BOSTON--(BUSINESS WIRE)--Gateway Investment Advisers, LLC (Gateway), an affiliate of Natixis Investment Managers, celebrates the 40th anniversary of the firm’s flagship Gateway Fund (GATEX), the oldest and largest fund in Morningstar’s options-based category.1 Launched on December 7, 1977, the Gateway Fund is a low-volatility equity mutual fund that invests in stocks and uses S&P 500® Index options to reduce risk and enhance risk-adjusted return. Based in Cincinnati, Gateway manages $12.1 billion as of September 30, 2017,2 which includes the Gateway Fund.
“The Gateway Fund’s investment success is due to consistent adherence to the Fund’s strategy,” said Paul R. Stewart, President and CEO of Gateway. “We are deeply grateful to the many contributors to the Fund’s success, including Gateway employees over the years, the financial advisors who have placed their trust in us, and the support of the Fund Trustees and Natixis Investment Managers, which has owned the firm since 2008.”
“We congratulate the Gateway team on this achievement. The longevity and success of the Gateway Fund is a testament to the quality of the Fund’s active strategy and process,” said David Giunta, CEO for the US and Canada at Natixis Investment Managers. “In a market where investors are concerned about the return of volatility, the Fund remains as relevant as the day it was launched.”
Gateway is known for its risk-conscious investment approach that seeks to capture the majority of the return associated with equity market investments while exposing investors to less risk than other equity investments. The Gateway Fund invests in a broadly diversified common stock portfolio and manages risk by selling index call options3 and purchasing index put options.4 Gateway’s strategy is designed to take advantage of cash flows generated from the sale of index call options, which typically increase as a function of increasing market volatility, but may also reduce returns in a rising market. Since February 2008, when Gateway was acquired by Natixis Investment Managers, net assets in the Gateway Fund have grown from $4.3 billion (as of 2/19/08) to $8.4 billion (as of 12/7/17).
Over the 40-year life of the Fund, Gateway Fund (Class A shares at NAV) has delivered an average annualized return of 7.54% per year.5 This compares to an 11.81% return for the S&P 500® Index and a return of 7.35% for the Bloomberg Barclays US Aggregate Bond Index over the same time period. Historically, the Fund has outpaced inflation with limited volatility to a level comparable to intermediate-term to long-term bonds.6 Its historically attractive risk/return profile is illustrated by the Fund’s historic return and risk levels relative to the S&P 500® Index, low beta relative to the S&P 500® Index and low correlation relative to the Bloomberg Barclays US Aggregate Bond Index.7, 8
Average Annualized Total Returns (as of 12/7/2017)†
|Gateway Fund Class A at NAV||9.04%||9.07%||5.47%||5.62%||3.10%||7.54%|
|Gateway Fund Class A with 5.75% maximum sales charge||2.78%||2.79%||3.41%||4.38%||2.49%||7.38%|
|S&P 500® Index||20.05%||20.05%||10.62%||15.61%||8.08%||11.81%|
|Bloomberg Barclays US Aggregate Bond Index||3.35%||3.31%||2.39%||2.04%||4.10%||7.35%|
Average Annualized Total Returns (as of 9/30/2017)†
|Gateway Fund Class A at NAV||2.46%||9.62%||5.16%||5.15%||2.99%||7.54%|
|Gateway Fund Class A with 5.75% maximum sales charge||-3.42%||3.32%||3.11%||3.92%||2.38%||7.38%|
|S&P 500® Index||4.48%||18.61%||10.81%||14.22%||7.44%||11.73%|
|Bloomberg Barclays US Aggregate Bond Index||0.85%||0.07%||2.71%||2.06%||4.27%||7.38%|
Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. †Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any.
Prior to 2/15/08, performance is that of the predecessor fund, restated to reflect the sales loads of Class A shares.
Gross Expense Ratio Class A 1.02% / Net Expense Ratio Class A 0.94%.
As of the most recent prospectus, the investment advisor has contractually agreed to waive fees and/or reimburse expenses (with certain exceptions) once the expense cap of the fund has been exceeded. This arrangement is set to expire on 4/30/2018. When an expense cap has not been exceeded, the gross and net expense ratios and/or yields may be the same.
About Gateway Investment Advisers, LLC
Gateway is a Cincinnati-based investment management firm with a 40-year history of low volatility equity investing and one of the industry’s longest-running option-based risk management programs. With an inception date in 1977, the firm’s flagship mutual fund, Gateway Fund, has one of the longest track records for funds of its type in the industry. The firm’s other low volatility equity offerings include Gateway Equity Call Premium Fund, a sub-advised closed-end fund and variable insurance mandates, pension fund mandates and private accounts for individuals. Gateway’s assets under management totaled $12.1 billion as of September 30, 2017.9
About Natixis Investment Managers
Natixis Investment Managers serves financial professionals with more insightful ways to construct portfolios. Powered by the expertise of 26 specialized investment managers globally, we apply Active ThinkingSM to deliver proactive solutions that help clients pursue better outcomes in all markets. Natixis ranks among the world’s largest asset management firms10 (€813.1 billion / $961.1 billion AUM11).
Natixis Investment Managers includes all of the investment management and distribution entities affiliated with Natixis Distribution, L.P. and Natixis Investment Managers S.A. Services/products are not available in all jurisdictions.
Important Fund Risks
Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Options may be used for hedging purposes, but also entail risks related to liquidity, market conditions and credit that may increase volatility. The value of the fund’s positions in options may fluctuate in response to changes in the value of the underlying asset. Selling call options may limit returns in a rising market. Real estate investing may be subject to risks including but not limited to declines in the value of real estate, risks related to general economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. Visit im.natixis.com or call 800-225-5478 for a prospectus or a summary prospectus containing this and other information. Read it carefully.
Natixis Distribution, L.P. is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are as of 12/7/2017 and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Actual results may vary.
This document may contain references to third party copyrights, indexes, and trademarks, each of which is the property of its respective owner. Such owner is not affiliated with Natixis Investment Managers or any of its related or affiliated companies (collectively “Natixis”) and does not sponsor, endorse or participate in the provision of any Natixis services, funds or other financial products. The index information contained herein is derived from third parties and is provided on an “as is” basis. The user of this information assumes the entire risk of use of this information. Each of the third party entities involved in compiling, computing or creating index information disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to such information.
1 As of 12/7/2017 the Gateway Fund had $8.4 billion total net
2 Assets under management (“AUM”), as reported, may include notional assets, assets serviced, gross assets and other types of non-regulatory AUM.
3 A call option contract is an agreement that allows the owner of the contract to purchase a security at a specific price within a predetermined time period.
4 A put option contract is an agreement that allows the owner of the contract to sell a security at a specific price within a predetermined time period.
5 Period is 12/7/1977 to 12/7/2017. Class A performance at NAV does not include the effect of sales charges. If the maximum sales charge were included, returns would have been lower.
6 Gateway Fund Class A has exhibited volatility (based on annualized standard deviation of monthly returns from 12/31/77 to 9/30/2017) of 7.37%, which falls between the average volatility of 4.20% for the Bloomberg Barclays US Govt./Credit Intermediate Bond Index and the average volatility of 9.73% for the Bloomberg Barclays US Govt./Credit Long Bond Index over the same period.
7 Beta analyzes the risk associated with the fund relative to market risks. For example, the market has a beta of 1.00, so if a fund has a beta of 0.85, it can be expected to be 15% less volatile than the overall market. Conversely, if it has a beta of 1.08, a fund can be expected to be 8% more volatile than the overall market.
8 S&P 500® Index is a widely recognized measure of US stock market performance. It is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation, among other factors. Bloomberg Barclays US Aggregate Bond Index is an unmanaged index that covers the US-dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed securities, asset-backed securities, and collateralized mortgage-backed securities sectors. You may not invest directly in an index.
9 Net asset value as of September 30, 2017. Assets under management (“AUM”), as reported, may include notional assets, assets serviced, gross assets and other types of non-regulatory AUM.
10 Cerulli Quantitative Update: Global Markets 2017 ranked Natixis Investment Managers (formerly Natixis Global Asset Management) as the 15th largest asset manager in the world based on assets under management as of December 31, 2016.
11 Net asset value as of September 30, 2017. Assets under management (“AUM”), as reported, may include notional assets, assets serviced, gross assets and other types of non-regulatory AUM.