Catalyst Closes One Fund to Make Room for Another

Catalyst Closes One Fund to Make Room for AnotherDespite the company’s broad push into liquid alts, Catalyst Funds has culled its lineup, eliminating an event-driven fund, while preparing to add a new managed futures fund to its list of products. The firm, which recently announced a doubling of its total assets under management to $2 billion, has a total of around two-dozen distinct mutual funds spanning hedged, strategic income, dynamic equity, focused equity, and global equity categories.

Fund Closure

According to a May 11 filing with the Securities and Exchange Commission (SEC), the Board of Trustees of the Mutual Fund Series Trust decided to cease operations of the Catalyst Event Arbitrage Fund (CEAIX). Shareholders were able to either exchange their shares for those in similar Catalyst funds, such as the Catalyst Macro Strategy Fund (MCXAX) or Catalyst Hedged Futures Strategy Fund (HFXAX), or receive a cash payment.

The Catalyst Event Arbitrage Fund closed at a share price of $8.07 on its final day, June 19, according to data retrieved from Bloomberg. After debuting at $9.93 on March 22, 2013, it reached a high of $10.23 on August 2 of that year, before beginning a precipitous slide throughout 2014 and into 2015.

CEAIX Share Price Performance

New Fund

Replacing the Catalyst Event Arbitrage Fund in Catalyst’s lineup will be the Catalyst/Auctos Managed Futures Multi-Strategy Fund, which DailyAlts included in its May 22 edition of Fund Watch. The fund will trade futures in domestic and developed foreign markets, with contracts spread across multiple sectors and time frames, according to a recent SEC filing. The fund will acquire all of its assets in a tax-free reorganization of the Auctos Global Diversified Fund, and it will be managed by Kevin Jamali, Managing Director at Auctos.

Shares of the new fund will be available in A, C, and I classes, and it is expected to begin trading sometime in July.

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