered as being in separate industries).

*(6) Borrow money in excess of 10% of its assets (taken at cost) or 5% of its
assets (taken at current value), whichever is lower, nor borrow any money
except as a temporary measure for extraordinary or emergency purposes; however,
the Funds' use of reverse repurchase agreements and "dollar roll" arrangements
shall not constitute borrowing by the Fund for purposes of this restriction.

(7) Purchase any illiquid security, including any security that is not
readily marketable, if, as a result, more than 15% of the Fund's net assets
(based on current value) would then be invested in such securities.

*(8) Issue senior securities other than any borrowing permitted by
restriction (6) above. (For the purposes of this restriction, none of the
following is deemed to be a senior security: any pledge, mortgage,
hypothecation, or other encumbrance of assets; any collateral arrangements with
respect to options, futures contracts, and options on futures contracts and
with respect to initial and variation margin; and the purchase or sale of or
entry into options, forward contracts, futures contracts, options on futures
contracts, swap contracts, or any other derivative investments to the extent
that Loomis, Sayles & Company, L.P. ("Loomis Sayles") determines that the Fund
is not required to treat such investments as senior securities pursuant to the
pronouncements of the Securities and Exchange Commission (the "SEC") or its
staff.)

The Funds have other non-fundamental investment parameters, as listed below.

Loomis Sayles California Tax-Free Income Fund

The Fund normally will invest at least 80% of its assets in issues rated A or
better by Standard & Poor's or Moody's Investors Service, Inc. At the time of
purchase, all issues will be rated at least BBB by Standard & Poor's or Baa by
Moody's Investors Service, Inc., or, if unrated, determined by Loomis Sayles to
be of equivalent quality.

Loomis Sayles Core Fixed Income Fund

The Fund normally will invest at least 65% of its assets in fixed income
securities.

Loomis Sayles Fixed Income Fund

The Fund normally will invest at least 65% of its assets in fixed income
securities.

Loomis Sayles High Yield Fixed Income Fund

The Fund normally will invest at least 65% of its assets in lower rated fixed
income securities ("junk bonds").

Loomis Sayles Intermediate Duration Fixed Income Fund

The Fund normally will invest at least 65% of its assets in fixed income
securities and normally will maintain a weighted average duration of two to
five years.

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<PAGE>

Loomis Sayles Investment Grade Fixed Income Fund

The Fund normally will invest at least 90% of its assets in investment grade
fixed income securities.

Loomis Sayles Provident Fund

The Fund normally will invest at least 65% of its assets in common stocks and
other equity securities.

Loomis Sayles Small Company Growth Fund

Loomis Sayles Small Company Value Fund

The Fund normally will invest at least 65% of its assets in equity securities
of companies with market capitalizations that fall within the capitalization
range of the Russell 2000 Index and may invest up to 35% of its assets in
larger companies.
The Funds intend, based on the views of the staff of the SEC, to restrict
their investments, if any, in repurchase agreements maturing in more than seven
days, together with other investments in illiquid securities, to the percentage
permitted by restriction (7) above.

Although authorized to invest in restricted securities, the Funds, as a
matter of non-fundamental operating policy, currently do not intend to invest
in such securities, except Rule 144A securities.

For purposes of the foregoing restrictions, the Funds do not consider a swap
contract on one or more securities, indices, currencies or interest rates to be
a commodity or a commodity contract, nor, consistent with the position of the
staff of the Securities and Exchange Commission, do the Funds consider such
swap contracts to involve the issuance of a senior security, provided the
relevant Fund segregates with its custodian liquid assets (marked to market on
a daily basis) sufficient to meet its obligations under such contracts.

INVESTMENT STRATEGIES

Except to the extent prohibited by a Fund's investment policies as set forth
in the Prospectus or in this Statement of Additional Information, the
investment strategies used by Loomis Sayles in managing each of the Funds may
include investments in the types of securities described below.

U.S. GOVERNMENT SECURITIES

U.S. Government securities include direct obligations of the U.S. Treasury,
as well as securities issued or guaranteed by U.S. Government agencies,
authorities, and instrumentalities, including, among others, the Government
National Mortgage Association, the Federal Home Loan Mortgage Corporation, the
Federal National Mortgage Association, the Federal Housing Administration, the
Resolution Funding Corporation, the Federal Farm Credit Banks, the Federal Home
Loan Bank, the Tennessee Valley Authority, the Student Loan Marketing
Association, and the Small Business Administration. More detailed information
about some of these categories of U.S. Government securities follows.

U.S. Treasury Bills--U.S. Treasury Bills are direct obligations of the U.S.
Treasury that are issued in maturities of one year or less. No interest is paid
on Treasury bills; instead, they are issued at a discount and repaid at full
face value when they mature. They are backed by the full faith and credit of
the U.S. Government.

3
<PAGE>

U.S. Treasury Notes and Bonds--U.S. Treasury Notes and Bonds are direct
obligations of the U.S. Treasury that are issued in maturities that vary
between one and forty years, with interest normally payable every six months.
They are backed by the full faith and credit of the U.S. Government.

"Ginnie Maes"--Ginnie Maes are debt securities issued by a mortgage banker or
other mortgagee that represent an interest in a pool of mortgages insured by
the Federal Housing Administration or the Farmer's Home Administration or
guaranteed by the Veterans Administration. The Government National Mortgage
Association ("GNMA") guarantees the timely payment of principal and interest
when such payments are due, whether or not these amounts are collected by the
issuer of these certificates on the underlying mortgages. An assistant attorney
general of the United States has rendered an opinion that the guarantee by GNMA
is a general obligation of the United States backed by its full faith and
credit. Mortgages included in single family or multi-family residential
mortgage pools backing an issue of Ginnie Maes have a maximum maturity of up to
30 years. Scheduled payments of principal and interest are made to the
registered holders of Ginnie Maes (such as the Funds) each month. Unscheduled
prepayments may be made by homeowners or as a result of a default. Prepayments
are passed through to the registered holder of Ginnie Maes along with regular
monthly payments of principal and interest.

"Fannie Maes"--The Federal National Mortgage Association ("FNMA") is a
government-sponsored corporation owned entirely by private stockholders that
purchases residential mortgages from a list of approved seller/servicers.
Fannie Maes are pass-through securities issued by FNMA that are guaranteed as
to timely payment of principal and interest by FNMA but are not backed by the
full faith and credit of the U.S. Government.

"Freddie Macs"--The Federal Home Loan Mortgage Corporation ("FHLMC") is a
corporate instrumentality of the U.S. Government. Freddie Macs are
participation certificates issued by FHLMC that represent an interest in
residential mortgages from FHLMC's national portfolio. FHLMC guarantees the
timely payment of interest and ultimate collection of principal, but Freddie
Macs are not backed by the full faith and credit of the U.S. Government.

The yields available from U.S. Government securities are generally lower than
the yields available from corporate fixed-income securities. Like other fixed-
income securities, however, the values of U.S. Government securities change as
interest rates fluctuate. Fluctuations in the value of portfolio securities
will not affect interest income on existing portfolio securities but will be
reflected in the Fund's net asset value.

WHEN-ISSUED SECURITIES

When-issued securities are agreements with banks or broker-dealers for the
purchase or sale of securities at an agreed-upon price on a specified future
date. Such agreements might be entered into, for example, when a Fund that
invests in fixed income securities anticipates a decline in interest rates and
is able to obtain a more advantageous yield by committing currently to purchase
securities to be issued later. When a Fund purchases securities on a when-
issued or delayed-delivery basis, it is required to create a segregated account
with the Trust's custodian and to maintain in that account liquid assets in an
amount equal to or greater than, on a daily basis, the amount of the Fund's
when-issued or delayed-delivery commitments. Each Fund will make commitments to
purchase on a when-issued or delayed-delivery basis only securities meeting
that Fund's investment criteria. The Fund may take delivery of these securities
or, if it is deemed advisable as a matter of investment

4
<PAGE>

strategy, the Fund may sell these securities before the settlement date. When
the time comes to pay for when-issued or delayed-delivery securities, the Fund
will meet its obligations from then available cash flow or the sale of
securities, or from the sale of the when-issued or delayed-delivery securities
themselves (which may have a value greater or less than the Fund's payment
obligation).

ZERO COUPON BONDS

Zero coupon bonds are debt obligations that do not entitle the holder to any
periodic payments of interest either for the entire life of the obligation or
for an initial period after the issuance of the obligation. Such bonds are
issued and traded at a discount from their face amounts. The amount of the
discount varies depending on such factors as the time remaining until maturity
of the bonds, prevailing interest rates, the liquidity of the security, and the
perceived credit quality of the issuer. The market prices of zero coupon bonds
generally are more volatile than the market prices of securities that pay
interest periodically and are likely to respond to changes in interest rates to
a greater degree than non-zero coupon bonds having similar maturities and
credit quality. In order to satisfy a requirement for qualification as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended (the "Code"), each Fund must distribute each year at least 90% of its
net investment income, including the original issue discount accrued on zero
coupon bonds. Because a Fund investing in zero coupon bonds will not on a
current basis receive cash payments from the issuer in respect of accrued
original issue discount, the Fund may have to distribute cash obtained from
other sources in order to satisfy the 90% distribution requirement under the
Code. Such cash might be obtained from selling other portfolio holdings of the
Fund. In some circumstances, such sales might be necessary in order to satisfy
cash distribution requirements even though investment considerations might
otherwise make it undesirable for the Fund to sell such securities at such
time.

REPURCHASE AGREEMENTS

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

REAL ESTATE INVESTMENT TRUSTS

REITs involve certain unique risks in addition to those risks associated with
investing in the real estate industry in general (such as possible declines in
the value of real estate, lack of availability

5
<PAGE>

of mortgage funds, or extended vacancies of property). Equity REITs may be
affected by changes in the value of the underlying property owned by the REITs,
while mortgage REITs may be affected by the quality of any credit extended.
REITs are dependent upon management skills, are not diversified, and are
subject to heavy cash flow dependency, risks of default by borrowers, and self-
liquidation. REITs are also subject to the possibilities of failing to qualify
for tax-free pass-through of income under the Code and failing to maintain
their exemptions from registration under the 1940 Act.

Investment in REITs involves risks similar to those associated with investing
in small capitalization companies. REITs may have limited financial resources,
may trade less frequently and in a limited volume, and may be subject to more
abrupt or erratic price movements than larger securities.

RULE 144A SECURITIES

Rule 144A securities are privately offered securities that can be resold only
to certain qualified institutional buyers. Rule 144A securities are treated as
illiquid, unless Loomis Sayles has determined, under guidelines established by
the Trust's trustees, that the particular issue of Rule 144A securities is
liquid. Under the guidelines, Loomis Sayles considers such factors as: (1) the
frequency of trades and quotes for a security; (2) the number of dealers
willing to purchase or sell the security and the number of other potential
purchasers; (3) dealer undertakings to make a market in the security; and (4)
the nature of the security and the nature of the marketplace trades in the
security.

FOREIGN CURRENCY TRANSACTIONS

Since investment in securities of foreign issuers will usually involve
currencies of foreign countries, and since a Fund may temporarily hold funds in
bank deposits in foreign currencies during the course of investment programs,
the value of the assets of a Fund as measured in U.S. dollars may be affected
by changes in currency exchange rates and exchange control regulations, and a
Fund may incur costs in connection with conversion between various currencies.

A Fund may enter into forward contracts under two circumstances. First, when
a Fund enters into a contract for the purchase or sale of a security
denominated or traded in a market in which settlement is made in a foreign
currency, it may desire to "lock in" the U.S. dollar price of the security. By
entering into a forward contract for the purchase or sale, for a fixed amount
of dollars, of the amount of foreign currency involved in the underlying
transactions, the Fund will be able to protect itself against a possible loss
resulting from an adverse change in the relationship between the U.S. dollar
and the subject foreign currency during the period between the date on which
the investment is purchased or sold and the date on which payment is made or
received.

Second, when Loomis Sayles believes that the currency of a particular country
may suffer a substantial decline against another currency, it may enter into a
forward contract to sell, for a fixed amount of another currency, the amount of
the first currency approximating the value of some or all of the Fund's
portfolio investments denominated in the first currency. The precise matching
of the forward contract amounts and the value of the securities involved will
not generally be possible since the future value of such securities in a
currency will change as a consequence of market movements in the value of those
investments between the date the forward contract is entered into and the date
it matures.

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<PAGE>

The Funds generally will not enter into forward contracts with a term of
greater than one year.

Options on foreign currencies are similar to forward contracts, except that
one party to the option (the holder) is not contractually bound to buy or sell
the specified currency. Instead, the holder has discretion whether to
"exercise" the option and thereby require the other party to buy or sell the
currency on the terms specified in the option. Options transactions involve
transaction costs and, like forward contract transactions, involve the risk
that the other party may default on its obligations (if the options are not
traded on an established exchange) and the risk that expected movements in the
relative value of currencies may not occur, resulting in an imperfect hedge or
a loss to the Fund.

Each Fund, in conjunction with its transactions in forward contracts,
options, and futures, will maintain in a segregated account with its custodian
liquid assets with a value, marked to market on a daily basis, sufficient to
satisfy the Fund's outstanding obligations under such contracts, options, and
futures.

OPTIONS

An option entitles the holder to receive (in the case of a call option) or to
sell (in the case of a put option) a particular security at a specified
exercise price. An "American style" option allows exercise of the option at any
time during the term of the option. A "European style" option allows an option
to be exercised only at the end of its term. Options may be traded on or off an
established securities exchange.

If the holder of an option wishes to terminate its position, it may seek to
effect a closing sale transaction by selling an option identical to the option
previously purchased. The effect of the purchase is that the previous option
position will be canceled. A Fund will realize a profit from closing out an
option if the price received for selling the offsetting position is more than
the premium paid to purchase the option; the Fund will realize a loss from
closing out an option transaction if the price received for selling the
offsetting option is less than the premium paid to purchase the option.

The use of options involves risks. One risk arises because of the imperfect
correlation between movements in the price of options and movements in the
price of the securities that are the subject of the hedge. A Fund's hedging
strategies will not be fully effective if such imperfect correlation occurs.

Price movement correlation may be distorted by illiquidity in the options
markets and the participation of speculators in such markets. If an
insufficient number of contracts are traded, commercial users may not deal in
options because they do not want to assume the risk that they may not be able
to close out their positions within a reasonable amount of time. In such
instances, options market prices may be driven by different forces than those
driving the market in the underlying securities, and price spreads between
these markets may widen. The participation of speculators in the market
enhances its liquidity. Nonetheless, the trading activities of speculators in
the options markets may create temporary price distortions unrelated to the
market in the underlying securities.

An exchange-traded option may be closed out only on an exchange that
generally provides a liquid secondary market for an option of the same series.
If a liquid secondary market for an

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<PAGE>

exchange-traded option does not exist, it might not be possible to effect a
closing transaction with respect to a particular option, with the result that
the Fund would have to exercise the option in order to accomplish the desired
hedge. Reasons for the absence of a liquid secondary market on an exchange
include the following: (i) there may be insufficient trading interest in
certain options; (ii) restrictions may be imposed by an exchange on opening
transactions or closing transactions or both; (iii) trading halts, suspensions,
or other restrictions may be imposed with respect to particular classes or
series of options or underlying securities; (iv) unusual or unforeseen
circumstances may interrupt normal operations on an exchange; (v) the
facilities of an exchange or the Options Clearing Corporation or other clearing
organization may not at all times be adequate to handle current trading volume;
or (vi) one or more exchanges could, for economic or other reasons, decide or
be compelled at some future date to discontinue the trading of options (or a
particular class or series of options), in which event the secondary market on
that exchange (or in that class or series of options) would cease to exist,
although outstanding options on that exchange that had been issued by the
Options Clearing Corporation as a result of trades on that exchange would
continue to be exercisable in accordance with their terms.

The successful use of options depends in part on the ability of Loomis Sayles
to forecast correctly the direction and extent of interest rate, stock price,
or currency value movements within a given time frame. To the extent interest
rates, stock prices, or currency values move in a direction opposite to that
anticipated, a Fund may realize a loss on the hedging transaction that is not
fully or partially offset by an increase in the value of portfolio securities.
In addition, whether or not interest rates or the relevant stock price or
relevant currency values move during the period that the Fund holds options
positions, the Fund will pay the cost of taking those positions (i.e.,
brokerage costs). As a result of these factors, the Fund's total return for
such period may be less than if it had not engaged in the hedging transaction.

An over-the-counter option (an option not traded on an established exchange)
may be closed out only with the other party to the original option transaction.
While the Fund will seek to enter into over-the-counter options only with
dealers who agree to or are expected to be capable of entering into closing
transactions with the Fund, there can be no assurance that the Fund will be
able to liquidate an over-the-counter option at a favorable price at any time
prior to its expiration. Accordingly, the Fund might have to exercise an over-
the-counter option it holds in order to achieve the intended hedge. Over-the-
counter options are not subject to the protections afforded purchasers of
listed options by the Options Clearing Corporation or other clearing
organizations.

Income earned by a Fund from its hedging activities will be treated as
capital gain and, if not offset by net recognized capital losses incurred by
the Fund, will be distributed to shareholders in taxable distributions.
Although gain from options transactions may hedge against a decline in the
value of a Fund's portfolio securities, that gain, to the extent not offset by
losses, will be distributed in light of certain tax considerations and will
constitute a distribution of that portion of the value preserved against
decline.

In accordance with Commodity and Futures Exchange Commission Rule 4.5, each
of the Funds that may engage in futures transactions, including without
limitation futures and options on futures, will use futures transactions solely
for bona fide hedging purposes or will limit its investment in futures
transactions for other bona fide hedging purposes so that the aggregate initial
margin and premiums required to establish such positions will not exceed 5% of
the liquidation value of the Fund, after taking into account unrealized profits
and unrealized losses on any such futures transactions.

8
<PAGE>

SMALL COMPANIES

Investments in companies with relatively small market capitalizations may
involve greater risk than is usually associated with more established
companies. These companies often have limited product lines, markets, or
financial resources, and they may be dependent upon a relatively small
management group. Their securities may have limited marketability and may be
subject to more abrupt or erratic movements in price than securities of
companies with larger capitalizations or market averages in general. The net
asset values of funds that invest in companies with smaller capitalizations
therefore may fluctuate more widely than market averages.

CALIFORNIA TAX-EXEMPT SECURITIES

The Loomis Sayles California Tax-Free Income Fund typically invests a
substantial portion of its assets in California tax-exempt securities. In
addition to general economic pressures, certain California constitutional
amendments, legislative measures, executive orders, administrative regulations,
and voter initiatives could adversely affect the State of California's ability,
and the ability of local governments (such as counties and cities) within
California, to raise revenues to meet their financial obligations. The
following information is only a brief summary, is not a complete description,
and is based on information drawn from official statements relating to
securities offerings of the State of California that have come to the attention
of the Trust and were available before the date of this Statement of Additional
Information. The Trust has not independently verified the accuracy and
completeness of the information contained in those statements.

As used below, "California Tax-Exempt Securities" includes issues secured by
a direct payment obligation of the State and obligations of other issuers that
rely in whole or in part on State revenues to pay their obligations, the
interest on which, in the opinion of issuer's counsel at the time of issuance,
is exempt from federal income tax and California personal income tax. Property
tax revenues and part of the State's General Fund surplus are distributed to
counties, cities, and their various taxing entities; whether and to what extent
a portion of the State's General Fund will be so distributed in the future is
unclear.

Overview. After suffering through a severe recession, since the start of 1994
California's economy has been on a steady recovery. Employment has grown by
more than 1,000,000 since 1994.

The recession seriously affected State tax revenues and caused an increase in
expenditures for health and welfare programs. As a result, from the late 1980s
until 1992-93, the State experienced recurring budget deficits. The State
accumulated a budget deficit of about $2.8 billion at its peak on June 30,
1993. A further consequence of the large budget imbalances was to require the
State to use a series of external borrowings to meet its cash needs. Due to the
improved California economy, however, the State's finances also have improved.
The State's cash position also improved, and no external borrowings occurred
over the end of the last five fiscal years. The State Department of Finance
estimates a balance in the budget reserve at June 30, 2000 of about $7.2
billion. The final 2000-2001 Budget Act projects a balance in the reserve at
June 30, 2001 of almost $1.8 billion. Although the State's strong economy is
producing record revenues to the State government, the State's budget continues
to be under stress from mandated spending on education, a rising prison
population, and social needs of a growing population with many immigrants.
These factors that limit State spending growth also put pressure on local
governments. There can be no assurances that, if economic conditions weaken or
other conditions intercede, the State will not experience budget deficits in
the future.

9
<PAGE>

In the early 1990s, the ratings on the State's long-term general obligation
bonds were reduced from the "AAA" ratings that existed before the recession.
Beginning in 1996, the three major rating agencies raised their ratings of the
State's general obligation bonds, which have been assigned ratings of "AA" by
Standard & Poor's Ratings Group, "Aa2" by Moody's Investors Services, Inc., and
"AA" by Fitch IBCA, Inc.

State Appropriations Limit. Subject to certain exceptions, the State is
subject to an annual appropriations limit imposed by its Constitution on
"proceeds of taxes." Various expenditures, including but not limited to debt
service on certain bonds and appropriations for qualified capital outlay
projects, are not included in the appropriations limit.

ISSUES AFFECTING LOCAL GOVERNMENTS AND SPECIAL DISTRICTS

Proposition 13. Certain California Tax-Exempt Securities may be obligations
of issuers that rely in whole or in part on ad valorem real property taxes for
revenue. In 1978, California voters approved Proposition 13, which limits ad
valorem real property taxes and restricts the ability of taxing entities to
increase property tax and other revenues. With certain exceptions, the maximum
ad valorem real property tax is limited to 1% of the value of real property.
The value of real property may be adjusted annually for inflation at a rate not
exceeding 2% per year, or reduced to reflect declining value, and may also be
adjusted when there is a change in ownership or new construction with respect
to the property. Constitutional challenges to Proposition 13 to date have been
unsuccessful.

The State, in response to the significant reduction in local property tax
revenues as a result of the passage of Proposition 13, enacted legislation to
provide local government with increased expenditures from the General Fund.
This post-Proposition 13 fiscal relief has ended.

Proposition 62. This initiative placed further restrictions on the ability of
local governments to raise taxes and allocate approved tax revenues. Although
some of the California Courts of Appeal held that parts of Proposition 62 were
unconstitutional, the California Supreme Court has upheld Proposition 62's
requirement that special taxes be approved by a two-thirds vote of the voters
voting in an election on the issue. This decision may invalidate other taxes
that have been imposed by local governments in California and make it more
difficult for local governments to raise taxes.

Proposition 218. This initiative places additional and substantial
limitations on the ability of California local governments to impose or raise
various taxes, assessments, charges, and fees by requiring voter approval of
such items. In addition, Proposition 218 clarified the right of local voters to
reduce taxes, fees, assessments, or charges. Proposition 218 does not affect
the State's ability to levy or collect taxes.

Propositions 98 and 111. These initiatives changed the State appropriations
limit and State funding of public education below the university level by
guaranteeing K-14 schools a minimum share of General Fund revenues. The
initiatives also require that the State establish a prudent reserve fund for
public education.

Appropriations Limit. Local governmental entities are also subject to annual
appropriations limits. If a local government's revenues in any year exceed its
limit, the excess must be returned to the public through a revision of tax
rates or fee schedules over the following two years.

10
<PAGE>

Conclusion. The effect of these Constitutional and statutory changes and of
budget developments on the ability of California issuers to pay interest and
principal on their obligations remains unclear, and it may depend upon whether
a particular bond is a general obligation or limited obligation bond (limited
obligation bonds being generally less affected). There is no assurance that any
California issuer will make full or timely payments of principal or interest or
remain solvent. For example, in December 1994, Orange County filed for
bankruptcy.

ADDITIONAL ISSUES

Mortgages and Deeds of Trust. The Fund may invest in issues that are secured
in whole or in part by mortgages or deeds of trust on real property. California
law limits the remedies of a creditor secured by a mortgage or a deed of trust,
which may result in delays in the flow of revenues to, and debt service paid
by, an issuer.

Lease Financings. Some local governments and districts finance certain
activities through lease arrangements. It is uncertain whether such lease
financings are debt that requires voter approval. In August 1998, the
California Supreme Court issued a ruling that upheld the legality of these
financing methods.

Seismic Risk. It is impossible to predict the time, location, or magnitude of
a major earthquake or its effect on the California economy. In January 1994, a
major earthquake struck Los Angeles, causing significant damage to structures
and facilities in a four-county area. The possibility exists that another such
earthquake could create a major dislocation of the California economy.

11
<PAGE>

MANAGEMENT OF THE TRUST

The trustees of the Trust supervise the affairs of the Trust and have the
other responsibilities assigned to them by the laws of The Commonwealth of
Massachusetts. The trustees and officers of the Trust, their ages, and their
principal occupations during the past five years are as follows:

CHARLES J. FINLAYSON (61)--Trustee. 66 Till Rock Lane, Norwell,
Massachusetts. Retired. Formerly Vice President, General Counsel, Secretary,
and Director of Loomis Sayles and Vice President and Secretary of the Trust.

TIMOTHY J. HUNT (69)--Trustee. 26 Dennett Road, Marblehead, Massachusetts.
Trustee of Loomis Sayles & Company Pension and Profit Sharing Plan. Formerly
Vice President and Director of Fixed Income Research for Loomis Sayles.

DANIEL J. FUSS (67)--President. Vice Chairman and Director, Loomis Sayles.

ROBERT J. BLANDING (53)--Executive Vice President. 465 First Street West,
Sonoma, California. President, Chairman, Director, and Chief Executive Officer,
Loomis Sayles.

MARK W. HOLLAND (51)--Treasurer. Vice President and Director of Loomis
Sayles.

SHEILA M. BARRY (55)--Secretary and Compliance Officer. Assistant General
Counsel and Vice President, Loomis Sayles. Formerly Senior Counsel and Vice
President, New England Funds, L.P.

CHRISTOPHER R. ELY (45)--Vice President. Vice President, Loomis Sayles.
Formerly Senior Vice President and Portfolio Manager, Keystone Investment
Management Company, Inc.

QUENTIN P. FAULKNER (61)--Vice President. Vice President, Loomis Sayles.

PHILIP C. FINE (51)--Vice President. Vice President, Loomis Sayles. Formerly
Vice President and Portfolio Manager, Keystone Investment Management Company,
Inc.

KATHLEEN C. GAFFNEY (39)--Vice President. Vice President, Loomis Sayles.

MICHAEL J. MILLHOUSE (45)--Vice President. 227 W. Monroe Street, Chicago,
Illinois. Vice President and Director, Loomis Sayles.

KENT P. NEWMARK (62)--Vice President. 555 California Street, San Francisco,
California. Vice President, Managing Partner, and Director, Loomis Sayles.

ROBERT K. PAYNE (58)--Vice President. 555 California Street, San Francisco,
California. Vice President, Loomis Sayles.

CRAIG SMITH ( )--Vice President. 227 W. Monroe Street, Chicago, Illinois.
Vice President, Loomis Sayles.

12
<PAGE>

DAVID L. SMITH (47)--Vice President. Vice President, Loomis Sayles. Formerly
Vice President and Portfolio Manager, Keystone Investment Management Company,
Inc.

FREDERICK E. SWEENEY, JR. (40)--Vice President. Vice President, Loomis
Sayles.

ANTHONY J. WILKINS (58)--Vice President. Vice President and Director, Loomis
Sayles.

Previous positions during the past five years with Loomis Sayles are omitted
if not materially different.

Except as indicated above, the address of each trustee and officer of the
Trust affiliated with Loomis Sayles is One Financial Center, Boston,
Massachusetts. The Trust pays no compensation to its officers or to the
trustees listed above who are directors, officers, or employees of Loomis
Sayles. Each trustee who is not a director, officer, or employee of Loomis
Sayles is compensated at the rate of $10,000 per annum.

13
<PAGE>

COMPENSATION TABLE

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000

<TABLE>
<CAPTION>
(5)
TOTAL
(3) (4) COMPENSATION
(2) PENSION OR ESTIMATED FROM TRUST AND
(1) AGGREGATE RETIREMENT BENEFITS ANNUAL FUND COMPLEX*
NAME OF PERSON, COMPENSATION ACCRUED AS PART OF BENEFITS UPON PAID TO
POSITION FROM TRUST FUND EXPENSES RETIREMENT TRUSTEE
--------------- ------------ ------------------- ------------- --------------
<S> <C> <C> <C> <C>
Charles J. Finlayson,
Trustee................ $ N/A N/A $
Timothy J. Hunt,
Trustee................ $ N/A N/A $
</TABLE>
-----------------
* No Trustee receives any compensation from any mutual funds affiliated with
Loomis Sayles, other than the Trust.

As of September 30, 2000, the officers and trustees of the Trust do not
beneficially own any shares of the Funds.

The Trust and Loomis Sayles each have adopted a code of ethics under Rule
17j-1 of the 1940 Act. These codes of ethics permit the personnel of these
entities to invest in securities, including securities that the Funds may
purchase or hold.

14
<PAGE>

PRINCIPAL HOLDERS

The following table provides information on the principal holders of each
Fund. A principal holder is a person who owns of record or beneficially 5% or
more of a Fund's outstanding securities. Information provided in this table is
as of , 2000

<TABLE>
<CAPTION>
PERCENTAGE OF
SHAREHOLDER ADDRESS SHARES HELD
----------- ------- -------------

<S> <C> <C>
LOOMIS SAYLES CALIFORNIA TAX-FREE INCOME FUND
First American Trust Company, 400 First American Center
Paul M. Davis for Peter Davis Nashville, TN 37237-0402
Koeppel Family Trust 1445 Cabellero Road
Arcadia, CA 91006
Joseph E. & Ellen Mueth TTEEs, 225 S. Lake Avenue
Mueth Family Trust Arcadia, CA 91006
Camille Basha & Connie Vitale JTTE 1015 San Marino Avenue
San Marino, CA 91108
Connie Vitale & Camille Basha JTTE 1015 San Marino Avenue
San Marino, CA 91108
First American Trust Company, 400 First American Center
Paul M. Davis for Peter Davis Family Nashville, TN 37237-0402
LOOMIS SAYLES CORE FIXED INCOME FUND
Asbestos Workers Local #84 36 East Warner Road
Pension Plan Akron, OH 44319
Crane Plastics Employee Retirement P. O. Box 1047
Plan
Columbus, OH 43216
Sheet Metal Workers 2075 West Big Beaver #520
Local Union No. 292 Annuity Fund Troy, MI 48084
City of Livonia Retiree Health and 33000 Civic Center Drive
Disability Benefits Plan and Trust Livonia, MI 48154-3097
Southeastern Michigan Chapter, NECA 25180 Lahser Road
P.O. Box 385
Southfield, MI 48037
Sign, Pictorial & Display Union 30700 Telegraph Road
Local #591 AFL-CIO Display Group Suite 2400
Supplemental Pension Fund Bingham Farms, MI 48025
Ironworkers Local #340 1533 North Woodward Avenue
Supplementary Retirement Fund Suite 300
Bloomfield Hills, MI 48304
The Wagnalls Memorial Foundation 150 E. Columbus Street
Lithopolis, OH 43136
Michigan Peer Review Organization 40600 Ann Arbor Road
Suite 200
Plymouth, MI 48170-4495
</TABLE>

15
<PAGE>

<TABLE>
<CAPTION>
PERCENTAGE OF
SHAREHOLDER ADDRESS SHARES HELD
----------- ------- -------------
<S> <C> <C>
LOOMIS SAYLES FIXED INCOME FUND
Marsh & McLennan Companies Defined 1166 Avenue of the
Americas
Benefit Plan Remainder Unitrust A New York, NY 10036-2774
Boehringer Ingelheim Corporation 900 Ridgebury Road
Ridgefield, CT 06887
New Hampshire Charitable Foundation 37 Pleasant Street
Concord, NJ 03301-4005
Painters & Allied Trades 25 Colgate Road
District Council #35 Pension Fund Roslindale, MA 02131-1105
LOOMIS SAYLES HIGH YIELD FIXED INCOME
Blue Cross Blue Shield of 100 Summer Street
Massachusetts, Inc. Boston, MA 02110
Retirement Income Trust
Pomona College 550 N. College Avenue
Claremont, CA 91711
Energen Corporation 210 Sixth Avenue,
Retirement Income Plan North Birmingham, AL 35203
Worcester Polytechnic Institute 100 Institute Road
Worcester, MA 01609
LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND
Trustees of Clark University 950 Main Street
Worcester, MA 01610
LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
Peabody Essex Museum East India Square
Salem, MA 01970
Wichita State University 1845 Fairmount
Endowment Association Wichita, KS 67260
BOST & CO. Mellon Bank, N.A.
Mutual Funds Department
P.O. Box 3198
Pittsburgh, PA 15230-3198
Jupiter & Co. P.O. Box 9130
FPG 90
Boston, MA 02117-9130
Local 522 Pension Fund 139-16 91st Avenue
Jamaica, NY 11435
Braintree Contributory Retirement 71 Cleveland Avenue
System
Braintree, MA 02184
FMB Trust Company P.O. Box 1596
Baltimore, MD 21203-1596
</TABLE>

16
<PAGE>

<TABLE>
<CAPTION>
PERCENTAGE OF
SHAREHOLDER ADDRESS SHARES HELD
----------- ------- -------------
<S> <C> <C> <C>
LOOMIS SAYLES PROVIDENT FUND
Brockton Health Corp. Endowment 680 Centre Street
Brockton, MA 02402-3395
Brockton Hospital Pension Trust 680 Centre Street
Brockton, MA 02402-3395
Jewish Federation of Rhode Island 130 Sessions Street
Providence, RI 02906
LOOMIS SAYLES SMALL COMPANY GROWTH FUND
St. Luke's Charitable Health Trust 2999 N. 44th Street
Suite 530
Phoenix, AR 85018
Massachusetts Water Resources 100 First Avenue
Authority
Employees Retirement Plan Charlestown Navy Yard
Charlestown, MA 02129
Town of Plymouth 11 Lincoln Street
Contributory Retirement System Plymouth, MA 02360
Westfield Contributory Retirement 59 Court Street
System
P.O. Box 106
Westfield, MA 01086-0106
Community Foundation for 333 West Fort Street
Southeastern Michigan Suite 2010
Detroit, MI 48226
Kollmorgen Retirement Plans 1601 Trapelo Road
Waltham, MA 02451
Wilmington Trust Co. Custodian for P.O. Box 8882
WBD Stroud TTEE under Article 4th of Wilmington, DE 19899-
the 8882
Will of Joan M. Stroud for WBD
Stroud II
Barbara Ann Kamanos Cancer Institute 110 East Warren Avenue
Detroit, MI 48201
Detroit Institute of Arts Founders 5200 Woodward Avenue
Society
Detroit, MI 48202
LOOMIS SAYLES SMALL COMPANY VALUE FUND
Hudson-Webber Foundation 333 West Fort Street
Detroit, MI 48226
Westfield Contributory Retirement 59 Court Street
System
P.O. Box 106
Westfield, MA 01086-0106
Medford Retirement Board 85 George P. Hassett
Drive
Medford, MA 02155
</TABLE>

To the extent that any shareholder listed above beneficially owns more than
25% of a Fund, it may be deemed to "control" such Fund within the meaning of
the 1940 Act.

17
<PAGE>

INVESTMENT ADVISORY AND OTHER SERVICES

Advisory Agreements. Under each advisory agreement, Loomis Sayles manages the
investment and reinvestment of the assets of the relevant Fund and generally
administers its affairs, subject to supervision by the Board of Trustees of the
Trust. Loomis Sayles furnishes, at its own expense, all necessary office space,
facilities and equipment, services of executive and other personnel of the
Funds, and certain administrative services. For these services, the advisory
agreements provide that each Fund shall pay Loomis Sayles a monthly investment
advisory fee at the following annual percentage rates of the particular Fund's
average daily net assets:

<TABLE>
<CAPTION>
FUND RATE
---- ----
<S> <C>
Loomis Sayles California Tax-Free Income Fund.............................. .50%
Loomis Sayles Core Fixed Income Fund....................................... .35%
Loomis Sayles Fixed Income Fund............................................ .50%
Loomis Sayles High Yield Fixed Income Fund................................. .60%
Loomis Sayles Intermediate Duration Fixed Income Fund...................... .40%
Loomis Sayles Investment Grade Fixed Income Fund........................... .40%
Loomis Sayles Provident Fund............................................... .50%
Loomis Sayles Small Company Growth Fund.................................... .75%
Loomis Sayles Small Company Value Fund..................................... .75%
</TABLE>

During the periods shown below, pursuant to the advisory agreements described
above, Loomis Sayles received the following amount of investment advisory fees
from each Fund (before voluntary fee reductions and expense assumptions) and
bore the following amounts of fee reductions and expense assumptions for each
Fund:
<TABLE>
<CAPTION>
FISCAL PERIOD FISCAL YEAR ENDED FISCAL YEAR ENDED
ENDED 9/30/98* 9/30/99 9/30/00
-------------------- ---------------------- --------------------
FEE WAIVERS FEE WAIVERS FEE WAIVERS
ADVISORY AND EXPENSE ADVISORY AND EXPENSE ADVISORY AND EXPENSE
FUND FEES ASSUMPTIONS FEES ASSUMPTIONS FEES ASSUMPTIONS
---- -------- ----------- ---------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Loomis Sayles California
Tax-Free Income Fund... $ 66,039 $90,006 $ 100,301 $109,084
Loomis Sayles Core Fixed
Income Fund............ 69,281 85,691 105,164 105,013
Loomis Sayles Fixed
Income Fund............ 774,225 51,944 1,389,093 0
Loomis Sayles High Yield
Fixed Income Fund...... 147,356 91,510 147,861 98,741
Loomis Sayles
Intermediate Duration
Fixed Income Fund...... 29,959 58,465 53,685 84,976
Loomis Sayles Investment
Grade Fixed Income
Fund................... 301,182 77,026 535,492 55,557
Loomis Sayles Provident
Fund................... 102,595 77,607 115,794 81,013
Loomis Sayles Small
Company Growth Fund.... N/A N/A 27,118 45,778
Loomis Sayles Small
Company Value Fund..... N/A N/A 57,381 31,229
</TABLE>
-----------------
* The fiscal year end for each of the Funds changed to September 30 in 1998.

18
<PAGE>

During the periods shown below, Loomis Sayles was reimbursed for
administrative services to the Fund in the following amounts:

<TABLE>
<CAPTION>
MARCH 7, 2000-
FUND SEPT 30, 2000
---- ---------------
<S> <C>

</TABLE>

The Trust pays the compensation of its trustees who are not directors,
officers, or employees of Loomis Sayles or its affiliates (other than
registered investment companies); registration, filing, and other fees in
connection with requirements of regulatory authorities; all charges and
expenses of its custodian and transfer agent; the charges and expenses of its
independent accountants; all brokerage commissions and transfer taxes in
connection with portfolio transactions; all taxes and fees payable to
governmental agencies; the cost of any certificates representing shares of the
Funds; the expenses of meetings of the shareholders and trustees of the Trust;
the charges and expenses of the Trust's legal counsel; interest on any
borrowings by the Funds; the cost of services, including services of counsel,
required in connection with the preparation of, and the cost of printing, the
Trust's registration statements and Prospectuses, including amendments and
revisions thereto, annual, semiannual, and other periodic reports of the Trust,
and notices and proxy solicitation material furnished to shareholders or
regulatory authorities, to the extent that any such materials relate to the
Trust or its shareholders; and the Trust's expenses of bookkeeping, accounting,
auditing, and financial reporting, including related clerical expenses.

Under each advisory agreement, if the total ordinary business expenses of a
Fund or the Trust as a whole for any fiscal year exceed the lowest applicable
limitation (based on percentage of average net assets or income) prescribed by
any state in which the shares of the Fund or the Trust are qualified for sale,
Loomis Sayles shall pay such excess. Loomis Sayles will not be required to
reduce its fee or pay such expenses to an extent or under circumstances that
would result in any Fund's inability to qualify as a regulated investment
company under the Code. The term "expenses" is defined in the advisory
agreements or in relevant state regulations and excludes brokerage commissions,
taxes, interest, distribution-related expenses, and extraordinary expenses.

As described in the Prospectuses, Loomis Sayles has agreed to certain
additional, voluntary arrangements to limit Fund expenses. These arrangements
may be modified or terminated by Loomis Sayles at any time.

Each advisory agreement provides that it will continue in effect for two
years from its date of execution and thereafter from year to year if its
continuance is approved at least annually (i) by the Board of Trustees of the
Trust or by vote of a majority of the outstanding voting securities of the
relevant Fund and (ii) by vote of a majority of the Trustees who are not
"interested persons" of the Trust, as that term is defined in the 1940 Act,
cast in person at a meeting called for the purpose of voting on such approval.
Any amendment to an advisory agreement must be approved by vote of a majority
of the outstanding voting securities of the relevant Fund and by vote of a
majority of the Trustees who are not such interested persons, cast in person at
a meeting called for the purpose of voting on such approval. Each agreement may
be terminated without penalty by vote of the Board of Trustees or by vote of a
majority of the outstanding voting securities of the relevant Fund, upon sixty
days' written notice, or by Loomis Sayles upon ninety days' written notice, and
each terminates

19
<PAGE>

automatically in the event of its assignment. In addition, each agreement will
automatically terminate if the Trust or the Fund shall at any time be required
by Loomis Sayles to eliminate all reference to the words "Loomis" and "Sayles"
in the name of the Trust or the Fund, unless the continuance of the agreement
after such change of name is approved by a majority of the outstanding voting
securities of the relevant Fund and by a majority of the Trustees who are not
interested persons of the Trust or Loomis Sayles.

Each advisory agreement provides that Loomis Sayles shall not be subject to
any liability in connection with the performance of its services thereunder in
the absence of willful misfeasance, bad faith, gross negligence, or reckless
disregard of its obligations and duties.

Loomis Sayles acts as investment adviser or subadviser to Nvest Star Value
Fund, Nvest Strategic Income Fund, Nvest Star Advisers Fund, New England Star
Small Cap Fund, and Nvest Balanced Fund, which are series of Nvest Funds Trust
I, a registered open-end management investment company; New England High Income
Fund, a series of New England Funds Trust II, a registered, open-end management
investment company; the Loomis Sayles Small Cap Series of New England Zenith
Fund, a registered open-end management investment company; and Loomis Sayles
Funds, a registered open-end management investment company. Loomis Sayles also
provides investment advice to certain other open-end management investment
companies and numerous other corporate and fiduciary clients.

Loomis, Sayles & Company, L.P. is a registered investment adviser whose
origins date back to 1926. Loomis, Sayles & Company, L.P. is a limited
partnership whose general partner, Loomis, Sayles & Company, Inc., is a wholly-
owned subsidiary of Nvest Holdings, Inc.. ("Nvest Holdings"). Nvest Holdings is
a wholly-owned subsidiary of Nvest Companies, L.P. ("Nvest Companies"). Nvest
Companies' general partner, CDCAM North America, LLC ("CDCAM NA LLC"), is a
wholly-owned subsidiary of CDC Asset Management North America Corporation
("CDCAM NA"). CDCAM NA is the sole limited partner of Nvest Companies. CDCAM NA
is a wholly-owned subsidiary of CDC Asset Management S.A., a French company
("CDCAM"). CDCAM is majority-owned by CDC Finance and indirectly owned, through
CDC Finance, Caisse Nationale des Caisses D'Epargne and CNP Assurances, by
Caisse des Depots et Consignations ("CDC"). CDC was created by French
Government legislation and currently is supervised by the French Parliament.

The eighteen principal subsidiary or affiliated asset management firms of
Nvest Companies, collectively, have more than $130 billion in assets under
management or administration as of September 30, 2000.

Certain officers and trustees of the Trust also serve as officers, directors,
and trustees of other investment companies and clients advised by Loomis
Sayles. The other investment companies and clients sometimes invest in
securities in which the Funds also invest. If a Fund and such other investment
companies or clients desire to buy or sell the same portfolio securities at the
same time, purchases and sales may be allocated, to the extent practicable, on
a pro rata basis in proportion to the amounts desired to be purchased or sold
for each. It is recognized that in some cases the practices described in this
paragraph could have a detrimental effect on the price or amount of the
securities that a Fund purchases or sells. In other cases, however, it is
believed that these practices may benefit the Funds. It is the opinion of the
trustees that the desirability of retaining Loomis Sayles as adviser for the
Funds outweighs the disadvantages, if any, that might result from these
practices.

20
<PAGE>

Custodial Arrangements. State Street Bank and Trust Company ("State Street
Bank"), Boston, Massachusetts 02102, is the Trust's custodian. As such, State
Street Bank holds in safekeeping certificated securities and cash belonging to
the Funds and, in such capacity, is the registered owner of securities held in
book entry form belonging to the Funds. Upon instruction, State Street Bank
receives and delivers cash and securities of the Funds in connection with Fund
transactions and collects all dividends and other distributions made with
respect to Fund portfolio securities. State Street Bank also maintains certain
accounts and records of the Funds and calculates the total net asset value,
total net income, and net asset value per share of each Fund on a daily basis.

Independent Accountants. The Trust's independent accountants are .
conducts an annual audit of the Trust's financial statements, assists
in the preparation of the Funds' federal and state income tax returns, and
consults with the Funds as to matters of accounting and federal and state
income taxation. The information under the caption "Financial Highlights"
included in the Prospectuses has been so included, and the financial statements
incorporated by reference herein from the Funds' 2000 Annual Report have been
so incorporated, in reliance on the reports of , given on the authority of
as experts in auditing and accounting.

21
<PAGE>

PORTFOLIO TRANSACTIONS AND BROKERAGE

In placing orders for the purchase and sale of portfolio securities for each
Fund, Loomis Sayles always seeks the best price and execution. Transactions in
unlisted securities are carried out through broker-dealers who make the primary
market for such securities unless, in the judgment of Loomis Sayles, a more
favorable price can be obtained by carrying out such transactions through other
brokers or dealers.

Loomis Sayles selects only brokers or dealers that it believes are
financially responsible, will provide efficient and effective services in
executing, clearing, and settling an order, and will charge commission rates
that, when combined with the quality of the foregoing services, will produce
best price and execution for the transaction. This does not necessarily mean
that the lowest available brokerage commission will be paid. However, the
commissions are believed to be competitive with generally prevailing rates.
Loomis Sayles will use its best efforts to obtain information as to the general
level of commission rates being charged by the brokerage community from time to
time and will evaluate the overall reasonableness of brokerage commissions paid
on transactions by reference to such data. In making such evaluation, all
factors affecting liquidity and execution of the order, as well as the amount
of the capital commitment by the broker in connection with the order, are taken
into account. The Funds will not pay a broker a commission at a higher rate
than otherwise available for the same transaction in recognition of the value
of research services provided by the broker or in recognition of the value of
any other services provided by the broker that do not contribute to the best
price and execution of the transaction.

Receipt of research services from brokers may sometimes be a factor in
selecting a broker that Loomis Sayles believes will provide best price and
execution for a transaction. These research services include not only a wide
variety of reports on such matters as economic and political developments,
industries, companies, securities, portfolio strategy, account performance,
daily prices of securities, stock and bond market conditions and projections,
asset allocation, and portfolio structure, but also meetings with management
representatives of issuers and with other analysts and specialists. Although it
is not possible to assign an exact dollar value to these services, they may, to
the extent used, tend to reduce Loomis Sayles' expenses. Such services may be
used by Loomis Sayles in servicing other client accounts and in some cases may
not be used with respect to the Funds. Receipt of services or products other
than research from brokers is not a factor in the selection of brokers.

22
<PAGE>

The following tables set forth, for the 1999 and 2000 fiscal years and the
1998 fiscal period (January 1, 1998 through September 30, 1998), respectively,
(1) the aggregate dollar amount of brokerage commissions paid on portfolio
transactions during such period, (2) the dollar amount of transactions on which
brokerage commissions were paid during such period that were directed to
brokers providing research services ("directed transactions"), and (3) the
dollar amount of commissions paid on directed transactions during such period.
Funds not listed in a table did not pay brokerage commissions during the
relevant period.

FISCAL PERIOD ENDED SEPTEMBER 30, 1998
(JANUARY 1, 1998--SEPTEMBER 30, 1998)

FISCAL YEAR ENDED SEPTEMBER 30, 1999

<TABLE>
<CAPTION>
(1) (3)
AGGREGATE (2) COMMISSIONS
BROKERAGE DIRECTED ON DIRECTED
FUND COMMISSIONS TRANSACTIONS TRANSACTIONS
---- ----------- ------------ ------------
<S> <C> <C> <C>
Loomis Sayles Provident
Fund................... $119,910 $4,680,724 $6,324
Loomis Sayles Small
Company Growth Fund.... $ 7,859 $ 72,715 $ 120
Loomis Sayles Small
Company Value Fund..... $408,352 $ 129,210 $ 330
</TABLE>

FISCAL YEAR ENDED SEPTEMBER 30, 2000

<TABLE>
<CAPTION>
(1) (3)
AGGREGATE (2) COMMISSIONS
BROKERAGE DIRECTED ON DIRECTED
FUND COMMISSIONS TRANSACTIONS TRANSACTIONS
---- ----------- ------------ ------------
<S> <C> <C> <C>
Loomis Sayles Provident
Fund...................
Loomis Sayles Small
Company Growth Fund....
Loomis Sayles Small
Company Value Fund.....
</TABLE>

23
<PAGE>

The table below presents information regarding the securities of the Funds'
regular broker-dealers that were held by the Funds as of September 30, 2000.

<TABLE>
<CAPTION>
FUND MARKET VALUE % OF ASSETS
---- ------------ -----------
<S> <C> <C>
Loomis Sayles California Tax-Free Income Fund
Lehman Brothers Inc. ............................... $
Loomis Sayles Core Fixed Income Fund
Lehman Brothers Inc. ............................... $
Salomon Brothers.................................... $
Loomis Sayles Intermediate Duration Fixed Income Fund
Lehman Brothers Inc. ............................... $
Bear Stearns........................................ $
Nomura Asset Security Corp.......................... $
Morgan Stanley...................................... $
Loomis Sayles Investment Grade Fixed Income Fund
Donaldson Lufkin Jenrette........................... $
Lehman Brothers Inc. ............................... $
Salomon Brothers.................................... $
Loomis Sayles Small Company Value Fund
Federated Investors Inc. ........................... $
</TABLE>

24
<PAGE>

DESCRIPTION OF THE TRUST

The Trust, registered with the SEC as a diversified open-end management
investment company, is organized as a Massachusetts business trust under the
laws of Massachusetts by an Agreement and Declaration of Trust (the
"Declaration of Trust") dated December 23, 1993.

The Declaration of Trust currently permits the trustees to issue an unlimited
number of full and fractional shares of each series. Each share of each Fund
represents an equal proportionate interest in such Fund with each other share
of that Fund and is entitled to a proportionate interest in the dividends and
distributions from that Fund. The shares of each Fund do not have any
preemptive rights. Upon termination of any Fund, whether pursuant to
liquidation of the Trust or otherwise, shareholders of that Fund are entitled
to share pro rata in the net assets of that Fund available for distribution to
shareholders. The Declaration of Trust also permits the trustees to charge
shareholders directly for custodial, transfer agency, and servicing expenses.

The assets received by each Fund for the issue or sale of its shares and all
income, earnings, profits, losses, and proceeds therefrom, subject only to the
rights of creditors, are allocated to, and constitute the underlying assets of,
that Fund. The underlying assets are segregated and are charged with the
expenses with respect to that Fund and with a share of the general expenses of
the Trust. Any general expenses of the Trust that are not readily identifiable
as belonging to a particular Fund are allocated by or under the direction of
the trustees in such manner as the trustees determine to be fair and equitable.
While the expenses of the Trust are allocated to the separate books of account
of each Fund, certain expenses may be legally chargeable against the assets of
all Funds.

The Declaration of Trust also permits the trustees, without shareholder
approval, to subdivide any series of shares or Fund into various classes of
shares with such dividend preferences and other rights as the trustees may
designate. The trustees may also, without shareholder approval, establish one
or more additional separate portfolios for investments in the Trust or merge
two or more existing portfolios. Shareholders' investments in such an
additional or merged portfolio would be evidenced by a separate series of
shares (i.e., a new "Fund").

The Declaration of Trust provides for the perpetual existence of the Trust.
The Declaration of Trust, however, provides that the trustees may terminate the
Trust or any Fund upon written notice to the shareholders.

VOTING RIGHTS

As summarized in the Prospectus, shareholders are entitled to one vote for
each full share held (with fractional votes for each fractional share held) and
may vote (to the extent provided in the Declaration of Trust) on the election
of trustees and the termination of the Trust and on other matters submitted to
the vote of shareholders.

The Declaration of Trust provides that on any matter submitted to a vote of
all Trust shareholders, all Trust shares entitled to vote shall be voted
together irrespective of series or sub-series unless the rights of a particular
series or sub-series would be adversely affected by the vote, in which case a
separate vote of that series or sub-series shall also be required to decide the
question. Also, a separate vote shall be held whenever required by the 1940 Act
or any rule thereunder. Rule 18f-2 under the 1940 Act provides in effect that a
class shall be deemed to be affected by a matter unless it is clear that the
interests of each class in the matter are substantially identical or that the

25
<PAGE>

matter does not affect any interest of such class. On matters affecting an
individual series, only shareholders of that series are entitled to vote.
Consistent with the current position of the SEC, shareholders of all series
vote together, irrespective of series, on the election of trustees and the
selection of the Trust's independent accountants, but shareholders of each
series vote separately on other matters requiring shareholder approval, such as
certain changes in investment policies of that series or the approval of the
investment advisory agreement relating to that series.

There will normally be no meetings of shareholders for the purpose of
electing trustees except that, in accordance with the 1940 Act, (i) the Trust
will hold a shareholders' meeting for the election of trustees at such time as
less than a majority of the trustees holding office have been elected by
shareholders, and (ii) if, as a result of a vacancy on the Board of Trustees,
less than two-thirds of the trustees holding office have been elected by the
shareholders, that vacancy may be filled only by a vote of the shareholders. In
addition, trustees may be removed from office by a written consent signed by
the holders of two-thirds of the outstanding shares and filed with the Trust's
custodian or by a vote of the holders of two-thirds of the outstanding shares
at a meeting duly called for that purpose, which meeting shall be held upon the
written request of the holders of not less than 10% of the outstanding shares.

Upon written request by the holders of shares having a net asset value
constituting 1% of the outstanding shares stating that such shareholders wish
to communicate with the other shareholders for the purpose of obtaining the
signatures necessary to demand a meeting to consider removal of a trustee, the
Trust has undertaken to provide a list of shareholders or to disseminate
appropriate materials (at the expense of the requesting shareholders).

Except as set forth above, the trustees shall continue to hold office and may
appoint successor trustees. Voting rights are not cumulative.

No amendment may be made to the Declaration of Trust without the affirmative
vote of a majority of the outstanding shares of the Trust, except (i) to change
the Trust's name or to cure technical problems in the Declaration of Trust and
(ii) to establish, change, or eliminate the par value of any shares (currently
all shares have no par value).

SHAREHOLDER AND TRUSTEE LIABILITY

Under Massachusetts law shareholders could, under certain circumstances, be
held personally liable for the obligations of the Fund of which they are
shareholders. However, the Declaration of Trust disclaims shareholder liability
for acts or obligations of each Fund and requires that notice of such
disclaimer be given in each agreement, obligation, or instrument entered into
or executed by the Trust or the trustees. The Declaration of Trust provides for
indemnification out of Fund property for all loss and expense of any
shareholder held personally liable for the obligations of the Fund. Thus, the
risk of a shareholder incurring financial loss on account of shareholder
liability is considered remote since it is limited to circumstances in which
the disclaimer is inoperative and the Fund itself would be unable to meet its
obligations.

The Declaration of Trust further provides that the trustees will not be
liable for errors of judgment or mistakes of fact or law. However, nothing in
the Declaration of Trust protects a trustee against any liability to which the
trustee would otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties involved in the conduct
of his office. The By-Laws of the Trust provide for indemnification by the
Trust of the trustees and officers of the

26
<PAGE>

Trust except with respect to any matter as to which any such person did not act
in good faith in the reasonable belief that such action was in or not opposed
to the best interests of the Trust. No officer or trustee may be indemnified
against any liability to the Trust or the Trust's shareholders to which such
person would otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties involved in the conduct
of his office.

HOW TO BUY SHARES

The procedures for purchasing shares of each Fund are summarized in the
Prospectuses under "General Information-How to Purchase Shares."

NET ASSET VALUE

The net asset value of the shares of each Fund is determined by dividing that
Fund's total net assets (the excess of its assets over its liabilities) by the
total number of shares of the Fund outstanding and rounding to the nearest
cent. Such determination is made as of the close of regular trading on the New
York Stock Exchange (generally 4:00 p.m. Eastern time) on each day on which
that Exchange is open for unrestricted trading, and no less frequently than
once daily on each day during which there is sufficient trading in a Fund's
portfolio securities that the value of that Fund's shares might be materially
affected. During the 12 months following the date of this Statement of
Additional Information, the New York Stock Exchange is expected to be closed on
the following weekdays: New Year's Day, Martin Luther King, Jr. Day,
Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day. Equity securities listed on an established
securities exchange or on the Nasdaq National Market System are normally valued
at their last sale price on the exchange where primarily traded or, if there is
no reported sale during the day, and in the case of over-the-counter securities
not so listed, at the closing bid price. Short-term securities with a remaining
maturity of 60 days or less are valued at amortized cost, which approximates
market value. Long-term debt securities are valued by a pricing service, which
determines valuations of normal institutional-size trading units of long-term
debt securities. Such valuations are determined using methods based on market
transactions for comparable securities and on various relationships between
securities that are generally recognized by institutional traders. Other
securities for which current market quotations are not readily available and
all other assets are valued at fair value as determined in good faith by the
Board of Trustees on the basis of dealer-supplied quotations or otherwise,
although the actual calculations may be made by persons acting pursuant to the
direction of the board.

Generally, trading in foreign securities markets is substantially completed
each day at various times prior to the close of regular trading on the New York
Stock Exchange. Occasionally, events affecting the value of foreign fixed
income securities and of equity securities of non-U.S. issuers not traded on a
U.S. exchange may occur between the completion of substantial trading of such
securities for the day and the close of regular trading on the New York Stock
Exchange, which events will not be reflected in the computation of the Fund's
net asset value. If events materially affecting the value of any Fund's
portfolio securities occur during such period, then these securities may be
valued at their fair value as determined in good faith by or in accordance with
procedures approved by the trustees.

27
<PAGE>

SHAREHOLDER SERVICES

OPEN ACCOUNTS

A shareholder's investment in any Fund is automatically credited to an open
account maintained for the shareholder by the Trust. Certificates representing
shares are issued only upon written request to the Trust but are not issued for
fractional shares. Following each transaction in the account, a shareholder
will receive an account statement disclosing the current balance of shares
owned and the details of recent transactions in the account. After the close of
each fiscal year the Trust will send each shareholder a statement providing
federal tax information on dividends and distributions paid to the shareholder
during the year. This should be retained as a permanent record. Shareholders
will be charged a fee for duplicate information.

The open account system permits the purchase of full and fractional shares
and, by making the issuance and delivery of certificates representing shares
unnecessary, eliminates the problems of handling and safekeeping certificates,
and the cost and inconvenience of replacing lost, stolen, mutilated, or
destroyed certificates.

The costs of maintaining the open account system are borne by the Trust, and
no direct charges are made to shareholders. Although the Trust has no present
intention of making such direct charges to shareholders, it reserves the right
to do so. Shareholders will receive notice before any such charges are made.

REDEMPTIONS

The procedures for redemption of Fund shares are summarized in the
Prospectuses under "General Information--How to Redeem Shares."

If a shareholder selects the telephone redemption service in the manner
described in the next paragraph, Fund shares may be redeemed by making a
telephone call directly to the Trust at 888-226-9699. When a telephone
redemption request is received, the proceeds are generally wired to the bank
account previously chosen by the shareholder. Telephone redemption requests
must be received by the Trust prior to the close of regular trading on the New
York Stock Exchange on a day when the Exchange is open for business. Requests
made after that time or on a day when the New York Stock Exchange is not open
for business cannot be accepted by the Trust, and a new request will be
necessary.

In order to redeem shares by telephone, a shareholder either must select this
service when completing the Fund application or must do so subsequently in
writing. When selecting the service, a shareholder must designate a bank
account to which the redemption proceeds should be wired. Any change in the
bank account so designated must be made by furnishing to the Trust a written
request. Telephone redemptions may be made only if an investor's bank is a
member of the Federal Reserve System or has a correspondent bank that is a
member of the System. If the account is with a savings bank, it must have only
one correspondent bank that is a member of the System. The Trust is not
responsible for the authenticity of withdrawal instructions received by
telephone.

The redemption price will be the net asset value per share next determined
after the redemption request and any necessary special documentation are
received by the Trust in proper form. Proceeds resulting from a written
redemption request will normally be mailed to the

28
<PAGE>

shareholder within seven days after receipt of a request in good order.
Telephonic redemption proceeds will normally be wired on the first business day
following receipt of a proper redemption request. In those cases where a
shareholder has recently purchased shares by check and the check was received
less than fifteen days prior to the redemption request, the Fund may withhold
redemption proceeds until the check has cleared.

A redemption constitutes a sale of the shares for federal income tax purposes
on which the investor may realize a long-term or short-term capital gain or
loss. See "Income Dividends, Capital Gain Distributions and Tax Status."

INCOME DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAX STATUS

As described in the Prospectuses under "Dividends and Distributions," it is
the policy of each Fund to pay its shareholders, as dividends, substantially
all net investment income and to distribute annually all net realized capital
gains, if any, after offsetting any capital loss carryovers.

Income dividends and capital gain distributions are payable in full and
fractional shares of the particular Fund based upon the net asset value
determined as of the close of regular trading on the New York Stock Exchange on
the record date for each dividend or distribution. Shareholders, however, may
elect to receive their income dividends or capital gain distributions, or both,
in cash. The election may be made at any time by submitting a written request
directly to the Trust. In order for a change to be in effect for any dividend
or distribution, it must be received by the Trust on or before the record date
for such dividend or distribution.

As required by federal law, detailed federal tax information will be
furnished to each shareholder for each calendar year on or before January 31 of
the succeeding year.

The Internal Revenue Service ("IRS") requires any Fund to withhold 31% of any
redemption proceeds and of any income dividends and capital gain distributions
in the following situations:

. If you do not provide a correct, certified taxpayer identification number
to the Fund.

. If the IRS notifies the Fund that you have underreported your income in
the past and thus are subject to backup withholding.

. If you fail to certify to the Fund that you are not subject to such
backup withholding.

Each Fund intends to qualify each year as a regulated investment company
under Subchapter M of the Code. In order to qualify as such and to qualify for
the favorable tax treatment accorded regulated investment companies and their
shareholders, each Fund must, among other things, (i) derive at least 90% of
its gross income from dividends, interest, payments with respect to certain
securities loans, gains from the sale of securities or foreign currencies, or
other income (including, but not limited to, gains from options, futures, or
forward contracts) derived with respect to its business of investing in such
stock, securities, or currencies; (ii) distribute with respect to each taxable
year at least 90% of the sum of its taxable net investment income, its tax-
exempt income, and the excess, if any, of net short-term capital gains over net
long-term capital losses for such year; and (iii) diversify its holdings so
that at the end of each fiscal quarter (a) at least 50% of the value of its
assets is invested in cash, U.S. Government securities, securities of other
regulated investment companies, and other securities of issuers that represent,
with respect to each issuer, no more than 5% of the value of the Fund's assets
and 10% of the outstanding voting securities of such issue and

29
<PAGE>

(b) not more than 25% of the value of its assets is invested in the securities
(other than those of the U.S. government or other regulated investment
companies) of any one issuer or of two or more issuers that the Fund controls
and that are engaged in the same, similar, or related trades and businesses. To
the extent it qualifies for treatment as a regulated investment company, a Fund
will not be subject to federal income tax on income paid to its shareholders in
the form of dividends or capital gain distributions.

An excise tax at the rate of 4% will be imposed on the excess, if any, of
each Fund's "required distribution" over its actual distributions in any
calendar year. Generally, the "required distribution" is 98% of the Fund's
ordinary income for the calendar year plus 98% of its capital gain net income
recognized during the one-year period ending on October 31 (or December 31, if
the Fund so elects) plus undistributed amounts from prior years. Each Fund
intends to make distributions sufficient to avoid imposition of the excise tax.
Distributions declared by a Fund during October, November, or December to
shareholders of record on a date in any such month and paid by the Fund during
the following January will be treated for federal tax purposes as paid by the
Fund and received by shareholders on December 31 of the year in which they were
declared.

Shareholders of each Fund will be subject to federal income taxes on
distributions made by the Fund (other than "exempt-interest dividends" paid by
the Loomis Sayles California Tax-Free Income Fund, as described in its
Prospectus) whether received in cash or additional shares of the Fund.
Distributions by each Fund of net income and short-term capital gains, if any,
will be taxable to shareholders as ordinary income. Distributions designated by
a Fund as deriving from net gains on securities held for more than one year
will be taxable to shareholders as long-term capital gains, without regard to
how long the shareholder has held shares of the Fund. Long-term capital gains
will generally be taxed at a federal income tax rate of 20% to shareholders who
are individuals. However, for taxable years beginning after December 31, 2000,
the maximum capital gain tax rates for capital assets (including Fund shares)
held by a non-corporate sharesholder for more than 5 years will be 8% and 18%
(rather than 10% and 20%). The 18% rate applies only to assets the holding
period for which begins after December 31, 2000 (including by way of an
election to mark the asset to the market, and to pay the tax on any gain
thereon, as of January 2, 2001). The mark-to-market election may be
disadvantageous from a federal tax perspective, and shareholders should consult
their tax advisers before making such an election.

Dividends and distributions on a Fund's shares are generally subject to
federal income tax as described herein to the extent they do not exceed the
Fund's realized income and gains, even though such dividends and distributions
may economically represent a return of a particular shareholder's investment.
Such distributions are likely to occur for shares purchased at a time when a
Fund's net asset value reflects gains that are either unrealized or realized
but not distributed. Such realized gains may be required to be distributed even
when a Fund's net asset value also reflects unrealized losses.

Each Fund may be eligible to make an election under Section 853 of the Code
so that its shareholders will be able to claim a credit or deduction on their
income tax returns for, and will be required to treat as part of the amounts
distributed to them, their pro rata portion of qualified taxes paid by the
relevant Fund to foreign countries. The ability of shareholders of the Fund to
claim a foreign tax credit is subject to certain limitations imposed by Section
904 of the Code, which in general limits the amount of foreign tax that may be
used to reduce a shareholder's U.S. tax liability to that amount of U.S. tax
that would be imposed on the amount and type of income for which the foreign
tax was paid. In addition, a shareholder must hold shares of the Fund (without
protection from risk of loss) on the ex-dividend date and for at least 16 days
during the 30-day period

30
<PAGE>

beginning on the date that is 15 days before the ex-dividend date in order to
be eligible to claim a foreign credit for his or her share of these foreign
taxes. A shareholder who for U.S. income tax purposes claims a foreign tax
credit in respect of Fund distributions may not claim a deduction for foreign
taxes paid by the Fund, regardless of whether the shareholder itemizes
deductions. Also, under Section 63 of the Code, no deduction for foreign taxes
may be claimed by shareholders who do not itemize deductions on their federal
income tax returns. It should also be noted that a tax-exempt shareholder, like
other shareholders, will be required to treat as part of the amounts
distributed to it a pro rata portion of the income taxes paid by the Fund to
foreign countries. However, that income will generally be exempt from United
States taxation by virtue of such shareholder's tax-exempt status, and such a
shareholder will not be entitled to either a tax credit or a deduction with
respect to such income.

Each Fund's transactions, if any, in foreign currencies are likely to result
in a difference between the Fund's book income and taxable income. This
difference may cause a portion of the Fund's income distributions to constitute
a return of capital for tax purposes or require the Fund to make distributions
exceeding book income to avoid excise tax liability and to qualify as a
regulated investment company.

Investment by a Fund in "passive foreign investment companies" could subject
the Fund to U.S. federal income tax or other charge on the proceeds from the
sale of its investment in such a company; however, this tax can be avoided by
making an election to mark such investments to market annually or to treat the
passive foreign investment company as a "qualified electing fund."

If a Fund engages in hedging transactions, including hedging transactions in
options, futures contracts, and straddles, or other similar transactions, it
will be subject to special tax rules (including constructive sale, mark-to-
market, straddle, wash sale, and short sale rules), the effect of which may be
to accelerate income to the Fund, defer losses to the Fund, cause adjustments
in the holding periods of the Fund's securities, or convert short-term capital
losses into long-term capital losses. These rules could therefore affect the
amount, timing, and character of distributions to shareholders. Each Fund will
endeavor to make any available elections pertaining to such transactions in a
manner believed to be in the best interests of the Fund.

A Fund's investment in securities issued at a discount and certain other
obligations will (and investments in securities purchased at a discount may)
require the Fund to accrue and distribute income not yet received. In such
cases, a Fund may be required to sell assets (including when it is not
advantageous to do so) to generate the cash necessary to distribute as
dividends to its shareholders all of its income and gains and therefore to
eliminate any tax liability at the Fund level.

Generally a Fund may designate dividends eligible for the dividends-received
deduction only to the extent that such dividends are derived from dividends
paid to the Fund with respect to which the Fund could have taken the dividends-
received deduction if it had been a regular corporation. The dividends-received
deduction is not available to non-corporate shareholders, Subchapter S
corporations, or corporations that do not hold their shares for at least 46
days during the 90-day period beginning on the date that is 45 days before the
ex-dividend date. The dividends-received deduction also is not available with
respect to dividends derived from a Fund's investment in foreign securities or
REITs.

Redemptions of each Fund's shares are taxable events, and, accordingly,
shareholders may realize gains and losses on these transactions. In general,
any gain realized upon a taxable disposition of

31
<PAGE>

shares will be treated as long-term capital gain if the shares have been held
for more than one year. Otherwise the gain on the sale or redemption of Fund
shares will be treated as short-term capital gain. However, if a shareholder
sells Fund shares at a loss within six months after purchasing the shares, the
loss will be disallowed, in the case of the Loomis Sayles California Tax-Free
Income Fund, to the extent of any exempt-interest dividends received by the
shareholder and will be treated as a long-term capital loss, in the case of all
the Funds, to the extent of any long-term capital gain distributions received
by the shareholder. Furthermore, no loss will be allowed on the sale of Fund
shares to the extent the shareholder acquired other shares of the same Fund
within 30 days prior to the sale of the loss shares or 30 days after such sale.

The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and regulations currently in effect. For the complete
provisions, reference should be made to the pertinent Code sections and
regulations. The Code and regulations are subject to change by legislative or
administrative action.

Dividends and distributions also may be subject to foreign, state, and local
taxes. Shareholders are urged to consult their tax advisers regarding specific
questions as to federal, state, foreign, or local taxes.

The foregoing discussion relates solely to U.S. federal income tax law. Non-
U.S. investors should consult their tax advisers concerning the tax
consequences of ownership of shares of the Fund, including the possibility that
distributions may be subject to a 30% United States withholding tax (or a
reduced rate of withholding provided by treaty). The IRS recently revised its
regulations affecting the application to foreign investors of the back-up
withholding tax rules. The new regulations will generally be effective for
payments made on or after January 1, 2001 (although transition rules will
apply). In some circumstances, the new rules will increase the certification
and filing requirements imposed on foreign investors in order to qualify for
exemption from the 31% back-up withholding tax and for reduced withholding tax
rates under income tax treaties. Foreign investors in each Fund should consult
their advisers with respect to the potential application of these new
regulations.

32
<PAGE>

FINANCIAL STATEMENTS

The financial statements of each Fund included in the Trust's 2000 Annual
Report, filed with the SEC on November , 2000, are incorporated by reference
to such Report.

CALCULATION OF YIELD AND TOTAL RETURN

Yield. Yield with respect to a Fund will be computed by dividing the Fund's
net investment income for a recent 30-day period by the maximum offering price
(reduced by any undeclared earned income expected to be paid shortly as a
dividend) on the last trading day of that period. Net investment income will
reflect amortization of any market value premium or discount of fixed income
securities (except for obligations backed by mortgages or other assets) and may
include recognition of a pro rata portion of the stated dividend rate of
dividend-paying portfolio securities. The Funds' yields will vary from time to
time depending upon market conditions, the composition of the Funds' portfolios
and operating expenses of the Trust allocated to each Fund. These factors, and
possible differences in the methods used in calculating yield, should be
considered when comparing a Fund's yield to yields published for other
investment companies and other investment vehicles. Yield should also be
considered relative to changes in the value of the Fund's shares and to the
relative risks associated with the investment objectives and policies of the
Fund.

At any time in the future, yields may be higher or lower than past yields,
and there can be no assurance that any historical results will continue.

Investors in the Funds are specifically advised that the net asset value per
share of each Fund may vary, just as yields for each Fund may vary. An
investor's focus on yield to the exclusion of the consideration of the value of
shares of a Fund may result in the investor's misunderstanding the total return
he or she may derive from that Fund.

Total Return. Total Return with respect to a Fund is a measure of the change
in value of an investment in such Fund over the period covered and assumes that
any dividends or capital gain distributions are reinvested immediately, rather
than paid to the investor in cash. The formula for total return used herein
includes four steps: (1) adding to the total number of shares purchased through
a hypothetical $1,000 investment in the Fund all additional shares that would
have been purchased if all dividends and distributions paid or distributed
during the period had been immediately reinvested; (2) calculating the value of
the hypothetical initial investment of $1,000 as of the end of the period by
multiplying the total number of shares owned at the end of the period by the
net asset value per share on the last trading day of the period; (3) assuming
redemption at the end of the period; and (4) dividing the resulting account
value by the initial $1,000 investment.

PERFORMANCE COMPARISONS

Yield and Total Return. Each Fund may from time to time include its total
return information in advertisements or in information furnished to present or
prospective shareholders. Each of the Loomis Sayles California Tax-Free Income
Fund, the Loomis Sayles Core Fixed Income Fund, the Loomis Sayles Fixed Income
Fund, the Loomis Sayles High Yield Fixed Income Fund, the Loomis Sayles
Intermediate Duration Fixed Income Fund, and the Loomis Sayles Investment Grade
Fixed Income Fund may from time to time include the yield and/or total return
of its shares in advertisements or information furnished to present or
prospective shareholders. Each Fund may

33
<PAGE>

from time to time include in advertisements or information furnished to present
or prospective shareholders (i) the ranking of performance figures relative to
such figures for groups of mutual funds categorized by Lipper Analytical
Services, Inc. or Standard & Poor's Micropal, Inc. as having similar investment
objectives, (ii) the rating assigned to the Fund by Morningstar, Inc. based on
the Fund's risk-adjusted or straight performance relative to other mutual funds
in its broad investment class, and/or (iii) the ranking of performance figures
relative to such figures for mutual funds in its general investment category as
determined by CDA/Weisenberger's Management Results.

Volatility. Each Fund may quote various measures of its volatility and
benchmark correlation. In addition, a Fund may compare these measures to those
of other funds and indices. Measures of volatility seek to compare a Fund's
historical share price fluctuations or total returns to those of a benchmark.
Measures of benchmark correlation indicate the extent to which a Fund's returns
change in ways similar to those of the benchmark. All measures of volatility
and correlation are calculated using averages of historical data. Each Fund may
utilize charts and graphs to present its volatility and average annual total
return. Each Fund may also discuss or illustrate examples of interest rate
sensitivity.

Lipper Analytical Services, Inc. distributes mutual fund rankings monthly.
The rankings are based on total return performance calculated by Lipper,
generally reflecting changes in net asset value adjusted for reinvestment of
capital gains and income dividends. They do not reflect deduction of any sales
charges. Lipper rankings cover a variety of performance periods, including, but
not limited to, year-to-date, 1-year, 5-year, and 10-year performance. Lipper
classifies mutual funds by [investment objective and asset category.]

Standard & Poor's Micropal, Inc. distributes mutual fund rankings weekly and
monthly. The rankings are based upon performance calculated by Standard &
Poor's Micropal, generally reflecting changes in net asset value that can be
adjusted for the reinvestment of capital gains and dividends. If deemed
appropriate by the user, performance can also reflect deductions for sales
charges. Standard & Poor's Micropal rankings cover a variety of performance
periods, including, but not limited to, year-to-date, 1-year, 5-year, and 10-
year performance. Standard & Poor's Micropal classifies mutual funds by
investment objective and asset category.

Morningstar, Inc. distributes mutual fund ratings monthly. The ratings are
divided into five groups: highest, above average, neutral, below average and
lowest. They represent a fund's historical risk/reward ratio relative to other
funds in its broad investment class as determined by Morningstar, Inc.
Morningstar ratings cover a variety of performance periods, including 3-year,
5-year, 10-year, and overall performance. The performance factor for the
overall rating is a weighted-average return performance (if available)
reflecting deduction of expenses and sales charges. Performance is adjusted
using quantitative techniques to reflect the risk profile of the fund. The
ratings are derived from a purely quantitative system that does not utilize the
subjective criteria customarily employed by rating agencies such as Standard &
Poor's and Moody's Investors Service, Inc.

Standard & Poor's Select Funds are funds selected by Standard & Poor's that
have demonstrated above-average absolute and volatility-adjusted returns
relative to funds with the same investment style, along with having investment
management attributes that are consistent with the fund's investment style.
Select Fund designation is based on a six-month moving average of three years
of absolute and volatility-adjusted performance. A Select Fund designation does
not address the market risk, credit risk, or counterparty risk of a fund, nor
does it address a fund's suitability as a counterparty or obligor.

34
<PAGE>

Value Line Investment Survey is an investment advisory service that ranks
approximately 1,700 stocks for "timeliness" and safety. Using a computerized
model based on earnings momentum, Value Line projects which stocks will have
the best or worst relative price performance over the next 6 to 12 months. In
addition, each stock is assigned a risk rating, which identifies the volatility
of a stock's price behavior relative to the market average. The service also
ranks all major industry groups for timeliness.

CDA/Weisenberger's Management Results publishes mutual fund rankings and is
distributed monthly. The rankings are based entirely on total return calculated
by Weisenberger for periods such as year-to-date, 1-year, 3-year, 5-year, and
10-year. Mutual funds are ranked in general categories (e.g., international
bond, international equity, municipal bond, and maximum capital gain).
Weisenberger rankings do not reflect deduction of sales charges or fees.

Performance information may also be used to compare the performance of the
Fund to certain widely acknowledged standards or indices for stock and bond
market performance, such as those listed below.

Consumer Price Index. The Consumer Price Index, published by the U.S. Bureau
of Labor Statistics, is a statistical measure of changes, over time, in the
prices of goods and services in major expenditure groups.

Dow Jones Industrial Average. The Dow Jones Industrial Average is a market
value-weighted and unmanaged index of 30 large industrial stocks.

Lehman Brothers Five Year Municipal Bond Index. The Lehman Brothers Five Year
Municipal Bond Index is computed from prices on approximately 6,100 bonds that
have a maturity range of 4-6 years. The Index consists of approximately 23%
revenue bonds, 24% general obligation bonds, 41% insured bonds, and 12% pre-
refunded bonds. Index returns have not been reduced for ongoing management and
operating expenses applicable to mutual funds investments.

Lehman Brothers Government/Corporate Bond Index. The Lehman Brothers
Government/Corporate Bond Index is an index of publicly issued U.S. Treasury
obligations, debt obligations of U.S. government agencies (excluding mortgage-
backed securities), fixed-rate, non-convertible, investment-grade corporate
debt securities, and U.S. dollar-denominated, SEC-registered non-convertible
debt issued by foreign governmental entities or international agencies used as
a general measure of the performance of fixed-income securities.

Lehman Brothers Government/Corporate Intermediate Bond Index. The Lehman
Brothers Government/Corporate Intermediate Bond Index consists of those bonds
held within the Lehman Brothers Government/Corporate Bond Index that have an
average maturity of 1-10 years.

Lehman Brothers 1-3 Year Government Index. The Index consists of fixed rate
debt issues of the U.S. government or its agencies rated investment grade or
higher with at least one year maturity and an outstanding par value of at least
$100 million for U.S. government issues.

Lehman Brothers Government Bond Index. The Lehman Brothers Government Bond
Index is composed of all publicly issued, non-convertible, domestic debt of the
U.S. government or any of its agencies or quasi-federal corporations, or
corporate debt guaranteed by the U.S. government.

35
<PAGE>

Lehman Brothers Municipal Bond Index. The Lehman Brothers Municipal Bond
Index is computed from the prices of approximately 21,000 bonds consisting of
roughly 30% revenue bonds, 30% government obligation bonds, 27% insured bonds,
and 13% pre-refunded bonds.

MSCI-EAFE Index. The MSCI-EAFE Index contains over 1,000 stocks from 20
different countries with Japan (approximately 50%), the United Kingdom, France,
and Germany being the most heavily weighted.

MSCI-EAFE ex-Japan Index. The MSCI-EAFE ex-Japan Index consists of all stocks
contained in the MSCI-EAFE Index, other than stocks from Japan.

Merrill Lynch Domestic Master Index. The Merrill Lynch Domestic Master Index
is 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.

Merrill Lynch High Yield Master Index. The Merrill Lynch High Yield Master
Index consists of fixed-rate, coupon-bearing bonds with an outstanding par that
is greater than or equal to $50 million, a maturity range greater than or equal
to one year, and a rating of less than BBB/Baa3 but not in default.

Russell 2000 Index. The Russell 2000 Index is comprised of the 2,000 smallest
companies included in the Russell 3000 Index, which represents approximately
98% of the U.S. equity market.

Salomon Brothers World Government Bond Index. The Salomon Brothers World
Government Bond Index includes a broad range of institutionally traded fixed-
rate government securities issued by the national governments of 17 countries,
including the United States. The index generally excludes floating- or
variable-rate bonds, securities aimed principally at non-institutional
investors (such as U.S. Savings Bonds), and private-placement type securities.

Standard & Poor's/Barra Growth Index. The Standard & Poor's/Barra Growth
Index is constructed by ranking the securities in the S&P 500 by price-to-book
ratio and including the securities with the highest price-to-book ratios that
represent approximately half of the market capitalization of the S&P 500.

Standard & Poor's/Barra Value Index. The Standard & Poor's/Barra Value Index
is constructed by ranking the securities in the S&P 500 by price-to-book ratio
and including the securities with the lowest price-to-book ratios that
represent approximately half of the market capitalization of the S&P 500.

Standard & Poor's ("S&P") Mid-Cap 400 Index. The S&P Mid-Cap 400 Index
consists of 400 domestic stocks chosen for market size, liquidity, and industry
group representation. It is market-weighted (stock price times shares
outstanding) with each stock affecting the index in proportion to its value.
The index is comprised of industrial, utility, financial, and transportation
stocks, in size order.

Standard & Poor's 500 Composite Stock Price Index (The "S&P 500"). The S&P
500 is a market value-weighted and unmanaged index showing the changes in the
aggregate market value of 500 stocks relative to the base period 1941-43. The
S&P 500 is composed almost entirely of common stocks of companies listed on the
New York Stock Exchange, although the common stocks of a few companies listed
on the American Stock Exchange or traded over-the-counter are included.

36
<PAGE>

The 500 companies represented include 400 industrial, 60 transportation, and 40
financial services concerns. The S&P 500 represents about 80% of the market
value of all issues traded on the New York Stock Exchange. The S&P 500 is the
most common index for the overall U.S. stock market.

From time to time, articles about the Funds regarding performance, rankings,
and other characteristics of the Funds may appear in publications including,
but not limited to, the publications included in Appendix A. In particular,
some or all of these publications may publish their own rankings or performance
reviews of mutual funds, including the Funds. References to or reprints of such
articles may be used in the Funds' promotional literature. References to
articles regarding personnel of Loomis Sayles who have portfolio management
responsibility may also be used in the Funds' promotional literature. For
additional information about the Funds' advertising and promotional literature,
see Appendix B.

37
<PAGE>

PERFORMANCE DATA*

The manner in which total return and yield of the Funds will be calculated
for public use is described above. The table summarizes the calculation of
total return and yield for the Funds, where applicable, (i) for the one-year
period ended September 30, 2000, (ii) for the three-year period ended September
30, 2000, (iii) for the five-year period ended September 30, 2000, (iv) from
modified inception through September 30, 2000, and (v) from actual inception
(as listed below) through September 30, 2000.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------
CURRENT FOR THE FOR THE FOR THE FROM
SEC ONE-YEAR THREE-YEAR FIVE-YEAR MODIFIED FROM ACTUAL
YIELD PERIOD PERIOD PERIOD INCEPTION** INCEPTION***
AT ENDED ENDED ENDED THROUGH THROUGH
FUND 9/30/00 9/30/00 9/30/00 9/30/00 9/30/00 9/30/00
---- ------- -------- ---------- --------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
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.....
</TABLE>
-----------------

* Performance (for other than the one-year period for the Loomis Sayles
Fixed Income Fund) would have been lower if a portion of the management fee
had not been waived by Loomis Sayles. In the absence of this limitation,
actual yield and total return would have been as follows:

38
<PAGE>

<TABLE>
<S> <C>
Loomis Sayles Core Fixed Income Fund......................... April 30, 1996
Loomis Sayles Fixed Income Fund.............................. January 31, 1995
Loomis Sayles High Yield Fixed Income Fund................... June 30, 1996
Loomis Sayles Intermediate Duration Fixed Income Fund........ January 31, 1998
Loomis Sayles Small Company Growth Fund...................... May 31, 1999
</TABLE>

*** Actual Inception Dates:

<TABLE>
<S> <C>
Loomis Sayles California Tax-Free Income Fund................ June 1, 1995
Loomis Sayles Core Fixed Income Fund......................... April 24, 1996
Loomis Sayles Fixed Income Fund.............................. January 17, 1995
Loomis Sayles High Yield Fixed Income Fund................... June 5, 1996
Loomis Sayles Intermediate Duration Fixed Income Fund........ January 28, 1998
Loomis Sayles Investment Grade Fixed Income Fund............. July 1, 1994
Loomis Sayles Provident Fund................................. October 1, 1995
Loomis Sayles Small Company Growth Fund...................... May 7, 1999
Loomis Sayles Small Company Value Fund....................... June 30, 1999
</TABLE>

39
<PAGE>

APPENDIX A

PUBLICATIONS AND OUTLETS THAT MAY CONTAIN FUND INFORMATION

ABC and affiliates Financial News Network
Adam Smith's Money World Financial Planning
America Online Financial Planning on Wall
Anchorage Daily News Street
Atlanta Constitution Financial Research Corp.
Atlanta Journal Financial Services Week
Arizona Republic Financial World
Austin American Statesman Fitch Insights
Baltimore Sun Forbes
Bank Investment Marketing Fort Worth Star-Telegram
Barron's Fortune
Bergen County Record (NJ) Fox Network and affiliates
Bloomberg Business News Fund Action
Bond Buyer Fund Decoder
Boston Business Journal Global Finance
Boston Globe (the) Guarantor
Boston Herald Hartford Courant
Broker World Houston Chronicle
Business Radio Network INC
Business Week Indianapolis Star
CBS and affiliates Individual Investor
CDA Investment Technologies Institutional Investor
CFO International Herald Tribune
Changing Times Internet
Chicago Sun Times Investment Advisor
Chicago Tribune Investment Company Institute
Christian Science Monitor Investment Dealers Digest
Christian Science Monitor News Investment Profiles
Service Investment Vision
Cincinnati Enquirer Investor's Daily
Cincinnati Post IRA Reporter
CNBC Journal of Commerce
CNN Kansas City Star
Columbus Dispatch KCMO (Kansas City)
CompuServe KOA-AM (Denver)
Dallas Morning News LA Times
Dallas Times-Herald Leckey, Andrew (syndicated
Denver Post column)
Des Moines Register Life Association News
Detroit Free Press Lifetime Channel
Donoghues Money Fund Report Miami Herald
Dorfman, Dan (syndicated column) Milwaukee Sentinel
Dow Jones News Service Money Magazine
Economist Money Maker
FACS of the Week Money Management Letter
Fee Adviser Morningstar
Mutual Fund Market News

40
<PAGE>

Mutual Funds Magazine San Jose Mercury
National Public Radio Seattle Post-Intelligencer
National Underwriter Seattle Times
NBC and affiliates Securities Industry Management
New England Business Smart Money
New England Cable News St. Louis Post Dispatch
New Orleans Times-Picayune St. Petersburg Times
New York Daily News Standard & Poor's Outlook
New York Times Standard & Poor's Stock Guide
Newark Star Ledger Stanger's Investment Advisor
Newsday Stockbroker's Register
Newsweek Strategic Insight
Nightly Business Report Tampa Tribune
Orange County Register Time
Orlando Sentinel Tobias, Andrew (syndicated
Palm Beach Post column)
Pension World Toledo Blade
Pensions and Investments UP
Personal Investor US News and World Report
Philadelphia Inquirer USA Today
Porter, Sylvia (syndicated USA TV Network
column) Value Line
Portland Oregonian Wall Street Journal
Prodigy Wall Street Letter
Public Broadcasting Service Wall Street Week
Quinn, Jane Bryant (syndicated Washington Post
column) WBZ
Registered Representative WBZ-TV
Research Magazine WCVB-TV
Resource WEEI
Reuters WHDH
Rocky Mountain News Worcester Telegram
Rukeyser's Business (syndicated World Wide Web
column) Worth Magazine
Sacramento Bee WRKO
San Diego Tribune
San Francisco Chronicle
San Francisco Examiner

41
<PAGE>

APPENDIX B

ADVERTISING AND PROMOTIONAL LITERATURE

A total return figure or modified inception date that more accurately
compares a Fund's performance with other measures of investment return such as
data published by Lipper Analytical Services, Inc. or with the performance of
any other index.

Hypothetical calculations of a Fund's aggregate total return for a period of
time assuming the investment of a particular investment in shares of a Fund and
assuming the reinvestment of all dividends and distributions.

Discussions and/or illustrations of the potential investment goals of a
prospective investor, investment management strategies, techniques, policies or
investment suitability of a Fund (such as value investing, market timing,
dollar cost averaging, asset allocation, constant ratio transfer, automatic
account rebalancing, and the advantages and disadvantages of investing in tax-
deferred and taxable investments).

Discussions of economic conditions, the relationship between sectors of the
economy and the economy as a whole, various securities markets, the effects of
inflation, sources of information, economic models, forecasts, data services
utilized, consulted or considered in the course of providing advisory or other
services, as well as historical performance of various asset classes, including
but not limited to, stocks, bonds and Treasury securities.

A summary of the substance of information contained in shareholder reports
(including the investment composition of a Fund by investment, industry sector
and country weighting), as well as the views of Loomis Sayles as to current
market, economic, trade and interest rate trends, legislative, regulatory and
monetary developments, investment strategies and related matters believed to be
of relevance to a Fund. This information may be updated as of a current date
(such as the date of the performance data, if any).

Charts, graphs or drawings which compare the investment objective, return
potential, relative stability and/or growth possibilities of the Funds and/or
other mutual funds, or illustrate the potential risks and rewards of investment
in various investment vehicles, including but not limited to, stocks, bonds,
Treasury securities and shares of a Fund and/or other mutual funds.

A discussion of certain attributes or benefits to be derived by an investment
in a Fund and/or other mutual funds, shareholder profiles and hypothetical
investor scenarios, timely information on financial management, tax and
retirement planning and investment alternatives to certificates of deposit and
other financial instruments.

Inclusion of symbols, headlines or other material which highlight or
summarize the information discussed in more detail therein.

Specific and general references to industry statistics regarding 401(k) and
retirement plans including historical information and industry trends and
forecasts regarding the growth of assets, numbers of plans, funding vehicles,
participants, sponsors, and other demographic data relating to plans,
participants and sponsors, third party and other administrators, benefits
consultants, and firms with whom Loomis Sayles may or may not have a
relationship.

Specific and general reference to comparative ratings, rankings, and other
forms of evaluation as well as statistics regarding the Funds as 401(k) or
retirement plan funding vehicles produced by industry authorities, research
organizations, and publications.

42
<PAGE>

In addition, Loomis Sayles Investment Trust's advertising and promotional
material may include, but is not limited to, discussions of the following
information:

Loomis Sayles Investment Trust's participation in wrap fee and no
transaction fee programs

Loomis Sayles Investment Trust's and Loomis, Sayles & Company, L.P.'s
website

Loomis Sayles Publications, including fact sheets for each Fund

Characteristics of Loomis Sayles, including the number and locations of
its offices, its investment practices and clients, and assets under
management

Specific and general investment philosophies, strategies, processes, and
techniques

Specific and general sources of information, economic models, forecasts,
and data services utilized, consulted, or considered in the course of
providing advisory or other services

Industry conferences at which Loomis Sayles participates

Current capitalization, levels of profitability and other financial
information

Identification of portfolio managers, researchers, economists,
principals, and other staff members and employees and descriptions of
Loomis Sayles' resources devoted to such staff

The specific credentials of the above individuals, including but not
limited to previous employment, current and past positions, titles and
duties performed, industry experience, educational background and degrees,
awards, and honors

The types of clients Loomis Sayles advises and specific identification
of, and general reference to, current individual, corporate, and
institutional clients, including pension and profit sharing plans

Current and historical statistics relating to:

--total dollar amount of assets managed

--Loomis Sayles assets managed in total and by Fund

--the growth of assets

--asset types managed

Loomis Sayles tag line--"Listening Harder, Delivering More"--and statements
that and examples of how Loomis Sayles Investment Trust listens to its clients
and works hard to deliver results that exceed their expectations.

43
<PAGE>

PART C. OTHER INFORMATION

ITEM 23. EXHIBITS

(a) Agreement and Declaration of Trust. (1)

(b) By-Laws. (1)

(d)(1) Investment Advisory Agreement between the Registrant, on behalf of its
Loomis Sayles California Tax-Free Income Fund, and Loomis, Sayles &
Company, L.P. to be filed by amendment.

(d)(2) Investment Advisory Agreement between the Registrant, on behalf of its
Loomis Sayles Core Fixed Income Fund, and Loomis, Sayles & Company, L.P.
to be filed by amendment.

(d)(3) Investment Advisory Agreement between the Registrant, on behalf of its
Loomis Sayles Provident Fund and Loomis, Sayles & Company, L.P. to be
filed by amendment.

(d)(4) Investment Advisory Agreement between the Registrant, on behalf of its
Loomis Sayles Fixed Income Fund, and Loomis, Sayles & Company, L.P. to be
filed by amendment.

(d)(5) Investment Advisory Agreement between the Registrant, on behalf of its
Loomis Sayles High Yield Fixed Income Fund, and Loomis, Sayles & Company,
L.P. to be filed by amendment.

(d)(6) Investment Advisory Agreement between the Registrant, on behalf of its
Loomis, Sayles Intermediate Duration Fund, and Loomis, Sayles & Company,
L.P. to be filed by amendment.

(d)(7) Investment Advisory Agreement between the Registrant, on behalf of its
Loomis Sayles Investment Grade Fixed Income Fund, and Loomis, Sayles &
Company, L.P. to be filed by amendment.

(d)(8) Investment Advisory Agreement between the Registrant, on behalf of its
Loomis Sayles Small Company Growth Fund, and Loomis, Sayles & Company,
L.P. to be filed by amendment.

(d)(9) Investment Advisory Agreement between the Registrant, on behalf of its
Loomis Sayles Small Company Value Fund, and Loomis, Sayles & Company,
L.P. to be filed by amendment.

(e) Not Applicable.

(f) Not Applicable.

(g)(1) Custodian Agreement. (1)

(g)(2) Form of Letter Agreement between the Registrant and State Street Bank and
Trust Company

-1-
<PAGE>

relating to the applicability of the Custodian Agreement and Transfer
Agency and Service Agreement to Loomis Sayles Small Company Growth Fund.
(4)

(g)(3) Form of Letter Agreement between the Registrant and State Street Bank and
Trust Company relating to the applicability of the Custodian Agreement
and Transfer Agency and Service Agreement to Loomis Sayles Small Company
Value Fund. (4)

(g)(4) Form of Letter Agreement relating to Custodian Agreement for Loomis
Sayles California Tax-Free Income Fund. (4)

(g)(5) Form of Letter Agreement relating to Custodian Agreement for Loomis
Sayles Core Fixed Income Fund, Loomis Sayles High Yield Fixed Income
Fund, and Loomis Sayles Intermediate Duration Fixed Income Fund. (4)

(g)(6) Form of Letter Agreement relating to Custodian Agreement for Loomis
Sayles Provident Fund to be filed by amendment.

(h)(1) Form of Transfer Agency Agreement. (1)

(h)(2) See Exhibit (g)(2) for Form of Letter Agreement between the Registrant
and State Street Bank and Trust Company relating to the applicability of
the Transfer Agency and Service Agreement to Loomis Sayles Small Company
Growth Fund.

(h)(3) See Exhibit (g)(3) for Form of Letter Agreement between the Registrant
and State Street Bank and Trust Company relating to the applicability of
the Transfer Agency and Service Agreement to Loomis Sayles Small Company
Value Fund.

(h)(4) Transfer Agency Agreement relating to Loomis Sayles Fixed Income Fund to
be filed by amendment.

(i) Opinion and Consent of Counsel to be filed by amendment.

(j) Consent of PricewaterhouseCoopers LLP to be filed by amendment.

(k) Not applicable.

(l) Not applicable.

(m) Not applicable.

(n) Not applicable.

(o)(1) Power of Attorney for Daniel J. Fuss. (2)

(o)(2) Powers of Attorney for Charles J. Finlayson and Timothy J. Hunt. (3)

(p)(1) Code of Ethics of Loomis, Sayles & Company, L.P. is filed herein.

(p)(2) Code of Ethics of the Registrant is filed herein.

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

(1) Incorporated by reference to the Exhibit to Post-Effective Amendment
No. 2 to the Registrant's Registration Statement under the Securities Act
of 1933 filed with the SEC on April 21, 1998.

(2) Incorporated by reference to the Exhibit to Post-Effective Amendment
No. 1 to the Registrant's Registration Statement under the Securities Act
of 1933 filed with the SEC on September 5, 1997.

-2-
<PAGE>

(3) Incorporated by reference to the Exhibit to Post-Effective Amendment
No. 6 to the Registrant's Registration Statement under the Securities Act
of 1933 filed with the SEC on November 19, 1999.

(4) Incorporated by reference to the Exhibit to Post-Effective Amendment
No. 8 to the Registrant's Registration Statement under the Securities Act
of 1933 filed with the SEC on January 26, 2000.

ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT

Not Applicable.

ITEM 25. INDEMNIFICATION

Article VIII of the Registrant's Agreement and Declaration of Trust (Exhibit (a)
hereto) and Article 4 of the Registrant's By-Laws (Exhibit (b) hereto) provide
for indemnification of its trustees and officers. The effect of these provisions
is to provide indemnification for each of the Registrant's trustees and officers
against liabilities and counsel fees reasonably incurred in connection with the
defense of any legal proceeding in which such trustee or officer may be involved
by reason of being or having been a trustee or officer, except with respect to
any matter as to which such trustee or officer shall have been adjudicated not
to have acted in good faith and in the reasonable belief that such trustee's or
officer's action was in the best interest of the Registrant, and except that no
trustee or officer shall be indemnified against any liability to the Registrant
or its shareholders to which such trustee or officer otherwise would be subject
by reason of willful misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of such trustee's or officer's
office.

ITEM 26. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER

Loomis, Sayles & Company, L.P., ("Loomis Sayles"), the investment advisor of the
Registrant, provides investment advice to the nineteen series of the Loomis
Sayles Funds, six series of New England Funds Trust I, one series of New England
Funds Trust II, and one series of New England Zenith Funds, all of which are
registered investment companies, and to other registered investment companies,
organizations, and individuals.

The sole general partner of Loomis Sayles is Loomis, Sayles & Company, Inc., One
Financial Center, Boston, Massachusetts 02111.

ITEM 27. PRINCIPAL UNDERWRITERS

Not applicable.

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ITEM 28. LOCATION OF ACCOUNTS AND RECORDS

The following companies maintain possession of the documents required by the
specified rules:

(a) Registrant
Rule 31a-1(b)(4), (9), (10), (11)
Rule 31a-2(a)

(b) State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
Rule 31a - 1(a)
Rule 31a - 1(b)(1), (2), (3),
(5), (6), (7), (8) Rule
31a-2(a)

ITEM 29. MANAGEMENT SERVICES

Not applicable.

ITEM 30. UNDERTAKINGS

Not applicable.

* * * * * * * * * * * * * * * * * * * *

NOTICE

A copy of the Agreement and Declaration of Trust of the Registrant is on
file with the Secretary of The Commonwealth of Massachusetts and the Clerk of
the City of Boston, and notice is hereby given that this Registration Statement
has been executed on behalf of the Registrant by an officer of the Registrant as
an officer and not individually and by its Trustees as trustees and not
individually and that the obligations of or arising out of this Registration
Statement are not binding upon any of the Trustees, officers, or shareholders
individually but are binding only upon the assets and property of the
Registrant.

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<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it has duly caused
this amendment to its Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Boston, The Commonwealth
of Massachusetts, on the 29/th/ day of November, 2000.

LOOMIS SAYLES INVESTMENT TRUST

By: /s/ Daniel J. Fuss
------------------------------------
Daniel J. Fuss, President

Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, this amendment to the Registration Statement of
the Registrant has been signed below by the following persons in the capacities
and on the dates indicated.

SIGNATURE TITLE DATE

/s/ Daniel J. Fuss President November 29, 2000
-----------------------------
Daniel J. Fuss*

/s/ Charles J. Finlayson Trustee November 29, 2000
-----------------------------
Charles J. Finlayson*

/s/ Timothy J. Hunt Trustee November 29, 2000
-----------------------------
Timothy J. Hunt*

*By: /s/ Mark W. Holland
---------------------------------
Mark W. Holland,
Attorney-in-Fact
November 29, 2000

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INDEX TO EXHIBITS

(P)(1) CODE OF ETHICS OF LOOMIS, SAYLES & COMPANY, L.P.

(P)(2) CODE OF ETHICS OF THE REGISTRANT