Bluerock High Income Institutional Credit Fund Announces Q3 2024 Distribution at a 14.4% Total Annualized Rate Including a 3.4% Annualized Supplemental Distribution
Bluerock High Income Institutional Credit Fund (IIMAX) announced its Q3 2024 distribution, marking the ninth consecutive quarterly regular distribution at a rate of 2.75% (11% annualized) plus a supplemental distribution of 0.85% (3.4% annualized), totaling a 14.4% annualized rate. Shareholders invested for the entire quarter will receive approximately $0.85 per share. The Fund has paid about $6.40/share in total distributions since its inception on 6.21.2022.
The Fund has diversified its portfolio, investing in more senior positions within the CLO capital structure, reducing potential risk while maintaining double-digit yield generation. It currently holds positions in 68 collateralized loan obligations representing about $25 billion in aggregate underlying loan value, with exposure to approximately 1,850 underlying senior secured loans across various industries. The Fund's net assets under management are approximately $161 million as of September 30, 2024.
Il Bluerock High Income Institutional Credit Fund (IIMAX) ha annunciato la sua distribuzione per il terzo trimestre del 2024, segnando la nona distribuzione regolare trimestrale consecutiva a un tasso del 2,75% (11% annualizzato) più una distribuzione supplementare dello 0,85% (3,4% annualizzato), per un totale di un 14,4% di tasso annualizzato. Gli azionisti investiti per l'intero trimestre riceveranno circa $0,85 per azione. Il Fondo ha pagato circa $6,40 per azione in distribuzioni totali dalla sua creazione il 21.06.2022.
Il Fondo ha diversificato il suo portafoglio, investendo in posizioni più senior all'interno della struttura di capitale CLO, riducendo il rischio potenziale pur mantenendo una generazione di rendimenti a due cifre. Attualmente detiene posizioni in 68 obbligazioni garantite da prestiti che rappresentano circa $25 miliardi di valore totale sottostante dei prestiti, con esposizione a circa 1.850 prestiti senior garantiti sottostanti in vari settori. Gli attivi netti sotto gestione del Fondo sono circa $161 milioni a partire dal 30 settembre 2024.
El Bluerock High Income Institutional Credit Fund (IIMAX) anunció su distribución del tercer trimestre de 2024, marcando la novena distribución regular trimestral consecutiva a una tasa del 2.75% (11% anualizado) más una distribución suplementaria del 0.85% (3.4% anualizado), totalizando una tasa anualizada del 14.4%. Los accionistas que han invertido durante todo el trimestre recibirán aproximadamente $0.85 por acción. El Fondo ha pagado alrededor de $6.40 por acción en distribuciones totales desde su inicio el 21.06.2022.
El Fondo ha diversificado su cartera, invirtiendo en posiciones más senior dentro de la estructura de capital CLO, reduciendo el riesgo potencial mientras mantiene una generación de rendimiento de dos dígitos. Actualmente tiene posiciones en 68 obligaciones de préstamo garantizadas que representan alrededor de $25 mil millones en valor total de préstamos subyacentes, con exposición a aproximadamente 1,850 préstamos senior garantizados subyacentes en diversas industrias. Los activos netos bajo gestión del Fondo son aproximadamente $161 millones a partir del 30 de septiembre de 2024.
블루록 하이 인컴 기관 신용 펀드(IIMAX)는 2024년 3분기 배당금을 발표했으며, 이는 아홉 번째 연속 분기 배당금으로 2.75% (연 11%)의 비율과 추가 배당금 0.85% (연 3.4%)을 합쳐 총 14.4% 연환산 비율로 나타났습니다. 전체 분기 동안 투자한 주주들은 약 $0.85의 배당금을 받을 것입니다. 이 펀드는 2022년 6월 21일 설립된 이후 총 약 $6.40 의 배당금을 지급했습니다.
펀드는 포트폴리오를 다양화하여 CLO 자본 구조 내에서 더 고위험 포지션에 투자하여 잠재적인 위험을 줄이면서 두 자릿수 수익 생성을 유지하고 있습니다. 현재 68 개의 담보 대출 채무에 대한 포지션을 보유하고 있으며, 이는 총 약 $25억 달러의 기초 대출 가치를 나타내며 다양한 산업에서 약 1,850개의 고위험 담보 대출에 대한 노출을 가지고 있습니다. 펀드의 운용 자산 총액은 2024년 9월 30일 기준으로 약 $161백만 달러입니다.
Le Bluerock High Income Institutional Credit Fund (IIMAX) a annoncé sa distribution pour le troisième trimestre 2024, marquant la neuvième distribution régulière trimestrielle consécutive à un taux de 2,75% (11% annualisé) plus une distribution complémentaire de 0,85% (3,4% annualisé), totalisant un taux annualisé de 14,4%. Les actionnaires qui ont investi pendant tout le trimestre recevront environ 0,85 $ par action. Le Fonds a versé environ 6,40 $/action en distributions totales depuis sa création le 21.06.2022.
Le Fonds a diversifié son portefeuille, en investissant dans des positions plus senior au sein de la structure de capital des CLO, réduisant ainsi le risque potentiel tout en maintenant une génération de rendement à deux chiffres. Il détient actuellement des positions dans 68 obligations de prêt garanties représentant environ 25 milliards de dollars de valeur sous-jacente totale des prêts, avec une exposition à environ 1.850 prêts garantis senior sous-jacents dans divers secteurs. Les actifs nets sous gestion du Fonds sont d'environ 161 millions de dollars au 30 septembre 2024.
Der Bluerock High Income Institutional Credit Fund (IIMAX) hat seine Ausschüttung für das dritte Quartal 2024 bekannt gegeben, was die neunte aufeinanderfolgende quartalsmäßige Regelmäßige Ausschüttung zu einem Satz von 2,75% (annualisiert 11%) plus eine zusätzliche Ausschüttung von 0,85% (annualisiert 3,4%) markiert, was insgesamt eine jährliche Rate von 14,4% ausmacht. Aktionäre, die das gesamte Quartal investiert haben, erhalten etwa $0,85 pro Aktie. Der Fonds hat seit seiner Gründung am 21.06.2022 insgesamt etwa $6,40 pro Aktie an Ausschüttungen gezahlt.
Der Fonds hat sein Portfolio diversifiziert und investiert in höherwertige Positionen innerhalb der CLO-Kapitalstruktur, was das potenzielle Risiko verringert und gleichzeitig eine zweistellige Rendite aufrechterhält. Der Fonds hält derzeit Positionen in 68 besicherten Schuldverschreibungen, die etwa $25 Milliarden des aggregierten zugrunde liegenden Darlehenswerts repräsentieren, mit einer Exponierung gegenüber etwa 1.850 zugrunde liegenden gesicherten Darlehen aus verschiedenen Branchen. Die netto verwalteten Vermögenswerte des Fonds belaufen sich auf etwa 161 Millionen Dollar zum Stand 30. September 2024.
- Nine consecutive quarterly regular distributions at 11% annualized rate
- Supplemental distribution of 3.4% annualized, bringing total to 14.4% annualized rate
- Portfolio diversification to reduce risk while maintaining double-digit yield
- Net assets under management of approximately $161 million
- One-year performance of 11.65% for Class I shares
- High total annual fund operating expense ratios (5.43% for Class A, 6.46% for Class C, 5.45% for Class I)
Insights
The Bluerock High Income Institutional Credit Fund's Q3 2024 distribution announcement is noteworthy for income-focused investors. The fund's 14.4% total annualized distribution rate, including a 3.4% supplemental distribution, stands out in the current market environment. This high yield is particularly attractive given the fund's strategic shift towards more senior positions in CLOs, potentially offering a better risk-adjusted return profile.
The fund's performance metrics are impressive, with a 11.65% one-year return and 9.11% return since inception. However, investors should note the high expense ratios, ranging from
The fund's diversification across 68 CLOs and exposure to about 1,850 underlying senior secured loans provides some risk mitigation. The floating rate nature of these investments could be advantageous in a changing interest rate environment. With
While the high distribution rate is attractive, it's important to understand the associated risks. The fund's investment in CLOs, which are complex structured products, carries inherent risks that may not be immediately apparent to retail investors. The move towards more senior positions in the CLO structure is a positive step for risk mitigation, but it doesn't eliminate all risks.
The fund's quarterly distribution policy, which includes potential return of capital, requires careful consideration. Investors should be aware that a portion of distributions may not be from net profit, potentially affecting their tax basis and future capital gains.
The low correlation to traditional fixed income securities (0.04 with bonds, 0.27 with municipals and -0.10 with treasuries) suggests potential diversification benefits. However, this also implies that the fund may not provide the same kind of stability typically associated with traditional fixed income investments.
The voluntary fee waivers by the adviser, while beneficial now, are not guaranteed to continue indefinitely, which could impact future returns.
The Fund has strategically diversified the portfolio year-to-date, investing in more senior positions within the CLO capital structure, effectively reducing potential risk while simultaneously delivering double-digit yield generation, and thus improving the risk-adjusted return profile of the Fund.
"We are excited about the High Income Fund's appeal to income investors and robust income generation, particularly in the currently changing interest rate environment," said Jeffrey Schwaber, CEO of Bluerock Capital Markets. The Fund capitalizes on the floating rate nature of senior secured loans to generate meaningful current income in changing interest rate environments and provides a low correlated investment option to other fixed income securities such as bonds, municipals, and treasuries.2
The Fund currently maintains underlying positions in 68 collateralized loan obligations representing approximately
High Income Fund I-Share Net Performance | ||
Performance Through 9.30.2024 | ||
One Year | Since Inception* | |
High Income Fund Class I | 11.65 % | 9.11 % |
Returns presented are total net return: Expressed in percentage terms, the calculation of total return is determined by taking the change in price, reinvesting, if applicable, all income and capital gains distributions during the period, and dividing by the starting price. Returns greater than one year are annualized.
* Inception date of the Fund is June 21, 2022.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month end, please call toll-free 1-844-819-8287. Past performance is no guarantee of future results.
The total annual fund operating expense ratio, gross of any fee waivers or expense reimbursements is
1 The Fund's distribution policy is to make quarterly distributions to shareholders. The level of quarterly distributions (including any return of capital) is not fixed. Effective October 1, 2024, the Fund expects to pay distributions at a floating rate reflective of the underlying investment income generated by the Fund's investments each quarter. Such distributions are accrued daily and paid quarterly. This distribution policy is subject to change. The level of quarterly distributions (including any return of capital) is not fixed and all or a portion of a distribution may consist of a return of capital. Shareholders should not assume that the source of a distribution from the Fund is net profit. The final determination of the source and tax characteristics of all distributions will be made after the end of the year. Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. There is no assurance that the Fund will continue to declare distributions or that they will continue at these rates.
2 Source: Morningstar Direct daily returns. Morningstar LSTA US Leveraged Loan Index (senior secured loans) correlation to S&P US Aggregate Bond Index (bonds), ICE BofA US Muni Index (municipals), ICE BofA US Treasury Index (treasuries) is 0.04, 0.27 and -0.10, respectively common inception through 9.30.24.
About Bluerock High Income Institutional Credit Fund
The Bluerock High Income Institutional Credit Fund (the "Fund") is a public, closed-end interval fund that provides individual investors access to a rapidly growing institutional asset class. The Fund's primary investment objective is to generate high current income, while secondarily seeking attractive, long-term risk-adjusted returns, with low correlation to the broader markets. The Fund seeks to accomplish its objectives by investing, directly and indirectly, in private credit through actively managed pools of diversified Senior Secured Loans known as Collateralized Loan Obligations (CLOs). The Fund has partnered with WhiteStar Asset Management, LLC, whose management team has overseen the issuance of
Risk Disclosures
Not FDIC Insured | No Bank Guarantee | May Lose Value
Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment, and that you may lose part or all of your investment. This is neither an offer to sell nor a solicitation to purchase any security.
Investors should carefully consider the investment objectives, risks, sales charges and expenses of the Bluerock High Income Institutional Credit Fund (the "Fund"). This and other important information about the Fund is contained in the prospectus, which can be obtained by visiting bluerock.com/hi-fund/documents. The prospectus should be read carefully before investing.
Past performance is not a guarantee of future results. The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Advisor and Sub-Advisor to allocate effectively the assets of the Fund among the various available investment opportunities. There can be no assurance that the actual allocations will be effective in achieving the Fund's investment objective or delivering positive returns. There is no guarantee that the Fund's investment strategies will work under all market conditions. Statements relating to the performance of the Fund contained herein are historical and the Fund's performance subsequent to the date as of which such statements were made may differ materially. Updated performance data for the Fund is available at bluerock.com/hi-fund/performance.
Please note that the performance data relating to various indices included herein is for informational purposes only. You cannot invest directly in an index. Index performance does not represent actual fund or portfolio performance. Performance of a fund or portfolio may differ significantly from the performance of index holding the same securities. Index performance assumes reinvestment of dividends but does not reflect any management fees, transaction costs or other expenses that would be incurred by a fund or portfolio, or brokerage commissions on transactions in fund shares. Such fees, expenses, and commissions would likely reduce returns.
The Fund is a closed-end interval fund, the shares have no history of public trading, nor is it intended that the shares will be listed on a public exchange at this time. No secondary market is expected to develop for the Fund's shares. Limited liquidity is provided to shareholders only through the Fund's quarterly repurchase offers for no less than
Investors in the Fund should understand that the net asset value ("NAV") of the Fund will fluctuate, which means the value of your shares at any point in time may be worth less than the value of your original investment, even after taking into account any reinvestment of dividends and distributions. An investment in shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably. The Fund is "non-diversified" under the Investment Company Act of 1940 and therefore may invest more than
Because the Fund invests primarily in debt-anchored instruments and securities, the value of your investment in the Fund may fluctuate with changes in interest rates. The Fund may invest in senior secured debt and CLOs. Substantial increases in interest rates may cause an increase in loan defaults and the value of the Fund's assets may also be affected by other uncertainties such as economic developments affecting the market for senior secured term loans or uncertainties affecting borrowers generally. There is a risk that the borrowers under the Senior Secured Loans may not make scheduled interest and/or principal payments on their loans and/or debt securities, which may result in losses or reduced cash flow to the Fund, either or both of which may cause the NAV of, or the distributions by, the Fund to decrease. CLOs carry additional risks, including but not limited to (i) the possibility that the Fund's investments in CLOs are subordinate to other classes or tranches thereof; and (iv) the complex structure of the CLO investment may not be fully understood at the time of investment and may produce disputes with the issuer, holders of senior tranches or other unexpected investment results. In addition, the nature of the Fund's investment strategy also subjects it to various risks, including credit risk (the debtor may default), liquidity risk (the investment may not be able to be sold at an advantageous time or price) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). All potential investors should read the Risk Factors section of the prospectus for additional information related to the risks associated with an investment in the Fund.
The Bluerock High Income Institutional Credit Fund is distributed by ALPS Distributors, Inc (ALPS). Bluerock Credit Fund Advisor, LLC is not affiliated with ALPS, or WhiteStar Asset Management. This material is provided for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product or be relied upon for any other purpose. Certain information contained herein has been obtained from sources deemed to be reliable, but has not been independently verified. This material represents views as of its date and is subject to change without notice of any kind.
For more information, contact Bluerock Capital Markets at 877.826.BLUE (2583).
Collateralized Loan Obligations (CLOs): A form of securitization where payments from multiple business loans (most typically senior secured corporate loans) are pooled together and passed on to different classes of owners in various tranches.
Correlation: This indicates the strength and direction of a linear relationship between two random variables. The value will range between -1 and 1.
Senior Secured Loans (SSLs): Debt obligations issued by corporations that are typically backed ("secured") by a company's assets. SSLs sit at the top of the company's capital structure and have the highest priority claim on the borrower's assets.
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FAQ
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