Catalyst/Exceed Defined Risk Fund

Tickers: CLPFX | CLPAX | CLPCX

Fund Objective

The Fund’s objective is long-term capital appreciation.

What’s the Hedge?

The Fund seeks to limit downside with a 10% buffer when the S&P 500 Index declines in value.

Seeking a Better Approach to Defined Outcome Investing

1

Always Hedged

2

Always Participating

3

Always Optimizing

Investment Strategy

The Fund seeks to achieve its investment objective by investing in a series of put and call options on exchange traded funds (“ETFs”) that track the S&P 500 Index and in fixed income securities.

Each series consists of (1) a sold put option which serves to buffer losses to approximately 10%, and (2) an upside call spread which allows for upside participation to a cap.

The investment strategy is implemented through a rolling laddered portfolio.

The portfolio is then regularly optimized based on market activity to maintain a consistent buffer hedge and upside participation.

Defined Outcome Investment Objective

The chart below illustrates the Fund’s approach to buffering losses when the S&P 500 Index declines.

Distinct “Stepping Up” Hedge Approach

1. Initiate a 12 month target buffer and cap
2. When market increases, seek to step up the target buffer and cap
3. When market declines, maintain exposure

The market illustrations are shown for informational purposes only and is not reflective of any investment results, nor does it represent Fund performance. There is no guarantee any investment strategy will achieve its objectives, generate profits or avoid losses. Option strategies involve significant risk and may not be suitable for all investors.

Fund Management

Investment Advisors

Investment Advisor: Catalyst Capital Advisors, LLC

Sub-Advisor: Exceed Advisory, LLC

Joseph Halpern | Portfolio Manager

  • Founding Partner of Exceed Investments, LLC
  • BS in Finance & Accounting, New York University Stern School of Business

Fund Overview

Ticker CLPFX CLPAX CLPCX CLPAX
Share Class Class I Class A Class C Class A w/ Sales Load
CUSIP 62827M532 62827L187 62827L179 62827L187
Inception Date 2014-06-06T00:00:00 2013-12-31T00:00:00 2013-12-31T00:00:00 2013-12-31T00:00:00
As of Date 2019-08-23T00:00:00 2019-08-23T00:00:00 2019-08-23T00:00:00 2019-08-23T00:00:00
Daily NAV 10.65 10.57 10.08 10.57
NAV Change -0.17 -0.17 -0.16 -0.17
% NAV Change -1.57% -1.58% -1.56% -1.58%

Current Fund Performance

Data as of: 2019-08-23T00:00:00

Share Class 1 Month 3 Months 6 Months YTD 1 Year 3 Years Annualized 5 Years Annualized 10 Years Annualized Since Inception Annualized
Class I -3.18% 1.43% 3.10% 11.05% 2.14% 6.41% 3.24% N/A 3.67%
Class A -3.21% 1.34% 2.92% 10.91% 1.93% 6.25% 3.02% N/A 4.39%
Class C -3.17% 1.20% 2.65% 10.41% 1.18% 5.38% 2.20% N/A 3.55%
Class A w/Sales Load -8.80% -4.52% -3.03% 4.55% -3.89% 4.17% 1.81% N/A 3.30%

Prior to 12/28/2016, Catalyst/Exceed Defined Fund was named Catalyst/Lyons Hedged Premium Return Fund, which implemented a different investment strategy.

Quarterly Fund Performance

Data as of quarter end: 2019-06-30T00:00:00

Share Class 1 Month 3 Months 6 Months YTD 1 Year 3 Years Annualized 5 Years Annualized 10 Years Annualized Since Inception Annualized
Class I 4.24% 3.15% 12.72% 12.72% 6.73% 8.85% 4.22% N/A 4.09%
Class A 4.27% 3.17% 12.70% 12.70% 6.54% 8.65% 4.00% N/A 4.81%
Class C 4.27% 2.91% 12.27% 12.27% 5.64% 7.74% 3.17% N/A 3.96%
Class A w/Sales Load -1.74% -2.81% 6.23% 6.23% 0.39% 6.53% 2.78% N/A 3.69%

Prior to 12/28/2016, Catalyst/Exceed Defined Fund was named Catalyst/Lyons Hedged Premium Return Fund, which implemented a different investment strategy.

The Fund’s maximum sales charge for Class “A” shares is 5.75%. Investments in mutual funds involve risks. 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.

Fund Expenses

Share Class Class I Class A Class C Class A w/ Sales Load
Gross Expense Ratio 2.46% 2.72% 3.50% 2.72%
Net Expense Ratio 1.32% 1.57% 2.32% 1.57%
Annual Report Net Expense Ratio* 1.26% 1.51% 2.26% 1.51%

*The annual report presents the audited actual expenses of the fund for the fiscal year. It excludes the impact of certain items that are listed as prospectus expenses, such as acquired fund fees and expenses.

The Advisor has contractually agreed to waive fees and/or reimburse expenses of the Fund to the extent necessary to limit total annual fund operating expenses (excluding brokerage costs; underlying fund expenses; 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 1.53%, 2.28% and 1.28% for Class A shares, Class C shares and Class I shares, respectively, through October 31, 2020. In the case of investments at or above the $1 million breakpoint (where you do not pay an initial sales charge), a 1.00% contingent deferred sales charge (“CDSC”) may be assessed on shares redeemed within two years of purchase.

There is no assurance that the Fund will achieve its investment objective.

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 performance of the Fund may be subject to substantial short term changes. There are risks associated with the sale and purchase of call and put options. As the buyer of a put option, the Fund assumes the risk of a rise in the market price of the underlying security above the exercise price of the option which will cause a loss of the premium paid for the option. As a seller (writer) of a put option, the Fund will lose money if the value of the security falls below the strike price. Fixed income securities will fluctuate with changes in interest rates. There are risks associated with the sale and purchase of call and put options. These factors may affect the value of your investment.

4796-NLD-6/27/2019

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