CION Ares Diversified Credit Fund NCSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-23165

CION ARES DIVERSIFIED CREDIT FUND

(Exact name of registrant as specified in charter)

100 PARK AVENUE

25^TH FLOOR

NEW YORK, NEW YORK 10017

(Address of principal executive offices)(Zip code)

Eric A. Pinero

100 Park Avenue, 25th Floor

New York, New York 10017

(Name and Address of Agent for Service)

Copy to:

Michael A. Reisner

Mark Gatto

CION Ares Diversified Credit Fund

100 Park Avenue, 25th Floor

New York, New York 10017

Jay Spinola, Esq.

Michael A. DeNiro, Esq.

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019

Registrant’s telephone number, including area code: (646) 845-2577

Date of fiscal year end: December 31

Date of reporting period: January 1, 2024 - June 30, 2024 

Item 1. Report to Stockholders.

(a)

CION Ares Diversified Credit Fund

Contents

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Letter to Shareholders

June 30, 2024

Fellow Shareholders,

We are pleased to present the semi-annual report for the CION Ares Diversified Credit Fund (the “Fund” or “CADC”), for the period ending June 30, 2024. The Fund has continued to experience steady asset growth, with total managed assets reaching approximately $5.2 billion as of June 30, 2024. The Fund returned +5.21%¹ over the year-to-date period, benefitting from elevated base rates, stable credit fundamentals within the portfolio and tactical asset allocation. As of period-end, the Fund had exposure to over 700 investments, diversified across 24 unique industries. Secured debt instruments accounted for 89%² of the Fund and 66%³ of the portfolio was deployed in investments directly originated by investment groups within the Ares Management Corporation (“Ares”) platform. The Fund’s distribution rate was stable during the period, ending June 30 at 9.18%⁴. CADC’s relative value approach across liquid and illiquid credit sectors enabled the portfolio to capitalize on market opportunities across global credit markets during the period, while maintaining steady distributions of income and preserving shareholder capital.

Investment Philosophy and Process

The Fund employs a dynamic asset allocation framework that seeks to offer enhanced yield and downside risk mitigation, while enabling the Fund’s investment advisor, CION Ares Management, LLC (“CION Ares Management,” “CAM” or the “Advisor”) and the Fund’s investment sub-advisor, Ares Capital Management II LLC (the “Sub-Advisor”), an affiliate of Ares, to respond to changing market conditions. We believe the Fund’s differentiated, diversified portfolio of directly originated and liquid investments can provide superior risk-adjusted returns for our shareholders. Active management across a broad spectrum of credit asset classes, including direct lending in the United States and Europe, high yield bonds, leveraged loans, structured credit, real estate debt, and other credit instruments provides the opportunity to generate attractive risk-adjusted returns by capturing the best relative value.

The Fund’s investment process is rigorous and incorporates both top-down and bottom-up factors. The Advisor leverages the resources of the Sub-Advisor to conduct ongoing proprietary analysis at the asset-class level, comparing current market conditions with historical and industry-level precedents to examine the rate environment, correlation to public markets, and local/regional risks. This information is brought before the Advisor’s allocation committee, where senior members overseeing each of the underlying asset classes share their observations with the Fund’s portfolio managers.

Investment Environment

Markets began the year on strong footing due to continued macroeconomic stability and resilient corporate fundamentals, which offset moderating interest rate expectations. The macro environment was supported by strong labor conditions and manufacturing data that steadily moved from contractionary to expansionary levels. While inflation was firmer than expected in the first quarter, recent trends have been more temperate and thus constructive of the path toward the Federal Reserve (the “Fed”) achieving its 2% target. While the Fed has maintained rates at elevated levels, there is growing speculation that the central bank will lower rates later this year, though many question whether the central bank will take action in the middle of an election cycle.

Stable macroeconomic conditions have contributed to positive returns across equity and credit markets. Public equities have returned +15.29%⁵ for the year-to-date period due to sound corporate earnings, artificial intelligence fervor and expectations of lower interest rates. Within credit, dispersion among credit sectors has been elevated as investors continue to capitalize on the “higher for longer” rate environment. Syndicated loans have benefitted from a strong demand technical and returned +4.44%⁶ over the trailing 6 months. Conversely, high yield bonds have returned 2.62%⁷ for the period as demand has been less robust while treasury rate volatility has been elevated. Emblematic of investor focus on yield, both credit sectors outperformed traditional fixed income, which returned -0.71%⁸ over the same period.

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Letter to Shareholders (continued)

June 30, 2024

A number of common themes have unfolded within leveraged credit markets year-to-date. Despite headlines suggesting the contrary, default conditions have remained benign with syndicated loan and high yield bond default rates remaining below their respective averages throughout the period, at 3.10% and 1.79%⁹ respectively. Regarding technicals, increased certainty about the go-forward path of rates has lead to a significant uptick in bank lending. Syndicated loan volumes have nearly doubled all of 2023’s issuance in just the first six months of 2024, and high yield bond issuance is up 76% year- over-year¹⁰ as banks and companies become increasingly comfortable with the interest rate environment. Within private credit, deployment has accelerated as private equity sponsors have also gained comfort with the interest rate environment, driving increased M&A volumes in recent months. Market conditions have become increasingly competitive alongside the pickup in activity, underscoring the importance of incumbency and a scaled origination network. Corporate fundamentals remained firm, with companies reporting positive EBITDA and revenue growth, and debt service metrics showing signs of improvement relative to prior periods.

Specific to CADC, the Fund continues to maintain a stable income profile with an attractive 10.64% current yield¹¹and 9.18% distribution rate⁴. We are excited about the opportunities that lie ahead in the global credit markets and continue to actively participate in corporate and asset-backed direct lending opportunities, while seeking to take advantage of pockets of volatility within the liquid credit markets. While the Fund maintains a core allocation to directly originated assets, we continue to utilize the depth and breadth of Ares’ investment capabilities to identify pockets of relative value across traded segments of the market, such as high yield bonds, syndicated loans and CLO securities. We continue to closely monitor macroeconomic and idiosyncratic conditions, proactively manage exposures, and identify relative value opportunities created by shifts in sentiment on macro data releases, corporate fundamental trends and geopolitical events.

Summary

While conditions remain sound, credit dispersion is increasing and we expect bouts of market volatility to surface moving forward as the market reacts to macro headlines, central bank activity and a generally volatile geopolitical environment. We remain focused on downside protection and asset selectivity, with a bias towards direct lending in the U.S. and Europe while dynamically allocating across liquid and alternative credit markets as attractive relative value opportunities appear. We are pleased with the ongoing construction of the Fund’s diversified portfolio, and we believe the Fund is well positioned to find compelling opportunities in an unpredictable market environment given our emphasis on senior secured, floating rate, directly originated assets in defensive, non-cyclical, service-based sectors. We believe Ares’ scaled platform, tenured experience and cycle-tested investment process will allow the Fund to successfully navigate the evolving market environment.

We thank you for your investment in and continued support of the CION Ares Diversified Credit Fund.

Sincerely,

/s/ Mitch Goldstein	/s/ Greg Margolies	/s/ Michael Smith
Mitch Goldstein	Greg Margolies	Michael Smith
Portfolio Manager	Portfolio Manager	Portfolio Manager
CION Ares Diversified Credit Fund	CION Ares Diversified Credit Fund	CION Ares Diversified Credit Fund

Views expressed are those of CION Ares Management as of the date of this communication, are subject to change at any time, and may differ from the views of other portfolio managers or of Ares as a whole. Although these views are not intended to be a forecast of future events, a guarantee of future results, or investment advice, any forward-looking statements are not reliable indicators of future events and no guarantee is given that such activities will occur as expected or at all. Information contained herein has been obtained from sources believed to be reliable, but the accuracy and completeness of the information cannot be guaranteed. CION Ares Management does not undertake any obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise, except as required by law. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results.

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Letter to Shareholders (continued)

June 30, 2024

CION Securities, LLC (“CSL”) is the wholesale marketing agent for the Fund, advised by CION Ares Management and distributed by ALPS Distributors, Inc (“ADI”). CSL, member FINRA, and CAM are not affiliated with ADI, member FINRA. Certain Ares fund securities may be offered through its affiliate, Ares Management Capital Markets LLC, a broker-dealer registered with the SEC, and a member of FINRA and SIPC.

Past performance is not indicative of future results. Performance shown here is the I-Share Class. The I-Share was incepted on July 12, 2017. Returns include reinvestment of distributions and reflect fund expenses inclusive of recoupment of previously provided expense support. The expense ratio is 4.17% as of June 30, 2024 excluding interest expense. Expense ratios are annualized and calculated as a percentage of estimated average net assets. Share values will fluctuate, therefore if repurchased, they may be worth more or less than their original cost.

Secured Debt includes First and Second Lien assets, Structured Credit Debt, Structured Credit Equity. Excludes Cash.

Includes U.S. Direct Lending, European Direct Lending, Alternative Credit, Real Estate Debt and Opportunistic investments. Excludes cash.

⁴

The current distribution rate is expressed as a percentage equal to the projected annualized distribution amount (which is calculated by annualizing the current daily cash distribution per share without compounding), divided by the relevant net asset value per share. A portion of distributions may be a direct result of expense support payments provided by CION Ares Management, which are subject to repayment by CADC within three years. The purpose of this arrangement is to ensure that CADC bears an appropriate level of expenses. Any such distributions may not be entirely 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 support payments. Future repayments will reduce cash otherwise potentially available for 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 support payments in future periods.

⁵

Proxy: S&P 500 Index. Please refer to Index Definitions for index definitions.

⁶

Proxy: Credit Suisse Leveraged Loan Index. Please refer to Index Definitions for index definitions.

⁷

Proxy: ICE BofA US High Yield Index. Please refer to Index Definitions for index definitions.

⁸

Proxy: Bloomberg Aggregate Bond Index. Please refer to Index Definitions for index definitions.

⁹

Source: JP Morgan Default Monitor. As of June 30, 2024.

¹⁰

Source: JP Morgan Market Monitor. As of June 30, 2024.

¹¹

CADC’s current yield does not represent a return to investors.

Index Definitions

The Bloomberg Aggregate Bond Index measures the performance of the U.S. investment grade bond market. The index invests in a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States — including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year. To be included in the index, bonds must be rated investment grade (at least Baa3/BBB) by Moody’s and S&P. Inception date: January 1, 1976.

The Standard & Poor’s 500 Index, often abbreviated as the S&P 500, or just “the S&P”, is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ. The index components and their weightings are determined by S&P Dow Jones Indices.

The Credit Suisse Leveraged Loan Index is designed to mirror the investable universe of the US dollar-denominated leveraged loan market. The index inception is January 1992. The index frequency is daily, weekly and monthly. New loans are added to the index on their effective date if they qualify according to the following criteria: 1) Loan facilities must be rated “5B” or lower. That is, the highest Moody’s/S&P ratings are Baa1/BB+ or Ba1/BBB+. For unrated loans, the initial spread must be 125 basis points or higher above the benchmark reference reset rate. 2) Only fully-funded term loan facilities are included. 3) The tenor must be at least one year. 4) Issuers must be domiciled in developed countries; issuers from developing countries are excluded.

The ICE BofA US High Yield Index tracks the performance of US dollar denominated below investment grade corporate debt publicly issued in the US domestic market. Qualifying securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule and a minimum amount outstanding of $100 million. Index constituents are capitalization-weighted based on their current amount outstanding times the market price plus accrued interest. Accrued interest is calculated assuming next-day settlement. Cash flows from bond payments that are received during the month are retained in the index until the end of the month and then are removed as part of the rebalancing. Cash does not earn any reinvestment income while it is held in the index. The index is rebalanced on the last calendar day of the month, based on information available up to and including the third business day before the last business day of the month. No changes are made to constituent holdings other than on month end rebalancing dates. Inception date: August 31, 1986.

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Fund Fact Sheet — As of June 30, 2024

CLASS A CADEX | CLASS C CADCX | CLASS I CADUX | CLASS L CADWX

CLASS U CADZX | CLASS U2 CADSX | CLASS W CADFX

FUND OVERVIEW

CION Ares Diversified Credit Fund (CADC) is a diversified, unlisted closed-end management investment company registered under the 1940 Act as an interval fund. The Fund will seek to capitalize on market inefficiencies and relative value opportunities by dynamically allocating a portfolio of directly originated loans, secured floating and fixed rate syndicated loans, corporate bonds, asset-backed securities, commercial real estate loans and other types of credit instruments which, under normal circumstances, will represent at least 80% of the Fund’s assets.

Excludes cash, other net assets and equity instruments.

KEY FACTS

TOTAL MANAGED ASSETS*	$	5.2B
TOTAL ISSUES		757
DISTRIBUTIONS¹		Monthly

		CURRENT
		DISTRIBUTION			STANDARD			SHARPE RATIO⁴
SHARE CLASS	INCEPTION	RATE²			DEVIATION³			(ANNUALIZED)
CLASS A	1/26/2017		8.94	%		3.74	%		1.04
CLASS C	7/12/2017		8.19	%		3.73	%		0.98
CLASS I	7/12/2017		9.18	%		3.76	%		1.10
CLASS L	11/2/2017		8.69	%		3.81	%		0.98
CLASS U	7/25/2019		8.44	%		4.25	%		0.83
CLASS U-2	4/13/2020		8.44	%		2.96	%		2.50
CLASS W	12/4/2018		8.69	%		4.08	%		1.01

Top 10 Holdings* % of Portfolio

Global Medical Response	1.0	%
Citrix	1.0	%
Kaseya	0.9	%
Mimecast	0.9	%
Central Security Group	0.9	%
Nielsen	0.8	%
Mavis Tire & Express Oil	0.8	%
High Street Insurance Partners	0.8	%
Equinox Fitness Clubs	0.8	%
Ardonagh Packaging	0.8	%

Allocation by Industry* % of Portfolio

Software and Services	20.9	%
Health Care Equipment and Services	9.3	%
Financial Services	8.5	%
Commercial and Professional Services	8.5	%
Capital Goods	7.7	%
Insurance	7.2	%
Consumer Services	6.2	%
Structured Products	6.0	%
Other	25.6	%
Cash	0.0	%

Holdings and allocations, unless otherwise indicated, are based on the total managed assets and subject to change without notice. Total managed assets is defined as the total assets (including any assets attributable to financial leverage) minus accrued liabilities (other than debt representing financial leverage). Data shown is for informational purposes only and not a recommendation to buy or sell any security.

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Fund Fact Sheet — As of June 30, 2024 (continued)

CLASS A CADEX | CLASS C CADCX | CLASS I CADUX | CLASS L CADWX

CLASS U CADZX | CLASS U2 CADSX | CLASS W CADFX

MANAGEMENT TEAM

●

Mitch Goldstein, Co-Head of Ares Credit Group | 28 Years of Experience

●

Greg Margolies, Partner, Ares Management | 35 Years of Experience

●

Michael Smith, Co-Head of Ares Credit Group | 28 Years of Experience

●

CADC’s allocation committee consists of an additional 13 members, averaging nearly 25 years of experience.

ABOUT CION INVESTMENTS

CION Investments is a leading manager of investment solutions designed to redefine the way individual investors can build their portfolios and help meet their long-term investment goals. With more than 30 years of experience in the alternative asset management industry, CION strives to level the playing field. CION currently manages CION Investment Corporation, a leading BDC, and sponsors, through CION Ares Management, CION Ares Diversified Credit Fund, a globally diversified interval fund.

ABOUT ARES MANAGEMENT

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. Ares Management Corporation seeks to provide flexible capital to support businesses and create value for its stakeholders and within its communities. By collaborating across its investment groups, Ares Management Corporation aims to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2024, Ares Management Corporation’s global platform had approximately $428 billion of assets under management, with over 2,500 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

RISK DISCLOSURES & GLOSSARY

Risks and limitations include, but are not limited to, the following: investment instruments may be susceptible to economic downturns; most of the underlying credit instruments are rated below investment grade and considered speculative; there is no guarantee all shares can be repurchased; the Fund’s business and operations may be impacted by fluctuations in the capital markets; the Fund is a diversified, closed-end investment company with limited operating history; diversification does not eliminate the risk of investment losses.

Monthly Distributions — There is no assurance monthly distributions paid by the fund will be maintained at the targeted level or paid at all.

Current Distribution Rate — 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 net asset value. The current distribution rate shown may be rounded.

Standard Deviation — a widely used measure of an investment’s performance volatility. Standard deviation shows how much variation from the mean exists with a larger number indicating the data points are more spread out over a larger range of values. Figures shown here are based on non-loaded daily NAV total returns utilizing data since inception.

⁴

Sharpe Ratio — a risk-adjusted measure that measures reward per unit of risk. The higher the Sharpe Ratio, the better. The numerator is the difference between a portfolio’s return and the return of a risk-free instrument. The denominator is the portfolio’s standard deviation. Figures shown here are based on non-loaded daily NAV total returns utilizing data since inception.

A portion of distributions may be a direct result of expense support payments provided by CION Ares Management, LLC (CAM), which are subject to repayment by CADC within three years. The purpose of this arrangement is to ensure that CADC bears an appropriate level of expenses. Any such distributions may not be entirely 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 support payments. Future repayments will reduce cash otherwise potentially available for 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 support payments in future periods.

CADC may fund distributions from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital, as well as net income from operations, capital and non-capital gains from the sale of assets, dividends or distributions from equity investments and expense support payments from CAM, which are subject to repayment. For the year ending December 31, 2023, distributions were paid from taxable income and did not include a return of capital for tax purposes. If expense support payments from CAM were not provided, some or all of the distributions may have been a return of capital which would reduce the available capital for investment. The sources of distributions may vary periodically. Please refer to the semi-annual or annual reports filed with the SEC for the sources of distributions.

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Automobiles and Components

Automotive Keys Group, LLC

1st Lien Term Loan

11.98% (3M SOFR +6.50%)

11/06/2025

1,845

1,771

^(e)(f)

Clarios Global LP

1st Lien Term Loan

8.34% (1M SOFR +3.00%)

05/06/2030

7,817

7,827

Collision SP Subco, LLC

1st Lien Revolving Loan

10.83% (3M SOFR +5.50%)

01/29/2030

^(e)(h)

Collision SP Subco, LLC

1st Lien Term Loan

10.83% (3M SOFR +5.50%)

01/29/2030

746

731

^(e)

Collision SP Subco, LLC

1st Lien Delay Draw Term Loan

10.74% (6M SOFR + 5.50%)

01/29/2030

^(e)(h)

Continental Acquisition Holdings, Inc.

1st Lien Revolving Loan

9.18% (1M SOFR +3.75%)

01/20/2026

^(e)(h)

Continental Acquisition Holdings, Inc.

1st Lien Term Loan

12.48% (3M SOFR +7.00%)

01/20/2027

6,041

4,772

^(e)(f)(g)

Continental Acquisition Holdings, Inc.

1st Lien Delay Draw Term Loan

12.48% (3M SOFR +7.00%)

01/20/2027

1,467

1,159

^(e)(f)(g)

Highline Aftermarket Acquisition, LLC

1st Lien Revolving Loan

11/10/2025

—

^(e)(h)

Highline Aftermarket Acquisition, LLC

2nd Lien Term Loan

13.48% (3M SOFR +8.00%)

11/09/2028

5,942

5,943

^(e)(f)

Highline Aftermarket Acquisition, LLC

2nd Lien Delay Draw Term Loan

13.48% (3M SOFR +8.00%)

11/09/2028

4,209

^(e)

New Churchill Holdco LLC

1st Lien Revolving Loan

10.77% (6M SOFR +5.50%)

11/09/2029

^(e)(h)

New Churchill Holdco LLC

1st Lien Term Loan

10.83% (3M SOFR +5.50%)

11/09/2029

1,206

^(e)(f)

New Churchill Holdco LLC

1st Lien Delay Draw Term Loan

10.83% (3M SOFR +5.50%)

11/09/2029

585

^(e)(h)

Sun Acquirer Corp.

1st Lien Revolving Loan

09/08/2027

—

^(e)(h)

Sun Acquirer Corp.

1st Lien Term Loan

11.21% (1M SOFR +5.75%)

09/08/2028

8,171

8,172

^(e)(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Sun Acquirer Corp.

1st Lien Delay Draw Term Loan

11.21% (1M SOFR + 5.75%)

09/08/2028

4,712

^(e)(h)

Truck-Lite Co., LLC and Ecco Holdings Corp.

1st Lien Revolving Loan

11.08% (1M SOFR + 5.75%)

02/13/2030

^(e)(g)(h)

Truck-Lite Co., LLC and Ecco Holdings Corp.

1st Lien Term Loan

11.07% (3M SOFR + 5.75%)

02/13/2031

11,336

11,110

^(e)(g)

Truck-Lite Co., LLC and Ecco Holdings Corp.

1st Lien Delay Draw Term Loan

02/13/2031

—

^(e)(g)(h)

Wand Newco 3, Inc.

1st Lien Term Loan

9.09% (1M SOFR + 3.75%)

01/30/2031

17,959

18,068

70,369

1.83

Capital Goods

AIM Acquisition, LLC

1st Lien Revolving Loan

12/02/2025

—

^(e)(h)

AIM Acquisition, LLC

1st Lien Term Loan

10.42% (3M SOFR + 5.00%)

12/02/2025

212

^(e)(f)

Airx Climate Solutions, Inc.

1st Lien Revolving Loan

11.58% (1M SOFR + 6.25%)

11/07/2029

^(e)(h)

Airx Climate Solutions, Inc.

1st Lien Term Loan

11.53% (3M SOFR + 6.25%)

11/07/2029

1,506

1,505

^(e)(f)

Airx Climate Solutions, Inc.

1st Lien Delay Draw Term Loan

11/07/2029

—

^(e)(h)

AllClear Military Inc.

1st Lien Term Loan

10.48% (3M SOFR + 5.00%)

08/10/2025

1,880

1,410

^(e)

Artera Services, LLC

1st Lien Term Loan

9.83% (3M SOFR + 4.50%)

02/15/2031

7,809

7,837

Barentz International B.V.

Netherlands

1st Lien Term Loan

9.41% (3M SOFR + 4.00%)

03/01/2031

5,000

5,019

BCPE Empire Holdings, Inc.

1st Lien Term Loan

9.34% (1M SOFR + 4.00%)

12/11/2028

4,988

4,985

BGIF IV Fearless Utility Services, Inc.

1st Lien Revolving Loan

06/07/2030

—

^(e)(h)

BGIF IV Fearless Utility Services, Inc.

1st Lien Term Loan

10.33% (1M SOFR + 5.00%)

06/09/2031

2,238

2,216

^(e)(f)

8	Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

BGIF IV Fearless Utility Services, Inc.

1st Lien Delay Draw Term Loan

06/09/2031

—

^(e)(h)

BlueHalo Global Holdings, LLC (f/k/a Aegis Global Holdings, LLC)

1st Lien Revolving Loan

10.09% (3M SOFR + 4.75%)

10/31/2025

372

^(e)(h)

BlueHalo Global Holdings, LLC (f/k/a Aegis Global Holdings, LLC)

1st Lien Term Loan

10.08% (3M SOFR + 4.75%)

10/31/2025

4,666

^(e)(f)

Box Bidco Limited

United Kingdom

1st Lien Term Loan

10.95% (6M EURIBOR + 7.17%)

11/24/2028

€

878

941

^(e)(f)

Box Bidco Limited

United Kingdom

1st Lien Term Loan

11.26% (6M SOFR + 5.50%)

11/24/2028

1,691

1,690

^(e)(f)

Box Bidco Limited

United Kingdom

1st Lien Term Loan

12.87% (6M SOFR + 7.42%)

11/24/2028

536

^(e)

Brown Group Holding, LLC

1st Lien Term Loan

8.19% (1M SOFR + 2.75%)

06/07/2028

10,013

9,999

Brown Group Holding, LLC

1st Lien Term Loan

8.33% (1M SOFR + 3.00%)

07/02/2029

7,251

7,242

Burgess Point Purchaser Corporation

1st Lien Term Loan

10.69% (1M SOFR + 5.25%)

07/25/2029

4,125

3,987

Chart Industries, Inc.

1st Lien Term Loan

8.68% (1M SOFR + 3.25%)

03/15/2030

6,361

6,377

Chart Industries, Inc.

1st Lien Term Loan

03/15/2030

1,285

1,288

⁽ⁱ⁾

Chillaton Bidco Limited

United Kingdom

1st Lien Term Loan

11.70% (6M SONIA + 6.50%)

05/09/2031

1,491

1,884

^(e)(g)

Chillaton Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

05/09/2031

—

^(e)(g)(h)(i)

CP Atlas Buyer Inc

1st Lien Term Loan

9.19% (1M SOFR + 3.75%)

11/23/2027

7,729

7,529

CPIG Holdco Inc.

1st Lien Revolving Loan

10.15% (3M SOFR + 4.75%)

04/28/2028

—

^(e)(h)

CPIG Holdco Inc.

1st Lien Term Loan

12.40% (3M SOFR + 7.00%)

04/28/2028

3,844

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Crown Subsea Communications Holding, Inc.

1st Lien Term Loan

10.08% (6M SOFR + 4.75%)

01/30/2031

2,527

2,529

Cube Industrials Buyer, Inc. & Cube A&D Buyer Inc.

1st Lien Revolving Loan

10/18/2029

—

^(e)(h)

Cube Industrials Buyer, Inc. & Cube A&D Buyer Inc.

1st Lien Term Loan

11.33% (3M SOFR + 6.00%)

10/18/2030

4,298

^(e)

Dynamic NC Aerospace Holdings, LLC

1st Lien Revolving Loan

11.95% (3M SOFR + 6.50%)

12/30/2025

821

^(e)(h)

Dynamic NC Aerospace Holdings, LLC

1st Lien Term Loan

11.95% (3M SOFR + 6.50%)

12/30/2026

2,689

^(e)(f)

Dynasty Acquisition Co., Inc.

1st Lien Term Loan

8.84% (1M SOFR + 3.50%)

08/24/2028

17,332

17,384

Helix Acquisition Holdings, Inc.

1st Lien Term Loan

12.43% (3M SOFR + 7.00%)

03/29/2030

473

^(e)

Husky Injection Molding Systems Ltd.

Canada

1st Lien Term Loan

10.33% (6M SOFR + 5.00%)

02/15/2029

16,000

16,027

INNIO Group Holding GmbH

Germany

1st Lien Term Loan

8.17% (3M EURIBOR + 4.25%)

11/02/2028

€

6,900

7,388

Kaman Corporation

1st Lien Term Loan

8.83% (3M SOFR + 3.50%)

04/21/2031

14,254

14,326

Kene Acquisition, Inc.

1st Lien Revolving Loan

02/07/2031

—

^(e)(h)

Kene Acquisition, Inc.

1st Lien Term Loan

10.57% (3M SOFR + 5.25%)

02/07/2031

1,797

1,761

^(e)

Kene Acquisition, Inc.

1st Lien Delay Draw Term Loan

02/07/2031

—

^(e)(h)

Kodiak BP, LLC

1st Lien Term Loan

8.85% (3M SOFR + 3.25%)

03/12/2028

5,539

5,534

Kodiak Building Partners Inc.

1st Lien Term Loan

9.08% (3M SOFR + 3.75%)

03/12/2028

3,990

4,010

LBM Acquisition LLC

1st Lien Term Loan

05/30/2031

8,108

7,964

⁽ⁱ⁾

10	Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Maverick Acquisition, Inc.

1st Lien Term Loan

11.58% (3M SOFR + 6.25%)

06/01/2027

5,213

4,223

^(e)(f)

Maverick Acquisition, Inc.

1st Lien Delay Draw Term Loan

11.58% (3M SOFR + 6.25%)

06/01/2027

1,188

963

^(e)

Osmose Utilities Services, Inc.

1st Lien Term Loan

8.71% (1M SOFR + 3.25%)

06/23/2028

17,692

17,556

Osmose Utilities Services, Inc.

2nd Lien Term Loan

12.21% (1M 06/25/2029 SOFR + 6.75%)

8,237

8,155

^(e)

Osmosis Buyer Limited

1st Lien Term Loan

8.83% (1M SOFR + 3.50%)

07/31/2028

26,640

26,672

Osmosis Buyer Limited

1st Lien Delay Draw Term Loan

9.58% (1M SOFR + 4.25%)

07/31/2028

2,526

2,528

Prime Buyer, L.L.C.

1st Lien Revolving Loan

10.68% (1M SOFR + 5.25%)

12/22/2026

199

185

^(e)(h)

Prime Buyer, L.L.C.

1st Lien Term Loan

10.69% (1M SOFR + 5.25%)

12/22/2026

13,495

12,550

^(e)(f)

Project Castle, Inc.

1st Lien Term Loan

10.80% (3M SOFR + 5.50%)

06/01/2029

2,490

2,216

Radius Aerospace Europe Limited

United Kingdom

1st Lien Revolving Loan

11.20% (1M SONIA + 6.00%)

03/29/2027

373

471

^(e)

Radius Aerospace Europe Limited

United Kingdom

1st Lien Term Loan

11.48% (3M SOFR + 6.00%)

03/29/2027

4,146

^(e)(f)

Radius Aerospace, Inc.

1st Lien Revolving Loan

11.48% (1M SOFR + 6.00%)

03/29/2027

330

^(e)(h)

Radius Aerospace, Inc.

1st Lien Term Loan

11.48% (3M SOFR + 6.00%)

03/29/2027

5,205

^(e)(f)

Sigma Electric Manufacturing Corporation

1st Lien Revolving Loan

10/31/2025

—

^(e)(h)

Sigma Electric Manufacturing Corporation

1st Lien Term Loan

11.23% (3M SOFR + 5.75%)

10/31/2025

444

^(e)(f)

Specialty Building Products Holdings, LLC

1st Lien Term Loan

9.19% (1M SOFR + 3.75%)

10/15/2028

7,981

7,930

SPX Flow, Inc.

1st Lien Term Loan

8.84% (1M SOFR + 3.50%)

04/05/2029

4,402

4,426

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Sunk Rock Foundry Partners LP

1st Lien Term Loan

11.23% (3M SOFR + 5.75%)

10/31/2025

219

^(e)(f)

Sunvair Aerospace Group, Inc.

1st Lien Revolving Loan

05/30/2031

—

^(e)(h)

Sunvair Aerospace Group, Inc.

1st Lien Term Loan

10.35% (6M SOFR + 5.00%)

05/30/2031

1,778

1,751

^(e)(f)

Sunvair Aerospace Group, Inc.

1st Lien Delay Draw Term Loan

05/30/2031

—

^(e)(h)

TransDigm Inc.

1st Lien Term Loan

8.08% (3M SOFR + 2.75%)

03/22/2030

12,242

12,262

TransDigm Inc.

1st Lien Term Loan

7.84% (3M SOFR + 2.50%)

02/28/2031

17,808

17,844

Two Six Labs, LLC

1st Lien Revolving Loan

08/20/2027

—

^(e)(h)

Two Six Labs, LLC

1st Lien Term Loan

10.58% (3M SOFR + 5.25%)

08/20/2027

7,261

7,262

^(e)(f)

Two Six Labs, LLC

1st Lien Term Loan

11.33% (3M SOFR + 6.00%)

08/20/2027

1,331

^(e)

Two Six Labs, LLC

1st Lien Delay Draw Term Loan

10.58% (3M SOFR + 5.25%)

08/20/2027

2,824

^(e)(h)

Victory Buyer LLC

1st Lien Term Loan

9.34% (3M SOFR + 3.75%)

11/19/2028

5,266

5,047

WEC US Holdings Ltd.

1st Lien Term Loan

8.09% (1M SOFR + 2.75%)

01/27/2031

27,560

27,566

White Cap Supply Holdings, LLC

1st Lien Term Loan

10/19/2029

2,500

2,503

⁽ⁱ⁾

Wilsonart LLC

1st Lien Term Loan

8.68% (3M SOFR + 3.25%)

12/31/2026

17,546

17,543

352,958

9.17

Commercial and Professional Services

Aero Operating LLC

1st Lien Term Loan

14.45% (3M SOFR + 9.00%)

02/09/2026

2,965

2,521

^(e)(f)

Aero Operating LLC

1st Lien Delay Draw Term Loan

14.45% (3M SOFR + 9.00%)

02/09/2026

804

683

^(e)(f)

12	Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

AMCP Clean Acquisition Company, LLC

1st Lien Term Loan

10.35% (6M SOFR + 5.00%)

06/15/2028

808

796

^(e)(f)

Applied Technical Services, LLC

1st Lien Revolving Loan

13.25% (PRIME + 4.75%)

12/29/2026

546

^(e)(h)

Applied Technical Services, LLC

1st Lien Term Loan

11.23% (3M SOFR + 5.75%)

12/29/2026

4,513

^(e)(f)

Applied Technical Services, LLC

1st Lien Term Loan

11.48% (3M SOFR + 6.00%)

12/29/2026

569

568

^(e)

Applied Technical Services, LLC

1st Lien Delay Draw Term Loan

11.23% (3M SOFR + 5.75%)

12/29/2026

6,517

^(e)(f)(h)

Applied Technical Services, LLC

1st Lien Delay Draw Term Loan

11.48% (3M SOFR + 6.00%)

12/29/2026

570

^(e)

Armorica Lux S.a.r.l.

Luxembourg

1st Lien Term Loan

8.79% (3M EURIBOR + 4.93%)

07/28/2028

€

6,500

6,630

Auxadi Midco S.L.U.

Spain

1st Lien Term Loan

8.65% (3M EURIBOR + 4.75%)

07/17/2028

€

473

506

^(e)(g)

Capstone Acquisition Holdings, Inc.

1st Lien Revolving Loan

11/12/2025

—

^(e)(h)

Capstone Acquisition Holdings, Inc.

1st Lien Term Loan

10.19% (1M SOFR + 4.75%)

11/12/2027

10,677

^(e)(f)

Capstone Acquisition Holdings, Inc.

1st Lien Delay Draw Term Loan

10.19% (1M SOFR + 4.75%)

11/12/2027

626

^(e)

Capstone Acquisition Holdings, Inc.

2nd Lien Term Loan

14.19% (1M SOFR + 8.75%)

11/13/2028

3,008

^(e)(f)

Compass Bidco United Limited.

Kingdom

1st Lien Term Loan

11.74% (3M SONIA + 6.50%)

04/15/2031

12,356

15,619

^(e)(g)

Compass Bidco United Limited.

Kingdom

1st Lien Delay Draw Term Loan

13.00% (6M SONIA + 6.50%)

04/15/2031

2,098

2,652

^(e)(g)(h)

Compex Legal Services, Inc.

1st Lien Revolving Loan

10.85% (3M SOFR + 5.45%)

02/07/2025

630

^(e)(h)

Compex Legal Services, Inc.

1st Lien Term Loan

10.88% (3M SOFR + 5.45%)

02/09/2026

1,264

^(e)(f)

Dispatch Acquisition Holdings, LLC

1st Lien Term Loan

9.73% (3M SOFR + 4.25%)

03/27/2028

14,717

12,565

^(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Dun & Bradstreet Corporation, The

1st Lien Term Loan

8.10% (1M SOFR + 2.75%)

01/18/2029

16,101

DuraServ LLC

1st Lien Revolving Loan

06/10/2030

—

^(e)(h)

DuraServ LLC

1st Lien Term Loan

10.08% (1M SOFR + 4.75%)

06/10/2031

594

588

^(e)(f)

DuraServ LLC

1st Lien Delay Draw Term Loan

06/10/2031

—

^(e)(h)

Eagle Parent Corp.

1st Lien Term Loan

9.58% (3M SOFR + 4.25%)

04/02/2029

7,286

7,071

Elevation Services Parent Holdings, LLC

1st Lien Revolving Loan

11.48% (3M SOFR + 6.00%)

12/18/2026

303

296

^(e)(h)

Elevation Services Parent Holdings, LLC

1st Lien Term Loan

11.46% (3M SOFR + 6.00%)

12/18/2026

1,924

1,886

^(e)(f)

Elevation Services Parent Holdings, LLC

1st Lien Delay Draw Term Loan

11.48% (3M SOFR + 6.00%)

12/18/2026

1,746

1,711

^(e)(f)

Elevation Services Parent Holdings, LLC

1st Lien Delay Draw Term Loan

11.50% (3M SOFR + 6.00%)

12/18/2026

372

365

^(e)

Erasmus Acquisition Holding B.V.

Netherlands

1st Lien Term Loan

7.50% (6M EURIBOR + 7.25%)

03/13/2030

€

3,323

3,559

^(e)(g)

Erasmus Acquisition Holding B.V.

Netherlands

1st Lien Delay Draw Term Loan

10.92% (6M EURIBOR + 7.25%)

03/13/2030

€

222

238

^(e)(g)(h)

Flywheel Acquireco, Inc.

1st Lien Revolving Loan

11.84% (1M SOFR + 6.50%)

05/12/2028

1,110

1,109

^(e)(h)

Flywheel Acquireco, Inc.

1st Lien Term Loan

11.84% (1M SOFR + 6.50%)

05/13/2030

13,714

^(e)

HH-Stella, Inc.

1st Lien Revolving Loan

11.45% (1M SOFR + 6.00%)

04/22/2027

127

^(e)(h)

HH-Stella, Inc.

1st Lien Term Loan

11.48% (3M SOFR + 6.00%)

04/24/2028

6,000

^(e)(f)

HH-Stella, Inc.

1st Lien Delay Draw Term Loan

11.48% (3M SOFR + 6.00%)

04/24/2028

2,531

^(e)(h)

The Hiller Companies, LLC

1st Lien Revolving Loan

10.34% (3M SOFR + 5.00%)

06/20/2030

^(e)(h)

14	Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

The Hiller Companies, LLC

1st Lien Term Loan

10.34% (3M SOFR + 5.00%)

06/20/2030

3,806

3,768

^(e)(f)(g)

The Hiller Companies, LLC

1st Lien Delay Draw Term Loan

06/20/2030

—

^(e)(g)(h)

HP RSS Buyer, Inc.

1st Lien Term Loan

10.33% (3M SOFR + 5.00%)

12/11/2029

1,262

^(e)(f)

HP RSS Buyer, Inc.

1st Lien Delay Draw Term Loan

10.33% (3M SOFR + 5.00%)

12/11/2029

270

^(e)(f)

HP RSS Buyer, Inc.

1st Lien Delay Draw Term Loan

10.35% (3M SOFR + 5.00%)

12/11/2029

812

^(e)

HP RSS Buyer, Inc.

1st Lien Delay Draw Term Loan

10.10% (3M SOFR + 4.75%)

12/11/2029

^(e)(h)

Integrated Power Services Holdings, Inc.

2nd Lien Term Loan

12.94% (1M SOFR + 7.50%)

11/23/2029

4,983

^(e)

IRI Group Holdings, Inc.

1st Lien Revolving Loan

10.34% (1M SOFR + 5.00%)

12/21/2027

944

^(e)(h)

IRI Group Holdings, Inc.

1st Lien Term Loan

10.85% (3M SOFR + 5.50%)

12/21/2028

25,102

^(e)(f)(g)

Ishtar Bidco Norway AS

United Kingdom

1st Lien Delay Draw Term Loan

17.30% (6M SONIA + 11.75%)

11/26/2025

794

823

^(e)(f)

Kellermeyer Bergensons Services, LLC

1st Lien Term Loan

13.48% (3M SOFR + 8.00%)

11/06/2028

2,886

^(e)(g)

Kellermeyer Bergensons Services, LLC

1st Lien Term Loan

10.73% (6M SOFR + 5.25%)

11/06/2028

6,596

^(e)(g)

Kellermeyer Bergensons Services, LLC

1st Lien Delay Draw Term Loan

11/06/2028

—

^(e)(g)(h)

Kings Buyer, LLC

1st Lien Revolving Loan

12.50% (PRIME + 4.00%)

10/29/2027

^(e)(h)

Kings Buyer, LLC

1st Lien Term Loan

10.43% (3M SOFR + 5.00%)

10/29/2027

3,419

^(e)

LABL, Inc.

1st Lien Term Loan

10.44% (1M SOFR + 5.00%)

10/29/2028

7,677

7,570

Laboratories Bidco LLC

1st Lien Revolving Loan

14.25% (3M PRIME + 5.75%)

07/23/2027

1,467

1,232

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Laboratories Bidco LLC

1st Lien Term Loan

12.23% (3M SOFR + 6.75%)

07/23/2027

1,886

1,584

^(e)(f)(g)

Laboratories Bidco LLC

1st Lien Term Loan

10.43% (3M CDOR + 2.75%)

07/23/2027

CAD

1,768

1,086

^(e)(f)

Laboratories Bidco LLC

1st Lien Term Loan

12.23% (3M SOFR + 6.75%)

07/23/2027

7,901

6,637

^(e)(f)

Laboratories Bidco LLC

1st Lien Delay Draw Term Loan

12.23% (3M SOFR + 6.75%)

07/23/2027

290

244

^(e)

Lavatio Midco Sarl

Luxembourg

1st Lien Delay Draw Term Loan

10.67% (6M EURIBOR + 7.00%)

11/30/2026

€

1,684

1,804

^(e)(f)

Lightbeam Bidco, Inc.

1st Lien Revolving Loan

05/04/2029

—

^(e)(h)

Lightbeam Bidco, Inc.

1st Lien Term Loan

10.33% (3M SOFR + 5.00%)

05/06/2030

1,260

^(e)(f)

Lightbeam Bidco, Inc.

1st Lien Delay Draw Term Loan

10.33% (3M SOFR + 5.00%)

05/06/2030

435

434

^(e)(h)

Lowe P27 Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

6.93% (6M SOFR + 6.50%)

07/31/2026

610

^(e)

Lowe P27 Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.11% (6M SONIA + 6.50%)

07/31/2026

1,706

2,156

^(e)

Lowe P27 Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.09% (6M SONIA + 6.50%)

07/31/2026

462

584

^(e)(h)

Lowe P27 Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

10.62% (6M EURIBOR + 6.75%)

07/31/2026

1,183

1,495

^(e)(h)

Marmic Purchaser, LLC

1st Lien Revolving Loan

11.23% (3M SOFR + 5.75%)

03/05/2027

201

^(e)(h)

Marmic Purchaser, LLC

1st Lien Term Loan

11.23% (3M SOFR + 5.75%)

03/05/2027

1,996

^(e)(f)

Marmic Purchaser, LLC

1st Lien Delay Draw Term Loan

11.23% (3M SOFR + 5.75%)

03/05/2027

2,006

^(e)

Marmic Purchaser, LLC

1st Lien Delay Draw Term Loan

11.73% (3M SOFR + 6.25%)

03/05/2027

1,686

^(e)

Marmic Purchaser, LLC

1st Lien Delay Draw Term Loan

10.74% (3M SOFR + 5.25%)

03/05/2027

^(e)(h)

16	Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

MPLC Debtco Limited

Jersey

1st Lien Term Loan

11.61% (3M SONIA + 6.25%)

01/07/2027

148

188

^(e)(f)

MPLC Debtco Limited

Jersey

1st Lien Delay Draw Term Loan

11.99% (6M SOFR + 6.25%)

01/07/2027

2,100

^(e)(f)

MPLC Debtco Limited

Jersey

1st Lien Delay Draw Term Loan

11.77% (6M SONIA + 6.25%)

01/07/2027

1,052

1,329

^(e)(f)

Neptune BidCo US Inc.

1st Lien Revolving Loan

10/11/2027

—

^(e)(h)

Neptune BidCo US Inc.

1st Lien Term Loan

10.16% (3M SOFR + 4.75%)

10/11/2028

13,178

12,348

^(f)

Neptune BidCo US Inc.

1st Lien Term Loan

10.41% (3M SOFR + 5.00%)

04/11/2029

15,244

14,323

^(f)

Neptune BidCo US Inc.

2nd Lien Term Loan

15.16% (3M SOFR + 9.75%)

10/11/2029

9,882

9,783

^(e)(f)

Nest Topco Borrower Inc.

1st Lien Term Loan

16.00% (PRIME + 7.50%)

08/31/2029

13,162

13,161

^(e)(g)

North American Fire Holdings, LLC

1st Lien Revolving Loan

11.23% (3M SOFR + 5.75%)

05/19/2027

257

^(e)(h)

North American Fire Holdings, LLC

1st Lien Term Loan

11.23% (3M SOFR + 5.75%)

05/19/2027

2,269

^(e)(f)

North American Fire Holdings, LLC

1st Lien Delay Draw Term Loan

11.23% (3M SOFR + 5.75%)

05/19/2027

4,983

^(e)(f)

North Haven Fairway Buyer, LLC

1st Lien Revolving Loan

14.00% (1M PRIME + 5.50%)

05/17/2028

^(e)(h)

North Haven Fairway Buyer, LLC

1st Lien Term Loan

11.83% (3M SOFR + 6.50%)

05/17/2028

^(e)

North Haven Fairway Buyer, LLC

1st Lien Delay Draw Term Loan

11.82% (3M SOFR + 6.50%)

05/17/2028

184

185

^(e)(h)

North Haven Stack Buyer, LLC

1st Lien Revolving Loan

10.57% (1M SOFR + 5.25%)

07/16/2027

^(e)(h)

North Haven Stack Buyer, LLC

1st Lien Term Loan

10.58% (3M SOFR + 5.25%)

07/16/2027

1,300

^(e)(f)

North Haven Stack Buyer, LLC

1st Lien Term Loan

10.33% (6M SOFR + 5.00%)

07/16/2027

220

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

North Haven Stack Buyer, LLC

1st Lien Delay Draw Term Loan

10.58% (3M SOFR + 5.25%)

07/16/2027

1,404

^(e)

North Haven Stack Buyer, LLC

1st Lien Delay Draw Term Loan

10.50% (3M SOFR + 5.00%)

07/16/2027

123

^(e)(h)

Orbit Private Holdings I Ltd

United Kingdom

1st Lien Term Loan

10.95% (6M SONIA + 5.75%)

12/11/2028

4,915

6,104

^(e)

Priority Waste Holdings LLC

1st Lien Revolving Loan

10.80% (3M SOFR + 5.50%)

08/20/2029

^(e)(h)

Priority Waste Holdings LLC

1st Lien Term Loan

13.30% (3M SOFR + 8.00%)

08/20/2029

1,825

^(e)(g)

Priority Waste Holdings LLC

1st Lien Term Loan

13.33% (6M SOFR + 8.00%)

08/20/2029

3,312

3,040

^(e)(f)(g)

Priority Waste Holdings LLC

1st Lien Delay Draw Term Loan

13.30% (3M SOFR + 8.00%)

08/20/2029

1,953

1,954

^(e)(g)

PSC Parent, Inc.

1st Lien Revolving Loan

10.58% (1M SOFR + 5.25%)

04/03/2030

126

124

^(e)(h)

PSC Parent, Inc.

1st Lien Revolving Loan

04/03/2031

—

^(e)(h)

PSC Parent, Inc.

1st Lien Term Loan

10.58% (1M SOFR + 5.25%)

04/03/2031

4,437

4,393

^(e)(f)

PSC Parent, Inc.

1st Lien Delay Draw Term Loan

04/03/2031

—

^(e)(h)

Pye-Barker Fire & Safety, LLC

1st Lien Revolving Loan

9.85% (1M SOFR + 4.50%)

05/24/2030

^(e)(h)

Pye-Barker Fire & Safety, LLC

1st Lien Term Loan

9.85% (1M SOFR + 4.50%)

06/13/2031

629

^(e)(f)

Pye-Barker Fire & Safety, LLC

1st Lien Delay Draw Term Loan

9.83% (1M SOFR + 4.50%)

05/26/2031

747

^(e)(h)

Registrar Intermediate, LLC

1st Lien Revolving Loan

10.43% (1M SOFR + 5.00%)

08/26/2027

217

214

^(e)(h)

Registrar Intermediate, LLC

1st Lien Term Loan

10.57% (3M SOFR + 5.00%)

08/26/2027

4,083

4,043

^(e)(f)

Research Now Group, LLC

1st Lien Term Loan

12/20/2024

3,474

2,578

^(f)(j)

Research Now Group, LLC

2nd Lien Term Loan

12/20/2025

893

^(e)(f)(j)

18	Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Rodeo AcquisitionCo LLC

1st Lien Revolving Loan

11.49% (3M SOFR + 6.00%)

07/26/2027

215

^(e)(h)

Rodeo AcquisitionCo LLC

1st Lien Term Loan

11.49% (3M SOFR + 6.00%)

07/26/2027

2,065

^(e)

RSK Group Limited

United Kingdom

1st Lien Term Loan

10.22% (6M SONIA + 4.88%)

08/07/2028

3,405

4,304

^(e)(f)(g)

RSK Group Limited

United Kingdom

1st Lien Delay Draw Term Loan

10.19% (3M SONIA + 4.88%)

08/07/2028

8,248

10,426

^(e)(f)(g)

RSK Group Limited

United Kingdom

1st Lien Delay Draw Term Loan

8.60% (3M EURIBOR + 4.88%)

08/07/2028

€

1,033

1,106

^(e)(f)(g)

RSK Group Limited

United Kingdom

1st Lien Delay Draw Term Loan

10.22% (3M SONIA + 4.88%)

08/07/2028

13,314

16,830

^(e)(g)

RSK Group Limited

United Kingdom

1st Lien Delay Draw Term Loan

10.25% (3M SONIA + 4.88%)

08/07/2028

4,192

5,299

^(e)(g)(h)

Saturn Purchaser Corp.

1st Lien Term Loan

10.53% (6M SOFR + 5.25%)

07/23/2029

233

^(e)

Schill Landscaping and Lawn Care Services, LLC

1st Lien Revolving Loan

11.19% (1M SOFR + 5.75%)

12/16/2027

324

^(e)(h)

Schill Landscaping and Lawn Care Services, LLC

1st Lien Term Loan

11.19% (1M SOFR + 5.75%)

12/16/2027

2,162

^(e)(f)

Schill Landscaping and Lawn Care Services, LLC

1st Lien Delay Draw Term Loan

11.19% (1M SOFR + 5.75%)

12/16/2027

1,496

^(e)(h)

Shermco Intermediate Holdings, Inc.

1st Lien Revolving Loan

10.59 (1M SOFR + 5.25)

06/05/2026

800

^(e)(h)

Shermco Intermediate Holdings, Inc.

1st Lien Term Loan

10.59 (1M SOFR + 5.25)

06/05/2026

30,849

^(e)(f)

Shermco Intermediate Holdings, Inc.

1st Lien Delay Draw Term Loan

10.59% (1M SOFR + 5.25%)

06/05/2026

^(e)(h)

Stealth Holding LLC

1st Lien Term Loan

12.20% (3M SOFR + 6.75%)

03/02/2026

2,417

^(e)(f)

Stealth Holding LLC

1st Lien Term Loan

12.18% (6M SOFR + 6.75%)

03/02/2026

245

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Stealth Holding LLC

1st Lien Delay Draw Term Loan

12.21% (3M SOFR + 6.75%)

03/02/2026

4,146

^(e)

Survitec Group Holdco Limited

United Kingdom

1st Lien Term Loan

13.37% (6M SONIA + 7.50%)

04/06/2027

10,037

12,308

^(e)(f)(g)

Survitec Group Holdco Limited

United Kingdom

1st Lien Term Loan

13.94% (6M SONIA + 8.38%)

04/06/2027

501

614

^(e)

SV Newco 2, Inc.

1st Lien Revolving Loan

06/02/2031

—

^(e)(h)

SV Newco 2, Inc.

1st Lien Term Loan

10.10% (3M SOFR + 4.75%)

06/02/2031

1,019

1,004

^(e)(f)

SV Newco 2, Inc.

1st Lien Delay Draw Term Loan

06/02/2031

—

^(e)(h)

Systems Planning and Analysis, Inc.

1st Lien Revolving Loan

08/16/2027

—

^(e)(h)

Systems Planning and Analysis, Inc.

1st Lien Term Loan

11.16% (3M SOFR + 5.75%)

08/16/2027

4,421

^(e)(f)

Thermostat Purchaser III, Inc.

1st Lien Revolving Loan

08/31/2028

—

^(e)(h)

Thermostat Purchaser III, Inc.

2nd Lien Term Loan

12.74% (3M SOFR + 7.25%)

08/31/2029

3,577

^(e)

TSS Buyer, LLC

1st Lien Term Loan

10.98% (3M SOFR + 5.50%)

06/22/2029

259

^(e)

TSS Buyer, LLC

1st Lien Delay Draw Term Loan

10.83% (3M SOFR + 5.50%)

06/22/2029

177

^(e)(h)

UCIT Online Security Inc.

Canada

1st Lien Term Loan

12.20% (3M SOFR + 6.75%)

03/02/2026

1,611

^(e)(f)

Unifi Aviation North America, LLC

1st Lien Revolving Loan

8.20% (3M SOFR + 2.75%)

09/29/2028

—

^(e)(h)

Unifi Aviation North America, LLC

1st Lien Term Loan

10.70% (3M SOFR + 5.25%)

09/29/2028

2,026

1,996

^(e)

Unifi Aviation North America, LLC

1st Lien Delay Draw Term Loan

09/29/2028

—

^(e)(h)

UP Intermediate II LLC

1st Lien Revolving Loan

03/14/2030

—

^(e)(h)

20	Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

UP Intermediate II LLC

1st Lien Term Loan

10.58% (3M SOFR + 5.25%)

03/14/2031

373

364

^(e)(f)

Villa Dutch Bidco B.V.

Netherlands

1st Lien Term Loan

8.83% (6M EURIBOR + 5.00%)

11/03/2029

€

6,000

6,417

Visual Edge Technology, Inc.

1st Lien Term Loan

12.48% (3M SOFR + 7.00%)

12/31/2025

2,205

^(e)(g)

Visual Edge Technology, Inc.

1st Lien Delay Draw Term Loan

12/31/2025

—

^(e)(g)(h)

VRC Companies, LLC

1st Lien Revolving Loan

06/29/2027

—

^(e)(h)

VRC Companies, LLC

1st Lien Term Loan

11.09% (3M SOFR + 5.50%)

06/29/2027

16,447

16,283

^(e)(f)

W.S. Connelly & Co., LLC

1st Lien Revolving Loan

9.33% (3M SOFR + 4.00%)

05/24/2030

762

747

^(e)(h)

W.S. Connelly & Co., LLC

1st Lien Term Loan

10.58% (3M SOFR + 5.25%)

05/24/2030

601

589

^(e)(f)

W.S. Connelly & Co., LLC

1st Lien Delay Draw Term Loan

05/24/2030

—

^(e)(h)

Waste Services Finco Pty Ltd

Australia

1st Lien Term Loan

9.98% (1M BBSW + 5.63%)

12/23/2027

AUD

11,142

7,433

^(e)(f)

Waste Services Finco Pty Ltd

Australia

1st Lien Delay Draw Term Loan

10.06% (6M BBSW + 5.63%)

12/23/2027

AUD

1,337

892

^(e)

Xplor T1, LLC

1st Lien Term Loan

9.60% (3M SOFR + 4.25%)

06/14/2031

3,675

3,666

^(e)

447,229

11.62

Consumer Discretionary Distribution and Retail

Bamboo Purchaser, Inc.

1st Lien Revolving Loan

8.20% (1M SOFR + 2.75%)

11/05/2026

^(e)(h)

Bamboo Purchaser, Inc.

1st Lien Term Loan

11.98% (3M SOFR + 6.50%)

11/05/2027

3,465

3,257

^(e)(f)

Bamboo Purchaser, Inc.

1st Lien Delay Draw Term Loan

11.98% (3M SOFR + 6.50%)

11/05/2027

817

768

^(e)

BradyIFS Holdings, LLC

1st Lien Revolving Loan

10/31/2029

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Shares

Amount^(a)

Value^(a)

Assets

BradyIFS Holdings, LLC

1st Lien Term Loan

11.33% (3M SOFR + 6.00%)

10/31/2029

18,155

^(e)(f)

BradyIFS Holdings, LLC

1st Lien Delay Draw Term Loan

11.33% (3M SOFR + 6.00%)

10/31/2029

1,242

^(e)(h)

Harbor Freight Tools USA, Inc.

1st Lien Term Loan

06/11/2031

4,067

4,053

⁽ⁱ⁾

Hills Distribution, Inc.

1st Lien Revolving Loan

9.83% (1M SOFR + 4.50%)

11/08/2029

^(e)(h)

Hills Distribution, Inc.

1st Lien Term Loan

11.33% (1M SOFR + 6.00%)

11/08/2029

531

^(e)(f)

Hills Distribution, Inc.

1st Lien Delay Draw Term Loan

11/08/2029

—

^(e)(h)

LS Group Opco Acquisition LLC (LS Group PropCo Acquisition LLC)

1st Lien Term Loan

8.34% (1M SOFR + 3.00%)

04/23/2031

1,313

1,312

Marcone Yellowstone Buyer Inc.

1st Lien Term Loan

11.73% (3M SOFR + 6.25%)

06/23/2028

10,625

9,881

^(e)(f)

Marcone Yellowstone Buyer Inc.

1st Lien Delay Draw Term Loan

11.73% (3M SOFR + 6.25%)

06/23/2028

3,505

3,260

^(e)

Mavis Tire Express Services Topco, Corp.

1st Lien Revolving Loan

05/04/2026

—

^(e)(h)

Mavis Tire Express Services Topco, Corp.

1st Lien Term Loan

9.09% (1M SOFR + 3.75%)

05/04/2028

34,912

34,956

Peer Holding III B.V.

Netherlands

1st Lien Term Loan

06/20/2031

5,000

5,002

⁽ⁱ⁾

Phoenix YW Buyer, Inc.

1st Lien Revolving Loan

05/31/2030

—

^(e)(h)

Phoenix YW Buyer, Inc.

1st Lien Term Loan

10.35% (6M SOFR + 5.00%)

05/31/2030

6,232

6,107

^(e)(f)

Reddy Ice LLC

1st Lien Revolving Loan

10.08% (1M SOFR + 4.75%)

04/23/2029

1,186

1,168

^(e)(h)

Reddy Ice LLC

1st Lien Term Loan

10.07% (3M SOFR + 4.75%)

04/23/2029

38,720

38,139

^(e)(f)

Reddy Ice LLC

1st Lien Delay Draw Term Loan

10.08% (1M SOFR + 4.75%)

04/23/2029

513

509

^(e)(h)

22	Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Saldon Holdings, Inc.

1st Lien Revolving Loan

03/13/2026

—

^(e)(h)

Saldon Holdings, Inc.

1st Lien Term Loan

11.44% (1M SOFR + 6.00%)

03/13/2026

8,027

^(e)(f)

Saldon Holdings, Inc.

1st Lien Delay Draw Term Loan

03/13/2026

—

^(e)(h)

SCIH Salt Holdings Inc.

1st Lien Term Loan

8.83% (3M SOFR + 3.50%)

03/16/2027

20,186

Trader Corporation

Canada

1st Lien Revolving Loan

12/22/2028

CAD

—

^(e)(h)

Trader Corporation

Canada

1st Lien Term Loan

11.74% (1M CDOR + 6.75%)

12/21/2029

230

168

^(e)

Trader Corporation

Canada

1st Lien Term Loan

10.28% (1M CDOR + 5.50%)

12/21/2029

CAD

2,163

1,581

^(e)(f)

US Salt Investors, LLC

1st Lien Revolving Loan

07/20/2026

—

^(e)(h)

US Salt Investors, LLC

1st Lien Term Loan

10.73% (3M SOFR + 5.25%)

07/19/2028

5,877

^(e)(f)

Wrench Group LLC

1st Lien Term Loan

9.60% (3M SOFR + 4.00%)

10/30/2028

4,988

169,169

4.39

Consumer Durables and Apparel

Centric Brands LLC

1st Lien Term Loan

10.84% (3M SOFR + 5.50%)

08/06/2029

964

^(e)

Centric Brands TopCo, LLC

1st Lien Term Loan

13.34% (3M SOFR + 8.00%)

02/06/2031

1,874

^(e)(g)

DRS Holdings III, Inc.

1st Lien Revolving Loan

11/01/2025

—

^(e)(h)

DRS Holdings III, Inc.

1st Lien Term Loan

11.73% (3M SOFR + 6.25%)

11/01/2025

14,170

13,886

^(e)(f)

Rawlings Sporting Goods Company, Inc.

1st Lien Revolving Loan

9.18% (1M SOFR + 3.75%)

12/31/2025

^(e)(h)

Rawlings Sporting Goods Company, Inc.

1st Lien Term Loan

11.73% (3M SOFR + 6.25%)

12/31/2026

5,476

5,477

^(e)(f)(g)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Shares

Amount^(a)

Value^(a)

Assets

Rawlings Sporting Goods Company, Inc.

1st Lien Term Loan

11.73% (3M SOFR + 6.25%)

12/31/2026

1,083

^(e)(f)

Rawlings Sporting Goods Company, Inc.

1st Lien Term Loan

11.72% (3M SOFR + 6.25%)

12/31/2026

790

^(e)

24,075

0.63

Consumer Services

1011778 B.C. Unlimited Liability Company (New Red Finance, Inc.)(aka Burger King/Tim Hortons)

Canada

1st Lien Delay Draw Term Loan

09/20/2030

10,637

10,599

^(h)(i)

Aimbridge Acquisition Co., Inc.

2nd Lien Term Loan

12.94% (1M SOFR + 7.50%)

02/01/2027

4,788

4,740

^(e)(f)

American Residential Services L.L.C.

1st Lien Revolving Loan

11.00% (3M PRIME + 2.50%)

10/15/2025

—

^(e)(h)

American Residential Services L.L.C.

2nd Lien Term Loan

13.96% (1M SOFR + 8.50%)

10/16/2028

8,314

^(e)

Apex Service Partners, LLC

1st Lien Revolving Loan

11.84% (3M SOFR + 6.50%)

10/24/2029

952

^(e)(g)(h)

Apex Service Partners, LLC

1st Lien Term Loan

12.33% (3M SOFR + 7.00%)

10/24/2030

24,056

^(e)(g)

Apex Service Partners, LLC

1st Lien Delay Draw Term Loan

12.33% (3M SOFR + 7.00%)

10/24/2030

5,133

^(e)(g)(h)

ASP Dream Acquisition Co LLC

1st Lien Term Loan

9.69% (1M SOFR + 4.25%)

12/15/2028

6,010

^(e)(f)

Aspris Bidco Limited

United Kingdom

1st Lien Term Loan

12.02% (6M SONIA + 6.50%)

08/23/2028

3,234

4,088

^(e)(f)

Aspris Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

11.98% (6M SONIA + 6.50%)

08/23/2028

1,406

1,778

^(e)

Aspris Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.34% (3M SONIA + 7.00%)

02/08/2030

462

585

^(e)(h)

Belfor Holdings, Inc.

1st Lien Term Loan

9.09% (1M SOFR + 3.75%)

11/01/2030

3,425

3,443

24	Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country(a)

Investment

Interest

Date

Amount(a)

Value(a)

Assets

Bulldog Purchaser Inc.

1st Lien Term Loan

06/13/2031

3,102

3,113

⁽ⁱ⁾

Caesars Entertainment Inc

1st Lien Term Loan

8.10% (3M SOFR + 2.75%)

02/06/2031

7,000

6,993

Carspect Group AB

Sweden

1st Lien Delay Draw Term Loan

10.29% (6M STIBOR + 6.50%)

08/18/2025

9,881

932

^(e)(f)

CC Fly Holding II A/S

Denmark

1st Lien Term Loan

14.67% (3M NIBOR + 9.95%)

05/09/2025

DKK

717

^(e)(f)

CC Fly Holding II A/S

Denmark

1st Lien Delay Draw Term Loan

14.66% (3M NIBOR + 9.94%)

05/09/2025

DKK

3,403

454

^(e)(f)

CC Fly Holding II A/S

Denmark

1st Lien Delay Draw Term Loan

15.34% (3M CIBOR + 9.49%)

05/09/2025

DKK

4,053

541

^(e)(f)

CC Fly Holding II A/S

Denmark

1st Lien Delay Draw Term Loan

11.35% (3M CIBOR + 7.50%)

05/09/2025

1,411

189

^(e)(f)

Century De Buyer LLC

1st Lien Term Loan

9.33% (3M SOFR + 4.00%)

10/30/2030

6,474

Clarion Home Services Group, LLC

1st Lien Revolving Loan

11.42% (3M SOFR + 6.00%)

12/06/2027

^(e)(h)

Clarion Home Services Group, LLC

1st Lien Term Loan

13.43% (3M SOFR + 8.00%)

12/06/2027

2,379

2,165

^(e)(f)(g)

Clarion Home Services Group, LLC

1st Lien Delay Draw Term Loan

13.42% (3M SOFR + 8.00%)

12/06/2027

1,354

1,232

^(e)(g)

Clarion Home Services Group, LLC

1st Lien Delay Draw Term Loan

13.68% (3M SOFR + 8.25%)

12/06/2027

245

223

^(e)(g)(h)

ClubCorp Holdings, Inc.

1st Lien Term Loan

10.60% (3M SOFR + 5.00%)

09/18/2026

5,943

5,966

CMG HoldCo, LLC

1st Lien Revolving Loan

10.08% (3M SOFR + 4.75%)

05/19/2028

388

^(e)(h)

CMG HoldCo, LLC

1st Lien Term Loan

10.08% (3M SOFR + 4.75%)

05/19/2028

711

^(e)(f)

CMG HoldCo, LLC

1st Lien Delay Draw Term Loan

10.08% (3M SOFR + 4.75%)

05/19/2028

1,694

1,693

^(e)(h)

CST Holding Company

1st Lien Revolving Loan

10.44% (1M SOFR + 5.00%)

11/01/2028

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

CST Holding Company

1st Lien Term Loan

10.44% (1M SOFR + 5.00%)

11/01/2028

1,063

^(e)

ECG Bidco S.A.S.

France

1st Lien Term Loan

12.32% (3M SONIA + 7.00%)

10/02/2028

9,567

12,094

^(e)(f)

ECG Bidco S.A.S.

France

1st Lien Term Loan

10.94% (3M EURIBOR + 7.00%)

10/02/2028

€

6,010

6,436

^(e)(f)

ECG Bidco S.A.S.

France

1st Lien Delay Draw Term Loan

10/02/2028

€

—

^(e)(f)(h)

ECG Bidco S.A.S.

France

1st Lien Delay Draw Term Loan

02/01/2030

€

—

^(e)(g)(h)

ECG Bidco S.A.S.

France

1st Lien Delay Draw Term Loan

10.72% (3M EURIBOR + 7.00%)

02/01/2030

€

17,736

18,994

^(e)(g)

Equinox Holdings, Inc.

1st Lien Term Loan

13.58% (3M SOFR + 8.25%)

03/08/2029

41,747

40,703

^(e)(f)(g)

Equinox Holdings, Inc.

2nd Lien Term Loan

16.00%

06/30/2027

3,512

3,407

^(e)(g)

Essential Services Holding Corporation

1st Lien Revolving Loan

11/17/2025

—

^(e)(h)

Essential Services Holding Corporation

1st Lien Revolving Loan

06/17/2030

—

^(e)(h)

Essential Services Holding Corporation

1st Lien Term Loan

10.33% (1M SOFR + 5.00%)

06/17/2031

21,311

21,098

^(e)(f)(g)

Essential Services Holding Corporation

1st Lien Delay Draw Term Loan

06/17/2031

—

^(e)(g)(h)

Eternal Aus Bidco Pty Ltd

Australia

1st Lien Term Loan

10.64% (3M BBSY + 6.25%)

11/23/2029

AUD

1,834

1,224

^(e)(g)

Eternal Aus Bidco Pty Ltd

Australia

1st Lien Delay Draw Term Loan

11/23/2029

AUD

—

^(e)(g)(h)

EuroParcs Topholding B.V.

Netherlands

1st Lien Term Loan

07/03/2026

€

2,653

2,187

^(e)(j)

EuroParcs Topholding B.V.

Netherlands

1st Lien Delay Draw Term Loan

07/03/2026

€

4,691

3,868

^(e)(j)

Excel Fitness Holdings, Inc.

1st Lien Term Loan

10.83% (3M SOFR + 5.50%)

04/27/2029

756

755

^(e)

26	Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Excel Fitness Holdings, Inc.

1st Lien Delay Draw Term Loan

10.83% (3M SOFR + 5.50%)

04/27/2029

304

^(e)(h)

Family First Bidco Limited

United Kingdom

1st Lien Term Loan

12.50%

12/31/2029

^(e)

Flint Opco, LLC

1st Lien Revolving Loan

08/15/2029

—

^(e)(h)

Flint Opco, LLC

1st Lien Term Loan

10.58% (3M SOFR + 5.25%)

08/15/2030

1,028

^(e)

Flint Opco, LLC

1st Lien Delay Draw Term Loan

10.60% (3M SOFR + 5.25%)

08/15/2030

434

^(e)

Flint Opco, LLC

1st Lien Delay Draw Term Loan

10.10% (1M SOFR + 4.75%)

08/15/2030

^(e)(h)

GS SEER Group Borrower LLC

1st Lien Revolving Loan

04/30/2029

—

^(e)(h)

GS SEER Group Borrower LLC

1st Lien Term Loan

12.08% (3M SOFR + 6.75%)

04/29/2030

322

^(e)

GS SEER Group Borrower LLC

1st Lien Delay Draw Term Loan

12.08% (3M SOFR + 6.75%)

04/29/2030

^(e)(h)

Helios Service Partners, LLC & Astra Service Partners, LLC

1st Lien Revolving Loan

03/19/2027

—

^(e)(h)

Helios Service Partners, LLC & Astra Service Partners, LLC

1st Lien Term Loan

11.85% (3M SOFR + 6.25%)

03/19/2027

495

^(e)

Helios Service Partners, LLC & Astra Service Partners, LLC

1st Lien Delay Draw Term Loan

11.85% (3M SOFR + 6.25%)

03/19/2027

760

^(e)(h)

Infinity Home Services HoldCo, Inc.

1st Lien Revolving Loan

14.25% (PRIME + 5.75%)

12/28/2028

^(e)(h)

Infinity Home Services HoldCo, Inc.

1st Lien Revolving Loan

12/28/2028

CAD

—

^(e)(h)

Infinity Home Services HoldCo, Inc.

1st Lien Term Loan

12.18% (3M SOFR + 6.75%)

12/28/2028

3,358

^(e)

Infinity Home Services HoldCo, Inc.

1st Lien Delay Draw Term Loan

12.19% (3M SOFR + 6.75%)

12/28/2028

1,040

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Infinity Home Services HoldCo, Inc.

1st Lien Delay Draw Term Loan

10.96% (1M CDOR + 6.00%)

12/28/2028

289

290

^(e)(h)

IRB Holding Corp.

1st Lien Term Loan

8.19% (1M SOFR + 2.75%)

12/15/2027

12,642

12,628

Leviathan Intermediate Holdco, LLC

1st Lien Revolving Loan

12/27/2027

—

^(e)(h)

Leviathan Intermediate Holdco, LLC

1st Lien Term Loan

12.98% (3M SOFR + 7.50%)

12/27/2027

1,311

^(e)

LGDN Bidco Limited

United Kingdom

1st Lien Term Loan

14.16% (3M SONIA + 8.84%)

12/09/2027

2,114

2,673

^(e)(f)

LGDN Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

12/09/2027

—

^(e)(f)(h)

Mister Car Wash Holdings, Inc.

1st Lien Term Loan

8.34% (1M SOFR + 3.00%)

03/27/2031

8,300

8,321

Mustang Prospects Purchaser, LLC

1st Lien Revolving Loan

06/13/2031

—

^(e)(h)

Mustang Prospects Purchaser, LLC

1st Lien Term Loan

10.33% (6M SOFR + 5.00%)

06/13/2031

1,505

1,490

^(e)(f)

Mustang Prospects Purchaser, LLC

1st Lien Delay Draw Term Loan

06/13/2031

—

^(e)(h)

Northwinds Holding, Inc.

1st Lien Revolving Loan

14.25% (PRIME + 5.75%)

05/01/2029

310

^(e)(h)

Northwinds Holding, Inc.

1st Lien Term Loan

12.23% (3M SOFR + 6.75%)

05/01/2029

4,253

^(e)

Northwinds Holding, Inc.

1st Lien Delay Draw Term Loan

12.23% (3M SOFR + 6.75%)

05/01/2029

2,305

2,304

^(e)(h)

PCI Gaming Authority

1st Lien Term Loan

05/29/2026

3,200

3,192

⁽ⁱ⁾

PestCo, LLC

1st Lien Revolving Loan

02/17/2028

—

^(e)(h)

PestCo, LLC

1st Lien Term Loan

11.48% (3M SOFR + 6.00%)

02/17/2028

395

^(e)

PestCo, LLC

1st Lien Delay Draw Term Loan

11.48% (3M SOFR + 6.00%)

02/17/2028

^(e)(h)

PG Polaris Bidco S.A.R.L.

Luxembourg

1st Lien Term Loan

8.83% (3M SOFR + 3.50%)

03/26/2031

6,000

6,033

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Shares

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Premiere Buyer, LLC

1st Lien Revolving Loan

05/01/2030

—

^(e)(h)

Premiere Buyer, LLC

1st Lien Term Loan

10.08% (3M SOFR + 4.75%)

05/01/2031

3,579

3,526

^(e)

Premiere Buyer, LLC

1st Lien Delay Draw Term Loan

05/01/2031

—

^(e)(h)

Quick Quack Car Wash Holdings, LLC

1st Lien Revolving Loan

06/10/2031

—

^(e)(h)

Quick Quack Car Wash Holdings, LLC

1st Lien Term Loan

10.09% (1M SOFR + 4.75%)

06/10/2031

1,613

1,589

^(e)(f)

Quick Quack Car Wash Holdings, LLC

1st Lien Delay Draw Term Loan

06/10/2031

—

^(e)(h)

Radiant Intermediate Holding, LLC

1st Lien Term Loan

11.20% (3M SOFR + 5.75%)

11/23/2026

494

454

^(e)

Redwood Services, LLC

1st Lien Revolving Loan

11.98% (3M SOFR + 6.50%)

12/31/2027

106

^(e)(h)

Redwood Services, LLC

1st Lien Term Loan

11.98% (3M SOFR + 6.50%)

12/31/2027

1,227

^(e)(f)(g)

Redwood Services, LLC

1st Lien Delay Draw Term Loan

11.98% (3M SOFR + 6.50%)

12/31/2027

3,194

^(e)(f)(g)

Redwood Services, LLC

1st Lien Delay Draw Term Loan

11.98% (3M SOFR + 6.50%)

12/31/2027

2,441

^(e)(f)(h)

Redwood Services, LLC

1st Lien Delay Draw Term Loan

12/31/2027

—

^(e)(g)(h)

Safe Home Security, Inc.

1st Lien Term Loan

12.71% (1M SOFR + 7.25%)

08/05/2024

1,267

^(e)(f)

Safe Home Security, Inc.

1st Lien Delay Draw Term Loan

12.71% (1M SOFR + 7.25%)

08/05/2024

100

^(e)

Service Logic Acquisition, Inc.

1st Lien Revolving Loan

10/30/2025

—

^(e)(h)

Service Logic Acquisition, Inc.

1st Lien Term Loan

9.59% (1M SOFR + 4.00%)

10/29/2027

15,340

15,379

ST Athena Global Holdings Limited

United Kingdom

1st Lien Term Loan

10.59% (6M SONIA + 5.25%)

06/26/2030

1,894

2,358

^(e)(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Shares

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

ST Athena Global LLC

1st Lien Revolving Loan

10.59% (6M SOFR + 5.25%)

06/26/2029

^(e)(h)

ST Athena Global LLC

1st Lien Term Loan

10.59% (6M SOFR + 5.25%)

06/26/2030

3,983

3,924

^(e)(f)

ST Athena Global LLC

1st Lien Delay Draw Term Loan

06/26/2030

—

^(e)(h)

Station Casinos LLC

1st Lien Term Loan

7.59% (1M SOFR + 2.25%)

03/14/2031

6,387

6,380

Vertex Service Partners, LLC

1st Lien Revolving Loan

10.83% (1M SOFR + 5.50%)

11/08/2030

^(e)(h)

Vertex Service Partners, LLC

1st Lien Term Loan

10.82% (3M SOFR + 5.50%)

11/08/2030

1,044

^(e)

Vertex Service Partners, LLC

1st Lien Delay Draw Term Loan

10.82% (3M SOFR + 5.50%)

11/08/2030

1,432

^(e)(h)

Witherslack Bidco Limited

United Kingdom

1st Lien Term Loan

12.01% (3M SONIA + 6.67%)

08/17/2028

5,702

7,207

^(e)(f)(g)

Witherslack Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

08/17/2028

—

^(e)(g)(h)

YE Brands Holdings, LLC

1st Lien Revolving Loan

10/18/2027

—

^(e)(h)

YE Brands Holdings, LLC

1st Lien Term Loan

10.93% (3M SOFR + 5.50%)

10/18/2027

1,055

^(e)(f)

YE Brands Holdings, LLC

1st Lien Term Loan

11.18% (3M SOFR + 5.75%)

10/18/2027

1,135

^(e)(f)

YE Brands Holdings, LLC

1st Lien Delay Draw Term Loan

11.18% (3M SOFR + 5.75%)

10/18/2027

227

^(e)(h)

318,026

8.26

Consumer Staples Distribution and Retail

BGI Purchaser, Inc.

1st Lien Revolving Loan

9.35% (3M SOFR + 4.00%)

05/31/2030

2,856

2,813

^(e)

BGI Purchaser, Inc.

1st Lien Revolving Loan

9.34% (1M SOFR + 4.00%)

05/31/2030

104

103

^(e)(h)

BGI Purchaser, Inc.

1st Lien Term Loan

10.35% (3M SOFR + 5.00%)

06/02/2031

3,627

3,572

^(e)(f)(g)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Shares

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

BGI Purchaser, Inc.

1st Lien Delay Draw Term Loan

06/02/2031

—

^(e)(g)(h)

BR PJK Produce, LLC

1st Lien Delay Draw Term Loan

11.45% (3M SOFR + 6.00%)

11/15/2027

261

^(e)(h)

Continental Cafe, LLC

1st Lien Revolving Loan

11.44% (1M SOFR + 6.00%)

11/30/2027

590

^(e)(h)

Continental Cafe, LLC

1st Lien Term Loan

11.44% (1M SOFR + 6.00%)

11/30/2027

7,497

^(e)(f)

Continental Cafe, LLC

1st Lien Term Loan

11.69% (1M SOFR + 6.25%)

11/30/2027

804

803

^(e)

Continental Cafe, LLC

1st Lien Term Loan

11.48% (3M SOFR + 6.00%)

11/30/2027

358

^(e)(f)

Continental Cafe, LLC

1st Lien Delay Draw Term Loan

11.44% (1M SOFR + 6.00%)

11/30/2027

2,760

^(e)

DecoPac, Inc.

1st Lien Revolving Loan

11.48% (3M SOFR + 6.00%)

05/14/2026

715

^(e)(h)

DecoPac, Inc.

1st Lien Term Loan

11.48% (3M SOFR + 6.00%)

05/15/2028

21,684

^(e)(f)(g)

LJ Perimeter Buyer, Inc.

1st Lien Term Loan

11.98% (3M SOFR + 6.50%)

10/31/2028

3,233

3,136

^(e)

LJ Perimeter Buyer, Inc.

1st Lien Delay Draw Term Loan

11.99% (3M SOFR + 6.50%)

10/31/2028

416

403

^(e)(h)

Mr. Greens Intermediate, LLC

1st Lien Revolving Loan

05/01/2029

—

^(e)(h)

Mr. Greens Intermediate, LLC

1st Lien Term Loan

11.68% (1M SOFR + 6.25%)

05/01/2029

2,303

^(e)

Mr. Greens Intermediate, LLC

1st Lien Delay Draw Term Loan

05/01/2029

—

^(e)(h)

SFE Intermediate HoldCo LLC

1st Lien Term Loan

11.48% (3M SOFR + 6.00%)

07/31/2026

2,053

^(e)(f)

Worldwide Produce Acquisition, LLC

1st Lien Revolving Loan

01/18/2029

—

^(e)(h)

Worldwide Produce Acquisition, LLC

1st Lien Term Loan

11.58% (3M SOFR + 6.25%)

01/18/2029

142

141

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Shares

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Worldwide Produce Acquisition, LLC

1st Lien Delay Draw Term Loan

11.58% (3M SOFR + 6.25%)

01/18/2029

^(e)

ZB Holdco LLC

1st Lien Revolving Loan

11.00% (3M SOFR + 5.50%)

02/09/2028

204

^(e)(h)

ZB Holdco LLC

1st Lien Term Loan

10.98% (3M SOFR + 5.50%)

02/09/2028

1,947

^(e)(f)

ZB Holdco LLC

1st Lien Delay Draw Term Loan

10.98% (3M SOFR + 5.50%)

02/09/2028

1,203

^(e)(h)

52,596

1.37

Energy

Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC

1st Lien Term Loan

14.43% (3M SOFR + 9.00%)

11/16/2026

5,772

^(e)

Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC

1st Lien Delay Draw Term Loan

11/16/2026

—

^(e)(h)

Enviva Inc.

1st Lien Revolving Loan

10.00% (6M SOFR + 1.50%)

06/30/2027

5,074

5,125

^(h)

Enviva Inc.

1st Lien Delay Draw Term Loan

13.34% (6M SOFR + 8.00%)

12/13/2024

3,900

4,485

^(e)(h)

GNZ Energy Bidco Limited

New Zealand

1st Lien Delay Draw Term Loan

11.68% (3M BKBM + 6.00%)

07/26/2027

NZD

19,293

11,752

^(e)(f)

GNZ Energy Bidco Limited

New Zealand

1st Lien Delay Draw Term Loan

07/26/2027

NZD

—

^(e)(h)

Gulf Finance, LLC

1st Lien Term Loan

11.69% (1M SOFR + 6.25%)

08/25/2026

3,261

3,278

Halcon Holdings, LLC

1st Lien Term Loan

12.98% (3M SOFR + 7.50%)

11/24/2025

8,191

^(e)

Halcon Holdings, LLC

1st Lien Delay Draw Term Loan

12.98% (3M SOFR + 7.50%)

11/24/2025

1,545

1,546

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Shares

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

HighPeak Energy, Inc.

1st Lien Term Loan

12.98% (3M SOFR + 7.50%)

09/30/2026

14,759

^(e)

Offen, Inc.

1st Lien Term Loan

10.46% (1M SOFR + 5.00%)

06/22/2026

2,643

^(e)(f)

Offen, Inc.

1st Lien Delay Draw Term Loan

10.46% (1M SOFR + 5.00%)

06/22/2026

13,575

^(e)(f)

Prairie ECI Acquiror LP

1st Lien Term Loan

10.09% (1M SOFR + 4.75%)

08/01/2029

7,288

7,283

PX HoldCo3 Limited

United Kingdom

1st Lien Delay Draw Term Loan

11.84% (3M SONIA + 6.50%)

04/27/2027

2,947

3,726

^(e)(f)(g)

PX HoldCo3 Limited

United Kingdom

1st Lien Delay Draw Term Loan

11.70% (3M SONIA + 6.50%)

04/27/2027

221

279

^(e)(g)

TransMontaigne Operating Company L.P.

1st Lien Term Loan

8.96% (1M SOFR + 3.50%)

11/17/2028

7,000

7,009

89,423

2.32

Financial Services

Alpha Luxco 2 Sarl

Luxembourg

1st Lien Delay Draw Term Loan

10.73% (6M EURIBOR + 5.50%)

01/09/2025

€

1,041

1,115

^(e)(f)(g)

Antenore Bidco SpA

Italy

1st Lien Delay Draw Term Loan

11/02/2031

€

—

^(e)(h)

AQ Sage Buyer, LLC

1st Lien Revolving Loan

11.51% (3M SOFR + 6.00%)

01/26/2026

^(e)(h)

AQ Sage Buyer, LLC

1st Lien Delay Draw Term Loan

11.51% (6M SOFR + 6.00%)

01/25/2027

254

247

^(e)

Arete Bidco Limited

Jersey

1st Lien Term Loan

12.13% (3M SONIA + 6.93%)

05/08/2031

2,590

3,274

^(e)(g)

Arete Bidco Limited

Jersey

1st Lien Delay Draw Term Loan

12.15% (6M SONIA + 6.93%)

05/08/2031

^(e)(g)(h)

AssetMark Financial Holdings, Inc.

1st Lien Term Loan

06/03/2031

15,000

⁽ⁱ⁾

BCC Blueprint Holdings I, LLC

1st Lien Term Loan

12.24% (3M SOFR + 6.75%)

09/15/2027

7,377

^(e)

Beacon Pointe Harmony, LLC

1st Lien Revolving Loan

12/29/2027

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Shares

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Beacon Pointe Harmony, LLC

1st Lien Term Loan

10.84% (1M SOFR + 5.50%)

12/29/2028

6,016

^(e)(f)

Beacon Pointe Harmony, LLC

1st Lien Delay Draw Term Loan

10.84% (1M SOFR + 5.50%)

12/29/2028

4,340

^(e)(h)

Beacon Pointe Harmony, LLC

1st Lien Delay Draw Term Loan

12/29/2028

—

^(e)(h)(i)

BlauwTrust Holding B.V.

Netherlands

1st Lien Delay Draw Term Loan

10.72% (3M EURIBOR + 7.00%)

01/08/2029

€

6,114

6,548

^(e)(f)(g)

Brokers Alliance S.L.

Spain

1st Lien Term Loan

9.72% (3M EURIBOR + 6.00%)

04/09/2029

€

845

905

^(e)(f)(g)

Brokers Alliance S.L.

Spain

1st Lien Term Loan

10.72% (3M EURIBOR + 7.00%)

04/09/2029

€

1,989

2,130

^(e)(g)

Brokers Alliance S.L.

Spain

1st Lien Delay Draw Term Loan

9.72% (3M EURIBOR + 6.00%)

04/09/2029

€

1,539

1,648

^(e)(g)

Brokers Alliance S.L.

Spain

1st Lien Delay Draw Term Loan

10.72% (3M EURIBOR + 7.00%)

04/09/2029

€

213

228

^(e)(g)(h)

Cliffwater LLC

1st Lien Revolving Loan

10/07/2030

—

^(e)(h)

Cliffwater LLC

1st Lien Term Loan

10.84% (1M SOFR + 5.50%)

10/07/2030

685

^(e)

Convera International Financial S.a r.l.

Luxembourg

1st Lien Term Loan

11.48% (3M SOFR + 6.00%)

03/01/2028

25,289

^(e)(f)

Convera International Holdings Limited

Jersey

1st Lien Revolving Loan

03/01/2027

—

^(e)(h)

Edelman Financial Engines Center, LLC, The

1st Lien Term Loan

8.59% (1M SOFR + 3.25%)

04/07/2028

22,949

22,970

Edelman Financial Engines Center, LLC, The

2nd Lien Term Loan

10.59% (1M SOFR + 5.25%)

10/06/2028

20,000

19,997

Focus Financial Partners, LLC

1st Lien Term Loan

8.09% (1M SOFR + 2.75%)

06/30/2028

8,940

8,925

GC Waves Holdings, Inc.

1st Lien Revolving Loan

08/10/2029

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Shares

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

GC Waves Holdings, Inc.

1st Lien Term Loan

10.69% (1M SOFR + 5.25%)

08/10/2029

999

^(e)

GC Waves Holdings, Inc.

1st Lien Delay Draw Term Loan

11.44% (1M SOFR + 6.00%)

08/10/2029

883

^(e)(h)

GC Waves Holdings, Inc.

1st Lien Delay Draw Term Loan

10.69% (1M SOFR + 5.25%)

08/10/2029

^(e)

GTCR F Buyer Corp.

1st Lien Revolving Loan

09/06/2029

—

^(e)(h)

GTCR F Buyer Corp.

1st Lien Term Loan

11.08% (3M SOFR + 5.75%)

09/06/2030

895

894

^(e)

GTCR F Buyer Corp.

1st Lien Delay Draw Term Loan

11.08% (3M SOFR + 5.75%)

09/06/2030

136

^(e)(h)

GTCR W Merger Sub LLC

1st Lien Term Loan

8.33% (3M SOFR + 3.00%)

01/31/2031

15,500

15,498

HighTower Holding, LLC

1st Lien Term Loan

9.59% (3M SOFR + 4.00%)

04/21/2028

5,465

5,471

IVC Acquisition Ltd

United Kingdom

1st Lien Term Loan

8.80% (6M EURIBOR + 5.00%)

12/12/2028

6,022

6,427

Jewel Bidco Limited

United Kingdom

1st Lien Term Loan

12.32% (6M SONIA + 6.75%)

07/24/2028

6,203

7,841

^(e)(f)

Jewel Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.30% (6M SONIA + 6.75%)

07/24/2028

3,797

4,800

^(e)

The Mather Group, LLC

1st Lien Revolving Loan

13.50% (PRIME + 5.00%)

03/31/2028

350

343

^(e)(h)

The Mather Group, LLC

1st Lien Term Loan

11.51% (6M SOFR + 6.00%)

03/31/2028

4,913

4,814

^(e)(f)

The Mather Group, LLC

1st Lien Delay Draw Term Loan

11.40% (3M SOFR + 6.00%)

03/31/2028

1,976

1,937

^(e)(h)

Monica Holdco (US), Inc.

1st Lien Revolving Loan

11.74% (3M SOFR + 6.25%)

01/08/2026

1,002

^(e)(h)

Monica Holdco (US), Inc.

1st Lien Term Loan

11.73% (3M SOFR + 6.25%)

01/07/2028

7,973

^(e)(f)

Pathstone Family Office LLC

1st Lien Revolving Loan

05/15/2028

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Shares

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Pathstone Family Office LLC

1st Lien Term Loan

10.42% (1M SOFR + 5.00%)

05/15/2029

3,585

^(e)(f)

Pathstone Family Office LLC

1st Lien Term Loan

10.44% (1M SOFR + 5.00%)

05/15/2029

^(e)

Pathstone Family Office LLC

1st Lien Delay Draw Term Loan

10.42% (3M SOFR + 5.00%)

05/15/2029

258

^(e)(f)

Pathstone Family Office LLC

1st Lien Delay Draw Term Loan

05/15/2029

—

^(e)(h)

PCIA SPV-3, LLC

1st Lien Revolving Loan

08/01/2029

—

^(e)(h)

PCIA SPV-3, LLC

1st Lien Term Loan

11.58% (3M SOFR + 6.25%)

08/01/2029

1,509

1,508

^(e)

PCIA SPV-3, LLC

1st Lien Delay Draw Term Loan

11.58% (3M SOFR + 6.25%)

08/01/2029

265

^(e)(h)

PCS Midco, Inc.

1st Lien Revolving Loan

11.10% (3M SOFR + 5.75%)

03/01/2030

^(e)(h)

PCS Midco, Inc.

1st Lien Term Loan

11.10% (3M SOFR + 5.75%)

03/01/2030

1,025

1,005

^(e)(g)

PCS Midco, Inc.

1st Lien Delay Draw Term Loan

11.10% (3M SOFR + 5.75%)

03/01/2030

^(e)(h)

Pegasus (Bidco) Limited

Jersey

1st Lien Term Loan

12.77% (6M SONIA + 7.25%)

04/04/2029

4,125

4,953

^(e)(f)

Pegasus (Bidco) Limited

Jersey

1st Lien Delay Draw Term Loan

12.72% (6M SONIA + 7.20%)

04/04/2029

822

987

^(e)

Perigon Wealth Management, LLC

1st Lien Revolving Loan

03/28/2031

—

^(e)(h)

Perigon Wealth Management, LLC

1st Lien Term Loan

11.09% (1M SOFR + 5.75%)

03/28/2031

2,032

1,991

^(e)(f)

Perigon Wealth Management, LLC

1st Lien Delay Draw Term Loan

11.10% (1M SOFR + 5.75%)

03/28/2031

^(e)(h)

Plutus Bidco Limited

Jersey

1st Lien Term Loan

10.95% (6M SONIA + 5.75%)

09/21/2028

5,250

6,637

^(e)(g)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Shares

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Plutus Bidco Limited

Jersey

1st Lien Delay Draw Term Loan

10.95% (6M SONIA + 5.75%)

09/21/2028

1,750

2,212

^(e)(g)

ProFund S.a r.l.

Poland

1st Lien Term Loan

9.67% (6M EURIBOR + 6.00%)

12/03/2027

€

2,164

2,317

^(e)(f)

ProFund S.a r.l.

Poland

1st Lien Delay Draw Term Loan

9.67% (6M EURIBOR + 6.00%)

12/03/2027

€

^(e)(h)

ProFund S.a r.l.

Poland

1st Lien Delay Draw Term Loan

11.76% (6M WIBOR + 6.00%)

12/03/2027

PLN

15,023

3,732

^(e)

RFS Opco LLC

1st Lien Term Loan

10.33% (3M SOFR + 5.00%)

04/04/2031

6,231

6,168

^(e)(f)

Steward Partners Global Advisory, LLC

1st Lien Term Loan

10.97% (3M SOFR + 5.50%)

10/16/2028

387

^(e)(f)

Steward Partners Global Advisory, LLC

1st Lien Delay Draw Term Loan

11.05% (6M SOFR + 5.50%)

10/16/2028

^(e)(h)

TK Elevator Midco GmbH

Germany

1st Lien Term Loan

8.79% (6M SOFR + 3.50%)

04/30/2030

€

5,064

5,086

TK Elevator Midco GmbH

Germany

1st Lien Term Loan

7.93% (6M EURIBOR + 4.00%)

04/30/2030

6,000

6,408

Toscafund Limited

United Kingdom

1st Lien Delay Draw Term Loan

13.52% (6M SONIA + 8.00%)

04/02/2025

1,980

2,503

^(e)(f)

Trustly AB

Sweden

1st Lien Term Loan

10.47% (3M STIBOR + 6.75%)

06/30/2025

SEK

5,500

519

^(e)

Trustly AB

Sweden

1st Lien Delay Draw Term Loan

10.47% (3M STIBOR + 6.75%)

06/30/2025

SEK

2,700

255

^(e)

The Ultimus Group Midco, LLC

1st Lien Revolving Loan

03/07/2030

—

^(e)(h)

The Ultimus Group Midco, LLC

1st Lien Term Loan

10.93% (3M SOFR + 5.50%)

03/07/2031

3,002

2,972

^(e)(f)

The Ultimus Group Midco, LLC

1st Lien Delay Draw Term Loan

03/07/2031

—

^(e)(h)

Waverly Advisors, LLC

1st Lien Revolving Loan

11.23% (3M SOFR + 5.75%)

03/01/2028

200

^(e)(h)

Waverly Advisors, LLC

1st Lien Term Loan

11.23% (3M SOFR + 5.75%)

03/01/2028

2,021

^(e)(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Waverly Advisors, LLC

1st Lien Delay Draw Term Loan

11.23% (3M SOFR + 5.75%)

03/01/2028

1,477

^(e)

Waverly Advisors, LLC

1st Lien Delay Draw Term Loan

10.98% (3M SOFR + 5.50%)

03/01/2028

582

^(e)(h)

Wealth Enhancement Group, LLC

1st Lien Revolving Loan

10/04/2027

—

^(e)(h)

Wealth Enhancement Group, LLC

1st Lien Term Loan

10.83% (3M SOFR + 5.50%)

10/04/2027

3,396

^(e)(f)

Wealth Enhancement Group, LLC

1st Lien Delay Draw Term Loan

10.84% (3M SOFR + 5.50%)

10/04/2027

14,505

^(e)(f)(h)

262,126

6.81

Food, Beverage and Tobacco

8th Avenue Food & Provisions, Inc.

1st Lien Term Loan

9.21% (1M SOFR + 3.75%)

10/01/2025

9,876

9,351

B&G Foods Inc

1st Lien Term Loan

10/10/2029

4,750

4,703

^(e)(i)

Berner Food & Beverage, LLC

1st Lien Revolving Loan

10.94% (1M SOFR + 5.50%)

07/30/2026

172

^(e)(h)

Berner Food & Beverage, LLC

1st Lien Term Loan

10.98% (3M SOFR + 5.50%)

07/30/2027

2,574

^(e)(f)

CHG PPC Parent LLC

2nd Lien Term Loan

12.21% (1M SOFR + 6.75%)

12/10/2029

3,000

^(e)(f)

Chobani, LLC

1st Lien Term Loan

8.71% (1M SOFR + 3.25%)

10/25/2027

4,171

4,180

Chobani, LLC

1st Lien Term Loan

9.08% (1M SOFR + 3.75%)

10/25/2027

6,468

6,492

City Line Distributors LLC

1st Lien Revolving Loan

08/31/2028

—

_—

^(e)(h)

City Line Distributors LLC

1st Lien Term Loan

11.46% (1M SOFR + 6.00%)

08/31/2028

313

^(e)

City Line Distributors LLC

1st Lien Delay Draw Term Loan

11.44% (1M SOFR + 6.00%)

08/31/2028

126

^(e)

Demakes Borrower, LLC

1st Lien Term Loan

11.55% (3M SOFR + 6.25%)

12/12/2029

956

^(e)(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Demakes Borrower, LLC

1st Lien Delay Draw Term Loan

12/12/2029

—

^(e)(h)

Florida Food Products, LLC

1st Lien Term Loan

10.46% (1M SOFR + 5.00%)

10/18/2028

^(e)

Florida Food Products, LLC

2nd Lien Term Loan

13.46% (1M SOFR + 8.00%)

10/18/2029

7,299

6,496

^(e)

Gotham Greens Holdings, PBC

1st Lien Term Loan

14.69% (1M SOFR +9.25%)

12/29/2026

6,658

^(e)

Gotham Greens Holdings, PBC

1st Lien Delay Draw Term Loan

14.69% (1M SOFR + 9.25%)

12/29/2026

8,535

^(e)

KNPC Holdco, LLC

1st Lien Term Loan

10.78% (3M SOFR + 5.50%)

10/22/2029

2,044

^(e)(f)

KNPC Holdco, LLC

1st Lien Term Loan

12.03% (3M SOFR + 6.75%)

10/22/2029

488

^(e)

KNPC Holdco, LLC

1st Lien Term Loan

11.28% (6M SOFR + 6.00%)

10/22/2029

475

^(e)

Quirch Foods Holdings, LLC

1st Lien Term Loan

10.64% (3M SOFR + 5.00%)

10/27/2027

7,209

7,001

^(e)

RB Holdings Interco, LLC

1st Lien Revolving Loan

10.47% (3M SOFR + 5.00%)

05/04/2028

488

483

^(e)(h)

RB Holdings Interco, LLC

1st Lien Term Loan

10.47% (3M SOFR + 5.00%)

05/04/2028

3,713

3,676

^(e)(f)

Sigma Holdco BV

Netherlands

1st Lien Term Loan

10.18% (3M SOFR + 4.75%)

01/02/2028

Sugar PPC Buyer LLC

1st Lien Term Loan

11.33% (1M SOFR + 6.00%)

10/02/2030

2,149

^(e)

Sugar PPC Buyer LLC

1st Lien Delay Draw Term Loan

11.33% (1M SOFR + 6.00%)

10/02/2030

595

^(e)(h)

Watermill Express, LLC

1st Lien Revolving Loan

11.22% (3M SOFR+ 5.75%)

07/05/2029

142

^(e)(h)

Watermill Express, LLC

1st Lien Term Loan

11.23% (3M SOFR + 5.75%)

07/05/2029

2,797

^(e)(f)

Watermill Express, LLC

1st Lien Delay Draw Term Loan

11.23% (3M SOFR + 5.75%)

07/05/2029

426

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Winebow Holdings, Inc.

1st Lien Term Loan

11.69% (1M SOFR + 6.25%)

07/01/2025

3,353

3,118

^(e)(f)

76,987

2.00

Health Care Equipment and Services

Agiliti Health, Inc.

1st Lien Term Loan

8.30% (3M SOFR + 3.00%)

05/01/2030

10,996

10,941

AmeriVet Partners Management, Inc.

1st Lien Term Loan

0.165

12/02/2030

7,130

^(e)(g)

AmeriVet Partners Management, Inc.

1st Lien Delay Draw Term Loan

0.165

12/02/2030

1,149

^(e)(g)(h)

Amethyst Radiotherapy Group B.V.

Netherlands

1st Lien Term Loan

8.90% (1M EURIBOR + 5.25%)

04/29/2031

1,000

1,071

^(e)(g)

Amethyst Radiotherapy Group B.V.

Netherlands

1st Lien Delay Draw Term Loan

04/29/2031

—

^(e)(g)(h)

Artivion, Inc.

1st Lien Revolving Loan

9.33% (3M SOFR + 4.00%)

01/18/2030

168

167

^(e)(h)

Artivion, Inc.

1st Lien Term Loan

11.83% (3M SOFR + 6.50%)

01/18/2030

2,278

^(e)(f)

Artivion, Inc.

1st Lien Delay Draw Term Loan

01/18/2030

—

^(e)(h)

athenahealth Group Inc.

1st Lien Revolving Loan

02/15/2027

—

^(e)(h)

athenahealth Group Inc.

1st Lien Term Loan

8.59% (1M SOFR + 3.25%)

02/15/2029

7,985

7,950

Avalign Technologies, Inc.

1st Lien Revolving Loan

12/20/2028

—

^(e)(h)

Avalign Technologies, Inc.

1st Lien Term Loan

12.60% (3M SOFR + 7.25%)

12/20/2028

1,664

1,631

^(e)(f)(g)

Bracket Intermediate Holding Corp.

1st Lien Term Loan

10.43% (3M SOFR + 5.00%)

05/08/2028

14,332

14,374

CEP V I 5 UK Limited

United Kingdom

1st Lien Delay Draw Term Loan

13.27% (6M SOFR + 8.00%)

02/18/2027

26,856

24,170

^(e)(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

CNT Holdings I Corp

1st Lien Term Loan

8.83% (3M SOFR + 3.50%)

11/08/2027

6,184

6,194

Color Intermediate, LLC

1st Lien Term Loan

10.93% (3M SOFR + 5.50%)

10/04/2029

1,841

^(e)(f)

Comprehensive EyeCare Partners, LLC

1st Lien Revolving Loan

12.10% (3M SOFR + 6.50%)

02/14/2025

^(e)

Comprehensive EyeCare Partners, LLC

1st Lien Term Loan

12.10% (3M SOFR + 6.50%)

02/14/2025

986

888

^(e)(f)

Comprehensive EyeCare Partners, LLC

1st Lien Delay Draw Term Loan

12.10% (3M SOFR + 6.50%)

02/14/2025

694

624

^(e)(f)

Convey Health Solutions, Inc.

1st Lien Term Loan

10.68% (3M SOFR + 5.25%)

09/04/2026

2,651

2,147

^(e)(f)

Crown CT Parent Inc.

1st Lien Revolving Loan

10.98% (3M SOFR + 5.50%)

03/08/2028

181

177

^(e)(h)

Crown CT Parent Inc.

1st Lien Term Loan

10.98% (3M SOFR + 5.50%)

03/08/2029

8,131

7,969

^(e)(f)

CVP Holdco, Inc.

1st Lien Revolving Loan

06/28/2030

—

^(e)(h)

CVP Holdco, Inc.

1st Lien Term Loan

10.34% (6M SOFR + 5.00%)

06/30/2031

19,710

19,513

^(e)(f)(g)

CVP Holdco, Inc.

1st Lien Delay Draw Term Loan

06/30/2031

—

^(e)(g)(h)

Datix Bidco Limited

United Kingdom

1st Lien Revolving Loan

10/30/2030

—

^(e)(h)

Datix Bidco Limited

United Kingdom

1st Lien Term Loan

10.81% (6M SOFR + 5.50%)

04/30/2031

5,965

5,846

^(e)(g)

Datix Bidco Limited

United Kingdom

1st Lien Term Loan

10.74% (6M SONIA + 5.50%)

04/30/2031

3,289

4,075

^(e)(g)

Datix Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

04/30/2031

—

^(e)(g)(h)

Electron Bidco Inc.

1st Lien Term Loan

8.46% (1M SOFR + 3.00%)

11/01/2028

9,925

9,916

Empower Payments Investor, LLC

1st Lien Revolving Loan

03/12/2030

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Empower Payments Investor, LLC

1st Lien Term Loan

10.48% (6M SOFR + 5.25%)

03/12/2031

477

468

^(e)(f)

Empower Payments Investor, LLC

1st Lien Delay Draw Term Loan

03/12/2031

—

^(e)(h)

Envisage Dental UK Limited

United Kingdom

1st Lien Term Loan

12.74% (3M SONIA + 7.50%)

02/07/2031

2,500

3,160

^(e)(g)

Envisage Dental UK Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.74% (3M SONIA + 7.50%)

02/07/2031

1,030

1,302

^(e)(g)(h)

Evolent Health LLC

1st Lien Revolving Loan

9.45% (1M SOFR + 4.00%)

01/22/2029

^(e)(h)

Floss Bidco Limited

United Kingdom

1st Lien Term Loan

12.85% (1M SONIA + 7.38%)

09/07/2026

473

568

^(e)(f)

Floss Bidco Limited

United Kingdom

1st Lien Term Loan

12.23% (1M SONIA + 7.00%)

09/07/2026

361

433

^(e)(f)

Gainwell Acquisition Corp.

1st Lien Term Loan

9.43% (3M SOFR + 4.00%)

10/01/2027

14,460

13,984

Global Medical Response, Inc.

1st Lien Term Loan

10.85% (3M SOFR + 5.50%)

10/31/2028

16,051

15,518

^(g)

HuFriedy Group Acquisition LLC

1st Lien Revolving Loan

05/31/2030

—

^(e)(g)(h)

HuFriedy Group Acquisition LLC

1st Lien Term Loan

10.85% (6M SOFR + 5.50%)

05/30/2031

19,342

18,955

^(e)(g)

HuFriedy Group Acquisition LLC

1st Lien Delay Draw Term Loan

05/30/2031

—

^(e)(g)(h)

LifeScan Global Corporation

1st Lien Term Loan

12/31/2026

3,510

1,617

^(j)

LifeScan Global Corporation

2nd Lien Term Loan

03/31/2027

5,692

285

^(e)(j)

Mamba Purchaser, Inc.

1st Lien Term Loan

8.58% (1M SOFR + 3.25%)

10/16/2028

9,992

9,982

MED ParentCo, LP

1st Lien Term Loan

9.34% (1M SOFR + 4.00%)

04/15/2031

6,100

6,092

Medline Borrower, LP

1st Lien Term Loan

8.09% (1M SOFR + 2.75%)

10/23/2028

4,345

4,351

Medline Borrower, LP

1st Lien Term Loan

10/23/2028

7,400

⁽ⁱ⁾

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Medmark Services Inc

1st Lien Term Loan

10.60% (3M SOFR + 5.00%)

06/11/2027

1,773

1,684

^(e)(f)

Medmark Services Inc

1st Lien Delay Draw Term Loan

10.60% (3M SOFR + 5.00%)

06/11/2027

1,516

1,440

^(e)(f)

Medmark Services Inc

2nd Lien Term Loan

14.10% (3M SOFR + 8.50%)

06/11/2028

9,139

8,043

^(e)

Medmark Services Inc

2nd Lien Delay Draw Term Loan

14.10% (3M SOFR + 8.50%)

06/11/2028

4,897

4,309

^(e)

Network Bidco B.V.

Netherlands

1st Lien Term Loan

9.55% (3M EURIBOR + 5.83%)

05/14/2029

€

5,778

6,188

^(e)(f)

Network Bidco B.V.

Netherlands

1st Lien Delay Draw Term Loan

9.08% (3M EURIBOR + 5.25%)

05/14/2029

€

870

931

^(e)(h)

Next Holdco, LLC

1st Lien Revolving Loan

11/09/2029

—

^(e)(h)

Next Holdco, LLC

1st Lien Term Loan

11.32% (3M SOFR + 6.00%)

11/11/2030

993

^(e)(f)

Next Holdco, LLC

1st Lien Delay Draw Term Loan

11/11/2030

—

^(e)(h)

NextCare, Inc.

2nd Lien Term Loan

15.98% (3M SOFR + 10.50%)

12/31/2024

7,517

^(e)(f)(g)

Nomi Health, Inc.

1st Lien Term Loan

13.55% (3M SOFR + 8.25%)

07/21/2028

2,495

2,445

^(e)

Nomi Health, Inc.

1st Lien Term Loan

13.59% (3M SOFR + 8.25%)

07/21/2028

1,494

1,465

^(e)(f)

NSPC Intermediate Corp.

1st Lien Term Loan

02/13/2026

100

—

^(e)(j)

Olympia Acquisition, Inc.

1st Lien Term Loan

02/26/2027

3,745

2,022

^(e)(j)

Olympia Acquisition, Inc.

1st Lien Delay Draw Term Loan

02/26/2027

576

311

^(e)(j)

Olympia Acquisition, Inc.

1st Lien Delay Draw Term Loan

14.99% (3M SOFR + 9.50%)

02/26/2027

202

^(e)(h)

OMH-HealthEdge Holdings, LLC

1st Lien Revolving Loan

10/08/2029

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

OMH-HealthEdge Holdings, LLC

1st Lien Term Loan

11.23% (3M SOFR + 6.00%)

10/08/2029

8,081

^(e)

Paragon 28, Inc.

1st Lien Revolving Loan

9.30% (3M SOFR + 4.00%)

11/02/2028

^(e)(h)

Paragon 28, Inc.

1st Lien Term Loan

12.05% (3M SOFR + 6.75%)

11/02/2028

3,652

3,560

^(e)(g)

Paragon 28, Inc.

1st Lien Delay Draw Term Loan

11/02/2028

—

^(e)(g)(h)

Pluto Acquisition I, Inc.

1st Lien Term Loan

9.33% (3M SOFR + 4.00%)

09/20/2028

21,308

18,964

^(e)(f)(g)

Premise Health Holding Corp.

1st Lien Revolving Loan

03/01/2030

—

^(e)(h)

Premise Health Holding Corp.

1st Lien Term Loan

10.76% (3M SOFR + 5.50%)

03/03/2031

2,675

2,634

^(e)(f)

Prime Dental Alliance B.V.

Netherlands

1st Lien Term Loan

10.97% (3M EURIBOR + 7.25%)

06/21/2027

€

2,200

2,356

^(e)(f)

Prime Dental Alliance B.V.

Netherlands

1st Lien Term Loan

11.22% (3M EURIBOR + 7.50%)

06/21/2027

€

953

1,021

^(e)

Prime Dental Alliance B.V.

Netherlands

1st Lien Delay Draw Term Loan

10.97% (3M EURIBOR + 7.25%)

06/21/2027

€

1,654

1,772

^(e)

Prime Dental Alliance B.V.

Netherlands

1st Lien Delay Draw Term Loan

11.22% (3M EURIBOR + 7.50%)

06/21/2027

2,750

2,945

^(e)(h)

Resonetics, LLC

1st Lien Term Loan

9.08% (6M SOFR + 3.75%)

06/06/2031

3,054

3,058

Rubicone Bidco Limited

United Kingdom

1st Lien Term Loan

13.34% (3M SONIA + 8.00%)

12/01/2028

2,896

3,660

^(e)(f)(g)

Rubicone Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

13.34% (3M SONIA + 8.00%)

12/01/2028

1,671

2,113

^(e)(g)

Rubicone Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

12/01/2028

—

^(e)(g)(h)(i)

Select Medical Corporation

1st Lien Term Loan

8.34% (1M SOFR + 3.00%)

03/06/2027

4,811

4,809

SiroMed Physician Services, Inc.

1st Lien Revolving Loan

03/31/2025

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

SiroMed Physician Services, Inc.

1st Lien Term Loan

10.73% (3M SOFR + 5.25%)

03/31/2025

420

^(e)(f)

Sotera Health Holdings, LLC

1st Lien Term Loan

8.59% (1M SOFR + 3.25%)

05/30/2031

9,500

9,468

Symplr Software Inc.

1st Lien Revolving Loan

12/22/2027

—

^(e)(h)

Symplr Software Inc.

1st Lien Term Loan

9.93% (3M SOFR + 4.50%)

12/22/2027

3,382

3,158

^(f)

Symplr Software Inc.

1st Lien Term Loan

10.68% (3M SOFR + 5.25%)

12/22/2027

1,847

1,754

^(e)

Symplr Software Inc.

2nd Lien Term Loan

13.30% (3M SOFR + 7.88%)

12/22/2028

12,343

11,726

^(e)(f)

Symplr Software Inc.

2nd Lien Term Loan

15.43% (3M SOFR + 10.00%)

12/22/2028

5,508

^(e)(g)

Tandarts Today Holding B.V.

Netherlands

1st Lien Term Loan

10.97% (3M EURIBOR + 7.25%)

02/24/2028

€

643

689

^(e)(f)(g)

Tandarts Today Holding B.V.

Netherlands

1st Lien Delay Draw Term Loan

10.97% (3M EURIBOR + 7.25%)

02/24/2028

€

1,498

1,604

^(e)(g)(h)

TEAM Services Group, LLC

1st Lien Term Loan

12/20/2027

5,000

4,879

^(e)(i)

Therapy Brands Holdings LLC

2nd Lien Term Loan

12.21% (1M SOFR + 6.75%)

05/18/2029

4,334

4,161

^(e)(f)

United Digestive MSO Parent, LLC

1st Lien Revolving Loan

11.84% (3M SOFR + 6.50%)

03/30/2029

^(e)(h)

United Digestive MSO Parent, LLC

1st Lien Term Loan

11.98% (3M SOFR + 6.50%)

03/30/2029

3,130

3,129

^(e)

United Digestive MSO Parent, LLC

1st Lien Delay Draw Term Loan

03/30/2029

—

^(e)(h)

Veonet Lense GmbH

Germany

1st Lien Term Loan

7.97% (3M EURIBOR + 4.25%)

03/14/2029

€

5,000

5,346

Veonet Lense GmbH

Germany

1st Lien Term Loan

03/14/2029

1,111

1,188

⁽ⁱ⁾

Viant Medical Holdings, Inc. (f/k/a MedPlast Holdings Inc.)

1st Lien Term Loan

9.21% (1M SOFR + 3.75%)

07/02/2025

24,380

24,106

^(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Viant Medical Holdings, Inc. (f/k/a MedPlast Holdings Inc.)

1st Lien Term Loan

11.69% (1M SOFR + 6.25%)

07/02/2025

524

^(e)(f)

Viant Medical Holdings, Inc. (f/k/a MedPlast Holdings Inc.)

2nd Lien Term Loan

13.21% (1M SOFR + 7.75%)

07/02/2026

4,350

4,300

^(f)

VPP Intermediate Holdings, LLC

1st Lien Revolving Loan

12/01/2027

—

^(e)(h)

VPP Intermediate Holdings, LLC

1st Lien Term Loan

10.69% (1M SOFR + 5.25%)

12/01/2027

1,542

^(e)(f)

VPP Intermediate Holdings, LLC

1st Lien Delay Draw Term Loan

10.62% (1M SOFR + 5.25%)

12/01/2027

1,363

^(e)(h)

Waystar Technologies, Inc.

1st Lien Term Loan

8.10% (6M SOFR + 2.75%)

10/22/2029

4,701

^(e)

WSHP FC Acquisition LLC

1st Lien Revolving Loan

11.98% (3M SOFR + 6.50%)

03/30/2028

2,757

2,591

^(e)(h)

WSHP FC Acquisition LLC

1st Lien Term Loan

11.98% (3M SOFR + 6.50%)

03/30/2028

19,265

18,110

^(e)(f)

WSHP FC Acquisition LLC

1st Lien Delay Draw Term Loan

11.98% (3M SOFR + 6.50%)

03/30/2028

6,920

6,504

^(e)(f)

Zelis Cost Management Buyer, Inc.

1st Lien Term Loan

8.09% (1M SOFR + 2.75%)

09/28/2029

5,962

5,956

429,471

11.16

Household and Personal Products

Beacon Wellness Brands, Inc.

1st Lien Revolving Loan

12/22/2027

—

^(e)(g)(h)

Beacon Wellness Brands, Inc.

1st Lien Term Loan

11.69% (1M SOFR + 6.25%)

12/22/2027

1,635

1,569

^(e)(f)(g)

Foundation Consumer Brands, LLC

1st Lien Revolving Loan

10/01/2026

—

^(e)(h)

Foundation Consumer Brands, LLC

1st Lien Term Loan

11.73% (3M SOFR + 6.25%)

02/12/2027

11,811

^(e)(f)

Premier Specialties, Inc.

1st Lien Revolving Loan

12.44% (1M SOFR + 7.00%)

08/20/2027

135

121

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Premier Specialties, Inc.

1st Lien Term Loan

12.44% (1M SOFR + 7.00%)

08/20/2027

3,053

2,748

^(e)(f)

Silk Holdings III Corp.

1st Lien Revolving Loan

9.26% (6M SOFR + 4.00%)

05/01/2029

6,687

6,553

^(e)(h)

Silk Holdings III Corp.

1st Lien Term Loan

10.76% (6M SOFR + 5.50%)

05/01/2029

4,939

4,919

^(e)(f)

27,721

0.72

Insurance

Accession Risk Management Group, Inc.

1st Lien Revolving Loan

11/01/2029

—

^(e)(h)

Accession Risk Management Group, Inc.

1st Lien Term Loan

10.98% (3M SOFR + 5.50%)

11/01/2029

3,849

^(e)(f)

Accession Risk Management Group, Inc.

1st Lien Term Loan

10.98% (3M SOFR + 5.50%)

11/01/2029

^(e)

Accession Risk Management Group, Inc.

1st Lien Delay Draw Term Loan

11.35% (3M SOFR + 6.00%)

11/01/2029

847

^(e)(h)

Acrisure, LLC

1st Lien Term Loan

02/15/2027

8,213

8,201

⁽ⁱ⁾

Acrisure, LLC

1st Lien Term Loan

8.59% (3M SOFR + 3.25%)

11/06/2030

11,752

11,730

Alfred AcquiCo B.V.

Netherlands

1st Lien Term Loan

10.35% (1M EURIBOR + 6.75%)

09/17/2029

€

2,000

2,142

^(e)(f)

Amynta Agency Borrower Inc. and Amynta

1st Lien Term Loan

9.19% (1M SOFR + 3.75%)

02/28/2028

231

Warranty Borrower Inc.

AQ Sunshine, Inc.

1st Lien Revolving Loan

04/15/2027

—

^(e)(h)

AQ Sunshine, Inc.

1st Lien Term Loan

11.73% (3M SOFR + 6.25%)

04/15/2027

7,545

^(e)(f)

AQ Sunshine, Inc.

1st Lien Delay Draw Term Loan

11.73% (3M SOFR + 6.25%)

04/15/2027

8,439

^(e)(h)

Ardonagh Finco B.V. and Ardonagh Finco LLC

United Kingdom

1st Lien Term Loan

9.16% (3M BBSY + 4.75%)

02/17/2031

€

3,053

2,036

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Ardonagh Finco B.V. and Ardonagh Finco LLC

United Kingdom

1st Lien Term Loan

8.67% (6M EURIBOR + 4.75%)

02/17/2031

12,229

13,097

^(e)

Ardonagh Finco B.V. and Ardonagh Finco LLC

United Kingdom

1st Lien Term Loan

10.04% (6M SOFR + 4.75%)

02/17/2031

€

29,029

^(e)(f)

Ardonagh Finco B.V. and Ardonagh Finco LLC

United Kingdom

1st Lien Delay Draw Term Loan

02/17/2031

AUD

—

^(e)(h)

Ardonagh Finco B.V. and Ardonagh Finco LLC

United Kingdom

1st Lien Delay Draw Term Loan

02/17/2031

AUD

—

^(e)(h)

Ardonagh Finco B.V. and Ardonagh Finco LLC

United Kingdom

1st Lien Delay Draw Term Loan

02/17/2031

—

^(e)(h)

Ardonagh Group Finco Pty Ltd

1st Lien Term Loan

02/27/2031

15,000

14,963

^(e)(i)

AssuredPartners, Inc.

1st Lien Term Loan

8.84% (1M SOFR + 3.50%)

02/14/2031

12,601

12,626

Broadstreet Partners, Inc.

1st Lien Term Loan

8.58% (6M SOFR + 3.25%)

06/13/2031

10,906

10,871

Captive Resources Midco, LLC

1st Lien Revolving Loan

07/03/2028

—

^(e)(h)

Captive Resources Midco, LLC

1st Lien Term Loan

10.59% (1M SOFR + 5.25%)

07/01/2029

1,331

^(e)(f)(g)

CFCo, LLC

1st Lien Term Loan

09/13/2038

3,231

—

^(e)(j)

Daylight Beta Parent LLC

1st Lien Term Loan

09/12/2033

1,906

374

^(e)(g)(j)

DOXA Insurance Holdings LLC

1st Lien Revolving Loan

12/20/2029

—

^(e)(h)

DOXA Insurance Holdings LLC

1st Lien Term Loan

10.84% (3M SOFR + 5.50%)

12/20/2030

1,252

1,253

^(e)

DOXA Insurance Holdings LLC

1st Lien Delay Draw Term Loan

10.84% (3M SOFR + 5.50%)

12/20/2030

947

^(e)(h)

Foundation Risk Partners, Corp.

1st Lien Revolving Loan

10/29/2029

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Shares

Amount^(a)

Value^(a)

Assets

Foundation Risk Partners, Corp.

1st Lien Term Loan

10.58% (3M SOFR + 5.25%)

10/29/2030

19,004

^(e)(f)

Foundation Risk Partners, Corp.

1st Lien Delay Draw Term Loan

10.58% (3M SOFR + 5.25%)

10/29/2030

17,836

^(e)(h)

Galway Borrower LLC

1st Lien Revolving Loan

10.69% (3M SOFR + 5.25%)

09/29/2028

157

^(e)(h)

Galway Borrower LLC

1st Lien Term Loan

10.68% (3M SOFR + 5.25%)

09/29/2028

11,936

^(e)(f)

Galway Borrower LLC

1st Lien Delay Draw Term Loan

09/29/2028

—

^(e)(g)(h)

Gestion ABS Bidco Inc./ ABS Bidco Holdings Inc.

Canada

1st Lien Revolving Loan

03/03/2031

CAD

—

^(e)(g)(h)

Gestion ABS Bidco Inc./ ABS Bidco Holdings Inc.

Canada

1st Lien Term Loan

10.27% (3M CDOR+ 5.25%)

03/03/2031

CAD

646

467

^(e)(g)

Gestion ABS Bidco Inc./ ABS Bidco Holdings Inc.

Canada

1st Lien Delay Draw Term Loan

03/03/2031

CAD

—

^(e)(g)(h)

HIG Finance 2 Limited

United Kingdom

1st Lien Term Loan

8.84% (1M SOFR + 3.50%)

02/15/2031

13,142

13,160

Higginbotham Insurance Agency, Inc.

1st Lien Delay Draw Term Loan

10.94% (1M SOFR + 5.50%)

11/24/2028

595

596

^(e)(f)

Higginbotham Insurance Agency, Inc.

1st Lien Delay Draw Term Loan

10.08% (1M SOFR + 4.75%)

11/24/2028

^(e)(h)

High Street Buyer, Inc.

1st Lien Revolving Loan

04/16/2027

—

^(e)(h)

High Street Buyer, Inc.

1st Lien Term Loan

10.58% (3M SOFR + 5.25%)

04/14/2028

4,663

^(e)(f)

High Street Buyer, Inc.

1st Lien Delay Draw Term Loan

10.57% (3M SOFR + 5.25%)

04/14/2028

24,808

^(e)(f)(h)

Hub International Limited

1st Lien Term Loan

8.57% (3M SOFR + 3.25%)

06/20/2030

10,040

10,058

Inszone Mid, LLC

1st Lien Revolving Loan

11/30/2029

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Inszone Mid, LLC

1st Lien Term Loan

11.01% (3M SOFR + 5.75%)

11/30/2029

2,063

^(e)

Inszone Mid, LLC

1st Lien Delay Draw Term Loan

10.98% (3M SOFR + 5.75%)

11/30/2029

734

^(e)(h)

JMG Group Investments Limited

United Kingdom

1st Lien Term Loan

12.11% (3M SONIA + 6.75%)

12/11/2028

312

395

^(e)(f)(g)

JMG Group Investments Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.11% (3M SONIA + 6.75%)

12/11/2028

1,202

1,519

^(e)(g)

JMG Group Investments Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.61% (3M SONIA + 7.25%)

12/11/2028

1,502

1,899

^(e)

JMG Group Investments Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.84% (3M SONIA + 7.50%)

12/11/2028

3,412

4,313

^(e)(g)

JMG Group Investments Limited

United Kingdom

1st Lien Delay Draw Term Loan

11.94% (3M SONIA + 6.63%)

12/11/2028

1,851

2,340

^(e)(h)

Keystone Agency Partners LLC

1st Lien Revolving Loan

05/03/2027

—

^(e)(h)

Keystone Agency Partners LLC

1st Lien Term Loan

10.98% (3M SOFR + 5.50%)

05/03/2027

382

381

^(e)(f)

Keystone Agency Partners LLC

1st Lien Delay Draw Term Loan

10.98% (3M SOFR + 5.50%)

05/03/2027

^(e)(h)

LJo Finco AB

Sweden

1st Lien Revolving Loan

06/12/2030

SEK

—

^(e)(h)

LJo Finco AB

Sweden

1st Lien Term Loan

10.26% (3M STIBOR + 6.50%)

09/12/2030

SEK

86,000

8,114

^(e)

LJo Finco AB

Sweden

1st Lien Delay Draw Term Loan

10.22% (3M STIBOR + 6.50%)

09/12/2030

SEK

3,433

324

^(e)(h)

Lucida Broking Holdings Limited

United Kingdom

1st Lien Term Loan

12.81% (6M SONIA + 7.25%)

06/30/2025

1,000

1,264

^(e)(f)

Lucida Broking Holdings Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.84% (6M SONIA + 7.25%)

06/30/2025

667

843

^(e)(f)

Oakbridge Insurance Agency LLC

1st Lien Revolving Loan

11/01/2029

—

^(e)(h)

Oakbridge Insurance Agency LLC

1st Lien Term Loan

10.83% (1M SOFR + 5.50%)

11/01/2029

1,287

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Oakbridge Insurance Agency LLC

1st Lien Delay Draw Term Loan

11/01/2029

—

^(e)(h)

OneDigital Borrower LLC

1st Lien Term Loan

06/13/2031

7,550

7,517

⁽ⁱ⁾

Optio Group Limited

United Kingdom

1st Lien Delay Draw Term Loan

11.80% (6M SONIA + 6.25%)

03/16/2026

360

455

^(e)(f)

Optio Group Limited

United Kingdom

1st Lien Delay Draw Term Loan

10.19% (6M EURIBOR + 6.25%)

03/16/2026

280

354

^(e)(g)

Patriot Growth Insurance Services, LLC

1st Lien Revolving Loan

10/16/2028

—

^(e)(h)

Patriot Growth Insurance Services, LLC

1st Lien Term Loan

10.98% (3M SOFR + 5.50%)

10/16/2028

1,770

^(e)(f)

People Corporation

Canada

1st Lien Revolving Loan

02/18/2027

CAD

—

^(e)(h)

People Corporation

Canada

1st Lien Term Loan

11.52% (3M CDOR + 6.25%)

02/18/2028

CAD

6,986

5,106

^(e)(f)

People Corporation

Canada

1st Lien Delay Draw Term Loan

11.52% (3M CDOR + 6.25%)

02/18/2028

CAD

2,280

1,667

^(e)

People Corporation

Canada

1st Lien Delay Draw Term Loan

11.02% (3M CDOR + 5.75%)

02/18/2028

CAD

4,052

2,962

^(e)

People Corporation

Canada

1st Lien Delay Draw Term Loan

11.27% (3M CDOR + 6.00%)

02/18/2028

CAD

1,293

945

^(e)(h)

Platinum Credit Bidco Limited

Jersey

1st Lien Term Loan

11.82% (6M SONIA + 6.50%)

11/09/2029

27,960

35,344

^(e)(f)

Project Hammond Bidco Limited

United Kingdom

1st Lien Term Loan

10.57% (3M SONIA + 5.25%)

12/04/2028

1,750

2,212

^(e)(f)(g)

Project Hammond Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

10.55% (3M SONIA + 5.25%)

12/04/2028

1,750

2,212

^(e)(g)

Project Hammond Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

11.17% (3M SONIA + 5.75%)

12/04/2028

4,274

5,403

^(e)(g)

SageSure Holdings, LLC

1st Lien Term Loan

11.35% (3M SOFR + 5.75%)

01/28/2028

5,505

^(e)(g)

SageSure Holdings, LLC

1st Lien Delay Draw Term Loan

11.35% (3M SOFR + 5.75%)

01/28/2028

^(e)(g)(h)

SCM Insurance Services Inc.

Canada

1st Lien Revolving Loan

08/29/2025

CAD

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

SCM Insurance Services Inc.

Canada

1st Lien Term Loan

11.22% (3M CDOR + 6.25%)

08/29/2025

CAD

215

157

^(e)(f)

SelectQuote, Inc.

1st Lien Term Loan

14.94% (1M SOFR + 9.50%)

05/15/2025

6,997

6,437

^(e)(g)

Seventeen Group Limited

United Kingdom

1st Lien Term Loan

12.02% (3M SONIA + 6.50%)

07/26/2028

455

574

^(e)(f)(g)

Seventeen Group Limited

United Kingdom

1st Lien Delay Draw Term Loan

11.86% (3M SONIA + 6.50%)

07/26/2028

200

253

^(e)(g)(h)

SG Acquisition, Inc.

1st Lien Revolving Loan

04/03/2030

—

^(e)(h)

SG Acquisition, Inc.

1st Lien Term Loan

10.30% (6M SOFR + 5.00%)

04/03/2030

5,806

5,748

^(e)(f)

Spitfire Bidco Limited

United Kingdom

1st Lien Term Loan

12.99% (6M SOFR + 7.25%)

09/28/2029

14,960

^(e)(f)

Spitfire Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

13.06% (6M SOFR + 7.25%)

09/28/2029

668

845

^(e)(h)

Spring Insurance Solutions, LLC

1st Lien Term Loan

11.98% (3M SOFR + 6.50%)

11/24/2025

3,410

3,103

^(e)(f)

Spring Insurance Solutions, LLC

1st Lien Delay Draw Term Loan

11.98% (3M SOFR + 6.50%)

11/24/2025

581

528

^(e)

Staysure Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.63% (3M SONIA + 7.25%)

07/01/2025

1,000

1,264

^(e)

Truist Insurance Holdings, LLC

1st Lien Revolving Loan

8.58% (1M SOFR + 3.25%)

05/06/2029

^(e)(h)

Truist Insurance Holdings, LLC

1st Lien Term Loan

8.58% (3M SOFR + 3.25%)

05/06/2031

300

USI, Inc.

1st Lien Term Loan

8.08% (6M SOFR + 2.75%)

11/22/2029

7,096

7,091

USI, Inc.

1st Lien Term Loan

8.08% (3M SOFR + 2.75%)

09/27/2030

8,994

8,990

World Insurance Associates, LLC

1st Lien Revolving Loan

04/03/2028

—

^(e)(h)

World Insurance Associates, LLC

1st Lien Delay Draw Term Loan

04/03/2028

—

^(e)(h)

379,718

9.86

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Materials

Anchor Packaging LLC

1st Lien Term Loan

9.09% (1M SOFR + 3.75%)

07/18/2029

7,217

7,212

Aruba Investments, Inc.

2nd Lien Term Loan

13.19% (1M SOFR + 7.75%)

11/24/2028

5,200

4,937

ASP-r-pac Acquisition Co LLC

1st Lien Revolving Loan

11.44% (1M SOFR + 6.00%)

12/29/2027

344

340

^(e)(h)

ASP-r-pac Acquisition Co LLC

1st Lien Term Loan

11.59% (3M SOFR + 6.00%)

12/29/2027

6,104

6,043

^(e)(f)

BW Holding, Inc.

1st Lien Term Loan

9.50% (3M SOFR + 4.00%)

12/14/2028

1,363

1,246

Charter Next Generation, Inc.

1st Lien Term Loan

8.84% (1M SOFR + 3.50%)

12/01/2027

9,857

9,868

Flexsys Holdings, Inc.

1st Lien Term Loan

11.12% (3M SOFR + 5.25%)

11/01/2028

7,387

6,981

Meyer Laboratory, LLC

1st Lien Revolving Loan

02/28/2030

—

^(e)(h)

Meyer Laboratory, LLC

1st Lien Term Loan

10.84% (1M SOFR+ 5.50%)

02/28/2030

665

652

^(e)(f)

Meyer Laboratory, LLC

1st Lien Delay Draw Term Loan

02/28/2030

—

^(e)(h)

Nelipak Holding Company

1st Lien Revolving Loan

10.84% (1M SOFR + 5.50%)

03/26/2031

123

121

^(e)(g)(h)

Nelipak Holding Company

1st Lien Revolving Loan

9.18% (1M EURIBOR + 5.50%)

03/26/2031

€

^(e)(g)(h)

Nelipak Holding Company

1st Lien Term Loan

10.83% (3M SOFR + 5.50%)

03/26/2031

989

974

^(e)(f)(g)

Nelipak Holding Company

1st Lien Term Loan

9.22% (3M EURIBOR + 5.50%)

03/26/2031

€

1,896

2,001

^(e)(f)(g)

Nelipak Holding Company

1st Lien Delay Draw Term Loan

03/26/2031

—

^(e)(g)(h)

Nelipak Holding Company

1st Lien Delay Draw Term Loan

03/26/2031

—

^(e)(g)(h)

Novipax Buyer, L.L.C.

1st Lien Term Loan

13.69% (1M SOFR + 8.25%)

12/01/2026

4,282

3,939

^(e)(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Plaskolite PPC Intermediate II LLC

1st Lien Term Loan

9.46% (1M SOFR + 4.00%)

12/15/2025

8,246

8,019

^(f)

Plaskolite PPC Intermediate II LLC

2nd Lien Term Loan

12.69% (1M SOFR + 7.25%)

12/14/2026

2,960

2,901

^(e)(f)

Polymer Solutions Group, LLC

1st Lien Term Loan

9.47% (3M SOFR + 4.25%)

11/26/2026

642

^(e)(f)

Precision Concepts Canada Corporation

Canada

1st Lien Term Loan

11.68% (3M SOFR + 6.25%)

01/12/2026

617

^(e)(f)

Precision Concepts International LLC

1st Lien Revolving Loan

13.75% (3M PRIME + 5.25%)

01/12/2026

^(e)(h)

Precision Concepts International LLC

1st Lien Term Loan

11.68% (3M SOFR + 6.25%)

01/12/2026

4,794

4,795

^(e)(f)

Pregis TopCo LLC

1st Lien Term Loan

9.34% (1M SOFR + 4.00%)

07/31/2026

16,681

16,673

Pretium PKG Holdings, Inc.

1st Lien Term Loan

10.33% (3M SOFR + 5.00%)

10/02/2028

1,887

1,936

Pretium PKG Holdings, Inc.

1st Lien Term Loan

9.93% (3M SOFR + 4.60%)

10/02/2028

10,908

9,435

^(g)

Reagent Chemical & Research, LLC

1st Lien Revolving Loan

04/30/2030

—

^(e)(h)

Reagent Chemical & Research, LLC

1st Lien Term Loan

10.58% (1M SOFR + 5.25%)

04/30/2031

2,860

2,803

^(e)

Trident TPI Holdings, Inc.

1st Lien Term Loan

9.32% (3M SOFR + 4.00%)

09/15/2028

21,382

21,406

Vobev, LLC

1st Lien Revolving Loan

04/20/2028

^(e)(h)(j)

Vobev, LLC

1st Lien Term Loan

04/20/2028

12,745

10,068

^(e)(g)(j)

Vobev, LLC

1st Lien Delay Draw Term Loan

04/20/2028

5,293

4,182

^(e)(g)(h)(j)

127,872

3.32

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Media and Entertainment

3 Step Sports LLC

1st Lien Revolving Loan

10/02/2028

—

^(e)(h)

3 Step Sports LLC

1st Lien Term Loan

13.33% (3M SOFR + 8.00%)

10/02/2029

1,933

1,837

^(e)(g)

3 Step Sports LLC

1st Lien Delay Draw Term Loan

13.35% (3M SOFR + 8.00%)

10/02/2029

220

209

^(e)(g)(h)

Aventine Intermediate LLC

1st Lien Term Loan

11.43% (3M SOFR + 6.00%)

06/18/2027

2,224

2,179

^(e)(f)(g)

Aventine Intermediate LLC

1st Lien Delay Draw Term Loan

11.43% (3M SOFR + 6.00%)

06/18/2027

880

863

^(e)(g)

AVSC Holding Corp.

1st Lien Term Loan

8.94% (1M SOFR + 3.50%)

03/03/2025

12,023

11,911

^(g)

AVSC Holding Corp.

1st Lien Term Loan

10.94% (1M SOFR + 5.50%)

10/15/2026

7,238

7,223

^(g)

AVSC Holding Corp.

2nd Lien Term Loan

09/01/2025

3,024

2,965

⁽ⁱ⁾

Broadcast Music, Inc.

1st Lien Revolving Loan

02/08/2030

—

^(e)(h)

Broadcast Music, Inc.

1st Lien Term Loan

11.07% (3M SOFR + 5.75%)

02/08/2030

2,924

^(e)(f)

Creative Artists Agency, LLC

1st Lien Term Loan

8.59% (1M SOFR + 3.25%)

11/27/2028

7,910

7,940

The E.W. Scripps Company

1st Lien Term Loan

8.02% (1M SOFR + 2.56%)

05/01/2026

2,511

2,357

Fever Labs, Inc.

1st Lien Revolving Loan

11/08/2028

—

^(e)(h)

Fever Labs, Inc.

1st Lien Term Loan

0.11

11/08/2028

3,815

3,739

^(e)

Fever Labs, Inc.

1st Lien Delay Draw Term Loan

11/08/2028

—

^(e)(h)

Global Music Rights, LLC

1st Lien Revolving Loan

08/27/2029

—

^(e)(h)

Global Music Rights, LLC

1st Lien Term Loan

10.89% (3M SOFR + 5.50%)

08/27/2030

7,773

^(e)(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Gray Television, Inc.

1st Lien Term Loan

8.44% (1M SOFR + 3.00%)

12/01/2028

4,002

3,598

MailSouth, Inc.

1st Lien Term Loan

04/23/2024

1,957

—

^(e)(j)

NEP Group, Inc.

1st Lien Term Loan

8.71% (1M SOFR + 3.25%)

08/19/2026

12,128

11,425

NEP Group, Inc.

1st Lien Term Loan

9.46% (1M SOFR + 4.00%)

08/19/2026

7,284

6,902

^(e)

Production Resource Group, LLC

1st Lien Term Loan

19.25% (3M SOFR + 8.50%)

08/21/2029

896

^(e)(g)

Production Resource Group, LLC

1st Lien Delay Draw Term Loan

13.56% (1M SOFR + 8.13%)

08/21/2029

989

^(e)(g)

Professional Fighters League, LLC

1st Lien Term Loan

14.00%

01/20/2026

712

^(e)(g)

Professional Fighters League, LLC

2nd Lien Delay Draw Term Loan

16.00%

01/20/2026

^(e)(g)

Storm Investment S.a.r.l.

Luxembourg

1st Lien Term Loan

3.75%

06/22/2029

€

9,193

9,846

^(e)

Summer (BC) Bidco B LLC

1st Lien Term Loan

10.59% (3M SOFR + 5.00%)

02/15/2029

2,969

2,976

Univision Communications Inc

1st Lien Term Loan

8.71% (1M SOFR + 3.25%)

03/15/2026

5,751

Univision Communications Inc

1st Lien Term Loan

8.93% (3M SOFR + 3.50%)

06/24/2027

2,919

2,897

Univision Communications Inc

1st Lien Term Loan

9.58% (3M SOFR + 4.25%)

06/24/2029

713

712

WideOpenWest Finance, LLC

1st Lien Term Loan

8.33% (3M SOFR + 3.00%)

12/20/2028

1,995

1,771

William Morris Endeavor Entertainment, LLC (IMG Worldwide Holdings, LLC)

1st Lien Term Loan

8.21% (1M SOFR + 2.75%)

05/18/2025

23,031

23,048

123,450

3.21

Pharmaceuticals, Biotechnology and Life Sciences

ADMA BIOLOGICS, INC.

1st Lien Revolving Loan

9.05% (3M SOFR + 3.75%)

12/20/2027

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

ADMA BIOLOGICS, INC.

1st Lien Term Loan

11.84% (3M SOFR + 6.50%)

12/20/2027

900

^(e)(f)

AI Sirona (Luxembourg) Acquisition S.a.r.l.

Luxembourg

1st Lien Term Loan

7.65% (1M EURIBOR + 4.00%)

09/30/2028

€

7,000

7,493

Alcami Corporation

1st Lien Revolving Loan

12/21/2028

—

_—

^(e)(h)

Alcami Corporation

1st Lien Term Loan

12.49% (3M SOFR + 7.00%)

12/21/2028

203

^(e)

Alcami Corporation

1st Lien Delay Draw Term Loan

12.49% (3M SOFR + 7.00%)

12/21/2028

^(e)

ASPIRE BIDCO LIMITED

Jersey

1st Lien Term Loan

12.22% (3M SONIA + 6.90%)

09/04/2028

7,777

9,831

^(e)(f)(g)

ASPIRE BIDCO LIMITED

Jersey

1st Lien Delay Draw Term Loan

12.22% (3M SONIA + 6.90%)

09/04/2028

647

818

^(e)(g)(h)

Bamboo US BidCo LLC

1st Lien Revolving Loan

10/01/2029

—

_—

^(e)(h)

Bamboo US BidCo LLC

1st Lien Term Loan

12.08% (3M SOFR + 6.75%)

09/30/2030

2,635

^(e)(g)

Bamboo US BidCo LLC

1st Lien Term Loan

10.62% (3M EURIBOR + 6.75%)

09/30/2030

€

2,110

2,260

^(e)(g)

Bamboo US BidCo LLC

1st Lien Delay Draw Term Loan

12.08% (3M SOFR + 6.75%)

09/30/2030

^(e)(g)(h)

Cambrex Corporation

1st Lien Term Loan

8.94% (1M SOFR + 3.50%)

12/04/2026

8,480

8,347

Catalent Pharma Solutions, Inc.

1st Lien Term Loan

8.34% (1M SOFR + 3.00%)

02/22/2028

6,000

^(e)

Cheplapharm Arzneimittel GmbH

Germany

1st Lien Term Loan

7.91% (3M EURIBOR + 4.00%)

02/22/2029

€

6,875

7,349

Cobalt Buyer Sub, Inc.

1st Lien Revolving Loan

11.46% (1M SOFR + 6.00%)

10/01/2027

576

^(e)(h)

Cobalt Buyer Sub, Inc.

1st Lien Term Loan

11.46% (1M SOFR + 6.00%)

10/02/2028

7,241

^(e)(f)

Cobalt Buyer Sub, Inc.

1st Lien Term Loan

11.46% (1M SOFR + 6.00%)

10/02/2028

2,511

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Cobalt Buyer Sub, Inc.

1st Lien Delay Draw Term Loan

11.46% (1M SOFR + 6.00%)

10/02/2028

2,428

^(e)

Curia Global, Inc.

1st Lien Term Loan

9.18% (3M SOFR + 3.75%)

08/30/2026

13,194

12,404

Grifols Worldwide Operations USA, Inc.

1st Lien Term Loan

7.44% (1M SOFR + 2.00%)

11/15/2027

8,674

8,521

NMC Skincare Intermediate Holdings II, LLC

1st Lien Revolving Loan

11.44% (1M SOFR + 6.00%)

11/02/2026

154

142

^(e)(h)

NMC Skincare Intermediate Holdings II, LLC

1st Lien Revolving Loan

11.42% (1M SOFR + 6.00%)

11/02/2026

^(e)

NMC Skincare Intermediate Holdings II, LLC

1st Lien Term Loan

11.43% (1M SOFR + 6.00%)

11/02/2026

2,194

2,018

^(e)(f)(g)

NMC Skincare Intermediate Holdings II, LLC

1st Lien Delay Draw Term Loan

11.43% (1M SOFR + 6.00%)

11/02/2026

618

568

^(e)(g)

North American Science Associates, LLC

1st Lien Revolving Loan

10.00% (3M SOFR + 4.50%)

03/15/2027

2,083

^(e)(h)

North American Science Associates, LLC

1st Lien Term Loan

11.24% (3M SOFR + 5.75%)

09/15/2027

11,575

^(e)(f)

North American Science Associates, LLC

1st Lien Delay Draw Term Loan

11.24% (3M SOFR + 5.75%)

09/15/2027

1,877

^(e)(f)

Packaging Coordinators Midco, Inc.

1st Lien Term Loan

8.58% (3M SOFR + 3.25%)

11/30/2027

14,680

14,717

Solar Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

9.47% (3M EURIBOR + 5.75%)

11/23/2029

2,226

2,814

^(e)(g)(h)

Verista, Inc.

1st Lien Revolving Loan

11.60% (3M SOFR + 6.00%)

02/16/2027

167

162

^(e)(h)

Verista, Inc.

1st Lien Term Loan

12.11% (3M SOFR + 6.50%)

02/16/2027

8,872

8,606

^(e)(f)(g)

Verista, Inc.

1st Lien Delay Draw Term Loan

12.10% (3M SOFR + 6.50%)

02/16/2027

1,827

1,772

^(e)

WCG Intermediate Corp.

1st Lien Term Loan

8.84% (1M SOFR + 3.50%)

01/08/2027

8,087

8,085

WCI-BXC Purchaser, LLC

1st Lien Revolving Loan

11/06/2029

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

WCI-BXC Purchaser, LLC

1st Lien Term Loan

11.59% (3M SOFR + 6.25%)

11/06/2030

764

^(e)

134,797

3.50

Real Estate Management and Development

285 Mezz LLC

1st Lien Delay Draw Term Loan

12/31/2025

4,972

3,757

^(e)(j)

285 Schermerhorn LLC

1st Lien Delay Draw Term Loan

12/31/2025

4,958

3,746

^(e)(h)(j)

Forest City Enterprises, L.P.

1st Lien Term Loan

8.96% (1M SOFR + 3.50%)

12/08/2025

3,000

2,779

Odevo AB

Sweden

1st Lien Term Loan

10.14% (3M STIBOR + 6.13%)

12/21/2028

€

6,948

7,441

^(e)(f)

Odevo AB

Sweden

1st Lien Delay Draw Term Loan

11.51% (3M SONIA + 6.13%)

12/21/2028

€

10,285

11,014

^(e)

Odevo AB

Sweden

1st Lien Delay Draw Term Loan

11.85% (3M SOFR + 6.38%)

12/21/2028

€

7,544

8,079

^(e)(h)

Odevo AB

Sweden

1st Lien Delay Draw Term Loan

12/21/2028

—

^(e)(g)(h)(i)

36,816

0.96

Software and Services

Access CIG, LLC

1st Lien Term Loan

10.33% (3M SOFR + 5.00%)

08/18/2028

11,154

11,207

ACTFY Buyer, Inc.

1st Lien Revolving Loan

05/01/2030

—

^(e)(h)

ACTFY Buyer, Inc.

1st Lien Term Loan

10.58% (6M SOFR + 5.25%)

05/01/2031

1,510

1,480

^(e)

ACTFY Buyer, Inc.

1st Lien Delay Draw Term Loan

05/01/2031

—

^(e)(h)

Activate holdings (US) Corp.

1st Lien Revolving Loan

07/27/2029

—

^(e)(h)

Activate holdings (US) Corp.

1st Lien Term Loan

11.58% (3M SOFR + 6.25%)

07/29/2030

10,968

^(e)

AffiniPay Midco, LLC

1st Lien Revolving Loan

06/09/2028

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

AffiniPay Midco, LLC

1st Lien Term Loan

10.82% (3M SOFR + 5.50%)

06/09/2028

18,907

^(e)(f)

AffiniPay Midco, LLC

1st Lien Term Loan

10.84% (1M SOFR + 5.50%)

06/09/2028

295

^(e)

AffiniPay Midco, LLC

1st Lien Delay Draw Term Loan

10.84% (1M SOFR + 5.50%)

06/09/2028

1,331

^(e)

Anaplan, Inc.

1st Lien Revolving Loan

06/21/2028

—

^(e)(h)

Anaplan, Inc.

1st Lien Term Loan

11.08% (3M SOFR + 5.75%)

06/21/2029

5,991

^(e)(f)

Anaplan, Inc.

1st Lien Term Loan

11.08% (6M SOFR + 5.75%)

06/21/2029

1,136

^(e)

Anaqua Parent Holdings, Inc.

1st Lien Revolving Loan

10/10/2025

—

^(e)(h)

Anaqua Parent Holdings, Inc.

1st Lien Term Loan

9.36% (6M EURIBOR + 5.50%)

04/10/2026

€

650

696

^(e)

Anaqua Parent Holdings, Inc.

1st Lien Term Loan

10.81% (3M SOFR + 5.25%)

04/10/2026

1,754

^(e)(f)

Anaqua Parent Holdings, Inc.

1st Lien Term Loan

10.81% (6M SOFR + 5.25%)

04/10/2026

1,946

^(e)(f)(g)

Anaqua Parent Holdings, Inc.

1st Lien Delay Draw Term Loan

10.76% (6M SOFR + 5.25%)

04/10/2026

279

^(e)(g)

APG Intermediate Holdings Corporation

1st Lien Revolving Loan

01/03/2025

—

^(e)(h)

APG Intermediate Holdings Corporation

1st Lien Term Loan

10.73% (3M SOFR + 5.25%)

01/03/2025

972

^(e)

APG Intermediate Holdings Corporation

1st Lien Delay Draw Term Loan

10.69% (1M SOFR + 5.25%)

01/03/2025

^(e)

Aptean, Inc.

1st Lien Revolving Loan

01/30/2031

—

^(e)(h)

Aptean, Inc.

1st Lien Term Loan

10.59% (1M SOFR + 5.25%)

01/30/2031

2,279

2,256

^(e)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Company

Country^(a)

Investment

Interest

Maturity
Date

Acquisition
Date

Principal
Amount^(a)

Fair
Value^(a)

% of Net
Assets

Aptean, Inc.

1st Lien Delay Draw Term Loan

10.59% (1M SOFR + 5.25%)

01/30/2031

^(e)(h)

Artifact Bidco, Inc.

1st Lien Revolving Loan

05/22/2030

—

^(e)(g)(h)(i)

Artifact Bidco, Inc.

1st Lien Delay Draw Term Loan

05/22/2031

—

^{(e)(f)(g)(h)(i)}

Asurion, LLC

1st Lien Term Loan

8.71% (1M SOFR + 3.25%)

12/23/2026

6,686

6,625

Asurion, LLC

1st Lien Term Loan

8.71% (1M SOFR + 3.25%)

07/31/2027

3,496

3,432

Asurion, LLC

2nd Lien Term Loan

10.71% (1M SOFR + 5.25%)

01/20/2029

5,000

4,599

Avaya Inc.

1st Lien Term Loan

13.84% (1M SOFR + 8.50%)

08/01/2028

8,103

6,962

^(g)

Bamboo Health Holdings, LLC

1st Lien Revolving Loan

12.48% (3M SOFR + 7.00%)

05/06/2027

^(e)(h)

Bamboo Health Holdings, LLC

1st Lien Term Loan

12.48% (3M SOFR + 7.00%)

05/06/2027

2,869

^(e)

Banyan Software Holdings, LLC

1st Lien Revolving Loan

10.84% (1M SOFR + 5.50%)

10/30/2026

^(e)(h)

Banyan Software Holdings, LLC

1st Lien Term Loan

12.44% (1M SOFR + 7.00%)

10/30/2026

3,467

^(e)(f)

Banyan Software Holdings, LLC

1st Lien Delay Draw Term Loan

12.44% (1M SOFR + 7.00%)

10/30/2026

5,028

^(e)(f)

Banyan Software Holdings, LLC

1st Lien Delay Draw Term Loan

12.69% (1M SOFR + 7.25%)

10/30/2026

248

^(e)

Banyan Software Holdings, LLC

1st Lien Delay Draw Term Loan

11.59% (1M SOFR + 6.25%)

10/30/2026

162

^(e)(h)

BCTO IGNITION PURCHASER, INC.

1st Lien Term Loan

14.33% (3M SOFR + 9.00%)

10/19/2030

921

^(e)

BEP Intermediate Holdco, LLC

1st Lien Term Loan

9.09% (1M SOFR + 3.75%)

04/25/2031

3,080

3,088

^(e)

BigHand UK Bidco Limited

United Kingdom

1st Lien Term Loan

0.0625

06/25/2030

2,286

2,544

^(e)(g)

Bobcat Purchaser, LLC

1st Lien Revolving Loan

06/17/2030

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

1Bobcat Purchaser, LLC

1st Lien Term Loan

10.09% (3M SOFR + 4.75%)

06/17/2030

2,947

^(e)

Bobcat Purchaser, LLC

1st Lien Delay Draw Term Loan

10.09% (3M SOFR + 4.75%)

06/17/2030

997

996

^(e)

Bottomline Technologies, Inc. and Legal Spend Holdings, LLC

1st Lien Revolving Loan

05/15/2028

—

^(e)(h)

Bottomline Technologies, Inc. and Legal Spend Holdings, LLC

1st Lien Term Loan

10.59% (1M SOFR + 5.25%)

05/14/2029

17,893

^(e)(f)

Bottomline Technologies, Inc. and Legal Spend Holdings, LLC

1st Lien Term Loan

11.09% (1M SOFR + 5.75%)

05/14/2029

730

^(e)

Businessolver.com, Inc.

1st Lien Term Loan

10.93% (3M SOFR + 5.50%)

12/01/2027

4,206

^(e)(f)

Businessolver.com, Inc.

1st Lien Delay Draw Term Loan

10.93% (3M SOFR + 5.50%)

12/01/2027

148

^(e)(h)

Capnor Connery Denmark Bidco A/S

1st Lien Term Loan

10.52% (1M EURIBOR + 6.88%)

04/30/2026

€

2,954

3,164

^(e)(f)

Capnor Connery Denmark Bidco A/S

1st Lien Term Loan

10.60% (1M STIBOR + 6.88%)

04/30/2026

SEK

4,210

397

^(e)(f)

Capnor Connery Denmark Bidco A/S

1st Lien Term Loan

11.51% (1M NIBOR + 6.88%)

04/30/2026

NOK

2,551

239

^(e)(f)

Capnor Connery Denmark Bidco A/S

1st Lien Delay Draw Term Loan

10.48% (1M CIBOR + 6.88%)

04/30/2026

DKK

12,810

1,840

^(e)(f)

Cardinal Parent, Inc.

1st Lien Revolving Loan

11/12/2025

—

^(e)(h)

Cardinal Parent, Inc.

1st Lien Term Loan

9.98% (3M SOFR + 4.50%)

11/12/2027

3,342

3,126

Cardinal Parent, Inc.

2nd Lien Term Loan

13.23% (3M SOFR + 7.75%)

11/13/2028

9,269

8,898

^(e)(f)

CC Globe Holding II A/S

Denmark

1st Lien Term Loan

10.88% (3M CIBOR + 7.25%)

03/31/2028

19,796

2,644

^(e)(f)(g)

CC Globe Holding II A/S

Denmark

1st Lien Term Loan

11.33% (6M CIBOR + 7.50%)

03/31/2028

18,316

2,446

^(e)(g)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

CC Globe Holding II A/S

Denmark

1st Lien Delay Draw Term Loan

10.88% (3M CIBOR + 7.25%)

03/31/2028

11,149

1,489

^(e)(g)(h)

CCC Intelligent Solutions Inc.

1st Lien Term Loan

7.71% (1M SOFR + 2.25%)

09/21/2028

1,914

1,913

CentralSquare Technologies, LLC

1st Lien Revolving Loan

04/12/2030

—

^(e)(h)

CentralSquare Technologies, LLC

1st Lien Term Loan

11.83% (1M SOFR + 6.50%)

04/12/2030

30,116

29,363

^(e)(f)(g)

Cloud Software Group, Inc.

1st Lien Revolving Loan

09/30/2027

—

^(e)(h)

Cloud Software Group, Inc.

1st Lien Term Loan

9.33% (3M SOFR + 4.00%)

03/30/2029

47,964

47,899

^(f)

Cloud Software Group, Inc.

1st Lien Term Loan

9.83% (3M SOFR + 4.50%)

03/21/2031

159

160

Compusoft US LLC

1st Lien Term Loan

11.23% (3M SOFR + 5.75%)

05/26/2028

2,542

^(e)

Confirmasoft AB

Sweden

1st Lien Delay Draw Term Loan

10.77% (3M STIBOR + 6.75%)

06/03/2027

€

1,502

1,609

^(e)(h)

Confirmasoft AB

Sweden

1st Lien Delay Draw Term Loan

10.52% (3M EURIBOR + 6.75%)

06/03/2027

€

1,995

2,136

^(e)(f)

Confirmasoft AB

Sweden

1st Lien Delay Draw Term Loan

10.95% (3M STIBOR + 7.00%)

06/03/2027

€

1,120

1,199

^(e)(h)

Conscia Nederland B.V.

Denmark

1st Lien Term Loan

10.48% (1M CIBOR + 6.88%)

04/30/2026

9,255

1,329

^(e)(f)

Conscia Nederland B.V.

Denmark

1st Lien Delay Draw Term Loan

10.52% (1M EURIBOR + 6.88%)

04/30/2026

12,324

1,770

^(e)(h)

Conservice Midco, LLC

1st Lien Term Loan

9.34% (1M SOFR + 4.00%)

05/13/2027

5,584

Conservice Midco, LLC

2nd Lien Term Loan

12.34% (1M SOFR +7.00%)

05/15/2028

13,905

^(e)(f)

Consilio Midco Limited

United Kingdom

1st Lien Revolving Loan

11.23% (3M SOFR + 5.75%)

05/26/2028

^(e)(h)

Consilio Midco Limited

United Kingdom

1st Lien Revolving Loan

9.95% (6M EURIBOR +6.25%)

05/26/2028

121

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Consilio Midco Limited

United Kingdom

1st Lien Revolving Loan

10.98% (3M SOFR + 5.50%)

05/26/2028

€

119

^(e)(h)

Consilio Midco Limited

United Kingdom

1st Lien Term Loan

11.23% (3M SOFR + 5.75%)

05/26/2028

8,361

8,362

^(e)(f)

Consilio Midco Limited

United Kingdom

1st Lien Term Loan

9.95% (3M EURIBOR +6.25%)

05/26/2028

€

2,109

2,258

^(e)(f)

Consilio Midco Limited

United Kingdom

1st Lien Delay Draw Term Loan

9.95% (3M EURIBOR +6.25%)

05/26/2028

€

176

188

^(e)

Consilio Midco Limited

United Kingdom

1st Lien Delay Draw Term Loan

05/26/2028

—

^(e)(h)

Cority Software (USA) Inc.

1st Lien Term Loan

10.30% (3M SOFR + 5.00%)

07/02/2026

1,593

^(e)(f)

Cority Software (USA) Inc.

1st Lien Term Loan

12.30% (3M SOFR + 7.00%)

07/02/2026

135

^(e)(f)

Cority Software (USA) Inc.

1st Lien Term Loan

11.05% (3M SOFR + 5.75%)

07/02/2026

898

^(e)

Cority Software Inc.

Canada

1st Lien Revolving Loan

07/02/2025

—

^(e)(h)

Cority Software Inc.

Canada

1st Lien Term Loan

10.30% (3M SOFR +5.00%)

07/02/2026

1,820

1,819

^(e)(f)

Cornerstone OnDemand, Inc.

1st Lien Revolving Loan

8.69% (1M SOFR + 3.25%)

10/15/2026

^(e)(h)

Cornerstone OnDemand, Inc.

1st Lien Term Loan

9.21% (1M SOFR + 3.75%)

10/16/2028

219

207

Cornerstone OnDemand, Inc.

2nd Lien Term Loan

11.96% (1M SOFR +6.50%)

10/15/2029

17,522

16,470

^(e)

Coupa Holdings, LLC

1st Lien Revolving Loan

02/27/2029

—

^(e)(h)

Coupa Holdings, LLC

1st Lien Term Loan

10.83% (3M SOFR + 5.50%)

02/27/2030

229

^(e)

Coupa Holdings, LLC

1st Lien Delay Draw Term Loan

02/27/2030

—

^(e)(h)

DCert Buyer, Inc.

1st Lien Term Loan

9.34% (1M SOFR + 4.00%)

10/16/2026

10,761

10,476

^(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

DCert Buyer, Inc.

2nd Lien Term Loan

12.34% (1M SOFR + 7.00%)

02/16/2029

5,691

5,577

^(e)(f)

Denali Holdco LLC

1st Lien Revolving Loan

09/15/2027

—

^(e)(h)

Denali Holdco LLC

1st Lien Term Loan

10.93% (1M SOFR +5.50%)

09/15/2027

4,121

^(e)(f)

Denali Holdco LLC

1st Lien Delay Draw Term Loan

10.93% (1M SOFR + 5.50%)

09/15/2027

^(e)(h)

Diligent Corporation

1st Lien Revolving Loan

08/02/2030

—

^(e)(h)

Diligent Corporation

1st Lien Term Loan

10.34% (1M SOFR + 5.00%)

08/02/2030

6,978

6,926

^(e)(f)

Diligent Corporation

1st Lien Term Loan

10.34% (1M SOFR + 5.00%)

08/02/2030

1,196

1,187

^(e)(f)(g)

Diligent Corporation

1st Lien Delay Draw Term Loan

08/02/2030

—

^(e)(h)

Doxim Inc.

1st Lien Term Loan

13.44% (1M SOFR + 8.00%)

05/31/2026

6,138

^(e)(f)

Doxim Inc.

1st Lien Term Loan

12.44% (1M SOFR + 7.00%)

05/31/2026

807

^(e)(f)

Doxim Inc.

1st Lien Term Loan

12.19% (1M SOFR + 6.75%)

05/31/2026

3,336

^(e)(f)

Doxim Inc.

1st Lien Last Out Term Loan

11.84% (1M SOFR + 6.40%)

05/31/2026

710

^(e)(f)

Doxim Inc.

1st Lien Last Out Delay Draw Term Loan

11.84% (1M SOFR + 6.40%)

05/31/2026

325

^(e)

DS Admiral Bidco, LLC

1st Lien Term Loan

06/24/2031

2,500

2,475

^(e)(i)

Echo Purchaser, Inc.

1st Lien Revolving Loan

11/19/2029

—

^(e)(g)(h)

Echo Purchaser, Inc.

1st Lien Term Loan

10.84% (1M SOFR + 5.50%)

11/19/2029

1,836

^(e)(g)

Echo Purchaser, Inc.

1st Lien Delay Draw Term Loan

11/19/2029

—

^(e)(g)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Edmunds GovTech, Inc.

1st Lien Revolving Loan

9.33% (3M SOFR + 4.00%)

02/26/2030

^(e)(h)

Edmunds GovTech, Inc.

1st Lien Term Loan

10.83% (3M SOFR + 5.50%)

02/26/2031

333

327

^(e)

Edmunds GovTech, Inc.

1st Lien Delay Draw Term Loan

02/26/2031

—

^(e)(h)

Elemica Parent, Inc.

1st Lien Revolving Loan

10.98% (3M SOFR + 5.50%)

09/18/2026

996

^(e)(h)

Elemica Parent, Inc.

1st Lien Term Loan

10.94% (1M SOFR + 5.50%)

09/18/2026

3,614

^(e)(f)

Elemica Parent, Inc.

1st Lien Term Loan

10.98% (3M SOFR + 5.50%)

09/18/2026

1,338

^(e)(f)

Elemica Parent, Inc.

1st Lien Delay Draw Term Loan

10.93% (1M SOFR + 5.50%)

09/18/2026

2,750

^(e)(f)

Ellucian Holdings Inc.

1st Lien Term Loan

8.94% (1M SOFR + 3.50%)

10/09/2029

12,157

12,203

Ellucian Holdings Inc.

2nd Lien Term Loan

13.44% (1M SOFR + 8.00%)

10/09/2028

6,548

^(e)(f)

Enigma Acquisition B.V.

Netherlands

1st Lien Delay Draw Term Loan

11.36% (6M EURIBOR + 7.50%)

01/26/2028

€

4,343

4,651

^(e)(f)

Ensono, Inc.

1st Lien Term Loan

9.46% (1M SOFR + 4.00%)

05/26/2028

8,755

8,664

Enverus Holdings, Inc.

1st Lien Revolving Loan

12/24/2029

—

^(e)(h)

Enverus Holdings, Inc.

1st Lien Term Loan

10.84% (1M SOFR + 5.50%)

12/24/2029

8,740

^(e)(f)

Enverus Holdings, Inc.

1st Lien Delay Draw Term Loan

12/24/2029

—

^(e)(h)

Epicor Software Corporation

1st Lien Term Loan

8.59% (1M SOFR +3.25%)

05/30/2031

14,424

14,476

Epicor Software Corporation

1st Lien Delay Draw Term Loan

05/30/2031

—

^(h)

eResearch Technology, Inc.

1st Lien Term Loan

9.34% (1M SOFR + 4.00%)

02/04/2027

995

999

^(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

eResearch Technology, Inc.

2nd Lien Term Loan

13.44% (1M SOFR + 8.00%)

02/04/2028

11,166

^(e)(f)

eResearch Technology, Inc.

2nd Lien Delay Draw Term Loan

13.44% (1M SOFR + 8.00%)

02/04/2028

672

^(e)

ESHA Research, LLC

1st Lien Revolving Loan

11.02% (3M SOFR + 5.75%)

06/08/2028

^(e)(h)

ESHA Research, LLC

1st Lien Term Loan

11.02% (6M SOFR + 5.75%)

06/08/2028

477

^(e)(f)

ExtraHop Networks, Inc.

1st Lien Revolving Loan

07/22/2027

—

^(e)(h)

ExtraHop Networks, Inc.

1st Lien Term Loan

12.94% (1M SOFR + 7.50%)

07/22/2027

2,000

2,001

^(e)

ExtraHop Networks, Inc.

1st Lien Delay Draw Term Loan

12.94% (1M SOFR + 7.50%)

07/22/2027

764

^(e)(h)

Finastra USA, Inc.

1st Lien Revolving Loan

09/13/2029

—

^(e)(h)

Finastra USA, Inc.

1st Lien Term Loan

12.46% (3M SOFR + 7.25%)

09/13/2029

18,860

^(e)(f)

Flash Charm, Inc.

1st Lien Term Loan

8.83% (1M SOFR + 3.50%)

03/02/2028

19,772

19,609

^(f)

Flexential Topco Corporation

1st Lien Revolving Loan

0.12

08/25/2027

3,000

^(e)

Flexera Software LLC

1st Lien Term Loan

8.83% (3M SOFR + 3.50%)

03/03/2028

8,115

8,137

Gilfoyle Bidco AB

Sweden

1st Lien Term Loan

13.06% (6M STIBOR + 9.00%)

09/04/2028

SEK

65,475

5,807

^(e)(g)

Gilfoyle Bidco AB

Sweden

1st Lien Delay Draw Term Loan

13.06% (6M STIBOR + 9.00%)

09/04/2028

SEK

11,119

986

^(e)(g)(h)

Granite France Bidco SAS

France

1st Lien Term Loan

8.71% (3M EURIBOR + 5.00%)

10/17/2028

5,670

6,073

GraphPAD Software, LLC

1st Lien Revolving Loan

04/27/2027

—

^(e)(h)

GraphPAD Software, LLC

1st Lien Revolving Loan

06/30/2031

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

GraphPAD Software, LLC

1st Lien Term Loan

10.08% (3M SOFR + 4.75%)

06/30/2031

18,660

18,567

^(e)(f)(g)

GraphPAD Software, LLC

1st Lien Delay Draw Term Loan

06/30/2031

—

^(e)(g)(h)

Guidepoint Security Holdings, LLC

1st Lien Revolving Loan

10/02/2029

—

^(e)(h)

Guidepoint Security Holdings, LLC

1st Lien Term Loan

11.33% (3M SOFR + 6.00%)

10/02/2029

1,137

^(e)

Guidepoint Security Holdings, LLC

1st Lien Delay Draw Term Loan

10/02/2029

—

^(e)(h)

Hakken Bidco B.V.

Netherlands

1st Lien Term Loan

10.88% (3M EURIBOR + 7.00%)

07/26/2030

€

3,060

3,277

^(e)

Hakken Bidco B.V.

Netherlands

1st Lien Delay Draw Term Loan

10.67% (6M EURIBOR + 7.00%)

07/26/2030

€

477

511

^(e)(h)

Heavy Construction Systems Specialists, LLC

1st Lien Revolving Loan

11/16/2027

—

^(e)(h)

Heavy Construction Systems Specialists, LLC

1st Lien Term Loan

10.84% (1M SOFR + 5.50%)

11/16/2028

4,095

^(e)(f)

Heavy Construction Systems Specialists, LLC

1st Lien Term Loan

10.59% (1M SOFR + 5.25%)

11/16/2028

2,939

^(e)(f)

Help/Systems Holdings, Inc.

1st Lien Term Loan

9.43% (3M SOFR + 4.00%)

11/19/2026

15,647

13,998

^(f)

Help/Systems Holdings, Inc.

2nd Lien Term Loan

12.20% (3M SOFR + 6.75%)

11/19/2027

2,360

1,823

^(f)

Hyland Software, Inc.

1st Lien Revolving Loan

09/19/2029

—

^(e)(h)

Hyland Software, Inc.

1st Lien Term Loan

11.34% (1M SOFR + 6.00%)

09/19/2030

9,634

^(e)

Icefall Parent, Inc.

1st Lien Revolving Loan

01/25/2030

—

^(e)(g)(h)

Icefall Parent, Inc.

1st Lien Term Loan

11.83% (3M SOFR + 6.50%)

01/25/2030

2,328

2,282

^(e)(f)(g)

Idemia Group S.A.S.

France

1st Lien Term Loan

7.72% (3M EURIBOR + 4.00%)

09/30/2028

€

7,000

7,493

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Imprivata, Inc.

2nd Lien Term Loan

11.58% (3M SOFR + 6.25%)

12/01/2028

6,384

^(e)(f)

Infobip Inc.

1st Lien Term Loan

11.85% (3M SOFR + 6.25%)

09/17/2026

7,043

^(e)(f)

IQN Holding Corp.

1st Lien Revolving Loan

10.60% (3M SOFR + 5.25%)

05/02/2028

^(e)(h)

IQN Holding Corp.

1st Lien Term Loan

10.60% (3M SOFR + 5.25%)

05/02/2029

6,737

6,738

^(e)(f)

Ivanti Software,Inc.

1st Lien Revolving Loan

8.84% (1M SOFR + 3.50%)

12/01/2025

137

108

^(e)(h)

Kaseya Inc.

1st Lien Revolving Loan

10.83% (3M SOFR + 5.50%)

06/25/2029

598

^(e)(g)(h)

Kaseya Inc.

1st Lien Term Loan

11.33% (3M SOFR + 6.00%)

06/25/2029

39,889

^(e)(f)(g)

Kaseya Inc.

1st Lien Delay Draw Term Loan

10.82% (3M SOFR + 5.50%)

06/25/2029

118

^(e)(g)(h)

Kaseya Inc.

1st Lien Delay Draw Term Loan

11.33% (3M SOFR + 6.00%)

06/25/2029

146

^(e)(g)

LeanTaaS Holdings, Inc.

1st Lien Term Loan

12.83% (3M SOFR + 7.50%)

07/12/2028

2,635

^(e)

LeanTaaS Holdings, Inc.

1st Lien Delay Draw Term Loan

12.83% (1M SOFR + 7.50%)

07/12/2028

1,539

^(e)(h)

LeanTaaS Holdings, Inc.

1st Lien Delay Draw Term Loan

12.83% (3M SOFR + 7.50%)

07/12/2028

1,114

^(e)(h)

Majesco

1st Lien Revolving Loan

09/21/2027

—

^(e)(h)

Majesco

1st Lien Term Loan

10.08% (3M SOFR + 4.75%)

09/21/2028

9,624

^(e)(f)

Maltese Bidco 1 Limited

United Kingdom

1st Lien Term Loan

11.15% (6M EURIBOR + 7.25%)

02/14/2029

€

3,600

3,856

^(e)(f)(g)

Maltese Bidco 1 Limited

United Kingdom

1st Lien Term Loan

11.08% (3M EURIBOR + 7.25%)

02/14/2029

1,543

1,950

^(e)(g)

McAfee Corp.

1st Lien Term Loan

8.58% (1M SOFR + 3.25%)

03/01/2029

5,000

4,988

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

MH Sub I, LLC (Micro Holding Corp.)

1st Lien Term Loan

9.59% (1M SOFR + 4.25%)

05/03/2028

9,129

9,114

Mimecast Borrowerco, Inc.

1st Lien Term Loan

10.59% (1M SOFR + 5.25%)

05/18/2029

37,893

^(e)(f)(g)

Mimecast Borrowerco, Inc.

1st Lien Term Loan

10.45% (3M SONIA + 5.25%)

05/18/2029

6,930

8,760

^(e)(f)(g)

Mimecast Borrowerco, Inc.

1st Lien Delay Draw Term Loan

10.59% (1M SOFR + 5.25%)

05/18/2029

1,144

^(e)(g)(h)

Mitchell International, Inc.

1st Lien Term Loan

06/17/2031

10,000

9,900

⁽ⁱ⁾

Mitchell International, Inc.

2nd Lien Term Loan

06/07/2032

10,000

9,944

⁽ⁱ⁾

MRI Software LLC

1st Lien Revolving Loan

02/10/2027

—

^(e)(h)

MRI Software LLC

1st Lien Term Loan

10.93% (3M SOFR + 5.50%)

02/10/2027

7,132

^(e)(f)

MRI Software LLC

1st Lien Term Loan

10.93% (3M SOFR + 5.50%)

02/10/2027

2,685

2,686

^(e)(f)(g)

MRI Software LLC

1st Lien Delay Draw Term Loan

11.08% (3M SOFR + 5.75%)

02/10/2027

^(e)(h)

Netsmart, Inc.

1st Lien Term Loan

9.21% (1M SOFR + 3.75%)

10/01/2027

8,646

8,661

North Star Acquisitionco, LLC and Toucan Bidco Limited

1st Lien Revolving Loan

10.20% (3M SONIA + 5.00%)

05/03/2029

^(e)(g)(h)

North Star Acquisitionco, LLC and Toucan Bidco Limited

1st Lien Term Loan

10.31% (6M SOFR + 5.00%)

05/03/2029

2,137

2,126

^(e)(g)

North Star Acquisitionco, LLC and Toucan Bidco Limited

1st Lien Term Loan

10.20% (6M SONIA + 5.00%)

05/03/2029

241

303

^(e)(g)

North Star Acquisitionco, LLC and Toucan Bidco Limited

1st Lien Term Loan

9.72% (3M NIBOR + 5.00%)

05/03/2029

5,281

492

^(e)(g)

North Star Acquisitionco, LLC and Toucan Bidco Limited

1st Lien Delay Draw Term Loan

05/03/2029

—

^(e)(g)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Open Text Corp

Canada

1st Lien Term Loan

7.59% (1M SOFR + 2.25%)

01/31/2030

8,073

8,105

ParentPay Group Limited

United Kingdom

1st Lien Term Loan

12.06% (3M SONIA + 6.72%)

06/30/2028

5,529

6,989

^(e)(f)

ParentPay Group Limited

United Kingdom

1st Lien Delay Draw Term Loan

12.06% (3M SONIA + 6.72%)

06/30/2028

1,464

1,850

^(e)

PDDS Holdco, Inc.

1st Lien Revolving Loan

12.98% (3M SOFR + 7.50%)

07/18/2028

^(e)(h)

PDDS Holdco, Inc.

1st Lien Term Loan

12.98% (3M SOFR + 7.50%)

07/18/2028

733

^(e)

PDDS Holdco, Inc.

1st Lien Delay Draw Term Loan

12.98% (3M SOFR + 7.50%)

07/18/2028

^(e)

PDDS Holdco, Inc.

1st Lien Delay Draw Term Loan

12.98% (3M SOFR + 7.50%)

07/18/2028

234

^(e)(g)(h)

PDI TA Holdings, Inc.

1st Lien Revolving Loan

02/03/2031

—

^(e)(h)

PDI TA Holdings, Inc.

1st Lien Term Loan

10.58% (3M SOFR + 5.25%)

02/03/2031

1,798

1,780

^(e)(f)(g)

PDI TA Holdings, Inc.

1st Lien Delay Draw Term Loan

10.60% (3M SOFR + 5.25%)

02/03/2031

220

218

^(e)(g)(h)

Pluralsight, Inc.

1st Lien Revolving Loan

04/06/2027

1,204

578

^(e)(j)

Pluralsight, Inc.

1st Lien Term Loan

04/06/2027

16,506

7,923

^(e)(j)

Polaris Newco, LLC

1st Lien Term Loan

9.59% (3M SOFR + 4.00%)

06/02/2028

6,055

6,049

PracticeTek Purchaser, LLC

1st Lien Revolving Loan

9.84% (1M SOFR + 4.50%)

08/30/2029

—

^(e)(h)

PracticeTek Purchaser, LLC

1st Lien Term Loan

11.09% (1M SOFR + 5.75%)

08/30/2029

7,559

^(e)

PracticeTek Purchaser, LLC

1st Lien Delay Draw Term Loan

11.09% (1M SOFR + 5.75%)

08/30/2029

109

^(e)(h)

Precisely Software Incorporated (f/k/a Syncsort Incorporated)

1st Lien Term Loan

9.84% (3M SOFR + 4.50%)

04/24/2028

13,230

12,966

^(f)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

ProfitSolv Purchaser, Inc.

1st Lien Revolving Loan

10.84% (1M SOFR + 5.50%)

03/05/2027

462

^(e)(h)

ProfitSolv Purchaser, Inc.

1st Lien Term Loan

10.84% (1M SOFR + 5.50%)

03/05/2027

5,277

5,276

^(e)(f)

ProfitSolv Purchaser, Inc.

1st Lien Delay Draw Term Loan

10.84% (1M SOFR + 5.50%)

03/05/2027

1,324

^(e)(h)

Project Boost Purchaser, LLC

1st Lien Term Loan

8.96% (1M SOFR + 3.50%)

05/30/2026

16,355

Project Boost Purchaser, LLC

1st Lien Term Loan

8.96% (1M SOFR + 3.50%)

06/01/2026

7,638

7,639

Project Essential Bidco, Inc.

1st Lien Revolving Loan

04/20/2027

—

^(e)(h)

Project Essential Bidco, Inc.

1st Lien Term Loan

11.74% (3M SOFR + 6.25%)

04/20/2028

4,169

3,794

^(e)(f)

Proofpoint, Inc.

1st Lien Revolving Loan

08/31/2026

—

^(e)(h)

Proofpoint, Inc.

1st Lien Term Loan

8.34% (1M SOFR + 3.00%)

08/31/2028

25,827

25,837

Pushpay USA Inc.

1st Lien Revolving Loan

05/10/2029

—

^(e)(h)

Pushpay USA Inc.

1st Lien Term Loan

12.23% (3M SOFR + 6.75%)

05/10/2030

230

^(e)

QF Holdings, Inc.

1st Lien Revolving Loan

11.17% (3M SOFR + 5.75%)

12/15/2027

116

^(e)(h)

QF Holdings, Inc.

1st Lien Term Loan

11.18% (3M SOFR + 5.75%)

12/15/2027

3,812

3,813

^(e)(f)

QF Holdings, Inc.

1st Lien Term Loan

11.20% (3M SOFR + 5.75%)

12/15/2027

393

^(e)

QF Holdings, Inc.

1st Lien Delay Draw Term Loan

11.18% (3M SOFR + 5.75%)

12/15/2027

525

^(e)

Quest Software US Holdings Inc.

1st Lien Term Loan

9.73% (3M SOFR + 4.25%)

02/01/2029

8,546

6,314

Raptor Technologies, LLC (Sycamore Bidco Ltd)

1st Lien Revolving Loan

10/05/2027

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Raptor Technologies, LLC (Sycamore Bidco Ltd)

1st Lien Term Loan

10.08% (3M SOFR + 4.75%)

10/05/2028

8,315

^(e)(f)

RealPage, Inc.

1st Lien Term Loan

8.46% (1M SOFR + 3.00%)

04/24/2028

4,980

4,834

RealPage, Inc.

2nd Lien Term Loan

11.96% (1M SOFR + 6.50%)

04/23/2029

30,924

30,461

^(e)(f)

Relativity ODA LLC

1st Lien Revolving Loan

05/12/2027

—

^(e)(g)(h)

Relativity ODA LLC

1st Lien Term Loan

11.44% (1M SOFR + 6.00%)

05/12/2027

7,543

^(e)(g)

Revalize, Inc.

1st Lien Revolving Loan

11.23% (3M SOFR + 5.75%)

04/15/2027

^(e)(h)

Revalize, Inc.

1st Lien Delay Draw Term Loan

11.23% (3M SOFR + 5.75%)

04/15/2027

2,904

2,672

^(e)

RMS Holdco II, LLC

1st Lien Revolving Loan

12/16/2027

—

^(e)(h)

RMS Holdco II, LLC

1st Lien Term Loan

11.73% (3M SOFR + 6.25%)

12/16/2027

7,049

6,696

^(e)(f)

Sedgwick Claims Management Services, Inc.

1st Lien Term Loan

0.0325

06/27/2031

4,017

4,007

^(e)

Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.)

1st Lien Term Loan

9.09% (1M SOFR + 3.75%)

02/24/2028

16,090

16,088

Smarsh Inc.

1st Lien Revolving Loan

11.09% (1M SOFR + 5.75%)

02/16/2029

109

^(e)(h)

Smarsh Inc.

1st Lien Term Loan

11.08% (3M SOFR + 5.75%)

02/16/2029

3,561

^(e)(f)

Smarsh Inc.

1st Lien Delay Draw Term Loan

11.08% (3M SOFR + 5.75%)

02/16/2029

445

^(e)(h)

Spark Purchaser, Inc.

1st Lien Revolving Loan

04/01/2030

—

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Spark Purchaser, Inc.

1st Lien Term Loan

10.83% (3M SOFR + 5.50%)

04/01/2031

1,303

1,277

^(e)

SS&C Technologies Holdings, Inc.

1st Lien Term Loan

7.34% (1M SOFR + 2.00%)

05/09/2031

5,341

5,347

Storable, Inc.

2nd Lien Term Loan

12.09% (1M SOFR + 6.75%)

04/16/2029

9,527

^(e)(f)

Sundance Group Holdings, Inc.

1st Lien Revolving Loan

11.67% (3M SOFR + 6.25%)

07/02/2027

^(e)(h)

Sundance Group Holdings, Inc.

1st Lien Term Loan

11.68% (3M SOFR + 6.25%)

07/02/2027

1,510

^(e)(f)

Sundance Group Holdings, Inc.

1st Lien Term Loan

11.70% (3M SOFR + 6.25%)

07/02/2027

^(e)

Sundance Group Holdings, Inc.

1st Lien Delay Draw Term Loan

11.68% (3M SOFR + 6.25%)

07/02/2027

453

^(e)

TCP Hawker Intermediate LLC

1st Lien Revolving Loan

10.59% (1M SOFR + 5.25%)

08/28/2026

125

^(e)(h)

TCP Hawker Intermediate LLC

1st Lien Term Loan

10.98% (3M SOFR + 5.50%)

08/28/2026

2,700

^(e)(f)

TCP Hawker Intermediate LLC

1st Lien Term Loan

11.48% (3M SOFR + 6.00%)

08/28/2026

1,232

^(e)

TCP Hawker Intermediate LLC

1st Lien Delay Draw Term Loan

10.97% (3M SOFR + 5.50%)

08/28/2026

1,872

^(e)(f)

TCP Hawker Intermediate LLC

1st Lien Delay Draw Term Loan

11.48% (3M SOFR + 6.00%)

08/28/2026

535

^(e)(h)

UserZoom Technologies, Inc.

1st Lien Term Loan

12.81% (3M SOFR + 7.50%)

04/05/2029

250

247

^(e)

VS Buyer, LLC

1st Lien Term Loan

8.58% (1M SOFR + 3.25%)

04/12/2031

7,580

7,590

WebPT, Inc.

1st Lien Revolving Loan

12.19% (3M SOFR + 6.75%)

01/18/2028

^(e)(h)

WebPT, Inc.

1st Lien Term Loan

12.20% (3M SOFR + 6.75%)

01/18/2028

2,042

2,041

^(e)

Wellington Bidco Inc.

1st Lien Revolving Loan

10.34% (3M SOFR + 5.00%)

06/05/2030

110

109

^(e)(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Shares

Amount^(a)

Value^(a)

Assets

Wellington Bidco Inc.

1st Lien Term Loan

10.34% (3M SOFR + 5.00%)

06/05/2030

3,330

3,297

^(e)(f)(g)

Wellington Bidco Inc.

1st Lien Delay Draw Term Loan

06/05/2030

—

^(e)(g)(h)

Wellness AcquisitionCo, Inc.

1st Lien Revolving Loan

01/20/2027

—

^(e)(h)

Wellness AcquisitionCo, Inc.

1st Lien Term Loan

10.95% (3M SOFR + 5.50%)

01/20/2027

3,017

^(e)(f)

Wellness AcquisitionCo, Inc.

1st Lien Delay Draw Term Loan

10.95% (3M SOFR + 5.50%)

01/20/2027

274

273

^(e)(h)

WorkWave Intermediate II, LLC

1st Lien Revolving Loan

06/29/2027

—

^(e)(h)

WorkWave Intermediate II, LLC

1st Lien Term Loan

12.43% (3M SOFR + 7.00%)

06/29/2027

4,746

^(e)

WorkWave Intermediate II, LLC

1st Lien Delay Draw Term Loan

12.43% (3M SOFR + 7.00%)

06/29/2027

3,199

^(e)(g)

WorkWave Intermediate II, LLC

1st Lien Delay Draw Term Loan

06/29/2027

—

^(e)(g)(h)

WSBidCo Limited

Jersey

1st Lien Term Loan

12.07% (3M SONIA + 6.75%)

06/16/2028

2,679

3,386

^(e)(f)(g)

WSBidCo Limited

Jersey

1st Lien Delay Draw Term Loan

12.07% (3M SONIA + 6.75%)

06/16/2028

2,679

3,386

^(e)(g)

WSBidCo Limited

Jersey

1st Lien Delay Draw Term Loan

12.32% (3M SONIA + 7.00%)

06/16/2028

2,596

3,282

^(e)(g)(h)

ZocDoc, Inc.

1st Lien Term Loan

11.83% (1M SOFR + 6.50%)

05/21/2029

2,730

2,696

^(e)(f)(g)

1,004,109

26.08

Technology Hardware and Equipment

Chariot Buyer LLC

1st Lien Revolving Loan

01/26/2029

—

^(e)(h)

Chariot Buyer LLC

1st Lien Term Loan

8.84% (1M SOFR + 3.50%)

11/03/2028

16,858

16,893

Cotiviti Holdings, Inc.

1st Lien Term Loan

8.58% (1M SOFR + 3.25%)

05/01/2031

7,000

6,956

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Shares

Amount^(a)

Value^(a)

Assets

Cotiviti Holdings, Inc.

1st Lien Term Loan

0.0763

05/01/2031

5,000

4,971

Emerald Debt Merger Sub LLC

1st Lien Term Loan

7.84% (1M SOFR + 2.50%)

05/31/2030

8,507

8,498

Excelitas Technologies Corp.

1st Lien Term Loan

10.58% (3M SOFR + 5.25%)

08/12/2029

2,092

^(e)(f)

Excelitas Technologies Corp.

1st Lien Delay Draw Term Loan

08/12/2029

—

^(e)(h)

FL Hawk Intermediate Holdings, Inc.

1st Lien Revolving Loan

02/22/2027

—

^(e)(h)

FL Hawk Intermediate Holdings, Inc.

1st Lien Term Loan

10.35% (3M SOFR + 4.75%)

02/22/2028

7,177

^(e)(f)

Micromeritics Instrument Corp.

1st Lien Revolving Loan

12/18/2025

—

^(e)(h)

Micromeritics Instrument Corp.

1st Lien Term Loan

10.01% (3M SOFR + 4.50%)

12/18/2025

1,217

^(e)(f)

MWG BidCo ApS

Denmark

1st Lien Term Loan

11.33% (3M CIBOR + 7.50%)

02/29/2028

DKK

20,066

2,824

^(e)

MWG BidCo ApS

Denmark

1st Lien Delay Draw Term Loan

11.17% (6M EURIBOR + 7.50%)

02/29/2028

DKK

670

^(e)(h)(i)

Repairify, Inc.

1st Lien Revolving Loan

10.48% (3M SOFR + 5.00%)

06/14/2027

766

^(e)

Repairify, Inc.

1st Lien Term Loan

10.51% (3M SOFR + 5.00%)

06/14/2027

3,472

^(e)(f)

Stellant Midco, LLC

1st Lien Term Loan

11.04% (6M SOFR + 5.50%)

10/02/2028

1,582

^(e)(f)

Wildcat BuyerCo, Inc.

1st Lien Revolving Loan

02/26/2027

—

^(e)(h)

Wildcat BuyerCo, Inc.

1st Lien Term Loan

11.08% (3M SOFR + 5.75%)

02/26/2027

4,181

^(e)(f)

Wildcat BuyerCo, Inc.

1st Lien Delay Draw Term Loan

11.08% (3M SOFR + 5.75%)

02/26/2027

2,627

^(e)(f)(h)

63,350

1.65

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Telecommunication Services

CB-SDG Limited

United Kingdom

1st Lien Term Loan

04/02/2028

1,672

2,010

^(e)(g)(j)

Delta Topco, Inc.

1st Lien Term Loan

8.85% (3M SOFR + 3.50%)

11/30/2029

14,400

14,388

Hamsard 3713 Limited

United Kingdom

1st Lien Term Loan

10.58% (3M EURIBOR + 6.86%)

11/22/2030

€

8,541

9,147

^(e)(g)

Hamsard 3713 Limited

United Kingdom

1st Lien Delay Draw Term Loan

10.58% (6M EURIBOR + 6.86%)

11/22/2030

€

465

498

^(e)(g)(h)

Iridium Communications Inc

1st Lien Term Loan

7.59% (1M SOFR + 2.25%)

09/20/2030

3,980

3,972

Panther NewCo

France

1st Lien Term Loan

9.26% (3M EURIBOR + 5.54%)

05/24/2029

€

8,250

8,836

^(e)(g)

Panther NewCo

France

1st Lien Delay Draw Term Loan

9.17% (3M EURIBOR + 5.45%)

05/24/2029

€

1,609

1,723

^(e)(g)(h)

Zayo Group Holdings, Inc.

1st Lien Term Loan

8.46% (1M SOFR + 3.00%)

03/09/2027

14,485

12,572

53,146

1.38

Transportation

Draken Bidco Limited

United Kingdom

1st Lien Term Loan

12.32% (6M SOFR + 6.75%)

07/20/2029

10,560

^(e)(f)(g)

Draken Bidco Limited

United Kingdom

1st Lien Delay Draw Term Loan

07/20/2029

—

^(e)(g)(h)

Genesee & Wyoming Inc.

1st Lien Term Loan

7.33% (3M SOFR + 2.00%)

04/10/2031

3,500

3,495

Internet Truckstop Group LLC

1st Lien Revolving Loan

04/02/2027

—

^(e)(h)

Internet Truckstop Group LLC

1st Lien Term Loan

10.98% (6M SOFR + 5.50%)

04/02/2027

2,328

2,305

^(e)

Neovia Logistics, LP

1st Lien Term Loan

14.43% (3M SOFR + 9.00%)

11/01/2027

455

^(e)

Shur-Co Acquisition, Inc.

1st Lien Term Loan

10.84% (1M SOFR + 5.50%)

07/01/2030

3,494

^(e)(f)

Shur-Co Acquisition, Inc.

1st Lien Term Loan

10.83% (3M SOFR + 5.50%)

07/01/2030

846

^(e)

21,155

0.55

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Senior Loans^(b)(c)(d)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Utilities

CQP Holdco L.P.

1st Lien Term Loan

7.55% (3M SOFR +2.25%)

12/31/2030

6,983

Scholt Energy B.V.

Netherlands

1st Lien Term Loan

9.47% (3M EURIBOR + 5.75%)

08/10/2028

€

7,500

8,032

^(e)(f)

15,015

0.39

Total Senior Loans (Cost 4,326,100)

4,279,578

111.16

Subordinated Loans^(b)(c)(d)(e)

Commercial and Professional Services

Argenbright Holdings V, LLC

Subordinated Delay Draw Term Loan

13.73% (3M SOFR + 8.25%)

11/30/2028

SEK 2,878

2,878

^(f)(g)(h)

2,878

0.07

Financial Services

eCapital Finance Corp.

Canada

Subordinated Term Loan

13.18% (1M SOFR + 7.75%)

12/31/2025

35,493

eCapital
Finance Corp.

Canada

Subordinated Delay Draw Term Loan

13.18% (1M SOFR + 7.75%)

12/31/2025

2,803

TVG-TMG Topco, Inc.

Subordinated Term Loan

12.00 %

03/30/2029

3,493

3,318

^(g)

41,614

1.08

Media and Entertainment

22 HoldCo Limited

United Kingdom

Subordinated Delay Draw Term Loan

12.96% (6M SONIA + 7.50%)

08/23/2033

793

1,003

^(g)(h)

22 HoldCo
Limited

United Kingdom

Subordinated Term Loan

12.96% (6M SONIA + 7.50%)

08/23/2033

2,942

3,719

^(g)

4,722

0.12

Pharmaceuticals, Biotechnology and Life Sciences

Cardinal Topco Holdings, L.P.

Subordinated Term Loan

11.00%

03/17/2025

^(g)

—

Real Estate Management and Development

OPH NEP Investment, LLC

Subordinated Term Loan

0.1

05/03/2032

8,625

8,409

^(g)

8,409

0.22

78     Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Subordinated Loans^(b)(c)(d)(e)(continued)

				Maturity	Acquisition		Principal		Fair			% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)			Assets
Software and Services
WPT Intermediate Holdco, Inc.	Subordinated Term Loan	0.1325	05/07/2029				$	18,430	$	17,969	^(g)
									17,969			0.47	%
Total Subordinated Loans (Cost 74,794)									75,602			1.96	%
Corporate Bonds^(b)(c)
Capital Goods
CP Atlas Buyer Inc		7.00%	12/01/2028					12,561	10,748		^(d)

LBM Acquisition LLC		6.25%	01/15/2029					17,324	15,312		^(d)

Specialty Building Products Holdings LLC / SBP Finance Corp		6.38%	09/30/2026					18,174	17,854		^(d)

Standard Industries Inc/NJ		4.38%	07/15/2030					8,000	7,233		^(d)

VistaJet Malta Finance PLC / Vista Management Holding Inc	Malta	9.50%	06/01/2028					7,292	6,394		^(d)

VistaJet Malta Finance PLC / Vista Management Holding Inc	Malta	6.38%	02/01/2030					16,434	12,933		^(d)
									70,474			1.83	%
Commercial and Professional Services
NBLY 2021-1		3.58%	04/30/2051					24	22		^(d)(e)
Neptune BidCo US Inc.		9.29%	04/15/2029					8,991	8,610		^(d)
VRC Companies, LLC		12.00%	06/29/2028					26	25		^(e)(g)
									8,657			0.22	%
Consumer Discretionary Distribution and Retail
Carvana Co		14.00%	06/01/2031					214	241		^(d)(g)
									241			0.01	%

Semi Annual Report 2024   79

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Corporate Bonds^(b)(c)(continued)

				Maturity	Acquisition		Principal		Fair			% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)			Assets
Consumer Services
AUTHB 2021-1			3.73%	07/30/2051			$	24	$	21	^(d)(e)

Caesars Entertainment Inc			8.13%	07/01/2027				7,517	7,670		^(d)

MGM Resorts International			6.50%	04/15/2032				6,844	6,813

SERV 2020-1			3.34%	01/30/2051				24	20		^(d)(e)
									14,524			0.38	%
Consumer Staples Distribution and Retail
BUNDT 2021-1			2.99%	07/30/2051				25	23		^(d)(e)
									23			—	%
Energy
Ascent Resources - Utica LLC/ARU Finance Corp			9.00%	11/01/2027				500	619		^(d)

Enviva Partners LP / Enviva Partners Finance Corp				01/15/2026				17,217	7,635		^(d)(j)

EQM Midstream Partners LP			6.50%	07/15/2048				3,000	3,029

ITT Holdings LLC			6.50%	08/01/2029				18,264	16,559		^(d)

Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp			6.00%	12/31/2030				8,193	7,650		^(d)

Transocean Inc.	Cayman Islands		6.80%	03/15/2038				12,978	10,738
									46,230			1.20	%
Equity Real Estate Investment Trusts (REITs)
Brookfield Property REIT Inc / BPR Cumulus LLC / BPR Nimbus LLC / GGSI Sellco LL			4.50%	04/01/2027				13,997	13,027		^(d)

Iron Mountain Inc			4.88%	09/15/2029				4,000	3,769		^(d)

80     Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Corporate Bonds^(b)(c) (continued)

				Maturity	Acquisition		Principal		Fair			% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)			Assets
Iron Mountain Inc			5.25%	07/15/2030			$	4,089	$	3,886	^(d)
									20,682			0.54	%
Financial Services
Antenore Bidco SpA	Italy		10.86%	10/08/2030			€	3,000	3,213		^(e)
BCC Blueprint Investments, LLC			9.30%	09/15/2026				775	775		^(d)(e)(g)
HighTower Holding, LLC			6.75%	04/15/2029				3,280	3,069		^(d)
Midcap Financial Issuer Trust			6.50%	05/01/2028				20,660	19,538		^(d)
Nationstar Mortgage Holdings Inc.			5.50%	08/15/2028				7,880	7,572		^(d)
WAX 2022-1			5.50%	03/15/2052				18,620	17,723		^(d)(e)
									51,890			1.35	%
Food, Beverage and Tobacco
Triton Water Holdings, Inc.			6.25%	04/01/2029				100	97		^(d)
									97			—	%
Health Care Equipment and Services
JDC Healthcare Management, LLC				09/29/2029				35	1		^(e)(g)(j)
									1			—	%
Materials
Ardagh Packaging Finance PLC / Ardagh Holdings USA Inc	Ireland		5.25%	08/15/2027				26,972	16,726		^(d)
Chemours Company, The			5.75%	11/15/2028				2,864	2,644		^(d)
Chemours Company, The			4.63%	11/15/2029				6,079	5,250		^(d)
Compass Minerals International, Inc.			6.75%	12/01/2027				9,700	9,265		^(d)

Semi Annual Report 2024     81

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Corporate Bonds^(b)(c) (continued)

				Maturity	Acquisition		Principal		Fair			% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)			Assets
OI European Group BV	Netherlands		4.75%	02/15/2030			$	9,750	$	8,913	^(d)
Owens-Brockway Glass Container Inc			6.63%	05/13/2027				2,250	2,246		^(d)
Trident TPI Holdings, Inc.			12.75%	12/31/2028				6,102	6,666		^(d)
									51,710			1.34	%
Media and Entertainment
ANGI Group LLC			3.88%	08/15/2028				9,203	7,906		^(d)
Aventine Holdings II LLC			10.25%	12/23/2030				14,085	11,832		^(e)(g)
Eagle Football Holdings BidCo Limited	United Kingdom		13.31% (6M SOFR + 8.00%)	12/13/2028				1,491	1,462		^(e)
Eagle Football Holdings BidCo Limited	United Kingdom		17.00%	12/13/2028				707	707		^(e)(g)
Gray Television,Inc.			10.50%	07/15/2029				7,024	7,064		^(d)
Scripps Escrow II Inc			3.88%	01/15/2029				19,403	13,470		^(d)
									42,441			1.10	%
Software and Services
AffiniPay Intermediate Holdings, LLC			15.33% (3M SOFR + 10.00%)	06/09/2030				3,239	3,239		^(e)
AffiniPay Intermediate Holdings, LLC			15.33% (3M SOFR + 10.00%)	06/09/2030				2,329	2,329		^(e)(g)
Cloud Software Group, Inc.			9.00%	09/30/2029				100	97		^(d)
Cloud Software Group, Inc.			8.25%	06/30/2032				3,400	3,465		^(d)
Insightful Science Intermediate I, LLC			10.50%	04/28/2032				1,732	1,663		^(e)
Open Text Holdings Inc			4.13%	02/15/2030				8,500	7,667		^(d)
Practicetek Midco, LLC			14.00%	08/30/2030				8,756	8,756		^(e)(g)
									27,216			0.71	%

82     Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Corporate Bonds^(b)(c)(continued)

				Maturity	Acquisition		Principal		Fair			% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)			Assets
Telecommunication Services
Level 3 Financing Inc.			11.00%	11/15/2029			$	14,000	$	14,327	^(d)
Zayo Group Holdings, Inc.			4.00%	03/01/2027				13,000		10,335	^(d)
										24,662		0.64	%
Utilities
NRG Energy Inc			3.63%	02/15/2031				8,000		6,862	^(d)
										6,862		0.18	%
Total Corporate Bonds (Cost 374,131)										365,710		9.50	%
Collateralized Loan Obligations — Credit Linked Notes
Financial Services
BTCP 2023-1			11.20% (1M SOFR + 6.50%)	09/30/2030				11,300		11,300	^(e)
										11,300		0.29	%
Total Collateralized Loan Obligations — Credit Linked Notes (Cost 11,300)										11,300		0.29	%
Collateralized Loan Obligations — Debt^(b)(c)(d)(e)
AIMCO 2021-15A E	Cayman Islands		11.53% (3M SOFR + 6.21%)	10/17/2034				750		753
AIMCO 2021-16A E	Cayman Islands		11.78% (3M SOFR + 6.46%)	01/17/2035				913		920
AMMC 2012-11A ER2	Cayman Islands		11.39% (3M SOFR + 6.06%)	04/30/2031				1,500		1,506
AMMC 2018-22A E2	Cayman Islands		11.09% (3M SOFR + 5.76%)	04/25/2031				750		754
ANCHF 2020-12A E	Cayman Islands		0.0691	10/25/2038				1,000		924
ATRM 15A ER	Cayman Islands			07/16/2037				2,375		2,387	^(l)
BALLY 2023-24A C	Jersey		10.38% (3M SOFR + 5.05%)	07/15/2036				2,000		2,052
BALLY 2024-26A D	Cayman Islands		11.43% (3M SOFR + 6.10%)	07/25/2037				1,800		1,809
BCC 2019-2A ER	Cayman Islands		11.90% (3M SOFR + 6.58%)	10/17/2032				1,250		1,203

Semi Annual Report 2024     83

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Collateralized Loan Obligations — Debt^(b)(c)(d)(e)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

BCC 2019-4A ER

Cayman Islands

13.32% (3M SOFR + 7.99%)

04/23/2035

6,000

5,927

BCC 2020-1A ER

Cayman Islands

12.47% (3M SOFR + 7.15%)

04/18/2033

2,500

2,517

BCC 2022-2A E

Jersey

13.16% (3M SOFR + 7.84%)

04/22/2035

9,480

9,522

BCC 2023-3A D

Jersey

10.57% (3M SOFR + 5.25%)

07/24/2036

3,000

3,108

CANYC 2018-1A E

Cayman Islands

11.34% (3M SOFR + 6.01%)

07/15/2031

850

824

CGMS 2023-2A D1

Cayman Islands

10.32% (3M SOFR + 5.00%)

07/20/2036

5,000

5,122

CGMS 2024-3A E

Cayman Islands

11.70% (3M SOFR + 6.40%)

07/25/2036

3,250

3,267

CIFC 2014-3A ER2

Cayman Islands

11.69% (3M SOFR + 6.36%)

10/22/2031

997

1,000

CPTPK 2024-1A E

Jersey

11.33% (3M SOFR + 6.00%)

07/20/2037

1,750

1,762

DEN12 2016-1A ER

Cayman Islands

11.49% (3M SOFR + 6.16%)

04/15/2031

375

371

DEN14 2016-1A ER

Cayman Islands

11.94% (3M SOFR + 6.61%)

10/23/2031

750

739

DRSLF 2018-55A E

Cayman Islands

10.99% (3M SOFR + 5.66%)

04/15/2031

375

351

DRSLF 2018-58A E

Cayman Islands

10.93% (3M SOFR + 5.61%)

07/17/2031

1,000

935

DRSLF 2018-70A E

Cayman Islands

11.64% (3M SOFR + 6.31%)

01/16/2032

250

249

DRSLF 2022-106A D

Cayman Islands

11.03% (3M SOFR + 5.70%)

10/15/2035

1,000

1,012

DRSLF 2022-106A E

Cayman Islands

14.20% (3M SOFR + 8.87%)

10/15/2035

500

512

DRSLF 2022-108A D

Jersey

9.58% (3M SOFR + 4.25%)

07/18/2035

2,000

2,011

84   Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Collateralized Loan Obligations — Debt^(b)(c)(d)(e)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

ELM16 2022-3A FR

Cayman Islands

13.32% (3M SOFR + 8.00%)

04/20/2037

658

649

ELM24 2023-3A E

Cayman Islands

12.90% (3M SOFR + 7.57%)

12/11/2033

445

455

INGIM 2013-3A DR

Cayman Islands

11.49% (3M SOFR + 6.16%)

10/18/2031

1,250

1,226

JNPPK 2023-1A D

Jersey

10.02% (3M SOFR + 4.70%)

07/20/2035

2,500

2,517

KKR 2022-41A E

Cayman Islands

12.03% (3M SOFR + 6.70%)

04/15/2035

1,500

1,507

KKR 34X E

Cayman Islands

12.44% (3M SOFR + 7.11%)

07/15/2034

600

603

KKR 44A D

Cayman Islands

10.31% (3M SOFR + 5.00%)

01/20/2036

3,800

3,967

MDPK 2014-14A FR

Cayman Islands

13.36% (3M SOFR + 8.03%)

10/22/2030

1,000

875

MDPK 2018-27A D

Cayman Islands

10.59% (3M SOFR + 5.26%)

04/20/2030

650

645

MDPK 2018-28A F

Cayman Islands

13.19% (3M SOFR + 7.86%)

07/15/2030

500

488

MDPK 2021-52A E

Cayman Islands

12.09% (3M SOFR + 6.76%)

01/22/2035

1,455

1,453

MDPK 2021-59A ER

Cayman Islands

11.73% (3M SOFR + 6.40%)

04/18/2037

2,500

2,511

MDPK 2022-55A E

Cayman Islands

13.50% (3M SOFR + 8.17%)

07/18/2035

662

670

OAKC 2022-12A DR

Bermuda

10.32% (3M SOFR + 5.00%)

07/20/2036

5,000

5,071

OHALF 2015-1X ER3

Cayman Islands

12.24% (3M SOFR + 6.91%)

01/19/2037

860

877

RRAM 2019-6A DR

Cayman Islands

11.44% (3M SOFR + 6.11%)

04/15/2036

1,800

1,759

RRAM 2022-21A D

Bermuda

12.98% (3M SOFR + 7.65%)

07/15/2035

1,000

1,008

Semi Annual Report 2024     85

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Collateralized Loan Obligations — Debt^(b)(c)(d)(e)(continued)

				Maturity	Acquisition		Principal		Fair		% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)		Assets
WOODS 2018-12BA E	Cayman Islands		11.39% (3M SOFR + 6.05%)	06/15/2031			$	750	$	697
Total Collateralized Loan Obligations — Debt (Cost 77,515)										78,515	2.04	%

Collateralized Loan Obligations — Equity^(d)(e)

AIMCO 2020-11A SUB	Cayman Islands		23.86%	10/17/2034				7,258		6,227
AIMCO 2021-16A SUB	Cayman Islands		16.70%	01/17/2035				4,882		3,826
AIMCO 2021-16X SUB	Cayman Islands		16.70%	01/17/2035				1,000		784
AIMCO 2023-20A SUB	Jersey			10/16/2036				1,500		1,426
AIMCO 2024-22A SUB	Jersey			04/19/2037				700		674
ANCHC 2019-13X SUB	Cayman Islands		17.87%	04/15/2034				750		463
ANCHC 2020-15A SUB	Cayman Islands		14.04%	07/20/2034				1,250		882
ANCHC 2021-20A SUB	Cayman Islands		9.87%	01/20/2035				3,500		1,923
ANCHC 2021-20X SUB	Cayman Islands		4.07%	01/20/2035				1,150		632
ANCHF 2015-1A SBR1	Cayman Islands			07/28/2037				4,860		3,159
ANCHF 2015-2A SBRA	Cayman Islands			04/25/2038				4,550		2,595
ANCHF 2016-3A SB1R	Cayman Islands			01/28/2039				2,840		1,794
ANCHF 2016-3A SUBR	Cayman Islands			01/28/2039				520		329
ANCHF 2016-4A SUBA	Cayman Islands			04/27/2039				4,830		2,850
ANCHF 2018-5A SUB2	Cayman Islands			04/25/2036				4,900		2,836
ANCHF 2018-6A SUB2	Cayman Islands			07/25/2036				1,800		780
ANCHF 2019-7A SUB2	Cayman Islands			04/25/2037				1,420		714
ANCHF 2019-8A SUBA	Cayman Islands			07/25/2037				404		197
ANCHF 2019-9A SUB	Cayman Islands			10/25/2037				680		402
ANCHF 2019-9A SUBA	Cayman Islands			10/25/2037				250		148
ANCHF 2020-10A SUBA	Cayman Islands			04/25/2038				1,731		831

86     Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Collateralized Loan Obligations — Equity^(d)(e)(continued)

				Maturity	Acquisition		Principal		Fair		% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)		Assets
ANCHF 2021-13A SUB	Cayman Islands			07/27/2039			$	640	$	384
ATRM 15A SUB	Cayman Islands		20.28%	01/23/2031				4,080		2,070
BARK 2021-1A SUB	Cayman Islands		22.77%	04/20/2034				250		177
BCC 2017-2A SUB	Cayman Islands		16.63%	07/25/2034				4,530		2,486
BCC 2018-1A SUB	Cayman Islands		11.67%	04/23/2031				1,420		297
BCC 2019-2A SUB	Cayman Islands		21.60%	10/17/2032				810		314
BCC 2020-2A SUB	Cayman Islands		48.25%	07/19/2034				800		410
BCC 2021-2A SUB	Cayman Islands		14.72%	07/16/2034				1,000		507
BCC 2022-1A SUB	Cayman Islands		19.54%	04/18/2035				6,750		4,156
BCC 2024-2A SUB	Cayman Islands			07/15/2037				1,620		1,508
CANYC 2019-1A SUB	Cayman Islands		21.83%	07/15/2037				2,798		1,059
CEDF 2016-5A SUB	Cayman Islands		21.69%	07/17/2031				2,000		910
CGMS 2018-3A SUB	Cayman Islands			10/15/2030				750		264
CGMS 2018-4A SUB	Cayman Islands		13.70%	01/20/2031				2,310		1,047
CGMS 2019-3A SUB	Cayman Islands		20.83%	04/20/2037				4,600		3,178
CGMS 2021-2A SUB	Cayman Islands		20.61%	04/20/2034				5,460		3,728
CGMS 2021-4A SUB	Cayman Islands		21.38%	04/20/2034				3,060		2,183
CGMS 2021-5A SUB	Cayman Islands		21.80%	07/20/2034				500		311
CGMS 2021-8A SUBA	Cayman Islands		19.97%	10/15/2034				1,000		629
CGMS 2023-5A SUB	Cayman Islands			01/27/2036				3,080		2,832
CGMS 2024-3A SUB	Cayman Islands			07/25/2036				3,750		3,243
CIFC 2015-4A SUB	Cayman Islands		14.74%	04/20/2034				2,252		784
CIFC 2019-1A SUB	Cayman Islands		28.82%	04/20/2032				1,500		848
CIFC 2019-FAL SUB	Cayman Islands		12.54%	01/20/2033				3,050		1,773

Semi Annual Report 2024     87

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Collateralized Loan Obligations — Equity^(d)(e) (continued)

				Maturity	Acquisition		Principal		Fair		% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)		Assets
CIFC 2020-3A SUB	Cayman Islands		16.44%	10/20/2034			$	1,000	$	769
CIFC 2021-2A SUB	Cayman Islands		22.46%	04/15/2034				3,080		2,164
CIFC 2021-5A SUB	Cayman Islands		21.53%	07/15/2034				5,200		3,498
CIFC 2021-7A SUB	Cayman Islands		18.44%	01/23/2035				250		183
CIFC 2022-2A SUBB	Cayman Islands			04/19/2035				1,900		1,513
CIFC 2024-3A SUB	Cayman Islands			07/21/2037				680		621
DAVIS 2022-1A M1	Cayman Islands			04/20/2035				7,250		101
DAVIS 2022-1A M2	Cayman Islands			04/20/2035				7,250		201
DAVIS 2022-1A SUB	Cayman Islands		18.51%	04/20/2035				7,250		5,830
DRSLF 2018-58X SUB	Cayman Islands		15.19%	07/17/2031				3,125		780
DRSLF 2020-78A SUB	Cayman Islands		24.07%	04/17/2033				8,494		4,847
DRSLF 2021-95A SUB	Cayman Islands		25.62%	08/20/2034				1,500		820
DRSLF 2022-108A SUB	Jersey		26.13%	07/18/2035				875		576
DRSLF 2022-98A SUB	Cayman Islands		20.64%	04/20/2035				4,000		2,643
DRSLF 2022-98X SUB	Cayman Islands		20.64%	04/20/2035				1,000		661
ELM11 2021-4A SUB	Cayman Islands		19.87%	10/20/2034				4,050		3,665
ELM15 2022-2A INC	Cayman Islands		20.29%	04/22/2035				3,050		2,443
ELM16 2022-3A SUB	Cayman Islands			04/20/2037				3,575		2,493
ELM17 2022-4A SUB	Cayman Islands		20.32%	07/17/2037				2,880		2,366
ELM24 2023-3A SUB	Cayman Islands			12/11/2033				1,555		1,379
ELM26 2024-1A SUB	Cayman Islands			04/18/2037				800		689
ELMW5 2020-2A SUB	Cayman Islands		33.05%	07/24/2031				2,500		2,413
ELMW8 2021-1A SUB	Cayman Islands			01/20/2034				2,003		1,354
ELMW8 2021-1X SUB	Cayman Islands			01/20/2034				385		260

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Collateralized Loan Obligations — Equity^(d)(e) (continued)

				Maturity	Acquisition		Principal		Fair		% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)		Assets
GNRT 2022-10A SUB	Cayman Islands		23.90%	07/22/2035			$	6,500	$	5,743
GNRT 7A SUB	Cayman Islands			04/22/2037				4,000		3,242
GNRT 9A SUB	Cayman Islands		24.60%	10/20/2034				1,000		824
HRPK 2020-1A SUB	Cayman Islands		15.92%	04/20/2034				3,985		3,328
INVCO 2021-2A SUB	Cayman Islands		17.16%	07/15/2034				440		231
INVCO 2021-2A Y	Cayman Islands			07/15/2034				44		15
INVCO 2021-3A SUB	Cayman Islands		16.93%	10/22/2034				2,700		1,563
INVCO 2021-3A Y	Cayman Islands			10/22/2034				270		71
INVCO 2021-3X SUB	Cayman Islands		16.93%	10/22/2034				957		554
INVCO 2021-3X Y	Cayman Islands			10/22/2034				96		25
INVCO 2023-1A SUB	Jersey			04/22/2037				2,695		2,102
INVCO 2023-1A Y	Jersey			04/22/2037				270		112
KKR 2024-50A SUB	Cayman Islands			04/20/2037				1,948		1,673
MAGNE 2020-28A SUB	Cayman Islands		25.27%	01/20/2035				5,250		4,164
MAGNE 2024-38A SUB				04/15/2037				362		332
MDPK 2016-22A SUB	Cayman Islands		20.12%	01/15/2033				7,400		3,945
MDPK 2018-31A SUB	Cayman Islands		21.09%	07/23/2037				4,250		2,334
MDPK 2018-32A SUB	Cayman Islands		25.81%	01/22/2048				1,250		664
MDPK 2019-34A SUB	Cayman Islands		25.02%	04/25/2032				780		524
MDPK 2019-37A SUB	Cayman Islands		27.98%	04/15/2037				8,430		6,547
MDPK 2021-38A SUB	Cayman Islands		18.43%	07/17/2034				1,290		974
MDPK 2021-50A SUB	Cayman Islands		19.30%	04/19/2034				2,500		1,907
MDPK 2021-59A SUB	Cayman Islands		17.49%	04/18/2037				5,865		4,632
MDPK 2021-59X SUB	Cayman Islands		17.49%	04/18/2037				1,500		1,185

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Collateralized Loan Obligations — Equity^(d)(e) (continued)

				Maturity	Acquisition		Principal		Fair		% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)		Assets
MDPK 2022-53A SUB	Cayman Islands		19.59%	04/21/2035			$	6,000	$	4,715
MDPK 2022-55A SUB	Cayman Islands		24.71%	07/18/2035				3,025		2,583
MDPK 2023-63A SUB	Cayman Islands		13.61%	04/21/2035				6,050		5,071
MDPK 2024-67A SUB	Cayman Islands			04/25/2037				265		263
OAKC 2012-7A SUB	Cayman Islands		19.60%	02/20/2034				500		256
OAKC 2014-10RA SUB	Cayman Islands		14.92%	04/20/2034				4,658		2,172
OAKC 2014-10RX SUB	Cayman Islands		22.07%	04/20/2034				1,000		466
OAKC 2017-14A SUB	Cayman Islands			01/21/2030				1,268		1,013
OAKC 2017-15A SUB	Cayman Islands			01/20/2030				2,161		1,366
OAKC 2021-16A SUB	Cayman Islands		19.95%	10/18/2034				4,575		3,625
OAKCL 2019-2A SUB	Cayman Islands		16.84%	04/15/2031				3,860		1,660
OAKCL 2019-3A SUB	Cayman Islands		23.26%	10/20/2034				6,229		3,637
OCP 2023-30A SUB	Jersey			01/24/2037				3,850		3,095
OHALF 2013-1A SUB	Cayman Islands		19.55%	04/23/2037				1,935		917
OHALF 2016-1A SUB	Cayman Islands		18.46%	07/20/2037				9,782		7,738
RESPK 2020-1A M2	Cayman Islands			10/15/2034				2,953		98
RESPK 2020-1A SUB	Cayman Islands		17.19%	10/15/2034				2,953		1,728
ROCKP 2021-1A M1	Cayman Islands			04/20/2034				1,000		8
ROCKP 2021-1A M2	Cayman Islands			04/20/2034				1,000		17
ROCKP 2021-1A SUB	Cayman Islands		17.36%	04/20/2034				1,000		683
ROCKP 2021-1X M1	Cayman Islands			04/20/2034				1,100		9
ROCKP 2021-1X M2	Cayman Islands			04/20/2034				1,100		19
ROCKP 2021-1X SUB	Cayman Islands		17.36%	04/20/2034				1,100		752
RRAM 2017-2A SUB	Cayman Islands		11.67%	10/15/2117				500		284

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Collateralized Loan Obligations — Equity^(d)(e) (continued)

				Maturity	Acquisition		Principal			Fair		% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)		Value^(a)			Assets
RRAM 2019-6A SUB	Cayman Islands		13.05%	04/15/2036			$	1,000	$	754
RRAM 2020-8A SUB	Cayman Islands		16.84%	07/15/2037				706		461
RRAM 2021-14A SUB	Cayman Islands		14.11%	04/15/2121				750		486
RRAM 2021-17A SUB	Cayman Islands		17.20%	07/15/2034				1,000		662
RRAM 2021-19X SUB	Cayman Islands		15.93%	10/15/2035				1,166		957
RRAM 2023-25A SUB	Bermuda			10/15/2037				3,810		3,114
RRAM 2023-26A SUB	Cayman Islands		14.73%	04/15/2038				14,483		11,572
RRAMX 2022-7A SUB	Cayman Islands		16.48%	07/15/2122				2,175		1,450
SPEAK 2020-8A SUB	Cayman Islands		16.59%	04/20/2033				6,350		3,556
SPEAK 2024-11A SUB	Cayman Islands			07/18/2037				3,300		2,937
TPRK 2021-1A SUB	Cayman Islands		20.35%	04/15/2034				1,500		1,227
VOYA 2024-1A SUB	Cayman Islands			04/15/2037				3,104		2,773
WELF 2020-1A SUB	Cayman Islands		21.13%	04/15/2033				5,955		2,490
WLLMN 2021-1A M1	Cayman Islands			07/15/2034				2,550		31
WLLMN 2021-1A M2	Cayman Islands			07/15/2034				2,550		67
WLLMN 2021-1A SUB	Cayman Islands		17.17%	07/15/2034				2,550		1,805
Total Collateralized Loan Obligations — Equity (Cost 238,113)										234,047		6.08	%

Private Asset-Backed Investment^(b)(c)(d)(e)
Consumer Discretionary Distribution and Retail
Tricolor Funding SPV 3 LLC			12.94% (1M SOFR + 7.50%)	08/06/2027				1,355		1,355	^(h)(n)
										1,355		0.04	%
Consumer Services
CFG Investments WH Limited			11.44% (1M SOFR + 6.00%)	02/17/2025				4,281		4,281	^(h)
										4,281		0.11	%

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Private Asset-Backed Investment^(b)(c)(d)(e) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Equity Real Estate Investment Trusts (REITs)

Vantage Data Centers Europe S.a r.l.

Luxembourg

10.40% (1M EURIBOR + 6.75%)

05/14/2029

1,044

1,095

^(h)

1,095

0.03

Financial Services

Adonis Financial Funding, LLC

12/15/2026

448

258

^(j)

ASF Copper, L.P.

9.90% (6M EURIBOR + 6.00%)

08/16/2028

€

137

147

ASF Pollock, L.P.

11.31% (3M SOFR + 6.00%)

08/16/2028

272

ASF Pollock, L.P.

9.90% (3M EURIBOR + 6.00%)

08/16/2028

€

ASF VII Wagner B L.P.

United Kingdom

11.31% (3M SOFR +6.00%)

08/16/2028

217

ASF VII Wagner B L.P.

United Kingdom

9.90% (3M EURIBOR + 6.00%)

08/16/2028

€

140

150

ASF VII Wagner L.P.

United Kingdom

11.31% (3M SOFR + 6.00%)

08/16/2028

462

ASF VII Wagner L.P.

United Kingdom

9.90% (3M EURIBOR + 6.00%)

08/16/2028

€

299

321

DFC Global Facility Borrower III LLC

12.93% (1M SOFR + 7.50%)

04/14/2028

CAD

21,655

15,830

^(h)(m)

Harbourvest Global Private Equity Limited

Guernsey

8.84% (3M SOFR + 3.50%)

06/05/2029

9,600

9,456

^(h)

Hg Saturn 2 SumoCo Limited

Guernsey

12.58% (3M SOFR + 7.25%)

01/19/2027

16,887

^(g)

HV Chimera LLC

8.30% (3M SOFR + 2.80%)

08/10/2026

4,062

4,052

Isthmus Capital LLC

9.50% (3M PRIME + 1.00%)

06/13/2030

4,522

Sera 2021 LLC

11.08% (3M SOFR + 5.75%)

03/30/2026

596

^(h)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Private Asset-Backed Investment^(b)(c)(d)(e) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Shares

Amount^(a)

Value^(a)

Assets

Sunbit Receivables Trust IV

12.60% (1M SOFR + 7.25%)

12/22/2026

2,452

^(h)

55,699

1.45

Media and Entertainment

Orange Barrel Media, LLC/ IKE Smart City, LLC

11.09% (1M SOFR + 5.75%)

03/17/2027

1,040

1,034

^(h)

Orange Barrel Media, LLC/ IKE Smart City, LLC

11.09% (1M SOFR + 5.75%)

03/17/2027

4,784

4,754

Orange Barrel Media, LLC/ IKE Smart City, LLC

03/17/2027

^(h)

5,788

0.15

Real Estate Management and Development

Illinois Investment S.a.r.l.

Luxembourg

5.17%

12/31/2026

SEK

31,362

2,721

Illinois Investment S.a.r.l.

Luxembourg

25.00%

04/03/2029

SEK

6,700

632

^(h)

Invesco Vaf V Investments, LLC

11.50%

07/10/2028

3,333

3,300

^(g)

Invesco Vaf V Investments, LLC

11.50% (3M LIBOR + 11.50%)

07/10/2028

1,667

1,650

^(g)

Pallas Funding Trust No.2

Australia

7.04% (1M BBSW + 2.75%)

02/07/2027

AUD

6,808

4,542

^(h)

Pallas Funding Trust No.2

Australia

12.14% (1M BBSW + 7.85%)

02/07/2027

AUD

2,567

1,712

^(h)

Pallas Funding Trust No.2

Australia

10.79% (6M BBSW + 6.50%)

02/07/2027

AUD

4,715

3,145

^(h)

17,702

0.46

Telecommunication Services

Switch Master Holdco, LLC

SOFR + 3.00%)

12/15/2025

11,687

11,103

0.29

Total Private Asset-Backed Investment (Cost 97,467)

97,023

2.52

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Preferred Stock^(b)(c)(d)(e)

				Maturity	Acquisition			Principal	Fair			% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares		Amount^(a)	Value^(a)			Assets

Automobiles and Components
Automotive Keys Investor, LLC					12/22/2020		37,749		$	17	^(g)(k)
Automotive Keys Investor, LLC					01/01/2023		25,000			12	^(g)(k)
										29		—	%
Commercial and Professional Services
KBS Topco, LLC					03/18/2024		901,730			995	^(f)(k)
Marmic Topco, L.P.			8.00%		03/05/2021		57,624			232	^(g)
Visual Edge Technology, Inc.			10.00%		07/20/2023		13			104	^(g)
Visual Edge Technology, Inc.					07/20/2023		17			—	^(k)
WSC Ultimate Holdings, LLC			10.00%		05/24/2024		1,020			102	^(g)
										1,433		0.04	%
Consumer Discretionary Distribution and Retail
GMP Hills, LP			8.00%		11/08/2023		611,000			621	^(g)
Metis Holdco, Inc.		Class A	7.00%		05/04/2021		7,959			9,909	^(g)
Monolith Brands Group, Inc.		Series A			04/14/2022		192,811			952	^(k)
Phoenix YW Parent, Inc.			8.00%		05/31/2024		248			248	^(g)
										11,730		0.30	%
Consumer Services
Aragorn Parent Holdings LP		Series A	10.00%		10/15/2020		50,000			94	^(g)
Family First Bidco Limited	United Kingdom		12.50%		12/01/2022		20,838			—
OMERS Mahomes Investment Holdings LLC			15.00%		07/26/2023		1			13	^(g)
Redwood Services Holdco, LLC		Series D	8.00%		12/31/2020		100,000			310	^(g)
										417		0.01	%

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Preferred Stock^(b)(c)(d)(e) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Financial Services

Aquarian Peninsula Holdings LLC

16.08%

12/29/2022

35,481,024

36,125

^(g)

ASE Royal Aggregator, LLC

Class A

07/31/2023

1,646,000

1,822

^(k)

Corient Holdings, Inc.

Series A

05/23/2023

9,627

11,317

^(k)

The Ultimus Group, LLC

Class A

8.00%

02/01/2019

^(g)

Tikehau Ruby CLO Equity LP

13.71%

04/08/2024

2,401,477

2,351

^(g)

Tikehau Topaz LP

9.00%

06/12/2024

1,609,280

1,657

TVG-TMG Holdings, LLC

Series A

03/31/2022

^(k)

53,299

1.38

Food, Beverage and Tobacco

City Line Investments LLC

Class A

8.00%

08/31/2023

30,038

^(g)

Gotham Greens Holdings, PBC

Series E-1

6.00%

06/29/2022

75,468

6,459

^(f)(g)

Gotham Greens Holdings, PBC

Series E-1

08/02/2023

1,311

_—

^(f)(g)(k)

Watermill Express
Holdings, LLC

Class A

8.00%

04/20/2021

5,000

^(g)

6,576

0.17

Health Care Equipment and Services

Evolent Health, Inc.

Series A

11.48% (3M SOFR + 6.00%)

01/20/2023

^(g)

GMR Buyer Corp.

15.00%

05/20/2024

38,889

37,777

^(g)

Minerva Holdco, Inc.

Series A

10.75%

02/15/2022

21,262

26,346

^(g)

Olympia Acquisition, Inc.

02/28/2022

472

_—

^(g)(k)

Olympia TopCo, L.P.

07/28/2021

2,184

_—

^(g)(k)

OMERS Wildcats
Investment Holdings LLC

Class A

15.00%

08/02/2023

^(g)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Preferred Stock^(b)(c)(d)(e) (continued)

				Maturity	Acquisition			Principal	Fair			% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares		Amount^(a)	Value^(a)			Assets
Symplr Software Intermediate Holdings, Inc.		Series C-1	11.00%		12/22/2020		50		$	61	^(g)
Symplr Software Intermediate Holdings, Inc.		Series C-2	11.00%		06/18/2021		5,980			6,907	^(g)
Symplr Software Intermediate Holdings, Inc.		Series C-3	11.00%		10/12/2021		789			879	^(g)
										72,049		1.87	%
Insurance
High Street HoldCo LLC		Series A-1	10.00%		01/01/2022		3,898,354			4,977	^(g)
High Street HoldCo LLC		Series A-2	10.00%		01/01/2022		789,494			995	^(g)
High Street HoldCo LLC		Series A-3	10.00%		01/01/2022		389,813			487	^(g)
High Street HoldCo LLC		Series A-4	10.00%		01/01/2022		1,480,301			1,835	^(g)
High Street HoldCo LLC		Series A-5	10.00%		01/01/2022		347,693			428	^(g)
High Street HoldCo LLC		Series A-6	10.00%		01/01/2022		660,617			806	^(g)
High Street HoldCo LLC		Series A-7	10.00%		01/01/2022		938,771			1,126	^(g)
High Street HoldCo LLC		Series A-8	10.00%		11/01/2022		409,637			449	^(g)
High Street HoldCo LLC		Series A-9	10.00%		11/08/2022		97,533			107	^(g)
High Street HoldCo LLC		Series A-10	10.00%		12/12/2022		253,585			275	^(g)
High Street HoldCo LLC		Series A-11	10.00%		12/30/2022		331,611			358	^(g)
High Street HoldCo LLC		Series A-12	10.00%		02/01/2023		702,235			751	^(g)
High Street HoldCo LLC		Series A-13	10.00%		04/11/2023		214,572			225	^(g)
High Street HoldCo LLC		Series A-14	10.00%		07/10/2023		136,546			140	^(g)
High Street HoldCo LLC		Series A-15	10.00%		07/18/2023		711,315			726	^(g)
										13,685		0.36	%

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Preferred Stock^(b)(c)(d)(e) (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Materials

Novipax Parent Holding Company, L.L.C.

Class A

12/01/2020

^(g)

Plaskolite PPC Blocker LLC

15.00%

10/31/2023

—

^(g)

—

Media and Entertainment

CFC Funding LLC

9.75%

07/21/2023

4,270

4,478

^(g)

League One Volleyball, Inc.

Series B

07/27/2023

194

^(k)

LiveBarn Inc.

Canada

08/17/2023

648,925

2,572

^(k)

PFL MMA, Inc.

Series E

04/26/2022

7,823

^(k)

PRG III, LLC

Class A

10/06/2020

2,250

594

^(g)

7,670

0.20

Pharmaceuticals, Biotechnology and Life Sciences

Cardinal Topco Holdings, L.P.

Class A

8.00%

09/15/2020

238

^(g)

Cobalt Holdings I, LP

10/01/2021

^(g)

Cobalt Intermediate I, Inc.

Series A

15.59% (3M SOFR + 10.00%)

10/01/2021

8,582

12,478

^(g)

12,723

0.33

Software and Services

Activate holdings (US) Corp.

8.00%

10/11/2023

50,000

^(g)

Appriss Health Intermediate Holdings, Inc.

Series A

11.00%

05/06/2021

3,657

4,965

^(g)

Banyan Software, LP

01/07/2022

16,323

1,471

^(k)

Cority Parent, Inc.

Canada

Class A-1

9.00%

07/02/2019

252

^(g)

DCert Preferred Holdings, Inc.

Series A

10.50%

05/25/2021

22,284

26,933

^(g)

Diligent Preferred Issuer, Inc.

10.50%

04/06/2021

1,476

1,951

^(g)

EZ Elemica Holdings, Inc.

—%

09/18/2019

^(k)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Preferred Stock^(b)(c)(d)(e)(continued)

					Maturity	Acquisition			Principal	Fair			% of Net
Company	Country^(a)	Investment	Interest		Date	Date	Shares		Amount^(a)	Value^(a)			Assets
GSV PracticeTek Holdings, LLC		Class A		8.00%		03/31/2021		269,272		$	315	^(g)
Insightful Science Holdings, LLC				14.00%		04/28/2021		62,340			2,550	^(g)
Knockout Intermediate Holdings I Inc.				11.75%		06/22/2022		7,299			9,376	^(g)
Magic Topco, L.P.		Class A		9.00%		09/21/2020		58			137	^(g)
Packers Software Intermediate Holdings, Inc.		Series A		11.00%		11/12/2020		50			64	^(g)
Packers Software Intermediate Holdings, Inc.		Series A-2		11.00%		12/23/2020		18			23	^(g)
Packers Software Intermediate Holdings, Inc.		Series A-3		11.00%		11/24/2021		24			27	^(g)
Peachtree Parent, Inc.		Series A		13.25%		03/19/2019		25			50	^(g)
Picard Holdco, Inc.		Series A		17.33% (3M SOFR + 12.00%)		09/29/2022		428			463	^(g)
Project Essential Super Parent, Inc.				14.98% (3M SOFR + 9.50%)		04/20/2021		2,963			4,060	^(g)
Sunshine Software Holdings, Inc.		Series A		10.50%		10/15/2021		15,929			17,872	^(g)
SuperMoose NewCo, Inc.				15.00%		04/12/2024		17,961			17,961	^(g)
Titan DI Preferred Holdings, Inc.				13.50%		02/11/2020		—			89	^(g)
Wellington TopCo LP				8.00%		06/05/2024		143,000			143	^(g)
											88,849			2.31	%
Telecommunication Services
6DG TOPCO LIMITED	United Kingdom					02/06/2024		1,371,829,990			—	^(k)
											—			—	%

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Preferred Stock^(b)(c)(d)(e)(continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Transportation

Neovia Acquisition, LLC

Class B

19.41%

11/01/2022

718

981

^(g)

981

0.03

Utilities

Ferrellgas, L.P.

8.96%

03/30/2021

8,898

8,987

^(g)

8,987

0.23

Total Preferred Stock (Cost 287,265)

278,455

7.23

Common Stock

Automobiles and Components

Automotive Keys Investor, LLC

Class A

11/06/2020

62,749

—

^(d)(e)(k)

Clarience Technologies, LLC

Class A

02/12/2024

349

858

^(d)(e)(k)

Highline PPC Blocker LLC

11/04/2020

500

^(d)(e)(k)

Sun TopCo, LP

Class A

09/08/2021

1,000

139

^(d)(e)(k)

Victory Topco, LP

Class A-2

11/10/2023

2,510

343

^(d)(e)(k)

1,410

0.04

Capital Goods

Dynamic NC Investment Holdings, LP

12/30/2020

50,000

^(d)(e)(k)

GB Helios Holdings, L.P.

Series A

05/31/2024

^(d)(e)(k)

Kene Holdings, L.P.

Class A

08/08/2019

50,000

^(d)(e)(k)

208

0.01

Commercial and Professional Services

Bedrock Parent Holdings, LP

Class A

04/22/2021

644

^(d)(e)(k)

Capstone Parent Holdings, LP

Class A

11/12/2020

105

^(d)(e)(k)

Elliott Metron Co-Investor Aggregator L.P.

10/05/2022

1,000,000

1,426

^(d)(e)(k)

KBS Topco, LLC

Class A

03/18/2024

901,730

—

^(d)(e)(f)(k)

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Common Stock (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

KKR Nest Co-Invest L.P.

09/28/2021

50,000

^(d)(e)(k)

Laboratories Topco LLC

Class A

07/23/2021

33,333

^(d)(e)(k)

Landscape Parallel Partners, L.P.

Class A

12/16/2021

162

591

^(d)(e)(k)

North American Fire Ultimate Holdings, LLC

05/19/2021

68,175

293

^(d)(e)(k)

PSP Registrar Co-Investment Fund, L.P.

Class A

08/26/2021

50,000

^(d)(e)(k)

RC V Tecmo Investor LLC

08/14/2020

50,000

^(d)(e)(k)

SSE Parent, LP

Class A-1

06/30/2020

—

^(d)(e)(k)

SSE Parent, LP

Class A-2

06/30/2020

—

^(d)(e)(k)

UPBW Blocker, LLC

03/13/2024

4,700

470

^(d)(e)(k)

WSC Ultimate Holdings, LLC

Class A

05/24/2024

—

^(d)(e)(k)

3,118

0.08

Consumer Discretionary Distribution and Retail

Arko Corp

12/22/2020

106

^(d)(k)

Emerald Lake Pearl Acquisition-A, L.P.

07/19/2021

43,500

^(d)(e)(k)

Fastsigns Holdings Inc.

03/13/2019

145

^(d)(e)(k)

Marcone Yellowstone Holdings, LLC

Class A

06/23/2021

^(d)(e)(k)

Metis Topco, LP

05/04/2021

^(d)(e)(k)

Stonecourt IV Partners LP

10/08/2021

2,423,676

3,237

^(d)(e)(k)

3,560

0.09

Consumer Durables and Apparel

Centric Brands L.P.

Class A

10/09/2020

21,364

361

^(d)(e)(k)

DRS Holdings I, Inc.

11/01/2019

^(d)(e)(k)

SEP Diamond Fund GP, LLC

06/28/2024

2,287,832

2,288

^(d)(e)(k)

2,689

0.07

100

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Common Stock (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Consumer Services

Apex Service Partners Holdings, LLC

Series B

10/24/2023

44,263

1,527

^(d)(e)(k)

CMG Buyer Holdings, Inc.

05/19/2022

173

^(d)(e)(k)

Family First Bidco Limited

United Kingdom

12/01/2022

176

—

^(d)(e)(k)

GS SEER Group Holdings LLC

Class A

04/28/2023

^(d)(e)(k)

IHS Parent Holdings, L.P.

Class A

12/28/2022

25,000

^(d)(e)(k)

KKR Game Changer Co-Invest Feeder II L.P.

06/27/2024

467,000

467

^(d)(e)(k)

LBC Breeze Holdings LLC

Class A

12/06/2021

^(d)(e)(k)

Leviathan Holdings, L.P.

12/27/2022

38,000

^(d)(e)(k)

Northwinds Services Group LLC

05/01/2023

60,684

^(d)(e)(k)

OMERS Mahomes Investment Holdings LLC

Class A

—%

11/16/2020

101

^(d)(e)(k)

PestCo Holdings, LLC

Class A

01/26/2023

^(d)(e)(k)

Vertex Service Partners Holdings, LLC

Class B

11/08/2023

^(d)(e)(k)

ZBS Mechanical Group Co-Invest Fund 2, LLC

10/07/2021

50,000

218

^(d)(e)(k)

2,784

0.07

Consumer Staples Distribution and Retail

KCAKE Holdings Inc.

05/14/2021

^(d)(e)(k)

LJ Perimeter Co-Invest, L.P.

Class A

10/26/2022

50,052

^(d)(e)(k)

REP WWP Coinvest IV, L.P.

01/17/2023

25,000

^(d)(e)(k)

Restaurant Produce and Services Blocker, LLC

Tranche B

05/01/2023

50,000

^(d)(e)(k)

ZB TopCo LLC

Class A

02/09/2022

^(d)(e)(k)

219

0.01

Semi Annual Report 2024

101

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Common Stock (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Energy

Galileo Co-Investment Trust I

New Zealand

07/07/2022

50,000

^(d)(e)(k)

SilverBow Resources, Inc.

06/30/2022

1,214

^(d)(k)

Summit Midstream Partners LP

02/25/2022

24,062

855

^(k)

932

0.02

Financial Services

BCC Blueprint Investments, LLC

09/15/2021

812,511

677

^(d)(e)(k)

Constellation Wealth Capital Fund, L.P.

01/19/2024

404,562

405

^(d)(e)(g)(k)

CWC Fund I Co-Invest (AlTi) LP

03/26/2024

3,276,000

3,276

^(d)(e)(k)

CWC Fund I Co-Invest (Prism) LP

03/27/2024

2,374,000

2,374

^(d)(e)(k)

GTCR (D) Investors LP

09/19/2023

37,037

^(d)(e)(k)

Isthmus Capital LLC

06/13/2023

^(d)(e)(k)

Kelso XI Tailwind Co-Investment, L.P.

09/11/2023

43,595

^(d)(e)(k)

Mars Downstop Loan Purchaser Trust

Class A

02/09/2024

9,696,876

8,782

^(d)(e)(k)

PCS Parent, L.P.

Class A

03/01/2024

80,000

^(d)(e)(k)

Sera 2021 LLC

Class A

03/30/2021

164

^(d)(e)(k)

The Ultimus Group Aggregator, LP

Class A

02/01/2019

—

^(d)(e)(k)

The Ultimus Group Aggregator, LP

Class B

02/01/2019

182

—

^(d)(e)(k)

The Ultimus Group, LLC

Class B

02/01/2019

1,609

^(d)(e)(k)

TVG-TMG Holdings, LLC

03/31/2022

—

^(d)(e)(k)

102

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Common Stock (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

WAAM Topco, LLC

Class A

06/22/2023

41,556

^(e)(k)

0.41

15,967

Food, Beverage and Tobacco

PPC CHG Blocker LLC

12/10/2021

^(d)(e)(k)

—

Health Care Equipment and Services

Asclepius Holdings LLC

02/28/2022

448

—

^(d)(e)(k)

AVE Holdings LP

Class A

03/01/2024

402

404

^(d)(e)(k)

AVE Holdings LP

Class C

11/30/2023

983

199

^(d)(e)(k)

BCPE Co- Invest (A), LP

Class A

02/15/2022

45,000

^(d)(e)(k)

CHPPR Holdings Inc.

12/28/2023

4,700

398

^(e)(k)

Crown CT HoldCo Inc.

Class A

03/08/2022

^(d)(e)(k)

Crown CT Management LLC

03/08/2022

^(d)(e)(k)

KOLN Co-Invest Unblocked, LP

Class A

03/29/2023

^(d)(e)(k)

Network Investco BV

Netherlands

07/08/2022

1,073,830

2,415

^(d)(e)(k)

NSPC Holdings, LLC

02/13/2023

5,360

—

^(d)(e)(k)

Olympia TopCo, L.P.

Class A

09/24/2019

50,000

—

^(d)(e)(k)

OMERS Bluejay Investment Holdings LP

Class A

—%

07/10/2018

^(d)(e)(k)

OMERS Wildcats Investment Holdings LLC

Class A

10/31/2019

216

124

^(d)(e)(k)

SiroMed Equity Holdings, LLC

03/26/2018

3,703

^(d)(e)(k)

VPP Group Holdings, L.P.

12/01/2021

^(d)(e)(k)

VPP Group Holdings, L.P.

Class A2

03/22/2023

—

^(d)(e)(k)

Semi Annual Report 2024

103

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Common Stock (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

WSHP FC Holdings LLC

07/01/2022

368

^(d)(e)(k)

3,884

0.10

Household and Personal Products

CDI Holdings I Corp.

12/22/2021

^(d)(e)(k)

RMCF V CIV XLIV, L.P.

08/20/2021

50,004

^(d)(e)(k)

Silk Holdings I Corp.

05/01/2023

126

^(d)(e)(k)

180

—

Insurance

CFCo, LLC

Class B

09/11/2023

5,035,395

—

^(d)(e)(k)

High Street HoldCo LLC

Series A

10.00%

04/16/2021

50,000

130

^(d)(e)

High Street HoldCo LLC

Series C

10.00%

04/16/2021

563,740

1,472

^(d)(e)

INSZ Holdings, LLC

11/08/2022

31,139

^(d)(e)(k)

INSZ Holdings, LLC

11/30/2023

1,073,000

1,127

^(d)(e)(k)

Maple Acquisition Holdings, LP

Class A-2

11/01/2023

13,871

273

^(d)(e)(k)

Rocket Co-Invest, SLP

Luxembourg

03/20/2024

188,027

245

^(d)(e)(k)

SageSure LLC

Series A

02/18/2022

186

^(d)(e)(k)

3,466

0.09

Materials

ASP-r-pac Holdings LP

Class A

12/29/2021

500

^(d)(e)(k)

KNPAK Holdings, LP

Class A

07/02/2019

100,000

120

^(d)(e)(k)

Meyer Parent, LLC

02/29/2024

12,000

^(d)(e)(k)

Novipax Parent Holding Company, L.L.C.

Class C

12/01/2020

—

^(d)(e)(k)

Plaskolite PPC Blocker LLC

12/14/2018

^(d)(e)(k)

164

—

104

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Common Stock (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Media and Entertainment

Eagle Football Holdings Limited

United Kingdom

09/14/2023

100

^(d)(e)(k)

Sandlot Action Sports, LLC

05/24/2024

3,384

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

Class A

06/24/2021

491,621

680

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

Class B

06/24/2021

491,621

680

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

Class C

06/24/2021

491,621

680

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

Class D

06/24/2021

491,621

680

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

Class E

06/24/2021

491,621

680

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

Class F

06/24/2021

491,621

681

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

Class G

06/24/2021

491,621

681

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

Class H

06/24/2021

491,621

681

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

Class I

06/24/2021

491,621

681

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

06/24/2021

590

^(d)(e)(k)

Storm Investment S.a.r.l.

Luxembourg

04/01/2022

25,565

—

^(d)(e)(k)

6,279

0.16

Pharmaceuticals, Biotechnology and Life Sciences

Athyrium Buffalo LP/ Partnership Interests

Class B

08/25/2023

1,032,980

1,002

^(d)(e)(k)

Athyrium Buffalo LP/ Partnership Interests

06/17/2022

2,097,909

2,035

^(d)(e)(k)

Semi Annual Report 2024

105

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Common Stock (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Cobalt Holdings I, LP

Class A

10/01/2021

500

^(d)(e)(k)

WCI-BXC Investment Holdings, L.P.

11/03/2023

126,000

125

^(d)(e)(k)

3,232

0.08

Real Estate Management and Development

Illinois Investment S.a.r.l.

Luxembourg

Class A

09/15/2021

3,400,700

—

^(d)(e)(k)

Illinois Investment S.a.r.l.

Luxembourg

Class B

09/15/2021

3,400,700

—

^(d)(e)(k)

Illinois Investment S.a.r.l.

Luxembourg

Class C

09/15/2021

3,400,700

—

^(d)(e)(k)

Illinois Investment S.a.r.l.

Luxembourg

Class D

09/15/2021

3,400,700

—

^(d)(e)(k)

Illinois Investment S.a.r.l.

Luxembourg

Class E

09/15/2021

3,400,700

—

^(d)(e)(k)

Illinois Investment S.a.r.l.

Luxembourg

Class F

09/15/2021

3,400,700

—

^(d)(e)(k)

Illinois Investment S.a.r.l.

Luxembourg

Class G

09/15/2021

3,400,700

—

^(d)(e)(k)

Illinois Investment S.a.r.l.

Luxembourg

Class H

09/15/2021

3,400,700

—

^(d)(e)(k)

Illinois Investment S.a.r.l.

Luxembourg

Class I

09/15/2021

3,400,700

—

^(d)(e)(k)

Illinois Investment S.a.r.l.

Luxembourg

09/15/2021

4,081

—

^(d)(e)(k)

Illinois Investment S.a.r.l.

Luxembourg

05/26/2022

106,292

—

^(d)(e)(k)

OPH NEP Investment, LLC

Class B

05/03/2024

664

^(d)(e)(k)

664

0.02

Software and Services

APG Holdings, LLC

Class A

01/03/2020

50,000

^(d)(e)(k)

Astorg VII Co-Invest ERT

Luxembourg

01/31/2020

1,208,500

2,060

^(d)(e)(k)

106

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Common Stock (continued)

Maturity

Acquisition

Principal

Fair

% of Net

Company

Country^(a)

Investment

Interest

Date

Amount^(a)

Value^(a)

Assets

Avaya Holdings Corp.

05/01/2023

2,607

^(e)(k)

Avaya Holdings Corp.

05/01/2023

76,384

530

^(k)

Bobcat Topco, L.P.

Class A-1

06/16/2023

56,770

^(d)(e)(k)

Consilio Investment Holdings, L.P.

Series A

09/15/2022

243

^(d)(e)(k)

Consilio Investment Holdings, L.P.

05/28/2021

5,038

^(d)(e)(k)

Cority Parent, Inc.

Canada

Class B-1

07/02/2019

47,536

^(d)(e)(k)

Denali Apexco LP

Class A

09/15/2021

50,000

^(d)(e)(k)

Destiny Digital Holdings, L.P.

05/27/2021

3,076

^(d)(e)(k)

Elliott Alto Co-Investor Aggregator L.P.

09/28/2022

500,000

1,121

^(d)(e)(k)

EQT IX Co- Investment (E) SCSP

04/16/2021

5,000

^(d)(e)(k)

H&F Unite Partners, L.P.

05/01/2019

50,032

^(d)(e)(k)

Insight PDI Holdings, LLC

Class A

03/19/2019

26,548

^(d)(e)(k)

Magic Topco, L.P.

Class B

09/21/2020

12,975

—

^(d)(e)(k)

Magnesium Co-Invest SCSp

Luxembourg

05/06/2022

^(d)(e)(k)

PS Co-Invest, L.P.

03/05/2021

50,000

^(d)(e)(k)

RMCF VI CIV XLVIII, L.P.

06/08/2022

64,827

^(d)(e)(k)

RMS Group Holdings, Inc.

12/16/2021

^(d)(e)(k)

Rocket Parent, LLC

Class A

12/17/2018

74,502

209

^(d)(e)(k)

Skywalker TopCo, LLC

11/20/2020

25,407

161

^(d)(e)(k)

Sunshine Software Holdings, Inc.

Class A-1

10/15/2021

5,000

^(d)(e)(k)

4,940

0.13

Semi Annual Report 2024

107

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Common Stock (continued)

				Maturity	Acquisition		Principal	Fair			% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)	Value^(a)			Assets

Technology Hardware and Equipment
PerkinElmer Topco GP, L.L.C.		Class A-2			01/21/2022	365		$	53	^(d)(e)(k)
Repairify Holdings, LLC		Class A			06/14/2021	1,655			40	^(d)(e)(k)
Wildcat Parent, LP					02/27/2020	535			193	^(d)(e)(k)
									286		0.01	%
Transportation
Neovia Acquisition, LLC					11/01/2022	6			118	^(e)(k)
Shur-Co HoldCo, Inc.					06/30/2021	500			117	^(d)(e)(k)
									235		0.01	%
Utilities
Apex Clean Energy TopCo, LLC		Class A			11/17/2021	149,776			22,576	^(d)(e)(k)
									22,576		0.59	%
Total Common Stock (Cost 57,634)									76,858		2.00	%
Warrants^(d)(k)
Commercial and Professional Services
Priority Waste Super Holdings, LLC					08/18/2023	4,247			596	^(e)
Priority Waste Super Holdings, LLC					06/28/2024	1,937			—	^(e)(f)
Visual Edge Technology, Inc.					03/22/2018	27,334			—	^(e)
									596		0.02	%
Consumer Discretionary Distribution and Retail
Arko Corp					12/22/2020	55			—
									—		—	%
Food, Beverage and Tobacco
Gotham Greens Holdings, PBC					06/29/2022	31,842			—	^(e)(f)
									—		—	%

108

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Warrants^(d)(k) (continued)

				Maturity	Acquisition		Principal	Fair			% of Net
Company	Country^(a)	Investment	Interest	Date	Date	Shares	Amount^(a)	Value^(a)			Assets

Health Care Equipment and Services
Air Medical Buyer Corp					03/14/2018	122		$	3	^(e)
CHPPR Holdings Inc.					12/28/2023	13,942			321	^(e)
CHPPR Holdings Inc.					12/28/2023	6,604			102	^(e)
CHPPR Holdings Inc.					12/28/2023	7,625			646	^(e)
CHPPR Holdings Inc.					12/28/2023	3,054			259	^(e)
GMR Buyer Corp.					12/17/2021	1,927			41	^(e)
GMR Buyer Corp.					05/20/2024	959,055			—	^(e)
Nomi Health, Inc.					07/21/2023	2,174			—	^(e)
Nomi Health, Inc.					06/12/2024	4,857			18	^(e)
									1,390		0.04	%
Materials
Vobev Holdings, LLC					04/20/2023	1,079			—	^(e)
Vobev Holdings, LLC					11/06/2023	14,652			—	^(e)
									—		—	%
Media and Entertainment
Eagle Football Holdings Limited					12/09/2022	5			124	^(e)
Eagle Football Holdings Limited					12/09/2022	5			40	^(e)
PFL MMA, Inc.					01/19/2021	115,111			37	^(e)
PFL MMA, Inc.					11/23/2022	2,457			7	^(e)
									208		0.01	%
Total Warrants (Cost 978)									2,194		0.06	%
Total Investments (Cost $5,545,295)									5,499,282		142.84	%
Liabilities in Excess of Other Assets									(1,649,370	)	(29.95	)%
Net Assets								$	3,849,912		100.00	%

(a)	Investment holdings in foreign currencies are converted to U.S. Dollars using period end spot rates. Investments are in United States enterprises and all principal balances shown are in U.S. Dollars unless otherwise noted.

Semi Annual Report 2024

109

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

(b)	Variable rate loans bear interest at a rate that may be determined by reference to the Secured Overnight Financing Rate (“SOFR”), or an alternate base rate such as the Bank Bill Swap Bid Rate (“BBSY”), Bank Bill Benchmark Rate (“BKBM”), Canadian Dollar Offered Rate (“CDOR”), Copenhagen Interbank Offered Rate (“CIBOR”), Euro Interbank Offered Rate (“EURIBOR”), Norwegian Interbank Offered Rate (“NIBOR”), Prime Rate (“PRIME”), Sterling Overnight Index Average (“SONIA”), Stockholm Interbank Offered Rate (“STIBOR”) or Warsaw Interbank Offered Rate (“WIBOR”), at the borrower’s option. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread. Stated interest rates in this schedule represents the “all-in” rate as of June 30, 2024.

(c)	Variable rate coupon rate shown as of June 30, 2024.

(d)	These investments, which as of June 30, 2024 represented 141% of the Fund’s net assets or 99% of the Fund’s total assets, may be subject to legal restrictions on sales. Acquisition dates are included above for equity securities that may be subject to legal restrictions on sales.

(e)	Investments whose values were determined using significant unobservable inputs (Level 3) (See Note 4 to the consolidated financial statements).

(f)	These assets are held at CADEX Credit Financing, LLC, a wholly owned special purpose financing vehicle, and are pledged as collateral for a secured revolving credit facility.

(g)	Includes a payment-in-kind provision.

(h)	As of June 30, 2024, the Fund had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and there can be no assurance that such conditions will be satisfied.

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
1011778 B.C. Unlimited Liability Company (New Red Finance, Inc.) (aka Burger King/ Tim Hortons)	1st Lien Delay Draw Term Loan	$	363	$	—		$	363
22 HoldCo Limited	Subordinated Delay Draw Term Loan		1,361		—			1,361
3 Step Sports LLC	1st Lien Revolving Loan		124		—			124
3 Step Sports LLC	1st Lien Delay Draw Term Loan		1,498		—			1,498
Accession Risk Management Group, Inc.	1st Lien Revolving Loan		77		—			77
Accession Risk Management Group, Inc.	1st Lien Delay Draw Term Loan		142		—			142
ACTFY Buyer, Inc.	1st Lien Revolving Loan		476		—			476
ACTFY Buyer, Inc.	1st Lien Delay Draw Term Loan		492		—			492
Activate holdings (US) Corp.	1st Lien Revolving Loan		579		—			579
AffiniPay Midco, LLC	1st Lien Revolving Loan		1,517		—			1,517
AIM Acquisition, LLC	1st Lien Revolving Loan		457		—			457
Airx Climate Solutions, Inc.	1st Lien Revolving Loan		148		(63	)		85
Airx Climate Solutions, Inc.	1st Lien Delay Draw Term Loan		534		—			534
Alcami Corporation	1st Lien Revolving Loan		27		—			27
American Residential Services L.L.C.	1st Lien Revolving Loan		1		—			1
AmeriVet Partners Management, Inc.	1st Lien Delay Draw Term Loan		867		—			867
Amethyst Radiotherapy Group B.V.	1st Lien Delay Draw Term Loan		1,071		—			1,071
Anaplan, Inc.	1st Lien Revolving Loan		381		—			381
Anaqua Parent Holdings, Inc.	1st Lien Revolving Loan		231		—			231
Antenore Bidco SpA	1st Lien Delay Draw Term Loan		1,071		—			1,071
Apex Service Partners, LLC	1st Lien Revolving Loan		2,131		(952	)		1,179
Apex Service Partners, LLC	1st Lien Delay Draw Term Loan		593		—			593
APG Intermediate Holdings Corporation	1st Lien Revolving Loan		1		—			1
Applied Technical Services, LLC	1st Lien Revolving Loan		910		(546	)		364

110

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
Applied Technical Services, LLC	1st Lien Delay Draw Term Loan	$	417	$	—		$	417
Aptean, Inc.	1st Lien Revolving Loan		280		—			280
Aptean, Inc.	1st Lien Delay Draw Term Loan		391		—			391
AQ Sage Buyer, LLC	1st Lien Revolving Loan		50		(12	)		38
AQ Sunshine, Inc.	1st Lien Revolving Loan		1,163		—			1,163
AQ Sunshine, Inc.	1st Lien Delay Draw Term Loan		472		—			472
Ardonagh Finco B.V. and Ardonagh Finco LLC	1st Lien Delay Draw Term Loan		6,393		—			6,393
Arete Bidco Limited	1st Lien Delay Draw Term Loan		3,129		—			3,129
Argenbright Holdings V, LLC	Subordinated Delay Draw Term Loan		207		—			207
Artifact Bidco, Inc.	1st Lien Revolving Loan		252		—			252
Artifact Bidco, Inc.	1st Lien Delay Draw Term Loan		1,437		—			1,437
Artivion, Inc.	1st Lien Revolving Loan		336		(168	)		168
Artivion, Inc.	1st Lien Delay Draw Term Loan		1,199		—			1,199
ASPIRE BIDCO LIMITED	1st Lien Delay Draw Term Loan		1,636		—			1,636
Aspris Bidco Limited	1st Lien Delay Draw Term Loan		400		—			400
ASP-r-pac Acquisition Co LLC	1st Lien Revolving Loan		839		(344	)		495
athenahealth Group Inc.	1st Lien Revolving Loan		2,100		—			2,100
Avalign Technologies, Inc.	1st Lien Revolving Loan		249		—			249
Bamboo Health Holdings, LLC	1st Lien Revolving Loan		212		(32	)		180
Bamboo Purchaser, Inc.	1st Lien Revolving Loan		1		(1	)		—
Bamboo US BidCo LLC	1st Lien Revolving Loan		1,413		—			1,413
Bamboo US BidCo LLC	1st Lien Delay Draw Term Loan		329		—			329
Banyan Software Holdings, LLC	1st Lien Revolving Loan		2		(1	)		1
Banyan Software Holdings, LLC	1st Lien Delay Draw Term Loan		1,974		—			1,974
Beacon Pointe Harmony, LLC	1st Lien Revolving Loan		909		—			909
Beacon Pointe Harmony, LLC	1st Lien Delay Draw Term Loan		8,116		—			8,116
Beacon Wellness Brands, Inc.	1st Lien Revolving Loan		205		—			205
Berner Food & Beverage, LLC	1st Lien Revolving Loan		262		(172	)		90
BGI Purchaser, Inc.	1st Lien Revolving Loan		1,818		(104	)		1,714
BGI Purchaser, Inc.	1st Lien Delay Draw Term Loan		1,595		—			1,595
BGIF IV Fearless Utility Services, Inc.	1st Lien Revolving Loan		709		—			709
BGIF IV Fearless Utility Services, Inc.	1st Lien Delay Draw Term Loan		811		—			811
BlueHalo Global Holdings, LLC (f/k/a Aegis Global Holdings, LLC)	1st Lien Revolving Loan		759		(372	)		387
Bobcat Purchaser, LLC	1st Lien Revolving Loan		306		—			306
Bottomline Technologies, Inc. and Legal Spend Holdings, LLC	1st Lien Revolving Loan		1,811		—			1,811
BR PJK Produce, LLC	1st Lien Delay Draw Term Loan		304		—			304
BradyIFS Holdings, LLC	1st Lien Revolving Loan		1,783		—			1,783
BradyIFS Holdings, LLC	1st Lien Delay Draw Term Loan		763		—			763

Semi Annual Report 2024

111

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
Broadcast Music, Inc.	1st Lien Revolving Loan	$	500	$	—		$	500
Brokers Alliance S.L.	1st Lien Delay Draw Term Loan		3,191		—			3,191
Businessolver.com, Inc.	1st Lien Delay Draw Term Loan		470		—			470
Capstone Acquisition Holdings, Inc.	1st Lien Revolving Loan		1,150		—			1,150
Captive Resources Midco, LLC	1st Lien Revolving Loan		102		—			102
Cardinal Parent, Inc.	1st Lien Revolving Loan		1		—			1
CC Globe Holding II A/S	1st Lien Delay Draw Term Loan		544		—			544
CentralSquare Technologies, LLC	1st Lien Revolving Loan		3,402		—			3,402
CFG Investments WH Limited	1st Lien Revolving Loan		5,000		(4,281	)		719
Chariot Buyer LLC	1st Lien Revolving Loan		100		—			100
Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC	1st Lien Delay Draw Term Loan		1,168		—			1,168
Chillaton Bidco Limited	1st Lien Delay Draw Term Loan		1,974		—			1,974
City Line Distributors LLC	1st Lien Revolving Loan		2		—			2
Clarion Home Services Group, LLC	1st Lien Revolving Loan		417		(42	)		375
Clarion Home Services Group, LLC	1st Lien Delay Draw Term Loan		261		—			261
Cliffwater LLC	1st Lien Revolving Loan		58		—			58
Cloud Software Group, Inc.	1st Lien Revolving Loan		2,574		—			2,574
CMG HoldCo, LLC	1st Lien Revolving Loan		902		(388	)		514
CMG HoldCo, LLC	1st Lien Delay Draw Term Loan		2,362		—			2,362
Cobalt Buyer Sub, Inc.	1st Lien Revolving Loan		895		(576	)		319
Collision SP Subco, LLC	1st Lien Revolving Loan		74		(11	)		63
Collision SP Subco, LLC	1st Lien Delay Draw Term Loan		398		—			398
Compass Bidco Limited.	1st Lien Delay Draw Term Loan		4,613		—			4,613
Compex Legal Services, Inc.	1st Lien Revolving Loan		900		(630	)		270
Confirmasoft AB	1st Lien Delay Draw Term Loan		555		—			555
Conscia Nederland B.V.	1st Lien Delay Draw Term Loan		4,833		—			4,833
Consilio Midco Limited	1st Lien Revolving Loan		706		(241	)		465
Consilio Midco Limited	1st Lien Delay Draw Term Loan		1,164		—			1,164
Continental Acquisition Holdings, Inc.	1st Lien Revolving Loan		1		(1	)		—
Continental Cafe, LLC	1st Lien Revolving Loan		787		(590	)		197
Convera International Holdings Limited	1st Lien Revolving Loan		1,777		—			1,777
Cority Software Inc.	1st Lien Revolving Loan		231		—			231
Cornerstone OnDemand, Inc.	1st Lien Revolving Loan		100		(13	)		87
Coupa Holdings, LLC	1st Lien Revolving Loan		1		—			1
Coupa Holdings, LLC	1st Lien Delay Draw Term Loan		20		—			20
CPIG Holdco Inc.	1st Lien Revolving Loan		2		(1	)		1
Crown CT Parent Inc.	1st Lien Revolving Loan		904		(181	)		723
CST Holding Company	1st Lien Revolving Loan		79		(8	)		71

112

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
Cube Industrials Buyer, Inc. & Cube A&D Buyer Inc.	1st Lien Revolving Loan	$	339	$	—		$	339
CVP Holdco, Inc.	1st Lien Revolving Loan		3,539		—			3,539
CVP Holdco, Inc.	1st Lien Delay Draw Term Loan		5,233		—			5,233
Datix Bidco Limited	1st Lien Revolving Loan		1,423		—			1,423
Datix Bidco Limited	1st Lien Delay Draw Term Loan		891		—			891
DecoPac, Inc.	1st Lien Revolving Loan		2,383		(715	)		1,668
Demakes Borrower, LLC	1st Lien Delay Draw Term Loan		270		—			270
Denali Holdco LLC	1st Lien Revolving Loan		592		—			592
Denali Holdco LLC	1st Lien Delay Draw Term Loan		456		—			456
DFC Global Facility Borrower III LLC	1st Lien Revolving Loan		24,504		(21,655	)		2,849
Diligent Corporation	1st Lien Revolving Loan		669		—			669
Diligent Corporation	1st Lien Delay Draw Term Loan		926		—			926
DOXA Insurance Holdings LLC	1st Lien Revolving Loan		200		—			200
DOXA Insurance Holdings LLC	1st Lien Delay Draw Term Loan		2,561		—			2,561
Draken Bidco Limited	1st Lien Delay Draw Term Loan		1,440		—			1,440
DRS Holdings III, Inc.	1st Lien Revolving Loan		173		—			173
DuraServ LLC	1st Lien Revolving Loan		227		—			227
DuraServ LLC	1st Lien Delay Draw Term Loan		220		—			220
Dynamic NC Aerospace Holdings, LLC	1st Lien Revolving Loan		1,296		(821	)		475
ECG Bidco S.A.S.	1st Lien Delay Draw Term Loan		5,727		—			5,727
Echo Purchaser, Inc.	1st Lien Revolving Loan		213		—			213
Echo Purchaser, Inc.	1st Lien Delay Draw Term Loan		335		—			335
Edmunds GovTech, Inc.	1st Lien Revolving Loan		32		—			32
Edmunds GovTech, Inc.	1st Lien Delay Draw Term Loan		386		—			386
Elemica Parent, Inc.	1st Lien Revolving Loan		1,358		(996	)		362
Elevation Services Parent Holdings, LLC	1st Lien Revolving Loan		631		(303	)		328
Empower Payments Investor, LLC	1st Lien Revolving Loan		60		—			60
Empower Payments Investor, LLC	1st Lien Delay Draw Term Loan		68		—			68
Enverus Holdings, Inc.	1st Lien Revolving Loan		1,053		—			1,053
Enverus Holdings, Inc.	1st Lien Delay Draw Term Loan		438		—			438
Envisage Dental UK Limited	1st Lien Delay Draw Term Loan		972		—			972
Enviva Inc.	1st Lien Revolving Loan		5,087		(5,074	)		13
Enviva Inc.	1st Lien Delay Draw Term Loan		3,900		—			3,900
Epicor Software Corporation	1st Lien Delay Draw Term Loan		729		—			729
Erasmus Acquisition Holding B.V.	1st Lien Delay Draw Term Loan		1,034		—			1,034
ESHA Research, LLC	1st Lien Revolving Loan		76		(65	)		11
Essential Services Holding Corporation	1st Lien Revolving Loan		4,172		—			4,172
Essential Services Holding Corporation	1st Lien Delay Draw Term Loan		4,179		—			4,179

Semi Annual Report 2024

113

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
Eternal Aus Bidco Pty Ltd	1st Lien Delay Draw Term Loan	$	236	$	—		$	236
Evolent Health LLC	1st Lien Revolving Loan		2		(1	)		1
Excel Fitness Holdings, Inc.	1st Lien Delay Draw Term Loan		228		—			228
Excelitas Technologies Corp.	1st Lien Delay Draw Term Loan		2,092		—			2,092
ExtraHop Networks, Inc.	1st Lien Revolving Loan		252		—			252
ExtraHop Networks, Inc.	1st Lien Delay Draw Term Loan		930		—			930
Fever Labs, Inc.	1st Lien Revolving Loan		869		—			869
Fever Labs, Inc.	1st Lien Delay Draw Term Loan		1,635		—			1,635
Finastra USA, Inc.	1st Lien Revolving Loan		2,178		—			2,178
FL Hawk Intermediate Holdings, Inc.	1st Lien Revolving Loan		1,312		—			1,312
Flint Opco, LLC	1st Lien Revolving Loan		1		—			1
Flint Opco, LLC	1st Lien Delay Draw Term Loan		831		—			831
Flywheel Acquireco, Inc.	1st Lien Revolving Loan		1,665		(1,110	)		555
Foundation Consumer Brands, LLC	1st Lien Revolving Loan		389		—			389
Foundation Risk Partners, Corp.	1st Lien Revolving Loan		3,847		—			3,847
Foundation Risk Partners, Corp.	1st Lien Delay Draw Term Loan		4,170		—			4,170
Galway Borrower LLC	1st Lien Revolving Loan		1,143		(157	)		986
Galway Borrower LLC	1st Lien Delay Draw Term Loan		1,346		—			1,346
GC Waves Holdings, Inc.	1st Lien Revolving Loan		173		—			173
GC Waves Holdings, Inc.	1st Lien Delay Draw Term Loan		1,862		—			1,862
Gestion ABS Bidco Inc./ABS Bidco Holdings Inc.	1st Lien Revolving Loan		72		—			72
Gestion ABS Bidco Inc./ABS Bidco Holdings Inc.	1st Lien Delay Draw Term Loan		236		—			236
Gilfoyle Bidco AB	1st Lien Delay Draw Term Loan		857		—			857
Global Music Rights, LLC	1st Lien Revolving Loan		733		—			733
GNZ Energy Bidco Limited	1st Lien Delay Draw Term Loan		1,196		—			1,196
GraphPAD Software, LLC	1st Lien Revolving Loan		1,954		—			1,954
GraphPAD Software, LLC	1st Lien Delay Draw Term Loan		4,665		—			4,665
GS SEER Group Borrower LLC	1st Lien Revolving Loan		37		—			37
GS SEER Group Borrower LLC	1st Lien Delay Draw Term Loan		78		—			78
GTCR F Buyer Corp.	1st Lien Revolving Loan		45		—			45
GTCR F Buyer Corp.	1st Lien Delay Draw Term Loan		145		—			145
Guidepoint Security Holdings, LLC	1st Lien Revolving Loan		200		—			200
Guidepoint Security Holdings, LLC	1st Lien Delay Draw Term Loan		295		—			295
Hakken Bidco B.V.	1st Lien Delay Draw Term Loan		800		—			800
Hamsard 3713 Limited	1st Lien Delay Draw Term Loan		3,752		—			3,752
Harbourvest Global Private Equity Limited	1st Lien Revolving Loan		24,000		(9,600	)		14,400
Heavy Construction Systems Specialists, LLC	1st Lien Revolving Loan		410		—			410

114

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
Helios Service Partners, LLC & Astra Service Partners, LLC	1st Lien Revolving Loan	$	1	$	—		$	1
Helios Service Partners, LLC & Astra Service Partners, LLC	1st Lien Delay Draw Term Loan		680		—			680
HH-Stella, Inc.	1st Lien Revolving Loan		444		(127	)		317
HH-Stella, Inc.	1st Lien Delay Draw Term Loan		2,025		—			2,025
Higginbotham Insurance Agency, Inc.	1st Lien Delay Draw Term Loan		560		—			560
High Street Buyer, Inc.	1st Lien Revolving Loan		688		—			688
High Street Buyer, Inc.	1st Lien Delay Draw Term Loan		6,270		—			6,270
Highline Aftermarket Acquisition, LLC	1st Lien Revolving Loan		1		—			1
Hills Distribution, Inc.	1st Lien Revolving Loan		1		(1	)		—
Hills Distribution, Inc.	1st Lien Delay Draw Term Loan		314		—			314
HP RSS Buyer, Inc.	1st Lien Delay Draw Term Loan		731		—			731
HuFriedy Group Acquisition LLC	1st Lien Revolving Loan		2,102		—			2,102
HuFriedy Group Acquisition LLC	1st Lien Delay Draw Term Loan		4,205		—			4,205
Hyland Software, Inc.	1st Lien Revolving Loan		594		—			594
Icefall Parent, Inc.	1st Lien Revolving Loan		154		—			154
Illinois Investment S.a.r.l.	1st Lien Delay Draw Term Loan		316		—			316
Infinity Home Services HoldCo, Inc.	1st Lien Revolving Loan		455		(68	)		387
Infinity Home Services HoldCo, Inc.	1st Lien Delay Draw Term Loan		896		—			896
Inszone Mid, LLC	1st Lien Revolving Loan		122		—			122
Inszone Mid, LLC	1st Lien Delay Draw Term Loan		1,332		—			1,332
Internet Truckstop Group LLC	1st Lien Revolving Loan		302		—			302
IQN Holding Corp.	1st Lien Revolving Loan		628		(73	)		555
IRI Group Holdings, Inc.	1st Lien Revolving Loan		1,356		(944	)		412
Ivanti Software, Inc.	1st Lien Revolving Loan		460		(137	)		323
JMG Group Investments Limited	1st Lien Delay Draw Term Loan		3,959		—			3,959
Kaseya Inc.	1st Lien Revolving Loan		2,372		(598	)		1,774
Kaseya Inc.	1st Lien Delay Draw Term Loan		2,102		—			2,102
Kellermeyer Bergensons Services, LLC	1st Lien Delay Draw Term Loan		190		—			190
Kene Acquisition, Inc.	1st Lien Revolving Loan		265		—			265
Kene Acquisition, Inc.	1st Lien Delay Draw Term Loan		796		—			796
Keystone Agency Partners LLC	1st Lien Revolving Loan		20		—			20
Keystone Agency Partners LLC	1st Lien Delay Draw Term Loan		1,357		—			1,357
Kings Buyer, LLC	1st Lien Revolving Loan		116		(29	)		87
Laboratories Bidco LLC	1st Lien Revolving Loan		1,572		(1,467	)		105
LeanTaaS Holdings, Inc.	1st Lien Delay Draw Term Loan		2,353		—			2,353
Leviathan Intermediate Holdco, LLC	1st Lien Revolving Loan		13		—			13
LGDN Bidco Limited	1st Lien Delay Draw Term Loan		273		—			273

Semi Annual Report 2024

115

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
Lightbeam Bidco, Inc.	1st Lien Revolving Loan	$	1	$	—		$	1
Lightbeam Bidco, Inc.	1st Lien Delay Draw Term Loan		365		—			365
LJ Perimeter Buyer, Inc.	1st Lien Delay Draw Term Loan		512		—			512
LJo Finco AB	1st Lien Revolving Loan		2,217		—			2,217
LJo Finco AB	1st Lien Delay Draw Term Loan		4,534		—			4,534
Lowe P27 Bidco Limited	1st Lien Delay Draw Term Loan		513		—			513
Majesco	1st Lien Revolving Loan		624		—			624
Marmic Purchaser, LLC	1st Lien Revolving Loan		287		(201	)		86
Marmic Purchaser, LLC	1st Lien Delay Draw Term Loan		470		—			470
Mavis Tire Express Services Topco, Corp.	1st Lien Revolving Loan		1		—			1
Meyer Laboratory, LLC	1st Lien Revolving Loan		190		—			190
Meyer Laboratory, LLC	1st Lien Delay Draw Term Loan		224		—			224
Micromeritics Instrument Corp.	1st Lien Revolving Loan		331		—			331
Mimecast Borrowerco, Inc.	1st Lien Delay Draw Term Loan		3,105		—			3,105
Monica Holdco (US), Inc.	1st Lien Revolving Loan		1,009		(1,002	)		7
Mr. Greens Intermediate, LLC	1st Lien Revolving Loan		114		—			114
Mr. Greens Intermediate, LLC	1st Lien Delay Draw Term Loan		967		—			967
MRI Software LLC	1st Lien Revolving Loan		541		—			541
MRI Software LLC	1st Lien Delay Draw Term Loan		265		—			265
Mustang Prospects Purchaser, LLC	1st Lien Revolving Loan		284		—			284
Mustang Prospects Purchaser, LLC	1st Lien Delay Draw Term Loan		720		—			720
MWG BidCo ApS	1st Lien Delay Draw Term Loan		859		—			859
Nelipak Holding Company	1st Lien Revolving Loan		533		(140	)		393
Nelipak Holding Company	1st Lien Delay Draw Term Loan		1,165		—			1,165
Neptune BidCo US Inc.	1st Lien Revolving Loan		2,988		—			2,988
Network Bidco B.V.	1st Lien Delay Draw Term Loan		1,449		—			1,449
New Churchill Holdco LLC	1st Lien Revolving Loan		151		(15	)		136
New Churchill Holdco LLC	1st Lien Delay Draw Term Loan		1,578		—			1,578
Next Holdco, LLC	1st Lien Revolving Loan		37		—			37
Next Holdco, LLC	1st Lien Delay Draw Term Loan		255		—			255
NMC Skincare Intermediate Holdings II, LLC	1st Lien Revolving Loan		465		(154	)		311
North American Fire Holdings, LLC	1st Lien Revolving Loan		411		(257	)		154
North American Science Associates, LLC	1st Lien Revolving Loan		2,500		(2,083	)		417
North Haven Fairway Buyer, LLC	1st Lien Revolving Loan		13		(11	)		2
North Haven Fairway Buyer, LLC	1st Lien Delay Draw Term Loan		1,827		—			1,827
North Haven Stack Buyer, LLC	1st Lien Revolving Loan		459		(79	)		380
North Haven Stack Buyer, LLC	1st Lien Delay Draw Term Loan		869		—			869
North Star Acquisitionco, LLC and Toucan Bidco Limited	1st Lien Revolving Loan		621		(94	)		527

116

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
North Star Acquisitionco, LLC and Toucan Bidco Limited	1st Lien Delay Draw Term Loan	$	498	$	—		$	498
Northwinds Holding, Inc.	1st Lien Revolving Loan		885		(310	)		575
Northwinds Holding, Inc.	1st Lien Delay Draw Term Loan		1,021		—			1,021
Oakbridge Insurance Agency LLC	1st Lien Revolving Loan		113		—			113
Oakbridge Insurance Agency LLC	1st Lien Delay Draw Term Loan		626		—			626
Odevo AB	1st Lien Delay Draw Term Loan		9,169		—			9,169
Olympia Acquisition, Inc.	1st Lien Delay Draw Term Loan		54		—			54
OMH-HealthEdge Holdings, LLC	1st Lien Revolving Loan		878		—			878
Orange Barrel Media, LLC/IKE Smart City, LLC	1st Lien Revolving Loan		2,080		—			2,080
Orange Barrel Media, LLC/IKE Smart City, LLC	1st Lien Delay Draw Term Loan		2,496		—			2,496
Pallas Funding Trust No.2	1st Lien Delay Draw Term Loan		1,674		—			1,674
Panther NewCo	1st Lien Delay Draw Term Loan		1,274		—			1,274
Paragon 28, Inc.	1st Lien Revolving Loan		2		(1	)		1
Paragon 28, Inc.	1st Lien Delay Draw Term Loan		1,217		—			1,217
Pathstone Family Office LLC	1st Lien Revolving Loan		190		—			190
Pathstone Family Office LLC	1st Lien Delay Draw Term Loan		722		—			722
Patriot Growth Insurance Services, LLC	1st Lien Revolving Loan		250		—			250
PCIA SPV-3, LLC	1st Lien Revolving Loan		321		—			321
PCIA SPV-3, LLC	1st Lien Delay Draw Term Loan		619		—			619
PCS Midco, Inc.	1st Lien Revolving Loan		74		(13	)		61
PCS Midco, Inc.	1st Lien Delay Draw Term Loan		306		—			306
PDDS Holdco, Inc.	1st Lien Revolving Loan		58		(17	)		41
PDDS Holdco, Inc.	1st Lien Delay Draw Term Loan		192		—			192
PDI TA Holdings, Inc.	1st Lien Revolving Loan		185		—			185
PDI TA Holdings, Inc.	1st Lien Delay Draw Term Loan		476		—			476
People Corporation	1st Lien Revolving Loan		656		—			656
People Corporation	1st Lien Delay Draw Term Loan		558		—			558
Perigon Wealth Management, LLC	1st Lien Revolving Loan		250		—			250
Perigon Wealth Management, LLC	1st Lien Delay Draw Term Loan		1,690		—			1,690
PestCo, LLC	1st Lien Revolving Loan		1		—			1
PestCo, LLC	1st Lien Delay Draw Term Loan		74		—			74
Phoenix YW Buyer, Inc.	1st Lien Revolving Loan		979		—			979
PracticeTek Purchaser, LLC	1st Lien Revolving Loan		2		(1	)		1
PracticeTek Purchaser, LLC	1st Lien Delay Draw Term Loan		2,254		—			2,254
Precision Concepts International LLC	1st Lien Revolving Loan		311		(62	)		249
Premier Specialties, Inc.	1st Lien Revolving Loan		386		(135	)		251
Premiere Buyer, LLC	1st Lien Revolving Loan		891		—			891

Semi Annual Report 2024

117

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
Premiere Buyer, LLC	1st Lien Delay Draw Term Loan	$	511	$	—		$	511
Premise Health Holding Corp.	1st Lien Revolving Loan		387		—			387
Prime Buyer, L.L.C.	1st Lien Revolving Loan		3,985		(199	)		3,786
Prime Dental Alliance B.V.	1st Lien Delay Draw Term Loan		900		—			900
Priority Waste Holdings LLC	1st Lien Revolving Loan		2		(1	)		1
ProfitSolv Purchaser, Inc.	1st Lien Revolving Loan		809		(462	)		347
ProfitSolv Purchaser, Inc.	1st Lien Delay Draw Term Loan		964		—			964
ProFund S.a r.l.	1st Lien Delay Draw Term Loan		386		—			386
Project Essential Bidco, Inc.	1st Lien Revolving Loan		121		—			121
Proofpoint, Inc.	1st Lien Revolving Loan		240		—			240
PSC Parent, Inc.	1st Lien Revolving Loan		2,050		(126	)		1,924
PSC Parent, Inc.	1st Lien Delay Draw Term Loan		740		—			740
Pushpay USA Inc.	1st Lien Revolving Loan		18		—			18
Pye-Barker Fire & Safety, LLC	1st Lien Revolving Loan		689		(86	)		603
Pye-Barker Fire & Safety, LLC	1st Lien Delay Draw Term Loan		4,113		—			4,113
QF Holdings, Inc.	1st Lien Revolving Loan		317		(116	)		201
Quick Quack Car Wash Holdings, LLC	1st Lien Revolving Loan		366		—			366
Quick Quack Car Wash Holdings, LLC	1st Lien Delay Draw Term Loan		753		—			753
Radius Aerospace, Inc.	1st Lien Revolving Loan		860		(330	)		530
Raptor Technologies, LLC (Sycamore Bidco Ltd)	1st Lien Revolving Loan		498		—			498
Rawlings Sporting Goods Company, Inc.	1st Lien Revolving Loan		2		(1	)		1
RB Holdings Interco, LLC	1st Lien Revolving Loan		697		(488	)		209
Reagent Chemical & Research, LLC	1st Lien Revolving Loan		564		—			564
Reddy Ice LLC	1st Lien Revolving Loan		3,438		(1,186	)		2,252
Reddy Ice LLC	1st Lien Delay Draw Term Loan		8,627		—			8,627
Redwood Services, LLC	1st Lien Revolving Loan		282		(106	)		176
Redwood Services, LLC	1st Lien Delay Draw Term Loan		4,751		—			4,751
Registrar Intermediate, LLC	1st Lien Revolving Loan		765		(217	)		548
Relativity ODA LLC	1st Lien Revolving Loan		1		—			1
Revalize, Inc.	1st Lien Revolving Loan		227		(85	)		142
RMS Holdco II, LLC	1st Lien Revolving Loan		883		—			883
Rodeo AcquisitionCo LLC	1st Lien Revolving Loan		312		(215	)		97
RSK Group Limited	1st Lien Delay Draw Term Loan		611		—			611
Rubicone Bidco Limited	1st Lien Delay Draw Term Loan		702		—			702
SageSure Holdings, LLC	1st Lien Delay Draw Term Loan		2,596		—			2,596
Saldon Holdings, Inc.	1st Lien Revolving Loan		470		—			470
Saldon Holdings, Inc.	1st Lien Delay Draw Term Loan		235		—			235
Schill Landscaping and Lawn Care Services, LLC	1st Lien Revolving Loan		720		(324	)		396

118

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
Schill Landscaping and Lawn Care Services, LLC	1st Lien Delay Draw Term Loan	$	742	$	—		$	742
SCM Insurance Services Inc.	1st Lien Revolving Loan		1		—			1
Sera 2021 LLC	1st Lien Delay Draw Term Loan		390		—			390
Service Logic Acquisition, Inc.	1st Lien Revolving Loan		1,007		—			1,007
Seventeen Group Limited	1st Lien Delay Draw Term Loan		437		—			437
SG Acquisition, Inc.	1st Lien Revolving Loan		418		—			418
Shermco Intermediate Holdings, Inc.	1st Lien Revolving Loan		1,000		(800	)		200
Shermco Intermediate Holdings, Inc.	1st Lien Delay Draw Term Loan		232		—			232
Sigma Electric Manufacturing Corporation	1st Lien Revolving Loan		1		—			1
Silk Holdings III Corp.	1st Lien Revolving Loan		5,350		—			5,350
Smarsh Inc.	1st Lien Revolving Loan		227		(109	)		118
Smarsh Inc.	1st Lien Delay Draw Term Loan		445		—			445
Solar Bidco Limited	1st Lien Delay Draw Term Loan		789		—			789
Spark Purchaser, Inc.	1st Lien Revolving Loan		281		—			281
Spitfire Bidco Limited	1st Lien Delay Draw Term Loan		3,129		—			3,129
ST Athena Global LLC	1st Lien Revolving Loan		696		(58	)		638
ST Athena Global LLC	1st Lien Delay Draw Term Loan		376		—			376
Steward Partners Global Advisory, LLC	1st Lien Delay Draw Term Loan		493		—			493
Sugar PPC Buyer LLC	1st Lien Delay Draw Term Loan		1		—			1
Sun Acquirer Corp.	1st Lien Revolving Loan		1,059		—			1,059
Sun Acquirer Corp.	1st Lien Delay Draw Term Loan		1,215		—			1,215
Sunbit Receivables Trust IV	1st Lien Revolving Loan		5,000		(2,452	)		2,548
Sundance Group Holdings, Inc.	1st Lien Revolving Loan		1		(1	)		—
Sunvair Aerospace Group, Inc.	1st Lien Revolving Loan		653		—			653
Sunvair Aerospace Group, Inc.	1st Lien Delay Draw Term Loan		1,683		—			1,683
SV Newco 2, Inc.	1st Lien Revolving Loan		637		—			637
SV Newco 2, Inc.	1st Lien Delay Draw Term Loan		637		—			637
Symplr Software Inc.	1st Lien Revolving Loan		1		—			1
Systems Planning and Analysis, Inc.	1st Lien Revolving Loan		1,004		—			1,004
Tandarts Today Holding B.V.	1st Lien Delay Draw Term Loan		2,016		—			2,016
TCP Hawker Intermediate LLC	1st Lien Revolving Loan		595		(125	)		470
TCP Hawker Intermediate LLC	1st Lien Delay Draw Term Loan		301		—			301
The Hiller Companies, LLC	1st Lien Revolving Loan		965		(32	)		933
The Hiller Companies, LLC	1st Lien Delay Draw Term Loan		1,048		—			1,048
The Mather Group, LLC	1st Lien Revolving Loan		750		(350	)		400
The Mather Group, LLC	1st Lien Delay Draw Term Loan		501		—			501
The Ultimus Group Midco, LLC	1st Lien Revolving Loan		537		—			537
The Ultimus Group Midco, LLC	1st Lien Delay Draw Term Loan		448		—			448

Semi Annual Report 2024

119

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
Thermostat Purchaser III, Inc.	1st Lien Revolving Loan	$	100	$	—		$	100
Trader Corporation	1st Lien Revolving Loan		13		—			13
Truck-Lite Co., LLC and Ecco Holdings Corp.	1st Lien Revolving Loan		1,332		(44	)		1,288
Truck-Lite Co., LLC and Ecco Holdings Corp.	1st Lien Delay Draw Term Loan		1,229		—			1,229
Truist Insurance Holdings, LLC	1st Lien Revolving Loan		653		(83	)		570
TSS Buyer, LLC	1st Lien Delay Draw Term Loan		108		—			108
Two Six Labs, LLC	1st Lien Revolving Loan		2,561		—			2,561
Two Six Labs, LLC	1st Lien Delay Draw Term Loan		3,768		—			3,768
Unifi Aviation North America, LLC	1st Lien Revolving Loan		1		(1	)		—
Unifi Aviation North America, LLC	1st Lien Delay Draw Term Loan		565		—			565
United Digestive MSO Parent, LLC	1st Lien Revolving Loan		130		(52	)		78
United Digestive MSO Parent, LLC	1st Lien Delay Draw Term Loan		834		—			834
UP Intermediate II LLC	1st Lien Revolving Loan		326		—			326
US Salt Investors, LLC	1st Lien Revolving Loan		679		—			679
Vantage Data Centers Europe S.a r.l.	1st Lien Delay Draw Term Loan		5,877		—			5,877
Verista, Inc.	1st Lien Revolving Loan		2,000		(167	)		1,833
Vertex Service Partners, LLC	1st Lien Revolving Loan		210		(30	)		180
Vertex Service Partners, LLC	1st Lien Delay Draw Term Loan		558		—			558
Visual Edge Technology, Inc.	1st Lien Delay Draw Term Loan		50		—			50
Vobev, LLC	1st Lien Revolving Loan		1		(1	)		—
Vobev, LLC	1st Lien Delay Draw Term Loan		767		—			767
VPP Intermediate Holdings, LLC	1st Lien Revolving Loan		315		—			315
VPP Intermediate Holdings, LLC	1st Lien Delay Draw Term Loan		2,020		—			2,020
VRC Companies, LLC	1st Lien Revolving Loan		1,342		—			1,342
W.S. Connelly & Co., LLC	1st Lien Revolving Loan		1,016		—			1,016
W.S. Connelly & Co., LLC	1st Lien Delay Draw Term Loan		542		—			542
Watermill Express, LLC	1st Lien Revolving Loan		380		(142	)		238
Waverly Advisors, LLC	1st Lien Revolving Loan		375		(200	)		175
Waverly Advisors, LLC	1st Lien Delay Draw Term Loan		2,631		—			2,631
WCI-BXC Purchaser, LLC	1st Lien Revolving Loan		34		—			34
Wealth Enhancement Group, LLC	1st Lien Revolving Loan		972		—			972
Wealth Enhancement Group, LLC	1st Lien Delay Draw Term Loan		580		—			580
WebPT, Inc.	1st Lien Revolving Loan		216		(31	)		185
Wellington Bidco Inc.	1st Lien Revolving Loan		804		(110	)		694
Wellington Bidco Inc.	1st Lien Delay Draw Term Loan		653		—			653
Wellness AcquisitionCo, Inc.	1st Lien Revolving Loan		504		—			504
Wellness AcquisitionCo, Inc.	1st Lien Delay Draw Term Loan		335		—			335
Wildcat BuyerCo, Inc.	1st Lien Revolving Loan		255		—			255
Wildcat BuyerCo, Inc.	1st Lien Delay Draw Term Loan		330		—			330

120

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CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

		Total revolving
		and delayed draw		Less: funded			Total unfunded
Company	Investment Type	loan commitments		commitments			commitments
Witherslack Bidco Limited	1st Lien Delay Draw Term Loan	$	520	$	—		$	520
WorkWave Intermediate II, LLC	1st Lien Revolving Loan		459		—			459
WorkWave Intermediate II, LLC	1st Lien Delay Draw Term Loan		460		—			460
World Insurance Associates, LLC	1st Lien Revolving Loan		59		—			59
World Insurance Associates, LLC	1st Lien Delay Draw Term Loan		2,571		—			2,571
Worldwide Produce Acquisition, LLC	1st Lien Revolving Loan		20		—			20
WSBidCo Limited	1st Lien Delay Draw Term Loan		364		—			364
WSHP FC Acquisition LLC	1st Lien Revolving Loan		2,945		(2,757	)		188
YE Brands Holdings, LLC	1st Lien Revolving Loan		296		—			296
YE Brands Holdings, LLC	1st Lien Delay Draw Term Loan		176		—			176
ZB Holdco LLC	1st Lien Revolving Loan		637		(204	)		433
ZB Holdco LLC	1st Lien Delay Draw Term Loan		431		—			431
		$	475,303	$	(69,937	)	$	405,366

(i)

This loan or a portion of this loan represents an unsettled loan purchase. The interest rate will be determined at the time of settlement and will be based upon a spread plus the applicable reference rate determined at the time of purchase.

(j)

Loan or bond was on non-accrual status as of June 30, 2024.

(k)

Non-income producing security as of June 30, 2024.

(l)

When-Issued or delayed delivery security based on typical market settlement convention for such security.

(m)

The Fund sold a participating interest of CAD $7,579 in aggregate principal amount outstanding of the portfolio company’s first lien senior secured revolver. As the transaction did not qualify as a “true sale” in accordance with U.S. generally accepted accounting principles (“GAAP”), the Fund recorded a corresponding secured borrowing of $5,599 at fair value, included in “accrued expenses and other payables” in the consolidated statement of assets and liabilities. As of June 30, 2024, the interest rate in effect for the secured borrowing was 12.93%.

(n)

The Fund sold a participating interest of $795 in aggregate principal amount outstanding of the portfolio company’s first lien senior secured revolver. As the transaction did not qualify as a “true sale” in accordance with GAAP, the Fund recorded a corresponding secured borrowing of $795 at fair value, included in “accrued expenses and other payables” in the consolidated statement of assets and liabilities. As of June 30, 2024, the interest rate in effect for the secured borrowing was 12.94%.

As of June 30, 2024, the aggregate cost of securities for federal income tax purposes was $5,548,988. Unrealized appreciation and depreciation on investments for federal income tax purposes are as follows:

Gross unrealized appreciation	$	92,604
Gross unrealized depreciation		(142,310	)
Net unrealized depreciation	$	(49,706	)

Forward currency contracts as of June 30, 2024 were as follows:

	Notional						Unrealized
	Amount to be		Notional Amount			Settlement	Appreciation/
Description	Purchased		to be Sold		Counterparty	Date	(Depreciation)
Foreign currency forward contract	$	167,955	€	156,646	Goldman Sachs	July 26, 2024	$	152
Foreign currency forward contract	$	141,828	£	112,181	Goldman Sachs	July 26, 2024		(1,942	)
Foreign currency forward contract	$	30,269	SEK	320,430	Goldman Sachs	July 26, 2024		(713	)
Foreign currency forward contract	$	18,452	CAD	25,233	Goldman Sachs	July 18, 2024		(64	)
Foreign currency forward contract	$	11,865	CAD	16,224	Goldman Sachs	July 26, 2024		(26	)
Foreign currency forward contract	$	11,768	NZD	19,321	Goldman Sachs	July 26, 2024		(323	)
Foreign currency forward contract	$	11,592	AUD	17,366	Goldman Sachs	July 26, 2024		(303	)

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121

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

	Notional						Unrealized
	Amount to be		Notional Amount			Settlement	Appreciation/
Description	Purchased		to be Sold		Counterparty	Date	(Depreciation)
Foreign currency forward contract	$	10,093	AUD	15,108	Goldman Sachs	August 20, 2024	$	44
Foreign currency forward contract	$	8,408	DKK	58,471	Goldman Sachs	July 26, 2024		8
Foreign currency forward contract	$	4,270	£	3,371	Goldman Sachs	August 21, 2026		(99	)
Foreign currency forward contract	$	3,731	PLN	15,023	Goldman Sachs	July 26, 2024		(29	)
Foreign currency forward contract	$	1,095	NOK	11,681	Goldman Sachs	July 26, 2024		(27	)
Foreign currency forward contract	AUD	289	$	193	Goldman Sachs	August 20, 2024		2
Foreign currency forward contract	€	27	$	29	Goldman Sachs	July 26, 2024		—
Total							$	(3,320	)

Interest rate swaps as of June 30, 2024 were as follows:

															Change in
													Upfront		Unrealized
		Fund						Maturity	Notional				Payments/		Appreciation/
Description	MRP Shares	Receives			Fund Pays		Counterparty	Date	Amount		Fair Value		Receipts		(Depreciation)
Interest rate swap	Series H MRP Shares		6.250	%	SOFR +1.7420	%	Goldman Sachs	06/07/2027	$	100,000	$	363	$	—	$	363
Interest rate swap	Series I MRP Shares		6.350	%	SOFR +2.0865	%	Goldman Sachs	06/07/2029		50,000		324		—		324
Interest rate swap	Series J MRP Shares		6.350	%	SOFR +2.0895	%	Goldman Sachs	07/03/2029		50,000		338		—		338
Total									$	200,000	$	1,025	$	—	$	1,025

Purchased options outstanding as of June 30, 2024 were as follows:

Options on Equity Indices — Buy Protection

Description	Exercise Price		Expiration Date	Counterparty	Notional Amount		Premium		Fair Value
Call-Chicago Board Options Exchange-VIX US	$	30	07/17/2024	Citigroup Global Markets Inc.	$	715	$	20	$	6
Total Purchased Options on Equity Indices							$	20	$	6

Written options outstanding as of June 30, 2024 were as follows:

Options on Equity Indices — Sell Protection

Description	Exercise Price		Expiration Date	Counterparty	Notional Amount		Premium			Fair Value
Call-Chicago Board Options Exchange-VIX US	$	40	07/17/2024	Citigroup Global Markets Inc.	$	715	$	(11	)	$	(3	)
Total Written Options							$	(11	)	$	(3	)

122

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CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Swap Agreements outstanding as of June 30, 2024 were as follows:

Swap Agreements: Centrally Cleared or Exchange Traded

Credit Default Swaps on Credit Indices — Buy Protection (1)

												Upfront
		Fixed										Premiums			Unrealized
	Payment	Deal Pay					Notional					Paid			Appreciation
Description	Frequency	Rate			Expiration Date	Exchange	Amount (2)		Value (3)			(Received)			(Depreciation)
GT CDS USD SR	Q		5.00	%	12/20/2028	ICE	$	1,925	$	(187	)	$	(133	)	$	(54	)
CDX HY S41 5Y	Q		5.00	%	12/20/2028	ICE		10,395		(680	)		(618	)		(62	)
Total Swap Agreements — Buy Protection: Centrally Cleared or Exchange Traded									$	(867	)	$	(751	)	$	(116	)

Swap Agreements: Over the Counter

Credit Default Swaps on Credit Indices — Buy Protection (1)

											Upfront
		Fixed									Premiums			Unrealized
	Payment	Deal Pay				Notional					Paid			Appreciation
Description	Frequency	Rate		Expiration Date	Counterparty	Amount (2)		Value (3)			(Received)			(Depreciation)
CDX HY S39 Tranche 15-25	Q	5.00	%	12/20/2027	Goldman Sachs	$	7,418	$	(488	)	$	(427	)	$	(61	)
CMBX.NA.BBB— S9	M	3.00	%	09/17/2058	Goldman Sachs		1,030		173			246			(73	)
Total Swap Agreements — Buy Protection: Over the Counter								$	(315	)	$	(181	)	$	(134	)

Credit Default Swaps on Credit Indices — Sell Protection (4)

											Upfront
		Fixed									Premiums		Unrealized
	Payment	Deal Pay				Notional					Paid		Appreciation
Description	Frequency	Rate		Expiration Date	Exchange	Amount (2)			Value (3)		(Received)		(Depreciation)
SRT CDS Tranche 95.12-99.23	M	5.25	%	09/30/2031	Goldman Sachs	$	(13,533	)	$	63	$	—	$	63
Total Swap Agreements — Sell Protection: Over the Counter									$	63	$	—	$	63

(1)

If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying investments comprising the referenced index or (ii) receive a net settlement amount in the form of cash or investments equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying investments comprising the referenced index.

(2)

The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.

(3)

The quoted market prices and resulting values for credit default swap agreements on credit indices serve as an indicator of the current status of the payment/performance risk and represent the expected amount paid or received for the credit derivative had the notional amount of the swap agreement been closed/sold as of year-end. Increasing values (buy protection) or decreasing values (sell protection), when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.

(4)

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

Semi Annual Report 2024

123

CION Ares Diversified Credit Fund

Consolidated Schedule of Investments (continued)

June 30, 2024 (Unaudited)

(in thousands, except shares, percentages and as otherwise noted)

Abbreviations:

144A	Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.
CLO	Collateralized Loan Obligation

Currencies:

€	Euro Currency
£	British Pounds
$	U.S. Dollars
AUD	Australian Dollars
CAD	Canadian Dollars
DKK	Danish Krone
GBP	British Pounds
NOK	Norwegian Krone
NZD	New Zealand Dollars
PLN	Polish Zloty
SEK	Swedish Krone
USD	U.S. Dollars

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CION Ares Diversified Credit Fund

Consolidated Statement of Assets and Liabilities

June 30, 2024 (Unaudited)
(in thousands)

Assets:
Investments in unaffiliated issuers, at fair value (cost $5,545,295)	$	5,499,282
Derivatives		1,473
Cash		142,750
Cash denominated in foreign currency, at value (cost $6,467)		6,467
Due from brokers		39,665
Receivable for common shares issued by the Fund		31,436
Receivable for securities sold		65,618
Interest and dividend receivable		41,260
Other assets		4,073
Total assets	$	5,832,024

Liabilities:
Debt	$	898,761
Mandatory redeemable preferred shares (liquidation preference $770,000, net of unamortized deferred issuance costs of $(6,220))		763,780
Derivatives		4,017
Payable for securities purchased		237,090
Interest and facility fees payable		12,269
Accrued expenses and other payables		66,195
Total liabilities		1,982,112
Commitments and contingencies (See Note 2)
Net assets	$	3,849,912

Net assets consist of:
Paid-in capital	$	3,839,191
Accumulated undistributed earnings		10,721
Net assets	$	3,849,912

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125

CION Ares Diversified Credit Fund

Consolidated Statement of Assets and Liabilities (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data)

Common shares:
Class A:
Net Assets	$	82,137
Shares Outstanding ($.001 par value; unlimited shares authorized)		3,273
Net Asset Value Per Share	$	25.09
Maximum Offering Price Per Share	$	26.62
Class C:
Net Assets	$	76,630
Shares Outstanding ($.001 par value; unlimited shares authorized)		3,076
Net Asset Value Per Share	$	24.91
Class I:
Net Assets	$	2,973,646
Shares Outstanding ($.001 par value; unlimited shares authorized)		117,259
Net Asset Value Per Share	$	25.36
Class L:
Net Assets	$	12,248
Shares Outstanding ($.001 par value; unlimited shares authorized)		487
Net Asset Value Per Share	$	25.17
Maximum Offering Price Per Share	$	26.29
Class U:
Net Assets	$	548,889
Shares Outstanding ($.001 par value; unlimited shares authorized)		21,762
Net Asset Value Per Share	$	25.22
Class U-2:
Net Assets	$	121,471
Shares Outstanding ($.001 par value; unlimited shares authorized)		4,822
Net Asset Value Per Share	$	25.19
Maximum Offering Price Per Share	$	25.84
Class W:
Net Assets	$	34,891
Shares Outstanding ($.001 par value; unlimited shares authorized)		1,376
Net Asset Value Per Share	$	25.36
Maximum Offering Price Per Share	$	26.15

See accompanying notes to consolidated financial statements.

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Consolidated Statement of Operations

For the six months ended June 30, 2024 (Unaudited)
(in thousands)

Investment income:
Interest	$	273,801
Dividend		13,679
Total investment income		287,480
Expenses:
Management fee (Note 3)		30,580
Incentive fee (Note 3)		29,322
Interest and credit facility fees (Note 6 and 7)		46,334
Shareholder service expense and distribution fees (Note 3)		2,891
Other expenses		8,220
Total operating expenses		117,347
Tax expenses		3,419
Total expenses		120,766
Net investment income		166,714
Realized and unrealized gains (losses) on investments, foreign currency and derivative contracts
Net realized losses on investments		(11,538	)
Net realized losses on securities sold short		(97	)
Net realized losses on derivative contracts		(1,150	)
Net realized losses on foreign currency		(1,300	)
Net unrealized gains on investments		4,414
Net unrealized gains on securities sold short		79
Net unrealized gains on derivative contracts		13,070
Net unrealized gains on foreign currency		5,093
Net realized and unrealized gains on investments, foreign currency and other transactions		8,571
Net increase in net assets resulting from operations	$	175,285

See accompanying notes to consolidated financial statements.

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CION Ares Diversified Credit Fund

Consolidated Statements of Changes in Net Assets

(in thousands, except per share data, percentages and as otherwise noted)

	For the Six Months Ended
	June 30, 2024			For the Year Ended
	(unaudited)			December 31, 2023
Increase (decrease) in net assets from operations:
Net investment income	$	166,714		$	278,441
Net realized losses on investments, foreign currency and other transactions		(14,085	)		(34,449	)
Net unrealized gains on investments, foreign currency and other transactions		22,656			105,518
Net increase from operations		175,285			349,510
Distributions to shareholders from (Note 2):
Distributed earnings — Class A		(3,317	)		(5,157	)
Distributed earnings — Class C		(3,151	)		(5,652	)
Distributed earnings — Class I		(122,178	)		(171,051	)
Distributed earnings — Class L		(507	)		(858	)
Distributed earnings — Class U		(21,301	)		(32,512	)
Distributed earnings — Class U-2		(4,766	)		(6,983	)
Distributed earnings — Class W		(1,493	)		(2,627	)
Total distributions		(156,713	)		(224,840	)
Increase in net assets from operations and distributions		18,572			124,670
Share transactions:
Class A:
Proceeds of shares issued		17,085			16,142
Value of distributions reinvested		564			1,243
Cost of shares repurchased		(4,062	)		(10,903	)
Net increase from share operations		13,587			6,482
Class C:
Proceeds of shares issued		2,088			7,637
Value of distributions reinvested		1,427			2,613
Cost of shares repurchased		(6,585	)		(8,058	)
Net (decrease) increase from share operations		(3,070	)		2,192
Class I:
Proceeds of shares issued		658,447			721,481
Value of distributions reinvested		23,899			40,766
Cost of shares repurchased		(155,128	)		(241,871	)
Net increase from share operations		527,218			520,376
Class L:
Proceeds of shares issued		670			273
Value of distributions reinvested		357			611
Cost of shares repurchased		(126	)		(627	)
Net increase from share operations		901			257

128

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CION Ares Diversified Credit Fund

Consolidated Statements of Changes in Net Assets (continued)

(in thousands, except per share data, percentages and as otherwise noted)

	For the Six Months Ended
	June 30, 2024			For the Year Ended
	(unaudited)			December 31, 2023
Class U:
Proceeds of shares issued		66,860			76,019
Value of distributions reinvested		15,842			24,403
Cost of shares repurchased		(13,786	)		(31,821	)
Net increase from share operations		68,916			68,601
Class U-2:
Proceeds of shares issued		15,512			22,286
Value of distributions reinvested		3,605			5,334
Cost of shares repurchased		(5,039	)		(9,913	)
Net increase from share operations		14,078			17,707
Class W:
Proceeds of shares issued		—			—
Value of distributions reinvested		1,026			1,952
Cost of shares repurchased		(536	)		(1,399	)
Net increase from share operations		490			553
Total increase in net assets		640,692			740,838
Net Assets, beginning of period		3,209,220			2,468,382
Net Assets, end of period	$	3,849,912		$	3,209,220

See accompanying notes to consolidated financial statements.

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129

CION Ares Diversified Credit Fund

Consolidated Statement of Cash Flows

For the six months ended June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Operating activities:
Net increase in net assets resulting from operations	$	175,285
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Purchases of investments		(3,291,560	)
Proceeds from the sale of investments		2,303,118
Purchases to cover securities sold short		(744	)
Purchases of derivative contracts		(351	)
Amortization and accretion of discounts and premiums, net		(9,823	)
Net realized and unrealized losses on investments		7,124
Net realized and unrealized losses on securities sold short		18
Net realized and unrealized gains on derivative contracts		(11,920	)
Net realized and unrealized gains on foreign currency		(3,793	)
Amortization of debt issuance cost		1,733
Payment-in-kind (“PIK”) interest and dividends		(23,229	)
Collections of PIK interest and dividends		1,986
Changes in operating assets and liabilities:
Due from brokers		2,329
Interest and dividend receivable		(7,027	)
Other assets		(1,513	)
Interest and facility fees payable		4,023
Accrued expenses and other payables		8,537
Net cash used in operating activities		(845,807	)
Financing activities:
Borrowings on debt		1,022,000
Repayments of debt		(792,526	)
Proceeds from issuance of mandatory redeemable preferred shares		200,000
Deferred debt and mandatory redeemable preferred shares issuance costs		(2,368	)
Proceeds of common shares issued		754,214
Cost of common shares repurchased		(185,262	)
Distributions to shareholders		(156,713	)
Value of distributions reinvested		46,720
Net cash provided by financing activities		886,065
Change in Cash		40,258
Cash, Beginning of Period		108,959
Cash, End of Period	$	149,217
Supplemental disclosure of cash flow information:
Cash paid for interest on mandatory redeemable preferred shares and credit facility fees during the period	$	38,010
Cash paid for taxes during the period	$	5,539

See accompanying notes to consolidated financial statements.

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CION Ares Diversified Credit Fund

Financial Highlights

(in thousands, except per share data, percentages and as otherwise noted)

	For the Six			For the			For the			For the			For the
	Months Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2024			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2023			2022			2021			2020
Class A
Per share data:
Net asset value, beginning of period	$	24.96		$	23.86		$	25.75		$	25.13		$	25.93
Income from investment operations:
Net investment income^(a)		1.19			2.50			1.62			1.46			1.40
Net realized and unrealized gains (losses)		0.06			0.61			(2.09	)		0.55			(0.80	)
Total income (loss) from investment operations		1.25			3.11			(0.47	)		2.01			0.60
Less distributions declared to shareholders:
From net investment income		(1.12	)		(2.01	)		(1.42	)		(1.39	)		(1.40	)
Total distributions		(1.12	)		(2.01	)		(1.42	)		(1.39	)		(1.40	)
Net asset value, end of period	$	25.09		$	24.96		$	23.86		$	25.75		$	25.13
Total return, excluding expense support^(b)		5.09	%		13.53	%		(1.70	)%		8.93	%		3.61	%
Total return, including expense support^(b)		5.09	%		13.53	%		(1.84	)%		8.21	%		2.77	%
Ratios to average net assets/supplemental data:
Net assets, end of period	$	82,137		$	68,153		$	58,829		$	62,031		$	58,881
Including interest expense:
Expenses, excluding expense support^(d)(g)		7.06	%^(h)		6.97	%^(h)		4.92	%^(h)		3.11	%^(h)		3.44	%
Expenses, including expense support^(d)(f)(g)		7.06	%^(h)		6.97	%^(h)		5.06	%^(h)		3.83	%^(h)		4.28	%
Excluding interest expense:
Expenses, excluding expense support^(d)(g)		4.38	%		4.40	%		3.40	%		2.46	%		2.90	%
Expenses, including expense support^(d)(f)(g)		4.38	%		4.40	%		3.54	%		3.18	%		3.73	%
Net investment income^(d)		9.57	%		10.25	%		6.53	%		5.72	%		5.86	%
Portfolio turnover rate		44.36	%		30.64	%		38.16	%		43.72	%		59.77	%

Semi Annual Report 2024

131

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

										For the
										Period from
	For the			For the			For the			January 26,
	Period Ended			Year Ended			Year Ended			2017 to
	December 31,			October 31,			October 31,			October 31,
	2019*			2019			2018			2017
Class A
Per share data:
Net asset value, beginning of period	$	25.44		$	25.80		$	25.25		$	25.00
Income from investment operations:
Net investment income^(a)		0.23			1.39			1.52			0.86
Net realized and unrealized gains (losses)		0.49			(0.36	)		0.42			0.44
Total income from investment operations		0.72			1.03			1.94			1.30
Less distributions declared to shareholders:
From net investment income		(0.23	)		(1.39	)		(1.39	)		(0.86	)
From net realized gains on investments		—			—			—			(0.12	)
From net unrealized gains on investments and foreign currency		—			—			—			(0.07	)
Total distributions		(0.23	)		(1.39	)		(1.39	)		(1.05	)
Net asset value, end of period	$	25.93		$	25.44		$	25.80		$	25.25
Total return, excluding expense support^(b)		2.86	%^(c)		4.37	%		(2.44	)%		(37.12	)%^(c)
Total return, including expense support^(d)		2.86	%^(c)		4.10	%		7.91	%		5.32	%^(c)
Ratios to average net assets/supplemental data:
Net assets, end of period	$	60,203		$	54,386		$	37,915		$	12,865
Including interest expense:
Expenses, excluding expense support^(e)(h)		4.01	%^(f)		4.03	%		5.98	%		58.85	%^(f)
Expenses, including expense support^(e)(g)(h)		4.01	%^(f)		4.30	%		0.34	%		0.00	%^(f)
Excluding interest expense:
Expenses, excluding expense support^(h)		3.33	%^(f)		3.38	%		5.97	%		58.85	%^(f)
Expenses, including expense support^(g)(h)		3.33	%^(f)		3.65	%		0.33	%		0.00	%^(f)
Net investment income^(e)		5.27	%^(f)		5.56	%		5.91	%		4.48	%^(f)
Portfolio turnover rate		5.42	%^(c)		63.58	%		28.36	%		164.09	%^(c)

For the two month period ended December 31, 2019. See Note 1 to the consolidated financial statements for the six months ended June 30, 2024.

(a)

Per share net investment income has been calculated using the average shares outstanding during the period.

(b)

Based on net asset value per share. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan, (the “DRIP”). Total return is not annualized for periods less than one year. Total return excludes or includes, as noted, expense support provided or (recouped) by CION Ares Management, LLC (the “Adviser”).

(c)

Not annualized.

(d)

Includes organizational and offering costs, where applicable.

(e)

Annualized, except for certain non-recurring costs.

(f)

Includes expense support provided or (recouped) by the Adviser.

132

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Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

(g)

For the periods presented below, the ratio of operating expenses to average net assets consisted of the following:

	For the Six		For the		For the		For the		For the
	Months Ended		Year Ended		Year Ended		Year Ended		Year Ended
	June 30, 2024		December 31,		December 31,		December 31,		December 31,
	(unaudited)		2023		2022		2021		2020
Base management fee	1.77	%	1.82	%	1.77	%	1.58	%	1.56	%
Income based incentive fee	1.69	%	1.77	%	0.79	%	—	%	—	%
Cost of borrowing	2.68	%	2.57	%	1.52	%	0.65	%	0.54	%
Net expense support	—	%	—	%	0.14	%	0.72	%	0.84	%
Other operating expenses	0.92	%	0.81	%	0.84	%	0.88	%	1.35	%
Total operating expenses	7.06	%	6.97	%	5.06	%	3.83	%	4.28	%

							For the
							Period from
	For the		For the		For the		January 26,
	Period Ended		Year Ended		Year Ended		2017 to
	December 31,		October 31,		October 31,		October 31,
	2019*		2019		2018		2017
Base management fee	1.56	%	1.47	%	1.49	%	1.49	%
Income based incentive fee	—	%	—	%	—	%	—	%
Cost of borrowing	0.68	%	0.65	%	—	%	—	%
Net expense support	—	%	0.27	%	(5.91	)%	(56.68	)%
Other operating expenses	1.77	%	1.91	%	4.76	%	55.19	%
Total operating expenses	4.01	%	4.30	%	0.34	%	—	%

(h)

Includes stated dividends and amortization of deferred issuance costs on the mandatory redeemable preferred shares. See Note 7 to the consolidated financial statements for the six months ended June 30, 2024.

Semi Annual Report 2024

133

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

	For the Six			For the			For the			For the			For the
	Months Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2024			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2023			2022			2021			2020
Class C
Per share data:
Net asset value, beginning of period	$	24.77		$	23.66		$	25.65		$	25.05		$	25.90
Income from investment operations:
Net investment income^(a)		1.11			2.32			1.48			1.43			1.35
Net realized and unrealized gains (losses)		0.05			0.60			(2.08	)		0.56			(0.80	)
Total income (loss) from investment operations		1.16			2.92			(0.60	)		1.99			0.55
Less distributions declared to shareholders:
From net investment income		(1.02	)		(1.81	)		(1.39	)		(1.39	)		(1.40	)
Total distributions		(1.02	)		(1.81	)		(1.39	)		(1.39	)		(1.40	)
Net asset value, end of period	$	24.91		$	24.77		$	23.66		$	25.65		$	25.05
Total return, excluding expense support^(b)		4.75	%		12.80	%		(2.31	)%		8.20	%		2.81	%
Total return, including expense support^(b)		4.75	%		12.80	%		(2.42	)%		8.16	%		2.57	%
Ratios to average net assets/supplemental data:
Net assets, end of period	$	76,630		$	79,242		$	73,573		$	77,361		$	68,039
Including interest expense:
Expenses, excluding expense support^(d)(g)		7.68	%^(h)		7.62	%^(h)		5.50	%^(h)		3.87	%^(h)		4.18	%
Expenses, including expense support^(d)(f)(g)		7.68	%^(h)		7.62	%^(h)		5.61	%^(h)		3.91	%^(h)		4.41	%
Excluding interest expense:
Expenses, excluding expense support^(d)(g)		5.01	%		5.05	%		3.98	%		3.22	%		3.64	%
Expenses, including expense support^(d)(f)(g)		5.01	%		5.05	%		4.09	%		3.26	%		3.88	%
Net investment income^(d)		8.95	%		9.59	%		5.99	%		5.65	%		5.66	%
Portfolio turnover rate		44.36	%		30.64	%		38.16	%		43.72	%		59.77	%

134

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CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

										For the Period from
										July 12, 2017
	For the			For the			For the			(commencement
	Period Ended			Year Ended			Year Ended			of operations) to
	December 31,			October 31,			October 31,			October 31,
	2019*			2019			2018			2017
Class C
Per share data:
Net asset value, beginning of period	$	25.44		$	25.80		$	25.25		$	24.95
Income from investment operations:
Net investment income^(a)		0.19			1.39			1.52			0.39
Net realized and unrealized gains (losses)		0.50			(0.36	)		0.42			0.33
Total income from investment operations		0.69			1.03			1.94			0.72
Less distributions declared to shareholders:
From net investment income		(0.23	)		(1.39	)		(1.39	)		(0.39	)
From net realized gains on investments		—			—			—			(0.02	)
From net unrealized gains on investments and foreign currency		—			—			—			(0.01	)
Total distributions		(0.23	)		(1.39	)		(1.39	)		(0.42	)
Net asset value, end of period	$	25.90		$	25.44		$	25.80		$	25.25
Total return, excluding expense support^(b)		2.74	%^(c)		3.70	%		(3.19	)%		(3.56	)%^(c)
Total return, including expense support^(d)		2.74	%^(c)		4.10	%		7.91	%		2.95	%^(c)
Ratios to average net assets/supplemental data:
Net assets, end of period	$	65,779		$	59,912		$	29,868		$	3,898
Including interest expense:
Expenses, excluding expense support^(e)		4.76	%^(f)		4.82	%		6.73	%		25.59	%^(f)
Expenses, including expense support^(e)(g)		4.76	%^(f)		4.42	%		0.34	%		0.00	%^(f)
Excluding interest expense:
Expenses, excluding expense support		4.07	%^(f)		4.15	%		6.72	%		22.59	%^(f)
Expenses, including expense support^(g)		4.07	%^(f)		3.75	%		0.33	%		0.00	%^(f)
Net investment income^(e)		4.52	%^(f)		5.48	%		5.91	%		5.17	%^(f)
Portfolio turnover rate		5.42	%^(c)		63.58	%		28.36	%		164.09	%^(c)

*	For the two month period ended December 31, 2019. See Note 1 to the consolidated financial statements for the six months ended June 30, 2024.

(a)	Per share net investment income has been calculated using the average shares outstanding during the period.

(b)	Based on net asset value per share. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund’s DRIP. Total return is not annualized for periods less than one year. Total return excludes or includes, as noted, expense support provided or (recouped) by the Adviser.

(c)	Not annualized.

(d)	Includes organizational and offering costs, where applicable.

(e)	Annualized, except for certain non-recurring costs.

(f)	Includes expense support provided or (recouped) by the Adviser.

Semi Annual Report 2024

135

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

(g) For the periods presented below, the ratio of operating expenses to average net assets consisted of the following:

	For the Six		For the		For the		For the		For the
	Months Ended		Year Ended		Year Ended		Year Ended		Year Ended
	June 30, 2024		December 31,		December 31,		December 31,		December 31,
	(unaudited)		2023		2022		2021		2020
Base management fee	1.77	%	1.82	%	1.77	%	1.58	%	1.56	%
Income based incentive fee	1.58	%	1.66	%	0.61	%	—	%	—	%
Cost of borrowing	2.67	%	2.57	%	1.52	%	0.65	%	0.52	%
Net expense support	—	%	—	%	0.11	%	0.04	%	0.24	%
Other operating expenses	1.66	%	1.57	%	1.60	%	1.64	%	2.09	%
Total operating expenses	7.68	%	7.62	%	5.61	%	3.91	%	4.41	%

							For the
							Period from
							July 12, 2017
	For the		For the		For the		(commencement
	Period Ended		Year Ended		Year Ended		of operations) to
	December 31,		October 31,		October 31,		October 31,
	2019*		2019		2018		2017
Base management fee	1.56	%	1.47	%	1.49	%	1.49	%
Income based incentive fee	—	%	—	%	—	%	—	%
Cost of borrowing	0.68	%	0.67	%	—	%	—	%
Net expense support	—	%	(0.40	)%	(6.20	)%	(33.93	)%
Other operating expenses	2.52	%	2.67	%	5.05	%	32.44	%
Total operating expenses	4.76	%	4.42	%	0.34	%	—	%

(h)	Includes stated dividends and amortization of deferred issuance costs on the mandatory redeemable preferred shares. See Note 7 to the consolidated financial statements for the six months ended June 30, 2024.

136

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CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

	For the Six			For the			For the			For the			For the
	Months Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2024			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2023			2022			2021			2020
Class I
Per share data:
Net asset value, beginning of period	$	25.23		$	24.12		$	26.01		$	25.22		$	25.93
Income from investment operations:
Net investment income^(a)		1.23			2.58			1.73			1.62			1.49
Net realized and unrealized gains (losses)		0.06			0.62			(2.14	)		0.56			(0.80	)
Total income (loss) from investment operations		1.29			3.20			(0.41	)		2.18			0.69
Less distributions declared to shareholders:
From net investment income		(1.16	)		(2.09	)		(1.48	)		(1.39	)		(1.40	)
Total distributions		(1.16	)		(2.09	)		(1.48	)		(1.39	)		(1.40	)
Net asset value, end of period	$	25.36		$	25.23		$	24.12		$	26.01		$	25.22
Total return, excluding expense support^(b)		5.21	%		13.79	%		(1.62	)%		8.90	%		3.55	%
Total return, including expense support^(b)		5.21	%		13.79	%		(1.62	)%		8.87	%		3.12	%
Ratios to average net assets/supplemental data:
Net assets, end of period	$	2,973,646		$	2,432,547		$	1,819,625		$	1,339,092		$	603,536
Including interest expense:
Expenses, excluding expense support^(d)(g)		6.85	%^(h)		6.75	%^(h)		4.87	%^(h)		3.25	%^(h)		3.50	%
Expenses, including expense support^(d)(f)(g)		6.85	%^(h)		6.75	%^(h)		4.87	%^(h)		3.28	%^(h)		3.93	%
Excluding interest expense:
Expenses, excluding expense support^(d)(g)		4.17	%		4.18	%		3.32	%		2.56	%		2.97	%
Expenses, including expense support^(d)(f)(g)		4.17	%		4.18	%		3.32	%		2.59	%		3.39	%
Net investment income^(d)		9.80	%		10.50	%		6.92	%		6.34	%		6.24	%
Portfolio turnover rate		44.36	%		30.64	%		38.16	%		43.72	%		59.77	%

Semi Annual Report 2024

137

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

										For the
										Period from
										July 12, 2017
	For the			For the			For the			(commencement
	Period Ended			Year Ended			Year Ended			of operations) to
	December 31,			October 31,			October 31,			October 31,
	2019*			2019			2018			2017
Class I
Per share data:
Net asset value, beginning of period	$	25.44		$	25.80		$	25.25		$	24.95
Income from investment operations:
Net investment income^(a)		0.23			1.39			1.52			0.40
Net realized and unrealized gains (losses)		0.49			(0.36	)		0.42			0.32
Total income from investment operations		0.72			1.03			1.94			0.72
Less distributions declared to shareholders:
From net investment income		(0.23	)		(1.39	)		(1.39	)		(0.40	)
From net realized gains on investments		—			—			—			(0.01	)
From net unrealized gains on investments and foreign currency		—			—			—			(0.01	)
Total distributions		(0.23	)		(1.39	)		(1.39	)		(0.42	)
Net asset value, end of period	$	25.93		$	25.44		$	25.80		$	25.25
Total return, excluding expense support^(b)		2.88	%^(c)		4.78	%		(2.19	)%		(2.49	)%^(c)
Total return, including expense support^(d)		2.86	%^(c)		4.10	%		7.91	%		2.95	%^(c)
Ratios to average net assets/supplemental data:
Net assets, end of period	$	354,144		$	298,481		$	111,705		$	6,048
Including interest expense:
Expenses, excluding expense support^(e)(h)		3.74	%^(f)		3.87	%		5.73	%		18.62	%^(f)
Expenses, including expense support^(e)(g)(h)		3.87	%^(f)		4.55	%		0.34	%		0.00	%^(f)
Excluding interest expense:
Expenses, excluding expense support^(h)		3.06	%^(f)		3.17	%		5.71	%		18.62	%^(f)
Expenses, including expense support^(g)(h)		3.19	%^(f)		3.85	%		0.32	%		0.00	%^(f)
Net investment income^(e)		5.44	%^(f)		5.38	%		5.91	%		5.19	%^(f)
Portfolio turnover rate		5.42	%^(c)		63.58	%		28.36	%		164.09	%^(c)

*	For the two month period ended December 31, 2019. See Note 1 to the consolidated financial statements for the six months ended June 30, 2024.
(a)	Per share net investment income has been calculated using the average shares outstanding during the period.
(b)	Based on net asset value per share. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund’s DRIP. Total return is not annualized for periods less than one year. Total return excludes or includes, as noted, expense support provided or (recouped) by the Adviser.
(c)	Not annualized.
(d)	Includes organizational and offering costs, where applicable.
(e)	Annualized, except for certain non-recurring costs.
(f)	Includes expense support provided or (recouped) by the Adviser.

138

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CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

(g) For the periods presented below, the ratio of operating expenses to average net assets consisted of the following:

	For the Six		For the		For the		For the		For the
	Months Ended		Year Ended		Year Ended		Year Ended		Year Ended
	June 30, 2024		December 31,		December 31,		December 31,		December 31,
	(unaudited)		2023		2022		2021		2020
Base management fee	1.77	%	1.82	%	1.78	%	1.60	%	1.59	%
Income based incentive fee	1.72	%	1.81	%	0.95	%	0.33	%	0.25	%
Cost of borrowing	2.68	%	2.56	%	1.55	%	0.69	%	0.53	%
Net expense support	—	%	—	%	—	%	0.03	%	0.43	%
Other operating expenses	0.68	%	0.56	%	0.59	%	0.63	%	1.14	%
Total operating expenses	6.85	%	6.75	%	4.87	%	3.28	%	3.93	%

							For the
							Period from
							July 12, 2017
	For the		For the		For the		(commencement
	Period Ended		Year Ended		Year Ended		of operations) to
	December 31,		October 31,		October 31,		October 31,
	2019*		2019		2018		2017
Base management fee	1.56	%	1.48	%	1.49	%	1.49	%
Income based incentive fee	—	%	—	%	—	%	—	%
Cost of borrowing	0.68	%	0.71	%	—	%	—	%
Net expense support	0.13	%	0.68	%	(4.79	)%	(29.81	)%
Other operating expenses	1.51	%	1.68	%	3.64	%	28.33	%
Total operating expenses	3.87	%	4.55	%	0.34	%	—	%

(h)	Includes stated dividends and amortization of deferred issuance costs on the mandatory redeemable preferred shares. See Note 7 to the consolidated financial statements for the six months ended June 30, 2024.

Semi Annual Report 2024

139

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

	For the Six			For the			For the			For the			For the
	Months Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2024			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2023			2022			2021			2020
Class L
Per share data:
Net asset value, beginning of period	$	25.04		$	23.93		$	25.85		$	25.14		$	25.92
Income from investment operations:
Net investment income^(a)		1.17			2.45			1.63			1.54			1.44
Net realized and unrealized gains (losses)		0.05			0.61			(2.11	)		0.56			(0.82	)
Total income (loss) from investment operations		1.22			3.06			(0.48	)		2.10			0.62
Less distributions declared to shareholders:
From net investment income		(1.09	)		(1.95	)		(1.44	)		(1.39	)		(1.40	)
Total distributions		(1.09	)		(1.95	)		(1.44	)		(1.39	)		(1.40	)
Net asset value, end of period	$	25.17		$	25.04		$	23.93		$	25.85		$	25.14
Total return, excluding expense support^(b)		4.96	%		13.28	%		(1.92	)%		8.69	%		3.27	%
Total return, including expense support^(b)		4.96	%		13.28	%		(1.92	)%		8.58	%		2.85	%
Ratios to average net assets/supplemental data:
Net assets, end of period	$	12,248		$	11,283		$	10,537		$	9,845		$	7,364
Including interest expense:
Expenses, excluding expense support^(d)(g)		7.27	%^(h)		7.19	%^(h)		5.12	%^(h)		3.40	%^(h)		3.82	%
Expenses, including expense support^(d)(f)(g)		7.27	%^(h)		7.19	%^(h)		5.12	%^(h)		3.51	%^(h)		4.24	%
Excluding interest expense:
Expenses, excluding expense support^(d)(g)		4.59	%		4.62	%		3.59	%		2.75	%		3.27	%
Expenses, including expense support^(d)(f)(g)		4.59	%		4.62	%		3.59	%		2.86	%		3.69	%
Net investment income^(d)		9.39	%		10.03	%		6.56	%		6.05	%		6.04	%
Portfolio turnover rate		44.36	%		30.64	%		38.16	%		43.72	%		59.77	%

140

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CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

							For the Period from
	For the			For the			November 2, 2017
	Period Ended			Year Ended			(commencement of
	December 31,			October 31,			operations) to
	2019*			2019			October 31, 2018
Class L
Per share data:
Net asset value, beginning of period	$	25.44		$	25.80		$	25.23
Income from investment operations:
Net investment income^(a)		0.19			1.39			1.52
Net realized and unrealized gains (losses)		0.52			(0.36	)		0.43
Total income from investment operations		0.71			1.03			1.95
Less distributions declared to shareholders:
From net investment income		(0.23	)		(1.39	)		(1.38	)
Total distributions		(0.23	)		(1.39	)		(1.38	)
Net asset value, end of period	$	25.92		$	25.44		$	25.80
Total return, excluding expense support^(b)		2.82	%^(c)		4.32	%		(2.69	)%^(c)
Total return, including expense support^(d)		2.82	%^(c)		4.10	%		7.96	%^(c)
Ratios to average net assets/supplemental data:
Net assets, end of period	$	6,325		$	5,536		$	1,933
Including interest expense:
Expenses, excluding expense support^(e)(h)		4.24	%^(f)		4.38	%		6.23	%^(f)
Expenses, including expense support^(e)(g)(h)		4.24	%^(f)		4.60	%		0.34	%^(f)
Excluding interest expense:
Expenses, excluding expense support^(h)		3.56	%^(f)		3.67	%		6.21	%^(f)
Expenses, including expense support^(g)(h)		3.56	%^(f)		3.89	%		0.32	%^(f)
Net investment income^(e)		4.47	%^(f)		5.35	%		5.19	%^(f)
Portfolio turnover rate		5.42	%^(c)		63.58	%		28.36	%^(c)

*	For the two month period ended December 31, 2019. See Note 1 to the consolidated financial statements for the six months ended June 30, 2024.

(a)	Per share net investment income has been calculated using the average shares outstanding during the period.

(b)	Based on net asset value per share. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund’s DRIP. Total return is not annualized for periods less than one year. Total return excludes or includes, as noted, expense support provided or (recouped) by the Adviser.

(c)	Not annualized.

(d)	Includes organizational and offering costs, where applicable.

(e)	Annualized, except for certain non-recurring costs.

(f)	Includes expense support provided or (recouped) by the Adviser.

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CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

(g) For the periods presented below, the ratio of operating expenses to average net assets consisted of the following:

	For the Six		For the		For the		For the		For the
	Months Ended		Year Ended		Year Ended		Year Ended		Year Ended
	June 30, 2024		December 31,		December 31,		December 31,		December 31,
	(unaudited)		2023		2022		2021		2020
Base management fee	1.77	%	1.82	%	1.78	%	1.58	%	1.58	%
Income based incentive fee	1.65	%	1.73	%	0.75	%	0.05	%	0.02	%
Cost of borrowing	2.68	%	2.57	%	1.53	%	0.65	%	0.55	%
Net expense support	—	%	—	%	—	%	0.11	%	0.42	%
Other operating expenses	1.17	%	1.07	%	1.06	%	1.12	%	1.68	%
Total operating expenses	7.27	%	7.19	%	5.12	%	3.51	%	4.24	%

					For the Period from
	For the		For the		November 2, 2017
	Period Ended		Year Ended		(commencement of
	December 31,		October 31,		operations) to
	2019*		2019		October 31, 2018
Base management fee	1.56	%	1.49	%	1.48	%
Income based incentive fee	—	%	—	%	—	%
Cost of borrowing	0.68	%	0.72	%	—	%
Net expense support	—	%	0.21	%	(4.71	)%
Other operating expenses	2.01	%	2.18	%	3.57	%
Total operating expenses	4.24	%	4.60	%	0.34	%

(h)	Includes stated dividends and amortization of deferred issuance costs on the mandatory redeemable preferred shares. See Note 7 to the consolidated financial statements for the six months ended June 30, 2024.

142

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Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

	For the Six			For the			For the			For the			For the
	Months Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2024			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2023			2022			2021			2020
Class U
Per share data:
Net asset value, beginning of period	$	25.08		$	23.95		$	25.87		$	25.18		$	25.92
Income from investment operations:
Net investment income^(a)		1.14			2.41			1.59			1.52			1.42
Net realized and unrealized gains (losses)		0.06			0.61			(2.11	)		0.56			(0.76	)
Total income (loss) from investment operations		1.20			3.02			(0.52	)		2.08			0.66
Less distributions declared to shareholders:
From net investment income		(1.06	)		(1.89	)		(1.40	)		(1.39	)		(1.40	)
Total distributions		(1.06	)		(1.89	)		(1.40	)		(1.39	)		(1.40	)
Net asset value, end of period	$	25.22		$	25.08		$	23.95		$	25.87		$	25.18
Total return, excluding expense support^(b)		4.87	%		13.07	%		(2.07	)%		8.48	%		3.01	%
Total return, including expense support^(b)		4.87	%		13.07	%		(2.07	)%		8.48	%		2.99	%
Ratios to average net assets/supplemental data:
Net assets, end of period	$	548,889		$	477,044		$	388,866		$	345,691		$	199,175
Including interest expense:
Expenses, excluding expense support^(d)(g)		7.49	%^(h)		7.39	%^(h)		5.33	%^(h)		3.64	%^(h)		4.00	%
Expenses, including expense support^(d)(f)(g)		7.49	%^(h)		7.39	%^(h)		5.33	%^(h)		3.64	%^(h)		4.02	%
Excluding interest expense:
Expenses, excluding expense support^(d)(g)		4.81	%		4.82	%		3.80	%		2.97	%		3.51	%
Expenses, including expense support^(d)(f)(g)		4.81	%		4.82	%		3.80	%		2.97	%		3.54	%
Net investment income^(d)		9.15	%		9.85	%		6.39	%		5.96	%		5.98	%
Portfolio turnover rate		44.36	%		30.64	%		38.16	%		43.72	%		59.77	%

Semi Annual Report 2024

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CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

				For the Period from
	For the			July 26, 2019
	Period Ended			(commencement of
	December 31,			operations) to
	2019*			October 31, 2019
Class U
Per share data:
Net asset value, beginning of period	$	25.44		$	25.86
Income from investment operations:
Net investment income^(a)		0.20			0.40
Net realized and unrealized gains (losses)		0.51			(0.45	)
Total income (loss) from investment operations		0.71			(0.05	)
Less distributions declared to shareholders:
From net investment income		(0.23	)		(0.37	)
Total distributions		(0.23	)		(0.37	)
Net asset value, end of period	$	25.92		$	25.44
Total return, excluding expense support^(b)		2.74	%		1.60	%
Total return, including expense support^(b)		2.82	%		(0.14	)%
Ratios to average net assets/supplemental data:
Net assets, end of period	$	42,902		$	10,434
Including interest expense:
Expenses, excluding expense support^(d)(g)		4.31	%^(e)		4.85	%^(e)
Expenses, including expense support^(d)(f)(g)		3.83	%^(e)		6.59	%^(e)
Excluding interest expense:
Expenses, excluding expense support^(d)(g)		3.66	%^(e)		3.88	%^(e)
Expenses, including expense support^(d)(f)(g)		4.48	%^(e)		5.62	%^(e)
Net investment income^(d)		5.39	%^(e)		12.08	%^(e)
Portfolio turnover rate		5.42	%^(c)		63.58	%^(c)

*	For the two month period ended December 31, 2019. See Note 1 to the consolidated financial statements for the six months ended June 30, 2024.

(a)	Per share net investment income has been calculated using the average shares outstanding during the period.

(b)	Based on net asset value per share. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund’s DRIP. Total return is not annualized for periods less than one year. Total return excludes or includes, as noted, expense support provided or (recouped) by the Adviser.

(c)	Not annualized.

(d)	Includes organizational and offering costs, where applicable.

(e)	Annualized, except for certain non-recurring costs.

(f)	Includes expense support provided or (recouped) by the Adviser.

144

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CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

(g) For the periods presented below, the ratio of operating expenses to average net assets consisted of the following:

	For the Six		For the		For the		For the		For the
	Months Ended		Year Ended		Year Ended		Year Ended		Year Ended
	June 30, 2024		December 31,		December 31,		December 31,		December 31,
	(unaudited)		2023		2022		2021		2020
Base management fee	1.77	%	1.82	%	1.78	%	1.59	%	1.60	%
Income based incentive fee	1.61	%	1.70	%	0.67	%	—	%	—	%
Cost of borrowing	2.68	%	2.57	%	1.53	%	0.67	%	0.48	%
Net expense support	—	%	—	%	—	%	—	%	0.02	%
Other operating expenses	1.43	%	1.30	%	1.35	%	1.38	%	1.92	%
Total operating expenses	7.49	%	7.39	%	5.33	%	3.64	%	4.02	%

			For the Period from
	For the		July 26, 2019
	Period Ended		(commencement of
	December 31,		operations) to
	2019*		October 31, 2019
Base management fee	1.56	%	1.61	%
Income based incentive fee	—	%	—	%
Cost of borrowing	0.65	%	0.89	%
Net expense support	(0.47	)%	1.74	%
Other operating expenses	2.10	%	2.35	%
Total operating expenses	3.83	%	6.59	%

(h)	Includes stated dividends and amortization of deferred issuance costs on the mandatory redeemable preferred shares. See Note 7 to the consolidated financial statements for the six months ended June 30, 2024.

Semi Annual Report 2024

145

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

													For the
													Period from
													April 13, 2020
	For the Six			For the			For the			For the			(commencement
	Months Ended			Year Ended			Year Ended			Year Ended			of operations) to
	June 30, 2024			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2023			2022			2021			2020
Class U-2
Per share data:
Net asset value, beginning of period	$	25.05		$	23.92		$	25.85		$	25.17		$	21.79
Income from investment operations:
Net investment income^(a)		1.14			2.40			1.60			1.52			0.76
Net realized and unrealized gains (losses)		0.06			0.62			(2.13	)		0.55			3.62
Total income (loss) from investment operations		1.20			3.02			(0.53	)		2.07			4.38
Less distributions declared to shareholders:
From net investment income		(1.06	)		(1.89	)		(1.40	)		(1.39	)		(1.00	)
Total distributions		(1.06	)		(1.89	)		(1.40	)		(1.39	)		(1.00	)
Net asset value, end of period	$	25.19		$	25.05		$	23.92		$	25.85		$	25.17
Total return, excluding expense support^(b)		4.87	%		13.08	%		(2.11	)%		8.44	%		19.71	%
Total return, including expense support^(b)		4.87	%		13.08	%		(2.11	)%		8.44	%		19.71	%
Ratios to average net assets/supplemental data:
Net assets, end of period	$	121,471		$	106,738		$	84,792		$	56,851		$	12,018
Including interest expense:
Expenses, excluding expense support^(d)(g)		7.49	%^(h)		7.40	%^(h)		5.39	%^(h)		3.74	%^(h)		4.10	%^(e)
Expenses, including expense support^(d)(f)(g)		7.49	%^(h)		7.40	%^(h)		5.39	%^(h)		3.74	%^(h)		4.10	%^(e)
Excluding interest expense:
Expenses, excluding expense support^(d)(g)		4.81	%		4.84	%		3.83	%		3.00	%		3.69	%^(e)
Expenses, including expense support^(d)(f)(g)		4.81	%		4.84	%		3.83	%		3.00	%		3.69	%^(e)
Net investment income^(d)		9.17	%		9.84	%		6.48	%		5.98	%		4.48	%^(e)
Portfolio turnover rate		44.36	%		30.64	%		38.16	%		43.72	%		59.77	%^(c)

(a)	Per share net investment income has been calculated using the average shares outstanding during the period.

(b)	Based on net asset value per share. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund’s DRIP. Total return is not annualized for periods less than one year. Total return excludes or includes, as noted, expense support provided or (recouped) by the Adviser.

(c)	Not annualized.

(d)	Includes organizational and offering costs, where applicable.

(e)	Annualized.

(f)	Includes expense support provided or (recouped) by the Adviser.

146

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CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

(g) For the periods presented below, the ratio of operating expenses to average net assets consisted of the following:

									For the
									Period from
									April 13, 2020
	For the Six		For the		For the		For the		(commencement
	Months Ended		Year Ended		Year Ended		Year Ended		of operations) to
	June 30, 2024		December 31,		December 31,		December 31,		December 31,
	(unaudited)		2023		2022		2021		2020
Base management fee	1.77	%	1.82	%	1.78	%	1.62	%	1.54	%
Income based incentive fee	1.62	%	1.70	%	0.71	%	—	%	—	%
Cost of borrowing	2.68	%	2.56	%	1.56	%	0.74	%	0.39	%
Other operating expenses	1.42	%	1.32	%	1.34	%	1.38	%	2.17	%
Total operating expenses	7.49	%	7.40	%	5.39	%	3.74	%	4.10	%

(h)	Includes stated dividends and amortization of deferred issuance costs on the mandatory redeemable preferred shares. See Note 7 to the consolidated financial statements for the six months ended June 30, 2024.

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147

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

	For the Six			For the			For the			For the			For the
	Months Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2024			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2023			2022			2021			2020
Class W
Per share data:
Net asset value, beginning of period	$	25.23		$	24.11		$	26.03		$	25.27		$	25.92
Income from investment operations:
Net investment income^(a)		1.18			2.47			1.62			1.58			1.50
Net realized and unrealized gains (losses)		0.05			0.61			(2.10	)		0.57			(0.75	)
Total income (loss) from investment operations		1.23			3.08			(0.48	)		2.15			0.75
Less distributions declared to shareholders:
From net investment income		(1.10	)		(1.96	)		(1.44	)		(1.39	)		(1.40	)
Total distributions		(1.10	)		(1.96	)		(1.44	)		(1.39	)		(1.40	)
Net asset value, end of period	$	25.36		$	25.23		$	24.11		$	26.03		$	25.27
Total return, excluding expense support^(b)		4.96	%		13.28	%		(1.91	)%		8.73	%		3.35	%
Total return, including expense support^(b)		4.96	%		13.28	%		(1.91	)%		8.73	%		3.35	%
Ratios to average net assets/supplemental data:
Net assets, end of period	$	34,891		$	34,213		$	32,160		$	38,688		$	39,831
Including interest expense:
Expenses, excluding expense support^(d)(g)		7.27	%^(h)		7.19	%^(h)		5.03	%^(h)		3.39	%^(h)		3.65	%
Expenses, including expense support^(d)(f)(g)		7.27	%^(h)		7.19	%^(h)		5.03	%^(h)		3.39	%^(h)		3.65	%
Excluding interest expense:
Expenses, excluding expense support^(d)(g)		4.59	%		4.62	%		3.53	%		2.75	%		3.14	%
Expenses, including expense support^(d)(f)(g)		4.59	%		4.62	%		3.53	%		2.75	%		3.14	%
Net investment income^(d)		9.38	%		10.03	%		6.45	%		6.17	%		6.23	%
Portfolio turnover rate		44.36	%		30.64	%		38.16	%		43.72	%		59.77	%

148    Semi Annual Report 2024

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

				For the Period from
	For the			December 21, 2018
	Period Ended			(commencement of
	December 31,			operations) to
	2019*			October 31, 2019
Class W
Per share data:
Net asset value, beginning of period	$	25.44		$	25.03
Income from investment operations:
Net investment income^(a)		0.25			1.23
Net realized and unrealized gains (losses)		0.46			0.38
Total income (loss) from investment operations		0.71			1.61
Less distributions declared to shareholders:
From net investment income		(0.23	)		(1.20	)
Total distributions		(0.23	)		(1.20	)
Net asset value, end of period	$	25.92		$	25.44
Total return, excluding expense support^(b)		2.82	%		7.00	%
Total return, including expense support^(b)		2.82	%		6.25	%
Ratios to average net assets/supplemental data:
Net assets, end of period	$	39,449		$	38,423
Including interest expense:
Expenses, excluding expense support^(d)(g)		4.28	%^(e)		4.73	%^(e)
Expenses, including expense support^(d)(f)(g)		4.28	%^(e)		5.47	%^(e)
Excluding interest expense:
Expenses, excluding expense support^(d)(g)		3.59	%^(e)		3.65	%^(e)
Expenses, including expense support^(d)(f)(g)		3.59	%^(e)		4.39	%^(e)
Net investment income^(d)		4.97	%^(e)		5.14	%^(e)
Portfolio turnover rate		5.42	%^(c)		63.58	%^(c)

*	For the two month period ended December 31, 2019. See Note 1 to the consolidated financial statements for the six months ended June 30, 2024.
(a)	Per share net investment income has been calculated using the average shares outstanding during the period.
(b)	Based on net asset value per share. Distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund’s DRIP. Total return is not annualized for periods less than one year. Total return excludes or includes, as noted, expense support provided or (recouped) by the Adviser.
(c)	Not annualized.
(d)	Includes organizational and offering costs, where applicable.
(e)	Annualized, except for certain non-recurring costs.
(f)	Includes expense support provided or (recouped) by the Adviser.

Semi Annual Report 2024    149

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

(g) For the periods presented below, the ratio of operating expenses to average net assets consisted of the following:

	For the Six			For the			For the			For the			For the
	Months Ended			Year Ended			Year Ended			Year Ended			Year Ended
	June 30, 2024			December 31,			December 31,			December 31,			December 31,
	(unaudited)			2023			2022			2021			2020
Base management fee		1.77	%		1.82	%		1.77	%		1.58	%		1.54	%
Income based incentive fee		1.66	%		1.74	%		0.70	%		0.06	%		0.03	%
Cost of borrowing		2.68	%		2.57	%		1.50	%		0.64	%		0.50	%
Net expense support		—	%		—	%		—	%		—	%		—	%
Other operating expenses		1.16	%		1.06	%		1.06	%		1.11	%		1.58	%
Total operating expenses		7.27	%		7.19	%		5.03	%		3.39	%		3.65	%

				For the Period from
	For the			December 21, 2018
	Period Ended			(commencement of
	December 31,			operations) to
		2019*		October 31, 2019
Base management fee		1.56	%		1.57	%
Income based incentive fee		—	%		—	%
Cost of borrowing		0.68	%		0.91	%
Net expense support		—	%		0.74	%
Other operating expenses		2.03	%		2.24	%
Total operating expenses		4.28	%		5.47	%

(h)	Includes stated dividends and amortization of deferred issuance costs on the mandatory redeemable preferred shares. See Note 7 to the consolidated financial statements for the six months ended June 30, 2024.

150    Semi Annual Report 2024

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

Information about the Fund’s senior securities as of June 30, 2024, December 31, 2023, December 31, 2022, December 31, 2021, December 31, 2020, December 31, 2019 and October 31, 2019 is shown in the following table. There were no senior securities outstanding as of October 31, 2018 and October 31, 2017.

	Total Amount
	Outstanding				Involuntary
	Exclusive of		Asset		Liquidating		Average
	Treasury		Coverage		Preference		Market Value
	Securities^(a)		Per Unit^(b)		Per Unit^(c)		Per Unit^(d)
Class and Period Ended
Revolving Credit Facility (Wells Fargo Bank, N.A.)
June 30, 2024	$	595,314	$	6,105		—	N/A
December 31, 2023		426,117		6,200		—	N/A
December 31, 2022		348,844		5,299		—	N/A
December 31, 2021		225,664		6,461		—	N/A
December 31, 2020		77,025		6,233		—	N/A
December 31, 2019		19,054		5,383		—	N/A
October 31, 2019		19,397		3,847		—	N/A
Revolving Credit Facility (State Street Bank and Trust Company)
June 30, 2024	$	303,447	$	6,105		—	N/A
December 31, 2023		246,939		6,200		—	N/A
December 31, 2022		317,201		5,299		—	N/A
December 31, 2021		176,803		6,461		—	N/A
December 31, 2020		111,283		6,233		—	N/A
December 31, 2019		110,387		5,383		—	N/A
October 31, 2019		142,357		3,847		—	N/A
Mandatory Redeemable Preferred Shares*
June 30, 2024	$	770,000	$	82.46	$	25.00	N/A
December 31, 2023		570,000		86.35		25.00	N/A
December 31, 2022		420,000		81.52		25.00	N/A
December 31, 2021		300,000		93.11		25.00	N/A
Secured Borrowings
June 30, 2024	$	6,166	$	6,105		—	N/A
December 31, 2023		6,548		6,200		—	N/A
December 31, 2022		5,776		5,299		—	N/A
December 31, 2021		5,776		6,461		—	N/A
December 31, 2020		650		6,233		—	N/A
December 31, 2019		314		5,383		—	N/A
October 31, 2019		349		3,847		—	N/A

*	There were no mandatory redeemable preferred shares outstanding as of December 31, 2020, December 31, 2019 and October 31, 2019.

(a)	Total amount of each class of senior securities outstanding at principal value at the end of the period presented.

Semi Annual Report 2024    151

CION Ares Diversified Credit Fund

Financial Highlights (continued)

(in thousands, except per share data, percentages and as otherwise noted)

(b)	The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by total senior securities representing indebtedness as calculated separately for each of the mandatory redeemable preferred shares and the credit facilities in accordance with Section 18^(h) of the Investment Company Act of 1940, as amended. With respect to the mandatory redeemable preferred shares, the asset coverage per unit figure is expressed in terms of dollar amounts per share of outstanding mandatory redeemable preferred shares (based on a per share liquidation preference of $25). With respect to the credit facilities, the asset coverage ratio is multiplied by $1,000 to determine the “Asset Coverage Per Unit”.

(c)	The amount to which such class of senior security would be entitled upon our involuntary liquidation in preference to any security junior to it. The “—” in this column indicates that the U.S. Securities and Exchange Commission expressly does not require this information to be disclosed for certain types of senior securities.

(d)	Not applicable to senior securities outstanding as of period end.

152    Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

(1) Organization

CION Ares Diversified Credit Fund (the “Fund”) is a closed-end, diversified management investment company that is registered under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”). The Fund operates as an interval fund and continuously offers its shares. The Fund was organized as a Delaware statutory trust on June 21, 2016.

The Fund’s investment objective is to provide superior risk-adjusted returns across various market cycles by investing in a diversified portfolio of liquid and illiquid asset classes. The Fund seeks to capitalize on market inefficiencies and relative value opportunities throughout the entire global credit spectrum.

The Fund is externally managed by CION Ares Management, LLC (the “Adviser”) pursuant to an investment advisory and management agreement. The Adviser was registered as an investment adviser with the U.S. Securities and Exchange Commission (the “SEC”) under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), on January 4, 2017. The Adviser is a joint venture between affiliates of Ares Management Corporation (“Ares Management”), a publicly traded, leading global alternative investment manager, and CION Investment Group, LLC and is controlled by Ares Management. The Adviser oversees the management of the Fund’s activities and is responsible for making investment decisions for the Fund’s portfolio. Ares Operations LLC, a subsidiary of Ares Management, provides certain administrative and other services necessary for the Fund to operate.

Fiscal Year End Change

On September 25, 2019, the board of trustees (the “Board”) approved a change to the fiscal year end of the Fund from October 31 to December 31. Accordingly, the Fund’s consolidated financial statements and related notes include information as of and for the year ended December 31, 2020, the two month period ended December 31, 2019 and the year ended October 31, 2019.

(2) Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”), and include the accounts of the Fund and its consolidated subsidiaries. The Fund is an investment company following accounting and reporting guidance in Accounting Standards Codification (“ASC”) Topic 946, Financial Services — Investment Companies. The consolidated financial statements reflect all adjustments and reclassifications, that, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition as of and for the periods presented. All significant intercompany balances and transactions have been eliminated.

Cash and Cash Equivalents

Cash and cash equivalents include funds from time to time deposited with financial institutions and short-term, liquid investments in a money market account. Cash and cash equivalents are carried at cost, which approximates fair value.

Concentration of Credit Risk

The Fund places its cash and cash equivalents with financial institutions and, at times, cash held in depository or money market accounts may exceed the Federal Deposit Insurance Corporation insured limit.

Investment Transactions

Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include investments charged off during the period, net of recoveries. Unrealized gains or losses primarily reflect the change in investment values, including the reversal of previously recorded unrealized gains or losses when gains or losses are realized.

Pursuant to Rule 2a-5 under the Investment Company Act, the Board has designated the Adviser as the Fund’s “valuation designee” (the “Valuation Designee”) to perform fair value determinations for investments held by the Fund without readily available market quotations subject to the oversight of the Board. All investments are recorded at their fair value.

Investments for which market quotations are readily available are typically valued at such market quotations. In order to validate market quotations, the Valuation Designee looks at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Valuation Designee, subject to the oversight of the Board, in accordance with the Valuation Designee’s valuation policy. The Valuation Designee may utilize independent third-party pricing and valuation services to assist in the valuation of each portfolio investment without a readily available market quotation in accordance with the valuation policy and a consistently applied valuation process.

Semi Annual Report 2024    153

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Investments in the Fund’s portfolio that do not have a readily available market are valued at fair value as determined in good faith by the Valuation Designee as described herein. As part of the valuation process for investments that do not have readily available market prices, the Valuation Designee may take into account the following types of factors, if relevant, in determining the fair value of the Fund’s investments: the enterprise value of a portfolio company (the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time), the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, changes in the interest rate environment and the credit markets, which may affect the price at which similar investments would trade in their principal markets and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent sale occurs, the Valuation Designee considers the pricing indicated by the external event to corroborate its valuation.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund’s investments may fluctuate from period to period. Additionally, the fair value of the Fund’s investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Fund may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Fund was required to liquidate a portfolio investment in a forced or liquidation sale, the Fund could realize significantly less than the value at which the Fund has recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned. See Note 4 for further information on the Fund’s valuation process.

Interest Income Recognition

Interest income is recorded on an accrual basis and includes the accretion of discounts, amortization of premiums and payment-in-kind (“PIK”) interest. Discounts from and premiums to par value on investments purchased are accreted/amortized into interest income over the life of the respective security using the effective yield method. To the extent loans contain PIK provisions, PIK interest, computed at the contractual rate specified in each applicable agreement, is accrued and recorded as interest income and added to the principal balance of the loan. PIK interest income added to the principal balance is generally collected upon repayment of the outstanding principal. To maintain the Fund’s tax treatment as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”), this non-cash source of income must be paid out to shareholders in the form of dividends for the year the income was earned, even though the Fund has not yet collected the cash. The amortized cost of investments represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest.

Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Fund’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest are paid or there is no longer any reasonable doubt that such principal or interest will be collected in full and, in the Fund’s judgment, are likely to remain current. The Fund may make exceptions to this policy if the loan has sufficient collateral value (i.e., typically measured as enterprise value of the portfolio company) or is in the process of collection.

Collateralized loan obligation (“CLO”) equity investments recognize investment income by utilizing an effective interest methodology based upon an effective yield to maturity utilizing projected cash flows, as required by ASC 325-40,

Beneficial Interest in Securitized Financial Assets.

Dividend Income Recognition

Dividend income on preferred equity is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. To the extent preferred equity contains PIK provisions, PIK dividends, computed at the contractual rate specified in each applicable agreement, are accrued and recorded as dividend income and added to the principal balance of the preferred equity. PIK dividends added to the principal balance are generally collected upon redemption of the equity.

154    Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Foreign Currency Transactions and Foreign Currency Forward Contracts

The Fund’s books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis: (i) fair value of investment securities, other assets and liabilities at the exchange rates prevailing at the end of the period; and (ii) purchases and sales of investment securities, income and expense at the exchange rates prevailing on the respective dates of such transactions, income or expenses.

The Fund does not isolate that portion of the results of operations resulting from the changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included in “net realized and unrealized gains or losses on investments” in the consolidated statement of operations.

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates of securities transactions, and the difference between the amounts of income and expense items recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency gains and losses arise from the changes in fair values of assets and liabilities, other than investments in securities at period end, resulting from changes in exchange rates.

Investments in foreign companies and securities of foreign governments may involve special risks and considerations not typically associated with investing in U.S. companies and securities of the U.S. government. These risks include, among other things, revaluation of currencies, less reliable information about issuers, different transaction clearance and settlement practices, and potential future adverse political and economic developments. Moreover, investments in foreign companies and securities of foreign governments and their markets may be less liquid and their prices more volatile than those of comparable U.S. companies and the U.S. government.

The Fund may enter into foreign currency forward contracts for operational purposes and to protect against adverse exchange rate fluctuations. A foreign currency forward contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date. The Fund may also enter into these contracts for purposes of increasing exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one currency to another. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates from an independent pricing service. The Fund is subject to the credit risk that the other party will not complete the obligations of the contract. The fair values of the foreign currency forward contracts are obtained from an independent pricing source.

Derivative Instruments

The Fund values its derivatives at fair value with the unrealized gains or losses recorded in “net realized and unrealized gains or losses on derivative contracts” in the Fund’s consolidated statement of operations.

Mandatory Redeemable Preferred Shares

The Fund carries its mandatory redeemable preferred shares at amortized cost and such shares are included as a liability on the consolidated statement of assets and liabilities. See Note 7 for further information on the Fund’s mandatory redeemable preferred shares.

Debt and Mandatory Redeemable Preferred Shares Issuance Costs

Debt and mandatory redeemable preferred shares issuance costs are amortized over the life of the relevant senior secured revolving credit facilities and mandatory redeemable preferred shares.

Secured Borrowings

The Fund follows the guidance in ASC Topic 860, Transfers and Servicing (“ASC 860”), when accounting for participations and other partial loan sales. Certain loan sales do not qualify for sale accounting under ASC 860 because these sales do not meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest or which are not eligible for sale accounting remain as an investment on the consolidated statement of assets and liabilities as required under GAAP and the proceeds are recorded as a secured borrowing. Secured borrowings are carried at fair value and included in “accrued expenses and other payables” in the accompanying consolidated statement of assets and liabilities.

Income Taxes

The Fund has elected to be treated as a RIC under the Code, and operates in a manner so as to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, the Fund must, among other requirements, meet certain source-of-income and asset diversification requirements and timely distribute to its shareholders all or substantially all of its investment company taxable income, as defined by the Code, for each year. The Fund has made and intends to continue to make the requisite distributions to its shareholders, which will generally relieve the Fund from U.S. federal corporate-level income taxes.

Semi Annual Report 2024    155

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Depending on the level of taxable income earned in a tax year, the Fund may choose to carry forward taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that the Fund determines that its estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, the Fund accrues excise tax, if any, on estimated excess taxable income as such taxable income is earned.

For tax purposes, the distributions to holders of mandatory redeemable preferred shares as described in Note 7 are treated as dividends.

Commitments and Contingencies

In the normal course of business, the Fund’s investment activities involve executions, settlement and financing of various transactions resulting in receivables from, and payables to, brokers, dealers and the Fund’s custodian. These activities may expose the Fund to risk in the event that such parties are unable to fulfill contractual obligations. Management does not anticipate any material losses from counterparties with whom it conducts business. Consistent with standard business practice, the Fund enters into contracts that contain a variety of indemnifications, and is engaged from time to time in various legal actions. The maximum exposure of the Fund under these arrangements and activities is unknown. However, the Fund expects the risk of material loss to be remote.

Commitments to extend credit include loan proceeds the Fund is obligated to advance, such as delayed draws or revolving credit arrangements. Commitments generally have fixed expiration dates or other termination clauses. Unrealized gains or losses associated with unfunded commitments are recorded in the consolidated financial statements and reflected as an adjustment to the fair value of the related security in the consolidated schedule of investments. The par amount of the unfunded commitments is not recognized by the Fund until it becomes funded.

Distributions to Shareholders

The Fund records distributions from net investment income daily. These distributions may be reinvested or paid monthly to shareholders. The Fund intends to pay common shareholders at least annually all or substantially all of its taxable income. The Fund intends to pay any capital gains distributions at least annually.

The Fund may make distributions, without limitation, from offering proceeds or borrowings, which may constitute a return of capital, as well as net investment income from operations, capital and non-capital gains from the sale of assets, and dividends or distributions from equity investments. Furthermore, a portion of the Fund’s distributions may be derived from expense support payments made by the Adviser, which are subject to repayment by the Fund within three years pursuant to the Expense Support and Conditional Reimbursement Agreement (the “Expense Support Agreement”). The purpose of such expense support payments is to ensure that the Fund bears an appropriate level of expenses. As such, the Fund’s distributions may not be entirely based on investment performance and can only be sustained if positive investment performance is achieved in future periods and/or the Adviser continues to make such expense support payments. Any future repayments of expenses by the Fund will reduce cash otherwise potentially available for distributions. There can be no assurance that sufficient performance will be achieved in order to sustain the current level of the Fund’s distributions. After the expiration of the current term of the Expense Support Agreement on July 31, 2025, the Adviser has no obligation to make expense support payments in future periods. If the Adviser did not make any expense support payments during such period, all or a portion of the Fund’s distributions would have been a return of capital which would reduce the available capital for investment. The sources of the Fund’s distributions may vary periodically. Please refer to the Financial Highlights table for the sources of distributions.

Shareholders’ Allocations

The Fund currently offers Class A, Class C, Class I, Class L, Class U, Class U-2 and Class W common shares (See Note 5). Realized and unrealized gains and losses and net investment income, excluding class specific expenses, if any, are allocated daily to each class of common shares based upon the relative proportion of net assets of each class. Differences in per share distributions by class are generally due to differences in class specific expenses.

Use of Estimates in the Preparation of the Consolidated Financial Statements

The preparation of the consolidated financial statements in conformity with GAAP requires the Adviser to make estimates and assumptions that affect the reported amounts of actual and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income or loss and expenses during the reporting period. Actual results could differ from those estimates and such differences may be actual and contingent. Significant estimates include the valuation of investments.

156    Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Recent Accounting Pronouncements

The Fund considers the applicability and impact of all accounting standard updates (“ASUs”) issued by the Financial Accounting Standards Board (the “FASB”). ASUs not listed were assessed and either determined to be not applicable or expected to have minimal impact on the Fund’s consolidated financial statements.

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”),” which enhances disclosure requirements about significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”). ASU 2023-07 among other things, (i) requires a single segment public entity to follow segment guidance, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability to elect more than one performance measure. ASU 2023-07 is effective for the fiscal year beginning after December 15, 2023, and interim periods beginning with the first quarter ended 2025. Early adoption is permitted and retrospective adoption is required for all prior periods presented. The Fund is currently assessing the impact of this guidance, however, the Fund does not expect a material impact on its consolidated financial statements.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”),” which intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Fund is currently assessing the impact of this guidance, however, the Fund does not expect a material impact to its consolidated financial statements.

(3) Investment Advisory and Other Agreements

The Adviser is registered as an investment adviser under the Advisers Act. The Adviser is an affiliate of Ares Management and leverages Ares Management’s entire investment platform and benefits from the significant capital markets, trading and research expertise of all of Ares Management’s investment professionals.

Pursuant to the investment advisory agreement, dated December 6, 2016 (the “Investment Advisory Agreement”) (most recently amended and restated as of May 22, 2020), by and between the Fund and the Adviser, the Adviser provides certain investment advisory and administrative services to the Fund and in consideration of the advisory services provided, the Adviser is entitled to a fee consisting of two components — a base management fee (the “Management Fee”) and an incentive fee (the “Incentive Fee”). Pursuant to the investment sub-advisory agreement, dated as of December 6, 2016 (the “Investment Sub-Advisory Agreement”), by and among the Adviser, Ares Capital Management II LLC (the “Sub-Adviser”) and the Fund, the Adviser pays the Sub-Adviser 40% of the Management Fee and Incentive Fee actually received and retained and not otherwise used to support expenses.

Pursuant to the Investment Advisory Agreement, the Fund has agreed to pay the Adviser the Management Fee at an annual rate of 1.25% of the average daily value of the Fund’s total assets (including any assets attributable to any preferred shares issued or to indebtedness) minus the Fund’s liabilities other than liabilities relating to indebtedness. During the six months ended June 30, 2024, the Fund incurred $30,580 of Management Fees.

The Incentive Fee is calculated and payable quarterly in arrears based upon each share class’s “pre-incentive fee net investment income” for the immediately preceding fiscal quarter, and is subject to a hurdle rate, expressed as a rate of return on each share class’s “average daily net asset value,” equal to 1.50% per quarter (or an annualized hurdle rate of 6.00%), subject to a “catch-up” feature. For this purpose, “pre-incentive fee net investment income” means interest income, dividend income and any other income accrued during the fiscal quarter, minus each share class’s operating expenses for the quarter and the distribution and/or shareholder servicing fees (if any) applicable to each class accrued during the fiscal quarter. For such purposes, each share class’s operating expenses will include the Management Fee, expenses reimbursed to the Adviser under the administration agreement, dated as of December 6, 2016 (the “Adviser Administration Agreement”), by and between the Fund and the Adviser, and any interest expense and distributions paid on any issued and outstanding preferred shares, but will exclude the Incentive Fee.

The “catch-up” provision is intended to provide the Adviser with an Incentive Fee of 15% on each share class’s pre-incentive fee net investment income when the share class’s pre-incentive fee net investment income reaches 1.765% of average daily net asset value in any fiscal quarter. During the six months ended June 30, 2024, all share classes incurred a total of $29,322 of Incentive Fees.

Semi Annual Report 2024   157

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Prior to May 22, 2020, the Incentive Fee was calculated and payable quarterly in arrears based upon the Fund’s (rather than each class’s) “pre-incentive fee net investment income” for the immediately preceding quarter, and was subject to a hurdle rate, expressed as a rate of return on the Fund’s “adjusted capital,” equal to 1.50% per quarter (or an annualized hurdle rate of 6.00%), subject to a “catch-up” feature. “Adjusted Capital” previously was defined as the cumulative gross proceeds received by the Fund from the sale of the Fund’s shares (including pursuant to the Fund’s DRIP (as defined below)), reduced by amounts paid in connection with purchases of the Fund’s shares pursuant to the Fund’s share repurchase program and further reduced by distribution representing a return of capital. In calculating any Incentive Fee, “pre-incentive fee net investment income” means interest income, dividend income and any other income accrued during the calendar quarter, minus the Fund’s operating expenses for the quarter.

The Adviser and the Sub-Adviser are obligated to pay expenses associated with providing the investment services stated in the Investment Advisory Agreement and Investment Sub-Advisory Agreement, respectively, including compensation of and office space for their officers and employees connected with investment and economic research, trading and investment management of the Fund.

Under the Expense Support Agreement, the Adviser may at its discretion, through the period ending July 31, 2025, reimburse the Fund’s or any class’s operating expenses to the extent that it deems appropriate in order to ensure that the Fund or a class bears an appropriate level of expenses (the “Expense Payment”). Prior to July 31, 2019, the Adviser had agreed contractually to reimburse the Fund’s initial organizational and offering costs, as well as the Fund’s operating expenses, to the extent that aggregate distributions made to the Fund’s shareholders during the applicable quarter exceeded the sum of (i) the Fund’s net investment Fund taxable income (including net short-term capital gains reduced by net long-term capital losses); (ii) the Fund’s net capital gains (including the excess of net long-term capital gains over net short-term capital losses); and (iii) dividends and other distributions paid to or otherwise earned by the Fund on account of investments in portfolio companies (to the extent such amounts listed in clause (iii) are not included under clauses (i) and (ii) above).

In consideration of the Adviser’s agreement to reimburse the Fund’s operating expenses, the Fund has agreed to repay the Adviser in the amount of any Fund expenses reimbursed subject to the limitation that a reimbursement (an “Adviser Reimbursement”) will be made only if and to the extent that (i) it is payable not more than three years from the last business day of the calendar quarter in which the applicable Expense Payment was made by the Adviser; (ii) the Adviser Reimbursement does not cause other fund operating expenses attributable to the applicable class (on an annualized basis and net of any reimbursements received by the Fund with respect to such class during such fiscal year) during the applicable quarter to exceed the percentage of the Fund’s average net assets attributable to common shares represented by other fund operating expenses allocable to the applicable class (as defined below) (on an annualized basis) during the quarter in which the applicable Expense Payment from the Adviser was made; and (iii) the distributions per share declared by the Fund for the applicable class at the time of the applicable Expense Payment are less than the effective rate of distributions per share for the applicable class at the time the Adviser Reimbursement would be paid. Other fund operating expenses is defined as the Fund’s total Operating Expenses (as defined below), excluding the Management Fee, the Incentive Fee, offering expenses, financing fees and costs, interest expense and extraordinary expenses. “Operating Expenses” means all operating costs and expenses incurred by the Fund, as determined in accordance with GAAP for investment companies. The Expense Support Agreement was renewed for another year in May 2024 and is set to expire on July 31, 2025, unless renewed by the mutual agreement of the Adviser and the Board. The Expense Support Agreement may be terminated only by the Board on notice to the Adviser. For the six months ended June 30, 2024, the Adviser did not provide any expense support and the Fund did not incur any Adviser Reimbursement.

The table below presents a summary of all expenses supported by the Adviser for each of the following three month periods in which the Fund received expense support from the Adviser and associated dates through which such expenses are eligible for reimbursement from the Fund.

Fund Level Expense Support

					Expense				Ratio of Other
	Expense				Support				Fund Operating		Annualized
	Support		Recoupment		No Longer		Unreimbursed		Expenses to		Distribution
	from the		of Expense		Eligible for		Expense		Average Net		Ratios for the		Eligible for
	Adviser		Support		Reimbursement		Support		Assets for the		Period^(b)		Reimbursement
Three Months Ended	($)		($)		($)		($)		Period^(a)%		($)		through
January 31, 2017		335		335		—		—		68.82		—	January 31, 2020
April 30, 2017		820		820		—		—		54.97		1.39	April 30, 2020
July 31, 2017		738		738		—		—		37.93		1.39	July 31, 2020
Total		1,893		1,893		—		—

158

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Class A

									Ratio of Other
					Expense				Fund
	Expense				Support				Operating		Annualized
	Support		Recoupment		No Longer		Unreimbursed		Expenses to		Distribution
	from the		of Expense		Eligible for		Expense		Average Net		Ratios for the		Eligible for
	Adviser		Support		Reimbursement		Support		Assets for the		Period^(b)		Reimbursement
Three Months Ended	($)		($)		($)		($)		Period^(a)%		($)		through
July 31, 2017		193		193		—		—		9.01		1.39	July 31, 2020
October 31, 2017		592		291		301		—		7.68		1.39	October 31, 2020
January 31, 2018		412		111		301		—		5.42		1.39	January 31, 2021
April 30, 2018		307		118		189		—		4.43		1.39	April 30, 2021
July 31, 2018		282		137		145		—		3.86		1.39	July 31, 2021
October 31, 2018		351		66		285		—		3.15		1.39	October 31, 2021
January 31, 2019		113		72		41		—		1.21		1.39	January 31, 2022
April 30, 2019		10		10		—		—		1.29		1.39	April 30, 2022
Total		2,260		998		1,262		—

Class C

									Ratio of Other
					Expense				Fund
	Expense				Support				Operating		Annualized
	Support		Recoupment		No Longer		Unreimbursed		Expenses to		Distribution
	from the		of Expense		Eligible for		Expense		Average Net		Ratios for the		Eligible for
	Adviser		Support		Reimbursement		Support		Assets for the		Period^(b)		Reimbursement
Three Months Ended	($)		($)		($)		($)		Period^(a)%		($)		through
July 31, 2017		—		—		—		—		—		—	July 31, 2020
October 31, 2017		99		99		—		—		5.32		1.39	October 31, 2020
January 31, 2018		174		64		110		—		6.07		1.39	January 31, 2021
April 30, 2018		206		2		204		—		4.94		1.39	April 30, 2021
July 31, 2018		264		21		243		—		4.33		1.39	July 31, 2021
October 31, 2018		313		—		313		—		3.66		1.39	October 31, 2021
January 31, 2019		163		—		163		—		1.96		1.39	January 31, 2022
April 30, 2019		84		84		—		—		2.03		1.39	April 30, 2022
Total		1,303		270		1,033		—

Class I

									Ratio of Other
					Expense				Fund
	Expense				Support				Operating		Annualized
	Support		Recoupment		No Longer		Unreimbursed		Expenses to		Distribution
	from the		of Expense		Eligible for		Expense		Average Net		Ratios for the		Eligible for
	Adviser		Support		Reimbursement		Support		Assets for the		Period^(b)		Reimbursement
Three Months Ended	($)		($)		($)		($)		Period^(a)%		($)		through
July 31, 2017		—		—		—		—		—		—	July 31, 2020
October 31, 2017		172		172		—		—		4.81		1.39	October 31, 2020
January 31, 2018		246		246		—		—		5.03		1.39	January 31, 2021
April 30, 2018		369		369		—		—		3.84		1.39	April 30, 2021
July 31, 2018		521		521		—		—		3.19		1.39	July 31, 2021
October 31, 2018		779		779		—		—		2.45		1.39	October 31, 2021
January 31, 2019		281		281		—		—		0.96		1.39	January 31, 2022
April 30, 2019		—		—		—		—		—		1.39	April 30, 2022
Total		2,368		2,368		—		—

Semi Annual Report 2024

159

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Class L

									Ratio of Other
					Expense				Fund
	Expense				Support				Operating		Annualized
	Support		Recoupment		No Longer		Unreimbursed		Expenses to		Distribution
	from the		of Expense		Eligible for		Expense		Average Net		Ratios for the		Eligible for
	Adviser		Support		Reimbursement		Support		Assets for the		Period^(b)		Reimbursement
Three Months Ended	($)		($)		($)		($)		Period^(a)%		($)		through
July 31, 2017		—		—		—		—		—		—	July 31, 2020
October 31, 2017		—		—		—		—		—		—	October 31, 2020
January 31, 2018		—		—		—		—		5.49		1.39	January 31, 2021
April 30, 2018		4		4		—		—		3.54		1.39	April 30, 2021
July 31, 2018		9		9		—		—		3.23		1.39	July 31, 2021
October 31, 2018		16		16		—		—		2.62		1.39	October 31, 2021
January 31, 2019		7		7		—		—		1.46		1.39	January 31, 2022
April 30, 2019		2		2		—		—		1.54		1.39	April 30, 2022
Total		38		38		—		—

Class U

Ratio of Other

Expense

Fund

Expense

Support

Operating

Annualized

Support

Recoupment

No Longer

Unreimbursed

Expenses to

Distribution

from the

of Expense

Eligible for

Expense

Average Net

Ratios for the

Eligible for

Adviser

Support

Reimbursement

Support

Assets for the

Period^(b)

Reimbursement

Three Months Ended

($)

Period^(a)%

($)

through

December 31, 2019

—

1.72

1.39

December 31, 2022

Total

—

(a) Other Fund Operating Expenses is defined as the Fund’s total Operating Expenses (as defined below), excluding the Management Fee and Incentive Fee, offering expenses, financing fees and costs, interest expense and extraordinary expenses. “Operating Expenses” means all operating costs and expenses incurred by the Fund, as determined in accordance with generally accepted accounting principles for investment companies.

(b) The Annualized Distribution Rate per Share equals the projected annualized distribution amount which is calculated based on the average regular cash distributions per share that were declared during record dates in the applicable Expense Support Payment Quarter.

Pursuant to the Adviser Administration Agreement, the Adviser furnishes the Fund with office equipment and clerical, bookkeeping and record keeping services at the Adviser’s office facilities. Under the Adviser Administration Agreement, the Fund is obligated to reimburse the Adviser, at cost, based upon the Fund’s allocable portion of the Adviser’s overhead and other expenses (including travel expenses) incurred by the Adviser in performing its obligations under the Adviser Administration Agreement, including the Fund’s allocable portion of the compensation, rent and other expenses of certain of its officers (including but not limited to the chief compliance officer, chief financial officer, chief accounting officer, general counsel, treasurer and assistant treasurer) and their respective staffs. The Adviser Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party. The total of such expenses incurred for the six months ended June 30, 2024 was $1,529. These expenses were included in “other expenses” in the consolidated statement of operations.

Pursuant to an administration agreement between ALPS Fund Services, Inc. (“ALPS”) and the Fund, ALPS performs, or administers the performance of, certain of the Fund’s required administrative services, which include, among other things, providing assistance in accounting, legal, compliance, and operations, preparing the financial records that the Fund is required to maintain and preparing reports to the Fund’s shareholders and reports filed with the SEC. In addition, ALPS coordinates the preparation and filing of the Fund’s tax returns and generally coordinates the payment of the Fund’s expenses and the performance of administrative and professional services rendered to the Fund by others. The Fund pays ALPS for these services. The total of such expenses incurred by the Fund for the six months ended June 30, 2024 was $1,383. These expenses were included in “other expenses” in the consolidated statement of operations.

160

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Pursuant to a transfer agent agreement between SS&C GIDS, Inc. (“SS&C GIDS”) and the Fund, SS&C GIDS performs transfer agency services for the Fund. SS&C GIDS maintains the shareholder accounting records for the Fund. The Fund pays SS&C GIDS for these services. The total of such expenses incurred for the six months ended June 30, 2024 was $481. These expenses were included in “other expenses” in the consolidated statement of operations.

Shareholder Service Expenses

The Fund has adopted a “Shareholder Services Plan” with respect to its Class A, Class C, Class L and Class U-2 Shares under which the Fund may compensate financial industry professionals for providing ongoing services in respect of clients with whom they have distributed shares of the Fund. Such services may include electronic processing of client orders, electronic fund transfers between clients and the Fund, account reconciliations with the Fund’s transfer agent, facilitation of electronic delivery to clients of Fund documentation, monitoring client accounts for back-up withholding and any other special tax reporting obligations, maintenance of books and records with respect to the foregoing, and such other information and liaison services as the Fund or the Adviser may reasonably request. Under the Shareholder Services Plan, the Fund, with respect to Class A, Class C, Class L and Class U-2 Shares, may incur expenses on an annual basis equal to 0.25% of its average net assets attributable to Class A, Class C, Class L and Class U-2 Shares, respectively.

Distribution Plan

The Fund, with respect to its Class C, Class L, Class U, Class W and Class U-2 Shares, is authorized under a “Distribution Plan” to pay to ALPS Distributors, Inc. (the “Distributor”) a distribution fee for certain activities relating to the distribution of shares to investors. These activities include marketing and other activities to support the distribution of Class C, Class L, Class U, Class W and Class U-2 shares. The Distribution Plan operates in a manner consistent with Rule 12b-1 under the Investment Company Act, which regulates the manner in which an open-end investment company may directly or indirectly bear the expenses of distributing its shares. Although the Fund is not an open-end investment company, it has undertaken to comply with the terms of Rule 12b-1 as a condition of an exemptive order under the Investment Company Act which permits it to offer multiple classes of shares. Under the Distribution Plan, the Fund pays the Distributor a distribution fee at an annual rate of 0.75% of average daily net assets attributable to Class C Shares, 0.25% of the average daily net assets attributable to Class L Shares, 0.50% of the average daily net assets attributable to Class W Shares and Class U-2 Shares, and 0.75% of the average daily net assets attributable to Class U Shares. Some or all of such distribution fee may be paid by the Distributor to certain financial intermediaries.

The Fund may be limited in its ability to declare any cash distribution on its capital stock or purchase its capital stock unless, at the time of such declaration or purchase, the Fund has an asset coverage (on its indebtedness) of at least 300% after deducting the amount of such distribution or purchase price, as applicable. For non-public indebtedness issued by the Fund or its subsidiaries (for example, the State Street Credit Facility and the Wells Credit Facility, both as defined below), the Fund may be able to continue to pay distributions on its capital stock or purchase its capital stock even if the asset coverage ratio on its indebtedness falls below 300%.

(4) Fair Value of Financial Instruments

The Fund follows ASC 825-10, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASC 825-10”), which provides companies the option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect of the company’s choice to use fair value on its earnings. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheet. The Fund has not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. With the exception of the line items entitled “other assets”, “mandatory redeemable preferred shares” and “debt,” which are reported at amortized cost, the carrying value of all other assets and liabilities approximate fair value.

Semi Annual Report 2024

161

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

The Fund also follows ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”), which among other matters, requires enhanced disclosures about investments that are measured and reported at fair value. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Fund to assume that the portfolio investment is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820-10, the Fund has considered its principal market as the market in which the Fund exits its portfolio investments with the greatest volume and level of activity. ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820-10, these inputs are summarized in the three broad levels listed below:

●

Level 1 — Valuations based on quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access.

●

Level 2 — Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

●

Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

In addition to using the above inputs in investment valuations, the Valuation Designee continues to employ the net asset valuation policy and procedures that have been reviewed by the Fund’s Board in connection with their designation of the Adviser as the Fund’s valuation designee and are consistent with the provisions of Rule 2a-5 under the Investment Company Act and ASC 820-10 (see Note 2 for further information). Consistent with its valuation policies and procedures, the Valuation Designee evaluates the source of inputs, including any markets in which the Fund’s investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. Because there is not a readily available market value for most of the investments in the Fund’s portfolio, the fair value of the investments must typically be determined using unobservable inputs.

The assets and liabilities classified as Level 1 or Level 2 are typically valued based on quoted market prices, forward foreign exchange rates, dealer quotations or alternative pricing sources supported by observable inputs. The Valuation Designee obtains prices from independent pricing services which generally utilize broker quotes and may use various other pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data. The Valuation Designee is responsible for all inputs and assumptions related to the pricing of securities. The Valuation Designee has internal controls in place that support its reliance on information received from third-party pricing sources. As part of its internal controls, the Valuation Designee obtains, reviews, and tests information to corroborate prices received from third-party pricing sources. For any security, if market or dealer quotations are not readily available, or if the Valuation Designee determines that a quotation of a security does not represent a fair value, then the security is valued at a fair value as determined in good faith by the Valuation Designee, subject to the oversight of the Board and will be classified as Level 3. In such instances, the Valuation Designee will use valuation techniques consistent with the market or income approach to measure fair value and will give consideration to all factors which might reasonably affect the fair value.

The Fund’s portfolio investments classified as Level 3 (other than as described below in the following paragraph) are typically valued using two different valuation techniques. The first valuation technique is an analysis of the enterprise value (“EV”) of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The primary method for determining EV uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA (generally defined as net income before net interest expense, income tax expense, depreciation and amortization). EBITDA multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any. The Valuation Designee may also employ other valuation multiples to determine EV, such as revenues. The Valuation Designee may also use industry specific valuation analyses to determine EV, such as capitalization rate analysis used in the real estate industry. The second method for determining EV uses a discounted cash flow analysis whereby future expected cash flows of the portfolio company are discounted to determine a present value using estimated discount rates (typically a weighted average cost of capital based on costs of debt and equity consistent with current market conditions). The EV analysis is performed to determine the value of equity investments, the value of debt investments in portfolio companies where the Fund has control or could gain control through an option or warrant security, and to determine if there is credit impairment for debt investments. If debt investments are credit impaired, an EV analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind down analysis may be utilized to estimate EV. The second valuation technique is a yield analysis, which is typically performed for non-credit impaired debt investments in portfolio companies where the Fund does not own a controlling equity position. To determine fair value using a yield analysis, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk. In the yield analysis, the Valuation Designee considers the current contractual interest rate, the maturity and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by the Fund are substantially illiquid with no active transaction market, the Valuation Designee depends on primary market data, including newly funded transactions, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.

162

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

The fair value of CLOs is estimated based on various valuation models from third-party pricing services. The provided prices are checked using internally developed models. The valuation models generally utilize discounted cash flows and take into consideration prepayment and loss assumptions, based on historical experience and projected performance, economic factors, the characteristics and condition of the underlying collateral, comparable yields for similar securities and recent trading activity. These securities are classified as Level 3.

Private asset-backed securities classified as Level 3 are typically valued using two different valuation techniques. The first valuation technique is an analysis of the forecasted cash flows of the security. The forecasted cash flows take into consideration prepayment and loss assumptions, based on historical experience and projected performance, economic factors, and the characteristics and condition of the underlying collateral. For equity securities, the projected cash flows are present valued using a market discount rate to determine the fair value. For debt securities, the analysis is used to determine if the borrower has the ability to repay its obligations. If it is determined that the borrower does have the ability to repay its obligations, the second valuation technique that is utilized is a yield analysis. To determine fair value using a yield analysis, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk. In the yield analysis, the Valuation Designee considers the current contractual interest rate, the maturity and other terms of the investment relative to risk of the borrower and the specific investment. As the debt investments are substantially illiquid with no active transaction market, the Valuation Designee depends on primary market data, including newly funded transactions, as inputs in determining the appropriate market yield, as applicable.

The following table is a summary of the inputs used as of June 30, 2024, in valuing the Fund’s investments carried at fair value:

				Level 2 —
				Other			Level 3 —
	Level 1 —			Significant			Significant
	Quoted			Observable			Unobservable
	Prices ($)			Inputs ($)			Inputs ($)		Total ($)
Senior Loans		—			1,630,917			2,648,661		4,279,578
Subordinated Loans		—			—			75,602		75,602
Corporate Bonds		—			313,899			51,811		365,710
Collateralized Loan Obligations		—			—			323,862		323,862
Private Asset-Backed Investments		—			—			97,023		97,023
Preferred Stock		—			—			278,455		278,455
Common Stock		902			530			75,426		76,858
Warrants		—			—			2,194		2,194
Total Investments		902			1,945,346			3,553,034		5,499,282
Derivative Assets:
Foreign Currency Forward Contracts		—			206			—		206
Purchased Equity Options		6			—			—		6
Credit Default Swaps		—			236			—		236
Interest Rate Swaps		—			1,025			—		1,025
Derivative Liabilities:
Foreign Currency Forward Contracts		—			(3,526	)		—		(3,526	)
Written Equity Options		(3	)		—			—		(3	)
Credit Default Swaps		—			(488	)		—		(488	)

Semi Annual Report 2024

163

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

The following table summarizes the significant unobservable inputs the Valuation Designee used to value the majority of the Fund’s investments categorized within Level 3 as of June 30, 2024. The table is not intended to be all- inclusive, but instead to capture the significant unobservable inputs relevant to the determination of fair values.

			Primary
Asset	Fair Value		Valuation		Estimated		Weighted
Category	($)		Techniques	Inputs	Range		Average^(a)
Senior Loans		2,526,945	Yield Analysis	Market Yield	8.4%-46.7%			12.1	%
Senior Loans		90,951	Broker Quotes	N/A	N/A			N/A
Senior Loans		20,518	Enterprise Value Coverage Analysis	Implied Enterprise Value	1.0x-11.0x			5.6	x
Senior Loans		9,873	EV Market Multiple Analysis	Valuation Multiple	3.9x-12.0x			3.9	x
Senior Loans		374	Recovery Analysis	Contract Asset Collections Multiple	1.0x			1.0	x
Subordinated Loans		75,602	Yield Analysis	Yield	11.0%-16.5%			13.8	%
Corporate Bonds		33,227	Yield Analysis	Market Yield	11.0%-17.2%			15.2	%
Corporate Bonds		17,809	Broker Quotes	N/A	N/A			N/A
Corporate Bonds		775	EV Market Multiple Analysis	Valuation Multiple	20.0x			20.0	x
Collateralized Loan Obligations		323,862	Broker Quotes	N/A	N/A			N/A
Private Asset-Backed Investments		97,023	Income (Other)	Yield	4.5%-14.3%			9.5	%
				Discount Rate	25.0%			25.0	%
				Constant Default Rate	2.5%-49.0%			26.1	%
				Constant Prepayment Rate	0.0-19.0%			9.6	%
				Recovery Rate	12.0%-65%			49.6	%
				Collection Rate	93.0%			93.0	%
Preferred Stock		276,771	EV Market Multiple Analysis	Valuation Multiple	1.0x-28.5x			12.8	x
Preferred Stock		1,589	Enterprise Value Coverage Analysis	Implied Enterprise Value	1.0x-11.0x			1.0	x
Preferred Stock		95	Black- Scholes Analysis	Stock price	$	23.09	$	23.09
				10-year treasury rate	4.55%			4.55	%
				exercise price	$	40.00	$	40.00
Common Stock		74,991	EV Market Multiple Analysis	Valuation Multiple	1.7x-30.6x			12.1	x
Common Stock		13	Enterprise Value Coverage Analysis	Implied Enterprise Value	1.0x-11.0x			1.0	x
Common Stock		422	NAV Analysis	Market Yield	N/A			N/A
Warrants		2,194	EV Market Multiple Analysis	Valuation Multiple	1.3x-9.1x			7.1	x
Total Level 3 Investments		3,553,034

(a) Unobservable inputs were weighted by the relative fair value of investments.

Changes in market yields, discount rates or EBITDA multiples, each in isolation, may change the fair value of certain of the Fund’s investments. Generally, an increase in market yields or discount rates or decrease in EBITDA multiples may result in a decrease in the fair value of certain of the Fund’s investments.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.

164

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

The following table is a reconciliation of the Fund’s investments in which significant unobservable inputs (Level 3) were used in determining fair value for the six months ended June 30, 2024:

													Private
										Collateralized			Asset-
										Loan			Backed			Preferred			Common
	Senior			Subordinated			Corporate			Obligations			Investments			Stock			Stock			Warrants
	Loans ($)			Loans ($)			Bonds ($)			($)			($)			($)			($)			($)			Total ($)
Balance as of December 31, 2023		2,363,517			53,395			49,486			345,882			63,590			189,554			51,273			2,005			3,118,702
Purchases		1,118,252			27,014			5,915			48,438			42,069			80,472			22,020			1,056			1,345,236
Sales and principal redemptions		(834,469	)		(1,444	)		(4,151	)		(76,849	)		(7,998	)		11,578			(1,323	)		(511	)		(915,167	)
Net realized and unrealized gains (losses)		(13,716	)		776			545			6,511			(755	)		(3,149	)		3,438			(81	)		(6,431	)
Accrued discounts (premiums)		3,507			139			16			(120	)		117			—			—			(275	)		3,384
Transfers in to Level 3^(a)		14,422			2,852			—			—			—			—			18			—			17,292
Transfers out of Level 3^(a)		(2,852	)		(7,130	)		—			—			—			—			—			—			(9,982	)
Balance as of June 30, 2024		2,648,661			75,602			51,811			323,862			97,023			278,455			75,426			2,194			3,553,034
Net change in unrealized gains (losses) from investments held at June 30, 2024		(21,135	)		469			515			6,013			(793	)		(3,155	)		3,008			272			(14,806	)

(a) Investments were transferred into and out of Level 3 during the six months ended June 30, 2024. Transfers between Levels 2 and 3 were as a result of changes in the observability of significant inputs or available market data for certain portfolio companies.

The following are the carrying values and fair values of the Fund’s senior secured revolving credit facilities and mandatory redeemable preferred shares as of June 30, 2024.

	Carrying Value		Fair Value^(b)
	($)		($)
Wells Credit Facility^(a)		595,314		595,314
State Street Credit Facility^(a)		303,447		303,447
Series A Mandatory Redeemable Preferred Shares		59,725		59,850
Series B Mandatory Redeemable Preferred Shares		89,554		89,775
Series C Mandatory Redeemable Preferred Shares		148,997		147,750
Series D Mandatory Redeemable Preferred Shares		54,623		54,725
Series E Mandatory Redeemable Preferred Shares		64,334		64,025
Series F Mandatory Redeemable Preferred Shares		84,405		85,000
Series G Mandatory Redeemable Preferred Shares		64,442		65,000
Series H Mandatory Redeemable Preferred Shares		98,858		100,000
Series I Mandatory Redeemable Preferred Shares		49,421		50,000
Series J Mandatory Redeemable Preferred Shares		49,421		50,000
		1,662,541		1,664,886

(a) The Wells Credit Facility and the State Street Credit Facility (each as defined below) carrying values are the same as the principal amounts outstanding.

(b) The fair value of these debt obligations would be categorized as level 2 under ASC 820-10.

(5) Common Stock

The Fund began continuously offering its shares on January 3, 2017. The Fund, pursuant to an exemptive order granted by the SEC on July 11, 2017, offers multiple classes of shares. As of July 11, 2017, the Fund simultaneously redesignated its issued and outstanding shares as Class A shares and created its Class C, Class I and Class L shares. As of December 4, 2018, the Fund created its Class U and Class W shares. As of March 31, 2020, the Fund created its Class U-2 shares. The maximum sales load imposed on purchases, maximum contingent deferred sales charges, shareholder servicing and/or distribution fees charged will vary depending on each share class.

Common share transactions were as follows:

	For the Six Months
Class A	Ended June 30, 2024
	Shares			Amount ($)
Common shares outstanding — beginning of period	2,731			68,988
Common shares issued		682			17,085
Reinvestment of distributions		23			564
Common shares repurchased		(163	)		(4,062	)
Common shares outstanding — end of period		3,273			82,575

Semi Annual Report 2024

165

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

	For the Six Months
Class C	Ended June 30, 2024
	Shares			Amount ($)
Common shares outstanding — beginning of period		3,200			81,571
Common shares issued		84			2,088
Reinvestment of distributions		57			1,427
Common shares repurchased		(265	)		(6,585	)
Common shares outstanding — end of period		3,076			78,501

	For the Six Months
Class I	Ended June 30, 2024
	Shares			Amount ($)
Common shares outstanding — beginning of period		96,434			2,441,526
Common shares issued		26,019			658,447
Reinvestment of distributions		944			23,899
Common shares repurchased		(6,138	)		(155,128	)
Common shares outstanding — end of period		117,259			2,968,744

	For the Six Months
Class L	Ended June 30, 2024
	Shares			Amount ($)
Common shares outstanding — beginning of period		451			11,441
Common shares issued		27			670
Reinvestment of distributions		14			357
Common shares repurchased		(5	)		(126	)
Common shares outstanding — end of period		487			12,342

	For the Six Months
Class U	Ended June 30, 2024
	Shares			Amount ($)
Common shares outstanding — beginning of period		19,025			475,860
Common shares issued		2,657			66,860
Reinvestment of distributions		629			15,842
Common shares repurchased		(549	)		(13,786	)
Common shares outstanding — end of period		21,762			544,776

	For the Six Months
Class U-2	Ended June 30, 2024
	Shares			Amount ($)
Common shares outstanding — beginning of period		4,262			107,199
Common shares issued		618			15,512
Reinvestment of distributions		143			3,605
Common shares repurchased		(201	)		(5,039	)
Common shares outstanding — end of period		4,822			121,277

	For the Six Months
Class W	Ended June 30, 2024
	Shares			Amount ($)
Common shares outstanding — beginning of period		1,356			34,843
Common shares issued		—			—
Reinvestment of distributions		41			1,026
Common shares repurchased		(21	)		(536	)
Common shares outstanding — end of period		1,376			35,333

Repurchase Program

Beginning in the second quarter of 2017, the Fund began offering, and currently intends to continue offering, the quarterly repurchase of shares in such amount as may be determined by the Board in accordance with the Fund’s fundamental policy to conduct repurchase offers for between 5%-25% of its outstanding shares each quarter.

The following table summarizes the share repurchases completed during the six months ended June 30, 2024:

										% of
						Aggregate				Outstanding
						Consideration				Shares			% of
				Purchase		for		Size of		Offered			Outstanding
	Repurchase	Shares		Price		Repurchased		Repurchase		to be			Shares
Three Months Ended	Date	Repurchased		Per Share		Shares		Offer		Repurchased			Repurchased
December 31, 2023	January 11, 2024		3,104	$	25.15	$	78,063		6,418		5.00	%		2.42	%
March 31, 2024	April 11, 2024		4,240		25.28		107,197		7,091		5.00	%		2.99	%
Total			7,344			$	185,260

166

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

(6) Debt

In accordance with the Investment Company Act, the Fund is allowed to borrow amounts with respect to senior securities representing indebtedness (such as the senior secured revolving credit facilities), such that its asset coverage, calculated pursuant to the Investment Company Act, is at least 300% after such borrowing.

State Street Credit Facility

The Fund is a party to a senior secured revolving credit facility (as amended, the “State Street Credit Facility”), that allows the Fund to borrow up to $400,000 at any one time outstanding. The State Street Credit Facility’s stated maturity date is August 25, 2024. Under the State Street Credit Facility, the Fund is required to comply with various covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including, without limitation, covenants related to: (a) limitations on the incurrence of additional indebtedness, including additional mandatory redeemable preferred shares, and liens, (b) limitations on certain restricted payments and (c) maintaining a ratio of total assets (less total liabilities other than senior securities representing indebtedness) to senior securities representing indebtedness plus the involuntary liquidation preference of the mandatory redeemable preferred shares of the Fund and its consolidated subsidiaries (subject to certain exceptions) of not less than 2:1. These covenants are subject to important limitations and exceptions that are described in the documents governing the State Street Credit Facility. Amounts available to borrow under the State Street Credit Facility (and the incurrence of certain other permitted debt) are also subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Fund’s portfolio that are pledged as collateral. As of June 30, 2024, the Fund was in compliance with the terms of the State Street Credit Facility. See Note 12 for a subsequent event relating to the State Street Credit Facility.

As of June 30, 2024, there was $303,447 outstanding under the State Street Credit Facility. Since August 25, 2022, the interest rate charged on the State Street Credit Facility is based on an applicable Secured Overnight Financing Rate (“SOFR”) rate plus a credit spread adjustment of 0.10% and an applicable spread of 1.00% (as defined in the documents governing the State Street Credit Facility). The Fund is required to pay a commitment fee of 0.25% per annum on any unused portion of the State Street Credit Facility. See Note 12 for a subsequent event relating to the State Street Credit Facility.

For the six months ended June 30, 2024, the components of interest and unused commitment fee expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the State Street Credit Facility were as follows:

	For the Six Months
	Ended June 30, 2024
	($)
Stated interest expense		9,422
Unused commitment fee		117
Amortization of debt issuance costs		345
Total interest and credit facility fees expense		9,884
Cash paid for interest expense		9,269
Average stated interest rate		6.18	%
Average outstanding balance		306,706

Wells Credit Facility

The Fund and one of the Fund’s consolidated subsidiaries, CADEX Credit Financing, LLC (the “Financing Sub 1”), are party to a revolving funding facility (as amended, the “Wells Credit Facility”), that allows the Financing Sub 1 to borrow up to $850,000 at any one time outstanding. The Wells Credit Facility is secured by all of the assets held by, and the membership interest in, the Financing Sub 1. The end of the reinvestment period and the stated maturity date for the Wells Credit Facility are November 16, 2024 and November 16, 2026, respectively.

Amounts available to borrow under the Wells Credit Facility are subject to a borrowing base that applies different advance rates to different types of assets held by the Financing Sub 1. The Financing Sub 1 is also subject to limitations with respect to the loans securing the Wells Credit Facility, including restrictions on loan size, borrower domicile, payment frequency and status, collateral interests, and loans with fixed rates, as well as restrictions on portfolio company leverage, which may also affect the borrowing base and therefore amounts available to borrow. The Fund and the Financing Sub 1 are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the Wells Credit Facility. As of June 30, 2024, the Fund and the Financing Sub 1 were in compliance with the terms of the Wells Credit Facility.

As of June 30, 2024, there was $595,314 outstanding under the Wells Credit Facility. Since May 19, 2022, the interest rate charged on the Wells Credit Facility is based on an applicable SOFR rate plus a credit spread adjustment of 0.10% and an applicable spread of 2.00% (as defined in the documents governing the Wells Credit Facility). The Financing Sub 1 is also required to pay a commitment fee of between 0.50% and 1.25% per annum depending on the size of the unused portion of the Wells Credit Facility.

Semi Annual Report 2024

167

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

	For the Six Months
	Ended June 30, 2024
	($)
Stated interest expense	20,738
Unused commitment fee	944
Amortization of debt issuance costs	1,034
Total interest and credit facility fees expense	22,716
Cash paid for interest expense	17,090
Average stated interest rate	7.87	%
Average outstanding balance	529,860

(7) Mandatory Redeemable Preferred Shares

The Fund has authorized and issued certain mandatory redeemable preferred shares (each issuance of which is referred to herein using the defined term set forth under the “Mandatory Redeemable Preferred Shares” column of the table below and collectively referred to as the “MRP Shares”). Certain key terms related to the features for the MRP Shares as of June 30, 2024 are listed below.

	Shares							Dividend
	Authorized		Gross			Liquidation		Rate per
Mandatory Redeemable Preferred Shares	and Issued		Proceeds		Redemption Date	Preference		annum⁽¹⁾
Series A MRP Shares		2,400	$	60,000	July 30, 2026	$	25.00		2.68	%
Series B MRP Shares		3,600		90,000	September 30, 2026		25.00		2.68	%
Series C MRP Shares		6,000		150,000	September 30, 2028		25.00		3.07	%
Series D MRP Shares		2,200		55,000	January 6, 2027		25.00		2.96	%
Series E MRP Shares		2,600		65,000	January 6, 2032		25.00		3.48	%
Series F MRP Shares		3,400		85,000	June 1, 2026		25.00		7.16	%
Series G MRP Shares		2,600		65,000	June 1, 2028		25.00		7.23	%
Series H MRP Shares⁽²⁾		4,000		100,000	June 7, 2027		25.00		6.25	%
Series I MRP Shares⁽²⁾		2,000		50,000	June 7, 2029		25.00		6.35	%
Series J MRP Shares⁽²⁾		2,000		50,000	July 3, 2029		25.00		6.35	%
Total Redemption Amount			$	770,000

(1) Payable quarterly. The weighted average dividend rate for the MRP Shares is 4.66% per annum.

(2) In connection with the issuance of the Series H MRP Shares, the Series I MRP Shares and the Series J MRP Shares, the Fund entered into interest rate swap agreements to more closely align the interest rate of such liabilities with the Fund’s investment portfolio, which consists of primarily floating rate loans. See Note 9 for more information on the Fund’s interest rate swaps.

168

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

The MRP Shares are subject to optional and mandatory redemption in certain circumstances. The MRP Shares will be subject to redemption, at the option of the Fund, in whole or in part at any time only for the purposes of decreasing leverage of the Fund. The Fund may be obligated to redeem certain of the MRP Shares if the Fund fails to maintain an asset coverage ratio, calculated in accordance with the Investment Company Act, greater than or equal to 225%. Holders of the MRP Shares are entitled to receive quarterly cumulative cash dividend payments on the first business day following each quarterly dividend date.

The redemption price per share is equal to the sum of the liquidation preference per share plus any accumulated but unpaid dividends plus, in some cases, an early redemption premium, which may vary based on the date of redemption. The Fund is subject to certain restrictions relating to the MRP Shares such as maintaining certain asset coverage ratio requirements. Failure to comply with these restrictions could preclude the Fund from declaring any dividends to common shareholders and could trigger the mandatory redemption of the MRP Shares. Additionally, in accordance with the Investment Company Act, the Fund may not issue additional MRP Shares if immediately after such issuance the Fund will not have an asset coverage of at least 200%. As of June 30, 2024, the Fund was in compliance with the terms applicable to the MRP Shares.

The Fund’s MRP Shares activity for the six months ended June 30, 2024 was as follows:

	Series A	Series B	Series C	Series D	Series E	Series F	Series G	Series H	Series I	Series J
	MRP	MRP	MRP	MRP	MRP	MRP	MRP	MRP	MRP	MRP
	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares	Shares
Shares outstanding — beginning of period	2,400	3,600	6,000	2,200	2,600	3,400	2,600	—	—	—
Shares issued	—	—	—	—	—	—	—	4,000	2,000	2,000
Shares outstanding — end of period	2,400	3,600	6,000	2,200	2,600	3,400	2,600	4,000	2,000	2,000

The Fund’s MRP Shares balance as of June 30, 2024 were as follows:

	Series A		Series B		Series C		Series D		Series E		Series F		Series G		Series H		Series I		Series J
	MRP		MRP		MRP		MRP		MRP		MRP		MRP		MRP		MRP		MRP
	Shares		Shares		Shares		Shares		Shares		Shares		Shares		Shares		Shares		Shares		Total
	($)		($)		($)		($)		($)		($)		($)		($)		($)		($)		($)
Principal amount	60,000		90,000		150,000		55,000		65,000		85,000		65,000		100,000		50,000		50,000		770,000
Unamortized issuance cost	(275	)	(446	)	(1,003	)	(377	)	(666	)	(595	)	(558	)	(1,142	)	(579	)	(579	)	(6,220	)
Carrying value	59,725		89,554		148,997		54,623		64,334		84,405		64,442		98,858		49,421		49,421		763,780

Dividends on the MRP Shares are accrued on a daily basis and included in interest and credit facility fee expense on the consolidated statement of operations and in interest and facility fees payable on the consolidated statement of assets and liabilities. The table below summarizes the components of interest expense, the effective dividend rates and cash paid on the Fund’s MRP Shares for the six months ended June 30, 2024:

	Series A		Series B		Series C		Series D		Series E		Series F		Series G		Series H		Series I		Series J
	MRP		MRP		MRP		MRP		MRP		MRP		MRP		MRP		MRP		MRP
	Shares		Shares		Shares		Shares		Shares		Shares		Shares		Shares		Shares		Shares		Total
	($)		($)		($)		($)		($)		($)		($)		($)		($)		($)		($)
Stated dividends	806		1,209		2,308		817		1,134		3,048		2,354		676		344		343		13,039
Amortization of deferred issuance costs	66		99		118		75		44		155		71		43		12		12		695
Total interest expense	872		1,308		2,426		892		1,178		3,203		2,425		719		356		355		13,734
Weighted average stated dividend rate	2.68	%	2.68	%	3.07	%	2.96	%	3.48	%	7.16	%	7.23	%	6.25	%	6.35	%	6.35	%	4.66	%
Cash paid for dividends	804		1,206		2,302		814		1,132		3,043		2,350		—		—		—		11,651

Semi Annual Report 2024

169

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

(8) Investment Transactions

For the six months ended June 30, 2024, the cost of investments purchased and proceeds from the sale of investments, excluding short obligations and derivatives, were as follows:

	For the Six Months
	Ended June 30, 2024
	($)
Cost of investments purchased		(3,291,560	)
Proceeds from the sale of investments		2,303,118

(9) Derivative Instruments

The Fund recognizes all of its derivative instruments at fair value as either assets or liabilities in the consolidated statement of assets and liabilities. The changes in the fair value are included in the consolidated statement of operations during the current year. Purchases of derivative contracts and proceeds from the sale of derivative contracts, as disclosed in the consolidated statement of cash flows, are indicative of the volume of derivative activity during the six months ended June 30, 2024. The Fund is exposed to certain risks relating to its ongoing operations; the primary risks managed by using derivative instruments are market risk, credit risk, and foreign exchange risk. Additionally, the Fund holds certain derivative instruments for investment purposes. As of or during the  six months ended June 30, 2024, the Fund held the following instruments meeting the definition of a derivative instrument: foreign currency forward contracts, interest rate swaps, equity options and credit default swaps.

The Fund operates as a “limited derivatives user” for purposes of the derivatives transactions exemption in Rule 18f-4. To qualify as a limited derivatives user, the Fund’s “derivatives exposure” is limited to 10% of its net assets subject to exclusions for certain currency or interest rate hedging transactions (as calculated in accordance with Rule 18f-4). If the Fund ceases to qualify as a “limited derivatives user” as defined in Rule 18f-4, the rule would, among other things, require the Fund to establish a comprehensive derivatives risk management program, to comply with certain value-at-risk based leverage limits, to appoint a derivatives risk manager and to provide additional disclosure both publicly and to the SEC regarding its derivatives positions.

Qualitative Disclosures of Derivative Financial Instruments

The following is a description of the derivatives utilized by the Fund during the reporting period, including the primary underlying risk exposure related to each instrument type.

Foreign Currency Forward Contracts

The Fund enters into foreign currency forward contracts from time to time to help mitigate its foreign currency risk exposure. As of June 30, 2024, the counterparty to the Fund’s foreign currency forward contracts was Goldman Sachs.

Interest Rate Swaps

In connection with the issuance of the Series H MRP Shares, the Series I MRP Shares and the Series J MRP Shares, the Fund entered into interest rate swap agreements to more closely align the interest rates of such liabilities with its investment portfolio, which consists primarily of floating rate loans. Under the interest rate swap agreements, the Fund receives a fixed interest rate and pays a floating interest rate of one-month SOFR plus an applicable spread, as disclosed below. As of June 30, 2024, the counterparty to the Fund’s interest rate swap agreements was Goldman Sachs. See Note 7 for more information on the Series H MRP Shares, the Series I MRP Shares and the Series J MRP Shares.

Equity Options

The Fund is subject to equity price risk in the normal course of pursuing its investment objective. The Fund may enter into options contracts based on an equity index or specific security in order to manage its exposure to changes in market conditions. The risks of entering into equity price risk derivative instruments include the possible lack of liquidity, failure of the counterparty to meet its obligations, and that there may be unfavorable changes in the underlying investments or instruments. The Fund may purchase or write an option contract to protect against declines in market value on the underlying index or security. A purchased option contract provides the Fund a right, but not an obligation, to buy (call) or sell (put) an equity-related asset at a specified exercise price within a certain period or on a specific date. A written option contract holds the corresponding obligation to sell (call writing) or buy (put writing) the underlying equity-related asset if the purchaser exercises the option contract. The buyer pays the seller an initial purchase price (premium) for this right. Option contracts purchased by the Fund are accounted for in the same manner as marketable portfolio securities. The premium received by the Fund for option contracts written is recorded as a liability. The proceeds from securities sold through the exercise of option contracts are decreased by the premium paid to purchase the option contracts. The Fund may recognize a realized gain or loss when the option contract is closed, exercised or expires. Net realized gains or losses occurring during the holding period of purchased options and written options contracts are included in the “net realized gains or losses on derivative contracts” in the accompanying consolidated statement of operations. Net unrealized gains or losses occurring during the holding period of purchased options and written options contracts are included in the “net unrealized gains or losses on derivative contracts” in the accompanying consolidated statement of operations.

170

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Credit Default Swaps

The Fund enters into credit default swap contracts for investment purposes and to manage its credit risk. Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a default or other credit event for the referenced entity, obligation or index. The Fund may purchase or sell protection. A seller of protection generally receives an upfront payment or periodic payments throughout the term of the swap provided there is no credit event. Such periodic payments received are accrued daily and accounted for as realized gains. If a credit event occurs, as defined under the terms of the swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The buyer of protection generally pays an upfront premium or periodic payments throughout the term of the swap provided there is no credit event. Such periodic payments paid are accrued daily and accounted for as realized losses.

Entering into credit default swaps involves, to varying degrees, elements of credit, market and documentation risk in excess of the related amounts recognized in the consolidated statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligations to perform or disagree as to the meaning of the contractual terms in the agreements, and that there will be unfavorable changes in net interest rates.

The Fund’s derivative contracts are subject to either International Swaps and Derivatives Association Master Agreements, or futures contracts/OTC addenda which contain certain covenants and other provisions that, if violated, may require the Fund to post collateral on derivatives if the Fund is in a net liability position with its counterparties exceeding certain amounts. As of June 30, 2024, there were no derivative instruments with credit-risk-related contingent features that are in a net liability position after taking into effect permissible offsetting. Additionally, OTC derivative counterparties may immediately terminate these agreements and the related derivative contracts if the Fund fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages or amounts. As of June 30, 2024, the termination values of these derivative contracts were approximately equal to their fair values.

Certain information related to the Fund’s derivative instruments as of June 30, 2024 is presented below.

				Gross Amount		Gross Amount			Balance Sheet
	Notional			of Recognized		of Recognized			Location of Net
Derivative Instrument	Amount		Maturity Date	Assets		Liabilities			Amounts
Foreign currency forward contract	SEK	320,430	July 26, 2024	$	30,269	$	(30,982	)	Accrued expenses and other payables
Foreign currency forward contract	€	156,646	July 26, 2024		167,955		(167,803	)	Other assets
Foreign currency forward contract	£	112,181	July 26, 2024		141,828		(143,770	)	Accrued expenses and other payables
Foreign currency forward contract	DKK	58,471	July 26, 2024		8,408		(8,400	)	Other assets
Foreign currency forward contract	CAD	25,233	July 18, 2024		18,452		(18,516	)	Accrued expenses and other payables
Foreign currency forward contract	NZD	19,321	July 26, 2024		11,768		(12,091	)	Accrued expenses and other payables
Foreign currency forward contract	AUD	17,366	July 26, 2024		11,592		(11,895	)	Accrued expenses and other payables
Foreign currency forward contract	CAD	16,224	July 26, 2024		11,865		(11,891	)	Accrued expenses and other payables
Foreign currency forward contract	AUD	15,108	August 20, 2024		10,093		(10,049	)	Other assets
Foreign currency forward contract	PLN	15,023	July 26, 2024		3,731		(3,760	)	Accrued expenses and other payables

Semi Annual Report 2024

171

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

				Gross Amount		Gross Amount			Balance Sheet
	Notional			of Recognized		of Recognized			Location of Net
Derivative Instrument	Amount		Maturity Date	Assets		Liabilities			Amounts
Foreign currency forward contract	NOK	11,681	July 26, 2024	$	1,095	$	(1,122	)	Accrued expenses and other payables
Foreign currency forward contract	£	3,371	August 21, 2026		4,270		(4,369	)	Accrued expenses and other payables
Foreign currency forward contract	$	193	August 20, 2024		289		(287	)	Other assets
Foreign currency forward contract	$	29	July 26, 2024		27		(27	)	Other assets
				$	421,642	$	(424,962	)

		Notional		Fund
Description	MRP Shares	Amount		Receives		Fund Pays	Maturity Date	Fair Value
Interest rate swap	Series H MRP Shares	$	100,000	6.250	%	SOFR +1.7420%	June 7, 2027	$	363
Interest rate swap	Series I MRP Shares	$	50,000	6.350	%	SOFR +2.0865%	June 7, 2029		324
Interest rate swap	Series J MRP Shares	$	50,000	6.350	%	SOFR +2.0895%	July 3, 2029		338
								$	1,025

Net realized gains (losses) on derivative instruments recognized by the Fund for the six months ended June 30, 2024 are in the following locations in the consolidated statement of operations:

		For the Six Months
		Ended June 30, 2024
Derivative Instrument	Statement Location	($)
Foreign currency forward contracts	Net realized losses on derivative contracts		(707	)
Written options	Net realized losses on derivative contracts		(138	)
Credit default swaps	Net realized losses on derivative contracts		(305	)
Total			(1,150	)

Net unrealized gains (losses) on derivative instruments recognized by the Fund for the six months ended June 30, 2024 are in the following locations in the consolidated statement of operations:

		For the Six Months
		Ended June 30, 2024
Derivative Instrument	Statement Location	($)
Foreign currency forward contracts	Net unrealized gains on derivative contracts		11,636
Interest rate swaps	Net unrealized gains on derivative contracts		1,206
Written options	Net unrealized gains on derivative contracts		44
Credit default swaps	Net unrealized gains on derivative contracts		184
Total			13,070

Offsetting Arrangements

Although the Fund generally presents derivative and other financial instruments on a gross basis in the consolidated statement of assets and liabilities, certain derivative and other financial instruments are subject to enforceable master netting arrangements with certain counterparties which allow for the derivative and other financial instruments to be offset.

172

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

The following table presents the rights of offset and related arrangements associated with the Fund’s derivative instruments as of June 30, 2024:

	Gross Amount			Gross Amount			Net Amounts			Gross Amounts Not Offset in Statement of Assets and Liabilities
	of Recognized			Offset in			of Assets					Collateral
	Assets			Assets			(Liabilities)			Financial		(Received)
Description	(Liabilities)			(Liabilities)			Presented			Instrument		Pledged			Net Amount
Assets:
Goldman Sachs:
Foreign currency forward contracts	$	186,745		$	(186,539	)	$	206		$	—	$	—		$	206
Interest rate swaps		1,024			—			1,024			—		(1,024	)		—
Total	$	187,769		$	(186,539	)	$	1,230		$	—	$	(1,024	)	$	206
Liabilities:
Goldman Sachs:
Foreign currency forward contracts	$	234,870		$	(238,396	)	$	(3,526	)	$	—	$	—		$	(3,526	)
Credit default swaps		(71	)		—			(71	)		—		71			—
Total	$	234,799		$	(238,396	)	$	(3,597	)	$	—	$	71		$	(3,526	)

(10) Income Taxes

The Fund intends to distribute all or substantially all of its taxable income to shareholders and to comply with the other requirements of the Code, applicable to RICs. Accordingly, no provision for U.S. federal income taxes is required.

The Fund may elect to incur an excise tax if it is deemed prudent by its Board from a cash management perspective or in the best interest of shareholders due to other facts and circumstances. For the six months ended June 30, 2024, the Fund incurred U.S. federal excise taxes of $3,419.

As of December 31, 2023, which is the end of the Fund’s most recent taxable year, the Fund had no uncertain tax positions that would require financial statement recognition, derecognition, or disclosure. The Fund files a U.S. federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.

(11) Risk Factors

Short Sales Risk

A short sale is a transaction in which the Fund sells an instrument that it does not own in anticipation that the market price will decline. To deliver the securities to the buyer, the Fund arranges through a broker to borrow the securities and, in so doing, the Fund becomes obligated to replace the securities borrowed at their market price at the time of replacement. When selling short, the Fund intends to replace the securities at a lower price and therefore profit from the difference between the cost to replace the securities and the proceeds received from the sale of the securities. When the Fund makes a short sale, the proceeds it receives from the sale will be held on behalf of a broker until the Fund replaces the borrowed securities. The Fund may have to pay a premium to borrow the securities and must pay any dividends or interest payable on the securities until they are replaced. The Fund’s obligation to replace the securities borrowed in connection with a short sale will be secured by collateral deposited with the broker that consists of cash and/or liquid securities. Short sales involve certain risks and special considerations. If the Fund incorrectly predicts that the price of the borrowed security will decline, the Fund will have to replace the securities with securities with a greater value than the amount received from the sale. As a result, losses from short sales differ from losses that could be incurred from a purchase of a security because losses from short sales may be theoretically unlimited, whereas losses from purchases can equal only the total amount invested.

Derivatives Risk

The Fund’s use of derivatives involves investment risks and transaction costs to which the Fund would not be subject absent the use of these instruments and, accordingly, may result in losses greater than if they had not been used.

Semi Annual Report 2024

173

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

General Risks Associated with Derivatives. Although the Fund does not expect derivatives to represent a significant component of its portfolio initially, the Fund may use derivatives including, in particular, swaps (including, total return swaps), synthetic collateralized loan obligations, reverse repurchase agreements and other similar transactions, in seeking to achieve its investment objective or for other reasons, such as cash management, financing activities or to hedge its positions. Accordingly, derivatives may be used in limited instances as a form of leverage or to seek to enhance returns, including speculation on changes in credit spreads, interest rates or other characteristics of the market, individual securities or groups of securities. If the Fund invests in a derivative, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The use of derivatives may involve substantial leverage. The use of derivatives may subject the Fund to certain risks, including, but not limited to, credit risk, currency risk, leverage risk, liquidity risk, correlation risk, index risk, valuation risk and regulatory risk.

Rule 18f-4 under the 1940 Act permits the Fund to enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the Investment Company Act, among other things, prohibits closed-end funds, including the Fund, from issuing or selling any “senior security” representing indebtedness (unless the fund maintains 300% “asset coverage”) or any senior security representing stock (unless the fund maintains 200% “asset coverage”).

Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination of the foregoing, or any similar instrument, under which the Fund is or may be required to make any payment or delivery of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar financing transactions (e.g., recourse and non-recourse tender option bonds, and borrowed bonds), if the Fund elects to treat these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling securities (e.g., firm and standby commitments, including to-be-announced commitments, and dollar rolls) and non-standard settlement cycle securities, unless the Fund intends to physically settle the transaction and the transaction will settle within 35 days of its trade date.

The Fund is currently relying on the Limited Derivatives User Exception (as defined below) from certain requirements of Rule 18f-4. Absent the availability of the Limited Derivatives User Exception, the Fund would be required to comply with Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a fund to adopt and implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or absolute limit on fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is required to be administered by a “derivatives risk manager,” who is appointed by the fund’s board, including a majority of the directors or trustees who are not “interested persons” of the fund (as defined in the Investment Company Act), and periodically reviews the DRMP and reports to the board.

Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if the Fund’s “derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the “Limited Derivatives User Exception”).

Options and Futures Risk. The Fund may utilize options and futures contracts and so-called “synthetic” options or other derivatives written by broker-dealers or other permissible financial intermediaries. Options transactions may be effected on securities exchanges or in the over-the-counter (“OTC”) market. When options are purchased OTC, the Fund’s portfolio bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and, in such cases, the Fund may have difficulty closing out its position. OTC options also may include options on baskets of specific securities. The Fund may purchase call and put options on specific securities, and may write and sell covered or uncovered call and put options for hedging purposes in pursuing its investment objective. A put option gives the purchaser of the option the right to sell, and obligates the writer to buy, the underlying security at a stated exercise price, typically at any time prior to the expiration of the option. A call option gives the purchaser of the option the right to buy, and obligates the writer to sell, the underlying security at a stated exercise price, typically at any time prior to the expiration of the option. A covered call option is a call option with respect to which the seller of the option owns the underlying security. The sale of a call option exposes the seller during the term of the option to possible loss of opportunity to realize appreciation in the market price of the underlying security or to possible continued holding of a security that might otherwise have been sold to protect against depreciation in the market price of the security. In the sale of a put, losses may be significant and, in the sale of a call, losses can be unlimited.

The Fund may close out a position when writing options by purchasing an option on the same security with the same exercise price and expiration date as the option that it has previously written on the security. In such a case, the Fund will realize a profit or loss if the amount paid to purchase an option is less or more than the amount received from the sale of the option.

174

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Purchasing a futures contract creates an obligation to take delivery of the specific type of financial instrument at a specific future time at a specific price for contracts that require physical delivery, or net payment for cash-settled contracts. Engaging in transactions in futures contracts involves risk of loss to the Fund. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. All terms of futures contracts are set forth in the rules of the exchange on which the futures contracts are traded. Many futures exchanges and boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the daily limit has been reached in a particular contract, no trades may be made that day at a price beyond that limit or trading may be suspended for specified periods during the trading day. Futures contract prices could move to the limit for several consecutive trading days with little or no trading, preventing prompt liquidation of futures positions and potentially subjecting the Fund to substantial losses. Successful use of futures also is subject to the Adviser’s ability to predict correctly the direction of movements in the relevant market, and, to the extent the transaction is entered into for hedging purposes, to determine the appropriate correlation between the transaction being hedged and the price movements of the futures contract.

Swap Agreements Risk. The Fund may enter into swap agreements, including interest rate and index swap agreements, for hedging purposes, as a form of leverage or to seek to obtain a particular desired return at a lower cost to the Fund than if the Fund had invested directly in an instrument yielding the desired return. Swap agreements are often two party contracts entered into primarily by institutional investors for periods ranging from a few days to more than one year. In a typical “swap” transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. Some swaps may be subject to central clearing and exchange trading. Whether the Fund’s use of swap agreements will be successful in furthering its investment objective will depend on the Adviser’s ability to correctly predict whether certain types of investments are likely to produce greater returns than other investments. Because they are two party contracts and because they may have terms of greater than seven days, some swap agreements may be considered by the Fund to be illiquid. Moreover, the Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a bi-lateral swap agreement counterparty. The Fund may seek to reduce this risk to some extent by entering into a transaction only if the counterparty meets the Adviser’s current credit standards for OTC option counterparties. In the case of a cleared swap, the Fund bears the risk that the clearinghouse may default. Swap agreements also bear the risk that the Fund will not be able to meet its payment obligations to the counterparty. Restrictions imposed by the tax rules applicable to regulated investment companies may limit the Fund’s ability to use swap agreements. It is possible that developments in the swap market, including further government regulation, could adversely affect the Fund’s ability to enter into or terminate swap agreements or to realize amounts to be received under these agreements. Swap transactions may involve substantial leverage.

The Fund may enter into credit default swap agreements and similar agreements, and may also buy credit-linked securities. Credit default swaps are often structured with significant leverage and may be considered speculative. The credit default swap agreement or similar instrument may have as reference obligations one or more securities that are not currently held by the Fund. The protection “buyer” in a credit default contract may be obligated to pay the protection “seller” an upfront payment or a periodic stream of payments over the term of the contract provided generally that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the “par value” (full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction. If the Fund is a buyer and no credit event occurs, the Fund recovers nothing if the swap is held through its termination date. However, if a credit event occurs, the Fund may elect to receive the full notional value of the swap in exchange for an equal face amount of deliverable obligations of the reference entity that may have little or no value. As a seller, the Fund generally receives an upfront payment or a fixed rate of income throughout the term of the swap, which typically is between six months and three years, provided that there is no credit event. If a credit event occurs, generally the seller must pay the buyer the full notional value of the swap in exchange for an equal face amount of deliverable obligations of the reference entity that may have little or no value.

Swaptions Risk. The Fund, to the extent permitted under applicable law, may enter into “swaptions”, which are options on swap agreements on either an asset-based or liability-based basis. A swaption is a contract that gives a counterparty the right (but not the obligation) to enter into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at some designated future time on specified terms. The Fund may write (sell) and purchase put and call swaptions. Depending on the terms of the particular option agreement, the Fund generally will incur a greater degree of risk when it writes a swaption than it will incur when it purchases a swaption. When the Fund purchases a swaption, it risks losing only the amount of the premium it has paid should it decide to let the option expire unexercised. When the Fund writes a swaption, upon exercise of the option, the Fund will become obligated according to the terms of the underlying agreement.

Semi Annual Report 2024

175

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Credit-Linked Securities Risk. Among the income producing securities in which the Fund may invest are credit- linked securities, which generally are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order to provide exposure to certain fixed income markets. For instance, the Fund may invest in credit-linked securities as a cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more traditional income producing securities are not available.

Like an investment in a bond, investments in credit-linked securities generally represent the right to receive periodic income payments (in the form of dividends) and payment of principal at the end of the term of the security. However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of payments over the term of the swap agreements provided that no event of default has occurred with respect to the referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt obligation. This, in turn, would reduce the amount of income and principal that the Fund would receive as an investor in the issuer. The Fund’s investments in these instruments are indirectly subject to the risks associated with derivatives, including, among others, credit risk and leverage risk. There may be no established trading market for these securities and they may constitute illiquid investments.

Repurchase Agreements and Reverse Repurchase Agreements Risk

Repurchase agreements carry certain risks not associated with direct investments in securities, including a possible decline in the market value of the underlying obligations. If their value becomes less than the repurchase price, plus any agreed-upon additional amount, the counterparty must provide additional collateral so that at all times the collateral is at least equal to the repurchase price plus any agreed-upon additional amount. The difference between the total amount to be received upon repurchase of the obligations and the price that was paid by the Fund upon acquisition is accrued as interest and included in its net investment income.

Repurchase agreements involving obligations other than U.S. Government securities (such as commercial paper and corporate bonds) may be subject to special risks and may not have the benefit of certain protections in the event of the counterparty’s insolvency. In the event of the bankruptcy or other default of a seller of a repurchase agreement, the Fund could experience both delays in liquidating the underlying securities and losses, including (i) possible decline in the value of the underlying security during the period in which the Fund seeks to enforce its rights thereto; (ii) possible lack of access to income on the underlying security during this period; and (iii) expenses of enforcing its rights.

Reverse repurchase agreements involve the risk that the buyer of the securities sold by the Fund might be unable to deliver them when the Fund seeks to repurchase. In the event that the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the buyer, trustee or receiver may receive an extension of time to determine whether to enforce the Fund’s obligation to repurchase the securities, and the Fund’s use of the proceeds of the reverse repurchase agreement may effectively be restricted pending such decision. If the Fund enters in reverse repurchase agreements and similar financing transactions in reliance on the exemption in Rule 18f-4(d), the Fund may treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to such transactions.

Senior Loans Risk

Although senior loans (“Senior Loans”) are senior and typically secured in a first lien (including “unitranche” loans, which are loans that combine both senior and subordinated debt, generally in a first lien position) or second lien position in contrast to other below investment grade fixed income instruments, which are often subordinated or unsecured, the risks associated with such Senior Loans are generally similar to the risks of other below investment grade fixed income instruments. Investments in below investment grade Senior Loans are considered speculative because of the credit risk of the issuers of debt instruments (each, a “Borrower”). Such Borrowers are more likely than investment grade Borrowers to default on their payments of interest and principal owed to the Fund, and such defaults could reduce the net asset value of the Fund and income distributions. An economic downturn would generally lead to a higher non-payment rate, and a Senior Loan may lose significant market value before a default occurs. Moreover, any specific collateral used to secure a Senior Loan may decline in value or become illiquid, which could adversely affect the Senior Loan’s value.

176

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Senior Loans are subject to the risk of non-payment of scheduled interest or principal. Such non-payment would result in a reduction of income to the Fund, a reduction in the value of the investment and a potential decrease in the net asset value of the Fund. There can be no assurance that the liquidation of any collateral securing a Senior Loan would satisfy the Borrower’s obligation in the event of nonpayment of scheduled interest or principal payments, whether when due or upon acceleration, or that the collateral could be liquidated, readily or otherwise. In the event of bankruptcy or insolvency of a Borrower, the Fund could experience delays or limitations with respect to its ability to realize the benefits of the collateral, if any, securing a Senior Loan. The collateral securing a Senior Loan, if any, may lose all or substantially all of its value in the event of the bankruptcy or insolvency of a Borrower. Some Senior Loans are subject to the risk that a court, pursuant to fraudulent conveyance or other similar laws, could subordinate such Senior Loans to presently existing or future indebtedness of the Borrower or take other action detrimental to the holders of Senior Loans including, in certain circumstances, invalidating such Senior Loans or causing interest previously paid to be refunded to the Borrower. Additionally, a Senior Loan may be “primed” in bankruptcy, which reduces the ability of the holders of the Senior Loan to recover on the collateral.

There may be less readily available information about most Senior Loans and the Borrowers thereunder than is the case for many other types of securities, including securities issued in transactions registered under the Securities Act of 1933, as amended (the “Securities Act”), or the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Borrowers subject to the periodic reporting requirements of Section 13 of the Exchange Act. Senior Loans may be issued by companies that are not subject to SEC reporting requirements and these companies, therefore, do not file reports with the SEC that must comply with SEC form requirements and, in addition, are subject to a less stringent liability disclosure regime than companies subject to SEC reporting requirements. As a result, the Adviser will rely primarily on its own evaluation of a Borrower’s credit quality rather than on any available independent sources. Consequently, the Fund will be particularly dependent on the analytical abilities of the Adviser. In certain circumstances, Senior Loans may not be deemed to be securities under certain federal securities laws, other than the Investment Company Act. Therefore, in the event of fraud or misrepresentation by a Borrower or an arranger, the Fund may not have the protection of the anti-fraud provisions of the federal securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would rely on the contractual provisions in the Senior Loan agreement itself and common law fraud protections under applicable state law.

The secondary trading market for Senior Loans may be less liquid than the secondary trading market for registered investment grade debt securities. No active trading market may exist for certain Senior Loans, which may make it difficult to value them. Illiquidity and adverse market conditions may mean that the Fund may not be able to sell Senior Loans quickly or at a fair price. To the extent that a secondary market does exist for certain Senior Loans, the market for them may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods.

Senior Loans are subject to legislative risk. If legislation or state or federal regulations impose additional requirements or restrictions on the ability of financial institutions to make loans, the availability of Senior Loans for investment by the Fund may be adversely affected. In addition, such requirements or restrictions could reduce or eliminate sources of financing for certain Borrowers. This would increase the risk of default. If legislation or federal or state regulations require financial institutions to increase their capital requirements this may cause financial institutions to dispose of Senior Loans that are considered highly levered transactions. If the Fund attempts to sell a Senior Loan at a time when a financial institution is engaging in such a sale, the price the Fund could receive for the Senior Loan may be adversely affected.

Subordinated Loans Risk

Although the Fund does not expect Subordinated Loans to be a significant component of its portfolio, it may invest in such instruments from time to time. Subordinated loans generally are subject to similar risks as those associated with investments in Senior Loans, except that such loans are subordinated in payment and/or lower in lien priority to first lien holders. In the event of default on a Subordinated Loan, the first priority lien holder has first claim to the underlying collateral of the loan to the extent such claim is secured. Additionally, an over secured creditor may be entitled to additional interest and other charges in bankruptcy increasing the amount of their allowed claim. Subordinated Loans are subject to the additional risk that the cash flow of the Borrower and property securing the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior obligations of the Borrower. This risk is generally higher for subordinated unsecured loans or debt, which are not backed by a security interest in any specific collateral. Subordinated Loans generally have greater price volatility than Senior Loans and may be less liquid.

Semi Annual Report 2024

177

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Corporate Bonds Risk

The market value of a corporate bond generally may be expected to rise and fall inversely with interest rates. The market value of intermediate- and longer-term corporate bonds is generally more sensitive to changes in interest rates than is the market value of shorter-term corporate bonds. The market value of a corporate bond also may be affected by factors directly related to the Borrower, such as investors’ perceptions of the creditworthiness of the Borrower, the Borrower’s financial performance, perceptions of the Borrower in the marketplace, performance of management of the Borrower, the Borrower’s capital structure and use of financial leverage and demand for the Borrower’s goods and services. There is a risk that the Borrowers of corporate bonds may not be able to meet their obligations on interest or principal payments at the time called for by an instrument. High yield corporate bonds are often high risk and have speculative characteristics. High yield corporate bonds may be particularly susceptible to adverse Borrower-specific developments.

CLO Securities Risk

CLOs issue securities in tranches with different payment characteristics and different credit ratings. The rated tranches of securities issued by CLOs (“CLO Securities”) are generally assigned credit ratings by one or more nationally recognized statistical rating organizations. The subordinated (or residual) tranches are the most junior tranches and do not receive ratings. Below investment grade tranches of CLO Securities typically experience a lower recovery, greater risk of loss or deferral or non-payment of interest than more senior tranches of the CLO.

The riskiest portion of the capital structure of a CLO is the subordinated (or residual) tranche, which bears the bulk of defaults from the loans in the CLO and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Since it is partially protected from defaults, a senior tranche from a CLO typically has higher ratings and lower yields than the underlying securities, and can be rated investment grade. Despite the protection from the subordinated tranche, CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults and aversion to CLO Securities as a class. The risks of an investment in a CLO depend largely on the collateral and the tranche of the CLO in which the Fund invests.

The CLOs in which the Fund invests may have issued and sold debt tranches that will rank senior to the tranches in which the Fund invests. By their terms, such more senior tranches may entitle the holders to receive payment of interest or principal on or before the dates on which the Fund is entitled to receive payments with respect to the tranches in which the Fund invests.

Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a CLO, holders of more senior tranches would typically be entitled to receive payment in full before the Fund receives any distribution. After repaying such senior creditors, such CLO may not have any remaining assets to use for repaying its obligation to the Fund. In the case of tranches ranking equally with the tranches in which the Fund invests, the Fund would have to share on an equal basis any distributions with other creditors holding such securities in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant CLO. Therefore, the Fund may not receive back the full amount of its investment in a CLO.

The transaction documents relating to the issuance of CLO Securities may impose eligibility criteria on the assets of the CLO, restrict the ability of the CLO’s investment manager to trade investments and impose certain portfolio-wide asset quality requirements. These criteria, restrictions and requirements may limit the ability of the CLO’s investment manager to maximize returns on the CLO Securities. In addition, other parties involved in CLOs, such as third-party credit enhancers and investors in the rated tranches, may impose requirements that have an adverse effect on the returns of the various tranches of CLO Securities. Furthermore, CLO Securities issuance transaction documents generally contain provisions that, in the event that certain tests are not met (generally interest coverage and over-collateralization tests at varying levels in the capital structure), proceeds that would otherwise be distributed to holders of a junior tranche must be diverted to pay down the senior tranches until such tests are satisfied. Failure (or increased likelihood of failure) of a CLO to make timely payments on a particular tranche will have an adverse effect on the liquidity and market value of such tranche.

Payments to holders of CLO Securities may be subject to deferral. If cash flows generated by the underlying assets are insufficient to make all current and, if applicable, deferred payments on CLO Securities, no other assets will be available for payment of the deficiency and, following realization of the underlying assets, the obligations of the Borrower of the related CLO Securities to pay such deficiency will be extinguished.

178

Semi Annual Report 2024

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

The market value of CLO Securities may be affected by, among other things, changes in the market value of the underlying assets held by the CLO, changes in the distributions on the underlying assets, defaults and recoveries on the underlying assets, capital gains and losses on the underlying assets, prepayments on underlying assets and the availability, prices and interest rate of underlying assets. Furthermore, the leveraged nature of each subordinated class may magnify the adverse impact on such class of changes in the value of the assets, changes in the distributions on the assets, defaults and recoveries on the assets, capital gains and losses on the assets, prepayment on assets and availability, price and interest rates of assets. Finally, CLO Securities are limited recourse and may not be paid in full and may be subject to up to 100% loss.

Asset-Backed Securities Risk

Asset-backed securities often involve risks that are different from or more acute than risks associated with other types of debt instruments. For instance, asset-backed securities may be particularly sensitive to changes in prevailing interest rates. In addition, the underlying assets are subject to prepayments that shorten the securities’ weighted average maturity and may lower their return. Asset-backed securities are also subject to risks associated with their structure and the nature of the assets underlying the security and the servicing of those assets. Payment of interest and repayment of principal on asset-backed securities is largely dependent upon the cash flows generated by the assets backing the securities and, in certain cases, supported by letters of credit, surety bonds or other credit enhancements. The values of asset-backed securities may be substantially dependent on the servicing of the underlying asset pools, and are therefore subject to risks associated with the negligence by, or defalcation of, their servicers. Furthermore, debtors may be entitled to the protection of a number of state and federal consumer credit laws with respect to the assets underlying these securities, which may give the debtor the right to avoid or reduce payment. In addition, due to their often complicated structures, various asset-backed securities may be difficult to value and may constitute illiquid investments. The liquidity of asset-backed securities (particularly below investment grade asset-backed securities) may change over time. During periods of deteriorating economic conditions, such as recessions, or periods of rising unemployment, delinquencies and losses generally increase, sometimes dramatically, with respect to securitizations involving loans, sales contracts, receivables and other obligations underlying asset-backed securities. If many Borrowers on the underlying loans default, losses could exceed the credit enhancement level and result in losses to investors in asset-backed securities.

“Covenant-Lite” Loans Risk

Some of the loans in which the Fund may invest directly or indirectly through its investments in collateralized debt obligations, CLOs or other types of structured securities may be “covenant-lite” loans, which means the loans contain fewer maintenance covenants than other loans (in some cases, none) and do not include terms which allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached. An investment by the Fund in a covenant-lite loan may potentially hinder the ability to reprice credit risk associated with the issuer and reduce the ability to restructure a problematic loan and mitigate potential loss. The Fund may also experience delays in enforcing its rights on its holdings of covenant-lite loans. As a result of these risks, the Fund’s exposure to losses may be increased, which could result in an adverse impact on the Fund’s net income and net asset value.

Investment and Market Risk

An investment in the common shares of the Fund is subject to investment risk, including the possible loss of the entire principal amount invested. An investment in the common shares of the Fund represents an indirect investment in the portfolio of Senior Loans, Corporate Bonds, CLO Securities and other securities and loans owned by the Fund, and the value of these securities and loans may fluctuate, sometimes rapidly and unpredictably. For instance, during periods of global economic downturn, the secondary markets for Senior Loans and investments with similar economic characteristics (such as second lien loans and unsecured loans) and Corporate Bonds may experience sudden and sharp price swings, which can be exacerbated by large or sustained sales by major investors in these markets, a high-profile default by a major Borrower, movements in indices tied to these markets or related securities or investments, or a change in the market’s perception of Senior Loans and investments with similar economic characteristics (such as second lien loans and unsecured loans) and Corporate Bonds. At any point in time, an investment in the common shares of the Fund may be worth less than the original amount invested, even after taking into account distributions paid by the Fund, if any, and the ability of common shareholders to reinvest dividends. The Fund intends to continue to utilize leverage, which will magnify the Fund’s risks and, in turn, the risks to the common shareholders.

Market Disruption and Geopolitical Risk

U.S. and global markets recently have experienced increased volatility, which could be harmful to the Fund and issuers in which it invests. Such volatility may result in, amongst other things, write-offs, the re-pricing of credit risk or worsening general economic conditions, any of which could materially and adversely impact the broader financial and credit markets and reduce the availability of debt and equity capital for the market as a whole and financial services firms in particular. Continued market volatility and uncertainty and/or a downturn in market and economic and financial conditions, as a result of developments in the banking industry or otherwise (including as a result of delayed access to cash or credit facilities), could have an adverse impact on the Fund and issuers in which it invests.

Semi Annual Report 2024

179

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Various social and political circumstances in the U.S. and around the world (including wars and other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics or outbreaks of infectious diseases), may also contribute to increased market volatility and economic uncertainties or deterioration in the U.S. and worldwide. Such events, including trade tensions between the United States and China, other uncertainties regarding actual and potential shifts in U.S. and foreign, trade, economic and other policies with other countries, the Russia-Ukraine war and more recently the Israel-Hamas war and health epidemics and pandemics, could adversely affect our business, financial condition or results of operations. These market and economic disruptions could negatively impact the operating results of our portfolio companies.

Interest Rate Risk

The market value of Corporate Bonds and other fixed-income securities changes in response to interest rate changes and other factors. In an effort to combat inflation, the U.S. Federal Reserve (the “Federal Reserve”) increased the federal funds rate in 2023. Although the Federal Reserve left its benchmark rates steady in the fourth quarter of 2023, it has indicated that additional rate increases in the future may be necessary to mitigate inflationary pressures and there can be no assurance that the Federal Reserve will not make upwards adjustments to the federal funds rate in the future. However, there are reports that the Federal Reserve may begin to cut the benchmark rates in 2024. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as rates rise. Accordingly, an increase in market interest rates may cause a decrease in the price of a debt security and, therefore, a decline in the net asset value of the Fund’s common shares. The magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those securities with longer maturities. Because Senior Loans with floating or variable rates reset their interest rates only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the net asset value of the Fund’s common shares. In addition, Senior Loans or similar loans or securities may allow the Borrower to opt between SOFR-based interest rates and interest rates based on bank prime rates, which may have an effect on the net asset value of the Fund’s common shares.

If general interest rates rise, as they have in recent years, there is a risk that the portfolio companies in which the Fund holds floating rate securities will be unable to pay escalating interest amounts, which could result in a default under their loan documents. Rising interest rates could also cause portfolio companies to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business and operations and could, over time, lead to increased defaults. In addition, rising interest rates may increase pressure on the Fund to provide fixed rate loans to the Fund’s portfolio companies, which could adversely affect the Fund’s net investment income, as increases in the cost of borrowed funds would not be accompanied by increased interest income from such fixed-rate investments.

Liquidity Risk

The Fund may not be able to readily dispose of illiquid securities or loans at prices that approximate those at which the Fund could sell the securities or loans if they were more widely traded and, as a result of that illiquidity, the Fund may have to sell other investments or engage in borrowing transactions if necessary to raise cash to meet its obligations. Limited liquidity can also affect the market price of securities, thereby adversely affecting the net asset value of the common shares and ability to make dividend distributions. The Fund’s investments may not be readily marketable and may be subject to restrictions on resale. Generally, the Fund’s investments are not listed on any national securities exchange and no active trading market may exist. When a secondary market exists, the market may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. Further, the lack of an established secondary market for illiquid securities may make it more difficult to value such securities, which may negatively affect the price the Fund would receive upon disposition of such securities.

Duration and Maturity Risk

The Fund has no fixed policy regarding portfolio maturity or duration. Holding long duration and long maturity investments will expose the Fund to certain additional risks.

When interest rates rise, certain obligations will be paid off by the Borrower more slowly than anticipated, causing the value of these obligations to fall. Rising interest rates tend to extend the duration of securities, making them more sensitive to changes in interest rates. The value of longer-term securities generally changes more in response to changes in interest rates than shorter-term securities. As a result, in a period of rising interest rates, such as in recent years, securities may exhibit additional volatility and may lose value.

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Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

When interest rates fall, certain obligations will be paid off by the Borrower more quickly than originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields. In periods of falling interest rates, the rate of prepayments tends to increase (as does price fluctuation) as Borrowers are motivated to pay off debt and refinance at new lower rates. During such periods, reinvestment of the prepayment proceeds by the Adviser will generally be at lower rates of return than the return on the assets that were prepaid. Prepayment reduces the yield to maturity and the average life of the security.

Special Situations and Stressed Investments Risk

Although investments in debt and equity securities and other obligations of companies that may be involved in significant financial or business distress, including companies involved in, or that have recently completed, bankruptcy or other reorganization and liquidation proceedings (“Stressed Issuers”) (such investments, “Special Situation Investments”) may result in significant returns for the Fund, they are speculative and involve a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful investment in distressed assets is unusually high. Therefore, the Fund will be particularly dependent on the analytical abilities of the Adviser. In any reorganization or liquidation proceeding relating to a company in which the Fund invests, the Fund may lose its entire investment, may be required to accept cash or securities with a value less than the Fund’s original investment and/or may be required to accept payment over an extended period of time. Among the risks inherent in investments in a troubled company is that it may be difficult to obtain information as to the true financial condition of such company. Troubled company investments and other distressed asset- based investments require active monitoring.

The Fund may make investments in Stressed Issuers when the Adviser believes it is reasonably likely that the Stressed Issuer will make an exchange offer or will be the subject to a plan of reorganization pursuant to which the Fund will receive new securities in return for a Special Situation Investment. There can be no assurance, however, that such an exchange offer will be made or that such a plan of reorganization will be adopted. In addition, a significant period of time may pass between the time at which the Fund makes its investment in the Special Situation Investment and the time that any such exchange offer or plan of reorganization is completed, if at all. During this period, it is unlikely that the Fund would receive any interest payments on the Special Situation Investment, the Fund would be subject to significant uncertainty whether the exchange offer or plan of reorganization will be completed and the Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the extent the Fund seeks capital appreciation through investment in Special Situation Investments, the Fund’s ability to achieve current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to when, in what manner and for what value the obligations evidenced by Special Situation Investments will eventually be satisfied (e.g., through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the Special Situation Investments or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is made or plan of reorganization is adopted with respect to Special Situation Investments held by the Fund, there can be no assurance that the securities or other assets received by the Fund in connection with such exchange offer or plan of reorganization will not have a lower value or income potential than may have been anticipated when the investment was made or even no value. Moreover, any securities received by the Fund upon completion of an exchange offer or plan of reorganization may be restricted as to resale. Similarly, if the Fund participates in negotiations with respect to any exchange offer or plan of reorganization with respect to an issuer of Special Situation Investments, the Fund may be restricted from disposing of such securities. To the extent that the Fund becomes involved in such proceedings, the Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor.

To the extent that the Fund holds interests in a Stressed Issuer that are different (or more senior or junior) than those held by other funds and/or accounts managed by the Adviser or its affiliates (“Other Accounts”), the Adviser is likely to be presented with decisions involving circumstances where the interests of such Other Accounts may be in conflict with the Fund’s interests. Furthermore, it is possible that the Fund’s interest may be subordinated or otherwise adversely affected by virtue of such Other Accounts’ involvement and actions relating to their investment. In addition, when the Fund and Other Accounts hold investments in the same Stressed Issuer (including in the same level of the capital structure), the Fund may be prohibited by applicable law from participating in restructurings, work-outs, renegotiations or other activities related to its investment in the Stressed Issuer absent an exemption due to the fact that Other Accounts hold investments in the same Stressed Issuer. As a result, the Fund may not be permitted by law to make the same investment decisions as Other Accounts in the same or similar situations even if the Adviser believes it would be in the Fund’s best economic interests to do so. Also, the Fund may be prohibited by applicable law from investing in a Stressed Issuer (or an affiliate) that Other Accounts are also investing in or currently invest in even if the Adviser believes it would be in the best economic interests of the Fund to do so. Furthermore, entering into certain transactions that are not deemed prohibited by law when made may potentially lead to a condition that raises regulatory or legal concerns in the future. This may be the case, for example, with Stressed Issuers who are near default and more likely to enter into restructuring or work-out transactions with their existing debt holders, which may include the Fund and its affiliates. In some cases, to avoid the potential of future prohibited transactions, the Adviser may avoid recommending allocating an investment opportunity to the Fund that it would otherwise recommend, subject to the Adviser’s then-current allocation policy and any applicable exemptions.

Semi Annual Report 2024

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CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

The Fund may also invest in companies in expectation of a specific event or catalyst, which may be external (e.g., a macroeconomic event impacting relevant markets) or an event that is specific to the company (e.g., a Chapter 11 filing). Such event-driven investing requires the Fund to make judgments concerning (i) the likelihood that an event will occur; and (ii) the impact such event will have on the value of the Fund’s investment in the relevant company. If the event fails to occur or it does not have the effect foreseen, significant losses can result.

Below Investment Grade Rating Risk

Debt instruments that are rated below investment grade are often referred to as “high yield” securities or “junk bonds.” Below investment grade instruments are rated “Ba1” or lower by Moody’s, “BB+” or lower by S&P or “BB+” or lower by Fitch or, if unrated, are judged by the Adviser to be of comparable credit quality. While generally providing greater income and opportunity for gain, below investment grade debt instruments may be subject to greater risks than securities or instruments that have higher credit ratings, including a higher risk of default. The credit rating of an instrument that is rated below investment grade does not necessarily address its market value risk, and ratings may from time to time change, positively or negatively, to reflect developments regarding the Borrower’s financial condition. Below investment grade instruments often are considered to be speculative with respect to the capacity of the Borrower to timely repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit risk than higher rated securities. Lower grade securities and similar debt instruments may be particularly susceptible to economic downturns. It is likely that a prolonged or deepening economic recession could adversely affect the ability of some Borrowers issuing such debt instruments to repay principal and pay interest on the instrument, increase the incidence of default and severely disrupt the market value of the securities and similar debt instruments.

The secondary market for below investment grade instruments may be less liquid than that for higher rated instruments. Because unrated securities may not have an active trading market or may be difficult to value, the Fund might have difficulty selling them promptly at an acceptable price. To the extent that the Fund invests in unrated securities, the Fund’s ability to achieve its investment objective will be more dependent on the Adviser’s credit analysis than would be the case when the Fund invests in rated securities.

Under normal market conditions, the Fund will invest in debt instruments rated in the lower rating categories (“Caa1” or lower by Moody’s, “CCC+” or lower by S&P or “CCC+” or lower by Fitch) or unrated and of comparable quality. For these securities, the risks associated with below investment grade instruments are more pronounced. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings. In any reorganization or liquidation proceeding relating to an investment, the Fund may lose its entire investment or may be required to accept cash or securities with a value substantially less than its original investment.

European Risk

The Fund may invest a portion of its capital in debt securities issued by issuers domiciled in Europe, including issuers domiciled in the United Kingdom (the “UK”). Concerns regarding the sovereign debt of various Eurozone countries and proposals for investors to incur substantial write-downs and reductions in the face value of the sovereign debt of certain countries give rise to concerns about sovereign defaults, the possibility that one or more countries might leave the European Union (the “EU”) or the Eurozone and various proposals (still under consideration and unclear in material respects) for support of affected countries and the Euro as a currency. The outcome of any such situation cannot be predicted. Sovereign debt defaults and EU and/or Eurozone exits could have material adverse effects on investments by the Fund in securities of European companies, including but not limited to the availability of credit to support such companies’ financing needs, uncertainty and disruption in relation to financing, customer and supply contracts denominated in Euro and wider economic disruption in markets served by those companies, while austerity and other measures that have been introduced in order to limit or contain these issues may themselves lead to economic contraction and resulting adverse effects for the Fund. A number of the Fund’s securities may be denominated in the Euro. Legal uncertainty about the funding of Euro denominated obligations following any breakup or exits from the Eurozone (particularly in the case of investments in securities of companies in affected countries) could also have material adverse effects on the Fund. In connection with investments in non-U.S. issuers, the Fund may engage in foreign currency exchange transactions but is not required to hedge its currency exposure. As such, the Fund may make investments that are denominated in British pound sterling or Euros. The Fund’s assets are valued in U.S. dollars and the depreciation of the British pound sterling and/or the Euro in relation to the U.S. dollar could adversely affect the Fund’s investments denominated in British pound sterling or Euros that are not fully hedged regardless of the performance of the underlying issuer. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries as well as acts of war in the region. These events, resulting sanctions and resulting future market disruptions in the region are impossible to predict, but have been, and may continue to be, significant and have a severe adverse effect on the region, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors and may affect the value and liquidity of certain of the Fund’s investments.

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CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

Litigation Risk

The Fund as well as the Adviser, the Sub-Adviser and its affiliates participate in a highly regulated industry and are each subject to regulatory examinations in the ordinary course of business. There can be no assurance that the Fund, its executive officers, trustees, and the Adviser, the Sub-Adviser, their affiliates and/or any of their respective principals and employees will avoid regulatory investigation and possible enforcement actions stemming therefrom. The Adviser and the Sub-Adviser are each registered investment advisers and, as such, subject to the provisions of the Advisers Act. The Fund the Adviser and the Sub-Adviser may each be, from time to time, subject to formal and informal examinations, investigations, inquiries, audits and reviews from numerous regulatory authorities both in response to issues and questions raised in such examinations or investigations and in connection with the changing priorities of the applicable regulatory authorities across the market in general.

The Fund, its executive officers, trustees, and the Adviser, the Sub-Adviser and their affiliates and/or any of their respective principals and employees could also be named as defendants in, or otherwise become involved in, litigation. Litigation and regulatory actions can be time-consuming and expensive and can lead to unexpected losses, which expenses and losses are often subject to indemnification by us. Legal proceedings could continue without resolution for long periods of time and their outcomes, which could materially and adversely affect the value of us or the ability of the Adviser or the Sub-Adviser to manage the Fund, are often impossible to anticipate. The Adviser or the Sub-Adviser would likely be required to expend significant resources responding to any litigation or regulatory action related to it, and these actions could be a distraction to the activities of the Adviser or the Sub-Adviser, as applicable.

The Fund’s investment activities are subject to the normal risks of becoming involved in litigation by third parties. The expense of defending against claims by third parties and paying any amounts pursuant to settlements or judgments would, absent willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved by the Adviser, Sub- Adviser, administrator, or any of our officers, be borne by the Fund and would reduce the Fund’s net assets. The Adviser, the Sub-Adviser and others are indemnified by the Fund in connection with such litigation, subject to certain conditions.

(12) Subsequent Events

The Adviser has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure or would be required to be recognized in the consolidated financial statements as of and for the six months ended June 30, 2024, except as discussed below:

On July 31, 2024, the Fund and the Fund’s consolidated subsidiary, CADEX Liquid Financing LLC (“Financing Sub 2”) entered into the Revolving Credit and Security Agreement (the “BNP Credit Facility”) with Financing Sub 2, as the borrower, and BNP Paribas, as the administrative agent and lender, that allows Financing Sub 2 to borrow up to $400,000 at any one time outstanding. The BNP Credit Facility is secured by all of the assets held by Financing Sub 2, including certain loans (the “Loans”) to be contributed by the Fund to Financing Sub 2 from time to time. Under the terms of the BNP Credit Facility, the Fund and Financing Sub 2, as applicable, have made representations and warranties regarding the Loans, as well as their businesses, and are required to comply with various covenants, servicing procedures, limitations on disposition of Loans, reporting requirements and other customary requirements for similar revolving funding facilities. The BNP Credit Facility includes usual and customary events of default for revolving funding facilities of this nature. The end of the reinvestment period and the stated maturity date for the BNP Credit Facility are July 31, 2027 and July 31, 2028, respectively. The interest rate charged on the BNP Credit Facility is based on an applicable SOFR (as defined in the documents governing the BNP Credit Facility) plus a margin of (i) 1.60% during the reinvestment period and (ii) 2.60% following the reinvestment period. In addition, Financing Sub 2 is required to pay a commitment fee of between 0.35% and 0.70% depending on the size of the unused portion of the BNP Credit Facility.

Semi Annual Report 2024

183

CION Ares Diversified Credit Fund

Notes to Consolidated Financial Statements (continued)

June 30, 2024 (Unaudited)

(in thousands, except per share data, percentages and as otherwise noted)

On July 31, 2024, the Fund entered into an agreement to amend the State Street Credit Facility. The amendment, among other things, (a) reduced the total commitment under the State Street Credit Facility from $400,000 to $300,000, (b) extended the stated maturity date from August 25, 2024 to July 31, 2026 and (c) adjusted the interest rate charged on the State Street Credit Facility from an applicable SOFR plus a credit spread adjustment of 0.10% (as defined in the documents governing the State Street Credit Facility) plus an applicable spread of 1.00% to an applicable SOFR plus an applicable spread of 1.25%.

The following common share distributions were declared for July and August 2024.

Class A

Class C

Class I

Class L

Class U

Class U-2

Class W

July 2024

Record Date

Daily

Payable Date

July 31, 2024

Monthly Per Share Amount

0.19039890

0.17334580

0.19773970

0.18574580

0.18073930

0.18054400

0.18715320

August 2024

Record Date

Daily

Payable Date

August 31, 2024

Monthly Per Share Amount

0.19039890

0.17334580

0.19773970

0.18574580

0.18073930

0.18054400

0.18715320

184

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CION Ares Diversified Credit Fund

Additional Information

June 30, 2024 (Unaudited)

Proxy Information

The policies and procedures used to determine how to vote proxies relating to securities held by the Fund are available (1) without charge, upon request, by calling 1-877-855-3434, or (2) on the SEC’s website at http://www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 will be available on Form N-PX by August 31 of each year (1) without charge, upon request, by calling 1-877-855-3434, or (2) on the SEC’s website at http://www.sec.gov.

Portfolio Information

The Fund files its complete schedule of portfolio holdings for the first quarter and the third quarter of each fiscal year on SEC Form N-PORT. The Fund’s Form N-PORT reports are available (1) without charge, upon request, by calling 1-877-855-3434; or (2) on the SEC’s website at http://www.sec.gov.

Semi Annual Report 2024

185

CION Ares Diversified Credit Fund

Additional Information (continued)

June 30, 2024 (Unaudited)

Dividend Reinvestment Plan

The Fund operates under a dividend reinvestment plan, (the “DRIP”) administered by SS&C GIDS, Inc. (“SS&C GIDS”). Pursuant to the plan, the Fund’s distributions, net of any applicable U.S. withholding tax, are reinvested in the same class of shares of the Fund.

Shareholders automatically participate in the DRIP, unless and until an election is made to withdraw from the plan on behalf of such participating shareholder. A shareholder who does not wish to have distributions automatically reinvested may terminate participation in the DRIP at any time by written instructions to that effect to SS&C GIDS. Shareholders who elect not to participate in the DRIP will receive all distributions in cash paid to the shareholder of record (or, if the shares are held in street or other nominee name, then to such nominee). Such written instructions must be received by the SS&C GIDS 30 days prior to the record date of the distribution or the shareholder will receive such distribution in shares through the DRIP. Under the DRIP, the Fund’s distributions to shareholders are automatically reinvested in full and fractional shares as described below.

When the Fund declares a distribution, SS&C GIDS, on the shareholder’s behalf, will receive additional authorized shares from the Fund either newly issued or repurchased from shareholders by the Fund and held as treasury stock. The number of shares to be received when distributions are reinvested will be determined by dividing the amount of the distribution by the Fund’s net asset value per share.

SS&C GIDS will maintain all shareholder accounts and furnish written confirmations of all transactions in the accounts, including information needed by shareholders for personal and tax records. SS&C GIDS will hold shares in the account of the shareholders in non-certificated form in the name of the participant, and each shareholder’s proxy, if any, will include those shares purchased pursuant to the DRIP. Each participant, nevertheless, has the right to request certificates for whole and fractional shares owned. The Fund will issue certificates in its sole discretion. SS&C GIDS will distribute all proxy solicitation materials, if any, to participating shareholders.

In the case of shareholders, such as banks, brokers or nominees, that hold shares for others who are beneficial owners participating under the DRIP, SS&C GIDS will administer the DRIP on the basis of the number of shares certified from time to time by the record shareholder as representing the total amount of shares registered in the shareholder’s name and held for the account of beneficial owners participating under the DRIP.

Neither SS&C GIDS nor the Fund shall have any responsibility or liability beyond the exercise of ordinary care for any action taken or omitted pursuant to the DRIP, nor shall they have any duties, responsibilities or liabilities except such as expressly set forth herein. Neither shall they be liable hereunder for any act done in good faith or for any good faith omissions to act, including, without limitation, failure to terminate a participant’s account prior to receipt of written notice of his or her death or with respect to prices at which shares are purchased or sold for the participants account and the terms on which such purchases and sales are made, subject to applicable provisions of the federal securities laws.

The automatic reinvestment of dividends will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. The Fund reserves the right to amend or terminate the DRIP. There is no direct service charge to participants with regard to purchases under the DRIP; however, the Fund reserves the right to amend the DRIP to include a service charge payable by the participants.

All correspondence concerning the DRIP should be directed to SS&C GIDS at CION Ares Diversified Credit Fund c/o SS&C GIDS, Inc., P.O. Box 219422, Kansas City, MO 64121-9422. Certain transactions can be performed by calling the toll free number 888-729-4266.

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CION Ares Diversified Credit Fund

Additional Information (continued)

June 30, 2024 (Unaudited)

Plan of Distribution

ALPS Distributors, Inc. located at 1290 Broadway, Suite 1100, Denver, CO 80203, serves as the Fund’s principal underwriter and acts as the Distributor of the Fund’s shares on a best efforts basis, subject to various conditions. The Fund’s shares are offered for sale through the Distributor at net asset value plus the applicable sales load. The Distributor also may enter into agreements with financial intermediaries for the sale and servicing of the Fund’s shares. In reliance on Rule 415 of the Securities Act, the Fund intends to offer to sell an unlimited number of common shares, on a continual basis, through the Distributor. No arrangement has been made to place funds received in an escrow, trust or similar account. The Distributor is not required to sell any specific number or dollar amount of the Fund’s shares, but will use its best efforts to solicit orders for the purchase of the shares. Shares of the Fund will not be listed on any national securities exchange and the Distributor will not act as a market marker in Fund shares.

The Distributor has entered into a wholesale marketing agreement with CION Securities, a registered broker-dealer and an affiliate of CION. Pursuant to the terms of the wholesale marketing agreement, CION Securities will seek to market and otherwise promote the Fund through various wholesale distribution channels, including regional and independent retail broker-dealers and registered investment advisers.

CION Securities has also entered into a dealer manager agreement with the Fund pursuant to which CION Securities has agreed to provide certain marketing and wholesale services in consideration of its receipt of the dealer manager fee.

The Adviser or its affiliates, in the Adviser’s discretion and from their own resources, may pay additional compensation to financial intermediaries in connection with the sale of the Fund’s shares. In return for the additional compensation, the Fund may receive certain marketing advantages including access to a financial intermediaries’ registered representatives, placement on a list of investment options offered by a financial intermediary, or the ability to assist in training and educating the financial intermediaries. The additional compensation may differ among financial intermediaries in amount or in the manner of calculation: payments of additional compensation may be fixed dollar amounts, or based on the aggregate value of outstanding shares held by shareholders introduced by the financial intermediary, or determined in some other manner. The receipt of additional compensation by a selling financial intermediary may create potential conflicts of interest between an investor and its financial intermediary who is recommending the Fund over other potential investments. Additionally, the Fund pays a servicing fee to the financial intermediaries or financial institution for providing ongoing services in respect of clients holding shares of the Fund. Such services may include electronic processing of client orders, electronic fund transfers between clients and the Fund, account reconciliations with the Fund’s transfer agent, facilitation of electronic delivery to clients of Fund documentation, monitoring client accounts for back-up withholding and any other special tax reporting obligations, maintenance of books and records with respect to the foregoing, and such other information and ongoing liaison services as the Fund or the Adviser may reasonably request.

The Fund and the Adviser have agreed to indemnify the Distributor against certain liabilities, including liabilities under the Securities Act, or to contribute to payments the Distributor may be required to make because of any of those liabilities. Such agreement does not include indemnification of the Distributor against liability resulting from willful misfeasance, bad faith or negligence on the part of the Distributor in the performance of its duties or from reckless disregard by the Distributor of its obligations and duties under the Distribution Agreement.

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187

CION Ares Diversified Credit Fund

Additional Information (continued)

June 30, 2024 (Unaudited)

Investment Adviser

CION Ares Management, LLC

100 Park Avenue, 25th Floor,

New York, NY 10017

Administrator

ALPS Fund Services, Inc.

1290 Broadway, Suite 1100

Denver, CO 80203

Custodian

State Street Bank and Trust Company

One Congress Street

Boston, Massachusetts 02114

Transfer Agent and DRIP Administrator

SS&C GIDS, Inc.

333 W 11th Street

Kansas City, MO 64105

Distributor

ALPS Distributors, Inc.

1290 Broadway, Suite 1100

Denver, CO 80203

Independent Registered Public Accounting Firm

Ernst & Young LLP

725 S. Figueroa Street

Los Angeles, CA 90017

Fund Counsel

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

188

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Additional Information (continued)

June 30, 2024 (Unaudited)

Privacy Notice

We are committed to maintaining the privacy of our shareholders and to safeguarding their nonpublic personal information. The following information is provided to help you understand what personal information we collect, how we protect that information and why, in certain cases, we may share information with select other parties.

Generally, we will not receive any non-public personal information about shareholders of the common shares of the Fund, although certain of our shareholders’ non-public information may become available to us. The non-public personal information that we may receive falls into the following categories:

●	Information we receive from shareholders, whether we receive it orally, in writing or electronically. This includes shareholders’ communications to us concerning their investment;
●	Information about shareholders’ transactions and history with us; or
●	Other general information that we may obtain about shareholders, such as demographic and contact information such as address.
●	We do not disclose any non-public personal information about shareholders, except:
●	to our affiliates (such as our investment adviser) and their employees that have a legitimate business need for the information;
●	to our service providers (such as our administrator, accountants, attorneys, custodians, transfer agent, underwriter and proxy solicitors) and their employees as is necessary to service shareholder accounts or otherwise provide the applicable service;
●	to comply with court orders, subpoenas, lawful discovery requests, or other legal or regulatory requirements; or
●	as allowed or required by applicable law or regulation.

When the Fund shares non-public shareholder personal information referred to above, the information is made available for limited business purposes and under controlled circumstances designed to protect our shareholders’ privacy. The Fund does not permit use of shareholder information for any non-business or marketing purpose, nor does the Fund permit third parties to rent, sell, trade or otherwise release or disclose information to any other party.

The Fund’s service providers, such as their adviser, administrator, and transfer agent, are required to maintain physical, electronic, and procedural safeguards to protect shareholder nonpublic personal information; to prevent unauthorized access or use; and to dispose of such information when it is no longer required.

Personnel of affiliates may access shareholder information only for business purposes. The degree of access is based on the sensitivity of the information and on personnel need for the information to service a shareholder’s account or comply with legal requirements.

If a shareholder ceases to be a shareholder, we will adhere to the privacy policies and practices as described above. We may choose to modify our privacy policies at any time. Before we do so, we will notify shareholders and provide a description of our privacy policy.

In the event of a corporate change in control resulting from, for example, a sale to, or merger with, another entity, or in the event of a sale of assets, we reserve the right to transfer your non-public personal information to the new party in control or the party acquiring assets.

Semi Annual Report 2024

189

CION Ares Diversified Credit Fund

Additional Information (continued)

June 30, 2024 (Unaudited)

Board of Trustees and Executive Officers

Trustees

Information regarding the members of the Board is set forth below. The Trustees have been divided into two groups — Interested Trustees and Independent Trustees. As set forth in the Fund’s declaration of trust, each Trustee’s term of office shall continue until his or her death, resignation or removal.

				Number of
				Portfolios
				in Fund
				Complex
				Overseen
		Term of Office	Principal	by Trustee
Name, Address⁽¹⁾	Position(s) Held	and Length of	Occupation(s)	(including the	Other Directorships
and Year of Birth	with the Trust	Time Served	During Past 5 Years	Fund)⁽²⁾	Held by Trustee

Interested Trustees⁽³⁾
Mark Gatto	Trustee	2016	Co-Chief Executive	1	CION Investment
1972			Officer and Co-		Corporation; CION
			President, CION		Ares Management,
			Investment Group,		LLC
			LLC and Co-Chief
			Executive Officer,
			CION Investment
			Corporation;
			Director, CION Ares
			Management, LLC
Mitch Goldstein	Trustee	2016	Partner of Ares	2	Ares Strategic
1967			Management		Income Fund
			Corporation; Co-
			President, Ares
			Capital Corporation;
			Co-Chief Executive
			Officer, Ares
			Strategic Income
			Fund
Michael A. Reisner	Trustee	2016	Co-Chief Executive	1	CION Investment
1970			Officer and Co-		Corporation; CION
			President, CION		Ares Management,
			Investment Group,		LLC
			LLC and Co-Chief
			Executive Officer,
			CION Investment
			Corporation;
			Director, CION Ares
			Management, LLC
David A. Sachs	Trustee and	2016	Partner of Ares	3	Terex Corporation;
1959	Chairman of the		Management		Ares Dynamic Credit
	Board		Corporation		Allocation Fund,
					Inc.; Ares Private
					Markets Fund; CION
					Ares Management,
					LLC

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Additional Information (continued)

June 30, 2024 (Unaudited)

Trustees

				Number of
				Portfolios
				in Fund
				Complex
				Overseen
		Term of Office	Principal	by Trustee
Name, Address⁽¹⁾	Position(s) Held	and Length of	Occupation(s)	(including the	Other Directorships
and Year of Birth	with the Trust	Time Served	During Past 5 Years	Fund)⁽²⁾	Held by Trustee

Independent Trustees
Elaine Orr	Trustee	2022	Serves on various	2	Ares Dynamic Credit
1966			fund and pension		Allocation Fund,
			boards; from 2018		Inc.;
			to 2019, Senior
			Director of
			Philanthropy and
			Strategic
			Partnerships for the
			Robert Toigo
			Foundation
Jeffrey Perlowitz	Trustee	2020	Independent	1	PennyMac Financial
1956			Consultant; prior to		Services, Inc.
			2016, Managing
			Director, Citigroup,
			Inc.
John Joseph Shaw	Trustee	2016	Independent	2	Ares Dynamic Credit
1951			Consultant; prior to		Allocation Fund, Inc.
			2012, President,
			Los Angeles Rams
Bruce H. Spector	Trustee	2016	Independent	2	Ares Dynamic Credit
1942			Consultant; from		Allocation Fund, Inc.
			2007 to 2015,
			Senior Advisor,
			Apollo Global
			Management, LLC
			(private equity)
Mark R. Yosowitz	Trustee	2016	From 2014 to	1	None
1968			present, President,
			Mentored; from
			2014 to present,
			Adjunct Professor,
			Brooklyn Law
			School; from 2008
			to present, Senior
			Vice President,
			Corporate
			Development,
			ThinkEco Inc.

⁽¹⁾	The address of each Trustee is care of the Corporate Secretary of the Fund at 1800 Avenue of the Stars, Suite 1400, Los Angeles, CA 90067.

⁽²⁾

The term “Fund Complex” means two or more registered investment companies that share the same investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies or hold themselves out to investors as related companies for the purpose of investment and investor services.

⁽³⁾	“Interested person,” as defined in the Investment Company Act, of the Fund. Mark Gatto, Mitch Goldstein, Michael Reisner and David Sachs are interested persons of the Fund due to their affiliation with the Adviser.

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Additional Information (continued)

June 30, 2024 (Unaudited)

Executive Officers

		Term of Office
Name, Address⁽¹⁾	Position(s) Held	and Length of
and Year of Birth	with the Trust	Time Served	Principal Occupation(s) During Past 5 Years
John Atherton	Vice President and	2018	John Atherton is a Partner and General Counsel, Europe in the Ares
1981	Assistant Secretary		Legal Department. Prior to joining Ares in 2018, John Atherton was
			General Counsel, Private Investment Structures at Schroder Adveq.
Joshua Bloomstein	Vice President and	2016	Joshua Bloomstein serves as a Partner and General Counsel (Credit)
1973	Assistant Secretary		and Deputy General Counsel (Corporate) of Ares Management
			Corporation, where Joshua Bloomstein focuses on credit matters.
			Joshua Bloomstein is General Counsel, Vice President and Secretary
			of Ares Capital Corporation (“ARCC”), General Counsel and Secretary
			of Ares Strategic Income Fund (“ASIF”) and Vice President and
			Assistant Secretary of Ares Commercial Real Estate Corporation and
			of Ares Dynamic Credit Allocation Fund, Inc. (“ARDC”), a NYSE-listed,
			closed end fund managed by an affiliate of Ares. Joshua Bloomstein
			joined Ares in 2006.
Paul Cho	Vice President	2024	Paul Cho is a Managing Director and Chief Accounting Officer in the
1982			Ares Finance and Accounting Department. Paul Cho additionally
			serves as Chief Accounting Officer of ARCC and ASIF, and as a Vice
			President of ARDC. Paul Cho joined Ares in 2008.
Michael Dennis	Vice President	2017	Michael Dennis is a Partner and Co-Head of European Credit, in the
1976			Ares Credit Group. Michael Dennis serves on the Ares Executive
			Management Committee. Additionally, Michael Dennis serves as a
			member of the Ares Credit Group’s European Direct Lending and
			European Liquid Credit Investment Committees, and the Ares Asia
			Direct Lending (Australia) Investment Committee. Michael Dennis
			joined Ares in 2007.
Kevin Early	Vice President	2017	Kevin Early is a Partner, European Chief Financial Officer in the Ares
1971			Finance and Accounting Department. Kevin Early joined Ares in
			2012.
Anton Feingold	Vice President and	2016	Anton Feingold is a Partner and Associate General Counsel in the
1980	Assistant Secretary		Ares Legal Group and Assistant Secretary of Ares Management
			Corporation. Anton Feingold also serves as General Counsel, Vice
			President and Secretary of Ares Commercial Real Estate
			Corporation. Anton Feingold joined Ares in 2014.
Ian Fitzgerald	General Counsel	2019	Ian Fitzgerald is a Managing Director and Deputy General Counsel
1975	and Corporate		(Credit) in the Ares Legal Group, where Ian Fitzgerald focuses on
	Secretary		direct lending matters. Additionally, Ian Fitzgerald serves as General
	Vice President and	2017-2019	Counsel and Corporate Secretary of ARDC. Ian Fitzgerald also serves
	Assistant Secretary		as Vice President and Assistant Secretary of Ivy Hill Asset
			Management, L.P. (“IHAM”) and Vice President and Assistant
			Secretary of Ivy Hill Asset Management GP, LLC, IHAM’s General
			Partner. Ian Fitzgerald joined Ares in 2010.
Mark Gatto	Co-President and	2016	Mark Gatto is Co-Chief Executive Officer and Co-President of CION
1972	Co-Chief Executive		Investment Group, LLC as well as Co-Chief Executive Officer of CION
	Officer		Investment Corp. (“CIC”), a business development company focused
			on middle market loans. Mark Gatto serves on the investment
			committee of CIC. In addition, Mark Gatto is a Director of CION Ares
			Management, LLC. Mark Gatto joined CION in 1999.
Mitch Goldstein	Vice President	2016	Mitch Goldstein is a Partner and Co-Head of the Ares Credit Group
1967			and a member of the Executive Management Committee of Ares
			Management. Mitch Goldstein additionally serves as Co-President of
			ARCC and an interested trustee and Co-Chief Executive Officer of
			ASIF. Mitch Goldstein is a member of the Ares Credit Group’s U.S.
			Direct Lending, Commercial Finance, Pathfinder and the Ivy Hill Asset
			Management Investment Committees, the Ares Infrastructure Debt
			Investment Committee and the Ares Asia Direct Lending (Australia)
			Investment Committee. Mitch Goldstein joined Ares Management in
			2005.

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Additional Information (continued)

June 30, 2024 (Unaudited)

Executive Officers

		Term of Office
Name, Address⁽¹⁾	Position(s) Held	and Length of
and Year of Birth	with the Trust	Time Served	Principal Occupation(s) During Past 5 Years
Blair Jacobson	Vice President	2017	Blair Jacobson is a Partner and Co-Head of European Credit in the
1972			Ares Credit Group and a member of the Executive Management
			Committee of Ares Management and the Ares Diversity, Equity and
			Inclusion Council. Blair Jacobson also serves on the boards of Ares
			Management Limited and Ares Management UK Limited. Additionally,
			Blair Jacobson serves on the Ares Credit Group’s European Direct
			Lending and European Liquid Credit Investment Committees, the
			Ares Secondaries Group’s Credit Investment Committee and the Ares
			Sports, Media and Entertainment Investment Committee. Blair
			Jacobson joined Ares in 2012.
Keith Kooper	Vice President and	2016	Keith Kooper is a Partner and Co-General Counsel (Real Estate) in
1975	Assistant Secretary		the Ares Legal Group. Keith Kooper also serves as Vice President
			and Assistant Secretary of Ares Commercial Real Estate
			Corporation. Keith Kooper joined Ares in 2013.
Angela Lee	Vice President	2024	Angela Lee is a Managing Director in the Ares Finance and
1986			Accounting Department. Angela Lee additionally serves as Vice
			President and Assistant Treasurer of ARCC and ASIF, and as a Vice
			President of ARDC. Angela Lee joined Ares in 2010.
Scott Lem	Chief Financial	2019	Scott Lem is a Partner and Chief Financial Officer of the Public Credit
1977	Officer		Funds in the Ares Finance and Accounting Department. Scott Lem
	Treasurer	2024	additionally serves as Chief Financial Officer and Treasurer of ARCC,
			ASIF and ARDC. Scott Lem joined Ares in 2003.
Greg Margolies	Vice President	2016	Greg Margolies is a Partner in the Ares Credit Group. Additionally,
1966			Greg Margolies serves as a member of the Ares Credit Group’s
			Opportunistic Credit Investment Committees and is on the Board of
			Directors of the Ares Charitable Foundation. Greg Margolies joined
			Ares in 2009.
Lisa Morgan	Chief Compliance	2021	Lisa Morgan is a Partner and Chief Compliance Officer, Registered
1976	Officer and Anti-		Products in the Ares Compliance Group. Lisa Morgan also serves as
	Money Laundering		the Chief Compliance Officer of ARCC, Ares Private Markets Fund
	Officer		(“APMF”), ASIF and ARDC. Lisa Morgan joined Ares in 2017.
Michael Reisner	Co-President and	2016	Michael Reisner is Co-Chief Executive Officer and Co-President of
1970	Co-Chief Executive		CION Investment Group, LLC as well as Co-Chief Executive Officer of
	Officer		CIC, a business development company focused on middle market
			loans. Michael Reisner serves on the investment committee of CIC.
			In addition, Michael Reisner is a Director of CION Ares Management,
			LLC. Michael Reisner joined CION in 2001.
Naseem Sagati	Vice President and	2019	Naseem Sagati Aghili is a Partner, General Counsel and Corporate
Aghili	Assistant Secretary		Secretary of Ares Management. Naseem Sagati Aghili is a Partner in
1981			and Head of the Ares Legal Group and additionally serves on the
			Ares Executive Management Committee, Enterprise Risk Committee
			and the Ares Diversity, Equity and Inclusion Council. Naseem Sagati
			Aghili also serves as a Vice President of ARCC, ASIF, ARDC and
			APMF. Prior to being named the firm’s General Counsel in 2020,
			Naseem Sagati Aghili served in a variety of roles at Ares
			Management, including most recently as Co-General Counsel, Deputy
			General Counsel and General Counsel of Private Equity. Naseem
			Sagati Aghili joined Ares in 2009.
Gregg Schill	Vice President	2016	Gregg Schill is Senior Managing Director of CION Investment Group,
1981			LLC. Prior to this, Gregg Schill served as Managing Director since
			2012. Gregg Schill joined CION in 2001.

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CION Ares Diversified Credit Fund

Additional Information (continued)

June 30, 2024 (Unaudited)

Executive Officers

		Term of Office
Name, Address⁽¹⁾	Position(s) Held	and Length of
and Year of Birth	with the Trust	Time Served	Principal Occupation(s) During Past 5 Years
Michael Smith	Vice President	2024	Michael Smith is a Partner and Co-Head of the Ares Global Credit
1971			Group and a member of the Executive Management Committee of
			Ares Management. Michael Smith additionally serves as Director of
			ARCC, an interested trustee and Co-Chief Executive Officer of ASIF.
			Michael Smith is a member of the Ares Credit Group's U.S. Direct
			Lending, Opportunistic Credit and Commercial Finance Investment
			Committees, the Ivy Hill Asset Management Investment Committee,
			the Ares Secondaries Group's Private Equity Investment Committee,
			and the Ares Infrastructure Group's Infrastructure Opportunities,
			Climate Infrastructure Partners and Infrastructure Debt Investment
			Committees. Michael Smith joined Ares in 2004.

⁽¹⁾	The address of each officer is care of the Corporate Secretary of the Fund at 1800 Avenue of the Stars, Suite 1400, Los Angeles, CA 90067.

The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request. Shareholders may call 888-729-4266 to request the SAI.

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Additional Information (continued)

June 30, 2024 (Unaudited)

Approval of Investment Advisory Agreement and Investment Sub-Advisory Agreement

The Board of Trustees (the “Board”) of CION Ares Diversified Credit Fund (the “Fund”), a majority of whom are not “interested persons” (as defined in the Investment Company Act of 1940, as amended (the “1940 Act”)) of the Fund (the “Independent Trustees”), renewed the Third Amended and Restated Investment Advisory Agreement between the Fund and CION Ares Management LLC (the “Adviser”) and the Investment Sub-Advisory Agreement by and among the Adviser, Ares Capital Management II LLC (the “Sub-Adviser”) and the Fund (the “Agreements”) at a meeting held on May 21, 2024 (the “Meeting”).

The Fund’s Board has the responsibility under the 1940 Act to consider the renewal of the Fund’s Agreements on an annual basis called for the purpose of voting on such renewal. In addition, the Fund’s Board generally receives, reviews and evaluates information concerning the services and personnel of the Adviser and the Sub-Adviser (together the “Advisers”) and their affiliates at quarterly meetings of the Board. While particular emphasis might be placed on information concerning the Fund’s investment performance, comparability of fees, total expenses and profitability at any meeting at which a renewal of the Agreements is considered, the process of evaluating the Advisers’ and the Fund’s investment advisory and administrative arrangements is an ongoing one.

In connection with the renewal of the Agreements, the Independent Trustees met with their independent counsel in executive session. Counsel to the Independent Trustees reviewed with the Independent Trustees a memorandum outlining the legal duties of the Board under the 1940 Act and applicable state law and discussed the factors outlined by the federal courts as relevant to a board’s consideration of the approval of an investment advisory agreement.

In considering whether to renew the Agreements, the Fund’s Board reviewed certain information provided to the Board by the Advisers in advance of the Meeting, and supplemented orally at the Meeting, including, among other things, information concerning the services rendered to the Fund by the Advisers, comparative fee, expense and performance information, and other reports of and presentations by representatives of the Sub-Adviser concerning the Fund’s and Advisers’ operations, compliance programs and risk management. The Board also reviewed a report prepared by Broadridge, an independent third-party data provider, that included comparative fee and performance information showing the Fund’s performance for various periods ended December 31, 2023 and expenses as compared to the performance and expenses of a group of leveraged, closed-end interval funds (“Peer Group”) as selected by Broadridge.

In determining whether to renew the Agreements, the Board considered all factors that it believed to be relevant, including those discussed below. The Board did not identify any one factor as dispositive, and each Trustee may have attributed different weights to the factors considered.

(a)            The nature, extent and quality of services to be provided by the Advisers — With respect to the nature, extent and quality of services to be provided by the Advisers, the Board reviewed the information regarding the types of services to be provided under the Agreements and information describing the Advisers’ organization and business, including the quality of the investment research capabilities of the Advisers and the other resources dedicated to performing services for the Fund. The Board noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Advisers involved with the Fund, including the portfolio management team’s expertise in managing securities in which the Fund invests, the integrated platforms of the Advisers and their affiliates and the benefits, resources and opportunities of the platforms that the Advisers are able to access. Fund management discussed the size and experience of the Advisers’ staff, the experience of their key personnel in providing investment management services, including the members of the Sub-Adviser’s allocation committee, the systems used by the Advisers’ personnel and the ability of the Advisers to attract and retain capable personnel. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, was also considered. The Board also noted the reputation and track record of the Advisers’ organizations as leading managers of credit assets.

(b)            Investment performance of the Fund and the Advisers — With respect to investment performance of the Fund and the Advisers, the Board reviewed statistical information concerning the Fund’s investment performance in relation to its stated objective, as well as comparative data with respect to the performance of the Fund’s Peer Group. Representatives of the Advisers reviewed with the Board the Fund’s performance. In connection with its review, the Board discussed the results of the performance comparisons with the Peer Group. The Board noted that the Fund’s total return performance, on a net asset value basis, had outperformed the median return of the Peer Group in each of the 1-, 2- and 3-year periods ended December 31, 2023.

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CION Ares Diversified Credit Fund

Additional Information (continued)

June 30, 2024 (Unaudited)

(c)            Cost of the services to be provided and profits to be realized by the Advisers from the relationship with the Fund — The Board considered information about the profitability of the Fund to the Advisers, as well as the costs of services provided by the Advisers to the Fund. The Board received and reviewed information relating to the financial condition of the Advisers and their affiliates. Representatives of the Advisers reviewed the expenses allocated and profit received by the Advisers and their affiliates and the resulting profitability percentage for managing the Fund and the method used to determine the expenses and profit.

The Board also considered that the Adviser pays the Sub-Adviser a portion of its advisory fee as compensation for the sub-advisory services.

(d)            Economies of scale and whether fee levels reflect these economies of scale — The Board considered the extent to which economies of scale are expected to be realized and whether fee levels reflect these economies of scale. The Trustees noted that the direct origination strategies used by the Fund have limited scalability and require additional resources as assets grow due to the need to originate new loans in which to invest. The Trustees noted the possibility of economies of scale related to non-advisory services that may inure to the benefit of the Fund.

(e)             Comparison of services to be rendered and fees to be paid to those under other investment advisory contracts, such as contracts of the same and other investment adviser or other clients — In evaluating the management fees and expenses, the Board considered the Fund’s management fees and the Fund’s expense ratios in absolute terms and as compared with the fees and expenses of the Peer Group. Based upon the comparative fee information provided, the Board noted that the Fund’s contractual management fees were generally in line with the median of the Peer Group, although the Fund’s total expenses exceeded the Peer Group median. The Board considered that the Agreements provide that the Advisers may earn an incentive fee and, to the extent the fee is earned and paid, would result in a higher rate of total compensation from the Fund to the Advisers than the base-management fee rate stated in the Agreements. In addition, the Board also noted the reputation and track record of the Advisers’ organization as leading managers of credit assets.

In discussing the Fund’s management fees and expenses, representatives of the Advisers noted, among other things, that the Advisers believe the management fees and expenses are reasonable when compared to, and are consistent with, other similar funds and portfolios, particularly in light of the Fund’s performance. Representatives of the Advisers also noted that the Fund’s investment strategy of investing in a portfolio of directly originated loans, secured floating and fixed rate syndicated loans, corporate bonds, asset-backed securities, commercial real estate loans and other types of credit instruments requires additional expertise and expense related to trade support, pricing and valuation, marketing, investor education and regulatory monitoring.

(f)             Benefits derived or to be derived by the Advisers from their relationship with the Fund — The Board also considered the extent to which benefits other than the fees and reimbursement amounts might accrue to the Advisers and their affiliates from their relationships with the Fund. The Board noted in this regard that, while certain funds and accounts managed by the Advisers may engage from time to time in cross trade and co-investment transactions with the Fund as permitted by the 1940 Act, neither the Adviser or its affiliate execute portfolio transactions on behalf of the Fund, and that the Sub-Adviser had confirmed that the Fund does not obtain research (or “Soft Dollars”) from trades made on behalf of the Fund. However, the Board recognized that the Advisers might derive reputational and other benefits from their association with the Fund, including access to a different investor base than historically serviced by the Sub-Advisor and its affiliates.

Conclusion

At the conclusion of these discussions, the Board agreed that it had been furnished with information sufficiently responsive to allow it to make an informed business decision with respect to the renewal of the Agreements. Based on the discussions and considerations at the Meeting, and in reliance on information received on a routine and regular basis through the year relating to the operations of the Fund and the investment management and other services provided under the Agreements, the Board, including the Independent Trustees, supported the approval of the renewal of the Agreements for an additional one-year period ending May 22, 2025.

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Semi Annual Report 2024

(b) Not applicable.

Item 2. Code of Ethics.

Not applicable for this filing.

Item 3. Audit Committee Financial Expert.

Not applicable for this filing.

Item 4. Principal Accountant Fees and Services.

Not applicable for this filing.

Item 5. Audit Committee of Listed Registrants.

Not applicable for this filing.

Item 6. Investments.

(a)            Schedule of Investments is included as part of Item 1 of this Form N-CSR.

(b)            Not applicable.

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

Not applicable.

Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

Not applicable.

Item 9. Proxy Disclosures for Open-End Management Investment Companies.

Not applicable.

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

Not applicable.

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

A statement regarding the basis for approval of the Fund’s investment advisory and sub-advisory contracts is included as part of the Report to Stockholders filed under Item 1 of this report.

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Investment Companies.

Not applicable for this filing.

Item 13. Portfolio Managers of Closed-End Management Investment Companies.

(a)(1) Not applicable for this filing.

(a)(2) Not applicable for this filing.

(a)(3) Not applicable for this filing.

(a)(4) Not applicable for this filing.

(b) There have been no changes, as of the date of this filing, to the portfolio managers identified in the most recently filed annual report on Form N-CSR (811-23165) for CION Ares Diversified Credit Fund (the “Fund”).

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None during the period covered by this Form N-CSR filing pursuant to a plan or program.

Item 15. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Trustees during the period covered by this Form N-CSR filing.

Item 16. Controls and Procedures.

(a)

The Fund’s principal executive and principal financial officers have concluded that the Fund’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) (17 CFR 270.30a-3(c)) are effective, as of a date within 90 days of the filing date of this Form N-CSR based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the 1934 Act, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)

There were no changes in the Fund’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

(a)

Not applicable.

(b)

Not applicable.

Item 18. Recovery of Erroneously Awarded Compensation.

(a)            Not applicable.

(b)            Not applicable.

Item 19. Exhibits.

(a)(1)

Not applicable for this filing.

(a)(2)

Not applicable for this filing.

(a)(3)

The certifications required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) are attached hereto.

(a)(4)

Not applicable.

(a)(5)

Not applicable.

(b)

The certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)) and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Fund has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CION ARES DIVERSIFIED CREDIT FUND

By:	/s/ Michael A. Reisner
	Michael A. Reisner
	Co-President and Chief Executive Officer
Date:	September 5, 2024

By:	/s/ Mark Gatto
	Mark Gatto
	Co-President and Chief Executive Officer
Date:	September 5, 2024

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Fund and in the capacities and on the dates indicated.

By:	/s/ Michael A. Reisner
	Michael A. Reisner
	Co-President and Co-Chief Executive Officer
Date:	September 5, 2024

By:	/s/ Mark Gatto
	Mark Gatto
	Co-President and Co-Chief Executive Officer
Date:	September 5, 2024

By:	/s/ Scott C. Lem
	Scott C. Lem
	Chief Financial Officer
Date:	September 5, 2024

CION Ares Diversified Credit Fund (CADEX) N-CSRSCertified semi-annual shareholder report (management investment company)