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Form 497K MUTUAL FUND SERIES TRUST

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Catalyst Income and Multi-Strategy Fund

(formerly Catalyst Multi-Strategy Fund)

Class
A: ACXAX Class C: ACXCX Class I: ACXIX

 

summary PROSPECTUS

NOVEMBER 1, 2021

 

 

Before you invest, you may want to review the Fund’s
complete prospectus, which contains more information about the Fund and its risks. You can find the Fund’s prospectus and other
information about the Fund at https://catalystmf.com/literature-and-forms/. You can also get this information at no cost by calling 1-866-447-4228,
emailing [email protected] or by asking any financial intermediary that offers shares of the Fund. The Fund’s prospectus and statement
of additional information, both dated November 1, 2021 are incorporated by reference into this summary prospectus and may be obtained,
free of charge, at the website or phone number noted above.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FUND SUMMARY: CATALYST INCOME AND MULTI-STRATEGY FUND (formerly
Catalyst Multi-Strategy Fund)

 

Investment Objective: The Fund’s investment
objective is total return consisting of income and capital appreciation.

Fees and Expenses of the Fund: This
table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. You may pay other fees, such
as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and Example below. You may
qualify for sales charge discounts on purchases of Class A shares if you and your family invest, or agree to invest in the future, at
least $50,000 in the Fund. More information about these and other discounts is available from your financial professional and is included
in the section of the Fund’s prospectus entitled How to Buy Shares on page 136 and Appendix A – Intermediary-Specific
Sales Charge Reductions and Waivers, and in the sections of the Fund’s Statement of Additional Information entitled Reduction
of Up-Front Sales Charge on Class A Shares on page 71 and Waiver of Up-Front Sales Charge on Class A Shares on page 72.

Shareholder Fees

(fees paid directly from your investment)

Class A Class C Class I
Maximum Sales Charge (Load) Imposed on Purchases (as a % of offering price) 5.75% None None
Maximum Deferred Sales Charge (Load) (as a % of the original purchase price) 1.00%1 None None
Maximum Sales Charge (Load) Imposed on Reinvested Dividends and other Distributions None None None
Redemption Fee None None None

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of
the value of your investment)

     
Management Fees 1.75% 1.75% 1.75%
Distribution and Service (12b-1) Fees 0.25% 1.00% None
Other Expenses 3.50% 3.39% 3.40%
     Interest/Dividend Expense    0.01%    0.01%    0.01%
     Remaining Other Expenses    3.49%    3.38%    3.39%
Acquired Fund Fees and Expenses2 0.22% 0.22% 0.22%
Total Annual Fund Operating Expenses 5.72% 6.36% 5.37%
Fee Waiver and/or Expense Reimbursement3 (3.25)% (3.14)% (3.15)%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement 2.47% 3.22% 2.22%

1 The 1.00% maximum deferred sales charge
may be assessed in the case of investments at or above the $1 million breakpoint (where you do not pay an initial sales charge) on shares
redeemed within two years of purchase.

2 Acquired Fund Fees and Expenses are the
indirect costs of investing in other investment companies. The total annual fund operating expenses in this fee table will not correlate
to the expense ratio in the Fund’s financial highlights because the financial statements include only the direct operating expenses
incurred by the Fund, not the indirect costs of investing in other investment companies. AFFE includes the advisory fees paid to Catalyst
Capital Advisors, LLC (“Catalyst” or the “Advisor”) or other fees paid to its affiliates by the investment companies
advised by Catalyst in which the Fund invests.

3 The advisor has contractually agreed
to waive fees and/or reimburse expenses of the Fund to the extent necessary to limit total annual fund operating expenses (excluding brokerage
costs; underlying fund expenses; borrowing costs, such as (a), interest and (b) dividends on securities sold short; taxes and, extraordinary
expenses, such as regulatory inquiry and litigation expenses) at 2.24%, 2.99% and 1.99% for Class A shares, Class C shares and Class I
shares, respectively, through October 31, 2022. This agreement may only be terminated by the Trust’s Board of Trustees on 60 days’
written notice to the advisor and upon the termination of the Management Agreement between the Trust and the advisor. Fee waivers and
expense reimbursements are subject to possible recoupment by the advisor from the Fund in future years on a rolling three-year basis (within
the three years after the fees have been waived or reimbursed) so long as such recoupment does not cause the Fund’s expense ratio
(after the repayment is taken into account) to exceed the lesser of: (i) the Fund’s expense limitation at the time such expenses
were waived and (ii) the Fund’s current expense limitation at the time of recoupment.

Example: This Example is intended to
help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated, and then hold or redeem all of your shares at the end of those periods. The Example
only accounts for the Fund’s expense limitation through its expiration period, October 31, 2022, and then depicts the Fund’s
total annual expenses thereafter. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating
expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

 

YEAR

Class A Class C Class I
1 $811 $325 $225
3 $1,908 $1,602 $1,325
5 $2,990 $2,845 $2,417
10 $5,627 $5,806 $5,111

 

Portfolio Turnover: The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover
may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which
are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. The portfolio turnover rate
of the Fund for the fiscal year ended June 30, 2021 was 43% of the average value of its portfolio.

Principal Investment Strategies:

Under normal market conditions, the Fund invests primarily
in income producing securities with a focus on agency and non-agency commercial and residential mortgage-backed securities (“MBS”),
corporate bonds, convertible securities, and mortgage real estate investment trusts (“REITs”). From these investments, the
Fund seeks to deliver monthly dividends. Additionally, the Fund implements an overlay strategy in which the Fund (i) invests in financial
and commodity futures contracts across multiple sectors and time frames and (ii) employs a tactical hedging strategy.

 

Other fixed income producing securities in which the
Fund may invest include asset-backed securities (“ABS”) (including those backed by credit card receivables, auto loans, aircraft
leases and student loans), equity REITs, collateralized loan obligations (“CLOs”), collateralized debt obligations (“CDOs”),
securities issued by the U.S. government, U.S. government agencies, and U.S. government sponsored entities. The Fund invests in fixed
income producing securities primarily through investment in affiliated mutual funds and in exchange traded funds (“ETFs”).

 

The Fund may invest in fixed income securities that
have fixed or floating interest rates. The securities held by the Fund may be of any credit quality (including below investment grade
bonds, i.e., “junk” bonds, rated lower than “Baa3” by Moody’s Investors Service, Inc. or “BBB“
by S&P Global Ratings Services)), effective maturity or average modified duration and may include the securities of issuers located
outside the U.S. (including emerging markets). The Fund may invest securities backed by subprime mortgages. The Fund intends to invest
no more than 15% of its net assets directly in non-investment grade MBS, ABS, CDOs and CLOs.

 

Securities are chosen for and removed from the
Fund’s portfolio based on pre-defined volatility limits. Additionally, in selecting securities for investment, the Advisor supplements
the volatility criteria using a barbell approach whereby investments are made in both high credit quality securities and lower credit
quality securities, including below investment grade securities. High credit quality securities that the Fund invests in primarily consist
of agency mortgage-backed securities, investment grade corporate bonds and exchange traded mortgage REITs. Lower credit quality securities
that the Fund invests in primarily consist of non-agency mortgage-backed securities and convertible bonds.

 

Overlay Strategy

 

Futures Component – The Fund employs a systematic
and tactical overlay strategy to invest in futures contracts of various areas. Examples of these areas include global stock indices, volatility
indices, currencies, interest rates, metals, energy, livestock, soft commodities and grains. The Fund shall transact these futures contracts
on both domestic and developed foreign countries’ futures markets. Positions in these instruments may be made by the Fund directly
or indirectly by investing through its Subsidiary (as described below) that invests in the instruments. For this component, the Fund shall
enter into both long and short positions in futures contracts.

 

Caddo Capital Management, LLC (the “Trading
Advisor”) makes investment decisions for the overlay component of the Fund’s portfolio based on the results of its investment
program (the “Investment Program”). The Investment Program is an absolute return strategy intended to capitalize on rising
as well as declining price movements throughout global financial and commodity markets. The Investment Program uses a multi-system approach
that analyzes long, intermediate and short-term time frames. The Trading Advisor employs a diverse set of non-correlated trading models.
Trade transactions are dictated by these models. In addition, the Investment Program adheres to the following guidelines in its emphasis
on risk management: (i) all positions are sized according to risk across back-tested market scenarios; (ii) groups of positions are intended
to provide diversification across markets, sectors and time-frames; (iii) buy and sell stop-loss orders are adjusted on a daily basis
and designed to limit losses on individual positions; and (iv) margin-to-equity ratio is targeted to be as low as possible for the overall
trading strategy.

 

Hedging Component – The Fund employs a systematic
and tactical hedging strategy that seeks to limit declines in the Fund’s portfolio under adverse market conditions. The hedging
strategy is a risk management strategy that seeks to manage volatility in the Fund’s annual returns and reduce the overall risk
of investing in the Fund. The Trading Advisor utilizes models to determine when to enter a long-only position in futures contracts on
the CBOE Volatility Index (the “VIX Futures“). However, over the long term, the Fund expects losses from the hedging component
during most periods. This is because of the tendency for long VIX futures prices to decline over time, assuming all other things are held
equal. This tendency is often referred to as “negative carry cost.” Nonetheless, a long position in VIX Futures is intended
to provide positive returns in highly volatile markets where the income-producing portion of the Fund’s portfolio is potentially
subject to the greatest market risk. There is no guarantee that the Fund’s hedging strategy will be successful.

 

Investments in Subsidiary – The
Advisor executes a portion of the Fund’s strategy by investing up to 25% of its total assets in a wholly-owned and controlled subsidiary
(the “Subsidiary”). The Subsidiary invests the majority of its assets in commodities and other futures contracts. The Subsidiary
is subject to the same investment restrictions as the Fund, when viewed on a consolidated basis.

Principal Risks of Investing in the Fund:

As with any mutual fund,
there is no guarantee that the Fund will achieve its objective. Investment markets are unpredictable and there will be certain market
conditions where the Fund will not meet its investment objective and will lose money. The Fund’s net asset value and returns will
vary and you could lose money on your investment in the Fund and those losses could be significant.

The following summarizes
the principal risks of investing in the Fund. These risks could adversely affect the net asset value, total return and the value of the
Fund and your investment.

Affiliated Investment Company Risk.
The Fund invests in affiliated underlying funds, unaffiliated underlying funds, or a combination of both. The Advisor, therefore, is subject
to conflicts of interest in allocating the Fund’s assets among the underlying funds. The Advisor will receive more revenue to the
extent it selects an affiliated underlying fund rather than an unaffiliated fund for inclusion in the Fund’s portfolio. In addition,
the Advisor may have an incentive to allocate the Fund’s assets to those affiliated underlying funds for which the net advisory
fees payable to the Advisor are higher than the fees payable by other affiliated underlying funds.

Asset-Backed and Mortgage-Backed Security Risk.
When the Fund invests in asset-backed securities, mortgage-backed securities or CMOs, the Fund is subject to the risk that, if the
issuer fails to pay interest or repay principal, the assets backing these securities may not be sufficient to support payments on the
securities.

 

Mortgage-backed securities represent participating
interests in pools of residential mortgage loans, some of which are guaranteed by the U.S. government, its agencies or instrumentalities.
However, the guarantee of these types of securities relates to the principal and interest payments and not the market value of such securities.
In addition, the guarantee only relates to the mortgage-backed securities held by a Fund and not the purchase of shares of the Fund. Mortgage-backed
securities do not have a fixed maturity and their expected maturities may vary when interest rates rise or fall.

 

Mortgage-backed securities issued or guaranteed by
private issuers are also known as “non-agency MBS.” Non-agency MBS generally are a greater credit risk than MBS issued by
the U.S. government, and the market for non-agency MBS is smaller and may be less liquid that the market for government MBS.

 

CDOs and CLOs Risk. CDOs and CLOs are
securities backed by an underlying portfolio of debt and loan obligations, respectively. CDOs and CLOs issue classes or “tranches”
that vary in risk and yield and may experience substantial losses due to actual defaults, decrease of market

value due to collateral defaults and removal of subordinate
tranches, market anticipation of defaults and investor aversion to CDO and CLO securities as a class.

 

Commodity Risk. Investing in the commodities
markets may subject the Fund to greater volatility than investments in traditional securities. Commodity prices may be influenced by unfavorable
weather, animal and plant disease, geologic and environmental factors as well as changes in government regulation such as tariffs, embargoes
or burdensome production rules and restrictions.

 

Convertible Bond Risk. Convertible bonds are
hybrid securities that have characteristics of both fixed income and equity securities and are subject to risks associated with both fixed
income and equity securities.

 

Credit Risk. Credit risk is the risk that an
issuer of a security will fail to pay principal and interest in a timely manner, reducing the Fund’s total return. The Fund may
invest in high-yield, high-risk securities, commonly called “junk bonds,” that are not investment grade and are generally
considered speculative because they present a greater risk of loss, including default, than higher quality debt securities. Credit risk
may be substantial for the Fund. The price of a fixed income security tends to drop if the rating of the underlying issuer drops and the
probability of the failure to pay principal and interest increases.

 

Derivatives Risk. Even a small investment in
derivatives may give rise to leverage risk (which can increase volatility and magnify the Fund’s potential for loss), and can have
a significant impact on the Fund’s performance. Derivatives are also subject to credit risk (the counterparty may default) and liquidity
risk (the Fund may not be able to sell the security or otherwise exit the contract in a timely manner).

 

Distribution Policy Risk. The Fund may lack
sufficient income to deliver monthly dividend.

 

Emerging Market Risk. Emerging market countries
may have relatively unstable governments, weaker economies, and less-developed legal systems with fewer security holder rights. Emerging
market economies may be based on only a few industries and security issuers may be more susceptible to economic weakness and more likely
to default. Emerging market securities also tend to be less liquid. There may also be less reliable or publicly-available information
about emerging markets due to non-uniform regulatory, auditing or financial recordkeeping standards, which could cause errors in the implementation
of the Fund’s investment strategy. The Fund’s performance may depend on issues other than those that affect U.S. companies
and may be adversely affected by different rights and remedies associated with emerging market investments, or the lack thereof, compared
to those associated with U.S. companies.

 

ETFs Risk. Like an open-end investment company
(mutual fund), the value of an ETF can fluctuate based on the prices of the securities owned by the ETF, and ETFs are also subject to
the following additional risks: (i) the ETF’s market price may be less than its net asset value; (ii) an active market for the ETF
may not develop; and (iii) market trading in the ETF may be halted under certain circumstances.

 

Extension Risk. Refers to the risk that if
interest rates rise, repayments of principal on certain debt securities, including, but not limited to, floating rate loans and mortgage-related
securities, may occur at a slower rate than expected and the expected maturity of those securities could lengthen as a result. Securities
that are subject to extension risk generally have a greater potential for loss when prevailing interest rates rise, which could cause
their values to fall sharply.

 

Fixed-Income
Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest
rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities owned by the Fund. In general, the
market price of fixed income securities with longer maturities will increase or decrease more in response to changes in interest rates
than shorter-term securities. Other risk factors include credit risk (the debtor may default) and prepayment risk (the debtor may pay
its obligation early, reducing the amount of interest payments). These risks could affect the value of a particular investment by the
Fund, possibly causing the Fund’s share price and total return to be reduced and fluctuate more than other types of investments
.

Foreign Currency Risk. Currency trading
risks include market risk, credit risk and country risk. Market risk results from adverse changes in exchange rates in the currencies
the Fund is long or short. Credit risk results because a currency-trade counterparty may default. Country risk arises because a government
may interfere with transactions in its currency.

Foreign Exchanges Risk. A portion of
the derivatives trades made by the Fund may take place on foreign markets. Neither existing CFTC regulations nor regulations of any other
U.S. governmental agency apply to transactions on foreign markets. Some of these foreign markets, in contrast to U.S. exchanges, are so-called
principals’ markets in which performance is the responsibility only of the individual counterparty with whom the trader has entered
into a commodity interest transaction and not of the exchange or clearing corporation. In these kinds of markets, there is risk of bankruptcy
or other failure or refusal to perform by the counterparty.

Foreign Investment Risk. Foreign investing
involves risks not typically associated with U.S. investments, including adverse fluctuations in foreign currency values, adverse political,
social and economic developments, less liquidity, greater volatility, less developed or less efficient trading markets, political instability
and differing auditing and legal standards. Investing in emerging markets imposes risks different from, or greater than, risks of investing
in foreign developed countries.

Futures Contract Risk. The successful
use of futures contracts draws upon the Trading Advisor’s skill and experience with respect to such instruments and are subject
to special risk considerations. The primary risks associated with the use of futures contracts are (a) the imperfect correlation
between the change in market value of the instruments held by the Fund and the price of the forward or futures contract; (b) possible
lack of a liquid secondary market for a forward or futures contract and the resulting inability to close a forward or futures contract
when desired; (c) losses caused by unanticipated market movements, which are potentially unlimited; (d) the Trading Advisor’s inability
to predict correctly the direction of securities prices, interest rates, currency exchange rates and other economic factors; (e) the possibility
that the counterparty will default in the performance of its obligations; and (f) if the Fund has

insufficient cash, it may have to sell securities
from its portfolio to meet daily variation margin requirements, and the Fund may have to sell securities at a time when it may be disadvantageous
to do so.

Hedging Risk. Hedging is a strategy in which
the Fund uses a derivative to offset the risks associated with other Fund holdings. There can be no assurance that the Fund’s hedging
strategy will reduce risk or that hedging transactions will be either available or cost effective.

 

Interest Rate Risk. Changes in short-term market
interest rates will directly affect the yield on the shares of a fund whose investments are normally invested in floating rate debt. If
short-term market interest rates fall, the yield on the Fund’s shares will also fall. Conversely, when short-term market interest
rates rise, because of the lag between changes in such short-term rates and the resetting of the floating rates on the floating rate debt
in the Fund’s portfolio, the impact of rising rates will be delayed to the extent of such lag. While interest rates remain at historic
lows, a heightened risk to the Fund is posed by the greater potential for rising interest rates to the extent the Fund’s portfolio
includes longer-term fixed income securities.

 

Junk Bond Risk. Lower-quality bonds, known
as “high yield” or “junk” bonds, present greater risk than bonds of higher quality, including an increased risk
of default. An economic downturn or period of rising interest rates could adversely affect the market for these bonds and reduce the Fund’s
ability to sell its bonds. The lack of a liquid market for these bonds could decrease the Fund’s share price.

 

Leverage Risk. Using derivatives to
increase the Fund’s combined long and short exposure creates leverage, which can magnify the Fund’s potential for gain or
loss and, therefore, amplify the effects of market volatility on the Fund’s share price.

LIBOR Risk. Changes in the level of
LIBOR will affect the amount of interest payable on the LIBOR-based floating rate debt instruments, and it is impossible to predict whether
LIBOR will rise or fall. A decline in the level of LIBOR would likely result in a reduction of interest collections on such debt instruments,
which would have an adverse effect on the return of the Fund. Some floating rate debt instruments held by the Fund may have LIBOR floors
(or minimum interest rate to which the spread or margin is added, to calculate the debt instrument’s overall interest rate), but
there is no guarantee that any such LIBOR floor will fully mitigate the risk of falling LIBOR.

The UK Financial Conduct Authority (the “FCA”)
and LIBOR’s administrator, ICE Benchmark Administration (the “IBA”), have announced that most LIBOR settings will no
longer be published after the end of 2021 and a majority of U.S. dollar LIBOR settings will no longer be published after June 30, 2023.
Not all LIBOR-based instruments have an alternative to LIBOR and there is significant uncertainty regarding the effectiveness of alternative
methodologies and the potential for market instability. These matters may result in a sudden or prolonged increase or decrease in reported
benchmark rates, benchmark rates being more volatile than they have been in the past, and/or fewer debt instruments utilizing given benchmark
rates as a component of interest payments. Additionally, in connection with the adoption of another benchmark as a replacement for LIBOR
in a debt instrument’s documentation, the interest rate (or method for calculating the interest rate) applicable to that debt instrument
may be modified to account for differences between LIBOR and the applicable replacement benchmark used to calculate the rate

of interest payable in respect of that instrument,
which modification may be based on industry-accepted spread adjustments or recommendations from various governmental and non-governmental
bodies. Because of the uncertainty regarding the nature of any replacement rate, the Fund cannot reasonably estimate the impact of the
anticipated transition away from LIBOR at this time. If the LIBOR replacement rate is lower than market expectations, there could be an
adverse impact on the value of debt instruments with floating or fixed-to-floating rate coupons and, in turn, a material adverse impact
on the value of the Funds.

The transition away from LIBOR may affect the
cost of capital, may require amending or restructuring debt instruments and related hedging arrangements for the Fund and its portfolio
companies, and may impact the liquidity and/or value of floating rate instruments based on LIBOR that are held or may be held by the Fund
in the future, which may result in additional costs or adversely affect the Fund’s liquidity, results of operations, and financial
condition. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, could result in losses for the Funds.
Since the usefulness of LIBOR as a benchmark could also deteriorate during the transition period, effects could occur at any time.

Liquidity Risk. Liquidity risk exists
when particular investments of the Fund would be difficult to purchase or sell, possibly preventing the Fund from selling such illiquid
securities at an advantageous time or price, or possibly requiring the Fund to dispose of other investments at unfavorable times or prices
in order to satisfy its obligations.

Managed Volatility Risk. Techniques
used by the Sub-Advisor to manage the volatility of the Fund’s investments carry the risks that such techniques may not protect
against market declines. The techniques may also limit the Fund’s participation in market gains, particularly during periods where
market values are increasing but market volatility is high. Further, such techniques may increase portfolio transaction costs, which could
result in losses or reduced gains. They also may not be successful as the techniques are subject to the Sub-Advisor’s ability to
correctly analyze and implement the volatility management techniques in a timely manner.

Management Risk. The portfolio managers’
judgments about the attractiveness, value and potential appreciation of particular asset classes and securities in which the Fund invests
may prove to be incorrect and may not produce the desired results.

Market Risk. Overall securities and
derivatives market risks may affect the value of individual instruments in which the Fund invests. Factors such as domestic and foreign
economic growth and market conditions, interest rate levels, and political events affect the securities and derivatives markets. When
the value of the Fund’s investments goes down, your investment in the Fund decreases in value and you could lose money.

Model and Data Risk. Like all quantitative
analysis, the investment models utilized by the Trading Advisor carry the risk that the ranking system, valuation results and predictions
might be based on one or more incorrect assumptions, insufficient historical data, inadequate design, or may not be suitable for the purpose
intended. In addition, models may not perform as intended for many reasons including errors, omissions, imperfections or malfunctions.
Because the use of models are usually based on data supplied by third parties, the success of the Trading Advisor’s use of such
models is dependent on the accuracy and reliability of the supplied data. Historical data inputs may be subject to revision or corrections,
which may diminish data reliability and

quality of predictive results. Changing and unforeseen
market dynamics could also lead to a decrease in the short-term or long-term effectiveness of a model. Models may lose their predictive
validity and incorrectly forecast future market behavior and asset prices, leading to potential losses. No assurance can be given that
a model will be successful under all or any market conditions.

 

Mortgage REITs Risk. Mortgage REITs lend money
to developers and owners of properties and invest primarily in mortgages and similar real estate interests. Mortgage REITs receive interest
payments from the owners of the mortgaged properties. Accordingly, mortgage REITs are subject to the credit risk of the borrowers to whom
they extend funds, which is the risk that the borrower will not be able to make timely interest and principal payments on the loan to
the mortgage REIT. Mortgage REITs also are subject to the risk that the value of mortgaged properties may be less than the amounts owed
on the properties. If a mortgage REIT is required to foreclose on a borrower, the amount recovered in connection with the foreclosure
may be less than the amount owed to the mortgage REIT. Mortgage REITs are subject to significant interest rate risk. During periods when
interest rates are declining, mortgages are often refinanced or prepaid. Refinancing or prepayment of mortgages may reduce the yield of
mortgage REITs. When interest rates decline, the value of a mortgage REIT’s investment in fixed rate obligations can be expected
to rise. Conversely, when interest rates rise, the value of a mortgage REIT’s investment in fixed rate obligations can be expected
to decline.

 

Prepayment Risk. During periods of declining
interest rates, prepayment of loans underlying fixed-income securities, including mortgage-backed and asset-backed securities usually
accelerates. Prepayment may shorten the effective maturities of these securities, reducing their yield and market value, and the Fund
may have to reinvest at a lower interest rate.

 

Real Estate and REIT Risk. The Fund
is subject to the risks of the real estate market as a whole, such as taxation, regulations and economic and political factors that negatively
impact the real estate market and the direct ownership of real estate. These may include decreases in real estate values, overbuilding,
rising operating costs, interest rates and property taxes. In addition, some real estate related investments are not fully diversified
and are subject to the risks associated with financing a limited number of projects. REITs are heavily dependent upon the management team
and are subject to heavy cash flow dependency, defaults by borrowers and self-liquidation. Subprime mortgages are riskier and potentially
less liquid than other mortgage-backed securities.

Regulatory Risk. Changes in the laws
or regulations of the United States or other countries, including any changes to applicable tax laws and regulations, could impair the
ability of the Fund to achieve its investment objective and could increase the operating expenses of the Fund.

Sector Concentration Risk. Sector concentration
risk is the possibility that securities within the same sector will decline in price due to sector-specific market or economic developments.
If the Fund invests more heavily in a particular sector, the value of its shares may be especially sensitive to factors and economic risks
that specifically affect that sector. As a result, the Fund’s share price may fluctuate more widely than the value of shares of a mutual
fund that invests in a broader range of sectors. Additionally, some sectors could be subject to greater government regulation than other
sectors. Therefore, changes in regulatory policies for those sectors may have a material effect on the value of securities issued by companies
in those sectors.

 

Short Position Risk. The Fund will incur
a loss as a result of a short position if the price of the short position instrument increases in value between the date of the short
position sale and the date on which the Fund purchases an offsetting position. Short positions may be considered speculative transactions
and involve special risks, including greater reliance on the ability to accurately anticipate the future value of a security or instrument.
The Fund’s losses are potentially unlimited in a short position transaction.

Short Selling Risk. 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 have substantial short positions and must borrow those securities to make delivery to the buyer. The Fund may not be able
to borrow a security that it needs to deliver or it may not be able to close out a short position at an acceptable price and may have
to sell related long positions before it had intended to do so. Thus, the Fund may not be able to successfully implement its short sale
strategy due to limited availability of desired securities or for other reasons.

Sub-Prime Mortgage Risk. Lower-quality
notes, such as those considered “sub-prime,” are more likely to default than those considered “prime” by a rating
evaluation agency or service provider. An economic downturn or period of rising interest rates could adversely affect the market for sub-prime
notes and reduce the Fund’s ability to sell these securities. The lack of a liquid market for these securities could decrease the Fund’s
share price. Additionally, borrowers may seek bankruptcy protection which would delay resolution of security holder claims and may eliminate
or materially reduce liquidity.

Tax Risk. By investing in commodities
indirectly through the Subsidiary, the Fund will obtain exposure to the commodities markets within the federal tax requirements that apply
to the Fund. However, because the Subsidiary is a controlled foreign corporation, any income received from its investments will be passed
through to the Fund as ordinary income, which may be taxed at less favorable rates than capital gains.

Turnover Risk. The Fund may have portfolio
turnover rates significantly in excess of 100%. Increased portfolio turnover causes the Fund to incur higher brokerage costs, which may
adversely affect the Fund’s performance and may produce increased taxable distributions.

Underlying Fund Risk. Because the Fund may
invest in other investment companies, the value of your investment will fluctuate in response to the performance of the underlying funds.
Investing in underlying funds involves certain additional expenses and certain tax results that would not arise if you invested directly
in the underlying funds. By investing in underlying funds, you will bear not only your proportionate share of the Fund’s expenses
(including operating costs and investment advisory and administrative fees), but also, indirectly, similar expenses and charges of the
underlying funds, including any contingent deferred sales charges and redemption charges. Finally, you may incur increased tax liabilities
by investing in the Fund rather than directly in the underlying funds. Each underlying fund is subject to specific risks, depending on
the nature of its investment strategy, including liquidity risk and default risk on the assets held by the underlying fund.

 

U.S. Government Obligations Risk. Securities
issued or guaranteed by federal agencies or authorities and U.S. government-sponsored instrumentalities or enterprises may or may not
be

backed by the full faith and credit of the
U.S. government. The Fund may be subject to such risk to the extent it invests in securities issued or guaranteed by federal agencies
or authorities and U.S. government sponsored instrumentalities or enterprises.

Wholly-Owned Subsidiary Risk. By investing
in the Subsidiary, the Fund is indirectly exposed to the commodities risks associated with the Subsidiary’s investments in commodity-related
instruments. Shareholders of the Fund are indirectly be subject to the principal risks of the Subsidiary by virtue of the Fund’s
investment in the Subsidiary. There can be no assurance that the Subsidiary’s investments will contribute to the Fund’s returns.
The Subsidiary is not registered under the Investment Company Act of 1940, as amended, Act and is not subject to all the investor protections
of the act1940 Act. Changes in the laws of the United States and/or the Cayman Islands could result in the inability of the Fund and/or
the Subsidiary to operate as described in this Prospectus and could adversely affect the Fund, such as by reducing the Fund’s investment
returns. The Fund and the Subsidiary are “commodity pools” under the U.S. Commodity Exchange Act, and the Advisor is a “commodity
pool operator” registered with and regulated by the Commodity Futures Trading Commission (“CFTC”). As a result, additional
CFTC-mandated disclosure, reporting and recordkeeping obligations apply with respect to the Fund and the Subsidiary and subject each to
CFTC penalties if reporting was found to be deficient.

Performance:

The bar chart and accompanying
table shown provide an indication of the risks of investing in the Fund. The bar chart shows the total return of the Fund’s Class
I shares for each of the last ten full calendar years. Although Class A and C shares would have similar annual returns to Class I shares
because the classes are invested in the same portfolio of securities, the returns for Class A and C shares would be lower than Class I
shares because Class A and C shares have higher expenses than Class I shares. The performance table compares the performance of the Fund’s
Class I, Class A and Class C shares over time to the performance of a broad-based market index. Sales charges are reflected in the information
shown below in the table, but the information shown in the bar chart does not reflect sales charges, and, if it did, returns would be
lower.

The Fund acquired all of
the assets and liabilities of Auctos Global Diversified Fund, LLC (the “Predecessor Fund”) in a tax-free reorganization on
or about August 14, 2015 (the “Reorganization”). In connection with the Reorganization, shares of the Predecessor Fund were
exchanged for Class I shares of the Fund. The Predecessor Fund had an investment objective and strategies that were, in all material respects,
the same as those of the Fund, and was managed in a manner that, in all material respects, complied with the investment guidelines and
restrictions of the Fund. The performance information set forth below for periods prior to August 14, 2015 reflects the historical performance
of the Predecessor Fund.

How the Fund has performed
in the past (before and after taxes) is not necessarily an indication of how it will perform in the future.

Updated performance information
and daily NAV is available at no cost by calling 1-866-447-4228 and on the Fund’s website at www.CatalystMF.com.

Figures do not reflect sales charges. If they
did, returns would be lower.

During the period shown in the bar chart, the
highest return for a quarter was 7.32% (quarter ended December 31, 2020), and the lowest return for a quarter was (6.98)% (quarter ended
March 31, 2020). The Fund’s Class I year-to-date return as of September 30, 2021 was 3.32%.

Average Annual Total Returns

(for the periods ended, December
31, 2020)

 

 

Class I

 

 

1 Year

5 Year

 

 

10 year*

  Return Before Taxes 4.85% 1.13% 1.15%
  Return After Taxes on Distributions** 4.07% 0.59% 0.88%
  Return After Taxes on Distributions and Sale of Fund Shares** 2.87% 0.63% 0.77%
Class A      
Return Before Taxes (1.38)% (0.31)% (1.10)%***
Class C      
Return Before Taxes 3.79% 0.13% (0.79)%***
BofA Merrill Lynch 3-Month Treasury Bill Index (reflects no deduction for fees, expenses or taxes) 0.67% 1.20% 0.64%***

* Includes the effect of performance fees paid by
the investors of the predecessor fund and the effect of the Fund’s maximum sales load.

** After Tax Returns for Class I shares are for the
period beginning August 15, 2015. As a result of the different tax treatment of the Predecessor Fund, we are unable to show the after-tax
returns for the Predecessor Fund. The Predecessor Fund did not have a distribution policy. It was an unregistered limited liability company,
did not qualify as a regulated investment company for federal income tax purposes and it did not pay dividends and distributions. After
tax returns shown are a blend of after-tax returns from August 15, 2015 and return before taxes for preceding periods.

*** Class A and Class C shares commenced operations
on August 13, 2015. The BofA Merrill Lynch 3-Month Treasury Bill Index’s return since inception as of that date is 1.12%.

 

After-tax returns are calculated using the
highest historical individual federal marginal income tax rate and do not reflect the impact of state and local taxes. Actual after-tax
returns depend on a shareholder’s tax situation and may differ from those shown. After-tax returns are not relevant for shareholders
who hold Fund shares in tax-deferred accounts or to shares held by non-taxable

entities. After-tax returns are only shown for
Class I shares. After-tax returns for other share classes will vary.

Advisor: Catalyst Capital Advisors LLC
is the Fund’s investment advisor.

Trading Advisor: Caddo Capital Management,
LLC is the Fund’s trading advisor.

Portfolio Managers: Darren J. Kottle,
Chief Investment Officer of the Trading Advisor, is responsible for the day-to-day management of the futures component of the Fund’s
portfolio. Charles Ashley, Portfolio Manager of the Advisor, is primarily responsible for the day-to-day management of the fixed income
portion of the Fund’s portfolio. Messrs. Kottle and Ashley have served the Fund as Portfolio Managers since January 2018 and April
2018, respectively.

Purchase and Sale of Fund Shares: The minimum
initial investment in all share classes of the Fund is $2,500 for regular and IRA accounts, and $100 for an automatic investment plan
account. The minimum subsequent investment in all share classes of the Fund is $50. You may purchase and redeem shares of the Fund on
any day that the New York Stock Exchange is open. Redemption requests may be made in writing, by telephone or through a financial intermediary
to the Fund or the Transfer Agent and will be paid by check or wire transfer.

 

Tax Information: Dividends and capital
gain distributions you receive from the Fund, whether you reinvest your distributions in additional Fund shares or receive them in cash,
are taxable to you at either ordinary income or capital gains tax rates unless you are investing through a tax-deferred plan such as an
IRA or 401(k) plan. If you are investing in a tax-deferred plan, distributions may be taxable upon withdrawal from the plan.

Payments to Broker-Dealers and Other Financial
Intermediaries: If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest
by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson
or visit your financial intermediary’s website for more information.

 

 

 

 

 

 

 

 

 

 

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