Bluerock High Income Institutional Credit Fund, an income-focused interval fund with a portfolio comprised of pools of diversified collateralized loan obligations, announced the increase of its regular quarterly distribution rate from 2.00% to 2.75%, or an 11.0% annualized rate, effective October 1, 2023. The rate will be based on the average daily net asset value per share over the quarter. The fund also reported it has exceeded more than $100 million of new investor equity.
The fund recently paid its fifth consecutive quarterly distribution at a 2.0% rate, based on the average daily NAV of $23.94 in the trailing third quarter, which represents the fund’s seventh total distribution since its inception in June 2022, including two special distributions to shareholders. Shareholders invested for the entire quarter will receive a total distribution amount equal to $0.48 per share.
“Bluerock’s mission has always been to seek asymmetric return/risk investments in favor of investors and to invest in asset classes with notable long-term tailwinds. We believe the High Income Fund is capitalizing on both, with a highly institutional portfolio buildout that includes underlying exposure to over $9 billion of senior secured loans, which typically have the highest position in corporate capital stacks, generating significant income to the Fund,” said Jeffrey Schwaber, chief executive officer of Bluerock Capital Markets. “The Fund capitalizes on the floating rate nature of senior secured loans to generate income growth in a rising rate environment, while also insulating investors from potential losses traditional fixed income investments may experience when rates rise. The Fund unlocks the benefits of these loans through collateralized loan obligations which have historically generated attractive returns across multiple market cycles.”
Bluerock High Income Institutional Credit Fund currently maintains underlying positions in 26 collateralized loan obligations representing approximately $9 billion of loans with exposure to approximately 1,950 underlying senior secured loans in multiple industries, as of June 30, 2023. Net assets under management for the fund represent more than $100 million as of Sept. 29, 2023.