A Share: IIMAX / C Share: IIMCX / I Share: IIMWX
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 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.
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 9.30.2022)
Senior Secured Loans typically provide financing for business needs, mergers and acquisitions related transactions or capital expenditures.
Sample Underlying Issuers2
They include:
Active management and structural safeguards have allowed CLOs to generate favorable distribution rates, even during periods of market disruption.
CLO Equity Annual Distribution Yields4
1 Index yields reflects the yield from the most recent quarter end date based on index pricing on that date, annualized. They reflect forward 12 month yields based on a hypothetical purchase on that date. Sources: finance.yahoo.com, FRED.stlouisfed.org, S&P Dow Jones Indices, FTSE Russell. Treasuries: 10-year US Treasury Bond; Investment Grade Bonds: ICE BofA AAA US Corporate Bond Index; Municipal Bonds: S&P Municipal Bond Investment Grade Index; High Yield Bonds: ICE BofA BB US High Yield Corporate Bond Index; Emerging Market Debt: FTSE Emerging Markets Broad Bond Index. You cannot invest directly in an index and unmanaged indices do not reflect fees, expenses or sale charges. Past Performance is not a guaranty of future performance.
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 8.31.22. These companies account for only a few of the approximate 805 unique issuers included in the Fund.
3 Morgan Stanley and Citi Research as of 12.31.2019
4 CLO Equity (or CLO equity tranche): The tranche within a CLO that is paid any excess spread. The equity tranche payment is prioritized after all the debt and subordinated tranches. Source: Kanerai, Intex, Markit, Barclays Research, includes CLO 1.0 and 2.0 broadly syndicated loans. Yields do not include return of principal. Data thru August 2022. Does not represent total return experienced by investor. Past Performance is not a guaranty of future performance.
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.
