September 19, 2022
Bluerock Total Income+ Real Estate Fund Eclipses $7 Billion in Net Assets; Reports Continued Outsized Shareholder Returns
Bluerock Total Income+ Real Estate Fund Eclipses $7 Billion in Net Assets; Reports Continued Outsized Shareholder Returns
September 13, 2022 | Bluerock Total Income+ Real Estate Fund
Bluerock Total Income+ Real Estate Fund (“Bluerock Total Income+,” “the Fund,” “TI+,” tickers: TIPRX, TIPPX, TIPWX, TIPLX, TIPMX) announced today the Fund has surpassed $7 billion in net assets, making it the first real estate focused interval fund to achieve such milestone. Bluerock Total Income+ is the largest real estate-focused interval fund and the 3rd largest of all active interval funds (ranked by net assets).1 Year-to-date through August, the Fund has raised nearly $3 billion in new equity capital.2 TI+ is invested in a diverse portfolio of institutional, private real estate, consisting of approximately $363 billion in underlying institutional real estate equity and debt investments.
Bluerock Total Income+ is pleased to report continued outsized shareholder net returns of 26.55% over the trailing 12-months and 16.2% YTD (TIPWX, I-share, as of 8.31.22) where both equity and fixed income securities are down sharply (TIPWX, I-share) as of 8.31.2022. The Fund, approaching its 10-year anniversary, boasts positive total returns in every calendar year and an annualized net return to shareholders since inception of 9.66%, with a low 1.68% annualized standard deviation since inception (TIPWX, I-share) as of 8.31.2022. We believe the Fund’s strong performance has been driven by the investment team’s active management, including strategic over-weights to the industrial, residential, life science and specialty sectors, which represent over 88% of the underlying portfolio.
Bluerock Total Income+ has also been a consistent leader in risk-adjusted performance generating the single highest Sharpe and Sortino Ratios (key measures of risk-adjusted returns) of all domestic ’40 Act funds (including over 6,100 equity, fixed income and specialty sector funds) since inception as of 6.30.22, per Morningstar.3 TI+’s peer-leading performance extends to both its A-shares and I-shares, reporting the highest total net returns in the trailing five-year period among all active real estate sector interval funds (seven funds) as of 8.31.2022.4 Past performance is no guarantee of future results.
TI+ recently paid its 38th consecutive quarterly distribution in June 2022 at the annual rate of 5.25% based on current net asset value (NAV).5 The Fund’s quarterly distributions have also been highly tax efficient with approximately 63% of the distributions enjoying tax deferral for even higher taxable equivalent yields. In addition, TI+’s NAV per share has increased more than 50% from $25.00 per share to $38.10 per share adding significant appreciation to the distribution for attractive total returns (A-share, TI+’s longest running share class as of 8.31.22).
“The Bluerock Total Income+ Fund has generated an exceptional combination of performance metrics, including, but not limited to, consistency of tax-efficient distributions, capital appreciation, and low volatility versus the broader indexes,” said Jeffrey Schwaber, CEO of Bluerock Capital Markets. “TI+ has delivered high risk-adjusted returns through multiple market cycles, and in the current volatile market with stock and bond portfolios down sharply year-to-date, provides a much-needed outperforming portfolio component to its shareholders. Further, Bluerock Total Income+ has delivered strong performance in the past 12 months with net returns of nearly 3x greater than the Fund’s long-term average, supporting our bullish outlook for shareholders in this current market,” added Schwaber. “Of over 6,100 open, closed and exchange traded funds in the entire Morningstar universe since TI+’s inception 10 years ago, only one fund can boast the single highest risk-adjusted return of all funds, and that is Bluerock Total Income+ Real Estate Fund.”
1 Source: Intervalfundtracker.com, Bloomberg.
2 YTD new capital amounts include distribution reinvestment.
3 Source: Morningstar Direct based on daily data as of 6.30.2022, among of all U.S. open-end, closed-end, and exchange traded funds (6,101 funds since inception) TIPRX generated the highest annualized Sharpe Ratio and annualized Sortino Ratio; compiled by Bluerock Fund Advisor, LLC. TIPRX, no load. Sharpe Ratio, and Sortino Ratio are only two forms of performance measure. The Sharpe Ratio and Sortino Ratio would have been lower if the calculation reflected the load. The funds considered in the analysis have significant differences, including various objectives, strategies, liquidity, and fees (see definitions below).
4 Source: Morningstar Direct, A-shares, load waived, trailing 5 years through 8.31.2022, all real estate interval funds as identified by intervalfundtracker.com. The 5-year comparison includes seven funds. Past performance does not guarantee future results.
5 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.
TI+ A Share and I Share Fund 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.
6 Inception date of the TI+ Fund Class A share is October 22, 2012 and Class I share is April 1, 2014.
7 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 or visit bluerockfunds.com/performance. 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 Class I 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. Not all investors are eligible to purchase I shares.
Bluerock is a leading institutional alternative asset manager with more than $15 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.
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 Q2 2022, the value of the underlying real estate held by the securities in which the Fund is invested is approximately $363 billion, including investments managed by Ares, Blackstone, Morgan Stanley, Principal, Prudential, 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.
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.
Sharpe Ratio: Measurement of the risk-adjusted performance calculated by subtracting the annualized risk-free rate (3-month Treasury Bill) from the annualized rate of return for a portfolio and dividing the result by the annualized standard deviation of the portfolio returns.
Sortino Ratio: Measurement of risk-adjusted performance and a modification of the Sharpe ratio to measure the return to “bad” volatility (i.e., volatility caused by negative returns considered bad or undesirable by an investor), calculated as the excess return over the risk-free rate divided by the downside semi-variance.
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.
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