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Salient EM Infrastructure Fund

Daily NAV

Updated: 2/16/18

Symbol
KGIYX
NAV
$23.15
Change
$-0.04
Inception Date
Jun 29, 2007
Net Assets (All Classes)
$25.4 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

Investment Analyst
San Francisco

Performance

Performance (%)

  Jan'181 Q42 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV 3.86 3.00 17.38 17.38 3.78 4.57 0.99 1.80
Investor NAV 3.81 2.93 16.92 16.92 3.39 4.19 2.57
Class A NAV* 3.84 2.94 16.92 16.92 3.30 4.13 0.63 1.44
Class A MOP** -2.14 -3.00 10.18 10.18 1.28 2.90 0.03 0.86
Class C NAV† 3.77 2.80 16.26 16.26 2.75 3.55 -0.02 0.78
Class C MOP‡ 2.77 1.80 15.26 15.26 2.75 3.55 -0.02 0.78
MSCI Emerging Markets Index 8.34 7.50 37.75 37.75 9.50 4.73 2.02
MSCI EM Infrastructure Capped Index 4.22 1.81 23.32 23.32 2.92 2.48 0.96

1. As of 01/31/2018
2. As of 12/31/2017

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 (%)

  2017201620152014201320122011201020092008
Institutional17.381.53-6.220.1711.6914.95-5.928.5029.84-42.05
Investor16.921.20-6.60-0.1711.3114.48
Class A16.921.11-6.75-3.0611.2614.57-8.958.2929.53-42.28
Class C16.260.57-7.24-1.2410.6013.78-7.367.5128.54-42.76
MSCI Emerging Markets Index37.7511.60-14.60-1.82-2.2718.63-18.1719.2079.02-53.18
MSCI EM Infrastructure Capped Index23.327.22-17.551.891.7418.28-9.9317.1452.84-48.95

Growth of $10,000*** as of 12/31/2017

*** 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.

Yield as of 12/31/2017

Class A DIVIDEND YIELD 5.57
Class A 30-DAY SEC YIELD (%) 1.81
Class A 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 1.16
Class C DIVIDEND YIELD 5.05
Class C 30-DAY SEC YIELD (%) 1.39
Class C 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 0.71
Institutional DIVIDEND YIELD 5.91
Institutional 30-DAY SEC YIELD (%) 2.32
Institutional 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 1.63
Investor DIVIDEND YIELD 5.63
Investor 30-DAY SEC YIELD (%) 1.97
Investor 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 1.29

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 12/31/2017

A SITC International Holdings Co., Ltd. 5.40
B ENN Energy Holdings, Ltd. 4.76
C Cia De Saneamento Do Parana 4.46
D Yuexiu Transport Infrastructure, Ltd. 4.46
E CCR SA 4.35
F Grupo Aeroportuario del Centro Norte SAB de CV 4.32
G Promotora y Operadora de Infraestructura SAB de CV 3.29
H Tenaga Nasional Bhd 3.26
I PLA Administradora Industrial S de RL de CV 3.25
J HKBN, Ltd. 3.15

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

Regional Allocation (%) as of 12/31/2017

A Asia ex-Japan 60.06
B South America 19.64
C Latin America 11.91
D Europe ex-UK 8.39

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 12/31/2017

A Highways & Railtracks 16.42
B Transportation Infrastructure 14.07
C Water Utilities 13.01
D Electric Utilities 12.49
E Other 12.00
F Gas Utilities 8.43
G Oil, Gas & Consumable Fuels 6.95
H Diversified Telecommunication 5.64
I Marine 5.60
J Construction & Engineering 5.39

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 12/31/2017

Annual Portfolio turnover 105%
# of holdings 39

Risk Characteristics as of 12/31/2017

Beta 0.71
Correlation 0.92
Standard Deviation 17.81
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Per Share ($)
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 12/22/2017 0.47000 12/26/2017
Institutional Income Dividend 09/25/2017 0.19700 09/26/2017
Institutional Income Dividend 06/26/2017 0.42700 06/27/2017
Institutional Income Dividend 03/27/2017 0.26800 03/28/2017
Investor Income Dividend 12/22/2017 0.44400 12/26/2017
Investor Income Dividend 09/25/2017 0.17800 09/26/2017
Investor Income Dividend 06/26/2017 0.42000 06/27/2017
Investor Income Dividend 03/27/2017 0.25800 03/28/2017
Class A Income Dividend 12/22/2017 0.44100 12/26/2017
Class A Income Dividend 09/25/2017 0.17500 09/26/2017
Class A Income Dividend 06/26/2017 0.41600 06/27/2017
Class A Income Dividend 03/27/2017 0.24500 03/28/2017
Class C Income Dividend 12/22/2017 0.40700 12/26/2017
Class C Income Dividend 09/25/2017 0.14300 09/26/2017
Class C Income Dividend 06/26/2017 0.38500 06/27/2017
Class C Income Dividend 03/27/2017 0.21700 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.

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.

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. 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.

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.

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.

MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.

MSCI Emerging Markets Infrastructure Capped Index aims to capture the opportunity set of listed companies that are owners or operators of infrastructure assets. The index’s sector weights are capped at one-third for telecommunication infrastructure, one-third for utilities infrastructure and one-third for energy, transportation and social infrastructure combined.

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.