Total Income+ Real Estate Fund Achieves 5-Year Milestone: Generated Higher Risk-Adjusted Returns than Leading Stock, Bond and REIT Indexes by Providing Unique Access to Leading Institutional Managers
New York, NY (October 24, 2017) – Bluerock’s Total Income+ Real Estate Fund (“TI+,” tickers: TIPRX, TIPPX, TIPWX, TIPLX) celebrated its five-year milestone on October 22. In the five years since inception, TI has delivered the highest risk adjusted returns (as measured by the Sharpe Ratio) compared to leading stock, bond, and REIT indexes by nearly four times¹.
TI+ provides an opportunity for individuals to invest in institutional real estate alongside some of the nation’s leading institutions, in a portfolio of nearly 2,500 Class-A properties throughout the U.S. and more than $150 billion in underlying real estate value.
Since inception, TI has delivered a total annualized return of 8.21%, with low volatility and low correlation to the broader markets, and has paid 19 consecutive distributions, most recently at an annualized rate of 5.25%. In 2016, TI+ scored the highest Sharpe Ratio among all 1,300-plus open and closed-end real estate funds in the Morningstar universe².
The fund utilizes an exclusive partnership with Mercer Investment Management, Inc. to select top-rated institutional private real estate managers, including AEW, Blackstone, Morgan Stanley, Principal, Prudential, Clarion Partners, J.P. Morgan, Invesco and RREEF, among others. Mercer is the world’s leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, with over 3,300 clients worldwide, and $10 trillion in assets under advisement.
“We are strong believers in the value of institutional private equity real estate within a traditional investment portfolio of stocks, bonds, and treasury bills because these investments introduce a non-correlated asset that has, historically, reduced volatility while enhancing total return,” said Ramin Kamfar, Chief Executive Officer of Bluerock.
About Total Income+ Real Estate Fund
TI+ 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.
TI+ is widely available through the independent broker-dealer network, registered investment advisors, and on numerous platforms including TD Ameritrade, Schwab, and Fidelity. The minimum investment in the fund is $2,500 ($1,000 for retirement plans) for Class A and Class C shares. Please visit the fund’s website for details at www.bluerockfunds.com.
¹ Morningstar Direct. Stocks: S&P 500; Bonds: Bloomberg Barclays U.S. Aggregate Bond Index, REITs: MSCI U.S. REIT Index. In the 5-year time period from 10/23/2012 to 10/22/2017, the sharpe ratio for each index was as follows: TIPRX 5.79 | Stocks 1.50 | Bonds 0.70 | REITs 0.80.
² Morningstar Direct, annualized Sharpe Ratio, based on daily data from 2016. Using Morningstar data compiled by Bluerock Fund Advisor, LLC, TIPRX received the highest Sharpe Ratio among 1,349 open and closed end funds in the global real estate sector equity category for the one-year period ending 12/31/2016. TIPRX A Shares; no load. The Sharpe Ratio would have been lower if the calculation reflected the load.
TI+ A Share Fund Performance
|Performance through 9.30.2017
|Performance Through 10.22.2017
|One Year as of 9.30.2017
|Three Years as of 9.30.2017
|Since Inception Through 9.30.2017²
|Five Years as of 10.22.2017
|TI+ Fund Class A
|TI+ Class A¹ with Max Sales Charge
1 The maximum sales charge for the fund is 5.75%. Investors may be eligible for a reduction in sales charges.
2 Inception date of the Fund is October 22, 2012.
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. Past performance is no guarantee of future results. The fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the fund, at least until February 1, 2018 for Class A, C, and I shares, and at least until May 31, 2018 for Class L shares, to ensure that the net annual fund operating expenses will not exceed 1.89% for Class A, 2.64% for Class C and 1.64% for Class I, and 2.14% for Class L, 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.
For copies of TI+ public company filings, please visit the U.S. Securities and Exchange Commission’s website at www.sec.gov or the Company’s website at www.bluerockfunds.com.
Bluerock is a national asset management and real estate investment firm headquartered in Manhattan with reginal offices across the U.S. Operating in all real estate sectors, Bluerock offers its clients a mix of both public and private institutional investments solutions with potential for growth, income, and tax benefits. Bluerock principals have a collective 115+ years of investing experience, have been involved with acquiring over 35 million square feet of real estate with approximately $10 billion in value, and have helped launch leading real estate private and public company platforms. Today Bluerock manages more than $4 billion in AUM comprised of more than 20 million square feet of commercial and residential real estate. Please visit www.bluerockre.com for details.
Investing in the 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. 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.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Total Income+ Real Estate Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained online at www.bluerockfunds.com. The Total Income+ Real Estate Fund is distributed by ALPS Distributors, Inc. (ALPS). The prospectus should be read carefully before investing. Bluerock Fund Advisor, LLC is not affiliated with ALPS.
BLU000127 | 12/31/2018
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 re ect the risk/return characteristics of the large cap universe (Investopedia).
Bloomberg Barclays U.S. Aggregate Bond Index: A broad-based agship benchmark that measures the investment grade, US dollar-denominated, xed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency xed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency). Provided the necessary inclusion rules are met, US Aggregate eligible securities also contribute to the multi-currency Global Aggregate Index and the US Universal Index, which includes high yield and emerging markets debt. Risks include rising interest rates or other economic factors that may negatively affect the value of the underlying bonds.
MSCI US REIT Index (Public REITs): A free oat-adjusted market capitalization weighted index comprised of equity REITs that are included in the MSCI US Investable Market 2500 Index, with the exception of specialty equity REITs that do not generate a majority of their revenue and income from real estate rental and leasing operations. The index represents approximately 85% of the US REIT universe (www.msci.com). Returns shown are for informational purposes and do not re ect those of the Fund. You cannot invest directly in an index and unmanaged indices do not re ect fees, expenses or sales charges. Risks include rising interest rates or other economic factors that may negatively affect the value of the underlying real estate.
Sharpe Ratio: Measurement of the risk-adjusted performance. The annualized Sharpe ratio is 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. You cannot invest directly in an index. Benchmark performance should not be considered re ective of Fund performance.