Griffin Institutional Access Real Estate Fund, a closed-end, interval fund sponsored by Griffin Capital, has reported its second highest quarterly return since inception.
Griffin Institutional Access Real Estate Fund’s Class I shares (NASDAQ: GRIFX) generated a positive return of 3.51 percent during the first quarter of 2021, capping a trailing one-year period during which the shares generated a 6.48 percent total return.
According to the company, the fund has generated positive returns in 25 of 27 quarters with annualized volatility (standard deviation) of 3.09 percent, which approximates the Bloomberg Barclays U.S. Aggregate Bond Index of 3.17 percent as of March 31, 2021.
Griffin noted that thus far in 2021, the fund has observed an uptick in investor demand, which it believes “has been driven by the need for attractive and tax-efficient durable income.”
Since June 30, 2020, the fund’s Class I shares (NASDAQ: GRIFX) generated a 7.89 percent return, outperforming traditional fixed income (Bloomberg Barclays Aggregate Bond Index) by 10.01 percent through March 31, 2021. As of April 1, 2021, Class I shares had a net asset value of $26.19 per share.
Randy Anderson, chief executive officer of Griffin Capital Asset Management Company, said “We were able to generate this attractive performance despite the backdrop of rising rates, which has proven to be a headwind for other income producing asset classes, such as traditional fixed income.”
Anderson indicated that they are continuing to see “compelling opportunities” driven by secular growth trends. He explained that as of December 31, 2020, more than 75 percent of the fund’s private equity portfolio was allocated within industrial, multifamily, and specialty (life sciences) properties designed to take advantage of strong potential growth.
“We believe the combination of relatively low interest rates and a recovering economy may provide a supportive environment for the real estate sector moving forward,” he said.
Griffin Institutional Access Real Estate Fund (NASDAQ: GIREX, GCREX, GRIFX, GLREX, GMREX), a closed-end interval fund, is an actively managed portfolio of private real estate funds and public real estate securities, diversified by property type and geography, offering daily pricing and periodic liquidity at net asset value. The fund, which is advised by Griffin Capital Advisor, will make quarterly offers to repurchase between 5 percent and 25 percent of its outstanding shares at net asset value.
Griffin Capital is an alternative investment asset manager that has owned, managed, sponsored or co-sponsored investment programs encompassing more than $19 billion in assets since 1995.