NEW YORK, July 31, 2013 /PRNewswire/ -- American Realty Capital ("ARC") has launched the AR Capital Real Estate Income Fund (the "Fund") to provide investors with current income from real estate related securities and the potential for long-term capital appreciation.
According to Nicholas S. Schorsch, chairman of the Fund's board of trustees, "The AR Capital Real Estate Income Fund is a natural extension of ARC's strategy to help investors augment their portfolios to generate durable income. Historically, ARC has concentrated on funds with direct ownership and management of underlying "hard" assets. However, with this Fund, we are rounding out our offerings to investors and enabling them to generate income from a variety of real estate related securities, including bonds, preferred stock and common equity."
Mr. Schorsch noted that listed real estate securities, as represented by the FTSE/NAREIT Total Return Index, have outperformed stocks, bonds and other broad asset classes over the last 15 years. Further, he said, volatility in real estate related securities has moderated, dividend levels remain competitive, and correlations to the broader market are generally lower. The Fund is not an index fund.
As a mutual fund, the Fund offers daily pricing, daily purchases and redemptions, portfolio diversification and professional management.
The Fund is managed by National Fund Advisors, LLC ("NFA"), a wholly owned subsidiary of AR Capital, LLC. NFA is an institutional asset manager and a registered investment advisor. NFA's chief investment officer, Christopher Pike, CFA, is the portfolio manager for the Fund. Prior to his affiliation with ARC, Mr. Pike's 20 years of experience included covering real estate investment trusts as a senior analyst for Merrill Lynch, UBS and Wachovia Securities (now Wells Fargo). Previously, Chris was a member of the real estate investment banking team at Goldman Sachs Group.
Class A shares of the Fund may be found under the symbol ARIAX, and Class C shares may be found under the symbol ARICX.
Important Information About the AR Capital Real Estate Income Fund
Prospective investors should consider the investment objectives, risks, and charges and expenses of the AR Capital Real Estate Income Fund carefully before investing. The Fund's prospectus contains information about these important issued as well as other information about the Fund. A prospectus for the Fund may be obtained by calling (866) 271-9244, or writing us in care of Realty Capital Securities, LLC, 3 Copley Place, Boston, MA 02116. You may also download a copy of the Fund's prospectus by going to www.arcincomefunds.com. Please read the prospectus carefully before investing. The investment return and principal value of an investment in the Fund will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results.
About American Realty Capital
Founded in 2006, American Realty Capital, the Fund's sponsor, is a full-service investment management firm providing advisory services to retail and institutional investors. ARC is an active sponsor and manager of public and private real estate investments, a business development company and other investment products. Collectively, ARC's senior team of seasoned professionals has acquired and managed over $8 billion of real estate, as well as $5 billion of corporate sale-leasebacks and net leased properties.
SOURCE American Realty Capital