Bluerock Total Income+ Real Estate Fund, a closed-end interval fund that recently surpassed $4 billion in assets under management, has reported record new equity capital inflows in January 2022 of approximately $278 million.
Bluerock TI+ Fund reported a trailing 12-month return of 24.10 percent (Class A: TIPRX), with a 1.7 percent annualized standard deviation since inception (Class I: TIPWX), both as of February 14, 2022. The fund’s longest running share class, Class A shares (TIPRX, no-load), had an 8.93 percent annualized net return since inception in October 2012 through February 14, 2022.
Bluerock said that for the trailing 12-month period ending January 31, 2022, the fund “outperformed the leading stock and bond indices (stocks: 23.29 percent, bonds: -2.97 percent) with approximately one-eighth the volatility of stocks and less than half the volatility of bonds,” as measured by standard deviation.
The company added that, year-to-date, during the recent equity market volatility, the fund “delivered an approximate 1,150 basis point beat of the S&P 500, up nearly 4 percent from the S&P 500’s -7.5 percent returns,” as of February 14, 2022.
“Historically, institutional real estate performs above its long-term average when emerging from recessionary periods and during inflationary periods. We stated as our house view in late 2020 that we were bullish on institutional real estate and then the fund delivered an approximate 22 percent return to its shareholders in 2021. We maintain our bullish outlook, especially in Bluerock TI+ Fund’s high conviction sectors,” said Jeffrey Schwaber, chief executive officer of Bluerock Capital Markets.
Bluerock TI+ Fund paid its 36th consecutive quarterly distribution in December 2021 at the annual rate of 5.25 percent based on current NAV, bringing total fund distributions paid to shareholders of more than $13.40 per share since inception (Class A: TIPRX), the company said.
Since inception in 2012, the NAV per share for Class A shares has increased more than 40 percent from $25.00 per share to more than $35.00 per share, as of January 27, 2022. Due to the growth in NAV, shareholders who purchased at the inception NAV of $25.00 per share reportedly earned an equivalent 7.1 percent annualized distribution rate.
Citing Morningstar data, Bluerock Total Income+ also reported the highest Sharpe and Sortino Ratios, key measures of risk-adjusted returns, of all domestic ‘40 Act funds in the trailing five years (out of 7,864 funds) and since inception (out of 6,155 funds), as of January 31, 2022.
In addition, Bluerock said that Class A and Class I shares both reported the highest total net returns in the trailing five-year period out of all seven active real estate-focused interval funds.
The Bluerock Total Income+ Real Estate Fund invests most of its assets in private equity real estate securities. As of the fourth quarter of 2021, the value of the underlying real estate held by the securities in which the fund is invested is approximately $292 billion, including investments managed by Ares, Blackstone, Morgan Stanley, Principal, Prudential, Clarion Partners, Invesco and RREEF, among others.
Bluerock is an alternative asset manager with more than $12 billion of acquired and managed assets.
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