Fund Evaluator:
Catalyst/SMH High Income I (HIIIX)
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Best Performing in High Yield Bond Over the Last Year
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| 7.4% | American Beacon SiM High Yld Opps Inv (SHYPX) |
| 7.4% | Fidelity Advisor High Income Z (FGUMX) |
| 7.2% | Fidelity High Income (SPHIX) |
Fund Details
Catalyst/SMH High Income I Overview
Catalyst/SMH High Income I (HIIIX) is an actively managed Taxable Bond High Yield Bond fund. Catalyst Mutual Funds launched the fund in 2013.
The investment seeks income with capital appreciation as a secondary objective. The fund invests in a non-diversified group of low-quality, high yield corporate bonds and convertible securities. It may invest without limitation in non-investment grade corporate bonds rated Baa or lower by Moody's or BBB or lower by S&P (also known as "junk" bonds). The fund may also invest in corporate issues that have defaulted. While there are no restrictions on maturity, the bonds in the fund's portfolio generally have an average maturity of less than ten years. It is non-diversified.
About Catalyst/SMH High Income I (HIIIX)
There are 3 members of the management team with an average tenure of 7.24 years: Dwayne Moyers (2008), Lisa Haley (2023), Brandon Allred (2025). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA US Cash Pay HY TR USD index with a weighting of 100%. Catalyst/SMH High Income I has 49 securities in its portfolio. The top 10 holdings constitute 44.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Catalyst/SMH High Income I is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Catalyst/SMH High Income I has 4.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 4.2% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 82.4% (78.4% domestic bond, 4.0% foreign bond and 6.1% convertible bond). Catalyst/SMH High Income I has 7.4% of the portfolio in cash.
Assets Under Management
The fund has $154 million in total assets, which is below the $545 million average for the High Yield Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
HIIIX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Catalyst/SMH High Income I expense ratio is high compared to funds in the High Yield Bond category. Catalyst/SMH High Income I has an expense ratio of 1.24%, which is 35% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Catalyst/SMH High Income I has a portfolio turnover rate of 54%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 72% for the High Yield Bond category.
Recently, in the month of July 2026, Catalyst/SMH High Income I returned -0.6%, which earned it a grade of F, as the High Yield Bond category had an average return of -0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Catalyst/SMH High Income I has a trailing yield of 6.17%, which is below the 6.28% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Catalyst/SMH High Income I Grades
Year to date, the fund has returned 3.1%, 1.4 percentage points better than the category, which translates into a grade of A. The fund has returned 12.2% over the past year (grade of A), 11.8% over the past three years (grade of A) and 5.8% per year over the past five years (grade of A) and 7.4% per year over the past 10 years (grade of A).
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HIIIX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| HIIIX Return (NAV) | -0.6% | 0.9% | 12.2% | 11.8% | 5.8% | 7.4% |
| HIIIX Grade | F | A | A | A | A | A |
| +/- Category | -0.3% | 0.5% | 7.3% | 4.3% | 2.1% | 2.6% |
| High Yield Bond Avg | -0.3% | 0.4% | 4.9% | 7.5% | 3.7% | 4.8% |
| HIIIX Tax Cost Ratio | na | na | 2.5% | 2.7% | 2.6% | 2.4% |
HIIIX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HIIIX Return (NAV) | 3.1% | 16.0% | 9.3% | 16.7% | -13.3% | 8.0% | 10.5% | 8.3% | -1.2% | 10.1% | 38.9% |
| HIIIX Grade | A | A | A | A | F | A | A | F | A | A | A |
| +/- Category | 1.4% | 8.1% | 1.7% | 4.8% | -3.2% | 2.9% | 5.3% | -4.7% | 1.5% | 3.4% | 25.4% |
| High Yield Bond Avg | 1.6% | 7.9% | 7.6% | 11.9% | -10.0% | 5.1% | 5.2% | 13.0% | -2.7% | 6.7% | 13.4% |
| Risk Measures | |
| Standard Deviation: | 7.3% |
| Total Risk Index: | 0.59 - Below Average |
| Category Risk Index: | 1.80 - High |
| Category Risk Grade: | F (101% Rank) |
| Beta: | 0.72 |
| R-Squared: | 31% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 6.2% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $187 Mil |
| Fund Total Assets: | $ 154 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 54% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 18.2 years | |||
| Average Tenure: 7.2 years | |||
| Managers (Year): Moyers Dwayne (2008), Haley Lisa (2023), Allred Brandon (2025) | |||
Portfolio Composition (as of 3/31/26)
| # of Holdings: | 49 |
| % in Top 10 Holdings: | 44.8% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 4.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 4.2% |
| Domestic Bond: | 78.4% |
| Foreign Bond: | 4.0% |
| Convertible Bond: | 6.1% |
| Other: | 0.0% |
| Cash: | 7.4% |
Purchase Information
| Fund Family: | Catalyst Mutual Funds |
| Phone Number: | 866-447-4228 |
| Website: | www.CatalystMutualFunds.com |
| Status: | Open |
| Inception Date: | July 1, 2013 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $2,500 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 1.24% ( Rating : High ) |
| Category Average Expense Ratio (%): | 0.92% |
| Share Class: | Catalyst/SMH High Income A |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 50 |
