The Fund’s objective is income and long-term capital appreciation.
The Catalyst Systematic High Income Fund seeks to generate a compelling return and yield through various options strategies with excess collateral being invested into income-producing securities.
Diverse Exposure to Options Strategies
The Fund provides exposure to a basket of options strategies. Many strategies are designed to take advantage of certain inefficiencies in the market and typically have a positive carry expectation (i.e., a positive net income expectation from putting on the positions).
An Uncorrelated Yield Opportunity
The Fund’s options strategies are designed to generate yield from positive carry as well as from covered calls. This complements the income producing securities, which are typically investment grade, short duration bonds with limited interest rate sensitivity and credit risk.
Emphasis on Risk Mitigation
The Fund has been designed to mitigate downside risks through the use of techniques such as intraday delta hedging, which is a risk management strategy intended to reduce market exposure from written options by establishing offsetting positions. The Fund also may implement strategies designed to profit during equity market shocks and bear markets. The Fund’s returns will vary and there is no guarantee that such risk mitigation techniques and/or strategies will accomplish their intended results.
Investment Advisor: Catalyst Capital Advisors, LLC
David Miller | CIO & Senior Portfolio Manager
Charles Ashley | Portfolio Manager
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. Catalyst Capital Advisors, LLC is not affiliated with Northern Lights Distributors, LLC.
Mutual Funds involve risk including possible loss of principal. 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 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 contracts, options and hedging strategies. Changes in interest rates and the liquidity of certain investments could affect the Fund’s overall performance. 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.
Performance shown before September 2013 is for the Fund's predecessor limited liability company (Harbor Assets, LLC). The prior performance is net of management fees and other expenses including the effect of the performance fee. The Fund has been managed in the same style and by the same portfolio manager since the predecessor limited liability company's inception on December 15, 2005. The Fund's investment goals, policies, guidelines and restrictions are, in all material respects, equivalent to the predecessor limited liability company's investment goals, policies, guidelines and restrictions. From its inception on December 15, 2005 through the date of this prospectus, the predecessor limited liability company was not subject to certain investment restrictions, diversification requirements and other restrictions of the 1940 Act of the Code, which if they had been applicable, might have adversely affected its performance. In addition, the predecessor limited partnership was not subject to sales loads that would have adversely affected performance. Performance of the predecessor fund is not an indicator of future results.
4325-NLD-4/2/2020
