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Rating:DoubleLine Tactically Aligns With a Chitown Manager Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, January 19, 2011

DoubleLine Tactically Aligns With a Chitown Manager

Reported by Neil Anderson, Managing Editor

DoubleLine Capital [see profile] is subadvising two pieces of a new mutual fund for a new partner. Today RiverNorth Capital [see profile] confirmed the launch of its RiverNorth/DoubleLine Strategic Income Fund (see prospectus). DoubleLine will sub-advise the core fixed income and opportunistic income parts of the fund, while RiverNorth will directly manage a tactical portfolio of income-producing closed-end funds.

Jeff Gundlach
DoubleLine Capital
CEO and CIO
"We look forward to a strong partnership," DoubleLine CEO and chief investment officer Jeff Gundlach stated.

RiverNorth first filed for the new fund in October (see The MFWire, 10/14/2010).

RiverNorth's own Patrick Galley and Stephen O'Neill, along with DoubleLine founder Gundlach, PM the fund. The R (retail) shares cap at costing 120 basis points and the I (institutional) shares cap at 95 bps -- both share classes are no load.

ALPS serves as the new fund's distributor and transfer agent, Northern Trust as its custodian, Thompson Hine as its legal counsel and Cohen Fund Audit Services as its accounting firm.

The fund opened to new investors on December 30.


Company Press Release

CHICAGO, Jan. 19, 2011 -- RiverNorth Capital, a leading investment management firm specializing in quantitative and qualitative closed-end fund trading strategies, announced today the launch of a new mutual fund, the RiverNorth/DoubleLine Strategic Income Fund (Class R Symbol: RNDLX, Class I Symbol: RNSIX). The Fund will be sub-advised by DoubleLine Capital LP.

"RiverNorth specializes in opportunistic closed-end fund investment strategies that offer an alternative to conventional modes of investing," said Patrick Galley, RiverNorth's Chief Investment Officer. "Our new mutual fund is designed to capitalize on market inefficiencies in both closed-end funds and the fixed-income markets in partnership with one of the best fixed income managers in the business. We're very excited to work with DoubleLine, whose strategies complement our alpha-oriented approach."

The RiverNorth/DoubleLine Strategic Income Fund's investment objective seeks to achieve current income and overall total return. The Fund's portfolio managers are Mr. Galley; Stephen O'Neill, Portfolio Manager of RiverNorth; and Jeffrey Gundlach, CEO and Chief Investment Officer of DoubleLine. The Fund is an open-end mutual fund and was opened to new investors on December 30, 2010.

The Fund's assets will be allocated among three principal strategies: Tactical Closed-end Fund Income, Core Fixed Income and Opportunistic Income. The amount allocated to each strategy may change depending on RiverNorth and DoubleLine's assessment of market risk, security valuations, market volatility and the prospects for earning income and total return. RiverNorth manages the Tactical Closed-end Fund Income strategy, while DoubleLine manages the Core Fixed Income and Opportunistic Income strategies.

The Tactical Closed-end Fund Income strategy will primarily invest in income producing closed-end funds. The Core Fixed Income strategy will invest in a variety of fixed income instruments using active management of asset class exposure and will monitors the duration of the securities allocated to the strategy to seek to mitigate the strategy's exposure to interest rate risk. The Opportunistic Income strategy will invest in fixed income instruments. The term "opportunistic" is used to indicate that portion of the Fund allocated to this strategy that will be invested when certain market conditions exist that offer potentially attractive risk adjusted returns.

"DoubleLine is excited to team up with RiverNorth on a mutual fund designed to deliver superior risk-adjusted returns through three complementary strategies," said Mr. Gundlach. "RiverNorth's disciplined investment process and opportunistic philosophy are consistent with DoubleLine's focus on active risk management and security selection. We look forward to a strong partnership."

For more information, please visit www.rivernorthfunds.com and www.doubleline.com.

To request more information about RiverNorth Capital, please contact Amiee Watts at 973-784-0025 or amiee@jcprinc.com.

About RiverNorth Capital

RiverNorth Capital Management, LLC, is a leading investment management firm specializing in closed-end fund trading strategies. As one of the nation's largest closed-end fund investors, RiverNorth makes quantitative and qualitative closed-end fund strategies available to advisors, institutions and individual investors. RiverNorth Capital is the Investment Adviser to RiverNorth Funds, and is the General Partner of multiple private investment partnerships. RiverNorth's headquarters is in Chicago, IL. Its offices can be reached by telephone at (312) 832-1440 or by email at info@rivernorthfunds.com

About DoubleLine Capital

DoubleLine Capital LP is a fixed income investment management firm and a registered investment adviser under the Investment Advisers Act of 1940. The firm is majority employee-owned with CEO Jeffrey Gundlach and President Philip Barach holding a combined controlling interest in the firm. DoubleLine's headquarters is in Los Angeles, CA.

You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund's prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a copy of the Fund's prospectus when it becomes effective by calling 1-888-848-7569.

Past performance is no guarantee of future results. Performance data current to the most recent month end may be obtained by calling 1-888-848-7569. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

Alpha is a measure of a fund's actual returns and expected performance, given its level of risk (as measured by beta). Beta reflects the sensitivity of a fund's return to fluctuations in the market index.

Investments in closed end funds are subject to investment risk, including the possible loss of the entire principal amount that you invest. The value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably. At any point in time an investment may be worth less than the original investment, even after considering the reinvestment of fund dividends and distributions. Closed-end funds also carry price risk, or the risk that shares may trade at prices different from their net asset values.

RVN000110 20130105

Distributed by ALPS Distributors, Inc., Denver, CO, Member FINRA. 

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