Bluerock’s TI+ Real Estate Fund Reports Strong Performance, with Risk-Adjusted Excess Return (Alpha) of over 8.8% vs. the S&P500

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Bluerock’s Total Income+ Real Estate Fund (“Fund or TI+,” tickers: TIPRX, TIPPX, TIPWX) announced results for 2014, reporting a total return of 8.08% for the year ending December 2014, and an annualized total return of 9.82% since inception on its Class A no-load shares. Returns on the fund’s Class A shares with load are 1.87% for the year ending December 2014 and from inception-to-year-end, annualized total returns on the Class A shares with load are 6.88%.

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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 March 31, 2015, to ensure that the net annual fund operating expenses will not exceed 1.84%, 2.59% and 1.59% 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 5.07%, 5.82%, and 4.82% 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. Results shown reflect the waiver, without which the results could have been lower. 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 began trading on October 22, 2012. The maximum sales charge for Class A shares is 5.75%.

Bluerock is also reporting that TI+’s (no-load) Class A shares delivered Excess Risk-Adjusted Returns (as measured by Alpha), versus multiple major indices including the S&P 500, the MSCI U.S. REIT Index, and the Barclays AGG, all achieved with low correlation and low volatility.
Bluerock cites the following TI+ metrics:

  •     Risk-adjusted excess returns versus the S&P 500, the MSCI U.S. REIT Index, and the Barclays AGG, as measured by the Fund’s Alpha. TI+ (no load) reported annualized Alpha of 8.86% vs. the S&P 500, 8.85% vs. the U.S. MSCI REIT, and 9.16% vs. the Barclays AGG.*
  •     Higher risk-adjusted performance versus the S&P 500, the MSCI U.S. REIT Index, and the Barclays AGG, as measured by the Fund’s Sharpe Ratio. TI+ (no load) reported an annualized Sharpe ratio of 2.37 vs. 1.21 for the S&P 500, 0.69 for the MSCI U.S. REIT index, and 0.39 for the Barclays AGG.*
  •     Low correlation to the S&P 500, the MSCI U.S. REIT Index, and the Barclays AGG, as measured by the Fund’s correlation coefficient. TIPRX reported correlation of 0.12 vs. the S&P 500, 0.15 vs. MSCI U.S. REIT Index, and 0.07 vs. the Barclays AGG.*
  •     Lower volatility versus the S&P 500, the MSCI U.S. REIT Index, and the Barclays AGG, as measured by the Fund’s Standard Deviation. TI+ reported Standard Deviation of 4.08% vs. 16.88% for the S&P 500, 19.71% for the MSCI U.S. REIT index, and 4.61% for the Barclays AGG.*

“TI+ distinguished itself in the marketplace by its ability to deliver risk-adjusted excess returns (Alpha) to the investor relative to the major indices cited above, for the one year period ending 12/31/2014. The Fund has delivered current income with low volatility and low correlation consistently, which makes it particularly relevant in highly volatile periods like the one we are likely entering, now,” said Ramin Kamfar, Chief Executive of Bluerock.

TI+ invests in low leverage, institutional real estate whose cash flows are not historically correlated to daily market fluctuations. “We believe TI+ may be ideal for long term investors who value income, lower volatility, and lower correlation to the stock and public REIT market,” said Mr. Kamfar.

About Total Income+ Real Estate Fund
TI+ provides individual investors access to a diversified portfolio of leading, private equity real estate securities managed by top-ranked fund managers, otherwise accessible only to institutional investors large enough accommodate the funds' multi-million dollar minimum investment criteria.
Underlying assets of the funds in which TI+ is currently invested exceed, in aggregate, $71 billion, and include AEW Core Property Trust, JP Morgan Growth & Income Fund, Morgan Stanley Prime Property Fund, RREEF America II REIT, Clarion Lion Properties Fund, Heitman America Real Estate Trust, Blackstone Property Partners, Stockbridge Smart Markets Fund and Principal Enhanced Property Fund.

TI+ seeks to provide a comprehensive real estate holding. It is designed to provide a combination of current income, capital preservation, long-term capital appreciation and enhanced portfolio diversification with low to moderate volatility as well as low correlation to the broader equity and fixed income markets. The Fund is sub-advised by Mercer Investment Management, Inc., the world’s leading advisor to endowments, pension funds, sovereign wealth funds and family offices. Mercer, which has $9.0 trillion in assets under advisement, and more than 3,000 clients worldwide, works closely with Bluerock on fund selection and strategy.

The minimum investment for TI+ investors, is $2,500 ($1,000 for retirement plans) the Fund offers liquidity to investors quarterly, with NAV published daily.

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

*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.

There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses.

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 in 2014 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. 3112-NLD-2/13/2015

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 annualized standard deviation of the portfolio returns. You cannot invest directly in an index. Benchmark performance should not be considered reflective of Fund performance.

Annualized Standard Deviation: The standard deviation of the daily percentage change in an investment multiplied by the square root of the number of trading days in the period. 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.

Alpha: A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund's alpha.

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 (http://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.

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Joshua Hoffman
Bluerock Real Estate
+1 (208) 475-2380
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