• Scorecard ℠ System Methodology

    Our Scorecard ℠ System methodology incorporates both quantitative and qualitative factors in evaluating fund managers and their investment strategies. It is built around pass/fail criteria (on a scale of 0 to 10) and has the ability to measure Active, Passive and Asset Allocation investing strategies. We evaluate Active and Asset Allocation strategies over a five year time period and Passive strategies over a three year time period.

    Eighty percent of a fund’s score is made up of eight unique quantitative factors, inccluding modern portfolio theory statistics, quadratic optimization analysis, and peer group rankings. The other 20% of a fund’s score is qualitative, taking into account manager tenure, expense ratio relative to the average fund expense ratio in that asset class category, and the fund’s strength of statistics (statistical significance). Other criteria that may be considered in the qualitative score includes the viability of the firm managing the assets, management or personnel issues at the firm and/or whether there has been a change in direction of the fund’s stated investment strategy.

    Combined, these factors are how we measure the relative performance, characteristics, behavior and overall appropriateness of a fund for inclusion into your plan as an investment option. General fund guidelines are shown in the “Scorecard ℠ Point System” table below. We designed our Scorecard Point System to be used in conjunction with our Investment Policy Statement, which identifies “watch-list” or removal candidates and minimum standards.

    If you would like us to review an existing fund or a fund you are considering adding to your 401(k) investment menu, please provide us with fund symbols and your contact information by clicking here.

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All investment advisory services are offered through Gateway, a federally registered investment adviser that maintains a principal office in the State of New Jersey. Investing involves risk and past performance may not be indicative of future results. Any reference to or use of the terms “registered investment adviser” or “registered,” does not imply that Gateway or any person associated with the Firm has achieved a certain level of skill or training. Gateway and its representatives are in compliance with the current registration and notice filing requirements imposed upon SEC registered investment advisers by those states in which the Firm maintains clients. Gateway may only transact business in those states in which it is notice filed, or qualifies for an exemption or exclusion from notice filing requirements. Gateway’s website is limited to the dissemination of general information regarding its investment advisory services to United States residents residing in states where providing such information is not prohibited by applicable law. No portion of any statement is to be construed as an offer or solicitation to buy or sell a security, or the provision of personalized investment, tax or legal advice. Any subsequent, direct communication by Gateway with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For additional information about Gateway, please consult the Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov, which contains the most recent versions of the Firm’s Form ADV disclosure documents.

These materials have been independently produced by Gateway Advisory LLC. Gateway Advisory is independent of, and has no affiliation with, Charles Schwab & Co., Inc. or any of its affiliates (Schwab). Schwab is a registered broker-dealer and member SIPC. Schwab has not created, supplied, licensed, endorsed, or otherwise sanctioned these materials nor has Schwab independently verified any of the information in them. Gateway Advisory provides you with investment advice, while Schwab maintains custody of your assets in a brokerage account and will effect transactions for your account on our instruction.