New York, NY (February 25, 2016) – the Board of Directors of Bluerock’s Total Income+ Real Estate Fund (the “Fund or “TI+,” tickers: TIPRX, TIPPX, TIPWX) announced today that its investors have approved a proposal to engage RREEF America L.L.C., (“RREEF”) as sub-advisor on the publicly traded securities investments of the TI+ institutional real estate portfolio.
RREEF, which has a 40-year investment heritage as a manager of public and private real estate assets worldwide, currently manages over $47 billion in assets for more than 470 institutional clients globally. It is part of Deutsche Asset Management which has more than $835 billion in assets under management across all asset classes and is among the largest bank-owned asset managers worldwide.
The Board of TI+, in conjunction with the Bluerock Fund Advisor and Mercer Investment Management, Inc. (“Mercer”), evaluated multiple potential sub-advisors for the new role. Criteria included a deep and broad investment team, investment capabilities across multiple markets, a strong historical investment track record, the ability to deliver a customized investment strategy for TI+, as well as an ability to generate, in keeping with the TI+ mandate, strong risk-adjusted returns with relatively low volatility across market cycles.
“With approximately $300 million in assets under management, TI+ is large enough to benefit from RREEF’s management for the public real estate securities portion of the portfolio. RREEF offers a strong, market-leading track record, as well as one of the most sophisticated real estate investment teams worldwide,” said Ramin Kamfar, Bluerock’s Chief Executive Officer. “Significantly, RREEF will build and execute a bespoke investment strategy tailored to TI+ investment parameters rather than deploying an off-the shelf strategy utilized by other clients, which was important to us,” Mr. Kamfar said.
RREEF will make recommendations on the Fund’s public real estate securities investments, which are generally targeted to comprise approximately 20% of the TI+ portfolio. The Fund will also look to RFEEF to provide enhanced trading capabilities and wider investment options. RREEF’s global focus will also enable the fund to make tactical global investments to complement the fund’s U.S.-focused strategy.
Because all sub-advisory fees are borne by the Fund Advisor, the investors will not have to absorb the cost of any fees paid to RREEF.
Mercer will remain in its current role as sub-advisor to the Fund.
Since its inception on October 22, 2012, TI+ has paid 12 consecutive quarterly distributions, and has generated a higher risk-adjusted return than the leading indexes – including the S&P 500, MSCI U.S. REIT Index, and Barclays U.S. Aggregate Bond Index – from inception through December 2015. In fact, the Fund’s Sharpe Ratio, a measure of return relative to volatility, was more than four times that of the S&P 500 and more than six times that of the MSCI US REIT Index as reported by Morningstar.
The Fund closed the quarter as of December 31, 2015, with an inception-to-date, annualized total return of 9.33% (Class A shares, excluding sales load and an inception-to-date, annualized total return of 7.32% (Class A shares, with load). The Fund’s one-year, annualized total return as of December 31, 2015 was 8.28% (Class A shares, excluding sales load) and 2.07% (Class A shares, with load). The maximum sales charge for Class A shares is 5.75%.
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. Past performance is no guarantee of future results. The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the fund, at least until February 1, 2017, to ensure that the net annual fund operating expenses will not exceed 1.91%, 2.66% and 1.66% per annum of the Fund’s average daily net assets attributable to Class A, Class C, and Class I shares, respectively, subject to possible recoupment from the Fund in future years. Without this waiver, expenses would be 2.46%, 3.25%, and 2.24% attributable to Class A, Class C, and Class I shares, respectively. Results shown reflect the deduction of all fees and expenses including the waiver, without which the results could have been lower. For performance data current to the most recent month end, please call toll-free 888-459-1059.
The 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 has an exclusive partnership with Mercer Investment Management, Inc., which is the world’s leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, Mercer has over 3,300 clients worldwide, and $9.1 trillion in assets under advisement.
Investing in the 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. There can be no assurance that any investment will be effective in achieving the Fund’s investment objectives, delivering positive returns or avoiding losses.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Total Income+ Real Estate Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 888-459-1059. The Total Income+ Real Estate Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. The prospectus should be read carefully before investing. Bluerock Fund Advisor, LLC is not affiliated with Northern Lights Distributors, LLC. 3203-NLD-2/24/16.
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