RiverNorth Specialty Finance Corporation
Ticker: RSF
Overview
Performance
Portfolio
Distributions
Preferred Issue
Management

Overview

Fund Data (as of) NYSE Ticker NAV Ticker NAV Market Price Premium/Discount Total Net Assets
12.1.2021 RSF XRSFX $20.09 $19.64 -2.24% $82.61M

The Market Price ticker symbol represents the Fund's secondary market price per share as it is traded on the NYSE. The NAV ticker symbol represents the Fund's Net Asset Value per share as it is reported by the Fund Sponsor via NASDAQ.

Fund Reporting
Tax Information

Media

Podcast: The NAVigator 12.18.2020 - Andrew Kerai, co-portfolio manager of RiverNorth Specialty Finance Corporation talked about the credit markets on The NAVigator.

Investment Objective & Strategy Overview

The objective of RiverNorth Specialty Finance Corporation is to seek a high level of current income.

The Fund seeks to achieve its investment objective by investing in credit instruments, including a portfolio of securities of specialty finance and other Financial companies that the Fund's Advisor, RiverNorth Capital Management, LLC ("RiverNorth") believes offer attractive opportunities for income.

The Fund may invest in income-producing securities of any maturity and credit quality, including below investment grade, and equity securities, including exchange traded funds and registered closed-end funds.

Fund Highlights

  • Broadened investment mandate aims to significantly enhance the risk-return profile of the portfolio
  • Exposure to a broad range of credit-orientated products, with an emphasis on liquid and tradeable products
  • Seeks short duration1 to minimize interest rate and credit risk
  • Attractive yield2 profile potential
  • Experienced manager with a long record of managing price inefficiencies

Structural Highlights

  • Quarterly repurchase offers equal to 5-25% of the Fund's net asset value (NAV)
  • Distribution yield3 (based on the October 29th, 2021 closing price of $19.6700) of 9.30%
  • Up to $35 million buyback program to repurchase shares at a discount in the secondary market

Fund Information as of 10.31.2021

NYSE Symbol RSF
CUSIP 76882B108
Inception Date 9.22.2016
Structure Closed-end interval fund
Net Assets $83.5M
Managed Assets* $131.4M
Repurchase Program** Quarterly offer to repurchase 5%-25% of shares
Distribution Frequency Monthly
Tax Reporting 1099
Net Asset Value (NAV) Daily
Distribution Yield3 9.30%
Leverage Ratio4 36.4%

* 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.

Performance

Total Returns for the Period Ending 9.30.2021 Q3 2021 1 Year 3 Year Since
Inception*†
RiverNorth Specialty Finance Corporation
Net Asset Value
2.45% 27.55% 6.07% 5.33%
RiverNorth Specialty Finance Corporation
Market Price
-1.25% 43.22% 5.35% 4.91%
Bloomberg U.S. Aggregate Bond Index5 0.05% -0.90% 5.36% 2.96%
Total Returns for the Period Ending 10.31.2021 Oct 3 Mo YTD 1 Year 3 Year 5 Year Since
Inception*†
RiverNorth Specialty Finance Corporation
Net Asset Value
1.86% 3.36% 20.10% 30.49% 6.78% 5.54% 5.62%
RiverNorth Specialty Finance Corporation
Market Price
3.23% 3.23% 28.56% 46.22% 6.54% 5.39% 5.48%
Bloomberg U.S. Aggregate Bond Index5 -0.03% -1.08% -1.58% -0.48% 5.63% 3.10% 2.90%

† Annualized   * 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 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%.

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.

Portfolio

Portfolio Composition: Allocation By Loan Type as of 10.31.2021
Type Exposure
Investment Company Debt 34%
Small Business Whole Loans 31%
BDC & Other CEF Equity Securities 17%
Special Purpose Acquisition Companies (SPACs) 14%
Cash 2%
Marketplace Lending ABS Debt Securities 1%
Marketplace Lending ABS Residual Securities 1%
Investment Company Debt 34%
Small Business Whole Loans 31%
BDC & Other CEF Equity Securities 17%
Special Purpose Acquisition Companies (SPACs) 14%
Cash 2%
Marketplace Lending ABS Debt Securities 1%
Marketplace Lending ABS Residual Securities 1%

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

Distributions

Show Current Year Only Show All

Repurchase Offer Schedule

  • Repurchase Amount: Up to 5% of the Fund's Outstanding Shares of Common Stock
EventDate*
Q1 - Repurchase Offer Mailing Date Monday, December 6, 2021
Q1 - Repurchase Offer Deadline Wednesday, January 5, 2022
Q2 - Repurchase Offer Mailing Date Monday, March 7, 2022
Q2 - Repurchase Offer Deadline Wednesday, April 6, 2022
Q3 - Repurchase Offer Mailing Date Monday, June 6, 2022
Q3 - Repurchase Offer Deadline Wednesday, July 6, 2022
Q4 - Repurchase Offer Mailing Date Monday, September 5, 2022
Q4 - Repurchase Offer Deadline Wednesday, October 5, 2022

* Tentative, pending approval by the Board of Directors of RiverNorth Specialty Finance Corporation.

Preferred Issue

5.875% Series A Term Preferred Stock Due 2024

  • Listing: NYSE trading symbol "RMPL"
  • RMPL Prospectus
  • Number of Shares: 1,656,000 shares
  • Initial Public Offering Price: $25.00 per Share
  • Liquidation Preference: $25.00 per Share plus accrued and unpaid dividends
  • Principal at Time of Payment: 100% of the aggregate Liquidation Preference; payable on the mandatory redemption date.
  • Dividend Rate: 5.875% per annum
  • Original Issue Date: October 25, 2017
  • Mandatory Redemption Date: October 31, 2024
  • Dividend Payment Date: Every February 15, May 15, August 15 and November 15, beginning February 15, 2018. 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
02.01.18 01.31.18 02.15.18 $0.44880
05.01.18 04.30.18 05.15.18 $0.36719
08.01.18 07.31.18 08.15.18 $0.36719
11.01.18 10.31.18 11.15.18 $0.36719
02.01.19 01.31.19 02.15.19 $0.36719
05.01.19 04.30.19 05.15.19 $0.36719
08.01.19 07.31.19 08.15.19 $0.36719
11.01.19 10.31.19 11.15.19 $0.36719
02.03.20 01.31.20 2.18.20 $0.36719
05.01.20 04.30.20 5.15.20 $0.36719
08.03.20 07.31.20 8.17.20 $0.36719
11.02.20 10.30.20 11.16.20 $0.36719
02.02.21 02.01.21 02.16.21 $0.36719
05.03.21 04.30.21 05.17.21 $0.36719
08.02.21 07.30.21 08.16.21 $0.36719
11.01.21 10.29.21 11.15.21 $0.36719
02.02.22 02.01.22 02.15.22 - -
05.03.22 05.02.22 05.16.22 - -
08.02.22 08.01.22 08.15.22 - -
11.02.22 11.01.22 11.15.22 - -

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.

Portfolio Management

Patrick Galley, CFA
Chief Executive Officer, Chief Investment Officer
RiverNorth
Read full bio »
Andrew Kerai, CFA
Portfolio Manager, Senior Credit Strategist
RiverNorth
Read full bio »
Janae Stanton
Portfolio Manager, Credit & Portfolio Risk Manager
RiverNorth
Read full bio »

Disclosures & Definitions

See the prospectus for a more detailed description of Fund risks. Investing involves risk. Principal loss is possible.

The profitability of specialty finance and other financial companies is largely dependent upon the availability and cost of capital funds, and may fluctuate significantly in response to changes in interest rates, as well as changes in general economic conditions If the borrower of Alternative Credit (as defined below) in which the Fund invests 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. Substantially all of the Alternative Credit in which the Fund invests will not be guaranteed or insured by a third party. In addition, the Alternative Credit Instruments in which the Fund may invest will not 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. Alternative Credit Instruments are generally not rated by the nationally recognized statistical rating organizations (“NRSROs”). Such unrated instruments, however, are considered to be comparable in quality to securities falling into any of the ratings categories used by such NRSROs to classify “junk” bonds (i.e., below investment grade securities). Accordingly, the Fund's unrated Alternative Credit Instrument investments constitute highly risky and speculative investments similar to investments in “junk” bonds, notwithstanding that the Fund is not permitted to invest in loans that are of subprime quality at the time of investment. Although the Fund is not permitted to invest in loans that are of subprime quality at the time of investment, an investment in the Fund's Shares should be considered speculative and involving a high degree of risk, including the risk of loss of investment. There can be no assurance that payments due on underlying loans, including Alternative Credit, will be made.

Diversification does not ensure a profit or a guarantee against loss.

1 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.

2 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.

3 Based on the Fund's most recent distribution date of October 29th, 2021 market price (MP) $19.6700 and most current distribution rate per share of $0.15230. 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.

4 Leverage ratio is the amount outstanding for all debt and preferred securities divided by the Total Managed Assets of the Fund.

5 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. Leverage creates risks which may adversely affect returns.

As of the prospectus dated 3.23.2020, the Adviser has 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 at 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.

CFA® is a trademark owned by the CFA Institute.

Past performance is no guarantee of future results.