(PUB) Investing 2016

23

January 2016

Morningstar FundInvestor

Data through December 31, 2015 FINRA members: For internal or institutional use only. Third Avenue Real Estate Value Instl

Ticker TAREX

Yield 0.7%

Total Assets $2,836 mil

Mstar Category Global Real Estate

Benchmark 1: S&P Global REIT TR USD Benchmark 2: MSCI ACWI NR USD Morningstar Analyst Rating 12-18-15 „

Investment Style Equity

Historical Profile Return Risk Rating High Low QQQQQ Highest

5 5 5 5 5 5 5 5

20.0

Growth of $10,000

15.0

Investment Values of Fund Investment Values of Benchmark 1

Morningstar Pillars Process

10.0

∞ Positive ∞ Positive ∞ Positive § Negative ¶ Neutral

Performance

People Parent

Performance Quartile (within Category)

* ) & * & * ( * & ( ) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 12-15 29.36 34.64 27.83 14.95 20.46 23.16 20.30 25.37 28.82 31.47 28.73 14.37 30.14 -8.33 -44.70 38.67 17.76 -12.35 36.24 16.42 13.12 -3.65 3.96 -8.65 2.80 0.34 4.98 -5.68 -14.05 12.51 13.62 -9.68 -4.24 3.54 9.18 -19.99 -2.50 4.04 5.09 -5.00 20.11 -6.38 8.96 -1.29 1.65 3.04 1.72 1.53 1.74 4.51 0.00 4.40 1.20 1.76 0.67 12.72 27.09 -10.05 -46.23 36.93 13.25 -12.35 31.84 15.23 11.36 -4.32 0.44 0.89 0.60 0.43 0.26 0.92 0.00 0.89 0.30 0.51 0.21 1.03 2.63 3.25 0.00 0.00 0.00 0.00 1.38 0.40 0.63 1.40 1.14 1.11 1.10 1.12 1.18 1.18 1.15 1.09 1.09 1.09 1.10 1.15 0.80 1.14 1.22 4.00 2.09 0.26 0.96 0.65 1.82 0.13 29 82 18 28 19 43 67 26 1 64 88

Price

History

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ ‰ Á

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

§ Negative

¶ Neutral

Performance 12-31-15 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2011 2012 2013 2014 2015

2.63 1.94 -20.97 6.01 -12.35 18.13 0.63 9.12 5.04 36.24 4.26 1.70 5.72 3.85 16.42 5.69 4.53 -2.29 4.80 13.12 3.05 -1.48 -6.29 1.27 -3.65

13

10

19

34

24

26

32

4

13

14

17

2,910 3,262 2,443 1,093 1,476 1,719 1,409 1,691 2,013 2,904 2,451

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 07-31-15 Total Stocks: 40 Share change since 04-30-15

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Sector

Country

% Assets

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

T Weyerhaeuser Co

Basic Mat United States

4.82 4.30 3.65 3.60 3.40 3.38 3.08 2.96 2.83 2.79 2.62 2.54 2.42 2.35 2.26 2.13 2.07 2.02 2.00

1 Yr 3 Yr 5 Yr

-3.65 8.26 8.67 5.02 10.91

3 Mo 6 Mo

1.27 -3.90 -3.76 -5.10 -9.98 -0.20 -3.65 -4.24 -1.29 8.26 -0.03 0.57 8.67 -1.16 2.58 5.02 -0.96 0.27 9.77 -0.73 0.87

83 10,127 87 9,490 88 9,635 1 12,689 4 15,153 19 16,325 16 40,483

T Forest City Enterprises I T First Industrial Realty T

Real Est Real Est Real Est

United States United States United States

Low QQQQQ Low QQQQQ -Avg QQQQ

High High

1 Yr

T Macerich Co T Rayonier Inc T Westfield Corp

10 Yr Incept

+Avg

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Basic Mat United States

Real Est

Australia

Newhall Holding Co Llc Cl

— —

Other Measures

Standard Index

Best Fit Index

T Vornado Realty Trust

Real Est Real Est Real Est

United States

Alpha

2.8

1.6

Hammerson PLC

United Kingdom 2.85

Beta

0.69

1.44

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

Inmobiliaria Colonial SA T City Developments Ltd

Spain

R-Squared

73

79

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

6.98 7.45 3.69

1 3 7

1.18 1.12 1.27

35 33 33

Cnsmr Cyc Singapore

Standard Deviation

8.85 8.26 0.94

Y Henderson Land Developmen Real Est

Hong Kong

Mean

Equity Commonwealth

Real Est

United States

Sharpe Ratio

Zions Bancorp

Finan Svcs United States Cnsmr Cyc United States

Potential Capital Gain Exposure: 14% of assets

Lowe's Companies Inc

Morningstar's Take by Leo Acheson 12-18-15 Third Avenue Real Estate Value remains a strong choice, but Morningstar has downgraded its Analyst Rating to Silver because of instability at its parent. On Dec. 10, 2015, Third Avenue shuttered a different fund, Third Avenue Focused Credit, because it held highly illiquid securities and was unable to meet redemption requests without selling its bonds at fire-sale prices. The firm will make distributions to investors during the next year or so as assets are sold at what management deems fairer prices. Running the open-end fund in the manner that put it in that situation raises concerns about the firm's oversight. Third Avenue subsequently announced it had parted ways with CEO David Barse. An existing management committee of five people has taken over management of the firm. The Focused Credit fund fiasco represents a major governance failure and has materially damaged Third Avenue's reputation. Moreover, the firm has experienced generally weak results and suffered significant investment-team turnover, with 15 team members leaving since early 2013. (The investment team stands at

Brookfield Asset Manageme Y CK Hutchison Holdings Ltd

Real Est Real Est Real Est Real Est Real Est

Canada

Hong Kong Netherlands United States United States

22 today.) In the near term, outflows will likely pick up and additional turnover would not be surprising. Everything considered, Morningstar has downgraded Third Avenue's Parent rating to Negative. That said, this fund has mostly escaped the firm's troubles. It's had a remarkably stable team: Mike Winer has led the charge since the fund's 1998 inception, and comanagers Jason Wolf and Ryan Dobratz have worked on the fund for about a decade. The group has executed the fund's unique strategy with great success, outperforming at least 90% of competitors over the trailing three-, five-, and 10-year periods through November 2015. Still, given the recent turmoil at Third Avenue, investors should closely monitor this fund's flows and the potential impact on the portfolio. The fund holds primarily liquid stocks, and Winer confirmed that he could readily meet significant investor redemptions, alleviating concerns. Overall, this remains a great fund, though parent concerns warrant caution.

T Wereldhave NV

Realogy Holdings Corp Post Properties Inc

Current Investment Style

Sector Weightings h Cyclical r BasicMat t CnsmrCyc y FinanSvcs u Real Est j Sensitive i CommSrvs o Energy p Industrl a Technlgy k Defensive s CnsmrDef d Hlthcare f Utilities

% of Stocks

Rel Bmark 1

Market Cap % Giant 11.3 Large 24.8 Mid 40.0 Small 23.1 Micro 0.8 Avg $mil: 7,033

Value Blend Growth

Large Mid Small

97.84 -0.05

10.21

—

9.33 116.63

6.08

—

72.22 0.73 0.00 0.00

0.00 0.00

— —

Value Measures

Rel Category

Price/Earnings 19.49

0.94 0.96 0.57 0.74 0.73 1.28 -0.37 -7.92 0.22 1.37

0.00 0.00

Price/Book Price/Sales

1.41 2.94

0.00 2.16 0.00 2.16 0.00

— — — — —

Price/Cash Flow 10.66 Dividend Yield % 2.73

Growth Measures

% Rel Category

Long-Term Erngs 8.90

Regional Exposure % Stock UK/W. Europe 19 N. America 55 Japan 0 Latn America 0 Asia X Japan 26 Other 1

Book Value

-1.45 -7.34 2.61

Sales

Address:

Third Avenue Trust New York NY 10017

Minimum Purchase: Min Auto Inv Plan:

$100000 Add: $1000IRA: $100000

Cash Flow

$100000 Add: $200

Historical Erngs 13.23

800-443-1021

Sales Fees:

No-load, 1.00%R

Country Exposure United States 52 Hong Kong 14 UK 11

% Stock

Web Address:

www.thirdavenuefunds.com

Management Fee:

0.90%

Composition - Net Cash

Australia Singapore

7 5

Inception:

09-17-98

Actual Fees:

Mgt:0.90% Dist:—

14.9 Bonds

0.0 1.5

Advisor:

Third Avenue Management LLC

Expense Projections: Income Distribution:

3Yr:$346 5Yr:$601 10Yr:$1329

Stocks 83.5 Other

Subadvisor:

None

Annually

Foreign (% of Stock)

47.8

A

ß ® Mutual Funds

©2016Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past performance is no guarantee of future results.Access updated reports at www.morningstar.com . To order reprints, call 312-696-6100.