RiverNorth Portfolio Manager Steve O'Neill discussed municipal closed-end funds with Chuck Jaffe on The NAVigator.
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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.
A percentile is a value on a scale of 100 that shows the percentage of a distribution that is equal to or below it.
Tax loss selling or harvesting is the selling of securities at a loss to offset a capital gains tax liability.
Municipal Closed-End Funds are defined as closed-end funds that invest in a diversified portfolio of investment-grade municipal
bonds in a variety of sectors and States.
Basis points refer to a common unit of measure for interest rates and other percentages in finance. One basis point is equal to
1/100th of 1%, or 0.01%, or 0.0001, and is used to denote the percentage change in a financial instrument.
Yield refers to the earnings generated and realized on an investment over a particular period of time.
The Federal Funds Rate refers to the interest rate that banks charge other institutions for lending excess cash to them from their
reserve balances on an overnight basis.
An inverted yield curve shows that long-term interest rates are less than short-term interest rates.
Separately Managed Account (SMA) is an investment portfolio owned by an investor and managed by a professional investment
firm—typically registered investment advisors(RIA).
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
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.
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.
A bond default occurs when the issuer of the bond fails to make interest or principal payments within the specified period.
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.
The Global Financial Crisis (GFC) of 2008-2009 refers to the massive financial crisis the world faced from 2008 to 2009.
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
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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.