New York, NY (September 27, 2018) – Bluerock’s Total Income+ Real Estate Fund (“TI+,” tickers: TIPRX, TIPPX, TIPWX, TIPLX) has paid a third quarter distribution of $0.3973 per share, or 1.31% for the quarter, based on the share price of $30.27 for shareholders of record as of September 26, 2018 (A-shares). This distribution amount represents an annualized rate of 5.25%* based on the current share price marking the Fund’s 23rd consecutive quarterly distribution.
“TI+ has paid distributions totaling $8.22 per share on its Class-A shares since inception (10.22.2012) and 67% of this amount has, historically, been tax deferred.1 The NAV for the Class A shares has increased over 20% from $25 per share at inception to $30.27, providing income, capital appreciation, and tax efficiency to investors.” said Jeffrey Schwaber, CEO of Bluerock Capital Markets.
TI+ continued to meet its stated objectives, including current income and capital appreciation as well as low correlation and low volatility relative to the broader markets. Since inception (10.22.2012), TI+ has generated higher risk-adjusted returns than major stock, bond and public REIT indexes2, while providing investors access to institutional, private equity real estate previously unavailable to individual investors.
Net assets under management for TI+ are over $1.1 billion. Recent TI+ investments include contributions to three institutional, private equity investments, including: Carlyle Property Investors, Harrison Street Core Property Fund, and Clarion Lion Properties Fund.3 TI+ currently maintains positions in 21 private equity real estate investments, with underlying assets valued at nearly $172 billion (holdings are subject to change at any time and should not be considered investment advice).
1 This portion of the distribution is characterized as return of capital. Shareholder cost basis is reduced by this amount, and possibly converted to capital gains with taxes due upon sale of the shares.
2 Indexes with respective Standard Deviations and Sharpe Ratios (inception through 6/30/2018): Stocks: S&P 500, 14.93%, 1.38; Bonds: Bloomberg Barclays U.S. Aggregate Bond Index, 3.76%, 0.46; REITs: MSCI U.S. REIT Index, 17.51%, 0.71; TI+ Fund: 1.92%, 5.99. TI+ Correlations (inception through 6/30/2018): Stocks: S&P 500, 0.32; Bonds: Bloomberg Barclays U.S. Aggregate Bond Index, 0.13; MSCI U.S. REIT Index, 0.48. There are limitations when comparing across various asset classes. Equities, fixed income, and real estate securities have significantly different risk and liquidity factors.
3 For detailed Fund holdings, please visit https://bluerockfunds.com/wp-content/uploads/TI-Portfolio-Update-Q2-2018.pdf
TI+ A Share Fund Performance
|Performance through 6.30.2018||Performance Through 9.26.2018|
|One Year||Five Year||Annualized Since Inception5||Annualized Since Inception|
|TI+ Fund Class A||7.84%||7.90%||8.24%||8.15%|
|TI+ Class A4 with Max Sales Charge||1.64%||6.63%||7.12%||7.07%|
Returns presented are total 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 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.
5 Inception date of the Fund is October 22, 2012.
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 2.38% for Class A, 3.12% for Class C, 2.15% for Class I, and 2.69% for Class L. The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the fund, at least until January 31, 2019 for Class A, C, I and L shares, to ensure that the net annual fund operating expenses will not exceed 1.95% for Class A, 2.70% for Class C and 1.70% for Class I, and 2.20% for Class L, per annum of the Fund’s average daily net assets attributable to Class A, Class C, Class I, and Class L 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 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 second quarter, the value of the underlying real estate held by the securities in which the Fund is invested exceeded $171 billion, including investments managed by AEW, Blackstone, Morgan Stanley, Principal, Prudential, 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.
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 $11 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.
* The Fund’s distribution policy is to make quarterly distributions to shareholders. The level of quarterly distributions (including any return of capital) is not fixed and this distribution policy is subject to change. Shareholders should not assume that the source of a distribution from the Fund is net profit. A portion of the distributions consist of a return of capital based on the character of the distributions received from the underlying holdings, primarily Real Estate Investment Trusts. The final determination of the source and tax characteristics of all distributions will be made after the end of each year. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. There is no assurance that the Company will continue to declare distributions or that they will continue at these rates. 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 online at www.bluerockfunds.com. The Total Income+ Real Estate Fund is distributed by ALPS, Inc. The prospectus should be read carefully before investing. Bluerock Fund Advisor, LLC is not affiliated with ALPS, Inc.
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). Returns shown are for informational purposes and do not reflect those of the Fund. You cannot invest directly in an index and unmanaged indices do not reflect fees, expenses or sales charges. Risks include rising interest rates or other economic factors that may negatively affect the value of the underlying real estate.
The Bloomberg Barclays U.S. Aggregate Bond Index: Measures the performance of the U.S. investment grade bond market. The index invests in a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States – including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year. Risks include rising interest rates, credit quality of the issuers and general economic conditions.
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 annualized standard deviation of the portfolio returns. You cannot invest directly in an index. Benchmark performance should not be considered reflective of Fund performance.
Correlation: The degree to which two securities move in relation to each other. Correlation is measured as a correlation coefficient, with a value falling between -1 and 1. 0 = No Correlation | 1 = Perfectly Positively Correlated | -1 = Perfectly Negatively Correlated