CIM RACR
(I-Shares)
Rate Paid Monthly1
RACR is a closed-end interval fund that targets a portfolio of 70% credit (real estate and corporate) and 30% real asset equity,2 which seeks to provide investors:
RACR’s credit allocation seeks to generate significant income, while its real assets provide the potential for appreciation.
The fund’s real asset equity and private credit allocations may reduce volatility and correlation compared to other income alternatives.
RACR’s real estate investments may lead to partially tax deferred distributions. Since inception, 33% of distributions have been tax deferred.3
- The distribution rate is calculated as the distribution for a given month, multiplied by 12 (number of months in year) and divided by the NAV per share on 06/24/2024. Depending on when an investor purchased their shares, the annualized distribution rate may be higher or lower. Based on current estimates, the Fund expects a portion of the distributions to be a return of capital. Please refer to the Fund’s most recent Section 19(a) notice available here. There is no guarantee that investors will receive a distribution.
- Based on invested equity
- Reflects simple average starting with RACR’s first full calendar year of operation. Cash flow from real estate investments may exceed taxable income because of non-cash depreciation expense deductions. This may result in return of capital distributions for investors. Return of capital distributions are not taxed in the current year, but instead reduces an investor’s tax basis in their shares, which results in both a deferral of tax until shares are sold or redeemed and a reduction of the tax rate to the long-term capital gains rate. When shares are received through inheritance, the heir’s tax basis of the shares is “stepped up” to fair market value, so heirs are never taxed on return of capital distributions received by the investor prior to death. In addition, RACR generally invests in real estate through its REIT subsidiary; U.S. tax law permits individuals to deduct 20% of ordinary dividend income from REIT investments. Assumes dividends are reinvested.
RACR’s credit and real asset equity investments create the potential for income and capital appreciation.
Investment Growth of $10,0004,5
RACR’s private real asset allocation and private credit investments may reduce volatility and correlation compared to other income alternatives.
RACR Max Drawdown4,6
A low max drawdown is indicative of greater stability and lower risk.
RACR Correlation to Other Income Alternatives4,6
Low correlation between assets tends to result in these assets moving independently of one another, which may potentially reduce volatility while targeting better returns.
- Past performance is not a guarantee or an indicator of future results. Source: Morningstar. From 6/1/20 - 6/30/24. Based on RACR’s I share. RACR inception date is 5/4/20; Morningstar data is available only from 6/1/20.
- The Investment Growth of $10,000 chart illustrates the performance of a hypothetical $10,000 investment made in this investment product (and a benchmark, if shown) from the beginning date shown or on the inception date of the product (whichever is later). The inception date used for products with underlying funds, or multiple shares classes, or are offered as a separate account, strategy or sub account, may be the inception date of the underlying fund, the earliest share class of the product, or the date composite performance for the product was first made available. The product’s returns may not reflect all its expenses. Any fees not reflected would lower the returns. Benchmark returns include reinvestment of capital gains and dividends, if any, but do not reflect any fees or expenses. It is not possible to invest in an index. Past performance is no guarantee of future results. This chart is not intended to imply any future performance of the investment product.
- Index performance is shown for illustrative purposes only as (i) all indices referenced above are unmanaged, (ii) index performance does not reflect the expenses associated with active management of an actual portfolio, (iii) the composition of each of the indices differs significantly from that of the portfolio of the Fund and (iv) investors cannot invest directly in an index. The performance data quoted above represents past performance. Past performance does not guarantee future results. The investment return and principle value of an investment will fluctuate so that an investor’s shares, when sold or repurchased, may be worth more or less than the original cost. The performance data does not reflect the deduction of taxes that a shareholder would pay on any fund distributions or the sale of fund shares. The current performance may be lower or higher than performance data quoted.
Bloomberg Agg: Bloomberg US Agg Total Return Value Unhedged USD is a broad based, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States;
High Yield Bonds: The Bloomberg US Corporate High Yield Bond Index measures the USD-denominated, high yield, fixed rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the indices’ EM country definition, are excluded.
Floating Rate Loans: Credit Suisse Leveraged Loan Index tracks the investable market of the U.S. dollar denominated leveraged loan market. It consists of issues rated “5B” or lower, meaning that the highest rated issues included in this index are Moody’s/S&P ratings of Baa1/BB+ or Ba1/BBB+. All loans are funded term loans with a tenor of at least one year and are made by issuers domiciled in developed countries.
Investment Grade Bonds: The Markit iBoxx USD Liquid Investment Grade Index is designed to reflect the performance of USD denominated investment grade corporate debt. The index rules aim to offer a broad coverage of the USD investment grade liquid bond universe. The index is market-value weighted with an issuer cap of 3%.
Due to RACR’s real estate allocation, a portion of the fund’s 8.5% distribution may be tax deferred.
Hypothetical After-Tax Accumulated Value Based on an 8.5% Annualized Distribution Rate7
Since inception, 33% of RACR's distributions have been tax deferred.3
Assumes tax rate of 40.8% on ordinary dividends, which represents the highest federal tax rate and Medicare surtax and a tax rate of 23.8% on capital gains dividends, which represents the federal long term capital gains rate and Medicare surtax. The characterization of RACR’s dividend will vary based on portfolio construction.
For illustrative purposes only. There is no guarantee the expected growth rate can be achieved. Not intended to predict performance or demonstrate results for any product offered by CIM. Some numbers above have been rounded to the nearest whole number.
Past performance is not a guarantee or indicator of future results.
- RACR generally invests in real estate through its REIT subsidiary; U.S. tax law permits individuals to deduct 20% of ordinary dividend income from REIT investments. In addition, cash flow from real estate investments may exceed taxable income because of non-cash depreciation expense deductions. This may result in return of capital distributions for investors. Return of capital distributions are not taxed in the current year, but instead reduce an investor’s tax basis in their shares, which results in both a deferral of tax until shares are sold or redeemed and a reduction of the tax rate to the long-term capital gains rate. When shares are received through inheritance, the heir’s tax basis of the shares is “stepped up” to fair market value, so heirs are never taxed on return of capital distributions received by the investor prior to death.
Rate Paid Monthly
I Share Performance
Rate Paid Monthly
A Share Performance -No Load
A Share Performance - Load
Rate Paid Monthly
C Share Performance
Rate Paid Monthly
L Share Performance - No Load
L Share Performance - Load
CIM RACR Portfolio Composition
Total Portfolio8
Portfolio composition as of 06/30/24 and is subject to change. Senior Secured Corporate Loan Portfolio represents investment in total return swap where underlying collateral is 1st lien, senior secured floating rate corporate loans. Broadly Syndicated Loans represents senior secured loans held directly by RACR.
- Based on the net asset value divided by total fair value of the portfolio.
CIM RACR Materials
CIM RACR Documents
- 2024 Semi-Annual Report
- 2023 Annual Report
- 2023 Semi-Annual Report
- 2022 Annual Report
- 2022 Semi-Annual Report
- 2021 Annual Report
- 2021 Semi-Annual Report
- Form NPORT-P - Jun 2024
- Form NPORT EX - Dec 2023
- Form NPORT P/A - Sep 2023
- Form NPORT-P - Sep 2023
- Form NPORT-EX - Jun 2023
- Form NPORT-P - Jun 2023
- Form NPORT-P - Mar 2023
- Form NPORT-EX - Dec 2022
- Form NPORT-P - Dec 2022
- Form NPORT-P - Sep 2022
- Form NPORT-P/A - Jun 2022
- Form NPORT-P - Jun 2022
- Form NPORT-P - Mar 2022
- Form NPORT-P - Dec 2021
- Form NPORT-P - Sep 2021
SEC Filings
Visit SEC SiteInterval 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. All investing involves risk, including loss of principal. There can be no assurance that any fund will meet its objectives.
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 (“Fund”) carefully before investing. This and other information are contained in the Fund’s prospectus, which may be obtained by contacting your financial professional or visiting www.cimgroup.com. Please read the prospectus carefully before you invest.
Investing in CIM Real Assets & Credit Fund (the “Fund”) involves risks, including the risk that shareholders may receive little or no return on their investment or that shareholders may lose part or all of their investment. Below is a summary of some of the principal risks of investing in the Fund. For a more complete discussion of the risks of investing in the Fund, see “Risks” in the Fund’s prospectus. Shareholders should consider carefully the following principal risks before investing in the Fund:
- The current worldwide financial markets situation, as well as various social and political tensions in the United States and around the world (including wars and other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics), may contribute to increased market volatility, may have long term effects on the United States and worldwide financial markets, and may cause economic uncertainties or deterioration in the United States and worldwide. Any of the above factors could have a material adverse effect on the Fund’s business, financial condition, cash flows and results of operations and could cause the market value of the Common Shares to decline.
- Unlike shares of most closed-end funds, the Common Shares are not listed on any securities exchange;
- Although the Fund has a quarterly share repurchase program, there is no guarantee that an investor will be able to sell all of the Common Shares that the investor desires to sell. The Fund should therefore be considered to offer only limited liquidity;
- The capital markets may experience periods of disruption and instability. Such market conditions may materially and adversely affect debt and equity capital markets, which may have a negative impact on the Fund’s business and operations;
- If a shareholder is able to sell its Common Shares, the shareholder may receive less than its purchase price and the then current NAV per Common Share;
- The Fund’s 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’s 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;
- The Fund is exposed to the risks related to investments in real estate, including risks related to the performance of the real estate market;
- Because the Fund has significant investments in the Real Estate industry, the Fund may experience more volatility and be exposed to greater risk than it would be if it held a more diversified portfolio;
- The Fund’s investments in CMBS are subject to all of the risks of the underlying mortgage loans, including interest rate risk;
- Certain of the Fund’s real estate investments are made through its REIT Subsidiaries, which are subject to regulatory requirements to qualify as a REIT. The failure of the Fund’s REIT Subsidiaries to qualify as REITs could have a negative impact on the Fund’s investment returns;
- The Fund’s investments in second lien loans and unsecured loans are lower in priority of payment to Senior Secured Loans, they are subject to the additional risk;
- The Fund’s investments in Broadly Syndicated Loans involve a number of significant risks;
- The Fund’s investments in distressed credit investments have significant risk of loss, and the Fund’s efforts to protect its distressed credit investments may involve large costs and may not be successful;
- The Fund’s credit and credit related investments will generally be in below investment grade instruments commonly referred to as “junk” or high-yield instruments and are regarded as predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal;
- The Fund’s credit and credit-related investments are subject to risk of covenant breach, which could jeopardize the borrower’s ability to meet its obligations under the debt or equity securities that the Fund holds.
- The Fund is exposed to risks associated with changes in interest rates through its credit and credit-related investments. If interest rates fall, the Fund may not be able to generate income, and if interest rates rise, the Fund may incur more costs in connection with its use of leverage;
- To qualify and remain eligible for the special tax treatment accorded to RICs and their shareholders under the Internal Revenue Code of 1986, as amended (the “Code”), the Fund must meet certain source-of-income, asset-diversification and annual distribution requirements, and failure to do so could result in the loss of RIC status.
- Certain investments may be exposed to the credit risk of the counterparties with whom the Fund deals;
- The valuation of securities or instruments that lack a central trading place (such as fixed-income securities or instruments) may carry greater risk than those that trade on an exchange;
- The Fund has no fixed policy regarding portfolio maturity or duration. Holding long duration and long maturity investments will increase the Fund’s exposure to the credit and interest rate risks described above, including with respect to changes in interest rates through the Fund’s credit and credit-related investments as well as increased exposure to risk of loss;
- The Fund has made and may continue to make investments internationally, including in emerging markets. Therefore, the Fund has risks relating to international and emerging markets investing. Such risks include, but are not limited to, currency risks, greater volatility, less liquidity, greater custodial risks, less developed legal, tax, regulatory, financial reporting, accounting, and recordkeeping systems and greater political, social, and economic instability.
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.
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