Investment Advisor: Catalyst Capital Advisors, LLC
Sub-Advisor: Perini Capital
Fund Management:
- Michael Perini: Founder and CIO of Perini Capital
- Alex Borlenghi: Portfolio Manager – Commercial Real Estate
Fund Objective
The investment objective of the Fund is to seek total return.
Experienced Management Team
Perini Capital’s investment managers have been investing with decades of experience in asset selection across the credit and capital spectrum.
Value-Oriented Approach
Fundamental credit and prepay analysis are the basis for the team’s investment decisions. The analysis is conducted via an in-depth review of collateral and structural features of securities with the goal of purchasing at a significant discount to fundamental value with the intent of providing a margin-of-safety.
Fund Structure Offers Potential Benefits
Given the interval fund structure, the team has the ability to take advantage of opportunities in the market without the concern of being a forced seller.
Fund Management
Fund Expenses
| Share Class | Class I |
|---|---|
| Prospectus Gross Expense Ratio | 3.06% |
| Prospectus Net Expense Ratio | 1.99% |
| Adjusted Expense Ratio | 1.99% |
The advisor has contractually agreed to waive fees and/or reimburse expenses of the Fund to the extent necessary to limit total annual fund operating expenses (excluding brokerage costs; acquired fund fees and expenses; borrowing costs such as (a) interest and (b) dividends on securities sold short; taxes and, extraordinary expenses, such as regulatory inquiry and litigation expenses) at 2.24%, 2.99% and 1.99% for Class A shares, Class C shares and Class I shares, respectively, through January 31, 2026.
Disclosures
Important Information
There is no assurance that the Fund will achieve its investment objective.
Past performance is not a guarantee of future results.
An investor should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information about the Catalyst Funds can be found in the Fund’s prospectus, which can be obtained by calling 1-866-447-4228. Please read the prospectus carefully before investing.
Shares of the Fund are not listed on any securities exchange, which makes them inherently illiquid.
There is no secondary market for the Fund’s shares, and it is not anticipated that a secondary market will develop. As a result of the foregoing, an investment in the Fund’s shares is not suitable for investors who cannot tolerate risk of loss or who require liquidity, other than liquidity provided through the Fund’s repurchase policy. Moreover, shares of the Fund are not redeemable.
Although the Fund offers to repurchase at least 5% of outstanding shares on a quarterly basis in accordance with the Fund’s repurchase policy, the Fund is not required to repurchase shares at a shareholder’s option nor are shares exchangeable for units, interests or shares of any security. Moreover, the Fund is not required to extend, and shareholders should not expect the Fund’s Board of Trustees to authorize, repurchase offers in excess of 5% of outstanding shares. Accordingly, regardless of how the Fund performs, an investor may not be able to sell or otherwise liquidate his or her shares whenever such investor would prefer and, except to the extent permitted under the quarterly repurchase offer, will be unable to reduce his or her exposure on any market downturn.
Below-investment-grade instruments (“junk” bonds), non-agency mortgage-backed securities, securities that are rated in the lower rating categories or are unrated in which the Fund will invest may be difficult to value and may be illiquid. Please see “High Yield Risk” in the Risk Factors section of the Prospectus, starting on page 10.
The Fund is not intended to be a complete investment program.
Investing in the Fund carries certain risks. The Fund will invest a percentage of its assets in derivatives, such as futures and options contracts. The use of such derivatives and the resulting high portfolio turnover 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 contracts, options and hedging strategies. Investing in commodities markets may subject the Fund to greater volatility than investments in traditional securities. 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 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.
Residential and Commercial Mortgage-Backed, and Asset-Backed Securities Risk
Because the Fund concentrates its investment in mortgage-related securities, the Fund is subject to a greater risk of loss as a result of adverse economic, business, political, environmental or other developments than if their investments were diversified across different industries. Prepayment risk is associated with mortgage-backed and asset-backed securities. Commercial mortgage-backed securities are less susceptible to prepayment risk because underlying loans may have prepayment penalties or prepayment lock out periods. If interest rates fall, the underlying debt may be repaid ahead of schedule, reducing the value of a Fund’s investments. If interest rates rise, there may be fewer prepayments, which would cause the average bond maturity to rise, increasing the potential for the Fund to lose money. The value of these securities may be significantly affected by changes in interest rates, the market’s perception of issuers, and the creditworthiness of the parties involved.
Fixed Income Securities Risk
When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. In general, the market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates than shorter-term securities.
Shares of the Fund are not listed on any securities exchange, which makes them inherently illiquid. There is no secondary market for the Fund’s shares, and it is not anticipated that a secondary market will develop. As a result of the foregoing, an investment in the Fund’s shares is not suitable for investors who cannot tolerate risk of loss or who require liquidity, other than liquidity provided through the Fund’s repurchase policy. Moreover, shares of the Fund are not redeemable. Although the Fund offers to repurchase at least 5% of outstanding shares on a quarterly basis in accordance with the Fund’s repurchase policy, the Fund is not required to repurchase shares at a shareholder’s option nor are shares exchangeable for units, interests or shares of any security.
Fees are calculated on a net asset basis, not a total asset basis.
Distributed by Foreside Fund Services, LLC.
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