James Sprow | Blue Vault |
In a press release dated June 6, 2018, Bluerock’s Total Income+ Real Estate Fund (“TI+,” tickers: TIPRX, TIPPX, TIPWX, TIPLX) announced it has realized significant increases in new capital inflows in both April and May setting back-to-back monthly records inception to-date. After reporting a record since fund inception raise of $37 million in April, May equity inflows jumped to $49 million representing a nearly 33% increase over the prior monthly record.
“TI+’s longstanding, industry-leading performance in total returns and risk-adjusted returns, coupled with reduced volatility and consistent NAV growth, is driving significant investor capital inflows”, reported Jeffrey Schwaber, Chief Executive Officer of Bluerock Capital Markets.
According to the press release, TI+ has delivered the highest risk adjusted returns (as measured by the Sharpe Ratio) compared to leading stock, bond, and REIT indexes by nearly four times¹. Since its inception through May 2018, TI+ has delivered a total annualized return of 8.21%, with lower volatility and lower correlation to the broader markets¹, and has paid 21 consecutive distributions, most recently at an annualized rate of 5.25%. Trailing year through March 2018, 2017 and 2016, TI+ generated the highest risk-adjusted return (as measured by the Sharpe Ratio) among all 1,257 global open-end, closed-end, and exchange traded real estate funds in the Morningstar universe².
TI+ provides an opportunity for individuals to invest in institutional real estate alongside some of the nation’s leading institutions, in a portfolio of nearly 2,900 Class-A properties throughout the U.S. and more than $165 billion in underlying real estate value.
The fund utilizes an exclusive partnership with Mercer Investment Management, Inc. to select top-rated institutional private real estate managers, including AEW, Blackstone, Morgan Stanley, Principal, Prudential, Clarion Partners, J.P. Morgan, Invesco and RREEF, among others. Mercer is the world’s leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, with over 3,300 clients worldwide, and $11 trillion in assets under advisement.
Blue Vault reported on Total Income+ Real Estate Fund for the period ending September 30, 2017, the fiscal year end for the fund. Interval funds file shareholder reports on a semi-annual basis and have many different fiscal year ends. The latest semi-annual report to shareholders for the period ending March 31, 2018, has not yet been filed. As of December 31, 2017, the fund reported total net assets of $865,425,606.
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 second quarter, the value of the underlying real estate held by the securities in which the Fund is invested exceeded $165 billion, including investments managed by AEW, Blackstone, Morgan Stanley, Principal, Prudential, Clarion Partners, J.P. Morgan, Invesco and RREEF, among others. The minimum investment in the Fund is $2,500 ($1,000 for retirement plans) for Class A, C, and L shares.
For copies of TI+ public company filings, please visit the U.S. Securities and Exchange Commission’s website at www.sec.gov or the Company’s website at www.bluerockfunds.com.
¹ Indexes with respective Standard Deviations and Sharpe Ratios (inception through 3/31/2018): Stocks: S&P 500, 14.92%, 1.40; Bonds: Bloomberg Barclays U.S. Aggregate Bond Index, 3.76%, 0.54; REITs: MSCI U.S. REIT Index, 17.60%, 0.58; TI+ Fund: 1.96%, 5.88. TI+ Correlations (inception through 3/31/2018): Stocks: S&P 500, 0.33; Bonds: Bloomberg Barclays U.S. Aggregate Bond Index, 0.13; MSCI U.S. REIT Index, 0.48.
² Morningstar Direct, annualized geometric Sharpe Ratio, based on daily data from 2016-2018. Using Morningstar data compiled by Bluerock Fund Advisor, LLC, TIPRX received the highest Sharpe Ratio among 1,257 open end, closed end, and exchange traded funds in the global real estate sector equity category for the one-year period ending 3/31/2018. TIPRX A Shares; no load. Sharpe Ratio is only one form of performance measure. The Sharpe Ratio would have been lower if the calculation reflected the load.
Sources: Bluerock Press Release June 6, 2018; Blue Vault
