SCHEDULE: Principal Entities Report 6.7% Stake in CION Ares Preferred Shares

Principal Life Insurance Company and Principal Global Investors jointly reported beneficial ownership of 6.7% of CION Ares Diversified Credit Fund's Mandatory Redeemable Preferred Shares.

Summary

• Principal Life Insurance Company (PLIC) and Principal Global Investors, LLC (PGI) jointly filed an Amendment No. 2 to Schedule 13G.
• The entities reported beneficial ownership of 2,880,000 Mandatory Redeemable Preferred Shares of CION Ares Diversified Credit Fund (CUSIP: 17260G2@1).
• This ownership represents 6.7% of the total class of securities.
• PLIC directly owns the shares, while PGI is deemed an indirect beneficial owner.
• The shares were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 5

Explanation: Neutral, as this is a factual report of beneficial ownership without performance or operational details. The certification of ordinary course business is a standard positive for passive investors.

Positives

• A significant institutional investor, Principal Life Insurance Company, maintains a substantial stake, potentially indicating confidence in the preferred shares.
• The filing explicitly states the shares were acquired and are held in the ordinary course of business, not for control purposes, suggesting a passive investment intent.

Future Outlook

NA

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities.

Industry Context

This filing indicates continued institutional interest in preferred equity instruments, which are often sought for their fixed income characteristics and seniority in the capital structure, particularly by insurance companies like Principal Life for their investment portfolios.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant institutional ownership, which can be a stabilizing factor.
• Regulatory Authorities: Fulfills SEC disclosure requirements for beneficial ownership exceeding 5%.

Key Dates

Keywords

CION Ares Diversified Credit Fund, Mandatory Redeemable Preferred Shares, Principal Life Insurance Company, Principal Global Investors, Schedule 13G, Beneficial Ownership, Preferred Stock, Institutional Investor