N-CSRS 1 d316301dncsrs.htm NATIXIS FUNDS TRUST I Natixis Funds Trust I

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-04323

 

 

Natixis Funds Trust I

(Exact name of Registrant as specified in charter)

 

 

888 Boylston Street, Suite 800 Boston, Massachusetts 02199-8197

(Address of principal executive offices) (Zip code)

 

 

Susan McWhan Tobin, Esq.

Natixis Distribution, LLC

888 Boylston Street, Suite 800

Boston, Massachusetts 02199-8197

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (617) 449-2139

Date of fiscal year end: December 31

Date of reporting period: June 30, 2022

 

 

 

Item 1. Reports to Stockholders.

(a) The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:

LOGO

 

LOGO

 

Semiannual Report

June 30, 2022

Loomis Sayles International Growth Fund

Natixis Oakmark Fund

Natixis Oakmark International Fund

Natixis U.S. Equity Opportunities Fund

Vaughan Nelson Mid Cap Fund

Vaughan Nelson Small Cap Value Fund

 

Table of Contents

Portfolio Review     1  
Portfolio of Investments     17  
Financial Statements     28  
Notes to Financial Statements     59  

 

LOGO

LOOMIS SAYLES INTERNATIONAL GROWTH FUND

 

Manager    Symbols   
Aziz V. Hamzaogullari, CFA®    Class A    LIGGX
Loomis, Sayles & Company, L.P.    Class C    LIGCX
   Class N    LIGNX
   Class Y    LIGYX

 

 

Investment Goal

The Fund’s investment goal is long-term growth of capital.

 

 

Average Annual Total Returns — June 30, 20223

 

         
    

6 Months

    

1 Year

    

Life of

Fund

     Expense Ratios4  
  Gross     Net  
     
Class Y (Inception 12/15/20)            
NAV     -21.09 %      -27.88 %      -15.64 %      2.46 %      0.95 % 
     
Class A (Inception 12/15/20)            
NAV     -21.11       -28.03       -15.81       2.71       1.20  
With 5.75% Maximum Sales Charge     -25.62       -32.17       -18.99        
     
Class C (Inception 12/15/20)            
NAV     -21.45       -28.54       -16.48       3.46       1.95  
With CDSC1     -22.24       -29.25       -16.48        
     
Class N (Inception 12/15/20)            
NAV     -21.09       -27.85       -15.62       1.58       0.90  
   
Comparative Performance            
MSCI ACWI ex USA Index (Net)2     -18.42       -19.42       -6.54                  

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 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 and includes automatic conversion to Class A shares after eight years.

 

2

The MSCI ACWI ex USA Index (Net) captures large and mid cap representation across 22 of 23 Developed Markets (DM) countries (excluding the US) and 27 Emerging Markets (EM) countries. With 2,361 constituents, the index covers approximately 85% of the global equity opportunity set outside the US.

 

3

Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

 

4

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense limitations set to expire on 4/30/23. 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.

 

1  |

NATIXIS OAKMARK FUND

 

Managers   Symbols
William C. Nygren, CFA®   Class A    NEFOX
Robert F. Bierig*   Class C    NECOX
M. Colin Hudson, CFA®**   Class N    NOANX
Michael J. Mangan, CFA®   Class Y    NEOYX
Michael A. Nicolas, CFA®  
Harris Associates L.P.  

 

*

Effective August 1, 2022, Robert F. Bierig serves as portfolio manager of the Fund.

**

Effective August 1, 2022, M. Colin Hudson no longer serves as portfolio manager of the Fund.

 

 

Investment Goal

The Fund seeks long-term capital appreciation.

 

 

Average Annual Total Returns — June 30, 20223

 

             
     6 Months     1 Year     5 Years     10 Years     Life of
Class N		     Expense Ratios4  
  Gross     Net  
     
Class Y                
NAV     -19.43 %      -14.03 %      8.76 %      11.99 %      — %      0.89 %      0.80 % 
     
Class A                
NAV     -19.52       -14.27       8.49       11.71       —       1.14       1.05  
With 5.75% Maximum Sales Charge     -24.15       -19.21       7.21       11.05       —        
     
Class C                
NAV     -19.83       -14.90       7.67       11.04       —       1.89       1.80  
With CDSC1     -20.62       -15.67       7.67       11.04       —        
     
Class N (Inception 5/1/17)                
NAV     -19.40       -13.99       8.90       —       9.24       1.55       0.75  
   
Comparative Performance                
S&P 500® Index2     -19.96       -10.62       11.31       12.96       11.28                  

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com/performance. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

 

1

Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase and includes automatic conversion to Class A shares after eight years.

 

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 U.S. equities market.

 

3

Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

 

4

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense limitations set to expire on 4/30/23. When a Fund’s expenses are below the limitations, 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.

 

|  2

NATIXIS OAKMARK INTERNATIONAL FUND

 

Managers   Symbols
David G. Herro, CFA®   Class A    NOIAX
Michael L. Manelli, CFA®   Class C    NOICX
Harris Associates L.P.   Class N    NIONX
  Class Y    NOIYX

 

 

Investment Goal

The Fund seeks long-term capital appreciation.

 

 

Average Annual Total Returns — June 30, 20224

 

             
     6 Months     1 Year     5 Years     10 Years     Life of
Class N		     Expense Ratios5  
  Gross     Net  
     
Class Y (Inception 5/1/17)                
NAV1     -19.18 %      -22.60 %      -0.65 %      5.45 %      — %      1.10 %      0.90 % 
     
Class A                
NAV     -19.27       -22.76       -0.89       5.32       —       1.35       1.15  
With 5.75% Maximum Sales Charge     -23.90       -27.20       -2.06       4.70       —        
     
Class C                
NAV     -19.58       -23.35       -1.64       4.68       —       2.10       1.90  
With CDSC2     -20.39       -24.11       -1.64       4.68       —        
     
Class N (Inception 5/1/17)                
NAV     -19.10       -22.48       -0.55       —       -0.25       1.25       0.85  
   
Comparative Performance                
MSCI World ex USA Index (Net)3     -18.76       -16.76       2.66       5.37       3.18                  

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

Prior to the inception of Class Y shares (5/1/2017), performance is that of Class A shares and reflects the higher net expenses of that share class.

 

2

Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase, and includes automatic conversion to Class A shares after eight years.

 

3

MSCI World ex USA Index (Net) is an unmanaged index that is designed to measure the equity market performance of developed markets, excluding the United States.

 

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 4/30/23. When a Funds 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 Funds expense limitations.

 

3  |

NATIXIS U.S. EQUITY OPPORTUNITIES FUND

 

Managers   Symbols
William C. Nygren, CFA®   Class A    NEFSX
Robert F. Bierig*   Class C    NECCX
M. Colin Hudson, CFA®**   Class N    NESNX
Michael J. Mangan, CFA®, CPA   Class Y    NESYX
Michael A. Nicolas, CFA®     
Harris Associates L.P.     
  
Aziz V. Hamzaogullari, CFA®     
Loomis, Sayles & Company, L.P.     

 

*

Effective August 1, 2022, Robert F. Bierig serves as portfolio manager of the Fund.

**

Effective August 1, 2022, M. Colin Hudson no longer serves as portfolio manager of the Fund.

 

 

Investment Goal

The Fund seeks long-term growth of capital.

 

 

 

Average Annual Total Returns — June 30, 20224

 

             
     6 Months     1 Year     5 Years     10 Years     Life of
Class N		     Expense Ratios5  
  Gross     Net  
     
Class Y                
NAV     -24.67 %      -21.69 %      9.39 %      13.43 %      — %      0.89 %      0.89 % 
     
Class A                
NAV     -24.77       -21.89       9.12       13.15       —       1.14       1.14  
With 5.75% Maximum Sales Charge     -29.10       -26.38       7.84       12.48       —        
     
Class C                
NAV     -25.04       -22.44       8.32       12.47       —       1.89       1.89  
With CDSC1     -25.73       -23.07       8.32       12.47       —        
     
Class N (Inception 5/1/17)                
NAV     -24.64       -21.64       9.50       —       10.09       1.38       0.83  
   
Comparative Performance                
S&P 500® Index2     -19.96       -10.62       11.31       12.96       11.28        
Russell 1000® Index3     -20.94       -13.04       11.00       12.82       10.97                  

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com/performance. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

 

1

Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase and includes automatic conversion to Class A shares after eight years.

 

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

Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000® Index represents approximately 92% of the U.S. market and is constructed to provide a comprehensive and unbiased barometer for the large-cap segment and is completely reconstituted annually to ensure new and growing equities are reflected.

 

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 4/30/23. 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.

 

|  4

VAUGHAN NELSON MID CAP FUND

 

Managers   Symbols
Dennis G. Alff, CFA®   Class A    VNVAX
Chad D. Fargason   Class C    VNVCX
Chris D. Wallis, CFA®   Class N    VNVNX
Vaughan Nelson Investment Management, L.P.   Class Y    VNVYX

 

 

Investment Goal

The Fund seeks long-term capital appreciation.

 

 

Average Annual Total Returns — June 30, 20223

 

             
     

6 Months

     

1 Year

      5 Years     

10 Years

     

Life of
Class N

      Expense Ratios4  
   Gross      Net  
     
Class Y                       
NAV      -14.40 %       -11.26 %       6.64 %       9.69 %       — %       0.96 %       0.90 % 
     
Class A                       
NAV      -14.47        -11.49        6.37        9.42        —        1.21        1.15  
With 5.75% Maximum Sales Charge      -19.37        -16.58        5.12        8.77        —          
     
Class C                       
NAV      -14.80        -12.15        5.58        8.77        —        1.96        1.90  
With CDSC1      -15.63        -12.88        5.58        8.77        —          
     
Class N (Inception 5/1/13)                       
NAV      -14.38        -11.23        6.72        —        8.15        0.87        0.85  
   
Comparative Performance                       
Russell Midcap® Value Index2      -16.23        -10.00        6.27        10.62        8.89                    

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com/performance. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

 

1

Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase and includes automatic conversion to Class A shares after eight years.

 

2

Russell Midcap® Value Index is an unmanaged index that measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap® Index companies with lower price-to-book ratios and lower forecasted growth values.

 

3

Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

 

4

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense limitations set to expire on 4/30/23. 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.

 

5  |

VAUGHAN NELSON SMALL CAP VALUE FUND

 

Managers   Symbols
Chris D. Wallis, CFA®   Class A    NEFJX
Stephen Davis, CFA®   Class C    NEJCX
James Eisenman, CFA®*   Class N    VSCNX
Vaughan Nelson Investment Management, L.P.  

Class Y    NEJYX

 

*

Effective May 1, 2022, James Eisenman serves as a co-portfolio manager on the Fund.

 

 

Investment Goal

The Fund seeks capital appreciation.

 

 

Average Annual Total Returns — June 30, 20223

 

             
     

6 Months

     

1 Year

      5 Years     

10 Years

     

Life of
Class N

      Expense Ratios4  
   Gross      Net  
     
Class Y                       
NAV      -12.89 %       -5.59 %       7.41 %       10.84 %       — %       1.16 %       1.00 % 
     
Class A                       
NAV      -13.00        -5.87        7.14        10.56        —        1.41        1.25  
With 5.75% Maximum Sales Charge      -18.00        -11.30        5.88        9.91        —          
     
Class C

 

                    
NAV      -13.47        -6.67        6.31        9.90        —        2.17        2.00  
With CDSC1      -14.28        -7.24        6.31        9.90        —          
     
Class N (Inception 5/1/17)                       
NAV      -12.89        -5.59        7.52        —        7.11        1.17        0.95  
   
Comparative Performance                       
Russell 2000® Value Index2      -17.31        -16.28        4.89        9.05        4.68                    

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com/performance. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

 

1

Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase and includes automatic conversion to Class A shares after eight years.

 

2

Russell 2000® Value Index is an unmanaged index that measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000® companies with lower price-to-book ratios and lower forecasted growth values.

 

3

Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

 

4

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense limitations set to expire on 4/30/23. 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.

 

|  6

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 from 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 the Natixis Funds’ proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the Natixis Funds’ website at im.natixis.com; and on the Securities and Exchange Commission’s (“SEC’s”) website at www.sec.gov. Information regarding how the Natixis Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available from the Natixis Funds’ website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

The Natixis Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the SEC’s website at www.sec.gov. First and third quarter schedules of portfolio holdings are also available at im.natixis.com/funddocuments. A hard copy may be requested from the Fund at no charge by calling 800-225-5478.

CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.

 

7  |

UNDERSTANDING FUND EXPENSES

As a mutual fund shareholder, you incur different costs: transaction costs, including sales charges (loads) on purchases and 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 Funds’ prospectus. The following examples are intended to help you understand the ongoing costs of investing in the Funds and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table of each class of Fund shares shows the actual account values and actual Fund expenses you would have paid on a $1,000 investment in the Fund from January 1, 2022 through June 30, 2022. 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 in the table for each class of fund shares 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 funds. If transaction costs were included, total costs would be higher.

 

LOOMIS SAYLES INTERNATIONAL GROWTH FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $788.90        $5.32  
Hypothetical (5% return before expenses)      $1,000.00        $1,018.84        $6.01  
Class C           
Actual      $1,000.00        $785.50        $8.63  
Hypothetical (5% return before expenses)      $1,000.00        $1,015.13        $9.74  
Class N           
Actual      $1,000.00        $789.10        $3.99  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.33        $4.51  
Class Y           
Actual      $1,000.00        $789.10        $4.21  
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).

 

|  8

NATIXIS OAKMARK FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $804.80        $4.70  
Hypothetical (5% return before expenses)      $1,000.00        $1,019.59        $5.26  
Class C           
Actual      $1,000.00        $801.70        $8.04  
Hypothetical (5% return before expenses)      $1,000.00        $1,015.87        $9.00  
Class N           
Actual      $1,000.00        $806.00        $3.36  
Hypothetical (5% return before expenses)      $1,000.00        $1,021.08        $3.76  
Class Y           
Actual      $1,000.00        $805.70        $3.58  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.83        $4.01  

 

*

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.05%, 1.80%, 0.75% and 0.80% 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).

 

NATIXIS OAKMARK INTERNATIONAL FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $807.30        $5.15  
Hypothetical (5% return before expenses)      $1,000.00        $1,019.09        $5.76  
Class C           
Actual      $1,000.00        $804.20        $8.50  
Hypothetical (5% return before expenses)      $1,000.00        $1,015.37        $9.49  
Class N           
Actual      $1,000.00        $809.00        $3.81  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.58        $4.26  
Class Y           
Actual      $1,000.00        $808.20        $4.04  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.33        $4.51  

 

*

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.15%, 1.90%, 0.85% and 0.90% 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).

 

9  |

NATIXIS U.S. EQUITY OPPORTUNITIES FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $752.30        $4.95  
Hypothetical (5% return before expenses)      $1,000.00        $1,019.14        $5.71  
Class C           
Actual      $1,000.00        $749.60        $8.20  
Hypothetical (5% return before expenses)      $1,000.00        $1,015.42        $9.44  
Class N           
Actual      $1,000.00        $753.60        $3.61  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.68        $4.16  
Class Y           
Actual      $1,000.00        $753.30        $3.87  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.38        $4.46  

 

*

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.14%, 1.89%, 0.83% and 0.89% 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).

 

VAUGHAN NELSON MID CAP FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $855.30        $5.29  
Hypothetical (5% return before expenses)      $1,000.00        $1,019.09        $5.76  
Class C           
Actual      $1,000.00        $852.00        $8.72  
Hypothetical (5% return before expenses)      $1,000.00        $1,015.37        $9.49  
Class N           
Actual      $1,000.00        $856.20        $3.91  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.58        $4.26  
Class Y           
Actual      $1,000.00        $856.00        $4.14  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.33        $4.51  

 

*

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.15%, 1.90%, 0.85% and 0.90% for Class A, C, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), divided by 365 (to reflect the half-year period).

 

|  10

VAUGHAN NELSON SMALL CAP VALUE FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $870.00        $5.80  
Hypothetical (5% return before expenses)      $1,000.00        $1,018.60        $6.26  
Class C           
Actual      $1,000.00        $865.30        $9.25  
Hypothetical (5% return before expenses)      $1,000.00        $1,014.88        $9.99  
Class N           
Actual      $1,000.00        $871.10        $4.41  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.08        $4.76  
Class Y           
Actual      $1,000.00        $871.10        $4.64  
Hypothetical (5% return before expenses)      $1,000.00        $1,019.84        $5.01  

 

*

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.25%, 2.00%, 0.95% and 1.00% for Class A, C, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), divided by 365 (to reflect the half-year period).

 

11  |

BOARD APPROVAL OF THE EXISTING ADVISORY AND SUB-ADVISORY AGREEMENTS

The Board of Trustees of the Trusts (the “Board”), including the Independent Trustees, considers matters bearing on each Fund’s advisory agreement and, with respect to Natixis Oakmark Fund, Natixis Oakmark International Fund, Natixis U.S. Equity Opportunities Fund, Vaughan Nelson Mid Cap Fund, and Vaughan Nelson Small Cap Value Fund, sub-advisory agreement (collectively, the “Agreements”) at most of its meetings throughout the year. Each year, usually in the spring, the Contract Review Committee of the Board meets to review the Agreements to determine whether to recommend that the full Board approve the continuation of the Agreements, typically for an additional one-year period. This meeting typically includes all the Independent Trustees, including the Trustees who do not serve on the Contract Review Committee. 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 at its June Board meeting.

In connection with these meetings, the Trustees receive materials that the Funds’ investment advisers and sub-advisers, as applicable (collectively, the “Advisers”) believe to be reasonably necessary for the Trustees to evaluate the Agreements. These materials generally include, among other items, (i) information on the investment performance of the Funds and the performance of peer groups of funds and the Funds’ performance benchmarks, (ii) information on the Funds’ advisory and sub-advisory fees and other expenses, including information comparing the Funds’ advisory and sub-advisory fees to the fees charged to institutional accounts with similar strategies managed by the Advisers, if any, and to those of peer groups of funds and information about any applicable expense limitations and/or fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Advisers, including how profitability is determined for the Funds, and (v) information obtained through the completion by the Advisers of a questionnaire distributed on behalf of the Trustees. The Board, including the Independent Trustees, also considers other matters such as (i) each Fund’s investment objective and strategies and the size, education and experience of the Advisers’ respective investment staffs and their use of technology, external research and trading cost measurement tools, (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, allocations to brokers affiliated with the Advisers and the use of “soft” commission dollars to pay for research and other similar services, (iv) each Adviser’s policies and procedures relating to, among other things, compliance, trading and best execution, proxy voting, liquidity 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 Advisers.

In addition to the materials requested by the Trustees in connection with their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board that provide detailed information about the Funds’ investment performance and the fees charged to the Funds for advisory and other services. This information generally includes, where available, 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 of funds, total return information for various periods, third-party performance rankings for various periods comparing a Fund against similarly categorized funds, and performance ratings provided by a different third-party rating organization. The portfolio management team for each Fund or other representatives of the Advisers make periodic presentations to the Contract Review Committee and/or the full Board, and Funds identified as presenting possible performance concerns may be subject to more frequent Board or Committee presentations and reviews. In addition, the Trustees are periodically provided with detailed statistical information about each Fund’s portfolio. The Trustees also receive periodic updates between meetings, both at the Board and at the Committee level.

The Board most recently approved the continuation of the Agreements for a one-year period at its meeting held in June 2022. In the case of Natixis U.S. Equity Opportunities Fund, the Board approved the Agreement with an amendment that reduced the Fund’s advisory fee effective July 1, 2022. In considering whether to approve the continuation of the Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

The nature, extent and quality of the services provided to the Funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by the Advisers and their affiliates to the Funds and the resources dedicated to the Funds by the Advisers and their affiliates. The Trustees also considered their experience with other funds advised or sub-advised by the Adviser, as well as the affiliation between the Adviser and Natixis Investment Managers, LLC, whose affiliates provide investment advisory services to other funds in the Natixis family of funds.

The Trustees considered not only the advisory services provided by the Advisers to the Funds, but also the benefits to the Funds from the monitoring and oversight services provided by Natixis Advisors, LLC (“Natixis Advisors”). They also considered the administrative and shareholder services provided by Natixis Advisors and its affiliates to the Funds. They also took into consideration increases in the services provided resulting from new regulatory requirements, such as new rules relating to the fair valuation of investments and the use of derivatives.

 

|  12

For each Fund, the Trustees also considered the benefits to shareholders of investing in a mutual fund that is part of a family of funds that offers shareholders the right to exchange shares of one type of fund for shares of another type of fund, and provides a variety of fund and shareholder services.

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the nature, extent and quality of services provided supported the renewal of the Agreements.

Investment performance of the Funds and the Advisers. As noted above, the Trustees received information about the performance of the Funds over various time periods, including information that compared the performance of the Funds to the performance of peer groups and categories of funds and the Funds’ respective performance benchmarks. The Trustees also received information about how comparative peer groups are constructed. In addition, 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, 2021, each Existing Fund’s one-, three- and five-year performance, as applicable, stated as percentile rankings within categories selected by the independent third-party data provider, was as follows (where the best performance would be in the first percentile of its category):

 

      One-Year      Three-Year      Five-Year  
Loomis Sayles International Growth Fund      96 %       N/A        N/A  
Natixis Oakmark Fund      4 %       2 %       4 % 
Natixis Oakmark International Fund      82 %       25 %       47 % 
Natixis U.S. Equity Opportunities Fund      81 %       31 %       17 % 
Vaughan Nelson Mid Cap Fund      74 %       62 %       83 % 
Vaughan Nelson Small Cap Value Fund      14 %       30 %       68 % 

In the case of each Fund that had performance that lagged that of a relevant category median as determined by the independent third-party for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Agreements. These factors included one or more of the following: (1) that the underperformance was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Adviser that were reasonable and consistent with the Fund’s investment objective and policies; (2) that the Fund’s more recent relative performance (i.e., for periods ending March 31, 2022) had improved; (3) that the Fund’s long-term (10-year) performance was stronger relative to its category; (4) the Adviser’s deep value investment strategy was expected to result in cyclical underperformance from time to time; (5) that effective August 31, 2021, the Fund had been assigned to a different category by the independent third-party data provider, which has resulted in significantly improved relative performance and is expected to result in more relevant performance comparisons; and (6) that the Fund outperformed its relevant benchmark for the 3-year period. The Board also considered information about the Funds’ more recent performance, including how that performance had been impacted by the Covid-19 crisis.

The Trustees also considered each Adviser’s performance and reputation generally, the performance of the fund family generally, and the historical responsiveness of the Advisers to Trustee concerns about performance and the willingness of the Advisers to take steps intended to improve performance.

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the performance of the Funds and the Advisers and/or other relevant factors supported the renewal of the Agreements.

The costs of the services to be provided and profits to be realized by the Advisers and their affiliates from their respective relationships with the Funds. The Trustees considered the fees charged to the Funds for advisory, sub-advisory and administrative services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Advisers to comparable accounts (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets, the greater regulatory costs associated with the management of such assets, and the entrepreneurial, regulatory and other risks associated with sponsoring and managing mutual funds. In evaluating each Fund’s advisory and sub-advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund, and the need for the Advisers to offer competitive compensation and the potential need to expend additional resources to the extent the Fund grows in size. The Trustees considered that over the past several years, management had demonstrated its intention to have competitive fee levels by making recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense limitations for

 

13  |

various funds in the fund family. They noted that all of the Funds included have expense limitations in place, and they considered the amounts waived or reimbursed by the Adviser for all of the Funds under their expense limitation agreements. They further noted that management had proposed to reduce the expense limitations for Natixis U.S. Equity Opportunities Fund on all share classes, effective as of July 1, 2022. The Trustees also noted that management had proposed to reduce the advisory fee rate for Natixis U.S. Equity Opportunities Fund. The Trustees further noted that the Loomis Sayles International Growth Fund had a total advisory fee rate that was below the median of its peer group of funds.

The Trustees noted that certain of the Funds had total advisory fee rates that were above the median of a peer group of funds. In this regard, the Trustees considered the factors that management believed justified such relatively higher advisory fee rates, including: (1) that the advisory fee rate of the Fund had been reduced effective July 1, 2021 and the comparison against the peer group did not reflect the full impact of that; (2) that management had proposed to reduce the expense limitations of the Fund; (3) that management had proposed to reduce the advisory fee of the Fund; (4) that the advisory fee was only one basis point higher than the median of a peer group of funds; and (5) the quality of the services and the reputation and performance of the portfolio management team.

The Trustees also considered the compensation directly or indirectly received by the Advisers and their affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Advisers’ and their affiliates’ relationships with the Funds, and information about how expenses are determined and allocated for purposes of profitability calculations. They also reviewed information provided by management about the effect of distribution costs and changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser compensation or profitability were issues, the performance of the relevant Funds, the expense levels of the Funds, whether the Advisers had implemented breakpoints and/or expense limitations with respect to such Funds and the overall profit margin of Natixis Investment Managers, LLC compared to that of certain other investment managers for which such data was available.

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the advisory fees charged to each of the Funds were fair and reasonable, and that the costs of these services generally and the related profitability of the Advisers and their affiliates in respect of their relationships with the Funds supported the renewal of the Agreements.

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Advisers and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense limitations. 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 limitations. With respect to economies of scale, the Trustees noted that Natixis Oakmark Fund, Natixis Oakmark International Fund and Vaughan Nelson Mid Cap Fund had breakpoints in their advisory fees and that each of the Funds was subject to an expense limitation. The Trustees also considered management’s proposal to reduce the expense limitations for Natixis U.S. Equity Opportunities Fund. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and on a relative basis) and the profitability to the Advisers and their affiliates of their relationships with the Funds, as discussed above. The Trustees also considered that the Funds have benefitted from the substantial reinvestment certain Advisers had made into their businesses.

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, including but not limited to the Covid-19 crisis and its significant disruptions to the economy and business operations, as well as more recent market volatility, on the performance, asset levels and expense ratios of each Fund.

 

•  

Whether each Fund has operated in accordance with its investment objective and the Fund’s record of compliance with its investment restrictions, and the compliance programs of the Funds and the Advisers. They also considered the compliance-related resources the Advisers and their affiliates were providing to the Funds.

 

•  

So-called “fallout benefits” to the Advisers, such as the engagement of affiliates of the Advisers to provide distribution and administrative services to the Funds, and the benefits of research made available to the Advisers by reason of brokerage commissions (if any) generated by the Funds’ securities transactions. The Trustees also considered the benefits to the parent company of Natixis Advisors from the retention of the 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.

 

•  

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.

 

|  14

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, including the reduction in the advisory fee for Natixis U.S. Equity Opportunities Fund described above, should be continued through June 30, 2023.

 

15  |

LIQUIDITY RISK MANAGEMENT PROGRAM

Annual Report for the Period Commencing on January 1, 2021 and ending December 31, 2021 (including updates through June 30, 2022)

Effective December 1, 2018 (December 15, 2020 for the Loomis Sayles International Growth Fund), the Funds adopted a liquidity risk management program (the “Program”) pursuant to the requirements of Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Rule”). The Rule requires registered open-end funds, including mutual funds and exchange-traded funds to establish liquidity risk management programs in order to effectively manage fund liquidity and mitigate the risk that a fund could not meet redemption requests without significantly diluting the interests of remaining investors.

The rule requires the Funds to assess, manage and review their liquidity risk considering applicable factors during normal and foreseeable stressed conditions. In fulfilling this requirement, each Fund assesses and reviews (where applicable and amongst other matters) its investment strategy, portfolio holdings, possible investment concentrations, use of derivatives, short-term and long-term cash flow projections, use of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Each Program has established a Program Administrator (“Administrator”) which is the adviser or sub-adviser of the Fund.

In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.

Each Fund is prohibited from acquiring an investment if, after the acquisition, its holdings of illiquid assets will exceed 15% of its net assets. If a Fund does not hold a majority of highly liquid investments in its portfolio, then the Fund is required to establish a highly liquid investment minimum (“HLIM”). None of the Funds has established an HLIM.

During the period from January 1, 2021 to December 31, 2021, there were no material changes to the Programs and no material events that impacted the operation of the Funds’ Programs. During the period, the Funds held sufficient liquid assets to meet redemptions on a timely basis and did not have any illiquid security violations.

During the period January 1, 2022 through June 30, 2022, the Funds held sufficient liquid assets to meet redemptions on a timely basis and did not have any illiquid security violations.

Annual Program Assessment and Conclusion

In the opinion of the Program Administrators, the Program of each Fund approved by the Funds’ Board is operating effectively. The Program Administrators have also monitored, assessed and managed each Fund’s liquidity risk regularly throughout the period.

Pursuant to the Rule’s requirements, the Board has received and reviewed a written report prepared by each Fund’s Program Administrator that addressed the operation of the Programs, assessed their adequacy and effectiveness and described any material changes made to the Programs.

 

|  16

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Loomis Sayles International Growth Fund

 

Shares

      Description    Value (†)  
  Common Stocks — 97.5% of Net Assets  
   Australia — 4.5%

 

  36,354      WiseTech Global Ltd.    $ 953,283  
     

 

 

  
   Belgium — 2.2%

 

  8,851      Anheuser-Busch InBev S.A.      476,644  
     

 

 

  
   Brazil — 7.6%

 

  345,114      Ambev S.A., ADR      866,236  
  1,163      MercadoLibre, Inc.(a)      740,680  
     

 

 

  
        1,606,916  
     

 

 

  
   Canada — 1.6%

 

  11,000      Shopify, Inc., Class A(a)      343,640  
     

 

 

  
   China — 28.9%

 

  3,739      Alibaba Group Holding Ltd., Sponsored ADR(a)(b)      425,049  
  4,601      Baidu, Inc., Sponsored ADR(a)(b)      684,307  
  64,400      Budweiser Brewing Co. APAC Ltd., 144A      193,245  
  507,500      Dali Foods Group Co. Ltd., 144A      269,927  
  3,400      Kweichow Moutai Co. Ltd., Class A      1,040,169  
  3,961      NXP Semiconductors NV      586,347  
  24,100      Tencent Holdings Ltd.(b)      1,090,890  
  26,757      Trip.com Group Ltd., ADR(a)(b)      734,480  
  45,796      Vipshop Holdings Ltd., ADR(a)(b)      452,922  
  13,499      Yum China Holdings, Inc.      654,701  
     

 

 

  
        6,132,037  
     

 

 

  
   Denmark — 4.8%

 

  9,100      Novo Nordisk A/S, Class B      1,009,211  
     

 

 

  
   France — 4.7%

 

  2,735      EssilorLuxottica S.A.      414,661  
  8,124      Sodexo S.A.      574,645  
     

 

 

  
        989,306  
     

 

 

  
   Germany — 2.6%

 

  6,108      SAP SE      556,747  
     

 

 

  
   Japan — 4.9%

 

  5,400      FANUC Corp.      846,392  
  5,600      Unicharm Corp.      187,920  
     

 

 

  
        1,034,312  
     

 

 

  
   Macau — 1.2%

 

  41,000      Galaxy Entertainment Group Ltd.      245,613  
     

 

 

  
   Netherlands — 3.9%

 

  567      Adyen NV, 144A(a)      818,256  
     

 

 

  
   Switzerland — 7.8%

 

  7,615      CRISPR Therapeutics AG(a)      462,764  
  14,030      Novartis AG, (Registered)      1,189,471  
     

 

 

  
        1,652,235  
     

 

 

  
   United Kingdom — 9.8%

 

  7,109      Diageo PLC      307,057  
  19,599      Experian PLC      575,442  
  9,262      Reckitt Benckiser Group PLC      696,616  
  11,140      Unilever PLC      505,983  
     

 

 

  
        2,085,098  
     

 

 

  
   United States — 13.0%

 

  5,601      Block, Inc.(a)      344,237  
  11,908      Doximity, Inc., Class A(a)      414,637  
  7,515      Nestle S.A., (Registered)      878,298  
  3,318      Roche Holding AG      1,109,207  
     

 

 

  
        2,746,379  
     

 

 

  
  

Total Common Stocks

(Identified Cost $27,194,320)

      20,649,677  
     

 

 

  
     

Principal

Amount

      Description    Value (†)  
  Short-Term Investments — 2.3%  
$ 495,628     

Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $495,633 on 7/01/2022 collateralized by $503,300 U.S. Treasury Note, 3.250% due 6/30/2027 valued at $505,581 including accrued interest (Note 2 of Notes to Financial Statements)

(Identified Cost $495,628)

    $ 495,628  
     

 

 

  
     
  

Total Investments — 99.8%

(Identified Cost $27,689,948)

      21,145,305  
   Other assets less liabilities — 0.2%      41,806  
     

 

 

  
   Net Assets — 100.0%    $ 21,187,111  
     

 

 

  
     
  (†)      See Note 2 of Notes to Financial Statements.

 

  (a)      Non-income producing security.

 

  (b)      Security invests in variable interest entities based in China.

 

     
  144A      All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2022, the value of Rule 144A holdings amounted to $1,281,428 or 6.0% of net assets.

 

  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.

 

Industry Summary at June 30, 2022 (Unaudited)

 

Pharmaceuticals

      15.6 % 

Beverages

      13.5  

Hotels, Restaurants & Leisure

      10.5  

Interactive Media & Services

      8.3  

Internet & Direct Marketing Retail

      7.6  

Software

      7.1  

IT Services

      7.1  

Food Products

      5.5  

Household Products

      4.2  

Machinery

      4.0  

Semiconductors & Semiconductor Equipment

      2.8  

Professional Services

      2.7  

Personal Products

      2.4  

Biotechnology

      2.2  

Textiles, Apparel & Luxury Goods

      2.0  

Health Care Technology

      2.0  

Short-Term Investments

      2.3  
  

 

 

  

Total Investments

      99.8  

Other assets less liabilities

      0.2  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

Currency Exposure Summary at June 30, 2022 (Unaudited)

 

United States Dollar

      34.0 % 

Euro

      15.8  

Swiss Franc

      15.0  

Hong Kong Dollar

      8.5  

British Pound

      7.4  

Yuan Renminbi

      4.9  

Japanese Yen

      4.9  

Danish Krone

      4.8  

Australian Dollar

      4.5  
  

 

 

  

Total Investments

      99.8  

Other assets less liabilities

      0.2  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

17  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Natixis Oakmark Fund

 

Shares      Description    Value (†)  
  Common Stocks — 94.0% of Net Assets  
   Auto Components — 1.5%

 

  185,367      BorgWarner, Inc.    $ 6,185,697  
     

 

 

  
   Automobiles — 2.2%

 

  281,560      General Motors Co.(a)      8,942,346  
     

 

 

  
   Banks — 5.9%

 

  198,236      Bank of America Corp.      6,171,087  
  220,418      Citigroup, Inc.      10,137,024  
  212,404      Wells Fargo & Co.      8,319,864  
     

 

 

  
        24,627,975  
     

 

 

  
   Biotechnology — 1.0%

 

  6,947      Regeneron Pharmaceuticals, Inc.(a)      4,106,580  
     

 

 

  
   Building Products — 1.1%

 

  92,600      Masco Corp.      4,685,560  
     

 

 

  
   Capital Markets — 13.1%

 

  169,082      Bank of New York Mellon Corp. (The)      7,052,410  
  168,339      Charles Schwab Corp. (The)      10,635,658  
  28,298      Goldman Sachs Group, Inc. (The)      8,405,072  
  70,810      Intercontinental Exchange, Inc.      6,658,973  
  211,810      KKR & Co., Inc.      9,804,685  
  12,221      Moody’s Corp.      3,323,745  
  138,666      State Street Corp.      8,548,759  
     

 

 

  
        54,429,302  
     

 

 

  
   Consumer Finance — 6.9%

 

  390,354      Ally Financial, Inc.      13,080,763  
  43,473      American Express Co.      6,026,227  
  89,906      Capital One Financial Corp.      9,367,306  
     

 

 

  
        28,474,296  
     

 

 

  
   Electronic Equipment, Instruments & Components — 0.7%

 

  26,565      TE Connectivity Ltd.      3,005,830  
     

 

 

  
   Entertainment — 4.5%

 

  48,826      Netflix, Inc.(a)      8,538,203  
  50,097      Take-Two Interactive Software, Inc.(a)      6,138,385  
  42,200      Walt Disney Co. (The)(a)      3,983,680  
     

 

 

  
        18,660,268  
     

 

 

  
   Health Care Providers & Services — 2.5%

 

  44,219      HCA Healthcare, Inc.      7,431,445  
  6,298      Humana, Inc.      2,947,905  
     

 

 

  
        10,379,350  
     

 

 

  
   Hotels, Restaurants & Leisure — 2.5%

 

  3,583      Booking Holdings, Inc.(a)      6,266,631  
  38,528      Hilton Worldwide Holdings, Inc.      4,293,560  
     

 

 

  
        10,560,191  
     

 

 

  
   Household Durables — 1.3%

 

  131,000      PulteGroup, Inc.      5,191,530  
     

 

 

  
   Industrial Conglomerates — 1.1%

 

  69,124      General Electric Co.      4,401,125  
     

 

 

  
   Insurance — 5.2%

 

  163,435      American International Group, Inc.      8,356,431  
  43,537      Reinsurance Group of America, Inc.      5,106,455  
  41,363      Willis Towers Watson PLC      8,164,643  
     

 

 

  
        21,627,529  
     

 

 

  
   Interactive Media & Services — 7.7%

 

  6,056      Alphabet, Inc., Class A(a)      13,197,599  
  65,566      Meta Platforms, Inc., Class A(a)      10,572,517  
  442,200      Pinterest, Inc., Class A(a)      8,030,352  
     

 

 

  
        31,800,468  
     

 

 

  
   Internet & Direct Marketing Retail — 4.1%

 

  74,600      Amazon.com, Inc.(a)    $ 7,923,266  
  135,565      eBay, Inc.      5,648,993  
  44,200      Etsy, Inc.(a)      3,235,882  
     

 

 

  
        16,808,141  
     

 

 

  
   IT Services — 5.5%

 

  112,069      Fiserv, Inc.(a)      9,970,779  
  31,166      Gartner, Inc.(a)      7,536,874  
  48,500      Global Payments, Inc.      5,366,040  
     

 

 

  
        22,873,693  
     

 

 

  
   Machinery — 3.1%

 

  17,771      Cummins, Inc.      3,439,222  
  58,966      PACCAR, Inc.      4,855,260  
  18,200      Parker-Hannifin Corp.      4,478,110  
     

 

 

  
        12,772,592  
     

 

 

  
   Media — 4.4%

 

  22,664      Charter Communications, Inc., Class A(a)      10,618,764  
  195,542      Comcast Corp., Class A      7,673,068  
     

 

 

  
        18,291,832  
     

 

 

  
   Oil, Gas & Consumable Fuels — 9.5%

 

  325,372      APA Corp.      11,355,483  
  93,177      ConocoPhillips      8,368,226  
  42,212      Diamondback Energy, Inc.      5,113,984  
  132,477      EOG Resources, Inc.      14,630,760  
     

 

 

  
        39,468,453  
     

 

 

  
   Professional Services — 1.6%

 

  36,800      Equifax, Inc.      6,726,304  
     

 

 

  
   Real Estate Management & Development — 1.8%

 

  98,818      CBRE Group, Inc., Class A(a)      7,273,993  
     

 

 

  
   Software — 4.1%

 

  65,600      Oracle Corp.      4,583,472  
  46,200      Salesforce, Inc.(a)      7,624,848  
  34,880      Workday, Inc., Class A(a)      4,868,550  
     

 

 

  
        17,076,870  
     

 

 

  
   Tobacco — 1.7%

 

  165,214      Altria Group, Inc.      6,900,989  
     

 

 

  
   Wireless Telecommunication Services — 1.0%

 

  29,458      T-Mobile US, Inc.(a)      3,963,279  
     

 

 

  
  

Total Common Stocks

(Identified Cost $409,469,610)

      389,234,193  
     

 

 

  
     

Principal

Amount

          
  Short-Term Investments — 2.1%  
$ 8,774,149     

Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $8,774,234 on 7/01/2022 collateralized by $8,909,300 U.S. Treasury Note, 3.250% due 6/30/2027 valued at 8,949,668 including accrued interest (Note 2 of Notes to Financial Statements)

(Identified Cost $8,774,149)

      8,774,149  
     

 

 

  
     
  

Total Investments — 96.1%

(Identified Cost $418,243,759)

      398,008,342  
   Other assets less liabilities — 3.9%      16,197,560  
     

 

 

  
   Net Assets — 100.0%    $ 414,205,902  
     

 

 

  
     
  (†)      See Note 2 of Notes to Financial Statements.

 

  (a)      Non-income producing security.

 

 

See accompanying notes to financial statements.

 

|  18

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Natixis Oakmark Fund – (continued)

 

Industry Summary at June 30, 2022 (Unaudited)

 

Capital Markets

      13.1 % 

Oil, Gas & Consumable Fuels

      9.5  

Interactive Media & Services

      7.7  

Consumer Finance

      6.9  

Banks

      5.9  

IT Services

      5.5  

Insurance

      5.2  

Entertainment

      4.5  

Media

      4.4  

Software

      4.1  

Internet & Direct Marketing Retail

      4.1  

Machinery

      3.1  

Hotels, Restaurants & Leisure

      2.5  

Health Care Providers & Services

      2.5  

Automobiles

      2.2  

Other Investments, less than 2% each

      12.8  

Short-Term Investments

      2.1  
  

 

 

  

Total Investments

      96.1  

Other assets less liabilities

      3.9  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

    

 

See accompanying notes to financial statements.

 

19  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Natixis Oakmark International Fund

 

Shares      Description    Value (†)  
  Common Stocks — 95.1% of Net Assets  
   Australia — 1.6%

 

  398,700      Brambles Ltd.    $ 2,948,105  
  291,820      Orica Ltd.      3,192,711  
     

 

 

  
        6,140,816  
     

 

 

  
   Belgium — 1.8%

 

  127,600      Anheuser-Busch InBev S.A.      6,871,507  
     

 

 

  
   Canada — 2.3%

 

  140,000      Open Text Corp.      5,295,680  
  73,499      Restaurant Brands International, Inc.      3,685,975  
     

 

 

  
        8,981,655  
     

 

 

  
   China — 7.9%

 

  667,300      Alibaba Group Holding Ltd.(a)      9,519,289  
  222,775      Prosus NV      14,425,480  
  81,896      Trip.com Group Ltd.(a)      2,266,098  
  464,296      Vipshop Holdings Ltd., ADR(a)      4,591,887  
     

 

 

  
        30,802,754  
     

 

 

  
   Finland — 0.6%

 

  80,100      UPM-Kymmene OYJ      2,456,130  
     

 

 

  
   France — 13.7%

 

  235,305      Accor S.A.(a)      6,419,485  
  243,491      BNP Paribas S.A.      11,646,651  
  22,000      Capgemini SE      3,794,122  
  88,300      Danone S.A.      4,944,993  
  68,800      Edenred      3,259,098  
  7,170      Kering S.A.      3,715,686  
  132,698      Publicis Groupe S.A.      6,526,156  
  264,612      Valeo S.A.      5,156,219  
  210,900      Worldline S.A., 144A(a)      7,866,438  
     

 

 

  
        53,328,848  
     

 

 

  
   Germany — 25.2%

 

  36,900      Adidas AG      6,554,580  
  54,010      Allianz SE, (Registered)      10,354,265  
  166,030      Bayer AG, (Registered)      9,914,707  
  133,600      Bayerische Motoren Werke AG      10,356,751  
  135,659      Continental AG      9,521,737  
  243,907      Daimler Truck Holding AG(a)      6,423,505  
  109,200      Fresenius Medical Care AG & Co. KGaA      5,471,039  
  230,400      Fresenius SE & Co. KGaA      7,006,859  
  92,600      Henkel AG & Co. KGaA      5,689,372  
  167,914      Mercedes-Benz Group AG, (Registered)      9,752,163  
  77,900      SAP SE      7,100,616  
  55,600      Siemens AG, (Registered)      5,715,485  
  814,100      thyssenkrupp AG(a)      4,642,240  
     

 

 

  
        98,503,319  
     

 

 

  
   Hong Kong — 1.6%

 

  504,000      Prudential PLC      6,269,373  
     

 

 

  
   India — 0.9%

 

  448,175      Axis Bank Ltd.(a)      3,630,249  
     

 

 

  
   Ireland — 1.4%

 

  79,238      Ryanair Holdings PLC, Sponsored ADR(a)      5,328,756  
     

 

 

  
   Italy — 3.1%

 

  6,412,300      Intesa Sanpaolo SpA      12,000,420  
  70,000      Intesa Sanpaolo SpA      131,505  
     

 

 

  
        12,131,925  
     

 

 

  
   Japan — 1.4%

 

  126,200      Komatsu Ltd.      2,810,116  
  182,200      Toyota Motor Corp.      2,811,219  
     

 

 

  
        5,621,335  
     

 

 

  
   Korea — 1.3%

 

  26,950      NAVER Corp.    $ 5,026,892  
     

 

 

  
   Mexico — 0.9%

 

  449,200      Grupo Televisa SAB, Sponsored ADR      3,674,456  
     

 

 

  
   Netherlands — 3.2%

 

  124,244      EXOR NV      7,764,002  
  228,038      Koninklijke Philips NV      4,891,079  
     

 

 

  
        12,655,081  
     

 

 

  
   Spain — 1.3%

 

  88,230      Amadeus IT Group S.A.(a)      4,940,363  
     

 

 

  
   Sweden — 4.5%

 

  567,704      H & M Hennes & Mauritz AB, B Shares      6,813,946  
  400,203      SKF AB, B Shares      5,937,523  
  312,300      Volvo AB, B Shares      4,859,195  
     

 

 

  
        17,610,664  
     

 

 

  
   Switzerland — 9.8%

 

  25,600      Cie Financiere Richemont S.A., (Registered)      2,753,615  
  1,588,739      Credit Suisse Group AG, (Registered)      9,068,280  
  1,476,080      Glencore PLC      7,995,093  
  173,121      Holcim AG, (Registered)      7,425,078  
  68,200      Novartis AG, (Registered)      5,782,036  
  6,000      Roche Holding AG      2,005,799  
  14,099      Swatch Group AG (The)      3,349,055  
     

 

 

  
        38,378,956  
     

 

 

  
   United Kingdom — 12.6%

 

  597,462      CNH Industrial NV      6,909,857  
  108,400      Compass Group PLC      2,225,602  
  529,177      Informa PLC(a)      3,418,807  
  248,532      Liberty Global PLC, Class A(a)      5,231,599  
  23,485,300      Lloyds Banking Group PLC      12,083,341  
  995,600      NatWest Group PLC      2,650,049  
  35,900      Reckitt Benckiser Group PLC      2,700,121  
  1,456,200      Rolls-Royce Holdings PLC(a)      1,481,917  
  198,489      Schroders PLC      6,484,093  
  127,700      Smiths Group PLC      2,183,781  
  398,200      WPP PLC      4,022,316  
     

 

 

  
        49,391,483  
     

 

 

  
  

Total Common Stocks

(Identified Cost $442,781,109)

      371,744,562  
     

 

 

  
     
  Preferred Stocks — 1.3%  
   Korea — 1.3%

 

  126,900     

Samsung Electronics Co. Ltd.,

2.085%, (KRW)

(Identified Cost $7,214,653)

      5,100,795  
     

 

 

  
     

Principal

Amount

                
  Short-Term Investments — 2.5%  
$ 9,684,913     

Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $9,685,007 on 7/01/2022 collateralized by $11,409,700 U.S. Treasury Note, 0.375% due 9/30/2027 valued at $9,878,694 including accrued interest (Note 2 of Notes to Financial Statements)

(Identified Cost $9,684,913)

      9,684,913  
     

 

 

  
     
  

Total Investments — 98.9%

(Identified Cost $459,680,675)

      386,530,270  
   Other assets less liabilities — 1.1%      4,443,182  
     

 

 

  
   Net Assets — 100.0%    $ 390,973,452  
     

 

 

  
     

 

See accompanying notes to financial statements.

 

|  20

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Natixis Oakmark International Fund – (continued)

 

  (†)      See Note 2 of Notes to Financial Statements.

 

  (a)      Non-income producing security.

 

     
  144A      All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2022, the value of Rule 144A holdings amounted to $7,866,438 or 2.0% of net assets.

 

  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.

 

  
  KRW      South Korean Won

 

Industry Summary at June 30, 2022 (Unaudited)

 

Banks

      10.8 % 

Internet & Direct Marketing Retail

      7.3  

Machinery

      6.8  

Automobiles

      5.9  

IT Services

      5.1  

Pharmaceuticals

      4.5  

Media

      4.5  

Textiles, Apparel & Luxury Goods

      4.3  

Insurance

      4.2  

Capital Markets

      3.9  

Auto Components

      3.7  

Hotels, Restaurants & Leisure

      3.7  

Metals & Mining

      3.2  

Health Care Providers & Services

      3.2  

Software

      3.2  

Household Products

      2.2  

Industrial Conglomerates

      2.0  

Diversified Financial Services

      2.0  

Other Investments, less than 2% each

      15.9  

Short-Term Investments

      2.5  
  

 

 

  

Total Investments

      98.9  

Other assets less liabilities

      1.1  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

Currency Exposure Summary at June 30, 2022 (Unaudited)

 

Euro

      54.4 % 

British Pound

      13.1  

United States Dollar

      8.2  

Swiss Franc

      7.8  

Swedish Krona

      4.5  

Hong Kong Dollar

      3.0  

South Korean Won

      2.6  

Other, less than 2% each

      5.3  
  

 

 

  

Total Investments

      98.9  

Other assets less liabilities

      1.1  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

21  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Natixis U.S. Equity Opportunities Fund

 

Shares      Description    Value (†)  
  Common Stocks — 96.7% of Net Assets  
   Aerospace & Defense — 2.0%

 

  113,693      Boeing Co. (The)(a)    $ 15,544,107  
     

 

 

  
   Air Freight & Logistics — 0.6%

 

  48,825      Expeditors International of Washington, Inc.      4,758,484  
     

 

 

  
   Automobiles — 2.2%

 

  220,000      General Motors Co.(a)      6,987,200  
  15,649      Tesla, Inc.(a)      10,538,350  
     

 

 

  
        17,525,550  
     

 

 

  
   Banks — 3.3%

 

  318,705      Citigroup, Inc.      14,657,243  
  304,400      Wells Fargo & Co.      11,923,348  
     

 

 

  
        26,580,591  
     

 

 

  
   Beverages — 2.7%

 

  12,987      Boston Beer Co., Inc. (The), Class A(a)      3,934,671  
  190,167      Monster Beverage Corp.(a)      17,628,481  
     

 

 

  
        21,563,152  
     

 

 

  
   Biotechnology — 5.0%

 

  64,166      Alnylam Pharmaceuticals, Inc.(a)      9,358,611  
  45,511      BioMarin Pharmaceutical, Inc.(a)      3,771,497  
  77,642      CRISPR Therapeutics AG(a)      4,718,304  
  36,541      Regeneron Pharmaceuticals, Inc.(a)      21,600,481  
     

 

 

  
        39,448,893  
     

 

 

  
   Capital Markets — 8.5%

 

  248,245      Charles Schwab Corp. (The)      15,684,119  
  16,158      FactSet Research Systems, Inc.      6,213,882  
  104,300      Intercontinental Exchange, Inc.      9,808,372  
  316,800      KKR & Co., Inc.      14,664,672  
  13,500      MSCI, Inc.      5,564,025  
  101,206      SEI Investments Co.      5,467,148  
  163,700      State Street Corp.      10,092,105  
     

 

 

  
        67,494,323  
     

 

 

  
   Consumer Finance — 5.9%

 

  543,800      Ally Financial, Inc.      18,222,738  
  88,500      American Express Co.      12,267,870  
  155,885      Capital One Financial Corp.      16,241,658  
     

 

 

  
        46,732,266  
     

 

 

  
   Entertainment — 3.5%

 

  101,543      Netflix, Inc.(a)      17,756,825  
  103,486      Walt Disney Co. (The)(a)      9,769,078  
     

 

 

  
        27,525,903  
     

 

 

  
   Health Care Equipment & Supplies — 0.4%

 

  15,276      Intuitive Surgical, Inc.(a)      3,066,046  
     

 

 

  
   Health Care Providers & Services — 1.4%

 

  68,700      HCA Healthcare, Inc.      11,545,722  
     

 

 

  
   Health Care Technology — 1.9%

 

  233,702      Doximity, Inc., Class A(a)      8,137,504  
  37,149      Veeva Systems, Inc., Class A(a)      7,356,988  
     

 

 

  
        15,494,492  
     

 

 

  
   Hotels, Restaurants & Leisure — 3.7%

 

  7,245      Booking Holdings, Inc.(a)      12,671,432  
  98,751      Starbucks Corp.      7,543,589  
  105,858      Yum China Holdings, Inc.      5,134,113  
  34,976      Yum! Brands, Inc.      3,970,126  
     

 

 

  
        29,319,260  
     

 

 

  
   Industrial Conglomerates — 0.9%

 

  109,793      General Electric Co.      6,990,520  
     

 

 

  
   Insurance — 4.8%

 

  273,555      American International Group, Inc.    $ 13,986,867  
  104,781      Reinsurance Group of America, Inc.      12,289,764  
  59,100      Willis Towers Watson PLC      11,665,749  
     

 

 

  
        37,942,380  
     

 

 

  
   Interactive Media & Services — 9.3%

 

  15,497      Alphabet, Inc., Class A(a)      33,771,992  
  4,081      Alphabet, Inc., Class C(a)      8,926,983  
  193,615      Meta Platforms, Inc., Class A(a)      31,220,419  
     

 

 

  
        73,919,394  
     

 

 

  
   Internet & Direct Marketing Retail — 5.0%

 

  57,666      Alibaba Group Holding Ltd., Sponsored ADR(a)      6,555,471  
  314,087      Amazon.com, Inc.(a)      33,359,180  
     

 

 

  
        39,914,651  
     

 

 

  
   IT Services — 7.1%

 

  66,496      Block, Inc.(a)      4,086,844  
  165,200      Fiserv, Inc.(a)      14,697,844  
  51,200      Gartner, Inc.(a)      12,381,696  
  68,485      PayPal Holdings, Inc.(a)      4,782,992  
  107,760      Shopify, Inc., Class A(a)      3,366,422  
  86,160      Visa, Inc., Class A      16,964,043  
     

 

 

  
        56,279,841  
     

 

 

  
   Life Sciences Tools & Services — 0.8%

 

  36,506      Illumina, Inc.(a)      6,730,246  
     

 

 

  
   Machinery — 0.6%

 

  15,255      Deere & Co.      4,568,415  
     

 

 

  
   Media — 2.8%

 

  24,495      Charter Communications, Inc., Class A(a)      11,476,643  
  271,880      Comcast Corp., Class A      10,668,571  
     

 

 

  
        22,145,214  
     

 

 

  
   Oil, Gas & Consumable Fuels — 8.5%

 

  554,341      APA Corp.      19,346,501  
  224,200      ConocoPhillips      20,135,402  
  257,238      EOG Resources, Inc.      28,409,365  
     

 

 

  
        67,891,268  
     

 

 

  
   Pharmaceuticals — 2.9%

 

  128,847      Novartis AG, Sponsored ADR      10,891,437  
  41,564      Novo Nordisk A/S, Sponsored ADR      4,631,477  
  187,202      Roche Holding AG, Sponsored ADR      7,808,195  
     

 

 

  
        23,331,109  
     

 

 

  
   Real Estate Management & Development — 1.3%

 

  145,800      CBRE Group, Inc., Class A(a)      10,732,338  
     

 

 

  
   Semiconductors & Semiconductor Equipment — 3.1%

 

  109,483      NVIDIA Corp.      16,596,528  
  62,363      QUALCOMM, Inc.      7,966,250  
     

 

 

  
        24,562,778  
     

 

 

  
   Software — 6.4%

 

  67,729      Autodesk, Inc.(a)      11,646,679  
  43,197      Microsoft Corp.      11,094,286  
  189,454      Oracle Corp.      13,237,151  
  49,450      Salesforce, Inc.(a)      8,161,228  
  45,806      Workday, Inc., Class A(a)      6,393,601  
     

 

 

  
        50,532,945  
     

 

 

  
   Textiles, Apparel & Luxury Goods — 0.5%

 

  449,610      Under Armour, Inc., Class A(a)      3,745,251  
     

 

 

  
   Tobacco — 1.6%

 

  305,600      Altria Group, Inc.      12,764,912  
     

 

 

  
  

Total Common Stocks

(Identified Cost $684,578,623)

      768,650,051  
     

 

 

  

 

See accompanying notes to financial statements.

 

|  22

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Natixis U.S. Equity Opportunities Fund – (continued)

 

Principal

Amount

      Description    Value (†)  
  Short-Term Investments — 3.3%  
$ 26,700,813     

Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $26,701,073 on 7/01/2022 collateralized by $11,000,000 U.S. Treasury Note, 2.875% due 8/15/2028 valued at $10,918,135; $13,548,600 U.S. Treasury Note, 3.250% due 6/30/2027 valued at $13,609,989; $3,126,300 U.S. Treasury Note, 0.375% due 9/30/2027 valued at $2,706,799 including accrued interest (Note 2 of Notes to Financial Statements)

(Identified Cost $26,700,813)

    $ 26,700,813  
     

 

 

  
     
  

Total Investments — 100.0%

(Identified Cost $711,279,436)

      795,350,864  
   Other assets less liabilities — (0.0)%      (356,218 ) 
     

 

 

  
   Net Assets — 100.0%    $ 794,994,646  
     

 

 

  
  (†)      See Note 2 of Notes to Financial Statements.

 

  (a)      Non-income producing security.

 

     
  ADR      An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.

 

Industry Summary at June 30, 2022 (Unaudited)

 

Interactive Media & Services

      9.3 % 

Oil, Gas & Consumable Fuels

      8.5  

Capital Markets

      8.5  

IT Services

      7.1  

Software

      6.4  

Consumer Finance

      5.9  

Internet & Direct Marketing Retail

      5.0  

Biotechnology

      5.0  

Insurance

      4.8  

Hotels, Restaurants & Leisure

      3.7  

Entertainment

      3.5  

Banks

      3.3  

Semiconductors & Semiconductor Equipment

      3.1  

Pharmaceuticals

      2.9  

Media

      2.8  

Beverages

      2.7  

Automobiles

      2.2  

Aerospace & Defense

      2.0  

Other Investments, less than 2% each

      10.0  

Short-Term Investments

      3.3  
  

 

 

  

Total Investments

      100.0  

Other assets less liabilities

      (0.0 )* 
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

*

Less than 0.1%

 

See accompanying notes to financial statements.

 

23  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Vaughan Nelson Mid Cap Fund

 

Shares      Description    Value (†)  
  Common Stocks — 92.3% of Net Assets  
   Aerospace & Defense — 0.5%

 

  15,545      Axon Enterprise, Inc.(a)    $ 1,448,328  
     

 

 

  
   Banks — 1.2%

 

  65,580      Bank of N.T. Butterfield & Son Ltd. (The)      2,045,440  
  56,676      Huntington Bancshares, Inc.      681,812  
  24,145      PacWest Bancorp      643,706  
     

 

 

  
        3,370,958  
     

 

 

  
   Building Products — 0.8%

 

  13,150      Allegion PLC      1,287,385  
  62,700      AZEK Co., Inc. (The)(a)      1,049,598  
     

 

 

  
        2,336,983  
     

 

 

  
   Capital Markets — 4.7%

 

  20,575      Ares Management Corp., Class A      1,169,894  
  118,192      Brightsphere Investment Group, Inc.      2,128,638  
  8,010      FactSet Research Systems, Inc.      3,080,406  
  36,945      Nasdaq, Inc.      5,635,590  
  15,722      Raymond James Financial, Inc.      1,405,704  
     

 

 

  
        13,420,232  
     

 

 

  
   Chemicals — 2.9%

 

  57,345      Axalta Coating Systems Ltd.(a)      1,267,898  
  43,180      FMC Corp.      4,620,691  
  28,530      LyondellBasell Industries NV, Class A      2,495,234  
     

 

 

  
        8,383,823  
     

 

 

  
   Commercial Services & Supplies — 2.8%

 

  62,445      Republic Services, Inc.      8,172,177  
     

 

 

  
   Communications Equipment — 4.5%

 

  61,740      Motorola Solutions, Inc.      12,940,704  
     

 

 

  
   Construction & Engineering — 2.8%

 

  246,205      WillScot Mobile Mini Holdings Corp.(a)      7,981,966  
     

 

 

  
   Containers & Packaging — 2.9%

 

  9,255      Avery Dennison Corp.      1,498,107  
  76,050      Crown Holdings, Inc.      7,009,528  
     

 

 

  
        8,507,635  
     

 

 

  
   Diversified Consumer Services — 0.8%

 

  23,860      Grand Canyon Education, Inc.(a)      2,247,373  
     

 

 

  
   Diversified Financial Services — 0.7%

 

  43,462      Apollo Global Management, Inc.      2,107,038  
     

 

 

  
   Electric Utilities — 6.7%

 

  162,695      Alliant Energy Corp.      9,535,554  
  149,710      Evergy, Inc.      9,768,577  
     

 

 

  
        19,304,131  
     

 

 

  
   Electrical Equipment — 2.7%

 

  37,255      AMETEK, Inc.      4,093,952  
  11,565      Hubbell, Inc.      2,065,278  
  48,335      nVent Electric PLC      1,514,335  
     

 

 

  
        7,673,565  
     

 

 

  
   Electronic Equipment, Instruments & Components — 1.0%

 

  8,200      CDW Corp.      1,291,992  
  10,835      Keysight Technologies, Inc.(a)      1,493,605  
     

 

 

  
        2,785,597  
     

 

 

  
   Food & Staples Retailing — 0.5%

 

  31,370      Performance Food Group Co.(a)      1,442,393  
     

 

 

  
   Health Care Equipment & Supplies — 2.6%

 

  12,095      Cooper Cos., Inc. (The)      3,787,186  
  51,620      Hologic, Inc.(a)      3,577,266  
     

 

 

  
        7,364,452  
     

 

 

  
   Health Care Providers & Services — 0.7%

 

  873,980      Aveanna Healthcare Holdings, Inc.(a)    $ 1,975,195  
     

 

 

  
   Hotels, Restaurants & Leisure — 0.9%

 

  88,430      Aramark      2,708,611  
     

 

 

  
   Household Products — 2.9%

 

  89,095      Church & Dwight Co., Inc.      8,255,543  
     

 

 

  
   Independent Power & Renewable Electricity Producers — 3.3%

 

  417,480      Vistra Corp.      9,539,418  
     

 

 

  
   Insurance — 5.2%

 

  51,700      Allstate Corp. (The)      6,551,941  
  28,855      Arthur J. Gallagher & Co.      4,704,519  
  30,800      Reinsurance Group of America, Inc.      3,612,532  
     

 

 

  
        14,868,992  
     

 

 

  
   IT Services — 4.6%

 

  98,615      MAXIMUS, Inc.      6,164,424  
  122,600      SS&C Technologies Holdings, Inc.      7,119,382  
     

 

 

  
        13,283,806  
     

 

 

  
   Life Sciences Tools & Services — 6.2%

 

  12,620      Agilent Technologies, Inc.      1,498,877  
  195,970      Avantor, Inc.(a)      6,094,667  
  17,907      IQVIA Holdings, Inc.(a)      3,885,640  
  329,850      Sotera Health Co.(a)      6,461,762  
     

 

 

  
        17,940,946  
     

 

 

  
   Machinery — 2.2%

 

  22,970      Crane Holdings Co.      2,011,253  
  61,265      Otis Worldwide Corp.      4,329,598  
     

 

 

  
        6,340,851  
     

 

 

  
   Media — 4.2%

 

  74,995      Nexstar Media Group, Inc., Class A      12,215,186  
     

 

 

  
   Metals & Mining — 0.4%

 

  78,405      Constellium SE(a)      1,035,730  
     

 

 

  
   Multi-Utilities — 6.9%

 

  110,020      Ameren Corp.      9,941,407  
  145,445      CMS Energy Corp.      9,817,538  
     

 

 

  
        19,758,945  
     

 

 

  
   Oil, Gas & Consumable Fuels — 6.3%

 

  50,635      Diamondback Energy, Inc.      6,134,430  
  27,905      Pioneer Natural Resources Co.      6,225,047  
  924,955      Southwestern Energy Co.(a)      5,780,969  
     

 

 

  
        18,140,446  
     

 

 

  
   Pharmaceuticals — 2.7%

 

  401,155      Elanco Animal Health, Inc.(a)      7,874,673  
     

 

 

  
   Professional Services — 2.6%

 

  22,035      CACI International, Inc., Class A(a)      6,209,022  
  6,940      Equifax, Inc.      1,268,493  
     

 

 

  
        7,477,515  
     

 

 

  
   REITs – Diversified — 1.4%

 

  425,990      New Residential Investment Corp.      3,970,227  
     

 

 

  
   Semiconductors & Semiconductor Equipment — 0.7%

 

  9,780      Analog Devices, Inc.      1,428,760  
  6,980      Entegris, Inc.      643,068  
     

 

 

  
        2,071,828  
     

 

 

  
   Software — 1.1%

 

  343,727      N-Able, Inc.(a)      3,093,543  
     

 

 

  
   Specialty Retail — 1.4%

 

  275,755      Leslie’s, Inc.(a)      4,185,961  
     

 

 

  

 

See accompanying notes to financial statements.

 

|  24

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Vaughan Nelson Mid Cap Fund – (continued)

 

Shares      Description    Value (†)  
   Textiles, Apparel & Luxury Goods — 0.5%

 

  41,110      Skechers U.S.A., Inc., Class A(a)    $ 1,462,694  
     

 

 

  
  

Total Common Stocks

(Identified Cost $264,862,148)

      265,687,465  
     

 

 

  
     

Principal

Amount

                
  Short-Term Investments — 7.9%  
$ 22,770,147     

Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $22,770,368 on 7/01/2022 collateralized by $1,048,700 U.S. Treasury Note, 1.875% due 2/28/2027 valued at $990,611; $22,903,300 U.S. Treasury Note, 2.500% due 3/31/2027 valued at $22,234,982 including accrued interest (Note 2 of Notes to Financial Statements)

(Identified Cost $22,770,147)

      22,770,147  
     

 

 

  
     
   Total Investments — 100.2%
(Identified Cost $287,632,295)		      288,457,612  
   Other assets less liabilities — (0.2)%      (456,728 ) 
     

 

 

  
   Net Assets — 100.0%    $ 288,000,884  
     

 

 

  
     
  (†)      See Note 2 of Notes to Financial Statements.   
  (a)      Non-income producing security.

 

     
  REITs      Real Estate Investment Trusts   

Industry Summary at June 30, 2022 (Unaudited)

 

Multi-Utilities

      6.9 % 

Electric Utilities

      6.7  

Oil, Gas & Consumable Fuels

      6.3  

Life Sciences Tools & Services

      6.2  

Insurance

      5.2  

Capital Markets

      4.7  

IT Services

      4.6  

Communications Equipment

      4.5  

Media

      4.2  

Independent Power & Renewable Electricity Producers

      3.3  

Containers & Packaging

      2.9  

Chemicals

      2.9  

Household Products

      2.9  

Commercial Services & Supplies

      2.8  

Construction & Engineering

      2.8  

Pharmaceuticals

      2.7  

Electrical Equipment

      2.7  

Professional Services

      2.6  

Health Care Equipment & Supplies

      2.6  

Machinery

      2.2  

Other Investments, less than 2% each

      12.6  

Short-Term Investments

      7.9  
  

 

 

  

Total Investments

      100.2  

Other assets less liabilities

      (0.2 ) 
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

25  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Vaughan Nelson Small Cap Value Fund

 

Shares

      Description    Value (†)  
  Common Stocks — 93.3% of Net Assets  
   Banks — 5.6%

 

  76,700      Cadence Bank    $ 1,800,916  
  116,220      Old National Bancorp      1,718,894  
  16,280      SouthState Corp.      1,256,002  
  35,520      United Bankshares, Inc.      1,245,686  
  43,300      United Community Banks, Inc.      1,307,227  
     

 

 

  
        7,328,725  
     

 

 

  
   Capital Markets — 3.4%

 

  27,175      Artisan Partners Asset Management, Inc., Class A      966,615  
  20,195      Cboe Global Markets, Inc.      2,285,872  
  29,475      Moelis & Co., Class A      1,159,841  
     

 

 

  
        4,412,328  
     

 

 

  
   Chemicals — 6.3%

 

  68,970      Chemours Co. (The)      2,208,420  
  220,050      Element Solutions, Inc.      3,916,890  
  20,030      FMC Corp.      2,143,410  
     

 

 

  
        8,268,720  
     

 

 

  
   Commercial Services & Supplies — 1.7%

 

  34,580      Ritchie Bros. Auctioneers, Inc.      2,249,775  
     

 

 

  
   Electronic Equipment, Instruments & Components — 7.3%

 

  20,665      Advanced Energy Industries, Inc.      1,508,132  
  21,225      Fabrinet(a)      1,721,347  
  42,625      II-VI, Inc.(a)      2,171,744  
  48,915      Insight Enterprises, Inc.(a)      4,220,386  
     

 

 

  
        9,621,609  
     

 

 

  
   Energy Equipment & Services — 0.8%

 

  148,275      TechnipFMC PLC(a)      997,891  
     

 

 

  
   Food & Staples Retailing — 1.2%

 

  35,340      Performance Food Group Co.(a)      1,624,933  
     

 

 

  
   Gas Utilities — 4.2%

 

  33,380      Southwest Gas Holdings, Inc.(a)      2,906,730  
  34,815      Spire, Inc.      2,589,192  
     

 

 

  
        5,495,922  
     

 

 

  
   Health Care Providers & Services — 1.0%

 

  4,885      Molina Healthcare, Inc.(a)      1,365,895  
     

 

 

  
   Hotels, Restaurants & Leisure — 3.8%

 

  73,130      Bally’s Corp.(a)      1,446,511  
  95,570      Everi Holdings, Inc.(a)      1,558,747  
  109,559      International Game Technology PLC      2,033,415  
     

 

 

  
        5,038,673  
     

 

 

  
   Household Durables — 1.6%

 

  24,585      Installed Building Products, Inc.      2,044,489  
     

 

 

  
   Insurance — 4.9%

 

  28,085      Brown & Brown, Inc.      1,638,479  
  37,805      First American Financial Corp.      2,000,640  
  25,920      Selective Insurance Group, Inc.      2,253,485  
  84,960      Trean Insurance Group, Inc.(a)      529,301  
     

 

 

  
        6,421,905  
     

 

 

  
   IT Services — 6.0%

 

  33,855      ExlService Holdings, Inc.(a)      4,987,857  
  25,740      Thoughtworks Holding, Inc.(a)      363,191  
  33,185      WNS Holdings Ltd., ADR(a)      2,476,929  
     

 

 

  
        7,827,977  
     

 

 

  
   Life Sciences Tools & Services — 5.2%

 

  57,465      Avantor, Inc.(a)    $ 1,787,162  
  60,135      Maravai LifeSciences Holdings, Inc., Class A(a)      1,708,435  
  47,115      Syneos Health, Inc.(a)      3,377,203  
     

 

 

  
        6,872,800  
     

 

 

  
   Machinery — 7.8%

 

  15,035      Alamo Group, Inc.      1,750,525  
  69,115      Federal Signal Corp.      2,460,494  
  31,255      Franklin Electric Co., Inc.      2,289,741  
  32,380      SPX Corp.(a)      1,710,959  
  16,135      Watts Water Technologies, Inc., Series A      1,982,024  
     

 

 

  
        10,193,743  
     

 

 

  
   Marine — 1.3%

 

  27,655      Kirby Corp.(a)      1,682,530  
     

 

 

  
   Media — 1.9%

 

  120,335      TEGNA, Inc.      2,523,425  
     

 

 

  
   Oil, Gas & Consumable Fuels — 5.0%

 

  41,090      Antero Resources Corp.(a)      1,259,409  
  88,230      Comstock Resources, Inc.(a)      1,065,818  
  32,585      Ovintiv, Inc.      1,439,931  
  25,125      PDC Energy, Inc.      1,547,951  
  202,375      Southwestern Energy Co.(a)      1,264,844  
     

 

 

  
        6,577,953  
     

 

 

  
   Personal Products — 2.0%

 

  325,335      Coty, Inc., Class A(a)      2,605,933  
     

 

 

  
   Professional Services — 6.2%

 

  32,790      ASGN, Inc.(a)      2,959,298  
  5,185      CACI International, Inc., Class A(a)      1,461,029  
  20,185      FTI Consulting, Inc.(a)      3,650,457  
     

 

 

  
        8,070,784  
     

 

 

  
   Road & Rail — 2.7%

 

  14,055      Landstar System, Inc.      2,043,878  
  7,820      Saia, Inc.(a)      1,470,160  
     

 

 

  
        3,514,038  
     

 

 

  
   Semiconductors & Semiconductor Equipment — 4.8%

 

  48,880      Ichor Holdings Ltd.(a)      1,269,902  
  20,515      MKS Instruments, Inc.      2,105,455  
  85,265      Rambus, Inc.(a)      1,832,345  
  36,800      Ultra Clean Holdings, Inc.(a)      1,095,536  
     

 

 

  
        6,303,238  
     

 

 

  
   Specialty Retail — 0.5%

 

  3,275      RH(a)      695,151  
     

 

 

  
   Textiles, Apparel & Luxury Goods — 1.0%

 

  30,830      Capri Holdings Ltd.(a)      1,264,338  
     

 

 

  
   Trading Companies & Distributors — 7.1%

 

  35,305      Beacon Roofing Supply, Inc.(a)      1,813,265  
  77,420      Core & Main, Inc., Class A(a)      1,726,466  
  31,310      GATX Corp.      2,948,150  
  24,740      Rush Enterprises, Inc., Class A      1,192,468  
  6,710      Watsco, Inc.      1,602,482  
     

 

 

  
        9,282,831  
     

 

 

  
  

Total Common Stocks

(Identified Cost $121,002,792)

      122,285,606  
     

 

 

  
     

 

See accompanying notes to financial statements.

 

|  26

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Vaughan Nelson Small Cap Value Fund – (continued)

 

Principal

Amount

      Description    Value (†)  
  Short-Term Investments — 6.6%  
$ 8,660,671     

Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $8,660,755 on 7/01/2022 collateralized by $9,351,900 U.S. Treasury Note, 1.875% due 2/28/2027 valued at $8,833,889 including accrued interest (Note 2 of Notes to Financial Statements)

(Identified Cost $8,660,671)

    $ 8,660,671  
     

 

 

  
     
  

Total Investments — 99.9%

(Identified Cost $129,663,463)

      130,946,277  
   Other assets less liabilities — 0.1%      121,929  
     

 

 

  
   Net Assets — 100.0%    $ 131,068,206  
     

 

 

  
     
  (†)      See Note 2 of Notes to Financial Statements.

 

  (a)      Non-income producing security.

 

  
  ADR      An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.

 

Industry Summary at June 30, 2022 (Unaudited)

 

Machinery

      7.8 % 

Electronic Equipment, Instruments & Components

      7.3  

Trading Companies & Distributors

      7.1  

Chemicals

      6.3  

Professional Services

      6.2  

IT Services

      6.0  

Banks

      5.6  

Life Sciences Tools & Services

      5.2  

Oil, Gas & Consumable Fuels

      5.0  

Insurance

      4.9  

Semiconductors & Semiconductor Equipment

      4.8  

Gas Utilities

      4.2  

Hotels, Restaurants & Leisure

      3.8  

Capital Markets

      3.4  

Road & Rail

      2.7  

Personal Products

      2.0  

Other Investments, less than 2% each

      11.0  

Short-Term Investments

      6.6  
  

 

 

  

Total Investments

      99.9  

Other assets less liabilities

      0.1  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

27  |

Statements of Assets and Liabilities

 

June 30, 2022 (Unaudited)

 

     International
Growth Fund		      Natixis
Oakmark
Fund		      Natixis
Oakmark
International
Fund		      Natixis U.S.
Equity
Opportunities
Fund		  

ASSETS

            

Investments at cost

    $ 27,689,948      $ 418,243,759      $ 459,680,675      $ 711,279,436  

Net unrealized appreciation (depreciation)

      (6,544,643 )       (20,235,417 )       (73,150,405 )       84,071,428  
  

 

 

     

 

 

     

 

 

     

 

 

  

Investments at value

      21,145,305        398,008,342        386,530,270        795,350,864  

Cash

      —        —        —        5,217  

Foreign currency at value (identified cost $31,546, $0, $0 and $0, respectively)

      31,537        —        —        —  

Receivable for Fund shares sold

      340        132,583        403,720        128,131  

Receivable for securities sold

      —        18,472,854        603,814        —  

Dividends and interest receivable

      15,458        409,380        166,343        650,431  

Tax reclaims receivable

      47,809        —        4,547,772        502,713  

Prepaid expenses (Note 9)

      2        66        63        131  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL ASSETS

      21,240,451        417,023,225        392,251,982        796,637,487  
  

 

 

     

 

 

     

 

 

     

 

 

  

LIABILITIES

            

Payable for securities purchased

      —        1,686,707        299,625        155,014  

Payable for Fund shares redeemed

      —        146,088        346,465        284,777  

Foreign taxes payable (Note 2)

      —        —        83,966        —  

Management fees payable (Note 6)

      11,918        230,334        214,605        523,910  

Deferred Trustees’ fees (Note 6)

      4,188        663,890        124,149        506,607  

Administrative fees payable (Note 6)

      799        16,805        15,852        31,832  

Payable to distributor (Note 6d)

      10        2,177        6,220        2,622  

Audit and tax services fees payable

      25,032        23,876        25,188        24,932  

Other accounts payable and accrued expenses

      11,393        47,446        162,460        113,147  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL LIABILITIES

      53,340        2,817,323        1,278,530        1,642,841  
  

 

 

     

 

 

     

 

 

     

 

 

  

NET ASSETS

    $ 21,187,111      $ 414,205,902      $ 390,973,452      $ 794,994,646  
  

 

 

     

 

 

     

 

 

     

 

 

  

NET ASSETS CONSIST OF:

            

Paid-in capital

    $ 28,041,160      $ 415,033,899      $ 571,049,467      $ 652,424,691  

Accumulated earnings (loss)

      (6,854,049 )       (827,997 )       (180,076,015 )       142,569,955  
  

 

 

     

 

 

     

 

 

     

 

 

  

NET ASSETS

    $ 21,187,111      $ 414,205,902      $ 390,973,452      $ 794,994,646  
  

 

 

     

 

 

     

 

 

     

 

 

  

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:

            

Class A shares:

            

Net assets

    $ 114,734      $ 186,192,668      $ 121,284,417      $ 529,334,519  
  

 

 

     

 

 

     

 

 

     

 

 

  

Shares of beneficial interest

      15,203        8,069,110        9,917,125        16,974,830  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value and redemption price per share

    $ 7.55      $ 23.07      $ 12.23      $ 31.18  
  

 

 

     

 

 

     

 

 

     

 

 

  

Offering price per share (100/94.25 of net asset value) (Note 1)

    $ 8.01      $ 24.48      $ 12.98      $ 33.08  
  

 

 

     

 

 

     

 

 

     

 

 

  

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)

            

Net assets

    $ 758      $ 50,765,419      $ 45,884,836      $ 36,164,093  
  

 

 

     

 

 

     

 

 

     

 

 

  

Shares of beneficial interest

      101        2,737,712        3,838,345        2,395,694  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value and offering price per share

    $ 7.47 *     $ 18.54      $ 11.95      $ 15.10  
  

 

 

     

 

 

     

 

 

     

 

 

  

Class N shares:

            

Net assets

    $ 18,119,377      $ 478,051      $ 1,940,779      $ 162,036  
  

 

 

     

 

 

     

 

 

     

 

 

  

Shares of beneficial interest

      2,395,482        19,284        159,103        4,098  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, offering and redemption price per share

    $ 7.56      $ 24.79      $ 12.20      $ 39.54  
  

 

 

     

 

 

     

 

 

     

 

 

  

Class Y shares:

            

Net assets

    $ 2,952,242      $ 176,769,764      $ 221,863,420      $ 229,333,998  
  

 

 

     

 

 

     

 

 

     

 

 

  

Shares of beneficial interest

      390,344        7,153,182        18,209,970        5,819,063  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, offering and redemption price per share

    $ 7.56      $ 24.71      $ 12.18      $ 39.41  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

*

Net asset value calculations have been determined utilizing fractional share and penny amounts.

 

See accompanying notes to financial statements.

 

|  28

Statements of Assets and Liabilities (continued)

 

June 30, 2022 (Unaudited)

 

     Vaughan
Nelson Mid
Cap Fund		      Vaughan
Nelson
Small Cap
Value Fund		  

ASSETS

      

Investments at cost

    $ 287,632,295      $ 129,663,463  

Net unrealized appreciation

      825,317        1,282,814  
  

 

 

     

 

 

  

Investments at value

      288,457,612        130,946,277  

Cash

      5,426        —  

Receivable for Fund shares sold

      143,601        477,903  

Dividends and interest receivable

      264,148        81,211  

Prepaid expenses (Note 9)

      45        19  
  

 

 

     

 

 

  

TOTAL ASSETS

      288,870,832        131,505,410  
  

 

 

     

 

 

  

LIABILITIES

      

Payable for securities purchased

      339,560        6,800  

Payable for Fund shares redeemed

      82,196        62,687  

Management fees payable (Note 6)

      176,951        83,558  

Deferred Trustees’ fees (Note 6)

      196,123        221,372  

Administrative fees payable (Note 6)

      11,261        5,089  

Payable to distributor (Note 6d)

      1,854        761  

Audit and tax services fees payable

      24,742        23,851  

Other accounts payable and accrued expenses

      37,261        33,086  
  

 

 

     

 

 

  

TOTAL LIABILITIES

      869,948        437,204  
  

 

 

     

 

 

  

NET ASSETS

    $ 288,000,884      $ 131,068,206  
  

 

 

     

 

 

  

NET ASSETS CONSIST OF:

      

Paid-in capital

    $ 287,086,437      $ 126,780,582  

Accumulated earnings

      914,447        4,287,624  
  

 

 

     

 

 

  

NET ASSETS

    $ 288,000,884      $ 131,068,206  
  

 

 

     

 

 

  

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:

      

Class A shares:

      

Net assets

    $ 32,689,722      $ 69,042,222  
  

 

 

     

 

 

  

Shares of beneficial interest

      1,724,525        4,538,389  
  

 

 

     

 

 

  

Net asset value and redemption price per share

    $ 18.96      $ 15.21  
  

 

 

     

 

 

  

Offering price per share (100/94.25 of net asset value) (Note 1)

    $ 20.12      $ 16.14  
  

 

 

     

 

 

  

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)

      

Net assets

    $ 8,424,656      $ 838,007  
  

 

 

     

 

 

  

Shares of beneficial interest

      493,330        147,677  
  

 

 

     

 

 

  

Net asset value and offering price per share

    $ 17.08      $ 5.67  
  

 

 

     

 

 

  

Class N shares:

      

Net assets

    $ 73,156,761      $ 1,207,148  
  

 

 

     

 

 

  

Shares of beneficial interest

      3,794,793        74,592  
  

 

 

     

 

 

  

Net asset value, offering and redemption price per share

    $ 19.28      $ 16.18  
  

 

 

     

 

 

  

Class Y shares:

      

Net assets

    $ 173,729,745      $ 59,980,829  
  

 

 

     

 

 

  

Shares of beneficial interest

      8,997,189        3,710,456  
  

 

 

     

 

 

  

Net asset value, offering and redemption price per share

    $ 19.31      $ 16.17  
  

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

29  |

Statements of Operations

 

For the Six Months Ended June 30, 2022 (Unaudited)

 

     International
Growth Fund		      Natixis
Oakmark
Fund		      Natixis
Oakmark
International
Fund		      Natixis
U.S. Equity
Opportunities
Fund		  

INVESTMENT INCOME

            

Dividends

    $ 220,191      $ 3,739,093      $ 10,022,852      $ 6,157,317  

Non-cash dividends (Note 2b)

      37,296 (a)       —        —        —  

Interest

      127        3,799        3,365        5,487  

Less net foreign taxes withheld

      (24,026 )       —        (1,189,049 )       (117,992 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
     233,588        3,742,892        8,837,168        6,044,812  
  

 

 

     

 

 

     

 

 

     

 

 

  

Expenses

            

Management fees (Note 6)

      82,245        1,558,312        1,816,250        3,569,168  

Service and distribution fees (Note 6)

      224        559,529        462,356        1,042,020  

Administrative fees (Note 6)

      4,852        102,769        102,604        210,352  

Trustees’ fees and expenses (Note 6)

      6,602        13,276        13,242        19,890  

Trustees’ fees deferred compensation (Note 6)

      1,171        (93,831 )       (15,238 )       (71,292 ) 

Transfer agent fees and expenses (Notes 6 and 7)

      3,863        196,446        402,355        282,599  

Audit and tax services fees

      20,970        20,384        43,062        22,692  

Custodian fees and expenses

      7,325        9,155        75,618        23,809  

Legal fees (Note 9)

      319        4,561        6,240        12,334  

Registration fees

      15,946        75,820        46,215        58,989  

Shareholder reporting expenses

      7,041        29,109        48,442        59,325  

Miscellaneous expenses

      21,510        20,191        50,611        29,416  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses

      172,068        2,495,721        3,051,757        5,259,302  

Less waiver and/or expense reimbursement (Note 6)

      (72,643 )       (79,455 )       (499,000 )       (883 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net expenses

      99,425        2,416,266        2,552,757        5,258,419  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

      134,163        1,326,626        6,284,411        786,393  
  

 

 

     

 

 

     

 

 

     

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FORWARD FOREIGN CURRENCY ACONTRACTS AND FOREIGN CURRENCY TRANSACTIONS

            

Net realized gain (loss) on:

            

Investments

      93,523        26,531,933        (2,411,934 )       61,565,106  

Forward foreign currency contracts (Note 2d)

      —        —        473,946        —  

Foreign currency transactions (Note 2c)

      (3,773 )       —        (29,179 )       —  

Net change in unrealized appreciation (depreciation) on:

            

Investments

      (5,486,634 )       (130,344,165 )       (101,616,809 )       (324,961,803 ) 

Forward foreign currency contracts (Note 2d)

      —        —        94,327        —  

Foreign currency translations (Note 2c)

      (1,959 )       —        (344,012 )       (7,378 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net realized and unrealized loss on investments, forward foreign currency contracts and foreign currency transactions

      (5,398,843 )       (103,812,232 )       (103,833,661 )       (263,404,075 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ (5,264,680 )     $ (102,485,606 )     $ (97,549,250 )     $ (262,617,682 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Represents a non-recurring stock dividend.

 

See accompanying notes to financial statements.

 

|  30

Statements of Operations (continued)

 

For the Six Months Ended June 30, 2022 (Unaudited)

 

     Vaughan Nelson
Mid Cap Fund		      Vaughan Nelson
Small Cap
Value Fund		  

INVESTMENT INCOME

 

Dividends

    $ 2,895,603      $ 807,277  

Interest

      4,402        1,547  

Less net foreign taxes withheld

      —        (2,781 ) 
  

 

 

     

 

 

  
     2,900,005        806,043  
  

 

 

     

 

 

  

Expenses

 

Management fees (Note 6)

      1,214,547        612,499  

Service and distribution fees (Note 6)

      93,494        98,472  

Administrative fees (Note 6)

      71,615        31,883  

Trustees’ fees and expenses (Note 6)

      10,979        8,406  

Trustees’ fees deferred compensation (Note 6)

      (25,832 )       (31,160 ) 

Transfer agent fees and expenses (Notes 6 and 7)

      110,334        73,719  

Audit and tax services fees

      20,817        20,386  

Custodian fees and expenses

      8,311        4,721  

Legal fees (Note 9)

      4,175        1,729  

Registration fees

      34,661        30,465  

Shareholder reporting expenses

      17,821        15,570  

Miscellaneous expenses

      21,157        17,494  
  

 

 

     

 

 

  

Total expenses

      1,582,079        884,184  

Less waiver and/or expense reimbursement (Note 6)

      (50,688 )       (65,421 ) 
  

 

 

     

 

 

  

Net expenses

      1,531,391        818,763  
  

 

 

     

 

 

  

Net investment income (loss)

      1,368,614        (12,720 ) 
  

 

 

     

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

      

Net realized gain on:

      

Investments

      2,510,289        3,754,607  

Class action settlements (Note 8)

      238,726        —  

Net change in unrealized appreciation (depreciation) on: Investments

      (54,238,182 )       (23,288,460 ) 
  

 

 

     

 

 

  

Net realized and unrealized loss on investments

      (51,489,167 )       (19,533,853 ) 
  

 

 

     

 

 

  

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ (50,120,553 )     $ (19,546,573 ) 
  

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

31  |

Statements of Changes in Net Assets

 

 

     International Growth Fund      Natixis Oakmark Fund  
     Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		      Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		  

FROM OPERATIONS:

            

Net investment income

    $ 134,163      $ 68,456      $ 1,326,626      $ 633,264  

Net realized gain (loss) on investments and foreign currency transactions

      89,750        (203,613 )       26,531,933        28,561,069  

Net change in unrealized appreciation (depreciation) on investments and foreign currency translations

      (5,488,593 )       (1,246,367 )       (130,344,165 )       53,375,247  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

      (5,264,680 )       (1,381,524 )       (102,485,606 )       82,569,580  
  

 

 

     

 

 

     

 

 

     

 

 

  

FROM DISTRIBUTIONS TO SHAREHOLDERS:

            

Class A

      —        (1,712 )       (2,809,096 )       (14,668,177 ) 

Class C

      —        (540 )       (991,606 )       (3,860,638 ) 

Class N

      —        (404,221 )       (7,860 )       (42,243 ) 

Class Y

      —        (3,739 )       (2,619,716 )       (6,180,207 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      —        (410,212 )       (6,428,278 )       (24,751,265 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)

      3,126,100        9,897,595        150,953,361        69,746,167  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets

      (2,138,580 )       8,105,859        42,039,477        127,564,482  

NET ASSETS

 

Beginning of the period

      23,325,691        15,219,832        372,166,425        244,601,943  
  

 

 

     

 

 

     

 

 

     

 

 

  

End of the period

    $ 21,187,111      $ 23,325,691      $ 414,205,902      $ 372,166,425  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

|  32

Statements of Changes in Net Assets (continued)

 

 

     Natixis Oakmark International Fund      Natixis U.S. Equity Opportunities Fund  
     Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		      Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		  

FROM OPERATIONS:

            

Net investment income (loss)

    $ 6,284,411      $ 9,327,403      $ 786,393      $ (2,363,534 ) 

Net realized gain (loss) on investments, forward foreign currency contracts and foreign currency transactions

      (1,967,167 )       37,081,829        61,565,106        116,863,738  

Net change in unrealized appreciation (depreciation) on investments, forward foreign currency contracts and foreign currency translations

      (101,866,494 )       (4,477,434 )       (324,969,181 )       97,061,972  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

      (97,549,250 )       41,931,798        (262,617,682 )       211,562,176  
  

 

 

     

 

 

     

 

 

     

 

 

  

FROM DISTRIBUTIONS TO SHAREHOLDERS:

            

Class A

      —        (2,330,358 )       (26,539,784 )       (76,697,366 ) 

Class C

      —        (418,451 )       (3,948,324 )       (11,757,176 ) 

Class N

      —        (12,581 )       (5,180 )       (15,616 ) 

Class Y

      —        (5,540,267 )       (8,682,775 )       (23,677,132 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      —        (8,301,657 )       (39,176,063 )       (112,147,290 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)

      (47,346,246 )       (1,920,547 )       20,957,595        20,061,764  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets

      (144,895,496 )       31,709,594        (280,836,150 )       119,476,650  

NET ASSETS

            

Beginning of the period

      535,868,948        504,159,354        1,075,830,796        956,354,146  
  

 

 

     

 

 

     

 

 

     

 

 

  

End of the period

    $ 390,973,452      $ 535,868,948      $ 794,994,646      $ 1,075,830,796  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

33  |

Statements of Changes in Net Assets (continued)

 

 

     Vaughan Nelson Mid Cap Fund      Vaughan Nelson Small Cap Value Fund  
     Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		      Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		  

FROM OPERATIONS:

            

Net investment income (loss)

    $ 1,368,614      $ 1,331,082      $ (12,720 )     $ 174,435  

Net realized gain on investments and class action settlements

      2,749,015        56,422,377        3,754,607        33,988,295  

Net change in unrealized appreciation (depreciation) on investments

      (54,238,182 )       4,168,218        (23,288,460 )       828,120  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

      (50,120,553 )       61,921,677        (19,546,573 )       34,990,850  
  

 

 

     

 

 

     

 

 

     

 

 

  

FROM DISTRIBUTIONS TO SHAREHOLDERS:

            

Class A

      (859,450 )       (5,329,869 )       (1,681,175 )       (14,352,433 ) 

Class C

      (262,976 )       (1,799,416 )       (52,754 )       (339,165 ) 

Class N

      (1,948,714 )       (12,164,843 )       (27,118 )       (233,321 ) 

Class Y

      (4,634,572 )       (33,148,269 )       (1,450,459 )       (11,433,578 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (7,705,712 )       (52,442,397 )       (3,211,506 )       (26,358,497 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)

      (21,711,504 )       68,004,051        3,930,271        29,370,496  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets

      (79,537,769 )       77,483,331        (18,827,808 )       38,002,849  

NET ASSETS

            

Beginning of the period

      367,538,653        290,055,322        149,896,014        111,893,165  
  

 

 

     

 

 

     

 

 

     

 

 

  

End of the period

    $ 288,000,884      $ 367,538,653      $ 131,068,206      $ 149,896,014  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

|  34

Financial Highlights

 

For a share outstanding throughout each period.

 

     International Growth Fund—Class A  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		      Period Ended
December 31,
2020* 		 

Net asset value, beginning of the period

    $ 9.57     $ 10.13      $ 10.00  
  

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

   

Net investment income (loss)(a)

      0.04 (b)      (0.01 )       0.01  

Net realized and unrealized gain (loss)

      (2.06 )      (0.41 )       0.13  
  

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (2.02 )      (0.42 )       0.14  
  

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

        

Net investment income

      —       (0.01 )       (0.01 ) 

Net realized capital gains

      —       (0.13 )       —  
  

 

 

    

 

 

     

 

 

  

Total Distributions

      —       (0.14 )       (0.01 ) 
  

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 7.55     $ 9.57      $ 10.13  
  

 

 

    

 

 

     

 

 

  

Total return(c)(d)

      (21.11 )%(b)(e)      (4.07 )%       1.37 %(e) 

RATIOS TO AVERAGE NET ASSETS:

        

Net assets, end of the period (000’s)

    $ 115     $ 113      $ 1  

Net expenses(f)

      1.20 %(g)      1.20 %       1.20 %(g) 

Gross expenses

      2.07 %(g)      2.71 %       13.05 %(g) 

Net investment income (loss)

      0.94 %(b)(g)      (0.07 )%       1.28 %(g) 

Portfolio turnover rate

      7 %      9 %       1 % 

 

 

*

From commencement of operations on December 15, 2020 through December 31, 2020.

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.03, total return would have been (21.32)% and the ratio of net investment income to average net assets would have been 0.61%.

(c)

A sales charge for Class A shares is not reflected in total return calculations.

(d)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(e)

Periods less than one year are not annualized.

(f)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(g)

Computed on an annualized basis for periods less than one year.

 

See accompanying notes to financial statements.

 

35  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     International Growth Fund—Class C  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Period Ended
December 31,
2020* 		 

Net asset value, beginning of the period

    $ 9.51     $ 10.13     $ 10.00  
  

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

  

Net investment income (loss)(a)

      0.02 (b)      (0.09 )      0.00 (c) 

Net realized and unrealized gain (loss)

      (2.06 )      (0.40 )      0.13  
  

 

 

    

 

 

    

 

 

  

Total from Investment Operations

      (2.04 )      (0.49 )      0.13  
  

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

       

Net investment income

      —       (0.00 )(c)      (0.00 )(c) 

Net realized capital gains

      —       (0.13 )      —  
  

 

 

    

 

 

    

 

 

  

Total Distributions

      —       (0.13 )      (0.00 ) 
  

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

    $ 7.47     $ 9.51     $ 10.13  
  

 

 

    

 

 

    

 

 

  

Total return(d)(e)

      (21.45 )%(b)(f)      (4.79 )%      1.33 %(f) 

RATIOS TO AVERAGE NET ASSETS:

       

Net assets, end of the period (000’s)

    $ 1     $ 38     $ 1  

Net expenses(g)

      1.95 %(h)      1.95 %      1.95 %(h) 

Gross expenses

      2.82 %(h)      3.46 %      13.78 %(h) 

Net investment income (loss)

      0.43 %(b)(h)      (0.90 )%      0.55 %(h) 

Portfolio turnover rate

      7 %      9 %      1 % 

 

 

*

From commencement of operations on December 15, 2020 through December 31, 2020.

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.01), total return would have been (21.56)% and the ratio of net investment loss to average net assets would have been (0.27)%.

(c)

Amount rounds to less than $0.01 per share.

(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.

 

|  36

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     International Growth Fund—Class N
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		      Period Ended
December 31,
2020*		  

Net asset value, beginning of the period

    $ 9.58     $ 10.13      $ 10.00  
  

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

   

Net investment income(a)

      0.05 (b)      0.03        0.01  

Net realized and unrealized gain (loss)

      (2.07 )      (0.42 )       0.13  
  

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (2.02 )      (0.39 )       0.14  
  

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

        

Net investment income

      —       (0.03 )       (0.01 ) 

Net realized capital gains

      —       (0.13 )       —  
  

 

 

    

 

 

     

 

 

  

Total Distributions

      —       (0.16 )       (0.01 ) 
  

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 7.56     $ 9.58      $ 10.13  
  

 

 

    

 

 

     

 

 

  

Total return(c)

      (21.09 )%(b)(d)      (3.77 )%       1.38 %(d) 

RATIOS TO AVERAGE NET ASSETS:

        

Net assets, end of the period (000’s)

    $ 18,119     $ 22,953      $ 15,206  

Net expenses(e)

      0.90 %(f)      0.90 %       0.90 %(f) 

Gross expenses

      1.54 %(f)      1.58 %       6.48 %(f) 

Net investment income

      1.22 %(b)(f)      0.29 %       1.43 %(f) 

Portfolio turnover rate

      7 %      9 %       1 % 

 

 

*

From commencement of operations on December 15, 2020 through December 31, 2020.

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.04, total return would have been (21.19)% and the ratio of net investment income to average net assets would have been 0.85%.

(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.

 

37  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     International Growth Fund—Class Y
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		      Period Ended
December 31,
2020*		  

Net asset value, beginning of the period

    $ 9.58     $ 10.13      $ 10.00  
  

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income(a)

      0.05 (b)      0.02        0.01  

Net realized and unrealized gain (loss)

      (2.07 )      (0.41 )       0.13  
  

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (2.02 )      (0.39 )       0.14  
  

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

        

Net investment income

      —       (0.03 )       (0.01 ) 

Net realized capital gains

      —       (0.13 )       —  
  

 

 

    

 

 

     

 

 

  

Total Distributions

      —       (0.16 )       (0.01 ) 
  

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 7.56     $ 9.58      $ 10.13  
  

 

 

    

 

 

     

 

 

  

Total return(c)

      (21.09 )%(b)(d)      (3.81 )%       1.38 %(d) 

RATIOS TO AVERAGE NET ASSETS:

        

Net assets, end of the period (000’s)

    $ 2,952     $ 222      $ 12  

Net expenses(e)

      0.95 %(f)      0.95 %       0.95 %(f) 

Gross expenses

      1.82 %(f)      2.46 %       12.58 %(f) 

Net investment income

      1.29 %(b)(f)      0.19 %       1.63 %(f) 

Portfolio turnover rate

      7 %      9 %       1 % 

 

 

*

From commencement of operations on December 15, 2020 through December 31, 2020.

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.05, total return would have been (21.19)% and the ratio of net investment income to average net assets would have been 1.25%.

(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.

 

|  38

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis Oakmark Fund—Class A  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 29.04     $ 23.20     $ 22.45     $ 19.44     $ 24.72      $ 21.37  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

       

Net investment income(a)

      0.07       0.07       0.11 (b)      0.18 (c)      0.10        0.11  

Net realized and unrealized gain (loss)

      (5.68 )      7.81       2.78       4.93       (3.28 )       4.28  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (5.61 )      7.88       2.89       5.11       (3.18 )       4.39  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

              

Net investment income

      —       (0.05 )      (0.12 )      (0.21 )      (0.08 )       (0.10 ) 

Net realized capital gains

      (0.36 )      (1.99 )      (2.02 )      (1.89 )      (2.02 )       (0.94 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.36 )      (2.04 )      (2.14 )      (2.10 )      (2.10 )       (1.04 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 23.07     $ 29.04     $ 23.20     $ 22.45     $ 19.44      $ 24.72  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return(d)

      (19.52 )%(e)(f)      33.97 %(e)      13.01 %(b)      26.77 %(c)      (13.01 )%       20.75 % 

RATIOS TO AVERAGE NET ASSETS:

              

Net assets, end of the period (000’s)

    $ 186,193     $ 222,435     $ 170,702     $ 181,417     $ 164,748      $ 203,792  

Net expenses

      1.05 %(g)(h)      1.12 %(g)(i)      1.20 %(j)      1.17 %      1.13 %       1.18 % 

Gross expenses

      1.08 %(h)      1.14 %      1.20 %(j)      1.17 %      1.13 %       1.18 % 

Net investment income

      0.55 %(h)      0.25 %      0.53 %(b)      0.85 %(c)      0.41 %       0.48 % 

Portfolio turnover rate

      26 %      23 %      22 %      15 %      39 %       16 % 

 

 

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.05, total return would have been 12.72% and the ratio of net investment income to average net assets would have been 0.27%.

(c)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.13, total return would have been 26.50% and the ratio of net investment income to average net assets would have been 0.62%.                

(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.

(i)

Effective July 1, 2021, the expense limit decreased from 1.30% to 1.05%.

(j)

Includes refund of prior year service fee of 0.01%.

 

See accompanying notes to financial statements.

 

39  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis Oakmark Fund—Class C  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 23.50     $ 19.17     $ 18.92     $ 16.66     $ 21.58      $ 18.83  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

       

Net investment income (loss)(a)

      (0.02 )      (0.12 )      (0.04 )(b)      0.02 (c)      (0.07 )       (0.05 ) 

Net realized and unrealized gain (loss)

      (4.58 )      6.44       2.31       4.20       (2.83 )       3.74  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (4.60 )      6.32       2.27       4.22       (2.90 )       3.69  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

              

Net investment income

      —       (0.00 )(d)      —       (0.07 )      —        (0.00 )(d) 

Net realized capital gains

      (0.36 )      (1.99 )      (2.02 )      (1.89 )      (2.02 )       (0.94 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.36 )      (1.99 )      (2.02 )      (1.96 )      (2.02 )       (0.94 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 18.54     $ 23.50     $ 19.17     $ 18.92     $ 16.66      $ 21.58  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return(e)

      (19.83 )%(f)(g)      32.99 %(f)      12.15 %(b)      25.82 %(c)      (13.63 )%       19.85 % 

RATIOS TO AVERAGE NET ASSETS:

              

Net assets, end of the period (000’s)

    $ 50,765     $ 50,042     $ 35,940     $ 54,384     $ 53,606      $ 62,272  

Net expenses

      1.80 %(h)(i)      1.87 %(h)(j)      1.95 %      1.92 %      1.88 %       1.93 % 

Gross expenses

      1.83 %(i)      1.89 %      1.95 %      1.92 %      1.88 %       1.93 % 

Net investment income (loss)

      (0.20 )%(i)      (0.49 )%      (0.23 )%(b)      0.12 %(c)      (0.33 )%       (0.27 )% 

Portfolio turnover rate

      26 %      23 %      22 %      15 %      39 %       16 % 

 

 

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.08), total return would have been 11.85% and the ratio of net investment loss to average net assets would have been (0.46)%.

(c)

Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.02), total return would have been 25.50% and the ratio of net investment loss to average net assets would have been (0.12)%.

(d)

Amount rounds to less than $0.01 per share.

(e)

A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

(f)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(g)

Periods less than one year are not annualized.

(h)

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.

(i)

Computed on an annualized basis for periods less than one year.

(j)

Effective July 1, 2021, the expense limit decreased from 2.05% to 1.80%.

 

See accompanying notes to financial statements.

 

|  40

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis Oakmark Fund—Class N  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Period Ended
December 31,
2017*		  

Net asset value, beginning of the period

    $ 31.13     $ 24.72     $ 23.78     $ 20.49     $ 25.91      $ 23.13  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

       

Net investment income(a)

      0.12       0.23       0.18 (b)      0.22 (c)      0.22        0.14  

Net realized and unrealized gain (loss)

      (6.10 )      8.31       2.98       5.25       (3.45 )       3.44  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (5.98 )      8.54       3.16       5.47       (3.23 )       3.58  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

              

Net investment income

      —       (0.14 )      (0.20 )      (0.29 )      (0.17 )       (0.17 ) 

Net realized capital gains

      (0.36 )      (1.99 )      (2.02 )      (1.89 )      (2.02 )       (0.63 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.36 )      (2.13 )      (2.22 )      (2.18 )      (2.19 )       (0.80 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 24.79     $ 31.13     $ 24.72     $ 23.78     $ 20.49      $ 25.91  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return(d)

      (19.40 )%(e)      34.54 %      13.41 %(b)      27.16 %(c)      (12.60 )%       15.46 %(e) 

RATIOS TO AVERAGE NET ASSETS:

              

Net assets, end of the period (000’s)

    $ 478     $ 682     $ 364     $ 801     $ 10      $ 1  

Net expenses(f)

      0.75 %(g)      0.80 %(h)      0.86 %      0.83 %      0.75 %       0.75 %(g) 

Gross expenses

      1.04 %(g)      1.55 %      1.05 %      1.25 %      3.79 %       13.79 %(g) 

Net investment income

      0.81 %(g)      0.79 %      0.85 %(b)      0.93 %(c)      0.88 %       0.84 %(g) 

Portfolio turnover rate

      26 %      23 %      22 %      15 %      39 %       16 %(i) 

 

 

*

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)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.14, total return would have been 13.13% and the ratio of net investment income to average net assets would have been 0.67%.

(c)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.22, total return would have been 26.90% and the ratio of net investment income to average net assets would have been 0.92%.

(d)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(e)

Periods less than one year are not annualized.

(f)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(g)

Computed on an annualized basis for periods less than one year.

(h)

Effective July 1, 2021, the expense limit decreased from 1.00% to 0.75%.

(i)

Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017.

 

See accompanying notes to financial statements.

 

41  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis Oakmark Fund—Class Y  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 31.04     $ 24.68     $ 23.75     $ 20.46     $ 25.90      $ 22.34  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income(a)

      0.12       0.17       0.17 (b)      0.27 (c)      0.17        0.17  

Net realized and unrealized gain (loss)

      (6.09 )      8.31       2.95       5.17       (3.44 )       4.48  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (5.97 )      8.48       3.12       5.44       (3.27 )       4.65  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.13 )      (0.17 )      (0.26 )      (0.15 )       (0.15 ) 

Net realized capital gains

      (0.36 )      (1.99 )      (2.02 )      (1.89 )      (2.02 )       (0.94 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.36 )      (2.12 )      (2.19 )      (2.15 )      (2.17 )       (1.09 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 24.71     $ 31.04     $ 24.68     $ 23.75     $ 20.46      $ 25.90  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return

      (19.43 )%(d)(e)      34.35 %(d)      13.28 %(b)      27.06 %(c)(d)      (12.76 )%       21.05 % 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 176,770     $ 99,008     $ 37,595     $ 46,836     $ 53,829      $ 49,955  

Net expenses

      0.80 %(f)(g)      0.86 %(f)(h)      0.95 %      0.91 %(f)      0.88 %       0.93 % 

Gross expenses

      0.83 %(g)      0.89 %      0.95 %      0.92 %      0.88 %       0.93 % 

Net investment income

      0.83 %(g)      0.56 %      0.79 %(b)      1.16 %(c)      0.68 %       0.71 % 

Portfolio turnover rate

      26 %      23 %      22 %      15 %      39 %       16 % 

 

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.12, total return would have been 13.00% and the ratio of net investment income to average net assets would have been 0.55%.

(c)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.20, total return would have been 26.80% and the ratio of net investment income to average net assets would have been 0.90%.

(d)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(e)

Periods less than one year are not annualized.

(f)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(g)

Computed on an annualized basis for periods less than one year.

(h)

Effective July 1, 2021, the expense limit decreased from 1.05% to 0.80%.

 

See accompanying notes to financial statements.

 

|  42

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis Oakmark International Fund—Class A  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 15.15     $ 14.15     $ 13.63     $ 11.29     $ 15.58      $ 12.15  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income (loss)(a)

      0.19       0.27 (b)      (0.00 )(c)      0.37 (d)      0.25        0.18  

Net realized and unrealized gain (loss)

      (3.11 )      0.96       0.55 (e)      2.38       (4.02 )       3.41  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (2.92 )      1.23       0.55       2.75       (3.77 )       3.59  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.23 )      (0.03 )      (0.41 )      (0.29 )       (0.16 ) 

Net realized capital gains

      —       —       —       —       (0.23 )       —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      —       (0.23 )      (0.03 )      (0.41 )      (0.52 )       (0.16 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 12.23     $ 15.15     $ 14.15     $ 13.63     $ 11.29      $ 15.58  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return(f)

      (19.27 )%(g)(h)      8.73 %(b)(g)      4.06 %(g)      24.35 %(d)      (24.15 )%       29.56 % 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 121,284     $ 152,900     $ 131,630     $ 172,906     $ 257,551      $ 603,988  

Net expenses

      1.15 %(i)(j)      1.17 %(i)(k)      1.29 %(i)(l)      1.29 %      1.31 %       1.32 % 

Gross expenses

      1.37 %(j)      1.34 %      1.36 %      1.29 %      1.31 %       1.32 % 

Net investment income (loss)

      2.79 %(j)      1.73 %(b)      (0.03 )%      2.91 %(d)      1.72 %       1.28 % 

Portfolio turnover rate

      20 %      37 %      63 %      28 %      50 %       40 % 

 

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend and tax reclaims. Without these, net investment income per share would have been $0.13, total return would have been 7.74% and the ratio of net investment income to average net assets would have been 0.84%.

(c)

Amount rounds to less than $0.01 per share.

(d)

Includes non-recurring dividends. Without this dividend, net investment income per share would have been $0.29, total return would have been 23.55% and the ratio of net investment income to average net assets would have been 2.26%.

(e)

The amount shown for a share outstanding does not correspond with the aggregate realized and unrealized gain (loss) on investments for the period due to the timing of sales and redemptions of fund shares in relation to fluctuating market values of investments of the Fund.

(f)

A sales charge for Class A shares is not reflected in total return calculations.

(g)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(h)

Periods less than one year are not annualized.

(i)

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.

(j)

Computed on an annualized basis for periods less than one year.

(k)

Effective July 1, 2021, the expense limit decreased from 1.20% to 1.15%.

(l)

Effective July 1, 2020, the expense limit decreased from 1.37% to 1.20%.

 

See accompanying notes to financial statements.

 

43  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis Oakmark International Fund—Class C  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 14.86     $ 13.85     $ 13.41     $ 11.11     $ 15.30      $ 11.96  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income (loss)(a)

      0.13       0.13 (b)      (0.08 )      0.26 (c)      0.13        0.06  

Net realized and unrealized gain (loss)

      (3.04 )      0.97       0.52 (d)      2.34       (3.92 )       3.35  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (2.91 )      1.10       0.44       2.60       (3.79 )       3.41  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.09 )      —       (0.30 )      (0.17 )       (0.07 ) 

Net realized capital gains

      —       —       —       —       (0.23 )       —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      —       (0.09 )      —       (0.30 )      (0.40 )       (0.07 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 11.95     $ 14.86     $ 13.85     $ 13.41     $ 11.11      $ 15.30  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return(e)

      (19.58 )%(f)(g)      7.92 %(b)(f)      3.28 %(f)      23.44 %(c)      (24.74 )%       28.55 % 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 45,885     $ 69,335     $ 96,772     $ 179,533     $ 212,618      $ 363,018  

Net expenses

      1.90 %(h)(i)      1.93 %(h)(j)      2.05 %(h)(k)      2.04 %      2.07 %       2.07 % 

Gross expenses

      2.12 %(i)      2.09 %      2.11 %      2.04 %      2.07 %       2.07 % 

Net investment income (loss)

      1.91 %(i)      0.85 %(b)      (0.76 )%      2.09 %(c)      0.94 %       0.42 % 

Portfolio turnover rate

      20 %      37 %      63 %      28 %      50 %       40 % 

 

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend and tax reclaims. Without these, net investment income per share would have been $0.02, total return would have been 6.98% and the ratio of net investment income to average net assets would have been 0.13%.

(c)

Includes non-recurring dividends. Without this dividend, net investment income per share would have been $0.18, total return would have been 22.63% and the ratio of net investment income to average net assets would have been 1.43%.

(d)

The amount shown for a share outstanding does not correspond with the aggregate realized and unrealized gain (loss) on investments for the period due to the timing of sales and redemptions of fund shares in relation to fluctuating market values of investments of the Fund.

(e)

A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

(f)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(g)

Periods less than one year are not annualized.

(h)

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.

(i)

Computed on an annualized basis for periods less than one year.

(j)

Effective July 1, 2021, the expense limit decreased from 1.95% to 1.90%.

(k)

Effective July 1, 2020, the expense limit decreased from 2.12% to 1.95%.

 

See accompanying notes to financial statements.

 

|  44

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis Oakmark International Fund—Class N  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Period Ended
December 31,
2017*		  

Net asset value, beginning of the period

    $ 15.08     $ 14.09     $ 13.56     $ 11.25     $ 15.58      $ 13.98  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income(a)

      0.30       0.38 (b)      0.04       0.33 (c)      0.28        0.15  

Net realized and unrealized gain (loss)

      (3.18 )      0.89       0.56 (d)      2.45       (4.02 )       1.66  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (2.88 )      1.27       0.60       2.78       (3.74 )       1.81  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.28 )      (0.07 )      (0.47 )      (0.36 )       (0.21 ) 

Net realized capital gains

      —       —       —       —       (0.23 )       —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      —       (0.28 )      (0.07 )      (0.47 )      (0.59 )       (0.21 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 12.20     $ 15.08     $ 14.09     $ 13.56     $ 11.25      $ 15.58  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return(e)

      (19.10 )%(f)      9.01 %(b)      4.44 %      24.75 %(c)      (23.94 )%       12.96 %(f) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 1,941     $ 704     $ 290     $ 811     $ 758      $ 1  

Net expenses(g)

      0.85 %(h)      0.87 %(i)      0.92 %(j)      0.94 %      0.99 %       0.92 %(h) 

Gross expenses

      1.05 %(h)      1.25 %      1.17 %      1.08 %      1.02 %       25.21 %(h) 

Net investment income

      4.54 %(h)      2.49 %(b)      0.37 %      2.56 %(c)      2.04 %       1.54 %(h) 

Portfolio turnover rate

      20 %      37 %      63 %      28 %      50 %       40 %(k) 

 

*

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)

Includes a non-recurring dividend and tax reclaims. Without these, net investment income per share would have been $0.11, total return would have been 8.09% and the ratio of net investment income to average net assets would have been 0.70%.

(c)

Includes non-recurring dividends. Without this dividend, net investment income per share would have been $0.27, total return would have been 23.94% and the ratio of net investment income to average net assets would have been 2.15%.

(d)

The amount shown for a share outstanding does not correspond with the aggregate realized and unrealized gain (loss) on investments for the period due to the timing of sales and redemptions of fund shares in relation to fluctuating market values of investments of the Fund.

(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.

(i)

Effective July 1, 2021, the expense limit decreased from 0.90% to 0.85%.

(j)

Effective July 1, 2020, the expense limit decreased from 1.07% to 0.90%.

(k)

Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017.

 

See accompanying notes to financial statements.

 

45  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis Oakmark International Fund—Class Y  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Period Ended
December 31,
2017*		  

Net asset value, beginning of the period

    $ 15.07     $ 14.08     $ 13.56     $ 11.25     $ 15.56      $ 13.98  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income(a)

      0.20       0.30 (b)      0.04       0.37 (c)      0.26        0.00 (d) 

Net realized and unrealized gain (loss)

      (3.09 )      0.96       0.55 (e)      2.40       (3.99 )       1.79  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (2.89 )      1.26       0.59       2.77       (3.73 )       1.79  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.27 )      (0.07 )      (0.46 )      (0.35 )       (0.21 ) 

Net realized capital gains

      —       —       —       —       (0.23 )       —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      —       (0.27 )      (0.07 )      (0.46 )      (0.58 )       (0.21 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 12.18     $ 15.07     $ 14.08     $ 13.56     $ 11.25      $ 15.56  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return

      (19.18 )%(f)(g)      8.97 %(b)(f)      4.32 %(f)      24.64 %(c)      (23.93 )%       12.79 %(g) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 221,863     $ 312,930     $ 275,468     $ 244,586     $ 215,123      $ 172,978  

Net expenses

      0.90 %(h)(i)      0.92 %(h)(j)      1.03 %(h)(k)      1.04 %      1.07 %       1.07 %(i) 

Gross expenses

      1.11 %(i)      1.09 %      1.11 %      1.04 %      1.07 %       1.07 %(i) 

Net investment income

      2.82 %(i)      1.96 %(b)      0.41 %      2.91 %(c)      1.85 %       0.03 %(i) 

Portfolio turnover rate

      20 %      37 %      63 %      28 %      50 %       40 %(l) 

 

*

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)

Includes a non-recurring dividend and tax reclaims. Without these, net investment income per share would have been $0.17, total return would have been 8.04% and the ratio of net investment income to average net assets would have been 1.07%.

(c)

Includes non-recurring dividends. Without this dividend, net investment income per share would have been $0.29, total return would have been 23.84% and the ratio of net investment income to average net assets would have been 2.29%.

(d)

Amount rounds to less than $0.01 per share.

(e)

The amount shown for a share outstanding does not correspond with the aggregate realized and unrealized gain (loss) on investments for the period due to the timing of sales and redemptions of fund shares in relation to fluctuating market values of investments of the Fund.

(f)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(g)

Periods less than one year are not annualized.

(h)

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.

(i)

Computed on an annualized basis for periods less than one year.

(j)

Effective July 1, 2021, the expense limit decreased from 0.95% to 0.90%.

(k)

Effective July 1, 2020, the expense limit decreased from 1.12% to 0.95%.

(l)

Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017.

 

See accompanying notes to financial statements.

 

|  46

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis U.S. Equity Opportunities Fund—Class A  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		      Year Ended
December 31,
2020		      Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 43.12     $ 39.04      $ 36.53      $ 31.00     $ 36.90      $ 30.27  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income (loss)(a)

      0.02       (0.11 )       (0.05 )       0.15 (b)      0.08        0.06  

Net realized and unrealized gain (loss)

      (10.38 )      8.99        7.66        9.34       (2.51 )       7.88  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (10.36 )      8.88        7.61        9.49       (2.43 )       7.94  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       —        —        (0.17 )      (0.05 )       (0.06 ) 

Net realized capital gains

      (1.58 )      (4.80 )       (5.10 )       (3.79 )      (3.42 )       (1.25 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Distributions

      (1.58 )      (4.80 )       (5.10 )       (3.96 )      (3.47 )       (1.31 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 31.18     $ 43.12      $ 39.04      $ 36.53     $ 31.00      $ 36.90  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total return(c)

      (24.77 )%(d)      23.14 %       22.09 %       31.03 %(b)      (6.48 )%       26.28 % 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 529,335     $ 733,423      $ 649,754      $ 616,922     $ 523,665      $ 604,330  

Net expenses

      1.14 %(e)      1.14 %       1.17 %       1.17 %      1.16 %       1.21 %(f) 

Gross expenses

      1.14 %(e)      1.14 %       1.17 %       1.17 %      1.16 %       1.21 % 

Net investment income (loss)

      0.13 %(e)      (0.25 )%       (0.14 )%       0.42 %(b)      0.20 %       0.16 % 

Portfolio turnover rate

      22 %      18 %       26 %       12 %      23 %       17 % 

 

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Includes non-recurring dividends. Without this dividend, net investment income per share would have been $0.09, total return would have been 30.87% and the ratio of net investment income to average net assets would have been 0.26%.

(c)

A sales charge for Class A shares is not reflected in total return calculations.

(d)

Periods less than one year are not annualized.

(e)

Computed on an annualized basis for periods less than one year.

(f)

Effective July 1, 2017, the expense limit decreased from 1.25% to 1.20%.

 

See accompanying notes to financial statements.

 

47  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis U.S. Equity Opportunities Fund—Class C  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		      Year Ended
December 31,
2020		      Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 21.82     $ 21.89      $ 22.65      $ 20.42     $ 25.73      $ 21.54  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment loss(a)

      (0.06 )      (0.24 )       (0.19 )       (0.07 )(b)      (0.14 )       (0.14 ) 

Net realized and unrealized gain (loss)

      (5.08 )      4.97        4.53        6.10       (1.75 )       5.58  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (5.14 )      4.73        4.34        6.03       (1.89 )       5.44  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       —        —        (0.01 )      —        (0.00 )(c) 

Net realized capital gains

      (1.58 )      (4.80 )       (5.10 )       (3.79 )      (3.42 )       (1.25 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Distributions

      (1.58 )      (4.80 )       (5.10 )       (3.80 )      (3.42 )       (1.25 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 15.10     $ 21.82      $ 21.89      $ 22.65     $ 20.42      $ 25.73  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total return(d)

      (25.04 )%(e)      22.27 %       21.15 %       30.06 %(b)      (7.18 )%       25.35 % 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 36,164     $ 57,492      $ 63,126      $ 77,924     $ 78,783      $ 112,615  

Net expenses

      1.89 %(f)      1.89 %       1.92 %       1.92 %      1.91 %       1.96 %(g) 

Gross expenses

      1.89 %(f)      1.89 %       1.92 %       1.92 %      1.91 %       1.96 % 

Net investment loss

      (0.63 )%(f)      (0.99 )%       (0.87 )%       (0.31 )%(b)      (0.54 )%       (0.59 )% 

Portfolio turnover rate

      22 %      18 %       26 %       12 %      23 %       17 % 

 

(a)

Per share net investment loss has been calculated using the average shares outstanding during the period.

(b)

Includes non-recurring dividends. Without this dividend, net investment loss per share would have been $(0.11), total return would have been 29.85% and the ratio of net investment loss to average net assets would have been (0.48)%.

(c)

Amount rounds to less than $0.01 per share.

(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)

Computed on an annualized basis for periods less than one year.

(g)

Effective July 1, 2017, the expense limit decreased from 2.00% to 1.95%.

 

See accompanying notes to financial statements.

 

|  48

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis U.S. Equity Opportunities Fund—Class N  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		      Year Ended
December 31,
2020		      Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Period Ended
December 31,
2017*		  

Net asset value, beginning of the period

    $ 54.14     $ 47.84      $ 43.61      $ 36.37     $ 42.63      $ 37.62  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income(a)

      0.11       0.03        0.13        0.19 (b)      0.25        0.12  

Net realized and unrealized gain (loss)

      (13.13 )      11.07        9.20        11.14       (2.91 )       6.20  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (13.02 )      11.10        9.33        11.33       (2.66 )       6.32  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       —        —        (0.30 )      (0.18 )       (0.16 ) 

Net realized capital gains

      (1.58 )      (4.80 )       (5.10 )       (3.79 )      (3.42 )       (1.15 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Distributions

      (1.58 )      (4.80 )       (5.10 )       (4.09 )      (3.60 )       (1.31 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 39.54     $ 54.14      $ 47.84      $ 43.61     $ 36.37      $ 42.63  
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total return(c)

      (24.64 )%(d)      23.53 %       22.48 %       31.44 %(b)      (6.11 )%       16.78 %(d) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 162     $ 177      $ 172      $ 654     $ 1      $ 1  

Net expenses(e)

      0.83 %(f)      0.83 %       0.84 %       0.83 %      0.76 %       0.78 %(f)(g) 

Gross expenses

      1.90 %(f)      1.38 %       1.13 %       1.42 %      13.35 %       13.41 %(f) 

Net investment income

      0.46 %(f)      0.06 %       0.31 %       0.44 %(b)      0.56 %       0.44 %(f) 

Portfolio turnover rate

      22 %      18 %       26 %       12 %      23 %       17 %(h) 

 

*

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)

Includes non-recurring dividends. Without this dividend, net investment income per share would have been $0.19, total return would have been 31.27% and the ratio of net investment income to average net assets would have been 0.44%.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Periods less than one year are not annualized.

(e)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(f)

Computed on an annualized basis for periods less than one year.

(g)

Effective July 1, 2017, the expense limit decreased from 0.95% to 0.90%.

(h)

Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017.

 

See accompanying notes to financial statements.

 

49  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Natixis U.S. Equity Opportunities Fund—Class Y  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		      Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 53.99     $ 47.74     $ 43.56      $ 36.33     $ 42.61      $ 34.77  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income(a)

      0.09       0.00 (b)      0.05        0.29 (c)      0.20        0.16  

Net realized and unrealized gain (loss)

      (13.09 )      11.05       9.23        10.99       (2.92 )       9.07  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (13.00 )      11.05       9.28        11.28       (2.72 )       9.23  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       —       —        (0.26 )      (0.14 )       (0.14 ) 

Net realized capital gains

      (1.58 )      (4.80 )      (5.10 )       (3.79 )      (3.42 )       (1.25 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total Distributions

      (1.58 )      (4.80 )      (5.10 )       (4.05 )      (3.56 )       (1.39 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 39.41     $ 53.99     $ 47.74      $ 43.56     $ 36.33      $ 42.61  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total return

      (24.67 )%(d)      23.48 %      22.36 %       31.36 %(c)(e)      (6.24 )%       26.60 % 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 229,334     $ 284,738     $ 243,302      $ 283,864     $ 296,255      $ 285,008  

Net expenses

      0.89 %(f)      0.89 %      0.92 %       0.91 %(g)      0.91 %       0.95 %(h) 

Gross expenses

      0.89 %(f)      0.89 %      0.92 %       0.92 %      0.91 %       0.95 % 

Net investment income

      0.39 %(f)      0.00 %(i)      0.13 %       0.69 %(c)      0.45 %       0.40 % 

Portfolio turnover rate

      22 %      18 %      26 %       12 %      23 %       17 % 

 

(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 non-recurring dividends. Without this dividend, net investment income per share would have been $0.22, total return would have been 31.16% and the ratio of net investment income to average net assets would have been 0.53%.

(d)

Periods less than one year are not annualized.

(e)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(f)

Computed on an annualized basis for periods less than one year.

(g)

The administrator 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)

Effective July 1, 2017, the expense limit decreased from 1.00% to 0.95%.

(i)

Amount rounds to less than 0.01%.

 

See accompanying notes to financial statements.

 

|  50

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Vaughan Nelson Mid Cap Fund—Class A  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 22.70     $ 21.79     $ 22.42     $ 17.37     $ 22.65      $ 20.55  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income(a)

      0.07       0.05       0.07       0.03       0.09        0.17 (b) 

Net realized and unrealized gain (loss)

      (3.30 )(c)      4.52       1.96       5.21       (3.71 )       2.48  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (3.23 )      4.57       2.03       5.24       (3.62 )       2.65  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.04 )      (0.04 )      (0.02 )      (0.15 )       (0.18 ) 

Net realized capital gains

      (0.51 )      (3.62 )      (2.62 )      (0.17 )      (1.51 )       (0.37 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.51 )      (3.66 )      (2.66 )      (0.19 )      (1.66 )       (0.55 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 18.96     $ 22.70     $ 21.79     $ 22.42     $ 17.37      $ 22.65  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return(d)

      (14.47 )%(e)(f)      21.32 %(e)      10.46 %(e)      30.21 %(e)      (16.10 )%       12.93 %(b) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 32,690     $ 37,849     $ 30,567     $ 33,434     $ 43,769      $ 67,186  

Net expenses

      1.15 %(g)(h)      1.17 %(g)(i)      1.20 %(g)      1.25 %(g)(j)(k)      1.24 %       1.22 % 

Gross expenses

      1.19 %(h)      1.23 %      1.29 %      1.28 %(j)      1.24 %       1.22 % 

Net investment income

      0.66 %(h)      0.22 %      0.35 %      0.16 %      0.42 %       0.77 %(b) 

Portfolio turnover rate

      23 %      71 %      52 %      52 %      44 %       42 % 

 

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.09, total return would have been 12.53% and the ratio of net investment income to average net assets would have been 0.41%.

(c)

Includes a class action settlement payment of $0.02 per share. See Note 8 of Notes to Financial Statements.

(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.

(i)

Effective July 1, 2021, the expense limit decreased from 1.20% to 1.15%.

(j)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.23% and the ratio of gross expenses would have been 1.26%.

(k)

Effective July 1, 2019, the expense limit decreased from 1.40% to 1.20%.

 

See accompanying notes to financial statements.

 

51  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Vaughan Nelson Mid Cap Fund—Class C  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 20.58     $ 20.15     $ 21.06     $ 16.43     $ 21.50      $ 19.51  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income (loss)(a)

      (0.01 )      (0.13 )      (0.08 )      (0.10 )      (0.08 )       0.00 (b)(c) 

Net realized and unrealized gain (loss)

      (2.98 )(d)      4.18       1.79       4.90       (3.48 )       2.36  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (2.99 )      4.05       1.71       4.80       (3.56 )       2.36  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.00 )(b)      —       (0.00 )(b)      —        —  

Net realized capital gains

      (0.51 )      (3.62 )      (2.62 )      (0.17 )      (1.51 )       (0.37 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.51 )      (3.62 )      (2.62 )      (0.17 )      (1.51 )       (0.37 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 17.08     $ 20.58     $ 20.15     $ 21.06     $ 16.43      $ 21.50  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return(e)

      (14.80 )%(f)(g)      20.44 %(f)      9.60 %(f)      29.25 %(f)      (16.71 )%       12.11 %(c) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 8,425     $ 11,436     $ 14,023     $ 21,932     $ 23,967      $ 47,559  

Net expenses

      1.90 %(h)(i)      1.93 %(h)(j)      1.95 %(h)      1.99 %(h)(k)(l)      1.98 %       1.97 % 

Gross expenses

      1.94 %(i)      1.98 %      2.04 %      2.02 %(k)      1.98 %       1.97 % 

Net investment income (loss)

      (0.12 )%(i)      (0.56 )%      (0.42 )%      (0.50 )%      (0.36 )%       0.00 %(c)(m) 

Portfolio turnover rate

      23 %      71 %      52 %      52 %      44 %       42 % 

 

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.07), total return would have been 11.70% and the ratio of net investment loss to average net assets would have been (0.35)%.

(d)

Includes a class action settlement payment of $0.02 per share. See Note 8 of Notes to Financial Statements.

(e)

A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

(f)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(g)

Periods less than one year are not annualized.

(h)

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.

(i)

Computed on an annualized basis for periods less than one year.

(j)

Effective July 1, 2021, the expense limit decreased from 1.95% to 1.90%.

(k)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.98% and the ratio of gross expenses would have been 2.01%.

(l)

Effective July 1, 2019, the expense limit decreased from 2.15% to 1.95%.

(m)

Amount rounds to less than 0.01%.

 

See accompanying notes to financial statements.

 

|  52

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Vaughan Nelson Mid Cap Fund—Class N  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 23.05     $ 22.07     $ 22.66     $ 17.54     $ 22.87      $ 20.75  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income(a)

      0.10       0.14       0.13       0.11       0.17        0.25 (b) 

Net realized and unrealized gain (loss)

      (3.36 )(c)      4.58       2.00       5.27       (3.75 )       2.51  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (3.26 )      4.72       2.13       5.38       (3.58 )       2.76  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.12 )      (0.10 )      (0.09 )      (0.24 )       (0.27 ) 

Net realized capital gains

      (0.51 )      (3.62 )      (2.62 )      (0.17 )      (1.51 )       (0.37 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.51 )      (3.74 )      (2.72 )      (0.26 )      (1.75 )       (0.64 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 19.28     $ 23.05     $ 22.07     $ 22.66     $ 17.54      $ 22.87  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return

      (14.38 )%(d)      21.70 %(e)      10.83 %(e)      30.67 %(e)      (15.78 )%       13.31 %(b) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 73,157     $ 91,416     $ 17,965     $ 18,262     $ 70,902      $ 134,205  

Net expenses

      0.85 %(f)      0.86 %(g)(h)      0.90 %(g)      0.92 %(g)(i)(j)      0.88 %       0.88 % 

Gross expenses

      0.85 %(f)      0.89 %      0.94 %      0.93 %(i)      0.88 %       0.88 % 

Net investment income

      0.95 %(f)      0.55 %      0.65 %      0.51 %      0.76 %       1.16 %(b) 

Portfolio turnover rate

      23 %      71 %      52 %      52 %      44 %       42 % 

 

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.17, total return would have been 12.92% and the ratio of net investment income to average net assets would have been 0.76%.

(c)

Includes a class action settlement payment of $0.02 per share. See Note 8 of Notes to Financial Statements.

(d)

Periods less than one year are not annualized.

(e)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(f)

Computed on an annualized basis for periods less than one year.

(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)

Effective July 1, 2021, the expense limit decreased from 0.90% to 0.85%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.91% and the ratio of gross expenses would have been 0.91%.

(j) Effective July 1, 2019, the expense limit decreased from 1.10% to 0.90%.

 

See accompanying notes to financial statements.

 

53  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Vaughan Nelson Mid Cap Fund—Class Y  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 23.09     $ 22.10     $ 22.69     $ 17.57     $ 22.89      $ 20.77  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income(a)

      0.09       0.11       0.12       0.10       0.15        0.23 (b) 

Net realized and unrealized gain (loss)

      (3.36 )(c)      4.60       2.00       5.26       (3.75 )       2.51  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (3.27 )      4.71       2.12       5.36       (3.60 )       2.74  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.10 )      (0.09 )      (0.07 )      (0.21 )       (0.25 ) 

Net realized capital gains

      (0.51 )      (3.62 )      (2.62 )      (0.17 )      (1.51 )       (0.37 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.51 )      (3.72 )      (2.71 )      (0.24 )      (1.72 )       (0.62 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 19.31     $ 23.09     $ 22.10     $ 22.69     $ 17.57      $ 22.89  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return

      (14.40 )%(d)(e)      21.65 %(d)      10.76 %(d)      30.52 %(d)      (15.85 )%       13.19 %(b) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 173,730     $ 226,838     $ 227,501     $ 298,705     $ 453,085      $ 774,304  

Net expenses

      0.90 %(f)(g)      0.93 %(f)(h)      0.95 %(f)      1.00 %(f)(i)(j)      0.99 %       0.97 % 

Gross expenses

      0.94 %(g)      0.98 %      1.04 %      1.02 %(i)      0.99 %       0.97 % 

Net investment income

      0.88 %(g)      0.45 %      0.60 %      0.48 %      0.66 %       1.04 %(b) 

Portfolio turnover rate

      23 %      71 %      52 %      52 %      44 %       42 % 

 

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.15, total return would have been 12.80% and the ratio of net investment income to average net assets would have been 0.67%.

(c)

Includes a class action settlement payment of $0.02 per share. See Note 8 of Notes to Financial Statements.

(d)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(e)

Periods less than one year are not annualized.

(f)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(g)

Computed on an annualized basis for periods less than one year.

(h)

Effective July 1, 2021, the expense limit decreased from 0.95% to 0.90%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.98% and the ratio of gross expenses would have been 1.01%.

(j)

Effective July 1, 2019, the expense limit decreased from 1.15% to 0.95%.

 

See accompanying notes to financial statements.

 

|  54

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Vaughan Nelson Small Cap Value Fund—Class A  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		     Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 17.87     $ 16.69     $ 15.45     $ 12.48     $ 18.71     $ 19.79  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income (loss)(a)

      (0.01 )      0.00 (b)(c)      0.00 (c)      0.02       0.01       (0.01 ) 

Net realized and unrealized gain (loss)

      (2.28 )      4.98       1.33       3.06       (2.76 )      1.21  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

      (2.29 )      4.98       1.33       3.08       (2.75 )      1.20  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.01 )      (0.00 )(c)      (0.03 )      (0.00 )(c)      (0.00 )(c) 

Net realized capital gains

      (0.37 )      (3.79 )      (0.09 )      (0.08 )      (3.48 )      (2.28 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

      (0.37 )      (3.80 )      (0.09 )      (0.11 )      (3.48 )      (2.28 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

    $ 15.21     $ 17.87     $ 16.69     $ 15.45     $ 12.48     $ 18.71  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(d)

      (13.00 )%(e)(f)      30.24 %(b)(e)      8.91 %(e)      24.66 %(e)      (14.84 )%      6.28 % 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 69,042     $ 81,493     $ 61,571     $ 67,525     $ 66,376     $ 93,751  

Net expenses

      1.25 %(g)(h)      1.27 %(g)(i)      1.32 %(g)(j)      1.40 %(g)(k)      1.38 %      1.36 % 

Gross expenses

      1.34 %(h)      1.43 %      1.53 %      1.47 %      1.38 %      1.36 % 

Net investment income (loss)

      (0.13 )%(h)      0.01 %(b)      0.02 %      0.12 %      0.03 %      (0.03 )% 

Portfolio turnover rate

      30 %      92 %      105 %      61 %      70 %      92 % 

 

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.05), total return would have been 29.95% and the ratio of net investment loss to average net assets would have been (0.25)%.

(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.

(i)

Effective July 1, 2021, the expense limit decreased from 1.30% to 1.25%.

(j)

Effective July 1, 2020, the expense limit decreased from 1.34% to 1.30%.

(k)

Effective July 1, 2019, the expense limit decreased from 1.45% to 1.34%.

 

See accompanying notes to financial statements.

 

55  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Vaughan Nelson Small Cap Value Fund—Class C  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		     Year Ended
December 31,
2017		  

Net asset value, beginning of the period

    $ 6.94     $ 8.34     $ 7.84     $ 6.41     $ 11.67     $ 13.26  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment loss(a)

      (0.03 )      (0.06 )(b)      (0.05 )      (0.05 )      (0.09 )      (0.10 ) 

Net realized and unrealized gain (loss)

      (0.87 )      2.45       0.64       1.57       (1.69 )      0.79  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

      (0.90 )      2.39       0.59       1.52       (1.78 )      0.69  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       —       (0.00 )(c)      (0.01 )      (0.00 )(c)      (0.00 )(c) 

Net realized capital gains

      (0.37 )      (3.79 )      (0.09 )      (0.08 )      (3.48 )      (2.28 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

      (0.37 )      (3.79 )      (0.09 )      (0.09 )      (3.48 )      (2.28 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

    $ 5.67     $ 6.94     $ 8.34     $ 7.84     $ 6.41     $ 11.67  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(d)

      (13.47 )%(e)(f)      29.45 %(b)(e)      8.08 %(e)      23.69 %(e)      (15.51 )%      5.50 % 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 838     $ 966     $ 983     $ 1,450     $ 3,480     $ 15,756  

Net expenses

      2.00 %(g)(h)      2.03 %(g)(i)      2.07 %(g)(j)      2.16 %(g)(k)      2.12 %      2.11 % 

Gross expenses

      2.09 %(h)      2.19 %      2.28 %      2.23 %      2.12 %      2.11 % 

Net investment loss

      (0.88 )%(h)      (0.67 )%(b)      (0.71 )%      (0.68 )%      (0.83 )%      (0.79 )% 

Portfolio turnover rate

      30 %      92 %      105 %      61 %      70 %      92 % 

 

(a)

Per share net investment loss has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment loss per share would have been $(0.10), total return would have been 29.09% and the ratio of net investment loss to average net assets would have been (0.99)%.

(c)

Amount rounds to less than $0.01 per share.

(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.

(i)

Effective July 1, 2021, the expense limit decreased from 2.05% to 2.00%.

(j)

Effective July 1, 2020, the expense limit decreased from 2.09% to 2.05%.

(k)

Effective July 1, 2019, the expense limit decreased from 2.20% to 2.09%.

 

See accompanying notes to financial statements.

 

|  56

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Vaughan Nelson Small Cap Value Fund—Class N  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		      Period Ended
December 31,
2017*		  

Net asset value, beginning of the period

    $ 18.96     $ 17.52     $ 16.20     $ 13.08     $ 19.37      $ 19.55  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income(a)

      0.01       0.01 (b)      0.04       0.08       0.08        0.07  

Net realized and unrealized gain (loss)

      (2.42 )      5.29       1.42       3.20       (2.86 )       1.35  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (2.41 )      5.30       1.46       3.28       (2.78 )       1.42  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.07 )      (0.05 )      (0.08 )      (0.03 )       (0.02 ) 

Net realized capital gains

      (0.37 )      (3.79 )      (0.09 )      (0.08 )      (3.48 )       (1.58 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.37 )      (3.86 )      (0.14 )      (0.16 )      (3.51 )       (1.60 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 16.18     $ 18.96     $ 17.52     $ 16.20     $ 13.08      $ 19.37  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return(c)

      (12.89 )%(d)      30.64 %(b)      9.27 %      25.08 %      (14.48 )%       7.17 %(d) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 1,207     $ 1,383     $ 23     $ 21     $ 1      $ 1  

Net expenses(e)

      0.95 %(f)      0.97 %(g)      1.02 %(h)      1.03 %(i)      0.96 %       0.96 %(f) 

Gross expenses

      1.13 %(f)      1.19 %      6.54 %      11.80 %      15.17 %       14.68 %(f) 

Net investment income

      0.17 %(f)      0.03 %(b)      0.31 %      0.52 %      0.43 %       0.56 %(f) 

Portfolio turnover rate

      30 %      92 %      105 %      61 %      70 %       92 %(j) 

 

*

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)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.01, total return would have been 30.37% and the ratio of net investment income to average net assets would have been 0.03%.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Periods less than one year are not annualized.

(e)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(f)

Computed on an annualized basis for periods less than one year.

(g)

Effective July 1, 2021, the expense limit decreased from 1.00% to 0.95%.

(h)

Effective July 1, 2020, the expense limit decreased from 1.04% to 1.00%.

(i)

Effective July 1, 2019, the expense limit decreased from 1.15% to 1.04%.

(j)

Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017.

 

See accompanying notes to financial statements.

 

57  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Vaughan Nelson Small Cap Value Fund—Class Y  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended

December 31,

2021		     Year Ended

December 31,

2020		     Year Ended

December 31,

2019		     Year Ended

December 31,

2018		      Year Ended

December 31,

2017		  

Net asset value, beginning of the period

    $ 18.95     $ 17.51     $ 16.19     $ 13.08     $ 19.37      $ 20.36  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income(a)

      0.01       0.06 (b)      0.04       0.05       0.04        0.05  

Net realized and unrealized gain (loss)

      (2.42 )      5.23       1.41       3.21       (2.84 )       1.25  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (2.41 )      5.29       1.45       3.26       (2.80 )       1.30  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.06 )      (0.04 )      (0.07 )      (0.01 )       (0.01 ) 

Net realized capital gains

      (0.37 )      (3.79 )      (0.09 )      (0.08 )      (3.48 )       (2.28 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.37 )      (3.85 )      (0.13 )      (0.15 )      (3.49 )       (2.29 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 16.17     $ 18.95     $ 17.51     $ 16.19     $ 13.08      $ 19.37  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total return

      (12.89 )%(c)(d)      30.61 %(b)(c)      9.23 %(c)      24.88 %(c)      (14.61 )%       6.60 % 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 59,981     $ 66,054     $ 49,315     $ 44,482     $ 58,538      $ 176,940  

Net expenses

      1.00 %(e)(f)      1.02 %(e)(g)      1.07 %(e)(h)      1.15 %(e)(i)      1.12 %       1.11 % 

Gross expenses

      1.09 %(f)      1.18 %      1.28 %      1.23 %      1.12 %       1.11 % 

Net investment income

      0.12 %(f)      0.28 %(b)      0.26 %      0.35 %      0.22 %       0.23 % 

Portfolio turnover rate

      30 %      92 %      105 %      61 %      70 %       92 % 

 

 

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Includes a non-recurring dividend. Without this dividend, net investment income per share would have been $0.00, total return would have been 30.26% and the ratio of net investment income to average net assets would have been 0.01%.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Periods less than one year are not annualized.

(e)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(f)

Computed on an annualized basis for periods less than one year.

(g)

Effective July 1, 2021, the expense limit decreased from 1.05% to 1.00%.

(h)

Effective July 1, 2020, the expense limit decreased from 1.09% to 1.05%.

(i)

Effective July 1, 2019, the expense limit decreased from 1.20% to 1.09%.

 

See accompanying notes to financial statements.

 

|  58

Notes to Financial Statements

 

June 30, 2022 (Unaudited)

 

1.  Organization.  Loomis Sayles Funds II, Natixis Funds Trust I and Natixis Funds Trust II (the “Trusts” and each a “Trust”) are each organized as a Massachusetts business trust. Each Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Each Declaration of Trust permits the Board of Trustees to authorize the issuance of an unlimited number of shares of the Trust in multiple series. The financial statements for certain funds of the Trusts are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:

Loomis Sayles Funds II:

Loomis Sayles International Growth Fund (the “International Growth Fund”)

Natixis Funds Trust I:

Natixis Oakmark International Fund

Natixis U.S. Equity Opportunities Fund (the “U.S. Equity Opportunities Fund”)

Vaughan Nelson Small Cap Value Fund (the “Small Cap Value Fund”)

Natixis Funds Trust II:

Natixis Oakmark Fund

Vaughan Nelson Mid Cap Fund (the “Mid Cap Fund”)

Each Fund is a diversified investment company, except for International Growth Fund, which is a non-diversified investment company.

Each Fund offers Class A, Class C, Class N and Class Y shares.

Class A shares are sold with a maximum front-end sales charge of 5.75%. Class C shares do not pay a front-end sales charge, pay higher Rule 12b-1 fees than Class A shares for eight years (at which point they automatically convert to Class A shares) (prior to May 1, 2021, Class C shares automatically converted to Class A shares after ten years) and may be subject to a contingent deferred sales charge (“CDSC”) of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are offered with an initial minimum investment of $1,000,000. Class Y shares are offered with an initial minimum investment of $100,000. Certain categories of investors are exempted from the minimum investment amounts for Class N and Class Y as outlined in the relevant Funds’ prospectus.

Most expenses can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the Funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV and Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”) and Natixis ETF Trust and Natixis ETF Trust II (“Natixis ETF Trusts”). Expenses of a Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (such as the Rule 12b-1 fees applicable to Class A and Class C), and transfer agent fees are borne collectively for Class A, Class C and Class Y, and individually for Class N. In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of the Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

2.  Significant Accounting Policies.  The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements follow the accounting and reporting guidelines provided for investment companies and are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions subsequent to period-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.

a.  Valuation.  Fund securities and other investments are valued at market value based on market quotations obtained or determined by independent pricing services recommended by the adviser or sub-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 or sub-adviser pursuant to procedures approved by the Board of Trustees, as described below. Market value is determined as follows:

Listed equity securities (including shares of closed-end investment companies and exchange-traded funds) are valued at the last sale price quoted on the exchange where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking an NOCP, at the most recent bid quotations on the applicable NASDAQ Market. Unlisted equity securities (except unlisted preferred equity securities) are valued at the last sale price quoted in the market where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. If there is no last sale price or closing bid quotation available,

 

59  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

unlisted equity securities will be valued using evaluated bids furnished by an independent pricing service, if available. In some foreign markets, an official close price and a last sale price may be available from the foreign exchange or market. In those cases, the official close price is used. Debt securities and unlisted preferred equity securities are valued based on evaluated bids furnished to the 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. Forward foreign currency contracts are valued utilizing interpolated rates determined based on information provided by an independent pricing service.

Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees. The Funds may also value securities and other investments at fair value in other circumstances such as when extraordinary events occur after the close of a foreign market but prior to the close of the New York Stock Exchange. This may include situations relating to a single issuer (such as a declaration of bankruptcy or a delisting of the issuer’s security from the primary market on which it has traded) as well as events affecting the securities markets in general (such as market disruptions or closings and significant fluctuations in U.S. and/or foreign markets). When fair valuing its securities or other investments, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities or other market activity and/or significant events that occur after the close of the foreign market and before the time the Fund’s net asset value (“NAV”) is calculated. Fair value pricing may require subjective determinations about the value of a security, and fair values used to determine a Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same securities. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities held by a Fund.

As of June 30, 2022, securities held by the Funds were fair valued as follows:

 

Fund

   

Equity securities1

     

Percentage of
Net Assets

  

International Growth Fund

    $ 13,939,677        65.8 % 

Natixis Oakmark International Fund

      349,037,004        89.3 % 

 

1

Certain foreign equity securities were fair valued pursuant to procedures approved by the Board of Trustees as events occurring after the close of the foreign market were believed to materially affect the value of those securities.

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, are recorded on the ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Dividends reinvested and stock dividends are reflected as non-cash dividends on the Statements of Operations. Interest income is increased by the accretion of discount and decreased by the amortization of premium, if applicable. Distributions received from investments in securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds’ investments in real estate investment trusts (“REITs”) are reported to the Funds after the end of the fiscal year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the fiscal year. Estimates are based on the most recent REIT distribution information available. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

c.  Foreign Currency Translation.  The books and records of the Funds are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars, 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 amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities, other than investment securities, as of the end of the fiscal period, resulting from changes in exchange rates. Net realized foreign exchange gains or losses and the net change in unrealized foreign exchange gains or losses are disclosed in the Statements of Operations. For federal income tax purposes, net realized foreign exchange gains or losses are characterized as ordinary income, and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.

 

|  60

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

The values of investment securities are presented at the foreign exchange rates prevailing at the end of the period for financial reporting purposes. Net realized and unrealized gains or losses on investments reported in the Statements of Operations reflect gains or losses resulting from changes in exchange rates and fluctuations which arise due to changes in market prices of investment securities. For federal income tax purposes, a portion of the net realized gain or loss on investments arising from changes in exchange rates, which is reflected in the Statements of Operations, may be characterized as ordinary income and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.

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.  Forward Foreign Currency Contracts.  A Fund may enter into forward foreign currency contracts, including forward foreign cross currency contracts, to acquire exposure to foreign currencies or to hedge the Fund’s investments against currency fluctuation. A contract can also be used to offset a previous contract. These contracts involve market risk in excess of the unrealized appreciation (depreciation) reflected in the Funds’ Statements of Assets and Liabilities. The U.S. dollar value of the currencies a Fund has committed to buy or sell represents the aggregate exposure to each currency a Fund has acquired or hedged through currency contracts outstanding at period end. Gains or losses are recorded for financial statement purposes as unrealized until settlement date. Contracts are traded over-the-counter directly with a counterparty. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Certain contracts may require the movement of cash and/or securities as collateral for the Fund’s or counterparty’s net obligations under the contracts. Forward foreign currency contracts outstanding at the end of the period, if any, are listed in each applicable Fund’s Portfolio of Investments.

e.  Federal and Foreign Income Taxes.  The Trusts treat each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of June 30, 2022 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years, where applicable, remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

A Fund may be subject to foreign withholding taxes on investment income and taxes on capital gains on investments that are accrued and paid based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign withholding taxes on dividend and interest income are reflected on the Statements of Operations as a reduction of investment income, net of amounts that have been or are expected to be reclaimed and paid. 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 are expected to be filed and paid 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.

Certain Funds have filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries (EU reclaims) and may continue to make such filings when it is determined to be in the best interest of the Funds and their shareholders. These filings are subject to various administrative proceedings by the local jurisdictions’ tax authorities within the European Union, as well as a number of related judicial proceedings. EU reclaims are recognized by a Fund when deemed more likely than not to be collected, and are reflected as a reduction of foreign taxes withheld in the Statements of Operations. Any related receivable is reflected as tax reclaims receivable in the Statements of Assets and Liabilities. Under certain circumstances, EU reclaims may be subject to closing agreements with the Internal Revenue Service (IRS), which may materially reduce the reclaim amounts realized by the Funds. Fees and expenses associated with closing agreements will be reflected in the Statements of Operations when it is determined that a closing agreement with the IRS is required.

f.  Dividends and Distributions to Shareholders.  Dividends and distributions are recorded on the ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as deferred Trustees’ fees, distributions in excess of income and/or

 

61  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

capital gain, forward foreign currency contract mark-to-market, distribution re-designations, foreign currency gains and losses, non-deductible expenses, net operating losses, passive foreign investment company adjustments, return of capital distributions received and deferral of EU reclaims. 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, forward foreign currency contract mark-to-market, return of capital distributions received, net operating losses, deferral of EU reclaims, deferred Trustees’ fees and passive foreign investment company adjustments. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the year ended December 31, 2021 was as follows:

 

     

2021 Distributions

  

Fund

   

Ordinary
Income

     

Long-Term
Capital
Gains

     

Total

  

International Growth Fund

    $ 410,212      $ —      $ 410,212  

Natixis Oakmark Fund

      1,954,068        22,797,197        24,751,265  

Natixis Oakmark International Fund

      8,301,657        —        8,301,657  

U.S. Equity Opportunities Fund

      7,131,636        105,015,654        112,147,290  

Mid Cap Fund

      11,228,135        41,214,262        52,442,397  

Small Cap Value Fund

      20,173,469        6,185,028        26,358,497  

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 in per-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, 2021, capital loss carryforwards and late-year ordinary and post-October capital loss deferrals were as follows:

 

     

International
Growth Fund

     

Natixis

Oakmark

Fund

     

Natixis

Oakmark
International

Fund

     

U.S. Equity
Opportunities
Fund

     

Mid Cap
Fund

     

Small Cap
Value Fund

  

Capital loss carryforward:

                  

Long-term:

                  

No expiration date

    $ —      $   —      $ (88,513,660 )     $   —      $ —      $   —  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Late-year ordinary and post-October capital loss deferrals*

    $ (462,102 )     $ —      $ (37,409 )     $ —      $ (747,693 )     $ —  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

*

Under current tax law, capital losses, foreign currency losses, and losses on passive foreign investment companies and contingent payment debt instruments after October 31 or December 31, as applicable, may be deferred and treated as occurring on the first day of the following taxable year. Loomis Sayles International Growth Fund, Natixis Oakmark International Fund and Mid Cap Fund are deferring capital and foreign currency losses.

As of June 30, 2022, the tax cost of investments (including derivatives, if applicable) and unrealized appreciation (depreciation) on a federal tax basis were as follows:

 

    

International
Growth Fund

    

Natixis
Oakmark
Fund

    

Natixis
Oakmark
International
Fund

    

U.S. Equity
Opportunities
Fund

    

Mid Cap
Fund

    

Small Cap
Value Fund

  

Federal tax cost

   $ 27,689,948     $ 418,243,759     $ 459,680,675     $ 711,279,436     $ 287,632,295     $ 129,663,463  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross tax appreciation

   $ 363,254     $ 26,922,218     $ 18,961,094     $ 168,485,511     $ 26,471,544     $ 12,296,049  

Gross tax depreciation

     (6,907,897 )      (47,157,635 )      (92,111,499 )      (84,414,083 )      (25,646,227 )      (11,013,235 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net tax appreciation (depreciation)

   $ (6,544,643 )    $ (20,235,417 )    $ (73,150,405 )    $ 84,071,428     $ 825,317     $ 1,282,814  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

|  62

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

Amounts in the table above exclude certain adjustments that will be made at the end of the Fund’s fiscal year for tax purposes. Adjustments may include, but are not limited to, wash sales and derivatives 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 securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of June 30, 2022, 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.  Securities Lending.  Certain Funds have entered into an agreement with State Street Bank and Trust Company (“State Street Bank”), as agent of the Funds, to lend securities to certain designated borrowers. The loans are collateralized with cash or securities in an amount equal to at least 105% or 102% of the market value (including accrued interest) of the loaned international or domestic securities, respectively, when the loan is initiated. Thereafter, the value of the collateral must remain at least 102% of the market value (including accrued interest) of loaned securities for U.S. equities and U.S. corporate debt; at least 105% of the market value (including accrued interest) of loaned securities for non-U.S. equities; and at least 100% of the market value (including accrued interest) of loaned securities for U.S. Government securities, sovereign debt issued by non-U.S. Governments and non-U.S. corporate debt. In the event that the market value of the collateral falls below the required percentages described above, the borrower will deliver additional collateral on the next business day. As with other extensions of credit, the Funds may bear the risk of loss with respect to the investment of the collateral. The Funds invest cash collateral in short-term investments, a portion of the income from which is remitted to the borrowers and the remainder allocated between the Funds and State Street Bank as lending agent.

For the six months ended June 30, 2022, none of the Funds had loaned securities under this agreement.

i.  Indemnifications.  Under the Trusts’ organizational documents, their 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.

 

63  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

The following is a summary of the inputs used to value the Funds’ investments as of June 30, 2022, at value:

International Growth Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks

            

Australia

    $ —      $ 953,283      $   —      $ 953,283  

Belgium

      —        476,644        —        476,644  

China

      3,537,806        2,594,231        —        6,132,037  

Denmark

      —        1,009,211        —        1,009,211  

France

      —        989,306        —        989,306  

Germany

      —        556,747        —        556,747  

Japan

      —        1,034,312        —        1,034,312  

Macau

      —        245,613        —        245,613  

Netherlands

      —        818,256        —        818,256  

Switzerland

      462,764        1,189,471        —        1,652,235  

United Kingdom

      —        2,085,098        —        2,085,098  

United States

      758,874        1,987,505        —        2,746,379  

All Other Common Stocks(a)

      1,950,556        —        —        1,950,556  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      6,710,000        13,939,677        —        20,649,677  
  

 

 

     

 

 

     

 

 

     

 

 

  

Short-Term Investments

      —        495,628        —        495,628  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 6,710,000      $ 14,435,305      $ —      $ 21,145,305  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

Natixis Oakmark Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks(a)

    $ 389,234,193      $ —      $   —      $ 389,234,193  

Short-Term Investments

      —        8,774,149        —        8,774,149  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 389,234,193      $ 8,774,149      $ —      $ 398,008,342  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

 

|  64

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

Natixis Oakmark International Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks

            

Australia

    $ —      $ 6,140,816      $   —      $ 6,140,816  

Belgium

      —        6,871,507        —        6,871,507  

China

      4,591,887        26,210,867        —        30,802,754  

Finland

      —        2,456,130        —        2,456,130  

France

      —        53,328,848        —        53,328,848  

Germany

      —        98,503,319        —        98,503,319  

Hong Kong

      —        6,269,373        —        6,269,373  

India

      —        3,630,249        —        3,630,249  

Italy

      —        12,131,925        —        12,131,925  

Japan

      —        5,621,335        —        5,621,335  

Korea

      —        5,026,892        —        5,026,892  

Netherlands

      —        12,655,081        —        12,655,081  

Spain

      —        4,940,363        —        4,940,363  

Sweden

      —        17,610,664        —        17,610,664  

Switzerland

      —        38,378,956        —        38,378,956  

United Kingdom

      5,231,599        44,159,884        —        49,391,483  

All Other Common Stocks(a)

      17,984,867        —        —        17,984,867  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      27,808,353        343,936,209        —        371,744,562  
  

 

 

     

 

 

     

 

 

     

 

 

  

Preferred Stocks(a)

      —        5,100,795        —        5,100,795  

Short-Term Investments

      —        9,684,913        —        9,684,913  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 27,808,353      $ 358,721,917      $ —      $ 386,530,270  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

U.S. Equity Opportunities Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks(a)

    $ 768,650,051      $ —      $   —      $ 768,650,051  

Short-Term Investments

      —        26,700,813        —        26,700,813  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 768,650,051      $ 26,700,813      $ —      $ 795,350,864  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

Mid Cap Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks(a)

    $ 265,687,465      $ —      $   —      $ 265,687,465  

Short-Term Investments

      —        22,770,147        —        22,770,147  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 265,687,465      $ 22,770,147      $ —      $ 288,457,612  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

 

65  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

Small Cap Value Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks(a)

    $ 122,285,606      $ —      $ —      $ 122,285,606  

Short-Term Investments

      —        8,660,671        —        8,660,671  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 122,285,606      $ 8,660,671      $   —      $ 130,946,277  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

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 Natixis Oakmark International Fund used during the period include forward foreign currency contracts.

Natixis Oakmark International Fund is subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. The Fund may enter into forward foreign currency contracts for hedging purposes to protect the value of the Fund’s holdings of foreign securities. During the six months ended June 30, 2022, Natixis Oakmark International Fund engaged in forward foreign currency transactions for hedging purposes.

Transactions in derivative instruments for Natixis Oakmark International Fund during the six months ended June 30, 2022, as reflected within the Statements of Operations were as follows:

 

Net Realized Gain (Loss) on:

   

Forward foreign
currency

contracts

  

Foreign exchange contracts

    $ 473,946  

Net Change in Unrealized

Appreciation (Depreciation) on:

   

Forward foreign
currency

contracts

  

Foreign exchange contracts

    $ 94,327  

As the Fund values its derivatives at fair value and recognizes changes in fair value through the Statement of Operations, it does not qualify for hedge accounting under authoritative guidance for derivative instruments. The Fund’s investments in derivatives may represent an economic hedge; however, they are considered to be non-hedge transactions for the purpose of these disclosures.

The volume of forward foreign currency contract activity, as a percentage of net assets, for Natixis Oakmark International Fund, based on gross month-end notional amounts outstanding during the period, including long and short positions at absolute value, was as follows for the six months ended June 30, 2022:

 

Natixis Oakmark International Fund

   

Forwards

  

Average Notional Amount Outstanding

      1.49 % 

Highest Notional Amount Outstanding

      2.03 % 

Lowest Notional Amount Outstanding

      0.00 % 

Notional Amount Outstanding as of June 30, 2022

      0.00 % 

Notional amounts outstanding at the end of the prior period are included in the average notional amount outstanding.

5.  Purchases and Sales of Securities.  For the six months ended June 30, 2022, purchases and sales of securities (excluding short-term investments) were as follows:

 

Fund

   

Purchases

     

Sales

  

International Growth Fund

    $ 4,783,125      $ 1,523,329  

Natixis Oakmark Fund

      257,872,080        114,315,527  

Natixis Oakmark International Fund

      88,099,159        133,135,132  

U.S. Equity Opportunities Fund

      205,950,314        210,073,390  

Mid Cap Fund

      72,060,273        115,210,106  

Small Cap Value Fund

      41,200,382        47,294,217  

 

|  66

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

6.  Management Fees and Other Transactions with Affiliates.

a.  Management Fees.  Loomis, Sayles & Company, L.P. (“Loomis Sayles”) serves as investment adviser to International Growth Fund. Loomis Sayles is a limited partnership whose sole general partner, Loomis, Sayles & Company, Inc., is indirectly owned by Natixis Investment Managers, LLC, which is part of Natixis Investment Managers, an international asset management group based in Paris, France.

Under the terms of the management agreement, International Growth Fund pays a management fee at the annual rate of 0.75%, calculated daily and payable monthly, based on the Fund’s average daily net assets.

Natixis Advisors, LLC (“Natixis Advisors”) serves as investment adviser to Natixis Oakmark Fund, Natixis Oakmark International Fund, U.S. Equity Opportunities Fund, Mid Cap Fund and Small Cap Value Fund. Under the terms of the management agreements, each Fund pays a management fee at the following annual rates, calculated daily and payable monthly, based on each Fund’s average daily net assets:

 

      Percentage of Average Daily Net Assets  

Fund

    First
$150 million		      Next
$50 million		      Next
$300 million		      Next
$500 million		      Next
$500 million		      Over
$1.5 billion		  

Natixis Oakmark Fund

      0.70 %       0.70 %       0.65 %       0.60 %       0.60 %       0.60 % 

Natixis Oakmark International Fund

      0.85 %       0.75 %       0.75 %       0.75 %       0.70 %       0.70 % 

U.S. Equity Opportunities Fund

      0.75 %       0.75 %       0.75 %       0.75 %       0.75 %       0.75 % 

Mid Cap Fund

      0.75 %       0.75 %       0.75 %       0.75 %       0.75 %       0.70 % 

Small Cap Value Fund

      0.85 %       0.85 %       0.85 %       0.85 %       0.85 %       0.85 % 

Effective July 1, 2022, U.S. Equity Opportunities Fund pays a management fee at the annual rate of 0.70% of the Fund’s average daily net assets, calculated daily and payable monthly.

Natixis Advisors has entered into subadvisory agreements for each Fund as listed below.

 

Natixis Oakmark Fund

    Harris Associates L.P. (“Harris”)

Natixis Oakmark International Fund

    Harris

U.S. Equity Opportunities Fund

   

Harris

Loomis Sayles

Mid Cap Fund

    Vaughan Nelson Investment Management, L.P. (“Vaughan Nelson”)

Small Cap Value Fund

    Vaughan Nelson

Natixis Advisors, Harris and Vaughan Nelson are subsidiaries of Natixis Investment Managers, LLC.

Under the terms of the subadvisory agreements, each Fund has agreed to pay its respective subadviser a subadvisory 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

   

Subadviser

   

First

$150 million

    

Next

$50 million

    

Next

$800 million

    

Next

$500 million

    

Over

$1.5 billion

  

Natixis Oakmark Fund

    Harris      0.52 %      0.52 %      0.50 %      0.50 %      0.50 % 

Natixis Oakmark International Fund

    Harris      0.60 %      0.50 %      0.50 %      0.45 %      0.45 % 

U.S. Equity Opportunities Fund

              

Large Cap Value Segment

    Harris      0.52 %      0.52 %      0.52 %      0.52 %      0.52 % 

All Cap Growth Segment

    Loomis Sayles      0.35 %      0.35 %      0.35 %      0.35 %      0.35 % 

Mid Cap Fund

    Vaughan Nelson      0.47 %      0.47 %      0.47 %      0.47 %      0.44 % 

Small Cap Value Fund

    Vaughan Nelson      0.52 %      0.52 %      0.52 %      0.52 %      0.52 % 

Payments to Natixis Advisors are reduced by the amounts of payments to the subadvisers, as calculated based on the table above.

Loomis Sayles and Natixis Advisors have given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, substitute dividend expenses on securities sold short, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until April 30, 2023, 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.

 

67  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

For the six months ended June 30, 2022, the expense limits as a percentage of average daily net assets under the expense limitation agreements were as follows:

 

      Expense Limit as a Percentage of Average
Daily Net Assets		  

Fund

   

Class A

    

Class C

    

Class N

    

Class Y

  

International Growth Fund

      1.20 %      1.95 %      0.90 %      0.95 % 

Natixis Oakmark Fund

      1.05 %      1.80 %      0.75 %      0.80 % 

Natixis Oakmark International Fund

      1.15 %      1.90 %      0.85 %      0.90 % 

U.S. Equity Opportunities Fund

      1.20 %      1.95 %      0.90 %      0.95 % 

Mid Cap Fund

      1.15 %      1.90 %      0.85 %      0.90 % 

Small Cap Value Fund

      1.25 %      2.00 %      0.95 %      1.00 % 

Effective July 1, 2022, the expense limits as a percentage of average daily net assets under the expense limitation agreements for U.S. Equity Opportunities Fund are as follows:

 

      Expense Limit as a Percentage of Average
Daily Net Assets		  

Fund

   

Class A

    

Class C

    

Class N

    

Class Y

  

U.S. Equity Opportunities Fund

      1.15 %      1.90 %      0.85 %      0.90 % 

This new undertaking is in effect until April 30, 2024, may be terminated before then only with the consent of the Funds’ Board of Trustees, and will be reevaluated on an annual basis.

Loomis Sayles and Natixis Advisors shall be permitted to recover expenses borne under the expense limitation agreements (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 both (1) a class’ expense limitation ratio in place at the time such amounts were waived/reimbursed and (2) a class’ current applicable expense limitation ratio, 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, 2022, the management fees and waiver of management fees for each Fund were as follows:

 

Fund

    Gross
Management Fees		      Contractual
Waivers of
Management Fees1		      Net
Management Fees		      Percentage
of Average
Daily Net Assets		  
   Gross      Net  

International Growth Fund

    $ 82,245      $ 71,730      $ 10,515        0.75 %       0.10 % 

Natixis Oakmark Fund

      1,558,312        78,556        1,479,756        0.67 %       0.64 % 

Natixis Oakmark International Fund

      1,816,250        498,099        1,318,151        0.78 %       0.57 % 

U.S. Equity Opportunities Fund

      3,569,168        —        3,569,168        0.75 %       0.75 % 

Mid Cap Fund

      1,214,547        49,737        1,164,810        0.75 %       0.72 % 

Small Cap Value Fund

      612,499        64,521        547,978        0.85 %       0.76 % 

 

1 

Management fee waivers are subject to possible recovery until December 31, 2023.

No expenses were recovered for any of the Funds during the six months ended June 30, 2022 under the terms of the expense limitation agreements.

b.  Service and Distribution Fees.  Natixis Distribution, LLC (“Natixis Distribution”), which is a wholly-owned subsidiary of Natixis Investment Managers, LLC, has entered into a distribution agreement with the Trusts. Pursuant to this agreement, Natixis Distribution serves as principal underwriter of the Funds of the Trusts.

Pursuant to Rule 12b-1 under the 1940 Act, the Trusts have adopted a Service Plan relating to each Fund’s Class A shares (the “Class A Plans”) and a Distribution and Service Plan relating to each Fund’s Class C shares (the “Class C Plans”).

Under the Class A Plans, each 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.

 

|  68

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

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, 2022, the service and distribution fees for each Fund were as follows:

 

      Service Fees      Distribution Fees  

Fund

   

Class A

     

Class C

     

Class C

  

International Growth Fund

    $ 137      $ 22      $ 65  

Natixis Oakmark Fund

      266,237        73,323        219,969  

Natixis Oakmark International Fund

      174,366        71,997        215,993  

U.S. Equity Opportunities Fund

      802,552        59,867        179,601  

Mid Cap Fund

      44,509        12,246        36,739  

Small Cap Value Fund

      93,934        1,135        3,403  

c.  Administrative Fees.  Natixis Advisors provides certain administrative services for the Funds and contracts with State Street Bank to serve as sub-administrator. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts, Natixis ETF Trusts and Natixis Advisors, 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 Trusts, 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 Trusts of $10 million, which is reevaluated on an annual basis.

For the six months ended June 30, 2022, the administrative fees for each Fund were as follows:

 

Fund

   

Administrative
Fees

  

International Growth Fund

    $ 4,852  

Natixis Oakmark Fund

      102,769  

Natixis Oakmark International Fund

      102,604  

U.S. Equity Opportunities Fund

      210,352  

Mid Cap Fund

      71,615  

Small Cap Value Fund

      31,883  

d.  Sub-Transfer Agent Fees.  Natixis Distribution has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Funds and has agreed to compensate the intermediaries for providing those services. Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. These services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly at the Funds’ transfer agent. Accordingly, the Funds have agreed to reimburse Natixis Distribution for all or a portion of the servicing fees paid to these intermediaries. The reimbursement amounts (sub-transfer agent fees) paid to Natixis Distribution are subject to a current per-account equivalent fee limit approved by the Funds’ Board of Trustees, which is based on fees for similar services paid to the Funds’ transfer agent and other service providers. Class N shares do not bear such expenses.

For the six months ended June 30, 2022, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:

 

Fund

   

Sub-Transfer
Agent Fees

  

International Growth Fund

    $ 62  

Natixis Oakmark Fund

      127,274  

Natixis Oakmark International Fund

      382,206  

U.S. Equity Opportunities Fund

      137,154  

Mid Cap Fund

      98,362  

Small Cap Value Fund

      42,392  

 

69  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

As of June 30, 2022, the Funds owe Natixis Distribution the following reimbursements for sub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as payable to distributor):

 

Fund

   

Reimbursements
of Sub-Transfer
Agent Fees

  

International Growth Fund

    $ 10  

Natixis Oakmark Fund

      2,177  

Natixis Oakmark International Fund

      6,220  

U.S. Equity Opportunities Fund

      2,622  

Mid Cap Fund

      1,854  

Small Cap Value Fund

      761  

Sub-transfer agent fees attributable to Class A, Class C and Class Y are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes.

e.  Commissions.  Commissions (including CDSCs) on Fund shares retained by Natixis Distribution during the six months ended June 30, 2022 was as follows:

 

Fund

   

Commissions

  

Natixis Oakmark Fund

    $ 44,887  

Natixis Oakmark International Fund

      11,221  

U.S. Equity Opportunities Fund

      12,366  

Mid Cap Fund

      492  

Small Cap Value Fund

      641  

f.  Trustees Fees and Expenses.  The Trusts do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distribution, Natixis Investment Managers, LLC or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $369,000. 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 $210,000. 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, the chairperson of the Audit Committee and the chairperson of the Governance Committee each receive an additional retainer fee at the annual rate of $20,000. 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 Trusts 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 Trusts as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts, 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.

For the six months ended June 30, 2022, net depreciation in the value of participants’ deferral accounts are reflected on the Statements of Operations as a reduction to expenses, as follows:

 

Fund

   

Amount

  

Natixis Oakmark Fund

    $ (93,831 ) 

Natixis Oakmark International Fund

      (15,238 ) 

U.S. Equity Opportunities Fund

      (71,292 ) 

Mid Cap Fund

      (25,832 ) 

Small Cap Value Fund

      (31,160 ) 

 

|  70

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

Certain officers and employees of Natixis Advisors, Loomis Sayles and affiliates are also officers and/or Trustees of the Trusts.

g.  Affiliated Ownership.  As of June 30, 2022, Natixis and affiliates held shares of International Growth Fund representing 98% of the Fund’s net assets.

Investment activities of affiliated shareholders could have material impacts on the Fund.

h.  Reimbursement of Transfer Agent Fees and Expenses.  Natixis Advisors has given a binding contractual undertaking to the Funds to reimburse any and all transfer agency expenses for the Funds’ Class N shares. This undertaking is in effect through April 30, 2023 and is not subject to recovery under the expense limitation agreement described above.

For the six months ended June 30, 2022, Natixis Advisors reimbursed the Funds for transfer agency expenses as follows:

 

     

Reimbursement of
Transfer Agency
Expenses

  

Fund

   

Class N

  

International Growth Fund

    $ 913  

Natixis Oakmark Fund

      899  

Natixis Oakmark International Fund

      901  

U.S. Equity Opportunities Fund

      883  

Mid Cap Fund

      951  

Small Cap Value Fund

      900  

7.  Class-Specific Transfer Agent Fees and Expenses.  Transfer agent fees and expenses attributable to Class A, Class C and Class Y are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes. Transfer agent fees and expenses attributable to Class N are allocated to Class N.

For the six months ended June 30, 2022, the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):

 

     

Transfer Agent Fees and Expenses

  

Fund

   

Class A

     

Class C

     

Class N

     

Class Y

  

International Growth Fund

    $ 159      $ 26      $ 913      $ 2,765  

Natixis Oakmark Fund

      89,050        24,574        899        81,923  

Natixis Oakmark International Fund

      120,918        50,278        901        230,258  

U.S. Equity Opportunities Fund

      189,922        14,130        883        77,664  

Mid Cap Fund

      16,071        4,421        951        88,891  

Small Cap Value Fund

      38,321        461        900        34,037  

8.  Class Action Settlements.  During the six months ended June 30, 2022, Mid Cap Fund received a payment of $238,726 as part of a class action settlement related to a security previously held in the Fund’s portfolio of investments. The payment has been included in “Class Action Settlements” on the Statements of Operations.

9.   Line of Credit.  Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts, entered into a $500,000,000 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 $500,000,000 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 certain legal fees in connection with the line of credit agreement, which are being amortized over a period of 364 days and are reflected in legal fees 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, 2022, none of the Funds had borrowings under this agreement.

10.   Risk.  The Funds’ investments in foreign securities may be subject to greater political, economic, environmental, credit/counterparty and information risks. The Fund’s investments in foreign securities also are subject to foreign currency fluctuations and other foreign currency-related risks. Foreign securities may be subject to higher volatility than U.S. securities, varying degrees of regulation and limited liquidity.

 

71  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

The International Growth Fund may invest to a significant extent in variable interest entity (“VIE”) structures. VIE structures can vary, but generally consist of a U.S.-listed company with contractual arrangements, through one or more wholly-owned special purpose vehicles, with a Chinese company that ultimately provides the U.S.-listed company with contractual rights to obtain economic benefits from the Chinese company. The VIE structure enables foreign investors, such as the Fund, to obtain investment exposure similar to that of an equity owner in a Chinese company in situations in which the Chinese government has restricted or prohibited the ownership of such company by foreign investors. The Fund’s exposure to VIE structures may pose additional risks because the VIE structure is not formally recognized under Chinese law. The Chinese government may cease to tolerate VIE structures at any time or impose new restrictions. In addition, Chinese companies using the VIE structure, and listed on stock exchanges in the U.S., could also face delisting or other ramifications for failure to meet the expectations and/or requirements of the U.S. Securities and Exchange Commission, the Public Company Accounting Oversight Board, or other U.S. regulators. Any of these risks could reduce the liquidity and value of these investments or render them valueless.

International Growth Fund is non-diversified, which means that it is not limited under the 1940 Act to a percentage of assets that it may invest in any one issuer. Because the Fund may invest in the securities of a limited number of issuers, an investment in the Fund may involve a higher degree of risk than would be present in a diversified portfolio.

Global markets have experienced periods of high volatility triggered by the Covid-19 pandemic. The impact of this pandemic and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy and the financial performance of individual issuers, sectors, industries, asset classes, and markets in significant and unforeseen ways. Such effects could impair the Funds’ ability to maintain operational standards, disrupt the operations of the Funds’ service providers, adversely affect the value and liquidity of the Funds’ investments and negatively impact the Funds’ performance.

Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions in the region and around the world are impossible to predict, but could be significant and have a severe adverse effect on the region and around the world, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors.

11.  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, 2022, 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%
Account Holders

     

Percentage of
Ownership

  

Fund

              

Natixis Oakmark Fund

      1        5.85 % 

Natixis Oakmark International Fund

      1        26.48 % 

U.S. Equity Opportunities Fund

      1        6.83 % 

Mid Cap Fund

      1        24.65 % 

Small Cap Value Fund

      1        7.43 % 

Omnibus shareholder accounts for which Natixis Advisors understands that the intermediary has discretion over the underlying shareholder accounts or investment models where a shareholder account may be invested for a non-discretionary customer are included in the table above. For other omnibus accounts, the Funds do not have information on the individual shareholder accounts underlying the omnibus accounts; therefore, there could be other 5% shareholders in addition to those disclosed in the table above.

12.  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, 2022

     

Year Ended

December 31, 2021

  

International Growth Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      3,439      $ 27,999        11,486      $ 119,493  

Issued in connection with the reinvestment of distributions

      —        —        178        1,712  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      3,439      $ 27,999        11,664      $ 121,205  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

|  72

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

12.  Capital Shares (continued).

 

    

Six Months Ended

June 30, 2022

     

Year Ended

December 31, 2021

  

International Growth Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class C

 

Issued from the sale of shares

      —      $ —        5,141      $ 52,756  

Issued in connection with the reinvestment of distributions

      —        —        56        540  

Redeemed

      (3,928 )       (33,853 )       (1,268 )       (12,908 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (3,928 )     $ (33,853 )       3,929      $ 40,388  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      —      $ —        940,733      $ 10,000,000  

Issued in connection with the reinvestment of distributions

      —        —        517        5,372  

Redeemed

      —        —        (46,992 )       (500,000 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      —      $ —        894,258      $ 9,505,372  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      369,884      $ 3,151,576        24,598      $ 256,782  

Issued in connection with the reinvestment of distributions

      —        —        388        3,739  

Redeemed

      (2,737 )       (19,622 )       (2,953 )       (29,891 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      367,147      $ 3,131,954        22,033      $ 230,630  
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase from capital share transactions

      366,658      $ 3,126,100        931,884      $ 9,897,595  
  

 

 

     

 

 

     

 

 

     

 

 

  
    

Six Months Ended

June 30, 2022

     

Year Ended

December 31, 2021

  

Natixis Oakmark Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      671,204      $ 18,451,114        691,558      $ 20,206,685  

Issued in connection with the reinvestment of distributions

      93,063        2,562,005        463,894        13,477,187  

Redeemed

      (354,549 )       (9,529,571 )       (855,457 )       (24,491,426 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      409,718      $ 11,483,548        299,995      $ 9,192,446  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class C

 

Issued from the sale of shares

      837,911      $ 19,505,341        546,929      $ 13,338,620  

Issued in connection with the reinvestment of distributions

      41,394        917,292        147,029        3,458,822  

Redeemed

      (271,279 )       (5,846,640 )       (439,521 )       (10,138,945 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      608,026      $ 14,575,993        254,437      $ 6,658,497  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      —      $ —        20,230      $ 668,794  

Issued in connection with the reinvestment of distributions

      266        7,860        1,354        42,243  

Redeemed

      (2,888 )       (81,793 )       (14,413 )       (395,951 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (2,622 )     $ (73,933 )       7,171      $ 315,086  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      5,521,761      $ 169,041,222        2,239,599      $ 69,629,845  

Issued in connection with the reinvestment of distributions

      82,881        2,442,504        194,941        6,059,178  

Redeemed

      (1,641,417 )       (46,515,973 )       (767,848 )       (22,108,885 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      3,963,225      $ 124,967,753        1,666,692      $ 53,580,138  
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase from capital share transactions

      4,978,347      $ 150,953,361        2,228,295      $ 69,746,167  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

73  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

12.  Capital Shares (continued).

 

    

Six Months Ended

June 30, 2022

     

Year Ended

December 31, 2021

  

Natixis Oakmark International Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      956,520      $ 13,457,109        2,335,450      $ 36,472,444  

Issued in connection with the reinvestment of distributions

      —        —        105,442        1,593,676  

Redeemed

      (1,135,057 )       (15,555,728 )       (1,647,832 )       (25,699,049 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (178,537 )     $ (2,098,619 )       793,060      $ 12,367,071  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class C

 

Issued from the sale of shares

      63,166      $ 876,433        335,969      $ 5,138,230  

Issued in connection with the reinvestment of distributions

      —        —        25,276        376,368  

Redeemed

      (890,781 )       (12,139,584 )       (2,680,195 )       (40,587,344 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (827,615 )     $ (11,263,151 )       (2,318,950 )     $ (35,072,746 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      130,830      $ 1,841,030        27,769      $ 415,638  

Issued in connection with the reinvestment of distributions

      —        —        837        12,581  

Redeemed

      (18,374 )       (235,062 )       (2,541 )       (37,341 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      112,456      $ 1,605,968        26,065      $ 390,878  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      6,307,757      $ 88,072,235        5,468,533      $ 86,311,348  

Issued in connection with the reinvestment of distributions

      —        —        353,698        5,316,490  

Redeemed

      (8,863,932 )       (123,662,679 )       (4,621,536 )       (71,233,588 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (2,556,175 )     $ (35,590,444 )       1,200,695      $ 20,394,250  
  

 

 

     

 

 

     

 

 

     

 

 

  

Decrease from capital share transactions

      (3,449,871 )     $ (47,346,246 )       (299,130 )     $ (1,920,547 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
    

Six Months Ended

June 30, 2022

     

Year Ended

December 31, 2021

  

U.S. Equity Opportunities Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      251,285      $ 9,733,203        706,028      $ 30,893,730  

Issued in connection with the reinvestment of distributions

      609,502        23,904,684        1,609,947        68,881,940  

Redeemed

      (893,744 )       (33,480,035 )       (1,953,593 )       (84,776,070 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (32,957 )     $ 157,852        362,382      $ 14,999,600  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class C

 

Issued from the sale of shares

      101,681      $ 1,965,407        226,043      $ 5,356,200  

Issued in connection with the reinvestment of distributions

      189,235        3,599,203        475,273        10,545,794  

Redeemed

      (530,488 )       (9,715,198 )       (949,764 )       (22,561,088 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (239,572 )     $ (4,150,588 )       (248,448 )     $ (6,659,094 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      721      $ 30,208        —      $ —  

Issued in connection with the reinvestment of distributions

      104        5,180        293        15,616  

Redeemed

      —        —        (620 )       (35,725 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      825      $ 35,388        (327 )     $ (20,109 ) 
  

 

 

     

 

 

     

 

 

     
Class Y

 

Issued from the sale of shares

      1,233,638      $ 56,817,956        1,490,330      $ 81,108,161  

Issued in connection with the reinvestment of distributions

      152,703        7,564,885        370,262        19,743,173  

Redeemed

      (840,966 )       (39,467,898 )       (1,682,880 )       (89,109,967 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      545,375      $ 24,914,943        177,712      $ 11,741,367  
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase from capital share transactions

      273,671      $ 20,957,595        291,319      $ 20,061,764  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

|  74

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

12.  Capital Shares (continued).

 

    

Six Months Ended

June 30, 2022

     

Year Ended

December 31, 2021

  

Mid Cap Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      128,744      $ 2,722,984        261,646      $ 6,416,364  

Issued in connection with the reinvestment of distributions

      37,332        792,941        216,292        4,872,528  

Redeemed

      (108,725 )       (2,260,989 )       (213,572 )       (5,159,634 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      57,351      $ 1,254,936        264,366      $ 6,129,258  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class C

 

Issued from the sale of shares

      9,726      $ 180,754        16,158      $ 374,819  

Issued in connection with the reinvestment of distributions

      13,437        257,591        85,496        1,752,803  

Redeemed

      (85,464 )       (1,623,439 )       (241,770 )       (5,500,556 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (62,301 )     $ (1,185,094 )       (140,116 )     $ (3,372,934 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      126,558      $ 2,691,632        2,826,157      $ 72,192,384  

Issued in connection with the reinvestment of distributions

      89,965        1,942,339        531,924        12,118,098  

Redeemed

      (388,449 )       (8,384,460 )       (205,461 )       (5,123,004 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (171,926 )     $ (3,750,489 )       3,152,620      $ 79,187,478  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      648,814      $ 13,964,887        1,675,522      $ 41,044,197  

Issued in connection with the reinvestment of distributions

      206,663        4,470,118        1,387,574        31,819,928  

Redeemed

      (1,683,374 )       (36,465,862 )       (3,531,602 )       (86,803,876 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (827,897 )     $ (18,030,857 )       (468,506 )     $ (13,939,751 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase (decrease) from capital share transactions

      (1,004,773 )     $ (21,711,504 )       2,808,364      $ 68,004,051  
  

 

 

     

 

 

     

 

 

     

 

 

  
    

Six Months Ended

June 30, 2022

     

Year Ended

December 31, 2021

  

Small Cap Value Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      190,513      $ 3,276,875        642,790      $ 12,042,869  

Issued in connection with the reinvestment of distributions

      96,328        1,617,322        782,913        13,763,408  

Redeemed

      (307,524 )       (5,223,825 )       (555,154 )       (10,594,338 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (20,683 )     $ (329,628 )       870,549      $ 15,211,939  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class C

 

Issued from the sale of shares

      21,522      $ 137,660        6,936      $ 66,135  

Issued in connection with the reinvestment of distributions

      8,400        52,754        49,731        339,165  

Redeemed

      (21,571 )       (136,763 )       (35,173 )       (333,625 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      8,351      $ 53,651        21,494      $ 71,675  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      314      $ 5,482        59,076      $ 1,134,239  

Issued in connection with the reinvestment of distributions

      1,519        27,118        12,510        233,321  

Redeemed

      (152 )       (2,674 )       (1 )       (27 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      1,681      $ 29,926        71,585      $ 1,367,533  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      1,153,819      $ 20,328,302        793,405      $ 16,230,504  

Issued in connection with the reinvestment of distributions

      79,249        1,413,017        591,535        11,020,292  

Redeemed

      (1,008,901 )       (17,564,997 )       (714,903 )       (14,531,447 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      224,167      $ 4,176,322        670,037      $ 12,719,349  
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase from capital share transactions

      213,516      $ 3,930,271        1,633,665      $ 29,370,496  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

75  |

LOGO

 

LOGO

 

Semiannual Report

June 30, 2022

Gateway Fund

Gateway Equity Call Premium Fund

Mirova Global Green Bond Fund

Mirova Global Sustainable Equity Fund

Mirova International Sustainable Equity Fund

Mirova U.S. Sustainable Equity Fund

 

Table of Contents

Portfolio Review     1  
Portfolio of Investments     16  
Financial Statements     33  
Notes to Financial Statements     62  

 

LOGO

GATEWAY FUND

 

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
Mitchell J. Trotta, CFA®  
Gateway Investment Advisers, LLC

 

*

Effective July 1, 2022, Mr. Stewart no longer serves as a portfolio manager of the Fund.

 

 

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.

 

 

 

Average Annual Total Returns – June 30, 20224

 

             
      6 Months      1 Year      5 Years      10 Years      Life of
Class N		      Expense Ratios5  
   Gross      Net  
     
Class Y                       
NAV      -12.46 %       -9.07 %       3.12 %       4.23 %       — %       0.70 %       0.70 % 
     
Class A                       
NAV      -12.55        -9.28        2.87        3.98        —        0.95 %       0.94 % 
With 5.75% Maximum Sales Charge      -17.57        -14.50        1.66        3.37        —          
     
Class C                       
NAV      -12.92        -10.00        2.09        3.35        —        1.70 %       1.70 % 
With CDSC1      -13.79        -10.90        2.09        3.35        —          
     
Class N (Inception 5/1/17)                       
NAV      -12.43        -9.02        3.17        —        3.31        0.64 %       0.64 % 
   
Comparative Performance                       
S&P 500® Index2      -19.96        -10.62        11.31        12.96        11.28          
Bloomberg U.S. Aggregate Bond Index3      -10.35        -10.29        0.88        1.54        1.02                    

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, and includes automatic conversion to Class A shares after eight years.

 

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 U.S. Aggregate Bond Index is a broad-based index that covers the U.S. dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, government-related, corporate, mortgage-backed securities, asset-backed securities, and collateralized mortgage-backed securities sectors.

 

4

Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

 

5

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense limitations set to expire on 4/30/23. 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.

 

1  |

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
Mitchell J. Trotta, CFA®   Class Y    GCPYX
Gateway Investment Advisers, LLC  

 

 

Investment Goal

The Fund seeks total return with less risk than U.S. equity markets.

 

 

Average Annual Total Returns – June 30, 20224

 

           
      6 Months      1 Year      5 Years      Life of Class      Expense Ratios5  
   Gross      Net  
     
Class Y (Inception 9/30/14)               Class Y/A/C        Class N          
NAV      -13.53 %       -7.30 %       5.56 %       5.89 %       — %       0.92 %       0.68 % 
     
Class A (Inception 9/30/14)                       
NAV      -13.68        -7.53        5.27        5.62        —        1.17 %       0.93 % 
With 5.75% Maximum Sales Charge      -18.66        -12.84        4.03        4.82        —          
     
Class C (Inception 9/30/14)                       
NAV      -13.99        -8.27        4.48        4.84        —        1.93 %       1.68 % 
With CDSC1      -14.85        -9.19        4.48        4.84        —          
     
Class N (Inception 5/1/17)                       
NAV      -13.58        -7.33        5.56        —        5.67        1.05 %       0.63 % 
   
Comparative Performance                       
Cboe S&P 500 BuyWrite Index (BXMSM)2      -10.19        -2.62        4.09        5.04        4.37          
S&P 500® Index3      -19.96        -10.62        11.31        10.83        11.28                    

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, and includes automatic conversion to Class A shares after eight years.

 

2

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 4/30/23. 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.

 

|  2

MIROVA GLOBAL GREEN BOND FUND

 

Managers   Symbols
Marc Briand   Class A    MGGAX
Charles Portier   Class N    MGGNX
Bertrand Rocher   Class Y    MGGYX
Mirova US LLC  

 

 

Investment Goal

The Fund seeks to provide total return, through a combination of capital appreciation and current income, by investing in green bonds.

 

 

Average Annual Total Returns – June 30, 20222

 

           
      6 Months      1 Year      5 Year      Life of Fund      Expense Ratios3  
   Gross      Net  
     
Class Y (Inception 2/28/17)                      
NAV      -14.23 %       -15.03 %       0.12 %       0.18 %       1.14 %       0.69 % 
     
Class A (Inception 2/28/17)                      
NAV      -14.31        -15.22        -0.12        -0.06        1.39 %       0.94 % 
With 4.25% Maximum Sales Charge      -17.95        -18.86        -1.00        -0.86          
     
Class N (Inception 2/28/17)                      
NAV      -14.21        -14.98        0.15        0.24        1.03 %       0.64 % 
   
Comparative Performance                    
Bloomberg MSCI Green Bond Index – USD Hedged1      -13.47        -13.62        0.58        0.73                    

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

Bloomberg MSCI Green Bond Index - USD Hedged provides a broad-based measure of global fixed-income securities issued to fund projects with direct environmental benefits according to MSCI ESG Research’s green bond criteria. The green bonds are primarily investment-grade, or may be classified by other sources when bond ratings are not available. The Index may include green bonds from the corporate, securitized, Treasury, or government-related sectors.

 

2

Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

 

3

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense limitations set to expire on 4/30/23. 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.

 

3  |

MIROVA GLOBAL SUSTAINABLE EQUITY FUND

 

Managers   Symbols
Jens Peers, CFA®   Class A    ESGMX
Hua Cheng, CFA®, PhD   Class C    ESGCX
Amber Fairbanks, CFA®   Class N    ESGNX
Mirova US LLC   Class Y    ESGYX

 

 

Investment Goal

The Fund seeks long-term capital appreciation.

 

 

 

Average Annual Total Returns – June 30, 20223

 

           
      6 Months      1 Year      5 Years      Life of Class      Expense Ratios4  
   Gross      Net  
     
Class Y (Inception 3/31/16)               Class Y/A/C        Class N          
NAV      -24.91 %       -18.96 %       10.18 %       10.81 %       — %       0.99 %       0.96 % 
     
Class A (Inception 3/31/16)                       
NAV      -25.03        -19.19        9.91        10.53        —        1.24 %       1.21 % 
With 5.75% Maximum Sales Charge      -29.33        -23.85        8.62        9.49        —          
     
Class C (Inception 3/31/16)                       
NAV      -25.28        -19.80        9.08        9.71        —        1.99 %       1.96 % 
With CDSC1      -26.00        -20.49        9.08        9.71        —          
     
Class N (Inception 5/1/17)                       
NAV      -24.90        -18.91        10.24        —        10.61        0.91 %       0.91 % 
   
Comparative Performance                       
MSCI World Index (Net)2      -20.51        -14.34        7.67        9.11        7.85                    

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com/performance. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

 

1

Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase, and includes automatic conversion to Class A shares after eight years.

 

2

MSCI World Index (Net) is an unmanaged index that is designed to measure the equity market performance of developed markets. It is composed of common stocks of companies representative of the market structure of developed market countries in North America, Europe, and the Asia/Pacific Region. The index is calculated without dividends, with net or with gross dividends reinvested, in both U.S. dollars and local currencies.

 

3

Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

 

4

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense limitations set to expire on 4/30/23. 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.

 

|  4

MIROVA INTERNATIONAL SUSTAINABLE EQUITY FUND

 

Managers   Symbols
Jens Peers, CFA®   Class A    MRVAX
Hua Cheng, CFA® PhD   Class N    MRVNX
Amber Fairbanks, CFA®   Class Y    MRVYX
Mirova US LLC

 

 

Investment Goal

The Fund seeks long-term capital appreciation.

 

 

Average Annual Total Returns – June 30, 20222

 

         
      6 Months      1 Year      Life of Fund      Expense Ratios3  
   Gross      Net  
     
Class Y (Inception 12/28/18)                 
NAV      -27.40 %       -26.27 %       5.55 %       1.83 %       0.96 % 
     
Class A (Inception 12/28/18)                 
NAV      -27.53        -26.42        5.29        2.08 %       1.21 % 
With 5.75% Maximum Sales Charge      -31.71        -30.65        3.53          
     
Class N (Inception 12/28/18)                 
NAV      -27.43        -26.24        5.59        1.44 %       0.91 % 
   
Comparative Performance                 
MSCI EAFE Index (Net)1      -19.57        -17.77        4.88                    

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

MSCI EAFE Index (Net) is a free float-adjusted market capitalization index designed to measure large and mid-cap equity performance in developed markets, excluding the U.S. and Canada. The Index includes countries in Europe, Australasia, and the Far East.

 

2

Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

 

3

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense limitations set to expire on 4/30/23. 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.

 

5  |

MIROVA U.S. SUSTAINABLE EQUITY FUND

 

Managers   Symbols
Jens Peers, CFA®   Class A    MUSAX
Hua Cheng, CFA® PhD   Class C    MUSCX
Amber Fairbanks, CFA®   Class N    MUSNX
Mirova US LLC   Class Y    MUSYX

 

 

Investment Goal

The Fund seeks long-term capital appreciation.

 

 

 

Average Annual Total Returns – June 30, 20223

 

         
      6 Months      1 Year      Life of Fund      Expense Ratios4  
   Gross      Net  
     
Class Y (Inception 12/15/20)                 
NAV      -25.94 %       -15.79 %       -1.13 %       8.79 %       0.80 % 
     
Class A (Inception 12/15/20)                 
NAV      -25.98        -15.97        -1.32        8.99 %       1.05 % 
With 5.75% Maximum Sales Charge      -30.26        -20.80        -5.04          
     
Class C (Inception 12/15/20)                 
NAV      -26.28        -16.61        -2.08        9.37 %       1.80 % 
With CDSC1      -26.99        -17.38        -2.08          
     
Class N (Inception 12/15/20)                 
NAV      -25.86        -15.76        -1.04        3.50 %       0.75 % 
   
Comparative Performance                 
S&P 500® Index2      -19.96        -10.62        3.07                    

Performance data shown represents past performance and is no guarantee of, and not necessarily indicative of, future results. Total return and value will vary, and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For most recent month-end performance, visit im.natixis.com/performance. Performance for other share classes will be greater or less than shown based on differences in fees and sales charges. You may not invest directly in an index. Performance for periods less than one year is cumulative, not annualized. Returns reflect changes in share price and reinvestment of dividends and capital gains, if any. The table(s) do not reflect taxes shareholders might owe on any fund distributions or when they redeem their shares.

 

1

Performance for Class C shares assumes a 1.00% contingent deferred sales charge (“CDSC”) applied when you sell shares within one year of purchase, and includes automatic conversion to Class A shares after eight years.

 

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 U.S. equities market.

 

3

Fund performance has been increased by fee waivers and/or expense reimbursements, if any, without which performance would have been lower.

 

4

Expense ratios are as shown in the Fund’s prospectus in effect as of the date of this report. The expense ratios for the current reporting period can be found in the Financial Highlights section of this report under Ratios to Average Net Assets. Net expenses reflect contractual expense limitations set to expire on 4/30/23. 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.

 

|  6

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 from 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 the Natixis Funds’ proxy voting policies and procedures is available without charge, upon request, by calling Natixis Funds at 800-225-5478; on the Natixis Funds’ website at im.natixis.com; and on the Securities and Exchange Commission’s (“SEC’s”) website at www.sec.gov. Information regarding how the Natixis Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available from the Natixis Funds’ website and the SEC’s website.

QUARTERLY PORTFOLIO SCHEDULES

The Natixis Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the SEC’s website at www.sec.gov. First and third quarter schedules of portfolio holdings are also available at im.natixis.com/funddocuments. A hard copy may be requested from the Fund at no charge by calling 800-225-5478.

CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.

 

7  |

UNDERSTANDING FUND EXPENSES

As a mutual fund shareholder, you incur different costs: transaction costs, including sales charges (loads) on purchases and 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 Funds’ prospectus. The following examples are intended to help you understand the ongoing costs of investing in the Funds and help you compare these with the ongoing costs of investing in other mutual funds.

The first line in the table of each class of Fund shares shows the actual account values and actual Fund expenses you would have paid on a $1,000 investment in the Fund from January 1, 2022 through June 30, 2022. 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 in the table for each class of fund shares 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 funds. If transaction costs were included, total costs would be higher.

 

GATEWAY FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $874.50        $4.32  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.18        $4.66  
Class C           
Actual      $1,000.00        $870.80        $7.89  
Hypothetical (5% return before expenses)      $1,000.00        $1,016.36        $8.50  
Class N           
Actual      $1,000.00        $875.70        $3.02  
Hypothetical (5% return before expenses)      $1,000.00        $1,021.57        $3.26  
Class Y           
Actual      $1,000.00        $875.40        $3.25  
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): 0.93%, 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).

 

|  8

GATEWAY EQUITY CALL PREMIUM FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $863.20        $4.30  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.18        $4.66  
Class C           
Actual      $1,000.00        $860.10        $7.75  
Hypothetical (5% return before expenses)      $1,000.00        $1,016.46        $8.40  
Class N           
Actual      $1,000.00        $864.20        $2.91  
Hypothetical (5% return before expenses)      $1,000.00        $1,021.67        $3.16  
Class Y           
Actual      $1,000.00        $864.70        $3.14  
Hypothetical (5% return before expenses)      $1,000.00        $1,021.42        $3.41  

 

*

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.93%, 1.68%, 0.63% and 0.68% 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).

 

MIROVA GLOBAL GREEN BOND FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $856.90        $4.24  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.23        $4.61  
Class N           
Actual      $1,000.00        $857.90        $2.90  
Hypothetical (5% return before expenses)      $1,000.00        $1,021.67        $3.16  
Class Y           
Actual      $1,000.00        $857.70        $3.09  
Hypothetical (5% return before expenses)      $1,000.00        $1,021.47        $3.36  

 

*

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 0.92%, 0.63% and 0.67% for Class A, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), divided by 365 (to reflect the half-year period).

 

9  |

MIROVA GLOBAL SUSTAINABLE EQUITY FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $749.70        $5.25  
Hypothetical (5% return before expenses)      $1,000.00        $1,018.79        $6.06  
Class C           
Actual      $1,000.00        $747.20        $8.49  
Hypothetical (5% return before expenses)      $1,000.00        $1,015.08        $9.79  
Class N           
Actual      $1,000.00        $751.00        $3.91  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.33        $4.51  
Class Y           
Actual      $1,000.00        $750.90        $4.17  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.03        $4.81  

 

*

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.21%, 1.96%, 0.90% and 0.96% 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).

 

MIROVA INTERNATIONAL SUSTAINABLE EQUITY FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $724.70        $5.17  
Hypothetical (5% return before expenses)      $1,000.00        $1,018.79        $6.06  
Class N           
Actual      $1,000.00        $725.70        $3.89  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.28        $4.56  
Class Y           
Actual      $1,000.00        $726.00        $4.11  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.03        $4.81  

 

*

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.21%, 0.91% and 0.96% for Class A, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), divided by 365 (to reflect the half-year period).

 

|  10

MIROVA U.S. SUSTAINABLE EQUITY FUND    BEGINNING
ACCOUNT VALUE
1/1/2022		      ENDING
ACCOUNT VALUE
6/30/2022		      EXPENSES PAID
DURING PERIOD*
1/1/2022 – 6/30/2022		  
Class A           
Actual      $1,000.00        $740.20        $4.53  
Hypothetical (5% return before expenses)      $1,000.00        $1,019.59        $5.26  
Class C           
Actual      $1,000.00        $737.20        $7.75  
Hypothetical (5% return before expenses)      $1,000.00        $1,015.87        $9.00  
Class N           
Actual      $1,000.00        $741.40        $3.24  
Hypothetical (5% return before expenses)      $1,000.00        $1,021.08        $3.76  
Class Y           
Actual      $1,000.00        $740.60        $3.45  
Hypothetical (5% return before expenses)      $1,000.00        $1,020.83        $4.01  

 

*

Expenses are equal to the Fund’s annualized expense ratio (after waiver/reimbursement): 1.05%, 1.80%, 0.75% and 0.80% for Class A, C, N and Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), divided by 365 (to reflect the half-year period).

 

11  |

BOARD APPROVAL OF ADVISORY AGREEMENT

The Board of Trustees of the Trusts (the “Board”), including the Independent Trustees, considers matters bearing on each Fund’s advisory agreement (collectively, the “Agreements”) at most of its meetings throughout the year. Each year, usually in the spring, the Contract Review Committee of the Board meets to review the Agreements to determine whether to recommend that the full Board approve the continuation of the Agreements, typically for an additional one-year period. This meeting typically includes all the Independent Trustees, including the Trustees who do not serve on the Contract Review Committee. 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 at its June Board meeting.

In connection with these meetings, the Trustees receive materials that the Funds’ investment advisers (the “Advisers”) believe to be reasonably necessary for the Trustees to evaluate the Agreements. These materials generally include, among other items, (i) information on the investment performance of the Funds and the performance of peer groups of funds and the Funds’ performance benchmarks, (ii) information on the Funds’ advisory fees and other expenses, including information comparing the Funds’ advisory fees to the fees charged to institutional accounts with similar strategies managed by the Advisers, if any, and to those of peer groups of funds and information about any applicable expense limitations and/or fee “breakpoints,” (iii) sales and redemption data in respect of the Funds, (iv) information about the profitability of the Agreements to the Advisers, including how profitability is determined for the Funds, and (v) information obtained through the completion by the Advisers of a questionnaire distributed on behalf of the Trustees. The Board, including the Independent Trustees, also considers other matters such as (i) each Fund’s investment objective and strategies and the size, education and experience of the Advisers’ respective investment staffs and their use of technology, external research and trading cost measurement tools, (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, allocations to brokers affiliated with the Advisers and the use of “soft” commission dollars to pay for research and other similar services, (iv) each Adviser’s policies and procedures relating to, among other things, compliance, trading and best execution, proxy voting, liquidity 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 Advisers.

In addition to the materials requested by the Trustees in connection with their annual consideration of the continuation of the Agreements, the Trustees receive materials in advance of each regular quarterly meeting of the Board that provide detailed information about the Funds’ investment performance and the fees charged to the Funds for advisory and other services. This information generally includes, where available, 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 of funds, total return information for various periods, third-party performance rankings for various periods comparing a Fund against similarly categorized funds, and performance ratings provided by a different third-party rating organization. The portfolio management team for each Fund or other representatives of the Advisers make periodic presentations to the Contract Review Committee and/or the full Board, and Funds identified as presenting possible performance concerns may be subject to more frequent Board or Committee presentations and reviews. In addition, the Trustees are periodically provided with detailed statistical information about each Fund’s portfolio. The Trustees also receive periodic updates between meetings, both at the Board and at the Committee level.

The Board most recently approved the continuation of the Agreements for a one-year period at its meeting held in June 2022. In considering whether to approve the continuation of the Agreements, the Board, including the Independent Trustees, did not identify any single factor as determinative. Individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. Matters considered by the Trustees, including the Independent Trustees, in connection with their approval of the Agreements included, but were not limited to, the factors listed below.

 

The nature, extent and quality of the services provided to the Funds under the Agreements. The Trustees considered the nature, extent and quality of the services provided by the Advisers and their affiliates to the Funds and the resources dedicated to the Funds by the Advisers and their affiliates. The Trustees also considered their experience with other funds advised by the Advisers, as well as the affiliation between the Advisers and Natixis Investment Managers, LLC, whose affiliates provide investment advisory services to other funds in the Natixis family of funds.

The Trustees considered not only the advisory services provided by the Advisers to the Funds, but also the benefits to the Funds from the monitoring and oversight services provided by Natixis Advisors, LLC (“Natixis Advisors”). They also considered the administrative and shareholder services provided by Natixis Advisors and its affiliates to the Funds. They also took into consideration increases in the services provided resulting from new regulatory requirements, such as new rules relating to the fair valuation of investments and the use of derivatives.

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.

 

|  12

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the nature, extent and quality of services provided supported the renewal of the Agreements.

Investment performance of the Funds and the Advisers. As noted above, the Trustees received information about the performance of the Funds over various time periods, including information that compared the performance of the Funds to the performance of peer groups and categories of funds and the Funds’ respective performance benchmarks. The Trustees also received information about how comparative peer groups are constructed. In addition, 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, 2021, each Fund’s one-, three- and five-year performance, as applicable, stated as percentile rankings within categories selected by the independent third-party data provider, was as follows (where the best performance would be in the first percentile of its category):

 

      One-Year      Three-Year      Five-Year  
Gateway Equity Call Premium Fund      12 %       14 %       7 % 
Gateway Fund      62 %       69 %       60 % 
Mirova Global Green Bond Fund      88 %       50 %       N/A  
Mirova Global Sustainable Equity Fund      33 %       30 %       18 % 
Mirova International Sustainable Equity Fund      87 %       11 %       N/A  
Mirova U.S. Sustainable Equity Fund      8 %       N/A        N/A  

In the case of each Fund that had performance that lagged that of a relevant category median as determined by the independent third-party for certain (although not necessarily all) periods, the Board concluded that other factors relevant to performance supported renewal of the Agreements. These factors included one or more of the following: (1) that the underperformance was attributable, to a significant extent, to investment decisions (such as security selection or sector allocation) by the Adviser that were reasonable and consistent with the Fund’s investment objective and policies; (2) that the Fund’s performance over the three-year period was strong relative to its category; (3) that the Fund’s long-term (10-year) relative performance remains strong relative to its category; and (4) that, in the case of Gateway Fund, 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 Board also considered information about the Funds’ more recent performance, including how that performance had been impacted by the Covid-19 crisis.

The Trustees also considered each Adviser’s performance and reputation generally, the performance of the fund family generally, and the historical responsiveness of the Advisers to Trustee concerns about performance and the willingness of the Advisers to take steps intended to improve performance.

 

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the performance of the Funds and the Advisers and/or other relevant factors supported the renewal of the Agreements.

The costs of the services to be provided and profits to be realized by the Advisers and their affiliates from their respective relationships with the Funds. The Trustees considered the fees charged to the Funds for advisory and administrative services as well as the total expense levels of the Funds. This information included comparisons (provided both by management and by an independent third party) of the Funds’ advisory fees and total expense levels to those of their peer groups and information about the advisory fees charged by the Advisers to comparable accounts (such as institutional separate accounts), as well as information about differences in such fees and the reasons for any such differences. In considering the fees charged to comparable accounts, the Trustees considered, among other things, management’s representations about the differences between managing mutual funds as compared to other types of accounts, including the additional resources required to effectively manage mutual fund assets, the greater regulatory costs associated with the management of such assets, and the entrepreneurial, regulatory and other risks associated with sponsoring and managing mutual funds. In evaluating each Fund’s advisory fees, the Trustees also took into account the demands, complexity and quality of the investment management of such Fund, and the need for the Advisers to offer competitive compensation and the potential need to expend additional resources to the extent the Fund grows in size. The Trustees considered that over the past several years, management had demonstrated its intention to have competitive fee levels by making recommendations regarding reductions in advisory fee rates, implementation of advisory fee breakpoints and the institution of advisory fee waivers and expense limitations for various funds in the fund family. They noted that all of the Funds included have expense limitations in place, and they considered the amounts waived or reimbursed by the Adviser for all of the Funds under their expense limitation agreements.

 

13  |

The Trustees noted that certain of the Funds had total advisory fee rates that were above the median of a peer group of funds. In this regard, the Trustees considered the factors that management believed justified such relatively higher advisory fee rates, including: (1) that the advisory fee was only six basis points higher than the median of a peer group of funds; (2) that peer grouping for the Fund was challenging given the limited number of ESG-specific funds within the category; and (3) that the advisory fee rate of the Mirova Global Green Bond Fund had been reduced effective July 1, 2021 and the comparison against the peer group did not reflect the full impact of that reduction.

The Trustees also considered the compensation directly or indirectly received by the Advisers and their affiliates from their relationships with the Funds. The Trustees reviewed information provided by management as to the profitability of the Advisers’ and their affiliates’ relationships with the Funds, and information about how expenses are determined and allocated for purposes of profitability calculations. They also reviewed information provided by management about the effect of distribution costs and changes in asset levels on Adviser profitability, including information regarding resources spent on distribution activities. When reviewing profitability, the Trustees also considered information about court cases in which adviser compensation or profitability were issues, the performance of the relevant Funds, the expense levels of the Funds, whether the Advisers had implemented breakpoints and/or expense limitations with respect to such Funds and the overall profit margin of Natixis Investment Managers, LLC compared to that of certain other investment managers for which such data was available.

After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding each of the Agreements, that the advisory fees charged to each of the Funds were fair and reasonable, and that the costs of these services generally and the related profitability of the Advisers and their affiliates in respect of their relationships with the Funds supported the renewal of the Agreements.

Economies of Scale. The Trustees considered the existence of any economies of scale in the provision of services by the Advisers and whether those economies are shared with the Funds through breakpoints in their investment advisory fees or other means, such as expense limitations. 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 limitations. With respect to economies of scale, the Trustees noted that Gateway Fund, had breakpoints in its advisory fees and that each of the Funds was subject to an expense limitation. In considering these issues, the Trustees also took note of the costs of the services provided (both on an absolute and on a relative basis) and the profitability to the Advisers and their affiliates of their relationships with the Funds, as discussed above. The Trustees also considered that the Funds have benefitted from the substantial reinvestment certain Advisers had made into their businesses.

 

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, including but not limited to the Covid-19 crisis and its significant disruptions to the economy and business operations, as well as more recent market volatility, on the performance, asset levels and expense ratios of each Fund.

 

•  

Whether each Fund has operated in accordance with its investment objective and the Fund’s record of compliance with its investment restrictions, and the compliance programs of the Funds and the Advisers. They also considered the compliance-related resources the Advisers and their affiliates were providing to the Funds.

 

•  

So-called “fallout benefits” to the Advisers, such as the engagement of affiliates of the Advisers to provide distribution and administrative services to the Funds, and the benefits of research made available to the Advisers by reason of brokerage commissions (if any) generated by the Funds’ securities transactions. The Trustees also considered the benefits to the parent company of Natixis Advisors from the retention of the 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.

 

•  

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, 2023.

 

|  14

LIQUIDITY RISK MANAGEMENT PROGRAM

Annual Report for the Period Commencing on January 1, 2021 and ending December 31, 2021 (including updates through June 30, 2022)

Effective December 1, 2018 (December 28, 2018 for Mirova International Sustainable Equity Fund and December 15, 2020 for Mirova U.S. Sustainable Equity Fund), the Funds adopted a liquidity risk management program (the “Program”) pursuant to the requirements of Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Rule”). The Rule requires registered open-end funds, including mutual funds and exchange-traded funds, to establish liquidity risk management programs in order to effectively manage fund liquidity and mitigate the risk that a fund could not meet redemption requests without significantly diluting the interests of remaining investors.

The rule requires the Funds to assess, manage and review their liquidity risk considering applicable factors during normal and foreseeable stressed conditions. In fulfilling this requirement, each Fund assesses and reviews (where applicable and amongst other matters) its investment strategy, portfolio holdings, possible investment concentrations, use of derivatives, short-term and long-term cash flow projections, use of cash and cash equivalents, as well as borrowing arrangements and other funding sources. Each Program has established a Program Administrator (“Administrator”) which is the adviser of the Fund.

In accordance with the Program, each of the Fund’s portfolio investments is classified into one of four liquidity categories based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the investment) without significantly changing its market value.

Each Fund is prohibited from acquiring an investment if, after the acquisition, its holdings of illiquid assets will exceed 15% of its net assets. If a Fund does not hold a majority of highly liquid investments in its portfolio, then the Fund is required to establish a highly liquid investment minimum (“HLIM”). None of the Funds has established an HLIM.

During the period from January 1, 2021 to December 31, 2021, there were no material changes to the Programs and no material events that impacted the operation of the Funds’ Programs. During the period, the Funds held sufficient liquid assets to meet redemptions on a timely basis and did not have any illiquid security violations.

During the period January 1, 2022 through June 30, 2022, the Funds held sufficient liquid assets to meet redemptions on a timely basis and did not have any illiquid security violations.

Annual Program Assessment and Conclusion

In the opinion of the Program Administrators, the Program of each Fund approved by the Funds’ Board is operating effectively. The Program Administrators have also monitored, assessed and managed each Fund’s liquidity risk regularly throughout the period.

Pursuant to the Rule’s requirements, the Board has received and reviewed a written report prepared by each Fund’s Program Administrator that addressed the operation of the Programs, assessed their adequacy and effectiveness and described any material changes made to the Programs.

 

15  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Gateway Fund

 

    
Shares		      Description    Value (†)  
  Common Stocks — 97.3% of Net Assets  
   Aerospace & Defense — 1.6%

 

  173,178      Boeing Co. (The)(a)(b)    $ 23,676,896  
  41,278      HEICO Corp.(b)      5,412,371  
  118,598      L3Harris Technologies, Inc.(b)      28,665,137  
  552,963      Raytheon Technologies Corp.(b)      53,145,274  
     

 

 

  
        110,899,678  
     

 

 

  
   Air Freight & Logistics — 0.6%

 

  36,648      GXO Logistics, Inc.(a)(b)      1,585,759  
  230,116      United Parcel Service, Inc., Class B(b)      42,005,375  
     

 

 

  
        43,591,134  
     

 

 

  
   Airlines — 0.2%

 

  153,012      Alaska Air Group, Inc.(a)(b)      6,128,131  
  714,692      JetBlue Airways Corp.(a)(b)      5,981,972  
  144,851      United Airlines Holdings, Inc.(a)(b)      5,130,622  
     

 

 

  
        17,240,725  
     

 

 

  
   Auto Components — 0.1%

 

  36,852      Autoliv, Inc.(b)      2,637,498  
  106,265      Goodyear Tire & Rubber Co. (The)(a)(b)      1,138,098  
     

 

 

  
        3,775,596  
     

 

 

  
   Automobiles — 2.1%

 

  1,177,145      Ford Motor Co.(b)      13,101,624  
  481,645      General Motors Co.(a)(b)      15,297,045  
  183,165      Tesla, Inc.(a)(b)      123,346,974  
     

 

 

  
        151,745,643  
     

 

 

  
   Banks — 3.3%

 

  266,138      Associated Banc-Corp(b)      4,859,680  
  2,453,976      Bank of America Corp.(b)      76,392,273  
  839,557      JPMorgan Chase & Co.(b)      94,542,514  
  24,698      Signature Bank(b)      4,426,128  
  1,316,031      Wells Fargo & Co.(b)      51,548,934  
     

 

 

  
        231,769,529  
     

 

 

  
   Beverages — 1.7%

 

  608,810      Keurig Dr Pepper, Inc.(b)      21,545,786  
  188,341      Monster Beverage Corp.(a)(b)      17,459,211  
  494,838      PepsiCo, Inc.(b)      82,469,701  
     

 

 

  
        121,474,698  
     

 

 

  
   Biotechnology — 2.3%

 

  421,449      AbbVie, Inc.(b)      64,549,129  
  21,150      Alnylam Pharmaceuticals, Inc.(a)(b)      3,084,727  
  151,355      Amgen, Inc.(b)      36,824,671  
  57,306      Biogen, Inc.(a)(b)      11,686,986  
  25,770      BioMarin Pharmaceutical, Inc.(a)(b)      2,135,560  
  48,947      Exact Sciences Corp.(a)(b)      1,928,022  
  96,426      Ionis Pharmaceuticals, Inc.(a)(b)      3,569,691  
  89,206      Moderna, Inc.(a)(b)      12,743,077  
  27,863      Seagen, Inc.(a)(b)      4,930,079  
  68,273      Vertex Pharmaceuticals, Inc.(a)(b)      19,238,649  
     

 

 

  
        160,690,591  
     

 

 

  
   Building Products — 0.3%

 

  561,544      Carrier Global Corp.(b)      20,024,659  
  20,800      Lennox International, Inc.(b)      4,297,072  
     

 

 

  
        24,321,731  
     

 

 

  
   Capital Markets — 2.3%

 

  78,428      Blackstone, Inc.(b)      7,154,987  
  404,895      Charles Schwab Corp. (The)(b)      25,581,266  
  28,906      FactSet Research Systems, Inc.(b)      11,116,380  
  247,065      Intercontinental Exchange, Inc.(b)      23,233,993  
  86,329      KKR & Co., Inc.(b)      3,996,169  
   Capital Markets — continued

 

  474,198      Morgan Stanley(b)    $ 36,067,500  
  41,804      MSCI, Inc.(b)      17,229,519  
  114,105      S&P Global, Inc.(b)      38,460,231  
     

 

 

  
        162,840,045  
     

 

 

  
   Chemicals — 1.6%

 

  83,434      Ashland Global Holdings, Inc.(b)      8,597,874  
  104,391      Celanese Corp.(b)      12,277,425  
  335,148      Corteva, Inc.(b)      18,144,913  
  295,277      Dow, Inc.(b)      15,239,246  
  125,392      Eastman Chemical Co.(b)      11,256,440  
  63,650      Ingevity Corp.(a)(b)      4,018,861  
  167,820      LyondellBasell Industries NV, Class A(b)      14,677,537  
  125,903      Mosaic Co. (The)(b)      5,946,399  
  38,624      Nutrien Ltd.(b)      3,077,947  
  115,834      Olin Corp.(b)      5,360,797  
  95,921      RPM International, Inc.(b)      7,550,901  
  195,010      Valvoline, Inc.(b)      5,622,138  
     

 

 

  
        111,770,478  
     

 

 

  
   Commercial Services & Supplies — 0.8%

 

  122,157      Copart, Inc.(a)(b)      13,273,580  
  102,019      Waste Connections, Inc.(b)      12,646,275  
  206,119      Waste Management, Inc.(b)      31,532,084  
     

 

 

  
        57,451,939  
     

 

 

  
   Communications Equipment — 0.8%

 

  29,460      Ciena Corp.(a)(b)      1,346,322  
  1,290,574      Cisco Systems, Inc.(b)      55,030,075  
     

 

 

  
        56,376,397  
     

 

 

  
   Construction Materials — 0.2%

 

  48,861      Martin Marietta Materials, Inc.(b)      14,621,166  
     

 

 

  
   Consumer Finance — 0.5%

 

  121,623      Ally Financial, Inc.(b)      4,075,587  
  188,425      Discover Financial Services(b)      17,821,236  
  445,997      Synchrony Financial(b)      12,318,437  
     

 

 

  
        34,215,260  
     

 

 

  
   Containers & Packaging — 0.5%

 

  73,855      Avery Dennison Corp.(b)      11,954,909  
  60,185      Crown Holdings, Inc.(b)      5,547,251  
  120,587      Sonoco Products Co.(b)      6,878,282  
  213,615      WestRock Co.(b)      8,510,422  
     

 

 

  
        32,890,864  
     

 

 

  
   Distributors — 0.2%

 

  107,529      Genuine Parts Co.(b)      14,301,357  
     

 

 

  
   Diversified Consumer Services — 0.1%

 

  67,454      Service Corp. International(b)      4,662,420  
     

 

 

  
   Diversified Financial Services — 1.9%

 

  465,046      Berkshire Hathaway, Inc., Class B(a)(b)      126,966,859  
  133,431      Voya Financial, Inc.(b)      7,943,147  
     

 

 

  
        134,910,006  
     

 

 

  
   Diversified Telecommunication Services — 1.3%

 

  319,876      Liberty Global PLC, Class C(a)(b)      7,066,061  
  738,114      Lumen Technologies, Inc.(b)      8,052,824  
  1,463,014      Verizon Communications, Inc.(b)      74,247,960  
     

 

 

  
        89,366,845  
     

 

 

  
   Electric Utilities — 1.3%

 

  323,243      Alliant Energy Corp.(b)      18,945,272  
  498,834      American Electric Power Co., Inc.(b)      47,858,134  
  138,237      Evergy, Inc.(b)      9,019,964  

 

See accompanying notes to financial statements.

 

|  16

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Gateway Fund – (continued)

 

    
Shares		      Description    Value (†)  
   Electric Utilities — continued

 

  349,526      FirstEnergy Corp.(b)    $ 13,418,303  
  153,399      OGE Energy Corp.(b)      5,915,066  
     

 

 

  
        95,156,739  
     

 

 

  
   Electrical Equipment — 0.5%

 

  197,284      Eaton Corp. PLC(b)      24,855,811  
  50,567      Hubbell, Inc.(b)      9,030,255  
     

 

 

  
        33,886,066  
     

 

 

  
   Electronic Equipment, Instruments & Components — 0.7%

 

  97,069      CDW Corp.(b)      15,294,192  
  375,436      Corning, Inc.(b)      11,829,988  
  26,442      Teledyne Technologies, Inc.(a)(b)      9,918,659  
  33,350      Zebra Technologies Corp., Class A(a)(b)      9,803,232  
     

 

 

  
        46,846,071  
     

 

 

  
   Energy Equipment & Services — 0.5%

 

  710,523      Halliburton Co.(b)      22,282,002  
  224,454      Helmerich & Payne, Inc.(b)      9,664,989  
     

 

 

  
        31,946,991  
     

 

 

  
   Entertainment — 1.1%

 

  81,510      Live Nation Entertainment, Inc.(a)(b)      6,731,096  
  120,307      Netflix, Inc.(a)(b)      21,038,085  
  17,694      Roku, Inc.(a)(b)      1,453,385  
  476,369      Walt Disney Co. (The)(a)(b)      44,969,234  
     

 

 

  
        74,191,800  
     

 

 

  
   Food & Staples Retailing — 1.8%

 

  26,487      Casey’s General Stores, Inc.(b)      4,899,565  
  114,630      Costco Wholesale Corp.(b)      54,939,867  
  351,870      Kroger Co. (The)(b)      16,654,007  
  115,434      U.S. Foods Holding Corp.(a)(b)      3,541,515  
  396,050      Walmart, Inc.(b)      48,151,759  
     

 

 

  
        128,186,713  
     

 

 

  
   Food Products — 1.0%

 

  61,781      Bunge Ltd.(b)      5,602,919  
  285,638      Hormel Foods Corp.(b)      13,527,816  
  74,762      Lamb Weston Holdings, Inc.(b)      5,342,492  
  698,295      Mondelez International, Inc., Class A(b)      43,357,137  
  52,500      Post Holdings, Inc.(a)(b)      4,323,375  
     

 

 

  
        72,153,739  
     

 

 

  
   Gas Utilities — 0.0%

 

  76,973      UGI Corp.(b)      2,971,928  
     

 

 

  
   Health Care Equipment & Supplies — 2.6%

 

  461,268      Abbott Laboratories(b)      50,116,768  
  238,451      Baxter International, Inc.(b)      15,315,708  
  554,460      Boston Scientific Corp.(a)(b)      20,664,724  
  259,618      Edwards Lifesciences Corp.(a)(b)      24,687,076  
  13,103      Insulet Corp.(a)(b)      2,855,668  
  108,519      Intuitive Surgical, Inc.(a)(b)      21,780,849  
  381,260      Medtronic PLC(b)      34,218,085  
  55,109      STERIS PLC(b)      11,360,720  
  24,419      Teleflex, Inc.(b)      6,003,411  
     

 

 

  
        187,003,009  
     

 

 

  
   Health Care Providers & Services — 3.2%

 

  443,757      CVS Health Corp.(b)      41,118,524  
  83,702      Elevance Health, Inc.(b)      40,392,911  
  88,160      HCA Healthcare, Inc.(b)      14,816,170  
  16,707      Molina Healthcare, Inc.(a)(b)      4,671,444  
  233,630      UnitedHealth Group, Inc.(b)      119,999,377  
  65,316      Universal Health Services, Inc., Class B(b)      6,577,974  
     

 

 

  
        227,576,400  
     

 

 

  
   Health Care Technology — 0.1%

 

  35,189      Veeva Systems, Inc., Class A(a)(b)    $ 6,968,830  
     

 

 

  
   Hotels, Restaurants & Leisure — 1.6%

 

  12,321      Booking Holdings, Inc.(a)(b)      21,549,306  
  153,850      Hilton Grand Vacations, Inc.(a)(b)      5,497,061  
  187,641      Hilton Worldwide Holdings, Inc.(b)      20,910,713  
  210,912      McDonald’s Corp.(b)      52,069,955  
  174,700      Melco Resorts & Entertainment Ltd., Sponsored ADR(a)(b)      1,004,525  
  163,196      Restaurant Brands International, Inc.(b)      8,184,279  
  12,225      Vail Resorts, Inc.(b)      2,665,661  
  208,390      Wendy’s Co. (The)(b)      3,934,403  
     

 

 

  
        115,815,903  
     

 

 

  
   Household Durables — 0.2%

 

  2,420      NVR, Inc.(a)(b)      9,690,019  
  129,073      Toll Brothers, Inc.(b)      5,756,656  
     

 

 

  
        15,446,675  
     

 

 

  
   Household Products — 1.6%

 

  99,424      Clorox Co. (The)(b)      14,016,795  
  690,743      Procter & Gamble Co. (The)(b)      99,321,936  
     

 

 

  
        113,338,731  
     

 

 

  
   Industrial Conglomerates — 1.3%

 

  237,845      3M Co.(b)      30,779,521  
  343,967      General Electric Co.(b)      21,900,379  
  213,732      Honeywell International, Inc.(b)      37,148,759  
     

 

 

  
        89,828,659  
     

 

 

  
   Insurance — 2.1%

 

  691,228      Aflac, Inc.(b)      38,245,645  
  62,761      American Financial Group, Inc.(b)      8,711,854  
  104,217      Aon PLC, Class A(b)      28,105,241  
  117,173      Arch Capital Group Ltd.(a)(b)      5,330,200  
  187,556      Arthur J. Gallagher & Co.(b)      30,579,130  
  161,064      Brown & Brown, Inc.(b)      9,396,474  
  74,687      Fidelity National Financial, Inc.(b)      2,760,431  
  157,228      Lincoln National Corp.(b)      7,353,554  
  3,155      Markel Corp.(a)(b)      4,080,204  
  25,430      RenaissanceRe Holdings Ltd.(b)      3,976,489  
  329,593      Unum Group(b)      11,212,754  
     

 

 

  
        149,751,976  
     

 

 

  
   Interactive Media & Services — 5.3%

 

  32,448      Alphabet, Inc., Class A(a)(b)      70,712,628  
  95,230      Alphabet, Inc., Class C(a)(b)      208,310,864  
  83,784      Match Group, Inc.(a)(b)      5,838,907  
  512,545      Meta Platforms, Inc., Class A(a)(b)      82,647,881  
  185,966      Twitter, Inc.(a)(b)      6,953,269  
     

 

 

  
        374,463,549  
     

 

 

  
   Internet & Direct Marketing Retail — 3.0%

 

  1,929,880      Amazon.com, Inc.(a)(b)      204,972,555  
  45,683      Etsy, Inc.(a)(b)      3,344,452  
  2,538      MercadoLibre, Inc.(a)(b)      1,616,376  
     

 

 

  
        209,933,383  
     

 

 

  
   IT Services — 4.2%

 

  176,983      Accenture PLC, Class A(b)      49,139,330  
  147,645      Automatic Data Processing, Inc.(b)      31,011,356  
  10,441      Block, Inc.(a)(b)      641,704  
  114,609      DXC Technology Co.(a)(b)      3,473,799  
  16,340      EPAM Systems, Inc.(a)(b)      4,816,705  
  149,581      Fidelity National Information Services, Inc.(b)      13,712,090  
  37,892      Gartner, Inc.(a)(b)      9,163,422  
  179,226      Mastercard, Inc., Class A(b)      56,542,218  

 

See accompanying notes to financial statements.

 

17  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Gateway Fund – (continued)

 

    
Shares		      Description    Value (†)  
   IT Services — continued

 

  160,547      Paychex, Inc.(b)    $ 18,281,487  
  300,792      PayPal Holdings, Inc.(a)(b)      21,007,313  
  21,480      Shopify, Inc., Class A(a)(b)      671,035  
  21,371      SS&C Technologies Holdings, Inc.(b)      1,241,014  
  24,981      Twilio, Inc., Class A(a)(b)      2,093,658  
  72,450      VeriSign, Inc.(a)(b)      12,123,059  
  389,379      Visa, Inc., Class A(b)      76,664,831  
     

 

 

  
        300,583,021  
     

 

 

  
   Leisure Products — 0.0%

 

  19,460      Polaris, Inc.(b)      1,931,989  
     

 

 

  
   Life Sciences Tools & Services — 1.7%

 

  151,550      Avantor, Inc.(a)(b)      4,713,205  
  144,625      Danaher Corp.(b)      36,665,330  
  29,853      ICON PLC(a)(b)      6,469,145  
  64,916      Illumina, Inc.(a)(b)      11,967,914  
  108,523      Thermo Fisher Scientific, Inc.(b)      58,958,375  
     

 

 

  
        118,773,969  
     

 

 

  
   Machinery — 1.4%

 

  164,740      Caterpillar, Inc.(b)      29,448,922  
  89,903      Cummins, Inc.(b)      17,398,928  
  78,757      Deere & Co.(b)      23,585,359  
  93,930      Parker-Hannifin Corp.(b)      23,111,476  
  121,067      Pentair PLC(b)      5,541,237  
  63,733      Timken Co. (The)(b)      3,381,036  
     

 

 

  
        102,466,958  
     

 

 

  
   Media — 0.8%

 

  1,269,593      Comcast Corp., Class A(b)      49,818,829  
  33,220      Liberty Broadband Corp., Class C(a)(b)      3,841,561  
  532,406      Sirius XM Holdings, Inc.(b)      3,263,649  
     

 

 

  
        56,924,039  
     

 

 

  
   Metals & Mining — 0.4%

 

  28,464      Alcoa Corp.(b)      1,297,389  
  213,850      Newmont Corp.(b)      12,760,430  
  116,378      Southern Copper Corp.(b)      5,796,788  
  105,443      Steel Dynamics, Inc.(b)      6,975,054  
     

 

 

  
        26,829,661  
     

 

 

  
   Multi-Utilities — 1.7%

 

  318,845      Ameren Corp.(b)      28,810,834  
  346,710      Consolidated Edison, Inc.(b)      32,972,121  
  459,813      Public Service Enterprise Group, Inc.(b)      29,096,967  
  314,004      WEC Energy Group, Inc.(b)      31,601,362  
     

 

 

  
        122,481,284  
     

 

 

  
   Multiline Retail — 0.4%

 

  101,909      Nordstrom, Inc.(b)      2,153,337  
  172,248      Target Corp.(b)      24,326,585  
     

 

 

  
        26,479,922  
     

 

 

  
   Oil, Gas & Consumable Fuels — 4.0%

 

  346,281      Cenovus Energy, Inc.(b)      6,582,802  
  61,621      Cheniere Energy, Inc.(b)      8,197,442  
  489,553      Chevron Corp.(b)      70,877,483  
  457,040      ConocoPhillips(b)      41,046,762  
  69,250      Continental Resources, Inc.(b)      4,525,488  
  110,416      Enbridge, Inc.(b)      4,666,180  
  1,085,908      Exxon Mobil Corp.(b)      92,997,161  
  61,365      HF Sinclair Corp.(b)      2,771,243  
  294,587      Occidental Petroleum Corp.(b)      17,345,283  
  254,599      ONEOK, Inc.(b)      14,130,245  
  246,120      Suncor Energy, Inc.(b)      8,631,428  
   Oil, Gas & Consumable Fuels — continued

 

  37,460      Targa Resources Corp.(b)    $ 2,235,238  
  81,107      Valero Energy Corp.      8,620,052  
     

 

 

  
        282,626,807  
     

 

 

  
   Personal Products — 0.1%

 

  66,558      BellRing Brands, Inc.(a)(b)      1,656,629  
  124,539      Herbalife Nutrition Ltd.(a)(b)      2,546,822  
     

 

 

  
        4,203,451  
     

 

 

  
   Pharmaceuticals — 4.8%

 

  577,842      Bristol-Myers Squibb Co.(b)      44,493,834  
  187,963      Eli Lilly & Co.(b)      60,943,244  
  14,229      Jazz Pharmaceuticals PLC(a)(b)      2,219,866  
  609,891      Johnson & Johnson(b)      108,261,751  
  597,588      Merck & Co., Inc.(b)      54,482,098  
  1,370,907      Pfizer, Inc.(b)      71,876,654  
     

 

 

  
        342,277,447  
     

 

 

  
   Professional Services — 0.3%

 

  82,175      Booz Allen Hamilton Holding Corp.(b)      7,425,333  
  97,840      CoStar Group, Inc.(a)(b)      5,910,514  
  63,383      ManpowerGroup, Inc.(b)      4,843,095  
  72,293      TransUnion(b)      5,782,717  
     

 

 

  
        23,961,659  
     

 

 

  
   Real Estate Management & Development — 0.0%

 

  56,375      Zillow Group, Inc., Class C(a)(b)      1,789,906  
     

 

 

  
   REITs – Apartments — 0.7%

 

  252,006      American Homes 4 Rent, Class A(b)      8,931,093  
  85,332      Camden Property Trust(b)      11,475,447  
  409,105      Invitation Homes, Inc.(b)      14,555,956  
  265,036      UDR, Inc.(b)      12,202,257  
     

 

 

  
        47,164,753  
     

 

 

  
   REITs – Diversified — 0.9%

 

  147,700      American Tower Corp.(b)      37,750,643  
  361,090      Duke Realty Corp.(b)      19,841,895  
  100,874      W.P. Carey, Inc.(b)      8,358,420  
     

 

 

  
        65,950,958  
     

 

 

  
   REITs – Health Care — 0.3%

 

  260,504      Healthcare Realty Trust, Inc.(b)      7,085,709  
  453,565      Medical Properties Trust, Inc.(b)      6,925,938  
  450,523      Sabra Health Care REIT, Inc.(b)      6,293,806  
     

 

 

  
        20,305,453  
     

 

 

  
   REITs – Manufactured Homes — 0.3%

 

  143,552      Equity LifeStyle Properties, Inc.(b)      10,116,109  
  68,343      Sun Communities, Inc.(b)      10,891,141  
     

 

 

  
        21,007,250  
     

 

 

  
   REITs – Mortgage — 0.0%

 

  515,972      Annaly Capital Management, Inc.(b)      3,049,395  
     

 

 

  
   REITs – Office Property — 0.1%

 

  188,262      Douglas Emmett, Inc.(b)      4,213,304  
  61,813      Kilroy Realty Corp.(b)      3,234,674  
     

 

 

  
        7,447,978  
     

 

 

  
   REITs – Single Tenant — 0.1%

 

  221,497      National Retail Properties, Inc.(b)      9,524,371  
     

 

 

  
   REITs – Storage — 0.1%

 

  151,601      CubeSmart(b)      6,476,395  
     

 

 

  
   Road & Rail — 0.9%

 

  115,540      Canadian Pacific Railway Ltd.(b)      8,069,313  
  898,720      CSX Corp.(b)      26,116,803  
  47,741      J.B. Hunt Transport Services, Inc.(b)      7,517,775  

 

See accompanying notes to financial statements.

 

|  18

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Gateway Fund – (continued)

 

    
Shares		      Description    Value (†)  
   Road & Rail — continued

 

  47,143      Lyft, Inc., Class A(a)(b)    $ 626,059  
  62,946      Old Dominion Freight Line, Inc.(b)      16,131,801  
  193,884      Uber Technologies, Inc.(a)(b)      3,966,867  
  36,648      XPO Logistics, Inc.(a)(b)      1,764,968  
     

 

 

  
        64,193,586  
     

 

 

  
   Semiconductors & Semiconductor Equipment — 5.1%

 

  358,737      Advanced Micro Devices, Inc.(a)(b)      27,432,618  
  170,421      Analog Devices, Inc.(b)      24,896,804  
  260,387      Applied Materials, Inc.(b)      23,690,009  
  104,030      Broadcom, Inc.(b)      50,538,814  
  1,054,967      Intel Corp.(b)      39,466,316  
  161,781      Marvell Technology, Inc.(b)      7,042,327  
  304,535      Micron Technology, Inc.(b)      16,834,695  
  554,709      NVIDIA Corp.(b)      84,088,337  
  287,101      QUALCOMM, Inc.(b)      36,674,282  
  106,600      Teradyne, Inc.(b)      9,546,030  
  258,807      Texas Instruments, Inc.(b)      39,765,696  
     

 

 

  
        359,975,928  
     

 

 

  
   Software — 8.8%

 

  121,776      Adobe, Inc.(a)(b)      44,577,323  
  61,145      Black Knight, Inc.(a)(b)      3,998,272  
  135,877      Cadence Design Systems, Inc.(a)(b)      20,385,626  
  80,963      Ceridian HCM Holding, Inc.(a)(b)      3,811,738  
  1,648,287      Microsoft Corp.(b)      423,329,550  
  436,720      Oracle Corp.(b)      30,513,626  
  13,042      Palo Alto Networks, Inc.(a)(b)      6,441,966  
  252,511      Salesforce, Inc.(a)(b)      41,674,416  
  63,647      ServiceNow, Inc.(a)(b)      30,265,421  
  48,409      VMware, Inc., Class A(b)      5,517,658  
  67,483      Workday, Inc., Class A(a)(b)      9,419,277  
  27,390      Zoom Video Communications, Inc., Class A(a)(b)      2,957,298  
     

 

 

  
        622,892,171  
     

 

 

  
   Specialty Retail — 2.0%

 

  169,038      American Eagle Outfitters, Inc.(b)      1,889,845  
  17,696      Burlington Stores, Inc.(a)(b)      2,410,726  
  20,171      Dick’s Sporting Goods, Inc.(b)      1,520,288  
  106,125      Foot Locker, Inc.(b)      2,679,656  
  271,464      Home Depot, Inc. (The)(b)      74,454,431  
  231,646      Lowe’s Cos., Inc.(b)      40,461,607  
  29,337      O’Reilly Automotive, Inc.(a)(b)      18,533,943  
  17,808      Williams-Sonoma, Inc.(b)      1,975,798  
     

 

 

  
        143,926,294  
     

 

 

  
   Technology Hardware, Storage & Peripherals — 6.7%

 

  3,421,093      Apple, Inc.(b)      467,731,835  
  63,335      Dell Technologies, Inc., Class C(b)      2,926,710  
     

 

 

  
        470,658,545  
     

 

 

  
   Textiles, Apparel & Luxury Goods — 0.6%

 

  20,562      Lululemon Athletica, Inc.(a)(b)      5,605,407  
  327,039      NIKE, Inc., Class B(b)      33,423,386  
     

 

 

  
        39,028,793  
     

 

 

  
   Tobacco — 0.5%

 

  816,747      Altria Group, Inc.(b)      34,115,522  
     

 

 

  
   Trading Companies & Distributors — 0.1%

 

  38,324      GATX Corp.(b)      3,608,588  
     

 

 

  
   Total Common Stocks
(Identified Cost $3,460,791,164)		      6,885,039,357  
     

 

 

  
     
   Total Purchased Options — 1.6%
(Identified Cost $103,224,393) (see detail below)		      116,109,190  
  

 

 

  
Principal
Amount		      Description    Value (†)  
  Short-Term Investments — 2.3%  
$ 160,482,190      Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $160,483,750 on 7/01/2022 collateralized by $163,871,200 U.S. Treasury Note, 3.000% due 6/30/2024 valued at $163,691,925 including accrued interest (Note 2 of Notes to Financial Statements)
(Identified Cost $160,482,190)		    $ 160,482,190  
     

 

 

  
     
   Total Investments — 101.2%
(Identified Cost $3,724,497,747)		      7,161,630,737  
   Other assets less liabilities — (1.2)%      (86,569,008 ) 
     

 

 

  
   Net Assets — 100.0%    $ 7,075,061,729  
     

 

 

  

 

Purchased Options — 1.6%

 

Description   Expiration
Date		     Exercise
Price		   Contracts     Notional
Amount		     Cost     Value (†)  
Index Options — 1.6%

 

S&P 500® Index, Put(a)     9/16/2022     3,300     2,510     $ 950,130,380     $ 18,776,055     $ 11,947,600  
S&P 500® Index, Put(a)     9/16/2022     3,400     2,509       949,751,842       22,283,683       15,969,785  
S&P 500® Index, Put(a)     9/16/2022     3,600     2,509       949,751,842       19,506,221       27,661,725  
S&P 500® Index, Put(a)     10/21/2022     3,325     2,587       979,277,806       17,572,198       19,570,655  
S&P 500® Index, Put(a)     11/18/2022     3,600     2,509       949,751,842       25,086,236       40,959,425  
         

 

 

    

 

 

  
Total           $ 103,224,393     $ 116,109,190  
         

 

 

    

 

 

  

 

Written Options — (1.3%)

 

Description   Expiration
Date		     Exercise
Price		   Contracts     Notional
Amount		     Premiums
(Received)		     Value (†)  
Index Options — (1.3%)

 

S&P 500® Index, Call     7/15/2022     3,825     (2,007 )    $ (759,725,766 )    $ (19,924,347 )    $ (11,319,480 ) 
S&P 500® Index, Call     7/15/2022     3,850     (2,007 )      (759,725,766 )      (21,309,964 )      (9,121,815 ) 
S&P 500® Index, Call     7/15/2022     3,975     (2,007 )      (759,725,766 )      (18,218,913 )      (2,508,750 ) 
S&P 500® Index, Call     7/15/2022     4,100     (2,007 )      (759,725,766 )      (18,965,181 )      (566,977 ) 
S&P 500® Index, Call     7/15/2022     4,200     (2,007 )      (759,725,766 )      (20,291,419 )      (180,630 ) 
S&P 500® Index, Call     7/29/2022     3,725     (2,007 )      (759,725,766 )      (22,595,870 )      (29,533,005 ) 
S&P 500® Index, Call     7/29/2022     3,800     (1,978 )      (748,748,164 )      (17,918,010 )      (20,432,740 ) 
S&P 500® Index, Call     8/19/2022     3,975     (2,006 )      (759,347,228 )      (13,736,085 )      (10,932,700 ) 
S&P 500® Index, Call     8/19/2022     4,000     (2,007 )      (759,725,766 )      (25,782,530 )      (9,382,725 ) 
         

 

 

    

 

 

  
Total           $ (178,742,319 )    $ (93,978,822 ) 
         

 

 

    

 

 

  

 

See accompanying notes to financial statements.

 

19  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Gateway Fund – (continued)

 

  
  (†)      See Note 2 of Notes to Financial Statements.
  (a)      Non-income producing security.
  (b)      Security (or a portion thereof) has been pledged as collateral for open derivative contracts.
  
  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

 

Industry Summary at June 30, 2022 (Unaudited)

 

Software

      8.8 % 

Technology Hardware, Storage & Peripherals

      6.7  

Interactive Media & Services

      5.3  

Semiconductors & Semiconductor Equipment

      5.1  

Pharmaceuticals

      4.8  

IT Services

      4.2  

Oil, Gas & Consumable Fuels

      4.0  

Banks

      3.3  

Health Care Providers & Services

      3.2  

Internet & Direct Marketing Retail

      3.0  

Health Care Equipment & Supplies

      2.6  

Capital Markets

      2.3  

Biotechnology

      2.3  

Automobiles

      2.1  

Insurance

      2.1  

Specialty Retail

      2.0  

Other Investments, less than 2% each

      37.1  

Short-Term Investments

      2.3  
  

 

 

  

Total Investments

      101.2  

Other assets less liabilities (including open written options)

      (1.2 ) 
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

|  20

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Gateway Equity Call Premium Fund

 

Shares      Description    Value (†)  
  Common Stocks — 98.6% of Net Assets  
   Aerospace & Defense — 1.6%

 

  2,679      Boeing Co. (The)(a)(b)    $ 366,273  
  1,768      Lockheed Martin Corp.(b)      760,169  
  9,325      Raytheon Technologies Corp.(b)      896,226  
     

 

 

  
        2,022,668  
     

 

 

  
   Air Freight & Logistics — 0.4%

 

  2,141      FedEx Corp.(b)      485,386  
  492      GXO Logistics, Inc.(a)(b)      21,289  
     

 

 

  
        506,675  
     

 

 

  
   Airlines — 0.2%

 

  8,874      Delta Air Lines, Inc.(a)(b)      257,080  
  5,618      JetBlue Airways Corp.(a)(b)      47,022  
     

 

 

  
        304,102  
     

 

 

  
   Auto Components — 0.1%

 

  858      Adient PLC(a)(b)      25,422  
  1,374      Gentex Corp.(b)      38,431  
  343      Lear Corp.(b)      43,180  
  1,363      Magna International, Inc.(b)      74,829  
     

 

 

  
        181,862  
     

 

 

  
   Automobiles — 2.1%

 

  32,390      Ford Motor Co.(b)      360,500  
  3,397      Tesla, Inc.(a)(b)      2,287,608  
     

 

 

  
        2,648,108  
     

 

 

  
   Banks — 3.8%

 

  35,300      Bank of America Corp.(b)      1,098,889  
  10,229      Citigroup, Inc.(b)      470,432  
  2,043      Comerica, Inc.(b)      149,915  
  1,810      East West Bancorp, Inc.(b)      117,288  
  12,403      Fifth Third Bancorp(b)      416,741  
  2,398      First Republic Bank(b)      345,792  
  12,359      JPMorgan Chase & Co.(b)      1,391,747  
  375      SVB Financial Group(a)(b)      148,121  
  18,044      Wells Fargo & Co.(b)      706,783  
     

 

 

  
        4,845,708  
     

 

 

  
   Beverages — 2.0%

 

  20,952      Coca-Cola Co. (The)(b)      1,318,090  
  7,896      PepsiCo, Inc.(b)      1,315,948  
     

 

 

  
        2,634,038  
     

 

 

  
   Biotechnology — 2.1%

 

  7,989      AbbVie, Inc.(b)      1,223,595  
  414      Alnylam Pharmaceuticals, Inc.(a)(b)      60,382  
  2,974      Amgen, Inc.(b)      723,574  
  1,027      Biogen, Inc.(a)(b)      209,446  
  1,134      BioMarin Pharmaceutical, Inc.(a)      93,975  
  976      Exact Sciences Corp.(a)(b)      38,445  
  1,295      Moderna, Inc.(a)(b)      184,991  
  809      Seagen, Inc.(a)(b)      143,144  
     

 

 

  
        2,677,552  
     

 

 

  
   Building Products — 0.7%

 

  1,115      A.O. Smith Corp.(b)      60,968  
  9,188      Carrier Global Corp.(b)      327,644  
  2,175      Fortune Brands Home & Security, Inc.(b)      130,239  
  5,487      Johnson Controls International PLC(b)      262,718  
  368      Lennox International, Inc.(b)      76,025  
     

 

 

  
        857,594  
     

 

 

  
   Capital Markets — 2.7%

 

  6,646      Bank of New York Mellon Corp. (The)(b)      277,205  
  1,183      BlackRock, Inc.(b)      720,494  
   Capital Markets — continued

 

  833      Blackstone, Inc.(b)    $ 75,995  
  7,387      Charles Schwab Corp. (The)(b)      466,711  
  522      FactSet Research Systems, Inc.(b)      200,746  
  1,798      Goldman Sachs Group, Inc. (The)(b)      534,042  
  1,993      KKR & Co., Inc.(b)      92,256  
  7,554      Morgan Stanley(b)      574,557  
  710      MSCI, Inc.(b)      292,626  
  2,437      Raymond James Financial, Inc.(b)      217,892  
     

 

 

  
        3,452,524  
     

 

 

  
   Chemicals — 1.6%

 

  849      AdvanSix, Inc.(b)      28,391  
  1,991      Air Products & Chemicals, Inc.(b)      478,796  
  729      Ashland Global Holdings, Inc.(b)      75,123  
  1,339      CF Industries Holdings, Inc.(b)      114,793  
  2,066      Huntsman Corp.(b)      58,571  
  2,759      Linde PLC(b)      793,295  
  1,043      Nutrien Ltd.(b)      83,117  
  2,010      PPG Industries, Inc.(b)      229,823  
  2,080      RPM International, Inc.(b)      163,738  
  1,880      Valvoline, Inc.(b)      54,200  
     

 

 

  
        2,079,847  
     

 

 

  
   Commercial Services & Supplies — 0.6%

 

  1,816      Waste Connections, Inc.(b)      225,111  
  3,732      Waste Management, Inc.(b)      570,922  
     

 

 

  
        796,033  
     

 

 

  
   Communications Equipment — 0.9%

 

  2,419      Ciena Corp.(a)(b)      110,548  
  22,953      Cisco Systems, Inc.(b)      978,716  
  3,169      Telefonaktiebolaget LM Ericsson, Sponsored ADR(b)      23,451  
     

 

 

  
        1,112,715  
     

 

 

  
   Consumer Finance — 0.2%

 

  4,484      Ally Financial, Inc.(b)      150,259  
  6,190      Synchrony Financial(b)      170,968  
     

 

 

  
        321,227  
     

 

 

  
   Containers & Packaging — 0.3%

 

  1,233      Crown Holdings, Inc.(b)      113,646  
  1,388      Packaging Corp. of America(b)      190,850  
  2,565      WestRock Co.(b)      102,189  
     

 

 

  
        406,685  
     

 

 

  
   Diversified Financial Services — 1.8%

 

  8,682      Berkshire Hathaway, Inc., Class B(a)(b)      2,370,360  
     

 

 

  
   Diversified Telecommunication Services — 1.0%

 

  25,755      Verizon Communications, Inc.(b)      1,307,066  
     

 

 

  
   Electric Utilities — 1.8%

 

  5,424      Alliant Energy Corp.(b)      317,901  
  8,376      American Electric Power Co., Inc.(b)      803,593  
  2,101      OGE Energy Corp.(b)      81,015  
  15,142      Southern Co. (The)(b)      1,079,776  
     

 

 

  
        2,282,285  
     

 

 

  
   Electrical Equipment — 0.6%

 

  378      Acuity Brands, Inc.(b)      58,227  
  4,803      Emerson Electric Co.(b)      382,031  
  905      Hubbell, Inc.(b)      161,615  
  2,698      Sensata Technologies Holding PLC(b)      111,454  
     

 

 

  
        713,327  
     

 

 

  
   Electronic Equipment, Instruments & Components — 0.6%

 

  1,208      Arrow Electronics, Inc.(a)(b)      135,405  
  3,387      Avnet, Inc.(b)      145,234  
  1,494      CDW Corp.(b)      235,395  

 

See accompanying notes to financial statements.

 

21  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Gateway Equity Call Premium Fund – (continued)

 

Shares      Description    Value (†)  
   Electronic Equipment, Instruments & Components — continued

 

  4,536      Flex Ltd.(a)(b)    $ 65,636  
  3,792      Trimble, Inc.(a)(b)      220,808  
     

 

 

  
        802,478  
     

 

 

  
   Energy Equipment & Services — 0.4%

 

  10,927      Halliburton Co.(b)      342,671  
  10,837      NOV, Inc.(b)      183,253  
     

 

 

  
        525,924  
     

 

 

  
   Entertainment — 1.1%

 

  973      Live Nation Entertainment, Inc.(a)(b)      80,350  
  200      Madison Square Garden Entertainment Corp.(a)(b)      10,524  
  475      Madison Square Garden Sports Corp.(a)(b)      71,725  
  1,736      Netflix, Inc.(a)(b)      303,574  
  206      Roku, Inc.(a)(b)      16,921  
  7,800      Walt Disney Co. (The)(a)(b)      736,320  
  12,095      Warner Bros Discovery, Inc.(a)(b)      162,315  
     

 

 

  
        1,381,729  
     

 

 

  
   Food & Staples Retailing — 1.7%

 

  2,000      Costco Wholesale Corp.(b)      958,560  
  2,903      Sysco Corp.(b)      245,913  
  7,676      Walmart, Inc.(b)      933,248  
     

 

 

  
        2,137,721  
     

 

 

  
   Food Products — 0.8%

 

  1,103      Bunge Ltd.(b)      100,031  
  1,836      Hain Celestial Group, Inc. (The)(a)(b)      43,587  
  1,582      Ingredion, Inc.(b)      139,469  
  7,270      Kellogg Co.(b)      518,642  
  1,775      Post Holdings, Inc.(a)(b)      146,171  
  1,107      TreeHouse Foods, Inc.(a)(b)      46,295  
     

 

 

  
        994,195  
     

 

 

  
   Gas Utilities — 0.0%

 

  1,531      UGI Corp.(b)      59,112  
     

 

 

  
   Health Care Equipment & Supplies — 2.4%

 

  9,147      Abbott Laboratories(b)      993,821  
  1,359      Alcon, Inc.(b)      94,980  
  463      Align Technology, Inc.(a)(b)      109,578  
  826      Cooper Cos., Inc. (The)(b)      258,637  
  753      IDEXX Laboratories, Inc.(a)(b)      264,100  
  407      Insulet Corp.(a)(b)      88,702  
  7,008      Medtronic PLC(b)      628,968  
  1,047      ResMed, Inc.(b)      219,483  
  1,564      STERIS PLC(b)      322,419  
  650      Teleflex, Inc.(b)      159,802  
     

 

 

  
        3,140,490  
     

 

 

  
   Health Care Providers & Services — 3.5%

 

  4,703      Centene Corp.(a)(b)      397,921  
  2,113      Cigna Corp.(b)      556,818  
  1,307      DaVita, Inc.(a)(b)      104,508  
  1,502      Elevance Health, Inc.(b)      724,835  
  791      Laboratory Corp. of America Holdings(b)      185,379  
  2,386      MEDNAX, Inc.(a)(b)      50,130  
  968      Molina Healthcare, Inc.(a)(b)      270,662  
  4,267      UnitedHealth Group, Inc.(b)      2,191,659  
     

 

 

  
        4,481,912  
     

 

 

  
   Health Care Technology — 0.1%

 

  837      Veeva Systems, Inc., Class A(a)(b)      165,759  
     

 

 

  
   Hotels, Restaurants & Leisure — 1.7%

 

  178      Booking Holdings, Inc.(a)(b)      311,320  
  7,208      Carnival Corp.(a)(b)      62,349  
  222      Domino’s Pizza, Inc.(b)      86,516  
   Hotels, Restaurants & Leisure — continued

 

  1,238      Hilton Grand Vacations, Inc.(a)(b)    $ 44,234  
  2,818      Hilton Worldwide Holdings, Inc.(b)      314,038  
  3,195      McDonald’s Corp.(b)      788,782  
  2,401      MGM Resorts International(b)      69,509  
  7      Restaurant Brands International, Inc.(b)      351  
  5,524      Starbucks Corp.(b)      421,978  
  905      Trip.com Group Ltd., ADR(a)(b)      24,842  
  205      Vail Resorts, Inc.(b)      44,700  
     

 

 

  
        2,168,619  
     

 

 

  
   Household Durables — 0.2%

 

  3,921      PulteGroup, Inc.(b)      155,389  
  2,218      Toll Brothers, Inc.(b)      98,923  
     

 

 

  
        254,312  
     

 

 

  
   Household Products — 1.7%

 

  2,214      Clorox Co. (The)(b)      312,130  
  12,801      Procter & Gamble Co. (The)(b)      1,840,656  
     

 

 

  
        2,152,786  
     

 

 

  
   Industrial Conglomerates — 1.0%

 

  3,889      3M Co.(b)      503,276  
  4,735      Honeywell International, Inc.(b)      822,990  
     

 

 

  
        1,326,266  
     

 

 

  
   Insurance — 2.0%

 

  6,409      Arch Capital Group Ltd.(a)(b)      291,546  
  4,423      Chubb Ltd.(b)      869,473  
  2,210      Cincinnati Financial Corp.(b)      262,946  
  5,403      Manulife Financial Corp.(b)      93,634  
  5,821      Prudential Financial, Inc.(b)      556,953  
  911      RenaissanceRe Holdings Ltd.(b)      142,453  
  1,533      Willis Towers Watson PLC(b)      302,599  
     

 

 

  
        2,519,604  
     

 

 

  
   Interactive Media & Services — 5.4%

 

  800      Alphabet, Inc., Class A(a)(b)      1,743,408  
  1,588      Alphabet, Inc., Class C(a)(b)      3,473,671  
  1,601      Match Group, Inc.(a)(b)      111,574  
  9,212      Meta Platforms, Inc., Class A(a)(b)      1,485,435  
  3,542      Twitter, Inc.(a)(b)      132,435  
     

 

 

  
        6,946,523  
     

 

 

  
   Internet & Direct Marketing Retail — 3.1%

 

  35,660      Amazon.com, Inc.(a)(b)      3,787,449  
  841      JD.com, Inc., ADR(b)      54,009  
  147      MercadoLibre, Inc.(a)(b)      93,620  
     

 

 

  
        3,935,078  
     

 

 

  
   IT Services — 4.1%

 

  3,184      Accenture PLC, Class A(b)      884,038  
  466      Block, Inc.(a)(b)      28,640  
  836      FleetCor Technologies, Inc.(a)(b)      175,652  
  1,473      Global Payments, Inc.(b)      162,973  
  4,664      International Business Machines Corp.(b)      658,510  
  600      Kyndryl Holdings, Inc.(a)(b)      5,868  
  3,872      Mastercard, Inc., Class A(b)      1,221,539  
  4,867      PayPal Holdings, Inc.(a)(b)      339,911  
  510      Shopify, Inc., Class A(a)(b)      15,932  
  2,007      SS&C Technologies Holdings, Inc.(b)      116,547  
  479      Twilio, Inc., Class A(a)(b)      40,145  
  1,088      VeriSign, Inc.(a)(b)      182,055  
  7,464      Visa, Inc., Class A(b)      1,469,587  
     

 

 

  
        5,301,397  
     

 

 

  

 

See accompanying notes to financial statements.

 

|  22

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Gateway Equity Call Premium Fund – (continued)

 

Shares      Description    Value (†)  
   Leisure Products — 0.1%   
  590      Brunswick Corp.(b)    $ 38,574  
  515      Polaris, Inc.(b)      51,129  
     

 

 

  
        89,703  
     

 

 

  
   Life Sciences Tools & Services — 1.7%

 

  5,219      Avantor, Inc.(a)(b)      162,311  
  434      Bio-Rad Laboratories, Inc., Class A(a)(b)      214,830  
  510      ICON PLC(a)(b)      110,517  
  910      Illumina, Inc.(a)(b)      167,767  
  2,203      Thermo Fisher Scientific, Inc.(b)      1,196,846  
  1,105      Waters Corp.(a)(b)      365,733  
     

 

 

  
        2,218,004  
     

 

 

  
   Machinery — 1.4%

 

  471      AGCO Corp.(b)      46,488  
  2,799      Caterpillar, Inc.(b)      500,349  
  1,696      Cummins, Inc.(b)      328,227  
  1,260      Deere & Co.(b)      377,332  
  1,160      IDEX Corp.(b)      210,691  
  5,051      Otis Worldwide Corp.(b)      356,954  
     

 

 

  
        1,820,041  
     

 

 

  
   Media — 0.8%

 

  20,208      Comcast Corp., Class A(b)      792,962  
  5,004      Fox Corp., Class B(b)      148,619  
  605      Liberty Broadband Corp., Class C(a)(b)      69,962  
  10,823      Sirius XM Holdings, Inc.(b)      66,345  
     

 

 

  
        1,077,888  
     

 

 

  
   Metals & Mining — 0.3%

 

  1,372      Alcoa Corp.(b)      62,536  
  3,584      Barrick Gold Corp.(b)      63,401  
  929      Rio Tinto PLC, Sponsored ADR(b)      56,669  
  2,052      Southern Copper Corp.(b)      102,210  
  1,435      Steel Dynamics, Inc.(b)      94,925  
  4,124      Vale S.A., Sponsored ADR(b)      60,334  
     

 

 

  
        440,075  
     

 

 

  
   Multi-Utilities — 1.0%

 

  7,843      Ameren Corp.(b)      708,693  
  8,877      Public Service Enterprise Group, Inc.(b)      561,737  
     

 

 

  
        1,270,430  
     

 

 

  
   Multiline Retail — 0.6%

 

  1,913      Dollar Tree, Inc.(a)(b)      298,141  
  2,476      Nordstrom, Inc.(b)      52,318  
  2,583      Target Corp.(b)      364,797  
     

 

 

  
        715,256  
     

 

 

  
   Oil, Gas & Consumable Fuels — 4.0%

 

  2,853      Canadian Natural Resources Ltd.(b)      153,149  
  4,575      Cenovus Energy, Inc.      86,971  
  1,218      Cheniere Energy, Inc.(b)      162,030  
  8,770      Chevron Corp.(b)      1,269,721  
  7,993      ConocoPhillips(b)      717,851  
  1,100      Continental Resources, Inc.      71,885  
  3,790      Devon Energy Corp.(b)      208,867  
  1,122      Enbridge, Inc.(b)      47,416  
  1,230      EQT Corp.(b)      42,312  
  18,136      Exxon Mobil Corp.(b)      1,553,167  
  1,235      HF Sinclair Corp.(b)      55,773  
  2,811      Ovintiv, Inc.(b)      124,218  
  1,589      Pioneer Natural Resources Co.(b)      354,474  
  3,117      Suncor Energy, Inc.(b)      109,313  
  1,416      Targa Resources Corp.      84,493  
  1,014      TC Energy Corp.      52,535  
     

 

 

  
        5,094,175  
     

 

 

  
   Personal Products — 0.1%   
  3,526      BellRing Brands, Inc.(a)(b)    $ 87,762  
     

 

 

  
   Pharmaceuticals — 5.0%

 

  1,543      AstraZeneca PLC, Sponsored ADR(b)      101,946  
  9,912      Bristol-Myers Squibb Co.(b)      763,224  
  3,407      Eli Lilly & Co.(b)      1,104,652  
  331      Jazz Pharmaceuticals PLC(a)(b)      51,639  
  11,210      Johnson & Johnson(b)      1,989,887  
  11,368      Merck & Co., Inc.(b)      1,036,420  
  454      Novartis AG, Sponsored ADR(b)      38,377  
  24,942      Pfizer, Inc.(b)      1,307,709  
  1,500      Teva Pharmaceutical Industries Ltd., Sponsored ADR(a)(b)      11,280  
     

 

 

  
        6,405,134  
     

 

 

  
   Professional Services — 0.6%

 

  1,352      Booz Allen Hamilton Holding Corp.      122,167  
  869      CoStar Group, Inc.(a)(b)      52,497  
  1,337      Leidos Holdings, Inc.(b)      134,649  
  342      ManpowerGroup, Inc.(b)      26,132  
  1,879      TransUnion(b)      150,301  
  1,602      Verisk Analytics, Inc.(b)      277,290  
     

 

 

  
        763,036  
     

 

 

  
   Real Estate Management & Development — 0.0%

 

  176      Jones Lang LaSalle, Inc.(a)(b)      30,775  
     

 

 

  
   REITs – Apartments — 1.0%

 

  1,056      American Campus Communities, Inc.(b)      68,080  
  3,564      American Homes 4 Rent, Class A      126,308  
  2,052      Camden Property Trust(b)      275,953  
  956      Essex Property Trust, Inc.(b)      250,004  
  5,655      Invitation Homes, Inc.(b)      201,205  
  1,929      Mid-America Apartment Communities, Inc.(b)      336,938  
     

 

 

  
        1,258,488  
     

 

 

  
   REITs – Diversified — 1.3%

 

  2,485      Crown Castle International Corp.(b)      418,424  
  1,612      Digital Realty Trust, Inc.(b)      209,286  
  6,513      Duke Realty Corp.(b)      357,889  
  723      Gaming & Leisure Properties, Inc.(b)      33,157  
  698      SBA Communications Corp.(b)      223,395  
  10,283      VICI Properties, Inc.(b)      306,331  
  2,146      W.P. Carey, Inc.(b)      177,817  
     

 

 

  
        1,726,299  
     

 

 

  
   REITs – Health Care — 0.0%

 

  2,686      Medical Properties Trust, Inc.(b)      41,015  
     

 

 

  
   REITs – Hotels — 0.0%

 

  2,742      Park Hotels & Resorts, Inc.(b)      37,209  
     

 

 

  
   REITs – Manufactured Homes — 0.1%

 

  1,172      Sun Communities, Inc.      186,770  
     

 

 

  
   REITs – Mortgage — 0.0%

 

  4,312      Annaly Capital Management, Inc.(b)      25,484  
     

 

 

  
   REITs – Office Property — 0.0%

 

  1,073      Kilroy Realty Corp.(b)      56,150  
  370      Orion Office REIT, Inc.(b)      4,055  
     

 

 

  
        60,205  
     

 

 

  
   REITs – Single Tenant — 0.3%

 

  461      National Retail Properties, Inc.(b)      19,823  
  6,052      Realty Income Corp.(b)      413,110  
     

 

 

  
        432,933  
     

 

 

  
   REITs – Storage — 0.1%

 

  984      Extra Space Storage, Inc.(b)      167,398  
     

 

 

  

 

See accompanying notes to financial statements.

 

23  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Gateway Equity Call Premium Fund – (continued)

 

Shares      Description    Value (†)  
   Road & Rail — 1.1%   
  1,376      Canadian Pacific Railway Ltd.    $ 96,100  
  1,579      Norfolk Southern Corp.(b)      358,891  
  778      Old Dominion Freight Line, Inc.(b)      199,386  
  3,407      Union Pacific Corp.(b)      726,645  
  492      XPO Logistics, Inc.(a)(b)      23,694  
     

 

 

  
        1,404,716  
     

 

 

  
   Semiconductors & Semiconductor Equipment — 5.1%

 

  7,100      Advanced Micro Devices, Inc.(a)(b)      542,937  
  3,396      Analog Devices, Inc.(b)      496,122  
  4,696      Applied Materials, Inc.(b)      427,242  
  243      ASML Holding NV, (Registered)(b)      115,639  
  611      Enphase Energy, Inc.(a)(b)      119,292  
  377      First Solar, Inc.(a)(b)      25,685  
  18,608      Intel Corp.(b)      696,125  
  3,945      Marvell Technology, Inc.(b)      171,726  
  10,549      NVIDIA Corp.(b)      1,599,123  
  1,918      NXP Semiconductors NV(b)      283,921  
  3,946      ON Semiconductor Corp.(a)(b)      198,523  
  5,512      QUALCOMM, Inc.(b)      704,103  
  2,520      Teradyne, Inc.(b)      225,666  
  5,824      Texas Instruments, Inc.(b)      894,858  
     

 

 

  
        6,500,962  
     

 

 

  
   Software — 9.0%

 

  2,079      Adobe, Inc.(a)(b)      761,039  
  1,816      Cadence Design Systems, Inc.(a)(b)      272,454  
  1,721      CDK Global, Inc.(b)      94,259  
  604      Check Point Software Technologies Ltd.(a)(b)      73,555  
  3,515      Fortinet, Inc.(a)(b)      198,879  
  30,449      Microsoft Corp.(b)      7,820,217  
  6,787      Oracle Corp.(b)      474,208  
  282      Palo Alto Networks, Inc.(a)(b)      139,291  
  4,547      Salesforce, Inc.(a)(b)      750,437  
  1,189      ServiceNow, Inc.(a)(b)      565,393  
  1,082      Synopsys, Inc.(a)(b)      328,603  
  441      VMware, Inc., Class A(b)      50,265  
  625      Workday, Inc., Class A(a)(b)      87,238  
     

 

 

  
        11,615,838  
     

 

 

  
   Specialty Retail — 1.7%

 

  1,268      Advance Auto Parts, Inc.(b)      219,478  
  346      Burlington Stores, Inc.(a)(b)      47,136  
  933      Dick’s Sporting Goods, Inc.(b)      70,320  
  1,370      Foot Locker, Inc.(b)      34,592  
  5,211      Gap, Inc. (The)(b)      42,939  
  5,156      Home Depot, Inc. (The)(b)      1,414,136  
  607      Ulta Beauty, Inc.(a)(b)      233,986  
  749      Williams-Sonoma, Inc.(b)      83,102  
     

 

 

  
        2,145,689  
     

 

 

  
   Technology Hardware, Storage & Peripherals — 6.8%

 

  62,407      Apple, Inc.(b)      8,532,285  
  1,296      Dell Technologies, Inc., Class C(b)      59,888  
  6,261      HP, Inc.(b)      205,236  
     

 

 

  
        8,797,409  
     

 

 

  
   Textiles, Apparel & Luxury Goods — 0.7%

 

  579      Carter’s, Inc.(b)      40,808  
  374      Lululemon Athletica, Inc.(a)(b)      101,956  
  6,416      NIKE, Inc., Class B(b)      655,715  
  800      Skechers U.S.A., Inc., Class A(a)(b)      28,464  
  2,600      Under Armour, Inc., Class C(a)(b)      19,708  
     

 

 

  
        846,651  
     

 

 

  
   Tobacco — 1.0%   
  9,495      Altria Group, Inc.(b)    $ 396,606  
  1,544      British American Tobacco PLC, Sponsored ADR(b)      66,253  
  7,977      Philip Morris International, Inc.(b)      787,649  
     

 

 

  
        1,250,508  
     

 

 

  
   Water Utilities — 0.3%

 

  2,235      American Water Works Co., Inc.(b)      332,501  
     

 

 

  
   Wireless Telecommunication Services — 0.2%

 

  3,935      America Movil SAB de CV, Series L, ADR(b)      80,392  
  8,169      Vodafone Group PLC, Sponsored ADR(b)      127,273  
     

 

 

  
        207,665  
     

 

 

  
   Total Common Stocks
(Identified Cost $102,581,379)		      126,864,300  
     

 

 

  
     
Principal
Amount		                
  Short-Term Investments — 6.4%  
$ 8,166,855      Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $8,166,934 on 7/01/2022 collateralized by $8,641,200 U.S. Treasury Note, 2.250% due 8/15/2027 valued at $8,330,254 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $8,166,855)      8,166,855  
     

 

 

  
     
   Total Investments — 105.0%
(Identified Cost $110,748,234)		      135,031,155  
   Other assets less liabilities — (5.0)%      (6,427,598 ) 
     

 

 

  
   Net Assets — 100.0%    $ 128,603,557  
     

 

 

  

 

Written Options — (1.2%)

 

Description   Expiration
Date		     Exercise
Price		     Contracts     Notional
Amount		     Premiums
(Received)		     Value (†)  
Index Options — (1.2%)

 

S&P 500® Index, Call     7/15/2022       3,825       (37 )    $ (14,005,906 )    $ (354,472 )    $ (208,680 ) 
S&P 500® Index, Call     7/15/2022       3,850       (37 )      (14,005,906 )      (375,720 )      (168,165 ) 
S&P 500® Index, Call     7/15/2022       3,900       (37 )      (14,005,906 )      (294,209 )      (104,895 ) 
S&P 500® Index, Call     7/15/2022       3,975       (37 )      (14,005,906 )      (309,834 )      (46,250 ) 
S&P 500® Index, Call     7/15/2022       4,100       (37 )      (14,005,906 )      (317,929 )      (10,453 ) 
S&P 500® Index, Call     7/15/2022       4,200       (36 )      (13,627,368 )      (328,950 )      (3,240 ) 
S&P 500® Index, Call     7/29/2022       3,725       (37 )      (14,005,906 )      (422,252 )      (544,455 ) 
S&P 500® Index, Call     7/29/2022       3,850       (37 )      (14,005,906 )      (399,443 )      (287,675 ) 
S&P 500® Index, Call     8/19/2022       4,000       (37 )      (14,005,906 )      (447,906 )      (172,975 ) 
         

 

 

    

 

 

  

Total

           $ (3,250,715 )    $ (1,546,788 ) 
         

 

 

    

 

 

  

 

  (†)      See Note 2 of Notes to Financial Statements.
  (a)      Non-income producing security.
  (b)      Security (or a portion thereof) has been pledged as collateral for open derivative contracts.
  

 

See accompanying notes to financial statements.

 

|  24

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Gateway Equity Call Premium Fund – (continued)

 

     
  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

 

Industry Summary at June 30, 2022 (Unaudited)

 

Software

      9.0 % 

Technology Hardware, Storage & Peripherals

      6.8  

Interactive Media & Services

      5.4  

Semiconductors & Semiconductor Equipment

      5.1  

Pharmaceuticals

      5.0  

IT Services

      4.1  

Oil, Gas & Consumable Fuels

      4.0  

Banks

      3.8  

Health Care Providers & Services

      3.5  

Internet & Direct Marketing Retail

      3.1  

Capital Markets

      2.7  

Health Care Equipment & Supplies

      2.4  

Biotechnology

      2.1  

Automobiles

      2.1  

Beverages

      2.0  

Insurance

      2.0  

Other Investments, less than 2% each

      35.5  

Short-Term Investments

      6.4  
  

 

 

  

Total Investments

      105.0  

Other assets less liabilities (including open written options)

      (5.0 ) 
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

25  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Mirova Global Green Bond Fund

 

Principal
Amount (‡)		      Description    Value (†)  
  Bonds and Notes — 90.5% of Net Assets  
   Canada — 2.1%

 

  1,000,000      Province of Ontario Canada, 1.950%, 1/27/2023, (CAD)(a)    $ 773,252  
  50,000      Province of Quebec Canada, 2.600%, 7/06/2025, (CAD)(a)      37,973  
     

 

 

  
        811,225  
     

 

 

  
   Chile — 1.9%

 

  500,000      Chile Government International Bond, 1.250%, 1/29/2040, (EUR)(a)      341,862  
  500,000      Chile Government International Bond, 3.500%, 1/25/2050(a)      381,935  
     

 

 

  
        723,797  
     

 

 

  
   Denmark — 2.9%

 

  500,000      Orsted A/S, 1.500%, 11/26/2029, (EUR)(a)      481,846  
  200,000      Orsted A/S, (fixed rate to 9/09/2027, variable rate thereafter), 1.750%, 12/09/3019, (EUR)(a)      176,580  
  500,000      Vestas Wind Systems Finance BV, EMTN, 1.500%, 6/15/2029, (EUR)(a)      475,419  
     

 

 

  
        1,133,845  
     

 

 

  
   Finland — 0.9%

 

  500,000      Citycon OYJ, (fixed rate to 11/24/2024, variable rate thereafter), 4.496%, (EUR)(a)(b)      356,303  
     

 

 

  
   France — 7.8%

 

  400,000      Altarea SCA, 1.750%, 1/16/2030, (EUR)(a)      296,803  
  400,000      Covivio, 1.125%, 9/17/2031, (EUR)(a)      323,374  
  200,000      Derichebourg S.A., 2.250%, 7/15/2028, (EUR)(a)      169,873  
  200,000      Faurecia SE, 2.375%, 6/15/2029, (EUR)(a)      146,985  
  700,000      France Government Bond OAT, 1.750%, 6/25/2039, 144A, (EUR)      683,137  
  100,000      Getlink SE, 3.500%, 10/30/2025, (EUR)(a)      99,913  
  600,000      ICADE, 1.500%, 9/13/2027, (EUR)(a)      572,287  
  300,000      Seche Environnement S.A., 2.250%, 11/15/2028, (EUR)      248,366  
  600,000      Societe du Grand Paris EPIC, EMTN, 1.700%, 5/25/2050, (EUR)(a)      503,547  
     

 

 

  
        3,044,285  
     

 

 

  
   Germany — 9.9%

 

  700,000      BayWa AG, EMTN, 3.125%, 6/26/2024, (EUR)(a)      732,399  
  800,000      Bundesrepublik Deutschland Bundesanleihe, Series G, 0.829%-0.860%, 8/15/2030, (EUR)(a)(c)      759,744  
  1,000,000      Bundesrepublik Deutschland Bundesanleihe, Series G, 1.050%-1.051%, 8/15/2050, (EUR)(a)(c)      672,398  
  500,000      E.ON SE, EMTN, 0.350%, 2/28/2030, (EUR)(a)      424,213  
  500,000      EnBW Energie Baden-Wuerttemberg AG, (fixed rate to 3/30/2026, variable rate thereafter), 1.875%, 6/29/2080, (EUR)(a)      441,215  
  400,000      Evonik Industries AG, (fixed rate to 9/02/2026, variable rate thereafter), 1.375%, 9/02/2081, (EUR)(a)      328,926  
  500,000      Landesbank Baden-Wuerttemberg, Series 809, MTN, 0.375%, 7/29/2026, (EUR)(a)      473,741  
     

 

 

  
        3,832,636  
     

 

 

  
   Hungary — 1.3%

 

  700,000      Hungary Government International Bond, 1.750%, 6/05/2035, (EUR)(a)      517,603  
     

 

 

  
   Indonesia — 2.6%

 

  500,000      Perusahaan Penerbit SBSN Indonesia III, 3.750%, 3/01/2023(a)      501,136  
  500,000      Perusahaan Penerbit SBSN Indonesia III, MTN, 3.900%, 8/20/2024(a)      500,955  
     

 

 

  
        1,002,091  
     

 

 

  
   Ireland — 0.6%

 

  300,000      ESB Finance DAC, EMTN, 1.000%, 7/19/2034, (EUR)(a)    $ 248,192  
     

 

 

  
   Italy — 5.3%

 

  400,000      A2A SpA, EMTN, 1.000%, 7/16/2029, (EUR)(a)      352,714  
  600,000      Assicurazioni Generali SpA, EMTN, 2.124%, 10/01/2030, (EUR)(a)      496,276  
  300,000      ERG SpA, EMTN, 0.500%, 9/11/2027, (EUR)(a)      275,392  
  1,300,000      Italy Buoni Poliennali Del Tesoro, 1.500%, 4/30/2045, 144A, (EUR)(a)      937,706  
     

 

 

  
        2,062,088  
     

 

 

  
   Japan — 1.1%

 

  500,000      Denso Corp., 1.239%, 9/16/2026      446,009  
     

 

 

  
   Korea — 4.5%

 

  400,000      Kia Corp., 1.750%, 10/16/2026(a)      361,408  
  400,000      Kookmin Bank, GMTN, 4.500%, 2/01/2029(a)      394,192  
  600,000      Korea International Bond, Zero Coupon, 0.000%, 10/15/2026, (EUR)(a)(d)      581,260  
  400,000      Korea Water Resources Corp., EMTN, 3.875%, 5/15/2023(a)      402,772  
     

 

 

  
        1,739,632  
     

 

 

  
   Lithuania — 2.2%

 

  500,000      AB Ignitis Grupe, EMTN, 1.875%, 7/10/2028, (EUR)(a)      472,177  
  400,000      AB Ignitis Grupe, EMTN, 2.000%, 7/14/2027, (EUR)(a)      388,856  
     

 

 

  
        861,033  
     

 

 

  
   Mexico — 1.9%

 

  800,000      Mexico Government International Bond, 1.350%, 9/18/2027, (EUR)(a)      737,757  
     

 

 

  
   Netherlands — 5.6%

 

  200,000      ABB Finance BV, EMTN, Zero Coupon, 0.282%, 1/19/2030, (EUR)(a)(d)      168,543  
  400,000      CTP NV, EMTN, 2.125%, 10/01/2025, (EUR)(a)      369,521  
  400,000      de Volksbank NV, EMTN, 0.375%, 3/03/2028, (EUR)(a)      345,279  
  600,000      de Volksbank NV, EMTN, (fixed rate to 10/22/2025, variable rate thereafter), 1.750%, 10/22/2030, (EUR)(a)      575,394  
  500,000      Koninklijke Philips NV, EMTN, 2.125%, 11/05/2029, (EUR)(a)      489,488  
  150,000      TenneT Holding BV, EMTN, 1.250%, 10/24/2033, (EUR)(a)      128,050  
  100,000      TenneT Holding BV, EMTN, 1.875%, 6/13/2036, (EUR)(a)      87,025  
     

 

 

  
        2,163,300  
     

 

 

  
   Portugal — 0.9%

 

  400,000      Ren Finance BV, EMTN, 0.500%, 4/16/2029, (EUR)(a)      344,898  
     

 

 

  
   Singapore — 1.7%

 

  700,000      Vena Energy Capital Pte Ltd., EMTN, 3.133%, 2/26/2025(a)      667,240  
     

 

 

  
   Spain — 6.8%

 

  400,000      Banco Bilbao Vizcaya Argentaria S.A., 1.000%, 6/21/2026, (EUR)(a)      389,503  
  500,000      Bankinter S.A., 0.625%, 10/06/2027, (EUR)(a)      445,907  
  400,000      Iberdrola Finanzas S.A., EMTN, 1.375%, 3/11/2032, (EUR)(a)      363,424  
  500,000      Iberdrola International BV, (fixed rate to 2/22/2023, variable rate thereafter), 1.875%, (EUR)(a)(b)      512,683  
  900,000      Spain Government Bond, 1.000%, 7/30/2042, 144A, (EUR)(a)      672,549  

 

See accompanying notes to financial statements.

 

|  26

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Mirova Global Green Bond Fund – (continued)

 

Principal
Amount (‡)		      Description    Value (†)  
   Spain — continued

 

  300,000      Telefonica Europe BV, (fixed rate to 2/05/2027, variable rate thereafter), 2.502%, (EUR)(a)(b)    $ 256,617  
     

 

 

  
        2,640,683  
     

 

 

  
   Supranationals — 9.2%

 

  3,700,000      European Investment Bank, 2.375%, 5/24/2027(a)      3,570,833  
     

 

 

  
   Sweden — 2.1%

 

  500,000      Vattenfall AB, EMTN, 0.125%, 2/12/2029, (EUR)(a)      443,318  
  400,000      Volvo Car AB, EMTN, 2.500%, 10/07/2027, (EUR)(a)      363,166  
     

 

 

  
        806,484  
     

 

 

  
   United Kingdom — 7.7%

 

  500,000      Anglian Water Services Financing PLC, EMTN, 1.625%, 8/10/2025, (GBP)(a)      581,298  
  500,000      SSE PLC, EMTN, 1.375%, 9/04/2027, (EUR)(a)      482,356  
  400,000      Thames Water Utilities Finance PLC, 0.875%, 1/31/2028, (EUR)(a)      364,448  
  1,500,000      United Kingdom Gilt, 0.875%, 7/31/2033, (GBP)(a)      1,561,262  
     

 

 

  
        2,989,364  
     

 

 

  
   United States — 11.5%

 

  500,000      Air Products & Chemicals, Inc., 2.050%, 5/15/2030(a)      432,174  
  600,000      Digital Dutch Finco BV, 1.500%, 3/15/2030, (EUR)(a)      509,090  
  600,000      Digital Euro Finco LLC, 2.500%, 1/16/2026, (EUR)(a)      604,582  
  300,000      Digital Intrepid Holding BV, 0.625%, 7/15/2031, (EUR)(a)      221,484  
  200,000      DTE Electric Co., 3.950%, 3/01/2049(a)      179,267  
  500,000      Equinix, Inc., 0.250%, 3/15/2027, (EUR)(a)      453,246  
  400,000      Ford Motor Co., 3.250%, 2/12/2032(a)      299,160  
  400,000      Southern Power Co., 4.150%, 12/01/2025(a)      400,397  
  200,000      Thermo Fisher Scientific, Inc., 4.100%, 8/15/2047(a)      187,035  
  700,000      Verizon Communications, Inc., 3.875%, 2/08/2029(a)      677,241  
  600,000      Wabtec Transportation Netherlands BV, 1.250%, 12/03/2027, (EUR)(a)      513,156  
     

 

 

  
        4,476,832  
     

 

 

  
   Total Bonds and Notes
(Identified Cost $42,232,948)		      35,176,130  
     

 

 

  
     
  Short-Term Investments — 3.8%  
  1,488,295      Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $1,488,310 on 7/01/2022 collateralized by $1,511,300 U.S. Treasury Note, 3.250% due 6/30/2027 valued at 1,518,148 including accrued interest (Note 2 of Notes to Financial Statements) (Identified Cost $1,488,295)      1,488,295  
     

 

 

  
     
   Total Investments — 94.3%
(Identified Cost $43,721,243)		      36,664,425  
   Other assets less liabilities — 5.7%      2,204,611  
     

 

 

  
   Net Assets — 100.0%    $ 38,869,036  
     

 

 

  
     
  (‡)      Principal Amount stated in U.S. dollars unless otherwise noted.

 

  (†)      See Note 2 of Notes to Financial Statements.

 

  (a)      Security (or a portion thereof) has been designated to cover the Fund’s obligations under open derivative contracts.

 

  (b)      Perpetual bond with no specified maturity date.

 

  (c)      Interest rate represents annualized yield at time of purchase; not a coupon rate. The Fund’s investment in this security is comprised of various lots with differing annualized yields.

 

  (d)      Interest rate represents annualized yield at time of purchase; not a coupon rate.

 

     
  144A      All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2022, the value of Rule 144A holdings amounted to $2,293,392 or 5.9% of net assets.

 

  EMTN      Euro Medium Term Note

 

  GMTN      Global Medium Term Note

 

  MTN      Medium Term Note

 

     
  CAD      Canadian Dollar

 

  EUR      Euro

 

  GBP      British Pound

 

At June 30, 2022, open long futures contracts were as follows:

 

Financial Futures   Expiration
Date		     Contracts     Notional
Amount		     Value     Unrealized
Appreciation
(Depreciation)		  

German Euro Bund

     9/08/2022       2     $ 314,658     $ 311,828     $ (2,830 ) 

Euro-Buxl® 30 Year Bond

     9/08/2022       4       712,187       685,611       (26,576 ) 
         

 

 

  

Total

 

   $ (29,406 ) 
         

 

 

  

At June 30, 2022, open short futures contracts were as follows:

 

Financial and
Currency Futures		   Expiration
Date		     Contracts     Notional
Amount		     Value     Unrealized
Appreciation
(Depreciation)		  

10 Year U.S. Treasury Note

     9/21/2022       21     $ 2,442,281     $ 2,489,156     $ (46,875 ) 

British Pound

     9/19/2022       25       1,971,094       1,906,094       65,000  

Canadian Dollar

     9/20/2022       11       862,466       854,700       7,766  

Euro

     9/19/2022       177       23,851,414       23,315,325       536,089  
         

 

 

  

Total

 

   $ 561,980  
         

 

 

  

Industry Summary at June 30, 2022 (Unaudited)

 

Government National

      20.2 % 

Utility-Electric

      15.1  

Industrial

      13.5  

Financial

      9.4  

Special Purpose

      9.2  

Supra-National

      9.2  

Bank

      6.8  

Government Regional

      3.4  

Telephone

      2.4  

Government Agency

      1.1  

Transportation-Non Rail

      0.2  

Short-Term Investments

      3.8  
  

 

 

  

Total Investments

      94.3  

Other assets less liabilities (including futures contracts)

      5.7  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

Currency Exposure Summary at June 30, 2022 (Unaudited)

 

Euro

      58.7 % 

United States Dollar

      28.0  

British Pound

      5.5  

Canadian Dollar

      2.1  
  

 

 

  

Total Investments

      94.3  

Other assets less liabilities (including futures contracts)

      5.7  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

27  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Mirova Global Sustainable Equity Fund

 

Shares      Description    Value (†)  
  Common Stocks — 97.6% of Net Assets  
   Belgium — 1.6%

 

  253,828      KBC Group NV    $ 14,280,611  
     

 

 

  
   Brazil — 1.5%

 

  21,137      MercadoLibre, Inc.(a)      13,461,521  
     

 

 

  
   Denmark — 8.4%

 

  319,259      Novo Nordisk A/S, Class B      35,406,559  
  265,989      Orsted A/S, 144A      28,014,990  
  624,412      Vestas Wind Systems A/S      13,276,245  
     

 

 

  
        76,697,794  
     

 

 

  
   France — 2.9%

 

  1,059,927      Credit Agricole S.A.      9,771,424  
  97,023      EssilorLuxottica S.A.      14,709,907  
  80,302      Orpea S.A.      1,969,930  
     

 

 

  
        26,451,261  
     

 

 

  
   Germany — 5.4%

 

  230,924      Mercedes-Benz Group AG, (Registered)      13,411,679  
  113,804      SAP SE      10,373,280  
  231,528      Symrise AG      25,251,653  
     

 

 

  
        49,036,612  
     

 

 

  
   Hong Kong — 4.5%

 

  2,390,811      AIA Group Ltd.      26,123,350  
  1,223,991      Prudential PLC      15,225,507  
     

 

 

  
        41,348,857  
     

 

 

  
   Japan — 5.3%

 

  889,400      Sekisui House Ltd.      15,613,722  
  641,330      Takeda Pharmaceutical Co. Ltd.      18,013,888  
  468,300      Terumo Corp.      14,166,567  
     

 

 

  
        47,794,177  
     

 

 

  
   Netherlands — 3.1%

 

  10,633      Adyen NV, 144A(a)      15,344,822  
  27,851      ASML Holding NV      13,157,869  
     

 

 

  
        28,502,691  
     

 

 

  
   Spain — 3.1%

 

  2,675,781      Iberdrola S.A.      27,858,635  
     

 

 

  
   Taiwan — 2.5%

 

  275,152      Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR      22,493,676  
     

 

 

  
   United Kingdom — 2.7%

 

  5,098,814      Legal & General Group PLC      14,906,755  
  203,081      Unilever PLC      9,224,009  
     

 

 

  
        24,130,764  
     

 

 

  
   United States — 56.6%

 

  74,949      Adobe, Inc.(a)      27,435,831  
  94,763      American Water Works Co., Inc.      14,097,892  
  232,375      Aptiv PLC(a)      20,697,641  
  201,197      Ball Corp.      13,836,318  
  77,690      Bright Horizons Family Solutions, Inc.(a)      6,566,359  
  131,367      Danaher Corp.      33,304,162  
  714,791      eBay, Inc.      29,785,341  
  201,439      Ecolab, Inc.      30,973,261  
  95,284      Eli Lilly & Co.      30,893,931  
  44,373      Estee Lauder Cos., Inc. (The), Class A      11,300,472  
  41,328      Intuitive Surgical, Inc.(a)      8,294,943  
  137,930      Mastercard, Inc., Class A      43,514,156  
  169,021      Microsoft Corp.      43,409,663  
  291,220      NextEra Energy, Inc.      22,557,901  
  109,795      NVIDIA Corp.      16,643,824  
  72,299      Roper Technologies, Inc.      28,532,800  
   United States — continued

 

  74,487      Signature Bank    $ 13,348,815  
  293,215      Sunrun, Inc.(a)      6,849,502  
  9,262      SVB Financial Group(a)      3,658,397  
  82,645      Thermo Fisher Scientific, Inc.      44,899,376  
  309,382      Verizon Communications, Inc.      15,701,137  
  139,990      Visa, Inc., Class A      27,562,631  
  73,137      Watts Water Technologies, Inc., Series A      8,984,149  
  147,032      Xylem, Inc.      11,494,962  
     

 

 

  
        514,343,464  
     

 

 

  
   Total Common Stocks
(Identified Cost $1,027,238,468)		      886,400,063  
     

 

 

  
     
Principal
Amount		                
  Short-Term Investments — 1.7%  
$ 15,415,941      Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $15,416,091 on 7/01/2022 collateralized by $3,018,500 U.S. Treasury Note, 2.250% due 8/15/2027 valued at $2,909,882; $12,756,600 U.S. Treasury Note, 3.250% due 6/30/2027 valued at $12,814,400 including accrued interest (Note 2 of Notes to Financial Statements)
(Identified Cost $15,415,941)		      15,415,941  
     

 

 

  
     
   Total Investments — 99.3%
(Identified Cost $1,042,654,409)		      901,816,004  
   Other assets less liabilities — 0.7%      6,205,551  
     

 

 

  
   Net Assets — 100.0%    $ 908,021,555  
     

 

 

  
     
  (†)      See Note 2 of Notes to Financial Statements.

 

  (a)      Non-income producing security.

 

     
  144A      All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2022, the value of Rule 144A holdings amounted to $43,359,812 or 4.8% of net assets.

 

  ADR      An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.

 

 

See accompanying notes to financial statements.

 

|  28

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Mirova Global Sustainable Equity Fund – (continued)

 

Industry Summary at June 30, 2022 (Unaudited)

 

Software

      12.0 % 

IT Services

      9.5  

Pharmaceuticals

      9.3  

Electric Utilities

      8.7  

Life Sciences Tools & Services

      8.6  

Insurance

      6.2  

Chemicals

      6.2  

Semiconductors & Semiconductor Equipment

      5.7  

Internet & Direct Marketing Retail

      4.8  

Banks

      4.6  

Health Care Equipment & Supplies

      2.5  

Auto Components

      2.3  

Machinery

      2.3  

Personal Products

      2.2  

Electrical Equipment

      2.2  

Other Investments, less than 2% each

      10.5  

Short-Term Investments

      1.7  
  

 

 

  

Total Investments

      99.3  

Other assets less liabilities

      0.7  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

Currency Exposure Summary at June 30, 2022 (Unaudited)

 

United States Dollar

      62.3 % 

Euro

      17.1  

Danish Krone

      8.4  

Japanese Yen

      5.3  

British Pound

      3.3  

Hong Kong Dollar

      2.9  
  

 

 

  

Total Investments

      99.3  

Other assets less liabilities

      0.7  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

29  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Mirova International Sustainable Equity Fund

 

Shares      Description    Value (†)  
  Common Stocks — 96.9% of Net Assets  
   Australia — 1.1%

 

  90,239      Stockland    $ 225,307  
     

 

 

  
   Belgium — 5.2%

 

  14,229      KBC Group NV      800,537  
  5,997      Umicore S.A.      210,219  
     

 

 

  
        1,010,756  
     

 

 

  
   Brazil — 0.9%

 

  263      MercadoLibre, Inc.(a)      167,497  
     

 

 

  
   Denmark — 11.9%

 

  9,824      Novo Nordisk A/S, Class B      1,089,504  
  6,752      Orsted A/S, 144A      711,147  
  24,279      Vestas Wind Systems A/S      516,220  
     

 

 

  
        2,316,871  
     

 

 

  
   France — 12.4%

 

  2,395      Air Liquide S.A.      322,374  
  34,634      Credit Agricole S.A.      319,289  
  10,312      Dassault Systemes SE      381,965  
  2,296      EssilorLuxottica S.A.      348,102  
  1,063      L’Oreal S.A.      369,079  
  4,419      Orpea S.A.      108,405  
  3,035      Sanofi      306,068  
  6,739      Worldline S.A., 144A(a)      251,361  
     

 

 

  
        2,406,643  
     

 

 

  
   Germany — 6.2%

 

  5,415      Mercedes-Benz Group AG, (Registered)      314,494  
  5,914      SAP SE      539,063  
  3,214      Symrise AG      350,536  
     

 

 

  
        1,204,093  
     

 

 

  
   Hong Kong — 8.5%

 

  98,395      AIA Group Ltd.      1,075,120  
  46,748      Prudential PLC      581,509  
     

 

 

  
        1,656,629  
     

 

 

  
   Ireland — 4.0%

 

  7,689      Kingspan Group PLC      462,348  
  9,154      Smurfit Kappa Group PLC      308,692  
     

 

 

  
        771,040  
     

 

 

  
   Japan — 13.5%

 

  4,100      Kao Corp.      166,253  
  47,700      Kubota Corp.      714,837  
  21,800      Sekisui House Ltd.      382,706  
  1,700      Shimano, Inc.      286,377  
  17,738      Takeda Pharmaceutical Co. Ltd.      498,231  
  14,200      Terumo Corp.      429,565  
  4,300      West Japan Railway Co.      158,190  
     

 

 

  
        2,636,159  
     

 

 

  
   Netherlands — 7.6%

 

  431      Adyen NV, 144A(a)      621,990  
  1,836      ASML Holding NV      867,396  
     

 

 

  
        1,489,386  
     

 

 

  
   Norway — 0.6%

 

  8,384      Telenor ASA      112,037  
     

 

 

  
   Spain — 3.7%

 

  68,554      Iberdrola S.A.      713,743  
     

 

 

  
   Switzerland — 2.5%

 

  1,029      Geberit AG, (Registered)      495,055  
     

 

 

  
   Taiwan — 4.4%

 

  10,610      Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR      867,368  
     

 

 

  
   United Kingdom — 14.4%

 

  6,771      Croda International PLC    $ 535,193  
  20,924      Halma PLC      513,729  
  6,813      Johnson Matthey PLC      160,655  
  31,456      Land Securities Group PLC      255,264  
  255,581      Legal & General Group PLC      747,210  
  2,058      Spirax-Sarco Engineering PLC      248,213  
  7,501      Unilever PLC      340,698  
     

 

 

  
        2,800,962  
     

 

 

  
   Total Common Stocks
(Identified Cost $21,945,960)		      18,873,546  
     

 

 

  
     
Principal
Amount		      Description    Value (†)  
  Short-Term Investments — 1.6%  
$ 313,515      Tri-Party Repurchase Agreement with Fixed Income Clearing Corporation, dated 6/30/2022 at 0.350% to be repurchased at $313,518 on 7/01/2022 collateralized by $318,400 U.S. Treasury Note, 3.250% due 6/30/2027 valued at $319,843 including accrued interest (Note 2 of Notes to Financial Statements)
(Identified Cost $313,515)		      313,515  
     

 

 

  
     
   Total Investments — 98.5%
(Identified Cost $22,259,475)		      19,187,061  
   Other assets less liabilities — 1.5%      284,525  
     

 

 

  
   Net Assets — 100.0%    $ 19,471,586  
     

 

 

  
     
  (†)      See Note 2 of Notes to Financial Statements.

 

  (a)      Non-income producing security.

 

  
  144A      All or a portion of these securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2022, the value of Rule 144A holdings amounted to $1,584,498 or 8.1% of net assets.

 

  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.

 

Industry Summary at June 30, 2022 (Unaudited)

 

Insurance

      12.3 % 

Pharmaceuticals

      9.7  

Semiconductors & Semiconductor Equipment

      8.8  

Chemicals

      8.1  

Electric Utilities

      7.4  

Banks

      5.7  

Machinery

      5.0  

Building Products

      4.9  

Software

      4.8  

Personal Products

      4.5  

IT Services

      4.5  

Electrical Equipment

      2.6  

Electronic Equipment, Instruments & Components

      2.6  

REITs - Diversified

      2.4  

Health Care Equipment & Supplies

      2.2  

Household Durables

      2.0  

Other Investments, less than 2% each

      9.4  

Short-Term Investments

      1.6  
  

 

 

  

Total Investments

      98.5  

Other assets less liabilities

      1.5  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

|  30

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Mirova International Sustainable Equity Fund – (continued)

 

Currency Exposure Summary at June 30, 2022 (Unaudited)

 

Euro

      40.9 % 

British Pound

      15.6  

Japanese Yen

      13.5  

Danish Krone

      11.9  

United States Dollar

      6.9  

Hong Kong Dollar

      5.5  

Swiss Franc

      2.5  

Other, less than 2% each

      1.7  
  

 

 

  

Total Investments

      98.5  

Other assets less liabilities

      1.5  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

31  |

Portfolio of Investments – as of June 30, 2022 (Unaudited)

Mirova U.S. Sustainable Equity Fund

 

Shares      Description    Value (†)  
  Common Stocks — 96.1% of Net Assets  
   Auto Components — 2.0%

 

  831      Aptiv PLC(a)    $ 74,017  
     

 

 

  
   Banks — 3.3%

 

  509      Signature Bank      91,218  
  76      SVB Financial Group(a)      30,019  
     

 

 

  
        121,237  
     

 

 

  
   Chemicals — 3.4%

 

  810      Ecolab, Inc.      124,546  
     

 

 

  
   Commercial Services & Supplies — 4.4%

 

  1,061      Waste Management, Inc.      162,312  
     

 

 

  
   Communications Equipment — 0.9%

 

  813      Cisco Systems, Inc.      34,666  
     

 

 

  
   Containers & Packaging — 1.9%

 

  1,012      Ball Corp.      69,595  
     

 

 

  
   Diversified Consumer Services — 1.2%

 

  504      Bright Horizons Family Solutions, Inc.(a)      42,598  
     

 

 

  
   Diversified Telecommunication Services — 2.5%

 

  1,825      Verizon Communications, Inc.      92,619  
     

 

 

  
   Electric Utilities — 5.0%

 

  2,378      NextEra Energy, Inc.      184,200  
     

 

 

  
   Electrical Equipment — 0.9%

 

  1,344      Sunrun, Inc.(a)      31,396  
     

 

 

  
   Electronic Equipment, Instruments & Components — 1.3%

 

  797      Trimble, Inc.(a)      46,409  
     

 

 

  
   Health Care Equipment & Supplies — 2.4%

 

  446      Intuitive Surgical, Inc.(a)      89,517  
     

 

 

  
   Household Products — 1.6%

 

  717      Colgate-Palmolive Co.      57,460  
     

 

 

  
   Internet & Direct Marketing Retail — 3.5%

 

  3,085      eBay, Inc.      128,552  
     

 

 

  
   IT Services — 8.9%

 

  179      Accenture PLC, Class A      49,699  
  605      Mastercard, Inc., Class A      190,866  
  445      Visa, Inc., Class A      87,616  
     

 

 

  
        328,181  
     

 

 

  
   Life Sciences Tools & Services — 11.5%

 

  729      Danaher Corp.      184,816  
  441      Thermo Fisher Scientific, Inc.      239,587  
     

 

 

  
        424,403  
     

 

 

  
   Machinery — 5.4%

 

  683      Watts Water Technologies, Inc., Series A      83,900  
  1,481      Xylem, Inc.      115,784  
     

 

 

  
        199,684  
     

 

 

  
   Personal Products — 3.0%

 

  434      Estee Lauder Cos., Inc. (The), Class A      110,527  
     

 

 

  
   Pharmaceuticals — 4.5%

 

  509      Eli Lilly & Co.      165,033  
     

 

 

  
   Semiconductors & Semiconductor Equipment — 7.7%

 

  944      First Solar, Inc.(a)      64,315  
  736      NVIDIA Corp.      111,570  
  1,326      Taiwan Semiconductor Manufacturing Co. Ltd., Sponsored ADR      108,400  
     

 

 

  
        284,285  
     

 

 

  
   Software — 16.6%

 

  362      Adobe, Inc.(a)      132,514  
  389      Avalara, Inc.(a)      27,463  
   Software — continued

 

  1,131      Microsoft Corp.    $ 290,475  
  404      Roper Technologies, Inc.      159,438  
     

 

 

  
        609,890  
     

 

 

  
   Water Utilities — 4.2%

 

  1,037      American Water Works Co., Inc.      154,275  
     

 

 

  
   Total Common Stocks
(Identified Cost $3,766,202)		      3,535,402  
     

 

 

  
     
   Total Investments — 96.1%
(Identified Cost $3,766,202)		      3,535,402  
   Other assets less liabilities — 3.9%      143,619  
     

 

 

  
   Net Assets — 100.0%    $ 3,679,021  
     

 

 

  
     
  (†)      See Note 2 of Notes to Financial Statements.

 

  (a)      Non-income producing security.

 

     
  ADR      An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. The values of ADRs may be significantly influenced by trading on exchanges not located in the United States.

 

Industry Summary at June 30, 2022 (Unaudited)

 

Software

      16.6 % 

Life Sciences Tools & Services

      11.5  

IT Services

      8.9  

Semiconductors & Semiconductor Equipment

      7.7  

Machinery

      5.4  

Electric Utilities

      5.0  

Pharmaceuticals

      4.5  

Commercial Services & Supplies

      4.4  

Water Utilities

      4.2  

Internet & Direct Marketing Retail

      3.5  

Chemicals

      3.4  

Banks

      3.3  

Personal Products

      3.0  

Diversified Telecommunication Services

      2.5  

Health Care Equipment & Supplies

      2.4  

Auto Components

      2.0  

Other Investments, less than 2% each

      7.8  
  

 

 

  

Total Investments

      96.1  

Other assets less liabilities

      3.9  
  

 

 

  

Net Assets

      100.0 % 
  

 

 

  

 

See accompanying notes to financial statements.

 

|  32

Statements of Assets and Liabilities

 

June 30, 2022 (Unaudited)

 

     Gateway
Fund		      Gateway Equity
Call Premium
Fund		      Mirova Global
Green Bond
Fund		  

ASSETS

 

Investments at cost

    $ 3,724,497,747      $ 110,748,234      $ 43,721,243  

Net unrealized appreciation (depreciation)

      3,437,132,990        24,282,921        (7,056,818 ) 
  

 

 

     

 

 

     

 

 

  

Investments at value

      7,161,630,737        135,031,155        36,664,425  

Cash

      15,006,271        3,792        80,009  

Due from brokers (including variation margin on futures contracts) (Note 2)

      —        —        277,848  

Foreign currency at value (identified cost $0, $0 and $252,769, respectively)

      —        —        210,495  

Receivable for Fund shares sold

      9,975,246        172,011        1,212  

Receivable for securities sold

      —        —        935,483  

Dividends and interest receivable

      4,396,854        103,032        254,578  

Tax reclaims receivable

      —        23        —  

Unrealized appreciation on futures contracts (Note 2)

      —        —        608,855  

Prepaid expenses (Note 8)

      1,058        17        5  
  

 

 

     

 

 

     

 

 

  

TOTAL ASSETS

      7,191,010,166        135,310,030        39,032,910  
  

 

 

     

 

 

     

 

 

  

LIABILITIES

 

Options written, at value (premiums received $178,742,319, $3,250,715 and $0, respectively) (Note 2)

      93,978,822        1,546,788        —  

Payable for securities purchased

      —        5,001,777        —  

Payable for Fund shares redeemed

      16,560,595        4,619        19,023  

Unrealized depreciation on futures contracts (Note 2)

      —        —        76,281  

Management fees payable (Note 6)

      3,449,733        46,088        2,969  

Deferred Trustees’ fees (Note 6)

      1,121,693        51,716        19,214  

Administrative fees payable (Note 6)

      273,727        4,559        1,492  

Payable to distributor (Note 6d)

      41,486        525        388  

Audit and tax services fees payable

      31,451        29,571        25,470  

Other accounts payable and accrued expenses

      490,930        20,830        19,037  
  

 

 

     

 

 

     

 

 

  

TOTAL LIABILITIES

      115,948,437        6,706,473        163,874  
  

 

 

     

 

 

     

 

 

  

NET ASSETS

    $ 7,075,061,729      $ 128,603,557      $ 38,869,036  
  

 

 

     

 

 

     

 

 

  

NET ASSETS CONSIST OF:

 

Paid-in capital

    $ 4,603,389,413      $ 111,768,186      $ 46,337,565  

Accumulated earnings (loss)

      2,471,672,316        16,835,371        (7,468,529 ) 
  

 

 

     

 

 

     

 

 

  

NET ASSETS

    $ 7,075,061,729      $ 128,603,557      $ 38,869,036  
  

 

 

     

 

 

     

 

 

  

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:

 

Class A shares:

 

Net assets

    $ 927,320,702      $ 1,869,062      $ 6,262,325  
  

 

 

     

 

 

     

 

 

  

Shares of beneficial interest

      26,129,712        130,378        731,653  
  

 

 

     

 

 

     

 

 

  

Net asset value and redemption price per share

    $ 35.49      $ 14.34      $ 8.56  
  

 

 

     

 

 

     

 

 

  

Offering price per share (100/[100-maximum sales charge] of net asset value) (Note 1)

    $ 37.66      $ 15.21      $ 8.94  
  

 

 

     

 

 

     

 

 

  

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)

         

Net assets

    $ 89,400,085      $ 735,443      $ —  
  

 

 

     

 

 

     

 

 

  

Shares of beneficial interest

      2,540,244        51,789        —  
  

 

 

     

 

 

     

 

 

  

Net asset value and offering price per share

    $ 35.19      $ 14.20      $ —  
  

 

 

     

 

 

     

 

 

  

Class N shares:

 

Net assets

    $ 486,294,530      $ 229,119      $ 4,515,616  
  

 

 

     

 

 

     

 

 

  

Shares of beneficial interest

      13,710,850        16,008        525,632  
  

 

 

     

 

 

     

 

 

  

Net asset value, offering and redemption price per share

    $ 35.47      $ 14.31      $ 8.59  
  

 

 

     

 

 

     

 

 

  

Class Y shares:

 

Net assets

    $ 5,572,046,412      $ 125,769,933      $ 28,091,095  
  

 

 

     

 

 

     

 

 

  

Shares of beneficial interest

      157,126,529        8,779,583        3,273,446  
  

 

 

     

 

 

     

 

 

  

Net asset value, offering and redemption price per share

    $ 35.46      $ 14.33      $ 8.58  
  

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

33  |

Statements of Assets and Liabilities (continued)

 

June 30, 2022 (Unaudited)

 

     Mirova Global
Sustainable
Equity Fund		     Mirova
International
Sustainable
Equity Fund		     Mirova U.S.
Sustainable
Equity Fund		  

ASSETS

 

Investments at cost

    $ 1,042,654,409     $ 22,259,475     $ 3,766,202  

Net unrealized depreciation

      (140,838,405 )      (3,072,414 )      (230,800 ) 
  

 

 

    

 

 

    

 

 

  

Investments at value

      901,816,004       19,187,061       3,535,402  

Cash

      —       —       177,336  

Foreign currency at value (identified cost $4,009,236, $247,391 and $0, respectively)

      3,991,722       243,368       —  

Receivable for Fund shares sold

      4,587,785       5,183       —  

Receivable from investment adviser (Note 6)

      —       3,118       12,266  

Dividends and interest receivable

      263,914       28,238       1,247  

Tax reclaims receivable

      613,176       62,274       —  

Prepaid expenses (Note 8)

      140       4       —  
  

 

 

    

 

 

    

 

 

  

TOTAL ASSETS

      911,272,741       19,529,246       3,726,251  
  

 

 

    

 

 

    

 

 

  

LIABILITIES

 

Payable for securities purchased

      993,655       —       —  

Payable for Fund shares redeemed

      1,461,744       —       —  

Management fees payable (Note 6)

      598,490       —       —  

Deferred Trustees’ fees (Note 6)

      38,374       11,492       4,039  

Administrative fees payable (Note 6)

      34,761       806       141  

Payable to distributor (Note 6d)

      8,468       34       63  

Audit and tax services fees payable

      25,300       25,054       24,664  

Other accounts payable and accrued expenses

      90,394       20,274       18,323  
  

 

 

    

 

 

    

 

 

  

TOTAL LIABILITIES

      3,251,186       57,660       47,230  
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 908,021,555     $ 19,471,586     $ 3,679,021  
  

 

 

    

 

 

    

 

 

  

NET ASSETS CONSIST OF:

 

Paid-in capital

    $ 1,041,924,979     $ 22,172,279     $ 3,845,196  

Accumulated loss

      (133,903,424 )      (2,700,693 )      (166,175 ) 
  

 

 

    

 

 

    

 

 

  

NET ASSETS

    $ 908,021,555     $ 19,471,586     $ 3,679,021  
  

 

 

    

 

 

    

 

 

  

COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE:

 

Class A shares:

 

Net assets

    $ 32,120,967     $ 594,397     $ 79,310  
  

 

 

    

 

 

    

 

 

  

Shares of beneficial interest

      2,169,819       57,169       8,862  
  

 

 

    

 

 

    

 

 

  

Net asset value and redemption price per share

    $ 14.80     $ 10.40     $ 8.95  
  

 

 

    

 

 

    

 

 

  

Offering price per share (100/94.25 of net asset value) (Note 1)

    $ 15.70     $ 11.03     $ 9.50  
  

 

 

    

 

 

    

 

 

  

Class C shares: (redemption price per share is equal to net asset value less any applicable contingent deferred sales charge) (Note 1)

       

Net assets

    $ 12,730,948     $ —     $ 74,638  
  

 

 

    

 

 

    

 

 

  

Shares of beneficial interest

      904,665       —       8,441  
  

 

 

    

 

 

    

 

 

  

Net asset value and offering price per share

    $ 14.07     $ —     $ 8.84  
  

 

 

    

 

 

    

 

 

  

Class N shares:

 

Net assets

    $ 199,316,646     $ 17,385,829     $ 3,489,041  
  

 

 

    

 

 

    

 

 

  

Shares of beneficial interest

      13,316,309       1,663,458       388,535  
  

 

 

    

 

 

    

 

 

  

Net asset value, offering and redemption price per share

    $ 14.97     $ 10.45     $ 8.98  
  

 

 

    

 

 

    

 

 

  

Class Y shares:

 

Net assets

    $ 663,852,994     $ 1,491,360     $ 36,032  
  

 

 

    

 

 

    

 

 

  

Shares of beneficial interest

      44,370,933       142,906       4,016  
  

 

 

    

 

 

    

 

 

  

Net asset value, offering and redemption price per share

    $ 14.96     $ 10.44     $ 8.97  
  

 

 

    

 

 

    

 

 

  

 

See accompanying notes to financial statements.

 

|  34

Statements of Operations

 

For the Six Months Ended June 30, 2022 (Unaudited)

 

     Gateway
Fund		      Gateway Equity
Call Premium
Fund		      Mirova Global
Green Bond
Fund		  

INVESTMENT INCOME

 

Dividends

    $ 58,118,012      $ 957,690      $ —  

Interest

      43,863        1,279        309,941  

Less net foreign taxes withheld

      (69,136 )       (3,376 )       —  
  

 

 

     

 

 

     

 

 

  
     58,092,739        955,593        309,941  
  

 

 

     

 

 

     

 

 

  

Expenses

 

Management fees (Note 6)

      22,435,478        347,026        106,170  

Service and distribution fees (Note 6)

      1,701,875        6,803        8,091  

Administrative fees (Note 6)

      1,704,956        26,501        9,389  

Trustees’ fees and expenses (Note 6)

      116,555        8,028        6,906  

Trustees’ fees deferred compensation (Note 6)

      (137,961 )       (5,571 )       (1,014 ) 

Transfer agent fees and expenses (Notes 6 and 7)

      2,281,753        36,548        24,139  

Audit and tax services fees

      25,765        25,142        21,186  

Custodian fees and expenses

      139,591        43,925        6,375  

Interest expense (Note 10)

      —        58        4,735  

Legal fees (Note 8)

      92,633        1,233        533  

Registration fees

      122,630        34,470        18,538  

Regulatory filing fees

      6,500        6,500        6,500  

Shareholder reporting expenses

      183,813        6,359        7,095  

Miscellaneous expenses

      119,295        10,150        8,097  
  

 

 

     

 

 

     

 

 

  

Total expenses

      28,792,883        547,172        226,740  

Fee/expense recovery (Note 6)

      12,489        —        —  

Less waiver and/or expense reimbursement (Note 6)

      (300,807 )       (133,526 )       (77,424 ) 
  

 

 

     

 

 

     

 

 

  

Net expenses

      28,504,565        413,646        149,316  
  

 

 

     

 

 

     

 

 

  

Net investment income

      29,588,174        541,947        160,625  
  

 

 

     

 

 

     

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FUTURES CONTRACTS, OPTIONS WRITTEN AND FOREIGN CURRENCY TRANSACTIONS

         

Net realized gain (loss) on:

 

Investments

      259,059,352        (142,812 )       (2,287,322 ) 

Futures contracts

      —        —        1,221,004  

Options written

      400,149,968        6,218,536        —  

Foreign currency transactions (Note 2c)

      (369 )       15        (28,139 ) 

Net change in unrealized appreciation (depreciation) on:

 

Investments

      (1,815,691,719 )       (26,080,929 )       (6,539,704 ) 

Futures contracts

      —        —        1,006,804  

Options written

      97,009,787        1,862,025        —  

Foreign currency translations (Note 2c)

      191        (6 )       (48,034 ) 
  

 

 

     

 

 

     

 

 

  

Net realized and unrealized loss on investments, futures contracts, options written and foreign currency transactions

      (1,059,472,790 )       (18,143,171 )       (6,675,391 ) 
  

 

 

     

 

 

     

 

 

  

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ (1,029,884,616 )     $ (17,601,224 )     $ (6,514,766 ) 
  

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

35  |

Statements of Operations (continued)

 

For the Six Months Ended June 30, 2022 (Unaudited)

 

     Mirova Global
Sustainable
Equity Fund		      Mirova
International
Sustainable
Equity Fund		      Mirova U.S.
Sustainable
Equity Fund		  

INVESTMENT INCOME

 

Dividends

    $ 12,445,804      $ 515,471      $ 19,428  

Interest

      2,774        86        23  

Less net foreign taxes withheld

      (1,181,587 )       (59,387 )       (266 ) 
  

 

 

     

 

 

     

 

 

  
     11,266,991        456,170        19,185  
  

 

 

     

 

 

     

 

 

  

Expenses

 

Management fees (Note 6)

      4,050,446        100,199        13,523  

Service and distribution fees (Note 6)

      119,262        469        466  

Administrative fees (Note 6)

      223,902        5,533        919  

Trustees’ fees and expenses (Note 6)

      20,893        6,653        6,350  

Trustees’ fees deferred compensation (Note 6)

      (312 )       87        1,135  

Transfer agent fees and expenses (Notes 6 and 7)

      436,393        4,402        3,632  

Audit and tax services fees

      21,880        21,337        20,794  

Custodian fees and expenses

      39,511        13,589        1,022  

Interest expense (Notes 8 and 10)

      26,759        1,573        —  

Legal fees (Note 8)

      13,026        345        53  

Registration fees

      73,408        20,719        31,492  

Regulatory filing fees

      6,500        6,500        6,500  

Shareholder reporting expenses

      31,029        4,904        4,291  

Miscellaneous expenses

      50,226        9,897        8,352  
  

 

 

     

 

 

     

 

 

  

Total expenses

      5,112,923        196,207        98,529  

Less waiver and/or expense reimbursement (Note 6)

      (214,733 )       (80,949 )       (82,419 ) 
  

 

 

     

 

 

     

 

 

  

Net expenses

      4,898,190        115,258        16,110  
  

 

 

     

 

 

     

 

 

  

Net investment income

      6,368,801        340,912        3,075  
  

 

 

     

 

 

     

 

 

  

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS

         

Net realized gain (loss) on:

 

Investments

      1,914,824        296,904        64,529  

Foreign currency transactions (Note 2c)

      (411,457 )       (6,958 )       —  

Net change in unrealized appreciation (depreciation) on:

 

Investments

      (303,409,358 )       (8,742,450 )       (1,360,444 ) 

Foreign currency translations (Note 2c)

      (25,070 )       (10,077 )       —  
  

 

 

     

 

 

     

 

 

  

Net realized and unrealized loss on investments and foreign currency transactions

      (301,931,061 )       (8,462,581 )       (1,295,915 ) 
  

 

 

     

 

 

     

 

 

  

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

    $ (295,562,260 )     $ (8,121,669 )     $ (1,292,840 ) 
  

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

|  36

Statements of Changes in Net Assets

 

 

     Gateway Fund      Gateway Equity Call
Premium Fund		  
     Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		      Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		  

FROM OPERATIONS:

 

Net investment income

    $ 29,588,174      $ 49,256,628      $ 541,947      $ 539,101  

Net realized gain (loss) on investments, options written and foreign currency transactions

      659,208,951        (549,706,836 )       6,075,739        (5,401,601 ) 

Net change in unrealized appreciation (depreciation) on investments, options written and foreign currency translations

      (1,718,681,741 )       1,314,249,613        (24,218,910 )       19,067,765  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

      (1,029,884,616 )       813,799,405        (17,601,224 )       14,205,265  
  

 

 

     

 

 

     

 

 

     

 

 

  

FROM DISTRIBUTIONS TO SHAREHOLDERS:

 

Class A

      (2,794,502 )       (4,616,139 )       (6,047 )       (7,926 ) 

Class C

      —        —        —        (75 ) 

Class N

      (2,144,257 )       (3,190,505 )       (1,082 )       (4,105 ) 

Class Y

      (23,949,881 )       (41,377,637 )       (503,937 )       (532,807 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (28,888,640 )       (49,184,281 )       (511,066 )       (544,913 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)

      (50,707,580 )       294,964,158        40,848,206        32,303,743  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets

      (1,109,480,836 )       1,059,579,282        22,735,916        45,964,095  

NET ASSETS

 

Beginning of the period

      8,184,542,565        7,124,963,283        105,867,641        59,903,546  
  

 

 

     

 

 

     

 

 

     

 

 

  

End of the period

    $ 7,075,061,729      $ 8,184,542,565      $ 128,603,557      $ 105,867,641  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

37  |

Statements of Changes in Net Assets (continued)

 

 

     Mirova Global
Green Bond Fund		      Mirova Global Sustainable
Equity Fund		  
     Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		      Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		  

FROM OPERATIONS:

 

Net investment income

    $ 160,625      $ 261,984      $ 6,368,801      $ 2,101,557  

Net realized gain (loss) on investments, futures contracts and foreign currency transactions

      (1,094,457 )       2,318,906        1,503,367        150,307,939  

Net change in unrealized appreciation (depreciation) on investments, futures contracts and foreign currency translations

      (5,580,934 )       (3,822,067 )       (303,434,428 )       23,546,962  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

      (6,514,766 )       (1,241,177 )       (295,562,260 )       175,956,458  
  

 

 

     

 

 

     

 

 

     

 

 

  

FROM DISTRIBUTIONS TO SHAREHOLDERS:

 

Class A

      (94,690 )       (196,254 )       (1,526,670 )       (4,789,380 ) 

Class C

      —        —        (629,720 )       (1,953,531 ) 

Class N

      (94,183 )       (286,884 )       (8,849,875 )       (22,974,524 ) 

Class Y

      (465,702 )       (956,524 )       (30,857,661 )       (94,376,354 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (654,575 )       (1,439,662 )       (41,863,926 )       (124,093,789 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)

      (1,086,697 )       10,270,116        124,765,750        191,048,671  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets

      (8,256,038 )       7,589,277        (212,660,436 )       242,911,340  

NET ASSETS

 

Beginning of the period

      47,125,074        39,535,797        1,120,681,991        877,770,651  
  

 

 

     

 

 

     

 

 

     

 

 

  

End of the period

    $ 38,869,036      $ 47,125,074      $ 908,021,555      $ 1,120,681,991  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

|  38

Statements of Changes in Net Assets (continued)

 

 

     Mirova International
Sustainable Equity Fund		      Mirova U.S. Sustainable
Equity Fund		  
     Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		      Six Months
Ended
June 30, 2022
(Unaudited)		      Year Ended
December 31,
2021		  

FROM OPERATIONS:

 

Net investment income

    $ 340,912      $ 269,597      $ 3,075      $ 2,949  

Net realized gain on investments and foreign currency transactions

      289,946        225,743        64,529        433,439  

Net change in unrealized appreciation (depreciation) on investments and foreign currency translations

      (8,752,527 )       1,042,311        (1,360,444 )       1,023,001  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

      (8,121,669 )       1,537,651        (1,292,840 )       1,459,389  
  

 

 

     

 

 

     

 

 

     

 

 

  

FROM DISTRIBUTIONS TO SHAREHOLDERS:

 

Class A

      —        (8,864 )       (161 )       (623 ) 

Class C

      —        —        (3,411 )       (5,097 ) 

Class N

      —        (929,817 )       (163,302 )       (264,825 ) 

Class Y

      —        (41,940 )       (1,599 )       (2,393 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      —        (980,621 )       (168,473 )       (272,938 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS (NOTE 12)

      (2,138,691 )       12,545,607        89,509        (1,244,405 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets

      (10,260,360 )       13,102,637        (1,371,804 )       (57,954 ) 

NET ASSETS

 

Beginning of the period

      29,731,946        16,629,309        5,050,825        5,108,779  
  

 

 

     

 

 

     

 

 

     

 

 

  

End of the period

    $ 19,471,586      $ 29,731,946      $ 3,679,021      $ 5,050,825  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

39  |

Financial Highlights

 

For a share outstanding throughout each period.

 

    Gateway Fund—Class A  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		     Year Ended
December 31,
2017		  

Net asset value, beginning of the period

   $ 40.70     $ 36.76     $ 34.69     $ 31.65     $ 33.47     $ 30.84  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income(a)

     0.11       0.18       0.30       0.37       0.34       0.39  

Net realized and unrealized gain (loss)

     (5.21 )      3.93       2.08       3.05       (1.80 )      2.58  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (5.10 )      4.11       2.38       3.42       (1.46 )      2.97  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     (0.11 )      (0.17 )      (0.31 )      (0.38 )      (0.36 )      (0.34 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 35.49     $ 40.70     $ 36.76     $ 34.69     $ 31.65     $ 33.47  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(b)(c)

     (12.55 )%(d)      11.24 %      6.92 %      10.84 %      (4.39 )%      9.66 % 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

   $ 927,321     $ 1,073,713     $ 987,702     $ 1,125,464     $ 1,177,641     $ 1,669,272  

Net expenses(e)

     0.93 %(f)(g)      0.94 %(h)      0.94 %      0.94 %      0.94 %      0.94 % 

Gross expenses

     0.94 %(f)(g)      0.98 %(h)      1.02 %      1.01 %      1.01 %      1.02 % 

Net investment income

     0.58 %(f)      0.46 %      0.88 %      1.12 %      1.03 %      1.20 % 

Portfolio turnover rate

     6 %      11 %      22 %      12 %      10 %      34 % 

 

(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)

A sales charge for Class A shares is not reflected in total return calculations.

(d)

Periods less than one year are not annualized.

(e)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(f)

Computed on an annualized basis for periods less than one year.

(g)

Includes refund of prior year service fee of 0.01%. See Note 6b of Notes to Financial Statements.

(h)

Includes refund of prior year service fee of 0.01%

 

See accompanying notes to financial statements.

 

|  40

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Gateway Fund—Class C  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Year Ended
December 31,
2017
  

Net asset value, beginning of the period

   $ 40.41     $ 36.60     $ 34.54     $ 31.50     $ 33.32     $ 30.72  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income (loss)(a)

     (0.04 )      (0.11 )      0.04       0.12       0.09       0.14  

Net realized and unrealized gain (loss)

     (5.18 )      3.92       2.07       3.03       (1.80 )      2.57  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (5.22 )      3.81       2.11       3.15       (1.71 )      2.71  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     —       —       (0.05 )      (0.11 )      (0.11 )      (0.11 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 35.19     $ 40.41     $ 36.60     $ 34.54     $ 31.50     $ 33.32  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(b)(c)

     (12.92 )%(d)      10.41 %      6.13 %      10.02 %      (5.15 )%      8.85 % 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 89,400     $ 114,019     $ 142,623     $ 215,947     $ 272,904     $ 336,891  

Net expenses(e)

     1.70 %(f)      1.70 %      1.70 %      1.70 %      1.70 %      1.70 % 

Gross expenses

     1.71 %(f)      1.73 %      1.77 %      1.76 %      1.76 %      1.77 % 

Net investment income (loss)

     (0.20 )%(f)      (0.30 )%      0.12 %      0.37 %      0.27 %      0.44 % 

Portfolio turnover rate

     6 %      11 %      22 %      12 %      10 %      34 % 

 

(a)

Per share net investment income (loss) 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)

A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

(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.

 

41  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Gateway Fund—Class N  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		     Period Ended
December 31,
2017*		  

Net asset value, beginning of the period

   $ 40.68     $ 36.74     $ 34.68     $ 31.63     $ 33.46     $ 31.89  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income(a)

     0.16       0.29       0.40       0.47       0.44       0.32  

Net realized and unrealized gain (loss)

     (5.21 )      3.94       2.07       3.06       (1.81 )      1.56  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (5.05 )      4.23       2.47       3.53       (1.37 )      1.88  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     (0.16 )      (0.29 )      (0.41 )      (0.48 )      (0.46 )      (0.31 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 35.47     $ 40.68     $ 36.74     $ 34.68     $ 31.63     $ 33.46  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

     (12.43 )%(b)      11.57 %(c)      7.25 %(c)      11.17 %(c)      (4.13 )%(c)      5.93 %(b)(c) 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 486,295     $ 504,299     $ 369,829     $ 369,793     $ 179,727     $ 126,262  

Net expenses

     0.65 %(d)(e)      0.65 %(f)      0.65 %(f)      0.65 %(f)      0.65 %(f)      0.65 %(d)(f) 

Gross expenses

     0.65 %(d)(e)      0.67 %      0.70 %      0.69 %      0.70 %      0.74 %(d) 

Net investment income

     0.86 %(d)      0.74 %      1.17 %      1.40 %      1.32 %      1.42 %(d) 

Portfolio turnover rate

     6 %      11 %      22 %      12 %      10 %      34 %(g) 

 

 

*

From commencement of Class operations on May 1, 2017 through December 31, 2017.

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Periods less than one year are not annualized.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Computed on an annualized basis for periods less than one year.

(e)

Includes fee/expense recovery of 0.01%.

(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)

Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017.

 

See accompanying notes to financial statements.

 

|  42

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Gateway Fund—Class Y  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Year Ended
December 31,
2017
  

Net asset value, beginning of the period

   $ 40.67     $ 36.73     $ 34.67     $ 31.63     $ 33.46     $ 30.83  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income(a)

     0.15       0.27       0.38       0.46       0.43       0.47  

Net realized and unrealized gain (loss)

     (5.21 )      3.94       2.07       3.04       (1.81 )      2.58  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (5.06 )      4.21       2.45       3.50       (1.38 )      3.05  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     (0.15 )      (0.27 )      (0.39 )      (0.46 )      (0.45 )      (0.42 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 35.46     $ 40.67     $ 36.73     $ 34.67     $ 31.63     $ 33.46  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(b)

     (12.46 )%(c)      11.49 %      7.19 %      11.12 %      (4.18 )%      9.93 % 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 5,572,046     $ 6,492,511     $ 5,624,810     $ 6,446,007     $ 6,508,061     $ 6,392,640  

Net expenses(d)

     0.70 %(e)      0.70 %      0.70 %      0.70 %      0.70 %      0.70 % 

Gross expenses

     0.71 %(e)      0.73 %      0.77 %      0.76 %      0.76 %      0.77 % 

Net investment income

     0.81 %(e)      0.70 %      1.12 %      1.37 %      1.28 %      1.44 % 

Portfolio turnover rate

     6 %      11 %      22 %      12 %      10 %      34 % 

 

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(c)

Periods less than one year are not annualized.

(d)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(e)

Computed on an annualized basis for periods less than one year.

 

See accompanying notes to financial statements.

 

43  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Gateway Equity Call Premium Fund—Class A  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		     Year Ended
December 31,
2017		  

Net asset value, beginning of the period

   $ 16.66     $ 14.03     $ 13.07     $ 11.32     $ 12.08     $ 10.89  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income(a)

     0.05       0.07       0.09       0.10       0.09       0.10  

Net realized and unrealized gain (loss)

     (2.33 )      2.62       0.95       1.76       (0.76 )      1.18  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (2.28 )      2.69       1.04       1.86       (0.67 )      1.28  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     (0.04 )      (0.06 )      (0.08 )      (0.11 )      (0.09 )      (0.09 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 14.34     $ 16.66     $ 14.03     $ 13.07     $ 11.32     $ 12.08  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(b)(c)

     (13.68 )%(d)      19.20 %      8.06 %      16.46 %      (5.60 )%      11.80 % 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 1,869     $ 2,613     $ 1,456     $ 2,363     $ 2,375     $ 7,085  

Net expenses(e)

     0.93 %(f)      1.03 %(g)(h)      1.20 %      1.20 %      1.20 %      1.20 % 

Gross expenses

     1.15 %(f)      1.20 %      1.43 %      1.42 %      1.44 %      1.30 % 

Net investment income

     0.63 %(f)      0.43 %      0.69 %      0.82 %      0.73 %      0.85 % 

Portfolio turnover rate

     1 %      5 %      15 %      17 %      58 %      19 % 

 

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

A sales charge for Class A shares is not reflected in total return calculations.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Periods less than one year are not annualized.

(e)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(f)

Computed on an annualized basis for periods less than one year.

(g)

Effective July 1, 2021, the expense limit decreased from 1.20% to 0.93%.

(h)

Includes additional voluntary waiver of advisory fee of 0.02%.

 

See accompanying notes to financial statements.

 

|  44

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Gateway Equity Call Premium Fund—Class C  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Year Ended
December 31,
2017
  

Net asset value, beginning of the period

   $ 16.52     $ 13.96     $ 13.03     $ 11.29     $ 12.05     $ 10.87  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income (loss)(a)

     (0.01 )      (0.05 )      (0.01 )      0.01       0.00 (b)      0.01  

Net realized and unrealized gain (loss)

     (2.31 )      2.61       0.95       1.74       (0.75 )      1.18  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (2.32 )      2.56       0.94       1.75       (0.75 )      1.19  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     —       (0.00 )(b)      (0.01 )      (0.01 )      (0.01 )      (0.01 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 14.20     $ 16.52     $ 13.96     $ 13.03     $ 11.29     $ 12.05  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(c)(d)

     (13.99 )%(e)      18.28 %      7.23 %      15.54 %      (6.24 )%      10.95 % 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 735     $ 814     $ 741     $ 727     $ 849     $ 648  

Net expenses(f)

     1.68 %(g)      1.79 %(h)(i)      1.95 %      1.95 %      1.95 %      1.95 % 

Gross expenses

     1.90 %(g)      1.96 %      2.17 %      2.17 %      2.19 %      2.05 % 

Net investment income (loss)

     (0.09 )%(g)      (0.33 )%      (0.10 )%      0.07 %      0.02 %      0.10 % 

Portfolio turnover rate

     1 %      5 %      15 %      17 %      58 %      19 % 

 

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

(d)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(e)

Periods less than one year are not annualized.

(f)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(g)

Computed on an annualized basis for periods less than one year.

(h)

Effective July 1, 2021, the expense limit decreased from 1.95% to 1.68%.

(i)

Includes additional voluntary waiver of advisory fee of 0.02%.

 

See accompanying notes to financial statements.

 

45  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Gateway Equity Call Premium Fund—Class N  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Year Ended
December 31,
2018		     Period Ended
December 31,
2017*		  

Net asset value, beginning of the period

   $ 16.63     $ 14.01     $ 13.06     $ 11.32     $ 12.09     $ 11.34  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income(a)

     0.07       0.11       0.12       0.13       0.13       0.10  

Net realized and unrealized gain (loss)

     (2.32 )      2.61       0.95       1.76       (0.77 )      0.75  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (2.25 )      2.72       1.07       1.89       (0.64 )      0.85  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     (0.07 )      (0.10 )      (0.12 )      (0.15 )      (0.13 )      (0.10 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 14.31     $ 16.63     $ 14.01     $ 13.06     $ 11.32     $ 12.09  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(b)

     (13.58 )%(c)      19.49 %      8.36 %      16.73 %      (5.32 )%      7.50 %(c) 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 229     $ 437     $ 728     $ 530     $ 1     $ 1  

Net expenses(d)

     0.63 %(e)      0.77 %(f)      0.90 %      0.90 %      0.90 %      0.90 %(e) 

Gross expenses

     1.44 %(e)      1.08 %      1.29 %      1.63 %      15.41 %      14.26 %(e) 

Net investment income

     0.92 %(e)      0.70 %      0.95 %      1.03 %      1.04 %      1.22 %(e) 

Portfolio turnover rate

     1 %      5 %      15 %      17 %      58 %      19 %(g) 

 

*

From commencement of Class operations on May 1, 2017 through December 31, 2017.

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

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)

Effective July 1, 2021, the expense limit decreased from 0.90% to 0.63%.

(g)

Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017.

 

See accompanying notes to financial statements.

 

|  46

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Gateway Equity Call Premium Fund—Class Y  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Year Ended
December 31,
2017
  

Net asset value, beginning of the period

   $ 16.65     $ 14.02     $ 13.07     $ 11.32     $ 12.09     $ 10.89  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income(a)

     0.07       0.10       0.11       0.13       0.12       0.13  

Net realized and unrealized gain (loss)

     (2.33 )      2.63       0.96       1.76       (0.76 )      1.19  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (2.26 )      2.73       1.07       1.89       (0.64 )      1.32  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     (0.06 )      (0.10 )      (0.12 )      (0.14 )      (0.13 )      (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 14.33     $ 16.65     $ 14.02     $ 13.07     $ 11.32     $ 12.09  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(b)

     (13.53 )%(c)      19.43 %      8.38 %      16.67 %      (5.37 )%      12.21 % 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 125,770     $ 102,004     $ 56,979     $ 60,794     $ 67,125     $ 73,255  

Net expenses(d)

     0.68 %(e)      0.78 %(f)(g)      0.95 %      0.95 %      0.95 %      0.95 % 

Gross expenses

     0.90 %(e)      0.95 %      1.17 %      1.17 %      1.19 %      1.05 % 

Net investment income

     0.92 %(e)      0.67 %      0.90 %      1.06 %      1.01 %      1.10 % 

Portfolio turnover rate

     1 %      5 %      15 %      17 %      58 %      19 % 

 

(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)

Effective July 1, 2021, the expense limit decreased from 0.95% to 0.68%.

(g)

Includes additional voluntary waiver of advisory fee of 0.02%.

 

See accompanying notes to financial statements.

 

47  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Mirova Global Green Bond—Class A  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Period Ended
December 31,
2017*
  

Net asset value, beginning of the period

   $ 10.14     $ 10.77     $ 10.36     $ 9.71     $ 9.96     $ 10.00  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income(a)

     0.03       0.04       0.07       0.09       0.08       0.04  

Net realized and unrealized gain (loss)

     (1.47 )      (0.37 )      0.71       0.80       (0.02 )      0.11  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (1.44 )      (0.33 )      0.78       0.89       0.06       0.15  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     (0.01 )      (0.14 )      (0.18 )      (0.10 )      (0.31 )      (0.19 ) 

Net realized capital gains

     (0.13 )      (0.16 )      (0.19 )      (0.14 )      —       —  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

     (0.14 )      (0.30 )      (0.37 )      (0.24 )      (0.31 )      (0.19 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 8.56     $ 10.14     $ 10.77     $ 10.36     $ 9.71     $ 9.96  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(b)(c)

     (14.31 )%(d)      (3.02 )%      7.61 %      9.16 %      0.64 %      1.46 %(d) 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 6,262     $ 6,798     $ 5,674     $ 2,549     $ 814     $ 139  

Net expenses(e)

     0.92 %(f)(g)      0.96 %(h)(i)      0.97 %(j)      0.96 %(k)      0.96 %(l)      0.96 %(f)(m) 

Gross expenses

     1.29 %(f)(g)      1.41 %(i)      1.43 %(j)      1.56 %(k)      1.75 %(l)      5.23 %(f)(m) 

Net investment income

     0.54 %(f)      0.39 %      0.69 %      0.86 %      0.85 %      0.49 %(f) 

Portfolio turnover rate

     36 %      37 %      53 %      25 %      46 %      46 % 

 

*

From commencement of operations on February 28, 2017 through December 31, 2017.

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

A sales charge for Class A shares is not reflected in total return calculations.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Periods less than one year are not annualized.

(e)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(f)

Computed on an annualized basis for periods less than one year.

(g)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.90% and the ratio of gross expenses would have been 1.27%.

(h)

Effective July 1, 2021, the expense limit decreased from 0.95% to 0.90%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.92% and the ratio of gross expenses would have been 1.37%.

(j)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 1.41%.

(k)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 1.55%.

(l)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 1.74%.

(m)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 5.22%.

 

See accompanying notes to financial statements.

 

|  48

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Mirova Global Green Bond—Class N  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Period Ended
December 31,
2017*
  

Net asset value, beginning of the period

   $ 10.17     $ 10.80     $ 10.39     $ 9.73     $ 9.98     $ 10.00  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income(a)

     0.04       0.07       0.10       0.12       0.11       0.06  

Net realized and unrealized gain (loss)

     (1.47 )      (0.36 )      0.71       0.80       (0.02 )      0.12  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (1.43 )      (0.29 )      0.81       0.92       0.09       0.18  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     (0.02 )      (0.18 )      (0.21 )      (0.12 )      (0.34 )      (0.20 ) 

Net realized capital gains

     (0.13 )      (0.16 )      (0.19 )      (0.14 )      —       —  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

     (0.15 )      (0.34 )      (0.40 )      (0.26 )      (0.34 )      (0.20 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 8.59     $ 10.17     $ 10.80     $ 10.39     $ 9.73     $ 9.98  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(b)

     (14.21 )%(c)      (2.73 )%      7.89 %      9.52 %      0.93 %      1.77 %(c) 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 4,516     $ 8,110     $ 11,781     $ 27,322     $ 27,050     $ 25,805  

Net expenses(d)

     0.63 %(e)(f)      0.67 %(g)(h)      0.67 %(i)      0.66 %(j)      0.66 %(k)      0.67 %(e)(l) 

Gross expenses

     0.95 %(e)(f)      1.05 %(h)      1.07 %(i)      1.08 %(j)      1.12 %(k)      1.11 %(e)(l) 

Net investment income

     0.82 %(e)      0.69 %      0.96 %      1.17 %      1.13 %      0.75 %(e) 

Portfolio turnover rate

     36 %      37 %      53 %      25 %      46 %      46 % 

 

*

From commencement of operations on February 28, 2017 through December 31, 2017.

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(c)

Periods less than one year are not annualized.

(d)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(e)

Computed on an annualized basis for periods less than one year.

(f)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.60% and the ratio of gross expenses would have been 0.93%.

(g)

Effective July 1, 2021, the expense limit decreased from 0.65% to 0.60%.

(h)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.63% and the ratio of gross expenses would have been 1.02%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.65% and the ratio of gross expenses would have been 1.05%.

(j)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.65% and the ratio of gross expenses would have been 1.07%.

(k)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.65% and the ratio of gross expenses would have been 1.11%.

(l)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.65% and the ratio of gross expenses would have been 1.10%.

 

See accompanying notes to financial statements.

 

49  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Mirova Global Green Bond—Class Y  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Period Ended
December 31,
2017*
  

Net asset value, beginning of the period

   $ 10.16     $ 10.79     $ 10.37     $ 9.72     $ 9.97     $ 10.00  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income(a)

     0.04       0.07       0.10       0.11       0.12       0.06  

Net realized and unrealized gain (loss)

     (1.48 )      (0.37 )      0.72       0.80       (0.03 )      0.11  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (1.44 )      (0.30 )      0.82       0.91       0.09       0.17  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     (0.01 )      (0.17 )      (0.21 )      (0.12 )      (0.34 )      (0.20 ) 

Net realized capital gains

     (0.13 )      (0.16 )      (0.19 )      (0.14 )      —       —  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

     (0.14 )      (0.33 )      (0.40 )      (0.26 )      (0.34 )      (0.20 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 8.58     $ 10.16     $ 10.79     $ 10.37     $ 9.72     $ 9.97  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(b)

     (14.23 )%(c)      (2.69 )%      7.85 %      9.38 %      0.89 %      1.66 %(c) 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 28,091     $ 32,217     $ 22,081     $ 7,060     $ 1,205     $ 43  

Net expenses(d)

     0.67 %(e)(f)      0.71 %(g)(h)      0.72 %(i)      0.71 %(j)      0.71 %(k)      0.71 %(e)(l) 

Gross expenses

     1.04 %(e)(f)      1.16 %(h)      1.18 %(i)      1.28 %(j)      1.39 %(k)      3.62 %(e)(l) 

Net investment income

     0.79 %(e)      0.63 %      0.94 %      1.10 %      1.19 %      0.71 %(e) 

Portfolio turnover rate

     36 %      37 %      53 %      25 %      46 %      46 % 

 

*

From commencement of operations on February 28, 2017 through December 31, 2017.

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(c)

Periods less than one year are not annualized.

(d)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(e)

Computed on an annualized basis for periods less than one year.

(f)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.65% and the ratio of gross expenses would have been 1.02%.

(g)

Effective July 1, 2021, the expense limit decreased from 0.70% to 0.65%.

(h)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.67% and the ratio of gross expenses would have been 1.13%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.70% and the ratio of gross expenses would have been 1.16%.

(j)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.70% and the ratio of gross expenses would have been 1.27%.

(k)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.70% and the ratio of gross expenses would have been 1.39%.

(l)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.70% and the ratio of gross expenses would have been 3.62%.

 

See accompanying notes to financial statements.

 

|  50

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Mirova Global Sustainable Equity Fund—Class A  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Year Ended
December 31,
2017
  

Net asset value, beginning of the period

   $ 20.53     $ 19.57     $ 14.92     $ 11.45     $ 12.77     $ 9.90  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income (loss)(a)

     0.08       (0.01 )      (0.02 )      0.03       0.00 (b)      (0.04 ) 

Net realized and unrealized gain (loss)

     (5.11 )      3.45       4.77       3.69       (0.84 )      3.06  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (5.03 )      3.44       4.75       3.72       (0.84 )      3.02  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

     —       (0.00 )(b)      (0.00 )(b)      (0.03 )      (0.00 )(b)      (0.03 ) 

Net realized capital gains

     (0.70 )      (2.48 )      (0.10 )      (0.22 )      (0.48 )      (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

     (0.70 )      (2.48 )      (0.10 )      (0.25 )      (0.48 )      (0.15 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 14.80     $ 20.53     $ 19.57     $ 14.92     $ 11.45     $ 12.77  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(c)(d)

     (25.03 )%(e)      17.82 %      32.07 %      32.63 %      (6.54 )%      30.44 % 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 32,121     $ 43,117     $ 33,625     $ 12,884     $ 6,360     $ 3,260  

Net expenses(f)

     1.21 %(g)(h)      1.21 %(i)      1.20 %      1.21 %(j)      1.30 %(k)(l)      1.29 % 

Gross expenses

     1.26 %(g)(h)      1.24 %(i)      1.24 %      1.39 %(j)      1.39 %(k)      1.43 % 

Net investment income (loss)

     0.99 %(g)      (0.03 )%      (0.14 )%      0.21 %      0.03 %      (0.36 )% 

Portfolio turnover rate

     10 %      40 %(m)      11 %      23 %      19 %      20 % 

 

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

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.

(h)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.20% and the ratio of gross expenses would have been 1.25%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.20% and the ratio of gross expenses would have been 1.24%.

(j)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.20% and the ratio of gross expenses would have been 1.38%.

(k)

Includes interest expense of less than 0.01%.

(l)

Effective December 28, 2018, the expense limit decreased from 1.30% to 1.20%.

(m)

The variation in the Fund’s turnover rate from 2020 to 2021 was primarily due to an increase in shareholder activity.

 

See accompanying notes to financial statements.

 

51  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Mirova Global Sustainable Equity Fund—Class C  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Year Ended
December 31,
2017
  

Net asset value, beginning of the period

   $ 19.62     $ 18.95     $ 14.56     $ 11.24     $ 12.63     $ 9.85  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income (loss)(a)

     0.02       (0.16 )      (0.13 )      (0.07 )      (0.09 )      (0.12 ) 

Net realized and unrealized gain (loss)

     (4.87 )      3.31       4.62       3.61       (0.82 )      3.02  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (4.85 )      3.15       4.49       3.54       (0.91 )      2.90  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

     —       (0.00 )(b)      (0.00 )(b)      —       —       —  

Net realized capital gains

     (0.70 )      (2.48 )      (0.10 )      (0.22 )      (0.48 )      (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

     (0.70 )      (2.48 )      (0.10 )      (0.22 )      (0.48 )      (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 14.07     $ 19.62     $ 18.95     $ 14.56     $ 11.24     $ 12.63  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(c)(d)

     (25.28 )%(e)      16.85 %      31.07 %      31.66 %      (7.20 )%      29.40 % 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 12,731     $ 17,248     $ 11,196     $ 5,406     $ 2,706     $ 1,164  

Net expenses(f)

     1.96 %(g)(h)      1.96 %(i)      1.95 %      1.96 %(j)      2.05 %(k)(l)      2.04 % 

Gross expenses

     2.01 %(g)(h)      1.99 %(i)      1.99 %      2.14 %(j)      2.14 %(k)      2.18 % 

Net investment income (loss)

     0.24 %(g)      (0.79 )%      (0.84 )%      (0.52 )%      (0.72 )%      (1.02 )% 

Portfolio turnover rate

     10 %      40 %(m)      11 %      23 %      19 %      20 % 

 

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

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.

(h)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.95% and the ratio of gross expenses would have been 2.00%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.95% and the ratio of gross expenses would have been 1.99%.

(j)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.95% and the ratio of gross expenses would have been 2.13%.

(k)

Includes interest expense of less than 0.01%.

(l)

Effective December 28, 2018, the expense limit decreased from 2.05% to 1.95%.

(m)

The variation in the Fund’s turnover rate from 2020 to 2021 was primarily due to an increase in shareholder activity.

 

See accompanying notes to financial statements.

 

|  52

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Mirova Global Sustainable Equity Fund—Class N  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Period Ended
December 31,
2017*
  

Net asset value, beginning of the period

   $ 20.72     $ 19.71     $ 14.99     $ 11.49     $ 12.81     $ 11.29  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income (loss)(a)

     0.11       0.05       0.01       0.06       (0.01 )      0.02  

Net realized and unrealized gain (loss)

     (5.16 )      3.49       4.82       3.72       (0.79 )      1.66  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (5.05 )      3.54       4.83       3.78       (0.80 )      1.68  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

     —       (0.05 )      (0.01 )      (0.06 )      (0.04 )      (0.04 ) 

Net realized capital gains

     (0.70 )      (2.48 )      (0.10 )      (0.22 )      (0.48 )      (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

     (0.70 )      (2.53 )      (0.11 )      (0.28 )      (0.52 )      (0.16 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 14.97     $ 20.72     $ 19.71     $ 14.99     $ 11.49     $ 12.81  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return

     (24.90 )%(b)      18.17 %      32.44 %(c)      33.05 %(c)      (6.26 )%(c)      14.81 %(b)(c) 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 199,317     $ 219,679     $ 72,768     $ 11,000     $ 2,842     $ 1  

Net expenses

     0.90 %(d)(e)      0.91 %(f)(g)      0.90 %(h)      0.90 %(h)(i)      1.01 %(h)(j)(k)      1.00 %(d)(h) 

Gross expenses

     0.90 %(d)(e)      0.91 %(f)(g)      0.93 %      1.08 %(i)      1.08 %(j)      14.30 %(d) 

Net investment income (loss)

     1.35 %(d)      0.24 %      0.08 %      0.46 %      (0.08 )%      0.29 %(d) 

Portfolio turnover rate

     10 %      40 %(l)      11 %      23 %      19 %      20 %(m) 

 

*

From commencement of Class operations on May 1, 2017 through December 31, 2017.

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Periods less than one year are not annualized.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Computed on an annualized basis for periods less than one year.

(e)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.89% and the ratio of gross expenses would have been 0.90%.

(f)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.90% and the ratio of gross expenses would have been 0.90%.

(g)

Includes fee/expense recovery of 0.01%.

(h)

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.

(i)

Includes interest expense of less than 0.01%.

(j)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.99% and the ratio of gross expenses would have been 1.07%.

(k)

Effective December 28, 2018, the expense limit decreased from 1.00% to 0.90%.

(l)

The variation in the Fund’s turnover rate from 2020 to 2021 was primarily due to an increase in shareholder activity.

(m)

Represents the Fund’s portfolio turnover rate for the year ended December 31, 2017.

 

See accompanying notes to financial statements.

 

53  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

    Mirova Global Sustainable Equity Fund—Class Y  
    Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Year Ended
December 31,
2018
     Year Ended
December 31,
2017
  

Net asset value, beginning of the period

   $ 20.71     $ 19.71     $ 14.99     $ 11.49     $ 12.81     $ 9.91  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

            

Net investment income(a)

     0.11       0.05       0.01       0.07       0.04       0.03  

Net realized and unrealized gain (loss)

     (5.16 )      3.46       4.81       3.70       (0.85 )      3.02  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

     (5.05 )      3.51       4.82       3.77       (0.81 )      3.05  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

            

Net investment income

     —       (0.03 )      (0.00 )(b)      (0.05 )      (0.03 )      (0.03 ) 

Net realized capital gains

     (0.70 )      (2.48 )      (0.10 )      (0.22 )      (0.48 )      (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

     (0.70 )      (2.51 )      (0.10 )      (0.27 )      (0.51 )      (0.15 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

   $ 14.96     $ 20.71     $ 19.71     $ 14.99     $ 11.49     $ 12.81  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(c)

     (24.91 )%(d)      18.06 %      32.42 %      32.99 %      (6.32 )%      30.75 % 

RATIOS TO AVERAGE NET ASSETS:

            

Net assets, end of the period (000’s)

   $ 663,853     $ 840,638     $ 760,181     $ 118,032     $ 69,705     $ 63,359  

Net expenses(e)

     0.96 %(f)(g)      0.96 %(h)      0.95 %      0.96 %(i)      1.05 %(j)(k)      1.04 % 

Gross expenses

     1.01 %(f)(g)      0.99 %(h)      0.99 %      1.14 %(i)      1.15 %(j)      1.16 % 

Net investment income

     1.27 %(f)      0.22 %      0.06 %      0.50 %      0.29 %      0.26 % 

Portfolio turnover rate

     10 %      40 %(l)      11 %      23 %      19 %      20 % 

 

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Periods less than one year are not annualized.

(e)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(f)

Computed on an annualized basis for periods less than one year.

(g)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 1.00%.

(h)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 0.99%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 1.13%.

(j)

Includes interest expense of less than 0.01%.

(k)

Effective December 28, 2018, the expense limit decreased from 1.05% to 0.95%.

(l)

The variation in the Fund’s turnover rate from 2020 to 2021 was primarily due to an increase in shareholder activity.

 

See accompanying notes to financial statements.

 

|  54

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Mirova International Sustainable Equity Fund—Class A  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Year Ended
December 31,
2020		     Year Ended
December 31,
2019		     Period Ended
December 31,
2018*		  

Net asset value, beginning of the period

    $ 14.35     $ 13.95     $ 12.51     $ 10.03     $ 10.00  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income (loss)(a)

      0.15       0.08       (0.01 )      0.12       (0.00 )(b) 

Net realized and unrealized gain (loss)

      (4.10 )      0.78       2.87       2.48       0.03  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

      (3.95 )      0.86       2.86       2.60       0.03  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

           

Net investment income

      —       (0.09 )      (0.12 )      (0.12 )      —  

Net realized capital gains

      —       (0.37 )      (1.30 )      —       —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

      —       (0.46 )      (1.42 )      (0.12 )      —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

    $ 10.40     $ 14.35     $ 13.95     $ 12.51     $ 10.03  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(c)(d)

      (27.53 )%(e)      6.22 %      23.18 %      25.97 %      0.30 %(e) 

RATIOS TO AVERAGE NET ASSETS:

           

Net assets, end of the period (000’s)

    $ 594     $ 380     $ 76     $ 4     $ 1  

Net expenses(f)

      1.21 %(g)(h)      1.21 %(i)      1.26 %(j)      1.21 %(k)      1.20 %(g) 

Gross expenses

      2.12 %(g)(h)      2.08 %(i)      5.69 %(j)      107.91 %(k)      22.87 %(g) 

Net investment income (loss)

      2.51 %(g)      0.57 %      (0.04 )%      1.09 %      (1.20 )%(g) 

Portfolio turnover rate

      6 %      8 %      11 %      8 %      0 % 

 

*

From commencement of operations on December 28, 2018 through December 31, 2018.

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

A sales charge for Class A shares is not reflected in total return calculations.

(d)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(e)

Periods less than one year are not annualized.

(f)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(g)

Computed on an annualized basis for periods less than one year.

(h)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.20% and the ratio of gross expenses would have been 2.11%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.20% and the ratio of gross expenses would have been 2.07%.

(j)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.20% and the ratio of gross expenses would have been 5.64%.

(k)

Includes interest expense. Without this expense the ratio of net expenses would have been 1.20% and the ratio of gross expenses would have been 107.90%.

 

See accompanying notes to financial statements.

 

55  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Mirova International Sustainable Equity Fund—Class N  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Period Ended
December 31,
2018*
  

Net asset value, beginning of the period

    $ 14.40     $ 13.99     $ 12.51     $ 10.03     $ 10.00  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income (loss)(a)

      0.16       0.14       0.07       0.15       (0.00 )(b) 

Net realized and unrealized gain (loss)

      (4.11 )      0.76       2.84       2.49       0.03  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

      (3.95 )      0.90       2.91       2.64       0.03  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

           

Net investment income

      —       (0.12 )      (0.13 )      (0.16 )      —  

Net realized capital gains

      —       (0.37 )      (1.30 )      —       —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

      —       (0.49 )      (1.43 )      (0.16 )      —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

    $ 10.45     $ 14.40     $ 13.99     $ 12.51     $ 10.03  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(c)

      (27.43 )%(d)      6.47 %      23.60 %      26.31 %      0.30 %(d) 

RATIOS TO AVERAGE NET ASSETS:

           

Net assets, end of the period (000’s)

    $ 17,386     $ 27,569     $ 16,478     $ 17,193     $ 10,035  

Net expenses(e)

      0.91 %(f)(g)      0.91 %(h)      0.93 %(i)      0.92 %(j)      0.90 %(f) 

Gross expenses

      1.54 %(f)(g)      1.44 %(h)      1.83 %(i)      1.99 %(j)      22.55 %(f) 

Net investment income (loss)

      2.72 %(f)      0.94 %      0.58 %      1.36 %      (0.90 )%(f) 

Portfolio turnover rate

      6 %      8 %      11 %      8 %      0 % 

 

*

From commencement of operations on December 28, 2018 through December 31, 2018.

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Periods less than one year are not annualized.

(e)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(f)

Computed on an annualized basis for periods less than one year.

(g)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.90% and the ratio of gross expenses would have been 1.52%.

(h)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.90% and the ratio of gross expenses would have been 1.43%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.90% and the ratio of gross expenses would have been 1.80%.

(j)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.75% and the ratio of gross expenses would have been 1.22%.

 

See accompanying notes to financial statements.

 

|  56

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Mirova International Sustainable Equity Fund—Class Y  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Year Ended
December 31,
2020
     Year Ended
December 31,
2019
     Period Ended
December 31,
2018*
  

Net asset value, beginning of the period

    $ 14.38     $ 13.98     $ 12.50     $ 10.03     $ 10.00  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

           

Net investment income (loss)(a)

      0.17       0.08       0.03       0.15       (0.00 )(b) 

Net realized and unrealized gain (loss)

      (4.11 )      0.80       2.88       2.48       0.03  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from Investment Operations

      (3.94 )      0.88       2.91       2.63       0.03  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

           

Net investment income

      —       (0.11 )      (0.13 )      (0.16 )      —  

Net realized capital gains

      —       (0.37 )      (1.30 )      —       —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Distributions

      —       (0.48 )      (1.43 )      (0.16 )      —  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

    $ 10.44     $ 14.38     $ 13.98     $ 12.50     $ 10.03  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total return(c)

      (27.40 )%(d)      6.39 %      23.60 %      26.21 %      0.30 %(d) 

RATIOS TO AVERAGE NET ASSETS:

           

Net assets, end of the period (000’s)

    $ 1,491     $ 1,783     $ 75     $ 9     $ 1  

Net expenses(e)

      0.96 %(f)(g)      0.96 %(h)      1.00 %(i)      0.96 %(j)      0.95 %(f) 

Gross expenses

      1.87 %(f)(g)      1.83 %(h)      6.51 %(i)      94.13 %(j)      22.51 %(f) 

Net investment income (loss)

      2.81 %(f)      0.52 %      0.21 %      1.36 %      (0.95 )%(f) 

Portfolio turnover rate

      6 %      8 %      11 %      8 %      0 % 

 

*

From commencement of operations on December 28, 2018 through December 31, 2018.

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Periods less than one year are not annualized.

(e)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(f)

Computed on an annualized basis for periods less than one year.

(g)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 1.86%.

(h)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 1.82%.

(i)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 6.46%.

(j)

Includes interest expense. Without this expense the ratio of net expenses would have been 0.95% and the ratio of gross expenses would have been 94.12%.

 

See accompanying notes to financial statements.

 

57  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Mirova U.S. Sustainable Equity Fund—Class A  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
     Period Ended
December 31,
2020*
  

Net asset value, beginning of the period

    $ 12.57     $ 10.21     $ 10.00  
  

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment loss(a)

      (0.00 )(b)      (0.04 )      (0.00 )(b) 

Net realized and unrealized gain (loss)

      (3.20 )      3.06       0.21  
  

 

 

    

 

 

    

 

 

  

Total from Investment Operations

      (3.20 )      3.02       0.21  
  

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.00 )(b)      —  

Net realized capital gains

      (0.42 )      (0.66 )      —  
  

 

 

    

 

 

    

 

 

  

Total Distributions

      (0.42 )      (0.66 )      —  
  

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

    $ 8.95     $ 12.57     $ 10.21  
  

 

 

    

 

 

    

 

 

  

Total return(c)(d)

      (25.98 )%(e)      29.65 %      2.10 %(e) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 79     $ 12     $ 1  

Net expenses(f)

      1.05 %(g)      1.05 %      1.05 %(g) 

Gross expenses

      8.04 %(g)      8.99 %      23.61 %(g) 

Net investment loss

      (0.08 )%(g)      (0.31 )%      (0.73 )%(g) 

Portfolio turnover rate

      3 %      9 %      0 % 

 

 

*

From commencement of operations on December 15, 2020 through December 31, 2020.

(a)

Per share net investment loss has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

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.

 

|  58

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Mirova U.S. Sustainable Equity Fund—Class C  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021
      Period Ended
December 31,
2020*
  

Net asset value, beginning of the period

    $ 12.47     $ 10.21      $ 10.00  
  

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment loss(a)

      (0.04 )      (0.12 )       (0.01 ) 

Net realized and unrealized gain (loss)

      (3.17 )      3.04        0.22  
  

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (3.21 )      2.92        0.21  
  

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net realized capital gains

      (0.42 )      (0.66 )       —  
  

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 8.84     $ 12.47      $ 10.21  
  

 

 

    

 

 

     

 

 

  

Total return(b)(c)

      (26.28 )%(d)      28.62 %       2.10 %(d) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 75     $ 101      $ 1  

Net expenses(e)

      1.80 %(f)      1.80 %       1.80 %(f) 

Gross expenses

      8.97 %(f)      9.37 %       24.34 %(f) 

Net investment loss

      (0.88 )%(f)      (0.91 )%       (1.45 )%(f) 

Portfolio turnover rate

      3 %      9 %       0 % 

 

 

*

From commencement of operations on December 15, 2020 through December 31, 2020.

(a)

Per share net investment loss 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)

A contingent deferred sales charge for Class C shares is not reflected in total return calculations.

(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.

 

59  |

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Mirova U.S. Sustainable Equity Fund—Class N  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		      Period Ended
December 31,
2020*		  

Net asset value, beginning of the period

    $ 12.59     $ 10.21      $ 10.00  
  

 

 

    

 

 

     

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income (loss)(a)

      0.01       0.01        (0.00 )(b) 

Net realized and unrealized gain (loss)

      (3.20 )      3.05        0.21  
  

 

 

    

 

 

     

 

 

  

Total from Investment Operations

      (3.19 )      3.06        0.21  
  

 

 

    

 

 

     

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.02 )       —  

Net realized capital gains

      (0.42 )      (0.66 )       —  
  

 

 

    

 

 

     

 

 

  

Total Distributions

      (0.42 )      (0.68 )       —  
  

 

 

    

 

 

     

 

 

  

Net asset value, end of the period

    $ 8.98     $ 12.59      $ 10.21  
  

 

 

    

 

 

     

 

 

  

Total return(c)

      (25.86 )%(d)      29.99 %       2.10 %(d) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 3,489     $ 4,893      $ 5,106  

Net expenses(e)

      0.75 %(f)      0.75 %       0.75 %(f) 

Gross expenses

      4.58 %(f)      3.50 %       17.07 %(f) 

Net investment income (loss)

      0.17 %(f)      0.06 %       (0.39 )%(f) 

Portfolio turnover rate

      3 %      9 %       0 % 

 

*

From commencement of operations on December 15, 2020 through December 31, 2020.

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

Had certain expenses not been waived/reimbursed during the period, total returns would have been lower.

(d)

Periods less than one year are not annualized.

(e)

The investment adviser agreed to waive its fees and/or reimburse a portion of the Fund’s expenses during the period. Without this waiver/reimbursement, expenses would have been higher.

(f)

Computed on an annualized basis for periods less than one year.

 

See accompanying notes to financial statements.

 

|  60

Financial Highlights (continued)

 

For a share outstanding throughout each period.

 

     Mirova U.S. Sustainable Equity Fund—Class Y  
     Six Months
Ended
June 30,
2022
(Unaudited)		     Year Ended
December 31,
2021		     Period Ended
December 31,
2020*		  

Net asset value, beginning of the period

    $ 12.59     $ 10.21     $ 10.00  
  

 

 

    

 

 

    

 

 

  

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

 

Net investment income (loss)(a)

      0.01       (0.00 )(b)      (0.00 )(b) 

Net realized and unrealized gain (loss)

      (3.21 )      3.06       0.21  
  

 

 

    

 

 

    

 

 

  

Total from Investment Operations

      (3.20 )      3.06       0.21  
  

 

 

    

 

 

    

 

 

  

LESS DISTRIBUTIONS FROM:

 

Net investment income

      —       (0.02 )      —  

Net realized capital gains

      (0.42 )      (0.66 )      —  
  

 

 

    

 

 

    

 

 

  

Total Distributions

      (0.42 )      (0.68 )      —  
  

 

 

    

 

 

    

 

 

  

Net asset value, end of the period

    $ 8.97     $ 12.59     $ 10.21  
  

 

 

    

 

 

    

 

 

  

Total return(c)

      (25.94 )%(d)      29.97 %      2.10 %(d) 

RATIOS TO AVERAGE NET ASSETS:

 

Net assets, end of the period (000’s)

    $ 36     $ 44     $ 1  

Net expenses(e)

      0.80 %(f)      0.80 %      0.80 %(f) 

Gross expenses

      7.95 %(f)      8.79 %      23.24 %(f) 

Net investment income (loss)

      0.12 %(f)      (0.01 )%      (0.36 )%(f) 

Portfolio turnover rate

      3 %      9 %      0 % 

 

 

*

From commencement of operations on December 15, 2020 through December 31, 2020.

(a)

Per share net investment income (loss) has been calculated using the average shares outstanding during the period.

(b)

Amount rounds to less than $0.01 per share.

(c)

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.

 

61  |

Notes to Financial Statements

 

June 30, 2022 (Unaudited)

 

1.  Organization.  Gateway Trust and Natixis Funds Trust I (the “Trusts” and each a “Trust”) are each organized as a Massachusetts business trust. Each Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Each Declaration of Trust permits the Board of Trustees to authorize the issuance of an unlimited number of shares of the Trust in multiple series. The financial statements for certain funds of the Trusts are presented in separate reports. The following funds (individually, a “Fund” and collectively, the “Funds”) are included in this report:

Gateway Trust:

Gateway Fund

Gateway Equity Call Premium Fund

Natixis Funds Trust I:

Mirova Global Green Bond Fund (the “Global Green Bond Fund”)

Mirova Global Sustainable Equity Fund (the “Global Sustainable Equity Fund”)

Mirova International Sustainable Equity Fund (the “International Sustainable Equity Fund”)

Mirova U.S. Sustainable Equity Fund (the “U.S. Sustainable Equity Fund”)

Each Fund is a diversified investment company.

Each Fund offers Class A, Class C, Class N and Class Y shares, except for Global Green Bond Fund and International Sustainable Equity Fund, which do not offer Class C shares.

Class A shares are sold with a maximum front-end sales charge of 5.75% for all Funds except for Global Green Bond Fund which are sold with a maximum front-end sales charge of 4.25%. Class C shares do not pay a front-end sales charge, pay higher Rule 12b-1 fees than Class A shares for eight years (at which point they automatically convert to Class A shares) (prior to May 1, 2021, Class C shares automatically converted to Class A shares after ten years) and may be subject to a contingent deferred sales charge (“CDSC”) of 1.00% if those shares are redeemed within one year of acquisition, except for reinvested distributions. Class N and Class Y shares do not pay a front-end sales charge, a CDSC or Rule 12b-1 fees. Class N shares are offered with an initial minimum investment of $1,000,000. Class Y shares are offered with an initial minimum investment of $100,000. Certain categories of investors are exempted from the minimum investment amounts for Class N and Class Y as outlined in the relevant Funds’ prospectus.

Most expenses can be directly attributed to a Fund. Expenses which cannot be directly attributed to a Fund are generally apportioned based on the relative net assets of each of the Funds in Natixis Funds Trust I, Natixis Funds Trust II, Natixis Funds Trust IV and Gateway Trust (“Natixis Funds Trusts”), Loomis Sayles Funds I and Loomis Sayles Funds II (“Loomis Sayles Funds Trusts”) and Natixis ETF Trust and Natixis ETF Trust II (“Natixis ETF Trusts”). Expenses of a Fund are borne pro rata by the holders of each class of shares, except that each class bears expenses unique to that class (such as the Rule 12b-1 fees applicable to Class A and Class C), and transfer agent fees are borne collectively for Class A, Class C and Class Y, and individually for Class N. In addition, each class votes as a class only with respect to its own Rule 12b-1 Plan. Shares of each class would receive their pro rata share of the net assets of the Fund if the Fund were liquidated. The Trustees approve separate distributions from net investment income on each class of shares.

2.  Significant Accounting Policies.  The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements. The Funds’ financial statements follow the accounting and reporting guidelines provided for investment companies and are prepared in accordance with accounting principles generally accepted in the United States of America which require the use of management estimates that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Management has evaluated the events and transactions subsequent to period-end through the date the financial statements were issued and has determined that there were no material events that would require disclosure in the Funds’ financial statements.

a.  Valuation.  Fund securities and other investments are valued at market value based on market quotations obtained or determined by independent pricing services recommended by the adviser 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 of closed-end investment companies and exchange-traded funds) are valued at the last sale price quoted on the exchange where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. Securities traded on the NASDAQ Global Select Market, NASDAQ Global Market and NASDAQ Capital Market are valued at the NASDAQ Official Closing Price (“NOCP”), or if lacking an NOCP, at the most recent bid quotations on the applicable NASDAQ Market. Unlisted equity securities (except unlisted preferred equity securities) are valued at the last sale price quoted in the market where they are traded most extensively or, if there is no reported sale during the day, the closing bid quotation as reported by an independent pricing service. If there is no last sale price or closing bid quotation available,

 

|  62

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

unlisted equity securities will be valued using evaluated bids furnished by an independent pricing service, if available. In some foreign markets, an official close price and a last sale price may be available from the foreign exchange or market. In those cases, the official close price is used. Debt securities and unlisted preferred equity securities are valued based on evaluated bids furnished to the 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. Futures contracts are valued at the most recent settlement price on the exchange on which the adviser believes that, over time, they are traded most extensively. Domestic exchange-traded index option contracts are valued at the mean of the National Best Bid and Offer quotations as determined by the Options Price Reporting Authority.

Fund securities and other investments for which market quotations are not readily available are valued at fair value as determined in good faith by the adviser pursuant to procedures approved by the Board of Trustees. The Funds may also value securities and other investments at fair value in other circumstances such as when extraordinary events occur after the close of a foreign market but prior to the close of the New York Stock Exchange. This may include situations relating to a single issuer (such as a declaration of bankruptcy or a delisting of the issuer’s security from the primary market on which it has traded) as well as events affecting the securities markets in general (such as market disruptions or closings and significant fluctuations in U.S. and/or foreign markets). When fair valuing its securities or other investments, the Funds may, among other things, use modeling tools or other processes that may take into account factors such as securities or other market activity and/or significant events that occur after the close of the foreign market and before the time the Fund’s net asset value (“NAV”) is calculated. Fair value pricing may require subjective determinations about the value of a security, and fair values used to determine a Fund’s NAV may differ from quoted or published prices, or from prices that are used by others, for the same securities. In addition, the use of fair value pricing may not always result in adjustments to the prices of securities held by a Fund.

As of June 30, 2022, securities held by the Funds were fair valued as follows:

 

Fund

   

Equity securities1

     

Percentage of
Net Assets

  

Global Sustainable Equity Fund

    $ 336,101,402        37.0 % 

International Sustainable Equity Fund

      17,838,681        91.6 % 

 

1

Certain foreign equity securities were fair valued pursuant to procedures approved by the Board of Trustees as events occurring after the close of the foreign market were believed to materially affect the value of those securities.

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, are recorded on the ex-dividend date, or in the case of certain foreign securities, as soon as a Fund is notified, and interest income is recorded on an accrual basis. Dividends reinvested and stock dividends are reflected as non-cash dividends on the Statements of Operations. Interest income is increased by the accretion of discount and decreased by the amortization of premium, if applicable. For securities with paydown provisions, principal payments received are treated as a proportionate reduction to the cost basis of the securities, and excess or shortfall amounts are recorded as income. Distributions received from investments in securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments or as a realized gain, respectively. The calendar year-end amounts of ordinary income, capital gains, and return of capital included in distributions received from the Funds’ investments in real estate investment trusts (“REITs”) are reported to the Funds after the end of the fiscal year; accordingly, the Funds estimate these amounts for accounting purposes until the characterization of REIT distributions is reported to the Funds after the end of the fiscal year. Estimates are based on the most recent REIT distribution information available. In determining net gain or loss on securities sold, the cost of securities has been determined on an identified cost basis. Investment income, non-class specific expenses and realized and unrealized gains and losses are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund.

c.  Foreign Currency Translation.  The books and records of the Funds are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars, 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 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

 

63  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

foreign exchange gains or losses are disclosed in the Statements of Operations. For federal income tax purposes, net realized foreign exchange gains or losses are characterized as ordinary income, and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.

The values of investment securities are presented at the foreign exchange rates prevailing at the end of the period for financial reporting purposes. Net realized and unrealized gains or losses on investments reported in the Statements of Operations reflect gains or losses resulting from changes in exchange rates and fluctuations which arise due to changes in market prices of investment securities. For federal income tax purposes, a portion of the net realized gain or loss on investments arising from changes in exchange rates, which is reflected in the Statements of Operations, may be characterized as ordinary income and may, if the Funds have net losses, reduce the amount of income available to be distributed by the Funds.

For the six months ended June 30, 2022, the amount of income available to be distributed by Global Green Bond Fund has been reduced by $180,691 as a result of losses arising from changes in exchange rates.

The Funds may use foreign currency exchange contracts to facilitate transactions in foreign-denominated investments. Losses may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts’ terms.

d.  Futures Contracts.  A Fund may enter into futures contracts. Futures contracts are agreements between two parties to buy and sell a particular instrument or index for a specified price on a specified future date.

When a Fund enters into a futures contract, it is required to deposit with (or for the benefit of) its broker an amount of cash or short-term high-quality securities as “initial margin.” As the value of the contract changes, the value of the futures contract position increases or declines. Subsequent payments, known as “variation margin,” are made or received by a Fund, depending on the price fluctuations in the fair value of the contract and the value of cash or securities on deposit with the broker. Gross unrealized appreciation (depreciation) on futures contracts is recorded in the Statements of Assets and Liabilities as an asset (liability). The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statements of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized gains (losses). Realized gain or loss on a futures position is equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, minus brokerage commissions. When a Fund enters into a futures contract certain risks may arise, such as illiquidity in the futures market, which may limit a Fund’s ability to close out a futures contract prior to settlement date, and unanticipated movements in the value of securities or interest rates. Futures contracts outstanding at the end of the period, if any, are listed in each applicable Fund’s Portfolio of Investments.

Futures contracts are exchange-traded. Exchange-traded futures contracts are standardized and are settled through a clearing house with fulfillment supported by the credit of the exchange. Therefore, counterparty credit risks to the Funds are reduced; however, in the event that a counterparty enters into bankruptcy, a Fund’s claim against initial/variation margin on deposit with the counterparty may be subject to terms of a final settlement in bankruptcy court.

e.  Option Contracts.  Gateway Fund and Gateway Equity Call Premium Fund’s investment strategies make use of exchange-traded options. Exchange-traded options are standardized contracts and are settled through a clearing house with fulfillment supported by the credit of the exchange. Therefore, counterparty credit risks to a Fund are reduced.

When a Fund writes an index call option, an amount equal to the net premium received (the premium less commission) is recorded as a liability and is subsequently adjusted to the current value until the option expires or a Fund enters into a closing purchase transaction. When an index call option expires or a Fund enters into a closing purchase transaction, the difference between the net premium received and any amount paid at expiration or on effecting a closing purchase transaction, including commission, is treated as a realized gain or, if the net premium received is less than the amount paid, as a realized loss. A Fund, as writer of an index call option, bears the risk of an unfavorable change in the market value of the index underlying the written option.

When a Fund purchases an index put option, it pays a premium and the index put option is subsequently marked-to-market to reflect current value until the option expires or a Fund enters into a closing sale transaction. Premiums paid for purchasing index put options which expire are treated as realized losses. When a Fund enters into a closing sale transaction, the difference between the premium paid and the proceeds of the closing sale transaction is treated as a realized gain or loss. The risk associated with purchasing index put options is limited to the premium paid. Option contracts outstanding at the end of the period, if any, are listed in each applicable Fund’s Portfolio of Investments.

f.  Due from Brokers.  Transactions and positions in certain futures contracts are maintained and cleared by registered U.S. broker/dealers pursuant to customer agreements between a Fund and the various broker/dealers. The due from brokers balance in the Statements of Assets and Liabilities for Global Green Bond Fund represents cash pledged as collateral for futures contracts (including variation margin, as applicable). In certain circumstances the Fund’s use of cash held at brokers is restricted by regulation or broker mandated limits.

 

|  64

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

g.  Federal and Foreign Income Taxes.  The Trusts treat each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. Management has performed an analysis of each Fund’s tax positions for the open tax years as of June 30, 2022 and has concluded that no provisions for income tax are required. The Funds’ federal tax returns for the prior three fiscal years, where applicable, remain subject to examination by the Internal Revenue Service. Management is not aware of any events that are reasonably possible to occur in the next six months that would result in the amounts of any unrecognized tax benefits significantly increasing or decreasing for the Funds. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws and accounting regulations and interpretations thereof.

A Fund may be subject to foreign withholding taxes on investment income and taxes on capital gains on investments that are accrued and paid based upon the Fund’s understanding of the tax rules and regulations that exist in the countries in which the Fund invests. Foreign withholding taxes on dividend and interest income are reflected on the Statements of Operations as a reduction of investment income, net of amounts that have been or are expected to be reclaimed and paid. 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 are expected to be filed and paid 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.

Certain Funds have filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries (EU reclaims) and may continue to make such filings when it is determined to be in the best interest of the Funds and their shareholders. These filings are subject to various administrative proceedings by the local jurisdictions’ tax authorities within the European Union, as well as a number of related judicial proceedings. EU reclaims are recognized by a Fund when deemed more likely than not to be collected, and are reflected as a reduction of foreign taxes withheld in the Statements of Operations. Any related receivable is reflected as tax reclaims receivable in the Statements of Assets and Liabilities. Under certain circumstances, EU reclaims may be subject to closing agreements with the Internal Revenue Service (IRS), which may materially reduce the reclaim amounts realized by the Funds. Fees and expenses associated with closing agreements will be reflected in the Statements of Operations when it is determined that a closing agreement with the IRS is required.

h.  Dividends and Distributions to Shareholders.  Dividends and distributions are recorded on the ex-dividend date. The timing and characterization of certain income and capital gain distributions are determined in accordance with federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. Permanent differences are primarily due to differing treatments for book and tax purposes of items such as premium amortization, futures contract mark-to-market, non-deductible expenses, capital gain distribution received, return of capital distributions received, distribution re-designations and foreign currency gains and losses. 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, deferred Trustees’ fees, premium amortization, future contract mark-to-market, capital gain distribution received and return of capital distributions received. Amounts of income and capital gain available to be distributed on a tax basis are determined annually, and at other times during the Funds’ fiscal year as may be necessary to avoid knowingly declaring and paying a return of capital distribution. Distributions from net investment income and short-term capital gains are considered to be distributed from ordinary income for tax purposes.

The tax characterization of distributions is determined on an annual basis. The tax character of distributions paid to shareholders during the year ended December 31, 2021 was as follows:

 

     

2021 Distributions

  

Fund

   

Ordinary
Income

     

Long-Term
Capital
Gains

     

Total

  

Gateway Fund

    $ 49,184,281      $ —      $ 49,184,281  

Gateway Equity Call Premium Fund

      544,913        —        544,913  

Global Green Bond Fund

      901,804        537,858        1,439,662  

Global Sustainable Equity Fund

      14,908,515        109,185,274        124,093,789  

International Sustainable Equity Fund

      409,826        570,795        980,621  

U.S. Sustainable Equity Fund

      272,938        —        272,938  

 

65  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

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 in per-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, 2021, capital loss carryforwards and late-year ordinary and post-October capital loss deferrals were as follows:

 

    

Gateway
Fund

    

Gateway
Equity Call
Premium Fund

    

Global
Green
Bond Fund

    

Global
Sustainable
Equity Fund

    

International
Sustainable
Equity Fund

    

U.S.
Sustainable
Equity Fund

  

Capital loss carryforward:

            

Short-term:

            

No expiration date

   $ (1,184,785,617 )    $ (8,151,305 )    $ —     $ —     $ —     $ —  

Long-term:

            

No expiration date

     (573,854,387 )      (7,210,074 )      —       —       —       —  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total capital loss carryforward

     (1,758,640,004 )      (15,361,379 )      —       —       —       —  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Late-year ordinary and post-October capital loss deferrals*

   $ —     $ —     $   —     $   —     $ (189,581 )    $   —  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

*

Under current tax law, capital losses, foreign currency losses, and losses on passive foreign investment companies and contingent payment debt instruments after October 31 or December 31, as applicable, may be deferred and treated as occurring on the first day of the following taxable year. International Sustainable Equity Fund is deferring capital and foreign currency losses.

As of June 30, 2022, unrealized appreciation (depreciation) on a tax basis was approximately as follows:

 

    

Gateway
Fund

    

Gateway
Equity Call
Premium Fund

    

Global
Green
Bond Fund

    

Global
Sustainable
Equity Fund

    

International
Sustainable
Equity Fund

    

U.S.
Sustainable
Equity Fund

  

Unrealized appreciation (depreciation)

            

Investments

   $ 3,521,896,487     $ 25,986,848     $ (4,537,927 )    $ (140,838,405 )    $ (3,072,414 )    $ (230,800 ) 

Foreign currency translations

     332       4       (2,267,153 )      (82,370 )      (8,720 )      —  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total unrealized appreciation (depreciation)

   $ 3,521,896,819     $ 25,986,852     $ (6,805,080 )    $ (140,920,775 )    $ (3,081,134 )    $ (230,800 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

As of June 30, 2022, the tax cost of investments (including derivatives, if applicable) and unrealized appreciation (depreciation) on a federal tax basis were as follows:

 

    

Gateway
Fund

    

Gateway
Equity Call
Premium Fund

    

Global
Green
Bond Fund

    

Global
Sustainable
Equity Fund

    

International
Sustainable
Equity Fund

    

U.S.
Sustainable
Equity Fund

  

Federal tax cost

   $ 3,724,497,747     $ 110,748,234     $ 43,950,809     $ 1,042,654,409     $ 22,259,475     $ 3,766,202  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross tax appreciation

   $ 3,682,798,810     $ 29,730,897     $ 687,003     $ 28,809,309     $ 776,615     $ 254,060  

Gross tax depreciation

     (160,902,323 )      (3,744,049 )      (7,440,813 )      (169,647,714 )      (3,849,029 )      (484,860 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net tax appreciation (depreciation)

   $ 3,521,896,487     $ 25,986,848     $ (6,753,810 )    $ (140,838,405 )    $ (3,072,414 )    $ (230,800 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Amounts in the table above exclude certain adjustments that will be made at the end of the Fund’s fiscal year for tax purposes. Adjustments may include, but are not limited to, wash sales and derivatives mark-to-market. The difference between these amounts and those reported in the table above are primarily attributable to foreign currency mark-to-market.

i.  Repurchase Agreements.  Each Fund may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, under which each Fund acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. It is each Fund’s policy that the market value of the collateral for repurchase agreements be at least equal to 102% of the repurchase price, including interest. Certain repurchase agreements are tri-party arrangements whereby the collateral is held in a segregated account for the benefit of the Fund and on behalf of the counterparty. Repurchase agreements could involve certain risks in the event of default or insolvency of the counterparty, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying securities. As of June 30, 2022, each Fund, as applicable, had investments in repurchase agreements for which the value of

 

|  66

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

the related collateral exceeded the value of the repurchase agreement. The gross value of repurchase agreements is included in the Statements of Assets and Liabilities for financial reporting purposes.

j.  Indemnifications.  Under the Trusts’ organizational documents, their 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.

The following is a summary of the inputs used to value the Funds’ investments as of June 30, 2022, at value:

Gateway Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks(a)

    $ 6,885,039,357      $ —      $   —      $ 6,885,039,357  

Purchased Options(a)

      116,109,190        —        —        116,109,190  

Short-Term Investments

      —        160,482,190        —        160,482,190  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 7,001,148,547      $ 160,482,190      $   —      $ 7,161,630,737  
  

 

 

     

 

 

     

 

 

     

 

 

  

Liability Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Written Options(a)

    $ (93,978,822)      $   —      $   —      $ (93,978,822)  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

Gateway Equity Call Premium Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks(a)

    $ 126,864,300      $ —      $   —      $ 126,864,300  

Short-Term Investments

      —        8,166,855        —        8,166,855  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 126,864,300      $ 8,166,855      $   —      $ 135,031,155  
  

 

 

     

 

 

     

 

 

     

 

 

  

Liability Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Written Options(a)

    $ (1,546,788)      $   —      $   —      $ (1,546,788)  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

 

67  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

Global Green Bond Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Bonds and Notes(a)

    $ —      $ 35,176,130      $   —      $ 35,176,130  

Short-Term Investments

      —        1,488,295        —        1,488,295  

Futures Contracts (unrealized appreciation)

      608,855        —        —        608,855  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 608,855      $ 36,664,425      $   —      $ 37,273,280  
  

 

 

     

 

 

     

 

 

     

 

 

  

Liability Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Futures Contracts (unrealized depreciation)

    $ (76,281)      $   —      $   —      $ (76,281)  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

Global Sustainable Equity Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks

            

Belgium

    $ —      $ 14,280,611      $ —      $ 14,280,611  

Denmark

      —        76,697,794        —        76,697,794  

France

      —        26,451,261        —        26,451,261  

Germany

      —        49,036,612        —        49,036,612  

Hong Kong

      —        41,348,857        —        41,348,857  

Japan

      —        47,794,177        —        47,794,177  

Netherlands

      —        28,502,691        —        28,502,691  

Spain

      —        27,858,635        —        27,858,635  

United Kingdom

      —        24,130,764        —        24,130,764  

All Other Common Stocks(a)

      550,298,661        —        —        550,298,661  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      550,298,661        336,101,402        —        886,400,063  
  

 

 

     

 

 

     

 

 

     

 

 

  

Short-Term Investments

      —        15,415,941        —        15,415,941  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 550,298,661      $ 351,517,343      $   —      $ 901,816,004  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

 

|  68

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

International Sustainable Equity Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks

            

Australia

    $ —      $ 225,307      $ —      $ 225,307  

Belgium

      —        1,010,756        —        1,010,756  

Denmark

      —        2,316,871        —        2,316,871  

France

      —        2,406,643        —        2,406,643  

Germany

      —        1,204,093        —        1,204,093  

Hong Kong

      —        1,656,629        —        1,656,629  

Ireland

      —        771,040        —        771,040  

Japan

      —        2,636,159        —        2,636,159  

Netherlands

      —        1,489,386        —        1,489,386  

Norway

      —        112,037        —        112,037  

Spain

      —        713,743        —        713,743  

Switzerland

      —        495,055        —        495,055  

United Kingdom

      —        2,800,962        —        2,800,962  

All Other Common Stocks(a)

      1,034,865        —        —        1,034,865  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Common Stocks

      1,034,865        17,838,681        —        18,873,546  
  

 

 

     

 

 

     

 

 

     

 

 

  

Short-Term Investments

      —        313,515        —        313,515  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 1,034,865      $ 18,152,196      $   —      $ 19,187,061  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

U.S. Sustainable Equity Fund

Asset Valuation Inputs

 

Description

   

Level 1

     

Level 2

     

Level 3

     

Total

  

Common Stocks(a)

    $ 3,535,402      $   —      $   —      $ 3,535,402  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

Details of the major categories of the Fund’s investments are reflected within the Portfolio of Investments.

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 the Funds used during the period include written index call options, purchased index put options and futures contracts.

Through the use of index options, Gateway Fund and Gateway Equity Call Premium Fund intends that its risk management strategy will reduce the volatility inherent in equity investments while also allowing for more participation in equity returns than hybrid investments. Each Fund seeks to provide an efficient trade-off between risk and reward, where risk is characterized by volatility or fluctuations in value over time. To meet this objective, the Funds invest in a broadly diversified portfolio of common stocks, while also writing index call options and, for Gateway Fund, purchasing index put options. Writing index call options can reduce a Fund’s volatility, provide a steady cash flow and be an important source of a Fund’s return, although it also may reduce a Fund’s ability to profit from increases in the value of its equity portfolio. Buying index put options, can protect a 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. For Gateway Fund, 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 Fund with the majority of the returns associated with equity market investments while exposing investors to less risk than other equity investments. For Gateway Equity Call Premium Fund, the combination of the diversified stock portfolio and the steady cash flow from writing of index call options is intended to moderate the volatility of returns relative to an all-equity portfolio. During the six months ended June 30, 2022, 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 these strategies.

Global Green Bond Fund seeks to provide total return, through a combination of capital appreciation and current income, by investing in green bonds. The Fund pursues its objective by primarily investing in fixed-income securities. In connection with its principal

 

69  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

investment strategies, the Fund may also invest in various types of futures contracts for investment purposes. During the six months ended June 30, 2022, Global Green Bond Fund used U.S. and foreign government bond futures to gain yield curve exposure.

Global Green Bond Fund is subject to the risk that changes in interest rates will affect the value of the Fund’s investments in fixed income securities. The Fund will be subject to increased interest rate risk to the extent that it invests in fixed-income securities with longer maturities or durations, as compared to investing in fixed-income securities with shorter maturities or durations. The Fund may use futures contracts to hedge against changes in interest rates and to manage duration without having to buy or sell portfolio securities. During the six months ended June 30, 2022, Global Green Bond Fund used U.S. and foreign government bond futures to manage duration.

Global Green Bond Fund is also subject to the risk that changes in foreign currency exchange rates will have an unfavorable effect on the value of Fund assets denominated in foreign currencies. The Fund may use futures contracts for hedging purposes to protect the value of the Fund’s holdings of foreign securities. During the six months ended June 30, 2022, Global Green Bond Fund used currency futures for hedging purposes.

The following is a summary of derivative instruments for Gateway Fund as of June 30, 2022, as reflected within the Statements of Assets and Liabilities:

 

Assets

   

Investments
at value1

  

Exchange-traded asset derivatives

 

Equity contracts

    $ 116,109,190  

Liabilities

   

Options written
at value

  

Exchange-traded liability derivatives

 

Equity contracts

    $ (93,978,822 ) 

 

1 

Represents purchased options, at value.

Transactions in derivative instruments for Gateway Fund during the six months ended June 30, 2022, as reflected within the Statements of Operations were as follows:

 

Net Realized Gain (Loss) on:

   

Investments2

     

Options written

  

Equity contracts

    $ 116,459,727      $ 400,149,968  

Net Change in Unrealized
Appreciation (Depreciation) on:

   

Investments2

     

Options written

  

Equity contracts

    $ 46,551,044      $ 97,009,787  

 

2 

Represents realized gain and change in unrealized appreciation (depreciation), respectively, for purchased options during the period.

The following is a summary of derivative instruments for Gateway Equity Call Premium Fund as of June 30, 2022, as reflected within the Statements of Assets and Liabilities:

 

Liabilities

   

Options written
at value

  

Exchange-traded liability derivatives

 

Equity contracts

    $ (1,546,788 ) 

Transactions in derivative instruments for Gateway Equity Call Premium Fund during the six months ended June 30, 2022, as reflected within the Statements of Operations were as follows:

 

Net Realized Gain (Loss) on:

   

Options written

  

Equity contracts

    $ 6,218,536  

Net Change in Unrealized
Appreciation (Depreciation) on:

   

Options written

  

Equity contracts

    $ 1,862,025  

 

|  70

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

The following is a summary of derivative instruments for Global Green Bond Fund as of June 30, 2022, as reflected within the Statements of Assets and Liabilities:

 

Assets

   

Unrealized
appreciation on
futures contracts

  

Exchange-traded asset derivatives

 

Foreign exchange contracts

    $ 608,855  

Liabilities

   

Unrealized
depreciation on
futures contracts

  

Exchange-traded liability derivatives

 

Interest rate contracts

    $ (76,281 ) 

Transactions in derivative instruments for Global Green Bond Fund during the six months ended June 30, 2022, as reflected within the Statements of Operations were as follows:

 

Net Realized Gain (Loss) on:

   

Futures contracts

  

Interest rate contracts

    $ (429,519 ) 

Foreign exchange contracts

      1,650,523  
  

 

 

  

Total

    $ 1,221,004  
  

 

 

  

Net Change in Unrealized
Appreciation (Depreciation) on:

   

Futures contracts

  

Interest rate contracts

    $ 957,249  

Foreign exchange contracts

      49,555  
  

 

 

  

Total

    $ 1,006,804  
  

 

 

  

As the Funds value their derivatives at fair value and recognize changes in fair value through the Statements of Operations, they do not qualify for hedge accounting under authoritative guidance for derivative instruments. The Funds’ investments in derivatives may represent an economic hedge; however, they are considered to be non-hedge transactions for the purpose of these disclosures.

The volume of option contract activity as a percentage of investments in common stocks for Gateway Fund based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended June 30, 2022:

 

Gateway Fund

   

Call Options
Written*

    

Put Options
Purchased*

  

Average Notional Amount Outstanding

      99.03 %      78.44 % 

Highest Notional Amount Outstanding

      99.15 %      99.03 % 

Lowest Notional Amount Outstanding

      98.88 %      68.68 % 

Notional Amount Outstanding as of June 30, 2022

      99.15 %      69.41 % 

The volume of option contract activity as a percentage of investments in common stocks for Gateway Equity Call Premium Fund, based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended June 30, 2022:

 

Gateway Equity Call Premium Fund

   

Call Options

Written*

  

Average Notional Amount Outstanding

      98.95 % 

Highest Notional Amount Outstanding

      99.06 % 

Lowest Notional Amount Outstanding

      98.74 % 

Notional Amount Outstanding as of June 30, 2022

      99.06 % 

 

*

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.

 

71  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

The volume of futures contract activity as a percentage of net assets for Global Green Bond Fund, based on month-end notional amounts outstanding during the period, at absolute value, was as follows for the six months ended June 30, 2022:

 

Global Green Bond Fund

   

Futures

  

Average Notional Amount Outstanding

      84.46 % 

Highest Notional Amount Outstanding

      89.86 % 

Lowest Notional Amount Outstanding

      75.75 % 

Notional Amount Outstanding as of June 30, 2022

      76.06 % 

Notional amounts outstanding at the end of the prior period are included in the average notional amount outstanding.

Unrealized gain and/or loss on open futures is recorded in the Statements of Assets and Liabilities. The aggregate notional values of futures contracts are not recorded in the Statements of Assets and Liabilities, and therefore are not included in the Funds’ net assets.

Counterparty risk is managed based on policies and procedures established by the Fund’s adviser. Such policies and procedures may include, but are not limited to, minimum counterparty credit rating requirements, monitoring of counterparty credit default swap spreads and posting of collateral. With exchange-traded derivatives, there is minimal counterparty credit risk to the Fund because the exchange’s clearing house, as counterparty to these instruments, stands between the buyer and the seller of the contract. Credit risk still exists in exchange-traded derivatives with respect to initial and variation margin that is held in a broker’s customer accounts. While brokers typically are required to segregate customer margin for exchange-traded derivatives from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the broker for all its customers, U.S. bankruptcy laws will typically allocate that shortfall on a pro rata basis across all of the broker’s customers, potentially resulting in losses to the Fund. The following table shows the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the Fund would incur if parties to the relevant financial instruments failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the Fund, as of June 30, 2022:

 

Fund

   

Maximum Amount
of Loss - Gross

     

Maximum Amount
of Loss - Net

  

Global Green Bond Fund

    $ 1,251,614      $ 1,251,614  

5.  Purchases and Sales of Securities.  For the six months ended June 30, 2022, purchases and sales of securities (excluding short-term investments, option contracts and including paydowns) were as follows:

 

Fund

   

Purchases

     

Sales

  

Gateway Fund

    $ 869,441,853      $ 436,828,730  

Gateway Equity Call Premium Fund

      51,090,363        1,448,533  

Global Green Bond Fund

      15,750,254        13,577,642  

Global Sustainable Equity Fund

      220,385,624        102,947,061  

International Sustainable Equity Fund

      1,417,168        2,888,683  

U.S. Sustainable Equity Fund

      107,423        358,142  

6.  Management Fees and Other Transactions with Affiliates.

a.  Management Fees.  Gateway Investment Advisers, LLC (“Gateway Advisers”) serves as investment adviser to Gateway Fund and Gateway Equity Call Premium Fund. Gateway Advisers is a subsidiary of Natixis Investment Managers, LLC, 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

      0.60 %      0.55 %      0.53 % 

Gateway Equity Call Premium Fund

      0.58 %      0.58 %      0.58 % 

Mirova US LLC (“Mirova US”) serves as investment adviser to Global Green Bond Fund, Global Sustainable Equity Fund, International Sustainable Equity Fund and U.S. Sustainable Equity Fund. Mirova US is a wholly-owned subsidiary of Mirova, which is in turn a

 

|  72

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

subsidiary of Natixis Investment Managers. Under the terms of the management agreements, each Fund pays a management fee at the following annual rates, calculated daily and payable monthly, based on each Fund’s average daily net assets:

 

Fund

   

Percentage of
Average Daily
Net Assets

  

Global Green Bond Fund

      0.50 % 

Global Sustainable Equity Fund

      0.80 % 

International Sustainable Equity Fund

      0.80 % 

U.S. Sustainable Equity Fund

      0.65 % 

Gateway Advisers and Mirova US have given binding undertakings to the Funds to waive management fees and/or reimburse certain expenses to limit the Funds’ operating expenses, exclusive of acquired fund fees and expenses, brokerage expenses, interest expense, substitute dividend expenses on securities sold short, taxes, organizational and extraordinary expenses such as litigation and indemnification expenses. These undertakings are in effect until April 30, 2023, 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, 2022, the expense limits as a percentage of average daily net assets under the expense limitation agreements 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

      0.93 %      1.68 %      0.63 %      0.68 % 

Global Green Bond Fund

      0.90 %      —       0.60 %      0.65 % 

Global Sustainable Equity Fund

      1.20 %      1.95 %      0.90 %      0.95 % 

International Sustainable Equity Fund

      1.20 %      —       0.90 %      0.95 % 

U.S. Sustainable Equity Fund

      1.05 %      1.80 %      0.75 %      0.80 % 

Gateway Advisers and Mirova US shall be permitted to recover expenses borne under the expense limitation agreements (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 (1) a class’ expense limitation ratio in place at the time such amounts were waived/reimbursed and (2) a class’ current applicable expense limitation ratio, 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, 2022, the management fees and waiver of management fees for each Fund were as follows:

 

Fund

   

Gross
Management Fees

     

Contractual
Waivers of
Management Fees1

     

Net
Management Fees

     

Percentage
of Average
Daily Net Assets

  
  

Gross

     

Net

  

Gateway Fund

    $ 22,435,478      $ —      $ 22,435,478        0.58 %       0.58 % 

Gateway Equity Call Premium Fund

      347,026        132,643        214,383        0.58 %       0.36 % 

Global Green Bond Fund

      106,170        76,456        29,714        0.50 %       0.14 % 

Global Sustainable Equity Fund

      4,050,446        —        4,050,446        0.80 %       0.80 % 

International Sustainable Equity Fund

      100,199        79,952        20,247        0.80 %       0.16 % 

U.S. Sustainable Equity Fund

      13,523        13,523        —        0.65 %       — % 

For the six months ended June 30, 2022, class-specific expenses have been reimbursed as follows:

 

      Reimbursement1  

Fund

   

Class A

     

Class C

     

Class N

     

Class Y

     

Total

  

Gateway Fund

    $ 85,215      $ 3,296      $   —      $ 212,296      $ 300,807  

Global Sustainable Equity Fund

      9,725        3,893        —        199,713        213,331  

 

1 

Waiver/expense reimbursements are subject to possible recovery until December 31, 2023.

 

73  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

In addition, Mirova US reimbursed non-class-specific expenses of U.S. Sustainable Equity Fund in the amount of $68,016 for the six months ended June 30, 2022, which are subject to possible recovery until December 31, 2023.

For the six months ended June 30, 2022, expense reimbursements related to the prior fiscal year were recovered as follows:

 

Fund

   

Recovered
Expenses

  

Gateway Fund

    $ 12,489  

b.  Service and Distribution Fees.  Natixis Distribution, LLC (“Natixis Distribution”), which is a wholly-owned subsidiary of Natixis Investment Managers, LLC, has entered into a distribution agreement with the Trusts. Pursuant to this agreement, Natixis Distribution serves as principal underwriter of the Funds of the Trusts.

Pursuant to Rule 12b-1 under the 1940 Act, the Trusts have adopted a Service Plan relating to each Fund’s Class A shares (the “Class A Plans”) and a Distribution and Service Plan relating to each Fund’s Class C shares (the “Class C Plans”).

Under the Class A Plans, each 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, 2022, the service and distribution fees for each Fund were as follows:

 

     

Service Fees

      Distribution Fees  

Fund

   

Class A

     

Class C

     

Class C

  

Gateway Fund

    $ 1,194,288      $ 126,897      $ 380,690  

Gateway Equity Call Premium Fund

      2,767        1,009        3,027  

Global Green Bond Fund

      8,091        —        —  

Global Sustainable Equity Fund

      45,863        18,350        55,049  

International Sustainable Equity Fund

      469        —        —  

U.S. Sustainable Equity Fund

      46        105        315  

For the six months ended June 30, 2022, Natixis Distribution refunded Gateway Fund $61,250 of prior year Class A service fees paid to Natixis Distribution in excess of amounts subsequently paid to securities dealers or financial intermediaries. Service and distribution fees on the Statements of Operations have been reduced by these amounts.

c.  Administrative Fees.  Natixis Advisors, LLC (“Natixis Advisors”) provides certain administrative services for the Funds and contracts with State Street Bank and Trust Company (“State Street Bank”) to serve as sub-administrator. Pursuant to an agreement among Natixis Funds Trusts, Loomis Sayles Funds Trusts, Natixis ETF Trusts and Natixis Advisors, 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 Trusts, 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 Trusts of $10 million, which is reevaluated on an annual basis.

For the six months ended June 30, 2022, the administrative fees for each Fund were as follows:

 

Fund

   

Administrative
Fees

  

Gateway Fund

    $ 1,704,956  

Gateway Equity Call Premium Fund

      26,501  

Global Green Bond Fund

      9,389  

Global Sustainable Equity Fund

      223,902  

International Sustainable Equity Fund

      5,533  

U.S. Sustainable Equity Fund

      919  

 

|  74

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

d.  Sub-Transfer Agent Fees.  Natixis Distribution has entered into agreements, which include servicing agreements, with financial intermediaries that provide recordkeeping, processing, shareholder communications and other services to customers of the intermediaries that hold positions in the Funds and has agreed to compensate the intermediaries for providing those services. Intermediaries transact with the Funds primarily through the use of omnibus accounts on behalf of their customers who hold positions in the Funds. These services would have been provided by the Funds’ transfer agent and other service providers if the shareholders’ accounts were maintained directly at the Funds’ transfer agent. Accordingly, the Funds have agreed to reimburse Natixis Distribution for all or a portion of the servicing fees paid to these intermediaries. The reimbursement amounts (sub-transfer agent fees) paid to Natixis Distribution are subject to a current per-account equivalent fee limit approved by the Funds’ Board of Trustees, which is based on fees for similar services paid to the Funds’ transfer agent and other service providers. Class N shares do not bear such expenses.

For the six months ended June 30, 2022, the sub-transfer agent fees (which are reflected in transfer agent fees and expenses in the Statements of Operations) for each Fund were as follows:

 

Fund

   

Sub-Transfer
Agent Fees

  

Gateway Fund

    $ 1,991,070  

Gateway Equity Call Premium Fund

      23,952  

Global Green Bond Fund

      19,138  

Global Sustainable Equity Fund

      415,814  

International Sustainable Equity Fund

      1,571  

U.S. Sustainable Equity Fund

      87  

As of June 30, 2022, the Funds owe Natixis Distribution the following reimbursements for sub-transfer agent fees (which are reflected in the Statements of Assets and Liabilities as payable to distributor):

 

Fund

   

Reimbursements
of Sub-Transfer
Agent Fees

  

Gateway Fund

    $ 41,486  

Gateway Equity Call Premium Fund

      525  

Global Green Bond Fund

      388  

Global Sustainable Equity Fund

      8,468  

International Sustainable Equity Fund

      34  

U.S. Sustainable Equity Fund

      63  

Sub-transfer agent fees attributable to Class A, Class C and Class Y are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes.

e.  Commissions.  Commissions (including CDSCs) on Fund shares retained by Natixis Distribution during the six months ended June 30, 2022 was as follows:

 

Fund

   

Commissions

  

Gateway Fund

    $ 24,207  

Gateway Equity Call Premium Fund

      201  

Global Sustainable Equity Fund

      5,444  

International Sustainable Equity Fund

      19  

f.  Trustees Fees and Expenses.  The Trusts do not pay any compensation directly to their officers or Trustees who are directors, officers or employees of Natixis Advisors, Natixis Distribution, Natixis Investment Managers, LLC or their affiliates. The Chairperson of the Board of Trustees receives a retainer fee at the annual rate of $369,000. 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 $210,000. 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, the chairperson of the Audit Committee and the chairperson of the Governance Committee each receive an additional retainer fee at the annual rate of $20,000. 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

 

75  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

allocated among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts 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 Trusts as designated by the participating Trustees. Changes in the value of participants’ deferral accounts are allocated pro rata among the funds in the Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts, 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.

For the six months ended June 30, 2022, net depreciation in the value of participants’ deferral accounts are reflected on the Statements of Operations as a reduction to expenses, as follows:

 

Fund

   

Amount

  

Gateway Fund

    $ (137,961 ) 

Gateway Equity Call Premium Fund

      (5,571 ) 

Global Green Bond Fund

      (1,014 ) 

Global Sustainable Equity Fund

      (312 ) 

Certain officers and employees of Natixis Advisors and affiliates are also officers and/or Trustees of the Trusts.

g.  Affiliated Ownership.  As of June 30, 2022, the percentage of each Fund’s net assets owned by Natixis and affiliates is as follows:

 

Global Green Bond Fund

   

Percentage of
Net Assets

  

Natixis Sustainable Future 2015 Fund

      1.14 % 

Natixis Sustainable Future 2020 Fund

      0.91 % 

Natixis Sustainable Future 2025 Fund

      1.50 % 

Natixis Sustainable Future 2030 Fund

      2.57 % 

Natixis Sustainable Future 2035 Fund

      1.75 % 

Natixis Sustainable Future 2040 Fund

      1.12 % 

Natixis Sustainable Future 2045 Fund

      0.96 % 

Natixis Sustainable Future 2050 Fund

      0.38 % 

Natixis Sustainable Future 2055 Fund

      0.31 % 

Natixis Sustainable Future 2060 Fund

      0.21 % 

Natixis Sustainable Future 2065 Fund

      0.09 % 
  

 

 

  
     10.94 % 

International Sustainable Equity Fund

   

Percentage of
Net Assets

  

Natixis Sustainable Future 2015 Fund

      0.68 % 

Natixis Sustainable Future 2020 Fund

      0.73 % 

Natixis Sustainable Future 2025 Fund

      1.57 % 

Natixis Sustainable Future 2030 Fund

      3.71 % 

Natixis Sustainable Future 2035 Fund

      4.11 % 

Natixis Sustainable Future 2040 Fund

      3.81 % 

Natixis Sustainable Future 2045 Fund

      4.49 % 

Natixis Sustainable Future 2050 Fund

      4.06 % 

Natixis Sustainable Future 2055 Fund

      3.56 % 

Natixis Sustainable Future 2060 Fund

      2.50 % 

Natixis Sustainable Future 2065 Fund

      1.10 % 

Natixis and affiliates

      58.91 % 
  

 

 

  
     89.23 % 

U.S. Sustainable Equity Fund

   

Percentage of
Net Assets

  

Natixis and affiliates

      94.80 % 

 

|  76

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

Investment activities of affiliated shareholders could have material impacts on the Fund.

h.  Reimbursement of Transfer Agent Fees and Expenses.  Natixis Advisors has given a binding contractual undertaking to Gateway Equity Call Premium Fund, Global Green Bond Fund, Global Sustainable Equity Fund, International Sustainable Equity Fund and U.S. Sustainable Equity Fund to reimburse any and all transfer agency expenses for the Funds’ Class N shares. This undertaking is in effect through April 30, 2023, and is not subject to recovery under the expense limitation agreement described above.

For the six months ended June 30, 2022, Natixis Advisors reimbursed the Funds for transfer agency expenses as follows:

 

     

Reimbursement of
Transfer Agency
Expenses

  

Fund

   

Class N

  

Gateway Equity Call Premium Fund

    $ 883  

Global Green Bond Fund

      968  

Global Sustainable Equity Fund

      1,402  

International Sustainable Equity Fund

      997  

U.S. Sustainable Equity Fund

      880  

7.  Class-Specific Transfer Agent Fees and Expenses.  Transfer agent fees and expenses attributable to Class A, Class C and Class Y are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of those classes. Transfer agent fees and expenses attributable to Class N are allocated to Class N.

For the six months ended June 30, 2022, the Funds incurred the following class-specific transfer agent fees and expenses (including sub-transfer agent fees, where applicable):

 

     

Transfer Agent Fees and Expenses

  

Fund

   

Class A

     

Class C

     

Class N

     

Class Y

  

Gateway Fund

    $ 317,441      $ 32,052      $ 2,186      $ 1,930,074  

Gateway Equity Call Premium Fund

      639        243        883        34,783  

Global Green Bond Fund

      4,119        —        968        19,052  

Global Sustainable Equity Fund

      19,849        7,943        1,402        407,199  

International Sustainable Equity Fund

      644        —        997        2,761  

U.S. Sustainable Equity Fund

      631        1,440        880        681  

8.  Line of Credit.  Each Fund, together with certain other funds of Natixis Funds Trusts, Loomis Sayles Funds Trusts and Natixis ETF Trusts, entered into a $500,000,000 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 $500,000,000 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 certain legal fees in connection with the line of credit agreement, which are being amortized over a period of 364 days and are reflected in legal fees 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, 2022, International Sustainable Equity Fund had an average daily balance on the line of credit (for those days on which there were borrowings) of $600,000 at a weighted average interest rate of 2.68%. Interest expense incurred on the line of credit was $268.

9.  Risk.  The Funds’ investments in foreign securities may be subject to greater political, economic, environmental, credit/counterparty and information risks. The Fund’s investments in foreign securities also are subject to foreign currency fluctuations and other foreign currency-related risks. Foreign securities may be subject to higher volatility than U.S. securities, varying degrees of regulation and limited liquidity.

Global markets have experienced periods of high volatility triggered by the Covid-19 pandemic. The impact of this pandemic and any other epidemic or pandemic that may arise in the future could adversely affect the economies of many nations or the entire global economy and the financial performance of individual issuers, sectors, industries, asset classes, and markets in significant and unforeseen ways. Such effects could impair the Funds’ ability to maintain operational standards, disrupt the operations of the Funds’ service providers, adversely affect the value and liquidity of the Funds’ investments and negatively impact the Funds’ performance.

 

77  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions in the region and around the world are impossible to predict, but could be significant and have a severe adverse effect on the region and around the world, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors.

10.  Interest Expense.  The Funds incur interest expense on cash (including foreign currency) overdrafts at the custodian bank and, for Global Green Bond Fund, foreign currency debit balances at brokers. Interest expense incurred for the six months ended June 30, 2022 is reflected on the Statements of Operations.

11.  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, 2022, 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:

 

Fund

   

Number of 5%
Non-Affiliated
Account Holders

     

Percentage of
Non-Affiliated
Ownership

     

Percentage
of Affiliated
Ownership
(Note 6g)

     

Total
Percentage of
Ownership

  

Gateway Equity Call Premium Fund

      3        79.68 %       —        79.68 % 

Global Green Bond Fund

      4        40.68 %       10.94 %       51.62 % 

Global Sustainable Equity Fund

      1        20.50 %       —        20.50 % 

International Sustainable Equity Fund

      1        6.82 %       89.23 %       96.05 % 

Omnibus shareholder accounts for which Natixis Advisors understands that the intermediary has discretion over the underlying shareholder accounts or investment models where a shareholder account may be invested for a non-discretionary customer are included in the table above. For other omnibus accounts, the Funds do not have information on the individual shareholder accounts underlying the omnibus accounts; therefore, there could be other 5% shareholders in addition to those disclosed in the table above.

12.  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, 2022

     

Year Ended
December 31, 2021

  

Gateway Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      1,727,809      $ 66,434,756        4,103,014      $ 159,384,742  

Issued in connection with the reinvestment of distributions

      62,953        2,344,924        100,047        3,909,189  

Redeemed

      (2,039,774 )       (77,553,066 )       (4,696,532 )       (182,041,657 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (249,012 )     $ (8,773,386 )       (493,471 )     $ (18,747,726 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
Class C

 

Issued from the sale of shares

      182,606      $ 7,001,272        455,601      $ 17,700,327  

Issued in connection with the reinvestment of distributions

      —        —        —        —  

Redeemed

      (464,236 )       (17,613,353 )       (1,530,271 )       (58,832,782 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (281,630 )     $ (10,612,081 )       (1,074,670 )     $ (41,132,455 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      4,015,550      $ 153,160,758        5,482,060      $ 215,874,763  

Issued in connection with the reinvestment of distributions

      33,444        1,245,675        44,030        1,726,281  

Redeemed

      (2,734,516 )       (105,096,754 )       (3,197,125 )       (126,136,905 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      1,314,478      $ 49,309,679        2,328,965      $ 91,464,139  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      18,753,494      $ 725,537,564        37,955,789      $ 1,477,701,403  

Issued in connection with the reinvestment of distributions

      527,991        19,703,411        867,558        33,970,801  

Redeemed

      (21,775,123 )       (825,872,767 )       (32,342,708 )       (1,248,292,004 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (2,493,638 )     $ (80,631,792 )       6,480,639      $ 263,380,200  
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase (decrease) from capital share transactions

      (1,709,802 )     $ (50,707,580 )       7,241,463      $ 294,964,158  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

|  78

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

12.  Capital Shares (continued).

 

     

Six Months Ended
June 30, 2022

     

Year Ended
December 31, 2021

  

Gateway Equity Call Premium Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      18,077      $ 283,802        119,601      $ 1,838,974  

Issued in connection with the reinvestment of distributions

      383        5,840        486        7,707  

Redeemed

      (44,939 )       (708,206 )       (67,014 )       (1,010,211 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (26,479 )     $ (418,564 )       53,073      $ 836,470  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class C

 

Issued from the sale of shares

      20,094      $ 294,095        5,571      $ 83,540  

Issued in connection with the reinvestment of distributions

      —        —        5        75  

Redeemed

      (17,563 )       (249,090 )       (9,350 )       (135,497 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      2,531      $ 45,005        (3,774 )     $ (51,882 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      956      $ 14,810        2,094      $ 31,390  

Issued in connection with the reinvestment of distributions

      71        1,082        263        4,105  

Redeemed

      (11,292 )       (176,461 )       (28,036 )       (439,160 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (10,265 )     $ (160,569 )       (25,679 )     $ (403,665 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      3,639,792      $ 56,421,557        2,374,121      $ 36,711,691  

Issued in connection with the reinvestment of distributions

      10,671        161,671        8,278        130,618  

Redeemed

      (998,660 )       (15,200,894 )       (318,518 )       (4,919,489 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      2,651,803      $ 41,382,334        2,063,881      $ 31,922,820  
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase from capital share transactions

      2,617,590      $ 40,848,206        2,087,501      $ 32,303,743  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     

Six Months Ended
June 30, 2022

     

Year Ended
December 31, 2021

  

Global Green Bond Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      151,574      $ 1,414,421        330,121      $ 3,478,742  

Issued in connection with the reinvestment of distributions

      10,106        94,690        18,695        191,969  

Redeemed

      (100,648 )       (940,846 )       (205,158 )       (2,165,159 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      61,032      $ 568,265        143,658      $ 1,505,552  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      165,997      $ 1,558,078        402,160      $ 4,252,330  

Issued in connection with the reinvestment of distributions

      10,019        94,183        27,746        286,884  

Redeemed

      (447,972 )       (4,223,825 )       (723,427 )       (7,634,063 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (271,956 )     $ (2,571,564 )       (293,521 )     $ (3,094,849 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      532,212      $ 4,946,606        1,803,141      $ 19,007,559  

Issued in connection with the reinvestment of distributions

      45,915        431,138        84,947        873,670  

Redeemed

      (476,901 )       (4,461,142 )       (763,186 )       (8,021,816 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      101,226      $ 916,602        1,124,902      $ 11,859,413  
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase (decrease) from capital share transactions

      (109,698 )     $ (1,086,697 )       975,039      $ 10,270,116  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

79  |

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

12.  Capital Shares (continued).

 

     

Six Months Ended
June 30, 2022

     

Year Ended
December 31, 2021

  

Global Sustainable Equity Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      334,199      $ 5,708,253        730,171      $ 15,268,213  

Issued in connection with the reinvestment of distributions

      49,547        866,086        137,134        2,803,008  

Redeemed

      (314,340 )       (5,237,491 )       (484,741 )       (10,404,320 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      69,406      $ 1,336,848        382,564      $ 7,666,901  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class C

 

Issued from the sale of shares

      98,711      $ 1,658,821        335,039      $ 6,688,657  

Issued in connection with the reinvestment of distributions

      13,506        224,871        35,331        691,330  

Redeemed

      (86,459 )       (1,352,714 )       (82,377 )       (1,707,925 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      25,758      $ 530,978        287,993      $ 5,672,062  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      4,551,369      $ 79,484,899        7,851,561      $ 166,251,848  

Issued in connection with the reinvestment of distributions

      485,218        8,568,957        1,098,456        22,677,782  

Redeemed

      (2,324,629 )       (39,145,123 )       (2,037,482 )       (42,874,998 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      2,711,958      $ 48,908,733        6,912,535      $ 146,054,632  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      10,314,063      $ 182,605,992        23,278,352      $ 494,418,241  

Issued in connection with the reinvestment of distributions

      1,252,037        22,110,968        3,260,207        67,203,764  

Redeemed

      (7,780,902 )       (130,727,769 )       (24,519,480 )       (529,966,929 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      3,785,198      $ 73,989,191        2,019,079      $ 31,655,076  
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase from capital share transactions

      6,592,320      $ 124,765,750        9,602,171      $ 191,048,671  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     

Six Months Ended
June 30, 2022

     

Year Ended
December 31, 2021

  

International Sustainable Equity Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      32,890      $ 360,738        20,848      $ 301,831  

Issued in connection with the reinvestment of distributions

      —        —        621        8,864  

Redeemed

      (2,201 )       (25,095 )       (427 )       (6,066 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      30,689      $ 335,643        21,042      $ 304,629  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      144,358      $ 1,773,409        1,061,665      $ 15,350,795  

Issued in connection with the reinvestment of distributions

      —        —        32,137        457,863  

Redeemed

      (395,378 )       (4,473,913 )       (356,899 )       (5,294,442 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      (251,020 )     $ (2,700,504 )       736,903      $ 10,514,216  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      27,599      $ 337,710        129,002      $ 1,885,986  

Issued in connection with the reinvestment of distributions

      —        —        2,927        41,940  

Redeemed

      (8,668 )       (111,540 )       (13,329 )       (201,164 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      18,931      $ 226,170        118,600      $ 1,726,762  
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase (decrease) from capital share transactions

      (201,400 )     $ (2,138,691 )       876,545      $ 12,545,607  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

|  80

Notes to Financial Statements (continued)

 

June 30, 2022 (Unaudited)

 

12.  Capital Shares (continued).

 

     

Six Months Ended
June 30, 2022

     

Year Ended
December 31, 2021

  

U.S. Sustainable Equity Fund

   

Shares

     

Amount

     

Shares

     

Amount

  
Class A

 

Issued from the sale of shares

      8,579      $ 88,346        835      $ 10,270  

Issued in connection with the reinvestment of distributions

      15        161        50        623  

Redeemed

      (717 )       (7,762 )       —        —  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      7,877      $ 80,745        885      $ 10,893  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class C

 

Issued from the sale of shares

      —      $ —        7,608      $ 99,355  

Issued in connection with the reinvestment of distributions

      324        3,411        409        5,097  
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      324      $ 3,411        8,017      $ 104,452  
  

 

 

     

 

 

     

 

 

     

 

 

  
Class N

 

Issued from the sale of shares

      —      $ —        —      $ —  

Issued in connection with the reinvestment of distributions

      —        —        —        —  

Redeemed

      —        —        (111,465 )       (1,400,000 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      —      $ —        (111,465 )     $ (1,400,000 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
Class Y

 

Issued from the sale of shares

      479      $ 5,308        16,848      $ 195,494  

Issued in connection with the reinvestment of distributions

      150        1,599        190        2,393  

Redeemed

      (146 )       (1,554 )       (13,605 )       (157,637 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net change

      483      $ 5,353        3,433      $ 40,250  
  

 

 

     

 

 

     

 

 

     

 

 

  

Increase (decrease) from capital share transactions

      8,684      $ 89,509        (99,130 )     $ (1,244,405 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

81  |

(b) Not applicable.

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

Included as part of the Report to Shareholders filed as Item 1 herewith.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Securities Holders.

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

There were no changes in the Registrant’s internal control over financial reporting that occurred during the 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 for Closed-End Management Investment Companies.

Not applicable.

Item 13. Exhibits.

 

(a) (1)   Not applicable.
(a) (2)   Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)), filed herewith as Exhibits (a)(2)(1) and (a)(2)(2), respectively.
(b)   Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002, 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.

 

Natixis Funds Trust I
By:  

/s/ David L. Giunta

Name:   David L. Giunta
Title:   President and Chief Executive Officer
Date:   August 22, 2022

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 22, 2022

 

By:  

/s/ Matthew J. Block

Name:   Matthew J. Block
Title:   Treasurer and Principal Financial and
  Accounting Officer
Date:   August 22, 2022