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Salient Select Income Fund

Daily NAV

Updated: 5/26/17

Symbol
KIFYX
NAV
$23.54
Change
$-0.06
Inception Date
Apr 28, 2006
Net Assets (All Classes)
$981.3 M
Overview

Overview

The fund invests in a portfolio of senior securities and high-income equities primarily issued by real estate investment companies. While the fund’s focus is on real estate investment trust (REIT) preferred securities, its allocation among preferred stocks, common stocks and bonds may shift in response to market conditions.

Three Things to Know

  • Among the few mutual funds to focus on the preferred stocks of REITs to target attractive yield with dampened volatility
  • Managed by a tight-knit investment team led by Joel Beam, with more than 20 years of shared history and deep domain expertise
  • Focuses on preferreds but has the flexibility to pursue income and value across the capital stack

Process

Objective: The fund seeks high current income and potential for modest long-term growth of capital.

  • A rigorous, repeatable, bottom-up investment approach
  • Incorporates both quantitative and qualitative analyses to identify companies with the most risk-adjusted appreciation potential
  • Leverages the team’s real estate experience through active stock selection and adjustments to changing market fundamentals through sector and geographic rotation

Prior to May 1, 2016, Salient Select Income Fund was named Forward Select Income Fund.

Team

Joel Beam

Managing Director & Senior Portfolio Manager
San Francisco

David McGanney

Head Trader, Real Estate
San Francisco

John Palmer

Senior Investment Analyst
San Francisco

Taylor Arnold

Investment Analyst
Houston

Joshua Panuthos, CFA

Investment Analyst
San Francisco

Performance

Performance (%)

  Apr'171 Q12 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV 0.46 1.03 1.03 12.40 7.67 9.32 5.84 6.38
Investor NAV 0.46 0.91 0.91 11.94 7.28 8.92 10.29
Class A NAV* 0.46 0.92 0.92 11.87 7.21 8.87 5.47 9.01
Class A MOP** -5.30 -4.90 -4.90 5.45 5.12 7.59 4.85 8.60
Class C NAV† 0.43 0.77 0.77 11.25 6.64 8.27 4.76 8.24
Class C MOP‡ -0.57 -0.23 -0.23 10.25 6.64 8.27 4.76 8.24
BofA Merrill Lynch Preferred Index 1.41 5.21 5.21 5.95 7.47 6.51 3.08

1. As of 04/30/2017
2. As of 03/31/2017

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 (%)

  2016201520142013201220112010200920082007
Institutional14.09-0.7517.164.7119.663.3126.7476.04-40.43-24.02
Investor13.66-1.0916.754.3319.23
Class A13.56-1.1213.364.2619.220.1326.4174.98-40.49-24.21
Class C12.96-1.6715.573.6818.471.8225.4673.59-40.99-24.80
BofA Merrill Lynch Preferred Index2.327.5715.44-3.6513.594.1113.6620.07-25.24-11.31

Growth of $10,000*** as of 03/31/2017

*** 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 04/30/2017

Investor DIVIDEND YIELD 4.49
Investor 30-DAY SEC YIELD (%) 4.61
Investor 30-DAY SEC YIELD (UNSUBSIDIZED) (%)
Class A DIVIDEND YIELD 4.45
Class A 30-DAY SEC YIELD (%) 4.22
Class A 30-DAY SEC YIELD (UNSUBSIDIZED) (%)
Class C DIVIDEND YIELD 4.03
Class C 30-DAY SEC YIELD (%) 3.97
Class C 30-DAY SEC YIELD (UNSUBSIDIZED) (%)
Institutional DIVIDEND YIELD 4.87
Institutional 30-DAY SEC YIELD (%) 4.86
Institutional 30-DAY SEC YIELD (UNSUBSIDIZED) (%)

Past performance does not guarantee future results.

Expense Ratio as of 05/01/2017

  Gross Net Including
Investment-Related Expenses
Net Excluding
Investment-Related Expenses
Investor 2.30% 2.30% 1.70%
Class A 2.35% 2.35% 1.75%
Class C 2.90% 2.90% 2.30%
Institutional 1.95% 1.95% 1.35%
Expenses stated as of the fund’s most recent prospectus. Investment dividend expense, interest expense, acquired fund fees and expenses and certain other fund expenses are included in the Net, Including Investment-Related Expenses and excluded from the Net, Excluding Investment-Related Expenses.
Portfolio

Top 10 Holdings (% of Net Assets) as of 03/31/2017

A Ashford Hospitality Prime, Inc. (Preferred Stock) 5.09
B Chatham Lodging Trust (Common Stock) 3.50
C Colony NorthStar, Inc. (Common Stock) 3.03
D STAG Industrial, Inc. (Common Stock) 3.01
E Simon Property Group LP, Sr. Unsec. Notes (Corporate Bond) 2.89
F Sabra Health Care REIT, Inc. (Common Stock) 2.76
G Colony NorthStar, Inc. (Preferred Stock) 2.36
H FelCor Lodging Trust, Inc. (Convertible Preferred Stock) 2.34
I American Homes 4 Rent (Preferred Stock) 2.26
J EPR Properties (Preferred Stock) 2.16

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

Property Sector Diversification (%) as of 03/31/2017

A Retail 23.60
B Mortgage 16.95
C Hotels 14.69
D Diversified 9.25
E Residential 8.86
F Warehouse/Industrial 7.54
G Health Care 6.86
H Office 6.42
I Other 6.38

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 04/30/2017

Source: Morningstar. Data since inception (03/30/01 through 3/31/17).

Large Cap Stocks- S&P 500 Index; Government Bonds- Barclays U.S. Treasury Bond Index; Corporate Bonds- Citigroup U.S. BIG Bond Index; High Yield Bonds- BofA Merrill Lynch U.S. High-Yield Master II Index

Fund Details as of 03/31/2017

Annual Portfolio turnover 46%
# of holdings 91
# of Senior Securities (ex-cash) 72.14
% Common Stock (ex-cash) 35.7%

Risk Characteristics as of 03/31/2017

Beta 0.79
Correlation 0.66
Standard Deviation 15.89
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Rate
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 03/27/2017 $0.272 03/28/2017
Investor Income Dividend 03/27/2017 $0.243 03/28/2017
Class A Income Dividend 03/27/2017 $0.247 03/28/2017
Class C Income Dividend 03/27/2017 $0.216 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 Select Income 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 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.

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.

BofA Merrill Lynch U.S. High Yield Master II Index tracks the performance of below-investment grade U.S. dollar-denominated corporate bonds issued in the U.S. domestic market.

BofA Merrill Lynch Preferred Index is a capitalization- weighted index of preferred stock issues that is generally representative of the market for preferred securities.

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

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

Citigroup U.S. Broad Investment-Grade Bond Index is an unmanaged index generally representative of the performance of investment-grade corporate and U.S. government bonds.

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 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.

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.

Prior to May 1, 2016, Salient Select Income Fund was named Forward Select Income Fund.