RiverNorth Opportunistic Municipal Income Fund, Inc.

Ticker: RMI
Disclosures & Definitions
Distributions
Fund Info
Investment Objective & Philosophy
Investment Rationale
Investment Strategy
Literature
Performance
Portfolio Detail
Portfolio Statistics
Portfolio Managers

Fund Data as of 6.24.2019

NYSE Ticker NAV Market Price Premium/Discount Total Net Assets
RMI $22.65 $21.26 -6.14% $134.47M

Literature

Investment Objective & Philosophy

The RiverNorth Opportunistic Municipal Income Fund, Inc. (the "Fund") seeks to provide current income exempt from regular U.S. federal income taxes1 with a secondary objective of total return.

While RiverNorth Capital Management, LLC ("RiverNorth") believes markets are generally efficient, closed-end funds offer a unique structure whereby investors can purchase a diversified fund and potentially generate additional return through the change in the relationship between the closed-end fund's market price and Net Asset Value (NAV)2. RiverNorth also believes combining a municipal closed-end fund strategy with a proven municipal bond manager such as MacKay Municipal Managers™ 3 provides an attractive investment vehicle for investors.

Diversification does not ensure a profit or guarantee against loss.

Investment Strategy

RiverNorth allocates the Fund's managed assets between two principal strategies: Tactical Municipal Closed-End Fund Strategy (managed by RiverNorth) and Municipal Bond Income Strategy (managed by MacKay Shields).

* Potential range of each strategy’s managed asset allocation.

** Investments may include securities that have a rating that is below investment grade, including “high yield” securities, which are bonds that have adequate capacity to meet financial commitments, but are more subject to adverse economic conditions or changing circumstances, as defined by Nationally Recognized Statistical Rating Organizations ("NRSRO"), such as Fitch.

High yield bonds are subject to interest rate risk. If rates increase, the value generally declines.

RiverNorth believes that complementary investment strategies may allow the Fund to opportunistically generate returns during varying market conditions.

Target portfolio asset allocations are shown for illustrative purposes only and actual may be anywhere across a range.

Investment Rationale

The Fund is a municipal bond focused, closed-end fund seeking to provide:

The Fund also:

* Leverage is a speculative technique that creates risks which may increase costs, cause greater volatility, or otherwise adversely affect performance.

Fund Information

* Managed assets include assets attributable to leverage.

Portfolio Detail As of 5.31.2019

Portfolio asset allocations are estimates made by the adviser and are subject to change.

Strategy Weights
Credit Quality Distribution
RiverNorth Municipal Closed-End Fund Strategy 43%
MacKay Municipal Bond Income Strategy 57%
RiverNorth Municipal Closed-End Fund Strategy 43%
MacKay Municipal Bond Income Strategy 57%
Credit Quality Distribution
Credit Quality Distribution
Investment Grade 95%
High Yield 3%
Not Rated 3%
Investment Grade 95%
High Yield 3%
Not Rated 3%

Totals may not add up to 100% due to rounding.

Portfolio Statistics as of 5.31.2019

RMI
Estimated Unhedged Duration8 7.99
Estimated Hedged Duration 6.11

Performance (net of fees)

Total Returns for the Period Ending 12.31.2018

  December Since
Inception*†
RiverNorth Opportunistic Municipal Income Fund, Inc.
Net Asset Value
1.35% 3.28%
RiverNorth Opportunistic Municipal Income Fund, Inc.
Market Price
-0.43% 0.56%
Bloomberg Barclays Municipal Bond Index7 1.20% 2.19%

Total Returns for the Period Ending 5.31.2019

  May 3 Month Since
Inception*†
RiverNorth Opportunistic Municipal Income Fund, Inc.
Net Asset Value
2.23% 6.72% 16.53%
RiverNorth Opportunistic Municipal Income Fund, Inc.
Market Price
3.35% 6.30% 10.44%
Bloomberg Barclays Municipal Bond Index7 1.38% 3.37% 7.00%

Performance data quoted represents past performance, which is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value and investment return of an investment will fluctuate so that your shares may be worth more or less than their original cost. You can obtain performance data current to the most recent month end by calling 844.569.4750. Total return measures net investment income and capital gain or loss from portfolio investments. All performance shown assumes reinvestment of dividends and capital gains distributions.

* Inception Date: 10.26.2018

Since Inception returns are cumulative since the fund does not yet have a full year of history.

Market price is the price that the Fund closed at on the primary listing exchange on the as-of date listed above.

NAV is the Net Asset Value of the Fund and equals the value of all the Fund's assets (less liabilities) divided by the number of shares outstanding.

The total annual expense ratio as a percentage of net assets attributable to common shares including interest expense, as of October 25, 2018, is 2.16%.

Expenses are estimates for the Fund's first fiscal year and do not include the effects of leverage.

The fund is new and has limited operating history.

Portfolio Managers

Patrick Galley, CFA - Chief Investment Officer, Portfolio Manager - RiverNorth

Patrick joined RiverNorth in 2004 and serves as Chief Investment Officer and Portfolio Manager. Patrick heads the firm's investment team and oversees all portfolio management activities at RiverNorth.

Read full bio »

Steve O'Neill, CFA - Portfolio Manager - RiverNorth

Steve joined RiverNorth in 2007 and serves as Portfolio Manager. Steve co-manages the firm's closed-end fund trading strategies and helps to oversee the firm's closed-end fund investment analysts.

Read full bio »

John Loffredo, CFA - Executive Managing Director, Portfolio Manager - MacKay Shields

John joined MacKay Shields in July 2009 when the firm acquired the assets of Mariner Municipal Managers LLC. He was the Chairman and co-founder of Mariner Municipal Managers from 2007 to 2009. He has been a municipal portfolio manager and/or municipal analyst since 1990, with a broad range of portfolio management and analytic experience in the municipal markets. John was a Managing Director and Co-Head of BlackRock’s Municipal Portfolio Management Group (from 2006 to 2007). Prior to BlackRock’s merger with Merrill Lynch Investment Managers (MLIM), he served as Chief Investment Officer of the Municipal Products Group. He was employed by Merrill Lynch from 1990 to 2006. Before Merrill Lynch, he worked for the City of Boston Treasury Department. John is a member of the firm’s Senior Leadership Team. He graduated with an MBA and Certificate of Public Management from Boston University and with a Bachelors degree in Finance, cum laude, from Utah State University where he was a Harry S. Truman Scholar. He is a CFA Charterholder.

Robert DiMella, CFA - Executive Managing Director, Portfolio Manager - MacKay Shields

Robert joined MacKay Shields in July 2009 when the firm acquired the assets of Mariner Municipal Managers LLC. He was the President and co-founder of Mariner Municipal Managers from 2007 to 2009. He has been a municipal portfolio manager since 1992, with a broad range of trading and portfolio management experience in the municipal markets. Robert was a Managing Director and Co-Head of BlackRock’s Municipal Portfolio Management Group (from 2006 to 2007). Prior to BlackRock’s merger with Merrill Lynch Investment Managers, he served as a Senior Portfolio Manager and Managing Director of the Municipal Products Group. He was employed by Merrill Lynch from 1993 to 2006. Robert is a member of the firm’s Senior Leadership Team. He earned his Master’s degree at Rutgers University Business School and an undergraduate degree at the University of Connecticut. He is a CFA Charterholder.

Mike Petty - Senior Managing Director, Portfolio Manager - MacKay Shields

Mike joined MacKay Shields in July 2009. Before joining the firm he was a Portfolio Manager for Mariner Municipal Managers. He has been a portfolio manager on Wall Street since 1992, and has worked in the municipal products market since 1985. Mike has a broad array of trading, portfolio management, and sales experience. Prior to joining Mariner Municipal Managers, he was a Senior Portfolio Manager at Dreyfus Corporation from 1997 to 2009. From 1992 to 1997, he served as a Portfolio Manager for Merrill Lynch Investment Managers. He is a member of the firm's Management Committee. Mike graduated from Hobart College with a B.S. in Mathematics and Economics.

David Dowden - Managing Director, Portfolio Manager - MacKay Shields

David joined MacKay Shields in 2009. Before joining the firm he was Chief Investment Officer at Financial Guaranty Insurance Company. David was previously with Alliance Capital Management as a Senior Portfolio Manager and at Merrill Lynch & Co. as a Municipal Strategist. David has an AB from Brown University and an MBA from Columbia University. He has been in the investment management industry since 1989.

Scott Sprauer - Managing Director, Portfolio Manager - MacKay Shields

Scott joined MacKay Shields in 2009. Before joining the firm he was Head Trader, Fixed Income, at Financial Guaranty Insurance Company. Scott was previously with Dreyfus Corporation and Merrill Lynch Investment Managers as a Municipal Bond Portfolio Manager/Trader. He has a BSBA from Villanova University. Scott has been in the investment management industry since 1991.

Robert Burke, CFA - Managing Director, Portfolio Manager - MacKay Shields

Bob joined Mackay Shields in July 2017. Before joining the firm, Bob held various leadership roles in Capital Markets over the last 30 years, spending the majority of his time in the Municipal Markets. In his last role working for Bank of America Merrill Lynch, he managed the Global Futures, Derivative Clearing, and Foreign Exchange Prime Brokerage businesses for the Bank. Prior to that, Bob ran Credit Hedge Fund Sales, the group that was responsible for marketing credit & interest rate derivatives, as well as CLOs and structured products to institutional investors. He also worked in the firm’s private equity group, raising capital for LBO and venture capital funds. Bob started his career at BofA Merrill Lynch in the municipal bond department covering insurance, hedge fund, and asset management clients. Bob holds a Masters of Business Administration from the Gabelli School at Fordham University, and a Bachelor of Arts with High Honors in Economics from Colgate University. He is a CFA Charterholder.

Distributions (tentative schedule) 9

Record Date Ex-Date Payable
Date
Income Short Term
Gains
Long Term
Gains
Total Distributions Section 19a-1
Notice
DISTRIBUTIONS PAID
12.12.18 12.11.18 12.28.18 $0.09170 $0.00000 $0.00000 $0.09170 December
1.17.19 1.16.19 1.31.19 $0.09170 $0.00000 $0.00000 $0.09170 - -
2.14.19 2.13.19 2.28.19 $0.09170 $0.00000 $0.00000 $0.09170 February
3.14.19 3.13.19 3.29.19 $0.09170 $0.00000 $0.00000 $0.09170 March
4.18.19 4.17.19 4.30.19 $0.09170 $0.00000 $0.00000 $0.09170 - -
5.16.19 5.15.19 5.31.19 $0.09170 $0.00000 $0.00000 $0.09170 May
DISTRIBUTIONS DECLARED
6.13.19 6.12.19 6.28.19 $0.09170 $0.00000 $0.00000 $0.09170 - -
DISTRIBUTION DATES
7.11.19 7.10.19 7.31.19 - - - - - - - - - -
8.15.19 8.14.19 8.30.19 - - - - - - - - - -
9.12.19 9.11.19 9.30.19 - - - - - - - - - -
10.17.19 10.16.19 10.31.19 - - - - - - - - - -
11.14.19 11.13.19 11.29.19 - - - - - - - - - -
12.12.19 12.11.19 12.31.19 - - - - - - - - - -

Disclosures & Definitions

Although the income from the Fund's municipal bond investments is generally exempt from federal income tax, you may owe taxes on any capital gains realized through the Fund's trading or through your own redemption of shares. For some investors, a portion of the Fund's income may be subject to state and local taxes, as well as to the federal alternative minimum tax.

Risk is inherent in all investing. Investing in any investment company security involves risk, including the risk that you may receive little or no return on your investment or even that you may lose part or all of your investment. Therefore, before investing in the Common Shares, you should consider the risks as well as the other information in the prospectus.

More detailed information regarding these risks can be found in the Fund's prospectus.

Fund Risks: Credit Risk - a borrower may be unable to make interest or principal payments when they are due. Funds that invest in Municipal Bonds rely on the ability of the issuer to service its debt. This subjects the Fund to credit risk in that the municipal issuer may be fiscally unstable or exposed to large liabilities that could impair its ability to honor its obligations. Municipal issuers with significant debt service requirements, in the near-to mid-term, unrated issuers and those with less capital and liquidity to absorb additional expenses may be most at risk. To the extent the Fund invests in lower quality or high yield Municipal Bonds, it may be more sensitive to the adverse credit events in the municipal market. The treatment of municipalities in bankruptcy is more uncertain, and potentially more adverse to debt holders, than for corporate issues. Interest Rate Risk - the value of Municipal Bonds, similar to other fixed income securities, will likely drop as interest rates rise in the general market. Conversely, when rates decline, bond prices generally rise.

Past performance is no guarantee of future results. Diversification does not ensure a profit or guarantee against loss.

An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment and not as a trading vehicle.

Investors should consider the Fund's investment objective, risks, charges and expenses carefully before investing. The prospectus should be read carefully before investing. For more information, please read the prospectus, call your financial professional or call 844.569.4750.

The fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. Since the initial public offering, the Fund now trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market's value.

CFA® is a trademark owned by the CFA Institute.

MacKay Municipal Managers™ is a registered trademark of Mackay Shields.

1 May be includable in taxable income for purposes of the Federal alternative minimum tax.

2 The price at which a closed-end fund trades often varies from its 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.

3 MacKay Municipal Managers™ is a portfolio management team within MacKay Shields LLC ("MacKay Shields").

4 See prospectus for concentration limits with respect to the Fund’s direct investments in municipal bonds, although such exposure could be greater after factoring in the investments of the Underlying Funds in which the Fund may invest. The Fund, and the Underlying Funds in which the Fund invests, may invest in securities of any credit quality, including securities that are rated below investment grade that receive the lowest ratings from nationally recognized statistical rating organizations.

5 Leverage is a speculative technique that exposes a closed-end fund to greater risk and increased costs than if it were not used. The use of leverage may cause greater volatility in the level of a closed-end fund's NAV, market price and distributions on its common shares. Leverage will also result in higher fees to the closed-end fund manager because the amount of assets under management will be included in the Fund's managed assets. There can be no assurance that a closed-end fund will use leverage or that its leveraging strategy will be successful during any period in which it is employed.

6 The Fund will terminate on or before October 25, 2030 (the “Termination Date”); provided, that if the Board of Directors (“Board”) believes that, under then-current market conditions, it is in the best interests of the Fund to do so, the Fund may extend the Termination Date: (i) once for up to one year (i.e., up to October 25, 2031), and (ii) once for up to an additional six months (i.e., up to April 25, 2032), in each case upon the affirmative vote of a majority of the Board and without common stockholder approval. In addition, as of a date within twelve months preceding the Termination Date, the Board may cause the Fund to conduct a tender offer to all common stockholders to purchase Common Shares of the Fund at a price equal to the net asset value per Common Share on the expiration date of the tender offer (an “Eligible Tender Offer”). The Board has established that, following an Eligible Tender Offer, the Fund must have at least $100 million of net assets to ensure the continued viability of the Fund (the “Termination Threshold”). In an Eligible Tender Offer, the Fund will offer to purchase all Common Shares held by each common stockholder; provided, that if the number of properly tendered Common Shares would result in the Fund's net assets totaling less than the Termination Threshold, the Eligible Tender Offer will be terminated and no Common Shares will be repurchased pursuant to the Eligible Tender Offer. Instead, the Fund will begin (or continue) liquidating its portfolio and proceed to terminate on or before the Termination Date. Following the completion of an Eligible Tender Offer, the Board may eliminate the Termination Date upon the affirmative vote of a majority of the Board and without a Common Shareholder approval. In making a decision to eliminate the Termination Date to provide for the Fund’s perpetual existence, the Board will take such actions with respect to the continued operations of the Fund as it deems to be in the best interests of the Fund, based on market conditions at such time, the extent of Common Shareholder participation in the Eligible Tender Offer and all other factors deemed relevant by the Board in consultation with RiverNorth.

7 The Bloomberg Barclays Municipal Bond Index is considered representative of the broad market for investment grade, tax-exempt bonds with a maturity of at least one year. The index cannot be invested in directly and does not reflect fees and expenses.

8 Estimated Duration: Duration is a measure of the sensitivity of the price of a fixed income investment to a change in interest rates. Duration is expressed as a number of years. Duration is estimated by the adviser based on certain assumptions from third-party data and is subject to change. The difference between Unhedged and Hedged duration is that hedged duration includes the effect of a short US Treasury Futures position used to manage interest rate risk.

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