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RiverNorth/Manning & Napier Div Inc R RNMNX availability and thoughts
I think that this fund could be a heavy hitter, expenses are still a little high, but that is mainly due to RiverNorth's slice. Has anyone already invested here?.......Does anyone know what online brokers offer it at this time? I do most of my investing with Fidelity.
MNDFX does already have a track record as does RNCOX.....but a combination of the two strategies seems interesting in a lower ER than RNCOX. It is a pretty distinct strategy as far as open ended mutual funds go (not many focus on CEFs)
My immediate feeling is that this does not seem as compelling as the earlier RNDLX/RNSIX which is based on bonds and bond CEFs rather than dividend stocks. I don't know what RiverNorth's strategy will add to MNDFX as opposed to, say, one of Manning & Napier's balanced funds. Appreciate any thoughts as to why I might be wrong or right.
One possible value add is that it gives RiverNorth another strategy to offload to if the opportunities in the CEF space are constrained. And vice versa for the Manning & Napier piece. They are allowed to go from 0 to 100% allocation into either strategy.
As a long time holder of RNSIX, I think this new fund brings a lot to the table. RiverNorth has demonstrated that their CEF strategies work for bond as well as stock funds. Since RNCOX is closed this is the only way to access the equity side of their CEF strategy. The only thing I can't figure out is why do they keep partnering up with other fund companies to open new funds when they could just reopen RNCOX.
Reply to @Dan: I also hold RNDLX (retail shares) but I am not entirely convinced about what RiverNorth has brought to the table.
Here is a chart comparing RNSIX to ADLIX. I use ADLIX for comparison because I recall DoubleLine's Gundlach explaining that RNSIX and ADLIX use DoubleLine's more aggressive strategies. (ADLIX's retail class is ADBLX.)
Other than the period from July-Sept 2011 (not that you should ignore this), the funds seem to have performed almost exactly the same. Maybe you get a slightly smoother ride with RNSIX... maybe.
If I look at RNSIX at inception vs. DBLFX (DoubleLine's "core" strategy) I'm also not sure I see a significant difference.
Of course RNSIX has only been around for less than 2 years and there might not have been the right opportunities yet for the CEF strategy to prove itself. But given the relatively high expenses (1.10% for ADLIX vs. only 0.69% for RNSIX) I remain cautious for the time being.
I think the chart is inaccurate. RNSIX has returned a lot more than 7% since inception. Perhaps it does not account for distributions. Personally, I like RNSIX a great deal.
Comments
Here is a chart comparing RNSIX to ADLIX. I use ADLIX for comparison because I recall DoubleLine's Gundlach explaining that RNSIX and ADLIX use DoubleLine's more aggressive strategies. (ADLIX's retail class is ADBLX.)
Other than the period from July-Sept 2011 (not that you should ignore this), the funds seem to have performed almost exactly the same. Maybe you get a slightly smoother ride with RNSIX... maybe.
If I look at RNSIX at inception vs. DBLFX (DoubleLine's "core" strategy) I'm also not sure I see a significant difference.
Of course RNSIX has only been around for less than 2 years and there might not have been the right opportunities yet for the CEF strategy to prove itself. But given the relatively high expenses (1.10% for ADLIX vs. only 0.69% for RNSIX) I remain cautious for the time being.
I think the chart is inaccurate. RNSIX has returned a lot more than 7% since inception. Perhaps it does not account for distributions. Personally, I like RNSIX a great deal.