RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (the "Fund") seeks to provide current income and overall 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)1. RiverNorth also believes combining a closed-end fund strategy with a proven fixed income manager such as DoubleLine Capital LP ("DoubleLine®") provides an attractive investment vehicle for investors.
Diversification does not ensure a profit or guarantee against loss.
Investment Strategy
RiverNorth allocates the Fund's assets among three principal strategies: Tactical Closed-End Fund Income Strategy, Alternative Credit Strategy, and Opportunistic Income Strategy. RiverNorth manages the Tactical CEF Income Strategy and the Alternative Credit Strategy, DoubleLine manages the Opportunistic Income Strategy.
* Investments may include securities that have a rating that is below investment grade, including "high yield" securities.
High yield bonds are subject to interest rate risk. If rates increase, the value generally declines.
Investment Rationale
RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. is a multi-manager closed-end fund that opportunistically invests in fixed income securities, alternative credit instruments and tactically invests in closed-end funds in order to potentially provide:
Access to a diversified portfolio of fixed income securities, alternative credit instruments and closed-end funds representing a wide array of underlying asset classes
Value from investments in both the closed-end fund, alternative credit and fixed income markets
Use of leverage in order to enhance current income and capitalize at times on market dislocations2
The Fund also provides:
Active portfolio management by RiverNorth & DoubleLine, two award-winning managers in their respective disciplines, who have worked together since 2010
Fund Information as of 3.31.2024
NYSE Symbol
OPP
CUSIP
76882G107
Inception Date
9.27.2016
Total Managed Assets*
$339.62M
Benchmark
Bloomberg US Aggregate Bond Index3
Distribution Frequency
Monthly
Estimated Duration4 (years)
3.63
* Managed assets include assets attributable to leverage.
Performance
Total Returns for the Period Ending 3.31.2024
Mar
3 Mo
1 Year
3 Year†
5 Year†
Since Inception†*
RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. Net Asset Value
1.70%
2.46%
10.71%
-1.83%
0.90%
2.30%
RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. Market Price
5.82%
6.80%
16.47%
-4.01%
1.47%
1.36%
Bloomberg US Aggregate Bond Index3
0.92%
-0.78%
1.70%
-2.46%
0.36%
0.66%
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.
† Annualized
* Inception Date: 9.27.2016
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.
Expenses do not include the effects of leverage.
Portfolio
Portfolio asset allocations are estimates made by the adviser and are subject to change. Based on market value (including assets attributable to leverage).
Strategy Weightings as of 3.31.2024
Strategy
Weighting
Opportunistic Income Strategy [DoubleLine]
65%
Alternative Credit Strategy [RiverNorth]
18%
Tactical CEF Income Strategy [RiverNorth]
17%
Opportunistic Income Strategy [DoubleLine]
65%
Alternative Credit Strategy [RiverNorth]
18%
Tactical CEF Income Strategy [RiverNorth]
17%
Credit Quality Distribution as of 3.31.2024
Credit Quality
Allocation
Investment Grade
37%
Not Rated
36%
High Yield
27%
Investment Grade
37%
Not Rated
36%
High Yield
27%
Sector Allocation as of 3.31.2024
Sector
Weighting
Non-Agency MBS
29%
Small Business Whole Loans
22%
US Government
13%
Investment Co. Bonds
9%
CMBS
7%
Agency MBS
6%
Other
4%
ABS
3%
Cash
3%
Bank Loans
3%
High Yield
1%
Non-Agency MBS
29%
Small Business Whole Loans
22%
US Government
13%
Investment Co. Bonds
9%
CMBS
7%
Agency MBS
6%
Other
4%
ABS
3%
Cash
3%
Bank Loans
3%
High Yield
1%
The allocation does not add up to 100% as it reflects the estimated leverage utilized by the underlying funds.
Distribution dates are estimates and subject to change.
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Preferred Issue
4.375% Series A Cumulative Preferred Stock
4.75% Series B Cumulative Preferred Stock
NYSE Trading Symbol
OPPPRA
OPPPRB
Number of shares
2,400,000
2,400,000
Initial Public Offering Price
$25.00 per Share
$25.00 per Share
Liquidation Preference
$25.00 per Share plus accumulated and unpaid dividends, if any
$25.00 per Share plus accumulated and unpaid dividends, if any
Dividend Rate
4.375% per annum
4.75% per annum
Original Issue Date
October 23, 2020
November 22, 2021
Non-Call Period and Redemption Information
The Series A Preferred Shares are generally not redeemable at the Fund's option prior to November 15, 2025, and are subject to mandatory redemption by the Fund in certain circumstances. On or after November 15, 2025, the Fund may redeem in whole or from time to time in part outstanding Series A Preferred Shares at a redemption price per share equal to the per share liquidation preference plus accumulated and unpaid dividends, if any, through the date of redemption.
The Series B Preferred Shares are generally not redeemable at the Fund's option prior to February 15, 2027, and are subject to mandatory redemption by the Fund in certain circumstances. On or after February 15, 2027, the Fund may redeem in whole or from time to time in part outstanding Series B Preferred Shares at a redemption price per share equal to the per share liquidation preference plus accumulated and unpaid dividends, if any, through the date of redemption.
Dividend Payment Dates
Quarterly every February 15, May 15, August 15 and November 15. If a dividend payment date falls on a non-business day, the applicable dividend payment will be made on the next business day and no additional dividend payment will accrue as a result of such delayed payment.
Series A Commencement Date: November 15, 2020
Series B Commencement Date: February 15, 2022
Preferred Issue: Distributions
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The distribution was calculated based on the preferred shares Liquidation Preference of $25.00 per share and most current distribution rate per share of 4.375% Series A Cumulative Preferred Stock and 4.75% Series B Cumulative Preferred Stock, respectively. 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.
Portfolio Management
Patrick Galley, CFAChief Executive Officer, Chief Investment OfficerRiverNorthRead full bio »
Steve O'Neill, CFAPortfolio ManagerRiverNorthRead full bio »
Jeffrey GundlachChief Executive Officer, Chief Investment OfficerDoubleLineRead full bio »
Jeffrey ShermanDeputy Chief Investment OfficerDoubleLineRead full bio »
Disclosures & Definitions
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.
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.
DoubleLine® is a registered trademark of DoubleLine Capital LP.
1 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
2 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.
3 The Bloomberg US 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.
4 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.
