HOUSTON, Feb. 14, 2013 /PRNewswire/ -- Salient Partners L.P. (Salient), a $17.4 billion asset management firm, has launched the Salient Global Equity Fund (Class A Ticker: SGEAX, Class C Ticker: SGECX, Class I Ticker: SGEIX).
The Fund seeks to generate long-term capital appreciation by primarily investing in exchange-traded global equities. Under normal market conditions, at least 80 percent of its net assets, plus any borrowings made for investment purposes, will be allocated to common stocks and other equity securities, such as preferred stocks or convertible stocks. At any given time, at least 40 percent of the Fund's net assets will be invested in common stocks and other equity securities of issuers based outside of the U.S. In order to reduce or increase certain exposures, the Fund may invest in various futures contracts and other financially linked derivatives and instruments.
"Despite the fact that equities around the world performed very well during 2012, we believe many retail and institutional investors remain hesitant to invest in the global equities market due to the extreme volatility that followed the financial crisis," said Ajay Mehra, Ph.D., Fund Portfolio Manager and Salient Head of Equities. "The Salient Global Equity Fund seeks to combine the strong track record of the investment team in fundamental stock picking with Salient's risk-management experience."
The Fund's investment process begins by filtering stocks in the MSCI All Country World Index, which includes 2,441 companies with a combined market capitalization of $30.8 trillion from 24 developed markets and 21 emerging markets, down to approximately 150 stocks using quantitative and fundamental research. Potential equity investments are divided into three categories: Capital Growth (companies that Salient believes have sustainable competitive advantages and attractive industry or thematic tailwinds which trade at reasonable valuations and are expected to compound value over time), Yield (companies that Salient believes have above-average dividend yields and/or cash flow yields with modest growth expectations) and Opportunistic (companies that are undergoing significant structural or cyclical changes that Salient believes are likely to transform the future value creation potential of the underlying businesses).
All potential investments are subjected to a hybrid investment approach of top-down metrics and bottom-up fundamental research. The Fund's portfolio consists of between 40 and 60 stocks (though it may include up to 70 stocks) which have passed this investment screening process. Typically, between 70 and 85 percent of the portfolio is composed of stocks from issuers in developed markets, while up to 30 percent of the equities can be from issuers located in emerging markets.
The Advisor may also employ systematic or "rules-based" overlays designed to hedge the portfolio and reduce exposure in an attempt to control volatility and/or to supplement the portfolio and increase exposure.
Along with Dr. Mehra, Lee Partridge, CFA, Salient Chief Investment Officer, also serves as Portfolio Manager of the Fund.
"As a global investor, Ajay has developed unique approaches to security selection, risk management and portfolio construction," said Mr. Partridge. "The combination of his distinct methodologies in these areas creates the foundation of a portfolio which we believe is an attractive option for investors."
"Salient believes that emerging markets are positioned to grow faster than developed markets and that higher-growth companies in emerging markets may have stronger balance sheets than their counterparts in developed markets. Salient seeks to provide investors with a global equities fund that has a long-term outlook," said Dr. Mehra. "Salient's managers have historically utilized their expertise to create portfolios which are diversified across sectors and geographies, and we now have the opportunity to seek to provide investors with diversified and risk-managed exposure to global equities."
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. Investments in foreign securities, especially in emerging markets, involve special risks not present in U.S. investments such as currency fluctuations, lack of regulatory oversight, political and social instability, and risks related to liquidity and volatility. These investments may be considered speculative. Investing in derivative instruments (such as options, futures, forwards or swaps) exposes the Fund to additional risks and transaction costs than traditional investments. For example, fluctuations in the value of derivatives may not correlate perfectly with the overall securities markets. The use of derivatives and other leverage tools magnifies both gains and losses, resulting in greater volatility. The Fund may invest in equity securities of small and mid-capitalization companies with smaller market capitalizations. Investments in securities of companies with smaller capitalizations involve certain risks that may differ from, or be greater than, those for larger companies, such as higher volatility, lower trading volume, lack of liquidity, fewer business lines and lack of public information.
The Fund may engage in other investment practices that may involve additional risks and you should review the Fund 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 Global Equity Fund is distributed by Foreside Fund Services, LLC.
Fund shares are not FDIC insured, not bank guaranteed and may lose value.
SOURCE Salient Partners L.P.