Catalyst Funds Launches Catalyst/Teza Algorithmic Allocation Income Fund
New Multi-Asset Fund Utilizes Machine Learning Technology and Proprietary Algorithm
Huntington, New York – February 11, 2020 – Catalyst Funds, an alternative-focused mutual fund company, today announced the launch of the Catalyst/Teza Algorithmic Allocation Income Fund (TEZIX). Utilizing an algorithmic machine learning technology designed by sub-advisor Teza Investments, the Fund invests in globally diversified multi-assets with a target risk exposure of 9% to 12% portfolio volatility.
TEZIX provides diversified exposure, with investments across up to 39 major global asset classes, including equity indexes, government bond interest rates and commodities such as energy, precious metals, base metals, agriculture and grains. The actively managed Fund uses a trading strategy based on a proprietary algorithm and rebalances positions and risk exposure, generally daily, in response to certain market conditions such as strong positive correlation between stocks and bonds or changes in that correlation. TEZIX’s strategy, which seeks long-term capital appreciation and current income, is designed to improve upon static risk models, which are rebalanced less frequently and, as a result, may deliver less consistent levels of risk exposure.
Following a systematic investment process, TEZIX utilizes an algorithmic machine learning technology that was developed by the team at Teza Capital Management LLC, which includes 23 researchers across three offices with a combined 160+ years of scientific/academic research. Using a scientific and process-oriented approach to analyze market information and risk metrics, the Fund targets a range of 9% to 12% annualized volatility, or the statistical measure of the magnitude of changes in the Fund’s returns without regard to the direction of the returns.
“As markets move into uncharted territory, with uncertainty abounding, multi-asset exposure is more important than ever,” said Jerry Szilagyi, CEO of Catalyst Funds. “The Catalyst/Teza Algorithmic Allocation Income Fund leverages the deep expertise of the Teza Investment team, along with a proven, sophisticated quantitative strategy to provide actively managed diversification across a wide span of assets. This diversified exposure, with the added benefit of machine learning insight, broadens a portfolio’s allocation, thus minimizing the risk associated to any one asset class.”
TEZIX uses proprietary risk-scaling tools to dynamically reduce exposure to either long positions in equity index or government bond interest rate futures based on market conditions. The commodities portion of the strategy invests in long or short positions in commodities futures contracts.
Dr. Mikhail Malyshev, PhD, former managing director and global head of high frequency trading at Citadel Investment Group, L.L.C., and Dr. Reinhold Gebert, Ph.D., serve as the portfolio managers of this Fund. The Catalyst/Teza Algorithmic Allocation Income Fund trades under the tickers TEZIX, TEZAX and TEZCX. For more information on this fund, and Catalyst’s range of mutual fund offerings, please visit: www.catalystmf.com.
About Catalyst Funds
Catalyst Funds currently offers 24 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.
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 1-866-447-4228 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. The Fund is a new mutual fund and has a limited history of operations for investors to evaluate. Investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategies. 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 Fund is subject to concentration risk. The fund’s performance may be volatile as the Fund’s performance may be subject to substantial changes, both long term and short term. The Advisor executes a portion of the Fund’s strategy by investing up to 25% of its total assets in a wholly-owned and controlled subsidiary. The subsidiary will not be registered under the 1940 Act and, unless otherwise noted in the Prospectus, will not be subject to all of the investor protections of the 1940 Act. Your cost in investing in the fund will be higher because the investor indirectly bears the expenses of the Subsidiary by virtue of the Fund’s investment in the Subsidiary. Investments in commodities and futures may be especially volatile. The risk of loss in trading commodities and futures can be substantial. Investors should carefully consider whether such trading is suitable for their financial condition. These factors may affect the value of your investment.