UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-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, 2019
Item 1. | Reports to Stockholders. |
The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940 is as follows:
Semiannual Report
June 30, 2019
Gateway Fund
Gateway Equity Call Premium Fund
Table of Contents
Portfolio Review | 1 | |||
Portfolio of Investments | 13 | |||
Financial Statements | 37 | |||
Notes to Financial Statements | 50 | |||
Shareholder Supplement | enclosed | |||
(previously posted to the Fund’s website) |
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IMPORTANT NOTICE TO SHAREHOLDERS
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you wish to continue receiving paper copies of your shareholder reports after January 1, 2021, you can inform the Fund at any time by calling 1-800-225-5478. If you hold your account with a financial intermediary and you wish to continue receiving paper copies after January 1, 2021, you should call your financial intermediary directly. Paper copies are provided free of charge, and your election to receive reports in paper will apply to all funds held with the Natixis Funds complex. If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You currently may elect to receive shareholder reports and other communications from the Fund or your financial intermediary electronically atwww.icsdelivery.com/natixisfunds.
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, 20194
Expense Ratios5 | ||||||||||||||||||||||||||||
6 Months | 1 Year | 5 Years | 10 Years | Life of Class N | Gross | Net | ||||||||||||||||||||||
Class Y (Inception 2/19/08) | ||||||||||||||||||||||||||||
NAV | 5.94 | % | 1.63 | % | 4.06 | % | 5.21 | % | — | % | 0.76 | % | 0.70 | % | ||||||||||||||
Class A (Inception 12/07/77) | ||||||||||||||||||||||||||||
NAV | 5.81 | 1.38 | 3.81 | 4.96 | — | 1.01 | 0.94 | |||||||||||||||||||||
With 5.75% Maximum Sales Charge | -0.27 | -4.46 | 2.59 | 4.34 | — | |||||||||||||||||||||||
Class C (Inception 2/19/08) | ||||||||||||||||||||||||||||
NAV | 5.44 | 0.62 | 3.02 | 4.17 | — | 1.76 | 1.70 | |||||||||||||||||||||
With CDSC1 | 4.44 | -0.38 | 3.02 | 4.17 | — | |||||||||||||||||||||||
Class N (Inception 5/1/17) | ||||||||||||||||||||||||||||
NAV | 5.97 | 1.65 | — | — | 3.45 | 0.70 | 0.65 | |||||||||||||||||||||
Comparative Performance | ||||||||||||||||||||||||||||
S&P 500® Index2 | 18.54 | 10.42 | 10.71 | 14.70 | 12.35 | |||||||||||||||||||||||
Bloomberg Barclays U.S. Aggregate Bond Index3 | 6.11 | 7.87 | 2.95 | 3.90 | 3.80 |
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 ofSEC-registered securities. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed securities, asset-backed securities, and collateralizedmortgage-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 limitations set to expire on 4/30/20. When a Fund’s expenses are below the limitation, 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 limitations. |
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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, 20194
Expense Ratios5 | ||||||||||||||||||||||||
6 Months | 1 Year | Life of Class | Gross | Net | ||||||||||||||||||||
Class Y (Inception 9/30/14) | Class Y/A/C | Class N | ||||||||||||||||||||||
NAV | 9.30 | % | 3.50 | % | 5.75 | % | — | % | 1.19 | % | 0.95 | % | ||||||||||||
Class A (Inception 9/30/14) | ||||||||||||||||||||||||
NAV | 9.17 | 3.21 | 5.47 | — | 1.44 | 1.20 | ||||||||||||||||||
With 5.75% Maximum Sales Charge | 2.90 | -2.70 | 4.17 | — | ||||||||||||||||||||
Class C (Inception 9/30/14) | ||||||||||||||||||||||||
NAV | 8.71 | 2.38 | 4.70 | — | 2.19 | 1.95 | ||||||||||||||||||
With CDSC1 | 7.71 | 1.38 | 4.70 | — | ||||||||||||||||||||
Class N (Inception 5/1/17) | ||||||||||||||||||||||||
NAV | 9.24 | 3.39 | — | 5.02 | 15.41 | 0.90 | ||||||||||||||||||
Comparative Performance | ||||||||||||||||||||||||
Cboe® S&P 500 BuyWrite Index (BXMSM)2 | 10.27 | 3.18 | 6.13 | 5.80 | ||||||||||||||||||||
S&P 500® Index3 | 18.54 | 10.42 | 11.05 | 12.35 |
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 limitations set to expire on 4/30/20. When a Fund’s expenses are below the limitation, 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 limitations. |
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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-PORT. The Funds’ Form N-PORT reports are available on the SEC’s website at www.sec.gov.
CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.
5 |
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, 2019 through June 30, 2019. 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.
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GATEWAY FUND | BEGINNING ACCOUNT VALUE 1/1/2019 | ENDING 6/30/2019 | EXPENSES PAID 1/1/2019 – 6/30/2019 | |||||||||
Class A | ||||||||||||
Actual | $1,000.00 | $1,058.10 | $4.80 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.13 | $4.71 | |||||||||
Class C | ||||||||||||
Actual | $1,000.00 | $1,054.40 | $8.66 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,016.36 | $8.50 | |||||||||
Class N | ||||||||||||
Actual | $1,000.00 | $1,059.70 | $3.32 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.57 | $3.26 | |||||||||
Class Y | ||||||||||||
Actual | $1,000.00 | $1,059.40 | $3.57 | |||||||||
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 1/1/2019 | ENDING ACCOUNT VALUE 6/30/2019 | EXPENSES PAID DURING PERIOD* 1/1/2019 – 6/30/2019 | |||||||||
Class A | ||||||||||||
Actual | $1,000.00 | $1,091.70 | $6.22 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.84 | $6.01 | |||||||||
Class C | ||||||||||||
Actual | $1,000.00 | $1,087.10 | $10.09 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,015.13 | $9.74 | |||||||||
Class N | ||||||||||||
Actual | $1,000.00 | $1,092.40 | $4.67 | |||||||||
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.33 | $4.51 | |||||||||
Class Y | ||||||||||||
Actual | $1,000.00 | $1,093.00 | $4.93 | |||||||||
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). |
7 |
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 additionalone-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 adviser (the “Adviser”) believes 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 Adviser, 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 Adviser and (v) information obtained through the completion by the Adviser of a questionnaire distributed on behalf of the Trustees. The Board, including the Independent Trustees, also considers other matters such as (i) each Fund’s investment objective and strategies and the size, education and experience of the Adviser’s investment staff and its use of technology, external research and trading cost measurement tools, (ii) arrangements in respect of the distribution of the Funds’ shares and the related costs, (iii) 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, (iv) the Adviser’s policies and procedures relating to, among other things, compliance, trading and best execution, proxy voting and valuation, (v) information about amounts invested by the Funds’ portfolio managers in the Funds or in similar accounts that they manage and (vi) 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 Adviser.
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 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 Adviser make periodic presentations to the
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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 aone-year period at its meeting held in June 2019. 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 Adviser and its affiliates to the Funds and the resources dedicated to the Funds by the Adviser and its affiliates.
The Trustees considered not only the advisory services provided by the Adviser 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 Adviser. 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.
The Board noted that, through December 31, 2018, each Fund’sone-, 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 | 43 | % | 44 | % | 28 | % | ||||||
Gateway Equity Call Premium Fund | 58 | % | 32 | % | N/A |
9 |
In the case of a 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) 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, such that its performance relative to its category would be expected to lag in certain market conditions.
The Trustees also considered the Adviser’s performance and reputation generally, the performance of the fund family generally, and the historical responsiveness of the Adviser to Trustee concerns about performance and the willingness of the Adviser 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 Adviser 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 Adviser and its affiliates from their respective relationships with the Funds. The Trustees considered the fees chargedto the Funds for advisory and administrative services as well as the total expense levels of the Funds. Thisinformation included comparisons (provided both by management and by anindependent 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 Adviser to comparableaccounts (such as institutional separate accounts), as well as information about differencesin such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trusteesconsidered, among other things, management’s representations about the differencesbetween managing mutual funds as compared to other types of accounts, including theadditional resources required to effectively manage mutual fund assets and the greater regulatory costsassociated with the management of such assets. In evaluating each Fund’s advisoryfee, the Trustees also took into account the demands, complexity and quality of theinvestment management of such Fund, as well as the need for the Adviser to offer competitivecompensation 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 hadmade recommendations regarding reductions in advisory fee rates, implementation ofadvisory fee breakpoints and the institution of advisory fee waivers and expense caps forvarious 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 Adviser for the Funds under their caps.
The Trustees also considered the compensation directly or indirectly received by the Adviser and its affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Adviser’s and its affiliates’ relationships with the Funds, and information about the allocation of expenses used to calculate profitability. They also reviewed information provided by management
| 10
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 Adviser 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 Adviser and its 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 considered management’s explanation of the factors that are taken into account with respect to the implementation of breakpoints in investment advisory fees or expense caps. With respect to economies of scale, the Trustees noted that the Gateway Fund had breakpoints in its advisory fee and 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 Adviser and its affiliates of their relationships with the Funds, as discussed above. The Trustees also considered that the Funds have benefitted from the substantial reinvestment the Adviser has made into its business.
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 Adviser. They also considered the compliance-related resources the Adviser and its affiliates were providing to the Funds. |
· | So-called “fallout benefits” to the Adviser, such as the engagement of affiliates of the Adviser to provide distribution and administrative services to the Funds, and the benefits of research made available to the Adviser 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 Adviser. 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. |
11 |
· | 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, 2020.
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Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund
Shares | Description | Value (†) | ||||||
Common Stocks — 99.1% of Net Assets | ||||||||
Aerospace & Defense — 2.3% |
| |||||||
196,861 | Boeing Co. (The)(a) | $ | 71,659,373 | |||||
57,682 | Huntington Ingalls Industries, Inc.(a) | 12,963,453 | ||||||
197,320 | Raytheon Co.(a) | 34,310,001 | ||||||
36,256 | TransDigm Group, Inc.(a)(b) | 17,540,653 | ||||||
392,820 | United Technologies Corp.(a) | 51,145,164 | ||||||
|
| |||||||
187,618,644 | ||||||||
|
| |||||||
Air Freight & Logistics — 0.4% |
| |||||||
323,188 | United Parcel Service, Inc., Class B(a) | 33,375,625 | ||||||
45,252 | XPO Logistics, Inc.(a)(b) | 2,616,018 | ||||||
|
| |||||||
35,991,643 | ||||||||
|
| |||||||
Airlines — 0.3% |
| |||||||
111,418 | Alaska Air Group, Inc.(a) | 7,120,724 | ||||||
258,395 | JetBlue Airways Corp.(a)(b) | 4,777,724 | ||||||
170,449 | United Continental Holdings, Inc.(a)(b) | 14,922,810 | ||||||
|
| |||||||
26,821,258 | ||||||||
|
| |||||||
Auto Components — 0.2% |
| |||||||
104,248 | Autoliv, Inc.(a) | 7,350,526 | ||||||
133,959 | Cooper Tire & Rubber Co.(a) | 4,226,406 | ||||||
108,380 | Garrett Motion, Inc.(b) | 1,663,633 | ||||||
117,234 | Veoneer, Inc.(b) | 2,029,321 | ||||||
|
| |||||||
15,269,886 | ||||||||
|
| |||||||
Automobiles — 0.1% |
| |||||||
22,529 | Tesla, Inc.(a)(b) | 5,034,330 | ||||||
|
| |||||||
Banks — 5.9% |
| |||||||
192,903 | Associated Banc-Corp(a) | 4,077,969 | ||||||
3,579,932 | Bank of America Corp.(a) | 103,818,028 | ||||||
968,793 | Citigroup, Inc.(a) | 67,844,574 | ||||||
126,764 | First Republic Bank(a) | 12,378,505 | ||||||
1,133,203 | Huntington Bancshares, Inc.(a) | 15,660,865 | ||||||
1,294,128 | JPMorgan Chase & Co.(a) | 144,683,510 | ||||||
281,777 | Old National Bancorp(a) | 4,674,680 | ||||||
46,222 | Signature Bank(a) | 5,585,467 | ||||||
40,875 | SVB Financial Group(a)(b) | 9,180,116 | ||||||
758,365 | U.S. Bancorp(a) | 39,738,326 | ||||||
1,473,461 | Wells Fargo & Co.(a) | 69,724,175 | ||||||
|
| |||||||
477,366,215 | ||||||||
|
| |||||||
Beverages — 2.1% |
| |||||||
1,513,229 | Coca-Cola Co. (The)(a) | 77,053,621 | ||||||
213,386 | Monster Beverage Corp.(a)(b) | 13,620,428 | ||||||
594,999 | PepsiCo, Inc.(a) | 78,022,219 | ||||||
|
| |||||||
168,696,268 | ||||||||
|
| |||||||
Biotechnology — 2.7% |
| |||||||
514,130 | AbbVie, Inc.(a) | 37,387,534 |
See accompanying notes to financial statements.
13 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Biotechnology — continued |
| |||||||
289,556 | Amgen, Inc.(a) | $ | 53,359,380 | |||||
108,706 | Biogen, Inc.(a)(b) | 25,423,072 | ||||||
330,848 | Celgene Corp.(a)(b) | 30,583,589 | ||||||
564,732 | Gilead Sciences, Inc.(a) | 38,153,294 | ||||||
41,443 | Ionis Pharmaceuticals, Inc.(a)(b) | 2,663,542 | ||||||
53,283 | Seattle Genetics, Inc.(a)(b) | 3,687,716 | ||||||
134,540 | Vertex Pharmaceuticals, Inc.(a)(b) | 24,671,945 | ||||||
|
| |||||||
215,930,072 | ||||||||
|
| |||||||
Building Products — 0.3% |
| |||||||
401,198 | Johnson Controls International PLC(a) | 16,573,490 | ||||||
27,581 | Lennox International, Inc.(a) | 7,584,775 | ||||||
30,459 | Resideo Technologies, Inc.(b) | 667,661 | ||||||
|
| |||||||
24,825,926 | ||||||||
|
| |||||||
Capital Markets — 2.6% |
| |||||||
593,847 | Bank of New York Mellon Corp. (The)(a) | 26,218,345 | ||||||
625,733 | Charles Schwab Corp. (The)(a) | 25,148,209 | ||||||
158,259 | Eaton Vance Corp.(a) | 6,825,711 | ||||||
37,922 | FactSet Research Systems, Inc.(a) | 10,866,928 | ||||||
180,153 | Goldman Sachs Group, Inc. (The)(a) | 36,859,304 | ||||||
393,785 | Intercontinental Exchange, Inc.(a) | 33,841,883 | ||||||
136,865 | Legg Mason, Inc.(a) | 5,239,192 | ||||||
13,085 | MarketAxess Holdings, Inc.(a) | 4,205,781 | ||||||
828,584 | Morgan Stanley(a) | 36,300,265 | ||||||
76,597 | MSCI, Inc.(a) | 18,290,598 | ||||||
117,036 | TD Ameritrade Holding Corp.(a) | 5,842,437 | ||||||
129,365 | Waddell & Reed Financial, Inc., Class A(a) | 2,156,514 | ||||||
|
| |||||||
211,795,167 | ||||||||
|
| |||||||
Chemicals — 1.9% |
| |||||||
40,841 | AdvanSix, Inc.(b) | 997,746 | ||||||
115,188 | Ashland Global Holdings, Inc.(a) | 9,211,584 | ||||||
97,886 | Celanese Corp., Series A(a) | 10,552,111 | ||||||
82,520 | Chemours Co. (The) | 1,980,480 | ||||||
407,645 | Corteva, Inc.(a)(b) | 12,054,063 | ||||||
335,075 | Dow, Inc.(a) | 16,522,548 | ||||||
407,645 | DuPont de Nemours, Inc.(a) | 30,601,910 | ||||||
211,462 | Eastman Chemical Co.(a) | 16,458,088 | ||||||
33,349 | Ingevity Corp.(a)(b) | 3,507,314 | ||||||
295,365 | LyondellBasell Industries NV, Class A(a) | 25,439,788 | ||||||
270,132 | Olin Corp.(a) | 5,918,592 | ||||||
171,746 | RPM International, Inc.(a) | 10,495,398 | ||||||
412,546 | Valvoline, Inc.(a) | 8,057,023 | ||||||
|
| |||||||
151,796,645 | ||||||||
|
| |||||||
Commercial Services & Supplies — 0.5% |
| |||||||
106,013 | Copart, Inc.(a)(b) | 7,923,411 | ||||||
53,505 | Waste Connections, Inc.(a) | 5,114,008 |
See accompanying notes to financial statements.
| 14
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Commercial Services & Supplies — continued |
| |||||||
244,724 | Waste Management, Inc.(a) | $ | 28,233,808 | |||||
|
| |||||||
41,271,227 | ||||||||
|
| |||||||
Communications Equipment — 1.4% |
| |||||||
25,654 | Arista Networks, Inc.(a)(b) | 6,660,291 | ||||||
1,619,843 | Cisco Systems, Inc.(a) | 88,654,007 | ||||||
106,013 | Motorola Solutions, Inc.(a) | 17,675,548 | ||||||
|
| |||||||
112,989,846 | ||||||||
|
| |||||||
Consumer Finance — 0.3% |
| |||||||
121,623 | Ally Financial, Inc.(a) | 3,769,097 | ||||||
308,240 | Discover Financial Services(a) | 23,916,341 | ||||||
|
| |||||||
27,685,438 | ||||||||
|
| |||||||
Containers & Packaging — 0.4% |
| |||||||
116,867 | Avery Dennison Corp.(a) | 13,519,174 | ||||||
135,652 | Sonoco Products Co.(a) | 8,863,502 | ||||||
180,346 | WestRock Co.(a) | 6,577,219 | ||||||
|
| |||||||
28,959,895 | ||||||||
|
| |||||||
Distributors — 0.2% |
| |||||||
149,822 | Genuine Parts Co.(a) | 15,518,563 | ||||||
|
| |||||||
Diversified Consumer Services — 0.0% |
| |||||||
80,237 | Service Corp. International(a) | 3,753,487 | ||||||
|
| |||||||
Diversified Financial Services — 2.0% |
| |||||||
745,041 | Berkshire Hathaway, Inc., Class B(a)(b) | 158,820,390 | ||||||
|
| |||||||
Diversified Telecommunication Services — 2.0% |
| |||||||
2,521,533 | AT&T, Inc.(a) | 84,496,571 | ||||||
1,375,363 | Verizon Communications, Inc.(a) | 78,574,488 | ||||||
|
| |||||||
163,071,059 | ||||||||
|
| |||||||
Electric Utilities — 1.5% |
| |||||||
512,757 | Alliant Energy Corp.(a) | 25,166,114 | ||||||
435,727 | American Electric Power Co., Inc.(a) | 38,348,333 | ||||||
460,827 | Duke Energy Corp.(a) | 40,663,374 | ||||||
138,237 | Evergy, Inc.(a) | 8,314,956 | ||||||
13,545 | Hawaiian Electric Industries, Inc. | 589,885 | ||||||
153,399 | OGE Energy Corp.(a) | 6,528,661 | ||||||
|
| |||||||
119,611,323 | ||||||||
|
| |||||||
Electrical Equipment — 0.6% |
| |||||||
229,541 | Eaton Corp. PLC(a) | 19,116,174 | ||||||
341,749 | Emerson Electric Co.(a) | 22,801,493 | ||||||
36,487 | Hubbell, Inc.(a) | 4,757,905 | ||||||
32,431 | nVent Electric PLC | 803,965 | ||||||
|
| |||||||
47,479,537 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.6% |
| |||||||
113,461 | CDW Corp.(a) | 12,594,171 | ||||||
522,510 | Corning, Inc.(a) | 17,363,007 |
See accompanying notes to financial statements.
15 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Electronic Equipment, Instruments & Components — continued |
| |||||||
279,109 | Trimble, Inc.(a)(b) | $ | 12,590,607 | |||||
28,369 | Zebra Technologies Corp., Class A(a)(b) | 5,943,022 | ||||||
|
| |||||||
48,490,807 | ||||||||
|
| |||||||
Entertainment — 2.2% |
| |||||||
297,296 | Activision Blizzard, Inc.(a) | 14,032,371 | ||||||
63,075 | Live Nation Entertainment, Inc.(a)(b) | 4,178,719 | ||||||
160,624 | Netflix, Inc.(a)(b) | 59,000,408 | ||||||
64,368 | Take-Two Interactive Software, Inc.(a)(b) | 7,307,699 | ||||||
670,992 | Walt Disney Co. (The)(a) | 93,697,323 | ||||||
|
| |||||||
178,216,520 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.2% |
| |||||||
425,571 | Walgreens Boots Alliance, Inc.(a) | 23,265,966 | ||||||
676,008 | Walmart, Inc.(a) | 74,692,124 | ||||||
|
| |||||||
97,958,090 | ||||||||
|
| |||||||
Food Products — 0.8% |
| |||||||
105,472 | Bunge Ltd.(a) | 5,875,845 | ||||||
66,489 | Ingredion, Inc.(a) | 5,484,678 | ||||||
118,515 | Lamb Weston Holdings, Inc.(a) | 7,509,110 | ||||||
900,650 | Mondelez International, Inc., Class A(a) | 48,545,035 | ||||||
|
| |||||||
67,414,668 | ||||||||
|
| |||||||
Gas Utilities — 0.1% |
| |||||||
8,848 | Atmos Energy Corp. | 933,995 | ||||||
90,899 | National Fuel Gas Co.(a) | 4,794,922 | ||||||
28,803 | UGI Corp. | 1,538,368 | ||||||
|
| |||||||
7,267,285 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 3.4% |
| |||||||
763,559 | Abbott Laboratories(a) | 64,215,312 | ||||||
42,056 | Align Technology, Inc.(a)(b) | 11,510,727 | ||||||
288,581 | Baxter International, Inc.(a) | 23,634,784 | ||||||
714,099 | Boston Scientific Corp.(a)(b) | 30,691,975 | ||||||
23,852 | DexCom, Inc.(a)(b) | 3,573,984 | ||||||
105,181 | Edwards Lifesciences Corp.(a)(b) | 19,431,138 | ||||||
292,284 | Hologic, Inc.(a)(b) | 14,035,478 | ||||||
57,944 | Intuitive Surgical, Inc.(a)(b) | 30,394,525 | ||||||
585,749 | Medtronic PLC(a) | 57,046,095 | ||||||
106,088 | ResMed, Inc.(a) | 12,945,918 | ||||||
24,825 | STERIS PLC(a) | 3,695,946 | ||||||
24,419 | Teleflex, Inc.(a) | 8,086,352 | ||||||
|
| |||||||
279,262,234 | ||||||||
|
| |||||||
Health Care Providers & Services — 2.7% |
| |||||||
124,345 | Anthem, Inc.(a) | 35,091,402 | ||||||
158,775 | Cigna Corp.(a) | 25,015,001 | ||||||
493,901 | CVS Health Corp.(a) | 26,912,666 | ||||||
139,368 | HCA Healthcare, Inc.(a) | 18,838,373 | ||||||
15,423 | Molina Healthcare, Inc.(a)(b) | 2,207,648 |
See accompanying notes to financial statements.
| 16
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Health Care Providers & Services — continued |
| |||||||
107,436 | Quest Diagnostics, Inc.(a) | $ | 10,938,059 | |||||
378,849 | UnitedHealth Group, Inc.(a) | 92,442,945 | ||||||
71,490 | Universal Health Services, Inc., Class B(a) | 9,321,581 | ||||||
|
| |||||||
220,767,675 | ||||||||
|
| |||||||
Health Care Technology — 0.1% |
| |||||||
37,666 | Veeva Systems, Inc., Class A(a)(b) | 6,106,035 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure — 1.8% |
| |||||||
28,056 | Domino’s Pizza, Inc.(a) | 7,807,424 | ||||||
127,795 | Hilton Grand Vacations, Inc.(a)(b) | 4,066,437 | ||||||
252,265 | Hilton Worldwide Holdings, Inc.(a) | 24,656,381 | ||||||
77,044 | Las Vegas Sands Corp.(a) | 4,552,530 | ||||||
368,215 | McDonald’s Corp.(a) | 76,463,527 | ||||||
97,500 | Melco Resorts & Entertainment Ltd., Sponsored ADR(a) | 2,117,700 | ||||||
463,851 | MGM Resorts International(a) | 13,252,223 | ||||||
91,903 | Restaurant Brands International, Inc.(a) | 6,390,935 | ||||||
10,028 | Vail Resorts, Inc.(a) | 2,237,447 | ||||||
401,168 | Wendy’s Co. (The)(a) | 7,854,869 | ||||||
|
| |||||||
149,399,473 | ||||||||
|
| |||||||
Household Durables — 0.2% |
| |||||||
2,523 | NVR, Inc.(a)(b) | 8,503,141 | ||||||
286,997 | Toll Brothers, Inc.(a) | 10,509,830 | ||||||
18,928 | Tupperware Brands Corp. | 360,200 | ||||||
|
| |||||||
19,373,171 | ||||||||
|
| |||||||
Household Products — 1.7% |
| |||||||
453,289 | Colgate-Palmolive Co.(a) | 32,487,223 | ||||||
975,583 | Procter & Gamble Co. (The)(a) | 106,972,676 | ||||||
|
| |||||||
139,459,899 | ||||||||
|
| |||||||
Industrial Conglomerates — 1.6% |
| |||||||
210,034 | 3M Co.(a) | 36,407,294 | ||||||
3,471,039 | General Electric Co.(a) | 36,445,909 | ||||||
333,797 | Honeywell International, Inc.(a) | 58,277,618 | ||||||
|
| |||||||
131,130,821 | ||||||||
|
| |||||||
Insurance — 2.2% |
| |||||||
513,750 | Aflac, Inc.(a) | 28,158,638 | ||||||
245,503 | Allstate Corp. (The)(a) | 24,965,200 | ||||||
69,580 | American Financial Group, Inc.(a) | 7,129,863 | ||||||
499,391 | American International Group, Inc.(a) | 26,607,552 | ||||||
164,143 | Aon PLC(a) | 31,676,316 | ||||||
294,681 | Arch Capital Group Ltd.(a)(b) | 10,926,771 | ||||||
267,388 | Arthur J. Gallagher & Co.(a) | 23,420,515 | ||||||
100,086 | Fidelity National Financial, Inc.(a) | 4,033,466 | ||||||
280,812 | Lincoln National Corp.(a) | 18,098,333 | ||||||
|
| |||||||
175,016,654 | ||||||||
|
|
See accompanying notes to financial statements.
17 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Interactive Media & Services — 4.8% |
| |||||||
68,729 | Alphabet, Inc., Class A(a)(b) | $ | 74,419,761 | |||||
140,172 | Alphabet, Inc., Class C(a)(b) | 151,513,316 | ||||||
16,227 | Baidu, Inc., Sponsored ADR(b) | 1,904,401 | ||||||
832,496 | Facebook, Inc., Class A(a)(b) | 160,671,728 | ||||||
56,415 | Zillow Group, Inc., Class C(a)(b) | 2,617,092 | ||||||
|
| |||||||
391,126,298 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 3.9% |
| |||||||
141,822 | Amazon.com, Inc.(a)(b) | 268,558,394 | ||||||
17,031 | Booking Holdings, Inc.(a)(b) | 31,928,186 | ||||||
363,128 | eBay, Inc.(a) | 14,343,556 | ||||||
4,992 | MercadoLibre, Inc.(a)(b) | 3,053,956 | ||||||
|
| |||||||
317,884,092 | ||||||||
|
| |||||||
IT Services — 4.8% |
| |||||||
185,307 | Automatic Data Processing, Inc.(a) | 30,636,806 | ||||||
6,683 | Black Knight, Inc.(b) | 401,982 | ||||||
102,965 | Broadridge Financial Solutions, Inc.(a) | 13,146,571 | ||||||
282,787 | Cognizant Technology Solutions Corp., Class A(a) | 17,925,868 | ||||||
202,833 | Fidelity National Information Services, Inc.(a) | 24,883,552 | ||||||
46,077 | FleetCor Technologies, Inc.(a)(b) | 12,940,725 | ||||||
344,693 | International Business Machines Corp.(a) | 47,533,165 | ||||||
60,744 | Jack Henry & Associates, Inc.(a) | 8,134,837 | ||||||
66,043 | Leidos Holdings, Inc.(a) | 5,273,534 | ||||||
195,862 | Paychex, Inc.(a) | 16,117,484 | ||||||
473,273 | PayPal Holdings, Inc.(a)(b) | 54,170,828 | ||||||
103,624 | VeriSign, Inc.(a)(b) | 21,673,996 | ||||||
765,284 | Visa, Inc., Class A(a) | 132,815,038 | ||||||
379,264 | Western Union Co. (The)(a) | 7,543,561 | ||||||
|
| |||||||
393,197,947 | ||||||||
|
| |||||||
Leisure Products — 0.0% |
| |||||||
39,532 | Polaris Industries, Inc.(a) | 3,606,504 | ||||||
|
| |||||||
Life Sciences Tools & Services — 0.4% |
| |||||||
76,867 | Illumina, Inc.(a)(b) | 28,298,586 | ||||||
39,674 | PRA Health Sciences, Inc.(a)(b) | 3,933,677 | ||||||
|
| |||||||
32,232,263 | ||||||||
|
| |||||||
Machinery — 1.7% |
| |||||||
256,592 | Caterpillar, Inc.(a) | 34,970,924 | ||||||
116,361 | Cummins, Inc.(a) | 19,937,294 | ||||||
155,866 | Deere & Co.(a) | 25,828,555 | ||||||
82,178 | IDEX Corp.(a) | 14,146,121 | ||||||
123,213 | Parker Hannifin Corp.(a) | 20,947,442 | ||||||
305,583 | Pentair PLC(a) | 11,367,687 | ||||||
59,403 | Snap-on, Inc.(a) | 9,839,513 | ||||||
90,094 | Timken Co. (The)(a) | 4,625,426 | ||||||
|
| |||||||
141,662,962 | ||||||||
|
|
See accompanying notes to financial statements.
| 18
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Media — 1.3% |
| |||||||
1,721,259 | Comcast Corp., Class A(a) | $ | 72,774,830 | |||||
64,667 | Liberty Broadband Corp., Class C(a)(b) | 6,739,595 | ||||||
185,047 | Liberty Global PLC, Series C(a)(b) | 4,909,297 | ||||||
83,437 | Liberty Latin America Ltd., Class C(b) | 1,434,282 | ||||||
100,282 | News Corp., Class B | 1,399,937 | ||||||
150,886 | Omnicom Group, Inc.(a) | 12,365,108 | ||||||
571,783 | Sirius XM Holdings, Inc.(a) | 3,190,549 | ||||||
|
| |||||||
102,813,598 | ||||||||
|
| |||||||
Metals & Mining — 0.2% |
| |||||||
201,653 | Southern Copper Corp.(a) | 7,834,219 | ||||||
289,999 | Steel Dynamics, Inc.(a) | 8,757,970 | ||||||
54,433 | Worthington Industries, Inc.(a) | 2,191,472 | ||||||
|
| |||||||
18,783,661 | ||||||||
|
| |||||||
Multi-Utilities — 1.7% |
| |||||||
312,616 | Ameren Corp.(a) | 23,480,588 | ||||||
439,227 | CenterPoint Energy, Inc.(a) | 12,575,069 | ||||||
273,147 | Consolidated Edison, Inc.(a) | 23,949,529 | ||||||
374,870 | Public Service Enterprise Group, Inc.(a) | 22,049,853 | ||||||
114,834 | Sempra Energy(a) | 15,782,785 | ||||||
477,207 | WEC Energy Group, Inc.(a) | 39,784,748 | ||||||
|
| |||||||
137,622,572 | ||||||||
|
| |||||||
Multiline Retail — 0.4% |
| |||||||
152,781 | Nordstrom, Inc.(a) | 4,867,603 | ||||||
304,310 | Target Corp.(a) | 26,356,289 | ||||||
|
| |||||||
31,223,892 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 5.0% |
| |||||||
112,695 | Cheniere Energy, Inc.(a)(b) | 7,713,973 | ||||||
794,771 | Chevron Corp.(a) | 98,901,303 | ||||||
925,692 | ConocoPhillips(a) | 56,467,212 | ||||||
427,411 | Continental Resources, Inc.(a)(b) | 17,989,729 | ||||||
1,718,453 | Exxon Mobil Corp.(a) | 131,685,053 | ||||||
107,081 | HollyFrontier Corp.(a) | 4,955,709 | ||||||
518,643 | Occidental Petroleum Corp.(a) | 26,077,370 | ||||||
259,998 | ONEOK, Inc.(a) | 17,890,462 | ||||||
270,446 | Phillips 66(a) | 25,297,519 | ||||||
112,009 | Targa Resources Corp.(a) | 4,397,473 | ||||||
197,255 | Valero Energy Corp.(a) | 16,887,001 | ||||||
|
| |||||||
408,262,804 | ||||||||
|
| |||||||
Personal Products — 0.3% |
| |||||||
110,358 | Estee Lauder Cos., Inc. (The), Class A(a) | 20,207,653 | ||||||
46,643 | Herbalife Nutrition Ltd.(a)(b) | 1,994,455 | ||||||
|
| |||||||
22,202,108 | ||||||||
|
| |||||||
Pharmaceuticals — 4.7% |
| |||||||
591,665 | Bristol-Myers Squibb Co.(a) | 26,832,008 | ||||||
370,550 | Eli Lilly & Co.(a) | 41,053,234 |
See accompanying notes to financial statements.
19 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Pharmaceuticals — continued |
| |||||||
27,123 | Jazz Pharmaceuticals PLC(a)(b) | $ | 3,866,655 | |||||
938,297 | Johnson & Johnson(a) | 130,686,006 | ||||||
993,696 | Merck & Co., Inc.(a) | 83,321,410 | ||||||
2,137,324 | Pfizer, Inc.(a) | 92,588,876 | ||||||
34,280 | Takeda Pharmaceutlcal Co. Ltd., Sponsored ADR | 606,756 | ||||||
|
| |||||||
378,954,945 | ||||||||
|
| |||||||
Professional Services — 0.6% |
| |||||||
17,970 | CoStar Group, Inc.(a)(b) | 9,956,458 | ||||||
54,075 | ManpowerGroup, Inc.(a) | 5,223,645 | ||||||
84,606 | TransUnion(a) | 6,219,387 | ||||||
176,238 | Verisk Analytics, Inc.(a) | 25,811,818 | ||||||
|
| |||||||
47,211,308 | ||||||||
|
| |||||||
REITs – Apartments — 0.6% |
| |||||||
192,021 | Camden Property Trust(a) | 20,045,072 | ||||||
617,097 | UDR, Inc.(a) | 27,701,484 | ||||||
|
| |||||||
47,746,556 | ||||||||
|
| |||||||
REITs – Diversified — 0.6% |
| |||||||
165,129 | Digital Realty Trust, Inc.(a) | 19,450,545 | ||||||
664,704 | Duke Realty Corp.(a) | 21,011,293 | ||||||
73,636 | W.P. Carey, Inc.(a) | 5,977,771 | ||||||
|
| |||||||
46,439,609 | ||||||||
|
| |||||||
REITs – Health Care — 0.5% |
| |||||||
260,504 | Healthcare Realty Trust, Inc.(a) | 8,158,985 | ||||||
419,069 | Medical Properties Trust, Inc.(a) | 7,308,563 | ||||||
233,714 | Sabra Health Care REIT, Inc.(a) | 4,601,829 | ||||||
310,797 | Ventas, Inc.(a) | 21,242,975 | ||||||
|
| |||||||
41,312,352 | ||||||||
|
| |||||||
REITs – Hotels — 0.1% |
| |||||||
159,507 | Park Hotels & Resorts, Inc.(a) | 4,396,013 | ||||||
|
| |||||||
REITs – Manufactured Homes — 0.1% |
| |||||||
48,503 | Sun Communities, Inc.(a) | 6,217,600 | ||||||
|
| |||||||
REITs – Mortgage — 0.1% |
| |||||||
133,353 | AGNC Investment Corp.(a) | 2,242,998 | ||||||
326,064 | Annaly Capital Management, Inc.(a) | 2,976,964 | ||||||
|
| |||||||
5,219,962 | ||||||||
|
| |||||||
REITs – Office Property — 0.3% |
| |||||||
222,920 | Kilroy Realty Corp.(a) | 16,453,725 | ||||||
246,737 | Mack-Cali Realty Corp.(a) | 5,746,505 | ||||||
|
| |||||||
22,200,230 | ||||||||
|
| |||||||
REITs – Shopping Centers — 0.3% |
| |||||||
354,094 | Regency Centers Corp.(a) | 23,632,234 | ||||||
|
| |||||||
REITs – Single Tenant — 0.2% |
| |||||||
279,887 | National Retail Properties, Inc.(a) | 14,836,810 | ||||||
|
|
See accompanying notes to financial statements.
| 20
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
REITs – Storage — 0.2% |
| |||||||
185,128 | Extra Space Storage, Inc.(a) | $ | 19,642,081 | |||||
|
| |||||||
REITs – Warehouse/Industrials — 0.2% |
| |||||||
271,168 | Liberty Property Trust(a) | 13,569,247 | ||||||
|
| |||||||
Road & Rail — 1.1% |
| |||||||
29,457 | Canadian Pacific Railway Ltd.(a) | 6,929,465 | ||||||
377,932 | CSX Corp.(a) | 29,240,599 | ||||||
48,966 | Old Dominion Freight Line, Inc.(a) | 7,308,665 | ||||||
280,121 | Union Pacific Corp.(a) | 47,371,262 | ||||||
|
| |||||||
90,849,991 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 3.8% |
| |||||||
438,030 | Advanced Micro Devices, Inc.(a)(b) | 13,302,971 | ||||||
246,797 | Analog Devices, Inc.(a) | 27,855,977 | ||||||
142,533 | Broadcom, Inc.(a) | 41,029,549 | ||||||
1,562,164 | Intel Corp.(a) | 74,780,791 | ||||||
157,797 | Microchip Technology, Inc.(a) | 13,681,000 | ||||||
231,437 | NVIDIA Corp.(a) | 38,008,899 | ||||||
452,025 | QUALCOMM, Inc.(a) | 34,385,542 | ||||||
91,532 | Skyworks Solutions, Inc.(a) | 7,072,678 | ||||||
281,442 | Teradyne, Inc.(a) | 13,483,886 | ||||||
406,345 | Texas Instruments, Inc.(a) | 46,632,152 | ||||||
|
| |||||||
310,233,445 | ||||||||
|
| |||||||
Software — 7.0% |
| |||||||
216,148 | Adobe, Inc.(a)(b) | 63,688,008 | ||||||
70,618 | ANSYS, Inc.(a)(b) | 14,463,979 | ||||||
188,193 | Cadence Design Systems, Inc.(a)(b) | 13,325,946 | ||||||
57,460 | Check Point Software Technologies Ltd.(a)(b) | 6,642,951 | ||||||
88,528 | Fortinet, Inc.(a)(b) | 6,801,606 | ||||||
2,642,862 | Microsoft Corp.(a) | 354,037,794 | ||||||
232,052 | Nuance Communications, Inc.(a)(b) | 3,705,870 | ||||||
985,446 | Oracle Corp.(a) | 56,140,859 | ||||||
23,152 | Palo Alto Networks, Inc.(a)(b) | 4,717,452 | ||||||
8,867 | Paycom Software, Inc.(a)(b) | 2,010,326 | ||||||
66,929 | PTC, Inc.(a)(b) | 6,007,547 | ||||||
36,812 | ServiceNow, Inc.(a)(b) | 10,107,471 | ||||||
70,943 | SS&C Technologies Holdings, Inc.(a) | 4,087,026 | ||||||
278,545 | Symantec Corp.(a) | 6,061,139 | ||||||
29,720 | VMware, Inc., Class A(a) | 4,969,481 | ||||||
41,024 | Workday, Inc., Class A(a)(b) | 8,433,714 | ||||||
|
| |||||||
565,201,169 | ||||||||
|
| |||||||
Specialty Retail — 2.3% |
| |||||||
228,999 | American Eagle Outfitters, Inc.(a) | 3,870,083 | ||||||
18,467 | Burlington Stores, Inc.(a)(b) | 3,142,160 | ||||||
91,935 | Foot Locker, Inc.(a) | 3,853,915 | ||||||
472,674 | Home Depot, Inc. (The)(a) | 98,302,012 | ||||||
350,204 | Lowe’s Cos., Inc.(a) | 35,339,086 | ||||||
100,645 | Tiffany & Co.(a) | 9,424,398 |
See accompanying notes to financial statements.
21 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Shares | Description | Value (†) | ||||||
Specialty Retail — continued |
| |||||||
589,779 | TJX Cos., Inc. (The)(a) | $ | 31,187,513 | |||||
|
| |||||||
185,119,167 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 3.7% |
| |||||||
1,487,870 | Apple, Inc.(a) | 294,479,230 | ||||||
58,386 | Dell Technologies, Inc., Class C(a)(b) | 2,966,009 | ||||||
|
| |||||||
297,445,239 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 0.8% |
| |||||||
46,778 | Lululemon Athletica, Inc.(a)(b) | 8,429,864 | ||||||
531,919 | NIKE, Inc., Class B(a) | 44,654,600 | ||||||
99,313 | PVH Corp.(a) | 9,398,982 | ||||||
|
| |||||||
62,483,446 | ||||||||
|
| |||||||
Tobacco — 0.9% |
| |||||||
634,115 | Altria Group, Inc.(a) | 30,025,345 | ||||||
540,455 | Philip Morris International, Inc.(a) | 42,441,931 | ||||||
|
| |||||||
72,467,276 | ||||||||
|
| |||||||
Trading Companies & Distributors — 0.1% |
| |||||||
62,797 | GATX Corp.(a) | 4,979,174 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.1% |
| |||||||
500,968 | Sprint Corp.(a)(b) | 3,291,360 | ||||||
61,168 | T-Mobile US, Inc.(a)(b) | 4,534,995 | ||||||
|
| |||||||
7,826,355 | ||||||||
|
| |||||||
Total Common Stocks (Identified Cost $4,980,436,612) | 8,028,773,061 | |||||||
|
| |||||||
Total Purchased Options — 0.4% (Identified Cost $71,435,270) (see detail below) | 31,720,050 | |||||||
|
| |||||||
Principal Amount | ||||||||
Short-Term Investments — 2.6% | ||||||||
$ | 212,231,981 | Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/28/2019 at 1.500% to be repurchased at $212,258,510 on 7/01/2019 collateralized by $207,805,000 U.S. Treasury Inflation Indexed Note, 0.625% due 4/15/2023 valued at $216,481,690 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $212,231,981) | 212,231,981 | |||||
|
| |||||||
Total Investments — 102.1% (Identified Cost $5,264,103,863) | 8,272,725,092 | |||||||
Other assets less liabilities — (2.1)% | (172,796,152 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 8,099,928,940 | ||||||
|
|
See accompanying notes to financial statements.
| 22
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Purchased Options — 0.4% |
| |||||||||||||||||||||||
Description | Expiration Date | Exercise Price | Contracts | Notional Amount | Cost | Value (†) | ||||||||||||||||||
Index Options — 0.4% |
| |||||||||||||||||||||||
S&P 500® Index, Put(b) | 8/16/2019 | 2,575 | 3,382 | $ | 994,903,232 | $ | 9,072,215 | $ | 1,843,190 | |||||||||||||||
S&P 500® Index, Put(b) | 8/16/2019 | 2,625 | 3,382 | 994,903,232 | 4,412,056 | 2,485,770 | ||||||||||||||||||
S&P 500® Index, Put(b) | 8/16/2019 | 2,650 | 3,382 | 994,903,232 | 9,467,909 | 2,874,700 | ||||||||||||||||||
S&P 500® Index, Put(b) | 8/16/2019 | 2,675 | 3,382 | 994,903,232 | 8,294,355 | 3,348,180 | ||||||||||||||||||
S&P 500® Index, Put(b) | 9/20/2019 | 2,575 | 3,382 | 994,903,232 | 11,202,875 | 4,396,600 | ||||||||||||||||||
S&P 500® Index, Put(b) | 9/20/2019 | 2,600 | 3,381 | 994,609,056 | 12,450,532 | 4,936,260 | ||||||||||||||||||
S&P 500® Index, Put(b) | 9/20/2019 | 2,625 | 3,381 | 994,609,056 | 8,968,103 | 5,578,650 | ||||||||||||||||||
S&P 500® Index, Put(b) | 9/20/2019 | 2,650 | 3,382 | 994,903,232 | 7,567,225 | 6,256,700 | ||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Total | $ | 71,435,270 | $ | 31,720,050 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Written Options — (2.2%) |
| |||||||||||||||||||||||
Description | Expiration Date | Exercise Price | Contracts | Notional Amount | Premiums (Received) | Value (†) | ||||||||||||||||||
Index Options — (2.2%) |
| |||||||||||||||||||||||
S&P 500® Index, Call | 7/19/2019 | 2,900 | (3,006 | ) | $ | (884,293,056 | ) | $ | (23,970,425 | ) | $ | (19,418,760 | ) | |||||||||||
S&P 500® Index, Call | 7/19/2019 | 2,925 | (6,011 | ) | (1,768,291,936 | ) | (25,531,773 | ) | (28,101,425 | ) | ||||||||||||||
S&P 500® Index, Call | 7/19/2019 | 2,950 | (3,007 | ) | (884,587,232 | ) | (18,508,899 | ) | (9,487,085 | ) | ||||||||||||||
S&P 500® Index, Call | 8/16/2019 | 2,850 | (3,006 | ) | (884,293,056 | ) | (29,751,885 | ) | (36,883,620 | ) | ||||||||||||||
S&P 500® Index, Call | 8/16/2019 | 2,900 | (3,006 | ) | (884,293,056 | ) | (19,200,825 | ) | (25,520,940 | ) | ||||||||||||||
S&P 500® Index, Call | 8/16/2019 | 2,925 | (3,006 | ) | (884,293,056 | ) | (23,072,066 | ) | (20,395,710 | ) | ||||||||||||||
S&P 500® Index, Call | 8/16/2019 | 2,975 | (3,006 | ) | (884,293,056 | ) | (14,613,398 | ) | (11,663,280 | ) | ||||||||||||||
S&P 500® Index, Call | 9/20/2019 | 2,925 | (3,006 | ) | (884,293,056 | ) | (29,751,885 | ) | (26,633,160 | ) | ||||||||||||||
|
|
|
| |||||||||||||||||||||
Total | $ | (184,401,156 | ) | $ | (178,103,980 | ) | ||||||||||||||||||
|
|
|
|
(†) | 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.
23 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Fund – (continued)
Industry Summary at June 30, 2019 (Unaudited)
Software | 7.0 | % | ||
Banks | 5.9 | |||
Oil, Gas & Consumable Fuels | 5.0 | |||
IT Services | 4.8 | |||
Interactive Media & Services | 4.8 | |||
Pharmaceuticals | 4.7 | |||
Internet & Direct Marketing Retail | 3.9 | |||
Semiconductors & Semiconductor Equipment | 3.8 | |||
Technology Hardware, Storage & Peripherals | 3.7 | |||
Health Care Equipment & Supplies | 3.4 | |||
Health Care Providers & Services | 2.7 | |||
Biotechnology | 2.7 | |||
Capital Markets | 2.6 | |||
Aerospace & Defense | 2.3 | |||
Specialty Retail | 2.3 | |||
Entertainment | 2.2 | |||
Insurance | 2.2 | |||
Beverages | 2.1 | |||
Diversified Telecommunication Services | 2.0 | |||
Diversified Financial Services | 2.0 | |||
Other Investments, less than 2% each | 29.4 | |||
Short-Term Investments | 2.6 | |||
|
| |||
Total Investments | 102.1 | |||
Other assets less liabilities (including open written options) | (2.1 | ) | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
See accompanying notes to financial statements.
| 24
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund
Shares | Description | Value (†) | ||||||
Common Stocks — 100.7% of Net Assets | ||||||||
Aerospace & Defense — 2.7% |
| |||||||
1,423 | Boeing Co. (The)(a) | $ | 517,986 | |||||
223 | Huntington Ingalls Industries, Inc.(a) | 50,117 | ||||||
1,047 | Lockheed Martin Corp.(a) | 380,627 | ||||||
1,300 | Raytheon Co.(a) | 226,044 | ||||||
3,150 | United Technologies Corp.(a) | 410,130 | ||||||
|
| |||||||
1,584,904 | ||||||||
|
| |||||||
Air Freight & Logistics — 0.4% |
| |||||||
1,424 | FedEx Corp.(a) | 233,806 | ||||||
397 | XPO Logistics, Inc.(a)(b) | 22,951 | ||||||
|
| |||||||
256,757 | ||||||||
|
| |||||||
Airlines — 0.5% |
| |||||||
468 | Alaska Air Group, Inc.(a) | 29,910 | ||||||
2,821 | Delta Air Lines, Inc.(a) | 160,092 | ||||||
501 | JetBlue Airways Corp.(a)(b) | 9,263 | ||||||
767 | United Continental Holdings, Inc.(a)(b) | 67,151 | ||||||
|
| |||||||
266,416 | ||||||||
|
| |||||||
Auto Components — 0.2% |
| |||||||
858 | Adient PLC | 20,824 | ||||||
315 | Garrett Motion, Inc.(a)(b) | 4,835 | ||||||
833 | Gentex Corp.(a) | 20,500 | ||||||
343 | Lear Corp.(a) | 47,770 | ||||||
388 | Magna International, Inc.(a) | 19,283 | ||||||
|
| |||||||
113,212 | ||||||||
|
| |||||||
Automobiles — 0.3% |
| |||||||
3,482 | General Motors Co.(a) | 134,162 | ||||||
81 | Tesla, Inc.(a)(b) | 18,100 | ||||||
|
| |||||||
152,262 | ||||||||
|
| |||||||
Banks — 5.7% |
| |||||||
26,789 | Bank of America Corp.(a) | 776,881 | ||||||
3,926 | Citigroup, Inc.(a) | 274,938 | ||||||
1,199 | Comerica, Inc.(a) | 87,095 | ||||||
762 | East West Bancorp, Inc.(a) | 35,639 | ||||||
5,502 | Fifth Third Bancorp(a) | 153,506 | ||||||
1,069 | First Republic Bank(a) | 104,388 | ||||||
6,831 | Huntington Bancshares, Inc.(a) | 94,404 | ||||||
9,721 | JPMorgan Chase & Co.(a) | 1,086,808 | ||||||
2,200 | SunTrust Banks, Inc.(a) | 138,270 | ||||||
284 | SVB Financial Group(a)(b) | 63,783 | ||||||
10,719 | Wells Fargo & Co.(a) | 507,223 | ||||||
|
| |||||||
3,322,935 | ||||||||
|
| |||||||
Beverages — 2.0% |
| |||||||
11,495 | Coca-Cola Co. (The)(a) | 585,326 | ||||||
4,325 | PepsiCo, Inc.(a) | 567,137 | ||||||
|
| |||||||
1,152,463 | ||||||||
|
|
See accompanying notes to financial statements.
25 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Biotechnology — 2.3% |
| |||||||
3,685 | AbbVie, Inc.(a) | $ | 267,973 | |||||
761 | Alexion Pharmaceuticals, Inc.(a)(b) | 99,676 | ||||||
128 | Alnylam Pharmaceuticals, Inc.(a)(b) | 9,288 | ||||||
1,902 | Amgen, Inc.(a) | 350,501 | ||||||
649 | Biogen, Inc.(a)(b) | 151,782 | ||||||
2,228 | Celgene Corp.(a)(b) | 205,956 | ||||||
3,673 | Gilead Sciences, Inc.(a) | 248,148 | ||||||
221 | Seattle Genetics, Inc.(a)(b) | 15,295 | ||||||
|
| |||||||
1,348,619 | ||||||||
|
| |||||||
Building Products — 0.6% |
| |||||||
1,115 | A.O. Smith Corp.(a) | 52,584 | ||||||
1,240 | Fortune Brands Home & Security, Inc.(a) | 70,841 | ||||||
4,110 | Johnson Controls International PLC(a) | 169,784 | ||||||
203 | Lennox International, Inc.(a) | 55,825 | ||||||
361 | Resideo Technologies, Inc.(a)(b) | 7,913 | ||||||
|
| |||||||
356,947 | ||||||||
|
| |||||||
Capital Markets — 2.0% |
| |||||||
2,815 | Bank of New York Mellon Corp. (The)(a) | 124,282 | ||||||
424 | BlackRock, Inc.(a) | 198,983 | ||||||
4,008 | Charles Schwab Corp. (The)(a) | 161,081 | ||||||
55 | FactSet Research Systems, Inc.(a) | 15,761 | ||||||
1,192 | Goldman Sachs Group, Inc. (The)(a) | 243,883 | ||||||
5,055 | Morgan Stanley(a) | 221,460 | ||||||
429 | MSCI, Inc.(a) | 102,441 | ||||||
685 | Raymond James Financial, Inc.(a) | 57,917 | ||||||
538 | TD Ameritrade Holding Corp. | 26,857 | ||||||
|
| |||||||
1,152,665 | ||||||||
|
| |||||||
Chemicals — 1.9% |
| |||||||
342 | AdvanSix, Inc.(a)(b) | 8,355 | ||||||
1,171 | Air Products & Chemicals, Inc.(a) | 265,079 | ||||||
570 | Albemarle Corp.(a) | 40,134 | ||||||
309 | Ashland Global Holdings, Inc.(a) | 24,711 | ||||||
712 | Celanese Corp., Series A(a) | 76,754 | ||||||
624 | Chemours Co. (The)(a) | 14,976 | ||||||
2,051 | Huntsman Corp.(a) | 41,922 | ||||||
519 | International Flavors & Fragrances, Inc.(a) | 75,302 | ||||||
1,725 | Linde PLC(a) | 346,380 | ||||||
1,059 | PPG Industries, Inc.(a) | 123,596 | ||||||
931 | RPM International, Inc.(a) | 56,893 | ||||||
2,145 | Valvoline, Inc.(a) | 41,892 | ||||||
|
| |||||||
1,115,994 | ||||||||
|
| |||||||
Commercial Services & Supplies — 0.5% |
| |||||||
226 | Waste Connections, Inc.(a) | 21,601 | ||||||
2,186 | Waste Management, Inc.(a) | 252,199 | ||||||
|
| |||||||
273,800 | ||||||||
|
|
See accompanying notes to financial statements.
| 26
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Communications Equipment — 1.3% |
| |||||||
203 | Arista Networks, Inc.(a)(b) | $ | 52,703 | |||||
520 | Ciena Corp.(a)(b) | 21,387 | ||||||
12,752 | Cisco Systems, Inc.(a) | 697,917 | ||||||
|
| |||||||
772,007 | ||||||||
|
| |||||||
Consumer Finance — 1.0% |
| |||||||
2,148 | Ally Financial, Inc.(a) | 66,567 | ||||||
2,518 | American Express Co.(a) | 310,822 | ||||||
1,537 | Capital One Financial Corp.(a) | 139,467 | ||||||
2,453 | Synchrony Financial(a) | 85,045 | ||||||
|
| |||||||
601,901 | ||||||||
|
| |||||||
Containers & Packaging — 0.3% |
| |||||||
938 | Crown Holdings, Inc.(a)(b) | 57,312 | ||||||
1,805 | International Paper Co.(a) | 78,193 | ||||||
426 | Packaging Corp. of America(a) | 40,606 | ||||||
|
| |||||||
176,111 | ||||||||
|
| |||||||
Diversified Financial Services — 1.9% |
| |||||||
5,069 | Berkshire Hathaway, Inc., Class B(a)(b) | 1,080,559 | ||||||
|
| |||||||
Diversified Telecommunication Services — 2.1% |
| |||||||
17,979 | AT&T, Inc.(a) | 602,476 | ||||||
158 | GCI Liberty, Inc., Class A(a)(b) | 9,711 | ||||||
10,569 | Verizon Communications, Inc.(a) | 603,807 | ||||||
|
| |||||||
1,215,994 | ||||||||
|
| |||||||
Electric Utilities — 1.9% |
| |||||||
6,859 | Alliant Energy Corp.(a) | 336,640 | ||||||
3,734 | American Electric Power Co., Inc.(a) | 328,629 | ||||||
2,842 | Evergy, Inc.(a) | 170,946 | ||||||
2,492 | OGE Energy Corp.(a) | 106,060 | ||||||
3,216 | Southern Co. (The)(a) | 177,780 | ||||||
|
| |||||||
1,120,055 | ||||||||
|
| |||||||
Electrical Equipment — 0.5% |
| |||||||
72 | Acuity Brands, Inc.(a) | 9,930 | ||||||
2,795 | Emerson Electric Co.(a) | 186,482 | ||||||
403 | Hubbell, Inc.(a) | 52,551 | ||||||
844 | Sensata Technologies Holding PLC(a)(b) | 41,356 | ||||||
|
| |||||||
290,319 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components — 0.3% |
| |||||||
336 | Arrow Electronics, Inc.(a)(b) | 23,947 | ||||||
565 | Avnet, Inc.(a) | 25,578 | ||||||
360 | CDW Corp.(a) | 39,960 | ||||||
4,536 | Flex Ltd.(a)(b) | 43,410 | ||||||
468 | Trimble, Inc.(a)(b) | 21,111 | ||||||
152 | Zebra Technologies Corp., Class A(a)(b) | 31,842 | ||||||
|
| |||||||
185,848 | ||||||||
|
|
See accompanying notes to financial statements.
27 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Energy Equipment & Services — 0.5% |
| |||||||
238 | KLX Energy Services Holdings, Inc.(a)(b) | $ | 4,862 | |||||
2,897 | McDermott International, Inc.(a)(b) | 27,985 | ||||||
3,553 | National Oilwell Varco, Inc.(a) | 78,983 | ||||||
2,154 | Oceaneering International, Inc.(a)(b) | 43,920 | ||||||
2,551 | Schlumberger Ltd.(a) | 101,377 | ||||||
6,426 | Transocean Ltd.(a)(b) | 41,191 | ||||||
|
| |||||||
298,318 | ||||||||
|
| |||||||
Entertainment — 2.6% |
| |||||||
1,995 | Activision Blizzard, Inc.(a) | 94,164 | ||||||
361 | Live Nation Entertainment, Inc.(a)(b) | 23,916 | ||||||
81 | Madison Square Garden Co. (The), Class A(a)(b) | 22,675 | ||||||
1,199 | Netflix, Inc.(a)(b) | 440,417 | ||||||
344 | Take-Two Interactive Software, Inc.(a)(b) | 39,055 | ||||||
6,319 | Walt Disney Co. (The)(a) | 882,385 | ||||||
|
| |||||||
1,502,612 | ||||||||
|
| |||||||
Food & Staples Retailing — 1.8% |
| |||||||
951 | Costco Wholesale Corp.(a) | 251,311 | ||||||
1,865 | Sysco Corp.(a) | 131,893 | ||||||
2,909 | Walgreens Boots Alliance, Inc.(a) | 159,035 | ||||||
4,390 | Walmart, Inc.(a) | 485,051 | ||||||
|
| |||||||
1,027,290 | ||||||||
|
| |||||||
Food Products — 1.0% |
| |||||||
493 | Bunge Ltd.(a) | 27,465 | ||||||
885 | Hain Celestial Group, Inc. (The)(a)(b) | 19,382 | ||||||
304 | Ingredion, Inc.(a) | 25,077 | ||||||
1,635 | Kellogg Co.(a) | 87,587 | ||||||
6,322 | Mondelez International, Inc., Class A(a) | 340,756 | ||||||
366 | Post Holdings, Inc.(a)(b) | 38,053 | ||||||
402 | TreeHouse Foods, Inc.(a)(b) | 21,748 | ||||||
|
| |||||||
560,068 | ||||||||
|
| |||||||
Gas Utilities — 0.3% |
| |||||||
1,342 | Atmos Energy Corp.(a) | 141,662 | ||||||
1,071 | UGI Corp.(a) | 57,202 | ||||||
|
| |||||||
198,864 | ||||||||
|
| |||||||
Health Care Equipment & Supplies — 3.4% |
| |||||||
5,955 | Abbott Laboratories(a) | 500,815 | ||||||
356 | Align Technology, Inc.(a)(b) | 97,437 | ||||||
336 | Cooper Cos., Inc. (The)(a) | 113,195 | ||||||
1,193 | DENTSPLY SIRONA, Inc.(a) | 69,623 | ||||||
133 | DexCom, Inc.(a)(b) | 19,929 | ||||||
621 | Hill-Rom Holdings, Inc.(a) | 64,969 | ||||||
2,065 | Hologic, Inc.(a)(b) | 99,161 | ||||||
532 | IDEXX Laboratories, Inc.(a)(b) | 146,476 | ||||||
5,409 | Medtronic PLC(a) | 526,783 | ||||||
1,010 | ResMed, Inc.(a) | 123,250 |
See accompanying notes to financial statements.
| 28
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Health Care Equipment & Supplies — continued |
| |||||||
704 | STERIS PLC(a) | $ | 104,812 | |||||
238 | Teleflex, Inc.(a) | 78,814 | ||||||
|
| |||||||
1,945,264 | ||||||||
|
| |||||||
Health Care Providers & Services — 2.2% |
| |||||||
741 | Anthem, Inc.(a) | 209,118 | ||||||
1,510 | Centene Corp.(a)(b) | 79,184 | ||||||
1,351 | Cigna Corp.(a) | 212,850 | ||||||
3,125 | MEDNAX, Inc.(a)(b) | 78,844 | ||||||
90 | Molina Healthcare, Inc.(a)(b) | 12,883 | ||||||
2,683 | UnitedHealth Group, Inc.(a) | 654,679 | ||||||
164 | WellCare Health Plans, Inc.(a)(b) | 46,751 | ||||||
|
| |||||||
1,294,309 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure — 2.1% |
| |||||||
68 | Domino’s Pizza, Inc. | 18,923 | ||||||
193 | Dunkin’ Brands Group, Inc.(a) | 15,374 | ||||||
304 | Hilton Grand Vacations, Inc.(a)(b) | 9,673 | ||||||
777 | Hilton Worldwide Holdings, Inc.(a) | 75,944 | ||||||
1,339 | Las Vegas Sands Corp.(a) | 79,122 | ||||||
2,128 | McDonald’s Corp.(a) | 441,901 | ||||||
1,070 | Melco Resorts & Entertainment Ltd., Sponsored ADR(a) | 23,240 | ||||||
1,626 | MGM Resorts International(a) | 46,455 | ||||||
3,772 | Starbucks Corp.(a) | 316,207 | ||||||
137 | Vail Resorts, Inc.(a) | 30,568 | ||||||
157 | Yum China Holdings, Inc.(a) | 7,253 | ||||||
1,290 | Yum! Brands, Inc.(a) | 142,764 | ||||||
|
| |||||||
1,207,424 | ||||||||
|
| |||||||
Household Durables — 0.3% |
| |||||||
1,546 | Leggett & Platt, Inc.(a) | 59,320 | ||||||
9 | NVR, Inc.(a)(b) | 30,332 | ||||||
2,218 | Toll Brothers, Inc.(a) | 81,223 | ||||||
|
| |||||||
170,875 | ||||||||
|
| |||||||
Household Products — 1.9% |
| |||||||
1,103 | Church & Dwight Co., Inc.(a) | 80,585 | ||||||
570 | Clorox Co. (The)(a) | 87,273 | ||||||
1,212 | Kimberly-Clark Corp.(a) | 161,535 | ||||||
7,295 | Procter & Gamble Co. (The)(a) | 799,897 | ||||||
|
| |||||||
1,129,290 | ||||||||
|
| |||||||
Industrial Conglomerates — 1.6% |
| |||||||
1,356 | 3M Co.(a) | 235,049 | ||||||
21,979 | General Electric Co.(a) | 230,780 | ||||||
2,682 | Honeywell International, Inc.(a) | 468,250 | ||||||
|
| |||||||
934,079 | ||||||||
|
| |||||||
Insurance — 2.1% |
| |||||||
834 | American Financial Group, Inc.(a) | 85,460 | ||||||
1,581 | Arch Capital Group Ltd.(a)(b) | 58,624 |
See accompanying notes to financial statements.
29 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Insurance — continued |
| |||||||
2,336 | Chubb Ltd.(a) | $ | 344,069 | |||||
438 | Cincinnati Financial Corp.(a) | 45,408 | ||||||
2,121 | Lincoln National Corp.(a) | 136,698 | ||||||
977 | Manulife Financial Corp.(a) | 17,762 | ||||||
2,816 | Prudential Financial, Inc.(a) | 284,416 | ||||||
301 | RenaissanceRe Holdings Ltd.(a) | 53,581 | ||||||
878 | Willis Towers Watson PLC(a) | 168,172 | ||||||
|
| |||||||
1,194,190 | ||||||||
|
| |||||||
Interactive Media & Services — 4.8% |
| |||||||
470 | Alphabet, Inc., Class A(a)(b) | 508,916 | ||||||
1,017 | Alphabet, Inc., Class C(a)(b) | 1,099,286 | ||||||
6,036 | Facebook, Inc., Class A(a)(b) | 1,164,948 | ||||||
|
| |||||||
2,773,150 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail — 3.9% |
| |||||||
1,051 | Amazon.com, Inc.(a)(b) | 1,990,205 | ||||||
132 | Booking Holdings, Inc.(a)(b) | 247,462 | ||||||
10 | MercadoLibre, Inc.(a)(b) | 6,118 | ||||||
237 | Qurate Retail, Inc., Class A(a)(b) | 2,936 | ||||||
|
| |||||||
2,246,721 | ||||||||
|
| |||||||
IT Services — 4.9% |
| |||||||
2,134 | Accenture PLC, Class A(a) | 394,299 | ||||||
373 | FleetCor Technologies, Inc.(a)(b) | 104,757 | ||||||
784 | Global Payments, Inc.(a) | 125,542 | ||||||
2,575 | International Business Machines Corp.(a) | 355,092 | ||||||
289 | Leidos Holdings, Inc.(a) | 23,077 | ||||||
3,073 | MasterCard, Inc., Class A(a) | 812,901 | ||||||
5,825 | Visa, Inc., Class A(a) | 1,010,929 | ||||||
|
| |||||||
2,826,597 | ||||||||
|
| |||||||
Leisure Products — 0.1% |
| |||||||
590 | Brunswick Corp.(a) | 27,075 | ||||||
345 | Polaris Industries, Inc.(a) | 31,474 | ||||||
|
| |||||||
58,549 | ||||||||
|
| |||||||
Life Sciences Tools & Services — 1.0% |
| |||||||
48 | Bio-Rad Laboratories, Inc., Class A(a)(b) | 15,004 | ||||||
500 | Illumina, Inc.(a)(b) | 184,075 | ||||||
149 | PRA Health Sciences, Inc.(a)(b) | 14,774 | ||||||
1,269 | Thermo Fisher Scientific, Inc.(a) | 372,680 | ||||||
|
| |||||||
586,533 | ||||||||
|
| |||||||
Machinery — 1.3% |
| |||||||
471 | AGCO Corp.(a) | 36,535 | ||||||
1,987 | Caterpillar, Inc.(a) | 270,808 | ||||||
822 | Cummins, Inc.(a) | 140,842 | ||||||
700 | Deere & Co.(a) | 115,997 | ||||||
757 | IDEX Corp.(a) | 130,310 | ||||||
208 | WABCO Holdings, Inc.(a)(b) | 27,581 |
See accompanying notes to financial statements.
| 30
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Machinery — continued |
| |||||||
465 | Wabtec Corp.(a) | $ | 33,368 | |||||
|
| |||||||
755,441 | ||||||||
|
| |||||||
Media — 1.1% |
| |||||||
576 | AMC Networks, Inc., Class A(a)(b) | 31,386 | ||||||
12,770 | Comcast Corp., Class A(a) | 539,916 | ||||||
1,489 | Fox Corp., Class A(a) | 54,557 | ||||||
7,032 | Sirius XM Holdings, Inc.(a) | 39,238 | ||||||
|
| |||||||
665,097 | ||||||||
|
| |||||||
Metals & Mining — 0.3% |
| |||||||
839 | Alcoa Corp.(a)(b) | 19,641 | ||||||
3,371 | Barrick Gold Corp.(a) | 53,161 | ||||||
316 | Rio Tinto PLC, Sponsored ADR(a) | 19,699 | ||||||
590 | Southern Copper Corp.(a) | 22,921 | ||||||
833 | Steel Dynamics, Inc.(a) | 25,157 | ||||||
1,375 | Vale S.A., Sponsored ADR(a) | 18,480 | ||||||
|
| |||||||
159,059 | ||||||||
|
| |||||||
Multi-Utilities — 0.4% |
| |||||||
4,371 | Public Service Enterprise Group, Inc.(a) | 257,102 | ||||||
|
| |||||||
Multiline Retail — 0.2% |
| |||||||
3,313 | Macy’s, Inc.(a) | 71,097 | ||||||
2,192 | Nordstrom, Inc.(a) | 69,837 | ||||||
|
| |||||||
140,934 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels — 4.7% |
| |||||||
778 | Canadian Natural Resources Ltd.(a) | 20,983 | ||||||
1,061 | Cheniere Energy, Inc.(a)(b) | 72,626 | ||||||
5,398 | Chevron Corp.(a) | 671,727 | ||||||
1,031 | Concho Resources, Inc.(a) | 106,379 | ||||||
529 | Continental Resources, Inc.(a)(b) | 22,266 | ||||||
519 | Diamondback Energy, Inc.(a) | 56,555 | ||||||
6,360 | Encana Corp.(a) | 32,627 | ||||||
1,090 | EQT Corp.(a) | 17,233 | ||||||
858 | Equitrans Midstream Corp.(a) | 16,911 | ||||||
11,335 | Exxon Mobil Corp.(a) | 868,601 | ||||||
1,235 | HollyFrontier Corp.(a) | 57,156 | ||||||
1,781 | Noble Energy, Inc.(a) | 39,894 | ||||||
3,825 | Occidental Petroleum Corp.(a) | 192,321 | ||||||
2,445 | Phillips 66(a) | 228,705 | ||||||
1,099 | Pioneer Natural Resources Co.(a) | 169,092 | ||||||
962 | Suncor Energy, Inc.(a) | 29,976 | ||||||
828 | Targa Resources Corp.(a) | 32,507 | ||||||
1,144 | Whiting Petroleum Corp.(a)(b) | 21,370 | ||||||
4,730 | WPX Energy, Inc.(a)(b) | 54,442 | ||||||
|
| |||||||
2,711,371 | ||||||||
|
| |||||||
Pharmaceuticals — 5.0% |
| |||||||
898 | Allergan PLC(a) | 150,352 |
See accompanying notes to financial statements.
31 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Pharmaceuticals — continued |
| |||||||
4,588 | Bristol-Myers Squibb Co.(a) | $ | 208,066 | |||||
2,604 | Eli Lilly & Co.(a) | 288,497 | ||||||
211 | Jazz Pharmaceuticals PLC(a)(b) | 30,080 | ||||||
6,899 | Johnson & Johnson(a) | 960,893 | ||||||
6,813 | Merck & Co., Inc.(a) | 571,270 | ||||||
15,090 | Pfizer, Inc.(a) | 653,699 | ||||||
931 | Teva Pharmaceutical Industries Ltd., Sponsored ADR(a)(b) | 8,593 | ||||||
|
| |||||||
2,871,450 | ||||||||
|
| |||||||
Professional Services — 0.5% |
| |||||||
107 | CoStar Group, Inc.(a)(b) | 59,284 | ||||||
502 | ManpowerGroup, Inc.(a) | 48,493 | ||||||
676 | TransUnion(a) | 49,693 | ||||||
998 | Verisk Analytics, Inc.(a) | 146,167 | ||||||
|
| |||||||
303,637 | ||||||||
|
| |||||||
Real Estate Management & Development — 0.0% |
| |||||||
176 | Jones Lang LaSalle, Inc.(a) | 24,761 | ||||||
|
| |||||||
REITs – Apartments — 1.0% |
| |||||||
1,056 | American Campus Communities, Inc.(a) | 48,745 | ||||||
836 | Camden Property Trust(a) | 87,270 | ||||||
558 | Essex Property Trust, Inc.(a) | 162,897 | ||||||
705 | Mid-America Apartment Communities, Inc.(a) | 83,021 | ||||||
3,890 | UDR, Inc.(a) | 174,622 | ||||||
|
| |||||||
556,555 | ||||||||
|
| |||||||
REITs – Diversified — 1.2% |
| |||||||
1,526 | Crown Castle International Corp.(a) | 198,914 | ||||||
980 | Digital Realty Trust, Inc.(a) | 115,434 | ||||||
5,114 | Duke Realty Corp.(a) | 161,654 | ||||||
959 | Gaming and Leisure Properties, Inc.(a) | 37,382 | ||||||
540 | SBA Communications Corp.(a)(b) | 121,414 | ||||||
846 | VICI Properties, Inc.(a) | 18,646 | ||||||
791 | W.P. Carey, Inc.(a) | 64,213 | ||||||
|
| |||||||
717,657 | ||||||||
|
| |||||||
REITs – Health Care — 0.1% |
| |||||||
2,686 | Medical Properties Trust, Inc.(a) | 46,844 | ||||||
|
| |||||||
REITs – Hotels — 0.0% |
| |||||||
672 | Park Hotels & Resorts, Inc.(a) | 18,520 | ||||||
|
| |||||||
REITs – Mortgage — 0.1% |
| |||||||
3,926 | Annaly Capital Management, Inc.(a) | 35,844 | ||||||
|
| |||||||
REITs – Office Property — 0.1% |
| |||||||
1,073 | Kilroy Realty Corp.(a) | 79,198 | ||||||
|
| |||||||
REITs – Shopping Centers — 0.1% |
| |||||||
747 | Regency Centers Corp.(a) | 49,855 | ||||||
|
| |||||||
REITs – Single Tenant — 0.4% |
| |||||||
945 | National Retail Properties, Inc.(a) | 50,094 |
See accompanying notes to financial statements.
| 32
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
REITs – Single Tenant — continued |
| |||||||
2,401 | Realty Income Corp.(a) | $ | 165,597 | |||||
|
| |||||||
215,691 | ||||||||
|
| |||||||
REITs – Storage — 0.2% |
| |||||||
984 | Extra Space Storage, Inc.(a) | 104,402 | ||||||
|
| |||||||
REITs – Warehouse/Industrials — 0.1% |
| |||||||
983 | Liberty Property Trust(a) | 49,189 | ||||||
|
| |||||||
Road & Rail — 1.2% |
| |||||||
1,072 | Norfolk Southern Corp.(a) | 213,682 | ||||||
93 | Old Dominion Freight Line, Inc.(a) | 13,881 | ||||||
2,589 | Union Pacific Corp.(a) | 437,826 | ||||||
|
| |||||||
665,389 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment — 3.7% |
| |||||||
2,126 | Advanced Micro Devices, Inc.(a)(b) | 64,567 | ||||||
4,707 | Applied Materials, Inc.(a) | 211,391 | ||||||
104 | ASML Holding NV, (Registered)(a) | 21,625 | ||||||
377 | First Solar, Inc.(a)(b) | 24,761 | ||||||
12,024 | Intel Corp.(a) | 575,589 | ||||||
2,446 | Marvell Technology Group Ltd.(a) | 58,386 | ||||||
2,524 | Maxim Integrated Products, Inc.(a) | 150,986 | ||||||
1,798 | NVIDIA Corp.(a) | 295,285 | ||||||
700 | NXP Semiconductors NV(a) | 68,327 | ||||||
1,366 | ON Semiconductor Corp.(a)(b) | 27,607 | ||||||
3,327 | QUALCOMM, Inc.(a) | 253,085 | ||||||
664 | Teradyne, Inc.(a) | 31,812 | ||||||
3,085 | Texas Instruments, Inc.(a) | 354,035 | ||||||
402 | Versum Materials, Inc.(a) | 20,735 | ||||||
|
| |||||||
2,158,191 | ||||||||
|
| |||||||
Software — 7.2% |
| |||||||
1,595 | Adobe, Inc.(a)(b) | 469,967 | ||||||
979 | Cadence Design Systems, Inc.(a)(b) | 69,323 | ||||||
261 | CDK Global, Inc.(a) | 12,904 | ||||||
133 | Check Point Software Technologies Ltd.(a)(b) | 15,376 | ||||||
941 | Fortinet, Inc.(a)(b) | 72,297 | ||||||
18,923 | Microsoft Corp.(a) | 2,534,925 | ||||||
7,065 | Oracle Corp.(a) | 402,493 | ||||||
165 | Palo Alto Networks, Inc.(a)(b) | 33,620 | ||||||
356 | PTC, Inc.(a)(b) | 31,955 | ||||||
2,803 | salesforce.com, inc.(a)(b) | 425,299 | ||||||
19 | ServiceNow, Inc.(a)(b) | 5,217 | ||||||
251 | SS&C Technologies Holdings, Inc.(a) | 14,460 | ||||||
745 | Synopsys, Inc.(a)(b) | 95,874 | ||||||
|
| |||||||
4,183,710 | ||||||||
|
| |||||||
Specialty Retail — 2.3% |
| |||||||
630 | Advance Auto Parts, Inc.(a) | 97,108 | ||||||
730 | Burlington Stores, Inc.(a)(b) | 124,210 | ||||||
1,011 | Dick’s Sporting Goods, Inc.(a) | 35,011 |
See accompanying notes to financial statements.
33 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Shares | Description | Value (†) | ||||||
Specialty Retail — continued |
| |||||||
1,010 | Foot Locker, Inc.(a) | $ | 42,339 | |||||
4,428 | Home Depot, Inc. (The)(a) | 920,891 | ||||||
296 | Ulta Beauty, Inc.(a)(b) | 102,679 | ||||||
583 | Williams-Sonoma, Inc.(a) | 37,895 | ||||||
|
| |||||||
1,360,133 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals — 4.1% |
| |||||||
10,973 | Apple, Inc.(a) | 2,171,776 | ||||||
346 | Dell Technologies, Inc., Class C(a)(b) | 17,577 | ||||||
3,492 | Hewlett Packard Enterprise Co.(a) | 52,206 | ||||||
7,665 | HP, Inc.(a) | 159,355 | ||||||
|
| |||||||
2,400,914 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods — 1.0% |
| |||||||
344 | Carter’s, Inc.(a) | 33,554 | ||||||
3,001 | Hanesbrands, Inc.(a) | 51,677 | ||||||
344 | Lululemon Athletica, Inc.(a)(b) | 61,992 | ||||||
4,513 | NIKE, Inc., Class B(a) | 378,866 | ||||||
762 | Skechers U.S.A., Inc., Class A(a)(b) | 23,996 | ||||||
|
| |||||||
550,085 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance — 0.1% |
| |||||||
2,930 | New York Community Bancorp, Inc.(a) | 29,241 | ||||||
|
| |||||||
Tobacco — 1.0% |
| |||||||
4,572 | Altria Group, Inc.(a) | 216,484 | ||||||
206 | British American Tobacco PLC, Sponsored ADR(a) | 7,183 | ||||||
4,390 | Philip Morris International, Inc.(a) | 344,747 | ||||||
|
| |||||||
568,414 | ||||||||
|
| |||||||
Water Utilities — 0.4% |
| |||||||
2,093 | American Water Works Co., Inc.(a) | 242,788 | ||||||
|
| |||||||
Wireless Telecommunication Services — 0.0% |
| |||||||
1,378 | Sprint Corp.(a)(b) | 9,053 | ||||||
|
| |||||||
Total Common Stocks (Identified Cost $38,299,191) | 58,424,426 | |||||||
|
| |||||||
Principal Amount | ||||||||
Short-Term Investments — 1.3% | ||||||||
$ | 777,474 | Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/28/2019 at 1.500% to be repurchased at $777,571 on 7/01/2019 collateralized by $765,000 U.S. Treasury Note, 2.500% due 5/15/2024 valued at $793,352 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $777,474) | 777,474 | |||||
|
| |||||||
Total Investments — 102.0% (Identified Cost $39,076,665) | 59,201,900 | |||||||
Other assets less liabilities — (2.0)% | (1,163,334 | ) | ||||||
|
| |||||||
Net Assets — 100.0% | $ | 58,038,566 | ||||||
|
|
See accompanying notes to financial statements.
| 34
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Written Options — (2.2%) |
| |||||||||||||||||||||||
Description | Expiration Date | Exercise Price | Contracts | Notional Amount | Premiums (Received) | Value (†) | ||||||||||||||||||
Index Options — (2.2%) |
| |||||||||||||||||||||||
S&P 500® Index, Call | 7/19/2019 | 2,900 | (22 | ) | $ | (6,471,872 | ) | $ | (171,966 | ) | $ | (142,120 | ) | |||||||||||
S&P 500® Index, Call | 7/19/2019 | 2,925 | (44 | ) | (12,943,744 | ) | (186,890 | ) | (205,700 | ) | ||||||||||||||
S&P 500® Index, Call | 7/19/2019 | 2,950 | (22 | ) | (6,471,872 | ) | (136,345 | ) | (69,410 | ) | ||||||||||||||
S&P 500® Index, Call | 8/16/2019 | 2,850 | (21 | ) | (6,177,696 | ) | (207,848 | ) | (257,670 | ) | ||||||||||||||
S&P 500® Index, Call | 8/16/2019 | 2,900 | (22 | ) | (6,471,872 | ) | (140,525 | ) | (186,780 | ) | ||||||||||||||
S&P 500® Index, Call | 8/16/2019 | 2,925 | (22 | ) | (6,471,872 | ) | (169,345 | ) | (149,270 | ) | ||||||||||||||
S&P 500® Index, Call | 8/16/2019 | 2,975 | (22 | ) | (6,471,872 | ) | (106,951 | ) | (85,360 | ) | ||||||||||||||
S&P 500® Index, Call | 9/20/2019 | 2,925 | (22 | ) | (6,471,872 | ) | (217,745 | ) | (194,920 | ) | ||||||||||||||
|
|
|
| |||||||||||||||||||||
Total | $ | (1,337,615 | ) | $ | (1,291,230 | ) | ||||||||||||||||||
|
|
|
|
(†) | 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.
35 |
Portfolio of Investments – as of June 30, 2019 (Unaudited)
Gateway Equity Call Premium Fund – (continued)
Industry Summary at June 30, 2019 (Unaudited)
Software | 7.2 | % | ||
Banks | 5.7 | |||
Pharmaceuticals | 5.0 | |||
IT Services | 4.9 | |||
Interactive Media & Services | 4.8 | |||
Oil, Gas & Consumable Fuels | 4.7 | |||
Technology Hardware, Storage & Peripherals | 4.1 | |||
Internet & Direct Marketing Retail | 3.9 | |||
Semiconductors & Semiconductor Equipment | 3.7 | |||
Health Care Equipment & Supplies | 3.4 | |||
Aerospace & Defense | 2.7 | |||
Entertainment | 2.6 | |||
Specialty Retail | 2.3 | |||
Biotechnology | 2.3 | |||
Health Care Providers & Services | 2.2 | |||
Diversified Telecommunication Services | 2.1 | |||
Hotels, Restaurants & Leisure | 2.1 | |||
Insurance | 2.1 | |||
Capital Markets | 2.0 | |||
Beverages | 2.0 | |||
Other Investments, less than 2% each | 30.9 | |||
Short-Term Investments | 1.3 | |||
|
| |||
Total Investments | 102.0 | |||
Other assets less liabilities (including open written options) | (2.0 | ) | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
See accompanying notes to financial statements.
| 36
Statements of Assets and Liabilities
June 30, 2019 (Unaudited)
Gateway Fund | Gateway Equity Call Premium Fund | |||||||
ASSETS |
| |||||||
Investments at cost | $ | 5,264,103,863 | $ | 39,076,665 | ||||
Net unrealized appreciation | 3,008,621,229 | 20,125,235 | ||||||
|
|
|
| |||||
Investments at value | 8,272,725,092 | 59,201,900 | ||||||
Cash | 406 | 133,861 | ||||||
Receivable for Fund shares sold | 10,758,695 | 84,569 | ||||||
Dividends and interest receivable | 6,420,935 | 47,859 | ||||||
Prepaid expenses (Note 8) | 946 | 7 | ||||||
|
|
|
| |||||
TOTAL ASSETS | 8,289,906,074 | 59,468,196 | ||||||
|
|
|
| |||||
LIABILITIES |
| |||||||
Options written, at value (premiums received $184,401,156 and $1,337,615, respectively) (Note 2) | 178,103,980 | 1,291,230 | ||||||
Payable for Fund shares redeemed | 6,489,713 | 18,776 | ||||||
Management fees payable (Note 6) | 3,788,701 | 26,576 | ||||||
Deferred Trustees’ fees (Note 6) | 783,682 | 35,710 | ||||||
Administrative fees payable (Note 6) | 287,198 | 2,038 | ||||||
Payable to distributor (Note 6d) | 58,276 | 239 | ||||||
Other accounts payable and accrued expenses | 465,584 | 55,061 | ||||||
|
|
|
| |||||
TOTAL LIABILITIES | 189,977,134 | 1,429,630 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 8,099,928,940 | $ | 58,038,566 | ||||
|
|
|
| |||||
NET ASSETS CONSIST OF: |
| |||||||
Paid-in capital | $ | 5,989,506,939 | $ | 43,033,298 | ||||
Accumulated earnings | 2,110,422,001 | 15,005,268 | ||||||
|
|
|
| |||||
NET ASSETS | $ | 8,099,928,940 | $ | 58,038,566 | ||||
|
|
|
|
See accompanying notes to financial statements.
37 |
Statements of Assets and Liabilities (continued)
June 30, 2019 (Unaudited)
Gateway Fund | Gateway Equity Call Premium Fund | |||||||
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE: |
| |||||||
Class A shares: |
| |||||||
Net assets | $ | 1,122,208,689 | $ | 2,246,901 | ||||
|
|
|
| |||||
Shares of beneficial interest | 33,711,959 | 182,613 | ||||||
|
|
|
| |||||
Net asset value and redemption price per share | $ | 33.29 | $ | 12.30 | ||||
|
|
|
| |||||
Offering price per share (100/94.25 of net asset value) (Note 1) | $ | 35.32 | $ | 13.05 | ||||
|
|
|
| |||||
Class C shares:(redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1) | ||||||||
Net assets | $ | 246,420,554 | $ | 771,631 | ||||
|
|
|
| |||||
Shares of beneficial interest | 7,435,794 | 62,919 | ||||||
|
|
|
| |||||
Net asset value and offering price per share | $ | 33.14 | $ | 12.26 | ||||
|
|
|
| |||||
Class N shares: |
| |||||||
Net assets | $ | 227,800,559 | $ | 1,113 | ||||
|
|
|
| |||||
Shares of beneficial interest | 6,846,135 | 91 | ||||||
|
|
|
| |||||
Net asset value, offering and redemption price per share | $ | 33.27 | $ | 12.29 | * | |||
|
|
|
| |||||
Class Y shares: |
| |||||||
Net assets | $ | 6,503,499,138 | $ | 55,018,921 | ||||
|
|
|
| |||||
Shares of beneficial interest | 195,476,570 | 4,473,484 | ||||||
|
|
|
| |||||
Net asset value, offering and redemption price per share | $ | 33.27 | $ | 12.30 | ||||
|
|
|
|
* | Net asset value calculations have been determined utilizing fractional share and penny amounts. |
See accompanying notes to financial statements.
| 38
Statements of Operations
For the Six Months Ended June 30, 2019 (Unaudited)
Gateway Fund | Gateway Equity Call Premium Fund | |||||||
INVESTMENT INCOME |
| |||||||
Interest | $ | 1,447,569 | $ | 17,676 | ||||
Dividends | 85,949,254 | 615,822 | ||||||
Less net foreign taxes withheld | (22,879 | ) | (1,810 | ) | ||||
|
|
|
| |||||
87,373,944 | 631,688 | |||||||
|
|
|
| |||||
Expenses |
| |||||||
Management fees (Note 6) | 25,634,867 | 198,179 | ||||||
Service and distribution fees (Note 6) | 2,726,248 | 7,072 | ||||||
Administrative fees (Note 6) | 1,806,222 | 13,550 | ||||||
Trustees’ fees and expenses (Note 6) | 153,594 | 10,924 | ||||||
Transfer agent fees and expenses (Notes 6 and 7) | 2,641,300 | 13,015 | ||||||
Audit and tax services fees | 26,035 | 25,338 | ||||||
Custodian fees and expenses | 122,076 | 54,736 | ||||||
Legal fees (Note 8) | 142,100 | 1,015 | ||||||
Registration fees | 139,777 | 32,784 | ||||||
Shareholder reporting expenses | 159,839 | 2,696 | ||||||
Miscellaneous expenses (Note 8) | 101,075 | 14,229 | ||||||
|
|
|
| |||||
Total expenses | 33,653,133 | 373,538 | ||||||
Less waiver and/or expense reimbursement (Note 6) | (2,573,991 | ) | (77,705 | ) | ||||
|
|
|
| |||||
Net expenses | 31,079,142 | 295,833 | ||||||
|
|
|
| |||||
Net investment income | 56,294,802 | 335,855 | ||||||
|
|
|
| |||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN AND FOREIGN CURRENCY TRANSACTIONS | ||||||||
Net realized gain (loss) on: |
| |||||||
Investments | (260,026,176 | ) | 1,150,500 | |||||
Options written | (563,361,424 | ) | (4,382,155 | ) | ||||
Foreign currency transactions (Note 2c) | 673 | (6 | ) | |||||
Net change in unrealized appreciation (depreciation) on: |
| |||||||
Investments | 1,254,812,161 | 8,640,429 | ||||||
Options written | (16,590,227 | ) | (22,954 | ) | ||||
Foreign currency translations (Note 2c) | 16 | 3 | ||||||
|
|
|
| |||||
Net realized and unrealized gain on investments, options written and foreign currency transactions | 414,835,023 | 5,385,817 | ||||||
|
|
|
| |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 471,129,825 | $ | 5,721,672 | ||||
|
|
|
|
See accompanying notes to financial statements.
39 |
Statements of Changes in Net Assets
Gateway Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
FROM OPERATIONS: |
| |||||||
Net investment income | $ | 56,294,802 | $ | 102,274,481 | ||||
Net realized gain (loss) on investments, options written and foreign currency transactions | (823,386,927 | ) | 180,061,620 | |||||
Net change in unrealized appreciation (depreciation) on investments, options written and foreign currency translations | 1,238,221,950 | (652,407,978 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 471,129,825 | (370,071,877 | ) | |||||
|
|
|
| |||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||
Class A | (6,789,695 | ) | (15,162,325 | ) | ||||
Class C | (561,434 | ) | (1,009,472 | ) | ||||
Class N | (1,612,764 | ) | (2,587,089 | ) | ||||
Class Y | (46,894,566 | ) | (89,468,438 | ) | ||||
|
|
|
| |||||
Total distributions | (55,858,459 | ) | (108,227,324 | ) | ||||
|
|
|
| |||||
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10) | (453,675,566 | ) | 91,566,609 | |||||
|
|
|
| |||||
Net decrease in net assets | (38,404,200 | ) | (386,732,592 | ) | ||||
NET ASSETS |
| |||||||
Beginning of the period | 8,138,333,140 | 8,525,065,732 | ||||||
|
|
|
| |||||
End of the period | $ | 8,099,928,940 | $ | 8,138,333,140 | ||||
|
|
|
|
See accompanying notes to financial statements.
| 40
Statements of Changes in Net Assets (continued)
Gateway Equity Call Premium Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
FROM OPERATIONS: |
| |||||||
Net investment income | $ | 335,855 | $ | 626,239 | ||||
Net realized gain (loss) on investments, options written and foreign currency transactions | (3,231,661 | ) | 6,989,047 | |||||
Net change in unrealized appreciation (depreciation) on investments, options written and foreign currency translations | 8,617,478 | (10,744,974 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 5,721,672 | (3,129,688 | ) | |||||
|
|
|
| |||||
FROM DISTRIBUTIONS TO SHAREHOLDERS: |
| |||||||
Class A | (10,173 | ) | (24,185 | ) | ||||
Class C | (961 | ) | (591 | ) | ||||
Class N | (7 | ) | (12 | ) | ||||
Class Y | (318,938 | ) | (593,036 | ) | ||||
|
|
|
| |||||
Total distributions | (330,079 | ) | (617,824 | ) | ||||
|
|
|
| |||||
NET DECREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 10) | (17,703,320 | ) | (6,890,884 | ) | ||||
|
|
|
| |||||
Net decrease in net assets | (12,311,727 | ) | (10,638,396 | ) | ||||
NET ASSETS |
| |||||||
Beginning of the period | 70,350,293 | 80,988,689 | ||||||
|
|
|
| |||||
End of the period | $ | 58,038,566 | $ | 70,350,293 | ||||
|
|
|
|
See accompanying notes to financial statements.
41 |
Financial Highlights
For a share outstanding throughout each period.
Gateway Fund—Class A | ||||||||||||||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||||||||||||
Net asset value, beginning of the period | $ | 31.65 | $ | 33.47 | $ | 30.84 | $ | 29.72 | $ | 29.58 | $ | 29.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(a) | 0.20 | 0.34 | 0.39 | 0.41 | 0.57 | (b) | 0.39 | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.64 | (1.80 | ) | 2.58 | 1.13 | 0.12 | 0.57 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from Investment Operations | 1.84 | (1.46 | ) | 2.97 | 1.54 | 0.69 | 0.96 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.36 | ) | (0.34 | ) | (0.42 | ) | (0.55 | ) | (0.38 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of the period | $ | 33.29 | $ | 31.65 | $ | 33.47 | $ | 30.84 | $ | 29.72 | $ | 29.58 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(c)(d) | 5.81 | %(e) | (4.39 | )% | 9.66 | % | 5.23 | % | 2.34 | % | 3.33 | % | ||||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 1,122,209 | $ | 1,177,641 | $ | 1,669,272 | $ | 1,755,576 | $ | 1,864,118 | $ | 1,976,457 | ||||||||||||
Net expenses(f) | 0.94 | %(g) | 0.94 | % | 0.94 | % | 0.94 | % | 0.94 | % | 0.94 | % | ||||||||||||
Gross expenses | 1.01 | %(g) | 1.01 | % | 1.02 | % | 1.02 | % | 1.01 | % | 1.02 | % | ||||||||||||
Net investment income | 1.21 | %(g) | 1.03 | % | 1.20 | % | 1.39 | % | 1.91 | %(b) | 1.33 | % | ||||||||||||
Portfolio turnover rate | 6 | % | 10 | % | 34 | % | 14 | % | 10 | % | 13 | % |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Includes anon-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.
| 42
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Fund—Class C | ||||||||||||||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||||||||||||
Net asset value, beginning of the period | $ | 31.50 | $ | 33.32 | $ | 30.72 | $ | 29.61 | $ | 29.48 | $ | 28.90 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(a) | 0.07 | 0.09 | 0.14 | 0.19 | 0.34 | (b) | 0.17 | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.64 | (1.80 | ) | 2.57 | 1.11 | 0.12 | 0.57 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from Investment Operations | 1.71 | (1.71 | ) | 2.71 | 1.30 | 0.46 | 0.74 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.11 | ) | (0.11 | ) | (0.19 | ) | (0.33 | ) | (0.16 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of the period | $ | 33.14 | $ | 31.50 | $ | 33.32 | $ | 30.72 | $ | 29.61 | $ | 29.48 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(c)(d) | 5.44 | %(e) | (5.15 | )% | 8.85 | % | 4.42 | % | 1.54 | % | 2.58 | % | ||||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 246,421 | $ | 272,904 | $ | 336,891 | $ | 366,584 | $ | 387,235 | $ | 353,339 | ||||||||||||
Net expenses(f) | 1.70 | %(g) | 1.70 | % | 1.70 | % | 1.70 | % | 1.70 | % | 1.70 | % | ||||||||||||
Gross expenses | 1.76 | %(g) | 1.76 | % | 1.77 | % | 1.77 | % | 1.76 | % | 1.77 | % | ||||||||||||
Net investment income | 0.45 | %(g) | 0.27 | % | 0.44 | % | 0.63 | % | 1.15 | %(b) | 0.57 | % | ||||||||||||
Portfolio turnover rate | 6 | % | 10 | % | 34 | % | 14 | % | 10 | % | 13 | % |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Includes anon-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.
43 |
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Fund—Class N | ||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Period Ended December 31, 2017* | ||||||||||
Net asset value, beginning of the period | $ | 31.63 | $ | 33.46 | $ | 31.89 | ||||||
|
|
|
|
|
| |||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.24 | 0.44 | 0.32 | |||||||||
Net realized and unrealized gain (loss) | 1.65 | (1.81 | ) | 1.56 | ||||||||
|
|
|
|
|
| |||||||
Total from Investment Operations | 1.89 | (1.37 | ) | 1.88 | ||||||||
|
|
|
|
|
| |||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||
Net investment income | (0.25 | ) | (0.46 | ) | (0.31 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of the period | $ | 33.27 | $ | 31.63 | $ | 33.46 | ||||||
|
|
|
|
|
| |||||||
Total return(b) | 5.97 | %(c) | (4.13 | )% | 5.93 | %(c) | ||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||
Net assets, end of the period (000’s) | $ | 227,801 | $ | 179,727 | $ | 126,262 | ||||||
Net expenses(d) | 0.65 | %(e) | 0.65 | % | 0.65 | %(e) | ||||||
Gross expenses | 0.70 | %(e) | 0.70 | % | 0.74 | %(e) | ||||||
Net investment income | 1.50 | %(e) | 1.32 | % | 1.42 | %(e) | ||||||
Portfolio turnover rate | 6 | % | 10 | % | 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.
| 44
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Fund—Class Y | ||||||||||||||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||||||||||||
Net asset value, beginning of the period | $ | 31.63 | $ | 33.46 | $ | 30.83 | $ | 29.71 | $ | 29.57 | $ | 28.99 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(a) | 0.24 | 0.43 | 0.47 | 0.49 | 0.64 | (b) | 0.46 | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.64 | (1.81 | ) | 2.58 | 1.12 | 0.12 | 0.57 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from Investment Operations | 1.88 | (1.38 | ) | 3.05 | 1.61 | 0.76 | 1.03 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||||||
Net investment income | (0.24 | ) | (0.45 | ) | (0.42 | ) | (0.49 | ) | (0.62 | ) | (0.45 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of the period | $ | 33.27 | $ | 31.63 | $ | 33.46 | $ | 30.83 | $ | 29.71 | $ | 29.57 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(c) | 5.94 | %(d) | (4.18 | )% | 9.93 | % | 5.48 | % | 2.59 | % | 3.58 | % | ||||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 6,503,499 | $ | 6,508,061 | $ | 6,392,640 | $ | 5,550,008 | $ | 6,012,987 | $ | 5,814,900 | ||||||||||||
Net expenses(e) | 0.70 | %(f) | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||||
Gross expenses | 0.76 | %(f) | 0.76 | % | 0.77 | % | 0.77 | % | 0.76 | % | 0.77 | % | ||||||||||||
Net investment income | 1.45 | %(f) | 1.28 | % | 1.44 | % | 1.63 | % | 2.16 | %(b) | 1.57 | % | ||||||||||||
Portfolio turnover rate | 6 | % | 10 | % | 34 | % | 14 | % | 10 | % | 13 | % |
(a) | Per share net investment income has been calculated using the average shares outstanding during the period. |
(b) | Includes anon-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.
45 |
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Equity Call Premium Fund—Class A | ||||||||||||||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | 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 | $ | 11.32 | $ | 12.08 | $ | 10.89 | $ | 10.22 | $ | 9.96 | $ | 10.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(a) | 0.05 | 0.09 | 0.10 | 0.11 | 0.15 | (b) | 0.02 | |||||||||||||||||
Net realized and unrealized gain (loss) | 0.99 | (0.76 | ) | 1.18 | 0.66 | 0.24 | (0.02 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from Investment Operations | 1.04 | (0.67 | ) | 1.28 | 0.77 | 0.39 | 0.00 | (c) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.09 | ) | (0.09 | ) | (0.10 | ) | (0.13 | ) | (0.04 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of the period | $ | 12.30 | $ | 11.32 | $ | 12.08 | $ | 10.89 | $ | 10.22 | $ | 9.96 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(d)(e) | 9.17 | %(f) | (5.60 | )% | 11.80 | % | 7.58 | % | 3.90 | % | 0.00 | %(f) | ||||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 2,247 | $ | 2,375 | $ | 7,085 | $ | 6,507 | $ | 3,855 | $ | 96 | ||||||||||||
Net expenses(g) | 1.20 | %(h) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | %(h) | ||||||||||||
Gross expenses | 1.45 | %(h) | 1.44 | % | 1.30 | % | 1.31 | % | 1.70 | % | 3.69 | %(h) | ||||||||||||
Net investment income | 0.89 | %(h) | 0.73 | % | 0.85 | % | 1.02 | % | 1.47 | %(b) | 0.84 | %(h) | ||||||||||||
Portfolio turnover rate | 14 | % | 58 | % | 19 | % | 24 | % | 38 | % | 7 | % |
* | From commencement of 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 anon-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.
| 46
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Equity Call Premium Fund—Class C | ||||||||||||||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | 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 | $ | 11.29 | $ | 12.05 | $ | 10.87 | $ | 10.22 | $ | 9.97 | $ | 10.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(a) | 0.01 | 0.00 | (b) | 0.01 | 0.02 | 0.09 | (c) | 0.00 | (b) | |||||||||||||||
Net realized and unrealized gain (loss) | 0.97 | (0.75 | ) | 1.18 | 0.68 | 0.22 | (0.01 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from Investment Operations | 0.98 | (0.75 | ) | 1.19 | 0.70 | 0.31 | (0.01 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||||||
Net investment income | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.05 | ) | (0.06 | ) | (0.02 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of the period | $ | 12.26 | $ | 11.29 | $ | 12.05 | $ | 10.87 | $ | 10.22 | $ | 9.97 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(d)(e) | 8.71 | %(f) | (6.24 | )% | 10.95 | % | 6.85 | % | 3.07 | % | (0.12 | )%(f) | ||||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 772 | $ | 849 | $ | 648 | $ | 524 | $ | 37 | $ | 1 | ||||||||||||
Net expenses(g) | 1.95 | %(h) | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | %(h) | ||||||||||||
Gross expenses | 2.20 | %(h) | 2.19 | % | 2.05 | % | 1.98 | % | 2.40 | % | 4.37 | %(h) | ||||||||||||
Net investment income | 0.14 | %(h) | 0.02 | % | 0.10 | % | 0.23 | % | 0.85 | %(c) | 0.01 | %(h) | ||||||||||||
Portfolio turnover rate | 14 | % | 58 | % | 19 | % | 24 | % | 38 | % | 7 | % |
* | From commencement of 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) | Amount rounds to less than $0.01 per share. |
(c) | Includes anon-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.
47 |
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Equity Call Premium Fund—Class N | ||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Period Ended December 31, 2017* | ||||||||||
Net asset value, beginning of the period | $ | 11.32 | $ | 12.09 | $ | 11.34 | ||||||
|
|
|
|
|
| |||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||
Net investment income(a) | 0.07 | 0.13 | 0.10 | |||||||||
Net realized and unrealized gain (loss) | 0.98 | (0.77 | ) | 0.75 | ||||||||
|
|
|
|
|
| |||||||
Total from Investment Operations | 1.05 | (0.64 | ) | 0.85 | ||||||||
|
|
|
|
|
| |||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||
Net investment income | (0.08 | ) | (0.13 | ) | (0.10 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of the period | $ | 12.29 | $ | 11.32 | $ | 12.09 | ||||||
|
|
|
|
|
| |||||||
Total return(b) | 9.24 | %(c) | (5.32 | )% | 7.50 | %(c) | ||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||
Net assets, end of the period (000’s) | $ | 1 | $ | 1 | $ | 1 | ||||||
Net expenses(d) | 0.90 | %(e) | 0.90 | % | 0.90 | %(e) | ||||||
Gross expenses | 13.98 | %(e) | 15.41 | % | 14.26 | %(e) | ||||||
Net investment income | 1.15 | %(e) | 1.04 | % | 1.22 | %(e) | ||||||
Portfolio turnover rate | 14 | % | 58 | % | 19 | %(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.
| 48
Financial Highlights (continued)
For a share outstanding throughout each period.
Gateway Equity Call Premium Fund—Class Y | ||||||||||||||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | 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 | $ | 11.32 | $ | 12.09 | $ | 10.89 | $ | 10.22 | $ | 9.97 | $ | 10.00 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
INCOME (LOSS) FROM INVESTMENT OPERATIONS: | ||||||||||||||||||||||||
Net investment income(a) | 0.07 | 0.12 | 0.13 | 0.13 | 0.16 | (b) | 0.02 | |||||||||||||||||
Net realized and unrealized gain (loss) | 0.98 | (0.76 | ) | 1.19 | 0.67 | 0.24 | (0.01 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from Investment Operations | 1.05 | (0.64 | ) | 1.32 | 0.80 | 0.40 | 0.01 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
LESS DISTRIBUTIONS FROM: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.13 | ) | (0.12 | ) | (0.13 | ) | (0.15 | ) | (0.04 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net asset value, end of the period | $ | 12.30 | $ | 11.32 | $ | 12.09 | $ | 10.89 | $ | 10.22 | $ | 9.97 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total return(c) | 9.30 | %(d) | (5.37 | )% | 12.21 | % | 7.83 | % | 4.03 | % | 0.13 | %(d) | ||||||||||||
RATIOS TO AVERAGE NET ASSETS: | ||||||||||||||||||||||||
Net assets, end of the period (000’s) | $ | 55,019 | $ | 67,125 | $ | 73,255 | $ | 63,578 | $ | 50,334 | $ | 20,815 | ||||||||||||
Net expenses(e) | 0.95 | %(f) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | %(f) | ||||||||||||
Gross expenses | 1.20 | %(f) | 1.19 | % | 1.05 | % | 1.06 | % | 1.45 | % | 3.54 | %(f) | ||||||||||||
Net investment income | 1.12 | %(f) | 1.01 | % | 1.10 | % | 1.27 | % | 1.59 | %(b) | 0.99 | %(f) | ||||||||||||
Portfolio turnover rate | 14 | % | 58 | % | 19 | % | 24 | % | 38 | % | 7 | % |
* | From commencement of 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 anon-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.
49 |
June 30, 2019 (Unaudited)
1. Organization. Gateway Trust (the “Trust”) is organized as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The 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 following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:
Gateway Fund
Gateway Equity Call Premium Fund
Each Fund is a diversified investment company.
Each Fund offers Class A, Class C, Class N and Class Y shares.
Class A shares are sold with a maximumfront-end sales charge of 5.75%. Class C shares do not pay afront-end sales charge, pay higher Rule12b-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 afront-end sales charge, a CDSC or Rule12b-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 bornepro rata by the holders of each class of shares, except that each class bears expenses unique to that class (such as the Rule12b-1 fees applicable to Class A and 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 Rule12b-1 Plan. Shares of each class would receive theirpro ratashare 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
| 50
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
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 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 pursuant to procedures approved by the Board of Trustees, as described below. Market value is determined as follows:
Listed equity securities (including shares ofclosed-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. Debt securities and unlisted preferred equity securities are valued based on evaluated bids furnished to the Funds by an independent pricing service or bid prices obtained from broker-dealers. Broker-dealer 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. 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. On the last business day of the month, the Funds will fair value S&P 500® Index options using the closing rotation values published by the Cboe®. 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
51 |
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
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, 2019 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 | $ | 31,720,050 | 0.4 | % | $ | (178,103,980 | ) | (2.2 | )% | |||||||
Gateway Equity Call Premium Fund | — | — | (1,291,230 | ) | (2.2 | )% |
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 (including income reinvested) and foreign withholding tax, if applicable, is recorded on theex-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 apro ratabasis 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, if any, 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 Funds’ books and the U.S. dollar equivalent of the
| 52
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
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.
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.
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. Option Contracts. The Funds’ 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 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 subsequentlymarked-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.
e. Federal and Foreign Income Taxes. The Trust treats 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, 2019 and
53 |
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years 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 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.
f. Dividends and Distributions to Shareholders. Dividends and distributions are recorded on theex-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 and expiring capital loss carryforwards. 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, return of capital distributions received, deferred trustee’s fees and option contractmark-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 net realized short-term capital gains are reported as distributed from ordinary income for tax purposes.
| 54
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
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, 2018 was as follows:
2018 Distributions Paid From: | ||||||||||||
Fund | Ordinary | Long-Term | Total | |||||||||
Gateway Fund | $ | 108,227,324 | $ | — | $ | 108,227,324 | ||||||
Gateway Equity Call Premium Fund | 617,824 | — | 617,824 |
Distributions paid to shareholders from net investment income and net realized capital gains, based on accounting principles generally accepted in the United States of America, are consolidated and reported on the Statements of Changes in Net Assets as Distributions to Shareholders. Distributions paid to shareholders from net investment income and net realized capital gains expressed inper-share amounts, based on accounting principles generally accepted in the United States of America, are separately stated and reported within the Financial Highlights.
As of December 31, 2018, capital loss carryforwards were as follows:
Gateway | Gateway | |||||||
Capital loss carryforward: |
| |||||||
Short-term: |
| |||||||
No expiration date | $ | — | $ | (1,841,061 | ) | |||
|
|
|
|
As of June 30, 2019, the tax cost of investments (including derivatives) and unrealized appreciation (depreciation) on a federal tax basis were as follows:
Gateway | Gateway | |||||||
Federal tax cost | $ | 5,264,103,863 | $ | 39,076,665 | ||||
|
|
|
| |||||
Gross tax appreciation | $ | 3,146,121,038 | $ | 20,823,523 | ||||
Gross tax depreciation | (131,202,633 | ) | (651,903 | ) | ||||
|
|
|
| |||||
Net tax appreciation | $ | 3,014,918,405 | $ | 20,171,620 | ||||
|
|
|
|
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 and derivative mark-to-market.
g. Repurchase Agreements. Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires
55 |
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
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 aretri-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, 2019, 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.
h. Indemnifications. Under the Trust’s 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.
| 56
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
The following is a summary of the inputs used to value the Funds’ investments as of June 30, 2019, at value:
Gateway Fund
Asset Valuation Inputs
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks(a) | $ | 8,028,773,061 | $ | — | $ | — | $ | 8,028,773,061 | ||||||||
Purchased Options(a) | — | 31,720,050 | — | 31,720,050 | ||||||||||||
Short-Term Investments | — | 212,231,981 | — | 212,231,981 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 8,028,773,061 | $ | 243,952,031 | $ | — | $ | 8,272,725,092 | ||||||||
|
|
|
|
|
|
|
|
Liability Valuation Inputs
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Written Options(a) | $ | — | $ | (178,103,980 | ) | $ | — | $ | (178,103,980 | ) | ||||||
|
|
|
|
|
|
|
|
(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, 2019, 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) | $ | 58,424,426 | $ | — | $ | — | $ | 58,424,426 | ||||||||
Short-Term Investments | — | 777,474 | — | 777,474 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 58,424,426 | $ | 777,474 | $ | — | $ | 59,201,900 | ||||||||
|
|
|
|
|
|
|
|
Liability Valuation Inputs
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Written Options(a) | $ | — | $ | (1,291,230 | ) | $ | — | $ | (1,291,230 | ) | ||||||
|
|
|
|
|
|
|
|
(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, 2019, there were no transfers among Levels 1, 2 and 3.
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 written index call options and purchased index put options.
57 |
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
The Funds 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, 2019, Gateway Fund used written index call options and purchased index put options and Gateway Equity Call Premium Fund used written index call options in accordance with this objective.
The following is a summary of derivative instruments for Gateway Fund as of June 30, 2019, as reflected within the Statements of Assets and Liabilities:
Assets | Investments | |||
Exchange-traded asset derivatives |
| |||
Equity contracts | $ | 31,720,050 | ||
Liabilities | Options written | |||
Exchange-traded liability derivatives |
| |||
Equity contracts | $ | (178,103,980 | ) |
1 | Represents purchased options, at value. |
Transactions in derivative instruments for Gateway Fund during the six months ended June 30, 2019, as reflected within the Statements of Operations were as follows:
Net Realized Gain (Loss) on: | Investments2 | Options written | ||||||
Equity contracts | $ | (205,069,618 | ) | $ | (563,361,424 | ) | ||
Net Change in Unrealized | Investments2 | Options written | ||||||
Equity contracts | $ | (13,420,899 | ) | $ | (16,590,227 | ) |
2 | Represents realized loss and change in unrealized appreciation (depreciation), respectively, for purchased options during the period. |
| 58
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
The following is a summary of derivative instruments for Gateway Equity Call Premium Fund as of June 30, 2019, as reflected within the Statements of Assets and Liabilities:
Liabilities | Options written | |||
Exchange-traded liability derivatives |
| |||
Equity contracts | $ | (1,291,230 | ) |
Transactions in derivative instruments for Gateway Equity Call Premium Fund during the six months ended June 30, 2019, as reflected within the Statements of Operations were as follows:
Net Realized Gain (Loss) on: | Options written | |||
Equity contracts | $ | (4,382,155 | ) | |
Net Change in Unrealized | Options written | |||
Equity contracts | $ | (22,954 | ) |
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 benon-hedge transactions for the purpose of these disclosures.
The volume of option contract activity as a percentage of investments in common stocks, for Gateway Fund based onmonth-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended June 30, 2019:
Gateway Fund | Call Options | Put Options | ||||||
Average Notional Amount Outstanding | 99.12 | % | 97.55 | % | ||||
Highest Notional Amount Outstanding | 99.29 | % | 99.29 | % | ||||
Lowest Notional Amount Outstanding | 99.04 | % | 99.04 | % | ||||
Notional Amount Outstanding as of June 30, 2019 | 99.13 | % | 99.13 | % |
59 |
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
The volume of option contract activity as a percentage of investments in common stocks, for Gateway Equity Call Premium Fund, based onmonth-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended June 30, 2019:
Gateway Equity Call Premium Fund | Call Options Written* | |||
Average Notional Amount Outstanding | 98.90 | % | ||
Highest Notional Amount Outstanding | 99.19 | % | ||
Lowest Notional Amount Outstanding | 98.60 | % | ||
Notional Amount Outstanding as of June 30, 2019 | 99.19 | % |
* | 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. |
Notional amounts outstanding at the end of the prior period are included in the averages above.
5. Purchases and Sales of Securities. For the six months ended June 30, 2019, purchases and sales of securities (excluding short-term investments and option contracts) were as follows:
Fund | Purchases | Sales | ||||||
Gateway Fund | $ | 517,644,218 | $ | 1,421,835,873 | ||||
Gateway Equity Call Premium Fund | 8,151,023 | 27,478,064 |
6. Management Fees and Other Transactions with Affiliates.
a. Management Fees. Gateway Investment Advisers, LLC (“Gateway Advisers”) serves as investment adviser to the Funds. Gateway Advisers is a subsidiary of Natixis Investment Managers, L.P. (“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 | % |
Gateway Advisers has 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,
| 60
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until April 30, 2020, 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, 2019, 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 | % |
Gateway Advisers shall be permitted to recover expenses borne under the expense limitation agreement (whether through waiver of 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.
For the six months ended June 30, 2019, the management fees and waiver of management fees for each Fund were as follows:
Fund | Gross | Contractual | Voluntary | Net | Percentage of | |||||||||||||||||||
Gross | Net | |||||||||||||||||||||||
Gateway Fund | $ | 25,634,867 | $ | 2,415,976 | $ | — | $ | 23,218,891 | 0.63 | % | 0.57 | % | ||||||||||||
Gateway Equity Call Premium Fund | 198,179 | 75,644 | 1,669 | 120,866 | 0.65 | % | 0.40 | % |
1 | Management fee waiver is subject to possible recovery until December 31, 2020. |
2 | Voluntary management fee waivers are not subject to recovery under the expense limitation agreement described above. |
61 |
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
For the six months ended June 30, 2019, class-specific expenses have been reimbursed as follows:
Reimbursement | ||||||||||||||||||||
Fund | Class A | Class C | Class N | Class Y | Total | |||||||||||||||
Gateway Fund | $ | 115,064 | $ | — | $ | — | $ | — | $ | 115,064 |
No expenses were recovered for either Fund during the six months ended June 30, 2019 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 Trust. Pursuant to this agreement, Natixis Distribution serves as principal underwriter of the Funds of the Trust.
Pursuant to Rule12b-1 under the 1940 Act, the Trust has 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 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 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.
Under the Class C Plans, 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, 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, 2019, the service and distribution fees for each Fund were as follows:
Service Fees | Distribution Fees | |||||||||||
Fund | Class A | Class C | Class C | |||||||||
Gateway Fund | $ | 1,426,477 | $ | 324,943 | $ | 974,828 | ||||||
Gateway Equity Call Premium Fund | 2,777 | 1,074 | 3,221 |
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 assub-administrator. Pursuant to an
| 62
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts, Natixis ETF Trust and Natixis Advisors, each Fund pays Natixis Advisors monthly itspro 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, 0.0275% 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.
Effective October 1, 2018, State Street Bank agreed to reduce the fees it receives from Natixis Advisors for serving assub-administrator to the Funds. Also, effective October 1, 2018, Natixis Advisors agreed to voluntarily waive fees paid by the Funds in an amount equal to the reduction insub-administrative fees discussed above. The waiver is in effect through June 30, 2019.
For the six months ended June 30, 2019, the administrative fees for each Fund were as follows:
Fund | Gross | Waiver of | Net | |||||||||
Gateway Fund | $ | 1,806,222 | $ | 42,951 | $ | 1,763,271 | ||||||
Gateway Equity Call Premium Fund | 13,550 | 323 | 13,227 |
Effective July 1, 2019, each Fund pays Natixis Advisors monthly its pro rata portion of fees equal to an annual rate of 0.0540% 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, 0.0275% 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 currentper-account equivalent fee limit approved
63 |
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
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, 2019, thesub-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 | |||
Gateway Fund | $ | 2,325,780 | ||
Gateway Equity Call Premium Fund | 7,528 |
As of June 30, 2019, the Funds owe Natixis Distribution the following reimbursements forsub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as payable to distributor):
Fund | Reimbursements of | |||
Gateway Fund | $ | 58,276 | ||
Gateway Equity Call Premium Fund | 239 |
Sub-transfer agent fees attributable to Class A, Class C and Class Y are allocated on apro 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, 2019, were as follows:
Fund | Commissions | |||
Gateway Fund | $ | 57,457 | ||
Gateway Equity Call Premium Fund | 30 |
f. Trustees Fees and Expenses. The Trust does 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 $360,000. 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 $190,000. 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
| 64
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
Committee receives an additional retainer fee at the annual rate of $15,000. 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 Funds 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 allocatedpro 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 Funds under the Plan are reflected as Deferred Trustees’ fees in the Statements of Assets and Liabilities.
Certain officers and employees of Natixis Advisors and its affiliates are also officers and/or Trustees of the Trust.
g. Affiliated Ownership. As of June 30, 2019, Natixis and affiliates held shares of Gateway Equity Call Premium Fund representing less than 0.01% of the Fund’s net assets. Investment activities of affiliated shareholders could have material impacts on the Funds.
h. Reimbursement of Transfer Agent Fees and Expenses. Natixis Advisors has given a binding contractual undertaking to the Gateway Equity Call Premium Fund to reimburse any and all transfer agency expenses for the Fund’s Class N shares. This undertaking is in effect through April 30, 2020 and is not subject to recovery under the expense limitation agreement described above.
For the six months ended June 30, 2019, Natixis Advisors reimbursed the Fund $69 for transfer agency expenses.
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 apro 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.
65 |
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
For the six months ended June 30, 2019, the Funds incurred the following class-specific transfer agent fees and expenses (includingsub-transfer agent fees, where applicable):
Transfer Agent Fees and Expenses | ||||||||||||||||
Fund | Class A | Class C | Class N | Class Y | ||||||||||||
Gateway Fund | $ | 380,565 | $ | 86,739 | $ | 603 | $ | 2,173,393 | ||||||||
Gateway Equity Call Premium Fund | 460 | 191 | 69 | 12,295 |
8. Line of Credit. 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. 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 certain other legal fees in connection with the line of credit agreement, which are being amortized over a period of 364 days and are reflected as legal fees and/or 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, 2019, neither Fund had borrowings under this agreement.
9. 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, 2019, 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 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:
Number of 5% | Percentage of | |||||||
Gateway Equity Call Premium Fund | 2 | 71.10 | % |
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 anon-discretionary customer are included in the table above. For other omnibus accounts, the Funds do
| 66
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
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.
10. 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, 2019 | | Year Ended December 31, 2018 | |||||||||||||
Gateway Fund | Shares | Amount | Shares | Amount | ||||||||||||
Class A |
| |||||||||||||||
Issued from the sale of shares | 2,782,242 | $ | 91,402,737 | 7,507,779 | $ | 249,848,440 | ||||||||||
Issued in connection with the reinvestment of distributions | 184,238 | 6,097,208 | 416,697 | 13,715,940 | ||||||||||||
Redeemed | (6,467,359 | ) | (211,984,406 | ) | (20,582,546 | ) | (685,981,026 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | (3,500,879 | ) | $ | (114,484,461 | ) | (12,658,070 | ) | $ | (422,416,646 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued from the sale of shares | 239,259 | $ | 7,818,275 | 955,997 | $ | 31,644,591 | ||||||||||
Issued in connection with the reinvestment of distributions | 13,816 | 454,988 | 24,932 | 816,895 | ||||||||||||
Redeemed | (1,479,555 | ) | (48,405,488 | ) | (2,430,008 | ) | (80,527,268 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | (1,226,480 | ) | $ | (40,132,225 | ) | (1,449,079 | ) | $ | (48,065,782 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class N |
| |||||||||||||||
Issued from the sale of shares | 1,629,831 | $ | 53,384,368 | 5,710,661 | $ | 188,499,842 | ||||||||||
Issued in connection with the reinvestment of distributions | 23,888 | 790,315 | 44,141 | 1,451,036 | ||||||||||||
Redeemed | (489,353 | ) | (16,121,413 | ) | (3,846,255 | ) | (128,458,328 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 1,164,366 | �� | $ | 38,053,270 | 1,908,547 | $ | 61,492,550 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Class Y |
| |||||||||||||||
Issued from the sale of shares | 23,994,895 | $ | 788,458,601 | 69,926,573 | $ | 2,326,487,140 | ||||||||||
Issued in connection with the reinvestment of distributions | 1,129,303 | 37,353,759 | 2,118,425 | 69,681,734 | ||||||||||||
Redeemed | (35,414,051 | ) | (1,162,924,510 | ) | (57,343,674 | ) | (1,895,612,387 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | (10,289,853 | ) | $ | (337,112,150 | ) | 14,701,324 | $ | 500,556,487 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (decrease) from capital share transactions | (13,852,846 | ) | $ | (453,675,566 | ) | 2,502,722 | $ | 91,566,609 | ||||||||
|
|
|
|
|
|
|
|
67 |
Notes to Financial Statements (continued)
June 30, 2019 (Unaudited)
10. Capital Shares (continued).
| Six Months Ended June 30, 2019 | | Year Ended December 31, 2018 | |||||||||||||
Gateway Equity Call Premium Fund | Shares | Amount | Shares | Amount | ||||||||||||
Class A |
| |||||||||||||||
Issued from the sale of shares | 52,249 | $ | 635,824 | 112,828 | $ | 1,355,617 | ||||||||||
Issued in connection with the reinvestment of distributions | 816 | 9,888 | 1,997 | 23,737 | ||||||||||||
Redeemed | (80,263 | ) | (962,421 | ) | (491,439 | ) | (5,907,256 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | (27,198 | ) | $ | (316,709 | ) | (376,614 | ) | $ | (4,527,902 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Class C |
| |||||||||||||||
Issued from the sale of shares | 3,893 | $ | 46,565 | 27,989 | $ | 337,424 | ||||||||||
Issued in connection with the reinvestment of distributions | 78 | 945 | 48 | 581 | ||||||||||||
Redeemed | (16,243 | ) | (196,553 | ) | (6,562 | ) | (79,157 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | (12,272 | ) | $ | (149,043 | ) | 21,475 | $ | 258,848 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Class N |
| |||||||||||||||
Issued from the sale of shares | — | $ | — | — | $ | — | ||||||||||
Issued in connection with the reinvestment of distributions | 1 | 7 | 1 | 12 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | 1 | $ | 7 | 1 | $ | 12 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Class Y |
| |||||||||||||||
Issued from the sale of shares | 875,670 | $ | 10,376,467 | 3,457,270 | $ | 40,202,877 | ||||||||||
Issued in connection with the reinvestment of distributions | 9,570 | 115,970 | 14,895 | 176,962 | ||||||||||||
Redeemed | (2,342,762 | ) | (27,730,012 | ) | (3,602,198 | ) | (43,001,681 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net change | (1,457,522 | ) | $ | (17,237,575 | ) | (130,033 | ) | $ | (2,621,842 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Decrease from capital share transactions | (1,496,991 | ) | $ | (17,703,320 | ) | (485,171 | ) | $ | (6,890,884 | ) | ||||||
|
|
|
|
|
|
|
|
| 68
LOOMIS SAYLES FUNDS
Supplement dated February 12, 2019 to the Loomis Sayles Funds Statutory Prospectus, dated February 1, 2019, the Natixis Funds Statutory Prospectus dated February 1, 2019, April 1, 2018, May 1, 2018, June 1, 2018 and December 28, 2018, as may be revised or supplemented from time to time, for the following funds:
AEW Real Estate Fund | Mirova International Sustainable Equity Fund | |
ASG Global Alternatives Fund | Natixis Oakmark Fund | |
ASG Managed Futures Strategy Fund | Natixis Oakmark International Fund | |
Gateway Fund | Natixis Sustainable Future 2015 FundSM | |
Gateway Equity Call Premium Fund | Natixis Sustainable Future 2020 FundSM | |
Loomis Sayles Global Allocation Fund | Natixis Sustainable Future 2025 FundSM | |
Loomis Sayles Global Growth Fund | Natixis Sustainable Future 2030 FundSM | |
Loomis Sayles Growth Fund | Natixis Sustainable Future 2035 FundSM | |
Loomis Sayles High Income Fund | Natixis Sustainable Future 2040 FundSM | |
Loomis Sayles Intermediate Duration Bond Fund | Natixis Sustainable Future 2045 FundSM | |
Loomis Sayles Investment Grade Bond Fund | Natixis Sustainable Future 2050 FundSM | |
Loomis Sayles Limited Term Government and Agency Fund | Natixis Sustainable Future 2055 FundSM | |
Loomis Sayles Multi-Asset Income Fund | Natixis Sustainable Future 2060 FundSM | |
Loomis Sayles Senior Floating Rate and Fixed Income Fund | Natixis U.S. Equity Opportunities Fund | |
Loomis Sayles Strategic Alpha Fund | Vaughan Nelson Select Fund | |
Loomis Sayles Strategic Income Fund | Vaughan Nelson Small Cap Value Fund | |
Mirova Global Green Bond Fund | Vaughan Nelson Value Opportunity Fund | |
Mirova Global Sustainable Equity Fund |
Effective immediately, the information under the sub-section “Class N Shares” in the section “Purchase and Sale of Fund Shares” of the Fund Summary for each Fund is hereby amended and restated as follows:
Class N shares of the Fund are subject to a $1,000,000 initial investment minimum. There is no initial investment minimum for Certain Retirement Plans and funds of funds that are distributed by Natixis Distribution, L.P. (the “Distributor”). Sub accounts held
This page not part of shareholder report
within an omnibus account, where the omnibus account has at least $1,000,000, are not required to meet the investment minimum. There is no subsequent investment minimum for these shares. In its sole discretion, the Distributor may waive the investment minimum requirement for accounts as to which the Distributor reasonably believes will have enough assets to exceed the investment minimum requirement within a relatively short period of time following the establishment date of such accounts in Class N. If, after two years, an account’s value does not exceed the investment minimum requirement, the Distributor and the Fund reserve the right to redeem such account.
SP2019-32
This page not part of shareholder report
NATIXIS FUNDS
Supplement dated June 28, 2019 to the Natixis Funds Prospectuses and Summary Prospectuses, each dated May 1, 2019, as may be revised or supplemented from time to time, for the following funds:
GATEWAY FUND
(the “Fund”)
The text of the last footnote to the “Annual Fund Operating Expenses” table in the “Fund Fees & Expenses” sub-section of the Fund Summary section of the Fund’s prospectus is hereby amended and restated as follows:
Natixis Advisors, L.P. has given a binding contractual undertaking to the Fund to reimburse any and all transfer agency expenses attributable to accounts admitted to Class N shares via a prospectus provision that allows Natixis Distribution, L.P., at its sole discretion, to waive the investment minimum for accounts as to which the relevant financial intermediary has provided assurances, in writing, that the accounts will be held in omnibus fashion beginning no more than two years following the establishment date of such accounts in Class N shares. This undertaking is in effect through June 30, 2021 and may be terminated before then only with the consent of the Fund’s Board of Trustees.
ASG Dynamic Allocation Fund | McDonnell Intermediate Municipal Bond Fund | |
ASG Global Alternatives Fund | Mirova Global Green Bond Fund | |
ASG Managed Futures Strategy Fund | Mirova Global Sustainable Equity Fund | |
ASG Tactical U.S. Market Fund | Mirova International Sustainable Equity Fund | |
Gateway Equity Call Premium Fund | Natixis Oakmark Fund | |
Gateway Fund | Natixis Oakmark International Fund | |
Loomis Sayles High Income Fund | Natixis U.S. Equity Opportunities Fund | |
Loomis Sayles Investment Grade Bond Fund | Vaughan Nelson Small Cap Value Fund | |
Loomis Sayles Multi-Asset Income Fund | Vaughan Nelson Value Opportunity Fund | |
Loomis Sayles Strategic Alpha Fund |
(each a “Fund”)
This page not part of shareholder report
Effective July 1, 2019, the following is added to the Prospectus as “APPENDIX B — Financial Intermediary Specific Commissions & Investment Minimum Waivers”.
APPENDIX B — Financial Intermediary Specific Commissions & Investment Minimum Waivers
UBS Financial Services, Inc. (“UBS-FS”)
Pursuant to an agreement with the Funds, Class Y shares may be available on certain brokerage platforms at UBS-FS. For such platforms, UBS-FS may charge commissions on brokerage transactions in each Fund’s Class Y shares. A shareholder should contact UBS-FS for information about the commissions charged by UBS-FS for such transactions. Shares of each Fund are available in other share classes that have different fees and expenses.
The initial and subsequent investment minimums for Class Y shares are waived for transactions through such brokerage platforms at UBS-FS.
This page not part of shareholder report
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 forClosed-End Management Investment Companies. |
Not applicable.
Item 8. | Portfolio Managers ofClosed-End Management Investment Companies |
Not applicable.
Item 9. | Purchases of Equity Securities byClosed-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 FormN-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 period covered by the report that have materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities forClosed-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 Rule30a-2(a) under the Investment Company Act of 1940 (17 CFR270.30a-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, 2019 |
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, 2019 | |
By: | /s/ Michael C. Kardok | |
Name: | Michael C. Kardok | |
Title: | Treasurer | |
Date: | August 21, 2019 |