Catalyst Dynamic Alpha Fund Class A · NASDAQ:CPEAX
Catalyst Dynamic Alpha Fund Class A — Catalyst Enhanced Income Strategy Fund — Investor Presentation (July 2025)
17 slides from Catalyst Dynamic Alpha Fund Class A's investor presentation, Jul 25, 2025
Slide 1: Catalyst Enhanced Income Strategy
CATALYST ENHANCED INCOME STRATEGY CLASS A: EIXAX | CLASS C: EIXCX | CLASS I: EIXIX 20250725-4685672
Slide 2: Catalyst Enhanced Income Strategy Fund: Overview
Catalyst Enhanced Income Strategy Fund: Overview » The Catalyst Enhanced Income Strategy Fund (EIX), invests in Senior Legacy Residential Mortgage Backed Securities (RMBS) and other Structured Credit Securities » EIX has provided investors with a competitive and less volatile earned current income »
Slide 3: Catalyst Enhanced Income Strategy Fund: Performance
Catalyst Enhanced Income Strategy Fund: Performance Performance (%): Ending June 30, 2025 Share Class/Benchmark QTD YTD 1 Year 3 Year 5 Year Since Inception* Class I | EIXIX -1.72 0.23 1.66 -1.59 0.15 2.82 Class A | EIXAX -1.78 0.10 1.41 -1.84 -0.10 2.57 Class C | EIXCX -1.85 -0.27 0.66 -2.58 -0.84
Slide 4: Senior Legacy RMBS Has Outperformed Other Fixed Income Asset Classes
Senior Legacy RMBS Has Outperformed Other Fixed Income Asset Classes 16.0% 13.9% » Has significantly outperformed other 14.0% 12.0% 10.3% fixed income asset classes since 2012 9.9% 10.0% 8.4% 7.8% 7.6% 8.0% 6.5% 6.0% 6.1% 6.0% 6.0% » Its performance is partly based 4.0% 2.3% 2.5% 2.5% 1.5% 1.9% 2.6%
Slide 5: The Reasons For Legacy Senior RMBS Outperforming Other Fixed Income Asset Classes
The Reasons For Legacy Senior RMBS Outperforming Other Fixed Income Asset Classes Legacy or seasoned Senior Residential Mortgage-Backed Securities (RMBS) were issued prior to 2007. Fundamentals » Backed by residential mortgages, an asset many investors understand » Strong, resilient U.S. housing mar
Slide 6: Legacy RMBS are Backed by Mortgage Pools with Homeowner Equity
Legacy RMBS are Backed by Mortgage Pools with Homeowner Equity Mortgage Issuance Year Years Paid Interest Rate Estimated Key Assumptions (December 31) Loan-to-Value (%) 1. 30-year fixed rate 42%-71% 2004 20 5.36% 22% mortgage (for calculation 2005 19 5.70% 27% simplicity only; many bonds 2006 18 5.7
Slide 7: EIX Invests at or Near the Top of the Capital Structure
EIX Invests at or Near the Top of the Capital Structure Trust/Special Loan Amortization, Credit Loss Current Prices / How Does Credit Enhancement Purpose Tranches Vehicle Previous Prices Work? » EIX occasionally invests in some bonds that have as much as 40% credit enhancement Paid Off (CE). » A bon
Slide 8: EIX - The 4 Drivers of Performance
EIX - The 4 Drivers of Performance EIX invests primarily in Legacy Senior RMBS and Other Structured Credit Securities. The 4 drivers of performance since inception have been: » Investments that generate high, steady earned net current income » Active management helps generate less volatile total ret
Slide 9: Driver 1: EIX Has Provided a Competitive Earned Current Income/Yield
Driver 1: EIX Has Provided a Competitive Earned Current Income/Yield - The Core and Foundation of the Fund Record Trailing 12-Month SEC Yield Unsubsidized SEC High, steady earned net 12-month current yield/ Date Yield Yield income: 6/26/2025 10.26% 7.89% 7.93% » High 10.26% 12-month current yield w
Slide 10: Driver 2: EIX Fund Managers Have a Pulse On The Market
Driver 2: EIX Fund Managers Have a “Pulse On The Market” The Fund’s managers actively engage market participants by trading and making markets, a rare practice in our sleepy, buy-and-hold market due to a DNA that began as a levered funding arbitrage before 2008 Active management in normal times … »
Slide 11: With a Pulse On The Market
With a “Pulse On The Market” Active management includes active market making. For example, on 3/1/2021 Bond Ticker Bid Px Offer Px Bid Size Offer Size Notes to Market Participants CWALT 2006-45T1 2A5 74.75 75.75 5.0mm 3.0mm Sold some, tighter market CWHL 2007-1 A2 78.50 80.00 10.0mm 10.0mm RAST 2006
Slide 12: Driver 3: EIX Has Historically Performed Well in Rising Rate Environments
Driver 3: EIX has historically performed well in Rising Rate Environments - The Fund Hedges Rates with Interest-Only Securities Agency Mortgage IOs Explained -5.22% -15.38% EIXIX Agg Bond Index » Issued by government agencies, Fannie Mae, Freddie Mac, Ginnie Mae -14.71% -8.42% » The risk is associat
Slide 13: EIX Has Historically Hedged Rising Rates with Agency IOs: How it Works
EIX Has Historically Hedged Rising Rates with Agency IOs: How it Works -5.22% -15.38% EIXIX Agg Bond Index -14.71% -8.42% Agency MBS Index Municipal Bond Index -1.02% Corp HY Index Return between 12/31/2020 and 09/30/2023 when the yield on the 10 Year Treasury increased by 210 bps or 230%. » Agency
Slide 14: Driver 4: EIX is Short Duration
Driver 4: EIX is Short Duration - Short Duration Tends to Mitigate Interest Rate Risk, Credit Risk, Liquidity Risk, And Volatility » Investments in the Fund are “cash flow Portfolio Date Beginning Monthly Cash Monthly Cash Flow Months to Pay Off AUM* Flow* (% of AUM) AUM in Cash Flow heavy,” resulti
Slide 15: Experts in Nontraditional Income
Experts in Nontraditional Income Significant prior experience: Significant prior experience: • More than five years at • Held roles at Stifel, Nicolaus & Candlewood Investment Group, Co and Odeon Capital Group LP as the RMBS Sector Manager LLC, analyzing and trading overseeing $1+ Billion in Structu
Slide 16: Important Risk Information
Past performance is not a guarantee of future results. This information is for use with concurrent or prior delivery of a fund prospectus. Investors should consider the investment objective, risks, and charges and expenses of the Fund(s) before investing. The prospectus and, the summary prospectus,
Slide 17: Catalyst Enhanced Income Strategy Fund Presentation
CATALYST ENHANCED INCOME STRATEGY FUND PRESENTATION CLASS A: EIXAX | CLASS C: EIXCX | CLASS I: EIXIX Catalyst Funds © 2025. All Rights Reserved. 20250725-4685672
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