Certified Annual Shareholder Report for Management Investment Companies (n-csr)

Data source: 2013 Q2 Fact Sheet

The Fund’s maximum sales charge for Class “A” shares is 5.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the Fund’s prospectus please call the Fund, toll free at 1-866-447-4228. You can also obtain a prospectus at www.CatalystMF.com .

Portfolio Holdings

In order to take advantage of the best opportunities in the small/micro-cap arena, we hold a concentrated, conviction-based portfolio with roughly 50% of assets invested in our top ten best ideas. I am very confident holding a focused portfolio of deep value companies where management finds the values in the businesses they manage so compelling that they are motivated to step up and buy significant stock on the open market.

As of June 30 ^th , 2013, the Fund’s top five holdings were as follows (unaudited):

Fund’s Top 5 Holdings	% of Portfolio
Global Ship Lease, Inc. Class A	8.8%
Visteon Corp. Warrants	7.7%
Orthofix International NV	3.5%
Tronox Ltd. Class B Warrants	3.4%
Kronos Worldwide, Inc.	3.1%

Percentages in the above table are based on market value (excluding collateral) of the Fund’s portfolio as of June 30, 2013 and are subject to change and should not be considered investment advice.

As of June 30 ^th , 2013, the Fund’s equity holdings were divided among economic sectors as follows (unaudited):

 

Industry 5 (Common Stock)
Aerospace & Defense	2.18%	Insurance	1.74%
Biotechnology	2.25%	Internet Software & Services	4.62%
Capital Markets	4.25%	IT Services	2.31%
Chemicals	3.15%	Machinery	1.07%
Commercial Banks	1.00%	Marine	8.84%
Commercial Services & Supplies	1.32%	Media	3.83%
Construction & Engineering	0.76%	Metals & Mining	2.24%
Consumer Finance	1.20%	Oil Gas & Consumable Fuels	7.80%
Diversified Financial Services	0.05%	Real Estate Investment Trusts (REITs)	6.28%
Electrical Equipment	2.92%	Semiconductors & Semiconductor Equipment	3.62%
Energy Equipment & Services	2.92%	Software	0.85%
Health Care Equipment & Supplies	8.42%	Specialty Retail	1.50%
Health Care Technology	1.10%	Thrifts & Mortgage Finance	3.31%
Hotels Restaurants & Leisure	0.14%	Trading Companies & Distributors	3.01%
		Total Common Stock:	82.68%
Industry 5 (Warrants)		Cash
Auto Components	7.74%	Money Market Fund	3.81%
Chemicals	5.77%
Total Warrants:	13.51%	Total Portfolio:	100%

Percentages in the above table are based on market value (excluding collateral) of the Fund’s portfolio as of June 30 ^th , 2013 and are subject to change.

Summary

We hold what we believe to be a very attractive portfolio of stocks that generate above average returns on invested capital with insider buying while also trading at a discount to intrinsic value. When the market behaves irrationally, as it did throughout 2012 due to many major macroeconomic events, the strategy may underperform. It is easy to get distracted but more important than ever to remember that this strategy is designed to outperform over the long run. In fact, this is what we observed in 2013 – a turn-around for the strategy. The Catalyst Value Fund has significantly outperformed both the S&P 500 Index and Russell 2000 Value Index year-to-date and over the long-term (since inception).  We strongly believe that we are well positioned to significantly outperform the market as the stock performance of our holdings continues to correlate with their intrinsic value. Successful investing requires a long-term outlook focused on objective criteria that create value. We have adopted an outlook for the Catalyst Value Fund, and we are glad that you have decided to share in our vision.

Sincerely,

David Miller

Senior Portfolio Manager

This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current Fund prospectus. To obtain a prospectus or other information about the Fund, please visit www.CatalystMF.com or call 1-866-447-4228. Please read the prospectus carefully before investing.

⁽¹⁾ Data from FactSet. CTVAX, Russell 2000 and S&P 500 data calculated through end of day 6/30/13.

⁽²⁾ The S&P 500 Total Return Index by Standard & Poor’s Corp. is a capitalization-weighted index comprising 500 issues listed on various exchanges, representing the performance of the stock market generally. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track, and individuals cannot invest directly in any index, although individuals may invest in exchange traded funds or other investment vehicles that attempt to track the performance of an index. The Catalyst Value Fund may or may not purchase the types of securities represented by the S&P 500 Total Return Index.

⁽³⁾ The Russell 2000 Value Total Return Index measures the performance of those Russell 2,000 companies with lower price-to-book ratios and lower forecasted growth values. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track; and individuals cannot invest directly in any index; although individuals may invest in exchange traded funds or other investment vehicles that attempt to track the performance of an index. The Catalyst Value Fund may or may not purchase the types of securities represented by the Russell 2000 Value Total Return Index.

⁽⁴⁾ Since inception returns for Class A shares, Class C shares and the Benchmarks assume inception date of 07/31/2006, Class I shares inception date of March 27, 2009 . The performance information quoted in this Annual Report assumes the reinvestment of all dividend and capital gain distributions, if any, and represents past performance, which is not a guarantee of future results. An investor’s return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Updated performance data to the most recent month-end can be obtained by calling the Fund at 1-866-447-4228. There is a maximum sales load of 5.75% (“sales load”) on certain Class A subscriptions. A 1% Contingent Deferred Sales Charge (“CDSC fee”) is imposed on certain redemptions of Class A shares held less than eighteen months after the date of purchase and Class C shares held less than one year after the date of purchase (excluding in each case, shares purchased with reinvested dividends and/or distributions). The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 ⁽⁵⁾ Breakout by GICS Industry.

1803-NLD-7/30/2013

Catalyst/SMH High Income Fund

Fiscal Year Ended June 30, 2013

Dear Fellow Shareholders,

The high yield asset class has continued its push forward in the face of both foreign and domestic pressures.  Many corporations continued to conservatively position their balance sheets thwarting any potential macro concerns.  These actions have benefitted the high yield asset class as default rates remain at historically low levels.

The Catalyst/SMH High Income Fund’s total returns for the year ended 06/30/13 as compared to the BofA Merrill Lynch U.S. Cash Pay High Yield Index (J0A0) ⁱ were as follows:

 

The Fund’s maximum sales charge for Class “A” shares is 4.75% . Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the Fund’s prospectus please call the Fund, toll free at 1-866-447-4228. You can also obtain a prospectus at www.catalystmf.com .

The High Yield Fund posted positive returns for the year, but underperformed its benchmark, the BofA Merrill Lynch U.S. Cash Pay High Yield Index.  The underperformance was directly attributed to the significant outperformance of certain sectors.  Due to our proprietary investment process, which primarily focuses on the balance sheet of businesses, we are precluded from investing in certain sectors. The best example of this is the banking sector of the index.  Banks remain one of the largest components of the index and provided the largest sector return during the period.  We did not participate in the run up since we remain extremely disciplined to our security selection process and will not chase returns in sectors or companies that do not fit within our philosophy. Returns were also affected by certain individual positions within the Fund that underperformed, as they represented a much larger allocation to the Fund than they did to the index.  While these factors could affect short-term performance, we continue to keep the goal of long-term performance above market returns a top priority.  

Our advocacy remains for focused active management within the high yield asset class.  The BofA Merrill Lynch U.S. Cash Pay High Yield Index currently tracks more than 2,000 individual securities making it almost impossible for any investor to replicate.  

SMH Capital Advisors consistently emphasizes the following strategies in an attempt to add returns above the interest income.

Company Buybacks and Tenders                                                                                                                         Because our fundamental research starts with companies who have strong balance sheets, some of the holdings were either tendered above par value or bought back by the issuers on the open market. This leads to capital gains ahead of maturity schedule.

Rolling Down the Curve                                                                                                                                                          As the holdings get shorter in maturity, the ‘spread’ also narrows and the yield to maturity lessens, thus the holding experiences a price increase. SMHCA captures this price increase by selling selected shorter positions and then moving ‘out’ the curve to capture a higher yield to maturity. SMHCA always attempts to keep the entire portfolio in the intermediate duration and maturity range.

High coupon defensive positions                                                                                                                                       The Portfolio Management Team has increased allocation to bonds with 10%+ coupons that it believes are expected to be called in the short to intermediate term. These holdings are considered to be relatively stable and provide what the Portfolio Management Team considered to be attractive yield to worst.

As of June 30 ^th , 2013 the Fund’s top five holdings were as follows (unaudited)

Fund’s Top Five Holdings

Radioshack Corporation 6.75% due 5/2019

7.4%

NII Capital Corp., 7.625% due 4/2021

6.4%

JC Penney Corp., Inc., 5.6% due 6/2020

5.4%

Cricket Communications 7.75% due 10/2020

5.1%

Adv. Micro Devices, Inc., 7.75% due 8/2020

4.9%

As of June 30 ^th , 2013, the Fund’s fixed income holdings were divided among economic sectors as follows (unaudited):

Industry (Corporate Bonds)
Coal	7.1%	Semiconductors	9.6%
Home Builders	4.6%	Oil, Gas & Consumable Fuels	16.3%
Investment Companies	4.6%	Retail	12.8%
Lodging	9.5%	Telecommunications	16.2%
Mining	6.7%	Transportation	8.0%
Pipelines	4.3%
		Total Fixed Income:	99.7%
		Cash
		Money Market Fund	0.3%
		Total Portfolio:	100 %

Percentages in the above table are based on market value of the Fund’s portfolio as of June 30, 2013 and are subject to change and should not be considered investment advice.

SMHCA remains committed to attempting to source the best risk to return opportunities in the high yield market based on our methodologies and disciplines. As a concentrated, alpha focused manager, we do not have the ability to gauge or control market price volatility. However, we will continue to position the Fund holdings to capture interest income and capital gains as we keep long-term above market total returns in perspective for our clients.

¹ The BofA Merrill Lynch U.S. Cash Pay High Yield Index tracks the performance of US dollar denominated below

investment grade corporate debt, currently in a coupon paying period, that is publicly issued in the US domestic market. Qualifying securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch) and an investment grade rated country of risk (based on an average of Moody’s, S&P and Fitch foreign currency long term sovereign debt ratings). In addition, qualifying securities must have at least one year remaining term to maturity, a fixed coupon schedule and a minimum amount outstanding of $100 million. "Global" securities (debt issued simultaneously in the Eurobond and US domestic bond markets), 144a securities, pay-in-kind securities, including toggle notes, qualify for inclusion in the Index. Callable perpetual securities qualify provided they are at least one year from the first call date. Fixed-to-floating rate securities also qualify provided they are callable within the fixed rate period and are at least one year from the last call prior to the date the bond transitions from a fixed to a floating rate security. Deferred interest bonds that are not yet accruing a coupon and original issue zero coupon bonds are excluded from the index. Taxable and tax exempt US municipal, DRD-eligible and defaulted securities are excluded from the Index.

²  Since inception returns assume inception date of 05/21/2008. The performance information quoted in this Annual Report assumes the reinvestment of all dividend and capital gain distributions, if any, and represents past performance, which is not a guarantee of future results. An investor’s return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Updated performance data to the most recent month-end can be obtained by calling the Fund at 1-866-447-4228.

1829-NLD-7/31/2013

Catalyst/SMH Total Return Income Fund

Fiscal Year Ended June 30, 2013

 

Dear Fellow Shareholders,

At the beginning of the year, the Fund was positioned with a 39.2% allocation to equities (high dividend paying and covered call writing opportunities) with the remaining being allocated into corporate high yield bonds. As SMHCA recognized stronger return candidates in certain equity positions we reduced the high yield bond allocations and utilized the proceeds to add to existing and new equity positions.

By the end of the Fund’s fiscal year ending June 30, 2013, we had transitioned the allocation to 45.7% corporate high yield bonds and 54.3% equities.  The performance was in line with its benchmark, the 50/50 blend of the S&P 500 Total Return Index (SPXT) ⁱⁱ and the BofA Merrill Lynch U.S Cash Pay High Yield Index (J0A0) ⁱⁱⁱ for the one year period ending June 30, 2013.

The Catalyst/SMH Total Return Income Fund’s total returns for the year ended 06/30/13 as compared to 50/50 blend of the S&P 500 Total Return Index and the BofA Merrill Lynch U.S Cash Pay High Yield Index were as follows:

The Fund’s maximum sales charge for Class “A” shares is 5.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the Fund’s prospectus please call the Fund, toll free at 1-866-447-4228. You can also obtain a prospectus at www.catalystmf.com .

SMH Capital Advisors consistently emphasizes the following strategies in an attempt to add returns above the interest income

High Yield Bonds

The high yield asset class has continued its push forward in the face of both foreign and domestic pressures.  Many corporations continued to conservatively position their balance sheets to thwart any potential macro concerns.  These actions have benefitted the high yield asset class as default rates remain at historically low levels

SMHCA’s Portfolio Management Team remains an advocate for focused active management within the high yield asset class.  The BofA Merrill Lynch U.S. Cash Pay High Yield Index currently tracks more than 2,000 line items making it almost impossible for any investor to perfectly replicate.  

High coupon defensive positions

The Portfolio Management Team has increased allocations to bonds with 10%+ coupons that it believes are expected to be called in the short to intermediate term. These holdings are considered to be relatively stable and provide what the Portfolio Management Team considered to be attractive yield to worsts.

SMHCA remains committed to attempting to source the best risk to return opportunities in the high yield market based on our methodologies and disciplines. As a concentrated, alpha focused manager, we do not have the ability to gauge or control market price volatility. However, we will continue to strive to position the Fund’s holdings to capture interest income and capital gains as we keep long-term above market total returns in perspective for our clients.

Financially Oriented Equities

We continue to find value in non-traditional financial companies such as business development companies, alternative asset managers and low leveraged real estate investment trusts (REITs). It is our opinion that these positions continue to have favorable fundamentals with attractive price to earnings ratios and strong dividends. As of 06/30/2013, the Fund had approximately a 26% allocation within these financially oriented equities.

Growth and Income Common Stocks

In this portion of the portfolio the Portfolio Management Team focused on stocks that were trading at a discounted price to earnings relative to the broad market that had average yields in the 3% to 7% range, and that the Portfolio Management Team believes had the best relative long-term return potential based on its research.

Covered Call Writing

This strategy was used on companies with high revenue/earnings growth, reasonable stock prices and call premiums which are potentially yielding 3% to 6% on average.  SMHCA writes calls 10% to 15% out of the money and 5 to 7 months from expiration.  SMHCA engaged in this strategy which seeks to provide income and some downside protection on non-dividend paying positions. Approximately 17% of the Fund was allocated to strategic covered call opportunities as of June 30, 2013.

The Fund’s top five holdings were as follows (unaudited):

Fund’s Top 5 Holdings

RadioShack Corp. 6.75% due 5/2019

6.4%

NII Capital Corp. 7.625% due 4/2021

5.6%

Fortress Investment Group, LLC Class A

5.1%

JC Penney Corp. 5.65% due 6/2020

4.9%

Marina Dist. Fin. 9.875% due 8/2018

4.6%

As of June 30, 2013, the Fund’s equity holdings were divided among economic sectors as follows (unaudited):

Industry (Common Stock)
Computers	10.4%	Retail	6.1%
Coal	2.4%	Semiconductors	6.7%
Investment Companies	25.2%	Telecommunications	7.9%
Private Equity	22.7%	Toys/Games/Hobbies	6.8%
REIT’s	11.8%	Total Common Stock:	100.0%

Percentages in the above tables are based on market value of the Fund’s portfolio as of June 30, 2013 and are subject to change and should not be considered investment advice.

¹ The index is a total return index that reflects both changes in the prices of stocks in the S&P 500 Index as well as the reinvestment of the dividend income from its underlying stocks.

² The BofA Merrill Lynch U.S. Cash Pay High Yield Index tracks the performance of US dollar denominated below

investment grade corporate debt, currently in a coupon paying period, that is publicly issued in the US domestic market. Qualifying securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch) and an investment grade rated country of risk (based on an average of Moody’s, S&P and Fitch foreign currency long term sovereign debt ratings). In addition, qualifying securities must have at least one year remaining term to maturity, a fixed coupon schedule and a minimum amount outstanding of $100 million. "Global" securities (debt issued simultaneously in the Eurobond and US domestic bond markets), 144a securities, pay-in-kind securities, including toggle notes, qualify for inclusion in the Index. Callable perpetual securities qualify provided they are at least one year from the first call date. Fixed-to-floating rate securities also qualify provided they are callable within the fixed rate period and are at least one year from the last call prior to the date the bond transitions from a fixed to a floating rate security. Deferred interest bonds that are not yet accruing a coupon and original issue zero coupon bonds are excluded from the index. Taxable and tax exempt US municipal, DRD-eligible and defaulted securities are excluded from the Index.

1828-NLD-7/31/2013

Top 10 Holdings by Industry			% of Net Assets
Retail			14.7%
Investment Companies			14.1%
Telecommunications			12.6%
Private Equity			12.3%
Lodging			7.7%
REITS			6.4%
Semiconductors			6.0%
Computers			5.7%
Pipelines			4.5%
Mining			3.9%
Other/Cash & Equivalents			12.1%
			100.0%

July 31 , 2013

Dear Fellow Shareholders,

We are pleased to bring you the Catalyst/Groesbeck Growth of Income Fund (the “Fund”) annual report for the fiscal year ended June 30, 2013.

The Fund’s maximum sales charge for Class “A” shares is 5.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the Fund’s prospectus please call the Fund, toll free at 1-866-447-4228. You can also obtain a prospectus at www.CatalystMF.com .

The stock market has been riding the coattails of a recovering U.S. economy and rising corporate earnings over the past 12 months resulting in strong performance across all equity groups. We have been able to find companies whose earnings are increasing, and very importantly, raising their dividend at a fast rate on average. Our investment strategy is to own high-quality companies with growing dividends and profits, which generally have lower earnings volatility than the average public company. Money flows into equity mutual funds has been very strong during the first six months of 2013. Part of it is a shift out of fixed income securities due to rising interest rates; however a large part is investors who resisted getting back into the stock market after the financial crisis of 2007 and 2008, finally getting back in. Many of these investors are risk averse and seek equity exposure with a decent opportunity for a good return. This is the objective of our Fund.

Our performance for the fiscal year ended June 30, 2013 benefitted from positive contributions from our stocks in the consumer discretionary, industrial, and materials sectors. Some of our best performing holdings were: Rock Tenn Co. (3.1%), BlackRock, Inc. (2.8%), Time Warner, Inc. (3.2%), Dover Corp. (2.9%), and VF Corp. (2.9%). All had good earnings results throughout the year, and a couple which are more economically sensitive, benefitted from the slowly, but consistently improving economy. The financial, healthcare, and technology sectors detracted from relative performance for the year. Also, although our lack of exposure in the telecommunications and utilities groups hurt results slightly, it helped us over the final six months of the Fund’s year. The present earnings and dividend growth prospects of these two sectors do not meet our requirements, and we believe that most telecom and utility stocks are overpriced due to their large run-up over the past couple of years.

During the past twelve months, new purchases for the Fund were: Amgen, Inc. (3.1%), Digital Realty Trust, Inc. (3.2%), General Mills, Inc. (3.1%), Hewlett-Packard Co. (3.8%), and Ventas, Inc.(2.8%).

Amgen, Inc. is the world’s largest biotechnology company – a sustainable competitive advantage, in our view. The company’s prospects are improving. In 2011, management laid out long-term earnings objectives of $7.25 - $8.60 in EPS for the year 2015. In its most recent forecasts, however, management now expects to reach that level of earnings in 2014. We expect near-term growth to come from continued operational efficiencies and share repurchases. The expiration of the company’s profit sharing agreement on the drug Enbrel will also contribute in this area. Longer term, the company has a robust pipeline of new drugs and biosimilars (subsequent versions of innovator products), and international expansion opportunities. Management is also targeting a 60% return of adjusted net income to shareholders in the form of dividends and share repurchases through 2015. The stock currently yields 1.9% and trades at a P/E of 16.2x.

Digital Realty, Inc. (DLR) is a real estate investment trust engaged in the ownership, acquisition, development, and management of technology-related real estate. It focuses on strategically-located properties containing applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise data center users, including the information technology departments of Fortune 1000 companies, and financial services companies. The company has a successful track record of strong and consistent growth. We believe DLR has significant growth prospects given secular demand trends for data center real estate. Dividend growth has been in the double digits and its yield is 5.3%.

We are attracted to General Mills, Inc. for its strong brand positions, growth opportunities, and management’s commitment to enhancing shareholder value. Among the company’s brands are Big G cereals, Betty Crocker, Pillsbury, Progresso and Hamburger Helper. Additionally, the company is a leader in the growing wholesome foods and yogurt segments of the market with brands such as Nature’s Valley, Fiber One and Yoplait. Continued successful new product launches and international expansion provide additional avenues of growth. The company has delivered dividend growth of 11% annually over the past five fiscal years and boosted the payout by 15% in fiscal 2013. The shares yield 3.1% and trade at a P/E of 17.6x.

Hewlett-Packard Co. provides computing and imaging solutions and services to consumers and businesses. The company is a turnaround story that began late last year and is starting to see the benefits of a restructuring program initiated by its new CEO. As a leader in several business products with strong brand recognition, we felt the stock got too cheap and that earnings will slowly recover while the company raises its dividend on a consistent basis.

Ventas, Inc. is a leading healthcare REIT that owns senior housing communities, nursing homes, hospitals, and medical office buildings. Last year’s acquisition of two competitors more than doubled its size. FFO growth from these transactions has been strong.  The aging U.S. population presents good long term opportunities. We expect industry-leading growth in both cash flow and dividends .

Over the past year we sold General Dynamic, McCormick & Co., and Teva Pharmaceutical.

General Dynamics (GD) was sold due to poor earnings prospects, which we believe will also slow down its future dividend increases. Fourth quarter 2012 results were disappointing, with declining revenues and contracting margins driving a drop in EPS. The ongoing Euro crisis and sequestration in the U.S. will likely hinder expansion of the federal budget, particularly the defense industry’s allocation. The current environment has hurt General Dynamics’ Information Systems and Technology unit where declining revenue and margins have led to goodwill impairment charges. Indeed, the pain may be long-lived for GD as its longer-cycle businesses - which have yet to feel the full impact of budget constraints - are likely to come under pressure from ongoing budget concerns.

McCormick was sold for valuation reasons. Although we remain impressed with the company’s fundamentals, we believe its P/E had gotten ahead of itself given the growth rates we expect from the company. In general our weighting in the classic defensive names has been lower or declining over the past year plus, as we feel in many cases, company fundamentals don’t justify the lofty valuations they have reached. For example, we have no utility stocks and our consumer staples weighting is 9%.    

Teva Pharmaceuticals (TEVA) has been experiencing weakening fundamentals as their core generics and branded drug businesses were beginning to struggle. As Copaxone nears patent expiration, sales have slowed and generic competition is heating up.  We believe it will be tough to replace the sales from this drug, and expenses to try to make up for this will have a negative impact on profits for a couple of years.

Top 10 Stock Holdings 6/30/13 (Unaudited)
Company Sector	% of Total Portfolio
UnitedHealth Group, Inc. Health Care	4.3%
Kinder Morgan Management, LLC Energy	4.0%
Hewlett-Packard Co. Technology	3.8%
Tupperware Brands Corp. Consumer Discretionary	3.5%
Microsoft Corp. Technology	3.3%
Illinois Tool Works, Inc. Industrials	3.3%
IBM Corp. Technology	3.3%
Time Warner, Inc. Consumer Discretionary	3.2%
Digital Realty Trust, Inc. Financials	3.2%
General Mills, Inc. Consumer Staples	3.1%

The portfolio’s sector breakdown at June 30, 2013 compared to the S&P 500 was as follows (Unaudited).  

Sector	% of Common Stocks	S & P 500
Technology	19.0%	17.8%
Consumer Discretionary	18.0	12.2
Industrials	15.0	10.2
Financial Services	12.0	16.7
Health Care	11.0	12.7
Materials	9.0	3.3
Consumer Staples	9.0	10.5
Energy	7.0	10.5
Utilities	0.0	3.3
Telecommunication Services	0.0	2.8

 

As we completed the three-year anniversary of the Fund this past December, we are pleased we were able to accomplish one of the main objectives of our strategy - owning stocks that consistently raise their dividends – hence the name “Growth of Income”. As has been the case since the inception of the Fund, dividend growth has been very strong. The average growth for our year-end holdings that raised their payouts for the calendar years 2010, 2011, and 2012 were 10.5%, 15.8%, and 13.3%, respectively. Through the first six months of 2013, 20 companies have increased their dividend by an average of 18.2% (see table below). These figures are a testament to both the strong earnings growth of our companies and, more importantly, the confidence that company managements have regarding their future growth prospects.

 2013 Dividend Increases

Company	Increase Declared	Company	Increase Declared
Apple, Inc.	15.1%	L-3 Communications Holdings, Inc.	10.0%
BlackRock, Inc.	12.0%	Praxair, Inc.	9.1%
Coach, Inc.	12.5%	QUALCOMM, Inc.	40.0%
Colgate-Palmolive Co.	9.7%	Rock Tenn Co.	33.3%
CSX Corp.	7.1%	Time Warner, Inc.	10.6%
Chevron Corp.	11.1%	Tupperware Brands Corp.	72.2%
General Mills, Inc.	15.2%	UnitedHealth Group, Inc.	31.8%
Hewlett-Packard Co.	10.0%	Ventas, Inc.	8.1%
International Business Machines Corp.	11.8%	Wal-Mart Stores, Inc.	18.2%
Kinder Morgan Management, LLC	8.9%	Average	18.2%

As a dividend-growth fund, what differentiates us from many other dividend managers is that our investment strategy requires that our holdings increase their dividend on a consistent and frequent basis (almost always once every 12 months). We constantly monitor the dividend increases of our portfolio holdings for consistency and rate of increase. We do not purchase stocks just for a high dividend yield. The most important characteristics we want from a dividend–paying stock are strong growth in its long-term earnings and consistently fast dividend growth. Many dividend managers own stocks that haven’t raised their payout on a consistent basis, and/or have weak growth in their fundamentals- many stocks are owned for their high dividend yield only. We believe having growth in the portfolio’s income stream is very important. It’s interesting to point out the power of fast dividend growth on a stock. If a company is yielding 3% and increases its dividend 10% annually, the yield on a cost basis will climb to 6% in seven years.  And if that happens, we believe the stock price will rise. Historical studies have shown that dividend growers have outperformed other dividend-paying stocks over the long term.

The characteristics of our portfolio continue to stack up well against the overall market and the S&P 500. The 1-year average dividend and earnings growth of our holdings have been 16.8%, and 7.2%. 5-year numbers are 16.0% and 11.7%, for dividend and earnings growth, respectively. The S&P 500’s 1-year and 5-year earnings growth is 0.2% and 10.5%, respectively. The trailing 12-month P/E for the portfolio is 15.8X, compared to 16.3X for the S&P 500.  As we have emphasized in the past, we feel the portfolio is very well positioned to provide competitive returns, while seeking low risk.

We expect stock selection will be at a premium as the market seeks companies with solid fundamentals and earnings that are rising faster than overall corporate profits. We believe our portfolio is well positioned because of its consistent and comparatively strong dividend and earnings growth. We remain committed to a strategy of investing in companies with strong business franchises, attractive long-term growth prospects, healthy balance sheets, and growing dividends.

Sincerely,

This report is intended for the Fund’s shareholders.  It may not be distributed to prospective investors unless it is preceded or accompanied by the current Fund prospectus.  To obtain a prospectus or other information about the Fund, please visit www.CatalystMF.com or call 1-866-447-4228.  Please read the prospectus carefully before investing.

⁽¹⁾ The S&P 500 Total Return Index by Standard & Poor’s Corp. is a capitalization-weighted index comprising 500 issues listed on various exchanges, representing the performance of the stock market generally.  Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track, and individuals cannot invest directly in any index, although individuals may invest in exchange traded funds or other investment vehicles that attempt to track the performance of an index.  The Catalyst/Groesbeck Growth of Income Fund may or may not purchase the types of securities represented by the S&P 500 Total Return Index.

⁽²⁾   Since inception returns assume inception date of 12/30/09.  Aggregate total return, not annualized.  The performance information quoted in this Annual Report assumes the reinvestment of all dividend and capital gain distributions, if any, and represents past performance, which is not a guarantee of future results.  An investor’s return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  Current performance may be higher or lower than the performance data quoted. Updated performance data to the most recent month-end can be obtained by calling the Fund at 1-866-447-4228.  There is a maximum sales load of 5.75% (“sales load”) on certain Class A subscriptions.  A 1% Contingent Deferred Sales Charge (“CDSC fee”) is imposed on certain redemptions of Class A shares held less than eighteen months after the date of purchase and Class C shares held less than one year after the date of purchase (excluding in each case, shares purchased with reinvested dividends and/or distributions).  The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.  

1807-NLD-7/30/2013

July 31, 2013

Dear Fellow Shareholders,

I am pleased to report that the Catalyst Strategic Insider Fund (formerly, the Catalyst Strategic Value Fund) has performed to our expectations for fiscal year ended June 30 ^th , 2013. As a fully hedged strategy, the Fund is designed to provide investors upside with reduced volatility while also protecting from market downturns. Although equities had a great year, it’s important to remember that 2012 Q4 was actually a down market. For 2012 Q4, when the market was down 38 bps, the Catalyst Strategic Insider Fund was up 263 bps, achieving its target objective. In fact, the Catalyst Strategic Insider Fund has achieved its objectives over the long run: since inception in 2010, the Fund has generated 10.4% annualized returns with 33% less volatility than the S&P 400 Index and has provided downside protection.

Investment Strategy

The Catalyst Strategic Insider Fund offers a dynamic alternative to traditional equity investing, seeking a focus on risk management while also generating stable income. The Fund uses a quantitative methodology that selects for superior information signals, including an evaluation of corporate insider activity. We believe that corporate insiders understand their own firm better than any outsider possibly could. The Fund seeks to select the best mid-cap companies that have significant corporate insider trading conviction while also trading at a discount to fair value. The Fund sells short up to approximately 10% of the portfolio through put options in companies deemed overpriced and under-performing with significant insider selling. The Fund also writes covered calls on the market indices in an attempt to manage volatility, reduce risk and generate premium income.

The Fund uses public information that is filed with the Securities and Exchange Commission (“SEC”) on corporate insider and large shareholder buying and selling activity for its investment decisions. Numerous academic studies and our own research of insider trading data over long periods of time has resulted in the proprietary method of analyzing activity that we believe can provide long-term capital appreciation. When looking at SEC filings, we focus on the insider identity (position in the company), potential motivation for buying, insider trading trends, trading volumes, firm size and other factors to select stocks for the portfolio. We sell stocks when the relevant insider trading trends reverse or when portfolio positions achieve or no longer provide targeted risk-adjusted return.

Fiscal Year 2013 Performance

The Catalyst Strategic Insider Fund has performed to our expectations for fiscal year ended 2013. The Fund has generated +20% returns with reduced risk and downside protection. When compared to other long/short funds in the Morningstar Long/Short Equity Category, the Fund has outperformed the category average by +13.5%. Although the Fund is fully hedged, we believe the significant upside is the result of the alpha from our corporate insider buying investment strategy. Similarly, we believe the insider strategy in combination with covered calls and short positions have allowed us to provide the downside protection and reduced volatility.

The Fund’s total returns for the fiscal year ended 06/30/13, the 2 years ended 06/30/13 and for the period since inception through 06/30/13 as compared to the S&P Mid-Cap 400 Total Return Index ⁽¹⁾ and Morningstar Long/Short Equity Category were as follows:

	Fiscal Year Ended (06/30/13)	2 Years Ended (06/30/13)	Since Inception (10/28/10) 3
Class A without sales charge	22.41%	6.51%	10.49%
Class A with sales charge	15.38%	3.41%	8.07%
Class C	22.04%	5.95%	10.06%
S&P Mid-Cap 400 Total Return Index 1	25.18%	10.57%	15.23%
IQ Hedge Long/Short Beta Index 2	8.46%	2.58%	4.49%

Data source: 2013 Q2 Fact Sheet

The Fund’s maximum sales charge for Class “A” shares is 5.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the Fund’s prospectus please call the Fund, toll free at 1-866-447-4228. You can also obtain a prospectus at www.CatalystMF.com .

Portfolio Holdings

We emphasize holding approximately 30 to 40 mid-capitalization companies with significant insider buying. Through our historical research, we found that there are generally at least 30 stocks that meet our requirements. As of June 30 ^th , 2013, we held 34 names with significant insider buying.

As of June 30 ^th , 2013, the Fund’s top five holdings were as follows (unaudited):

Fund’s Top 5 Holdings	% of Portfolio
Linn Energy LLC	3.2%
Sunoco Logistics Partners L.P.	3.1%
AOL, Inc	3.1%
Apache Corp.	3.1%
Edwards Lifesciences Corp.	3.0%

Percentages in the above table are based on market value (excluding collateral) of the Fund’s portfolio as of June 30, 2013 and are subject to change and should not be considered investment advice.

As of June 30 ^th , 2013, the Fund’s equity holdings were divided among economic sectors as follows (unaudited):

 

Industry 4 (Common Stock)
Auto Components	2.49%	Internet Software & Services	6.06%
Biotechnology	2.58%	IT Services	2.69%
Capital Markets	2.68%	Machinery	2.37%
Chemicals	4.03%	Oil, Gas & Consumable Fuels	22.05%
Commercial Banks	2.93%	Pharmaceuticals	2.87%
Commercial Services & Supplies	5.82%	Real Estate Investment Trusts (REITs)	1.89%
Diversified Telecommunication Services	1.33%	Real Estate Management & Development	2.87%
Electric Utilities	1.92%	Specialty Retail	2.68%
Electrical Equipment	2.86%	Thrifts & Mortgage Finance	3.07%
Energy Equipment & Services	2.67%	Trading Companies & Distributors	6.94%
Health Care Equipment & Supplies	3.07%	Total Common Stock:	85.87%
Options		Cash
Call & Put Options	-1.52%	Money Market Fund	15.65%
		Total Portfolio:	100%

Percentages in the above table are based on market value of the Fund’s portfolio as of June 30 ^th , 2013 and are subject to change.

Summary

We hold a portfolio of mid-capitalization U.S. companies trading at a discount to fair value and experiencing significant insider buying – situations where those that know the most about the company are taking their own money and putting it back in the company through open market purchases. By reviewing numerous academic studies and performing our own historical research, we’ve found that this strategy significantly outperforms the market over the long run. We are pleased with the performance relative to the more relevant Morningstar Long/Short Equity Category as well as the S&P Mid-Cap 400 Total Return Index, considering the Fund has captured significant upside while seeking downside protection. Successful investing requires a long-term outlook focused on objective criteria that create value. We have adopted an outlook for the Catalyst Strategic Insider Fund, and we are glad that you have decided to share in our vision.

Sincerely,

David Miller

Senior Portfolio Manager

This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current Fund prospectus. To obtain a prospectus or other information about the Fund, please visit www.CatalystMF.com or call 1-866-447-4228. Please read the prospectus carefully before investing.

⁽¹⁾ The S&P Mid-Cap 400 Total Return Index by Standard & Poor’s Corp. is a capitalization-weighted index comprising 400 issues listed on various exchanges, representing the performance of the mid-capitalization stock market generally. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track, and individuals cannot invest directly in any index, although individuals may invest in exchange traded funds or other investment vehicles that attempt to track the performance of an index. The Catalyst Strategic Insider Fund may or may not purchase the types of securities represented by the S&P 400 Total Return Index.

⁽²⁾ The IQ Hedge Long/Short Beta Index attempts to replicate the risk-adjusted return characteristics of the collective hedge funds using a long/short equity investment style. Long/short equity hedge fund managers typically invest on both long and short sides of equity markets and diversify their risks by limiting the net exposure to particular sectors, regions or market capitalizations and focusing on company specific anomalies. You cannot invest directly in an index.

 ⁽³⁾ Since inception returns assume inception date of 10/28/2010. The performance information quoted in this Annual Report assumes the reinvestment of all dividend and capital gain distributions, if any, and represents past performance, which is not a guarantee of future results. An investor’s return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Updated performance data to the most recent month-end can be obtained by calling the Fund at 1-866-447-4228. There is a maximum sales load of 5.75% (“sales load”) on certain Class A subscriptions. A 1% Contingent Deferred Sales Charge (“CDSC fee”) is imposed on certain redemptions of Class A shares held less than eighteen months after the date of purchase and Class C shares held less than one year after the date of purchase (excluding in each case, shares purchased with reinvested dividends and/or distributions). The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 ⁽⁴⁾ Breakout by GICS Industry.

1804-NLD-7/30/2013

July 31, 2013

Dear Fellow Shareholders,

We are pleased to report a very strong year for the Catalyst Insider Buying Fund (formerly, the Catalyst Large Cap Value Fund). The Fund invests in large capitalization U.S. companies that are experiencing significant insider buying. The Catalyst Insider Buying Fund has outpaced the S&P 500 by +12.5% for the previous year . When considering that the Fund is long-only and invested in 35 stocks with a median market-cap of $22 billion, we believe the Fund’s significant outperformance reflects the strength of the insider buying information signal we use to make investment decisions.

Investment Strategy

The Fund uses a quantitative methodology that ranks insider activity based on the strength of the signals that insiders are generating relative to how many executives are buying and how many shares they are purchasing. We believe that corporate insiders understand their own firm better than any outsider investor possibly could.

The Fund uses public information that is filed with the Securities and Exchange Commission (“SEC”) on corporate insider and large shareholder buying and selling activity for its investment decisions. Numerous academic studies and our own research of insider trading data over long periods of time has resulted in the proprietary method of analyzing activity that we believe can provide long-term capital appreciation. When looking at SEC filings, we focus on the insider identity (position in the company), potential motivation for buying, insider trading trends, trading volumes, firm size and other factors to select stocks for the portfolio. We sell stocks when the relevant insider trading trends reverse or when portfolio positions achieve or no longer provide targeted risk-adjusted return.

Fiscal Year 2013 Performance

The Catalyst Insider Buying Fund has substantially outperformed the S&P 500 Index for the trailing year, up 32.99% compared to just 20.60% for the index. We are pleased with this significant outperformance and believe that it aligns with the outperformance we would expect based on our research on and analysis of the strategy.

The Fund’s total returns for 2013 year-to-date through 06/30/13, the fiscal year ended 06/30/13 and for the period since inception through 06/30/13 as compared to the S&P 500 Total Return Index ⁽¹⁾ were as follows:

	2013 YTD (06/30/13)	Fiscal Year Ended (06/30/13)	Since Inception (07/29/11) 2
Class A without sales charge	20.11%	32.99%	18.95%
Class A with sales charge	13.24%	25.29%	15.35%
Class C	19.78%	32.14%	19.54%
S&P 500 Total Return Index 1	13.82%	20.60%	14.53%

Data source: 2013 Q2 Fact Sheet

The Fund’s maximum sales charge for Class “A” shares is 5.75%. Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the Fund’s prospectus please call the Fund, toll free at 1-866-447-4228. You can also obtain a prospectus at www.CatalystMF.com .

Portfolio Holdings

We emphasize holding companies with market capitalizations of at least $10 billion. From our historical research, we found that there are generally about 30 stocks that meet our requirements. As of June 30 ^th , 2013, we held 35 names with significant insider buying.

As of June 30 ^th , 2013, the Fund’s top five holdings were as follows (unaudited):

Fund’s Top 5 Holdings	% of Portfolio
Edwards Lifesciences Corp.	2.9%
Apache Corp.	2.9%
Cognizant Tech Solutions Corp. – Class A	2.8%
Liberty Media Corp.- Class A	2.8%
HollyFrontier Corp.	2.8%

Percentages in the above table are based on market value of the Fund’s portfolio as of June 30, 2013 and are subject to change and should not be considered investment advice.

As of June 30 ^th , 2013, the Fund’s equity holdings were divided among economic sectors as follows (unaudited):

 

Industry 3 (Common Stock)
Aerospace & Defense	2.79%	Insurance	2.81%
Auto Components	1.83%	IT Services	2.83%
Biotechnology	4.65%	Media	2.83%
Chemicals	1.78%	Metals & Mining	2.70%
Commercial Services & Supplies	2.11%	Multiline Retail	2.82%
Diversified Financial Services	4.24%	Oil, Gas & Consumable Fuels	21.04%
Electric Utilities	3.12%	Pharmaceuticals	2.26%
Energy Equipment & Services	2.52%	Real Estate Investment Trusts (REITs)	4.57%
Food Products	2.19%	Specialty Retail	2.78%
Health Care Equipment & Supplies	5.17%	Tobacco	2.75%
Health Care Providers & Services	1.68%	Trading Companies & Distributors	2.49%
Industrial Conglomerates	2.19%	Total Common Stock:	84.15%
		Cash
		Money Market Fund	15.85%
		Total Portfolio:	100%

Percentages in the above table are based on market value of the Fund’s portfolio as of June 30 ^th , 2013 and are subject to change.

 

Summary

We hold a relatively concentrated portfolio of large-capitalization U.S. companies experiencing significant insider buying – situations where those that know the most about the company are taking their own money and putting it back in the company through open market purchases. By reviewing numerous academic studies and performing our own research, we feel that this strategy has the potential to outperform the S&P 500 Index over the long run. We are pleased with the +12.5% outperformance for fiscal year 2013, and we believe this performance aligns with how we’d expect the strategy to perform. Successful investing requires a long-term outlook focused on objective criteria that create value. We have adopted an outlook for the Catalyst Insider Buying Fund, and we are glad that you have decided to share in our vision.

Sincerely,

David Miller

Senior Portfolio Manager

This report is intended for the Fund’s shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current Fund prospectus. To obtain a prospectus or other information about the Fund, please visit www.CatalystMutualFunds.com or call 1-866-447-4228. Please read the prospectus carefully before investing.

⁽¹⁾ The S&P 500 Total Return Index by Standard & Poor’s Corp. is a capitalization-weighted index comprising 500 issues listed on various exchanges, representing the performance of the stock market generally. Please note that indices do not take into account any fees and expenses of investing in the individual securities that they track, and individuals cannot invest directly in any index, although individuals may invest in exchange traded funds or other investment vehicles that attempt to track the performance of an index. The Catalyst Insider Buying Fund may or may not purchase the types of securities represented by the S&P 500 Total Return Index.

 ⁽²⁾ Since inception returns assume inception date of 07/29/2011. The performance information quoted in this Annual Report assumes the reinvestment of all dividend and capital gain distributions, if any, and represents past performance, which is not a guarantee of future results. An investor’s return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Updated performance data to the most recent month-end can be obtained by calling the Fund at 1-866-447-4228. There is a maximum sales load of 5.75% (“sales load”) on certain Class A subscriptions. A 1% Contingent Deferred Sales Charge (“CDSC fee”) is imposed on certain redemptions of Class A shares held less than eighteen months after the date of purchase and Class C shares held less than one year after the date of purchase (excluding in each case, shares purchased with reinvested dividends and/or distributions). The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

⁽³⁾ Breakout by GICS Industry.

1805-NLD-7/30/2013

Dear Shareholders:

The Catalyst/MAP Global Capital Appreciation Fund’s total returns for the period since inception through 06/30/13 as compared to the MSCI All Country World Stock Index ⁽¹⁾ were as follows:

Fund vs Index Performance	Twelve Months ended 6/30/13	Since Inception 7/29/2011 Class A & C 2
Class A without sales charge	13.75%	7.07%
Class A with sales charge	7.22%	3.83%
Class C	12.92%	6.26%
MSCI All Country World Stock Index 1	16.57%	5.48%

The Fund’s maximum sales charge for Class “A” shares is 5.75% . Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the Fund’s prospectus please call the Fund, toll free at 1-866-447-4228. You can also obtain a prospectus at www.catalystmf.com.  

Over the course of the preceding twelve months, the global economy continued to sputter along, dragged down by an excessive amount of debt in the system, offset by Central Banks’ Quantative Easing’s (QE) and record low interest rates.  Last September, the U.S. Federal Reserve initiated its third round of Quantative Easing to the tune of $85 billion per month in the hopes that this action would push interest rates lower and help to stimulate the economy.   In April and May of this year, interest rates fell to historically low levels which haven’t been seen in hundreds of years (for example, the yield on the 10 year Treasury hit levels not seen since the 1700s).

Many of our large, defensive holdings performed very well given the economic environment. Furthermore, their attractive dividend yields also appealed to yield hungry investors.  Names such as Johnson & Johnson (2.3%), Novartis AG (2.2%), Vodafone Group PLC (3.5%), Campbell Soup Co. (3.6%), and Molson Coors Brewing Co. (3.2%) aided overall performance during the fiscal year.  

Additionally, many of our investments in Southeast Asia also performed strongly, bolstered by their robust economies and expanding middle classes. Companies such as Thai Tap Water Supply PLC (1.0%), and Bangkok Expressway PCL (1.8%), experienced impressive gains.  As their share prices moved higher and their valuations reached levels that we deemed to approach fair value, we began to sell some of these holdings.  

During the course of fiscal 2013, we added to our exposure in the European continent.  The financial woes of these countries have been well publicized and brought many European equities to valuation levels we view as attractive.  In this region, we added names like Vivendi (France) (1.0%), GDF Suez (France) (2.5%), Suez Environnement Co. (France) (1.2%), RTL Group SA (Belgium) 2.8%), and Rheinmetall AG (Germany) (4.4%).  

On the negative side, some of our gold-related investments, such as Newmont Mining Corp. (1.0%), Novagold Resources, Inc. (1.1%), and Albemarle & Bond Holdings (1.0%) were impacted by the fall off in gold prices.  After rising for twelve consecutive years, gold fell more than 20% during the first half of calendar year 2013.  While disappointed by the performance of gold during this timeframe, we continue to believe in the long-term investment merits of the precious metal.  Although reported inflation has been under control, we believe the average American is feeling inflation at a rate much greater than 2% and furthermore, continued rounds of global QE should push prices higher.  

An integral piece of our strategy is the incorporation of covered call writing on the equity portion of the portfolio.  Generally, when volatility increases, so do time premiums for options.  Thus, it is usually during periods of heightened volatility that we write the most covered calls.  With volatility relatively calm during this most recent year, our covered call writing activity was reduced from the prior year.

As we look forward, we anticipate more of the same from the economy.  While we believe unemployment levels could see improvement from here, we anticipate they will remain above 6% for some time. Additionally, we do not see the labor force participation rate (the share of the population 16 years of age and older working or seeking work) improving from current levels. Furthermore, we expect GDP to continue to expand at its current 2% clip. As a result, we believe this will lead to more of the same from the Fed; a contradiction to the current projection some economists anticipate. Accordingly, we continue to view equities as the most favorable asset class, and as such, expect the broader markets to continue to perform well, albeit not without its fits and starts. Furthermore, we continue to look for opportunities in names that do not rely on a strong economy to thrive, as well as those names that offer compelling dividend yields subsequent to their attractive valuations.   

Given the historically low level of interest rates, we do not believe it is prudent to own longer dated bonds, despite our belief that QE3 will continue for quite some time.  Accordingly, we are keeping our maturities relatively short with a Weighted Average Maturity (WAM) of approximately one year.

In closing, we are truly appreciative of the trust you please in us.  Rest assured, it is our intention to continue to work diligently and ethically, every day, to maintain that trust.   

Kindest regards,

Michael S. Dzialo, Peter J. Swan, and Karen M. Culver

Portfolio Managers

Holdings are subject to change and should not be considered investment advice.

⁽¹⁾ A market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI ACWI is maintained by Morgan Stanley Capital International, and is comprised of stocks from both developed and emerging markets.

⁽²⁾ Aggregate total return, not annualized. Since inception returns assume inception date of 7/29/2011. The performance information quoted in this Annual Report assumes the reinvestment of all dividend and capital gain distributions, if any, and represents past performance, which is not a guarantee of future results. An investor’s return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Updated performance data to the most recent month-end can be obtained by calling the Fund at 1-866-447-4228. There is a maximum sales load of 5.75% (“sales load”) on certain Class A subscriptions. A 1% Contingent Deferred Sales Charge (“CDSC fee”) is imposed on certain redemptions of Class A shares held less than eighteen months after the date of purchase and Class C shares held less than one year after the date of purchase (excluding in each case, shares purchased with reinvested dividends and/or distributions). The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

1779-NLD-7/29/2013

Dear Shareholders:

The Catalyst/MAP Global Total Return Income Fund’s total returns for the period since inception through 06/30/13 as compared to the MSCI All Country World Stock Index ⁽¹⁾ were as follows:

Fund vs Index Performance	Twelve Months ended 6/30/13	Since Inception 7/29/2011 Class A & C 2
Class A without sales charge	11.13%	6.64%
Class A with sales charge	4.73%	3.41%
Class C	10.27%	5.80%
MSCI All Country World Stock Index Net 1	16.57%	5.48%

The Fund’s maximum sales charge for Class “A” shares is 5.75% . Investments in mutual funds involve risks. Performance is historic and does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information or the Fund’s prospectus please call the Fund, toll free at 1-866-447-4228. You can also obtain a prospectus at www.catalystmf.com.  

Over the course of the preceding twelve months, the global economy continued to sputter along, dragged down by an excessive amount of debt in the system, offset by Central Banks’ Quantative Easing’s (QE) and record low interest rates.  Last September, the U.S. Federal Reserve initiated its third round of Quantative Easing to the tune of $85 billion per month in the hopes that this action would push interest rates lower and help to stimulate the economy.   In April and May of this year, interest rates fell to historically low levels which haven’t been seen in hundreds of years (for example, the yield on the 10 year Treasury hit levels not seen since the 1700s).

Many of our large, defensive holdings performed very well given the economic environment. Furthermore, their attractive dividend yields also appealed to yield hungry investors.  Names such as Johnson & Johnson (2.3%), Novartis AG (1.8%), Vodafone Group PLC (3.1%), Campbell Soup Co. (0.8%), and Molson Coors Brewing Co. (0.9%) aided overall performance during the fiscal year.  

Additionally, many of our investments in Southeast Asia also performed strongly, bolstered by their robust economies and expanding middle classes. Companies such as Thai Tap Water Supply PLC (0.8%), Bangkok Expressway PCL (1.4%), Thai Beverage (not held at year-end), and Frasier and Neave (not held at year-end) all experienced impressive gains.  The latter two names also benefited from the divesture of some business lines.   As their share prices moved higher and their valuations reached levels that we deemed to approach fair value, we began to sell some of these holdings.  

During the course of fiscal 2013, we added to our exposure in the European continent.  The financial woes of these countries have been well publicized and brought many European equities to valuation levels we view as attractive.  In this region, we added names like GDF Suez (France) (1.2%), Suez Environnement Co. (France) (1.3%), RTL Group SA (Belgium) (2.7%), and Rheinmetall AG (Germany) (1.1%).

On the negative side, some of our gold-related investments, such as Newmont Mining Corp., Novagold Resources, Inc., iShares Gold, and Albemarle & Bond Holdings were impacted by the fall off in gold prices.  After rising for twelve consecutive years, gold fell more than 20% during the first half of calendar 2013.  While disappointed by the performance of gold during this timeframe, we continue to believe in the long-term investment merits of the precious metal.  Although reported inflation has been under control, we believe the average American is feeling inflation at a rate much greater than 2% and furthermore, continued rounds of global QE should push prices higher.  

An integral piece of our strategy is the incorporation of covered call writing on the equity portion of the portfolio.  Generally, when volatility increases, so do time premiums for options.  Thus, it is usually during periods of heightened volatility that we write the most covered calls.  With volatility relatively calm during this most recent year, our covered call writing activity was reduced from the prior year.

As we look forward, we anticipate more of the same from the economy.  While we believe unemployment levels could see improvement from here, we anticipate they will remain above 6% for some time. Additionally, we do not see the labor force participation rate (the share of the population 16 years of age and older working or seeking work) improving from current levels. Furthermore, we expect GDP to continue to expand at its current 2% clip. As a result, we believe this will lead to more of the same from the Fed; a contradiction to the current projection some economists anticipate. Accordingly, we continue to view equities as the most favorable asset class, and as such, expect the broader markets to continue to perform well, albeit not without its fits and starts. Furthermore, we continue to look for opportunities in names that do not rely on a strong economy to thrive, as well as those names that offer compelling dividend yields subsequent to their attractive valuations.   

Given the historically low level of interest rates, we do not believe it is prudent to own longer dated bonds, despite our belief that QE3 will continue for quite some time.  Accordingly, we are keeping our maturities relatively short with a Weighted Average Maturity (WAM) of approximately one year.

In closing, we are truly appreciative of the trust you please in us.  Rest assured, it is our intention to continue to work diligently and ethically, every day, to maintain that trust.   

Kindest regards,

Michael S. Dzialo, Peter J. Swan, and Karen M. Culver

Portfolio Managers

Holdings are subject to change and should not be considered investment advice.

⁽¹⁾ A market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI ACWI is maintained by Morgan Stanley Capital International, and is comprised of stocks from both developed and emerging markets.

⁽²⁾ Aggregate total return, not annualized. Since inception returns assume inception date of 7/29/2011. The performance information quoted in this Annual Report assumes the reinvestment of all dividend and capital gain distributions, if any, and represents past performance, which is not a guarantee of future results. An investor’s return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Updated performance data to the most recent month-end can be obtained by calling the Fund at 1-866-447-4228. There is a maximum sales load of 5.75% (“sales load”) on certain Class A subscriptions. A 1% Contingent Deferred Sales Charge (“CDSC fee”) is imposed on certain redemptions of Class A shares held less than eighteen months after the date of purchase and Class C shares held less than one year after the date of purchase (excluding in each case, shares purchased with reinvested dividends and/or distributions). The returns shown do not reflect taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

1780-NLD-7/29/2013