Gateway Equity Strategy: Capturing Long-Term Returns, Limiting Volatility

1. Walter G. Sall, Chairman and Chief Executive Officer Gateway Investment Advisers, L.P. 3805 Edwards Road, Suite 600 Cincinnati, Ohio 45209 800.354.6339 Fax 513.719.1199

2. Gateway Strategy:Equity — Why Not? • Over The Long Term, Captures A Substantial Portion Of The Equity Total Return • Over The Long Term, Limits The Volatility To A Level Comparable To Bonds

3. Development Of Hedged EquityStrategy At Gateway • Firm Established In 1977 And Developed Covered Call Strategies • Strategy Evolves To Use Of Index Options – Both Calls And Puts – In Mid 1980s • Use Of Puts Extremely Successful In Hedging During Market Crash In October 1987 • Manages Approximately $2 Billion As Of 9/30/03

4. Alternative View of Allocation:Risk Allocation January 1, 1988 – September 30, 2003 Based on Quarterly Data Low RiskInvestment-Grade Corporate Bonds, Treasury Bonds GatewayIndex/RA Lehman U.S. Long Gvt/Credit Index Low Risk Plus GrowthGateway Index/RA, Balanced Funds, Convertible Bond Funds, High-Yield Bond Funds, Arbitrage Hedge Funds, Fund of Hedge Funds Lehman U.S. Intermediate Gvt/Credit Bond Index S&P 500 Index Lehman U.S. Corporate High Yield Index GrowthEquity Funds Citigroup One-Month Treasury Bill Index High ReturnVenture Capital, Leveraged Hedge Funds, Speculative Investments Past performance is not indicative of future returns.See Disclosure on Page 13.

5. Performance Comparison January 1, 1988 – September 30, 2003 Based on Quarterly Data Past performance is not indicative of future returns.See Disclosure on Page 13.

6. Investment Process • Purchase of index basket of stocks • Provides broad diversification • Balance and stability Sell cash-settled index call options • Primary source of return • Continuously written • Provides seller with annualized cash flow averaging an estimated 18% to 20% over last 16 years • Primary return supplied by accepting upfront cash payment in exchange for uncertain future appreciation Purchase index put options • Acts as “safety net” to mitigate the impact of a significant market decline in a short period of time • Includes deductible feature of 6% to 10% • Average estimated cost of 6% to 8% over last 16 years

7. Analogy:Don’t Speculate —Invest Like A Landlord Cash Flow From Rental IncomeMinusCost of Operation& Insurance Cash Flow From Call Option PremiumsMinusCost of Puts& Fees Indexed portfolio of stocks is capital asset that creates cash flow fromcall option premiums. Apartment building is the capital asset that creates cash flow from rental income. Net Cash Flow Net Cash Flow Asset Value Asset Value

8. The Total Return Equation The return available is a function of call premiums, put premiums and costs, plus the impact of down markets.

9. Gateway – Consistency andCapital Preservation January 1, 1988 – December 31, 2002 High Volatility Low Volatility Equity Bull Market Equity Bear Market Past performance is not indicative of future returns.See Disclosure on Page 13.

10. Results Point To Success:From January 1, 1988 To September 30, 2003,Gateway Index/RA Has . . . . • Produced An Average Annual Return Of 10.36% • From January 1988 – December 1999: 13.07% • From January 2000 – December 2002: -0.11% • Outperformed Comparably Volatile Bonds • Limited Downside Loss In The Worst Bear Market Since 1973-1974 • Profited From Sharp Increases In Equity Market Volatility Past performance is not indicative of future returns.See Disclosure on Page 13.

11. How Does Hedged Equity ImproveAsset Allocation? • Limits Open-Ended Risk Of Equities • Improved Reward To Risk Relative To Equities (Sharpe Ratio) • Uncorrelated To Bond Returns But Similar Volatility • Overall Impact – Improved Return Without Taking Additional Risk

12. Distinguishing Features of Index Options Features • Trading Efficiencies • Index Options Are Cash-Settled — Cash Is Delivered To The Option Buyer, Not Stocks Benefits • Lower Transactional Costs • Tax Efficient

13. If Hedging Works So Well,Why Doesn’t Every Investor Use It? • Fiduciary Perception Of Unconventional Strategy • Options Are Speculative Investments • Frictional Costs Are High • Not Tax Efficient • Gives Up Too Much Upside

14. Disclosure This material is restricted for use only on a one-on-one basis with prospective clients. Gateway Index/RA performance shown in this illustration is an asset-weighted composite of all discretionary accounts under Gateway’s management which share the same investment objectives and hedging strategies. These results have been prepared and presented in compliance with the AIMR-PPS standards only for the period fromJanuary 1, 1993 through September 30, 2003. Prior to January 1, 1993, not all fully discretionary portfolios were represented in composites. Results shown for 1988 through 1992 are those of one representative account. The composite was created in January 1993. Gateway Index/RA performance results reflect the reinvestment of dividends and other earnings, but do not reflect the deduction of investment advisory fees. A client’s return will be reduced by the advisory fees and other expenses the account may incur. A more detailed description of Gateway’s fees is included in Form ADV, Part II. To illustrate the effect of management fees on performance, consider a $5 million account with a total return of 12% per year. Management fees are 0.85% per year on the first $5 million and 0.65% per year on assets between $5 million and $10 million, deducted monthly. At the conclusion of a five-year period, the value of the account would be $8,464,065, and management fees paid would total $264,887. Exclusive of management fees, the ending value of the account would have been $8,811,708. If you have not already received the Annual Disclosure Presentation for the Gateway Index/RA composite, one is available upon request by calling 800.354.6339 extension 432 or 443. Data Source: Gateway Investment Advisers, L.P., Thomson Financial and Lehman Brothers Inc.