DIRECTORY SPOTLIGHT
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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