Catalyst Absolute Total Return Fund
March 31, 2015
Class A: ATRAX | Class C: ATRCX | Class I: ATRFX
INVESTMENT OPPORTUNITY
The Catalyst Absolute Total Return Fund seeks to provide maximum risk-adjusted income and growth by investing in instruments with
sustainable and rising income streams while using covered call options in an attempt to manage risk.
PRIMARY GOALS AND KEY REASONS TO INVEST
 Sustainable and Growing Income Streams: The Fund seeks to provide reliable and growing
income through a broad range of income-oriented investments, including high dividend common
stock, REITs, MLPs, preferred stock, CEFs, ETFs, bonds, and covered call options.
 Risk Management: By implementing a long/short equity strategy, we seek to manage risk in all
market conditions. We may use covered call options, out-of-the-money put options or short selling
in an attempt to capture the upside while limiting exposure to the market downside.
 Low Correlation: We seek to provide returns that exhibit low correlation to both the broader
equity markets and the broader bond markets.
OBJECTIVE
To achieve sustainable income and
growth by implementing an alpha-driven
investment process focusing on
instruments that pay growing dividends
and cash distributions as well as
companies that reduce outstanding sharecounts.
INVESTMENT STRATEGY
Demand for reliable income keeps
1. Calculate the following characteristics for each firm within investment universe: dividend yield, change in growing because of aging American
outstanding share-count and change in long-term debt/share.
workers. However, reliable income
2. Identify firms within universe that are likely to: increase cash dividend, increase cash distributions to instruments are less and less available
publicly-traded partnerships and/or decrease share-count over next 12-24 months.
due to declines in bond yields. In an
3. Rank firms by a) Risk to current dividend and/or cash distribution to publicly-traded partnership and b) Riskattempt to take advantage of these two
adjusted total return potential over next 12-24 months.
trends, the Fund invests in companies
4. Dynamically adjust allocations to selected investment categories within universe according to rankings.
that are likely to either increase
5. Set specific "buy" price as well as upside and downside "sell" prices for each holding.
6. Sell covered call options or out-of-the-money put options for select holdings, as determined by potential dividends and cash distributions and/or
consistently reduce outstanding sharepremium and other factors.
counts. We have found that successfully
Growth of $10,000
identifying these firms provides the
potential to generate consistent total
$11,000
return.
INVESTMENT PROCESS
$10,500
$10,000
$9,500
$9,000
07-2014
10-2014
ATRFX
01-2015
04-2015
07-2015
Morningstar Long/Short Equity Category
Performance: Ending March 31, 2015 (not annualized if less than 1 year)
Since Inception*
Share Class
3 Months
6 Months
YTD
-0.97%
Class I
0.82%
-1.75%
0.82%
-1.21%
Class A
0.61%
-1.89%
0.61%
-1.65%
Class C
0.51%
-2.24%
0.51%
2.20%
Morningstar Long/Short Equity
1.22%
2.57%
1.22%
8.62%
S&P 500 TR Index
0.95%
5.93%
0.95%
-6.89%
Class A with Sales Charge
-5.21%
-7.50%
-5.21%
* Inception: 07/31/2014
The Fund’s maximum sales charge for Class “A” shares is 5.75%. Investments in mutual funds
involve risks. Performance is historic and does not guarantee future results. Investment return
and principal value will fluctuate with changing market conditions so that when redeemed, shares
may be worth more or less than their original cost. Current performance may be lower or higher
than the performance data quoted. To obtain the most recent month end performance information
or the funds prospectus please call the fund, toll free at 1-866-447-4228. You can also obtain a
prospectus at www.CatalystMF.com.
www.CatalystMF.com
The Fund intensively follows a range of
investment categories that meet the
above criteria. The Fund ranks each
category in terms of risk-adjusted total
return potential and sets the allocation to
each category according to this ranking.
In order to control risk, the Fund sells
covered call options that appear to offer
attractive premiums.
There is no assurance that the Fund will achieve
its investment objective. You cannot invest directly
in an index and unmanaged index returns do not
reflect any fees, expenses or sales charges.
Share Class
Class A
Class C
Class I
Ticker
CUSIP
ATRAX 62827M433
ATRCX 62827M425
ATRFX 62827M417
866-447-4228
Catalyst Absolute Total Return Fund
March 31, 2015
Class A: ATRAX | Class C: ATRCX | Class I: ATRFX
Top Holdings
Invesco IG NY Municipals
Philip Morris Int'l Inc
Nuveen NASDAQ 100 Dynamic
WisdomTree Europe Hedged
Nuveen OH Quality Inc Muni
Federated Premier Muni Income
Tekla Healthcare Opportunities
Pioneer Diversified High Income
General Electric Co
Hercules Technology Growth
3.5%
3.5%
3.4%
3.2%
2.9%
2.9%
2.7%
2.5%
2.5%
2.5%
Sector Allocation
ETF/Fund
Financials
Consumer Staples
Energy
Industrials
Utilities
Telecom Services
Health Care
Consumer Disc.
45%
31%
7%
5%
5%
2%
2%
2%
1%
Glossary & Risk Considerations:
FUND STATISTICS
ATRFX
Alpha
N/A
Beta
N/A
R-Squared
N/A
Sharpe Ratio
N/A
S&P 500
N/A
N/A
N/A
N/A
Statistics since Fund inception vs. S&P 500 TR.
PORTFOLIO CHARACTERISTICS
Long Equity Holdings:
68
Average Market Cap:
$23.2B
FUND MANAGEMENT
Investment Advisor
Catalyst Capital Advisors LLC
Investment Sub-Advisor
ATR Advisors, LLC
Alpha: A measure of the difference between a fund's actual returns and its expected performance, given its level
of risk as measured by beta. Beta: A measure of a fund's sensitivity to market movements. Duration: A measure
of a fund's sensitivity to interest rates; the higher the value of a fund's duration, the more sensitive the fund is to
changes in interest rates. R-squared: A measure of the relationship between a portfolio and its benchmark.
Sharpe Ratio: A risk-adjusted measure of a fund's performance that indicates a fund's return per unit of risk,
defining risk as volatility (standard deviation). Short Selling: The selling of a security that the seller does not
own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that
they will be able to buy the stock back at a lower price than the price at which they sold short. Standard
Deviation (Volatility): A risk metric that measures the volatility of a fund's excess returns over its benchmark;
measures volatility of both positive and negative excess returns. S&P 500 Total Return Index is used to
represent the U.S. large-cap stock market.
Shawn Blau, PhD
Portfolio Manager
▪ Principal and Portfolio Manager of
ATR; Fund P.M. since inception
▪ Co-managed portfolios using strategy
since 2003
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.catalystmutualfunds.com. The prospectus should be read carefully before investing. The
Catalyst Funds are distributed by Northern Lights Distributors, LLC, member FINRA.
Catalyst Capital Advisors, LLC is not affiliated with Northern Lights Distributors, LLC.
William Kennedy
Portfolio Manager
▪ Portfolio Manager since inception
▪ Co-managed portfolios using strategy
since joining ATR in 2009
Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the
activities and financial prospects of an individual security in the Fund’s portfolio. The Fund is
non-diversified and may invest a greater percentage of its assets in a particular issue and may
own fewer securities than other mutual funds. The performance of the Fund may be subject to
substantial short term changes. To the extent the Fund invests in the stocks of smaller-sized
companies, the Fund may be subject to additional risks, including the risk that earnings and
prospects of these companies are more volatile than larger companies. Smaller-sized companies
may experience higher failure rates than larger companies and normally have lower trading
volume than larger companies. There are risks associated with the sale and purchase of call and
put options. If a security sold short increases in price, the Fund may have to cover its short
position at a higher price than the short sale price, resulting in a loss. The Fund may invest in
lower-quality, non-investment grade bonds. Non-investment grade corporate bonds are those
rated Ba or lower by Moody's or BB or lower by S&P (also known as "junk" bonds). Lowerquality 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 overall, including the prices of
securities held by the Fund, will decline over short or even long periods of time due to rising
interest rates. Bonds with longer maturities tend to be more sensitive to interest rates than bonds
with shorter maturities. Because the Fund may invest in other investment companies, the value of
your investment will fluctuate in response to the performance of the acquired funds and may
involve certain additional expenses and certain tax results that would not arise if you invested
directly in the acquired funds. These factors may affect the value of your investment.
INVESTMENT INFORMATION
Class A Ticker:
ATRAX
Class C Ticker:
ATRCX
Class I Ticker:
ATRFX
July 31, 2014
Inception:
S&P 500 TR Index
Benchmark:
Minimum Investment
Initial:
$2,500
Subsequent:
$50
Net Expenses:*
Class A
1.99%
Class C
2.74%
Class I
1.74%
Holdings are subject to change and should not be
considered investment advice.
* The advisor has contractually agreed to waive
fees and/or reimburse expenses to maintain the
Fund’s total annual operating expense ratio at
1.74% excluding 12b-1 fees through October 31,
2015. Gross expense ratios are estimated to be
2.41%, 3.16% and 2.16% for Class A, C and I
shares respectively.
4228-NLD-4/10/2015
www.CatalystMF.com
866-447-4228