ACCRE Report, September, 2021
Wow — the market was a real roller coaster in September, and continues so in October. The broader S&P 500 was down 4.76% last month, and ACCRE was also off but by only 2.19%. The S&P Real Estate index fell 4.83%, again showing the benefits from a carefully curated real estate fund rather than a blind, broad index. More telling, the S&P 500 daily returns showed a significant level of volatility in September, but ACCRE’s volatility (measured as standard deviation of daily returns) was about 25% less. Again, a well curated REIT portfolio goes a long way to attenuating volatility.
As shown above, a dollar invested in ACCRE at the inception outperformed the S&P for several years, but has underperformed in this year’s bull run. Naturally, we hope the bull market continues, but one of the principal strengths of ACCRE is to serve as a hedge in downturns. This past month was a case in point.
| S&P 500 | |
| Average Daily Excess Return | 0.0480% |
| Standard Deviation (life of fund) | 1.2540% |
| Sharpe’s Ratio | 3.8241% |
| ACCRE Fund | |
| Average Daily Excess Return | 0.0368% |
| Standard Deviation (life of fund) | 1.1824% |
| Sharpe’s Ratio | 3.1129% |
| Correlation (life of fund) | 50.2975% |
| Correlation (month of September) | 25.9817% |
As usual, if you have any questions about ACCRE or REITs in general, please don’t hesitate to reach out.
John A. Kilpatrick, Ph.D., MAI — john@greenfieldadvisors.com
From a small northwestern observatory... 
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