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Bluerock High Income Institutional Credit Fund Celebrates 3 Years of Strong Performance

Bluerock, a prominent player in the institutional alternative asset management sector, commemorates a significant achievement as the Bluerock High Income Institutional Credit Fund, often referred to as the HI Fund, marks its three-year operational anniversary. This milestone is a vital indicator in assessing mutual fund success, engaging in due diligence, and executing peer comparisons with Morningstar ratings and other benchmarks.

A Growing Force in Alternative Credit

Since its inception on June 21, 2022, the HI Fund has positioned itself as an influential entity within the alternative credit landscape. The Fund’s success is largely attributed to three distinct strengths. Firstly, it has consistently delivered attractive yields, achieving notable positive total returns each year. Secondly, it offers a unique exposure to a variety of alternative credits, specifically larger, broadly syndicated senior loans. Lastly, the Fund demonstrates a low correlation to broader market fluctuations, thereby providing added security to its investors during times of volatility.

Jeffrey Schwaber, CEO of Bluerock Capital Markets, stated, "Our focus on strong credit opportunities has allowed the Fund to generate double-digit yields consistently, making it a standout in today’s competitive market landscape." He emphasized the commitment to maximizing risk-adjusted returns while adhering to a prudent risk profile.

Deep Research and Opportunity

Ongoing fundamental research serves as the backbone of the HI Fund’s strategy. By analyzing the Fund's underlying loans thoroughly, Bluerock actively seeks investments that promise robust cash flows, principal appreciation potential, and resilience, particularly in challenging market conditions. This rigorous approach aligns the interests of the management with those of the investors, cultivating a mutually beneficial relationship aimed at shared success.

Miguel Sosa, the Client Portfolio Manager, highlighted the significance of the HI Fund's low correlation with broader markets, noting that this aspect allows for improved diversification and income generation for investor portfolios, especially amidst increased market volatility.

Looking Ahead

As the HI Fund embarks on its fourth year, the management team's commitment remains unwavering in identifying attractive investment opportunities and enhancing value for investors. Portfolio managers are dedicated to maintaining their high standards in alternative credit investment while leveraging the expertise of Clearlake Credit to adeptly maneuver through the evolving credit environment.

Performance Metrics

The Fund has shown impressive performance metrics, including returns of 8.68% and 9.15% for the one year and since inception periods to March 31, 2025, respectively. This performance showcases the effective strategy and innovative approach adopted by the fund managers. However, it is essential to note that past performance does not guarantee future results, as market conditions can change.

The HI Fund maintains a total annual fund operating expense ratio of 3.81% for Class A shares, 4.61% for Class C shares, and 3.66% for Class I shares, effective January 1, 2025. Additionally, the Fund’s distribution policy entails quarterly distributions to shareholders, reflecting the performance of its underlying holdings while offering a potential income stream for investors.

About the Bluerock High Income Institutional Credit Fund

The Bluerock High Income Institutional Credit Fund is categorized as a public, closed-end interval fund, providing individual investors access to a rapidly evolving institutional asset class. Its primary objective is to generate high current income and seek favorable long-term risk-adjusted returns with low correlation to the broader market.

The Fund notably invests in private credit through carefully managed pools of diversified Senior Secured Loans, known as Collateralized Loan Obligations (CLOs). Collaborating with WhiteStar Asset Management, whose management team has overseen significant CLO issuances, further solidifies the Fund's commitment to delivering value.

Investors considering participation in the HI Fund should acknowledge that investing involves risks, including potential loss of principal and varying returns based on underlying investments' performance. The minimum investment for participating in the fund is set at $2,500, which can be reduced to $1,000 for retirement plans. As the financial landscape evolves, the Bluerock High Income Institutional Credit Fund stands prepared to adapt and pursue innovative investment strategies to continue thriving in the alternative credit space.