Bluerock High Income Fund Celebrates Three Years with Strong Returns
Bluerock High Income Fund Achieves Milestones in Performance
Bluerock High Income Institutional Credit Fund, also known as the High Income Fund, recently marked its twelfth consecutive quarterly distribution, showcasing an impressive annualized distribution rate of 11.3% over the past year. Investors who held shares throughout the quarter are set to enjoy a distribution of approximately $0.55 per share. Since launching, the Fund has disbursed roughly $8.18 per share in total distributions, reflecting its commitment to generating income for its shareholders.
Strategic Positioning in CLOs for Consistent Returns
The Fund has made significant strides by focusing on senior collateralized loan obligation (CLO) debt securities, which provide opportunities for high income alongside robust risk management practices. In maintaining a strategically conservative stance by investing in predominantly senior CLO tranches, the Fund aims to offer reliable, risk-adjusted returns no matter the market conditions.
Leadership Insights on Performance
Jeffrey Schwaber, CEO of Bluerock Capital Markets, expressed confidence in the Fund's trajectory, stating, "Crossing our three-year milestone with strong risk-adjusted performance illustrates our ongoing commitment to income generation and protecting shareholder investments. Through disciplined asset allocation and proactive risk assessment, we have successfully navigated a challenging market landscape. Entering our fourth year, our focus remains on delivering stable monthly income and sustained value to our investors."
Current Financial Overview
The High Income Fund currently holds investments in 122 CLOs, reflecting an aggregate underlying loan value of around $37.7 billion. These assets are diversified across over 2,250 senior secured loans sourced from various industries. As of the latest reporting period ending June 30, 2025, the Fund's net assets under management stand at approximately $190 million.
Performance Metrics as of June 30, 2025
The Fund's performance data is reflective of its strategic focus. For the one-year period, the High Income Fund Class I has achieved a return of 8.92% while since its inception, the total return stands at 9.19%. These returns illustrate the effectiveness of the Fund's investment strategy and risk management efforts.
Understanding Fund Expenses and Management
Investors should be aware that the Fund's total annual operating expense ratio, not accounting for any fee waivers or reimbursements, is set at 3.81% for Class A shares, 4.61% for Class C shares, and 3.66% for Class I shares. It's important to recognize that the Fund's adviser has voluntarily absorbed certain expenses to keep net annual costs for investors low, ensuring the Fund remains competitive and attractive.
Investment Risks and Considerations
While the Fund aims to provide stable income and long-term growth, potential investors ought to be mindful of the inherent risks involved. The value of investments can fluctuate due to various factors including interest rate changes and market conditions, which may affect the returns and principal that shareholders receive. It's critical that investors assess their risk tolerance and investment objectives before participating in the Fund.
Frequently Asked Questions
What is the primary objective of the Bluerock High Income Fund?
The primary aim of the Fund is to generate high current income while seeking attractive long-term risk-adjusted returns.
How has the Fund performed over its inaugural year?
In its first year, the Fund delivered a return of 8.92%, reflecting strong management and strategic allocations.
What types of securities doesn't the Fund primarily invest in?
The Fund primarily invests in senior secured loans and collateralized loan obligations (CLOs) to capitalizes on high-income opportunities.
What are the risks associated with investing in this Fund?
Investing in the Fund involves risks such as market fluctuations, interest rate changes, and potential loss of principal.
How can I get more information about the Fund?
Investors can contact Bluerock Capital Markets directly for more details at 877.826.BLUE (2583).
About The Author
Contact Caleb Price privately here. Or send an email with ATTN: Caleb Price as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
