RiverNorth Closed-End Funds Declare Monthly Distributions
MWN-AI** Summary
RiverNorth Capital Management, a notable investment manager, has announced the scheduled monthly distributions for its closed-end funds for the months of July, August, and September 2025. These distributions, which are part of their level distribution policies, remain contingent on Board approval and aim to provide consistent returns to shareholders.
The distribution amounts vary across several funds. For instance, the RiverNorth Opportunistic Municipal Income Fund (RMI) is set to distribute $0.0945 per share, while the RiverNorth Managed Duration Municipal Income Fund (RMM) will distribute $0.0905 per share. Each fund’s Net Asset Value (NAV) as of June 30, 2025, has been disclosed, alongside the annualized current distribution rates at both NAV and market price.
RiverNorth's funds also offer shareholders two options for receiving distributions: full and fractional shares through a dividend reinvestment plan or cash payments. This approach provides flexibility and benefits, especially when funds trade at a discount to NAV. However, shareholders should be mindful that part of the distributions may be categorized as returns of capital, which occur when an investor receives back a portion of their invested principal. This return can impact a fund’s total assets and potentially lead to increased expense ratios.
As a firm managing approximately $4.9 billion in assets, RiverNorth emphasizes transparency and communication with shareholders regarding distribution amounts, sources, and tax implications. They advise investors to review prospectuses and various tax considerations relevant to these distributions carefully.
MWN-AI** Analysis
RiverNorth's recent announcement regarding the monthly distribution schedule for its closed-end funds highlights significant opportunities and considerations for investors. Each fund employs a level distribution policy, aimed at providing consistent payouts, but potential investors should closely assess the underlying financial structures and recent performance metrics.
As of June 30, 2025, several funds like the RiverNorth Opportunistic Municipal Income Fund (RMI) and RiverNorth Managed Duration Municipal Income Fund (RMM) show attractive annualized distribution rates of 7.34% and 7.38% based on their NAV. However, it's crucial to recognize that a significant portion of their distributions may be characterized as return of capital, potentially impacting long-term asset value and expense ratios. For instance, RMI reported that nearly 73% of its distribution stems from a return of capital, which requires careful consideration as it doesn't equate to investment income.
Investors should also evaluate the market prices compared to NAV. Funds trading at a discount, like RMMZ (-13% of NAV), might present short-term entry points for generating income if reinvested wisely, particularly through the dividend reinvestment plan, which allows purchasing shares at favorable rates.
Additionally, the current rate environment and market volatility can affect future distribution capabilities. The reliance on net investment income versus capital returns presents a risk that could hinder the sustainability of high payouts, particularly if market conditions shift unfavorably.
In summary, while RiverNorth’s funds offer appealing income options, investors must exercise diligence in understanding distribution mechanisms, market conditions, and risk factors involved with capital return versus net income. Comprehensive evaluation and strategic positioning are vital for optimizing returns in this setting.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
In accordance with the RiverNorth closed-end funds (the “Funds”) level distribution policies, the Funds have established the distribution dates for July, August and September 2025. The payments of the distributions are subject to Board approval.
Ex Date | Record Date | Payable Date | ||
7/15/2025 | 7/15/2025 | 7/31/2025 | ||
8/15/2025 | 8/15/2025 | 8/29/2025 | ||
9/15/2025 | 9/15/2025 | 9/30/2025 |
Tax-Exempt Distributions 1
Fund Name | Ticker | Distribution | Net Asset | Annualized | Market Price | Annualized | Inception to | |||||||
RiverNorth Opportunistic Municipal Income Fund, Inc. 1,2 | RMI | $0.0945 | $15.46 | 7.34% | $14.25 | 7.96% | $8.91 | |||||||
RiverNorth Managed Duration Municipal Income Fund, Inc. 1,2 | RMM | $0.0905 | $14.72 | 7.38% | $13.41 | 8.10% | $6.42 | |||||||
RiverNorth Flexible Municipal Income Fund, Inc. 1,2 | RFM | $0.0940 | $15.35 | 7.35% | $13.95 | 8.09% | $7.73 | |||||||
RiverNorth Flexible Municipal Income Fund II, Inc. 1,2 | RFMZ | $0.0858 | $13.99 | 7.36% | $12.64 | 8.15% | $4.61 | |||||||
RiverNorth Managed Duration Municipal Income Fund II, Inc. 1,2 | RMMZ | $0.0951 | $15.53 | 7.35% | $14.06 | 8.12% | $3.95 |
Taxable Distributions
Fund Name | Ticker | Distribution | Net Asset | Annualized | Market Price | Annualized | Inception to | |||||||
RiverNorth Opportunities Fund, Inc. 3 | RIV | $0.1277 | $12.51 | 12.25% | $12.26 | 12.50% | $19.38 | |||||||
RiverNorth Capital and Income Fund, Inc. 4 | RSF | $0.1357 | $15.81 | 10.30% | $14.55 | 11.19% | $16.98 | |||||||
RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. 5 | OPP | $0.0950 | $8.94 | 12.75% | $8.55 | 13.33% | $14.57 | |||||||
^As of 6/30/2025. The inception date for each closed-end fund follows: RMI (10/25/2018), RMM (7/25/2019), RFM (3/26/2020), RFMZ (2/24/2021), RMMZ (2/10/2022), RIV (12/24/2015), RSF (9/22/2016), and OPP (9/27/2016). |
Each Fund maintains a level distribution policy with the intention of providing monthly distributions to shareholders at a constant and fixed (but not guaranteed) rate that is reset annually. Although there can be no guarantee that the distribution policy will be successful in its goals, shareholders may potentially benefit from both increased liquidity and flexibility in managing their Fund investments. Each Fund’s ability to maintain a stable level of distributions to shareholders will depend on a number of factors, including changes in the financial market, market interest rates, and performance of overall equity and fixed income markets. As portfolio and market conditions change, the ability of each Fund to continue to make distributions in accordance with the level distribution policy may be affected.
Holders of each Fund’s common stock will receive the distribution under one of two options:
1. Receive additional full and fractional shares of the respective Fund’s common stock through its dividend reinvestment plan
or,
2. Elect to receive cash for the distribution.
Shareholders may consider the dividend reinvestment plan as a convenient way to add to their Fund holdings along with other potential benefits. For example, if a Fund is trading at a discount to NAV, the investor generally receives shares acquired on the secondary market at/near that discount to NAV. In the case where a Fund is trading at a premium to NAV, the investor will typically receive newly issued shares by the Fund at NAV.
For further information, shareholders should carefully read the description of the dividend reinvestment plan in each Fund’s prospectus and/or annual report. Contact your broker-dealer to confirm your distribution election.
With each distribution that does not consist solely of net investment income, the respective Fund will issue a notice to shareholders and an accompanying press release that will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. This information is posted to the Closed-End Funds section of www.rivernorth.com . The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Fund’s investment experience during its full fiscal year and may be subject to changes based on tax regulations. Each Fund will send shareholders a Form 1099-DIV for the calendar year that will tell them how to report these distributions for federal income tax purposes.
Each Fund may at times distribute more than its net investment income and net realized capital gains; therefore, a portion of the distribution may result in a return of capital. A return of capital occurs when some or all of the money that shareholders invested in a Fund is paid back to them. A return of capital does not necessarily reflect a Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’ Any such returns of capital will decrease a Fund’s total assets and, therefore, could have the effect of increasing a Fund’s expense ratio. In addition, in order to make the level of distributions called for under its plan, a Fund may have to sell its portfolio securities at a less than opportune time.
About RiverNorth
RiverNorth Capital Management, LLC is an independent investment manager and closed-end fund expert specializing in opportunistic strategies and structures built to exploit market inefficiencies. Founded in 2000, RiverNorth manages $4.9 billion 6 of assets in registered funds, private funds and separately managed accounts.
1 | Monthly distributions from RMI, RMM, RFM, RFMZ and RMMZ are expected to be generally exempt from regular U.S. federal income taxes, however, portions of these Funds’ distributions may (i) be subject to U.S. federal income tax, (ii) be includable in taxable income for purposes of the federal alternative minimum tax, or (iii) constitute a return of capital. Such distributions will also generally be subject to state and local taxes. RiverNorth does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. | |
2 | In accordance with their level distribution policies, the annual distribution rates for RMI, RMM, RFM, RFMZ and RMMZ have been set equal to 6.75% of the average of each Fund’s NAV per share as reported for the final five trading days of the preceding calendar year. The following estimates are as of June 30, 2025. RMI: The Fund estimates that 27.04% of the distribution is attributable to current year net investment income and 72.96% is attributable to return of capital. RMM: The Fund estimates that 49.44% of the distribution is attributable to current year net investment income and 50.56% is attributable to return of capital. RFM: The Fund estimates that 43.81% of the distribution is attributable to current year net investment income and 56.19% is attributable to return of capital. RFMZ: The Fund estimates that 43.94% of the distribution is attributable to current year net investment income and 56.06% is attributable to return of capital. RMMZ: The Fund estimates that 44.82% of the distribution is attributable to current year net investment income and 55.18% is attributable to return of capital. | |
3 | In accordance with its level distribution policy, RIV’s annual distribution rate has been set equal to 12.50% of the average of the Fund’s NAV per common share reported on the final five trading days of the preceding calendar year. As of June 30, 2025, the Fund estimates that 9.58% of the distribution is attributable to current year net investment income and 90.42% is attributable to return of capital. | |
4 | In accordance with its level distribution policy, RSF’s annual distribution rate has been set equal to 10.00% of the average of the Fund’s NAV per common share reported on the final five trading days of the preceding calendar year. As of June 30, 2025, the Fund estimates that 100.00% of the distribution is attributable to current year net investment income. | |
5 | In accordance with its level distribution policy, OPP’s annual distribution rate has been set equal to 12.50% of the average of the Fund’s NAV per common share reported on the final five trading days of the preceding calendar year. As of June 30, 2025, the Fund estimates that 64.30% of the distribution is attributable to current year net investment income and 35.70% is attributable to return of capital. | |
6 | As of May 31, 2025. Firm AUM reflects Managed Assets which includes the effects of leverage and investments in affiliated funds. |
An investment in the Funds involves risk, including loss of principal.
Investors should consider a Fund's investment objective, risks, charges and expenses carefully before investing. Each Fund’s prospectus and most recent periodic reports contain this and other important information about the respective Fund and may be obtained by visiting rivernorth.com/literature or by calling your financial professional or RiverNorth at 844.569.4750.
Member Firm ALPS Distributors Inc. Marketing services provided by ALPS Distributors Inc.
RiverNorth Capital Management, LLC is not affiliated with DoubleLine Capital LP, or ALPS Distributors, Inc.
Not FDIC Insured | May Lose Value | No Bank Guarantee
RiverNorth® is a registered trademark of RiverNorth Capital Management, LLC. DoubleLine® is a registered trademark of DoubleLine Capital LP.
©2000-2025 RiverNorth Capital Management, LLC. All rights reserved. RMI000365
View source version on businesswire.com: https://www.businesswire.com/news/home/20250701842147/en/
RiverNorth CEF Investor Relations
800-646-0148, Option 1
CEF@rivernorth.com
FAQ**
How does the distribution strategy for "RiverNorth Flexible Municipal Income Fund II Inc. RFMZ" compare to the other RiverNorth funds in terms of its current distribution rates and expected return of capital percentages?
What factors could influence the ability of "RiverNorth Flexible Municipal Income Fund II Inc. RFMZ" to maintain its level distribution policy in the future, especially concerning changes in market conditions?
Can you provide insights on the estimated composition of distributions for "RiverNorth Flexible Municipal Income Fund II Inc. RFMZ" for the upcoming periods and how this could affect shareholder returns?
How does the current market price of "RiverNorth Flexible Municipal Income Fund II Inc. RFMZ" compare to its NAV, and what does this imply about investor sentiment toward the fund?
**MWN-AI FAQ is based on asking OpenAI questions about RiverNorth Flexible Municipal Income Fund Inc. (NYSE: RFM).
NASDAQ: RFM
RFM Trading
-0.83% G/L:
$14.40 Last:
22,165 Volume:
$14.53 Open:
