Catalyst Funds plans launch of four new funds in March

By Toni Weeks

San Diego, Jan. 13 - Catalyst Funds is planning the March launch of four new funds, according to an N-1A filing with the Securities and Exchange Commission.

The funds are the Catalyst Insider Alpha Fund, the Catalyst Event Arbitrage Fund, the Catalyst/Lyons Tactical Core Fund and the Catalyst/Lyons Hedged Premium Return Fund. Class A and class C shares will be offered for all four funds.

The Catalyst Insider Alpha Fund will seek long-term capital appreciation with low volatility and correlation to the equity market. It will invest primarily in common stocks and options of U.S. companies, taking long positions in stocks that are experiencing significant insider buying and counteracting short positions in companies that are experiencing significant insider selling.

David Miller will be the senior portfolio manager.

The Catalyst Event Arbitrage Fund will seek long-term capital appreciation with low volatility and correlation to the equity market. It will invest in securities of companies that are the focus of corporate events, such as mergers, acquisitions, restructurings, spinoff recapitalizations and other special situation investments. The fund will target long and short equity positions as well as call and put options.

Paul Rosenberg, president of Charter Management, LLC, the fund's subadviser, will be the portfolio manager.

The Catalyst/Lyons Tactical Core Fund will seek total return, consisting of long-term capital appreciation and current income, with low volatility and correlation to the equity market. The fund will tactically allocate and rebalance the portfolio among domestic equity and bond securities using a quantitative model to evaluate the equity and fixed-income market sectors. This strategy will use a combination of momentum, long-term moving averages, relative strength and other factors to invest in equities during sustained rallies and to be more defensive when weaker markets are anticipated. The fund will focus on exchange-traded funds to gain exposure to equity and fixed-income markets, rebalancing between them based on three market models.

The portfolio managers will be Louis A. Stevens and Austin Cose, both with Lyons Wealth Management, LLC, the fund's investment subadviser.

The Catalyst/Lyons Hedged Premium Return Fund will seek long-term capital appreciation with low volatility and correlation to the equity market by investing in common stocks of U.S. companies and using options to generate premium income and hedge against downside risk.

The portfolio managers will be Stevens and Cose of Lyons Wealth Management, the fund's investment subadviser.

Class A shares for all of the funds will be assessed a maximum sales charge of 5.75%, whereas class C shares will have none. Both share classes will be subject to a 1% maximum deferred sales charge.

Management fees will be 1.25% for both share classes. Including other fees and expenses and taking into account a fee waiver with the adviser through Oct. 31, 2013, total annual fund operating expenses for the Catalyst Insider Alpha, Catalyst Event Arbitrage and Catalyst/Lyons Hedged Premium Return funds will be 1.75% for class A shares and 2.5% for class C shares. For the Catalyst/Lyons Tactical Core, they will reach 1.95% and 2.7% for class A and class C shares, respectively.

Lloyd Harbor, N.Y.-based Catalyst Capital Advisors LLC will be the investment adviser to the funds.

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