Continuing to Prioritize CLO Debt, Bluerock Fund Pays 11th Consecutive Distribution
Bluerock High Income Institutional Credit Fund, an income-focused interval fund with a portfolio comprised of pools of diversified collateralized loan obligations, or CLOs, announced that for the first quarter of 2025, it paid its 11th consecutive quarterly distribution. With it, the fund had an 11.7% annualized rate over the trailing 12 months.
According to the fund, its quarterly distribution amounts are not fixed and vary based on the performance of the fund’s holdings. Shareholders invested for the entire quarter will receive a total distribution amount of approximately $0.53 per share. The fund’s 14 total distributions since inception in June 2022 total approximately $7.66 per share.
The fund has continued to strategically diversify its portfolio in 2025 – according to Bluerock’s leadership – investing in more senior positions within the CLO capital structure and effectively reducing potential risk while delivering compelling yield generation and strengthening the risk-adjusted return profile of the fund.
“The fund is identifying compelling opportunities in CLO debt, where strong yield generation is supported by payment of priority in the capital stack providing downside protection,” said Jeffrey Schwaber, chief executive officer of Bluerock Capital Markets. “The fund continues to deliver on its investment objectives of generating high income, attractive total returns, and maintaining low correlation to broader markets as evidenced by the 13.7% net return to the fund’s shareholders in 2024.”
“[This is] driven by the fund’s underlying exposure to senior secured loans, which are the most senior position in corporate capital structures,” added Schwaber.
The company’s 10th consecutive quarterly regular distribution had been at a rate of 3.1% or 12.2% annualized.
The fund currently maintains underlying positions in 91 CLOs representing approximately $37.7 billion in aggregate underlying loan value with exposure to over 2,250 underlying senior secured loans across multiple diverse industries (underlying holdings as of Dec. 31, 2024).
Net assets under management for the fund were approximately $184 million as of March 31, 2025.
As previously reported by AltsWire, the fund reduced its base management fee, effective Jan. 1, 2025, from an annual rate of 1.75% to 1.25% of the average value of the fund’s daily net assets. The base management fee is calculated and payable monthly in arrears.
The Bluerock High Income Institutional Credit Fund’s primary investment objective is to generate high current income, while secondarily seeking attractive, long-term risk-adjusted returns, with low correlation to the broader markets.
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