Bluerock Capital Markets Attracts Record $365 Million of New Equity Inflows in February
New York, NY (March 7, 2022) – Bluerock Capital Markets, LLC (“BCM” or “Company”), a distributor of institutional alternative investment products and the dedicated dealer manager for Bluerock, reported a new monthly record of equity capital inflows with approximately $365 million in February. The Company’s trailing equity inflows annualize to over $4.3 billion.
The record-setting pace was led by Bluerock’s flagship institutional real estate fund, Bluerock Total Income+ Real Estate Fund (the “Fund or “Bluerock TI” Fund”), with nearly $336 million in new equity in February; up 21% from the prior record set in January.1 The Fund has accumulated the highest capital inflows from the beginning of the COVID pandemic (April 2020) through January 2022 (most recent data) among all active interval funds within the direct investment industry.2
Further, the Bluerock TI+ Fund has paid 36 consecutive quarterly distributions over its 9+ year history at a steady 5.25% annualized rate providing $13.40 per share of cash flow with an average 63% of its distributions being tax-deferred since inception3 (TIPRX, A-share, 10.22.2012) and has generated a 9.06% annualized return since inception, a 5.51% YTD return and a 25.57% trailing one-year return with a very low 1.8% annualized standard deviation since inception (TIPRX, A-share), all as of February 28, 2022. The annualized return results in more than 380 basis points of annual appreciation over and above the annual 5.25% distribution rate thereby providing shareholders with a hard to come by combination of attractive tax-efficient income and high appreciation with very low volatility.
Bluerock TI+ Fund has also been a consistent leader in risk-adjusted performance generating the single highest Sharpe and Sortino Ratios (key measures of risk-adjusted returns) of all domestic ‘40 Act funds (including equities, fixed income and specialty sector) in the trailing 5-year (7,894 funds) and since inception (6,153 funds) time periods as of 2.28.22, per Morningstar.4 The Fund’s peer-leading performance spans multiple time periods with the Fund’s A-share and I-shares both reporting the highest total net returns in the trailing 5-year period among all active real estate sector interval funds (7 funds) as of 2.28.2022.5 The Fund has delivered positive total returns to its shareholders every year since inception (9+ years) and 33 of 36 quarters. Past performance is no guarantee of future results.
“Bluerock TI+ Real Estate Fund’s exemplary recent and long-term performance continues to provide a rare combination of substantial tax-efficient income and growth with low volatility to our financial advisors and their clients at a time of high anxiety over inflation, rising rate concerns and valuation declines across the major equity and fixed income indices YTD”, said Jeffrey S. Schwaber, CEO of Bluerock Capital Markets. “In that regard, after delivering a 21.61% return in 2021, Bluerock TI+ Fund (TIPRX, no load) has generated a positive 5.51% return for the first two months of 2022 versus a -8.01% for the S&P 500, -3.25% for the Bloomberg U.S. Aggregate Bond Index, and -12.01% for the NASDAQ Composite providing our investors with a portfolio enhancing 8.80% – 17.60% outperformance compared to these major indices. Further, we maintain our bullish outlook for institutional private equity real estate and in particular, Bluerock’s high conviction and overweight sectors”, added Schwaber.
In addition, the Company also reported strong monthly equity inflows for 1031 exchange/DST programs through Bluerock Value Exchange (BVEX) with approximately $29 million in February. BVEX continues to rank within the top 10 in total annualized equity raise among all 1031/DST sponsors within the direct investment industry over the past 15+ years.2
* Returns would have been lower if the calculation reflected the load.
1 Includes distribution reinvestment.
2 Source: R.A. Stanger, Market Pulse as of January 2022; exclusively RIA/independent broker dealer intermediary distribution.
3 The Fund’s distribution policy is to make quarterly distributions to shareholders. The level of quarterly distributions (including any return of capital) is not fixed. However, this distribution policy is subject to change. The Fund’s distribution amounts were calculated based on the ordinary income received from the underlying investments, including short-term capital gains realized from the disposition of such investments. Shareholders should not assume that the source of a distribution from the Fund is net profit. All or a portion of the distributions consist of a return of capital based on the character of the distributions received from the underlying holdings, primarily Real Estate Investment Trusts. The final determination of the source and tax characteristics of all distributions will be made after the end of the year. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. There is no assurance that the Company will continue to declare distributions or that they will continue at these rates. Distributions historically 63% tax deferred from 1.1.2013-12.31.2021.
4 Source: Morningstar Direct based on daily data as of 2.28.2022, among of all U.S. open-end, closed-end, and exchange traded funds (7,894 funds in the trailing 5-year period, and 6,153 funds since inception) TIPRX generated the highest annualized Sharpe Ratio and annualized Sortino Ratio; compiled by Bluerock Fund Advisor, LLC. TIPRX, no load. Sharpe Ratio, and Sortino Ratio are only two forms of performance measure. The Sharpe Ratio and Sortino Ratio would have been lower if the calculation reflected the load. The funds considered in the analysis have significant differences, including various objectives, strategies, liquidity, and fees (see definitions below).
5 Source: Morningstar Direct, trailing 5 years through 2.28.2022, all real estate interval funds as identified by intervalfundtracker.com. The 5-year comparison includes 7 funds. Past performance does not guarantee future results.
TI+ Fund Class A and I Share Net Performance
|TI+ Fund Class A|
|TI+ Fund Class A with Max Sales Charge8|
|TI+ Fund Class I|
Returns presented are total net return: expressed in percentage terms, the calculation of total return is determined by taking the change in price, reinvesting, if applicable, all income and capital gains distributions during the period, and dividing by the starting price. Returns greater than one year are annualized.
6 Inception date of the TI+ Fund Class A share is October 22, 2012 and Class I share is April 1, 2014.
7 The maximum sales charge for the Class A shares is 5.75%. Investors may be eligible for a waiver or a reduction in the sales charge.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month end, please call toll-free 1-888-459-1059. Past performance is no guarantee of future results.
The total annual fund operating expense ratio, gross of any fee waivers or expense reimbursements, is 2.09% for Class A and 1.83% for Class I. The Fund’s investment advisor has contractually agreed to reduce its fees and/or absorb expenses of the fund, at least until January 31, 2023 for Class A, and I-shares, to ensure that the net annual fund operating expenses will not exceed 1.95% for Class A, and 1.70% for Class I per annum of the Fund’s average daily net assets attributable to Class A, and Class I, respectively, subject to possible recoupment from the Fund in future years. Please review the Fund’s Prospectus for more detail on the expense waiver. A fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. Fund performance and distributions are presented net of fees.
Bluerock is a leading institutional alternative asset manager with more than $12 billion of acquired and managed assets headquartered in Manhattan with regional offices across the U.S. Bluerock principals have a collective 100+ years of investing experience with more than $48 billion real estate and capital markets experience and have helped launch leading private and public company platforms.
About Bluerock Total Income+ Real Estate Fund
The Bluerock Total Income+ Real Estate Fund offers individual investors access to a portfolio of institutional real estate securities managed by top-ranked fund managers. The Fund seeks to provide a comprehensive real estate holding designed to provide a combination of current income, capital preservation, long-term capital appreciation and enhanced portfolio diversification with low to moderate volatility and low correlation to the broader equity and fixed income markets. The Fund utilizes an exclusive partnership with Mercer Investment Management, Inc., the world’s leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, with over 3,300 clients worldwide, and over $15.5 trillion in assets under advisement.
About Bluerock Value Exchange
Bluerock Value Exchange is a national sponsor of syndicated 1031-exchange offerings with a focus on Premier Exchange Properties™ that seek to deliver stable cash flows and potential for value creation. Bluerock has structured 1031 exchanges on approximately $2 billion in total property value and 11 million square feet of property.
Bluerock Value Exchange’s programs are offered by Bluerock Capital Markets, LLC.
The Bluerock Total Income+ Real Estate Fund is a closed-end interval fund that invests the majority of its assets in institutional private equity real estate securities that are generally available only to institutional investors capable of meeting the multi-million dollar minimum investment criteria. As of Q4 2021, the value of the underlying real estate held by the securities in which the Fund is invested is approximately $292 billion, including investments managed by Ares, Blackstone, Morgan Stanley, Principal, Prudential, Clarion Partners, Invesco and RREEF, among others. The minimum investment in the Fund is $2,500 ($1,000 for retirement plans) for Class A, C, and L shares.
Investing in the Bluerock Total Income+ Real Estate Fund involves risks, including the loss of principal. The Fund intends to make investments in multiple real estate securities that may subject the Fund to additional fees and expenses, including management and performance fees, which could negatively affect returns and could expose the Fund to additional risk, including lack of control, as further described in the prospectus.
The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Advisor to allocate effectively the Fund’s assets across the various asset classes in which it invests and to select investments in each such asset class. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or delivering positive returns.
The current novel coronavirus (COVID-19) global pandemic and the aggressive responses taken by many governments, including closing borders, restricting international and domestic travel, and the imposition of prolonged quarantines or similar restrictions, as well as the forced or voluntary closure of, or operational changes to, many retail and other businesses, have had negative impacts, and in many cases severe negative impacts, on markets worldwide. Potential impacts on the real estate market may include lower occupancy rates, decreased lease payments, defaults and foreclosures, among other consequences. It is not known how long such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown.
The Fund will concentrate its investments in real estate industry securities. The value of the Fund’s shares will be affected by factors affecting the value of real estate and the earnings of companies engaged in the real estate industry. Many real estate companies utilize leverage, which increases investment risk and could adversely affect a company’s operations and market value in periods of rising interest rates. The value of securities of companies in the real estate industry may go through cycles of relative under-performance and over-performance in comparison to equity securities markets in general.
A significant portion of the Fund’s underlying investments are in private real estate investment funds managed by institutional investment managers (“Institutional Investment Funds”). Investments in Institutional Investment Funds pose additional risks.
Additional risks related to an investment in the Fund are set forth in the “Risk Factors” section of the prospectus, which include, but are not limited to the following: convertible securities risk; correlation risk; credit risk; fixed income risk; leverage risk; risk of competition between underlying funds; and preferred securities risk.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Bluerock Total Income+ Real Estate Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained online at bluerockfunds.com. The prospectus should be read carefully before investing.
A basis point is a measurement with one basis point equal to 1/100th of 1%.
An open-end fund is a type of mutual fund that does not have restrictions on the amount of shares the fund can issue. The majority of mutual funds are open-end, providing investors with a useful and convenient investing vehicle. Shares are bought and sold on demand at their net asset value (NAV), which is based on the value of the fund’s underlying securities and is calculated at the end of the trading day.
A closed-end fund is organized as a publicly traded investment company by the Securities and Exchange Commission (SEC). Like a mutual fund, a closed-end fund is a pooled investment fund with a manager overseeing the portfolio; it raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange. Unlike open-end funds, closed-end funds trade just like stocks. While open-end funds are priced only once at the end of the day, closed-end funds are traded and priced throughout the day.
An ETF, or exchange-traded fund, is a marketable security that tracks a stock index, a commodity, bonds, or a basket of assets. Although similar in many ways, ETFs differ from mutual funds because shares trade like common stock on an exchange. The price of an ETF’s shares will change throughout the day as they are bought and sold.
Sharpe Ratio: Measurement of the risk-adjusted performance calculated by subtracting the annualized risk-free rate (3-month Treasury Bill) from the annualized rate of return for a portfolio and dividing the result by the annualized standard deviation of the portfolio returns.
Sortino Ratio: Measurement of risk-adjusted performance and a modification of the Sharpe ratio to measure the return to “bad” volatility (i.e., volatility caused by negative returns considered bad or undesirable by an investor), calculated as the excess return over the risk-free rate divided by the downside semi-variance.
Annual standard deviation is the daily percentage change in an investment. Standard deviation shows how much variation from the average exists with a larger number indicating the data points are more spread out over a larger range of values.
Stocks (S&P 500): An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe (Investopedia). Risks include the dynamic fluctuations of the market and possible loss of principal.
Bonds (The Bloomberg U.S. Aggregate Bond Index): measures the performance of the U.S. investment grade bond market. The index invests in a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States – including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year. Risks include rising interest rates, credit quality of the issuers and general economic conditions.
NASDAQ Composite: an index of more than 3,000 common equities listed on the NASDAQ stock market. The index is one of the most followed indices in the United States, alongside the Dow Jones Industrial Average and the S&P 500. The majority of companies listed on the NASDAQ Composite are technology companies.
The Bluerock Total Income+ Real Estate Fund is distributed by ALPS Distributors Inc. Bluerock Capital Markets, LLC is not affiliated with ALPS Distributors, Inc. or Mercer Investment Management, Inc. ALPS Distributors, Inc. is not affiliated with Bluerock Residential Growth REIT.