Bluerock High Income Fund Details Q4 2024 Distribution Boost

Bluerock High Income Institutional Credit Fund Reveals Strong Performance in Q4 2024

In a noteworthy announcement, Bluerock High Income Institutional Credit Fund, also recognized as the "Fund" or the "High Income Fund" (tickers: IIMAX, IIMCX, IIMWX), has declared a robust quarterly distribution reflecting a significant annualized rate of 12.2%. Shareholders invested throughout the fourth quarter of 2024 will receive a distribution totaling around $0.72 per share, confirming the Fund's commitment to consistent performance.

The Fund has effectively diversified its investment portfolio in 2024, particularly by allocating more into senior positions within collateralized loan obligations (CLOs). This pivotal strategy not only mitigates potential risks but has also led to an impressive double-digit yield generation, enhancing the overall risk-adjusted return profile.

Exceptional Performance in 2024

During 2024, the High Income Fund achieved a remarkable total return of 13.7%, paired with a solid distribution rate of 12.2%. CEO Jeffrey Schwaber emphasized, "The High Income Fund enjoyed an extremely strong 2024, and as we navigate into 2025, we encounter exciting investment opportunities. Our focus remains on structured credit debt pools, with the anticipation of strong yields and favorable loss protection for our investors." The Fund capitalizes on senior secured loans, boasting a floating rate aspect that generates substantial income even in fluctuating interest rate environments.

Portfolio Overview

As it stands, the Fund holds positions in 93 collateralized loan obligations, indicative of approximately $30 billion in aggregate underlying loan value. This encompasses an extensive base of over 2,250 senior secured loans which span various industries, illustrating the Fund's diversification strategy.

As of December 31, 2024, the net assets under management for the High Income Fund are reported to be around $177 million. This consistent growth further affirms the Fund's robust positioning within the market.

Performance Metrics of High Income Fund I-Share

For clarity regarding returns, let's delve into the specifics:

Key Performance Indicators

Performance through the end of 2024 is marked by:

• One Year Return: 13.70%
• Return Since Inception: 10.08%

The data illustrates total net returns, derived from price changes and reinvested capital gains during the period. Notably, returns greater than one year are presented on an annualized basis.

Understanding Fund Operations and Expenses

The annual fund operating expense ratio for Class A shares stands at 3.81%, 4.61% for Class C shares, and 3.66% for the I share effective from January 1, 2025. The financial data reflects past performance, and it should be noted that actual performance may vary.

Furthermore, in an effort to maintain competitive net annual fund operating expenses while providing value to investors, the Fund's adviser has committed to lessen fee burdens until January 31, 2026. This proactive approach aims to sustain an optimal investment experience.

A Closer Look into Distribution Policies

The Fund maintains a structured approach to its distribution policy, ensuring that quarterly dividends are reflective of the underlying income generated by investments. It is important to note that these distributions, which commenced on a floating rate basis from October 1, 2024, may include returns of capital.

The Fund outlines that shareholders should not expect the source of these distributions to stem solely from profits, and the final assessment of distribution characteristics is performed at the fiscal year-end.

Risks and Considerations

Investors are advised to understand the potential risks involved with investing in the Fund. These encompass investment performance fluctuations, market conditions, and the overall economic landscape affecting borrower repayment rates.

While the investment statistics are promising, investors should remain aware that returns may not always be guaranteed and are subject to market dynamics.

About Bluerock High Income Institutional Credit Fund

The Bluerock High Income Institutional Credit Fund is designed to provide individual investors with access to a flourishing asset class that emphasizes high current income and attractive long-term risk-adjusted returns. This is achieved through diversified investments in private credit, specifically via Collateralized Loan Obligations (CLOs).

The Fund collaborates with WhiteStar Asset Management, LLC, capitalizing on their expertise in issuing and managing CLOs since 2001. Investors are informed of a minimum investment threshold of $2,500, or $1,000 for retirement plans in Class A and C shares.

Frequently Asked Questions

What is Bluerock High Income Fund's latest distribution rate?

The latest distribution rate announced for the fourth quarter of 2024 is 12.2% annualized.

How does the Fund manage risks?

The Fund strategically diversifies its portfolio and focuses on senior secured loans to minimize risks while generating stable returns.

What are the investment objectives of the Fund?

The primary objective is to generate high current income while seeking attractive risk-adjusted returns with low correlation to broader markets.

What is the minimum investment amount in the Fund?

The minimum investment amount is $2,500, or $1,000 for retirement plans, for Class A and C shares.

How does the Fund's performance compare historically?

The Fund reported a 13.7% return for the year 2024 and a 10.08% return since inception.

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Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.