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RiverNorth/DoubleLine Strategic Income fund, soft close coming.....LIP
I still have a foothold position. Will probably sell it when it comes time to be able to do so. I am rather interested in the Rivernorth CEF if that ever comes out.
It's a very, very small position left and I don't have much interest in continuing to hold it - I'd rather what's left be devoted to other things. I continue to have next-to-no fixed income-specific funds, and as I've noted in other threads, that's an active choice I've made and not something I'd recommend for older investors.
I put some of my bond allocation into this fund recently. I was looking at Gundlach's DoubleLine funds but also liked the "alternative strategy" idea of the RiverNorth Core Opportunity RNCOX, so this seemed like a nice way to get both in one package.
By the way, RNCOX has been closed since last June but it still shows as open on Vanguard. Has anybody tried opening a new position through there?
If I wanted to own the RiverNorth DoubleLine Strategic Income Fund, I would only purchase RNSIX (net expense ratio 1.20%), which is available below the prospectus minimum ($100K) for $25K in Firstrade retirement and taxable accounts. RNDLX has an excessive expense ratio of 1.45% for a multisector bond fund. Net expense ratio details here:
I refuse to pay over a 1% expense ratio for any bond fund, so I do not own and I am not interested in owning either class of this fund.
In this space, I prefer ADBLX (0.95% ER, minimums $2500 taxable/$500 retirement) or preferably, ADLIX (0.70% ER, $100K minimums both taxable and retirement). We own DBLFX, but will likely convert our position into ADLIX in the near future.
Reply to @kevindow: What's the difference between ADLIX and DBLFX? They seem to the be same fund but DBLFX has a lower expense ratio.
I considered the high expenses of RNDLX but I am willing to try it out for a while. RNCOX has the same expense ratio of 1.45%. RNDLX has exposure to that strategy, plus managing the allocation with DoubleLine. Maybe 1.45% for RNCOX is also ridiculous, but that would be the argument for it.
RNDLX also has 25% in a DoubleLine strategy called "Opportunistic Income" which is supposed to be distinct from its "Core Fixed Income" strategy. Maybe this is also not worth 1.45%, but again, it's something distinct.
Reply to @kevindow: Very helpful, thanks. I checked the chart and ADLIX does seem to have steadily outperformed DBLFX since it opened. I will keep it on my radar. The 100k minimum is too steep for me so I can only get the retail shares.
Reply to @kevindow: Of particular interest: "In Gundlach's opinion (repeated over and over during the call), interest rates will NOT be rising significantly higher and may not for 5-6 years... and maybe 10 years. The 10-year Treasury has not bottomed, but will not move a lot lower from here. Any short term 10-year move upwards will not go much above 4 (within the range of the recent past)."
Effective after March 30, 2012, the RiverNorth/DoubleLine Strategic Income Fund (the "Fund") is closed to new investors. Unless you fit into one of the investor categories described below, you may not invest in the Fund.
You may purchase Fund shares through your existing Fund account and reinvest dividends and capital gains in the Fund if you are:
· A current Fund shareholder as of March 30, 2012;
· An investor who has previously entered into a letter of intent with the Fund or RiverNorth Capital Management, LLC prior to March 30, 2012;
· A participant in a qualified defined contribution retirement plan that offers the Fund as an investment option as of March 30, 2012;
· A wrap fee program or financial advisory firm charging asset-based fees with existing accounts as of March 30, 2012 purchasing shares on behalf of new and existing clients; or
· A client who maintains a managed account with RiverNorth Capital Management, LLC
Except as otherwise noted, these restrictions apply to investments made directly with the RiverNorth/DoubleLine Strategic Income Fund through its Transfer Agent and investments made through financial institutions and/or intermediaries. Once an account is closed, additional investments will not be accepted unless you are one of the investors listed above. Investors may be required to demonstrate eligibility to purchase shares of the Fund before an investment is accepted. Management reserves the right to (i) make additional exceptions that, in its judgment, do not adversely affect its ability to manage the Fund, (ii) reject any investment or refuse any exception, including those detailed above, that it believes will adversely affect its ability to manage the Fund, and (iii) close and re-open the Fund to new or existing shareholders at any time.
In addition, it should be noted on page 8 of the current prospectus, that because of different class level expenses, the returns for the Class R shares are lower than the returns of the Class I shares which is shown in the prospectus.
Dated: February 23, 2012
RIVERNORTH FUNDS
c/o ALPS Fund Services, Inc.
1290 Broadway, Suite 1100
1-888-848-7569
Please retain this supplement with your Prospectus for future reference.
Reply to @scott: For what it's worth, the RiverNorth folks remain noncommittal on the CEF. It's "still in the works" but they won't go any farther than that.
I bought RNSIX in my Fido IRA account for $25,000 and a $75 TF. I then transfered one share to my Fido Royh account and made further purchases for $5 each using the auto feature. I always liked RNCOX but the ER was just a little high, though it continues to outperform. I thing of RNSIX as 1/3 RNCOX, 1/3 DBLFX, and 1/3 ADLIX.
Something to consider: DBLTX has 8% yield, and it is less sensitive to the possible growth of interest rates. DBLFX, RNSIX, and ADLIX have smaller yield, greater duration, and grow in part because of the capital gains. I am not a bond expert, but I suspect that when Fed will start rising rates (maybe not soon), these funds will be more vulnerable. Of course, at that time they may change their profile...
Reply to @andrei: I wouldn't worry too much about this. The point of an actively managed, flexible bond fund is that the manager is supposed to recognize these trends and adjust the portfolio accordingly. I don't think any of the DoubleLine funds have a mandate to maintain a certain duration/yield. I believe Gundlach has recently said that he is not worried about rising rates at the moment. If you don't trust him to make those kinds of calls, then I don't think it matters which DoubleLind fund you're in.
Comments
http://www.rivernorthfunds.com/pdf/20120222-Press_Release-RNSIX-RNDLX_Soft_Close.pdf
Scott, I am interested in your reasons for selling it (when it comes time...)?
Thanks.
By the way, RNCOX has been closed since last June but it still shows as open on Vanguard. Has anybody tried opening a new position through there?
http://www.rivernorthfunds.com/rndlx-rnsix-fund_info.php
I refuse to pay over a 1% expense ratio for any bond fund, so I do not own and I am not interested in owning either class of this fund.
In this space, I prefer ADBLX (0.95% ER, minimums $2500 taxable/$500 retirement) or preferably, ADLIX (0.70% ER, $100K minimums both taxable and retirement). We own DBLFX, but will likely convert our position into ADLIX in the near future.
Kevin
I considered the high expenses of RNDLX but I am willing to try it out for a while. RNCOX has the same expense ratio of 1.45%. RNDLX has exposure to that strategy, plus managing the allocation with DoubleLine. Maybe 1.45% for RNCOX is also ridiculous, but that would be the argument for it.
RNDLX also has 25% in a DoubleLine strategy called "Opportunistic Income" which is supposed to be distinct from its "Core Fixed Income" strategy. Maybe this is also not worth 1.45%, but again, it's something distinct.
A nice review of the JG-managed funds from another site:
http://socialize.morningstar.com/NewSocialize/forums/p/287732/3092742.aspx#3092742
Kevin
http://www.sec.gov/Archives/edgar/data/1370177/000137017712000004/rnf497.htm
RIVERNORTH FUNDS
RiverNorth/DoubleLine Strategic Income Fund
(Class I Ticker Symbol: RNSIX)
(Class R Ticker Symbol: RNDLX)
SUPPLEMENT TO PROSPECTUSES DATED FEBRUARY 1, 2012
Effective after March 30, 2012, the RiverNorth/DoubleLine Strategic Income Fund (the "Fund") is closed to new investors. Unless you fit into one of the investor categories described below, you may not invest in the Fund.
You may purchase Fund shares through your existing Fund account and reinvest dividends and capital gains in the Fund if you are:
·
A current Fund shareholder as of March 30, 2012;
·
An investor who has previously entered into a letter of intent with the Fund or RiverNorth Capital Management, LLC prior to March 30, 2012;
·
A participant in a qualified defined contribution retirement plan that offers the Fund as an investment option as of March 30, 2012;
·
A wrap fee program or financial advisory firm charging asset-based fees with existing accounts as of March 30, 2012 purchasing shares on behalf of new and existing clients; or
·
A client who maintains a managed account with RiverNorth Capital Management, LLC
Except as otherwise noted, these restrictions apply to investments made directly with the RiverNorth/DoubleLine Strategic Income Fund through its Transfer Agent and investments made through financial institutions and/or intermediaries. Once an account is closed, additional investments will not be accepted unless you are one of the investors listed above. Investors may be required to demonstrate eligibility to purchase shares of the Fund before an investment is accepted. Management reserves the right to (i) make additional exceptions that, in its judgment, do not adversely affect its ability to manage the Fund, (ii) reject any investment or refuse any exception, including those detailed above, that it believes will adversely affect its ability to manage the Fund, and (iii) close and re-open the Fund to new or existing shareholders at any time.
In addition, it should be noted on page 8 of the current prospectus, that because of different class level expenses, the returns for the Class R shares are lower than the returns of the Class I shares which is shown in the prospectus.
Dated: February 23, 2012
RIVERNORTH FUNDS
c/o ALPS Fund Services, Inc.
1290 Broadway, Suite 1100
1-888-848-7569
Please retain this supplement with your Prospectus for future reference.
It covers a lot of ground.