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Salient Adaptive Growth Fund

Daily NAV

Updated: 6/19/18

Inception Date
Jul 9, 2012
Net Assets (All Classes)
$22.4 M

The fund is closed to new investments as of June 13, 2018.



The strategy systematically allocates capital across a broad set of asset classes using an adaptive approach in order to better align with market sentiment fluctuations and provide meaningful return enhancement over a full market cycle.

Three Things to Know

  • The portfolio is designed for a variety of conditions by investing in asset classes that provide potential for positive return from varied and explainable economic and behavioral factors
  • While traditional risk parity strategies allocated based on discretionary views, quantitative signals, or both, we include an equal risk budget to momentum
  • Momentum tends to be less correlated to the other asset classes in the strategy and aims to provide a layer of diversification that can contribute to increased risk-adjusted returns over time


Objective: The fund seeks long term capital appreciation.

  • The investment process starts with target risk allocation and then allows the dollar allocations to adjust to maintain the risk target of 15% annually, as calculated by standard deviation
  • The team dynamically adjusts exposures across asset classes to maintain a constant level of volatility as risk levels and correlations change
  • The resulting portfolio is diversified across over 50 positions within major asset classes: equities, commodities, credit, rates, and within momentum*

*Momentum investing entails establishing long positions in securities with positive recent returns and short positions in those with negative recent returns.


Roberto Croce, Ph.D.

Managing Director, Quantitative Strategies

Nathan J. Rowader

Senior Portfolio Manager
San Francisco

Nicholas Millikan, CAIA, CFA

Director, Head of Investment Strategy
San Francisco

Xuan Huan

Senior Analyst

Berto Brauns

Associate Portfolio Manager

Eduardo Sahione

Senior Quantitative Analyst

Scott Chun

San Francisco

Nicholas Millikan and Nathan J. Rowader are registered representatives of ALPS Distributors, Inc.

Nicholas Millikan has earned the right to use the Chartered Financial Analyst designation. CFA Institute marks are trademarks owned by the CFA Institute.


Performance (%)

  May'181 Q12 YTD2 1 YR2 3 YR2 5 YR2 SINCE
Institutional NAV -0.42 -1.94 -1.94 10.29 3.86 3.85 4.65
Class A NAV* -0.42 -1.97 -1.97 10.16 3.60 3.58 4.81
Class A MOP** -5.85 -7.30 -7.30 4.15 1.67 2.42 3.71
Class C NAV† -0.45 -2.07 -2.07 9.35 2.73 2.73 3.51
Class C MOP‡ -1.44 -3.05 -3.05 8.37 2.73 2.73 3.51
MSCI AC World Index 0.12 -0.96 -0.96 14.85 8.12 9.20
Barclays Agg Bond Index 0.71 -1.46 -1.46 1.20 1.20 1.82
60/40 Index 0.36 -1.09 -1.09 9.30 5.45 6.33

1. As of 05/31/2018
2. As of 03/31/2018

Returns for periods greater than one year are annualized.
* Excludes sales charge.
** Reflects effects of the fund’s maximum sales charge of 5.50%.
† Excludes the effects of the 1% contingent deferred sales charge.
‡ Includes the effects of the 1% contingent deferred sales charge.

Performance data quoted represents past performance and does not guarantee future results. Investment returns and principal values may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown. All returns reflect reinvestment of all dividend and capital gain distributions. Index performance is shown for illustrative purposes only and does not reflect the payment of advisory fees and other expenses associated with an investment in a mutual fund. Investors cannot directly invest in an index. The performance shown is for the stated time period only; due to market volatility, each account’s performance may be different.

The share classes have different sales charges, fees and other features. Returns with sales charges reflect the deduction of the current maximum front-end sales charge of 5.50% for Class A shares and the maximum contingent deferred sales charge of 1.00%, which is applied to Class C shares upon which a finder’s fee has been paid and that are sold within one year of purchase. Class A shares are available with no front-end sales charge on investments of $1 million or more, and Class C shares are offered at NAV, without any initial sales charge. Class I shares are offered without any sales charge to certain institutional investors and affiliates of the Fund’s investment advisor. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.

Calendar Year Performance (%)

Class A16.8114.13-11.1813.58-4.78
Class C15.9112.87-11.8612.84-5.49
MSCI AC World Index23.977.86-2.364.1622.80
Barclays Agg Bond Index3.542.650.555.97-2.02
60/40 Index15.415.92-0.965.0112.33

Expense Ratio as of 05/01/2018

  Gross Net
Class A 2.01% 1.67%
Class C 2.83% 2.42%
Institutional 1.82% 1.42%

Annual Fund Operating Expenses includes management fees, distribution and service (12b-1) fees, acquired fund (subsidiary) fees and expenses, and “other expenses.” See the Fund’s prospectus for more information.

Under an expense limitation agreement, the investment advisor has contractually agreed to waive its management fee and/or reimburse or pay operating expenses of the Fund to the extent necessary to maintain the Fund’s total operating expenses at 1.55% for Class A, 2.30% for Class C and 1.30% for Class I shares, excluding certain expenses, such as taxes, brokerage commissions, interest, short dividend expense, any acquired fund fees and expenses, expenses associated with the Fund’s investments in the Subsidiary, litigation and extraordinary expenses. This expense limitation agreement expires on April 30, 2019, and may only be modified or terminated by a majority vote of the independent trustees. The advisor is permitted to recover waived expenses for a period of up to three years.


Top 5 Holding by Risk Contribution (% of Net Assets) as of 03/31/2018

Holdings % Risk Contribution
US HY CDS 7.80%
HSCEI 6.90%
EU HY CDS 6.70%
US IG CDS 6.40%
S & P 500 6.40%

Portfolio Risk Contribution By Signal (%)

The calculation of risk contribution is based on modern portfolio theory’s calculation of portfolio risk and the contribution of a portfolio’s underlying assets to the portfolio risk are based on the dollar weights, standard deviation, and correlation as calculated by Salient Advisors, L.P.

Data displayed here has been rounded to the nearest tenth and is for illustrative purposes only. Allocations are subject to change.

Investing in momentum entails establishing long positions in securities that have had positive recent returns, and short positions in securities that have had negative recent returns.

The specific securities identified are not representative of all of the securities purchased or held by the fund, and it should not be assumed that the investment in the securities identified was or will be profitable. Allocations are subject to change.

Distributions & Tax Information


Share Class Type Record Date Distribution
Per Share ($)
Ex-Dividend /
Reinvest Date
Payable Date
Institutional Income Dividend 12/27/2017 0.04500 12/28/2017 12/29/2017
Institutional Long-Term Capital Gain 12/27/2017 0.16500 12/28/2017 12/29/2017
Institutional Short-Term Capital Gain 12/27/2017 0.66800 12/28/2017 12/29/2017
Class A Income Dividend 12/27/2017 0.02500 12/28/2017 12/29/2017
Class A Long-Term Capital Gain 12/27/2017 0.16500 12/28/2017 12/29/2017
Class A Short-Term Capital Gain 12/27/2017 0.66800 12/28/2017 12/29/2017
Class C Long-Term Capital Gain 12/27/2017 0.16500 12/28/2017 12/29/2017
Class C Short-Term Capital Gain 12/27/2017 0.66800 12/28/2017 12/29/2017

A final determination of the tax character of distributions paid by the fund will not be known until the completion of the fund’s fiscal year and there can be no assurance as to the portions of the fund’s distributions that will constitute return of capital and/or dividend income. The final determination of the tax character of distributions paid by the fund will be reported to shareholders in the January after fiscal year end on form 1099-DIV. Please consult your tax advisor for proper treatment on your tax return.

Related Resources

Click here for fund-specific risks and definitions.

Investment Advisory Services for the Salient Risk Parity Fund are offered through Salient Advisors, L.P., a subsidiary of Salient Partners, L.P. Mutual Funds are distributed by Foreside Fund Services, LLC. The information contained herein does not constitute an offering of any security, product, service or fund. Salient funds are offered by prospectus and only to United States residents. The prospectus is available by clicking here.

Fund Specific Risks

Salient Adaptive Growth Fund

Principal Investment Risks

An investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. The fund’s principal risk factors are listed below. The fund’s shares will go up and down in price, meaning that you could lose money by investing in the fund. Many factors influence a mutual fund’s performance. An investment in the fund is not intended to constitute a complete investment program and should not be viewed as such. Before investing, be sure to read the additional descriptions of these risks beginning on page 60 of the prospectus.

As an overall matter, instability in the financial markets has led many governments, including the United States government, to take a number of unprecedented actions designed to support certain financial institutions and segments of the financial markets that have experienced extreme volatility and, in some cases, a lack of liquidity. Federal, state and other governments, and their regulatory agencies or self-regulatory organizations, may take actions that affect the regulation of the instruments in which the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Legislation or regulation may also change the way in which the Fund itself is regulated. Such legislation or regulation could limit or preclude the fund’s ability to achieve its investment objective.

Risks of Investment Activities Generally

All securities investing and trading activities risk the loss of capital. No assurance can be given that the fund’s investment activities will be successful or that the fund’s shareholders will not suffer losses.

Commodities Risk

Exposure to the commodities markets may subject the fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative investments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity, such as drought, floods, weather, embargoes, tariffs and international economic, political and regulatory developments.

Counterparty Risk

In general, a derivative contract typically involves leverage, i.e., it provides exposure to potential gain or loss from a change in the level of the market price of a security, currency or commodity (or a basket or index) in a notional amount that exceeds the amount of cash or assets required to establish or maintain the derivative contract. Many of these derivative contracts will be privately negotiated in the over-the-counter market. These contracts also involve exposure to credit risk, since contract performance depends in part on the financial condition of the counterparty. If a privately negotiated over-the-counter contract calls for payments by the fund, the fund must be prepared to make such payments when due. In addition, if a counterparty’s creditworthiness declines, the fund may not receive payments owed under the contract, or such payments may be delayed under such circumstances and the value of agreements with such counterparty can be expected to decline, potentially resulting in losses by the fund.

Credit Risk

Credit risk refers to the possibility that the issuer of the security will not be able to make principal and interest payments when due. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the fund’s investment in that issuer. The degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation. Securities rated in the four highest categories (Standard & Poor’s (“S&P”) (AAA, AA, A and BBB), Fitch Ratings (“Fitch”) (AAA, AA, A and BBB) or Moody’s Investors Service, Inc. (“Moody’s”) (Aaa, Aa, A and Baa)) by the rating agencies are considered investment grade but they may also have some speculative characteristics, meaning that they carry more risk than higher rated securities and may have problems making principal and interest payments in difficult economic climates. Investment grade ratings do not guarantee that bonds will not lose value.

Currency Risk

The risk that changes in currency exchange rates will negatively affect securities denominated in, and/or receiving revenues in, foreign currencies. The liquidity and trading value of foreign currencies could be affected by global economic factors, such as inflation, interest rate levels, and trade balances among countries, as well as the actions of sovereign governments. Adverse changes in currency exchange rates (relative to the U.S. dollar) may erode or reverse any potential gains from the fund’s investments in securities denominated in a foreign currency or may widen existing losses. The fund’s net currency positions may expose it to risks independent of its securities positions.

Debt Securities Risk

Fixed-income securities generally are subject to credit risk and interest rate risk. Credit risk refers to the possibility that the issuer of a security will be unable to make interest payments and/or repay the principal on its debt. Interest rate risk refers to fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates. When the general level of interest rates goes up, the prices of most fixed-income securities go down. When the general level of interest rates goes down, the prices of most fixed-income securities go up.

Derivatives Risk

The use of derivative instruments exposes the fund to additional risks and transaction costs. These instruments come in many varieties and have a wide range of potential risks and rewards, and may include futures contracts, options on futures contracts, options (both written and purchased), swaps, swaptions, and forward currency exchange contracts. A risk of the fund’s use of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets.

Emerging Markets Risk

The fund intends to have exposure to emerging markets. Emerging markets are riskier than more developed markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to U.S. investors. In addition, many emerging securities markets have far lower trading volumes and less liquidity than developed markets.

Foreign Securities Risk

Foreign investments often involve special risks not present in U.S. investments that can increase the chances that the fund will lose money. These risks include:

Forward and Futures Contract Risk

The successful use of forward and futures contracts draws upon the Advisor’s skill and experience with respect to such instruments and is 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 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.

High Portfolio Turnover Risk

The risk that when investing on a shorter-term basis, the fund may as a result trade more frequently and incur higher levels of brokerage fees and commissions.

Interest Rate Risk

Interest rate risk is the risk that prices of fixed income securities generally increase when interest rates decline and decrease when interest rates increase. The fund may decline in value or suffer losses if short term or long term interest rates rise sharply or otherwise change in a manner not anticipated by the Advisor.

Investment in Money Market Mutual Funds Risk

The fund invests in money market mutual funds. An investment in a money market mutual fund is not insured or guaranteed by the FDIC or any other government agency. Although such funds seek to preserve the value of the fund’s investment at $1.00 per share, it is possible to lose money by investing in a money market mutual fund.

Leverage Risk

As part of the fund’s principal investment strategy, the fund makes investments in futures contracts, forward currency contracts and other derivative instruments. The futures contracts and certain other derivatives provide the economic effect of financial leverage by creating additional investment exposure, as well as the potential for greater loss. If the fund uses leverage through activities such as borrowing, entering into short sales, purchasing securities on margin or on a “when-issued” basis or purchasing derivative instruments in an effort to increase its returns, the fund has the risk of magnified losses that occur when losses affect an asset base, enlarged by borrowings or the creation of liabilities, that exceeds the net assets of the fund. The net asset value of the fund employing leverage will be more volatile and sensitive to market movements. Leverage may involve the creation of a liability that requires the fund to pay interest.

Liquidity Risk

Certain securities may trade less frequently than those of larger companies due to their smaller capitalizations. In the event certain securities experience limited trading volumes, the prices may display abrupt or erratic movements at times. Additionally, it may be more difficult for the fund to buy and sell significant amounts of such securities without an unfavorable impact on prevailing market prices. As a result, these securities may be difficult to dispose of at a fair price at the times when the Advisor believes it is desirable to do so. The fund’s investment in securities that are less actively traded or over time experience decreased trading volume may restrict its ability to take advantage of other market opportunities or to dispose of securities. This also may affect adversely the fund’s ability to make dividend distributions. The fund will not purchase or otherwise acquire any security if, as a result, more than 15% of its net assets would be invested in illiquid investments.

Manager Risk

If the fund’s portfolio managers make poor investment decisions, it will negatively affect the fund’s investment performance.

Market Risk

Market risk is the risk that the markets on which the fund’s investments trade will increase or decrease in value. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. If there is a general decline in the securities and other markets, your investment in the fund may lose value, regardless of the individual results of the securities and other instruments in which the fund invests.

Model and Data Risk

Given the complexity of the investments and strategies of the fund, the Advisor relies heavily on quantitative models (both proprietary models developed by the Advisor, and those supplied by third party vendors) and information and data supplied by third party vendors (“Models and Data”). Models and Data are used to construct sets of transactions and investments and to provide risk management insights.

When Models and Data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the fund to potential risks. The success of relying on such models may depend on the accuracy and reliability of historical data supplied by third party vendors.

All models rely on correct market data inputs. If incorrect market data is entered into even a well-founded model, the resulting information will be incorrect. However, even if market data is input correctly, “model prices” will often differ substantially from market prices, especially for securities with complex characteristics, such as derivative securities.

Momentum Style Risk

Investing in momentum entails establishing long positions in securities that have had positive recent returns, and short positions in securities that have had negative recent returns. These securities may be more volatile than a broad cross-section of securities. In addition, there may be periods when the momentum style is out of favor, and during which the investment performance of a fund using a momentum strategy may suffer.

New Fund Risk

The fund is newly-formed. Accordingly, investors in the fund bear the risk that the fund may not be successful in implementing its investment strategy, and may not employ a successful investment strategy, any of which could result in the fund being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such a liquidation could have negative tax consequences for shareholders.

Non-Diversified Status Risk

The fund is a non-diversified fund. Because the fund may invest in securities of a smaller number of issuers, the fund may be more exposed to the risks associated with and developments affecting an individual issuer than a fund that invests more widely, which may, therefore, have a greater impact on the fund’s performance.

Short Sale Risk

The fund may take a short position in a derivative instrument, such as a future, forward or swap. A short position on a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying instrument. The fund may also from time to time sell securities short, which involves borrowing and selling a security and covering such borrowed security through a later purchase. A short sale creates the risk of an unlimited loss, in that the price of the underlying security could theoretically increase without limit, thus increasing the cost of buying those securities to cover the short position. There can be no assurance that the securities necessary to cover a short position will be available for purchase. The fund must set aside “cover” for short sales to comply with applicable SEC positions under the Investment Company Act of 1940, as amended (“1940 Act”).

Small- and Mid-Capitalization Securities Risk

The fund may invest its assets in the common stocks and other equity securities of small and mid-capitalization companies with smaller market capitalizations. While the Advisor believes these investments may provide significant potential for appreciation, they involve higher risks in some respects than do investments in common stocks and other equity securities of larger companies. For example, prices of such investments are often more volatile than prices of large-capitalization stocks and other equity securities. In addition, due to thin trading in some such investments, an investment in these common stocks and other equity securities may be more illiquid than that of common stocks or other equity securities of larger market capitalization issuers (See “Liquidity Risk”). Smaller capitalization companies also fail more often than larger companies and may have more limited management and financial resources than larger companies.

Sovereign Debt Risk

These investments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. If a governmental entity defaults, it may ask for more time in which to pay or for further loans. There is no legal process for collecting sovereign debt that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected.

Subsidiary Risk

By investing in the Subsidiary, the fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The commodity-related instruments held by the Subsidiary are generally similar to those that are permitted to be held by the fund and are subject to the same risks that apply to similar investments if held directly by the fund (see “Commodities Risk” above). There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the 1940 Act, and, unless otherwise noted in this prospectus, is not subject to all the investor protections of the 1940 Act. However, the fund wholly owns and controls the Subsidiary, and the fund and the Subsidiary are both managed by the Advisor, making it unlikely that the Subsidiary will take action contrary to the interests of the fund and its shareholders. The Board has oversight responsibility for the investment activities of the fund, including its investment in the Subsidiary, and the fund’s role as sole shareholder of the Subsidiary. To the extent applicable to the investment activities of the Subsidiary, the Subsidiary will be subject to the same investment restrictions and limitations, and follow the same compliance policies and procedures, as the fund. 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 the SAI and could adversely affect the fund, including resulting in its orderly winding-up.

Swap Agreements Risk

Swap agreements involve the risk that the party with whom a fund has entered into the swap will default on its obligation to pay the fund and the risk that the fund will not be able to meet its obligations to pay the other party to the agreement.

Tax Risk

In order for the fund to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), the fund must derive at least 90 percent of its gross income each taxable year from qualifying income, which is described in more detail in the SAI. Income from certain commodity-linked derivative instruments in which the fund invests is not considered qualifying income. The fund will therefore attempt to restrict its income from commodity-linked derivative instruments that do not generate qualifying income to a maximum of 10 percent of its gross income.

The fund’s investment in the Subsidiary is expected to provide the fund with exposure to the commodities markets within the limitations of the federal tax requirements of Subchapter M. The annual net profit, if any, realized by the Subsidiary and imputed for income tax purposes to the fund will constitute “qualifying income” for purposes of the fund remaining qualified as a regulated investment company for U.S. federal income tax purposes.

Tax Law Change Risk

Although the Internal Revenue Service (“IRS”) has issued published guidance that qualifying income for a regulated investment company does not include income derived directly from certain commodity-linked derivative instruments, the IRS has indicated in a series of private letter rulings that income derived from a wholly-owned offshore subsidiary such as the Subsidiary that invests in such commodity-linked derivative instruments does constitute qualifying income. The fund has not applied for such a private letter ruling, but relies upon an opinion of counsel based on customary representations that income derived from the Subsidiary should be treated as qualifying income. In July 2011, the IRS suspended further issuance of these private letter rulings, indicating that it was reconsidering the underlying policies. The IRS subsequently indicated informally that it intends to issue public guidance regarding the use of offshore subsidiaries by regulated investment companies to invest indirectly in commodities and that such guidance will be prospective in application and provide for transition periods for affected funds. It is also possible that legislation on this issue could be introduced. If the IRS does issue public guidance, or if legislation is enacted, that results in an adverse determination relating to the treatment of income derived by the fund from the Subsidiary, the fund would likely need to significantly change its investment strategy, which could adversely affect the fund. It is possible that the fund may be unable to qualify as a regulated investment company for one or more years, meaning that all of its income and gains could be taxed first at the fund level and again when paid out to shareholders.

Volatility Risk

The fund may have investments that appreciate or decrease significantly in value over short periods of time. This may cause the fund’s net asset value per share to experience significant appreciations or decreases in value over short periods of time.

U.S. Government Security Risks

Treasury obligations may differ in their interest rates, maturities, times of issuance and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so. Certain of the government agency securities the fund may purchase are backed only by the credit of the government agency and not by full faith and credit of the United States.

Definition of Terms

The 60/40 Index represents an allocation of 60% MSCI AC World Index (Equities), 40% Barclays Aggregate Bond Index (Bonds) – formerly the Lehman Aggregate Bond Index through Nov. 2008. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The Barclays Capital U.S. Aggregate Bond Index is a composite comprised of the Barclays Capital U.S. Intermediate Government/Credit Index and the Barclay Capital Mortgage-Backed Securities Index. All issues in the index are rated investment grade or higher, have a least one year to maturity, and have an outstanding par value of at least $100 million. Note that the fund’s allocation may differ substantially from 60% equities and 40% bonds. Since inception returns for the index are shown from the Class I inception date.

Correlation is a statistical measure of how two securities move in relation to each other.

Standard deviation measures the degree to which a fund’s return varies from its previous returns or from the average of all similar funds.

Volatility is a statistical measure of the dispersion of returns for a given security or market index.