Bluerock Total Income+ Real Estate Fund Generates Substantial Increase in NAV Growth and Capital Inflows and Reiterates Bullish Outlook
May 5, 2021
New York, NY (May 5, 2021) – Bluerock Capital Markets, LLC (“BCM”), the dedicated dealer manager for Bluerock Total Income+ Real Estate Fund, a closed-end interval fund (“TI+” or the “Fund”) (Tickers: TIPRX, TIPPX, TIPWX, TIPLX) announced that through April 2021 the Fund has delivered an approximate 7.2% net total return to shareholders in the last seven months from the trough of the pandemic (September 2020).1 The Fund also reports a 93.2% positive and neutral net return days during the same timeframe. This notable return performance coincides with a significant increase in new capital inflows which are up over 145% in April from Q3 2020 average monthly capital raise.
The Fund was the highest returning institutional real estate interval fund in 2020, is the highest capital raising interval fund over the prior trailing 12 months and has generated positive returns in every year since its inception in 2012.2 Since inception, the Fund’s longest running share class (TIPRX: A-share) has delivered a 7.34% net annualized return to shareholders and a total cumulative return of approximately 83% inclusive of a 5.25%* tax-advantaged annual distribution rate with a standard deviation of only 1.71%, approximately 1/12th the volatility of the S&P 500 over the same time period. Further the Fund’s portfolio management team believes TI+ is well-positioned and weighted in high-conviction real estate sectors to continue to participate in attractive risk-adjusted returns which have historically followed post-recessionary periods.
Notably, while the S&P 500 and Dow Jones Industrial Average (DJIA) incurred a sell-off in Q2 2020 of -33.79% and -36.82% respectively, the Fund’s 2020 net return was never down more than -1.1% at any point during the year and delivered a solid fourth quarter to end 2020 with a positive net total return of 1.64% (TIPWX: I-share, the Fund’s most widely owned share class); the only institutional real estate interval fund to deliver positive returns in 20203.
“The Fund’s robust performance since inception and over the past several quarters have been driven by a combination of successful active management, excellence of manager selection, fund selection and sector weighting in its underlying institutional private real estate and debt investments, which led to its strategic allocations to the highest performing sectors – mainly industrial, life sciences, and multifamily”, said Jeffrey Schwaber, CEO of BCM. “As such, the Fund has been able to deliver very attractive returns with much less volatility compared to both its sector peers and the equity and fixed income markets”, added Schwaber.
As of March 2021, the Fund has paid 33 consecutive quarterly distributions to shareholders historically representing an annual distribution rate of 5.25% on current NAV.*
1 Total Return of TIPWX (I-share) from September 24, 2020 through April 30, 2021.
2 The Stanger Market Pulse, sales from April 2020 – April 2021, Morningstar Direct, Interval Fund Tracker, real estate interval funds over $200 million AUM.
3 Interval funds as identified by intervalfundtracker.com that primarily invest in institutional grade real estate.
TI+ Fund Class A and I Share Net Performance
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 2.18% for Class A and 1.92% 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, 2022 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 shares, 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.
The Bluerock Total Income+ Real Estate Fund is a closed-end interval fund that 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 Q4 2020, the value of the underlying real estate held by the securities in which the Fund is invested is approximately $228 billion, including investments managed by Ares, Blackstone, Morgan Stanley, Principal, PGIM, Clarion Partners, 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 sec.gov or the Company’s website at bluerockfunds.com.
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 $15.0 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 Bluerock Total Income+ Real Estate Fund is distributed by ALPS, Inc. The prospectus should be read carefully before investing. Bluerock Fund Advisor, LLC is not affiliated with ALPS, Inc.
About Bluerock
Bluerock is a leading institutional alternative asset manager with approximately $8.8 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 Capital Markets
Bluerock Capital Markets, LLC serves as the managing broker dealer for Bluerock and is a member of FINRA/SIPC. Formed in 2010, BCM distributes a broad range of institutional investment products with potential for growth, income, and tax benefits exclusively through broker dealers and investment professionals including the Bluerock Total Income+ Real Estate Fund, Bluerock Residential Growth REIT, Inc., and programs sponsored by Bluerock Value Exchange, LLC. BCM ranks #3 for capital fundraising from 2018-2020 among all active managing broker-dealers in the Direct Investments Industry, as ranked by Robert A. Stanger & Co.
Definitions
S&P 500: An index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe (Investopedia).
Dow Jones Industrial Average (DJIA): The index measures the performance of stocks of 30 US blue-chip companies covering all industries with the exception of transportation and utilities.
