Bluerock Capital Markets Reports Another Record Month of Equity Inflows with over $192 Million in July Across its Investment Product Suite
New York, NY (August 12, 2021) – Bluerock Capital Markets, LLC (“BCM” or “Company”), a distributor of institutional alternative investment products and the dedicated dealer manager for Bluerock Real Estate (“Bluerock”), reported another record-setting month of new equity capital inflows with over $192 million during the month of July, up over 13% from the prior record set in June 2021, with robust sales across all three of Bluerock’s investment products1. As of the date of this release, Bluerock’s equity inflows for 2021 have exceeded $1 billion, with sequential upward momentum on a month-over-month basis.
The record-setting month was led by Bluerock’s flagship institutional real estate fund, Bluerock Total Income+ Real Estate Fund (the “Fund”), with more than $128 million in new equity inflows in July 2021, up a significant 21% from the prior record set in June 2021. The Fund has continued to maintain a sizeable market share of all direct industry capital placed into closed-end interval funds with 18% market share YTD through June 2021 with total new capital inflows of more than $580 million through June 20212.
The Company reports that new capital inflows into the Fund are being driven by strong overall performance which has delivered a notable 13% net return to shareholders (I-share: TIPWX) from the trough of the pandemic (September 2020) through July 31, 2021, with a remarkable 95% up period percent (i.e., daily returns positive to neutral) over the same period3. In addition, the Fund’s I share has delivered a 1.6% standard deviation since inception, less than half that of the Bloomberg Barclay’s U.S. Aggregate Bond Index and approximately 1/13th the volatility of the S&P 500 over the same period4. 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 3-year and 5-year periods among all active real estate sector interval funds through July 20215.
The Company similarly reported a monthly record match of new equity capital raise in the Bluerock Residential Growth REIT’s (BRG) Non-Traded Series T Preferred Stock program of more than $42 million during July. BRG holds a robust 49% market share of new investments into non-traded preferred stock within the direct investment industry3. Further, the Company continues to hold a top-tier position for sales of 1031/DST exchange programs among all sponsors through Bluerock Value Exchange (BVEX)6, including new capital inflows of more than $20 million during July and more than $100 million in sales YTD.
“We believe the substantial and continuous upticks in our equity capital raise inflows from each of our intermediary distribution channels is in direct correlation to the strong and consistent performance of each of our offered investment products”, said Jeffrey S. Schwaber, CEO of Bluerock Capital Markets. “Bluerock’s portfolio managers continue to drive substantial income, tax efficiency and growth to investors, with low volatility resulting in outsized total and risk-adjusted returns. With the threat of impending inflation, tax law changes and late equity market cycle concerns, we believe Bluerock’s conservative income and total return approach is a valuable solution to advisors and their clients”, continued Schwaber.
1 Includes dividend reinvestment.
2 Source: R.A. Stanger, Market Pulse as of June 2021.
3 Source: Morningstar Direct. Total I share returns 9.25.2020 through 7.31.2021.
4 Source: Morningstar Direct, I share inception 4.1.2014 – 7.31.2021
5 Source: Morningstar Direct as of July 31, 2021, real estate interval funds listed on intervalfundtracker.com. TIPRX generated the highest total return of all 10 real estate interval funds per Morningstar data for July 2021, the 3-year period ending July 2021 which included eight funds, and the 5-year period ending July 2021 which included seven funds. Criteria based on trailing total returns for the respective time periods.
6 Mountain Dell Research.
TI+ Fund Class A and I Share Net Performance
|TI+ Fund Class A|
|TI+ Fund Class A with Max Sales Charge7|
|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.
7 Inception date of the TI+ Fund Class A share is October 22, 2012 and Class I share is April 1, 2014.
8 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 2.18% for Class A and 1.92% 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, 2022 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 shares, 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.
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 Q1 2021, the value of the underlying real estate held by the securities in which the Fund is invested is approximately $238 billion, including investments managed by Ares, Blackstone, Morgan Stanley, Principal, PGIM, 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.
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 $15.0 trillion in assets under advisement.
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 Fund’s distribution policy is to make quarterly distributions to shareholders. The level of quarterly distributions (including any return of capital) is not fixed and this distribution policy is subject to change. 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 each 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. There can be no assurance that any investment will be effective in achieving the Fund’s investment objectives, delivering positive returns or avoiding losses.
Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the Fund’s shares outstanding at net asset value. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s net asset value.
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 Bluerock Total Income+ Real Estate Fund is distributed by ALPS, Inc. The prospectus should be read carefully before investing. Bluerock Fund Advisor, LLC is not affiliated with ALPS Distributors, Inc.
Bluerock is a leading institutional alternative asset manager with approximately $9.7 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 Capital Markets
Bluerock Capital Markets, LLC (BCM) serves as the managing broker dealer for Bluerock and is a member of FINRA/SIPC. Formed in 2010, BCM distributes a broad range of institutional investment products with potential for growth, income, and tax benefits exclusively through broker dealers and investment professionals including the Bluerock Total Income+ Real Estate Fund, Bluerock Residential Growth REIT, Inc., and programs sponsored by Bluerock Value Exchange, LLC. BCM was a top 3 capital fundraiser over the prior three-year period (2018-2020) among all active managing broker dealers in the Direct Investments Industry.9
About Bluerock Residential Growth REIT
Bluerock Residential Growth REIT, Inc. is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. BRG’s objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value-add improvements to properties and operations. BRG reports assets in excess of $2.4 billion and approximately 17,900 apartment units. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
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 10 million square feet of property.
Bluerock Residential Growth REIT’s Series T Preferred Stock and Bluerock Value Exchange’s programs are offered by Bluerock Capital Markets, LLC. 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.
9 Robert A. Stanger Market Pulse