Fund Description and Objective
The Catalyst Enhanced Income Strategy Fund seeks to generate current income via investments in often overlooked segments of non-agency residential mortgage backed securities (RMBS) and other fixed income asset-backed securities.
The Fund’s objective is current income.
Non-Agency RMBS Focus
The Fund focuses on non-agency RMBS, although the Fund can invest where management finds value. The management team’s clearly-defined, niche focus is the core of the RMBS strategy’s success.
Seeks Best Risk/Return Opportunity
The Sub-Advisor selects securities that it believes offer the best risk/return opportunity based on its analyses of a variety of factors, including collateral quality, duration, structure, excess interest, credit support, potential for greater upside and less downside capture, liquidity, and market conditions. The Fund favors undervalued investments that have the potential for consistent returns in most interest rate environments.
Monthly Distribution
The Fund generally distributes to shareholders substantially all of its net income (for example, interest and dividends) monthly as well as substantially all of its net capital gains annually (that is, long-term capital gains from the sale of portfolio securities and short-term capital gains from both the sale of portfolio securities and option premium earned). However, all or a portion of a distribution may consist of a return of capital (i.e., from your original investment).
