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RiverNorth, DoubleLine Launch Closed End Fund

FYI: RiverNorth Capital Management announced the launch of its closed end RiverNorth/DoubleLine Strategic Opportunity Fund (OPP) Wednesday, for which it serves as advisor and DoubleLine Capital serves as sub-advisor.

The fund started trading on the NYSE on September 28. RiverNorth said that the fund will opportunistically invest in fixed income securities and tactically invests in closed-end funds.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2016/10/05/rivernorth-doubleline-launch-closed-end-fund/tab/print/

Comments

  • edited October 2016
    Holds no interest for me. Leveraged, very expensive, textbook asset gathering.....
    http://www.rivernorth.com/closed-end-funds/opp
  • The new CEF sounds a LOT like its old OEF product: RNDLX.
  • 2% load and 2.94% expense ratio. No thanks, why pay the middleman if I want to invest in CEFs?
  • @Sven, I agree. Right now in the FI space, I like Ivascyn (PIMIX, PDIIX, PDI), Gundlach (DBLFX, ADLIX) and WHAIX (available at TDAmeritrade for no minimum in retirement accounts with TF). Nothing else.

    Kevin
  • @kevindow, Right now in this low interest rate environment, the only thing that is predictable is the management fee/expense ratio. I like VCIT and VCLT, and OSTIX. The rest I let Wellington and PRCWX's to make the bond allocation.
  • edited October 2016
    @Sven Speaking of OSTIX, Carl Kaufman will be doing a 3rd qtr. teleconference tomorrow. Tune in here, if you have the time to spare:
    https://secure.confertel.net/tsRegister.asp?course=6191432
  • edited October 2016
    Sven, I'm not sure where you heard there's a 2% "load" for, well, any cef; they trade like stocks, with a simple commission (e.g., $8 a trade with Fidelity). A comment on M* referred to a haircut of about that size at the initial public offering (no idea here why such a haircut would exist), so possibly that's the source of the confusion, but there are no loads like those for A, C, etc. shares of open-end funds associated with any closed-end fund.

    That ~ 3% E.R. is apparently the result of the double-fee structure of this fund-o'-funds.
  • heezsafe said:

    Carl Kaufman will be doing a 3rd qtr. teleconference tomorrow.

    If either of you have a chance to listen to it and report, I and I'm sure others would appreciate it. OSTIX has popped back up on the radar lately for me, too, but I can't do that time tomorrow. I think I need to diversify my credit FI exposure; it's almost all with Pimco at this point.
  • @AndyJ, I got the load info from the RiverNorth prospectus, p.37.
  • @heezsafe, thanks for heads up. Unfortunate I will be at work. Wonder if the telecom would be posted later on Osterweis website?
  • @Sven The e-mail notice I received is for the OSTIX teleconference on the 11th as well as for the OSTFX and OSTVX webinar on the 26th--- "Replays will be available approximately a week after the discussions," it states.
    @AndyJ I may be able to tune in for awhile. The fund is back up to 22.6% cash (fact sheet has been updated), so they are expecting something to happen fairly soon; however, those guys keep their cards pretty close to the vest, so-to-speak, so I'm not anticipating any great revelations about strategy from Carl K. in tomorrow's tele.
  • edited October 2016
    Sven said:

    @AndyJ, I got the load info from the RiverNorth prospectus, p.37.

    From the language - "as a percentage of offering price" - that's for the ipo. After the ipo, a buyer buys shares from other investors, through the middleman of an exchange, just like a stock with the normal commission, with the price set by investor demand, not by the offering price. There's no mechanism for collecting a load and sending it to the fund sponsors after the ipo. Here's the M* thread where this is discussed. It's a bit confusing the way expenses are reported in the prospectus.
  • @andyJ, thanks for the clarification
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