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Salient Frontier Strategy Fund

Daily NAV

Updated: 7/28/16

Symbol
FRNMX
NAV
$7.52
Change
$0.00
Inception Date
Dec 31, 2008
Net Assets (All Classes)
$8.06 M
Overview

Overview

The fund provides broad exposure to some of the fastest-growing economies around the world—the newest engines of economic growth. The strategy closely tracks the MSCI Frontier Markets Index, which helps to keep costs low, minimize operational risks and maximize access to liquidity.

Three Things to Know

  • Frontier markets offer rapid growth potential, attractive valuations and portfolio diversification
  • The strategy aims to capitalize on the growth and potential of frontier markets, dampen risks and provide broad exposure in a simple, low-cost way
  • The economic diversity of frontier economies results in lower correlations to more developed markets, such as the U.S., as well as to each other

Process

Objective: The fund seeks capital growth.

  • The fund tracks the broad index with the goal of addressing the “three Cs” (cost, complexity and capacity) while minimizing tracking error.
  • The fund uses total return swaps—an agreement whereby we receive the return stream from the index without actually owning the component securities—to increase portfolio efficiency while lowering trading costs
  • The portfolio is weighted based on market capitalization, which increases exposure to more liquid names relative to thinly traded securities
  • Keeping all holdings and transactions in U.S. dollars helps minimize cost

Prior to May 1, 2016, Salient Frontier Strategy Fund was named Forward Frontier Strategy Fund.

Team

Portfolio Management Team

Roberto Croce, Ph.D.

Director of Quantitative Research
Houston

Nathan J. Rowader

Senior Portfolio Manager
San Francisco

Lee Partridge, CAIA, CFA

Chief Investment Officer & Managing Director
Houston

Nicholas Millikan, CAIA, CFA

Client Portfolio Manager
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 (%)

  Jun'161 Q22 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV -3.36 -0.27 -1.71 -18.97 -3.39 -2.30 0.56
Investor NAV -3.53 -0.39 -1.92 -19.18 -3.59 -2.53 0.37
Advisor NAV -3.42 -0.26 -1.68 -18.86 -3.32 -2.25 -3.30
MSCI Frontier Markets Index -3.44 0.63 -0.13 -11.69 1.40 1.84

1. As of 06/30/2016
2. As of 06/30/2016

Returns for periods greater than one year are annualized.

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 Investor Class, Institutional Class and Advisor Class shares to an annual rate (as a percentage of the fund’s average daily net assets) of 1.29%, 0.99% and 0.99%, 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 (%)

  2015201420132012201120102009
Institutional-20.803.1422.946.15-20.1621.112.89
Investor-21.013.0722.645.98-20.4020.763.03
Advisor-20.793.3222.936.16
MSCI Frontier Markets Index-14.077.2126.329.25-18.3824.2411.72

Growth of $10,000*** as of 06/30/2016

*** 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 05/01/2016

  Gross Net Cap
Investor 1.61% 1.31% 1.29%
Institutional 1.31% 1.01% 0.99%
Advisor 1.31% 1.01% 0.99%
Portfolio

Country Allocation (Top Ten) as of 06/30/2016

A Kutwait 18.13
B Argentina 16.25
C Nigeria 9.82
D Pakistan 9.60
E Morrocco 7.56
F Kenya 5.29
G Oman 4.34
H Vietnam 4.05
I Romania 3.48
J Lebanon 3.42

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

Asset Class Correlation (%) as of 06/30/2016

Source: Morningstar. Data since inception of the Forward Frontier Strategy Fund (12/31/08 through 12/31/15).
Emerging Market Stocks- MSCI Emerging Markets Index; International Stocks- MSCI EAFE Index; Large Cap Stocks- S&P 500 Index; U.S. Bonds- Barclays U.S. Aggregate Bond Index

Fund Details as of 06/30/2016

Annual Portfolio turnover 66%

Risk Characteristics as of 06/30/2016

Beta 1.03
Correlation 0.99
Standard Deviation 17.47
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Rate
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 12/24/2015 $0.299 12/28/2015
Institutional Long-Term Capital Gain 12/07/2015 $0.158 12/08/2015
Investor Income Dividend 12/24/2015 $0.045 12/28/2015
Investor Long-Term Capital Gain 12/07/2015 $0.158 12/08/2015
Advisor Income Dividend 12/24/2015 $0.165 12/28/2015
Advisor Long-Term Capital Gain 12/07/2015 $0.158 12/08/2015
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 Frontier Strategy 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.

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 a non-diversified fund involves the risk of greater price fluctuation than a more diversified portfolio.

Barclays Capital U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers the U.S. investment grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

MSCI Frontier Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of frontier markets.

MSCI EAFE (Europe, Australasia, and Far East) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of 22 developed markets, excluding the U.S. and Canada.

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.

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

One cannot invest directly in an index.

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.

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

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

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 Frontier Strategy Fund was named Forward Frontier Strategy Fund.