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!