* The public offering price is equal to the NAV plus a sales load of up to 5.75% (which consists of selling commissions of up to 5.0% and dealer manager fees of up to 0.75%) 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.
** Current distribution rate is expressed as a percentage equal to the projected annualized distribution amount (which is calculated by annualizing the current cash distribution per share without compounding), divided by the current net asset value. The current distribution rate shown may be rounded.
The tax characterization of distributions cannot be determined until after the end of the tax year. As a result, total distributions during a tax year may exceed current and accumulated earnings and profits. A distribution of an amount in excess of current and accumulated earnings and profits will be treated as a return of capital. Distributions will be treated in the manner described regardless of whether such distributions are paid in cash or reinvested. Generally, for U.S. federal income tax purposes, shares received under the DRP will be treated as having received a distribution.
A portion of distributions may be from expense payments provided by CION Ares Management, LLC (“CAM”) which are subject to repayment by CION Ares Diversified Credit Fund within three years. The purpose of this arrangement is to avoid such distributions being characterized as returns of capital for tax purposes. Any such distributions are not 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 payments. Future repayments will reduce 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 payments in future periods.
CION Ares Diversified Credit Fund may fund cash distributions from offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies and expense payments from CAM, which are subject to repayment. To date, distributions have not been paid from offering proceeds or borrowings. To date, if expense payments from CAM were not supported, some or all of the distributions may have been a return of capital for tax purposes; however, distributions have not included a return of capital for tax purposes as of the date hereof. The sources of distributions may vary frequently. Please refer to the current and future annual quarterly reports filed with the SEC for the sources of distributions.
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.
CION Securities, LLC (“CSL”) is the wholesale marketing agent for CION Ares Diversified Credit Fund, advised by CION Ares Management, LLC (“CAM”) and distributed by ALPS Distributors, Inc (“ADI”). CSL, member FINRA, and CAM are not affiliated with ADI, member FINRA.