New Catalyst fund invests in firms whose insiders buy company stock

By Toni Weeks

San Luis Obispo, Calif., April 22 - Catalyst Funds announced its plans to offer a new fixed-income, investment-grade fund, the Catalyst Insider Income Fund, in July.

According to an N-1A filing with the Securities and Exchange Commission, the fund will seek high current income with low interest rate sensitivity by investing primarily in short-term U.S. corporate bonds issued by corporations whose executives are purchasing shares of the company's common stock. The fund may invest in corporate bonds of any credit quality, effective maturity or average modified duration but will emphasize those with an average Standard & Poor's credit rating of BBB or higher, an average effective maturity of less than four years and an average modified duration of less than three and a half years.

David Miller will be the portfolio manager.

The fund will offer class A, class C and class I shares. The ticker symbols have not been set.

Shareholder fees will include a 5.75% sales load and a 1% deferred sales load on class A shares.

Including management fees of 1% and the effects of a fee waiver agreement, total annual fund operating expenses are expected to be 1.45% for class A, 2.2% for class C and 1.2% for class I shares.

Huntington, N.Y.-based Catalyst Capital Advisors LLC will be the fund's investment adviser.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.