With maximum sales charge. Maximum sales charge is the maximum fee on the purchase of new shares of a mutual fund. Paying a sales charge is similar to paying a premium for a security in that the customer must pay a higher offering price. Sometimes called a load.
The sum of dividends, short-term and long-term capital gains.
Capital gains realized from the disposition of investments held for less than one year
The price at which shareholders reinvest dividends and/or capital gains.
The date used to determine which shareholders are eligible to receive the distribution. Shareholders who purchase fund shares on or before the record date will receive the distribution.
The date when shareholders are paid their distribution, either in cash or by reinvestment in additional fund shares.
Net expense ratio is the fund’s total annual operating expense ratio after any fee waivers or reimbursements.
Net asset value is a mutual fund's price per share. The value is calculated daily, based on the value of the securities in the portfolio at market close.
Capital gains realized from the disposition of investments held for more than one year
Gross expense ratio is the fund’s total annual operating expense ratio before any fee waivers or reimbursements.
Calculations are hypothetical estimates and are shown for illustrative purposes only. Annual fees are based on the investment amount entered, assuming no return. Fund’s operating expenses based on the net expense ratio (Total annual fund operating expenses/Total annual fund operating expenses after fee waiver and/or expense reimbursement) as stated in the fee table of the fund’s current prospectus. Annual fees calculated does not reflect any sales charge or breakpoints for shares that are purchased or redeemed.
The date when the distribution amount per share is deducted from the fund's NAV. Shareholders who purchase fund shares on the ex-dividend date are not eligible to receive the distribution.
The sum of declared dividends for every ordinary share issued.
Unsubsidized 30-day SEC yield is calculated using the gross expenses of the fund. Gross expenses do not include any fee waivers or reimbursement.
Gateway Fund GATEX
- Overview
- Performance
- Distributions
- Management
- Fund changes
Why choose this fund
- For exposure to stocks but with less volatility
- For majority of returns associated with equity market investments, but with less risk
- To diversify bond exposure without increasing overall risk
Average annual total returns (as of )
| 1-yr | 3-yr | 5-yr | 10-yr | Since inception | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| at NAV | 3.06% | 2.99% | 6.47% | 4.78% | 1.23% | 1.34% | 3.47% | 3.42% | 7.91% | 7.90% |
| w/MSC | -2.86% | -2.93% | 4.39% | 2.74% | 0.04% | 0.15% | 2.86% | 2.81% | 7.72% | 7.71% |
Performance data quoted represents past performance and is no guarantee 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. Returns include changes in share
price and reinvestment of dividends and capital gains, if any.
Click here for fees and expenses.
Click here for important performance information.
Option Portfolio Statistics (as of )
| Calls | Puts | |
|---|---|---|
| % hedged with options | 100% | > 95% |
| Weighted average moneyness | 1.5% - 2.5% ITM | 10% - 12.5% OTM |
Days to expiration (weighted) |
41 | 54 |
| Weighted % of annualized cash flow |
10% - 15% | n/a |
| Weighted % of annualized cost |
n/a | 2.5% - 5% |
Fund objective
- Seeks to capture the majority of returns associated with equity market investments, while exposing investors to less risk than other equity investments
Investment strategy
- The fund invests in a broadly diversified portfolio of common stocks that closely tracks the U.S. equity market, while hedging the portfolio with index call and put options.
- Through this hedging, the fund seeks to lower the volatility and risk of loss of its underlying equity portfolio.
- Selling index call options reduces the fund’s volatility by providing a steady cash flow and is an important source of long-term return, although it also reduces the fund’s ability to profit from increases in the value of its equity portfolio.
- The fund also buys index put options in an attempt to protect it from significant market declines that may occur over short periods of time. The value of an index put option generally increases as the stocks in the index decrease in price and decreases as those stocks increase in price.
- The combination of the diversified stock portfolio, the steady cash flow from the sale of index call options and the potential to limit downside losses using index put options is intended to provide the fund with the majority of the returns associated with equity market investments while exposing investors to less risk than other equity investments.
- The fund maintains its hedging strategy across changing market cycles.
Risks
- The effectiveness of the fund’s index option-based risk management strategy may be reduced if the fund’s equity portfolio does not correlate to the performance of the index underlying its option positions.
- The fund may invest in foreign securities traded in U.S. markets, including through ADRs. Foreign securities are subject to foreign currency fluctuations, higher volatility than U.S. securities and limited liquidity. Political, economic and information risks are also associated with foreign securities. Investments in emerging markets may be subject to these risks to a greater extent than those in more developed markets.
- The fund may invest in real estate investment trusts (REITs). REITs are subject to certain risks, particularly those risks associated with the real estate market and mortgage investing. These risks include fluctuating property values, changes in interest rates, property taxes and mortgage-related risks.
- The value of the fund’s positions in index options fluctuates in response to changes in the value of the underlying index. Selling index call options can reduce the risk of owning stocks, but it limits the opportunity to profit from an increase in the market value of stocks in exchange for up-front cash at the time of selling the call option. The fund also risks losing all or part of the cash paid for purchasing index put options. Unusual market conditions or the lack of a ready market for any particular option at a specific time may reduce the effectiveness of the fund’s option strategies, and for these and other reasons the fund’s option strategies may not reduce the fund’s volatility to the extent desired. From time to time, the fund may reduce its holdings of put options, resulting in an increased exposure to a market decline. Time until expiration is the time remaining until an option contract expires.
Fund basics
| Ticker | GATEX |
| CUSIP | 367829207 |
| Fund number | 1984 |
| Inception date | 12/07/1977 |
| Total net assets (as of 02/02/2012) |
$5.51 billion |
| Asset class | Alternatives |
Daily stats |
(as of 02/02/2012) | |
| NAV | $26.69 | $0.01 | 0.04% |
| w/MSC | $28.32 | |
| 30-day SEC yield | 1.51% | |
| 30-day SEC yield
(unsubsidized) |
1.40% | |
Portfolio managers Read more
J. Patrick Rogers
Gateway Investment Advisers, LLC
Managed the fund since 1994
Michael T. Buckius, CFA
Gateway Investment Advisers, LLC
Managed the fund since 2008
Paul R. Stewart, CFA
Gateway Investment Advisers, LLC
Managed the fund since 2006
Summary prospectus (ABC)
