Amidst a Backdrop of Market Volatility and
Uncertainty, the Fund Posted Positive Returns 20 out of 20
Quarters
Griffin Capital Company, LLC (“Griffin Capital”) announced today
that its Griffin Institutional Access Real Estate Fund (NASDAQ:
GIREX, GCREX, GRIFX, GLREX, GMREX; the "Fund") observed its fifth
anniversary on June 30, 2019.
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Griffin Institutional Access® Real Estate
Fund Celebrates Five-Year Anniversary (Photo: Business Wire)
With a five-year track record of 20 out of 20 quarters of
positive performance and $3.48 billion in assets under management,
the Fund’s strategy and objectives, as directed by the Fund’s
portfolio management team, continue to create significant value to
investors.
“Over the past five years, we utilized a research-based approach
to determine a blend of private and public real estate securities
that delivered strong risk-adjusted returns. Just as importantly,
though, is the Fund’s track record of low volatility compared to
the broader markets. Since inception, the Fund’s standard deviation
is lower than the Bloomberg Barclays U.S. Aggregate Bond Index and
five times less than the S&P 500. We believe these numbers
suggest Griffin Institutional Access Real Estate Fund is a
compelling tool to help diversify a mixed-asset portfolio,” said
Randy I. Anderson, Ph.D., CRE., President, Griffin Capital Asset
Management Company, LLC and Portfolio Manager and Founding Partner
of Griffin Institutional Access Real Estate Fund.
From inception through June 30, 2019, the Fund generated a total
cumulative return of 41.38 percent, an annualized return of 7.17
percent with a standard deviation of 2.21 percent and a Sharpe
Ratio of 2.82. Over the same period, the Bloomberg Barclays U.S.
Aggregate Bond Index and the S&P 500 had a standard deviation
of 2.94 percent and 12.03 percent, respectively.1
“We’re very proud of the performance the Griffin Institutional
Access Real Estate Fund posted over its five-year history,” Dr.
Anderson continued. “Amidst a backdrop that included geopolitical
risk, the longest government shutdown in history, trade tensions,
and extreme volatility, we were able to allocate capital to
investment opportunities resilient to the market’s uncertainty. We
appreciate the support of our shareholders, as well as financial
advisors and wealth management firms, for their partnership over
the past five years and we will continue our pursuit to generate
strong risk-adjusted returns and protect the principal shareholders
have invested.”
1Data source: Morningstar Direct. Past performance is not a
guarantee of future results. Performance reflects the reinvestment
of dividends and other distributions. All metrics are based on
load-waived Class A shares and do not reflect a maximum sales
charge of 5.75% for Class A shares. If the data reflected the
deduction of such fees, the performance would be lower.
About Griffin Institutional Access Real Estate Fund
Griffin Institutional Access Real Estate Fund (the "Fund,"
tickers: GIREX, GCREX, GRIFX, GLREX, GMREX), a closed-end, interval
fund registered under the Investment Company Act of 1940, is an
actively-managed portfolio of private real estate funds and public
real estate securities, diversified by property type and geography,
offering daily pricing and periodic liquidity at net asset value.
The Fund will make quarterly offers to repurchase between five
percent and 25 percent of its outstanding shares at net asset
value. The Fund began reporting on NASDAQ on June 30, 2014 with an
initial share price of $25.00 and reported a share price of $27.24
for Class A, $26.48 for Class C, $27.51 for Class I, $27.12 for
Class L, and $26.90 for Class M as of June 30, 2019. The adviser of
the Fund is Griffin Capital Advisor, LLC, a majority owned
subsidiary of Griffin Capital Company, LLC.
To learn more about the Fund, visit:
https://www.griffincapital.com/griffin-institutional-access-real-estate-fund
About Griffin Capital Company, LLC
Griffin Capital Company, LLC ("Griffin Capital") is a leading
alternative investment asset manager that, for more than two
decades, has established a reputation for leadership, innovation,
and consistent results in the alternative investments industry.
Griffin Capital’s alternative investment solutions include three
groups of complementary products: actively managed interval funds
in the company’s Institutional Access® fund family, non-listed real
estate investment trusts (REITs) and tax-advantaged private
strategies. The firm’s investment strategies include diversified
core real estate and global corporate credit securities, as well as
direct real estate ownership in sector-specific portfolios focused
on net leased essential office and industrial assets, clinical
healthcare properties, and multifamily real estate assets.
These solutions include: Griffin Institutional Access® Credit
Fund, Griffin Institutional Access® Real Estate Fund, Griffin
Capital Essential Asset® REIT, Griffin Institutional Property
Exchange DSTs, and a Qualified Opportunity Zone fund. Griffin
Capital Securities, LLC, Member FINRA/SIPC, is the dealer manager
for non-traded programs and private offerings sponsored by Griffin
Capital Company, LLC and the exclusive wholesale marketing agent
for the Company’s interval funds distributed to investors through
independent and insurance broker-dealers, national wirehouses and
registered investment advisors.
Additional information is available at
www.griffincapital.com.
IMPORTANT DISCLOSURES
This is neither an offer to sell nor a solicitation to
purchase any security. Investors should carefully consider the
investment objectives, risks, charges and expense of Griffin
Institutional Access Real Estate Fund (the “Fund”). This and other
important information about the Fund is contained in the
prospectus, which can be obtained by visiting
www.griffincapital.com. Please read the prospectus carefully before
investing.
All performance calculations and metrics are sourced from
Morningstar Direct and are based on monthly data. CALCULATIONS AND
METRICS REFLECT A LOAD-WAIVED CLASS A SHARE. Investors of the
load-waived class A share do not pay a front-end sales load.
The inception date of the Fund’s Class A shares was 6/30/2014.
As of June 30, 2019, the Fund’s load-waived Class A shares returned
7.17% (annualized) since inception and had a one-year return of
6.78% (source: Morningstar Direct). The maximum sales charge is
5.75% for Class A shares and 4.25% for Class L shares. Class C
shareholders may be subject to a contingent deferred sales charge
equal to 1.00% of the original purchase price of Class C shares
redeemed during the first 365 days after their purchase.
Performance reflects the reinvestment of dividends and
distributions. Due to financial statement adjustments, returns may
differ. Past performance is not a guarantee of future results
and investment returns and principal value of the Fund will
fluctuate so that shares, when redeemed, may be worth more or less
than their original cost. Current performance may be lower or
higher than performance data quoted. Visit www.griffincapital.com
for current performance. As per the Fund’s prospectus dated July 2,
2019, the total expense ratio after fee waiver, reimbursement and
recoupment is 1.97% for Class A, 2.72% for Class C, 1.72% for Class
I, 2.22% for Class L, and 2.47% for Class M. The Fund has
contractually agreed to waive its fees (including offering
expenses, but excluding taxes, interest, brokerage commissions,
acquired fund fees and expenses and extraordinary expenses) to the
extent that they exceed 1.91% for Class A, 2.66% for Class C, 1.66%
for Class I, 2.16% for Class L, and 2.41% for Class M until
February 1, 2020. The Fund’s return does not reflect the deduction
of all fees and if the Fund return reflected the deduction of such
fees, the performance would be lower.
The Fund is a closed-end interval fund, the shares have no
history of public trading, nor is it intended that the shares will
be listed on a public exchange at this time. No secondary market is
expected to develop for the Fund’s shares. Limited liquidity is
provided to shareholders only through the Fund’s quarterly
repurchase offers for no less than 5% and no more than 25% of the
Fund’s shares outstanding at net asset value. There is no guarantee
that an investor will be able to sell all the shares that the
investor desires to sell in the repurchase offer.
The investment return and principal value of an investment will
fluctuate so that an investor’s shares, when redeemed, may be worth
more or less than the original cost. Due to these restrictions, an
investor should consider an investment in the Fund to be of limited
liquidity. The Fund is suitable only for investors who can bear the
risks associated with the limited liquidity of the Fund and should
be viewed as a long-term investment. Investing in the Fund is
speculative and involves a high degree of risk, including the risks
associated with leverage and the risk of a substantial loss of
investment. There is no guarantee that the investment strategies
will work under all market conditions.
The Fund will not invest in real estate directly, but, because
the Fund will concentrate its investments in securities of REITs
and other real estate industry issuers, its portfolio will be
significantly impacted by the performance of the real estate market
and may experience more volatility and be exposed to greater risk
than a more diversified portfolio.
This material has been distributed for informational purposes
only. The views and information discussed in this commentary are as
of the date of publication, are subject to change without
notification of any kind, and may not reflect the writer’s current
views. The views expressed represent an assessment of market
conditions at a specific point in time and should not be relied
upon as investment advice regarding a particular investment or
markets in general. Such information does not constitute a
recommendation to buy or sell specific securities or investment
vehicles. It should not be assumed that any investment will be
profitable or will equal the performance of the fund(s) or any
securities or any sectors mentioned herein. The subject matter
contained herein has been derived from several sources believed to
be reliable and accurate, but not guaranteed, at the time of
compilation. Griffin Capital Company, LLC and its subsidiaries do
not accept any liability for losses either direct or consequential
caused by the use of this information.
Annualized Return is calculated by annualizing cumulative return
(i.e., adjusting it for a period of one year). Annualized return
includes capital appreciation and assumes a reinvestment of
dividends and distributions.
The Bloomberg Barclays U.S. Aggregate Bond Index measures the
performance of the U.S. investment grade bond market. The S&P
500 is an index based on market cap of the 500 largest companies
having stock listed on the New York Stock Exchange (NYSE) or
NASDAQ. You cannot invest directly in an index. Index performance
does not represent actual Fund or portfolio performance.
Cumulative Return is the compound return of an investment. It
includes capital appreciation and assumes a reinvestment of
dividends and distributions.
Standard Deviation measures the average deviations of a return
series from its mean and is often used as a measure of
volatility/risk. A large standard deviation implies that there have
been large swings in the return series of the manager.
Sharpe Ratio measures risk-adjusted returns by calculating the
excess return (above the risk-free rate) per unit of risk (standard
deviation). The higher the ratio, the better the risk-adjusted
returns. The average 3-month U.S. Treasury T-bill auction was used
as the risk-free rate in this material.
The S&P 500 is an index based on market cap of the 500
largest companies having stock listed on the New York Stock
Exchange (NYSE) or NASDAQ.
Griffin Institutional Access Real Estate Fund is distributed
by ALPS Distributors, Inc. (1290 Broadway, Suite 1100, Denver, CO
80203, Member FINRA). ALPS Distributors, Inc. is not affiliated
with either Griffin Capital or any of its affiliates.
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version on businesswire.com: https://www.businesswire.com/news/home/20190709005528/en/
Media Contact Diana Keary Senior Vice President Griffin
Capital Company Dkeary@griffincapital.com 949-270-9303
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