Catalyst Funds, an alternative-focused mutual fund company, has partnered with BNP Paribas to create the BNP Paribas Catalyst Systematic Alpha Index (the BNPP CASA Index).
Additionally, Catalyst has launched the Catalyst Systematic Alpha Fund (ATRAX), which provides exposure to the newly-created index.
The BNPP CASA Index 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 a rules-based, risk-budget model, the BNPP CASA Index systematically allocates across each of these strategies, as frequently as daily, and is designed to adapt to various market conditions. Although the BNPP CASA Index synthetically invests across equities, fixed-income, commodities and currencies, it is designed to offer a low correlation to these markets.
The ATRAX fund invests in securities that provide exposure to the BNPP CASA Index, mainly non-exchange-traded total return swap contracts. The Fund also employs active management of a fixed income portfolio. The Fund’s strategy, like the BNPP CASA Index, 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.
“We are excited to partner with the BNP Paribas QIS team, which has been a leader and a pioneer in developing rules-based systematic investment strategies,” says Jerry Szilagyi (pictured), CEO of Catalyst Funds.
“The newly-created BNPP CASA Index leverages recognised risk premia strategies and offers investors a diversified, low-correlated source of returns. The Catalyst Systematic Alpha Fund is based on this index, and for the first time, gives all investors access to a sophisticated, diversified strategy once available only to accredited investors.”