A Share: IIMAX / C Share: IIMCX / I Share: IIMWX

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About Private Credit

The Bluerock High Income Institutional Credit Fund seeks to accomplish its objectives by investing, directly and indirectly, in private credit through managed pools of diversified Senior Secured Loans known as Collateralized Loan Obligations (CLOs).

Senior Secured Loans: Potential Portfolio Enhancement
Where do Senior Secured Loans fit in a portfolio?

Senior Secured Loans have been a resilient, multiple market cycle-tested asset class delivering both high current income and defensive characteristics, while fitting within a broadly diversified fixed income strategy.

Addressing Challenges in the Current Market

Yields on traditional income investments have been declining for over a decade. This requires individual investors to adapt their income strategy to today’s low yield environment through alternative sources.

Select Historical Index Yields1
(Current Yields as of 9.30.2023)

6.0% 4.0% 2.0% 0.0% 5.01% 2.25% 2.98% 4.92% T-Bills InvestmentGrade Bonds High YieldBonds EmergingMarket Bonds Treasuries 1.15%
Senior Secured Loans are Issued by Large, Well-Known Companies with Stable Market Demand

Senior Secured Loans typically provide financing for business needs, mergers and acquisitions related transactions or capital expenditures.

Sample Underlying Issuers2

Who are the Institutional Investors in the Senior Secured Loan Market?3

They include:

  • Institutional Asset Managers
    • CLOs
    • Loan Mutual Funds
    • Separately Managed Accounts and Comingled Funds
  • Banks
  • Insurance/Finance Companies
  • Hedge Funds
  • Pension Funds and Endowments
  • Sovereign and Private Wealth Funds
  • Family Offices
CLOs Have Delivered Attractive Yields Across Multiple Economic Cycles

WhiteStar CLOs have generated average annualized distribution yields of 16%+ across more than $10 billion of deals since 2014.

CLO Equity Average Annual Distribution Yields4
WhiteStar Issued CLOs

25% 20% 15% 10% 5% 0% CLO I CLO II CLO III CLO IV CLO V CLO VI CLO VII CLO VIII CLO IX CLO X CLO XI CLO XII CLO XIV CLO XV CLO XVI CLO XVII CLO XVIII CLO XIX CLO XX CLO XXI 15.8% 14.9% 17.1% 14.6% 11.2% 15.7% 18.0% 17.2% 20.6% 15.9% 15.4% 19.4% 12.9% 17.2% 15.9% 15.0% 17.0% 17.8% 21.6% 19.5% CLO Equity Average 14.8% WhiteStar Average 16.5%

1 Sources: finance.yahoo.com, FRED.stlouisfed.org. T-Bills: 3-month Treasury Bills; Treasuries: 10-year US Treasury Bond; Investment Grade Bonds: ICE BofA AAA US Corporate Bond Index; High Yield Bonds: ICE BofA BB US High Yield Corporate Bond Index; Emerging Market Debt: ICE BofA Emerging Markets Corporate Plus.

2  Listed above are some of the companies, and the respective percentage of the Fund’s underlying holdings, that have loans in CLOs that are included in the underlying holdings of the Fund as of 6.30.2023. These companies account for only a few of the approximate 1,613 unique issuers included in the Fund.

3 Morgan Stanley and Citi Research as of 12.31.2019

4 Source: WhiteStar Asset Management, Rankings by JPMorgan US CLO Manager Analysis June 2023.

Yield: The amount of income an investment generates. Often expressed as a percentage, yield is calculated by dividing income by market value or purchase price. It is not possible to invest in an index. You cannot invest directly in an index and unmanaged indices do not reflect fees, expenses or sale charges.