About GCPAX
Gateway Equity Call Premium Fund Class A is a mutual fund designed to deliver income and manage risk through a combination of equity investment and options strategies. Its primary function is to offer exposure to a diversified portfolio of large-cap stocks—generally sampled to reflect the composition of the S&P 500—and to generate additional income by actively writing index call options on this underlying equity portfolio. This call-writing approach involves selling slightly out-of-the-money call options, enabling the fund to collect premiums, which can offset some market volatility and contribute to total return.
The fund’s notable features include its focus on large blend equities, holdings that prominently feature major technology, consumer cyclical, and financial sector names, and a strategy classified under the derivative income category. By engaging in covered call strategies, the fund aims to achieve lower volatility compared to traditional equity funds while maintaining significant exposure to stock market performance. This approach is especially relevant for investors seeking diversified return streams and enhanced cash flow, particularly in environments with normalized interest rates, as higher rates can increase option premium income. In the broader market context, the fund serves as an instrument for income generation and diversification, appealing to those who value a balance between equity growth potential and reduced overall portfolio risk through options-based techniques.
Fund Family Natixis Funds
Category Derivative Income
Performance Rating Above Average
Risk Rating Below Average
Stock Exchange NASDAQ
Ticker Symbol GCPAX
Share Class Class A
Index CBOE S&P 500 Buywrite (BXM)
GCPAX had a total return of 3.84% in the past year, including dividends. Since the fund's
inception, the average annual return has been 8.35%.
