DENVER--(BUSINESS WIRE)--Versus Capital Advisors LLC, an asset management firm that specializes in distinctive real estate investment funds, announced today that the Versus Capital Multi-Manager Real Estate Income Fund (“the Fund”) has reached $100 million in assets, as of September 9, 2014.
The Fund is a continuously offered closed-end interval fund, registered under the Investment Company Act of 1940. The Fund serves as a core real estate holding, providing access to institutional real estate managers and a portfolio of private real estate investment funds. As of 6/30/2014, the Gross Asset Value of the underlying real estate in the private real estate funds in which the Fund is invested is approximately $39 billion, comprised of 569 properties.
“We are extremely pleased with the performance of the Fund as we celebrate the $100 million milestone. Past performance is no guarantee of future results, but our investment strategy continues to be validated through the performance of the Fund,” said Casey Frazier, CIO of Versus Capital Advisors LLC. “As of 8/31/14, the 1 year total return of the Fund was 10.14% with standard deviation of 1.95% and a 3.38 Sharpe Ratio since inception.”
Mark Quam, CEO of Versus Capital Advisors, added, “We believe advisors are embracing the Versus Capital Multi-Manager Real Estate Income Fund for a number of reasons including; access to private real estate and institutional real estate managers, attractive distributions, low volatility, and the potential for long-term capital appreciation. We are seeing advisors sourcing capital for the Fund from public REIT and fixed income investments.”
Past Performance does not guarantee future results. The performance data quoted represents past performance and future returns may be lower or higher. Total return figures are net of all fees and expenses, and include change in share price with reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Performance data current to the most recent month-end may be obtained by calling 877-343-7916.
DEFINITIONS:
Standard deviation indicates the volatility of a fund’s total returns. In general, the higher the standard deviation, the greater the volatility of a fund’s total return. Sharpe Ratio is a risk statistic used to measure the excess return per unit of risk in an investment asset. The higher the Sharpe Ratio, the better the risk-adjusted return. Excess return is the rate of return above and beyond the risk-free rate, which is the short term treasury rate (the 3-month Treasury rate as of August 31, 2014 was used for this analysis).
Expenses
The Shares do not have an upfront or backend sales charge/load. Like all mutual funds, the Fund has ongoing operating expenses. As a consequence of its multi-manager structure, an investor in the Fund will bear not only his or her proportionate share of expenses of the Fund itself but also indirectly the expenses associated with using underlying investment funds and underlying sub-advisers.
Risks
CAREFULLY CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES BEFORE INVESTING. YOU CAN OBTAIN THE PROSPECTUS AND SUMMARY PROSPECTUS WITH THIS AND OTHER INFORMATION ABOUT THE FUND FROM THE VERSUS CAPITAL WEB SITE (versuscapital.com). READ THEM CAREFULLY BEFORE INVESTING. AN INVESTMENT IN THE FUND IS SUBJECT TO A HIGH DEGREE
The Fund does not intend to list its Shares on any securities exchange during the offering period, and a secondary market in the Shares is not expected to develop. There is no guarantee that shareholders will be able to sell all of their tendered shares during a quarterly repurchase offer. An investment is not suitable for investors that require liquidity, other through the Fund’s repurchase policy. You should not expect to be able to sell your Shares other than through the Fund’s repurchase policy, regardless of how the Fund performs.
Real estate is subject to special risks, among which are tenant default, environmental problems, and adverse changes in local economic conditions. The yield from an underlying investment fund could be significantly reduced if it fails to qualify as a REIT (real estate investment trust) for tax purposes. The Fund's investments also may be negatively affected by the broad investment environment. Although the Fund is intended to provide a means by which investors can diversify their portfolios into real estate, the Fund itself is "non-diversified" under the Investment Company Act of 1940 since changes in the market value of a single holding may cause a greater fluctuation in the Fund's net asset value than in a "diversified" fund. The Fund is not intended to be a complete investment program. Investors are reminded that portfolio diversification does not ensure a profit or guarantee against a loss
A multi-manager strategy involves certain risks. For example, the success of the Fund depends in large part upon the ability of the Adviser to choose successful Investment Managers. It is possible that some Investment Managers may take similar market positions, thereby interfering with the Fund's investment goal. The Fund and underlying Investment Managers may borrow as an investment strategy. The Fund intends to limit borrowing to one third of its gross asset value. While borrowing presents opportunities to increase the Fund's total return, it potentially increases the losses as well. Under certain circumstances, the Fund's distribution policy could result in a return of capital, potentially causing the Fund's expense ratio to increase. The Adviser, Sub-Adviser, and Investment Mangers manage portfolios for themselves and for clients other than the Fund. A conflict between the interests of the Fund and the interests of these other parties may arise in certain situations which potentially could disadvantage the Fund. For example, a suitable but limited investment opportunity might be allocated to another client rather than to the Fund.
