CION Ares Diversified Credit Fund Increases Distribution Rate

CION Ares Diversified Credit Fund declared an increase to its daily base distribution rates for all share classes, effective Oct. 1, 2023.

The daily distribution rate to Class A shares will increase to $0.0061419, which reflects an annualized rate of 9.1% in relation to the fund’s NAV of Class A shares as of Aug. 31, 2023. The new rate is equal to a 4.7% increase compared to the previously declared base distribution amount, resulting in a 4.24% increase to the combined distribution daily amount of $0.0058923 per Class A share.

The daily distribution rate to Class C shares will increase to $0.0055918, which reflects 8.35% of the NAV of Class C shares as of August 31, 2023, on an annualized basis. The increased declared daily Class C share base distribution rate equals a 4.13% increase compared to the previously declared base distribution amount, resulting in a 3.66% increase to the combined distribution daily amount of $0.0053945 per Class C share.

The daily distribution rate to Class I shares will increase to $0.0063787, which reflects 9.35% of the NAV of Class I shares as of August 31, 2023, on an annualized basis. The increased declared daily Class I share base distribution rate equals a 5.00% increase compared to the previously declared base distribution amount, resulting in a 4.55% increase to the combined distribution daily amount of $0.0061014 per Class I share.

The daily distribution rate to Class L shares will increase to $0.0059918, which reflects 8.85% of the NAV of Class L shares as of August 31, 2023, on an annualized basis. The increased declared daily Class L share base distribution rate equals a 5.58% increase compared to the previously declared base distribution amount, resulting in a 5.08% increase to the combined distribution daily amount of $0.0057023 per Class L share.

The daily distribution rate to Class U shares will increase to $0.0058303, which reflects 8.60% of the NAV of Class U shares as of August 31, 2023, on an annualized basis. The increased declared daily Class U share base distribution rate equals a 5.50% increase compared to the previously declared base distribution amount, resulting in a 4.96% increase to the combined distribution daily amount of $0.0055549 per Class U share.

The daily distribution rate to Class U-2 shares will increase to $0.0058240, which reflects 8.60% of the NAV of Class U-2 shares as of August 31, 2023, on an annualized basis. The increased declared daily Class U-2 share base distribution rate equals a 5.38% increase compared to the previously declared base distribution amount, resulting in a 4.84% increase to the combined distribution daily amount of $0.0055549 per Class U-2 share.

The daily distribution rate to Class W shares will increase to $0.0060372, which reflects 8.85% of the NAV of Class W shares as of August 31, 2023, on an annualized basis. The increased declared daily Class W share base distribution rate equals a 5.27% increase compared to the previously declared base distribution amount, resulting in a 4.78% increase to the combined distribution daily amount of $0.0057617 per Class W share.

As The DI Wire previously reported, Cion Ares declared an increase to its investor distribution rates in April 2023.

CION Ares Diversified Credit Fund is a continuously offered, diversified, non-traded closed-end management investment company that is structured as an interval fund. The fund’s investment objective is to provide superior risk-adjusted returns across various market cycles by investing in a globally diversified portfolio of liquid and illiquid credit assets. The fund currently manages approximately $3.7 billion in assets.

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