Griffin Capital Company (“Griffin Capital”) today announced that
its Griffin Institutional Access Real Estate
Fund (NASDAQ:GIREX) (NASDAQ:GCREX) (NASDAQ:GRIFX)
(NASDAQ:GLREX) (NASDAQ:GMREX) (the “Fund”) has exceeded $2
billion in assets under management. The Fund achieved this mark on
December 26, 2017, nearly three-and-a-half years since its launch
on June 30, 2014.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/a72f2064-b082-43c8-8025-3710baffa7cc
“We could not be more pleased with reaching this
significant milestone. Reaching $2 billion in assets under
management demonstrates the financial community’s acceptance of the
interval fund structure and the Fund’s value proposition.
Access to both public real estate and private institutional real
estate has proven to be a formula for success. This design coupled
with excellent performance over its three-year history continues to
support the Fund’s momentum,” said Randy I. Anderson, Ph.D., CRE,
President, Griffin Capital Asset Management Company, LLC.
Since inception, the Fund has posted positive
returns in 14 out of 14 quarters. As of December 31, 2017, the
Fund’s Class A share generated an annualized return of 7.46%, a
standard deviation of 1.95% and a Sharpe ratio of 3.62.1
“We attribute the Fund’s consistent, strong
performance to disciplined active management while adhering to our
stated objective: To deliver returns comprised of income and
appreciation with low volatility and lower correlation to the broad
markets,” Dr. Anderson continued.
Griffin Institutional Access Real Estate Fund provides
individual investors access to real estate securities that have
long been available only to institutions and ultra-wealthy
individuals. The Fund is a continuously offered investment fund
registered under the Investment Company Act of 1940 that reports a
daily net asset value (NAV) and allows for limited liquidity.
Structured as an interval fund, the Fund offers to repurchase at
least five percent of outstanding shares from investors each
quarter. Unlike traditional listed or exchange-traded closed-end
funds, shares of the Fund are bought and sold at NAV, without a
discount or premium. Investors can benefit from the Fund’s broad
diversification by fund managers, sectors and geography. The Fund
is available to investors through financial intermediaries
affiliated with many national and regional broker-dealer firms and
investment advisory firms.
Dr. Anderson concluded, “Overall, consistent
economic growth has presented a favorable environment for real
estate investing. We continue to see opportunities within both
public and private real estate with potential to deliver favorable,
risk-adjusted returns. We greatly appreciate the support of our
shareholders, as well as our broker-dealer partners, and we remain
focused on helping our investors pursue their long-term financial
goals.”
About Griffin Institutional Access Real
Estate FundGriffin 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, geography and fund manager 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 class A share
price of $25.00 and reported a share price of $26.75 for Class A,
$26.28 for Class C, $26.91 for Class I, $26.72 for Class L, and
$26.59 for Class M, as of January 17, 2018. The advisor of the
Fund is Griffin Capital Advisor, LLC, a majority-owned subsidiary
of Griffin Capital Company, LLC.
About Griffin Capital Company,
LLCGriffin Capital Company, LLC ("Griffin Capital") is a
leading alternative investment asset manager with nearly $10
billion in assets under management as of December 31, 2017. Founded
in 1995, the privately held firm is led by a seasoned team of
senior executives with more than two decades of investment and real
estate experience and who collectively have executed more than 650
transactions valued at over $22 billion.
The firm manages, sponsors or co-sponsors a
suite of carefully curated, institutional quality investment
solutions distributed by Griffin Capital Securities, LLC to
investors through a community of partners, including independent
and insurance broker-dealers, wirehouses, registered investment
advisory firms and the financial advisors who work with these
enterprises.
Additional information about Griffin Capital is
available at www.griffincapital.com.
Investors should carefully consider the investment
objectives, risks, charges and expenses of the 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 contacting your financial
advisor or
visiting www.griffincapital.com.
The prospectus should be read carefully before
investing.
Griffin Institutional Access Real Estate Fund Risk
ConsiderationsAs of December 31, 2017, the Fund’s
annualized return for one year is 6.66% and 7.46% since inception.
The Fund’s inception date was 6/30/2014. The total gross expense
ratio is 2.30% for Class A, 3.05% for Class C, 2.04% for Class I,
2.46% for Class L and 2.73% for Class M. Performance data quoted
represents past performance. Past performance is no 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. 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. The
Fund has contractually agreed to waive its fees 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, 2019.
Without the waiver, the expenses would have been higher. The Fund
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. Visit www.griffincapital.com for current performance.
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. The value of companies engaged
in the real estate industry is affected by: (i) changes in general
economic and market conditions; (ii) changes in the value of real
estate properties; (iii) risks related to local economic
conditions, overbuilding and increased competition; (iv) increases
in property taxes and operating expenses; (v) changes in zoning
laws; (vi) casualty and condemnation losses; (vii) variations in
rental income, neighborhood values or the appeal of property to
tenants; (viii) the availability of financing and (ix) changes in
interest rates and leverage.
Investors in the Fund should understand that the NAV of the Fund
will fluctuate, which may result in a loss of the principal amount
invested. The Fund provides liquidity to shareholders quarterly
between five percent and 25 percent of its outstanding shares at
net asset value.
Sources of distributions to shareholders for tax reporting
purposes will depend upon the Fund's investment experience during
the remainder of its fiscal year and may be subject to changes
based on tax regulations. Pursuant to Section 852 of the Internal
Revenue Code, the taxability of distributions will be reported on
Form 1099-DIV.
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.
S&P 500: An index based on market cap of the 500 largest
companies having stock listed on the New York Stock Exchange (NYSE)
or NASDAQ. One may not directly invest in an index.
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 three month U.S. Treasury T-Bill auction was
used as the risk free rate in this material.
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.
Griffin Institutional Access Real Estate Fund is
distributed by ALPS Distributors, Inc. ALPS Distributors, Inc. is
not affiliated with either Griffin Capital or any of its
affiliates.
1 Source: Morningstar Direct. Past performance is no
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.
Jennifer NahasVice President,
MarketingGriffin Capital
Companyjnahas@griffincapital.comOffice Phone:
949-270-9332Cell Phone: 949-433-6860
Julius Buchanan / Joseph KuoHaven Tower Group
LLC424-652-6520, ext. 114 / 424-652-6520, ext.
101jbuchanan@haventower.com or jkuo@haventower.com
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