Salient Launches Salient Pure Trend Fund New Mutual Fund Intends to Offer Systematic Approach to Trend Following
HOUSTON, March 12, 2013 /PRNewswire/ -- Salient Partners L.P. (Salient), a $17.4 billion asset management firm, has launched the Salient Pure Trend Fund (Class A Ticker: SPTAX, Class C Ticker: SPTCX, Class I Ticker: SPTIX).
The Salient Pure Trend Fund ("the Fund") seeks to generate long-term capital appreciation with low correlation to traditional core equity and bond market exposures. It makes both long and short investments primarily in futures contracts and other financially linked derivatives and instruments in order to obtain exposure to momentum — the continuation of recent price trends — across a wide range of global markets and asset classes. The Fund, which has no geographic limitations, also offers a competitive annual management fee of 0.95 percent of its average daily net assets.
"Since momentum strategies tend to perform well when equities are doing poorly, the Salient Pure Trend Fund may benefit investors who are heavily invested in equities," said Lee Partridge, Salient Chief Investment Officer, who serves as one of the Fund's Portfolio Managers. "In addition to offering diversification across more than 45 different futures contracts, this Fund seeks to fill a market need for a managed futures investment vehicle which both responds to market changes and adheres to a rules-based approach."
The Fund's investment approach allows for constant adjustments as market conditions evolve, and requires portfolio allocation decisions to be made according to a rules-based system rather than manager discretion. The portfolio is constructed according to a proprietary, systematic trend-following strategy that utilizes three trend durations — long-term, medium-term and short-term. The Fund targets a volatility level of 20 percent, which is spread equally across all positions, and rebalances its portfolio every month.
"Since trend-following strategies have low correlations to equities and fixed income, they can potentially enhance a portfolio by increasing diversification and overall potential return and decreasing volatility," said Roberto Croce, Ph.D., Salient Director of Quantitative Research, who also serves as the Fund's Portfolio Manager. "This Fund builds on Salient's commitment to provide clients with cost-effective, disciplined investment solutions for achieving true diversification without relying too heavily on traditional market factors such as equity risk."
The Fund's investment advisor (the "Advisor") is Salient Advisors, L.P., a wholly-owned subsidiary of Salient Partners, L.P.
The Fund is a newly organized open-end investment company and has limited operating history, including limited historical performance record, as such the Fund is subject to all of the business risks and uncertainties associated with any new business. The Advisor relies heavily on quantitative models (both proprietary models and those supplied by third party vendors) and information and data supplied by third party vendors. Any decisions made in reliance on incorrect or incomplete models and data expose the Fund to potential risks.
The Advisor utilizes proprietary systematic strategies to gain exposure to momentum by establishing a mixture of long and short positions in various markets, typically utilizing futures contracts. The Advisor's momentum strategy will have the effect of amplifying the Fund's exposure to assets whose prices have been rising and lessening the Fund's exposure to assets whose prices have been declining, which may result in more volatility than investments in broader cross-section of securities. Investing in derivative instruments (such as options, futures, forwards or swaps) and commodity-linked investments can be riskier than traditional investments, and may be more volatile than investments in traditional securities. The value of commodity-linked investments may be affected by financial factors, political developments and natural disasters. The primary risks of futures contracts are the possible lack of a liquid secondary market, losses caused by unanticipated market movements, the Advisor's inability to predict correctly the direction of securities prices, interest rates, currency exchange rates and other economic factors, and counterparty default. In addition, if the Fund has insufficient cash, it may be required to sell portfolio securities to meet margin requirements.
Trying to enhance investment returns by borrowing money or using other leverage tools magnifies both gains and losses, resulting in greater volatility. Investments in foreign securities involve special risks not present in U.S. investments, such as currency fluctuations, lack of regulatory oversight and political developments. Investments in emerging markets are riskier than investment in more developed markets and are subject to risks related to currency, liquidity and volatility. These investments may be considered speculative. Investments in fixed-income securities generally are subject to an issuer's credit risk and risks resulting from changes in the general level of interest rates. Changes in tax laws or regulations, or interpretations thereof in the future, could adversely affect the Fund. Legislation could also negatively impact the amount and tax characterization of distributions received by the Fund's shareholders.
The Fund may engage in other investment practices that may involve additional risks and you should review the Fund's prospectus for a complete discussion.
This does not constitute an offering of any security, product, service or fund, including the Fund, for which an offer can be made only by the Fund's Prospectus.
No fund is a complete investment program and you may lose money investing in a fund. The Fund may engage in other investment practices that may involve additional risks and you should review the Fund's prospectus for a complete description.
You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund and is available, along with information on other Salient funds, by calling 866-667-9228 or from your financial professional. The prospectus should be read carefully before investing.
About Salient Partners L.P.
Salient Partners L.P. is a $17.4 billion investment management firm based in Houston, Texas. The firm is a recognized innovator in the development, management and delivery of sophisticated, non-traditional investment solutions for both institutional and retail investors. Through its comprehensive investment approach, Salient identifies and develops leading strategies that help eliminate unrewarded risk, reduce investing costs and focus on the fundamental drivers of returns to deliver the full potential of all markets to investors. For more information about Salient and its professionals, visit www.salientpartners.com.
The Salient Pure Trend Fund is distributed by Foreside Fund Services, LLC.
Fund shares are not FDIC insured, not bank guaranteed and may lose value.
CONTACT: Chris Moon
SOURCE Salient Partners L.P.