Ares Strategic Income Fund Reports Q2 2026 Portfolio Update

What Happened Ares Strategic Income Fund (ASIF) filed an 8‑K (Item 2.02) on August 4, 2026 with a Q2 2026 portfolio update. As of June 30, 2026, Class I shares have an inception‑to‑date annualized return of 9.94% (through 2Q26) and ASIF paid distributions for Class I at an annualized rate of 9.63% based on NAV. The Board approved continuing monthly distributions through September 2026. For Q2 2026 the Fund generated a total return of 1.88% for Class I shares, driven mainly by income but partially offset by realized and unrealized losses tied to market moves.

Key Details

• Total assets: $23.0 billion, diversified across 828 portfolio companies (average position ~0.1%); weighted average mark 100.4%.
• Credit metrics (as of 6/30/2026): only 2 companies on non‑accrual (0.3% of portfolio at amortized cost); organic YoY EBITDA growth +12%; weighted average interest coverage 2.3x; weighted average net leverage 5.3x; weighted average loan‑to‑value 40%.
• Liquidity and leverage: ~ $4.0 billion available liquidity; total leverage 1.19x (1.15x net of ~$389 million cash), well below the 2.0x regulatory limit.
• Board action: monthly distributions approved through September 2026; Fund emphasizes conservative balance sheet and capacity to pursue direct‑lending opportunities in volatile markets.

Why It Matters The report signals that ASIF’s portfolio is large, broadly diversified, and producing high income while keeping non‑accruals very low, supporting continued monthly distributions. Strong liquidity and below‑limit leverage give the Fund flexibility to meet shareholder redemptions and pursue new lending opportunities. Investors should note the filing also discloses realized and unrealized losses during the quarter and the usual caution that past performance is not a guarantee of future results.