NAV for Bluerock’s Total Income+ Real Estate Fund A-Shares Eclipse $30 Per Share
June 14, 2018 | James Sprow | BlueVault
In a press release June 13, 2018, Bluerock Fund Advisor announced that Bluerock’s Total Income+ Real Estate Fund’s (“TI+”, “Fund”, tickers: TIPRX, TIPPX, TIPWX, TIPLX) NAV for its A-shares, the Fund’s longest running share class, eclipsed the $30 per share mark representing 20% appreciation from its initial NAV of $25 per share (October 22, 2012). As of June 12, 2018, the Fund’s A-share was reported at $30.10 per share.
Blue Vault reports on select interval funds as their semi-annual shareholder reports are filed. Total Income+ Real Estate Fund filed its most recent semi-annual shareholder report for the period ending March 31, 2018, on June 7, 2018. The fund’s fiscal year ends September 30. According to the most recent report, the latest distribution of $0.3923 per share (Class A) is equivalent to a 5.25% annualized distribution rate on the 3/28/18 record dividend date NAV of $29.89 per share. This distribution also represents an effective 6.28% distribution rate on the inception $25.00 NAV per share (A share).
“In addition to paying consistent, tax-efficient distributions, totaling more than $7.42/share since inception, TI+ has delivered appreciation along with industry-leading performance in risk-adjusted returns, a key data point to measure both total return and volatility,” reported Jeffrey Schwaber, Chief Executive Officer of Bluerock Capital Markets.
According to Bluerock, TI+ has delivered risk adjusted returns (as measured by the Sharpe Ratio1) nearly four times higher than leading stock, bond, and REIT indexes². From its inception through May 2018, TI+ has generated total annualized returns of 8.21%, with lower volatility and lower correlation to the broader markets², and has paid 18 consecutive distributions at the current annualized rate of 5.25%*. Bluerock reported that, trailing years through March 2018, 2017 and 2016, TI+ generated the highest risk-adjusted return (as measured by the Sharpe Ratio) among all 1,200+ global open-end, closed-end, and exchange traded real estate funds in the Morningstar universe¹.
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 its 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.
About Total Income+ Real Estate Fund
TI+ 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.
TI+ is widely available through the independent broker-dealer network, registered investment advisors, and on numerous platforms including TD Ameritrade, Schwab, and Fidelity. The minimum investment in the fund is $2,500 ($1,000 for retirement plans) for Class A and Class C shares. Please visit the fund’s website for details at www.bluerockfunds.com.
¹ 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 1,200+ open end, closed end, and exchange traded funds in the global real estate sector equity category for the two year plus period ending 12/31/16, 12/31/17, and 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.
² 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.
*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. 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.
MSCI US REIT Index (Public REITs): A free float-adjusted market capitalization weighted index comprised of equity REITs that are included in the MSCI US Investable Market 2500 Index, with the exception of specialty equity REITs that do not generate a majority of their revenue and income from real estate rental and leasing operations. The index represents approximately 85% of the US REIT universe (www.msci.com ). Returns shown are for informational purposes and do not reflect those of the Fund. You cannot invest directly in an index and unmanaged indices do not reflect fees, expenses or sales charges. Risks include rising interest rates or other economic factors that may negatively affect the value of the underlying real estate.
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).
Bloomberg Barclays U.S. Aggregate Bond Index: A broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency). Provided the necessary inclusion rules are met, US Aggregate eligible securities also contribute to the multi-currency Global Aggregate Index and the US Universal Index, which includes high yield and emerging markets debt. Risks include rising interest rates or other economic factors that may negatively affect the value of the underlying bonds.
Sharpe Ratio: Measurement of the risk-adjusted performance. The annualized Sharpe ratio is 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. You cannot invest directly in an index. Benchmark performance should not be considered reflective of Fund performance.
Sources: Bluerock Press Release June 13, 2018; Blue Vault
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