Eagle Point Institutional Income Fund Reports 12.8% Annual Return at Midyear
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Eagle Point Institutional Income Fund, a non-traded closed-end fund managed by Eagle Point Credit Management LLC, recently exceeded $100 million of total assets, inclusive of available borrowings under a revolving credit facility.
“By leveraging the strength of our adviser’s investment platform, Eagle Point Institutional Income Fund has consistently provided investors with a reliable source of income,” said Thomas Majewski, the fund’s chairman and chief executive officer. “We believe that reaching the $100 million milestone reflects our clients’ conviction that the fund is well-positioned to continue to provide enhanced risk-adjusted returns.”
The fund generated a net total return of 12.8% over the 12-month period ending June 30, 2024. Its net asset value per share was $9.97 as of June 30, 2024, up nearly 2.8% from $9.70 a year prior.
In an August letter to shareholders, the fund emphasized that the performance of its investment portfolio during the first half of 2024 enabled it to distribute $3.1 million to investors.
The fund paid consistent monthly distributions to shareholders totaling $0.483 per share during the first half of 2024, generating a 9.7% annualized distribution rate. This represents a 5.2% increase from the $0.459 per share distributed in the second half of 2023. As previously reported by The DI Wire, the fund had increased its rate from 8.5% to 9% beginning in April.
The company purchased collateralized loan obligation equity investments in the primary and secondary markets at a weighted average effective yield of 17.9% and sustained a weighted average remaining reinvestment period of the fund’s CLO equity portfolio of 3.5 years as of June 30.
Eagle Point Institutional Income Fund is a non-traded closed-end fund registered under the Investment Company Act of 1940, which currently offers shares on a continuous basis via monthly closings. It seeks to provide investors with an attractive income stream by investing primarily in diversified pools of senior secured loans, i.e., CLOs.
As of June 30, the fund’s portfolio of 58 CLO equity investments provided exposure to nearly 1,300 different U.S. companies across more than 60 industries.
Eagle Point Credit is a specialist investment manager focused on overlooked and underserved credit markets with low to zero historical losses by investing in CLO debt, CLO equity, regulatory capital relief, portfolio debt securities (lending to credit vehicles), and strategic credit.
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