The RiverNorth/Oaktree High Income Fund seeks to provide investors with overall total
return consisting of long-term capital appreciation and income.
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 credit manager such as Oaktree Capital Management, L.P. ("Oaktree") 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
High Yield Bond
Senior Loan
RiverNorth manages the Tactical Closed-End Fund Strategy and Oaktree manages the High Yield Bond and Senior Loan Strategies. Oaktree tactically manages the allocation between the High Yield Bond and Senior Loan Strategies based on both market opportunities and the risk-reward trade-offs between the two asset classes.
The Fund provides investors unique market access to managers who are experts in their respective asset classes. The Fund also offers first time access in the U.S. to both Oaktree's Senior Loan and High Yield Bond Strategies in a daily priced vehicle.
Senior Loans
Description
Corporate loans
Floating tate
Secured
Participants: Institutional
Price Fluctuations: Historically stable when rates rise
Yield: Attractive vs. government and investment grade bonds2
Other Features: Little to no duration
High Yield Bonds
Description
Global corporate bonds
Fixed rate
Unsecured
Participants: Institutional
Price Fluctuations: Sensitive to rising rates and the economy
Yield: Attractive vs. government and investment grade corporate bonds2
Other Features: Generally intermediate duration
Closed-End Funds
Description
Diversified asset mix
Fixed number of shares
Brought to market via IPO
Participants: Retail/limited institutional
Price Fluctuations: Price relative to NAV fluctuates due to supply & demand
Yield:
Buying assets at discount to NAV enhances yield
Typically utilize leverage to enhance yield
Other Features: Opportunity to buy assets at a discount to liquidation value
Senior Loans
High Yield Bonds
Closed-End Funds
Description
• Corporate loans • Floating rate • Secured
• Global corporate bonds • Fixed rate • Unsecured
• Diversified asset mix • Fixed number of shares • Brought to market via IPO
Participants
Institutional
Institutional
Retail/limited institutional
Price fluctuations
Historically stable when rates rise
Sensitive to rising rates and the economy
Price relative to NAV fluctuates due to supply and demand
Yield
Attractive vs. government and investment grade bonds2
Attractive vs. government and investment grade corporate bonds
• Buying assets at discount to NAV enhances yield • Typically utilize
leverage to enhance yield
Other Features
Little to no duration
Generally intermediate duration
Opportunity to buy assets at a discount to liquidation value
Investment Rationale
High income portfolio focused on high yield bonds and senior loans with a tactical closed-end fund overlay
RiverNorth's strategy seeks to capitalize on inefficiencies within the closed-end fund space
The Oaktree strategies provide a value-oriented and risk-controlled approach to investing in
high yield bonds and senior loans
Flexibility to respond to market dynamics
Fund Information as of 8.31.2024
Class I (Institutional)
Class R (Retail)
NASDAQ Symbol
RNHIX
RNOTX
CUSIP
76881N806
76881N707
Inception Date
12.28.2012
Annual Report Expense Ratio
1.35%
1.60%
Total Expense Ratio3
2.24%
2.49%
Minimum Initial Investment
$100,000
$5,000
Minimum IRA Investment
$100,000
$1,000
Estimated Duration4 (years)
2.38
2.38
30-Day SEC Yield (net) as of 8.31.20245,6
5.95%
5.70%
30-Day SEC Yield (unsubsidized) as of 8.31.20245,6
5.63%
5.38%
Benchmarks
BofA Non-Financial Developed HY Constrained Index7, CS Leveraged Loan Index8
Fund Net Assets
$55.44M
Sales Load
None
Income Distributions
Monthly
Capital Gains Distributions
Annually
Performance
Total Returns for the Period Ending 9.30.2024
Sep
3 Mo
YTD
1 Year
3 Year†
5 Year†
10 Year†
Since Inception†*
RiverNorth/Oaktree High Income Fund, Class I
0.95%
4.05%
6.78%
13.16%
4.03%
4.09%
4.07%
4.28%
RiverNorth/Oaktree High Income Fund, Class R
0.93%
3.87%
6.58%
12.88%
3.77%
3.84%
3.81%
4.01%
BofA Non-Financial Developed HY Constrained Index7
1.74%
5.90%
7.96%
16.30%
2.46%
4.16%
4.28%
4.53%
CS Leveraged Loan Index8
0.73%
2.05%
5.62%
8.63%
5.96%
5.41%
4.72%
4.75%
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. You can obtain performance data current to the most recent month end by calling (888) 848-7569. 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: 12.28.2012
Portfolio
Portfolio asset allocations are estimates made by the adviser and are subject to change.
Strategy Weights as of 8.31.2024
Strategy
Weighting
Oaktree
85%
RiverNorth
15%
Oaktree
85%
RiverNorth
15%
Fixed Income Allocation as of 8.31.2024
Type
Allocation
High Yield
87%
Investment Grade
9%
Not Rated
4%
High Yield
87%
Investment Grade
9%
Not Rated
4%
Sector Allocation as of 8.31.2024
Sector
Weighting
High Yield
50%
Developed Foreign
20%
Bank Loans
12%
Investment Co. Bonds
8%
Cash
7%
US Government
1%
Convertibles
1%
High Yield
50%
Developed Foreign
20%
Bank Loans
12%
Investment Co. Bonds
8%
Cash
7%
US Government
1%
Convertibles
1%
The allocation does not add up to 100% as it reflects the estimated leverage utilized by the underlying funds.
Distributions
Distribution dates are estimates and subject to change.
Current Year Only
Show All
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Portfolio Management
Patrick Galley, CFAChief Executive Officer, Chief Investment OfficerRiverNorthRead full bio »
Steve O'Neill, CFAPortfolio ManagerRiverNorthRead full bio »
Sheldon StonePrincipal, Portfolio ManagerOaktreeRead full bio »
Ronnie Kaplan, CFAManaging Director, Portfolio ManagerOaktreeRead full bio »
David RosenbergManaging Director, Co-Portfolio ManagerOaktreeRead full bio »
Madelaine Jones, CFAManaging Director, Portfolio ManagerOaktreeRead full bio »
Anthony Shackleton, FCAManaging Director, Co-Portfolio ManagerOaktreeRead full bio »
Alap ShahManaging Director, Co-Portfolio ManagerOaktreeRead full bio »
Disclosures & Definitions
More detailed information regarding these risks can be found in the Fund's prospectus.
Fund Risks: Borrowing Risk – borrowings increase fund expenses and are subject to repayment,
possibly at inopportune times. Closed-End Fund Risk – closed-end funds are exchange traded, may
trade at a discount to their net asset values and may deploy leverage. Convertible Security Risk –
the market value of convertible securities adjusts with interest rates and the value of the
underlying stock. Credit Derivatives Risk – the use of credit derivatives is highly specialized,
involves default, counterparty and liquidity risks and may not perfectly correlate to the
underlying asset or liability being hedged. Currency Risk – foreign currencies will rise or
decline relative to the U.S. dollar. Derivatives Risk – derivatives are subject to counterparty
risk. Distressed and Defaulted Securities Risk – defaulted securities carry the risk of
uncertainty of repayment. Equity Risk – equity securities may experience volatility and the value
of equity securities may move in opposite directions from each other and from other equity markets
generally. Exchange Traded Note Risk – exchange traded notes represent unsecured debt of the issuer
and may be influenced by interest rates, credit ratings of the issuer or changes in value of the
reference index. Fixed Income Risk – the market value of fixed income securities adjusts with
interest rates and the securities are subject to issuer default. Foreign/Emerging Market Risk –
foreign securities may be subject to inefficient or volatile markets, different regulatory regimes
or different tax policies. These risks may be enhanced in emerging markets. Floating Interest Rate
Risk – loans pay interest based on the London Interbank Offered Rate (LIBOR) and a decline in LIBOR
could negatively impact the Fund's return. Investment Style Risk – investment strategies may come in
and out of favor with investors and may underperform or outperform at times. Large Shareholder
Purchase and Redemption Risk – The Fund may experience adverse effects when certain large
shareholders purchase or redeem large amounts of shares of the Fund. Liquidity Risk – illiquid
investments may be difficult or impossible to sell. Loans Risk – loans may be unrated or rated
below investment grade and the pledged collateral may lose value. Secondary trading in loans is
not fully-developed and may result in illiquidity. Management Risk – there is no guarantee that
the adviser's or sub-adviser's investment decisions will produce the desired results. Market Risk –
economic conditions, interest rates and political events may affect the securities markets.
Preferred Stock Risk – preferred stocks generally pay dividends, but may be less liquid than
common stocks, have less priority than debt instruments and may be subject to redemption by the
issuer. Security Risk – the value of the Fund may increase or decrease in response to the prospects of the issuers of securities and loans held in the Fund. Swap Risk – swap agreements are subject
to counterparty default risk and may not perform as intended. Tax Risk – new federal or state
governmental action could adversely affect the tax-exempt status of securities held by the Fund,
resulting in higher tax liability for shareholders and potentially hurting Fund performance as well.
Underlying Fund Risk – underlying funds have additional fees, may utilize leverage, may not
correlate to an intended index and may trade at a discount to their net asset values. Valuation
Risk – Loans and fixed-income securities are traded "over the counter" and because there is no
centralized information regarding trading, the valuation of loans and fixed-income securities may
vary.
Past performance is no guarantee of future results.
High yield bonds are subject to interest rate risk. If rates increase, the value generally declines.
ALPS Distributors, Inc. is not affiliated with RiverNorth Capital Management, LLC or Oaktree Capital Management, L.P.
CFA® is a trademark owned by the CFA Institute.
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 Investment grade is a rating that indicates that a municipal or corporate bond has a relatively low risk of default.
3 The expense ratio as disclosed in the Fund's annual report dated 9.30.2023 only includes the direct expenses paid by shareholders from their investment. The expense ratio as disclosed in the Fund's prospectus dated 1.28.2024 is required to include the indirect expenses of investing in underlying funds. The adviser has contractually agreed to defer the collection of fees and/or reimburse expenses, but only to the extent necessary to limit Total Annual Fund Operating Expenses (excluding brokerage fees and commissions; borrowing costs, such as (a) interest and (b) dividends on securities sold short; taxes; indirect expenses incurred by the underlying funds in which the Fund invests; and extraordinary expenses) to 1.35% (RNHIX) and 1.60% (RNOTX) of the average daily net assets of the Fund through 1.31.2025.
4 Estimated 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 by third-party data and is subject to change.
5 30-Day SEC Yield: The yield figure reflects the dividends and interest earned during the period, after the deduction of the Funds' expenses. Unsubsidized SEC Yield: The yield excludes contractual expense reimbursements, resulting in a lower yield.
6 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.
7 The BofA Merrill Lynch Developed Markets High Yield Constrained Index contains all securities in the BofA Merrill Lynch Global High Yield index from developed markets countries but cap issuer exposure at 2%. Developed markets is defined as an FX-G10 member, a Western European nation, or a territory of the U.S. or a Western European nation. The index tracks the performance of USD, CAD, GBP and EUR denominated below investment grade corporate debt publicly issued in the major domestic or Eurobond markets. Qualifying securities must have a below investment grade rating (based on an average of Moody's, S&P and Fitch). The index cannot be invested in directly and does not reflect fees and expenses.
8 CS Leveraged Loan Index tracks the investable market of the U.S. dollar denominated leveraged loan market. It consists of issues rated "5B" or lower, meaning that the highest rated issues included in this index are Moody's/S&P ratings of Baa1/BB+ or Ba1/BBB+. All loans are funded term loans with a tenor of at least one year and are made by issuers domiciled in developed countries. The index cannot be invested in directly and does not reflect fees and expenses.