ARDC

Monthly Data

Closing Market Price $16.40
Closing NAV $17.93
Premium/Discount -8.53%
Average Monthly Volume 66,087

All data as of September 30, 2017

Inception Information

NYSE Ticker ARDC
NAV Symbol XADCX
Inception Date November 27th 2012
CUSIP 04014F102
Inception Market Price $20.00
Inception NAV $19.06

Current Distribution

Distribution* (based on 8/31/17 price) 7.86%
Ex-Dividend 9/19/17
Payable Date 9/29/17

Fees and Expenses

Annual Gross Expense Ratio 2.89%

*Monthly dividend per share annualized and divided by the September 30, 2017 market price per share. The Fund’s September 2017 distributions were comprised of net investment income and short-term capital gains. The distribution rate alone is not indicative of Fund performance. To the extent that any portion of the current distributions were estimated to be sourced from something other than income, such as return of capital, the source would have been disclosed in a Section 19(a) Notice located under the “Investor Information” section of the Fund’s website. Please note that the distribution classifications are preliminary and certain distributions may be re-classified at year end. Please refer to year-end tax documents for the final classifications of the Fund’s distributions for a given year. Distribution rates represent the latest declared regular distribution, annualized, relative to the most recent market price and NAV. The Fund’s NAV is inclusive of operating expenses. Please see the Fund’s most recent Annual Report for description of the operating expenses.

Fund Objective

Ares Dynamic Credit Allocation Fund, Inc. (the “Fund”) is a closed-end management investment company. The Fund’s investment objective is to provide an attractive level of total return, primarily through current income and, secondarily, through capital appreciation. There can be no assurance that the Fund will be able to achieve its investment objective or structure its investment portfolio as anticipated.

Investment Committee
Keith Ashton, Partner in the Ares Credit Group and Co-Head and Portfolio Manager of Structured Credit, Portfolio Manager of ARDC

Mr. Ashton is a Partner in the Ares Credit Group, Co-Head and Portfolio Manager of Structured Credit and a member of the Management Committee of Ares Management. Mr. Ashton serves as a Vice President and one of three Portfolio Managers for the Ares Dynamic Credit Allocation Fund, Inc. (NYSE:ARDC). Additionally, he serves as a member of the Ares Credit Group’s Global Structured Credit Investment Committee and the Ares Dynamic Credit Allocation Fund Investment Committee. Prior to joining Ares in 2011, Mr. Ashton was a Partner at Indicus Advisors LLP, where he focused on launching the global structured credit business in May 2007. Previously, Mr. Ashton was a Portfolio Manager and Head of Structured Credit at TIAA-CREF, where he focused on managing a portfolio of structured credit investments and helped launch TIAA’s institutional asset management business. Mr. Ashton’s experience as an investor in alternative fixed income products spans virtually all securitized asset classes, including CLOs, consumer and commercial receivables, insurance and legal settlements, small business and trade receivables, whole business securitizations, timeshare and other mortgage-related receivables, and esoteric asset classes such as catastrophe risk and intellectual property. Mr. Ashton holds a B.A. from Brigham Young University in Economics and an M.B.A. from the University of Rochester William E. Simon School of Business in Finance and Accounting.

Seth Brufsky, Partner in the Ares Credit Group and Co-Head and Portfolio Manager of U.S. Liquid Credit, Portfolio Manager, Director, President and Chief Executive Officer of ARDC

Mr. Brufsky is a Partner and Co-Head and Portfolio Manager of U.S. Liquid Credit in the Ares Credit Group and a member of the Management Committee of Ares Management. Mr. Brufsky also serves as a Director, President, Chief Executive Officer and one of three Portfolio Managers of the Ares Dynamic Credit Allocation Fund, Inc. (NYSE:ARDC). Additionally, he serves as a member of the Ares Credit Group’s U.S. Liquid Credit Investment Committee and the Ares Dynamic Credit Allocation Fund Investment Committee. Prior to joining Ares in 1998, Mr. Brufsky was a member of the Corporate Strategy and Research Group of Merrill Lynch & Co., where he focused on analyzing and marketing non-investment grade securities and was acknowledged by Institutional Investor as a member of the top-ranked credit analyst team during each year of his tenure. Previously, Mr. Brufsky was a member of the Institutional Sales and Trading Group of the Global Fixed Income Division at Union Bank of Switzerland. Mr. Brufsky serves on the Board of Directors of the Luminescence Foundation, a charitable giving organization. Mr. Brufsky holds a B.S. from Cornell University in Applied Economics and Business Management and an M.B.A., with honors, from the University of Southern California Marshall School of Business in Finance, where he was awarded the Glassick Scholarship for academic achievement.

John Leupp, Partner in the Ares Credit Group and Co-Head and Portfolio Manager of U.S. Liquid Credit, Portfolio Manager of ARDC

Mr. Leupp is a Partner in the Ares Credit Group and the Co-Head and Portfolio Manager of U.S. Liquid Credit, where he is responsible for managing Ares’ U.S. high yield and bank loan credit strategies. He is additionally a member of the Management Committee of Ares Management. Mr. Leupp serves as a Vice President and one of three Portfolio Managers for the Ares Dynamic Credit Allocation Fund, Inc. (NYSE:ARDC). Additionally, he serves as a member of the Ares Credit Group’s U.S. Liquid Credit and Private Credit Solutions Investment Committees and the Ares Dynamic Credit Allocation Fund Investment Committee. Prior to joining Ares in 2003, Mr. Leupp was a Director in the Fixed Income Department of Credit Suisse First Boston (formerly DLJ), where he focused on the gaming, lodging and leisure industries. Previously, Mr. Leupp was a High Yield Research Analyst at Libra Investments, where he focused on covering various industries. Mr. Leupp holds a B.S. from Santa Clara University in Finance and an M.A. from the University of California, Los Angeles, in Economics.

Greg Margolies, Partner in the Ares Credit Group and the Head of Markets for Ares Management

Mr. Margolies is a Partner in the Ares Credit Group, the Head of Markets for Ares, and a member of the Management Committee of Ares Management and is Vice President of CION Ares Diversified Credit Fund. Additionally, Mr. Margolies serves as a member of the Ares Credit Group’s U.S. Liquid Credit and Global Structured Credit Investment Committees, the Ares Dynamic Credit Allocation Fund Investment Committee and the Ares Private Equity Group’s Special Situations Funds Investment Committee. Prior to joining Ares in 2009, Mr. Margolies served as a Managing Director and Global Head of Leveraged Finance and Capital Commitments at Merrill Lynch & Co. and was a member of the Executive Committee for Merrill Lynch’s Global Investment Banking Group. Previously, Mr. Margolies was Co-Head of the DB Capital Mezzanine Fund. Mr. Margolies serves on the Board of Directors for the International Organization for Women and Development and the Advisory Council for University of Michigan’s Life Science Institute. Mr. Margolies holds a B.A. from the University of Michigan in International Economics and Finance and an M.B.A. from the University of Pennsylvania Wharton School of Business.

David Sachs, Partner in the Ares Strategy and Relationship Management Group, Director and Chairman of the Board of ARDC

Mr. Sachs is a Partner in the Ares Strategy and Relationship Management Group, where he focuses on the Ares Credit Group’s publicly traded funds, strategic growth opportunities for Ares and facilitating the sharing of credit knowledge across the Ares platform. He serves as a Director and Chairman of the Board of Ares Dynamic Credit Allocation Fund, Inc. (NYSE:ARDC) and is an interested trustee of CION Ares Diversified Credit Fund. Additionally, Mr. Sachs serves as a member of Ares Credit Group, Private Equity Group and Real Estate Group fund investment committees and the Ares Equity Income Opportunity Strategy Portfolio Review Committee. Prior to joining Ares in 1997, Mr. Sachs was a Principal of Onyx Partners, Inc., where he focused on merchant banking and related capital raising activities in the private equity and mezzanine debt markets. Previously, he also worked with Taylor & Co., an investment manager providing investment advisory and consulting services to members of the Bass Family of Fort Worth, Texas, and Columbia Savings and Loan Association as Executive Vice President, where he was responsible for asset-liability management and running the investment management department. Mr. Sachs serves as the Non-Executive Chairman of Terex Corporation and is on the Board of Trustees and the McCormick Advisory Council at Northwestern University. He holds a B.S. from Northwestern University in Industrial Engineering and Management Science.


To view our most recent periodic reports, including Form N-CSR, please visit the Investor Documents page of our website. We will provide to any shareholder a hard copy of our most recent audited financial statements free of charge upon email request to ARDCInvestorRelations@aresmgmt.com.

Investment Strategies and Policies

The Fund invests primarily in a broad, dynamically managed portfolio of (i) senior secured loans (“Senior Loans”) made primarily to companies whose debt is rated below investment grade; (ii) corporate bonds (“Corporate Bonds”) that are primarily high yield issues rated below investment grade; (iii) other fixed-income instruments of a similar nature that may be represented by derivatives; and (iv) securities of collateralized loan obligations (“CLOs”).

Advantages of a Dynamic Credit Strategy

Credit and economic environments don’t stay the same; neither should allocations.

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Note: For Illustrative Purposes Only. The investment allocations in any given market environment will be determined by the investment adviser based on all relevant factors and may not match the examples set forth

Under normal market conditions, at least 80% of the Fund’s Managed Assets (as defined below) will be invested in debt instruments, including (i) Senior Loans made primarily to companies whose debt is rated below investment grade, (ii) Corporate Bonds that are primarily high yield issues rated below investment grade, (iii) other fixed-income instruments of a similar nature that may be represented by derivatives, and (iv) debt and subordinated (or residual) securities issued by CLOs. The Fund expects that almost all of the senior loans and corporate bonds in which the Fund invests will be below investment grade. Corporate bonds rated below investment grade are often referred to as “high yield” securities. Senior Loans made to companies whose debt is rated below investment grade and high yield securities are often high risk and have speculative characteristics. Under normal market conditions, the Fund will not invest more than (i) 30% of its Managed Assets in securities issued by entities commonly referred to as CLOs (“CLO Securities”) and other asset-backed securities, or (ii) more than 7.5% of its Managed Assets in subordinated (or residual) tranches of CLO Securities. The Fund can invest in investment grade, below investment grade and non rated CLO Securities. The underlying obligations collateralizing such CLO  Securities will principally be Senior Loans, diversified by industry and borrower. "Managed Assets" means the total assets of the Fund (including any assets attributable to any preferred shares that may be issued or to indebtedness) minus the Fund’s liabilities other than liabilities relating to indebtedness.

Investment Process

Ares Capital Management II LLC (the “Adviser”) serves as the Fund’s investment adviser. The Adviser is an affiliate of Ares Management LLC (“Ares”). The Adviser’s investment philosophy, portfolio construction and portfolio management involve an assessment of the overall macroeconomic environment, financial markets and company specific research and analysis. Its investment approach emphasizes capital preservation, low volatility and minimization of downside risk. In addition to engaging in extensive due diligence from the perspective of a long-term investor, the Adviser’s approach seeks to reduce risk as further described below.

Leverage

The Fund may use leverage through borrowings, including loans from certain financial institutions and/ or the issuance of debt securities, as well as through the issuance of shares of preferred stock. The Fund has a revolving funding facility with an institutional lender, pursuant to which the Fund may borrow funds to make additional investments, subject to available collateral. The use of leverage is a speculative technique that involves special risks. There can be no assurance that the Fund’s leveraging strategy will be successful.

Risks and Other Considerations

Investing in the Fund's common shares involves certain risks and the Fund may not be able to achieve its intended results for a variety of reasons. Because the value of your investment in the Fund will fluctuate, there is a risk that you will lose money. Your investment will decline in value if, among other things, the value of the Fund's investments decreases. The value of your common shares also will be affected by the Fund's ability to successfully implement its investment strategy, as well as by market, economic and other conditions. As with any security, complete loss of investment is possible.

Investors should consider the investment objective and policies, risk considerations, charges and ongoing expenses of an investment carefully before investing. The prospectus contains this and other information relevant to an investment in the fund. Please read the prospectus carefully before you invest. To obtain a prospectus, please contact your investment representative or Destra Securities LLC at 877.287.9646 or access the documents page of this website.