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River North Buy Write/Managed Volatility

edited January 2014 in Fund Discussions
Any idea why RiverNorth changed the name of RNBWX? I assume it was for marketing reasons, but I also take it as a bad omen. Any thoughts on the performance of the fund, which MFO profiled, to date?


  • edited January 2014
    From the Supplement to the Prospectus
    On November 20, 2013, the Board of Trustees of RiverNorth Funds voted to approve a name and strategy change for the RiverNorth Dynamic Buy-Write Fund (the “Fund”). Effective January 1, 2014 the Fund’s name will be changed to the RiverNorth Managed Volatility Fund.

    Although the Fund’s objective of total return with lower volatility that than the Standard and Poor’s 500 Index will remain the same, the implementation of the strategy in pursuit of the objective will change. Effective January 28, 2014, the Fund will no longer be required to pursue its objective by investing at least 80% of the Fund’s net assets, plus borrowings for investment purposes, in a portfolio of common stocks, preferred stock and options on those securities. It is anticipated that the Fund will continue to invest substantially in these securities; however the increased flexibility to invest in securities and options other than those coupled together in a “buy-write” strategy is deemed critical by the portfolio manager.
  • "Old too soon; smart too late." (Benj. Franklin) pretty much sums up my investment career. If you understand what these people are trying to do, you might review the M* summary, which implies they aren't doing too well against their comparators (Spellcheck implies I made up this word, but it makes sense to me).

    Total return with lower volatility remains the Holy Grail of investing. If someone really has found that strategy, I doubt they would share it with me.

    I'm sure there are funds that changed their strategies and were 5 star or whatever, but I suspect the majority were less successful.
  • Very helpful, thanks. Time to dump the small position I still have in it.
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