Adjusting to a New World:
This is Not Your Grandfather’s Fixed Income Market
Interest Rates Remain Below the Long Run Average and Aren’t, In Our View, Positioned to Experience a Multi-Decade Drop to Fuel an Easy Bond Bull Market
Are You Happy with Your Fixed Income Returns Over the Past Five Years?
Do you think the next five years in fixed income are going to be drastically different? We believe it’s likely to be more of the same and want to give you a reason to get excited about bonds again.
Here’s How the Catalyst/CIFC Senior Secured Income Fund (CFRIX) Performed:
During the Past 3 Years, CFRIX has Provided Less Volatile Returns
With a lower standard deviation than the Bloomberg US Aggregate TR (the “Agg”) and a 60/40 portfolio split of the S&P 500 and the Agg, investors have experienced less volatility with CFRIX.
Learn About CFRIX and CIFC Asset Management
- CFRIX is sub-advised by CIFC Asset Management, which manages more than $45 billion for over 500+ institutional investors globally.
- The Fund invests primarily in senior secured debt instruments, which pay a variable rate that adjusts with changes in short-term interest rates.
- CFRIX uses a disciplined, research-intensive approach to company and security selection.
There is no assurance that the Fund will achieve its investment objective.
You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. The Fund’s maximum sales charge for Class “A” shares is 4.75%. Gross expense ratios for Class A, Class C, and Class I are 1.50%, 2.25%, and 1.25%, respectively. 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 please call the Fund, toll free at 1-866-447-4228.
Past performance is not a guarantee of future results. There is no assurance that the Fund will achieve its investment objectives. You cannot invest directly in an index and unmanaged index returns do not reflect fees, expenses, or sales charges.
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 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.
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. Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. The Fund’s portfolio may be focused on a limited number of industries, asset classes, countries, or issuers. The Fund may invest in high yield or junk bonds which present a greater risk than bonds of higher quality. Other risks include credit risks and interest rate for Floating Rate Loan Funds. Changes in short-term market interest rates will directly affect the yield on the shares of a fund whose investments are normally invested in floating rate debt. Floating Rate Loan Funds tend to be illiquid, the Fund might be unable to sell the loan in a timely manner as the secondary market is private, unregulated inter-dealer or inter-bank re-sale market. These factors may affect the value of your investment.
Glossary:
Bond Bull Market – a bond market in which prices are rising or are expected to rise over an extended period of time.
Effective Federal Funds Rate – the volume-weighted median of the interest rates banks charge each other for overnight lending in the federal funds market, and it‘s a key indicator of the cost of short-term borrowing in the US.
US 10-Year Government Bond Interest Rate – represents the interest rate the U.S. government pays to borrow money for a 10-year period. It‘s a widely watched benchmark that reflects investor sentiment about the economy and the government‘s financial health.
Volatility – a statistical measure of the dispersion of returns for a given security or market index.
Floating Rate Securities – fixed-income instruments where the interest rate (coupon) adjusts periodically, typically based on a benchmark rate or the Fed Funds rate. This contrasts with fixed-rate securities, which have a set interest rate for the entire duration of the bond.
Standard Deviation – a statistical measurement of the dispersion of a dataset relative to its mean.
60/40 Portfolio – an investment strategy that allocates 60% of assets to stocks, (S&P 500 TR Index) and 40% to bonds (the Agg).
Bloomberg US Agg TR 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.
Morningstar LSTA Lvg. Loan 100 TR Index – designed to measure the total return performance of the 100 largest US leveraged loan facilities.
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