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Salient EM Infrastructure Fund

Daily NAV

Updated: 8/18/17

Symbol
KGIYX
NAV
$22.9
Change
$0.10
Inception Date
Jun 29, 2007
Net Assets (All Classes)
$37.8 M
Overview

Overview

The fund invests in the physical structures and networks that provide necessary services to society, such as transportation and communications networks, utilities, energy storage, transportation and public service facilities. The fund targets companies with attractive absolute valuations believed to be poised to benefit from expected infrastructure spending trends.

Three Things to Know

  • The all-cap, broadly-focused fund provides unparalleled access to undiscovered opportunities in emerging market (EM) and frontier market (FM) infrastructure
  • The fund’s EM- and FM-focused infrastructure investment opportunity set potentially benefits investors by providing increased diversification and exposure that is available only in a few vehicles
  • Unlike most infrastructure funds and indexes that are heavily weighted in utilities and developed markets, our pure EM infrastructure approach allows for a broader opportunity set to find companies trading at compelling valuations

Process

Objective: The fund seeks total return through capital appreciation and current income.

  • A rigorous, repeatable, bottom-up investment approach
  • Incorporates both quantitative and qualitative analyses of companies with the most risk-adjusted appreciation potential
  • In an effort to dampen individual country and project risks, the investment team broadly diversifies the fund across industries and countries

Team

David L. Ruff, CFA

Managing Director & Senior Portfolio Manager
San Francisco

Randall T. Coleman, CFA

Portfolio Manager
San Francisco

Bruce R. Brewington

Portfolio Manager
San Francisco

Eric Sagmeister

Portfolio Manager
San Francisco

Paul Broughton, CFA

Portfolio Manager
San Francisco

Aaron Visse, CFA

Portfolio Manager
San Francisco

Hwee-See Teng

Analyst
San Francisco

Performance

Performance (%)

  Jul'171 Q22 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV 3.64 -0.52 10.21 5.96 -1.17 5.41 1.25 1.25
Investor NAV 3.63 -0.64 9.90 5.52 -1.57 5.01 1.76
Class A NAV* 3.61 -0.62 9.98 5.49 -1.62 4.97 0.89 0.89
Class A MOP** -2.34 -6.35 3.64 -0.58 -3.55 3.73 0.29 0.29
Class C NAV† 3.54 -0.76 9.65 4.92 -2.16 4.37 0.23 0.23
Class C MOP‡ 2.54 -1.73 8.65 3.92 -2.16 4.37 0.23 0.23
S&P Global Infrastructure Index 3.33 5.95 14.37 12.71 3.50 9.67 3.79
MSCI Emerging Markets Index 6.04 6.38 18.60 24.17 1.44 4.33 2.25

1. As of 07/31/2017
2. As of 06/30/2017

On March 29, 2017, Advisor Class shares were closed and outstanding shares were exchanged for Institutional Class shares.

Returns for periods greater than one year are annualized.

* Excludes sales charge.
** Reflects effects of the fund’s maximum sales charge of 5.75%.
† 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 (%)

  201620152014201320122011201020092008
Institutional1.53-6.220.1711.6914.95-5.928.5029.84-42.05
Investor1.20-6.60-0.1711.3114.48
Class A1.11-6.75-3.0611.2614.57-8.958.2929.53-42.28
Class C0.57-7.24-1.2410.6013.78-7.367.5128.54-42.76
S&P Global Infrastructure Index12.43-11.4612.9814.9911.89-0.395.7725.28-38.98
MSCI Emerging Markets Index11.60-14.60-1.82-2.2718.63-18.1719.2079.02-53.18

Growth of $10,000*** as of 06/30/2017

*** 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 07/31/2017

Class A DIVIDEND YIELD 3.40
Class A 30-DAY SEC YIELD (%) 2.35
Class A 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 1.89
Class C DIVIDEND YIELD 3.00
Class C 30-DAY SEC YIELD (%) 1.90
Class C 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 1.42
Institutional DIVIDEND YIELD 3.74
Institutional 30-DAY SEC YIELD (%) 2.79
Institutional 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 2.30
Investor DIVIDEND YIELD 3.52
Investor 30-DAY SEC YIELD (%) 2.49
Investor 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 2.00

Past performance does not guarantee future results.

Expense Ratio as of 05/01/2017

  Gross Net
Class A 2.32% 1.60%
Class C 2.87% 2.15%
Institutional 1.92% 1.20%
Investor 2.27% 1.55%

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 Investor Class, 1.20% for Institutional Class, 1.60% for Class A and 2.15% 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

Top 10 Holdings (% of Net Assets) as of 06/30/2017

A SITC International Holdings Co., Ltd. 4.18
B Grupo Aeroportuario del Centro Norte SAB de CV 4.13
C Yuexiu Transport Infrastructure, Ltd. 3.81
D CCR SA 3.51
E Korea Electric Power Corp. 3.39
F Tenaga Nasional Bhd 3.23
G Jiangsu Expressway Co., Ltd. 3.18
H ENN Energy Holdings, Ltd. 3.09
I Cia De Saneamento Do Parana 3.07
J HKBN, Ltd. 3.00

These holdings may not reflect the current or future positions in the portfolio.

Regional Allocation (%) as of 06/30/2017

A Asia ex-Japan 57.78
B South America 18.85
C Latin America 12.56
D Europe ex-UK 10.81

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

Industry Allocation (%) as of 06/30/2017

A Other 20.79
B Electric Utilities 16.54
C Transportation Infrastructure 13.90
D Highways & Railtracks 12.80
E Water Utilities 10.10
F Oil, Gas & Consumable Fuels 8.11
G Gas Utilities 7.33
H Construction & Engineering 5.46
I Diversified Telecommunication 4.97

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 06/30/2017

Annual Portfolio turnover 105%
# of holdings 51

Risk Characteristics as of 06/30/2017

Beta 0.71
Correlation 0.92
Standard Deviation 18.20
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Rate
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 06/26/2017 $0.427 06/27/2017
Institutional Income Dividend 03/27/2017 $0.268 03/28/2017
Investor Income Dividend 06/26/2017 $0.420 06/27/2017
Investor Income Dividend 03/27/2017 $0.258 03/28/2017
Class A Income Dividend 06/26/2017 $0.416 06/27/2017
Class A Income Dividend 03/27/2017 $0.245 03/28/2017
Class C Income Dividend 06/26/2017 $0.385 06/27/2017
Class C Income Dividend 03/27/2017 $0.217 03/28/2017
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 EM Infrastructure 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.

Concentration in a particular industry will involve a greater degree of risk than a more diversified portfolio.

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.

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.

30-Day SEC Yield is based on a 30-day period and is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period.

30-Day Unsubsidized SEC Yield is computed by dividing the net investment income per share earned during the period, excluding expense waivers or reimbursements, by the maximum offering price per share on the last day of the period.

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

Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g., depreciation) and interest expense to pretax income.

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 Global Infrastructure Index provides liquid and tradable exposure to 75 companies from around the world that represent the listed infrastructure universe. The index has balanced weights across three distinct infrastructure clusters: utilities, transportation and energy.

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.

One cannot invest directly in an index.

Advisor Class shares are available only to fee-based advisory platforms and retirement plans via omnibus accounts.

Performance figures and other portfolio data shown for periods prior to June 15, 2009, do not reflect the current manager’s performance or strategy.

David L. Ruff and Eric Sagmeister are registered representatives of ALPS Distributors, Inc.

David L. Ruff, Randall T. Coleman and Aaron Visse have earned the right to use the Chartered Financial Analyst designation. CFA Institute marks are trademarks owned by the CFA Institute.