Bluerock’s Total Income+ Real Estate Fund (Tickers: TIPRX, TIPPX, TIPWX) marks its third year on the market since the inception of its Class A shares and it’s on track to deliver notable risk-adjusted returns to its investors.
The fund began trading on October 22, 2012 and closed the quarter, as of September 30, 2015, with an inception-to-date, annualized total return of 8.94 percent (Class A shares, excluding sales load), and an inception-to-date, annualized total return of 6.76 percent (Class A shares, with load). The fund’s one-year, annualized total return as of September 30, 2015 was 7.13 percent (Class A shares, excluding sales load) and 0.96 percent (Class A shares, with load). The maximum sales charge for Class A shares is 5.75 percent.
With a 3-year Morningstar track record under its belt, the fund can now be compared against other investment alternatives. Executives at Bluerock expressed confidence that distribution of the fund would increase now that this important 3-year milestone has been reached.
The risk-adjusted return (as measured by the Sharpe Ratio) of the fund is significantly higher than broad market benchmark indexes, including the S&P 500, MSCI U.S. REIT Index, and Barclays Aggregate U.S. Bond Index. The fund’s Sharpe Ratio was more than four times that of the S&P 500 and more than six times that of the MSCI US REIT Index, as reported by Morningstar.
“We have met the critical three year mark while remaining true to our targeted investment goal of income, lower volatility and long-term capital appreciation,” said Ramin Kamfar, chief executive officer of Bluerock. “By investing in low leverage, low volatility, and institutional real estate investments, the fund has been able to produce reliable cash flows that are not highly correlated to daily market fluctuations, validating our investment thesis. This has been particularly important in the turbulent markets of 2015”.
Net assets under management for TI+ exceed $200 million. Recent TI+ investments include increased stakes in several of its institutional, private equity investments including Prudential PRISA I, UBS Trumbull Total Property Growth & Income, and Blackstone Property Partners, among others. TI+ currently maintains positions in 17 private equity real estate investments, with underlying assets valued at $100+ billion.
The Total Income+ Real Estate Fund invests the majority of its assets in institutional private equity real estate securities that are generally available only to institutional investors capable of meeting the multi-million dollar minimum investment criteria. As of the end of the third quarter 2015, the value of the underlying real estate exceeded $101 billion, including investments managed by AEW, Morgan Stanley, Principal, Prudential, Clarion Partners, J.P. Morgan, and RREEF, among others. The minimum investment in the fund is $2,500 ($1,000 for retirement plans) for Class A and Class C shares.
The Total Income+ Real Estate Fund offers individual investors access to a portfolio of institutional real estate securities and seeks 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. The fund utilizes an exclusive partnership with Mercer Investment Management, Inc., a leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, with more than 3,300 clients worldwide and $9 trillion in assets under advisement.