CATALYST FUNDS RESEARCH

The Potential Bond Bear Market

June 2018

FOUR REASONS TO CONSIDER BANK LOANS

  1. Historically strong income, has been among the best in fixed income.
  2. In the past, has insulated from interest rate risk and outperformed in periods of rising rates.
  3. Historically, a lower volatility asset class.
  4. Top of the capital structure with historically high recovery rates.

The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted below. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. For performance information current to the most recent month-end, please call toll-free 1-866- 447-4228 or visit our website, www.CatalystMF.com. The gross expense ratio for CFRIX is 1.62%.

How are you positioning your clients if we are in the start of a bond bear market?

We believe that investors might want to look at alternative fixed income strategies as a potential solution, such as the Catalyst Floating Rate Income Fund (CFRIX), which was the #1 Bank Loan fund for the 1-year period ending 12/31/2017 out of 237 funds in the Morningstar Bank Loan category based on a total return of +7.24%.

Fixed income investors have felt the pain as the bond market has stumbled (as of 6/30/2018).

Fund/Index/Category Return Since Election 2018 YTD Return
CFRIX 12.65% 2.42%
Bank Loan 6.81% 1.54%
BBgBarc US Agg Bond TR -0.43% -1.62%
Morningstar Long Government -2.75% -2.99%
Morningstar Long-Term Bond 0.53% -3.70%
Morningstar Intermediate Government -1.66% -1.14%
Morningstar Intermediate-Term Bond 0.21% -1.55%

Past performance is no guarantee of future results. The referenced indices are shown for general market comparisons and are not meant to represent any fund. Investors cannot directly invest in an index; unmanaged index returns do not reflect any fees, expenses or sales charges.

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8340-NLD-10/19/2018

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