TI+ has been delivering on its primary objective, which is to generate current income with long term capital appreciation and low to moderate volatility compared to the broader markets. The Fund has delivered an 8.57% annualized return since inception with approximately 85% less volatility than the S&P 500 index and the MSCI US REIT Index. The Fund has also delivered high current income, with 15 consecutive quarterly distributions at an annualized rate of 5.25%, a significant part of which has been tax deferred.
TI+ invests the majority of its assets in a diversified portfolio of leading institutional private equity real estate securities (iPERE), providing individual investors with access to a portfolio of Class A real estate investments normally accessible only to institutions large enough to accommodate the securities’ multi-million dollar investment minimums. Current investments include Blackstone, Morgan Stanley, Principal, Clarion Partners, J.P. Morgan, and Prudential, among others. The minimum investment for the Fund, however, is $2,500 and shares are redeemable every quarter at a published NAV.
“When we launched the Fund four years ago, we recognized that iPERE had been proven to enhance the risk/return profile of diversified portfolios by providing equity-like returns with the volatility profile of fixed income,” explains Ramin Kamfar, Chairman and CEO of Bluerock, sponsor of TI+. “Current data from Morningstar continues to show that adding 30% iPERE (using the NCREIF Property Index) to a traditional 60/40 stock/bond portfolio reduces volatility over a 10-year period by over 250 bps while increasing return by 25 bps.”
To date, the Fund has made investments into underlying securities that include, collectively, more than $134 billion in real estate assets, comprising over 2,300 properties across the US with a combined average occupancy of 93% and a low 26% weighted average leverage ratio.
TI+ Performance
The Fund closed the quarter as of September 30, 2016, with an inception-to-date, annualized total return of 8.57% (Class A shares, excluding sales load) and an inception-to-date, annualized total return of 6.95% (Class A shares, with load). The Fund’s one-year, annualized total return as of September 30, 2016 was 7.51% (Class A shares, excluding sales load) and 1.31% (Class A shares, with load). The maximum sales charge for Class A shares is 5.75%.
About TI+
The Total Income+ Real Estate Fund offers individual investors access to a portfolio of institutional real estate securities managed by top-ranked institutions. 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 has an exclusive partnership with Mercer Investment Management, Inc., which is the world’s leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, Mercer has over 3,300 clients worldwide, and $9.1 trillion in assets under advisement.
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. Past performance is no guarantee of future results. The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until February 1, 2017, to ensure that the net annual Fund operating expenses will not exceed 1.91%, 2.66% and 1.66% per annum of the Fund’s average daily net assets attributable to Class A, Class C, and Class I shares, respectively, subject to possible recoupment from the Fund in future years. Without this waiver, expenses would be 2.46%, 3.25%, and 2.24% attributable to Class A, Class C, and Class I shares, respectively. Results shown reflect the deduction of all fees and expenses including the waiver, without which the results could have been lower. For performance data current to the most recent month end, please call toll-free 888-459-1059.
The Total Income+ Real Estate Fund (the “Fund”) is a continuously offered, non-diversified, closed-end management investment company that is operated as an interval fund.
Investing in the 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. There can be no assurance that any investment will be effective in achieving the Fund’s investment objectives, delivering positive returns or avoiding losses.
The Fund’s distribution policy is to make quarterly distributions to shareholders. The Fund’s inception date is 10/22/12; however, its first distribution was made 3/27/13. The level of quarterly distributions (including any return of capital) is not fixed. However, this distribution policy is subject to change. The Fund’s distribution amounts were calculated based on the ordinary income received from the underlying investments, including short-term capital gains realized from the disposition of such investments. Shareholders should not assume that the source of a distribution from the Fund is net profit. 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 the 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.
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.
For copies of TI+ public company filings, please visit the U.S. Securities and Exchange Commission’s website at www.sec.gov or visit www.bluerockfunds.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Total Income+ Real Estate Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 888-459-1059. The Total Income+ Real Estate Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. The prospectus should be read carefully before investing. Bluerock Fund Advisor, LLC is not affiliated with Northern Lights Distributors, LLC. | 3799-NLD-10/28/2016
