Salient Launches Pure Trend Fund

The Salient Pure Trend Fund (Class A Ticker: SPTAX, Class C Ticker: SPTCX, Class I Ticker: SPTIX) 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 has no geographic limitations and offers an annual management fee of 0.95% 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%, which is spread equally across all positions, and rebalances its portfolio every month.