Turning Midterm Election Volatility into Opportunity

History shows that midterm election years can bring uncertainty, volatility, and choppier equity markets.¹ But for systematic themed strategies like the Catalyst/Millburn Hedge Strategy Fund (MBXIX), these environments can be fertile ground.

So, how does MBXIX – a strategy that uses quantitative models to identify trends in search of the best possible outcome based on prior scenarios – typically perform?

As shown below, MBXIX has historically performed quite well in these environments – outperforming the S&P 500 in the prior four midterm election years.

What explains this relative outperformance? We see a few key reasons:

1) The Ability to Be Dynamic, Identify Trends, and Adapt

An Adaptive Process
Uses systematic concepts to respond to changing environments through observation of historical market cycles.
Not Just Static Models
Unlike traditional strategies, MBXIX continuously refines its view of markets rather than relying on fixed assumptions.
Can Be Better Positioned for Certain Scenarios and Outcomes
When similar patterns emerge year over year, the Fund can tactically position for scenarios such as heightened volatility.

2) Diversification Across Multiple Asset Classes

MBXIX invests not only in equities but also in a variety of global futures markets, including FX, commodities, and interest rates. This approach provides exposure to asset classes that don’t move in lockstep with stocks, creating opportunities for return and diversification during periods of equity stress (like we’ve seen in past midterm years). The approach is outlined below:

3) Drawdown Mitigation Through Tactical Positioning

Because MBXIX uses quantitative models to identify shifting market regimes, the strategy may tactically reposition a portion of its portfolio away from risk assets and into hedging instruments when volatility rises. The ability to systematically de-risk during turbulent periods has historically helped reduce the depth and duration of drawdowns.

Historically, MBXIX has experienced only six unprofitable three-year periods, compared to 59 such periods for the S&P 500, since inception as of September 30, 2025. Moreover, if an investor stayed invested in MBXIX for any rolling five-year period or rolling ten-year period since inception, they would have never experienced a negative return for the period, regardless of when they invested historically at month end. We believe the Fund’s ability to tactically reposition in response to shifting environments and trends is a value add for clients.

With 2026 shaping up to be another potentially volatile midterm election year, MBXIX can be a tool for advisors seeking multi-asset strategies to help clients stay invested through uncertainty.

Data as of quarter end: 2025-09-30T00:00:00

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	0.66%	1.95%	4.33%	2.47%	7.30%	5.41%	9.88%	8.42%	10.10%
Class A	0.66%	1.89%	4.20%	2.31%	7.02%	5.15%	9.62%	N/A	7.91%
Class C	0.58%	1.71%	3.81%	1.73%	6.22%	4.37%	8.79%	N/A	7.10%
Class C-1	0.59%	1.69%	3.81%	1.72%	6.23%	4.36%	N/A	N/A	9.87%
Class A w/Sales Load	-5.13%	-3.97%	-1.79%	-3.57%	0.87%	3.09%	8.33%	N/A	7.26%

Investments in mutual funds involve risks. The Fund’s maximum sales charge for Class “A” shares is 5.75%. 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 or visit www.CatalystMF.com. Total operating expenses for the A, C, and I share classes are 2.28%, 3.03%, and 2.03%, respectively.

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. Performance shown before December 28, 2015 is for the Fund’s Predecessor Fund (Millburn Hedge Fund, L.P.); please refer to important disclosures set forth below.

Past performance is not a guarantee of future results.

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. Neither Catalyst Capital Advisors LLC nor Millburn Ridgefield LLC are affiliated with Northern Lights Distributors, LLC.

Important Risk Considerations:

Investing in the Fund carries certain risks. The Fund will invest a percentage of its assets in derivatives, such as futures, forwards and options contracts. The use of such derivatives and the resulting high portfolio turn-over may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities and commodities underlying those derivatives. The Fund may experience losses that exceed those experienced by funds that do not use futures, forwards, options and hedging strategies. Investing in commodities markets may subject the Fund to greater volatility than investments in traditional securities. Currency trading risks include market risk, credit risk and country risk. Foreign investing involves risks not typically associated with U.S. investments. Changes in interest rates and the liquidity of certain investments could affect the Fund’s overall performance. The Fund is non-diversified and, as a result, changes in the value of a single security or group of securities may have significant effect on the Fund’s value. Other risks include U.S. Government securities risks and investments in fixed income securities. Typically, a rise in interest rates causes a decline in the value of fixed income securities or derivatives owned by the Fund. Furthermore, the use of leveraging can magnify the potential for gain or loss and amplify the effects of market volatility on the Fund’s share price. The Fund is subject to regulatory change and tax risks; changes to current rules could increase costs associated with an investment in the Fund. These factors may affect the value of your investment.

The Sub-Adviser’s judgments about the growth, value or potential appreciation of an investment may prove to be incorrect or fail to have the intended results, which could adversely impact the Fund’s performance and cause it to underperform relative to other funds with similar investment goals or relative to its benchmark, or not to achieve its investment goal.

Performance shown before December 28, 2015 is for the Fund’s Predecessor Fund (Millburn Hedge Fund, L.P.). The prior performance is net of management fees and other expenses, including the effect of the performance fee. The Predecessor Fund had an investment objective and strategies that were, in all material respects, the same as those of the Fund, and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. The Fund’s Sub-Adviser was the investment manager of the Predecessor Fund. From its inception through December 28, 2015, the Predecessor Fund was not subject to certain investment restrictions, diversification requirements and other restrictions of the Investment Company Act of 1940, as amended, or the Internal Revenue Code of 1986, as amended, which if they had been applicable, might have adversely affected its performance. In addition, the Predecessor Fund was not subject to sales loads that would have adversely affected performance. The Fund’s fees and expenses are expected to be higher than those of the Predecessor Fund; therefore, if the Fund’s expenses were applied to the Predecessor Fund’s performance, the performance would have been lower. Performance of the Predecessor Fund is not an indicator of future results.

¹Capital Group, 2022 Study on Midterm Election Years. Accessed September 2025:
https://www.capitalgroup.com/advisor/insights/articles/midterm-elections-markets-5-charts.html

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