<PAGE>
<TABLE>
<S> <C>
PROSPECTUS
[LOGO] FEBRUARY 1, 2000,
AS REVISED
NOVEMBER 16, 2000
</TABLE>
LOOMIS SAYLES CORE FIXED INCOME FUND
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>
<CAPTION>
<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
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 after the Summary of Principal Risks. 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.
LOOMIS SAYLES INVESTMENT TRUST 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.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
RETURN
<S> <C>
1997* 9.2%
1998 8.3%
1999 -2.2%
</TABLE>
<TABLE>
<S> <C>
* 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 3.9%
(THIRD QUARTER, 1998), AND THE FUND'S WORST QUARTER WAS DOWN
1.3% (SECOND QUARTER, 1999).
</TABLE>
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.
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 1999
------------------------------------------------------------------------------------
Since
Inception
1 Year (4/24/96)*
<S> <C> <C>
------------------------------------------------------------------------------------
LOOMIS SAYLES CORE FIXED INCOME FUND -2.2% 5.5%
MERRILL LYNCH DOMESTIC MASTER INDEX -1.0% 6.4%(1)
</TABLE>
<TABLE>
<S> <C>
* 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, 1999 BENEFITED
FROM LOOMIS SAYLES' AGREEMENT TO LIMIT THE FUND'S EXPENSES.
</TABLE>
(1)SINCE INCEPTION DATA FOR THE INDEX COVERS THE PERIOD FROM THE MONTH-END
FOLLOWING THE FUND'S INCEPTION DATE THROUGH DECEMBER 31, 1999.
LOOMIS SAYLES INVESTMENT TRUST 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
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.
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.
LOOMIS SAYLES INVESTMENT TRUST 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>
Total
Annual
Distribution Fund Fee
Management (12b-1) Other Operating Waiver/ Net
Fund Fees Fees Expenses Expenses Reimbursement** Expenses**
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------
Loomis Sayles Core
Fixed
Income Fund* .35% none .65% 1.00% .50% .50%
----------------------------------------------------------------------------------------------
* 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, 2001.
----------------------------------------------------------------------------------------------
</TABLE>
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>
Fund 1 Year* 3 Years* 5 Years* 10 Years*
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------
Loomis Sayles Core Fixed Income
Fund $51 $269 $504 $1,179
--------------------------------------------------------------------------------
* EXPENSES SHOWN FOR THE FUND INCLUDE THE FEE WAIVER/REIMBURSEMENT FOR THE
FIRST YEAR OF EACH PERIOD.
--------------------------------------------------------------------------------
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 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.
<PAGE>
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.
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
LOOMIS SAYLES INVESTMENT TRUST 9
<PAGE>
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. 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
<PAGE>
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 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.
LOOMIS SAYLES INVESTMENT TRUST 11
<PAGE>
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.
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.
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
<PAGE>
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 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
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
Loomis Sayles Investment Trust's trustees, that a particular issue of Rule 144A
securities is liquid.
LOOMIS SAYLES INVESTMENT TRUST 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 Funds" 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, 2001.
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 Loomis Sayles
Investment Trust, has served as portfolio manager of the Fund 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.
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
LOOMIS SAYLES INVESTMENT TRUST 15
<PAGE>
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, to ensure that your investment has cleared, you
will not be permitted to redeem that investment until it 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
(Name of 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-term 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 within seven days 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 made in cash, as described in the Statement of Additional
Information, the Fund reserves the right to redeem shares in kind.
<PAGE>
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:
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
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,
LOOMIS SAYLES INVESTMENT TRUST 17
<PAGE>
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 (generally at a
20% federal income tax rate for non-corporate shareholders).
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.
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 PricewaterhouseCoopers LLP. The report of
PricewaterhouseCoopers LLP 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, Dec. 31, April 24** to
1999 1998* 1997 Dec. 31, 1996
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.49 $ 10.66 $ 10.14 $10.00
------- ------- ------- ------
Income from investment operations--
Net investment income (loss) 0.61 0.50 0.39 0.40
Net realized and unrealized 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>
<TABLE>
<C> <S>
* 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 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.
</TABLE>
LOOMIS SAYLES INVESTMENT TRUST 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.
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
<PAGE>
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.
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
LOOMIS SAYLES INVESTMENT TRUST 21
<PAGE>
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
LOOMIS SAYLES INVESTMENT TRUST 23
