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Salient Global Real Estate Fund

Daily NAV

Updated: 9/25/18

Symbol
KIRYX
NAV
$13.58
Change
$-0.03
Inception Date
Apr 28, 2006
Net Assets (All Classes)
$47.1 M
Overview

Overview

The fund seeks total return by targeting a globally diversified portfolio of real estate investment trusts (REITs) and real estate companies across sectors and developed economies. The strategy’s bottom-up, value-oriented approach to stock selection emphasizes superior property location and quality, strong prospects for appreciation in property rents and values, and managements teams’ track records for adding value.

Three Things to Know

  • The fund seeks global investment opportunities in real estate companies that we believe have clear, enduring investment value in both international and U.S. markets—places that are centers of global trade, learning and innovation as well as magnets for commerce and population growth
  • The experienced team, led by Joel Beam, conducts exhaustive property and company analysis in their actively managed investment process, adjusting the portfolio to reflect changing market fundamentals through sector and geographic rotation
  • The strategy’s focus on global REITs and real estate operating companies can complement a portfolio’s global equity or domestic-focused real estate holdings

Process

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

  • Investment universe includes approximately 200 U.S. and 200 non-U.S companies 
  • The bottom-up, value-oriented investment approach continuously evaluates investment opportunities by reconciling discounted cash flows and net asset values using conservative cap rate and growth assumptions
  • Extensive internal research by the investment team leverages a network of trusted third-party knowledge
  • The team constructs concentrated portfolios comprised of high-conviction, benchmark-agnostic investments that are prudently underwritten and actively monitored
Team

Joel Beam

Managing Director & Senior Portfolio Manager
San Francisco

David McGanney

Head Trader – Real Estate
San Francisco

John Palmer

Associate Portfolio Manager
San Francisco

Taylor Arnold

Investment Analyst
Houston

Joshua Panuthos, CFA

Investment Analyst
San Francisco

Performance

Performance (%)

  Aug'181 Q22 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV -0.79 -0.54 -0.10 10.09 3.49 3.82 4.20 3.04
Investor NAV -0.78 -0.61 -0.30 9.75 3.16 3.47 4.48
Class A NAV* -0.85 -0.64 -0.29 9.64 3.07 3.40 3.84 2.71
Class A MOP** -6.57 -6.35 -6.03 3.31 1.06 2.17 3.23 2.21
Class C NAV† -0.86 -0.81 -0.58 9.01 2.50 2.82 3.18 2.04
Class C MOP‡ -1.85 -1.79 -1.52 8.03 2.50 2.82 3.18 2.04
FTSE EPRA/NAREIT Developed Index 0.95 5.20 0.36 5.64 5.71 5.97 4.89

1. As of 08/31/2018
2. As of 06/30/2018

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.

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

Prior to August 21, 2018, Salient Global Real Estate Fund was named Salient International Real Estate Fund and the benchmark was FTSE EPRA/NAREIT Developed ex-U.S. Index.

Calendar Year Performance (%)

  2017201620152014201320122011201020092008
Institutional21.880.98-3.761.75-3.3154.75-14.5618.4636.49-51.44
Investor21.440.74-4.081.33-3.5154.05
Class A21.300.60-4.09-1.60-3.7154.06-17.2618.3336.10-51.56
Class C20.73-0.02-4.620.28-4.2353.13-15.8017.4035.06-51.92
FTSE EPRA/NAREIT Developed Index10.364.06-0.7915.023.6727.73-6.4619.6337.13-48.16

Growth of $10,000*** as of 06/30/2018

*** 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 08/31/2018

Class A DIVIDEND YIELD 11.12
Class A 30-DAY SEC YIELD (%) 0.97
Class A 30-DAY SEC YIELD (UNSUBSIDIZED) (%)
Class C DIVIDEND YIELD 10.70
Class C 30-DAY SEC YIELD (%) 0.62
Class C 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 0.55
Institutional DIVIDEND YIELD 11.49
Institutional 30-DAY SEC YIELD (%) 1.73
Institutional 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 1.66
Investor DIVIDEND YIELD 11.15
Investor 30-DAY SEC YIELD (%) 1.32
Investor 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 1.31

Past performance does not guarantee future results.

Expense Ratio as of 08/21/2018

  Gross Net
Class A 2.44% 1.55%
Class C 2.99% 2.10%
Institutional 2.04% 1.15%
Investor 2.39% 1.50%

The Fund’s investment advisor is contractually obligated to waive 0.25% of the Fund’s management fee so that until April 30, 2020 the Fund’s management fee will be 0.75%. Additionally, the Fund’s investment advisor is contractually obligated until April 30, 2020 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, Class A and Class C shares to an annual rate (as a percentage of the Fund’s average daily net assets) of 1.50%, 1.15% of 1.55% and 2.10%, respectively.

Portfolio

Top 10 Holdings (% of Net Assets) as of 08/31/2018

A Unibail-Rodamco-Westfield 2.69
B Digital Realty Trust, Inc. 2.32
C Jernigan Capital, Inc. 2.14
D Howard Hughes Corp. 2.11
E ADO Properties SA 2.11
F Mack-Cali Realty Corp. 2.10
G Simon Property Group, Inc. 2.10
H Prologis, Inc. 2.07
I Equinix, Inc. 2.06
J Belmond, Ltd. 2.05

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

Country Allocation (Top Ten) as of 08/31/2018

A North America 58.21
B Europe ex-UK 15.73
C United Kingdom 10.42
D Japan 4.84
E Hong Kong 4.63
F Asia ex-Japan 4.41
G Asia Pacific 1.76

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 08/31/2018

Source: Morningstar. Data for trailing three years (9/1/15 through 8/31/18).

World Stocks- MSCI World Index; Government Bonds- Barclays U.S. Treasury Bond Index; Large Cap Stocks- S&P 500 Index; Small Cap Stocks- Russell 2000 Index

Fund Details as of 06/30/2018

Annual Portfolio turnover 41%
# of holdings 42

Risk Characteristics as of 06/30/2018

Beta 0.96
Correlation 0.93
Standard Deviation 12.01
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Per Share ($)
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 06/25/2018 0.15400 06/26/2018
Institutional Income Dividend 03/23/2018 0.72500 03/26/2018
Investor Income Dividend 06/25/2018 0.14500 06/26/2018
Investor Income Dividend 03/23/2018 0.71500 03/26/2018
Class A Income Dividend 06/25/2018 0.14100 06/26/2018
Class A Income Dividend 03/23/2018 0.71100 03/26/2018
Class C Income Dividend 06/25/2018 0.11700 06/26/2018
Class C Income Dividend 03/23/2018 0.69300 03/26/2018
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 Global Real Estate 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.

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

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.

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

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.

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.

Bloomberg Barclays U.S. Treasury Index measures the public obligations of the U.S. Treasury with a remaining maturity of one year or more.

Cap rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. The cap rate is used to estimate the investor’s potential return on his or her investment.

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.

Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity.

FTSE EPRA/NAREIT Developed Index is designed to track the performance of listed real estate companies and REITs worldwide.

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

Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index represents approximately 98% of the investable U.S. equity market.

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.

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.