Bluerock High Income Fund Sees Strong Annualized Return
Bluerock High Income Institutional Credit Fund's Impressive Performance
The Bluerock High Income Institutional Credit Fund (the "Fund" or the "High Income Fund", tickers: IIMAX, IIMCX, IIMWX) has made a remarkable mark in performance metrics, showcasing an 11.7% annualized distribution rate over the trailing 12 months. This significant achievement demonstrates the Fund's dedication to generating substantial returns for its shareholders, continuing its trajectory of success.
Recent Quarterly Distributions and Overview
In the first quarter of the year, the Fund disbursed its eleventh consecutive quarterly distribution, amounting to roughly $0.53 per share for investors who held their shares during the quarter. Since its inception, the total distribution per share has reached approximately $7.66, reinforcing the Fund's commitment to providing consistent income to its investors.
Strategic Diversification and Portfolio Management
The Fund has made notable strides in diversifying its portfolio throughout the year, focusing on acquiring senior positions within the collateralized loan obligation (CLO) capital structure. This strategic focus not only mitigates potential risks but also enhances the yield generation potential of the Fund. By prioritizing senior secured loans, the Fund significantly improves its risk-adjusted returns.
Expert Insights from Leadership
CEO Jeffrey Schwaber emphasized the Fund's strategy by highlighting the advantageous attributes of CLO debt. He noted that these investments provide strong yield generation while ensuring priority payment structures that safeguard against potential downside risks. The Fund's objective remains clear: to produce high income, attractive total returns, while maintaining a low correlation with broader market trends. The Fund achieved a net return of 13.7% for its shareholders in the previous financial year, attributed to its focus on senior secured loans.
Robust Underlying Portfolio
As of the end of March, the Fund maintains a notable portfolio composed of 91 collateralized loan obligations, amounting to an underlying loan value of approximately $37.7 billion and substantially diversifying across over 2,250 senior secured loans across multiple sectors. The net assets under management currently stand at around $184 million, showcasing a healthy growth trajectory.
Performance Metrics and Fund Goals
For the performance period ending March 31, the High Income Fund Class I recorded a net return of 8.68% for the past year and an impressive 9.15% since its inception. This modeling of success highlights the Fund's continued ability to yield returns in various market environments.
Operating Expenses and Commitment to Long-term Growth
The Fund adheres to a comprehensive operating expense strategy, maintaining a gross expense ratio of 3.81% for Class A shares and ensuring commitments to keep net expenses as low as 2.10% for A shares until at least January 2026. Such prudent financial management is essential for shielding investors from unnecessary costs, which could otherwise impact performance.
Investment Risks: Transparency and Awareness
Investing in the Fund is not without risks. Investors need to be aware of potential volatility, the possibility of receiving low or no returns, and the risks associated with debt-backed securities, particularly in changing economic climates. The Fund’s investment returns and principal value are subject to fluctuation, emphasizing the importance of understanding the dynamics behind senior secured loans and CLOs.
About Bluerock High Income Institutional Credit Fund
The Bluerock High Income Institutional Credit Fund is a closed-end interval fund aimed at providing individual investors access to the burgeoning institutional asset class. The Fund's focused investment approach emphasizes generating high current income while also striving for attractive long-term risk-adjusted returns with minimal correlation to market fluctuations. In partnership with WhiteStar Asset Management, the Fund leverages deep market expertise, having overseen the issuance of significant CLOs, to effectively manage investments.
Frequently Asked Questions
What is the annualized distribution rate for the Fund?
The Fund has reported an annualized distribution rate of 11.7% over the trailing 12 months.
What strategies does the Fund employ for risk management?
The Fund focuses on investing in senior secured loans within the CLO capital structure, which helps mitigate risks while maximizing yield generation.
How has the Fund performed since inception?
Since its inception, the Fund has delivered total distributions of approximately $7.66 per share and achieved a net return of 13.7% for its shareholders over the previous year.
What is the minimum investment requirement?
The minimum investment is $2,500 for Class A and C shares, and $1,000 for retirement plans.
How can I contact the Fund for more information?
For more details, you can reach Bluerock Capital Markets at 877.826.BLUE (2583).
About The Author
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