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Salient US Dividend Signal Fund

Daily NAV

Updated: 12/8/17

Symbol
FDYTX
NAV
$33.19
Change
$0.10
Inception Date
Jul 31, 2013
Net Assets (All Classes)
$6.56 M
Overview

Overview

The fund invests in high-quality companies located in the United States with strong financials and identifiable sustained competitive advantages. The team combines proprietary screening and fundamental research to construct an all-cap portfolio that minimizes risk.

Three things to know

  • The actively managed portfolio aims to invest in high-quality stocks across all market caps and targets an above-market yield with lower risk than the benchmark
  • The portfolio includes two components in its investment process: the portion focusing on dividend-paying stocks invests only in companies offering higher relative dividend yields, dividend growth potential and anticipated stock price appreciation while the portion focusing on small- and mid-cap companies features faster growing, niche-focused companies providing positive free cash flow
  • A disciplined investment process run by a team with a long track record provides the fund with high active share

Process

Objective: The fund seeks total return, with dividend and interest income being an important component of that return, while exhibiting less downside volatility than the Russell 3000 Index.

  • The team starts with proprietary quantitative screens to identify growth and value companies that meet specified hurdles
  • Extensive qualitative research then identifies the most attractive companies and eliminates those with negative attributes
  • The fund adheres to broad diversification guidelines as well as strict sell disciplines; it targets lower downside risk, lower volatility and a higher yield than the benchmark
Team

David L. Ruff, CFA

Managing Director & Senior Portfolio Manager
San Francisco

Randall T. Coleman, CFA

Portfolio Manager
San Francisco

Bruce R. Brewington

Portfolio Manager
San Francisco

Eric Sagmeister

Portfolio Manager
San Francisco

Paul Broughton, CFA

Portfolio Manager
San Francisco

Aaron Visse, CFA

Portfolio Manager
San Francisco

Hwee-See Teng

Investment Analyst
San Francisco


David L. Ruff and Eric Sagmeister are registered representatives of ALPS Distributors, Inc.

David L. Ruff, Randall T. Coleman and Aaron Visse have earned the right to use the Chartered Financial Analyst designation. CFA Institute marks are trademarks owned by the CFA Institute.

Performance

Performance (%)

  Nov'171 Q32 YTD2 1 YR2 3 YR2 SINCE
INCEPTION2
Institutional NAV 3.78 2.55 13.28 20.33 9.43 10.89
Investor NAV 3.76 2.46 13.01 19.87 8.88
Class A NAV* 3.77 2.44 12.84 19.69 8.90 10.34
Class A MOP** -2.19 -3.45 6.35 12.82 6.77 8.78
Russell 3000 Index 3.04 4.57 13.91 18.71 10.74

1. As of 11/30/2017
2. As of 09/30/2017

Returns for periods greater than one year are annualized.
* Excludes sales charge.
** Reflects effects of the fund’s maximum sales charge of 5.75%.

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 at www.salientfunds.com. 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 (%)

  201620152014
Institutional17.89-4.4516.75
Investor17.44-4.82
Class A17.31-4.9212.85
Russell 3000 Index12.740.4812.56

Yield as of 11/30/2017

Investor DIVIDEND YIELD 1.14
Investor 30-DAY SEC YIELD (%) 0.61
Investor 30-DAY SEC YIELD (UNSUBSIDIZED) (%) -0.82
Institutional DIVIDEND YIELD 1.39
Institutional 30-DAY SEC YIELD (%) 0.94
Institutional 30-DAY SEC YIELD (UNSUBSIDIZED) (%) -0.49
Class A DIVIDEND YIELD 1.04
Class A 30-DAY SEC YIELD (%) 0.43
Class A 30-DAY SEC YIELD (UNSUBSIDIZED) (%) -0.91

Past performance does not guarantee future results.

Expense Ratio as of 05/01/2017

  Gross Net
Investor 4.22% 1.34%
Institutional 3.87% 0.99%
Class A 4.37% 1.49%

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 1.34% for Investor Class, 0.99% for Institutional Class and 1.49% for Class A 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, 2018, 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 09/30/2017

A Amgen, Inc. 3.69
B Johnson & Johnson 3.56
C Home Depot, Inc. 3.48
D BlackRock, Inc. 3.40
E JPMorgan Chase & Co. 3.20
F United Technologies Corp. 3.18
G Microsoft Corp. 3.17
H Texas Instruments, Inc. 3.14
I U.S. Bancorp 3.10
J General Dynamics Corp. 2.81

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

Sector Allocation (%) as of 09/30/2017

A Financials 20.08
B Information Technology 19.35
C Health Care 17.48
D Consumer Discretionary 14.13
E Industrials 12.50
F Consumer Staples 8.38
G Real Estate 2.84
H Materials 2.74
I Energy 2.50

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 09/30/2017

Annual Portfolio turnover 30%
# of holdings 45

Risk Characteristics as of 09/30/2017

Beta 0.63
Correlation 0.85
Standard Deviation 10.79
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Rate
Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 09/25/2017 $0.109 09/26/2017
Institutional Income Dividend 06/26/2017 $0.138 06/27/2017
Institutional Income Dividend 03/27/2017 $0.100 03/28/2017
Investor Income Dividend 09/25/2017 $0.122 09/26/2017
Investor Income Dividend 06/26/2017 $0.125 06/27/2017
Investor Income Dividend 03/27/2017 $0.061 03/28/2017
Class A Income Dividend 09/25/2017 $0.112 09/26/2017
Class A Income Dividend 06/26/2017 $0.110 06/27/2017
Class A Income Dividend 03/27/2017 $0.045 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 US Dividend Signal 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.

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 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.

Diversification does not assure profit or protect against risk.

There is no guarantee the companies in our portfolio will continue to pay dividends.

30-Day SEC Yield is a standardized calculation adopted by the SEC based on a 30-day period that helps investors compare funds using a consistent method of calculating yield.

30-Day SEC Yield (Unsubsidized) is a standardized calculation adopted by the SEC based on a 30-day period that helps investors compare funds using a consistent method of calculating yield. It excludes expense waivers and reimbursements.

Barclays U.S. Intermediate Corporate Index covers the USD-denominated, investment grade, fixed-rate, taxable corporate bond market. The index includes debt from U.S. and non-U.S. industrial, utility and financial institution issuers with duration of 1-10 years.

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

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.

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

Citi 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.

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Dynamic Income Blended Index is a hypothetical index constructed by Forward Management, which consists of 70% Barclays U.S. Intermediate Corporate Index and 30% MSCI USA IMI High Dividend Yield Index.

Market breadth is a ratio that compares the total number of rising stocks to the total number of falling stocks. Volatility is a statistical measure of the dispersion of returns for a given security or market index.

MSCI USA IMI High Dividend Yield Index is a free float-adjusted market capitalization index that is designed to measure the performance of equities (excluding REITs) with higher dividend income and quality characteristics than average dividend yields that are both sustainable and persistent in the U.S. market.

Russell 3000 Index is a market capitalization-weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of the entire U.S. stock market. The index is composed of the 3,000 largest U.S. companies and 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.

Valuation is the process of determining the value of an asset or company based on earnings and the market value of assets.

Volatility is a statistical measure of the dispersion of returns for a given security or market index.

One cannot invest directly in an index.

David L. Ruff and Eric Sagmeister are registered representatives of ALPS Distributors, Inc.

David L. Ruff, Randall T. Coleman and Aaron Visse have earned the right to use the Chartered Financial Analyst designation. CFA Institute marks are trademarks owned by the CFA Institute.