Griffin Capital Company Celebrates Three-Year Anniversary for Griffin Institutional Access Real Estate Fund
EL SEGUNDO, California (June 30, 2017) – 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 third anniversary on June 30th.
With a three-year track record of positive performance and $1.7 billion in assets under management, the Fund’s strategy and objectives, as directed by the experienced Griffin Capital investment management team, have clearly found a receptive audience among investors.
“Over the past three years, we have utilized both quantitative and qualitative analysis to develop an optimal mix of private and public real estate securities to deliver on the Fund’s stated objective: Total return comprised of income and appreciation with moderate volatility and low correlation to the broad markets,” said Portfolio Manager, Randy I. Anderson, Ph.D., CRE.
From inception through May 31, 2017, the Fund has generated a total cumulative return of 23.07% and an annualized return of 7.38% with a Sharpe Ratio of 3.38—more than three times the Sharpe Ratio of the S&P 500 (0.90) over the same time period.
“We’re very proud of the performance the Griffin Institutional Access Real Estate Fund has posted over its first three years,” Dr. Anderson continued. “Amidst a macro economic backdrop that included terrorist attacks, “Brexit,” interest rate increases by the U.S. Federal Reserve and the change of presidential administrations, we posted positive returns in 12 out of 12 quarters since the Fund’s inception. Moving forward, the only certainty within the financial markets will be more uncertainty. As the markets continue to evolve, we will remain diligently focused on monitoring developments in fiscal policy reform and geo-political events, which may provide opportunities to mitigate risk and drive returns. We will continue our focus and work tirelessly to deliver strong-risk adjusted returns to our investors.”
To learn more about the Fund, visit: https://www.griffincapital.com/griffin-institutional-access-real-estate-fund
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 $26.56 for Class A, $26.20 for Class C, $26.68 for Class I, $26.55 for Class L, and $26.47 for Class M as of June 29, 2017. The advisor of the Fund is Griffin Capital Advisor, LLC, a majority owned subsidiary of Griffin Capital Company, LLC.
About Griffin Capital Company, LLC
Griffin Capital is a leading alternative investment asset manager with approximately $9 billion* in assets under management. 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 retail 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.
*As of June 30, 2017.
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 Considerations
As of 5/31/17 the Fund’s annualized return since inception for Class A shares was 7.38%. The Fund’s inception date was 6/30/14. The total gross expense ratio is 2.42% for Class A, 3.17% for Class C, 2.17% for Class I, 2.67% for Class L, and 2.92% 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, and 2.41% for Class M until February 1, 2018. The Fund has contractually agreed to waive its fees to the extent that they exceed 2.16% for Class L until May 31, 2018. Without the waiver the expenses would have been higher. The net asset value 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 5% and 25% 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 3 month U.S. Treasury Tbill auction was used as the risk free rate in this material.
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.
