Bluerock Total Income+ Real Estate Fund announced the Fund surpassed $3 billion in net assets under management (AUM) in September and is invested in a portfolio of over $238 billion of institutional real estate debt and equity holdings. The new milestone was reached as the Fund celebrates multiple other recent record achievements including record-setting monthly new equity capital raised in September of approximately $135 million and record-setting monthly shareholder returns of 3.10% and 3.13% in August 20211.
Further, the Fund reported leading risk-adjusted performance generating the highest Sharpe and Sortino Ratios (key risk-adjusted return metrics) of all 6,200+ domestic ’40 Act funds in the trailing 3-year, 5-year, and since inception time periods as of 8.31.212. Since inception in 2012 through September 2021, the Fund has generated annualized net returns of 7.92% and a 97.68% cumulative net return (A-share: TIPRX) with positive net returns in each calendar year and all 12-month periods. The Fund’s total net returns to shareholders from the trough of the pandemic (September 2020) is 15.43% (A-share: TIPRX) as of September 30, 2021, with a remarkable 95% up period percent (i.e. daily returns positive to neutral) with a notable 1.68% standard deviation over the same period, less than half the volatility of the Bloomberg U.S. Aggregate Bond Index (standard deviation of 3.82%) and 90% less volatile than the S&P 500 index (standard deviation of 16.68%)3.
The Fund recently reported its 35th consecutive quarterly distribution earlier in September bringing total Fund distributions to approximately $13 per share to its shareholders since inception (TIPRX, A-share), or approximately 52% on the $25/share inception share price.
“We are very proud to have reached this important new milestone as we continue to substantially grow the Fund’s AUM,” said Jeffrey S. Schwaber, CEO of Bluerock Capital Markets. “We believe capital follows performance and we’re pleased the Fund has a highly regarded portfolio management team that has continually delivered leading risk-adjusted performance for its shareholders since its inception,” added Schwaber.
“We believe achieving this AUM milestone is a testament to consistently delivering on the Fund’s investment objectives over the past nine years and across market cycles,” said Adam Lotterman, Co-CIO of Bluerock Fund Advisor. “We remain active investors and continue to position the Fund’s investments to take advantage of real estate trends and sectors that we believe are expected to deliver the highest risk-adjusted returns, while continuously seeking to mitigate risk in the portfolio. We maintain a bullish outlook for institutional real estate, particularly in industrial, apartment, and life sciences sectors, which comprise approximately 85% of the Fund’s investments4,” added Lotterman.
1 TI+ A shares, no load. Returns would be lower if the load was included. Includes dividend reinvestment.
2 Source: Morningstar Direct, annualized Sharpe Ratio and annualized Sortino Ratio; compiled by Bluerock Fund Advisor, LLC. TIPRX, no load. Sharpe Ratio, Sortino Ratio, standard deviation and max drawdown are only four forms of performance measure. The Sharpe Ratio and Sortino Ratio would have been lower if the calculation reflected the load. Past performance does not guarantee future results. Among of all U.S. open-end, closed-end, and exchange traded mutual funds (8,752 in the trailing 3-year period, 7,794 funds in the trailing 5-year period, and 6,245 funds since inception). There are significant differences between the products compared to for the highest Sharpe and Sortino ratio including fund objectives, strategies, risks, liquidity and fees and the differences between the product types (open end, closed end and ETFs). Based on daily data from 10.22.2012-7.31.2021.
3 Morningstar Direct, starting from 9.25.20 through 9.30.21.
4 For detailed Fund holdings, please visit http://bluerockfunds.com/investment-holdings/