Catalyst Enhanced Income Strategy Fund Class I (EIXIX)

Overview

This financial entity operates with a focus on achieving its investment objective by extensively investing in a diverse mix of asset-backed securities, including both agency and non-agency commercial and residential mortgage backed securities (MBS). The fund's investment strategy does not restrict its engagement with securities of any particular credit quality, thereby welcoming investments in distressed asset backed securities and other below investment grade securities, commonly known as "junk". This approach signifies a high-risk, high-reward investment philosophy that aims to capitalize on various fixed income markets. Furthermore, the fund is open to holding up to 15% of its net assets in illiquid securities, implying an investment in assets that may not be easily sold or exchanged for cash without a substantial loss in value.

Products and Services

• Agency and Non-Agency MBS Investments

  The fund primarily focuses on investments in both agency and non-agency commercial and residential mortgage-backed securities. This includes securities that are backed by mortgages sanctioned by government-sponsored enterprises (GSEs) as well as those that are not guaranteed by such entities. By diversifying its portfolio across these sectors, the fund aims to capture value from various facets of the housing market.

• Fixed Income Asset-Backed Securities

  Investments are not limited to mortgage-backed securities. The fund extends its reach to other fixed income asset-backed securities, enriching its portfolio with assets backed by aircraft, automobiles, credit card receivables, and student loans. This broad range of investments is designed to spread risk and take advantage of opportunities in different sectors of the asset-backed securities market.

• Investments in Distressed and Below Investment Grade Securities

  The fund's strategy includes the acquisition of distressed asset backed securities and other below investment grade securities without limitation. This indicates a willingness to engage in higher-risk investments that have the potential for substantial returns. "Junk" securities, while riskier, can offer higher yields compared to investment-grade securities, targeting investors who are willing to tolerate potential volatility for the possibility of higher gains.

• Illiquid Securities Holdings

  With the ability to allocate up to 15% of its net assets in illiquid securities, the fund positions itself to potentially benefit from investments that are not quickly convertible to cash. This strategy may involve higher risk, as these investments can be harder to sell or may require a sale at a significant discount. However, it also opens up opportunities to invest in assets that might be undervalued or have the potential for significant appreciation over time.