Frequency-domain Simulations of a Negative-index Material with Embedded Gain

We solve the equations governing light propagation in a negative-index material with embedded nonlinearly saturable gain material using a frequency-domain model. We show that available gain materials can lead to complete loss compensation only if they are located in the regions where the field enhancement is maximal. We study the increased enhancement of the fields in the gain composite as well as in the metal inclusions and show analytically that the effective gain is determined by the average near-field enhancement.