Institutional Private Equity Real Estate (IPERE)

Access to a New Core Asset Class:
Institutional Private Equity Real Estate (iPERE)

43 YEAR TRACK RECORD | 9,100 PROPERTIES | $700 BILLION MARKET VALUE

Capital Appreciation

HYPOTHETICAL HISTORICAL GROWTH OF $10,000 | 12.31.1977 – 12.31.2020

Best-in-Class Institutionally Managed Real Estate

Attractive Income/Low Drawdowns

ANNUAL TOTAL RETURN AND INCOME RETURN | 01.01.1978 – 12.31.2020

Historically High Risk-Adjusted Returns vs. Broad Market Indexes

PERIODS ENDING | 12.31.2020

5 YEAR

Total
Return
Standard Deviation
Sharpe Ratio
Stocks
15.22%
17.23%
0.81
Bonds
4.44%
3.24%
1.00
REITs
4.84%
18.31%
0.20
iPERE
5.91%
1.37%
3.42

10 YEAR

Total
Return
Standard Deviation
Sharpe Ratio
Stocks
13.88%
15.00%
0.88
Bonds
3.84%
3.03%
1.06
REITs
8.30%
16.59%
0.46
iPERE
9.00%
1.85%
4.50

20 YEAR

Total
Return
Standard Deviation
Sharpe Ratio
Stocks
7.47%
17.07%
0.35
Bonds
4.83%
3.37%
0.99
REITs
9.43%
22.00%
0.36
iPERE
8.19%
4.61%
1.44

Potential Hedge to Rising Interest Rates/Inflation

IN THE SEVEN PERIODS OF RISING FED FUNDS RATES SINCE 1978,

HISTORICALLY, IPERE HAS GENERATED ATTRACTIVE POSITIVE RETURNS.¹

Sources: Morningstar Direct from 1.01.2001-12.31.2020 periods ending December 31, 2020 | Stocks: S&P 500 | Bonds: Bloomberg Barclays U.S. Aggregate Bond Index | REITs: MSCI U.S. REIT Index | iPERE (Institutional Private Equity Real Estate) total return from the National Council of Real Estate Investment Fiduciaries Property Index (NPI). Asset returns are shown for informational purposes only. Comparison excludes one year period as there are insufficient data points to calculate quarterly standard deviation. You can not invest in an index.

The Fund intends to employ a Multi-Manager approach by identifying and investing with ‘best in class’ institutional asset managers with expertise in managing portfolios of real estate and real estate-related securities. The term ‘best in class’ refers to Institutional Investment Funds that the Advisor and Mercer have identified through Mercer’s proprietary screening process as having above average prospects.

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.

Bloomberg Barclays U.S. Aggregate Bond Index (Bonds): 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.

S&P 500 (Stocks): 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).

Total Return is computed by adding the Income Return and the Capital Value Return. An NPI quarter-to-quarter return provides an estimate of the quarterly Internal Rate of Return (IRR) as if a property was purchased at the beginning of the quarter and sold at the end of the quarter with the investor receiving all net cash flow (NOI-Cap X) during the quarter. The NPI rate of return formula assumes: NOI is received at the end of each month during the quarter and capital expenditures occur at mid-quarter, partial sales occur at mid-quarter. A partial sale is the sale of a portion of the property such as excess land.

¹ A rising rate period is defined as two or more consecutive quarters of Federal Funds rate increases.

For current fund performance please visit bluerockfunds.com/performance. Past performance is not a guarantee of future returns.