<PAGE> 1
THE GATEWAY TRUST
SUPPLEMENT DATED OCTOBER 18, 1996
TO
PROSPECTUS DATED MAY 1, 1996
================================================================================
The following material supplements the Prospectus dated May 1, 1996 for the
Gateway Index Plus Fund, the Gateway Mid Cap Index Fund, and the Gateway Small
Cap Index Fund (the "Funds"), and particularly the information contained under
"HOW TO PURCHASE ADDITIONAL SHARES" on page 8 of the Prospectus, "HOW TO REDEEM
SHARES" on page 9 of the Prospectus, and "HOW FUND SHARES ARE PRICED" on page
20 of the Prospectus. Each of the funds is a series of The Gateway Trust.
Effective September 30, 1996, the Board of Trustees approved a change to the
time the portfolios of the Funds are priced from 4:15 P.M. Eastern Time (the
close of the options exchanges) to 4:00 P.M. Eastern Time (the close of the New
York Stock Exchange). As a result, the prospectus has been modified as follows:
o "HOW TO PURCHASE ADDITIONAL SHARES", page 8, paragraph 1, is amended to read
as follows:
You may add to your Gateway account at any time by choosing one of the
following purchase options. The minimum amount for an additional
investment in any fund is $100. Your purchase will be based on the
closing share price of the fund as next determined after your request
has been received in good order. (See "HOW FUND SHARES ARE PRICED"
below.)
o "HOW TO REDEEM SHARES", page 9, paragraph 1, is amended to read as follows:
You may redeem shares from your Gateway account at any time by choosing
one of the following options. Your redemption will be based on the
closing share price of the fund as next determined after your request
has been received in good order. (See "HOW FUND SHARES ARE PRICED"
below.)
o "HOW FUND SHARES ARE PRICED", page 20, is amended to read as follows:
The net asset value (closing share price) of a fund ordinarily is
determined as of the close of the New York Stock Exchange (NYSE),
normally 4:00 P.M. Eastern Time, on each day during which the NYSE is
open for trading. Under unusual circumstances, the net asset value may
be determined at other times as authorized by the Board of Trustees. Net
asset value is determined by deducting the liabilities of a fund from
the market or fair value of its assets.
The funds normally value stocks and options at the average of the
closing bid and ask quotations. Under normal circumstances, closing
option quotations are considered to be reflective of the option contract
values as of the stock market close and will be used to value the option
contracts. Securities for which market quotations are not readily
available, securities in which trading has been suspended during the
day, and all other assets are valued at fair value. Furthermore , if the
Adviser determines that closing options quotations do not reflect option
contract values as of the close of the NYSE, options are valued at fair
value. Fair value is determined in good faith under procedures adopted
by the Board of Trustees.
