HUNTINGTON, N.Y.--(BUSINESS WIRE)--Catalyst Funds, an alternative-focused mutual fund company, has partnered with BNP Paribas to create the BNP Paribas Catalyst Systematic Alpha Index™ (the “BNPP CASA Index”). Additionally, Catalyst has launched the Catalyst Systematic Alpha Fund (ATRAX), which provides exposure to the newly-created BNPP CASA Index.
The BNPP CASA Index allocates between seven different strategies developed by BNP Paribas’ Quantitative Investment Strategies (QIS) group, each specifically designed to harvest non-traditional sources of returns. Using a rules-based, risk-budget model, the BNPP CASA Index systematically allocates across each of these strategies, as frequently as daily, designed to adapt to various market conditions. Although the BNPP CASA Index synthetically invests across equities, fixed-income, commodities and currencies, it is designed to offer a low correlation to these markets.
The ATRAX fund invests in securities that provide exposure to the BNPP CASA Index, mainly non-exchange-traded total return swap contracts. The Fund also employs active management of a fixed income portfolio. The Fund’s strategy, like the BNPP CASA Index, seeks to achieve long-term capital appreciation with low correlation via exposure to systematic positions that generate uncorrelated alpha through a multi-risk premia strategy.
“We are excited to partner with the BNP Paribas QIS team, which has been a leader and a pioneer in developing rules-based systematic investment strategies,” said Jerry Szilagyi, CEO of Catalyst Funds.
“The newly-created BNPP CASA Index leverages recognized risk premia strategies and offers investors a diversified, low-correlated source of returns. The Catalyst Systematic Alpha Fund is based on this index, and for the first time, gives all investors access to a sophisticated, diversified strategy once available only to accredited investors.”
For more information on the BNPP CASA Index and ATRAX, 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.
About BNP Paribas
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 74 countries, with more than 190,000 employees, including more than 146,000 in Europe. The BNP Paribas Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The BNP Paribas Group helps all its clients (individuals, community associations, entrepreneurs, small and medium sized enterprises, corporates and institutional clients) to realize their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the BNP Paribas Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is a leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Catalyst Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 866-447-4228 or at www.CatalystMF.com. The prospectus should be read carefully before investing. The Catalyst Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Catalyst Capital Advisors, LLC is not affiliated with Northern Lights Distributors, LLC.
There is no assurance that the Fund will achieve its investment objective.
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 turnover 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 the commodities markets may subject the Fund to greater volatility than investments in traditional securities. There are risks associated with the sale and purchase of call and put options. Emerging market securities tend to be more volatile and less liquid than securities traded in developed countries. The Fund invests in the securities of foreign companies which are generally not subject to the same regulatory requirements and have different accounting, auditing and financial reporting standards from those applicable to U.S. companies. The performance of the Fund may be subject to substantial short term changes. Because the Fund invests in affiliated underlying funds, unaffiliated underlying funds, or a combination of both, the Advisor is subject to conflicts of interest in allocating the Fund's assets among the underlying funds. Investments in underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations. The Fund may invest in lower-quality, non-investment grade bonds (also known as "junk" bonds). Lower-quality debt securities involve greater risk of default or price changes due to changes in the credit quality of the issuer. Interest rate risk is the risk that bond prices in general fall when interest rates rise. These factors may affect the value of your investment.
BNP Paribas does not sponsor, endorse, sell, or promote any investment fund or other vehicle that is offered by third parties and that seeks to provide an investment return based on the returns of the BNP Paribas Catalyst Systematic Alpha Index. A decision to invest in any such investment fund or other vehicle should not be made in reliance on any of the statements set forth in this document. Prospective investors are advised to make an investment in any such fund or vehicle only after carefully considering the risks associated with investing in such funds, as detailed in an offering memorandum or similar document that is prepared by or on behalf of the issuer of the investment fund or vehicle. You cannot invest directly in an index.
4050-NLD-1/9/2018
