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Salient International Small Cap Fund

Daily NAV

Updated: 10/17/18

Symbol
PTSCX
NAV
$19.76
Change
$0.06
Inception Date
Feb 7, 1996
Net Assets (All Classes)
$74.3 M
Overview

Overview

The fund employs a bottom-up approach that combines fundamental and quantitative analysis to build a focused portfolio of international small cap companies with strong profitability and growth potential.

Three Things to Know

  • Henry James International Management is a New York-based boutique international equity manager that is led by James O’Leary, who has successfully managed international equities since 1999
  • International small cap stocks can help diversify an international equity portfolio and offer additional growth potential
  • With more than 2,300 companies in the MSCI EAFE Small Cap Index, passive products have historically underperformed the index; therefore, we believe international small cap stocks are an asset class where stock pickers can potentially outperform due to inefficiencies in the asset class

Process

Objective: The fund seeks to achieve long-term growth of capital.

  • The strategy is based on a high-conviction investment philosophy that combines a bottom-up quantitative and fundamental analysis system with a top-down risk-mitigating country allocation system
  • Proprietary, quantitative research identifies stocks with strong profitability and growth potential; stocks are then selected based on traditional fundamental analysis
  • The risk-mitigating country allocation system works as a roadmap to direct the portfolio towards countries that may be more attractive and away from countries that are perceived to be riskier
  • The manager utilizes a high-conviction and lower turnover approach to build the portfolio
Team

James O’Leary, CFA

Chief Investment Officer and Senior Portfolio Manager, Henry James International Management (HJIM)
New York

Aidan O’Leary

Vice President of Equities, Henry James International Management (HJIM)
New York

Performance

Performance (%)

  Sep'181 Q32 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV -0.57 -1.45 -2.90 5.09 10.48 7.07 7.41 8.39
Investor NAV -0.61 -1.54 -3.13 4.75 10.11 6.71 7.04 8.96
MSCI EAFE Small Cap Index -0.68 -0.81 -1.87 4.10 12.80 8.34 10.05
MSCI EAFE SMID Cap Index -0.35 0.23 -1.34 4.21 11.83 7.56 8.63

1. As of 09/30/2018
2. As of 09/30/2018

Returns for periods greater than one year are annualized.

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
Institutional34.80-2.3812.41-8.1728.4222.03-19.1821.1029.37-46.42
Investor34.28-2.7412.10-8.5127.9521.70-19.4920.6928.89-46.60
MSCI EAFE Small Cap Index33.502.559.94-4.6329.6920.42-15.6622.3947.32-46.78
MSCI EAFE SMID Cap Index31.271.716.97-2.9726.9319.43-14.5917.7539.80-45.37

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.

Expense Ratio as of 05/01/2018

  Gross Net
Investor 1.82% 1.55%
Institutional 1.47% 1.20%

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 and 1.20% for Institutional Class 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, 2019, 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 09/30/2018

A Kinden Corp. 2.44
B Jardine Lloyd Thompson Group PLC 2.30
C Dalata Hotel Group PLC 2.25
D Don Quijote Holdings Co., Ltd. 1.86
E Teleperformance 1.80
F Solutions 30 SE 1.71
G Valmet OYJ 1.61
H OZ Minerals, Ltd. 1.50
I Aeon Delight Co., Ltd. 1.49
J Link Administration Holdings, Ltd. 1.44

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

Sector Allocation (%) as of 09/30/2018

A Industrials 28.18
B Consumer Discretionary 16.40
C Information Technology 16.20
D Materials 9.37
E Financials 9.35
F Consumer Staples 6.27
G Real Estate 5.57
H Health Care 2.80
I Energy 2.34
J Telecommunication Services 2.28
K Utilities 1.24

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

Regional Allocation (%) as of 09/30/2018

A Europe 55.08
B Japan 32.00
C Asia ex-Japan 10.12
D North America 2.20
E Africa/Mideast 0.60

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 06/30/2018

Annual Portfolio turnover 69%
# of holdings 100

Risk Characteristics as of 06/30/2018

Beta 0.98
Correlation 0.96
Standard Deviation 18.07
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Per Share ($)
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 12/22/2017 0.53577 12/26/2017
Investor Income Dividend 12/22/2017 0.46460 12/26/2017
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 International Small Cap 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.

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 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.

MSCI EAFE Small Cap Index is an unmanaged, market-weighted index of small companies in developed markets, excluding the U.S. and Canada. One cannot invest directly in an index.

MSCI EAFE SMID Cap Index captures mid and small cap representation across Developed Markets countries around the world, excluding the US and Canada. 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.

Valuation is the process of determining the current worth of an asset or company.

Effective November 2011, Forward Management directly manages the fund’s cash portion.

As of August 23, 2018, the Salient International Small Cap Fund replaced the sub-advisor, Pictet Asset Management Limited. (PAM LTD) with Henry James International Management, Inc.

On August 23, 2018, Salient International Small Cap Fund added MSCI EAFE SMID Cap Index as a secondary benchmark.

In order to reduce transaction costs, Forward Management may purchase futures and ETFs to equitize cash flows into the portfolio, and may purchase high-grade, short-term fixed-income securities to serve as collateral for futures purchased.

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