Catalyst/CIFC Floating Rate Income Fund Class C-1 (CFRFX)

Overview

This fund focuses on a specific segment of the investment market, specializing in U.S. dollar-denominated floating rate secured loans and other floating rate debt instruments. Its investment strategy is designed to take advantage of the dynamic movements in interest rates, thereby providing a measure of protection against the volatility typically associated with fixed-rate securities. By investing at least 80% of its net assets (in addition to utilizing borrowings for investment purposes) in a variety of floating rate instruments, the fund aims to deliver consistent returns to its investors. The fund's orientation towards floating rate secured loans and related instruments reflects a robust approach to tapping into the corporate debt market, both within the U.S. and internationally, offering a diversified investment vehicle that caters primarily to investors looking for exposure to floating rate debt assets.

Products and Services

• Floating Rate Secured Loans: These are loans made to businesses that feature interest rates which fluctuate over time, typically based on a benchmark interest rate. This product is secured by collateral, offering a level of protection to the fund's investments.
• Floating Rate Bonds: These bonds have variable interest rates, which adjust at predefined intervals. This flexibility allows the fund to adapt to changing interest rate environments, potentially mitigating the risk of interest rate fluctuations.
• Floating Rate Notes and Debentures: Similar to floating rate bonds, these instruments offer variable interest payments. Notes tend to have shorter maturities than bonds, while debentures are unsecured, providing a range of options for different risk appetites and investment horizons.
• Asset-Backed Securities (ABS) Tranches: This segment includes various tranches of structured notes and other types of asset-backed securities that have floating interest rates. These are linked to pools of assets like loans or receivables, adding a layer of diversification to the investment strategy.
• Investments in Other Funds: The fund allocates part of its portfolio to invest in other investment companies, including exchange-traded funds (ETFs), that primarily focus on floating rate assets. This allows for further diversification and access to a broader range of floating rate instruments across different market segments and geographical areas.