What you’re actually buying
Supervest Notes (private notes): A fixed-rate note with a stated coupon, payment frequency, and maturity—typically 12, 24, or 36 months. (Accrual begins on the Effective Date defined in the documents.)
REITs: Equity or mortgage exposure to real estate; distributions depend on rents, interest income, leverage, and expenses.
Interval Funds: Diversified portfolios (often private credit/alt income) with NAV-based pricing and periodic repurchases.
Head-to-head comparison
| Feature | Supervest Notes | REITs (public/private) | Interval Funds |
| Primary goal | Defined income over a set term | Total return + income from real estate | Income + diversification via a managed portfolio |
| Income mechanics | Fixed coupon; schedule set in docs (often monthly for 12M, quarterly for 24M/36M) | Dividends vary with portfolio cash flows | Distributions from income; NAV may change |
| Liquidity | Generally hold to maturity (no daily liquidity) | Public: daily trading (price volatility); Private: sponsor redemption policies | Periodic repurchase windows (quota-limited) |
| Pricing/valuation | No daily price; value anchored to par at maturity per docs | Public: market price; Private: sponsor NAV | Daily or periodic NAV (manager-valued) |
| Fees & expenses | Reflected in offering docs (if any); no ongoing fund mgmt fee layer | Management + possible performance fees at the REIT level | Management + other fund expenses (see prospectus) |
| Transparency | Rate, frequency, term disclosed; payment calendar clear | Public: filings & disclosures; Private: sponsor reports | Prospectus, factsheets, periodic reports |
| Volatility | Payment schedule generally stable; not typically mark-to-market | Public REITs can be volatile; private REITs tied to sponsor NAV | NAV can move based on valuations |
| Term & horizon | Defined (e.g., 12–36 months) | Open-ended; strategy-dependent | Open-ended with periodic liquidity |
| Control of cash flows | You select term and coupon among offerings | Manager allocates capital across assets | Manager allocates within mandate |
| Redemption mechanics | Principal due at maturity per docs | Public: sell any day; Private: subject to policies/queues | Submit during windows; may be pro-rated |
| Best for | Investors seeking rate visibility and cash-flow planning | Investors seeking real estate exposure and potential growth | Investors seeking diversified alt-income with some liquidity |
All specifics depend on the particular note, REIT, or fund you choose. Always read the documents.
When notes may make more sense
- You want rate certainty and a known maturity date.
- You’re building a ladder to create rolling liquidity (e.g., 12/24/36 months).
- You prefer a stated payment calendar to plan cash flow.
When REITs or interval funds may make more sense
- You want manager-selected portfolios with ongoing NAV and broader diversification.
- You value public market liquidity (public REITs) or periodic repurchase (interval funds) and accept pricing/fee structures.
- You’re seeking exposure to real estate or diversified alternative income strategies.
Understanding distributions
Notes
- Fixed coupon stated upfront; payments follow a published schedule (monthly for many 12M notes; quarterly for 24M/36M).
- First payment timing depends on cutoffs and the Effective Date in the note’s documents.
REITs
- Dividends reflect portfolio cash flows after expenses; they can change over time.
- Public REIT prices move with the market; total return = dividends + price change.
Interval funds
- Distributions target yields from the portfolio; NAV adjusts with valuations.
- Repurchase windows allow some redemption but can be quota-limited (not daily-liquid).
Fees and transparency (at a glance)
- Notes: Economics are primarily the coupon vs term you select; see offering docs for any fees and exact mechanics.
- REITs: Typically include management and operating expenses; check prospectus/filings.
- Interval funds: Management fees + other operating costs disclosed in the prospectus; returns shown net of fees at NAV.
A simple decision flow
Need rate visibility and a date-certain maturity?
→ Consider notes; you can also ladder terms for rolling cash flow (e.g., 12/24/36 months).
Prefer a manager-run pool with periodic liquidity?
→ Consider interval funds—accept NAV movement and quotas.
Want real estate beta and public liquidity?
→ Consider public REITs—accept market volatility.
Blend?
→ Some investors pair a note ladder (cash-flow core) with REIT/interval allocations for diversification.
FAQs
Are note coupons fixed?
Coupons are set in the note’s offering documents; many Supervest notes use fixed rates with stated payment schedules.
Can I sell a note like a stock?
Notes are generally designed to be held to maturity; they are not daily-liquid like public REIT shares.
Which option is “safer”?
Risk depends on structure, underwriting, leverage, asset quality, and your time horizon. Compare documents and consider diversification.
How do taxes work?
Income from notes is often reported on 1099-INT; REIT/interval fund tax treatment varies. Consult your tax advisor and the specific offering/fund documents.
Compliance & disclosures
For accredited investors only. This content is for informational purposes and is not investment, legal, or tax advice. All investments involve risk, including loss of principal. Specifics—coupon, frequency, accrual conventions (Effective Date), minimums, fees (if any), maturity, liquidity, and investor rights—are governed solely by each product’s documents. Review all materials carefully before investing.
