#United States #New York #High Income Fund #Bluerock Fund #CLOs

Bluerock High Income Institutional Credit Fund Reports 11.7% Annualized Return

The Bluerock High Income Institutional Credit Fund has announced a robust 11.7% annualized distribution rate over the past year. This marks the Fund's eleventh consecutive quarterly distribution, setting a positive trajectory for investors. For the first quarter of 2025, each shareholder will receive approximately $0.53 per share for their investments, bringing the total distribution since its inception on June 21, 2022, to approximately $7.66 per share.

The Fund remains dedicated to diversifying its portfolio, focusing on superior positions within the collateralized loan obligation (CLO) capital structure. This strategic adjustment aims to mitigate risk while maximizing yield, enhancing the risk-adjusted return profile. According to Jeffrey Schwaber, CEO of Bluerock Capital Markets, the current market offers exciting opportunities in CLO debt. By targeting senior secured loans, the Fund ensures that strong yield generation is supported by payments prioritized in the capital stack, protecting against potential downturns.

In 2024, the Fund achieved a remarkable 13.7% net return for shareholders, primarily driven by its exposure to senior secured loans, which are strategically positioned in the corporate capital structure. This performance reaffirms the Fund’s commitment to delivering high income with low correlation to broader market movements, further diversifying risk.

As of March 31, 2025, the Fund oversees approximately $184 million in net assets. Its investment strategy involves underlying positions in 91 CLOs, combining to an aggregate loan value exceeding $37.7 billion. The diversification spans over 2,250 senior secured loans across a variety of industries, promoting stability and potential growth for its investors.

For investors, the High Income Fund seeks to provide substantial benefits across different market cycles. Its primary goal is to generate high current income, with a secondary focus on attractive long-term risk-adjusted returns. Interested investors can participate with a minimum investment of $2,500 for Class A and C shares or $1,000 for retirement plans.

The Fund's expenses have been notably managed, with a gross operating expense ratio of 3.81% for Class A shares, 4.61% for Class C, and 3.66% for Class I shares. Since its inception, the Fund's investment adviser has been proactive in reducing fees and absorbing expenses to maintain investor returns.

Despite the favorable outlook, it's critical for potential investors to keep in mind the associated risks, including investment volatility and fluctuating net asset values. The investment performance noted is based on historical data and does not guarantee future outcomes. Investors are encouraged to review the prospectus, which details the investment objectives, risks, and other essential information, carefully before committing.

In summary, the Bluerock High Income Institutional Credit Fund stands out with its innovative approach in capitalizing on CLOs, providing both high income and risk-adjusted returns. With its impressive track record and ongoing strategies, it positions itself as a valuable option for investors seeking access to institutional-grade assets.

For more detailed information, you can learn more about the fund's ongoing performance and distribution strategies by visiting Bluerock Capital Markets.