Total Income+ Real Estate Fund

The Bluerock Total Income+ Real Estate Fund (the “Fund”) offers investors a comprehensive real estate holding which seeks 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.

Potential Investment Benefits

Primarily derived from investing in income producing institutional real estate investment funds.
Daily Net Asset Value (NAV)
The Fund’s NAV is calculated and published each day after the close of the New York Stock Exchange.
The Fund’s interval structure allows for the redemption at NAV of a stated portion of outstanding shares each quarter.
Capital Appreciation
Sought through the selection of investments that provide the opportunity to achieve long-term growth with low to moderate volatility.
To seek a combination of current income, capital preservation and long-term capital appreciation, the Fund’s portfolio is intended to be widely diversified by manager, strategy, property sector and geography.
Low Correlation
The Fund strategically invests in a combination of institutional, private and publically traded real estate investments that may be lower correlated to the broader equity and fixed income markets.

This is an actively managed dynamic portfolio. There is no guarantee that any investment (or this investment) will achieve its objectives, goals, generate positive returns, or avoid losses.

Why Invest in Real Estate?
Adding real estate to a traditional investment portfolio of stocks, bonds, and treasury bills introduces a non-correlated asset that may reduce risk and enhance overall return.
Historical Returns for Selected Portfolio Mixes
15 Years (1998-2012) tif-historical-returns-chart-630x345

Past performance is no guarantee of future results.

Data Source
NCREIF, NAREIT, Standard & Poors, Federal Reserve from 01.01.1997 to 12.31.2011. “Stocks” are Standard & Poor’s 500 Index; “Bonds” are 10-year U.S. Government Bonds; “T-Bills” are 30-day Treasury Bills; and “Blended Real Estate” is a mix of the NCREIF Property Index (NPI), the NCREIF ODCE Index, and the FTSE/NAREIT Index. This chart is for illustrative purposes only and does not represent specific investments. Indices are not available for direct investment. (See below for important disclosures about the data).

Average returns represent compounded annual returns. Specific real estate offerings may differ materially compared to the direct real estate transactions that make up the Indexes. The NPI is based on the unleveraged returns from a large pool of individual, investment grade commercial real estate properties across retail, office, industrial, and apartment sectors. The market values of the properties in the NPI are determined by appraisals and not by market-based prices of the programs. The NPI data is based on institutional investments and is presented exclusive of leverage and fees. The NCREIF ODCE Index is based on the returns from several large private real estate funds and the performance of these fund components may vary substantially from the Fund. The FTSE/ NAREIT Index component represents the FTSE/NAREIT All Equity REIT Index designed to track the performance of publically traded Equity REITs that span the commercial real estate space across the US economy, offering exposure to all property sectors. The Indexes are not a measure of our Fund performance, but our management feels the Indexes are appropriate and accepted indexes for the purpose of evaluating the potential risks and returns of real estate as compared to other investments. The Fund differs from the Indexes in several material aspects including: the Fund can invest in debt securities; the Fund may incur leverage; the Fund requires the payment of up-front and other fees that typically exceed those of institutional programs, as well as expenses related to being a public company. All of the indexes show gross returns at the property level and do not reflect the impact of management and other investment entity fees and expenses as well as those associated with raising capital, which lowers returns. It is not expected that investments in the Fund will reflect any of the index returns.
Strategic Allocation
Recognizing the complexity of real estate investment opportunities, the Fund pursues its objectives by diversifying through a ‘fund-of-funds’ structure that offers investors a comprehensive real estate holding with a multi-strategy, multi-manager, multi-sector investment approach.
Real Estate Funds
The Fund seeks to invest in a proprietary portfolio of ‘best in class’ private real estate investment funds managed by institutional investment managers within two primary categories:
Private Equity Real Estate Funds
Acquire and receive rental income from the direct ownership of real estate.

Potential Benefits:
Income, Total Return, Lower Volatility

Publicly Traded Real Estate Funds
Invest in the debt and equity issued by real estate investment trusts (REITS) and companies.

Potential Benefits:
Income, Total Return, Liquidity

There is no guarantee that the Fund will achieve its objectives, generate profits, or avoid losses.

Disciplined Strategy
The Fund’s disciplined investment strategy focuses on identifying opportunities that:
  • Emphasize current income generation;
  • Have attractive risk-adjusted returns;
  • Low to moderate volatility; and
  • Low correlation to the broader markets.
Investment Selection
The Fund’s portfolio management team and its sub-advisor work together to structure a comprehensive ‘best in class’ real estate fund that is a ‘fund-of-funds’ tactically diversified by strategy, manager and real estate sector.

Investments that include multiple strategies generally have lower volatility than single strategy funds allowing the Fund to potentially achieve its objective of lower portfolio volatility as well as lower correlation with the broader markets.

The Fund employs a multi-strategy approach to diversify its risk-reward profile and the underlying types of real estate in which it invests including: (i) a strategic allocation of high quality portfolios that provide relatively lower and more stable returns; (ii) moderate risk portfolios that provide moderate returns; and (iii) more aggressive active asset management portfolios targeting capital appreciation.
The Fund’s advisors continuously analyze and monitor real estate investment managers to identify those with the experience, track record and appropriate strategy to help the Fund meet its objectives. Current approved managers include AEW, Invesco, and JP Morgan. Bluerock Fund Advisor, LLC is not affiliated with any of the managers described herein.
The Fund invests in strategies diversified by property type and geography including retail, office, multifamily, hospitality, industrial, residential, medical and/or self-storage sectors. Because each real estate sector has its own investment cycle, correlations across property sectors are generally low.

There is no guarantee that the Fund will achieve its objectives, generate profits, or avoid losses.