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RiverNorth/Manning & Napier Dividend Income Fund reorganization

TheShadowTheShadow
edited November 2013 in Fund Discussions
http://www.sec.gov/Archives/edgar/data/1370177/000119312513456268/d636189d497.htm

Excerpt:
"On November 20, 2013, the Board of Trustees of RiverNorth Funds voted to approve the termination of the Subadvisory Agreement between RiverNorth Capital Management, LLC and Manning & Napier Advisors, LLC related to the RiverNorth/Manning & Napier Dividend Income Fund (the “Fund”). Effective January 1, 2014, RiverNorth Capital Management, LLC will take over full management of the Fund and the Fund’s name will be changed to the RiverNorth Equity Opportunity Fund..."

Comments

  • ShostakovichShostakovich
    M&N went public not too long ago, correct?

    Are they going the Royce route -- launching more funds to generate greater ROI?
  • David_Snowball
    Maybe but, if so, this fund wouldn't be evidence of it. RiverNorth hired M&N to manage a portion of the RiverNorth fund in the same style that M&N uses on their Dividend Focus Fund (MNDFX). MNDFX is just over five years old. Two of the founding managers of the fund are still with it and I spent an hour with one of them (Chris Petrosino) at Morningstar in June. Very bright, low-key guy who pointed out that M&N launched their fund in the midst of a market collapse but the research convinced them that dividends were a source of re-investable income, a measure of corporate strength and a check on management's capital allocation dreams. MNDFX has been a solid corporate citizen - low profile, low expense, low turnover, low risk with more-or-less average returns.

    As I'll mention in this month's essay, the RiverNorth folks want to hold off talking until the hand over becomes final. Looking at a chart of the RiverNorth fund and the Manning & Napier fund suggests that the RN sleeve has been consistently more profitable than the MN one, which I suspect explains the change.

    For what that's worth,

    David
  • ShostakovichShostakovich
    Thanks David. Cheers.
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