Bluerock Total Income+ Real Estate Fund, a closed-end interval fund, has surpassed $7 billion in net assets, making it the first real estate focused interval fund to achieve such milestone. The fund previously exceeded $6 billion in net assets in June 2022.
Bluerock Total Income+ is the largest real estate-focused interval fund and the third largest of all active interval funds, ranked by net assets, Bluerock said, citing data from intervalfundtracker.com and Bloomberg. Year-to-date through August 2022, the fund has raised nearly $3 billion in new equity capital.
As of the second quarter of 2022, the value of the underlying real estate held by the securities in which the fund is invested was approximately $363 billion, including investments managed by Ares, Blackstone, Morgan Stanley, Invesco and RREEF, among others.
Bluerock also reported shareholder net returns of 26.6 percent over the trailing 12 months and 16.2 percent (Class I: TIPWX) as of August 31, 2022.
The fund, approaching its 10-year anniversary, had positive total returns in every calendar year and an annualized net return to shareholders since inception of 9.66 percent, with a 1.68 percent annualized standard deviation since inception through August 2022 (Class I: TIPWX).
“The fund’s strong performance has been driven by the investment team’s active management, including strategic over-weights to the industrial, residential, life science and specialty sectors, which represent over 88 percent of the underlying portfolio,” the company said.
Citing Morningstar data, Bluerock reported that the fund had the highest Sharpe and Sortino Ratios, key measures of risk-adjusted returns, of all domestic ‘40 Act funds, including over 6,100 equity, fixed income and specialty sector funds, since inception as of June 30, 2022. In addition, Class A and Class I shares both had the highest total net returns in the trailing five-year period out of all seven active real estate-focused interval funds, the company said.
TI+ recently paid its 38th consecutive quarterly distribution in June 2022 at the annual rate of 5.25 percent. Since inception in 2012 through August 2022, the fund’s NAV per share has increased nearly 50 percent from $25.00 per share to $38.10 per Class A share, the fund’s longest running share class.
“The Bluerock Total Income+ Fund has generated an exceptional combination of performance metrics, including, but not limited to, consistency of tax-efficient distributions, capital appreciation, and low volatility versus the broader indexes,” said Jeffrey Schwaber, chief executive officer of Bluerock Capital Markets. “TI+ has delivered high risk-adjusted returns through multiple market cycles, and in the current volatile market with stock and bond portfolios down sharply year-to-date, provides a much-needed outperforming portfolio component to its shareholders.”
He added, “Further, Bluerock Total Income+ has delivered strong performance in the past 12 months with net returns of nearly 3x greater than the fund’s long-term average, supporting our bullish outlook for shareholders in this current market…”
Bluerock is an alternative asset manager with more than $15 billion of acquired and managed assets.