Mike Perini, Founder and CIO of Perini Capital and Portfolio Manager of the Catalyst/Perini Strategic Income Fund (CSIOX), sat down for a Q&A to explain the basics, and potential benefits, of an interval fund structure.

1. For investors unfamiliar with closed-end funds, what are interval funds and how do they differ from the standard mutual fund? What makes them potentially more attractive?

Interval funds, a type of closed-end fund, typically appeal to investors looking for access to less liquid strategies and/or alternative assets that are generally available only via private fund structures. Interval funds often provide a more stable capital base since the funds don’t have to sell securities in response to unforeseen redemptions.

Compared to private funds, interval funds have, in our view, some compelling features, including: 1099’s, transparency, unaccredited investor access, daily valuation, and oversight by an independent fund board.

Interval funds are available for investors to purchase daily and are typically structured to require quarterly share repurchases of no less than 5% of the fund’s total net assets. Please keep in mind, this is a fund-level repurchase amount, so individual investors who wish to redeem their investment could receive their entire investment back during a given quarter if the aggregate repurchase request amounted to less than 5% of the fund’s total net assets.

• Standard open-ended mutual funds are not designed to invest in less liquid strategies and are subject to a regulatory requirement that limits illiquid investments to 15% of NAV. Interval funds have no such limitations and, as such, can participate in investment opportunities that mutual funds are either unable to access or can only access on a limited basis.
• In addition to having more limited investment mandates compared to interval funds, mutual funds differ in that they may be forced to sell holdings to meet daily liquidity needs, whereas interval funds generally offer liquidity on a preset quarterly schedule through share repurchase programs. In our opinion, this difference is a “game changer” as it allows interval fund managers to mitigate the possibility of becoming a forced seller during significant market downturns.
• Internal portfolio cash flows can be used to meet a known quarterly redemption schedule, as opposed to mutual funds that are often forced to sell securities to meet unforeseen redemptions. As prices go down and spreads widen, interval funds have the potential to invest at lower prices and wider spreads, thereby increasing the annuity value of the fund. Due to their distinct structure, interval funds may at times be counter cyclical, rather than pro-cyclical.

2. How does the interval fund structure potentially enhance CSIOX’s ability to generate returns in the RMBS, asset backed securities, and private sectors?

Within RMBS, an interval fund structure allows us to take advantage of the full breadth of opportunities, both up and down the capital structure and in various sectors and sub-sectors that are typically less liquid (but nevertheless represent attractive forward return profiles). We estimate that the liquidity premium is approximately 3%-5% for less on-the-run sectors of the RMBS market.

Private senior secured commercial real estate loans are non-traded loans and therefore are not available within a mutual fund structure. These loans are senior in the capital structure with a similar risk profile as senior tranches of RMBS/CMBS but tend to offer a 4+% liquidity premium due to it being a direct loan versus a tradable security. The duration of the loans we focus on is typically short-term, often 1-2 years. So, from a cash flow and buy and hold perspective, these direct loans are, in our view, very attractive in terms of both absolute return and relative value as compared to senior tranches of RMBS/CMBS.

3. If interest rates remain higher for longer as “supply shocks” continue to create challenges in the market, how will this impact interval funds like CSIOX?

The various strategies traded within interval funds vary considerably, so the impact of “higher for longer” will necessarily vary among different funds. However, from our standpoint, “higher for longer” is a positive for CSIOX, as the fund’s strategy has historically generated significant cash flow, and the reinvestment of incoming cash flow at higher rates for longer is favorable. For high cash flow portfolios such as CSIOX, the reinvestment of income has historically been a significant source of total return and has reduced the price volatility of the Fund.

Generally, ”higher for longer” means incoming cash flows are able to be invested at higher interest rates, which tends to build the annuity value of the Fund, which we believe is a positive attribute.

4. How do you see an interval fund like CSIOX fitting into an investor’s strategy? Does the Fund’s structure and the asset class you’re invested in offer diversification benefits?

Depending on the goals of an individual investor, CSIOX could potentially be used as a replacement for high yield strategies, as a source of income generation, or as a stand-alone asset class due to its diversification benefits.

CSIOX is designed to provide investors with low correlations to traditional asset classes; therefore, the Fund can serve as a complement to a portfolio of traditional stocks and bonds and is likely to exhibit a low correlation to both liquid alternatives and private equity.

Year-to-date (as of May 31, 2025), the Fund’s correlation to the Bloomberg U.S. Agg. Bond Index and the S&P 500 TR Index is 0.20 and -0.04, respectively. Further, CSIOX’s YTD performance and observed volatility so far in 2025, in our view, illustrates the resilience of the Fund and how its asset mix and high cash flow characteristics offer the potential to provide differentiated returns and low correlations vs. traditional stock and bond investments.

Through 5/31/2025

Past performance is not a guarantee of future results. See important disclosures at the end of this presentation.

5. What differentiates CSIOX from other interval funds? Why should investors consider allocating to the Fund?

We believe CSIOX offers the following distinct characteristics:

• As of June 2025, CSIOX is the only interval fund focused on legacy non-Agency RMBS and private senior secured commercial real estate loans.
  • We expect this combination to potentially deliver high absolute returns, high current yield, and low correlations to traditional stock and bond markets.
  • As of December 31, 2024, there were 122 interval funds with a wide range of strategies; however, we believe CSIOX has a unique area of focus vs other interval funds that are currently available.
• Many investors assume the interval fund structure creates opportunities only for the inclusion of private credit, but it also allows investment depth along the non-agency RMBS spectrum of opportunities that wouldn’t be possible in an open-ended mutual fund; that’s why we paired the two and packaged them in an interval fund structure.
• Our goal is to deliver non-correlated investment returns and high cash flow in a variety of market environments, and the unique characteristics of the interval fund structure are ideally suited to helping us achieve this goal.

Performance (%): Ending March 31, 2025
Annualized if greater than a year

*The advisor has contractually agreed to waive management fees and/or reimburse expenses of the Fund to the extent necessary to limit operating expenses (excluding brokerage costs; borrowing costs such as (a) interest and (b) dividends on securities sold short; taxes; and extraordinary expenses, such as regulatory inquiry and litigation expenses) at 1.99% through January 31, 2026. Fees are calculated on a net asset basis, not a total asset basis.

There is no assurance that the Fund will achieve its investment objective. You cannot invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.

Investments in closed-end funds involve risks. CSIOX is a non-listed closed-end fund structured as an interval fund. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the Fund’s prospectus, please call the Fund toll free at 1-866-447-4228. You can also obtain a prospectus at www. CatalystMF.com/funds/catalyst-strategic-income-opportunities-fund/.

Risk Considerations:

Past performance is not a guarantee of future results. Diversification cannot assure a profit or protect against loss in a down market.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Catalyst/Perini Strategic Income Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 866-447-4228 or at www.CatalystMF.com. The prospectus should be read carefully before investing. The Catalyst/Perini Strategic Income Fund is distributed by Foreside Fund Services, LLC, which is not affiliated with Catalyst Capital Advisors LLC, or any of its affiliates.

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 or group of securities in the Fund’s portfolio. Investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategies. When the Fund invests in asset-backed securities and mortgage backed securities, the Fund is subject to the risk that, if the underlying borrowers fail to pay interest or repay principal, the assets backing these securities may not be sufficient to support payments on the securities. 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.

Shares of the Fund are not listed on any securities exchange, which makes them inherently illiquid. There is no secondary market for the Fund’s shares, and it is not anticipated that a secondary market will develop. As a result of the foregoing, an investment in the Fund’s shares is not suitable for investors who cannot tolerate risk of loss or who require liquidity, other than liquidity provided through the Fund’s repurchase policy.

Although the Fund offers to repurchase at least 5% of outstanding shares on a quarterly basis in accordance with the Fund’s repurchase policy, the Fund is not required to repurchase shares at a shareholder’s option, nor are shares exchangeable for units, interests or shares of any security. Moreover, the Fund is not required to extend, and shareholders should not expect the Fund’s Board of Trustees to authorize, repurchase offers in excess of 5% of outstanding shares.

Effective 3/31/2025, the “Catalyst Strategic Income Opportunities Fund” changed its name to the “Catalyst/Perini Strategic Income Fund.”

Glossary:

Bloomberg US Aggregate Bond Index: A market capitalization-weighted index that is designed to measure the performance of the U.S. investment grade bond market with maturities of more than one year.
Effective Duration: Provides a measure of a fund’s interest rate sensitivity; the higher the value of a fund’s duration, the more sensitive the fund is to shifts in interest rates.
S&P 500 Total Return Index: Used to represent the U.S. large-cap stock market.
Correlation: A statistical measure of how two securities move in relation to each other.
Residential Mortgage-Backed Security (RMBS): Debt-based assets backed by the interest paid on residential loans.
Commercial Mortgage-Backed Securities (CMBS): Fixed-income investment products that are backed by mortgages on commercial properties rather than residential real estate.
Private Credit: Refers to privately negotiated loans between a borrower and a non-bank lender.
High Yield Bonds (Strategies): Bonds that pay higher interest rates because they have lower credit ratings than investment-grade bonds.

There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.