Ares Dynamic Credit Allocation Fund Declares a Monthly Distribution of $0.1125 per Share

Rhea-AI Summary

Ares Dynamic Credit Allocation Fund (NYSE:ARDC) has declared its monthly distribution of $0.1125 per common share for March 2025. The distribution schedule is as follows:

• Ex-Date: March 21, 2025
• Record Date: March 21, 2025
• Payable Date: March 31, 2025

Based on the Fund's current share price of $14.15 (as of March 10, 2025), this distribution represents an annualized distribution rate of approximately 9.54%. The Fund notes that distribution rates are not indicative of future results or total investment returns. Distributions may be derived from various sources, including undistributed net investment income, capital gains, or return of capital, with final determination made after fiscal year-end.

Positive

• Monthly distribution maintained at $0.1125 per share
• High annualized distribution rate of 9.54% based on current share price

Negative

• Distribution rate may include return of capital, not just investment income
• Future distribution amounts and timing are not guaranteed

Insights

Financial Analyst

Ares Dynamic Credit Allocation Fund's (ARDC) declaration of its $0.1125 monthly distribution maintains its consistent income stream for shareholders. This translates to an 9.54% annualized distribution rate based on the current $14.15 share price.

For closed-end fund investors, this distribution level is notably attractive in the current market environment. While the announcement doesn't indicate a distribution increase, maintaining this payout level demonstrates the fund's continued ability to generate income from its underlying credit investments despite shifting market conditions.

It's worth examining that the fund includes standard language about distributions potentially coming from sources other than undistributed net investment income, including short-term capital gains, long-term capital gains, or return of capital. This disclosure is routine for such funds but reminds investors that not all distributions necessarily represent sustainable income generation from the underlying portfolio.

Closed-end funds like ARDC often trade at discounts or premiums to their Net Asset Value (NAV). The consistent distribution policy helps maintain investor interest, potentially supporting the fund's market pricing. For income-focused investors, ARDC continues to offer a compelling yield option in the credit allocation space, though as with any investment, total return considerations should include both distributions and any potential NAV changes over time.

NEW YORK, NY / ACCESS Newswire / March 11, 2025 / Ares Dynamic Credit Allocation Fund, Inc. (the "Fund") (NYSE:ARDC) announced today the declaration of its distribution for the month of March 2025 of $0.1125 per common share, payable as noted below.

The following dates apply to the declared distribution:

Ex-Date: March 21, 2025
Record Date: March 21, 2025
Payable Date: March 31, 2025
Per Share Amount: $0.1125

Based on the Fund's current share price of $14.15 (as of its close on March 10, 2025), the distribution represents an annualized distribution rate of approximately 9.54% (calculated by annualizing the distribution amount and dividing it by the current price). Information regarding the distribution rate is included for informational purposes only and is not necessarily indicative of future results, the achievement of which cannot be assured. The distribution rate should not be considered the yield or total return on an investment in the Fund.

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

FAQ

What is the March 2025 distribution amount for ARDC shares?

ARDC declared a distribution of $0.1125 per common share for March 2025.

When is the payment date for ARDC's March 2025 distribution?

The distribution is payable on March 31, 2025, with an ex-date and record date of March 21, 2025.

What is ARDC's current annualized distribution rate based on share price?

Based on the March 10, 2025 share price of $14.15, the annualized distribution rate is approximately 9.54%.

How are ARDC's distributions reported for tax purposes?

Investors receive Form 1099-DIV in January or February for the previous calendar year's distributions, with final source determination made after fiscal year-end.