Resource Real Estate Diversified Income Fund Access to Truly Diversified Real Estate Opportunities

Risk Disclosures

Risk Disclosures

Risk Disclosures

Interest Rate Uncertainty Everything about the current macro and monetary environment is uncertain: GDP growth is strong but projected to moderate, the labor market is as tight as a vise, and interest rates are back near late-2017 lows. This environment requires actively diversifying your income strategy.

Income is Hard to Find All of the macro and fiscal uncertainty comes with one certainty: yields remain historically low compared to two decades ago. Across the risk spectrum, traditional income investment yields are lower. This erosion has created a massive income gap in your portfolio.

Markets Remain Volatile Rate uncertainty has also brought increased volatility back to the equity markets. First, markets jumped up and down in 2018 based on fears of rapid rate increases, then plummeted again in December as the Fed’s pause was prompted by concerns of a global economic slowdown. We believe this late-cycle volatility is here to stay. You should look to broadly diversify your portfolio for today’s market conditions.

Real Estate Gets a Boost Finally, historically low interest rates and strong market fundamentals have lifted real estate. However, keep in mind, that in today’s late-cycle environment, we believe a truly diversified, actively managed real estate strategy may offer the risk-adjusted, income-focused returns you need as traditional assets face headwinds.

Interval Fund Structure The interval fund structure makes a diversified real estate strategy possible. Typically, alternatives like commercial real estate were inaccessible for many investors due to suitability requirements or onerous investment minimums. The interval fund is an innovative structure that helps solve for those issues, offering your clients access to higher-yielding alternatives in a structure sporting lower investment minimums, daily pricing, and holdings transparency. The trade off is quarterly liquidity – a gated liquidity feature that allows investors to redeem at regular quarterly intervals. Regardless of how an interval fund performs, redemptions happen quarterly at no less than 5 percent of the shares outstanding. An investor may not be able to sell or otherwise liquidate his shares whenever he would prefer, except to the extent under an interval fund’s quarterly repurchase offer.

Resource Real Estate Diversified Income Fund The Resource Real Estate Diversified Income Fund (the “Fund”) employs a unique income strategy that includes a robust allocation to real estate debt, helping support a 5.7 percent annualized quarterly distribution as of June 30, 2019. Beyond income, the Fund also looks to strategically add growth potential, resulting in a 7.97 percent total return over the last three years. Finally, as its name suggests, the Diversified Income Fund is truly diversified across sectors, managers, and strategies, with most individual holdings making up less than five percent of total assets.

Investment Categories Here’s a closer look at each strategy. The Fund’s credit portfolio can offer a strategic late-cycle move to both generate potential income and mitigate downside risks. The public equity category helps add further income potential, while the private equity category is focused on generating a low-correlated total return that helps diversify the overall portfolio.

Income The Fund provides a range of potential benefits. First, through its diversified portfolio of real estate assets, the Fund seeks to offer a sustainable, consistent quarterly distribution.

Diversification Diversification is not just in the Fund’s name. Here’s an under-the-hood view of the Fund’s diversified holdings.

Access to Institutional Managers Those holdings include access to some top institutional managers, including Heitman, Brookfield, Ares, and Clarion.

Nationwide Properties in a Single Investment Institutional access means access to institutional properties across sectors and geographies in a single real estate investment.

Performance And, as always, the strategy’s validation is in the results. As we move later into the current cycle, the Fund’s decision to actively move further into credit has proved wise, with a higher risk-adjusted return than its benchmarks over the last year.

Invest With an Experienced Real Estate Team The Fund is managed by a team of experienced real estate professionals.

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