It’s human nature to want to react to the news and act when markets become volatile. But sometimes, doing nothing can be the smart move for an investor.

Take the story of Peter Lynch’s Magellan Fund. From 1977 – 1990, the Fund saw an annualized return of 29% – but the average investor in the Fund lost money during this period.¹ How could this happen? It wasn’t fees or the fault of the manager. Rather, it was the fact that investors often exited during periods of volatility, chased the latest trend, and missed subsequent rebounds. This is just another example of investors believing that market timing is a recipe for success – but in the end, many end up getting burnt.

This behavioral pattern isn’t unique to investors in the Magellan Fund – it continues today, which is why we believe staying invested in funds like the Catalyst/Millburn Hedge Strategy Fund (MBXIX) is important.

Since MBXIX’s inception in 1997, there have been zero rolling five-year or 10-year periods in which the Fund experienced a negative return. Not only has it been positive in 100% of rolling five-year periods, but it’s also delivered more than a 5% annualized return in 96% of those periods. Take a look:

On a rolling 10-year basis, the worst annualized return for MBXIX an investor saw was +4.94%.  And even in the infamous lost decade for stocks and bonds between 2000-2009, MBXIX generated a +164% total return, while the S&P 500 returned -9.1%. We believe that staying invested with a manager and a process you trust is important.

Millburn: A Pioneer in Quantitative Investing with a Proven Track Record

So why should you trust the Catalyst/Millburn Hedge Strategy Fund? Millburn has been managing quantitative investment strategies since 1971 through multiple market cycles. And while no investor’s journey will be without turbulence along the way, MBXIX investors have experienced a positive return during every rolling five-year and 10-year period, and the Fund has been positive during 98% of rolling 3-year periods.

Not only has MBXIX been positive, but when examining the returns over rolling 10-year periods vs. the S&P 500, you’ll notice it has less volatility and has always stayed in positive territory. MBXIX aims to provide risk mitigation during volatile environments, and we believe the Fund has been able to do just that for our long-term investors, as evidenced below.

So how has MBXIX achieved these returns with lower long-term volatility relative to the S&P 500? MBXIX uses machine learning and invests in a diversified portfolio with active long/short managed futures and strategic equity exposures, as outlined below:

Are you considering investing by timing the market? Instead, we believe you should stay invested and consider letting Millburn’s machine learning approach that has historically resulted in zero negative rolling 5-year and 10-year periods steer your portfolio.

Data as of quarter end: 2025-12-31T00:00:00

¹Forbes: How Investors are Costing Themselves (Published June 2, 2021). https://www.forbes.com/councils/forbesfinancecouncil/2021/06/02/how-investors-are-costing-themselves-money/

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 shares, when redeemed, 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. The Fund’s maximum sales charge for Class “A” shares is 5.75%. Total operating expenses for the A, C, and I share classes are 2.25%, 3.00%, and 2.00%, 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’s use of short positions may not be successful and the loss from short positions is potentially unlimited. Diversification does not ensure a profit or guarantee against a loss. 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.

The Fund acquired all of the assets and liabilities of Millburn Hedge Fund, L.P. (the “Predecessor Fund”) in a tax-free reorganization on December 28, 2015 (the “Reorganization:”). In connection with the Reorganization, shares of the Predecessor Fund were exchanged for Class I shares of the Fund. Performance shown before December 28, 2015 is for the Predecessor Fund. 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 adviser to 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.

Glossary:

Bear Market: a financial market experiencing prolonged price declines, generally of 20% or more.

Long/short managed futures strategy: a systematic investment approach that takes both long and short positions in futures contracts across various asset classes, such as commodities, currencies, equities, and fixed income. Managed futures refers to an investment where a portfolio of futures contracts is actively managed by professionals.

ML 3 Month T-Bill Index is used to represent the short-term U.S. Government bond market.

The S&P 500 Total Return Index® (“S&P 500 TR”) is an unmanaged index generally representing the performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Indices are unmanaged and, unlike the Fund, are not affected by cash flows. It is not possible to invest directly in an Index

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