RiverNorth Portfolio Manager, Steve O’Neill, discussed closed-end fund discounts with Chuck Jaffe on The
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Definitions & Disclosures
A Closed-End Fund is a portfolio of pooled assets that raises a fixed amount of capital through an initial public
offering (IPO) and then lists shares for trade on a stock exchange.
The price at which a closed-end fund trades often varies from its net asset value (NAV). Some funds have
market prices below their net asset values - referred to as a discount. Conversely, some funds have market
prices above their net asset values - referred to as a premium.
Tax loss selling or harvesting is the selling of securities at a loss to offset a capital gains tax liability.
An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a
new stock issuance.
Beta reflects the sensitivity of a fund's return to fluctuations in the market index. A beta of 0.5 reflects half of the
market's volatility as represented by the Fund's primary benchmark, while a beta of 2.0 reflects twice the
Alpha is a measure of performance on a risk-adjusted basis. The excess return of a fund relative to the return of
the benchmark index is a fund's alpha.
Municipal bond funds invest in municipal bonds, debt instruments issued by state and local governments to help fund capital projects.
A bond rating is a letter-based credit scoring scheme used to judge the quality and creditworthiness of a bond.
Investment grade bonds assigned “AAA” to “BBB-“ ratings from Standard & Poor's, and Aaa to Baa3 ratings from
Moody's. Junk bonds have lower ratings.
Par value, also known as nominal value, is the face value of a bond or the stock value stated in the corporate
Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest
rates. Duration is non-linear and accelerates as time to maturity lessens.
Leverage results from using borrowed capital as a funding source when investing to expand the firm's asset
base and generate returns on risk capital.
Yield refers to the earnings generated and realized on an investment over a particular period of time.
Diversification does not ensure a profit or a guarantee against loss.
Past performance is no guarantee of future results.
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Investors should consider the investment objective, risks, and charges and expenses of RiverNorth's mutual funds carefully before investing. To
obtain a prospectus containing this and other important information, please call 888.848.7569 or visit rivernorth.com. Please read the prospectus
carefully before investing.
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.
Investing involves risk and the potential loss of capital.
are registered trademarks of RiverNorth Capital Management, LLC.