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REITs are resilient and offer attractive yield, plus the option to participate in a market rebound.

August 27, 2019

Are we headed into a recession or will central banks succeed in pulling us higher again?  Are rates going lower from here or will they rebound?  Will trade wars persist or get resolved shortly?  Do I go to cash or stay invested?  Anxiety levels are elevated amongst investors today.

Equity market indices are still hovering around all-time highs yet none of the risk factors spooking investors (global economic slowdown, trade war, currency devaluation, hard Brexit) have been resolved.  Bond investments have gone the right way as of late (with yields falling and prices rising) but at this level of absolute rates on the long end of the yield curve any move upwards can have an exaggerated negative impact on pricing.

For investors looking for a place to park capital that offers lower downside risk, the option to participate in a potential market rebound, and the ability to generate an attractive dividend yield the real estate sector (REITs) and especially the Timbercreek Global Real Estate Income Fund can be a great place to protect against adverse market movements, while generating income.

Resiliency in volatile markets

REITs are traditionally more resilient than general equities when markets become more volatile or turn bearish. Last month, the Federal Reserve cut its benchmark rate for the first time in over 10 years, marking the start of an easing cycle, further boosting the attractiveness of income-producing assets like real estate.

We have been able to protect against market swoons because of the defensive makeup of the portfolio, the allocation to globally diversified real estate and private investments.  These serve to anchor the portfolio by dampening volatility while enhancing yield, more akin to private real estate than general equities. 

Lower Correlation, More Diversification

Another reason to add alternative assets like real estate is their low correlation with other equities in your portfolio. The lower correlation helps to mitigate the risk that in an adverse market everything in your portfolio moves in one direction and/or by the same magnitude.

The Timbercreek Global Real Estate Income Fund was built for the environment that exists today as it offers an attractive yield, reasonable returns and protects capital in volatile times. 

For more information about the Timbercreek Global Real Estate Income Fund, please visit https://www.timbercreek.com/investments/investment-advisors


Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

Certain statements in this presentation about Timbercreek Global Real Estate Income Fund (the “Fund”) and its business operations and strategy, and financial performance and condition may constitute forward-looking information, future oriented financial information, or financial outlooks (collectively, “Forward Looking Information”). The Forward Looking Information is stated as of the date of this presentation and is based on estimates and assumptions made by the management of the Fund in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management of the Fund believes are appropriate and reasonable in the circumstances. There can be no assurance that such Forward Looking Information will prove to be accurate, as actual results, yields, levels of activity, performance or achievements or future events or developments could differ materially from those expressed or implied by the Forward-Looking Information.

The information provided is general in nature and may not be relied upon nor considered to be tax, legal, accounting or professional advice. Readers should consult with their own accountants, lawyers and/or other professionals for advice on their specific circumstances before taking any action. The information contained herein is from sources believed to be reliable, but accuracy cannot be guaranteed.