The public offering price is equal to the NAV plus an upfront sales charge of up to 5.75% for Class A, 4.25% for Class L, 2.50% for Class U-2, 3.00% for Class W and offering costs of up to $0.25 per share. Past performance is not a guarantee of future results. Please see the current prospectus, as amended and supplemented, for more information including, but not limited to, annual fund expenses.
Class I: Estimated Annual Fund Expenses: Management Fee 1.82%; Incentive Fee 1.81%; Interest Payments on Borrowed Funds 2.56%; Remaining Other Expenses 0.56%. Expenses are annualized and calculated as a percentage of estimated average net assets.
Class A: Estimated Annual Fund Expenses: Management Fee 1.82%; Incentive Fee 1.77%; Interest Payments on Borrowed Funds 2.57%; Shareholder Servicing Fee 0.25%; Remaining Other Expenses 0.56%. Expenses are annualized and calculated as a percentage of estimated average net assets.
Class C: Estimated Annual Fund Expenses: Management Fee 1.82%; Incentive Fee 1.66%; Interest Payments on Borrowed Funds 2.57%; Shareholder Servicing Fee 0.25%; Distribution Fee 0.75%; Remaining Other Expenses 0.57%. Expenses are annualized and calculated as a percentage of estimated average net assets.
Class L: Estimated Annual Fund Expenses: Management Fee 1.82%; Incentive Fee 1.73%; Interest Payments on Borrowed Funds 2.57%; Shareholder Servicing Fee 0.25%; Distribution Fee 0.25%; Remaining Other Expenses 0.57%. Expenses are annualized and calculated as a percentage of estimated average net assets.
Class U: Estimated Annual Fund Expenses: Management Fee 1.82%; Incentive Fee 1.70%; Interest Payments on Borrowed Funds 2.57%; Distribution Fee 0.75%; Remaining Other Expenses 0.55%. Expenses are annualized and calculated as a percentage of estimated average net assets.
Class U-2: Estimated Annual Fund Expenses: Management Fee 1.82%; Incentive Fee 1.70%; Interest Payments on Borrowed Funds 2.56%; Shareholder Servicing Fee 0.25%; Distribution Fee 0.50%; Remaining Other Expenses 0.57%. Expenses are annualized and calculated as a percentage of estimated average net assets.
Class W: Estimated Annual Fund Expenses: Management Fee 1.82%; Incentive Fee 1.74%; Interest Payments on Borrowed Funds 2.57%; Distribution Fee 0.50%; Remaining Other Expenses 0.56%. Expenses are annualized and calculated as a percentage of estimated average net assets.
Current distribution rate is expressed as a percentage equal to the projected annualized distribution amount (which is calculated by annualizing the current daily cash distribution per share without compounding), divided by the relevant net asset value per share. The current distribution rate shown may be rounded.
A portion of distributions may be a direct result of expense support payments provided by CION Ares Management, LLC (CAM), which are subject to repayment by CADC within three years. The purpose of this arrangement is to ensure that CADC bears an appropriate level of expenses. Any such distributions may not be entirely based on investment performance and can only be sustained if positive investment performance is achieved in future periods and/or CAM continues to make such expense support payments. Future repayments will reduce cash otherwise potentially available for distributions. There can be no assurance that such performance will be achieved in order to sustain these distributions. CAM has no obligation to provide expense support payments in future periods.
CADC may fund distributions from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital, as well as net income from operations, capital and non-capital gains from the sale of assets, dividends or distributions from equity investments and expense support payments from CAM, which are subject to repayment. For the year ending December 31, 2023, distributions were paid from taxable income and did not include a return of capital for tax purposes. It is not anticipated that the current distribution rate will contain a return of capital. If expense support payments from CAM were not provided, some or all of the distributions may have been a return of capital which would reduce the available capital for investment. The sources of distributions may vary periodically. Please refer to the semi-annual or annual reports filed with the SEC for the sources of distributions.
Monthly Distributions – There is no assurance monthly distributions paid by the Fund will be maintained at the targeted level or paid at all.
Sharpe Ratio – a risk-adjusted measure that measures reward per unit of risk. The higher the Sharpe Ratio, the better. The numerator is the difference between a portfolio’s return and the return of a risk-free instrument. The denominator is the portfolio’s standard deviation. Figures shown here are based on non-loaded daily NAV total returns utilizing data since inception.
Standard Deviation – a widely used measure of an investment’s performance volatility. Standard deviation shows how much variation from the mean exists with a larger number indicating the data points are more spread out over a larger range of values. Figures shown here are based on non-loaded daily NAV total returns utilizing data since inception.
This is neither an offer to sell nor a solicitation to purchase the securities described herein. Such an offering is made only by means of a prospectus. Please read the prospectus prior to making any investment decision and consider the risks, charges, expenses and other important information described therein. A copy of the prospectus must be made available to you in connection with any offering. Click here to view the prospectus.
IMPORTANT DISCLOSURES TO ANNUALIZED RETURNS CHART ABOVE:
Index Disclosures: References to market or indices, benchmarks or other measures of relative market performance over a specified period of time (each, an “index”) are provided for information only. Reference to an index does not imply that a portfolio will achieve returns, volatility or other results similar to the index. The composition of an index may not reflect the manner in which a portfolio is constructed in relation to expected or achieved returns, portfolio guidelines, restrictions, sectors, correlations, concentrations, volatility or tracking error targets, all of which are subject to change over time. Investors cannot invest directly in indices and are unmanaged. Index returns reflect the reinvestment of dividends but do not reflect the deduction of any fees or expenses, which would reduce returns.
The Morningstar LSTA US Leveraged Loan Index is a market-value weighted index designed to measure the performance of the US leveraged loan market. The index serves as the market standard for the US leveraged loan asset class and tracks the performance of more than 1,400 USD denominated loans.
The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, fixed-rate agency MBS, ABS and CMBS (agency and non-agency). Provided the necessary inclusion rules are met; US Aggregate eligible securities also contribute to the multi-currency Global Aggregate Index and the US Universal Index. The US Aggregate Index was created in 1986, with history backfilled to January 1, 1976.
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. The US Corporate High Yield Index is a component of the US Universal and Global High Yield Indices. The index was created in 1998, with history backfilled to July 1, 1983.
The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. The index includes 500 leading companies and covers approximately 80% of available market capitalization.
Please be aware that the Fund, the Advisers, the Distributor or the Wholesale Marketing Agent and their respective officers, directors, employees and affiliates do not undertake to provide impartial investment advice or to give advice in a Fiduciary capacity in connection with the Fund’s public offering of shares.
CION Securities, LLC (CSL) is the wholesale marketing agent for CION Ares Diversified Credit Fund, advised by CION Ares Management, LLC (CAM) with marketing services provided by ALPS Distributors, Inc (ADI). CSL, member FINRA, and CAM are not affiliated with ADI, member FINRA.
