Bluerock High Income Institutional Credit Fund, an income-focused interval fund with a portfolio comprised of pools of diversified collateralized loan obligations, announced that it paid its ninth consecutive quarterly regular distribution at a total annualized distribution rate of approximately 14.4% for the third quarter of 2024. This distribution rate is comprised of the fund’s regular 11% annual distribution rate plus a supplemental distribution of 3.4% annualized.
The fund had previously announced this distribution rate in June.
Shareholders invested for the entire quarter will receive a total distribution amount of approximately $0.85 per share, an amount based on the average daily net asset value per share over the quarter. The fund reported that its 12 total distributions since inception on June 21, 2022, total approximately $6.40 per share.
“We are excited about the High Income Fund’s appeal to income investors and robust income generation, particularly in the currently changing interest rate environment,” said Jeffrey Schwaber, chief executive officer of Bluerock Capital Markets.
As previously reported by The DI Wire, the fund has been paying quarterly regular distributions at a rate of 2.75%, or 11% annualized, since Oct. 1, 2023.
The fund stated that its I share net performance, as of Sept. 30, 2024, was 11.65% for one year and 9.11% since inception.
Bluerock also reported that the fund has strategically diversified the portfolio year-to-date, investing in more senior positions within the CLO 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 fund also stated that it aims to capitalize 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.
The fund also said that it currently maintains underlying positions in 68 CLOs, representing approximately $25 billion in aggregate underlying loan value, with exposure to approximately 1,850 underlying senior secured loans across multiple diverse industries. Net assets under management for the fund are approximately $161 million as of Sept. 30.
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