Catalyst Partners With BNP Paribas On New Risk Premia Index, Launches Corresponding Fund

Jan 11 2018 | 12:30am ET

Liquid alternative mutual fund specialist Catalyst Funds has partnered with BNP Paribas to create a new risk premia strategy and debuted a new liquid alternative fund that provides exposure to it.

The new index is named the BNP Paribas Catalyst Systematic Alpha Index and allocates between seven different strategies developed by BNP Paribas’ Quantitative Investment Strategies (QIS) group. Each specifically designed to harvest non-traditional sources of returns using rules-based, risk-budget models and systematically allocating across each of these strategies.

Providing exposure to the index is the Catalyst Systematic Alpha Fund, which trades under the symbol ATRAX, the company said in a statement. It invests mainly in non-exchange-traded total return swap contracts and also employs active management of a fixed income portfolio. Like the index, ATRAX seeks to achieve long-term capital appreciation with low correlation via exposure to systematic positions that generate uncorrelated alpha through a multi-risk premia strategy.

Founded in 2006, Catalyst Funds currently offers 25 distinctive funds that provide various strategies with the goal of producing income- and equity-oriented returns while seeking to control risk and volatility. The company offers a wide spectrum of investment approaches, including dynamic equity, hedged strategies, alternative income and global equity. 

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