UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22099
Gateway Trust
(Exact name of Registrant as specified in charter)
888 Boylston Street, Suite 800 Boston, Massachusetts 02199-8197
(Address of principal executive offices) (Zip code)
Russell L. Kane, Esq.
Natixis Distribution, L.P.
888 Boylston Street, Suite 800
Boston, Massachusetts 02199-8197
(Name and address of agent for service)
Registrant’s telephone number, including area code: (617) 449-2822
Date of fiscal year end: December 31
Date of reporting period: June 30, 2018
Item 1. Reports to Stockholders.
The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:
Semiannual Report
June 30, 2018
Gateway Fund
Gateway Equity Call Premium Fund
Mirova Global Green Bond Fund
Mirova Global Sustainable Equity Fund
Table of Contents
Portfolio Review | 1 | |||
Portfolio of Investments | 17 | |||
Financial Statements | 47 | |||
Notes to Financial Statements | 72 |
Managers | Symbols | |
Daniel M. Ashcraft, CFA® | Class A GATEX | |
Michael T. Buckius, CFA® | Class C GTECX | |
Paul R. Stewart, CFA® | Class N GTENX | |
Kenneth H. Toft, CFA® | Class Y GTEYX | |
Gateway Investment Advisers, LLC |
Investment Goal
The fund seeks to capture the majority of returns associated with equity market investments, while exposing investors to less risk than other equity investments.
1 |
Average Annual Total Returns — June 30 20184
Expense Ratios5 | ||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | Life of Class N | Gross | Net | ||||||||||||||||||||||
Class Y (Inception 2/19/08) | ||||||||||||||||||||||||||||
NAV | -0.11 | % | 4.53 | % | 5.21 | % | 3.64 | % | — | % | 0.77% | 0.70% | ||||||||||||||||
Class A (Inception 12/07/77) | ||||||||||||||||||||||||||||
NAV | -0.21 | 4.27 | 4.96 | 3.39 | — | 1.02 | 0.94 | |||||||||||||||||||||
With 5.75% Maximum Sales Charge | -5.94 | -1.71 | 3.73 | 2.78 | — | |||||||||||||||||||||||
Class C (Inception 2/19/08) | ||||||||||||||||||||||||||||
NAV | -0.61 | 3.48 | 4.17 | 2.61 | — | 1.77 | 1.70 | |||||||||||||||||||||
With CDSC1 | -1.60 | 2.48 | 4.17 | 2.61 | — | |||||||||||||||||||||||
Class N (Inception 5/1/17) | ||||||||||||||||||||||||||||
NAV | -0.06 | 4.61 | — | — | 5.02 | 0.74 | 0.65 | |||||||||||||||||||||
Comparative Performance | ||||||||||||||||||||||||||||
S&P 500® Index2 | 2.65 | 14.37 | 13.42 | 10.17 | 14.03 | |||||||||||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond Index3 | -1.62 | -0.40 | 2.27 | 3.72 | 0.42 |
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 more recent month-end performance, visit im.natixis.com/performance. 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. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.
1 | Performance for Class C shares assumes a 1% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase. |
2 | S&P 500® Index is a widely recognized measure of U.S. stock market performance. It is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation, among other factors. It also measures the performance of the large cap segment of the US equities market. |
3 | Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index that covers the U.S.-dollar denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed securities, asset-backed securities, and collateralized mortgage-backed securities sectors. |
4 | Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower. |
5 | Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense caps set to expire on 4/30/19. When a Fund’s expenses are below the cap, gross and net expense ratios will be the same. See Note 6 of the Notes to Financial Statements for more information about the Fund’s expense caps. |
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GATEWAY EQUITY CALL PREMIUM FUND
Managers | Symbols | |
Daniel M. Ashcraft, CFA® | Class A GCPAX | |
Michael T. Buckius, CFA® | Class C GCPCX | |
Kenneth H. Toft, CFA® | Class N GCPNX | |
Gateway Investment Advisers, LLC | Class Y GCPYX |
Investment Goal
The Fund seeks total return with less risk than U.S. equity markets.
3 |
Average Annual Total Returns — June 30, 20184
Expense Ratios5 | ||||||||||||||||||||||||
6 Months | 1 Year | Life of Class | Gross | Net | ||||||||||||||||||||
Class Y (Inception 9/30/14) | Class Y/A/C | Class N | ||||||||||||||||||||||
NAV | -0.07 | % | 5.97 | % | 6.35 | % | — | % | 1.05% | 0.95% | ||||||||||||||
Class A (Inception 9/30/14) | ||||||||||||||||||||||||
NAV | -0.14 | 5.62 | 6.09 | — | 1.30 | 1.20 | ||||||||||||||||||
With 5.75% Maximum Sales Charge | -5.91 | -0.46 | 4.42 | — | ||||||||||||||||||||
Class C (Inception 9/30/14) | ||||||||||||||||||||||||
NAV | -0.45 | 4.88 | 5.33 | — | 2.05 | 1.95 | ||||||||||||||||||
With CDSC1 | -1.45 | 3.88 | 5.33 | — | ||||||||||||||||||||
Class N (Inception 5/1/17) | ||||||||||||||||||||||||
NAV | 0.04 | 6.02 | — | 6.45 | 14.26 | 0.90 | ||||||||||||||||||
Comparative Performance | ||||||||||||||||||||||||
CBOE S&P 500 BuyWrite Index (BXMSM)2 | 1.78 | 7.28 | 6.93 | 8.11 | ||||||||||||||||||||
S&P 500® Index3 | 2.65 | 14.37 | 11.22 | 14.03 |
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. 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. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.
1 | Performance for Class C shares assumes a 1% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase. |
2 | The CBOE S&P 500 BuyWrite Index (BXMSM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500® Index. The BXM is a passive total return index based on (1) buying an S&P 500 stock index portfolio, and (2) “writing” (or selling) the near-term S&P 500® Index (SPXSM) “covered” call option, generally on the third Friday of each month. The SPX call written will have about one month remaining to expiration, with an exercise price just above the prevailing index level (i.e., slightly out of the money). The SPX call is held until expiration and cash settled, at which time a new one-month, near-the-money call is written. |
3 | S&P 500® Index is a widely recognized measure of U.S. stock market performance. It is an unmanaged index of 500 common stocks chosen for market size, liquidity, and industry group representation, among other factors. It also measures the performance of the large cap segment of the US equities market. |
4 | Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower. |
5 | Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense caps set to expire on 4/30/19. When a Fund’s expenses are below the cap, gross and net expense ratios will be the same. See Note 6 of the Notes to Financial Statements for more information about the Fund’s expense caps. |
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MIROVA GLOBAL GREEN BOND FUND
Managers | Symbols | |
Christopher Wigley | Class A MGGAX | |
Marc Briand | Class N MGGNX | |
Ostrum Asset Management U.S., LLC (formerly, Natixis Asset Management U.S., LLC) | Class Y MGGYX |
Investment Goal
The Fund seeks to provide total return, through a combination of capital appreciation and current income, by investing in green bonds.
Average Annual Total Returns — June 30, 20182
Expense Ratios3 | ||||||||||||||||||||
6 Months | 1 Year | Life of Fund | Gross | Net | ||||||||||||||||
Class Y (Inception 2/28/17) | ||||||||||||||||||||
NAV | 0.05 | % | 1.31 | % | 1.28 | % | 3.62% | 0.71% | ||||||||||||
Class A (Inception 2/28/17) | ||||||||||||||||||||
NAV | -0.06 | 1.10 | 1.05 | 5.23 | 0.96 | |||||||||||||||
With 4.25% Maximum Sales Charge | -4.29 | -3.24 | -2.16 | |||||||||||||||||
Class N (Inception 2/28/17) | ||||||||||||||||||||
NAV | 0.06 | 1.33 | 1.38 | 1.11 | 0.67 | |||||||||||||||
Comparative Performance | ||||||||||||||||||||
Bloomberg Barclays MSCI Green Bond Index1 | 0.58 | 2.56 | 2.70 |
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. 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. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.
1 | The Bloomberg Barclays MSCI Green Bond Index provides a broad-based measure of global fixed-income securities issued to fund projects with direct environmental benefits according to MSCI ESG Research’s green bond criteria. The green bonds are primarily investment-grade, or may be classified by other sources when bond ratings are not available. The Index may include green bonds from the corporate, securitized, Treasury, or government-related sectors. |
2 | Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower. |
3 | Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense caps set to expire on 4/30/19. When a Fund’s expenses are below the cap, gross and net expense ratios will be the same. See Note 6 of the Notes to Financial Statements for more information about the Fund’s expense caps. |
5 |
MIROVA GLOBAL SUSTAINABLE EQUITY FUND
Managers | Symbols | |
Jens Peers, CFA® | Class A ESGMX | |
Suzanne Senellart | Class C ESGCX | |
Hua Cheng, CFA®, PhD | Class N ESGNX | |
Ostrum Asset Management U.S., LLC (formerly, Natixis Asset Management U.S., LLC) | Class Y ESGYX |
Investment Goal
The Fund seeks long-term capital appreciation.
| 6
MIROVA GLOBAL SUSTAINABLE EQUITY FUND
Average Annual Total Returns — June 30, 20183
Expense Ratios4 | ||||||||||||||||||||||||
6 Months | 1 Year | Life of Class | Gross | Net | ||||||||||||||||||||
Class Y (Inception 3/31/16) | Class Y/A/C | Class N | ||||||||||||||||||||||
NAV | 2.02 | % | 13.28 | % | 13.31 | % | — | % | 1.16% | 1.05% | ||||||||||||||
Class A (Inception 3/31/16) | ||||||||||||||||||||||||
NAV | 1.88 | 13.03 | 13.04 | — | 1.43 | 1.30 | ||||||||||||||||||
With 5.75% Maximum Sales Charge | -3.99 | 6.53 | 10.11 | — | ||||||||||||||||||||
Class C (Inception 3/31/16) | ||||||||||||||||||||||||
NAV | 1.50 | 12.11 | 12.19 | — | 2.18 | 2.05 | ||||||||||||||||||
With CDSC1 | 0.50 | 11.11 | 12.19 | — | ||||||||||||||||||||
Class N (Inception 5/1/17) | ||||||||||||||||||||||||
NAV | 2.02 | 13.32 | — | 14.55 | 14.30 | 1.00 | ||||||||||||||||||
Comparative Performance | ||||||||||||||||||||||||
MSCI World Index (Net)2 | 0.43 | 11.09 | 13.38 | 11.60 |
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. 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. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.
1 | Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase. |
2 | MSCI World Index (Net) is an unmanaged index that is designed to measure the equity market performance of developed markets. It is composed of common stocks of companies representative of the market structure of developed market countries in North America, Europe, and the Asia/Pacific Region. The index is calculated without dividends, with net or with gross dividends reinvested, in both U.S. dollars and local currencies. |
3 | Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower. |
4 | Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense caps set to expire on 4/30/19. When a Fund’s expenses are below the cap, gross and net expense ratios will be the same. See Note 6 of the Notes to Financial Statements for more information about the Fund’s expense caps. |
7 |
ADDITIONAL INFORMATION
All investing involves risk, including the risk of loss. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.
ADDITIONAL INDEX INFORMATION
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 Affiliates”) and does not sponsor, endorse or participate in the provision of any Natixis Affiliates services, funds or other financial products.
The index information contained herein is derived form 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.
PROXY VOTING INFORMATION
A description of Natixis Funds’ proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on Natixis Funds’ website at im.natixis.com; and on the Securities and Exchange Commission’s (SEC) website at www.sec.gov. Information regarding how Natixis Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on Natixis Funds’ website and the SEC’s website.
QUARTERLY PORTFOLIO SCHEDULES
Natixis Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.
| 8
UNDERSTANDING FUND EXPENSES
As a mutual fund shareholder, you incur different types of costs: transaction costs, including sales charges (loads) on purchases, contingent deferred sales charges on redemptions, and ongoing costs, including management fees, distribution and/or service fees (12b-1 fees), and other fund expenses. Certain exemptions may apply. These costs are described in more detail in the Fund’s prospectus. The following examples are intended to help you understand the ongoing costs of investing in the Fund and help you compare these with the ongoing costs of investing in other mutual funds.
The first line in the table for each class shows the actual account values and actual Fund expenses you would have paid on a $1,000 investment in the Fund from January 1, 2018 through June 30, 2018. To estimate the expenses you paid over the period, simply divide your account value by $1,000 (for example, $8,600 account value divided by $1,000 = 8.60) and multiply the result by the number in the Expenses Paid During Period column as shown for your Class.
The second line for the table of each class provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid on your investment for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown reflect ongoing costs only, and do not include any transaction costs, such as sales charges. Therefore, the second line in the table of each Fund is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. If transaction costs were included, total costs would be higher.
9 |
GATEWAY FUND | BEGINNING ACCOUNT VALUE 1/1/2018 | ENDING ACCOUNT VALUE 6/30/2018 | EXPENSES PAID DURING PERIOD* 1/1/2018 – 6/30/2018 | |||||||||
Class A | ||||||||||||
Actual | $1,000.00 | $997.90 | $4.66 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.13 | $4.71 | |||||||||
Class C | ||||||||||||
Actual | $1,000.00 | $993.90 | $8.40 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,016.36 | $8.50 | |||||||||
Class N | ||||||||||||
Actual | $1,000.00 | $999.40 | $3.22 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.57 | $3.26 | |||||||||
Class Y | ||||||||||||
Actual | $1,000.00 | $998.90 | $3.47 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.32 | $3.51 |
* | Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.94%, 1.70%, 0.65% and 0.70% for Class A, C, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), divided by 365 (to reflect the half-year period). |
GATEWAY EQUITY CALL PREMIUM FUND | BEGINNING ACCOUNT VALUE 1/1/2018 | ENDING ACCOUNT VALUE 6/30/2018 | EXPENSES PAID DURING PERIOD* 1/1/2018 – 6/30/2018 | |||||||||
Class A | ||||||||||||
Actual | $1,000.00 | $998.60 | $5.95 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.84 | $6.01 | |||||||||
Class C | ||||||||||||
Actual | $1,000.00 | $995.50 | $9.65 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,015.13 | $9.74 | |||||||||
Class N | ||||||||||||
Actual | $1,000.00 | $1,000.40 | $4.46 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.33 | $4.51 | |||||||||
Class Y | ||||||||||||
Actual | $1,000.00 | $999.30 | $4.71 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.08 | $4.76 |
* | Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.20%, 1.95%, 0.90% and 0.95% for Class A, C, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), divided by 365 (to reflect the half-year period). |
| 10
MIROVA GLOBAL GREEN BOND FUND | BEGINNING ACCOUNT VALUE 1/1/2018 | ENDING ACCOUNT VALUE 6/30/2018 | EXPENSES PAID DURING PERIOD* 1/1/2018 – 6/30/2018 | |||||||||
Class A | ||||||||||||
Actual | $1,000.00 | $999.40 | $4.76 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.03 | $4.81 | |||||||||
Class N | ||||||||||||
Actual | $1,000.00 | $1,000.60 | $3.27 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.52 | $3.31 | |||||||||
Class Y | ||||||||||||
Actual | $1,000.00 | $1,000.50 | $3.47 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.32 | $3.51 |
* | Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.96%, 0.66% and 0.70% for Class A, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), divided by 365 (to reflect the half-year period). |
MIROVA GLOBAL SUSTAINABLE EQUITY FUND | BEGINNING ACCOUNT VALUE 1/1/2018 | ENDING ACCOUNT VALUE 6/30/2018 | EXPENSES PAID DURING PERIOD* 1/1/2018 – 6/30/2018 | |||||||||
Class A | ||||||||||||
Actual | $1,000.00 | $1,018.80 | $6.51 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.35 | $6.51 | |||||||||
Class C | ||||||||||||
Actual | $1,000.00 | $1,015.00 | $10.24 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,014.63 | $10.24 | |||||||||
Class N | ||||||||||||
Actual | $1,000.00 | $1,020.20 | $5.01 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.84 | $5.01 | |||||||||
Class Y | ||||||||||||
Actual | $1,000.00 | $1,020.20 | $5.26 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.59 | $5.26 |
* | Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.30%, 2.05%, 1.00% and 1.05% for Class A, C, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), divided by 365 (to reflect the half-year period). |
11 |
BOARD APPROVAL OF THE EXISTING ADVISORY AGREEMENTS
The Board of Trustees of the Trusts (the “Board”), including the Independent Trustees, considers matters bearing on each Fund’s advisory agreement (collectively, the “Agreements”) at most of its meetings throughout the year. Each year, usually in the spring, the Contract Review Committee of the Board meets to review the Agreements to determine whether to recommend that the full Board approve the continuation of the Agreements, typically for an additional one-year period. After the Contract Review Committee has made its recommendation, the full Board, including the Independent Trustees, determines whether to approve the continuation of the Agreements.
In connection with these meetings, the Trustees receive materials that the Funds’ investment advisers (the “Advisers”) believe to be reasonably necessary for the Trustees to evaluate the Agreements. These materials generally include, among other items, (i) information on the investment performance of the Funds and the performance of peer groups of funds and the Funds’ performance benchmarks, (ii) information on the Funds’ advisory fees and other expenses, including information comparing the Funds’ advisory fees to the fees charged to institutional accounts, with similar strategies managed by the Advisers, if any, and to those of peer groups of funds and information about any applicable expense caps and/or fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Advisers and (v) information obtained through the completion by the Advisers of a questionnaire distributed on behalf of the Trustees. The Board, including the Independent Trustees, also considers other matters such as (i) each Adviser’s financial results and financial condition, (ii) each Fund’s investment objective and strategies and the size, education and experience of the Advisers’ respective investment staffs and their use of technology, external research and trading cost measurement tools, (iii) arrangements in respect of the distribution of the Funds’ shares and the related costs, (iv) the allocation of the Funds’ brokerage, if any, including, to the extent applicable, the use of “soft” commission dollars to pay for research and other similar services, (v) the resources devoted to, and the record of compliance with, the Funds’ investment policies and restrictions, policies on personal securities transactions and other compliance policies, (vi) each Adviser’s policies and procedures relating to, among other things, compliance, trading and best execution, proxy voting and valuation, (vii) information about amounts invested by the Funds’ portfolio managers in the Funds or in similar accounts that they manage and (viii) the general economic outlook with particular emphasis on the mutual fund industry. Throughout the process, the Trustees are afforded the opportunity to ask questions of and request additional materials from the Advisers.
In addition to the materials requested by the Trustees in connection with their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board that provide detailed information about the Funds’ investment performance and the fees charged to the Funds for advisory and other services. This information generally includes, among other things, an internal performance rating for each Fund based on agreed-upon criteria, graphs showing each Fund’s performance and expense differentials against each Fund’s peer group/category, where available, performance ratings provided by a third-party, where available, total return
| 12
information for various periods, and third-party performance rankings for various periods comparing a Fund against similarly categorized funds. The portfolio management team for each Fund or other representatives of the Advisers make periodic presentations to the Contract Review Committee and/or the full Board, and Funds identified as presenting possible performance concerns may be subject to more frequent Board or Committee presentations and reviews. In addition, each quarter the Trustees are provided with detailed statistical information about each Fund’s portfolio. The Trustees also receive periodic updates between meetings.
The Board most recently approved the continuation of the Agreements for a one-year period at its meeting held in June 2018. In considering whether to approve the continuation of the Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.
The nature, extent and quality of the services provided to the Funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by the Advisers and their affiliates to the Funds and the resources dedicated to the Funds by the Advisers and their affiliates.
The Trustees considered not only the advisory services provided by the Advisers to the Funds, but also the monitoring and oversight services provided by Natixis Advisors, L.P. (“Natixis Advisors”). They also considered the administrative and shareholder services provided by Natixis Advisors and its affiliates to the Funds.
For each Fund, the Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds that offers shareholders the right to exchange shares of one type of fund for shares of another type of fund, and provides a variety of fund and shareholder services.
After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the nature, extent and quality of services provided supported the renewal of the Agreements.
Investment performance of the Funds and the Advisers. As noted above, the Trustees received information about the performance of the Funds over various time periods, including information that compared the performance of the Funds to the performance of peer groups and categories of funds and the Funds’ respective performance benchmarks. In addition, for any Funds with more than one year’s performance, the Trustees reviewed data prepared by an independent third party that analyzed the performance of the Funds using a variety of performance metrics, including metrics that measured the performance of the Funds on a risk adjusted basis.
13 |
The Board noted that, through December 31, 2017, each Fund’s one-, three- and five-year performance, as applicable, stated as percentile rankings within categories selected by the independent third-party data provider, was as follows (where the best performance would be in the first percentile of its category):
One-Year | Three-Year | Five-Year | ||||||||||
Gateway Fund | 32 | % | 30 | % | 80 | % | ||||||
Gateway Equity Call Premium Fund | 11 | % | 6 | % | N/A | |||||||
Mirova Global Sustainable Equity Fund | 17 | % | N/A | N/A | ||||||||
Mirova Global Green Bond Fund | N/A | N/A | N/A |
In the case of each Fund that had performance that lagged that of a relevant category median as determined by the independent third-party for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Agreements. These factors included the following: (1) that the underperformance was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Adviser that were reasonable and consistent with the Fund’s investment objective and policies; (2) that the Fund’s more recent performance was competitive when compared to the relevant performance category; and (3) that the Fund’s performance had been consistent with its investment objective of earning positive returns while meaningfully reducing equity market volatility and mitigating downside risk, such that its performance relative to its category would be expected to lag in certain market conditions. With respect to Mirova Global Green Bond Fund, which commenced operations on February 28, 2017 and thus had not yet been in operation for a full year as of December 31, 2017, one-, three-, and five-year performance was not available, although the Board did consider the Fund’s performance over other periods.
The Trustees also considered each Adviser’s performance and reputation generally, the performance of the fund family generally, and the historical responsiveness of the Advisers to Trustee concerns about performance and the willingness of the Advisers to take steps intended to improve performance.
After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the performance of the Funds and the Advisers and/or other relevant factors supported the renewal of the Agreements.
The costs of the services to be provided and profits to be realized by the Advisers and their affiliates from their respective relationships with the Funds. The Trustees considered the fees charged to the Funds for advisory and administrative services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Advisers to comparable accounts (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to
| 14
effectively manage mutual fund assets and the greater regulatory costs associated with the management of such assets. In evaluating each Fund’s advisory fee, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund, as well as the need for the Advisers to offer competitive compensation and the potential need to expend additional resources to the extent the Fund grows in size. The Trustees considered that over the past several years, management had made recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense caps for various funds in the fund family. They noted that the Funds have expense caps in place, and they considered the amounts waived or reimbursed by the Advisers for the Funds under their caps.
The Trustees noted that the Mirova Global Sustainable Equity Fund had an advisory fee rate that was above the median of a peer group of funds. In this regard, the Trustees considered the factors that management believed justified such relatively higher advisory fee rate, including: (1) that management believes the fee rate is reasonable considering that the profitability from the advisory and administrative relationships with the Fund was still negative; and (2) that the Fund’s advisory fee was not significantly above the peer group median.
The Trustees also considered the compensation directly or indirectly received by the Advisers and their affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Advisers’ and their affiliates’ relationships with the Funds, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management about the effect of distribution costs and changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser compensation or profitability were issues, the performance of the Funds, the expense levels of the Funds, whether the Advisers had implemented breakpoints and/or expense caps with respect to such Funds and the overall profit margin of Natixis Investment Managers compared to that of certain other investment managers for which such data was available.
After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the advisory fees charged to each of the Funds were fair and reasonable, and that the costs of these services generally and the related profitability of the Advisers and their affiliates in respect of their relationships with the Funds supported the renewal of the Agreements.
Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Adviser and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense caps. The Trustees also discussed with management the factors considered with respect to the implementation of breakpoints in investment advisory fees or expense caps for certain funds. Management explained that a number of factors are taken into account in considering the possible implementation of breakpoints or an expense cap for a fund, including, among other things, factors such as a fund’s assets, the projected growth of a fund, projected profitability and a fund’s fees and performance. With respect to economies of scale, the Trustees noted that the Gateway Fund had breakpoints in its advisory fee and
15 |
that each Fund was subject to an expense cap. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and on a relative basis) and the profitability to the Advisers and their affiliates of their relationships with the Funds, as discussed above.
After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the extent to which economies of scale were shared with the Funds supported the renewal of the Agreements.
The Trustees also considered other factors, which included but were not limited to the following:
· | The effect of recent market and economic events on the performance, asset levels and expense ratios of each Fund. |
· | Whether each Fund has operated in accordance with its investment objective and the Fund’s record of compliance with its investment restrictions, and the compliance programs of the Funds and the Advisers. They also considered the compliance-related resources the Advisers and their affiliates were providing to the Funds. |
· | So-called “fallout benefits” to the Advisers, such as the engagement of affiliates of the Advisers to provide distribution and administrative services to the Funds, and the benefits of research made available to the Advisers by reason of brokerage commissions (if any) generated by the Funds’ securities transactions. The Trustees also considered the benefits to the parent company of Natixis Advisors from the retention of the Advisers. The Trustees considered the possible conflicts of interest associated with these fallout and other benefits, and the reporting, disclosure and other processes in place to disclose and monitor such possible conflicts of interest. |
· | The Trustees’ review and discussion of the Funds’ advisory arrangements in prior years, and management’s record of responding to Trustee concerns raised during the year and in prior years. |
Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Trustees, including the Independent Trustees, concluded that each of the existing Agreements should be continued through June 30, 2019.
| 16
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund
Shares | Description | Value (†) | ||||||
Common Stocks — 97.5% of Net Assets | ||||||||
Aerospace & Defense — 2.5% |
| |||||||
250,221 | Boeing Co. (The)(a) | $ | 83,951,648 | |||||
57,682 | Huntington Ingalls Industries, Inc.(a) | 12,504,881 | ||||||
252,454 | Raytheon Co.(a) | 48,769,064 | ||||||
42,306 | TransDigm Group, Inc.(a) | 14,601,493 | ||||||
392,820 | United Technologies Corp.(a) | 49,114,284 | ||||||
|
| |||||||
208,941,370 | ||||||||
|
| |||||||
Air Freight & Logistics — 0.5% |
| |||||||
394,897 | United Parcel Service, Inc., Class B(a) | 41,949,908 | ||||||
|
| |||||||
Airlines — 0.4% |
| |||||||
107,742 | Alaska Air Group, Inc.(a) | 6,506,539 | ||||||
330,509 | American Airlines Group, Inc.(a) | 12,546,122 | ||||||
266,319 | JetBlue Airways Corp.(a)(b) | 5,054,735 | ||||||
169,380 | United Continental Holdings, Inc.(a)(b) | 11,810,867 | ||||||
|
| |||||||
35,918,263 | ||||||||
|
| |||||||
Auto Components — 0.1% |
| |||||||
36,398 | Adient PLC | 1,790,418 | ||||||
45,405 | Autoliv, Inc.(a) | 6,502,904 | ||||||
52,486 | Cooper Tire & Rubber Co.(a) | 1,380,382 | ||||||
|
| |||||||
9,673,704 | ||||||||
|
| |||||||
Automobiles — 0.4% |
| |||||||
2,457,532 | Ford Motor Co.(a) | 27,204,879 | ||||||
15,980 | Tesla, Inc.(a)(b) | 5,480,341 | ||||||
|
| |||||||
32,685,220 | ||||||||
|
| |||||||
Banks — 6.2% |
| |||||||
334,523 | Associated Banc-Corp(a) | 9,132,478 | ||||||
3,991,854 | Bank of America Corp.(a) | 112,530,364 | ||||||
1,103,110 | Citigroup, Inc.(a) | 73,820,121 | ||||||
1,252,979 | Huntington Bancshares, Inc.(a) | 18,493,970 | ||||||
1,465,103 | JPMorgan Chase & Co.(a) | 152,663,733 | ||||||
332,605 | Old National Bancorp(a) | 6,186,453 | ||||||
64,746 | Signature Bank(a)(b) | 8,279,718 | ||||||
44,605 | SVB Financial Group(a)(b) | 12,880,140 | ||||||
807,344 | U.S. Bancorp(a) | 40,383,347 | ||||||
1,678,887 | Wells Fargo & Co.(a) | 93,077,495 | ||||||
|
| |||||||
527,447,819 | ||||||||
|
| |||||||
Beverages — 2.0% |
| |||||||
1,727,514 | Coca-Cola Co. (The)(a) | 75,768,764 | ||||||
241,521 | Monster Beverage Corp.(a)(b) | 13,839,154 | ||||||
703,567 | PepsiCo, Inc.(a) | 76,597,339 | ||||||
|
| |||||||
166,205,257 | ||||||||
|
| |||||||
Biotechnology — 3.0% |
| |||||||
606,162 | AbbVie, Inc.(a) | 56,160,909 | ||||||
125,445 | Alexion Pharmaceuticals, Inc.(a)(b) | 15,573,997 |
See accompanying notes to financial statements.
17 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Biotechnology — continued | ||||||||
298,196 | Amgen, Inc.(a) | $ | 55,044,000 | |||||
93,835 | Biogen, Inc.(a)(b) | 27,234,670 | ||||||
358,090 | Celgene Corp.(a)(b) | 28,439,508 | ||||||
533,487 | Gilead Sciences, Inc.(a) | 37,792,219 | ||||||
46,571 | Seattle Genetics, Inc.(a)(b) | 3,091,849 | ||||||
48,686 | Shire PLC, Sponsored ADR(a) | 8,218,197 | ||||||
25,386 | TESARO, Inc.(a)(b) | 1,128,915 | ||||||
118,760 | Vertex Pharmaceuticals, Inc.(a)(b) | 20,184,449 | ||||||
|
| |||||||
252,868,713 | ||||||||
|
| |||||||
Building Products — 0.4% |
| |||||||
235,129 | Fortune Brands Home & Security, Inc.(a) | 12,624,076 | ||||||
401,198 | Johnson Controls International PLC(a) | 13,420,073 | ||||||
37,467 | Lennox International, Inc.(a) | 7,499,020 | ||||||
|
| |||||||
33,543,169 | ||||||||
|
| |||||||
Capital Markets — 2.3% |
| |||||||
630,391 | Charles Schwab Corp. (The)(a) | 32,212,980 | ||||||
174,273 | CME Group, Inc.(a) | 28,566,830 | ||||||
173,506 | Eaton Vance Corp.(a) | 9,055,278 | ||||||
176,351 | Goldman Sachs Group, Inc. (The)(a) | 38,897,740 | ||||||
393,785 | Intercontinental Exchange, Inc.(a) | 28,962,887 | ||||||
114,865 | Legg Mason, Inc.(a) | 3,989,261 | ||||||
742,584 | Morgan Stanley(a) | 35,198,482 | ||||||
68,462 | MSCI, Inc.(a) | 11,325,669 | ||||||
114,987 | TD Ameritrade Holding Corp.(a) | 6,297,838 | ||||||
112,365 | Waddell & Reed Financial, Inc., Class A | 2,019,199 | ||||||
|
| |||||||
196,526,164 | ||||||||
|
| |||||||
Chemicals — 1.8% |
| |||||||
17,782 | AdvanSix, Inc.(a)(b) | 651,355 | ||||||
115,188 | Ashland Global Holdings, Inc.(a) | 9,005,398 | ||||||
65,262 | Celanese Corp., Series A(a) | 7,247,998 | ||||||
53,140 | Chemours Co. (The)(a) | 2,357,290 | ||||||
1,044,867 | DowDuPont, Inc.(a) | 68,877,632 | ||||||
168,176 | Eastman Chemical Co.(a) | 16,810,873 | ||||||
36,897 | Ingevity Corp.(a)(b) | 2,983,491 | ||||||
211,503 | LyondellBasell Industries NV, Class A(a) | 23,233,604 | ||||||
77,861 | Olin Corp.(a) | 2,236,168 | ||||||
171,746 | RPM International, Inc.(a) | 10,016,227 | ||||||
236,738 | Valvoline, Inc.(a) | 5,106,439 | ||||||
|
| |||||||
148,526,475 | ||||||||
|
| |||||||
Commercial Services & Supplies — 0.5% |
| |||||||
93,918 | Copart, Inc.(a)(b) | 5,312,002 | ||||||
100,997 | Waste Connections, Inc.(a) | 7,603,054 | ||||||
317,652 | Waste Management, Inc.(a) | 25,837,814 | ||||||
|
| |||||||
38,752,870 | ||||||||
|
|
See accompanying notes to financial statements.
| 18
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Communications Equipment — 1.3% |
| |||||||
12,752 | Arista Networks, Inc.(a)(b) | $ | 3,283,513 | |||||
1,960,270 | Cisco Systems, Inc.(a) | 84,350,418 | ||||||
115,934 | Motorola Solutions, Inc.(a) | 13,491,240 | ||||||
23,152 | Palo Alto Networks, Inc.(a)(b) | 4,757,041 | ||||||
|
| |||||||
105,882,212 | ||||||||
|
| |||||||
Consumer Finance — 0.7% | ||||||||
121,623 | Ally Financial, Inc.(a) | 3,195,036 | ||||||
385,280 | American Express Co.(a) | 37,757,440 | ||||||
273,240 | Discover Financial Services(a) | 19,238,829 | ||||||
|
| |||||||
60,191,305 | ||||||||
|
| |||||||
Containers & Packaging — 0.4% | ||||||||
120,641 | Avery Dennison Corp.(a) | 12,317,446 | ||||||
135,652 | Sonoco Products Co.(a) | 7,121,730 | ||||||
228,840 | WestRock Co.(a) | 13,048,457 | ||||||
|
| |||||||
32,487,633 | ||||||||
|
| |||||||
Distributors — 0.2% | ||||||||
149,114 | Genuine Parts Co.(a) | 13,687,174 | ||||||
|
| |||||||
Diversified Financial Services — 1.8% | ||||||||
823,996 | Berkshire Hathaway, Inc., Class B(a)(b) | 153,798,853 | ||||||
|
| |||||||
Diversified Telecommunication Services — 2.0% | ||||||||
2,799,020 | AT&T, Inc.(a) | 89,876,532 | ||||||
1,496,481 | Verizon Communications, Inc.(a) | 75,287,959 | ||||||
|
| |||||||
165,164,491 | ||||||||
|
| |||||||
Electric Utilities — 1.6% | ||||||||
614,082 | Alliant Energy Corp.(a) | 25,987,950 | ||||||
671,022 | American Electric Power Co., Inc.(a) | 46,468,273 | ||||||
525,021 | Duke Energy Corp.(a) | 41,518,661 | ||||||
135,917 | Evergy, Inc.(a) | 7,631,740 | ||||||
87,627 | Hawaiian Electric Industries, Inc.(a) | 3,005,606 | ||||||
194,039 | OGE Energy Corp.(a) | 6,832,113 | ||||||
|
| |||||||
131,444,343 | ||||||||
|
| |||||||
Electrical Equipment — 0.5% | ||||||||
229,541 | Eaton Corp. PLC(a) | 17,155,894 | ||||||
341,749 | Emerson Electric Co.(a) | 23,628,526 | ||||||
36,487 | Hubbell, Inc.(a) | 3,858,135 | ||||||
73,808 | nVent Electric PLC(a)(b) | 1,852,581 | ||||||
|
| |||||||
46,495,136 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.4% | ||||||||
598,992 | Corning, Inc.(a) | 16,478,270 | ||||||
227,260 | TE Connectivity Ltd.(a) | 20,467,036 | ||||||
|
| |||||||
36,945,306 | ||||||||
|
| |||||||
Energy Equipment & Services — 1.0% | ||||||||
284,698 | Baker Hughes, a GE Co.(a) | 9,403,575 | ||||||
489,562 | Halliburton Co.(a) | 22,059,664 |
See accompanying notes to financial statements.
19 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Energy Equipment & Services — continued | ||||||||
302,209 | Patterson-UTI Energy, Inc.(a) | $ | 5,439,762 | |||||
719,157 | Schlumberger Ltd.(a) | 48,205,093 | ||||||
|
| |||||||
85,108,094 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.0% | ||||||||
565,838 | Walgreens Boots Alliance, Inc.(a) | 33,958,767 | ||||||
608,569 | Walmart, Inc.(a) | 52,123,935 | ||||||
|
| |||||||
86,082,702 | ||||||||
|
| |||||||
Food Products — 1.0% | ||||||||
85,855 | Bunge Ltd.(a) | 5,984,952 | ||||||
403,780 | Conagra Brands, Inc.(a) | 14,427,059 | ||||||
66,489 | Ingredion, Inc.(a) | 7,360,332 | ||||||
317,646 | Kraft Heinz Co. (The)(a) | 19,954,522 | ||||||
118,515 | Lamb Weston Holdings, Inc.(a) | 8,119,463 | ||||||
804,571 | Mondelez International, Inc., Class A(a) | 32,987,411 | ||||||
|
| |||||||
88,833,739 | ||||||||
|
| |||||||
Gas Utilities — 0.1% | ||||||||
90,899 | National Fuel Gas Co.(a) | 4,814,011 | ||||||
15,334 | WGL Holdings, Inc.(a) | 1,360,893 | ||||||
|
| |||||||
6,174,904 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 2.9% | ||||||||
763,559 | Abbott Laboratories(a) | 46,569,464 | ||||||
47,638 | Align Technology, Inc.(a)(b) | 16,298,865 | ||||||
338,269 | Baxter International, Inc.(a) | 24,977,783 | ||||||
802,569 | Boston Scientific Corp.(a)(b) | 26,244,006 | ||||||
292,284 | Hologic, Inc.(a)(b) | 11,618,289 | ||||||
66,055 | Intuitive Surgical, Inc.(a)(b) | 31,605,997 | ||||||
861,635 | Medtronic PLC(a) | 73,764,572 | ||||||
106,088 | ResMed, Inc.(a) | 10,988,595 | ||||||
24,419 | Teleflex, Inc.(a) | 6,549,420 | ||||||
|
| |||||||
248,616,991 | ||||||||
|
| |||||||
Health Care Providers & Services — 3.2% | ||||||||
210,364 | Aetna, Inc.(a) | 38,601,794 | ||||||
151,540 | Anthem, Inc.(a) | 36,071,066 | ||||||
425,320 | CVS Health Corp.(a) | 27,369,342 | ||||||
308,783 | Express Scripts Holding Co.(a)(b) | 23,841,136 | ||||||
163,885 | HCA Healthcare, Inc.(a) | 16,814,601 | ||||||
164,011 | Patterson Cos., Inc.(a) | 3,718,129 | ||||||
107,436 | Quest Diagnostics, Inc.(a) | 11,811,514 | ||||||
429,195 | UnitedHealth Group, Inc.(a) | 105,298,701 | ||||||
71,490 | Universal Health Services, Inc., Class B(a) | 7,966,846 | ||||||
|
| |||||||
271,493,129 | ||||||||
|
| |||||||
Health Care Technology — 0.0% | ||||||||
47,158 | Veeva Systems, Inc., Class A(a)(b) | 3,624,564 | ||||||
|
|
See accompanying notes to financial statements.
| 20
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Hotels, Restaurants & Leisure — 1.6% | ||||||||
33,735 | Domino’s Pizza, Inc.(a) | $ | 9,519,005 | |||||
92,305 | Hilton Grand Vacations, Inc.(a)(b) | 3,202,983 | ||||||
241,118 | Hilton Worldwide Holdings, Inc.(a) | 19,086,901 | ||||||
59,763 | Las Vegas Sands Corp.(a) | 4,563,503 | ||||||
398,158 | McDonald’s Corp.(a) | 62,387,377 | ||||||
82,034 | Melco Resorts & Entertainment Ltd., Sponsored ADR(a) | 2,296,952 | ||||||
401,803 | MGM Resorts International(a) | 11,664,341 | ||||||
91,903 | Restaurant Brands International, Inc.(a) | 5,541,751 | ||||||
39,919 | Vail Resorts, Inc.(a) | 10,945,391 | ||||||
401,168 | Wendy’s Co. (The)(a) | 6,892,066 | ||||||
|
| |||||||
136,100,270 | ||||||||
|
| |||||||
Household Durables — 0.4% | ||||||||
327,842 | Newell Brands, Inc.(a) | 8,455,045 | ||||||
2,654 | NVR, Inc.(a)(b) | 7,883,309 | ||||||
286,997 | Toll Brothers, Inc.(a) | 10,616,019 | ||||||
27,819 | Tupperware Brands Corp.(a) | 1,147,255 | ||||||
52,559 | Whirlpool Corp.(a) | 7,685,703 | ||||||
|
| |||||||
35,787,331 | ||||||||
|
| |||||||
Household Products — 1.4% | ||||||||
582,205 | Colgate-Palmolive Co.(a) | 37,732,706 | ||||||
1,061,719 | Procter & Gamble Co. (The)(a) | 82,877,785 | ||||||
|
| |||||||
120,610,491 | ||||||||
|
| |||||||
Industrial Conglomerates — 1.9% | ||||||||
267,316 | 3M Co.(a) | 52,586,404 | ||||||
3,471,138 | General Electric Co.(a) | 47,242,188 | ||||||
429,021 | Honeywell International, Inc.(a) | 61,800,475 | ||||||
|
| |||||||
161,629,067 | ||||||||
|
| |||||||
Insurance — 2.1% | ||||||||
530,942 | Aflac, Inc.(a) | 22,841,125 | ||||||
266,008 | Allstate Corp. (The)(a) | 24,278,550 | ||||||
149,909 | American Financial Group, Inc.(a) | 16,089,733 | ||||||
482,754 | American International Group, Inc.(a) | 25,595,617 | ||||||
180,061 | Aon PLC(a) | 24,698,968 | ||||||
484,122 | Arch Capital Group Ltd.(a)(b) | 12,809,868 | ||||||
296,125 | Arthur J. Gallagher & Co.(a) | 19,331,040 | ||||||
121,715 | FNF Group(a) | 4,578,918 | ||||||
237,812 | Lincoln National Corp.(a) | 14,803,797 | ||||||
181,697 | XL Group Ltd.(a) | 10,165,947 | ||||||
|
| |||||||
175,193,563 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 4.2% | ||||||||
150,173 | Amazon.com, Inc.(a)(b) | 255,264,065 | ||||||
19,657 | Booking Holdings, Inc.(a)(b) | 39,846,508 | ||||||
163,837 | Netflix, Inc.(a)(b) | 64,130,717 | ||||||
|
| |||||||
359,241,290 | ||||||||
|
|
See accompanying notes to financial statements.
21 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Internet Software & Services — 5.7% | ||||||||
65,197 | Alphabet, Inc., Class A(a)(b) | $ | 73,619,800 | |||||
168,456 | Alphabet, Inc., Class C(a)(b) | 187,937,936 | ||||||
15,012 | Baidu, Inc., Sponsored ADR(a)(b) | 3,647,916 | ||||||
448,953 | eBay, Inc.(a)(b) | 16,279,036 | ||||||
939,392 | Facebook, Inc., Class A(a)(b) | 182,542,654 | ||||||
7,580 | MercadoLibre, Inc.(a) | 2,265,889 | ||||||
103,668 | VeriSign, Inc.(a)(b) | 14,246,057 | ||||||
40,793 | Zillow Group, Inc., Class C(a)(b) | 2,409,235 | ||||||
|
| |||||||
482,948,523 | ||||||||
|
| |||||||
IT Services — 3.9% | ||||||||
208,601 | Automatic Data Processing, Inc.(a) | 27,981,738 | ||||||
40,509 | Black Knight, Inc.(a)(b) | 2,169,257 | ||||||
124,578 | Broadridge Financial Solutions, Inc.(a) | 14,338,928 | ||||||
321,138 | Cognizant Technology Solutions Corp., Class A(a) | 25,366,691 | ||||||
235,256 | Fidelity National Information Services, Inc.(a) | 24,944,194 | ||||||
44,087 | FleetCor Technologies, Inc.(a)(b) | 9,286,926 | ||||||
389,246 | International Business Machines Corp.(a) | 54,377,666 | ||||||
192,336 | Paychex, Inc.(a) | 13,146,166 | ||||||
504,254 | PayPal Holdings, Inc.(a)(b) | 41,989,231 | ||||||
838,361 | Visa, Inc., Class A(a) | 111,040,914 | ||||||
379,264 | Western Union Co. (The)(a) | 7,710,437 | ||||||
|
| |||||||
332,352,148 | ||||||||
|
| |||||||
Leisure Products — 0.1% | ||||||||
405,813 | Mattel, Inc.(a) | 6,663,449 | ||||||
35,016 | Polaris Industries, Inc.(a) | 4,278,255 | ||||||
|
| |||||||
10,941,704 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.2% | ||||||||
70,877 | Illumina, Inc.(a)(b) | 19,795,237 | ||||||
|
| |||||||
Machinery — 1.6% | ||||||||
285,844 | Caterpillar, Inc.(a) | 38,780,456 | ||||||
116,361 | Cummins, Inc.(a) | 15,476,013 | ||||||
170,807 | Deere & Co.(a) | 23,878,819 | ||||||
131,499 | Parker Hannifin Corp.(a) | 20,494,119 | ||||||
180,965 | Pentair PLC(a) | 7,615,007 | ||||||
59,403 | Snap-on, Inc.(a) | 9,547,250 | ||||||
143,487 | Stanley Black & Decker, Inc.(a) | 19,056,509 | ||||||
63,479 | Timken Co. (The)(a) | 2,764,510 | ||||||
|
| |||||||
137,612,683 | ||||||||
|
| |||||||
Media — 2.0% | ||||||||
1,897,476 | Comcast Corp., Class A(a) | 62,256,188 | ||||||
103,860 | Liberty Broadband Corp., Class C(a)(b) | 7,864,279 | ||||||
180,523 | Liberty Global PLC, Series C(a)(b) | 4,803,717 | ||||||
83,437 | Liberty Latin America Ltd., Class C(a)(b) | 1,617,009 | ||||||
222,965 | News Corp., Class B(a) | 3,533,995 | ||||||
189,560 | Omnicom Group, Inc.(a) | 14,457,741 |
See accompanying notes to financial statements.
| 22
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Media — continued | ||||||||
1,323,068 | Sirius XM Holdings, Inc.(a) | $ | 8,957,170 | |||||
668,287 | Walt Disney Co. (The)(a) | 70,043,161 | ||||||
|
| |||||||
173,533,260 | ||||||||
|
| |||||||
Metals & Mining — 0.2% | ||||||||
171,684 | Southern Copper Corp.(a) | 8,046,829 | ||||||
206,058 | Steel Dynamics, Inc.(a) | 9,468,365 | ||||||
51,012 | Worthington Industries, Inc. | 2,140,974 | ||||||
|
| |||||||
19,656,168 | ||||||||
|
| |||||||
Multi-Utilities — 1.4% | ||||||||
401,532 | Ameren Corp.(a) | 24,433,222 | ||||||
609,976 | CenterPoint Energy, Inc.(a) | 16,902,435 | ||||||
273,147 | Consolidated Edison, Inc.(a) | 21,300,003 | ||||||
374,870 | Public Service Enterprise Group, Inc.(a) | 20,295,462 | ||||||
541,369 | WEC Energy Group, Inc.(a) | 34,999,506 | ||||||
|
| |||||||
117,930,628 | ||||||||
|
| |||||||
Multiline Retail — 0.4% | ||||||||
127,295 | Nordstrom, Inc.(a) | 6,591,335 | ||||||
364,432 | Target Corp.(a) | 27,740,564 | ||||||
|
| |||||||
34,331,899 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 5.2% | ||||||||
126,723 | Cheniere Energy, Inc.(a)(b) | 8,261,072 | ||||||
775,644 | Chevron Corp.(a) | 98,064,671 | ||||||
202,115 | Concho Resources, Inc.(a)(b) | 27,962,610 | ||||||
708,041 | ConocoPhillips(a) | 49,293,815 | ||||||
260,757 | Continental Resources, Inc.(a)(b) | 16,886,623 | ||||||
1,622,420 | Exxon Mobil Corp.(a) | 134,222,807 | ||||||
470,790 | Gulfport Energy Corp.(a)(b) | 5,917,830 | ||||||
88,456 | HollyFrontier Corp.(a) | 6,053,044 | ||||||
463,874 | Occidental Petroleum Corp.(a) | 38,816,976 | ||||||
279,397 | ONEOK, Inc.(a) | 19,510,293 | ||||||
314,511 | Phillips 66(a) | 35,322,731 | ||||||
|
| |||||||
440,312,472 | ||||||||
|
| |||||||
Personal Products — 0.0% | ||||||||
59,560 | Herbalife Nutrition Ltd.(a)(b) | 3,199,563 | ||||||
|
| |||||||
Pharmaceuticals — 4.4% | ||||||||
180,342 | Allergan PLC(a) | 30,066,618 | ||||||
612,235 | Bristol-Myers Squibb Co.(a) | 33,881,085 | ||||||
388,694 | Eli Lilly & Co.(a) | 33,167,259 | ||||||
27,123 | Jazz Pharmaceuticals PLC(a)(b) | 4,673,293 | ||||||
1,016,415 | Johnson & Johnson(a) | 123,331,796 | ||||||
1,046,762 | Merck & Co., Inc.(a) | 63,538,454 | ||||||
2,233,297 | Pfizer, Inc.(a) | 81,024,015 | ||||||
|
| |||||||
369,682,520 | ||||||||
|
|
See accompanying notes to financial statements.
23 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Professional Services — 0.4% | ||||||||
53,481 | Dun & Bradstreet Corp. (The)(a) | $ | 6,559,444 | |||||
50,995 | ManpowerGroup, Inc.(a) | 4,388,630 | ||||||
195,964 | Verisk Analytics, Inc.(a)(b) | 21,093,565 | ||||||
|
| |||||||
32,041,639 | ||||||||
|
| |||||||
REITs – Apartments — 0.5% | ||||||||
192,021 | Camden Property Trust(a) | 17,498,874 | ||||||
617,097 | UDR, Inc.(a) | 23,165,821 | ||||||
|
| |||||||
40,664,695 | ||||||||
|
| |||||||
REITs – Diversified — 0.2% | ||||||||
179,401 | Digital Realty Trust, Inc.(a) | 20,017,564 | ||||||
|
| |||||||
REITs – Health Care — 0.4% | ||||||||
260,504 | Healthcare Realty Trust, Inc.(a) | 7,575,456 | ||||||
206,117 | Sabra Health Care REIT, Inc.(a) | 4,478,923 | ||||||
265,800 | Senior Housing Properties Trust(a) | 4,808,322 | ||||||
310,797 | Ventas, Inc.(a) | 17,699,889 | ||||||
|
| |||||||
34,562,590 | ||||||||
|
| |||||||
REITs – Hotels — 0.1% | ||||||||
159,507 | Park Hotels & Resorts, Inc.(a) | 4,885,699 | ||||||
|
| |||||||
REITs – Mortgage — 0.3% | ||||||||
644,819 | AGNC Investment Corp.(a) | 11,987,185 | ||||||
1,234,994 | Annaly Capital Management, Inc.(a) | 12,708,088 | ||||||
|
| |||||||
24,695,273 | ||||||||
|
| |||||||
REITs – Office Property — 0.3% |
| |||||||
217,750 | Kilroy Realty Corp.(a) | 16,470,610 | ||||||
276,737 | Mack-Cali Realty Corp.(a) | 5,612,226 | ||||||
|
| |||||||
22,082,836 | ||||||||
|
| |||||||
REITs – Shopping Centers — 0.3% |
| |||||||
354,094 | Regency Centers Corp.(a) | 21,982,156 | ||||||
|
| |||||||
REITs – Storage — 0.2% |
| |||||||
178,201 | Extra Space Storage, Inc.(a) | 17,786,242 | ||||||
|
| |||||||
REITs – Warehouse/Industrials — 0.4% |
| |||||||
664,704 | Duke Realty Corp.(a) | 19,296,357 | ||||||
271,168 | Liberty Property Trust(a) | 12,020,878 | ||||||
|
| |||||||
31,317,235 | ||||||||
|
| |||||||
Road & Rail — 0.9% |
| |||||||
146,168 | Avis Budget Group, Inc.(a)(b) | 4,750,460 | ||||||
63,846 | Canadian Pacific Railway Ltd.(a) | 11,685,095 | ||||||
581,003 | CSX Corp.(a) | 37,056,371 | ||||||
167,459 | Hertz Global Holdings, Inc.(a)(b) | 2,568,821 | ||||||
111,584 | Old Dominion Freight Line, Inc.(a) | 16,621,553 | ||||||
|
| |||||||
72,682,300 | ||||||||
|
|
See accompanying notes to financial statements.
| 24
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Semiconductors & Semiconductor Equipment — 4.1% |
| |||||||
422,682 | Advanced Micro Devices, Inc.(a)(b) | $ | 6,336,003 | |||||
231,380 | Analog Devices, Inc.(a) | 22,193,970 | ||||||
700,989 | Applied Materials, Inc.(a) | 32,378,682 | ||||||
1,773,743 | Intel Corp.(a) | 88,172,765 | ||||||
172,347 | Microchip Technology, Inc.(a) | 15,674,960 | ||||||
417,907 | Micron Technology, Inc.(a)(b) | 21,915,043 | ||||||
238,186 | NVIDIA Corp.(a) | 56,426,263 | ||||||
594,824 | QUALCOMM, Inc.(a) | 33,381,523 | ||||||
156,838 | Skyworks Solutions, Inc.(a) | 15,158,393 | ||||||
221,363 | Teradyne, Inc.(a) | 8,427,289 | ||||||
453,301 | Texas Instruments, Inc.(a) | 49,976,435 | ||||||
|
| |||||||
350,041,326 | ||||||||
|
| |||||||
Software — 6.2% |
| |||||||
380,288 | Activision Blizzard, Inc.(a) | 29,023,580 | ||||||
256,488 | Adobe Systems, Inc.(a)(b) | 62,534,339 | ||||||
78,121 | ANSYS, Inc.(a)(b) | 13,607,116 | ||||||
383,459 | Cadence Design Systems, Inc.(a)(b) | 16,607,609 | ||||||
54,410 | Check Point Software Technologies Ltd.(a)(b) | 5,314,769 | ||||||
36,215 | Dell Technologies, Inc., Class V(a)(b) | 3,063,065 | ||||||
78,463 | Fortinet, Inc.(a)(b) | 4,898,445 | ||||||
2,903,845 | Microsoft Corp.(a) | 286,348,155 | ||||||
367,409 | Nuance Communications, Inc.(a)(b) | 5,101,474 | ||||||
1,255,543 | Oracle Corp.(a) | 55,319,225 | ||||||
102,299 | PTC, Inc.(a)(b) | 9,596,669 | ||||||
41,728 | ServiceNow, Inc.(a)(b) | 7,196,828 | ||||||
347,387 | Symantec Corp.(a) | 7,173,542 | ||||||
58,429 | Take-Two Interactive Software, Inc.(a)(b) | 6,915,656 | ||||||
49,369 | VMware, Inc., Class A(a)(b) | 7,255,762 | ||||||
44,172 | Workday, Inc., Class A(a)(b) | 5,350,113 | ||||||
|
| |||||||
525,306,347 | ||||||||
|
| |||||||
Specialty Retail — 2.5% |
| |||||||
261,528 | American Eagle Outfitters, Inc.(a) | 6,080,526 | ||||||
112,219 | Foot Locker, Inc.(a) | 5,908,330 | ||||||
178,688 | Gap, Inc. (The)(a) | 5,787,704 | ||||||
533,384 | Home Depot, Inc. (The)(a) | 104,063,218 | ||||||
119,254 | L Brands, Inc.(a) | 4,398,088 | ||||||
410,580 | Lowe’s Cos., Inc.(a) | 39,239,131 | ||||||
101,550 | Tiffany & Co.(a) | 13,363,980 | ||||||
337,121 | TJX Cos., Inc. (The)(a) | 32,087,177 | ||||||
|
| |||||||
210,928,154 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 4.1% |
| |||||||
1,855,581 | Apple, Inc.(a) | 343,486,599 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.5% |
| |||||||
74,951 | Lululemon Athletica, Inc.(a)(b) | 9,357,632 | ||||||
212,485 | Michael Kors Holdings Ltd.(a)(b) | 14,151,501 |
See accompanying notes to financial statements.
25 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Textiles, Apparel & Luxury Goods — continued | ||||||||
681,244 | Under Armour, Inc., Class A(a)(b) | $ | 15,314,365 | |||||
108,010 | Under Armour, Inc., Class C(b) | 2,276,851 | ||||||
|
| |||||||
41,100,349 | ||||||||
|
| |||||||
Tobacco — 1.0% |
| |||||||
675,278 | Altria Group, Inc.(a) | 38,349,037 | ||||||
576,065 | Philip Morris International, Inc.(a) | 46,511,488 | ||||||
76,584 | Vector Group Ltd.(a) | 1,461,223 | ||||||
|
| |||||||
86,321,748 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.1% |
| |||||||
73,209 | GATX Corp.(a) | 5,434,304 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.1% |
| |||||||
187,217 | Sprint Corp.(b) | 1,018,460 | ||||||
71,226 | T-Mobile US, Inc.(a)(b) | 4,255,754 | ||||||
|
| |||||||
5,274,214 | ||||||||
|
| |||||||
Total Common Stocks (Identified Cost $5,863,929,552) | 8,250,539,595 | |||||||
|
| |||||||
Total Purchased Options — 0.5% | ||||||||
(Identified Cost $58,506,688) (see detail below) | 44,901,715 | |||||||
|
| |||||||
Principal Amount | ||||||||
Short-Term Investments — 2.7% | ||||||||
$ | 227,046,370 | Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/29/2018 at 1.100% to be repurchased at $227,067,182 on 7/02/2018 collateralized by $65,000,000 U.S. Treasury Note, 1.125% due 8/31/2021 valued at $62,263,630; $19,950,000 U.S. Treasury Note, 2.125% due 8/15/2021 valued at $19,802,131; $2,005,000 U.S. Treasury Note, 1.375% due 12/31/2018 valued at $2,010,409; $149,325,000 U.S. Treasury Note, 2.000% due 12/31/2021 valued at $147,513,538 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $227,046,370) | 227,046,370 | |||||
|
| |||||||
Total Investments — 100.7% (Identified Cost $6,149,482,610) | 8,522,487,680 | |||||||
Other assets less liabilities — (0.7)% | (55,572,922 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 8,466,914,758 | ||||||
|
|
See accompanying notes to financial statements.
| 26
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Purchased Options — 0.5% |
| |||||||||||||||||||||||
Description | Expiration Date | Exercise Price | Contracts | Notional Amount | Cost | Value (†) | ||||||||||||||||||
Index Options — 0.5% |
| |||||||||||||||||||||||
S&P 500® Index, Put(b) | 07/20/2018 | 2,425 | 6,520 | $ | 1,772,377,240 | $ | 11,634,518 | $ | 1,467,000 | |||||||||||||||
S&P 500® Index, Put(b) | 08/17/2018 | 2,475 | 3,502 | 951,973,174 | 6,977,735 | 3,677,100 | ||||||||||||||||||
S&P 500® Index, Put(b) | 08/17/2018 | 2,500 | 3,593 | 976,710,341 | 7,230,912 | 4,329,565 | ||||||||||||||||||
S&P 500® Index, Put(b) | 08/17/2018 | 2,550 | 4,280 | 1,163,462,360 | 6,519,263 | 6,826,600 | ||||||||||||||||||
S&P 500® Index, Put(b) | 09/21/2018 | 2,475 | 4,334 | 1,178,141,558 | 10,044,045 | 9,079,730 | ||||||||||||||||||
S&P 500® Index, Put(b) | 09/21/2018 | 2,500 | 3,546 | 963,934,002 | 8,900,075 | 8,297,640 | ||||||||||||||||||
S&P 500® Index, Put(b) | 09/21/2018 | 2,525 | 4,284 | 1,164,549,708 | 7,200,140 | 11,224,080 | ||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total | $ | 58,506,688 | $ | 44,901,715 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Written Options — (0.8%) |
| |||||||||||||||||||||||
Description | Expiration Date | Exercise Price | Contracts | Notional Amount | Premiums (Received) | Value (†) | ||||||||||||||||||
Index Options — (0.8%) |
| |||||||||||||||||||||||
S&P 500® Index, Call | 07/13/2018 | 2,760 | (3,315 | ) | $ | (901,139,655 | ) | $ | (10,154,390 | ) | $ | (2,701,725 | ) | |||||||||||
S&P 500® Index, Call | 07/20/2018 | 2,700 | (3,426 | ) | (931,313,562 | ) | (25,686,435 | ) | (15,776,730 | ) | ||||||||||||||
S&P 500® Index, Call | 07/20/2018 | 2,725 | (3,178 | ) | (863,897,986 | ) | (15,636,185 | ) | (9,422,770 | ) | ||||||||||||||
S&P 500® Index, Call | 07/20/2018 | 2,775 | (3,445 | ) | (936,478,465 | ) | (14,115,888 | ) | (2,600,975 | ) | ||||||||||||||
S&P 500® Index, Call | 07/20/2018 | 2,800 | (3,334 | ) | (906,304,558 | ) | (8,660,065 | ) | (941,855 | ) | ||||||||||||||
S&P 500® Index, Call | 07/27/2018 | 2,740 | (3,405 | ) | (925,604,985 | ) | (9,417,243 | ) | (9,006,225 | ) | ||||||||||||||
S&P 500® Index, Call | 08/17/2018 | 2,700 | (3,133 | ) | (851,665,321 | ) | (26,622,667 | ) | (19,628,245 | ) | ||||||||||||||
S&P 500® Index, Call | 08/17/2018 | 2,775 | (3,427 | ) | (931,585,399 | ) | (16,098,332 | ) | (6,836,865 | ) | ||||||||||||||
S&P 500® Index, Call | 08/17/2018 | 2,800 | (3,396 | ) | (923,158,452 | ) | (12,726,510 | ) | (3,837,480 | ) | ||||||||||||||
|
|
|
| |||||||||||||||||||||
Total | $ | (139,117,715 | ) | $ | (70,752,870 | ) | ||||||||||||||||||
|
|
|
|
(†) | See Note 2 of Notes to Financial Statements. | |||
(a) | Security (or a portion thereof) has been pledged as collateral for open derivative contracts. | |||
(b) | Non-income producing security. | |||
ADR | An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States. | |||
REITs | Real Estate Investment Trusts |
See accompanying notes to financial statements.
27 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Fund – (continued)
Industry Summary at June 30, 2018 (Unaudited)
Banks | 6.2 | % | ||
Software | 6.2 | |||
Internet Software & Services | 5.7 | |||
Oil, Gas & Consumable Fuels | 5.2 | |||
Pharmaceuticals | 4.4 | |||
Internet & Direct Marketing Retail | 4.2 | |||
Semiconductors & Semiconductor Equipment | 4.1 | |||
Technology Hardware, Storage & Peripherals | 4.1 | |||
IT Services | 3.9 | |||
Health Care Providers & Services | 3.2 | |||
Biotechnology | 3.0 | |||
Health Care Equipment & Supplies | 2.9 | |||
Specialty Retail | 2.5 | |||
Aerospace & Defense | 2.5 | |||
Capital Markets | 2.3 | |||
Insurance | 2.1 | |||
Media | 2.0 | |||
Beverages | 2.0 | |||
Diversified Telecommunication Services | 2.0 | |||
Other Investments, less than 2% each | 29.5 | |||
Short-Term Investments | 2.7 | |||
|
| |||
Total Investments | 100.7 | |||
Other assets less liabilities (including open written options) | (0.7 | ) | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
See accompanying notes to financial statements.
| 28
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund
Shares | Description | Value (†) | ||||||
Common Stocks — 99.5% of Net Assets | ||||||||
Aerospace & Defense — 2.0% | ||||||||
1,830 | Boeing Co. (The)(a) | $ | 613,983 | |||||
420 | Huntington Ingalls Industries, Inc.(a) | 91,052 | ||||||
596 | KLX, Inc.(a)(b) | 42,852 | ||||||
1,254 | Lockheed Martin Corp.(a) | 370,469 | ||||||
895 | Rockwell Collins, Inc.(a) | 120,539 | ||||||
|
| |||||||
1,238,895 | ||||||||
|
| |||||||
Air Freight & Logistics — 0.7% | ||||||||
1,024 | FedEx Corp.(a) | 232,509 | ||||||
2,077 | United Parcel Service, Inc., Class B(a) | 220,640 | ||||||
|
| |||||||
453,149 | ||||||||
|
| |||||||
Airlines — 0.5% | ||||||||
323 | Alaska Air Group, Inc.(a) | 19,506 | ||||||
2,610 | Delta Air Lines, Inc.(a) | 129,299 | ||||||
2,323 | JetBlue Airways Corp.(a)(b) | 44,091 | ||||||
1,288 | United Continental Holdings, Inc.(a)(b) | 89,812 | ||||||
|
| |||||||
282,708 | ||||||||
|
| |||||||
Auto Components — 0.2% | ||||||||
437 | Adient PLC(a) | 21,496 | ||||||
393 | Lear Corp.(a) | 73,023 | ||||||
|
| |||||||
94,519 | ||||||||
|
| |||||||
Automobiles — 0.4% | ||||||||
5,873 | General Motors Co.(a) | 231,396 | ||||||
|
| |||||||
Banks — 6.3% | ||||||||
27,744 | Bank of America Corp.(a) | 782,103 | ||||||
7,943 | Citigroup, Inc.(a) | 531,546 | ||||||
1,756 | Comerica, Inc.(a) | 159,656 | ||||||
302 | East West Bancorp, Inc.(a) | 19,690 | ||||||
4,725 | Fifth Third Bancorp(a) | 135,607 | ||||||
483 | First Republic Bank(a) | 46,750 | ||||||
8,896 | Huntington Bancshares, Inc.(a) | 131,305 | ||||||
10,792 | JPMorgan Chase & Co.(a) | 1,124,526 | ||||||
148 | Signature Bank(a)(b) | 18,926 | ||||||
1,927 | SunTrust Banks, Inc.(a) | 127,221 | ||||||
229 | SVB Financial Group(a)(b) | 66,126 | ||||||
11,806 | Wells Fargo & Co.(a) | 654,525 | ||||||
|
| |||||||
3,797,981 | ||||||||
|
| |||||||
Beverages — 1.6% | ||||||||
9,356 | Coca-Cola Co. (The)(a) | 410,354 | ||||||
5,220 | PepsiCo, Inc.(a) | 568,302 | ||||||
|
| |||||||
978,656 | ||||||||
|
| |||||||
Biotechnology — 2.8% | ||||||||
4,731 | AbbVie, Inc.(a) | 438,327 | ||||||
302 | Alexion Pharmaceuticals, Inc.(a)(b) | 37,493 |
See accompanying notes to financial statements.
29 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Biotechnology — continued | ||||||||
209 | Alkermes PLC(b) | $ | 8,603 | |||||
272 | Alnylam Pharmaceuticals, Inc.(a)(b) | 26,789 | ||||||
2,210 | Amgen, Inc.(a) | 407,944 | ||||||
709 | Biogen, Inc.(a)(b) | 205,780 | ||||||
459 | BioMarin Pharmaceutical, Inc.(a)(b) | 43,238 | ||||||
3,025 | Celgene Corp.(a)(b) | 240,246 | ||||||
3,581 | Gilead Sciences, Inc.(a) | 253,678 | ||||||
932 | Incyte Corp.(a)(b) | 62,444 | ||||||
|
| |||||||
1,724,542 | ||||||||
|
| |||||||
Building Products — 0.6% | ||||||||
1,461 | A.O. Smith Corp.(a) | 86,418 | ||||||
1,791 | Fortune Brands Home & Security, Inc.(a) | 96,159 | ||||||
3,462 | Johnson Controls International PLC(a) | 115,804 | ||||||
330 | Lennox International, Inc.(a) | 66,049 | ||||||
|
| |||||||
364,430 | ||||||||
|
| |||||||
Capital Markets — 2.2% | ||||||||
4,185 | Bank of New York Mellon Corp. (The)(a) | 225,697 | ||||||
469 | BlackRock, Inc.(a) | 234,050 | ||||||
1,397 | Goldman Sachs Group, Inc. (The)(a) | 308,136 | ||||||
6,081 | Morgan Stanley(a) | 288,239 | ||||||
571 | MSCI, Inc.(a) | 94,461 | ||||||
1,207 | Raymond James Financial, Inc.(a) | 107,845 | ||||||
469 | SEI Investments Co.(a) | 29,322 | ||||||
1,022 | TD Ameritrade Holding Corp.(a) | 55,975 | ||||||
|
| |||||||
1,343,725 | ||||||||
|
| |||||||
Chemicals — 1.8% | ||||||||
342 | AdvanSix, Inc.(b) | 12,528 | ||||||
1,579 | Air Products & Chemicals, Inc.(a) | 245,898 | ||||||
686 | Albemarle Corp.(a) | 64,711 | ||||||
940 | Ashland Global Holdings, Inc.(a) | 73,489 | ||||||
569 | Celanese Corp., Series A(a) | 63,193 | ||||||
2,051 | Huntsman Corp.(a) | 59,889 | ||||||
547 | International Flavors & Fragrances, Inc.(a) | 67,806 | ||||||
1,156 | Nutrien Ltd.(a) | 62,863 | ||||||
1,051 | PPG Industries, Inc.(a) | 109,020 | ||||||
1,761 | Praxair, Inc.(a) | 278,502 | ||||||
2,795 | Valvoline, Inc.(a) | 60,288 | ||||||
|
| |||||||
1,098,187 | ||||||||
|
| |||||||
Commercial Services & Supplies — 0.4% | ||||||||
886 | Waste Connections, Inc.(a) | 66,698 | ||||||
2,413 | Waste Management, Inc.(a) | 196,274 | ||||||
|
| |||||||
262,972 | ||||||||
|
| |||||||
Communications Equipment — 1.2% | ||||||||
74 | Arista Networks, Inc.(a)(b) | 19,054 | ||||||
959 | ARRIS International PLC(a)(b) | 23,443 |
See accompanying notes to financial statements.
| 30
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Communications Equipment — continued | ||||||||
15,075 | Cisco Systems, Inc.(a) | $ | 648,677 | |||||
213 | Palo Alto Networks, Inc.(a)(b) | 43,765 | ||||||
|
| |||||||
734,939 | ||||||||
|
| |||||||
Consumer Finance — 1.1% | ||||||||
2,148 | Ally Financial, Inc.(a) | 56,428 | ||||||
2,883 | American Express Co.(a) | 282,534 | ||||||
2,260 | Capital One Financial Corp.(a) | 207,694 | ||||||
3,756 | Synchrony Financial(a) | 125,375 | ||||||
|
| |||||||
672,031 | ||||||||
|
| |||||||
Containers & Packaging — 0.5% | ||||||||
1,178 | Crown Holdings, Inc.(a)(b) | 52,727 | ||||||
2,475 | International Paper Co.(a) | 128,898 | ||||||
866 | Packaging Corp. of America(a) | 96,810 | ||||||
|
| |||||||
278,435 | ||||||||
|
| |||||||
Diversified Financial Services — 1.7% | ||||||||
5,569 | Berkshire Hathaway, Inc., Class B(a)(b) | 1,039,454 | ||||||
|
| |||||||
Diversified Telecommunication Services — 2.1% | ||||||||
22,114 | AT&T, Inc.(a) | 710,081 | ||||||
11,520 | Verizon Communications, Inc.(a) | 579,571 | ||||||
|
| |||||||
1,289,652 | ||||||||
|
| |||||||
Electric Utilities — 2.1% | ||||||||
8,882 | Alliant Energy Corp.(a) | 375,886 | ||||||
6,389 | American Electric Power Co., Inc.(a) | 442,438 | ||||||
1,083 | Evergy, Inc.(a) | 60,810 | ||||||
1,147 | OGE Energy Corp.(a) | 40,386 | ||||||
3,742 | PG&E Corp.(a) | 159,260 | ||||||
4,296 | Southern Co. (The)(a) | 198,948 | ||||||
|
| |||||||
1,277,728 | ||||||||
|
| |||||||
Electrical Equipment — 0.5% | ||||||||
355 | Acuity Brands, Inc.(a) | 41,134 | ||||||
3,652 | Emerson Electric Co.(a) | 252,499 | ||||||
|
| |||||||
293,633 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.3% | ||||||||
755 | Arrow Electronics, Inc.(a)(b) | 56,836 | ||||||
768 | Avnet, Inc.(a) | 32,940 | ||||||
4,491 | Flex Ltd.(a)(b) | 63,368 | ||||||
|
| |||||||
153,144 | ||||||||
|
| |||||||
Energy Equipment & Services — 0.9% | ||||||||
249 | McDermott International, Inc.(b) | 4,893 | ||||||
3,420 | National Oilwell Varco, Inc.(a) | 148,428 | ||||||
1,382 | Oceaneering International, Inc.(a) | 35,186 | ||||||
5,115 | Schlumberger Ltd.(a) | 342,858 | ||||||
|
| |||||||
531,365 | ||||||||
|
|
See accompanying notes to financial statements.
31 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Food & Staples Retailing — 1.6% | ||||||||
1,649 | Costco Wholesale Corp.(a) | $ | 344,608 | |||||
2,035 | Sysco Corp.(a) | 138,970 | ||||||
2,805 | Walgreens Boots Alliance, Inc.(a) | 168,342 | ||||||
3,695 | Walmart, Inc.(a) | 316,477 | ||||||
|
| |||||||
968,397 | ||||||||
|
| |||||||
Food Products — 1.0% | ||||||||
1,272 | Hain Celestial Group, Inc. (The)(a)(b) | 37,906 | ||||||
375 | Ingredion, Inc.(a) | 41,512 | ||||||
2,285 | Kellogg Co.(a) | 159,653 | ||||||
6,766 | Mondelez International, Inc., Class A(a) | 277,406 | ||||||
808 | Post Holdings, Inc.(a)(b) | 69,504 | ||||||
535 | TreeHouse Foods, Inc.(a)(b) | 28,093 | ||||||
|
| |||||||
614,074 | ||||||||
|
| |||||||
Gas Utilities — 0.1% | ||||||||
1,514 | UGI Corp.(a) | 78,834 | ||||||
|
| |||||||
Health Care Equipment & Supplies — 2.8% | ||||||||
6,581 | Abbott Laboratories(a) | 401,375 | ||||||
393 | Align Technology, Inc.(a)(b) | 134,461 | ||||||
541 | Cooper Cos., Inc. (The)(a) | 127,378 | ||||||
858 | DENTSPLY SIRONA, Inc.(a) | 37,555 | ||||||
2,327 | Hologic, Inc.(a)(b) | 92,498 | ||||||
697 | IDEXX Laboratories, Inc.(a)(b) | 151,904 | ||||||
5,057 | Medtronic PLC(a) | 432,930 | ||||||
1,317 | ResMed, Inc.(a) | 136,415 | ||||||
926 | STERIS PLC(a) | 97,239 | ||||||
289 | Teleflex, Inc.(a) | 77,513 | ||||||
|
| |||||||
1,689,268 | ||||||||
|
| |||||||
Health Care Providers & Services — 3.3% | ||||||||
1,372 | Anthem, Inc.(a) | 326,577 | ||||||
1,168 | Centene Corp.(a)(b) | 143,909 | ||||||
3,223 | CVS Health Corp.(a) | 207,400 | ||||||
2,633 | Express Scripts Holding Co.(a)(b) | 203,294 | ||||||
1,035 | McKesson Corp.(a) | 138,069 | ||||||
379 | MEDNAX, Inc.(a)(b) | 16,403 | ||||||
3,427 | UnitedHealth Group, Inc.(a) | 840,780 | ||||||
389 | WellCare Health Plans, Inc.(a)(b) | 95,788 | ||||||
|
| |||||||
1,972,220 | ||||||||
|
| |||||||
Health Care Technology — 0.1% | ||||||||
476 | Veeva Systems, Inc., Class A(a)(b) | 36,585 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.5% | ||||||||
116 | Domino’s Pizza, Inc.(a) | 32,732 | ||||||
867 | Hilton Grand Vacations, Inc.(a)(b) | 30,085 | ||||||
2,240 | Hilton Worldwide Holdings, Inc.(a) | 177,318 | ||||||
671 | Las Vegas Sands Corp.(a) | 51,237 | ||||||
1,020 | McDonald’s Corp.(a) | 159,824 |
See accompanying notes to financial statements.
| 32
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Hotels, Restaurants & Leisure — continued | ||||||||
3,424 | MGM Resorts International(a) | $ | 99,399 | |||||
4,196 | Starbucks Corp.(a) | 204,975 | ||||||
221 | Yum China Holdings, Inc. | 8,500 | ||||||
1,755 | Yum! Brands, Inc.(a) | 137,276 | ||||||
|
| |||||||
901,346 | ||||||||
|
| |||||||
Household Durables — 0.3% | ||||||||
1,508 | Leggett & Platt, Inc.(a) | 67,317 | ||||||
1,415 | Newell Brands, Inc.(a) | 36,493 | ||||||
2,731 | Toll Brothers, Inc.(a) | 101,020 | ||||||
|
| |||||||
204,830 | ||||||||
|
| |||||||
Household Products — 1.7% | ||||||||
2,291 | Church & Dwight Co., Inc.(a) | 121,790 | ||||||
856 | Clorox Co. (The)(a) | 115,774 | ||||||
1,475 | Kimberly-Clark Corp.(a) | 155,376 | ||||||
8,248 | Procter & Gamble Co. (The)(a) | 643,839 | ||||||
|
| |||||||
1,036,779 | ||||||||
|
| |||||||
Industrial Conglomerates — 2.0% | ||||||||
1,885 | 3M Co.(a) | 370,817 | ||||||
28,602 | General Electric Co.(a) | 389,273 | ||||||
3,159 | Honeywell International, Inc.(a) | 455,054 | ||||||
|
| |||||||
1,215,144 | ||||||||
|
| |||||||
Insurance — 2.0% | ||||||||
1,273 | American Financial Group, Inc.(a) | 136,631 | ||||||
2,703 | Arch Capital Group Ltd.(a)(b) | 71,521 | ||||||
2,266 | Chubb Ltd.(a) | 287,827 | ||||||
1,334 | Cincinnati Financial Corp.(a) | 89,191 | ||||||
2,193 | Lincoln National Corp.(a) | 136,514 | ||||||
2,452 | Prudential Financial, Inc.(a) | 229,287 | ||||||
441 | Reinsurance Group of America, Inc.(a) | 58,865 | ||||||
592 | RenaissanceRe Holdings Ltd.(a) | 71,230 | ||||||
949 | Willis Towers Watson PLC(a) | 143,868 | ||||||
|
| |||||||
1,224,934 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 4.5% | ||||||||
1,096 | Amazon.com, Inc.(a)(b) | 1,862,981 | ||||||
157 | Booking Holdings, Inc.(a)(b) | 318,253 | ||||||
47 | Liberty Expedia Holdings, Inc., Series A(a)(b) | 2,065 | ||||||
1,254 | Netflix, Inc.(a)(b) | 490,853 | ||||||
1,552 | Qurate Retail, Inc., Class A(a)(b) | 32,934 | ||||||
|
| |||||||
2,707,086 | ||||||||
|
| |||||||
Internet Software & Services — 5.3% | ||||||||
259 | Alibaba Group Holding Ltd., Sponsored ADR(a)(b) | 48,052 | ||||||
917 | Alphabet, Inc., Class A(a)(b) | 1,035,467 | ||||||
726 | Alphabet, Inc., Class C(a)(b) | 809,962 | ||||||
6,725 | Facebook, Inc., Class A(a)(b) | 1,306,802 | ||||||
|
| |||||||
3,200,283 | ||||||||
|
|
See accompanying notes to financial statements.
33 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
IT Services — 4.2% | ||||||||
2,178 | Accenture PLC, Class A(a) | $ | 356,299 | |||||
680 | Amdocs Ltd.(a) | 45,009 | ||||||
223 | FleetCor Technologies, Inc.(a)(b) | 46,975 | ||||||
543 | Gartner, Inc.(a)(b) | 72,165 | ||||||
1,053 | Global Payments, Inc.(a) | 117,399 | ||||||
2,806 | International Business Machines Corp.(a) | 391,998 | ||||||
2,885 | MasterCard, Inc., Class A(a) | 566,960 | ||||||
1,745 | Paychex, Inc.(a) | 119,271 | ||||||
6,270 | Visa, Inc., Class A(a) | 830,462 | ||||||
|
| |||||||
2,546,538 | ||||||||
|
| |||||||
Leisure Products — 0.1% | ||||||||
590 | Brunswick Corp.(a) | 38,043 | ||||||
224 | Polaris Industries, Inc.(a) | 27,369 | ||||||
|
| |||||||
65,412 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 0.7% | ||||||||
480 | Illumina, Inc.(a)(b) | 134,059 | ||||||
1,410 | Thermo Fisher Scientific, Inc.(a) | 292,068 | ||||||
|
| |||||||
426,127 | ||||||||
|
| |||||||
Machinery — 1.2% | ||||||||
425 | AGCO Corp.(a) | 25,806 | ||||||
2,587 | Caterpillar, Inc.(a) | 350,978 | ||||||
789 | Cummins, Inc.(a) | 104,937 | ||||||
1,079 | IDEX Corp.(a) | 147,262 | ||||||
339 | WABCO Holdings, Inc.(a)(b) | 39,670 | ||||||
374 | Wabtec Corp.(a) | 36,869 | ||||||
|
| |||||||
705,522 | ||||||||
|
| |||||||
Media — 2.3% | ||||||||
871 | AMC Networks, Inc., Class A(a)(b) | 54,176 | ||||||
14,234 | Comcast Corp., Class A(a) | 467,018 | ||||||
628 | GCI Liberty, Inc., Class A(a)(b) | 28,310 | ||||||
7,571 | Sirius XM Holdings, Inc.(a) | 51,256 | ||||||
6,038 | Twenty-First Century Fox, Inc., Class A(a) | 300,028 | ||||||
4,695 | Walt Disney Co. (The)(a) | 492,083 | ||||||
|
| |||||||
1,392,871 | ||||||||
|
| |||||||
Metals & Mining — 0.3% | ||||||||
6,260 | Barrick Gold Corp.(a) | 82,194 | ||||||
1,565 | Steel Dynamics, Inc.(a) | 71,912 | ||||||
|
| |||||||
154,106 | ||||||||
|
| |||||||
Multi-Utilities — 0.4% | ||||||||
4,713 | Public Service Enterprise Group, Inc.(a) | 255,162 | ||||||
|
| |||||||
Multiline Retail — 0.2% | ||||||||
1,780 | Nordstrom, Inc.(a) | 92,168 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 5.6% | ||||||||
1,236 | Cheniere Energy, Inc.(a)(b) | 80,575 | ||||||
6,080 | Chevron Corp.(a) | 768,694 |
See accompanying notes to financial statements.
| 34
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Oil, Gas & Consumable Fuels — continued | ||||||||
1,213 | Concho Resources, Inc.(a)(b) | $ | 167,819 | |||||
6,360 | Encana Corp.(a) | 82,998 | ||||||
1,343 | Energen Corp.(a)(b) | 97,797 | ||||||
12,713 | Exxon Mobil Corp.(a) | 1,051,747 | ||||||
1,026 | HollyFrontier Corp.(a) | 70,209 | ||||||
3,648 | Noble Energy, Inc.(a) | 128,701 | ||||||
3,961 | Occidental Petroleum Corp.(a) | 331,457 | ||||||
2,749 | Phillips 66(a) | 308,740 | ||||||
1,049 | Pioneer Natural Resources Co.(a) | 198,513 | ||||||
695 | Whiting Petroleum Corp.(a)(b) | 36,640 | ||||||
5,217 | WPX Energy, Inc.(a)(b) | 94,063 | ||||||
|
| |||||||
3,417,953 | ||||||||
|
| |||||||
Pharmaceuticals — 4.1% | ||||||||
1,251 | Allergan PLC(a) | 208,567 | ||||||
4,361 | Bristol-Myers Squibb Co.(a) | 241,338 | ||||||
3,264 | Eli Lilly & Co.(a) | 278,517 | ||||||
199 | Jazz Pharmaceuticals PLC(a)(b) | 34,288 | ||||||
7,937 | Johnson & Johnson(a) | 963,075 | ||||||
2,187 | Merck & Co., Inc.(a) | 132,751 | ||||||
17,619 | Pfizer, Inc.(a) | 639,217 | ||||||
|
| |||||||
2,497,753 | ||||||||
|
| |||||||
Professional Services — 0.3% | ||||||||
310 | ManpowerGroup, Inc.(a) | 26,678 | ||||||
1,334 | Verisk Analytics, Inc.(a)(b) | 143,592 | ||||||
|
| |||||||
170,270 | ||||||||
|
| |||||||
Real Estate Management & Development — 0.0% | ||||||||
176 | Jones Lang LaSalle, Inc.(a) | 29,214 | ||||||
|
| |||||||
REITs – Apartments — 0.8% | ||||||||
1,681 | American Campus Communities, Inc.(a) | 72,081 | ||||||
423 | Camden Property Trust(a) | 38,548 | ||||||
443 | Essex Property Trust, Inc.(a) | 105,908 | ||||||
1,035 | Mid-America Apartment Communities, Inc.(a) | 104,193 | ||||||
3,862 | UDR, Inc.(a) | 144,980 | ||||||
|
| |||||||
465,710 | ||||||||
|
| |||||||
REITs – Diversified — 0.7% | ||||||||
1,899 | Crown Castle International Corp.(a) | 204,750 | ||||||
1,330 | Digital Realty Trust, Inc.(a) | 148,401 | ||||||
540 | SBA Communications Corp.(a)(b) | 89,165 | ||||||
|
| |||||||
442,316 | ||||||||
|
| |||||||
REITs – Hotels — 0.1% | ||||||||
1,828 | Park Hotels & Resorts, Inc.(a) | 55,992 | ||||||
|
| |||||||
REITs – Mortgage — 0.2% | ||||||||
3,683 | AGNC Investment Corp.(a) | 68,467 | ||||||
8,083 | Annaly Capital Management, Inc.(a) | 83,174 | ||||||
|
| |||||||
151,641 | ||||||||
|
|
See accompanying notes to financial statements.
35 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
REITs – Office Property — 0.3% | ||||||||
1,019 | Kilroy Realty Corp.(a) | $ | 77,077 | |||||
1,081 | SL Green Realty Corp.(a) | 108,673 | ||||||
|
| |||||||
185,750 | ||||||||
|
| |||||||
REITs – Shopping Centers — 0.2% | ||||||||
1,845 | Regency Centers Corp.(a) | 114,538 | ||||||
|
| |||||||
REITs – Single Tenant — 0.3% | ||||||||
1,710 | National Retail Properties, Inc.(a) | 75,172 | ||||||
1,828 | Realty Income Corp.(a) | 98,328 | ||||||
|
| |||||||
173,500 | ||||||||
|
| |||||||
REITs – Storage — 0.2% | ||||||||
1,120 | Extra Space Storage, Inc.(a) | 111,787 | ||||||
|
| |||||||
REITs – Warehouse/Industrials — 0.2% | ||||||||
4,510 | Duke Realty Corp.(a) | 130,925 | ||||||
|
| |||||||
Road & Rail — 1.0% | ||||||||
1,121 | Norfolk Southern Corp.(a) | 169,125 | ||||||
469 | Old Dominion Freight Line, Inc.(a) | 69,862 | ||||||
2,732 | Union Pacific Corp.(a) | 387,070 | ||||||
|
| |||||||
626,057 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 3.9% | ||||||||
5,471 | Applied Materials, Inc.(a) | 252,706 | ||||||
13,503 | Intel Corp.(a) | 671,234 | ||||||
2,720 | Maxim Integrated Products, Inc.(a) | 159,555 | ||||||
1,879 | NVIDIA Corp.(a) | 445,135 | ||||||
1,064 | NXP Semiconductors NV(a)(b) | 116,263 | ||||||
4,550 | QUALCOMM, Inc.(a) | 255,346 | ||||||
3,730 | Texas Instruments, Inc.(a) | 411,233 | ||||||
981 | Versum Materials, Inc.(a) | 36,444 | ||||||
|
| |||||||
2,347,916 | ||||||||
|
| |||||||
Software — 6.5% | ||||||||
2,778 | Activision Blizzard, Inc.(a) | 212,017 | ||||||
1,525 | Adobe Systems, Inc.(a)(b) | 371,810 | ||||||
560 | ANSYS, Inc.(a)(b) | 97,541 | ||||||
1,739 | Cadence Design Systems, Inc.(a)(b) | 75,316 | ||||||
825 | CDK Global, Inc.(a) | 53,666 | ||||||
264 | Check Point Software Technologies Ltd.(a)(b) | 25,788 | ||||||
275 | Dell Technologies, Inc., Class V(a)(b) | 23,259 | ||||||
342 | Fortinet, Inc.(a)(b) | 21,351 | ||||||
21,391 | Microsoft Corp.(a) | 2,109,367 | ||||||
8,872 | Oracle Corp.(a) | 390,900 | ||||||
2,196 | salesforce.com, inc.(a)(b) | 299,534 | ||||||
539 | ServiceNow, Inc.(a)(b) | 92,961 | ||||||
1,052 | Synopsys, Inc.(a)(b) | 90,020 | ||||||
596 | Take-Two Interactive Software, Inc.(a)(b) | 70,543 | ||||||
135 | Ultimate Software Group, Inc. (The)(a)(b) | 34,737 | ||||||
|
| |||||||
3,968,810 | ||||||||
|
|
See accompanying notes to financial statements.
| 36
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Specialty Retail — 2.6% | ||||||||
606 | Advance Auto Parts, Inc.(a) | $ | 82,234 | |||||
1,011 | Dick’s Sporting Goods, Inc.(a) | 35,638 | ||||||
1,145 | Foot Locker, Inc.(a) | 60,284 | ||||||
3,807 | Home Depot, Inc. (The)(a) | 742,746 | ||||||
2,921 | Lowe’s Cos., Inc.(a) | 279,160 | ||||||
2,887 | TJX Cos., Inc. (The)(a) | 274,785 | ||||||
334 | Ulta Beauty, Inc.(a)(b) | 77,976 | ||||||
583 | Williams-Sonoma, Inc.(a) | 35,784 | ||||||
|
| |||||||
1,588,607 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 4.5% | ||||||||
13,419 | Apple, Inc.(a) | 2,483,991 | ||||||
6,840 | Hewlett Packard Enterprise Co.(a) | 99,932 | ||||||
7,665 | HP, Inc.(a) | 173,919 | ||||||
|
| |||||||
2,757,842 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.9% | ||||||||
388 | Carter’s, Inc.(a) | 42,055 | ||||||
3,129 | Hanesbrands, Inc.(a) | 68,901 | ||||||
344 | Lululemon Athletica, Inc.(a)(b) | 42,948 | ||||||
4,597 | NIKE, Inc., Class B(a) | 366,289 | ||||||
849 | Skechers U.S.A., Inc., Class A(a)(b) | 25,479 | ||||||
|
| |||||||
545,672 | ||||||||
|
| |||||||
Tobacco — 1.3% | ||||||||
6,758 | Altria Group, Inc.(a) | 383,787 | ||||||
4,913 | Philip Morris International, Inc.(a) | 396,676 | ||||||
|
| |||||||
780,463 | ||||||||
|
| |||||||
Water Utilities — 0.3% | ||||||||
1,820 | American Water Works Co., Inc.(a) | 155,392 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.0% | ||||||||
1,378 | Sprint Corp.(b) | 7,496 | ||||||
|
| |||||||
Total Common Stocks (Identified Cost $44,751,083) | 60,354,831 | |||||||
|
| |||||||
Principal Amount | ||||||||
Short-Term Investments — 1.8% | ||||||||
$ | 1,066,922 | Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/29/2018 at 1.100% to be repurchased at $1,067,020 on 7/02/2018 collateralized by $1,105,000 U.S. Treasury Note, 2.125% due 12/31/2022 valued at $1,089,131 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $1,066,922) | 1,066,922 | |||||
|
| |||||||
Total Investments — 101.3% (Identified Cost $45,818,005) | 61,421,753 | |||||||
Other assets less liabilities — (1.3)% | (763,353 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 60,658,400 | ||||||
|
|
See accompanying notes to financial statements.
37 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Written Options — (0.9%) |
| |||||||||||||||||||||||
Description | Expiration Date | Exercise Price | Contracts | Notional Amount | Premiums (Received) | Value (†) | ||||||||||||||||||
Index Options — (0.9%) | ||||||||||||||||||||||||
S&P 500® Index, Call | 07/13/2018 | 2,760 | (24 | ) | $ | (6,524,088 | ) | $ | (74,340 | ) | $ | (19,560 | ) | |||||||||||
S&P 500® Index, Call | 07/20/2018 | 2,700 | (25 | ) | (6,795,925 | ) | (187,438 | ) | (115,125 | ) | ||||||||||||||
S&P 500® Index, Call | 07/20/2018 | 2,725 | (23 | ) | (6,252,251 | ) | (113,542 | ) | (68,195 | ) | ||||||||||||||
S&P 500® Index, Call | 07/20/2018 | 2,775 | (26 | ) | (7,067,762 | ) | (106,535 | ) | (19,630 | ) | ||||||||||||||
S&P 500® Index, Call | 07/20/2018 | 2,800 | (24 | ) | (6,524,088 | ) | (62,340 | ) | (6,780 | ) | ||||||||||||||
S&P 500® Index, Call | 07/27/2018 | 2,740 | (23 | ) | (6,252,251 | ) | (63,611 | ) | (60,835 | ) | ||||||||||||||
S&P 500® Index, Call | 08/17/2018 | 2,700 | (25 | ) | (6,795,925 | ) | (212,438 | ) | (156,625 | ) | ||||||||||||||
S&P 500® Index, Call | 08/17/2018 | 2,775 | (25 | ) | (6,795,925 | ) | (117,437 | ) | (49,875 | ) | ||||||||||||||
S&P 500® Index, Call | 08/17/2018 | 2,800 | (24 | ) | (6,524,088 | ) | (89,940 | ) | (27,120 | ) | ||||||||||||||
|
|
|
| |||||||||||||||||||||
Total | $ | (1,027,621 | ) | $ | (523,745 | ) | ||||||||||||||||||
|
|
|
|
(†) | See Note 2 of Notes to Financial Statements. | |||
(a) | Security (or a portion thereof) has been pledged as collateral for open derivative contracts. | |||
(b) | Non-income producing security. | |||
ADR | An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States. | |||
REITs | Real Estate Investment Trusts |
See accompanying notes to financial statements.
| 38
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Industry Summary at June 30, 2018 (Unaudited)
Software | 6.5 | % | ||
Banks | 6.3 | |||
Oil, Gas & Consumable Fuels | 5.6 | |||
Internet Software & Services | 5.3 | |||
Technology Hardware, Storage & Peripherals | 4.5 | |||
Internet & Direct Marketing Retail | 4.5 | |||
IT Services | 4.2 | |||
Pharmaceuticals | 4.1 | |||
Semiconductors & Semiconductor Equipment | 3.9 | |||
Health Care Providers & Services | 3.3 | |||
Biotechnology | 2.8 | |||
Health Care Equipment & Supplies | 2.8 | |||
Specialty Retail | 2.6 | |||
Media | 2.3 | |||
Capital Markets | 2.2 | |||
Diversified Telecommunication Services | 2.1 | |||
Electric Utilities | 2.1 | |||
Aerospace & Defense | 2.0 | |||
Insurance | 2.0 | |||
Industrial Conglomerates | 2.0 | |||
Other Investments, less than 2% each | 28.4 | |||
Short-Term Investments | 1.8 | |||
|
| |||
Total Investments | 101.3 | |||
Other assets less liabilities (including open written options) | (1.3 | ) | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
See accompanying notes to financial statements.
39 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Mirova Global Green Bond Fund
Principal Amount (‡) | Description | Value (†) | ||||||
Bonds and Notes — 94.5% of Net Assets | ||||||||
Australia — 0.4% |
| |||||||
100,000 | National Australia Bank Ltd., GMTN, 0.350%, 9/07/2022, (EUR)(a) | $ | 116,393 | |||||
|
| |||||||
Austria — 1.3% |
| |||||||
300,000 | Verbund AG, 1.500%, 11/20/2024, (EUR)(a) | 367,720 | ||||||
|
| |||||||
Belgium — 2.2% |
| |||||||
500,000 | Kingdom of Belgium, Series 86, 1.250%, 4/22/2033, (EUR)(a) | 597,855 | ||||||
|
| |||||||
Brazil — 0.7% |
| |||||||
200,000 | Fibria Overseas Finance Ltd., 5.500%, 1/17/2027 | 199,000 | ||||||
|
| |||||||
Canada — 2.7% |
| |||||||
1,000,000 | Province of Ontario Canada, 1.950%, 1/27/2023, (CAD)(a) | 744,297 | ||||||
|
| |||||||
Denmark — 0.9% |
| |||||||
200,000 | Orsted AS, 1.500%, 11/26/2029, (EUR)(a) | 232,793 | ||||||
|
| |||||||
Finland — 0.7% |
| |||||||
200,000 | Municipality Finance PLC, 1.375%, 9/21/2021(a) | 190,535 | ||||||
|
| |||||||
France — 15.9% |
| |||||||
100,000 | Agence Francaise de Developpement, EMTN, 1.375%, 9/17/2024, (EUR)(a) | 124,651 | ||||||
400,000 | Electricite de France S.A., 3.625%, 10/13/2025(a) | 391,607 | ||||||
400,000 | Electricite de France S.A., EMTN, 1.000%, 10/13/2026, (EUR)(a) | 455,029 | ||||||
100,000 | Engie S.A., EMTN, 1.500%, 3/27/2028, (EUR)(a) | 119,373 | ||||||
1,450,000 | France Government Bond OAT, 1.750%, 6/25/2039, (EUR)(a) | 1,836,656 | ||||||
300,000 | ICADE, 1.500%, 9/13/2027, (EUR)(a) | 343,865 | ||||||
100,000 | SNCF Reseau EPIC, EMTN, 1.000%, 11/09/2031, (EUR)(a) | 115,253 | ||||||
400,000 | SNCF Reseau EPIC, EMTN, 1.875%, 3/30/2034, (EUR)(a) | 506,956 | ||||||
400,000 | Unibail-Rodamco SE, EMTN, 1.000%, 3/14/2025, (EUR)(a) | 469,658 | ||||||
|
| |||||||
4,363,048 | ||||||||
|
| |||||||
Germany — 3.6% |
| |||||||
100,000 | Berlin Hyp AG, 0.500%, 9/26/2023, (EUR)(a) | 116,768 | ||||||
100,000 | Deutsche Kreditbank AG, Series 100, 0.625%, 6/08/2021, (EUR)(a) | 117,902 | ||||||
100,000 | Kreditanstalt fuer Wiederaufbau, 1.750%, 10/15/2019(a) | 98,940 | ||||||
400,000 | Kreditanstalt fuer Wiederaufbau, 2.000%, 9/29/2022(a) | 385,866 | ||||||
370,000 | Kreditanstalt fuer Wiederaufbau, MTN, 2.400%, 7/02/2020, (AUD)(a) | 274,266 | ||||||
|
| |||||||
993,742 | ||||||||
|
| |||||||
India — 2.0% |
| |||||||
600,000 | Indian Railway Finance Corp. Ltd., 3.835%, 12/13/2027(a) | 557,604 | ||||||
|
| |||||||
Indonesia — 0.7% |
| |||||||
200,000 | Republic of Indonesia, 3.750%, 3/01/2023(a) | 195,828 | ||||||
|
| |||||||
Italy — 3.8% |
| |||||||
400,000 | Ferrovie dello Stato Italiane S.p.A., EMTN, 0.875%, 12/07/2023, (EUR)(a) | 458,398 | ||||||
200,000 | Hera SpA, EMTN, 2.375%, 7/04/2024, (EUR)(a) | 250,563 | ||||||
300,000 | Intesa Sanpaolo SpA, EMTN, 0.875%, 6/27/2022, (EUR)(a) | 343,091 | ||||||
|
| |||||||
1,052,052 | ||||||||
|
|
See accompanying notes to financial statements.
| 40
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Mirova Global Green Bond Fund – (continued)
Principal Amount (‡) | Description | Value (†) | ||||||
Japan — 6.0% |
| |||||||
700,000 | Mizuho Financial Group, Inc., EMTN, 0.956%, 10/16/2024, (EUR)(a) | $ | 817,057 | |||||
700,000 | Sumitomo Mitsui Financial Group, Inc., EMTN, 0.934%, 10/11/2024, (EUR)(a) | 816,520 | ||||||
|
| |||||||
1,633,577 | ||||||||
|
| |||||||
Korea — 2.2% |
| |||||||
400,000 | Hyundai Capital Services, Inc., 2.875%, 3/16/2021(a) | 391,192 | ||||||
200,000 | Korea Water Resources Corp., EMTN, 3.875%, 5/15/2023(a) | 201,191 | ||||||
|
| |||||||
592,383 | ||||||||
|
| |||||||
Mexico — 0.7% |
| |||||||
200,000 | Nacional Financiera SNC, 3.375%, 11/05/2020 | 199,000 | ||||||
|
| |||||||
Netherlands — 17.7% |
| |||||||
500,000 | Enel Finance International NV, EMTN, 1.000%, 9/16/2024, (EUR)(a) | 576,484 | ||||||
600,000 | Enel Finance International NV, EMTN, 1.125%, 9/16/2026, (EUR)(a) | 662,524 | ||||||
500,000 | Iberdrola International BV, (fixed rate to 5/22/2023, variable rate thereafter), 1.875%, (EUR)(a)(b) | 557,624 | ||||||
500,000 | Iberdrola International BV, EMTN, 1.125%, 4/21/2026, (EUR)(a) | 576,828 | ||||||
100,000 | innogy Finance BV, EMTN, 1.250%, 10/19/2027, (EUR)(a) | 114,148 | ||||||
1,000,000 | Nederlandse Waterschapsbank NV, 2.375%, 3/24/2026(a) | 948,728 | ||||||
100,000 | Nederlandse Waterschapsbank NV, EMTN, 1.000%, 9/03/2025, (EUR) | 121,843 | ||||||
100,000 | TenneT Holding BV, (fixed rate to 6/01/2024, variable rate thereafter), 2.995%, (EUR)(b) | 116,868 | ||||||
100,000 | TenneT Holding BV, EMTN, 1.250%, 10/24/2033, (EUR)(a) | 111,428 | ||||||
300,000 | TenneT Holding BV, EMTN, 1.375%, 6/26/2029, (EUR)(a) | 352,008 | ||||||
400,000 | TenneT Holding BV, EMTN, 1.750%, 6/04/2027, (EUR)(a) | 494,702 | ||||||
200,000 | TenneT Holding BV, EMTN, 1.875%, 6/13/2036, (EUR) | 237,012 | ||||||
|
| |||||||
4,870,197 | ||||||||
|
| |||||||
Norway — 0.7% |
| |||||||
200,000 | Kommunalbanken AS, MTN, 1.375%, 10/26/2020(a) | 193,833 | ||||||
|
| |||||||
Spain — 0.4% |
| |||||||
100,000 | ACS Servicios Comunicaciones y Energia, S.L., 1.875%, 4/20/2026, (EUR)(a) | 114,375 | ||||||
|
| |||||||
Supranationals — 9.6% |
| |||||||
100,000 | Asian Development Bank, GMTN, 2.375%, 8/10/2027(a) | 94,992 | ||||||
100,000 | European Investment Bank, 1.500%, 11/15/2047, (EUR)(a) | 117,432 | ||||||
100,000 | European Investment Bank, 2.125%, 4/13/2026(a) | 93,758 | ||||||
200,000 | European Investment Bank, 2.375%, 5/24/2027(a) | 189,694 | ||||||
700,000 | European Investment Bank, 2.500%, 10/15/2024(a) | 679,240 | ||||||
600,000 | European Investment Bank, EMTN, 0.500%, 11/13/2037, (EUR)(a) | 607,921 | ||||||
200,000 | International Bank for Reconstruction & Development, Series GDIF, 2.125%, 3/03/2025(a) | 190,000 | ||||||
600,000 | International Finance Corp., GMTN, 2.000%, 10/24/2022(a) | 579,059 | ||||||
100,000 | International Finance Corp., GMTN, 2.125%, 4/07/2026(a) | 93,962 | ||||||
|
| |||||||
2,646,058 | ||||||||
|
| |||||||
Sweden — 4.3% |
| |||||||
1,200,000 | Svensk Exportkredit AB, GMTN, 1.875%, 6/23/2020(a) | 1,178,843 | ||||||
|
|
See accompanying notes to financial statements.
41 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Mirova Global Green Bond Fund – (continued)
Principal Amount (‡) | Description | Value (†) | ||||||
United Kingdom — 5.8% |
| |||||||
500,000 | Anglian Water Services Financing PLC, EMTN, 1.625%, 8/10/2025, (GBP)(a) | $ | 639,706 | |||||
600,000 | SSE PLC, EMTN, 0.875%, 9/06/2025, (EUR)(a) | 695,712 | ||||||
200,000 | Transport for London, EMTN, 2.125%, 4/24/2025, (GBP)(a) | 269,018 | ||||||
|
| |||||||
1,604,436 | ||||||||
|
| |||||||
United States — 12.2% |
| |||||||
300,000 | Apple, Inc., 2.850%, 2/23/2023(a) | 295,319 | ||||||
900,000 | Apple, Inc., 3.000%, 6/20/2027(a) | 855,447 | ||||||
300,000 | Bank of America Corp., (fixed rate to 5/17/2021, variable rate thereafter), MTN, 3.499%, 5/17/2022(a) | 299,897 | ||||||
400,000 | Digital Realty Trust LP, 3.950%, 7/01/2022(a) | 404,088 | ||||||
500,000 | DTE Electric Co., Series A, 4.050%, 5/15/2048(a) | 496,531 | ||||||
400,000 | Southern Power Co., 4.150%, 12/01/2025(a) | 400,621 | ||||||
500,000 | Southern Power Co., Series 2016, 1.000%, 6/20/2022, (EUR)(a) | 594,422 | ||||||
|
| |||||||
3,346,325 | ||||||||
|
| |||||||
Total Bonds and Notes (Identified Cost $25,684,262) | 25,989,894 | |||||||
|
| |||||||
Total Investments — 94.5% (Identified Cost $25,684,262) | 25,989,894 | |||||||
Other assets less liabilities — 5.5% | 1,504,562 | |||||||
|
| |||||||
Net Assets — 100.0% | $ | 27,494,456 | ||||||
|
| |||||||
(‡) | Principal Amount stated in U.S. dollars unless otherwise noted. |
| ||||||
(†) | See Note 2 of Notes to Financial Statements. |
| ||||||
(a) | Security (or a portion thereof) has been designated to cover the Fund’s obligations under open derivative contracts. |
| ||||||
(b) | Perpetual bond with no specified maturity date. |
| ||||||
EMTN | Euro Medium Term Note |
| ||||||
GMTN | Global Medium Term Note |
| ||||||
MTN | Medium Term Note |
| ||||||
AUD | Australian Dollar |
| ||||||
CAD | Canadian Dollar |
| ||||||
EUR | Euro |
| ||||||
GBP | British Pound |
|
At June 30, 2018, open long futures contracts were as follows:
Financial Futures | Expiration Date | Contracts | Notional Amount | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
2 Year U.S. Treasury Note | 9/28/2018 | 10 | $ | 2,120,801 | $ | 2,118,281 | $ | (2,520 | ) | |||||||||||
30 Year U.S. Treasury Bond | 9/19/2018 | 1 | 145,416 | 145,000 | (416 | ) | ||||||||||||||
German Euro BOBL | 9/06/2018 | 5 | 768,070 | 771,740 | 3,670 | |||||||||||||||
German Euro Bund | 9/06/2018 | 1 | 186,265 | 189,826 | 3,561 | |||||||||||||||
|
| |||||||||||||||||||
Total |
| $ | 4,295 | |||||||||||||||||
|
|
See accompanying notes to financial statements.
| 42
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Mirova Global Green Bond Fund – (continued)
At June 30, 2018, open short futures contracts were as follows:
Financial Futures | Expiration Date | Contracts | Notional Amount | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
10 Year U.S. Treasury Note | 9/19/2018 | 7 | $ | 837,892 | $ | 841,313 | $ | (3,421 | ) | |||||||||||
5 Year U.S. Treasury Note | 9/28/2018 | 20 | 2,279,600 | 2,272,344 | 7,256 | |||||||||||||||
Australian Dollar | 9/17/2018 | 5 | 383,460 | 369,899 | 13,561 | |||||||||||||||
British Pound | 9/17/2018 | 12 | 1,011,189 | 992,700 | 18,489 | |||||||||||||||
Canadian Dollar | 9/18/2018 | 11 | 855,712 | 837,760 | 17,952 | |||||||||||||||
Euro | 9/17/2018 | 98 | 14,525,459 | 14,377,213 | 148,246 | |||||||||||||||
Euro-Buxl® 30 Year Bond | 9/06/2018 | 1 | 204,994 | 207,518 | (2,524 | ) | ||||||||||||||
Euro Schatz | 9/06/2018 | 8 | 1,045,588 | 1,047,143 | (1,555 | ) | ||||||||||||||
UK Long Gilt | 9/26/2018 | 2 | 325,183 | 324,817 | 366 | |||||||||||||||
Ultra Long U.S. Treasury Bond | 9/19/2018 | 1 | 159,967 | 159,562 | 405 | |||||||||||||||
|
| |||||||||||||||||||
Total |
| $ | 198,775 | |||||||||||||||||
|
|
Industry Summary at June 30, 2018 (Unaudited)
Utility – Electric | 21.7 | % | ||
Bank | 16.2 | |||
Financial | 12.2 | |||
Industrial | 10.3 | |||
Supra-National | 9.6 | |||
Government National | 9.6 | |||
Government Agency | 4.9 | |||
Government Regional | 3.4 | |||
Special Purpose | 3.0 | |||
Transportation – Rail | 2.7 | |||
Gas Transmission | 0.9 | |||
|
| |||
Total Investments | 94.5 | |||
Other assets less liabilities (including futures contracts) | 5.5 | |||
|
| |||
Net Assets | 100.0 | % | ||
|
|
Currency Exposure Summary at June 30, 2018 (Unaudited)
Euro | 51.8 | % | ||
United States Dollar | 35.7 | |||
British Pound | 3.3 | |||
Canadian Dollar | 2.7 | |||
Australian Dollar | 1.0 | |||
|
| |||
Total Investments | 94.5 | |||
Other assets less liabilities (including futures contracts) | 5.5 | |||
|
| |||
Net Assets | 100.0 | % | ||
|
|
See accompanying notes to financial statements.
43 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Mirova Global Sustainable Equity Fund
Shares | Description | Value (†) | ||||||
Common Stocks — 95.3% of Net Assets | ||||||||
Belgium — 3.0% | ||||||||
33,231 | KBC Groep NV | $ | 2,552,143 | |||||
|
| |||||||
China — 1.1% | ||||||||
153,000 | BYD Co. Ltd. | 943,496 | ||||||
|
| |||||||
Denmark — 7.9% | ||||||||
13,365 | Chr. Hansen Holding AS | 1,230,393 | ||||||
7,933 | Coloplast AS, Series B | 792,049 | ||||||
56,338 | Novo Nordisk AS, Class B | 2,602,284 | ||||||
13,797 | Novozymes AS | 697,828 | ||||||
22,576 | Vestas Wind Systems AS | 1,393,759 | ||||||
|
| |||||||
6,716,313 | ||||||||
|
| |||||||
France — 5.4% | ||||||||
15,000 | Danone | 1,095,187 | ||||||
18,505 | Essilor International Cie Generale d’Optique S.A. | 2,609,134 | ||||||
16,666 | Valeo S.A. | 908,690 | ||||||
|
| |||||||
4,613,011 | ||||||||
|
| |||||||
Germany — 4.8% | ||||||||
4,373 | Allianz SE, (Registered) | 901,077 | ||||||
11,566 | Fresenius SE & Co. KGaA, Sponsored ADR | 926,027 | ||||||
25,800 | Symrise AG | 2,256,839 | ||||||
|
| |||||||
4,083,943 | ||||||||
|
| |||||||
Hong Kong — 2.2% | ||||||||
214,737 | AIA Group Ltd. | 1,870,662 | ||||||
|
| |||||||
Ireland — 3.5% | ||||||||
39,700 | Eaton Corp. PLC | 2,967,178 | ||||||
|
| |||||||
Japan — 5.3% | ||||||||
9,000 | Rinnai Corp. | 793,181 | ||||||
87,900 | Sekisui House Ltd. | 1,553,578 | ||||||
34,100 | Toyota Motor Corp. | 2,205,212 | ||||||
|
| |||||||
4,551,971 | ||||||||
|
| |||||||
Netherlands — 3.3% | ||||||||
6,378 | ASML Holding NV | 1,262,109 | ||||||
27,884 | Unilever NV | 1,553,611 | ||||||
|
| |||||||
2,815,720 | ||||||||
|
| |||||||
Singapore — 1.2% | ||||||||
1,437,900 | Raffles Medical Group Ltd. | 1,064,320 | ||||||
|
| |||||||
Switzerland — 0.7% | ||||||||
1,413 | Geberit AG, (Registered) | 604,996 | ||||||
|
| |||||||
United Kingdom — 6.3% | ||||||||
20,700 | Aptiv PLC | 1,896,741 | ||||||
5,733 | Delphi Technologies PLC | 260,622 | ||||||
411,684 | Legal & General Group PLC | 1,440,004 | ||||||
77,029 | Prudential PLC | 1,755,978 | ||||||
|
| |||||||
5,353,345 | ||||||||
|
|
See accompanying notes to financial statements.
| 44
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Mirova Global Sustainable Equity Fund – (continued)
Shares | Description | Value (†) | ||||||
United States — 50.6% | ||||||||
26,300 | A.O. Smith Corp. | $ | 1,555,645 | |||||
8,100 | Acuity Brands, Inc. | 938,547 | ||||||
3,851 | Alphabet, Inc., Class A(a) | 4,348,511 | ||||||
1,200 | Amazon.com, Inc.(a) | 2,039,760 | ||||||
13,074 | American Water Works Co., Inc. | 1,116,258 | ||||||
28,687 | Danaher Corp. | 2,830,833 | ||||||
19,900 | Ecolab, Inc. | 2,792,567 | ||||||
8,700 | Ellie Mae, Inc.(a) | 903,408 | ||||||
5,800 | Estee Lauder Cos., Inc. (The), Class A | 827,602 | ||||||
12,100 | Facebook, Inc., Class A(a) | 2,351,272 | ||||||
20,100 | Gilead Sciences, Inc. | 1,423,884 | ||||||
2,200 | Illumina, Inc.(a) | 614,438 | ||||||
5,700 | International Flavors & Fragrances, Inc. | 706,572 | ||||||
21,300 | MasterCard, Inc., Class A | 4,185,876 | ||||||
38,863 | Microsoft Corp. | 3,832,280 | ||||||
7,796 | NextEra Energy, Inc. | 1,302,166 | ||||||
17,900 | Oracle Corp. | 788,674 | ||||||
8,500 | Roper Technologies, Inc. | 2,345,235 | ||||||
11,500 | Signature Bank(a) | 1,470,620 | ||||||
16,600 | Thermo Fisher Scientific, Inc. | 3,438,524 | ||||||
19,000 | Visa, Inc., Class A | 2,516,550 | ||||||
9,400 | Watts Water Technologies, Inc., Series A | 736,960 | ||||||
|
| |||||||
43,066,182 | ||||||||
|
| |||||||
Total Common Stocks (Identified Cost $70,055,575) | 81,203,280 | |||||||
|
| |||||||
Principal Amount | ||||||||
Short-Term Investments — 4.9% | ||||||||
$ | 4,128,772 | Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/29/2018 at 1.100% to be repurchased at $4,129,151 on 7/02/2018 collateralized by $4,275,000 U.S. Treasury Note, 2.125% due 12/31/2022 valued at $4,213,607 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $4,128,772) | 4,128,772 | |||||
|
| |||||||
Total Investments — 100.2% (Identified Cost $74,184,347) | 85,332,052 | |||||||
Other assets less liabilities — (0.2)% | (138,809 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 85,193,243 | ||||||
|
| |||||||
(†) | See Note 2 of Notes to Financial Statements. | |||||||
(a) | Non-income producing security. | |||||||
ADR | An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States. |
See accompanying notes to financial statements.
45 |
Portfolio of Investments – as of June 30, 2018 (Unaudited)
Mirova Global Sustainable Equity Fund – (continued)
Industry Summary at June 30, 2018 (Unaudited)
Chemicals | 9.0 | % | ||
IT Services | 7.9 | |||
Internet Software & Services | 7.9 | |||
Health Care Equipment & Supplies | 7.2 | |||
Insurance | 7.1 | |||
Software | 6.5 | |||
Electrical Equipment | 6.2 | |||
Life Sciences Tools & Services | 4.7 | |||
Banks | 4.7 | |||
Automobiles | 3.7 | |||
Auto Components | 3.6 | |||
Pharmaceuticals | 3.1 | |||
Personal Products | 2.8 | |||
Industrial Conglomerates | 2.8 | |||
Household Durables | 2.7 | |||
Building Products | 2.5 | |||
Internet & Direct Marketing Retail | 2.4 | |||
Health Care Providers & Services | 2.3 | |||
Other Investments, less than 2% each | 8.2 | |||
Short-Term Investments | 4.9 | |||
|
| |||
Total Investments | 100.2 | |||
Other assets less liabilities | (0.2 | ) | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
Currency Exposure Summary at June 30, 2018 (Unaudited)
United States Dollar | 61.5 | % | ||
Euro | 16.5 | |||
Danish Krone | 7.9 | |||
Japanese Yen | 5.3 | |||
British Pound | 3.8 | |||
Hong Kong Dollar | 3.3 | |||
Other, less than 2% each | 1.9 | |||
|
| |||
Total Investments | 100.2 | |||
Other assets less liabilities | (0.2 | ) | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
See accompanying notes to financial statements.
| 46
Statements of Assets and Liabilities
June 30, 2018 (Unaudited)
Gateway Fund | Gateway Equity Call Premium Fund | Mirova Global Green Bond Fund | ||||||||||
ASSETS |
| |||||||||||
Investments at cost | $ | 6,149,482,610 | $ | 45,818,005 | $ | 25,684,262 | ||||||
Net unrealized appreciation | 2,373,005,070 | 15,603,748 | 305,632 | |||||||||
|
|
|
|
|
| |||||||
Investments at value | 8,522,487,680 | 61,421,753 | 25,989,894 | |||||||||
Cash | 143,010 | 84 | — | |||||||||
Due from brokers (Note 2) | — | — | 152,874 | |||||||||
Foreign currency at value (identified cost $0, $0 and $870,703, respectively) | — | — | 865,315 | |||||||||
Receivable for Fund shares sold | 11,998,536 | 848 | 5,600 | |||||||||
Receivable for securities sold | 9,520,245 | — | 981,884 | |||||||||
Dividends and interest receivable | 6,622,248 | 54,523 | 138,668 | |||||||||
Tax reclaims receivable | — | — | 586 | |||||||||
Unrealized appreciation on futures contracts (Note 2) | — | — | 213,506 | |||||||||
Prepaid expenses (Note 8) | 9,337 | 74 | 30 | |||||||||
|
|
|
|
|
| |||||||
TOTAL ASSETS | 8,550,781,056 | 61,477,282 | 28,348,357 | |||||||||
|
|
|
|
|
| |||||||
LIABILITIES |
| |||||||||||
Options written, at value (premiums received $139,117,715, $1,027,621 and $0, respectively) (Note 2) | 70,752,870 | 523,745 | — | |||||||||
Payable for securities purchased | 143,010 | — | 404,580 | |||||||||
Payable for Fund shares redeemed | 7,362,991 | 149,135 | 27 | |||||||||
Payable to custodian bank (Note 9) | — | — | 383,700 | |||||||||
Unrealized depreciation on futures contracts (Note 2) | — | — | 10,436 | |||||||||
Management fees payable (Note 6) | 3,933,488 | 22,101 | 1,254 | |||||||||
Deferred Trustees’ fees (Note 6) | 687,289 | 31,505 | 5,129 | |||||||||
Administrative fees payable (Note 6) | 314,301 | 2,353 | 1,014 | |||||||||
Payable to distributor (Note 6d) | 61,073 | 325 | 14 | |||||||||
Other accounts payable and accrued expenses | 611,276 | 89,718 | 47,747 | |||||||||
|
|
|
|
|
| |||||||
TOTAL LIABILITIES | 83,866,298 | 818,882 | 853,901 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 8,466,914,758 | $ | 60,658,400 | $ | 27,494,456 | ||||||
|
|
|
|
|
| |||||||
NET ASSETS CONSIST OF: |
| |||||||||||
Paid-in capital | $ | 6,393,488,257 | $ | 47,904,489 | $ | 27,878,460 | ||||||
Undistributed (Distributions in excess of) net investment income | 2,016,762 | (22,595 | ) | (18,827 | ) | |||||||
Accumulated net realized loss on investments, futures contracts, options written and foreign currency transactions | (369,960,388 | ) | (3,331,118 | ) | (866,996 | ) | ||||||
Net unrealized appreciation on investments, futures contracts, options written and foreign currency translations | 2,441,370,127 | 16,107,624 | 501,819 | |||||||||
|
|
|
|
|
| |||||||
NET ASSETS | $ | 8,466,914,758 | $ | 60,658,400 | $ | 27,494,456 | ||||||
|
|
|
|
|
|
See accompanying notes to financial statements.
47 |
Statements of Assets and Liabilities (continued)
June 30, 2018 (Unaudited)
Gateway Fund | Gateway Equity Call Premium Fund | Mirova Global Green Bond Fund | ||||||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: | ||||||||||||
Class A shares: |
| |||||||||||
Net assets | $ | 1,455,894,277 | $ | 4,125,926 | $ | 908,553 | ||||||
|
|
|
|
|
| |||||||
Shares of beneficial interest | 43,841,063 | 343,129 | 92,366 | |||||||||
|
|
|
|
|
| |||||||
Net asset value and redemption price per share | $ | 33.21 | $ | 12.02 | $ | 9.84 | ||||||
|
|
|
|
|
| |||||||
Offering price per share (100/[100-maximum sales charge] of net asset value) (Note 1) | $ | 35.24 | $ | 12.75 | $ | 10.28 | ||||||
|
|
|
|
|
| |||||||
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1) | ||||||||||||
Net assets | $ | 309,503,482 | $ | 863,804 | $ | — | ||||||
|
|
|
|
|
| |||||||
Shares of beneficial interest | 9,363,427 | 72,043 | — | |||||||||
|
|
|
|
|
| |||||||
Net asset value and offering price per share | $ | 33.05 | $ | 11.99 | $ | — | ||||||
|
|
|
|
|
| |||||||
Class N shares: |
| |||||||||||
Net assets | $ | 195,083,220 | $ | 1,076 | $ | 26,252,670 | ||||||
|
|
|
|
|
| |||||||
Shares of beneficial interest | 5,876,498 | 89 | 2,663,484 | |||||||||
|
|
|
|
|
| |||||||
Net asset value, offering and redemption price per share | $ | 33.20 | $ | 12.03 | * | $ | 9.86 | |||||
|
|
|
|
|
| |||||||
Class Y shares: |
| |||||||||||
Net assets | $ | 6,506,433,779 | $ | 55,667,594 | $ | 333,233 | ||||||
|
|
|
|
|
| |||||||
Shares of beneficial interest | 196,016,782 | 4,629,577 | 33,844 | |||||||||
|
|
|
|
|
| |||||||
Net asset value, offering and redemption price per share | $ | 33.19 | $ | 12.02 | $ | 9.85 | ||||||
|
|
|
|
|
|
* | Net asset value calculations have been determined utilizing fractional share and penny amounts. |
See accompanying notes to financial statements.
| 48
Statements of Assets and Liabilities (continued)
June 30, 2018 (Unaudited)
Mirova Global Sustainable Equity Fund | ||||
ASSETS | ||||
Investments at cost | $ | 74,184,347 | ||
Net unrealized appreciation | 11,147,705 | |||
|
| |||
Investments at value | 85,332,052 | |||
Foreign currency at value (identified cost $201,253) | 198,537 | |||
Receivable for Fund shares sold | 93,914 | |||
Receivable for securities sold | 411,113 | |||
Dividends and interest receivable | 31,769 | |||
Tax reclaims receivable | 62,946 | |||
Prepaid expenses (Note 8) | 91 | |||
|
| |||
TOTAL ASSETS | 86,130,422 | |||
|
| |||
LIABILITIES | ||||
Payable for securities purchased | 826,555 | |||
Payable for Fund shares redeemed | 3,553 | |||
Management fees payable (Note 6) | 52,022 | |||
Deferred Trustees’ fees (Note 6) | 11,222 | |||
Administrative fees payable (Note 6) | 3,174 | |||
Payable to distributor (Note 6d) | 544 | |||
Other accounts payable and accrued expenses | 40,109 | |||
|
| |||
TOTAL LIABILITIES | 937,179 | |||
|
| |||
NET ASSETS | $ | 85,193,243 | ||
|
| |||
NET ASSETS CONSIST OF: |
| |||
Paid-in capital | $ | 71,269,906 | ||
Undistributed net investment income | 282,269 | |||
Accumulated net realized gain on investments and foreign currency transactions | 2,496,152 | |||
Net unrealized appreciation on investments and foreign currency translations | 11,144,916 | |||
|
| |||
NET ASSETS | $ | 85,193,243 | ||
|
|
See accompanying notes to financial statements.
49 |
Statements of Assets and Liabilities (continued)
June 30, 2018 (Unaudited)
Mirova Global Sustainable Equity Fund | ||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: |
| |||
Class A shares: |
| |||
Net assets | $ | 5,723,100 | ||
|
| |||
Shares of beneficial interest | 442,685 | |||
|
| |||
Net asset value and redemption price per share | $ | 12.93 | ||
|
| |||
Offering price per share (100/[100-maximum sales charge] of net asset value) (Note 1) | $ | 13.72 | ||
|
| |||
Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1) |
| |||
Net assets | $ | 2,136,384 | ||
|
| |||
Shares of beneficial interest | 167,687 | |||
|
| |||
Net asset value and offering price per share | $ | 12.74 | ||
|
| |||
Class N shares: |
| |||
Net assets | $ | 1,172 | ||
|
| |||
Shares of beneficial interest | 90 | |||
|
| |||
Net asset value, offering and redemption price per share | $ | 12.99 | * | |
|
| |||
Class Y shares: |
| |||
Net assets | $ | 77,332,587 | ||
|
| |||
Shares of beneficial interest | 5,954,201 | |||
|
| |||
Net asset value, offering and redemption price per share | $ | 12.99 | ||
|
|
* | Net asset value calculations have been determined utilizing fractional share and penny amounts. |
See accompanying notes to financial statements.
| 50
Statements of Operations
For the Six Months Ended June 30, 2018 (Unaudited)
Gateway Fund | Gateway Equity Call Premium Fund | Mirova Global Green Bond Fund | ||||||||||
INVESTMENT INCOME | ||||||||||||
Interest | $ | 872,834 | $ | 8,350 | $ | 221,897 | ||||||
Dividends | 81,940,180 | 644,182 | — | |||||||||
Less net foreign taxes withheld | (25,520 | ) | (388 | ) | (1,141 | ) | ||||||
|
|
|
|
|
| |||||||
82,787,494 | 652,144 | 220,756 | ||||||||||
|
|
|
|
|
| |||||||
Expenses | ||||||||||||
Management fees (Note 6) | 26,414,564 | 220,135 | 73,643 | |||||||||
Service and distribution fees (Note 6) | 3,532,564 | 10,588 | 913 | |||||||||
Administrative fees (Note 6) | 1,861,942 | 15,027 | 5,942 | |||||||||
Trustees’ fees and expenses (Note 6) | 125,861 | 9,746 | 8,875 | |||||||||
Transfer agent fees and expenses (Notes 6 and 7) | 2,915,674 | 20,352 | 2,549 | |||||||||
Audit and tax services fees | 25,482 | 24,813 | 20,913 | |||||||||
Custodian fees and expenses | 297,593 | 58,350 | 5,669 | |||||||||
Interest expense (Note 12) | — | — | 930 | |||||||||
Legal fees | 85,855 | 905 | 393 | |||||||||
Registration fees | 147,952 | 45,885 | 51,392 | |||||||||
Shareholder reporting expenses | 202,261 | 3,772 | 259 | |||||||||
Miscellaneous expenses (Note 8) | 128,603 | 7,946 | 5,798 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 35,738,351 | 417,519 | 177,276 | |||||||||
Less waiver and/or expense reimbursement (Note 6) | (2,953,044 | ) | (85,169 | ) | (88,171 | ) | ||||||
|
|
|
|
|
| |||||||
Net expenses | 32,785,307 | 332,350 | 89,105 | |||||||||
|
|
|
|
|
| |||||||
Net investment income | 50,002,187 | 319,794 | 131,651 | |||||||||
|
|
|
|
|
| |||||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS, OPTIONS WRITTEN AND FOREIGN CURRENCY TRANSACTIONS | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments | 234,571,219 | 8,380,500 | 296,793 | |||||||||
Futures contracts | — | — | 231,500 | |||||||||
Options written | (310,979,884 | ) | (2,783,575 | ) | — | |||||||
Foreign currency transactions (Note 2c) | 672 | (12 | ) | (15,379 | ) | |||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments | (88,761,589 | ) | (6,995,949 | ) | (1,044,986 | ) | ||||||
Futures contracts | — | — | 440,440 | |||||||||
Options written | 101,027,091 | 804,454 | — | |||||||||
Foreign currency translations (Note 2c) | 182 | — | (16,271 | ) | ||||||||
|
|
|
|
|
| |||||||
Net realized and unrealized loss on investments, futures contracts, options written and foreign currency transactions | (64,142,309 | ) | (594,582 | ) | (107,903 | ) | ||||||
|
|
|
|
|
| |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (14,140,122 | ) | $ | (274,788 | ) | $ | 23,748 | ||||
|
|
|
|
|
|
See accompanying notes to financial statements.
51 |
Statements of Operations (continued)
For the Six Months Ended June 30, 2018 (Unaudited)
Mirova Global Sustainable Equity Fund | ||||
INVESTMENT INCOME | ||||
Dividends | $ | 778,991 | ||
Interest | 11,233 | |||
Less net foreign taxes withheld | (63,057 | ) | ||
|
| |||
727,167 | ||||
|
| |||
Expenses | ||||
Management fees (Note 6) | 318,109 | |||
Service and distribution fees (Note 6) | 14,217 | |||
Administrative fees (Note 6) | 17,648 | |||
Trustees’ fees and expenses (Note 6) | 9,690 | |||
Transfer agent fees and expenses (Notes 6 and 7) | 28,465 | |||
Audit and tax services fees | 20,719 | |||
Custodian fees and expenses | 12,210 | |||
Legal fees | 858 | |||
Registration fees | 65,330 | |||
Shareholder reporting expenses | 5,281 | |||
Miscellaneous expenses (Note 8) | 9,643 | |||
|
| |||
Total expenses | 502,170 | |||
Less waiver and/or expense reimbursement (Note 6) | (68,938 | ) | ||
|
| |||
Net expenses | 433,232 | |||
|
| |||
Net investment income | 293,935 | |||
|
| |||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS | ||||
Net realized gain (loss) on: | ||||
Investments | 2,502,602 | |||
Foreign currency transactions (Note 2c) | (8,784 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (1,846,358 | ) | ||
Foreign currency translations (Note 2c) | (4,544 | ) | ||
|
| |||
Net realized and unrealized gain on investments and foreign currency transactions | 642,916 | |||
|
| |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 936,851 | ||
|
|
See accompanying notes to financial statements.
| 52
Statements of Changes in Net Assets
Gateway Fund | ||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017(a) | |||||||
FROM OPERATIONS: | ||||||||
Net investment income | $ | 50,002,187 | $ | 108,211,119 | ||||
Net realized gain (loss) on investments, options written and foreign currency transactions | (76,407,993 | ) | 897,676,782 | |||||
Net change in unrealized appreciation (depreciation) on investments, options written and foreign currency translations | 12,265,684 | (255,096,131 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (14,140,122 | ) | 750,791,770 | |||||
|
|
|
| |||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Net investment income | ||||||||
Class A | (8,490,757 | ) | (18,006,320 | ) | ||||
Class C | (634,146 | ) | (1,226,639 | ) | ||||
Class N | (1,403,771 | ) | (688,888 | ) | ||||
Class Y | (44,634,432 | ) | (76,225,048 | ) | ||||
|
|
|
| |||||
Total distributions | (55,163,106 | ) | (96,146,895 | ) | ||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 14) | 11,152,254 | 198,252,858 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets | (58,150,974 | ) | 852,897,733 | |||||
NET ASSETS | ||||||||
Beginning of the period | 8,525,065,732 | 7,672,167,999 | ||||||
|
|
|
| |||||
End of the period | $ | 8,466,914,758 | $ | 8,525,065,732 | ||||
|
|
|
| |||||
UNDISTRIBUTED NET INVESTMENT INCOME | $ | 2,016,762 | $ | 7,177,681 | ||||
|
|
|
|
(a) | From commencement of operations on May 1, 2017 through December 31, 2017 for Class N shares. |
See accompanying notes to financial statements.
53 |
Statements of Changes in Net Assets (continued)
Gateway Equity Call Premium Fund | ||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017(a) | |||||||
FROM OPERATIONS: | ||||||||
Net investment income | $ | 319,794 | $ | 838,868 | ||||
Net realized gain (loss) on investments, options written and foreign currency transactions | 5,596,913 | (3,804,249 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments and options written | (6,191,495 | ) | 11,946,061 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | (274,788 | ) | 8,980,680 | |||||
|
|
|
| |||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Net investment income | ||||||||
Class A | (14,839 | ) | (68,042 | ) | ||||
Class C | (392 | ) | (534 | ) | ||||
Class N | (6 | ) | (9 | ) | ||||
Class Y | (297,556 | ) | (756,852 | ) | ||||
|
|
|
| |||||
Total distributions | (312,793 | ) | (825,437 | ) | ||||
|
|
|
| |||||
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 14) | (19,742,708 | ) | 2,223,758 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets | (20,330,289 | ) | 10,379,001 | |||||
NET ASSETS | ||||||||
Beginning of the period | 80,988,689 | 70,609,688 | ||||||
|
|
|
| |||||
End of the period | $ | 60,658,400 | $ | 80,988,689 | ||||
|
|
|
| |||||
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME | $ | (22,595 | ) | $ | (29,596 | ) | ||
|
|
|
|
(a) | From commencement of operations on May 1, 2017 through December 31, 2017 for Class N shares. |
See accompanying notes to financial statements.
| 54
Statements of Changes in Net Assets (continued)
Mirova Global Green Bond Fund | ||||||||
Six Months Ended June 30, 2018 (Unaudited) | Period Ended December 31, 2017(a) | |||||||
FROM OPERATIONS: | ||||||||
Net investment income | $ | 131,651 | $ | 160,877 | ||||
Net realized gain (loss) on investments, futures contracts and foreign currency transactions | 512,914 | (849,209 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments, futures contracts and foreign currency translations | (620,817 | ) | 1,122,636 | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 23,748 | 434,304 | ||||||
|
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|
| |||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Net investment income | ||||||||
Class A | (9,307 | ) | (1,938 | ) | ||||
Class N | (332,032 | ) | (501,290 | ) | ||||
Class Y | (3,251 | ) | (675 | ) | ||||
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|
|
| |||||
Total distributions | (344,590 | ) | (503,903 | ) | ||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 14) | 1,827,298 | 26,057,599 | ||||||
|
|
|
| |||||
Net increase in net assets | 1,506,456 | 25,988,000 | ||||||
NET ASSETS | ||||||||
Beginning of the period | 25,988,000 | — | ||||||
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|
|
| |||||
End of the period | $ | 27,494,456 | $ | 25,988,000 | ||||
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|
|
| |||||
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME | $ | (18,827 | ) | $ | 194,112 | |||
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|
|
(a) | From commencement of operations on February 28, 2017 through December 31, 2017. |
See accompanying notes to financial statements.
55 |
Statements of Changes in Net Assets (continued)
Mirova Global Sustainable Equity Fund | ||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017(a) | |||||||
FROM OPERATIONS: | ||||||||
Net investment income | $ | 293,935 | $ | 149,782 | ||||
Net realized gain on investments and foreign currency transactions | 2,493,818 | 1,197,299 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations | (1,850,902 | ) | 14,328,437 | |||||
|
|
|
| |||||
Net increase in net assets resulting from operations | 936,851 | 15,675,518 | ||||||
|
|
|
| |||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
Net investment income | ||||||||
Class A | — | (6,999 | ) | |||||
Class N | — | (3 | ) | |||||
Class Y | — | (148,952 | ) | |||||
Net realized capital gains | ||||||||
Class A | (29,731 | ) | (29,257 | ) | ||||
Class C | (11,027 | ) | (10,251 | ) | ||||
Class N | (7 | ) | (10 | ) | ||||
Class Y | (454,703 | ) | (563,786 | ) | ||||
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|
|
| |||||
Total distributions | (495,468 | ) | (759,258 | ) | ||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 14) | 16,966,705 | 3,152,882 | ||||||
|
|
|
| |||||
Net increase in net assets | 17,408,088 | 18,069,142 | ||||||
NET ASSETS | ||||||||
Beginning of the period | 67,785,155 | 49,716,013 | ||||||
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| |||||
End of the period | $ | 85,193,243 | $ | 67,785,155 | ||||
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| |||||
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME | $ | 282,269 | $ | (11,666 | ) | |||
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|
|
(a) | From commencement of operations on May 1, 2017 through December 31, 2017 for Class N shares. |
See accompanying notes to financial statements.
| 56
Financial Highlights
For a share outstanding throughout each period.
Gateway Fund—Class A | ||||||||||||||||||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||
Net asset value, beginning of the period | $ | 33.47 | $ | 30.84 | $ | 29.72 | $ | 29.58 | $ | 29.00 | $ | 27.13 | ||||||||||||
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| |||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(a) | 0.17 | 0.39 | 0.41 | 0.57 | (b) | 0.39 | 0.43 | |||||||||||||||||
Net realized and unrealized gain (loss) | (0.24 | ) | 2.58 | 1.13 | 0.12 | 0.57 | 1.82 | |||||||||||||||||
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|
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| |||||||||||||
Total from Investment Operations | (0.07 | ) | 2.97 | 1.54 | 0.69 | 0.96 | 2.25 | |||||||||||||||||
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| |||||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.34 | ) | (0.42 | ) | (0.55 | ) | (0.38 | ) | (0.38 | ) | ||||||||||||
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| |||||||||||||
Net asset value, end of the period | $ | 33.21 | $ | 33.47 | $ | 30.84 | $ | 29.72 | $ | 29.58 | $ | 29.00 | ||||||||||||
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| |||||||||||||
Total return(c)(d) | (0.21 | )%(e) | 9.66 | % | 5.23 | % | 2.34 | % | 3.33 | % | 8.39 | % | ||||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 1,455,894 | $ | 1,669,272 | $ | 1,755,576 | $ | 1,864,118 | $ | 1,976,457 | $ | 2,351,788 | ||||||||||||
Net expenses(f) | 0.94 | %(g) | 0.94 | % | 0.94 | % | 0.94 | % | 0.94 | % | 0.94 | % | ||||||||||||
Gross expenses | 1.02 | %(g) | 1.02 | % | 1.02 | % | 1.01 | % | 1.02 | % | 1.03 | % | ||||||||||||
Net investment income | 1.03 | %(g) | 1.20 | % | 1.39 | % | 1.91 | %(b) | 1.33 | % | 1.51 | % | ||||||||||||
Portfolio turnover rate | 4 | % | 34 | % | 14 | % | 10 | % | 13 | % | 10 | % |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.37, and the ratio of net investment income to average net assets would have been 1.24%. |
(c) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(d) | A sales charge for Class A shares is not reflected in total return calculations. |
(e) | Periods less than one year are not annualized. |
(f) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(g) | Computed on an annualized basis for periods less than one year. |
See accompanying notes to financial statements.
57 |
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Fund—Class C | ||||||||||||||||||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||
Net asset value, beginning of the period | $ | 33.32 | $ | 30.72 | $ | 29.61 | $ | 29.48 | $ | 28.90 | $ | 27.04 | ||||||||||||
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|
| |||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(a) | 0.04 | 0.14 | 0.19 | 0.34 | (b) | 0.17 | 0.21 | |||||||||||||||||
Net realized and unrealized gain (loss) | (0.24 | ) | 2.57 | 1.11 | 0.12 | 0.57 | 1.82 | |||||||||||||||||
|
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|
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|
|
|
|
|
|
|
| |||||||||||||
Total from Investment Operations | (0.20 | ) | 2.71 | 1.30 | 0.46 | 0.74 | 2.03 | |||||||||||||||||
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|
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|
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|
|
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|
| |||||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.11 | ) | (0.19 | ) | (0.33 | ) | (0.16 | ) | (0.17 | ) | ||||||||||||
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|
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|
|
|
|
|
| |||||||||||||
Net asset value, end of the period | $ | 33.05 | $ | 33.32 | $ | 30.72 | $ | 29.61 | $ | 29.48 | $ | 28.90 | ||||||||||||
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| |||||||||||||
Total return(c)(d) | (0.61 | )%(e) | 8.85 | % | 4.42 | % | 1.54 | % | 2.58 | % | 7.58 | % | ||||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 309,503 | $ | 336,891 | $ | 366,584 | $ | 387,235 | $ | 353,339 | $ | 331,465 | ||||||||||||
Net expenses(f) | 1.70 | %(g) | 1.70 | % | 1.70 | % | 1.70 | % | 1.70 | % | 1.70 | % | ||||||||||||
Gross expenses | 1.77 | %(g) | 1.77 | % | 1.77 | % | 1.76 | % | 1.77 | % | 1.78 | % | ||||||||||||
Net investment income | 0.27 | %(g) | 0.44 | % | 0.63 | % | 1.15 | %(b) | 0.57 | % | 0.75 | % | ||||||||||||
Portfolio turnover rate | 4 | % | 34 | % | 14 | % | 10 | % | 13 | % | 10 | % |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.15, and the ratio of net investment income to average net assets would have been 0.51%. |
(c) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(d) | A contingent deferred sales charge for Class C shares is not reflected in total return calculations. |
(e) | Periods less than one year are not annualized. |
(f) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(g) | Computed on an annualized basis for periods less than one year. |
See accompanying notes to financial statements.
| 58
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Fund—Class N | ||||||||
Six Months Ended June 30, 2018 (Unaudited) | Period Ended December 31, 2017* | |||||||
Net asset value, beginning of the period | $ | 33.46 | $ | 31.89 | ||||
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| |||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.22 | 0.32 | ||||||
Net realized and unrealized gain (loss) | (0.24 | ) | 1.56 | |||||
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| |||||
Total from Investment Operations | (0.02 | ) | 1.88 | |||||
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| |||||
LESS DISTRIBUTIONS FROM: | ||||||||
Net investment income | (0.24 | ) | (0.31 | ) | ||||
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| |||||
Net asset value, end of the period | $ | 33.20 | $ | 33.46 | ||||
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| |||||
Total return(b)(c) | (0.06 | )% | 5.93 | % | ||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||
Net assets, end of the period (000’s) | $ | 195,083 | $ | 126,262 | ||||
Net expenses(d)(e) | 0.65 | % | 0.65 | % | ||||
Gross expenses(e) | 0.72 | % | 0.74 | % | ||||
Net investment income(e) | 1.32 | % | 1.42 | % | ||||
Portfolio turnover rate | 4 | % | 34 | %(f) |
* | From commencement of Class operations on May 1, 2017 through December 31, 2017. |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(c) | Periods less than one year are not annualized. |
(d) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(e) | Computed on an annualized basis for periods less than one year. |
(f) | Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017. |
See accompanying notes to financial statements.
59 |
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Fund—Class Y | ||||||||||||||||||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||
Net asset value, beginning of the period | $ | 33.46 | $ | 30.83 | $ | 29.71 | $ | 29.57 | $ | 28.99 | $ | 27.12 | ||||||||||||
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| |||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(a) | 0.21 | 0.47 | 0.49 | 0.64 | (b) | 0.46 | 0.50 | |||||||||||||||||
Net realized and unrealized gain (loss) | (0.25 | ) | 2.58 | 1.12 | 0.12 | 0.57 | 1.82 | |||||||||||||||||
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| |||||||||||||
Total from Investment Operations | (0.04 | ) | 3.05 | 1.61 | 0.76 | 1.03 | 2.32 | |||||||||||||||||
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| |||||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||||||
Net investment income | (0.23 | ) | (0.42 | ) | (0.49 | ) | (0.62 | ) | (0.45 | ) | (0.45 | ) | ||||||||||||
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| |||||||||||||
Net asset value, end of the period | $ | 33.19 | $ | 33.46 | $ | 30.83 | $ | 29.71 | $ | 29.57 | $ | 28.99 | ||||||||||||
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| |||||||||||||
Total return(c) | (0.11 | )%(d) | 9.93 | % | 5.48 | % | 2.59 | % | 3.58 | % | 8.65 | % | ||||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 6,506,434 | $ | 6,392,640 | $ | 5,550,008 | $ | 6,012,987 | $ | 5,814,900 | $ | 5,520,003 | ||||||||||||
Net expenses(e) | 0.70 | %(f) | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||||
Gross expenses | 0.77 | %(f) | 0.77 | % | 0.77 | % | 0.76 | % | 0.77 | % | 0.78 | % | ||||||||||||
Net investment income | 1.27 | %(f) | 1.44 | % | 1.63 | % | 2.16 | %(b) | 1.57 | % | 1.76 | % | ||||||||||||
Portfolio turnover rate | 4 | % | 34 | % | 14 | % | 10 | % | 13 | % | 10 | % |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.45, and the ratio of net investment income to average net assets would have been 1.51%. |
(c) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(d) | Periods less than one year are not annualized. |
(e) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(f) | Computed on an annualized basis for periods less than one year. |
See accompanying notes to financial statements.
| 60
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Equity Call Premium Fund—Class A | ||||||||||||||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Period Ended December 31, 2014* | ||||||||||||||||
Net asset value, beginning of the period | $ | 12.08 | $ | 10.89 | $ | 10.22 | $ | 9.96 | $ | 10.00 | ||||||||||
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| |||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(a) | 0.04 | 0.10 | 0.11 | 0.15 | (b) | 0.02 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.06 | ) | 1.18 | 0.66 | 0.24 | (0.02 | ) | |||||||||||||
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| |||||||||||
Total from Investment Operations | (0.02 | ) | 1.28 | 0.77 | 0.39 | 0.00 | (c) | |||||||||||||
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| |||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||
Net investment income | (0.04 | ) | (0.09 | ) | (0.10 | ) | (0.13 | ) | (0.04 | ) | ||||||||||
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| |||||||||||
Net asset value, end of the period | $ | 12.02 | $ | 12.08 | $ | 10.89 | $ | 10.22 | $ | 9.96 | ||||||||||
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| |||||||||||
Total return(d)(e) | (0.14 | )%(f) | 11.80 | % | 7.58 | % | 3.90 | % | 0.00 | %(f) | ||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 4,126 | $ | 7,085 | $ | 6,507 | $ | 3,855 | $ | 96 | ||||||||||
Net expenses(g) | 1.20 | %(h) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | %(h) | ||||||||||
Gross expenses | 1.46 | %(h) | 1.30 | % | 1.31 | % | 1.70 | % | 3.69 | %(h) | ||||||||||
Net investment income | 0.71 | %(h) | 0.85 | % | 1.02 | % | 1.47 | %(b) | 0.84 | %(h) | ||||||||||
Portfolio turnover rate | 22 | % | 19 | % | 24 | % | 38 | % | 7 | % |
* | From commencement of Class operations on September 30, 2014 through December 31, 2014. |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.10 and the ratio of net investment income to average net assets would have been 0.98%. |
(c) | Amount rounds to less than $0.01 per share. |
(d) | A sales charge for Class A shares is not reflected in total return calculations. |
(e) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(f) | Periods less than one year are not annualized. |
(g) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(h) | Computed on an annualized basis for periods less than one year. |
See accompanying notes to financial statements.
61 |
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Equity Call Premium Fund—Class C | ||||||||||||||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Period Ended December 31, 2014* | ||||||||||||||||
Net asset value, beginning of the period | $ | 12.05 | $ | 10.87 | $ | 10.22 | $ | 9.97 | $ | 10.00 | ||||||||||
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| |||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income( loss)(a) | (0.00 | )(b) | 0.01 | 0.02 | 0.09 | (c) | 0.00 | (b) | ||||||||||||
Net realized and unrealized gain (loss) | (0.05 | ) | 1.18 | 0.68 | 0.22 | (0.01 | ) | |||||||||||||
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| |||||||||||
Total from Investment Operations | (0.05 | ) | 1.19 | 0.70 | 0.31 | (0.01 | ) | |||||||||||||
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| |||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||
Net investment income | (0.01 | ) | (0.01 | ) | (0.05 | ) | (0.06 | ) | (0.02 | ) | ||||||||||
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| |||||||||||
Net asset value, end of the period | $ | 11.99 | $ | 12.05 | $ | 10.87 | $ | 10.22 | $ | 9.97 | ||||||||||
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| |||||||||||
Total return(d)(e) | (0.45 | )%(f) | 10.95 | % | 6.85 | % | 3.07 | % | (0.12 | )%(f) | ||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 864 | $ | 648 | $ | 524 | $ | 37 | $ | 1 | ||||||||||
Net expenses(g) | 1.95 | %(h) | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | %(h) | ||||||||||
Gross expenses | 2.20 | %(h) | 2.05 | % | 1.98 | % | 2.40 | % | 4.37 | %(h) | ||||||||||
Net investment income (loss) | (0.02 | )%(h) | 0.10 | % | 0.23 | % | 0.85 | %(c) | 0.01 | %(h) | ||||||||||
Portfolio turnover rate | 22 | % | 19 | % | 24 | % | 38 | % | 7 | % |
* | From commencement of Class operations on September 30, 2014 through December 31, 2014. |
(a) | Per share net investment income (loss) has been calculated using the average shares outstanding during the period. |
(b) | Amount rounds to less than $0.01 per share. |
(c) | Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.07 and the ratio of net investment income to average net assets would have been 0.72%. |
(d) | A contingent deferred sales charge for Class C shares is not reflected in total return calculations. |
(e) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(f) | Periods less than one year are not annualized. |
(g) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(h) | Computed on an annualized basis for periods less than one year. |
See accompanying notes to financial statements.
| 62
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Equity Call Premium Fund—Class N | ||||||||
Six Months Ended June 30, 2018 (Unaudited) | Period Ended December 31, 2017* | |||||||
Net asset value, beginning of the period | $ | 12.09 | $ | 11.34 | ||||
|
|
|
| |||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.06 | 0.10 | ||||||
Net realized and unrealized gain (loss) | (0.06 | ) | 0.75 | |||||
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|
|
| |||||
Total from Investment Operations | 0.00 | (b) | 0.85 | |||||
|
|
|
| |||||
LESS DISTRIBUTIONS FROM: | ||||||||
Net investment income | (0.06 | ) | (0.10 | ) | ||||
|
|
|
| |||||
Net asset value, end of the period | $ | 12.03 | $ | 12.09 | ||||
|
|
|
| |||||
Total return(c)(d) | 0.04 | % | 7.50 | % | ||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||
Net assets, end of the period (000’s) | $ | 1 | $ | 1 | ||||
Net expenses(e)(f) | 0.90 | % | 0.90 | % | ||||
Gross expenses(f) | 14.87 | % | 14.26 | % | ||||
Net investment income(f) | 1.00 | % | 1.22 | % | ||||
Portfolio turnover rate | 22 | % | 19 | %(g) |
* | From commencement of Class operations on May 1, 2017 through December 31, 2017. |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Amount rounds to less than $0.01 per share. |
(c) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(d) | Periods less than one year are not annualized. |
(e) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(f) | Computed on an annualized basis for periods less than one year. |
(g) | Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017. |
See accompanying notes to financial statements.
63 |
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Equity Call Premium Fund—Class Y | ||||||||||||||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Period Ended December 31, 2014* | ||||||||||||||||
Net asset value, beginning of the period | $ | 12.09 | $ | 10.89 | $ | 10.22 | $ | 9.97 | $ | 10.00 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||
Net investment income(a) | 0.06 | 0.13 | 0.13 | 0.16 | (b) | 0.02 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.07 | ) | 1.19 | 0.67 | 0.24 | (0.01 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from Investment Operations | (0.01 | ) | 1.32 | 0.80 | 0.40 | 0.01 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||
Net investment income | (0.06 | ) | (0.12 | ) | (0.13 | ) | (0.15 | ) | (0.04 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of the period | $ | 12.02 | $ | 12.09 | $ | 10.89 | $ | 10.22 | $ | 9.97 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total return(c) | (0.07 | )%(d) | 12.21 | % | 7.83 | % | 4.03 | % | 0.13 | %(d) | ||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 55,668 | $ | 73,255 | $ | 63,578 | $ | 50,334 | $ | 20,815 | ||||||||||
Net expenses(e) | 0.95 | %(f) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | %(f) | ||||||||||
Gross expenses | 1.20 | %(f) | 1.05 | % | 1.06 | % | 1.45 | % | 3.54 | %(f) | ||||||||||
Net investment income | 0.98 | %(f) | 1.10 | % | 1.27 | % | 1.59 | %(b) | 0.99 | %(f) | ||||||||||
Portfolio turnover rate | 22 | % | 19 | % | 24 | % | 38 | % | 7 | % |
* | From commencement of Class operations on September 30, 2014 through December 31, 2014. |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.12 and the ratio of net investment income to average net assets would have been 1.20%. |
(c) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(d) | Periods less than one year are not annualized. |
(e) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(f) | Computed on an annualized basis for periods less than one year. |
See accompanying notes to financial statements.
| 64
Financial Highlights (continued)
For a share outstanding throughout each period.
Mirova Global Green Bond—Class A | ||||||||
Six Months Ended June 30, 2018 (Unaudited) | Period Ended December 31, 2017* | |||||||
Net asset value, beginning of the period | $ | 9.96 | $ | 10.00 | ||||
|
|
|
| |||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.04 | 0.04 | ||||||
Net realized and unrealized gain (loss) | (0.05 | ) | 0.11 | |||||
|
|
|
| |||||
Total from Investment Operations | (0.01 | ) | 0.15 | |||||
|
|
|
| |||||
LESS DISTRIBUTIONS FROM: | ||||||||
Net investment income | (0.11 | ) | (0.19 | ) | ||||
|
|
|
| |||||
Net asset value, end of the period | $ | 9.84 | $ | 9.96 | ||||
|
|
|
| |||||
Total return(b)(c)(d) | (0.06 | )% | 1.46 | % | ||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||
Net assets, end of the period (000’s) | $ | 909 | $ | 139 | ||||
Net expenses(e)(f) | 0.96 | %(g) | 0.96 | %(h) | ||||
Gross expenses(f) | 2.05 | %(g) | 5.23 | %(h) | ||||
Net investment income(f) | 0.72 | % | 0.49 | % | ||||
Portfolio turnover rate | 29 | % | 46 | % |
* | From commencement of Class operations on February 28, 2017 through December 31, 2017. |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | A sales charge for Class A shares is not reflected in total return calculations. |
(c) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(d) | Periods less than one year are not annualized. |
(e) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(f) | Computed on an annualized basis for periods less than one year. |
(g) | Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 2.05%. |
(h) | Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 5.22%. |
See accompanying notes to financial statements.
65 |
Financial Highlights (continued)
For a share outstanding throughout each period.
Mirova Global Green Bond—Class N | ||||||||
Six Months Ended June 30, 2018 (Unaudited) | Period Ended December 31, 2017* | |||||||
Net asset value, beginning of the period | $ | 9.98 | $ | 10.00 | ||||
|
|
|
| |||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.05 | 0.06 | ||||||
Net realized and unrealized gain (loss) | (0.04 | ) | 0.12 | |||||
|
|
|
| |||||
Total from Investment Operations | 0.01 | 0.18 | ||||||
|
|
|
| |||||
LESS DISTRIBUTIONS FROM: | ||||||||
Net investment income | (0.13 | ) | (0.20 | ) | ||||
|
|
|
| |||||
Net asset value, end of the period | $ | 9.86 | $ | 9.98 | ||||
|
|
|
| |||||
Total return(b)(c) | 0.06 | % | 1.77 | % | ||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||
Net assets, end of the period (000’s) | $ | 26,253 | $ | 25,805 | ||||
Net expenses(d)(e) | 0.66 | %(f) | 0.67 | %(g) | ||||
Gross expenses(e) | 1.30 | %(f) | 1.11 | %(g) | ||||
Net investment income(e) | 0.99 | % | 0.75 | % | ||||
Portfolio turnover rate | 29 | % | 46 | % |
* | From commencement of Class operations on February 28, 2017 through December 31, 2017. |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(c) | Periods less than one year are not annualized. |
(d) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(e) | Computed on an annualized basis for periods less than one year. |
(f) | Includes interest expense. Without this expense the ratio of net expenses would have been 0.65% and the ratio of gross expenses would have been 1.29%. |
(g) | Includes interest expense. Without this expense the ratio of net expenses would have been 0.65% and the ratio of gross expenses would have been 1.10%. |
See accompanying notes to financial statements.
| 66
Financial Highlights (continued)
For a share outstanding throughout each period.
Mirova Global Green Bond—Class Y | ||||||||
Six Months Ended June 30, 2018 (Unaudited) | Period Ended December 31, 2017* | |||||||
Net asset value, beginning of the period | $ | 9.97 | $ | 10.00 | ||||
|
|
|
| |||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.05 | 0.06 | ||||||
Net realized and unrealized gain (loss) | (0.05 | ) | 0.11 | |||||
|
|
|
| |||||
Total from Investment Operations | 0.00 | (b) | 0.17 | |||||
|
|
|
| |||||
LESS DISTRIBUTIONS FROM: | ||||||||
Net investment income | (0.12 | ) | (0.20 | ) | ||||
|
|
|
| |||||
Net asset value, end of the period | $ | 9.85 | $ | 9.97 | ||||
|
|
|
| |||||
Total return(c)(d) | 0.05 | % | 1.66 | % | ||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||
Net assets, end of the period (000’s) | $ | 333 | $ | 43 | ||||
Net expenses(e)(f) | 0.70 | %(g) | 0.71 | %(h) | ||||
Gross expenses(f) | 1.88 | %(g) | 3.62 | %(h) | ||||
Net investment income(f) | 0.99 | % | 0.71 | % | ||||
Portfolio turnover rate | 29 | % | 46 | % |
* | From commencement of Class operations on February 28, 2017 through December 31, 2017. |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Amount rounds to less than $0.01 per share. |
(c) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(d) | Periods less than one year are not annualized. |
(e) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(f) | Computed on an annualized basis for periods less than one year. |
(g) | Includes interest expense of less than 0.01%. |
(h) | Includes interest expense. Without this expense the ratio of net expenses would have been 0.70% and the ratio of gross expenses would have been 3.62%. |
See accompanying notes to financial statements.
67 |
Financial Highlights (continued)
For a share outstanding throughout each period.
Mirova Global Sustainable Equity Fund—Class A | ||||||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | Period Ended December 31, 2016* | ||||||||||
Net asset value, beginning of the period | $ | 12.77 | $ | 9.90 | $ | 10.00 | ||||||
|
|
|
|
|
| |||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income (loss)(a) | 0.04 | (0.04 | ) | 0.02 | ||||||||
Net realized and unrealized gain (loss) | 0.20 | 3.06 | (0.11 | ) | ||||||||
|
|
|
|
|
| |||||||
Total from Investment Operations | 0.24 | 3.02 | (0.09 | ) | ||||||||
|
|
|
|
|
| |||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||
Net investment income | — | (0.03 | ) | (0.00 | )(b) | |||||||
Net realized capital gains | (0.08 | ) | (0.12 | ) | (0.01 | ) | ||||||
|
|
|
|
|
| |||||||
Total Distributions | (0.08 | ) | (0.15 | ) | (0.01 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of the period | $ | 12.93 | $ | 12.77 | $ | 9.90 | ||||||
|
|
|
|
|
| |||||||
Total return(c)(d) | 1.88 | %(e) | 30.44 | % | (0.85 | )%(e) | ||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||
Net assets, end of the period (000’s) | $ | 5,723 | $ | 3,260 | $ | 71 | ||||||
Net expenses(f) | 1.30 | %(g) | 1.29 | % | 1.30 | %(g) | ||||||
Gross expenses | 1.47 | %(g) | 1.43 | % | 1.72 | %(g) | ||||||
Net investment income (loss) | 0.57 | %(g) | (0.36 | )% | 0.23 | %(g) | ||||||
Portfolio turnover rate | 9 | % | 20 | % | 20 | % |
* | From commencement of Class operations on March 31, 2016 through December 31, 2016. |
(a) | Per share net investment income (loss) has been calculated using the average shares outstanding during the period. |
(b) | Amount rounds to less than $0.01 per share. |
(c) | A sales charge for Class A shares is not reflected in total return calculations. |
(d) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(e) | Periods less than one year are not annualized. |
(f) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(g) | Computed on an annualized basis for periods less than one year. |
See accompanying notes to financial statements.
| 68
Financial Highlights (continued)
For a share outstanding throughout each period.
Mirova Global Sustainable Equity Fund—Class C | ||||||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | Period Ended December 31, 2016* | ||||||||||
Net asset value, beginning of the period | $ | 12.63 | $ | 9.85 | $ | 10.00 | ||||||
|
|
|
|
|
| |||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment loss(a) | (0.01 | ) | (0.12 | ) | (0.06 | ) | ||||||
Net realized and unrealized gain (loss) | 0.20 | 3.02 | (0.08 | ) | ||||||||
|
|
|
|
|
| |||||||
Total from Investment Operations | 0.19 | 2.90 | (0.14 | ) | ||||||||
|
|
|
|
|
| |||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||
Net realized capital gains | (0.08 | ) | (0.12 | ) | (0.01 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of the period | $ | 12.74 | $ | 12.63 | $ | 9.85 | ||||||
|
|
|
|
|
| |||||||
Total return(b)(c) | 1.50 | %(d) | 29.40 | % | (1.39 | )%(d) | ||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||
Net assets, end of the period (000’s) | $ | 2,136 | $ | 1,164 | $ | 52 | ||||||
Net expenses(e) | 2.05 | %(f) | 2.04 | % | 2.05 | %(f) | ||||||
Gross expenses | 2.22 | %(f) | 2.18 | % | 2.20 | %(f) | ||||||
Net investment loss | (0.14 | )%(f) | (1.02 | )% | (0.77 | )%(f) | ||||||
Portfolio turnover rate | 9 | % | 20 | % | 20 | % |
* | From commencement of Class operations on March 31, 2016 through December 31, 2016. |
(a) | Per share net investment loss has been calculated using the average shares outstanding during the period. |
(b) | A contingent deferred sales charge for Class C shares is not reflected in total return calculations. |
(c) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(d) | Periods less than one year are not annualized. |
(e) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(f) | Computed on an annualized basis for periods less than one year. |
See accompanying notes to financial statements.
69 |
Financial Highlights (continued)
For a share outstanding throughout each period.
Mirova Global Sustainable Equity Fund—Class N | ||||||||
Six Months Ended June 30, 2018 (Unaudited) | Period Ended December 31, 2017* | |||||||
Net asset value, beginning of the period | $ | 12.81 | $ | 11.29 | ||||
|
|
|
| |||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||
Net investment income(a) | 0.05 | 0.02 | ||||||
Net realized and unrealized gain (loss) | 0.21 | 1.66 | ||||||
|
|
|
| |||||
Total from Investment Operations | 0.26 | 1.68 | ||||||
|
|
|
| |||||
LESS DISTRIBUTIONS FROM: | ||||||||
Net investment income | — | (0.04 | ) | |||||
Net realized capital gains | (0.08 | ) | (0.12 | ) | ||||
|
|
|
| |||||
Total Distributions | (0.08 | ) | (0.16 | ) | ||||
|
|
|
| |||||
Net asset value, end of the period | $ | 12.99 | $ | 12.81 | ||||
|
|
|
| |||||
Total return(b)(c) | 2.02 | % | 14.81 | % | ||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||
Net assets, end of the period (000’s) | $ | 1 | $ | 1 | ||||
Net expenses(d)(e) | 1.00 | % | 1.00 | % | ||||
Gross expenses(e) | 16.17 | % | 14.30 | % | ||||
Net investment income(e) | 0.76 | % | 0.29 | % | ||||
Portfolio turnover rate | 9 | % | 20 | %(f) |
* | From commencement of Class operations on May 1, 2017 through December 31, 2017. |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(c) | Periods less than one year are not annualized. |
(d) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(e) | Computed on an annualized basis for periods less than one year. |
(f) | Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017. |
See accompanying notes to financial statements.
| 70
Financial Highlights (continued)
For a share outstanding throughout each period.
Mirova Global Sustainable Equity Fund—Class Y | ||||||||||||
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | Period Ended December 31, 2016* | ||||||||||
Net asset value, beginning of the period | $ | 12.81 | $ | 9.91 | $ | 10.00 | ||||||
|
|
|
|
|
| |||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.05 | 0.03 | 0.03 | |||||||||
Net realized and unrealized gain (loss) | 0.21 | 3.02 | (0.10 | ) | ||||||||
|
|
|
|
|
| |||||||
Total from Investment Operations | 0.26 | 3.05 | (0.07 | ) | ||||||||
|
|
|
|
|
| |||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||
Net investment income | — | (0.03 | ) | (0.01 | ) | |||||||
Net realized capital gains | (0.08 | ) | (0.12 | ) | (0.01 | ) | ||||||
|
|
|
|
|
| |||||||
Total Distributions | (0.08 | ) | (0.15 | ) | (0.02 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of the period | $ | 12.99 | $ | 12.81 | $ | 9.91 | ||||||
|
|
|
|
|
| |||||||
Total return(b) | 2.02 | %(c) | 30.75 | % | (0.70 | )%(c) | ||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||
Net assets, end of the period (000’s) | $ | 77,333 | $ | 63,359 | $ | 49,593 | ||||||
Net expenses(d) | 1.05 | %(e) | 1.04 | % | 1.05 | %(e) | ||||||
Gross expenses | 1.23 | %(e) | 1.16 | % | 1.21 | %(e) | ||||||
Net investment income | 0.77 | %(e) | 0.26 | % | 0.35 | %(e) | ||||||
Portfolio turnover rate | 9 | % | 20 | % | 20 | % |
* | From commencement of Class operations on March 31, 2016 through December 31, 2016. |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Had certain expenses not been waived/reimbursed during the period, total returns would have been lower. |
(c) | Periods less than one year are not annualized. |
(d) | The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher. |
(e) | Computed on an annualized basis for periods less than one year. |
See accompanying notes to financial statements.
71 |
June 30, 2018 (Unaudited)
1. Organization. Gateway Trust and Natixis Funds Trust I (the “Trusts” and each a “Trust”) are each organized as a Massachusetts business trust. Each Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Each Declaration of Trust permits the Board of Trustees to authorize the issuance of an unlimited number of shares of the Trust in multiple series. The financial statements for certain funds of the Trusts are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:
Gateway Trust:
Gateway Fund
Gateway Equity Call Premium Fund
Natixis Funds Trust I:
Mirova Global Green Bond Fund (the “Global Green Bond Fund”)
Mirova Global Sustainable Equity Fund (the “Global Sustainable Equity Fund”)
Each Fund is a diversified investment company, except for the Global Green Bond Fund which is a non-diversified investment company.
Each Fund offers Class A, Class N and Class Y shares. Gateway Fund, Gateway Equity Call Premium Fund and Global Sustainable Equity Fund also offer Class C shares. Class T shares of Gateway Fund, Gateway Equity Call Premium Fund and Global Sustainable Equity Fund are not currently available for purchase.
Class A shares are sold with a maximum front-end sales charge of 5.75% for Gateway Fund, Gateway Equity Call Premium Fund and Global Sustainable Equity Fund and 4.25% for Global Green Bond Fund. Class C shares do not pay a front-end sales charge, pay higher Rule 12b-1 fees than Class A shares for ten years (at which point they automatically convert to Class A shares) and may be subject to a contingent deferred sales charge (“CDSC”) of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are offered with an initial minimum investment of $1,000,000. Class Y shares are offered with an initial minimum investment of $100,000. Certain categories of investors are exempted from the minimum investment amounts for Class N and Class Y as outlined in the relevant Funds’ prospectus.
Most expenses can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV and Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”) and Natixis ETF Trust. Expenses of the Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (such as the Rule 12b-1 fees applicable to Class A and
| 72
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
Class C), and transfer agent fees are borne collectively for Class A, Class C and Class Y, and individually for Class N. In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of the Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.
2. Significant Accounting Policies. The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements follow the accounting and reporting guidelines provided for investment companies and are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions subsequent to period-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.
a. Valuation. Fund securities and other investments are valued at market value based on market quotations obtained or determined by independent pricing services recommended by the adviser or subadviser and approved by the Board of Trustees. Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser or subadviser pursuant to procedures approved by the Board of Trustees, as described below. Market value is determined as follows:
Listed equity securities (including shares of closed-end investment companies and exchange-traded funds) are valued at the last sale price quoted on the exchange where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking an NOCP, at the most recent bid quotations on the applicable NASDAQ Market. Unlisted equity securities (except unlisted preferred equity securities) are valued at the last sale price quoted in the market where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. If there is no last sale price or closing bid quotation available, unlisted equity securities will be valued using evaluated bids furnished by an independent pricing service, if available. In some foreign markets, an official close price and a last sale price may be available from the foreign exchange or market. In those cases, the official close price is used. Debt securities and unlisted preferred equity securities are valued based on evaluated bids furnished to the Fund by an independent pricing service or bid prices obtained from broker-dealers. Broker-dealer
73 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
bid prices may be used to value debt and unlisted equity securities where an independent pricing service is unable to price a security or where an independent pricing service does not provide a reliable price for the security. Futures contracts are valued at the most recent settlement price on the exchange on which the adviser believes that, over time, they are traded most extensively. Option contracts on domestic indices are valued at the average of the closing bid and ask quotations as of the close of trading on the Chicago Board Options Exchange (“CBOE”).
Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees. The Funds may also value securities and other investments at fair value in other circumstances such as when extraordinary events occur after the close of a foreign market but prior to the close of the New York Stock Exchange. This may include situations relating to a single issuer (such as a declaration of bankruptcy or a delisting of the issuer’s security from the primary market on which it has traded) as well as events affecting the securities markets in general (such as market disruptions or closings and significant fluctuations in U.S. and/or foreign markets). When fair valuing its securities or other investments, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities or other market activity and/or significant events that occur after the close of the foreign market and before the time the Fund’s net asset value (“NAV”) is calculated. Fair value pricing may require subjective determinations about the value of a security, and fair values used to determine a Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same securities. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities held by a Fund.
As of June 30, 2018 securities held by the Funds were fair valued as follows:
Fund | Equity | Percentage of | ||||||
Global Sustainable Equity Fund | $ | 33,012,557 | 38.8 | % |
1 | Certain foreign equity securities were fair valued pursuant to procedures approved by the Board of Trustees as events occurring after the close of the foreign market were believed to materially affect the value of those securities. |
As of June 30, 2018 purchased and written options held by the Funds were fair valued using the closing rotation values published by the CBOE as follows:
Fund | Purchased | Percentage of | Written | Percentage of | ||||||||||||
Gateway Fund | $ | 44,901,715 | 0.5 | % | $ | 70,752,870 | 0.8 | % | ||||||||
Gateway Equity Call Premium Fund | — | — | 523,745 | 0.9 | % |
| 74
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
b. Investment Transactions and Related Investment Income. Investment transactions are accounted for on a trade date plus one day basis for daily NAV calculation. However, for financial reporting purposes, investment transactions are reported on trade date. Dividend income is recorded on ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Interest income is increased by the accretion of discount and decreased by the amortization of premium, if applicable. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.
c. Foreign Currency Translation. The books and records of the Funds are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars on the respective dates of such transactions.
Net realized foreign exchange gains or losses arise from sales of foreign currency, changes in exchange rates between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investment securities, as of the end of the fiscal period, resulting from changes in exchange rates. Net realized foreign exchange gains or losses and the net change in unrealized foreign exchange gains or losses are disclosed in the Statements of Operations. For federal income tax purposes, net realized foreign exchange gains or losses are characterized as ordinary income, and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.
The values of investment securities are presented at the foreign exchange rates prevailing at the end of the period for financial reporting purposes. Net realized and unrealized gains or losses on investments reported in the Statements of Operations reflect gains or losses resulting from changes in exchange rates and fluctuations which arise due to changes in market prices of investment securities. For federal income tax purposes, a portion of the net realized gain or loss on investments arising from changes in exchange rates, which is reflected in the Statements of Operations, may be characterized as ordinary income and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.
75 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
The Funds may use foreign currency exchange contracts to facilitate transactions in foreign-denominated investments. Losses may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts’ terms.
d. Futures Contracts. Certain Funds may enter into futures contracts. Futures contracts are agreements between two parties to buy and sell a particular instrument or index for a specified price on a specified future date.
When a Fund enters into a futures contract, it is required to deposit with (or for the benefit of) its broker an amount of cash or short-term high-quality securities as “initial margin.” As the value of the contract changes, the value of the futures contract position increases or declines. Subsequent payments, known as “variation margin,” are made or received by a Fund, depending on the price fluctuations in the fair value of the contract and the value of cash or securities on deposit with the broker. The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statements of Assets and Liabilities as an asset (liability) and in the Statements of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses). Realized gain or loss on a futures position is equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, minus brokerage commissions. When a Fund enters into a futures contract certain risks may arise, such as illiquidity in the futures market, which may limit a Fund’s ability to close out a futures contract prior to settlement date, and unanticipated movements in the value of securities or interest rates.
Futures contracts are exchange-traded. Exchange-traded futures contracts are standardized and are settled through a clearing house with fulfillment supported by the credit of the exchange. Therefore, counterparty credit risks to the Funds are reduced; however, in the event that a counterparty enters into bankruptcy, a Fund’s claim against initial/variation margin on deposit with the counterparty may be subject to terms of a final settlement in bankruptcy court.
e. Option Contracts. Gateway Fund’s and Gateway Equity Call Premium Fund’s investment strategies make use of exchange-traded options. Exchange-traded options are standardized contracts and are settled through a clearing house with fulfillment supported by the credit of the exchange. Therefore, counterparty credit risks to a Fund are reduced.
When a Fund writes an index call option, an amount equal to the net premium received (the premium less commission) is recorded as a liability and is subsequently adjusted to the current value until the option expires or a Fund enters into a closing purchase transaction. When an index call option expires or a Fund enters into a closing purchase transaction, the difference between the net premium received and any amount paid at expiration or on effecting a closing purchase transaction, including commission, is
| 76
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
treated as a realized gain or, if the net premium received is less than the amount paid, as a realized loss. A Fund, as writer of an index call option, bears the risk of an unfavorable change in the market value of the index underlying the written option.
When a Fund purchases an index put option, it pays a premium and the index put option is subsequently marked-to-market to reflect current value until the option expires or a Fund enters into a closing sale transaction. Premiums paid for purchasing index put options which expire are treated as realized losses. When a Fund enters into a closing sale transaction, the difference between the premium paid and the proceeds of the closing sale transaction is treated as a realized gain or loss. The risk associated with purchasing index put options is limited to the premium paid.
f. Due from Brokers. Transactions and positions in certain futures contracts are maintained and cleared by registered U.S. broker/dealers pursuant to customer agreements between a Fund and the various broker/dealers. The due from brokers balance in the Statements of Assets and Liabilities for Global Green Bond Fund represents cash pledged as collateral for futures contracts. In certain circumstances the Fund’s use of cash held at brokers is restricted by regulation or broker mandated limits.
g. Federal and Foreign Income Taxes. The Trusts treat each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of June 30, 2018 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years, where applicable, remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.
A Fund may be subject to foreign withholding taxes on investment income and taxes on capital gains on investments that are accrued and paid based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign withholding taxes on dividend and interest income are reflected on the Statements of Operations as a reduction of investment income, net of amounts eligible to be reclaimed. Dividends and interest receivable on the Statements of Assets and Liabilities are net of foreign withholding taxes. Foreign withholding taxes where reclaims have been or will be filed are reflected on the Statements of Assets and Liabilities as tax reclaims receivable. Capital gains taxes paid are included in net
77 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
realized gain (loss) on investments in the Statements of Operations. Accrued but unpaid capital gains taxes are reflected as foreign taxes payable on the Statements of Assets and Liabilities, if applicable, and reduce unrealized gains on investments. In the event that realized gains on investments are subsequently offset by realized losses, taxes paid on realized gains may be returned to a Fund. Such amounts, if applicable, are reflected as foreign tax rebates receivable on the Statements of Assets and Liabilities and are recorded as a realized gain when received.
h. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as foreign currency gains and losses, premium amortization, non-deductible expenses, return of capital and capital gain distributions received, distribution re-designations and distributions in excess of income and/or capital gain. Permanent book and tax basis differences relating to shareholder distributions, net investment income and net realized gains will result in reclassifications to capital accounts reported on the Statements of Assets and Liabilities. Temporary differences between book and tax distributable earnings are primarily due to wash sales, premium amortization, futures contract mark-to-market, return of capital distributions received, deferred trustee’s fees and option contract mark-to-market. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.
The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the year ended December 31, 2017 was as follows:
2017 Distributions Paid From: | ||||||||||||||||
Fund | Ordinary | Long-Term | Total | |||||||||||||
Gateway Fund | $ | 96,146,895 | $ | — | $ | 96,146,895 | ||||||||||
Gateway Equity Call Premium Fund | 825,437 | — | 825,437 | |||||||||||||
Global Green Bond Fund | 503,903 | — | 503,903 | |||||||||||||
Global Sustainable Equity Fund | 270,696 | 488,562 | 759,258 |
Differences between these amounts and those reported in the Statements of Changes in Net Assets are primarily attributable to different book and tax treatment for short-term capital gains.
| 78
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
As of December 31, 2017, capital loss carryforwards and late-year ordinary and post-October capital loss deferrals were as follows:
Gateway | Gateway | Global | Global | |||||||||||||
Capital loss carryforward: | ||||||||||||||||
Short-term: | ||||||||||||||||
Expires: | ||||||||||||||||
December 31, 2018 | $ | (359,753,704 | ) | $ | — | $ | — | $ | — | |||||||
No expiration date | — | (4,993,709 | ) | (607,978 | ) | — | ||||||||||
Long-term: | ||||||||||||||||
No expiration date | — | (4,236,211 | ) | (971,466 | ) | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total capital loss carryforward | (359,753,704 | ) | (9,229,920 | ) | (1,579,444 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Late-year ordinary and post-October capital loss deferrals* | $ | — | $ | — | $ | — | $ | (1,001 | ) | |||||||
|
|
|
|
|
|
|
|
* | Under current tax law, capital losses, foreign currency losses, and losses on passive foreign investment companies and contingent payment debt instruments after October 31 or December 31, as applicable, may be deferred and treated as occurring on the first day of the following taxable year. |
Capital losses may be utilized to offset future capital gains until expiration. The Regulated Investment Company Modernization Act of 2010 (the “Act”) allows capital loss carryforwards to be carried forward indefinitely. Rules in effect previously limited the carryforward period to eight years. Capital loss carryforwards generated in taxable years beginning after the effective date of the Act must be fully used before capital loss carryforwards generated in years prior to the effective date of the Act; therefore, under certain circumstances, capital loss carryforwards available as of the report date may expire unused.
As of June 30, 2018, the cost of investments (including derivatives, if applicable) and unrealized appreciation (depreciation) on a federal tax basis were as follows:
Gateway Fund | Gateway | Global | Global | |||||||||||||
Federal tax cost | $ | 6,149,482,610 | $ | 45,818,005 | $ | 25,715,998 | $ | 74,184,347 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Gross tax appreciation | $ | 2,670,168,810 | $ | 16,955,916 | $ | 992,346 | $ | 13,516,837 | ||||||||
Gross tax depreciation | (228,798,895 | ) | (848,292 | ) | (515,380 | ) | (2,369,132 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net tax appreciation | $ | 2,441,369,915 | $ | 16,107,624 | $ | 476,966 | $ | 11,147,705 | ||||||||
|
|
|
|
|
|
|
|
79 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
Amounts exclude certain adjustments that will be made at the end of the Fund’s fiscal year for tax purposes. Such adjustments are primarily due to wash sales.
i. Repurchase Agreements. Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of June 30, 2018, each Fund, as applicable, had investments in repurchase agreements for which the value of the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.
j. Indemnifications. Under the Trusts’ organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
3. Fair Value Measurements. In accordance with accounting standards related to fair value measurements and disclosures, the Funds have categorized the inputs utilized in determining the value of each Fund’s assets or liabilities. These inputs are summarized in the three broad levels listed below:
• | Level 1 – quoted prices in active markets for identical assets or liabilities; |
• | Level 2 – prices determined using other significant inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk, etc.); and |
• | Level 3 – prices determined using significant unobservable inputs when quoted prices or observable inputs are unavailable such as when there is little or no market activity for an asset or liability (unobservable inputs reflect each Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available). |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
| 80
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
The following is a summary of the inputs used to value the Funds’ investments as of June 30, 2018, at value:
Gateway Fund
Asset Valuation Inputs
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks(a) | $ | 8,250,539,595 | $ | — | $ | — | $ | 8,250,539,595 | ||||||||
Purchased Options(a) | — | 44,901,715 | — | 44,901,715 | ||||||||||||
Short-Term Investments | — | 227,046,370 | — | 227,046,370 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 8,250,539,595 | $ | 271,948,085 | $ | — | $ | 8,522,487,680 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Valuation Inputs
| ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Written Options(a) | $ | — | $ | (70,752,870 | ) | $ | — | $ | (70,752,870 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments. |
For the six months ended June 30, 2018, there were no transfers among Levels 1, 2 and 3.
Gateway Equity Call Premium Fund
Asset Valuation Inputs
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks(a) | $ | 60,354,831 | $ | — | $ | — | $ | 60,354,831 | ||||||||
Short-Term Investments | — | 1,066,922 | — | 1,066,922 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 60,354,831 | $ | 1,066,922 | $ | — | $ | 61,421,753 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Valuation Inputs
| ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Written Options(a) | $ | — | $ | (523,745 | ) | $ | — | $ | (523,745 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments. |
For the six months ended June 30, 2018, there were no transfers among Levels 1, 2 and 3.
81 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
Global Green Bond Fund
Asset Valuation Inputs
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Bonds and Notes(a) | $ | — | $ | 25,989,894 | $ | — | $ | 25,989,894 | ||||||||
Futures Contracts (unrealized appreciation) | 213,506 | — | — | 213,506 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 213,506 | $ | 25,989,894 | $ | — | $ | 26,203,400 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Valuation Inputs
|
| |||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Futures Contracts (unrealized depreciation) | $ | (10,436 | ) | $ | — | $ | — | $ | (10,436 | ) | ||||||
|
|
|
|
|
|
|
|
(a) | Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments. |
For the six months ended June 30, 2018, there were no transfers among Levels 1, 2 and 3.
Global Sustainable Equity Fund
Asset Valuation Inputs
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
Belgium | $ | — | $ | 2,552,143 | $ | — | $ | 2,552,143 | ||||||||
China | — | 943,496 | — | 943,496 | ||||||||||||
Denmark | — | 6,716,313 | — | 6,716,313 | ||||||||||||
France | — | 4,613,011 | — | 4,613,011 | ||||||||||||
Germany | — | 4,083,943 | — | 4,083,943 | ||||||||||||
Hong Kong | — | 1,870,662 | — | 1,870,662 | ||||||||||||
Japan | — | 4,551,971 | — | 4,551,971 | ||||||||||||
Netherlands | — | 2,815,720 | — | 2,815,720 | ||||||||||||
Singapore | — | 1,064,320 | — | 1,064,320 | ||||||||||||
Switzerland | — | 604,996 | — | 604,996 | ||||||||||||
United Kingdom | 2,157,363 | 3,195,982 | — | 5,353,345 | ||||||||||||
All Other Common Stocks(a) | 46,033,360 | — | — | 46,033,360 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Common Stocks | 48,190,723 | 33,012,557 | — | 81,203,280 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investments | — | 4,128,772 | — | 4,128,772 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 48,190,723 | $ | 37,141,329 | $ | — | $ | 85,332,052 | ||||||||
|
|
|
|
|
|
|
|
(a) | Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments. |
| 82
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
A common stock valued at $953,564 was transferred from Level 1 to Level 2 during the period ended June 30, 2018. At December 31, 2017 this security was valued at the market price in the foreign market in accordance with the Fund’s valuation policies. At June 30, 2018, this security was fair valued pursuant to procedures approved by the Board of Trustees as events occurring after the close of the foreign market were believed to materially affect the value of the security.
All transfers are recognized as of the beginning of the reporting period.
4. Derivatives. Derivative instruments are defined as financial instruments whose value and performance are based on the value and performance of an underlying asset, reference rate or index. Derivative instruments that the Funds used during the period include futures contracts, written index call options and purchased index put options.
Gateway Fund and Gateway Equity Call Premium Fund seek to capture the majority of the returns associated with equity market investments, while exposing investors to less risk than other equity investments. To meet this investment goal, the Funds invest in a broadly diversified portfolio of common stocks, while also writing index call options. Writing index call options can reduce the Fund’s volatility, provide a steady cash flow and be an important source of the Fund’s return, although it also may reduce the Funds’ ability to profit from increases in the value of its equity portfolio. The Gateway Fund also buys index put options, which can protect the Fund from a significant market decline that may occur over a short period of time. The value of an index put option generally increases as the prices of stocks constituting the index decrease and decreases as those stocks increase in price. The combination of the diversified stock portfolio, the steady cash flow from writing of index call options and the downside protection from purchased index put options is intended to provide the Funds with the majority of the returns associated with equity market investments while exposing investors to less risk than other equity investments. During the six months ended June 30, 2018, written index call options and purchased index put options were used in accordance with this objective.
Global Green Bond Fund seeks to provide total return, through a combination of capital appreciation and current income, by investing in green bonds. The Fund pursues its objective by primarily investing in fixed-income securities. In connection with its principal investment strategies, the Fund may also invest in futures, forwards and foreign currency transactions for hedging and investment purposes and to manage duration. During the six months ended June 30, 2018, the Fund used futures contracts to gain yield curve exposure, manage duration and for currency hedging purposes in accordance with its objective.
83 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
The following is a summary of derivative instruments for Gateway Fund as of June 30, 2018, as reflected within the Statements of Assets and Liabilities:
Assets | Investments | |||
Exchange-traded asset derivatives | ||||
Equity contracts | $ | 44,901,715 | ||
Liabilities | Options written | |||
Exchange-traded liability derivatives | ||||
Equity contracts | $ | (70,752,870 | ) |
1 | Represents purchased options, at value. |
Transactions in derivative instruments for Gateway Fund during the six months ended June 30, 2018, as reflected within the Statements of Operations were as follows:
Net Realized Gain (Loss) on: | Investments2 | Options written | ||||||
Equity contracts | $ | (24,487,746 | ) | $ | (310,979,884 | ) | ||
Net Change in Unrealized | Investments2 | Options written | ||||||
Equity contracts | $ | 10,674,770 | $ | 101,027,091 |
2 | Represents realized loss and change in unrealized appreciation (depreciation), respectively, for purchased options during the period. |
The following is a summary of derivative instruments for Gateway Equity Call Premium Fund as of June 30, 2018, as reflected within the Statements of Assets and Liabilities:
Liabilities | Options written | |||
Exchange-traded liability derivatives | ||||
Equity contracts | $ | (523,745 | ) |
Transactions in derivative instruments for Gateway Equity Call Premium Fund during the six months ended June 30, 2018, as reflected within the Statements of Operations were as follows:
Net Realized Gain (Loss) on: | Options written | |||
Equity contracts | $ | (2,783,575 | ) | |
Net Change in Unrealized | Options written | |||
Equity contracts | $ | 804,454 |
| 84
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
The following is a summary of derivative instruments for Global Green Bond Fund as of June 30, 2018, as reflected within the Statements of Assets and Liabilities:
Assets | Unrealized | |||
Exchange-traded asset derivatives | ||||
Interest rate contracts | $ | 15,258 | ||
Foreign exchange contracts | 198,248 | |||
|
| |||
Total exchange-traded asset derivatives | $ | 213,506 | ||
|
| |||
Liabilities | Unrealized | |||
Exchange-traded liability derivatives |
| |||
Interest rate contracts | $ | (10,436 | ) |
Transactions in derivative instruments for Global Green Bond Fund during the six months ended June 30, 2018, as reflected within the Statements of Operations were as follows:
Net Realized Gain (Loss) on: | Futures contracts | |||
Interest rate contracts | $ | 2,665 | ||
Foreign exchange contracts | 228,835 | |||
|
| |||
Total | $ | 231,500 | ||
|
| |||
Net Change in Unrealized Appreciation | Futures contracts | |||
Interest rate contracts | $ | 10,486 | ||
Foreign exchange contracts | 429,954 | |||
|
| |||
Total | $ | 440,440 | ||
|
|
As the Funds value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting under authoritative guidance for derivative instruments. The Funds’ investments in derivatives may represent an economic hedge; however, they are considered to be non-hedge transactions for the purpose of these disclosures.
85 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
The volume of option contract activity as a percentage of investments in common stocks, for Gateway Fund based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended June 30, 2018:
Gateway Fund | Call Options | Put Options | ||||||
Average Notional Amount Outstanding | 99.03 | % | 93.51 | % | ||||
Highest Notional Amount Outstanding | 99.16 | % | 99.16 | % | ||||
Lowest Notional Amount Outstanding | 98.89 | % | 70.58 | % | ||||
Notional Amount Outstanding as of June 30, 2018 | 99.04 | % | 99.04 | % |
The volume of option contract activity as a percentage of investments in common stocks for Gateway Equity Call Premium Fund, based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended June 30, 2018:
Gateway Equity Call Premium Fund | Call Options Written* | |||
Average Notional Amount Outstanding | 98.83 | % | ||
Highest Notional Amount Outstanding | 99.23 | % | ||
Lowest Notional Amount Outstanding | 98.57 | % | ||
Notional Amount Outstanding as of June 30, 2018 | 98.64 | % |
* | Notional amounts outstanding are determined by multiplying option contracts by the contract multiplier by the price of the option’s underlying index, the S&P 500® Index. |
The volume of futures contract activity as a percentage of net assets, for Global Green Bond Fund based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended June 30, 2018:
Global Green Bond Fund | Futures | |
Average Notional Amount Outstanding | 74.16% | |
Highest Notional Amount Outstanding | 89.67% | |
Lowest Notional Amount Outstanding | 68.71% | |
Notional Amount Outstanding as of June 30, 2018 | 89.67% |
Notional amounts outstanding at the end of the prior period are included in the averages above.
Counterparty risk is managed based on policies and procedures established by the Fund’s adviser. Such policies and procedures may include, but are not limited to, minimum counterparty credit rating requirements, monitoring of counterparty credit default swap spreads and posting of collateral. With exchange-traded derivatives, there is minimal counterparty credit risk to the Fund because the exchange’s clearing house, as counterparty to these instruments, stands between the buyer and the seller of the contract. Credit risk still exists in exchange-traded derivatives with respect to
| 86
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
initial and variation margin that is held in a broker’s customer accounts. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro rata basis across all of the broker’s customers, potentially resulting in losses to the Fund. The following table shows the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the Fund would incur if parties to the relevant financial instruments failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the Fund, as of June 30, 2018:
Fund | Maximum Amount of Loss – Gross | Maximum Amount of Loss – Net | ||||||
Global Green Bond Fund | $ | 385,670 | $ | 385,670 |
5. Purchases and Sales of Securities. For the six months ended June 30, 2018, purchases and sales of securities (excluding short-term investments and U.S. Government/Agency securities and option contracts and including paydowns) were as follows:
Fund | Purchases | Sales | ||||||
Gateway Fund | $ | 291,902,704 | $ | 567,892,883 | ||||
Gateway Equity Call Premium Fund | 14,648,418 | 35,745,804 | ||||||
Global Green Bond Fund | 9,557,739 | 7,291,911 | ||||||
Global Sustainable Equity Fund | 22,706,716 | 6,670,671 |
6. Management Fees and Other Transactions with Affiliates.
a. Management Fees. Gateway Investment Advisers, LLC (“Gateway Advisers”) serves as investment adviser to the Gateway Fund and Gateway Equity Call Premium Fund. Gateway Advisers is a subsidiary of Natixis, which is part of Natixis Investment Managers, an international asset management group based in Paris, France. Under the terms of the management agreements, each Fund pays a management fee at the following annual rates, calculated daily and payable monthly, based on each Fund’s average daily net assets:
Percentage of Average Daily Net Assets | ||||||||||||
Fund | First $5 billion | Next $5 billion | Over $10 billion | |||||||||
Gateway Fund | 0.65 | % | 0.60 | % | 0.58 | % | ||||||
Gateway Equity Call Premium Fund | 0.65 | % | 0.65 | % | 0.65 | % |
87 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
Ostrum Asset Management U.S., LLC (“Ostrum US”) (formerly, Natixis Asset Management U.S., LLC) serves as investment adviser to the Global Green Bond Fund and Global Sustainable Equity Fund. Under the terms of the management agreements, each Fund pays a management fee at the following annual rates, calculated daily and payable monthly, based on each Fund’s average daily net assets:
Fund | Percentage of Average Daily Net Assets | |||
Global Green Bond Fund | 0.55 | % | ||
Global Sustainable Equity Fund | 0.80 | % |
Gateway Advisers and Ostrum US have given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until April 30, 2019, may be terminated before then only with the consent of the Funds’ Board of Trustees, and are reevaluated on an annual basis. Management fees payable, as reflected on the Statements of Assets and Liabilities, is net of waivers and/or expense reimbursements, if any, pursuant to these undertakings. Waivers/reimbursements that exceed management fees payable are reflected on the Statements of Assets and Liabilities as receivable from investment adviser.
For the six months ended June 30, 2018, the expense limits as a percentage of average daily net assets under the expense limitation agreement were as follows:
Expense Limit as a Percentage of Average Daily Net Assets | ||||||||||||||||
Fund | Class A | Class C | Class N | Class Y | ||||||||||||
Gateway Fund | 0.94 | % | 1.70 | % | 0.65 | % | 0.70 | % | ||||||||
Gateway Equity Call Premium Fund | 1.20 | % | 1.95 | % | 0.90 | % | 0.95 | % | ||||||||
Global Green Bond Fund | 0.95 | % | — | 0.65 | % | 0.70 | % | |||||||||
Global Sustainable Equity Fund | 1.30 | % | 2.05 | % | 1.00 | % | 1.05 | % |
Gateway Advisers and Ostrum US shall be permitted to recover expenses they have borne under the expense limitation agreement (whether through waiver of its management fee or otherwise) on a class by class basis in later periods to the extent the annual operating expenses of a class fall below a class’ expense limits, provided, however, that a class is not obligated to pay such waived/reimbursed fees or expenses more than one year after the end of the fiscal year in which the fees or expenses were waived/reimbursed.
| 88
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
For the six months ended June 30, 2018, the management fees and waiver of management fees for each Fund were as follows:
Fund | Gross Management Fees | Contractual Waivers of Management Fees1 | Net Management Fees | Percentage of Average Daily Net Assets | ||||||||||||||||
Gross | Net | |||||||||||||||||||
Gateway Fund | $ | 26,414,564 | $ | 2,784,662 | $ | 23,629,902 | 0.63 | % | 0.56 | % | ||||||||||
Gateway Equity Call Premium Fund | 220,135 | 85,096 | 135,039 | 0.65 | % | 0.40 | % | |||||||||||||
Global Green Bond Fund | 73,643 | 73,643 | — | 0.55 | % | — | % | |||||||||||||
Global Sustainable Equity Fund | 318,109 | 68,850 | 249,259 | 0.80 | % | 0.63 | % |
1 | Management fee waiver is subject to possible recovery until December 31, 2019. |
For the six months ended June 30, 2018, class-specific expenses have been reimbursed as follows:
Reimbursement | ||||||||||||||||||||
Fund | Class A | Class C | Class N | Class Y | Total | |||||||||||||||
Gateway Fund | $ | 155,161 | $ | — | $ | — | $ | — | $ | 155,161 |
In addition, Ostrum US reimbursed non-class-specific expenses of Global Green Bond Fund in the amount of $14,528 for the period ended June 30, 2018.
No expenses were recovered for any of the Funds during the six months ended June 30, 2018 under the terms of the expense limitation agreements.
b. Service and Distribution Fees. Natixis Distribution, L.P. (“Natixis Distribution”), which is a wholly-owned subsidiary of Natixis, has entered into a distribution agreement with the Trusts. Pursuant to this agreement, Natixis Distribution serves as principal underwriter of the Funds of the Trusts.
Pursuant to Rule 12b-1 under the 1940 Act, the Trusts have adopted a Service Plan relating to each Fund’s Class A shares (the “Class A Plans”) and a Distribution and Service Plan relating to each Fund’s Class C shares (the “Class C Plans”).
Under the Class A Plans, each Funds’ pays Natixis Distribution a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Funds’ Class A shares, as reimbursement for expenses incurred by Natixis Distribution in providing personal services to investors in Class A shares and/or the maintenance of shareholder accounts.
89 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
Under the Class C Plans, if applicable, each Fund pays Natixis Distribution a monthly service fee at an annual rate not to exceed 0.25% of the average daily net assets attributable to the Funds’ Class C shares, as compensation for services provided by Natixis Distribution in providing personal services to investors in Class C shares and/or the maintenance of shareholder accounts.
Also under the Class C Plans, if applicable, each Fund pays Natixis Distribution a monthly distribution fee at an annual rate of 0.75% of the average daily net assets attributable to the Funds’ Class C shares, as compensation for services provided by Natixis Distribution in connection with the marketing or sale of Class C shares.
For the six months ended June 30, 2018, the service and distribution fees for each Fund were as follows:
Service Fees | Distribution Fees | |||||||||||
Fund | Class A | Class C | Class C | |||||||||
Gateway Fund | $ | 1,923,568 | $ | 402,249 | $ | 1,206,747 | ||||||
Gateway Equity Call Premium Fund | 6,520 | 1,017 | 3,051 | |||||||||
Global Green Bond Fund | 913 | — | — | |||||||||
Global Sustainable Equity Fund | 5,700 | 2,129 | 6,388 |
c. Administrative Fees. Natixis Advisors, L.P. (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank and Trust Company (“State Street Bank”) to serve as sub-administrator. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts, Natixis ETF Trust and Natixis Advisors, the Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0350% of the next $30 billion and 0.0325% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust of $10 million, which is reevaluated on an annual basis.
For the six months ended June 30, 2018, the administrative fees for each Fund were as follows:
Fund | Administrative | |||
Gateway Fund | $ | 1,861,942 | ||
Gateway Equity Call Premium Fund | 15,027 | |||
Global Green Bond Fund | 5,942 | |||
Global Sustainable Equity Fund | 17,648 |
Effective July 1, 2018, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0575% of the first $15 billion of the average daily net
| 90
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
assets of the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, 0.0500% of the next $15 billion, 0.0400% of the next $30 billion, 0.0275% of the next $30 billion and 0.0225% of such assets in excess of $90 billion, subject to an annual aggregate minimum fee for the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust of $10 million, which is reevaluated on an annual basis.
d. Sub-Transfer Agent Fees. Natixis Distribution has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Funds and has agreed to compensate the intermediaries for providing those services. Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. These services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly at the Funds’ transfer agent. Accordingly, the Funds have agreed to reimburse Natixis Distribution for all or a portion of the servicing fees paid to these intermediaries. The reimbursement amounts (sub-transfer agent fees) paid to Natixis Distribution are subject to a current per-account equivalent fee limit approved by the Funds’ Board of Trustees, which is based on fees for similar services paid to the Funds’ transfer agent and other service providers. Class N shares do not bear such expenses.
For the six months ended June 30, 2018, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:
Fund | Sub-Transfer Agent Fees | |||
Gateway Fund | $ | 2,517,560 | ||
Gateway Equity Call Premium Fund | 15,160 | |||
Global Green Bond Fund | 624 | |||
Global Sustainable Equity Fund | 24,534 |
As of June 30, 2018, the Funds owe Natixis Distribution the following reimbursements for sub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as payable to distributor):
Fund | Reimbursements of | |||
Gateway Fund | $ | 61,073 | ||
Gateway Equity Call Premium Fund | 325 | |||
Global Green Bond Fund | 14 | |||
Global Sustainable Equity Fund | 544 |
91 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
Sub-transfer agent fees attributable to Class A, Class C and Class Y are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes.
e. Commissions. Commissions (including CDSCs) on Fund shares retained by Natixis Distribution during the six months ended June 30, 2018, were as follows:
Fund | Commissions | |||
Gateway Fund | $ | 52,432 | ||
Global Sustainable Equity Fund | 3,038 |
f. Trustees Fees and Expenses. The Trusts do not pay any compensation directly to its officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distribution, Natixis or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $340,000. The Chairperson does not receive any meeting attendance fees for Board of Trustees meetings or committee meetings that he attends. Each Independent Trustee (other than the Chairperson) receives, in the aggregate, a retainer fee at the annual rate of $170,000. Each Independent Trustee also receives a meeting attendance fee of $10,000 for each meeting of the Board of Trustees that he or she attends in person and $5,000 for each meeting of the Board of Trustees that he or she attends telephonically. In addition, the chairperson of the Contract Review Committee and the chairperson of the Audit Committee each receive an additional retainer fee at the annual rate of $20,000. The chairperson of the Governance Committee receives an additional retainer fee at the annual rate of $12,000. Each Contract Review Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. Each Audit Committee member is compensated $6,000 for each Committee meeting that he or she attends in person and $3,000 for each meeting that he or she attends telephonically. These fees are allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust based on a formula that takes into account, among other factors, the relative net assets of each fund. Trustees are reimbursed for travel expenses in connection with attendance at meetings.
A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Fund until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain funds of the Natixis Funds Trusts, Loomis Sayles Funds Trusts, and Natixis ETF Trust as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, and are normally reflected as Trustees’ fees and expenses in the Statements of Operations. The portions of the accrued obligations allocated to the Fund under the Plan are reflected as Deferred Trustees’ fees in the Statements of Assets and Liabilities.
| 92
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
g. Affiliated Ownership. As of June 30, 2018, the percentage of each Fund’s net assets owned by affiliates is as follows:
Gateway Equity Call Premium Fund | Percentage of Net Assets | |||
Natixis Advisors | less than 0.01 | % |
Global Green Bond Fund | Percentage of Net Assets | |||
Natixis Sustainable Future 2015 Fund | 4.63 | % | ||
Natixis Sustainable Future 2020 Fund | 4.52 | % | ||
Natixis Sustainable Future 2025 Fund | 2.84 | % | ||
Natixis Sustainable Future 2030 Fund | 1.69 | % | ||
Natixis Sustainable Future 2035 Fund | 1.16 | % | ||
Natixis Sustainable Future 2040 Fund | 0.71 | % | ||
Natixis Sustainable Future 2045 Fund | 0.40 | % | ||
Natixis Sustainable Future 2050 Fund | 0.33 | % | ||
Natixis Sustainable Future 2055 Fund | 0.30 | % | ||
Natixis Sustainable Future 2060 Fund | 0.30 | % | ||
Natixis US and affiliates | 78.57 | % | ||
|
| |||
95.45 | % |
Global Sustainable Equity Fund | Percentage of Net Assets | |||
Natixis Advisors | less than 0.01 | % | ||
Natixis US and affiliates | 37.67% |
Investment activities of affiliated shareholders could have material impacts on the Fund.
h. Reimbursement of Transfer Agent Fees and Expenses. Natixis Advisors has given a binding contractual undertaking to Gateway Fund, Gateway Equity Call Premium Fund and Global Sustainable Equity Fund to reimburse any and all transfer agency expenses for the Funds’ Class N shares. This undertaking is in effect through April 30, 2019 and is not subject to recovery under the expense limitation agreement described above.
For the six months ended June 30, 2018, Natixis Advisors reimbursed the Funds for transfer agency expenses as follows:
Fund | Reimbursement of | |||
Class N | ||||
Gateway Fund | $ | 13,221 | ||
Gateway Equity Call Premium Fund | 73 | |||
Global Sustainable Equity Fund | 88 |
93 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
7. Class-Specific Transfer Agent Fees and Expenses. Transfer agent fees and expenses attributable to Class A, Class C and Class Y are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes. Transfer agent fees and expenses attributable to Class N are allocated to Class N.
For the six months ended June 30, 2018, the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):
Transfer Agent Fees and Expenses | ||||||||||||||||
Fund | Class A | Class C | Class N | Class Y | ||||||||||||
Gateway Fund | $ | 543,795 | $ | 113,640 | $ | 13,363 | $ | 2,244,876 | ||||||||
Gateway Equity Call Premium Fund | 1,691 | 235 | 73 | 18,353 | ||||||||||||
Global Green Bond Fund | 1,842 | — | 166 | 541 | ||||||||||||
Global Sustainable Equity Fund | 1,513 | 572 | 88 | 26,292 |
8. Line of Credit. Effective April 12, 2018, each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trust, entered into a $400,000,000 committed unsecured line of credit provided by State Street Bank and Trust. Any one Fund may borrow up to $350,000,000 under the line of credit agreement (as long as all borrowings by all Funds in the aggregate do not exceed the $400,000,000 limit at any time), subject to each Fund’s investment restrictions and its contractual obligations under the line of credit. Interest is charged to the Funds based upon the terms set forth in the agreement. In addition, a commitment fee of 0.15% per annum, payable at the end of each calendar quarter, is accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit. The Funds paid an arrangement fee, an upfront fee, and other fees in connection with the new line of credit agreement, which are being amortized over a period of 364 days and are reflected as miscellaneous expenses on the Statements of Operations. The unamortized balance is reflected as prepaid expenses on the Statements of Assets and Liabilities.
For the six months ended June 30, 2018, none of the Funds had borrowings under these agreements.
Prior to April 12, 2018, each Fund, together with certain other funds of Natixis Funds Trusts and Loomis Sayles Funds Trusts, entered into a 364-day, $400,000,000 syndicated, committed, unsecured line of credit with Citibank, N.A. to be used for temporary or emergency purposes only. Any one Fund was able borrow up to the full $400,000,000 under the line of credit (as long as all borrowings by all Funds in the aggregate did not exceed the $400,000,000 limit at any time), subject to each Fund’s investment restrictions and its contractual obligations under the line of credit. Interest was charged to the Funds at a rate equal to the greater of the eurodollar or the federal
| 94
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
funds rate plus 1.00%. In addition, a commitment fee of 0.15% per annum, payable on the last business day of each month, was accrued and apportioned among the participating funds based on their average daily unused portion of the line of credit.
9. Payable to Custodian Bank. The Funds’ custodian bank, State Street Bank, provides overdraft protection to the Funds in the event of a cash shortfall. Cash overdrafts bear interest at a rate per annum equal to the Federal Funds rate plus 2.00%. At June 30, 2018, the Fund had payables to the custodian bank in connection with these overdrafts as follows:
Payable to Custodian Bank | ||||
Global Green Bond Fund | $ | 383,700 |
10. Broker Commission Recapture. The Gateway Fund had entered into agreements with certain brokers whereby the brokers will rebate a portion of brokerage commissions. All amounts rebated by the brokers are returned to the Fund under such agreements and are included in realized gains in the Statements of Operations.
For the six months ended June 30, 2018, the Fund had no amounts rebated under these agreements.
Effective March 9, 2018, the brokerage commission recapture program was terminated.
11. Concentration of Risk. The Global Sustainable Equity Fund and Global Green Bond Fund’s investments in foreign securities are subject to foreign currency fluctuations, higher volatility than U.S. securities, varying degrees of regulation and limited liquidity. Greater political, economic, credit and information risks are also associated with foreign securities.
12. Interest Expense. Global Green Bond Fund incurs interest expense on net cash and foreign currency debit balances, if any, for accounts held at brokers. Interest expense incurred for the six months ended June 30, 2018 is reflected on the Statement of Operations.
13. Concentration of Ownership. From time to time, a Fund may have a concentration of one or more accounts constituting a significant percentage of shares outstanding. Investment activities by holders of such accounts could have material impacts on the Funds. As of June 30, 2018, based on management’s evaluation of the shareholder account base, the Funds had accounts representing controlling ownership of more than 5% of the Funds’ total outstanding shares. The number of such accounts, based on
95 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
accounts that represent more than 5% of an individual class of shares, and the aggregate percentage of net assets represented by such holdings were as follows:
Fund | Number of 5% | Percentage of | Percentage of | Total | ||||||||||||
Gateway Equity Call Premium Fund | 2 | 73.57 | % | — | 73.57 | % | ||||||||||
Global Green Bond Fund Fund | — | — | 95.45 | % | 95.45 | % | ||||||||||
Global Sustainable Equity Fund | — | — | 37.67 | % | 37.67 | % |
Omnibus shareholder accounts for which Natixis Advisors understands that the intermediary has discretion over the underlying shareholder accounts or investment models where a shareholder account may be invested for a non-discretionary customer are included in the table above. For other omnibus accounts, the Funds do not have information on the individual shareholder accounts underlying the omnibus accounts; therefore, there could be other 5% shareholders in addition to those disclosed in the table above.
| 96
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
14. Capital Shares. Each Fund may issue an unlimited number of shares of beneficial interest, without par value. Transactions in capital shares were as follows:
| Six Months Ended June 30, 2018 | | Year Ended December 31, 2017(a) | |||||||||||||
Gateway Fund | Shares | Amount | Shares | Amount | ||||||||||||
Class A |
| |||||||||||||||
Issued from the sale of shares | 4,375,827 | $ | 145,313,044 | 11,877,615 | $ | 380,305,952 | ||||||||||
Issued in connection with the reinvestment of distributions | 234,731 | 7,724,129 | 501,051 | 16,214,649 | ||||||||||||
Redeemed | (10,640,403 | ) | (353,204,402 | ) | (19,432,242 | ) | (625,661,265 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | (6,029,845 | ) | $ | (200,167,229 | ) | (7,053,576 | ) | $ | (229,140,664 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued from the sale of shares | 498,836 | $ | 16,486,156 | 1,324,365 | $ | 42,461,524 | ||||||||||
Issued in connection with the reinvestment of distributions | 15,741 | 514,442 | 30,037 | 965,515 | ||||||||||||
Redeemed | (1,262,503 | ) | (41,713,356 | ) | (3,175,268 | ) | (101,409,398 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | (747,926 | ) | $ | (24,712,758 | ) | (1,820,866 | ) | $ | (57,982,359 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class N |
| |||||||||||||||
Issued from the sale of shares | 4,055,304 | $ | 135,173,904 | 3,986,733 | $ | 131,101,034 | ||||||||||
Issued in connection with the reinvestment of distributions | 23,207 | 763,518 | 1,728 | 57,339 | ||||||||||||
Redeemed | (1,975,235 | ) | (66,190,623 | ) | (215,239 | ) | (7,124,210 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 2,103,276 | $ | 69,746,799 | 3,773,222 | �� | $ | 124,034,163 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class Y |
| |||||||||||||||
Issued from the sale of shares | 32,171,371 | $ | 1,069,676,053 | 62,338,029 | $ | 2,010,865,299 | ||||||||||
Issued in connection with the reinvestment of distributions | 1,054,814 | 34,708,499 | 1,918,062 | 62,178,172 | ||||||||||||
Redeemed | (28,274,502 | ) | (938,099,110 | ) | (53,219,787 | ) | (1,711,701,753 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 4,951,683 | $ | 166,285,442 | 11,036,304 | $ | 361,341,718 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (decrease) from capital share transactions | 277,188 | $ | 11,152,254 | 5,935,084 | $ | 198,252,858 | ||||||||||
|
|
|
|
|
|
|
|
(a) | From commencement of operations on May 1, 2017 through December 31, 2017 for Class N shares. |
97 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
14. Capital Shares (continued).
| Six Months Ended June 30, 2018 | | Year Ended December 31, 2017(a) | |||||||||||||
Gateway Equity Call Premium Fund | Shares | Amount | Shares | Amount | ||||||||||||
Class A |
| |||||||||||||||
Issued from the sale of shares | 62,036 | $ | 739,762 | 535,418 | $ | 6,158,261 | ||||||||||
Issued in connection with the reinvestment of distributions | 1,228 | 14,590 | 5,824 | 67,504 | ||||||||||||
Redeemed | (306,560 | ) | (3,612,887 | ) | (552,465 | ) | (6,565,662 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | (243,296 | ) | $ | (2,858,535 | ) | (11,223 | ) | $ | (339,897 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued from the sale of shares | 22,555 | $ | 274,230 | 10,471 | $ | 117,776 | ||||||||||
Issued in connection with the reinvestment of distributions | 33 | 385 | 47 | 533 | ||||||||||||
Redeemed | (4,261 | ) | (50,853 | ) | (5,052 | ) | (57,315 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 18,327 | $ | 223,762 | 5,466 | $ | 60,994 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class N |
| |||||||||||||||
Issued from the sale of shares | — | $ | — | 88 | $ | 1,001 | ||||||||||
Issued in connection with the reinvestment of distributions | — | (b) | 6 | 1 | 9 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | — | $ | 6 | 89 | $ | 1,010 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class Y |
| |||||||||||||||
Issued from the sale of shares | 1,463,687 | $ | 17,627,686 | 1,249,514 | $ | 14,264,592 | ||||||||||
Issued in connection with the reinvestment of distributions | 8,113 | 96,073 | 33,652 | 391,063 | ||||||||||||
Redeemed | (2,903,262 | ) | (34,831,700 | ) | (1,058,760 | ) | (12,154,004 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | (1,431,462 | ) | $ | (17,107,941 | ) | 224,406 | $ | 2,501,651 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (decrease) from capital share transactions | (1,656,431 | ) | $ | (19,742,708 | ) | 218,738 | $ | 2,223,758 | ||||||||
|
|
|
|
|
|
|
|
(a) | From commencement of operations on May 1, 2017 through December 31, 2017 for Class N shares. |
(b) | Amount rounds to less than one share. |
| 98
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
14. Capital Shares (continued).
| Six Months Ended June 30, 2018 | | Period Ended December 31, 2017(a) | |||||||||||||
Global Green Bond Fund | Shares | Amount | Shares | Amount | ||||||||||||
Class A |
| |||||||||||||||
Issued from the sale of shares | 85,968 | $ | 850,521 | 14,126 | $ | 142,758 | ||||||||||
Issued in connection with the reinvestment of distributions | 949 | 9,307 | 194 | 1,938 | ||||||||||||
Redeemed | (8,551 | ) | (84,155 | ) | (320 | ) | (3,259 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 78,366 | $ | 775,673 | 14,000 | $ | 141,437 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class N |
| |||||||||||||||
Issued from the sale of shares | 50,445 | $ | 502,570 | 2,537,209 | $ | 25,376,096 | ||||||||||
Issued in connection with the reinvestment of distributions | 33,777 | 332,032 | 50,115 | 501,290 | ||||||||||||
Redeemed | (7,547 | ) | (74,346 | ) | (515 | ) | (5,155 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 76,675 | $ | 760,256 | 2,586,809 | $ | 25,872,231 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class Y |
| |||||||||||||||
Issued from the sale of shares | 29,930 | $ | 295,428 | 4,283 | $ | 43,491 | ||||||||||
Issued in connection with the reinvestment of distributions | 295 | 2,894 | 68 | 675 | ||||||||||||
Redeemed | (708 | ) | (6,953 | ) | (24 | ) | (235 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 29,517 | $ | 291,369 | 4,327 | $ | 43,931 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (decrease) from capital share transactions | 184,558 | $ | 1,827,298 | 2,605,136 | $ | 26,057,599 | ||||||||||
|
|
|
|
|
|
|
|
(a) | From commencement of operations on February 28, 2017 through December 31, 2017. |
99 |
Notes to Financial Statements (continued)
June 30, 2018 (Unaudited)
14. Capital Shares (continued).
| Six Months Ended June 30, 2018 | | Year Ended December 31, 2017(a) | |||||||||||||
Global Sustainable Equity Fund | Shares | Amount | Shares | Amount | ||||||||||||
Class A |
| |||||||||||||||
Issued from the sale of shares | 195,824 | $ | 2,561,827 | 267,864 | $ | 3,326,306 | ||||||||||
Issued in connection with the reinvestment of distributions | 2,040 | 26,404 | 2,443 | 31,197 | ||||||||||||
Redeemed | (10,533 | ) | (140,183 | ) | (22,091 | ) | (265,777 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 187,331 | $ | 2,448,048 | 248,216 | $ | 3,091,726 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued from the sale of shares | 76,592 | $ | 989,947 | 86,492 | $ | 1,050,944 | ||||||||||
Issued in connection with the reinvestment of distributions | 335 | 4,277 | 372 | 4,700 | ||||||||||||
Redeemed | (1,419 | ) | (18,362 | ) | (6 | ) | (80 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 75,508 | $ | 975,862 | 86,858 | $ | 1,055,564 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class N |
| |||||||||||||||
Issued from the sale of shares | — | $ | — | 89 | $ | 1,001 | ||||||||||
Issued in connection with the reinvestment of distributions | — | (b) | 7 | 1 | 13 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | — | $ | 7 | 90 | $ | 1,014 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class Y |
| |||||||||||||||
Issued from the sale of shares | 1,543,096 | $ | 20,532,955 | 2,401,416 | $ | 29,617,275 | ||||||||||
Issued in connection with the reinvestment of distributions | 29,643 | 385,065 | 47,449 | 607,824 | ||||||||||||
Redeemed | (563,676 | ) | (7,375,232 | ) | (2,507,120 | ) | (31,220,521 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 1,009,063 | $ | 13,542,788 | (58,255 | ) | $ | (995,422 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (decrease) from capital share transactions | 1,271,902 | $ | 16,966,705 | 276,909 | $ | 3,152,882 | ||||||||||
|
|
|
|
|
|
|
|
(a) | From commencement of operations on May 1, 2017 through December 31, 2017 for Class N shares. |
(b) | Amount rounds to less than one share. |
| 100
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included as part of the Report to Shareholders filed as Item 1 herewith.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Securities Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls and Procedures.
The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.
There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a) | (1) | Not applicable. | ||
(a) | (2) | Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith as Exhibits (a)(2)(1) and (a)(2)(2), respectively. | ||
(a) | (3) | Not applicable. | ||
(b) | Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002 are filed herewith as Exhibit (b). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Gateway Trust | ||
By: | /s/ David L. Giunta | |
Name: | David L. Giunta | |
Title: | President and Chief Executive Officer | |
Date: | August 21, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ David L. Giunta | |
Name: | David L. Giunta | |
Title: | President and Chief Executive Officer | |
Date: | August 21, 2018 |
By: | /s/ Michael C. Kardok | |
Name: | Michael C. Kardok | |
Title: | Treasurer | |
Date: | August 21, 2018 |