• / Free eNewsletters & Magazine
  • / My Account
Home>RiverNorth/DoubleLine Strategic Opportunities Fund, Inc. Announces Adoption of Managed Distribution Plan of $0.15 Per Share

RiverNorth/DoubleLine Strategic Opportunities Fund, Inc. Announces Adoption of Managed Distribution Plan of $0.15 Per Share

RiverNorth/DoubleLine Strategic Opportunities Fund, Inc. Announces Adoption of Managed Distribution Plan of $0.15 Per Share

10/04/2017

RiverNorth/DoubleLine Strategic Opportunities Fund, Inc. Announces Adoption of Managed Distribution Plan of $0.15 Per Share

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (the “Fund”), which is traded on the New York Stock Exchange under the symbol “OPP”, announced today that its Board of Directors has approved the adoption of a managed distribution plan in accordance with RiverNorth Capital Management, LLC Section 19(b) exemptive order whereby the Fund will, beginning in October 2017, make monthly distributions to common shareholders set initially at a fixed monthly rate of $0.15 per common share. Distributions for the months of October, November, and December 2017 have been announced. The distribution is subject to the following ex-distribution, record and payable dates below set by the Fund’s Board of Trustees. Based on the Fund’s current share price of $19.10 (as of market close September 29, 2017), the distribution represents an annualized distribution rate of 9.42%.

The following dates apply to the distributions declared:

             
Ex Date     Record Date     Payable Date
October 12, 2017     October 13, 2017     October 31, 2017
November 16, 2017     November 17, 2017     November 30, 2017
December 14, 2017     December 15, 2017     December 29, 2017
       

The primary purpose of the managed distribution plan is to provide shareholders with a constant, but not guaranteed, fixed minimum rate of distribution each month. The managed distribution plan is intended to narrow the discount between the market price and the NAV of the Fund’s common shares, but there is no assurance that the plan will be successful in doing so.

Under the managed distribution plan, to the extent that sufficient investment income is not available on a monthly basis, the Fund’s distributions may consist of long-term capital gains and/or return of capital in order to maintain the distribution rate. Investors should not make any conclusions about the Fund’s investment performance from the amount of the Fund’s distributions or from the terms of the Fund’s managed distribution plan. The Board may amend the terms of the plan or terminate the plan at any time without prior notice to the Fund’s shareholders. The amendment or termination of the managed distribution plan could have an adverse effect on the market price of the Fund’s common shares. The managed distribution plan will be subject to periodic review by the Board, including a yearly review of the annual minimum fixed rate to determine if an adjustment should be made.

With each distribution that does not consist solely of net investment income, the 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. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during its full fiscal year and may be subject to changes based on tax regulations. The 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.

The 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 the Fund is paid back to them. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with ‘yield’ or ‘income.’ Any such returns of capital will decrease the Fund’s total assets and, therefore, could have the effect of increasing the Fund’s expense ratio. In addition, in order to make the level of distributions called for under its plan, the Fund may have to sell its portfolio securities at a less than opportune time.

About RiverNorth

©2017 Morningstar Advisor. All right reserved.