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CION Ares Diversified Credit Fund Increases Investor Distributions Again

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CION Ares Diversified Credit Fund declared an increase to its investor distribution rates for all share classes, effective as of Jan. 1, 2023.

As The DI Wire previously reported in September 2022, CION Ares Diversified Credit Fund announced a separate increase to its monthly investor distribution rates effective as of the start of October 2022.

The annualized distribution rate for Class I shares, the fund’s largest share class, increased to 7.29% of the NAV per share of $24.12, as of Dec. 31, 2022, representing a 10% increase to the distribution rate for Class I. The company says other share classes may be available at certain intermediaries.

CION noted that over the past twelve months, the annualized distribution rate of the fund’s Class I shares rose more than 26%, from $1.39 per share to $1.76 per share.

“We believe that the performance of the fund throughout the volatility experienced during 2022 is a testament to the fund’s dynamic allocation process, defensive positioning and disciplined investment approach,” said CION co-chief executive officer Michael A. Reisner.

The daily distribution rate to Class A shares will increase to $0.0046160, which reflects 6.98% of the NAV of Class A shares as of Nov. 30, 2022, on an annualized basis.  The increased declared daily Class A share distribution rate equals an 11.0% increase compared to the previously declared distribution daily amount of $0.0041586 per Class A share.

The daily distribution rate to Class C shares will increase to $0.0040823, which reflects 6.23% of the NAV of Class C shares as of Nov. 30, 2022, on an annualized basis.  The increased declared daily Class C share distribution rate equals a 7.0% increase compared to the previously declared distribution daily amount of $0.0038152 per Class C share.

The daily distribution rate to Class I shares will increase to $0.0048232, which reflects 7.23% of the NAV of Class I shares as of Nov. 30, 2022, on an annualized basis.  The increased declared daily Class I share distribution rate equals a 10.0% increase compared to the previously declared distribution daily amount of $0.0043847 per Class I share.

The daily distribution rate to Class L shares will increase to $0.0044689, which reflects 6.73% of the NAV of Class L shares as of Nov. 30, 2022, on an annualized basis.  The increased declared daily Class L share distribution rate equals an 11.0% increase compared to the previously declared distribution daily amount of $0.0040260 per Class L share.

The daily distribution rate to Class U shares will increase to $0.0042773, which reflects 6.48% of the NAV of Class U shares as of Nov. 30, 2022, on an annualized basis.  The increased declared daily Class U share distribution rate equals an 11.0% increase compared to the previously declared distribution daily amount of $0.0038534 per Class U share.

The daily distribution rate to Class U-2 shares will increase to $0.0042773, which reflects 6.48% of the NAV of Class U-2 shares as of Nov. 30, 2022, on an annualized basis.  The increased declared daily Class U-2 share distribution rate equals an 11.0% increase compared to the previously declared distribution daily amount of $0.0038534 per Class U-2 share.

The daily distribution rate to Class W shares will increase to $0.0044689, which reflects 6.73% of the NAV of Class W shares as of Nov. 30, 2022, on an annualized basis.  The increased declared daily Class W share distribution rate equals an 11.0% increase compared to the previously declared distribution daily amount of $0.0040260 per Class W share.

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 had total managed assets of $3.7 billion as of Sept. 31, 2022.

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