Salient Launches Salient MLP Fund

HOUSTON, June 17, 2014 /PRNewswire/ -- Salient Partners L.P. (Salient), a $19.8 billion asset management firm, has launched the Salient MLP Fund (Class A Ticker: SAMCX, Class C Ticker: SCMCX, Class I Ticker: SIMCX). This is the firm's second mutual fund focused on master limited partnerships (MLPs).

The Salient MLP Fund (the "Fund") seeks to provide a high level of total return and emphasizes making quarterly cash distributions to shareholders. Its strategy entails investing at least 80 percent of its net assets in equity securities of MLPs. The Fund may also invest in securities of other energy companies and securities issued by open and closed-end investment companies, including money market funds, actively managed and index exchange traded funds and exchange traded notes, U.S. government securities, debt securities, cash and/or other cash equivalents.  

"We believe economic uncertainty and a low interest rate environment have caused an increased interest in yield-oriented securities," said Gregory A. Reid, Partner and Managing Director of Salient, who serves as the President and CEO of Salient's Master Limited Partnership business. "Many investors seeking attractive yields, potential inflation protection and distribution growth are turning to MLPs, which have demonstrated a compelling historical performance since 2006."

Focused on the midstream energy industry, with long-term, fee-based real assets that engage in the transportation and storage of natural resources, the Salient MLP Fund utilizes a C-Corp structure. The Advisor intends to strategically utilize leverage to minimize the effects of deferred tax liability accruing on any unrealized gains, realized gains and net income. Leverage will be approximately 25 percent of the value of the Fund's total assets. The Fund is non-diversified, which means that it may invest in a limited number of issuers, and its investment may be in issuers of any market capitalization ranges. Portfolio allocation will be focused in Midstream MLPs that principally own and operate assets used in energy logistics.

"The Fund's investment process puts emphasis on seeking cash flow stability, balance sheet strength and management experience," said Mr. Reid. "Daily liquidity, quarterly distributions and 1099 tax reporting are additional attributes of the Fund's investor-friendly structure."

To learn more about the Salient MLP Fund, please visit www.salientfunds.com. For more information about Salient, please contact Chris Moon of JCPR at 973-850-7304 or [email protected].

The Fund's investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase price fluctuation. The value of commodity-linked investments such as the MLPs and Other Energy Companies in which the Fund invests are subject to risks specific to the industry they serve, such as fluctuations in commodity prices, reduced volumes of available natural gas or other energy commodities, slowdowns in new construction and acquisitions, a sustained reduced demand for crude oil, natural gas and refined petroleum products, depletion of the natural gas reserves or other commodities, changes in the macroeconomic or regulatory environment, environmental hazards, rising interest rates and threats of attack by terrorists on energy assets, each of which could affect the Fund's profitability.

MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. If an MLP were to be obligated to pay federal income tax on its income at the corporate tax rate, the amount of cash available for distribution would be reduced and such distributions received by the Fund would be taxed under federal income tax laws applicable to corporate dividends received (as dividend income, return of capital, or capital gain).

In addition, investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Such companies may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling.

Additional management fees and other expenses are associated with investing in MLP funds. The Fund is subject to certain MLP tax risks and risks associated with accounting for its deferred tax liability which could materially reduce the net asset value. An investment in the Fund does not offer the tax benefits of a direct investment in an MLP.

The Fund, unlike most open-end funds, is classified for federal tax purposes as a domestic taxable corporation or so-called Subchapter "C" corporation. As a "C" corporation, the Fund will incur tax expenses. This treatment is still a relatively recent strategy for open-end funds, and it involves complicated accounting, tax and valuation aspects that may cause the Fund to differ significantly from most other open-end registered investment companies. This could result in unexpected and potentially significant accounting, tax and valuation consequences for the Fund and for its shareholders. In addition, accounting, tax and valuation practices in this area are still developing, and there may not always be a clear consensus among industry participants as to the most appropriate approach. This could result in changes over time in the practices applied by the Fund, which, in turn, could have significant adverse consequences on the Fund and its shareholders.

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 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.

A Word about Forward-Looking Statements. This press release contains "forward-looking statements" as defined under the U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual future results to differ significantly from the Fund's present expectations or projections indicated in any forward looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; leverage risk; valuation risk; interest rate risk; tax risk; the volume of sales and purchase of shares; the continuation of investment advisory, administration and other service arrangements; and other risks discussed in the Fund's filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein.

This press release 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.

Any tax or legal information discussed herein is merely a summary of our current understanding and interpretation of certain tax characteristics and is not exhaustive.  MLPs and MLP investments have unique tax characteristics. Investors must consult their tax advisor or legal counsel for advice and information regarding their particular situation. Neither the Fund nor its representatives purport to give tax or legal advice.

For more information about Salient, please contact Chris Moon of JCPR at 973-850-7304 or [email protected].

ABOUT SALIENT
The Salient MLP Fund's investment advisor is Salient Capital Advisors, LLC, a wholly-owned subsidiary of Salient Partners, L.P. ("Salient").

Salient is a $19.8 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 MLP Fund is distributed by Foreside Fund Services, LLC.

Fund shares are not FDIC insured, not bank guaranteed and may lose value.

Logo - http://photos.prnewswire.com/prnh/20120917/NY75507LOGO

SOURCE Salient Partners L.P.