CHICAGO--(BUSINESS WIRE)--RiverNorth Managed Duration Municipal Income Fund, Inc. (the “Fund”) (NYSE: RMM) announced that its Board of Directors (the “Board”) has approved a 5.50% level distribution policy effective September 1, 2019. Accordingly, the Fund is declaring monthly distributions for September, October, November and December 2019.
The Board has approved the distributions of $0.0917 per share of common stock, payable on the dates noted below. In accordance with the level distribution policy, the rate has been set equal to 5.50% based on the Fund’s initial public offering price of $20.00 per share.
The following dates apply to the distributions declared:
Record Date |
Payable Date |
Per Share |
September 12, 2019 |
September 30, 2019 |
$0.0917 |
October 17, 2019 |
October 31, 2019 |
$0.0917 |
November 14, 2019 |
November 29, 2019 |
$0.0917 |
December 12, 2019 |
December 31, 2019 |
$0.0917 |
Level Distribution Policy
As defined in the prospectus, commencing with the first distribution, the Fund is implementing a level distribution policy. The Fund’s intention under the level distribution policy is to provide for monthly distributions to stockholders at a constant and fixed (but not guaranteed) rate that is reset annually. However, there can be no guarantee that the distribution policy will be successful in its goals. The Fund’s ability to maintain a stable level of distributions to stockholders 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 the Fund to continue to make distributions in accordance with the level distribution policy may be affected.
The Board expects that any declaration of distributions to stockholders, including final amounts and dates applicable to each, will be made and announced quarterly. Stockholders have the option of reinvesting these distributions in additional common shares through the Fund’s automatic dividend reinvestment plan, or electing to receive cash by contacting DST Systems, Inc. (the “Plan Administrator”). For further information, stockholders should carefully read the description of the dividend reinvestment plan in the prospectus.
The Fund may at times, in its discretion, pay out less than the entire amount of net investment income earned in any particular period and may at times pay out such accumulated undistributed income in addition to net investment income earned in other periods in order to permit the Fund to maintain a stable level of distributions. As a result, the dividend paid by the Fund to stockholders for any particular period may be more or less than the amount of net investment income earned by the Fund during such period.
To the extent that sufficient investment income is not available on a monthly basis, the Fund’s distributions may consist of return of capital in order to maintain the distribution amount. A return of capital occurs when some or all of the money that stockholders 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, the level distribution policy may require the Fund to sell its portfolio securities at a less than opportune time to meet the distribution amount.
Investors should not make any conclusions about the Fund’s investment performance from the amount of the Fund’s distributions or the Fund’s level distribution policy. With each distribution that does not consist solely of net investment income, the Fund will issue a notice to stockholders 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 stockholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions 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 individual stockholders a Form 1099-DIV for the calendar year that will tell them how to report these distributions for federal income tax purposes. In addition, the source of the monthly distributions will be available on www.rivernorth.com.
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The investment objective of the Fund is current income exempt from regular U.S. federal income taxes (but which may be includable in taxable income for purposes of the Federal alternative minimum tax). The Fund’s secondary investment objective is total return.
The Fund is a closed-end fund and does not continuously issue stock for sale as open-end mutual funds do. The Fund now trades in the secondary market. Investors wishing to buy or sell stock need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market value. RiverNorth Capital Management, LLC is the investment adviser to the Fund. MacKay Shields LLC is the subadviser to the Fund. RiverNorth is not affiliated with MacKay Shields. ALPS Distributors, Inc. member FINRA is not affiliated with RiverNorth Capital Management, LLC.
The RiverNorth Managed Duration Municipal Income Fund is new and has limited performance history. An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program. The Fund is designed as a long-term investment and not as a trading vehicle.
Risk is inherent in all investing. Investing in any investment company security involves risk, including the risk that you may receive little or no return on your investment or even that you may lose part or all of your investment. Therefore, before investing in the Common Shares, you should consider the risks as well as the other information in the prospectus.
Investors should read the Fund’s prospectus and consider the Fund's investment objective, risks, charges and expenses carefully before investing. The prospectus should be read carefully before investing. For more information, please read the prospectus, call your financial professional or call 844.569.4750
RiverNorth Capital Management, LLC
RiverNorth is an investment management firm founded in 2000 that specializes in opportunistic strategies in niche markets where the potential to exploit inefficiencies is greatest. RiverNorth is the manager to multiple registered and private funds.
RiverNorth® is a registered trademark of RiverNorth Capital Management, LLC.
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