Bluerock High Income Institutional Credit Fund Reports 13.7% 2024 Total Return
Bluerock High Income Institutional Credit Fund, an income-focused interval fund with a portfolio comprised of pools of diversified collateralized loan obligations, paid its 10th consecutive quarterly regular distribution at a rate of 3.1% or 12.2% annualized.
Shareholders invested for the entire fourth quarter 2024 will receive a total distribution amount of approximately $0.72 per share, an amount based on the average daily net asset value per share over the quarter. The fund’s 13 total distributions since its June 2022 inception total approximately $7.12 per share.
The fund has strategically diversified the portfolio in 2024, investing in more senior positions within the collateralized loan obligation capital structure, effectively reducing potential risk while simultaneously delivering double-digit yield generation, and thus improving the risk-adjusted return profile of the fund.
“The High Income Fund enjoyed an extremely strong 2024, posting a 13.7% total return and 12.2% distribution rate while growing the Fund’s I share (IIMWX) NAV $0.20 per share. Headed into 2025, we are seeing exciting investment opportunities, particularly in structured credit debt pools which we believe will deliver strong yields and favorable loss protection for our investors,” said Jeffrey Schwaber, chief executive officer of Bluerock Capital Markets.
The fund capitalizes on the floating rate nature of senior secured loans to generate meaningful current income in changing interest rate environments and provides a low correlated investment option to other fixed income securities such as bonds, municipals, and treasuries.
As previously reported by The DI Wire, the fund reduced its base management fee, effective Jan. 1, 2025, from an annual rate of 1.75% to 1.25% of the average value of the fund’s daily net assets. The base management fee is calculated and payable monthly in arrears.
As of Sept. 30, 2024, the fund maintained underlying positions in 93 CLOs representing approximately $30 billion in aggregate underlying loan value with exposure to over 2,250 underlying senior secured loans across multiple diverse industries. Net assets under management for the fund were approximately $177 million as of Dec. 31, 2024.
For more Bluerock news, click here to visit their directory page.
