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Salient Adaptive US Equity Fund

Daily NAV

Updated: 5/26/17

Symbol
ASMCX
NAV
$37.51
Change
$0.03
Inception Date
Aug 24, 1992
Net Assets (All Classes)
$18.1 M
Overview

Overview

The strategy seeks to outperform the U.S. equity market (S&P 500 Index) using a top-down approach to portfolio construction by allocating to sectors or industries that are exhibiting the highest level of total return and/or attractive valuations and aims to maintain a constant level of portfolio risk in all market environments.

Three Things to Know

  • The strategy’s combination of risk management and active sector positioning may complement or make an excellent replacement for traditional U.S. equity mandates
  • The combination of a repeatable methodology for sector rotation and the power of risk targeting results in a portfolio that will adapt to changing market conditions
  • The portfolio is designed within a rigorous, disciplined, systematic framework in which decisions are based on evidence not emotions

Process

Objective: The fund seeks capital growth

  • The fund uses value and momentum signals to select equity sectors and industries, aiming to add excess return by choosing those sectors or industries that are expected to perform better than the S&P 500.
  • The team forecasts volatility and correlation using a methodology executed across all of Salient’s quantitative strategies, with the aim of maintaining a constant level of volatility similar to the long-run volatility of the S&P 500. The constant level of volatility is expected to add excess return by increasing overall portfolio risk during periods of low market risk and reducing overall portfolio risk in periods of high market risk.

Prior to May 1, 2016, Salient Adaptive US Equity Fund was named Forward Total MarketPlus 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

Travis Robinson, CFA

Assistant Portfolio Manager
Houston

Xuan Huan

Senior Quantitative 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 (%)

  Apr'171 Q12 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV 1.38 2.86 2.86 9.75 7.06 11.16 5.32 9.57
Investor NAV 1.37 2.78 2.78 9.31 6.66 10.75 4.88 5.63
S&P 500 Index 1.03 6.07 6.07 17.17 10.37 13.30 7.51
Russell 3000 Index 1.06 5.74 5.74 18.07 9.76 13.18 7.54

1. As of 04/30/2017
2. As of 03/31/2017

Returns for periods greater than one year are annualized.

Performance figures and other portfolio data shown for periods prior to September 20, 2010, do not reflect the current manager’s performance or strategy.

Effective January 4, 2016, the principal investment strategies and benchmark of Forward Total MarketPlus Fund were changed. Prior to January 4, 2016, the fund’s benchmark was Russell 3000 Index.

The fund’s investment advisor is contractually obligated to waive a portion of its fees and reimburse other expenses until April 30, 2017, in amounts necessary to limit the fund’s operating expenses (exclusive of brokerage costs, interest, taxes, dividends, acquired fund fees and expenses, and extraordinary expenses) for the fund’s Investor Class and Institutional Class shares to an annual rate (as a percentage of the fund’s average daily net assets) of 1.25% and 0.85%, respectively. This expense limitation arrangement may not be terminated by the fund’s investment advisor prior to such date under any circumstances.

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
Institutional9.87-0.8911.5531.3316.16-4.9425.1332.90-40.33-2.90
Investor9.41-1.2411.1430.8815.72-5.3724.6032.32-40.63-3.35
S&P 500 Index11.961.3813.6932.3916.002.1115.0626.46-37.005.49
Russell 3000 Index12.740.4812.5633.55

Growth of $10,000*** as of 03/31/2017

*** 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.

Expense Ratio as of 05/01/2017

  Gross Net Cap
Investor 1.89% 1.37% 1.25%
Institutional 1.44% 0.92% 0.80%
Portfolio

Sector Allocation (%) as of 03/31/2017

A Exchange-Traded Funds 76.10
B Futures Contracts 23.90

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

Fund Details as of 03/31/2017

Annual Portfolio turnover 359%

Risk Characteristics as of 03/31/2017

Beta 1.05
Correlation 0.85
Standard Deviation 17.59
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Rate
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 12/23/2016 $0.492 12/27/2016
Investor Income Dividend 12/23/2016 $0.347 12/27/2016
Income Dividend 12/23/2016 $0.525 12/27/2016
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 US Equity 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.

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.

Beta is a measure of risk which shows a fund’s volatility relative to its benchmark index.

Correlation is a statistical measure of the interdependence of two random variables that range in value from -1 to +1, indicating perfect negative correlation at -1, absence of correlation at zero and perfect positive correlation at +1.

S&P 500 Index is an unmanaged index of 500 common stocks chosen to reflect the industries in the U.S. economy.

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

Valuation is the process of determining the value of an asset or company based on earnings and the market value of assets.

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

Prior to May 1, 2016, Salient Adaptive US Equity Fund was named Forward Total MarketPlus Fund.