Avenue Income Credit Strategies Fund announced that its Board of Trustees approved the appointment of Mr. Jeffrey J. Gary as the new Portfolio Manager of the Fund, effective on or about November 23, 2012. Mr. Gary, a Senior Portfolio Manager of Avenue Capital Management II, L.P., the Fund's investment adviser will be primarily responsible for the day-to-day management of the Fund's assets. Mr. Gary joined the Adviser in 2011 and has more than 20 years of investment experience in high yield, bank loan and distressed investment strategies, including the last fifteen years as a portfolio manager.

Gary is also the Portfolio Manager of Avenue Credit Strategies Fund, an open-end mutual fund managed by the Adviser and a series of Avenue Mutual Funds Trust. Effective with the appointment of Mr. Gary, Avenue Europe International Management, L.P. will no longer serve as the Fund's investment sub-adviser given that no portfolio manager of the Fund will be employed by the sub-adviser. Under Mr. Gary's portfolio management, it is expected that under normal market conditions the Fund will continue to invest in both U.S. and non-U.S. issuers.

The Board also approved changes to certain non-fundamental investment policies of the Fund, after considering a discussion by the Adviser on the potential benefits of such changes and determining that they were in the best interests of the Fund and its shareholders. Effective on or about November 23, 2012, it will no longer be an investment policy of the Fund to invest in credit obligations that at the time of purchase are at or below an applicable benchmark plus a credit spread. In adhering to the Avenue Credit Thresholds, the Fund generally does not invest, at the time the investment is made, in the same credit obligations as the other accounts managed by the Adviser.

Upon the removal of the Avenue Credit Thresholds, the Fund may invest in securities and other credit obligations in which other accounts managed by the Adviser, including private funds, also invest. The Fund also announced that its Board approved the appointment of Mr. Stephen M. Atkins, Controller of the Adviser, as Treasurer and Chief Financial Officer of the Fund effective immediately. Mr. Atkins joined the Adviser in December 2010 and has over 20 years of fund accounting and administration experience.