Catalyst/Teza Algorithmic Allocation Fund

Tickers: TEZAX | TEZCX | TEZIX

Fund Objective & Description

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

The Catalyst/Teza Algorithmic Allocation Fund is a multi-asset class long/short global allocation portfolio that aims to combine the best of institutional asset allocation, advanced quantitative tools, robust portfolio construction, hedge fund like alpha predictors, and scientific risk management.

Reasons to Invest

Performance and Risk Management
The Fund seeks to achieve a high total return relative to a volatility of 13-18%. Performance is designed to show weak positive correlation to equity and bond investments over a full market cycle, providing clients an exceptional tool to help achieve their long term goals.

Modernized Asset Allocation
The Fund seeks to add value by dynamically allocating risk across multiple asset classes, particularly equity indices and bonds. This allows the strategy to seek to take advantage of the strength of equities and interest rates and to magnify returns through regime management driven by proprietary alpha predictors.

Access to the Teza Investment Team
Teza is a highly experienced quantitative trading firm that employs dozens of researchers across multiple global offices. These individuals have a combined 150+ years of scientific and academic research, 600+ years of industry experience, 60+ years advanced degrees, authorship of hundreds of publications in advanced topics, and dozens of awards.

A Global Multi-Asset Fund

The fund can trade in over 30 different global futures markets. These include equity index futures and interest rate futures from most major economies. The fund then utilizes diversifying assets, for example precious metal futures, to further improve the strategy. The cash collateral may be invested in fixed income ETFs with a secondary objective of yield.

A Global Multi-Asset Fund

The fund can trade in over 30 different global futures markets. These include equity index futures and interest rate futures from most major economies. The fund then utilizes diversifying assets, for example precious metal futures, to further improve the strategy. The cash collateral may be invested in fixed income ETFs with a secondary objective of yield.

Dynamic Asset Allocation

The strategy captures hedge fund like alpha predictors through a systematic multi-signal investment process that uses dozens of independent algorithmic models such as machine learning technology, AI, price algorithms, fundamental based models and other techniques that results in a dynamic quantitative signal, or favorability signal, for each asset class.

The Fund rebalances positions daily, in response to changing market conditions, such as the favorability, volatility, and correlation of each asset class. Teza utilizes multiple scientific techniques to model and then allocate to a target risk for each asset class.

Scientific Risk Management

The reward for risk is not constant. Our scientific process allows the Fund to add volatility when risk becomes favorable and reduce risk in adverse or uncertain times with the dual objective of participating in many kinds of markets and defending the portfolio from severe drawdowns. This recalibration occurs daily.

Fund Management

Investment Advisor: Catalyst Capital Advisors LLC

Investment Sub-Advisor:
Teza Capital Management LLC

Dr. Mikhail Malyshev | Portfolio Manager

  • CEO of Teza Group LLC since its founding in 2009
  • Previously Managing Director and Global Head of High Frequency Trading at Citadel Investment Group, LLC
  • PhD in Astrophysics from Princeton University and MS. in Theoretical Physics and BS. summa cum laude in Physics and Mathematics from Moscow Institute of Physics and Technology

Matthew Hanna  | Portfolio Manager

  • Portfolio Manager at Teza Group since 2021
  • Prior experience as a portfolio manager at Summit Global Investments
  • CFA Charterholder, CAIA Charterholder, a Certified FRM, MS in Applied Economics from the University of North Dakota, MS in Finance from the University of Tampa

Dr. Reinhold Gebert  | Portfolio Manager

  • COO and CRO of Teza Group LLC since 2017
  • Prior experience at Gresham Investment Management, Barclays Wealth Americas, Lehman Brothers, and McKinsey & Company
  • PhD in Theoretical Physics from the University of Hamburg, M.Sc. In Mathematics with distinction from King’s College London

Fund Overview

Data as of: 2022-01-26T00:00:00

Ticker TEZIX TEZAX TEZCX TEZAX
Share Class Class I Class A Class C Class A w/ Sales Load
CUSIP 62827P295 62827P329 62827P311 62827P329
Inception Date 12/31/2019 12/31/2019 12/31/2019 12/31/2019
As of Date 2022-01-26T00:00:00 2022-01-26T00:00:00 2022-01-26T00:00:00 2022-01-26T00:00:00
Daily NAV 8.63 8.62 8.51 8.63
NAV Change -0.09 -0.08 -0.08 -0.09
% NAV Change -1.03% -0.92% -0.93% -1.03%

Current Fund Performance

Data as of: 2022-01-26T00:00:00

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 -7.90% -3.90% -4.22% -7.80% -5.79% N/A N/A N/A -3.92%
Class A -7.91% -3.90% -4.22% -7.81% -6.00% N/A N/A N/A -4.09%
Class C -7.90% -4.06% -4.60% -7.80% -6.69% N/A N/A N/A -4.84%
Class A w/Sales Load -13.19% -9.45% -9.74% -13.10% -11.41% N/A N/A N/A -6.79%

Quarterly Fund Performance

Data as of Quarter End: 2021-12-31T00:00:00

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 -0.32% 10.12% 5.17% 1.41% 1.41% N/A N/A N/A -0.08%
Class A -0.21% 10.13% 5.06% 1.30% 1.30% N/A N/A N/A -0.26%
Class C -0.32% 9.88% 4.65% 0.44% 0.44% N/A N/A N/A -1.07%
Class A w/Sales Load -5.94% 3.77% -0.95% -4.49% -4.49% N/A N/A N/A -3.17%

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 Distributions

Ticker Record Date Payable Date Distribution NAV Income Short-Term Gain Long-Term Gain
BUYIX 2017-12-14T00:00:00 2017-12-15T00:00:00 10.66 N/A 2.2244 N/A
BUYIX 2016-12-15T00:00:00 2016-12-16T00:00:00 10.87 0.0534 N/A N/A
BUYIX 2015-12-17T00:00:00 2015-12-18T00:00:00 9.26 0.1032 N/A N/A
BUYIX 2014-12-17T00:00:00 2014-12-18T00:00:00 9.42 N/A 0.3808 N/A
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 -4.10% -4.18% -9.95% 3.17% 3.17% 7.50% 6.68% N/A 5.88%
Class A -4.07% -4.22% -10.04% 2.94% 2.94% 7.22% 6.42% N/A 5.60%
Class C -4.19% -4.44% -10.45% 2.16% 2.16% 6.39% 5.62% N/A 4.81%
Class A w/Sales Load -9.56% -9.70% -15.19% -2.97% -2.97% 5.12% 5.16% N/A 4.82%
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 -4.10% -4.18% -9.95% 3.17% 3.17% 7.50% 6.68% N/A 5.88%
Class A -4.07% -4.22% -10.04% 2.94% 2.94% 7.22% 6.42% N/A 5.60%
Class C -4.19% -4.44% -10.45% 2.16% 2.16% 6.39% 5.62% N/A 4.81%
Class A w/Sales Load -9.56% -9.70% -15.19% -2.97% -2.97% 5.12% 5.16% N/A 4.82%

Fund Expenses

Data as of: 2022-01-26T00:00:00

Share Class Class I Class A Class C Class A w/ Sales Load
Prospectus Gross Expense Ratio (11/1/2021) 3.75% 4.00% 4.75% 4.00%
Prospectus Net Expense Ratio (11/1/2021) 2.05% 2.30% 3.05% 2.30%
Annual Report Net Expense Ratio (6/30/2021)* 1.99% 2.24% 2.99% 2.24%

*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; borrowing costs such as (a) interest and (b) dividends on securities sold short; taxes; underlying fund expenses; and extraordinary expenses, such as regulatory inquiry and litigation expenses) at 2.24%, 2.99% and 1.99% for Class A shares, Class C shares and Class I shares, respectively, through October 31, 2022.

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 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. The Fund’s performance may be volatile as the Funds’s performance may be subject to substantial changes, both long term and short term. The Advisor executes a portion of the Fund’s strategy by investing up to 25% of its total assets in a wholly-owned and controlled subsidiary. The subsidiary will not be registered under the 1940 Act and, unless otherwise noted in this Prospectus, will not be subject to all of the investor protections of the 1940 Act. Your cost in investing in the Fund will be higher because the investor indirectly bears the expenses of the Subsidiary by virtue of the Fund’s investment in the Subsidiary. Investments in commodities and futures may be especially volatile. The risk of loss in trading commodities and futures can be substantial. Investors should carefully consider whether such trading is suitable for their financial condition. 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.

7434-NLD-12012021

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