KKR Credit Income Fund Delivers 9.91% Yield with April Distribution

About KKR Credit Income Fund

KKR Credit Income Fund (ASX: KKC) is a listed investment trust managed by global investment firm KKR. The fund primarily targets senior secured floating-rate credit instruments, including broadly syndicated loans and private credit, with an emphasis on capital preservation and monthly income. KKC provides Australian investors with exposure to the deep and diverse U.S. leveraged loan market, while leveraging KKR’s credit expertise and global scale. The fund trades on the ASX and aims to offer stable distributions through varying rate cycles.

Distribution Stability and Yield Focus

KKR Credit Income Fund has declared a monthly distribution of $0.0167 per unit for April 2025, continuing its track record of consistent monthly income to unitholders. The distribution will be paid on 14 May 2025, with the ex-dividend date on 29 April and the record date set for 30 April. This payout reflects the fund’s ongoing strategy to maintain regular distributions backed by a portfolio of high-quality floating-rate credit assets.

With an annualised dividend yield of 9.91%, KKC remains one of the higher-yielding fixed-income options available to Australian investors. The fund is designed to perform well in higher-rate environments, as the floating-rate nature of its underlying loans provides a hedge against rising interest costs. In an environment of ongoing rate uncertainty, KKC offers a stable and defensive income stream that has continued to attract yield-seeking investors.

The distribution stability is further supported by the fund’s focus on senior secured credit instruments, which sit at the top of capital structures and are typically backed by collateral. This positioning reduces default risk and offers higher recovery rates in stressed markets. KKC’s portfolio is broadly diversified across industries and geographies, providing risk-adjusted exposure to corporate credit with the benefit of professional management and scale through the KKR platform.

In its latest update, the manager reaffirmed that monthly income generation and capital preservation remain its top priorities. The consistent delivery of income, even during periods of market volatility, reinforces KKC’s relevance to retirees, self-managed super funds (SMSFs), and conservative portfolios.

Market Positioning and Investor Considerations

KKR Credit Income Fund has positioned itself as a core income allocation for investors seeking capital stability, regular cash flow, and protection against interest rate volatility. Its structure as a listed investment trust means distributions are paid monthly, offering a more frequent income stream than traditional bond or hybrid products.

The fund’s portfolio continues to consist primarily of senior secured, floating-rate loans originated in the U.S. market. These loans benefit from rising base rates — such as SOFR — as coupon payments adjust upward in line with rate increases. This positions KKC to outperform fixed-rate credit funds in rising or high-rate environments, making it a valuable allocation in 2025’s uncertain macro landscape.

Despite a 1-year return of -4.78%, the fund has remained stable in recent months, and distribution consistency has helped support investor confidence. Recent trading activity, including volumes over 500,000 units, indicates ongoing market interest, particularly from defensive income investors. KKC’s market price of $2.19 reflects its position near the lower end of its 52-week range ($2.00–$2.41), potentially providing a yield premium for investors seeking income at value.

The fund also benefits from KKR’s global credit platform, one of the largest private credit franchises worldwide. This provides both access to high-quality deals and superior credit due diligence — an edge that retail and SMSF investors wouldn’t be able to replicate individually.

Looking forward, the fund’s outlook will remain tied to U.S. credit conditions and central bank policy. However, its conservative loan selection, short duration, and monthly payout format make it a reliable income vehicle in both stable and uncertain times. The April distribution reaffirms the manager’s commitment to predictability and yield delivery — a compelling proposition in today’s market.