NEW YORK, September 30, 2022 /PRNewswire/ — Bluerock High Income Institutional Credit Fund (“HI Credit”, “Fund” symbols: IIMAX, IIMCX, IIMWX) paid its inaugural distribution on September 30, 2022. This distribution amount represents an annualized rate of 8.00%* based on the daily net asset value for the past quarter. Shareholders invested throughout the quarter received a distribution of 2.00%, or approximately $0.50 per share. (I-shares)
“We are delighted that the Fund has paid its initial distribution, providing shareholders with income through a diversified and highly institutional portfolio of secured loan obligations. The Fund has been designed to provide attractive performance in the current economic environment. high inflation and rising interest rates by generating substantial revenue while stabilizing and growing NAV.” said jeffrey schwaberCEO of Bluerock Capital Markets.
HI Credit’s net assets under management are approximately $85 million of the September 30, 2022. The Fund is invested in multiple senior secured loan obligations which provide exposure to approximately $5.2 billion in value through over 3,610 underlying senior secured loans across multiple sectors (participations are subject to change at any time and should not be considered investment advice).
About the Bluerock Institutional High Income Credit Fund
The Bluerock High Income Institutional Credit Fund (the “Fund”) is a public open-end, closed-end fund that provides individual investors with access to a rapidly growing institutional asset class. The primary investment objective of the Fund is to generate high current income, while secondarily seeking attractive long-term risk-adjusted returns with low correlation to broader markets. The Fund seeks to achieve its objectives by investing, directly and indirectly, in private credit through actively managed pools of diversified senior secured loans known as secured loan obligations (CLOs). The Fund partnered with WhiteStar Asset Management, LLC, whose management team oversaw the issuance of $40 billion in CLOs since 2001, to serve as the Fund’s sub-advisor. An investment in the Fund aims to provide investors with the following potential benefits over various market cycles. The minimum investment in the Fund is $2,500 ($1,000 for pension plans) for Class A and Class C shares.
* The Fund’s distribution policy is to make quarterly distributions to shareholders. The level of quarterly distributions (including any return of capital) is not fixed, but is expected to represent an annual rate of approximately 8.0% of the Fund’s current net asset value per share. These distributions are accrued daily and paid quarterly and this distribution policy is subject to change. Shareholders receiving periodic payments from the Fund may feel that they are receiving net profits. However, all or part of a distribution may consist of a return of capital. Shareholders should not assume that the source of a distribution from the Fund is net profit. A return of capital is not taxable to a shareholder unless it exceeds a shareholder’s tax base in the shares. Returns of capital reduce a shareholder’s tax cost (or “tax base”). Once a shareholder’s tax base is reduced to zero, any further returns of capital would be taxable. Shareholders should note that the return of capital will reduce the tax base of their shares and potentially increase the taxable gain, if any, on the disposition of their shares.
Not FDIC Insured | No bank guarantee | May lose value
Investing in the Fund involves risks, including the risk that you will receive little or no return on your investment and that you may lose some or all of your investment. This is neither an offer to sell nor a solicitation to buy securities.
Investors should carefully consider the investment objectives, risks, sales charges and expenses of the Bluerock High Income Institutional Credit Fund (the “Fund”). This and other important information about the Fund is contained in the prospectus, which can be obtained by visiting bluerock. com/hi-fund/documents. The prospectus should be read carefully before investing.
Past performance is not indicative of future results. The Fund’s ability to achieve its investment objective depends, in part, on the ability of the Advisor and Sub-Advisor to effectively allocate the Fund’s assets among the various investment opportunities available. There can be no assurance that the actual allocations will be effective in achieving the Fund’s investment objective or generating positive returns. There can be no assurance that the Fund’s investment strategies will work in all market conditions. The statements relating to the performance of the Fund contained herein are historical and the performance of the Fund after the date on which such statements were made may differ materially. Updated Fund performance data is available at bluerock.com/hi-fund/performance.
Please note that the performance data relating to the various indices included here is provided for informational purposes only. You cannot invest directly in an index. The performance of the index does not represent the actual performance of the fund or the portfolio. The performance of a fund or portfolio may differ significantly from the performance of an index holding the same securities. Index performance assumes the reinvestment of dividends but does not reflect any management fees, transaction costs or other expenses that would be incurred by a fund or portfolio, or brokerage commissions on transactions in the shares of the fund. These fees, expenses and commissions would likely reduce returns.
The Fund is an open-ended fund, the shares have no public trading history, and the shares are not expected to be listed on a public stock exchange at this time. No secondary market is expected to develop for the shares of the Fund. Limited liquidity is provided to shareholders only through the Fund’s quarterly redemption offers for at least 5% of the Fund’s shares outstanding at net asset value. There is no guarantee that shareholders will be able to sell all the shares they want under a quarterly buyout offer. Quarterly redemptions by the Fund of its shares will generally be financed from available cash or sales of portfolio securities. The sale of securities to fund redemptions could reduce the market price of such securities, which in turn would reduce the net asset value of the Fund. The Fund is only suitable for investors who can bear the risks associated with the Fund’s limited liquidity and should be viewed as a long-term investment.
Investors in the Fund should understand that the net asset value (“NAV”) of the Fund will fluctuate, which means that the value of your shares at any time may be worth less than the value of your original investment, even after taking into account any reinvestment of dividends and distributions. An equity investment represents an indirect investment in the securities held by the Fund. The value of these securities, like other market investments, can go up or down, sometimes quickly and unpredictably. The Fund is “undiversified” within the meaning of the Investment Company Act of 1940 and may therefore invest more than 5% of its total assets in the securities of one or more issuers. Thus, changes in the financial situation or the market value of the same issuer may lead to greater fluctuations in the Fund’s net asset value than in a “diversified” fund. The Fund is not intended to be a complete investment program.
Since the Fund invests primarily in debt-backed instruments and securities, the value of your investment in the Fund may fluctuate with changes in interest rates. The Fund may invest in senior secured debt securities and CLOs. Substantial increases in interest rates may result in increased defaults and the value of the Fund’s assets may also be affected by other uncertainties such as economic developments affecting the senior secured term loan market or uncertainties affecting borrowers in general. There is a risk that borrowers under Senior Secured Loans may not be able to make scheduled interest and/or principal payments on their loans and/or debt securities, which may result in losses or reduced cash flows of cash for the Fund, either or both of which may result in a decrease in the Fund’s net asset value or distributions. CLOs involve additional risks, including but not limited to (i) the possibility that the Fund’s investments in CLOs may be subordinated to other classes or tranches thereof; and (iv) the complex structure of investing in the CLO may not be fully understood at the time of investment and may result in disputes with the issuer, senior tranche holders or other unexpected investment results. . In addition, the nature of the Fund’s investment strategy also exposes it to various risks, including credit risk (the debtor may default), liquidity risk (the investment may not be able to be sold or at an advantageous price) and prepayment risk (the debtor can prepay his obligation, which reduces the amount of interest payments). All potential investors are advised to read the Risk Factors section of the prospectus for additional information on the risks associated with investing in the Fund.
The Bluerock High Income Institutional Credit Fund is distributed by ALPS Distributors, Inc (ALPS). Bluerock Credit Fund Advisor, LLC is not affiliated with ALPS or WhiteStar Asset Management. This material is provided for informational purposes only and should not be considered investment advice or a recommendation of any particular security, strategy or investment product, or relied upon for any other purpose. Certain information contained herein has been obtained from sources believed to be reliable, but has not been independently verified. This material represents views as of its date and is subject to change without notice of any kind.
Secured Loan Obligations (CLO): A form of securitization where payments from multiple business loans (most often senior secured business loans) are pooled together and passed on to different classes of owners in different tranches.
Correlation: It indicates the strength and direction of a linear relationship between two random variables. The value will be between -1 and 1.
Senior Secured Loans (SSL): Debt securities issued by companies that are generally backed (“secured”) by the assets of a company. SSLs sit at the top of the company’s capital structure and have the highest priority over the borrower’s assets.
SOURCE Bluerock Institutional High Income Credit Fund