Bluerock Capital Markets, LLC (“BCM”), the dedicated dealer manager for Bluerock Total Income+ Real Estate Fund announced a 35% increase in new capital inflows into TI+ for the month of February as compared to January and a near 100% increase as compared to the monthly run rate for the second half of 2020. The Fund is ranked as the top capital raising real estate interval fund from the onset of the pandemic through February 2021 and the highest returning real estate interval fund in 2020, generating positive returns for the eighth consecutive year with no down years since inception.1
The significant increase in new capital coincides with the Fund’s recent performance, having delivered an approximate 5.00% total net return (TIPWX: I-share) over an approximate 5 months from September 2020 through February 2021.2 Further, the Fund’s longest running share class average annualized return (TIPRX: A-share) has increased from 7.10% to 7.24% since 12.31.20, while providing a 5.25%* annual distribution rate, a potential hedge against inflation through portfolio appreciation, and attractive, low volatility total returns.
“There is strong demand in the market right now for institutional private real estate given its long history of generating high risk-adjusted returns with lower volatility to the broader markets” said Jeffrey Schwaber, CEO of BCM. “We believe the market has taken notice of our management team’s well-crafted tactical allocation to the higher performing real estate sectors and institutional managers, both prior to, and during the current pandemic-led economic disruption which we believe is a major contributing factor to the surge in new investor capital,” added Schwaber.
The Fund has paid 32 consecutive quarterly distributions to shareholders as of December 2020, historically representing an annual distribution rate of 5.25% on current NAV.*
As of December 31, 2020, the Fund reported gross asset value of the underlying portfolio of over $220 billion which was comprised of 4,300+ primarily core, high occupancy, institutional-quality real estate holdings with strategic sector weightings to 2020’s higher performing real estate sectors including 35% industrial, 33% apartment, 14% specialty (including life science, medical office, and self-storage), and a strategic underweight to office and retail sectors.3 Approximately 95% of the Fund’s sector allocations generated positive performance in 2020, despite the ongoing pandemic.4
1 The Stanger Market Pulse, sales from April – February 2021, Morningstar Direct, Interval Fund Tracker, real estate interval funds over $200 million AUM.
2 Total Return of TIPWX (I-share) from September 24, 2020 through February 28, 2021.
3 For detailed Fund holdings, please visit http://bluerockfunds.com/investment-holdings/. Holdings are subject to change.
4 Includes real estate sector returns as categorized by the National Council of real Estate Investment Fiduciaries National Property Index and underlying investments in real estate debt and specialty sectors.
TI+ Fund Class A and I Share Net Performance
Performance through 12.31.2020 |
||||||
YTD through 2.28.2021 |
Q4 2020 |
Since Inception Through 2.28.2021 |
One Year |
Five Year |
Annualized Since Inception5 |
|
TI+ Fund Class A |
2.19% |
2.52% |
7.24% |
1.37% |
5.70% |
7.10% |
TI+ Class A with Max Sales Charge6 |
-3.68% |
-3.36% |
6.48% |
-4.47% |
4.46% |
6.33% |
TI+ Fund Class I |
2.21% |
2.57% |
6.73% |
1.64% |
5.97% |
6.54% |
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.
5 Inception date of the TI+ Fund Class A share is October 22, 2012 and Class I share is April 1, 2014.
6 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 $220 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.