Bluerock Capital Markets, LLC (“BCM” or “Company”), a distributor of institutional alternative investment products and the dedicated dealer manager for Bluerock, reported a new monthly record of equity capital inflows for the Company with approximately $480 million in May and more than $2.1 billion year-to-date. The Company’s trailing 3-month equity inflows annualize to approximately $5.4 billion.1
The record-setting pace was led by Bluerock’s flagship institutional real estate fund, Bluerock Total Income+ Real Estate Fund (the “Fund” or “Bluerock TI Fund”), with more than $1.92 billion of new capital inflows through May 2021. Bluerock TI Fund as eclipsed $6 Billion in net assets making it the largest real estate interval fund.
At a time when all major equity and fixed income indices are down YTD, Bluerock TI Fund generated record-high shareholder net returns for the Fund in the last 12 months of 30% as of May 31, 2022.* The Fund, approaching its 10-year anniversary, boasts positive total returns in every year and an annualized net return to shareholders since inception of 9.56%, with a remarkable 1.7% annualized standard deviation since inception (TIPWX, I-share, as of 5.31.22).
“Investors are seeking to generate high income coupled with growth for an inflation hedge and shield against the high volatility and potential large drawdowns in the equity markets and are rotating capital into institutional private real estate which, historically, has performed above its long-term average during inflationary periods2, said Jeffrey Schwaber, CEO of Bluerock Capital Markets. We believe our investment programs target investments in the real estate sectors that are poised to continue to outperform. Bluerock is delighted to provide its shareholders with outsized returns and low volatility, and we attribute our record inflows to the long-term stability and performance of the Fund”, added Schwaber.
The Company is also the dedicated dealer manager for Bluerock’s private placements, including those sponsored by Bluerock Value Exchange (BVEX), a national sponsor of syndicated 1031-exchange/DST offerings with a focus on Premier Exchange Properties™ in the residential and industrial sectors that seek to deliver stable cash flows and potential for value creation.
*Returns would have been lower if the calculation reflected the load.
1 Includes distribution reinvestment.
2 NCREIF, Bluerock. Past performance is not indicative of future results. Time periods include the years following post-recessionary periods from: 1978, 1990-92, 2000, and 2008-09.
Returns presented are total net return: expressed in percentage terms, the calculation of total return is determined by taking the change in price, reinvesting, if applicable, all income and capital gains distributions during the period, and dividing by the starting price. Returns greater than one year are annualized.
4 Inception date of the TI+ Fund Class A share is October 22, 2012 and Class I share is April 1, 2014.
5 The maximum sales charge for the Class A shares is 5.75%. Investors may be eligible for a waiver or a reduction in the sales charge.
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. For performance information current to the most recent month end, please call toll-free 1-888-459-1059. Past performance is no guarantee of future results.
The total annual fund operating expense ratio, gross of any fee waivers or expense reimbursements, is 2.09% for Class A and 1.83% for Class I. The Fund’s investment advisor has contractually agreed to reduce its fees and/or absorb expenses of the fund, at least until January 31, 2023 for Class A, and I-shares, to ensure that the net annual fund operating expenses will not exceed 1.95% for Class A, and 1.70% for Class I per annum of the Fund’s average daily net assets attributable to Class A, and Class I, respectively, 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.
About Bluerock
Bluerock is a leading institutional alternative asset manager with more than $14 billion of acquired and managed assets headquartered in Manhattan with regional offices across the U.S. Bluerock principals have a collective 100+ years of investing experience with more than $48 billion real estate and capital markets experience and have helped launch leading private and public company platforms.
About Bluerock Total Income+ Real Estate Fund
The Bluerock Total Income+ Real Estate Fund 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. The Fund utilizes an exclusive partnership with Mercer Investment Management, Inc., the world’s leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, with over 3,300 clients worldwide, and over $17.3 trillion in assets under advisement.
Investing in the Bluerock 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. All or 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.
Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no less than 5% of the Fund’s shares outstanding at net asset value. There is no guarantee that shareholders will be able to sell all of the shares they desire in a quarterly repurchase offer. Quarterly repurchases by the Fund of its shares typically will be funded from available cash or sales of portfolio securities. The sale of securities to fund repurchases could reduce the market price of those securities, which in turn would reduce the Fund’s net asset value.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Bluerock Total Income+ Real Estate Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained online at bluerockfunds.com. The prospectus should be read carefully before investing.
The Bluerock Total Income+ Real Estate Fund is distributed by ALPS Distributors, Inc (ALPS). Bluerock Fund Advisor, LLC is not affiliated with ALPS.
Definitions
Annual standard deviation is the daily percentage change in an investment. Standard deviation shows how much variation from the average exists with a larger number indicating the data points are more spread out over a larger range of values.
