A Large Portfolio Of Actively Managed Pools Of Diversified Senior Secured Loans Accessed Through Collateralized Loan Obligations
Provides individual investors access to institutional private credit, a rapidly growing income-oriented asset class.
Actively managed and dynamic portfolios. There can be no assurance that any investment strategy will achieve its objectives, generate profits or avoid losses.
Investors should carefully consider the investment objectives, risks, sales charges and expenses of the Bluerock High Income Institutional Credit Fund (the “Fund”) before investing. This and other important information about the Fund is contained in their prospectus, which can be obtained by visiting the respective Funds websites referenced above. The prospectus should be read carefully before investing.
An investment in any share class of the Fund represents an investment in the same assets of the Fund. However, the purchase restrictions and ongoing fees and expenses for each share class are different – See “Summary of Fund Expenses” – located in the Fund’s prospectus. If an investor has hired an intermediary and is eligible to invest in more than one class of shares, the intermediary may help determine which share class is appropriate for that investor. When selecting a share class, you should consider which Share classes are available to you, how much you intend to invest, how long you expect to own shares, and the total costs and expenses associated with a particular share class. You should speak with your financial advisor to help you decide which share class is best for you.
Past performance is not necessarily indicative of future results. The ability of the Funds to achieve their investment objective depends, in part, on the ability of the Advisor, and Sub-Advisor, as applicable, to allocate effectively the Funds’ assets across the various asset classes in which they invest and to select investments in each such asset class. There can be no assurance that the actual allocations will be effective in achieving the Funds’ investment objective or delivering positive returns. There is no guarantee that the Funds’ investment strategies will work under all market conditions. Statements related to the performance of the Funds contained herein are historical and the Funds’ performance subsequent to the date as of which such statements were made may differ materially.
Investors in the Funds should understand that the net asset value (“NAV”) of the Funds will fluctuate, which means the value of your shares at any point in time may be worth less than the value of your original investment, even after taking into account any reinvestment of dividends and distributions. An investment in shares represents an indirect investment in the securities owned by the Funds. The value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably. The Funds are “non-diversified” under the Investment Company Act of 1940 and therefore may invest more than 5% of their total assets in the securities of one or more issuers. As such, changes in the financial condition or market value of a single issuer may cause a greater fluctuation in the Funds’ net asset value than in a “diversified” fund. The Funds are not intended to be a complete investment program.
BLUEROCK HIGH INCOME INSTITUTIONAL CREDIT FUND
Because the Fund invests primarily in debt-anchored 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 and Collateralized Loan Obligations (CLOs). Substantial increases in interest rates may cause an increase in loan defaults and the value of the Fund’s assets may also be affected by other uncertainties such as economic developments affecting the market for senior secured term loans or uncertainties affecting borrowers generally. There is a risk that the borrowers under the Senior Secured Loans may not make scheduled interest and/or principal payments on their loans and/or debt securities, which may result in losses or reduced cash flow to the Fund, either or both of which may cause the NAV of, or the distributions by, the Fund to decrease.
CLOs carry additional risks, including but not limited to (i) the possibility that distributions from collateral will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the possibility that the Fund’s investments in CLOs are subordinate to other classes or tranches thereof; and (iv) the complex structure of the CLO investment may not be fully understood at the time of investment and may produce disputes with the issuer, holders of senior tranches or other unexpected investment results.
Additional risks related to an investment in the Fund are set forth in the “Risk Factors” section of the prospectus, which include, but are not limited to the following: credit risk (the debtor may default), liquidity risk (the investment may not be able to be sold at an advantageous time or price) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). All potential investors should read the Risk Factors section of the prospectus for additional information related to the risks associated with an investment in the Fund.
The Bluerock High Income Institutional Credit Fund is distributed by ALPS Distributors, Inc. (ALPS). Bluerock Fund Advisor, LLC is not affiliated with ALPS.