N-CSRS 1 fp0054329_ncsrs.htm

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

WASHINGTON, D.C.  20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED 

MANAGEMENT INVESTMENT COMPANIES

 

811-22749 

(Investment Company Act file number)

 

Resource Real Estate Diversified Income Fund 

(Exact name of registrant as specified in charter)

 

717 Fifth Avenue, 14th Floor 

New York, NY 10022 

 (Address of principal executive offices) (Zip code)

 

The Corporation Trust Company 

Corporation Trust Center, 1209 Orange Street 

Wilmington, DE 19801 

(Name and address of agent for service)

 

Copy to:

 

JoAnn M. Strasser

Thompson Hine LLP

41 South High Street, 17th Floor

Columbus, OH 43215

(614) 469-3265

Lawrence S. Block

Resource Real Estate

Diversified Income Fund

717 Fifth Avenue, 14th Floor

New York, NY 10022

 (212) 506-3899

 

Registrant’s telephone number, including area code: (215) 231-7050

 

Date of fiscal year end: September 30

 

Date of reporting period: October 1, 2019 - March 31, 2020

 

 

Item 1.  Reports to Stockholders.

 

 

TABLE OF CONTENTS

 

 

Portfolio Update

1

Portfolio of Investments

3

Statement of Assets and Liabilities

8

Statement of Operations

9

Statements of Changes in Net Assets

10

Statement of Cash Flows

13

Financial Highlights

 

Class A

14

Class C

15

Class W

16

Class I

17

Class L

18

Notes to Financial Statements

19

Additional Information

28

 

Beginning in 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically by calling the Fund at 855-747-9559, or submit a signed letter of instruction requesting paperless reports to PO Box 219169, Kansas City, MO 64121.

 

If you own shares through a financial intermediary, you may contact your financial intermediary to request your shareholder reports electronically.

 

You may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish to continue receiving paper copies of your shareholder reports by calling the Fund at 855-747-9559, or by submitting a signed letter of instruction requesting paper reports to PO Box

 

219169, Kansas City, MO 64121. If you own shares through a financial intermediary, contact the financial intermediary to request paper copies. Your election to receive reports in paper will apply to all funds held with the fund complex or your financial intermediary.

 

 

 

Resource Real Estate Diversified Income Fund

Portfolio Update

 

March 31, 2020 (Unaudited)

 

The Fund’s performance figures for the periods ended March 31, 2020,* compared to its benchmarks:

 

Resource Real Estate Diversified Income Fund

6 Month

1 Year

3 Year

5 Year

Since Inception

Inception

Class A Shares – Without Load

-10.73%

-5.88%

2.58%

3.65%

4.99%

3/12/2013

Class A Shares – With Load

-15.85%

-11.32%

0.59%

2.26%

4.11%

3/12/2013

Class C Shares – Without Load

-10.98%

-6.59%

1.84%

2.89%

3.94%

8/1/2014

Class C Shares – With Load(a)

-13.14%

-8.87%

1.31%

2.58%

3.67%

8/1/2014

Class W Shares – Without Load

-10.70%

-5.89%

2.60%

3.49%

4.27%

11/21/2014

Class I Shares – Without Load

-10.50%

-5.61%

2.89%

3.57%

4.55%

8/1/2014

Class L Shares – Without Load

-10.84%

-6.12%

–

–

2.08%

7/10/2017

Class L Shares – With Load

-14.60%

-10.08%

–

–

0.48%

7/10/2017

Bloomberg Barclays U.S. Aggregate Bond Index1,3

3.33%

8.93%

4.82%

3.36%

3.24%

3/12/2013

S&P 500 Total Return Index2

-12.31%

-6.98%

5.10%

6.73%

9.73%

3/12/2013

Wells Fargo® Hybrid and Preferred Securities REIT Index4

-22.91%

-18.57%

-3.70%

0.06%

1.97%

3/12/2013

 

*Returns for periods greater than one year are annualized.

(a) Effective as of December 23, 2016, Class C shares no longer have a sales load.

1The Bloomberg Barclays U.S. Aggregate Bond Index is a market value-weighted index of investment grade fixed-rated debt issues, including government, corporate, asset-backed and mortgage-backed securities.

2The S&P 500 Total Return Index is an unmanaged, market-value weighted index of 500 common stocks chosen for market size, liquidity and industry group representation.

3Effective upon publication of the Annual Report dated September 30, 2019, the Fund changed its primary benchmark to the Bloomberg Barclays U.S. Aggregate Bond Index. This change was made to align the Fund’s primary benchmark with the primary benchmark used by its real estate interval fund peer group.

4The Wells Fargo® Hybrid and Preferred Securities REIT (“WHPSR”) Index is designed to track the performance of preferred securities issued in the U.S. market by real estate investment trusts. The WHPSR Index is composed exclusively of preferred shares and depositary shares. Investors cannot invest directly in an index.

 

Past performance is not indicative of future results. The investment return and principal value of an investment will fluctuate. An investor’s shares when redeemed may be worth more or less than the original cost. Total return is calculated assuming reinvestment of all dividends and distributions. Performance figures for periods greater than one year are annualized. As of the Fund’s most recent prospectus dated January 15, 2020, the Fund’s total annual operating expense, including acquired fund fees and expenses, before fee waivers is 2.90% for Class A, 3.58% for Class C, 2.88% for Class W, 2.68% for Class I and 3.17% for Class L shares. After fee waivers, the Fund’s total annual operating expense is 2.83% for Class A, 3.58% for Class C, 2.84% for Class W, 2.63% for Class I and 3.13% for Class L shares. Class A shares are subject to a maximum sales load of 5.75% imposed on purchases. Class L shares are subject to a maximum sales load of 4.25% imposed on purchases. Repurchases of shares within 365 days of the purchase may be assessed an early withdrawal charge of 0.50% for Class A and 1.00% for Class C. For performance information current to the most recent month-end, please call toll-free 1-855-747-9559.

  

 

Semi-Annual Report | March 31, 2020     

 1

 

Resource Real Estate Diversified Income Fund

Portfolio Update

 

March 31, 2020 (Unaudited)

 

Comparison of the Change in Value of a $10,000 Investment

 

 

 

*Commencement of operations for Class A Shares.

 

Portfolio Composition as of March 31, 2020

 

Asset Type

Percent of Net Assets

Real Estate Investment Trusts - Common Equity

87.37%

Preferred Stocks

16.23%

Short Term Investment

4.26%

Bond & Notes

0.01%

Total Investments

107.87%

Other Assets in Excess of Liabilities

-7.87%

Net Assets

100.00%

 

Please see the Portfolio of Investments for a detailed listing of the Fund’s holdings.

 

 

2

www.resourcealts.com

 

Resource Real Estate Diversified Income Fund

Portfolio of Investments
 

March 31, 2020 (Unaudited)

 

 

Interest /Dividend Rate

 

 

Maturity

 

 

Principal

 

 

Value

 

BONDS & NOTES (0.01%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMERCIAL MORTGAGE-BACKED SECURITIES (0.01%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Morgan Stanley Capital I Trust, Class B(a)

 

 

5.538

%

 

 

02/12/2044

 

 

$

35,716

 

 

$

35,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL BONDS & NOTES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Cost $35,371)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35,115

 

 

 

  

 

 

        

Shares

 

 

Value

 

PREFERRED STOCKS (16.23%)

 

 

 

 

 

        

 

 

 

 

 

 

 

TRADED REAL ESTATE INVESTMENT TRUSTS (16.23%)

 

 

 

 

 

        

 

 

 

 

 

 

 

AGNC Investment Corp., Series E(b)

 

 

6.500

%

 

        

 

263,000

 

 

 

4,865,500

 

American Finance Trust, Inc., Series A(b)

 

 

7.500

%

 

        

 

185,000

 

 

 

3,305,950

 

American Homes 4 Rent, Series D(b)

 

 

6.500

%

 

        

 

109,703

 

 

 

2,595,573

 

Annaly Capital Management, Inc., Series F(b)

 

 

6.950

%

 

        

 

250,000

 

 

 

4,437,500

 

Brookfield Property Partners LP, Series A(b)

 

 

6.500

%

 

        

 

1,562

 

 

 

26,757

 

Brookfield Property Partners LP, Series A2(b)

 

 

6.375

%

 

        

 

207,025

 

 

 

3,299,979

 

Chimera Investment Corp., Series B(b)

 

 

8.000

%

 

        

 

120,000

 

 

 

1,743,600

 

Chimera Investment Corp., Series D(b)

 

 

8.000

%

 

        

 

100,000

 

 

 

1,489,000

 

City Office REIT, Inc., Series A(b)

 

 

6.625

%

 

        

 

45,000

 

 

 

775,800

 

Dynex Capital, Inc., Series B(b)

 

 

7.625

%

 

        

 

124,248

 

 

 

2,347,045

 

Global Medical REIT, Inc., Series A(b)

 

 

7.500

%

 

        

 

97,378

 

 

 

2,225,087

 

Global Net Lease, Inc., Series A(b)

 

 

7.250

%

 

        

 

59,203

 

 

 

1,200,341

 

Global Net Lease, Inc., Series B(b)

 

 

6.875

%

 

        

 

125,000

 

 

 

2,486,250

 

MFA Financial, Inc., Series C(b)

 

 

6.500

%

 

        

 

200,000

 

 

 

1,370,000

 

Monmouth Real Estate Investment Corp., Series C(b)

 

 

6.125

%

 

        

 

76,469

 

 

 

1,708,317

 

New Residential Investment Corp., Series A(b)

 

 

7.500

%

 

        

 

200,000

 

 

 

3,026,000

 

New Residential Investment Corp., Series C(b)

 

 

6.375

%

 

        

 

154,782

 

 

 

2,016,809

 

New York Mortgage Trust, Inc., Series C(b)

 

 

7.875

%

 

        

 

105,000

 

 

 

1,006,950

 

New York Mortgage Trust, Inc., Series E(b)

 

 

7.875

%

 

        

 

98,000

 

 

 

866,320

 

Pebblebrook Hotel Trust, Series F(b)

 

 

6.300

%

 

        

 

100,000

 

 

 

1,573,000

 

Sotherly Hotels, Inc., Series B(b)

 

 

8.000

%

 

        

 

119,650

 

 

 

776,529

 

Two Harbors Investment Corp., Series A(b)

 

 

8.125

%

 

        

 

150,000

 

 

 

2,466,000

 

Two Harbors Investment Corp., Series C(b)

 

 

7.250

%

 

        

 

110,000

 

 

 

1,688,500

 

UMH Properties, Inc., Series C(b)

 

 

6.750

%

 

        

 

160,000

 

 

 

3,124,624

 

 

 

 

 

 

 

        

 

 

 

 

 

 

 

TOTAL PREFERRED STOCKS

 

 

 

 

 

        

 

 

 

 

 

 

 

(Cost $78,092,353)

 

 

 

 

 

        

 

 

 

 

 

50,421,431

 

 

 

 

 

 

 

        

 

 

 

 

 

 

 

REAL ESTATE INVESTMENT TRUSTS - COMMON EQUITY (87.37%)

 

 

 

 

 

        

 

 

 

 

 

 

 

PUBLIC NON-TRADED REAL ESTATE INVESTMENT TRUSTS (0.78%)

 

 

 

 

 

        

 

 

 

 

 

 

 

InvenTrust Properties Corp.(a)(c)(d)

 

 

 

 

 

        

 

446,837

 

 

 

1,369,660

 

NorthStar Healthcare Income, Inc.(a)(c)(d)

 

 

 

 

 

        

 

168,566

 

 

 

1,048,098

 

 

 

 

 

 

 

        

 

 

 

 

 

2,417,758

 

PRIVATE REAL ESTATE INVESTMENT TRUSTS & PRIVATE INVESTMENT FUNDS (81.77%)

 

 

 

 

 

        

 

 

 

 

 

 

 

ACRES Capital Debt Opportunity Fund, LP(a)

 

 

 

 

 

        

 

12,133,660

 

 

 

11,985,355

 

Ares Real Estate Enhanced Income Fund(a)

 

 

 

 

 

        

 

N/A

 

 

 

8,674,904

 

Ares US Real Estate Fund IX(a)

 

 

 

 

 

        

 

N/A

 

 

 

7,180,502

 

Bain Capital Real Estate I-B, LP(a)

 

 

 

 

 

        

 

N/A

 

 

 

3,112,405

 

Broadstone Net Lease, Inc.(a)

 

 

 

 

 

        

 

23,529

 

 

 

1,832,941

 

Brookfield Premier Real Estate Partners(a)

 

 

 

 

 

        

 

10,302

 

 

 

14,340,527

 

 

See Notes to Financial Statements.

 

Semi-Annual Report | March 31, 2020

3

 

Resource Real Estate Diversified Income Fund

Portfolio of Investments
 

March 31, 2020 (Unaudited)

 

 

Shares

 

 

Value

 

PRIVATE REAL ESTATE INVESTMENT TRUSTS & PRIVATE INVESTMENT FUNDS (continued)

 

 

 

 

 

 

 

 

Brookfield Real Estate Finance Fund V(a)

 

 

N/A

 

 

$

11,320,600

 

Carlyle Property Investors L.P.(a)

 

 

10,632

 

 

 

13,980,748

 

Clarion Lion Industrial Trust(a)

 

 

7,908

 

 

 

17,294,047

 

Clarion Lion Properties Fund, LP(a)

 

 

11,258

 

 

 

17,528,887

 

Clarion Partners Debt Investment Fund, LP(a)

 

 

N/A

 

 

 

6,752,359

 

Clarion Ventures 4(a)

 

 

N/A

 

 

 

14,210,018

 

Harrison Street Core Property Fund(a)

 

 

11,210

 

 

 

15,853,655

 

Heitman Core Real Estate Debt Income Trust, LP(a)

 

 

24,624

 

 

 

25,213,451

 

Menlo Equities Absolute Return Fund(a)

 

 

14,050

 

 

 

15,411,384

 

Metlife Commercial Mortgage Income Fund, LP(a)

 

 

9,800

 

 

 

9,949,065

 

Nuveen US Core Plus Real Estate Debt Fund(a)

 

 

49

 

 

 

4,310,494

 

PGIM Real Estate US Debt Fund(a)

 

 

21,481

 

 

 

25,372,169

 

Prologis US Logistics Fund(a)

 

 

5,317

 

 

 

10,068,457

 

Sculptor Real Estate Credit Fund, LP(a)

 

 

N/A

 

 

 

6,626,880

 

Truman 2016 SC5, LLC(a)

 

 

N/A

 

 

 

766,809

 

UBS Trumbull Property Fund(a)

 

 

660

 

 

 

6,906,502

 

Voya Commercial Mortgage Lending Fund LP(a)

 

 

5,338

 

 

 

5,398,479

 

 

 

 

 

 

 

 

254,090,638

 

TRADED REAL ESTATE INVESTMENT TRUSTS (4.82%)

 

 

 

 

 

 

 

 

Ares Commercial Real Estate Corp.(b)

 

 

235,775

 

 

 

1,648,067

 

EPR Properties(b)

 

 

50,000

 

 

 

1,211,000

 

Kilroy Realty Corp.(b)

 

 

25,000

 

 

 

1,592,500

 

STAG Industrial, Inc.(b)

 

 

173,160

 

 

 

3,899,563

 

Starwood Property Trust, Inc.(b)

 

 

275,000

 

 

 

2,818,750

 

TPG RE Finance Trust, Inc.(b)

 

 

165,000

 

 

 

905,850

 

Ventas, Inc.(b)

 

 

108,000

 

 

 

2,894,400

 

 

 

 

 

 

 

 

14,970,130

 

 

 

 

 

 

 

 

 

 

TOTAL REAL ESTATE INVESTMENT TRUSTS - COMMON EQUITY

 

 

 

 

 

 

 

 

(Cost $267,556,491)

 

 

 

 

 

 

271,478,526

 

 

 

Shares

 

 

Value

 

SHORT TERM INVESTMENT (4.26%)

 

 

 

 

 

 

 

 

Dreyfus Treasury Cash Management, Institutional Class, 0.22%(e)

 

 

13,229,075

 

 

 

13,229,075

 

 

 

 

 

 

 

 

 

 

TOTAL SHORT TERM INVESTMENT

 

 

 

 

 

 

 

 

(Cost $13,229,075)

 

 

 

 

 

 

13,229,075

 

 

 

 

 

 

 

 

 

 

INVESTMENTS, AT VALUE (107.87%)

 

 

 

 

 

 

 

 

(Cost $358,913,290)

 

 

 

 

 

$

335,164,147

 

 

 

 

 

 

 

 

 

 

LINE OF CREDIT (-8.32%)

 

 

 

 

 

 

(25,836,647

)

Other Assets In Excess Of Liabilities (0.45%)

 

 

 

 

 

 

1,390,912

 

 

 

 

 

 

 

 

 

 

NET ASSETS (100.00%)

 

 

 

 

 

$

310,718,412

 

 

See Notes to Financial Statements.

 

4

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Resource Real Estate Diversified Income Fund

Portfolio of Investments
 

March 31, 2020 (Unaudited)

 

(a) Illiquid/restricted security. See chart below.
(b) All or a portion of each of these securities have been segregated as collateral for line of credit. The aggregate market value of those securities was $65,391,561.
(c) As a result of the use of significant unobservable inputs to determine fair value, these investments have been classified as Level 3 assets.
(d) Fair value estimated using fair valuation procedures adopted by the Board of Trustees.  Total value of such securities is $2,417,758, representing 0.78% of net assets.
(e) Money market fund; interest rate reflects seven-day effective yield on March 31, 2020.

 

See Notes to Financial Statements.

 

Semi-Annual Report | March 31, 2020

5

 

Resource Real Estate Diversified Income Fund Portfolio of Investments

 

March 31, 2020 (Unaudited)

 

Securities determined to be illiquid/restricted under the procedures approved by the Fund's Board of Trustees are as follows.

 

Date(s) of Purchase   Security  Cost   Value   % of Net
Assets		 
08/16/18 - 7/11/19   ACRES Capital Debt Opportunity Fund, LP  $12,000,000   $11,985,355    3.86%
02/22/19 - 03/04/20   Ares Real Estate Enhanced Income Fund   8,699,905    8,674,904    2.79%
12/14/18 - 03/24/20   Ares US Real Estate Fund IX   7,334,554    7,180,502    2.31%
11/14/18 - 03/24/20   Bain Capital Real Estate I-B, LP   3,025,424    3,112,405    1.00%
12/30/16   Broadstone Net Lease, Inc.   809,055    1,832,941    0.59%
10/01/19 - 12/30/19   Brookfield Premier Real Estate Partners   14,000,000    14,340,527    4.62%
06/26/17 - 01/17/20   Brookfield Real Estate Finance Fund V   11,663,067    11,320,600    3.64%
07/01/2019 - 10/01/19   Carlyle Property Investors L.P.   13,987,157    13,980,748    4.50%
01/01/14 - 12/30/19   Clarion Lion Industrial Trust   11,575,875    17,294,047    5.57%
01/01/14 - 05/31/19   Clarion Lion Properties Fund, LP   14,379,784    17,528,887    5.64%
02/14/17 - 05/21/19   Clarion Partners Debt Investment Fund, LP   6,868,221    6,752,359    2.17%
07/01/16 - 07/10/19   Clarion Ventures 4   9,793,571    14,210,018    4.57%
01/03/18 - 10/03/19   Harrison Street Core Property Fund   15,087,291    15,853,655    5.10%
07/27/17 - 11/13/17   Heitman Core Real Estate Debt Income Trust, LP   25,000,000    25,213,451    8.11%
02/06/15   InvenTrust Properties Corp.   1,321,089    1,369,660    0.44%
06/28/19   Menlo Equities Absolute Return Fund   16,000,000    15,411,384    4.96%
10/02/17 - 04/02/18   Metlife Commercial Mortgage Income Fund, LP   9,999,875    9,949,065    3.20%
03/04/14 - 12/15/15   Morgan Stanley Capital I Trust, Class B   35,371    35,115    0.01%
11/27/13 - 03/12/15   NorthStar Healthcare Income, Inc.   1,195,477    1,048,098    0.34%
05/31/19 - 02/28/20   Nuveen US Core Plus Real Estate Debt Fund   4,423,000    4,310,494    1.39%
07/31/17 - 03/29/18   PGIM Real Estate US Debt Fund   25,000,000    25,372,169    8.17%
01/03/20   Prologis US Logistics Fund   9,900,000    10,068,457    3.24%
06/28/17 - 03/23/20   Sculptor Real Estate Credit Fund, LP   7,126,177    6,626,880    2.13%
06/24/16 - 10/21/19   Truman 2016 SC5, LLC   244,929    766,809    0.25%
01/04/16 - 10/01/18   UBS Trumbull Property Fund   7,101,835    6,906,502    2.22%
10/11/19 - 12/30/19   Voya Commercial Mortgage Lending Fund LP   5,400,000    5,398,479    1.74%
    Total  $241,971,657   $256,543,511    82.56%

 

Additional information on investments in private real estate investment funds:

 

       Redemption  Redemption Notice     Unfunded Commitments as of March  
Security  Value   Frequency  (Days)   31, 2020 
ACRES Capital Debt Opportunity Fund, LP  $11,985,355   N/A   N/A   $– 
Ares Real Estate Enhanced Income Fund(a)   8,674,904   Quarterly   90    5,300,095 
Ares US Real Estate Fund IX   7,180,502   N/A   N/A    5,165,446 
Bain Capital Real Estate I-B, LP   3,112,405   N/A   N/A    7,217,735 
Broadstone Net Lease, Inc.   1,832,941   Quarterly   10    – 
Brookfield Premier Real Estate Partners   14,340,527   Quarterly   90    – 
Brookfield Real Estate Finance Fund V   11,320,600   N/A   N/A    13,053,855 
Carlyle Property Investors L.P.(b)   13,980,748   N/A   N/A    3,000,000 
Clarion Lion Industrial Trust   17,294,047   Quarterly   90    1,500,000 
Clarion Lion Properties Fund, LP   17,528,887   Quarterly   90    – 
Clarion Partners Debt Investment Fund, LP   6,752,359   N/A   N/A    5,158,972 
Clarion Ventures 4   14,210,018   N/A   N/A    963,242 
Harrison Street Core Property Fund   15,853,655   Quarterly   45    – 
Heitman Core Real Estate Debt Income Trust, LP(c)   25,213,451   Quarterly   90    – 
Menlo Equities Absolute Return Fund(d)   15,411,384   Annually   30    – 
Metlife Commercial Mortgage Income Fund, LP   9,949,065   Quarterly   90    – 
Nuveen US Core Plus Real Estate Debt Fund(e)   4,310,494   Quarterly   90    5,577,000 
PGIM Real Estate US Debt Fund   25,372,169   Quarterly   90    – 
Prologis US Logistics Fund   10,068,457   Quarterly   90    5,100,000 
Sculptor Real Estate Credit Fund, LP   6,626,880   N/A   N/A    14,371,099 

 

See Notes to Financial Statements.

 

6 www.resourcealts.com

 

 

Resource Real Estate Diversified Income Fund Portfolio of Investments

 

March 31, 2020 (Unaudited)

 

       Redemption  Redemption Notice     Unfunded Commitments as of March  
Security  Value   Frequency  (Days)   31, 2020 
Truman 2016 SC5, LLC  $766,809   N/A   N/A   $– 
UBS Trumbull Property Fund   6,906,502   Quarterly   60    – 
Voya Commercial Mortgage Lending Fund LP   5,398,479   N/A   N/A    – 

 

(a) Redemptions are subject to a two-year holding period from the underlying fund's initial capital call on December 17, 2018.
(b) Redemptions are subject to a two-year holding period from the underlying fund’s initial capital call on July 1, 2019.
(c) Redemptions are subject to a three-year holding period from the date of the underlying fund's initial close on July 27, 2017.
(d) Redemptions are subject to a two-year holding period from the underlying fund’s initial capital call on June 28, 2019.
(e) Redemptions are subject to a two-year holding period from the underlying fund’s initial capital call on May 31, 2019.

 

See Notes to Financial Statements.

 

Semi-Annual Report | March 31, 2020 7

 

 

Resource Real Estate Diversified Income Fund Statement of Assets
and Liabilities

 

March 31, 2020 (Unaudited)

 

ASSETS     
Investments, at value (Cost $358,913,290)  $335,164,147 
Cash   489,634 
Dividends and interest receivable   1,452,099 
Receivable for investments sold   2,200,446 
Receivable for fund shares sold   37,074 
Prepaid expenses and other assets   116,293 
Total assets   339,459,693 
      
LIABILITIES     
Line of credit payable   25,836,647 
Interest on line of credit payable   1,352 
Payable for investments purchased   2,200,445 
Payable due to adviser   326,664 
Administration fees payable   35,493 
Custody fees payable   35,395 
Payable for trustee fees and expenses   439 
Payable for compliance services fees   16,673 
Distribution and dealer manager fees payable   51,345 
Shareholder servicing fees payable   52,364 
Payable for transfer agency fees   11,083 
Accrued expenses and other liabilities   173,381 
Total liabilities   28,741,281 
NET ASSETS  $310,718,412 
      
NET ASSETS CONSISTS OF     
Paid-in capital  $327,416,305 
Total distributable earnings   (16,697,893)
NET ASSETS  $310,718,412 
      
PRICING OF SHARES     
Class A     
Net Assets  $96,069,473 
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)   10,486,142 
Net Asset Value and redemption price per share(a)  $9.16 
Maximum Offering Price Per Share (Maximum Sales Charge of 5.75%)  $9.72 
Class C     
Net Assets  $75,325,624 
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)   8,223,868 
Net Asset Value, offering and redemption price per share(a)  $9.16 
Class W     
Net Assets  $58,805,998 
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)   6,322,181 
Net Asset Value, offering and redemption price per share  $9.30 
Class I     
Net Assets  $74,912,504 
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)   7,848,130 
Net Asset Value, offering and redemption price per share  $9.55 
Class L     
Net Assets  $5,604,813 
Shares of beneficial interest outstanding (unlimited number of shares, no par value common stock authorized)   611,621 
Net Asset Value and redemption price per share  $9.16 
Maximum Offering Price Per Share (Maximum Sales Charge of 4.25%)  $9.57 

 

(a) Redemption price varies based on length of time held (Note 1).

 

See Notes to Financial Statements.

 

8 www.resourcealts.com

 

 

Resource Real Estate Diversified Income Fund Statement of Operations

 

For the Six Months Ended March 31, 2020 (Unaudited)

 

INVESTMENT INCOME    
Dividends(a)  $9,601,686 
Interest   355,625 
Total investment income   9,957,311 
      
EXPENSES     
Investment advisory fees (Note 3)   2,195,686 
Administrative fees (Note 3)   167,079 
Distribution fees (Note 3):     
Class C   301,638 
Class T(b)   10,950 
Class L   10,343 
Shareholder servicing fees (Note 3):     
Class A   129,286 
Class C   100,546 
Class W   96,487 
Class U(c)   4,726 
Class T(b)   3,650 
Class D(b)   3,227 
Class L   10,343 
Dealer manager fees (Note 3):     
Class D(b)   6,454 
Interest expense (Note 8)   573,450 
Dividend expense on securities sold short   1,062,023 
Transfer agent fees (Note 3)   180,040 
Audit fees   14,012 
Legal fees   55,727 
Printing expense   54,193 
Registration fees   51,255 
Custody fees   81,053 
Trustee fees and expenses (Note 3)   33,139 
Compliance services fees (Note 3)   100,000 
Networking Fees:     
Class A   22,931 
Class C   14,680 
Class W   8,344 
Class I   8,200 
Class L   1,757 
Other expenses   61,082 
Total expenses   5,362,301 
Less fees waived by investment adviser (Note 3)   (20,503)
Recoupment of previously waived fees (Note 3)   25,486 
Total net expenses   5,367,284 
NET INVESTMENT INCOME   4,590,027 
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS     
Net realized gain on investments   9,751,990 
Net realized loss on written options   (325,501)
Total net realized gain   9,426,489 
Net change in unrealized depreciation on investments   (51,697,989)
Net change in unrealized appreciation on written options   247,584 
Total net change in unrealized depreciation   (51,450,405)
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS   (42,023,916)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS  $(37,433,889)

 

(a) Net of foreign tax withholding in the amount of $1,288.
(b) Effective as of February 3, 2020, the Fund has suspended the offering of its Class D and Class T shares.
(c) Effective as of January 15, 2020, the Fund has suspended the offering of its Class U shares.

 

See Notes to Financial Statements.

 

Semi-Annual Report | March 31, 2020 9

 

 

 

 

Resource Real Estate Diversified Income Fund Statements of Changes
in Net Assets

 

 

   For the Six Months
Ended
March 31, 2020
(Unaudited)		   For the
Year Ended
September 30, 2019		 
OPERATIONS        
Net investment income  $4,590,027   $11,154,521 
Net realized gain   9,426,489    7,880,053 
Net change in unrealized appreciation/(depreciation)   (51,450,405)   5,488,048 
Net increase/(decrease) in net assets resulting from operations   (37,433,889)   24,522,622 
           
DISTRIBUTIONS TO SHAREHOLDERS          
Total Distributable Earnings          
Class A   (4,306,994)   (3,994,204)
Class C   (3,003,247)   (2,618,689)
Class W   (2,685,115)   (3,730,424)
Class I   (3,464,115)   (1,835,557)
Class U(a)   (62)   (445,458)
Class T(b)   (327)   (248,861)
Class D(b)   (787)   (255,121)
Class L   (240,536)   (330,150)
From return of capital:          
Class A   –    (1,153,777)
Class C   –    (747,260)
Class W   –    (1,104,767)
Class I   –    (519,261)
Class U(a)   –    (133,691)
Class T(b)   –    (78,236)
Class D(b)   –    (73,525)
Class L   –    (93,724)
Net decrease in net assets from distributions   (13,701,183)   (17,362,705)
           
CAPITAL SHARE TRANSACTIONS          
Class A          
Proceeds from sales of shares   6,191,817    13,039,162 
Distributions reinvested   1,791,131    2,516,605 
Cost of shares redeemed   (5,891,734)   (8,132,489)
Net Transferred in/(out)   13,708,647    (218,915)
Net increase from capital shares transactions   15,799,861    7,204,363 
           
Class C          
Proceeds from sales of shares   7,611,842    14,689,128 
Distributions reinvested   1,649,786    2,037,232 
Cost of shares redeemed   (2,991,496)   (4,235,609)
Net Transferred in/(out)   6,785,237    (1,764,422)
Net increase from capital shares transactions   13,055,369    10,726,329 
           
Class W          
Proceeds from sales of shares   5,459,389    27,638,555 
Distributions reinvested   1,549,309    2,974,798 
Cost of shares redeemed   (7,685,664)   (5,313,340)
Net Transferred in/(out)   (22,885,221)   (4,687,265)
Net increase/(decrease) from capital shares transactions   (23,562,187)   20,612,748 
           
Class I          
Proceeds from sales of shares   10,890,442    26,092,038 
Distributions reinvested   1,324,612    1,443,152 
Cost of shares redeemed   (9,882,022)   (1,965,835)
Net Transferred in/(out)   29,833,292    6,223,099 
Net increase from capital shares transactions   32,166,324    31,792,454 
           
Class U(a)          
Distributions reinvested   62    193,216 
Cost of shares redeemed   (463,360)   (1,808,920)
Net Transferred in/(out)   (8,915,849)   (618,052)
Net decrease from capital shares transactions   (9,379,147)   (2,233,756)

 

See Notes to Financial Statements.

 

10 www.resourcealts.com

 

 

Resource Real Estate Diversified Income Fund

Statements of Changes
in Net Assets (continued)

 

 

 

 

For the Six Months Ended March 31, 2020 (Unaudited)

 

 

For the Year Ended September 30, 2019

 

Class T(b)

 

 

 

 

 

 

 

 

Distributions reinvested

 

$

327

 

 

$

183,528

 

Cost of shares redeemed

 

 

(81,032

)

 

 

(341,048

)

Net Transferred in/(out)

 

 

(6,994,765

)

 

 

1,556,738

 

Net increase/(decrease) from capital shares transactions

 

 

(7,075,470

)

 

 

1,399,218

 

Class D(b)

 

 

 

 

 

 

 

 

Distributions reinvested

 

 

–

 

 

 

186,784

 

Cost of shares redeemed

 

 

(46,904

)

 

 

(374,820

)

Net Transferred in/(out)

 

 

(6,128,502

)

 

 

(482,114

)

Net decrease from capital shares transactions

 

 

(6,175,406

)

 

 

(670,150

)

Class L

 

 

 

 

 

 

 

 

Proceeds from sales of shares

 

 

1,502,059

 

 

 

5,532,741

 

Distributions reinvested

 

 

114,857

 

 

 

193,991

 

Cost of shares redeemed

 

 

(90,888

)

 

 

(116,546

)

Net Transferred in/(out)

 

 

(5,402,839

)

 

 

(9,069

)

Net increase/(decrease) from capital shares transactions

 

 

(3,876,811

)

 

 

5,601,117

 

Net increase/(decrease) in net assets

 

 

(40,182,539

)

 

 

81,592,240

 

 

 

 

  

 

 

 

  

 

NET ASSETS

 

 

 

 

 

 

 

 

Beginning of period

 

 

350,900,951

 

 

 

269,308,711

 

End of period

 

$

310,718,412

 

 

$

350,900,951

 

 

 

 

  

 

 

 

  

 

OTHER INFORMATION

 

 

 

 

 

 

 

 

Capital Shares Transactions

 

 

 

 

 

 

 

 

Class A

 

 

 

 

 

 

 

 

Issued

 

 

584,206

 

 

 

1,248,889

 

Distributions reinvested

 

 

180,873

 

 

 

243,649

 

Redeemed

 

 

(554,723

)

 

 

(780,112

)

Net Transferred in/(out)

 

 

1,281,107

 

 

 

(21,132

)

Net increase in capital shares

 

 

1,491,463

 

 

 

691,294

 

 

 

 

  

 

 

 

  

 

Class C

 

 

 

 

 

 

 

 

Issued

 

 

719,677

 

 

 

1,404,406

 

Distributions reinvested

 

 

166,474

 

 

 

197,254

 

Redeemed

 

 

(281,500

)

 

 

(406,869

)

Net Transferred in/(out)

 

 

635,245

 

 

 

(168,104

)

Net increase in capital shares

 

 

1,239,896

 

 

 

1,026,687

 

 

 

 

  

 

 

 

  

 

Class W

 

 

 

 

 

 

 

 

Issued

 

 

506,310

 

 

 

2,609,999

 

Distributions reinvested

 

 

153,756

 

 

 

283,477

 

Redeemed

 

 

(712,587

)

 

 

(500,980

)

Net Transferred in/(out)

 

 

(2,106,414

)

 

 

(438,774

)

Net increase/(decrease) in capital shares

 

 

(2,158,935

)

 

 

1,953,722

 

 

 

 

  

 

 

 

  

 

Class I

 

 

 

 

 

 

 

 

Issued

 

 

986,021

 

 

 

2,390,258

 

Distributions reinvested

 

 

127,582

 

 

 

133,482

 

Redeemed

 

 

(892,581

)

 

 

(181,120

)

Net Transferred in/(out)

 

 

2,674,998

 

 

 

568,635

 

Net increase in capital shares

 

 

2,896,020

 

 

 

2,911,255

 

 

 

 

  

 

 

 

  

 

Class U(a)

 

 

 

 

 

 

 

 

Distributions reinvested

 

 

79

 

 

 

18,718

 

Redeemed

 

 

(43,422

)

 

 

(172,998

)

Net Transferred in/(out)

 

 

(833,259

)

 

 

(58,972

)

Net decrease in capital shares

 

 

(876,602

)

 

 

(213,252

)

 

See Notes to Financial Statements. 

 

Semi-Annual Report | March 31, 2020

11

 

 

 

Statements of Changes

Resource Real Estate Diversified Income Fund

in Net Assets (continued)
 

 

 

 

For the Six Months Ended March 31, 2020 (Unaudited)

 

 

For the Year Ended September 30, 2019

 

OTHER INFORMATION

 

 

 

 

 

 

 

 

Capital Shares Transactions

 

 

 

 

 

 

 

 

Class T(b)

 

 

 

 

 

 

 

 

Distributions reinvested

 

 

92

 

 

 

17,735

 

Redeemed

 

 

(7,671

)

 

 

(32,736

)

Net Transferred in/(out)

 

 

(656,168

)

 

 

148,576

 

Net increase/(decrease) in capital shares

 

 

(663,747

)

 

 

133,575

 

 

 

 

 

 

 

 

 

 

Class D(b)

 

 

 

 

 

 

 

 

Distributions reinvested

 

 

–

 

 

 

17,828

 

Redeemed

 

 

(4,337

)

 

 

(35,293

)

Net Transferred in/(out)

 

 

(564,842

)

 

 

(45,610

)

Net decrease in capital shares

 

 

(569,179

)

 

 

(63,075

)

 

 

 

 

 

 

 

 

 

Class L

 

 

 

 

 

 

 

 

Issued

 

 

140,643

 

 

 

526,390

 

Distributions reinvested

 

 

11,582

 

 

 

18,625

 

Redeemed

 

 

(8,566

)

 

 

(11,167

)

Net Transferred in/(out)

 

 

(505,411

)

 

 

(875

)

Net increase/(decrease) in capital shares

 

 

(361,752

)

 

 

532,973

 

 

(a) 

Effective as of January 15, 2020, the Fund has suspended the offering of its Class U shares.

(b) 

Effective as of February 3, 2020, the Fund has suspended the offering of its Class D and Class T shares.

 

See Notes to Financial Statements. 

 

12

www.resourcealts.com

 

 

Resource Real Estate Diversified Income Fund

Statement of Cash Flows
 

For the Six Months Ended March 31, 2020 (Unaudited)

 

CASH FLOWS FROM OPERATING ACTIVITIES:        
Net decrease in net assets from operations   $ (37,433,889 )
Adjustments to reconcile net increase/(decrease) in net assets resulting from operations to net cash provided by operating activities:        
Purchase of investment securities     (112,574,464 )
Proceeds from sale of investment securities     142,134,594  
Purchase of option contracts     (972,335 )
Proceeds from sale of option contracts     107,722  
Premiums received from written options transactions     936,738  
Premiums paid from closing written options transactions     (2,878,406 )
Net (purchase) proceeds from short-term investment securities     (11,013,406 )
Amortization of discount and accretion of discount on investments     (7 )
Net realized (gain)/loss on:        
Investments     (9,751,990 )
Written options     325,501  
Net change in unrealized (appreciation)/depreciation on:        
Investments     51,697,989  
Written options     (247,584 )
(Increase)/Decrease in assets:        
Dividends and interest receivable     2,071,074  
Prepaid expenses and other assets     (86,646 )
Increase/(Decrease) in liabilities:        
Interest on line of credit payable     (158,823 )
Payable due to adviser     (13,797 )
Administration fees payable     (26,999 )
Custody fees payable     10,786  
Shareholder servicing fees payable     (7,537 )
Payable for trustee fees and expenses     439  
Payable for compliance services fees     5  
Distribution and dealer manager fees payable     (2,929 )
Payable for transfer agency fees     (43,616 )
Accrued expenses and other liabilities     (2,778 )
Net cash provided by operating activities     22,069,642  
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Net Payments on line of credit     (17,645,685 )
Proceeds from sale of shares     31,912,291  
Cost of shares redeemed     (27,133,100 )
Decrease in payable to custodian     (1,555,642 )
Cash distributions paid     (7,271,099 )
Net cash used in financing activities     (21,693,235 )
         
Net Change in cash & cash equivalents     376,407  
         
Restricted and unrestricted cash, beginning of year   $ 113,227  
Restricted and unrestricted cash, end of year   $ 489,634  
         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:        
Non-cash financing activities not included herin consist of reinvestment of distributions of:   $ 6,430,084  
Cash paid for interest on line of credit during the year was:   $ 732,273  
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR TO THE STATEMENT OF ASSETS AND LIABILITIES        
Cash   $ –  
Due from broker        
Written options   $ 113,227  
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF YEAR TO THE STATEMENT OF ASSETS AND LIABILITIES        
Cash   $ 489,634  
Due from broker        
Written options   $ –  

 

See Notes to Financial Statements.

 

Semi-Annual Report | March 31, 2020

13

 

 

Resource Real Estate Diversified Income Fund – Class A

Financial Highlights
 

For a Share Outstanding Throughout the Years or Periods Presented

 

 

 

For the Six Months Ended March 31, 2020 (Unaudited)

 

 

Year Ended September 30, 2019

 

 

Year Ended September 30, 2018

 

 

Year Ended September 30, 2017

 

 

Year Ended September 30, 2016

 

 

For the Period Ended September 30, 2015(a)

 

NET ASSET VALUE, BEGINNING OF YEAR OR PERIOD

 

$

10.69

 

 

$

10.47

 

 

$

10.19

 

 

$

10.26

 

 

$

9.81

 

 

$

10.52

 

INCOME FROM INVESTMENT OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income(b)(c)

 

 

0.15

 

 

 

0.40

 

 

 

0.30

 

 

 

0.39

 

 

 

0.34

 

 

 

0.21

 

Net realized and unrealized gain/(loss) on investments

 

 

(1.38

)

 

 

0.42

 

 

 

0.58

 

 

 

0.17

 

 

 

0.71

 

 

 

(0.47

)

Total income/(loss) from investment operations

 

 

(1.23

)

 

 

0.82

 

 

 

0.88

 

 

 

0.56

 

 

 

1.05

 

 

 

(0.26

)

DISTRIBUTIONS TO SHAREHOLDERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From net investment income

 

 

(0.30

)

 

 

(0.26

)

 

 

(0.24

)

 

 

(0.31

)

 

 

(0.32

)

 

 

(0.17

)

From net realized gain on investments

 

 

–

 

 

 

(0.21

)

 

 

(0.15

)

 

 

(0.12

)

 

 

–

 

 

 

(0.03

)

From return of capital

 

 

–

 

 

 

(0.13

)

 

 

(0.21

)

 

 

(0.20

)

 

 

(0.28

)

 

 

(0.25

)

Total distributions

 

 

(0.30

)

 

 

(0.60

)

 

 

(0.60

)

 

 

(0.63

)

 

 

(0.60

)

 

 

(0.45

)

INCREASE/DECREASE IN NET ASSET VALUE

 

 

(1.53

)

 

 

0.22

 

 

 

0.28

 

 

 

(0.07

)

 

 

0.45

 

 

 

(0.71

)

NET ASSET VALUE, END OF YEAR OR PERIOD

 

$

9.16

 

 

$

10.69

 

 

$

10.47

 

 

$

10.19

 

 

$

10.26

 

 

$

9.81

 

TOTAL RETURN(d)(e)

 

 

(10.73

)%

 

 

8.17

%

 

 

9.00

%

 

 

5.67

%

 

 

11.09

%

 

 

(2.50

)%

RATIOS AND SUPPLEMENTAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets, end of year or period (in 000s)

 

$

96,069

 

 

$

96,114

 

 

$

86,965

 

 

$

84,231

 

 

$

61,470

 

 

$

37,399

 

RATIOS TO AVERAGE NET ASSETS(f)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Including interest and dividend expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses, gross

 

 

2.89

%(g)

 

 

2.90

%

 

 

2.97

%

 

 

2.90

%

 

 

2.78

%

 

 

3.30

%(g)

Expenses, net of fees waived/expenses reimbursed by investment adviser

 

 

2.88

%(g)

 

 

2.83

%

 

 

2.76

%

 

 

2.69

%

 

 

2.39

%

 

 

2.24

%(g)

Excluding interest and dividend expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses, gross

 

 

2.00

%(g)

 

 

2.06

%

 

 

2.20

%

 

 

2.20

%

 

 

2.38

%

 

 

3.05

%(g)

Expenses, net of fees waived/expenses reimbursed by investment adviser

 

 

1.99

%(g)

 

 

1.99

%

 

 

1.99

%

 

 

1.99

%

 

 

1.99

%

 

 

1.99

%(g)

Net investment income(c)

 

 

2.77

%(g)

 

 

3.83

%

 

 

2.97

%

 

 

3.81

%

 

 

3.47

%

 

 

3.57

%(g)

PORTFOLIO TURNOVER RATE

 

 

28

%(h)

 

 

65

%

 

 

78

%

 

 

11

%

 

 

21

%

 

 

5

%(h)

BORROWINGS AT END OF YEAR OR PERIOD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aggregate amount outstanding (000s)

 

$

25,837

 

 

$

43,482

 

 

$

48,104

 

 

$

60,415

 

 

$

36,821

 

 

$

12,373

 

Asset coverage per $1,000 (000s)

 

$

13,026

 

 

$

9,070

 

 

$

6,515

 

 

$

4,912

 

 

$

4,808

 

 

$

6,249

 

 

(a) 

With the approval of the Board of Trustees, effective September 30, 2015, the Fund’s fiscal year end was changed from February 28 to September 30.

(b) 

Per share numbers have been calculated using the average shares method.

(c) 

Recognition of net investment income is affected by timing and declaration of dividends by underlying REITs and private investment funds.

(d) 

Total returns shown are historical in nature and assume changes in share price, reinvestment of dividends and capital gains distribution, if any. Had the Adviser not absorbed a portion of Fund expenses, total returns would have been lower. Total returns for periods less than one year are not annualized. Returns shown exclude applicable sales charges.

(e) 

Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from net asset values and returns for shareholder transactions.

(f) 

Ratios do not include expenses of underlying investment companies and private investment funds in which the Fund invests.

(g) 

Annualized.

(h) 

Not annualized.

 

See Notes to Financial Statements. 

 

14

www.resourcealts.com

 

 

Resource Real Estate Diversified Income Fund – Class C

Financial Highlights
 

For a Share Outstanding Throughout the Years or Periods Presented

 

 

 

For the Six
Months Ended
March 31, 2020
(Unaudited)

 

 

Year Ended
September 30,
2019

 

 

Year Ended
September 30,
2018

 

 

Year Ended
September 30,
2017

 

 

Year Ended
September 30,
2016

 

 

For the Period
Ended

September 30,
2015(a)

 

NET ASSET VALUE, BEGINNING OF YEAR OR PERIOD

 

$

10.68

 

 

$

10.47

 

 

$

10.19

 

 

$

10.25

 

 

$

9.81

 

 

$

10.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM INVESTMENT OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income(b)(c)

 

 

0.10

 

 

 

0.32

 

 

 

0.23

 

 

 

0.32

 

 

 

0.28

 

 

 

0.18

 

Net realized and unrealized gain/(loss) on investments

 

 

(1.36

)

 

 

0.41

 

 

 

0.57

 

 

 

0.18

 

 

 

0.68

 

 

 

(0.48

)

Total income/(loss) from investment operations

 

 

(1.26

)

 

 

0.73

 

 

 

0.80

 

 

 

0.50

 

 

 

0.96

 

 

 

(0.30

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From net investment income

 

 

(0.26

)

 

 

(0.22

)

 

 

(0.20

)

 

 

(0.27

)

 

 

(0.27

)

 

 

(0.14

)

From net realized gain on investments

 

 

–

 

 

 

(0.18

)

 

 

(0.14

)

 

 

(0.12

)

 

 

–

 

 

 

(0.03

)

From return of capital

 

 

–

 

 

 

(0.12

)

 

 

(0.18

)

 

 

(0.17

)

 

 

(0.25

)

 

 

(0.22

)

Total distributions

 

 

(0.26

)

 

 

(0.52

)

 

 

(0.52

)

 

 

(0.56

)

 

 

(0.52

)

 

 

(0.39

)

INCREASE/DECREASE IN NET ASSET VALUE

 

 

(1.52

)

 

 

0.21

 

 

 

0.28

 

 

 

(0.06

)

 

 

0.44

 

 

 

(0.69

)

NET ASSET VALUE, END OF YEAR OR PERIOD

 

$

9.16

 

 

$

10.68

 

 

$

10.47

 

 

$

10.19

 

 

$

10.25

 

 

$

9.81

 

TOTAL RETURN(d)(e)

 

 

(10.98

)%

 

 

7.24

%

 

 

8.17

%

 

 

4.97

%

 

 

10.15

%

 

 

(2.86

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIOS AND SUPPLEMENTAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets, end of year or period (in 000s)

 

$

75,326

 

 

$

74,609

 

 

$

62,367

 

 

$

57,559

 

 

$

33,114

 

 

$

13,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIOS TO AVERAGE NET ASSETS(f)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Including interest and dividend expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses, gross

 

 

3.64

%(g)

 

 

3.64

%

 

 

3.73

%

 

 

3.71

%

 

 

3.53

%

 

 

4.04

%(g)

Expenses, net of fees waived/expenses reimbursed by investment adviser

 

 

3.63

%(g)

 

 

3.58

%

 

 

3.51

%

 

 

3.47

%

 

 

3.14

%

 

 

2.99

%(g)

Excluding interest and dividend expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses, gross

 

 

2.74

%(g)

 

 

2.80

%

 

 

2.96

%

 

 

2.98

%

 

 

3.13

%

 

 

3.79

%(g)

Expenses, net of fees waived/expenses reimbursed by investment adviser

 

 

2.74

%(g)

 

 

2.74

%

 

 

2.74

%

 

 

2.74

%

 

 

2.74

%

 

 

2.74

%(g)

Net investment income(c)

 

 

2.01

%(g)

 

 

3.08

%

 

 

2.24

%

 

 

3.11

%

 

 

2.87

%

 

 

2.97

%(g)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PORTFOLIO TURNOVER RATE

 

 

28

%(h)

 

 

65

%

 

 

78

%

 

 

11

%

 

 

21

%

 

 

5

%(h)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BORROWINGS AT END OF YEAR OR PERIOD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aggregate amount outstanding (000s)

 

$

25,837

 

 

$

43,482

 

 

$

48,104

 

 

$

60,415

 

 

$

36,821

 

 

$

12,373

 

Asset coverage per $1,000 (000s)

 

$

13,026

 

 

$

9,070

 

 

$

6,515

 

 

$

4,912

 

 

$

4,808

 

 

$

6,249

 

 

(a)With the approval of the Board of Trustees, effective September 30, 2015, the Fund’s fiscal year end was changed from February 28 to September 30.
(b)Per share numbers have been calculated using the average shares method.
(c)Recognition of net investment income is affected by timing and declaration of dividends by underlying REITs and private investment funds.
(d)Total returns shown are historical in nature and assume changes in share price, reinvestment of dividends and capital gains distribution, if any. Had the Adviser not absorbed a portion of Fund expenses, total returns would have been lower. Total returns for periods less than one year are not annualized.
(e)Includes adjustments in accordance with accounting principles generally accepted in the United States of America and, as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from net asset values and returns for shareholder transactions.
(f)Ratios do not include expenses of underlying investment companies and private investment funds in which the Fund invests.
(g)Annualized.
(h)Not annualized.

 

See Notes to Financial Statements.

 

Semi-Annual Report | March 31, 2020

15

 

 

Resource Real Estate Diversified Income Fund – Class W

Financial Highlights
 

For a Share Outstanding Throughout the Years or Periods Presented

 

 

 

For the Six
Months Ended
March 31, 2020
(Unaudited)

 

 

Year Ended
September 30,
2019

 

 

Year Ended September 30,
2018

 

 

Year Ended September 30,
2017

 

 

Year Ended September 30,
2016

 

 

For the
Period Ended
September 30,
2015(a)

 

NET ASSET VALUE, BEGINNING OF YEAR OR PERIOD

 

$

10.85

 

 

$

10.63

 

 

$

10.35

 

 

$

10.41

 

 

$

9.96

 

 

$

10.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM INVESTMENT OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income(b)(c)

 

 

0.14

 

 

 

0.41

 

 

 

0.31

 

 

 

0.39

 

 

 

0.32

 

 

 

0.20

 

Net realized and unrealized gain/(loss) on investments

 

 

(1.39

)

 

 

0.42

 

 

 

0.58

 

 

 

0.17

 

 

 

0.69

 

 

 

(0.49

)

Total income/(loss) from investment operations

 

 

(1.25

)

 

 

0.83

 

 

 

0.89

 

 

 

0.56

 

 

 

1.01

 

 

 

(0.29

)

DISTRIBUTIONS TO SHAREHOLDERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From net investment income

 

 

(0.30

)

 

 

(0.26

)

 

 

(0.23

)

 

 

(0.30

)

 

 

(0.30

)

 

 

(0.15

)

From net realized gain on investments

 

 

–

 

 

 

(0.21

)

 

 

(0.16

)

 

 

(0.12

)

 

 

–

 

 

 

(0.03

)

From return of capital

 

 

–

 

 

 

(0.14

)

 

 

(0.22

)

 

 

(0.20

)

 

 

(0.26

)

 

 

(0.24

)

Total distributions

 

 

(0.30

)

 

 

(0.61

)

 

 

(0.61

)

 

 

(0.62

)

 

 

(0.56

)

 

 

(0.42

)

INCREASE/DECREASE IN NET ASSET VALUE

 

 

(1.55

)

 

 

0.22

 

 

 

0.28

 

 

 

(0.06

)

 

 

0.45

 

 

 

(0.71

)

NET ASSET VALUE, END OF YEAR OR PERIOD

 

$

9.30

 

 

$

10.85

 

 

$

10.63

 

 

$

10.35

 

 

$

10.41

 

 

$

9.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL RETURN(d)(e)

 

 

(10.70

)%

 

 

8.13

%

 

 

8.95

%

 

 

5.64

%

 

 

10.46

%

 

 

(2.79

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIOS AND SUPPLEMENTAL DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets, end of year or period (in 000s)

 

$

58,806

 

 

$

92,006

 

 

$

69,400

 

 

$

56,427

 

 

$

31,076

 

 

$

11,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIOS TO AVERAGE NET ASSETS(f)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Including interest and dividend expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses, gross

 

 

3.01

%(g)

 

 

2.88

%

 

 

2.96

%

 

 

3.06

%

 

 

3.30

%

 

 

3.78

%(g)

Expenses, net of fees waived/expenses reimbursed by investment adviser

 

 

3.02

%(g)

 

 

2.84

%

 

 

2.76

%

 

 

2.83

%(h)

 

 

2.89

%

 

 

2.74

%(g)

Excluding interest and dividend expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses, gross

 

 

1.97

%(g)

 

 

2.03

%

 

 

2.19

%

 

 

2.32

%

 

 

2.90

%

 

 

3.53

%(g)

Expenses, net of fees waived/expenses reimbursed by investment adviser

 

 

1.99

%(g)

 

 

1.99

%

 

 

1.99

%

 

 

2.09

%(h)

 

 

2.49

%

 

 

2.49

%(g)

Net investment income(c)

 

 

2.64

%(g)

 

 

3.85

%

 

 

3.01

%

 

 

3.79

%

 

 

3.17

%

 

 

3.28

%(g)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PORTFOLIO TURNOVER RATE

 

 

28

%(i)

 

 

65

%

 

 

78

%

 

 

11

%

 

 

21

%

 

 

5

%(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BORROWINGS AT END OF YEAR OR PERIOD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aggregate amount outstanding (000s)

 

$

25,837

 

 

$

43,482

 

 

$

48,104

 

 

$

60,415

 

 

$

36,821

 

 

$

12,373

 

Asset coverage per $1,000 (000s)

 

$

13,026

 

 

$

9,070