Broker Check

Interval Funds

INTERVAL FUNDS INVESTING IN REAL ESTATE
An interval fund is a hybrid investment which provides individual investors access to a diversified
portfolio of both public and private securities. Put another way, these funds allow individuals to invest
alongside some the largest institutional investors in the U.S. including major pension funds,
endowments and life insurance companies.

The 2 interval funds that I have access to are similar in two respects: 1) they both have a larger allocation to                                                                                                            private real estate and 2) they both use sub-advisors for their private real estate funds that provide consulting                                                                                                        services to clients.

PRIVATE REAL ESTATE FUNDS
Large institutions and wealthy individuals ordinarily make their real estate investments through private
real estate funds. They do this in order to achieve diversification and benefit from the expertise of highly
experienced managers. But these funds historically have required large minimum amounts, ranging from
$1 million to more than $5 million. The solution for all but the wealthiest investors is the interval fund
because it pools investor money and makes it possible for the individual to participate in multiple
private real estate funds.

PUBLIC REAL ESTATE SECURITIES
These investments include primarily REITs which own real estate and debt, primarily real estate. They
are publicly traded and therefore may provide liquidity for investors who wish to redeem. Redemption is
currently offered on a quarterly basis.

SUMMARY OF OBJECTIVES
Current income potential paid on a quarterly basis.
Capital appreciation.
Low correlation to the stock market and other asset classes.
Inflation protection from real estate valuations.