* Formerly known as RiverNorth Specialty Finance Corporation. Effective December 7, 2022 the Fund changed its name to RiverNorth Capital and Income Fund, Inc.
The objective of RiverNorth Capital and Income Fund, Inc. 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 May 31st, 2023 closing price of $15.28) of 11.18%
Up to $35 million buyback program to repurchase shares at a discount in the secondary market
Fund Information as of 5.31.2023
NYSE Symbol
RSF
CUSIP
76882B108
Inception Date
9.22.2016
Structure
Closed-end interval fund
Net Assets
$66.72M
Managed Assets*
$109.12M
Repurchase Program**
Quarterly offer to repurchase 5%-25% of shares
Distribution Frequency
Monthly
Tax Reporting
1099
Net Asset Value (NAV)
Daily
Distribution Yield3
11.18%
Leverage Ratio4
38.9%
* 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 3.31.2023
Q1 2023
1 Year
3 Year†
5 Year†
Since Inception†*
RiverNorth Capital and Income Fund, Inc. Net Asset Value
0.25%
-3.61%
6.41%
3.14%
3.67%
RiverNorth Capital and Income Fund, Inc. Market Price
-6.39%
-11.25%
9.72%
2.03%
2.81%
Bloomberg U.S. Aggregate Bond Index5
2.96%
-4.78%
-2.77%
0.91%
0.56%
Total Returns for the Period Ending 5.31.2023
May
3 Mo
YTD
1 Year
3 Year†
5 Year†
Since Inception†*
RiverNorth Capital and Income Fund, Inc. Net Asset Value
0.80%
0.54%
1.49%
-0.41%
8.56%
3.36%
3.76%
RiverNorth Capital and Income Fund, Inc. Market Price
0.47%
-0.21%
-5.58%
-6.82%
11.62%
2.17%
2.87%
Bloomberg U.S. Aggregate Bond Index5
-1.09%
2.04%
2.46%
-2.14%
-3.65%
0.81%
0.47%
† 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
Asset Class Allocation as of 5.31.2023
Type
Exposure
Small Business Whole Loans
47%
Investment Company Debt
25%
Closed End Funds (CEFs)
13%
Cash
8%
Special Purpose Acquisition Companies (SPACs)
5%
Business Development Companies (BDCs)
1%
Small Business Whole Loans
47%
Investment Company Debt
25%
Closed End Funds (CEFs)
13%
Cash
8%
Special Purpose Acquisition Companies (SPACs)
5%
Business Development Companies (BDCs)
1%
Totals may not add up to 100% due to rounding.
Portfolio asset allocations are estimates made by the adviser and are subject to change.
* Tentative, pending approval by the Board of Directors of RiverNorth Capital and Income Fund, Inc.
Preferred Issue
5.875% Series A Term Preferred Stock Due 2024
NYSE Trading Symbol
RMPL
Number of shares
1,656,000
Initial Public Offering Price
$25.00 per Share
Liquidation Preference
$25.00 per Share plus accumulated and unpaid dividends
Dividend Rate
5.875% per annum
Original Issue Date
October 25, 2017
Mandatory Redemption Date
October 31, 2024
Dividend Payment Dates
Quarterly 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
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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 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, CFAChief Executive Officer, Chief Investment OfficerRiverNorthRead full bio »
Janae StantonPortfolio Manager, Credit & Portfolio Risk ManagerRiverNorthRead 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 May 31st, 2023 market price (MP) $15.28 and most current distribution rate per share of $0.14240.
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 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. The Bloomberg US 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.