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Salient Global Real Estate Fund
Fact Sheet

Daily NAV

Updated: 1/17/20

Symbol
KIRYX
NAV
$14.74
Change
$0.03
Inception Date
Apr 28, 2006
Net Assets (All Classes)
$39.6 M
Overview

Overview

The fund seeks total return by targeting a globally diversified portfolio of real estate investment trusts (REITs) and real estate companies across sectors and developed economies. The strategy’s bottom-up, value-oriented approach to stock selection emphasizes superior property location and quality, strong prospects for appreciation in property rents and values, and managements teams’ track records for adding value.

Three Things to Know

  • The fund seeks global investment opportunities in real estate companies that we believe have clear, enduring investment value in both international and U.S. markets—places that are centers of global trade, learning and innovation as well as magnets for commerce and population growth
  • The experienced team, led by Joel Beam, conducts exhaustive property and company analysis in their actively managed investment process, adjusting the portfolio to reflect changing market fundamentals through sector and geographic rotation
  • The strategy’s focus on global REITs and real estate operating companies can complement a portfolio’s global equity or domestic-focused real estate holdings

Process

Objective: The fund seeks total return from both capital appreciation and current income.

  • Investment universe includes approximately 200 U.S. and 200 non-U.S companies 
  • The bottom-up, value-oriented investment approach continuously evaluates investment opportunities by reconciling discounted cash flows and net asset values using conservative cap rate and growth assumptions
  • Extensive internal research by the investment team leverages a network of trusted third-party knowledge
  • The team constructs concentrated portfolios comprised of high-conviction, benchmark-agnostic investments that are prudently underwritten and actively monitored
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 (%)

  Dec'191 Q42 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV 1.99 2.85 21.31 21.31 9.79 5.16 7.08 3.33
Investor NAV 1.95 2.80 20.87 20.87 9.41 4.82 — 4.63
Class A NAV* 1.95 2.80 20.82 20.82 9.37 4.77 6.70 3.00
Class A MOP** -3.93 -3.12 13.83 13.83 7.24 3.53 6.07 2.55
Class C NAV† 1.89 2.60 20.19 20.19 8.69 4.14 6.03 2.32
Class C MOP‡ 0.89 1.60 19.19 19.19 8.69 4.14 6.03 2.32
FTSE EPRA/NAREIT Developed Index 0.49 1.75 21.91 21.91 8.28 5.56 8.37 —

1. As of 12/31/2019
2. As of 12/31/2019

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: 3.03%; Institutional Class: 2.68%; Class A: 3.08%; Class C: 3.63%. 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.

Prior to August 21, 2018, Salient Global Real Estate Fund was named Salient International Real Estate Fund and the benchmark was FTSE EPRA/NAREIT Developed ex-U.S. Index.

Calendar Year Performance (%)

  2018201720162015201420132012201120102009
Institutional-10.5121.880.98-3.761.75-3.3154.75-14.5618.4636.49
Investor-10.7821.440.74-4.081.33-3.5154.05———
Class A-10.7421.300.60-4.09-1.60-3.7154.06-17.2618.3336.10
Class C-11.5120.73-0.02-4.620.28-4.2353.13-15.8017.4035.06
FTSE EPRA/NAREIT Developed Index-5.6310.364.06-0.7915.023.6727.73-6.4619.6337.13

Growth of $10,000*** as of 09/30/2019

*** 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 10/31/2019

Class A DIVIDEND YIELD 0.93
Class A 30-DAY SEC YIELD (%) 1.74
Class A 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 1.22
Class C DIVIDEND YIELD 0.41
Class C 30-DAY SEC YIELD (%) 1.31
Class C 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 0.74
Institutional DIVIDEND YIELD 1.23
Institutional 30-DAY SEC YIELD (%) 2.23
Institutional 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 1.68
Investor DIVIDEND YIELD 0.96
Investor 30-DAY SEC YIELD (%) 1.92
Investor 30-DAY SEC YIELD (UNSUBSIDIZED) (%) 1.36

Past performance does not guarantee future results.

Portfolio

Top 10 Holdings (% of Net Assets) as of 09/30/2019

A Unibail-Rodamco-Westfield 3.42
B Tokyo Tatemono Co., Ltd. 2.90
C Prologis, Inc. 2.74
D Mitsui Fudosan Co., Ltd. 2.69
E Mid-America Apartment Communities, Inc. 2.67
F Mitsubishi Estate Co., Ltd. 2.67
G Sumitomo Realty & Development Co., Ltd. 2.63
H Alexandria Real Estate Equities, Inc. 2.55
I Equity Residential 2.54
J CapitaLand, Ltd. 2.48

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

Country Allocation (Top Ten) as of 09/30/2019

A North America 52.65
B Asia Pacific 21.78
C Europe Ex UK 17.61
D United Kingdom 7.96

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 10/31/2019

Source: Morningstar. Data for trailing three years (11/1/16 through 10/31/19).

World Stocks- MSCI World Index; Government Bonds- Bloomberg Barclays U.S. Treasury Bond Index; Large Cap Stocks- S&P 500 Index; Small Cap Stocks- Russell 2000 Index

Fund Details as of 09/30/2019

Annual Portfolio turnover 101%
# of holdings 56

Risk Characteristics as of 09/30/2019

Beta 1.01
Correlation 0.92
Standard Deviation 11.67
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Per Share ($)		 Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 12/24/2019 0.17661 12/26/2019
Institutional Income Dividend 09/24/2019 0.04604 09/25/2019
Institutional Income Dividend 06/24/2019 0.07733 06/25/2019
Institutional Income Dividend 03/25/2019 0.05611 03/26/2019
Investor Income Dividend 12/24/2019 0.16322 12/26/2019
Investor Income Dividend 09/24/2019 0.03339 09/25/2019
Investor Income Dividend 06/24/2019 0.06479 06/25/2019
Investor Income Dividend 03/25/2019 0.04364 03/26/2019
Class A Income Dividend 12/24/2019 0.16144 12/26/2019
Class A Income Dividend 09/24/2019 0.03161 09/25/2019
Class A Income Dividend 06/24/2019 0.06364 06/25/2019
Class A Income Dividend 03/25/2019 0.04191 03/26/2019
Class C Income Dividend 12/24/2019 0.14110 12/26/2019
Class C Income Dividend 09/24/2019 0.01173 09/25/2019
Class C Income Dividend 06/24/2019 0.02457 06/25/2019
Class C Income Dividend 03/25/2019 0.02301 03/26/2019

Tax Information

Related Resources

Resources

Related Documents

 

On August 22, 2018, Salient Global Real Estate Fund acquired Salient Tactical Real Estate Fund.

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 Global Real Estate 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 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.

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.

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.

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

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

Cap rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. The cap rate is used to estimate the investor’s potential return on his or her investment.

Cash flow measures the cash generating capability of a company by adding non-cash charges (e.g., depreciation) and interest expense to pretax income.

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.

Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity.

FTSE EPRA/NAREIT Developed Index is designed to track the performance of listed real estate companies and REITs worldwide.

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

Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. The Russell 3000 Index 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.

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 value of an asset or company based on earnings and the market value of assets.

One cannot invest directly in an index.