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RiverNorth to Reopen DoubleLine-Subadvised Fund

Morgan Stanley to close a Silver-rated global stock fund to new investors and T. Rowe Price bans some 1,300 employees of American Airlines from trading T. Rowe funds in the airline's employee-sponsored retirement plan.

Morningstar Fund Analysts, 08/29/2013

On Monday, Aug. 26, RiverNorth Funds announced plans to reopen to new investors a fund that is subadvised by DoubleLine Capital Management and DoubleLine's founder, noted bond manager Jeffrey Gundlach.

Launched at the end of 2010, River North/DoubleLine Strategy Income RNSIX employs three strategies: a closed-end fund income strategy, a core fixed-income strategy, and an opportunistic income strategy. RiverNorth manages the tactical closed-end fund income strategy, while DoubleLine oversees the core bond and opportunistic income strategies.

Back in February 2012, RiverNorth had announced that it would close the fund to new investors as of March 30, 2012. In a statement at the time, RiverNorth's chief investment officer had said that the decision was motivated by a desire for the fund's assets not to exceed "a level where they would alter or impact the fund's investment strategy, which was our primary driver in deciding to soft-close the fund."

Now, in a release, RiverNorth noted that its decision to reopen the fund "is predicated on the expectation that inflows from new investors can be invested effectively and in a manner consistent with the fund's objective. Opportunistic investing in closed-end funds during times of elevated investor fear and market inefficiency is a cornerstone of the fund’s strategy."

Gundlach and RiverNorth CEO Patrick Galley have scheduled a live webcast on Sept. 18 to discuss the reopening of the fund.

The fund currently has $1.1 billion in assets.

Morgan Stanley to Close Silver-Rated World-Stock Fund to New Investors
Silver-rated Morgan Stanley Institutional Global Franchise MSFAX is slated to close to most new investors on Nov. 29, 2013. Since the current investment team took the helm in June 2009, the world-stock fund has continued to generate superb risk-adjusted returns. While its asset base is relatively small at less than $600 million, the team ran a total of $16.8 billion in this strategy as of June 30, 2013. And the portfolio is quite concentrated; 62.5% of assets were stuffed into its top 10 holdings as of June 2013. The team also manages Silver-rated Morgan Stanley Institutional International Equity MSIQX, which remains open.

T. Rowe Price Bans 1,300 American Airlines Employees from Trading Funds in Airline's 401(k) Plan 
T. Rowe Price has banned roughly 1,300 American Airlines employees from trading T. Rowe Price funds in the airline's 401(k) plan. The plan participants were reportedly performing short-term trades on four T. Rowe funds based on the advice of the EZTracker newsletter, which provides monthly trade recommendations. Some of the newsletter subscribers had previously faced temporary trading restrictions. Another 800 American Airlines employees recently received warnings about their trading activity in the plan, according to Reuters.

Morningstar fund analysts cover more than 1,700 mutual funds and write regular commentary covering fund industry news, fund investing trends, picks, portfolio planning, international investing, and more.

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