Catalyst Funds Launches Catalyst Enhanced Income Strategy Fund
HUNTINGTON, N.Y.–(BUSINESS WIRE)–Catalyst Funds, an alternative-focused mutual fund company, today announced the launch of the Catalyst Enhanced Income Strategy Fund (EIXIX). The Fund employs an income-focused strategy that invests in a variety of non-traditional income asset classes.
EIXIX invests primarily in agency and non-agency residential mortgage backed securities (RMBS) as well as other asset-backed income securities, including securities backed by aircraft, automobiles, credit card receivables, and student loans. Under normal circumstances, the Fund will invest over 25% of its assets in agency and non-agency RMBS and will diversify geographically and among the servicing institutions that service or originate these securities. The Fund’s objective is current income.
“With interest rates on the rise, there couldn’t be a more opportune time for the Catalyst Enhanced Income Strategy Fund to debut,” said Jerry Szilagyi, CEO of Catalyst Funds. “This Fund offers investors an income-oriented strategy fueled by alternative sources such as mortgage backed securities that can provide insulation from the impact of rising rates. Catalyst welcomes this strategy to our family of funds and is proud to offer investors another alternative income investment strategy.”
Determination for investment allocation is based on market supply and which asset classes the management team views as offering the best risk-adjusted values in the marketplace at a given time. Risk/return opportunity is analyzed based on a variety of factors including collateral quality, duration, structure, excess interest, credit support, potential for greater upside and less downside capture, liquidity and market conditions and favors undervalued investments that can produce consistent returns in most interest rate environments.
The investment strategy is designed to include a distribution policy of twelve monthly distributions to shareholders. The level of monthly distributions (including any return of capital) is not fixed and is not designed to generate a fixed percentage of the Fund’s current net asset value per share.
EIXIX will be sub-advised by Wynkoop, LLC and Leland Abrams and Brandon Jundt will serve as the portfolio managers. The Fund will trade under the tickers EIXAX, EIXCX and EIXIX. For more information on this fund, and Catalyst’s range of mutual fund offerings, please visit: www.catalystmf.com.
About Catalyst Funds
Catalyst Funds currently offers 23 distinctive funds that provide various strategies with the goal of producing income- and equity-oriented returns, while seeking to control risk and volatility. Catalyst offers these exclusive strategies through a team of in-house portfolio managers and boutique institutional investment management partners. The firm strives to provide innovative strategies to support financial advisors and their clients in meeting the investment challenges of an ever-changing global market environment. For more information on Catalyst Funds and its various offerings, please visit: www.catalystmf.com.
Important Risk Considerations:
Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. The Fund is a new mutual fund and has a limited history of operations for investors to evaluate. Investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategies. The Fund is non-diversified and may invest a greater percentage of its assets in a particular issue and may own fewer securities than other mutual funds; the Fund is subject to concentration risk. Interest rate risk is the risk that bond prices overall, including the prices of securities held by the Fund, will decline over short or even long periods of time due to rising interest rates. Bonds with longer maturities tend to be more sensitive to interest rates than bonds with shorter maturities. Lower-quality bonds, known as “high yield” or “junk” bonds, present greater risk than bonds of higher quality, including an increased risk of default. Credit risk is the risk that the issuer of a security will not be able to make principal and interest payments when due. These factors may affect the value of your investment.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Catalyst Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-866-447-4228 or at www.CatalystMF.com. The prospectus should be read carefully before investing. The Catalyst Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Catalyst Capital Advisors, LLC is not affiliated with Northern Lights Distributors, LLC.
8510-NLD-11/30/2018