Oaktree Diversified Income Fund Inc. (Form: N-CSR, Received: 03/10/2023 16:46:46)

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 811-23715

OAKTREE DIVERSIFIED INCOME FUND INC.

(Exact name of registrant as specified in charter)

BROOKFIELD PLACE

250 VESEY STREET, 15^thFloor

NEW YORK, NEW YORK 10281-1023

(Address of principal executive offices) (Zip code)

BRIAN F. HURLEY, PRESIDENT

OAKTREE DIVERSIFIED INCOME FUND INC.

BROOKFIELD PLACE

250 VESEY STREET, 15^thFloor

NEW YORK, NEW YORK 10281-1023

(Name and address of agent for service)

Registrant’s telephone number, including area code: (855) 777-8001

Date of fiscal year end: December 31

Date of reporting period: December 31, 2022

Item 1. Reports to Stockholders.

2022

ANNUAL REPORT

DECEMBER 31, 2022

Oaktree Diversified Income Fund Inc.

* Please see inside front cover of the report for important information regarding delivery of shareholder reports.

IN PROFILE

Oaktree Fund Advisors, LLC (the "Adviser" or "Oaktree") is an investment adviser registered with the SEC and is also an affiliate and related adviser of Oaktree Capital Management, L.P., an investment adviser registered with the SEC. Oaktree serves as the investment adviser to the Fund. Oaktree was founded in April 1995 and is a leader among global investment managers specializing in alternative investments. Oaktree manages assets across a wide range of investment strategies within four asset classes: Credit, Private Equity, Real Assets, and Listed Equities. As of December 31, 2022, Oaktree had $170 billion in assets under management. Brookfield Public Securities Group LLC ("PSG") serves as the Administrator to the Fund. PSG is an indirect wholly-owned subsidiary of Brookfield Asset Management ULC with approximately $800 billion of assets under management as of December 31, 2022, an unlimited liability company formed under the laws of British Columbia, Canada ("BAM ULC"). Brookfield Corporation, a publicly traded company (NYSE: BN; TSX: BN), holds a 75% interest in BAM ULC, while Brookfield Asset Management Ltd., a publicly traded company (NYSE: BAM; TSX: BAMA) ("Brookfield Asset Management"), holds a 25% interest in BAM ULC. In 2019, Brookfield acquired a majority interest in Oaktree.

Oaktree Diversified Income Fund Inc. (the "Fund") is managed by Oaktree Fund Advisors, LLC. The Fund uses its website as a channel of distribution of material company information. Financial and other material information regarding the Fund is routinely posted on and accessible at https://publicsecurities.brookfield.com/products/us-interval-funds/oaktree-diversified-income-fund?id=192692

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund's annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund's website (https://publicsecurities.brookfield.com/en), and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker, investment adviser, bank or trust company) or, if you are a direct investor, by calling the Fund (toll-free) at 1-855-777-8001 or by sending an e-mail request to the Fund at publicsecurities.enquiries@brookfield.com.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you may call 1-855-777-8001 or send an email request to publicsecurities.enquiries@brookfield.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held within the fund complex if you invest directly with the Fund.

TABLE OF CONTENTS

Letter to Shareholders					1
Management Discussion of Fund Performance					3
Portfolio Characteristics					7
Consolidated Schedule of Investments					8
Consolidated Statement of Assets and Liabilities					36
Consolidated Statement of Operations					37
Consolidated Statements of Changes in Net Assets					38
Consolidated Statement of Cash Flows					39
Consolidated Financial Highlights					40
Notes to Consolidated Financial Statements					41
Report of Independent Registered Public Accounting Firm					55
Tax Information					56
Additional Information Regarding the Fund					57
Information Concerning Trustees and Officers					67
Dividend Reinvestment Plan					70
Joint Notice of Privacy Policy					71

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Fund shares.

NOT FDIC INSURED

MAY LOSE VALUE

NOT BANK GUARANTEED

[THIS PAGE IS INTENTIONALLY LEFT BLANK]

LETTER TO SHAREHOLDERS

Dear Shareholders,

We are pleased to provide the Annual Report for the Oaktree Diversified Income Fund (the "Fund") for the year ended December 31, 2022.

Global financial markets experienced a historically challenging year in 2022. A war in eastern Europe, soaring inflation and interest rate hikes to reign in costs resulted in steep losses across equities and fixed income. One of the few silver linings occurred at the very end of the year, when China announced faster-than-expected relaxing of COVID-19 restrictions.

While rising interest rates negatively impacted most credit asset classes in the first half of the year, tighter monetary policy helped floating-rate assets outperform their fixed-rate counterparts as well as equities. During this period, senior loans returned -4.7%, while high yield bonds, investment grade bonds, and U.S. large cap equities were down by 10.1%, 6.4%, and 16.1%, respectively. Despite continued market volatility throughout the second half of 2022, risk assets delivered broad-based gains at the end of the year: Global equities, high yield bonds and senior loans returned 9.9%, 4.3% and 2.6%, respectively. The fourth quarter got off to a rocky start with the failed UK budget proposal that roiled UK gilt markets and higher-than-expected September Consumer Price Index ("CPI") in the U.S. The S&P 500 touched its year-to-date low, while the yields of U.S. high yield bonds soared to their year-to-date high, all in the first half of October. Risk asset prices then reversed course amid better-than-expected third-quarter earnings, perceived more dovish global central bank policy, and a cooling of U.S. inflation in both October and November. A rally lasted for most of the quarter, though markets came under renewed pressure in late December. The result of this was full-year returns of -1.06% for senior loans, -11.19% for high yield bonds, -16.72% for investment grade bonds and -19.44% for equities.

Interest rates were also volatile throughout the year. By mid-year the yields on the 2- and 10-year U.S. Treasury notes increased by 62 bps and 68 bps, respectively. At the end of the third quarter, the the Federal Reserve System's (the "Fed" or the "Federal Reserve") hawkish rhetoric weighed heavily on risk asset prices and pushed interest rates even higher with the yields on the 5- and 10-year U.S. Treasury notes rising by 105 bps and 81 bps, respectively. While the Federal Reserve hiked rates in the U.S. an additional 125 bps during the fourth quarter, ultimately yields on the 5- and 10-year U.S. Treasury notes were roughly unchanged.

Against this backdrop, the Fund's diversified asset mix of both public and private debt provided steady income and performance better than that of high yield bonds, investment grade or equities. Private credit performed well throughout the year, led by strength in non-cyclical sectors, such as health care. After being under significant pressure for much of 2022, the EM asset class rallied in the final two months of the year as negative sentiment began to alleviate amid China's easing of its zero-COVID policy and comprehensive support package for the property sector. The portfolio's high yield bond and senior loan investments across the U.S. and Europe also gained, with loans leading in the final month of the year given their shorter duration and higher current yields, as interest rates rose. Structured credit investments were also additive, given price appreciation for CLO debt tranches (particularly those in Europe) and real estate debt.

At the end of 2022, we increased the portfolio's allocation to private credit, high yield bonds and convertible bonds, with an emphasis on European opportunities trading at dislocated prices. As we look ahead to 2023, we are excited about the opportunity set across credit with yields at multi-year highs. Oaktree's co-founder Howard Marks has described a sea change currently under way in markets, with these higher yields setting the stage for credit to potentially deliver equity-like performance that may help investors accomplish their goals.

In addition to performance information and additional discussion of factors impacting the Fund, this report provides the Fund's audited financial statements and schedules of investments as of December 31, 2022.

We welcome your questions and comments and encourage you to contact our Investor Relations team at 1-855-777-8001 or visit us at https://publicsecurities.brookfield.com/en for more information.

2022 Annual Report
1

LETTER TO SHAREHOLDERS (continued)

Thank you for your support.

Sincerely,


Brian F. Hurley				David W. Levi, CFA
President				Chief Executive Officer
Oaktree Diversified Income Fund Inc.				Brookfield Public Securities Group LLC

These views represent the opinions of Oaktree Fund Advisors, LLC and are not intended to predict or depict the performance of any investment. These views are primarily as of the close of business on December 31, 2022, and subject to change based on subsequent developments.

Investing involves risk. Principal loss is possible. Real assets includes real estate securities, infrastructure securities and natural resources securities. Property values may fall due to increasing vacancies or declining rents resulting from unanticipated economic, legal, cultural or technological developments. Infrastructure companies may be subject to a variety of factors that may adversely affect their business, including high interest costs, high leverage, regulation costs, economic slowdown, surplus capacity, increased competition, lack of fuel availability and energy conservation policies. Natural resources securities may be affected by numerous factors, including events occurring in nature, inflationary pressures and international politics.

Quasar Distributors, LLC is the distributor of Oaktree Diversified Income Fund Inc.

OAKTREE DIVERSIFIED INCOME FUND INC.

MANAGEMENT DISCUSSION OF FUND PERFORMANCE

The Oaktree Diversified Income Fund (the "Fund") Class D shares returned 7.03% for the year ended December 31, 2022, and 2.67% (net of fees) for the final month of the year. The Fund's positive performance in the final month of the year was fueled by a second consecutive month of gains in global emerging markets debt and corporate structured credit. Within emerging markets, Chinese property sector bonds continued benefiting from government support (announced last month,) and corporate bonds in Argentina were also a standout performer. Credit spreads tightened for BBB- and BB-rated CLO debt tranches (particularly in Europe), pushing prices higher at the end of the year, while real estate-backed structured credit posted modest declines. Senior loans contributed positively to performance: their shorter duration and higher current yields helped them outperform high yield bonds, which declined across ratings and regions. Private credit contributed positively, too, led by strength in healthcare private loans.

The Fund's largest sector allocations at the end of 2022 were software (8.5%), hotels, restaurants & leisure (7.9%), healthcare technology (6.7%) and commercial services & supplies (6.3%). At the end of 2022, the Fund's investments had an average yield of 11.46%,¹ a price of 89.5 and an effective duration of 1.27 years. We believe this profile reflects upside potential for both yield and return, balanced against the risk that interest rates could continue rising.

GLOBAL CREDIT MARKET OVERVIEW

Global financial markets experienced a historically challenging year in 2022. A war in eastern Europe, soaring inflation and interest rate hikes to rein in costs resulted in steep losses across equities and fixed income. One of the few silver linings occurred at the very end of the year, when China announced faster-than-expected relaxing of COVID-19 restrictions. While rising interest rates negatively impacted most credit asset classes in the first half of the year, tighter monetary policy helped floating-rate assets outperform their fixed-rate counterparts as well as equities. During this period, senior loans returned -4.7%, while high yield bonds, investment grade bonds, and U.S. large cap equities were down by 10.1%, 6.4%, and 16.1%, respectively. Despite continued market volatility throughout the second half of 2022, risk assets delivered broad-based gains at the end of the year: global equities, high yield bonds and senior loans returned 9.9%, 4.3% and 2.6%, respectively. The fourth quarter got off to a rocky start with the failed UK budget proposal that roiled UK gilt markets and higher-than-expected September CPI in the U.S. The S&P 500 touched its year-to-date low, while the yields of U.S. high yield bonds soared to their year-to-date high, all in the first half of October. Risk asset prices then reversed course amid better-than-expected third-quarter earnings, perceived more dovish global central bank policy, and a cooling of U.S. inflation in both October and November. A rally lasted for most of the quarter, though markets came under renewed pressure in late December. The result of this was full-year returns of -1.06% for senior loans, -11.19% for high yield bonds, -16.2% for investment grade bonds and -19.44% for equities.

Interest rates were also volatile throughout the year. By mid-year the yields on the 2- and 10-year U.S. Treasury notes increased by 62 bps and 68 bps, respectively. At the end of the third quarter, the Fed's hawkish rhetoric weighed heavily on risk asset prices and pushed interest rates even higher with the yields on the 5- and 10-year U.S. Treasury notes rising by 105 bps and 81 bps, respectively. While the Federal Reserve hiked rates in the U.S. an additional 125 bps during the fourth quarter, ultimately yields on the 5- and 10-year U.S. Treasury notes were roughly unchanged.

OUTLOOK

Looking ahead to 2023, we increased the portfolio's allocation to private credit, high yield bonds and convertible bonds, with an emphasis on European opportunities trading at dislocated prices. At the end of the year, Oaktree's co-founder Howard Marks wrote of a sea change under way in markets. Given their meaningfully higher yields, we believe credit instruments of all kinds are potentially poised to deliver performance that can help investors accomplish their goals. We also believe that the high current yield and low U.S. dollar price could help protect against the volatility that could be seen in early 2023.

Past performance is no guarantee of future results.

2022 Annual Report
3

OAKTREE DIVERSIFIED INCOME FUND INC. (continued)

Areas of the portfolio such as structured and private credit continue to offer some of the most attractive risk-adjusted return potential in the portfolio, but we see upside potential over the next 12 months across all our strategies. We continue employing a conservative yet opportunistic approach, focused on credit fundamentals and having dry powder on hand to deploy into attractive opportunities in high-quality assets at dislocated prices, particularly as market activity picks up following the year-end period.

¹ Source: Oaktree. Yield reflects yield to worst. Yield to worst is a measure of the lowest possible yield that can be received on a bond that fully operates within the terms of its contract without defaulting.

OAKTREE DIVERSIFIED INCOME FUND INC.

Fund Performance (Unaudited)

AVERAGE ANNUAL TOTAL RETURNS

As of December 31, 2022	1 Year			Since Inception*
Class D Shares		7.03	%		-6.45	%
S&P/LSTA Leveraged Loan Index		-0.60	%		-0.24	%

* Class D Shares commenced operations on November 1, 2021.

The graph below illustrates a hypothetical investment of $10,000 in the Fund from the commencement of investment operations on November 1, 2021 to December 31, 2022 compared to the S&P/LSTA Leverage Loan Index.

The table and graphs do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Disclosure

All returns shown in USD.

S&P/LSTA (Loans Syndications and Trading Association) Leveraged Loan Index tracks the largest leveraged-loan-to-market facilities, considering market weightings, spreads and interest payments.

An index does not reflect any fees, expenses or sales charges. It is not possible to invest directly in an index. Index performance is shown for illustrative purposes only and does not predict or depict the performance of the Fund.

The Fund's portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security. There is no assurance that the Fund currently holds these securities. Please refer to the Schedule of Investments contained in this report for a full listing of fund holdings.

Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance includes the reinvestment of income, dividends and capital gain distributions. To obtain performance

2022 Annual Report
5

OAKTREE DIVERSIFIED INCOME FUND INC.

Fund Performance (Unaudited)

information current to the most recent month-end, please call 1-855-862-5873. Performance reflects management fees and other fund expenses.

An investor should consider the Fund's investment objectives, risks, charges and expenses carefully before investing.

The Fund is subject to investment risks, including the possible loss of principal invested. Investing involves risk, and principal loss is possible. The Adviser employs an active approach to allocation across multiple credit sectors, but there is no guarantee that such allocation techniques will produce the desired results. General interest rate fluctuations may have a substantial negative impact on the Fund's investments and investment opportunities, and, accordingly, may have a material adverse effect on the Fund's rate of return. The Fund may invest in foreign securities, including, but not limited to, risk related to exchange rate changes, political and economic upheaval, and relatively low market liquidity, all of which are magnified in emerging markets. The Fund intends to invest in illiquid investments which can face significant difficulties and delays associated with such transactions, and the Fund may be unable to sell other illiquid investments when it desires to do so, resulting in the Fund obtaining a lower price or being required to retain the investment. Investments in derivatives involve special risks including correlation, counterparty, liquidity, operational, accounting and tax risks. These risks, in certain cases, may be greater than the risks presented by more traditional investments.

High-yield debt securities rated below investment grade are commonly referred to as "junk bonds" and are considered speculative. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Bank loans (including senior loans) are usually rated below investment grade, and the market for bank loans may be subject to irregular trading activity, wide bid/ask spreads, restrictions on resale, and extended trade settlement periods. The Fund's investments in senior loans may be subject to greater levels of credit risk, call risk, settlement risk and liquidity risk than funds that do not invest in such securities. The Fund may invest in distressed securities of corporate issuers that are the subject of bankruptcy proceedings or otherwise in default as to the repayment of principal and/or interest or in significant risk of being in such default which is speculative and involves significant risk. Distressed Securities frequently do not produce income while they are outstanding and may require the Fund to bear certain extraordinary expenses in order to protect and recover its investment. The Fund may invest in loans that may be "covenant-lite," generally loans that do not have financial maintenance covenants, which can cause the Fund to have fewer rights against a borrower and may have a greater risk of loss on such investments.

The Fund may invest in a variety of mortgage related and other asset-backed securities, which are subject to greater price volatility in relation to interest rate movements. Residential mortgage backed securities (RMBS) may be subject to prepayment risk, meaning that securities may be paid off more quickly than originally anticipated and the Fund will have to invest the proceeds in securities with lower yields. Commercial mortgage backed securities (CMBS) may be subject to extension risk, meaning that the value of CMBS may be adversely affected in rising interest rate environments when payments on underlying mortgages do not occur as anticipated, resulting in the extension of the security's effective maturity and the related increase in interest rate sensitivity of a longer-term instrument. Investments in collateralized loan obligations (CLOs) carry additional risks including, but not limited to: 1) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; 2) the quality of the collateral may decline in value or default; 3) the possibility that the Fund may invest in CLOs that are subordinate to other classes; and 4) the complex structure of the security may produce disputes with the issuer or unexpected investment results.

Short term performance in particular is not a good indication of the Fund's future performance and an investment should not be made based solely on returns.

These views represent the opinions of Oaktree Fund Advisors, LLC and are not intended to predict or depict the performance of any investment. These views are as of the close of business on December 31, 2022 and subject to change based on subsequent developments.

OAKTREE DIVERSIFIED INCOME FUND INC.

Portfolio Characteristics (Unaudited)

December 31, 2022

ASSETS BY SECTOR¹
Corporate Credit
— Senior Loans (Syndicated)	23.6	%
— High Yield	18.6	%
— Emerging Markets	5.5	%
— Corporate Bonds	2.1	%
— Convertible Bonds	0.4	%
— Investment Grade	0.1	%
Total Corporate Credit	50.3	%
Securitized Credit
— Collateralized Loan Obligations	14.5	%
— Commercial Mortgage-Backed Securities	7.1	%
— Residential Mortgage-Backed Securities	1.9	%
— Other	0.8	%
Total Securitized Credit	24.3	%
Private Credit
— Senior Loans	21.7	%
— Preferred Stock	1.0	%
— Common Stock	0.1	%
— Warrants	0.2	%
Total Private Credit	23.0	%
Money Market Fund	2.4	%
Total	100.0	%
ASSETS BY GEOGRAPHY¹
North America	80.1	%
Europe Ex UK	8.9	%
UK	4.9	%
Asia Ex Japan	3.1	%
South America	2.9	%
Africa	0.1	%
Total	100.0	%

¹ Percentages are based on total market value of investments.

2022 Annual Report
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OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT – 56.3%
Senior Loans (Syndicated) – 25.6% (a)
Aerospace & Defense – 1.0%
AI Convoy Luxembourg Sarl, First Lien Tranche B Term Loan 3.50% (3 Month EURIBOR + 3.50%), 01/20/2027 (b)	Luxembourg	€	240,000	$	245,882
Cobham Ultra US Company Borrower LLC, First Lien Tranche B Term Loan 4.25% (6 Month LIBOR USD + 3.75%), 08/04/2029 (b)	United States	$	1,000,000		974,165
WP CPP Holdings LLC, First Lien Tranche B Term Loan 7.51% (3 Month LIBOR USD + 3.75%), 04/30/2025 (b)	United States		495,075		432,926
Total Aerospace & Defense					1,652,973
Airlines – 0.4%
Mileage Plus Holdings LLC, First Lien Tranche B Term Loan 10.00% (1 Month LIBOR USD + 5.25%), 06/20/2027 (b)	United States		181,800		187,322
United Airlines, Inc., First Lien Tranche B Term Loan 6.53% (3 Month LIBOR USD + 3.75%), 04/21/2028 (b)	United States		496,222		491,364
Total Airlines					678,686
Beverages – 0.8%
Pegasus Bidco BV 4.57% (3 Month EURIBOR + 4.25%), 07/12/2029 (b)	Netherlands	€	250,000		259,067
Pegasus Bidco BV, First Lien Tranche B Term Loan 8.52% (3 Month SOFR + 4.25%), 07/12/2029 (b)	Netherlands	$	500,000		485,000
Triton Water Holdings, Inc., First Lien Tranche B Term Loan 7.17% (3 Month US LIBOR + 3.50%), 03/31/2028 (b)	United States		742,482		693,013
Total Beverages					1,437,080
Biotechnology – 0.2%
Curium Bidco Sarl, First Lien Tranche B Term Loan 6.50% (1 Month LIBOR USD + 4.25%), 12/09/2027 (b)	Luxembourg		248,750		243,153
Building Products – 0.2%
Timber Servicios Empresariales SA, First Lien Tranche B Term Loan 4.75% (1 Month EURIBOR + 4.75%), 02/19/2029 (b)	Spain	€	300,000		245,067
Chemicals – 0.6%
Axalta Coating Systems US Holdings, Inc. 7.12% (1 Month SOFR + 3.00%), 12/20/2029 (b)	United States	$	250,000		250,563
INEOS Enterprises Holdings II Ltd., First Lien Tranche B Term Loan 3.25% (3 Month EURIBOR + 3.25%), 09/03/2026 (b)	United Kingdom	€	250,000		258,102
INEOS Finance PLC, First Lien Tranche B Term Loan 5.49% (3 Month EURIBOR + 2.00%), 11/03/2027 (b)	United Kingdom		247,403		258,409
INEOS Quattro, First Lien Tranche B Term Loan 4.24% (1 Month EURIBOR + 2.75%), 01/29/2026 (b)	United Kingdom		250,000		251,778
Total Chemicals					1,018,852

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Commercial Services & Supplies – 2.9%
Access CIG LLC, First Lien Term Loan 7.82% (3 Month LIBOR USD + 3.75%), 02/27/2025 (b)	United States	$	989,356	$	971,320
Allied Universal 5.24% (3 Month EURIBOR + 3.75%), 05/14/2028 (b)	Luxembourg	€	250,000		250,468
Allied Universal Holdco LLC, First Lien Tranche B Term Loan 7.82% (1 Month LIBOR USD + 3.75%), 05/14/2028 (b)	United States	$	990,000		942,485
Broom Holdings Bidco Ltd., First Lien Tranche B Term Loan 4.94% (3 Month EURIBOR + 3.75%), 08/23/2028 (b)	Ireland	€	250,000		254,231
Freshworld Holding III GMBH 4.65%, 10/02/2026 (c)	Germany		250,000		251,287
Garda World Security Corp., First Lien Tranche B Term Loan 8.93% (1 Month LIBOR USD + 4.25%), 10/30/2026 (b)	Canada	$	1,000,000		975,499
PECF USS Intermediate Holding III Corp., First Lien Tranche B Term Loan 8.32% (1 Month LIBOR USD + 4.25%), 12/15/2028 (b)	United States		865,714		725,096
Trugreen LP, First Lien Tranche B Term Loan 8.07% (1 Month LIBOR USD + 4.00%), 11/02/2027 (b)	United States		112,000		99,751
Total Commercial Services & Supplies					4,470,137
Communications Equipment – 0.3%
Sorenson Communications LLC, First Lien Tranche B Term Loan 9.17% (1 Month LIBOR USD + 5.50%), 03/17/2026 (b)	United States		472,222		452,301
Construction & Engineering – 1.2%
ADB Companies LLC, First Lien Term Loan 9.80% (1 Month LIBOR USD + 6.25%), 12/18/2025 (b) (d)	United States		1,290,844		1,268,513
Tiger Acquisition LLC, First Lien Tranche B Term Loan 7.32% (1 Month LIBOR USD + 3.25%), 06/01/2028 (b)	United States		744,347		708,573
Total Construction & Engineering					1,977,086
Construction Materials – 0.2%
Hunter Douglas, Inc., First Lien Tranche B Term Loan 7.86% (3 Month SOFR + 3.50%), 02/25/2029 (b)	Netherlands		304,850		269,765
Consumer Finance – 0.2%
American Auto Auction Group LLC, Second Lien Term Loan 12.30% (3 Month SOFR + 8.75%), 12/30/2028 (b)	United States		483,000		374,325
Containers & Packaging – 0.9%
Clydesdale Acquisition Holdings, Inc., First Lien Term Loan 8.36% (1 Month SOFR + 4.18%), 04/13/2029 (b)	United States		479,798		458,147
Proampac PG Borrower LLC, First Lien Tranche B Term Loan 7.96% (1 Month LIBOR USD + 3.75%), 11/03/2025 (b)	United States		990,000		950,603
Total Containers & Packaging					1,408,750

See Notes to Consolidated Financial Statements.

2022 Annual Report
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OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Distributors – 0.1%
Dealer Tire Financial LLC, First Lien Tranche B Term Loan 8.73% (1 Month SOFR + 4.50%), 12/14/2027 (b)	United States	$	161,212	$	159,842
Diversified Consumer Services – 1.3%
AI Aqua Merger Sub, Inc., First Lien Tranche B Term Loan 4.50% (1 Month SOFR + 4.00%), 07/30/2028 (b)	United States		425,926		402,145
AI Aqua Merger Sub, Inc., First Lien Delay Draw Term Loan 4.50% (1 Month SOFR + 4.00%), 07/30/2028 (b) (e)	United States		74,074		32,901
Houghton Mifflin Harcourt Co., First Lien Tranche B Term Loan 9.44% (1 Month SOFR + 5.25%), 04/07/2029 (b)	United States		498,750		475,837
Obol France 3 SAS, First Lien Tranche B Term Loan 6.36% (3 Month EURIBOR + 4.75%), 12/09/2025 (b)	France	€	250,000		236,056
PetVet Care Centers LLC, Second Lien Term Loan 10.32% (3 Month LIBOR USD + 6.25%), 02/15/2026 (b)	United States	$	500,000		461,875
Springer Nature Deutschland GmbH, First Lien Tranche B Term Loan 3.25% (3 Month EURIBOR + 3.25%), 08/14/2026 (b)	Germany	€	250,000		256,668
Verisure Holding AB, First Lien Tranche B Term Loan 3.47% (3 Month EURIBOR + 3.50%), 03/25/2028 (b)	Sweden		250,000		249,640
Total Diversified Consumer Services					2,115,122
Diversified Financial Services – 0.4%
Apex Group Treasury Ltd., First Lien Tranche B Term Loan 4.26% (3 Month EURIBOR + 4.00%), 07/27/2028 (b)	Bermuda		250,000		254,995
Nexus Buyer LLC, Second Lien Term Loan 10.32% (1 Month LIBOR USD + 6.25%), 11/01/2029 (b)	United States	$	376,000		349,368
Total Diversified Financial Services					604,363
Diversified Telecommunication Services – 0.7%
Altice France SA, First Lien Tranche B Term Loan 4.38% (3 Month EURIBOR + 3.00%), 01/31/2026 (b)	France	€	237,194		241,526
5.00% (3 Month EURIBOR + 3.00%), 10/28/2027 (b)	France		230,000		242,098
Intelsat Jackson Holdings SA, First Lien Tranche EXIT Term Loan 7.44% (6 Month SOFR + 4.25%), 02/01/2029 (b)	Luxembourg	$	439,466		425,183
Total Diversified Telecommunication Services					908,807
Electronic Equipment, Instruments & Components – 0.6%
LTI Holdings, Inc., First Lien Tranche B Term Loan 7.57% (3 Month LIBOR USD + 3.50%), 09/06/2025 (b)	United States		989,691		949,791

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Energy Equipment & Services – 0.4%
Artera Services LLC, First Lien Term Loan 7.17% (1 Month LIBOR USD + 3.50%), 03/06/2025 (b)	United States	$	742,481	$	610,695
Food & Staples Retailing – 0.2%
Bellis Acquisition Company PLC, First Lien Tranche B Term Loan 2.75% (3 Month EURIBOR + 2.75%), 02/16/2026 (b)	United Kingdom	€	250,000		253,413
Food Products – 0.4%
Shearer's Foods LLC, First Lien Tranche B Term Loan 7.57% (1 Month LIBOR USD + 3.50%), 09/23/2027 (b)	United States	$	698,924		668,347
Health Care Providers & Services – 1.2%
Baart Programs, Inc., First Lien Delay Draw Term Loan 8.75% (1 Month LIBOR USD + 5.00%), 06/11/2027 (b) (d) (e)	United States		719,614		402,794
Baart Programs, Inc., Second Lien Delay Draw Term Loan 12.57% (1 Month LIBOR USD + 8.50%), 06/11/2028 (b) (d) (e)	United States		1,246,000		545,529
Corgi BidCo, First Lien Term Loan 8.78% (3 Month SOFR + 5.00%), 10/13/2029 (b)	United States		362,000		340,099
HomeVi SASU, First Lien Tranche B Term Loan 4.24% (3 Month EURIBOR + 4.00%), 10/31/2026 (b)	France	€	250,000		240,415
Nidda Healthcare Holding Gmb, First Lien Tranche F Term Loan 3.50% (3 Month EURIBOR + 3.50%), 08/21/2026 (b)	Germany		250,000		246,314
Total Health Care Providers & Services					1,775,151
Health Care Technology – 1.3%
MedAssets Software Intermediate Holdings, Inc, Second Lien Term Loan 10.82% (1 Month LIBOR USD + 6.75%), 12/17/2029 (b)	United States	$	2,082,000		1,601,183
Polaris Newco LL, First Lien Tranche B Term Loan 8.38% (3 Month LIBOR USD + 4.00%), 06/04/2028 (b)	United States		209,667		191,845
Solera LL, First Lien Tranche B Term Loan 4.00% (3 Month EURIBOR + 4.00%), 06/04/2028 (b)	United States	€	247,500		247,882
Total Health Care Technology					2,040,910
Hotels, Restaurants & Leisure – 2.1%
Alterra Mountain Co., First Lien Tranche B Term Loan 7.57% (1 Month LIBOR USD + 3.50%), 08/17/2028 (b)	United States	$	932,436		923,405
Carnival Corp. 5.88% (6 Month LIBOR USD + 3.00%), 06/30/2025 (b)	United States		748,087		719,364
Entain Holdings Gibraltar Ltd., First Lien Tranche B Term Loan 7.51% (1 Month SOFR + 3.50%), 10/31/2029 (b)	Gibraltar		266,000		265,169

See Notes to Consolidated Financial Statements.

2022 Annual Report
11

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Flutter Financing BV, First Lien Tranche B Term Loan 7.01% (1 Month SOFR + 3.25%), 07/04/2028 (b)	Ireland	$	258,000	$	257,248
Flynn Restaurant Group LP, First Lien Tranche B Term Loan 8.32% (1 Month LIBOR USD + 4.25%), 12/03/2028 (b)	United States		992,500		933,362
Hurtigruten Group AS, First Lien Tranche B Term Loan 4.00% (3 Month EURIBOR + 4.00%), 02/22/2025 (b)	Norway	€	200,000		169,231
Whatabrands LLC, First Lien Tranche B Term Loan 7.32% (1 Month LIBOR USD + 3.25%), 08/03/2028 (b)	United States	$	87,000		84,281
Total Hotels, Restaurants & Leisure					3,352,060
Independent Power and Renewable Electricity Producers – 0.5%
Parkway Generation LLC, First Lien Tranche B Term Loan 8.95% (1 Month SOFR + 4.75%), 02/18/2029 (b)	United States		685,181		675,417
Parkway Generation LLC, First Lien Tranche C Term Loan 8.95% (1 Month LIBOR USD + 4.75%), 02/18/2029 (b)	United States		89,876		88,939
Insurance – 0.2%
Asurion, LLC, First Lien Tranche B10 Term Loan 7.65% (3 Month SOFR + 4.00%), 08/19/2028 (b)	United States		299,250		267,754
Leisure Products – 0.3%
Gibson Brands, Inc., First Lien Term Loan 9.13% (1 Month LIBOR USD + 5.00%), 08/13/2028 (b)	United States		396,000		293,040
Peloton Interactive, First Lien Term Loan 11.26% (1 Month SOFR + 6.50%), 05/17/2027 (b)	United States		148,628		146,584
Total Leisure Products					439,624
Machinery – 0.4%
Delachaux Group SA, First Lien Tranche B Term Loan 3.99% (3 Month EURIBOR + 3.75%), 04/16/2026 (b)	France	€	239,144		241,377
Restaurant Technologies, Inc., First Lien Tranche B Term Loan 7.80% (3 Month SOFR + 4.25%), 04/01/2029 (b)	United States	$	508,250		500,245
Total Machinery					741,622
Media – 0.7%
Directv Financing LLC, First Lien Term Loan 9.07% (1 Month LIBOR USD + 5.00%), 08/02/2027 (b)	United States		910,000		887,913
Learfield Communications LLC, First Lien Term Loan 7.33% (1 Month US LIBOR + 3.25%), 12/01/2023 (b)	United States		233,675		175,798
Virgin Media SFA Finance Ltd., First Lien Term Loan 5.47% (Secured Overnight Financing Rate + 3.25%), 01/15/2027 (b)	United Kingdom	£	200,000		224,715
Total Media					1,288,426

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Metals & Mining – 1.2%
American Rock Salt Company LLC, First Lien Tranche B Term Loan 8.07% (1 Month LIBOR USD + 4.00%), 06/11/2028 (b)	United States	$	500,000	$	471,875
PMHC II, Inc., First Lien Term Loan 8.49% (3 Month SOFR + 4.25%), 04/21/2029 (b)	United States		476,000		404,724
SCIH Salt Holdings, Inc., First Lien Tranche B Term Loan 8.41% (1 Month LIBOR USD + 4.00%), 03/16/2027 (b)	United States		915,280		892,068
Total Metals & Mining					1,768,667
Multiline Retail – 0.2%
Amer Sports Holding Oy, First Lien Tranche B Term Loan 4.25% (6 Month EURLIBOR + 4.50%), 03/30/2026 (b)	Finland	€	250,000		249,269
Personal Products – 0.2%
Olaplex, Inc., First Lien Tranche B Term Loan 7.92% (3 Month SOFR + 3.75%), 02/07/2028 (b)	United States	$	248,750		233,203
Pharmaceuticals – 0.3%
Antigua Bidco Ltd., First Lien Tranche B Term Loan 4.58% (3 Month EURIBOR + 4.00%), 08/07/2026 (b)	United Kingdom	€	250,000		258,814
Zentiva, First Lien Tranche B Term Loan 4.74% (3 Month EURIBOR + 3.75%), 09/30/2025 (b)	Czech Republic		250,000		258,245
Total Pharmaceuticals					517,059
Professional Services – 0.6%
DTI Holdco, Inc., First Lien Tranche B Term Loan 7.33% (3 Month SOFR + 4.75%), 04/26/2029 (b)	United States	$	500,000		461,875
Element Materials Technology Group US Holdings, Inc., First Lien Delay Draw Term Loan 7.90% (1 Month SOFR + 4.25%), 06/24/2029 (b)	United States		342,105		335,122
7.90% (3 Month SOFR + 4.25%), 06/24/2029 (b)	United States		157,895		154,671
Total Professional Services					951,668
Software – 2.5%
BYJU's Alpha, Inc., First Lien Tranche B Term Loan 10.70% (3 Month LIBOR USD + 6.00%), 11/24/2026 (b)	India		445,500		359,262
ION Corporate Solutions Finance Sarl, First Lien Tranche B Term Loan 4.94% (3 Month EURIBOR + 3.75%), 03/11/2028 (b)	Luxembourg	€	250,000		257,576
McAfee Corp., First Lien Tranche B Term Loan 4.20% (1 Month EURIBOR + 4.00%), 02/02/2029 (b)	United States		249,375		254,072
Mitchell International, Inc., First Lien Tranche B Term Loan 8.41% (3 Month LIBOR USD + 3.75%), 10/15/2028 (b)	United States	$	707,911		654,453

See Notes to Consolidated Financial Statements.

2022 Annual Report
13

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Planview Parent, Inc., First Lien Term Loan 7.67% (3 Month LIBOR USD + 4.00%), 12/17/2027 (b)	United States	$	160,809	$	150,184
Sitel Group SA, First Lien Tranche B Term Loan 5.25% (1 Month EURIBOR + 3.75%), 08/28/2028 (b)	United States	€	270,000		281,745
Skopima Consilio Parent LLC, First Lien Term Loan 8.07% (1 Month LIBOR USD + 4.00%), 05/17/2028 (b)	United States	$	929,307		881,512
TIBCO Software, Inc., First Lien Tranche B Term Loan 8.05% (3 Month SOFR + 4.50%), 09/30/2028 (b)	United States		193,000		172,011
8.15% (3 Month SOFR + 4.50%), 03/30/2029 (b)	United States		329,000		294,631
UKG, Inc.,, Second Lien Term Loan 9.00% (3 Month LIBOR USD + 5.25%), 05/03/2027 (b)	United States		500,000		461,375
Total Software					3,766,821
Specialty Retail – 0.4%
CD&R Firefly Bidco Ltd., First Lien Tranche B1 Term Loan 5.80% (1 Month SONIA + 4.75%), 06/21/2025 (b)	United Kingdom	£	250,000		278,395
Great Outdoors Group LLC, First Lien Tranche B Term Loan 7.82% (1 Month LIBOR USD + 3.75%), 03/05/2028 (b)	United States	$	500,000		481,563
Total Specialty Retail					759,958
Technology Hardware, Storage & Peripherals – 0.5%
Castle US Holding Corp., First Lien Tranche B Term Loan 5.24% (3 Month EURIBOR + 3.75%), 01/29/2027 (b)	United States	€	247,462		178,804
8.07% (1 Month LIBOR USD + 4.00%), 01/29/2027 (b)	United States	$	991,614		617,280
Total Senior Loans (Syndicated)					40,211,187
High Yield – 21.8%
Aerospace & Defense – 0.7%
Bombardier, Inc. 7.13%, 06/15/2026 (f)	Canada		240,000		233,288
Spirit AeroSystems, Inc. 7.50%, 04/15/2025 (f)	United States		275,000		272,335
TransDigm, Inc. 6.25%, Perpetual (f)	United States		95,000		93,897
5.50%, 11/15/2027	United States		360,000		338,789
Total Aerospace & Defense					938,309
Airlines – 0.1%
Hawaiian Brand Intellectual Property Ltd. 5.75%, 01/20/2026 (f)	United States		150,000		136,035
Auto Components – 0.2%
Dana Financing Luxembourg Sarl 3.00%, 07/15/2029	United States	€	200,000		164,709
Renk AG 5.75%, 07/15/2025	Germany		100,000		100,753
Total Auto Components					265,462

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Beverages – 0.1%
Primo Water Holdings, Inc. 3.88%, 10/31/2028	Canada	€	100,000	$	95,405
Building Products – 0.1%
Standard Industries, Inc. 2.25%, 11/21/2026	United States		200,000		183,978
Chemicals – 0.7%
Diamond BC BV 4.63%, 10/01/2029 (f)	United States	$	245,000		196,931
EverArc Escrow Sarl 5.00%, 10/30/2029 (f)	United States		225,000		184,793
Nufarm Australia Ltd. 5.00%, 01/27/2030 (f)	Australia		445,000		386,189
Olympus Water US Holding Corp. 4.25%, 10/01/2028 (f)	United States		280,000		227,683
6.25%, 10/01/2029 (f)	United States		60,000		45,630
Total Chemicals					1,041,226
Commercial Services & Supplies – 1.8%
Allied Universal Holdco LLC 4.63%, 06/01/2028 (f)	United States		405,000		335,259
GFL Environmental, Inc. 4.75%, 06/15/2029 (f)	Canada		265,000		232,279
Hurricane Finance PLC 8.00%, 10/15/2025	United Kingdom	£	100,000		108,202
Iron Mountain, Inc. 5.00%, 07/15/2028 (f)	United States	$	435,000		391,478
LABL, Inc. 5.88%, 11/01/2028 (f)	United States		445,000		388,549
Prime Security Services Borrower LLC 6.25%, 01/15/2028 (f)	United States		485,000		442,427
TMS International Corp. 6.25%, 04/15/2029 (f)	United States		330,000		236,843
WASH Multifamily Acquisition, Inc. 5.75%, 04/15/2026 (f)	United States		430,000		405,772
Total Commercial Services & Supplies					2,540,809
Communications Equipment – 0.3%
CommScope Technologies LLC 6.00%, 06/15/2025 (f)	United States		260,000		237,136
CommScope, Inc. 6.00%, 03/01/2026 (f)	United States		95,000		87,870
4.75%, 09/01/2029 (f)	United States		75,000		60,606
Total Communications Equipment					385,612
Construction & Engineering – 0.5%
Great Lakes Dredge & Dock Corp. 5.25%, 06/01/2029 (f)	United States		340,000		264,758
Pike Corp. 5.50%, 09/01/2028 (f)	United States		440,000		385,383
Total Construction & Engineering					650,141

See Notes to Consolidated Financial Statements.

2022 Annual Report
15

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Consumer Finance – 0.1%
FirstCash, Inc. 5.63%, 01/01/2030 (f)	United States	$	220,000	$	196,100
Containers & Packaging – 0.6%
Ardagh Packaging Finance PLC 5.25%, 08/15/2027 (f)	United States		260,000		194,824
Graham Packaging Company, Inc. 7.13%, 08/15/2028 (f)	United States		285,000		238,252
Intelligent Packaging Limited Finco, Inc. 6.00%, Perpetual (f)	Canada		435,000		351,685
Trivium Packaging Finance BV 3.75%, 08/15/2026	Netherlands	€	100,000		98,207
Total Containers & Packaging					882,968
Diversified Consumer Services – 0.2%
AA Bond Company Ltd. 6.50%, 01/31/2026	United Kingdom	£	100,000		97,045
Verisure Midholding AB 5.25%, 02/15/2029	Sweden	€	100,000		85,903
Total Diversified Consumer Services					182,948
Diversified Telecommunication Services – 1.3%
Altice Financing SA 3.00%, 01/15/2028	Luxembourg		200,000		169,720
Altice France SA 4.13%, 01/15/2029	France		100,000		82,027
Cogent Communications Group, Inc. 7.00%, 06/15/2027 (f)	United States	$	210,000		206,047
eircom Finance DAC 3.50%, 05/15/2026	Ireland	€	200,000		193,844
Frontier Communications Holdings LLC 6.75%, 05/01/2029 (f)	United States	$	155,000		128,438
8.75%, 05/15/2030 (f)	United States		255,000		259,767
Iliad Holding SASU 5.63%, 10/15/2028	France	€	200,000		194,871
Level 3 Financing, Inc. 4.25%, 07/01/2028 (f)	United States	$	330,000		260,693
Lorca Telecom Bondco SA 4.00%, 09/18/2027	Spain	€	200,000		192,413
Telecom Italia SpA 4.00%, 04/11/2024	Italy		200,000		209,245
Ziggo Bond Company BV 3.38%, 02/28/2030	Netherlands		100,000		77,752
Total Diversified Telecommunication Services					1,974,817
Electrical Equipment – 0.2%
APX Group, Inc. 6.75%, 02/15/2027 (f)	United States	$	290,000		279,589
Electronic Equipment, Instruments & Components – 0.1%
Centurion Bidco SpA 5.88%, 09/30/2026	Italy	€	100,000		92,874

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Energy Equipment & Services – 0.2%
Precision Drilling Corp. 7.13%, 01/15/2026 (f)	Canada	$	245,000	$	237,425
Entertainment – 0.2%
Banijay Entertainment SASU 3.50%, 03/01/2025	France	€	200,000		202,224
Pinewood Finance Co Ltd. 3.63%, 11/15/2027	United Kingdom	£	100,000		106,800
Total Entertainment					309,024
Equity Real Estate Investment Trusts (REITs) – 0.2%
American Finance Trust, Inc. 4.50%, 09/30/2028 (f)	United States	$	395,000		290,906
Food & Staples Retailing – 0.2%
Performance Food Group, Inc. 5.50%, 10/15/2027 (f)	United States		335,000		316,673
Food Products – 0.3%
Post Holdings, Inc. 5.63%, 01/15/2028 (f)	United States		430,000		405,406
Gas Utilities – 0.1%
CQP Holdco LP 5.50%, 06/15/2031 (f)	United States		165,000		144,438
Health Care Equipment & Supplies – 0.2%
Mozart Debt Merger Sub, Inc. 5.25%, 10/01/2029 (f)	United States		395,000		314,441
Health Care Providers & Services – 1.1%
Acadia Healthcare Company, Inc. 5.50%, 07/01/2028 (f)	United States		215,000		204,272
Avantor Funding, Inc. 3.88%, 07/15/2028	United States	€	100,000		99,204
CAB Selas 3.38%, 02/01/2028	France		200,000		172,723
CHS/Community Health Systems, Inc. 5.63%, 03/15/2027 (f)	United States	$	335,000		287,859
MEDNAX, Inc. 5.38%, 02/15/2030 (f)	United States		295,000		256,772
ModivCare Escrow Issuer, Inc. 5.00%, 10/01/2029 (f)	United States		345,000		291,387
Radiology Partners, Inc. 9.25%, 02/01/2028 (f)	United States		800,000		450,346
Total Health Care Providers & Services					1,762,563
Health Care Technology – 0.1%
MPH Acquisition Holdings LLC 5.50%, 09/01/2028 (f)	United States		160,000		125,142
Health Facilities – 0.2%
Tenet Healthcare Corp. 6.13%, 10/01/2028 (f)	United States		285,000		255,768

See Notes to Consolidated Financial Statements.

2022 Annual Report
17

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Hotels, Restaurants & Leisure – 1.5%
Bloomin' Brands, Inc. 5.13%, 04/15/2029 (f)	United States	$	220,000	$	185,328
Carnival Corp. 5.75%, 03/01/2027 (f)	United States		490,000		350,727
10.50%, 06/01/2030 (f)	United States		80,000		65,180
Cirsa Finance International Sarl 4.50%, 03/15/2027	Spain	€	100,000		92,772
Everi Holdings, Inc. 5.00%, 07/15/2029 (f)	United States	$	345,000		296,792
Fertitta Entertainment LLC 6.75%, 01/15/2030 (f)	United States		160,000		129,356
Gamma Bidco SpA 5.13%, 07/15/2025	Italy	€	100,000		101,778
Hilton Grand Vacations Borrower Escrow LLC 5.00%, 06/01/2029 (f)	United States	$	215,000		185,174
Legends Hospitality Holding Company LLC 5.00%, Perpetual (f)	United States		440,000		392,150
SeaWorld Parks & Entertainment, Inc. 5.25%, 08/15/2029 (f)	United States		265,000		231,080
TUI Cruises GmbH 6.50%, 05/15/2026	Germany	€	100,000		89,784
Total Hotels, Restaurants & Leisure					2,120,121
Household Durables – 0.1%
Weekley Homes LLC 4.88%, 09/15/2028 (f)	United States	$	185,000		155,778
Household Products – 0.1%
Energizer Gamma Acquisition BV 3.50%, 06/30/2029	United States	€	100,000		86,018
Insurance – 0.2%
AssuredPartners, Inc. 5.63%, 01/15/2029 (f)	United States	$	250,000		206,085
HUB International Ltd. 7.00%, 05/01/2026 (f)	United States		190,000		186,394
Total Insurance					392,479
IT Services – 0.7%
Ahead DB Holdings LLC 6.63%, 05/01/2028 (f)	United States		340,000		273,714
Sabre GLBL, Inc. 7.38%, 09/01/2025 (f)	United States		150,000		144,404
VM Consolidated, Inc. 5.50%, 04/15/2029 (f)	United States		655,000		577,749
Total IT Services					995,867
Leisure Products – 0.0%
Vista Outdoor, Inc. 4.50%, 03/15/2029 (f)	United States		65,000		47,810
Machinery – 0.3%
Redwood Star Merger Sub, Inc. 8.75%, 04/01/2030 (f)	United States		500,000		394,980

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Media – 1.3%
CCO Holdings LLC 6.38%, 09/01/2029 (f)	United States	$	140,000	$	131,833
CSC Holdings LLC 4.13%, 12/01/2030 (f)	United States		435,000		307,995
Directv Financing LLC 5.88%, 08/15/2027 (f)	United States		435,000		390,003
DISH DBS Corp. 5.25%, 12/01/2026 (f)	United States		195,000		164,621
5.75%, 12/01/2028 (f)	United States		25,000		20,000
Gray Television, Inc. 4.75%, 10/15/2030 (f)	United States		160,000		116,000
iHeartCommunications, Inc. 6.38%, 05/01/2026	United States		95,000		87,550
5.25%, 08/15/2027 (f)	United States		360,000		305,519
Scripps Escrow II, Inc. 5.38%, 01/15/2031 (f)	United States		130,000		104,365
Univision Communications, Inc. 6.63%, 06/01/2027 (f)	United States		145,000		140,206
Virgin Media Vendor Financing Notes III DAC 4.88%, 07/15/2028	United Kingdom	£	100,000		98,042
Total Media					1,866,134
Metals & Mining – 0.7%
Arconic Corp. 6.13%, 02/15/2028 (f)	United States	$	425,000		399,494
Constellium SE 5.63%, 06/15/2028 (f)	United States		260,000		240,713
Mineral Resources Ltd. 8.13%, 05/01/2027 (f)	Australia		60,000		60,519
8.50%, 05/01/2030 (f)	Australia		300,000		304,499
Total Metals & Mining					1,005,225
Oil Gas Transportation & Distribution – 0.1%
Suburban Propane Partners LP 5.00%, 06/01/2031 (f)	United States		220,000		187,277
Oil, Gas & Consumable Fuels – 0.6%
CITGO Petroleum Corp. 7.00%, 06/15/2025 (f)	United States		360,000		351,965
CVR Energy, Inc. 5.25%, 02/15/2025 (f)	United States		305,000		281,053
Hess Midstream Operations LP 5.63%, 02/15/2026 (f)	United States		140,000		136,600
5.13%, 06/15/2028 (f)	United States		235,000		217,720
Total Oil, Gas & Consumable Fuels					987,338
Paper & Forest Products – 0.3%
Mercer International, Inc. 5.50%, 01/15/2026	Germany		440,000		417,520
Personal Products – 0.6%
BellRing Brands, Inc. 7.00%, 03/15/2030 (f)	United States		365,000		351,687

See Notes to Consolidated Financial Statements.

2022 Annual Report
19

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Coty, Inc. 5.00%, 04/15/2026 (f)	United States	$	215,000	$	204,177
Edgewell Personal Care Co. 5.50%, 06/01/2028 (f)	United States		355,000		332,635
Total Personal Products					888,499
Pharmaceuticals – 0.3%
Bausch Health Companies, Inc. 6.13%, 02/01/2027 (f)	United States		190,000		131,267
4.88%, 06/01/2028 (f)	United States		240,000		153,099
Cheplapharm Arzneimittel GmbH 4.38%, 01/15/2028	Germany	€	100,000		94,391
Total Pharmaceuticals					378,757
Professional Services – 0.1%
Summer BC Holdco B SARL 5.75%, 10/31/2026	Luxembourg		100,000		91,657
Real Estate Management & Development – 1.8%
Cushman & Wakefield US Borrower LLC 6.75%, 05/15/2028 (f)	United States	$	53,000		50,675
Hunt Companies, Inc. 5.25%, 04/15/2029 (f)	United States		360,000		303,052
OWS Cre Funding I LLC 9.02%, 2021-MARG (1 Month LIBOR USD + 4.90%), 09/01/2023 (b) (f)	United States		2,500,000		2,394,137
Samhallsbyggnadsbolaget i Norden AB 2.88% (5 Year Swap Rate EUR + 3.22%), Perpetual (b)	Sweden	€	100,000		42,637
Total Real Estate Management & Development					2,790,501
Road & Rail – 0.1%
The Hertz Corp. 4.63%, 12/01/2026 (f)	United States	$	200,000		167,750
Software – 0.9%
Acuris Finance US, Inc. 5.00%, 05/01/2028 (f)	United States		395,000		317,159
Brunello Bidco SpA 3.50%, 02/15/2028	Italy	€	100,000		89,893
Castor SpA 7.30% (3 Month EURIBOR + 5.25%), 02/15/2029 (b) (g) (h)	Italy		200,000		208,299
Cedacri Mergeco SPA 6.39% (3 Month EURIBOR + 4.63%), 05/15/2028 (b)	Italy		100,000		99,795
Condor Merger Sub, Inc. 7.38%, 02/15/2030 (f)	United States	$	100,000		80,582
NCR Corp. 5.13%, 04/15/2029 (f)	United States		15,000		12,572
6.13%, 09/01/2029 (f)	United States		405,000		379,347
Total Software					1,187,647
Specialty Retail – 0.4%
Academy Ltd. 6.00%, 11/15/2027 (f)	United States		420,000		402,698

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
eG Global Finance PLC 6.25%, 10/30/2025	United Kingdom	€	100,000	$	94,349
Total Specialty Retail					497,047
Technology Hardware, Storage & Peripherals – 0.1%
Xerox Holdings Corp. 5.50%, 08/15/2028 (f)	United States	$	180,000		144,342
Telecommunication Services – 0.6%
Cablevision Lightpath LLC 5.63%, 09/15/2028 (f)	United States		415,000		309,062
Consolidated Communications, Inc. 6.50%, 10/01/2028 (f)	United States		380,000		296,233
Frontier Communications Holdings LLC 5.00%, 05/01/2028 (f)	United States		290,000		253,463
Total Telecommunication Services					858,758
Textiles, Apparel & Luxury Goods – 0.2%
Afflelou SAS 4.25%, 05/19/2026	France	€	100,000		95,762
Crocs, Inc. 4.25%, 03/15/2029 (f)	United States	$	220,000		186,643
Total Textiles, Apparel & Luxury Goods					282,405
Thrifts & Mortgage Finance – 0.1%
Nationstar Mortgage Holdings, Inc. 6.00%, 01/15/2027 (f)	United States		140,000		125,521
5.75%, 11/15/2031 (f)	United States		120,000		93,456
Trading Companies & Distributors – 0.5%
Fortress Transportation and Infrastructure Investors LLC 6.50%, 10/01/2025 (f)	United States		16,000		15,071
5.50%, 05/01/2028 (f)	United States		350,000		299,051
Loxam SAS 3.75%, 07/15/2026	France	€	100,000		96,945
Unifrax Escrow Issuer Corp. 5.25%, 09/30/2028 (f)	United States	$	450,000		362,696
Total Trading Companies & Distributors					773,763
Utility – 0.2%
Calpine Corp. 5.13%, 03/15/2028 (f)	United States		350,000		313,015
Wireless Telecommunication Services – 0.2%
Matterhorn Telecom SA 4.00%, 11/15/2027	Luxembourg	€	200,000		196,234
Vodafone Group PLC 3.00% (5 Year Swap Rate EUR + 3.48%), 08/27/2080 (b)	United Kingdom		200,000		171,404
Total Wireless Telecommunication Services					367,638
Total High Yield					31,625,362

See Notes to Consolidated Financial Statements.

2022 Annual Report
21

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Emerging Markets – 6.2%
Airlines – 0.5%
Azul Investments LLP 7.25%, 06/15/2026	Brazil	$	1,130,000	$	692,620
Chemicals – 0.4%
Braskem Idesa SAPI 6.99%, 02/20/2032	Mexico		1,000,000		715,713
Construction Materials – 0.1%
Cemex SAB de CV 5.13% (5 Year CMT Rate + 4.53%), Perpetual (b)	Mexico		200,000		185,057
Diversified Telecommunication Services – 0.6%
Telecom Argentina SA 8.00%, 07/18/2026	Argentina		1,000,000		947,558
Electric Utilities – 0.1%
Pampa Energia SA 9.13%, 04/15/2029	Argentina		150,000		137,969
Hotels, Restaurants & Leisure – 0.0%
Grupo Posadas SAB de CV 4.00%, .00, 12/30/2027 (i)	Mexico		20,000		15,713
Independent Power and Renewable Electricity Producers – 0.6%
Genneia SA 8.75%, 09/02/2027 (f)	Argentina		40,000		39,150
8.75%, 09/02/2027	Argentina		919,000		899,471
Metals & Mining – 0.9%
Vedanta Resources Finance II PLC 13.88%, 01/21/2024	India		1,600,000		1,395,427
Oil, Gas & Consumable Fuels – 1.0%
CITGO Holding, Inc. 9.25%, 08/01/2024	United States		690,000		689,814
Kosmos Energy Ltd. 7.13%, 04/04/2026	United States		200,000		170,816
YPF SA 2.50%, 06/30/2029 (j)	Argentina		758,000		607,035
1.50%, 09/30/2033 (j)	Argentina		55,000		36,564
Total Oil, Gas & Consumable Fuels					1,504,229
Real Estate Management & Development – 2.0%
CIFI Holdings Group Company Ltd. 11.58% (5 Year CMT Rate + 8.57%), Perpetual (b)	China		450,000		81,225
6.45%, 11/07/2024	China		200,000		53,544
6.00%, 07/16/2025	China		400,000		105,116
Country Garden Holdings Company Ltd. 7.25%, 04/08/2026	China		600,000		383,016
4.80%, 08/06/2030	China		200,000		106,878
RKPF Overseas Ltd. 5.90%, 03/05/2025	China		500,000		418,750
6.00%, 09/04/2025	China		500,000		405,000
Shimao Group Holdings Ltd. 6.13%, 02/21/2024	China		370,000		69,888

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
5.60%, 07/15/2026 (n)	China	$	400,000	$	75,993
5.20%, 01/16/2027	China		1,210,000		229,900
4.60%, 07/13/2030	China		200,000		36,593
3.45%, 01/11/2031	China		400,000		74,805
Shui On Development Holding Ltd. 5.50%, 06/29/2026	China		200,000		161,680
Sino-Ocean Land Treasure IV Ltd. 3.25%, 05/05/2026	China		200,000		105,367
4.75%, 08/05/2029	China		410,000		214,430
4.75%, 01/14/2030	China		400,000		205,872
Total Real Estate Management & Development					2,728,057
Total Emerging Markets					9,260,964
Corporate Bonds – 2.6%
Aerospace & Defense – 0.2%
Spirit AeroSystems, Inc. 9.38%, 11/30/2029 (f)	United States		235,000		247,678
Auto Components – 0.1%
IHO Verwaltungs GmbH 3.63%, 4.38, 05/15/2025 (i)	Germany	€	160,000		156,709
Biotechnology – 0.1%
Grifols SA 3.20%, 05/01/2025	Spain		160,000		158,633
Containers & Packaging – 0.3%
Ardagh Packaging Finance PLC 2.13%, 08/15/2026	United States		180,000		161,663
Fiber Bidco SpA 7.95% (3 Month EURIBOR + 6.00%), 10/25/2027 (b) (f)	Italy		100,000		107,148
Silgan Holdings, Inc. 3.25%, 03/15/2025	United States		150,000		156,135
Total Containers & Packaging					424,946
Diversified Consumer Services – 0.1%
Verisure Holding AB 3.88%, 07/15/2026	Sweden		100,000		97,278
Diversified Telecommunication Services – 0.2%
Altice France SA 3.38%, 01/15/2028	France		100,000		81,027
Telefonica Europe BV 4.38% (EUSA6 + 4.11%), Perpetual (b)	Spain		200,000		204,763
Total Diversified Telecommunication Services					285,790
Health Care Equipment & Supplies – 0.2%
Limacorporate SpA 5.51% (3 Month EURIBOR + 3.75%), 08/15/2023 (b)	Italy		250,000		261,101
Health Care Providers & Services – 0.1%
Nidda Healthcare Holding GmbH 7.50%, 08/21/2026	Germany		100,000		102,557

See Notes to Consolidated Financial Statements.

2022 Annual Report
23

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Hotels, Restaurants & Leisure – 0.2%
Aramark International Finance Sarl 3.13%, 04/01/2025	United States	€	100,000	$	103,030
Playtech PLC 4.25%, 03/07/2026	United Kingdom		100,000		101,423
Total Hotels, Restaurants & Leisure					204,453
Household Durables – 0.2%
Shea Homes LP 4.75%, 02/15/2028	United States	$	345,000		301,767
IT Services – 0.2%
Mooney Group SpA 5.94% (3 Month EURIBOR + 3.88%), 12/17/2026 (b)	Italy	€	250,000		254,398
Life Sciences Tools & Services – 0.1%
IQVIA, Inc. 2.88%, 06/15/2028	United States		165,000		158,078
Media – 0.2%
Telenet Finance Luxembourg Notes Sarl 3.50%, 03/01/2028	Belgium		100,000		96,974
Virgin Media Secured Finance PLC 5.25%, 05/15/2029	United Kingdom	£	100,000		104,142
Total Media					201,116
Mortgage Real Estate Investment Trusts (REITs) – 0.2%
HAT Holdings I LLC 3.38%, 06/15/2026 (f)	United States	$	415,000		361,129
Software – 0.1%
Cloud Software Group Holdings, Inc. 6.50%, 03/31/2029 (f)	United States		210,000		177,254
Textiles, Apparel & Luxury Goods – 0.1%
Hanesbrands Finance Luxembourg S.C.A 3.50%, 06/15/2024	United States	€	150,000		156,031
Total Corporate Bonds					3,548,918
Convertible Bonds – 0.0%
Airlines – 0.0%
JetBlue Airways Corp. 0.50%, 04/01/2026	United States	$	21,000		15,416
Biotechnology – 0.0%
Ionis Pharmaceuticals, Inc. 0.13%, 12/15/2024	United States		21,000		19,175
Entertainment – 0.0%
Sea Ltd. 0.25%, 09/15/2026	Singapore		34,000		25,075
Spotify USA, Inc. 0.00%, 03/15/2026	United States		35,000		28,350
Total Entertainment					53,425
Health Care Equipment & Supplies – 0.0%
NuVasive, Inc. 0.38%, 03/15/2025	United States		24,000		21,084

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Hotels, Restaurants & Leisure – 0.0%
Accor SA 0.70%, 12/07/2027	France	€	35,000	$	15,479
Airbnb, Inc. 0.00%, 03/15/2026	United States	$	31,000		25,591
Shake Shack, Inc. 0.00%, 03/01/2028	United States		29,000		19,376
Total Hotels, Restaurants & Leisure					60,446
Interactive Media & Services – 0.0%
Snap, Inc. 0.13%, 03/01/2028 (f)	United States		36,000		24,210
IT Services – 0.0%
Block, Inc. 0.00%, 05/01/2026	United States		20,000		16,290
Cloudflare, Inc. 0.00%, 08/15/2026	United States		13,000		10,660
DigitalOcean Holdings, Inc. 0.00%, 12/01/2026	United States		27,000		20,318
Okta, Inc. 0.38%, 06/15/2026	United States		20,000		16,900
Perficient, Inc. 0.13%, 11/15/2026	United States		19,000		14,773
Shift4 Payments, Inc. 0.50%, 08/01/2027	United States		20,000		16,930
Shopify, Inc. 0.13%, 11/01/2025	Canada		30,000		25,763
Wix.com Ltd. 0.00%, 08/15/2025	United States		19,000		16,093
Worldline SA 0.00%, 07/30/2025	France	€	19,100		21,914
Total IT Services					159,641
Media – 0.0%
Cable One, Inc. 0.00%, 03/15/2026	United States	$	33,000		26,087
Liberty Broadband Corp. 2.75%, 09/30/2050 (f)	United States		27,000		26,364
Total Media					52,451
Personal Products – 0.0%
The Beauty Health Co. 1.25%, 10/01/2026 (f)	United States		23,000		17,503
Professional Services – 0.0%
Ceridian HCM Holding, Inc. 0.25%, 03/15/2026	United States		21,000		18,512
Software – 0.0%
Alarm.com Holdings, Inc. 0.00%, 01/15/2026	United States		21,000		17,155
Bentley Systems, Inc. 0.38%, 07/01/2027	United States		28,000		22,932

See Notes to Consolidated Financial Statements.

2022 Annual Report
25

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
CORPORATE CREDIT (continued)
Blackline, Inc. 0.00%, 03/15/2026	United States	$	17,000	$	14,567
Coupa Software, Inc. 0.38%, 06/15/2026	United States		21,000		20,297
DocuSign, Inc. 0.00%, 01/15/2024	United States		34,000		32,130
Dropbox, Inc. 0.00%, 03/01/2026	United States		17,000		15,436
Envestnet, Inc. 0.75%, 08/15/2025	United States		35,000		31,763
Nutanix, Inc. 0.25%, 10/01/2027	United States		24,000		20,196
Rapid7, Inc. 0.25%, 03/15/2027	United States		16,000		12,576
Splunk, Inc. 1.13%, 06/15/2027	United States		28,000		23,766
Unity Software, Inc. 0.00%, 11/15/2026	United States		24,000		18,084
Total Software					228,902
Technology Hardware, Storage & Peripherals – 0.0%
Western Digital Corp. 1.50%, 02/01/2024	United States		38,000		36,385
Total Convertible Bonds					707,150
Investment Grade – 0.1%
Other – 0.1%
Westlake Automobile Receivables Trust 1.23%, 2021-2A, Class D, 12/15/2026 (f)	United States		164,000		149,205
TOTAL CORPORATE CREDIT (Cost $96,625,441)					85,502,786
STRUCTURED CREDIT – 27.3% (a)
Collateralized Loan Obligations – 16.4% (a)
Anchorage Capital CLO Ltd. 11.71%, 2016-8A, Class ER2 (3 Month LIBOR USD + 7.35%), 10/27/2034 (b) (f)	Cayman Islands		1,500,000		1,377,861
7.95%, 2020-16A, Class DR (3 Month LIBOR USD + 3.72%), 01/19/2035 (b) (f)	Cayman Islands		1,500,000		1,406,091
11.58%, 2020-16A, Class ER (3 Month LIBOR USD + 7.35%), 01/19/2035 (b) (f)	Cayman Islands		1,000,000		913,668
Anchorage Credit Funding 7 Ltd. 0.00%, 2019-7A, Class SUB1, 04/25/2037 (f)	Cayman Islands		1,000,000		506,382
Anchorage Credit Funding Ltd. 6.85%, 2019-7A, Class E, 04/25/2037 (f)	Cayman Islands		1,000,000		783,769
Columbia Cent CLO Ltd. 10.70%, 2018-28A, Class D (3 Month LIBOR USD + 6.17%), 11/07/2030 (b) (f)	Cayman Islands		1,000,000		719,746
Dryden 113 CLO Ltd. 0.00%, 2022-113A, Class INC, 10/20/2035 (f)	Jersey		1,000,000		700,000
Dryden 27 R Euro CLO 2017 DAC 7.24%, 2017-27X, Class ER (3 Month EURIBOR + 5.86%), 04/15/2033 (b)	Ireland	€	1,000,000		853,730

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
STRUCTURED CREDIT (continued)
Elevation CLO Ltd. 11.51%, 2021-12A, Class E (3 Month LIBOR USD + 7.27%), 04/20/2032 (b) (f)	Cayman Islands	$	378,000	$	321,980
11.44%, 2021-14A, Class E (3 Month LIBOR USD + 7.20%), 10/20/2034 (b) (f)	Cayman Islands		2,000,000		1,729,599
Harvest CLO XXVI 7.50%, 26A, Class E (3 Month EURIBOR + 6.12%), 01/15/2034 (b) (f)	Ireland	€	500,000		435,090
ICG US CLO Ltd. 7.84%, 2020-1A, Class DR (3 Month LIBOR USD + 3.60%), 01/20/2035 (b) (f)	Cayman Islands	$	1,000,000		890,358
11.69%, 2020-1A, Class ER (3 Month LIBOR USD + 7.45%), 01/20/2035 (b) (f)	Cayman Islands		1,000,000		895,428
LUXE Trust 7.57%, 2021-TRIP, Class F (1 Month LIBOR USD + 3.25%), 10/15/2038 (b) (f)	United States		550,000		500,490
Marble Point CLO Ltd. 11.61%, 2021-4A, Class E (3 Month LIBOR USD + 7.29%), 01/22/2035 (b) (f)	Cayman Islands		2,000,000		1,702,642
Monroe Capital MML CLO XIII Ltd. 12.68%, 2022-1A, Class E (3 Month SOFR + 8.32%), 02/24/2034 (b) (f)	United States		1,000,000		885,957
OAK Hill European Credit Partners V Designated Activity Co. 7.83%, 2016-5A, Class ER (3 Month EURIBOR + 6.37%), 01/21/2035 (b) (f)	Ireland	€	1,750,000		1,524,219
10.33%, 2016-5A, Class FR (3 Month EURIBOR + 8.87%), 01/21/2035 (b) (f)	Ireland		1,000,000		805,250
Palmer Square European CLO 7.82%, 2022-1A, Class E (3 Month EURIBOR + 6.36%), 01/21/2035 (b) (f)	Ireland		1,200,000		1,043,675
10.31%, 2022-1A, Class F (3 Month EURIBOR + 8.85%), 01/21/2035 (b) (f)	Ireland		1,750,000		1,412,594
Penta CLO 8.03%, 2021-10X, Class E (3 Month EURIBOR + 6.23%), 11/20/2034 (b)	Ireland		500,000		431,033
Rockford Tower Europe DAC 7.42%, 2021-1A, Class E (3 Month EURIBOR + 5.96%), 04/20/2034 (b) (f)	Ireland		500,000		426,070
SOUND POINT CLO Ltd. 10.68%, 2015-1RA, Class E (3 Month LIBOR USD + 6.60%), 04/15/2030 (b) (f)	Cayman Islands	$	275,000		184,536
Toro European CLO 7.68%, 3X, Class ERR (3 Month EURIBOR + 6.30%), 07/15/2034 (b)	Ireland	€	1,500,000		1,242,314
Trimaran Cavu Ltd. 11.56%, 2021-3A, Class E (3 Month LIBOR USD + 7.37%), 01/18/2035 (b) (f)	Cayman Islands	$	1,200,000		1,094,516
Trinitas CLO XVIII Ltd. 7.84%, 2021-18A, Class D (3 Month LIBOR USD + 3.60%), 01/20/2035 (b) (f)	Cayman Islands		2,000,000		1,858,723
Total Collateralized Loan Obligations					24,645,721
Commercial Mortgage-Backed Securities – 7.9% (a)
Banc of America Commercial Mortgage Trust 1.25%, 2015-UBS7, Class XFG, 09/15/2048 (f)	United States		10,000,000		299,889

See Notes to Consolidated Financial Statements.

2022 Annual Report
27

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
STRUCTURED CREDIT (continued)
BBCMS Trust 7.27%, 2018-BXH, Class F (1 Month US LIBOR + 2.95%), 10/15/2037 (b) (f)	United States	$	270,000	$	249,309
Benchmark Mortgage Trust 3.11%, 2018-B6, Class E, 10/10/2051 (f)	United States		225,000		141,914
BWAY Mortgage Trust 4.87%, 2022-26BW, Class E, 02/10/2044 (f)	United States		677,000		439,915
BX Commercial Mortgage Trust 7.92%, 2019-IMC, Class G (1 Month LIBOR USD + 3.60%), 04/15/2034 (b) (f)	United States		1,000,000		939,398
BX Trust 8.35%, 2021-SDMF, Class J (1 Month US LIBOR + 4.03%), 09/15/2034 (b) (f)	United States		470,000		433,856
CD Mortgage Trust 3.30%, 2017-CD4, Class D, 05/10/2050 (f)	United States		305,000		218,494
3.35%, 2017-CD5, Class D, 08/15/2050 (f)	United States		489,000		346,390
CFCRE Commercial Mortgage Trust 6.45%, 2018-TAN, Class E, 02/15/2033 (f)	United States		225,000		217,625
CGDB Commercial Mortgage Trust 7.31%, 2019-MOB, Class G (1 Month US LIBOR + 2.99%), 11/15/2036 (b) (f)	United States		1,537,000		1,430,973
Citigroup Commercial Mortgage Trust 8.02%, 2021-KEYS, Class F (1 Month LIBOR USD + 3.70%), 10/15/2036 (b) (f)	United States		741,000		728,955
COMM Mortgage Trust 1.91%, 2016-DC2, Class XF, 02/10/2049 (f)	United States		13,350,000		691,701
CSAIL Commercial Mortgage Trust 4.06%, 2017-CX9, Class D, 09/15/2050 (f)	United States		190,000		137,266
DBGS Mortgage Trust 8.47%, 2021-W52, Class F (1 Month LIBOR USD + 4.15%), 10/15/2036 (b) (f)	United States		1,000,000		933,801
Great Wolf Trust 7.45%, 2019-WOLF, Class F (1 Month SOFR + 3.13%), 12/15/2036 (b) (f)	United States		1,298,000		1,229,958
Hilton USA Trust 6.16%, 2016-SFP, Class F, 11/05/2035 (f)	United States		1,000,000		941,181
J.P. Morgan Chase Commercial Mortgage Securities Trust 8.58%, 2021-HTL5, Class F (1 Month US LIBOR + 4.27%), 11/15/2038 (b) (f)	United States		1,084,000		991,896
Natixis Commercial Mortgage Securities Trust 10.28%, 2022-RRI, Class F (1 Month SOFR + 5.94%), 03/15/2035 (b) (f)	United States		658,000		645,355
Taubman Centers Commercial Mortgage Trust 9.11%, 2022-DPM, Class D (1 Month SOFR + 4.77%), 05/15/2037 (b) (f)	United States		307,000		302,906
VMC Finance LLC 8.84%, 2021-HT1, Class B (1 Month US LIBOR + 4.50%), 01/18/2037 (b) (f)	United States		643,000		611,090
Wells Fargo Commercial Mortgage Trust 2.60%, 2017-C41, Class D, 11/15/2050 (f)	United States		316,000		210,909
Total Commercial Mortgage-Backed Securities					12,142,781

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
STRUCTURED CREDIT (continued)
Residential Mortgage-Backed Securities – 2.1% (a)
Deephaven Residential Mortgage Trust 4.34%, 2022-2, Class B1, 03/25/2067 (f)	United States	$	229,000	$	158,544
GCAT Trust 3.97%, 2022-NQM1, Class B1, 02/25/2067 (f)	United States		476,000		320,299
Imperial Fund Mortgage Trust 4.46%, 2022-NQM3, Class M1, 05/25/2067 (f)	United States		332,000		245,360
MFA Trust 4.30%, 2022-NQM1, Class B1, 12/25/2066 (f)	United States		251,000		167,932
Progress Residential Trust 5.60%, 2022-SFR3, Class E2, 04/17/2039 (f)	United States		212,000		187,501
PRPM LLC 4.83%, 2021-10, Class A2, 10/25/2026 (f) (j)	United States		1,000,000		870,739
Seasoned Credit Risk Transfer Trust 4.50%, 2022-1, Class M, 11/25/2061 (f)	United States		226,000		175,686
STAR Trust 8.82%, 2022-SFR3, Class F (1 Month SOFR + 4.50%), 05/17/2024 (b) (f)	United States		170,000		165,716
Western Mortgage Reference Notes 9.28%, 2021-CL2, Class M4 (30-Day Average SOFR + 5.35%), 07/25/2059 (b) (f)	United States		881,245		877,269
Total Residential Mortgage-Backed Securities					3,169,046
Other – 0.9% (a)
Castlelake Aircraft Structured Trust 2.74%, 2017-1R, Class A, 08/15/2041 (f)	United States		301,551		261,648
Horizon Aircraft Finance I Ltd. 4.46%, 2018-1, Class A, Perpetual (f)	United States		790,247		648,687
Pioneer Aircraft Finance Ltd. 3.97%, 2019-1, Class A, 06/15/2044 (f)	Cayman Islands		635,833		505,401
Total Other					1,415,736
TOTAL STRUCTURED CREDIT(Cost $46,294,457)					41,373,284
PRIVATE CREDIT – 25.8%
Senior Loans – 24.4% (a)
Auto Components – 1.7%
Superior Industries International, Inc., First Lien Tranche B Term Loan 12.32% (SOFR Index + 8.00%), 12/15/2028 (b) (d)	United States		2,606,000		2,527,820
Biotechnology – 1.7%
ADC Therapeutics, Initial Term Loan – Tranche A 7.50%, 08/15/2029 (d)	United States		1,135,543		1,075,227
ADC Therapeutics, Initial Term Loan – Tranche B 7.50%, 08/15/2029 (d) (e)	United States		520,457		—
Mesoblast, Inc., First Lien Delay Delivery Tranche B Term Loan 9.75%, 11/19/2026 (d)	United States		1,598,873		1,428,273
Mesoblast, Inc., First Lien Tranche B Term Loan 9.75%, 11/19/2026 (d) (e)	United States		262,438		—

See Notes to Consolidated Financial Statements.

2022 Annual Report
29

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
PRIVATE CREDIT (continued)
Mesoblast, Inc., First Lien Tranche C Term Loan 9.75%, 11/19/2026 (d) (e)	United States	$	524,875	$	—
Total Biotechnology					2,503,500
Commercial Services & Supplies – 1.5%
Kings Buyer LLC, First Lien Term Loan 6.50% (1 Month US LIBOR + 6.50%), 10/29/2027 (b) (d)	United States		2,264,109		2,191,431
Kings Buyer LLC, First Lien Revolver Facility 7.51% (1 Month US LIBOR + 6.50%), 10/29/2027 (b) (d) (e)	United States		310,246		99,540
Containers & Packaging – 1.1%
ASP-r-pac Acquisition Company LLC, First Lien Term Loan 9.67% (1 Month US LIBOR + 6.00%), 12/29/2027 (b) (d)	United States		1,715,293		1,644,407
ASP-r-pac Acquisition Company LLC, First Lien Tranche B Term Loan 6.00% (3 Month US LIBOR + 6.00%), 12/29/2027 (b) (c) (d) (e)	United States		205,745		—
Distributors – 1.3%
RelaDyne, First Lien Term Loan 10.88% (SOFR Index + 7.75%), 12/23/2029 (b) (d)	United States		1,996,000		1,933,126
Health Care Equipment & Supplies – 1.9%
Touchstone Acquisition, Inc., First Lien Term Loan 10.07% (1 Month US LIBOR + 6.00%), 12/29/2028 (b) (d)	United States		2,998,930		2,931,454
Health Care Providers & Services – 1.8%
LSL Holdco LLC, First Lien Term Loan 9.75% (1 Month US LIBOR + 6.00%), 01/31/2028 (b) (d)	United States		2,385,720		2,248,541
LSL Holdco LLC, First Lien Revolver Facility 9.48% (1 Month US LIBOR + 6.00%), 01/31/2028 (b) (d)	United States		266,412		251,093
LSL Holdco LLC Incremental, First Lien Term Loan 10.07% (1 Month US LIBOR + 6.00%), 01/31/2028 (b) (d)	United States		277,069		261,138
Total Health Care Providers & Services					2,760,772
Health Care Technology – 3.2%
Establishment Labs Holdings, Inc., First Lien Term Loan 9.00%, 04/21/2027 (d)	United States		1,152,068		1,100,225
Establishment Labs Holdings, Inc., First Lien Delay Draw Term Loan 9.00%, 04/21/2027 (d)	United States		184,505		184,505
9.00%, 04/21/2027 (d) (e)	United States		184,290		—
9.00%, 04/21/2027 (d)	United States		184,290		184,290
Impel Neuropharma, Inc., First Lien Term Loan 10.95% (1 Month SOFR + 8.75%), 03/17/2027 (b) (d)	United States		1,001,000		977,577

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
PRIVATE CREDIT (continued)
Impel Neuropharma, Inc., First Lien Revenue Interest Financing Term Loan 13.86%, 02/15/2031 (d)	United States	$	1,071,850	$	1,067,562
Innocoll Pharmaceuticals Ltd., First Lien Term Loan 11.00%, 01/26/2027 (d)	United States		1,510,485		1,403,996
Innocoll Pharmaceuticals Ltd., First Lien Delay Draw Term Loan 11.00%, 01/26/2027 (e)	United States		929,530		—
Total Health Care Technology					4,918,155
Hotels, Restaurants & Leisure – 3.8%
Grove Hotel Parcel Owner LLC, First Lien Delay Draw Term Loan 0.00% (3 Month SOFR + 8.00%), 06/21/2028 (b) (d) (e)	United States		350,754		—
Grove Hotel Parcel Owner LLC, First Lien Revolver Facility 0.00% (3 Month SOFR + 8.00%), 06/21/2028 (b) (d) (e)	United States		175,377		—
Grove Hotel Parcel Owner LLC, First Lien Term Loan 11.04% (3 Month SOFR + 8.00%), 06/21/2028 (b) (d)	United States		1,753,769		1,708,171
PFNY Holdings LLC, First Lien Term Loan 10.74% (1 Month US LIBOR + 7.00%), 12/31/2026 (b) (d)	United States		3,613,085		3,549,856
PFNY Holdings LLC, First Lien Delay Draw Term Loan 10.74% (3 Month US LIBOR + 7.00%), 12/31/2026 (b) (d) (e)	United States		346,704		302,500
PFNY Holdings LLC, First Lien Revolver Facility 7.00% (3 Month US LIBOR + 7.00%), 12/31/2026 (b) (d)	United States		173,352		170,318
Total Hotels, Restaurants & Leisure					5,730,845
Machinery – 1.2%
Profrac Holdings II LLC, First Lien Delay Draw Term Loan 11.13%, 03/04/2025 (d)	United States		195,226		190,541
ProFrac Holdings LLC, First Lien Term Loan 11.10% (1 Month SOFR + 9.00%), 03/04/2027 (b) (d)	United States		1,696,761		1,656,039
Total Machinery					1,846,580
Pharmaceuticals – 0.8%
Bioxcel Therapeutics, Inc., Lien Tranche A Delay Draw Term Loan 13.56%, 09/30/2032 (d)	United States		387,469		387,469
Bioxcel Therapeutics, Inc., Lien Tranche B Delay Draw Term Loan 0.00%, 09/30/2032 (d) (e)	United States		563,378		—
Bioxcel Therapeutics, Inc., Lien Tranche C Delay Draw Term Loan 0.00%, 09/30/2032 (d) (e)	United States		563,378		—
Bioxcel Therapeutics, Inc., First Lien Revolver Facility Tranche B 10.25%, 04/19/2027 (e)	United States		813,768		—

See Notes to Consolidated Financial Statements.

2022 Annual Report
31

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Principal Amount		Value
PRIVATE CREDIT (continued)
Bioxcel Therapeutics, Inc., First Lien Delay Draw Term Loan 10.25%, 04/19/2027 (d)	United States	$	886,418	$	827,914
Software – 4.4%
Avalara, Inc., First Lien Term Loan 11.21% (3 Month SOFR + 7.25%), 10/19/2029 (b) (d)	United States		2,491,000		2,422,499
Avalara, Inc., First Lien Revolver Facility 11.21% (SOFR Index + 7.25%), 10/19/2029 (b) (d) (e)	United States		249,000		—
iCIMS, Inc., First Lien Delay Draw Term Loan 0.00% (3 Month SOFR + 6.75%), 08/18/2028 (b) (d) (e)	United States		439,408		—
iCIMS, Inc., First Lien Term Loan 10.26% (SOFR Index + 7.25%), 08/18/2028 (b) (d)	United States		253,659		248,586
10.26% (3 Month SOFR + 6.75%), 08/18/2028 (b) (d)	United States		1,654,301		1,586,806
iCIMS, Inc., First Lien Revolver Facility 0.50% (3 Month SOFR + 6.75%), 08/18/2028 (b) (d) (e)	United States		157,552		898
OEConnection LLC, Second Lien Tranche B Term Loan 10.05% (1 Month US LIBOR + 7.00%), 09/25/2027 (b) (d)	United States		2,499,000		2,400,039
Total Software					6,658,828
Total Senior Loans					36,961,841
		Shares
Preferred Stock – 1.2%
Health Care Technology – 1.2%
athenahealth, Inc. – (Acquired 2/15/2022, Cost $1,992,289) (d) (k)	United States		2,033		1,702,577
Common Stock – 0.1%
Distributors – 0.1%
RelaDyne – (Acquired 12/23/2021, Cost $187,703) (d) (k)	United States		2,000		212,060
Warrants – 0.1%
Biotechnology – 0.0%
ADC Therapeutics – (Exercise price: $8.30, Expiration: 08/15/32) – (Acquired 8/15/2022, Cost $30,028) (d) (k)	United States		4,988		8,679
Mesoblast, Inc. – (Exercise Price: $7.26, Expiration: 11/19/26) – (Acquired 12/20/2021, Cost $106,354) (d) (k)	United States		46,443		49,694
Total Biotechnology					58,373

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Description	Country	Shares		Value
PRIVATE CREDIT (continued)
Health Care Technology – 0.1%
Innocoll Pharmaceuticals Ltd. – (Exercise Price: $7.26, Expiration: 01/26/29) – (Acquired 1/26/2022 – 9/1/2022, Cost $77,901) (d) (k)	United States	$	20,192	$	146,796
Pharmaceuticals – 0.0%
Bioxcel Therapeutics, Inc. – (Exercise price: $20.04, Expiration: 04/19/29) – (Acquired 4/28/2022, Cost $0) (d) (k)	United States		3,487		45,331
Total Warrants					250,500
TOTAL PRIVATE CREDIT (Cost $39,856,779)					39,126,978
MONEY MARKET FUND – 2.7%
First American Government Obligations Fund, – X Class, 2.924% (l)	United States		4,048,993		4,048,993
TOTAL MONEY MARKET FUND (Cost $4,048,993)					4,048,993
Total Investments – 112.1% (m) (Cost $186,825,670)					170,052,041
Liabilities in Excess of Other Assets – (12.1)%					(18,350,391	)

TOTAL NET ASSETS – 100.0%

151,701,650

The following notes should be read in conjunction with the accompanying Consolidated Schedule of Investments.

(a) These investments may be subject to legal restrictions on sales, which as of December 31, 2022, represented 118,546,312, or 77.3% of the Fund's net assets.

(b) Variable rate security – Interest rate is based on reference rate and spread or based on the underlying assets. Interest rate may also be subject to a cap or floor.

(d) Security fair valued in good faith pursuant to the fair value procedures adopted by the Board of Trustees. As of December 31, 2022, the total value of all such securities was $41,343,814 or 27.3% of net assets. These securities are characterized as Level 3 securities within the disclosure hierarchy. Level 3 security values are determined using significant unobservable inputs.

(e) As of December 31, 2022, the Fund had entered into 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.

Company	Investment Type	Total revolving and delayed draw loan commitments (000s)		Less: funded commitments (000s)		Total unfunded commitments (000s) (Note 10)
PFNY Holdings LLC	First Lien Delay Draw Term Loan	$	347	$	309	$	38
Mesoblast, Inc.	First Lien Tranche B Term Loan		262		—		262
Mesoblast, Inc.	First Lien Tranche C Term Loan		525		—		525
ASP-r-pac Acquisition Company LLC	First Lien Tranche B Term Loan		206		—		206
Kings Buyer LLC	First Lien Revolver Facility		310		109		201
Innocoll Pharmaceuticals Ltd.	First Lien Delay Draw Term Loan		465		—		465
Innocoll Pharmaceuticals Ltd.	First Lien Delay Draw Term Loan		465		—		465
ADC Therapeutics	Initial Term Loan – Tranche B		520		—		520
Bioxcel Therapeutics, Inc.	Lien Tranche B Delay Draw Term Loan		563		—		563
Bioxcel Therapeutics, Inc.	Lien Tranche C Delay Draw Term Loan		563		—		563

See Notes to Consolidated Financial Statements.

2022 Annual Report
33

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Company	Investment Type	Total revolving and delayed draw loan commitments (000s)		Less: funded commitments (000s)		Total unfunded commitments (000s) (Note 10)
Bioxcel Therapeutics, Inc.	First Lien Revolver Facility Tranche B	$	438	$	—	$	438
Bioxcel Therapeutics, Inc.	First Lien Revolver Facility Tranche B		376		—		376
Establishment Labs Holdings, Inc.	First Lien Delay Draw Term Loan		184		—		184
Grove Hotel Parcel Owner LLC	First Lien Delay Draw Term Loan		351		—		351
Grove Hotel Parcel Owner LLC	First Lien Revolver Facility		175		—		175
iCIMS, Inc.	First Lien Delay Draw Term Loan		439		—		439
iCIMS, Inc.	First Lien Revolver Facility		158		7		151
Baart Programs, Inc.	First Lien Delay Draw Term Loan		720		423		297
Baart Programs, Inc.	Second Lien Delay Draw Term Loan		1,246		584		662
AI Aqua Merger Sub, Inc.	First Lien Delay Draw Term Loan		74		37		37
Avalara, Inc.	First Lien Revolver Facility		249		—		249
		$	8,636	$	1,469	$	7,167

(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional buyers. As of December 31, 2022, the total value of all such securities was $66,299,692 or 43.7% of net assets.

(g) Regulation S security. These securities may be subject to transfer restrictions as defined by Regulation S. As of December 31, 2022, the total value of all such securities was $208,299 or 0.0% of net assets.

(h) A portion of these securities are held in the Oaktree Diversified Income Fund (Cayman) Ltd., a Cayman Islands exempted company and wholly-owned subsidiary of the Fund.

(i) Paid in kind security which may pay interest in additional par.

(j) Security is a "step up" bond where the coupon increases or steps up at a predetermined date. Interest rate shown is the rate in effect as of December 31, 2022.

(k) Restricted security. Purchased in a private placement transaction; resale to the public may require registration. As of December 31, 2022, the total value of all such securities was 2,165,137 or 1.4% of net assets.

(l) The rate shown represents the seven-day yield as of December 31, 2022.

(m) All securities in the fund are pledged as collateral for the credit facility.

(n) Issuer is currently in default on its regularly scheduled interest payment.

Abbreviations:

EURIBOR Euro Interbank Offered Rate

LIBOR London Interbank Offered Rates

LLC Limited Liability Corporation

LP Limited Partnership

PIK Payment-in Kind

SOFR Secured Overnight Financial Rate

SONIA Sterling Overnight Index Average

USD United States Dollar

Forward Currency Contracts:

All forward currency contracts were entered into with State Street Bank & Trust Company as the counterparty. As of June 30, 2022, the following forward currency contracts were outstanding:

Settlement Date	Currency to be Delivered			U.S. $ Value at December 31, 2022		Currency to be Received			U.S. $ Value at December 31, 2022		Unrealized Appreciation (Depreciation)
01/11/23		221,450,357	Japanese Yen	$	1,690,160		1,538,554	U.S. Dollars	$	1,538,554	$	(151,606	)
01/11/23		1,571,923	U.S. Dollars		1,571,922		221,450,357	Japanese Yen		1,690,160		118,238
01/19/23		1,234,112	U.S. Dollars		1,234,112		1,260,570	Euros		1,351,331		117,219
01/19/23		6,835	U.S. Dollars		6,835		5,659	British Pounds		6,845		10
01/19/23		125,112	U.S. Dollars		125,112		981,269	Hong Kong Dollars		125,779		667

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Schedule of Investments (continued)

December 31, 2022

Settlement Date	Currency to be Delivered			U.S. $ Value at December 31, 2022		Currency to be Received			U.S. $ Value at December 31, 2022		Unrealized Appreciation (Depreciation)
01/19/23		6,426,625	Euros	$	6,889,346		6,393,890	U.S. Dollars	$	6,393,890	$	(495,456	)
01/19/23		981,269	Hong Kong Dollars		125,779		125,199	U.S. Dollars		125,199		(580	)
01/19/23		443,715	Great British Pounds		536,735		495,316	U.S. Dollars		495,316		(41,419	)
04/19/23		14,887,397	Euros		16,054,766		16,317,474	U.S. Dollars		16,317,474		262,708
									Total		$	(190,219	)

See Notes to Consolidated Financial Statements.

2022 Annual Report
35

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Statement of Assets and Liabilities

December 31, 2022

Assets:
Investments in securities, at value (Cost $186,825,670)	$	170,052,041
Cash		215,613
Foreign currency, at value (Cost $293,808)		302,163
Interest receivable		2,526,320
Receivable for fund shares sold		563,480
Unrealized appreciation on forward currency contracts (Note 3)		498,842
Deferred debt issuance costs (Note 6)		143,084
Prepaid expenses		6,750
Total assets		174,308,293
Liabilities:
Payable for credit facility (Note 6)		20,000,000
Interest payable for credit facility (Note 6)		2,228
Payable for investments purchased		1,543,693
Unrealized depreciation on forward currency contracts (Note 3)		689,061
Investment advisory fees payable (Note 4)		190,300
Accrued expenses		181,361
Total liabilities		22,606,643
Commitments and contingencies (Note 10)
Net Assets	$	151,701,650
Composition of Net Assets:
Paid-in capital	$	173,006,805
Accumulated losses		(21,305,155	)
Net Assets	$	151,701,650
Shares Outstanding and Net Asset Value Per Share:
Shares outstanding		17,661,595
Net asset value per share	$	8.59

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Statement of Operations

For the Year Ended December 31, 2022

Investment Income (Note 2):
Interest (net of foreign withholding tax of $25,659)	$	11,821,582
Total investment income		11,821,582
Expenses:
Investment advisory fees (Note 4)		1,995,058
Legal fees		250,184
Fund accounting and sub-administration fees		159,683
Directors' fees		130,547
Audit and tax services		110,430
Offering costs (Note 2)		65,941
Miscellaneous		42,984
Reports to shareholders		30,761
Transfer agent fees		25,260
Custodian fees		14,892
Insurance		10,814
Registration fees		9,159
Total operating expenses		2,845,713
Interest expense and credit facility fees (Note 6)		791,336
Net expense recoupment (Note 4)		202,188
Net expenses		3,839,237
Net investment income		7,982,345
Net realized gain (loss) on:
Investments		(2,953,935	)
Foreign currency transactions		(17,859	)
Forward currency contracts		1,668,480
Futures contracts		77,458
Swap contracts		(370,372	)
Net realized loss		(1,596,228	)
Net change in unrealized appreciation (depreciation) on:
Investments		(16,652,178	)
Foreign currency translations		73,328
Forward currency contracts		(161,497	)
Swap contracts		(115,169	)
Net change in unrealized depreciation		(16,855,516	)
Net realized and unrealized loss		(18,451,744	)
Net decrease in net assets resulting from operations	$	(10,469,399	)

See Notes to Consolidated Financial Statements.

2022 Annual Report
37

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Statement of Changes in Net Assets

	For the Year Ended December 31, 2022			For the Period November 1, 2021¹ through December 31, 2021
Increase (Decrease) in Net Assets Resulting from Operations:
Net investment income	$	7,982,345		$	264,155
Net realized loss		(1,596,228	)		(126,984	)
Net change in unrealized depreciation		(16,855,516	)		(144,746	)
Net decrease in net assets resulting from operations		(10,469,399	)		(7,575	)
Distributions to Shareholders:
Distributable earnings		(10,683,466	)		(194,726	)
Total distributions paid		(10,683,466	)		(194,726	)
Capital Share Transactions:
Proceeds from shares sold		12,643,242			150,100,000
Reinvestment of distributions		10,178,729			194,726
Cost of shares repurchased (Note 8)		(59,881	)		—
Net increase in net assets from capital share transactions		22,762,090			150,294,726
Total increase in net assets		1,609,225			150,092,425
Net Assets:
Beginning of period		150,092,425			—
End of period	$	151,701,650		$	150,092,425
Share Transactions:
Shares sold		1,414,283			15,075,734
Shares reinvested		1,158,749			19,649
Shares repurchased (Note 8)		(6,820	)		—
Net increase in shares outstanding		2,566,212			15,095,383

¹ Commencement of operations.

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Statement of Cash Flows

For the Year Ended December 31, 2022

Increase (Decrease) in Cash:
Cash flows provided by (used for) operating activities:
Net decrease in net assets resulting from operations	$	(10,469,399	)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash used for operating activities:
Purchases of long-term portfolio investments and principal payups		(87,994,500	)
Proceeds from disposition of long-term portfolio investments and principal paydowns		39,882,011
Net purchases and sales of short-term portfolio investments		528,294
Increase in interest and dividends receivable		(1,397,057	)
Decrease in receivable for investments sold		44,823
Increase in receivable for fund shares sold		(563,480	)
Decrease in premiums received for swap contracts		1,055,231
Decrease in unrealized appreciation on swap contracts		115,169
Decrease in deferred debt issuance costs		41,916
Decrease in deferred offering costs		53,723
Increase in prepaid expenses		(6,750	)
Increase in interest payable for credit facility and reverse repurchase agreements		2,228
Decrease in payable for investments purchased		(34,231,629	)
Increase in investment advisory fees payable		21,315
Decrease in accrued expenses		(4,513	)
Net accretion of discount on investments and other adjustments to cost		(403,184	)
Net change in unrealized depreciation on investments		16,652,178
Net change in unrealized depreciation on forward currency contracts		161,497
Net realized loss on investment transactions		2,953,935
Net cash used for operating activities		(73,558,192	)
Cash flows provided by financing activities:
Borrowing on credit facility		20,000,000
Net cash provided by proceeds from shares sold		12,583,361
Distributions paid to shareholders, net of reinvestments		(504,737	)
Net cash provided by financing activities		32,078,624
Net decrease in cash		(41,479,568	)
Cash at beginning of year⁽¹⁾		41,997,344
Cash at end of year⁽²⁾	$	517,776
Supplemental Disclosure of Cash Flow Information:
Interest payments on the credit facility for the year ended December 31, 2022 totaled $789,108.
Non-cash financing activities not included consist of reinvestment of distributions for the year ended December 31, 2022 of $10,178,729.

⁽¹⁾ Includes foreign currency and cash on deposit with brokers for swap contracts.

⁽²⁾ Includes foreign currency.

See Notes to Consolidated Financial Statements.

2022 Annual Report
39

OAKTREE DIVERSIFIED INCOME FUND INC.

Consolidated Financial Highlights

Class D	For the Year Ended December 31, 2022			For the Period November 1, 2021¹ through December 31, 2021
Per Share Operating Performance:
Net asset value, beginning of period	$	9.94		$	10.00
Income from Investment Operations:
Net investment income²		0.50			0.02
Net realized and change in unrealized loss		(1.20	)		(0.07	)
Net decrease in net asset value resulting from operations		(0.70	)		(0.05	)
Distributions to Shareholders:
From net investment income		(0.65	)		(0.01	)
Total distributions paid*		(0.65	)		(0.01	)
Net asset value, end of period	$	8.59		$	9.94
Total Investment Return^†		7.03	%		-0.37	%³
Ratios to Average Net Assets/Supplementary Data:
Net assets, end of period (000s)	$	151,702		$	150,092
Gross operating expenses excluding interest expense		1.96	%		5.55	%⁴
Gross operating expenses		2.51	%		5.55	%⁴
Net expenses, including fee waivers and reimbursement or recoupment and excluding interest expense		2.10	%		2.10	%⁴
Net expenses, including fee waivers and reimbursement or recoupment and interest expense		2.65	%		2.10	%⁴
Net investment income		5.64	%		1.51	%⁴
Net investment income, excluding the effect of fee waivers and reimbursement or recoupment		5.50	%		(1.94	)%⁴
Portfolio turnover rate		25	%		4	%³

The following table sets forth information regarding the Fund's outstanding senior securities as of the end of each of the Fund's last ten fiscal years, as applicable.

Fiscal or Period End

Total Amount
Outstanding
Exclusive
of Treasury
Securities

Asset Coverage
Per Unit⁵

Involuntary
Liquidating
Preference
Per Unit

Average
Market Value
Per Unit
(Exclude Bank
Loans)

Type of Senior
Security

December 31, 2022

20,000,000

8,585

N/A

Credit Facility

December 31, 2021⁶

N/A

* Distributions for annual periods determined in accordance with federal income tax regulations.

^† Total investment return is computed based upon the net asset value of the Fund's shares and excludes the effects of sales charges or contingent deferred sales charges, if applicable. Distributions are assumed to be reinvested at the net asset value of the Class on the ex-date of the distribution.

¹ Commencement of operations.

² Per share amounts presented are based on average shares outstanding throughout the period indicated.

³ Not annualized.

⁴ Annualized.

⁵ Calculated by subtracting the Fund's total liabilities (not including borrowings) from the Fund's total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness.

⁶ Commenced operations on November 1, 2021.

See Notes to Consolidated Financial Statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements

December 31, 2022

1. Organization

Oaktree Diversified Income Fund Inc. (the "Fund") was organized as a corporation under the laws of the State of Maryland on June 29, 2021. The Fund is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified, closed-end management investment company that continuously offers its shares of common stock, $0.001 par value per share (the "Common Shares"), and is operated as an "interval fund." The Fund's Class D shares commenced operations on November 1, 2021.

The Fund has two classes of shares: Class D and Class T shares. The Fund had applied for, and was granted, exemptive relief (the "Exemptive Relief") by the Securities and Exchange Commission (the "SEC") that permits the Fund to issue multiple classes of shares and to impose asset-based distribution fees and early-withdrawal fees. Currently, the Fund is only offering Class D shares.

Oaktree Fund Advisors, LLC ("Oaktree" or the "Adviser"), a Delaware limited liability company and a registered investment adviser under the Investment Advisers Act of 1940, as amended, serves as the investment adviser to the Fund. Oaktree was founded in April 1995 and is a leader among global investment managers specializing in alternative investments.

Brookfield Public Securities Group LLC (the "Administrator"), a wholly-owned subsidiary of Brookfield Asset Management Inc. ("Brookfield"), is registered as an investment adviser under the Investment Advisers Act of 1940, as amended, and serves as Administrator to the Fund. In 2019, Brookfield acquired a majority interest in the Adviser.

The Fund's investment objective is to seek current income and attractive total return. The Fund seeks to achieve its investment objective by investing globally in high-conviction opportunities across Oaktree's performing credit platform of high-yield bonds, senior loans, structured credit, emerging markets debt and convertibles, inclusive of both public and private credit sectors. High-yield bonds are also referred to as "below-investment grade rated securities" or "junk bonds," as described in the Fund's Prospectus. The Fund seeks to add value through three sources: (1) providing exposure to asset classes that require specialized expertise; (2) performing well in each asset class through proprietary, bottom-up and credit research; and (3) allocating capital opportunistically among asset classes based on Oaktree's assessment of relative value.

Oaktree Diversified Income Fund (Cayman) Ltd. (the "Subsidiary"), a Cayman Islands exempted company and wholly-owned subsidiary of the Fund, was formed on November 11, 2021. The Subsidiary was established for the purpose of investing in certain Regulation S securities. As a wholly-owned subsidiary of the Fund, the financial results of the Subsidiary are included in the consolidated financial statements and financial highlights of the Fund. All investments held by the Subsidiary are disclosed in the Consolidated Schedule of Investments. The Fund may invest up to 25% of its total assets in the Subsidiary. The net assets of the Subsidiary at December 31, 2022 were $338,799 or 0.2% of the Fund's consolidated net assets. The accompanying consolidated financial statements include the accounts of the Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946, Financial Services-Investment Companies.

Valuation of Investments: The Fund's Board of Directors (the "Board") has adopted procedures for the valuation of the Fund's securities. The Adviser oversees the day to day responsibilities for valuation determinations under these

2022 Annual Report
41

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

procedures. The Board regularly reviews the application of these procedures to the securities in the Fund's portfolio. The Adviser's Valuation Committee is comprised of senior members of the Adviser's management team.

The Board has designated the Adviser as the valuation designee pursuant to Rule 2a-5 under the 1940 Act to perform fair value determination relating to any or all Fund investments. The Board oversees the Adviser in its role as the valuation designee in accordance with the requirements of Rule 2a-5 under the 1940 Act.

Investments in equity securities listed or traded on any securities exchange or traded in the over-the-counter market are valued at the last trade price as of the close of business on the valuation date. If the NYSE closes early, then the equity security will be valued at the last traded price before the NYSE close. Prices of foreign equities that are principally traded on certain foreign markets will generally be adjusted daily pursuant to a fair value pricing service approved by the Board in order to reflect an adjustment for the factors occurring after the close of certain foreign markets but before the NYSE close. When fair value pricing is employed, the value of the portfolio securities used to calculate the Fund's net asset value ("NAV") may differ from quoted or official closing prices. Investments in open-end registered investment companies, if any, are valued at the NAV as reported by those investment companies.

Debt securities, including U.S. government securities, listed corporate bonds, other fixed income and asset-backed securities, and unlisted securities and private placement securities, are generally valued at the bid prices furnished by an independent pricing service or, if not valued by an independent pricing service, using bid prices obtained from active and reliable market makers in any such security or a broker-dealer. Valuations from broker-dealers or pricing services consider appropriate factors such as market activity, market activity of comparable securities, yield, estimated default rates, timing of payments, underlying collateral, coupon rate, maturity date, and other factors. Short-term debt securities with remaining maturities of sixty days or less are valued at amortized cost of discount or premium to maturity, unless such valuation, in the judgment of the Adviser's Valuation Committee, does not represent fair value.

Bank Loans, Assignments, and Participations. Loans (including "Senior Loans" (as described below), delayed funding loans and revolving credit facilities) may be fixed-or floating-rate obligations. Loan interests may take the form of direct interests acquired during a primary distribution and may also take the form of assignments of, novations of or participations in a bank loan acquired in secondary markets. Senior floating rate loans may be made to or issued by U.S. or non-U.S. banks or other corporations ("Senior Loans"). Senior Loans include senior floating rate loans and institutionally traded senior floating rate debt obligations issued by asset-backed pools and other issuers, and interests therein. Loan interests may be acquired from U.S. or foreign commercial banks, insurance companies, finance companies or other financial institutions who have made loans or are members of a lending syndicate or from other holders of loan interests.

Senior Loans typically pay interest at rates which are re-determined periodically on the basis of a floating base lending rate (such as the London Inter-Bank Offered Rate, "LIBOR," or a similar reference rate) plus a premium. Senior Loans are typically of below investment grade quality. Senior Loans generally (but not always) hold the most senior position in the capital structure of a borrower and are often secured with collateral. A Senior Loan is typically originated, negotiated and structured by a U.S. or foreign commercial bank, insurance company, finance company or other financial institution (an "Agent") for a lending syndicate of financial institutions ("Lenders"). The Agent typically administers and enforces the Senior Loan on behalf of the other Lenders in the syndicate. In addition, an institution, typically but not always the Agent, holds any collateral on behalf of the Lenders.

Over-the-counter financial derivative instruments, such as forward currency contracts, options contracts, or swap agreements, derive their values from underlying asset prices, indices, reference rates, other inputs or a combination of these factors. These instruments are normally valued on the basis of evaluations provided by independent pricing services or broker dealer quotations. Depending on the instrument and the terms of the transaction, the value of the derivative instruments can be estimated by a pricing service provider using a series of techniques, such as simulation pricing models. The pricing models use issuer details and other inputs that are observed from actively quoted markets such as indices, spreads, interest rates, curves, dividends and exchange rates. Derivatives that use

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

similar valuation techniques and inputs as described above are normally categorized as Level 2 of the fair value hierarchy.

Securities for which market prices are not readily available, cannot be determined using the sources described above, or the Adviser's Valuation Committee determines that the quotation or price for a portfolio security provided by a broker-dealer or an independent pricing service is inaccurate will be valued at a fair value determined by the Adviser's Valuation Committee following the procedures adopted by the Adviser under the supervision of the Board. The Adviser's valuation policy establishes parameters for the sources, methodologies, and inputs the Adviser's Valuation Committee uses in determining fair value.

Non-publicly traded debt and equity securities and other securities or instruments for which reliable market quotations are not available are valued by the Adviser using valuation methodologies applied on a consistent basis. These securities may initially be valued at the acquisition price as the best indicator of fair value. The Adviser reviews the significant unobservable inputs, valuations of comparable investments and other similar transactions for investments valued at acquisition price to determine whether another valuation methodology should be utilized. Subsequent valuations will depend on facts and circumstances known as of the valuation date and the application of valuation methodologies further described below. The fair value may also be based on a pending transaction expected to close after the valuation date. These valuation methodologies involve a significant degree of management judgment. Accordingly, valuations do not necessarily represent the amounts which may eventually be realized from sales or other dispositions of investments in the future. Fair values may differ from the values that would have been used had a ready market for the investment existed, and the differences could be material to the consolidated financial statements.

The fair valuation methodology may include or consider the following guidelines, as appropriate: (1) evaluation of all relevant factors, including but not limited to, pricing history, current market level, supply and demand of the respective security; (2) comparison to the values and current pricing of securities that have comparable characteristics; (3) knowledge of historical market information with respect to the security; (4) other factors relevant to the security which would include, but not be limited to, duration, yield, fundamental analytical data, the Treasury yield curve, and credit quality. The fair value may be difficult to determine and thus judgment plays a greater role in the valuation process. Imprecision in estimating fair value can also impact the amount of unrealized appreciation or depreciation recorded for a particular portfolio security and differences in the assumptions used could result in a different determination of fair value, and those differences could be material. For those securities valued by fair valuations, the Adviser's Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available. There can be no assurance that the Fund could purchase or sell a portfolio security at the price used to calculate the Fund's NAV.

A three-tier hierarchy has been established to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes.

Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

The three-tier hierarchy of inputs is summarized in the three broad levels listed below:

Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — quoted prices in markets that are not active or other significant observable inputs (including, but not limited to: quoted prices for similar assets or liabilities, quoted prices based on recently executed transactions, interest rates, credit risk, etc.)

2022 Annual Report
43

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

Level 3 — significant unobservable inputs (including the Fund's own assumptions in determining the fair value of assets or liabilities)

The following table summarizes the Fund's investments valuation inputs categorized in the disclosure hierarchy as of December 31, 2022:

	Level 1		Level 2			Level 3		Total
Corporate Credit
Senior Loans (Syndicated)	$	—	$	37,994,351		$	2,216,836	$	40,211,187
High Yield		—		31,625,362			—		31,625,362
Emerging Markets		—		9,260,964			—		9,260,964
Corporate Bonds		—		3,548,918			—		3,548,918
Convertible Bonds		—		707,150			—		707,150
Investment Grade		—		149,205			—		149,205
Structured Credit
Collateralized Loan Obligations		—		24,645,721			—		24,645,721
Commercial Mortgage-Backed Securities		—		12,142,781			—		12,142,781
Residential Mortgage-Backed Securities		—		3,169,046			—		3,169,046
Other		—		1,415,736			—		1,415,736
Private Credit
Senior Loans		—		—			36,961,841		36,961,841
Preferred Stock		—		—			1,702,577		1,702,577
Common Stock		—		—			212,060		212,060
Warrants		—		—			250,500		250,500
Money Market Fund		4,048,993		—			—		4,048,993
Total Investments	$	4,048,993	$	124,659,234		$	41,343,814	$	170,052,041
Other Financial Instruments⁽¹⁾	Level 1		Level 2			Level 3		Total
Forward currency contracts	$	—	$	(190,219	)	$	—	$	(190,219	)
Total	$	—	$	(190,219	)	$	—	$	(190,219	)

⁽¹⁾ Other financial instruments include forward currency contracts which are reflected at the net unrealized appreciation (depreciation) on the instruments.

The Fund used valuation approaches consistent with the income approach and market approach to determine fair value of certain Level 3 assets as of December 31, 2022. The valuation methodologies utilized by the Fund included discounted cash flows analysis, recent transaction analysis, market yield analysis and market comparable analysis and are described below.

The discounted cash flows analysis utilizes a discounted cash flow method that incorporates expected timing and level of cash flows, as well as assumptions in determining growth rates, income and expense projections, discount rates, capital structure, terminal values and other factors. The applicability and weight assigned to the income technique is determined based on the availability of reliable projections and comparable companies and transactions.

The recent transaction analysis utilizes recent or expected future transactions of the investment to determine fair value, to the extent applicable.

The market yield analysis utilizes expected future cash flows, discounted using estimated current market rates. Discounted cash flow calculations may be adjusted to reflect current market conditions and/or the perceived credit risk of the borrowers. Consideration is also given to a borrower's ability to meet principal and interest obligations; this may include an evaluation of collateral or the underlying value of the borrower, utilizing either the market or income techniques.

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

The market comparable analysis utilizes valuations of comparable public companies or transactions and generally seeks to establish the enterprise value of the portfolio company using a market multiple technique. This technique takes into account a specific financial measure (such as earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, free cash flow, net operating income, net income, book value or net asset value) believed to be most relevant for the given company. Consideration may also be given to such factors as acquisition price of the security, historical and projected operational and financial results for the portfolio company, the strengths and weaknesses of the portfolio company relative to its comparable companies, industry trends, general economic and market conditions and other factors deemed relevant. The applicability and weight assigned to the market technique is determined based on the availability of reliable projections and comparable companies and transactions.

The Fund may estimate the fair value of privately held warrants using a Black Scholes pricing model, which includes an analysis of various factors and subjective assumptions, including the current stock price (by using an enterprise value analysis as described above), the expected period until exercise, expected volatility of the underlying stock price, expected dividends and the risk-free rate. Changes in the subjective input assumptions can materially affect the fair value estimates.

The fair value of the Fund's credit facility, which qualifies as a financial instrument under ASC Topic 825, Disclosures about Fair Values of Financial Instruments, approximates the carrying amount of $20,000,000 for the credit facility presented in the Statement of Assets and Liabilities. As of December 31, 2022, this financial instrument is categorized as Level 2 within the disclosure hierarchy.

The table below shows the significant unobservable valuation inputs that were used by the Adviser's Valuation Committee to fair value the Level 3 investments as of December 31, 2022.

Quantitative Information about Level 3 Fair Value Measurements

Value as of
December 31,
2022

Valuation
Approach

Valuation
Methodology

Unobservable
Input

Amount or
Range/
(Weighted
Average)

Impact to
Valuation
from an
Increase
in Input⁽¹⁾

Corporate Credit

Senior Loans
(Syndicated)

2,216,836

Income
Approach

Discounted
Cash Flow

Yield (Discount Rate
of Cash Flows)

10.0%-15.0%
(13.0%)

Decrease

Private Credit

Senior Loans

36,961,841

Income
Approach

Discounted
Cash Flow

Yield (Discount Rate
of Cash Flows)

10.0%-16.0%
(12.0%)

Decrease

Preferred Stock

1,702,577

Income
Approach

Discounted
Cash Flow

Yield (Discount Rate
of Cash Flows)

15.0%-16.0%
(10.0%)

Decrease

Common Stock

212,060

Market
Approach

Comparable
companies

Earnings
Multiple

9x-11x (10x)

Increase

Warrants

250,500

Other

Black Scholes

Volatility

50%-90%
(68%)

Increase

Total

41,343,814

⁽¹⁾ The impact represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.

2022 Annual Report
45

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

The following is a reconciliation of the assets in which significant unobservable inputs (Level 3) were used in determining fair value:

	Corporate Credit			Private Credit			Total
Balance as of December 31, 2021	$	1,327,206		$	11,438,378		$	12,765,584
Accrued discounts (premiums)		2,594			105,178			107,772
Realized gain (loss)		598			42,471			43,069
Change in unrealized appreciation (depreciation)		(58,681	)		(743,082	)		(801,763	)
Purchases at cost		(945,499	)		29,615,665			28,670,166
Sales proceeds		(67,542	)		(1,331,632	)		(1,399,174	)
Transfers into Level 3		1,958,160			—			1,958,160	⁽¹⁾
Balance as of December 31, 2022	$	2,216,836		$	39,126,978		$	41,343,814
Change in unrealized appreciation (depreciation) for Level 3 assets still held at the reporting date	$	(58,681	)	$	(743,082	)	$	(801,763	)

⁽¹⁾ Security transferred into Level 3 due to a decrease in observable inputs.

For further information regarding the security characteristics of the Fund, see the Consolidated Schedule of Investments.

Investment Transactions and Investment Income: Securities transactions are recorded on trade date. Realized gains and losses from securities transactions are calculated on the identified cost basis. Interest income is recorded on the accrual basis. Discounts and premiums on securities are accreted and amortized on a daily basis using the effective yield to maturity and yield to next methods, respectively and might be adjusted based on management's assessment of the collectability of such interest. Dividend income is recorded on the ex-dividend date.

Foreign Currency Transactions: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not isolate the portion of gains or losses resulting from changes in foreign exchange rates on securities from the fluctuations arising from changes in market prices.

Reported net realized foreign exchange gains or losses arise from sales of securities, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent of the amounts actually received or paid.

Expenses: Expenses directly attributable to the Fund are charged directly to the Fund, while expenses that are attributable to the Fund and other investment companies advised by the Adviser or its affiliates are allocated among the respective investment companies, including the Fund, based either upon relative average net assets, evenly, or a combination of average net assets and evenly.

Certain intermediaries such as banks, broker-dealers, financial advisers or other financial institutions charge a fee for sub-administration, sub-transfer agency and other shareholder services associated with shareholders whose shares are held in omnibus, other group accounts or accounts traded through registered securities clearing agents. The portion of this fee paid by the Fund is included within "Transfer agent fees" in the Statement of Operations.

Offering Costs: Offering costs from the initial launch of the Fund were deferred and were amortized over the first twelve months after the commencement of operations. Offering costs consist primarily of registration fees and legal fees for the preparation of the Fund's initial Registration Statement on Form N-2.

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

Distributions to Shareholders: The Fund declares and pays dividends quarterly from net investment income. To the extent these distributions exceed net investment income, they may be classified as return of capital. The Fund also pays distributions at least annually from its net realized capital gains, if any. Dividends and distributions are recorded on the ex-dividend date. All common shares have equal dividend and other distribution rights. A notice disclosing the source(s) of a distribution is provided after a payment is made from any source other than net investment income. This notice is available on the Adviser's website at https://publicsecurities.brookfield.com/en. Any such notice is provided only for informational purposes in order to comply with the requirements of Section 19(a) of the 1940 Act and not for tax reporting purposes. The tax composition of the Fund's distributions for each calendar year is reported on IRS Form 1099-DIV.

Dividends from net investment income and distributions from realized gains from investment transactions have been determined in accordance with Federal income tax regulations and may differ from net investment income and realized gains recorded by the Fund for financial reporting purposes. These differences, which could be temporary or permanent in nature, may result in reclassification of distributions; however, net investment income, net realized gains and losses and net assets are not affected.

When Issued, Delayed Delivery Securities and Forward Commitments: The Fund may enter into forward commitments for the purchase or sale of securities, including on a "when issued" or "delayed delivery" basis, in excess of customary settlement periods for the type of security involved. In some cases, a forward commitment may be conditioned upon the occurrence of a subsequent event, such as approval and consummation of a merger, corporate reorganization or debt restructuring (i.e., a when, as and if issued security). When such transactions are negotiated, the price is fixed at the time of the commitment, with payment and delivery taking place in the future, generally a month or more after the date of the commitment. While it will only enter into a forward commitment with the intention of actually acquiring the security, the Fund may sell the security before the settlement date if it is deemed advisable. Securities purchased under a forward commitment are subject to market fluctuation, and no interest (or dividends) accrues to the Fund prior to the settlement date. The Fund will segregate with its custodian cash or liquid securities in an aggregate amount at least equal to the amount of its outstanding forward commitments.

Investments in Real Estate: The Fund may invest a portion of its assets in public and/or private debt investments and other real estate assets or real estate-related securities and obligations. The value of these debt investments and whether and to what extent such investments perform as expected will depend, in part, on the prevailing conditions in the market for real estate investment generally and, in particular, on the value of the underlying real estate asset collateral or real estate-related companies to which such debt investments relate. The real estate industry is cyclical in nature, and a deterioration of real estate fundamentals in the markets in which the Fund invests will have an adverse effect on the performance of the Fund's investments. The value of real estate assets and real estate-related investments can fluctuate for various reasons. Real estate values can be seriously affected by interest rate fluctuations, changes in general and local economic conditions, bank liquidity, the availability of financing, changes in environmental and zoning laws, overbuilding and increased competition, changes in supply and demand fundamentals, an increase in property taxes, casualty or condemnation losses, bankruptcy or financial difficulty of a major tenant, regulatory limitations on rent, increased mortgage defaults and the availability of mortgage funds which may render the sale or refinancing of properties difficult or impracticable. Reductions in value or cash flow could impair the Fund's ability to make distributions to Common Shareholders, adversely impact its ability to effectively achieve its investment objective and reduce overall returns on investments.

Investments in Real Estate Loans: While the Fund intends to invest primarily in "performing" real estate debt securities, real estate loans underlying the securities acquired by the Fund may be non-performing at the time of their acquisition and/or may become non-performing following their acquisition for a wide variety of reasons. Such non-performing real estate loans may require a substantial amount of workout negotiations and/or restructuring, which may entail, among other things, a substantial reduction in the interest rate and a substantial writedown of the principal of such loan. However, even if a restructuring were successfully accomplished, a risk exists that, upon maturity of such real estate loan, replacement "takeout" financing will not be available. Purchases of participations in real estate loans raise many of the same risks as investments in real estate loans and also carry risks of illiquidity and lack of control.

2022 Annual Report
47

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

Collateralized Loan Obligations ("CLOs"): The Fund may invest in CLOs and other securitizations, which are generally limited recourse obligations of the issuer ("Securitization Vehicles") payable solely from the underlying assets ("Securitization Assets") of the issuer or proceeds thereof. Holders of equity or other securities issued by Securitization Vehicles must rely solely on distributions on the Securitization Assets or proceeds thereof for payment in respect thereof. Consequently, the Fund will typically not have any direct rights against the issuer of, or the entity that sold, assets underlying the securitization. The Securitization Assets may include, without limitation, broadly syndicated leverage loans, middle-market bank loans, CDO debt tranches, trust preferred securities, insurance surplus notes, asset-backed securities, mortgages, REITs, high-yield bonds, mezzanine debt, second-lien leverage loans, credit default swaps and emerging market debt and corporate bonds, which are subject to liquidity, market value, credit, interest rate, reinvestment and certain other risks.

New Accounting Pronouncements: In March 2020, FASB issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform. The amendments in ASU No. 2020-04 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU No. 2021-01, which clarifies that certain provisions in Topic 848, if elected by an entity, apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. The Fund has evaluated this guidance and determined that it does not have a material impact on the accompanying financial statements; however, the Fund is still evaluating the potential impact to future financial statements.

In June 2022, FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in this update clarify the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual sale restrictions and introduce new disclosure requirements related to such equity securities. The amendments are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. Management is currently evaluating the impact of this guidance on the Funds' financial statements.

3. Derivative Financial Instruments

The Fund may purchase and sell derivative instruments such as exchange-listed and over-the counter put and call options on securities, financial futures, equity, fixed-income and interest rate indices, and other financial instruments. It may purchase and sell financial futures contracts and options thereon. Moreover, the Fund may enter into various interest rate transactions such as swaps, caps, floors or collars and enter into various currency transactions such as forward currency contracts, currency futures contracts, currency swaps or options on currency or currency futures or credit transactions and credit default swaps. The Fund may also purchase derivative instruments that combine features of several of these instruments. The Fund may invest in, or enter into, derivatives for a variety of reasons including to hedge certain market risks, to provide a substitute for purchasing or selling particular securities or to increase potential income gain.

Forward Currency Contracts: A forward currency contract ("forward contract") is an agreement between two parties to buy or sell a currency at an agreed upon price for settlement at a future date. During the period the forward contract is in existence, changes in the value of the forward contract will fluctuate with changes in the currency exchange rates. The forward contract is marked to market daily and these changes are recorded as an unrealized gain or loss. Gain or loss on the purchase or sale of a forward contract is realized on the settlement date.

The Fund invests in forward contracts to hedge against fluctuations in the value of foreign currencies caused by changes in the prevailing currency exchange rates. The use of forward contracts involves the risk that the counterparties may be unable to meet the terms of their contracts and may be negatively impacted from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

The average quarterly U.S. dollar value of forward currency contracts to be delivered or received during the year ended December 31, 2022 was $22,981,594, which represents the volume of activity during the period.

Credit Default Swap Agreements: Credit default swap agreements may involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk. A buyer generally also will lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. If a credit event were to occur, the value of any deliverable obligation received by the seller (if any), coupled with the upfront or periodic payments previously received, may be less than the full notional value it pays to the buyer, resulting in a loss of value to the seller. When the Fund acts as a seller of a credit default swap, it is exposed to many of the same risks of leverage described herein since if an event of default occurs, the seller must pay the buyer the full notional value of the reference obligation.

Although the Fund may seek to realize gains by selling credit default swaps that increase in value, to realize gains on selling credit default swaps, an active secondary market for such instruments must exist or the Fund must otherwise be able to close out these transactions at advantageous times. In addition to the risk of losses described above, if no such secondary market exists or the Fund is otherwise unable to close out these transactions at advantageous times, selling credit default swaps may not be profitable for the Fund.

The average quarterly notional value of swap contracts outstanding during the year ended December 31, 2022 was $4,000,000, which represents the volume of activity during the period.

The following table sets forth the fair value of the Fund's derivative instruments:

Derivatives	Statement of Assets and Liabilities	Value as of December 31, 2022
Forward currency contracts	Unrealized appreciation on forward currency contracts (assets)	$	498,842
Forward currency contracts	Unrealized depreciation on forward currency contracts (liabilities)		(689,061	)

The following table sets forth the effect of derivative instruments on the Statement of Operations for the year ended December 31, 2022:

Derivatives	Location of Gains (Losses) on Derivatives Recognized in Income	Net Realized Gain (Loss)			Net Change in Unrealized Appreciation (Depreciation)
Credit default swap contracts	Swap contracts	$	(370,372	)	$	(115,169	)
Forward currency contracts	Forward currency contracts		1,668,480			(161,497	)
Futures contracts	Futures contracts		77,458			—
Total		$	1,375,566		$	(276,666	)

The Fund has not offset derivative assets and liabilities or financial assets, including cash, that may be received or paid as part of collateral arrangements. There is no enforceable master netting agreement in place that provides the Fund, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty's rights and obligations.

2022 Annual Report
49

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

Below is the gross and net information about instruments and transactions eligible for offset in the Statement of Assets and Liabilities as well as instruments and transactions subject to an agreement similar to a master netting arrangement:

	Gross Amounts		Gross Amounts Offset in the Statement of Assets and Liabilities		Net Amounts Presented in the Statement of Assets and Liabilities		Non-Cash Collateral (Pledged) Received		Non-Cash Collateral (Pledged) Received		Net Amount
Assets:
Forward currency contracts	$	498,842	$	—	$	498,842	$	—	$	—	$	498,842
Liabilities:
Forward currency contracts		689,061		—		689,061		—		689,061		—

4. Investment Advisory Agreement and Transactions with Related Parties

The Fund has entered into an Investment Advisory Agreement (the "Advisory Agreement") with the Adviser under which the Adviser is responsible for the management of the Fund's portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. The Advisory Agreement provides that the Fund shall pay the Adviser a monthly fee for its services at an annual rate of 1.25% of the Fund's average daily net assets plus the amount of borrowing for investment purposes ("Managed Assets").

Pursuant to an operating expense limitation agreement (the "Expense Limitation Agreement"), the Adviser has contractually agreed to waive all or a portion of its investment advisory fees and/or to reimburse certain expenses of the Fund, including organizational expenses and offering costs, to the extent necessary to maintain the Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement (excluding any front-end or contingent deferred sales loads, brokerage commissions and other transactional expenses, acquired fund fees and expenses, interest (including, "Interest Payments on Borrowed Funds"), taxes, and extraordinary expenses, such as litigation; and other expenses not incurred in the ordinary course of the Fund's business) at no more than 2.10% for Class D shares and 2.85% for Class T shares. The Expense Limitation Agreement will continue until at least October 31, 2023 and may not be terminated by the Fund or the Adviser before such time. Thereafter, the Expense Limitation Agreement may only be terminated or amended to increase the expense cap, provided that in the case of a termination by the Adviser, the Adviser will provide the Board with written notice of its intention to terminate the arrangement prior to the expiration of its then current term. Any waivers and/or reimbursements made by the Adviser are subject to recoupment from the Fund for a period not to exceed three years after the occurrence of the waiver and/or reimbursement, provided that the Fund may only make repayments to the Adviser if such repayment does not cause the Fund's expense ratio (after the repayment is taken into account) to exceed the lesser of: (1) the expense cap in place at the time such amounts were waived; and (2) the Fund's current expense cap.

For the year ended December 31, 2022, the Adviser waived fees of $6,577 and recouped previously waived eligible expenses of $208,765, for a net expense recoupment of $202,188 which is reflected on the Fund's Statement of Operations.

The amount of investment advisory fees waived and/or expenses reimbursed available to be recouped before expiration is $394,610 and $6,577, which will expire on December 31, 2024 and December 31, 2025, respectively.

The Fund has entered into an administration agreement ("Administration Agreement") with the Administrator and a sub-administration agreement with U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (the "Sub-Administrator"). The Administrator and the Sub-Administrator perform administrative services

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

necessary for the operation of the Fund, including maintaining certain books and records of the Fund and preparing reports and other documents required by federal, state and other applicable laws and regulations, and providing the Fund with administrative office facilities. The Adviser is responsible for any fees due to the Administrator and the Fund is responsible for any fees due to the Sub-Administrator.

Certain officers and/or directors of the Fund are officers and/or employees of the Administrator.

5. Purchases and Sales of Investments

For the year ended December 31, 2022, purchases and sales of investments (including principal payups and paydowns), excluding short-term securities and U.S. government securities, were $87,994,500 and $39,882,011, respectively.

For the year ended December 31, 2022, there were no purchases and sales of long-term U.S. Government securities.

6. Credit Facility

The Fund has established a Senior Secured Revolving Credit Facility (the "Credit Facility") in the aggregate principal amount of up to $75,000,000 with Sumitomo Mitsui Banking Corporation ("Sumitomo") for investment purposes subject to the limitations of the 1940 Act for borrowings by registered investment companies. The Credit Facility stated maturity date is December 31, 2023. The Fund pays interest in the amount of the London Interbank Offered Rate plus 1.25% on the Credit Facility outstanding if the borrowing is a Eurodollar Loan as defined in the Credit Facility agreement, or the highest of (i) Sumitomo prime rate as announced by Sumitomo in New York City, (ii) the sum of (x) the Federal Funds Rate plus (y) 1.00%, and (iii) the sum of (x) the London interbank market with a one (1) month maturity plus (y) 1.00%, ("Base Rate") plus 0.25% if the borrowing is a Base Rate Loan as defined in the Credit Facility agreement on the Credit Facility outstanding. The Fund also pays an unused commitment fee of 0.20% on the Credit Facility that is unused. As of December 31, 2022, the Fund incurred debt issuance costs of $293,629. These costs were recorded as a deferred charge and are being amortized over the two year term of the Credit Facility.

As of December 31, 2022, the Fund had outstanding borrowings of $20,000,000. For the year ended December 31, 2022, the components of interest and unused commitment fees expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the Credit Facility were as follows:

Stated interest expense	$	518,269
Unused commitment fees	$	123,001
Amortization of debt issuance costs	$	150,545
Total interest expense and credit facility fees	$	791,336
Average stated interest rate		3.51	%
Average outstanding balance	$	18,829,787

According to terms of the Credit Facility agreement, 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 maintaining a ratio of total assets (less total liabilities other than senior securities representing indebtedness) to senior securities representing indebtedness of the Fund of not less than 300%. These covenants are subject to important limitations and exceptions that are described in the documents governing the Credit Facility. As of December 31, 2022, the Fund was in compliance with the terms of the Credit Facility.

7. Capital Shares

The Fund is authorized to issue up to 1,000,000,000 shares of common stock, $0.001 par value per share, 500,000,000 of which have been classified as Class D shares and 500,000,000 of which have been classified as Class T shares (collectively, "Shares" and respectively, "Class D shares" and "Class T shares"). As of December 31, 2022, the Adviser owned 92% of the shares outstanding of Class D shares. The Board may, without any action by the shareholders, amend the Charter from time to time to increase or decrease the aggregate number of shares or

2022 Annual Report
51

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

the number of shares of any class or series that the Fund has authority to issue under the Charter and the 1940 Act. In addition, the Charter authorizes the Board, without any action by the shareholders, to classify and reclassify any unissued common shares and preferred stock into other classes or series of shares from time to time by setting or changing the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption for each class or series. Although the Fund has no present intention of doing so, it could issue a class or series of shares that could delay, defer or prevent a transaction or a change in control of the Fund that might otherwise be in the shareholders' best interests. Under Maryland law, shareholders generally are not liable for the Fund's debts or obligations.

All common shares offered will be, upon issuance, duly authorized, fully paid and nonassessable. Holders of common shares are entitled to receive distributions when authorized by the Board and declared by the Fund out of assets legally available for the payment of distributions. Holders of common shares have no preference, conversion, exchange, sinking fund, redemption or appraisal rights and have no preemptive rights to subscribe for any of the Fund's securities. All common shares have equal distribution, liquidation and other rights. The Fund may offer multiple classes of common shares, which may be subject to differing fees and expenses. Distributions may vary among the classes as a result of the different fee structure of the classes.

8. Repurchase Offers

As a continuously offered, closed-end interval fund, the Fund has adopted a fundamental investment policy to make offers to repurchase Shares in order to provide liquidity to shareholders. No shareholder will have the right to require the Fund to repurchase its Shares, except as permitted by the Fund's Interval Fund structure. No public market for the Shares exists, and none is expected to develop in the future. Consequently, shareholders generally will not be able to liquidate their investment other than as a result of repurchases of their Shares by the Fund, and then only on a limited basis.

The Fund has adopted, pursuant to Rule 23c-3 under the 1940 Act, a fundamental policy, which cannot be changed without shareholder approval, requiring the Fund to offer to repurchase at least 5% and up to 25% of its Shares at NAV on a quarterly basis. Although the policy permits quarterly repurchases of between 5% and 25% of the Fund's outstanding Shares, the Fund currently expects to offer to repurchase at least 5% of the Fund's outstanding Shares at NAV, which is the minimum amount permitted.

During the year ended December 31, 2022, the Fund completed four quarterly repurchase offers in which the Fund offered to repurchase up to 10% of its outstanding shares. The result of the repurchase offers were as follows:

Repurchase Offer #1

Repurchase Offer #2

Repurchase Offer #3

Repurchase Offer #4

Commencement Date

January 10, 2022

April 11, 2022

July 11, 2022

October 11, 2022

Repurchase Request Deadline

February 18, 2022

May 20, 2022

August 19, 2022

November 18, 2022

Repurchase Pricing Date

February 18, 2022

May 20, 2022

August 19, 2022

November 18, 2022

Dollar Amount Repurchased

None

59,881

Shares Repurchased

None

6,820

9. Federal Income Tax Information

The Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income or excise tax provision is required. The Fund may incur an excise tax to the extent it has not distributed all of its taxable income on a calendar year basis.

GAAP provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. An evaluation of tax positions taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the taxing authority is required. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be booked as a tax expense in the current year and recognized as: a liability for unrecognized tax benefits; a reduction of an income tax refund

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

receivable; a reduction of a deferred tax asset; an increase in a deferred tax liability; or a combination thereof. As of December 31, 2022, the Fund has determined that there are no uncertain tax positions or tax liabilities required to be accrued.

The Fund has reviewed the taxable years open for examination (i.e. not barred by the applicable statute of limitations) by taxing authorities of all major jurisdictions, including the Internal Revenue Service. As of December 31, 2022, open taxable periods consisted of the taxable periods ended December 31, 2021 and December 31, 2022. No examination of the Fund's tax returns is currently in progress.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.

The federal income tax information referenced below is as of the Fund's most recently completed tax year-end of December 31, 2022.

The tax character of distributions paid for the periods shown below were as follows:

	Year Ended December 31, 2022		Period from November 1, 2021¹ to December 31, 2021
Ordinary income	$	10,683,466	$	194,726	*
Return of capital		—		—
Total	$	10,683,466	$	194,726

¹ Commencement of operations.

* In order to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, the Fund distributed an additional amount of $41,034 with a record date of December 31, 2021 and ex-date and payable date of January 3, 2022.

At December 31, 2022, the Fund's most recently completed tax year-end, the components of net assets (excluding paid-in capital) on a tax basis were as follows:

Capital loss carryforwards⁽¹⁾	$	(3,098,894	)
Late year ordinary losses		(1,427,772	)
Other accumulated losses		(26,970	)
Tax basis unrealized depreciation on investments and foreign currency		(16,751,519	)
Total tax basis net accumulated losses	$	(21,305,155	)

⁽¹⁾ To the extent that future capital gains are offset by capital loss carryforwards, such gains will not be distributed.

The Fund deferred, on a tax basis, late year ordinary losses of $1,427,772.

As of December 31, 2022, the Fund had short-term and long-term capital loss carryforwards of $2,912,695 and $186,199, respectively. The capital loss carryforwards will not expire.

Federal Income Tax Basis: The federal income tax basis of the Fund's investments, not including foreign currency translations, at December 31, 2022 was as follows:

Cost of Investments				Gross Unrealized Appreciation				Gross Unrealized Depreciation				Net Unrealized Depreciation
$	186,803,560			$	1,790,976			$	(18,542,495	)		$	(16,751,519	)

Capital Account Reclassifications: Because federal income tax regulations differ in certain respects from GAAP, income and capital gain distributions, if any, determined in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. These differences are primarily

2022 Annual Report
53

OAKTREE DIVERSIFIED INCOME FUND INC.

Notes to Consolidated Financial Statements (continued)

December 31, 2022

due to differing treatments for Section 988 currency. Permanent book and tax differences, if any, will result in reclassifications to paid-in capital or to undistributed capital gains. These reclassifications have no effect on net assets or NAV per share. Any undistributed net income and realized gain remaining at fiscal year end is distributed in the following year.

At December 31, 2022, the Fund's most recently completed tax year-end, the Fund's components of net assets were increased or (decreased) by the amounts shown in the table below:

Paid-in capital				Accumulated income (losses)
$	(50,011	)		$	50,011

10. Commitments and Contingencies

Under the Fund's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Fund enters into contracts with its vendors and others that provide for indemnification. The Fund's maximum exposure under these arrangements is unknown, since this would involve the resolution of certain claims, as well as future claims that may be made, against the Fund. Thus, an estimate of the financial impact, if any, of these arrangements cannot be made at this time. However, based on experience, the Fund expects the risk of loss due to these warranties and indemnities to be unlikely.

In conjunction with the ownership of senior loans, the Fund is party to certain credit agreements, which may require the Fund to extend additional loans to investee companies. 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. The Fund uses the same investment criteria in making these commitments as it does in making investments. The unfunded liability associated with these credit agreements is equal to the amount by which the contractual loan commitment exceeds the sum of the amount of funded debt and cash held in escrow, if any. As of December 31, 2022, the Fund had $7,167,060 in outstanding commitments.

11. Subsequent Events

GAAP requires recognition in the financial statements of the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the Statement of Assets and Liabilities. For non-recognized subsequent events that must be disclosed to keep the financial statements from being misleading, the Fund is required to disclose the nature of the event as well as an estimate of its financial effect, or a statement that such an estimate cannot be made.

The Fund completed a quarterly repurchase offer in which the Fund offered to repurchase up to 10% of its outstanding shares on February 13, 2023. The result of the repurchase offer was as follows:

	Repurchase Offer
Commencement Date	January 9, 2023
Repurchase Request Deadline	February 13, 2023
Repurchase Pricing Date	February 13, 2023
Dollar Amount Repurchased	$	133,789
Shares Repurchased		15,066

Management has evaluated subsequent events in the preparation of the Fund's financial statements and has determined that there are no additional events that require recognition or disclosure in the financial statements.

OAKTREE DIVERSIFIED INCOME FUND INC.

Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of Oaktree Diversified Income Fund Inc.

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying consolidated statement of assets and liabilities of Oaktree Diversified Income Fund Inc. and subsidiary (the "Fund"), including the consolidated schedule of investments, as of December 31, 2022, the related consolidated statements of operations and cash flows for the year then ended, the statements of changes in net assets, and financial highlights for the year then ended and for the period from November 1, 2021 (commencement of operations) through December 31, 2021, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2022, and the results of its operations and its cash flows for the year then ended, the changes in its net assets, and the financial highlights for each of the periods presented in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian, agent banks and brokers; when replies were not received from agent banks and brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Chicago, Illinois
February 28, 2023

We have served as the auditor of one or more Brookfield Public Securities Group LLC's investment companies since 2011.

2022 Annual Report
55

OAKTREE DIVERSIFIED INCOME FUND INC.

Tax Information (Unaudited)

For the period ended December 31, 2022, certain dividends paid by the Fund may be subject to a maximum tax rate of 23.8%, as provided for by the Tax Cuts and Jobs Act of 2017. The percentage of dividends declared from ordinary income designated as qualified dividend income was 0.00%.

For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal period ended December 31, 2022 was 0.00%.

The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) was 0.00%.

OAKTREE DIVERSIFIED INCOME FUND INC.

Additional Information Regarding the Fund (Unaudited)

INVESTMENT OBJECTIVE AND PRINCIPAL STRATEGIES

The Fund's investment objective is to seek current income and attractive total return. The Fund seeks to achieve its investment objective by investing globally, including in emerging market countries, in high-conviction opportunities across Oaktree Fund Advisors, LLC's (the "Adviser") performing credit platform of high-yield bonds, senior loans, including covenant-lite loans, structured credit, emerging markets debt and convertibles, inclusive of public sector companies that trade on the public markets and private companies that do not have securities trading on the public markets. High-conviction opportunities are investment opportunities that fall within the Fund's investment strategy, which are identified by the Adviser based on its holistic, bottom-up proprietary research and credit analysis, including analysis of fundamental, valuation, technical and other market factors. The Adviser's performing credit platform encompasses a broad array of credit strategy groups that invest in public and private corporate credit instruments across the liquidity spectrum. The Adviser utilizes its performing credit platform which consists of investment opportunities in public and private corporate credit instruments across the liquidity spectrum. High-yield bonds are also referred to as "below-investment grade rated securities" or "junk bonds," as described in the Prospectus. Structured credit may include collateralized loan obligations (CLOs), commercial mortgage-backed securities (CMBS) and other asset-backed securities. The Fund seeks to add value through three sources: (1) providing exposure to asset classes that require specialized expertise; (2) performing well in each asset class through proprietary, bottom-up and credit research; and (3) allocating capital opportunistically among asset classes based on the Adviser's assessment of relative value.

Under normal market conditions, the Fund will attempt to achieve its investment objective by investing, as a principal strategy, at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in credit related investments, including, but not limited to, fixed income securities (investment grade debt and high-yield debt), floating rate securities (senior loans or structured credit) and other debt instruments and in derivatives (futures, forward contracts, foreign currency exchange contracts, call and put options, selling or purchasing credit default swaps, and total return swaps) and other instruments that have economic characteristics similar to such securities or investments (the "80% Policy"). The Fund may invest in investment grade and below-investment grade rated debt instruments and securities of sovereign and quasi-sovereign issuers, including debt issued by national, regional or local governments and other agencies. The Fund may invest in securities denominated in U.S. dollars or in other foreign currencies.

The Fund may change the 80% Policy without Shareholder approval. The Fund will provide Shareholders with written notice at least 60 days prior to the implementation of any such changes.

It is expected that the Fund normally will have a short average portfolio duration (i.e., within a 11/2 to 3-year range), as calculated by the Adviser, although it may be shorter or longer at any time or from time to time depending on market conditions and other factors. While the Fund seeks to maintain a short average portfolio duration, there is no limit on the maturity or duration of any individual security in which the Fund may invest. Duration is a measure used to determine the sensitivity of a security's price to changes in interest rates. The Fund's duration strategy may entail maintaining a negative average portfolio duration from time to time, which would potentially benefit the portfolio in an environment of rising market interest rates but would generally adversely impact the portfolio in an environment of falling or neutral market interest rates.

PERIODIC REPURCHASE OFFERS

The Fund is an "interval fund," a type of fund that, in order to provide liquidity to Shareholders, has adopted a fundamental investment policy, which may only be changed with Shareholder approval, to make quarterly offers to repurchase between 5% and 25% of its outstanding Shares at NAV ("Interval Fund"). Subject to applicable law and approval of the Fund's Board of Directors (the "Board" or "Board of Directors"), for each quarterly repurchase offer, the Fund currently expects to offer to repurchase at least 5% of the Fund's outstanding Shares at NAV, which is the minimum amount permitted. Written notification of each quarterly repurchase offer (the "Repurchase Offer Notice") will be sent to Shareholders at least 21 calendar days before the repurchase request deadline (i.e., the date by

2022 Annual Report
57

OAKTREE DIVERSIFIED INCOME FUND INC.

Additional Information Regarding the Fund (Unaudited) (continued)

which Shareholders can tender their Shares in response to a repurchase offer) (the "Repurchase Request Deadline"). The Fund expects the first repurchase offer to be issued within six months following effectiveness of the Fund's Registration Statement. The Fund does not currently charge a repurchase fee. However, in the future the Fund may charge a repurchase fee of up to 2.00%, which the Fund would retain to help offset non-de minimis estimated costs related to the repurchase incurred by the Fund, directly or indirectly, as a result of repurchasing Shares, thus allocating estimated transaction costs to the Shareholder whose Shares are being repurchased. The Fund may introduce, or modify the amount of, a repurchase fee at any time. The Fund will provide advance notice to Shareholders of any such introduction or modification of the repurchase fee. The Fund may also waive or reduce a repurchase fee if the Adviser determines that the repurchase is offset by a corresponding purchase or if for other reasons the Fund will not incur transaction costs or will incur reduced transaction costs. The Fund's Shares are not listed for trading on any securities exchange. There is currently no secondary market for its Shares and the Fund does not expect any secondary market to develop for its Shares. Accordingly, you may not be able to sell Shares when and/or in the amount that you desire. Investors should consider Shares of the Fund to be an illiquid investment. Thus, the Shares are appropriate only as a long-term investment. In addition, the Fund's repurchase offers may subject the Fund and Shareholders to special risks.

LEVERAGE

The Fund intends to add leverage to its portfolio by utilizing borrowings, such as through bank loans and/or other credit facilities, including through one or more subsidiaries. Although it has no current intention to do so, the Fund may also determine to issue preferred shares or other types of senior securities to add leverage to its portfolio. The Fund's Board of Directors may authorize the issuance of preferred shares without the approval of Shareholders; however, the Fund is not permitted under the Investment Company Act of 1940, as amended (the "1940 Act" or the "Investment Company Act"), to issue preferred shares as of the date of the Prospectus. If the Fund issues preferred shares in the future, all costs and expenses relating to the issuance and ongoing maintenance of the preferred shares will be borne by the Shareholders, and these costs and expenses may be significant. The Fund may choose to increase or decrease, or eliminate entirely, its use of leverage over time and from time to time based on the Adviser's assessment of the yield curve environment, interest rate trends, market conditions and other factors. Under the 1940 Act, the Fund may use borrowings, including loans from certain financial institutions and the issuance of debt securities, in an aggregate amount of up to 331/3% of the Fund's total assets plus the amount of any such borrowings. Furthermore, the Fund may add leverage to its portfolio through the issuance of preferred shares in an aggregate amount of up to 50% of the Fund's total assets immediately after such issuance. By using leverage, the Fund seeks to obtain a higher return for holders of Shares than if the Fund did not use leverage. Leveraging is a speculative technique and there are special risks and costs involved. There can be no assurance that a leveraging strategy will be used or that it will be successful during any period in which it is employed.

SUMMARY OF PRINCIPAL RISKS OF THE FUND

Investing in the Fund's Shares involves a number of significant risks. Below is a summary of some of the principal risks of investing in the Fund. Before you invest in the Fund's Shares, you should be aware of various risks, including those described below.

No Operating History

The Fund is a newly organized, diversified, closed-end management investment company. The Fund has a limited history of operations and no history of public trading and is subject to all of the business risks and uncertainties associated with any new business. As a result, prospective investors have a limited track record or history on which to base their investment decisions. The Fund is designed for long-term investors and not as a trading vehicle.

OAKTREE DIVERSIFIED INCOME FUND INC.

Additional Information Regarding the Fund (Unaudited) (continued)

Investment Risk

An investment in the Fund's Shares is subject to investment risk, including the possible loss of the entire principal amount invested. An investment in the Shares represents an indirect investment in the investments and other financial assets owned by the Fund. The value of the Fund's investments will generally fluctuate with, among other things, changes in prevailing interest rates, federal tax rates, counterparty risk, general economic conditions, the condition of certain financial markets, developments or trends in any particular industry and the financial condition of the issuer. Lower-quality debt securities involve greater risk of default or price changes and their value can fluctuate, especially during periods of increased market volatility, economic recessions or periods of high interest rates. The Fund anticipates using leverage, which would magnify the Fund's investment, market and certain other risks.

Asset Allocation Risk

The Fund's investment performance depends upon how its assets are allocated and reallocated. A principal risk of investing in the Fund is that the Adviser may make less than optimal or poor asset allocation decisions. The Adviser employs an active approach to allocation across multiple sectors, but there is no guarantee that such allocation techniques will produce the desired results. It is possible that the Adviser will focus on an investment that performs poorly or underperforms other investments under various market conditions. You could lose money on your investment in the Fund as a result of these allocation decisions.

Issuer Risk

The value of securities may decline for a number of reasons that directly relate to a security's issuer, such as its financial strength, management performance, financial leverage and reduced demand for the issuer's goods and services, as well as the historical and prospective earnings of the issuer and the value of its assets. A change in the financial condition of a single issuer may affect securities markets as a whole. These risks can apply to the Shares issued by the Fund and to the issuers of securities and other instruments in which the Fund invests.

Repurchase Offers Risk

As described under "Periodic Repurchase Offers" above, the Fund is an Interval Fund and, in order to provide liquidity to Shareholders, the Fund, subject to applicable law, conducts quarterly repurchase offers of the Fund's outstanding Shares at NAV, subject to approval of the Board of Directors. In all cases such repurchases will be for at least 5% and not more than 25% of its outstanding Shares at NAV, pursuant to Rule 23c-3 under the 1940 Act. The Fund believes that these repurchase offers are generally beneficial to the Fund's Shareholders, and repurchases generally will be funded from available cash or sales of portfolio securities. However, repurchase offers and the need to fund repurchase obligations may affect the ability of the Fund to be fully invested or force the Fund to maintain a higher percentage of its assets in liquid investments, which may harm the Fund's investment performance. Moreover, diminution in the size of the Fund through repurchases may result in untimely sales of portfolio securities (with associated imputed transaction costs, which may be significant), and may limit the ability of the Fund to participate in new investment opportunities or to achieve its investment objective. The Fund may accumulate cash by holding back (i.e., not reinvesting) payments received in connection with the Fund's investments. The Fund believes that payments received in connection with the Fund's investments will generate sufficient cash to meet the maximum potential amount of the Fund's repurchase obligations. If at any time cash and other liquid assets held by the Fund are not sufficient to meet the Fund's repurchase obligations, the Fund intends, if necessary, to sell investments. If, as expected, the Fund employs investment leverage, repurchases of Shares would compound the adverse effects of leverage in a declining market. In addition, if the Fund borrows to finance repurchases, interest on that borrowing will negatively affect Shareholders who do not tender their Shares by increasing the Fund's expenses and reducing any net investment income.

If a repurchase offer is oversubscribed, the Fund may determine to increase the amount repurchased by up to 2% of the Fund's outstanding shares as of the date of the Repurchase Request Deadline. In the event that the Fund determines not to repurchase more than the repurchase offer amount, or if Shareholders tender more than the

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Additional Information Regarding the Fund (Unaudited) (continued)

repurchase offer amount plus 2% of the Fund's outstanding shares as of the date of the Repurchase Request Deadline, the Fund will repurchase the Shares tendered on a pro rata basis, and Shareholders will have to wait until the next repurchase offer to make another repurchase request. As a result, Shareholders may be unable to liquidate all or a given percentage of their investment in the Fund during a particular repurchase offer. Notwithstanding the foregoing, the Fund may in its sole discretion and for administrative convenience accept all Shares tendered for repurchase by Shareholders who own less than one hundred Shares and who tender all of their Shares, before prorating other amounts tendered. Some Shareholders, in anticipation of proration, may tender more Shares than they wish to have repurchased in a particular quarter, thereby increasing the likelihood that proration will occur. The NAV of the Fund's Shares tendered in a repurchase offer may decline between the Repurchase Request Deadline and the date on which the NAV for tendered Shares is determined. In addition, the repurchase of Shares by the Fund will be a taxable event to Shareholders, potentially even to those Shareholders that do not participate in the repurchase.

Large Shareholder Risk

To the extent a large proportion of Shares are held by a small number of Shareholders (or a single Shareholder), including affiliates of the Adviser, the Fund is subject to the risk that these Shareholders will seek to sell Shares in large amounts rapidly in connection with repurchase offers. These transactions could adversely affect the ability of the Fund to conduct its investment program. Furthermore, it is possible that in response to a repurchase offer, the total amount of Shares tendered by a small number of Shareholders (or a single Shareholder) may exceed the number of Shares that the Fund has offered to repurchase. If a repurchase offer is oversubscribed by Shareholders, the Fund will repurchase only a pro rata portion of shares tendered by each Shareholder. However, the Fund may determine to increase the repurchase offer by up to 2% of the Fund's outstanding Shares as of the date of the Repurchase Request Deadline. If the Fund only repurchases a pro rata portion of shares tendered in connection with an oversubscribed repurchase offer, Shareholders unaffiliated with the Adviser will not be given priority over Shareholders that are affiliates of the Adviser, whose holdings in the Fund may be significant and may have the effect of diluting third-party Shareholders with respect to any repurchase offer.

Management Risk

The Fund does not have internal management capacity or employees. The Fund depends on the diligence, skill and network of business contacts of the senior investment professionals of the Adviser to achieve the Fund's investment objective. The Fund expects that the Adviser will evaluate, negotiate, structure, close and monitor the Fund's investments in accordance with the terms of the management agreement between the Fund and the Adviser ("Management Agreement"). The Fund can offer no assurance, however, that the senior investment professionals of the Adviser will continue to provide investment advice to us. The loss of any member of the Adviser's investment committee or of other senior investment professionals of the Adviser and its affiliates would limit the Fund's ability to achieve its investment objective and operate as the Fund anticipates. This could have a material adverse effect on the Fund's financial condition, results of operations and cash flows.

Interest Rate Risk

General interest rate fluctuations may have a substantial negative impact on the Fund's investments and investment opportunities, and, accordingly, may have a material adverse effect on the Fund's investment objective and rate of return on investment capital. A portion of the Fund's income will depend upon the difference between the rate at which it borrows funds and the interest rate on the debt securities in which it invests. Because the Fund will borrow money to make investments and may issue debt securities, preferred stock or other securities, the Fund's net investment income is dependent upon the difference between the rate at which the Fund borrows funds or pays interest or dividends on such debt securities, preferred stock or other securities and the rate at which the Fund invests these funds. Typically, the Fund anticipates that its interest-earning investments will accrue and pay interest at both variable and fixed rates, and that its interest-bearing liabilities will accrue interest at variable and fixed rates.

OAKTREE DIVERSIFIED INCOME FUND INC.

Additional Information Regarding the Fund (Unaudited) (continued)

High-Yield ("Junk") Securities Risk

Investors should recognize that below investment grade and unrated securities in which the Fund will invest subject Fund Shareholders to greater levels of credit risk, call risk and liquidity risk than funds that do not invest in such securities. Generally, lower rated or unrated securities of equivalent credit quality offer a higher return potential than higher rated securities but involve greater volatility of price and greater risk of loss of income and principal, including the possibility of a default or bankruptcy of the issuers of such securities. Lower rated securities and comparable unrated securities will likely have larger uncertainties or major risk exposure to adverse conditions and are predominantly speculative. The occurrence of adverse conditions and uncertainties would likely reduce the value of securities held by the Fund, with a commensurate effect on the value of the Fund's Shares.

Distressed Securities Risk

An investment in the securities of financially distressed issuers can involve substantial risks. These securities may present a substantial risk of default or may be in default at the time of investment. 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 a portfolio company, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Among the risks inherent in investments in a troubled entity is the fact that it frequently may be difficult to obtain information as to the true financial condition of such issuer. The Adviser's judgment about the credit quality of the issuer and the relative value and liquidity of its securities may prove to be wrong.

Bank Loan Risk

Bank loans (including senior loans) are usually rated below investment grade. The market for bank loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods. Investments in bank loans are typically in the form of an assignment or participation. Investors in a loan participation assume the credit risk associated with the borrower and may assume the credit risk associated with an interposed financial intermediary. Accordingly, if a lead lender becomes insolvent or a loan is foreclosed, the Fund could experience delays in receiving payments or suffer a loss. In an assignment, the Fund effectively becomes a lender under the loan agreement with the same rights and obligations as the assigning bank or other financial intermediary.

Accordingly, if the loan is foreclosed, the Fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. Due to their lower place in the borrower's capital structure and possible unsecured status, junior loans involve a higher degree of overall risk than senior loans of the same borrower. In addition, the floating rate feature of loans means that bank loans will not generally experience capital appreciation in a declining interest rate environment. Declines in interest rates may also increase prepayments of debt obligations and require the Fund to invest assets at lower yields.

The Fund may also invest in second-lien loans, which entail risks including (a) the subordination of the Fund's claims to a senior lien in terms of the coverage and recovery of the collateral and (b) the prohibition of or limitation on the right to foreclose on a second-lien loan or exercise other rights as a second-lien holder. In certain cases, therefore, no recovery may be available from a defaulted second-lien loan. The level of risk associated with investments in second-lien loans increases to the extent such investments are loans of distressed or below investment grade companies.

Covenant-Lite Loans Risk

Covenant-lite loans contain fewer maintenance covenants than other types of loans, or no maintenance covenants, and may not include terms that allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached. Covenant-lite loans may carry more risk than traditional loans as they allow

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Additional Information Regarding the Fund (Unaudited) (continued)

individuals and corporations to engage in activities that would otherwise be difficult or impossible under a covenant- heavy loan agreement. In the event of default, covenant-lite loans may exhibit diminished recovery values as the lender may not have the opportunity to negotiate with the borrower prior to default.

Collateralized Loan Obligation ("CLO") Risk

CLOs and other similarly structured securities are types of asset-backed securities. The cash flows from the CLO trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the "equity" tranche which bears the bulk of defaults from the loans in the trust 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 trust typically has higher ratings and lower yields than the underlying securities, and can be rated investment grade. Despite the protection from the equity 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 class of the CLO in which the Fund invests. Normally, CLOs and other similarly structured securities are privately offered and sold, and thus are not registered under the securities laws. As a result, investments in CLOs may be characterized by the Fund as illiquid securities; however, an active dealer market, or other relevant measures of liquidity, may exist for CLOs allowing a CLO potentially to be deemed liquid by the Adviser under liquidity policies approved by the Fund's Board of Directors. In addition to the risks associated with debt instruments (e.g., interest rate risk and credit risk), CLOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the possibility that the Fund may invest in CLOs that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Mortgage and Asset-Backed Securities

The Fund may invest in a variety of mortgage related and other asset-backed securities, including both commercial and residential mortgage securities and other mortgage-backed instruments issued on a public or private basis. Mortgage-backed securities represent the right to receive a portion of principal and/or interest payments made on a pool of residential or commercial mortgage loans. When interest rates fall, borrowers may refinance or otherwise repay principal on their mortgages earlier than scheduled. When this happens, certain types of mortgage-backed securities will be paid off more quickly than originally anticipated and the Fund will have to invest the proceeds in securities with lower yields. This risk is known as "prepayment risk." When interest rates rise, certain types of mortgage-backed securities will be paid off more slowly than originally anticipated and the value of these securities will fall. This risk is known as "extension risk." Because of prepayment risk, mortgage-backed securities react differently to changes in interest rates than other fixed income securities. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities.

Residential Mortgage-Backed Securities Risk

The investment characteristics of RMBS differ from those of traditional debt securities. The major differences include the fact that, on certain RMBS, prepayments of principal may be made at any time. Prepayment rates are influenced by changes in current interest rates and a variety of economic, geographic, social and other factors and cannot be predicted with certainty. Subordinated classes of CMOs are entitled to receive repayment of principal in many cases only after all required principal payments have been made to more senior classes and also have subordinated rights as to receipt of interest distributions. Such subordinated classes are subject to a greater risk of non-payment than are senior classes of CMOs guaranteed by an agency or instrumentality of the U.S. Government.

OAKTREE DIVERSIFIED INCOME FUND INC.

Additional Information Regarding the Fund (Unaudited) (continued)

Commercial Mortgage-Backed Securities Risk

CMBS may involve the risks of delinquent payments of interest and principal, early prepayments and potentially unrecoverable principal loss from the sale of foreclosed property. Subordinated classes of CMBS are entitled to receive repayment of principal only after all required principal payments have been made to more senior classes and also have subordinated rights as to receipt of interest distributions. Such subordinated classes are subject to a greater risk of non-payment than are senior classes.

Derivatives Risk

The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks, such as liquidity risk (which may be heightened for highly-customized derivatives), interest rate risk, market risk, credit risk, leveraging risk, counterparty risk, tax risk, and management risk, as well as risks arising from changes in applicable requirements. They also involve the risk of mispricing, the risk of unfavorable or ambiguous documentation and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. The Fund's use of derivatives may increase or accelerate the amount of taxes payable by Shareholders.

The regulation of the derivatives markets has increased over the past several years, and additional future regulation of the derivatives markets may make derivatives more costly, may limit the availability or reduce the liquidity of derivatives or may otherwise adversely affect the value or performance of derivatives. For instance, in October 2020, the SEC adopted Rule 18f-4 under the 1940 Act providing for the regulation of a registered investment company's use of derivatives, short sales, reverse repurchase agreements, and certain other instruments. Under Rule 18f-4, a fund's derivatives exposure is limited through a value-at-risk test and requires the adoption and implementation of a derivatives risk management program for certain derivatives users. However, subject to certain conditions, funds that do not invest heavily in derivatives may be deemed limited derivatives users (as defined in Rule 18f-4) and would not be subject to the full requirements of Rule 18f-4. In connection with the adoption of Rule 18f-4, the SEC also eliminated the asset segregation and cover framework arising from prior SEC guidance for covering derivatives and certain financial instruments, effective at the time that the Fund complies with Rule 18f-4. Rule 18f-4 could limit the Fund's ability to engage in certain derivatives and other transactions and/or increase the costs of such transactions, which could adversely affect the value or performance of the Fund. Compliance with Rule 18f-4 will be required in August 2022.

Privacy and Data Security Laws

Many jurisdictions in which the Fund and its portfolio companies operate have laws and regulations relating to data privacy, cyber security and protection of personal information, including the General Data Protection Regulation ("GDPR") in the European Union that went into effect in May 2018 and the California Consumer Privacy Act ("CCPA") that took effect in January 2020 and provides for enhanced consumer protections for California residents, a private right of action for data breaches and statutory fines for data breaches or other CCPA violations. If the Fund or the Adviser fail to comply with the relevant laws and regulations, it could result in regulatory investigations and penalties, which could lead to negative publicity and may cause investors and clients to lose confidence in the effectiveness of the Fund's security measures.

Liquidity Risk

The Fund intends to invest in illiquid investments. An illiquid investment is a security or other investment that cannot be sold or disposed of within seven days or less in current market conditions without the sale or disposition significantly changing the market value of the investment. Illiquid investments often can be resold only in privately negotiated transactions with a limited number of purchasers or in a public offering registered under the Securities Act of 1933, as amended (the "1933 Act"). Considerable delay could be encountered in either event and, unless otherwise contractually provided, the Fund's proceeds upon sale may be reduced by the costs of registration or underwriting discounts. The difficulties and delays associated with such transactions could result in the Fund's

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Additional Information Regarding the Fund (Unaudited) (continued)

inability to realize a favorable price upon disposition of illiquid investments, and at times might make disposition of such securities impossible.

Valuation Risk

The Adviser may use an independent pricing service or prices provided by dealers to value certain fixed income securities at their market value. Because the secondary markets for certain investments may be limited, they may be difficult to value. When market quotations are not readily available or are deemed to be unreliable, the Fund values its investments at fair value as determined in good faith pursuant to policies and procedures approved by the Board of Directors. Fair value pricing may require subjective determinations about the value of a security or other asset. As a result, there can be no assurance that fair value pricing will result in adjustments to the prices of securities or other assets, or that fair value pricing will reflect actual market value, and it is possible that the fair value determined for a security or other asset will be materially different from quoted or published prices, from the prices used by others for the same security or other asset and/or from the value that actually could be or is realized upon the sale of that security or other asset. Where market quotations are not readily available, valuation may require more research than for more liquid investments.

Leverage Risk

The Fund currently intends to use leverage to seek to achieve its investment objective. The borrowing of money or issuance of debt securities and preferred stock represents the leveraging of the Fund's common stock. In addition, the Fund may also leverage its Shares through investment techniques, such as reverse repurchase agreements, writing credit default swaps, or futures. Leverage creates risks that may adversely affect the return for the holders of common stock.

Leverage is a speculative technique that could adversely affect the returns to Shareholders. Leverage can cause the Fund to lose money and can magnify the effect of any losses. To the extent the income or capital appreciation derived from securities purchased with funds received from leverage exceeds the cost of leverage, the Fund's return will be greater than if leverage had not been used. Conversely, if the income or capital appreciation from the securities purchased with such funds is not sufficient to cover the cost of leverage or if the Fund incurs capital losses, the return of the Fund will be less than if leverage had not been used, and therefore the amount available for distribution to Shareholders as dividends and other distributions will be reduced or potentially eliminated (or, in the case of distributions, will consist of return of capital).

The Fund will pay (and the Shareholders will bear) all costs and expenses relating to the Fund's use of leverage, which will result in the reduction of the NAV of the Shares.

Focused Investment Risk

To the extent that the Fund focuses its investments in a particular sector or country, the NAV of the Shares will be more susceptible to events or factors affecting companies in that sector or country. These may include, but are not limited to, governmental regulation, inflation, rising interest rates, cost increases in raw materials, fuel and other operating expenses, technological innovations that may render existing products and equipment obsolete, competition from new entrants, high research and development costs, increased costs associated with compliance with environmental or other regulation and other economic, market, political or other developments specific to that sector or country. Also, the Fund may invest a substantial portion of its assets in companies in related sectors that may share common characteristics, are often subject to similar business risks and regulatory burdens and whose securities may react similarly to the types of events and factors described above, which will subject the Fund to greater risk.

OAKTREE DIVERSIFIED INCOME FUND INC.

Additional Information Regarding the Fund (Unaudited) (continued)

Risk of Regulatory Changes

Legal, tax and regulatory changes could occur and may adversely affect the Fund and its ability to pursue its investment strategies and/or increase the costs of implementing such strategies. New (or revised) laws or regulations may be imposed by the U.S. Commodity Futures Trading Commission ("CFTC"), the SEC, the U.S. Internal Revenue Service ("IRS"), the U.S. Federal Reserve or other banking regulators, other governmental regulatory authorities or self-regulatory organizations that supervise the financial markets that could adversely affect the Fund. In particular, these agencies are implementing a variety of new rules pursuant to financial reform legislation in the United States. The EU (and some other countries) are implementing similar requirements. The Fund also may be adversely affected by changes in the enforcement or interpretation of existing statutes and rules by these governmental regulatory authorities or self-regulatory organizations.

Risks Associated With Status as a Regulated Investment Company

The Fund intends to qualify for federal income tax purposes as a regulated investment company under Subchapter M of the Code. Qualification requires, among other things, compliance by the Fund with certain distribution requirements. Statutory limitations on distributions on the common shares if the Fund is leveraged and fails to satisfy the 1940 Act's asset coverage requirements could jeopardize the Fund's ability to meet such distribution requirements. The Fund presently intends, however, to purchase or redeem any outstanding leverage to the extent necessary in order to maintain compliance with such asset coverage requirements.

Potential Conflicts of Interest Risk

The Adviser and its affiliates are involved worldwide with a broad spectrum of financial services and asset management activities and may engage in the ordinary course of business in activities in which their interests or the interests of their clients may conflict with those of the Fund. The Adviser and its affiliates may provide investment management services to other funds and discretionary managed accounts that follow an investment program similar to that of the Fund. Subject to the requirements of the 1940 Act, the Adviser and its affiliates intend to engage in such activities and may receive compensation from third parties for their services. Neither the Adviser nor its affiliates are under any obligation to share any investment opportunity, idea or strategy with the Fund. As a result, the Adviser and its affiliates may compete with the Fund for appropriate investment opportunities. The results of the Fund's investment activities, therefore, may differ from those of other accounts managed by the Adviser and its affiliates, and it is possible that the Fund could sustain losses during periods in which one or more of the proprietary or other accounts managed by the Adviser or its affiliates achieve profits.

Foreign Currency Risk

The Fund's investments that are denominated in a foreign currency will be subject to the risk that the value of a particular currency may change in relation to the U.S. dollar. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation and political developments. As a result, a change in currency exchange rates may adversely affect the Fund's profitability.

Income and Distribution Risk

The income that Shareholders receive from the Fund is expected to be based in part on income from short-term gains that the Fund earns from dividends and other distributions received from its investments. If the distribution rates or yields of the Fund's holdings decrease, Shareholders' income from the Fund could decline. In selecting equity income securities in which the Fund will invest, the Adviser will consider the issuer's history of making regular periodic distributions (i.e., dividends) to its equity holders. An issuer's history of paying dividends or other distributions, however, does not guarantee that the issuer will continue to pay dividends or other distributions in the future. The dividend income stream associated with equity income securities generally is not fixed but is elected and declared at the discretion of the issuer's board of directors and will be subordinate to payment obligations of

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Additional Information Regarding the Fund (Unaudited) (continued)

the issuer on its debt and other liabilities. Accordingly, an issuer may forgo paying dividends on its equity securities. In addition, because in most instances issuers are not obligated to make periodic distributions to the holders of their equity securities, such distributions or dividends generally may be discontinued at the issuer's discretion. There can be no assurance that quarterly distributions paid by the Fund to the Shareholders will be maintained at initial levels or increase over time.

Cyber Security Risk

The occurrence of a disaster such as a cyber-attack, a natural catastrophe, an industrial accident, a terrorist attack or war, events unanticipated in the disaster recovery systems of the Fund, and Adviser, or a support failure from external providers, could have an adverse effect on the Fund's ability to conduct business and on its results of operations and financial condition, particularly if those events affect the Fund, or the Adviser's computer-based data processing, transmission, storage, and retrieval systems, or destroy data. If the Adviser was unavailable in the event of a disaster, the Fund's ability to effectively conduct its business could be severely compromised.

Emerging Markets Risk

The Fund may invest in securities of companies in an "emerging market." Investments in emerging market securities involve a greater degree of risk than, and special risks in addition to the risks associated with, investments in domestic securities or in securities of foreign, developed countries. Foreign investment risk may be particularly high to the extent that the Fund invests in securities of issuers based or doing business in emerging market countries or invests in securities denominated in the currencies of emerging market countries. Investing in securities of issuers based or doing business in emerging markets entails all of the risks of investing in securities of foreign issuers, including being less liquid, more volatile and harder to value than U.S. securities, but to a heightened degree.

Convertible Securities Risk

Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality. The market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. In the absence of adequate anti-dilutive provisions in a convertible security, dilution in the value of the Fund's holding may occur in the event the underlying stock is subdivided, additional equity securities are issued for below market value, a stock dividend is declared or the issuer enters into another type of corporate transaction that has a similar effect.

Credit Default Swaps Risk

Credit default swap agreements may involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk. A buyer generally also will lose its investment and recover nothing should no credit event occur and the swap is held to its termination date. If a credit event were to occur, the value of any deliverable obligation received by the seller (if any), coupled with the upfront or periodic payments previously received, may be less than the full notional value it pays to the buyer, resulting in a loss of value to the seller. When the Fund acts as a seller of a credit default swap, it is exposed to many of the same risks of leverage described herein since if an event of default occurs, the seller must pay the buyer the full notional value of the reference obligation.

OAKTREE DIVERSIFIED INCOME FUND INC.

Information Concerning Trustees and Officers (Unaudited)

The following tables provide information concerning the trustees and officers of the Fund.

Trustees of the Fund

Name, Address and
Year of Birth

Position(s) Held with Fund
and Term of Office and
Length of Time Served

Principal Occupation(s) During Past 5 Years and
Other Directorships Held by Trustee

Number of Portfolios
in Fund Complex¹
Overseen by Trustee

Independent Trustees

Edward A. Kuczmarski
c/o Brookfield Place,
250 Vesey Street,
New York, New York
10281-1023
Born: 1949

Trustee and Independent Chair of the Board, Member of the Audit Committee, Member of the Nominating and Compensation Committee
Served Since 2021

Director/Trustee of several investment companies advised by Brookfield Public Securities Group LLC (the "Adviser") (2011-Present).

Stuart A. McFarland
c/o Brookfield Place,
250 Vesey Street,
New York, New York
10281-1023
Born: 1947

Trustee, Member of the Audit Committee, Member of the Nominating and Compensation Committee
Served Since 2021

Director/Trustee of several investment companies advised by the Adviser (2006-Present); Director of Drive Shack Inc. (formerly, New Castle Investment Corp.) (2002-Present); Lead Independent Director of New America High Income Fund (2013-Present); Director of New Senior Investment Group, Inc. (2014-2021); Director of Steward Partners (2017-2021); Managing Partner of Federal City Capital Advisors (1997-2021).

Heather S. Goldman
c/o Brookfield Place,
250 Vesey Street,
New York, New York
10281-1023
Born: 1967

Trustee, Member of the Audit Committee, Chair of the Nominating and Compensation Committee
Served Since 2021

Director/Trustee of several investment companies advised by the Adviser (2013-Present); CEO/Board Director of Gesher USA (2015-Present); Trustee of Nevada Museum of Art (2016-2018); Co-founder, CEO and Chair of Capstak, Inc. (2014-2018); Member of the Honorary Board of University Settlement House (2014-Present); CFO of My Flex, Inc., an EQBR company (2022-Present).

William H. Wright II
c/o Brookfield Place,
250 Vesey Street,
New York, New York
10281-1023
Born: 1960

Trustee, Chair of the Audit Committee, Member of the Nominating and Compensation Committee
Served Since 2021

Director/Trustee of several investment companies advised by the Adviser (2020-Present); Director of Alcentra Capital Corporation (1940 Act BDC) (2018-2019); Advisory Director of Virtus Global Dividend & Income Fund, Virtus Global Multi-Sector Income Fund, Virtus Total Return Fund and Duff & Phelps Select Energy MLP Fund (2016-2019); Director of the Carlyle Group, TCG BDC, Inc. and TCG BDC II, Inc. (February 2021-Present).

2022 Annual Report
67

OAKTREE DIVERSIFIED INCOME FUND INC.

Information Concerning Trustees and Officers (Unaudited) (continued)

Name, Address and
Year of Birth

Position(s) Held with Fund
and Term of Office and
Length of Time Served

Principal Occupation(s) During Past 5 Years and
Other Directorships Held by Trustee

Number of Portfolios
in Fund Complex¹
Overseen by Trustee

Interested Trustee

David W. Levi
c/o Brookfield Place,
250 Vesey Street,
New York, New York
10281-1023
Born: 1971

Trustee
Served Since 2021

Director/Trustee of several investment companies advised by the Adviser (2017-Present); Chief Executive Officer of the Adviser (2019-Present); President of the Adviser (2016-2019); Chief Executive Officer of Brookfield Oaktree Wealth Solutions (2021-Present); Managing Partner of Brookfield Asset Management Inc. (2015-Present).

OAKTREE DIVERSIFIED INCOME FUND INC.

Information Concerning Trustees and Officers (Unaudited) (continued)

Officers of the Funds

Name, Address and
Year of Birth

Position(s) Held
with Fund

Term of Office and
Length of Time
Served

Principal Occupation(s) During Past 5 Years

Brian F. Hurley*
c/o Brookfield Place,
250 Vesey Street,
New York, New York
10281-1023
Born: 1977

President

Served since 2021

President of several investment companies advised by the Adviser (2014-Present); General Counsel of the Adviser (2017-Present); Managing Director (2014-Present) of the Adviser; Managing Partner of Brookfield Asset Management Inc. (2016-Present); Director of Brookfield Soundvest Capital Management (2015-2018).

Casey P. Tushaus*
c/o Brookfield Place,
250 Vesey Street,
New York, New York
10281-1023
Born: 1982

Treasurer

Served since 2021

Treasurer of several investment companies advised by the Adviser (2021-Present); Assistant Treasurer of several investment companies advised by the Adviser (2016-2021); Vice President of the Adviser (2014-2021); Director of the Adviser (2021-Present).

Craig A. Ruckman*
c/o Brookfield Place
250 Vesey Street,
New York, New York
10281-1023
Born: 1977

Secretary

Served since 2022**

Secretary of several investment companies advised by the Adviser (November 2022-Present); Managing Director of the Adviser (October 2022-Present); Director of Allianz Global Investors U.S. Holdings LLC (2016-2022); Assistant Secretary of 63 funds in the Allianz Global Investors Fund Complex (2017-2020); and Chief Legal Officer of Allianz Global Investors Distributors LLC (2019-2022).

Adam R. Sachs*
c/o Brookfield Place,
250 Vesey Street,
New York, New York
10281-1023
Born: 1984

Chief Compliance Officer ("CCO")

Served since 2021

CCO of several investment companies advised by the Adviser (2017-Present); Director of the Adviser (2017-Present); CCO of Brookfield Investment Management (Canada) Inc. (2017-Present).

Mohamed S. Rasul*
c/o Brookfield Place,
250 Vesey Street,
New York, New York
10281-1023
Born: 1981

Assistant Treasurer

Served since 2021

Assistant Treasurer of several investment companies advised by the Adviser (2016-Present); Vice President of the Adviser (2019-Present); Assistant Vice President of the Adviser (2014-2019).

* Interested person as defined by the Investment Company Act of 1940, as amended (the "1940 Act") because of affiliations with Brookfield Public Securities Group LLC, Adviser of the Fund.

** Craig A. Ruckman was appointed by the Board as the Secretary of the Fund on November 17, 2022.

¹ The Fund Complex is comprised of Brookfield Investment Funds (six series of underlying portfolios), Brookfield Real Assets Income Fund Inc., Center Coast Brookfield MLP & Energy Infrastructure Fund and Oaktree Diversified Income Fund Inc.

The Funds' Statement of Additional Information includes additional information about the trustees, and is available, without charge, upon request by calling 1-855-777-8001.

2022 Annual Report
69

OAKTREE DIVERSIFIED INCOME FUND INC.

Dividend Reinvestment Plan (Unaudited)

The Fund intends to distribute substantially all of its net investment income to shareholders in the form of dividends. The Fund intends to declare and pay distributions quarterly from net investment income. In addition, the Fund intends to distribute any net capital gains earned from the sale of portfolio securities to shareholders no less frequently than annually. Net short-term capital gains may be paid more frequently. Unless Common Shareholders specify otherwise, dividends will be reinvested in Shares of the Fund in accordance with the Fund's dividend reinvestment plan. The Fund may pay distributions from sources that may not be available in the future and that are unrelated to the Fund's performance, such as from offering proceeds and/or borrowings.

The Fund has adopted a Dividend Reinvestment Plan (the "Plan") that provides that, unless Common Shareholders elect to receive their distributions in cash, they will be automatically reinvested by U.S. Bancorp Fund Services, LLC (the "Plan Administrator"), in additional Shares. If Common Shareholders elect to receive distributions in cash, they will receive them paid by check mailed directly to them by the Plan Administrator. The Plan Administrator can be contacted through mail by writing to U.S. Bancorp Fund Services, LLC, P.O. Box 701, Milwaukee, Wisconsin 53201-0701 or by phone at 1-855-862-5873.

Shares received under the Plan will be issued to Common Shareholders at their NAV on the ex-dividend date; there is no sales or other charge for reinvestment. Common Shareholders are free to withdraw from the Plan and elect to receive cash at any time by giving written notice to the Plan Administrator or by contacting the broker or dealer, who will inform the Fund.

The Plan Administrator provides written confirmation of all transactions in the shareholder accounts in the Plan, including information Common Shareholders may need for tax records. Any proxy Common Shareholders receive will include all Shares received under the Plan.

Automatically reinvested dividends and distributions are taxed in the same manner as cash dividends and distributions.

The Fund and the Plan Administrator reserve the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. If the Plan is amended to include such service charges, the Plan Administrator will include a notification to registered holders of Shares with the Plan Administrator.

Additional information about the Plan may be obtained from the Plan Administrator.

OAKTREE DIVERSIFIED INCOME FUND INC.

Joint Notice of Privacy Policy (Unaudited)

Brookfield Public Securities Group LLC ("PSG"), on its own behalf and on behalf of the funds managed by PSG and its affiliates, recognizes and appreciates the importance of respecting the privacy of our clients and shareholders. Our relationships are based on integrity and trust and we maintain high standards to safeguard your non-public personal information ("Personal Information") at all times. This privacy policy ("Policy") describes the types of Personal Information we collect about you, the steps we take to safeguard that information and the circumstances in which it may be disclosed.

If you hold shares of a Fund through a financial intermediary, such as a broker, investment adviser, bank or trust company, the privacy policy of your financial intermediary will also govern how your Personal Information will be shared with other parties.

WHAT INFORMATION DO WE COLLECT?

We collect the following Personal Information about you:

• Information we receive from you in applications or other forms, correspondence or conversations, including but not limited to name, address, phone number, social security number, assets, income and date of birth.

• Information about transactions with us, our affiliates, or others, including but not limited to account number, balance and payment history, parties to transactions, cost basis information, and other financial information.

• Information we may receive from our due diligence, such as your creditworthiness and your credit history.

WHAT IS OUR PRIVACY POLICY?

We may share your Personal Information with our affiliates in order to provide products or services to you or to support our business needs. We will not disclose your Personal Information to nonaffiliated third parties unless 1) we have received proper consent from you; 2) we are legally permitted to do so; or 3) we reasonably believe, in good faith, that we are legally required to do so. For example, we may disclose your Personal Information with the following in order to assist us with various aspects of conducting our business, to comply with laws or industry regulations, and/or to effect any transaction on your behalf;

• Unaffiliated service providers (e.g. transfer agents, securities broker-dealers, administrators, investment advisors or other firms that assist us in maintaining and supporting financial products and services provided to you);

• Government agencies, other regulatory bodies and law enforcement officials (e.g. for reporting suspicious transactions);

• Other organizations, with your consent or as directed by you; and

• Other organizations, as permitted or required by law (e.g. for fraud protection).

When we share your Personal Information, the information is made available for limited purposes and under controlled circumstances designed to protect your privacy. We require third parties to comply with our standards for security and confidentiality.

HOW DO WE PROTECT CLIENT INFORMATION?

We restrict access to your Personal Information to those persons who require such information to assist us with providing products or services to you. It is our practice to maintain and monitor physical, electronic, and procedural safeguards that comply with federal standards to guard client nonpublic personal information. We regularly train our employees on privacy and information security and on their obligations to protect client information.

CONTACT INFORMATION

For questions concerning our Privacy Policy, please contact our client services representative at 1-855-777-8001.

2022 Annual Report
71

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CORPORATE INFORMATION

Investment Adviser

Oaktree Fund Advisors, LLC

333 South Grand Avenue, 28th Floor

Los Angeles, California 90071

www.oaktreefunds.com

Administrator

Brookfield Public Securities Group LLC

Brookfield Place

250 Vesey Street, 15th Floor

New York, New York 10281-1023

www.brookfield.com

Please direct your inquiries to:

Investor Relations

Phone: 1-855-777-8001

E-mail: publicsecurities.enquiries@brookfield.com

Transfer Agent

Shareholder inquiries relating to distributions, address changes and shareholder account information should be directed to the Fund's transfer agent:

U.S. Bancorp Fund Services, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

1-855-862-5873

Fund Accounting Agent

U.S. Bancorp Fund Services, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

Sub-Administrator

U.S. Bancorp Fund Services, LLC

1201 South Alma School Road, Suite 3000

Mesa, Arizona 85210

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

111 South Wacker Drive

Chicago, Illinois 60606

Legal Counsel

Paul Hastings LLP

200 Park Avenue

New York, New York 10166

Custodian

U.S. Bank National Association

1555 North RiverCenter Drive, Suite 302

Milwaukee, Wisconsin 53212

Distributor

Quasar Distributors, LLC

111 East Kilbourn Avenue, Suite 2200

Milwaukee, Wisconsin 53202

Directors of the Fund

Edward A. Kuczmarski				Chair of Board of Directors
William H. Wright II				Chair of Audit Committee
Heather S. Goldman				Chair of Nominating and Compensation Committee
Stuart A. McFarland				Director
David W. Levi				Director (Interested)

Officers of the Fund

Brian F. Hurley				President
Casey P. Tushaus				Treasurer
Craig A. Ruckman				Secretary
Adam R. Sachs				Chief Compliance Officer
Mohamed S. Rasul				Assistant Treasurer

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund's Forms N-PORT are available on the SEC's website at www.sec.gov.

You may obtain a description of the Fund's proxy voting policies and procedures, information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge, upon request by calling 1-855-777-8001, or go to the SEC's website at www.sec.gov.

Administrator

Brookfield Public Securities Group LLC
Brookfield Place

250 Vesey Street, 15th Floor

New York, New York 10281-1023

1-855-777-8001

www.brookfield.com

Adviser

Oaktree Fund Advisors, LLC
333 South Grand Avenue, 28th Floor
Los Angeles, California 90071
1-213-830-6300
www.oaktreecapital.com

	FYE 12/31/2022		FYE 12/31/2021
(a) Audit Fees	$	77,000	$	73,500
(b) Audit-Related Fees	$	0	$	0
(c) Tax Fees	$	10,300	$	9,800
(d) All Other Fees	$	0	$	0

	FYE 12/31/2022			FYE 12/31/2021
Audit-Related Fees		0	%		0	%
Tax Fees		0	%		0	%
All Other Fees		0	%		0	%

	Dollar Range of Securities Owned
Bruce Karsh	None
Wayne Dahl	None
Armen Panossian	None
Danielle Poli	None
David Rosenberg	None

	By (Signature and Title)	/s/ Brian F. Hurley
		Brian F. Hurley, President/Principal Executive Officer

	By (Signature and Title)	/s/ Casey P. Tushaus
		Casey P. Tushaus, Treasurer/Principal Financial Officer

Date:	March 9, 2023	/s/ Brian F. Hurley
		Brian F. Hurley
		President/Principal Executive Officer