Natixis Funds: Conference call

Summary of conference call with J. Patrick Rogers and Michael T. Buckius on October 7, 2008
Gateway Investment Advisers, LLC – Gateway Fund

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Review and outlook

For the third quarter the Gateway Fund was down 1.02% while the S&P 500 lost 8.37%
On a year-to-date basis (through 9/30/08) the fund was down 3.12% compared to a loss of 19.29% for the S&P 500
On a year-to-date basis (through 10/6/08) the fund was down 7.86% compared to a loss of about 27% for the S&P 500
Since the market peak of October 9, 2007 through October 6, 2008, the fund had lost 8.32% compared to a loss of 30.49% for the S&P 500
Virtually all of the outperformance relative to the S&P 500 can be explained by the options positions
Elevated volatility levels allowed the strategy to capture higher call premia and cash flow; this heightened volatility has resulted opportunities to sell S&P 500 Index call options and generate more than 60% annualized cash flow
Potential cash flow from selling index call options has never been more attractive than it is right now, and capturing it doesn’t require exposure to any sizable additional risk
If the market were to stop falling the strategy has the potential to earn a nice rate of return going forward simply because the volatility is priced so rich
Spikes in volatility also created opportunities to realize profits in puts, which also contributed to returns
The team has been reducing put coverage and taken sizable gains; puts now cover between 50% and 65% of the portfolio
Puts have been reduced for two reasons:

We have owned put options whose premiums have spiked up to an annualized price of 50% to 60% of their strike price; continuing to hold puts priced that richly is effectively a bet that the market will continue to experience steep losses, and if it doesn’t, the value of those puts will decline rapidly
The put options the fund holds provide a form of "two-pronged" protection in a market like this—some are now in the money so that they are increasing in price dollar-for-dollar with a market decline, plus with volatility so high the time value of the put options is also increasing; this results in the remaining puts potentially providing more protection than when they were first purchased

The strategy and its managers have “been here before”: Although the circumstances driving volatility now are significantly different from the circumstances at the bottom of the bear market in 2002 and in 1998 when Russia defaulted on its debt and Long-Term Capital Management collapsed and on 9/11, the way the strategy’s option prices have changed as a result of volatility has been almost the same
Investors have heightened their awareness of potential risks and scrutinized aspects of capital market function that once could safely be assumed sound. In light of that, Gateway would like advisors and shareholders to know:

The S&P 500 Index options market has been functioning very well; in fact, while liquidity is drying up in other areas of the capital markets S&P 500 option contracts have been experiencing record volume
Counterparty risk in the S&P 500 options market remains negligible due to the presence of the Options Clearing Corporation, a non-profit entity whose function is to clear the type of exchange-traded index options the Gateway strategy utilizes; it is a highly capitalized entity with a long track record of successfully clearing trades
The temporary ban on short selling certain financial stocks has had no impact on how the Gateway strategy is implemented; if there has been any effect at all it has been to increase volatility and index option volume, both of which would be beneficial to the strategy

Recap of investment strategy

There are three components to the Gateway strategy:

Investing in a diversified portfolio built to track the performance of the S&P 500
Generating cash flow by selling S&P 500 Index call options

The strategy will utilize call options that are anywhere from one to four months until expiration with strike prices that are somewhat clustered to being at-the-money
Call selling typically will bring in approximately 16% to 18% annualized cash flow; it has been as low as 8% and as high as 40%

Potentially providing downside protection by purchasing S&P 500 Index put options with a portion of the cash flow generated by selling index call options.

The put options will typically be 6% to 10% out-of-the-money and will have two to six months until expiration.
The cost of put protection will typically range from 1% annualized cash flow to 8%.

Gateway Fund^1,***
(Class A)

Expense
Ratios²

At Net Asset Value^†
as of September 30, 2008

With Max. Sales Charge³
as of September 30, 2008

TRADING SYMBOL

INCEPTION
DATE

GROSS

NET

1 YEAR TOTAL

5 YEAR AVERAGE ANNUAL

10 YEAR AVERAGE ANNUAL

1 YEAR TOTAL

5 YEAR AVERAGE ANNUAL

10 YEAR AVERAGE ANNUAL

GATEX

12/07/77

1.01%

0.94%

-3.10%

5.93%

5.48%

-8.66%

4.68%

4.86%

1. Performance reflects waived fees and expenses. Returns would have been lower without these waivers.
2. The Gross Expense Ratio does not reflect any potential reimbursement/waiver of expenses as stated in the most recent fund prospectus. The Net Expense Ratio reflects the reimbursement/waiver of expenses, if any, as stated in the most recent fund prospectus. Please Note: Fund Expenses and Expense Reductions are subject to change. Expense Reductions are contractual and are set to expire 4/30/10. Investors should consult the most recent fund prospectus for more detailed information.
3. Maximum sales charge (Class A shares) for all stock funds is 5.75%. Maximum sales charge (Class A shares) for all bond funds is 4.50%, excluding MA Tax Free Income Fund, which is 4.25%, and Limited Term U.S. Government Fund which is 3.00%. Class B shares are subject to a maximum contingent deferred sales charge (CDSC) of 5.00%. Class C shares are subject to a CDSC of 1.00% on redemptions made within one year of the date of purchase.
*** The returns include performance from the predecessor fund, which was reorganized to Class A shares on 2/19/08. The predecessor fund performance has been adjusted to reflect the sales loads of Class A shares. See the prospectus for more details. The fund’s total annual operating expenses have been under binding expense cap arrangements. The performance would have been lower without such reductions.

Historical fund performance represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, will be worth more or less than their original cost. Recent returns may be higher or lower than those shown. All performance reflects current sales charges and expenses. Please refer to the current prospectus for details.

Top five holdings for the Gateway Fund

Information is as of 8/31/2008*
Exxon Mobil Corp.	3.81%
General Electric Co.	2.73%
Johnson & Johnson	2.00%
Citigroup, Inc.	1.69%
International Business Machines Corp.	1.69%

* The portfolio is actively managed. The top five holdings are subject to change.

Investment Products are distributed or marketed by Natixis Distributors, L.P. Individual advisory services are provided by Natixis Asset Management Advisors, L.P.

Natixis Asset Management Advisors, L.P., 399 Boylston Street, Boston, MA 02116

Nothing herein is intended as specific investment advice and no person should make any investment decision based solely on the information contained in this summary. There is no assurance that this strategy will achieve its objective and correlation may vary from one portfolio to another. Reference to specific securities or holdings should not be considered recommendations.

Because the portfolio is actively managed, there can be no assurances the fund invests or will continue to invest in the securities or sectors referenced above Such references should not be considered a recommendation for action. The opinions expressed are those of the manager's as of the date indicated, and are subject to change as economic or market conditions change. Estimates and predictions are not guaranteed to occur.

^† These results include reinvestment of any dividends and capital gains but do not include a sales charge.

*** The returns include performance from the predecessor fund, which was reorganized to Class A shares on 2/19/08. The predecessor fund performance has been adjusted to reflect the sales loads of Class A shares. See the prospectus for more details. The fund’s total annual operating expenses have been under binding expense cap arrangements. The performance would have been lower without such reductions.

The S&P 500 is an unmanaged market-weighted index of 500 of the nation's largest stocks from a broad variety of industries. The S&P 500 represents about 80% of the total market value of all stocks on the New York Stock Exchange. Market-weighted means that component stocks are weighted according to the total value of their outstanding shares.

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 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 not own any put options, resulting in an increased exposure to a market decline. Accordingly, the purchase of fund shares should be viewed as a long-term investment. Time until expiration is the time remaining until an option contract expires.

For more complete information, including a prospectus, please contact your financial advisor. You may also view a current prospectus online, order literature through our site, or contact an Investor Service Representative at 800-225-5478. Investors should consider a fund's objective, risks and expenses carefully before investing. This information, and other information, can be found in the fund's prospectus. Please read the prospectus carefully before investing. Other expenses, including sales charges, apply to a continued investment in the fund and are described in the fund's current prospectus.
The mutual funds referred to in this website are offered and sold only to persons who are eligible to purchase U.S. registered investment funds and are offered by prospectus only.

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