Catalyst Funds To Acquire Exceed Defined Shield Fund

Jun 13 2017 | 10:41pm ET

Liquid alternative mutual fund specialist Catalyst Funds has announced the acquisition of the Exceed Defined Shield Fund and will rebrand it as the Catalyst Exceed Defined Shield Fund, symbol SHIIX.

The fund will maintain the same investment strategy, which is to track, before fees and expenses, the performance of the NASDAQ Exceed Defined Protection Index. It does this by investing in option positions with long and short exposure to the S&P 500 Index. These positions are structured so as to limit losses but carry upside participation on an annual basis.

Specifically, the fund tracks a basket of four rolling “defined outcome” investments, which meet two specific characteristics. The first seeks to limit losses to approximately the first 12.5% of S&P 500 Index losses on an annualized basis. The second seeks annual upside participation in the S&P 500 Index to a maximum gain of 15%, even if annual S&P 500 Index performance is greater. 

“The acquisition of the Exceed Defined Shield Fund expands Catalyst’s portfolio of distinct, alternative investment strategies with a proven track record,” said Jerry Szilagyi, CEO of Catalyst Funds. “The Exceed team has developed strategies that allow portfolios to seek to hedge against bear markets, while attempting not to sacrifice profits on the upside. We think this is an important portfolio management tool and one that we want to offer investors alongside Catalyst’s range of alternative investment strategies.”

Catalyst offers a range of strategies and liquid alternative products in mutual fund form with the goal of producing income and equity-oriented returns while seeking to control risk and volatility. 

The company’s 25 distinctive funds, including three hedge funds that were converted into mutual fund products, encompass a wide spectrum of investment approaches including dynamic equity, hedged strategies, alternative income and global equity. The Huntington, NY-based firm has more than $5.8 billion in assets under management.


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