LOS ANGELES—Griffin Capital Corp.'s Griffin Institutional Access Real Estate Fund has exceeded $200 million in assets under management. The fund originally launched in June 2014 and is seeing accelerated growth. Portfolio manager Dr. Randy I. Anderson attributed this success to the fund's strategy, which garners a return of “both current income and capital appreciation” with limited volatility. As of June this year, the fund has produced 8.04% return to its investors. To find out more about why this fund has seen accelerated growth, how the strategy plays an important role and how the fund is expected to continue to perform, we sat down with Anderson for a brief interview. Here is his inside scoop on the fund.
GlobeSt.com: What is driving this increase?
Dr. Randy I. Anderson: Griffin Institutional Access Real Estate Fund (“GIREX” or “the Fund”) has been able to gather assets quickly as investors recognize the benefits of our strategy as an integral real estate solution within a mixed asset portfolio. Our success has been driven by an increased appreciation and understanding of our strategy, which provides investors a return comprised of both current income and capital appreciation while exhibiting moderate volatility and low correlation to the broader markets. In times of increased market uncertainty these are highly sought after characteristics.
GlobeSt.com: You mentioned that this growth is the result of your strategy. What is the fund's strategy, and how does it differ from that of your competitors?
Dr. Randy I. Anderson: GIREX provides access to an actively managed portfolio of both private and publicly traded real estate securities. On the private side, we partner with Aon Hewitt Investment Consulting to select best-in-class real estate private equity securities. Without a strategy like GIREX, most individuals would be unable to access these funds due to the large minimum investment requirements, many times in the $5M to $10M range for a single position. Additionally, CenterSquare Investment Management executes the public security strategy for GIREX. CenterSquare is a highly regarded institutional manager with decades of investing experience. In all, a GIREX investor is able to access, in a single investment, an actively managed portfolio of institutional private securities diversified by manager, property type and geography as well as a diversified portfolio of publicly traded real estate securities. This is a research-based investment strategy that has been shown to produce strong risk adjusted returns across market cycles.
GlobeSt.com: What is your forecast for the future of the fund? Do you expect to continue to see strong growth?
Dr. Randy I. Anderson: We expect to see an increased adoption rate of the GIREX strategy. We are continuing to disseminate the GIREX strategy with independent financial advisors and RIAs, all of whom we believe appreciate the returns we have generated thus far amidst turbulent market conditions. Moving forward, we expect real estate to perform well as property fundamentals continue to improve. Further, real estate investments tend to perform well in rising rate environments and can serve as a measure of protection against inflation. As a result of current market conditions, we are seeing many investors move a portion of their fixed income allocation over to GIREX due to the attractive yield and appreciation component of the Fund.
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