New Actively Managed Closed-End Fund Combines
RiverNorth’s Closed-End Fund Trading Expertise with MacKay Shields’
Municipal Bond Investing Capabilities
RiverNorth Capital Management, LLC (“RiverNorth”), an investment
management firm specializing in opportunistic strategies, announced
the launch of the RiverNorth Opportunistic Municipal Income Fund,
Inc. (the “Fund”), a new municipal bond focused closed-end fund.
RiverNorth will act as the investment adviser to the Fund, and
MacKay Shields, LLC ("MacKay Shields") will act as subadviser. The
Fund was priced at $20.00 per share, and trading on the New York
Stock Exchange began on October 26, 2018 under the symbol
"RMI.”
The Fund’s primary investment objective is current income exempt
from regular U.S. federal income taxes (but which may be includable
in taxable income for purposes of the Federal alternative minimum
tax). The Fund’s secondary investment objective is total return. As
the investment adviser, RiverNorth will strategically allocate the
Fund’s assets between two principal investment strategies: the
Tactical Municipal Closed-End Fund Strategy, managed by RiverNorth,
and the Municipal Bond Income Strategy, managed by MacKay Shields.
RiverNorth believes that fundamental and technical factors look
positive for the municipal bond market, and significant opportunity
exists for discount narrowing in the municipal closed-end fund
market, as current discounts are in the 99th percentile of widest
discounts.**
“We are delighted to partner with the distinguished municipal
bond team at MacKay Shields,” said Patrick Galley, RiverNorth’s
Chief Investment Officer. “The Fund seeks to capitalize on market
inefficiencies in the municipal closed-end fund and municipal bond
markets in order to provide investors with a tax-efficient
municipal bond strategy with the potential to deliver enhanced
income and additional returns. Through a relative value approach,
the Fund will seek to trade and tactically allocate to municipal
closed-end funds when discounts are attractive and conversely,
tactically decrease our exposure and allocate more capital to the
municipal bond income strategy when discounts narrow.”
“MacKay Shields’ research driven investment approach and intense
focus on mis-priced municipal securities provides an excellent
complement to RiverNorth’s proficiency in deriving value from
closed-end fund discount trading opportunities,” said Robert
DiMella, Executive Managing Director and Portfolio Manager of
MacKay Shields. “Together, we believe the firms’ complementary
strategies will allow the Fund to opportunistically generate
returns across market cycles.”
The Fund raised gross proceeds of approximately $119 million in
its initial public offering of shares of common stock. Should the
underwriters exercise the overallotment option in full, which may
or may not occur, the Fund will raise gross proceeds of
approximately $136.85 million.
The lead managers of the underwriting syndicate were UBS
Investment Bank, Morgan Stanley, Wells Fargo Securities, RBC
Capital Markets and Stifel.
For more information, please visit us at www.rivernorth.com.
About RiverNorth
RiverNorth Capital Management, LLC is an investment management
firm founded in 2000. With approximately $3.4 billion in assets
under management as of September 30, 2018, RiverNorth specializes
in opportunistic investment strategies in niche markets where the
potential to exploit inefficiencies is greatest. RiverNorth is the
investment manager to multiple registered and private funds.
About MacKay Shields LLC
MacKay Shields LLC (“MacKay”) is an indirect wholly-owned
subsidiary of New York Life Insurance Company and a wholly-owned
subsidiary of New York Life Investment Management Holdings LLC.
MacKay is a fixed-income and equity investment management firm with
approximately $114 billion in assets under management as of
September 30, 2018. MacKay manages fixed-income and equity
strategies for high-net worth individuals, institutional clients,
and mutual funds.
The Fund has no operating history. An investment in the Fund is
not appropriate for all investors and is not intended to be a
complete investment program. The Fund is designed as a long-term
investment and not as a trading vehicle.
This document is not an offer to sell any securities and is
not soliciting an offer to buy any securities in any jurisdiction
where the offer or sale is not permitted. This document is not an
offering, which can only be made by a prospectus. The information
in this press release is not complete and is subject to
change.
Investors should read the Fund’s prospectus and consider the
Fund's investment objective, risks, charges and expenses carefully
before investing. The prospectus should be read carefully before
investing. For more information, please read the prospectus, call
your financial professional or call 844.569.4750.
The Fund is a closed-end fund, and closed-end funds do not
continuously issue shares for sale as open-end mutual funds do.
Since the initial public offering has closed, the Fund now trades
in the secondary market. Investors wishing to buy or sell shares
need to place orders through an intermediary or broker. The share
price of a closed-end fund is based on the market's value.
Shares of closed-end investment companies frequently trade at a
discount to their net asset value and initial offering price. The
risk of loss due to this discount may be greater for initial
investors expecting to sell their shares in a relatively short
period after completion of the initial public offering.
Risk is inherent in all investing. Investing in any investment
company security involves risk, including the risk that you may
receive little or no return on your investment or even that you may
lose part or all of your investment. Therefore, before investing in
the common shares of the Fund, you should consider the risks as
well as the other information in the prospectus.
*MacKay Municipal Managers™ is a portfolio management team
within MacKay Shields LLC.**Source: Morningstar, RiverNorth.
Represents average municipal closed-end fund discount as of
10/25/18; discount frequency calculated from 12/31/96-10/25/18.
RiverNorth is not affiliated with MacKay Shields, UBS Investment
Bank, Morgan Stanley, Wells Fargo Securities, RBC Capital Markets
and Stifel.
RiverNorth® is a registered trademark of RiverNorth Capital
Management, LLC.
©2000-2018 RiverNorth Capital Management, LLC. All rights
reserved.
RMI000105 Exp. 10.31.20
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version on businesswire.com: https://www.businesswire.com/news/home/20181030006050/en/
RiverNorth Capital Management, LLCMedia ContactsSusan
Mellon312.445.2256smellon@rivernorth.comorInvestor
ContactAllen Webb, CFA312.445.2266awebb@rivernorth.com
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