Catalyst/Millburn Hedge Strategy Fund (MBXIX) Brings Proven Investment Strategy to Retail Market
Huntington, NY – April 19, 2016 – Catalyst Funds, an alternative-focused mutual fund company, today announced the conversion of a fifth hedge fund product to a mutual fund, the Catalyst/Millburn Hedge Strategy Fund (MBXIX). It is the latest alternative offering from Catalyst that brings an investment strategy once only available to accredited investors to the retail marketplace. Since the fund’s inception in 1997, it has generated an 11.36% net annualized return compared to 7.44% for the S&P 500 TR Index.
MBXIX trades a diverse portfolio of global equity, currency and interest rate instruments, as well as futures contracts on commodities in the energy, metal and agricultural sectors. The fund implements a 100% systematic strategy with the potential to invest in over 125 markets. MBXIX is sub-advised by Millburn Ridgefield Corporation and maintains the same investment management team as its hedge fund predecessor.
“Catalyst is committed to bringing unique investment strategies to the retail mutual fund marketplace, and this latest conversion speaks directly to that commitment,” said Jerry Szilagyi, CEO of Catalyst Funds. “MBXIX has achieved consistent performance over the last 19 years with only one down year, including positive returns in 2000, 2001, 2002 and 2008. Now in its mutual fund form, this proven investment strategy is available to investors who would otherwise not have access to it.”
The fund's portfolio is comprised of two distinct components: Active Long/Short Futures & FX and Strategic Equity Exposure. The former yields a portfolio of global liquid instruments and strategies that historically have performed in periods of stress for equities. The active long/short futures and forward positions in currency, fixed income, stock index and commodity instruments are determined by multi-factor, quantitative and systematic trading and investment strategies, which respond to different market conditions.
The Strategic Equity Exposure Component yields a relatively passive portfolio of global and U.S. exchange traded funds ("ETFs"). The equity positions generally consist of relatively passive buy-and-hold strategies with the goal of maximizing diversification as determined primarily by correlation and risk analysis.
MBXIX is currently open for investments. For more information on MBXIX and Catalyst’s range of alternative investment strategies, please visit: www.catalystmf.com.
About Catalyst Funds
Catalyst Funds currently offers 27 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, please visit: www.catalystmf.com.
Mutual Funds have investment risks including loss of principal. There is no guarantee the Fund will meet its objective. Investing in the commodities markets can subject the Fund to potentially greater volatility than traditional securities. Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions and different governmental and accounting standards. The Fund has a limited history of operations as a mutual fund for investors to evaluate.
Please consider the Fund’s investment objectives, risks and charges carefully before investing. This and other important information about the Catalyst Funds can be found in the Fund’s current prospectus, which may be obtained by calling your Financial Advisor or shareholder services at 866-447-4228. Please read the prospectus carefully before investing. The Catalyst Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC.
Annualized Return Performance for MBXIX as of March 31, 2016:
1 Year: 2.86%
5 Years: 6.41%
Since 1/1/1997: 11.36%
The Fund’s maximum sales charge for Class “A” shares is 5.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the fund’s prospectus please call the fund, toll free at 1-866-447-4228. You can also obtain a prospectus at www.CatalystMF.com.
There is no assurance that the Fund will achieve its investment objective. You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
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 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. Investing in commodities markets may subject the Fund to greater volatility than investments in traditional securities. Currency trading risks include market risk, credit risk and country risk. Foreign investing involves risks not typically associated with U.S. investments. 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.
Performance shown before December 28, 2015 is for the Fund's Predecessor Fund (Millburn Hedge Fund, L.P.). The prior performance is net of management fees and other expenses including the effect of the performance fee. The Predecessor Fund had an investment objective and strategies that were, in all material respects, the same as those of the Fund, and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. From its inception through December 28, 2015, the Predecessor Fund 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 Fund was not subject to sales loads that would have adversely affected performance. Performance of the predecessor fund is not an indicator of future results.
S&P 500 TR Index is used to represent the U.S. large-cap stock market.