Strategy. The Fund invests, under normal circumstances, at least 80% of its assets (including the amount of borrowings for investment purposes) in U.S. and non-U.S. debt instruments. The Fund seeks to achieve its investment goal by investing in a wide array of debt securities or other debt instruments. The Fund may invest in debt instruments of any credit quality or rating and may invest without limit in loans, bonds and other debt instruments that are rated below investment grade by one or more Nationally Recognized Statistical Ratings Organizations (NRSRO) (i.e., rated Ba or lower by Moodys Investors Service, Inc. (Moodys) or BB or lower by S&P Global Ratings (S&P) or, if unrated by S&P or Moodys, deemed by the Funds sub-adviser, … Show more… The Fund invests, under normal circumstances, at least 80% of its assets (including the amount of borrowings for investment purposes) in U.S. and non-U.S. debt instruments. The Fund seeks to achieve its investment goal by investing in a wide array of debt securities or other debt instruments. The Fund may invest in debt instruments of any credit quality or rating and may invest without limit in loans, bonds and other debt instruments that are rated below investment grade by one or more Nationally Recognized Statistical Ratings Organizations (NRSRO) (i.e., rated Ba or lower by Moodys Investors Service, Inc. (Moodys) or BB or lower by S&P Global Ratings (S&P) or, if unrated by S&P or Moodys, deemed by the Funds sub-adviser, Ares Capital Management II, LLC (Ares), to be of comparable quality. These investments may include distressed or defaulted debt instruments. Securities rated below investment grade are sometimes referred to as high yield or junk bonds. The Funds investment policies are based on credit ratings at the time of purchase. In managing the Funds portfolio, Ares seeks to take advantage of opportunities presented from time to time in credit markets by systematically allocating and reallocating the Funds assets among core investments and opportunistic investments as credit market conditions change. The Funds core investments include the following: ? Opportunistic Liquid CreditThe Fund seeks to generate current income with attractive relative value by investing in senior secured and unsecured debt of U.S. and non-U.S. companies. ? Structured CreditThe Fund seeks to generate current income and capital appreciation by investing in debt and equity securities of collateralized loan obligations (CLOs) in the U.S. and other developed markets. The Fund may invest in subordinated tranches of CLOs which typically have lower ratings and are therefore considered riskier than senior tranches of CLOs. ? Special SituationsThe Fund seeks capital appreciation by investing in distressed U.S. and non-U.S. corporate loans and bonds that trade at significant discounts to par value. ? HedgesThe Fund engages in short selling, futures contracts, total return and interest rate swaps, pairs trades and options transactions in an attempt to achieve downside protection and reduce portfolio volatility. The Funds hedging strategies may include, among other things, entering into synthetic credit index short positions, single security short selling, pairs trades, futures contracts, total return and interest rate swaps, and certain options transactions. The Fund may also invest in securities that may be offered and sold to only qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended. In addition, the Fund may make opportunistic investments from time to time in stressed and distressed securities, including debtor-in-possession loans (sometimes referred to as DIP loans), exit financings, rescue financings, and post-bankruptcy equity securities, as well as preferred stock, convertible debt, and other securitized vehicles. DIP loans are a special kind of financing meant for companies that are financially distressed and in bankruptcy. Such loans typically have priority over existing debt, equity and other claims. The corporate loans (commonly referred to as bank loans) in which the Fund invests are typically senior in payment priority and secured by a lien on the borrowers assets. These corporate loans may include covenant lite loans, second lien loans, mezzanine loans and, to a limited extent, DIP loans and may have floating or fixed rates of interest. The capacity of a company to borrow and the quality of the credit underlying a corporate loan are typically determined based upon one or more of the projected cash flows of the borrower, the enterprise value of the borrower or the asset value of the collateral supporting any liens. The corporate debt securities, including high yield bonds, and other similar debt instruments in which the Fund invests are typically unsecured and may be subordinated in payment priority to other debt of the borrower. The terms governing these debt instruments may include features that can result in principal appreciation under certain circumstances. The capacity of a company to issue debt securities or other similar debt instruments and the quality of the credit underlying a companys debt securities or other similar debt instruments are typically determined based upon the projected cash flows of the borrower, the enterprise value of the borrower or both. Show less