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PHILADELPHIA, March 07, 2019 (GLOBE NEWSWIRE) -- Resource Real Estate Diversified Income Fund (the “Fund,” ticker RREDX) recently released its historical annual performance as of February 28, 2019, which was driven by its defensive, income-focused, late-cycle investment strategy.
As asset values become more volatile and the real estate market cycle matures, the Fund remains focused on covering its annualized quarterly distribution and limiting late-cycle risks. This defensive strategy includes aggressive underwriting of sustainable risk-adjusted income investments and recurring asset management in the public and private markets.
“We prefer to focus on more defensive and recurring income rather than assume that building values will continue to appreciate 5-to-10 percent as they have over the last three years,” said Gene Nusinzon, Fund portfolio manager. “Our Fund structure and strategy affords us the flexibility to adapt, and we believe we have the foresight to position the Fund for the evolution of a cycle.”
By investing in a truly diversified portfolio of public equity, private equity, and real estate credit investments, the closed-end interval fund seeks to produce current income, with a secondary objective to achieve long-term capital appreciation with low to moderate volatility and low to moderate correlation to the broader equity markets.
Fund Performance, as of February 28, 2019
|As of 2/28/19||1 YR||3 YR||5 YR||Since Inception (3/12/13)|
ALPS Fund Services, Inc. Resource Diversified Income Fund Class A shares.
Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted above. For performance information current to the most recent month-end, please call toll-free (866) 773-4120 or visit www.ResourceAlts.com.
Performance information is reported net of the Fund’s fees and expense, but does not include the Fund’s maximum sales charge of 5.75% for Class A shares. Performance would have been lower if the maximum sales load had been reflected above.
Class A gross expenses are 2.97% and net expenses are 2.76%. Net fees are based on a contractual fee waiver and reimbursement agreement by the Adviser to waive its fees and absorb the ordinary annual operating expenses of the Fund to the extent they exceed 1.99% per annum of daily net assets of Class A through at least January 31, 2021.
An interval fund is a continuously-offered closed-end fund that periodically offers to repurchase its shares from shareholders. Through the interval structure, the Fund offers a liquidity feature of quarterly redemptions at NAV of no less than five percent (5%) of the shares outstanding made available, redeeming more frequently than other real estate and private equity investments. Regardless of how the Fund performs, there is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer.
See additional disclosures at https://www.resourcealts.com/diversified-income-fund-additional-risk-disclosures/.
An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call (866) 773-4120 or download the file from www.ResourceAlts.com. Read the prospectus carefully before you invest.
The Fund is distributed by ALPS Distributors, Inc. (ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203 ). Resource Real Estate, LLC (the Fund’s adviser), its affiliates, and ALPS Distributors, Inc. are not affiliated.
Investing involves risk. Investment return and principal value of an investment will fluctuate, and an investor’s shares, when redeemed, may be worth more or less than their original cost. Alternative investment funds, ETFs, interval funds, and closed-end funds are subject to management and other expenses, which will be indirectly paid by the Fund. Preferred securities are subject to credit risk and interest rate risk. Convertible securities are typically issued as bonds or preferred shares with the option to convert to equities. As a result, convertible securities are hybrids that have characteristics of both bonds and common stocks and are subject to risks associated with both debt securities and equity securities. Issuers of debt securities may not make scheduled interest and principal payments, resulting in losses to the Fund. Typically, a rise in interest rates causes a decline in the value of fixed income securities. The use of leverage, such as borrowing money to purchase securities, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses.
There currently is no secondary market for the Fund’s shares and the Fund expects that no secondary market will develop. Shares of the Fund will not be listed on any securities exchange, which makes them inherently illiquid. An investment in the Fund’s shares is not suitable for investors who cannot tolerate risk of loss or who require liquidity, other than liquidity provided through the Fund’s repurchase policy. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers, regardless of how the Fund performs. A portion of the Fund’s distribution has been comprised of a return of capital because certain Fund investments have included preferred and common equity investments, which may include a return of capital. Any invested capital that is returned to the shareholder will be reduced by the Fund’s fees and expenses, as well as the applicable sales load. Investments in lesser-known, small and medium capitalization companies may be more vulnerable than larger, more established organizations. The Fund will not invest in real estate directly, but because the Fund will concentrate its investments in securities of REITs, its portfolio will be significantly impacted by the performance of the real estate market. There are risks associated with REITs. Risks include declines from deteriorating economic conditions, changes in the value of the underlying property, and defaults by borrowers. The sales of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s NAV.
Resource, the marketing name for Resource Real Estate, LLC, the Fund’s investment adviser, and its affiliates, is an asset management company that specializes in real estate investments. Resource’s main objective is to be a best-in-class asset manager as measured by risk-adjusted returns to investors and the quality of the funds and businesses it manages. Resource’s investments emphasize consistent value and long-term returns with an income orientation. Resource is a wholly owned subsidiary of C-III Capital Partners LLC, a fully integrated asset management and commercial real estate services company, with $9.2 billion in real estate and debt assets under management as of September 30, 2018.