At New World Advisors, we are continuously scouring the investment landscape for compelling investment opportunities. Our deep business networks and combined years of investment experience afford us access to premier strategies for consideration. To this point, we believe the Manufactured Housing sector exhibits exciting long-term attributes and can play a valuable role in a diversified client portfolio.

Manufactured Housing Communities (“MHCs”), and more specifically Mobile Home Parks, offer the rare combination of:

1. Strong expected returns - highly fragmented niche market opportunity with robust demand and limited institutional ownership

2. Portfolio diversification - recession resistant characteristics and historically not correlated with either public equity markets or other real estate investments

3. Positive social impact - providing residents with a safe and affordable place to be proud to live

Further illuminating this point, below please find a recent J.P. Morgan table that independently highlights the compelling characteristics of the Manufactured Housing sector. Please focus your attention on the two columns furthest to the right. Over the prior 10 years going back to 2011, Manufactured Housing has been the best performing and most consistent real estate sector, returning almost 20% on an annualized basis, while also generating the least volatility in those returns. Therefore, from both an absolute and risk-adjusted return perspective, manufactured housing is a desirable investment category.

We believe MHCs will continue to fly under the radar of many investors. The trend for this attractive opportunity should continue given the secular tailwinds supporting the need for affordable housing (aging demographics– baby boomers retiring), the limited availability of skilled operators, and the fragmented nature (many family owned “Mom-and-Pop” parks) of park ownership. Lastly, the category has traditionally exhibited recession-resistant characteristics because home pad rental fees are relatively nominal, and as a result, demand remains consistent throughout the economic cycle.

Issue Date: February 28, 2021

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

New World, Inc. ("New World") is a Registered Investment Advisor ("RIA") with the U.S. Securities and Exchange Commission (“SEC”). New World provides investment advisory and related services to clients nationally. New World will maintain all applicable notice filings, registrations and licenses as required by the SEC and various state regulators in which New World conducts business. New World renders individualized responses to persons in a particular state only after complying with all regulatory requirements or pursuant to an applicable state exemption or exclusion. The information contained above is for illustrative purposes only.

Flying Under the Radar with Manufactured Housing