Total Income+ Real Estate Fund Pays 1Q Distribution of $0.38 per share; Up 2.63%
New York, NY (April 2, 2015) – Bluerock’s Total Income+ Real Estate Fund (“Fund or TI+,” tickers: TIPRX, TIPPX, TIPWX) announced today it has paid a first quarter distribution of $0.3781 per share, or 1.31% for the quarter based on the share price of $28.81 for shareholders of record as of March 27, 2015 (A-shares)*. This distribution represents a 2.63% increase year-over-year and an annualized distribution rate of 5.25%.
“TI+ continues to perform well with low volatility compared to leading stock, REIT, and bond indexes (see definitions below). Year-to-date, the Fund nearly tripled the return of the S&P 500 with less than one-third of the volatility. The Fund’s public allocation strategy, which, in the first quarter, focused on equity REITs, was validated in combination with broad, steady gains in the institutional private equity real estate portfolio.” said Ramin Kamfar, Bluerock’s Chief Executive Officer.
Assets under management for TI+ are currently in excess of $142 million. Recent investments include Blackstone Property Partners (2%), Blackstone’s first open-end real estate private equity vehicle, and Prudential PRISA I (less than 1%), founded in 1970 and with approximately $18.4 billion of gross assets**.
The Fund began trading on October 22, 2012 and closed the quarter as of March 31, 2015, with an inception-to-date, annualized total return of 9.96% (Class A shares, excluding sales load) and an inception-to-date, annualized total return of 7.31% (Class A shares, with load). The Fund’s one-year total return as of March 31, 2015 was 8.20% (Class A shares, excluding sales load) and 1.98% (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 waiver, without which the results could have been lower. 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 calculated using SEC form N-1A.
*The Fund’s distribution policy is to make quarterly distributions to shareholders. The Fund’s inception date is 10/22/12; however, its first distribution was made 3/27/13. The level of quarterly distributions (including any return of capital) is not fixed and is subject to change. The Fund’s distribution amounts were calculated based on the ordinary income received from the underlying investments, including short-term capital gains realized from the disposition of such investments. 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 the 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.
** As of December 31, 2014.
Portfolio holdings are subject to change at any time and should not be considered investment advice. 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 first quarter, the value of the underlying real estate held by the securities in which the Fund is invested exceeded $89 billion, including investments managed by AEW, Morgan Stanley, Principal, Clarion Partners, J.P. Morgan, Prudential, 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. 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. However, 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 the 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 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. 3176-NLD-4/2/2015
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). It is not possible to invest in an index, 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
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.
AGG: The iShares Core Total U.S. Bond Market Exchange Traded Fund (ETF), previously the iShares Barclays Aggregate Bond Fund. The fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Barclays U.S. Aggregate Bond Index. AGG is used as a proxy for the total U.S. investment grade bond market (iShares by Blackrock, Yahoo Finance). A rise in interest rates could cause a decline in the value of fixed income securities.