In plain terms — Ares Dynamic Credit Allocation Fund
Shares currently cost about 12.8% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 7.4% discount, so today's level is unusually wide for this fund (Z-score -2.7). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 11.9% a year of the share price (10.4% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.15 of assets — a ReinvestCapture™ rate of 13.6%, more than the payout rate itself. That is buying power, not a return.
The assets themselves fell 0.9% over the past year including distributions (NAV total return).
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Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | -8.96% | 2.15% | -1.73 | 64 |
| 6 months | -7.90% | 2.00% | -2.40 | 126 |
| 1 year | -7.36% | 1.98% | -2.69 | 249 |
| 3 years | -3.69% | — | — | — |
| 5 years | -6.12% | — | — | — |
Current contemporaneous premium/discount -12.68% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -13.05% to -3.59%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -6.78% | -11.68% | -15.26% | -17.19% | -3.52% | -7.36% |
| Market price total return | -5.90% | -9.21% | -8.16% | -7.95% | +6.65% | +2.23% |
| NAV return | -2.69% | -3.49% | -9.21% | -10.15% | -2.34% | -4.92% |
| NAV total return | -1.87% | -1.03% | -2.20% | -0.92% | +7.50% | +4.25% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
Ares Dynamic Credit Allocation Fund, Inc. operates as a closed-end mutual fund dedicated to fixed-income investments, initially launched by Ares Management LLC. Its investment management responsibilities are handled by Ares Capital Management II LLC. The fund strategically deploys capital across European fixed-income markets. Its holdings primarily consist of diverse debt instruments, including senior loans predominantly issued to companies with sub-investment grade credit ratings, high-yield corporate bonds also rated below investment grade, debt securities originating from Collateralized Loan Obligations (CLOs), and other various fixed-income products. The creation of its portfolio is driven by an in-depth evaluation of the global macroeconomic landscape, prevailing financial market dynamics, and specific company research and analysis. This fund was established on November 27, 2012, and is headquartered in the United States.
CEF Explorer research page for Ares Dynamic Credit Allocation Fund, Inc.. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.