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Bluerock’s Total Income+ Real Estate Fund Hits Three Year Mark, Continues to Deliver High Risk-Adjusted Returns

New York, NY (October 27, 2015) – Bluerock’s Total Income+ Real Estate Fund (“Fund or TI+,” tickers: TIPRX, TIPPX, TIPWX) announced that it has passed the critical three-year mark since the inception of its A shares. Since inception through 9/30/2015, TI+ has generated a higher risk-adjusted return (as measured by the Sharpe Ratio) than broad market benchmark indexes, including the S&P 500, MSCI U.S. REIT Index, and Barclays Aggregate U.S. Bond Index.

10.22.2012 – 9.30.2015

Sharpe Ratio
TIPRX5.48
S&P 5001.25
MSCI U.S. REIT Index0.81
Barclays U.S. Aggregate Bond Index0.66
Source: Morningstar

Distinguished by low volatility and solid performance, the Fund’s Sharpe Ratio 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 (see table below).

“We have met the critical three year mark while remaining true to our targeted investment goal of income, lower volatility and long-term capital appreciation,” said Ramin Kamfar, CEO of Bluerock. “By investing in low leverage, low volatility, and institutional real estate investments, the Fund has been able to produce reliable cash flows that are not highly correlated to daily market fluctuations, validating our investment thesis. This has been particularly important in the turbulent markets of 2015”.

Net assets under management for TI+ exceed $200 million. Recent TI+ investments include increased stakes in several of its institutional, private equity investments including Prudential PRISA I, UBS Trumbull Total Property Growth & Income, and Blackstone Property Partners, among others. TI+ currently maintains positions in 17 private equity real estate investments, with underlying assets valued at $100+ billion. (Holdings are subject to change at any time and should not be considered investment advice.)

The Fund began trading on October 22, 2012 and closed the quarter as of September 30, 2015, with an inception-to-date, annualized total return of 8.94% (Class A shares, excluding sales load and an inception-to-date, annualized total return of 6.76% (Class A shares, with load). The Fund’s one-year, annualized total return as of September 30, 2015 was 7.13% (Class A shares, excluding sales load) and 0.96% (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, 2016, to ensure that the net annual fund operating expenses will not exceed 1.75%, 2.50% and 1.50% 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 2.72%, 3.54%, and 2.58% 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 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 the end of the third quarter 2015, the value of the underlying real estate held by the securities in which the Fund is invested exceeded $101 billion, including investments managed by AEW, Morgan Stanley, Principal, Prudential, Clarion Partners, J.P. Morgan, and RREEF, among others. The minimum investment in the Fund is $2,500 ($1,000 for retirement plans) for Class A and Class C shares.

For copies of TI+ public company filings, please visit the U.S. Securities and Exchange Commission’s website at www.sec.gov or the Company’s website at www.bluerockfunds.com.

About Total Income+ Real Estate Fund
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 utilizes an exclusive partnership with Mercer Investment Management, Inc., the world’s leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, with over 3,300 clients worldwide, and $9 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. 3749-NLD-10/26/2015.

Definitions and Risks

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 standard deviation of the portfolio returns.

Standard Deviation: The standard deviation of the daily percentage change in an investment. Standard deviation shows how much variation from the average exists with a larger number indicating the data points are more spread out over a larger range of values.

The indices shown are for informational purposes only and are not reflective of any investment.   As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Past performance is no guarantee of future results

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). Risks include the dynamic fluctuations of the market and possible loss of principal.

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). Risks include rising interest rates or other economic factors that may negatively affect the value of the underlying real estate.

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.