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Salient Select Opportunity Fund

Daily NAV

Updated: 6/19/18

Symbol
FSOTX
NAV
$24.37
Change
$-0.08
Inception Date
Jul 31, 2013
Net Assets (All Classes)
$4.52 M

The fund is closed to new investments as of June 13, 2018.

Overview

Overview

The fund seeks income and value across the capital structure of asset-rich companies that have unique opportunities in specialized market areas. It seeks opportunities across a wide range of industry sectors, including banks, insurance companies, real estate, industrials and telecoms with an emphasis on preferred securities.

Three Things to Know

  • The strategy uses a value-focused approach and is managed by Joel Beam, portfolio manager of Salient Select Income Fund
  • Invests in a flexible mix of asset-rich companies across global equities, bonds, preferreds and hybrids selected in part for their income-generating potential
  • This outcome-oriented strategy aims for positive total returns and stable income streams over market cycles and to add return and diversification potential to a fixed-income allocation

Process

Objective: The fund seeks total return through current income and long-term capital appreciation

  • A rigorous, repeatable, bottom-up investment approach.
  • Incorporates both quantitative and qualitative analyses guided by a cash flow, assets and management
  • Leverages the team’s real estate experience through active stock selection and may frequently adjust portfolio allocations based upon our assessment of general market and economic conditions
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 (%)

  May'181 Q12 YTD2 1 YR2 3 YR2 SINCE
INCEPTION2
Institutional NAV -1.40 -4.94 -4.94 -0.60 0.53 3.66
Investor NAV -1.40 -4.99 -4.99 -0.92 0.18 -0.06
Class A NAV* -1.45 -5.03 -5.03 -1.07 0.02 3.15
Class A MOP** -7.13 -10.49 -10.49 -6.77 -1.94 1.84
Class C NAV† -1.49 -5.15 -5.15 -1.52 -0.45 0.91
Class C MOP‡ -2.47 -6.10 -6.10 -2.49 -0.45 0.91
MCSI World Index 0.72 -1.15 -1.15 14.20 8.58
ICE BofAML Fixed Rate Preferred Securities Index 0.78 -1.00 -1.00 4.06 5.24

1. As of 05/31/2018
2. As of 03/31/2018

Returns for periods greater than one year are annualized.
* Excludes sales charge.
** Reflects effects of the fund’s maximum sales charge of5.75%.
† 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 (%)

  2017201620152014
Institutional6.0416.68-11.017.43
Investor5.6616.30-11.30
Class A5.5116.08-11.453.82
Class C5.0215.53-11.84
MCSI World Index23.078.15-0.325.50
ICE BofAML Fixed Rate Preferred Securities Index10.582.327.5715.44

Yield as of 05/31/2018

Investor DIVIDEND YIELD 2.35
Investor 30-DAY SEC YIELD (%) 1.86
Investor 30-DAY SEC YIELD (UNSUBSIDIZED) (%) -0.02
Institutional DIVIDEND YIELD 2.72
Institutional 30-DAY SEC YIELD (%) 2.29
Institutional 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 0.44
Class A DIVIDEND YIELD 2.24
Class A 30-DAY SEC YIELD (%) 1.62
Class A 30-DAY SEC YIELD (UNSUBSIDIZED) (%) -0.15
Class C DIVIDEND YIELD 1.73
Class C 30-DAY SEC YIELD (%) 1.24
Class C 30-DAY SEC YIELD (UNSUBSIDIZED) (%) -0.63

Past performance does not guarantee future results.

Expense Ratio as of 05/01/2018

  Gross Expense Cap Net Including
Investment-Related
Expenses
Net Excluding
Investment-Related
Expenses
Investor 3.80% 1.58% 2.49% 2.26%
Institutional 3.45% 1.23% 2.14% 1.91%
Class A 3.95% 1.73% 2.64% 2.41%
Class C 4.40% 2.18% 3.09% 2.86%

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.

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 1.58% for Investor Class, 1.23% for Institutional Class, 1.73% for Class A and 2.18% 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, 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 03/31/2018

A Treasury Bill B 06/07/18 (Government Bond) 12.08
B Unione di Banche Italiane SpA (Common Stock) 6.81
C Berkshire Hathaway, Inc. (Common Stock) 6.18
D American Homes 4 Rent (Preferred Stock) 5.71
E Belmond, Ltd. (Common Stock) 4.80
F SPDR® S&P 500® ETF Trust (Exchange-Traded Funds) 4.61
G Commerzbank AG (Common Stock) 4.54
H JC Penney Corp., Inc., Sr. Unsec. Notes (Corporate Bond) 4.27
I Deutsche Bank AG, Jr. Sub. Notes (Contingent Convertible Securities) 4.05
J Genesis Healthcare, Inc. (Common Stock) 3.56

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

Asset Class Correlation as of 05/31/2018

Source: Morningstar. Data since inception (07/31/13 through 3/31/18).

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

Fund Details as of 03/31/2018

Annual Portfolio turnover 57%
# of holdings 25
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Per Share ($)
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 03/23/2018 0.09600 03/26/2018
Investor Income Dividend 03/23/2018 0.07300 03/26/2018
Class A Income Dividend 03/23/2018 0.06400 03/26/2018
Class C Income Dividend 03/23/2018 0.03600 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 Select Opportunity 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.

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.

Diversification does not assure profit or protect against risk.

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 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 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.

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.

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

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.

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.

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.

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

Preferred and hybrid securities are securities that have characteristics of both equity and debt securities.

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.

Salient Select Income Fund seeks high current income and potential for modest long-term growth of capital.