https://www.sec.gov/Archives/edgar/data/1370177/000139834425007944/fp0093430-1_497.htm497 1 fp0093430-1_497.htm
RIVERNORTH FUNDS
RiverNorth Core Opportunity Fund
Retail Share Class
(Ticker Symbol RNCOX)
Institutional Share Class
(Ticker Symbol RNCIX)
April 28, 2025
SUPPLEMENT TO PROSPECTUS DATED
January 28, 2025
The RiverNorth Core Opportunity Fund to convert to an Exchange Traded Fund.
At a meeting of the Board of Trustees (the "Board") of RiverNorth Funds held on April 23, 2025, the Board unanimously voted to approve, subject to shareholder approval, an Agreement and Plan of Reorganization and Termination (the “Plan”) to reorganize the RiverNorth Core Opportunity Fund (the “Fund”) into the RiverNorth Active Income ETF, an exchange traded fund (“Acquiring Fund”) which will be a series of the Elevation Series Trust (the “Reorganization”). The Acquiring Fund is being formed for the purpose of effecting the Reorganization, and the Acquiring Fund will not have engaged in any business prior to the Reorganization. RiverNorth Capital Management, LLC, the investment adviser to the Fund, would serve as the Acquiring Fund’s investment sub-adviser and TrueMark Investments, LLC would act as the Acquiring Fund’s investment adviser.
The Reorganization is subject to shareholder approval and shareholders should expect to receive proxy materials in May 2025. If approved by shareholders, the Reorganization is expected to occur early in the third quarter of 2025.
The Plan approved by the Board of Trustees also contains provisions for the merging of the Fund’s Class I share class into the Class R share class and the termination of the Fund’s Class R share Rule 12b-1 plan at future dates to be determined. These steps will align the Fund’s fee structure with the Acquiring Fund’s proposed fee structure.
Additional information regarding the proposed Reorganization will be included in the upcoming proxy materials and additional supplements to the Fund’s prospectus.
RIVERNORTH FUNDS
c/o ALPS Fund Services, Inc.
1290 Broadway, Suite 1100
Denver, Colorado 80203
1-888-848-7569
Please retain this supplement with your Prospectus for future reference.
Comments
https://www.sec.gov/Archives/edgar/data/1936157/000199937125004898/cefz-485apos_042825.htm
I don't see many of these ETFs really garnering much of a market.
The following disclaimer on their website has me puzzled:
“RiverNorth’s mutual funds are distributed by ALPS Distributors, Inc. Member FINRA. ALPS Distributors, Inc. is unaffiliated with RiverNorth Capital Management, LLC, DoubleLine Capital LP or Oaktree Capital Management, L.P.”
If “unaffiliated with” … then why mention those other firms?
unless perhaps the RiverNorth I invested with is different from the one David highlighted?Website@Shostakovich asks a good question. Darned if I fully understand the eagerness of OEFs to convert to ETFs. But as others have said, ETFs are the popular trend - vastly outdrawing money over OEFs. I have an additional thought - Is it possible the ETF structure may reduce the chances of lawsuits by unhappy investors following a steep market slide? Oppenheimer in particular took a beating being sued after the ‘07-‘09 mess (re their their OEFs’ unanticipated steep losses) and eventually was acquired by Invesco. With an ETF you’re essentially buying directly into the market, whereas there seems to be more of an intermediary role for the sponsor under the OEF structure.
Here is link to David's profile from 2015, looks like:
https://www.mutualfundobserver.com/2015/11/rivernorth-core-opportunity-rncoxrncix-november-2015/
And here is link to Dashboard of Profiled Funds.
And thank you for the linked profile page. Very impressive.
There are CIT cousins with lower ERs within 401k/403b.
There are etf conversions. ETFs have much better accessibility. Fido and Schwab have good NTF platforms for OEFs, but many others stink.
Also, after Vanguard's patent of the etf class expired, many others are offering etf classes.
At most brokerages, ETFs trade commission-fee, but watch bid-ask - use limit-orders if wide bid-ask. Also avoid trading ETFs in the first or last 30 minutes of the trading session.
Editoring comments aside -- despite my errors, the question I posed above moving OEFs to ETFs remains. Note Tweedy, First Eagle, Oakmark (others) doing the same.
I found Jared Dillian’s “No Worries - How to Lead a Stress Free Financial Life” to be an interesting read. The author strongly recommends OEFs over etfs. The main reason seems to be the “detachment” they offer from minute by minute changes in value which may induce knee-jerk and unprofitable trading.
I somewhat agree. I’ve gone with OEFs for my 4 core holdings (65-70% of portfolio) but also own one sleeve of CEFs / ETFs for the (opportunistic) trading they allow. My suspicion is that OEF investor bases will prove a bit more stable in any big prolonged sell-offs. All speculation of course … .
https://indoustribune.com/business/mutual-funds-or-etfs/
Temptation? That's your problem, not mine
I prefer OEFs because there are no hidden costs (spreads, SEC fees), and because at the end of the day (literally) if you've invested $100 then your new shares are worth $100, no more, no less. And when you buy an ETF, there's always the question of whether you should buy it now, no wait, now, no, NOW. Limit orders can help with that but then what's the "correct" price to choose?
Admittedly there's a similar question with an OEF - which day should you buy it? Somehow that seems more manageable because its more coarse and not instantaneous.
I never place ETf buy orders during the first or last 30 minutes markets are open and always use limit orders.
Prior to purchasing ETf shares, I'll check day range history and indicative intraday value (if available).
After all that, it's often more of an art than a science to choose the "correct" price.
My pricing choices are sometimes "correct" but other times they are not.
I too avoid trading near (either) end of day. And I also look at trading ranges, current pricing, etc. Though it often seems like more hassle than it's worth. Especially compared to buying OEFs.
Tax considerations are moot in tax-sheltered accounts (and I'm gradually sheltering more assets via Roth conversions). They are something to keep in mind in taxable accounts. Echoing @fundly 's concerns is this M* piece.
https://www.morningstar.com/sustainable-investing/when-bad-taxes-happen-good-funds