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.
