First, the good news — ACCRE is doing fine. We generally avoid mid-month reporting, but I’m pleased to say that ACCRE is up for the month, which unfortunately I can’t say for the market as a whole.
I’m adding a new metric to our comparisons starting this month — the S&P REIT Index. Previously, we’ve been using the FTI REIT index, which is computed monthly in conjunction with NAREIT. Hopefully, the S&P REIT Index will give us some more timely results for comparison. If so, I’ll re-hash all of our charts back to the inception with historic data. As you can see, we not only trounced the S&P this month, but also came in significantly better than the all-REIT index.
I really do hate to brag, but when the rest of the market is roiling like it is right now, investors clamor for security. A well-curated REIT portfolio fits the bill nicely. As such, the S&P closed on July 31 at 2980.38, and closed today at 2874.60, a drop of about 3.5%. ACCRE, on the other hand, is up 1.59% on the month. Indeed, every long position we have was up today, and our short position was slightly down. Go figure….
By the way, a dollar invested in ACCRE at the inception (April 1, 2017) is now worth slightly over $1.60. You’re welcome.
ACCRE was positive again in July, and (not surprisingly) turned in significantly better numbers than the S&P. Specifically, ACCRE showed a 2.16% return for the month compared to 1.31% for the S&P. (NAREIT statistics are not yet in.) Overall, a dollar invested in ACCRE at the inception would be worth $1.58 today, compared to $1.26 for that same dollar invested in the S&P.
Part of the success of ACCRE is its lack of correlation with the S&P. Overall, since the inception, ACCRE and the S&P only have a 42.2% correlation. Hence, ACCRE enjoys stability in times of volatility, and thus adds diversification to a stock portfolio. For the month of July alone, the correlation fell to 29.5%. Hence, the significant swings in the overall stock market were mostly unfelt at ACCRE.
Subscribers will receive a more in-depth snapshot later this weekend. We’ve recently added some holdings to our portfolio, and will probably re-align some holdings as August progresses. Best wishes for a great weekend!