LOOMIS SAYLES AGGRESSIVE GROWTH FUND
                             LOOMIS SAYLES BOND FUND
                         LOOMIS SAYLES FIXED INCOME FUND
                         LOOMIS SAYLES GLOBAL BOND FUND
                LOOMIS SAYLES INFLATION PROTECTED SECURITIES FUND
                  LOOMIS SAYLES INSTITUTIONAL HIGH INCOME FUND
              LOOMIS SAYLES INTERMEDIATE DURATION FIXED INCOME FUND
                LOOMIS SAYLES INVESTMENT GRADE FIXED INCOME FUND
                       LOOMIS SAYLES SMALL CAP GROWTH FUND
                       LOOMIS SAYLES SMALL CAP VALUE FUND
                      LOOMIS SAYLES TAX-MANAGED EQUITY FUND
                            LOOMIS SAYLES VALUE FUND
                          LOOMIS SAYLES WORLDWIDE FUND



 Supplement dated September 1, 2005 to the Loomis Sayles Funds Prospectuses
 dated February 1, 2005, as may be supplemented from time to time

THE  SUB-SECTION  "HOW TO  PURCHASE  SHARES"  WITHIN THE  "GENERAL  INFORMATION"
SECTION OF THE PROSPECTUS IS SUPPLEMENTED AS FOLLOWS:


Subject to the  approval of the Fund,  an investor  may  purchase  Institutional
Class shares of a Fund with liquid securities and other assets that are eligible
for purchase by the Fund  (consistent  with the Fund's  investment  policies and
restrictions) and that have a value that is readily  ascertainable in accordance
with the Fund's valuation policies.  These transactions will be effected only if
Loomis Sayles deems the security to be an appropriate  investment for the Fund..
Assets  purchased by a Fund in such a  transaction  will be valued in accordance
with  procedures  adopted by the Fund.  The Funds  reserve the right to amend or
terminate this practice at any time.


THE  FOLLOWING  INFORMATION  APPLIES TO LOOMIS  SAYLES  AGGRESSIVE  GROWTH FUND,
LOOMIS SAYLES BOND FUND, LOOMIS SAYLES GLOBAL BOND FUND, LOOMIS SAYLES SMALL CAP
GROWTH FUND AND LOOMIS SAYLES SMALL CAP VALUE FUND ONLY. THE SUB-SECTION "HOW TO
EXCHANGE SHARES" WITHIN THE "GENERAL  INFORMATION"  SECTION OF THE PROSPECTUS IS
SUPPLEMENTED AS FOLLOWS:

CONVERSION RIGHTS

In certain  limited  circumstances,  you may convert Retail Class shares of your
Fund to  Institutional  Class  shares of the same Fund or convert  Institutional
Class shares of your Fund to Retail Class shares of the same Fund.  The value of
shares  that you wish to  convert  must meet the  investment  minimum of the new
Class.  The conversion  from one class of shares to another will be based on the
respective  net asset values of the  separate  classes on the trade date for the
conversion.  You will not be charged any  redemption  fee or  exchange  fee as a
result of the exchange. A conversion between share classes of the same fund is a
nontaxable event to the shareholder.

You may convert Retail Class shares of your Fund to  Institutional  Class shares
of the same Fund if you have  accumulated  shares with a net asset value greater
than or equal to the minimum investment amount for Institutional Class shares of
that same Fund. You may convert from Institutional  Class shares to Retail Class
shares  only if the  investment  option or program  through  which you invest no
longer permits the use of  Institutional  Class shares in that option or program
or if you otherwise are no longer able to  participate  in  Institutional  Class
shares.  A  conversion  into a  class  of  shares  is  subject  to the  purchase
restrictions  of such Class as described in the Fund's  prospectus  (see "How to
Purchase Shares").

In order to convert  shares,  you must send a signed  letter of  instruction  to
Loomis  Sayles  Funds that  includes  the name of the Fund and the Class you are
converting from, the Class you are converting to, the exact name(s) in which the
shares are  registered,  any special  capacity in which you are signing (such as
trustee  or  custodian  or on behalf  of a  partnership,  corporation,  or other
entity),  your address,  telephone  number,  account  number,  and the number of
shares or dollar amount to be converted to the following address:


Regular Mail:                                         Overnight Mail:
Loomis Sayles Funds                                   Loomis Sayles Funds
P.O. Box 219594                                       330 West 9th Street
Kansas City, MO 64121-9594                            Kansas City, MO 64105-1514