Bluerock Total Income+ Real Estate Fund Celebrates 10-Year Anniversary, With Highest Risk-Adjusted Returns Among All 1940 Act Funds Over 1/3/5 and Since Inception Periods
Bluerock Fund Advisor Honored as Asset Manager of the Year Finalist
New York, NY (October 24, 2022) – Bluerock Total Income+ Real Estate Fund (“Bluerock Total Income+,” “Fund,” “TI+,” tickers: TIPRX, TIPPX, TIPWX, TIPLX, TIPMX), the largest real estate interval fund, today announced the 10-year anniversary of the Fund’s launch.
In celebrating its 10th anniversary, the TI+ Fund is proud to announce it has delivered the highest risk-adjusted return (as measured by the Sharpe and Sortino Ratios, key measures of risk-adjusted returns) not only among all active real estate sector interval funds, but also among all domestic ‘40 Act funds (consisting of nearly 6,100 equity, fixed income and specialty sector funds) with over $250 million in net assets over the 1-year, 3-year, 5-year and since inception periods as of 9.30.22, per Morningstar.1 Past performance does not guarantee future results.
Bluerock Fund Advisor, advisor to the Fund, is honored to announce it has been selected as a 2022 finalist for Asset Manager of the Year (AUM under $25 billion) by Barron’s and Money Management Institute. The award seeks to recognize innovation and leadership in the investment advisory solutions industry and honors the asset manager that exemplifies innovation in delivering better outcomes for investors and financial advisors.
The Fund has grown to more than $7.3 billion in net assets, making it the largest real estate focused interval fund, and 3rd largest interval fund overall (ranked by net assets).2 TI+ has assembled one of the largest diversified portfolios of institutional private real estate with approximately $383 billion in underlying equity and debt investments comprised of more than 6,500+ underlying properties with a low leverage, core real estate mandate.
Bluerock Total Income+ is also pleased to report continued outsized shareholder net returns of 24.98% over the trailing 12-months and 15.76% YTD (TIPWX, I-share as of 9.30.22), in periods which both equity and fixed income securities were down sharply. The Fund boasts positive total returns in every calendar year and an annualized net return to shareholders since inception of 9.51%, with a low 1.68% annualized standard deviation since inception (TIPWX, I-share) as of 9.30.2022. We believe the Fund’s strong performance has been driven by the investment team’s continued active management, including strategic over-weights to the industrial, residential, life science and specialty sectors, which represent approximately 90% of the Fund’s underlying portfolio.3
“We are excited to celebrate Bluerock Total Income+ Real Estate Fund’s 10-year anniversary and achievements for shareholders,” remarked Ramin Kamfar, Founder and CEO of Bluerock, and Chairman of the Fund. “As the first to pioneer the interval fund structure within the independent broker dealer channel, we are proud to have delivered the proof of concept to pave the way for what is now a $37 billion interval fund industry. We believe as strongly as we did when we first launched, that the Fund’s underlying investments in institutional private real estate are an essential portfolio diversifier in individual investor portfolios which can deliver consistent, attractive returns and capital appreciation,” added Kamfar.
“Our team is proud to have consistently delivered on the Fund’s investment objectives over the past 10 years and across multiple market cycles,” said Adam Lotterman, Co-Founder of Bluerock Fund Advisor, Co-Chief Investment Officer and Senior Portfolio Manager. “We remain active investors and continue to position the Fund’s investments to take advantage of real estate trends and sectors we believe are expected to deliver the highest risk-adjusted returns by continuously seeking to mitigate risk in the portfolio,” added Lotterman.
TI+ recently paid its 39th consecutive quarterly distribution in September 2022 at the annual rate of 5.25% based on current net asset value (NAV).4 The Fund’s quarterly distributions have also been highly tax efficient with approximately 63% of the distributions enjoying tax deferral for even higher taxable equivalent rates. In addition, TI+’s NAV per share has increased nearly 50% from $25.00 per share to $37.45 per share adding significant appreciation to the distribution for attractive total returns (A-share, TI+’s longest running share class as of 9.30.22).
1 Source: Morningstar Direct based on daily data as of 9.30.2022, among of all U.S. open-end, closed-end, and exchange traded funds (6,063 funds since inception) TIPRX generated the highest annualized Sharpe Ratio and annualized Sortino Ratio among all funds over $250 million in net assets; 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). reinvestment. Trailing 1, 3, and 5 years through 9.30.2022, all real estate interval funds as identified by intervalfundtracker.com and Robert A. Stanger. The 1, 3, and 5-year comparisons includes eight funds. Past performance does not guarantee future results.
2 Source: Intervalfundtracker.com, Bloomberg, Robert A. Stanger, as of September 30, 2022.
3 For detailed Fund holdings, please visit bluerock.com/ti-fund/investment-holdings.
4 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.
TI+ A-Share and I-Share Fund Net Performance
|TI+ Fund Class A|
|TI+ Fund Class A with Max Sales Charge6|
|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.
5 Inception date of the TI+ Fund Class A share is October 22, 2012 and Class I share is April 1, 2014.
6 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 or visit bluerock.com/ti-fund/performance. 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 Class I 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. Not all investors are eligible to purchase I shares.
Bluerock is a leading institutional alternative asset manager with more than $15.5 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 is a closed-end interval fund that 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. As of Q3 2022, the value of the underlying real estate held by the securities in which the Fund is invested is approximately $383 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. 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 $17.3 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 prospectus should be read carefully before investing.
The Bluerock Total Income+ Real Estate Fund is distributed by ALPS Distributors, Inc (ALPS). Bluerock Fund Advisor, LLC is not affiliated with ALPS.
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.