Ares Dynamic Credit Allocation Fund Declares a Monthly Distribution of $0.1125 per Share
Ares Dynamic Credit Allocation Fund (NYSE:ARDC) has declared a monthly distribution of $0.1125 per common share for February 2025. The distribution will be payable on March 4, 2025, with an ex-date and record date of February 24, 2025.
Based on the Fund's current share price of $15.61 (as of February 11, 2025), this distribution represents an annualized distribution rate of approximately 8.65%. The Fund's Chairman, David A. Sachs, noted that the amended dividend aims to enhance future distribution stability, considering changes in spreads and market rates reduction.
The Fund emphasizes that distribution rates are estimates and may be derived from various sources, including undistributed net investment income, short-term capital gains, long-term capital gains, or return of capital. Final determinations for tax purposes will be made after the fiscal year end.
Il Fondo di Allocazione Dinamica del Credito Ares (NYSE:ARDC) ha dichiarato una distribuzione mensile di 0,1125 $ per azione comune per febbraio 2025. La distribuzione sarà pagabile il 4 marzo 2025, con una data di stacco e una data di registrazione del 24 febbraio 2025.
Basato sul prezzo attuale delle azioni del Fondo di 15,61 $ (al 11 febbraio 2025), questa distribuzione rappresenta un tasso di distribuzione annualizzato di circa l'8,65%. Il Presidente del Fondo, David A. Sachs, ha notato che il dividendo modificato mira a migliorare la stabilità delle distribuzioni future, considerando i cambiamenti negli spread e la riduzione dei tassi di mercato.
Il Fondo sottolinea che i tassi di distribuzione sono stime e possono derivare da diverse fonti, inclusi redditi da investimenti netti non distribuiti, guadagni in conto capitale a breve termine, guadagni in conto capitale a lungo termine o restituzione di capitale. Le determinazioni finali ai fini fiscali saranno effettuate dopo la fine dell'anno fiscale.
El Fondo de Asignación Dinámica de Crédito Ares (NYSE:ARDC) ha declarado una distribución mensual de $0.1125 por acción ordinaria para febrero de 2025. La distribución se pagará el 4 de marzo de 2025, con una fecha ex y una fecha de registro del 24 de febrero de 2025.
Basado en el precio actual de las acciones del Fondo de $15.61 (al 11 de febrero de 2025), esta distribución representa un tasa de distribución anualizada de aproximadamente 8.65%. El Presidente del Fondo, David A. Sachs, señaló que el dividendo modificado tiene como objetivo mejorar la estabilidad de las distribuciones futuras, considerando los cambios en los márgenes y la reducción de las tasas del mercado.
El Fondo enfatiza que las tasas de distribución son estimaciones y pueden derivarse de diversas fuentes, incluidos los ingresos netos de inversión no distribuidos, las ganancias de capital a corto plazo, las ganancias de capital a largo plazo o la devolución de capital. Las determinaciones finales para fines fiscales se realizarán después del final del año fiscal.
Ares 동적 신용 배분 펀드 (NYSE:ARDC)가 2025년 2월에 대해 주당 $0.1125의 월 배당금을 선언했습니다. 이 배당금은 2025년 3월 4일에 지급되며, 배당 기준일과 배당락일은 2025년 2월 24일입니다.
2025년 2월 11일 현재 펀드의 주가가 $15.61인 점을 고려할 때, 이 배당금은 연환산 배당률이 약 8.65%에 해당합니다. 펀드의 의장인 David A. Sachs는 수정된 배당금이 스프레드 변화와 시장 금리 인하를 고려하여 향후 배당금의 안정성을 높이는 데 목적이 있다고 언급했습니다.
펀드는 배당률이 추정치이며, 배당금은 배당되지 않은 순 투자 소득, 단기 자본 이익, 장기 자본 이익 또는 자본 반환 등 다양한 출처에서 파생될 수 있음을 강조합니다. 세무 목적을 위한 최종 결정은 회계 연도 종료 후에 이루어질 것입니다.
Le Fonds d'Allocation Dynamique de Crédit Ares (NYSE:ARDC) a déclaré une distribution mensuelle de 0,1125 $ par action ordinaire pour février 2025. La distribution sera payable le 4 mars 2025, avec une date ex et une date d'enregistrement du 24 février 2025.
Sur la base du prix actuel de l'action du Fonds de 15,61 $ (au 11 février 2025), cette distribution représente un taux de distribution annualisé d'environ 8,65%. Le président du Fonds, David A. Sachs, a noté que le dividende modifié vise à améliorer la stabilité des distributions futures, en tenant compte des changements dans les spreads et de la réduction des taux du marché.
Le Fonds souligne que les taux de distribution sont des estimations et peuvent provenir de diverses sources, y compris des revenus nets d'investissement non distribués, des gains en capital à court terme, des gains en capital à long terme ou un retour de capital. Les déterminations finales à des fins fiscales seront faites après la fin de l'exercice fiscal.
Der Ares Dynamische Kreditallokationsfonds (NYSE:ARDC) hat eine monatliche Ausschüttung von 0,1125 $ pro Stammaktie für Februar 2025 erklärt. Die Ausschüttung wird am 4. März 2025 zahlbar sein, mit einem Ex-Tag und einem Stichtag am 24. Februar 2025.
Basierend auf dem aktuellen Aktienkurs des Fonds von 15,61 $ (Stand 11. Februar 2025) entspricht diese Ausschüttung einem annualisierten Ausschüttungsrate von etwa 8,65%. Der Vorsitzende des Fonds, David A. Sachs, bemerkte, dass die geänderte Dividende darauf abzielt, die zukünftige Verteilung Stabilität zu verbessern, unter Berücksichtigung von Veränderungen der Spreads und der Senkung der Marktzinssätze.
Der Fonds betont, dass die Ausschüttungsraten Schätzungen sind und aus verschiedenen Quellen stammen können, einschließlich nicht ausgeschütteter Nettoinvestitionseinnahmen, kurzfristigen Kapitalgewinnen, langfristigen Kapitalgewinnen oder Kapitalrückzahlungen. Die endgültigen Feststellungen für steuerliche Zwecke werden nach dem Ende des Geschäftsjahres getroffen.
- Monthly distribution maintained at $0.1125 per share
- High annualized distribution rate of 8.65% at current share price
- Distribution rate may include return of capital, not just investment income
- Market rates reduction noted, potentially impacting future returns
Insights
The maintained monthly distribution of
The distribution's sustainability warrants attention from two key perspectives. First, in the current market environment where yields have generally compressed, maintaining such a distribution rate requires skilled active management and potentially increased risk-taking. Second, the fund's explicit mention of possible distribution sources beyond net investment income - including capital gains or return of capital - signals the importance of monitoring the distribution's composition in upcoming Section 19(a) notices.
A critical aspect for investors is the fund's flexibility in distribution sources. While the primary source should ideally be net investment income for long-term sustainability, the fund's dynamic credit allocation strategy allows it to potentially capitalize on market dislocations and realize capital gains. However, this flexibility also means investors need to carefully consider the tax implications, as distributions from different sources receive varying tax treatments.
The timing of this announcement, coupled with the chairman's comments about market conditions, suggests the fund is positioning itself for a potentially extended period of lower rates while striving to maintain attractive distributions to shareholders. This balancing act between distribution stability and market reality will be important for the fund's long-term performance and investor satisfaction.
NEW YORK, NY / ACCESS Newswire / February 12, 2025 / Ares Dynamic Credit Allocation Fund, Inc. (the "Fund") (NYSE:ARDC) announced today the declaration of its distribution for the month of February 2025 of
The following dates apply to the declared distribution:
Ex-Date: February 24, 2025
Record Date: February 24, 2025
Payable Date: March 4, 2025
Per Share Amount:
"Given the change in spreads and reduction in market rates, the management team and board believe the amended dividend enhances the future stability of distributions for the fund," said David A. Sachs, Director and Chairman of the Board of ARDC.
Based on the Fund's current share price of
The timing and amount of future distributions, if any, are at the discretion of the Fund. As required by Section 19(a) of the Investment Company Act of 1940, a notice will be distributed to the Fund's stockholders in the event that a portion of a monthly distribution is derived from sources other than undistributed net investment income, such as from short-term capital gain, long-term capital gain, or return of capital. Such notices will also be posted on the Fund's website at www.arespublicfunds.com.
The amounts and sources of distributions reported are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment performance during the remainder of its fiscal year and may be subject to change based on tax regulations. The final determination of the source of these distributions will be made after the Fund's fiscal year end. If necessary, the Fund may elect to pay an adjusting distribution in December that includes any additional income and net realized capital gains in excess of the monthly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code. In January or February of each year, investors will be sent a Form 1099‑DIV for the previous calendar year that will define how to report these distributions for federal income tax purposes.
This press release is not intended to, and does not constitute, an offer to purchase or sell shares of ARDC.
About Ares Dynamic Credit Allocation Fund, Inc.
Ares Dynamic Credit Allocation Fund, Inc. ("ARDC") is a closed-end management company that is externally managed by Ares Capital Management II LLC, a subsidiary of Ares Management Corporation. ARDC seeks to provide an attractive level of total return primarily through current income and, secondarily, through capital appreciation. ARDC invests in a broad, dynamically-managed portfolio of credit investments. There can be no assurance that ARDC will achieve its investment objective. ARDC's net asset value may be accessed through its NASDAQ ticker symbol, XADCX. Additional information is available at www.arespublicfunds.com.
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the U.S. securities laws, and may relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and others beyond the Fund's control. Ares Dynamic Credit Allocation Fund undertakes no duty to update any forward-looking statements made herein.
This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted. An investor should consider the Fund's investment objective, risks, charges and expenses carefully before investing.
Ares Dynamic Credit Allocation Fund is a closed-end fund, which does not engage in a continuous offering of its shares. Since its initial public offering, the Fund has traded on the New York Stock Exchange under the symbol ARDC. Investors wishing to purchase or sell shares may do so by placing orders through a broker dealer or other intermediary.
CONTACT
Ares Dynamic Credit Allocation Fund, Inc.
John Stilmar
jstilmar@aresmgmt.com
(888) 818-5298
or
Destra Capital Advisors LLC
ARDC@destracapital.com
(877) 855-3434
SOURCE: Ares Dynamic Credit Allocation Fund
View the original press release on ACCESS Newswire
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