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Catalyst Funds launches Catalyst Enhanced Income Strategy Fund

Tuesday, February 05, 2019
Opalesque Industry Update - Catalyst Funds, an alternative-focused mutual fund company, today announced the launch of the Catalyst Enhanced Income Strategy Fund (EIXIX). The Fund employs an income-focused strategy that invests in a variety of non-traditional income asset classes.

EIXIX invests primarily in agency and non-agency residential mortgage backed securities (RMBS) as well as other asset-backed income securities, including securities backed by aircraft, automobiles, credit card receivables and student loans. Under normal circumstances, the Fund will invest over 25% of its assets in agency and non-agency RMBS and will diversify geographically and among the servicing institutions that service or originate these securities. The Fund's objective is current income.

"With interest rates on the rise, there couldn't be a more opportune time for the Catalyst Enhanced Income Strategy Fund to debut," said Jerry Szilagyi, CEO of Catalyst Funds. "This Fund offers investors an income-oriented strategy fueled by alternative sources such as mortgage backed securities that can provide insulation from the impact of rising rates. Catalyst welcomes this strategy to our family of funds and is proud to offer investors another alternative income investment strategy."

Determination for investment allocation is based on market supply and which asset classes the management team views as offering the best risk-adjusted values in the marketplace at a given time. Risk/return opportunity is analyzed based on a variety of factors including collateral quality, duration, structure, excess interest, credit support, potential for greater upside and less downside capture, liquidity and market conditions and favors undervalued investments that can produce consistent returns in most interest rate environments.

The investment strategy is designed to include a distribution policy of twelve monthly distributions to shareholders. The level of monthly distributions (including any return of capital) is not fixed and is not designed to generate a fixed percentage of the Fund's current net asset value per share.

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