ARDC Stock Recent News

BGH: The Corinthia Corporate Raid Could Damage This Credit Fund, Buyer Beware

Quantitative screens narrow down attractive closed-end fund candidates for further investigation. "Quality" report focuses on funds with coverage exceeding 100% to potentially reduce the risk of distribution cuts. Rankings provide shortlists for further research, not final buy or sell decisions.

NHS: This Fund Is Looking Very Expensive Given Current Fundamentals (Rating Downgrade)

The Ares Dynamic Credit Allocation Fund, Inc. is a closed-end fund designed to provide income-focused investors with a high level of income from their assets. The ARDC closed-end fund has a strong performance track record and is managed by Ares Management Corporation, known for being one of the best credit managers in the industry. The fund's portfolio is designed to generate strong returns regardless of whether interest rates go up or down, making it a good choice in the current uncertain interest rate environment.

Key Decision Factors For CEF Allocation In Today's Market

2023 year-end review of our 8% Income Portfolio. This high-income portfolio earned over $29,000 in distributions amounting to over 14% yield-on-cost basis and roughly 8.6% on average portfolio value. We will provide updates on trades during the year, dividends collected, and overall performance. As usual, we will compare the performance with a traditional 60:40 stock/bond portfolio.

We review CEF market valuation and performance through the second week of January and highlight recent market action. Most CEF sectors were up on the week, with CMBS delivering the best return. Discounts are tightening across all but one sector. CEF sector designation is not a precise endeavor, creating potential pitfalls for investors.

For income investors, closed-end funds remain an attractive investment class that covers a variety of asset classes and promises high distributions and reasonable total returns. Closed-end funds, or CEFs, are generally characterized by higher volatility and deeper drawdowns than the broader market. For these reasons, they are not suited for everyone. In this monthly series, we highlight five CEFs with solid track records that pay high distributions and offer "excess" discounts. We try to separate the wheat from the chaff using our filtering process to select just five CEFs every month from around 500 closed-end funds.

Ares Dynamic Credit Allocation Fund is a flexible, diversified fixed-income fund managed by Ares Management. The fund has strong distribution coverage and has increased its distribution several times, with the potential for another increase. ARDC is trading at a historically attractive discount, making it an opportunity in the current environment.

Ares Dynamic Credit Allocation Fund, Inc. offers a competitive 11.02% distribution yield, appealing to income-focused investors. The ARDC closed-end fund's performance has been stable, outperforming the Bloomberg U.S. Aggregate Bond Index over the past three months. The fund's allocation to both fixed-rate bonds and floating-rate loans allows it to capitalize on changing interest rates.