Catalyst/Exceed Defined Shield Fund Receives Four-Star Rating from Morningstar After Achieving 3-Year Track Record
Huntington, NY – May 10, 2018 – Catalyst Funds, an alternative-focused mutual fund company, today announced that the Catalyst/Exceed Defined Shield Fund (SHIIX) received a four-star rating from Morningstar for the period ending April 30, 2018, based on three-year risk-adjusted returns out of 81 funds in the Options-Based category. The Fund, which implements a distinct defined outcome strategy, is sub-advised by Exceed Advisory, LLC.
“Catalyst is pleased that the Catalyst/Exceed Defined Shield Fund has received a four-star rating from Morningstar when the fund reached its three-year track record,” said Jerry Szilagyi, CEO of Catalyst Funds. “The Exceed team has developed strategies that allow portfolios to seek to hedge against bear markets while attempting to avoid sacrificing profits on the upside. We believe that this is an important portfolio management tool and one that we want to offer investors alongside Catalyst’s range of alternative investment strategies.”
SHIIX’s strategy tracks a basket of four rolling “defined outcome” investments, which meet two specific characteristics. The first seeks to limit losses to approximately the first 12.5% of S&P 500 Index losses on an annualized basis. The second, seeks annual upside participation in the S&P 500 Index to a maximum gain of 15%, even if annual S&P 500 Index performance surpasses that percentage. For investors, this means the Fund will seek to provide a limit to losses during extreme market declines while potentially providing profit during market upswings. The Fund trades under the tickers SHIIX, SHIEX, and SHINX.
“Exceed Investments was founded to introduce an alternative method in providing defined outcome investing through combining the best qualities of a structured note and mutual fund” stated Joe Halpern, portfolio manager of the Fund and CEO of Exceed Advisory, LLC. “The four star Morningstar rating highlights the strong performance provided by the Catalyst/Exceed Defined Shield product over the period relative to other mutual funds in its class. By taking a proven investment strategy and applying it to a mutual fund structure, our objective was to provide an easy implementation within model portfolios as well as daily liquidity. Our three-year record goes a long way in documenting the benefits and power of our approach.”
Catalyst and Exceed Advisory have also partnered to offer the Catalyst/Exceed Defined Risk Fund (CLPFX). The strategy uses options in seeking to provide a buffer against the first 10% of losses of the S&P 500 while attempting to provide upside participation of 150% up to a cap. The Fund trades under the tickers CLPAX, CLPCX and CLPFX. For more information on SHIIX, CLPFX and Catalyst Fund’s other offerings, please visit: www.catalystmf.com.
About Catalyst Funds
Catalyst Funds currently offers 25 distinctive funds that provide various strategies with the goal of producing income- and equity-oriented returns while seeking to control risk and volatility. Catalyst offers these exclusive strategies through a team of in-house portfolio managers and boutique institutional investment management partners. The firm strives to provide innovative strategies to support financial advisors and their clients in meeting the investment challenges of an ever-changing global market environment. For more information on Catalyst Funds and its various offerings, please visit: www.catalystmf.com.
Catalyst/Exceed Defined Shield Fund Performance as of April 30, 2018
|Share Class||YTD||1 Year||2 Year||3 Year||Since Inception|
|Class A w/ Sales Charge||-6.49%||2.18%||6.24%||3.33%||3.05%|
Catalyst/Exceed Defined Shield Fund Performance as of March 31, 2018
|Share Class||QTD||YTD||1 Year||2 Year||Since Inception|
|Class A w/ Sales Charge||-6.96%||-6.96%||2.49%||6.13%||2.97%|
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 funds prospectus please call the fund, toll free at 1-866-447-4228. You can also obtain a prospectus at www.CatalystMF.com.
Mutual Funds have investment risks including loss of principal. There is no guarantee the Fund will meet its objective. Investing in the commodities markets can subject the Fund to potentially greater volatility than traditional securities. Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions and different governmental and accounting standards.
Please consider the Fund’s investment objectives, risks and charges carefully before investing. This and other important information about the Catalyst Funds can be found in the Fund’s current prospectus, which may be obtained by calling your Financial Advisor or shareholder services at 866-447-4228. Please read the prospectus carefully before investing. The Catalyst Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC.
There is no assurance that the Fund will achieve its investment objective.
Even a small investment in derivatives (which include options, futures and other transactions) may give rise to leverage risk (which can increase volatility and magnify the Fund’s potential for loss) and can have a significant impact on the Fund’s performance. Derivatives are also subject to credit risk (the counterparty may default) and liquidity risk (the Fund may not be able to sell the security or otherwise exit the contract in a timely manner). Counterparty risk is the risk that a counterparty to a financial instrument held by the Fund or by a special purpose or structured vehicle invested in by the Fund may become insolvent or otherwise fail to perform its obligations, and the Fund may obtain no or limited recovery of its investment, and any recovery may be significantly delayed.
The Morningstar RatingTM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.
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 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 performance of the Fund may be subject to substantial short-term changes. There are risks associated with the sale and purchase of call and put options. As the buyer of a put option, the Fund assumes the risk of a rise in the market price of the underlying security above the exercise price of the option which will cause a loss of the premium paid for the option. As a seller (writer) of a put option, the Fund will lose money if the value of the security falls below the strike price. Fixed income securities will fluctuate with changes in interest rates. There are risks associated with the sale and purchase of call and put options. These factors may affect the value of your investment. 4540-NLD-5/9/2018