{"id":366172,"date":"2023-12-05T13:56:19","date_gmt":"2023-12-05T18:56:19","guid":{"rendered":"https:\/\/qa.bluevaultpartners.com\/?p=366172"},"modified":"2023-12-05T22:32:35","modified_gmt":"2023-12-06T03:32:35","slug":"cim-real-assets-credit-fund-announces-significant-reduction-in-incentive-fee","status":"publish","type":"post","link":"https:\/\/qa.bluevaultpartners.com\/cim-real-assets-credit-fund-announces-significant-reduction-in-incentive-fee\/","title":{"rendered":"CIM Real Assets & Credit Fund Announces Significant Reduction in Incentive Fee"},"content":{"rendered":"
\n

Business Wire<\/em><\/a><\/p>\n

CIM Real Assets & Credit Fund (\u201cCIM RACR\u201d or the \u201cFund\u201d) announced today that its investment adviser has agreed to a reduction in its incentive fee to 15% (from 20%), effective immediately.<\/p>\n

CIM RACR (Ticker: IRACX) aims to generate income and appreciation with lower correlation to other income alternatives. The Fund has a long-term target allocation of 70% credit (both real estate and corporate credit) and 30% direct private real assets and deploys capital based on market opportunity. As of October 31, 2023, the fund is overweight in floating rate real estate debt and floating rate corporate credit (81.8% of the portfolio based on fair value) given the favorable environment to invest in floating rate credit.<\/p>\n

Recent Distribution Increase<\/b><\/p>\n

On October 19, 2023, CIM RACR\u2019s Board of Directors announced a 21% increase in the distribution rate. The declared monthly cash dividends represented an annualized distribution rate of 8.5% of net asset value per share (as of the close of business on October 12, 2023). In addition, a portion of CIM RACR\u2019s distribution may be tax deferred whereas income from bonds and credit funds are typically 100% ordinary income and taxed at the highest rate.<\/p>\n

The increase in the distribution rate reflects increasing income on CIM RACR\u2019s floating rate real estate and credit investments and the expectation of improving net operating income on its real estate equity investments from recent strong leasing activity.<\/p>\n

CCO Capital, LLC, Member FINRA\/SIPC, is the exclusive wholesale marketing agent for CIM Real Assets & Credit Fund. Northern Lights Distributors, LLC (4221 North 203rd Street, Suite 100, Elkhorn, NE 68022, Member FINRA) is the distributor of CIM Real Assets & Credit Fund. CCO Capital and Northern Lights Distributors, LLC are not affiliated.<\/p>\n

The Fund will ordinarily pay distributions from its net investment income, if any, once a month; however, the amount of distributions that the Fund may pay, if any, is uncertain. Based on current estimates, the Fund expects a portion of the distributions to be a return of capital. Please refer to the Fund\u2019s most recent section 19(a) notice, available at\u00a0www.cimgroup.com<\/a>. There is no guarantee that investors will receive a distribution and the distribution rate should not be confused with yield or performance.<\/p>\n

 <\/p>\n

Important Disclosure<\/b><\/span><\/p>\n

This is neither an offer to sell nor a solicitation to purchase any security. Investors should consider the investment objectives, risks, charges and expenses of the CIM Real Assets & Credit Fund (the \u201cFund\u201d or \u201cCIM RACR\u201d) carefully before investing. This and other information are contained in the Fund\u2019s prospectus, which may be obtained by contacting your financial professional or visiting\u00a0www.cimgroup.com<\/a>. Please read the prospectus carefully before you invest.<\/b><\/span><\/p>\n

All investing includes risk including the loss of principal. Interval funds are generally suitable only for investors who can bear the risks associated with the limited liquidity of the fund and should be viewed as a long-term investment. There can be no assurance that any fund will meet its objectives.<\/span><\/p>\n

The Fund\u2019s distributions may be funded from offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to the Fund for investment. Although a return of capital will generally not be taxable to a shareholder, it would reduce the shareholder\u2019s cost basis in the Common Shares and may result in higher capital gains taxes, or a lower capital loss, when Common Shares are sold. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses, as well as the sales load.<\/span><\/p>\n

About CIM Real Assets & Credit Fund<\/b><\/span><\/a><\/p>\n

CIM RACR is a non-diversified, closed-end management investment company, registered under the Investment Company Act of 1940, as amended, that continuously offers its common shares and is operated as an \u201cinterval fund.\u201d The Fund invests across real assets and corporate credit, providing an opportunity to invest alongside CIM Group\u2019s income-oriented strategies. CIM RACR\u2019s investment objective is to generate current income through cash distributions and preserve and protect shareholders\u2019 capital across various market cycles, with a secondary objective of capital appreciation. The Fund is advised by CIM Capital IC Management, LLC and sub-advised by CIM Capital SA Management, LLC and OFS Capital Management, LLC, each of which is an investment adviser registered under the Investment Advisers Act of 1940, as amended, and affiliates of CIM Group, LLC. For additional information, please visit\u00a0www.cimgroup.com<\/a>.<\/span><\/p>\n

Forward-Looking Statements<\/b><\/span><\/p>\n

Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating management\u2019s belief that CIM RACR will benefit from CIM Group\u2019s combined real assets, credit and transaction experience and deal-sourcing capabilities; the composition of CIM RACR\u2019s portfolio of real assets and corporate credit assets and the potential benefits to investors, which may not be realized; opportunities for individuals to invest alongside institutional partners, and whether those opportunities will align the interests among sponsors, partners and shareholders; and other factors may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws. Forward-looking statements can be identified by terminology such as \u201canticipate,\u201d \u201cbelieve,\u201d \u201ccould,\u201d \u201ccould increase the likelihood,\u201d \u201cestimate,\u201d \u201cexpect,\u201d \u201cintend,\u201d \u201cis planned,\u201d \u201cmay,\u201d \u201cshould,\u201d \u201cwill,\u201d \u201cwill enable,\u201d \u201cwould be expected,\u201d \u201clook forward,\u201d \u201cmay provide,\u201d \u201cwould\u201d or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in CIM RACR\u2019s Prospectus filed with the Securities and Exchange Commission (the \u201cSEC\u201d) on, June 23, 2023 under the section \u201cRisks\u201d, as well as other documents that may be filed by CIM RACR from time to time with the SEC. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. CIM RACR is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.<\/span><\/p>\n

Contacts<\/strong><\/p>\n<\/div>\n

\n

Media Relations<\/b><\/span>
\nKaren Diehl<\/span>
\nDiehl Communications<\/span>
\n310-741-9097<\/span>
\nkaren@diehlcommunications.com<\/a><\/span><\/p>\n

CIM Shareholder Relations<\/b><\/span>
\nshareholderrelations@cimgroup.com<\/a><\/span>
\n(866) 907-2653<\/span><\/p>\n<\/div>\n

<\/div>","protected":false},"excerpt":{"rendered":"

The increase in the distribution rate reflects increasing income on CIM RACR\u2019s floating rate real estate and credit investments and the expectation of improving net operating income on its real estate equity investments from recent strong leasing activity.<\/p>\n","protected":false},"author":3681,"featured_media":366182,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3010,2714,2738],"tags":[],"class_list":["post-366172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asset-manager-news","category-cim-group","category-interval-fund"],"acf":[],"yoast_head":"\nCIM Real Assets & Credit Fund Announces Significant Reduction in Incentive Fee - Blue Vault<\/title>\n<meta name=\"description\" content=\"The increase in the distribution rate reflects increasing income on CIM RACR\u2019s floating rate real estate and credit investments...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/qa.bluevaultpartners.com\/cim-real-assets-credit-fund-announces-significant-reduction-in-incentive-fee\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CIM Real Assets & Credit Fund Announces Significant Reduction in Incentive Fee - 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