2023-11-072-1NatixisEquityandIncomeFundsStatutoryProspectus
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Prospectus
February
1, 2024 |
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Admin
Class |
Retail
Class |
Institutional
Class |
Class
N |
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Loomis
Sayles Fixed Income Fund |
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LSFIX |
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Loomis
Sayles Global Bond Fund |
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LSGLX |
LSGBX |
LSGNX |
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Loomis
Sayles Inflation Protected Securities Fund |
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LIPRX |
LSGSX |
LIPNX |
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Loomis
Sayles Institutional High Income Fund |
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LSHIX |
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Loomis
Sayles Small Cap Growth Fund |
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LCGRX |
LSSIX |
LSSNX |
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Loomis
Sayles Small Cap Value Fund |
LSVAX |
LSCRX |
LSSCX |
LSCNX |
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Loomis
Sayles Small/Mid Cap Growth Fund |
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LSMIX |
LSMNX |
The
Securities and Exchange Commission and the Commodity Futures Trading Commission
have not approved or disapproved any Fund’s
shares or determined whether this Prospectus is truthful or complete. Any
representation to the contrary is a crime.
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.
FUND
FEES & EXPENSES
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such
as brokerage commissions and other fees to financial intermediaries, which are
not reflected in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
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(expenses
that you pay each year as a percentage of the value of your
investment) |
Institutional
Class |
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Management
fees |
0.50% |
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Distribution
and/or service (12b-1) fees |
0.00% |
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Other
expenses |
0.11% |
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Total
annual fund operating expenses |
0.61% |
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Fee
waiver and/or expense reimbursement1
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0.00% |
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Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.61% |
| 1 |
Loomis,
Sayles & Company, L.P. (“Loomis Sayles” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating
expenses to 0.65% of the Fund’s average daily net assets, exclusive of
brokerage expenses, interest expense, taxes, acquired fund fees and
expenses, organizational and extraordinary
expenses, such as litigation and indemnification expenses. This
undertaking is in effect through January 31, 2025
and may be terminated before then only with the consent
of the Fund’s Board of Trustees. The Adviser will be permitted to
recover
management fees waived and/or expenses reimbursed to the extent that
expenses in later periods fall
below
both (1) the class’ applicable expense limitation at the time such amounts
were waived/reimbursed and (2) the class’ current applicable expense
limitation. The Fund will not
be obligated to repay any such waived/reimbursed fees and expenses more
than one year after the end of the fiscal year in which the fees or
expenses were waived/reimbursed. |
Example
The
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the Fund for the time periods indicated and
then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year and that
the Fund’s operating expenses remain the same. The
example does not take into account brokerage commissions and other fees to
financial intermediaries that you may pay on your purchases
and sales of shares of the Fund. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
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Institutional
Class |
$ |
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$ |
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$ |
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$ |
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Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes for
you if your Fund shares are held in a taxable account. These
costs, which are not reflected in annual fund operating expenses or in the
example, affect the Fund’s performance. During its most recently
ended fiscal year, the Fund’s portfolio turnover rate was
35%
of the average value of its portfolio.
INVESTMENTS,
RISKS AND PERFORMANCE
Principal
Investment Strategies
Under
normal circumstances, the Fund will invest at least 80% of its net assets (plus
any borrowings made for investment purposes) in fixed-income
securities. The Fund may invest up to 35% of its assets in below
investment-grade fixed-income securities (commonly known as
“junk bonds”) and up to 20% of its assets in equity securities, such as common
stocks and preferred stocks. Below investment-grade fixed-income
securities are rated below investment-grade quality (i.e., none of the three
major ratings agencies (Moody’s Investors Service, Inc., Fitch
Investor Services, Inc. or S&P Global Ratings) have rated the securities in
one of their respective top four ratings categories). The Fund’s
fixed-income securities investments may include unrated securities (securities
that are not rated by a rating agency) if Loomis Sayles determines
that the securities are of comparable quality to rated securities that the Fund
may purchase. The Fund may invest in fixed-
income
securities of any maturity.
In
deciding which securities to buy and sell, Loomis Sayles may consider a number
of factors related to the bond issue and the current bond market,
including, for example, the stability and volatility of a country’s bond
markets, the financial strength of the issuer, current interest rates,
current valuations, Loomis Sayles’ expectations regarding general trends in
interest rates and currency considerations. Loomis Sayles will
also consider how purchasing or selling a bond would impact the overall
portfolio’s risk profile (for example, its sensitivity to currency risk,
interest rate risk and sector-specific risk) and potential return (income and
capital gains).
Three
themes typically drive the Fund’s investment approach. First, Loomis Sayles
generally seeks fixed-income securities that are attractively
valued relative to the Loomis Sayles’ credit research team’s assessment of
credit risk. The broad coverage combined with the objective
of identifying attractive investment opportunities makes this an important
component of the investment approach. Second, the Fund
may invest significantly in securities the prices of which Loomis Sayles
believes are more sensitive to events related to the underlying issuer
than to changes in general interest rates or overall market default rates. These
securities may not have a direct correlation with changes in
interest rates, thus helping to manage interest rate risk and to offer
diversified sources for return. Third, Loomis Sayles analyzes different
sectors
of the economy and differences in the yields (“spreads”) of various fixed-income
securities (U.S. government securities, investment-grade
corporate securities, securitized assets, high-yield corporate securities,
emerging market securities, non-U.S. sovereigns and credits, convertibles,
bank loans and municipals) in an effort to find securities that it believes may
produce attractive returns for the Fund in comparison
to their risk.
In
deciding which equity securities to buy and sell, Loomis Sayles intends to
emphasize dividend-paying stocks issued by companies with strong
fundamentals and relatively limited anticipated volatility to supplement its
fixed-income holdings. These securities will be selected with
the same bottom-up investment process that is the foundation of the Fund’s
overall strategy.
The
Fund may invest up
to 20% of its assets in foreign
securities, including emerging market securities. The Fund may invest without
limit in
obligations of supranational entities (e.g., the World Bank). Although certain
securities purchased by the Fund may be issued by domestic companies
incorporated outside of the United States, the Adviser does not consider these
securities to be foreign if the issuer is included in the
U.S. fixed-income indices published by Bloomberg.
The
fixed-income securities in which the Fund may invest include, among other
instruments, corporate bonds and other debt securities (including
junior and senior bonds), U.S. government securities, commercial paper,
collateralized loan obligations, zero-coupon securities, mortgage-backed
securities, stripped mortgage-backed securities, collateralized mortgage
obligations and other asset-backed securities, including
mortgage dollar rolls, when-issued securities, real estate investment trusts
(“REITs”), securities issued pursuant to Rule 144A under
the Securities Act of 1933 (“Rule 144A securities”), other
privately placed investments such as private credit investments, repurchase
agreements
and convertible securities. The Fund may also engage in options and futures
transactions, foreign currency transactions (such as forward
currency contracts) and swap transactions (including credit default swaps, in
which one party agrees to make periodic payments to a counterparty
in exchange for the right to receive a payment in the event of a default of the
underlying reference security).
Principal
Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose
money by investing in the Fund.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government
agency, and are subject to investment risks, including possible loss of the
principal invested.
The
significance
of any specific risk to an investment in the Fund will vary over time, depending
on the composition of the Fund’s portfolio, market
conditions, and other factors. You should read all of the risk information
presented below carefully, because any one or more of these risks
may result in losses to the Fund.
Credit/Counterparty
Risk
is the risk that the issuer or guarantor of a fixed-income security in which the
Fund invests, or the counterparty to
a derivative or other transaction, will be unable or unwilling to make timely
payments of interest or principal or to otherwise honor its obligations.
As a result, the Fund may sustain losses or be unable or delayed in its ability
to realize gains.
Below
Investment-Grade Fixed-Income Securities Risk
is the risk that the Fund’s investments in below investment-grade fixed-income
securities
may be subject to greater risks than other fixed-income securities, including
being subject to greater levels of interest rate risk, credit
risk (including a greater risk of default) and liquidity risk. The ability of
the issuer to make principal and interest payments is predominantly
speculative for below investment-grade fixed-income
securities.
Currency
Risk
is the risk that the value of the Fund’s investments will fall as a result of
changes in exchange rates. Loomis
Sayles may elect not
to hedge currency risk or may hedge imperfectly, which may cause the Fund to
incur losses that would not have been incurred had the risk
been hedged.
Interest
Rate Risk
is the risk that the value of the Fund’s investments will fall if interest rates
rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities with relatively longer durations than for funds that invest in
fixed-income securities with shorter durations. The values
of zero-coupon securities and securities with longer maturities are generally
more sensitive to fluctuations in interest rates than other fixed-income
securities. In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities
and reduce the Fund’s ability to sell them, negatively impacting the performance
of the Fund. Potential future changes in government
and/or
central bank monetary
policy and
action may
also
affect
the level of interest rates.
Recently,
there have been inflationary price movements, which have caused the fixed income
securities markets to experience heightened levels
of interest volatility and liquidity risk. Monetary policy measures have in the
past, and may in the future, exacerbate risks associated with
rising interest rates.
Market/Issuer
Risk
is the risk that the market value of the Fund’s investments will move up and
down, sometimes rapidly and unpredictably,
based upon overall market and economic conditions, as well as a number of
reasons that directly relate to the issuers of the Fund’s
investments, such as management performance, financial condition and demand for
the issuers’ goods and services.
Cybersecurity
and Technology Risk
is the risk associated with the increasing dependence of the Fund, its service
providers, and other market
participants on complex information technology and communications systems. Such
systems are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result
in financial losses to the Fund and its shareholders.
Derivatives
Risk
is the risk that the value of the Fund’s derivative investments such as forward
currency contracts, options, futures transactions
and swap transactions will fall, for example, because of changes in the value of
the underlying reference instruments, pricing difficulties
or lack of correlation with the underlying investments. The use of derivatives
for other than hedging purposes may be considered a
speculative activity, and involves greater risks than are involved in hedging.
There is also the risk that the Fund may be unable to terminate or
sell a derivative position at an advantageous time or price. The Fund’s
derivative counterparties may experience financial difficulties or otherwise
be unwilling or unable to honor their obligations, possibly resulting in losses
to the Fund. This risk is greater for forward currency contracts,
uncleared swaps and other over-the-counter (“OTC”) traded derivatives. Investing
in derivatives gives rise to other risks, such as leverage
risk, liquidity risk, credit/counterparty risk, interest rate risk and
market/issuer risk. The use of derivatives may cause the Fund to incur
losses greater than those which would have occurred had derivatives not been
used.
Emerging
Markets Risk
is the risk that the Fund’s investments in emerging markets may face greater
foreign securities risk. Emerging markets
investments are subject to greater risks arising from political or economic
instability, war,
nationalization
or confiscatory taxation, currency
exchange or
repatriation restrictions, sanctions by other countries (such as the United
States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments,
and
an issuer’s unwillingness or inability to make dividend,
principal
or interest payments on its securities.
Emerging markets companies may be smaller and have shorter operating histories
than companies
in developed markets.
Equity
Securities Risk
is the risk that the value of the
Fund’s investments in equity securities could be subject to unpredictable
declines in the
value of individual securities and periods of below-average performance in
individual securities or in the equity market as a whole
In
the event
an issuer is liquidated or declares bankruptcy, the claims of owners of the
issuer’s bonds generally take precedence over the claims of those
who own preferred stock or common stock.
Foreign
Securities Risk
is the risk that the value of the Fund’s foreign investments will fall as a
result of foreign political, social, economic, environmental,
credit, informational or currency changes or other issues relating to foreign
investing generally. Foreign securities may be subject
to higher volatility than U.S. securities, varying degrees of regulation and
limited liquidity. The Fund’s investments in foreign securities
may be subject to foreign withholding or other taxes, which would decrease the
yield on those securities.
Inflation/Deflation
Risk
is the risk that the value of assets or income from investments will be worth
less in the future as inflation decreases the
present value of future payments. As
inflation increases, the real value of the Fund’s portfolio could decline.
Inflation rates may change frequently
and drastically. The Fund’s investments may not keep pace with inflation, which
may result in losses to the Fund’s investors. Recently,
inflation rates in the United States and elsewhere have been increasing. There
can be no assurance that this trend will not continue or
that efforts to slow or reverse inflation will not harm the economy and asset
values. Deflation
risk is the risk that prices throughout the economy
decline over time - the opposite of inflation. Deflation may have an adverse
effect on the creditworthiness of issuers and may make
issuer
default more likely, which may result in a decline in the value of the Fund’s
portfolio.
Large
Investor Risk is
the risk associated with ownership of shares of the Fund that may be
concentrated in one or a few large investors. Such investors may redeem shares
in large quantities or on a frequent basis. Redemptions by a large investor can
affect the performance of the Fund, may increase realized capital gains,
including short-term capital gains taxable as ordinary income, may accelerate
the realization of taxable income to shareholders and may increase transaction
costs. These transactions potentially limit the use of any capital loss
carryforwards and certain other losses to offset future realized capital gains
(if any). Such transactions may also increase the Fund’s expenses.
Leverage
Risk
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small
index, market or asset price movements into larger changes in value. Use of
derivative instruments (such as futures and forward currency
contracts) may involve leverage. When a derivative is used as a hedge against an
offsetting position that the Fund also holds, any gains
generated by the derivative should be substantially offset by losses on the
hedged instrument, and vice versa. To the extent that the Fund
uses a derivative for purposes other than as a hedge, or if the Fund hedges
imperfectly, the Fund is directly exposed to the risks of that derivative
and any loss generated by the derivative will not be offset by a gain. The use
of leverage increases the impact of gains and losses on the
Fund’s returns, and may lead to significant losses if investments are not
successful.
Liquidity
Risk
is the risk that the Fund may be unable to find a buyer for its investments when
it seeks to sell them or to receive the price it expects.
Events that may lead to increased redemptions, such as market disruptions or
increases in interest rates, may also negatively impact the
liquidity of the Fund’s investments when it needs to dispose of them.
Markets
may become illiquid quickly. If
the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect
the Fund. During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a
private placement, such as Rule 144A securities
and privately negotiated credit and other investments,
are generally subject to significant liquidity
risk because they are subject to strict restrictions on resale and there may be
no liquid secondary market or ready purchaser for such securities.
In
other circumstances, liquid investments may become illiquid. Liquidity
issues may also make it difficult to value the Fund’s investments.
The Fund may invest in liquid investments that become illiquid due to financial
distress, or geopolitical events such as sanctions,
trading halts or wars.
Management
Risk
is the risk that Loomis Sayles’ investment techniques will be unsuccessful and
cause the Fund to incur losses.
Mortgage-Related
and Asset-Backed Securities Risk
is the risk associated with the mortgages and assets underlying the securities,
as well as
the risk that the securities may be prepaid and result in the reinvestment of
the prepaid amounts in securities with lower yields than the prepaid
obligations. Conversely, there is a risk that a rise in interest rates will
extend the life of a mortgage-related or asset-backed security beyond
the expected prepayment time, typically reducing the security’s value, which is
called extension risk. The Fund may also incur a loss when
there is a prepayment of securities that were purchased at a premium. It also
includes risks associated with investing in the mortgages underlying
the mortgage-backed securities. The Fund’s investments in other asset-backed
securities are subject to risks similar to those associated
with mortgage-related securities, as well as additional risks associated with
the nature of the assets and the servicing of those assets. The
Fund’s investments in mortgage-related and other asset-backed securities are
also subject to the risks associated with investments in fixed-income
securities generally (e.g., credit/counterparty, liquidity,
inflation
and valuation risks).
REITs
Risk
is the risk that the value of the Fund’s investments in REITs will fall as a
result of changes in underlying real estate values, rising interest
rates, limited diversification of holdings, higher costs and prepayment risk
associated with related mortgages, as well as other risks particular
to investments in real estate. Many REITs are highly leveraged, increasing their
risk. The
Fund will indirectly bear its proportionate
share of expenses, including management fees, paid by each REIT in which it
invests in addition to the expenses of the Fund.
Risk/Return
Bar Chart and Table
The
following bar chart and table give an indication of the risks of investing in
the Fund by showing changes in the Fund’s performance from
year to year and by showing how the Fund’s average annual returns for the
one-year, five-year and ten-year periods compare to those of a
broad-based
securities market index that reflects the performance of the overall market
applicable to the Fund.
The Fund’s past performance
(before and after taxes) does not necessarily indicate how the Fund will perform
in the future. Updated performance information
is available online at www.loomissayles.com and/or by calling the Fund toll-free
at 800-633-3330.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been
waived or reimbursed during the period, total returns would have been
lower.
Total
Returns for Institutional Class Shares
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Highest
Quarterly Return:
Second
Quarter 2020, 9.15%
Lowest
Quarterly Return:
First
Quarter 2020, -12.99% |
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Average
Annual Total Returns |
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(for
the periods ended December 31, 2023) |
Past
1 Year |
Past
5 Years |
Past
10 Years |
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Institutional
Class - Return Before Taxes |
8.20% |
3.29% |
2.93% |
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Return
After Taxes on Distributions |
6.34% |
1.69% |
1.04% |
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Return
After Taxes on Distributions and Sale of Fund Shares |
4.86% |
2.01% |
1.55% |
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Bloomberg
U.S. Aggregate Bond Index1
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5.53% |
1.10% |
1.81% |
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Bloomberg
U.S. Government/Credit Bond Index |
5.72% |
1.41% |
1.97% |
| 1 |
Effective
February 1, 2024, the Fund’s primary broad-based performance index changed
to the Bloomberg U.S. Aggregate Bond Index. The Bloomberg U.S. Aggregate
Bond Index is
a broad-based securities market index that represents the overall market
applicable to the Fund. The Bloomberg U.S. Aggregate Bond Index replaced
the Bloomberg U.S. Government/Credit
Bond Index as the Fund’s primary benchmark because the Fund believes it
provides a more appropriate comparison to the Fund’s investable
universe. |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and
local taxes. Actual after-tax returns depend on an investor’s tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their shares through tax-advantaged arrangements,
such as 401(k) plans, qualified plans, education savings
accounts, such as 529 plans, or individual retirement accounts. The after-tax
returns are shown for the Institutional Class of the Fund.
Index performance reflects no deduction for fees, expenses or
taxes.
MANAGEMENT
Investment
Adviser
Loomis
Sayles
Portfolio
Managers
Matthew
J. Eagan, CFA®,
Portfolio
Manager and Co-Head of the Full Discretion Team, and Director at
Loomis Sayles, has served as a portfolio
manager of the Fund since 2012 and was an associate portfolio manager of the
Fund from 2007 to 2012.
Brian
P. Kennedy, Co-Portfolio
Manager on the Full Discretion Team at
Loomis Sayles, has served as a portfolio manager of the Fund since 2016.
PURCHASE
AND SALE OF FUND SHARES
The
following information shows the investment minimums
for various types of accounts:
Institutional
Class Shares
Institutional
Class shares of the Fund are generally subject to a minimum initial investment
of $3,000,000 and a minimum subsequent investment
of $50,000, except there is no minimum initial or subsequent investment
for:
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Fund
Trustees,
former Fund trustees, employees of affiliates of the Loomis Sayles Funds
and other individuals who are affiliated with any Loomis
Sayles Fund (this also applies to any spouse, parents, children, siblings,
grandparents, grandchildren and in-laws of those mentioned)
and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis Advisors, LLC
(“Natixis Advisors”),
clients of Natixis Advisors,
and its affiliates may purchase Institutional Class shares
of the Fund below the stated minimums. The minimum may also be waived for the
clients of financial consultants and financial institutions
that have a business relationship with Loomis Sayles, if such client invests at
least $1,000,000 in the Fund.
The
Fund’s shares are available for purchase and are redeemable on any business day
directly from the Fund by writing to the Fund at
Loomis
Sayles Funds, P.O. Box 219594, Kansas City, MO 64121-9594, by exchange, by wire,
by internet at www.loomissayles.com, by telephone
at 800-633-3330, through the Automated Clearing House system, or, in the case of
redemptions, by the Systematic Withdrawal Plan.
See the section “How Fund Shares are Priced” in the Prospectus for
details.
TAX
INFORMATION
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors
that qualify for tax-advantaged treatment under U.S. federal income tax law
generally. Investments in such tax-advantaged plans will
generally be taxed only upon withdrawal of monies from the tax-advantaged
arrangement.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies
may pay the intermediary for the sale of the Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to recommend the
Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more
information.
Loomis
Sayles Global Bond Fund
INVESTMENT
OBJECTIVE
The
Fund’s investment objective is high total investment return through a
combination of high current income and capital appreciation.
FUND
FEES & EXPENSES
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such
as brokerage commissions and other fees to financial intermediaries, which are
not reflected in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
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(expenses
that you pay each year as a percentage of the value of your
investment) |
Institutional
Class |
Retail
Class |
Class
N |
|
Management
fees |
0.55% |
0.55% |
0.55% |
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Distribution
and/or service (12b-1) fees |
0.00% |
0.25% |
0.00% |
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Other
expenses |
0.23% |
0.23% |
0.13% |
|
Total
annual fund operating expenses |
0.78% |
1.03% |
0.68% |
|
Fee
waiver and/or expense reimbursement1
|
0.09% |
0.09% |
0.04% |
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.69% |
0.94% |
0.64% |
| 1 |
Loomis,
Sayles & Company, L.P. (“Loomis Sayles” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating
expenses to 0.69%, 0.94% and 0.64% of the Fund’s average daily net assets
for Institutional Class shares, Retail Class shares and Class N shares,
respectively, exclusive of brokerage
expenses, interest expense, taxes, acquired fund fees and expenses,
organizational and extraordinary expenses, such as litigation and
indemnification expenses. This undertaking
is in effect through January 31, 2025
and may be terminated before then only with the consent of the Fund’s
Board of Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall below
both
(1) the class’ applicable expense limitation
at the time such amounts were waived/reimbursed and (2) the class’ current
applicable expense limitation.
The Fund will not be obligated to repay any such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were
waived/reimbursed. |
Example
The
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the Fund for the time periods indicated and
then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year and that
the Fund’s operating expenses remain the same,
except that the examples are based on the Total Annual Fund Operating Expenses
After Fee Waiver and/or Expense Reimbursement
assuming that such waiver and/or reimbursement will only be in place through the
date noted above and on the Total Annual
Fund Operating Expenses for the remaining periods. The example does not take
into account brokerage commissions and other fees
to financial intermediaries that you may pay on your purchases and sales of
shares of the Fund. Although your actual costs may be higher
or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
| |
|
|
1
year |
3
years |
5
years |
10
years |
|
Institutional
Class |
$ |
|
$ |
|
$ |
|
$ |
|
|
Retail
Class |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes for
you if your Fund shares are held in a taxable account. These
costs, which are not reflected in annual fund operating expenses or in the
example, affect the Fund’s performance. During its most recently
ended fiscal year, the Fund’s portfolio turnover rate was
49%
of the average value of its portfolio.
INVESTMENTS,
RISKS AND PERFORMANCE
Principal
Investment Strategies
The
Fund will normally invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in fixed-income securities (for
example, bonds and other investments that Loomis Sayles believes have similar
economic characteristics, such as notes, debentures and loans).
The Fund invests primarily in investment-grade fixed-income securities
worldwide, although it may invest up to 20% of its assets in below
investment-grade fixed-income securities (commonly known as “junk bonds”). Below
investment-grade fixed-income securities are rated
below investment-grade quality (i.e., none of the three major rating agencies
(Moody’s Investors Service, Inc., Fitch Investor Services, Inc.
or S&P Global Ratings) have rated the securities in one of their respective
top four rating categories). The Fund’s fixed-income securities
investments may include unrated securities (securities that are not rated by a
rating agency) if Loomis Sayles determines that the securities
are of comparable quality to rated securities that the Fund may purchase.
Securities held by the Fund may be denominated in any currency
and may be issued by issuers located in countries with emerging securities
markets. The Fund may invest in fixed-income securities of
any maturity. The Fund may also invest in foreign currencies and may engage in
other foreign currency transactions (such as forward currency
contracts) for investment or hedging purposes.
In
deciding which securities to buy and sell, Loomis Sayles may consider a number
of factors related to the bond issue and the current bond market,
including
for
example, the stability and volatility of a country’s bond markets, the financial
strength of the issuer, current interest rates,
current valuations, Loomis Sayles’ expectations regarding general trends in
interest rates and currency considerations. Loomis Sayles will
also consider how purchasing or selling a bond would impact the overall
portfolio’s risk profile (for example, its sensitivity to currency risk,
interest rate risk and sector-specific risk) and potential return (income and
capital gains).
Three
themes typically drive the Fund’s investment approach. First, Loomis Sayles
generally seeks fixed-income securities that are attractively
valued relative to the Loomis Sayles’ credit research team’s assessment of
credit risk. The broad coverage combined with the objective
to identify attractive investment opportunities makes this an important
component of the investment approach. Second, Loomis Sayles
analyzes political, economic and other fundamental factors and combines this
analysis with a comparison of the yield spreads of various
fixed-income securities in an effort to find securities that it believes may
produce attractive returns for the Fund in comparison to their
risk. Third, if a security that is believed to be attractive is denominated in a
foreign currency, Loomis Sayles analyzes whether to accept or
to hedge the currency risk.
In
assessing both risks and opportunities related to the Fund’s investments, Loomis
Sayles seeks to take into account the factors that may influence
an investment’s performance over time. This includes material environmental,
social, and governance (“ESG”) risks and opportunities
(those which could cause a material impact on the value of an
investment).
In
integrating risks and opportunities into its investment process, Loomis Sayles
takes into account ESG factors that it deems may be material
to an investment, such as carbon intensity, renewable energy usage from low
carbon sources, workplace diversity, and board composition,
at all stages of the investment management process, including strategy
development, investment analysis and due diligence, and
portfolio construction (including at the point where the investment team
considers investment opportunities), and as part of its ongoing monitoring
and risk analysis.
To
the extent that Loomis Sayles concludes that there is an ESG risk associated
with an investment, Loomis Sayles assesses the probability and
potential impact of that ESG risk against the potential pecuniary advantage to
the Fund of making the investment. If Loomis Sayles believes
the potential pecuniary advantage outweighs the actual or potential impact of
the ESG risk, then Loomis Sayles may still make the investment.
The
fixed-income securities in which the Fund may invest include, among other
instruments, corporate bonds and other debt securities, U.S.
government securities, commercial paper, zero-coupon securities, securitized and
mortgage-related securities (including senior and junior
loans, mortgage dollar rolls and collateralized mortgage obligations) and other
asset-backed securities, when-issued securities, securities
issued pursuant to Rule 144A under the Securities Act of 1933 (“Rule 144A
securities”), other
privately placed investments such as private
credit investments, bank loans, structured
notes, collateralized loan obligations, repurchase agreements and convertible
securities. The
Fund may also engage in options and futures transactions and swap transactions
(including credit default swaps, in which one party agrees
to make periodic payments to a counterparty in exchange for the right to receive
a payment in the event of a default of the underlying reference
security).
Principal
Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose
money by investing in the Fund.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government
agency, and are subject to investment risks, including possible loss of the
principal invested.
The
significance
of any specific risk to an investment in the Fund will vary over time, depending
on the composition of the Fund’s portfolio, market
conditions, and other factors. You should read all of the risk information
presented below carefully, because any one or more of these risks
may result in losses to the Fund.
Currency
Risk
is the risk that the value of the Fund’s investments will fall as a result of
changes in exchange rates. Loomis
Sayles may elect not
to hedge currency risk or may hedge imperfectly, which may cause the Fund to
incur losses that would not have been incurred had the risk
been hedged.
Interest
Rate Risk
is the risk that the value of the Fund’s investments will fall if interest rates
rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities with relatively longer durations than for funds that invest in
fixed-income securities with shorter durations. The values
of zero-coupon securities and securities with longer maturities are generally
more sensitive to fluctuations in interest rates than other fixed-income
securities. In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities
and reduce the Fund’s ability to sell them, negatively impacting the performance
of the Fund. Potential future changes in government
and/or
central bank monetary
policy and
action may
also
affect
the level of interest rates.
Recently,
there have been inflationary price movements, which have caused the fixed income
securities markets to experience heightened levels
of interest volatility and liquidity risk. Monetary policy measures have in the
past, and may in the future, exacerbate risks associated with
rising interest rates.
Credit/Counterparty
Risk
is the risk that the issuer or guarantor of a fixed-income security in which the
Fund invests, or the counterparty to
a derivative or other transaction, will be unable or unwilling to make timely
payments of interest or principal or to otherwise honor its obligations.
As a result, the Fund may sustain losses or be unable or delayed in its ability
to realize gains.
Emerging
Markets Risk
is the risk that the Fund’s investments in emerging markets may face greater
foreign securities risk. Emerging markets
investments are subject to greater risks arising from political or economic
instability, war,
nationalization
or confiscatory taxation, currency
exchange or
repatriation restrictions, sanctions by other countries (such as the United
States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments,
and
an issuer’s unwillingness or inability to make dividend,
principal
or interest payments on its securities.
Emerging markets companies may be smaller and have shorter operating histories
than companies
in developed markets.
Below
Investment-Grade Fixed-Income Securities Risk
is the risk that the Fund’s investments in below investment-grade fixed-income
securities
may be subject to greater risks than other fixed-income securities, including
being subject to greater levels of interest rate risk, credit
risk (including a greater risk of default) and liquidity risk. The ability of
the issuer to make principal and interest payments is predominantly
speculative for below investment-grade fixed-income securities.
Bank
Loans Risk
is the risk that the Fund’s investments in bank loans are subject to credit risk
and may not be adequately collateralized. Indebtedness
of borrowers whose creditworthiness is poor involves substantially greater risks
and may be highly speculative. The interest rates
on many bank loans reset frequently, and thus bank loans are subject to interest
rate risk. Most bank loans, like most investment-grade bonds,
are not traded on any national securities exchange. There may also be less
public information available about bank loans as compared to
other debt securities.
Collateralized
Loan Obligation (“CLO”) Risk
is the risk that the Fund’s investments in CLOs involve risks in addition to the
risks associated
with investments in debt obligations and other fixed-income securities such as
credit risk, interest rate risk, liquidity risk and market/issuer
risk. The degree of such risk will generally correspond to the type of
underlying assets and the specific tranche in which the Fund
is invested. A CLO’s performance is linked to the expertise of the CLO manager
and its ability to manage the CLO’s portfolio. Changes
in the regulation of CLOs may adversely affect the value of the CLO investments
held by the Fund. The tranche of the CLO held by
the Fund may be subordinate to other classes of the CLO’s debt. CLO debt is
payable solely from the proceeds of the CLO’s underlying assets
and, therefore, if the income from the underlying loans is insufficient to make
payments on one or more tranches of the CLO’s debt, no
other assets will be available for payment. CLO debt securities may be subject
to redemption and the timing of redemptions may adversely
affect the returns on CLO debt. The CLO manager may not find suitable assets in
which to invest and the CLO manager’s
opportunities
to invest may be limited.
Cybersecurity
and Technology Risk
is the risk associated with the increasing dependence of the Fund, its service
providers, and other market
participants on complex information technology and communications systems. Such
systems are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result
in financial losses to the Fund and its shareholders.
Derivatives
Risk
is the risk that the value of the Fund’s derivative investments such as forward
currency contracts, structured notes, options, futures
transactions and swap transactions will fall, for example, because of changes in
the value of the underlying reference instruments, pricing
difficulties or lack of correlation with the underlying investments. The use of
derivatives for other than hedging purposes may be considered
a speculative activity, and involves greater risks than are involved in hedging.
There is also the risk that the Fund may be unable to
terminate or sell a derivative position at an advantageous time or price. The
Fund’s derivative counterparties may experience financial difficulties
or otherwise be unwilling or unable to honor their obligations, possibly
resulting in losses to the Fund. This risk is greater for forward
currency contracts, uncleared swaps and other over-the-counter (“OTC”) traded
derivatives. Investing in derivatives gives rise to other
risks, such as leverage risk, liquidity risk, credit/counterparty risk, interest
rate risk and market/issuer risk. The use of derivatives may cause
the Fund to incur losses greater than those which would have occurred had
derivatives not been used.
ESG
Risk
is the risk related to ESG factors that may impact the performance of securities
in which the Fund invests. Such ESG factors include,
for example, climate change; resource depletion; renewal energy usage;
governance, diversity and labor practices; workplace health and
safety; supply chain standards; and product health and safety. The companies or
issuers in which the Fund invests may not have favorable
ESG characteristics.
Foreign
Securities Risk
is the risk that the value of the Fund’s foreign investments will fall as a
result of foreign political, social, economic, environmental,
credit, informational or currency changes or other issues relating to foreign
investing generally. Foreign securities may be subject
to higher volatility than U.S. securities, varying degrees of regulation and
limited liquidity. The Fund’s investments in foreign securities
may be subject to foreign withholding or other taxes, which would decrease the
yield on those securities.
Inflation/Deflation
Risk
is the risk that the value of assets or income from investments will be worth
less in the future as inflation decreases the
present value of future payments. As
inflation increases, the real value of the Fund’s portfolio could decline.
Inflation rates may change frequently
and drastically. The Fund’s investments may not keep pace with inflation, which
may result in losses to the Fund’s investors. Recently,
inflation rates in the United States and elsewhere have been increasing. There
can be no assurance that this trend will not continue or
that efforts to slow or reverse inflation will not harm the economy and asset
values. Deflation
risk is the risk that prices throughout the economy
decline over time - the opposite of inflation. Deflation may have an adverse
effect on the creditworthiness of issuers and may make issuer
default more likely, which may result in a decline in the value of the Fund’s
portfolio.
Leverage
Risk
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small
index, market or asset price movements into larger changes in value. Use of
derivative instruments (such as futures and forward currency
contracts) may involve leverage. When a derivative is used as a hedge against an
offsetting position that the Fund also holds, any gains
generated by the derivative should be substantially offset by losses on the
hedged instrument, and vice versa. To the extent that the Fund
uses a derivative for purposes other than as a hedge, or if the Fund hedges
imperfectly, the Fund is directly exposed to the risks of that derivative
and any loss generated by the derivative will not be offset by a gain. The use
of leverage increases the impact of gains and losses on the
Fund’s returns, and may lead to significant losses if investments are not
successful.
Liquidity
Risk
is the risk that the Fund may be unable to find a buyer for its investments when
it seeks to sell them or to receive the price it expects.
Events that may lead to increased redemptions, such as market disruptions or
increases in interest rates, may also negatively impact the
liquidity of the Fund’s investments when it needs to dispose of them.
Markets
may become illiquid quickly. If
the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect
the Fund. During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a
private placement, such as Rule 144A securities
and privately negotiated credit and other investments,
are generally subject to significant liquidity
risk because they are subject to strict restrictions on resale and there may be
no liquid secondary market or ready purchaser for such securities.
In
other circumstances, liquid investments may become illiquid. Liquidity
issues may also make it difficult to value the Fund’s investments.
The Fund may invest in liquid investments that become illiquid due to financial
distress, or geopolitical events such as sanctions,
trading halts or wars.
Management
Risk
is the risk that Loomis Sayles’ investment techniques will be unsuccessful and
cause the Fund to incur losses.
Market/Issuer
Risk
is the risk that the market value of the Fund’s investments will move up and
down, sometimes rapidly and unpredictably,
based upon overall market and economic conditions, as well as a number of
reasons that directly relate to the issuers of the
Fund’s
investments, such as management performance, financial condition and demand for
the issuers’ goods and services.
Mortgage-Related
and Asset-Backed Securities Risk
is the risk associated with the mortgages and assets underlying the securities,
as well as
the risk that the securities may be prepaid and result in the reinvestment of
the prepaid amounts in securities with lower yields than the prepaid
obligations. Conversely, there is a risk that a rise in interest rates will
extend the life of a mortgage-related or asset-backed security beyond
the expected prepayment time, typically reducing the security’s value, which is
called extension risk. The Fund may also incur a loss when
there is a prepayment of securities that were purchased at a premium. It also
includes risks associated with investing in the mortgages underlying
the mortgage-backed securities. The Fund’s investments in other asset-backed
securities are subject to risks similar to those associated
with mortgage-related securities, as well as additional risks associated with
the nature of the assets and the servicing of those assets. The
Fund’s investments in mortgage-related and other asset-backed securities are
also subject to the risks associated with investments in fixed-income
securities generally (e.g., credit/counterparty, liquidity,
inflation
and valuation risks).
Risk/Return
Bar Chart and Table
The
following bar chart and table give an indication of the risks of investing in
the Fund by showing changes in the Fund’s performance from
year to year and by showing how the Fund’s average annual returns for the
one-year, five-year
and ten-year
periods compare
to those of a
broad measure of market performance. The Fund’s past performance (before and
after taxes) does not necessarily indicate how the Fund will
perform in the future. Updated performance information is available online at
www.loomissayles.com and/or by calling the Fund toll-free
at 800-633-3330.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been
waived or reimbursed during the period, total returns would have been
lower.
Total
Returns for Institutional Class Shares
|
| |
|
|
Highest
Quarterly Return:
Fourth
Quarter 2023, 8.69%
Lowest
Quarterly Return:
Second
Quarter 2022, -9.58% |
|
|
|
| |
|
Average
Annual Total Returns |
|
|
|
|
(for
the periods ended December 31, 2023) |
Past
1 Year |
Past
5 Years |
Past
10 Years |
|
Institutional
Class - Return Before Taxes |
5.48% |
0.13% |
0.54% |
|
Return
After Taxes on Distributions |
5.48% |
-0.58% |
-0.01% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
3.24% |
-0.09% |
0.24% |
|
Retail
Class - Return Before Taxes |
5.15% |
-0.13% |
0.28% |
|
Class
N - Return Before Taxes |
5.46% |
0.16% |
0.60% |
|
Bloomberg
Global Aggregate Bond Index |
5.72% |
-0.32% |
0.38% |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and
local taxes. Actual after-tax returns depend on an investor’s tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their shares through tax-advantaged arrangements,
such as 401(k) plans, qualified plans, education savings
accounts, such as 529 plans, or individual retirement accounts. The after-tax
returns are shown for the Institutional Class of the Fund.
After-tax returns for the other classes of the Fund will vary. Index performance
reflects no deduction for fees, expenses or taxes.
MANAGEMENT
Investment
Adviser
Loomis
Sayles
Portfolio
Managers
David
W. Rolley, CFA®,
Portfolio
Manager and Co-Head of the Global Fixed Income Team at
Loomis Sayles, has served as a portfolio manager
of the Fund since 2000.
Lynda
L. Schweitzer, CFA®,
Portfolio
Manager and Co-Head of the Global Fixed Income Team at
Loomis Sayles, has served as a portfolio manager
of the Fund since 2007.
Scott
M. Service, CFA®,
Portfolio
Manager and Co-Head of the Global Fixed Income Team at
Loomis Sayles, has served as a portfolio manager
of the Fund since 2014.
PURCHASE
AND SALE OF FUND SHARES
Retail
Class Shares
The
following chart
shows the investment minimums
for various types of accounts:
|
| |
|
Type
of Account |
Minimum
Initial Purchase |
|
Any
account other than those listed below |
$2,500 |
|
For
shareholders participating in Loomis Sayles Funds’ Automatic Investment
Plan |
$1,000 |
|
For
Traditional IRA, Roth IRA, Rollover IRA and SEP-IRA |
$1,000 |
There
is no initial investment minimum for:
|
• |
Fee-based
programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult
your financial representative to determine if your fee based program is
subject to additional or different conditions or
fees. |
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Clients
of a Registered
Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
The
minimum investment requirements for Retail Class shares of the Fund may be
waived or lowered for investments effected through certain
financial intermediaries that have entered into special arrangements with
Natixis Distribution, LLC
(the “Distributor”). Consult your
financial intermediary for additional information regarding the minimum
investment requirement applicable to your investment.
Institutional
Class Shares
Institutional
Class shares of the Fund are generally subject to a minimum initial investment
of $100,000 except
there is no minimum initial investment
for:
|
• |
Fee-based
programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult
your financial representative to determine if your fee based program is
subject to additional or different conditions or
fees. |
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Certain
Individual Retirement Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement
plans invested in the Fund. |
|
• |
Clients
of a Registered
Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
|
• |
Fund
Trustees,
former Fund trustees, employees of affiliates of the Loomis Sayles Funds
and other individuals who are affiliated with any Loomis
Sayles Fund (this also applies to any spouse, parents, children, siblings,
grandparents, grandchildren and in-laws of those mentioned)
and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis Advisors,
LLC (“Natixis Advisors”),
clients of Natixis Advisors,
and its affiliates may purchase Institutional Class shares
of the Fund below the stated minimums.
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts
(such as wrap accounts) where an advisory fee is paid to the broker-dealer or
other financial intermediary.
There is no subsequent investment
minimum for these shares. There is no initial investment minimum
for:
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
|
• |
Funds
of funds
that are distributed by the Distributor. |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes
will have enough assets to exceed the investment minimum requirement within a
relatively short period of time following the establishment
date of such accounts in Class N. The
Distributor and the Fund, at any time, reserve the right to liquidate these
accounts or any
other account that does not meet the eligibility requirements of this
class.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your financial adviser, through your broker-dealer,
directly from the Fund by writing to the Fund at Loomis Sayles Funds, P.O. Box
219594, Kansas City, MO 64121-9594, by exchange,
by wire, by internet at www.loomissayles.com, by telephone at 800-633-3330,
through the Automated Clearing House system, or,
in the case of redemptions, by the Systematic Withdrawal Plan. See the section
“How Fund Shares are Priced” in the Prospectus for details.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and
accounts of registered investment advisers may be subject to the investment
minimums described above.
TAX
INFORMATION
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors
that qualify for tax-advantaged treatment under U.S. federal income tax law
generally. Investments in such tax-advantaged plans will
generally be taxed only upon withdrawal of monies from the tax-advantaged
arrangement.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies
may pay the intermediary for the sale of the Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to recommend the
Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more
information.
Loomis
Sayles Inflation Protected Securities Fund
INVESTMENT
OBJECTIVE
The
Fund’s investment objective is high total investment return through a
combination of current income and capital appreciation.
FUND
FEES & EXPENSES
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such
as brokerage commissions and other fees to financial intermediaries, which are
not reflected in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
|
| |
|
(expenses
that you pay each year as a percentage of the value of your
investment) |
Institutional
Class |
Retail
Class |
Class
N |
|
Management
fees |
0.25% |
0.25% |
0.25% |
|
Distribution
and/or service (12b-1) fees |
0.00% |
0.25% |
0.00% |
|
Other
expenses |
0.31% |
0.31% |
0.22% |
|
Total
annual fund operating expenses |
0.56% |
0.81% |
0.47% |
|
Fee
waiver and/or expense reimbursement1,2
|
0.16% |
0.16% |
0.12% |
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.40% |
0.65% |
0.35% |
| 1 |
Loomis,
Sayles & Company, L.P. (“Loomis Sayles” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating
expenses to 0.40%, 0.65% and 0.35% of the Fund’s average daily net assets
for Institutional Class shares, Retail Class shares and Class N shares,
respectively, exclusive of brokerage
expenses, interest expense, taxes, acquired fund fees and expenses,
organizational and extraordinary expenses, such as litigation and
indemnification expenses. This undertaking
is in effect through January 31, 2025
and may be terminated before then only with the consent of the Fund’s
Board of Trustees. The Adviser will be permitted to recover,
on a class by class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall
below
both (1) the class’ applicable expense limitation
at the time such amounts were waived/reimbursed and (2) the class’ current
applicable expense limitation. The Fund will not be obligated to repay any
such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were
waived/reimbursed. |
| 2 |
Natixis
Advisors, LLC
(“Natixis Advisors”) has given a binding contractual undertaking to the
Fund to reimburse any and all transfer agency expenses for Class N shares.
This undertaking
is in effect through January 31, 2025
and may be terminated before then only with the consent of the Fund’s
Board of Trustees. |
Example
The
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the Fund for the time periods indicated and
then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year and that
the Fund’s operating expenses remain the same, except
that the example is based on the Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement assuming that
such waiver and/or reimbursement will only be in place through the date noted
above and on the Total Annual Fund Operating Expenses
for the remaining periods. The example does not take into account brokerage
commissions and other fees to financial intermediaries
that you may pay on your purchases and sales of shares of the Fund. Although
your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
| |
|
|
1
year |
3
years |
5
years |
10
years |
|
Institutional
Class |
$ |
|
$ |
|
$ |
|
$ |
|
|
Retail
Class |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes for
you if your Fund shares are held in a taxable account. These
costs, which are not reflected in annual fund operating expenses or in the
example, affect the Fund’s performance. During its most recently
ended fiscal year, the Fund’s portfolio turnover rate was
36%
of the average value of its portfolio.
INVESTMENTS,
RISKS AND PERFORMANCE
Principal
Investment Strategies
The
Fund will normally invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in inflation-protected securities.
The emphasis will be on debt securities issued by the U.S. Treasury (Treasury
Inflation-Protected Securities, or “TIPS”). The principal
value of these securities is periodically adjusted according to the rate of
inflation, and repayment of the original bond principal upon
maturity is guaranteed by the U.S. government.
In
deciding which securities to buy and sell, Loomis Sayles may consider a number
of factors related to the bond issue and the current bond market,
for example, the stability and volatility of a country’s bond markets, the
financial strength of the issuer, current interest rates, current valuations,
Loomis Sayles’ expectations regarding general trends in interest rates and
currency considerations. Loomis Sayles will also consider
how purchasing or selling a bond would impact the overall portfolio’s risk
profile (for example, its sensitivity to currency risk, interest
rate risk and sector-specific risk) and potential return (income and capital
gains).
The
Fund may invest in other securities, including but not limited to
inflation-protected debt securities issued by U.S. government agencies
and
instrumentalities other than the U.S. Treasury, by other entities such as
corporations and foreign governments and by foreign issuers. The
Fund may also invest in nominal (i.e., non-inflation-protected) treasury
securities, corporate bonds, securities issued pursuant to Rule 144A
under the Securities Act of 1933 (“Rule 144A securities”), other
privately placed investments such as private credit investments, structured
notes, collateralized loan obligations, asset-backed securities and
mortgage-related securities, including mortgage dollar rolls, and may
invest up to 10% of its assets in below investment-grade fixed-income securities
(commonly known as “junk bonds”). Below investment-grade
fixed-income securities are rated below investment-grade quality (i.e., none of
the three major rating agencies (Moody’s Investors
Service, Inc., Fitch Investor Services, Inc. or S&P Global Ratings) have
rated the securities in one of their respective top four ratings
categories). The Fund’s fixed-income securities investments may include unrated
securities (securities that are not rated by a rating agency)
if Loomis Sayles determines that the securities are of comparable quality to
rated securities that the Fund may purchase. The Fund may
invest in fixed-income securities of any maturity. The Fund may also invest in
swaps (including credit default swaps, in which one party agrees
to make periodic payments to a counterparty in exchange for the right to receive
a payment in the event of a default of the underlying reference
security) and other derivatives. The Fund may also engage in futures
transactions and foreign currency transactions (such as forward
currency contracts).
Principal
Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose
money by investing in the Fund.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government
agency, and are subject to investment risks, including possible loss of the
principal invested.
The
significance
of any specific risk to an investment in the Fund will vary over time, depending
on the composition of the Fund’s portfolio, market
conditions, and other factors. You should read all of the risk information
presented below carefully, because any one or more of these risks
may result in losses to the Fund.
Inflation/Deflation
Risk
is the risk that the value of assets or income from investments will be worth
less in the future as inflation decreases the
present value of future payments. As
inflation increases, the real value of the Fund’s portfolio could decline.
Inflation rates may change frequently
and drastically. The Fund’s investments may not keep pace with inflation, which
may result in losses to the Fund’s investors. Recently,
inflation rates in the United States and elsewhere have been increasing. There
can be no assurance that this trend will not continue or
that efforts to slow or reverse inflation will not harm the economy and asset
values. Deflation
risk is the risk that prices throughout the economy
decline over time - the opposite of inflation. Deflation may have an adverse
effect on the creditworthiness of issuers and may make issuer
default more likely, which may result in a decline in the value of the Fund’s
portfolio.
TIPS
Risk
is the risk that the securities
will not work as intended. The principal of TIPS increases with inflation and
decreases with deflation.
The interest rate on TIPS is fixed at issuance, but over the life of the bond
this interest may be paid on an increasing or decreasing principal
value that has been adjusted for inflation
based upon an index intended to measure the rate of inflation.
However,
there
can be no assurance
that the relevant index will accurately measure the rate of
inflation.
Although repayment of the original bond principal upon maturity
is guaranteed, the market value of TIPS is not guaranteed, and will
fluctuate.
Interest
Rate Risk
is the risk that the value of the Fund’s investments will fall if interest rates
rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities with relatively longer durations than for funds that invest in
fixed-income securities with shorter durations. The values
of securities with longer maturities are generally more sensitive to
fluctuations in interest rates than other fixed-income securities. In
addition,
an economic downturn or period of rising interest rates could adversely affect
the market for these securities and reduce the Fund’s ability
to sell them, negatively impacting the performance of the Fund. Potential future
changes in government and/or
central bank monetary
policy and
action may
also
affect
the level of interest rates.
Recently,
there have been inflationary price movements, which have caused the fixed income
securities markets to experience heightened levels
of interest volatility and liquidity risk. Monetary policy measures have in the
past, and may in the future, exacerbate risks associated with
rising interest rates.
Below
Investment-Grade Fixed-Income Securities Risk
is the risk that the Fund’s investments in below investment-grade fixed-income
securities
may be subject to greater risks than other fixed-income securities, including
being subject to greater levels of interest rate risk, credit
risk (including a greater risk of default) and liquidity risk. The ability of
the issuer to make principal and interest payments is predominantly
speculative for below investment-grade fixed-income securities.
Derivatives
Risk
is the risk that the value of the Fund’s derivative investments such as forward
currency contracts, structured notes, futures transactions,
and
swap
transactions will fall, for example, because of changes in the value of the
underlying reference instruments, pricing difficulties
or lack of correlation with the underlying investments. The use of derivatives
for other than hedging purposes may be considered a
speculative activity, and involves greater risks than are involved in hedging.
There is also the risk that the Fund may be unable to terminate or
sell a derivative position at an advantageous time or price. The Fund’s
derivative counterparties may experience financial difficulties or otherwise
be unwilling or unable to honor their obligations, possibly resulting in losses
to the Fund. This risk is greater for forward currency contracts,
uncleared swaps and other over-the-counter (“OTC”) traded derivatives. Investing
in derivatives gives rise to other risks, such as leverage
risk, liquidity risk, credit/counterparty risk, interest rate risk and
market/issuer risk. The use of derivatives may cause the Fund to incur
losses greater than those which would have occurred had derivatives not been
used.
Credit/Counterparty
Risk
is the risk that the issuer or guarantor of a fixed-income security in which the
Fund invests, or the counterparty to
a derivative or other transaction, will be unable or unwilling to make timely
payments of interest or principal or to otherwise honor its obligations.
As a result, the Fund may sustain losses or be unable or delayed in its ability
to realize gains.
Currency
Risk
is the risk that the value of the Fund’s investments will fall as a result of
changes in exchange rates. Loomis
Sayles may elect not
to hedge currency risk or may hedge imperfectly, which may cause the Fund to
incur losses that would not have been incurred had the risk
been hedged.
Cybersecurity
and Technology Risk
is the risk associated with the increasing dependence of the Fund, its service
providers, and other market
participants on complex information technology and communications systems. Such
systems are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result
in financial losses to the Fund and its shareholders.
Foreign
Securities Risk
is the risk that the value of the Fund’s foreign investments will fall as a
result of foreign political, social, economic, environmental,
credit, informational or currency changes or other issues relating to foreign
investing generally. Foreign securities may be subject
to higher volatility than U.S. securities, varying degrees of regulation and
limited liquidity. The Fund’s investments in foreign securities
may be subject to foreign withholding or other taxes, which would decrease the
yield on those securities.
Large
Investor Risk is
the risk associated with ownership of shares of the Fund that may be
concentrated in one or a few large investors. Such investors may redeem shares
in large quantities or on a frequent basis. Redemptions by a large investor can
affect the performance of the Fund, may increase realized capital gains,
including short-term capital gains taxable as ordinary income, may accelerate
the realization of taxable income to shareholders and may increase transaction
costs. These transactions potentially limit the use of any capital loss
carryforwards and certain other losses to offset future realized capital gains
(if any). Such transactions may also increase the Fund’s expenses.
Leverage
Risk
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small
index, market or asset price movements into larger changes in value. Use of
derivative instruments (such as futures and forward currency
contracts) may involve leverage. When a derivative is used as a hedge against an
offsetting position that the Fund also holds, any gains
generated by the derivative should be substantially offset by losses on the
hedged instrument, and vice versa. To the extent that the Fund
uses a derivative for purposes other than as a hedge, or if the Fund hedges
imperfectly, the Fund is directly exposed to the risks of that derivative
and any loss generated by the derivative will not be offset by a gain. The use
of leverage increases the impact of gains and losses on the
Fund’s returns, and may lead to significant losses if investments are not
successful.
Liquidity
Risk
is the risk that the Fund may be unable to find a buyer for its investments when
it seeks to sell them or to receive the price it expects.
Events that may lead to increased redemptions, such as market disruptions or
increases in interest rates, may also negatively impact the
liquidity of the Fund’s investments when it needs to dispose of them.
Markets
may become illiquid quickly. If
the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect
the Fund. During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in
a
private placement, such as Rule 144A securities
and privately negotiated credit and other investments,
are generally subject to significant liquidity
risk because they are subject to strict restrictions on resale and there may be
no liquid secondary market or ready purchaser for such securities.
In
other circumstances, liquid investments may become illiquid. Liquidity
issues may also make it difficult to value the Fund’s investments.
The Fund may invest in liquid investments that become illiquid due to financial
distress, or geopolitical events such as sanctions,
trading halts or wars.
Management
Risk
is the risk that Loomis Sayles’ investment techniques will be unsuccessful and
cause the Fund to incur losses.
Market/Issuer
Risk
is the risk that the market value of the Fund’s investments will move up and
down, sometimes rapidly and unpredictably,
based upon overall market and economic conditions, as well as a number of
reasons that directly relate to the issuers of the Fund’s
investments, such as management performance, financial condition and demand for
the issuers’ goods and services.
Mortgage-Related
and Asset-Backed Securities Risk
is the risk associated with the mortgages and assets underlying the securities,
as well as
the risk that the securities may be prepaid and result in the reinvestment of
the prepaid amounts in securities with lower yields than the prepaid
obligations. Conversely, there is a risk that a rise in interest rates will
extend the life of a mortgage-related or asset-backed security beyond
the expected prepayment time, typically reducing the security’s value, which is
called extension risk. The Fund may also incur a loss when
there is a prepayment of securities that were purchased at a premium. It also
includes risks associated with investing in the mortgages underlying
the mortgage-backed securities. The Fund’s investments in other asset-backed
securities are subject to risks similar to those associated
with mortgage-related securities, as well as additional risks associated with
the nature of the assets and the servicing of those assets. The
Fund’s investments in mortgage-related and other asset-backed securities are
also subject to the risks associated with investments in fixed-income
securities generally (e.g., credit/counterparty, liquidity,
inflation
and valuation risks).
Risk/Return
Bar Chart and Table
The
following bar chart and table give an indication of the risks of investing in
the Fund by showing changes in the Fund’s performance from
year to year and by showing how the Fund’s average annual returns for the
one-year, five-year, ten-year and life-of-class periods (as applicable)
compare to those of a broad-based
securities market index that reflects the performance of the overall market
applicable to the Fund
and an additional index that represents the market sectors in which the Fund
primarily invests.
The Fund’s past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future. Updated performance information is available online at
www.loomissayles.com and/or by calling the Fund toll-free at
800-633-3330.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been
waived or reimbursed during the period, total returns would have been
lower.
Total
Returns for Institutional Class Shares
|
| |
|
|
Highest
Quarterly Return:
Second
Quarter 2020, 5.24%
Lowest
Quarterly Return:
Second
Quarter 2022, -6.73% |
|
|
|
|
| |
|
Average
Annual Total Returns |
|
|
|
|
|
(for
the periods ended December 31, 2023) |
Past
1 Year |
Past
5 Years |
Past
10 Years |
Life
of Class N
(2/1/17) |
|
Institutional
Class - Return Before Taxes |
3.63% |
3.36% |
2.26% |
- |
|
Return
After Taxes on Distributions |
2.01% |
1.71% |
1.04% |
- |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
2.13% |
1.92% |
1.22% |
- |
|
Retail
Class - Return Before Taxes |
3.48% |
3.13% |
2.00% |
- |
|
Class
N - Return Before Taxes |
3.69% |
3.43% |
- |
2.57% |
|
Bloomberg
U.S. Aggregate Bond Index1
|
5.53% |
1.10% |
1.81% |
1.27% |
|
|
|
|
| |
|
Average
Annual Total Returns |
|
|
|
|
|
(for
the periods ended December 31, 2023) |
Past
1 Year |
Past
5 Years |
Past
10 Years |
Life
of Class N
(2/1/17) |
|
Bloomberg
U.S. TIPS Index |
3.90% |
3.15% |
2.42% |
2.40% |
| 1 |
Effective
February 1, 2024, the Fund’s primary broad-based performance index changed
to the Bloomberg U.S. Aggregate Bond Index. The Bloomberg U.S. Aggregate
Bond Index is
a broad-based securities market index that represents the overall market
applicable to the Fund. The Fund will retain the Bloomberg U.S. TlPS Index
as its additional benchmark for
performance comparison. |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and
local taxes. Actual after-tax returns depend on an investor’s tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their shares through tax-advantaged arrangements,
such as 401(k) plans, qualified plans, education savings
accounts, such as 529 plans, or individual retirement accounts. The after-tax
returns are shown for the Institutional Class of the Fund.
After-tax returns for the other classes of the Fund will vary. Index performance
reflects no deduction for fees, expenses or taxes.
MANAGEMENT
Investment
Adviser
Loomis
Sayles
Portfolio
Managers
Elaine
Kan, CFA®,
Portfolio
Manager and Rate & Currency Strategist for the Fixed Income group
at
Loomis Sayles, has served as a portfolio
manager of the Fund since 2012.
Kevin
P. Kearns, Portfolio
Manager and Head of the Alpha Strategies group at
Loomis Sayles, has served as a portfolio manager of the Fund since
2012.
PURCHASE
AND SALE OF FUND SHARES
The
following chart
shows the investment minimums
for various types of accounts:
Retail
Class Shares
|
| |
|
Type
of Account |
Minimum
Initial Purchase |
|
Any
account other than those listed below |
$2,500 |
|
For
shareholders participating in Loomis Sayles Funds’ Automatic Investment
Plan |
$1,000 |
|
For
Traditional IRA, Roth IRA, Rollover IRA and SEP-IRA |
$1,000 |
There
is no initial investment minimum for:
|
• |
Fee-based
programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult
your financial representative to determine if your fee based program is
subject to additional or different conditions or
fees. |
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Clients
of a Registered
Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
The
minimum investment requirements for Retail Class shares of the Fund may be
waived or lowered for investments effected through certain
financial intermediaries that have entered into special arrangements with
Natixis Distribution, LLC
(the “Distributor”). Consult your
financial intermediary for additional information regarding the minimum
investment requirement applicable to your investment.
Institutional
Class Shares
Institutional
Class shares of the Fund are generally subject to a minimum initial investment
of $100,000 except
there is no minimum initial investment
for:
|
• |
Fee-based
programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult
your financial representative to determine if your fee based program is
subject to additional or different conditions or
fees. |
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Certain
Individual Retirement Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement
plans invested in the Fund. |
|
• |
Clients
of a Registered
Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
|
• |
Fund
Trustees,
former Fund trustees, employees of affiliates of the Loomis Sayles Funds
and other individuals who are affiliated with any Loomis
Sayles Fund (this also applies to any spouse, parents, children, siblings,
grandparents, grandchildren and in-laws of those mentioned)
and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis Advisors,
clients of Natixis Advisors,
and its affiliates may purchase Institutional Class shares of the Fund below
the
stated minimums.
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts
(such as wrap accounts) where an advisory fee is paid to the broker-dealer or
other financial intermediary.
There is no subsequent investment
minimum for these shares. There is no initial investment minimum
for:
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
|
• |
Funds
of funds
that are distributed by the Distributor. |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes
will have enough assets to exceed the investment minimum requirement within a
relatively short period of time following the establishment
date of such accounts in Class N. The
Distributor and the Fund, at any time, reserve the right to liquidate these
accounts or any
other account that does not meet the eligibility requirements of this
class.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and
accounts of registered investment advisers may be subject to the investment
minimums described above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your financial adviser, through your broker-dealer,
directly from the Fund by writing to the Fund at Loomis Sayles Funds, P.O. Box
219594, Kansas City, MO 64121-9594, by exchange,
by wire, by internet at www.loomissayles.com, by telephone at 800-633-3330,
through the Automated Clearing House system, or,
in the case of redemptions, by the Systematic Withdrawal Plan. See the section
“How Fund Shares are Priced” in the Prospectus for details.
TAX
INFORMATION
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors
that qualify for tax-advantaged treatment under U.S. federal income tax law
generally. Investments in such tax-advantaged plans will
generally be taxed only upon withdrawal of monies from the tax-advantaged
arrangement.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies
may pay the intermediary for the sale of the Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to recommend the
Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more
information.
Loomis
Sayles Institutional High Income Fund
INVESTMENT
OBJECTIVE
The
Fund’s investment objective is high total investment return through a
combination of current income and capital appreciation.
FUND
FEES & EXPENSES
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such
as brokerage commissions and other fees to financial intermediaries, which are
not reflected in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
| |
|
(expenses
that you pay each year as a percentage of the value of your
investment) |
Institutional
Class |
|
Management
fees1
|
0.58% |
|
Distribution
and/or service (12b-1) fees |
0.00% |
|
Other
expenses2
|
0.12% |
|
Total
annual fund operating expenses |
0.70% |
|
Fee
waiver and/or expense reimbursement3
|
0.00% |
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.70% |
| 1 |
The
Fund’s operating expenses have been restated to reflect a reduction in
management fees, effective as of July 1, 2023, as if such reduction had
been in effect during the fiscal year ended
September 30, 2023. The information has been restated to better reflect
anticipated expenses of the Fund. |
| 2 |
Other
expenses include acquired fund fees and expenses of less than
0.01%. |
| 3 |
Loomis,
Sayles & Company, L.P. (“Loomis Sayles” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating
expenses to 0.73%
of the Fund’s average daily net assets, exclusive of brokerage expenses,
interest expense, taxes, acquired fund fees and expenses, organizational
and extraordinary
expenses, such as litigation and indemnification expenses. This
undertaking is in effect through January 31, 2025
and may be terminated before then only with the consent
of the Fund’s Board of Trustees. The Adviser will be permitted to
recover
management fees waived and/or expenses reimbursed to the extent that
expenses in later periods fall
below
both (1) the class’ applicable expense limitation at the time such amounts
were waived/reimbursed and (2) the class’ current applicable expense
limitation. The Fund will not
be obligated to repay any such waived/reimbursed fees and expenses more
than one year after the end of the fiscal year in which the fees or
expenses were waived/reimbursed. |
Example
The
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the Fund for the time periods indicated and
then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year and that
the Fund’s operating expenses remain the same. The
example does not take into account brokerage commissions and other fees to
financial intermediaries that you may pay on your purchases
and sales of shares of the Fund. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
| |
|
|
1
year |
3
years |
5
years |
10
years |
|
Institutional
Class |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes for
you if your Fund shares are held in a taxable account. These
costs, which are not reflected in annual fund operating expenses or in the
example, affect the Fund’s performance. During its most recently
ended fiscal year, the Fund’s portfolio turnover rate was
64%
of the average value of its portfolio.
INVESTMENTS,
RISKS AND PERFORMANCE
Principal
Investment Strategies
The
Fund will invest primarily in below investment-grade fixed-income securities
(commonly known as “junk bonds”) and other securities that
are expected to produce a relatively high level of income (including
income-producing preferred stocks and common stocks). Below investment-grade
fixed-income securities are rated below investment-grade quality (i.e., none of
the three major ratings agencies (Moody’s Investors
Service, Inc., Fitch Investor Services, Inc. or S&P Global Ratings) have
rated the securities in one of their respective top four ratings
categories). The Fund’s fixed-income securities investments may include unrated
securities (securities that are not rated by a rating
agency)
if Loomis Sayles determines that the securities are of comparable quality to
rated securities that the Fund may purchase. The Fund may
invest in fixed-income securities of any maturity.
In
deciding which securities to buy and sell, Loomis Sayles may consider a number
of factors related to the bond issue and the current bond market,
including, for example, the stability and volatility of a country’s bond
markets, the financial strength of the issuer, current interest rates,
current valuations, Loomis Sayles’ expectations regarding general trends in
interest rates and currency considerations. Loomis Sayles will
also consider how purchasing or selling a bond would impact the overall
portfolio’s risk profile (for example, its sensitivity to currency risk,
interest rate risk and sector-specific risk) and potential return (income and
capital gains).
Three
themes typically drive the Fund’s investment approach. First, Loomis Sayles
generally seeks fixed-income securities that are attractively
valued relative to the Loomis Sayles’ credit research team’s assessment of
credit risk. The broad coverage combined with the objective
of identifying attractive investment opportunities makes this an important
component of the investment approach. Second, the Fund
may invest significantly in securities the prices of which Loomis Sayles
believes are more sensitive to events related to the underlying issuer
than to changes in general interest rates or overall market default rates. These
securities may not have a direct correlation with changes in
interest rates, thus helping to manage interest rate risk and to offer
diversified sources for return. Third, Loomis Sayles analyzes different
sectors
of the economy and differences in the yields (“spreads”) of various fixed-income
securities (U.S. governments, investment-grade corporates,
securitized assets, high-yield corporates, emerging markets, non-U.S. sovereigns
and credits, convertibles, bank loans and municipals)
in an effort to find securities that it believes may produce attractive returns
for the Fund in comparison to their risk.
The
Fund may invest up
to 50% of its assets in foreign
securities, including emerging market securities. The Fund may invest without
limit in
obligations of supranational entities (e.g., the World Bank). Although certain
securities purchased by the Fund may be issued by domestic companies
incorporated outside of the United States, the Adviser does not consider these
securities to be foreign if the issuer is included in the
U.S. fixed-income indices published by Bloomberg.
The
fixed-income securities in which the Fund may invest include, among other
instruments, corporate bonds and other debt securities (including
junior and senior loans), U.S. government securities, commercial paper,
collateralized loan obligations, zero-coupon securities, mortgage-backed
securities, including mortgage dollar rolls, stripped mortgage-backed
securities, and
collateralized
mortgage obligations, other
asset-backed
securities, when-issued securities, real estate investment trusts (“REITs”),
securities issued pursuant to Rule 144A under the
Securities Act of 1933 (“Rule 144A securities”), other
privately placed investments such as private credit investments, repurchase
agreements
and convertible securities. The Fund may also engage in options and futures
transactions, foreign currency transactions (such as forward
currency contracts) and swap transactions (including credit default swaps, in
which one party agrees to make periodic payments to a counterparty
in exchange for the right to receive a payment in the event of a default of the
underlying reference security).
Principal
Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose
money by investing in the Fund.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government
agency, and are subject to investment risks, including possible loss of the
principal invested.
The
significance
of any specific risk to an investment in the Fund will vary over time, depending
on the composition of the Fund’s portfolio, market
conditions, and other factors. You should read all of the risk information
presented below carefully, because any one or more of these risks
may result in losses to the Fund.
Below
Investment-Grade Fixed-Income Securities Risk
is the risk that the Fund’s investments in below investment-grade fixed-income
securities
may be subject to greater risks than other fixed-income securities, including
being subject to greater levels of interest rate risk, credit
risk (including a greater risk of default) and liquidity risk. The ability of
the issuer to make principal and interest payments is predominantly
speculative for below investment-grade fixed-income securities.
Credit/Counterparty
Risk
is the risk that the issuer or guarantor of a fixed-income security in which the
Fund invests, or the counterparty to
a derivative or other transaction, will be unable or unwilling to make timely
payments of interest or principal or to otherwise honor its obligations.
As a result, the Fund may sustain losses or be unable or delayed in its ability
to realize gains.
Currency
Risk
is the risk that the value of the Fund’s investments will fall as a result of
changes in exchange rates. Loomis
Sayles may elect not
to hedge currency risk or may hedge imperfectly, which may cause the Fund to
incur losses that would not have been incurred had the risk
been hedged.
Equity
Securities Risk
is the risk that the value of the
Fund’s investments in equity securities could be subject to unpredictable
declines in the
value of individual securities and periods of below-average performance in
individual securities or in the equity market as a whole
In
the event
an issuer is liquidated or declares bankruptcy, the claims of owners of the
issuer’s bonds generally take precedence over the claims of those
who own preferred stock or common stock.
Market/Issuer
Risk
is the risk that the market value of the Fund’s investments will move up and
down, sometimes rapidly and unpredictably,
based upon overall market and economic conditions, as well as a number of
reasons that directly relate to the issuers of the Fund’s
investments, such as management performance, financial condition and demand for
the issuers’ goods and services.
Cybersecurity
and Technology Risk
is the risk associated with the increasing dependence of the Fund, its service
providers, and other market
participants on complex information technology and communications systems. Such
systems are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result
in financial losses to the Fund and its shareholders.
Derivatives
Risk
is the risk that the value of the Fund’s derivative investments such as forward
currency contracts, options, futures transactions
and swap transactions will fall, for example, because of changes in the value of
the underlying reference instruments, pricing difficulties
or lack of correlation with the underlying investments. The use of derivatives
for other than hedging purposes may be considered a
speculative activity, and involves greater risks than are involved in hedging.
There is also the risk that the Fund may be unable to terminate or
sell a derivative position at an advantageous time or price. The Fund’s
derivative counterparties may experience financial difficulties or otherwise
be unwilling or unable to honor their obligations, possibly resulting in losses
to the Fund. This risk is greater for forward currency contracts,
uncleared swaps and other over-the-counter (“OTC”) traded derivatives. Investing
in derivatives gives rise to other risks, such as leverage
risk, liquidity risk, credit/counterparty risk, interest rate risk and
market/issuer risk. The use of derivatives may cause the Fund to incur
losses greater than those which would have occurred had derivatives not been
used.
Emerging
Markets Risk
is the risk that the Fund’s investments in emerging markets may face greater
foreign securities risk. Emerging markets
investments are subject to greater risks arising from political or economic
instability, war,
nationalization
or confiscatory taxation, currency
exchange or
repatriation restrictions, sanctions by other countries (such as the United
States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments,
and
an issuer’s unwillingness or inability to make dividend,
principal
or interest payments on its securities.
Emerging markets companies may be smaller and have shorter operating histories
than companies
in developed markets.
Foreign
Securities Risk
is the risk that the value of the Fund’s foreign investments will fall as a
result of foreign political, social, economic, environmental,
credit, informational or currency changes or other issues relating to foreign
investing generally. Foreign securities may be subject
to higher volatility than U.S. securities, varying degrees of regulation and
limited liquidity. The Fund’s investments in foreign securities
may be subject to foreign withholding or other taxes, which would decrease the
yield on those securities.
Large
Investor Risk is
the risk associated with ownership of shares of the Fund that may be
concentrated in one or a few large investors. Such investors may redeem shares
in large quantities or on a frequent basis. Redemptions by a large investor can
affect the performance of the Fund, may increase realized capital gains,
including short-term capital gains taxable as ordinary income, may accelerate
the realization of taxable income to shareholders and may increase transaction
costs. These transactions potentially limit the use of any capital loss
carryforwards and certain other losses to offset future realized capital gains
(if any). Such transactions may also increase the Fund’s expenses.
Interest
Rate Risk
is the risk that the value of the Fund’s investments will fall if interest rates
rise. Generally, the value of fixed-income securities
rises when prevailing interest rates fall and falls when interest rates rise.
Interest rate risk generally is greater for funds that invest in fixed-income
securities with relatively longer durations than for funds that invest in
fixed-income securities with shorter durations. The values
of zero-coupon securities and securities with longer maturities are generally
more sensitive to fluctuations in interest rates than other fixed-income
securities. In addition, an economic downturn or period of rising interest rates
could adversely affect the market for these securities
and reduce the Fund’s ability to sell them, negatively impacting the performance
of the Fund. Potential future changes in government
and/or
central bank monetary
policy and
action may
also
affect
the level of interest rates.
Recently,
there have been inflationary price movements, which have caused the fixed income
securities markets to experience heightened levels
of interest volatility and liquidity risk. Monetary policy measures have in the
past, and may in the future, exacerbate risks associated with
rising interest rates.
Leverage
Risk
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small
index, market or asset price movements into larger changes in value. Use of
derivative instruments (such as futures and forward currency
contracts) may involve leverage. When a derivative is used as a hedge against an
offsetting position that the Fund also holds, any gains
generated by the derivative should be substantially offset by losses on the
hedged instrument, and vice versa. To the extent that the Fund
uses a derivative for purposes other than as a hedge, or if the Fund hedges
imperfectly, the Fund is directly exposed to the risks of that derivative
and any loss generated by the derivative will not be offset by a gain. The use
of leverage increases the impact of gains and losses on
the
Fund’s returns, and may lead to significant losses if investments are not
successful.
Liquidity
Risk
is the risk that the Fund may be unable to find a buyer for its investments when
it seeks to sell them or to receive the price it expects.
Events that may lead to increased redemptions, such as market disruptions or
increases in interest rates, may also negatively impact the
liquidity of the Fund’s investments when it needs to dispose of them.
Markets
may become illiquid quickly. If
the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect
the Fund. During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a
private placement, such as Rule 144A securities
and privately negotiated credit and other investments,
are generally subject to significant liquidity
risk because they are subject to strict restrictions on resale and there may be
no liquid secondary market or ready purchaser for such securities.
In
other circumstances, liquid investments may become illiquid. Liquidity
issues may also make it difficult to value the Fund’s investments.
The Fund may invest in liquid investments that become illiquid due to financial
distress, or geopolitical events such as sanctions,
trading halts or wars.
Management
Risk
is the risk that Loomis Sayles’ investment techniques will be unsuccessful and
cause the Fund to incur losses.
Mortgage-Related
and Asset-Backed Securities Risk
is the risk associated with the mortgages and assets underlying the securities,
as well as
the risk that the securities may be prepaid and result in the reinvestment of
the prepaid amounts in securities with lower yields than the prepaid
obligations. Conversely, there is a risk that a rise in interest rates will
extend the life of a mortgage-related or asset-backed security beyond
the expected prepayment time, typically reducing the security’s value, which is
called extension risk. The Fund may also incur a loss when
there is a prepayment of securities that were purchased at a premium. It also
includes risks associated with investing in the mortgages underlying
the mortgage-backed securities. The Fund’s investments in other asset-backed
securities are subject to risks similar to those associated
with mortgage-related securities, as well as additional risks associated with
the nature of the assets and the servicing of those assets. The
Fund’s investments in mortgage-related and other asset-backed securities are
also subject to the risks associated with investments in fixed-income
securities generally (e.g., credit/counterparty, liquidity,
inflation
and valuation risks).
REITs
Risk
is the risk that the value of the Fund’s investments in REITs will fall as a
result of changes in underlying real estate values, rising interest
rates, limited diversification of holdings, higher costs and prepayment risk
associated with related mortgages, as well as other risks particular
to investments in real estate. Many REITs are highly leveraged, increasing their
risk. The
Fund will indirectly bear its proportionate
share of expenses, including management fees, paid by each REIT in which it
invests in addition to the expenses of the Fund.
Risk/Return
Bar Chart and Table
The
following bar chart and table give an indication of the risks of investing in
the Fund by showing changes in the Fund’s performance from
year to year and by showing how the Fund’s average annual returns for the
one-year, five-year and ten-year periods compare to those of a
broad-based
securities market index that reflects the performance of the overall market
applicable to the Fund and an additional index that represents
the market sectors in which the Fund primarily invests.
The Fund’s past performance (before and after taxes) does not necessarily
indicate
how the Fund will perform in the future. Updated performance information is
available online at www.loomissayles.com and/or by calling
the Fund toll-free at 800-633-3330.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been
waived or reimbursed during the period, total returns would have been
lower.
Total
Returns for Institutional Class Shares
|
| |
|
|
Highest
Quarterly Return:
Second
Quarter 2020, 11.00%
Lowest
Quarterly Return:
First
Quarter 2020, -18.43% |
|
|
|
| |
|
Average
Annual Total Returns |
|
|
|
|
(for
the periods ended December 31, 2023) |
Past
1 Year |
Past
5 Years |
Past
10 Years |
|
Institutional
Class - Return Before Taxes |
9.98% |
3.76% |
3.51% |
|
Return
After Taxes on Distributions |
7.33% |
1.50% |
0.90% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
5.92% |
1.98% |
1.61% |
|
Bloomberg
U.S. Aggregate Bond Index1
|
5.53% |
1.10% |
1.81% |
|
Bloomberg
U.S. Corporate High-Yield Bond Index |
13.44% |
5.37% |
4.60% |
| 1 |
Effective
February 1, 2024, the Fund’s primary broad-based performance index changed
to the Bloomberg U.S. Aggregate Bond Index. The Bloomberg U.S. Aggregate
Bond Index is
a broad-based securities market index that represents the overall market
applicable to the Fund. The Fund will retain the Bloomberg U.S. Corporate
High-Yield Bond Index as its additional
benchmark for performance comparison. |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and
local taxes. Actual after-tax returns depend on an investor’s tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their shares through tax-advantaged arrangements,
such as 401(k) plans, qualified plans, education savings
accounts, such as 529 plans, or individual retirement accounts. The after-tax
returns are shown for the Institutional Class of the Fund.
Index performance reflects no deduction for fees, expenses or
taxes.
MANAGEMENT
Investment
Adviser
Loomis
Sayles
Portfolio
Managers
Matthew
J. Eagan, CFA®,
Portfolio
Manager and Co-Head of the Full Discretion Team and Director at
Loomis Sayles, has served as a portfolio
manager of the Fund since 2012 and was an associate portfolio manager of the
Fund from 2007 to 2012.
Brian
P. Kennedy, Co-Portfolio
Manager on the Full Discretion Team at
Loomis Sayles, has served as a portfolio manager of the Fund since 2021.
Peter
S. Sheehan, Co-Portfolio Manager on the Full Discretion Team at
Loomis Sayles, has served as a portfolio manager of the Fund since
2023.
Todd
P. Vandam, CFA®,
Co-Portfolio
Manager on the Full Discretion Team at
Loomis Sayles, has served as a portfolio manager of the
Fund
since 2021.
PURCHASE
AND SALE OF FUND SHARES
The
following chart
shows the investment minimums
for various types of accounts:
Institutional
Class Shares
Institutional
Class shares of the Fund are generally subject to a minimum initial investment
of $3,000,000 and a minimum subsequent investment
of $50,000, except there is no minimum initial or subsequent investment
for:
|
• |
Fund
Trustees,
former Fund trustees, employees of affiliates of the Loomis Sayles Funds
and other individuals who are affiliated with any Loomis
Sayles Fund (this also applies to any spouse, parents, children, siblings,
grandparents, grandchildren and in-laws of those mentioned)
and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis Advisors, LLC
(“Natixis Advisors”),
clients of Natixis Advisors,
and its affiliates may purchase Institutional Class shares
of the Fund below the stated minimums. The minimum may also be waived for the
clients of financial consultants and financial institutions
that have a business relationship with Loomis Sayles, if such client invests at
least $1,000,000 in the Fund.
The
Fund’s shares are available for purchase and are redeemable on any business day
directly from the Fund by writing to the Fund at Loomis
Sayles Funds, P.O. Box 219594, Kansas City, MO 64121-9594, by exchange, by wire,
by internet at www.loomissayles.com, by telephone
at 800-633-3330, through the Automated Clearing House system, or, in the case of
redemptions, by the Systematic Withdrawal Plan.
See the section “How Fund Shares are Priced” in the Prospectus for
details.
TAX
INFORMATION
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors
that qualify for tax-advantaged treatment under U.S. federal income tax law
generally. Investments in such tax-advantaged plans will
generally be taxed only upon withdrawal of monies from the tax-advantaged
arrangement.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies
may pay the intermediary for the sale of the Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to recommend the
Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more
information.
Loomis
Sayles Small Cap Growth Fund
INVESTMENT
OBJECTIVE
The
Fund’s investment objective is long-term capital growth from investments in
common stocks or other equity securities.
FUND
FEES & EXPENSES
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such
as brokerage commissions and other fees to financial intermediaries, which are
not reflected in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
|
| |
|
(expenses
that you pay each year as a percentage of the value of your
investment) |
Institutional
Class |
Retail
Class |
Class
N |
|
Management
fees |
0.75% |
0.75% |
0.75% |
|
Distribution
and/or service (12b-1) fees |
0.00% |
0.25% |
0.00% |
|
Other
expenses |
0.19% |
0.19% |
0.08% |
|
Total
annual fund operating expenses |
0.94% |
1.19% |
0.83% |
|
Fee
waiver and/or expense reimbursement1
|
% |
% |
% |
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.94% |
1.19% |
0.83% |
| 1 |
Loomis,
Sayles & Company, L.P. (“Loomis Sayles” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating
expenses to 0.95%,
1.20%
and 0.90%
of the Fund’s average daily net assets for Institutional Class shares,
Retail Class shares and Class N shares, respectively, exclusive of
brokerage
expenses, interest expense, taxes, acquired fund fees and expenses,
organizational and extraordinary expenses, such as litigation and
indemnification expenses. This undertaking
is in effect through January
31, 2025
and may be terminated before then only with the consent of the Fund’s
Board of Trustees. The Adviser will be permitted to recover,
on a class-by-class basis, management fees waived and/or expenses
reimbursed to the extent that expenses in later periods fall
below
both (1) the class’ applicable expense limitation
at the time such amounts were waived/reimbursed and (2) the class’ current
applicable expense limitation. The Fund will not be obligated to repay any
such waived/reimbursed
fees and expenses more than one year after the end of the fiscal year in
which the fees or expenses were
waived/reimbursed. |
Example
The
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the Fund for the time periods indicated and
then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year and that
the Fund’s operating expenses remain the same. The
example does not take into account brokerage commissions and other fees to
financial intermediaries that you may pay on your purchases
and sales of shares of the Fund. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
| |
|
|
1
year |
3
years |
5
years |
10
years |
|
Institutional
Class |
$ |
|
$ |
|
$ |
|
$ |
|
|
Retail
Class |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes for
you if your Fund shares are held in a taxable account. These
costs, which are not reflected in annual fund operating expenses or in the
example, affect the Fund’s performance. During its most recently
ended fiscal year, the Fund’s portfolio turnover rate was
37%
of the average value of its portfolio.
INVESTMENTS,
RISKS AND PERFORMANCE
Principal
Investment Strategies
The
Fund normally will invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in the equity securities of “small-cap
companies,” including preferred stocks, warrants, securities convertible into
common or preferred stocks and other equity-like interests
in an entity. Currently, the Fund defines a small-cap company to be one whose
market capitalization falls
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 companies of any size, including large-capitalization
companies.
In
deciding which securities to buy and sell, Loomis Sayles typically seeks to
identify companies that it 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 and sell
decisions.
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. Although certain equity securities purchased by the
Fund may be issued by domestic companies incorporated
outside of the United States, the Adviser does not consider these securities to
be foreign if they are included in the U.S. equity indices
published by S&P Global Ratings or Russell Investments. The Fund may also
invest in securities issued pursuant to Rule 1444A under
the Securities Act of 1933 (“Rule 144A securities”)
and other privately placed investments such as private equity
investments.
The
Fund may engage, for hedging and investment purposes, in foreign currency
transactions (such as forward currency contracts), options and
futures transactions.
Principal
Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You
may lose
money by investing in the Fund.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government
agency, and are subject to investment risks, including possible loss of the
principal invested.
The
significance
of any specific risk to an investment in the Fund will vary over time, depending
on the composition of the Fund’s portfolio, market
conditions, and other factors. You should read all of the risk information
presented below carefully, because any one or more of these risks
may result in losses to the Fund.
Equity
Securities Risk
is the risk that the value of a
stock may decline for a number of reasons that relate directly to the issuer,
such as management
performance, financial leverage and reduced demand for the issuer’s goods and
services, or the equity markets generally. Growth
stocks are generally more sensitive to market movements than other types of
stocks primarily because their stock prices are based heavily
on future expectations. If the Adviser’s assessment of the prospects for a
company’s growth is wrong, or if the Adviser’s judgment of how
other investors will value the company’s growth is wrong, then the price of the
company’s stock may fall or not approach the value that the
Adviser has placed on it.
In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s bonds generally take
precedence over the claims of those who own preferred stock or common
stock.
Small-Capitalization
Companies Risk
is the risk that the Fund’s investments may be subject to more abrupt price
movements, limited markets,
increased volatility and less liquidity than investments in larger, more
established companies, which could adversely affect the value of
the portfolio.
Market/Issuer
Risk
is the risk that the market value of the Fund’s investments will move up and
down, sometimes rapidly and unpredictably,
based upon overall market and economic conditions, as well as a number of
reasons that directly relate to the issuers of the Fund’s
investments, such as management performance, financial condition and demand for
the issuers’ goods and services.
Management
Risk
is the risk that Loomis Sayles’ investment techniques will be unsuccessful and
cause the Fund to incur losses.
Credit/Counterparty
Risk
is the risk that the issuer or guarantor of a fixed-income security in which the
Fund invests, or the counterparty to
a derivative or other transaction, will be unable or unwilling to make timely
payments of interest or principal or to otherwise honor its obligations.
As a result, the Fund may sustain losses or be unable or delayed in its ability
to realize gains.
Currency
Risk
is the risk that the value of the Fund’s investments will fall as a result of
changes in exchange rates. Loomis
Sayles may elect not
to hedge currency risk or may hedge imperfectly, which may cause the Fund to
incur losses that would not have been incurred had the risk
been hedged.
Cybersecurity
and Technology Risk
is the risk associated with the increasing dependence of the Fund, its service
providers, and other market
participants on complex information technology and communications systems. Such
systems are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result
in financial losses to the Fund and its
shareholders.
Derivatives
Risk
is the risk that the value of the Fund’s derivative investments such as forward
currency contracts, options and futures transactions
will fall, for example, because of changes in the value of the underlying
reference instruments, pricing difficulties or lack of correlation
with the underlying investments. The use of derivatives for other than hedging
purposes may be considered a speculative activity, and
involves greater risks than are involved in hedging. There is also the risk that
the Fund may be unable to terminate or sell a derivative position
at an advantageous time or price. The Fund’s derivative counterparties may
experience financial difficulties or otherwise be unwilling
or unable to honor their obligations, possibly resulting in losses to the Fund.
This risk is greater for forward currency contracts and
other over-the-counter (“OTC”) traded derivatives. Investing in derivatives
gives rise to other risks, such as leverage risk, liquidity risk, credit/counterparty
risk, interest rate risk and market/issuer risk. The use of derivatives may
cause the Fund to incur losses greater than those which
would have occurred had derivatives not been
used.
Emerging
Markets Risk
is the risk that the Fund’s investments in emerging markets may face greater
foreign securities risk. Emerging markets
investments are subject to greater risks arising from political or economic
instability, war,
nationalization
or confiscatory taxation, currency
exchange or
repatriation restrictions, sanctions by other countries (such as the United
States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments,
and
an issuer’s unwillingness or inability to make dividend,
principal
or interest payments on its securities.
Emerging markets companies may be smaller and have shorter operating histories
than companies
in developed markets.
Foreign
Securities Risk
is the risk that the value of the Fund’s foreign investments will fall as a
result of foreign political, social, economic, environmental,
credit, informational or currency changes or other issues relating to foreign
investing generally. Foreign securities may be subject
to higher volatility than U.S. securities, varying degrees of regulation and
limited liquidity. The Fund’s investments in foreign securities
may be subject to foreign withholding or other taxes, which would decrease the
yield on those securities.
Large
Investor Risk
is the risk associated with ownership of shares of the Fund that may be
concentrated in one or a few large investors. Such
investors may redeem shares in large quantities or on a frequent basis.
Redemptions by a large investor can affect the performance of the
Fund, may increase realized capital gains, including short-term capital gains
taxable as ordinary income, may accelerate the realization of taxable
income to shareholders and may increase transaction costs. These transactions
potentially limit the use of any capital loss carryforwards
and certain other losses to offset future realized capital gains (if any). Such
transactions may also increase the Fund’s
expenses.
Leverage
Risk
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small
index, market or asset price movements into larger changes in value. Use of
derivative instruments (such as futures and forward currency
contracts) may involve leverage. When a derivative is used as a hedge against an
offsetting position that the Fund also holds, any gains
generated by the derivative should be substantially offset by losses on the
hedged instrument, and vice versa. To the extent that the Fund
uses a derivative for purposes other than as a hedge, or if the Fund hedges
imperfectly, the Fund is directly exposed to the risks of that derivative
and any loss generated by the derivative will not be offset by a gain. The use
of leverage increases the impact of gains and losses on the
Fund’s returns, and may lead to significant losses if investments are not
successful.
Liquidity
Risk
is the risk that the Fund may be unable to find a buyer for its investments when
it seeks to sell them or to receive the price it expects.
Events that may lead to increased redemptions, such as market disruptions or
increases in interest rates, may also negatively impact the
liquidity of the Fund’s investments when it needs to dispose of them.
Markets
may become illiquid quickly. If
the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect
the Fund. During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a
private placement, such as Rule 144A securities
and privately negotiated equity and other investments,
are generally subject to significant liquidity
risk because they are subject to strict restrictions on resale and there may be
no liquid secondary market or ready purchaser for such securities.
In
other circumstances, liquid investments may become illiquid. Liquidity
issues may also make it difficult to value the Fund’s investments.
The Fund may invest in liquid investments that become illiquid due to financial
distress, or geopolitical events such as sanctions,
trading halts or wars.
Risk/Return
Bar Chart and Table
The
following bar chart and table give an indication of the risks of investing in
the Fund by showing changes in the Fund’s performance from year to year and by
showing how the Fund’s average annual returns for the one-year,
five-year
and ten-year
periods compare to those of a broad-based
securities market index that reflects the performance of the overall market
applicable to the Fund and an additional index that represents the market
sectors in which the Fund primarily invests.
The Fund’s past performance
(before and after taxes) does not necessarily indicate how the Fund will perform
in the future. Updated performance information is available
online at www.loomissayles.com
and/or by calling
the Fund toll-free at 800-633-3330.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been
waived or reimbursed during the period, total returns would have been
lower.
Total
Returns for Institutional Class Shares
|
| |
|
|
Highest
Quarterly Return:
Second
Quarter 2020,
30.39%
Lowest
Quarterly Return:
First
Quarter 2020,
-24.14% |
|
|
|
| |
|
Average
Annual Total Returns |
|
|
|
|
(for
the periods ended December 31, 2023) |
Past
1 Year |
Past
5 Years |
Past
10 Years |
|
Institutional
Class - Return Before Taxes |
11.92% |
10.01% |
8.29% |
|
Return
After Taxes on Distributions |
11.32% |
8.32% |
6.36% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
7.50% |
7.97% |
6.36% |
|
Retail
Class - Return Before Taxes |
11.66% |
9.74% |
8.02% |
|
Class
N - Return Before Taxes |
12.06% |
10.13% |
8.41% |
|
Russell
3000® Index1
|
% |
% |
% |
|
Russell
2000® Growth Index |
18.66% |
9.22% |
7.16% |
| 1 |
Effective
February 1, 2024, the Fund’s primary broad-based performance index changed
to the Russell 3000® Index. The Russell 3000® Index is a broad-based
securities market index
that represents the overall market applicable to the Fund. The Fund will
retain the Russell 2000® Growth Index as its additional benchmark for
performance comparison. |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and
local taxes. Actual
after-tax returns depend on an investor’s tax situation and may differ from
those shown. After-tax returns shown are not
relevant to investors who hold their shares through tax-advantaged arrangements,
such as 401(k) plans, qualified plans, education savings
accounts, such as 529 plans, or individual retirement accounts.
The
after-tax returns are shown for the Institutional Class of the Fund.
After-tax returns for the other classes of the Fund will vary.
Index
performance reflects no deduction for fees, expenses or
taxes.
MANAGEMENT
Investment
Adviser
Loomis
Sayles
Portfolio
Managers
Mark
F. Burns, CFA®,
Co-Portfolio
Manager at
Loomis Sayles, has served as a portfolio manager of the Fund since
2005.
John
J. Slavik, CFA®,
Co-Portfolio
Manager at
Loomis Sayles, has served as a portfolio manager of the Fund since
2005.
PURCHASE
AND SALE OF FUND SHARES
The
following chart
shows the investment minimums
for various types of accounts:
Retail
Class Shares
|
| |
|
Type
of Account |
Minimum
Initial Purchase |
|
Any
account other than those listed below |
$2,500 |
|
For
shareholders participating in Loomis Sayles Funds’ Automatic Investment
Plan |
$1,000 |
|
For
Traditional IRA, Roth IRA, Rollover IRA and SEP-IRA |
$1,000 |
There
is no initial investment minimum for:
|
• |
Fee-based
programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult
your financial representative to determine if your fee based program is
subject to additional or different conditions or
fees. |
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Clients
of a Registered
Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
The
minimum investment requirements for Retail Class shares of the Fund may be
waived or lowered for investments effected through certain
financial intermediaries that have entered into special arrangements with
Natixis Distribution, LLC
(the “Distributor”). Consult your
financial intermediary for additional information regarding the minimum
investment requirement applicable to your investment.
Institutional
Class Shares
Institutional
Class shares of the Fund are generally subject to a minimum initial investment
of $100,000 except
there is no minimum initial investment
for:
|
• |
Fee-based
programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult
your financial representative to determine if your fee based program is
subject to additional or different conditions or
fees. |
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Certain
Individual Retirement Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement
plans invested in the Fund. |
|
• |
Clients
of a Registered
Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
|
• |
Fund
Trustees,
former Fund trustees, employees of affiliates of the Loomis Sayles Funds
and other individuals who are affiliated with any Loomis
Sayles Fund (this also applies to any spouse, parents, children, siblings,
grandparents, grandchildren and in-laws of those mentioned)
and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis Advisors,
LLC (“Natixis Advisors”),
clients of Natixis Advisors,
and its affiliates may purchase Institutional Class shares
of the Fund below the stated minimums.
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts
(such as wrap accounts) where an advisory fee is paid to the broker-dealer or
other financial intermediary.
There is no subsequent investment
minimum for these shares. There is no initial investment minimum
for:
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
|
• |
Funds
of funds
that are distributed by the Distributor. |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes
will have enough assets to exceed the investment minimum requirement within a
relatively short period of time following the establishment
date of such accounts in Class N. The
Distributor and the Fund, at any time, reserve the right to liquidate these
accounts or any
other account that does not meet the eligibility requirements of this
class.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts
and
accounts of registered investment advisers may be subject to the investment
minimums described above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your financial adviser, through your broker-dealer,
directly from the Fund by writing to the Fund at Loomis Sayles Funds, P.O. Box
219594, Kansas City, MO 64121-9594, by exchange,
by wire, by internet at www.loomissayles.com, by telephone at 800-633-3330,
through the Automated Clearing House system, or,
in the case of redemptions, by the Systematic Withdrawal Plan. See the section
“How Fund Shares are Priced” in the Prospectus for details.
TAX
INFORMATION
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors
that qualify for tax-advantaged treatment under U.S. federal income tax law
generally. Investments in such tax-advantaged plans will
generally be taxed only upon withdrawal of monies from the tax-advantaged
arrangement.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies
may pay the intermediary for the sale of the Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to recommend the
Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more
information.
Loomis
Sayles Small Cap Value Fund
INVESTMENT
OBJECTIVE
The
Fund’s investment objective is long-term capital growth from investments in
common stocks or other equity securities.
FUND
FEES & EXPENSES
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such
as brokerage commissions and other fees to financial intermediaries, which are
not reflected in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
|
|
| |
|
(expenses
that you pay each year as a percentage of the value of your
investment) |
Institutional
Class |
Retail
Class |
Admin
Class |
Class
N |
|
Management
fees |
0.75% |
0.75% |
0.75% |
0.75% |
|
Distribution
and/or service (12b-1) fees |
0.00% |
0.25% |
0.25% |
0.00% |
|
Other
expenses |
0.21% |
0.21% |
0.46%1
|
0.12% |
|
Total
annual fund operating expenses |
0.96% |
1.21% |
1.46% |
0.87% |
|
Fee
waiver and/or expense reimbursement2
|
0.06% |
0.06% |
0.06% |
0.02% |
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.90% |
1.15% |
1.40% |
0.85% |
| 1 |
Other
expenses include an administrative services fee of 0.25% for Admin Class
shares. |
| 2 |
Loomis,
Sayles & Company, L.P. (“Loomis Sayles” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating
expenses to 0.90%, 1.15%, 1.40% and 0.85% of the Fund’s average daily net
assets for Institutional Class shares, Retail Class shares, Admin Class
shares and Class N shares,
respectively, exclusive of brokerage expenses, interest expense, taxes,
acquired fund fees and expenses, organizational and extraordinary
expenses, such as litigation and indemnification
expenses. This undertaking is in effect through January 31,
2025
and may be terminated before then only with the consent of the Fund’s
Board of Trustees. The Adviser
will be permitted to recover, on a class-by-class basis, management fees
waived and/or expenses reimbursed to the extent that expenses in later
periods fall below both
(1) the class’
applicable expense limitation at the time such amounts were
waived/reimbursed and (2) the class’ current applicable expense
limitation.
The Fund will not be obligated to repay any
such waived/reimbursed fees and expenses more than one year after the end
of the fiscal year in which the fees or expenses were
waived/reimbursed. |
Example
The
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the Fund for the time periods indicated and
then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year and that
the Fund’s operating expenses remain the same, except
that the examples are
based on the Total Annual Fund Operating Expenses After Fee Waiver and/or
Expense Reimbursement assuming
that such waiver and/or reimbursement will only be in place through the date
noted above and on the Total Annual Fund Operating
Expenses for the remaining periods. The example does not take into account
brokerage commissions and other fees to financial intermediaries
that you may pay on your purchases and sales of shares of the Fund. Although
your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
| |
|
|
1
year |
3
years |
5
years |
10
years |
|
Institutional
Class |
$ |
|
$ |
|
$ |
|
$ |
|
|
Retail
Class |
$ |
|
$ |
|
$ |
|
$ |
|
|
Admin
Class |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes for
you if your Fund shares are held in a taxable account. These
costs, which are not reflected in annual fund operating expenses or in the
example, affect the Fund’s performance. During its most recently
ended fiscal year, the Fund’s portfolio turnover rate was
26%
of the average value of its portfolio.
INVESTMENTS,
RISKS AND PERFORMANCE
Principal
Investment Strategies
The
Fund normally will invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in the equity securities of “small-cap
companies,” including preferred stocks, warrants, securities convertible into
common or preferred stocks and other equity-like interests
in an entity. Currently, the Fund defines a small-cap company to be one whose
market capitalization falls 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 companies of any size, including large-capitalization companies.
In
deciding which securities to buy and sell, Loomis Sayles seeks to identify
securities of smaller companies that it believes are undervalued by
the market
using a disciplined bottom-up approach to investing. Utilizing fundamental
research, Loomis Sayles seeks to identify those stocks
selling at a discount to its assessment of intrinsic value.
The Fund’s investments focus
on market inefficiencies and may
include companies
that are
misunderstood by other investors; are undergoing a change in the business model
or financial structure; or those
companies
that are not yet well-known to the investment community but are considered to
have favorable fundamental prospects and attractive
valuation. The portfolio managers analyze fundamental trends across the various
industries in the sectors and use this information along
with security valuation procedures to determine which stocks they believe are
best positioned to outperform the industry or sector. Sell decisions
are made when there is a deterioration in fundamentals, a stock reaches a target
price or a more attractive opportunity is found.
The
Fund may invest up to 20% of its assets in foreign securities, including
emerging markets securities. Although certain equity securities purchased
by the Fund may be issued by domestic companies incorporated outside of the
United States, the Adviser does not consider these securities
to be foreign if they are included in the U.S. equity indices published by
S&P Global Ratings or Russell Investments. The Fund may
also invest in real estate investment trusts (“REITs”), securities issued
pursuant to Rule 144A under the Securities Act of 1933 (“Rule 144A
securities”)
and other privately placed investments such as private equity investments
and,
to the extent permitted by the Investment Company
Act of 1940, and the rules thereunder (the “1940 Act”), investment companies.
The Fund may engage, for hedging and investment
purposes, in foreign currency transactions (such as forward currency contracts),
options and futures transactions.
Principal
Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You may lose
money by investing in the Fund.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government
agency, and are subject to investment risks, including possible loss of the
principal invested.
The
significance
of any specific risk to an investment in the Fund will vary over time, depending
on the composition of the Fund’s portfolio, market
conditions, and other factors. You should read all of the risk information
presented below carefully, because any one or more of these risks
may result in losses to the Fund.
Equity
Securities Risk
is the risk that the value of a
stock may decline for a number of reasons that relate directly to the issuer,
such as management
performance, financial leverage and reduced demand for the issuer’s goods and
services, or the equity markets generally. Value
stocks
can perform differently from the market as a whole and from other types of
stocks. Value stocks also present the risk that their lower valuations
fairly reflect their business prospects and that investors will not agree that
the stocks represent favorable investment opportunities, and
they may fall out of favor with investors and underperform growth stocks during
any given period.
In
the event an issuer is liquidated or declares
bankruptcy, the claims of owners of the issuer’s bonds generally take precedence
over the claims of those who own preferred stock or
common stock.
Small-Capitalization
Companies Risk
is the risk that the Fund’s investments may be subject to more abrupt price
movements, limited markets,
increased volatility and less liquidity than investments in larger, more
established companies, which could adversely affect the value of
the portfolio.
Market/Issuer
Risk
is the risk that the market value of the Fund’s investments will move up and
down, sometimes rapidly and unpredictably,
based upon overall market and economic conditions, as well as a number of
reasons that directly relate to the issuers of the Fund’s
investments, such as management performance, financial condition and demand for
the issuers’ goods and services.
REITs
Risk
is the risk that the value of the Fund’s investments in REITs will fall as a
result of changes in underlying real estate values, rising interest
rates, limited diversification of holdings, higher costs and prepayment risk
associated with related mortgages, as well as other risks particular
to investments in real estate. Many REITs are highly leveraged, increasing their
risk. The
Fund will indirectly bear its proportionate
share of expenses, including management fees, paid by each REIT in which it
invests in addition to the expenses of the Fund.
Liquidity
Risk
is the risk that the Fund may be unable to find a buyer for its investments when
it seeks to sell them or to receive the price it expects.
Events that may lead to increased redemptions, such as market disruptions or
increases in interest rates, may also negatively impact the
liquidity of the Fund’s investments when it needs to dispose of them.
Markets
may become illiquid quickly. If
the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect
the Fund. During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a
private placement, such as Rule 144A securities
and privately negotiated equity and other investments,
are generally subject to significant liquidity
risk because they are subject to strict restrictions on resale and there may be
no liquid secondary market or ready purchaser for such securities.
In
other circumstances, liquid investments may become illiquid. Liquidity
issues may also make it difficult to value the Fund’s investments.
The Fund may invest in liquid investments that become illiquid due to financial
distress, or geopolitical events such as sanctions,
trading halts or wars.
Credit/Counterparty
Risk
is the risk that the issuer or guarantor of a fixed-income security in which the
Fund invests, or the counterparty to
a derivative or other transaction, will be unable or unwilling to make timely
payments of interest or principal or to otherwise honor its obligations.
As a result, the Fund may sustain losses or be unable or delayed in its ability
to realize gains.
Currency
Risk
is the risk that the value of the Fund’s investments will fall as a result of
changes in exchange rates. Loomis
Sayles may elect not
to hedge currency risk or may hedge imperfectly, which may cause the Fund to
incur losses that would not have been incurred had the risk
been hedged.
Cybersecurity
and Technology Risk
is the risk associated with the increasing dependence of the Fund, its service
providers, and other market
participants on complex information technology and communications systems. Such
systems are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result
in financial losses to the Fund and its shareholders.
Derivatives
Risk
is the risk that the value of the Fund’s derivative investments such as forward
currency contracts, options and futures transactions
will fall, for example, because of changes in the value of the underlying
reference instruments, pricing difficulties or lack of correlation
with the underlying investments. The use of derivatives for other than hedging
purposes may be considered a speculative activity, and
involves greater risks than are involved in hedging. There is also the risk that
the Fund may be unable to terminate or sell a derivative position
at an advantageous time or price. The Fund’s derivative counterparties may
experience financial difficulties or otherwise be unwilling
or unable to honor their obligations, possibly resulting in losses to the Fund.
This risk is greater for forward currency contracts and
other over-the-counter (“OTC”) traded derivatives. Investing in derivatives
gives rise to other risks, such as leverage risk, liquidity risk, credit/counterparty
risk, interest rate risk and market/issuer risk. The use of derivatives may
cause the Fund to incur losses greater than those which
would have occurred had derivatives not been used.
Emerging
Markets Risk
is the risk that the Fund’s investments in emerging markets may face greater
foreign securities risk. Emerging markets
investments are subject to greater risks arising from political or economic
instability, war,
nationalization
or confiscatory taxation, currency
exchange or
repatriation restrictions, sanctions by other countries (such as the United
States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments,
and
an issuer’s unwillingness or inability to make dividend,
principal
or interest payments on its securities.
Emerging markets companies may be smaller and have shorter operating histories
than companies
in developed markets.
Foreign
Securities Risk
is the risk that the value of the Fund’s foreign investments will fall as a
result of foreign political, social, economic, environmental,
credit, informational or currency changes or other issues relating to foreign
investing generally. Foreign securities may be subject
to higher volatility than U.S. securities, varying degrees of regulation and
limited liquidity. The Fund’s investments in foreign securities
may be subject to foreign withholding or other taxes, which would decrease the
yield on those securities.
Investments
in Other Investment Companies Risk
is the risk that the Fund will indirectly bear the management service and other
fees of the
other investment company in addition to its own expenses.
Leverage
Risk
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small
index, market or asset price movements into larger changes in value. Use of
derivative instruments (such as futures and forward currency
contracts) may involve leverage. When a derivative is used as a hedge against an
offsetting position that the Fund also holds, any gains
generated by the derivative should be substantially offset by losses on the
hedged instrument, and vice versa. To the extent that the Fund
uses a derivative for purposes other than as a hedge, or if the Fund hedges
imperfectly, the Fund is directly exposed to the risks of that derivative
and any loss generated by the derivative will not be offset by a gain. The use
of leverage increases the impact of gains and losses on the
Fund’s returns, and may lead to significant losses if investments are not
successful.
Management
Risk
is the risk that Loomis Sayles’ investment techniques will be unsuccessful and
cause the Fund to incur losses.
Risk/Return
Bar Chart and Table
The
following bar chart and table give an indication of the risks of investing in
the Fund by showing changes in the Fund’s performance from
year to year and by showing how the Fund’s average annual returns for the
one-year, five-year
and ten-year periods
compare to those of a
broad-based securities market index that reflects
the performance of the
overall market applicable to the Fund and additional indices that represent
the market sectors in which the Fund primarily invests.
The Fund’s past performance (before and after taxes) does not necessarily
indicate
how the Fund will perform in the future. Updated performance information is
available online at www.loomissayles.com and/or by calling
the Fund toll-free at 800-633-3330.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been
waived or reimbursed during the period, total returns would have been
lower.
Total
Returns for Institutional Class Shares
|
| |
|
|
Highest
Quarterly Return:
Fourth
Quarter 2020, 27.47%
Lowest
Quarterly Return:
First
Quarter 2020, -33.76% |
|
|
|
| |
|
Average
Annual Total Returns |
|
|
|
|
(for
the periods ended December 31, 2023) |
Past
1 Year |
Past
5 Years |
Past
10 Years |
|
Institutional
Class - Return Before Taxes |
19.45% |
11.75% |
7.50% |
|
Return
After Taxes on Distributions |
14.68% |
8.56% |
4.51% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
14.96% |
9.08% |
5.45% |
|
Retail
Class - Return Before Taxes |
19.10% |
11.47% |
7.23% |
|
Admin
Class - Return Before Taxes |
18.81% |
11.18% |
6.96% |
|
Class
N - Return Before Taxes |
19.46% |
11.80% |
7.56% |
|
Russell
3000® Index1
|
25.96% |
15.16% |
11.48% |
|
Russell
2000® Value Index |
14.65% |
10.00% |
6.76% |
|
Russell
2000® Index |
16.93% |
9.97% |
7.16% |
| 1 |
Effective
February 1, 2024, the Fund’s primary broad-based performance index changed
to the Russell 3000® Index. The Russell 3000® Index is a broad-based
securities market index
that represents the overall market applicable to the Fund. The Fund will
retain the Russell 2000® VaIue Index and the Russell 2000® Index as its
additional benchmarks for performance
comparison. |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and
local taxes. Actual after-tax returns depend on an investor’s tax situation and
may differ from those shown. After-tax returns shown are not
relevant to investors who hold their shares through tax-advantaged arrangements,
such as 401(k) plans, qualified plans, education savings
accounts, such as 529 plans, or individual retirement accounts. The after-tax
returns are shown for the Institutional Class of the Fund.
After-tax returns for the other classes of the Fund will vary. Index performance
reflects no deduction for fees, expenses or taxes.
MANAGEMENT
Investment
Adviser
Loomis
Sayles
Portfolio
Managers
Joseph
R. Gatz, CFA®,
Portfolio
Manager at
Loomis Sayles, has served as a portfolio manager of the Fund since
2000.
Jeffrey
Schwartz, CFA®,
Portfolio
Manager at
Loomis Sayles, has served as a portfolio manager of the Fund since
2012.
PURCHASE
AND SALE OF FUND SHARES
The
following chart
shows the investment minimums
for various types of accounts:
Retail
Class Shares
|
| |
|
Type
of Account |
Minimum
Initial Purchase |
|
Any
account other than those listed below |
$2,500 |
|
For
shareholders participating in Loomis Sayles Funds’ Automatic Investment
Plan |
$1,000 |
|
For
Traditional IRA, Roth IRA, Rollover IRA and SEP-IRA |
$1,000 |
There
is no initial investment minimum for:
|
• |
Fee-based
programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult
your financial representative to determine if your fee based program is
subject to additional or different conditions or
fees. |
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Clients
of a Registered
Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
The
minimum investment requirements for Retail Class shares of the Fund may be
waived or lowered for investments effected through certain
financial intermediaries that have entered into special arrangements with
Natixis Distribution, LLC
(the “Distributor”). Consult your
financial intermediary for additional information regarding the minimum
investment requirement applicable to your investment.
Institutional
Class Shares
Institutional
Class shares of the Fund are generally subject to a minimum initial investment
of $100,000 except
there is no minimum initial investment
for:
|
• |
Fee-based
programs
(such as wrap accounts) where an advisory fee is paid to the broker-dealer
or other financial intermediary. Please consult
your financial representative to determine if your fee based program is
subject to additional or different conditions or
fees. |
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Certain
Individual Retirement Accounts
if the amounts invested represent rollover distributions from investments
by any of the retirement
plans invested in the Fund. |
|
• |
Clients
of a Registered
Investment Adviser
where the Registered Investment Adviser receives an advisory, management
or consulting fee. |
|
• |
Fund
Trustees,
former Fund trustees, employees of affiliates of the Loomis Sayles Funds
and other individuals who are affiliated with any Loomis
Sayles Fund (this also applies to any spouse, parents, children, siblings,
grandparents, grandchildren and in-laws of those mentioned)
and Natixis affiliate employee benefit
plans. |
At
the discretion of Natixis Advisors,
LLC (“Natixis Advisors”),
clients of Natixis Advisors,
and its affiliates may purchase Institutional Class shares
of the Fund below the stated minimums.
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts
(such as wrap accounts) where an advisory fee is paid to the broker-dealer or
other financial intermediary.
There is no subsequent investment
minimum for these shares. There is no initial investment minimum
for:
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
|
• |
Funds
of funds
that are distributed by the Distributor. |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes
will have enough assets to exceed the investment minimum requirement within a
relatively short period of time following the establishment
date of such accounts in Class N. The
Distributor and the Fund, at any time, reserve the right to liquidate these
accounts or any
other account that does not meet the eligibility requirements of this
class.
Admin
Class Shares
Admin
Class shares of the Fund are intended primarily for Certain Retirement Plans
held in an omnibus fashion and are not available for purchase
by individual investors. There are no initial or subsequent investment minimums
for these shares.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and
accounts of registered investment advisers may be subject to the investment
minimums described above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your financial adviser, through your broker-dealer,
directly from the Fund by writing to the Fund at Loomis Sayles Funds, P.O. Box
219594, Kansas City, MO 64121-9594, by exchange,
by wire, by internet at www.loomissayles.com, by telephone at 800-633-3330,
through the Automated Clearing House system, or,
in the case of redemptions, by the Systematic Withdrawal Plan. See the section
“How Fund Shares are Priced” in the Prospectus for details.
TAX
INFORMATION
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors
that qualify for tax-advantaged treatment under U.S. federal income tax law
generally. Investments in such tax-advantaged plans will
generally be taxed only upon withdrawal of monies from the tax-advantaged
arrangement.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies
may pay the intermediary for the sale of the Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to recommend the
Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more
information.
Loomis
Sayles Small/Mid Cap Growth Fund
INVESTMENT
OBJECTIVE
The
Fund’s investment objective is long-term capital growth from investments in
common stocks or other equity securities.
FUND
FEES & EXPENSES
The
following table describes the fees and expenses that you may pay if you buy,
hold, and sell shares of the Fund. You may pay other fees, such
as brokerage commissions and other fees to financial intermediaries, which are
not reflected in this table.
The
Fund does not impose a sales charge, a redemption fee or an exchange
fee.
Annual
Fund Operating Expenses
|
|
| |
|
(expenses
that you pay each year as a percentage of the value of your
investment) |
Institutional
Class |
Class
N |
|
Management
fees |
0.75% |
0.75% |
|
Distribution
and/or service (12b-1) fees |
0.00% |
0.00% |
|
Other
expenses |
0.18% |
0.17% |
|
Total
annual fund operating expenses |
0.93% |
0.92% |
|
Fee
waiver and/or expense reimbursement1
|
% |
%2 |
|
Total
annual fund operating expenses after fee waiver and/or expense
reimbursement |
0.85% |
0.83% |
| 1 |
Loomis,
Sayles & Company, L.P. (“Loomis Sayles” or the “Adviser”) has given a
binding contractual undertaking to the Fund to limit the amount of the
Fund’s total annual fund operating
expenses to 0.85% and 0.83% of the Fund’s average daily net assets for
Institutional Class shares and Class N shares, respectively, exclusive of
brokerage expenses, interest expense,
taxes, acquired fund fees and expenses, organizational and extraordinary
expenses, such as litigation and indemnification expenses. This
undertaking is in effect through January
31, 2025
and may be terminated before then only with the consent of the Fund’s
Board of Trustees. The Adviser will be permitted to recover, on a
class-by-class basis, management
fees waived and/or expenses reimbursed to the extent that expenses in
later periods fall below both
(1) the class’ applicable expense limitation at the time such amounts
were
waived/reimbursed and (2) the class’ current applicable expense
limitation.
The Fund will not be obligated to repay any such waived/reimbursed fees
and expenses more than one
year after the end of the fiscal year in which the fees or expenses were
waived/reimbursed. |
| 2 |
Natixis
Advisors, LLC (“Natixis Advisors”) has given a binding contractual
undertaking to the Fund to reimburse any and all transfer agency expenses
for Class N shares. This undertaking
is in effect through January 31, 2025 and may be terminated before then
only with the consent of the Fund’s Board of
Trustees. |
Example
The
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example
assumes that you invest $10,000 in the Fund for the time periods indicated and
then redeem all of your shares at the end of those periods.
The example also assumes that your investment has a 5% return each year and that
the Fund’s operating expenses remain the same, except
that the example is based on the Total Annual Fund Operating Expenses After Fee
Waiver and/or Expense Reimbursement assuming that
such waiver and/or reimbursement will only be in place through the date noted
above and on the Total Annual Fund Operating Expenses
for the remaining periods. The example does not take into account brokerage
commissions and other fees to financial intermediaries
that you may pay on your purchases and sales of shares of the Fund. Although
your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
| |
|
|
1
year |
3
years |
5
years |
10
years |
|
Institutional
Class |
$ |
|
$ |
|
$ |
|
$ |
|
|
Class
N |
$ |
|
$ |
|
$ |
|
$ |
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover
rate may indicate higher transaction costs and may result in higher taxes for
you if your Fund shares are held in a taxable account. These
costs, which are not reflected in annual fund operating expenses or in the
example, affect the Fund’s performance. During its most recently
ended fiscal year, the Fund’s portfolio turnover rate was
63%
of the average value of its portfolio.
INVESTMENTS,
RISKS AND PERFORMANCE
Principal
Investment Strategies
The
Fund normally will invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in the equity securities of “small/mid-cap
companies,” including preferred stocks, warrants and securities convertible into
common or preferred stocks. Currently, the Fund
defines a small/mid-cap company to be one whose market capitalization
falls
within the capitalization range of the Russell 2500™ Index,
an index that tracks some or all of the stocks of the 2,500 of the smallest U.S.
companies.
The Fund may invest the rest of its assets in companies
of any size, including large-capitalization
companies.
In
deciding which securities to buy and sell, Loomis Sayles typically seeks to
identify companies that it 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 and sell
decisions.
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. Although certain equity securities purchased by the
Fund may be issued by domestic companies incorporated
outside of the United States, the Adviser does not consider these securities to
be foreign if they are included in the U.S. equity indices
published by S&P Global Ratings or Russell Investments. The Fund may also
invest in securities issued pursuant to Rule 144A under
the Securities Act of 1933 (“Rule 144A securities”)
and other privately placed investments such as private equity
investments.
The
Fund may engage, for hedging and investment purposes, in foreign currency
transactions (such as forward currency contracts), options and
futures transactions.
Principal
Risks
The
principal risks of investing in the Fund are summarized below. The Fund does not
represent a complete investment program. You
may lose
money by investing in the Fund.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government
agency, and are subject to investment risks, including possible loss of the
principal invested.
The
significance
of any specific risk to an investment in the Fund will vary over time, depending
on the composition of the Fund’s portfolio, market
conditions, and other factors. You should read all of the risk information
presented below carefully, because any one or more of these risks
may result in losses to the Fund.
Equity
Securities Risk
is the risk that the value of a
stock may decline for a number of reasons that relate directly to the issuer,
such as management
performance, financial leverage and reduced demand for the issuer’s goods and
services, or the equity markets generally. Growth
stocks are generally more sensitive to market movements than other types of
stocks primarily because their stock prices are based heavily
on future expectations. If the Adviser’s assessment of the prospects for a
company’s growth is wrong, or if the Adviser’s judgment of how
other investors will value the company’s growth is wrong, then the price of the
company’s stock may fall or not approach the value that the
Adviser has placed on it.
In
the event an issuer is liquidated or declares bankruptcy, the claims of owners
of the issuer’s bonds generally take
precedence over the claims of those who own preferred stock or common
stock.
Small/Mid-Capitalization
Companies Risk
is the risk that the Fund’s investments may be subject to more abrupt price
movements, limited
markets, increased volatility and less liquidity than investments in larger,
more established companies, which could adversely affect the
value of the portfolio.
Market/Issuer
Risk
is the risk that the market value of the Fund’s investments will move up and
down, sometimes rapidly and unpredictably,
based upon overall market and economic conditions, as well as a number of
reasons that directly relate to the issuers of the Fund’s
investments, such as management performance, financial condition and demand for
the issuers’ goods and services.
Management
Risk
is the risk that Loomis Sayles’ investment techniques will be unsuccessful and
cause the Fund to incur losses.
Credit/Counterparty
Risk
is the risk that the issuer or guarantor of a fixed-income security in which the
Fund invests, or the counterparty to
a derivative or other transaction, will be unable or unwilling to make timely
payments of interest or principal or to otherwise honor its obligations.
As a result, the Fund may sustain losses or be unable or delayed in its ability
to realize gains.
Currency
Risk
is the risk that the value of the Fund’s investments will fall as a result of
changes in exchange rates. Loomis
Sayles may elect not
to hedge currency risk or may hedge imperfectly, which may cause the Fund to
incur losses that would not have been incurred had the risk
been hedged.
Cybersecurity
and Technology Risk
is the risk associated with the increasing dependence of the Fund, its service
providers, and other
market
participants on complex information technology and communications systems. Such
systems are subject to a number of different threats
and risks that could adversely affect the Fund and its shareholders.
Cybersecurity and other operational and technology issues may result
in financial losses to the Fund and its
shareholders.
Derivatives
Risk
is the risk that the value of the Fund’s derivative investments such as forward
currency contracts, options and futures transactions
will fall, for example, because of changes in the value of the underlying
reference instruments, pricing difficulties or lack of correlation
with the underlying investments. The use of derivatives for other than hedging
purposes may be considered a speculative activity, and
involves greater risks than are involved in hedging. There is also the risk that
the Fund may be unable to terminate or sell a derivative position
at an advantageous time or price. The Fund’s derivative counterparties may
experience financial difficulties or otherwise be unwilling
or unable to honor their obligations, possibly resulting in losses to the Fund.
This risk is greater for forward currency contracts and
other over-the-counter (“OTC”) traded derivatives. Investing in derivatives
gives rise to other risks, such as leverage risk, liquidity risk, credit/counterparty
risk, interest rate risk and market/issuer risk. The use of derivatives may
cause the Fund to incur losses greater than those which
would have occurred had derivatives not been
used.
Emerging
Markets Risk
is the risk that the Fund’s investments in emerging markets may face greater
foreign securities risk. Emerging markets
investments are subject to greater risks arising from political or economic
instability, war,
nationalization
or confiscatory taxation, currency
exchange or
repatriation restrictions, sanctions by other countries (such as the United
States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and instruments,
and
an issuer’s unwillingness or inability to make dividend,
principal
or interest payments on its securities.
Emerging markets companies may be smaller and have shorter operating histories
than companies
in developed markets.
Foreign
Securities Risk
is the risk that the value of the Fund’s foreign investments will fall as a
result of foreign political, social, economic, environmental,
credit, informational or currency changes or other issues relating to foreign
investing generally. Foreign securities may be subject
to higher volatility than U.S. securities, varying degrees of regulation and
limited liquidity. The Fund’s investments in foreign securities
may be subject to foreign withholding or other taxes, which would decrease the
yield on those securities.
Large
Investor Risk
is the risk associated with ownership of shares of the Fund that may be
concentrated in one or a few large investors. Such
investors may redeem shares in large quantities or on a frequent basis.
Redemptions by a large investor can affect the performance of the
Fund, may increase realized capital gains, including short-term capital gains
taxable as ordinary income, may accelerate the realization of taxable
income to shareholders and may increase transaction costs. These transactions
potentially limit the use of any capital loss carryforwards
and certain other losses to offset future realized capital gains (if any). Such
transactions may also increase the Fund’s
expenses.
Leverage
Risk
is the risk associated with securities or investment practices (e.g., borrowing
and the use of certain derivatives) that multiply small
index, market or asset price movements into larger changes in value. Use of
derivative instruments (such as futures and forward currency
contracts) may involve leverage. When a derivative is used as a hedge against an
offsetting position that the Fund also holds, any gains
generated by the derivative should be substantially offset by losses on the
hedged instrument, and vice versa. To the extent that the Fund
uses a derivative for purposes other than as a hedge, or if the Fund hedges
imperfectly, the Fund is directly exposed to the risks of that derivative
and any loss generated by the derivative will not be offset by a gain. The use
of leverage increases the impact of gains and losses on the
Fund’s returns, and may lead to significant losses if investments are not
successful.
Liquidity
Risk
is the risk that the Fund may be unable to find a buyer for its investments when
it seeks to sell them or to receive the price it expects.
Events that may lead to increased redemptions, such as market disruptions or
increases in interest rates, may also negatively impact the
liquidity of the Fund’s investments when it needs to dispose of them.
Markets
may become illiquid quickly. If
the Fund is forced to sell its
investments at an unfavorable time and/or under adverse conditions in order to
meet redemption requests, such sales could negatively affect
the Fund. During
times of market turmoil, there may be no buyers or sellers for securities in
certain asset classes. Securities
acquired in a
private placement, such as Rule 144A securities
and privately negotiated equity and other investments,
are generally subject to significant liquidity
risk because they are subject to strict restrictions on resale and there may be
no liquid secondary market or ready purchaser for such securities.
In
other circumstances, liquid investments may become illiquid. Liquidity
issues may also make it difficult to value the Fund’s investments.
The Fund may invest in liquid investments that become illiquid due to financial
distress, or geopolitical events such as sanctions,
trading halts or wars.
Risk/Return
Bar Chart and Table
The
following bar chart and table give an indication of the risks of investing in
the Fund by showing changes in the Fund’s performance from
year to year and by showing how the Fund’s average annual returns for the
one-year, five-year and life-of-class periods (as applicable) compare to those
of a broad-based
securities market index that reflects the performance of the overall market
applicable to the Fund and an additional index that represents the market
sectors in which the Fund primarily
invests.
The Fund’s past performance (before and after taxes) does not necessarily
indicate how the Fund will perform in the future.
Updated performance information is available online at www.loomissayles.com
and/or by calling the Fund toll-free at 800-633-3330.
To
the extent that a class of shares was subject to the waiver or reimbursement of
certain expenses during a period, had such expenses not been
waived or reimbursed during the period, total returns would have been
lower.
Total
Returns for Institutional Class Shares
|
| |
|
|
Highest
Quarterly Return:
Second
Quarter 2020,
28.50%
Lowest
Quarterly Return:
First
Quarter 2020,
-21.89% |
|
|
|
|
| |
|
Average
Annual Total Returns |
|
|
|
|
|
(for
the periods ended December 31, 2023) |
Past
1 Year |
Past
5 Years |
Life
of Institutional Class
(6/30/15) |
Life
of Class N
(10/1/19) |
|
Institutional
Class - Return Before Taxes |
6.71% |
9.71% |
8.28% |
- |
|
Return
After Taxes on Distributions |
6.71% |
9.08% |
6.87% |
- |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
3.97% |
7.79% |
6.41% |
- |
|
Class
N - Return Before Taxes |
6.70% |
- |
- |
6.94% |
|
Russell
3000® Index1
|
% |
% |
% |
% |
|
Russell
2500™ Growth Index |
18.93% |
11.43% |
8.49% |
9.21% |
| 1 |
Effective
February 1, 2024, the Fund’s primary broad-based performance index changed
to the Russell 3000® Index. The Russell 3000® Index is a broad-based
securities market index
that represents the overall market applicable to the Fund. The Fund will
retain the Russell 2500™ Growth Index as its additional benchmark for
performance comparison. |
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and
local taxes. Actual
after-tax returns depend on an investor’s tax situation and may differ from
those shown. After-tax returns shown are not
relevant to investors who hold their shares through tax-advantaged arrangements,
such as 401(k) plans, qualified plans, education savings
accounts, such as 529 plans, or individual retirement accounts.
The
after-tax returns are shown for the Institutional Class of the Fund.
After-tax returns for Class N will vary. Index
performance reflects no deduction for fees, expenses or
taxes.
MANAGEMENT
Investment
Adviser
Loomis
Sayles
Portfolio
Managers
Mark
F. Burns, CFA®,
Co-Portfolio
Manager at
Loomis Sayles, has served as a portfolio manager of the Fund since
2015.
John
J. Slavik, CFA®,
Co-Portfolio
Manager at
Loomis Sayles, has served as a portfolio manager of the Fund since
2015.
PURCHASE
AND SALE OF FUND SHARES
The
following chart
shows the investment minimums
for various types of accounts:
Institutional
Class Shares
Institutional
Class shares of the Fund are generally subject to a minimum initial investment
of $100,000 except
there is no minimum initial investment
for:
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Fund
Trustees,
former Fund trustees, employees of affiliates of the Loomis Sayles Funds
and other individuals who are affiliated with any Loomis
Sayles Fund (this also applies to any spouse, parents, children, siblings,
grandparents, grandchildren and in-laws of those mentioned)
and Natixis affiliate employee benefit
plans. |
Registered
Investment Advisers
investing on behalf of their clients and certain fee based programs may
aggregate investments of multiple clients
to satisfy the $100,000 minimum initial investment amount.
At
the discretion of Natixis Advisors, clients
of Natixis Advisors, and
its affiliates may purchase Institutional Class shares of the Fund below
the
stated minimums.
Class
N Shares
Class
N shares of the Fund are subject to a $1,000,000 initial investment minimum.
This minimum applies to Fee Based Programs and accounts
(such as wrap accounts) where an advisory fee is paid to the broker-dealer or
other financial intermediary.
There is no subsequent investment
minimum for these shares. There is no initial investment minimum
for:
|
• |
Certain
Retirement Plans.
Please consult your retirement plan administrator to determine if your
retirement plan is subject to additional or
different conditions or fees imposed by the plan
administrator. |
|
• |
Sub-accounts
held within an omnibus account, where the omnibus account has at least
$1,000,000. |
|
• |
Funds
of funds
that are distributed by the Distributor. |
In
its sole discretion, the Distributor may waive the investment minimum
requirement for accounts as to which the Distributor reasonably believes
will have enough assets to exceed the investment minimum requirement within a
relatively short period of time following the establishment
date of such accounts in Class N. The
Distributor and the Fund, at any time, reserve the right to liquidate these
accounts or any
other account that does not meet the eligibility requirements of this
class.
Due
to operational limitations at your financial intermediary, certain fee based
programs, retirement plans, individual retirement accounts and
accounts of registered investment advisers may be subject to the investment
minimums described above.
The
Fund’s shares are available for purchase and are redeemable on any business day
through your financial adviser, through your broker-dealer,
directly from the Fund by writing to the Fund at Loomis Sayles Funds, P.O. Box
219594, Kansas City, MO 64121-9594, by exchange,
by wire, by internet at www.loomissayles.com, by telephone at 800-633-3330,
through the Automated Clearing House system, or,
in the case of redemptions, by the Systematic Withdrawal Plan. See the section
“How Fund Shares are Priced” in the Prospectus for details.
TAX
INFORMATION
Fund
distributions are generally taxable to you as ordinary income or capital gains,
except for distributions to retirement plans and other investors
that qualify for tax-advantaged treatment under U.S. federal income tax law
generally. Investments in such tax-advantaged plans will
generally be taxed only upon withdrawal of monies from the tax-advantaged
arrangement.
PAYMENTS
TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the Fund and its related companies
may pay the intermediary for the sale of the Fund shares and related services.
These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to recommend the
Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more
information.
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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. The Fund’s
investment objective may be changed without shareholder approval. The Fund will
provide prior written notice to shareholders before
changing the investment objective.
Principal
Investment Strategies
Under
normal circumstances, the Fund will invest at least 80% of its net assets (plus
any borrowings made for investment purposes) in fixed-income
securities. The Fund may invest up to 35% of its assets in below
investment-grade fixed-income securities (commonly known as
“junk bonds”) and up to 20% of its assets in equity securities, such as common
stocks and preferred stocks. Below investment-grade fixed-income
securities are rated below investment-grade quality (i.e., none of the three
major ratings agencies (Moody’s Investors Service, Inc., Fitch
Investor Services, Inc. or S&P Global Ratings) have rated the securities in
one of their respective top four ratings categories). The Fund’s
fixed-income securities investments may include unrated securities (securities
that are not rated by a rating agency) if Loomis Sayles determines
that the securities are of comparable quality to rated securities that the Fund
may purchase. The Fund may invest in fixed-income
securities of any maturity.
In
deciding which securities to buy and sell, Loomis Sayles may consider a number
of factors related to the bond issue and the current bond market,
including, for example, the stability and volatility of a country’s bond
markets, the financial strength of the issuer, current interest rates,
current valuations, Loomis Sayles’ expectations regarding general trends in
interest rates and currency considerations. Loomis Sayles will
also consider how purchasing or selling a bond would impact the overall
portfolio’s risk profile (for example, its sensitivity to currency risk,
interest rate risk and sector-specific risk) and potential return (income and
capital gains).
Three
themes typically drive the Fund’s investment approach. First, Loomis Sayles
generally seeks fixed-income securities that are attractively
valued relative to the Loomis Sayles’ credit research team’s assessment of
credit risk. The broad coverage combined with the objective
of identifying attractive investment opportunities makes this an important
component of the investment approach. Second, the Fund
may invest significantly in securities the prices of which Loomis Sayles
believes are more sensitive to events related to the underlying issuer
than to changes in general interest rates or overall market default rates. These
securities may not have a direct correlation with changes in
interest rates, thus helping to manage interest rate risk and to offer
diversified sources for return. Third, Loomis Sayles analyzes different
sectors
of the economy and differences in the yields (“spreads”) of various fixed-income
securities (U.S. government securities, investment-grade
corporate securities, securitized assets, high-yield corporate securities,
emerging market securities, non-U.S. sovereigns and credits, convertibles,
bank loans and municipals) in an effort to find securities that it believes may
produce attractive returns for the Fund in comparison
to their risk.
In
deciding which equity securities to buy and sell, Loomis Sayles intends to
emphasize dividend-paying stocks issued by companies with strong
fundamentals and relatively limited anticipated volatility to supplement its
fixed-income holdings. These securities will be selected with
the same bottom-up investment process that is the foundation of the Fund’s
overall strategy.
The
Fund may invest up
to 20% of its assets in foreign
securities, including emerging market securities. The Fund may invest without
limit in
obligations of supranational entities (e.g., the World Bank). Although certain
securities purchased by the Fund may be issued by domestic companies
incorporated outside of the United States, the Adviser does not consider these
securities to be foreign if the issuer is included in the
U.S. fixed-income indices published by Bloomberg.
The
fixed-income securities in which the Fund may invest include, among other
instruments, corporate bonds and other debt securities (including
junior and senior bonds), U.S. government securities, commercial paper,
collateralized loan obligations, zero-coupon securities, mortgage-backed
securities, stripped mortgage-backed securities, collateralized mortgage
obligations and other asset-backed securities, including
mortgage dollar rolls, when-issued securities, real estate investment trusts
(“REITs”), securities issued pursuant to Rule 144A under
the Securities Act of 1933 (“Rule 144A securities”), other
privately placed investments such as private credit investments, repurchase
agreements
and convertible securities. The Fund may also engage in options and futures
transactions, foreign currency transactions (such as forward
currency contracts) and swap transactions (including credit default swaps, in
which one party agrees to make periodic payments to a counterparty
in exchange for the right to receive a payment in the event of a default of the
underlying reference security).
In
accordance with applicable Securities
and Exchange Commission (“SEC”)
requirements, the Fund will notify shareholders prior to any change
to the 80% policy discussed above taking effect.
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Loomis
Sayles Global Bond Fund
Investment
Objective
The
Fund’s investment objective is high total investment return through a
combination of high current income and capital appreciation. The
Fund’s investment objective may be changed without shareholder approval. The
Fund will provide prior written notice to shareholders before
changing the investment objective.
Principal
Investment Strategies
The
Fund will normally invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in fixed-income securities (for
example, bonds and other investments that Loomis Sayles believes have similar
economic characteristics, such as notes, debentures and loans).
The Fund invests primarily in investment-grade fixed-income securities
worldwide, although it may invest up to 20% of its assets in below
investment-grade fixed-income securities (commonly known as “junk bonds”). Below
investment-grade fixed-income securities are rated
below investment-grade quality (i.e., none of the three major rating agencies
(Moody’s Investors Service, Inc., Fitch Investor Services, Inc.
or S&P Global Ratings) have rated the securities in one of their respective
top four rating categories). The Fund’s fixed-income securities
investments may include unrated securities (securities that are not rated by a
rating agency) if Loomis Sayles determines that the securities
are of comparable quality to rated securities that the Fund may purchase.
Securities held by the Fund may be denominated in any currency
and may be issued by issuers located in countries with emerging securities
markets. The Fund may invest in fixed-income securities of
any maturity. The Fund may also invest in foreign currencies and may engage in
other foreign currency transactions (such as forward currency
contracts) for investment or hedging purposes.
In
deciding which securities to buy and sell, Loomis Sayles may consider a number
of factors related to the bond issue and the current bond market,
including
for
example, the stability and volatility of a country’s bond markets, the financial
strength of the issuer, current interest rates,
current valuations, Loomis Sayles’ expectations regarding general trends in
interest rates and currency considerations. Loomis Sayles will
also consider how purchasing or selling a bond would impact the overall
portfolio’s risk profile (for example, its sensitivity to currency risk,
interest rate risk and sector-specific risk) and potential return (income and
capital gains).
Three
themes typically drive the Fund’s investment approach. First, Loomis Sayles
generally seeks fixed-income securities that are attractively
valued relative to the Loomis Sayles’ credit research team’s assessment of
credit risk. The broad coverage combined with the objective
to identify attractive investment opportunities makes this an important
component of the investment approach. Second, Loomis Sayles
analyzes political, economic and other fundamental factors and combines this
analysis with a comparison of the yield spreads of various
fixed-income securities in an effort to find securities that it believes may
produce attractive returns for the Fund in comparison to their
risk. Third, if a security that is believed to be attractive is denominated in a
foreign currency, Loomis Sayles analyzes whether to accept or
to hedge the currency risk.
In
assessing both risks and opportunities related to the Fund’s investments, Loomis
Sayles seeks to take into account the factors that may influence
an investment’s performance over time. This includes material environmental,
social, and governance (“ESG”) risks and opportunities
(those which could cause a material impact on the value of an
investment).
In
integrating risks and opportunities into its investment process, Loomis Sayles
takes into account ESG factors that it deems may be material
to an investment, such as carbon intensity, renewable energy usage from low
carbon sources, workplace diversity, and board composition,
at all stages of the investment management process, including strategy
development, investment analysis and due diligence, and
portfolio construction (including at the point where the investment team
considers investment opportunities), and as part of its ongoing monitoring
and risk analysis.
To
the extent that Loomis Sayles concludes that there is an ESG risk associated
with an investment, Loomis Sayles assesses the probability and
potential impact of that ESG risk against the potential pecuniary advantage to
the Fund of making the investment. If Loomis Sayles believes
the potential pecuniary advantage outweighs the actual or potential impact of
the ESG risk, then Loomis Sayles may still make the investment.
The
fixed-income securities in which the Fund may invest include, among other
instruments, corporate bonds and other debt securities, U.S.
government securities, commercial paper, zero-coupon securities, securitized and
mortgage-related securities (including senior and junior
loans, mortgage dollar rolls and collateralized mortgage obligations) and other
asset-backed securities, when-issued securities, securities
issued pursuant to Rule 144A under the Securities Act of 1933 (“Rule 144A
securities”), other
privately placed investments such as private
credit investments, bank loans, structured
notes, collateralized loan obligations, repurchase agreements and convertible
securities. The
Fund may also engage in options and futures transactions and swap transactions
(including credit default swaps, in which one party agrees
to make periodic payments to a counterparty in exchange for the right to receive
a payment in the event of a default of the underlying reference
security).
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In
accordance with applicable SEC requirements, the Fund will notify shareholders
prior to any change to the 80% policy discussed above taking
effect.
The
Fund may also engage in active and frequent trading of securities. Frequent
trading may produce a high level of taxable gains, including short-term
capital gains taxable as ordinary income, as well as increased trading costs,
which may lower the Fund’s return.
Loomis
Sayles Inflation Protected Securities Fund
Investment
Objective
The
Fund’s investment objective is high total investment return through a
combination of current income and capital appreciation. The Fund’s
investment objective may be changed without shareholder approval. The Fund will
provide prior written notice to shareholders before
changing the investment objective.
Principal
Investment Strategies
The
Fund will normally invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in inflation-protected securities.
The emphasis will be on debt securities issued by the U.S. Treasury (Treasury
Inflation-Protected Securities, or “TIPS”). The principal
value of these securities is periodically adjusted according to the rate of
inflation, and repayment of the original bond principal upon
maturity is guaranteed by the U.S. government.
In
deciding which securities to buy and sell, Loomis Sayles may consider a number
of factors related to the bond issue and the current bond market,
for example, the stability and volatility of a country’s bond markets, the
financial strength of the issuer, current interest rates, current valuations,
Loomis Sayles’ expectations regarding general trends in interest rates and
currency considerations. Loomis Sayles will also consider
how purchasing or selling a bond would impact the overall portfolio’s risk
profile (for example, its sensitivity to currency risk, interest
rate risk and sector-specific risk) and potential return (income and capital
gains).
The
Fund may invest in other securities, including but not limited to
inflation-protected debt securities issued by U.S. government agencies
and
instrumentalities other than the U.S. Treasury, by other entities such as
corporations and foreign governments and by foreign issuers. The
Fund may also invest in nominal (i.e., non-inflation-protected) treasury
securities, corporate bonds, securities issued pursuant to Rule 144A
under the Securities Act of 1933 (“Rule 144A securities”), other
privately placed investments such as private credit investments, structured
notes, collateralized loan obligations, asset-backed securities and
mortgage-related securities, including mortgage dollar rolls, and may
invest up to 10% of its assets in below investment-grade fixed-income securities
(commonly known as “junk bonds”). Below investment-grade
fixed-income securities are rated below investment-grade quality (i.e., none of
the three major rating agencies (Moody’s Investors
Service, Inc., Fitch Investor Services, Inc. or S&P Global Ratings) have
rated the securities in one of their respective top four ratings
categories). The Fund’s fixed-income securities investments may include unrated
securities (securities that are not rated by a rating agency)
if Loomis Sayles determines that the securities are of comparable quality to
rated securities that the Fund may purchase. The Fund may
invest in fixed-income securities of any maturity. The Fund may also invest in
swaps (including credit default swaps, in which one party agrees
to make periodic payments to a counterparty in exchange for the right to receive
a payment in the event of a default of the underlying reference
security) and other derivatives. The Fund may also engage in futures
transactions and foreign currency transactions (such as forward
currency contracts).
In
accordance with applicable SEC requirements, the Fund will notify shareholders
prior to any change to the 80% policy discussed above taking
effect.
The
Fund may also engage in active and frequent trading of securities. Frequent
trading may produce a high level of taxable gains, including short-term
capital gains taxable as ordinary income, as well as increased trading costs,
which may lower the Fund’s return.
Loomis
Sayles Institutional High Income Fund
Investment
Objective
The
Fund’s investment objective is high total investment return through a
combination of current income and capital appreciation. The Fund’s
investment objective may be changed without shareholder approval. The Fund will
provide prior written notice to shareholders before
changing the investment objective.
Principal
Investment Strategies
The
Fund will invest primarily in below investment-grade fixed-income securities
(commonly known as “junk bonds”) and other securities that
are expected to produce a relatively high level of income (including
income-producing preferred stocks and common stocks). Below investment-grade
fixed-income securities are rated below investment-grade quality (i.e., none of
the three major ratings agencies (Moody’s Investors
Service, Inc., Fitch Investor Services, Inc. or S&P Global Ratings) have
rated the securities in one of their respective top four
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ratings
categories). The Fund’s fixed-income securities investments may include unrated
securities (securities that are not rated by a rating agency)
if Loomis Sayles determines that the securities are of comparable quality to
rated securities that the Fund may purchase. The Fund may
invest in fixed-income securities of any maturity.
In
deciding which securities to buy and sell, Loomis Sayles may consider a number
of factors related to the bond issue and the current bond market,
including, for example, the stability and volatility of a country’s bond
markets, the financial strength of the issuer, current interest rates,
current valuations, Loomis Sayles’ expectations regarding general trends in
interest rates and currency considerations. Loomis Sayles will
also consider how purchasing or selling a bond would impact the overall
portfolio’s risk profile (for example, its sensitivity to currency risk,
interest rate risk and sector-specific risk) and potential return (income and
capital gains).
Three
themes typically drive the Fund’s investment approach. First, Loomis Sayles
generally seeks fixed-income securities that are attractively
valued relative to the Loomis Sayles’ credit research team’s assessment of
credit risk. The broad coverage combined with the objective
of identifying attractive investment opportunities makes this an important
component of the investment approach. Second, the Fund
may invest significantly in securities the prices of which Loomis Sayles
believes are more sensitive to events related to the underlying issuer
than to changes in general interest rates or overall market default rates. These
securities may not have a direct correlation with changes in
interest rates, thus helping to manage interest rate risk and to offer
diversified sources for return. Third, Loomis Sayles analyzes different
sectors
of the economy and differences in the yields (“spreads”) of various fixed-income
securities (U.S. governments, investment-grade corporates,
securitized assets, high-yield corporates, emerging markets, non-U.S. sovereigns
and credits, convertibles, bank loans and municipals)
in an effort to find securities that it believes may produce attractive returns
for the Fund in comparison to their risk.
The
Fund may invest up
to 50% of its assets in foreign
securities, including emerging market securities. The Fund may invest without
limit in
obligations of supranational entities (e.g., the World Bank). Although certain
securities purchased by the Fund may be issued by domestic companies
incorporated outside of the United States, the Adviser does not consider these
securities to be foreign if the issuer is included in the
U.S. fixed-income indices published by Bloomberg.
The
fixed-income securities in which the Fund may invest include, among other
instruments, corporate bonds and other debt securities (including
junior and senior loans), U.S. government securities, commercial paper,
collateralized loan obligations, zero-coupon securities, mortgage-backed
securities, including mortgage dollar rolls, stripped mortgage-backed
securities, and
collateralized
mortgage obligations, other
asset-backed
securities, when-issued securities, real estate investment trusts (“REITs”),
securities issued pursuant to Rule 144A under the
Securities Act of 1933 (“Rule 144A securities”), other
privately placed investments such as private credit investments, repurchase
agreements
and convertible securities. The Fund may also engage in options and futures
transactions, foreign currency transactions (such as forward
currency contracts) and swap transactions (including credit default swaps, in
which one party agrees to make periodic payments to a counterparty
in exchange for the right to receive a payment in the event of a default of the
underlying reference security).
The
Fund will notify shareholders prior to any change to its policy to invest
primarily in below investment-grade fixed-income securities and other
securities that are expected to produce a relatively high level of income taking
effect.
Loomis
Sayles Small Cap Growth Fund
Investment
Objective
The
Fund’s investment objective is long-term capital growth from investments in
common stocks or other equity securities. The Fund’s investment
objective may be changed without shareholder approval. The Fund will provide
prior written notice to shareholders before changing
the investment objective.
Principal
Investment Strategies
The
Fund normally will invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in the equity securities of “small-cap
companies,” including preferred stocks, warrants, securities convertible into
common or preferred stocks and other equity-like interests
in an entity. Currently, the Fund defines a small-cap company to be one whose
market capitalization falls
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 companies of any size, including large-capitalization companies.
In
deciding which securities to buy and sell, Loomis Sayles typically seeks to
identify companies that it 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 and sell decisions.
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. Although certain equity securities purchased by the
Fund may be issued by domestic companies incorporated
outside of the United States, the Adviser does not consider these securities to
be foreign if they are included in the U.S. equity
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indices
published by S&P Global Ratings or Russell Investments. The Fund may also
invest in securities issued pursuant to Rule 1444A under
the Securities Act of 1933 (“Rule 144A securities”)
and other privately placed investments such as private equity
investments.
The
Fund may engage, for hedging and investment purposes, in foreign currency
transactions (such as forward currency contracts), options and
futures transactions.
In
accordance with applicable SEC requirements, the Fund will notify shareholders
prior to any change to the 80% policy discussed above taking
effect.
Loomis
Sayles Small Cap Value Fund
Investment
Objective
The
Fund’s investment objective is long-term capital growth from investments in
common stocks or other equity securities. The Fund’s investment
objective may be changed without shareholder approval. The Fund will provide
prior written notice to shareholders before changing
the investment objective.
Principal
Investment Strategies
The
Fund normally will invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in the equity securities of “small-cap
companies,” including preferred stocks, warrants, securities convertible into
common or preferred stocks and other equity-like interests
in an entity. Currently, the Fund defines a small-cap company to be one whose
market capitalization falls 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 companies of any size, including large-capitalization companies.
In
deciding which securities to buy and sell, Loomis Sayles seeks to identify
securities of smaller companies that it believes are undervalued by
the market
using a disciplined bottom-up approach to investing. Utilizing fundamental
research, Loomis Sayles seeks to identify those stocks
selling at a discount to its assessment of intrinsic value.
The Fund’s investments focus
on market inefficiencies and may
include companies
that are
misunderstood by other investors; are undergoing a change in the business model
or financial structure; or those
companies
that are not yet well-known to the investment community but are considered to
have favorable fundamental prospects and attractive
valuation. The portfolio managers analyze fundamental trends across the various
industries in the sectors and use this information along
with security valuation procedures to determine which stocks they believe are
best positioned to outperform the industry or sector. Sell decisions
are made when there is a deterioration in fundamentals, a stock reaches a target
price or a more attractive opportunity is found.
The
Fund may invest up to 20% of its assets in foreign securities, including
emerging markets securities. Although certain equity securities purchased
by the Fund may be issued by domestic companies incorporated outside of the
United States, the Adviser does not consider these securities
to be foreign if they are included in the U.S. equity indices published by
S&P Global Ratings or Russell Investments. The Fund may
also invest in real estate investment trusts (“REITs”), securities issued
pursuant to Rule 144A under the Securities Act of 1933 (“Rule 144A
securities”)
and other privately placed investments such as private equity investments
and,
to the extent permitted by the Investment Company
Act of 1940, and the rules thereunder (the “1940 Act”), investment companies.
The Fund may engage, for hedging and investment
purposes, in foreign currency transactions (such as forward currency contracts),
options and futures transactions.
In
accordance with applicable SEC requirements, the Fund will notify shareholders
prior to any change to the 80% policy discussed above taking
effect.
Loomis
Sayles Small/Mid Cap Growth Fund
Investment
Objective
The
Fund’s investment objective is long-term capital growth from investments in
common stocks or other equity securities. The Fund’s investment
objective may be changed without shareholder approval. The Fund will provide
prior written notice to shareholders before changing
the investment objective.
Principal
Investment Strategies
The
Fund normally will invest at least 80% of its net assets (plus any borrowings
made for investment purposes) in the equity securities of “small/mid-cap
companies,” including preferred stocks, warrants and securities convertible into
common or preferred stocks. Currently, the Fund
defines a small/mid-cap company to be one whose market capitalization
falls
within the capitalization range of the Russell 2500™ Index,
an index that tracks some or all of the stocks of the 2,500 of the smallest U.S.
companies.
The Fund may invest the rest of its assets in companies
of any size, including large-capitalization companies.
In
deciding which securities to buy and sell, Loomis Sayles typically seeks to
identify companies that it believes have distinctive products, technologies,
or services; dynamic earnings growth; prospects for high levels of
profitability; and solid management. Loomis Sayles typically
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does
not consider current income when making buy and sell decisions.
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. Although certain equity securities purchased by the
Fund may be issued by domestic companies incorporated
outside of the United States, the Adviser does not consider these securities to
be foreign if they are included in the U.S. equity indices
published by S&P Global Ratings or Russell Investments. The Fund may also
invest in securities issued pursuant to Rule 144A under
the Securities Act of 1933 (“Rule 144A securities”)
and other privately placed investments such as private equity
investments.
The
Fund may engage, for hedging and investment purposes, in foreign currency
transactions (such as forward currency contracts), options and
futures transactions.
In
accordance with applicable SEC requirements, the Fund will notify shareholders
prior to any change to the 80% policy discussed above taking
effect.
The
Fund may also engage in active and frequent trading of securities. Frequent
trading may produce a high level of taxable gains, including short-term
capital gains taxable as ordinary income, as well as increased trading costs,
which may lower the Fund’s return.
TEMPORARY
DEFENSIVE MEASURES
Temporary
defensive measures may be used by a Fund during adverse economic, market,
political or other conditions. In this event, each Fund
may hold any portion of its assets in cash (U.S. dollars, foreign currencies or
multinational currency units) and/or invest in cash equivalents
such as money market instruments or high-quality debt securities as it deems
appropriate. A Fund may miss certain investment opportunities
if it uses defensive strategies and thus may not achieve its investment
objective.
DERIVATIVES
TRANSACTIONS
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 (including credit default swaps), forward transactions
and foreign currency transactions. The Funds may (but are not required to) use
derivatives as part of a strategy designed to reduce
exposure to other risks, such as risks associated with changes in interest rates
or currency risk (“hedging”). When a derivative is used as
a hedge against an offsetting position that a Fund also holds, any gains
generated by the derivative should be substantially offset by losses
on
the hedged instrument, and vice versa. To the extent that a Fund uses a
derivative for purposes other than as a hedge, or if a Fund hedges imperfectly,
the Fund is directly exposed to the risks of that derivative and any loss
generated by the derivative will not be offset by a gain. The
Funds may also use derivatives for leverage, which increases opportunities for
gain, to earn income, enhance yield or broaden the Fund’s diversification
by gaining exposure to issuers, indices, sectors, currencies and/or geographic
regions. A Fund may be required to sell
other securities
at inopportune times to meet collateral requirements on its derivatives
transactions.
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 Investment Company Act of 1940, as amended (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 of interest unrelated to the coupon rate
on the purchased security. Such transactions afford a Fund
the opportunity to earn a return on its cash at what is expected to be minimal
market/issuer risk. A Fund may invest in a repurchase agreement
that does not produce a positive return to the Fund if Loomis Sayles believes it
is appropriate to do so under the circumstances (for
example, to help protect the Fund’s uninvested cash against the risk of loss
during periods of market turmoil). There is a risk that the seller
may fail to repurchase the underlying security. In such event, a Fund would
attempt to exercise rights with respect to the underlying security,
including possible disposition in the market. However, a Fund may be subject to
various delays and risks of loss, including possible declines
in the value of the underlying security, possible reduced levels of income,
inability to enforce rights and expenses involved in attempted
enforcement. Repurchase agreements maturing in more than seven days may be
considered illiquid securities.
SECURITIES
LENDING
Each
Fund may lend a portion of its portfolio securities to brokers, dealers and
other financial institutions, provided that a number of conditions
are satisfied, including that the loan is fully collateralized. Please see the
section “Investment Strategies” in the Statement of Additional
Information (the “SAI”) for details. When a Fund lends portfolio securities, its
investment performance will continue to reflect changes
in the value of the securities loaned, and the Fund will also receive a fee or
interest on the collateral. These fees or interest are income
to a Fund, although the Fund often must share the income with the securities
lending agent and/or the borrower. Securities lending involves,
among other risks, the risk of loss of rights in the collateral or delay in
recovery of the collateral if the borrower fails to return the security
loaned or becomes insolvent. The Funds may pay lending fees to the party
arranging the loan. In addition, any investment of cash is generally
at the sole risk of a Fund. Any income or gains and losses from investing and
reinvesting any cash collateral delivered by a borrower pursuant
to a loan are generally at a Fund’s risk, and to the extent any such losses
reduce the amount of cash below the amount required to be
returned to the borrower upon the termination of any loan, the Fund may be
required by the securities lending agent to pay or cause to be
paid to such borrower an amount equal to such shortfall in cash, possibly
requiring it to liquidate other portfolio securities to satisfy its obligations.
Each Fund’s securities lending activities are implemented pursuant to policies
and procedures approved by the Board of Trustees
and are subject to Board oversight.
PERCENTAGE
INVESTMENT LIMITATIONS
Except
as set forth in the SAI, the percentage limitations set forth in this Prospectus
and the SAI apply at the time an investment is made and
shall not be considered violated unless an excess or deficiency occurs or exists
immediately after and as a result of such investment.
PORTFOLIO
HOLDINGS
A
description of the Funds’ policies and procedures with respect to the disclosure
of each Fund’s portfolio securities is available in the Funds’ SAI.
A
“snapshot” of each Fund’s investments may be found in each Fund’s annual and
semiannual reports. In addition, a list of the
Fund’s full portfolio
holdings, which is updated monthly after an aging period of at least 30 days (60
days for Loomis Sayles Small Cap Value Fund)
is available
on the Fund’s
website at www.loomissayles.com (click on the
drop-down menu titled “Retail” then “Holdings”, then “View Holdings”).
These holdings will remain accessible on the website until
the
Fund files its Form N-CSR or Form N-PORT with the SEC for the
period that includes the date of the information. In addition, a list of
the
Fund’s top 10 holdings as of the month-end is generally available
within 7 business days after the month-end on the Fund’s
website at www.loomissayles.com (click on the
drop-down menu titled “Retail”,
then “Holdings”, then “View Holdings” (click fund name)).
Please see the back cover of this Prospectus for more information on
obtaining
a copy of a Fund’s current annual or semiannual report.
more
about risk
This
section provides more information on certain principal risks that may affect a
Fund’s portfolio, as well as information on additional risks
a Fund may be subject to because of its investments or practices. In seeking to
achieve their investment goals, the Funds may also invest in
various types of securities and engage in various investment practices which are
not a principal focus of the Funds and therefore are not described
in this Prospectus. These securities and investment practices and their
associated risks are discussed in the Funds’ SAI, which is available
without charge upon request (see back cover). The significance of any specific
risk to an investment in a Fund will vary over time,
depending
on the composition of the Fund’s portfolio, market conditions, and other
factors. You should read all of the risk information presented
below carefully, because any one or more of these risks may result in losses to
the Funds.
Fund
shares are not bank deposits and are not guaranteed, endorsed or insured by the
Federal Deposit Insurance Corporation or any other government
agency, and are subject to investment risks, including possible loss of the
principal invested.
RECENT
MARKET EVENTS RISK
The
COVID-19 pandemic resulted in, among other things, significant market
volatility, exchange trading suspensions and closures, declines in
global financial markets, higher default rates, and economic downturns and
recessions, and may continue to have similar effects in the future.
Such factors, and the effects of other infectious illness outbreaks, epidemics,
or pandemics, may have a significant adverse effect on a Fund’s
performance, exacerbate other risks that apply to a Fund, exacerbate existing
economic, political, or social tensions, have the potential
to impair the ability of a Fund’s investment adviser or other service providers
to serve the Fund, and lead to disruptions that negatively
impact a Fund.
In
addition, Russia’s military invasion of Ukraine in February 2022, the resulting
responses by the United States and other countries, and the
potential for wider conflict could increase volatility and uncertainty in the
financial markets and adversely affect regional and global economies.
These and any related events could significantly impact a Fund’s performance and
the value of an investment in the Fund, even if
the Fund does not have direct exposure to Russian issuers or issuers in other
countries affected by the invasion. Other issuers or markets could
be similarly affected by past or future geopolitical or other events or
conditions.
BANK
LOANS RISK
The
Fund’s investments in bank loans are subject to credit risk may not be
adequately collateralized. Indebtedness of borrowers whose creditworthiness
is poor involves substantially greater risks and may be highly speculative. The
interest rates on many bank loans reset frequently,
and thus bank loans are subject to interest rate risk. Most bank loans, like
most investment-grade bonds, are not traded on any national
securities exchange. There may also be less public information available about
bank loans as compared to other debt securities. Some
loans may not be considered “securities” for certain purposes under the federal
securities laws, and purchasers, such as the Fund, therefore
may not be entitled to rely on the anti-fraud protections of the federal
securities laws.
Transactions
in bank loans may settle on a delayed basis, such that the Fund may not receive
the proceeds from the sale of a loan for a substantial
period of time after the sale. In order to finance redemptions pending
settlement of bank loans, the Fund may employ a wide variety
of means to meet short-term liquidity needs, including, without limitation,
drawing on its cash and other short-term positions, all of which
may adversely affect the Fund’s performance.
BELOW
INVESTMENT-GRADE FIXED-INCOME SECURITIES RISK
Below
investment-grade fixed-income securities, also known as “junk bonds,” are rated
below investment-grade quality and may be considered
speculative with respect to the issuer’s continuing ability to make principal
and interest payments. To be considered rated below investment-grade
quality, a security must not have been rated by any of the three major rating
agencies (Moody’s Investors Service, Inc., Fitch
Investor Services, Inc. or S&P Global Ratings) in one of their respective
top four rating categories at the time a Fund acquires the security
or, if the security is unrated, the portfolio managers must have determined it
to be of comparable quality. Analysis of the creditworthiness
of issuers of below investment-grade securities may be more complex than for
issuers of higher-quality debt securities, and a Fund’s
ability to achieve its investment objectives may, to the extent the Fund invests
in below investment-grade securities, be more dependent
upon the portfolio managers’ credit analysis than would be the case if the Fund
were investing in higher-quality securities. The issuers
of these securities may be in default or have a currently identifiable
vulnerability to default on their payments of principal and interest,
or may otherwise present elements of danger with respect to payments of
principal or interest.
Below
investment-grade securities may be more susceptible to real or perceived adverse
economic and competitive industry conditions than higher-grade
securities. Yields on below investment-grade securities will fluctuate.
When
a Fund makes an investment, the Fund may incur costs,
such as transactional or legal expenses, associated with the investment. With
respect to investments in distressed instruments, including
some below investment grade fixed-income securities, a Fund may be more likely
to incur additional expenses. For example, if the
issuer
of below investment-grade securities defaults, a Fund may incur additional
expenses to seek recovery.
The
secondary markets in which below investment-grade securities are traded may be
less liquid than the market for higher-grade securities. A
lack of liquidity in the secondary trading markets could adversely affect the
price at which a Fund could sell a particular below investment-grade
security when necessary to meet liquidity needs or in response to a specific
economic event, such as a deterioration in the creditworthiness
of the issuer, and could adversely affect and cause large fluctuations in the
net asset value (“NAV”) of a Fund’s shares.
Adverse
publicity and investor perceptions may decrease the values and liquidity of high
yield securities generally.
It
is reasonable to expect that any adverse economic conditions could disrupt the
market for below investment-grade securities, have an adverse
impact on the value of such securities and adversely affect the ability of the
issuers of such securities to repay principal and pay interest
thereon. New laws and proposed new laws may adversely impact the market for
below investment-grade fixed-income securities.
COLLATERALIZED
LOAN OBLIGATION RISK
Investments
in CLOs involve risks in addition to the risks associated with investments in
debt obligations and other fixed-income securities such
as credit risk, interest rate risk, liquidity risk and market/issuer risk. The
degree of such risk will generally correspond to the type of underlying
assets and the specific tranche in which a Fund is invested. A CLO’s performance
is linked to the expertise of the CLO manager and
its ability to manage the CLO’s portfolio. Changes in the regulation of CLOs may
adversely affect the value of the CLO investments held
by a Fund. The tranche of the CLO held by a Fund may be subordinate to other
classes of the CLO’s debt. CLO debt is payable solely from
the proceeds of the CLO’s underlying assets and, therefore, if the income from
the underlying loans is insufficient to make payments on
one or more tranches of the CLO’s debt, no other assets will be available for
payment. CLO debt securities may be subject to redemption and
the timing of redemptions may adversely affect the returns on CLO debt. The CLO
manager may not find suitable assets in which to invest
and the CLO manager’s opportunities to invest may be limited.
CREDIT/COUNTERPARTY
RISK
This
is the risk that the issuer or the guarantor of a fixed-income security, the
issuer or guarantor of a security backing an asset-backed security,
or the counterparty to a derivatives or an over-the-counter (“OTC”) transaction
will be unable or unwilling to make timely payments
of interest or principal or to otherwise honor its obligations. Each Fund will
be subject to credit/counterparty risk to the extent that
it invests in fixed-income securities or asset-backed securities or is a party
to derivatives or OTC transactions. This risk will be heightened
to the extent a Fund enters into derivatives
transactions with a single counterparty (or affiliated counterparties that are
part of the same
organization), causing the Fund to have significant exposure to such
counterparty. Many of the protections afforded to participants on organized
exchanges and clearing houses, such as the performance guarantee given by a
central clearing house, are not available in connection
with OTC derivatives transactions, such as foreign currency transactions. For
centrally cleared derivatives, such as cleared swaps, futures
and many options, the primary credit/counterparty risk is the creditworthiness
of the Fund’s clearing broker and the central clearing house
itself.
Funds
that invest in below investment-grade fixed-income securities are subject to
greater credit/counterparty risk (because such securities are
subject to a greater risk of default) and market/issuer risk than funds that
invest in higher quality fixed-income securities. Below investment-grade
fixed-income securities, including senior loans and other floating rate
securities that are rated below investment-grade,
are considered
predominantly speculative with respect to the ability of the issuer to make
timely principal and interest payments. The value of loans
made to such borrowers is likely to be more sensitive to adverse news about the
borrower, markets or economy. The amount of public information
with respect to senior loans may be less extensive than that is available for
registered or exchange-listed securities.
The
Funds’ investments in securities issued by U.S. government agencies are subject
to credit/counterparty risk. Agencies of the U.S. government
are guaranteed as to the payment of principal and interest of the relevant
entity but are not backed by the full faith and credit of the
U.S. government. An event affecting the guaranteeing entity could adversely
affect the payment of principal or interest or both on the security,
and therefore, these types of securities should be considered to be riskier than
U.S. government securities.
Funds
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)
will be subject to greater credit/counterparty risk.
Funds
that invest in foreign securities are subject to increased credit/counterparty
risk, because, for example, of the difficulties of requiring foreign
entities to honor their contractual commitments and because financial reporting
and other standards are often less robust in foreign countries.
CURRENCY
RISK
This
is the risk that fluctuations in exchange rates between the U.S. dollar and
foreign currencies or between two or more foreign currencies may
cause the value of a Fund’s investments to decline. Funds that may invest in
securities or other instruments denominated in, or that receive
revenues in, foreign currency are subject to currency risk. Loomis Sayles may
elect not to hedge currency risk or may hedge imperfectly,
which may cause the Fund to incur losses that would not have been incurred had
the risk been hedged. The market for some (or
all) currencies may from time to time have low trading volume and become
illiquid, which may prevent a Fund from effecting positions or
from promptly liquidating unfavorable positions in such markets, thus subjecting
the Fund to substantial losses.
CYBERSECURITY
AND TECHNOLOGY RISK
The
Funds, their service providers, and other market participants increasingly
depend on complex information technology and communications
systems, which are subject to a number of different threats and risks that could
adversely affect the Funds and their shareholders.
These risks include, among others, theft, misuse, and improper release of
confidential or highly sensitive information relating to
the Funds and their shareholders, as well as compromises or failures to systems,
networks, devices and applications relating to the operations
of the Funds and their service providers,
including those relating to the performance and effectiveness of security
procedures used by
a Fund or its service providers to protect a Fund’s assets.
Power outages, natural disasters, equipment malfunctions and processing errors
that
threaten these systems, as well as market events that occur at a pace that
overloads these systems, may also disrupt business operations or impact
critical data. There
may be an increased risk of cyber-attacks during periods of geopolitical or
military conflict, and geopolitical tensions
may increase the scale and sophistication of deliberate cybersecurity attacks,
particularly those from nation-states or from entities with
nation-state backing. Any problems relating to the performance and effectiveness
of security procedures used by a Fund or its service providers
to protect a Fund’s assets, such as algorithms, codes, passwords, multiple
signature systems, encryption and telephone call-backs, may
have an adverse impact on an investment in a Fund. Cybersecurity
and other operational and technology issues may result in financial losses
to the Funds and their shareholders, impede business transactions, violate
privacy and other laws, subject the Funds to certain regulatory
penalties and reputational damage, and increase compliance costs and expenses.
Furthermore,
as a Fund’s assets grow, it may become
a more appealing target for cybersecurity threats such as hackers and malware.
Although
the Funds have developed processes and risk
management systems designed to reduce these risks, the Funds do not directly
control the cybersecurity defenses, operational and technology
plans and systems of their service providers, financial intermediaries and
companies in which they invest or with which they do business.
Similar types of cybersecurity risks also are present for issuers of securities
in which the Funds invest, which could result in material adverse
consequences for such issuers, and may cause the Funds’ investment in such
securities to lose value.
DERIVATIVES
RISK
As
described herein and in the SAI, the use of derivatives involves special risks.
To the extent that a Fund uses a derivative for purposes other than
as a hedge, or if a Fund hedges imperfectly, a Fund is directly exposed to the
risks of that derivative and any loss generated by the derivative
will not be offset by a gain. A Fund may also use derivatives for leverage,
which increases opportunities for gain but also involves greater
risk of loss due to leverage risk, and to earn income, enhance yield or broaden
the Fund’s diversification by gaining exposure to issuers,
indices, sectors, currencies and/or geographic regions. The use of derivatives
for these purposes entails greater risk than using derivatives
solely for hedging purposes.
Funds
that use derivatives also face additional risks, such as liquidity risk;
market/issuer risk; management risk; the credit/counterparty risk relating
to the other party to a derivative contract (which is generally greater for
forward currency contracts, uncleared swaps and other OTC derivatives
than for centrally cleared derivatives); the risk of difficulties in pricing and
valuation; the risk of ambiguous documentation and the
risk that changes in the value of a derivative may not correlate perfectly with
relevant assets, rates or indices. This could, for example, cause
a derivatives
transaction to imperfectly hedge the risk which it was intended to hedge. A
Fund’s use of derivative instruments may involve
risks greater than the risks associated with investing directly in securities
and other traditional investments, may cause the Fund to lose
more than the principal amount invested and may subject a Fund to the potential
for unlimited loss. A Fund may be required to sell other
securities at inopportune times to meet collateral requirements on its
derivatives transactions. In addition, a Fund’s use of derivatives may
increase or accelerate the amount of taxes payable by shareholders. Also,
suitable derivatives
transactions may not be available in all circumstances
and there can be no assurance that a Fund will engage in these transactions to
reduce exposure to other risks when that would be
beneficial or that, if used, such strategies will be successful.
A
Fund’s derivative counterparties may experience financial difficulties or
otherwise be unwilling or unable to honor their obligations, possibly
resulting in losses to the Fund. Losses resulting from the use of derivatives
will reduce a Fund’s NAV, and possibly income, and the losses
may be significantly greater than if derivatives had not been used. It is
possible that a Fund’s liquid assets may be insufficient to support
its obligations under its derivative positions. When used, a Fund’s use of
derivatives may affect the timing,
amount
or character of distributions
payable to, and thus taxes payable by, shareholders. Similarly, for accounting
and performance reporting purposes, income and gain
characteristics may be different than if a Fund held the underlying securities
or other assets directly.
Derivatives
that are centrally cleared are subject to the credit/counterparty risk of the
clearing house and the member of the clearing house through
which a Fund holds its cleared position. If a Fund’s counterparty, clearing
house, or clearing house member were to default, the Fund
could lose a portion or all of the collateral held by the counterparty, clearing
house, or clearing house member, or suffer extended delays
in recovering that collateral.
Rule
18f-4 under the 1940 Act governs the use of derivative investments and certain
financing transactions by registered investment
companies.
Among other things, Rule 18f-4 requires funds that invest in derivative
instruments beyond a specified limited amount to apply a
value-at-risk based limit to their use of derivative instruments and financing
transactions and to adopt and implement a derivatives risk management
program. A fund that uses derivative instruments in a limited amount is not
subject to the full requirements of Rule 18f-4. Compliance
with the rule could, among other things, make derivatives more costly, limit
their availability or utility, or otherwise adversely affect
their performance.
EMERGING
MARKETS RISK
In
addition to the risks of investing in foreign investments generally, emerging
markets investments are subject to greater risks arising from political
or economic instability, war, nationalization or confiscatory taxation, currency
exchange or repatriation restrictions, sanctions by other
countries (such as the United States or the European Union), new or inconsistent
government treatment of or restrictions on issuers and
instruments, and an issuer’s unwillingness or inability to make dividend,
principal or interest payments on its securities. Emerging markets
companies may be smaller and have shorter operating histories than companies in
developed markets. In addition, pandemics and outbreaks
of contagious diseases may exacerbate pre-existing problems in emerging market
countries with less established health care systems.
Economic
and Political Risks.
Emerging market countries often experience instability in their political and
economic structures and have less
market depth, infrastructure, capitalization and regulatory oversight than more
developed markets. Government actions could have a significant
impact on the economic conditions in such countries, which in turn would affect
the value and liquidity of the assets of a Fund invested
in emerging market securities. Specific risks that could decrease a Fund’s
return include seizure of a company’s assets, restrictions imposed
on payments as a result of blockages on foreign currency exchanges or
sanctions, and
unanticipated social or political occurrences.
The
ability of the government of an emerging market country to make timely payments
on its debt obligations will depend on many factors, including
the extent of its reserves, fluctuations in interest rates and access to
international credit and investments. A country that has non-diversified
exports or relies on certain key imports will be subject to greater fluctuations
in the pricing of those commodities. Failure to generate
sufficient earnings from foreign trade will make it difficult for an emerging
market country to service its foreign debt.
Companies
trading in emerging markets are generally smaller and have shorter operating
histories than companies trading in developed markets.
Foreign investors may be required to register the proceeds of sales. Settlement
of securities transactions in emerging markets may be subject
to risk of loss and may be delayed more often than transactions settled in the
United States, in part because a Fund will need to use brokers
and counterparties that are less well capitalized, and custody and registration
of assets in some countries may be unreliable compared to
more developed countries. Disruptions resulting from social and political
factors may cause the securities markets to close. If extended closings
were to occur, the liquidity and value of a Fund’s assets invested in corporate
debt obligations of emerging market companies would decline.
Investment
Controls; Repatriation.
Foreign investment in emerging market country debt securities is restricted or
controlled to varying degrees.
These restrictions may at times limit or preclude foreign investment in certain
emerging market country debt securities. Certain emerging
market countries require government approval of investments by foreign persons,
limit the amount of investments by foreign persons
in a particular issuer, limit investments by foreign persons only to a specific
class of securities of an issuer that may have less advantageous
rights than the classes available for purchase by domiciliaries of the countries
and/or impose additional taxes or controls on foreign
investors or currency transactions. Certain emerging market countries may also
restrict investment opportunities in issuers in industries
deemed important to national interests.
Emerging
market countries may require governmental approval for the repatriation of
investment income, capital or proceeds of sale of securities
by foreign investors. In addition, if a deterioration occurs in an emerging
market country’s balance of payments, the country could impose
temporary restrictions on foreign capital remittances. A Fund could be adversely
affected by delays in, or a refusal to grant, any required
governmental approval for repatriation of capital, as well as by the application
to a Fund of any restrictions on investments. Investing
in local markets in emerging market countries may require a Fund to adopt
special procedures, seek local governmental approvals or
take other actions, each of which may involve additional costs to a
Fund.
EQUITY
SECURITIES RISK
The
value of a Fund’s investments in equity securities is subject to the risks of
unpredictable declines in the value of individual securities and periods
of below-average performance in individual securities, industries or in the
equity market as a whole. The market value of a security can
change daily due to political, economic and other events that affect the
securities markets generally, as well as those that affect particular
companies
or governments. These price movements, sometimes called volatility, will vary
depending on the types of securities a Fund owns and
the markets in which they trade. Historically, the equity markets have moved in
cycles, and the value of a Fund’s equity securities may
fluctuate
drastically from day to day. Individual companies may report poor results or be
negatively affected by industry and/or economic trends
and developments. The prices of securities issued by such companies may suffer a
decline in response to such trends and developments.
In addition, the value of stock in a Fund’s portfolio may decline for a number
of reasons that relate directly to the issuer. Those
reasons may include, among other things, management performance, the effects of
financial leverage and reduced demand for a company’s
goods and services. Equity securities may take the form of stock in
corporations, limited partnership interests, interests in limited liability
companies, real
estate investment trusts (“REITs”)
or other trusts and other similar securities. Rule 144A securities may be less
liquid
than other equity securities. Equity securities may include common stock,
preferred stocks, warrants, securities convertible into common
and preferred stocks and other equity-like interests in an entity. In the event
an issuer is liquidated or declares bankruptcy, the claims
of owners of the issuer’s bonds generally take precedence over the claims of
those who own preferred stock or common stock.
ESG
RISK
ESG
Risk is the risk related to ESG factors that may impact the performance of
securities in which a Fund invests. Such ESG factors include,
for example, climate change; resource depletion; renewal energy usage;
governance, diversity and labor practices; workplace health and
safety; supply chain standards; and product health and safety. The companies or
issuers in which a Fund invests may not have favorable ESG
characteristics. Evaluation of ESG factors is qualitative and subjective by
nature, and there is no guarantee that any judgment exercised by
a Fund’s adviser will improve the financial performance of the Fund or reflect
the beliefs or values of any particular investor.
FOREIGN
SECURITIES RISK
This
is the risk associated with investments in issuers that are located or do
business in foreign countries. A Fund’s investments in foreign securities
may be less liquid and may experience more rapid and extreme changes in value
than investments in securities of U.S. issuers.
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, disclosure, custody
and auditing standards and practices of foreign countries differ, in some cases
significantly, from U.S. standards and practices, and are
often not as rigorous. The Public Company Accounting Oversight Board, which
regulates auditors of U.S. public companies, is unable to
inspect audit work papers in certain foreign countries. Among other things,
nationalization, expropriation or confiscatory taxation, currency
blockage, the imposition of sanctions or
threat thereof by
other countries (such as the United States), political changes or diplomatic
developments,
as well as civil unrest, geopolitical tensions, wars and acts of terrorism, may
impair a Fund’s ability to buy, sell, hold,
receive, deliver or otherwise transact in certain securities and
can cause the value of a Fund’s investments in a foreign country to decline.
In the event of nationalization, expropriation,
confiscation,
or other government
action, intervention, or restriction,
a Fund could lose
its entire investment
in a particular foreign issuer or country.
These risks also apply to securities of foreign issuers traded in the United
States
or through depositary receipt programs such as American Depositary
Receipts.
Funds
that invest in emerging markets may face greater foreign risk since emerging
market countries may be more likely to experience political
and economic instability. See “Emerging Markets Risk.”
INFLATION/DEFLATION
RISK
Inflation
risk is the risk that the value of assets or income from investments will be
worth less in the future as inflation decreases the present value
of future payments. As
inflation increases, the real value of a Fund’s portfolio could decline.
Inflation rates may change frequently and drastically
as a result of various factors, including unexpected shifts in the domestic or
global economy (or expectations that such policies will change),
and a Fund’s investments may not keep pace with inflation, which may result in
losses to the Fund’s investors. Recently, inflation rates
in the United States and elsewhere have been increasing. There can be no
assurance that this trend will not continue or that efforts to slow
or reverse inflation will not harm the economy and asset values. This risk is
elevated compared to historical market conditions because of
recent monetary policy measures and the current interest rate environment.
Deflation
risk is the risk that prices throughout the economy decline
over time (the opposite of inflation). Deflation may have an adverse effect on
the creditworthiness of issuers and may make issuer default
more likely, which may result in a decline in the value of a Fund’s
portfolio.
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 and derivatives. 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 a Fund’s investments to decline. Interest
rates can also change in response to the supply and demand for credit, inflation
rates, and other factors. Potential
future changes in government
and/or
central bank monetary
policy and
action may
also
affect
the level of interest rates. In addition, the value of certain derivatives
(such as interest rate futures) is related to changes in interest rates and may
suffer significant price declines as a result of interest
rate
changes. A prolonged period of low interest rates may cause a Fund to have a low
or negative yield, potentially reducing the value of your
investment. Generally, the value of fixed-income securities, including
short-term fixed-income securities, rises when prevailing interest rates
fall and falls when interest rates rise.
Even
funds
that generally invest a significant portion of their assets in high quality
fixed-income securities are subject to interest rate risk. Interest
rate risk is greater for funds that generally
invest
a significant portion of their assets in below investment-grade fixed-income
securities
(commonly known as “junk bonds”) or comparable unrated securities. Interest rate
risk also is greater for funds that generally
invest
in fixed-income securities with longer maturities or durations than for funds
that invest in fixed-income securities with shorter maturities
or durations. A significant change in interest rates could cause a Fund’s share
price (and the value of your investment) to change.
Interest
rate risk is compounded for funds
when they invest a significant portion of their assets in mortgage-related or
asset-backed securities because
the value of mortgage-related and asset-backed securities generally is more
sensitive to changes in interest rates than other types of fixed-income
securities. In addition, these types of securities are subject to the risk of
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.
Funds
also face increased interest rate risk when they invest in fixed-income
securities paying no current interest (such as zero-coupon securities
and principal-only securities), interest-only securities and fixed-income
securities paying non-cash interest in the form of other fixed-income
securities because the prices of those types of securities tend to react more to
changes in interest rates.
Recently,
there have been inflationary price movements, which have caused the fixed income
securities markets to experience heightened levels
of interest volatility and liquidity risk. Monetary policy measures have in the
past, and may in the future, exacerbate risks associated with
rising interest rates.
INVESTMENTS
IN OTHER INVESTMENT COMPANIES RISK
This
is the risk that a Fund will indirectly bear the management service and other
fees of the other investment company in addition to its own
expenses. The Fund is also indirectly exposed to the same risks as the other
investment companies in proportion to the allocation of the Fund’s
assets among the other investment companies.
LARGE
INVESTOR RISK
Ownership
of shares of a Fund may be concentrated in one or a few large investors. Such
investors may redeem shares in large quantities or on
a frequent basis. If a large investor redeems a portion or all of its investment
in a Fund or redeems frequently, the Fund may be forced to sell
investments at unfavorable times or prices, which can affect the performance of
the Fund and may increase realized capital gains. In addition,
such transactions may accelerate the realization of taxable income to
shareholders if a Fund’s sales of investments result in gains, and
also may increase transaction costs. These transactions potentially limit the
use of any capital loss carryforwards and certain other losses to
offset future realized capital gains (if any). Such transactions may also
increase a Fund’s expenses or could result in the Fund’s current expenses
being allocated over a smaller asset base, leading to an increase in the Fund’s
expense ratios.
LEVERAGE
RISK
When
a Fund borrows money or otherwise leverages its portfolio, the value of an
investment in the Fund may be more volatile, and other risks
are generally compounded. Funds face this risk if they create leverage by using
investments such as reverse repurchase agreements, inverse
floating-rate instruments or derivatives, or by borrowing money. The use of
leverage may lead to losses that are greater than if a Fund had
not used leverage.
LIQUIDITY
RISK
Liquidity
risk is the risk that a Fund may be unable to find a buyer for its investments
when it seeks to sell them or to receive the price it expects.
Decreases in the number of financial institutions willing to make markets in a
Fund’s investments or in their capacity or willingness to
transact may increase the Fund’s exposure to this risk. Events that may lead to
increased redemptions, such as market disruptions or increases
in interest rates, may also negatively impact the liquidity of a Fund’s
investments when it needs to dispose of them. Markets
may become
illiquid quickly. If
a Fund is forced to sell its investments at an unfavorable time and/or under
adverse conditions in order to meet redemption
requests, such sales could negatively affect the Fund. Securities acquired in a
private placement, such as Rule 144A securities
and privately
negotiated credit and other investments,
are generally subject to significant liquidity risk because they are subject to
strict restrictions
on resale and there may be no liquid secondary market or ready purchaser for
such securities. Non-exchange
traded derivatives are
generally subject to greater liquidity risk as well. In other circumstances,
liquid investments may become illiquid. Liquidity
issues may also
make it difficult to value a Fund’s investments. A
Fund may invest in liquid investments that become illiquid due to financial
distress,
or
geopolitical events such as sanctions, trading halts or wars. In
some cases, especially during times
of market turmoil, there
may be no buyers
or sellers for securities in certain asset classes and a
redemption may dilute the interest of the remaining shareholders.
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,
securities that Loomis Sayles expects may appreciate in value
may in fact decline. Similarly, in some cases derivative and other investment
techniques may be unavailable or Loomis Sayles may decide
not to use them, even under market conditions where their use could have
benefited a Fund.
MARKET/ISSUER
RISK
The
market value of a Fund’s investments will move up and down, sometimes rapidly
and unpredictably, based upon political, regulatory, market,
economic, and social conditions, as well as developments that impact specific
economic sectors, industries, or segments of the market,
including conditions that directly relate to the issuers of the Fund’s
investments, such as management performance, financial condition
and demand for the issuers’ goods and services. The Funds are subject to the
risk that geopolitical events will adversely affect global
economies and markets. War, terrorism, and related geopolitical events have led,
and in the future may lead, to increased short-term market
volatility and may have adverse long-term effects on global economies and
markets
or on specific sectors, industries and countries.
Likewise,
natural and environmental disasters and epidemics or pandemics may be highly
disruptive to economies and markets.
Events such as
these and their impact on the Funds may be difficult or impossible to
predict.
MORTGAGE-RELATED
AND ASSET-BACKED SECURITIES RISK
Mortgage-related
securities, such as Government National Mortgage Association certificates or
securities issued by the Federal National Mortgage
Association, 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 a Fund purchases these assets (or other
asset-backed securities) 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 a Fund
purchases mortgage-related securities (or other asset-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 a 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. In addition, an increase in interest
rates would give rise to extension risk by extending the life of a mortgage- or
asset-backed security beyond the expected prepayment time,
typically reducing the security’s value, which is called extension risk. It
would also increase the inherent volatility of a Fund by increasing
the average life of the Fund’s portfolio securities.
The
value of some mortgage-backed and asset-backed securities in which a Fund
invests may be particularly sensitive to changes in prevailing
interest rates, and the ability of a Fund to successfully utilize these
instruments may depend in part upon the ability of Loomis Sayles
to forecast interest rates and other economic factors correctly. The risk of
non-payment is greater for mortgage-related securities that are
backed by loans
made to borrowers with weakened credit histories or with a lower capacity to
make timely payments on their loans,
but a
level of risk exists for all loans. Market factors adversely affecting mortgage
loan repayments may include a general economic downturn
or recession,
high unemployment, a general slowdown in the real estate market, a drop in the
market prices of real estate or an increase in interest
rates resulting in higher mortgage payments by holders of adjustable-rate
mortgages.
During periods of difficult economic conditions,
delinquencies and losses on commercial mortgage-backed investments in particular
generally increase, including as a result of the effects
of those conditions on commercial real estate markets, the ability of commercial
tenants to make loan payments, and the ability of a property
to attract and retain commercial tenants.
A
mortgage dollar roll involves the sale of a security by a Fund and its agreement
to repurchase the instrument at a specified time and price, and
may be considered a form of borrowing for some purposes. A Fund will designate
assets determined to be liquid in an amount sufficient to
meet its obligations under the transactions. A dollar roll involves potential
risks of loss that are different from those related to the securities
underlying the transactions. A Fund may be required to purchase securities at a
higher price than may otherwise be available on the open
market. Since the counterparty in the transaction is required to deliver a
similar, but not identical, security to a Fund, the security that
a
Fund is required to buy under the dollar roll may be worth less than an
identical security. There is no assurance that a Fund’s use of the cash
that it receives from a dollar roll will provide a return that exceeds borrowing
costs.
REITS
RISK
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). REITs are dependent upon management
skills, are not diversified and are subject to heavy cash flow dependency, risks
of default or prepayment by borrowers and self-liquidation.
REITs are also subject to the possibilities of failing to qualify for the
favorable tax treatment available to REITs under the Internal
Revenue Code of 1986,
as amended
(the “Code”), and failing to maintain their exemptions from registration under
the 1940 Act.
Furthermore,
the real estate industry is particularly sensitive to economic downturns.
Securities of companies in the real estate industry, including
REITs, are sensitive to factors such as changes in real estate values, property
taxes, interest rates, cash flow of underlying real estate assets,
occupancy rates, government regulations affecting zoning, land use and rents and
the management skill and creditworthiness of the issuer.
The
U.S. residential and commercial real estate markets may, in the future,
experience and have, in the past, experienced a decline in value,
with certain regions experiencing significant losses in property values.
Exposure to such real estate may adversely affect a REIT’s performance,
and therefore a Fund’s performance. Companies
in the real estate industry may also be subject to liabilities under
environmental
and hazardous waste laws. In addition, the value of a REIT is affected by
changes in the value of the properties owned by the REIT
or securing mortgage loans held by the REIT. A Fund will indirectly bear its
proportionate share of expenses, including management fees,
paid by each REIT in which it invests in addition to the expenses of the
Fund.
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 more widely-held securities.
A
Fund’s investment in a REIT may result in the Fund making distributions that
constitute a return of capital to Fund shareholders for U.S. federal
income tax purposes. In addition, distributions by a Fund from REITs will not
qualify for the corporate dividends-received deduction
or, generally, for treatment as qualified dividend income.
SMALL/MID-CAPITALIZATION
COMPANIES RISK
The
general risks associated with corporate income-producing securities are
particularly pronounced for securities issued by companies with smaller
market capitalizations. These companies may have limited product lines, markets
or financial resources or they may depend on a few key
employees. As a result, they may be subject to greater levels of credit and
market/issuer risk. Securities of smaller companies may trade less
frequently and in lesser volume than more widely-held securities and their
values may fluctuate more sharply than other securities. Further,
securities of smaller companies may perform differently in different cycles than
securities of larger companies. Companies with medium-sized
market capitalizations may have risks similar to those of smaller
companies.
TIPS
RISK
TIPS
are fixed-income securities whose principal value is periodically adjusted
according to the rate of inflation. The interest rate on TIPS is fixed
at issuance, but over the life of the bond this interest may be paid on an
increasing or decreasing principal value that has been adjusted for
inflation,
based upon an index intended to measure the rate of inflation. However, there
can be no assurance that the relevant index will accurately
measure the rate of inflation.
Although repayment of the original bond principal upon maturity is guaranteed,
the market value of TIPS
is not guaranteed, and will fluctuate.
As a result of these factors, there is a risk that the securities will not work
as intended.
management
Investment
Adviser
Loomis
Sayles, located at One Financial Center, Boston, Massachusetts 02111, serves as
adviser
to the Funds. Founded in 1926, Loomis Sayles
is one of the oldest investment advisory
firms
in the United States with over $335.2
billion in assets under management as of December
31, 2023.
Loomis Sayles is
well known for its professional
research staff. Loomis Sayles makes
investment decisions for each of
the
Funds.
The
aggregate advisory fees paid by the Funds during the fiscal year ended September
30, 2023,
as a percentage of each Fund’s average daily net
assets, were:
|
| |
|
Fund |
Aggregate
Advisory Fee |
|
Loomis
Sayles Fixed Income Fund |
0.50% |
|
Loomis
Sayles Global Bond Fund (after waiver) |
0.48% |
|
Loomis
Sayles Inflation Protected Securities Fund (after waiver) |
0.10% |
|
Loomis
Sayles Institutional High Income Fund |
0.58% |
|
Loomis
Sayles Small Cap Growth Fund |
0.75% |
|
Loomis
Sayles Small Cap Value Fund (after waiver) |
0.70% |
|
Loomis
Sayles Small/Mid Cap Growth Fund (after waiver) |
0.66% |
A
discussion of the factors considered by the Funds’ Board of Trustees in
approving the Funds’ investment advisory contracts is available in the
Funds’ annual reports for the fiscal year ended September 30,
2023.
The
Funds consider the series of Natixis Funds Trust I, Natixis Funds Trust II,
Natixis Funds Trust IV, Gateway Trust, Loomis Sayles Funds
I, Loomis Sayles Funds II, Natixis ETF Trust and Natixis ETF Trust II, all of
which are advised or subadvised by Natixis Advisors, Loomis
Sayles, AEW Capital Management, L.P., Gateway
Investment Advisers, LLC, Mirova US LLC, Harris Associates L.P. or Vaughan
Nelson
Investment Management, L.P. (collectively, the “Affiliated Investment
Managers”), to be part of the “same group of investment companies”
under Section 12(d)(1)(G) of the 1940 Act for the purchase of other investment
companies. The Affiliated Investment Managers
are all under common control.
Portfolio
Managers
The
following persons have had primary responsibility for the day-to-day management
of each indicated Fund’s portfolio since the dates stated
below. Associate portfolio managers are actively involved in formulating the
overall strategy for the funds they manage but are not the primary
decision-makers. Each portfolio manager has been employed by Loomis Sayles for
at least five years.
Mark
F. Burns, CFA®
has served as portfolio manager of the Loomis Sayles Small Cap Growth Fund since
2005 and the Loomis Sayles Small/Mid
Cap Growth Fund since its inception in 2015. Mr. Burns,
Co-Portfolio
Manager at
Loomis Sayles, began his investment career in
1993 and joined Loomis Sayles in 1999. Mr. Burns earned
a B.A. from Colby College and an
M.B.A. from Cornell University.
He holds the
designation of Chartered Financial Analyst®
and has over 27
years of investment experience.
Matthew
J. Eagan, CFA®
has served as portfolio manager of the Loomis Sayles Fixed
Income Fund
and the Loomis Sayles Institutional High
Income Fund since 2012. He served as an associate portfolio manager of the
Loomis Sayles Fixed
Income Fund and
the Loomis Sayles Institutional
High Income Fund from February 2007 to February 2012. Mr. Eagan,
Portfolio
Manager and Co-Head of the Full Discretion Team,
and Director at
Loomis Sayles, began his investment career in 1989 and joined Loomis Sayles in
1997. Mr.
Eagan
earned a B.A. from
Northeastern University and an M.B.A. from Boston University.
He
holds the designation of Chartered Financial Analyst®
and has over
33
years of investment experience.
Joseph
R. Gatz, CFA®
has served as portfolio manager of the Loomis Sayles Small Cap Value Fund since
2000. Mr. Gatz, Portfolio
Manager
at
Loomis Sayles, began his investment career in 1985 and joined Loomis Sayles in
1999. Mr. Gatz earned
a B.A. from Michigan State
University and an M.B.A. from Indiana University.
He holds the designation of Chartered Financial Analyst®
and has over 38
years of investment
experience.
Elaine
Kan, CFA®
has served as a portfolio manager of the Loomis Sayles Inflation Protected
Securities Fund since 2012. Ms. Kan, Portfolio
Manager and Rate and Currency Strategist for the Fixed Income Group
at
Loomis Sayles, began her investment career in 1997 and
joined Loomis Sayles in 2011. Prior to joining Loomis Sayles, she was a
portfolio analyst at Convexity Capital Management. Previously,
she
was a fixed income analyst at Harvard Management Company. Ms. Kan earned a B.S.
in engineering, a B.S. in finance and an M.S. in electrical
engineering from the Massachusetts Institute of Technology.
She
holds the designation of Chartered Financial Analyst®
and has over
23
years of investment experience.
Kevin
P. Kearns
has served as a portfolio manager of the Loomis Sayles Inflation Protected
Securities Fund since 2012. Mr. Kearns, Portfolio
Manager and Head of the Alpha Strategies group at
Loomis Sayles, began his investment career in 1986 and joined Loomis Sayles
in
2007. Prior to joining Loomis Sayles, he was the director of derivatives,
quantitative analysis and risk management at Boldwater Capital Management.
Mr. Kearns earned a B.S. from Bridgewater State College and an M.B.A. from
Bryant College
and
has over 37
years of investment
experience.
Brian
P. Kennedy
has served as portfolio manager of the Loomis Sayles Fixed
Income Fund since 2016
and the Loomis Sayles Institutional High
Income Fund since 2021. Mr. Kennedy is a Co-Portfolio
Manager on the Full Discretion Team at
Loomis Sayles. He began his investment
industry career in 1990 and joined Loomis Sayles in 1994 as a structured finance
and government bond trader, then a credit trader
in 2001 and a product manager in 2009. Mr.
Kennedy
earned a B.S. from Providence College and an M.B.A. from Babson College
and
has over 33
years of investment experience.
David
W. Rolley, CFA®
has served as portfolio manager of the Loomis Sayles Global Bond Fund since
2000. Mr. Rolley, Portfolio
Manager
and Co-Head of the Global Fixed Income Team at
Loomis Sayles, began his investment career in 1980 and joined Loomis Sayles
in
1994. Mr. Rolley earned
a B.A. from Occidental College
and
studied post-graduate
economics at the University of Pennsylvania.
He holds
the designation of Chartered Financial Analyst®
and has over 43
years of investment experience.
Jeffrey
Schwartz, CFA®
has served as a portfolio manager of the Loomis Sayles Small Cap Value Fund
since 2012. Mr. Schwartz, Portfolio
Manager
at
Loomis Sayles, began his investment career in 1992 and joined Loomis Sayles in
2012. He previously served as Vice President and
Senior Portfolio Manager of Palisade Capital Management from 2004 until 2012.
Mr. Schwartz earned
a B.A. from the State University
of New York, Binghamton and an M.B.A. from the University of
Michigan.
He holds the designation of Chartered Financial Analyst®
and has over 31
years of investment experience.
Lynda
L. Schweitzer, CFA®
has served as portfolio manager of the Loomis Sayles Global Bond Fund since
2007. Ms. Schweitzer, Portfolio
Manager
and Co-Head of the Global Fixed Income Team at
Loomis Sayles, began her investment career in 1986 and joined Loomis Sayles
in
2001. Ms. Schweitzer earned
a B.A. from the University of Rochester
and
an M.B.A. from Boston University.
She holds the designation of
Chartered Financial Analyst®
and has over 37
years of investment experience.
Scott
M. Service, CFA®
has served as portfolio manager of the Loomis Sayles Global Bond Fund since
2014. Mr. Service, Portfolio
Manager
and Co-Head of the Global Fixed Income Team
at Loomis Sayles, joined Loomis Sayles in 1995. Mr. Service
earned
a B.S. from Babson
College and an M.B.A. from Bentley College.
He holds the designation of Chartered Financial Analyst®
and has over 32
years of investment
experience.
Peter
S. Sheehan
has served as a portfolio manager of the Loomis Sayles Institutional High Income
Fund since 2023. Mr. Sheehan, Co-Portfolio
Manager on the Full Discretion Team at Loomis Sayles, began his investment
career in 2006 and joined Loomis Sayles in 2012. Mr.
Sheehan received a B.A. from Vanderbilt University and an M.B.A. from the
Carroll School of Management at Boston College and has over
16 years of investment experience.
John
J. Slavik, CFA®
has served as portfolio manager of the Loomis Sayles Small Cap Growth Fund since
2005 and the Loomis Sayles Small/Mid
Cap Growth Fund since its inception in 2015. Mr. Slavik,
Co-Portfolio
Manager at
Loomis Sayles, began his investment career in
1991 and joined Loomis Sayles in 2005. Mr. Slavik earned
a B.A. from the University of Connecticut. He holds
the designation of Chartered
Financial Analyst®
and has over 32
years of investment experience.
Todd
P. Vandam, CFA®
has served as portfolio manager of the Loomis Sayles Institutional High Income
Fund since 2021. Mr. Vandam, Co-Portfolio
Manager on the Full Discretion Team at
Loomis Sayles, began his investment career and joined Loomis Sayles in 1994. Mr.
Vandam
received a B.A. from Brown University. He holds the designation of Chartered
Financial Analyst®
and has 29
years of investment experience.
Please
see the SAI for information regarding portfolio manager compensation, other
accounts under management by the portfolio managers and the portfolio
managers’ ownership of securities in the Funds.
Distribution
Plans and Administrative Services and Other Fees
For
the Retail and Admin Classes of the Funds, the Funds offering those classes have
adopted distribution plans under Rule 12b-1 of the 1940
Act that allow the Funds to pay fees for the sale and distribution of Retail and
Admin Class shares and for services provided to
shareholders.
This 12b-1 fee currently is 0.25% of a Fund’s average daily net assets
attributable to the shares of a particular class. Because distribution
and service (12b-1) fees are paid out of the Funds’ assets on an ongoing basis,
over time these fees will increase the cost of your investment
and may cost you more than paying other types of sales charges and service
fees.
Admin
Class shares of Loomis Sayles Small
Cap Value Fund are offered exclusively through intermediaries, who will be the
record owners of the
shares. Admin Class shares may pay an administrative services fee at an annual
rate of up to 0.25% of the average daily net assets attributable
to Admin Class shares to Natixis Distribution, LLC
(“Natixis Distribution” or the “Distributor”) and/or securities dealers or
financial
intermediaries for providing personal service and account maintenance for their
customers who hold these shares.
The
Distributor, on behalf of Loomis Sayles, may pay certain broker-dealers and
financial intermediaries whose customers are existing shareholders
of the Funds a continuing fee based on the value of Fund shares held for those
customers’ accounts, although this continuing fee
is paid by the Distributor, on behalf of Loomis Sayles, out of Loomis Sayles’
own resources and is not assessed against the Fund.
The
Distributor, Loomis Sayles and their respective affiliates may, out of their own
resources, make payments in addition to the payments described
in this section to dealers and other financial intermediaries that satisfy
certain criteria established from time to time by the Distributor.
Payments may vary based on sales, the amount of assets a dealer’s or
intermediary’s clients have invested in the Funds, and other factors.
These payments may also take the form of sponsorship of seminars or
informational meetings or payments for attendance by persons associated
with a dealer or intermediary at informational meetings. The Distributor and its
affiliates may also make payments for recordkeeping
and other transfer agency-related services to dealers and intermediaries that
sell Fund shares; Class N shares do not bear such expenses.
The
Distributor, on behalf of Loomis Sayles, may pay certain broker-dealers and
financial intermediaries whose customers are existing Institutional
Class shareholders of the Funds a continuing fee at an annual rate of up to
0.40% of the value of Fund shares held for these customers’
accounts, although this continuing fee is paid by the Distributor, on behalf of
Loomis Sayles, out of Loomis Sayles’ own resources
and is not assessed against the Fund.
The
Distributor may pay fees to third party broker-dealer firms for services
provided by those firms. The fees vary by firm and are generally based
on asset levels. Fees are paid by the Distributor (as distributor of the Funds)
on behalf of Loomis Sayles, out of Loomis Sayles’ own resources.
The
payments described in this section, which may be significant to the dealers and
the financial intermediaries, may create an incentive for a
dealer or financial intermediary or their representatives to recommend or sell
shares of a particular Fund or share class over other mutual funds
or share classes. Additionally, these payments may result in the Funds receiving
certain marketing or service advantages that are not generally
available to mutual funds that do not make such payments, including placement on
a sales list, including a preferred or select sales list,
or in other sales programs. These
payments may create potential conflicts of interest between an investor and a
dealer or other financial intermediary
who is recommending a particular mutual fund over other mutual funds. Before
investing, you should consult with your financial
representative and review carefully any disclosure by the dealer or other
financial intermediary as to the
services it provides, what
monies
it receives from mutual fund advisers and distributors, as well as how your
financial representative is compensated. Please
see the SAI for
additional information about payments made by the Distributor and its affiliates
to dealers and other financial intermediaries. Please also contact
your dealer or financial intermediary for details about payments it may
receive.
Additional
Information
The
Funds enter into contractual arrangements with various parties, including, among
others, the Adviser, the Distributor and the Funds’ custodian
and transfer agent, who provide services to the Funds. Shareholders are not
parties to, or intended to be third-party beneficiaries of,
any of those contractual arrangements, and those contractual arrangements are
not intended to create in any individual shareholder or group
of shareholders any right to enforce such arrangements against the service
providers or to seek any remedy thereunder against the service
providers, either directly or on behalf of the Funds.
This
Prospectus provides information concerning the Funds that you should consider in
determining whether to purchase shares of the Funds.
None of this Prospectus, the SAI or any contract that is an exhibit to the
Funds’ registration statement, is intended to, nor does it, give
rise to an agreement or contract between the Funds and any investor, or give
rise to any contract or other rights in any individual shareholder,
group of shareholders or other person other than any rights conferred explicitly
by applicable federal or state securities laws that may
not be waived.
general
information
Choosing
a Share Class
Each
class has different fees and expenses, which allows you to choose the class that
best meets your needs. Which class is best for you depends
upon a number of factors, including the size of your investment. For information
about the investment minimums for each class, see
the section “Purchase and Sale of Fund Shares” in each Fund Summary. Certain
share classes and certain shareholder features may not be available
to you if you hold your shares through a financial intermediary. Your financial
representative can help you decide which class of shares
is most appropriate for you. The Funds may engage financial intermediaries to
receive purchase, exchange and sell orders on their behalf.
Accounts established directly with the Funds will be serviced by the Funds’
transfer agent. The Funds, the Funds’ transfer agent and the
Distributor do not provide investment advice.
For
information about a Fund’s expenses, see the section “Fund Fees & Expenses”
in each Fund Summary.
How
Fund Shares Are Priced
NAV
is the price of one share of a Fund without a sales charge, and is calculated
each business day using this formula:
The
policies
and procedures used
to determine the NAV of Fund shares are
summarized below:
|
• |
A
share’s NAV is determined at the close of regular trading on the New York
Stock Exchange (“NYSE”) on the days the NYSE is open for
trading. This is normally 4:00 p.m., Eastern time. A Fund’s shares will
not be priced on the days on which the NYSE is closed for trading.
In addition, a Fund’s shares will not be priced on the holidays listed in
the SAI. See the section “Net Asset Value” in the SAI for more
details. |
|
• |
The
price you pay for purchasing, redeeming or exchanging a share will be
based upon the NAV next calculated after your order is received
by the transfer agent, SS&C
Global Investor & Distribution Solutions, Inc. (formerly, DST
Asset Manager Solutions, Inc.),
(rather
than when the order arrives at the P.O. box) “in good order” (meaning that
the order is complete and contains all necessary information).
See the Section “How to Purchase Shares,” which provides additional
information regarding who can receive a purchase order. |
|
• |
Requests
received by the Funds after the NYSE closes will be processed based upon
the NAV determined at the close of regular trading on the
next day that the NYSE is open. If the transfer agent receives the order
in good order prior to the NYSE market close (normally 4:00 p.m.,
Eastern time), the shareholder will receive that day’s NAV. Under limited
circumstances, the Distributor may enter into contractual agreements
pursuant to which orders received by your investment dealer before a Fund
determines its NAV and transmitted to the transfer
agent prior to market open on the next business day are processed at the
NAV determined on the day the order was received by your
investment dealer. Please
contact your investment dealer to determine whether it has entered into
such a contractual agreement.
If your investment dealer has not entered into such a contractual
agreement, your order will be processed at the NAV next
determined after your investment dealer submits the order to a
Fund. |
|
• |
If
a Fund invests in foreign securities, it may have NAV changes on days when
you cannot buy or sell its shares. |
Generally,
during times of substantial economic or market change, it may be difficult to
place your order by phone. During these times, you may
send your order by mail as described in the sections “How to Purchase Shares”
and “How to Redeem Shares.”
Fund
securities and other investments for which market quotations are readily
available, as outlined in the Funds’ policies and procedures, are
valued at market value. The Funds may use third-party
pricing services
to obtain market quotations and other valuation information, such
as evaluated bids.
Generally,
Fund securities and other investments are valued as follows:
|
• |
Equity
securities (including shares of closed-end investment companies and
exchange-traded funds (“ETFs”)), exchange traded notes,
rights, and warrants
— listed equity securities are valued at the last sale price quoted on the
exchange where they are traded most extensively
or, if there is no reported sale during the day, the closing bid quotation
as reported by a
third-party
pricing service. Securities traded
on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ
Capital Market are valued at the NASDAQ Official
Closing Price (“NOCP”), or if lacking an NOCP, at the most recent bid
quotations on the applicable NASDAQ Market. Unlisted
equity securities (except unlisted preferred equity securities discussed
below) are valued at the last sale price quoted in the market
|
|
|
where
they are traded most extensively or, if there is no reported sale during
the day, the closing bid quotation as reported by
a
third-party
pricing
service. If there is no sale price or closing bid quotation available,
unlisted equity securities will be valued using evaluated bids
furnished
by a
third-party
pricing service, if available. In some foreign markets, an official close
price and a last sale price may be available from
the foreign exchange or market. In those cases, the official close price
is used. Valuations based on information from foreign markets may
be subject to the Funds’ fair value policies described below. If a right
is not traded on any exchange, its value is based on the market
value
of the underlying security, less the cost to subscribe to the underlying
security (e.g., to exercise the right), adjusted for the subscription
ratio. If a warrant is not traded on any exchange, a price is obtained
from a broker-dealer. |
|
• |
Debt
securities and unlisted preferred equity securities —
evaluated bids furnished to a Fund by a
third-party
pricing service using market
information, transactions for comparable securities and various
relationships between securities, if available, or bid prices obtained
from
broker-dealers. |
|
• |
Senior
Loans —
bid prices supplied by a
third-party
pricing service, if available, or bid prices obtained from
broker-dealers. |
|
• |
Bilateral
Swaps —
bilateral credit default swaps are valued based on mid prices (between the
bid price and the ask price) supplied by a
third-party
pricing service. Bilateral interest rate swaps and bilateral standardized
commodity and equity index total return swaps are valued
based on prices supplied by a
third-party
pricing service. If prices from a
third-party
pricing service are not available, prices from a broker-dealer
may be used. |
|
• |
Centrally
Cleared Swaps —
settlement prices of the clearing house on which the contracts were traded
or prices obtained from broker-dealers. |
|
• |
Options
—
domestic exchange-traded index and single name equity options contracts
(including options on ETFs) are valued at the mean
of the National Best Bid and Offer quotations as determined by the Options
Price Reporting Authority. Foreign exchange-traded single
name equity options contracts are valued at the most recent settlement
price. Options contracts on foreign indices are priced at the most
recent settlement price. Options on futures contracts are valued using the
current settlement price on the exchange on which, over time,
they are traded most extensively. Other exchange-traded options are valued
at the average of the closing bid and ask quotations on the
exchange on which, over time, they are traded most extensively. OTC
currency options and swaptions are valued at mid prices (between
the bid price
and
the ask price) supplied by a
third-party
pricing service, if available. Other OTC options contracts (including
currency
options and swaptions not priced through a
third-party
pricing service) are valued based on prices obtained from broker-dealers.
Valuations
based on information from foreign markets may be subject to the Funds’
fair value policies as described below. |
|
• |
Futures
—
most recent settlement price on the exchange on which the Adviser believes
that, over time, they are traded most extensively. Valuations
based on information from foreign markets may be subject to the Funds’
fair value policies as described below. |
|
• |
Forward
Foreign Currency Contracts —
interpolated rates determined based on information provided by
a
third-party
pricing service. |
Foreign
denominated assets and liabilities are translated into U.S. dollars based upon
foreign exchange rates supplied by a
third-party
pricing service.
Fund securities and other investments for which market quotations are not
readily available are valued at fair value as determined in good
faith by the Adviser.
A Fund may also value securities and other investments at fair value in other
circumstances such as when extraordinary
events occur after the close of a foreign market but prior to the close of the
NYSE. This may include situations relating to a single
issuer (such as a declaration of bankruptcy or a delisting of the issuer’s
security from the primary market on which it has traded) as well
as events affecting the securities markets in general (such as market
disruptions or closings and significant fluctuations in U.S. and/or foreign
markets). When fair valuing its securities or other investments, each Fund may,
among other things, use modeling tools or other processes
that may take into account factors such as securities or other market activity
and/or significant events that occur after the close of the
foreign market and before the time a Fund’s NAV is calculated. Fair value
pricing may require subjective determinations about the value of
a security, and fair values used to determine a Fund’s NAV may differ from
quoted or published prices, or from prices that are used by others,
for the same securities. In addition, the use of fair value pricing may not
always result in adjustments to the prices of securities held by
a Fund. Valuations for securities traded in the OTC market may be based on
factors such as market information, transactions for comparable
securities, various relationships between securities or bid prices obtained from
broker-dealers. Evaluated prices from a
third-party
pricing
service may require subjective determinations and may be different than actual
market prices or prices provided by other pricing services.
As
of the date of this prospectus, the Adviser serves
as the Funds‘
valuation designee for purposes of
compliance with Rule 2a-5 under
the 1940 Act.
Trading
in some of the portfolio securities or other investments of some of the Funds
takes place in various markets outside the United States
on days and at times other than when the NYSE is open for trading. Therefore,
the calculation of these Funds’ NAV does not take place
at the same time as the prices of many of its portfolio securities or other
investments are determined, and the value of these Funds’ portfolios
may change on days when these Funds are not open for business and their shares
may not be purchased or redeemed.
Self-Servicing
Your Account
(Excludes
Class N shares)
Shareholders
that hold their accounts directly with Funds may use the following self-service
options. Shareholders that hold Fund shares through
a financial intermediary should consult their financial intermediary regarding
any self-service options that they may offer.
Loomis
Sayles Funds Website.
You can access our website at www.loomissayles.com to perform transactions
(purchases, redemptions or exchanges),
review your account information and Fund net asset values, change your address,
order duplicate statements or tax forms or obtain
a Prospectus, an SAI, an application or periodic reports (certain restrictions
may apply).
Loomis
Sayles Automated Voice Response System.
You have access to your account 24 hours a day by calling Loomis Sayles
Automated Voice
Response System at 800-633-3330.
You
may review your account balance and Fund net asset values, order duplicate
statements, order
duplicate tax forms, obtain distribution and performance
information.
How
To Purchase Shares
Each
Fund is generally available for purchase in the United States, Puerto Rico, Guam
and the U.S. Virgin Islands. The Funds will only accept
investments from U.S. citizens with a U.S. address (including an APO or FPO
address) or resident aliens with a U.S. address (including
an APO or FPO address) and a U.S. taxpayer identification number. U.S. citizens
living abroad are not allowed to purchase shares
in the Funds.
Admin
Class shares are offered exclusively through intermediaries (who will be the
record owner of such shares), are intended primarily for Certain
Retirement Plans held in an omnibus fashion, and are not available for purchase
by individual investors. Class N shares are not eligible
to be purchased or exchanged through the website or through the Loomis Sayles
Automated Voice Response System.
Each
Fund sells its shares at the NAV next calculated after the Fund receives a
properly completed investment order. The Fund generally must
receive your properly completed order before the close of regular trading on the
NYSE for your shares to be bought or sold at the Fund’s
NAV on that day.
All
purchases made by check should be in U.S. dollars and made payable to Loomis
Sayles Funds. Third party checks, travelers checks, starter
checks and credit card convenience checks will not be accepted, except that
third party checks under $10,000 may be accepted. You may
return an uncashed redemption check from your account to be repurchased back
into your account. Upon redemption of an investment
by check or by periodic account investment, redemption proceeds may be withheld
until the check has cleared or the shares have been
in your account for 10 days.
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. See the section “Restrictions
on Buying, Selling and Exchanging Shares.”
You
can buy shares of each Fund in several ways:
The
Funds may engage financial intermediaries to receive purchase, exchange and sell
orders on their behalf. Accounts established directly with
the Funds will be serviced by the Funds’ transfer agent. The Funds, the Funds’
transfer agent and the Distributor do not provide investment
advice.
Through
a financial adviser (Certain restrictions may apply).
Your financial adviser will be responsible for furnishing all necessary
documents
to Loomis Sayles Funds. Your financial adviser may charge you for these
services. Your financial adviser must receive your request
in proper form before the close of regular trading on the NYSE for you to
receive that day’s NAV.
Through
a broker-dealer (Certain restrictions may apply).
You may purchase shares of the Funds through a broker-dealer that has been
approved
by the Distributor. Your broker-dealer may charge you a fee for effecting such
transactions. Your broker-dealer must receive your request
in proper form before the close of regular trading on the NYSE for you to
receive that day’s NAV.
Directly
from the Fund.
Loomis Sayles Funds’ transfer agent must receive your purchase request in proper
form before the close of regular trading
on the NYSE in order for you to receive that day’s NAV.
You
can purchase shares directly from each Fund in several ways:
By
mail.
You can buy shares of each Fund by submitting a completed application form,
which is available online at www.loomissayles.com or
by calling Loomis Sayles Funds at 800-633-3330, along with a check payable to
Loomis Sayles Funds for the amount of your purchase to:
|
|
| |
|
Regular
Mail |
Overnight
Mail |
|
|
Loomis
Sayles Funds
P.O.
Box 219594
Kansas
City, MO 64121-9594 |
Loomis
Sayles Funds
330
West 9th Street
Kansas
City, MO 64105-1514 |
After
your account has been established, you may send subsequent investments directly
to Loomis Sayles Funds at the above addresses. Please
include either the investment slip from your account statement or a letter
specifying the Fund name, your account number and your name,
address and telephone number.
By
wire.
You also may wire subsequent investments. Call Loomis Sayles Funds at
800-633-3330 to obtain wire transfer instructions. At the time
of the wire transfer, you will need to include the Fund name, your class of
shares, your account number and the registered account owner
name(s). Your bank may charge you for such a transfer.
By
telephone.
You can make subsequent investments by calling Loomis Sayles Funds at
800-633-3330 if you have already established electronic
privileges.
By
exchange.
You may purchase shares of a Fund by exchange of shares of the same class of
another Fund by sending a signed letter of instruction
to Loomis Sayles Funds, by calling Loomis Sayles Funds at 800-633-3330 or by
accessing your account online at www.loomissayles.com.
Through
Automated Clearing House (“ACH”).
Before you can purchase shares of Loomis Sayles Funds through ACH, you must
provide specific
instructions to Loomis Sayles Funds in writing (see STAMP2000 Medallion
Signature Guarantee below). You may purchase shares of
each
Fund through ACH by either calling Loomis Sayles Funds at 800-633-3330 or by
accessing your account online at www.loomissayles.com.
By
internet.
If you have established a user
name and password
and you have established the electronic transfer privilege, you can make
subsequent
investments through your online account at www.loomissayles.com. If you have not
established a user
name and password,
but you
have established the electronic transfer privilege, go to www.loomissayles.com,
click on “Client Login,” under Mutual Funds Login, click
on “Login to Mutual Funds,” click on “Establish User ID,” and follow the
instructions.
Through
systematic investing.
You
can make regular investments of $50 ($50,000
for the Loomis Sayles Fixed Income Fund
and
Loomis Sayles Institutional High Income Fund)
or more per month through automatic deductions from your bank checking or
savings account. If you did not establish the electronic transfer
privilege on your application, you may add the privilege by obtaining an Account
Options Form through your financial adviser, by calling
Loomis Sayles Funds at 800-633-3330 or by visiting www.loomissayles.com. A
medallion signature guarantee may be required to add
this option.
Through
liquid securities.
Subject to the approval of a Fund, an investor may purchase Institutional Class
shares of a Fund with liquid securities
and other assets that are eligible for purchase by the Fund (consistent with the
Fund’s investment policies and restrictions) and that have
a value that is readily ascertainable in accordance with the Fund’s valuation
policies. These transactions will be effected only if Loomis Sayles
deems the security to be an appropriate investment for the Fund. Assets
purchased by a Fund in such a transaction will be valued in accordance
with procedures adopted by the Fund. The Funds reserve the right to amend or
terminate this practice at any time.
For
information about Minimum Investment Requirements, see the section “Purchase and
Sale of Fund Shares” in each Fund’s Summary.
Minimum
Balance Policy.
In order to address the relatively higher costs of servicing smaller fund
positions, on an annual basis the Fund may
close an account and send the account holder the proceeds if the account falls
below $500. The valuation of account balances for this purpose
and the liquidation itself generally occur during October of each calendar year,
although they may occur at another date in the year.
Certain
accounts such as those using the Loomis Sayles Funds’ prototype document
including IRAs, accounts associated with fee-based programs
(such as wrap programs), trust networked accounts, accounts initially funded
within six months of the liquidation date, certain retirement
accounts, are excluded from the liquidation.
Due
to operational limitations, the Funds’ ability to apply the Minimum Balance
Policy to shareholder accounts held through an intermediary
in an omnibus fashion may be limited. The Funds may work with these
intermediaries to enforce the Minimum Balance Policy
on these accounts as can best be applied per the timing and the constraints of
the intermediaries’ account record keeping systems. For information
about the policy for Class N shares, see the section “Purchase and Sale of Fund
Shares” in each Fund’s Summary.
Accounts
held through certain financial intermediaries that have entered into special
arrangements with the Distributor may be subject to a different
minimum balance policy than the one described above. Please see Appendix A to
the Prospectus for more information regarding
the
minimum balance policies of specific financial intermediaries, which may differ
from those disclosed elsewhere in the Prospectus or in the
SAI. Consult your financial intermediary for additional information regarding
the minimum balance policy applicable to your investment.
Certain
Retirement Plans.
Loomis Sayles Funds defines “Certain Retirement Plans” as it relates to share
class eligibility and account minimums
as follows:
Certain
Retirement Plans include
401(k),
401(a),
457,
(including profit-sharing,
money purchase pension plans), 403(b),
403(b)(7),
defined benefit
plans, non-qualified deferred compensation plans, Taft-Hartley
multi-employer plans,
and retiree health benefit plans. Accounts
must
be plan-level
omnibus accounts to qualify.
Certain
Retirement Plans do
not include individual retirement accounts
such as an
IRA,
SIMPLE
IRA,
SEP
IRA,
SARSEP
IRA,
and
Roth IRA.
Any account
registered in the name of a participant does
not qualify.
Information
about purchasing shares of the Funds is available at the Funds’ website at
www.loomissayles.com.
How
To Redeem Shares
You
can redeem shares of each Fund directly from the Fund on any day on which the
NYSE is open for business. The information below details
the various ways you can redeem shares of a Fund. Except as noted below and in
the “Selling Restrictions” section of this Prospectus, each
Fund typically expects to pay out redemption proceeds on the next business day
after a redemption request is received in good order. The
information below also notes certain fees that may be charged by a Fund, its
agents, your bank or your financial representative in connection
to your redemption request. The Funds do not currently impose any redemption
charge. The Funds’ Board of Trustees reserves the
right to impose additional charges at any time.
Each
Fund may fund a redemption request from various sources, including sales of
portfolio securities, holdings of cash or cash equivalents, and
borrowings from banks (including overdrafts from the Fund’s custodian bank
and/or under the Fund’s line of credit, which is shared across
certain other Natixis Funds and Loomis Sayles Funds). Each Fund typically will
redeem shares for cash; however, as described in more detail
below, each Fund reserves the right to pay the redemption price wholly or partly
in-kind (i.e., in portfolio securities rather than cash), if
the Fund’s Adviser determines it to be advisable and in the best interest of
shareholders. If a shareholder receives a distribution in-kind, the shareholder
will bear the market risk associated with the distributed securities and would
incur brokerage or other charges in converting the securities
to cash.
Because
large redemptions are likely to require liquidation by a 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 as permitted by the SEC.
Redemptions
totaling more than $100,000 from a single fund/account cannot be processed on
the same day unless the proceeds of the redemption
are sent via pre-established banking information on the account. Please see the
section “STAMP2000 Medallion Signature Guarantee”
for details.
Generally,
for expedited payment of redemption proceeds,
a transaction fee of $5.50 for wire transfers, $50 for international wire
transfers or $36.00
for overnight delivery will be charged. These fees are subject to
change.
Redemptions
through your financial adviser.
Your financial adviser must receive your request in proper form before the close
of regular trading
on the NYSE for you to receive that day’s NAV. Your financial adviser will be
responsible for furnishing all necessary documents to Loomis
Sayles Funds on a timely basis and may charge you for his or her
services.
Redemptions
through your broker-dealer.
You may redeem shares of the Fund through a broker-dealer that has been approved
by the Distributor,
which can be contacted at 888 Boylston Street, Suite 800, Boston, MA 02199-8197.
Your broker-dealer may charge you a fee for
effecting such transaction. Your broker-dealer must receive your request in
proper form before the close of regular trading on the NYSE for
you to receive that day’s NAV. Your redemptions generally will be wired to your
broker-dealer on the first business day after your request is
received in good order.
Redemptions
directly to the Funds.
Loomis Sayles Funds’ transfer agent must receive your redemption request in
proper form before the close
of regular trading on the NYSE in order for you to receive that day’s NAV. Your
redemptions generally will be sent to you on the first business
day after your request is received in good order, although it may take
longer.
You
may make redemptions directly from each Fund in several ways:
By
mail.
Send a signed letter of instruction that includes the name of the Fund, the
exact name(s) in which the shares are registered, your
address,
telephone number, account number and the number of shares or dollar amount to be
redeemed to the following address:
|
|
| |
|
Regular
Mail |
Overnight
Mail |
|
|
Loomis
Sayles Funds
P.O.
Box 219594
Kansas
City, MO 64121-9594 |
Loomis
Sayles Funds
330
West 9th Street
Kansas
City, MO 64105-1514 |
All
owners of 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).
By
exchange.
You may sell some or all of your shares of a Fund and use the proceeds to buy
shares of the same class of another Loomis Sayles
Fund by sending a letter of instruction to Loomis Sayles Funds, calling Loomis
Sayles Funds at 800-633-3330 or exchanging online at
www.loomissayles.com.
By
internet.
If you have established a user
name and password and
the electronic transfer privilege, you can redeem shares through your
online
account at www.loomissayles.com. If you have not established a
user
name and password,
but you have established the electronic transfer
privilege, go to www.loomissayles.com, click on “Client Login,” under Mutual
Funds Login, click on “Login to Mutual Funds,” click
on “Register,” and follow the instructions (certain restrictions may
apply).
By
telephone.
You may redeem shares by calling Loomis Sayles Funds at 800-633-3330. Proceeds
from telephone redemption requests (less any
applicable fees) can be wired to your bank account, sent electronically by ACH
to your bank account or sent by check in the name of the
registered owner(s) to the address of record. A wire fee will be deducted from
your proceeds. Your bank may charge you a fee to receive the
wire.
The
telephone redemption privilege may be modified or terminated by the Funds
without notice.
You
may redeem by telephone to have a check sent to the address of record for the
maximum amount of $100,000 per day from a single fund/account.
For your protection, telephone or internet redemption requests will not be
permitted if Loomis Sayles Funds has been notified
of an address change or bank account information change for your account within
the preceding 30 days. If you prefer, you can decline
telephone redemption and transfer privileges by calling Loomis Sayles Funds at
800-633-3330.
Systematic
Withdrawal Plan.
If the value of your account is $10,000 or more, you can have periodic
redemptions automatically paid to you
or to someone you designate. Please call 800-633-3330 for more information or to
set up a systematic withdrawal plan or visit www.loomissayles.com
to obtain an Account Options Form.
In-Kind.
Shares normally will be redeemed for cash upon receipt of a redemption request
in good order, although each Fund reserves the right
to pay the redemption price wholly or partly in-kind if the Fund’s Adviser
determines it to be advisable and in the best interest of shareholders.
For example, a Fund may pay a redemption in-kind under stressed market
conditions or if the redemption amount is large.
You
may also request an in-kind redemption of your shares by calling Loomis Sayles
Funds at 800-633-3330. In-kind redemptions typically take
several weeks to effectuate following a redemption request given the operational
steps necessary to coordinate with the redeeming shareholder’s
custodian. Typically, the redemption date is mutually-agreed upon by the Fund
and the redeeming shareholder. A Fund is not required
to pay a redemption in-kind even if requested and may in its discretion pay the
redemption proceeds in cash.
Redemptions
in-kind will generally, but not necessarily, result in a pro rata distribution
of each security held in a Fund’s portfolio. If a shareholder
receives a distribution in-kind, the shareholder will bear the market risk
associated with the distributed securities and would incur
brokerage or other charges in converting the securities to cash.
By
wire.
Before Loomis Sayles Funds can wire redemption proceeds (less any applicable
fees) to your bank account, you must provide specific
wire instructions to Loomis Sayles Funds in writing (see “STAMP2000 Medallion
Signature Guarantee” below). A wire fee will be deducted
from the proceeds of each wire.
Your bank may charge you a fee to receive the wire.
By
ACH.
Before Loomis Sayles Funds can send redemptions through ACH, you must provide
specific wiring instructions to Loomis Sayles Funds
in writing (see “STAMP2000 Medallion Signature Guarantee” below). For ACH
redemptions, proceeds will generally arrive at your bank
within three business days.
STAMP2000
Medallion Signature Guarantee.
You must have your signature guaranteed by a bank, broker-dealer or other
financial institution
that can issue a STAMP2000 Medallion Signature Guarantee for the following types
of redemptions:
|
• |
If
you are selling more than $100,000 per day from a single fund/account and
you are requesting the proceeds by check (this does not apply
to IRA transfer of assets to new
custodian). |
|
• |
If
you are requesting that the proceeds check (of any amount) be made out to
someone other than the registered owner(s) or sent to an address
other than the address of record. |
|
• |
If
the account registration or bank account information has changed within
the past 30 days. |
|
• |
If
you are instructing us to send the proceeds by check, wire or ACH to a
bank not already active on the fund
account. |
The
Funds will only accept STAMP2000 Medallion Signature Guarantees bearing the
STAMP2000 Medallion imprint. The surety amount of
the STAMP2000 medallion imprint must meet or exceed the amount on the request.
Please note that a notary public cannot provide a STAMP2000
Medallion Signature Guarantee. This signature guarantee requirement may be
waived by Loomis Sayles Funds in certain cases.
Exchanging
or Converting Shares
In
general, you may exchange shares of each Fund for shares of the same class of
another Loomis Sayles Fund that offers such class of shares (see
the sections “How to Purchase Shares” and “How to Redeem Shares”) subject to
restrictions noted below. When exchanging into a fund
that has the same investment minimums the exchange must be for at least the
minimum to open an account or the total NAV of your account,
whichever is less. When exchanging into a fund that has a higher investment
minimum, the exchange must be for at least the minimum
to open an account. Once the fund minimum is met, exchanges under the Automatic
Exchange Plan must be made for at least $50.00.
All exchanges are subject to the eligibility requirements of the fund into which
you are exchanging and any other limits on sales of or
exchanges into that fund. The exchange privilege may be exercised only in those
states where shares of such funds may be legally sold. For U.S.
federal income tax purposes, an exchange of Fund shares for shares of another
fund is generally treated as a sale on which gain or loss may
be recognized. Subject to the applicable rules of the SEC, the Board of Trustees
reserves the right to modify the exchange privilege at any
time. Before requesting an exchange into any other fund, please read its
Prospectus carefully. You may be unable to hold your shares through
the same financial intermediary if you engage in certain share exchanges. You
should contact your financial intermediary for further details.
Please refer to the SAI for more detailed information on exchanging Fund shares.
Class N shares are not eligible to be exchanged through
the website or through the Loomis Sayles Automated Voice Response
System.
In
certain circumstances, you may convert shares of your Fund from your current
share class into another share class in the same Fund. A conversion
is subject to the eligibility requirements of the share class of your Fund that
you are converting into including investment minimum
requirements. The conversion from one class of shares to another will be based
on the respective NAVs of the separate share classes
on the trade date for the conversion.
Generally,
a conversion between share classes of the same fund is a nontaxable event to the
shareholder. All requests for conversions must follow
the procedures set forth by the Distributor. The Fund reserves the right to
refuse any conversion request. Due to operational limitations
at your financial intermediary, your ability to convert share classes of the
same fund may be limited. Please consult your financial representative
for more information.
In
general, you may sell Institutional Class shares of any Loomis Sayles Fund and
use the proceeds to purchase Class Y shares in any Natixis Fund,
subject to the eligibility requirements, including fund minimums, of the fund
you are purchasing into.
Cost
Basis Reporting
Upon
the redemption or exchange of your shares in a Fund, the Fund will be required
to provide you and the Internal Revenue Service (“IRS”)
with cost basis and certain other related tax information about the Fund shares
you redeemed or exchanged. This cost basis reporting
requirement is effective for shares purchased, including through dividend
reinvestment, on or after January 1, 2012. Please consult the
Fund at www.loomissayles.com or by calling Loomis Sayles Funds at 800-633-3330,
as appropriate, for more information regarding available
methods for cost basis reporting and how to select a particular method. Please
also consult your tax adviser to determine which available
cost basis method is best for you.
Dividends
and Distributions
It
is the policy of each Fund to pay its shareholders each year, as dividends,
substantially all of its net investment income. Each Fund expects to
distribute substantially all of its net realized long- and short-term capital
gains annually (or, in the case of short-term capital gains, more frequently
than annually if determined by the Fund to be in the best interest of
shareholders), after applying any available capital loss carryovers.
To the extent permitted by law, the Board of Trustees may adopt a different
schedule for making distributions as long as distributions
of the net investment income and net realized capital gains, if any, are made at
least annually.
A
Fund’s distribution rate fluctuates over time for various reasons, and there can
be no assurance that a Fund’s distributions will not decrease or
that a Fund will make any distributions when scheduled. For example, foreign
currency losses potentially reduce or eliminate, and have in the
past reduced and eliminated, regularly scheduled distributions for certain
funds.
Capital
gain distributions normally are made annually, but may be made more frequently
as deemed advisable by the Funds and as permitted
by applicable law. To the extent permitted by law, the Board of Trustees may
change the frequency with which each Fund
declares
or pays dividends. The table below provides further information about each
Fund’s dividend policy.
|
| |
|
Generally
declares and pays dividends annually |
Generally
declares and pays dividends quarterly |
|
Loomis
Sayles Fixed Income Fund |
Loomis
Sayles Inflation Protected Securities Fund |
|
Loomis
Sayles Global Bond Fund |
|
|
Loomis
Sayles Institutional High Income Fund |
|
|
Loomis
Sayles Small Cap Growth Fund |
|
|
Loomis
Sayles Small Cap Value Fund |
|
|
Loomis
Sayles Small/Mid Cap Growth Fund |
|
You
may choose to:
|
• |
Participate
in the Dividend Diversification Program, which allows you to have all
dividends and distributions automatically invested in shares
of the same class of another Loomis Sayles Fund registered in your name.
Certain investment minimums and restrictions may apply. |
|
• |
Receive
distributions from dividends and interest in cash while reinvesting
distributions from capital gains in additional shares of the same
class
of the Fund, or in the same class of another Loomis Sayles
Fund. |
|
• |
Receive
distributions from capital gains in cash while reinvesting distributions
from dividends and interest in additional shares of the same class
of the Fund, or in the same class of another Loomis Sayles
Fund. |
|
• |
Receive
all distributions in cash. |
For
accounts held directly with a Fund, any cash distributions to be paid by check,
in an amount of $10 or less, will instead be automatically reinvested
in additional Fund shares. If a dividend or capital gain distribution check
remains uncashed for six months and your account is still
open, a
Fund will reinvest the dividend or distribution in additional shares of
the
Fund promptly after making this determination and the
check will be canceled. In addition, future dividends and capital gain
distributions will be automatically reinvested in additional shares of
the
Fund unless you subsequently contact the Fund and request to receive
distributions by check.
If
you do not select an option when you open your account, all distributions will
be reinvested.
Generally,
if you earn more than $10 annually in taxable income from a Loomis Sayles Fund
held in a non-retirement plan account, you will
receive a Form 1099-DIV to help you report the prior calendar year’s
distributions on your U.S. federal income tax return. This information
will also be reported to the IRS. Be sure to keep this Form 1099-DIV
as a permanent record. A fee may be charged for any duplicate
information requested.
Restrictions
On Buying, Selling and Exchanging Shares
The
Funds discourage excessive short-term trading that may be detrimental to the
Funds and their shareholders. Frequent abusive
purchases
and
redemptions of Fund shares by shareholders may present certain risks for other
shareholders in a Fund. This includes the risk of diluting the
value of Fund shares held by long
term shareholders, interfering with the efficient management of each Fund’s
portfolio and increasing brokerage
and administrative costs. Funds investing in securities that require special
valuation processes (such as foreign securities, below investment
grade securities or small capitalization securities), also may have increased
exposure to these risks. The Board of Trustees has adopted
the following policies to address and discourage such trading.
Each
Fund reserves the right to suspend or change the terms of purchasing or
exchanging shares. Each Fund and the Distributor reserve the right
to reject any purchase or exchange order for any reason, including if the
transaction is deemed not to be in the best interests of the Fund’s
other shareholders or possibly disruptive to the management of the Fund. A
shareholder whose exchange
order has been rejected may still
redeem its shares by submitting a redemption request as described under “How to
Redeem Shares.”
Limits
on Frequent Trading.
Excessive trading activity in a Fund is measured by the number of
round-trip
transactions in a shareholder’s account.
A round trip is defined as (1) a purchase (including a purchase by exchange)
into a Fund followed by a redemption (including a redemption
by exchange) out
of the same Fund; or (2) a redemption (including a redemption by exchange) out
of a Fund followed by a purchase
(including a purchase by exchange) into
the same Fund. A
round trip transaction is defined as occurring
in a single Fund within a 30-day
period. Two round trips in a 90-day period
will constitute a violation of the Fund’s trading limitations. After the
detection of a first violation,
the Fund or the Distributor will issue the shareholder and/or
their
financial intermediary
a written warning. The
written warning will
expire one year from the date the warning is issued, if no further violations
occur during the period. After
the detection of a second violation
(i.e.,
two more round trip transactions in the Fund within a 90-day
period), the Fund or the Distributor will restrict the shareholder
from making subsequent purchases (including purchases by exchange) in
that Fund for
90 days. After the detection of a third
violation
within 12 months of the second violation,
the Fund or the Distributor will restrict
the shareholder
and/or their financial intermediary
from making
purchases (including purchases by exchange)
into any of the shareholder’s accounts in the violated Fund for one year
from the date the third violation is issued.
The above limits are applicable whether a shareholder holds shares directly with
a Fund or indirectly
through a financial intermediary, such as a broker, bank, investment adviser,
record
keeper
for retirement plan participants, or other
third party. The preceding is not an exclusive description of activities that a
Fund and the Distributor may consider to be excessive,
and,
at its discretion, a Fund and the Distributor may restrict or prohibit
transactions by such identified shareholders or intermediaries
including
a period of restriction with no end date.
Notwithstanding
the above, certain financial intermediaries, such as retirement plan
administrators, may monitor and restrict the frequency of
purchase and redemption transactions in a manner different from that described
above. The policies of these intermediaries may be more or
less restrictive than the generally applicable policies described above. Each
Fund may choose to rely on a financial intermediary’s restrictions
on frequent trading in place of the Fund’s own restrictions if the Fund
determines, at its discretion, that the financial intermediary’s
restrictions provide reasonable protection for the Fund from excessive
short-term trading activity. Please contact your financial
representative for additional information regarding their policies for limiting
the frequent trading of Fund shares.
This
policy also does not apply with respect to shares purchased by certain
funds-of-funds or similar asset allocation programs that rebalance their
investments only infrequently. To be eligible for this exemption, the
fund-of-funds or asset allocation program must identify itself to and
receive prior written approval from a Fund or the Distributor. A Fund and the
Distributor may request additional information to enable
them to determine that the fund-of-funds or asset allocation program is not
designed to and/or is not serving as a vehicle for disruptive
short-term trading, which may include requests for (i) written assurances from
the sponsor or investment manager of the fund-of-funds
or asset allocation program that it enforces the Fund’s frequent trading policy
on investors or another policy reasonably designed to deter
disruptive short-term trading in Fund shares, and/or (ii) data regarding
transactions by investors in the fund-of-funds or asset allocation
program, for periods and on a frequency determined by the Fund and the
Distributor, so that the Funds
can monitor compliance by
such investors with the trading limitations of the Funds
or of the fund-of-funds or asset allocation program. Under certain
circumstances, waivers
to these conditions (including waivers to permit more frequent rebalancing) may
be approved for programs that in the Fund’s opinion
are not vehicles for excessive
trading
and are not likely to engage in abusive trading.
The
Funds and the Distributor may deem shares acquired, redeemed, or exchanged
through a firm discretionary program where purchases and
redemptions are made at a home office or firm level on behalf of a client not
deemed to be intended to engage in market timing. In addition
to the circumstances previously noted, the Funds reserve the right to waive any
purchase and exchange restrictions at each Fund’s sole
discretion where it believes such action is in the Fund’s best interests. The
exception would require additional review as noted above for asset
allocation programs.
Trade
Activity Monitoring.
Trading activity is monitored selectively on a daily basis in an effort to
detect excessive short-term trading activities.
If a Fund or the Distributor believes that a shareholder or financial
intermediary has engaged in excessive, short-term trading activity,
it may, at its discretion, request that the shareholder or financial
intermediary stop such activities or refuse to process purchases or exchanges
in the accounts. At its discretion, a Fund and the Distributor, as well as an
adviser to a Fund may ban trading in an account if, in their
judgment, a shareholder or financial intermediary has engaged in short-term
transactions that, while not necessarily in violation of the Fund’s
stated policies on frequent trading, are harmful to a Fund or its shareholders.
A Fund and the Distributor also reserve the right to notify
financial intermediaries of the shareholder’s trading activity.
Accounts
Held by Financial Intermediaries.
The ability of a Fund and the Distributor to monitor trades that are placed by
omnibus or other
nominee accounts may
be
severely limited in those instances in which the financial intermediary
maintains the record of a Fund’s underlying
beneficial owners. In general, each Fund and the Distributor will review trading
activity at the omnibus account level. If a Fund and
the Distributor detect suspicious activity, they may request and receive
personal identifying information and transaction histories for some
or all underlying shareholders (including plan participants) to determine
whether such shareholders have engaged in excessive short-term
trading activity. If a Fund believes that a shareholder has engaged in excessive
short-term trading activity in violation of the Fund’s policies
through an omnibus account, the Fund will attempt to limit transactions by the
underlying shareholder that engaged in such trading,
although it may be unable to do so. A Fund may also limit or prohibit additional
purchases of Fund shares by an intermediary. Investors
should not assume a Fund will be able to detect or prevent all trading practices
that may disadvantage a Fund.
Purchase
Restrictions
Each
Fund is required by federal regulations to obtain certain personal information
from you and to use that information to verify your identity.
The Funds may not be able to open your account if the requested information is
not provided. Each
Fund reserves the right to refuse
to open an account, close an account and redeem your shares at the then-current
price or take other such steps that the Fund deems
necessary to comply with federal regulations if your identity cannot be
verified.
Each
Fund reserves the right to create investment minimums in its sole
discretion.
Selling
Restrictions
The
table below describes restrictions placed on selling shares of
the
Funds.
Please see the SAI for additional information regarding redemption
payment policies.
|
| |
|
Restriction |
Situation |
|
Each
Fund may suspend the right of redemption: |
|
|
Each
Fund reserves the right to suspend account services or refuse transaction
requests: |
|
|
Each
Fund may pay the redemption price in whole or in part by a distribution
in-kind of readily marketable securities in lieu of cash or may
take
up to 7 days to pay a redemption request in order to raise
capital: |
|
|
Each
Fund may withhold redemption proceeds for 10 days from the purchase
date: |
|
The
Funds reserve the right to suspend account services or refuse transaction
requests if a Fund receives notice of a dispute between registered
owners or of the death of a registered owner or a Fund suspects a fraudulent
act. If a Fund refuses a transaction request because it receives
notice of a dispute, the transaction will be processed at the NAV next
determined after the Fund receives notice that the dispute has been
settled or a court order has been entered adjudicating the dispute. If a Fund
determines that its suspicion of fraud or belief that a dispute
existed was mistaken, the transaction will be processed as of the NAV next
determined after the transaction request was first received in
good order.
Certificates
Certificates
will not be issued or honored for any class of shares.
Unclaimed
Property Laws.
Many states have unclaimed property laws and regulations that provide for
transfer to the state (also known as “escheatment”)
of unclaimed or abandoned property under various circumstances. The particular
circumstances may include inactivity (e.g., no
owner-initiated contact for a certain period), returned mail (e.g., when mail
sent to a shareholder is returned by the post office as undeliverable),
or a combination of both inactivity and returned mail. If your account is deemed
unclaimed or abandoned under applicable state
property laws or regulations, the Funds may be required to “escheat” or transfer
the assets in your account to the applicable state’s unclaimed
property administration. The state may sell escheated shares and, if you
subsequently seek to reclaim your proceeds of liquidation from
the state, you may only be able to recover the amount received when the shares
were sold (and not the amount those shares are worth currently).
It
is your responsibility to maintain a correct address for your account, to keep
your account active by contacting the Transfer Agent by mail or
telephone or accessing your account through the Funds’ website, and to promptly
cash all checks for dividends, capital gains and redemptions.
Each state’s requirements to keep an account active can vary and are subject to
change. If you invest in a Fund through a financial
intermediary, you are encouraged to contact the financial intermediary regarding
applicable state unclaimed property laws. The Funds,
the Transfer Agent and the Distributor will not be liable to shareholders or
their representatives for good faith compliance with state unclaimed
property laws.
Tax
Consequences
Except
as
noted, the discussion
below
addresses
only the U.S. federal income tax consequences of an investment in a Fund and
does not address
any non-U.S., state, or local tax consequences.
Each
Fund intends to meet all requirements under Subchapter M of the
Code
necessary to qualify and be eligible each year for treatment as a
“regulated investment company,” and thus does not expect to pay any U.S. federal
income tax on income and capital gains that are timely distributed
to shareholders.
Unless
otherwise noted, the discussion below, to the extent it describes
shareholder-level tax consequences, pertains solely to taxable shareholders.
The Funds are not managed with a view toward minimizing taxes imposed on such
shareholders.
Taxation
of Fund Distributions.
For U.S. federal income tax purposes, distributions of investment income are
generally taxable to Fund shareholders
as ordinary income. Taxes on distributions of capital gains are determined by
how long a Fund owned (or is deemed to have owned)
the investments that generated them, rather than how long a shareholder has
owned his or her shares. Distributions attributable to the
excess of net long-term capital gains from the sale of investments that
a
Fund owned (or is deemed to have owned) for more than one year
over net short-term capital losses from the sale of investments that
a
Fund owned (or is deemed to have owned) for one year or less, and
that
are properly reported by the Fund as capital gain dividends (“Capital Gain
Dividends”) will generally be taxable to a shareholder receiving
such distributions as long-term capital gain includible in net capital gain and
taxed to individuals at reduced rates. Distributions attributable
to the excess of net short-term capital gains over net long-term capital losses
will be taxable as ordinary income.
A Fund’s transactions
in derivatives or short sales may cause a larger portion of distributions to be
taxable to shareholders as ordinary income than would
be the case absent such transactions.
Distributions
of investment income properly reported by a Fund as derived from “qualified
dividend income” will be taxed in the hands of individuals
at the reduced rates applicable to net capital gain, provided that the holding
period and other requirements are met at both the shareholder
and Fund levels. Income
generated by investments in fixed-income securities, derivatives and REITs
generally is not eligible for treatment
as qualified dividend income. Dividends received by a Fund from foreign
corporations that are not eligible for the benefits of a comprehensive
income tax treaty with the U.S. (other than dividends paid on stock of such a
foreign corporation that is readily tradable on an
established securities market in the U.S.) will not be treated as
qualified dividend income.
Additionally, a portion of a Fund’s distributions
may be eligible for a dividends-received deduction in the case of corporate
shareholders, provided certain requirements are met.
A
3.8% Medicare contribution tax is imposed on the net investment income of
certain individuals, trusts and estates to the extent their income
exceeds certain threshold amounts. Net investment income generally includes for
this purpose dividends, including any Capital
Gain
Dividends,
paid by a Fund and net capital gains recognized on the sale, redemption,
exchange or other taxable disposition of shares of the
Fund.
Fund
distributions are taxable whether shareholders receive them in cash or in
additional shares. In addition, Fund distributions are taxable to
shareholders even if they are paid from income or gains earned by a Fund before
a shareholder’s investment (and thus were included in the
price the shareholder paid for his or her shares). Such distributions are likely
to occur in respect of shares purchased at a time when a Fund’s
NAV reflects gains that are either unrealized or realized but not
distributed.
Dividends
declared by a Fund and payable to shareholders of record in October, November or
December of one year and paid in January of the
next year generally are taxable in the year in which the dividends are declared,
rather than the year in which the dividends are received.
Dividends
derived from interest on securities issued by the U.S. Government or its
agencies or instrumentalities, if any, may be exempt from state
and local income taxes. Each Fund advises shareholders of the proportion of the
Fund’s dividends that are derived from such interest.
Distributions
by a Fund to retirement plans and other investors that qualify for
tax-advantaged treatment under U.S. federal income tax laws
will generally not be taxable. Special tax
rules
apply to investments through such retirement plans. If your investment is
through such a plan,
you should consult your tax adviser to determine the suitability of a Fund as an
investment through your plan and the tax treatment of distributions
to you (including distributions of amounts attributable to an investment in a
Fund) from the plan.
Redemption,
Sale or Exchange of Fund Shares.
A redemption, sale or exchange of Fund shares (including an exchange of Fund
shares for shares
of another Loomis Sayles Fund) is a taxable event and generally will result in
recognition of gain or loss. Gain or loss, if any, recognized
by a shareholder on a redemption, sale, exchange or other taxable disposition of
Fund shares generally will be taxed as long-term capital
gain or loss if the shareholder held the shares for more than one year, and as
short-term capital gain or loss if the shareholder held the shares
for one year or less, assuming in each case that the shareholder held the shares
as capital assets. Short-term capital gains generally are taxed
at the rates applicable to ordinary income. Any loss realized upon a disposition
of shares held for six months or less will be treated as long-term,
rather than short-term, capital loss to the extent of any Capital Gain Dividends
received by the shareholder with respect to the shares.
The deductibility of capital losses is subject to limitations. See “Cost Basis
Reporting” above for information about certain cost basis reporting
obligations.
Taxation
of Certain Fund Investments.
A Fund’s investments in foreign securities may be subject to foreign withholding
and other taxes. In
that case, the Fund’s yield on those securities would be decreased. If a Fund
invests more than 50% of its assets in foreign securities, it generally
may elect to permit shareholders to claim a credit or deduction on their income
tax returns with respect to foreign taxes paid by the Fund.
The
Funds generally do not expect that shareholders will be entitled to claim a
credit or deduction with respect to foreign taxes incurred
by the Fund. In
addition, a Fund’s investments in foreign securities and foreign currencies may
be subject to special tax rules that have
the effect of increasing or accelerating the Fund’s recognition of ordinary
income and may affect the timing or amount of the Fund’s distributions.
Because
the Funds invest in foreign securities, shareholders should consult their tax
advisers about the consequences of their
investments
under foreign laws.
A
Fund’s investments in certain debt obligations
(such as those issued with “OID” or accrued market discount, in each case as
described in the
SAI),
mortgage-backed securities, asset-backed securities,
REITs
and derivatives may cause the Fund to recognize taxable income in excess
of the cash generated by such investments. Thus, a Fund could be required to
liquidate investments, including at times when it is not advantageous
to do so, in order to satisfy the
distribution requirements applicable to regulated investment companies under the
Code. In addition,
a Fund’s investments in derivatives may affect the amount, timing or character
of distributions to shareholders. In particular, a Fund’s
transactions in options or other derivatives or short sales may cause a larger
portion of distributions to be taxable to shareholders as ordinary
income than would be the case absent such transactions.
A
Fund may at times purchase debt instruments at a discount from the price at
which they were originally issued, especially during periods of
rising interest rates. For U.S. federal income tax purposes, some or all of this
market discount will, when recognized as income by a Fund, be
included in such Fund’s ordinary income, and will be taxable to shareholders as
such when it is distributed.
Backup
Withholding.
Each Fund is required in certain circumstances to apply backup withholding on
taxable dividends, redemption proceeds
and certain other payments that are paid to any shareholder
if
the shareholder does not furnish the Fund with certain information and
certifications or is
otherwise subject to backup withholding.
Please
see the SAI for additional information on the U.S. federal income tax
consequences of an investment in a Fund.
You
should consult your tax adviser for more information on your own situation,
including possible U.S. federal, state, local, foreign or other
applicable taxes.
Restructuring
and Liquidations
Investors
should note that each fund reserves the right to merge or reorganize at any
time, or to cease operations or liquidate itself. At any time
prior to the liquidation of a fund, shareholders may redeem their shares of the
fund pursuant to the procedures set forth under “How To
Redeem Shares.” The proceeds from any such redemption will be the net asset
value of the Fund’s shares. Shareholders may also exchange
their shares, subject to investment minimums and other restrictions on exchanges
as described under “Exchanging or Converting Shares.”
For federal income tax purposes, an exchange of a fund’s shares for shares of
another Loomis Sayles Fund is generally treated as a sale
on which a gain or loss may be recognized.
Retirement
Accounts.
Absent an instruction to the contrary prior to the liquidation date of a fund,
for shares of a fund held using a Loomis Sayles
Funds’ prototype document, in individual retirement accounts, in custodial
accounts under a SEP, or SARSEP plan or in certain other
retirement accounts, the Distributor will redeem any shares remaining in the
fund on the liquidation date and purchase shares of Loomis
Sayles Limited Term Government and Agency Fund (or, if that fund is no longer in
existence, then in shares of another comparable Natixis
Fund or Loomis Sayles Fund) at net asset value. The information in your current
account paperwork will be deemed up-to-date and accurate
unless you promptly inform us otherwise. Please refer to your plan documents or
contact your plan administrator or plan sponsor to
determine whether this paragraph applies to you.
financial
highlights
The
financial highlights tables are intended to help you understand each Fund’s
financial performance for the last five years (or, if shorter, the
period of the Fund’s operations). Certain information reflects financial results
for a single Fund share. The total returns in the table represent
the return that an investor would have earned (or lost) on an investment in a
Fund (assuming reinvestment of all dividends and distributions).
This information has been audited by PricewaterhouseCoopers LLP, an independent
registered public accounting firm, whose
report, along with each Fund’s financial statements, is included in the Funds’
annual reports
to shareholders. The Loomis
Sayles Funds I annual report and
Loomis
Sayles Funds II annual report are
incorporated by reference into the SAI, both of which are available free
of
charge upon request from the Distributor.
For
a share outstanding throughout each period.
Loomis
Sayles Fixed
Income
Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ended
September
30, 2022 |
Year
Ended
September
30, 2021 |
Year
Ended
September
30, 2020 |
Year
Ended
September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return |
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
The
variation in the Fund’s turnover rate from 2020 to 2021 was primarily due
to a repositioning of the portfolio due to a change in the portfolio
management team. |
For
a share outstanding throughout each period.
Loomis
Sayles Global
Bond
Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ended September
30, 2022 |
Year
Ended September
30, 2021 |
Year
Ended September
30, 2020 |
Year
Ended September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(c)
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(d)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
The
amount shown for a share outstanding does not correspond with the
aggregate realized and unrealized gain (loss) on investments for the
period due to the timing of sales and
redemptions of fund shares in relation to fluctuating market values of
investments of the Fund. |
|
(c) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(d) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
|
(e) |
Includes
interest expense. Without this expense the ratio of net expenses would
have been 0.69% and the ratio of gross expenses would have been
0.75%. |
|
(f) |
The
variation in the Fund’s turnover rate from 2021 to 2022 was primarily due
to a change in trading strategy from a previously utilized auction
strategy used in prior fiscal years. |
For
a share outstanding throughout each period.
Loomis
Sayles Global
Bond
Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Retail
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ended September
30, 2022 |
Year
Ended September
30, 2021 |
Year
Ended September
30, 2020 |
Year
Ended September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(d)
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(e)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
The
amount shown for a share outstanding does not correspond with the
aggregate realized and unrealized gain (loss) on investments for the
period due to the timing of sales and
redemptions of fund shares in relation to fluctuating market values of
investments of the Fund. |
|
(c) |
Amount
rounds to less than $0.01 per share. |
|
(d) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(e) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
|
(f) |
Includes
interest expense. Without this expense the ratio of net expenses would
have been 0.94% and the ratio of gross expenses would have been
1.00%. |
|
(g) |
The
variation in the Fund’s turnover rate from 2021 to 2022 was primarily due
to a change in trading strategy from a previously utilized auction
strategy used in prior fiscal years. |
For
a share outstanding throughout each period.
Loomis
Sayles Global Bond Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class
N |
|
|
Year
Ended September
30, 2023 |
Year
Ended September
30, 2022 |
Year
Ended September
30, 2021 |
Year
Ended September
30, 2020 |
Year
Ended September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(c)
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(d)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
The
amount shown for a share outstanding does not correspond with the
aggregate realized and unrealized gain (loss) on investments for the
period due to the timing of sales and
redemptions of fund shares in relation to fluctuating market values of
investments of the Fund. |
|
(c) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(d) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
|
(e) |
Includes
interest expense. Without this expense the ratio of net expenses would
have been 0.64% and the ratio of gross expenses would have been
0.65%. |
|
(f) |
The
variation in the Fund’s turnover rate from 2021 to 2022 was primarily due
to a change in trading strategy from a previously utilized auction
strategy used in prior fiscal years. |
For
a share outstanding throughout each period.
Loomis
Sayles Inflation Protected Securities Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ended September
30, 2022 |
Year
Ended September
30, 2021 |
Year
Ended September
30, 2020 |
Year
Ended September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b)
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
For
a share outstanding throughout each period.
Loomis
Sayles Inflation Protected Securities Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Retail
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ended September
30, 2022 |
Year
Ended September
30, 2021 |
Year
Ended September
30, 2020 |
Year
Ended September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b)
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been higher. |
For
a share outstanding throughout each period.
Loomis
Sayles Inflation
Protected Securities
Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class
N |
|
|
Year
Ended September
30, 2023 |
Year
Ended September
30, 2022 |
Year
Ended September
30, 2021 |
Year
Ended September
30, 2020 |
Year
Ended September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b)
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
For
a share outstanding throughout each period.
Loomis
Sayles Institutional
High
Income Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year
Ended
September
30, 2023 |
Year
Ended
September
30, 2022 |
Year
Ended
September
30, 2021 |
Year
Ended
September
30, 2020 |
Year
Ended
September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return |
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
The
variation in the Fund’s turnover rate from 2020 to 2021 was primarily due
to a repositioning of the portfolio due to a change in the portfolio
management team. |
For
a share outstanding throughout each period.
Loomis
Sayles Small Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ended
September
30, 2022 |
Year
Ended
September
30, 2021 |
Year
Ended
September
30, 2020 |
Year
Ended
September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return |
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment loss has been calculated using the average shares
outstanding during the period. |
|
(b) |
Includes
a non-recurring dividend. Without this dividend, net investment loss per
share would have been $(0.16), total return would have been (24.83%) and
the ratio of net investment
loss to average net assets would have been
(0.56%). |
For
a share outstanding throughout each period.
Loomis
Sayles Small Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Retail
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ende
September
30, 2022 |
Year
Ended
September
30, 2021 |
Year
Ended
September
30, 2020 |
Year
Ended
September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return |
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment loss has been calculated using the average shares
outstanding during the period. |
|
(b) |
Includes
a non-recurring dividend. Without this dividend, net investment loss per
share would have been $(0.21), total return would have been (25.01%) and
the ratio of net investment
loss to average net assets would have been (0.81%). |
|
(c) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(d) |
The
administrator agreed to waive its fees and/or reimburse a portion of the
Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been higher. |
For
a share outstanding throughout each period.
Loomis
Sayles Small Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class
N |
|
|
Year
Ended September
30, 2023 |
Year
Ended
September
30, 2022 |
Year
Ended
September
30, 2021 |
Year
Ended
September
30, 2020 |
Year
Ended
September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return |
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment loss has been calculated using the average shares
outstanding during the period. |
|
(b) |
Includes
a non-recurring dividend. Without this dividend, net investment loss per
share would have been $(0.13), total return would have been (24.71%) and
the ratio of net investment
loss to average net assets would have been
(0.44%). |
For
a share outstanding throughout each period.
Loomis
Sayles Small Cap Value Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ended September
30, 2022 |
Year
Ended September
30, 2021 |
Year
Ended September
30, 2020 |
Year
Ended September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b)
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
For
a share outstanding throughout each period.
Loomis
Sayles Small Cap Value Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Retail
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ended September
30, 2022 |
Year
Ended September
30, 2021 |
Year
Ended September
30, 2020 |
Year
Ended September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b)
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss) |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income (loss) has been calculated using the average
shares outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
For
a share outstanding throughout each period.
Loomis
Sayles Small Cap Value Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Admin
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ended September
30, 2022 |
Year
Ended September
30, 2021 |
Year
Ended September
30, 2020 |
Year
Ended September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(b)
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(c)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment loss has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
For
a share outstanding throughout each period.
Loomis
Sayles Small Cap Value Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class
N |
|
|
Year
Ended September
30, 2023 |
Year
Ended September
30, 2022 |
Year
Ended September
30, 2021 |
Year
Ended September
30, 2020 |
Year
Ended September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Total
Distributions |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return |
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses |
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment income has been calculated using the average shares
outstanding during the period. |
|
(b) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(c) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
For
a share outstanding throughout each period.
Loomis
Sayles Small/Mid Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional
Class |
|
|
Year
Ended September
30, 2023 |
Year
Ended
September
30, 2022 |
Year
Ended
September
30, 2021 |
Year
Ended
September
30, 2020 |
Year
Ended
September
30, 2019 |
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss(a)
|
|
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(d)
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(e)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
|
|
Net
investment loss |
|
|
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(a) |
Per
share net investment loss has been calculated using the average shares
outstanding during the period. |
|
(b) |
Includes
a non-recurring dividend. Without this dividend, net investment loss per
share would have been $(0.08), total return would have been 29.49% and the
ratio of net investment
loss to average net assets would have been (0.52%). |
|
(c) |
The
amount shown for a share outstanding does not correspond with the
aggregate realized and unrealized gain (loss) on investments for the
period due to the timing of sales and
redemptions of fund shares in relation to fluctuating market values of
investments of the Fund. |
|
(d) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(e) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
|
(f) |
Includes
additional voluntary waiver of advisory fee of
0.01%. |
For
a share outstanding throughout each period.
Loomis
Sayles Small/Mid Cap Growth Fund
|
|
|
|
|
|
|
|
| |
|
|
Class
N |
|
|
Year
Ended September
30, 2023 |
Year
Ended
September
30, 2022 |
Year
Ended
September
30, 2021 |
Period
Ended
September
30, 2020*
|
|
Net
asset value, beginning of the period |
$ |
|
$ |
|
$ |
|
$ |
|
|
Income
(loss) from Investment Operations: |
|
|
|
|
|
|
|
|
|
Net
investment loss(a)
|
|
|
|
|
|
|
|
|
|
Net
realized and unrealized gain (loss) |
|
|
|
|
|
|
|
|
|
Total
from Investment Operations |
|
|
|
|
|
|
|
|
|
Less
Distributions From: |
|
|
|
|
|
|
|
|
|
Net
realized capital gains |
|
|
|
|
|
|
|
|
|
Net
asset value, end of the period |
$ |
|
$ |
|
$ |
|
$ |
|
|
Total
return(c)
|
|
|
|
|
|
|
|
|
|
Ratios
to Average Net Assets: |
|
|
|
|
|
|
|
|
|
Net
assets, end of the period (000’s) |
$ |
|
$ |
|
$ |
|
$ |
|
|
Net
expenses(e)
|
|
|
|
|
|
|
|
|
|
Gross
expenses |
|
|
|
|
|
|
|
|
|
Net
investment loss |
|
|
|
|
|
|
|
|
|
Portfolio
turnover rate |
|
|
|
|
|
|
|
|
|
| |
|
* |
Class
operations commenced on October 1, 2019. |
|
(a) |
Per
share net investment loss has been calculated using the average shares
outstanding during the period. |
|
(b) |
Includes
a non-recurring dividend. Without this dividend, net investment loss per
share would have been $(0.07), total return would have been 29.66% and the
ratio of net investment
loss to average net assets would have been (0.50%). |
|
(c) |
Had
certain expenses not been waived/reimbursed during the period, total
returns would have been lower. |
|
(d) |
Periods
less than one year are not annualized. |
|
(e) |
The
investment adviser agreed to waive its fees and/or reimburse a portion of
the Fund’s expenses during the period. Without this waiver/reimbursement,
expenses would have been
higher. |
|
(f) |
Computed
on an annualized basis for periods less than one year. |
|
(g) |
Represents
the Fund’s portfolio turnover rate for the year ended September 30,
2020. |
appendix
a - financial intermediary specific commissions & investment minimum
waivers
appendix
a – financial intermediary specific commissions
& investment minimum waivers
UBS
Financial Services, Inc. (“UBS-FS”) (all
Funds except Loomis Sayles Fixed Income Fund, Loomis Sayles Institutional High
Income Fund
and Loomis Sayles Small/Mid Cap Growth Fund).
Pursuant
to an agreement with the Funds, Institutional Class shares may be available on
certain brokerage platforms at UBS-FS. For such platforms,
UBS-FS may charge commissions on brokerage transactions in the Funds’
Institutional Class shares. A shareholder should contact
UBS-FS for information about the commissions charged by UBS-FS for such
transactions.
The
minimum for the Institutional Class shares is waived for transactions through
such brokerage platforms at UBS-FS.
JP
Morgan
(all Funds except Loomis Sayles Fixed Income Fund and Loomis Sayles
Institutional High Income Fund).
There
is no initial investment minimum for shareholders purchasing Class N shares
through Fee Based Programs (such as wrap accounts) where
such shares are held within a JP Morgan omnibus account.
Class
N shares purchased through a Fee Based Program and held within a JP Morgan
omnibus account, where the omnibus account does not
have a balance of at least $1,000,000 within two years of the establishment of
the omnibus account, will not be subject to liquidation.
Exemption
from Minimum Balance Policy
Class
N accounts held within an omnibus account are exempt from the $500 minimum
balance policy.
appendix
b - additional index information
additional
index information
|
| |
|
Bloomberg
Global Aggregate Bond
Index |
Provides
a broad-based measure of the global investment-grade fixed income markets.
The four major components of this index
are the U.S. Aggregate, the Pan-European Aggregate, the Asian-Pacific
Aggregate, and the Canadian Aggregate Indices.
The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian
government, agency and corporate securities,
and USD investment grade 144A securities. |
|
Bloomberg
U.S. Aggregate Bond
Index |
A
broad-based index that covers the U.S. dollar-denominated,
investment-grade, fixed-rate, taxable bond market of SEC-registered
securities. The index includes bonds from the U.S. Treasury,
government-related, corporate, mortgage-backed securities,
asset-backed securities, and collateralized mortgage-backed securities
sectors. |
|
Bloomberg
U.S. Corporate High-Yield
Bond Index |
Measures
the market of U.S. dollar-denominated, non-investment grade, fixed-rate,
taxable corporate bonds. Securities are
classified as high yield if the middle rating of Moody’s, Fitch, and
S&P is Ba1/BB+/BB+ or below, excluding emerging market
debt. |
|
Bloomberg
U.S. Government/Credit
Bond Index |
The
index is a broad-based flagship benchmark that measures the
non-securitized component of the U.S. Aggregate Index. The
U.S. Government/Credit Bond Index includes investment grade, U.S.
dollar-denominated, fixed-rate Treasuries (i.e., public
obligations of the U.S. Treasury that have remaining maturities of more
than one year), government-related issues (i.e.,
agency, sovereign, supranational, and local authority debt), and corporate
securities. |
|
Bloomberg
U.S. Treasury Inflation
Protected Securities Index |
An
unmanaged index that tracks inflation-protected securities issued by the
U.S. Treasury. |
|
Russell
2000®
Growth Index |
An
unmanaged index that measures the performance of the small-cap growth
segment of the U.S. equity universe. It includes
those Russell 2000®
companies with higher price-to-book ratios and higher forecasted growth
values. |
|
Russell
2500™ Growth Index |
An
unmanaged index that measures the performance of the small to mid-cap
growth segment of the U.S. equity universe. It
includes those Russell 2500™ Index companies with higher price-to-book
ratios and higher forecasted growth values. |
|
Russell
2000®
Index |
An
unmanaged index that measures the performance of the small-cap segment of
the U.S. equity universe. |
|
Russell
3000®
Index |
An
unmanaged index that measures the performance of the largest 3000 US
companies representing approximately 98% of the
investable US equity market. |
|
Russell
2000®
Value Index |
An
unmanaged index that measures the performance of the small-cap value
segment of the U.S. equity universe. It includes
those Russell 2000®
companies with lower price-to-book ratios and lower forecasted growth
values. |
If
you would like more information about the Funds, the following documents are
available free upon request:
ANNUAL
AND SEMIANNUAL REPORTS
Provide
additional information about each Fund’s investments. Each report includes a
discussion of the market conditions and investment
strategies that significantly affected the Funds’ performance during the last
fiscal year.
STATEMENT
OF ADDITIONAL INFORMATION (SAI)
Provides
more detailed information about the Funds and their investment limitations and
policies. The SAI has been filed with the
SEC and is incorporated into this prospectus by reference.
To
order a free copy of the Funds’ annual or semiannual reports or their SAI, or to
make shareholder inquiries generally, contact your
financial representative, or Loomis Sayles at 800-633-3330. The Funds’ annual
and semiannual reports and SAI are available on
the Funds’ website at www.loomissayles.com.
Text-only
copies of the Funds’ reports and SAI and other information are available free
from the EDGAR Database on the SEC’s Internet
site at: www.sec.gov. Copies of this information may also be obtained, after
paying a duplicating fee, by electronic request at
the following E-mail address: [email protected].
Important
Notice Regarding Delivery of Shareholder Documents:
In
our continuing effort to reduce your fund’s expenses and the amount of mail that
you receive from us, we will combine mailings
of prospectuses, annual or semiannual reports and proxy statements to your
household. If more than one family member in
your household owns the same fund or funds described in a single prospectus,
report or proxy statement, you will receive one mailing
unless you request otherwise. Additional copies of our prospectuses, reports or
proxy statements may be obtained at any time
by calling 800-633-3330. If you are currently receiving multiple mailings to
your household and would like to receive only one
mailing or if you wish to receive separate mailings for each member of your
household in the future, please call us at the telephone
number listed above and we will resume separate mailings within 30 days of your
request.
|
| |
|
Loomis
Sayles Funds I
File
No. 811-08282
Loomis
Sayles Funds II
File
No. 811-06241 |
M-LS51-0224 |
