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Salient Tactical Growth Fund
Fact Sheet

Daily NAV

Updated: 8/5/20

Symbol
FTGWX
NAV
$28.23
Change
$0.07
Inception Date
Sep 14, 2009
Net Assets (All Classes)
$314.6 M
Overview

Overview

The fund is designed as a core investment for those who worry about losing money in equity market downturns but also want to participate in the market’s upside. The nimble strategy seeks to sidestep downturns while aiming for positive returns through market cycles. Using active market exposure management, the fund moves in and out of the market incrementally based upon macro and technical factors.

Three Things to Know

  • The investment team uses proprietary models to judge the direction of the market and is able to change exposure immediately as market conditions change
  • The fund is able to be up to 120% long when models are positive or move to a 100% cash position and take short positions if models turn negative, with a general objective of maintaining net exposure between 100% net long and 100% net short
  • With a very low standard deviation, the strategy seeks to add value by helping to lower the impact of volatility and to preserve capital during down markets

Process

Objective: The fund’s investment objective is to produce above-average, risk-adjusted returns, in any market environment, while exhibiting less downside volatility than the S&P 500 Index.

  • The investment process begins with an assessment of the fundamental economic environment through valuation, monetary policy and investor sentiment
  • The team then validates these qualitative factors with a quantitative assessment using a proprietary multifactor Volume/Breadth Momentum Model
  • After evaluating these models, the team adjusts the fund’s market exposure accordingly, increasing equity exposure when the risks are low, decreasing equity exposure when the risks are high or taking a neutral position when no clear opportunities are apparent
Team

Christopher J. Guptill

Co-Chief Executive Officer, Chief Investment Officer & Portfolio Manager, Broadmark Asset Management
San Francisco

Performance

Performance (%)

  Jun'201 Q22 YTD2 1 YR2 3 YR2 5 YR2 10 YR2 SINCE
INCEPTION2
Institutional NAV 1.15 1.80 1.38 6.17 4.32 4.24 4.05 3.88
Investor NAV 1.08 1.70 1.16 5.78 3.97 3.89 3.69 3.53
Class A NAV* 1.10 1.70 1.18 5.74 3.87 3.77 3.55 3.08
Class A MOP** -4.70 -4.13 -4.63 -0.34 1.84 2.55 2.94 2.49
Class C NAV† 1.04 1.55 0.87 5.14 3.27 3.22 3.05 2.89
Class C MOP‡ 0.04 0.55 -0.13 4.14 3.27 3.22 3.05 2.89
HFRX Equity Hedge Index 2.21 8.11 -6.30 -2.11 -0.12 -0.26 — —
S&P 500 Total Return Index 1.99 20.54 -3.08 7.51 10.73 10.73 13.99 —

1. As of 06/30/2020
2. As of 06/30/2020

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 05/01/20: Investor Class: 1.86%; Institutional Class: 1.51%; Class A: 1.91%; Class C: 2.46%.

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 January 1, 2019, the fund compared its performance to the S&P 500 Index. After this date, to better reflect the universe of investment opportunities based on the fund’s investment strategy, the fund added the HFRX Equity Hedge Index as the benchmark to which the fund compares its performance.

Calendar Year Performance (%)

  2019201820172016201520142013201220112010
Institutional10.69-4.7610.913.61-1.542.3315.745.14-5.042.57
Investor10.35-5.0710.573.21-1.891.9815.314.81-5.362.22
Class A10.20-5.1310.393.04-2.02-1.0815.114.67-8.21—
Class C9.67-5.849.922.55-2.440.8814.654.14-6.371.60
HFRX Equity Hedge Index10.71-9.429.980.10-2.331.4211.144.81-19.088.92
S&P 500 Total Return Index31.49-4.3821.8311.961.3813.6932.3916.002.1115.06

Growth of $10,000*** as of 06/30/2020

*** 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.

Portfolio

Net Exposure (%)

Week Ending Gross Market Exposure Net Market Exposure
March 31, 2020 15.25 15.34
April 03, 2020 19.68 0.22
April 09, 2020 14.01 10.42
April 17, 2020 35.84 35.80
April 24, 2020 35.55 35.51
May 01, 2020 34.49 34.46
May 08, 2020 35.33 35.32
May 15, 2020 45.05 15.01
May 22, 2020 45.38 17.39
May 29, 2020 50.95 50.97
June 05, 2020 63.02 82.13
June 12, 2020 80.54 70.46
June 19, 2020 70.94 70.89
June 26, 2020 61.41 61.36
June 30, 2020 51.88 51.83

Gross exposure is the value of all of the portfolio’s holdings (long and short positions), excluding the value of the portfolio’s net cash and cash equivalent holdings. Net exposure is the value of the portfolio’s long holdings, minus the value of the portfolio’s short portions and excluding the value of the portfolio’s net cash and cash equivalent holdings.

Drawdown (%) as of 12/31/2019

Fund Details as of 06/30/2020

Annual Portfolio turnover 435%
# of holdings 2

Risk Characteristics as of 06/30/2020

Beta 0.57
Correlation 0.64
Standard Deviation 6.30
Distributions & Tax Information

Distributions

Share Class Type Record Date Distribution
Per Share ($)		 Ex-Dividend /
Reinvest /
Payable Date
Institutional Income Dividend 12/24/2019 0.13522 12/26/2019
Institutional Long-Term Capital Gain 12/04/2019 0.36771 12/05/2019
Institutional Short-Term Capital Gain 12/04/2019 0.80298 12/05/2019
Investor Long-Term Capital Gain 12/04/2019 0.36771 12/05/2019
Investor Short-Term Capital Gain 12/04/2019 0.80298 12/05/2019
Class A Income Dividend 12/24/2019 0.05725 12/26/2019
Class A Long-Term Capital Gain 12/04/2019 0.36771 12/05/2019
Class A Short-Term Capital Gain 12/04/2019 0.80298 12/05/2019
Class C Long-Term Capital Gain 12/04/2019 0.36771 12/05/2019
Class C Short-Term Capital Gain 12/04/2019 0.80298 12/05/2019

Tax Information

Related Resources

Resources

Related Documents

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 Tactical Growth 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.

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.

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.

Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as mutual funds which focus on alternative strategies are not suitable for all investors.

Diversification does not assure profit or protect against risk.

Alpha is a coefficient measuring risk-adjusted performance.

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

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.

Drawdown is the gradual decline in the price of a security or other investment between its high and low over a given period.

HFRX Equity Hedge Index is comprised of private funds with strategies that maintain both long and short positions primarily in equity securities and equity derivatives.

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.

Valuation is the process of determining the current worth of an asset or company.

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

Volume/Breadth Momentum Model is a proprietary model used by the Fund’s sub-advisor (Broadmark Asset Management) to determine optimal market exposure.