Griffin Institutional Access Real Estate Fund Celebrates Five-Year Anniversary
EL SEGUNDO, California (July 9, 2019) – 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.
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.”
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.
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.
1 Data 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.