RiverNorth and Oaktree launch high income fund
RiverNorth Capital Management has launched the RiverNorth/Oaktree High Income Fund, a mutual fund focused on total return consisting of long-term capital appreciation and income.
The fund is advised by RiverNorth and is designed to capitalise on market inefficiencies in both closed-end funds and the credit markets.
Oaktree Capital Management, a subsidiary of Oaktree Capital Group, co-manages the fund as sub-adviser to RiverNorth.
The fund provides daily liquidity and allocates its assets among three strategies: a closed-end fund strategy (managed by RiverNorth), a senior loan strategy and a high yield bond strategy (both managed by Oaktree).
"The RiverNorth/Oaktree High Income Fund provides investors with access to two experienced managers that are proven in their respective strategies, as well as a unique opportunity to potentially benefit from the fund's high income strategy at a time when investors are hungry for higher yields," says Brian Schmucker (pictured), chief executive officer of RiverNorth. "We believe Oaktree's value-oriented and risk-controlled strategies, as well as our flexible and opportunistic approach to closed-end fund investing, will hold tremendous appeal to both advisors and their clients seeking yield and diversification during periods of market volatility."
The allocation between the high yield bond and senior loan strategies will be tactically managed based both on market opportunities and the anticipated risk/reward trade-offs between the two asset classes. RiverNorth's closed-end fund strategy has the flexibility to invest across all asset classes represented in the closed-end fund universe.
"We are pleased to partner with RiverNorth, a leader in closed-end fund investing. Through this fund, individual investors and advisors can access a tactical allocation between Oaktree's senior loan and high yield strategies that has been available to institutional clients for many years," says Howard Marks, chairman of Oaktree.
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