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Date: August 2, 2017
Category: Alternative Investments

Alternatives and Your Portfolio: Is Your Money Growing?

Alternative investment capital growthThere are few finer pleasures than watching your portfolio grow, knowing that your money is hard at work making more money. But looking ahead, do you ever worry about future capital growth?

We’re still riding an eight-year bull market, and even optimistic experts note that some stocks look a little overvalued.1 And even if there is no correction in the future, there’s certainly open discussion about how much higher stocks can go.

At the same time, interest rates are starting to normalize after a decade of rock-bottom levels, which has the potential to push down bond prices. This could have a knock-on effect on your portfolio.

One potential way to help find future growth is through an allocation to alternative investments. Alternatives include long-term investments in hard assets like real estate or infrastructure, which historically have become more valuable over time.

Alternatives are also generally less liquid than bonds and equities, which means that they may offer a liquidity premium.2 Typically, investors in illiquid assets pay less for a given cash flow than they would if they were investing in a liquid asset. So, for a given dollar investment, an investor in illiquid assets usually earns a higher return, which is the liquidity premium. This means a liquidity premium may help boost your total returns over time.

As you can see, the portfolio with alternatives experienced higher total returns.

Total return portfolio with alternative investments

* Past performance is no guarantee of future results.

The Bottom Line:

Alternatives may help your money work harder for you.

1 Forbes. A Closer Look at Valuations: Is the Stock Market Overvalued? 6/19/17.

2 For example, interval funds offer quarterly liquidity. Typically, no less than 5% of the shares outstanding will be made available for quarterly redemptions. Regardless of how the interval fund performs, there is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer.

Resource is the marketing name for Resource Real Estate, LLC, Resource Alternative Advisor, LLC, and their affiliates. Resource may distribute certain products through Resource Securities LLC, a wholly owned broker/dealer, Member FINRA/SIPC


The information contained herein does not constitute an offer to sell or a solicitation to purchase securities. Such offers or solicitations can only be made by means of a prospectus. Prior to making any investment decision, you should read the applicable prospectus carefully and consider the risks, charges, expenses and other important information described therein. The value of your investments may decline, and you could lose some or all of your investment. To obtain a prospectus containing this and other information, please call (866) 773-4120 or download the file from Read the prospectus carefully before you invest.


Resource has an interval fund that is distributed by ALPS Distributors, Inc. (ALPS Distributors, Inc. 1290 Broadway, Suite 1100, Denver, CO 80203). Resource Alternative Advisor, LLC, Resource Real Estate, LLC, their affiliates, and ALPS Distributors, Inc. are not affiliated.


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


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