Salient MLP & Energy Infrastructure Fund II Marks One-Year Anniversary With $316.3 Million In Assets Under Management

HOUSTON, Oct. 10, 2013 /PRNewswire/ -- Salient Partners L.P. ("Salient"), an $18.8 billion asset management firm, announced the one-year anniversary of its Salient MLP & Energy Infrastructure Fund II (Class A Ticker: SMAPX, Class C Ticker: SMFPX, Class I Ticker: SMLPX). As of September 30, 2013, the Salient MLP & Energy Infrastructure Fund II (the "Fund") had $316.3 million in assets under management. The 1 Year and Inception to Date returns for the Class I (SMLPX) shares through 9/30/13 are 20.05% and 19.99% compared to 15.51% and 17.23% for the Alerian MLP Index over the same periods.*

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The Fund is structured as a Regulated Investment Company (RIC) that intends to avoid the double taxation incurred by investors in C-Corp Funds. It 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 securities of Master Limited Partnerships (MLPs) and energy infrastructure companies of all market capitalizations. The Fund may, for example, invest in MLP Affiliates, C-Corps, and Shipping Companies, broadening the traditional range of energy infrastructure investment opportunities.

"The Fund's positive results in its first year support our belief that MLPs with stronger distribution growth profiles typically outperform those with lower growth profiles, regardless of the interest rate environment," said Gregory A. Reid, Portfolio Manager President and CEO of Salient's MLP business. "We believe investors have benefited from the rigorous analysis of Salient's MLP research team as we focus on investing in companies that we believe will maximize total returns and cash distributions."

The Fund's investment process is designed to generate attractive total returns by investing in a portfolio of publicly-traded MLPs and Energy Infrastructure Companies. Returns are typically driven by the distribution yield plus expected annual growth in the cash distributions. The Advisor maintains proprietary business valuation models and employs a "bottom up" research-driven stock selection process.

*Performance data quoted represents past performance and does not guarantee future results. Investment returns and principal values may fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown. All returns reflect reinvestment of all dividend and capital gain distributions. Index performance is shown for illustrative purposes only and does not reflect the payment of advisory fees and other expenses associated with an investment in a mutual fund. Investors cannot directly invest in an index. The performance shown is for the stated time period only; due to market volatility, each account's performance may be different. Class I shares are offered without any sales charge to certain institutional investors and affiliates of the Fund's investment advisor. The return figures shown do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or the redemption of Fund shares.

The Alerian MLP Index is a composite of the 50 most prominent energy Master Limited Partnerships (MLPs) that provides investors with an unbiased, comprehensive benchmark for the MLP asset class. The index is calculated using a float-adjusted, capitalization-weighted methodology. One cannot invest directly in an index. Since inception returns for the index are shown from the Class I inception date.

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 Energy Infrastructure Companies (including Midstream MLPs and Energy Infrastructure 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 (including the risk that an MLP could lose its tax status as a partnership), environmental hazards, rising interest rates and threats of attack by terrorists on energy assets, each of which could affect the Fund's profitability.

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 MLPs owned by the Fund are subject to regulatory and tax risks, including but not limited to, changes in current tax law which could result in MLPs being treated as corporations for U.S. federal income tax purposes or the elimination or reduction of MLPs tax deductions, which could result in a material decrease in the Fund's NAV and/or lower after-tax distributions to the Fund's 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'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.

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 & Energy Infrastructure Fund II's investment advisor is Salient Capital Advisors, LLC, a wholly-owned subsidiary of Salient Partners, L.P. ("Salient").

Salient is an $18.8 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 & Energy Infrastructure Fund II 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.