Huntington, New York - June 13, 2017 - Catalyst Funds, an alternative-focused mutual fund company, today announced it will acquire the Exceed Defined Shield Index Fund. The acquisition will rebrand the mutual fund as the Catalyst Exceed Defined Shield Fund (SHIIX). It will maintain the same investment strategy as its predecessor.
The Catalyst Exceed Defined Shield Fund seeks to track, before fees and expenses, the performance of the NASDAQ Exceed Defined Protection Index. It attempts to do this by investing in put and call options to gain exposure to the S&P 500 Index, with positions that seek to limit losses and seek upside participation on an annual basis.
"The acquisition of the Exceed Defined Shield Fund expands Catalyst’s portfolio of distinct, alternative investment strategies with a proven track record,” said Jerry Szilagyi, CEO of Catalyst Funds. “The Exceed team has developed strategies that allow portfolios to seek to hedge against bear markets, while attempting not to sacrifice profits on the upside. We think this is an important portfolio management tool and one that we want to offer investors alongside Catalyst’s range of alternative investment strategies."
SHIIX’s strategy tracks a basket of four rolling “defined outcome” investments, which meet two specific characteristics. The first seeks to limit losses to approximately the first 12.5% of S&P 500 Index losses on an annualized basis. The second, seeks annual upside participation in the S&P 500 Index to a maximum gain of 15%, even if annual S&P 500 Index performance surpasses that percentage. For investors, this means the Fund will seek to provide a limit to losses during extreme market declines, while potentially providing profit during market upswings. SHIIX will continue to be managed by Joe Halpern.
This is the second fund that Catalyst co-advises with Exceed; the first was the Catalyst Exceed Defined Risk Fund (CLPAX). The Defined Risk Fund seeks capital appreciation by attempting to track the NASDAQ Exceed Defined Index. The strategy uses options to seek upside participation of 150% of the S&P 500 Index up to a cap while attempting to protect against the first 10% of losses. For more information on this acquisition, and Catalyst Fund’s other offerings, please visit: www.catalystmf.com.
About Catalyst Funds
Catalyst Funds currently offers 25 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 on Catalyst Funds and its various offerings, 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.
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.
There is no assurance that the Fund will achieve its investment objective.
Even a small investment in derivatives (which include options, futures and other transactions) may give rise to leverage risk (which can increase volatility and magnify the Fund’s potential for loss), and can have a significant impact on the Fund’s performance. Derivatives are also subject to credit risk (the counterparty may default) and liquidity risk (the Fund may not be able to sell the security or otherwise exit the contract in a timely manner). Counterparty risk is the risk that a counterparty to a financial instrument held by the Fund or by a special purpose or structured vehicle invested in by the Fund may become insolvent or otherwise fail to perform its obligations, and the Fund may obtain no or limited recovery of its investment, and any recovery may be significantly delayed.
Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund’s portfolio. The Fund is non- diversified and may invest a greater percentage of its assets in a particular issue and may own fewer securities than other mutual funds. The performance of the Fund may be subject to substantial short term changes. There are risks associated with the sale and purchase of call and put options. As the buyer of a put option, the Fund assumes the risk of a rise in the market price of the underlying security above the exercise price of the option which will cause a loss of the premium paid for the option. As a seller (writer) of a put option, the Fund will lose money if the value of the security falls below the strike price. Fixed income securities will fluctuate with changes in interest rates. There are risks associated with the sale and purchase of call and put options. These factors may affect the value of your investment.