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Catalyst Funds to acquire Exceed Defined Shield Fund

Thursday, June 15, 2017
Opalesque Industry Update - Catalyst Funds, an alternative-focused mutual fund company, 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.

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