Investment Advisor: Catalyst Capital Advisors, LLC
Sub-Advisor: Aspect Capital
Fund Management:
- Anthony Todd | Portfolio Manager
- Martin Lueck | Portfolio Manager
- Christopher Reeve | Portfolio Manager
- Max Xu, CFA | Portfolio Manager
Fund Objective
The Fund’s objective is to achieve long-term capital appreciation.
Enhanced Multi-Asset Approach
The Fund seeks to enhance a traditional multi-asset U.S. based 60/40 portfolio with a managed futures overlay. In addition the overlay can increase portfolio diversification while improving performance across multiple market cycles.
Managed Futures Component
A diversified trend following strategy trading over 140 markets and with the ability to hold long or short positions in each.
60/40 Component
This allocation intends to provide the Fund with a long-term, strategic broad-based exposure to liquid U.S. equity and fixed-income securities through a relatively passive, long-only approach.
Diversification Potential
The Fund seeks to achieve improved diversification compared to a traditional 60/40 portfolio through multiple avenues, namely increased asset class breadth and via the multiple time horizons which price trends are captured by the Managed Futures Component.
Uncorrelated Returns
The strategy intends to smooth out challenging periods for a traditional multi-asset portfolio by harnessing the low long-term correlation between a trend following managed futures portfolio and traditional stock and bond portfolios.
Risk Mitigating Properties
The highly liquid, directionally unbiased nature of trend following with exposure to a broad spectrum of diverse financial and commodity markets has shown strong negative correlation to equities during sustained periods of market stress.
Fund Management
Disclosures
* The annual report presents the audited actual expenses of the fund for the fiscal year. It excludes the impact of certain items that are listed as prospectus expenses, such as acquired fund fees and expenses.
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 October 31, 2025.
Glossary:
Long-only: An investment strategy that focuses on buying and holding assets for the long-term to achieve capital growth. Futures: Derivative financial contracts that obligate parties to buy or sell an asset at a predetermined future date and price. The buyer must purchase, or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date. Diversification: A risk management strategy that creates a mix of various investments within a portfolio. Short Position: Refers to a trading technique in which an investor sells a security with plans to buy it later. Shorting is a strategy used when an investor anticipates that the price of a security will fall in the short term.
Fixed income investments are affected by a number of risks, including fluctuation in interest rates, credit risk, and prepayment risk. In general, as prevailing interest rates rise, fixed income prices will fall.
The Fund’s use of futures involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) leverage risk (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the futures contract may not correlate perfectly with the underlying investment. This risk could cause the Fund to lose more than the principal amount invested.
There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.
The Fund is newly formed and has no operating history.
The Fund is non-diversified, which means it may be invested in a limited number of issuers and susceptible to any economic, political and regulatory events than a more diversified fund.
5033-NLD-1/10/2024
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