RiverNorth Capital Management, LLC (“RiverNorth”), an investment
management firm specializing in opportunistic strategies, announced
the launch of the RiverNorth Flexible Municipal Income Fund, Inc.
(the “Fund”), a new municipal focused closed-end fund. RiverNorth
will act as the investment adviser to the Fund and MacKay Shields
LLC ("MacKay Shields") will act as subadviser. This is the third
fund co-managed by the investment firms. The Fund will use the load
waived pricing structure pioneered by RiverNorth. As a result,
investors will not pay any upfront expenses, which allows the Fund
to be priced at $20.00 per share with an initial net asset value
(NAV) of $20.00 per share. Trading on the New York Stock Exchange
began on March 27, 2020 under the symbol "RFM.”
“In this time of an unprecedented health crisis combined with
the resulting economic and capital market uncertainty, we are
thrilled with investor response to the Fund and very proud to
announce its successful launch”, said Patrick Galley, RiverNorth’s
Chief Executive Officer and Chief Investment Officer. “Raising a
fresh portfolio of cash in a closed-end fund structure to be
deployed in a period of dislocated markets is very timely in our
opinion. Elements of the Fund’s design that may be of particular
interest to investors include its flexible ability to
opportunistically allocate up to 65% of managed assets to the
tactical municipal closed-end fund strategy. We believe this
increased flexibility may serve to enhance potential additional
excess return from closed-end fund discount trading opportunities,
especially in light of the recent market volatility.”
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.
“We are delighted to be partnering for a third time with the
municipal closed-end fund team at RiverNorth,” said Robert DiMella,
Executive Managing Director and Portfolio Manager of MacKay
Shields. “The municipal bond market has been prone to periods of
volatility. As active relative-value municipal bond managers with
an intense focus on mispriced securities, we view this volatility
and resulting inefficiencies as potential investment
opportunities.”
The Fund raised $110 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 approximately $127 million.
The lead managers of the underwriting syndicate were UBS
Investment Bank, 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 $4.6 billion in assets
under management as of February 29, 2020, 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 Shields”) 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 Shields is a fixed-income and equity
investment management firm with approximately $134.8 billion in
assets under management as of February 29, 2020. MacKay Shields
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.
Although the fund is load waived, normal fund expenses still
apply.
Please consult your personal tax advisor regarding the tax
implications of owning this fund.
*MacKay Municipal Managers™ is a trademark owned by MacKay
Shields LLC used to describe a portfolio management team within
Mackay Shields LLC.
©2020, MacKay Shields LLC. All Rights Reserved.
RiverNorth is not affiliated with MacKay Shields, UBS Investment
Bank, Wells Fargo Securities, RBC Capital Markets and Stifel.
RiverNorth® is a registered trademark of RiverNorth Capital
Management, LLC.
©2000-2020 RiverNorth Capital Management, LLC. All rights
reserved.
ALPS Distributors, Inc. FINRA Member Firm.
RMI000147 Exp. 3.31.22
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version on businesswire.com: https://www.businesswire.com/news/home/20200331005782/en/
Investor Contact Chris Lakumb, CFA, CAIA 312.445.2336
clakumb@rivernorth.com
Grafico Azioni RiverNorth Flexible Muni... (NYSE:RFM)
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Da Dic 2024 a Gen 2025
Grafico Azioni RiverNorth Flexible Muni... (NYSE:RFM)
Storico
Da Gen 2024 a Gen 2025
