RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.
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 distinct 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.
RiverNorth Tactical Closed-End Fund Income Strategy:
- Seeks to generate returns through investments in income-producing securities
- Seeks to derive value from the discount and premium spreads associated with closed-end funds
- Typically invests in closed-end funds, business development companies and exchange-traded funds
DoubleLine Opportunistic Income Strategy*:
- Seeks to generate risk-adjusted returns through investments in fixed-income instruments
- Primarily invests in agency and non-agency residential mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities
- Seeks to derive value from inefficiencies within the subsectors of the fixed income market while maintaining active risk constraints
RiverNorth Alternative Credit Strategy:
- Seeks to achieve a high level of income through investments in alternative credit instruments
- Primarily invests in loans to small and mid-sized companies, notes or other pass-through obligations issued by an alternative credit platform, or asset-backed securities representing ownership in a pool of alternative credit
*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
*Managed assets include assets attributable to leverage.
The NAV ticker symbol represents the Fund’s Net Asset Value per share as it is reported by the Fund Sponsor via NASDAQ.
Portfolio Statistics
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.
- 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.
- 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.
- 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.
- 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.