[May 04, 2015]

Gateway Investment Advisers Awarded $100 Million Low-Volatility Equity Mandate from California State Teachers' Retirement System

Gateway (News - Alert) Investment Advisers, LLC (Gateway), an affiliate of Natixis Global Asset Management, has been awarded a $100 million mandate as part of a low- volatility and covered call program for the California State Teachers' Retirement System (CalSTRS).

Gateway's actively managed index call writing strategy is a component of CalSTRS' new Stabilized Equity program, and is part of its Innovation and Risk portfolio. Gateway has been a practitioner of this type of low-volatility equity strategy for more than 35 years. The firm managed $12.275 billion in assets, including public pension assets totaling more than $1.7 billion as of March 31, 2015.

"With market volatility shifting higher, forward-thinking plan sponsors like CalSTRS are actively seeking ways to enhance equity performance and reduce risk," said Paul R. Stewart, CEO of Gateway. "This mandate reflects Gateway's long-practiced core competency with index option writing to control risk and address market volatility."

Gateway's strategy invests in a diversified portfolio of stocks that seeks to track the performance of a broad-based index and actively sells listed index call options. The strategy seeks to generate full market cyclereturns similar to the equity market on a risk- adjusted basis, but with less volatility and downside risk than a long-only stock portfolio.

"Our decision to partner with Gateway was based on Gateway's singular focus on the active management of a broad-based index call writing strategy, as well as the firm's long track record and sizable assets under management in this area," said Steven Tong, Director of Innovation and Risk at CalSTRS.

About Gateway Investment Advisers LLC

Founded in 1977, Gateway is an investment management firm focused exclusively on low-volatility equity investing, successfully managing one of the industry's longest-running index option equity hedging programs. Gateway manages assets for a broad spectrum of investors, including open and closed end mutual funds, public pension funds, insurance companies, foundations and individuals. Gateway is an affiliate manager of Natixis Global Asset Management, one of the world's largest asset management firms with $890 billion of assets under management as of December 31, 2014. Follow us on Twitter (News - Alert) @Gateway_LLC.

About CalSTRS

The California State Teachers' Retirement System, with a portfolio valued at $191.2 billion as of March 31, 2015, is the largest educator-only pension fund in the world. CalSTRS administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans. CalSTRS also provides disability and survivor benefits. CalSTRS serves California's 879,000 public school educators and their families from the state's 1,700 school districts, county offices of education and community college districts. Follow us on Twitter @CalSTRS.

NGAM Distribution, L.P. is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Global Asset Management, S.A.

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