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CIM Interval Fund Reduces Incentive Fee by 25%

CIM Interval Fund Reduces Incentive Fee by 25%. Alternative investments, American Healthcare REIT, medical office buildings, merger, MOB, NAV, real estate investment trust, REIT, Senior Housing
CIM Interval Fund Reduces Incentive Fee by 25%. Alternative investments, American Healthcare REIT, medical office buildings, merger, MOB, NAV, real estate investment trust, REIT, Senior Housing

CIM Real Assets & Credit Fund, a continuously offered closed-end interval fund, announced that its investment adviser, an affiliate of CIM Group LLC,  has agreed to a reduction in its incentive fee from 20% to 15%, effective immediately.

According to the company, the fund aims to “generate income and appreciation with lower correlation to other income alternatives.” The fund has a long-term target allocation of 70% credit (both real estate and corporate credit) and 30% direct private real assets and deploys capital based on market opportunity.

As of Oct. 31, 2023, the fund is “overweight” in floating rate real estate debt and floating rate corporate credit (81.8% of the portfolio based on fair value) given the “favorable environment to invest in floating rate credit.”

On Oct. 19, 2023, CIM Real Assets & Credit Fund’s board of directors announced a 21% increase in the fund’s distribution rate. The declared monthly cash dividends represented an annualized distribution rate of 8.5% of net asset value per share (as of the close of business on Oct. 12, 2023).

The fund will ordinarily pay distributions from its net investment income, if any, once a month; however, the amount of distributions that the fund may pay, if any, is uncertain. Based on current estimates, the Fund expects a portion of the distributions to be a return of capital.

CIM Real Assets & Credit Fund is a non-diversified, closed-end management investment company, registered under the Investment Company Act of 1940, that continuously offers its common shares and is operated as an “interval fund.” The fund invests across real assets and corporate credit, providing an opportunity to invest alongside CIM Group’s income-oriented strategies. The fund’s investment objective is to generate current income through cash distributions and preserve and protect shareholders’ capital across various market cycles, with a secondary objective of capital appreciation.

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