* The Fund began trading on the New York Stock Exchange (NYSE) effective June 12, 2019 under the ticker symbol RSF. Formerly the Fund was known as RMPLX and was purchased directly.
|NYSE Ticker||NAV||Market Price||Premium/Discount||Total Net Assets|
The objective of RiverNorth Marketplace Lending Corporation is to seek a high level of current income.
RiverNorth Marketplace Lending Corporation ("the Fund") seeks to accomplish its objective by constructing a diversified1 portfolio of consumer, small business and specialty finance debt assets generated from selected marketplace lending originators.
The Fund buys and holds whole loans originated from multiple online marketplace lenders, providing a bundled solution that simplifies access to the asset class. The strategy offers diversification across a variety of facets: underwriting, customer acquisition and servicing. Continuous due diligence is performed on the platforms utilizing proprietary systems to monitor daily loan-level data.
The default history for marketplace lending is limited and future defaults may be higher than historical defaults.
** Managed assets include assets attributable to leverage.
*** Pursuant to Rule 23c-3 of the 1940 Act, the Fund must make a quarterly repurchase offer of at least 5% of the Fund's outstanding shares. The Fund's Board of Directors will set the actual level of the quarterly repurchase offers. It is possible that a repurchase offer may be oversubscribed, in which case shareholders may only have a portion of their shares repurchased. Subject to the above, quarterly repurchase offers and liquidity are limited.
5.875% Series A Term Preferred Stock Due 2024
|Record Date||Ex-Date||Payable Date||Total Distribution|
The distribution was calculated based on the preferred shares Liquidation Preference of $25.00 per share and most current distribution rate per share of 5.875%. Distributions may be paid from sources of income other than ordinary income, such as net realized short-term capital gains, net realized long term capital gains and return of capital. The current distribution has been paid from ordinary income. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year's distributions) contained in shareholders' 1099-DIV forms after the end of the year.
|30-Day SEC Yield (net)5, 9||7.58%|
|30-Day SEC Yield (unsubsidized)5, 9||7.34%|
|Weighted Average FICO6||712|
|Total Number of Loans||15,882|
|Average Loan Size||$8,705|
Portfolio asset allocations are estimates made by the adviser and are subject to change.
|Top 10 States Total Exposure: 56.5|
Allocations are estimates made by the adviser and subject to change.
|September||3 Month||YTD||1 Year||3 Year||Since
|RiverNorth Marketplace Lending Corporation
Net Asset Value
|RiverNorth Marketplace Lending Corporation
|Bloomberg Barclays U.S. Aggregate Bond Index7||-0.53%||2.27%||8.52%||10.30%||2.92%||2.95%|
|November||3 Month||YTD||1 Year†||3 Year†||Since
|RiverNorth Marketplace Lending Corporation
Net Asset Value
|RiverNorth Marketplace Lending Corporation
|Bloomberg Barclays U.S. Aggregate Bond Index7||-0.05%||-0.28%||8.79%||10.79%||4.10%||2.88%|
The Fund began trading on the NYSE effective June 12, 2019 under the ticker symbol RSF. Formerly the Fund was known as RMPLX and was purchased directly. The performance data above reflects shares of the Fund when it was known as RMPLX. Longer dated market price returns are a blend of the NAV return until June 11th, 2019 combined with the market price return thereafter.
* RSF Inception Date: 9.22.2016
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, when redeemed, may be worth more or less than their original cost. 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. Other fees and expenses are applicable to an investment in this fund.
The Fund's gross expense ratio is 2.92%. The net expense ratio is 2.99%, which is higher than the gross expense ratio due to the contractual expense recoupment in effect through 8.19.2018. This ratio reflects the direct and indirect expenses paid by the Fund. The net expense ratio represents the percentage paid by investors.
The Fund operating expense of 1.95% is equal to the net expense ratio minus the Loan Servicing Fee incurred by the Fund. The Fund's Management Fee is 1.25%.
Patrick Galley, CFA
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.
Andrew Kerai, CFA
Andrew joined RiverNorth in 2015 and serves as Portfolio Manager and Senior Credit Strategist. Andrew works with the firm's marketplace lending investment team in analyzing credit performance and portfolio positioning within the strategy.
Janae joined RiverNorth in 2016 and serves as a Portfolio Manager and Credit & Portfolio Risk Manager. Janae is responsible for quantitative portfolio analysis and asset valuation of the firm's marketplace lending strategy assets, with a focus on building proprietary default and prepayment models.
|Total Distributions||Section 19a-1
|4.16.20||4.15.20||4.30.20||- -||- -||- -||- -||- -|
|5.15.20||5.14.20||5.29.20||- -||- -||- -||- -||- -|
|6.16.20||6.15.20||6.30.20||- -||- -||- -||- -||- -|
|7.17.20||7.16.20||7.31.20||- -||- -||- -||- -||- -|
|8.14.20||8.13.20||8.31.20||- -||- -||- -||- -||- -|
|9.16.20||9.15.20||9.30.20||- -||- -||- -||- -||- -|
|10.16.20||10.15.20||10.30.20||- -||- -||- -||- -||- -|
|11.13.20||11.12.20||11.30.20||- -||- -||- -||- -||- -|
|12.17.20||12.16.20||12.31.20||- -||- -||- -||- -||- -|
* Since the last distribution made by the Fund was on May 30, 2019, the distribution payable on July 31, 2019 will represent both the June distribution of $0.18 per share and the July distribution of $0.18 per share for a total distribution of $0.36 per share.
See the prospectus for a more detailed description of Fund risks. Investing involves risk. Principal loss is possible.
If a borrower is unable to make its payments on a loan, the Fund may be greatly limited in its ability to recover any outstanding principal and interest under such loan, as (among other reasons) the Fund may not have direct recourse against the borrower or may otherwise be limited in its ability to directly enforce its rights under the loan, whether through the borrower or the platform through which such loan was originated, the loan may be unsecured or under-collateralized, and/or it may be impracticable to commence a legal proceeding against the defaulting borrower. The Marketplace Lending Instruments in which the Fund may invest will not typically be guaranteed or insured by any third-party and will not typically be backed by any governmental authority. Prospective borrowers supply a variety of information regarding the purpose of the loan, income, occupation and employment status (as applicable) to the lending platforms. As a general matter, platforms do not verify the majority of this information, which may be incomplete, inaccurate, false or misleading. Prospective borrowers may misrepresent any of the information they provide to the platforms, including their intentions for the use of the loan proceeds. Marketplace Lending Instruments are generally not rated by the nationally recognized statistical rating organizations ("NRSROs"). Such unrated instruments may be comparable in quality to securities falling into any of the ratings categories used by such NRSROs. Accordingly, certain of the Fund's unrated investments could constitute a highly risky and speculative investment, similar to an investment in "junk" bonds. The Marketplace Lending Instruments in which the Fund may invest may have varying degrees of credit risk and the Fund will not be restricted by any borrower credit criteria or credit risk limitation. There can be no assurance that payments due on underlying Marketplace Loans will be made. At any given time, the Fund's portfolio may be substantially illiquid and subject to increased credit and default risk. The Shares therefore should be purchased only by investors who could afford the loss of the entire amount of their investment. The Company's fees and expenses may be considered high and, as a result, such fees and expenses may offset the Company's profits. A portion of the investments executed for the Company may take place in foreign markets. As a result of the foregoing and other risks described in this Prospectus, an investment in the Fund is considered to be highly speculative.
Diversification does not ensure a profit or a guarantee against loss.
1 The Fund is classified as non-diversified, which means the Fund may invest a larger percentage of its assets in the securities of a smaller number of issuers than a diversified fund. Investment in securities of a limited number of issuers exposes the Fund to greater market risk and potential losses than if its assets were diversified among the securities of a greater number of issuers.
2 Duration is calculated by RiverNorth and 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.
3 Yield is the income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.
4 The Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of investment-grade fixed-rate debt issues with maturities of at least one year. The index cannot be invested in directly and does not reflect fees and expenses. The Barclays Capital U.S. Aggregate Bond Index is listed for broad market comparison purposes only. The securities in the index do not correlate to those held in the Fund.
5 30-Day SEC Yield reflects the dividends and interest earned during the period, after the deduction of the Fund's expenses. Unsubsidized 30-Day SEC Yield excludes contractual expense reimbursements, resulting in a lower yield.
6 The weighted average of all the FICO scores in the Fund. It is calculated by weighting the FICO score of each loan by its outstanding balance. The measure gives investors an idea of how creditworthy the Fund's underlying loans are overall. The lower the weighted average FICO score, the less creditworthy, and riskier the portfolio. Related: FICO score is a type of credit score created by the Fair Isaac Corporation. Lenders use borrowers' FICO scores along with other details on borrowers' credit reports to assess and determine whether to extend credit. Small business loans do not have FICO scores.
7 Based on the Fund's most recent distribution date of 11.29.2019 net asset value (NAV) of $18.43 and most current distribution rate per share of $0.18000. Distributions have been paid from sources of income other than ordinary income, such as net realized short-term capital gains, net realized long-term capital gains and return of capital. Based on current estimates, we anticipate the current distribution has been paid from ordinary income. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year's distributions) contained in shareholders' 1099-DIV forms after the end of the year.
8 Leverage ratio is the amount outstanding on credit facility/Total Managed Assets of the Fund. Credit facility is a loan or collection of loans taken on by a business.
9 The Fund pays periodic distributions consisting of dividend income, return of capital, and capital gains. However, the tax characteristics of these distributions cannot be fully determined until after the end of year when the Fund's underlying investments designate or reclassify the composition of their payments. In the interim, the Fund estimates return of capital rates based on the previous year's distribution. As a result, a portion of the quoted SEC Yield may consist of an estimated amount of return of capital.
As of the prospectus dated 10.29.2018, the adviser has contractually agreed to waive or reimburse expenses of the Fund (other than brokerage fees and commissions; loan servicing fees; borrowing costs such as (i) interest and (ii) dividends on securities sold short; taxes; indirect expenses incurred by the underlying funds in which the Fund may invest; the cost of leverage; and extraordinary expenses) to the extent necessary to limit the Fund's total annual operating expenses to 1.95% of the average daily Managed Assets for that period. The Adviser may recover from the Fund expenses reimbursed for three years after the date of the payment or waiver if the Fund's operating expenses, including the recovered expenses, falls below the expense cap. The amount of any recovery, taken together with the fees and expenses of the Fund at the time of recovery, will not exceed the lesser of (i) the expense cap in effect at the time the expenses were reimbursed, and (ii) the expense cap in effect at the time the recovery is sought. Subject to the foregoing waiver or reimbursement of Fund expenses, the Shareholders will indirectly bear all of the expenses of the Fund. The net expense ratio represents the percentage paid by investors.
Leverage creates risks which may adversely affect returns.
CFA® is a trademark owned by the CFA Institute.
Past performance is no guarantee of future results.