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Salient Select Income Fund

Daily NAV

Updated: 10/11/19

Symbol
KIFYX
NAV
$21.44
Change
$0.05
Inception Date
Apr 28, 2006
Net Assets (All Classes)
$465.8 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
Team

Joel Beam

Managing Director & Senior Portfolio Manager
San Francisco

David McGanney

Head Trader – Real Estate
San Francisco

John Palmer

Senior Investment Analyst & Associate Portfolio Manager
San Francisco

Performance

Performance (%)

  Sep'191 Q32 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV 2.81 4.03 17.69 7.25 3.11 5.42 9.98 5.80
Investor NAV 2.81 3.94 17.34 6.88 2.76 5.06 7.93
Class A NAV* 2.79 3.96 17.30 6.82 2.72 5.01 9.59 8.17
Class A MOP** -3.12 -2.00 10.54 0.69 0.71 3.78 8.94 7.82
Class C NAV† 2.76 3.82 16.84 6.24 2.08 4.38 8.90 7.42
Class C MOP‡ 1.76 2.82 15.84 5.24 2.08 4.38 8.90 7.42
ICE BofAML Fixed Rate Preferred Securities Index 0.66 3.05 15.40 10.13 5.50 6.66 7.66

1. As of 09/30/2019
2. As of 09/30/2019

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.

Total Annual Fund Operating Expenses by Share Class as of 05/01/19: Investor Class: 1.77%; Institutional Class: 1.42%; Class A: 1.82%; Class C: 2.37%. 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, 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 1.50% for Investor Class, 1.15% for Institutional Class, 1.55% for Class A and 2.10% 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, 2020, 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.

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 (%)

  2018201720162015201420132012201120102009
Institutional-8.521.8414.09-0.7517.164.7119.663.3126.7476.04
Investor-8.741.4413.66-1.0916.754.3319.23
Class A-8.781.4613.56-1.1213.364.2619.220.1326.4174.98
Class C-9.510.8712.96-1.6715.573.6818.471.8225.4673.59
ICE BofAML Fixed Rate Preferred Securities Index-4.3410.582.327.5715.44-3.6513.594.1113.6620.07

Growth of $10,000*** as of 06/30/2019

*** 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 09/30/2019

Investor DIVIDEND YIELD 5.01
Investor 30-DAY SEC YIELD (%) 4.54
Investor 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 4.31
Class A DIVIDEND YIELD 4.96
Class A 30-DAY SEC YIELD (%) 4.23
Class A 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 4.02
Class C DIVIDEND YIELD 4.44
Class C 30-DAY SEC YIELD (%) 3.83
Class C 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 3.61
Institutional DIVIDEND YIELD 5.34
Institutional 30-DAY SEC YIELD (%) 4.96
Institutional 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 4.73

Past performance does not guarantee future results.

Portfolio

Top 10 Holdings (% of Net Assets) as of 06/30/2019

A Lexington Realty Trust (Preferred Stock) 3.52
B RLJ Lodging Trust (Preferred Stock) 3.33
C Farmland Partners, Inc. (Preferred Stock) 3.26
D UMH Properties, Inc. (Preferred Stock) 3.21
E Braemar Hotels & Resorts, Inc. (Preferred Stock) 3.06
F Chatham Lodging Trust (Common Stock) 2.90
G iStar Financial, Inc. (Preferred Stock) 2.83
H Consolidated-Tomoka Land Co., Sr. Unsec. Notes (Convertible Corporate Bond) 2.77
I RPT Realty (Preferred Stock) 2.64
J National Storage Affiliates Trust (Preferred Stock) 2.46

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

Property Sector Diversification (%) as of 06/30/2019

A Hotels 18.85
B Retail 17.05
C Diversified 15.69
D Residential 8.12
E Specialized 7.54
F Mortgage 6.76
G Health Care 6.22
H Storage 4.80
I Other 4.49
J Warehouse/Industrial 3.72
K Industrial 2.60
L Apartments 2.33
M Office 2.32

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 09/30/2019

Source: Morningstar. Data since inception (03/30/01 through 9/30/19).

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

Fund Details as of 06/30/2019

Annual Portfolio turnover 24%
# of holdings 61
# of Senior Securities (ex-cash) 73.67
% Common Stock (ex-cash) 26.33%

Risk Characteristics as of 06/30/2019

Beta 0.80
Correlation 0.66
Standard Deviation 15.17
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Per Share ($)
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 09/24/2019 0.26501 09/25/2019
Institutional Income Dividend 06/24/2019 0.30099 06/25/2019
Institutional Income Dividend 03/25/2019 0.26924 03/26/2019
Investor Income Dividend 09/24/2019 0.24555 09/25/2019
Investor Income Dividend 06/24/2019 0.28178 06/25/2019
Investor Income Dividend 03/25/2019 0.25142 03/26/2019
Class A Income Dividend 09/24/2019 0.24327 09/25/2019
Class A Income Dividend 06/24/2019 0.28160 06/25/2019
Class A Income Dividend 03/25/2019 0.24956 03/26/2019
Class C Income Dividend 09/24/2019 0.20960 09/25/2019
Class C Income Dividend 06/24/2019 0.23369 06/25/2019
Class C Income Dividend 03/25/2019 0.22128 03/26/2019
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 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.

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 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.

Short selling involves additional investment risks and transaction costs, and creates leverage, which can increase the risk and volatility of a fund.

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.

Bloomberg 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.

Cash flow is a revenue or expense stream that changes a cash account over a given period.

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.

ICE BofAML Fixed Rate Preferred Securities Index is a capitalization-weighted index of preferred stock issues that is generally representative of the market for preferred securities.

ICE BofAML 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.

Source ICE Data Indices, LLC (“ICE DATA”), is used with permission. ICE DATA, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM. NEITHER ICE DATA, ITS AFFILIATES NOR THEIR RESPECTIVE THIRD PARTY PROVIDERS SHALL BE SUBJECT TO ANY DAMAGES OR LIABILITY WITH RESPECT TO THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES OR THE INDEX DATA OR ANY COMPONENT THEREOF, AND THE INDICES AND INDEX DATA AND ALL COMPONENTS THEREOF ARE PROVIDED ON AN “AS IS” BASIS AND YOUR USE IS AT YOUR OWN RISK. ICE DATA, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY SUPPLIERS DO NOT SPONSOR, ENDORSE, OR RECOMMEND FORWARD MANAGEMENT, LLC, OR ANY OF ITS PRODUCTS OR SERVICES.

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.

One cannot invest directly in an index.