RMM - RMM: A Note Of Caution For This CEF Of Muni CEFs

• On the face of it RMM looks a terrific option in the muni sector - high yield, attractive discount valuation and very high-quality underlying portfolio.
• The trouble is that the combination of the fund's high-quality assets, high leverage costs and high management fees combine to result in a sub-1% income yield.
• The fund has also underperformed the sector in NAV terms despite the higher-quality of its portfolio due primarily to its duration hedge.
• Overall, the fund's high-fees, duration hedge, fragile and expensive leverage structure, and additional volatility make it a bad choice for investors.

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