RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

Ticker: OPP
Literature
Investment Objective & Philosophy
Investment Strategy
Investment Rationale
Fund Information
Preferred Issue
Portfolio Detail
Portfolio Statistics
Performance
Portfolio Managers
Distributions
Disclosures & Definitions

Fund Data as of 10.30.2020

NYSE Ticker NAV Market Price Premium/Discount Total Net Assets
OPP $14.78 $13.42 -9.20% $204.88M

Literature

Investment Objective & Philosophy

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 two principal strategies: Tactical Closed-End Fund Income Strategy (managed by RiverNorth) and Opportunistic Income Strategy (managed by DoubleLine).

* Investments may include securities that have a rating that is below investment grade, including "high yield" securities.

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

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 and tactically invests in closed-end funds in order to potentially provide:

  • Access to a diversified portfolio of fixed income securities and closed-end funds representing a wide array of underlying asset classes
  • Value from investments in both the closed-end fund and fixed income markets
  • Use of leverage in order to enhance current income and capitalize at times on market dislocations

The Fund also provides:

  • Contingent conversion by shareholder vote to open-end in 5 years
  • Active portfolio management by RiverNorth & DoubleLine, two award-winning managers in their respective disciplines, who have worked together since 2010

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.

Fund Information

Preferred Issue

4.375% Series A Cumulative Preferred Stock

  • Listing: NYSE trading symbol "OPPPRA"
  • OPPPRA Prospectus
  • Number of Shares: 2,400,000 shares
  • Initial Public Offering Price: $25.00 per Share
  • Liquidation Preference: $25.00 per Share plus accumulated and unpaid dividends, if any
  • Dividend Rate: 4.375% per annum
  • Original Issue Date: October 23, 2020
  • 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.
  • Dividend Payment Date: Every February 15, May 15, August 15 and November 15, beginning November 16, 2020. 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.

Preferred Issue: Distributions

Record Date Ex-Date Payable Date Total Distribution
11.02.20 10.30.20 11.16.20 $0.06684

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%. 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 Detail As of 9.30.2020

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
Strategy Weighting
Opportunistic Income Strategy [DoubleLine] 81%
Tactical CEF Income Strategy [RiverNorth] 19%
Opportunistic Income Strategy [DoubleLine] 81%
Tactical CEF Income Strategy [RiverNorth] 19%
Fixed Income Allocation
Fixed Income Class Allocation
High Yield 38%
Not Rated 36%
Investment Grade 26%
High Yield 38%
Not Rated 36%
Investment Grade 26%
Sector Breakdown
Sector Weighting
Non-Agency MBS 42%
Agency MBS 16%
Investment Co. Bonds 8%
CMBS 7%
Bank Loans 7%
Cash 5%
Other 5%
High Yield 5%
ABS 4%
BDCs 2%
Emerging Market Debt 1%
Equity 1%
Non-Agency MBS 42%
Agency MBS 16%
Investment Co. Bonds 8%
CMBS 7%
Bank Loans 7%
Cash 5%
Other 5%
High Yield 5%
ABS 4%
BDCs 2%
Emerging Market Debt 1%
Equity 1%

The allocation does not add up to 100% as it reflects the estimated leverage utilized by the underlying funds.

Portfolio Statistics as of 9.30.2020

OPP
Estimated Duration (years)3 1.82

Performance

Total Returns for the Period Ending 9.30.2020

  September 3 Month YTD 1 Year 3 Year Since
Inception*†
RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.
Net Asset Value
0.66% 4.22% -3.58% -3.60% 1.88% 3.66%
RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.
Market Price
-2.13% 2.45% -6.53% -8.90% 1.28% 1.47%
Bloomberg Barclays US Aggregate Bond Index2 -0.05% 0.62% 6.79% 6.98% 5.24% 3.86%

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: 9.27.2016

Annualized

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 Managers

Patrick Galley, CFA - RiverNorth

Patrick joined RiverNorth in 2004 and serves as Chief Executive Officer and Chief Investment Officer. Patrick is responsible for strategic planning and business development and oversees all portfolio management activities at RiverNorth. In addition, Patrick serves as the President and Chairman of all RiverNorth proprietary funds.

Read full bio »

Steve O'Neill, CFA - 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 »

Jeffrey Gundlach - DoubleLine

Mr. Gundlach is the Chief Executive Officer and Chief Investment Officer of DoubleLine. He is recognized as an expert* in bond and fixed income investments. In 2012, he was named one of the "50 Most Influential" by Bloomberg Markets magazine. In 2013, he was named "Money Manager of the Year" by Institutional Investor. He is a graduate of Dartmouth College summa cum laude holding a BA in Mathematics and Philosophy.

* Money News on 5.26.2011: Headline of the story: Bond Expert Gundlach: Housing Collapse to Spark Second Financial Meltdown. Morningstar on 1.5.2012: "...Jeffrey Gundlach, a high-profile fixed-income expert..."

Jeffrey Sherman - DoubleLine

Mr. Sherman joined DoubleLine in 2009, currently serves as the Deputy Chief Investment Officer and is a member of DoubleLine's Executive Management and Fixed Income Asset Allocation Committees. He additionally, serves as a portfolio manager for derivative-based and multi-asset strategies.

Distributions (tentative schedule)4

Record Date Ex-Date Payable
Date
Income Short Term
Gains
Long Term
Gains
Total Distributions Section 19a-1
Notice
DISTRIBUTIONS PAID
11.18.16 11.16.16 11.30.16 $0.11000 $0.00000 $0.00000 $0.11000 November
12.16.16 12.14.16 12.30.16 $0.11000 $0.00000 $0.00000 $0.11000 - -
1.13.17 1.11.17 1.31.17 $0.11000 $0.00000 $0.00000 $0.11000 - -
2.17.17 2.15.17 2.28.17 $0.11000 $0.00000 $0.00000 $0.11000 - -
3.17.17 3.15.17 3.31.17 $0.12000 $0.00000 $0.00000 $0.12000 - -
4.21.17 4.19.17 4.28.17 $0.12000 $0.00000 $0.00000 $0.12000 - -
5.12.17 5.10.17 5.31.17 $0.12000 $0.00000 $0.00000 $0.12000 - -
6.16.17 6.14.17 6.30.17 $0.12000 $0.00000 $0.00000 $0.12000 - -
7.14.17 7.12.17 7.31.17 $0.12000 $0.00000 $0.00000 $0.12000 - -
8.18.17 8.16.17 8.31.17 $0.12000 $0.00000 $0.00000 $0.12000 - -
9.15.17 9.13.17 9.29.17 $0.12000 $0.00000 $0.00000 $0.12000 - -
10.13.17 10.11.17 10.31.17 $0.15000 $0.00000 $0.00000 $0.15000 October
11.17.17 11.15.17 11.30.17 $0.15000 $0.00000 $0.00000 $0.15000 November
12.15.17 12.14.17 12.29.17 $0.06380 $0.08496 $0.00124 $0.15000 December
1.16.18 1.17.18 1.31.18 $0.15000 $0.00000 $0.00000 $0.15000 January
2.14.18 2.15.18 2.28.18 $0.15000 $0.00000 $0.00000 $0.15000 February
3.14.18 3.15.18 3.29.18 $0.15000 $0.00000 $0.00000 $0.15000 March
4.18.18 4.19.18 4.30.18 $0.15000 $0.00000 $0.00000 $0.15000 April
5.9.18 5.10.18 5.31.18 $0.15000 $0.00000 $0.00000 $0.15000 May
6.13.18 6.14.18 6.29.18 $0.15000 $0.00000 $0.00000 $0.15000 June
7.11.18 7.12.18 7.31.18 $0.15000 $0.00000 $0.00000 $0.15000 July
8.15.18 8.16.18 8.31.18 $0.15000 $0.00000 $0.00000 $0.15000 August
9.12.18 9.13.18 9.28.18 $0.15000 $0.00000 $0.00000 $0.15000 September
10.10.18 10.11.18 10.31.18 $0.15000 $0.00000 $0.00000 $0.15000 October
11.14.18 11.15.18 11.30.18 $0.15000 $0.00000 $0.00000 $0.15000 November
12.12.18 12.13.18 12.28.18 $0.15000 $0.00000 $0.00000 $0.15000 December
1.17.19 1.16.19 1.31.19 $0.18330 $0.00000 $0.00000 $0.18330 January
2.14.19 2.13.19 2.28.19 $0.18330 $0.00000 $0.00000 $0.18330 February
3.14.19 3.13.19 3.29.19 $0.18330 $0.00000 $0.00000 $0.18330 March
4.18.19 4.17.19 4.30.19 $0.18330 $0.00000 $0.00000 $0.18330 April
5.16.19 5.15.19 5.31.19 $0.18330 $0.00000 $0.00000 $0.18330 May
6.13.19 6.12.19 6.28.19 $0.18330 $0.00000 $0.00000 $0.18330 June
7.11.19 7.10.19 7.31.19 $0.18330 $0.00000 $0.00000 $0.18330 July
8.15.19 8.14.19 8.30.19 $0.18330 $0.00000 $0.00000 $0.18330 August
9.12.19 9.11.19 9.30.19 $0.18330 $0.00000 $0.00000 $0.18330 September
10.17.19 10.16.19 10.31.19 $0.18330 $0.00000 $0.00000 $0.18330 October
11.14.19 11.13.19 11.29.19 $0.18330 $0.00000 $0.00000 $0.18330 November
12.12.19 12.11.19 12.31.19 $0.18330 $0.00000 $0.00000 $0.18330 December
1.17.20 1.16.20 1.31.20 $0.18000 $0.00000 $0.00000 $0.18000 January
2.14.20 2.13.20 2.28.20 $0.18000 $0.00000 $0.00000 $0.18000 February
3.17.20 3.16.20 3.31.20 $0.18000 $0.00000 $0.00000 $0.18000 March
4.16.20 4.15.20 4.30.20 $0.18000 $0.00000 $0.00000 $0.18000 April
5.15.20 5.14.20 5.29.20 $0.18000 $0.00000 $0.00000 $0.18000 May
6.16.20 6.15.20 6.30.20 $0.18000 $0.00000 $0.00000 $0.18000 June
7.17.20 7.16.20 7.31.20 $0.18000 $0.00000 $0.00000 $0.18000 July
8.14.20 8.13.20 8.31.20 $0.18000 $0.00000 $0.00000 $0.18000 August
9.16.20 9.15.20 9.30.20 $0.18000 $0.00000 $0.00000 $0.18000 September
10.16.20 10.15.20 10.30.20 $0.18000 $0.00000 $0.00000 $0.18000 October
DISTRIBUTIONS DECLARED
11.13.20 11.12.20 11.30.20 $0.18000 $0.00000 $0.00000 $0.18000 - -
12.17.20 12.16.20 12.31.20 $0.18000 $0.00000 $0.00000 $0.18000 - -

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 The Bloomberg Barclays 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.

3 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.

4 The Fund has implemented a level distribution policy resulting in monthly distributions of $0.18 per share of common stock, representing an annualized distribution rate of 12.5%. 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 Fund estimates that 29.60% of the distribution is attributable to current year net investment income and 70.40% is attributable to return of capital. 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.