RISKS AND DISCLAIMERS
BLUEROCK TOTAL INCOME+ REAL ESTATE FUND AND BLUEROCK HIGH INCOME INSTITUTIONAL CREDIT FUND
Investors should carefully consider the investment objectives, risks, sales charges and expenses of the Bluerock Total Income + Real Estate Fund and the Bluerock High Income Institutional Credit Fund (the ‘Funds”) before investing. This and other important information about the Funds is contained in their prospectus, which can be obtained by visiting the respective Funds websites referenced above. The prospectus should be read carefully before investing.
An investment in any share class of the Funds represents an investment in the same assets of the Funds. However, the purchase restrictions and ongoing fees and expenses for each share class are different – See “Summary of Fund Expenses” – located in the Funds’ prospectus. If an investor has hired an intermediary and is eligible to invest in more than one class of shares, the intermediary may help determine which share class is appropriate for that investor. When selecting a share class, you should consider which Share classes are available to you, how much you intend to invest, how long you expect to own shares, and the total costs and expenses associated with a particular share class. You should speak with your financial advisor to help you decide which share class is best for you.
Past performance is not a guarantee of future results. The ability of the Funds to achieve their investment objective depends, in part, on the ability of the Advisor, and Sub-Advisor, as applicable, to allocate effectively the Funds’ assets across the various asset classes in which they invest and to select investments in each such asset class. There can be no assurance that the actual allocations will be effective in achieving the Funds’ investment objective or delivering positive returns. There is no guarantee that the Funds’ investment strategies will work under all market conditions. Statements related to the performance of the Funds contained herein are historical and the Funds’ performance subsequent to the date as of which such statements were made may differ materially.
The Funds are closed-end interval funds, the shares have no history of public trading, nor is it intended that the shares will be listed on a public exchange at this time. No secondary market is expected to develop for the Funds’ shares. Limited liquidity is provided to shareholders only through the Funds’ quarterly repurchase offers for no less than 5% of the Funds’ 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. Since inception, the Bluerock Total Income+ Fund has made 38 repurchase offers, of which 33 have resulted in the repurchase of all shares tendered, four have resulted in the repurchase of less than all shares tendered, and one is pending. In connection with the February 2022 repurchase offer, the Fund repurchased all shares tendered for repurchase. Quarterly repurchases by the Funds of their 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 Funds’ net asset value. The Funds are suitable only for investors who can bear the risks associated with the limited liquidity of the Funds and should be viewed as a long-term investment.
Investors in the Funds should understand that the net asset value (“NAV”) of the Funds will fluctuate, which means the value of your shares at any point in time may be worth less than the value of your original investment, even after taking into account any reinvestment of dividends and distributions. An investment in shares represents an indirect investment in the securities owned by the Funds. The value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably. The Funds are “non-diversified” under the Investment Company Act of 1940 and therefore may invest more than 5% of their total assets in the securities of one or more issuers. As such, changes in the financial condition or market value of a single issuer may cause a greater fluctuation in the Funds’ net asset value than in a “diversified” fund. The Funds are not intended to be a complete investment program.
BLUEROCK TOTAL INCOME+ REAL ESTATE FUND
The Fund is subject to the risk that geopolitical and other similar events will disrupt the economy on a national or global level. For instance, war, terrorism, market manipulation, government defaults, government shutdowns, political changes or diplomatic developments, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics) and natural/environmental disasters can all negatively impact the securities markets.
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. These factors include, among others: (i) changes in general economic and market conditions; (ii)changes in the value of real estate properties; (iii) risks related to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses; (v) changes in zoning laws; (vi)casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the appeal of property to tenants; (viii) the availability of financing; (ix) climate change; and (x) changes in interest rates. 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 specific risks, including: such investments require the Fund to bear a pro rata share of the vehicles’ expenses, including management and performance fees; the Advisor and Sub-Advisor will have no control over investment decisions may by such vehicle; such vehicle may utilize financial leverage; such investments have limited liquidity; the valuation of such investment as of a specific date may vary from the actual sale price that may be obtained if such investment were sold to a third party.
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 All potential investors should read the Risk Factors section of the prospectus for additional information related to the risks associated with an investment in the Fund.
BLUEROCK HIGH INCOME INSTITUTIONAL CREDIT FUND
The Fund is newly organized and as a result it has no pricing and performance history.
Because the Fund invests primarily in debt-anchored instruments and securities, the value of your investment in the Fund may fluctuate with changes in interest rates.
The Fund may invest in senior secured debt and Collateralized Loan Obligations (CLOs). Substantial increases in interest rates may cause an increase in loan defaults and the value of the Fund’s assets may also be affected by other uncertainties such as economic developments affecting the market for senior secured term loans or uncertainties affecting borrowers generally. There is a risk that the borrowers under the Senior Secured Loans may not make scheduled interest and/or principal payments on their loans and/or debt securities, which may result in losses or reduced cash flow to the Fund, either or both of which may cause the NAV of, or the distributions by, the Fund to decrease.
CLOs carry additional risks, including but not limited to (i) the possibility that distributions from collateral will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the possibility that the Fund’s investments in CLOs are subordinate to other classes or tranches thereof; and (iv) the complex structure of the CLO investment may not be fully understood at the time of investment and may produce disputes with the issuer, holders of senior tranches or other unexpected investment results.
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: credit risk (the debtor may default), liquidity risk (the investment may not be able to be sold at an advantageous time or price) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). All potential investors should read the Risk Factors section of the prospectus for additional information related to the risks associated with an investment in the Fund.
The Bluerock Total Income+ Fund and the Bluerock High Income Institutional Credit Fund are distributed by ALPS Distributors, Inc. (ALPS). Bluerock Fund Advisor, LLC is not affiliated with ALPS.
BLUEROCK VALUE EXCHANGE
BVEX sponsored offerings are available for Accredited Investors only. This is neither an offer to sell nor a solicitation of an offer to buy any securities, which can be made only by a Confidential Private Placement Memorandum (the “Memorandum”). This material must be read in conjunction with the Memorandum to fully understand all of the implications and risks of the offering of securities to which it relates. A copy of the Memorandum must be made available to you in connection with this offering. Prospective investors should carefully read the Memorandum and review any additional information they desire prior to making an investment and should be able to bear the complete loss of their investment. It is strongly recommended that investors seek competent, independent tax and legal counsel prior to initiating, and while performing, transactions involving Internal Revenue Code Section §1031.