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Salient Adaptive Income Fund

Daily NAV

Updated: 12/8/17

Symbol
AIAAX
NAV
$13.88
Change
$0.04
Inception Date
Dec 27, 2000
Net Assets (All Classes)
$12.6 M
Overview

Overview

The fund employs a dynamic, risk-managed approach which seeks to provide income to investors with a lower risk tolerance by allocating the fund’s investments to income-producing assets that are exhibiting a statistically higher yield relative to other income-producing assets.

Three Things to Know

  • Multi-asset, income-oriented strategy designed to optimize yield subject to a target volatility range
  • Invests across a diverse range of nontraditional mutual funds, exchange-traded funds, exchange-traded notes, futures and other derivatives to provide a broad opportunity set for managing risk and reward
  • Salient’s seasoned quantitative asset allocation team dynamically adjusts the portfolio’s mix of strategies on a weekly basis to adapt to fluctuating risks and global market conditions

Process

Objective: The fund seeks high current income and some stability of principal.

  • Utilizes a dynamic, systematic asset allocation process based on asset class yield relative to the 10-Year Treasury
  • Portfolio is optimized on a weekly basis to target a portfolio volatility range around 6.5% while ensuring that the portfolio is properly diversified by limiting single asset class exposure to 25% of the fund
Team

Roberto Croce, Ph.D.

Managing Director, Quantitative Strategies
Houston

Nathan J. Rowader

Senior Portfolio Manager
San Francisco

Nicholas Millikan, CAIA, CFA

Director, Head of Investment Strategy
San Francisco

Xuan Huan

Senior Analyst
Houston

Scott Chun

Analyst
San Francisco


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

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

Performance

Performance (%)

  Nov'171 Q32 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV 0.08 2.95 7.21 5.86 2.05 3.97 4.85 4.57
Investor NAV 0.11 2.75 6.79 5.36 1.54 3.45 4.33 4.05
Class A NAV* 0.06 2.89 6.96 5.61 1.80 3.71 4.59 4.11
Class A MOP*** -3.70 -0.99 2.93 1.68 0.50 2.92 4.19 3.83
Class C NAV† 0.07 2.72 6.40 4.88 1.05 2.94 3.82 3.36
Class C MOP‡ -0.93 1.72 5.40 3.88 1.05 2.94 3.82 3.36
85% Barclays Global Aggregate Bond Index/15% MSCI ACWI 1.24 2.29 7.92 1.62 2.36 2.03 3.64

1. As of 11/30/2017
2. As of 09/30/2017

Returns for periods greater than one year are annualized.
* Excludes sales charge.
** Reflects effects of the fund’s maximum sales charge of 3.75%.
† Excludes the effects of the 1% contingent deferred sales charge.
‡ Includes the effects of the 1% contingent deferred sales charge.

The performance quoted represents past performance, does not guarantee future results and current performance may be lower or higher than the data quoted. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance data current to the most recent month end may be obtained on this website. Investment performance reflects fee waivers in effect. In the absence of fee waivers, total return would be lower. Total return is based on NAV, assuming reinvestment of all distributions. Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Calendar Year Performance (%)

  2016201520142013201220112010200920082007
Institutional6.92-7.274.835.3411.595.797.0115.55-6.793.16
Investor6.39-7.764.344.8011.045.266.4814.99-7.202.58
Class A6.73-7.522.625.1011.253.616.7515.35-7.032.88
Class C5.88-8.183.394.2810.454.265.9714.38-7.682.07
85% Barclays Global Aggregate Bond Index/15% MSCI ACWI3.11-2.851.230.986.21

Growth of $10,000*** as of 09/30/2017

*** This chart illustrates the performance of a hypothetical $10,000 investment made in the fund on the commencement of its operations and assumes no additional deposits or withdrawals were made to the fund and assumes reinvestment of dividends and capital gains. This chart is not intended to imply any future performance of the fund. The chart does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Yield as of 11/30/2017

Investor DIVIDEND YIELD 2.90
Investor 30-DAY SEC YIELD (%) 4.17
Investor 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 3.08
Institutional DIVIDEND YIELD 3.31
Institutional 30-DAY SEC YIELD (%) 4.30
Institutional 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 3.20
Class A DIVIDEND YIELD 3.11
Class A 30-DAY SEC YIELD (%) 4.24
Class A 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 3.19
Class C DIVIDEND YIELD 2.50
Class C 30-DAY SEC YIELD (%) 3.70
Class C 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 2.61

Past performance does not guarantee future results.

Expense Ratio as of 05/01/2017

  Gross Net
Investor 3.21% 1.94%
Institutional 2.71% 1.44%
Class A 2.96% 1.69%
Class C 3.71% 2.44%

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 0.51% for Investor Class, 0.01% for Institutional Class, 0.26% for Class A and 1.01% for Class C shares, excluding certain expenses, such as taxes, brokerage commissions, interest, short dividend expense, any acquired fund fees and expenses, litigation and extraordinary expenses. This expense limitation agreement expires on April 30, 2018, 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.

Portfolio

Asset Allocation (%) as of 09/30/2017

A iShares® Emerging Markets HYB ETF 20.42
B Select Income 19.82
C International Dividend Signal 15.36
D iShares iBoxx $ Hi Yield Corp. Bond ETF 14.91
E Tactical Muni & Credit 14.09
F International Real Estate 10.42
G iShares® MSCI Emerging Markets ETF 4.98

These allocations may not reflect the current or future positions in the portfolio. Percentages may not add to 100% due to rounding.

Following the closure of the Salient High Yield, Salient EM Corporate Debt and Salient EM Dividend funds the Salient Adaptive Income Fund shifted its allocations to those specific asset classes into ETFs to maintain exposure. We have updated the allocation table to reflect this change.

Fund Details as of 09/30/2017

Annual Portfolio turnover 127%
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Rate
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 11/27/2017 $0.021 11/28/2017
Institutional Income Dividend 10/26/2017 $0.022 10/27/2017
Institutional Income Dividend 09/26/2017 $0.092 09/27/2017
Institutional Income Dividend 08/28/2017 $0.021 08/29/2017
Institutional Income Dividend 07/26/2017 $0.025 07/27/2017
Institutional Income Dividend 06/27/2017 $0.115 06/28/2017
Institutional Income Dividend 05/25/2017 $0.028 05/26/2017
Institutional Income Dividend 04/25/2017 $0.027 04/26/2017
Institutional Income Dividend 03/28/2017 $0.094 03/29/2017
Institutional Income Dividend 01/26/2017 $0.014 01/27/2017
Investor Income Dividend 11/27/2017 $0.015 11/28/2017
Investor Income Dividend 10/26/2017 $0.016 10/27/2017
Investor Income Dividend 09/26/2017 $0.086 09/27/2017
Investor Income Dividend 08/28/2017 $0.015 08/29/2017
Investor Income Dividend 07/26/2017 $0.020 07/27/2017
Investor Income Dividend 06/27/2017 $0.109 06/28/2017
Investor Income Dividend 05/25/2017 $0.022 05/26/2017
Investor Income Dividend 04/25/2017 $0.022 04/26/2017
Investor Income Dividend 03/28/2017 $0.086 03/29/2017
Investor Income Dividend 01/26/2017 $0.010 01/27/2017
Class A Income Dividend 11/27/2017 $0.018 11/28/2017
Class A Income Dividend 10/26/2017 $0.019 10/27/2017
Class A Income Dividend 09/26/2017 $0.089 09/27/2017
Class A Income Dividend 08/28/2017 $0.018 08/29/2017
Class A Income Dividend 07/26/2017 $0.023 07/27/2017
Class A Income Dividend 06/27/2017 $0.112 06/28/2017
Class A Income Dividend 05/25/2017 $0.025 05/26/2017
Class A Income Dividend 04/25/2017 $0.024 04/26/2017
Class A Income Dividend 03/28/2017 $0.090 03/29/2017
Class A Income Dividend 01/26/2017 $0.012 01/27/2017
Class C Income Dividend 11/27/2017 $0.009 11/28/2017
Class C Income Dividend 10/26/2017 $0.010 10/27/2017
Class C Income Dividend 09/26/2017 $0.081 09/27/2017
Class C Income Dividend 08/28/2017 $0.009 08/29/2017
Class C Income Dividend 07/26/2017 $0.015 07/27/2017
Class C Income Dividend 06/27/2017 $0.103 06/28/2017
Class C Income Dividend 05/25/2017 $0.016 05/26/2017
Class C Income Dividend 04/25/2017 $0.017 04/26/2017
Class C Income Dividend 03/28/2017 $0.080 03/29/2017
Class C Income Dividend 01/26/2017 $0.005 01/27/2017
Related Resources

You should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. A prospectus with this and other information may be obtained by calling (800) 999-6809 or by downloading one from this website. It should be read carefully before investing.

Click here for fund-specific risks and definitions.

Fund Specific Risks

Salient Adaptive Income Fund

RISKS

There are risks involved with investing, including loss of principal. Past performance does not guarantee future results, share prices will fluctuate and you may have a gain or loss when you redeem shares.

Each allocation fund is a fund of funds that primarily invests in a mix of underlying Salient Funds and related mutual funds. Shareholders of an allocation fund indirectly bear the expenses of the underlying funds. An allocation fund’s allocations may be changed at any time. Asset allocation does not assure profit or protect against risk.

Borrowing for investment purposes creates leverage, which can increase the risk and volatility of a fund.

Debt securities are subject to interest rate risk. If interest rates increase, the value of debt securities generally declines. Debt securities with longer durations tend to be more sensitive to changes in interest rates and more volatile than securities with shorter durations.

Derivative instruments involve risks different from those associated with investing directly in securities and may cause, among other things, increased volatility and transaction costs or a fund to lose more than the amount invested.

Investing in exchange-traded funds (ETFs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETFs.

Investing in exchange-traded notes (ETNs) will subject a fund to substantially the same risks as those associated with the direct ownership of the securities or other property held by the ETNs.

Foreign securities, especially emerging or frontier markets, will involve additional risks including exchange rate fluctuations, social and political instability, less liquidity, greater volatility and less regulation.

Investing in lower-rated (“high yield”) debt securities involves special risks in addition to those associated with investments in higher-rated debt securities, including a high degree of credit risk.

Mortgage and asset-backed securities are debt instruments that are secured by interests in pools of mortgage loans or other financial instruments. Mortgage-backed securities are subject to, among other things, prepayment and extension risks.

Investing in the real estate industry or in real estate-related securities involves the risks associated with direct ownership of real estate which include, among other things, changes in economic conditions (e.g., interest rates), the macro real estate development market, government intervention (e.g., property taxes) or environmental disasters. These risks may also affect the value of equities that service the real estate sector.

Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund.

Investing in smaller companies generally will present greater investment risks, including greater price volatility, greater sensitivity to changing economic conditions and less liquidity than investing in larger, more mature companies.

Diversification does not assure profit or protect against risk.

Actual allocation represents the fund’s allocation in the underlying Salient Funds as of the date of this report. The fund’s current actual allocations may differ from the allocations described in the prospectus due to market fluctuations and other factors. Forward Management has the discretion to change the fund’s allocations.

The number of issues represents the issues held by the underlying Salient Funds. The holdings of the underlying funds may overlap or be substantially similar, and thus the number of issues shown does not represent the overall diversification of the allocation fund.

10-Year U.S. Treasury bond is a debt obligation issued by the U.S. Treasury that has a term of more than one year, but not more than 10 years.

30-Day SEC Yield is a standardized calculation adopted by the SEC based on a 30-day period that helps investors compare funds using a consistent method of calculating yield.

30-Day Unsubsidized SEC Yield is a standardized calculation adopted by the SEC based on a 30-day period that helps investors compare funds using a consistent method of calculating yield. It excludes expense waivers and reimbursements.

Adaptive Income Blended Index is a hypothetical index constructed by Forward Management, which consists of 85% Bloomberg Barclays Global Aggregate Index and 15% MSCI ACWI.

Barclays Global Aggregate Bond Index provides a broad-base measure of the global investment grade fixed-rate debt markets.

MSCI ACWI (All Country World Index) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets.

One cannot invest directly in an index.

Valuation is the process of determining the current worth of an asset or company.

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

One cannot invest directly in an index.

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

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