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
Performance through 3.31.2021 |
|||||
YTD through 4.30.2021 |
Since Inception Through 4.30.2021 |
One Year |
Five Year |
Annualized Since Inception4 |
|
TI+ Fund Class A |
4.28% |
7.34% |
1.37% |
5.70% |
7.10% |
TI+ Class A with Max Sales Charge5 |
1.71% |
6.60% |
-4.47% |
4.46% |
6.33% |
TI+ Fund Class I |
4.36% |
6.87% |
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.
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.